Bank Loans (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Balance and Associated Percentage of Each Major Loan Category in Bank Loan Portfolio

The following table presents the balance and associated percentage of each major loan category in our bank loan portfolio at June 30, 2024 and December 31, 2023 (in thousands, except percentages):

	June 30, 2024						December 31, 2023
	Balance			Percent			Balance			Percent
Residential real estate	$	8,253,851			42.2	%	$	8,047,647			41.4	%
Commercial and industrial		3,689,379			18.9			3,566,987			18.3
Fund banking		3,346,785			17.1			3,633,126			18.7
Securities-based loans		2,253,045			11.5			2,306,455			11.9
Construction and land		1,198,395			6.1			1,034,370			5.3
Commercial real estate		608,911			3.1			660,631			3.4
Home equity lines of credit		158,472			0.8			136,270			0.7
Other		45,920			0.3			55,981			0.3
Gross bank loans		19,554,758			100.0	%		19,441,467			100.0	%
Loans in process/(unapplied loan payments), net		(67,194	)					1,108
Unamortized loan fees, net		(5,483	)					(8,478	)
Allowance for loan losses		(135,114	)					(128,292	)
Loans held for investment, net	$	19,346,967					$	19,305,805

Activity in the Allowance for Loan Losses by Portfolio Segment

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2024 (in thousands).

	Three Months Ended June 30, 2024
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	65,887	$	10,708		$	(241	)	$	—	$	76,354
Construction and land		18,589		(2,210	)		—			—		16,379
Commercial real estate		20,689		(3,687	)		(1,690	)		—		15,312
Fund banking		8,763		3,416			—			—		12,179
Residential real estate		12,507		(1,265	)		—			—		11,242
Securities-based loans		3,068		(255	)		—			—		2,813
Home equity lines of credit		246		116			—			—		362
Other		464		9			—			—		473
	$	130,213	$	6,832		$	(1,931	)	$	—	$	135,114

	Six Months Ended June 30, 2024
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	67,077	$	12,155		$	(3,811	)	$	933	$	76,354
Construction and land		11,817		4,562			—			—		16,379
Commercial real estate		21,386		(4,384	)		(1,690	)		—		15,312
Fund banking		10,173		2,006			—			—		12,179
Residential real estate		13,855		(2,613	)		—			—		11,242
Securities-based loans		3,035		(222	)		—			—		2,813
Home equity lines of credit		371		(9	)		—			—		362
Other		578		(105	)		—			—		473
	$	128,292	$	11,390		$	(5,501	)	$	933	$	135,114

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2023 (in thousands).

	Three Months Ended June 30, 2023
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	55,734	$	11,241		$	(598	)	$	—	$	66,377
Residential real estate		22,696		(8,283	)		—			—		14,413
Commercial real estate		11,566		1,863			—			—		13,429
Construction and land		10,317		2,328			—			—		12,645
Fund banking		12,943		(765	)		—			—		12,178
Securities-based loans		3,117		(31	)		—			—		3,086
Home equity lines of credit		412		(244	)		—			—		168
Other		377		8			—			—		385
	$	117,162	$	6,117		$	(598	)	$	—	$	122,681

	Six Months Ended June 30, 2023
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	54,143	$	12,699		$	(618	)	$	153	$	66,377
Residential real estate		20,441		(6,028	)		—			—		14,413
Commercial real estate		12,897		532			—			—		13,429
Construction and land		8,568		4,077			—			—		12,645
Fund banking		11,711		467			—			—		12,178
Securities-based loans		3,157		(71	)		—			—		3,086
Home equity lines of credit		364		(196	)		—			—		168
Other		372		13			—			—		385
	$	111,653	$	11,493		$	(618	)	$	153	$	122,681

Aging of the Recorded Investment in Past Due Loans

The following tables present the aging of the recorded investment in past due loans at June 30, 2024 and December 31, 2023 by portfolio segment (in thousands):

	As of June 30, 2024
	30 – 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current Balance		Total
Residential real estate	$	16,109	$	2,359	$	18,468	$	8,235,383	$	8,253,851
Commercial and industrial		27,475		2,329		29,804		3,659,575		3,689,379
Fund banking		—		—		—		3,346,785		3,346,785
Securities-based loans		—		—		—		2,253,045		2,253,045
Construction and land		—		—		—		1,198,395		1,198,395
Commercial real estate		—		—		—		608,911		608,911
Home equity lines of credit		681		378		1,059		157,413		158,472
Other		41		63		104		45,816		45,920
Total	$	44,306	$	5,129	$	49,435	$	19,505,323	$	19,554,758

	As of June 30, 2024*
	Nonaccrual		Nonperforming loans with no allowance		Total
Commercial and industrial	$	33,266	$	13,388	$	46,654
Commercial real estate		35,649		—		35,649
Residential real estate		1,435		924		2,359
Home equity lines of credit		378		—		378
Other		63		—		63
Total	$	70,791	$	14,312	$	85,103

* There were no loans past due 90 days and still accruing interest at June 30, 2024.

	As of December 31, 2023
	30 – 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current Balance		Total
Residential real estate	$	15,312	$	3,945	$	19,257	$	8,028,390	$	8,047,647
Fund banking		—		—		—		3,633,126		3,633,126
Commercial and industrial		—		2,022		2,022		3,564,965		3,566,987
Securities-based loans		—		3		3		2,306,452		2,306,455
Construction and land		—		—		—		1,034,370		1,034,370
Commercial real estate		—		—		—		660,631		660,631
Home equity lines of credit		570		87		657		135,613		136,270
Other		45		59		104		55,877		55,981
Total	$	15,927	$	6,116	$	22,043	$	19,419,424	$	19,441,467

	As of December 31, 2023*
	Nonaccrual		Nonperforming loans with no allowance		Total
Commercial real estate	$	39,195	$	—	$	39,195
Residential real estate		3,090		1,000		4,090
Commercial and industrial		—		2,022		2,022
Securities-based loans		—		3		3
Home equity lines of credit		22		65		87
Other		59		—		59
Total	$	42,366	$	3,090	$	45,456

* There were no loans past due 90 days and still accruing interest at December 31, 2023.

Risk Category of Loan Portfolio

Based on the most recent analysis performed, the risk category of our loan portfolio was as follows (in thousands):

	As of June 30, 2024
	Pass		Special Mention		Substandard		Doubtful		Total
Residential real estate	$	8,248,043	$	3,449	$	2,359	$	—	$	8,253,851
Commercial and industrial		3,344,761		166,429		148,385		29,804		3,689,379
Fund banking		3,346,785		—		—		—		3,346,785
Securities-based loans		2,253,045		—		—		—		2,253,045
Construction and land		1,149,751		—		48,644		—		1,198,395
Commercial real estate		485,955		30,827		92,129		—		608,911
Home equity lines of credit		158,094		—		378		—		158,472
Other		45,833		36		—		51		45,920
Total	$	19,032,267	$	200,741	$	291,895	$	29,855	$	19,554,758

	As of December 31, 2023
	Pass		Special Mention		Substandard		Doubtful		Total
Residential real estate	$	8,042,246	$	1,456	$	3,945	$	—	$	8,047,647
Fund banking		3,633,126		—		—		—		3,633,126
Commercial and industrial		3,294,891		89,302		180,772		2,022		3,566,987
Securities-based loans		2,306,452		—		—		3		2,306,455
Construction and land		963,083		71,287		—		—		1,034,370
Commercial real estate		512,171		49,264		99,196		—		660,631
Home equity lines of credit		135,806		377		87		—		136,270
Other		55,922		—		—		59		55,981
Total	$	18,943,697	$	211,686	$	284,000	$	2,084	$	19,441,467

Schedule of Term Loans Amortized Cost Basis by Origination Year and Revolving Cost Amortized Cost Basis

	Term Loans Amortized Cost Basis by Origination Year – June 30, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Residential real estate:
Pass	$	557,765	$	1,143,019	$	2,547,526	$	2,229,118	$	880,955	$	889,660	$	—	$	8,248,043
Special Mention		—		1,100		576		—		—		1,773		—		3,449
Substandard		—		—		1,576		—		—		783		—		2,359
Doubtful		—		—		—		—		—		—		—		—
	$	557,765	$	1,144,119	$	2,549,678	$	2,229,118	$	880,955	$	892,216	$	—	$	8,253,851
Commercial and industrial:
Pass	$	420,529	$	606,248	$	805,524	$	668,401	$	79,867	$	121,206	$	642,986	$	3,344,761
Special Mention		421		10,289		46,704		28,125		877		—		80,013		166,429
Substandard		6,790		—		53,197		34,522		—		3,462		50,414		148,385
Doubtful		—		—		—		27,475		—		—		2,329		29,804
	$	427,740	$	616,537	$	905,425	$	758,523	$	80,744	$	124,668	$	775,742	$	3,689,379
Fund banking:
Pass	$	—	$	790	$	41,588	$	—	$	447	$	—	$	3,303,960	$	3,346,785
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
	$	—	$	790	$	41,588	$	—	$	447	$	—	$	3,303,960	$	3,346,785
Securities-based loans:
Pass	$	2,187	$	14,728	$	2,421	$	2,123	$	48,039	$	36,572	$	2,146,975	$	2,253,045
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
	$	2,187	$	14,728	$	2,421	$	2,123	$	48,039	$	36,572	$	2,146,975	$	2,253,045
Construction and land:
Pass	$	—	$	175,662	$	557,241	$	212,681	$	191,027	$	13,140	$	—	$	1,149,751
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		48,644		—		48,644
Doubtful		—		—		—		—		—		—		—		—
	$	—	$	175,662	$	557,241	$	212,681	$	191,027	$	61,784	$	—	$	1,198,395
Commercial real estate:
Pass	$	—	$	32,985	$	283,639	$	64,660	$	30,371	$	74,300	$	—	$	485,955
Special Mention		—		—		30,827		—		—		—		—		30,827
Substandard		—		—		56,480		35,649		—		—		—		92,129
Doubtful		—		—		—		—		—		—		—		—
	$	—	$	32,985	$	370,946	$	100,309	$	30,371	$	74,300	$	—	$	608,911
Home equity lines of credit:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	158,094	$	158,094
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		378		378
Doubtful		—		—		—		—		—		—		—		—
	$	—	$	—	$	—	$	—	$	—	$	—	$	158,472	$	158,472
Other:
Pass	$	2,855	$	—	$	3,991	$	—	$	10,000	$	22,053	$	6,934	$	45,833
Special Mention		—		—		—		—		—		—		36		36
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		51		51
	$	2,855	$	—	$	3,991	$	—	$	10,000	$	22,053	$	7,021	$	45,920