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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2015
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $107 million and $104 million at March 31, 2015 and December 31, 2014, respectively, is presented in the following table:
(Dollars in thousands)
 
March 31, 2015
 
December 31, 2014
Commercial loans:
 
 
 
 
Software and internet
 
$
4,871,574

 
$
4,954,676

Hardware
 
1,067,386

 
1,131,006

Private equity/venture capital
 
4,508,670

 
4,582,906

Life science & healthcare
 
1,399,449

 
1,289,904

Premium wine
 
186,070

 
187,568

Other
 
289,010

 
234,551

Total commercial loans
 
12,322,159

 
12,380,611

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
613,114

 
606,753

Consumer loans (2)
 
1,209,153

 
1,118,115

Other
 
39,422

 
39,651

Total real estate secured loans
 
1,861,689

 
1,764,519

Construction loans
 
85,684

 
78,626

Consumer loans
 
170,042

 
160,520

Total loans, net of unearned income (3)
 
$
14,439,574

 
$
14,384,276

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $108 million and $112 million at March 31, 2015 and December 31, 2014, respectively.
(2)
Consumer loans secured by real estate at March 31, 2015 and December 31, 2014 were comprised of the following:
(Dollars in thousands)
 
March 31, 2015
 
December 31, 2014
Loans for personal residence
 
$
1,001,125

 
$
918,629

Loans to eligible employees
 
139,761

 
133,568

Home equity lines of credit
 
68,267

 
65,918

Consumer loans secured by real estate
 
$
1,209,153

 
$
1,118,115


(3)
Included within our total loan portfolio are credit card loans of $154 million and $131 million at March 31, 2015 and December 31, 2014, 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 $107 million and $104 million at March 31, 2015 and December 31, 2014, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
(Dollars in thousands)
 
March 31, 2015
 
December 31, 2014
Commercial loans:
 
 
 
 
Software and internet
 
$
4,871,574

 
$
4,954,676

Hardware
 
1,067,386

 
1,131,006

Private equity/venture capital
 
4,508,670

 
4,582,906

Life science & healthcare
 
1,399,449

 
1,289,904

Premium wine
 
799,184

 
794,321

Other
 
414,116

 
352,828

Total commercial loans
 
13,060,379

 
13,105,641

Consumer loans:
 
 
 
 
Real estate secured loans
 
1,209,153

 
1,118,115

Other consumer loans
 
170,042

 
160,520

Total consumer loans
 
1,379,195

 
1,278,635

Total loans, net of unearned income
 
$
14,439,574

 
$
14,384,276
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, 2015 and December 31, 2014:
(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, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
1,970

 
$
162

 
$
160

 
$
2,292

 
$
4,876,739

 
$
160

Hardware
 
298

 
9,219

 
—

 
9,517

 
1,066,598

 
—

Private equity/venture capital
 
11,462

 
—

 
—

 
11,462

 
4,536,175

 
—

Life science & healthcare
 
3,768

 
—

 
1,689

 
5,457

 
1,405,856

 
1,689

Premium wine
 
—

 
—

 
—

 
—

 
800,197

 
—

Other
 
1,074

 
—

 
—

 
1,074

 
410,752

 
—

Total commercial loans
 
18,572

 
9,381

 
1,849

 
29,802

 
13,096,317

 
1,849

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
415

 
—

 
1,250

 
1,665

 
1,206,762

 
1,250

Other consumer loans
 
410

 
625

 
—

 
1,035

 
168,782

 
—

Total consumer loans
 
825

 
625

 
1,250

 
2,700

 
1,375,544

 
1,250

Total gross loans excluding impaired loans
 
19,397

 
10,006

 
3,099

 
32,502

 
14,471,861

 
3,099

Impaired loans
 
313

 
5,855

 
21,920

 
28,088

 
14,294

 
—

Total gross loans
 
$
19,710

 
$
15,861

 
$
25,019

 
$
60,590

 
$
14,486,155

 
$
3,099

December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
10,989

 
$
1,627

 
$
52

 
$
12,668

 
$
4,950,291

 
$
52

Hardware
 
13,424

 
126

 
—

 
13,550

 
1,124,423

 
—

Private equity/venture capital
 
40,773

 
—

 
—

 
40,773

 
4,580,526

 
—

Life science & healthcare
 
738

 
786

 
—

 
1,524

 
1,298,728

 
—

Premium wine
 
—

 
—

 
—

 
—

 
795,345

 
—

Other
 
178

 
3

 
—

 
181

 
354,939

 
—

Total commercial loans
 
66,102

 
2,542

 
52

 
68,696

 
13,104,252

 
52

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,592

 
341

 
1,250

 
3,183

 
1,114,286

 
1,250

Other consumer loans
 
—

 
—

 
—

 
—

 
160,212

 
—

Total consumer loans
 
1,592

 
341

 
1,250

 
3,183

 
1,274,498

 
1,250

Total gross loans excluding impaired loans
 
67,694

 
2,883

 
1,302

 
71,879

 
14,378,750

 
1,302

Impaired loans
 
598

 
1,293

 
22,320

 
24,211

 
13,926

 
—

Total gross loans
 
$
68,292

 
$
4,176

 
$
23,622

 
$
96,090

 
$
14,392,676

 
$
1,302
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, 2015 and December 31, 2014:
(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, 2015:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
34,716

 
$
—

 
$
34,716

 
$
35,027

Hardware
 
510

 
—

 
510

 
525

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science & healthcare
 
250

 
—

 
250

 
2,453

Premium wine
 
—

 
1,270

 
1,270

 
1,734

Other
 
5,356

 
—

 
5,356

 
5,360

Total commercial loans
 
40,832

 
1,270

 
42,102

 
45,099

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
30

 
180

 
210

 
1,438

Other consumer loans
 
70

 
—

 
70

 
254

Total consumer loans
 
100

 
180

 
280

 
1,692

Total
 
$
40,932

 
$
1,450

 
$
42,382

 
$
46,791

December 31, 2014:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
33,287

 
$
—

 
$
33,287

 
$
34,218

Hardware
 
1,403

 
1,118

 
2,521

 
2,535

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science & healthcare
 
475

 
—

 
475

 
2,453

Premium wine
 
—

 
1,304

 
1,304

 
1,743

Other
 
233

 
—

 
233

 
233

Total commercial loans
 
35,398

 
2,422

 
37,820

 
41,182

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
192

 
192

 
1,412

Other consumer loans
 
125

 
—

 
125

 
305

Total consumer loans
 
125

 
192

 
317

 
1,717

Total
 
$
35,523

 
$
2,614

 
$
38,137

 
$
42,899
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, 2015 and 2014:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2015
 
2014
Average impaired loans:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
33,725

 
$
14,677

Hardware
 
1,643

 
16,020

Life science & healthcare
 
400

 
1,022

Premium wine
 
1,282

 
1,433

Other
 
2,139

 
1,777

Total commercial loans
 
39,189

 
34,929

Consumer loans:
 
 
 
 
Real estate secured loans
 
195

 
237

Other consumer loans
 
88

 
489

Total consumer loans
 
283

 
726

Total average impaired loans
 
$
39,472

 
$
35,655
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, 2015 and 2014, broken out by portfolio segment:
Three months ended March 31, 2015 (dollars in thousands)
 
Beginning Balance December 31, 2014
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance March 31, 2015
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
80,981

 
$
(1,403
)
 
$
447

 
$
2,067

 
$
82,092

Hardware
 
25,860

 
(3,210
)
 
928

 
(2,320
)
 
21,258

Private equity/venture capital
 
27,997

 
—

 
—

 
2,840

 
30,837

Life science & healthcare
 
15,208

 
(225
)
 
34

 
306

 
15,323

Premium wine
 
4,473

 
—

 
—

 
30

 
4,503

Other
 
3,253

 
(649
)
 
10

 
3,537

 
6,151

Total commercial loans
 
157,772

 
(5,487
)
 
1,419

 
6,460

 
160,164

Consumer loans
 
7,587

 
—

 
132

 
(8
)
 
7,711

Total allowance for loan losses
 
$
165,359

 
$
(5,487
)
 
$
1,551

 
$
6,452

 
$
167,875


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 and internet
 
$
64,084

 
$
(8,010
)
 
$
114

 
$
(947
)
 
$
55,241

Hardware
 
36,553

 
(12,175
)
 
775

 
83

 
25,236

Private equity/venture capital
 
16,385

 
—

 
—

 
1,291

 
17,676

Life science & healthcare
 
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
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, 2015 and December 31, 2014, broken out by portfolio segment:
 
 
March 31, 2015
 
December 31, 2014
 
 
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 and internet
 
$
20,942

 
$
34,716

 
$
61,150

 
$
4,836,858

 
$
13,695

 
$
33,287

 
$
67,286

 
$
4,921,389

Hardware
 
12

 
510

 
21,246

 
1,066,876

 
1,133

 
2,521

 
24,727

 
1,128,485

Private equity/venture capital
 
—

 
—

 
30,837

 
4,508,670

 
—

 
—

 
27,997

 
4,582,906

Life science & healthcare
 
63

 
250

 
15,260

 
1,399,199

 
121

 
475

 
15,087

 
1,289,429

Premium wine
 
—

 
1,270

 
4,503

 
797,914

 
—

 
1,304

 
4,473

 
793,017

Other
 
2,705

 
5,356

 
3,446

 
408,760

 
71

 
233

 
3,182

 
352,595

Total commercial loans
 
23,722

 
42,102

 
136,442

 
13,018,277

 
15,020

 
37,820

 
142,752

 
13,067,821

Consumer loans
 
100

 
280

 
7,611

 
1,378,915

 
31

 
317

 
7,556

 
1,278,318

Total
 
$
23,822

 
$
42,382

 
$
144,053

 
$
14,397,192

 
$
15,051

 
$
38,137

 
$
150,308

 
$
14,346,139
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, 2015 and December 31, 2014:
(Dollars in thousands)
 
Pass
 
  Performing  
  (Criticized)  
 
Impaired  
 
Total
March 31, 2015:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
4,483,199

 
$
395,832

 
$
34,716

 
$
4,913,747

Hardware
 
874,295

 
201,820

 
510

 
1,076,625

Private equity/venture capital
 
4,543,600

 
4,037

 
—

 
4,547,637

Life science & healthcare
 
1,282,275

 
129,038

 
250

 
1,411,563

Premium wine
 
780,710

 
19,487

 
1,270

 
801,467

Other
 
404,481

 
7,345

 
5,356

 
417,182

Total commercial loans
 
12,368,560

 
757,559

 
42,102

 
13,168,221

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,199,907

 
8,520

 
210

 
1,208,637

Other consumer loans
 
165,914

 
3,903

 
70

 
169,887

Total consumer loans
 
1,365,821

 
12,423

 
280

 
1,378,524

Total gross loans
 
$
13,734,381

 
$
769,982

 
$
42,382

 
$
14,546,745

December 31, 2014:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
4,611,253

 
$
351,706

 
$
33,287

 
$
4,996,246

Hardware
 
945,998

 
191,975

 
2,521

 
1,140,494

Private equity/venture capital
 
4,615,231

 
6,068

 
—

 
4,621,299

Life science & healthcare
 
1,165,266

 
134,986

 
475

 
1,300,727

Premium wine
 
774,962

 
20,383

 
1,304

 
796,649

Other
 
346,153

 
8,967

 
233

 
355,353

Total commercial loans
 
12,458,863

 
714,085

 
37,820

 
13,210,768

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,112,396

 
5,073

 
192

 
1,117,661

Other consumer loans
 
158,162

 
2,050

 
125

 
160,337

Total consumer loans
 
1,270,558

 
7,123

 
317

 
1,277,998

Total gross loans
 
$
13,729,421

 
$
721,208

 
$
38,137

 
$
14,488,766
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, 2015 and December 31, 2014:
(Dollars in thousands)
 
March 31, 2015
 
December 31, 2014
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
2,707

 
$
3,784

Hardware
 
4,510

 
1,118

Premium wine
 
1,830

 
1,891

Other
 
191

 
233

Total commercial loans
 
9,238

 
7,026

Consumer loans:
 
 
 
 
Other consumer loans
 
1,350

 
125

Total consumer loans
 
1,350

 
125

Total
 
$
10,588

 
$
7,151
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, 2015 and 2014:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2015

2014
Loans modified in TDRs during the period:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
—

 
$
9,737

Hardware
 
4,000

 
—

Premium wine
 
—

 
650

Other
 
—

 
1,746

Total commercial loans
 
4,000

 
12,133

Consumer loans:
 
 
 
 
Real estate secured loans
 
1,280

 
—

Total consumer loans
 
1,280

 
—

Total loans modified in TDRs during the period (1)
 
$
5,280

 
$
12,133

 
 
(1)
There were no partial charge-offs on loans classified as TDRs during the three months ended March 31, 2015 or March 31, 2014.
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, 2015. There were no TDRs modified, which defaulted during the three months ended March 31, 2014.
 
 
Three months ended March 31,
(Dollars in thousands)
 
2015
TDRs modified within the previous 12 months that defaulted during the period:
 
 
Consumer loans:
 
 
Real estate secured loans
 
$
30

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
30