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Loans and Leases

3 Months Ended

Mar. 31, 2025

LOANS AND LEASES

Our loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired and purchased loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums on acquired loans are recognized as an adjustment to interest income over the contractual life of the loans primarily using the effective interest method or taken into income when the related loans are paid off or included in the carrying amount of loans that are sold.

Loans and Leases Held for Investment

The following table summarizes the composition of our loans and leases held for investment as of the dates indicated:


	March 31,		December 31,
	2025		2024
	(In thousands)
Real estate mortgage	$	13,655,592	$	13,605,595
Real estate construction and land (1)	2,873,608		3,187,146
Commercial	7,392,651		6,788,923
Consumer	392,953		402,254
Total gross loans and leases held for investment	24,314,804		23,983,918
Unearned discounts, net (2)	(157,921)		(175,713)
Deferred fees, net	(30,356)		(26,542)
Total loans and leases held for investment	24,126,527		23,781,663
Allowance for loan and lease losses	(234,986)		(239,360)
Total loans and leases held for investment, net (3)	$	23,891,541	$	23,542,303

____________________

(1) Includes land and acquisition and development loans of $221.4 million and $223.9 million at March 31, 2025 and December 31, 2024.

(2) Represents net acquisition discounts of $217.1 million and purchase premiums of $59.2 million at March 31, 2025, and net acquisition discounts of $235.2 million and purchase premiums of $59.5 million at December 31, 2024.

(3) Excludes accrued interest receivable of $98.9 million and $96.8 million at March 31, 2025 and December 31, 2024, respectively, which is recorded in "Other assets" on the condensed consolidated balance sheets.

The following tables present an aging analysis of our loans and leases held for investment by loan portfolio segment and class as of the dates indicated:


	March 31, 2025
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	54,667	$	37,433	$	92,100	$	4,397,443	$	4,489,543
Multi-family	1,795		21,734		23,529		6,192,555		6,216,084
Other residential	39,364		34,411		73,775		2,713,256		2,787,031
Total real estate mortgage	95,826		93,578		189,404		13,303,254		13,492,658
Real estate construction and land:
Commercial	—		—		—		733,684		733,684
Residential	—		—		—		2,127,354		2,127,354
Total real estate construction and land	—		—		—		2,861,038		2,861,038
Commercial:
Asset-based	524		993		1,517		2,303,808		2,305,325
Venture capital	—		—		—		1,733,074		1,733,074
Other commercial	2,162		4,581		6,743		3,333,657		3,340,400
Total commercial	2,686		5,574		8,260		7,370,539		7,378,799
Consumer	2,152		824		2,976		391,056		394,032
Total	$	100,664	$	99,976	$	200,640	$	23,925,887	$	24,126,527


	December 31, 2024
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	27,700	$	22,561	$	50,261	$	4,528,511	$	4,578,772
Multi-family	10,346		21,860		32,206		6,009,507		6,041,713
Other residential	39,873		36,976		76,849		2,730,325		2,807,174
Total real estate mortgage	77,919		81,397		159,316		13,268,343		13,427,659
Real estate construction and land:
Commercial	—		—		—		799,131		799,131
Residential	—		—		—		2,373,162		2,373,162
Total real estate construction and land	—		—		—		3,172,293		3,172,293
Commercial:
Asset-based	1,795		—		1,795		2,086,174		2,087,969
Venture capital	5,534		—		5,534		1,532,242		1,537,776
Other commercial	3,295		6,956		10,251		3,142,833		3,153,084
Total commercial	10,624		6,956		17,580		6,761,249		6,778,829
Consumer	2,804		493		3,297		399,585		402,882
Total	$	91,347	$	88,846	$	180,193	$	23,601,470	$	23,781,663

It is our policy to discontinue accruing interest when principal or interest payments are past due 90 days or more (unless the loan is both well secured and in the process of collection) or when, in the opinion of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business. Interest income on nonaccrual loans is recognized only to the extent cash is received and the principal balance of the loan is deemed collectable.

The following table presents our nonaccrual and performing loans and leases held for investment by loan portfolio segment and class as of the dates indicated:


	March 31, 2025						December 31, 2024
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	131,595	$	4,357,948	$	4,489,543	$	97,655	$	4,481,117	$	4,578,772
Multi-family	22,614		6,193,470		6,216,084		22,763		6,018,950		6,041,713
Other residential	44,739		2,742,292		2,787,031		46,788		2,760,386		2,807,174
Total real estate mortgage	198,948		13,293,710		13,492,658		167,206		13,260,453		13,427,659
Real estate construction and land:
Commercial	—		733,684		733,684		—		799,131		799,131
Residential	—		2,127,354		2,127,354		—		2,373,162		2,373,162
Total real estate construction and land	—		2,861,038		2,861,038		—		3,172,293		3,172,293
Commercial:
Asset-based	3,640		2,301,685		2,305,325		1,940		2,086,029		2,087,969
Venture capital	163		1,732,911		1,733,074		6,291		1,531,485		1,537,776
Other commercial	9,737		3,330,663		3,340,400		13,544		3,139,540		3,153,084
Total commercial	13,540		7,365,259		7,378,799		21,775		6,757,054		6,778,829
Consumer	992		393,040		394,032		624		402,258		402,882
Total	$	213,480	$	23,913,047	$	24,126,527	$	189,605	$	23,592,058	$	23,781,663

At March 31, 2025, nonaccrual loans and leases included $100.0 million of loans and leases 90 or more days past due, $42.7 million of loans and leases 30 to 89 days past due, and $70.8 million of loans and leases current with respect to contractual payments that were placed on nonaccrual status based on management’s judgment regarding their collectability. At December 31, 2024, nonaccrual loans and leases included $88.8 million of loans and leases 90 or more days past due, $40.6 million of loans and leases 30 to 89 days past due, and $60.2 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability.

As of March 31, 2025, our three largest loan relationships on nonaccrual status had an aggregate carrying value of $73.9 million and represented 35% of total nonaccrual loans and leases.

The following tables present the credit risk rating categories for loans and leases held for investment by loan portfolio segment and class as of the dates indicated. Classified loans and leases are those with a credit risk rating of either substandard or doubtful.


	March 31, 2025
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	317,427	$	300,298	$	3,871,818	$	4,489,543
Multi-family	216,093		149,159		5,850,832		6,216,084
Other residential	44,757		1,260		2,741,014		2,787,031
Total real estate mortgage	578,277		450,717		12,463,664		13,492,658
Real estate construction and land:
Commercial	69,324		224,152		440,208		733,684
Residential	3,120		39,730		2,084,504		2,127,354
Total real estate construction and land	72,444		263,882		2,524,712		2,861,038
Commercial:
Asset-based	3,640		37,746		2,263,939		2,305,325
Venture capital	84,412		153,942		1,494,720		1,733,074
Other commercial	24,676		25,489		3,290,235		3,340,400
Total commercial	112,728		217,177		7,048,894		7,378,799
Consumer	1,274		5,238		387,520		394,032
Total	$	764,723	$	937,014	$	22,424,790	$	24,126,527


	December 31, 2024
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	301,278	$	348,014	$	3,929,480	$	4,578,772
Multi-family	113,164		202,690		5,725,859		6,041,713
Other residential	47,993		14,351		2,744,830		2,807,174
Total real estate mortgage	462,435		565,055		12,400,169		13,427,659
Real estate construction and land:
Commercial	—		148,024		651,107		799,131
Residential	—		203,220		2,169,942		2,373,162
Total real estate construction and land	—		351,244		2,821,049		3,172,293
Commercial:
Asset-based	5,003		9,547		2,073,419		2,087,969
Venture capital	75,406		125,320		1,337,050		1,537,776
Other commercial	19,949		38,741		3,094,394		3,153,084
Total commercial	100,358		173,608		6,504,863		6,778,829
Consumer	709		7,408		394,765		402,882
Total	$	563,502	$	1,097,315	$	22,120,846	$	23,781,663

The following table presents our nonaccrual loans and leases by loan portfolio segment and class and by with and without an allowance recorded as of the date indicated and interest income recognized on nonaccrual loans and leases for the periods indicated:


			Three Months				Three Months
			Ended				Ended
	March 31,		March 31,		March 31,		March 31,
	2025		2025		2024		2024
	Nonaccrual		Interest		Nonaccrual		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	7,318	$	—	$	32,106	$	—
Multi-family	—		—		—		—
Other residential	167		—		389		—
Real estate construction and land:
Commercial	—		—		—		—
Residential	—		—		—		—
Commercial:
Asset-based	1,343		—		701		—
Venture capital	163		—		—		—
Other commercial	4,254		—		816		—
Consumer	992		—		832		—
With No Related Allowance
Recorded:
Real estate mortgage:
Commercial	$	124,277	$	5	$	34,421	$	5
Multi-family	22,614		—		953		—
Other residential	44,572		—		61,365		—
Real estate construction and land:
Commercial	—		—		—		—
Residential	—		—		—		—
Commercial:
Asset-based	2,297		—		1,624		—
Venture capital	—		—		—		—
Other commercial	5,483		—		12,574		—
Consumer	—		—		4		—
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	198,948	$	5	$	129,234	$	5
Real estate construction and land	—		—		—		—
Commercial	13,540		—		15,715		—
Consumer	992		—		836		—
Total	$	213,480	$	5	$	145,785	$	5

The following tables present our loans held for investment by loan portfolio segment and class, by credit quality indicator (internal risk ratings), and by year of origination (vintage year) as of the dates indicated:


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	—	$	1,688	$	—	$	30,897	$	27,051	$	83,098	$	—	$	—	$	142,734
3-4.5 Pass	38,604		235,421		125,387		794,202		654,529		1,785,086		67,214		28,641		3,729,084
5 Special mention	—		—		23,902		29,878		49,910		194,648		1,960		—		300,298
6-8 Classified	—		13,587		4,394		57,898		57,536		184,012		—		—		317,427
Total	$	38,604	$	250,696	$	153,683	$	912,875	$	789,026	$	2,246,844	$	69,174	$	28,641	$	4,489,543
Current YTD period:
Gross charge-offs	$	—	$	—	$	51	$	—	$	19	$	4,937	$	—	$	—	$	5,007

Real Estate Mortgage:
Multi-family
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	42,811	$	200,364	$	165,442	$	—	$	—	$	408,617
3-4.5 Pass	167,154		222,993		79,717		2,111,873		1,131,682		1,719,172		9,624		—		5,442,215
5 Special mention	—		—		—		94,140		35,087		5,532		—		14,400		149,159
6-8 Classified	—		—		—		64,974		67,214		83,905		—		—		216,093
Total	$	167,154	$	222,993	$	79,717	$	2,313,798	$	1,434,347	$	1,974,051	$	9,624	$	14,400	$	6,216,084
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Mortgage:
Other residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	3,198	$	—	$	3,198
3-4.5 Pass	39,229		(493)		28,693		334,119		2,193,054		96,367		46,781		66		2,737,816
5 Special mention	—		—		—		988		—		272		—		—		1,260
6-8 Classified	(302)		—		1,059		16,305		26,536		992		167		—		44,757
Total	$	38,927	$	(493)	$	29,752	$	351,412	$	2,219,590	$	97,631	$	50,146	$	66	$	2,787,031
Current YTD period:
Gross charge-offs	$	—	$	—	$	4	$	649	$	129	$	—	$	—	$	—	$	782

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	971		36,231		60,498		272,166		40,435		29,907		—		—		440,208
5 Special mention	—		—		—		126,496		69,983		—		27,673		—		224,152
6-8 Classified	—		—		—		—		69,324		—		—		—		69,324
Total	$	971	$	36,231	$	60,498	$	398,662	$	179,742	$	29,907	$	27,673	$	—	$	733,684
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	17,045		99,905		222,223		1,025,600		494,188		154,669		70,874		—		2,084,504
5 Special mention	—		—		—		39,730		—		—		—		—		39,730
6-8 Classified	—		—		—		—		3,120		—		—		—		3,120
Total	$	17,045	$	99,905	$	222,223	$	1,065,330	$	497,308	$	154,669	$	70,874	$	—	$	2,127,354
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	—	$	37,079	$	35,007	$	154,043	$	203,484	$	243,335	$	188,613	$	—	$	861,561
3-4.5 Pass	35,516		70,700		86,508		171,446		81,225		41,014		811,040		104,929		1,402,378
5 Special mention	—		—		194		5,567		—		—		31,985		—		37,746
6-8 Classified	—		—		—		1,344		—		—		2,296		—		3,640
Total	$	35,516	$	107,779	$	121,709	$	332,400	$	284,709	$	284,349	$	1,033,934	$	104,929	$	2,305,325
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	(114)	$	(133)	$	(97)	$	—	$	414	$	2,096	$	75,497	$	23,752	$	101,415
3-4.5 Pass	953		106,826		101,916		32,508		80,640		9,603		988,547		72,312		1,393,305
5 Special mention	—		10,010		43,355		50,884		15,367		10,657		19,505		4,164		153,942
6-8 Classified	—		14,873		14,990		—		162		—		54,387		—		84,412
Total	$	839	$	131,576	$	160,164	$	83,392	$	96,583	$	22,356	$	1,137,936	$	100,228	$	1,733,074
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	5,121	$	—	$	—	$	—	$	5,121

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	2	$	1,055	$	228	$	20,696	$	2,706	$	(44)	$	55,708	$	—	$	80,351
3-4.5 Pass	149,240		67,275		74,812		80,265		187,665		173,706		2,415,680		61,241		3,209,884
5 Special mention	—		4,499		8,939		—		9,571		74		1,553		853		25,489
6-8 Classified	—		—		1,394		3,972		157		4,448		11,415		3,290		24,676
Total	$	149,242	$	72,829	$	85,373	$	104,933	$	200,099	$	178,184	$	2,484,356	$	65,384	$	3,340,400
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	42	$	229	$	85	$	4,052	$	53	$	4,461

Consumer
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	19	$	13	$	—	$	726	$	—	$	758
3-4.5 Pass	8,622		31,769		17,466		57,517		169,532		95,999		5,655		202		386,762
5 Special mention	—		—		—		1,158		2,853		1,227		—		—		5,238
6-8 Classified	—		—		—		482		402		381		—		9		1,274
Total	$	8,622	$	31,769	$	17,466	$	59,176	$	172,800	$	97,607	$	6,381	$	211	$	394,032
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	178	$	602	$	399	$	1	$	—	$	1,180

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	(112)	$	39,689	$	35,138	$	248,466	$	434,032	$	493,927	$	323,742	$	23,752	$	1,598,634
3-4.5 Pass	457,334		870,627		797,220		4,879,696		5,032,950		4,105,523		4,415,415		267,391		20,826,156
5 Special mention	—		14,509		76,390		348,841		182,771		212,410		82,676		19,417		937,014
6-8 Classified	(302)		28,460		21,837		144,975		224,451		273,738		68,265		3,299		764,723
Total	$	456,920	$	953,285	$	930,585	$	5,621,978	$	5,874,204	$	5,085,598	$	4,890,098	$	313,859	$	24,126,527
Current YTD period:
Gross charge-offs	$	—	$	—	$	55	$	869	$	6,100	$	5,421	$	4,053	$	53	$	16,551

______________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2024	2024		2023		2022		2021		2020		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	1,694	$	—	$	26,166	$	22,821	$	8,089	$	78,588	$	1	$	—	$	137,359
3-4.5 Pass	232,808		132,389		800,877		682,806		450,822		1,407,314		56,481		28,624		3,792,121
5 Special mention	—		23,844		123,589		24,364		—		176,217		—		—		348,014
6-8 Classified	13,587		1,765		27,579		68,488		20,853		169,006		—		—		301,278
Total	$	248,089	$	157,998	$	978,211	$	798,479	$	479,764	$	1,831,125	$	56,482	$	28,624	$	4,578,772
Current YTD period:
Gross charge-offs	$	—	$	—	$	175	$	12,217	$	9,714	$	1,481	$	—	$	—	$	23,587

Real Estate Mortgage:
Multi-family
Internal risk rating:
1-2 High pass	$	—	$	—	$	55,847	$	214,583	$	62,942	$	129,163	$	—	$	—	$	462,535
3-4.5 Pass	223,333		60,137		2,037,864		1,154,452		451,602		1,324,816		11,120		—		5,263,324
5 Special mention	—		—		112,963		35,065		—		40,262		—		14,400		202,690
6-8 Classified	—		—		40,018		33,877		4,751		34,518		—		—		113,164
Total	$	223,333	$	60,137	$	2,246,692	$	1,437,977	$	519,295	$	1,528,759	$	11,120	$	14,400	$	6,041,713
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Mortgage:
Other residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	3,510	$	—	$	3,510
3-4.5 Pass	(562)		31,318		336,719		2,235,006		53,094		43,510		42,158		77		2,741,320
5 Special mention	—		310		8,121		5,644		—		276		—		—		14,351
6-8 Classified	—		3,571		25,616		17,189		—		1,448		169		—		47,993
Total	$	(562)	$	35,199	$	370,456	$	2,257,839	$	53,094	$	45,234	$	45,837	$	77	$	2,807,174
Current YTD period:
Gross charge-offs	$	—	$	3,445	$	29,099	$	6,394	$	350	$	67	$	175	$	—	$	39,530

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2024	2024		2023		2022		2021		2020		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	29,674		47,183		404,732		115,729		45,576		8,213		—		—		651,107
5 Special mention	10,501		—		—		111,933		—		—		25,590		—		148,024
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	40,175	$	47,183	$	404,732	$	227,662	$	45,576	$	8,213	$	25,590	$	—	$	799,131
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	97,488		194,405		1,113,955		436,335		224,511		—		103,248		—		2,169,942
5 Special mention	—		—		143,136		60,084		—		—		—		—		203,220
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	97,488	$	194,405	$	1,257,091	$	496,419	$	224,511	$	—	$	103,248	$	—	$	2,373,162
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	39,542	$	37,081	$	163,918	$	222,942	$	15,730	$	251,167	$	195,994	$	—	$	926,374
3-4.5 Pass	100,098		88,514		180,433		68,372		9,653		34,331		618,036		47,608		1,147,045
5 Special mention	—		194		5,569		—		—		—		3,784		—		9,547
6-8 Classified	—		—		—		—		—		—		5,003		—		5,003
Total	$	139,640	$	125,789	$	349,920	$	291,314	$	25,383	$	285,498	$	822,817	$	47,608	$	2,087,969
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	92	$	—	$	—	$	—	$	92

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	(92)	$	(100)	$	—	$	414	$	2,101	$	—	$	72,745	$	23,426	$	98,494
3-4.5 Pass	100,854		104,022		79,659		76,224		3,784		17,749		777,199		79,065		1,238,556
5 Special mention	1,396		56,973		(1)		29,973		—		—		36,979		—		125,320
6-8 Classified	14,895		—		12,821		20,182		—		—		27,508		—		75,406
Total	$	117,053	$	160,895	$	92,479	$	126,793	$	5,885	$	17,749	$	914,431	$	102,491	$	1,537,776
Current YTD period:
Gross charge-offs	$	—	$	2,272	$	—	$	14,000	$	—	$	2	$	140	$	—	$	16,414

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2024	2024		2023		2022		2021		2020		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	685	$	241	$	20,873	$	3,360	$	10	$	(83)	$	73,596	$	—	$	98,682
3-4.5 Pass	66,097		98,878		117,846		199,252		39,244		160,030		2,252,507		61,858		2,995,712
5 Special mention	6,462		8,912		2,880		144		—		127		20,073		143		38,741
6-8 Classified	—		1,397		1,243		2,365		—		5,836		8,234		874		19,949
Total	$	73,244	$	109,428	$	142,842	$	205,121	$	39,254	$	165,910	$	2,354,410	$	62,875	$	3,153,084
Current YTD period:
Gross charge-offs	$	—	$	—	$	1,144	$	500	$	1,696	$	3,159	$	2,712	$	605	$	9,816

Consumer
Internal risk rating:
1-2 High pass	$	—	$	—	$	20	$	15	$	1	$	—	$	932	$	—	$	968
3-4.5 Pass	31,034		19,181		59,594		176,189		18,658		82,678		6,231		232		393,797
5 Special mention	—		—		1,327		4,179		142		1,760		—		—		7,408
6-8 Classified	—		—		32		283		34		350		—		10		709
Total	$	31,034	$	19,181	$	60,973	$	180,666	$	18,835	$	84,788	$	7,163	$	242	$	402,882
Current YTD period:
Gross charge-offs	$	—	$	198	$	790	$	2,733	$	352	$	1,427	$	4	$	—	$	5,504

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	41,829	$	37,222	$	266,824	$	464,135	$	88,873	$	458,835	$	346,778	$	23,426	$	1,727,922
3-4.5 Pass	880,824		776,027		5,131,679		5,144,365		1,296,944		3,078,641		3,866,980		217,464		20,392,924
5 Special mention	18,359		90,233		397,584		271,386		142		218,642		86,426		14,543		1,097,315
6-8 Classified	28,482		6,733		107,309		142,384		25,638		211,158		40,914		884		563,502
Total	$	969,494	$	910,215	$	5,903,396	$	6,022,270	$	1,411,597	$	3,967,276	$	4,341,098	$	256,317	$	23,781,663
Current YTD period:
Gross charge-offs	$	—	$	5,915	$	31,208	$	35,844	$	12,204	$	6,136	$	3,031	$	605	$	94,943

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

Loan Modifications

The following tables present our loan modifications made to borrowers experiencing financial difficulty by type of modification for the periods indicated with related amortized cost balances as of the dates indicated:


	Three Months Ended March 31, 2025
	Loan Modifications
	Balances (Amortized Cost Basis) at
	March 31, 2025
													Combination - Term
									Combination - Term				Extension,
									Extension and				Rate Reduction				Total Loan
	Term Extension				Payment Delay				Rate Reduction				and Payment Delay				Modifications
			% of				% of				% of				% of				% of
			Loan				Loan				Loan				Loan				Loan
			Portfolio				Portfolio				Portfolio				Portfolio				Portfolio
	Balance		Class		Balance		Class		Balance		Class		Balance		Class		Balance		Class
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	61,021	1.4	%	$	1,599	—	%	$	—	—	%	$	—	—	%	$	62,620	1.4	%
Multi-family	39,472		0.6	%	—		—	%	—		—	%	—		—	%	39,472		0.6	%
Other residential	972		—	%	2,500		0.1	%	—		—	%	—		—	%	3,472		0.1	%
Real estate
construction
and land:

Residential	3,120		0.1	%	—		—	%	—		—	%	—		—	%	3,120		0.1	%
Commercial:
Asset-based	2,296		0.1	%	—		—	%	—		—	%	—		—	%	2,296		0.1	%
Venture capital	7,393		0.4	%	—		—	%	—		—	%	—		—	%	7,393		0.4	%
Other commercial	2,154		0.1	%	—		—	%	355		—	%	146		—	%	2,655		0.1	%

Total	$	116,428			$	4,099			$	355			$	146			$	121,028


	Three Months Ended March 31, 2024
	Loan Modifications
	Balances (Amortized Cost Basis) at
	March 31, 2024



	Term Extension
			% of
			Loan
			Portfolio
	Balance		Class
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	1,250	—	%

Other residential	1,837		—	%



Commercial:


Other commercial	2,827		0.1	%

Total	$	5,914

The following tables present the financial effect of our loan modifications made to borrowers experiencing financial difficulty by type of modification for the periods indicated:

Three Months Ended March 31, 2025

Term Extension - Financial Effect

Real estate mortgage:

Commercial

Extended maturity by a weighted average 13 months.

Multi-family

Extended maturity by a weighted average 5 months.

Other residential

Extended maturity by a weighted average 9 months.

Real estate construction and land:

Residential

Extended maturity by a weighted average 12 months.

Commercial:

Asset-based

Extended maturity by a weighted average 10 months.

Venture capital

Extended maturity by a weighted average 12 months.

Other commercial

Extended maturity by a weighted average 16 months.

Three Months Ended March 31, 2025

Payment Delay - Financial Effect

Real estate mortgage:

Commercial

Deferred partial payments for 6 months.

Other residential

Deferred partial payments for 3 months.

Three Months Ended March 31, 2025

Combination - Term Extension and Rate Reduction - Financial Effect

Commercial:

Other commercial

Extended maturity by a weighted average 4.7 years and reduced interest rates by a weighted average 1.95%.

Three Months Ended March 31, 2025

Term Extension, Rate Reduction and Payment Delay - Financial Effect

Commercial:

Other commercial

Extended maturity by a weighted average 5.1 years, reduced interest rates by a weighted average 5.75%, and granted 3 months of payment deferrals.

Three Months Ended March 31, 2024

Term Extension - Financial Effect

Real estate mortgage:

Commercial

Extended maturity by a weighted average 5 months.

Other residential

Extended maturity by a weighted average 12 months.

Commercial:

Other commercial

Extended maturity by a weighted average 3 months.

The following tables present the payment status of loans that were modified during the preceding 12-month period, with related amortized cost balances, as of the dates indicated:


	Payment Status (Amortized Cost Basis) at
	March 31, 2025
			30-89 Days		90 or More Days
	Current		Past Due		Past Due		Total
	(In thousands)
Real estate mortgage:
Commercial	$	186,826	$	—	$	7,130	$	193,956
Multi-family	39,472		—		—		39,472
Other residential	4,142		—		727		4,869
Real estate construction and land:

Residential	3,120		—		—		3,120
Commercial:
Asset-based	2,296		—		—		2,296
Venture capital	13,116		—		—		13,116
Other commercial	3,246		1,399		—		4,645
Consumer	8		—		—		8
Total	$	252,226	$	1,399	$	7,857	$	261,482


	Payment Status (Amortized Cost Basis) at
	March 31, 2024
			30-89 Days		90 or More Days
	Current		Past Due		Past Due		Total
	(In thousands)
Real estate mortgage:
Commercial	$	2,250	$	—	$	—	$	2,250

Other residential	2,953		90		1,715		4,758



Commercial:


Other commercial	4,910		—		—		4,910
Consumer	13		—		—		13
Total	$	10,126	$	90	$	1,715	$	11,931

The following tables present information on loans that defaulted during the periods indicated, which had been modified during the preceding 12-month period, with related amortized cost balances as of the dates indicated:

Three Months Ended

March 31, 2025

Modified Loans That

Subsequently Defaulted

Amortized Cost Basis at

March 31, 2025

Term Extension

(In thousands)

Commercial:

Other commercial

1,399

Total

1,399

Three Months Ended

March 31, 2024

Modified Loans That

Subsequently Defaulted

Amortized Cost Basis at

March 31, 2024

Term Extension

(In thousands)

Real estate mortgage:

Other residential

2,204

Total

2,204

Leases Receivable

We provide equipment financing to our customers primarily with operating and direct financing leases. For direct financing leases, lease receivables are recorded on the balance sheet, but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for ALLL. See Note 7. Leases for information regarding operating leases where we are the lessor.

The following table provides the components of leases receivable income for the periods indicated:


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	4,055	$	4,735

The following table presents the components of leases receivable as of the dates indicated:


	March 31, 2025		December 31, 2024
	(In thousands)
Net Investment in Direct Financing Leases:
Lease payments receivable	$	183,539	$	202,815
Unguaranteed residual assets	21,928		22,489
Deferred costs and other	1,730		1,955
Aggregate net investment in leases	$	207,197	$	227,259

The following table presents maturities of leases receivable as of the date indicated:


	March 31, 2025
	(In thousands)
Period ending December 31,
2025	$	53,211
2026	56,995
2027	41,810
2028	27,078
2029	20,169
Thereafter	5,229
Total undiscounted cash flows	204,492
Less: Unearned income	(20,953)
Present value of lease payments	$	183,539

Allowance for Loan and Lease Losses

The following tables present a summary of the activity in the ALLL on loans and leases held for investment by loan portfolio segment for the periods indicated:
















	Three Months Ended March 31, 2025
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	145,754	$	10,940	$	67,833	$	14,833	$	239,360

Charge-offs	(5,789)		—		(9,582)		(1,180)		(16,551)
Recoveries	311		—		2,104		62		2,477
Net charge-offs	(5,478)		—		(7,478)		(1,118)		(14,074)
Provision	(10,160)		3,184		15,634		1,042		9,700
Balance, end of period	$	130,116	$	14,124	$	75,989	$	14,757	$	234,986

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	1,702	$	—	$	1,625	$	—	$	3,327
Collectively evaluated	$	128,414	$	14,124	$	74,364	$	14,757	$	231,659

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	198,839	$	—	$	11,371	$	—	$	210,210
Collectively evaluated	13,293,819		2,861,038		7,367,428		394,032		23,916,317
Ending balance	$	13,492,658	$	2,861,038	$	7,378,799	$	394,032	$	24,126,527
















	Three Months Ended March 31, 2024
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	186,827	$	33,830	$	45,156	$	15,874	$	281,687
Charge-offs	(2,477)		—		(704)		(1,833)		(5,014)
Recoveries	891		—		2,869		70		3,830
Net (charge-offs) recoveries	(1,586)		—		2,165		(1,763)		(1,184)
Provision	13,033		(3,819)		(267)		2,053		11,000
Balance, end of period	$	198,274	$	30,011	$	47,054	$	16,164	$	291,503

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	8,336	$	—	$	7	$	—	$	8,343
Collectively evaluated	$	189,938	$	30,011	$	47,047	$	16,164	$	283,160

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	129,116	$	—	$	14,919	$	4	$	144,039
Collectively evaluated	15,838,283		3,245,354		5,805,648		439,698		25,328,983
Ending balance	$	15,967,399	$	3,245,354	$	5,820,567	$	439,702	$	25,473,022

The allowance for loan and lease losses decreased by $4.4 million in the first quarter of 2025 to $235.0 million due primarily to a $9.7 million provision, offset by net charge-offs of $14.1 million. For additional information regarding the calculation of the ALLL using the CECL methodology, including discussion of forecasts used to estimate the allowance, please see Note 1(j). Nature of Operations and Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans and Leases Held for Investment of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data" of the Form 10-K.

A loan is considered collateral-dependent, and is individually evaluated for reserve purposes, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent loans held for investment by collateral type as of the following dates:


	March 31, 2025				December 31, 2024
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	198,839	$	—	$	198,839	$	167,060	$	—	$	167,060

Commercial	—		7,169		7,169		—		10,870		10,870

Total	$	198,839	$	7,169	$	206,008	$	167,060	$	10,870	$	177,930

Allowance for Credit Losses

The ACL is the combination of the ALLL and the reserve for unfunded loan commitments. The reserve for unfunded loan commitments is included within "Accrued interest payable and other liabilities" on the condensed consolidated balance sheets.

The following tables present a summary of the activity in the ALLL and reserve for unfunded loan commitments for the periods indicated:
















	Three Months Ended
	March 31, 2025
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	239,360	$	29,071	$	268,431
Charge-offs	(16,551)		—		(16,551)
Recoveries	2,477		—		2,477
Net charge-offs	(14,074)		—		(14,074)
Provision	9,700		500		10,200
Balance, end of period	$	234,986	$	29,571	$	264,557
















	Three Months Ended
	March 31, 2024
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	281,687	$	29,571	$	311,258
Charge-offs	(5,014)		—		(5,014)
Recoveries	3,830		—		3,830
Net charge-offs	(1,184)		—		(1,184)
Provision	11,000		(1,000)		10,000
Balance, end of period	$	291,503	$	28,571	$	320,074