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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $104 million and $89 million at December 31, 2014 and 2013, respectively, is presented in the following table:
 
 
December 31,
(Dollars in thousands)
 
2014
 
2013
Commercial loans:
 
 
 
 
Software and internet
 
$
4,954,676

 
$
4,102,636

Hardware
 
1,131,006

 
1,213,032

Private equity/venture capital
 
4,582,906

 
2,386,054

Life science & healthcare
 
1,289,904

 
1,170,220

Premium wine
 
187,568

 
149,841

Other
 
234,551

 
288,904

Total commercial loans
 
12,380,611

 
9,310,687

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
606,753

 
514,993

Consumer loans (2)
 
1,118,115

 
873,255

Other
 
39,651

 
30,743

Total real estate secured loans
 
1,764,519

 
1,418,991

Construction loans
 
78,626

 
76,997

Consumer loans
 
160,520

 
99,711

Total loans, net of unearned income (3)
 
$
14,384,276

 
$
10,906,386

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $112 million at both December 31, 2014 and 2013.
(2)
Consumer loans secured by real estate at December 31, 2014 and 2013 were comprised of the following:
 
 
December 31,
(Dollars in thousands)
 
2014
 
2013
Loans for personal residence
 
$
918,629

 
$
685,327

Loans to eligible employees
 
133,568

 
121,548

Home equity lines of credit
 
65,918

 
66,380

Consumer loans secured by real estate
 
$
1,118,115

 
$
873,255


(3)
Included within our total loan portfolio are credit card loans of $131 million and $85 million at December 31, 2014 and 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 $104 million and $89 million at December 31, 2014 and December 31, 2013, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
 
 
December 31,
(Dollars in thousands)
 
2014
 
2013
Commercial loans:
 
 
 
 
Software and internet
 
$
4,954,676

 
$
4,102,636

Hardware
 
1,131,006

 
1,213,032

Private equity/venture capital
 
4,582,906

 
2,386,054

Life science & healthcare
 
1,289,904

 
1,170,220

Premium wine
 
794,321

 
664,834

Other
 
352,828

 
396,644

Total commercial loans
 
13,105,641

 
9,933,420

Consumer loans:
 
 
 
 
Real estate secured loans
 
1,118,115

 
873,255

Other consumer loans
 
160,520

 
99,711

Total consumer loans
 
1,278,635

 
972,966

Total loans, net of unearned income
 
$
14,384,276

 
$
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 December 31, 2014 and 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
December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
10,989

 
$
1,627

 
$
52

 
$
12,668

 
$
4,950,291

 
$
52

Hardware
 
13,424

 
126

 
—

 
13,550

 
1,124,423

 
—

Private equity/venture capital
 
40,773

 
—

 
—

 
40,773

 
4,580,526

 
—

Life science & healthcare
 
738

 
786

 
—

 
1,524

 
1,298,728

 
—

Premium wine
 
—

 
—

 
—

 
—

 
795,345

 
—

Other
 
178

 
3

 
—

 
181

 
354,939

 
—

Total commercial loans
 
66,102

 
2,542

 
52

 
68,696

 
13,104,252

 
52

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,592

 
341

 
1,250

 
3,183

 
1,114,286

 
1,250

Other consumer loans
 
—

 
—

 
—

 
—

 
160,212

 
—

Total consumer loans
 
1,592

 
341

 
1,250

 
3,183

 
1,274,498

 
1,250

Total gross loans excluding impaired loans
 
67,694

 
2,883

 
1,302

 
71,879

 
14,378,750

 
1,302

Impaired loans
 
598

 
1,293

 
22,320

 
24,211

 
13,926

 
—

Total gross loans
 
$
68,292

 
$
4,176

 
$
23,622

 
$
96,090

 
$
14,392,676

 
$
1,302

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

 
$
1,291

 
$
99

 
$
11,194

 
$
4,102,546

 
$
99

Hardware
 
2,679

 
3,965

 
—

 
6,644

 
1,198,169

 
—

Private equity/venture capital
 
4

 
—

 
—

 
4

 
2,408,382

 
—

Life science & healthcare
 
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 December 31, 2014 and 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   
December 31, 2014:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
33,287

 
$
—

 
$
33,287

 
$
34,218

Hardware
 
1,403

 
1,118

 
2,521

 
2,535

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science & healthcare
 
475

 
—

 
475

 
2,453

Premium wine
 
—

 
1,304

 
1,304

 
1,743

Other
 
233

 
—

 
233

 
233

Total commercial loans
 
35,398

 
2,422

 
37,820

 
41,182

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
—

 
192

 
192

 
1,412

Other consumer loans
 
125

 
—

 
125

 
305

Total consumer loans
 
125

 
192

 
317

 
1,717

Total
 
$
35,523

 
$
2,614

 
$
38,137

 
$
42,899

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

 
$
310

 
$
27,618

 
$
28,316

Hardware
 
19,329

 
338

 
19,667

 
35,317

Private equity/venture capital
 
40

 
—

 
40

 
40

Life science & healthcare
 
—

 
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 during 2014, 2013 and 2012:
 
 
Year ended December 31,
(Dollars in thousands)
 
2014
 
2013
 
2012
Average impaired loans:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software and internet
 
$
14,357

 
$
6,254

 
$
2,223

Hardware
 
6,634

 
24,508

 
19,242

Private equity/venture capital
 
—

 
37

 
—

Life science & healthcare
 
516

 
334

 
345

Premium wine
 
1,381

 
2,210

 
3,513

Other
 
1,088

 
3,601

 
3,558

Total commercial loans
 
23,976

 
36,944

 
28,881

Consumer loans:
 
 
 
 
 
 
Real estate secured loans
 
218

 
2,957

 
5,037

Other consumer loans
 
322

 
945

 
1,896

Total consumer loans
 
540

 
3,902

 
6,933

Total average impaired loans
 
$
24,516

 
$
40,846

 
$
35,814
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 2014, 2013, and 2012 broken out by portfolio segment:
Year ended December 31, 2014
 
Beginning Balance December 31, 2013
 
Charge-offs
 
Recoveries
 
Provision for Loan Losses
 
Ending Balance December 31, 2014
(Dollars in thousands)
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
64,084

 
$
(21,031
)
 
$
1,425

 
$
36,503

 
$
80,981

Hardware
 
36,553

 
(15,265
)
 
2,238

 
2,334

 
25,860

Private equity/venture capital
 
16,385

 
—

 
—

 
11,612

 
27,997

Life science & healthcare
 
11,926

 
(2,951
)
 
374

 
5,859

 
15,208

Premium wine
 
3,914

 
(35
)
 
240

 
354

 
4,473

Other
 
3,680

 
(3,886
)
 
1,499

 
1,960

 
3,253

Total commercial loans
 
136,542

 
(43,168
)
 
5,776

 
58,622

 
157,772

Consumer loans
 
6,344

 
—

 
379

 
864

 
7,587

Total allowance for loan losses
 
$
142,886

 
$
(43,168
)
 
$
6,155

 
$
59,486

 
$
165,359

Year ended December 31, 2013
 
Beginning Balance December 31, 2012
 
Charge-offs
 
Recoveries
 
Provision for (Reduction of) Loan Losses
 
Ending Balance December 31, 2013
(Dollars in thousands)
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
42,648

 
$
(8,861
)
 
$
1,934

 
$
28,363

 
$
64,084

Hardware
 
29,761

 
(18,819
)
 
2,677

 
22,934

 
36,553

Private equity/venture capital
 
9,963

 
—

 
—

 
6,422

 
16,385

Life science & healthcare
 
13,606

 
(6,010
)
 
1,860

 
2,470

 
11,926

Premium wine
 
3,523

 
—

 
170

 
221

 
3,914

Other
 
3,912

 
(8,107
)
 
2,995

 
4,880

 
3,680

Total commercial loans
 
103,413

 
(41,797
)
 
9,636

 
65,290

 
136,542

Consumer loans
 
7,238

 
(869
)
 
1,572

 
(1,597
)
 
6,344

Total allowance for loan losses
 
$
110,651

 
$
(42,666
)
 
$
11,208

 
$
63,693

 
$
142,886


    
Year ended December 31, 2012
 
Beginning Balance December 31, 2011
 
Charge-offs
 
Recoveries
 
Provision for (Reduction of) Loan Losses
 
Ending Balance December 31, 2012
(Dollars in thousands)
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software and internet
 
$
38,263

 
$
(4,316
)
 
$
4,874

 
$
3,827

 
$
42,648

Hardware
 
16,810

 
(20,247
)
 
1,107

 
32,091

 
29,761

Private equity/venture capital
 
7,319

 
—

 
—

 
2,644

 
9,963

Life science & healthcare
 
10,243

 
(5,080
)
 
334

 
8,109

 
13,606

Premium wine
 
3,914

 
(584
)
 
650

 
(457
)
 
3,523

Other
 
5,817

 
(2,485
)
 
1,377

 
(797
)
 
3,912

Total commercial loans
 
82,366

 
(32,712
)
 
8,342

 
45,417

 
103,413

Consumer loans
 
7,581

 
(607
)
 
1,351

 
(1,087
)
 
7,238

Total allowance for loan losses
 
$
89,947

 
$
(33,319
)
 
$
9,693

 
$
44,330

 
$
110,651
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, 2014 and 2013, broken out by portfolio segment:
 
 
December 31, 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 and internet
 
$
13,695

 
$
33,287

 
$
67,286

 
$
4,921,389

 
$
11,261

 
$
27,617

 
$
52,823

 
$
4,075,019

Hardware
 
1,133

 
2,521

 
24,727

 
1,128,485

 
9,673

 
19,667

 
26,880

 
1,193,365

Private equity/venture capital
 
—

 
—

 
27,997

 
4,582,906

 
19

 
39

 
16,366

 
2,386,015

Life science & healthcare
 
121

 
475

 
15,087

 
1,289,429

 
—

 
1,278

 
11,926

 
1,168,942

Premium wine
 
—

 
1,304

 
4,473

 
793,017

 
—

 
1,442

 
3,914

 
663,392

Other
 
71

 
233

 
3,182

 
352,595

 
156

 
690

 
3,524

 
395,954

Total commercial loans
 
15,020

 
37,820

 
142,752

 
13,067,821

 
21,109

 
50,733

 
115,433

 
9,882,687

Consumer loans
 
31

 
317

 
7,556

 
1,278,318

 
168

 
915

 
6,176

 
972,051

Total
 
$
15,051

 
$
38,137

 
$
150,308

 
$
14,346,139

 
$
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 December 31, 2014 and 2013:
(Dollars in thousands)
 
Pass
 
  Performing 
(Criticized)  
 
Impaired  
 
Total
December 31, 2014:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software and internet
 
$
4,611,253

 
$
351,706

 
$
33,287

 
$
4,996,246

Hardware
 
945,998

 
191,975

 
2,521

 
1,140,494

Private equity/venture capital
 
4,615,231

 
6,068

 
—

 
4,621,299

Life science & healthcare
 
1,165,266

 
134,986

 
475

 
1,300,727

Premium wine
 
774,962

 
20,383

 
1,304

 
796,649

Other
 
346,153

 
8,967

 
233

 
355,353

Total commercial loans
 
12,458,863

 
714,085

 
37,820


13,210,768

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,112,396

 
5,073

 
192

 
1,117,661

Other consumer loans
 
158,162

 
2,050

 
125

 
160,337

Total consumer loans
 
1,270,558

 
7,123

 
317

 
1,277,998

Total gross loans
 
$
13,729,421

 
$
721,208

 
$
38,137

 
$
14,488,766

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

 
$
238,697

 
$
27,618

 
$
4,141,358

Hardware
 
995,055

 
209,758

 
19,667

 
1,224,480

Private equity/venture capital
 
2,408,386

 
—

 
40

 
2,408,426

Life science & healthcare
 
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 December 31, 2014 and 2013:
 
 
December 31,
(Dollars in thousands)
 
2014
 
2013
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software and internet
 
$
3,784

 
$
5,860

Hardware
 
1,118

 
13,329

Private equity/venture capital
 
—

 
77

Premium wine
 
1,891

 
1,442

Other
 
233

 
1,055

Total commercial loans
 
7,026

 
21,763

Consumer loans:
 
 
 
 
Other consumer loans
 
125

 
670

Total consumer loans
 
125

 
670

Total
 
$
7,151

 
$
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 2014, 2013, and 2012:
 
 
Year ended December 31,
(Dollars in thousands)
 
2014
 
2013
 
2012
Loans modified in TDRs during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software and internet
 
$
1,033

 
$
4,932

 
$
1,939

Hardware
 
1,118

 
8,143

 
20,514

Private equity/venture capital
 
—

 
77

 
—

Premium wine
 
587

 
—

 
1,024

Other
 
—

 
690

 
4,878

Total commercial loans
 
2,738

 
13,842

 
28,355

Consumer loans:
 
 
 
 
 
 
Real estate secured loans
 
—

 
—

 
368

Other consumer loans
 
—

 
6

 
—

Total consumer loans
 
—

 
6

 
368

Total loans modified in TDRs during the period (1)
 
$
2,738

 
$
13,848

 
$
28,723

 
 
(1)
During 2014 we had no partial charge-offs. In 2013 and 2012 we had partial charge-offs of $11.1 million and $14.3 million respectively, on loans classified as TDRs.
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)
 
2013
 
2012
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
Commercial loans:
 
 
 
 
Hardware
 
$
1,627

 
$
1,868

Private equity/venture capital
 
38

 
—

Other
 
365

 
—

Total commercial loans
 
2,030

 
1,868

Consumer loans:
 
 
 
 
Real estate secured loans
 
—

 
120

Other consumer loans
 
6

 
—

Total consumer loans
 
6

 
120

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
2,036

 
$
1,988