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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2012
Text Block [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $73.8 million and $60.2 million at September 30, 2012 and December 31, 2011, respectively, is presented in the following table:
(Dollars in thousands)
 
September 30, 2012
 
December 31, 2011
Commercial loans:
 
 
 
 
Software
 
$
2,952,866

 
$
2,492,849

Hardware
 
1,192,716

 
952,303

Venture capital/private equity
 
1,393,943

 
1,117,419

Life science
 
1,027,693

 
863,737

Premium wine
 
133,810

 
130,245

Other
 
309,970

 
342,147

Total commercial loans
 
7,010,998

 
5,898,700

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
379,837

 
345,988

Consumer loans (2)
 
609,370

 
534,001

Total real estate secured loans
 
989,207

 
879,989

Construction loans
 
48,558

 
30,256

Consumer loans
 
143,606

 
161,137

Total loans, net of unearned income (3)
 
$
8,192,369

 
$
6,970,082

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $148.4 million and $110.8 million at September 30, 2012 and December 31, 2011, respectively.
(2)
Consumer loans secured by real estate at September 30, 2012 and December 31, 2011 were comprised of the following:
(Dollars in thousands)
 
September 30, 2012
 
December 31, 2011
Loans for personal residence
 
$
432,004

 
$
350,359

Loans to eligible employees
 
107,969

 
99,704

Home equity lines of credit
 
69,397

 
83,938

Consumer loans secured by real estate
 
$
609,370

 
$
534,001

(3)
Included within our total loan portfolio are credit card loans of $66.2 million and $49.7 million at September 30, 2012 and December 31, 2011, 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 $73.8 million and $60.2 million at September 30, 2012 and December 31, 2011, respectively, broken out by portfolio segment and class of financing receivable is as follows:
(Dollars in thousands)
 
September 30,
2012
 
December 31,
2011
Commercial loans:
 
 
 
 
Software
 
$
2,952,866

 
$
2,492,849

Hardware
 
1,192,716

 
952,303

Venture capital/private equity
 
1,393,943

 
1,117,419

Life science
 
1,027,693

 
863,737

Premium wine
 
513,647

 
476,233

Other
 
358,528

 
372,403

Total commercial loans
 
7,439,393

 
6,274,944

Consumer loans:
 
 
 
 
Real estate secured loans
 
609,370

 
534,001

Other consumer loans
 
143,606

 
161,137

Total consumer loans
 
752,976

 
695,138

Total loans, net of unearned income
 
$
8,192,369

 
$
6,970,082
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 September 30, 2012 and December 31, 2011:
(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
September 30, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
$
5,323

 
$
273

 
$
—

 
$
5,596

 
$
2,975,008

 
$
—

Hardware
 
8,901

 
181

 
5,000

 
14,082

 
1,163,848

 
5,000

Venture capital/private equity
 
1,651

 
—

 
—

 
1,651

 
1,406,695

 
—

Life science
 
8,646

 
1,875

 
—

 
10,521

 
1,027,806

 
—

Premium wine
 
49

 
—

 
—

 
49

 
512,621

 
—

Other
 
74

 
—

 
—

 
74

 
358,862

 
—

Total commercial loans
 
24,644

 
2,329

 
5,000

 
31,973

 
7,444,840

 
5,000

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
—

 
—

 
—

 
607,117

 
—

Other consumer loans
 
—

 
—

 
—

 
—

 
142,841

 
—

Total consumer loans
 
—

 
—

 
—

 
—

 
749,958

 
—

Total gross loans excluding impaired loans
 
24,644

 
2,329

 
5,000

 
31,973

 
8,194,798

 
5,000

Impaired loans
 
331

 
501

 
2,953

 
3,785

 
35,612

 
—

Total gross loans
 
$
24,975

 
$
2,830

 
$
7,953

 
$
35,758

 
$
8,230,410

 
$
5,000

December 31, 2011:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
$
415

 
$
1,006

 
$
—

 
$
1,421

 
$
2,515,327

 
$
—

Hardware
 
1,951

 
45

 
—

 
1,996

 
954,690

 
—

Venture capital/private equity
 
45

 
—

 
—

 
45

 
1,128,475

 
—

Life science
 
398

 
78

 
—

 
476

 
871,626

 
—

Premium wine
 
1

 
174

 
—

 
175

 
475,406

 
—

Other
 
15

 
—

 
—

 
15

 
370,539

 
—

Total commercial loans
 
2,825

 
1,303

 
—

 
4,128

 
6,316,063

 
—

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
—

 
—

 
—

 
515,534

 
—

Other consumer loans
 
590

 
—

 
—

 
590

 
157,389

 
—

Total consumer loans
 
590

 
—

 
—

 
590

 
672,923

 
—

Total gross loans excluding impaired loans
 
3,415

 
1,303

 
—

 
4,718

 
6,988,986

 
—

Impaired loans
 
1,350

 
1,794

 
6,613

 
9,757

 
26,860

 
—

Total gross loans
 
$
4,765

 
$
3,097

 
$
6,613

 
$
14,475

 
$
7,015,846

 
$
—
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 September 30, 2012 and December 31, 2011:
(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    
September 30, 2012:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
2,634

 
$
182

 
$
2,816

 
$
3,324

Hardware
 
27,129

 
—

 
27,129

 
42,415

Life Science
 
—

 
—

 
—

 
—

Premium wine
 
—

 
3,079

 
3,079

 
3,317

Other
 
—

 
2,745

 
2,745

 
6,894

Total commercial loans
 
29,763

 
6,006

 
35,769

 
55,950

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
120

 
2,288

 
2,408

 
7,407

Other consumer loans
 
1,220

 
—

 
1,220

 
1,371

Total consumer loans
 
1,340

 
2,288

 
3,628

 
8,778

Total
 
$
31,103

 
$
8,294

 
$
39,397

 
$
64,728

December 31, 2011:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
1,142

 
$
—

 
$
1,142

 
$
1,540

Hardware
 
4,754

 
429

 
5,183

 
8,843

Life science
 
—

 
311

 
311

 
523

Premium wine
 
—

 
3,212

 
3,212

 
3,341

Other
 
4,303

 
1,050

 
5,353

 
9,104

Total commercial loans
 
10,199

 
5,002

 
15,201

 
23,351

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
18,283

 
18,283

 
22,410

Other consumer loans
 
3,133

 
—

 
3,133

 
3,197

Total consumer loans
 
3,133

 
18,283

 
21,416

 
25,607

Total
 
$
13,332

 
$
23,285

 
$
36,617

 
$
48,958
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 during the three and nine months ended September 30, 2012 and 2011:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2012
 
2011
 
2012
 
2011
Average impaired loans:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
2,689

 
$
2,562

 
$
2,040

 
$
2,652

Hardware
 
18,490

 
7,071

 
17,407

 
6,086

Life science
 
—

 
827

 
78

 
1,498

Premium wine
 
3,093

 
1,954

 
3,334

 
2,345

Other
 
2,619

 
7,604

 
3,590

 
4,453

Total commercial loans
 
26,891

 
20,018

 
26,449

 
17,034

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
2,411

 
18,746

 
5,967

 
19,476

Other consumer loans
 
1,266

 
1,107

 
2,152

 
369

Total consumer loans
 
3,677

 
19,853

 
8,119

 
19,845

Total average impaired loans
 
$
30,568

 
$
39,871

 
$
34,568

 
$
36,879
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 nine months ended September 30, 2012 and 2011, broken out by portfolio segment:
Three months ended September 30, 2012 (dollars in thousands)
 
Beginning Balance June 30, 2012
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance September 30, 2012
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
37,981

 
$
—

 
$
374

 
$
(1,110
)
 
$
37,245

Hardware
 
22,632

 
(1,849
)
 
106

 
6,796

 
27,685

Venture capital/private equity
 
9,652

 
—

 
—

 
991

 
10,643

Life science
 
11,660

 
(2,781
)
 
3

 
3,281

 
12,163

Premium wine
 
3,396

 
—

 
228

 
(463
)
 
3,161

Other
 
4,942

 
(7
)
 
30

 
(1,708
)
 
3,257

Total commercial loans
 
90,263

 
(4,637
)
 
741

 
7,787

 
94,154

Consumer loans
 
7,903

 
—

 
466

 
(999
)
 
7,370

Total allowance for loan losses
 
$
98,166

 
$
(4,637
)
 
$
1,207

 
$
6,788

 
$
101,524

Nine months ended September 30, 2012 (dollars in thousands)
 
Beginning Balance December 31, 2011
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance September 30, 2012
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
38,263

 
$
(2,977
)
 
$
4,462

 
$
(2,503
)
 
$
37,245

Hardware
 
16,810

 
(16,110
)
 
540

 
26,445

 
27,685

Venture capital/private equity
 
7,319

 
—

 
—

 
3,324

 
10,643

Life science
 
10,243

 
(3,016
)
 
316

 
4,620

 
12,163

Premium wine
 
3,914

 
(584
)
 
493

 
(662
)
 
3,161

Other
 
5,817

 
(2,463
)
 
1,181

 
(1,278
)
 
3,257

Total commercial loans
 
82,366

 
(25,150
)
 
6,992

 
29,946

 
94,154

Consumer loans
 
7,581

 
(607
)
 
1,026

 
(630
)
 
7,370

Total allowance for loan losses
 
$
89,947

 
$
(25,757
)
 
$
8,018

 
$
29,316

 
$
101,524

Three months ended September 30, 2011 (dollars in thousands)
 
Beginning Balance June 30, 2011
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance September 30, 2011
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
31,873

 
$
(3,125
)
 
$
2,718

 
$
4,899

 
$
36,365

Hardware
 
16,042

 
(4,813
)
 
44

 
2,304

 
13,577

Venture capital/private equity
 
8,307

 
—

 
—

 
(497
)
 
7,810

Life science
 
7,225

 
(310
)
 
3,359

 
(2,110
)
 
8,164

Premium wine
 
4,009

 
—

 
360

 
(354
)
 
4,015

Other
 
5,869

 
—

 
64

 
(359
)
 
5,574

Total commercial loans
 
73,325

 
(8,248
)
 
6,545

 
3,883

 
75,505

Consumer loans
 
8,830

 
—

 
4,025

 
(3,114
)
 
9,741

Total allowance for loan losses
 
$
82,155

 
$
(8,248
)
 
$
10,570

 
$
769

 
$
85,246

Nine months ended September 30, 2011 (dollars in thousands)
 
Beginning Balance December 31, 2010
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance September 30, 2011
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
29,288

 
$
(4,747
)
 
$
10,638

 
$
1,186

 
$
36,365

Hardware
 
14,688

 
(4,828
)
 
356

 
3,361

 
13,577

Venture capital/private equity
 
8,241

 
—

 
—

 
(431
)
 
7,810

Life science
 
9,077

 
(3,972
)
 
4,487

 
(1,428
)
 
8,164

Premium wine
 
5,492

 
(449
)
 
1,090

 
(2,118
)
 
4,015

Other
 
5,318

 
(2,867
)
 
471

 
2,652

 
5,574

Total commercial loans
 
72,104

 
(16,863
)
 
17,042

 
3,222

 
75,505

Consumer loans
 
10,523

 
—

 
4,584

 
(5,366
)
 
9,741

Total allowance for loan losses
 
$
82,627

 
$
(16,863
)
 
$
21,626

 
$
(2,144
)
 
$
85,246
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 September 30, 2012 and December 31, 2011, broken out by portfolio segment:
 
 
September 30, 2012
 
December 31, 2011
(Dollars in thousands)
 
Individually Evaluated for  
Impairment
 
Collectively Evaluated for  
Impairment
 
Individually
Evaluated for  
Impairment
 
Collectively
Evaluated for  
Impairment
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
653

 
$
36,592

 
$
526

 
$
37,737

Hardware
 
5,061

 
22,624

 
1,261

 
15,549

Venture capital/private equity
 
—

 
10,643

 
—

 
7,319

Life science
 
—

 
12,163

 
—

 
10,243

Premium wine
 
—

 
3,161

 
—

 
3,914

Other
 
—

 
3,257

 
1,180

 
4,637

Total commercial loans
 
5,714

 
88,440

 
2,967

 
79,399

Consumer loans
 
289

 
7,081

 
740

 
6,841

Total allowance for loan losses
 
$
6,003

 
$
95,521

 
$
3,707

 
$
86,240
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 September 30, 2012 and December 31, 2011:
(Dollars in thousands)
 
Pass
 
  Performing  
  (Criticized)  
 
Impaired  
 
Total
September 30, 2012:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
2,751,238

 
$
229,366

 
$
2,816

 
$
2,983,420

Hardware
 
1,069,973

 
107,957

 
27,129

 
1,205,059

Venture capital/private equity
 
1,406,746

 
1,600

 
—

 
1,408,346

Life science
 
939,092

 
99,235

 
—

 
1,038,327

Premium wine
 
501,507

 
11,163

 
3,079

 
515,749

Other
 
335,201

 
23,735

 
2,745

 
361,681

Total commercial loans
 
7,003,757

 
473,056

 
35,769


7,512,582

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
588,678

 
18,439

 
2,408

 
609,525

Other consumer loans
 
131,548

 
11,293

 
1,220

 
144,061

Total consumer loans
 
720,226

 
29,732

 
3,628

 
753,586

Total gross loans
 
$
7,723,983

 
$
502,788

 
$
39,397

 
$
8,266,168

December 31, 2011:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
2,290,497

 
$
226,251

 
$
1,142

 
$
2,517,890

Hardware
 
839,230

 
117,456

 
5,183

 
961,869

Venture capital/private equity
 
1,120,373

 
8,147

 
—

 
1,128,520

Life science
 
748,129

 
123,973

 
311

 
872,413

Premium wine
 
434,309

 
41,272

 
3,212

 
478,793

Other
 
353,434

 
17,120

 
5,353

 
375,907

Total commercial loans
 
5,785,972

 
534,219

 
15,201

 
6,335,392

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
497,060

 
18,474

 
18,283

 
533,817

Other consumer loans
 
151,101

 
6,878

 
3,133

 
161,112

Total consumer loans
 
648,161

 
25,352

 
21,416

 
694,929

Total gross loans
 
$
6,434,133

 
$
559,571

 
$
36,617

 
$
7,030,321
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 September 30, 2012 and December 31, 2011:
 
(Dollars in thousands)
 
September 30, 2012
 
December 31, 2011
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software
 
$
2,459

 
$
1,142

Hardware
 
12,193

 
5,183

Premium wine
 
1,971

 
1,949

Other
 
3,281

 
4,934

Total commercial loans
 
19,904

 
13,208

Consumer loans:
 
 
 
 
Real estate secured loans
 
2,363

 
17,934

Other consumer loans
 
1,220

 
3,133

Total consumer loans
 
3,583

 
21,067

Total
 
$
23,487

 
$
34,275
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 nine months ended September 30, 2012 and 2011:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2012
 
2011
 
2012
 
2011
Loans modified in TDRs during the period:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
1,969

 
$
381

 
$
1,969

 
$
941

Hardware
 
—

 
801

 
11,677

 
2,674

Premium wine
 
—

 
—

 
156

 
1,993

Other
 
—

 
2,247

 
2,237

 
2,247

Total commercial loans
 
1,969

 
3,429

 
16,039

 
7,855

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
—

 
392

 
—

Other consumer loans
 
—

 
—

 
—

 
3,322

Total consumer loans
 
—

 
—

 
392

 
3,322

Total loans modified in TDR’s during the period (1)
 
$
1,969

 
$
3,429

 
$
16,431

 
$
11,177

 
 
(1)
During the three and nine months ended September 30, 2012, we had partial charge-offs of $1.1 million and $11.0 million, respectively, on loans classified as TDRs. There were $0.6 million partial charge-offs on loans classified as TDRs during the three and nine months ended September 30, 2011.
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 the three and nine months ended September 30, 2012 and 2011, broken out by portfolio segment and class of financing receivable:
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2012
 
2011
 
2012
 
2011
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
—

 
$
64

 
$
—

 
$
64

Hardware
 
515

 
1,206

 
515

 
3,079

Premium wine
 
—

 
1,993

 
—

 
1,993

Total commercial loans
 
515

 
3,263

 
515

 
5,136

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
120

 
—

 
120

 
—

Other consumer loans
 
—

 
3,322

 
—

 
3,322

Total consumer loans
 
120

 
3,322

 
120

 
3,322

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
635

 
$
6,585

 
$
635

 
$
8,458