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Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments
Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments
We serve a variety of commercial clients in the technology, life science/healthcare, private equity/venture capital and premium wine industries. Our technology clients generally tend to be in the industries of hardware (semiconductors, communications, data, storage and electronics), software/internet (such as infrastructure software, applications, software services, digital content and advertising technology), and energy and resource innovation ("ERI"). Because of the diverse nature of ERI products and services, for our loan-related reporting purposes, ERI-related loans are reported under our hardware, software/internet, life science/healthcare and other commercial loan categories, as applicable. Our life science/healthcare clients primarily tend to be in the industries of biotechnology, medical devices, healthcare information technology and healthcare services. Loans made to private equity/venture capital firm clients typically enable them to fund investments prior to their receipt of funds from capital calls. Loans to the premium wine industry focus on vineyards and wineries that produce grapes and wines of high quality.
In addition to commercial loans, we make consumer loans through SVB Private Bank and provide real estate secured loans to eligible employees through our EHOP. Our private banking clients are primarily private equity/venture capital professionals and executive leaders in the innovation companies they support. These products and services include real estate secured home equity lines of credit, which may be used to finance real estate investments and loans used to purchase, renovate or refinance personal residences. These products and services also include restricted stock purchase loans and capital call lines of credit.
We also provide community development loans made as part of our responsibilities under the Community Reinvestment Act. These loans are included within “Construction loans” below and are primarily secured by real estate.
The composition of loans, net of unearned income of $163 million and $173 million at December 31, 2019 and 2018, respectively, is presented in the following table:
 
 
December 31,
(Dollars in thousands)
 
2019
 
2018
Commercial loans:
 
 
 
 
Software/internet
 
$
6,199,548

 
$
6,154,755

Hardware
 
1,371,159

 
1,234,557

Private equity/venture capital
 
17,801,324

 
14,110,560

Life science/healthcare
 
2,368,048

 
2,385,612

Premium wine
 
267,487

 
249,266

Other
 
420,555

 
321,978

Total commercial loans
 
28,428,121

 
24,456,728

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
820,730

 
710,397

Consumer loans (2)
 
3,286,737

 
2,612,971

Other
 
38,880

 
40,435

Total real estate secured loans
 
4,146,347

 
3,363,803

Construction loans
 
100,219

 
97,077

Consumer loans
 
489,949

 
420,672

Total loans, net of unearned income (3)
 
$
33,164,636

 
$
28,338,280

 
(1)
Included in our premium wine portfolio are gross construction loans of $83 million and $99 million at December 31, 2019 and 2018, respectively.
(2)
Consumer loans secured by real estate at December 31, 2019 and 2018 were comprised of the following:
 
 
December 31,
(Dollars in thousands)
 
2019
 
2018
Loans for personal residence
 
$
2,829,880

 
$
2,251,292

Loans to eligible employees
 
401,396

 
290,194

Home equity lines of credit
 
55,461

 
71,485

Consumer loans secured by real estate
 
$
3,286,737

 
$
2,612,971


(3)
Included within our total loan portfolio are credit card loans of $395 million and $335 million at December 31, 2019 and 2018, respectively.
Credit Quality
The composition of loans, net of unearned income of $163 million and $173 million at December 31, 2019 and 2018, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
 
 
December 31,
(Dollars in thousands)
 
2019
 
2018
Commercial loans:
 
 
 
 
Software/internet
 
$
6,199,548

 
$
6,154,755

Hardware
 
1,371,159

 
1,234,557

Private equity/venture capital
 
17,801,324

 
14,110,560

Life science/healthcare
 
2,368,048

 
2,385,612

Premium wine
 
1,088,217

 
959,663

Other
 
559,654

 
459,490

Total commercial loans
 
29,387,950

 
25,304,637

Consumer loans:
 
 
 
 
Real estate secured loans
 
3,286,737

 
2,612,971

Other consumer loans
 
489,949

 
420,672

Total consumer loans
 
3,776,686

 
3,033,643

Total loans, net of unearned income
 
$
33,164,636

 
$
28,338,280


The following table summarizes the aging of our gross loans, broken out by portfolio segment and class of financing receivable as of December 31, 2019 and 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
December 31, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
19,839

 
$
4,225

 
$
—

 
$
24,064

 
$
6,136,230

 
$
—

Hardware
 
104

 
18,084

 
—

 
18,188

 
1,357,379

 
—

Private equity/venture capital
 
97,893

 
383

 
3,150

 
101,426

 
17,715,964

 
3,150

Life science/healthcare
 
445

 
8,420

 
—

 
8,865

 
2,387,203

 
—

Premium wine
 
7,543

 
—

 
—

 
7,543

 
1,070,111

 
—

Other
 
9

 
24

 
—

 
33

 
579,446

 
—

Total commercial loans
 
125,833

 
31,136

 
3,150

 
160,119

 
29,246,333

 
3,150

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
6,282

 
—

 
365

 
6,647

 
3,271,318

 
365

Other consumer loans
 
164

 
283

 
—

 
447

 
489,831

 
—

Total consumer loans
 
6,446

 
283

 
365

 
7,094

 
3,761,149

 
365

Total gross loans excluding impaired loans
 
132,279

 
31,419

 
3,515

 
167,213

 
33,007,482

 
3,515

Impaired loans
 
5,096

 
6,805

 
12,473

 
24,374

 
128,635

 
—

Total gross loans
 
$
137,375

 
$
38,224

 
$
15,988

 
$
191,587

 
$
33,136,117

 
$
3,515

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






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, 2019 and 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   
December 31, 2019:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software/internet
 
$
64,100

 
$
31,472

 
$
95,572

 
$
109,736

Hardware
 
2,143

 
3,315

 
5,458

 
10,049

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science/healthcare
 
25,941

 
5,671

 
31,612

 
70,600

Premium wine
 
204

 
11,718

 
11,922

 
12,010

Other
 
1,284

 
1,681

 
2,965

 
3,114

Total commercial loans
 
93,672

 
53,857

 
147,529

 
205,509

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,766

 
3,714

 
5,480

 
8,527

Total consumer loans
 
1,766

 
3,714

 
5,480

 
8,527

Total
 
$
95,438

 
$
57,571

 
$
153,009

 
$
214,036

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

Total consumer loans
 
3,919

 
320

 
4,239

 
5,969

Total
 
$
73,002

 
$
97,072

 
$
170,074

 
$
199,908



The following table summarizes our average impaired loans and interest income recognized on impaired loans, broken out by portfolio segment and class of financing receivable during 2019, 2018 and 2017:
Year ended December 31,
(Dollars in thousands)
 
Average impaired loans
 
Interest income recognized on impaired loans
 
2019

2018

2017
 
2019
 
2018
 
2017
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
88,628

 
$
112,493

 
$
119,557

 
$
2,813

 
$
1,513

 
$
2,263

Hardware
 
12,500

 
28,540

 
35,022

 
464

 
312

 
1,061

Private equity/venture capital
 
2,264

 
1,327

 
556

 
—

 
—

 
—

Life science/healthcare
 
44,827

 
30,144

 
30,842

 
919

 
756

 
90

Premium wine
 
2,912

 
2,605

 
3,249

 
311

 
68

 
152

Other
 
2,050

 
171

 
576

 
21

 
—

 
—

Total commercial loans
 
153,181

 
175,280

 
189,802

 
4,528

 
2,649

 
3,566

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
7,159

 
4,028

 
1,514

 
54

 
15

 
—

Other consumer loans
 
7

 
358

 
1,804

 
—

 
—

 
—

Total consumer loans
 
7,166

 
4,386

 
3,318

 
54

 
15

 
—

Total average impaired loans
 
$
160,347

 
$
179,666

 
$
193,120

 
$
4,582

 
$
2,664

 
$
3,566


The following tables summarize the activity relating to our allowance for loan losses for 2019, 2018 and 2017 broken out by portfolio segment:
Year ended December 31, 2019
(Dollars in thousands)
 
Beginning Balance December 31, 2018
 
Charge-offs
 
Recoveries
 
Provision for Loan Losses
 
Foreign Currency Translation Adjustments
 
Ending Balance December 31, 2019
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
103,567

 
$
(46,930
)
 
$
11,363

 
$
31,766

 
$
457

 
$
100,223

Hardware
 
19,725

 
(10,056
)
 
7,069

 
2,740

 
166

 
19,644

Private equity/venture capital
 
98,581

 
(2,047
)
 
2,047

 
16,989

 
235

 
115,805

Life science/healthcare
 
32,180

 
(31,950
)
 
267

 
38,178

 
570

 
39,245

Premium wine
 
3,355

 
(174
)
 
—

 
1,813

 
154

 
5,148

Other
 
3,558

 
(415
)
 
36

 
328

 
(154
)
 
3,353

Total commercial loans
 
260,966

 
(91,572
)
 
20,782

 
91,814

 
1,428

 
283,418

Consumer loans
 
19,937

 
(1,031
)
 
256

 
2,369

 
(25
)
 
21,506

Total allowance for loan losses
 
$
280,903

 
$
(92,603
)
 
$
21,038

 
$
94,183

 
$
1,403

 
$
304,924

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

 
$
(42,315
)
 
$
5,664

 
$
45,068

 
$
(954
)
 
$
103,567

Hardware
 
27,614

 
(16,148
)
 
1,849

 
6,555

 
(145
)
 
19,725

Private equity/venture capital
 
82,468

 
(112
)
 
13

 
16,485

 
(273
)
 
98,581

Life science/healthcare
 
24,924

 
(6,662
)
 
348

 
14,347

 
(777
)
 
32,180

Premium wine
 
3,532

 
—

 
—

 
(182
)
 
5

 
3,355

Other
 
3,941

 
(2,391
)
 
3,275

 
(1,320
)
 
53

 
3,558

Total commercial loans
 
238,583

 
(67,628
)
 
11,149

 
80,953

 
(2,091
)
 
260,966

Consumer loans
 
16,441

 
(289
)
 
487

 
3,339

 
(41
)
 
19,937

Total allowance for loan losses
 
$
255,024

 
$
(67,917
)
 
$
11,636

 
$
84,292

 
$
(2,132
)
 
$
280,903


    
Year ended December 31, 2017
(Dollars in thousands)
 
Beginning Balance December 31, 2016
 
Charge-offs
 
Recoveries
 
Provision for (Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments
 
Ending Balance December 31, 2017
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
97,388

 
$
(45,012
)
 
$
4,649

 
$
38,462

 
$
617

 
$
96,104

Hardware
 
31,166

 
(10,414
)
 
487

 
6,051

 
324

 
27,614

Private equity/venture capital
 
50,299

 
(323
)
 
—

 
31,625

 
867

 
82,468

Life science/healthcare
 
25,446

 
(8,210
)
 
189

 
7,414

 
85

 
24,924

Premium wine
 
4,115

 
—

 
—

 
(540
)
 
(43
)
 
3,532

Other
 
4,768

 
(1,156
)
 
1,850

 
(1,459
)
 
(62
)
 
3,941

Total commercial loans
 
213,182

 
(65,115
)
 
7,175

 
81,553

 
1,788

 
238,583

Consumer loans
 
12,184

 
(1,567
)
 
1,363

 
4,386

 
75

 
16,441

Total allowance for loan losses
 
$
225,366

 
$
(66,682
)
 
$
8,538

 
$
85,939

 
$
1,863

 
$
255,024


The following table summarizes the activity relating to our allowance for unfunded credit commitments for 2019, 2018 and 2017:
 
 
Year ended December 31,
(Dollars in thousands)
 
2019
 
2018
 
2017
Allowance for unfunded credit commitments, beginning balance
 
$
55,183

 
$
51,770

 
$
45,265

Provision for unfunded credit commitments
 
12,233

 
3,578

 
6,365

Foreign currency translation adjustments
 
240

 
(165
)
 
140

Allowance for unfunded credit commitments, ending balance (1)
 
$
67,656

 
$
55,183

 
$
51,770

 
(1)
The “allowance for unfunded credit commitments” is included as a component of “other liabilities” on our consolidated balance sheets. See Note 22—“Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional disclosures related to our commitments to extend credit.
The following table summarizes the allowance for loan losses individually and collectively evaluated for impairment as of December 31, 2019 and 2018, broken out by portfolio segment:
 
 
December 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
 
$
26,613

 
$
95,572

 
$
73,610

 
$
6,103,976

 
$
28,527

 
$
114,850

 
$
75,040

 
$
6,039,905

Hardware
 
1,214

 
5,458

 
18,430

 
1,365,701

 
1,253

 
11,506

 
18,472

 
1,223,051

Private equity/venture capital
 
—

 
—

 
115,805

 
17,801,324

 
—

 
3,700

 
98,581

 
14,106,860

Life science/healthcare
 
16,414

 
31,612

 
22,831

 
2,336,436

 
7,484

 
34,067

 
24,696

 
2,351,545

Premium wine
 
204

 
11,922

 
4,944

 
1,076,295

 
—

 
1,301

 
3,355

 
958,362

Other
 
203

 
2,965

 
3,150

 
556,689

 
411

 
411

 
3,147

 
459,079

Total commercial loans
 
44,648

 
147,529

 
238,770

 
29,240,421

 
37,675

 
165,835

 
223,291

 
25,138,802

Total consumer loans
 
211

 
5,480

 
21,295

 
3,771,206

 
266

 
4,239

 
19,671

 
3,029,404

Total
 
$
44,859

 
$
153,009

 
$
260,065

 
$
33,011,627

 
$
37,941

 
$
170,074

 
$
242,962

 
$
28,168,206


Credit Quality Indicators
For each individual client, we establish an internal credit risk rating for that loan, which is used for assessing and monitoring credit risk as well as performance of the loan and the overall portfolio. Our internal credit risk ratings are also used to summarize the risk of loss due to failure by an individual borrower to repay the loan. For our internal credit risk ratings, each individual loan is given a risk rating of 1 through 10. Loans risk-rated 1 through 4 are performing loans and translate to an internal rating of “Pass,” with loans risk-rated 1 being cash secured. Loans risk-rated 5 through 7 are performing loans; however, we consider them as demonstrating higher risk, which requires more frequent review of the individual exposures; these translate to an internal rating of “Performing (Criticized).” When full repayment of a criticized loan has been deemed improbable under the original contractual terms but full repayment remains probable overall, the loan is considered to be a “Performing Impaired (Criticized)” loan. All of our nonaccrual loans are risk-rated 8 or 9 and are classified under the nonperforming impaired category. (For a further description of nonaccrual loans, refer to Note 2—“Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report). Loans rated 10 are charged-off and are not included as part of our loan portfolio balance. We review our credit quality indicators for performance and appropriateness of risk ratings as part of our evaluation process for our allowance for loan losses.

The following table summarizes the credit quality indicators, broken out by portfolio segment and class of financing receivables as of December 31, 2019 and 2018:
(Dollars in thousands)
 
Pass
 
  Performing 
(Criticized)  
 
Performing Impaired (Criticized)
 
Nonperforming Impaired (Nonaccrual)
 
Total
December 31, 2019:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
5,704,283

 
$
456,011

 
$
28,417

 
$
67,155

 
$
6,255,866

Hardware
 
1,266,077

 
109,490

 
3,315

 
2,143

 
1,381,025

Private equity/venture capital
 
17,813,128

 
4,262

 
—

 
—

 
17,817,390

Life science/healthcare
 
2,197,679

 
198,389

 
5,211

 
26,401

 
2,427,680

Premium wine
 
1,053,021

 
24,633

 
11,717

 
205

 
1,089,576

Other
 
571,040

 
8,439

 
1,680

 
1,285

 
582,444

Total commercial loans
 
28,605,228

 
801,224

 
50,340


97,189

 
29,553,981

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
3,266,748

 
11,217

 
—

 
5,480

 
3,283,445

Other consumer loans
 
489,903

 
375

 
—

 
—

 
490,278

Total consumer loans
 
3,756,651

 
11,592

 
—

 
5,480

 
3,773,723

Total gross loans
 
$
32,361,879

 
$
812,816

 
$
50,340

 
$
102,669

 
$
33,327,704

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


Troubled Debt Restructurings
As of December 31, 2019 we had 23 TDRs with a total carrying value of $109.0 million where concessions have been granted to borrowers experiencing financial difficulties, in an attempt to maximize collection. This compares to 17 TDRs with a total carrying value of $83.7 million as of December 31, 2018. There were unfunded commitments available for funding of $0.8 million to the clients associated with these TDRs as of December 31, 2019. The following table summarizes our loans modified in TDRs, broken out by portfolio segment and class of financing receivables at December 31, 2019 and 2018:
 
 
December 31,
(Dollars in thousands)
 
2019
 
2018
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software/internet
 
$
71,136

 
$
58,089

Hardware
 
1,685

 
9,665

Life science/healthcare
 
20,600

 
12,738

Premium wine
 
13,457

 
2,883

Total commercial loans
 
106,878

 
83,375

Consumer loans:
 
 
 
 
Other consumer loans
 
2,104

 
320

Total loans modified in TDRs
 
$
108,982

 
$
83,695


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 2019, 2018 and 2017:
 
 
Year ended December 31,
(Dollars in thousands)
 
2019
 
2018
 
2017
Loans modified in TDRs during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software/internet
 
$
62,367

 
$
30,429

 
$
42,184

Hardware
 
1,685

 
9,665

 
51,132

Private equity/venture capital
 
—

 
—

 
350

Life science/healthcare
 
13,309

 
660

 
—

Premium wine
 
11,017

 
—

 
177

Total commercial loans
 
88,378

 
40,754

 
93,843

Consumer loans:
 
 
 
 
 
 
Other consumer loans
 
1,793

 
320

 
—

Total loans modified in TDRs during the period (1)
 
$
90,171

 
$
41,074

 
$
93,843

 
(1)
There were $11.3 million, $4.6 million and $3.0 million of partial charge-offs during 2019, 2018 and 2017, respectively.
During 2019, $86.9 million of new TDRs were modified through payment deferrals granted to our clients and $3.3 million were modified through partial forgiveness of principal. During 2018, all new TDRs of $41.1 million were modified through payment deferrals granted to our clients. During 2017, $93.5 million of new TDRs were modified through payment deferrals granted to our clients and $0.3 million were modified through partial forgiveness of principal.
The related allowance for loan losses for the majority of our TDRs is determined on an individual basis by comparing the carrying value of the loan to the present value of the estimated future cash flows, discounted at the pre-modification contractual interest rate. For certain TDRs, the related allowance for loan losses is determined based on the fair value of the collateral if the loan is collateral dependent.
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 2019, 2018 and 2017:
 
 
December 31,
(Dollars in thousands)
 
2019
 
2018
 
2017
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software/internet
 
$
37,294

 
$
—

 
$
—

Life science/healthcare
 
10,639

 
—

 
—

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
47,933

 
$
—

 
$
—


Charge-offs and defaults on previously restructured loans are evaluated to determine the impact to the allowance for loan losses, if any. The evaluation of these defaults may impact the assumptions used in calculating the reserve on other TDRs and impaired loans as well as management’s overall outlook of macroeconomic factors that affect the reserve on the loan portfolio as a whole. After evaluating the charge-offs and defaults experienced on our TDRs we determined that no change to our reserving methodology for TDRs was necessary to determine the allowance for loan losses as of December 31, 2019.