Loans (Tables)

3 Months Ended

Mar. 31, 2022


	March 31,		December 31,
	2022		2021
SBL non-real estate	$	122,387	$	147,722
SBL commercial mortgage		385,559		361,171
SBL construction		31,432		27,199
Small business loans		539,378		536,092
Direct lease financing		538,616		531,012
SBLOC / IBLOC *		2,067,233		1,929,581
Advisor financing **		146,461		115,770
Real estate bridge loans		803,477		621,702
Other loans ***		61,096		5,014
		4,156,261		3,739,171
Unamortized loan fees and costs		8,037		8,053
Total loans, including unamortized loan fees and costs	$	4,164,298	$	3,747,224


	March 31,		December 31,
	2022		2021
SBL loans, including costs net of deferred fees of $6,084 and $5,345
for March 31, 2022 and December 31, 2021, respectively	$	545,462	$	541,437
SBL loans included in commercial loans, at fair value		183,408		199,585
Total small business loans ****	$	728,870	$	741,022

* 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 March 31, 2022 and December 31, 2021, respectively, IBLOC loans amounted to $907.1 million and $788.3 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.

*** Includes demand deposit overdrafts reclassified as loan balances totaling $310,000 and $322,000 at March 31, 2022 and December 31, 2021, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.

**** 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 from $147.7 million to $122.4 million in the first quarter of 2022 resulted from U.S. government repayments of $21.1 million of Paycheck Protection Program

(“PPP”) loans authorized by The Consolidated Appropriations Act, 2021. PPP loans totaled $23.7 million at March 31, 2022 and $44.8 million at December 31, 2021, respectively.

Impaired Loans



	March 31, 2022
	Recorded ‎investment		Unpaid ‎principal ‎balance		Related ‎allowance		Average ‎recorded ‎investment		Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$	529	$	3,278	$	—	$	469	$	2
SBL commercial mortgage		—		—		—		111		—
Direct lease financing		8		8		—		131		—
Other loans		4,171		4,171		—		4,171		29
Consumer - home equity		312		312		—		316		3
With an allowance recorded
SBL non-real estate		1,817		1,817		(1,338)		1,648		10
SBL commercial mortgage		589		589		(116)		589		—
SBL construction		710		710		(34)		710		—
Total
SBL non-real estate		2,346		5,095		(1,338)		2,117		12
SBL commercial mortgage		589		589		(116)		700		—
SBL construction		710		710		(34)		710		—
Direct lease financing		8		8		—		131		—
Other loans		4,171		4,171		—		4,171		29
Consumer - home equity		312		312		—		316		3
	$	8,136	$	10,885	$	(1,488)	$	8,145	$	44



	December 31, 2021
	Recorded ‎investment		Unpaid ‎principal ‎balance		Related ‎allowance		Average ‎recorded ‎investment		Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$	409	$	3,414	$	—	$	412	$	5
SBL commercial mortgage		223		246		—		1,717		—
Direct lease financing		254		254		—		430		—
Consumer - home equity		320		320		—		458		8
With an allowance recorded
SBL non-real estate		1,478		1,478		(829)		2,267		13
SBL commercial mortgage		589		589		(115)		2,634		—
SBL construction		710		710		(34)		711		—
Direct lease financing		—		—		—		132		—
Consumer - other		—		—		—		5		—
Total
SBL non-real estate		1,887		4,892		(829)		2,679		18
SBL commercial mortgage		812		835		(115)		4,351		—
SBL construction		710		710		(34)		711		—
Direct lease financing		254		254		—		562		—
Consumer - other		—		—		—		5		—
Consumer - home equity		320		320		—		458		8
	$	3,983	$	7,011	$	(978)	$	8,766	$	26

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


	March 31, 2022						December 31, 2021
	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	$	1,251	$	388	$	1,639	$	1,313
SBL commercial mortgage		589		—		589		812
SBL construction		710		—		710		710
Direct leasing		—		8		8		254
Consumer - home equity		—		68		68		72
Other loans		—		607		607		—
	$	2,550	$	1,071	$	3,621	$	3,161

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



	March 31,		December 31,
	2022		2021
	(in thousands)
Non-accrual loans
SBL non-real estate	$	1,639	$	1,313
SBL commercial mortgage		589		812
SBL construction		710		710
Direct leasing		8		254
Other loans		607		—
Consumer - home equity		68		72
Total non-accrual loans		3,621		3,161

Loans past due 90 days or more and still accruing		4,597		461
Total non-performing loans		8,218		3,622
Other real estate owned		18,873		18,873
Total non-performing assets	$	27,091	$	22,495

Loans Modified And Considered Troubled Debt Restructurings



	March 31, 2022						December 31, 2021
	Number		Pre-modification recorded investment		Post-modification recorded investment		Number		Pre-modification recorded investment		Post-modification recorded investment
SBL non-real estate		12	$	1,451	$	1,451		9	$	1,231	$	1,231
Other loans		1		3,564		3,564		—		—		—
Consumer - home equity		1		245		245		1		248		248
Total⁽¹⁾		14	$	5,260	$	5,260		10	$	1,479	$	1,479

Loans Modified As Troubled Debt Restructurings



	March 31, 2022						December 31, 2021
	Adjusted interest rate		Extended maturity		Combined rate and maturity		Adjusted interest rate		Extended maturity		Combined rate and maturity
SBL non-real estate	$	—	$	—	$	1,451	$	—	$	—	$	1,231
Other loans		—		—		3,564		—		—		—
Consumer - home equity		—		—		245		—		—		248
Total⁽¹⁾	$	—	$	—	$	5,260	$	—	$	—	$	1,479

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


	March 31, 2022
	Number	Pre-modification recorded investment
SBL non-real estate	1	$	334
Total	1	$	334

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


As of March 31, 2022	2022		2021		2020		2019		2018		Prior		Revolving loans at amortized cost		Total
SBL non real estate
Non-rated*	$	—	$	20,020	$	3,626	$	—	$	—	$	—	$	—	$	23,646
Pass		1,526		33,779		15,256		8,242		8,505		12,974		—		80,282
Special mention		—		—		—		99		645		491		—		1,235
Substandard		—		—		246		—		134		3,477		—		3,857
Total SBL non-real estate		1,526		53,799		19,128		8,341		9,284		16,942		—		109,020

SBL commercial mortgage
Non-rated		15,426		2,091		—		—		—		—		—		17,517
Pass		12,224		91,308		56,969		74,628		43,139		80,528		—		358,796
Special mention		—		—		141		1,853		—		464		—		2,458
Substandard		—		—		—		—		—		589		—		589
Total SBL commercial mortgage		27,650		93,399		57,110		76,481		43,139		81,581		—		379,360

SBL construction
Pass		—		9,119		14,183		2,000		5,419		—		—		30,721
Substandard		—		—		—		—		—		710		—		710
Total SBL construction		—		9,119		14,183		2,000		5,419		710		—		31,431

Direct lease financing
Non-rated		43,382		41,790		11,682		1,717		877		329		—		99,777
Pass		54,636		178,087		124,279		50,899		21,301		7,929		—		437,131
Special mention		8		—		—		—		12		35		—		55
Substandard		432		266		942		—		8		5		—		1,653
Total direct lease financing		98,458		220,143		136,903		52,616		22,198		8,298		—		538,616

SBLOC
Non-rated		—		—		—		—		—		—		3,724		3,724
Pass		—		—		—		—		—		—		1,156,417		1,156,417
Total SBLOC		—		—		—		—		—		—		1,160,141		1,160,141

IBLOC
Non-rated		—		—		—		—		—		—		412,878		412,878
Pass		—		—		—		—		—		—		494,214		494,214
Total IBLOC		—		—		—		—		—		—		907,092		907,092

Advisor financing
Non-rated		23,156		969		—		—		—		—		—		24,125
Pass		10,413		69,728		42,195		—		—		—		—		122,336
Total advisor financing		33,569		70,697		42,195		—		—		—		—		146,461

Real estate bridge loans
Pass		179,070		624,407		—		—		—		—		—		803,477
Total real estate bridge loans		179,070		624,407		—		—		—		—		—		803,477

Other loans
Non-rated		478		63		118		—		—		14,611		601		15,871
Pass		—		371		113		2,895		4,253		51,717		1,204		60,553
Special mention		—		—		—		—		—		3,564		—		3,564
Substandard		—		—		—		—		—		607		68		675
Total other loans**		478		434		231		2,895		4,253		70,499		1,873		80,663

	$	340,329	$	1,072,420	$	269,750	$	142,333	$	84,293	$	178,030	$	2,069,106	$	4,156,261

Unamortized loan fees and costs		—		—		—		—		—		—		—		8,037
Total															$	4,164,298

*The SBL non real estate non-rated total of $23.6 million is substantially all comprised of PPP loans which are government guaranteed.

**Included in Other loans are $19.6 million of SBA loans purchased for Community Reinvestment Act (“CRA”) purposes as of March 31, 2022. 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, 2021	2021		2020		2019		2018		2017		Prior		Revolving loans at amortized cost		Total
SBL non real estate
Non-rated*	$	39,318	$	7,257	$	—	$	—	$	—	$	—	$	—	$	46,575
Pass		34,172		15,934		8,794		8,988		5,088		9,809		—		82,785
Special mention		—		—		99		666		—		859		—		1,624
Substandard		—		—		—		18		848		895		—		1,761
Total SBL non-real estate		73,490		23,191		8,893		9,672		5,936		11,563		—		132,745

SBL commercial mortgage
Non-rated		10,963		—		—		—		—		—		—		10,963
Pass		79,166		57,554		75,290		43,820		37,607		46,016		—		339,453
Special mention		—		141		1,853		—		—		247		—		2,241
Substandard		—		—		—		—		—		812		—		812
Total SBL commercial mortgage		90,129		57,695		77,143		43,820		37,607		47,075		—		353,469

SBL construction
Pass		6,869		12,629		1,880		5,111		—		—		—		26,489
Substandard		—		—		—		—		—		710		—		710
Total SBL construction		6,869		12,629		1,880		5,111		—		710		—		27,199
		.
Direct lease financing
Non-rated		56,152		13,271		1,933		1,115		355		104		—		72,930
Pass		214,780		145,256		58,337		26,662		8,574		2,105		—		455,714
Special mention		—		—		—		22		38		—		—		60
Substandard		526		1,679		38		22		31		12		—		2,308
Total direct lease financing		271,458		160,206		60,308		27,821		8,998		2,221		—		531,012

SBLOC
Non-rated		—		—		—		—		—		—		3,176		3,176
Pass		—		—		—		—		—		—		1,138,140		1,138,140
Total SBLOC		—		—		—		—		—		—		1,141,316		1,141,316

IBLOC
Non-rated		—		—		—		—		—		—		346,604		346,604
Pass		—		—		—		—		—		—		441,661		441,661
Total IBLOC		—		—		—		—		—		—		788,265		788,265

Advisor financing
Non-rated		38,330		258		—		—		—		—		—		38,588
Pass		33,776		43,406		—		—		—		—		—		77,182
Total advisor financing		72,106		43,664		—		—		—		—		—		115,770

Real estate bridge loans
Pass		621,702		—		—		—		—		—		—		621,702
Total real estate bridge loans		621,702		—		—		—		—		—		—		621,702

Other loans
Non-rated		396		152		—		—		—		216		656		1,420
Pass		373		113		3,081		4,553		5,212		11,604		1,264		26,200
Substandard		—		—		—		—		—		—		73		73
Total other loans**		769		265		3,081		4,553		5,212		11,820		1,993		27,693

Total	$	1,136,523	$	297,650	$	151,305	$	90,977	$	57,753	$	73,389	$	1,931,574	$	3,739,171

Unamortized loan fees and costs		—		—		—		—		—		—		—		8,053
Total															$	3,747,224

*Included in the SBL non real estate non-rated total of $46.6 million, were $44.8 million of PPP loans which are government guaranteed.

**Included in Other loans are $22.7 million of SBA loans purchased for CRA purposes as of December 31, 2021. 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



	March 31, 2022
	SBL non-real estate		SBL commercial mortgage		SBL construction		Direct lease financing		SBLOC / IBLOC		Advisor financing		Real estate bridge loans		Other loans		Unallocated**		Total
Beginning 1/1/2022	$	5,415	$	2,952	$	432	$	5,817	$	964	$	868	$	1,181	$	177	$	—	$	17,806
Charge-offs		(98)		—		—		(191)		—		—		—		—		—		(289)
Recoveries		12		—		—		19		—		—		—		—		—		31
Provision (credit)*		323		176		63		319		70		230		346		(24)		—		1,503
Ending balance	$	5,652	$	3,128	$	495	$	5,964	$	1,034	$	1,098	$	1,527	$	153	$	—	$	19,051

Ending balance: Individually evaluated for expected credit loss	$	1,338	$	116	$	34	$	—	$	—	$	—	$	—	$	—	$	—	$	1,488

Ending balance: Collectively evaluated for expected credit loss	$	4,314	$	3,012	$	461	$	5,964	$	1,034	$	1,098	$	1,527	$	153	$	—	$	17,563

Loans:
Ending balance**	$	122,387	$	385,559	$	31,432	$	538,616	$	2,067,233	$	146,461	$	803,477	$	61,096	$	8,037	$	4,164,298

Ending balance: Individually evaluated for expected credit loss	$	2,346	$	589	$	710	$	8	$	—	$	—	$	—	$	4,483	$	—	$	8,136

Ending balance: Collectively evaluated for expected credit loss	$	120,041	$	384,970	$	30,722	$	538,608	$	2,067,233	$	146,461	$	803,477	$	56,613	$	8,037	$	4,156,162


	December 31, 2021
	SBL non-real estate		SBL commercial mortgage		SBL construction		Direct lease financing		SBLOC / IBLOC		Advisor financing		Real estate bridge loans		Other loans		Unallocated**		Total
Beginning balance 1/1/2021	$	5,060	$	3,315	$	328	$	6,043	$	775	$	362	$	—	$	199	$	—	$	16,082
Charge-offs		(1,138)		(417)		—		(412)		(15)		—		—		(24)		—		(2,006)
Recoveries		51		9		—		58		—		—		—		1,099		—		1,217
Provision (credit)*		1,442		45		104		128		204		506		1,181		(1,097)		—		2,513
Ending balance	$	5,415	$	2,952	$	432	$	5,817	$	964	$	868	$	1,181	$	177	$	—	$	17,806

Ending balance: Individually evaluated for expected credit loss	$	829	$	115	$	34	$	—	$	—	$	—	$	—	$	—	$	—	$	978

Ending balance: Collectively evaluated for expected credit loss	$	4,586	$	2,837	$	398	$	5,817	$	964	$	868	$	1,181	$	177	$	—	$	16,828

Loans:
Ending balance**	$	147,722	$	361,171	$	27,199	$	531,012	$	1,929,581	$	115,770	$	621,702	$	5,014	$	8,053	$	3,747,224

Ending balance: Individually evaluated for expected credit loss	$	1,887	$	812	$	710	$	254	$	—	$	—	$	—	$	320	$	—	$	3,983

Ending balance: Collectively evaluated for expected credit loss	$	145,835	$	360,359	$	26,489	$	530,758	$	1,929,581	$	115,770	$	621,702	$	4,694	$	8,053	$	3,743,241



	March 31, 2021
	SBL non-real estate		SBL commercial mortgage		SBL construction		Direct lease financing		SBLOC / IBLOC		Advisor financing		Other loans		Unallocated**		Total
Beginning 1/1/2021	$	5,060	$	3,315	$	328	$	6,043	$	775	$	362	$	199		—	$	16,082
Charge-offs		(144)		—		—		(97)		(15)		—		—		—		(256)
Recoveries		4		—		—		2		—		—		—		—		6
Provision (credit)*		330		176		6		(163)		51		80		107		—		587
Ending balance	$	5,250	$	3,491	$	334	$	5,785	$	811	$	442	$	306		—	$	16,419

Ending balance: Individually evaluated for expected credit loss	$	1,871	$	1,027	$	34	$	29	$	—	$	—	$	—	$	—	$	2,961

Ending balance: Collectively evaluated for expected credit loss	$	3,379	$	2,464	$	300	$	5,756	$	811	$	442	$	306	$	—	$	13,458

Loans:
Ending balance**	$	305,446	$	320,013	$	20,692	$	484,316	$	1,622,359	$	58,919	$	6,452	$	8,879	$	2,827,076

Ending balance: Individually evaluated for expected credit loss	$	3,115	$	7,305	$	711	$	738	$	—	$	—	$	550	$	—	$	12,419

Ending balance: Collectively evaluated for expected credit loss	$	302,331	$	312,708	$	19,981	$	483,578	$	1,622,359	$	58,919	$	5,902	$	8,879	$	2,814,657

*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 of $4,000 and $235,000 for the three months ended March 31, 2022 and March 31, 2021, respectively. The income statement provision for credit losses includes the provision for unfunded commitments of $597,000 for the year ended December 31, 2021.

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

Delinquent Loans By Loan Category



	March 31, 2022
	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	$	2,551	$	1,135	$	420	$	1,639	$	5,745	$	116,642	$	122,387
SBL commercial mortgage		283		215		—		589		1,087		384,472		385,559
SBL construction		—		—		—		710		710		30,722		31,432
Direct lease financing		734		652		613		8		2,007		536,609		538,616
SBLOC / IBLOC		1,706		—		—		—		1,706		2,065,527		2,067,233
Advisor financing		—		—		—		—		—		146,461		146,461
Real estate bridge loans		—		—		—		—		—		803,477		803,477
Other loans		274		—		3,564		675		4,513		56,583		61,096
Unamortized loan fees and costs		—		—		—		—		—		8,037		8,037
	$	5,548	$	2,002	$	4,597	$	3,621	$	15,768	$	4,148,530	$	4,164,298



	December 31, 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	$	1,375	$	3,138	$	441	$	1,313	$	6,267	$	141,455	$	147,722
SBL commercial mortgage		—		220		—		812		1,032		360,139		361,171
SBL construction		—		—		—		710		710		26,489		27,199
Direct lease financing		1,833		692		20		254		2,799		528,213		531,012
SBLOC / IBLOC		5,985		289		—		—		6,274		1,923,307		1,929,581
Advisor financing		—		—		—		—		—		115,770		115,770
Real estate bridge loans		—		—		—		—		—		621,702		621,702
Other loans		—		—		—		72		72		4,942		5,014
Unamortized loan fees and costs		—		—		—		—		—		8,053		8,053
	$	9,193	$	4,339	$	461	$	3,161	$	17,154	$	3,730,070	$	3,747,224

Scheduled Maturities Of Direct Financing Leases


Remaining 2022	$	125,319
2023		126,635
2024		105,958
2025		53,809
2026		25,044
2027 and thereafter		6,311
Total undiscounted cash flows		443,076
Residual value *		149,653
Difference between undiscounted cash flows and discounted cash flows		(54,113)
Present value of lease payments recorded as lease receivables	$	538,616

*Of the $149,653,000, $30,472,000 is not guaranteed by the lessee or other guarantors.