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Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments (Tables)
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $121 million and $125 million at March 31, 2017 and December 31, 2016, respectively, is presented in the following table:
(Dollars in thousands)
 
March 31, 2017
 
December 31, 2016
Commercial loans:
 
 
 
 
Software/internet
 
$
5,458,203

 
$
5,627,031

Hardware
 
1,097,835

 
1,180,398

Private equity/venture capital
 
8,426,831

 
7,691,148

Life science/healthcare
 
1,735,987

 
1,853,004

Premium wine
 
203,736

 
200,156

Other
 
473,918

 
393,551

Total commercial loans
 
17,396,510

 
16,945,288

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
672,831

 
678,166

Consumer loans (2)
 
2,012,977

 
1,926,968

Other
 
43,281

 
43,487

Total real estate secured loans
 
2,729,089

 
2,648,621

Construction loans
 
70,755

 
64,671

Consumer loans
 
231,097

 
241,364

Total loans, net of unearned income (3)
 
$
20,427,451

 
$
19,899,944

 
 
(1)
Included in our premium wine portfolio are gross construction loans of $103 million and $110 million at March 31, 2017 and December 31, 2016, respectively.
(2)
Consumer loans secured by real estate at March 31, 2017 and December 31, 2016 were comprised of the following:
(Dollars in thousands)
 
March 31, 2017
 
December 31, 2016
Loans for personal residence
 
$
1,735,925

 
$
1,655,349

Loans to eligible employees
 
207,420

 
199,291

Home equity lines of credit
 
69,632

 
72,328

Consumer loans secured by real estate
 
$
2,012,977

 
$
1,926,968


(3)
Included within our total loan portfolio are credit card loans of $242 million and $224 million at March 31, 2017 and December 31, 2016, 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 $121 million and $125 million at March 31, 2017 and December 31, 2016, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
(Dollars in thousands)
 
March 31, 2017
 
December 31, 2016
Commercial loans:
 
 
 
 
Software/internet
 
$
5,458,203

 
$
5,627,031

Hardware
 
1,097,835

 
1,180,398

Private equity/venture capital
 
8,426,831

 
7,691,148

Life science/healthcare
 
1,735,987

 
1,853,004

Premium wine
 
876,567

 
878,322

Other
 
587,954

 
501,709

Total commercial loans
 
18,183,377

 
17,731,612

Consumer loans:
 
 
 
 
Real estate secured loans
 
2,012,977

 
1,926,968

Other consumer loans
 
231,097

 
241,364

Total consumer loans
 
2,244,074

 
2,168,332

Total loans, net of unearned income
 
$
20,427,451

 
$
19,899,944
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, 2017 and December 31, 2016:
(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
March 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
26,927

 
$
3,331

 
$
38

 
$
30,296

 
$
5,350,664

 
$
38

Hardware
 
7,406

 
4

 
20

 
7,430

 
1,071,772

 
20

Private equity/venture capital
 
33,878

 
3,235

 
—

 
37,113

 
8,399,895

 
—

Life science/healthcare
 
708

 
20

 
2

 
730

 
1,743,014

 
2

Premium wine
 
3,037

 
1,201

 
—

 
4,238

 
869,106

 
—

Other
 
1,684

 
300

 
—

 
1,984

 
591,996

 
—

Total commercial loans
 
73,640

 
8,091

 
60

 
81,791

 
18,026,447

 
60

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
3,115

 
—

 
—

 
3,115

 
2,005,869

 
—

Other consumer loans
 
—

 
—

 
—

 
—

 
228,813

 
—

Total consumer loans
 
3,115

 
—

 
—

 
3,115

 
2,234,682

 
—

Total gross loans excluding impaired loans
 
76,755

 
8,091

 
60

 
84,906

 
20,261,129

 
60

Impaired loans
 
4,888

 
2,207

 
38,353

 
45,448

 
157,168

 
—

Total gross loans
 
$
81,643

 
$
10,298

 
$
38,413

 
$
130,354

 
$
20,418,297

 
$
60

December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet

 
$
37,087

 
$
1,162

 
$
6

 
$
38,255

 
$
5,507,575

 
$
6

Hardware
 
5,591

 
36

 
27

 
5,654

 
1,118,065

 
27

Private equity/venture capital
 
689

 
—

 
—

 
689

 
7,747,222

 
—

Life science/healthcare
 
283

 
551

 
—

 
834

 
1,827,490

 
—

Premium wine
 
1,003

 
4

 
—

 
1,007

 
876,185

 
—

Other
 
34

 
300

 
—

 
334

 
504,021

 
—

Total commercial loans
 
44,687

 
2,053

 
33

 
46,773

 
17,580,558

 
33

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
850

 
—

 
—

 
850

 
1,923,266

 
—

Other consumer loans
 
1,402

 
—

 
—

 
1,402

 
237,353

 
—

Total consumer loans
 
2,252

 
—

 
—

 
2,252

 
2,160,619

 
—

Total gross loans excluding impaired loans
 
46,939

 
2,053

 
33

 
49,025

 
19,741,177

 
33

Impaired loans
 
34,636

 
3,451

 
11,180

 
49,267

 
185,193

 
—

Total gross loans
 
$
81,575

 
$
5,504

 
$
11,213

 
$
98,292

 
$
19,926,370

 
$
33
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, 2017 and December 31, 2016:
(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, 2017:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software/internet

 
$
123,305

 
$
1,531

 
$
124,836

 
$
132,588

Hardware
 
27,531

 
2,002

 
29,533

 
34,307

Private equity/venture capital
 
346

 
—

 
346

 
346

Life science/healthcare
 
38,552

 
741

 
39,293

 
42,478

Premium wine
 
3,321

 
—

 
3,321

 
3,321

Other
 
1,659

 
—

 
1,659

 
1,953

Total commercial loans
 
194,714

 
4,274

 
198,988

 
214,993

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,480

 
—

 
1,480

 
2,768

Other consumer loans
 
2,148

 
—

 
2,148

 
2,148

Total consumer loans
 
3,628

 
—

 
3,628

 
4,916

Total
 
$
198,342

 
$
4,274

 
$
202,616

 
$
219,909

December 31, 2016:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software/internet

 
$
121,658

 
$
1,090

 
$
122,748

 
$
129,648

Hardware
 
65,395

 
—

 
65,395

 
70,683

Private equity/venture capital
 
—

 
—

 
—

 
—

Life science/healthcare
 
38,361

 
—

 
38,361

 
41,130

Premium wine
 
3,187

 
—

 
3,187

 
3,187

Other
 
867

 
—

 
867

 
867

Total commercial loans
 
229,468

 
1,090

 
230,558

 
245,515

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,504

 
—

 
1,504

 
2,779

Other consumer loans
 
2,398

 
—

 
2,398

 
2,398

Total consumer loans
 
3,902

 
—

 
3,902

 
5,177

Total
 
$
233,370

 
$
1,090

 
$
234,460

 
$
250,692
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 months ended March 31, 2017 and 2016:
Three months ended March 31,
 
Average impaired loans
 
Interest income on impaired loans
(Dollars in thousands)
 
2017
 
2016
 
2017
 
2016
Commercial loans:
 
 
 
 
 
 
 
 
Software/internet

 
$
109,916

 
$
89,367

 
$
422

 
$
421

Hardware
 
34,110

 
24,426

 
572

 
397

Private equity/venture capital
 
358

 
—

 
2

 
—

Life science/healthcare
 
38,942

 
39,690

 
150

 
133

Premium wine
 
3,213

 
2,171

 
38

 
17

Other
 
1,061

 
3,853

 
4

 
7

Total commercial loans
 
187,600

 
159,507

 
1,188

 
975

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,488

 
135

 
—

 
—

Other consumer loans
 
2,148

 
34

 
8

 
—

Total consumer loans
 
3,636

 
169

 
8

 
—

Total average impaired loans
 
$
191,236

 
$
159,676

 
$
1,196

 
$
975
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, 2017 and 2016, broken out by portfolio segment:
Three months ended March 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 March 31, 2017
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet

 
$
97,388

 
$
(7,980
)
 
$
1,171

 
$
18,719

 
$
204

 
$
109,502

Hardware
 
31,166

 
(4,024
)
 
267

 
(4,080
)
 
(45
)
 
23,284

Private equity/venture capital
 
50,299

 
—

 
—

 
6,706

 
73

 
57,078

Life science/healthcare
 
25,446

 
(1,732
)
 
36

 
7,708

 
84

 
31,542

Premium wine
 
4,115

 
—

 
—

 
226

 
2

 
4,343

Other
 
4,768

 
(294
)
 
297

 
(390
)
 
(4
)
 
4,377

Total commercial loans
 
213,182

 
(14,030
)
 
1,771

 
28,889

 
314

 
230,126

Total consumer loans
 
12,184

 
—

 
21

 
790

 
9

 
13,004

Total allowance for loan losses
 
$
225,366

 
$
(14,030
)
 
$
1,792

 
$
29,679

 
$
323

 
$
243,130

Three months ended March 31, 2016 (Dollars in thousands)
 
Beginning Balance December 31, 2015
 
Charge-offs
 
Recoveries
 
Provision for
(Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments (1)
 
Ending Balance March 31, 2016
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
103,045

 
$
(22,161
)
 
$
3,960

 
$
21,632

 
$
422

 
$
106,898

Hardware
 
23,085

 
(1,486
)
 
239

 
1,959

 
39

 
23,836

Private equity/venture capital
 
35,282

 
—

 
—

 
8,243

 
161

 
43,686

Life science/healthcare
 
36,576

 
(2,395
)
 
491

 
(4,303
)
 
(84
)
 
30,285

Premium wine
 
5,205

 
—

 
—

 
39

 
—

 
5,244

Other
 
4,252

 
(30
)
 
74

 
5,145

 
106

 
9,547

Total commercial loans
 
207,445

 
(26,072
)
 
4,764

 
32,715

 
644

 
219,496

Total consumer loans
 
10,168

 
(102
)
 
49

 
626

 
12

 
10,753

Total allowance for loan losses
 
$
217,613

 
$
(26,174
)
 
$
4,813

 
$
33,341

 
$
656

 
$
230,249


 
(1)
Reflects foreign currency translation adjustments within the allowance for loan losses. Prior period amounts were previously reported with loan recoveries and have been revised to conform to current period presentation.
The following table summarizes the activity relating to our allowance for unfunded credit commitments for the three months ended March 31, 2017 and 2016:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2017
 
2016
Beginning balance
 
$
45,265

 
$
34,415

Provision for unfunded credit commitments
 
1,055

 
134

Foreign currency translation adjustments
 
15

 
(8
)
Ending balance (1)
 
$
46,335

 
$
34,541

 
(1)
See Note 12—"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, 2017 and December 31, 2016, broken out by portfolio segment:
 
 
March 31, 2017
 
December 31, 2016
 
 
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
 
$
38,563

 
$
124,836

 
$
70,939

 
$
5,333,367

 
$
28,245

 
$
122,748

 
$
69,143

 
$
5,504,283

Hardware
 
2,674

 
29,533

 
20,610

 
1,068,302

 
9,995

 
65,395

 
21,171

 
1,115,003

Private equity/venture capital
 
35

 
346

 
57,043

 
8,426,485

 
—

 
—

 
50,299

 
7,691,148

Life science/healthcare
 
13,580

 
39,293

 
17,962

 
1,696,694

 
8,709

 
38,361

 
16,737

 
1,814,643

Premium wine
 
513

 
3,321

 
3,830

 
873,246

 
520

 
3,187

 
3,595

 
875,135

Other
 
342

 
1,659

 
4,035

 
586,295

 
233

 
867

 
4,535

 
500,842

Total commercial loans
 
55,707

 
198,988

 
174,419

 
17,984,389

 
47,702

 
230,558

 
165,480

 
17,501,054

Total consumer loans
 
1,074

 
3,628

 
11,930

 
2,240,446

 
1,123

 
3,902

 
11,061

 
2,164,430

Total
 
$
56,781

 
$
202,616

 
$
186,349

 
$
20,224,835

 
$
48,825

 
$
234,460

 
$
176,541

 
$
19,665,484
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, 2017 and December 31, 2016:
(Dollars in thousands)
 
Pass
 
  Performing  
  (Criticized)  
 
Performing Impaired (Criticized)
 
Nonperforming Impaired (Nonaccrual)
 
Total
March 31, 2017:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
4,858,104

 
$
522,856

 
$
25,165

 
$
99,671

 
$
5,505,796

Hardware
 
938,269

 
140,933

 
27,464

 
2,069

 
1,108,735

Private equity/venture capital
 
8,436,841

 
167

 
346

 
—

 
8,437,354

Life science/healthcare
 
1,588,709

 
155,035

 
7,153

 
32,140

 
1,783,037

Premium wine
 
854,409

 
18,935

 
2,831

 
490

 
876,665

Other
 
573,527

 
20,453

 
357

 
1,302

 
595,639

Total commercial loans
 
17,249,859

 
858,379

 
63,316

 
135,672

 
18,307,226

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,997,248

 
11,736

 
—

 
1,480

 
2,010,464

Other consumer loans
 
228,162

 
651

 
536

 
1,612

 
230,961

Total consumer loans
 
2,225,410

 
12,387

 
536

 
3,092

 
2,241,425

Total gross loans
 
$
19,475,269

 
$
870,766

 
$
63,852

 
$
138,764

 
$
20,548,651

December 31, 2016:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
4,924,923

 
$
620,907

 
$
46,143

 
$
76,605

 
$
5,668,578

Hardware
 
985,889

 
137,830

 
58,814

 
6,581

 
1,189,114

Private equity/venture capital
 
7,747,317

 
594

 
—

 
—

 
7,747,911

Life science/healthcare
 
1,707,499

 
120,825

 
6,578

 
31,783

 
1,866,685

Premium wine
 
865,354

 
11,838

 
2,696

 
491

 
880,379

Other
 
480,845

 
23,510

 
464

 
403

 
505,222

Total commercial loans
 
16,711,827

 
915,504

 
114,695

 
115,863

 
17,857,889

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,914,512

 
9,604

 
—

 
1,504

 
1,925,620

Other consumer loans
 
238,256

 
499

 
786

 
1,612

 
241,153

Total consumer loans
 
2,152,768

 
10,103

 
786

 
3,116

 
2,166,773

Total gross loans
 
$
18,864,595

 
$
925,607

 
$
115,481

 
$
118,979

 
$
20,024,662
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, 2017 and December 31, 2016:
(Dollars in thousands)
 
March 31, 2017
 
December 31, 2016
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software/internet
 
$
59,419

 
$
52,646

Hardware
 
10,687

 
14,870

Life science/healthcare
 
21,561

 
24,176

Premium wine
 
3,177

 
3,194

Other
 
33

 
387

Total commercial loans
 
94,877

 
95,273

Consumer loans:
 
 
 
 
Other consumer loans
 
536

 
786

Total consumer loans
 
536

 
786

Total
 
$
95,413

 
$
96,059
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, 2017 and 2016:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2017

2016
Loans modified in TDRs during the period:
 
 
 
 
Commercial loans:
 
 
 
 
Software/internet
 
$
6,309

 
$
10,854

Other
 
—

 
505

Total commercial loans
 
6,309

 
11,359

Total consumer loans
 
—

 
—

Total loans modified in TDRs during the period (1)
 
$
6,309

 
$
11,359

 
 
(1)
There were $6.2 million of partial charge-offs during the three months ended March 31, 2017 and $3.8 million of partial charge-offs during the three months ended March 31, 2016.
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, 2017. There were no loans modified in TDRs within the previous 12 months that subsequently defaulted during the three months ended March 31, 2016.
 
 
Three months ended March 31,
(Dollars in thousands)
 
2017
TDRs modified within the previous 12 months that defaulted during the period:
 
 
Commercial loans:
 
 
Hardware
 
$
3,105

Total commercial loans
 
3,105

Consumer loans:
 
 
Other consumer loans
 
536

Total consumer loans
 
536

Total TDRs modified within the previous 12 months that defaulted in the period
 
$
3,641