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Loans (Tables)

9 Months Ended

Sep. 30, 2020



	September 30,	December 31,
	2020	2019

SBL non-real estate	$ 293,488	$ 84,579
SBL commercial mortgage	270,264	218,110
SBL construction	27,169	45,310
Small business loans *	590,921	347,999
Direct lease financing	430,675	434,460
SBLOC / IBLOC **	1,428,253	1,024,420
Advisor financing ***	26,600	-
Other specialty lending	2,194	3,055
Other consumer loans ****	3,809	4,554
	2,482,452	1,814,488
Unamortized loan fees and costs	6,308	9,757
Total loans, net of unamortized loan fees and costs	$ 2,488,760	$ 1,824,245

	September 30,	December 31,
	2020	2019

SBL loans, net of (deferred fees) and costs of $(607) and $4,215
for September 30, 2020 and December 31, 2019, respectively	$ 590,314	$ 352,214
SBL loans included in commercial loans at fair value	250,958	220,358
Total small business loans	$ 841,272	$ 572,572

* The preceding table shows small business loans, or SBL, and SBL held at fair value 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 $17.8 million of non-SBA loans as of September 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 September 30, 2020 and December 31, 2019, respectively, IBLOC loans amounted to $359.4 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 $151,000 and $882,000 at September 30, 2020 and December 31, 2019, respectively.

Impaired Loans



	September 30, 2020
	Recorded ‎investment	Unpaid ‎principal ‎balance	Related ‎allowance	Average ‎recorded ‎investment	Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$ 445	$ 3,525	$ -	$ 365	$ 2
SBL commercial mortgage	2,036	2,036	-	1,056	-
SBL construction	-	-	-	-	-
Direct lease financing	260	260	-	4,116	-
Consumer - home equity	567	567	-	554	8
With an allowance recorded
SBL non-real estate	2,775	2,775	(1,818)	3,310	12
SBL commercial mortgage	5,481	5,481	(1,010)	2,098	-
SBL construction	711	711	(26)	711	-
Direct lease financing	544	544	(43)	782	-
Consumer - home equity	-	-	-	30	-
Total
SBL non-real estate	3,220	6,300	(1,818)	3,675	14
SBL commercial mortgage	7,517	7,517	(1,010)	3,154	-
SBL construction	711	711	(26)	711	-
Direct lease financing	804	804	(43)	4,898	-
Consumer - home equity	567	567	-	584	8
	$ 12,819	$ 15,899	$ (2,897)	$ 13,022	$ 22



	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


	September 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	$ 2,541	$ 394	$ 2,935	$ 3,693
SBL commercial mortgage	5,481	2,036	7,517	1,047
SBL construction	711	-	711	711
Direct leasing	544	260	804	-
Consumer	-	308	308	345
	$ 9,277	$ 2,998	$ 12,275	$ 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



	September 30,	December 31,
	2020	2019

Non-accrual loans
SBL non-real estate	$ 2,935	$ 3,693
SBL commercial mortgage	7,517	1,047
SBL construction	711	711
Direct leasing	804	-
Consumer	308	345
Total non-accrual loans	12,275	5,796

Loans past due 90 days or more and still accruing	24	3,264
Total non-performing loans	12,299	9,060
Other real estate owned	-	-
Total non-performing assets	$ 12,299	$ 9,060

Loans Modified And Considered Troubled Debt Restructurings



	September 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	$ 927	$ 927	8	$ 1,309	$ 1,309
Direct lease financing	1	260	260	1	286	286
Consumer	2	474	474	2	489	489
Total	11	$ 1,661	$ 1,661	11	$ 2,084	$ 2,084

Loans Modified As Troubled Debt Restructurings



	September 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	$ -	$ 23	$ 904	$ -	$ 51	$ 1,258
Direct lease financing	-	260	-	-	286	-
Consumer	-	-	474	-	-	489
Total	$ -	$ 283	$ 1,378	$ -	$ 337	$ 1,747

Effect Of The Adoption Of CECL


	December 31, 2019		January 1, 2020		September 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%	$ 4,801	1.64%
SBL commercial mortgage	1,458	0.71%	2,009	0.98%	3,552	1.31%
SBL construction	432	0.95%	571	1.26%	423	1.56%
Direct lease financing	2,426	0.56%	4,788	1.10%	5,847	1.35%
SBLOC	440	0.05%	440	0.05%	534	0.00%
IBLOC	113	0.08%	72	0.05%	180	0.00%
Advisor financing	-	0.00%	-	0.00%	199	0.75%
Other specialty lending (1)	97	0.39%	170	0.40%	148	6.75%
Consumer - other	40	0.88%	58	1.27%	43	1.13%
Unallocated	318		-		-	0.00%
	$ 10,238	0.56%	$ 12,874	0.71%	$ 15,727	0.63%

Liabilities:
Allowance for credit losses on off-balance sheet credit exposures	-		569		570
Total allowance for credit losses	$ 10,238		$ 13,443		$ 16,297

(1)Included in other speciality lending are $34.7 million of SBA loans purchased for CRA purposes as of September 30,2020. These loans are classified as SBL in our loan tables.

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


As of September 30, 2020	2020	2019	2018	2017	2016	Prior	Revolving loans at amortized cost	Total
SBL non real estate
Non-rated	$ 208,252	$ -	$ -	$ -	$ -	$ -	$ -	$ 208,252
Pass	7,018	9,541	12,557	6,745	7,654	10,916	-	54,431
Special mention	-	-	1,132	-	520	716	-	2,368
Substandard	-	43	20	693	1,324	1,662	-	3,742
Total SBL non-real estate	215,270	9,584	13,709	7,438	9,498	13,294	-	268,793

SBL commercial mortgage
Non-rated	9,681	2,938	-	-	-	-	-	12,619
Pass	17,611	64,628	48,134	39,773	32,808	36,011	-	238,965
Special mention	-	-	-	-	-	259	-	259
Substandard	-	-	-	-	76	7,441	-	7,517
Total SBL commercial mortgage	27,292	67,566	48,134	39,773	32,884	43,711	-	259,360

SBL construction
Non-rated	206	-	-	-	-	-	-	206
Pass	2,855	14,078	9,595	-	-	-	-	26,528
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	711	-	-	711
Total SBL construction	3,061	14,078	9,595	-	711	-	-	27,445

Direct lease financing
Non-rated	11,315	3,065	2,437	1,256	587	18	-	18,678
Pass	204,670	98,781	59,875	28,921	11,990	2,086	-	406,323
Special mention	-	-	-	-	8	-	-	8
Substandard	3,676	46	503	846	556	39	-	5,666
Total direct lease financing	219,661	101,892	62,815	31,023	13,141	2,143	-	430,675

SBLOC
Non-rated	-	-	-	-	-	-	7,897	7,897
Pass	-	-	-	-	-	-	1,064,990	1,064,990
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total SBLOC	-	-	-	-	-	-	1,072,887	1,072,887

IBLOC
Non-rated	-	-	-	-	-	-	97,017	97,017
Pass	-	-	-	-	-	-	262,340	262,340
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total IBLOC	-	-	-	-	-	-	359,357	359,357

Other specialty
Non-rated	2,537	-	-	-	-	-	-	2,537
Pass	116	3,484	6,368	7,042	7,083	12,817	-	36,910
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total other specialty	2,653	3,484	6,368	7,042	7,083	12,817	-	39,447

Advisor financing
Non-rated	11,717	-	-	-	-	-	-	11,717
Pass	15,269	-	-	-	-	-	-	15,269
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total advisor financing	26,986	-	-	-	-	-	-	26,986

Consumer
Non-rated	414	-	-	15	-	1,617	-	2,046
Pass	-	-	-	-	-	1,456	-	1,456
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	308	-	308
Total consumer	414	-	-	15	-	3,381	-	3,810
Total	$ 495,337	$ 196,604	$ 140,621	$ 85,291	$ 63,317	$ 75,346	$ 1,432,244	$ 2,488,760

Changes In Allowance For Loan And Lease Losses By Loan Category



	September 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	(1,350)	-	-	(2,178)	-	-	-	-	-	(3,528)
Recoveries	82	-	-	502	-	-	-	-	-	584
Provision (credit)	1,304	1,543	(148)	2,735	202	199	(22)	(17)	-	5,796
Ending balance	$ 4,801	$ 3,552	$ 423	$ 5,847	$ 714	$ 199	$ 148	$ 43	$ -	$ 15,727

Ending balance: Individually evaluated for expected credit loss	$ 1,818	$ 1,010	$ 26	$ 43	$ -	$ -	$ -	$ -	$ -	$ 2,897

Ending balance: Collectively evaluated for expected credit loss	$ 2,983	$ 2,542	$ 397	$ 5,804	$ 714	$ 199	$ 148	$ 43	$ -	$ 12,830

Loans:
Ending balance	$ 293,488	$ 270,264	$ 27,169	$ 430,675	$ 1,428,253	$ 26,600	$ 2,194	$ 3,809	$ 6,308	$ 2,488,760

Ending balance: Individually evaluated for expected credit loss	$ 3,220	$ 7,517	$ 711	$ 804	$ -	$ -	$ -	$ 567	$ -	$ 12,819

Ending balance: Collectively evaluated for expected credit loss	$ 290,268	$ 262,747	$ 26,458	$ 429,871	$ 1,428,253	$ 26,600	$ 2,194	$ 3,242	$ 6,308	$ 2,475,941



	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



	September 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	(995)	-	-	(391)	-	-	(3)	-	(1,389)
Recoveries	94	-	-	51	-	-	1	-	146
Provision (credit)	1,595	315	141	676	118	(48)	125	28	2,950
Ending balance	$ 5,330	$ 1,256	$ 391	$ 2,361	$ 511	$ 12	$ 231	$ 268	$ 10,360

Ending balance: Individually evaluated for impairment	$ 3,037	$ 71	$ 35	$ 136	$ -	$ -	$ 204	$ -	$ 3,483

Ending balance: Collectively evaluated for impairment	$ 2,293	$ 1,185	$ 356	$ 2,225	$ 511	$ 12	$ 27	$ 268	$ 6,877

Loans:
Ending balance	$ 84,181	$ 209,008	$ 38,116	$ 412,755	$ 920,463	$ 3,167	$ 6,388	$ 9,299	$ 1,683,377

Ending balance: Individually evaluated for impairment	$ 4,250	$ 458	$ 711	$ 424	$ -	$ -	$ 1,715	$ -	$ 7,558

Ending balance: Collectively evaluated for impairment	$ 79,931	$ 208,550	$ 37,405	$ 412,331	$ 920,463	$ 3,167	$ 4,673	$ 9,299	$ 1,675,819

Delinquent Loans By Loan Category



	September 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	$ 2,631	$ 440	-	$ 2,935	$ 6,006	$ 287,482	$ 293,488
SBL commercial mortgage	2,087	850	-	7,517	10,454	259,810	270,264
SBL construction	-	-	-	711	711	26,458	27,169
Direct lease financing	946	503	24	804	2,277	428,398	430,675
SBLOC / IBLOC	3,174	362	-	-	3,536	1,424,717	1,428,253
Advisor financing	-	-	-	-	-	26,600	26,600
Other specialty lending	-	-	-	-	-	2,194	2,194
Consumer - other	-	-	-	-	-	650	650
Consumer - home equity	-	-	-	308	308	2,851	3,159
Unamortized loan fees and costs	-	-	-	-	-	6,308	6,308
	$ 8,838	$ 2,155	$ 24	$ 12,275	$ 23,292	$ 2,465,468	$ 2,488,760

‎



	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 in the loans footnote and in this Form 10-Q in the Management’s Discussion and Analysis of Financial Condition and Results of Operations.