XML 42 R31.htm IDEA: XBRL DOCUMENT v3.5.0.2
Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $116 million and $115 million at June 30, 2016 and December 31, 2015, respectively, is presented in the following table:
(Dollars in thousands)
 
June 30, 2016
 
December 31, 2015
Commercial loans:
 
 
 
 
Software and internet
 
$
5,530,874

 
$
5,437,915

Hardware
 
1,123,433

 
1,071,528

Private equity/venture capital
 
7,078,544

 
5,467,577

Life science/healthcare
 
1,780,974

 
1,710,642

Premium wine
 
191,183

 
201,175

Other
 
378,399

 
312,278

Total commercial loans
 
16,083,407

 
14,201,115

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
638,053

 
646,120

Consumer loans (2)
 
1,748,419

 
1,544,440

Other
 
44,350

 
44,830

Total real estate secured loans
 
2,430,822

 
2,235,390

Construction loans
 
79,772

 
78,682

Consumer loans
 
239,777

 
226,883

Total loans, net of unearned income (3)
 
$
18,833,778

 
$
16,742,070

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $107 million and $121 million at June 30, 2016 and December 31, 2015, respectively.
(2)
Consumer loans secured by real estate at June 30, 2016 and December 31, 2015 were comprised of the following:
(Dollars in thousands)
 
June 30, 2016
 
December 31, 2015
Loans for personal residence
 
$
1,495,858

 
$
1,312,818

Loans to eligible employees
 
175,269

 
156,001

Home equity lines of credit
 
77,292

 
75,621

Consumer loans secured by real estate
 
$
1,748,419

 
$
1,544,440


(3)
Included within our total loan portfolio are credit card loans of $181 million and $177 million at June 30, 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 $116 million and $115 million at June 30, 2016 and December 31, 2015, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
(Dollars in thousands)
 
June 30, 2016
 
December 31, 2015
Commercial loans:
 
 
 
 
Software and internet
 
$
5,530,874

 
$
5,437,915

Hardware
 
1,123,433

 
1,071,528

Private equity/venture capital
 
7,078,544

 
5,467,577

Life science/healthcare
 
1,780,974

 
1,710,642

Premium wine
 
829,236

 
847,295

Other
 
502,521

 
435,790

Total commercial loans
 
16,845,582

 
14,970,747

Consumer loans:
 
 
 
 
Real estate secured loans
 
1,748,419

 
1,544,440

Other consumer loans
 
239,777

 
226,883

Total consumer loans
 
1,988,196

 
1,771,323

Total loans, net of unearned income
 
$
18,833,778

 
$
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 June 30, 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
June 30, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
16,406

 
$
1,138

 
$
54

 
$
17,598

 
$
5,459,384

 
$
54

Hardware
 
201

 
48

 
—

 
249

 
1,108,574

 
—

Private equity/venture capital
 
11,258

 
63

 
—

 
11,321

 
7,118,442

 
—

Life science/healthcare
 
503

 
26

 
358

 
887

 
1,743,728

 
358

Premium wine
 
4,537

 
—

 
—

 
4,537

 
825,275

 
—

Other
 
98

 
—

 
—

 
98

 
500,293

 
—

Total commercial loans
 
33,003

 
1,275

 
412

 
34,690

 
16,755,696

 
412

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
—

 
—

 
—

 
1,747,021

 
—

Other consumer loans
 
45,008

 
83

 
—

 
45,091

 
193,745

 
—

Total consumer loans
 
45,008

 
83

 
—

 
45,091

 
1,940,766

 
—

Total gross loans excluding impaired loans
 
78,011

 
1,358

 
412

 
79,781

 
18,696,462

 
412

Impaired loans
 
2,975

 
662

 
16,182

 
19,819

 
153,840

 
—

Total gross loans
 
$
80,986

 
$
2,020

 
$
16,594

 
$
99,600

 
$
18,850,302

 
$
412

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 June 30, 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
June 30, 2016:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
93,971

 
$
—

 
$
93,971

 
$
101,358

Hardware
 
22,751

 
—

 
22,751

 
22,786

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science/healthcare
 
49,265

 
—

 
49,265

 
51,412

Premium wine
 
1,296

 
—

 
1,296

 
1,296

Other
 
5,467

 
—

 
5,467

 
5,467

Total commercial loans
 
172,750

 
—

 
172,750

 
182,319

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
123

 
—

 
123

 
1,387

Other consumer loans
 
786

 
—

 
786

 
786

Total consumer loans
 
909

 
—

 
909

 
2,173

Total
 
$
173,659

 
$
—

 
$
173,659

 
$
184,492

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 and six months ended June 30, 2016 and 2015:
Three months ended June 30,
 
Average impaired loans
 
Interest income on impaired loans
(dollars in thousands)
 
2016
 
2015
 
2016
 
2015 (1)
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
101,168

 
$
52,747

 
$
438

 
$
—

Hardware
 
23,221

 
1,393

 
442

 
—

Life science/healthcare
 
33,324

 
1,993

 
—

 
—

Premium wine
 
2,040

 
1,239

 
18

 
—

Other
 
5,485

 
5,222

 
7

 
—

Total commercial loans
 
165,238

 
62,594

 
905

 
—

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
127

 
183

 
—

 
—

Other consumer loans
 
786

 
76

 
11

 
—

Total consumer loans
 
913

 
259

 
11

 
—

Total average impaired loans
 
$
166,151

 
$
62,853

 
$
916

 
$
—

 
 
(1)
For the three months ended June 30, 2015 all impaired loans were nonaccrual loans and no interest income was recognized.

Six months ended June 30,
 
Average impaired loans
 
Interest income on impaired loans
(dollars in thousands)
 
2016
 
2015
 
2016
 
2015 (1)
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
95,268

 
$
43,236

 
$
763

 
$
—

Hardware
 
23,824

 
1,518

 
749

 
—

Life science/healthcare
 
36,507

 
1,197

 
—

 
—

Premium wine
 
2,106

 
1,261

 
35

 
—

Other
 
4,669

 
3,681

 
15

 
—

Total commercial loans
 
162,374

 
50,893

 
1,562

 
—

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
131

 
189

 
—

 
—

Other consumer loans
 
410

 
82

 
11

 
—

Total consumer loans
 
541

 
271

 
11

 
—

Total average impaired loans
 
$
162,915

 
$
51,164

 
$
1,573

 
$
—

 
 
(1)
For the six months ended June 30, 2015 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 the three and six months ended June 30, 2016 and 2015, broken out by portfolio segment:
Three months ended June 30, 2016 (dollars in thousands)
 
Beginning Balance March 31, 2016
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments
 
Ending Balance June 30, 2016
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
106,898

 
$
(18,055
)
 
$
260

 
$
16,215

 
$
(1,089
)
 
$
104,229

Hardware
 
23,836

 
(2,015
)
 
183

 
2,003

 
(136
)
 
23,871

Private equity/venture capital
 
43,686

 
—

 
—

 
6,562

 
(441
)
 
49,807

Life science/healthcare
 
30,285

 
(606
)
 
185

 
12,853

 
(865
)
 
41,852

Premium wine
 
5,244

 
—

 
—

 
(465
)
 
31

 
4,810

Other
 
9,547

 
—

 
599

 
(714
)
 
48

 
9,480

Total commercial loans
 
219,496

 
(20,676
)
 
1,227

 
36,454

 
(2,452
)
 
234,049

Consumer loans
 
10,753

 
—

 
34

 
(121
)
 
8

 
10,674

Total allowance for loan losses
 
$
230,249

 
$
(20,676
)
 
$
1,261

 
$
36,333

 
$
(2,444
)
 
$
244,723


Three months ended June 30, 2015 (dollars in thousands)
 
Beginning Balance March 31, 2015
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments (1)
 
Ending Balance June 30, 2015
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
82,092

 
$
(762
)
 
$
597

 
$
24,732

 
$
69

 
$
106,728

Hardware
 
21,258

 
(839
)
 
1,881

 
(1,823
)
 
(5
)
 
20,472

Private equity/venture capital
 
30,837

 
—

 
—

 
(1,557
)
 
(4
)
 
29,276

Life science/healthcare
 
15,323

 
(2,994
)
 
45

 
4,846

 
13

 
17,233

Premium wine
 
4,503

 
—

 
7

 
(101
)
 
—

 
4,409

Other
 
6,151

 
(139
)
 
409

 
(505
)
 
(22
)
 
5,894

Total commercial loans
 
160,164

 
(4,734
)
 
2,939

 
25,592

 
51

 
184,012

Consumer loans
 
7,711

 
—

 
—

 
921

 
—

 
8,632

Total allowance for loan losses
 
$
167,875

 
$
(4,734
)
 
$
2,939

 
$
26,513

 
$
51

 
$
192,644


 
(1)
Reflects foreign currency translation adjustments within the allowance for loan losses. Prior period amounts were previously reported with loan recoveries and have been revised to conform to current period presentation.
Six months ended June 30, 2016 (dollars in thousands)
 
Beginning Balance December 31, 2015
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments
 
Ending Balance June 30, 2016
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
103,045

 
$
(40,216
)
 
$
4,220

 
$
37,847

 
$
(667
)
 
$
104,229

Hardware
 
23,085

 
(3,501
)
 
422

 
3,962

 
(97
)
 
23,871

Private equity/venture capital
 
35,282

 
—

 
—

 
14,805

 
(280
)
 
49,807

Life science/healthcare
 
36,576

 
(3,001
)
 
676

 
8,550

 
(949
)
 
41,852

Premium wine
 
5,205

 
—

 
—

 
(426
)
 
31

 
4,810

Other
 
4,252

 
(30
)
 
673

 
4,431

 
154

 
9,480

Total commercial loans
 
207,445

 
(46,748
)
 
5,991

 
69,169

 
(1,808
)
 
234,049

Consumer loans
 
10,168

 
(102
)
 
83

 
505

 
20

 
10,674

Total allowance for loan losses
 
$
217,613

 
$
(46,850
)
 
$
6,074

 
$
69,674

 
$
(1,788
)
 
$
244,723



Six months ended June 30, 2015 (dollars in thousands)
 
Beginning Balance December 31, 2014
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments (1)
 
Ending Balance June 30, 2015
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
80,981

 
$
(2,165
)
 
$
1,044

 
$
26,869

 
$
(1
)
 
$
106,728

Hardware
 
25,860

 
(4,049
)
 
2,809

 
(4,221
)
 
73

 
20,472

Private equity/venture capital
 
27,997

 
—

 
—

 
1,381

 
(102
)
 
29,276

Life science/healthcare
 
15,208

 
(3,219
)
 
79

 
5,161

 
4

 
17,233

Premium wine
 
4,473

 
—

 
7

 
(71
)
 
—

 
4,409

Other
 
3,253

 
(788
)
 
556

 
2,933

 
(60
)
 
5,894

Total commercial loans
 
157,772

 
(10,221
)
 
4,495

 
32,052

 
(86
)
 
184,012

Consumer loans
 
7,587

 
—

 
132

 
913

 
—

 
8,632

Total allowance for loan losses
 
$
165,359

 
$
(10,221
)
 
$
4,627

 
$
32,965

 
$
(86
)
 
$
192,644

 
(1)
Reflects foreign currency translation adjustments within the allowance for loan losses. Prior period amounts were previously reported with loan recoveries and have been revised to conform to current period presentation.
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 June 30, 2016 and December 31, 2015, broken out by portfolio segment:
 
 
June 30, 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
 
$
33,705

 
$
93,971

 
$
70,524

 
$
5,436,903

 
$
34,098

 
$
100,866

 
$
68,947

 
$
5,337,049

Hardware
 
2,327

 
22,751

 
21,544

 
1,100,682

 
3,160

 
27,736

 
19,925

 
1,043,792

Private equity/venture capital
 
—

 
—

 
49,807

 
7,078,544

 
—

 
—

 
35,282

 
5,467,577

Life science/healthcare
 
23,380

 
49,265

 
18,472

 
1,731,709

 
20,230

 
51,354

 
16,346

 
1,659,288

Premium wine
 
130

 
1,296

 
4,680

 
827,940

 
90

 
2,065

 
5,115

 
845,230

Other
 
5,047

 
5,467

 
4,433

 
497,054

 
52

 
520

 
4,200

 
435,270

Total commercial loans
 
64,589

 
172,750

 
169,460

 
16,672,832

 
57,630

 
182,541

 
149,815

 
14,788,206

Consumer loans
 
202

 
909

 
10,472

 
1,987,287

 
143

 
143

 
10,025

 
1,771,180

Total
 
$
64,791

 
$
173,659

 
$
179,932

 
$
18,660,119

 
$
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 June 30, 2016 and December 31, 2015:
(Dollars in thousands)
 
Pass
 
  Performing  
  (Criticized)  
 
  Performing 
Impaired 
(Criticized)  
 
Nonperforming Impaired   (Nonaccrual)
 
Total
June 30, 2016:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
4,896,785

 
$
580,197

 
$
24,097

 
$
69,874

 
$
5,570,953

Hardware
 
958,512

 
150,311

 
22,694

 
57

 
1,131,574

Private equity/venture capital
 
7,129,763

 
—

 
—

 
—

 
7,129,763

Life science/healthcare
 
1,601,046

 
143,569

 
—

 
49,265

 
1,793,880

Premium wine
 
802,929

 
26,883

 
1,296

 
—

 
831,108

Other
 
491,745

 
8,646

 
467

 
5,000

 
505,858

Total commercial loans
 
15,880,780

 
909,606

 
48,554

 
124,196

 
16,963,136

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,747,021

 
—

 
—

 
123

 
1,747,144

Other consumer loans
 
238,836

 
—

 
786

 
—

 
239,622

Total consumer loans
 
1,985,857

 
—

 
786

 
123

 
1,986,766

Total gross loans
 
$
17,866,637

 
$
909,606

 
$
49,340

 
$
124,319

 
$
18,949,902

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 June 30, 2016 and December 31, 2015:
(Dollars in thousands)
 
June 30, 2016
 
December 31, 2015
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
49,427

 
$
56,790

Hardware
 
107

 
473

Life science/healthcare
 
24,501

 
51,878

Premium wine
 
2,983

 
2,065

Other
 
467

 
519

Total commercial loans
 
77,485

 
111,725

Consumer loans:
 
 
 
 
Other consumer loans
 
786

 
—

Total consumer loans
 
786

 
—

Total
 
$
78,271

 
$
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 and six months ended June 30, 2016 and 2015:
 
 
Three months ended June 30,
 
Six months ended June 30,
(Dollars in thousands)
 
2016

2015
 
2016
 
2015
Loans modified in TDRs during the period:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
4,402

 
$
27,525

 
$
5,525

 
$
27,525

Hardware
 
—

 
—

 
—

 
2,040

Premium wine
 
—

 
—

 
506

 
—

Total commercial loans
 
4,402

 
27,525

 
6,031

 
29,565

Consumer loans:
 
 
 
 
 
 
 
 
Other consumer loans
 
786

 
—

 
786

 
—

Total consumer loans
 
786

 
—

 
786

 
—

Total loans modified in TDRs during the period (1)
 
$
5,188

 
$
27,525

 
$
6,817

 
$
29,565

 
 
(1)
There were $0.5 million and $4.3 million of partial charge-offs during the three and six months ended June 30, 2016 and no partial charge-offs during the three and six months ended June 30, 2015.