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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $111 million and $115 million at March 31, 2016 and December 31, 2015, respectively, is presented in the following table:
(Dollars in thousands)
 
March 31, 2016
 
December 31, 2015
Commercial loans:
 
 
 
 
Software and internet
 
$
5,454,552

 
$
5,437,915

Hardware
 
1,056,933

 
1,071,528

Private equity/venture capital
 
6,299,608

 
5,467,577

Life science/healthcare
 
1,727,992

 
1,710,642

Premium wine
 
183,917

 
201,175

Other
 
357,600

 
312,278

Total commercial loans
 
15,080,602

 
14,201,115

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
653,993

 
646,120

Consumer loans (2)
 
1,653,531

 
1,544,440

Other
 
44,603

 
44,830

Total real estate secured loans
 
2,352,127

 
2,235,390

Construction loans
 
74,003

 
78,682

Consumer loans
 
228,415

 
226,883

Total loans, net of unearned income (3)
 
$
17,735,147

 
$
16,742,070

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $106 million and $121 million at March 31, 2016 and December 31, 2015, respectively.
(2)
Consumer loans secured by real estate at March 31, 2016 and December 31, 2015 were comprised of the following:
(Dollars in thousands)
 
March 31, 2016
 
December 31, 2015
Loans for personal residence
 
$
1,414,665

 
$
1,312,818

Loans to eligible employees
 
167,818

 
156,001

Home equity lines of credit
 
71,048

 
75,621

Consumer loans secured by real estate
 
$
1,653,531

 
$
1,544,440


(3)
Included within our total loan portfolio are credit card loans of $193 million and $177 million at March 31, 2016 and December 31, 2015, 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 $111 million and $115 million at March 31, 2016 and December 31, 2015, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
(Dollars in thousands)
 
March 31, 2016
 
December 31, 2015
Commercial loans:
 
 
 
 
Software and internet
 
$
5,454,552

 
$
5,437,915

Hardware
 
1,056,933

 
1,071,528

Private equity/venture capital
 
6,299,608

 
5,467,577

Life science/healthcare
 
1,727,992

 
1,710,642

Premium wine
 
837,910

 
847,295

Other
 
476,206

 
435,790

Total commercial loans
 
15,853,201

 
14,970,747

Consumer loans:
 
 
 
 
Real estate secured loans
 
1,653,531

 
1,544,440

Other consumer loans
 
228,415

 
226,883

Total consumer loans
 
1,881,946

 
1,771,323

Total loans, net of unearned income
 
$
17,735,147

 
$
16,742,070
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, 2016 and December 31, 2015:
(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, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
13,989

 
$
2,578

 
$
2

 
$
16,569

 
$
5,368,871

 
$
2

Hardware
 
1,181

 
149

 
20

 
1,350

 
1,035,479

 
20

Private equity/venture capital
 
21,212

 
29

 
—

 
21,241

 
6,324,848

 
—

Life science/healthcare
 
6,978

 
37

 
—

 
7,015

 
1,700,711

 
—

Premium wine
 
712

 
—

 
—

 
712

 
836,496

 
—

Other
 
850

 
89

 
5

 
944

 
472,921

 
5

Total commercial loans
 
44,922

 
2,882

 
27

 
47,831

 
15,739,326

 
27

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
7,166

 
—

 
—

 
7,166

 
1,645,047

 
—

Other consumer loans
 
80

 
1,800

 
—

 
1,880

 
226,369

 
—

Total consumer loans
 
7,246

 
1,800

 
—

 
9,046

 
1,871,416

 
—

Total gross loans excluding impaired loans
 
52,168

 
4,682

 
27

 
56,877

 
17,610,742

 
27

Impaired loans
 
1,575

 
—

 
13,237

 
14,812

 
163,650

 
—

Total gross loans
 
$
53,743

 
$
4,682

 
$
13,264

 
$
71,689

 
$
17,774,392

 
$
27

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

 
$
—
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, 2016 and December 31, 2015:
(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, 2016:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
108,871

 
$
561

 
$
109,432

 
$
122,585

Hardware
 
27,702

 
214

 
27,916

 
28,764

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science/healthcare
 
33,040

 
—

 
33,040

 
34,205

Premium wine
 
1,295

 
1,132

 
2,427

 
2,991

Other
 
5,516

 
—

 
5,516

 
5,516

Total commercial loans
 
176,424

 
1,907

 
178,331

 
194,061

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
131

 
—

 
131

 
1,388

Other consumer loans
 
—

 
—

 
—

 
—

Total consumer loans
 
131

 
—

 
131

 
1,388

Total
 
$
176,555

 
$
1,907

 
$
178,462

 
$
195,449

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
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, 2016 and 2015:
Three months ended March 31,
 
Average impaired loans
 
Interest income on impaired loans
(dollars in thousands)
 
2016
 
2015
 
2016
 
2015 (1)
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
89,367

 
$
33,725

 
$
421

 
$
—

Hardware
 
24,426

 
1,643

 
397

 
—

Life science/healthcare
 
39,690

 
400

 
133

 
—

Premium wine
 
2,171

 
1,282

 
17

 
—

Other
 
3,853

 
2,139

 
7

 
—

Total commercial loans
 
159,507

 
39,189

 
975

 
—

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
135

 
195

 
—

 
—

Other consumer loans
 
34

 
88

 
—

 
—

Total consumer loans
 
169

 
283

 
—

 
—

Total average impaired loans
 
$
159,676

 
$
39,472

 
$
975

 
$
—
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, 2016 and 2015, broken out by portfolio segment:
Three months ended March 31, 2016 (dollars in thousands)
 
Beginning Balance December 31, 2015
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance March 31, 2016
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
103,045

 
$
(22,161
)
 
$
3,960

 
$
22,054

 
$
106,898

Hardware
 
23,085

 
(1,486
)
 
239

 
1,998

 
23,836

Private equity/venture capital
 
35,282

 
—

 
—

 
8,404

 
43,686

Life science/healthcare
 
36,576

 
(2,395
)
 
491

 
(4,387
)
 
30,285

Premium wine
 
5,205

 
—

 
—

 
39

 
5,244

Other
 
4,252

 
(30
)
 
730

 
4,595

 
9,547

Total commercial loans
 
207,445

 
(26,072
)
 
5,420

 
32,703

 
219,496

Consumer loans
 
10,168

 
(102
)
 
49

 
638

 
10,753

Total allowance for loan losses
 
$
217,613

 
$
(26,174
)
 
$
5,469

 
$
33,341

 
$
230,249


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
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, 2016 and December 31, 2015, broken out by portfolio segment:
 
 
March 31, 2016
 
December 31, 2015
 
 
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
 
$
36,886

 
$
109,432

 
$
70,012

 
$
5,345,120

 
$
34,098

 
$
100,866

 
$
68,947

 
$
5,337,049

Hardware
 
2,872

 
27,916

 
20,964

 
1,029,017

 
3,160

 
27,736

 
19,925

 
1,043,792

Private equity/venture capital
 
—

 
—

 
43,686

 
6,299,608

 
—

 
—

 
35,282

 
5,467,577

Life science/healthcare
 
11,735

 
33,040

 
18,550

 
1,694,952

 
20,230

 
51,354

 
16,346

 
1,659,288

Premium wine
 
129

 
2,427

 
5,115

 
835,483

 
90

 
2,065

 
5,115

 
845,230

Other
 
5,052

 
5,516

 
4,495

 
470,690

 
52

 
520

 
4,200

 
435,270

Total commercial loans
 
56,674

 
178,331

 
162,822

 
15,674,870

 
57,630

 
182,541

 
149,815

 
14,788,206

Consumer loans
 
131

 
131

 
10,622

 
1,881,815

 
143

 
143

 
10,025

 
1,771,180

Total
 
$
56,805

 
$
178,462

 
$
173,444

 
$
17,556,685

 
$
57,773

 
$
182,684

 
$
159,840

 
$
16,559,386
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, 2016 and December 31, 2015:
(Dollars in thousands)
 
Pass
 
  Performing  
  (Criticized)  
 
  Performing 
Impaired 
(Criticized)  
 
Nonperforming Impaired   (Nonaccrual)
 
Total
March 31, 2016:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
4,832,174

 
$
553,266

 
$
27,657

 
$
81,775

 
$
5,494,872

Hardware
 
882,651

 
154,178

 
27,589

 
327

 
1,064,745

Private equity/venture capital
 
6,345,463

 
626

 
—

 
—

 
6,346,089

Life science/healthcare
 
1,557,912

 
149,814

 
7,461

 
25,579

 
1,740,766

Premium wine
 
797,390

 
39,818

 
1,294

 
1,133

 
839,635

Other
 
466,715

 
7,150

 
516

 
5,000

 
479,381

Total commercial loans
 
14,882,305

 
904,852

 
64,517

 
113,814

 
15,965,488

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,652,213

 
—

 
—

 
131

 
1,652,344

Other consumer loans
 
227,463

 
786

 
—

 
—

 
228,249

Total consumer loans
 
1,879,676

 
786

 
—

 
131

 
1,880,593

Total gross loans
 
$
16,761,981

 
$
905,638

 
$
64,517

 
$
113,945

 
$
17,846,081

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
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, 2016 and December 31, 2015:
(Dollars in thousands)
 
March 31, 2016
 
December 31, 2015
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
57,836

 
$
56,790

Hardware
 
155

 
473

Life science/healthcare
 
25,104

 
51,878

Premium wine
 
2,427

 
2,065

Other
 
517

 
519

Total commercial loans
 
86,039

 
111,725

Consumer loans:
 
 
 
 
Other consumer loans
 
—

 
—

Total consumer loans
 
—

 
—

Total
 
$
86,039

 
$
111,725
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, 2016 and 2015:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2016

2015
Loans modified in TDRs during the period:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet (1)
 
$
10,854

 
$
—

Hardware
 
—

 
4,000

Premium wine
 
505

 
—

Total commercial loans
 
11,359

 
4,000

Consumer loans:
 
 
 
 
Real estate secured loans
 
—

 
1,280

Total consumer loans
 
—

 
1,280

Total loans modified in TDRs during the period (1)
 
$
11,359

 
$
5,280

 
 
(1)
There were $3.8 million of partial charge-offs during the three months ended March 31, 2016 and no partial charge-offs during the three months ended March 31, 2015.