XML 58 R42.htm IDEA: XBRL DOCUMENT v3.3.1.900
Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $115 million and $104 million at December 31, 2015 and 2014, respectively, is presented in the following table:
 
 
December 31,
(Dollars in thousands)
 
2015
 
2014
Commercial loans:
 
 
 
 
Software and internet
 
$
5,437,915

 
$
4,954,676

Hardware
 
1,071,528

 
1,131,006

Private equity/venture capital
 
5,467,577

 
4,582,906

Life science/healthcare
 
1,710,642

 
1,289,904

Premium wine
 
201,175

 
187,568

Other
 
312,278

 
234,551

Total commercial loans
 
14,201,115

 
12,380,611

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
646,120

 
606,753

Consumer loans (2)
 
1,544,440

 
1,118,115

Other
 
44,830

 
39,651

Total real estate secured loans
 
2,235,390

 
1,764,519

Construction loans
 
78,682

 
78,626

Consumer loans
 
226,883

 
160,520

Total loans, net of unearned income (3)
 
$
16,742,070

 
$
14,384,276

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $121 million and $112 million at December 31, 2015 and 2014, respectively.
(2)
Consumer loans secured by real estate at December 31, 2015 and 2014 were comprised of the following:
 
 
December 31,
(Dollars in thousands)
 
2015
 
2014
Loans for personal residence
 
$
1,312,818

 
$
918,629

Loans to eligible employees
 
156,001

 
133,568

Home equity lines of credit
 
75,621

 
65,918

Consumer loans secured by real estate
 
$
1,544,440

 
$
1,118,115


(3)
Included within our total loan portfolio are credit card loans of $177 million and $131 million at December 31, 2015 and 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 December 31, 2015 and December 31, 2014, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
 
 
December 31,
(Dollars in thousands)
 
2015
 
2014
Commercial loans:
 
 
 
 
Software and internet
 
$
5,437,915

 
$
4,954,676

Hardware
 
1,071,528

 
1,131,006

Private equity/venture capital
 
5,467,577

 
4,582,906

Life science/healthcare
 
1,710,642

 
1,289,904

Premium wine
 
847,295

 
794,321

Other
 
435,790

 
352,828

Total commercial loans
 
14,970,747

 
13,105,641

Consumer loans:
 
 
 
 
Real estate secured loans
 
1,544,440

 
1,118,115

Other consumer loans
 
226,883

 
160,520

Total consumer loans
 
1,771,323

 
1,278,635

Total loans, net of unearned income
 
$
16,742,070

 
$
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 December 31, 2015 and 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
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
3,384

 
$
6,638

 
$
—

 
$
10,022

 
$
5,371,222

 
$
—

Hardware
 
1,061

 
66

 
—

 
1,127

 
1,051,368

 
—

Private equity/venture capital
 
—

 
17

 
—

 
17

 
5,511,912

 
—

Life science/healthcare
 
853

 
6,537

 
—

 
7,390

 
1,665,801

 
—

Premium wine
 
16

 
65

 
—

 
81

 
847,249

 
—

Other
 
14

 
22

 
—

 
36

 
438,313

 
—

Total commercial loans
 
5,328

 
13,345

 
—

 
18,673

 
14,885,865

 
—

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
4,911

 
865

 
—

 
5,776

 
1,537,421

 
—

Other consumer loans
 
228

 
115

 
—

 
343

 
226,369

 
—

Total consumer loans
 
5,139

 
980

 
—

 
6,119

 
1,763,790

 
—

Total gross loans excluding impaired loans
 
10,467

 
14,325

 
—

 
24,792

 
16,649,655

 
—

Impaired loans
 
333

 
—

 
7,221

 
7,554

 
175,130

 
—

Total gross loans
 
$
10,800

 
$
14,325

 
$
7,221

 
$
32,346

 
$
16,824,785

 
$
—

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 for the years ended December 31, 2015 and 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   
December 31, 2015:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
100,866

 
$
—

 
$
100,866

 
$
125,494

Hardware
 
27,736

 
—

 
27,736

 
27,869

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science/healthcare
 
50,429

 
925

 
51,354

 
55,310

Premium wine
 
898

 
1,167

 
2,065

 
2,604

Other
 
520

 
—

 
520

 
520

Total commercial loans
 
180,449

 
2,092

 
182,541

 
211,797

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
143

 
—

 
143

 
1,393

Other consumer loans
 
—

 
—

 
—

 
—

Total consumer loans
 
143

 
—

 
143

 
1,393

Total
 
$
180,592

 
$
2,092

 
$
182,684

 
$
213,190

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 and the related interest income while impaired, broken out by portfolio segment and class of financing receivable during 2015, 2014 and 2013:
Year ended December 31,
 
Average impaired loans
 
Interest income on impaired loans
(Dollars in thousands)
 
2015

2014

2013
 
2015
 
2014 (1)
 
2013 (1)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
63,825

 
$
14,357

 
$
6,254

 
$
344

 
$
—

 
$
—

Hardware
 
8,854

 
6,634

 
24,508

 
574

 
—

 
—

Private equity/venture capital
 
—

 
—

 
37

 
—

 
—

 
—

Life science/healthcare
 
18,083

 
516

 
334

 
132

 
—

 
—

Premium wine
 
1,455

 
1,381

 
2,210

 
12

 
—

 
—

Other
 
2,758

 
1,088

 
3,601

 
8

 
—

 
—

Total commercial loans
 
94,975

 
23,976

 
36,944

 
1,070

 
—

 
—

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
172

 
218

 
2,957

 
—

 
—

 
—

Other consumer loans
 
41

 
322

 
945

 
—

 
—

 
—

Total consumer loans
 
213

 
540

 
3,902

 
—

 
—

 
—

Total average impaired loans
 
$
95,188

 
$
24,516

 
$
40,846

 
$
1,070

 
$
—

 
$
—

 
 
(1)
In 2014 and 2013 all impaired loans were nonaccrual loans and no interest income was recognized.
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 2015, 2014, and 2013 broken out by portfolio segment:
Year ended December 31, 2015
 
Beginning Balance December 31, 2014
 
Charge-offs
 
Recoveries
 
Provision for (Reduction of) Loan Losses
 
Ending Balance December 31, 2015
(Dollars in thousands)
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
80,981

 
$
(33,246
)
 
$
1,621

 
$
53,689

 
$
103,045

Hardware
 
25,860

 
(5,145
)
 
3,332

 
(962
)
 
23,085

Private equity/venture capital
 
27,997

 
—

 
—

 
7,285

 
35,282

Life science/healthcare
 
15,208

 
(7,291
)
 
277

 
28,382

 
36,576

Premium wine
 
4,473

 
—

 
7

 
725

 
5,205

Other
 
3,253

 
(4,990
)
 
193

 
5,796

 
4,252

Total commercial loans
 
157,772

 
(50,672
)
 
5,430

 
94,915

 
207,445

Consumer loans
 
7,587

 
(296
)
 
163

 
2,714

 
10,168

Total allowance for loan losses
 
$
165,359

 
$
(50,968
)
 
$
5,593

 
$
97,629

 
$
217,613

Year ended December 31, 2014
 
Beginning Balance December 31, 2013
 
Charge-offs
 
Recoveries
 
Provision for Loan Losses
 
Ending Balance December 31, 2014
(Dollars in thousands)
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
64,084

 
$
(21,031
)
 
$
1,425

 
$
36,503

 
$
80,981

Hardware
 
36,553

 
(15,265
)
 
2,238

 
2,334

 
25,860

Private equity/venture capital
 
16,385

 
—

 
—

 
11,612

 
27,997

Life science/healthcare
 
11,926

 
(2,951
)
 
374

 
5,859

 
15,208

Premium wine
 
3,914

 
(35
)
 
240

 
354

 
4,473

Other
 
3,680

 
(3,886
)
 
1,499

 
1,960

 
3,253

Total commercial loans
 
136,542

 
(43,168
)
 
5,776

 
58,622

 
157,772

Consumer loans
 
6,344

 
—

 
379

 
864

 
7,587

Total allowance for loan losses
 
$
142,886

 
$
(43,168
)
 
$
6,155

 
$
59,486

 
$
165,359


    
Year ended December 31, 2013
 
Beginning Balance December 31, 2012
 
Charge-offs
 
Recoveries
 
Provision for (Reduction of) Loan Losses
 
Ending Balance December 31, 2013
(Dollars in thousands)
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
42,648

 
$
(8,861
)
 
$
1,934

 
$
28,363

 
$
64,084

Hardware
 
29,761

 
(18,819
)
 
2,677

 
22,934

 
36,553

Private equity/venture capital
 
9,963

 
—

 
—

 
6,422

 
16,385

Life science/healthcare
 
13,606

 
(6,010
)
 
1,860

 
2,470

 
11,926

Premium wine
 
3,523

 
—

 
170

 
221

 
3,914

Other
 
3,912

 
(8,107
)
 
2,995

 
4,880

 
3,680

Total commercial loans
 
103,413

 
(41,797
)
 
9,636

 
65,290

 
136,542

Consumer loans
 
7,238

 
(869
)
 
1,572

 
(1,597
)
 
6,344

Total allowance for loan losses
 
$
110,651

 
$
(42,666
)
 
$
11,208

 
$
63,693

 
$
142,886
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 December 31, 2015 and 2014, broken out by portfolio segment:
 
 
December 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
 
$
34,098

 
$
100,866

 
$
68,947

 
$
5,337,049

 
$
13,695

 
$
33,287

 
$
67,286

 
$
4,921,389

Hardware
 
3,160

 
27,736

 
19,925

 
1,043,792

 
1,133

 
2,521

 
24,727

 
1,128,485

Private equity/venture capital
 
—

 
—

 
35,282

 
5,467,577

 
—

 
—

 
27,997

 
4,582,906

Life science/healthcare
 
20,230

 
51,354

 
16,346

 
1,659,288

 
121

 
475

 
15,087

 
1,289,429

Premium wine
 
90

 
2,065

 
5,115

 
845,230

 
—

 
1,304

 
4,473

 
793,017

Other
 
52

 
520

 
4,200

 
435,270

 
71

 
233

 
3,182

 
352,595

Total commercial loans
 
57,630

 
182,541

 
149,815

 
14,788,206

 
15,020

 
37,820

 
142,752

 
13,067,821

Consumer loans
 
143

 
143

 
10,025

 
1,771,180

 
31

 
317

 
7,556

 
1,278,318

Total
 
$
57,773

 
$
182,684

 
$
159,840

 
$
16,559,386

 
$
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 December 31, 2015 and 2014:
(Dollars in thousands)
 
Pass
 
  Performing 
(Criticized)  
 
Performing Impaired 
(Criticized)
 
Nonperforming Impaired (Nonaccrual)
 
Total
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
4,933,179

 
$
448,065

 
$
23,321

 
$
77,545

 
$
5,482,110

Hardware
 
955,675

 
96,820

 
27,306

 
430

 
1,080,231

Private equity/venture capital
 
5,474,929

 
37,000

 
—

 
—

 
5,511,929

Life science/healthcare
 
1,544,555

 
128,636

 
7,247

 
44,107

 
1,724,545

Premium wine
 
825,058

 
22,272

 
898

 
1,167

 
849,395

Other
 
429,481

 
8,868

 
520

 
—

 
438,869

Total commercial loans
 
14,162,877

 
741,661

 
59,292


123,249

 
15,087,079

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,539,468

 
3,729

 
—

 
143

 
1,543,340

Other consumer loans
 
224,601

 
2,111

 
—

 
—

 
226,712

Total consumer loans
 
1,764,069

 
5,840

 
—

 
143

 
1,770,052

Total gross loans
 
$
15,926,946

 
$
747,501

 
$
59,292

 
$
123,392

 
$
16,857,131

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 December 31, 2015 and 2014:
 
 
December 31,
(Dollars in thousands)
 
2015
 
2014
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
56,790

 
$
3,784

Hardware
 
473

 
1,118

Life science/healthcare
 
51,878

 
—

Premium wine
 
2,065

 
1,891

Other
 
519

 
233

Total commercial loans
 
111,725

 
7,026

Consumer loans:
 
 
 
 
Other consumer loans
 
—

 
125

Total consumer loans
 
—

 
125

Total
 
$
111,725

 
$
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 2015, 2014, and 2013:
 
 
Year ended December 31,
(Dollars in thousands)
 
2015
 
2014
 
2013
Loans modified in TDRs during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software and internet
 
$
56,790

 
$
1,033

 
$
4,932

Hardware
 
286

 
1,118

 
8,143

Private equity/venture capital
 
—

 
—

 
77

Life science/healthcare
 
51,878

 
—

 
—

Premium wine
 
898

 
587

 
—

Other
 
519

 
—

 
690

Total commercial loans
 
110,371

 
2,738

 
13,842

Consumer loans:
 
 
 
 
 
 
Other consumer loans
 
—

 
—

 
6

Total consumer loans
 
—

 
—

 
6

Total loans modified in TDRs during the period (1)
 
$
110,371

 
$
2,738

 
$
13,848

 
 
(1)
During 2015 we had $23.5 million of partial charge-offs on loans classified as TDRs. We did not have any partial charge-offs in 2014 and in 2013 we had partial charge-offs of $11.1 million.
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 their respective periods, broken out by portfolio segment and class of financing receivable. During the 2014 year, there were no TDRs modified within the previous 12 months that defaulted.
 
 
December 31,
(Dollars in thousands)
 
2015
 
2014
 
2013
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software and internet
 
$
16,804

 
$
—

 
$
—

Hardware
 
286

 
—

 
1,627

Private equity/venture capital
 
—

 
—

 
38

Life science/healthcare
 
943

 
—

 
—

Other
 
—

 
—

 
365

Total commercial loans
 
18,033

 
—

 
2,030

Consumer loans:
 
 
 
 
 
 
Real estate secured loans
 
—

 
—

 
—

Other consumer loans
 
—

 
—

 
6

Total consumer loans
 
—

 
—

 
6

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
18,033

 
$
—

 
$
2,036