Alexion Pharmaceuticals, Inc.  Notes to Consolidated Financial Statements—(Continued) For the Years Ended December 31, 2007 and 2006, Five Month Period Ended December 31, 2005, and Year Ended July 31, 2005 (amounts in thousands, except share and per share amounts) In 2006, we completed a final Phase III trial of pexelizumab.
After reviewing results from that trial, we along with P&G, determined not to pursue further development of pexelizumab.
Effective March 30, 2007, we and P&G mutually agreed to terminate the collaboration agreement.
As the relevant agreement has been terminated in March 2007, the remaining portion of the $10,000 non-refundable up-front license fee, or $5,343, was recognized as revenue in the year ended December 31, 2007 and is included in contract research revenues.
License and Research and Development Agreements We have entered into a number of license, research and development and manufacturing development agreements since our inception.
These agreements have been made with various research institutions, universities, contractors, collaborators, and government agencies in order to advance and obtain technologies and services related to our business.
License agreements generally provide for an initial fee followed by annual minimum royalty payments.
Additionally, certain agreements call for future payments upon the attainment of agreed upon milestones, such as, but not limited to, Investigational New Drug, or IND, application or approval of Biologics License Application.
These agreements require minimum royalty payments based on sales of products developed from the applicable technologies, if any.
Clinical and manufacturing development agreements generally provide for us to fund manufacturing development and on-going clinical trials.
Clinical trial and development agreements include contract services and outside contractor services including contracted clinical site services related to patient enrolment for our clinical trials.
Manufacturing development agreements include clinical manufacturing and manufacturing development and scale-up.
We have executed a large-scale product supply agreement with Lonza Sales AG for the long-term commercial manufacture of Soliris (see Note 9).
In order to maintain our rights under these agreements, we may be required to provide a minimum level of funding or support.
We may elect to terminate these arrangements.
Accordingly, we recognize the expense and related obligation related to these arrangements over the period of performance.
The minimum fixed payments (assuming non-termination of the above agreements) as of December 31, 2007, for each of the next five years are as follows:
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(1) Included in our senior and subordinated notes balance are shortcut method adjustments for the corresponding interest rate swap hedges recorded as a component of other assets on the balance sheet.
(2) See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—“Capital Resources— Capital Ratios” under Part II, Item 7 in this report for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations below contains forward-looking statements.
These statements are based on current expectations and assumptions, which are subject to risks and uncertainties.
See our cautionary language at the beginning of this Annual Report on Form 10-K.  Actual results could differ materially because of various factors, including but not limited to those discussed in “Risk Factors”, under Part I, Item 1A.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and supplementary data as presented in Item 8 of this Annual Report on Form 10-K.  Certain reclassifications have been made to prior years’ results to conform to the current period’s presentations.
Such reclassifications had no effect on our results of operations or stockholders’ equity.
In addition, certain amounts in prior years’ results have been revised to reflect the correction of immaterial errors associated with previously recognized gains and losses on foreign exchange contracts, as well as the adoption of new accounting standards (ASC 470-20, formerly known as FASB Staff Position (“FSP”) Accounting Principles Board (“APB”) Opinion No.14-1).
Refer to Note 2—“Summary of Significant Accounting Policies” of the “Notes to Consolidated Financial Statements” under Part II, Item 8 of this report for further details.
Overview of Company Operations SVB Financial is a diversified financial services company, as well as a bank holding company and financial holding company.
The Company was incorporated in the state of Delaware in March 1999.
Through our various subsidiaries and divisions, we offer a variety of banking and financial products and services.
For over 25 years, we have been dedicated to helping entrepreneurs succeed, especially in the technology, life science, venture capital/private equity and premium wine industries.
We provide our clients of all sizes and stages with a diverse set of products and services to support them throughout their life cycles.
We offer commercial banking products and services through our principal subsidiary, the Bank, which is a California-state chartered bank founded in 1983 and a member of the Federal Reserve System.
Through its subsidiaries, the Bank also offers brokerage, investment advisory and asset management services.
We also offer non-banking products and services, such as funds management, private equity investment and equity valuation services, through our subsidiaries and divisions.
Management’s Overview of 2009 Financial Performance We recorded net income available to common stockholders for the year ended December 31, 2009 of $22.7 million, or $0.66 per diluted common share.
Net income available to common stockholders for the year ended December 31, 2009 included a non-tax deductible charge of $11.4 million related to CPP repayment in the fourth
(1) Includes average interest-earning deposits in other financial institutions of $176.5 million, $99.1 million and $52.9 million in 2009, 2008 and 2007, respectively.
For 2009 and 2008, balances also include $3.1 billion and $79.1 million, respectively, deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate.
(2) Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income.
(3) Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 35.0 percent for all years presented.
(4) Nonaccrual loans are reflected in the average balances of loans.
(5) Average investment securities of $505.5 million, $380.8 million and $250.8 million in 2009, 2008 and 2007, respectively, were classified as other assets as they were noninterest-earning assets.
These investments primarily consisted of non-marketable securities.
Provision for Loan Losses Our provision for loan losses is based on our evaluation of the adequacy of the existing allowance for loan losses in relation to total gross loans and on our periodic assessment of the inherent and identified risk dynamics of the loan portfolio resulting from reviews of selected individual loans.
For a more detailed discussion of credit quality and the allowance for loan losses, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and “—Consolidated Financial Condition—Credit Quality and the Allowance for Loan Losses” under Part II, Item 7 in this report.
The following table summarizes our provision for loan losses for 2009, 2008 and 2007, respectively:
## Table 2 ##
Our provision for loan losses decreased by $10.5 million to $90.2 million in 2009, compared to $100.7 million in 2008.
Gross loan charge-offs of $143.6 million in 2009 came primarily from our hardware, software and life science client portfolios.
Gross loan charge-offs included $56.4 million of loans that were previously classified as nonperforming loans.
Loan recoveries of $18.4 million in 2009 were primarily due to a partial recovery of $11.4 million from a loan within our hardware industry portfolio that was charged-off in the first quarter of 2009.
The remaining recoveries of $7.0 million were primarily from our life science, software and hardware client portfolios.
Our allowance for loan losses decreased from $107.4 million at December 31, 2008 to $72.5 million at December 31, 2009.
The decrease in allowance for loan losses is reflective of continuing improvement in credit
Table of Contents there is an indication that further investment is unlikely or will not occur, it is often likely the company would need to be sold to repay debt in full.
If reasonable effort has not yielded a likely buyer willing to repay all debt at the close of the sale or on commercially viable terms, the account will most likely be deemed to be impaired.
At December 31, 2009, our lending to private equity firms and venture capital companies represented 20.4 percent compared to 19.2 percent at December 31, 2008.
Many of these clients have capital call lines of credit, the repayment of which is dependent on the payment of capital calls by the underlying limited partner investors in the funds managed by these firms.
During unstable economic times, these limited partner investors may face liquidity issues or have difficulties meeting their financial commitments, which may lead to our clients’ inability to meet their repayment obligations to us.
At December 31, 2009, our asset-based lending, which consists primarily of working capital lines, and our accounts receivable factoring represented 7.8 percent and 6.5 percent, respectively, of total gross loans, compared to 8.2 percent and 6.3 percent, respectively at December 31, 2008.
The repayment of these arrangements is dependent on the financial condition, and payment ability, of third parties with whom our clients do business which could be impacted due to the weakened economic environment.
Approximately 44.9 percent and 9.0 percent of our outstanding total gross loan balances as of December 31, 2009 were to entities based in the states of California and Massachusetts, respectively, compared to 44.7 percent and 10.6 percent, respectively, as of December 31, 2008.
There are no other states with balances greater than 10 percent.
As of December 31, 2009, 71.8 percent, or $3.3 billion, of our outstanding total gross loans were variable-rate loans that adjust at a prescribed measurement date upon a change in our prime-lending rate or other variable indices, compared to 75.3 percent, or $4.2 billion, as of December 31, 2008.
The following table sets forth the remaining contractual maturity distribution of our gross loans at December 31, 2009, for fixed and variable rate loans:
## Table 3 ##
Upon maturity, loans satisfying our credit quality standards may be eligible for renewal.
Such renewals are subject to the normal underwriting and credit administration practices associated with new loans.
We do not grant loans with unconditional extension terms.
Loan Administration Through the authority delegated by the Board of Directors, the Directors’ Loan Committee (“DLC”) oversees our credit policies.
Our DLC, comprised of six of our outside directors, periodically reviews, and approves where appropriate, our credit policies, our loan underwriting, approval, and monitoring activities.

<table><tr><td>Years Ending December 31,</td><td>License Agreements</td><td>Clinical and Manufacturing Development Agreements</td></tr><tr><td>2008</td><td>$707</td><td>$2,860</td></tr><tr><td>2009</td><td>552</td><td>3,750</td></tr><tr><td>2010</td><td>322</td><td>7,500</td></tr><tr><td>2011</td><td>300</td><td>7,500</td></tr><tr><td>2012</td><td>300</td><td>7,500</td></tr></table>
<table><tr><td></td><td colspan="5"> Year ended December 31,</td></tr><tr><td> (Dollars in millions)</td><td> 2009</td><td> 2008</td><td> 2007</td><td> 2006</td><td> 2005</td></tr><tr><td> Other Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Client investment funds:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Client directed investment assets</td><td>$9,693</td><td>$11,886</td><td>$13,049</td><td>$11,221</td><td>$8,863</td></tr><tr><td>Client investment assets under management</td><td>5,905</td><td>5,881</td><td>6,422</td><td>5,166</td><td>3,857</td></tr><tr><td>Sweep money market funds</td><td>—</td><td>813</td><td>2,721</td><td>2,573</td><td>2,247</td></tr><tr><td>Total client investment funds</td><td>$15,598</td><td>$18,580</td><td>$22,192</td><td>$18,960</td><td>$14,967</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td> (Dollars in thousands, except ratios)</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Allowance for loan losses, beginning balance</td><td>$107,396</td><td>$47,293</td><td>$42,747</td></tr><tr><td>Provision for loan losses</td><td>90,180</td><td>100,713</td><td>16,836</td></tr><tr><td>Gross loan charge-offs</td><td>-143,570</td><td>-47,815</td><td>-19,378</td></tr><tr><td>Loan recoveries</td><td>18,444</td><td>7,205</td><td>7,088</td></tr><tr><td>Allowance for loan losses, ending balance</td><td>$72,450</td><td>$107,396</td><td>$47,293</td></tr><tr><td>Provision as a percentage of period-end total gross loans</td><td>1.97%</td><td>1.81%</td><td>0.40%</td></tr><tr><td>Gross loan charge-offs as a percentage of average total gross loans</td><td>3.03</td><td>1.02</td><td>0.55</td></tr><tr><td>Net loan charge-offs as a percentage of average total gross loans</td><td>2.64</td><td>0.87</td><td>0.35</td></tr><tr><td>Allowance for loan losses as a percentage of period-end total gross loans</td><td>1.58</td><td>1.93</td><td>1.13</td></tr><tr><td>Period-end total gross loans</td><td>$4,582,966</td><td>$5,551,636</td><td>$4,178,098</td></tr><tr><td>Average total gross loans</td><td>4,739,210</td><td>4,666,025</td><td>3,547,333</td></tr></table>
<table><tr><td> (Dollars in thousands)</td><td> One Year  or Less</td><td> After One Year and Through Five Years</td><td> After  Five Years</td><td> Total</td></tr><tr><td> Fixed rate loans:</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial loans</td><td>$146,055</td><td>$734,120</td><td>$—</td><td>$880,175</td></tr><tr><td>Premium wine</td><td>24,904</td><td>67,897</td><td>156,550</td><td>249,351</td></tr><tr><td>Community development loans</td><td>45,483</td><td>2,059</td><td>1,901</td><td>49,443</td></tr><tr><td>Consumer and other</td><td>8,572</td><td>39,142</td><td>67,542</td><td>115,256</td></tr><tr><td> Total fixed-rate loans</td><td>$225,014</td><td>$843,218</td><td>$225,993</td><td>$1,294,225</td></tr><tr><td> Variable-rate loans:</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial loans</td><td>$1,478,999</td><td>$1,269,884</td><td>$8,955</td><td>$2,757,838</td></tr><tr><td>Premium wine</td><td>105,710</td><td>68,924</td><td>18,077</td><td>192,711</td></tr><tr><td>Community development loans</td><td>381</td><td>10,501</td><td>12</td><td>10,894</td></tr><tr><td>Consumer and other</td><td>168,766</td><td>73,279</td><td>85,253</td><td>327,298</td></tr><tr><td> Total variable-rate loans</td><td>$1,753,856</td><td>$1,422,588</td><td>$112,297</td><td>$3,288,741</td></tr></table>

Question: What's the average of Client directed investment assets of Year ended December 31, 2009, and Provision for loan losses of Year ended December 31, 2007 ?
Answer: 13264.5