v3.25.1
Loans and Leases Held for Investment and Credit Quality (Tables)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Schedule of Age Analysis of Past Due Loans and Leases
The following tables present total loans and leases held for investment and an aging analysis for the Company’s portfolio segments. Loans and leases are considered past due if the required principal and interest payments have not been received as of the date such payments were due.
Current or Less than 30 Days
Past Due 		30-89 Days
Past Due		90 Days or More Past Due Total Past Due Total Carried at Amortized
Cost
Loans Accounted for Under
the Fair Value Option (1)
Total Loans and Leases
March 31, 2025
Commercial & Industrial
Small Business Banking$2,251,813$25,540$121,830$147,370$2,399,183$112,013$2,511,196
Commercial Banking2,535,6842,54439,02241,5662,577,25048,6582,625,908
Paycheck Protection Program1,3991012603611,760—1,760
Total4,788,89628,185161,112189,2974,978,193160,6715,138,864
Construction & Development
Small Business Banking585,725—2,4682,468588,193—588,193
Commercial Banking86,236———86,236—86,236
Total671,961—2,4682,468674,429—674,429
Commercial Real Estate
Small Business Banking2,849,42220,91882,618103,5362,952,958106,4783,059,436
Commercial Banking1,137,27515,99010,45126,4411,163,71619,0911,182,807
Total3,986,69736,90893,069129,9774,116,674125,5694,242,243
Commercial Land
Small Business Banking638,107—4,0424,042642,14930,567672,716
Total638,107—4,0424,042642,14930,567672,716
Total$10,085,661$65,093$260,691$325,784$10,411,445$316,807$10,728,252
Retained Loan Discount and Net Deferred Costs$(34,341)
Loans and Leases, Net$10,693,911
Guaranteed Balance$2,959,459$35,990$202,876$238,866$3,198,325$81,112$3,279,437
% Guaranteed29.3%55.3%77.8%73.3%30.7%25.6%30.6%
Current or Less than 30 Days
Past Due
30-89 Days
Past Due
90 Days or More Past Due Total Past Due Total Carried at Amortized
Cost
Loans Accounted for Under
the Fair Value Option (1)
Total Loans and Leases
December 31, 2024
Commercial & Industrial
Small Business Banking$2,182,596$37,966$104,362$142,328$2,324,924$119,378$2,444,302
Commercial Banking2,418,07815,28223,99939,2812,457,35949,7672,507,126
Paycheck Protection Program2,361———2,361—2,361
Total4,603,03553,248128,361181,6094,784,644169,1454,953,789
Construction & Development
Small Business Banking514,9971,4882,4683,956518,953—518,953
Commercial Banking85,456———85,456—85,456
Total600,4531,4882,4683,956604,409—604,409
Commercial Real Estate
Small Business Banking2,773,30642,05857,89699,9542,873,260107,7512,981,011
Commercial Banking1,040,0655,00010,77815,7781,055,84319,0251,074,868
Total3,813,37147,05868,674115,7323,929,103126,7764,055,879
Commercial Land       
Small Business Banking610,9202,2093,3245,533616,45332,825649,278
Total610,9202,2093,3245,533616,45332,825649,278
Total$9,627,779$104,003$202,827$306,830$9,934,609$328,746$10,263,355
Retained Loan Discount and Net Deferred Costs$(29,981)
Loans and Leases, Net$10,233,374
 
Guaranteed Balance$2,933,636$58,235$171,123$229,358$3,162,994$77,514$3,240,508
% Guaranteed30.5%56.0%84.4%74.8%31.8%23.6%31.6%
(1)
Retained portions of government guaranteed loans sold prior to January 1, 2021 are carried at fair value under FASB ASC Subtopic 825-10, Financial Instruments: Overall. See Note 9. Fair Value of Financial Instruments for additional information.
Schedule of Credit Quality Indicators by Portfolio Class
The following tables present asset quality indicators by portfolio class and origination year. See Note 3. Loans and Leases Held for Investment and Credit Quality in the Company’s 2024 Form 10-K for additional discussion around the asset quality indicators that the Company uses to manage and monitor credit risk.
Term Loans and Leases Amortized Cost Basis by Origination Year
20252024202320222021PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term
Total (1)
March 31, 2025
Small Business Banking
Pass$321,320 $1,194,328 $1,062,093 $1,218,096 $963,900 $905,959 $131,367 $35,824 $5,832,887 
Special Mention615 20,262 63,949 102,214 53,783 104,710 26,463 1,542 373,538 
Substandard— 15,190 43,727 102,818 83,386 119,238 9,686 2,013 376,058 
Total321,935 1,229,780 1,169,769 1,423,128 1,101,069 1,129,907 167,516 39,379 6,582,483 
Commercial Banking
Pass244,185 1,121,801 700,250 395,072 188,678 120,302 531,286 137,117 3,438,691 
Special Mention— 1,000 16,359 73,194 51,389 36,457 9,127 5,552 193,078 
Substandard— — — 18,979 130,346 32,492 402 13,214 195,433 
Total244,185 1,122,801 716,609 487,245 370,413 189,251 540,815 155,883 3,827,202 
Paycheck Protection Program
Pass— — — — 1,257 503 — — 1,760 
Total— — — — 1,257 503 — — 1,760 
Total$566,120 $2,352,581 $1,886,378 $1,910,373 $1,472,739 $1,319,661 $708,331 $195,262 $10,411,445 
Year-To-Date Gross Charge-offs
Small Business Banking$— $1,822 $1,269 $2,135 $76 $1,152 $469 $— $6,923 
Total$— $1,822 $1,269 $2,135 $76 $1,152 $469 $— $6,923 
Term Loans and Leases Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term
Total (1)
December 31, 2024
Small Business Banking
Pass$1,112,351 $1,084,996 $1,323,982 $1,001,021 $528,008 $482,192 $124,370 $33,359 $5,690,279 
Special Mention7,041 46,047 77,638 61,906 31,575 83,693 22,729 2,790 333,419 
Substandard13,805 28,573 84,067 74,990 40,266 59,874 7,922 395 309,892 
Total1,133,197 1,159,616 1,485,687 1,137,917 599,849 625,759 155,021 36,544 6,333,590 
Commercial Banking
Pass1,169,167 752,078 398,333 207,755 51,552 81,166 423,334 116,594 3,199,979 
Special Mention— 16,483 88,464 36,165 24,018 17,569 9,555 4,245 196,499 
Substandard— — 31,461 136,818 27,905 — 2,902 3,094 202,180 
Total1,169,167 — 768,561 — 518,258 — 380,738 — 103,475 — 98,735 — 435,791 — 123,933 3,598,658 
Paycheck Protection Program         
Pass— — — 1,461 900 — — — 2,361 
Total— — — 1,461 900 — — — 2,361 
Total$2,302,364 $1,928,177 $2,003,945 $1,520,116 $704,224 $724,494 $590,812 $160,477 $9,934,609 
Year-To-Date
Gross Charge-offs
Small Business Banking$652 $4,198 $18,630 $4,954 $3,462 $3,481 $3,555 $170 $39,102 
Commercial Banking— 17 5,176 1,493 756 — 1,535 — 8,977 
Total$652 $4,215 $23,806 $6,447 $4,218 $3,481 $5,090 $170 $48,079 
(1)
Excludes $316.8 million and $328.7 million of loans accounted for under the fair value option as of March 31, 2025 and December 31, 2024, respectively.
The following tables present guaranteed and unguaranteed loan and lease balances by asset quality indicator:
March 31, 2025
Loan and Lease
Balance (1)
Guaranteed BalanceUnguaranteed Balance% Guaranteed
Pass$9,273,338 $2,627,607 $6,645,731 28.3 %
Special Mention566,616 176,876 389,740 31.2 
Substandard571,491 393,842 177,649 68.9 
Total$10,411,445 $3,198,325 $7,213,120 30.7 %
December 31, 2024
Loan and Lease
Balance (1)
Guaranteed BalanceUnguaranteed Balance% Guaranteed
Pass$8,892,619 $2,644,310 $6,248,309 29.7 %
Special Mention529,918 172,015 357,903 32.5 
Substandard512,072 346,669 165,403 67.7 
Total$9,934,609 $3,162,994 $6,771,615 31.8 %
(1)
Excludes $316.8 million and $328.7 million of loans accounted for under the fair value option as of March 31, 2025 and December 31, 2024, respectively.
Schedule of Nonaccrual Loans and Leases
Nonaccrual loans and leases held for investment as of March 31, 2025 and December 31, 2024 are as follows:
March 31, 2025
Loan and Lease
Balance (1)
Guaranteed
Balance		Unguaranteed BalanceUnguaranteed
Exposure with No Allowance for Credit Losses (“ACL”)
Commercial & Industrial
Small Business Banking$152,494 $126,631 $25,863 $4,484 
Commercial Banking136,231 109,371 26,860 3,810 
Payroll Protection Program260 260 — — 
Total288,985 236,262 52,723 8,294 
Construction & Development
Small Business Banking2,467 2,263 204 — 
Total2,467 2,263 204 — 
Commercial Real Estate
Small Business Banking94,727 63,701 31,026 20,865 
Commercial Banking26,441 13,591 12,850 11,874 
Total121,168 77,292 43,876 32,739 
Commercial Land
Small Business Banking10,280 7,176 3,104 168 
Total10,280 7,176 3,104 168 
Total$422,900 $322,993 $99,907 $41,201 
December 31, 2024
Loan and Lease Balance (1)
Guaranteed
Balance		Unguaranteed BalanceUnguaranteed
Exposure with No ACL
Commercial & Industrial
Small Business Banking$141,674 $116,596 $25,078 $5,219 
Commercial Banking39,282 26,300 12,982 3,816 
Total180,956 142,896 38,060 9,035 
Construction & Development
Small Business Banking3,955 3,379 576 372 
Total3,955 3,379 576 372 
Commercial Real Estate
Small Business Banking81,847 55,290 26,557 17,736 
Commercial Banking26,888 13,981 12,907 11,907 
Total108,735 69,271 39,464 29,643 
Commercial Land
Small Business Banking10,651 7,339 3,312 173 
Total10,651 7,339 3,312 173 
Total$304,297 $222,885 $81,412 $39,223 
(1)
Excludes loans accounted for under the fair value option. See Note 9. Fair Value of Financial Instruments for additional information.
When a loan or lease is placed on nonaccrual status, any accrued interest is reversed from loan interest income. The following table summarizes the amount of accrued interest reversed during the periods presented:
Three Months Ended March 31,
20252024
Commercial & Industrial $444 $610 
Commercial Real Estate490 119 
Construction & Development— 30 
Total$934 $759 
Schedule of Amortized Cost Basis of Collateral-Dependent Loans and Leases
The following table presents the amortized cost basis of collateral-dependent loans and leases, which are individually evaluated to determine expected credit losses, as of March 31, 2025 and December 31, 2024:
Total Collateral-Dependent LoansUnguaranteed Portion
March 31, 2025Real EstateBusiness AssetsReal EstateBusiness AssetsAllowance for Credit Losses
Commercial & Industrial
Small Business Banking$32,991 $20,299 $9,484 $6,974 $9,266 
Commercial Banking2,869 16,525 74 9,812 3,100 
Total35,860 36,824 9,558 16,786 12,366 
Commercial Real Estate
Small Business Banking67,093 — 25,814 — 1,426 
Commercial Banking11,103 — 11,103 — — 
Total78,196 — 36,917 — 1,426 
Commercial Land
Small Business Banking4,209 2,006 687 2,006 986 
Total4,209 2,006 687 2,006 986 
Total$118,265 $38,830 $47,162 $18,792 $14,778 
Total Collateral-Dependent LoansUnguaranteed Portion
December 31, 2024Real EstateBusiness AssetsReal EstateBusiness AssetsAllowance for Credit Losses
Commercial & Industrial
Small Business Banking$6,693 $36,500 $2,738 $12,061 $8,299 
Commercial Banking101,001 26,788 13,704 11,350 4,374 
Total107,694 63,288 16,442 23,411 12,673 
Commercial Real Estate
Small Business Banking53,306 6,327 22,239 1,061 890 
Total53,306 6,327 22,239 1,061 890 
Commercial Land
Small Business Banking6,295 — 2,713 — 974 
Total6,295 — 2,713 — 974 
Total$167,295 $69,615 $41,394 $24,472 $14,537 
Schedule of Activity in the Allowance for Credit Losses by Portfolio Segment
The following table details activity in the ACL by portfolio segment allowance for the periods presented:
Three Months EndedCommercial
& Industrial 		Construction &
Development 		Commercial
Real Estate 		Commercial
Land 		Total
March 31, 2025
Beginning Balance$129,007 $4,943 $29,501 $4,065 $167,516 
Charge offs(5,987)— (936)— (6,923)
Recoveries40 — 91 18 149 
Provision26,856 769 1,639 178 29,442 
Ending Balance$149,916 $5,712 $30,295 $4,261 $190,184 
March 31, 2024
Beginning Balance$87,581 $4,717 $28,864 $4,678 $125,840 
Charge offs(3,329)(303)— — (3,632)
Recoveries455 — 14 — 469 
Provision (Recovery)13,845 (122)2,491 150 16,364 
Ending Balance$98,552 $4,292 $31,369 $4,828 $139,041 
Schedule of Loans Modified
The following table summarizes the amortized cost basis of loans that were modified during the three months ended March 31, 2025:
Three Months Ended March 31, 2025Term ExtensionInterest Rate ReductionCombination - Term Extension, Other-Than-Insignificant Payment Delay & Interest Rate Reduction
Combination - Term Extension & Other-Than-Insignificant Payment Delay		Combination - Term Extension & Interest Rate Reduction% of Total Class of
Financing Receivable
Small Business Banking$3,601 $2,243 $3,057 $3,009 $193 0.2 %
Total$3,601 $2,243 $3,057 $3,009 $193 0.2 %
The following table presents an aging analysis of loans that were modified within the twelve months ended March 31, 2025, and March 31, 2024, respectively:

March 31, 2025Current30-89 Days
Past Due		90 Days or More Past DueTotal Past Due
Small Business Banking$17,644 $— $2,243 $2,243 
Commercial Banking17,576 — — — 
Total$35,220 $— $2,243 $2,243 

March 31, 2024Current30-89 Days
Past Due		90 Days or More Past DueTotal Past Due
Small Business Banking$15,286 $— $— $— 
Commercial Banking17,691 — — — 
Total$32,977 $— $— $— 
The following table summarizes the financial impacts of loan modifications made to borrowers experiencing financial difficulty during the period presented:
Three Months Ended March 31, 2025
Weighted Average
Interest Rate Reduction 		Weighted Average
Term Extension (in Months)
Small Business Banking1.81 %44