XML 46 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2014
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $89 million at both June 30, 2014 and December 31, 2013, respectively, is presented in the following table:
(Dollars in thousands)
 
June 30, 2014
 
December 31, 2013
Commercial loans:
 
 
 
 
Software
 
$
4,212,190

 
$
4,102,636

Hardware
 
1,144,144

 
1,213,032

Venture capital/private equity
 
2,646,397

 
2,386,054

Life science
 
1,166,231

 
1,170,220

Premium wine
 
174,837

 
149,841

Other
 
244,914

 
288,904

Total commercial loans
 
9,588,713

 
9,310,687

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
546,876

 
514,993

Consumer loans (2)
 
984,583

 
873,255

Other
 
30,355

 
30,743

Total real estate secured loans
 
1,561,814

 
1,418,991

Construction loans
 
76,221

 
76,997

Consumer loans
 
121,963

 
99,711

Total loans, net of unearned income (3)
 
$
11,348,711

 
$
10,906,386

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $107 million and $112 million at June 30, 2014 and December 31, 2013, respectively.
(2)
Consumer loans secured by real estate at June 30, 2014 and December 31, 2013 were comprised of the following:
(Dollars in thousands)
 
June 30, 2014
 
December 31, 2013
Loans for personal residence
 
$
785,914

 
$
685,327

Loans to eligible employees
 
129,116

 
121,548

Home equity lines of credit
 
69,553

 
66,380

Consumer loans secured by real estate
 
$
984,583

 
$
873,255


(3)
Included within our total loan portfolio are credit card loans of $109 million and $85 million at June 30, 2014 and December 31, 2013, 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 $89 million at both June 30, 2014 and December 31, 2013, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
(Dollars in thousands)
 
June 30, 2014
 
December 31, 2013
Commercial loans:
 
 
 
 
Software
 
$
4,212,190

 
$
4,102,636

Hardware
 
1,144,144

 
1,213,032

Venture capital/private equity
 
2,646,397

 
2,386,054

Life science
 
1,166,231

 
1,170,220

Premium wine
 
721,713

 
664,834

Other
 
351,490

 
396,644

Total commercial loans
 
10,242,165

 
9,933,420

Consumer loans:
 
 
 
 
Real estate secured loans
 
984,583

 
873,255

Other consumer loans
 
121,963

 
99,711

Total consumer loans
 
1,106,546

 
972,966

Total loans, net of unearned income
 
$
11,348,711

 
$
10,906,386
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, 2014 and December 31, 2013:
(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, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
$
9,102

 
$
610

 
$
56

 
$
9,768

 
$
4,226,640

 
$
56

Hardware
 
9,047

 
4

 
37

 
9,088

 
1,140,049

 
37

Venture capital/private equity
 
19,588

 
1

 
—

 
19,589

 
2,651,011

 
—

Life science
 
1,892

 
786

 
—

 
2,678

 
1,174,250

 
—

Premium wine
 
—

 
—

 
—

 
—

 
722,742

 
—

Other
 
211

 
27

 
—

 
238

 
353,444

 
—

Total commercial loans
 
39,840

 
1,428

 
93

 
41,361

 
10,268,136

 
93

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
167

 
—

 
—

 
167

 
983,810

 
—

Other consumer loans
 
21

 
1

 
—

 
22

 
121,458

 
—

Total consumer loans
 
188

 
1

 
—

 
189

 
1,105,268

 
—

Total gross loans excluding impaired loans
 
40,028

 
1,429

 
93

 
41,550

 
11,373,404

 
93

Impaired loans
 
36

 
3,722

 
1,394

 
5,152

 
17,194

 
—

Total gross loans
 
$
40,064

 
$
5,151

 
$
1,487

 
$
46,702

 
$
11,390,598

 
$
93

December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
$
9,804

 
$
1,291

 
$
99

 
$
11,194

 
$
4,102,546

 
$
99

Hardware
 
2,679

 
3,965

 
—

 
6,644

 
1,198,169

 
—

Venture capital/private equity
 
4

 
—

 
—

 
4

 
2,408,382

 
—

Life science
 
395

 
131

 
—

 
526

 
1,179,462

 
—

Premium wine
 
—

 
—

 
—

 
—

 
665,755

 
—

Other
 
1,580

 
142

 
—

 
1,722

 
397,416

 
—

Total commercial loans
 
14,462

 
5,529

 
99

 
20,090

 
9,951,730

 
99

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
240

 
—

 
—

 
240

 
872,586

 
—

Other consumer loans
 
8

 
—

 
—

 
8

 
98,965

 
—

Total consumer loans
 
248

 
—

 
—

 
248

 
971,551

 
—

Total gross loans excluding impaired loans
 
14,710

 
5,529

 
99

 
20,338

 
10,923,281

 
99

Impaired loans
 
4,657

 
7,043

 
4,339

 
16,039

 
35,610

 
—

Total gross loans
 
$
19,367

 
$
12,572

 
$
4,438

 
$
36,377

 
$
10,958,891

 
$
99
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, 2014 and December 31, 2013:
(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, 2014:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
13,619

 
$
797

 
$
14,416

 
$
15,747

Hardware
 
5,502

 
—

 
5,502

 
5,793

Venture capital/private equity
 
—

 
—

 
—

 
—

Life science
 
—

 
—

 
—

 
—

Premium wine
 
—

 
1,373

 
1,373

 
1,761

Other
 
499

 
—

 
499

 
551

Total commercial loans
 
19,620

 
2,170

 
21,790

 
23,852

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
220

 
220

 
1,424

Other consumer loans
 
336

 
—

 
336

 
628

Total consumer loans
 
336

 
220

 
556

 
2,052

Total
 
$
19,956

 
$
2,390

 
$
22,346

 
$
25,904

December 31, 2013:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
27,308

 
$
310

 
$
27,618

 
$
28,316

Hardware
 
19,329

 
338

 
19,667

 
35,317

Venture capital/private equity
 
40

 
—

 
40

 
40

Life science
 
—

 
1,278

 
1,278

 
4,727

Premium wine
 
—

 
1,442

 
1,442

 
1,778

Other
 
690

 
—

 
690

 
718

Total commercial loans
 
47,367

 
3,368

 
50,735

 
70,896

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
244

 
244

 
1,434

Other consumer loans
 
670

 
—

 
670

 
941

Total consumer loans
 
670

 
244

 
914

 
2,375

Total
 
$
48,037

 
$
3,612

 
$
51,649

 
$
73,271
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, 2014 and 2013:
 
 
Three months ended June 30,
 
Six months ended June 30,
(Dollars in thousands)
 
2014
 
2013
 
2014
 
2013
Average impaired loans:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
15,742

 
$
5,473

 
$
15,210

 
$
4,794

Hardware
 
6,860

 
24,519

 
11,440

 
24,076

Venture capital/private equity
 
—

 
30

 
—

 
15

Life science
 
552

 
596

 
787

 
455

Premium wine
 
1,398

 
1,536

 
1,415

 
2,936

Other
 
1,699

 
4,165

 
1,738

 
4,692

Total commercial loans
 
26,251

 
36,319

 
30,590

 
36,968

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
224

 
4,071

 
231

 
3,374

Other consumer loans
 
374

 
1,069

 
431

 
1,099

Total consumer loans
 
598

 
5,140

 
662

 
4,473

Total average impaired loans
 
$
26,849

 
$
41,459

 
$
31,252

 
$
41,441
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, 2014 and 2013, broken out by portfolio segment:
Three months ended June 30, 2014 (dollars in thousands)
 
Beginning Balance March 31, 2014
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance June 30, 2014
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
55,241

 
$
(4,015
)
 
$
119

 
$
1,894

 
$
53,239

Hardware
 
25,236

 
(412
)
 
1,182

 
(1,226
)
 
24,780

Venture capital/private equity
 
17,676

 
—

 
—

 
1,328

 
19,004

Life science
 
11,474

 
(249
)
 
190

 
(818
)
 
10,597

Premium wine
 
3,737

 
—

 
19

 
(210
)
 
3,546

Other
 
4,041

 
(1,706
)
 
10

 
873

 
3,218

Total commercial loans
 
117,405

 
(6,382
)
 
1,520

 
1,841

 
114,384

Consumer loans
 
6,137

 
—

 
101

 
106

 
6,344

Total allowance for loan losses
 
$
123,542

 
$
(6,382
)
 
$
1,621

 
$
1,947

 
$
120,728


Six months ended June 30, 2014 (dollars in thousands)
 
Beginning Balance December 31, 2013
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance June 30, 2014
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
64,084

 
$
(12,025
)
 
$
233

 
$
947

 
$
53,239

Hardware
 
36,553

 
(12,587
)
 
1,957

 
(1,143
)
 
24,780

Venture capital/private equity
 
16,385

 
—

 
—

 
2,619

 
19,004

Life science
 
11,926

 
(930
)
 
288

 
(687
)
 
10,597

Premium wine
 
3,914

 
—

 
238

 
(606
)
 
3,546

Other
 
3,680

 
(1,990
)
 
10

 
1,518

 
3,218

Total commercial loans
 
136,542

 
(27,532
)
 
2,726

 
2,648

 
114,384

Consumer loans
 
6,344

 
—

 
207

 
(207
)
 
6,344

Total allowance for loan losses
 
$
142,886

 
$
(27,532
)
 
$
2,933

 
$
2,441

 
$
120,728


Three months ended June 30, 2013 (dollars in thousands)
 
Beginning Balance March 31, 2013
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance June 30, 2013
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
45,010

 
$
(3,574
)
 
$
397

 
$
4,965

 
$
46,798

Hardware
 
27,869

 
(4,434
)
 
403

 
9,350

 
33,188

Venture capital/private equity
 
10,482

 
—

 
—

 
3,111

 
13,593

Life science
 
13,946

 
(491
)
 
886

 
(2,600
)
 
11,741

Premium wine
 
3,699

 
—

 
41

 
53

 
3,793

Other
 
3,975

 
(6,007
)
 
2,375

 
3,311

 
3,654

Total commercial loans
 
104,981

 
(14,506
)
 
4,102

 
18,190

 
112,767

Consumer loans
 
7,224

 
(869
)
 
67

 
382

 
6,804

Total allowance for loan losses
 
$
112,205

 
$
(15,375
)
 
$
4,169

 
$
18,572

 
$
119,571

Six months ended June 30, 2013 (dollars in thousands)
 
Beginning Balance December 31, 2012
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Ending Balance June 30, 2013
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software
 
$
42,648

 
$
(5,092
)
 
$
639

 
$
8,603

 
$
46,798

Hardware
 
29,761

 
(6,431
)
 
849

 
9,009

 
33,188

Venture capital/private equity
 
9,963

 
—

 
—

 
3,630

 
13,593

Life science
 
13,606

 
(2,561
)
 
1,089

 
(393
)
 
11,741

Premium wine
 
3,523

 
—

 
131

 
139

 
3,793

Other
 
3,912

 
(6,048
)
 
2,381

 
3,409

 
3,654

Total commercial loans
 
103,413

 
(20,132
)
 
5,089

 
24,397

 
112,767

Consumer loans
 
7,238

 
(869
)
 
447

 
(12
)
 
6,804

Total allowance for loan losses
 
$
110,651

 
$
(21,001
)
 
$
5,536

 
$
24,385

 
$
119,571
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, 2014 and December 31, 2013, broken out by portfolio segment:
 
 
June 30, 2014
 
December 31, 2013
 
 
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
 
$
2,979

$
14,416

 
$
50,260

$
4,197,774

 
$
11,261

$
27,617

 
$
52,823

$
4,075,019

Hardware
 
1,443

5,502

 
23,337

1,138,642

 
9,673

19,667

 
26,880

1,193,365

Venture capital/private equity
 
—

—

 
19,004

2,646,397

 
19

39

 
16,366

2,386,015

Life science
 
—

—

 
10,597

1,166,231

 
—

1,278

 
11,926

1,168,942

Premium wine
 
—

1,373

 
3,546

720,340

 
—

1,442

 
3,914

663,392

Other
 
118

499

 
3,100

350,991

 
156

690

 
3,524

395,954

Total commercial loans
 
4,540

21,790

 
109,844

10,220,375

 
21,109

50,733

 
115,433

9,882,687

Consumer loans
 
141

556

 
6,203

1,105,990

 
168

915

 
6,176

972,051

Total
 
$
4,681

$
22,346

 
$
116,047

$
11,326,365

 
$
21,277

$
51,648

 
$
121,609

$
10,854,738
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, 2014 and December 31, 2013:
(Dollars in thousands)
 
Pass
 
  Performing  
  (Criticized)  
 
Impaired  
 
Total
June 30, 2014:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
3,956,825

 
$
279,583

 
$
14,416

 
$
4,250,824

Hardware
 
972,454

 
176,683

 
5,502

 
1,154,639

Venture capital/private equity
 
2,668,213

 
2,387

 
—

 
2,670,600

Life science
 
1,066,046

 
110,882

 
—

 
1,176,928

Premium wine
 
713,329

 
9,413

 
1,373

 
724,115

Other
 
334,167

 
19,515

 
499

 
354,181

Total commercial loans
 
9,711,034

 
598,463

 
21,790

 
10,331,287

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
980,226

 
3,751

 
220

 
984,197

Other consumer loans
 
118,659

 
2,821

 
336

 
121,816

Total consumer loans
 
1,098,885

 
6,572

 
556

 
1,106,013

Total gross loans
 
$
10,809,919

 
$
605,035

 
$
22,346

 
$
11,437,300

December 31, 2013:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
3,875,043

 
$
238,697

 
$
27,618

 
$
4,141,358

Hardware
 
995,055

 
209,758

 
19,667

 
1,224,480

Venture capital/private equity
 
2,408,386

 
—

 
40

 
2,408,426

Life science
 
1,091,993

 
87,995

 
1,278

 
1,181,266

Premium wine
 
652,747

 
13,008

 
1,442

 
667,197

Other
 
383,602

 
15,536

 
690

 
399,828

Total commercial loans
 
9,406,826

 
564,994

 
50,735

 
10,022,555

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
868,789

 
4,037

 
244

 
873,070

Other consumer loans
 
95,586

 
3,387

 
670

 
99,643

Total consumer loans
 
964,375

 
7,424

 
914

 
972,713

Total gross loans
 
$
10,371,201

 
$
572,418

 
$
51,649

 
$
10,995,268
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, 2014 and December 31, 2013:
(Dollars in thousands)
 
June 30, 2014
 
December 31, 2013
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software
 
$
13,053

 
$
5,860

Hardware
 
4,108

 
13,329

Venture capital/ private equity
 
—

 
77

Premium wine
 
2,014

 
1,442

Other
 
804

 
1,055

Total commercial loans
 
19,979

 
21,763

Consumer loans:
 
 
 
 
Other consumer loans
 
336

 
670

Total consumer loans
 
336

 
670

Total
 
$
20,315

 
$
22,433
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, 2014 and 2013:
 
 
Three months ended June 30,
 
Six months ended June 30,
(Dollars in thousands)
 
2014
 
2013
 
2014
 
2013
Loans modified in TDRs during the period:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
455

 
$
778

 
$
12,816

 
$
778

Hardware
 
—

 
5,629

 
—

 
5,629

Venture capital/ private equity
 
—

 
89

 
—

 
676

Premium wine
 
—

 
—

 
641

 
—

Total commercial loans
 
455

 
6,496

 
13,457

 
7,083

Consumer loans:
 
 
 
 
 
 
 
 
Other consumer loans
 
—

 
—

 
—

 
70

Total consumer loans
 
—

 
—

 
—

 
70

Total loans modified in TDR’s during the period (1)
 
$
455

 
$
6,496

 
$
13,457

 
$
7,153

 
 
(1)
There were no partial charge-offs on loans classified as TDRs for the three and six months ended June 30, 2014. There were partial charge-offs of $1.2 million for both the three and six months ended June 30, 2013.
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 six months ended June 30, 2014 and 2013, broken out by portfolio segment and class of financing receivable.
 
 
Three months ended June 30,
 
Six months ended June 30,
(Dollars in thousands)
 
2014
 
2013
 
2014
 
2013
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software
 
$
236

 
$
—

 
$
236

 
$
—

Hardware
 
—

 
4,154

 
—

 
4,154

Other
 
—

 
—

 
—

 
2,750

Total commercial loans
 
236

 
4,154

 
236

 
6,904

Consumer loans
 
—

 
70

 
—

 
70

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
236

 
$
4,224

 
$
236

 
$
6,974