XML 46 R35.htm IDEA: XBRL DOCUMENT v3.19.1
Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments (Tables)
 3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $170 million and $173 million at March 31, 2019 and December 31, 2018, respectively, is presented in the following table:
(Dollars in thousands)
 
March 31, 2019
 
December 31, 2018
Commercial loans:
 
 
 
 
Software/internet
 
$
6,236,266

 
$
6,154,755

Hardware
 
1,256,891

 
1,234,557

Private equity/venture capital
 
14,308,077

 
14,110,560

Life science/healthcare
 
2,522,731

 
2,385,612

Premium wine
 
256,021

 
249,266

Other
 
260,206

 
321,978

Total commercial loans
 
24,840,192

 
24,456,728

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
758,954

 
710,397

Consumer loans (2)
 
2,679,084

 
2,612,971

Other
 
40,037

 
40,435

Total real estate secured loans
 
3,478,075

 
3,363,803

Construction loans
 
111,854

 
97,077

Consumer loans
 
420,324

 
420,672

Total loans, net of unearned income (3)
 
$
28,850,445

 
$
28,338,280

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $96 million and $99 million at March 31, 2019 and December 31, 2018, respectively.
(2)
Consumer loans secured by real estate at March 31, 2019 and December 31, 2018 were comprised of the following:
(Dollars in thousands)
 
March 31, 2019
 
December 31, 2018
Loans for personal residence
 
$
2,311,701

 
$
2,251,292

Loans to eligible employees
 
302,671

 
290,194

Home equity lines of credit
 
64,712

 
71,485

Consumer loans secured by real estate
 
$
2,679,084

 
$
2,612,971


(3)
Included within our total loan portfolio are credit card loans of $375 million and $335 million at March 31, 2019 and December 31, 2018, 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 $170 million and $173 million at March 31, 2019 and December 31, 2018, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
(Dollars in thousands)
 
March 31, 2019
 
December 31, 2018
Commercial loans:
 
 
 
 
Software/internet
 
$
6,236,266

 
$
6,154,755

Hardware
 
1,256,891

 
1,234,557

Private equity/venture capital
 
14,308,077

 
14,110,560

Life science/healthcare
 
2,522,731

 
2,385,612

Premium wine
 
1,014,975

 
959,663

Other
 
412,097

 
459,490

Total commercial loans
 
25,751,037

 
25,304,637

Consumer loans:
 
 
 
 
Real estate secured loans
 
2,679,084

 
2,612,971

Other consumer loans
 
420,324

 
420,672

Total consumer loans
 
3,099,408

 
3,033,643

Total loans, net of unearned income
 
$
28,850,445

 
$
28,338,280
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, 2019 and December 31, 2018:
(Dollars in thousands)
 
30 - 59
  Days Past  
Due
 
60 - 89
  Days Past  
Due
 
Equal to or Greater
Than 90
  Days Past  
Due
 
  Total Past  
Due
 
Current  
 
  Loans Past Due  
90 Days or
More Still
Accruing
Interest
March 31, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
34,680

 
$
4,042

 
$
1,945

 
$
40,667

 
$
6,147,766

 
$
1,945

Hardware
 
379

 
55

 
—

 
434

 
1,245,841

 
—

Private equity/venture capital
 
24,960

 
—

 
1

 
24,961

 
14,284,752

 
1

Life science/healthcare
 
2,711

 
640

 
201

 
3,552

 
2,522,991

 
201

Premium wine
 
2,981

 
—

 
—

 
2,981

 
1,011,487

 
—

Other
 
1

 
4

 
1

 
6

 
445,402

 
1

Total commercial loans
 
65,712

 
4,741

 
2,148

 
72,601

 
25,658,239

 
2,148

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
3,050

 
—

 
—

 
3,050

 
2,664,875

 
—

Other consumer loans
 
—

 
—

 
—

 
—

 
420,647

 
—

Total consumer loans
 
3,050

 
—

 
—

 
3,050

 
3,085,522

 
—

Total gross loans excluding impaired loans
 
68,762

 
4,741

 
2,148

 
75,651

 
28,743,761

 
2,148

Impaired loans
 
11,562

 
2,517

 
26,412

 
40,491

 
160,616

 
—

Total gross loans
 
$
80,324

 
$
7,258

 
$
28,560

 
$
116,142

 
$
28,904,377

 
$
2,148

December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
28,134

 
$
6,944

 
$
378

 
$
35,456

 
$
6,059,672

 
$
378

Hardware
 
300

 
34

 
4

 
338

 
1,233,956

 
4

Private equity/venture capital
 
59,481

 
11

 
—

 
59,492

 
14,054,940

 
—

Life science/healthcare
 
16,082

 
817

 
19

 
16,918

 
2,410,091

 
19

Premium wine
 
2,953

 
14

 
—

 
2,967

 
956,285

 
—

Other
 
7,391

 
163

 
1

 
7,555

 
477,442

 
1

Total commercial loans
 
114,341

 
7,983

 
402

 
122,726

 
25,192,386

 
402

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
3,598

 
1,750

 
1,562

 
6,910

 
2,598,496

 
1,562

Other consumer loans
 
361

 
—

 
—

 
361

 
420,359

 
—

Total consumer loans
 
3,959

 
1,750

 
1,562

 
7,271

 
3,018,855

 
1,562

Total gross loans excluding impaired loans
 
118,300

 
9,733

 
1,964

 
129,997

 
28,211,241

 
1,964

Impaired loans
 
2,843

 
1,181

 
25,092

 
29,116

 
140,958

 
—

Total gross loans
 
$
121,143

 
$
10,914

 
$
27,056

 
$
159,113

 
$
28,352,199

 
$
1,964
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, 2019 and December 31, 2018:
(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, 2019:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software/internet
 
$
45,908

 
$
53,026

 
$
98,934

 
$
117,640

Hardware
 
8,054

 
11,753

 
19,807

 
20,482

Private equity/venture capital
 
2,247

 
3,700

 
5,947

 
5,947

Life science/healthcare
 
52,944

 
14,427

 
67,371

 
78,353

Premium wine
 
—

 
1,236

 
1,236

 
1,305

Other
 
4

 
—

 
4

 
4

Total commercial loans
 
109,157

 
84,142

 
193,299

 
223,731

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,827

 
5,967

 
7,794

 
9,691

Other consumer loans
 
14

 
—

 
14

 
15

Total consumer loans
 
1,841

 
5,967

 
7,808

 
9,706

Total
 
$
110,998

 
$
90,109

 
$
201,107

 
$
233,437

December 31, 2018:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software/internet
 
$
49,625

 
$
65,225

 
$
114,850

 
$
131,858

Hardware
 
1,256

 
10,250

 
11,506

 
12,159

Private equity/venture capital
 
—

 
3,700

 
3,700

 
3,700

Life science/healthcare
 
17,791

 
16,276

 
34,067

 
44,446

Premium wine
 
—

 
1,301

 
1,301

 
1,365

Other
 
411

 
—

 
411

 
411

Total commercial loans
 
69,083

 
96,752

 
165,835

 
193,939

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
3,919

 
320

 
4,239

 
5,969

Other consumer loans
 
—

 
—

 
—

 
—

Total consumer loans
 
3,919

 
320

 
4,239

 
5,969

Total
 
$
73,002

 
$
97,072

 
$
170,074

 
$
199,908
Average Impaired Loans, Broken out by Portfolio Segment and Class of Financing Receivable
The following tables summarize our average impaired loans and interest income recognized on impaired loans, broken out by portfolio segment and class of financing receivable for the three months ended March 31, 2019 and 2018:
Three months ended March 31,
 
Average impaired loans
 
Interest income recognized on impaired loans
(Dollars in thousands)
 
2019

2018

2019

2018
Commercial loans:
 
 
 
 
 
 
 
 
Software/internet
 
$
104,312

 
$
108,788

 
$
603

 
$
532

Hardware
 
16,815

 
38,426

 
252

 
363

Private equity/venture capital
 
5,198

 
302

 
—

 
—

Life science/healthcare
 
44,163

 
22,679

 
347

 
37

Premium wine
 
1,256

 
2,769

 
18

 
36

Other
 
140

 
11

 
—

 
—

Total commercial loans
 
171,884

 
172,975

 
1,220

 
968

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
9,613

 
3,063

 
54

 
—

Other consumer loans
 
5

 
739

 
—

 
5

Total consumer loans
 
9,618

 
3,802

 
54

 
5

Total average impaired loans
 
$
181,502

 
$
176,777

 
$
1,274

 
$
973
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, 2019 and 2018, broken out by portfolio segment:
Three months ended March 31, 2019
 
Beginning Balance December 31, 2018
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments
 
Ending Balance March 31, 2019
(Dollars in thousands)
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
103,567

 
$
(8,254
)
 
$
1,054

 
$
(658
)
 
$
(26
)
 
$
95,683

Hardware
 
19,725

 
(253
)
 
56

 
5,384

 
209

 
25,121

Private equity/venture capital
 
98,581

 
—

 
—

 
(1,079
)
 
(42
)
 
97,460

Life science/healthcare
 
32,180

 
(23
)
 
105

 
22,672

 
880

 
55,814

Premium wine
 
3,355

 
—

 
—

 
427

 
17

 
3,799

Other
 
3,558

 
(411
)
 
—

 
59

 
2

 
3,208

Total commercial loans
 
260,966

 
(8,941
)
 
1,215

 
26,805

 
1,040

 
281,085

Total consumer loans
 
19,937

 
(59
)
 
210

 
(984
)
 
(38
)
 
19,066

Total allowance for loan losses
 
$
280,903

 
$
(9,000
)
 
$
1,425

 
$
25,821

 
$
1,002

 
$
300,151


Three months ended March 31, 2018
 
Beginning Balance December 31, 2017
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments
 
Ending Balance March 31, 2018
(Dollars in thousands)
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
96,104

 
$
(6,671
)
 
$
573

 
$
12,801

 
$
488

 
$
103,295

Hardware
 
27,614

 
(2,953
)
 
588

 
3,104

 
119

 
28,472

Private equity/venture capital
 
82,468

 
—

 
10

 
8,805

 
335

 
91,618

Life science/healthcare
 
24,924

 
(864
)
 
53

 
1,631

 
62

 
25,806

Premium wine
 
3,532

 
—

 
—

 
(161
)
 
(6
)
 
3,365

Other
 
3,941

 
(99
)
 
537

 
(906
)
 
9

 
3,482

Total commercial loans
 
238,583

 
(10,587
)
 
1,761

 
25,274

 
1,007

 
256,038

Total consumer loans
 
16,441

 
—

 
27

 
1,722

 
66

 
18,256

Total allowance for loan losses
 
$
255,024

 
$
(10,587
)
 
$
1,788

 
$
26,996

 
$
1,073

 
$
274,294


The following table summarizes the activity relating to our allowance for unfunded credit commitments for the three months ended March 31, 2019 and 2018:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2019

2018
Allowance for unfunded credit commitments, beginning balance
 
$
55,183

 
$
51,770

Provision for unfunded credit commitments
 
2,730

 
976

Foreign currency translation adjustments
 
57

 
77

Allowance for unfunded credit commitments, ending balance (1)
 
$
57,970

 
$
52,823

 
(1)
See Note 16—“Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional disclosures related to our commitments to extend credit.
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, 2019 and December 31, 2018, broken out by portfolio segment:
 
 
March 31, 2019
 
December 31, 2018
 
 
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/internet
 
$
22,770

 
$
98,934

 
$
72,913

 
$
6,137,332

 
$
28,527

 
$
114,850

 
$
75,040

 
$
6,039,905

Hardware
 
5,311

 
19,807

 
19,810

 
1,237,084

 
1,253

 
11,506

 
18,472

 
1,223,051

Private equity/venture capital
 
2,247

 
5,947

 
95,213

 
14,302,130

 
—

 
3,700

 
98,581

 
14,106,860

Life science/healthcare
 
30,730

 
67,371

 
25,084

 
2,455,360

 
7,484

 
34,067

 
24,696

 
2,351,545

Premium wine
 
—

 
1,236

 
3,799

 
1,013,739

 
—

 
1,301

 
3,355

 
958,362

Other
 
4

 
4

 
3,204

 
412,093

 
411

 
411

 
3,147

 
459,079

Total commercial loans
 
61,062

 
193,299

 
220,023

 
25,557,738

 
37,675

 
165,835

 
223,291

 
25,138,802

Total consumer loans
 
163

 
7,808

 
18,903

 
3,091,600

 
266

 
4,239

 
19,671

 
3,029,404

Total
 
$
61,225

 
$
201,107

 
$
238,926

 
$
28,649,338

 
$
37,941

 
$
170,074

 
$
242,962

 
$
28,168,206
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, 2019 and December 31, 2018:
(Dollars in thousands)
 
Pass
 
Performing (Criticized)
 
Performing Impaired (Criticized)
 
Nonperforming Impaired (Nonaccrual)
 
Total
March 31, 2019:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
5,619,634

 
$
568,799

 
$
36,336

 
$
62,598

 
$
6,287,367

Hardware
 
1,096,461

 
149,814

 
11,753

 
8,054

 
1,266,082

Private equity/venture capital
 
14,306,933

 
2,780

 
—

 
5,947

 
14,315,660

Life science/healthcare
 
2,422,438

 
104,105

 
14,427

 
52,944

 
2,593,914

Premium wine
 
945,712

 
68,756

 
968

 
268

 
1,015,704

Other
 
425,012

 
20,396

 
—

 
4

 
445,412

Total commercial loans
 
24,816,190

 
914,650

 
63,484

 
129,815

 
25,924,139

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
2,656,069

 
11,856

 
4,000

 
3,794

 
2,675,719

Other consumer loans
 
419,732

 
915

 
—

 
14

 
420,661

Total consumer loans
 
3,075,801

 
12,771

 
4,000

 
3,808

 
3,096,380

Total gross loans
 
$
27,891,991

 
$
927,421

 
$
67,484

 
$
133,623

 
$
29,020,519

December 31, 2018:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
5,574,332

 
$
520,796

 
$
48,069

 
$
66,781

 
$
6,209,978

Hardware
 
1,146,985

 
87,309

 
10,250

 
1,256

 
1,245,800

Private equity/venture capital
 
14,098,281

 
16,151

 
—

 
3,700

 
14,118,132

Life science/healthcare
 
2,291,356

 
135,653

 
16,276

 
17,791

 
2,461,076

Premium wine
 
909,965

 
49,287

 
1,017

 
284

 
960,553

Other
 
467,653

 
17,344

 
—

 
411

 
485,408

Total commercial loans
 
24,488,572

 
826,540

 
75,612

 
90,223

 
25,480,947

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
2,584,261

 
21,145

 
320

 
3,919

 
2,609,645

Other consumer loans
 
419,771

 
949

 
—

 
—

 
420,720

Total consumer loans
 
3,004,032

 
22,094

 
320

 
3,919

 
3,030,365

Total gross loans
 
$
27,492,604

 
$
848,634

 
$
75,932

 
$
94,142

 
$
28,511,312
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, 2019 and December 31, 2018:
(Dollars in thousands)
 
March 31, 2019
 
December 31, 2018
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software/internet
 
$
55,493

 
$
58,089

Hardware
 
11,759

 
9,665

Life science/healthcare
 
16,532

 
12,738

Premium wine
 
2,806

 
2,883

Total commercial loans
 
86,590

 
83,375

Consumer loans:
 
 
 
 
Other consumer loans
 
318

 
320

Total loans modified in TDRs
 
$
86,908

 
$
83,695
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, 2019 and 2018:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2019

2018
Loans modified in TDRs during the period:
 
 
 
 
Commercial loans:
 
 
 
 
Software/internet
 
$
677

 
$
756

Hardware
 
—

 
1,559

Life science/healthcare
 
5,000

 
1,239

Total commercial loans
 
5,677

 
3,554

Consumer loans:
 
 
 
 
Other consumer loans
 
—

 
326

Total loans modified in TDRs during the period (1)
 
$
5,677

 
$
3,880

 
 
(1)
There were $2.2 million of partial charge-offs for the three months ended March 31, 2019 and no partial charge-offs during the three months ended March 31, 2018
Troubled Debt Restructurings On Financing Receivables Subsequently Defaulted Table
The following table summarizes the recorded investment in loans modified in TDRs within the previous 12 months that subsequently defaulted during the three months ended March 31, 2019 and 2018:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2019
 
2018
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
Commercial loans:
 
 
 
 
Software/internet
 
$
—

 
$
3,032

Life science/healthcare
 
5,000

 
—

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
5,000

 
$
3,032