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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $125 million and $115 million at December 31, 2016 and 2015, respectively, is presented in the following table:
 
 
December 31,
(Dollars in thousands)
 
2016
 
2015
Commercial loans:
 
 
 
 
Software and internet
 
$
5,627,031

 
$
5,437,915

Hardware
 
1,180,398

 
1,071,528

Private equity/venture capital
 
7,691,148

 
5,467,577

Life science/healthcare
 
1,853,004

 
1,710,642

Premium wine
 
200,156

 
201,175

Other
 
393,551

 
312,278

Total commercial loans
 
16,945,288

 
14,201,115

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
678,166

 
646,120

Consumer loans (2)
 
1,926,968

 
1,544,440

Other
 
43,487

 
44,830

Total real estate secured loans
 
2,648,621

 
2,235,390

Construction loans
 
64,671

 
78,682

Consumer loans
 
241,364

 
226,883

Total loans, net of unearned income (3)
 
$
19,899,944

 
$
16,742,070

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $110 million and $121 million at December 31, 2016 and 2015, respectively.
(2)
Consumer loans secured by real estate at December 31, 2016 and 2015 were comprised of the following:
 
 
December 31,
(Dollars in thousands)
 
2016
 
2015
Loans for personal residence
 
$
1,655,349

 
$
1,312,818

Loans to eligible employees
 
199,291

 
156,001

Home equity lines of credit
 
72,328

 
75,621

Consumer loans secured by real estate
 
$
1,926,968

 
$
1,544,440


(3)
Included within our total loan portfolio are credit card loans of $224 million and $177 million at December 31, 2016 and 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 $125 million and $115 million at December 31, 2016 and 2015, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
 
 
December 31,
(Dollars in thousands)
 
2016
 
2015
Commercial loans:
 
 
 
 
Software and internet
 
$
5,627,031

 
$
5,437,915

Hardware
 
1,180,398

 
1,071,528

Private equity/venture capital
 
7,691,148

 
5,467,577

Life science/healthcare
 
1,853,004

 
1,710,642

Premium wine
 
878,322

 
847,295

Other
 
501,709

 
435,790

Total commercial loans
 
17,731,612

 
14,970,747

Consumer loans:
 
 
 
 
Real estate secured loans
 
1,926,968

 
1,544,440

Other consumer loans
 
241,364

 
226,883

Total consumer loans
 
2,168,332

 
1,771,323

Total loans, net of unearned income
 
$
19,899,944

 
$
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 December 31, 2016 and 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
December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
37,087

 
$
1,162

 
$
6

 
$
38,255

 
$
5,507,575

 
$
6

Hardware
 
5,591

 
36

 
27

 
5,654

 
1,118,065

 
27

Private equity/venture capital
 
689

 
—

 
—

 
689

 
7,747,222

 
—

Life science/healthcare
 
283

 
551

 
—

 
834

 
1,827,490

 
—

Premium wine
 
1,003

 
4

 
—

 
1,007

 
876,185

 
—

Other
 
34

 
300

 
—

 
334

 
504,021

 
—

Total commercial loans
 
44,687

 
2,053

 
33

 
46,773

 
17,580,558

 
33

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
850

 
—

 
—

 
850

 
1,923,266

 
—

Other consumer loans
 
1,402

 
—

 
—

 
1,402

 
237,353

 
—

Total consumer loans
 
2,252

 
—

 
—

 
2,252

 
2,160,619

 
—

Total gross loans excluding impaired loans
 
46,939

 
2,053

 
33

 
49,025

 
19,741,177

 
33

Impaired loans
 
34,636

 
3,451

 
11,180

 
49,267

 
185,193

 
—

Total gross loans
 
$
81,575

 
$
5,504

 
$
11,213

 
$
98,292

 
$
19,926,370

 
$
33

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 for the years ended December 31, 2016 and 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   
December 31, 2016:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
121,658

 
$
1,090

 
$
122,748

 
$
129,648

Hardware
 
65,395

 
—

 
65,395

 
70,683

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science/healthcare
 
38,361

 
—

 
38,361

 
41,130

Premium wine
 
3,187

 
—

 
3,187

 
3,187

Other
 
867

 
—

 
867

 
867

Total commercial loans
 
229,468

 
1,090

 
230,558

 
245,515

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,504

 
—

 
1,504

 
2,779

Other consumer loans
 
2,398

 
—

 
2,398

 
2,398

Total consumer loans
 
3,902

 
—

 
3,902

 
5,177

Total
 
$
233,370

 
$
1,090

 
$
234,460

 
$
250,692

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 and the related interest income while impaired, broken out by portfolio segment and class of financing receivable during 2016, 2015 and 2014:
Year ended December 31,
(Dollars in thousands)
 
Average impaired loans
 
Interest income on impaired loans
 
2016

2015

2014
 
2016
 
2015
 
2014 (1)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
89,462

 
$
63,825

 
$
14,357

 
$
1,054

 
$
344

 
$
—

Hardware
 
39,108

 
8,854

 
6,634

 
2,624

 
574

 
—

Private equity/venture capital
 
—

 
—

 
—

 
—

 
—

 
—

Life science/healthcare
 
40,620

 
18,083

 
516

 
155

 
132

 
—

Premium wine
 
2,056

 
1,455

 
1,381

 
28

 
12

 
—

Other
 
3,442

 
2,758

 
1,088

 
6

 
8

 
—

Total commercial loans
 
174,688

 
94,975

 
23,976

 
3,867

 
1,070

 
—

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
588

 
172

 
218

 
—

 
—

 
—

Other consumer loans
 
1,136

 
41

 
322

 
17

 
—

 
—

Total consumer loans
 
1,724

 
213

 
540

 
17

 
—

 
—

Total average impaired loans
 
$
176,412

 
$
95,188

 
$
24,516

 
$
3,884

 
$
1,070

 
$
—

 
 
(1)
In 2014, 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 2016, 2015 and 2014 broken out by portfolio segment:
Year ended December 31, 2016
(Dollars in thousands)
 
Beginning Balance December 31, 2015
 
Charge-offs
 
Recoveries
 
Provision for (Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments
 
Ending Balance December 31, 2016
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
103,045

 
$
(68,784
)
 
$
7,278

 
$
58,350

 
$
(2,501
)
 
$
97,388

Hardware
 
23,085

 
(13,233
)
 
1,667

 
20,851

 
(1,204
)
 
31,166

Private equity/venture capital
 
35,282

 
—

 
—

 
15,114

 
(97
)
 
50,299

Life science/healthcare
 
36,576

 
(9,693
)
 
1,129

 
(2,543
)
 
(23
)
 
25,446

Premium wine
 
5,205

 
—

 
—

 
(1,260
)
 
170

 
4,115

Other
 
4,252

 
(5,045
)
 
1,880

 
3,373

 
308

 
4,768

Total commercial loans
 
207,445

 
(96,755
)
 
11,954

 
93,885

 
(3,347
)
 
213,182

Consumer loans
 
10,168

 
(102
)
 
258

 
1,812

 
48

 
12,184

Total allowance for loan losses
 
$
217,613

 
$
(96,857
)
 
$
12,212

 
$
95,697

 
$
(3,299
)
 
$
225,366

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

 
$
(33,246
)
 
$
1,621

 
$
53,696

 
$
(7
)
 
$
103,045

Hardware
 
25,860

 
(5,145
)
 
3,332

 
(1,035
)
 
73

 
23,085

Private equity/venture capital
 
27,997

 
—

 
—

 
7,391

 
(106
)
 
35,282

Life science/healthcare
 
15,208

 
(7,291
)
 
277

 
28,400

 
(18
)
 
36,576

Premium wine
 
4,473

 
—

 
7

 
725

 
—

 
5,205

Other
 
3,253

 
(4,990
)
 
809

 
5,736

 
(556
)
 
4,252

Total commercial loans
 
157,772

 
(50,672
)
 
6,046

 
94,913

 
(614
)
 
207,445

Consumer loans
 
7,587

 
(296
)
 
163

 
2,716

 
(2
)
 
10,168

Total allowance for loan losses
 
$
165,359

 
$
(50,968
)
 
$
6,209

 
$
97,629

 
$
(616
)
 
$
217,613


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

 
$
(21,031
)
 
$
1,425

 
$
36,547

 
$
(44
)
 
$
80,981

Hardware
 
36,553

 
(15,265
)
 
2,238

 
2,417

 
(83
)
 
25,860

Private equity/venture capital
 
16,385

 
—

 
—

 
11,632

 
(20
)
 
27,997

Life science/healthcare
 
11,926

 
(2,951
)
 
374

 
5,925

 
(66
)
 
15,208

Premium wine
 
3,914

 
(35
)
 
240

 
354

 
—

 
4,473

Other
 
3,680

 
(3,886
)
 
1,748

 
1,760

 
(49
)
 
3,253

Total commercial loans
 
136,542

 
(43,168
)
 
6,025

 
58,635

 
(262
)
 
157,772

Consumer loans
 
6,344

 
—

 
379

 
851

 
13

 
7,587

Total allowance for loan losses
 
$
142,886

 
$
(43,168
)
 
$
6,404

 
$
59,486

 
$
(249
)
 
$
165,359
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, 2016 and 2015, broken out by portfolio segment:
 
 
December 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
 
$
28,245

 
$
122,748

 
$
69,143

 
$
5,504,283

 
$
34,098

 
$
100,866

 
$
68,947

 
$
5,337,049

Hardware
 
9,995

 
65,395

 
21,171

 
1,115,003

 
3,160

 
27,736

 
19,925

 
1,043,792

Private equity/venture capital
 
—

 
—

 
50,299

 
7,691,148

 
—

 
—

 
35,282

 
5,467,577

Life science/healthcare
 
8,709

 
38,361

 
16,737

 
1,814,643

 
20,230

 
51,354

 
16,346

 
1,659,288

Premium wine
 
520

 
3,187

 
3,595

 
875,135

 
90

 
2,065

 
5,115

 
845,230

Other
 
233

 
867

 
4,535

 
500,842

 
52

 
520

 
4,200

 
435,270

Total commercial loans
 
47,702

 
230,558

 
165,480

 
17,501,054

 
57,630

 
182,541

 
149,815

 
14,788,206

Consumer loans
 
1,123

 
3,902

 
11,061

 
2,164,430

 
143

 
143

 
10,025

 
1,771,180

Total
 
$
48,825

 
$
234,460

 
$
176,541

 
$
19,665,484

 
$
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 December 31, 2016 and 2015:
(Dollars in thousands)
 
Pass
 
  Performing 
(Criticized)  
 
Performing Impaired 
(Criticized)
 
Nonperforming Impaired (Nonaccrual)
 
Total
December 31, 2016:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
4,924,923

 
$
620,907

 
$
46,143

 
$
76,605

 
$
5,668,578

Hardware
 
985,889

 
137,830

 
58,814

 
6,581

 
1,189,114

Private equity/venture capital
 
7,747,317

 
594

 
—

 
—

 
7,747,911

Life science/healthcare
 
1,707,499

 
120,825

 
6,578

 
31,783

 
1,866,685

Premium wine
 
865,354

 
11,838

 
2,696

 
491

 
880,379

Other
 
480,845

 
23,510

 
464

 
403

 
505,222

Total commercial loans
 
16,711,827

 
915,504

 
114,695


115,863

 
17,857,889

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,914,512

 
9,604

 
—

 
1,504

 
1,925,620

Other consumer loans
 
238,256

 
499

 
786

 
1,612

 
241,153

Total consumer loans
 
2,152,768

 
10,103

 
786

 
3,116

 
2,166,773

Total gross loans
 
$
18,864,595

 
$
925,607

 
$
115,481

 
$
118,979

 
$
20,024,662

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 December 31, 2016 and 2015:
 
 
December 31,
(Dollars in thousands)
 
2016
 
2015
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
52,646

 
$
56,790

Hardware
 
14,870

 
473

Life science/healthcare
 
24,176

 
51,878

Premium wine
 
3,194

 
2,065

Other
 
387

 
519

Total commercial loans
 
95,273

 
111,725

Consumer loans:
 
 
 
 
Other consumer loans
 
786

 
—

Total consumer loans
 
786

 
—

Total loans modified in TDRs
 
$
96,059

 
$
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 2016, 2015 and 2014:
 
 
Year ended December 31,
(Dollars in thousands)
 
2016
 
2015
 
2014
Loans modified in TDRs during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software and internet
 
$
23,574

 
$
56,790

 
$
1,033

Hardware
 
14,870

 
286

 
1,118

Private equity/venture capital
 
—

 
—

 
—

Life science/healthcare
 
1,638

 
51,878

 
—

Premium wine
 
677

 
898

 
587

Other
 
—

 
519

 
—

Total commercial loans
 
40,759

 
110,371

 
2,738

Consumer loans:
 
 
 
 
 
 
Other consumer loans
 
786

 
—

 
—

Total consumer loans
 
786

 
—

 
—

Total loans modified in TDRs during the period (1)
 
$
41,545

 
$
110,371

 
$
2,738

 
 
(1)
During 2016 we had $3.6 million of partial charge-offs on loans classified as TDRs. We had $23.5 million of partial charge-offs in 2015 and we did not have any partial charge-offs in 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 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)
 
2016
 
2015
 
2014
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software and internet
 
$
—

 
$
16,804

 
$
—

Hardware
 
134

 
286

 
—

Premium wine
 
491

 
—

 
—

Life science/healthcare
 
—

 
943

 
—

Total commercial loans
 
625

 
18,033

 
—

Consumer loans:
 
 
 
 
 
 
Other consumer loans
 
786

 
—

 
—

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
1,411

 
$
18,033

 
$
—