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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2014
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $87 million and $89 million at March 31, 2014 and December 31, 2013, respectively, is presented in the following table:
(Dollars in thousands)
 
March 31, 2014
 
December 31, 2013
Commercial loans:
 
 
 
 
Software
 
$
4,125,823

 
$
4,102,636

Hardware
 
1,193,183

 
1,213,032

Venture capital/private equity
 
2,201,243

 
2,386,054

Life science
 
1,171,258

 
1,170,220

Premium wine
 
161,186

 
149,841

Other
 
293,597

 
288,904

Total commercial loans
 
9,146,290

 
9,310,687

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
540,193

 
514,993

Consumer loans (2)
 
916,998

 
873,255

Other
 
30,548

 
30,743

Total real estate secured loans
 
1,487,739

 
1,418,991

Construction loans
 
98,413

 
76,997

Consumer loans
 
101,466

 
99,711

Total loans, net of unearned income (3)
 
$
10,833,908

 
$
10,906,386

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $112 million at both March 31, 2014 and December 31, 2013, respectively.
(2)
Consumer loans secured by real estate at March 31, 2014 and December 31, 2013 were comprised of the following:
(Dollars in thousands)
 
March 31, 2014
 
December 31, 2013
Loans for personal residence
 
$
724,797

 
$
685,327

Loans to eligible employees
 
123,062

 
121,548

Home equity lines of credit
 
69,139

 
66,380

Consumer loans secured by real estate
 
$
916,998

 
$
873,255


(3)
Included within our total loan portfolio are credit card loans of $105 million and $85 million at March 31, 2014 and December 31, 2013, respectively.
Composition of Loans, Net of Unearned Income, Broken Out by Portfolio Segment and Class of Financing Receivable
The composition of loans, net of unearned income of $87 million and $89 million at March 31, 2014 and December 31, 2013, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
(Dollars in thousands)
 
March 31, 2014
 
December 31, 2013
Commercial loans:
 
 
 
 
Software
 
$
4,125,823

 
$
4,102,636

Hardware
 
1,193,183

 
1,213,032

Venture capital/private equity
 
2,201,243

 
2,386,054

Life science
 
1,171,258

 
1,170,220

Premium wine
 
701,379

 
664,834

Other
 
422,558

 
396,644

Total commercial loans
 
9,815,444

 
9,933,420

Consumer loans:
 
 
 
 
Real estate secured loans
 
916,998

 
873,255

Other consumer loans
 
101,466

 
99,711

Total consumer loans
 
1,018,464

 
972,966

Total loans, net of unearned income
 
$
10,833,908

 
$
10,906,386
Aging of Gross Loans, Broken out by Portfolio Segment and Class of Financing Receivable
The following table summarizes the aging of our gross loans, broken out by portfolio segment and class of financing receivable as of March 31, 2014 and December 31, 2013:
(Dollars in thousands)
 
30 - 59
  Days Past  
Due
 
60 - 89
  Days Past  
Due
 
Greater
Than 90
  Days Past  
Due
 
  Total Past  
Due
 
Current  
 
  Loans Past Due  
90 Days or
More Still
Accruing
Interest
March 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
$
9,609

 
$
2,925

 
$
99

 
$
12,633

 
$
4,140,041

 
$
99

Hardware
 
2,007

 
480

 
—

 
2,487

 
1,193,977

 
—

Venture capital/private equity
 
47,711

 
—

 
—

 
47,711

 
2,174,061

 
—

Life science
 
7,248

 
203

 
—

 
7,451

 
1,173,859

 
—

Premium wine
 
1,400

 
—

 
—

 
1,400

 
700,970

 
—

Other
 
70

 
116

 
—

 
186

 
423,259

 
—

Total commercial loans
 
68,045

 
3,724

 
99

 
71,868

 
9,806,167

 
99

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
6,165

 
—

 
—

 
6,165

 
910,378

 
—

Other consumer loans
 
29

 
—

 
—

 
29

 
100,886

 
—

Total consumer loans
 
6,194

 
—

 
—

 
6,194

 
1,011,264

 
—

Total gross loans excluding impaired loans
 
74,239

 
3,724

 
99

 
78,062

 
10,817,431

 
99

Impaired loans
 
6,590

 
370

 
2,287

 
9,247

 
15,742

 
—

Total gross loans
 
$
80,829

 
$
4,094

 
$
2,386

 
$
87,309

 
$
10,833,173

 
$
99

December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
$
9,804

 
$
1,291

 
$
99

 
$
11,194

 
$
4,102,546

 
$
99

Hardware
 
2,679

 
3,965

 
—

 
6,644

 
1,198,169

 
—

Venture capital/private equity
 
4

 
—

 
—

 
4

 
2,408,382

 
—

Life science
 
395

 
131

 
—

 
526

 
1,179,462

 
—

Premium wine
 
—

 
—

 
—

 
—

 
665,755

 
—

Other
 
1,580

 
142

 
—

 
1,722

 
397,416

 
—

Total commercial loans
 
14,462

 
5,529

 
99

 
20,090

 
9,951,730

 
99

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
240

 
—

 
—

 
240

 
872,586

 
—

Other consumer loans
 
8

 
—

 
—

 
8

 
98,965

 
—

Total consumer loans
 
248

 
—

 
—

 
248

 
971,551

 
—

Total gross loans excluding impaired loans
 
14,710

 
5,529

 
99

 
20,338

 
10,923,281

 
99

Impaired loans
 
4,657

 
7,043

 
4,339

 
16,039

 
35,610

 
—

Total gross loans
 
$
19,367

 
$
12,572

 
$
4,438

 
$
36,377

 
$
10,958,891

 
$
99
Impaired Loans and Allowance for Loan Losses, Broken out by Portfolio Segment and Class of Financing Receivable
The following table summarizes our impaired loans as they relate to our allowance for loan losses, broken out by portfolio segment and class of financing receivable as of March 31, 2014 and December 31, 2013:
(Dollars in thousands)
 
Impaired loans for  
which there is a
related allowance
for loan losses
 
Impaired loans for  
which there is no
related allowance
for loan losses
 
Total carrying value of impaired loans
 
Total unpaid
principal of impaired loans
March 31, 2014:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
11,214

 
$
547

 
$
11,761

 
$
12,002

Hardware
 
7,541

 
345

 
7,886

 
9,505

Venture capital/private equity
 
—

 
—

 
—

 
—

Life science
 
909

 
—

 
909

 
4,892

Premium wine
 
—

 
1,408

 
1,408

 
1,769

Other
 
2,339

 
—

 
2,339

 
2,394

Total commercial loans
 
22,003

 
2,300

 
24,303

 
30,562

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
236

 
236

 
1,432

Other consumer loans
 
450

 
—

 
450

 
730

Total consumer loans
 
450

 
236

 
686

 
2,162

Total
 
$
22,453

 
$
2,536

 
$
24,989

 
$
32,724

December 31, 2013:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
27,308

 
$
310

 
$
27,618

 
$
28,316

Hardware
 
19,329

 
338

 
19,667

 
35,317

Venture capital/private equity
 
40

 
—

 
40

 
40

Life science
 
—

 
1,278

 
1,278

 
4,727

Premium wine
 
—

 
1,442

 
1,442

 
1,778

Other
 
690

 
—

 
690

 
718

Total commercial loans
 
47,367

 
3,368

 
50,735

 
70,896

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
244

 
244

 
1,434

Other consumer loans
 
670

 
—

 
670

 
941

Total consumer loans
 
670

 
244

 
914

 
2,375

Total
 
$
48,037

 
$
3,612

 
$
51,649

 
$
73,271
Average Impaired Loans, Broken out by Portfolio Segment and Class of Financing Receivable
The following table summarizes our average impaired loans, broken out by portfolio segment and class of financing receivable for the three months ended March 31, 2014 and 2013:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2014
 
2013
Average impaired loans:
 
 
 
 
Commercial loans:
 
 
 
 
Software
 
$
14,677

 
$
4,114

Hardware
 
16,020

 
23,632

Life science
 
1,022

 
314

Premium wine
 
1,433

 
4,336

Other
 
1,777

 
5,218

Total commercial loans
 
34,929

 
37,614

Consumer loans:
 
 
 
 
Real estate secured loans
 
237

 
2,676

Other consumer loans
 
489

 
1,129

Total consumer loans
 
726

 
3,805

Total average impaired loans
 
$
35,655

 
$
41,419
Activity in Allowance for Loan Losses Broken out by Portfolio Segment
The following tables summarize the activity relating to our allowance for loan losses for the three months ended March 31, 2014 and 2013, broken out by portfolio segment:
Three months ended March 31, 2014 (dollars in thousands)
 
Beginning Balance December 31, 2013
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance March 31, 2014
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
64,084

 
$
(8,010
)
 
$
114

 
$
(947
)
 
$
55,241

Hardware
 
36,553

 
(12,175
)
 
775

 
83

 
25,236

Venture capital/private equity
 
16,385

 
—

 
—

 
1,291

 
17,676

Life science
 
11,926

 
(681
)
 
98

 
131

 
11,474

Premium wine
 
3,914

 
—

 
219

 
(396
)
 
3,737

Other
 
3,680

 
(284
)
 
—

 
645

 
4,041

Total commercial loans
 
136,542

 
(21,150
)
 
1,206

 
807

 
117,405

Consumer loans
 
6,344

 
—

 
106

 
(313
)
 
6,137

Total allowance for loan losses
 
$
142,886

 
$
(21,150
)
 
$
1,312

 
$
494

 
$
123,542


Three months ended March 31, 2013 (dollars in thousands)
 
Beginning Balance December 31, 2012
 
Charge-offs
 
Recoveries
 
Provision for(Reduction of)
 Loan Losses
 
Ending Balance March 31, 2013
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
42,648

 
$
(1,518
)
 
$
242

 
$
3,638

 
$
45,010

Hardware
 
29,761

 
(1,997
)
 
446

 
(341
)
 
27,869

Venture capital/private equity
 
9,963

 
—

 
—

 
519

 
10,482

Life science
 
13,606

 
(2,070
)
 
203

 
2,207

 
13,946

Premium wine
 
3,523

 
—

 
90

 
86

 
3,699

Other
 
3,912

 
(41
)
 
6

 
98

 
3,975

Total commercial loans
 
103,413

 
(5,626
)
 
987

 
6,207

 
104,981

Consumer loans
 
7,238

 
—

 
380

 
(394
)
 
7,224

Total allowance for loan losses
 
$
110,651

 
$
(5,626
)
 
$
1,367

 
$
5,813

 
$
112,205
Allowance for Loan Losses Individually and Collectively Evaluated for Impairment
The following table summarizes the allowance for loan losses individually and collectively evaluated for impairment as of March 31, 2014 and December 31, 2013, broken out by portfolio segment:
 
 
March 31, 2014
 
December 31, 2013
 
 
Individually Evaluated for  
Impairment
 
Collectively Evaluated for  
Impairment
 
Individually Evaluated for  
Impairment
 
Collectively Evaluated for  
Impairment
(Dollars in thousands)
 
Allowance for loan losses
Recorded investment in loans
 
Allowance for loan losses
Recorded investment in loans
 
Allowance for loan losses
Recorded investment in loans
 
Allowance for loan losses
Recorded investment in loans
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
$
4,652

$
11,761

 
$
50,589

$
4,114,062

 
$
11,261

$
27,617

 
$
52,823

$
4,075,019

Hardware
 
979

7,886

 
24,257

1,185,297

 
9,673

19,667

 
26,880

1,193,365

Venture capital/private equity
 
—

—

 
17,676

2,201,243

 
19

39

 
16,366

2,386,015

Life science
 
231

909

 
11,243

1,170,349

 
—

1,278

 
11,926

1,168,942

Premium wine
 
—

1,408

 
3,737

699,971

 
—

1,442

 
3,914

663,392

Other
 
802

2,339

 
3,239

420,219

 
156

690

 
3,524

395,954

Total commercial loans
 
6,664

24,303

 
110,741

9,791,141

 
21,109

50,733

 
115,433

9,882,687

Consumer loans
 
112

686

 
6,025

1,017,778

 
168

915

 
6,176

972,051

Total
 
$
6,776

$
24,989

 
$
116,766

$
10,808,919

 
$
21,277

$
51,648

 
$
121,609

$
10,854,738
Credit Quality Indicators, Broken out by Portfolio Segment and Class of Financing Receivables
The following table summarizes the credit quality indicators, broken out by portfolio segment and class of financing receivables as of March 31, 2014 and December 31, 2013:
(Dollars in thousands)
 
Pass
 
  Performing  
  (Criticized)  
 
Impaired  
 
Total
March 31, 2014:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
3,859,696

 
$
292,978

 
$
11,761

 
$
4,164,435

Hardware
 
1,023,405

 
173,059

 
7,886

 
1,204,350

Venture capital/private equity
 
2,221,772

 
—

 
—

 
2,221,772

Life science
 
1,097,180

 
84,130

 
909

 
1,182,219

Premium wine
 
693,351

 
9,019

 
1,408

 
703,778

Other
 
411,108

 
12,337

 
2,339

 
425,784

Total commercial loans
 
9,306,512

 
571,523

 
24,303

 
9,902,338

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
912,790

 
3,753

 
236

 
916,779

Other consumer loans
 
97,982

 
2,933

 
450

 
101,365

Total consumer loans
 
1,010,772

 
6,686

 
686

 
1,018,144

Total gross loans
 
$
10,317,284

 
$
578,209

 
$
24,989

 
$
10,920,482

December 31, 2013:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
3,875,043

 
$
238,697

 
$
27,618

 
$
4,141,358

Hardware
 
995,055

 
209,758

 
19,667

 
1,224,480

Venture capital/private equity
 
2,408,386

 
—

 
40

 
2,408,426

Life science
 
1,091,993

 
87,995

 
1,278

 
1,181,266

Premium wine
 
652,747

 
13,008

 
1,442

 
667,197

Other
 
383,602

 
15,536

 
690

 
399,828

Total commercial loans
 
9,406,826

 
564,994

 
50,735

 
10,022,555

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
868,789

 
4,037

 
244

 
873,070

Other consumer loans
 
95,586

 
3,387

 
670

 
99,643

Total consumer loans
 
964,375

 
7,424

 
914

 
972,713

Total gross loans
 
$
10,371,201

 
$
572,418

 
$
51,649

 
$
10,995,268
Summary of Loans Modified in Troubled Debt Restructurings ("TDRs") by Portfolio Segment and Class of Financing Receivables
The following table summarizes our loans modified in TDRs, broken out by portfolio segment and class of financing receivables at March 31, 2014 and December 31, 2013:
(Dollars in thousands)
 
March 31, 2014
 
December 31, 2013
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software
 
$
10,509

 
$
5,860

Hardware
 
7,541

 
13,329

Venture capital/ private equity
 
—

 
77

Premium wine
 
2,058

 
1,442

Other
 
2,674

 
1,055

Total commercial loans
 
22,782

 
21,763

Consumer loans:
 
 
 
 
Other consumer loans
 
450

 
670

Total consumer loans
 
450

 
670

Total
 
$
23,232

 
$
22,433
Recorded Investment in Loans Modified in TDRs
The following table summarizes the recorded investment in loans modified in TDRs, broken out by portfolio segment and class of financing receivable, for modifications made during the three months ended March 31, 2014 and 2013:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2014
 
2013
Loans modified in TDRs during the period:
 
 
 
 
Commercial loans:
 
 
 
 
Software
 
$
9,737

 
$
—

Venture capital/ private equity
 
—

 
821

Life science
 
—

 
454

Premium wine
 
650

 
—

Other
 
1,746

 
—

Total commercial loans
 
12,133

 
1,275

Consumer loans:
 
 
 
 
Other consumer loans
 
—

 
100

Total consumer loans
 
—

 
100

Total loans modified in TDR’s during the period (1)
 
$
12,133

 
$
1,375

 
 
(1)
There were no partial charge-offs on loans classified as TDRs for the three months ended March 31, 2014 or March 31, 2013.
Recorded Investment in Loans Modified in TDRs within Previous 12 months Subsequently Defaulted
The following table summarizes the recorded investment in loans modified in TDRs within the previous 12 months that subsequently defaulted during the three months ended March 31, 2013, broken out by portfolio segment and class of financing receivable. There were no TDRs modified, which defaulted during the three months ended March 31, 2014.
 
 
Three months ended March 31,
(Dollars in thousands)
 
2013
TDRs modified within the previous 12 months that defaulted during the period:
 
 
Commercial loans:
 
 
Hardware
 
$
125

Other
 
2,750

Total commercial loans
 
2,875

Consumer loans
 
247

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
3,122