SiliconBeat

The parent company of Silicon Valley Bank reported a “significant increase” in its provision for loan losses during its fourth quarter that it blamed on the “deteriorating economy” in general and on the “current estimated impact of loans including loans to HRJ Capital” in particular.

HRJ Capital, you may recall, is the Woodside investment firm made famous by Hall of Famers Joe Montana and Ronnie Lott plus 49ers teammate Harris Barton, which is in negotiations to be taken over by Silicon Valley Bank, to which it owes $69 million.

SVB Financial more than doubled its allowance for loan losses as of Dec. 31 when it reported $103.7 million, up from $47.3 million the same time the year before.

SVB reported having collected about $10 million on HRJ’s outstanding debt, and said it is “pursuing potential repayment sources or debt restructuring possibilities for the full
amount of the debt.”

Overall all, the company reported consolidated net profit for common shareholders of $2.9 million, down 92 percent from the $34.3 million it reported in the year-ago quarter.