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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2015
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $115 million and $104 million at September 30, 2015 and December 31, 2014, respectively, is presented in the following table:
(Dollars in thousands)
 
September 30, 2015
 
December 31, 2014
Commercial loans:
 
 
 
 
Software and internet
 
$
5,272,825

 
$
4,954,676

Hardware
 
962,295

 
1,131,006

Private equity/venture capital
 
4,571,102

 
4,582,906

Life science & healthcare
 
1,598,362

 
1,289,904

Premium wine
 
193,712

 
187,568

Other
 
295,550

 
234,551

Total commercial loans
 
12,893,846

 
12,380,611

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
633,248

 
606,753

Consumer loans (2)
 
1,444,067

 
1,118,115

Other
 
38,043

 
39,651

Total real estate secured loans
 
2,115,358

 
1,764,519

Construction loans
 
92,551

 
78,626

Consumer loans
 
212,825

 
160,520

Total loans, net of unearned income (3)
 
$
15,314,580

 
$
14,384,276

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $119 million and $112 million at September 30, 2015 and December 31, 2014, respectively.
(2)
Consumer loans secured by real estate at September 30, 2015 and December 31, 2014 were comprised of the following:
(Dollars in thousands)
 
September 30, 2015
 
December 31, 2014
Loans for personal residence
 
$
1,225,794

 
$
918,629

Loans to eligible employees
 
149,612

 
133,568

Home equity lines of credit
 
68,661

 
65,918

Consumer loans secured by real estate
 
$
1,444,067

 
$
1,118,115


(3)
Included within our total loan portfolio are credit card loans of $186 million and $131 million at September 30, 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 $115 million and $104 million at September 30, 2015 and December 31, 2014, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
(Dollars in thousands)
 
September 30, 2015
 
December 31, 2014
Commercial loans:
 
 
 
 
Software and internet
 
$
5,272,825

 
$
4,954,676

Hardware
 
962,295

 
1,131,006

Private equity/venture capital
 
4,571,102

 
4,582,906

Life science & healthcare
 
1,598,362

 
1,289,904

Premium wine
 
826,960

 
794,321

Other
 
426,144

 
352,828

Total commercial loans
 
13,657,688

 
13,105,641

Consumer loans:
 
 
 
 
Real estate secured loans
 
1,444,067

 
1,118,115

Other consumer loans
 
212,825

 
160,520

Total consumer loans
 
1,656,892

 
1,278,635

Total loans, net of unearned income
 
$
15,314,580

 
$
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 September 30, 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
September 30, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
9,729

 
$
1,168

 
$
169

 
$
11,066

 
$
5,244,198

 
$
169

Hardware
 
620

 
1,021

 
—

 
1,641

 
965,511

 
—

Private equity/venture capital
 
410

 
—

 
—

 
410

 
4,611,543

 
—

Life science & healthcare
 
377

 
729

 
—

 
1,106

 
1,566,185

 
—

Premium wine
 
295

 
—

 
—

 
295

 
827,709

 
—

Other
 
—

 
8

 
—

 
8

 
429,145

 
—

Total commercial loans
 
11,431

 
2,926

 
169

 
14,526

 
13,644,291

 
169

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
—

 
—

 
—

 
1,443,011

 
—

Other consumer loans
 
1,313

 
—

 
—

 
1,313

 
211,339

 
—

Total consumer loans
 
1,313

 
—

 
—

 
1,313

 
1,654,350

 
—

Total gross loans excluding impaired loans
 
12,744

 
2,926

 
169

 
15,839

 
15,298,641

 
169

Impaired loans
 
—

 
1,798

 
8,295

 
10,093

 
105,368

 
—

Total gross loans
 
$
12,744

 
$
4,724

 
$
8,464

 
$
25,932

 
$
15,404,009

 
$
169

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 September 30, 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
September 30, 2015:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
64,792

 
$
—

 
$
64,792

 
$
89,471

Hardware
 
3,586

 
177

 
3,763

 
3,802

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science & healthcare
 
45,389

 
—

 
45,389

 
45,904

Premium wine
 
—

 
1,201

 
1,201

 
1,716

Other
 
157

 
—

 
157

 
157

Total commercial loans
 
113,924

 
1,378

 
115,302

 
141,050

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
159

 
159

 
1,399

Other consumer loans
 
—

 
—

 
—

 
—

Total consumer loans
 
—

 
159

 
159

 
1,399

Total
 
$
113,924

 
$
1,537

 
$
115,461

 
$
142,449

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 and nine months ended September 30, 2015 and 2014:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2015
 
2014
 
2015
 
2014
Average impaired loans:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
77,156

 
$
10,651

 
$
54,543

 
$
13,690

Hardware
 
2,796

 
1,540

 
1,944

 
8,140

Life science & healthcare
 
17,184

 
333

 
6,526

 
636

Premium wine
 
1,213

 
1,364

 
1,245

 
1,398

Other
 
3,132

 
674

 
3,498

 
1,383

Total commercial loans
 
101,481

 
14,562

 
67,756

 
25,247

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
162

 
212

 
180

 
224

Other consumer loans
 
—

 
261

 
55

 
375

Total consumer loans
 
162

 
473

 
235

 
599

Total average impaired loans
 
$
101,643

 
$
15,035

 
$
67,991

 
$
25,846
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 and nine months ended September 30, 2015 and 2014, broken out by portfolio segment:
Three months ended September 30, 2015 (dollars in thousands)
 
Beginning Balance June 30, 2015
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance September 30, 2015
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
106,728

 
$
(24,815
)
 
$
195

 
$
5,958

 
$
88,066

Hardware
 
20,472

 
—

 
240

 
(70
)
 
20,642

Private equity/venture capital
 
29,276

 
—

 
—

 
3,166

 
32,442

Life science & healthcare
 
17,233

 
(117
)
 
50

 
19,793

 
36,959

Premium wine
 
4,409

 
—

 
—

 
253

 
4,662

Other
 
5,894

 
(4,186
)
 
89

 
2,976

 
4,773

Total commercial loans
 
184,012

 
(29,118
)
 
574

 
32,076

 
187,544

Consumer loans
 
8,632

 
—

 
4

 
1,327

 
9,963

Total allowance for loan losses
 
$
192,644

 
$
(29,118
)
 
$
578

 
$
33,403

 
$
197,507


Three months ended September 30, 2014 (dollars in thousands)
 
Beginning Balance June 30, 2014
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance September 30, 2014
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
53,239

 
$
(6,907
)
 
$
790

 
$
11,078

 
$
58,200

Hardware
 
24,780

 
(2,643
)
 
113

 
2,491

 
24,741

Private equity/venture capital
 
19,004

 
—

 
—

 
845

 
19,849

Life science & healthcare
 
10,597

 
—

 
53

 
1,591

 
12,241

Premium wine
 
3,546

 
(35
)
 
—

 
710

 
4,221

Other
 
3,218

 
(1,072
)
 
1,306

 
(530
)
 
2,922

Total commercial loans
 
114,384

 
(10,657
)
 
2,262

 
16,185

 
122,174

Consumer loans
 
6,344

 
—

 
118

 
425

 
6,887

Total allowance for loan losses
 
$
120,728

 
$
(10,657
)
 
$
2,380

 
$
16,610

 
$
129,061



Nine months ended September 30, 2015 (dollars in thousands)
 
Beginning Balance December 31, 2014
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance September 30, 2015
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
80,981

 
$
(26,980
)
 
$
1,239

 
$
32,826

 
$
88,066

Hardware
 
25,860

 
(4,049
)
 
3,049

 
(4,218
)
 
20,642

Private equity/venture capital
 
27,997

 
—

 
—

 
4,445

 
32,442

Life science & healthcare
 
15,208

 
(3,336
)
 
129

 
24,958

 
36,959

Premium wine
 
4,473

 
—

 
7

 
182

 
4,662

Other
 
3,253

 
(4,974
)
 
559

 
5,935

 
4,773

Total commercial loans
 
157,772

 
(39,339
)
 
4,983

 
64,128

 
187,544

Consumer loans
 
7,587

 
—

 
136

 
2,240

 
9,963

Total allowance for loan losses
 
$
165,359

 
$
(39,339
)
 
$
5,119

 
$
66,368

 
$
197,507

Nine months ended September 30, 2014 (dollars in thousands)
 
Beginning Balance December 31, 2013
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance September 30, 2014
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
64,084

 
$
(18,932
)
 
$
1,023

 
$
12,025

 
$
58,200

Hardware
 
36,553

 
(15,230
)
 
2,070

 
1,348

 
24,741

Private equity/venture capital
 
16,385

 
—

 
—

 
3,464

 
19,849

Life science & healthcare
 
11,926

 
(930
)
 
341

 
904

 
12,241

Premium wine
 
3,914

 
(35
)
 
238

 
104

 
4,221

Other
 
3,680

 
(3,062
)
 
1,316

 
988

 
2,922

Total commercial loans
 
136,542

 
(38,189
)
 
4,988

 
18,833

 
122,174

Consumer loans
 
6,344

 
—

 
325

 
218

 
6,887

Total allowance for loan losses
 
$
142,886

 
$
(38,189
)
 
$
5,313

 
$
19,051

 
$
129,061
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 September 30, 2015 and December 31, 2014, broken out by portfolio segment:
 
 
September 30, 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
 
$
25,260

 
$
64,792

 
$
62,806

 
$
5,208,033

 
$
13,695

 
$
33,287

 
$
67,286

 
$
4,921,389

Hardware
 
1,100

 
3,763

 
19,542

 
958,532

 
1,133

 
2,521

 
24,727

 
1,128,485

Private equity/venture capital
 
—

 
—

 
32,442

 
4,571,102

 
—

 
—

 
27,997

 
4,582,906

Life science & healthcare
 
19,739

 
45,389

 
17,220

 
1,552,973

 
121

 
475

 
15,087

 
1,289,429

Premium wine
 
—

 
1,201

 
4,662

 
825,759

 
—

 
1,304

 
4,473

 
793,017

Other
 
157

 
157

 
4,616

 
425,987

 
71

 
233

 
3,182

 
352,595

Total commercial loans
 
46,256

 
115,302

 
141,288

 
13,542,386

 
15,020

 
37,820

 
142,752

 
13,067,821

Consumer loans
 
—

 
159

 
9,963

 
1,656,733

 
31

 
317

 
7,556

 
1,278,318

Total
 
$
46,256

 
$
115,461

 
$
151,251

 
$
15,199,119

 
$
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 September 30, 2015 and December 31, 2014:
(Dollars in thousands)
 
Pass
 
  Performing  
  (Criticized)  
 
Impaired  
 
Total
September 30, 2015:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
4,802,522

 
$
452,742

 
$
64,792

 
$
5,320,056

Hardware
 
834,067

 
133,085

 
3,763

 
970,915

Private equity/venture capital
 
4,611,953

 
—

 
—

 
4,611,953

Life science & healthcare
 
1,446,972

 
120,319

 
45,389

 
1,612,680

Premium wine
 
804,411

 
23,593

 
1,201

 
829,205

Other
 
417,459

 
11,694

 
157

 
429,310

Total commercial loans
 
12,917,384

 
741,433

 
115,302

 
13,774,119

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,433,926

 
9,085

 
159

 
1,443,170

Other consumer loans
 
211,366

 
1,286

 
—

 
212,652

Total consumer loans
 
1,645,292

 
10,371

 
159

 
1,655,822

Total gross loans
 
$
14,562,676

 
$
751,804

 
$
115,461

 
$
15,429,941

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 September 30, 2015 and December 31, 2014:
(Dollars in thousands)
 
September 30, 2015
 
December 31, 2014
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
57,766

 
$
3,784

Hardware
 
2,301

 
1,118

Life science & healthcare
 
29,529

 
—

Premium wine
 
1,202

 
1,891

Other
 
518

 
233

Total commercial loans
 
91,316

 
7,026

Consumer loans:
 
 
 
 
Other consumer loans
 
—

 
125

Total consumer loans
 
—

 
125

Total
 
$
91,316

 
$
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 and nine months ended September 30, 2015 and 2014:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2015

2014
 
2015
 
2014
Loans modified in TDRs during the period:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet (1)
 
$
51,749

 
$
496

 
$
57,766

 
$
7,848

Hardware
 
—

 
—

 
2,031

 
—

Life science & healthcare
 
29,530

 
—

 
29,530

 
—

Premium wine
 
—

 
—

 
—

 
614

Other
 
518

 
—

 
518

 
—

Total loans modified in TDRs during the period (1)
 
$
81,797

 
$
496

 
$
89,845

 
$
8,462

 
 
(1)
There were partial charge-offs of two loans classified as TDRs in our software and internet loan portfolio for $22.4 million during the three and nine months ended September 30, 2015 and no partial charge-offs during the three and nine months ended September 30, 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 and nine months ended September 30, 2015. There were no loans modified in TDRs within the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2014.
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2015
 
2015
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
11,107

 
$
17,124

Hardware
 
2,031

 
2,031

Life science & healthcare
 
958

 
958

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
14,096

 
$
20,113