Loans (Tables)

9 Months Ended

Sep. 30, 2022

Loans [Abstract]

Major Classifications Of Loans

	September 30,		December 31,
	2022		2021
SBL non-real estate	$	116,080	$	147,722
SBL commercial mortgage		429,865		361,171
SBL construction		26,841		27,199
Small business loans		572,786		536,092
Direct lease financing		599,796		531,012
SBLOC / IBLOC *		2,369,106		1,929,581
Advisor financing **		168,559		115,770
Real estate bridge loans		1,488,119		621,702
Other loans ***		64,980		5,014
		5,263,346		3,739,171
Unamortized loan fees and costs		4,029		8,053
Total loans, including unamortized loan fees and costs	$	5,267,375	$	3,747,224

	September 30,		December 31,
	2022		2021
SBL loans, including costs net of deferred fees of $6,370 and $5,345
for September 30, 2022 and December 31, 2021, respectively	$	579,156	$	541,437
SBL loans included in commercial loans, at fair value		159,914		199,585
Total small business loans ****	$	739,070	$	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 September 30, 2022 and December 31, 2021, respectively, IBLOC loans amounted to $1.10 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 $1.0 million and $322,000 at September 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. September 30, 2022 includes $54.2 million of balances previously included in discontinued assets including $19.5 million of residential mortgage loans, with the balance comprised of commercial loans.

**** The small business loans held at fair value are comprised of the government guaranteed portion of SBA 7a loans at the dates indicated (in thousands).

Impaired Loans

	September 30, 2022
	Recorded ‎investment		Unpaid ‎principal ‎balance		Related ‎allowance		Average ‎recorded ‎investment		Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$	357	$	3,526	$	—	$	385	$	7
SBL commercial mortgage		—		—		—		56		—
Direct lease financing		—		—		—		66		—
Other loans		3,552		3,552		—		1,184		113
Consumer - home equity		298		298		—		309		7
With an allowance recorded
SBL non-real estate		990		990		(594)		1,303		6
SBL commercial mortgage		1,423		1,423		(222)		1,006		—
SBL construction		710		710		(34)		710		—
Other loans		592		592		(13)		2,974		—
Total
SBL non-real estate		1,347		4,516		(594)		1,688		13
SBL commercial mortgage		1,423		1,423		(222)		1,062		—
SBL construction		710		710		(34)		710		—
Direct lease financing		—		—		—		66		—
Other loans		4,144		4,144		(13)		4,158		113
Consumer - home equity		298		298		—		309		7
	$	7,922	$	11,091	$	(863)	$	7,993	$	133

	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

	September 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	$	861	$	216	$	1,077	$	1,313
SBL commercial mortgage		1,423		—		1,423		812
SBL construction		710		—		710		710
Direct leasing		—		—		—		254
Consumer - home equity		—		58		58		72
Other loans		592		—		592		—
	$	3,586	$	274	$	3,860	$	3,161

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

	September 30,		December 31,
	2022		2021
	(Dollars in thousands)
Non-accrual loans
SBL non-real estate	$	1,077	$	1,313
SBL commercial mortgage		1,423		812
SBL construction		710		710
Direct leasing		—		254
Other loans		592		—
Consumer - home equity		58		72
Total non-accrual loans		3,860		3,161
Loans past due 90 days or more and still accruing		4,415		461
Total non-performing loans		8,275		3,622
Other real estate owned		18,873		18,873
Total non-performing assets	$	27,148	$	22,495

Loans Modified And Considered Troubled Debt Restructurings

	September 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		8	$	657	$	657		9	$	1,231	$	1,231
SBL commercial mortgage		1		834		834		—		—		—
Other loans		1		3,552		3,552		—		—		—
Consumer - home equity		1		241		241		1		248		248
Total(1)		11	$	5,284	$	5,284		10	$	1,479	$	1,479

Loans Modified As Troubled Debt Restructurings

	September 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	$	—	$	—	$	657	$	—	$	—	$	1,231
SBL commercial mortgage		—		—		834		—		—		—
Other loans		—		—		3,552		—		—		—
Consumer - home equity		—		—		241		—		—		248
Total(1)	$	—	$	—	$	5,284	$	—	$	—	$	1,479

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

	September 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 September 30, 2022	2022		2021		2020		2019		2018		Prior		Revolving loans at amortized cost		Total
SBL non real estate
Non-rated*	$	4,135	$	6,321	$	306	$	—	$	—	$	—	$	—	$	10,762
Pass		23,140		30,941		14,209		7,568		6,756		6,782		—		89,396
Special mention		—		—		—		—		603		303		—		906
Substandard		—		—		334		190		—		2,819		—		3,343
Total SBL non-real estate		27,275		37,262		14,849		7,758		7,359		9,904		—		104,407
SBL commercial mortgage
Non-rated		15,964		—		—		—		—		—		—		15,964
Pass		68,176		99,428		58,784		65,792		42,986		69,141		—		404,307
Special mention		—		—		141		1,853		—		644		—		2,638
Substandard		—		—		—		—		834		589		—		1,423
Total SBL commercial mortgage		84,140		99,428		58,925		67,645		43,820		70,374		—		424,332
SBL construction
Non-rated		286		—		—		—		—		—		—		286
Pass		1,751		11,633		9,756		2,704		—		—		—		25,844
Substandard		—		—		—		—		—		710		—		710
Total SBL construction		2,037		11,633		9,756		2,704		—		710		—		26,840
Direct lease financing
Non-rated		65,992		33,930		9,081		1,302		508		146		—		110,959
Pass		189,365		145,489		98,078		36,550		12,753		3,274		—		485,509
Special mention		31		—		68		—		9		—		—		108
Substandard		1,598		653		951		18		—		—		—		3,220
Total direct lease financing		256,986		180,072		108,178		37,870		13,270		3,420		—		599,796
SBLOC
Non-rated		—		—		—		—		—		—		830		830
Pass		—		—		—		—		—		—		1,264,187		1,264,187
Total SBLOC		—		—		—		—		—		—		1,265,017		1,265,017
IBLOC
Non-rated		—		—		—		—		—		—		548,178		548,178
Pass		—		—		—		—		—		—		555,911		555,911
Total IBLOC		—		—		—		—		—		—		1,104,089		1,104,089
Advisor financing
Non-rated		17,259		3,712		—		—		—		—		—		20,971
Pass		41,498		66,560		39,530		—		—		—		—		147,588
Total advisor financing		58,757		70,272		39,530		—		—		—		—		168,559
Real estate bridge loans
Pass		840,423		647,696		—		—		—		—		—		1,488,119
Total real estate bridge loans		840,423		647,696		—		—		—		—		—		1,488,119
Other loans
Non-rated		3,774		37		62		—		—		21,714		522		26,109
Pass		227		368		2,612		2,794		3,741		40,930		1,205		51,877
Special mention		—		—		—		—		—		3,552		—		3,552
Substandard		—		—		—		—		—		592		57		649
Total other loans**		4,001		405		2,674		2,794		3,741		66,788		1,784		82,187
	$	1,273,619	$	1,046,768	$	233,912	$	118,771	$	68,190	$	151,196	$	2,370,890	$	5,263,346
Unamortized loan fees and costs		—		—		—		—		—		—		—		4,029
Total															$	5,267,375

*Included in the SBL non real estate non-rated total of $10.8 million, were $6.6 million of PPP loans.

**Included in Other loans are $17.2 million of SBA loans purchased for Community Reinvestment Act (“CRA”) purposes as of September 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.

Changes In Allowance For Loan And Lease Losses By Loan Category

	September 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		(861)		—		—		(312)		—		—		—		—		—		(1,173)
Recoveries		57		—		—		108		—		—		—		—		—		165
Provision (credit)*		300		(794)		(6)		682		220		396		1,602		491		—		2,891
Ending balance	$	4,911	$	2,158	$	426	$	6,295	$	1,184	$	1,264	$	2,783	$	668	$	—	$	19,689
Ending balance: Individually evaluated for expected credit loss	$	594	$	222	$	34	$	—	$	—	$	—	$	—	$	13	$	—	$	863
Ending balance: Collectively evaluated for expected credit loss	$	4,317	$	1,936	$	392	$	6,295	$	1,184	$	1,264	$	2,783	$	655	$	—	$	18,826
Loans:
Ending balance**	$	116,080	$	429,865	$	26,841	$	599,796	$	2,369,106	$	168,559	$	1,488,119	$	64,980	$	4,029	$	5,267,375
Ending balance: Individually evaluated for expected credit loss	$	1,347	$	1,423	$	710	$	—	$	—	$	—	$	—	$	4,442	$	—	$	7,922
Ending balance: Collectively evaluated for expected credit loss	$	114,733	$	428,442	$	26,131	$	599,796	$	2,369,106	$	168,559	$	1,488,119	$	60,538	$	4,029	$	5,259,453

	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

	September 30, 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 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 (reversal of)*		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

*The amount shown as the provision for credit losses for the period reflects the provision on credit losses for loans, while the consolidated statements of operations provision for credit losses include provisions for unfunded commitments of $1.4 million, $292,000 and $597,000, respectively, for the nine months ended September 30, 2022 and September 30, 2021, and for full year 2021.

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

Scheduled Maturities of Direct Financing Leases

As of September 30, 2022		2022		2021		2020		2019		2018		Prior		Total
SBL non-real estate
Current period charge-offs	$	—	$	—	$	(16)	$	—	$	—	$	(845)	$	(861)
Current period recoveries		—		—		—		—		3		54		57
Current period SBL non-real estate net charge-offs		—		—		(16)		—		3		(791)		(804)
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		(31)		(132)		(123)		(26)		—		—		(312)
Current period recoveries		—		—		101		7		—		—		108
Current period direct lease financing net charge-offs		(31)		(132)		(22)		(19)		—		—		(204)
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		(31)		(132)		(139)		(26)		—		(845)		(1,173)
Current period recoveries		—		—		101		7		3		54		165
Current period net charge-offs	$	(31)	$	(132)	$	(38)	$	(19)	$	3	$	(791)	$	(1,008)

Delinquent Loans By Loan Category

	September 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	$	1,715	$	1,246	$	370	$	1,077	$	4,408	$	111,672	$	116,080
SBL commercial mortgage		3,252		6		—		1,423		4,681		425,184		429,865
SBL construction		—		—		—		710		710		26,131		26,841
Direct lease financing		1,799		1,392		49		—		3,240		596,556		599,796
SBLOC / IBLOC		3,175		227		—		—		3,402		2,365,704		2,369,106
Advisor financing		—		—		—		—		—		168,559		168,559
Real estate bridge loans		—		—		—		—		—		1,488,119		1,488,119
Other loans		473		181		3,996		650		5,300		59,680		64,980
Unamortized loan fees and costs		—		—		—		—		—		4,029		4,029
	$	10,414	$	3,052	$	4,415	$	3,860	$	21,741	$	5,245,634	$	5,267,375

	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	$	47,438
2023		160,895
2024		136,205
2025		81,108
2026		46,765
2027 and thereafter		17,435
Total undiscounted cash flows		489,846
Residual value *		167,946
Difference between undiscounted cash flows and discounted cash flows		(57,996)
Present value of lease payments recorded as lease receivables	$	599,796

*Of the $167,946,000, $29,984,000 is not guaranteed by the lessee or other guarantors.