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Loans (Tables)

9 Months Ended

Sep. 30, 2021


	September 30,		December 31,
	2021		2020
SBL non-real estate	$	171,845	$	255,318
SBL commercial mortgage		367,272		300,817
SBL construction		23,117		20,273
Small business loans *		562,234		576,408
Direct lease financing		514,068		462,182
SBLOC / IBLOC **		1,834,523		1,550,086
Advisor financing ***		81,143		48,282
Real estate bridge lending		128,699		—
Other loans ****		4,917		6,426
		3,125,584		2,643,384
Unamortized loan fees and costs		11,078		8,939
Total loans, net of unamortized loan fees and costs	$	3,136,662	$	2,652,323


	September 30,		December 31,
	2021		2020
SBL loans, net of deferred costs of $4,238 and $1,536
for September 30, 2021 and December 31, 2020, respectively	$	566,472	$	577,944
SBL loans included in commercial loans, at fair value		214,301		243,562
Total small business loans	$	780,773	$	821,506

* The preceding table shows small business loans and small business loans held at fair value. The small business loans held at fair value are comprised of the government guaranteed portion of SBA 7a loans at the dates indicated. A reduction in SBL non-real estate loans from $229.0 million at June 30, 2021 to $171.8 million at September 30, 2021 resulted from U.S. government repayments of $58.2 million of Paycheck Protection Program (“PPP”) loans authorized by The Consolidated Appropriations Act, 2021. PPP loans totaled $71.3 million at September 30, 2021 and $165.7 million at December 31, 2020, respectively.

** 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, 2021 and December 31, 2020, respectively, IBLOC loans amounted to $686.8 million and $437.2 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 loans are demand deposit overdrafts reclassified as loan balances totaling $272,000 and $663,000 at September 30, 2021 and December 31, 2020, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.

Impaired Loans



	September 30, 2021
	Recorded ‎investment		Unpaid ‎principal ‎balance		Related ‎allowance		Average ‎recorded ‎investment		Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$	408	$	3,497	$	—	$	413	$	—
SBL commercial mortgage		2,183		2,206		—		2,091		—
Direct lease financing		289		289		—		474		—
Consumer - home equity		325		325		—		493		7
With an allowance recorded
SBL non-real estate		1,825		1,825		(1,163)		2,464		12
SBL commercial mortgage		984		984		(510)		3,145		—
SBL construction		711		711		(34)		711		—
Direct lease financing		141		141		(91)		165		—
Consumer - other		14		14		(14)		6		—
Total
SBL non-real estate		2,233		5,322		(1,163)		2,877		12
SBL commercial mortgage		3,167		3,190		(510)		5,236		—
SBL construction		711		711		(34)		711		—
Direct lease financing		430		430		(91)		639		—
Consumer - other		14		14		(14)		6		—
Consumer - home equity		325		325		—		493		7
	$	6,880	$	9,992	$	(1,812)	$	9,962	$	19



	December 31, 2020
	Recorded ‎investment		Unpaid ‎principal ‎balance		Related ‎allowance		Average ‎recorded ‎investment		Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$	387	$	2,836	$	—	$	370	$	3
SBL commercial mortgage		2,037		2,037		—		1,253		—
Direct lease financing		299		299		—		3,352		—
Consumer - home equity		557		557		—		554		10
With an allowance recorded
SBL non-real estate		3,044		3,044		(2,129)		3,257		15
SBL commercial mortgage		5,268		5,268		(1,010)		2,732		—
SBL construction		711		711		(34)		711		—
Direct lease financing		452		452		(4)		716		—
Consumer - home equity		—		—		—		24		—
Total
SBL non-real estate		3,431		5,880		(2,129)		3,627		18
SBL commercial mortgage		7,305		7,305		(1,010)		3,985		—
SBL construction		711		711		(34)		711		—
Direct lease financing		751		751		(4)		4,068		—
Consumer - home equity		557		557		—		578		10
	$	12,755	$	15,204	$	(3,177)	$	12,969	$	28

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


	September 30, 2021						December 31, 2020
	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	$	1,300	$	408	$	1,708	$	3,159
SBL commercial mortgage		984		2,183		3,167		7,305
SBL construction		711		—		711		711
Direct leasing		141		289		430		751
Consumer - home equity		—		76		76		301
Consumer - other		14		—		14		—
	$	3,150	$	2,956	$	6,106	$	12,227

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



	September 30,		December 31,
	2021		2020
	(in thousands)
Non-accrual loans
SBL non-real estate	$	1,708	$	3,159
SBL commercial mortgage		3,167		7,305
SBL construction		711		711
Direct leasing		430		751
Consumer - home equity		76		301
Consumer - other		14		—
Total non-accrual loans		6,106		12,227

Loans past due 90 days or more and still accruing		1,569		497
Total non-performing loans		7,675		12,724
Other real estate owned		2,145		—
Total non-performing assets	$	9,820	$	12,724

Loans Modified And Considered Troubled Debt Restructurings



	September 30, 2021						December 31, 2020
	Number		Pre-modification recorded investment		Post-modification recorded investment		Number		Pre-modification recorded investment		Post-modification recorded investment
SBL non-real estate		8	$	1,190	$	1,190		8	$	911	$	911
Direct lease financing		—		—		—		1		251		251
Consumer - home equity		1		249		249		2		469		469
Total(1)		9	$	1,439	$	1,439		11	$	1,631	$	1,631

Loans Modified As Troubled Debt Restructurings



	September 30, 2021						December 31, 2020
	Adjusted interest rate		Extended maturity		Combined rate and maturity		Adjusted interest rate		Extended maturity		Combined rate and maturity
SBL non-real estate	$	—	$	—	$	1,190	$	—	$	16	$	895
Direct lease financing		—		—		—		—		251		—
Consumer - home equity		—		—		249		—		—		469
Total(1)	$	—	$	—	$	1,439	$	—	$	267	$	1,364

Summary Of Restructured Loans Within The Last Twelve Months That Have Subsequently Defaulted


	September 30, 2021
	Number	Pre-modification recorded investment
SBL non-real estate	1	$	205
Total	1	$	205

Effect Of The Adoption Of CECL


	December 31, 2019				January 1, 2020				September 30, 2021
	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	$	4,985		5.89%	$	4,765		5.63%	$	5,378		3.13%
SBL commercial mortgage		1,472		0.67%		2,009		0.92%		2,795		0.76%
SBL construction		432		0.95%		571		1.26%		370		1.60%
Direct lease financing		2,426		0.56%		4,788		1.10%		5,637		1.10%
SBLOC		440		0.05%		440		0.05%		574		0.05%
IBLOC		113		0.08%		72		0.05%		343		0.05%
Advisor financing		—		—		—		—		609		0.75%
Real estate bridge lending		—		—		—		—		245		0.19%
Other loans (1)		52		0.68%		230		3.02%		208		4.23%
Unallocated		318				—				—
	$	10,238		0.56%	$	12,875		0.71%	$	16,159		0.52%

Liabilities:
Allowance for credit losses on off-balance sheet credit exposures		—				569				1,088
Total allowance for credit losses	$	10,238			$	13,444			$	17,247

(1)Included in Other loans are $25.0 million of SBA loans purchased for Community Reinvestment Act (“CRA”) purposes as of September 30, 2021. 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, 2021	2021		2020		2019		2018		2017		Prior		Revolving loans at amortized cost		Total
SBL non real estate
Non-rated*	$	66,244	$	8,844	$	—	$	—	$	—	$	—	$	—	$	75,088
Pass		21,814		17,432		9,180		9,563		5,534		12,934		—		76,457
Special mention		79		—		—		687		—		873		—		1,639
Substandard		—		—		—		18		574		1,282		—		1,874
Total SBL non-real estate		88,137		26,276		9,180		10,268		6,108		15,089		—		155,058

SBL commercial mortgage
Non-rated		9,707		—		4,500		—		—		—		—		14,207
Pass		62,268		55,850		77,930		46,916		38,465		58,177		—		339,606
Special mention		—		—		1,853		—		—		249		—		2,102
Substandard		—		—		—		—		—		3,167		—		3,167
Total SBL commercial mortgage		71,975		55,850		84,283		46,916		38,465		61,593		—		359,082

SBL construction
Pass		3,194		13,958		1,411		3,844		—		—		—		22,407
Substandard		—		—		—		—		—		711		—		711
Total SBL construction		3,194		13,958		1,411		3,844		—		711		—		23,118

Direct lease financing
Non-rated		44,973		14,486		2,088		1,291		474		126		—		63,438
Pass		168,932		166,215		65,411		32,392		11,573		2,956		—		447,479
Substandard		792		2,170		39		58		78		14		—		3,151
Total direct lease financing		214,697		182,871		67,538		33,741		12,125		3,096		—		514,068

SBLOC
Non-rated		—		—		—		—		—		—		4,465		4,465
Pass		—		—		—		—		—		—		1,143,291		1,143,291
Total SBLOC		—		—		—		—		—		—		1,147,756		1,147,756

IBLOC
Non-rated		—		—		—		—		—		—		277,567		277,567
Pass		—		—		—		—		—		—		409,200		409,200
Total IBLOC		—		—		—		—		—		—		686,767		686,767

Advisor financing
Non-rated		1,847		264		—		—		—		—		—		2,111
Pass		34,452		44,580		—		—		—		—		—		79,032
Total advisor financing		36,299		44,844		—		—		—		—		—		81,143

Real estate bridge lending
Pass		128,699		—		—		—		—		—		—		128,699
Total real estate bridge lending		128,699		—		—		—		—		—		—		128,699

Other loans
Non-rated		428		184		—		—		4		217		677		1,510
Pass		101		114		3,323		4,820		5,632		12,977		1,278		28,245
Substandard		—		14		—		—		48		—		76		138
Total other loans**		529		312		3,323		4,820		5,684		13,194		2,031		29,893

	$	543,530	$	324,111	$	165,735	$	99,589	$	62,382	$	93,683	$	1,836,554	$	3,125,584

Unamortized loan fees and costs		—		—		—		—		—		—		—		11,078
Total															$	3,136,662

*Included in the SBL non real estate non-rated total of $75.1 million, were $71.3 million of PPP loans which are government guaranteed.

**Included in Other loans are $25.0 million of SBA loans purchased for CRA purposes as of September 30, 2021. These loans are classified as SBL in the Company’s loan table which classify loans by type, as opposed to risk characteristics.


As of December 31, 2020	2020		2019		2018		2017		2016		Prior		Revolving loans at amortized cost		Total
SBL non real estate
Non-rated*	$	170,910	$	—	$	—	$	—	$	—	$	—	$	—	$	170,910
Pass		10,775		10,943		12,002		5,454		7,153		9,964		—		56,291
Special mention		—		—		731		—		499		767		—		1,997
Substandard		—		—		20		1,489		1,347		1,491		—		4,347
Total SBL non-real estate		181,685		10,943		12,753		6,943		8,999		12,222		—		233,545

SBL commercial mortgage
Non-rated		17,592		2,758		—		—		—		—		—		20,350
Pass		26,971		76,975		46,099		39,219		32,505		35,298		—		257,067
Special mention		—		1,852		—		—		—		257		—		2,109
Substandard		—		—		—		—		77		7,605		—		7,682
Total SBL commercial mortgage		44,563		81,585		46,099		39,219		32,582		43,160		—		287,208

SBL construction
Non-rated		566		—		—		—		—		—		—		566
Pass		6,769		1,146		11,081		—		—		—		—		18,996
Substandard		—		—		—		—		711		—		—		711
Total SBL construction		7,335		1,146		11,081		—		711		—		—		20,273
		.
Direct lease financing
Non-rated		23,273		2,888		2,189		1,093		447		7		—		29,897
Pass		249,946		90,156		53,638		23,944		9,091		1,106		—		427,881
Substandard		3,536		45		97		152		536		38		—		4,404
Total direct lease financing		276,755		93,089		55,924		25,189		10,074		1,151		—		462,182

SBLOC
Non-rated		—		—		—		—		—		—		3,772		3,772
Pass		—		—		—		—		—		—		1,109,161		1,109,161
Total SBLOC		—		—		—		—		—		—		1,112,933		1,112,933

IBLOC
Non-rated		—		—		—		—		—		—		132,777		132,777
Pass		—		—		—		—		—		—		304,376		304,376
Total IBLOC		—		—		—		—		—		—		437,153		437,153

Advisor financing
Non-rated		22,341		—		—		—		—		—		—		22,341
Pass		25,941		—		—		—		—		—		—		25,941
Total advisor financing		48,282		—		—		—		—		—		—		48,282

Other loans
Non-rated		1,221		—		—		14		—		1,558		—		2,793
Pass		376		3,569		6,225		7,320		7,228		13,996		—		38,714
Substandard		—		—		—		—		—		301		—		301
Total other loans**		1,597		3,569		6,225		7,334		7,228		15,855		—		41,808

Total	$	560,217	$	190,332	$	132,082	$	78,685	$	59,594	$	72,388	$	1,550,086	$	2,643,384

Unamortized loan fees and costs		—		—		—		—		—		—		—		8,939
Total															$	2,652,323

*Included in the SBL non real estate non-rated total of $170.9 million, were $165.7 million of PPP loans which are government guaranteed.

**Included in Other loans are $35.4 million of SBA loans purchased for CRA purposes as of December 31, 2020. These loans are classified as SBL in the Company’s loan table which classify loans by type, as opposed to risk characteristics.

Changes In Allowance For Loan And Lease Losses By Loan Category



	September 30, 2021
	SBL non-real estate		SBL commercial mortgage		SBL construction		Direct lease financing		SBLOC / IBLOC		Advisor financing		Real estate bridge lending		Other loans		Unallocated		Total
Beginning 1/1/2021	$	5,060	$	3,315	$	328	$	6,043	$	775	$	362	$	—	$	199	$	—	$	16,082
Charge-offs		(896)		(23)		—		(248)		(15)		—		—		(10)		—		(1,192)
Recoveries		18		9		—		50		—		—		—		—		—		77
Provision (credit)*		1,196		(506)		42		(208)		157		247		245		19		—		1,192
Ending balance	$	5,378	$	2,795	$	370	$	5,637	$	917	$	609	$	245	$	208	$	—	$	16,159

Ending balance: Individually evaluated for expected credit loss	$	1,163	$	510	$	34	$	91	$	—	$	—	$	—	$	14	$	—	$	1,812

Ending balance: Collectively evaluated for expected credit loss	$	4,215	$	2,285	$	336	$	5,546	$	917	$	609	$	245	$	194	$	—	$	14,347

Loans:
Ending balance**	$	171,845	$	367,272	$	23,117	$	514,068	$	1,834,523	$	81,143	$	128,699	$	4,917	$	11,078	$	3,136,662

Ending balance: Individually evaluated for expected credit loss	$	2,233	$	3,167	$	711	$	430	$	—	$	—	$	—	$	339	$	—	$	6,880

Ending balance: Collectively evaluated for expected credit loss	$	169,612	$	364,105	$	22,406	$	513,638	$	1,834,523	$	81,143	$	128,699	$	4,578	$	11,078	$	3,129,782


	December 31, 2020
	SBL non-real estate		SBL commercial mortgage		SBL construction		Direct lease financing		SBLOC / IBLOC		Advisor financing		Other loans		Unallocated		Total
Beginning 12/31/2019	$	4,985	$	1,472	$	432	$	2,426	$	553	$	—	$	52	$	318	$	10,238
1/1 CECL adjustment		(220)		537		139		2,362		(41)		—		178		(318)		2,637
Charge-offs		(1,350)		—		—		(2,243)		—		—		—		—		(3,593)
Recoveries		103		—		—		570		—		—		—		—		673
Provision (credit)*		1,542		1,306		(243)		2,928		263		362		(31)		—		6,127
Ending balance	$	5,060	$	3,315	$	328	$	6,043	$	775	$	362	$	199	$	—	$	16,082

Ending balance: Individually evaluated for expected credit loss	$	2,129	$	1,010	$	34	$	4	$	—	$	—	$	—	$	—	$	3,177

Ending balance: Collectively evaluated for expected credit loss	$	2,931	$	2,305	$	294	$	6,039	$	775	$	362	$	199	$	—	$	12,905

Loans:
Ending balance**	$	255,318	$	300,817	$	20,273	$	462,182	$	1,550,086	$	48,282	$	6,426	$	8,939	$	2,652,323

Ending balance: Individually evaluated for expected credit loss	$	3,431	$	7,305	$	711	$	751	$	—	$	—	$	557	$	—	$	12,755

Ending balance: Collectively evaluated for expected credit loss	$	251,887	$	293,512	$	19,562	$	461,431	$	1,550,086	$	48,282	$	5,869	$	8,939	$	2,639,568



	September 30, 2020
	SBL non-real estate		SBL commercial mortgage		SBL construction		Direct lease financing		SBLOC / IBLOC		Advisor financing		Other loans		Unallocated		Total
Beginning 12/31/2019	$	4,985	$	1,472	$	432	$	2,426	$	553	$	—	$	52		318	$	10,238
1/1 CECL adjustment		(220)		537		139		2,362		(41)		—		178		(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		(39)		—		5,796
Ending balance	$	4,801	$	3,552	$	423	$	5,847	$	714	$	199	$	191		—	$	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	$	191	$	—	$	12,830

Loans:
Ending balance**	$	293,488	$	270,264	$	27,169	$	430,675	$	1,428,253	$	26,600	$	6,003	$	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	$	5,436	$	6,308	$	2,475,941

*The amount shown as the provision for the period, reflects the provision on credit losses for loans, while the income statement provision for credit losses includes the provision for unfunded commitments.

** The ending balance for loans in the unallocated column represents deferred costs and fees.

Delinquent Loans By Loan Category



	September 30, 2021
	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	$	1,622	$	848	$	1,085	$	1,708	$	5,263	$	166,582	$	171,845
SBL commercial mortgage		17		208		417		3,167		3,809		363,463		367,272
SBL construction		—		—		—		711		711		22,406		23,117
Direct lease financing		994		211		67		430		1,702		512,366		514,068
SBLOC / IBLOC		1,389		—		—		—		1,389		1,833,134		1,834,523
Advisor financing		—		—		—		—		—		81,143		81,143
Real estate bridge lending		—		—		—		—		—		128,699		128,699
Other loans		—		—		—		90		90		4,827		4,917
Unamortized loan fees and costs		—		—		—		—		—		11,078		11,078
	$	4,022	$	1,267	$	1,569	$	6,106	$	12,964	$	3,123,698	$	3,136,662



	December 31, 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	$	1,760	$	805	$	110	$	3,159	$	5,834	$	249,484	$	255,318
SBL commercial mortgage		87		961		—		7,305		8,353		292,464		300,817
SBL construction		—		—		—		711		711		19,562		20,273
Direct lease financing		2,845		941		78		751		4,615		457,567		462,182
SBLOC / IBLOC		650		247		309		—		1,206		1,548,880		1,550,086
Advisor financing		—		—		—		—		—		48,282		48,282
Other loans		—		—		—		301		301		6,125		6,426
Unamortized loan fees and costs		—		—		—		—		—		8,939		8,939
	$	5,342	$	2,954	$	497	$	12,227	$	21,020	$	2,631,303	$	2,652,323

Scheduled Maturities Of Direct Financing Leases


Remaining 2021	$	47,882
2022		146,333
2023		111,954
2024		69,895
2025		34,726
2026 and thereafter		12,823
Total undiscounted cash flows		423,613
Residual value *		142,558
Difference between undiscounted cash flows and discounted cash flows		(52,103)
Present value of lease payments recorded as lease receivables	$	514,068

*Of the $142,558,000, $31,122,000 is not guaranteed by the lessee or other guarantors.