Loans (Tables)

6 Months Ended

Jun. 30, 2022

Loans [Abstract]

Major Classifications Of Loans

	June 30,		December 31,
	2022		2021
SBL non-real estate	$	112,854	$	147,722
SBL commercial mortgage		425,219		361,171
SBL construction		27,042		27,199
Small business loans		565,115		536,092
Direct lease financing		583,086		531,012
SBLOC / IBLOC *		2,274,256		1,929,581
Advisor financing **		155,235		115,770
Real estate bridge loans		1,106,875		621,702
Other loans ***		63,514		5,014
		4,748,081		3,739,171
Unamortized loan fees and costs		6,616		8,053
Total loans, including unamortized loan fees and costs	$	4,754,697	$	3,747,224

	June 30,		December 31,
	2022		2021
SBL loans, including costs net of deferred fees of $6,444 and $5,345
for June 30, 2022 and December 31, 2021, respectively	$	571,559	$	541,437
SBL loans included in commercial loans, at fair value		168,579		199,585
Total small business loans ****	$	740,138	$	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 June 30, 2022 and December 31, 2021, respectively, IBLOC loans amounted to $1.02 billion 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 $170,000 and $322,000 at June 30, 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 $122.4 million to $112.9 million in the second quarter of 2022 resulted primarily from U.S. government repayments of Paycheck Protection Program (“PPP”) loans authorized by The Consolidated Appropriations Act, 2021. PPP loans totaled $10.3 million at June 30, 2022 and $23.7 million at March 31, 2022, respectively.

Impaired Loans

	June 30, 2022
	Recorded ‎investment		Unpaid ‎principal ‎balance		Related ‎allowance		Average ‎recorded ‎investment		Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$	244	$	3,700	$	—	$	394	$	4
SBL commercial mortgage		—		—		—		75		—
Direct lease financing		—		—		—		87		—
Consumer - home equity		307		307		—		313		4
With an allowance recorded
SBL non-real estate		926		926		(593)		1,407		5
SBL commercial mortgage		1,423		1,423		(365)		867		—
SBL construction		710		710		(34)		710		—
Other loans		4,159		4,159		(31)		4,159		52
Total
SBL non-real estate		1,170		4,626		(593)		1,801		9
SBL commercial mortgage		1,423		1,423		(365)		942		—
SBL construction		710		710		(34)		710		—
Direct lease financing		—		—		—		87		—
Other loans		4,159		4,159		(31)		4,159		52
Consumer - home equity		307		307		—		313		4
	$	7,769	$	11,225	$	(1,023)	$	8,012	$	65

	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

	June 30, 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	$	792	$	103	$	895	$	1,313
SBL commercial mortgage		1,423		—		1,423		812
SBL construction		710		—		710		710
Direct leasing		—		—		—		254
Consumer - home equity		—		63		63		72
Other loans		607		—		607		—
	$	3,532	$	166	$	3,698	$	3,161

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

	June 30,		December 31,
	2022		2021
	(in thousands)
Non-accrual loans
SBL non-real estate	$	895	$	1,313
SBL commercial mortgage		1,423		812
SBL construction		710		710
Direct leasing		—		254
Other loans		607		—
Consumer - home equity		63		72
Total non-accrual loans		3,698		3,161
Loans past due 90 days or more and still accruing		4,848		461
Total non-performing loans		8,546		3,622
Other real estate owned		18,873		18,873
Total non-performing assets	$	27,419	$	22,495

Loans Modified And Considered Troubled Debt Restructurings

	June 30, 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		9	$	665	$	665		9	$	1,231	$	1,231
SBL commercial mortgage		1		835		835		—		—		—
Other loans		1		3,552		3,552		—		—		—
Consumer - home equity		1		244		244		1		248		248
Total(1)		12	$	5,296	$	5,296		10	$	1,479	$	1,479

Loans Modified As Troubled Debt Restructurings

	June 30, 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	$	—	$	—	$	665	$	—	$	—	$	1,231
SBL commercial mortgage		—		—		835		—		—		—
Other loans		—		—		3,552		—		—		—
Consumer - home equity		—		—		244		—		—		248
Total(1)	$	—	$	—	$	5,296	$	—	$	—	$	1,479

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

	June 30, 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 June 30, 2022	2022		2021		2020		2019		2018		Prior		Revolving loans at amortized cost		Total
SBL non real estate
Non-rated*	$	2,393	$	11,696	$	340	$	—	$	—	$	—	$	—	$	14,429
Pass		11,600		30,975		14,783		7,802		8,092		10,543		—		83,795
Special mention		—		—		—		—		624		474		—		1,098
Substandard		—		—		336		190		1		645		—		1,172
Total SBL non-real estate		13,993		42,671		15,459		7,992		8,717		11,662		—		100,494
SBL commercial mortgage
Non-rated		17,496		—		—		—		—		—		—		17,496
Pass		47,626		97,919		56,012		70,795		47,000		78,617		—		397,969
Special mention		—		—		141		1,853		—		659		—		2,653
Substandard		—		—		—		—		834		589		—		1,423
Total SBL commercial mortgage		65,122		97,919		56,153		72,648		47,834		79,865		—		419,541
SBL construction
Non-rated		198		—		—		—		—		—		—		198
Pass		—		11,247		12,461		2,426		—		—		—		26,134
Substandard		—		—		—		—		—		710		—		710
Total SBL construction		198		11,247		12,461		2,426		—		710		—		27,042
Direct lease financing
Non-rated		49,240		38,489		10,581		1,482		706		237		—		100,735
Pass		142,813		159,899		111,638		42,770		17,085		5,247		—		479,452
Special mention		29		—		—		—		10		8		—		47
Substandard		1,005		671		1,131		45		—		—		—		2,852
Total direct lease financing		193,087		199,059		123,350		44,297		17,801		5,492		—		583,086
SBLOC
Non-rated		—		—		—		—		—		—		3,913		3,913
Pass		—		—		—		—		—		—		1,253,147		1,253,147
Total SBLOC		—		—		—		—		—		—		1,257,060		1,257,060
IBLOC
Non-rated		—		—		—		—		—		—		503,028		503,028
Pass		—		—		—		—		—		—		514,168		514,168
Total IBLOC		—		—		—		—		—		—		1,017,196		1,017,196
Advisor financing
Non-rated		2,713		950		—		—		—		—		—		3,663
Pass		42,632		67,989		40,951		—		—		—		—		151,572
Total advisor financing		45,345		68,939		40,951		—		—		—		—		155,235
Real estate bridge loans
Pass		473,319		633,556		—		—		—		—		—		1,106,875
Total real estate bridge loans		473,319		633,556		—		—		—		—		—		1,106,875
Other loans
Non-rated		3,244		49		92		—		—		22,130		549		26,064
Pass		228		369		112		2,843		3,832		42,656		1,225		51,265
Special mention		—		—		—		—		—		3,552		—		3,552
Substandard		—		—		—		—		—		607		64		671
Total other loans**		3,472		418		204		2,843		3,832		68,945		1,838		81,552
	$	794,536	$	1,053,809	$	248,578	$	130,206	$	78,184	$	166,674	$	2,276,094	$	4,748,081
Unamortized loan fees and costs		—		—		—		—		—		—		—		6,616
Total															$	4,754,697

*Included in the SBL non real estate non-rated total of $14.4 million, were $10.3 million of PPP loans.

**Included in Other loans are $18.0 million of SBA loans purchased for Community Reinvestment Act (“CRA”) purposes as of June 30, 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.

Scheduled Maturities of Direct Financing Leases

As of June 30, 2022		2022		2021		2020		2019		2018		Prior		Total
SBL non-real estate
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	(844)	$	(844)
Current period recoveries		—		—		—		—		—		33		33
Current period SBL non-real estate net charge-offs		—		—		—		—		—		(811)		(811)
SBL commercial mortgage
Current period charge-offs		—		—		—		—		—		—		—
Current period recoveries		—		—		—		—		—		—		—
Current period SBL commercial mortgage net charge-offs		—		—		—		—		—		—		—
SBL construction
Current period charge-offs		—		—		—		—		—		—		—
Current period recoveries		—		—		—		—		—		—		—
Current period SBL construction net charge-offs		—		—		—		—		—		—		—
Direct lease financing
Current period charge-offs		—		(50)		(123)		(26)		—		—		(199)
Current period recoveries		—		—		87		6		—		—		93
Current period direct lease financing net charge-offs		—		(50)		(36)		(20)		—		—		(106)
SBLOC
Current period charge-offs		—		—		—		—		—		—		—
Current period recoveries		—		—		—		—		—		—		—
Current period SBLOC net charge-offs		—		—		—		—		—		—		—
IBLOC
Current period charge-offs		—		—		—		—		—		—		—
Current period recoveries		—		—		—		—		—		—		—
Current period IBLOC net charge-offs		—		—		—		—		—		—		—
Advisor financing
Current period charge-offs		—		—		—		—		—		—		—
Current period recoveries		—		—		—		—		—		—		—
Current period advisor financing net charge-offs		—		—		—		—		—		—		—
Real estate bridge loans
Current period charge-offs		—		—		—		—		—		—		—
Current period recoveries		—		—		—		—		—		—		—
Current period real estate bridge loans net charge-offs		—		—		—		—		—		—		—
Other loans
Current period charge-offs		—		—		—		—		—		—		—
Current period recoveries		—		—		—		—		—		—		—
Current period other loans net recoveries		—		—		—		—		—		—		—
Total
Current period charge-offs		—		(50)		(123)		(26)		—		(844)		(1,043)
Current period recoveries		—		—		87		6		—		33		126
Current period net charge-offs	$	—	$	(50)	$	(36)	$	(20)	$	—	$	(811)	$	(917)

Changes In Allowance For Loan And Lease Losses By Loan Category

	June 30, 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		(844)		—		—		(199)		—		—		—		—		—		(1,043)
Recoveries		33		—		—		93		—		—		—		—		—		126
Provision (reversal of)*		380		(632)		(3)		513		174		296		889		581		—		2,198
Ending balance	$	4,984	$	2,320	$	429	$	6,224	$	1,138	$	1,164	$	2,070	$	758	$	—	$	19,087
Ending balance: Individually evaluated for expected credit loss	$	593	$	365	$	34	$	—	$	—	$	—	$	—	$	31	$	—	$	1,023
Ending balance: Collectively evaluated for expected credit loss	$	4,391	$	1,955	$	395	$	6,224	$	1,138	$	1,164	$	2,070	$	727	$	—	$	18,064
Loans:
Ending balance**	$	112,854	$	425,219	$	27,042	$	583,086	$	2,274,256	$	155,235	$	1,106,875	$	63,514	$	6,616	$	4,754,697
Ending balance: Individually evaluated for expected credit loss	$	1,170	$	1,423	$	710	$	—	$	—	$	—	$	—	$	4,466	$	—	$	7,769
Ending balance: Collectively evaluated for expected credit loss	$	111,684	$	423,796	$	26,332	$	583,086	$	2,274,256	$	155,235	$	1,106,875	$	59,048	$	6,616	$	4,746,928

	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 (reversal of)*		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

	June 30, 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		(321)		(23)		—		(193)		(15)		—		—		—		(552)
Recoveries		15		—		—		7		—		—		—		—		22
Provision (reversal of)*		263		(663)		(27)		(139)		104		179		23		—		(260)
Ending balance	$	5,017	$	2,629	$	301	$	5,718	$	864	$	541	$	222		—	$	15,292
Ending balance: Individually evaluated for expected credit loss	$	1,559	$	510	$	34	$	—	$	—	$	—	$	10	$	—	$	2,113
Ending balance: Collectively evaluated for expected credit loss	$	3,458	$	2,119	$	267	$	5,718	$	864	$	541	$	212	$	—	$	13,179
Loans:
Ending balance**	$	228,958	$	343,487	$	18,494	$	506,424	$	1,729,628	$	72,190	$	5,840	$	10,323	$	2,915,344
Ending balance: Individually evaluated for expected credit loss	$	2,729	$	3,167	$	711	$	635	$	—	$	—	$	550	$	—	$	7,792
Ending balance: Collectively evaluated for expected credit loss	$	226,229	$	340,320	$	17,783	$	505,789	$	1,729,628	$	72,190	$	5,290	$	10,323	$	2,907,552

*The amount shown as the provision for (reversal of) credit losses for the period reflects the provision on (reversal of) credit losses for loans, while the consolidated statements of operations provision for (reversal of) credit losses include provisions for unfunded commitments of $1.3 million, $131,000 and $597,000, respectively, for the six months ended June 30, 2022 and June 30, 2021, and for full year 2021.

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

Delinquent Loans By Loan Category

	June 30, 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	$	1,327	$	1,144	$	608	$	895	$	3,974	$	108,880	$	112,854
SBL commercial mortgage		2,134		7		—		1,423		3,564		421,655		425,219
SBL construction		—		—		—		710		710		26,332		27,042
Direct lease financing		932		639		589		—		2,160		580,926		583,086
SBLOC / IBLOC		2,021		1,407		94		—		3,522		2,270,734		2,274,256
Advisor financing		—		—		—		—		—		155,235		155,235
Real estate bridge loans		—		—		—		—		—		1,106,875		1,106,875
Other loans		1,288		94		3,557		670		5,609		57,905		63,514
Unamortized loan fees and costs		—		—		—		—		—		6,616		6,616
	$	7,702	$	3,291	$	4,848	$	3,698	$	19,539	$	4,735,158	$	4,754,697

	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	$	90,377
2023		142,853
2024		119,769
2025		65,408
2026		33,777
2027 and thereafter		10,000
Total undiscounted cash flows		462,184
Residual value *		178,897
Difference between undiscounted cash flows and discounted cash flows		(57,995)
Present value of lease payments recorded as lease receivables	$	583,086

*Of the $178,897,000, $30,239,000 is not guaranteed by the lessee or other guarantors.