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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans, net of unearned income of $148 million and $125 million at December 31, 2017 and 2016, respectively, is presented in the following table:
 
 
December 31,
(Dollars in thousands)
 
2017
 
2016
Commercial loans:
 
 
 
 
Software/internet
 
$
6,172,531

 
$
5,627,031

Hardware
 
1,193,599

 
1,180,398

Private equity/venture capital
 
9,952,377

 
7,691,148

Life science/healthcare
 
1,808,827

 
1,853,004

Premium wine
 
204,105

 
200,156

Other
 
365,724

 
393,551

Total commercial loans
 
19,697,163

 
16,945,288

Real estate secured loans:
 
 
 
 
Premium wine (1)
 
669,053

 
678,166

Consumer loans (2)
 
2,300,506

 
1,926,968

Other
 
42,068

 
43,487

Total real estate secured loans
 
3,011,627

 
2,648,621

Construction loans
 
68,546

 
64,671

Consumer loans
 
328,980

 
241,364

Total loans, net of unearned income (3)
 
$
23,106,316

 
$
19,899,944

 
(1)
Included in our premium wine portfolio are gross construction loans of $100 million and $110 million at December 31, 2017 and 2016, respectively.
(2)
Consumer loans secured by real estate at December 31, 2017 and 2016 were comprised of the following:
 
 
December 31,
(Dollars in thousands)
 
2017
 
2016
Loans for personal residence
 
$
1,995,840

 
$
1,655,349

Loans to eligible employees
 
243,118

 
199,291

Home equity lines of credit
 
61,548

 
72,328

Consumer loans secured by real estate
 
$
2,300,506

 
$
1,926,968


(3)
Included within our total loan portfolio are credit card loans of $270 million and $224 million at December 31, 2017 and 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 $148 million and $125 million at December 31, 2017 and 2016, respectively, broken out by portfolio segment and class of financing receivable, is as follows:
 
 
December 31,
(Dollars in thousands)
 
2017
 
2016
Commercial loans:
 
 
 
 
Software/internet
 
$
6,172,531

 
$
5,627,031

Hardware
 
1,193,599

 
1,180,398

Private equity/venture capital
 
9,952,377

 
7,691,148

Life science/healthcare
 
1,808,827

 
1,853,004

Premium wine
 
873,158

 
878,322

Other
 
476,338

 
501,709

Total commercial loans
 
20,476,830

 
17,731,612

Consumer loans:
 
 
 
 
Real estate secured loans
 
2,300,506

 
1,926,968

Other consumer loans
 
328,980

 
241,364

Total consumer loans
 
2,629,486

 
2,168,332

Total loans, net of unearned income
 
$
23,106,316

 
$
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 December 31, 2017 and 2016:
(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, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
14,257

 
$
6,526

 
$
141

 
$
20,924

 
$
6,101,147

 
$
141

Hardware
 
1,145

 
77

 
50

 
1,272

 
1,163,278

 
50

Private equity/venture capital
 
86,566

 
38,580

 
—

 
125,146

 
9,835,317

 
—

Life science/healthcare
 
4,390

 
191

 
—

 
4,581

 
1,841,692

 
—

Premium wine
 
418

 
—

 
—

 
418

 
871,074

 
—

Other
 
445

 
—

 
—

 
445

 
490,292

 
—

Total commercial loans
 
107,221

 
45,374

 
191

 
152,786

 
20,302,800

 
191

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
2,164

 
532

 
—

 
2,696

 
2,292,980

 
—

Other consumer loans
 
796

 
—

 
—

 
796

 
327,234

 
—

Total consumer loans
 
2,960

 
532

 
—

 
3,492

 
2,620,214

 
—

Total gross loans excluding impaired loans
 
110,181

 
45,906

 
191

 
156,278

 
22,923,014

 
191

Impaired loans
 
1,344

 
11,902

 
30,403

 
43,649

 
131,212

 
—

Total gross loans
 
$
111,525

 
$
57,808

 
$
30,594

 
$
199,927

 
$
23,054,226

 
$
191

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 for the years ended December 31, 2017 and 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   
December 31, 2017:
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
Software/internet
 
$
49,645

 
$
61,009

 
$
110,654

 
$
129,006

Hardware
 
15,637

 
20,713

 
36,350

 
41,721

Private equity/venture capital
 
658

 
—

 
658

 
984

Life science/healthcare
 
20,521

 
1,166

 
21,687

 
26,360

Premium wine
 
—

 
2,877

 
2,877

 
2,911

Other
 
32

 
—

 
32

 
165

Total commercial loans
 
86,493

 
85,765

 
172,258

 
201,147

Consumer loans:
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,331

 
850

 
2,181

 
3,712

Other consumer loans
 
422

 
—

 
422

 
436

Total consumer loans
 
1,753

 
850

 
2,603

 
4,148

Total
 
$
88,246

 
$
86,615

 
$
174,861

 
$
205,295

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 and interest income on impaired loans, broken out by portfolio segment and class of financing receivable during 2017, 2016 and 2015:
Year ended December 31,
(Dollars in thousands)
 
Average impaired loans
 
Interest income on impaired loans
 
2017

2016

2015
 
2017
 
2016
 
2015
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
119,557

 
$
89,462

 
$
63,825

 
$
2,263

 
$
1,054

 
$
344

Hardware
 
35,022

 
39,108

 
8,854

 
1,061

 
2,624

 
574

Private equity/venture capital
 
556

 
—

 
—

 
—

 
—

 
—

Life science/healthcare
 
30,842

 
40,620

 
18,083

 
90

 
155

 
132

Premium wine
 
3,249

 
2,056

 
1,455

 
152

 
28

 
12

Other
 
576

 
3,442

 
2,758

 
—

 
6

 
8

Total commercial loans
 
189,802

 
174,688

 
94,975

 
3,566

 
3,867

 
1,070

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
1,514

 
588

 
172

 
—

 
—

 
—

Other consumer loans
 
1,804

 
1,136

 
41

 
—

 
17

 
—

Total consumer loans
 
3,318

 
1,724

 
213

 
—

 
17

 
—

Total average impaired loans
 
$
193,120

 
$
176,412

 
$
95,188

 
$
3,566

 
$
3,884

 
$
1,070
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 2017, 2016 and 2015 broken out by portfolio segment:
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

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

 
$
(68,784
)
 
$
7,278

 
$
58,350

 
$
(2,501
)
 
$
97,388

Hardware
 
23,085

 
(13,233
)
 
1,667

 
20,851

 
(1,204
)
 
31,166

Private equity/venture capital
 
35,282

 
—

 
—

 
15,114

 
(97
)
 
50,299

Life science/healthcare
 
36,576

 
(9,693
)
 
1,129

 
(2,543
)
 
(23
)
 
25,446

Premium wine
 
5,205

 
—

 
—

 
(1,260
)
 
170

 
4,115

Other
 
4,252

 
(5,045
)
 
1,880

 
3,373

 
308

 
4,768

Total commercial loans
 
207,445

 
(96,755
)
 
11,954

 
93,885

 
(3,347
)
 
213,182

Consumer loans
 
10,168

 
(102
)
 
258

 
1,812

 
48

 
12,184

Total allowance for loan losses
 
$
217,613

 
$
(96,857
)
 
$
12,212

 
$
95,697

 
$
(3,299
)
 
$
225,366


    
Year ended December 31, 2015
(Dollars in thousands)
 
Beginning Balance December 31, 2014
 
Charge-offs
 
Recoveries
 
Provision for (Reduction of) Loan Losses
 
Foreign Currency Translation Adjustments
 
Ending Balance December 31, 2015
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
80,981

 
$
(33,246
)
 
$
1,621

 
$
53,696

 
$
(7
)
 
$
103,045

Hardware
 
25,860

 
(5,145
)
 
3,332

 
(1,035
)
 
73

 
23,085

Private equity/venture capital
 
27,997

 
—

 
—

 
7,391

 
(106
)
 
35,282

Life science/healthcare
 
15,208

 
(7,291
)
 
277

 
28,400

 
(18
)
 
36,576

Premium wine
 
4,473

 
—

 
7

 
725

 
—

 
5,205

Other
 
3,253

 
(4,990
)
 
809

 
5,736

 
(556
)
 
4,252

Total commercial loans
 
157,772

 
(50,672
)
 
6,046

 
94,913

 
(614
)
 
207,445

Consumer loans
 
7,587

 
(296
)
 
163

 
2,716

 
(2
)
 
10,168

Total allowance for loan losses
 
$
165,359

 
$
(50,968
)
 
$
6,209

 
$
97,629

 
$
(616
)
 
$
217,613
Allowance for Unfunded Commitments [Table Text Block]
The following table summarizes the activity relating to our allowance for unfunded credit commitments for 2017, 2016 and 2015:
 
 
Year ended December 31,
(Dollars in thousands)
 
2017
 
2016
 
2015
Allowance for unfunded credit commitments, beginning balance
 
$
45,265

 
$
34,415

 
$
36,419

Provision for (reduction of) unfunded credit commitments
 
6,365

 
10,982

 
(1,946
)
Foreign currency translation adjustments
 
140

 
(132
)
 
(58
)
Allowance for unfunded credit commitments, ending balance (1)
 
$
51,770

 
$
45,265

 
$
34,415

 
(1)
See Note 19—“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.
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, 2017 and 2016, broken out by portfolio segment:
 
 
December 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
 
$
23,088

 
$
110,654

 
$
73,016

 
$
6,061,877

 
$
28,245

 
$
122,748

 
$
69,143

 
$
5,504,283

Hardware
 
8,450

 
36,350

 
19,164

 
1,157,249

 
9,995

 
65,395

 
21,171

 
1,115,003

Private equity/venture capital
 
330

 
658

 
82,138

 
9,951,719

 
—

 
—

 
50,299

 
7,691,148

Life science/healthcare
 
9,315

 
21,687

 
15,609

 
1,787,140

 
8,709

 
38,361

 
16,737

 
1,814,643

Premium wine
 
—

 
2,877

 
3,532

 
870,281

 
520

 
3,187

 
3,595

 
875,135

Other
 
32

 
32

 
3,909

 
476,306

 
233

 
867

 
4,535

 
500,842

Total commercial loans
 
41,215

 
172,258

 
197,368

 
20,304,572

 
47,702

 
230,558

 
165,480

 
17,501,054

Total consumer loans
 
578

 
2,603

 
15,863

 
2,626,883

 
1,123

 
3,902

 
11,061

 
2,164,430

Total
 
$
41,793

 
$
174,861

 
$
213,231

 
$
22,931,455

 
$
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 December 31, 2017 and 2016:
(Dollars in thousands)
 
Pass
 
  Performing 
(Criticized)  
 
Performing Impaired (Criticized)
 
Nonperforming Impaired (Nonaccrual)
 
Total
December 31, 2017:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
Software/internet
 
$
5,655,739

 
$
466,332

 
$
31,794

 
$
78,860

 
$
6,232,725

Hardware
 
1,112,574

 
51,976

 
20,165

 
16,185

 
1,200,900

Private equity/venture capital
 
9,955,082

 
5,381

 
—

 
658

 
9,961,121

Life science/healthcare
 
1,720,613

 
125,660

 
1,167

 
20,520

 
1,867,960

Premium wine
 
834,537

 
36,955

 
2,476

 
401

 
874,369

Other
 
469,721

 
21,016

 
—

 
32

 
490,769

Total commercial loans
 
19,748,266

 
707,320

 
55,602


116,656

 
20,627,844

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Real estate secured loans
 
2,282,375

 
13,301

 
—

 
2,181

 
2,297,857

Other consumer loans
 
326,851

 
1,179

 
—

 
422

 
328,452

Total consumer loans
 
2,609,226

 
14,480

 
—

 
2,603

 
2,626,309

Total gross loans
 
$
22,357,492

 
$
721,800

 
$
55,602

 
$
119,259

 
$
23,254,153

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 December 31, 2017 and 2016:
 
 
December 31,
(Dollars in thousands)
 
2017
 
2016
Loans modified in TDRs:
 
 
 
 
Commercial loans:
 
 
 
 
Software/internet
 
$
73,455

 
$
52,646

Hardware
 
51,132

 
14,870

Private equity/venture capital
 
350

 
—

Life science/healthcare
 
19,235

 
24,176

Premium wine
 
3,198

 
3,194

Other
 
—

 
387

Total commercial loans
 
147,370

 
95,273

Consumer loans:
 
 
 
 
Other consumer loans
 
423

 
786

Total loans modified in TDRs
 
$
147,793

 
$
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 2017, 2016 and 2015:
 
 
Year ended December 31,
(Dollars in thousands)
 
2017
 
2016
 
2015
Loans modified in TDRs during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software/internet
 
$
42,184

 
$
23,574

 
$
56,790

Hardware
 
51,132

 
14,870

 
286

Private equity/venture capital
 
350

 
—

 
—

Life science/healthcare
 
—

 
1,638

 
51,878

Premium wine
 
177

 
677

 
898

Other
 
—

 
—

 
519

Total commercial loans
 
93,843

 
40,759

 
110,371

Consumer loans:
 
 
 
 
 
 
Other consumer loans
 
—

 
786

 
—

Total loans modified in TDRs during the period (1)
 
$
93,843

 
$
41,545

 
$
110,371

 
(1)
During 2017, we had $3.0 million of partial charge-offs on loans classified as TDRs. We had $3.6 million of partial charge-offs in 2016 and $23.5 million of partial charge-offs in 2015.
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 2017, 2016 and 2015:
 
 
December 31,
(Dollars in thousands)
 
2017 (1)
 
2016
 
2015
TDRs modified within the previous 12 months that defaulted during the period:
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Software/internet
 
$
—

 
$
—

 
$
16,804

Hardware
 
—

 
134

 
286

Premium wine
 
—

 
491

 
—

Life science/healthcare
 
—

 
—

 
943

Total commercial loans
 
—

 
625

 
18,033

Consumer loans:
 
 
 
 
 
 
Other consumer loans
 
—

 
786

 
—

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

 
$
1,411

 
$
18,033