x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 91-1962278 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3003 Tasman Drive, Santa Clara, California | 95054-1191 | |
(Address of principal executive offices) | (Zip Code) |
Page | ||
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Item 2. | ||
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Item 4. | ||
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Item 3. | ||
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Item 6. | ||
(Dollars in thousands, except par value and share data) | September 30, 2012 | December 31, 2011 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 906,680 | $ | 1,114,948 | ||||
Available-for-sale securities | 11,047,730 | 10,536,046 | ||||||
Non-marketable securities | 1,163,815 | 1,004,440 | ||||||
Investment securities | 12,211,545 | 11,540,486 | ||||||
Loans, net of unearned income | 8,192,369 | 6,970,082 | ||||||
Allowance for loan losses | (101,524 | ) | (89,947 | ) | ||||
Net loans | 8,090,845 | 6,880,135 | ||||||
Premises and equipment, net of accumulated depreciation and amortization | 68,270 | 56,471 | ||||||
Accrued interest receivable and other assets | 299,594 | 376,854 | ||||||
Total assets | $ | 21,576,934 | $ | 19,968,894 | ||||
Liabilities and total equity | ||||||||
Liabilities: | ||||||||
Noninterest-bearing demand deposits | $ | 12,598,639 | $ | 11,861,888 | ||||
Interest-bearing deposits | 5,126,427 | 4,847,648 | ||||||
Total deposits | 17,725,066 | 16,709,536 | ||||||
Short-term borrowings | 508,170 | — | ||||||
Other liabilities | 330,038 | 405,321 | ||||||
Long-term debt | 458,314 | 603,648 | ||||||
Total liabilities | 19,021,588 | 17,718,505 | ||||||
Commitments and contingencies (Note 11 and Note 14) | ||||||||
SVBFG stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Common stock, $0.001 par value, 150,000,000 shares authorized; 44,510,524 shares and 43,507,932 shares outstanding, respectively | 45 | 44 | ||||||
Additional paid-in capital | 538,454 | 484,216 | ||||||
Retained earnings | 1,124,415 | 999,733 | ||||||
Accumulated other comprehensive income | 122,010 | 85,399 | ||||||
Total SVBFG stockholders’ equity | 1,784,924 | 1,569,392 | ||||||
Noncontrolling interests | 770,422 | 680,997 | ||||||
Total equity | 2,555,346 | 2,250,389 | ||||||
Total liabilities and total equity | $ | 21,576,934 | $ | 19,968,894 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest income: | ||||||||||||||||
Loans | $ | 121,446 | $ | 101,693 | $ | 344,842 | $ | 284,935 | ||||||||
Available-for-sale securities: | ||||||||||||||||
Taxable | 38,493 | 39,357 | 129,940 | 124,956 | ||||||||||||
Non-taxable | 894 | 899 | 2,693 | 2,723 | ||||||||||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | 1,125 | 1,375 | 3,075 | 4,972 | ||||||||||||
Total interest income | 161,958 | 143,324 | 480,550 | 417,586 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 1,740 | 1,715 | 4,835 | 7,379 | ||||||||||||
Borrowings | 5,788 | 6,154 | 18,414 | 24,000 | ||||||||||||
Total interest expense | 7,528 | 7,869 | 23,249 | 31,379 | ||||||||||||
Net interest income | 154,430 | 135,455 | 457,301 | 386,207 | ||||||||||||
Provision for (reduction of) loan losses | 6,788 | 769 | 29,316 | (2,144 | ) | |||||||||||
Net interest income after provision for loan losses | 147,642 | 134,686 | 427,985 | 388,351 | ||||||||||||
Noninterest income: | ||||||||||||||||
Gains on investment securities, net | 20,228 | 52,262 | 53,876 | 175,279 | ||||||||||||
Foreign exchange fees | 12,211 | 11,546 | 36,345 | 32,397 | ||||||||||||
Deposit service charges | 8,369 | 8,259 | 24,834 | 23,214 | ||||||||||||
Credit card fees | 6,348 | 4,506 | 18,185 | 12,687 | ||||||||||||
Gains on derivative instruments, net | 1,111 | 9,951 | 15,800 | 24,153 | ||||||||||||
Letters of credit and standby letters of credit income | 3,495 | 3,040 | 10,427 | 8,452 | ||||||||||||
Client investment fees | 3,954 | 2,939 | 10,226 | 9,707 | ||||||||||||
Other | 13,423 | 3,108 | 39,165 | 23,384 | ||||||||||||
Total noninterest income | 69,139 | 95,611 | 208,858 | 309,273 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Compensation and benefits | 79,262 | 77,009 | 243,384 | 232,529 | ||||||||||||
Professional services | 17,759 | 16,122 | 48,880 | 43,000 | ||||||||||||
Premises and equipment | 11,247 | 7,220 | 28,230 | 19,572 | ||||||||||||
Business development and travel | 6,838 | 5,886 | 21,743 | 17,429 | ||||||||||||
Net occupancy | 5,666 | 4,967 | 16,667 | 14,163 | ||||||||||||
Correspondent bank fees | 3,000 | 2,336 | 8,528 | 6,701 | ||||||||||||
FDIC assessments | 2,836 | 2,302 | 8,065 | 7,940 | ||||||||||||
(Reduction of) provision for unfunded credit commitments | (400 | ) | 2,055 | 1,264 | 2,131 | |||||||||||
Other | 8,963 | 9,554 | 26,188 | 22,453 | ||||||||||||
Total noninterest expense | 135,171 | 127,451 | 402,949 | 365,918 | ||||||||||||
Income before income tax expense | 81,610 | 102,846 | 233,894 | 331,706 | ||||||||||||
Income tax expense | 28,470 | 26,770 | 83,743 | 92,803 | ||||||||||||
Net income before noncontrolling interests | 53,140 | 76,076 | 150,151 | 238,903 | ||||||||||||
Net income attributable to noncontrolling interests | (10,851 | ) | (38,505 | ) | (25,469 | ) | (102,575 | ) | ||||||||
Net income available to common stockholders | $ | 42,289 | $ | 37,571 | $ | 124,682 | $ | 136,328 | ||||||||
Earnings per common share—basic | $ | 0.95 | $ | 0.87 | $ | 2.82 | $ | 3.18 | ||||||||
Earnings per common share—diluted | 0.94 | 0.86 | 2.79 | 3.12 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income before noncontrolling interests | $ | 53,140 | $ | 76,076 | $ | 150,151 | $ | 238,903 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Change in cumulative translation gains: | ||||||||||||||||
Foreign currency translation gains (losses) | 2,940 | (5,573 | ) | 755 | (3,682 | ) | ||||||||||
Related tax (expense) benefit | (1,190 | ) | 2,280 | (314 | ) | 1,506 | ||||||||||
Change in unrealized gains on available-for-sale securities: | ||||||||||||||||
Unrealized holding gains | 27,596 | 93,701 | 64,631 | 168,378 | ||||||||||||
Related tax expense | (11,473 | ) | (38,329 | ) | (26,290 | ) | (68,858 | ) | ||||||||
Reclassification adjustment for losses (gains) included in net income | 101 | (5 | ) | (3,592 | ) | (37,288 | ) | |||||||||
Related tax (benefit) expense | (41 | ) | 2 | 1,421 | 15,254 | |||||||||||
Other comprehensive income, net of tax | 17,933 | 52,076 | 36,611 | 75,310 | ||||||||||||
Comprehensive income | 71,073 | 128,152 | 186,762 | 314,213 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | (10,851 | ) | (38,505 | ) | (25,469 | ) | (102,575 | ) | ||||||||
Comprehensive income attributable to SVBFG | $ | 60,222 | $ | 89,647 | $ | 161,293 | $ | 211,638 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total SVBFG Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||
(Dollars in thousands) | Shares | Amount | |||||||||||||||||||||||||||||
Balance at December 31, 2010 | 42,268,201 | $ | 42 | $ | 422,334 | $ | 827,831 | $ | 24,143 | $ | 1,274,350 | $ | 473,928 | $ | 1,748,278 | ||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | 999,655 | 1 | 30,271 | — | — | 30,272 | — | 30,272 | |||||||||||||||||||||||
Common stock issued upon settlement of 3.875% Convertible Notes, net of shares received from associated convertible note hedge | 1,024 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other | — | — | 6,548 | — | — | 6,548 | — | 6,548 | |||||||||||||||||||||||
Net income | — | — | — | 136,328 | — | 136,328 | 102,575 | 238,903 | |||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | 79,727 | 79,727 | |||||||||||||||||||||||
Net change in unrealized gains on available-for-sale securities, net of tax | — | — | — | — | 77,486 | 77,486 | — | 77,486 | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | (2,176 | ) | (2,176 | ) | — | (2,176 | ) | ||||||||||||||||||||
Share-based compensation expense | — | — | 13,290 | — | — | 13,290 | — | 13,290 | |||||||||||||||||||||||
Balance at September 30, 2011 | 43,268,880 | $ | 43 | $ | 472,443 | $ | 964,159 | $ | 99,453 | $ | 1,536,098 | $ | 656,230 | $ | 2,192,328 | ||||||||||||||||
Balance at December 31, 2011 | 43,507,932 | $ | 44 | $ | 484,216 | $ | 999,733 | $ | 85,399 | $ | 1,569,392 | $ | 680,997 | $ | 2,250,389 | ||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | 929,032 | 1 | 27,350 | — | — | 27,351 | — | 27,351 | |||||||||||||||||||||||
Common stock issued under ESOP | 73,560 | — | 4,345 | — | — | 4,345 | — | 4,345 | |||||||||||||||||||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other | — | — | 6,312 | — | — | 6,312 | — | 6,312 | |||||||||||||||||||||||
Net income | — | — | — | 124,682 | — | 124,682 | 25,469 | 150,151 | |||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | 63,956 | 63,956 | |||||||||||||||||||||||
Net change in unrealized gains on available-for-sale securities, net of tax | — | — | — | — | 36,170 | 36,170 | — | 36,170 | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | 441 | 441 | — | 441 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 16,231 | — | — | 16,231 | — | 16,231 | |||||||||||||||||||||||
Balance at September 30, 2012 | 44,510,524 | $ | 45 | $ | 538,454 | $ | 1,124,415 | $ | 122,010 | $ | 1,784,924 | $ | 770,422 | $ | 2,555,346 |
Nine months ended September 30, | ||||||||
(Dollars in thousands) | 2012 | 2011 | ||||||
Cash flows from operating activities: | ||||||||
Net income before noncontrolling interests | $ | 150,151 | $ | 238,903 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for (reduction of) loan losses | 29,316 | (2,144 | ) | |||||
Provision for unfunded credit commitments | 1,264 | 2,131 | ||||||
Changes in fair values of derivatives, net | (4,411 | ) | (20,334 | ) | ||||
Gains on investment securities, net | (53,876 | ) | (175,279 | ) | ||||
Depreciation and amortization | 22,651 | 19,999 | ||||||
Amortization of premiums and discounts on available-for-sale securities, net | 42,511 | 18,170 | ||||||
Tax benefit from stock exercises | 1,245 | 854 | ||||||
Amortization of share-based compensation | 16,594 | 13,501 | ||||||
Amortization of deferred loan fees | (42,308 | ) | (43,806 | ) | ||||
Deferred income tax expense | (997 | ) | 3,135 | |||||
Gain on the sale of certain assets related to our equity services management business | (4,243 | ) | — | |||||
Net gain from note repurchases and termination of corresponding interest rate swaps | — | (3,123 | ) | |||||
Changes in other assets and liabilities: | ||||||||
Accrued interest receivable and payable, net | (9,084 | ) | (13,919 | ) | ||||
Accounts receivable and payable, net | 33,277 | (3,441 | ) | |||||
Income tax payable and receivable, net | 6,223 | 8,174 | ||||||
Prepaid FDIC assessments and amortization | 6,896 | 6,468 | ||||||
Accrued compensation | (40,600 | ) | 9,968 | |||||
Foreign exchange spot contracts, net | (41,188 | ) | 10,587 | |||||
Other, net | 12,244 | 20,344 | ||||||
Net cash provided by operating activities | 125,665 | 90,188 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of available-for-sale securities | (2,859,155 | ) | (5,034,425 | ) | ||||
Proceeds from sales of available-for-sale securities | 326,178 | 1,414,794 | ||||||
Proceeds from maturities and pay downs of available-for-sale securities | 2,047,753 | 2,048,439 | ||||||
Purchases of nonmarketable securities (cost and equity method accounting) | (114,134 | ) | (43,260 | ) | ||||
Proceeds from sales of nonmarketable securities (cost and equity method accounting) | 31,903 | 21,524 | ||||||
Purchases of nonmarketable securities (fair value accounting) | (99,062 | ) | (127,362 | ) | ||||
Proceeds from sales and distributions of nonmarketable securities (fair value accounting) | 94,188 | 66,541 | ||||||
Net increase in loans | (1,218,366 | ) | (792,169 | ) | ||||
Proceeds from recoveries of charged-off loans | 8,018 | 21,626 | ||||||
Purchases of premises and equipment | (31,548 | ) | (21,600 | ) | ||||
Proceeds from the sale of certain assets related to our equity services management business | 2,870 | — | ||||||
Net cash used for investing activities | (1,811,355 | ) | (2,445,892 | ) | ||||
Cash flows from financing activities: | ||||||||
Net increase in deposits | 1,015,530 | 1,802,281 | ||||||
Increase (decrease) in short-term borrowings | 508,170 | (37,245 | ) | |||||
Principal payments of other long term debt | (1,222 | ) | — | |||||
Capital contributions from noncontrolling interests, net of distributions | 63,956 | 79,727 | ||||||
Tax benefit from stock exercises | 5,067 | 5,694 | ||||||
Proceeds from issuance of common stock and ESPP | 27,350 | 30,271 | ||||||
Principal payments of 5.70% Senior Notes | (141,429 | ) | — | |||||
Payments for repurchases of portions of 5.70% Senior Notes and 6.05% Subordinated Notes, including repurchase premiums and associated fees | — | (346,443 | ) | |||||
Proceeds from termination of portions of interest rate swaps associated with 5.70% Senior Notes and 6.05% Subordinated Notes | — | 36,959 | ||||||
Payments for settlement of 3.875% Convertible Notes | — | (250,000 | ) | |||||
Net cash provided by financing activities | 1,477,422 | 1,321,244 | ||||||
Net decrease in cash and cash equivalents | (208,268 | ) | (1,034,460 | ) | ||||
Cash and cash equivalents at beginning of period | 1,114,948 | 3,076,432 | ||||||
Cash and cash equivalents at end of period | $ | 906,680 | $ | 2,041,972 | ||||
Supplemental disclosures: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 28,000 | $ | 37,776 | ||||
Income taxes | 69,094 | 74,313 | ||||||
Noncash items during the period: | ||||||||
Unrealized gains on available-for-sale securities, net of tax | $ | 36,170 | $ | 77,486 |
1. | Basis of Presentation |
1. | We have the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; |
2. | The aggregate indirect and direct variable interests held by the Company have the obligation to absorb losses or the right to receive benefits from the entity that could be significant to the VIE; and, |
3. | Qualitative and quantitative factors regarding the nature, size, and form of our involvement with the VIE. |
2. | Stockholders’ Equity and EPS |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars and shares in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Numerator: | ||||||||||||||||
Net income available to common stockholders | $ | 42,289 | $ | 37,571 | $ | 124,682 | $ | 136,328 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding-basic | 44,449 | 43,233 | 44,147 | 42,882 | ||||||||||||
Weighted average effect of dilutive securities: | ||||||||||||||||
Stock options and ESPP | 346 | 452 | 402 | 610 | ||||||||||||
Restricted stock units | 120 | 106 | 143 | 122 | ||||||||||||
3.875% Convertible Notes (1) | — | — | — | 27 | ||||||||||||
Denominator for diluted calculation | 44,915 | 43,791 | 44,692 | 43,641 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.95 | $ | 0.87 | $ | 2.82 | $ | 3.18 | ||||||||
Diluted | $ | 0.94 | $ | 0.86 | $ | 2.79 | $ | 3.12 |
(1) | Our $250 million 3.875% Convertible Notes matured on April 15, 2011. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||
(Shares in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||
Stock options | 795 | 1,264 | 658 | 663 | ||||||||
Restricted stock units | 220 | 279 | — | 128 | ||||||||
Total | 1,015 | 1,543 | 658 | 791 |
3. | Share-Based Compensation |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Share-based compensation expense | $ | 5,617 | $ | 4,552 | $ | 16,594 | $ | 13,501 | ||||||||
Income tax benefit related to share-based compensation expense | (1,720 | ) | (1,256 | ) | (4,408 | ) | (3,532 | ) |
(Dollars in thousands) | Unrecognized Expense | Average Expected Recognition Period - in Years | ||||
Stock options | $ | 17,308 | 2.80 | |||
Restricted stock units | 26,662 | 2.81 | ||||
Total unrecognized share-based compensation expense | $ | 43,970 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life in Years | Aggregate Intrinsic Value of In-The- Money Options | ||||||||||
Outstanding at December 31, 2011 | 2,439,360 | $ | 42.64 | ||||||||||
Granted | 395,563 | 63.90 | |||||||||||
Exercised | (680,929 | ) | 35.28 | ||||||||||
Forfeited | (56,996 | ) | 47.90 | ||||||||||
Expired | (4,568 | ) | 42.50 | ||||||||||
Outstanding at September 30, 2012 | 2,092,430 | 48.91 | 4.14 | $ | 25,582,079 | ||||||||
Vested and expected to vest at September 30, 2012 | 2,003,907 | 48.50 | 4.07 | 25,221,007 | |||||||||
Exercisable at September 30, 2012 | 1,088,716 | 44.35 | 2.88 | 17,542,729 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Nonvested at December 31, 2011 | 499,119 | $ | 52.72 | ||||
Granted | 313,040 | 63.83 | |||||
Vested | (144,953 | ) | 51.25 | ||||
Forfeited | (26,700 | ) | 54.89 | ||||
Nonvested at September 30, 2012 | 640,506 | 58.39 |
4. | Cash and Cash Equivalents |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | ||||||
Cash and due from banks (1) | $ | 678,239 | $ | 852,010 | ||||
Securities purchased under agreements to resell (2) | 116,276 | 175,553 | ||||||
Other short-term investment securities | 112,165 | 87,385 | ||||||
Total cash and cash equivalents | $ | 906,680 | $ | 1,114,948 |
(1) | At September 30, 2012 and December 31, 2011, $139.1 million and $100.1 million, respectively, of our cash and due from banks was deposited at the FRB and was earning interest at the Federal Funds target rate, and interest-earning deposits in other financial institutions were $187.6 million and $371.5 million, respectively. |
(2) | At September 30, 2012 and December 31, 2011, securities purchased under agreements to resell were collateralized by U.S. treasury securities and U.S. agency securities with aggregate fair values of $118.6 million and $179.1 million, respectively. None of these securities received as collateral were sold or repledged as of September 30, 2012 and December 31, 2011. |
5. | Investment Securities |
September 30, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | ||||||||||||||||||||||||
Available-for-sale securities, at fair value: | ||||||||||||||||||||||||||||||||
U.S. treasury securities | $ | 25,101 | $ | 328 | $ | — | $ | 25,429 | $ | 25,233 | $ | 731 | $ | — | $ | 25,964 | ||||||||||||||||
U.S. agency debentures | 2,857,336 | 78,814 | — | 2,936,150 | 2,822,158 | 52,864 | (90 | ) | 2,874,932 | |||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 1,535,934 | 54,648 | — | 1,590,582 | 1,529,466 | 34,926 | (106 | ) | 1,564,286 | |||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 4,119,707 | 49,160 | (742 | ) | 4,168,125 | 3,317,285 | 56,546 | (71 | ) | 3,373,760 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 1,928,853 | 10,951 | (5 | ) | 1,939,799 | 2,416,158 | 1,554 | (4,334 | ) | 2,413,378 | ||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 273,021 | 6,486 | — | 279,507 | 176,646 | 2,047 | — | 178,693 | ||||||||||||||||||||||||
Municipal bonds and notes | 91,643 | 8,578 | — | 100,221 | 92,241 | 8,257 | — | 100,498 | ||||||||||||||||||||||||
Equity securities | 3,941 | 4,265 | (289 | ) | 7,917 | 5,554 | 180 | (1,199 | ) | 4,535 | ||||||||||||||||||||||
Total available-for-sale securities | $ | 10,835,536 | $ | 213,230 | $ | (1,036 | ) | $ | 11,047,730 | $ | 10,384,741 | $ | 157,105 | $ | (5,800 | ) | $ | 10,536,046 | ||||||||||||||
Non-marketable securities: | ||||||||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments (1) | 658,409 | 611,824 | ||||||||||||||||||||||||||||||
Other venture capital investments (2) | 118,622 | 124,121 | ||||||||||||||||||||||||||||||
Other investments | — | 987 | ||||||||||||||||||||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||||||||||||||||||
Other investments (3) | 141,761 | 68,252 | ||||||||||||||||||||||||||||||
Low income housing tax credit funds | 66,806 | 34,894 | ||||||||||||||||||||||||||||||
Non-marketable securities (cost method accounting): | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments (4) | 158,275 | 145,007 | ||||||||||||||||||||||||||||||
Other investments | 19,942 | 19,355 | ||||||||||||||||||||||||||||||
Total non-marketable securities | 1,163,815 | 1,004,440 | ||||||||||||||||||||||||||||||
Total investment securities | $ | 12,211,545 | $ | 11,540,486 |
(1) | The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and our ownership percentage of each fund at September 30, 2012 and December 31, 2011 (fair value accounting): |
September 30, 2012 | December 31, 2011 | |||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||
SVB Strategic Investors Fund, LP | $ | 35,963 | 12.6 | % | $ | 39,567 | 12.6 | % | ||||||
SVB Strategic Investors Fund II, LP | 103,302 | 8.6 | 122,619 | 8.6 | ||||||||||
SVB Strategic Investors Fund III, LP | 208,809 | 5.9 | 218,429 | 5.9 | ||||||||||
SVB Strategic Investors Fund IV, LP | 161,082 | 5.0 | 122,076 | 5.0 | ||||||||||
Strategic Investors Fund V Funds | 28,908 | Various | 8,838 | 0.3 | ||||||||||
SVB Capital Preferred Return Fund, LP | 51,460 | 20.0 | 42,580 | 20.0 | ||||||||||
SVB Capital—NT Growth Partners, LP | 61,253 | 33.0 | 43,958 | 33.0 | ||||||||||
SVB Capital Partners II, LP (i) | 1,341 | 5.1 | 2,390 | 5.1 | ||||||||||
Other private equity fund (ii) | 6,291 | 58.2 | 11,367 | 58.2 | ||||||||||
Total venture capital and private equity fund investments | $ | 658,409 | $ | 611,824 |
(i) | At September 30, 2012, we had a direct ownership interest of 1.3 percent and an indirect ownership interest of 3.8 percent in the fund through our ownership interest of SVB Strategic Investors Fund II, LP. |
(ii) | At September 30, 2012, we had a direct ownership interest of 41.5 percent and indirect ownership interests of 12.6 percent and 4.1 percent in the fund through our ownership interest of SVB Capital—NT Growth Partners, LP and SVB Capital Preferred Return Fund, LP, respectively. |
(2) | The following table shows the amounts of other venture capital investments held by the following consolidated funds and our ownership percentage of each fund at September 30, 2012 and December 31, 2011 (fair value accounting): |
September 30, 2012 | December 31, 2011 | |||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||
Silicon Valley BancVentures, LP | $ | 16,737 | 10.7 | % | $ | 17,878 | 10.7 | % | ||||||
SVB Capital Partners II, LP (i) | 55,686 | 5.1 | 61,099 | 5.1 | ||||||||||
SVB India Capital Partners I, LP | 42,713 | 14.4 | 42,832 | 14.4 | ||||||||||
SVB Capital Shanghai Yangpu Venture Capital Fund | 3,486 | 6.8 | 2,312 | 6.8 | ||||||||||
Total other venture capital investments | $ | 118,622 | $ | 124,121 |
(i) | At September 30, 2012, we had a direct ownership interest of 1.3 percent and an indirect ownership interest of 3.8 percent in the fund through our ownership of SVB Strategic Investors Fund II, LP. |
(3) | The following table shows the carrying value and our ownership percentage of each investment at September 30, 2012 and December 31, 2011 (equity method accounting): |
September 30, 2012 | December 31, 2011 | |||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||
Gold Hill Venture Lending 03, LP (i) | $ | 9,187 | 9.3 | % | $ | 16,072 | 9.3 | % | ||||||
Gold Hill Capital 2008, LP (ii) | 20,491 | 15.5 | 19,328 | 15.5 | ||||||||||
Partners for Growth II, LP | 3,199 | 24.2 | 3,785 | 24.2 | ||||||||||
China Joint Venture investment (iii) | 78,484 | 50.0 | — | — | ||||||||||
Other investments | 30,400 | N/A | 29,067 | N/A | ||||||||||
Total other investments (equity method accounting) | $ | 141,761 | $ | 68,252 |
(i) | At September 30, 2012, we had a direct ownership interest of 4.8 percent in the fund and an indirect interest in the fund through our investment in Gold Hill Venture Lending Partners 3, LLC (“GHLLC”) of 4.5 percent. |
(ii) | At September 30, 2012, we had a direct ownership interest of 11.5 percent in the fund and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of 4.0 percent. |
(iii) | On May 3, 2012, we contributed $79.7 million to SPD Silicon Valley Bank Co., Ltd. ("SPD-SVB"), our joint venture bank in China. |
(4) | Represents investments in 325 and 329 funds (primarily venture capital funds) at September 30, 2012 and December 31, 2011, respectively, where our ownership interest is less than 5% of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships operating activities and financial policies. For the three months ended September 30, 2012, we recognized OTTI losses of $0.4 million resulting from other-than-temporary declines in value for 17 of the 325 investments. For the nine months ended September 30, 2012, we recognized OTTI losses of $0.9 million resulting from other-than-temporary declines in value for 43 of the 325 investments. The OTTI losses are included in net gains on investment securities, a component of noninterest income. We concluded that any declines in value for the remaining investments were temporary and as such, no OTTI was required to be recognized. At September 30, 2012, the carrying value of these venture capital and private equity fund investments (cost method accounting) was $158.3 million, and the estimated fair value was $190.0 million. |
September 30, 2012 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | $ | 205,942 | $ | (742 | ) | $ | — | $ | — | $ | 205,942 | $ | (742 | ) | ||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 10,611 | (5 | ) | — | — | 10,611 | (5 | ) | ||||||||||||||||
Equity securities | 1,551 | (95 | ) | 250 | (194 | ) | 1,801 | (289 | ) | |||||||||||||||
Total temporarily impaired securities (1) | $ | 218,104 | $ | (842 | ) | $ | 250 | $ | (194 | ) | $ | 218,354 | $ | (1,036 | ) |
(1) | As of September 30, 2012, we identified a total of 10 investments that were in unrealized loss positions, of which three investments totaling $0.3 million with unrealized losses of $0.2 million have been in an impaired position for a period of time greater than 12 months. As of September 30, 2012, we do not intend to sell any impaired debt or equity securities prior to recovery of our adjusted cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our adjusted cost basis. Based on our analysis as of September 30, 2012, we deem all impairments to be temporary, and therefore changes in value for our temporarily impaired securities as of the same date are included in other comprehensive income. Market valuations and impairment analyses on assets in the available-for-sale securities portfolio are reviewed and monitored on a quarterly basis. |
December 31, 2011 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||
U.S. agency debentures | $ | 50,994 | $ | (90 | ) | $ | — | $ | — | $ | 50,994 | $ | (90 | ) | ||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 54,588 | (106 | ) | — | — | 54,588 | (106 | ) | ||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 50,125 | (71 | ) | — | — | 50,125 | (71 | ) | ||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 1,521,589 | (4,334 | ) | — | — | 1,521,589 | (4,334 | ) | ||||||||||||||||
Equity securities | 3,831 | (1,199 | ) | — | — | 3,831 | (1,199 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 1,681,127 | $ | (5,800 | ) | $ | — | $ | — | $ | 1,681,127 | $ | (5,800 | ) |
September 30, 2012 | |||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Value | Weighted- Average Yield | Carrying Value | Weighted- Average Yield | Carrying Value | Weighted- Average Yield | Carrying Value | Weighted- Average Yield | Carrying Value | Weighted- Average Yield | |||||||||||||||||||||||||
U.S. treasury securities | $ | 25,429 | 2.39 | % | $ | 25,429 | 2.39 | % | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||||||||
U.S. agency debentures | 2,936,150 | 1.56 | 51,027 | 1.05 | 2,653,180 | 1.49 | 231,943 | 2.43 | — | — | |||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 1,590,582 | 2.34 | — | — | — | — | 1,470,437 | 2.27 | 120,145 | 3.29 | |||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate | 4,168,125 | 2.06 | — | — | — | — | — | — | 4,168,125 | 2.06 | |||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations - variable rate | 1,939,799 | 0.70 | — | — | — | — | — | — | 1,939,799 | 0.70 | |||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 279,507 | 2.01 | — | — | — | — | — | — | 279,507 | 2.01 | |||||||||||||||||||||||||
Municipal bonds and notes | 100,221 | 4.99 | 933 | 5.20 | 17,333 | 5.60 | 49,532 | 6.02 | 32,423 | 6.24 | |||||||||||||||||||||||||
Total | $ | 11,039,813 | 1.75 | $ | 77,389 | 1.54 | $ | 2,670,513 | 1.52 | $ | 1,751,912 | 2.39 | $ | 6,539,999 | 1.70 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Gross gains on investment securities: | ||||||||||||||||
Available-for-sale securities, at fair value (1) | $ | 20 | $ | 5 | $ | 5,363 | $ | 37,382 | ||||||||
Marketable securities (fair value accounting) | 255 | 470 | 3,874 | 912 | ||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Venture capital and private equity fund investments | 28,639 | 34,640 | 88,037 | 117,344 | ||||||||||||
Other venture capital investments | 2,515 | 22,058 | 5,848 | 29,077 | ||||||||||||
Other investments | — | — | 21 | 20 | ||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||
Other investments | 5,571 | 2,192 | 12,382 | 8,708 | ||||||||||||
Non-marketable securities (cost method accounting): | ||||||||||||||||
Venture capital and private equity fund investments | 694 | 735 | 1,639 | 1,791 | ||||||||||||
Other investments | 1,406 | 8 | 1,712 | 2,437 | ||||||||||||
Total gross gains on investment securities | 39,100 | 60,108 | 118,876 | 197,671 | ||||||||||||
Gross losses on investment securities: | ||||||||||||||||
Available-for-sale securities, at fair value (1) | (121 | ) | — | (1,771 | ) | (94 | ) | |||||||||
Marketable securities (fair value accounting) | (553 | ) | (1,691 | ) | (1,307 | ) | (5,806 | ) | ||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Venture capital and private equity fund investments | (16,557 | ) | (2,373 | ) | (49,090 | ) | (9,274 | ) | ||||||||
Other venture capital investments | (125 | ) | (3,351 | ) | (10,007 | ) | (5,015 | ) | ||||||||
Other investments | — | (16 | ) | — | (16 | ) | ||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||
Other investments | (1,091 | ) | (50 | ) | (1,794 | ) | (1,359 | ) | ||||||||
Non-marketable securities (cost method accounting): | ||||||||||||||||
Venture capital and private equity fund investments | (423 | ) | (365 | ) | (963 | ) | (797 | ) | ||||||||
Other investments | (2 | ) | — | (68 | ) | (31 | ) | |||||||||
Total gross losses on investment securities | (18,872 | ) | (7,846 | ) | (65,000 | ) | (22,392 | ) | ||||||||
Gains on investment securities, net | $ | 20,228 | $ | 52,262 | $ | 53,876 | $ | 175,279 | ||||||||
Gains attributable to noncontrolling interests, including carried interest | $ | 12,776 | $ | 42,961 | $ | 34,616 | $ | 112,783 |
(1) | Includes realized gains on sales of available-for-sale securities that are recognized in the income statement. Unrealized gains on available-for-sale securities are recognized in other comprehensive income. The cost basis of available-for-sale securities sold is determined on a specific identification basis. |
6. | Loans and Allowance for Loan Losses |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | ||||||
Commercial loans: | ||||||||
Software | $ | 2,952,866 | $ | 2,492,849 | ||||
Hardware | 1,192,716 | 952,303 | ||||||
Venture capital/private equity | 1,393,943 | 1,117,419 | ||||||
Life science | 1,027,693 | 863,737 | ||||||
Premium wine | 133,810 | 130,245 | ||||||
Other | 309,970 | 342,147 | ||||||
Total commercial loans | 7,010,998 | 5,898,700 | ||||||
Real estate secured loans: | ||||||||
Premium wine (1) | 379,837 | 345,988 | ||||||
Consumer loans (2) | 609,370 | 534,001 | ||||||
Total real estate secured loans | 989,207 | 879,989 | ||||||
Construction loans | 48,558 | 30,256 | ||||||
Consumer loans | 143,606 | 161,137 | ||||||
Total loans, net of unearned income (3) | $ | 8,192,369 | $ | 6,970,082 |
(1) | Included in our premium wine portfolio are gross construction loans of $148.4 million and $110.8 million at September 30, 2012 and December 31, 2011, respectively. |
(2) | Consumer loans secured by real estate at September 30, 2012 and December 31, 2011 were comprised of the following: |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | ||||||
Loans for personal residence | $ | 432,004 | $ | 350,359 | ||||
Loans to eligible employees | 107,969 | 99,704 | ||||||
Home equity lines of credit | 69,397 | 83,938 | ||||||
Consumer loans secured by real estate | $ | 609,370 | $ | 534,001 |
(3) | Included within our total loan portfolio are credit card loans of $66.2 million and $49.7 million at September 30, 2012 and December 31, 2011, respectively. |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | ||||||
Commercial loans: | ||||||||
Software | $ | 2,952,866 | $ | 2,492,849 | ||||
Hardware | 1,192,716 | 952,303 | ||||||
Venture capital/private equity | 1,393,943 | 1,117,419 | ||||||
Life science | 1,027,693 | 863,737 | ||||||
Premium wine | 513,647 | 476,233 | ||||||
Other | 358,528 | 372,403 | ||||||
Total commercial loans | 7,439,393 | 6,274,944 | ||||||
Consumer loans: | ||||||||
Real estate secured loans | 609,370 | 534,001 | ||||||
Other consumer loans | 143,606 | 161,137 | ||||||
Total consumer loans | 752,976 | 695,138 | ||||||
Total loans, net of unearned income | $ | 8,192,369 | $ | 6,970,082 |
(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 | ||||||||||||||||||
September 30, 2012: | ||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Software | $ | 5,323 | $ | 273 | $ | — | $ | 5,596 | $ | 2,975,008 | $ | — | ||||||||||||
Hardware | 8,901 | 181 | 5,000 | 14,082 | 1,163,848 | 5,000 | ||||||||||||||||||
Venture capital/private equity | 1,651 | — | — | 1,651 | 1,406,695 | — | ||||||||||||||||||
Life science | 8,646 | 1,875 | — | 10,521 | 1,027,806 | — | ||||||||||||||||||
Premium wine | 49 | — | — | 49 | 512,621 | — | ||||||||||||||||||
Other | 74 | — | — | 74 | 358,862 | — | ||||||||||||||||||
Total commercial loans | 24,644 | 2,329 | 5,000 | 31,973 | 7,444,840 | 5,000 | ||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||
Real estate secured loans | — | — | — | — | 607,117 | — | ||||||||||||||||||
Other consumer loans | — | — | — | — | 142,841 | — | ||||||||||||||||||
Total consumer loans | — | — | — | — | 749,958 | — | ||||||||||||||||||
Total gross loans excluding impaired loans | 24,644 | 2,329 | 5,000 | 31,973 | 8,194,798 | 5,000 | ||||||||||||||||||
Impaired loans | 331 | 501 | 2,953 | 3,785 | 35,612 | — | ||||||||||||||||||
Total gross loans | $ | 24,975 | $ | 2,830 | $ | 7,953 | $ | 35,758 | $ | 8,230,410 | $ | 5,000 | ||||||||||||
December 31, 2011: | ||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Software | $ | 415 | $ | 1,006 | $ | — | $ | 1,421 | $ | 2,515,327 | $ | — | ||||||||||||
Hardware | 1,951 | 45 | — | 1,996 | 954,690 | — | ||||||||||||||||||
Venture capital/private equity | 45 | — | — | 45 | 1,128,475 | — | ||||||||||||||||||
Life science | 398 | 78 | — | 476 | 871,626 | — | ||||||||||||||||||
Premium wine | 1 | 174 | — | 175 | 475,406 | — | ||||||||||||||||||
Other | 15 | — | — | 15 | 370,539 | — | ||||||||||||||||||
Total commercial loans | 2,825 | 1,303 | — | 4,128 | 6,316,063 | — | ||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||
Real estate secured loans | — | — | — | — | 515,534 | — | ||||||||||||||||||
Other consumer loans | 590 | — | — | 590 | 157,389 | — | ||||||||||||||||||
Total consumer loans | 590 | — | — | 590 | 672,923 | — | ||||||||||||||||||
Total gross loans excluding impaired loans | 3,415 | 1,303 | — | 4,718 | 6,988,986 | — | ||||||||||||||||||
Impaired loans | 1,350 | 1,794 | 6,613 | 9,757 | 26,860 | — | ||||||||||||||||||
Total gross loans | $ | 4,765 | $ | 3,097 | $ | 6,613 | $ | 14,475 | $ | 7,015,846 | $ | — |
(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 | ||||||||||||
September 30, 2012: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 2,634 | $ | 182 | $ | 2,816 | $ | 3,324 | ||||||||
Hardware | 27,129 | — | 27,129 | 42,415 | ||||||||||||
Life Science | — | — | — | — | ||||||||||||
Premium wine | — | 3,079 | 3,079 | 3,317 | ||||||||||||
Other | — | 2,745 | 2,745 | 6,894 | ||||||||||||
Total commercial loans | 29,763 | 6,006 | 35,769 | 55,950 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | 120 | 2,288 | 2,408 | 7,407 | ||||||||||||
Other consumer loans | 1,220 | — | 1,220 | 1,371 | ||||||||||||
Total consumer loans | 1,340 | 2,288 | 3,628 | 8,778 | ||||||||||||
Total | $ | 31,103 | $ | 8,294 | $ | 39,397 | $ | 64,728 | ||||||||
December 31, 2011: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 1,142 | $ | — | $ | 1,142 | $ | 1,540 | ||||||||
Hardware | 4,754 | 429 | 5,183 | 8,843 | ||||||||||||
Life science | — | 311 | 311 | 523 | ||||||||||||
Premium wine | — | 3,212 | 3,212 | 3,341 | ||||||||||||
Other | 4,303 | 1,050 | 5,353 | 9,104 | ||||||||||||
Total commercial loans | 10,199 | 5,002 | 15,201 | 23,351 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | — | 18,283 | 18,283 | 22,410 | ||||||||||||
Other consumer loans | 3,133 | — | 3,133 | 3,197 | ||||||||||||
Total consumer loans | 3,133 | 18,283 | 21,416 | 25,607 | ||||||||||||
Total | $ | 13,332 | $ | 23,285 | $ | 36,617 | $ | 48,958 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Average impaired loans: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 2,689 | $ | 2,562 | $ | 2,040 | $ | 2,652 | ||||||||
Hardware | 18,490 | 7,071 | 17,407 | 6,086 | ||||||||||||
Life science | — | 827 | 78 | 1,498 | ||||||||||||
Premium wine | 3,093 | 1,954 | 3,334 | 2,345 | ||||||||||||
Other | 2,619 | 7,604 | 3,590 | 4,453 | ||||||||||||
Total commercial loans | 26,891 | 20,018 | 26,449 | 17,034 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | 2,411 | 18,746 | 5,967 | 19,476 | ||||||||||||
Other consumer loans | 1,266 | 1,107 | 2,152 | 369 | ||||||||||||
Total consumer loans | 3,677 | 19,853 | 8,119 | 19,845 | ||||||||||||
Total average impaired loans | $ | 30,568 | $ | 39,871 | $ | 34,568 | $ | 36,879 |
Three months ended September 30, 2012 (dollars in thousands) | Beginning Balance June 30, 2012 | Charge-offs | Recoveries | Provision for (Reduction of) Loan Losses | Ending Balance September 30, 2012 | |||||||||||||||
Commercial loans: | ||||||||||||||||||||
Software | $ | 37,981 | $ | — | $ | 374 | $ | (1,110 | ) | $ | 37,245 | |||||||||
Hardware | 22,632 | (1,849 | ) | 106 | 6,796 | 27,685 | ||||||||||||||
Venture capital/private equity | 9,652 | — | — | 991 | 10,643 | |||||||||||||||
Life science | 11,660 | (2,781 | ) | 3 | 3,281 | 12,163 | ||||||||||||||
Premium wine | 3,396 | — | 228 | (463 | ) | 3,161 | ||||||||||||||
Other | 4,942 | (7 | ) | 30 | (1,708 | ) | 3,257 | |||||||||||||
Total commercial loans | 90,263 | (4,637 | ) | 741 | 7,787 | 94,154 | ||||||||||||||
Consumer loans | 7,903 | — | 466 | (999 | ) | 7,370 | ||||||||||||||
Total allowance for loan losses | $ | 98,166 | $ | (4,637 | ) | $ | 1,207 | $ | 6,788 | $ | 101,524 |
Nine months ended September 30, 2012 (dollars in thousands) | Beginning Balance December 31, 2011 | Charge-offs | Recoveries | Provision for (Reduction of) Loan Losses | Ending Balance September 30, 2012 | |||||||||||||||
Commercial loans: | ||||||||||||||||||||
Software | $ | 38,263 | $ | (2,977 | ) | $ | 4,462 | $ | (2,503 | ) | $ | 37,245 | ||||||||
Hardware | 16,810 | (16,110 | ) | 540 | 26,445 | 27,685 | ||||||||||||||
Venture capital/private equity | 7,319 | — | — | 3,324 | 10,643 | |||||||||||||||
Life science | 10,243 | (3,016 | ) | 316 | 4,620 | 12,163 | ||||||||||||||
Premium wine | 3,914 | (584 | ) | 493 | (662 | ) | 3,161 | |||||||||||||
Other | 5,817 | (2,463 | ) | 1,181 | (1,278 | ) | 3,257 | |||||||||||||
Total commercial loans | 82,366 | (25,150 | ) | 6,992 | 29,946 | 94,154 | ||||||||||||||
Consumer loans | 7,581 | (607 | ) | 1,026 | (630 | ) | 7,370 | |||||||||||||
Total allowance for loan losses | $ | 89,947 | $ | (25,757 | ) | $ | 8,018 | $ | 29,316 | $ | 101,524 |
Three months ended September 30, 2011 (dollars in thousands) | Beginning Balance June 30, 2011 | Charge-offs | Recoveries | Provision for (Reduction of) Loan Losses | Ending Balance September 30, 2011 | |||||||||||||||
Commercial loans: | ||||||||||||||||||||
Software | $ | 31,873 | $ | (3,125 | ) | $ | 2,718 | $ | 4,899 | $ | 36,365 | |||||||||
Hardware | 16,042 | (4,813 | ) | 44 | 2,304 | 13,577 | ||||||||||||||
Venture capital/private equity | 8,307 | — | — | (497 | ) | 7,810 | ||||||||||||||
Life science | 7,225 | (310 | ) | 3,359 | (2,110 | ) | 8,164 | |||||||||||||
Premium wine | 4,009 | — | 360 | (354 | ) | 4,015 | ||||||||||||||
Other | 5,869 | — | 64 | (359 | ) | 5,574 | ||||||||||||||
Total commercial loans | 73,325 | (8,248 | ) | 6,545 | 3,883 | 75,505 | ||||||||||||||
Consumer loans | 8,830 | — | 4,025 | (3,114 | ) | 9,741 | ||||||||||||||
Total allowance for loan losses | $ | 82,155 | $ | (8,248 | ) | $ | 10,570 | $ | 769 | $ | 85,246 |
Nine months ended September 30, 2011 (dollars in thousands) | Beginning Balance December 31, 2010 | Charge-offs | Recoveries | Provision for (Reduction of) Loan Losses | Ending Balance September 30, 2011 | |||||||||||||||
Commercial loans: | ||||||||||||||||||||
Software | $ | 29,288 | $ | (4,747 | ) | $ | 10,638 | $ | 1,186 | $ | 36,365 | |||||||||
Hardware | 14,688 | (4,828 | ) | 356 | 3,361 | 13,577 | ||||||||||||||
Venture capital/private equity | 8,241 | — | — | (431 | ) | 7,810 | ||||||||||||||
Life science | 9,077 | (3,972 | ) | 4,487 | (1,428 | ) | 8,164 | |||||||||||||
Premium wine | 5,492 | (449 | ) | 1,090 | (2,118 | ) | 4,015 | |||||||||||||
Other | 5,318 | (2,867 | ) | 471 | 2,652 | 5,574 | ||||||||||||||
Total commercial loans | 72,104 | (16,863 | ) | 17,042 | 3,222 | 75,505 | ||||||||||||||
Consumer loans | 10,523 | — | 4,584 | (5,366 | ) | 9,741 | ||||||||||||||
Total allowance for loan losses | $ | 82,627 | $ | (16,863 | ) | $ | 21,626 | $ | (2,144 | ) | $ | 85,246 |
September 30, 2012 | December 31, 2011 | |||||||||||||||
(Dollars in thousands) | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | ||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 653 | $ | 36,592 | $ | 526 | $ | 37,737 | ||||||||
Hardware | 5,061 | 22,624 | 1,261 | 15,549 | ||||||||||||
Venture capital/private equity | — | 10,643 | — | 7,319 | ||||||||||||
Life science | — | 12,163 | — | 10,243 | ||||||||||||
Premium wine | — | 3,161 | — | 3,914 | ||||||||||||
Other | — | 3,257 | 1,180 | 4,637 | ||||||||||||
Total commercial loans | 5,714 | 88,440 | 2,967 | 79,399 | ||||||||||||
Consumer loans | 289 | 7,081 | 740 | 6,841 | ||||||||||||
Total allowance for loan losses | $ | 6,003 | $ | 95,521 | $ | 3,707 | $ | 86,240 |
(Dollars in thousands) | Pass | Performing (Criticized) | Impaired | Total | ||||||||||||
September 30, 2012: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 2,751,238 | $ | 229,366 | $ | 2,816 | $ | 2,983,420 | ||||||||
Hardware | 1,069,973 | 107,957 | 27,129 | 1,205,059 | ||||||||||||
Venture capital/private equity | 1,406,746 | 1,600 | — | 1,408,346 | ||||||||||||
Life science | 939,092 | 99,235 | — | 1,038,327 | ||||||||||||
Premium wine | 501,507 | 11,163 | 3,079 | 515,749 | ||||||||||||
Other | 335,201 | 23,735 | 2,745 | 361,681 | ||||||||||||
Total commercial loans | 7,003,757 | 473,056 | 35,769 | 7,512,582 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | 588,678 | 18,439 | 2,408 | 609,525 | ||||||||||||
Other consumer loans | 131,548 | 11,293 | 1,220 | 144,061 | ||||||||||||
Total consumer loans | 720,226 | 29,732 | 3,628 | 753,586 | ||||||||||||
Total gross loans | $ | 7,723,983 | $ | 502,788 | $ | 39,397 | $ | 8,266,168 | ||||||||
December 31, 2011: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 2,290,497 | $ | 226,251 | $ | 1,142 | $ | 2,517,890 | ||||||||
Hardware | 839,230 | 117,456 | 5,183 | 961,869 | ||||||||||||
Venture capital/private equity | 1,120,373 | 8,147 | — | 1,128,520 | ||||||||||||
Life science | 748,129 | 123,973 | 311 | 872,413 | ||||||||||||
Premium wine | 434,309 | 41,272 | 3,212 | 478,793 | ||||||||||||
Other | 353,434 | 17,120 | 5,353 | 375,907 | ||||||||||||
Total commercial loans | 5,785,972 | 534,219 | 15,201 | 6,335,392 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | 497,060 | 18,474 | 18,283 | 533,817 | ||||||||||||
Other consumer loans | 151,101 | 6,878 | 3,133 | 161,112 | ||||||||||||
Total consumer loans | 648,161 | 25,352 | 21,416 | 694,929 | ||||||||||||
Total gross loans | $ | 6,434,133 | $ | 559,571 | $ | 36,617 | $ | 7,030,321 |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | ||||||
Loans modified in TDRs: | ||||||||
Commercial loans: | ||||||||
Software | $ | 2,459 | $ | 1,142 | ||||
Hardware | 12,193 | 5,183 | ||||||
Premium wine | 1,971 | 1,949 | ||||||
Other | 3,281 | 4,934 | ||||||
Total commercial loans | 19,904 | 13,208 | ||||||
Consumer loans: | ||||||||
Real estate secured loans | 2,363 | 17,934 | ||||||
Other consumer loans | 1,220 | 3,133 | ||||||
Total consumer loans | 3,583 | 21,067 | ||||||
Total | $ | 23,487 | $ | 34,275 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Loans modified in TDRs during the period: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 1,969 | $ | 381 | $ | 1,969 | $ | 941 | ||||||||
Hardware | — | 801 | 11,677 | 2,674 | ||||||||||||
Premium wine | — | — | 156 | 1,993 | ||||||||||||
Other | — | 2,247 | 2,237 | 2,247 | ||||||||||||
Total commercial loans | 1,969 | 3,429 | 16,039 | 7,855 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | — | — | 392 | — | ||||||||||||
Other consumer loans | — | — | — | 3,322 | ||||||||||||
Total consumer loans | — | — | 392 | 3,322 | ||||||||||||
Total loans modified in TDR’s during the period (1) | $ | 1,969 | $ | 3,429 | $ | 16,431 | $ | 11,177 |
(1) | During the three and nine months ended September 30, 2012, we had partial charge-offs of $1.1 million and $11.0 million, respectively, on loans classified as TDRs. There were $0.6 million partial charge-offs on loans classified as TDRs during the three and nine months ended September 30, 2011. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
TDRs modified within the previous 12 months that defaulted during the period: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | — | $ | 64 | $ | — | $ | 64 | ||||||||
Hardware | 515 | 1,206 | 515 | 3,079 | ||||||||||||
Premium wine | — | 1,993 | — | 1,993 | ||||||||||||
Total commercial loans | 515 | 3,263 | 515 | 5,136 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | 120 | — | 120 | — | ||||||||||||
Other consumer loans | — | 3,322 | — | 3,322 | ||||||||||||
Total consumer loans | 120 | 3,322 | 120 | 3,322 | ||||||||||||
Total TDRs modified within the previous 12 months that defaulted in the period | $ | 635 | $ | 6,585 | $ | 635 | $ | 8,458 |
7. | Short-Term Borrowings and Long-Term Debt |
Carrying Value | ||||||||||||||
(Dollars in thousands) | Maturity | Principal value at September 30, 2012 | September 30, 2012 | December 31, 2011 | ||||||||||
Short-term borrowings: | ||||||||||||||
Short-term FHLB advances | October 1, 2012 | $ | 215,000 | $ | 215,000 | $ | — | |||||||
Federal funds purchased | October 1, 2012 | 287,000 | 287,000 | — | ||||||||||
Other short-term borrowings | (1) | 6,170 | 6,170 | — | ||||||||||
Total short-term borrowings | $ | 508,170 | $ | — | ||||||||||
Long-term debt: | ||||||||||||||
5.375% Senior Notes | September 15, 2020 | $ | 350,000 | $ | 347,944 | $ | 347,793 | |||||||
5.70% Senior Notes (2) | June 1, 2012 | — | — | 143,969 | ||||||||||
6.05% Subordinated Notes (3) | June 1, 2017 | 45,964 | 55,130 | 55,075 | ||||||||||
7.0% Junior Subordinated Debentures | October 15, 2033 | 50,000 | 55,240 | 55,372 | ||||||||||
Other long-term debt | (4) | — | — | 1,439 | ||||||||||
Total long-term debt | $ | 458,314 | $ | 603,648 |
(1) | Represents cash collateral received from our counterparty for our interest rate swap agreement related to our 6.05% Subordinated Notes. |
(2) | At December 31, 2011, included in the carrying value of our 5.70% Senior Notes was $2.6 million related to the fair value of the interest rate swap associated with the notes. |
(3) | At September 30, 2012 and December 31, 2011, included in the carrying value of our 6.05% Subordinated Notes were $9.5 million and $8.8 million, respectively, related to the fair value of the interest rate swap associated with the notes. |
(4) | Represents long-term notes payable related to one of our debt fund investments. The last payment related to the notes was made in April 2012. |
8. | Derivative Financial Instruments |
September 30, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance Sheet Location | Notional or Contractual Amount | Fair Value | Collateral (1) | Net Exposure (2) | Notional or Contractual Amount | Fair Value | Collateral (1) | Net Exposure (2) | |||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||
Interest rate risks: | ||||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | 45,964 | $ | 9,508 | $ | 6,170 | $ | 3,338 | $ | 187,393 | $ | 11,441 | $ | — | $ | 11,441 | |||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||||||||||||||||||
Foreign exchange forwards | Other assets | 23,441 | 548 | — | 548 | 68,518 | 514 | — | 514 | |||||||||||||||||||||||||
Foreign exchange forwards | Other liabilities | 38,593 | (1,373 | ) | — | (1,373 | ) | 6,822 | (199 | ) | — | (199 | ) | |||||||||||||||||||||
Net exposure | (825 | ) | — | (825 | ) | 315 | — | 315 | ||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||
Equity warrant assets | Other assets | 162,471 | 70,478 | — | 70,478 | 144,586 | 66,953 | — | 66,953 | |||||||||||||||||||||||||
Other derivatives: | ||||||||||||||||||||||||||||||||||
Foreign exchange forwards | Other assets | 419,005 | 11,581 | — | 11,581 | 387,714 | 17,541 | — | 17,541 | |||||||||||||||||||||||||
Foreign exchange forwards | Other liabilities | 393,426 | (10,116 | ) | — | (10,116 | ) | 366,835 | (16,346 | ) | — | (16,346 | ) | |||||||||||||||||||||
Foreign currency options | Other assets | 127,379 | 987 | — | 987 | 75,600 | 271 | — | 271 | |||||||||||||||||||||||||
Foreign currency options | Other liabilities | 127,379 | (987 | ) | — | (987 | ) | 75,600 | (271 | ) | — | (271 | ) | |||||||||||||||||||||
Loan conversion options | Other assets | 9,778 | 1,240 | — | 1,240 | 14,063 | 923 | — | 923 | |||||||||||||||||||||||||
Client interest rate derivatives | Other assets | 62,120 | 236 | — | 236 | 39,713 | 50 | — | 50 | |||||||||||||||||||||||||
Client interest rate derivatives | Other liabilities | 62,120 | (247 | ) | — | (247 | ) | 39,713 | (52 | ) | — | (52 | ) | |||||||||||||||||||||
Net exposure | 2,694 | — | 2,694 | 2,116 | — | 2,116 | ||||||||||||||||||||||||||||
Net | $ | 81,855 | $ | 6,170 | $ | 75,685 | $ | 80,825 | $ | — | $ | 80,825 |
(1) | Cash collateral received from our counterparty for our interest rate swap agreement is recorded as a component of “short-term borrowings” on our consolidated balance sheets. |
(2) | Net exposure for contracts in a gain position reflects the replacement cost in the event of nonperformance by all such counterparties. The credit ratings of our institutional counterparties as of September 30, 2012 remain at investment grade or higher and there were no material changes in their credit ratings for the three and nine months ended September 30, 2012. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
(Dollars in thousands) | Statement of income location | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest rate risks: | ||||||||||||||||||
Net cash benefit associated with interest rate swaps | Interest expense—borrowings | $ | 612 | $ | 2,337 | $ | 4,537 | $ | 12,205 | |||||||||
Changes in fair value of interest rate swaps | Net gains on derivative instruments | 74 | (400 | ) | 571 | (467 | ) | |||||||||||
Net gains associated with interest rate risk derivatives | $ | 686 | $ | 1,937 | $ | 5,108 | $ | 11,738 | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||
Gains (losses) on revaluations of foreign currency instruments | Other noninterest income | $ | 1,578 | $ | (3,931 | ) | $ | 96 | $ | (733 | ) | |||||||
Gains on internal foreign exchange forward contracts, net | Net gains on derivative instruments | 220 | 3,591 | 1,162 | 540 | |||||||||||||
Net gains (losses) associated with currency risk | $ | 1,798 | $ | (340 | ) | $ | 1,258 | $ | (193 | ) | ||||||||
Other derivative instruments: | ||||||||||||||||||
Gains on equity warrant assets | Net gains on derivative instruments | $ | 547 | $ | 5,518 | $ | 12,358 | $ | 23,375 | |||||||||
Gains on client foreign exchange forward contracts, net | Net gains on derivative instruments | $ | 607 | $ | 658 | $ | 3,002 | $ | 1,448 | |||||||||
Net (losses) gains on other derivatives (1) | Net gains on derivative instruments | $ | (337 | ) | $ | 584 | $ | (1,293 | ) | $ | (743 | ) |
(1) | Primarily represents the change in fair value of loan conversion options. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Unused commitment fees | $ | 2,579 | $ | 1,900 | $ | 9,312 | $ | 5,194 | ||||||||
Fund management fees | 2,496 | 2,671 | 8,448 | 8,022 | ||||||||||||
Service-based fee income | 1,651 | 2,339 | 6,197 | 7,151 | ||||||||||||
Net gains on the sale of certain assets related to our equity management services business | — | — | 4,243 | — | ||||||||||||
Loan syndication fees | 1,353 | 50 | 2,853 | 920 | ||||||||||||
Gains (losses) on revaluation of foreign currency instruments (1) | 1,578 | (3,931 | ) | 96 | (733 | ) | ||||||||||
Currency revaluation gains (losses) (2) | 845 | (1,551 | ) | (88 | ) | (2,672 | ) | |||||||||
Other | 2,921 | 1,630 | 8,104 | 5,502 | ||||||||||||
Total other noninterest income | $ | 13,423 | $ | 3,108 | $ | 39,165 | $ | 23,384 |
(1) | Represents the revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash. |
(2) | Represents the revaluation of foreign currency denominated financial statements of certain funds. Included in these amounts are gains of $0.8 million and losses of $3 thousand for the three and nine months ended September 30, 2012, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests. This compares to losses of $1.7 million and $1.6 million for the comparable 2011 periods. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Telephone | $ | 1,619 | $ | 1,610 | $ | 4,950 | $ | 4,376 | ||||||||
Client services | 1,804 | 1,289 | 4,796 | 3,128 | ||||||||||||
Data processing services | 1,575 | 1,097 | 4,290 | 3,589 | ||||||||||||
Tax credit fund amortization | 941 | 1,212 | 2,961 | 3,366 | ||||||||||||
Postage and supplies | 591 | 641 | 1,844 | 1,725 | ||||||||||||
Dues and publications | 472 | 465 | 1,503 | 1,166 | ||||||||||||
Net gain from note repurchases and termination of corresponding interest rate swaps | — | — | — | (3,123 | ) | |||||||||||
Other | 1,961 | 3,240 | 5,844 | 8,226 | ||||||||||||
Total other noninterest expense | $ | 8,963 | $ | 9,554 | $ | 26,188 | $ | 22,453 |
10. | Segment Reporting |
• | Global Commercial Bank provides solutions to the financial needs of commercial clients through lending, deposit products, cash management services, and global banking and trade products and services. It also serves the needs of our non-U.S. clients with global banking products, including loans, deposits and global finance, in key foreign entrepreneurial markets, where applicable. Our Global Commercial Bank segment is comprised of results from our Commercial Bank, and also includes SVB Specialty Lending, SVB Analytics and our Debt Fund Investments. (For further description of these operating segments, refer to Note 20—“Segment Reporting” under Part II, Item 8 of our 2011 Form 10-K.) As a result of the change in FTP methodology discussed above, our Global Commercial Bank segment’s total net interest income for the three and nine months ended September 30, 2011 was increased by $18.6 million and $52.9 million, respectively (offset is included within “Other Items”), due to the reclassification of all prior periods to reflect the current period’s methodology and presentation. |
• | SVB Private Bank provides banking products and a range of credit services primarily to venture capital/private equity professionals using both long-term secured and short-term unsecured lines of credit. |
• | SVB Capital is the venture capital investment arm of SVBFG, which focuses primarily on funds management. SVB Capital manages funds (primarily venture capital funds) on behalf of third party limited partners and SVB Financial Group. The SVB Capital family of funds is comprised of funds of funds and direct venture funds. SVB Capital generates income for the Company primarily through management fees, carried interest arrangements and returns through the Company’s investments in the funds. |
(Dollars in thousands) | Global Commercial Bank (1) | SVB Private Bank | SVB Capital (1) | Other Items | Total | |||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||
Net interest income (loss) | $ | 151,858 | $ | 5,666 | $ | 6 | $ | (3,100 | ) | $ | 154,430 | |||||||||
(Provision for) reduction of loan losses | (7,787 | ) | 999 | — | — | (6,788 | ) | |||||||||||||
Noninterest income | 46,965 | 149 | 4,330 | 17,695 | 69,139 | |||||||||||||||
Noninterest expense (2) | (97,846 | ) | (3,749 | ) | (3,562 | ) | (30,014 | ) | (135,171 | ) | ||||||||||
Income (loss) before income tax expense (3) | $ | 93,190 | $ | 3,065 | $ | 774 | $ | (15,419 | ) | $ | 81,610 | |||||||||
Total average loans, net of unearned income | $ | 7,159,609 | $ | 755,001 | $ | — | $ | (7,004 | ) | $ | 7,907,606 | |||||||||
Total average assets (4) | 19,861,275 | 758,988 | 238,595 | 868,339 | 21,727,197 | |||||||||||||||
Total average deposits | 17,881,175 | 341,537 | — | 37,632 | 18,260,344 | |||||||||||||||
Three months ended September 30, 2011 | ||||||||||||||||||||
Net interest income (loss) | $ | 133,946 | $ | 5,513 | $ | 2 | $ | (4,006 | ) | $ | 135,455 | |||||||||
(Provision for) reduction of loan losses | (3,883 | ) | 3,114 | — | — | (769 | ) | |||||||||||||
Noninterest income | 39,189 | 128 | 9,873 | 46,421 | 95,611 | |||||||||||||||
Noninterest expense (2) | (92,350 | ) | (2,846 | ) | (3,860 | ) | (28,395 | ) | (127,451 | ) | ||||||||||
Income before income tax expense (3) | $ | 76,902 | $ | 5,909 | $ | 6,015 | $ | 14,020 | $ | 102,846 | ||||||||||
Total average loans, net of unearned income | $ | 5,263,448 | $ | 684,613 | $ | — | $ | 58,553 | $ | 6,006,614 | ||||||||||
Total average assets (4) | 17,347,197 | 685,308 | 238,949 | 525,056 | 18,796,510 | |||||||||||||||
Total average deposits | 15,573,886 | 200,547 | — | 29,603 | 15,804,036 | |||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Net interest income (loss) | $ | 441,542 | $ | 16,147 | $ | 22 | $ | (410 | ) | $ | 457,301 | |||||||||
(Provision for) reduction of loan losses | (29,946 | ) | 630 | — | — | (29,316 | ) | |||||||||||||
Noninterest income | 139,387 | 457 | 12,474 | 56,540 | 208,858 | |||||||||||||||
Noninterest expense (2) | (292,580 | ) | (10,338 | ) | (8,970 | ) | (91,061 | ) | (402,949 | ) | ||||||||||
Income (loss) before income tax expense (3) | $ | 258,403 | $ | 6,896 | $ | 3,526 | $ | (34,931 | ) | $ | 233,894 | |||||||||
Total average loans, net of unearned income | $ | 6,559,036 | $ | 745,069 | $ | — | $ | 14,432 | $ | 7,318,537 | ||||||||||
Total average assets (4) | 19,149,952 | 749,500 | 243,124 | 810,465 | 20,953,041 | |||||||||||||||
Total average deposits | 17,240,715 | 278,736 | — | 27,743 | 17,547,194 | |||||||||||||||
Nine months ended September 30, 2011 | ||||||||||||||||||||
Net interest income (loss) | $ | 380,461 | $ | 14,567 | $ | 6 | $ | (8,827 | ) | $ | 386,207 | |||||||||
(Provision for) reduction of loan losses | (3,222 | ) | 5,366 | — | — | 2,144 | ||||||||||||||
Noninterest income | 110,604 | 351 | 23,879 | 174,439 | 309,273 | |||||||||||||||
Noninterest expense (2) | (262,932 | ) | (7,326 | ) | (10,113 | ) | (85,547 | ) | (365,918 | ) | ||||||||||
Income before income tax expense (3) | $ | 224,911 | $ | 12,958 | $ | 13,772 | $ | 80,065 | $ | 331,706 | ||||||||||
Total average loans, net of unearned income | $ | 4,933,707 | $ | 637,443 | $ | — | $ | 48,559 | $ | 5,619,709 | ||||||||||
Total average assets (4) | 16,788,462 | 637,854 | 225,041 | 685,491 | 18,336,848 | |||||||||||||||
Total average deposits | 15,063,215 | 169,368 | — | 18,355 | 15,250,938 |
(1) | Global Commercial Bank’s and SVB Capital’s components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. |
(2) | The Global Commercial Bank segment includes direct depreciation and amortization of $4.5 million and $3.1 million for the three months ended September 30, 2012 and 2011, respectively, and $11.6 million and $8.7 million for the nine months ended September 30, 2012 and 2011, respectively. |
(3) | The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates. |
(4) | Total average assets equals the greater of total average assets or the sum of total liabilities and total stockholders’ equity for each segment. |
11. | Off-Balance Sheet Arrangements, Guarantees and Other Commitments |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | ||||||
Loan commitments available for funding: (1) | ||||||||
Fixed interest rate commitments | $ | 855,885 | $ | 658,377 | ||||
Variable interest rate commitments | 6,965,078 | 6,548,002 | ||||||
Total loan commitments available for funding | 7,820,963 | 7,206,379 | ||||||
Commercial and standby letters of credit (2) | 889,265 | 861,191 | ||||||
Total unfunded credit commitments | $ | 8,710,228 | $ | 8,067,570 | ||||
Commitments unavailable for funding (3) | $ | 994,888 | $ | 841,439 | ||||
Maximum lending limits for accounts receivable factoring arrangements (4) | 888,463 | 747,392 | ||||||
Reserve for unfunded credit commitments (5) | 23,075 | 21,811 |
(1) | Represents commitments which are available for funding, due to clients meeting all collateral, compliance and financial covenants required under loan commitment agreements. |
(2) | See below for additional information on our commercial and standby letters of credit. |
(3) | Represents commitments which are currently unavailable for funding, due to clients failing to meet all collateral, compliance and financial covenants under loan commitment agreements. |
(4) | We extend credit under accounts receivable factoring arrangements when our clients’ sales invoices are deemed creditworthy under existing underwriting practices. |
(5) | Our reserve for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit. |
(Dollars in thousands) | Expires In One Year or Less | Expires After One Year | Total Amount Outstanding | Maximum Amount of Future Payments | ||||||||||||
Financial standby letters of credit | $ | 696,922 | $ | 60,234 | $ | 757,156 | $ | 757,156 | ||||||||
Performance standby letters of credit | 63,336 | 11,677 | 75,013 | 75,013 | ||||||||||||
Commercial letters of credit | 57,096 | — | 57,096 | 57,096 | ||||||||||||
Total | $ | 817,354 | $ | 71,911 | $ | 889,265 | $ | 889,265 |
Our Ownership in Limited Partnership (Dollars in thousands) | SVBFG Capital Commitments | SVBFG Unfunded Commitments | SVBFG Ownership of each Fund | ||||||||
Silicon Valley BancVentures, LP | $ | 6,000 | $ | 270 | 10.7 | % | |||||
SVB Capital Partners II, LP (1) | 1,200 | 162 | 5.1 | ||||||||
SVB India Capital Partners I, LP | 7,750 | 1,015 | 14.4 | ||||||||
SVB Capital Shanghai Yangpu Venture Capital Fund | 923 | 159 | 6.8 | ||||||||
SVB Strategic Investors Fund, LP | 15,300 | 688 | 12.6 | ||||||||
SVB Strategic Investors Fund II, LP | 15,000 | 1,200 | 8.6 | ||||||||
SVB Strategic Investors Fund III, LP | 15,000 | 2,700 | 5.9 | ||||||||
SVB Strategic Investors Fund IV, LP | 12,239 | 4,284 | 5.0 | ||||||||
Strategic Investors Fund V Funds | 1,000 | 833 | Various | ||||||||
SVB Capital Preferred Return Fund, LP | 12,687 | — | 20.0 | ||||||||
SVB Capital—NT Growth Partners, LP | 24,670 | 1,340 | 33.0 | ||||||||
Other private equity fund (2) | 9,338 | — | 58.2 | ||||||||
Partners for Growth, LP | 25,000 | 9,750 | 50.0 | ||||||||
Partners for Growth II, LP | 15,000 | 4,950 | 24.2 | ||||||||
Gold Hill Venture Lending 03, LP (3) | 20,000 | — | 9.3 | ||||||||
Other fund investments (4) | 331,902 | 64,435 | Various | ||||||||
Total | $ | 513,009 | $ | 91,786 |
(1) | Our ownership includes 1.3 percent direct ownership through SVB Capital Partners II, LLC and SVB Financial, and 3.8 percent indirect ownership through our investment in SVB Strategic Investors Fund II, LP. |
(2) | Our ownership includes 41.5 percent direct ownership and indirect ownership interest of 12.6 percent and 4.1 percent in the fund through our ownership interest of SVB Capital - NT Growth Partners, LP and SVB Capital Preferred Return Fund, LP, respectively. |
(3) | Our ownership includes 4.8 percent direct ownership and 4.5 percent indirect ownership interest through GHLLC. |
(4) | Represents commitments to 331 funds (primarily venture capital funds) where our ownership interest is generally less than 5 percent of the voting interests of each such fund. |
Limited Partnership (Dollars in thousands) | Unfunded Commitments | ||
SVB Strategic Investors Fund, LP | $ | 2,307 | |
SVB Strategic Investors Fund II, LP | 10,345 | ||
SVB Strategic Investors Fund III, LP | 43,865 | ||
SVB Strategic Investors Fund IV, LP | 102,650 | ||
Strategic Investors Fund V Funds | 230,629 | ||
SVB Capital Preferred Return Fund, LP | 17,688 | ||
SVB Capital—NT Growth Partners, LP | 18,867 | ||
Other private equity fund | 4,447 | ||
Total | $ | 430,798 |
12. | Income Taxes |
13. | Fair Value of Financial Instruments |
(Dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of September 30, 2012 | ||||||||||||
Assets | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. treasury securities | $ | — | $ | 25,429 | $ | — | $ | 25,429 | ||||||||
U.S. agency debentures | — | 2,936,150 | — | 2,936,150 | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | — | 1,590,582 | — | 1,590,582 | ||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate | — | 4,168,125 | — | 4,168,125 | ||||||||||||
Agency-issued collateralized mortgage obligations - variable rate | — | 1,939,799 | — | 1,939,799 | ||||||||||||
Agency-issued commercial mortgage-backed securities | — | 279,507 | — | 279,507 | ||||||||||||
Municipal bonds and notes | — | 100,221 | — | 100,221 | ||||||||||||
Equity securities | 7,917 | — | — | 7,917 | ||||||||||||
Total available-for-sale securities | 7,917 | 11,039,813 | — | 11,047,730 | ||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Venture capital and private equity fund investments | — | — | 658,409 | 658,409 | ||||||||||||
Other venture capital investments | — | — | 118,622 | 118,622 | ||||||||||||
Total non-marketable securities (fair value accounting) | — | — | 777,031 | 777,031 | ||||||||||||
Other assets: | ||||||||||||||||
Marketable securities | 3,807 | 1,609 | — | 5,416 | ||||||||||||
Interest rate swaps | — | 9,508 | — | 9,508 | ||||||||||||
Foreign exchange forward and option contracts | — | 13,116 | — | 13,116 | ||||||||||||
Equity warrant assets | — | 5,787 | 64,691 | 70,478 | ||||||||||||
Loan conversion options | — | 1,240 | — | 1,240 | ||||||||||||
Client interest rate derivatives | — | 236 | — | 236 | ||||||||||||
Total assets (1) | $ | 11,724 | $ | 11,071,309 | $ | 841,722 | $ | 11,924,755 | ||||||||
Liabilities | ||||||||||||||||
Foreign exchange forward and option contracts | $ | — | $ | 12,476 | $ | — | $ | 12,476 | ||||||||
Client interest rate derivatives | — | 247 | — | 247 | ||||||||||||
Total liabilities | $ | — | $ | 12,723 | $ | — | $ | 12,723 |
(1) | Included in Level 1, Level 2, and Level 3 assets are $3.4 million, $1.5 million, and $689.6 million, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests. |
(Dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2011 | ||||||||||||
Assets | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. treasury securities | $ | — | $ | 25,964 | $ | — | $ | 25,964 | ||||||||
U.S. agency debentures | — | 2,874,932 | — | 2,874,932 | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | — | 1,564,286 | — | 1,564,286 | ||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate | — | 3,373,760 | — | 3,373,760 | ||||||||||||
Agency-issued collateralized mortgage obligations - variable rate | — | 2,413,378 | — | 2,413,378 | ||||||||||||
Agency-issued commercial mortgage-backed securities | — | 178,693 | — | 178,693 | ||||||||||||
Municipal bonds and notes | — | 100,498 | — | 100,498 | ||||||||||||
Equity securities | 4,535 | — | — | 4,535 | ||||||||||||
Total available-for-sale securities | 4,535 | 10,531,511 | — | 10,536,046 | ||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Venture capital and private equity fund investments | — | — | 611,824 | 611,824 | ||||||||||||
Other venture capital investments | — | — | 124,121 | 124,121 | ||||||||||||
Other investments | — | — | 987 | 987 | ||||||||||||
Total non-marketable securities (fair value accounting) | — | — | 736,932 | 736,932 | ||||||||||||
Other assets: | ||||||||||||||||
Marketable securities | 1,410 | — | — | 1,410 | ||||||||||||
Interest rate swaps | — | 11,441 | — | 11,441 | ||||||||||||
Foreign exchange forward and option contracts | — | 18,326 | — | 18,326 | ||||||||||||
Equity warrant assets | — | 3,923 | 63,030 | 66,953 | ||||||||||||
Loan conversion options | — | 923 | — | 923 | ||||||||||||
Client interest rate derivatives | — | 50 | — | 50 | ||||||||||||
Total assets (1) | $ | 5,945 | $ | 10,566,174 | $ | 799,962 | $ | 11,372,081 | ||||||||
Liabilities | ||||||||||||||||
Foreign exchange forward and option contracts | $ | — | $ | 16,816 | $ | — | $ | 16,816 | ||||||||
Client interest rate derivatives | — | 52 | — | 52 | ||||||||||||
Total liabilities | $ | — | $ | 16,868 | $ | — | $ | 16,868 |
(1) | Included in Level 1 and Level 3 assets are $1.2 million and $647.5 million, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests. |
(Dollars in thousands) | Beginning Balance | Total Realized and Unrealized Gains (Losses) Included in Income | Purchases | Sales | Issuances | Distributions and Other Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Ending Balance | |||||||||||||||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments | $ | 639,596 | $ | 12,104 | $ | 35,092 | $ | — | $ | — | $ | (28,383 | ) | $ | — | $ | — | $ | 658,409 | |||||||||||||||||
Other venture capital investments | 120,111 | 3,259 | 953 | (5,202 | ) | — | 479 | — | (978 | ) | 118,622 | |||||||||||||||||||||||||
Total non-marketable securities (fair value accounting) (1) | 759,707 | 15,363 | 36,045 | (5,202 | ) | — | (27,904 | ) | — | (978 | ) | 777,031 | ||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 68,619 | (800 | ) | — | (5,954 | ) | 2,994 | — | — | (168 | ) | 64,691 | ||||||||||||||||||||||||
Total assets | $ | 828,326 | $ | 14,563 | $ | 36,045 | $ | (11,156 | ) | $ | 2,994 | $ | (27,904 | ) | $ | — | $ | (1,146 | ) | $ | 841,722 | |||||||||||||||
Three months ended September 30, 2011 | ||||||||||||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments | $ | 515,118 | $ | 32,041 | $ | 42,590 | $ | — | $ | — | $ | (11,623 | ) | $ | — | $ | — | $ | 578,126 | |||||||||||||||||
Other venture capital investments | 114,070 | 17,237 | 2,193 | (9,335 | ) | — | (4,005 | ) | — | — | 120,160 | |||||||||||||||||||||||||
Other investments | 995 | (16 | ) | — | — | — | (6 | ) | — | — | 973 | |||||||||||||||||||||||||
Total non-marketable securities (fair value accounting) (1) | 630,183 | 49,262 | 44,783 | (9,335 | ) | — | (15,634 | ) | — | — | 699,259 | |||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 49,777 | 8,192 | — | (6,427 | ) | 2,876 | — | — | — | 54,418 | ||||||||||||||||||||||||||
Total assets | $ | 679,960 | $ | 57,454 | $ | 44,783 | $ | (15,762 | ) | $ | 2,876 | $ | (15,634 | ) | $ | — | $ | — | $ | 753,677 | ||||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments | $ | 611,824 | $ | 38,765 | $ | 90,173 | $ | — | $ | — | $ | (82,353 | ) | $ | — | $ | — | $ | 658,409 | |||||||||||||||||
Other venture capital investments | 124,121 | (3,868 | ) | 8,888 | (9,441 | ) | — | 495 | — | (1,573 | ) | 118,622 | ||||||||||||||||||||||||
Other investments | 987 | 21 | — | — | — | (1,008 | ) | — | — | — | ||||||||||||||||||||||||||
Total non-marketable securities (fair value accounting) (1) | 736,932 | 34,918 | 99,061 | (9,441 | ) | — | (82,866 | ) | — | (1,573 | ) | 777,031 | ||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 63,030 | 8,848 | — | (15,672 | ) | 9,167 | 1 | — | (683 | ) | 64,691 | |||||||||||||||||||||||||
Total assets | $ | 799,962 | $ | 43,766 | $ | 99,061 | $ | (25,113 | ) | $ | 9,167 | $ | (82,865 | ) | $ | — | $ | (2,256 | ) | $ | 841,722 | |||||||||||||||
Nine months ended September 30, 2011 | ||||||||||||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments | $ | 391,247 | $ | 108,032 | $ | 119,990 | $ | — | $ | — | $ | (41,143 | ) | $ | — | $ | — | $ | 578,126 | |||||||||||||||||
Other venture capital investments | 111,843 | 22,608 | 12,939 | (27,513 | ) | — | 283 | — | — | 120,160 | ||||||||||||||||||||||||||
Other investments | 981 | 4 | — | — | — | (12 | ) | — | — | 973 | ||||||||||||||||||||||||||
Total non-marketable securities (fair value accounting) (1) | 504,071 | 130,644 | 132,929 | (27,513 | ) | — | (40,872 | ) | — | — | 699,259 | |||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 43,537 | 21,403 | — | (19,889 | ) | 10,058 | (63 | ) | — | (628 | ) | 54,418 | ||||||||||||||||||||||||
Total assets | $ | 547,608 | $ | 152,047 | $ | 132,929 | $ | (47,402 | ) | $ | 10,058 | $ | (40,935 | ) | $ | — | $ | (628 | ) | $ | 753,677 |
(1) | Realized and unrealized gains (losses) are recorded on the line items “gains on investment securities, net”, and “other noninterest income”, components of noninterest income. |
(2) | Realized and unrealized gains (losses) are recorded on the line item “gains on derivative instruments, net”, a component of noninterest income. |
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | |||||||
Non-marketable securities (fair value accounting): | ||||||||
Venture capital and private equity fund investments (1) | $ | 12,724 | $ | 38,916 | ||||
Other venture capital investments | (963 | ) | 4,177 | |||||
Total non-marketable securities (fair value accounting) (2) | 11,761 | 43,093 | ||||||
Other assets: | ||||||||
Equity warrant assets (3) | (2,480 | ) | (2,505 | ) | ||||
Total unrealized gains | $ | 9,281 | $ | 40,588 | ||||
Unrealized gains attributable to noncontrolling interests (1) | $ | 9,543 | $ | 37,445 |
(1) | In the third quarter of 2012, for purposes of this disclosure we have revised our methodology to exclude reclassifications of previously recorded unrealized gains (losses) as a result of distributions. |
(2) | Unrealized gains (losses) are recorded on the line items “gains on investment securities, net”, and “other noninterest income”, components of noninterest income. |
(3) | Unrealized (losses) gains are recorded on the line item “gains on derivative instruments, net”, a component of noninterest income. |
(Dollars in thousands) | Fair value at September 30, 2012 | Valuation Technique | Significant Unobservable Inputs | Weighted Average | |||||||
Other venture capital investments (fair value accounting) | $ | 118,622 | Private company equity pricing | (1) | (1) | ||||||
Equity warrant assets (private portfolio) | 64,691 | Modifed Black-Scholes option pricing model | Volatility | 49.8 | % | ||||||
Risk-Free interest rate | 0.3 | % | |||||||||
Marketability discount (2) | 22.5 | % | |||||||||
Remaining life assumption (3) | 45.0 | % |
(1) | In determining the fair value of our other venture capital investment portfolio, we evaluate a variety of factors related to each underlying private portfolio company including, but not limited to, actual and forecasted results, cash position, recent or planned transactions and market comparable companies. Additionally, we have ongoing communication with the portfolio companies and venture capital fund managers, to determine whether there is a material change in fair value. These factors are specific to each portfolio company and a weighted average or range of values of the unobservable inputs is not meaningful. |
(2) | Our marketability discount is applied to all private company warrants to account for a general lack of liquidity due to the private nature of the associated underlying company. The quantitative measure used is based on long-run averages and is influenced over time by various factors, including market conditions. On a quarterly basis, a sensitivity analysis is performed on our marketability discount. In the third quarter of 2012, we increased the marketability discount from 15.0 percent to 22.5 percent to reflect market conditions and trends. |
(3) | We adjust the contractual remaining term of private company warrants based on our best estimate of the actual remaining life, which we determine by utilizing historical data on cancellations and exercises. At September 30, 2012, the weighted average contractual remaining term was 6.6 years, compared to our estimated remaining life of 3.0 years. On a quarterly basis, a sensitivity analysis is performed on our remaining life assumption. In the third quarter of 2012, we increased the remaining life assumption from 40.0 percent to 45.0 percent of the contractual term to reflect market conditions and trends. |
Estimated Fair Value | ||||||||||||||||
(Dollars in thousands) | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
September 30, 2012: | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 906,680 | $ | 906,680 | $ | — | $ | — | ||||||||
Non-marketable securities (cost and equity method accounting) | 386,784 | — | — | 421,123 | ||||||||||||
Net commercial loans | 7,345,239 | — | — | 7,542,349 | ||||||||||||
Net consumer loans | 745,606 | — | — | 766,903 | ||||||||||||
FHLB and FRB stock | 39,301 | — | — | 39,301 | ||||||||||||
Accrued interest receivable | 62,441 | — | 62,441 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Short-term FHLB advances | 215,000 | 215,000 | — | — | ||||||||||||
Federal funds purchased | 287,000 | 287,000 | — | — | ||||||||||||
Other short-term borrowings | 6,170 | 6,170 | — | — | ||||||||||||
Non-maturity deposits (1) | 17,575,816 | 17,575,816 | — | — | ||||||||||||
Time deposits | 149,250 | — | 149,031 | — | ||||||||||||
5.375% Senior Notes | 347,944 | — | 398,220 | — | ||||||||||||
6.05% Subordinated Notes (2) | 55,130 | — | 62,486 | — | ||||||||||||
7.0% Junior Subordinated Debentures | 55,240 | — | 52,268 | — | ||||||||||||
Accrued interest payable | 1,938 | — | 1,938 | — | ||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||
Commitments to extend credit | — | — | — | 21,467 | ||||||||||||
December 31, 2011: | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,114,948 | $ | 1,114,948 | $ | — | $ | — | ||||||||
Non-marketable securities (cost and equity method accounting) | 267,508 | — | — | 290,393 | ||||||||||||
Net commercial loans | 6,192,578 | — | — | 6,336,705 | ||||||||||||
Net consumer loans | 687,557 | — | — | 627,733 | ||||||||||||
FHLB and FRB stock | 39,189 | — | — | 39,189 | ||||||||||||
Accrued interest receivable | 58,108 | — | 58,108 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-maturity deposits (1) | 16,553,787 | 16,553,787 | — | — | ||||||||||||
Time deposits | 155,749 | — | 155,346 | — | ||||||||||||
5.375% Senior Notes | 347,793 | — | 362,786 | — | ||||||||||||
6.05% Subordinated Notes (2) | 55,075 | — | 57,746 | — | ||||||||||||
5.70% Senior Notes (3) | 143,969 | — | 145,184 | — | ||||||||||||
7.0% Junior Subordinated Debentures | 55,372 | — | 51,526 | — | ||||||||||||
Other long-term debt | 1,439 | — | — | 1,439 | ||||||||||||
Accrued interest payable | 6,689 | — | 6,689 | — | ||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||
Commitments to extend credit | — | — | — | 21,232 |
(1) | Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits. |
(2) | At September 30, 2012 and December 31, 2011, included in the carrying value and estimated fair value of our 6.05% Subordinated Notes was $9.5 million and $8.8 million, respectively, related to the fair value of the interest rate swap associated with the notes. |
(3) | At December 31, 2011, included in the carrying value and estimated fair value of our 5.70% Senior Notes was $2.6 million related to the fair value of the interest rate swap associated with the notes. |
(Dollars in thousands) | Carrying Amount | Fair Value | Unfunded Commitments | |||||||||
Non-marketable securities (fair value accounting): | ||||||||||||
Venture capital and private equity fund investments (1) | $ | 658,409 | $ | 658,409 | $ | 430,798 | ||||||
Non-marketable securities (equity method accounting): | ||||||||||||
Other investments (2) | 54,288 | 55,715 | 6,750 | |||||||||
Non-marketable securities (cost method accounting): | ||||||||||||
Venture capital and private equity fund investments (3) | 158,275 | 190,033 | 60,809 | |||||||||
Total | $ | 870,972 | $ | 904,157 | $ | 498,357 |
(1) | Venture capital and private equity fund investments within non-marketable securities (fair value accounting) include investments made by our managed funds of funds, one of our direct venture funds and one other private equity fund. These investments represent investments in venture capital and private equity funds that invest primarily in U.S. and global technology and life sciences companies. Included in the fair value and unfunded commitments of fund investments under fair value accounting are $581.9 million and $420.0 million, respectively, attributable to noncontrolling interests. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of terms of the funds. |
(2) | Other investments within non-marketable securities (equity method accounting) include investments in debt funds and venture capital and private equity fund investments that invest in or lend money to primarily U.S. and global technology and life sciences companies. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds. |
(3) | Venture capital and private equity fund investments within non-marketable securities (cost method accounting) include investments in venture capital and private equity fund investments that invest primarily in U.S. and global technology and life sciences companies. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of the terms of the funds. |
14. | Legal Matters |
15. | Related Parties |
16. | Subsequent Events |
• | Projections of our net interest income, noninterest income, earnings per share, noninterest expenses (including professional services, compliance, compensation and other costs), cash flows, balance sheet positions, capital expenditures, liquidity and capitalization or other financial items |
• | Descriptions of our strategic initiatives, plans or objectives for future operations, including pending sales or acquisitions |
• | Forecasts of venture capital/private equity funding and investment levels |
• | Forecasts of future interest rates, economic performance, and income from investments |
• | Forecasts of expected levels of provisions for loan losses, loan growth and client funds |
• | Descriptions of assumptions underlying or relating to any of the foregoing |
▪ | Market and economic conditions (including interest rate environment, and levels of public offerings, mergers/acquisitions and venture capital financing activities) and the associated impact on us |
▪ | The sufficiency of our capital, including sources of capital (such as funds generated through retained earnings) and the extent to which capital may be used or required |
▪ | The adequacy of our liquidity position, including sources of liquidity (such as funds generated through retained earnings) |
▪ | The adequacy of our liquidity position, including sources of liquidity (such as funds generated through retained earnings) |
▪ | The realization, timing, valuation and performance of equity or other investments |
▪ | The likelihood that the market value of our impaired investments will recover |
▪ | Our intent to sell our investment securities prior to recovery of our cost basis, or the likelihood of such |
▪ | Expected cash requirements for unfunded commitments to certain investments, including capital calls |
▪ | Our overall management of interest rate risk, including managing the sensitivity of our interest-earning assets and interest-bearing liabilities to interest rates, and the impact to earnings from a change in interest rates |
▪ | The credit quality of our loan portfolio, including levels and trends of nonperforming loans, impaired loans, criticized loans and troubled debt restructurings |
▪ | The adequacy of reserves (including allowance for loan and lease losses) and the appropriateness of our methodology for calculating such reserves |
▪ | The level of loan and deposit balances |
▪ | The level of client investment fees and associated margins |
▪ | The profitability of our products and services |
▪ | Our strategic initiatives, including the expansion of operations in China, India, Israel, the UK and elsewhere (such as establishing our joint venture bank in China and a branch in the UK) |
▪ | The expansion and growth of our noninterest income sources |
▪ | Distributions of venture capital, private equity or debt fund investment proceeds; intentions to sell such fund investments |
▪ | The changes in, or adequacy of, our unrecognized tax benefits and any associated impact |
▪ | The impact from the IRS audit examination results |
▪ | The extent to which counterparties, including those to our forward and option contracts, will perform their contractual obligations |
▪ | The effect of application of certain accounting pronouncements |
▪ | The effect of lawsuits and claims |
▪ | Regulatory developments, including the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Act (as defined below), Basel guidelines, and other applicable laws and regulations |
▪ | Continued strong growth in our lending business with record high average loan balances of $7.9 billion, an increase of $1.9 billion, or 31.6 percent. |
▪ | A provision for loan losses of $6.8 million, primarily attributable to loan growth. Net charge-offs of $3.4 million (or 0.17 percent of average total gross loans-annualized) for the third quarter of 2012 reflects the strong overall credit quality of our portfolio. |
▪ | Average deposit balances of $18.3 billion, an increase of $2.5 billion, or 15.5 percent. Average total client funds |
▪ | Net interest income (fully taxable equivalent basis) of $154.9 million, an increase of $19.0 million, primarily due to an increase in interest income from loans mainly attributable to growth in average balances of $1.9 billion. These increases were partially offset by lower yields earned on our overall loan portfolio. |
▪ | Our net interest margin remained relatively flat at 3.12 percent, compared to 3.13 percent. Our net interest margin was impacted by decrease in the overall yield of our available-for-sale securities due to increased premium amortization expense from increasing prepayment rates on our mortgage-backed securities and a decrease in the yield of our loan portfolio. The decrease in yields was largely offset by strong growth in average loan balances, which has resulted in a favorable change in our mix of interest-earning assets. |
▪ | Core fee income (deposit service charges, letters of credit fees, credit card fees, client investment fees, and foreign exchange fees) of $34.4 million, an increase of $4.1 million, or 13.5 percent. This increase reflects increased client activity and continued growth in our business, primarily from credit card fees, client investments fees and foreign exchange fees. See “Results of Operations—Noninterest Income” for a description and reconciliation of core fee income. |
▪ | Gains on investment securities, net of noncontrolling interests, of $7.5 million, compared to $9.3 million. See “Results of Operations—Noninterest Income—Gains on Investment Securities, Net” for further details and a reconciliation of gains on investment securities, net of noncontrolling interests. |
▪ | Noninterest expense of $135.2 million, an increase of $7.7 million, or 6.1 percent. The increase was primarily due to increased premises and equipment and professional services expenses to support continued growth in our business and IT infrastructure initiatives. In addition, average full-time equivalent employees (“FTEs”) increased by 7.8 percent to 1,594 average FTEs, compared to 1,478 average FTEs, which contributed to an increase in salaries and wages expense. |
▪ | Overall, our liquidity remained strong based on our period end available-for-sale securities portfolio of $11.0 billion at September 30, 2012. Our available-for-sale securities portfolio continues to be a good source of liquidity as it is invested in high quality investments and generates substantial monthly cash flows. Additionally, our available-for-sale securities portfolio provides us the ability to secure wholesale borrowings, if needed. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
(Dollars in thousands, except per share data and ratios) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||||
Income Statement: | ||||||||||||||||||||||||
Diluted earnings per share | $ | 0.94 | $ | 0.86 | 9.3 | % | $ | 2.79 | $ | 3.12 | (10.6 | ) | % | |||||||||||
Net income available to common stockholders | 42,289 | 37,571 | 12.6 | 124,682 | 136,328 | (8.5 | ) | |||||||||||||||||
Net interest income | 154,430 | 135,455 | 14.0 | 457,301 | 386,207 | 18.4 | ||||||||||||||||||
Net interest margin | 3.12 | % | 3.13 | % | (1 | ) | bps | 3.21 | % | 3.07 | % | 14 | bps | |||||||||||
Provision for (reduction of) loan losses | $ | 6,788 | $ | 769 | NM | % | $ | 29,316 | $ | (2,144 | ) | NM | % | |||||||||||
Noninterest income | 69,139 | 95,611 | (27.7 | ) | 208,858 | 309,273 | (32.5 | ) | ||||||||||||||||
Noninterest expense | 135,171 | 127,451 | 6.1 | 402,949 | 365,918 | 10.1 | ||||||||||||||||||
Non-GAAP net income available to common stockholders (1) | 42,289 | 37,571 | 12.6 | 119,148 | 111,941 | 6.4 | ||||||||||||||||||
Non-GAAP diluted earnings per share (1) | 0.94 | 0.86 | 9.3 | 2.67 | 2.57 | 3.9 | ||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interest and excluding gains on sales of available-for-sale-securities (2) | 55,615 | 54,372 | 2.3 | 164,834 | 160,600 | 2.6 | ||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interest and excluding net gains from debt repurchases (3) | 132,448 | 124,685 | 6.2 | 393,461 | 360,173 | 9.2 | ||||||||||||||||||
Balance Sheet: | ||||||||||||||||||||||||
Average loans, net of unearned income | $ | 7,907,606 | $ | 6,006,614 | 31.6 | % | $ | 7,318,537 | $ | 5,619,709 | 30.2 | % | ||||||||||||
Average noninterest-bearing demand deposits | 12,914,697 | 10,634,757 | 21.4 | 12,403,438 | 9,783,426 | 26.8 | ||||||||||||||||||
Average interest-bearing deposits | 5,345,647 | 5,169,279 | 3.4 | 5,143,756 | 5,467,512 | (5.9 | ) | |||||||||||||||||
Average total deposits | 18,260,344 | 15,804,036 | 15.5 | 17,547,194 | 15,250,938 | 15.1 |
Earnings Ratios: | ||||||||||||||||||||||||
Return on average assets (annualized) (4) | 0.77 | % | 0.79 | % | (2.5 | ) | % | 0.79 | % | 0.99 | % | (20.2 | ) | % | ||||||||||
Return on average common SVBFG stockholders’ equity (annualized) (5) | 9.44 | 9.93 | (4.9 | ) | 9.77 | 12.95 | (24.6 | ) | ||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||
Allowance for loan losses as a percentage of total period-end gross loans | 1.23 | % | 1.34 | % | (11 | ) | bps | 1.23 | % | 1.34 | % | (11 | ) | bps | ||||||||||
Allowance for loan losses for performing loans as a percentage of total gross performing loans | 1.16 | 1.25 | (9 | ) | 1.16 | 1.25 | (9 | ) | ||||||||||||||||
Gross loan charge-offs as a percentage of average total gross loans (annualized) | 0.23 | 0.54 | (31 | ) | 0.47 | 0.40 | 7 | |||||||||||||||||
Net loan charge-offs (recoveries) as a percentage of average total gross loans (annualized) | 0.17 | (0.15 | ) | 32 | 0.32 | (0.11 | ) | 43 | ||||||||||||||||
Capital Ratios: | ||||||||||||||||||||||||
Total risk-based capital ratio (6) | 14.34 | % | 14.81 | % | (47 | ) | bps | 14.34 | % | 14.81 | % | (47 | ) | bps | ||||||||||
Tier 1 risk-based capital ratio (6) | 13.07 | 13.42 | (35 | ) | 13.07 | 13.42 | (35 | ) | ||||||||||||||||
Tier 1 leverage ratio | 8.02 | 8.01 | 1 | 8.02 | 8.01 | 1 | ||||||||||||||||||
Tangible common equity to tangible assets (7) | 8.27 | 8.00 | 27 | 8.27 | 8.00 | 27 | ||||||||||||||||||
Tangible common equity to risk-weighted assets (6) (7) | 13.93 | 14.21 | (28 | ) | 13.93 | 14.21 | (28 | ) | ||||||||||||||||
Bank total risk-based capital ratio (6) | 12.70 | 13.07 | (37 | ) | 12.70 | 13.07 | (37 | ) | ||||||||||||||||
Bank tier 1 risk-based capital ratio (6) | 11.41 | 11.63 | (22 | ) | 11.41 | 11.63 | (22 | ) | ||||||||||||||||
Bank tier 1 leverage ratio | 7.00 | 6.93 | 7 | 7.00 | 6.93 | 7 | ||||||||||||||||||
Bank tangible common equity to tangible assets (7) | 7.61 | 7.31 | 30 | 7.61 | 7.31 | 30 | ||||||||||||||||||
Bank tangible common equity to risk-weighted assets (6) (7) | 12.40 | 12.60 | (20 | ) | 12.40 | 12.60 | (20 | ) | ||||||||||||||||
Other Ratios: | ||||||||||||||||||||||||
Operating efficiency ratio (8) | 60.33 | % | 55.04 | % | 9.6 | % | 60.36 | % | 52.50 | % | 15.0 | % | ||||||||||||
Non-GAAP operating efficiency ratio (3) | 62.93 | % | 65.53 | % | (4.0 | ) | 63.11 | % | 65.70 | % | (3.9 | ) | ||||||||||||
Book value per common share (9) | $ | 40.10 | $ | 35.50 | 13.0 | $ | 40.10 | $ | 35.50 | 13.0 | ||||||||||||||
Other Statistics: | ||||||||||||||||||||||||
Average full-time equivalent employees | 1,594 | 1,478 | 7.8 | % | 1,572 | 1,428 | 10.1 | % | ||||||||||||||||
Period-end full-time equivalent employees | 1,602 | 1,504 | 6.5 | 1,602 | 1,504 | 6.5 |
(1) | See "Non-GAAP Net Income and Non-GAAP Diluted Earnings Per Common Share” for a description and reconciliation of non-GAAP net income available to common stockholders and non-GAAP diluted earnings per share. |
(2) | See “Results of Operations–Noninterest Income” for a description and reconciliation of non-GAAP noninterest income. |
(3) | See “Results of Operations–Noninterest Expense” for a description and reconciliation of non-GAAP noninterest expense and non-GAAP operating efficiency ratio. |
(4) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average assets. |
(5) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average SVBFG stockholders’ equity. |
(6) | Our risk-weighted assets at September 30, 2012 reflect a refinement in our determination of certain unfunded credit commitments related to the contractual borrowing base. |
(7) | See “Capital Resources–Capital Ratios” for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets. |
(8) | The operating efficiency ratio is calculated by dividing total noninterest expense by total taxable-equivalent net interest income plus noninterest income. |
(9) | Book value per common share is calculated by dividing total SVBFG stockholders’ equity by total outstanding common shares at period-end. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands, except per share data and ratios) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income available to common stockholders | $ | 42,289 | $ | 37,571 | $ | 124,682 | $ | 136,328 | ||||||||
Less: gains on sales of available-for-sale securities (1) | — | — | (4,955 | ) | (37,314 | ) | ||||||||||
Tax impact of gains on sales of available-for-sale securities | — | — | 1,974 | 14,810 | ||||||||||||
Less: gains on the sale of certain assets related to our equity management services business (2) | — | — | (4,243 | ) | — | |||||||||||
Tax impact of gains on the sale of certain assets related to our equity management services business | — | — | 1,690 | — | ||||||||||||
Less: net gain from note repurchases and termination of corresponding interest rate swaps (3) | — | — | — | (3,123 | ) | |||||||||||
Tax impact of net gain from note repurchases and termination of corresponding interest rate swaps | — | — | — | 1,240 | ||||||||||||
Non-GAAP net income available to common stockholders | $ | 42,289 | $ | 37,571 | $ | 119,148 | $ | 111,941 | ||||||||
GAAP earnings per common share—diluted | 0.94 | 0.86 | 2.79 | 3.12 | ||||||||||||
Less: gains on sales of available-for-sale securities (1) | — | — | (0.11 | ) | (0.85 | ) | ||||||||||
Tax impact of gains on sales of available-for-sale securities | — | — | 0.05 | 0.34 | ||||||||||||
Less: gains on the sale of certain assets related to our equity management services business (2) | — | — | (0.10 | ) | — | |||||||||||
Tax impact of gains on the sale of certain assets related to our equity management services business | — | — | 0.04 | — | ||||||||||||
Less: net gain from note repurchases and termination of corresponding interest rate swaps (3) | — | — | — | (0.07 | ) | |||||||||||
Tax impact of net gain from note repurchases and termination of corresponding interest rate swaps | — | — | — | 0.03 | ||||||||||||
Non-GAAP earnings per common share—diluted | 0.94 | 0.86 | 2.67 | 2.57 | ||||||||||||
Weighted average diluted common shares outstanding | 44,914,564 | 43,791,238 | 44,692,224 | 43,641,185 |
(1) | Gains on the sales of $315.7 million and $1.4 billion in certain available-for-sale securities in the second quarters of 2012 and 2011, respectively. |
(2) | Net gains of $4.2 million from the sale of certain assets related to our equity management services business in the second quarter of 2012. |
(3) | Net gains of $3.1 million from the repurchase of $108.6 million of our 5.70% Senior Notes and $204.0 million of our 6.05% Subordinated Notes and the termination of the corresponding portions of interest rate swaps in the second quarter of 2011. |
2012 Compared to 2011 | 2012 Compared to 2011 | |||||||||||||||||||||||
Three months ended September 30, increase (decrease) due to change in | Nine months ended September 30, increase (decrease) due to change in | |||||||||||||||||||||||
(Dollars in thousands) | Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
Interest income: | ||||||||||||||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities | $ | (273 | ) | $ | 23 | $ | (250 | ) | $ | (2,279 | ) | $ | 382 | $ | (1,897 | ) | ||||||||
Available-for-sale securities (taxable) | 3,656 | (4,520 | ) | (864 | ) | 17,718 | (12,734 | ) | 4,984 | |||||||||||||||
Available-for-sale securities (non-taxable) | (13 | ) | 6 | (7 | ) | (95 | ) | 49 | (46 | ) | ||||||||||||||
Loans, net of unearned income | 29,624 | (9,871 | ) | 19,753 | 81,439 | (21,532 | ) | 59,907 | ||||||||||||||||
Increase (decrease) in interest income, net | 32,994 | (14,362 | ) | 18,632 | 96,783 | (33,835 | ) | 62,948 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||||||
NOW deposits | 10 | 25 | 35 | 57 | (9 | ) | 48 | |||||||||||||||||
Money market deposits | 98 | (4 | ) | 94 | 254 | (1,228 | ) | (974 | ) | |||||||||||||||
Money market deposits in foreign offices | 3 | — | 3 | (8 | ) | (160 | ) | (168 | ) | |||||||||||||||
Time deposits | (66 | ) | (40 | ) | (106 | ) | (428 | ) | 6 | (422 | ) | |||||||||||||
Sweep deposits in foreign offices | 1 | (2 | ) | (1 | ) | (239 | ) | (789 | ) | (1,028 | ) | |||||||||||||
Total increase (decrease) in deposits expense | 46 | (21 | ) | 25 | (364 | ) | (2,180 | ) | (2,544 | ) | ||||||||||||||
Short-term borrowings | 1 | 11 | 12 | 100 | 10 | 110 | ||||||||||||||||||
5.375% Senior Notes | 1 | 5 | 6 | 17 | 1 | 18 | ||||||||||||||||||
3.875% Convertible Notes | — | — | — | (4,210 | ) | — | (4,210 | ) | ||||||||||||||||
Junior Subordinated Debentures | (3 | ) | 4 | 1 | (7 | ) | 6 | (1 | ) | |||||||||||||||
5.70% Senior Notes | (342 | ) | — | (342 | ) | (1,115 | ) | 524 | (591 | ) | ||||||||||||||
6.05% Subordinated Notes | 2 | 32 | 34 | (715 | ) | (66 | ) | (781 | ) | |||||||||||||||
Other long-term debt | (77 | ) | — | (77 | ) | (327 | ) | 196 | (131 | ) | ||||||||||||||
Total (decrease) increase in borrowings expense | (418 | ) | 52 | (366 | ) | (6,257 | ) | 671 | (5,586 | ) | ||||||||||||||
(Decrease) increase in interest expense, net | (372 | ) | 31 | (341 | ) | (6,621 | ) | (1,509 | ) | (8,130 | ) | |||||||||||||
Increase (decrease) in net interest income | $ | 33,366 | $ | (14,393 | ) | $ | 18,973 | $ | 103,404 | $ | (32,326 | ) | $ | 71,078 |
• | Interest income for the three months ended September 30, 2012 increased by $18.6 million primarily due to: |
◦ | A $19.8 million increase in interest income on loans, primarily due to an increase in average loan balances of $1.9 billion. This increase was partially offset by a decrease in the overall yield on our loan portfolio reflective of our success in growing our later stage client portfolio, which typically is benchmarked to three-month LIBOR and bears lower credit risk. Additionally, the trend in yields is being influenced by changes in the composition of our loan portfolio to a higher proportion of variable-rate loans benchmarked to the national Prime rate. |
◦ | A $0.9 million decrease in interest income on available-for-sale securities, reflecting a $4.5 million decrease related to lower overall yields, partially offset by $3.6 million increase related to higher average balances. The decrease in yields came primarily from an increase of $7.9 million in premium amortization expense from $9.3 million to $17.2 million, reflective of an increase in actual and estimated mortgage prepayment levels due to a decrease in long-term market rates and growth in our mortgage securities balances. As of September 30, 2012, the remaining unamortized premium balance on our available-for-sale securities portfolio was $123.8 million. The decrease in yield from an increase in premium amortization expense was partially offset by higher coupon yields resulting from a shift in our portfolio to a smaller proportion of lower-yielding variable-rate securities. For the three months ended September 30, 2012, average variable-rate securities were $2.0 billion, or 19.2 percent of our available-for-sale securities portfolio, compared to $2.6 billion, or 27.4 percent for the comparable 2011 period. These securities have variable-rate coupons that are indexed to and change with movements in the one-month LIBOR rate. |
• | Interest expense for the three months ended September 30, 2012 decreased by $0.3 million primarily due to: |
◦ | A decrease in interest expense of $0.4 million related to our long-term debt, mainly attributable to a decrease of $0.3 million related to our 5.70% Senior Notes, which matured on June 1, 2012. |
• | Interest income for the nine months ended September 30, 2012 increased by $62.9 million primarily due to: |
◦ | A $59.9 million increase in interest income on loans, primarily due to an increase in average loan balances of $1.7 billion, as well as an increase of $7.5 million in loan prepayment fees. These increases were partially offset by a decrease in the overall yield on our loan portfolio reflective of our success in growing our later stage client portfolio, which typically is benchmarked to three-month LIBOR and bears lower credit risk. Additionally, the trend in yields is being influenced by changes in the composition of our loan portfolio to a higher proportion of variable-rate loans benchmarked to the national Prime rate. |
◦ | A $4.9 million increase in interest income on available-for-sale securities, reflecting a $17.6 million increase related to higher average balances, offset by a $12.7 million decrease related to lower yields. The increase in average balances came primarily from new investments in fixed-rate mortgage securities in the latter part of 2011 and first and third quarters of 2012, which were purchased with excess cash as a result of our continued deposit growth. The decrease in yields came primarily from an increase of $24.3 million in premium amortization expense from $18.2 million to $42.5 million, reflective of an increase in actual and estimated mortgage prepayment levels due to a decrease in long-term market rates and growth in our |
• | Interest expense for the nine months ended September 30, 2012 decreased by $8.1 million primarily due to: |
◦ | A decrease in interest expense of $5.7 million related to our long-term debt, primarily due to the maturity of $250.0 million of our 3.875% Convertible Notes in April 2011. |
◦ | A decrease in interest expense from interest-bearing deposits of $2.5 million, primarily due to decreases in rates paid on deposits throughout 2011, which is reflective of market rates. |
• | A decrease in net interest margin from a decrease in the overall yield on our loan portfolio resulting from changes in loan composition, which is reflective of our ongoing strategy of growing our larger, later stage client portfolio that typically has lower credit risk and therefore lower relative yield. |
• | A decrease in net interest margin from a decrease in overall yields on our available-for-sale securities portfolio, due to an increase in premium amortization expense. |
• | An increase in net interest margin from an increase of $1.9 billion in average loan balances (higher-yielding assets). |
Three months ended September 30, | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1) | $ | 1,287,103 | $ | 1,125 | 0.35 | % | $ | 1,595,176 | $ | 1,375 | 0.34 | % | ||||||||||
Available-for-sale securities: (2) | ||||||||||||||||||||||
Taxable | 10,478,071 | 38,493 | 1.46 | 9,528,645 | 39,357 | 1.64 | ||||||||||||||||
Non-taxable (3) | 91,654 | 1,375 | 5.97 | 92,268 | 1,382 | 5.94 | ||||||||||||||||
Total loans, net of unearned income (4) (5) | 7,907,606 | 121,446 | 6.11 | 6,006,614 | 101,693 | 6.72 | ||||||||||||||||
Total interest-earning assets | 19,764,434 | 162,439 | 3.27 | 17,222,703 | 143,807 | 3.31 | ||||||||||||||||
Cash and due from banks | 309,934 | 286,485 | ||||||||||||||||||||
Allowance for loan losses | (102,506 | ) | (88,315 | ) | ||||||||||||||||||
Other assets (6) | 1,755,335 | 1,375,637 | ||||||||||||||||||||
Total assets | $ | 21,727,197 | $ | 18,796,510 | ||||||||||||||||||
Funding sources: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
NOW deposits | $ | 105,302 | $ | 88 | 0.33 | % | $ | 89,549 | $ | 53 | 0.23 | % | ||||||||||
Money market deposits | 2,790,021 | 1,219 | 0.17 | 2,577,617 | 1,125 | 0.17 | ||||||||||||||||
Money market deposits in foreign offices | 118,002 | 29 | 0.10 | 104,605 | 26 | 0.10 | ||||||||||||||||
Time deposits | 157,585 | 130 | 0.33 | 229,430 | 236 | 0.41 | ||||||||||||||||
Sweep deposits in foreign offices | 2,174,737 | 274 | 0.05 | 2,168,078 | 275 | 0.05 | ||||||||||||||||
Total interest-bearing deposits | 5,345,647 | 1,740 | 0.13 | 5,169,279 | 1,715 | 0.13 | ||||||||||||||||
Short-term borrowings | 26,751 | 12 | 0.18 | 1,250 | — | — | ||||||||||||||||
5.375% Senior Notes | 347,910 | 4,818 | 5.51 | 347,712 | 4,812 | 5.49 | ||||||||||||||||
Junior Subordinated Debentures | 55,269 | 830 | 5.97 | 55,445 | 829 | 5.93 | ||||||||||||||||
5.70% Senior Notes | — | — | — | 146,816 | 342 | 0.92 | ||||||||||||||||
6.05% Subordinated Notes | 55,214 | 128 | 0.92 | 54,208 | 94 | 0.69 | ||||||||||||||||
Other long-term debt | — | — | — | 5,840 | 77 | 5.23 | ||||||||||||||||
Total interest-bearing liabilities | 5,830,791 | 7,528 | 0.51 | 5,780,550 | 7,869 | 0.54 | ||||||||||||||||
Portion of noninterest-bearing funding sources | 13,933,643 | 11,442,153 | ||||||||||||||||||||
Total funding sources | 19,764,434 | 7,528 | 0.15 | 17,222,703 | 7,869 | 0.18 | ||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||
Demand deposits | 12,914,697 | 10,634,757 | ||||||||||||||||||||
Other liabilities | 452,160 | 287,030 | ||||||||||||||||||||
SVBFG stockholders’ equity | 1,782,443 | 1,500,452 | ||||||||||||||||||||
Noncontrolling interests | 747,106 | 593,721 | ||||||||||||||||||||
Portion used to fund interest-earning assets | (13,933,643 | ) | (11,442,153 | ) | ||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 21,727,197 | $ | 18,796,510 | ||||||||||||||||||
Net interest income and margin | $ | 154,911 | 3.12 | % | $ | 135,938 | 3.13 | % | ||||||||||||||
Total deposits | $ | 18,260,344 | $ | 15,804,036 | ||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||
Adjustments for taxable equivalent basis | (481 | ) | (483 | ) | ||||||||||||||||||
Net interest income, as reported | $ | 154,430 | $ | 135,455 |
(1) | Includes average interest-earning deposits in other financial institutions of $211.0 million and $338.4 million for the three months ended September 30, 2012 and 2011, respectively. For the three months ended September 30, 2012 and 2011, balances also include $887.0 million and $975.1 million, respectively, deposited at the FRB, earning interest at the Federal Funds target rate. |
(2) | Yields on available-for-sale securities are based on amortized cost, and therefore do not give effect to unrealized changes in fair value that are reflected in other comprehensive income. |
(3) | Interest income on non-taxable available-for-sale securities is presented on a fully taxable-equivalent basis using the federal statutory income tax rate of 35.0 percent for all periods presented. |
(4) | Nonaccrual loans are reflected in the average balances of loans. |
(5) | Interest income includes loan fees of $19.0 million and $17.8 million for the three months ended September 30, 2012 and 2011, respectively. |
(6) | Average investment securities of $1.4 billion and $1.0 billion for the three months ended September 30, 2012 and 2011, respectively, were classified as other assets as they were noninterest-earning assets. These investments primarily consisted of non-marketable securities. |
Nine months ended September 30, | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1) | $ | 1,115,192 | $ | 3,075 | 0.37 | % | $ | 1,951,625 | $ | 4,972 | 0.34 | % | ||||||||||
Available-for-sale securities: (2) | ||||||||||||||||||||||
Taxable | 10,574,021 | 129,940 | 1.64 | 9,195,583 | 124,956 | 1.82 | ||||||||||||||||
Non-taxable (3) | 92,002 | 4,143 | 6.02 | 94,179 | 4,189 | 5.95 | ||||||||||||||||
Total loans, net of unearned income (4) (5) | 7,318,537 | 344,842 | 6.29 | 5,619,709 | 284,935 | 6.78 | ||||||||||||||||
Total interest-earning assets | 19,099,752 | 482,000 | 3.37 | 16,861,096 | 419,052 | 3.32 | ||||||||||||||||
Cash and due from banks | 301,507 | 275,617 | ||||||||||||||||||||
Allowance for loan losses | (100,795 | ) | (87,616 | ) | ||||||||||||||||||
Other assets (5) | 1,652,577 | 1,287,751 | ||||||||||||||||||||
Total assets | $ | 20,953,041 | $ | 18,336,848 | ||||||||||||||||||
Funding sources: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
NOW deposits | $ | 102,502 | $ | 246 | 0.32 | % | $ | 79,112 | $ | 198 | 0.33 | % | ||||||||||
Money market deposits | 2,646,272 | 3,212 | 0.16 | 2,486,211 | 4,186 | 0.23 | ||||||||||||||||
Money market deposits in foreign offices | 130,257 | 96 | 0.10 | 134,216 | 264 | 0.26 | ||||||||||||||||
Time deposits | 156,321 | 491 | 0.42 | 292,710 | 913 | 0.42 | ||||||||||||||||
Sweep deposits in foreign offices | 2,108,404 | 790 | 0.05 | 2,475,263 | 1,818 | 0.10 | ||||||||||||||||
Total interest-bearing deposits | 5,143,756 | 4,835 | 0.13 | 5,467,512 | 7,379 | 0.18 | ||||||||||||||||
Short-term borrowings | 91,772 | 135 | 0.20 | 22,287 | 25 | 0.15 | ||||||||||||||||
5.375% Senior Notes | 347,860 | 14,449 | 5.55 | 347,665 | 14,431 | 5.55 | ||||||||||||||||
3.875% Convertible Notes | — | — | — | 95,071 | 4,210 | 5.92 | ||||||||||||||||
Junior Subordinated Debentures | 55,313 | 2,493 | 6.02 | 55,489 | 2,494 | 6.01 | ||||||||||||||||
5.70% Senior Notes | 79,312 | 863 | 1.45 | 199,734 | 1,454 | 0.97 | ||||||||||||||||
6.05% Subordinated Notes | 55,122 | 382 | 0.93 | 157,789 | 1,163 | 0.99 | ||||||||||||||||
Other long-term debt | 642 | 92 | 19.14 | 5,580 | 223 | 5.34 | ||||||||||||||||
Total interest-bearing liabilities | 5,773,777 | 23,249 | 0.54 | 6,351,127 | 31,379 | 0.66 | ||||||||||||||||
Portion of noninterest-bearing funding sources | 13,325,975 | 10,509,969 | ||||||||||||||||||||
Total funding sources | 19,099,752 | 23,249 | 0.16 | 16,861,096 | 31,379 | 0.25 | ||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||
Demand deposits | 12,403,438 | 9,783,426 | ||||||||||||||||||||
Other liabilities | 355,571 | 254,033 | ||||||||||||||||||||
SVBFG stockholders’ equity | 1,704,957 | 1,407,231 | ||||||||||||||||||||
Noncontrolling interests | 715,298 | 541,031 | ||||||||||||||||||||
Portion used to fund interest-earning assets | (13,325,975 | ) | (10,509,969 | ) | ||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 20,953,041 | $ | 18,336,848 | ||||||||||||||||||
Net interest income and margin | $ | 458,751 | 3.21 | % | $ | 387,673 | 3.07 | % | ||||||||||||||
Total deposits | $ | 17,547,194 | $ | 15,250,938 | ||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||
Adjustments for taxable equivalent basis | (1,450 | ) | (1,466 | ) | ||||||||||||||||||
Net interest income, as reported | $ | 457,301 | $ | 386,207 |
(1) | Includes average interest-earning deposits in other financial institutions of $277.1 million and $293.0 million for the nine months ended September 30, 2012 and 2011, respectively. For the nine months ended September 30, 2012 and 2011, balances also include $626.3 million and $1.4 billion, respectively, deposited at the FRB, earning interest at the Federal Funds target rate. |
(2) | Yields on available-for-sale securities are based on amortized cost, and therefore do not give effect to unrealized changes in fair value that are reflected in other comprehensive income. |
(3) | Interest income on non-taxable available-for-sale securities is presented on a fully taxable-equivalent basis using the federal statutory income tax rate of 35.0 percent for all periods presented. |
(4) | Nonaccrual loans are reflected in the average balances of loans. |
(5) | Interest income includes loan fees of $56.6 million and $48.3 million for the nine months ended September 30, 2012 and 2011, respectively. |
(6) | Average investment securities of$1.3 billion and $899.6 million for the nine months ended September 30, 2012 and 2011, respectively, were classified as other assets as they were noninterest-earning assets. These investments primarily consisted of non-marketable securities. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Allowance for loan losses, beginning balance | $ | 98,166 | $ | 82,155 | $ | 89,947 | $ | 82,627 | ||||||||
Provision for (reduction of) loan losses | 6,788 | 769 | 29,316 | (2,144 | ) | |||||||||||
Gross loan charge-offs | (4,637 | ) | (8,248 | ) | (25,757 | ) | (16,863 | ) | ||||||||
Loan recoveries | 1,207 | 10,570 | 8,018 | 21,626 | ||||||||||||
Allowance for loan losses, ending balance | $ | 101,524 | $ | 85,246 | $ | 101,524 | $ | 85,246 | ||||||||
Provision for (reduction of) loan losses as a percentage of total gross loans (annualized) | 0.33 | % | 0.05 | % | 0.47 | % | (0.04 | )% | ||||||||
Gross loan charge-offs as a percentage of average total gross loans (annualized) | 0.23 | 0.54 | 0.47 | 0.40 | ||||||||||||
Net loan charge-offs (recoveries) as a percentage of average total gross loans (annualized) | 0.17 | (0.15 | ) | 0.32 | (0.11 | ) | ||||||||||
Allowance for loan losses as a percentage of period-end total gross loans | 1.23 | 1.34 | 1.23 | 1.34 | ||||||||||||
Period-end total gross loans | $ | 8,266,168 | $ | 6,382,235 | $ | 8,266,168 | $ | 6,382,235 | ||||||||
Average total gross loans | 7,976,257 | 6,057,937 | 7,380,458 | 5,666,939 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Core fee income: | ||||||||||||||||||||||
Foreign exchange fees | $ | 12,211 | $ | 11,546 | 5.8 | % | $ | 36,345 | $ | 32,397 | 12.2 | % | ||||||||||
Deposit service charges | 8,369 | 8,259 | 1.3 | 24,834 | 23,214 | 7.0 | ||||||||||||||||
Credit card fees | 6,348 | 4,506 | 40.9 | 18,185 | 12,687 | 43.3 | ||||||||||||||||
Letters of credit and standby letters of credit income | 3,495 | 3,040 | 15.0 | 10,427 | 8,452 | 23.4 | ||||||||||||||||
Client investment fees | 3,954 | 2,939 | 34.5 | 10,226 | 9,707 | 5.3 | ||||||||||||||||
Total core fee income (1) | 34,377 | 30,290 | 13.5 | 100,017 | 86,457 | 15.7 | ||||||||||||||||
Gains on investment securities, net | 20,228 | 52,262 | (61.3 | ) | 53,876 | 175,279 | (69.3 | ) | ||||||||||||||
Gains on derivative instruments, net | 1,111 | 9,951 | (88.8 | ) | 15,800 | 24,153 | (34.6 | ) | ||||||||||||||
Other | 13,423 | 3,108 | NM | 39,165 | 23,384 | 67.5 | ||||||||||||||||
Total noninterest income | $ | 69,139 | $ | 95,611 | (27.7 | ) | $ | 208,858 | $ | 309,273 | (32.5 | ) |
(1) | The following table provides a reconciliation GAAP noninterest income to non-GAAP core fee income: |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
GAAP noninterest income (as reported) | $ | 69,139 | $ | 95,611 | (27.7 | )% | $ | 208,858 | $ | 309,273 | (32.5 | )% | ||||||||||
Less: gains on investment securities, net | 20,228 | 52,262 | (61.3 | ) | 53,876 | 175,279 | (69.3 | ) | ||||||||||||||
Less: gains on derivative instruments, net | 1,111 | 9,951 | (88.8 | ) | 15,800 | 24,153 | (34.6 | ) | ||||||||||||||
Less: other noninterest income | 13,423 | 3,108 | NM | 39,165 | 23,384 | 67.5 | ||||||||||||||||
Non-GAAP core fee income | $ | 34,377 | $ | 30,290 | 13.5 | $ | 100,017 | $ | 86,457 | 15.7 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
GAAP noninterest income (as reported) | $ | 69,139 | $ | 95,611 | (27.7 | )% | $ | 208,858 | $ | 309,273 | (32.5 | )% | ||||||||||
Less: income attributable to noncontrolling interests, including carried interest | 13,524 | 41,239 | (67.2 | ) | 34,826 | 111,359 | (68.7 | ) | ||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | 55,615 | 54,372 | 2.3 | 174,032 | 197,914 | (12.1 | ) | |||||||||||||||
Less: gains on sales of certain available-for-sale securities | — | — | — | 4,955 | 37,314 | (86.7 | ) | |||||||||||||||
Less: net gains on the sale of certain assets related to our equity management services business | — | — | — | 4,243 | — | — | ||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests and excluding gains on sales of certain assets | $ | 55,615 | $ | 54,372 | 2.3 | $ | 164,834 | $ | 160,600 | 2.6 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
(Dollars in millions) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||
Client directed investment assets (1) | $ | 7,528 | $ | 8,063 | (6.6 | )% | 7,406 | 8,845 | (16.3 | )% | ||||||||||
Client investment assets under management | 10,283 | 9,541 | 7.8 | 10,247 | 8,519 | 20.3 | ||||||||||||||
Sweep money market funds | 3,118 | 312 | NM | 2,239 | 132 | NM | ||||||||||||||
Total average client investment funds (2) | $ | 20,929 | $ | 17,916 | 16.8 | 19,892 | 17,496 | 13.7 |
(1) | Comprised of mutual funds and Repurchase Agreement Program assets. |
(2) | Client investment funds are maintained at third party financial institutions and are not recorded on our balance sheet. |
(Dollars in millions) | September 30, 2012 | December 31, 2011 | % Change | ||||||
Client directed investment assets | 7,363 | 7,709 | (4.5 | )% | |||||
Client investment assets under management | 10,291 | 9,919 | 3.8 | ||||||
Sweep money market funds | 3,404 | 1,116 | NM | ||||||
Total period-end client investment funds | 21,058 | 18,744 | 12.3 |
• | Gains of $5.4 million from our investments in debt funds, driven primarily by IPO and M&A activity and other valuation adjustments on investments within the funds. |
• | Gains of $1.4 million from the sale of certain private company shares, which were included as part of "Strategic and Other Investments". |
• | Gains of $8.8 million from our investments in debt funds, driven primarily by IPO and M&A activity and other valuation adjustments on investments within the funds. |
• | Gains of $5.0 million from the sale of $315.7 million U.S. agency securities in the second quarter of 2012 that were held in our available-for-sale securities portfolio. |
• | Gains of $4.1 million from our strategic and other investments, primarily from gains on the sales of certain private company shares and unrealized gains from certain fund investments. |
(Dollars in thousands) | Managed Funds of Funds | Managed Direct Venture Funds | Debt Funds | Available- For-Sale Securities | Strategic and Other Investments | Total | ||||||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 12,139 | $ | 2,034 | $ | 5,439 | $ | (101 | ) | $ | 717 | $ | 20,228 | |||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 11,351 | 1,427 | (2 | ) | — | — | 12,776 | |||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 788 | $ | 607 | $ | 5,441 | $ | (101 | ) | $ | 717 | $ | 7,452 | |||||||||||
Three months ended September 30, 2011 | ||||||||||||||||||||||||
Total gains on investment securities, net | $ | 32,264 | $ | 17,517 | $ | 1,422 | $ | 5 | $ | 1,054 | $ | 52,262 | ||||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 28,765 | 14,222 | (26 | ) | — | — | 42,961 | |||||||||||||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests | $ | 3,499 | $ | 3,295 | $ | 1,448 | $ | 5 | $ | 1,054 | $ | 9,301 | ||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 38,908 | $ | (1,589 | ) | $ | 8,823 | $ | 3,592 | $ | 4,142 | $ | 53,876 | |||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 35,919 | (1,331 | ) | 28 | — | — | 34,616 | |||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | 2,989 | (258 | ) | 8,795 | 3,592 | 4,142 | 19,260 | |||||||||||||||||
Less: gain on sales of available-for-sale securities | — | — | — | 4,955 | — | 4,955 | ||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests and excluding gains on sales of certain available-for-sale securities | $ | 2,989 | $ | (258 | ) | $ | 8,795 | $ | (1,363 | ) | $ | 4,142 | $ | 14,305 | ||||||||||
Nine months ended September 30, 2011 | ||||||||||||||||||||||||
Total gains on investment securities, net | $ | 107,640 | $ | 19,623 | $ | 4,524 | $ | 37,288 | $ | 6,204 | $ | 175,279 | ||||||||||||
Less: income attributable to noncontrolling interests, including carried interest | 95,727 | 17,042 | 14 | — | — | 112,783 | ||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | 11,913 | 2,581 | 4,510 | 37,288 | 6,204 | 62,496 | ||||||||||||||||||
Less: gain on sales of available-for-sale securities | — | — | — | 37,314 | — | 37,314 | ||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests and excluding gains on sales of certain available-for-sale securities | $ | 11,913 | $ | 2,581 | $ | 4,510 | $ | (26 | ) | $ | 6,204 | $ | 25,182 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Equity warrant assets (1) | ||||||||||||||||||||||
Gains on exercises, net | $ | 2,417 | $ | 2,372 | 1.9 | % | $ | 7,577 | $ | 11,977 | (36.7 | )% | ||||||||||
Cancellations and expirations | (252 | ) | (386 | ) | (34.7 | ) | (1,424 | ) | (1,690 | ) | (15.7 | ) | ||||||||||
Changes in fair value | (1,618 | ) | 3,532 | (145.8 | ) | 6,205 | 13,088 | (52.6 | ) | |||||||||||||
Net gains on equity warrant assets (2) | 547 | 5,518 | (90.1 | ) | 12,358 | 23,375 | (47.1 | ) | ||||||||||||||
Gains on foreign exchange forward contracts, net: | ||||||||||||||||||||||
Gains on client foreign exchange forward contracts, net | 607 | 658 | (7.8 | ) | 3,002 | 1,448 | 107.3 | |||||||||||||||
Gains on internal foreign exchange forward contracts, net (3) | 220 | 3,591 | (93.9 | ) | 1,162 | 540 | 115.2 | |||||||||||||||
Total gains on foreign exchange forward contracts, net | 827 | 4,249 | (80.5 | ) | 4,164 | 1,988 | 109.5 | |||||||||||||||
Change in fair value of interest rate swaps | 74 | (400 | ) | (118.5 | ) | 571 | (467 | ) | NM | |||||||||||||
Net (losses) gains on other derivatives (4) | (337 | ) | 584 | (157.7 | ) | (1,293 | ) | (743 | ) | 74.0 | ||||||||||||
Gains on derivative instruments, net | $ | 1,111 | $ | 9,951 | (88.8 | ) | $ | 15,800 | $ | 24,153 | (34.6 | ) |
(1) | At September 30, 2012, we held warrants in 1,248 companies, compared to 1,151 companies at September 30, 2011. |
(2) | Net gains on equity warrant assets are included in the line item “Gains on derivative instruments, net” as part of noninterest income. |
(3) | Represents the change in the fair value of foreign exchange forward contracts used to economically reduce our foreign exchange exposure related to certain foreign currency denominated loans. |
(4) | Primarily represents the change in fair value of loan conversion options held by SVB Financial. As of September 30, 2012, the loan conversion options related to five clients. |
• | Net gains on equity warrant assets of $0.5 million for the three months ended September 30, 2012, compared to net gains of $5.5 million for the comparable 2011 period. The net gains of $0.5 million for the three months ended September 30, 2012 included the following: |
◦ | Gains of $2.4 million from the exercise of equity warrant assets. |
◦ | Losses of $1.6 million from changes in fair value, which were the net result of valuation decreases of $3.4 million driven by increases in the marketability discount and remaining life assumptions to reflect market conditions, offset by net gains of $1.8 million from increases in individual warrant valuations. |
• | Net gains of $0.2 million on foreign exchange forward contracts hedging certain of our foreign currency denominated loans for the three months ended September 30, 2012, compared to net gains of $3.6 million for the comparable 2011 period. The net gains of $3.6 million for the three months ended September 30, 2011 were primarily due to the strengthening of the U.S. Dollar against the Euro and Pound Sterling, and were partially offset by net losses of $3.8 million from the revaluation of foreign currency denominated loans that are included in the line item "Other" as part of noninterest income. |
• | Net gains on equity warrant assets of $12.4 million for the nine months ended September 30, 2012, compared to net gains of $23.4 million for the comparable 2011 period. The net gains of $12.4 million for the nine months ended |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Unused commitment fees | $ | 2,579 | $ | 1,900 | 35.7 | % | $ | 9,312 | $ | 5,194 | 79.3 | % | ||||||||||
Fund management fees | 2,496 | 2,671 | (6.6 | ) | 8,448 | 8,022 | 5.3 | |||||||||||||||
Service-based fee income (1) | 1,651 | 2,339 | (29.4 | ) | 6,197 | 7,151 | (13.3 | ) | ||||||||||||||
Net gains on the sale of certain assets related to our equity management services business | — | — | — | 4,243 | — | — | ||||||||||||||||
Loan syndication fees | 1,353 | 50 | NM | 2,853 | 920 | NM | ||||||||||||||||
Gains (losses) on revaluation of foreign currency instruments (2) | 1,578 | (3,931 | ) | (140.1 | ) | 96 | (733 | ) | (113.1 | ) | ||||||||||||
Currency revaluation gains (losses) (3) | 845 | (1,551 | ) | (154.5 | ) | (88 | ) | (2,672 | ) | (96.7 | ) | |||||||||||
Other | 2,921 | 1,630 | 79.2 | 8,104 | 5,502 | 47.3 | ||||||||||||||||
Total other noninterest income | $ | 13,423 | $ | 3,108 | NM | $ | 39,165 | $ | 23,384 | 67.5 |
(1) | Includes income from SVB Analytics. |
(2) | Represents the revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash |
(3) | Represents the revaluation of foreign currency denominated financial statements of certain funds. Included in these amounts are gains of $0.8 million and losses of $3 thousand for the three and nine months ended September 30, 2012, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests. This compares to losses of $1.7 million and $1.6 million for the comparable 2011 periods. |
• | Gains on the revaluation of foreign currency instruments of $1.6 million for the three months ended September 30, 2012, compared to net losses of $3.9 million for the comparable 2011 period. The revaluation gains were primarily due to the weakening of the U.S. Dollar against the Euro and Pound Sterling. |
• | Currency revaluation gains of $0.8 million for the three months ended September 30, 2012, compared to net losses $1.6 million for the comparable 2011 period. The revaluation gains primarily due to the weakening of the U.S. Dollar against the Rupee. |
• | A $1.3 million increase in loan syndication fee income due to an increase in the volume of loan syndication deals |
• | Gains of $4.2 million on the sale of certain assets related to our equity management services business in the second quarter of 2012. |
• | A $4.1 million increase in unused commitment fees, primarily resulting from the prospective reclassification of certain fees from interest income to noninterest income. The comparable amount of these fees included in interest income for the nine months ended September 30, 2011 was $3.0 million. |
• | Currency revaluation losses of $0.1 million for the nine months ended September 30, 2012, compared to net losses of $2.7 million for the comparable 2011 period. The net losses of $0.1 million for the nine months ended September 30, |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Compensation and benefits | $ | 79,262 | $ | 77,009 | 2.9 | % | $ | 243,384 | $ | 232,529 | 4.7 | % | ||||||||||
Professional services | 17,759 | 16,122 | 10.2 | 48,880 | 43,000 | 13.7 | ||||||||||||||||
Premises and equipment | 11,247 | 7,220 | 55.8 | 28,230 | 19,572 | 44.2 | ||||||||||||||||
Business development and travel | 6,838 | 5,886 | 16.2 | 21,743 | 17,429 | 24.8 | ||||||||||||||||
Net occupancy | 5,666 | 4,967 | 14.1 | 16,667 | 14,163 | 17.7 | ||||||||||||||||
Correspondent bank fees | 3,000 | 2,336 | 28.4 | 8,528 | 6,701 | 27.3 | ||||||||||||||||
FDIC assessments | 2,836 | 2,302 | 23.2 | 8,065 | 7,940 | 1.6 | ||||||||||||||||
Provision for unfunded credit commitments | (400 | ) | 2,055 | (119.5 | ) | 1,264 | 2,131 | (40.7 | ) | |||||||||||||
Other | 8,963 | 9,554 | (6.2 | ) | 26,188 | 22,453 | 16.6 | |||||||||||||||
Total noninterest expense | $ | 135,171 | $ | 127,451 | 6.1 | $ | 402,949 | $ | 365,918 | 10.1 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
Non-GAAP operating efficiency ratio, net of noncontrolling interests (Dollars in thousands, except ratios) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
GAAP noninterest expense | $ | 135,171 | $ | 127,451 | 6.1 | % | $ | 402,949 | $ | 365,918 | 10.1 | % | ||||||||||
Less: amounts attributable to noncontrolling interests | 2,723 | 2,766 | (1.6 | ) | 9,488 | 8,868 | 7.0 | |||||||||||||||
Less: net gain from note repurchases and termination of corresponding interest rate swaps | — | — | — | — | (3,123 | ) | (100.0 | ) | ||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests | $ | 132,448 | $ | 124,685 | 6.2 | $ | 393,461 | $ | 360,173 | 9.2 | ||||||||||||
GAAP taxable equivalent net interest income | $ | 154,911 | $ | 135,938 | 14.0 | $ | 458,751 | $ | 387,673 | 18.3 | ||||||||||||
Less: income attributable to noncontrolling interests | 50 | 32 | 56.3 | 131 | 84 | 56.0 | ||||||||||||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests | 154,861 | 135,906 | 13.9 | 458,620 | 387,589 | 18.3 | ||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | 55,615 | 54,372 | 2.3 | 164,834 | 160,600 | 2.6 | ||||||||||||||||
Non-GAAP taxable equivalent revenue, net of noncontrolling interests | $ | 210,476 | $ | 190,278 | 10.6 | $ | 623,454 | $ | 548,189 | 13.7 | ||||||||||||
Non-GAAP operating efficiency ratio (1) | 62.93 | % | 65.53 | % | (4.0 | ) | 63.11 | % | 65.70 | % | (3.9 | ) |
(1) | The non-GAAP operating efficiency ratio is calculated by dividing non-GAAP noninterest expense by non-GAAP total taxable-equivalent income. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||
Salaries and wages | $ | 37,769 | $ | 33,342 | 13.3 | % | $ | 113,391 | $ | 99,783 | 13.6 | % | ||||||||||
Incentive compensation & ESOP | 20,185 | 23,907 | (15.6 | ) | 62,170 | 71,894 | (13.5 | ) | ||||||||||||||
Other employee benefits (1) | 21,308 | 19,760 | 7.8 | 67,823 | 60,852 | 11.5 | ||||||||||||||||
Total compensation and benefits | $ | 79,262 | $ | 77,009 | 2.9 | $ | 243,384 | $ | 232,529 | 4.7 | ||||||||||||
Period-end full-time equivalent employees | 1,602 | 1,504 | 6.5 | 1,602 | 1,504 | 6.5 | ||||||||||||||||
Average full-time equivalent employees | 1,594 | 1,478 | 7.8 | 1,572 | 1,428 | 10.1 |
(1) | Other employee benefits includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), warrant and retention plans, agency fees and other employee related expenses. |
• | An increase of $4.4 million in salaries and wages expense, primarily due to an increase in the number of average FTEs, which increased by 116 to 1,594 average FTEs in the third quarter of 2012, compared to 1,478 average FTE for the comparable 2011 period. The increase in headcount was primarily to support our product development, operational and sales and advisory, as well as to support our commercial banking operations and initiatives. |
• | A decrease of $3.7 million in incentive compensation and ESOP expense primarily reflective of higher expenses in the third quarter of 2011 as a result of better than expected results for that period. |
• | An increase of $13.6 million in salaries and wages expense, primarily due to an increase in the number of average FTEs, which increased by 144 to 1,572 average FTEs in the nine months ended September 30, 2012, compared to 1,428 average FTEs for the comparable 2011 period. The increase in headcount was primarily to support our product development, operational and sales and advisory, as well as to support our commercial banking operations and initiatives. |
• | An increase of $7.0 million in other employee benefits, primarily due to an increase in average FTEs, as well as an increase in 401(k) expenses driven by 2011 incentive compensation payouts during the first quarter of 2012, which were at higher levels than 2010 incentive compensation payouts in the first quarter of 2011. |
• | A decrease of $9.7 million in incentive compensation and ESOP expense primarily reflective of higher expenses in the first nine months of 2011 as a result of better than expected results for that period. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Telephone | $ | 1,619 | $ | 1,610 | 0.6 | % | $ | 4,950 | $ | 4,376 | 13.1 | % | ||||||||||
Client services | 1,804 | 1,289 | 40.0 | 4,796 | 3,128 | 53.3 | ||||||||||||||||
Data processing services | 1,575 | 1,097 | 43.6 | 4,290 | 3,589 | 19.5 | ||||||||||||||||
Tax credit fund amortization | 941 | 1,212 | (22.4 | ) | 2,961 | 3,366 | (12.0 | ) | ||||||||||||||
Postage and supplies | 591 | 641 | (7.8 | ) | 1,844 | 1,725 | 6.9 | |||||||||||||||
Dues and publications | 472 | 465 | 1.5 | 1,503 | 1,166 | 28.9 | ||||||||||||||||
Net gain from note repurchases and termination of corresponding interest rate swaps (1) | — | — | — | — | (3,123 | ) | (100.0 | ) | ||||||||||||||
Other | 1,961 | 3,240 | (39.5 | ) | 5,844 | 8,226 | (29.0 | ) | ||||||||||||||
Total other noninterest expense | $ | 8,963 | $ | 9,554 | (6.2 | ) | $ | 26,188 | $ | 22,453 | 16.6 |
(1) | Represents net gains from the repurchase of $108.6 million of our 5.70% Senior Notes and $204.0 million of our 6.05% Subordinated Notes and the termination of the corresponding portions of interest rate swaps in 2011. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Net interest income (1) | $ | (50 | ) | $ | (32 | ) | 56.3 | % | $ | (131 | ) | $ | (84 | ) | 56.0 | % | ||||||
Noninterest income (1) | (14,416 | ) | (43,487 | ) | (66.8 | ) | (32,258 | ) | (114,276 | ) | (71.8 | ) | ||||||||||
Noninterest expense (1) | 2,723 | 2,766 | (1.6 | ) | 9,488 | 8,868 | 7.0 | |||||||||||||||
Carried interest (2) | 892 | 2,248 | (60.3 | ) | (2,568 | ) | 2,917 | (188.0 | ) | |||||||||||||
Net income attributable to noncontrolling interests | $ | (10,851 | ) | $ | (38,505 | ) | (71.8 | ) | $ | (25,469 | ) | $ | (102,575 | ) | (75.2 | ) |
(1) | Represents noncontrolling interests’ share in net interest income, noninterest income and noninterest expense. |
(2) | Represents the preferred allocation of income earned by the general partners or limited partners of certain consolidated funds. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Net interest income | $ | 151,858 | $ | 133,946 | 13.4 | % | $ | 441,542 | $ | 380,461 | 16.1 | % | ||||||||||
Provision for loan losses | (7,787 | ) | (3,883 | ) | 100.5 | (29,946 | ) | (3,222 | ) | NM | ||||||||||||
Noninterest income | 46,965 | 39,189 | 19.8 | 139,387 | 110,604 | 26.0 | ||||||||||||||||
Noninterest expense | (97,846 | ) | (92,350 | ) | 6.0 | (292,580 | ) | (262,932 | ) | 11.3 | ||||||||||||
Income before income tax expense | $ | 93,190 | $ | 76,902 | 21.2 | $ | 258,403 | $ | 224,911 | 14.9 | ||||||||||||
Total average loans, net of unearned income | $ | 7,159,609 | $ | 5,263,448 | 36.0 | $ | 6,559,036 | $ | 4,933,707 | 32.9 | ||||||||||||
Total average assets | 19,861,275 | 17,347,197 | 14.5 | 19,149,952 | 16,788,462 | 14.1 | ||||||||||||||||
Total average deposits | 17,881,175 | 15,573,886 | 14.8 | 17,240,715 | 15,063,215 | 14.5 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Net interest income | $ | 5,666 | $ | 5,513 | 2.8 | % | $ | 16,147 | $ | 14,567 | 10.8 | % | ||||||||||
Reduction of provision for loan losses | 999 | 3,114 | (67.9 | ) | 630 | 5,366 | (88.3 | ) | ||||||||||||||
Noninterest income | 149 | 128 | 16.4 | 457 | 351 | 30.2 | ||||||||||||||||
Noninterest expense | (3,749 | ) | (2,846 | ) | 31.7 | (10,338 | ) | (7,326 | ) | 41.1 | ||||||||||||
Income before income tax expense | $ | 3,065 | $ | 5,909 | (48.1 | ) | $ | 6,896 | $ | 12,958 | (46.8 | ) | ||||||||||
Total average loans, net of unearned income | $ | 755,001 | $ | 684,613 | 10.3 | $ | 745,069 | $ | 637,443 | 16.9 | ||||||||||||
Total average assets | 758,988 | 685,308 | 10.8 | 749,500 | 637,854 | 17.5 | ||||||||||||||||
Total average deposits | 341,537 | 200,547 | 70.3 | 278,736 | 169,368 | 64.6 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||||||||
Net interest income | $ | 6 | $ | 2 | 200.0 | % | $ | 22 | $ | 6 | NM% | |||||||||||
Noninterest income | 4,330 | 9,873 | (56.1 | ) | 12,474 | 23,879 | (47.8 | ) | ||||||||||||||
Noninterest expense | (3,562 | ) | (3,860 | ) | (7.7 | ) | (8,970 | ) | (10,113 | ) | (11.3 | ) | ||||||||||
Income before income tax expense | $ | 774 | $ | 6,015 | (87.1 | ) | $ | 3,526 | $ | 13,772 | (74.4 | ) | ||||||||||
Total average assets | $ | 238,595 | $ | 238,949 | (0.1 | ) | $ | 243,124 | $ | 225,041 | 8.0 |
• | Net gains on investment securities of $1.7 million for the three months ended September 30, 2012, compared to net gains of $7.5 million for the comparable 2011 period. The net gains on investment securities of $1.7 million for the three months ended September 30, 2012 were primarily driven by valuation adjustments within our managed funds of funds and direct venture funds. |
• | Fund management fees of $2.5 million for the three months ended September 30, 2012, compared to $2.7 million for the comparable 2011 period. |
• | Net gains on investment securities of $4.0 million for the nine months ended September 30, 2012, compared to net gains of $16.1 million for the comparable 2011 period. The net gains on investment securities of $4.0 million for the nine months ended September 30, 2012 were primarily driven by valuation adjustments and IPO and M&A activity within our managed funds of funds. |
• | Fund management fees of $8.4 million for the nine months ended September 30, 2012, compared to $8.0 million for the comparable 2011 period. |
September 30, 2012 | December 31, 2011 | |||||||||||||||
(Dollars in thousands) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Venture capital and private equity fund investments (1) | $ | 658,409 | $ | 76,541 | $ | 611,824 | $ | 77,674 | ||||||||
Other venture capital investments (2) | 118,622 | 10,998 | 124,121 | 11,333 | ||||||||||||
Other investments | — | — | 987 | 493 | ||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||
Other investments | 141,761 | 141,761 | 68,252 | 68,252 | ||||||||||||
Low income housing tax credit funds | 66,806 | 66,806 | 34,894 | 34,894 | ||||||||||||
Non-marketable securities (cost method accounting): | ||||||||||||||||
Venture capital and private equity fund investments | 158,275 | 158,275 | 145,007 | 145,007 | ||||||||||||
Other investments | 19,942 | 19,942 | 19,355 | 19,355 | ||||||||||||
Total non-marketable securities | $ | 1,163,815 | $ | 474,323 | $ | 1,004,440 | $ | 357,008 |
(1) | The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at September 30, 2012 and December 31, 2011: |
September 30, 2012 | December 31, 2011 | |||||||||||||||
(Dollars in thousands) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||
SVB Strategic Investors Fund, LP | $ | 35,963 | $ | 4,518 | $ | 39,567 | $ | 4,970 | ||||||||
SVB Strategic Investors Fund II, LP | 103,302 | 8,854 | 122,619 | 10,510 | ||||||||||||
SVB Strategic Investors Fund III, LP | 208,809 | 12,259 | 218,429 | 12,824 | ||||||||||||
SVB Strategic Investors Fund IV, LP | 161,082 | 8,054 | 122,076 | 6,104 | ||||||||||||
Strategic Investors Fund V Funds | 28,908 | 69 | 8,838 | 31 | ||||||||||||
SVB Capital Preferred Return Fund, LP | 51,460 | 12,137 | 42,580 | 11,571 | ||||||||||||
SVB Capital—NT Growth Partners, LP | 61,253 | 24,291 | 43,958 | 20,176 | ||||||||||||
SVB Capital Partners II, LP | 1,341 | 68 | 2,390 | 121 | ||||||||||||
Other private equity fund | 6,291 | 6,291 | 11,367 | 11,367 | ||||||||||||
Total venture capital and private equity fund investments | $ | 658,409 | $ | 76,541 | $ | 611,824 | $ | 77,674 |
(2) | The following table shows the amounts of other venture capital investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at September 30, 2012 and December 31, 2011: |
September 30, 2012 | December 31, 2011 | |||||||||||||||
(Dollars in thousands) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||
Silicon Valley BancVentures, LP | $ | 16,737 | $ | 1,790 | $ | 17,878 | $ | 1,912 | ||||||||
SVB Capital Partners II, LP | 55,686 | 2,828 | 61,099 | 3,103 | ||||||||||||
SVB India Capital Partners I, LP | 42,713 | 6,144 | 42,832 | 6,162 | ||||||||||||
SVB Capital Shanghai Yangpu Venture Capital Fund | 3,486 | 236 | 2,312 | 156 | ||||||||||||
Total other venture capital investments | $ | 118,622 | $ | 10,998 | $ | 124,121 | $ | 11,333 |
September 30, 2012 | December 31, 2011 | |||||||||||||
(Dollars in thousands) | Amount | Percentage | Amount | Percentage | ||||||||||
Commercial loans: | ||||||||||||||
Software | $ | 2,983,420 | 36.1 | % | $ | 2,517,890 | 35.8 | % | ||||||
Hardware | 1,205,059 | 14.6 | 961,869 | 13.7 | ||||||||||
Venture capital/private equity | 1,408,346 | 17.0 | 1,128,520 | 16.1 | ||||||||||
Life science | 1,038,327 | 12.6 | 872,413 | 12.4 | ||||||||||
Premium wine | 135,194 | 1.6 | 131,552 | 1.9 | ||||||||||
Other | 313,177 | 3.8 | 345,588 | 4.9 | ||||||||||
Total commercial loans | 7,083,523 | 85.7 | 5,957,832 | 84.8 | ||||||||||
Real estate secured loans: | ||||||||||||||
Premium wine | 380,555 | 4.6 | 347,241 | 4.9 | ||||||||||
Consumer loans | 609,525 | 7.4 | 533,817 | 7.6 | ||||||||||
Total real estate secured loans | 990,080 | 12.0 | 881,058 | 12.5 | ||||||||||
Construction loans | 48,505 | 0.6 | 30,319 | 0.4 | ||||||||||
Consumer loans | 144,060 | 1.7 | 161,112 | 2.3 | ||||||||||
Total gross loans | $ | 8,266,168 | 100.0 | % | $ | 7,030,321 | 100.0 | % |
September 30, 2012 | ||||||||||||||||||||||||
(Dollars in thousands) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Software | $ | 962,244 | $ | 494,159 | $ | 597,429 | $ | 649,737 | $ | 279,851 | $ | 2,983,420 | ||||||||||||
Hardware | 309,492 | 226,336 | 215,746 | 189,473 | 264,012 | 1,205,059 | ||||||||||||||||||
Venture capital/private equity | 272,026 | 195,009 | 256,842 | 213,924 | 470,545 | 1,408,346 | ||||||||||||||||||
Life science | 261,927 | 230,260 | 193,432 | 198,668 | 154,040 | 1,038,327 | ||||||||||||||||||
Premium wine (1) | 67,835 | 37,129 | 24,230 | 6,000 | — | 135,194 | ||||||||||||||||||
Other | 116,116 | 53,993 | 86,049 | 25,440 | 31,579 | 313,177 | ||||||||||||||||||
Commercial loans | 1,989,640 | 1,236,886 | 1,373,728 | 1,283,242 | 1,200,027 | 7,083,523 | ||||||||||||||||||
Real estate secured loans: | ||||||||||||||||||||||||
Premium wine (1) | 109,090 | 94,323 | 102,799 | 42,843 | 31,500 | 380,555 | ||||||||||||||||||
Consumer loans (2) | 512,339 | 53,513 | 43,673 | — | — | 609,525 | ||||||||||||||||||
Real estate secured loans | 621,429 | 147,836 | 146,472 | 42,843 | 31,500 | 990,080 | ||||||||||||||||||
Construction loans | 17,516 | 30,989 | — | — | — | 48,505 | ||||||||||||||||||
Consumer loans (2) | 48,698 | 50,362 | — | — | 45,000 | 144,060 | ||||||||||||||||||
Total gross loans | $ | 2,677,283 | $ | 1,466,073 | $ | 1,520,200 | $ | 1,326,085 | $ | 1,276,527 | $ | 8,266,168 |
(1) | Premium wine clients can have loan balances included in both commercial loans and real estate secured loans, the total of which are used for the breakout of the above categories. |
(2) | Consumer loan clients have loan balances included in both real estate secured loans and other consumer loans, the total of which are used for the breakout of the above categories. |
December 31, 2011 | ||||||||||||||||||||||||
(Dollars in thousands) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Software | $ | 764,200 | $ | 429,670 | $ | 578,248 | $ | 715,772 | $ | 30,000 | $ | 2,517,890 | ||||||||||||
Hardware | 306,557 | 166,619 | 133,505 | 116,305 | 238,883 | 961,869 | ||||||||||||||||||
Venture capital/private equity | 277,087 | 232,775 | 127,848 | 53,000 | 437,810 | 1,128,520 | ||||||||||||||||||
Life science | 251,921 | 140,786 | 187,874 | 171,702 | 120,130 | 872,413 | ||||||||||||||||||
Premium wine (1) | 69,418 | 13,971 | 42,763 | 5,400 | — | 131,552 | ||||||||||||||||||
Other | 90,110 | 14,915 | 82,849 | 45,435 | 112,279 | 345,588 | ||||||||||||||||||
Commercial loans | 1,759,293 | 998,736 | 1,153,087 | 1,107,614 | 939,102 | 5,957,832 | ||||||||||||||||||
Real estate secured loans: | ||||||||||||||||||||||||
Premium wine (1) | 119,708 | 75,161 | 75,247 | 45,625 | 31,500 | 347,241 | ||||||||||||||||||
Consumer loans (2) | 434,406 | 41,177 | 39,302 | 18,932 | — | 533,817 | ||||||||||||||||||
Real estate secured loans | 554,114 | 116,338 | 114,549 | 64,557 | 31,500 | 881,058 | ||||||||||||||||||
Construction loans | 7,581 | 22,738 | — | — | — | 30,319 | ||||||||||||||||||
Consumer loans (2) | 59,713 | 32,105 | 21,294 | 3,000 | 45,000 | 161,112 | ||||||||||||||||||
Total gross loans | $ | 2,380,701 | $ | 1,169,917 | $ | 1,288,930 | $ | 1,175,171 | $ | 1,015,602 | $ | 7,030,321 |
(1) | Premium wine clients can have loan balances included in both commercial loans and real estate secured loans, the total of which are used for the breakout of the above categories. |
(2) | Consumer loan clients have loan balances included in both real estate secured loans and other consumer loans, the total of which are used for the breakout of the above categories. |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | ||||||
Gross nonperforming, past due, and restructured loans: | ||||||||
Loans past due 90 days or more still accruing interest | $ | 5,000 | $ | — | ||||
Impaired loans | 39,397 | 36,617 | ||||||
Performing TDRs | 963 | 2,100 | ||||||
Nonperforming loans as a percentage of total gross loans | 0.48 | % | 0.52 | % | ||||
Nonperforming assets as a percentage of total assets | 0.18 | 0.18 | % | |||||
Allowance for loan losses | $ | 101,524 | $ | 89,947 | ||||
As a percentage of total gross loans | 1.23 | % | 1.28 | % | ||||
As a percentage of total gross nonperforming loans | 257.69 | 245.64 | ||||||
Allowance for loan losses for impaired loans | $ | 6,003 | $ | 3,707 | ||||
As a percentage of total gross loans | 0.07 | % | 0.05 | % | ||||
As a percentage of total gross nonperforming loans | 15.24 | 10.12 | ||||||
Allowance for loan losses for total gross performing loans | $ | 95,521 | $ | 86,240 | ||||
As a percentage of total gross loans | 1.16 | % | 1.23 | % | ||||
As a percentage of total gross performing loans | 1.16 | 1.23 | ||||||
Total gross loans | $ | 8,266,168 | $ | 7,030,321 | ||||
Total gross performing loans | 8,226,771 | 6,993,704 | ||||||
Reserve for unfunded credit commitments (1) | 23,075 | 21,811 | ||||||
As a percentage of total unfunded credit commitments | 0.26 | % | 0.27 | % | ||||
Total unfunded credit commitments (2) | $ | 8,710,228 | $ | 8,067,570 |
(1) | The “Reserve for unfunded credit commitments” is included as a component of other liabilities. See “Provision for Unfunded Credit Commitments” above for a discussion of the changes to the reserve. |
(2) | Includes unfunded loan commitments and letters of credit. |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | % Change | ||||||||
Derivative assets, gross (1) | $ | 94,578 | $ | 97,693 | (3.2 | )% | |||||
Accrued interest receivable | 62,441 | 58,108 | 7.5 | ||||||||
FHLB and FRB stock | 39,301 | 39,189 | 0.3 | ||||||||
Foreign exchange spot contract assets, gross | 37,769 | 86,610 | (56.4 | ) | |||||||
Accounts receivable | 15,470 | 49,076 | (68.5 | ) | |||||||
Prepaid FDIC assessments | 1,880 | 8,776 | (78.6 | ) | |||||||
Other assets | 48,155 | 37,402 | 28.7 | ||||||||
Total accrued interest receivable and other assets | $ | 299,594 | $ | 376,854 | (20.5 | ) |
(1) | See “Derivatives” section below. |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | % Change | ||||||||
Assets: | |||||||||||
Equity warrant assets | $ | 70,478 | $ | 66,953 | 5.3 | % | |||||
Foreign exchange forward and option contracts | 13,116 | 18,326 | (28.4 | ) | |||||||
Interest rate swaps | 9,508 | 11,441 | (16.9 | ) | |||||||
Loan conversion options | 1,240 | 923 | 34.3 | ||||||||
Client interest rate derivatives | 236 | 50 | NM | ||||||||
Total derivatives assets | $ | 94,578 | $ | 97,693 | (3.2 | ) | |||||
Liabilities: | |||||||||||
Foreign exchange forward and option contracts | $ | (12,476 | ) | $ | (16,816 | ) | (25.8 | ) | |||
Client interest rate derivatives | (247 | ) | (52 | ) | NM | ||||||
Total derivatives liabilities | $ | (12,723 | ) | $ | (16,868 | ) | (24.6 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Balance, beginning of period | $ | 74,405 | $ | 56,941 | $ | 66,953 | $ | 47,565 | ||||||||
New equity warrant assets | 3,649 | 3,090 | 10,803 | 10,386 | ||||||||||||
Non-cash (decreases) increases in fair value | (1,618 | ) | 3,532 | 6,205 | 13,088 | |||||||||||
Exercised equity warrant assets | (5,706 | ) | (4,654 | ) | (12,059 | ) | (10,826 | ) | ||||||||
Terminated equity warrant assets | (252 | ) | (386 | ) | (1,424 | ) | (1,690 | ) | ||||||||
Balance, end of period | $ | 70,478 | $ | 58,523 | $ | 70,478 | $ | 58,523 |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | % Change | ||||||||
Foreign exchange spot contract liabilities, gross | $ | 62,698 | $ | 152,727 | (58.9 | )% | |||||
Accrued compensation | 68,326 | 114,472 | (40.3 | ) | |||||||
Deferred tax liabilities | 45,179 | 7,975 | NA | ||||||||
Reserve for unfunded credit commitments | 23,075 | 21,811 | 5.8 | ||||||||
Derivative liabilities, gross (1) | 12,723 | 16,868 | (24.6 | ) | |||||||
Other | 118,037 | 91,468 | 29.0 | ||||||||
Total other liabilities | $ | 330,038 | $ | 405,321 | (18.6 | ) |
(1) | See “Derivatives” section above. |
September 30, 2012 | December 31, 2011 | |||||||||||||||
(Dollars in thousands) | Total Balance | Level 3 | Total Balance | Level 3 | ||||||||||||
Assets carried at fair value | $ | 11,924,755 | $ | 841,722 | $ | 11,372,081 | $ | 799,962 | ||||||||
As a percentage of total assets | 55.3 | % | 3.9 | % | 56.9 | % | 4.0 | % | ||||||||
Liabilities carried at fair value | $ | 12,723 | $ | — | $ | 16,868 | $ | — | ||||||||
As a percentage of total liabilities | 0.1 | % | — | % | 0.1 | % | — | % | ||||||||
Level 1 and 2 | Level 3 | Level 1 and 2 | Level 3 | |||||||||||||
Percentage of assets measured at fair value | 92.9 | % | 7.1 | % | 93.0 | % | 7.0 | % |
September 30, 2012 | December 31, 2011 | Minimum ratio to be “Well Capitalized” | Minimum ratio to be “Adequately Capitalized” | |||||||||
SVB Financial: | ||||||||||||
Total risk-based capital ratio (1) | 14.34 | % | 13.95 | % | 10.0 | % | 8.0 | % | ||||
Tier 1 risk-based capital ratio (1) | 13.07 | 12.62 | 6.0 | 4.0 | ||||||||
Tier 1 leverage ratio | 8.02 | 7.92 | N/A | 4.0 | ||||||||
Tangible common equity to tangible assets ratio (2)(3) | 8.27 | 7.86 | N/A | N/A | ||||||||
Tangible common equity to risk-weighted assets ratio (1)(2)(3) | 13.93 | 13.25 | N/A | N/A | ||||||||
Bank: | ||||||||||||
Total risk-based capital ratio (1) | 12.70 | % | 12.33 | % | 10.0 | % | 8.0 | % | ||||
Tier 1 risk-based capital ratio (1) | 11.41 | 10.96 | 6.0 | 4.0 | ||||||||
Tier 1 leverage ratio | 7.00 | 6.87 | 5.0 | 4.0 | ||||||||
Tangible common equity to tangible assets ratio (2)(3) | 7.61 | 7.18 | N/A | N/A | ||||||||
Tangible common equity to risk-weighted assets ratio (1)(2)(3) | 12.40 | 11.75 | N/A | N/A |
(1) | Our risk-weighted assets at September 30, 2012 reflect a refinement in our determination of certain unfunded credit commitments related to the contractual borrowing base. |
(2) | See below for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets. |
(3) | The FRB has not issued any minimum guidelines for the tangible common equity to tangible assets ratio or the tangible common equity to risk-weighted assets ratio. However, we believe these ratios provide meaningful supplemental information regarding our capital levels and are therefore provided above. |
SVB Financial | Bank | |||||||||||||||
Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios) | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | ||||||||||||
GAAP SVBFG stockholders’ equity | $ | 1,784,924 | $ | 1,569,392 | $ | 1,547,061 | $ | 1,346,854 | ||||||||
Less: | ||||||||||||||||
Intangible assets | — | 601 | — | — | ||||||||||||
Tangible common equity | $ | 1,784,924 | $ | 1,568,791 | $ | 1,547,061 | $ | 1,346,854 | ||||||||
GAAP Total assets | $ | 21,576,934 | $ | 19,968,894 | $ | 20,325,446 | $ | 18,758,813 | ||||||||
Less: | ||||||||||||||||
Intangible assets | — | 601 | — | — | ||||||||||||
Tangible assets | $ | 21,576,934 | $ | 19,968,293 | $ | 20,325,446 | $ | 18,758,813 | ||||||||
Risk-weighted assets (1) | $ | 12,812,798 | $ | 11,837,902 | $ | 12,478,371 | $ | 11,467,401 | ||||||||
Tangible common equity to tangible assets | 8.27 | % | 7.86 | % | 7.61 | % | 7.18 | % | ||||||||
Tangible common equity to risk-weighted assets | 13.93 | 13.25 | 12.40 | 11.75 |
(1) | Our risk-weighted assets at September 30, 2012 reflect a refinement in our determination of risk rating for certain unfunded credit commitments related to the contractual borrowing base. |
Nine months ended September 30, | ||||||||
(Dollars in thousands) | 2012 | 2011 | ||||||
Average cash and cash equivalents | $ | 1,416,699 | $ | 2,227,242 | ||||
Percentage of total average assets | 6.8 | % | 12.1 | % | ||||
Net cash provided by operating activities | $ | 125,665 | $ | 90,188 | ||||
Net cash used for investing activities | (1,811,355 | ) | (2,445,892 | ) | ||||
Net cash provided by financing activities | 1,477,422 | 1,321,244 | ||||||
Net decrease in cash and cash equivalents | $ | (208,268 | ) | $ | (1,034,460 | ) |
Estimated | Estimated Increase/ (Decrease) In EVE | Estimated | Estimated Increase/ (Decrease) In NII | |||||||||||||||||||
Change in interest rates (basis points) | EVE | Amount | Percent | NII | Amount | Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
September 30, 2012: | ||||||||||||||||||||||
+200 | $ | 3,085,140 | $ | 376,854 | 13.9 | $ | 776,270 | $ | 110,903 | 16.7 | % | |||||||||||
+100 | 2,799,547 | 91,261 | 3.4 | 713,433 | 48,066 | 7.2 | ||||||||||||||||
— | 2,708,286 | — | — | 665,367 | — | — | ||||||||||||||||
-100 | 2,888,214 | 179,928 | 6.6 | 636,084 | (29,283 | ) | (4.4 | ) | ||||||||||||||
-200 | 2,910,414 | 202,128 | 7.5 | 632,976 | (32,391 | ) | (4.9 | ) | ||||||||||||||
December 31, 2011: | ||||||||||||||||||||||
+200 | $ | 3,003,465 | $ | 508,947 | 20.4 | % | $ | 735,740 | $ | 106,717 | 17.0 | % | ||||||||||
+100 | 2,729,000 | 234,482 | 9.4 | 671,880 | 42,857 | 6.8 | ||||||||||||||||
— | 2,494,518 | — | — | 629,023 | — | — | ||||||||||||||||
-100 | 2,619,182 | 124,664 | 5.0 | 592,325 | (36,698 | ) | (5.8 | ) | ||||||||||||||
-200 | 2,626,452 | 131,934 | 5.3 | 583,214 | (45,809 | ) | (7.3 | ) |
SVB Financial Group | ||
Date: November 9, 2012 | /s/ MICHAEL DESCHENEAUX | |
Michael Descheneaux | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
SVB Financial Group | ||
Date: November 9, 2012 | /s/ KAMRAN HUSAIN | |
Kamran Husain | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||
Form | File No. | Exhibit | Filing Date | |||||||||
3.1 | Restated Certificate of Incorporation | 8-K | 000-15637 | 3.1 | May 31, 2005 | |||||||
3.2 | Amended and Restated Bylaws | 8-K | 000-15637 | 3.2 | July 27, 2010 | |||||||
3.3 | Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Preferred Stock | 8-K | 000-15637 | 3.3 | December 8, 2008 | |||||||
3.4 | Certificate of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series B | 8-K | 000-15637 | 3.4 | December 15, 2008 | |||||||
4.1 | Junior Subordinated Indenture, dated as of October 30, 2003 between SVB Financial and Wilmington Trust Company, as trustee | 8-K | 000-15637 | 4.12 | November 19, 2003 | |||||||
4.2 | 7.0% Junior Subordinated Deferrable Interest Debenture due October 15, 2033 of SVB Financial | 8-K | 000-15637 | 4.13 | November 19, 2003 | |||||||
4.3 | Amended and Restated Trust Agreement, dated as of October 30, 2003, by and among SVB Financial as depositor, Wilmington Trust Company as property trustee, Wilmington Trust Company as Delaware trustee, and the Administrative Trustees named therein | 8-K | 000-15637 | 4.14 | November 19, 2003 | |||||||
4.4 | Certificate Evidencing 7% Cumulative Trust Preferred Securities of SVB Capital II, dated October 30, 2003 | 8-K | 000-15637 | 4.15 | November 19, 2003 | |||||||
4.5 | Guarantee Agreement, dated October 30, 2003, between SVB Financial and Wilmington Trust Company, as trustee | 8-K | 000-15637 | 4.16 | November 19, 2003 | |||||||
4.6 | Agreement as to Expenses and Liabilities, dated as of October 30, 2003, between SVB Financial and SVB Capital II | 8-K | 000-15637 | 4.17 | November 19, 2003 | |||||||
4.7 | Certificate Evidencing 7% Common Securities of SVB Capital II, dated October 30, 2003 | 8-K | 000-15637 | 4.18 | November 19, 2003 | |||||||
4.8 | Officers’ Certificate and Company Order, dated October 30, 2003, relating to the 7.0% Junior Subordinated Deferrable Interest Debentures due October 15, 2033 | 8-K | 000-15637 | 4.19 | November 19, 2003 | |||||||
4.9 | Amended and Restated Preferred Stock Rights Agreement, dated as of January 29, 2004, between SVB Financial and Wells Fargo Bank Minnesota, N.A. | 8-A12G/A | 000-15637 | 4.20 | February 27, 2004 | |||||||
4.10 | Amendment No. 1 to Amended & Restated Preferred Stock Rights Agreement, dated as of August 2, 2004, by and between SVB Financial and Wells Fargo Bank, N.A. | 8-A12G/A | 000-15637 | 4.13 | August 3, 2004 | |||||||
4.11 | Amendment No. 2 to Amended & Restated Preferred Stock Rights Agreement, dated as of January 29, 2008, by and between SVB Financial and Wells Fargo Bank, N.A. | 8-A/A | 000-15637 | 4.14 | January 29, 2008 | |||||||
4.12 | Amendment No. 3 to Amended and Restated Preferred Stock Rights Agreement, dated as of April 30, 2008, by and between SVB Financial and Wells Fargo Bank, N.A | 8-A/A | 000-15637 | 4.20 | April 30, 2008 |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||
Form | File No. | Exhibit | Filing Date | |||||||||
4.13 | Amendment No. 4 to Amended and Restated Preferred Stock Rights Agreement, dated as of January 15, 2010, by and between SVB Financial, Wells Fargo Bank, N.A. and American Stock Transfer & Trust Company, LLC | 8-A/A | 000-15637 | 4.22 | January 19, 2010 | |||||||
4.14 | Indenture, dated September 20, 2010, by and between SVB Financial Group and U.S. Bank National Association, as trustee | 8-K | 000-15637 | 4.1 | September 20, 2010 | |||||||
4.15 | Form of 5.375% Senior Note due 2020 | 8-K | 000-15637 | 4.2 | September 20, 2010 | |||||||
31.1 | Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Executive Officer | X | ||||||||||
31.2 | Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Financial Officer | X | ||||||||||
32.1 | Section 1350 Certifications | ** | ||||||||||
101.INS | XBRL Instance Document | X | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X |
* | Denotes management contract or any compensatory plan, contract or arrangement. |
** | Furnished herewith |
1. | I have reviewed this Quarterly Report on Form 10-Q of SVB Financial Group; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 9, 2012 | /s/ GREG BECKER | |
Greg Becker | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of SVB Financial Group; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 9, 2012 | /s/ MICHAEL DESCHENEAUX | |
Michael Descheneaux | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Date: November 9, 2012 | /s/ GREG BECKER | |
Greg Becker | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
Date: November 9, 2012 | /s/ MICHAEL DESCHENEAUX | |
Michael Descheneaux | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Unrecognized Share-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Unrecognized Share Based Compensation Expense [Line Items] | |
Unrecognized Expense | $ 43,970 |
Stock option
|
|
Unrecognized Share Based Compensation Expense [Line Items] | |
Unrecognized Expense | 17,308 |
Average Expected Recognition Period - in Years | 2 years 9 months 18 days |
Restricted stock units
|
|
Unrecognized Share Based Compensation Expense [Line Items] | |
Unrecognized Expense | $ 26,662 |
Average Expected Recognition Period - in Years | 2 years 9 months 22 days |
Composition of Loans, Net of Unearned income (Parenthetical) (Detail) (USD $)
|
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | $ 8,192,369,000 | [1] | $ 6,970,082,000 | [1] | ||||
Credit Card Receivable
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and Leases Receivable, Gross | 66,200,000 | 49,700,000 | ||||||
Consumer Portfolio Segment [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 752,976,000 | 695,138,000 | ||||||
Real estate secured loans | Consumer Portfolio Segment [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 609,370,000 | [2] | 534,001,000 | [2] | ||||
Real estate secured loans | Consumer Portfolio Segment [Member] | Loans for personal residence
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 432,004,000 | 350,359,000 | ||||||
Real estate secured loans | Consumer Portfolio Segment [Member] | Loans to eligible employees
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 107,969,000 | 99,704,000 | ||||||
Real estate secured loans | Consumer Portfolio Segment [Member] | Home equity lines of credit
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 69,397,000 | 83,938,000 | ||||||
Premium wine | Consumer Portfolio Segment [Member]
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans Receivable, Gross, Commercial, Construction | $ 148,400,000 | $ 110,800,000 | ||||||
|
Summary of Unrealized Losses on Available for Sale Securities (Parenthetical) (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
Investment
|
Dec. 31, 2011
|
---|---|---|
Investments, Unrealized Loss Position [Line Items] | ||
Number of investments in unrealized loss positions | 10 | |
Number of investment with unrealized losses | 3 | |
Investments that were in unrealized loss position | $ 250 | $ 0 |
Unrealized Losses on Investments | $ 194 | $ 0 |
Total Notional or Contractual Amounts, Fair Value, Collateral and Net Exposure of Derivative Financial Instruments (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Derivative [Line Items] | ||||||||
Net Exposure Derivative Instruments | $ 75,685 | [1] | $ 80,825 | [1] | ||||
Fair value | 81,855 | 80,825 | ||||||
Collateral | 6,170 | [2] | 0 | [2] | ||||
Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 45,964 | 187,393 | ||||||
Fair value | 9,508 | 11,441 | ||||||
Collateral | 6,170 | [2] | 0 | [2] | ||||
Net Exposure | 3,338 | [1] | 11,441 | [1] | ||||
Derivatives not designated as hedging instruments | Currency exchange risks
|
||||||||
Derivative [Line Items] | ||||||||
Fair value | (825) | 315 | ||||||
Net Exposure Derivative Instruments | (825) | [1] | 315 | [1] | ||||
Derivatives not designated as hedging instruments | Currency exchange risks | Foreign exchange forwards | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 23,441 | 68,518 | ||||||
Fair value | 548 | 514 | ||||||
Net Exposure | 548 | [1] | 514 | [1] | ||||
Derivatives not designated as hedging instruments | Currency exchange risks | Foreign exchange forwards | Other liability
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 38,593 | 6,822 | ||||||
Fair value | (1,373) | (199) | ||||||
Net Exposure Derivative Instruments Liablities | (1,373) | [1] | (199) | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Equity Warrant Asset | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 162,471 | 144,586 | ||||||
Fair value | 70,478 | 66,953 | ||||||
Net Exposure | 70,478 | [1] | 66,953 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives
|
||||||||
Derivative [Line Items] | ||||||||
Fair value | 2,694 | 2,116 | ||||||
Net Exposure Derivative Instruments | 2,694 | [1] | 2,116 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Foreign exchange forwards | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 419,005 | 387,714 | ||||||
Fair value | 11,581 | 17,541 | ||||||
Net Exposure | 11,581 | [1] | 17,541 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Foreign exchange forwards | Other liability
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 393,426 | 366,835 | ||||||
Fair value | (10,116) | (16,346) | ||||||
Net Exposure Derivative Instruments Liablities | (10,116) | [1] | (16,346) | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Foreign currency options | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 127,379 | 75,600 | ||||||
Fair value | 987 | 271 | ||||||
Net Exposure | (987) | [1] | 271 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Foreign currency options | Other liability
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 127,379 | 75,600 | ||||||
Fair value | (987) | (271) | ||||||
Net Exposure Derivative Instruments Liablities | (987) | [1] | (271) | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Loan conversion options | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 9,778 | 14,063 | ||||||
Fair value | 1,240 | 923 | ||||||
Net Exposure | 1,240 | [1] | 923 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Client interest rate derivatives | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 62,120 | 39,713 | ||||||
Fair value | 236 | 50 | ||||||
Net Exposure | 236 | [1] | 50 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Client interest rate derivatives | Other liability
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 62,120 | 39,713 | ||||||
Fair value | (247) | (52) | ||||||
Net Exposure Derivative Instruments Liablities | $ (247) | [1] | $ (52) | [1] | ||||
|
Composition of Loans, Net of Unearned Income, Broken Out by Portfolio Segment and Class of Financing Receivable (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | $ 8,192,369 | [1] | $ 6,970,082 | [1] | ||||
Commercial Portfolio Segment [Member]
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 7,439,393 | 6,274,944 | ||||||
Commercial Portfolio Segment [Member] | Software
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 2,952,866 | 2,492,849 | ||||||
Commercial Portfolio Segment [Member] | Hardware
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 1,192,716 | 952,303 | ||||||
Commercial Portfolio Segment [Member] | Venture capital/private equity
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 1,393,943 | 1,117,419 | ||||||
Commercial Portfolio Segment [Member] | Life science
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 1,027,693 | 863,737 | ||||||
Commercial Portfolio Segment [Member] | Premium wine
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 513,647 | 476,233 | ||||||
Commercial Portfolio Segment [Member] | Commercial Other Financing Receivable
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 358,528 | 372,403 | ||||||
Consumer Portfolio Segment [Member]
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 752,976 | 695,138 | ||||||
Consumer Portfolio Segment [Member] | Real estate secured loans
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | 609,370 | [2] | 534,001 | [2] | ||||
Consumer Portfolio Segment [Member] | Consumer Other Financing Receivable
|
||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||
Loans, net of unearned income | $ 143,606 | $ 161,137 | ||||||
|
Segment Information (Parenthetical) (Detail) (Global Commercial Bank, USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Global Commercial Bank
|
||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 4.5 | $ 3.1 | $ 11.6 | $ 8.7 |
Major Components of Investment Securities Portfolio (Parenthetical) (Detail) (USD $)
|
9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
Fair value accounting
Other venture capital investments
|
Dec. 31, 2011
Fair value accounting
Other venture capital investments
|
Sep. 30, 2012
Fair value accounting
Other investments
|
Dec. 31, 2011
Fair value accounting
Other investments
|
Sep. 30, 2012
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
Equity method accounting
Other investments
|
Dec. 31, 2011
Equity method accounting
Other investments
|
Sep. 30, 2012
Cost method accounting
Other investments
|
Dec. 31, 2011
Cost method accounting
Other investments
|
Sep. 30, 2012
Cost method accounting
Venture capital and private equity fund investments
Investment
|
Dec. 31, 2011
Cost method accounting
Venture capital and private equity fund investments
Investment
|
Sep. 30, 2012
SVB Capital-NT Growth Partners, LP
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
SVB Capital-NT Growth Partners, LP
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Capital Partners II, LP
Fair value accounting
Other venture capital investments
|
Dec. 31, 2011
SVB Capital Partners II, LP
Fair value accounting
Other venture capital investments
|
Sep. 30, 2012
SVB Capital Partners II, LP
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
SVB Capital Partners II, LP
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Capital Partners II, LP
Fair value accounting
Direct ownership interest
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Capital Partners II, LP
Fair value accounting
Indirect ownership interest
Venture capital and private equity fund investments
|
Sep. 30, 2012
Other private equity fund
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
Other private equity fund
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
Other private equity fund
Fair value accounting
Direct ownership interest
Venture capital and private equity fund investments
|
Sep. 30, 2012
Gold Hill Venture Lending 03, LP
Equity method accounting
Other investments
|
Dec. 31, 2011
Gold Hill Venture Lending 03, LP
Equity method accounting
Other investments
|
Sep. 30, 2012
Gold Hill Venture Lending 03, LP
Equity method accounting
Direct ownership interest
Other investments
|
Sep. 30, 2012
Gold Hill Venture Lending 03, LP
Equity method accounting
Indirect ownership interest
Other investments
|
Sep. 30, 2012
Gold Hill Capital 2008, LP
Equity method accounting
Other investments
|
Dec. 31, 2011
Gold Hill Capital 2008, LP
Equity method accounting
Other investments
|
Sep. 30, 2012
Gold Hill Capital 2008, LP
Equity method accounting
Direct ownership interest
Other investments
|
Sep. 30, 2012
Gold Hill Capital 2008, LP
Equity method accounting
Indirect ownership interest
Other investments
|
Sep. 30, 2012
SVB Strategic Investors Fund, LP
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
SVB Strategic Investors Fund, LP
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Strategic Investors Fund II, LP
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
SVB Strategic Investors Fund II, LP
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Strategic Investors Fund III, LP
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
SVB Strategic Investors Fund III, LP
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Strategic Investors Fund IV, LP
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
SVB Strategic Investors Fund IV, LP
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
Strategic Investors Fund V, LP
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
Strategic Investors Fund V, LP
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Capital Preferred Return Fund, LP
Fair value accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
SVB Capital Preferred Return Fund, LP
Fair value accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
Silicon Valley BancVentures, LP
Fair value accounting
Other venture capital investments
|
Dec. 31, 2011
Silicon Valley BancVentures, LP
Fair value accounting
Other venture capital investments
|
Sep. 30, 2012
SVB India Capital Partners I, LP
Fair value accounting
Other venture capital investments
|
Dec. 31, 2011
SVB India Capital Partners I, LP
Fair value accounting
Other venture capital investments
|
Sep. 30, 2012
SVB Capital Shanghai Yangpu Venture Capital Fund
Fair value accounting
Other venture capital investments
|
Dec. 31, 2011
SVB Capital Shanghai Yangpu Venture Capital Fund
Fair value accounting
Other venture capital investments
|
Sep. 30, 2012
Partners for Growth II, LP
Equity method accounting
Other investments
|
Dec. 31, 2011
Partners for Growth II, LP
Equity method accounting
Other investments
|
May 03, 2012
China Joint Venture Investment
Equity method accounting
Other investments
|
Sep. 30, 2012
China Joint Venture Investment
Equity method accounting
Other investments
|
Dec. 31, 2011
China Joint Venture Investment
Equity method accounting
Other investments
|
Sep. 30, 2012
Other investment
Equity method accounting
Other investments
|
Dec. 31, 2011
Other investment
Equity method accounting
Other investments
|
Sep. 30, 2012
Upper Limit
Cost method accounting
Venture capital and private equity fund investments
|
Dec. 31, 2011
Upper Limit
Cost method accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
Other Than Temporarily Impaired Securities
Cost method accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
Other Than Temporarily Impaired Securities
Cost method accounting
Venture capital and private equity fund investments
Investment
|
Sep. 30, 2012
Estimated Fair Value
Cost method accounting
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Capital-NT Growth Partners, LP
Other private equity fund
Fair value accounting
Indirect ownership interest
Venture capital and private equity fund investments
|
Sep. 30, 2012
SVB Capital Preferred Return Fund, LP
Other private equity fund
Fair value accounting
Indirect ownership interest
Venture capital and private equity fund investments
|
|||||||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-marketable securities | $ 118,622,000 | [1] | $ 124,121,000 | [1] | $ 0 | $ 987,000 | $ 658,409,000 | [2] | $ 611,824,000 | [2] | $ 61,253,000 | $ 43,958,000 | $ 55,686,000 | [3] | $ 61,099,000 | [3] | $ 1,341,000 | [4] | $ 2,390,000 | [4] | $ 6,291,000 | [5] | $ 11,367,000 | [5] | $ 35,963,000 | $ 39,567,000 | $ 103,302,000 | $ 122,619,000 | $ 208,809,000 | $ 218,429,000 | $ 161,082,000 | $ 122,076,000 | $ 8,838,000 | $ 28,908,000 | $ 51,460,000 | $ 42,580,000 | $ 16,737,000 | $ 17,878,000 | $ 42,713,000 | $ 42,832,000 | $ 3,486,000 | $ 2,312,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of ownership | 33.00% | 33.00% | 5.10% | [3] | 5.10% | [3] | 5.10% | [4] | 5.10% | [4] | 1.30% | 3.80% | 58.20% | [5] | 58.20% | [5] | 41.50% | 9.30% | [6] | 9.30% | [6] | 4.80% | 4.50% | 15.50% | [7] | 15.50% | [7] | 11.50% | 4.00% | 12.60% | 12.60% | 8.60% | 8.60% | 5.90% | 5.90% | 5.00% | 5.00% | 0.30% | 20.00% | 20.00% | 10.70% | 10.70% | 14.40% | 14.40% | 6.80% | 6.80% | 24.20% | 24.20% | 50.00% | [8] | 0.00% | [8] | 5.00% | 5.00% | 12.60% | 4.10% | |||||||||||||||||||||||||||||||||||||||||||||||
Non-marketable securities | 141,761,000 | [9] | 68,252,000 | [9] | 9,187,000 | [6] | 16,072,000 | [6] | 20,491,000 | [7] | 19,328,000 | [7] | 3,199,000 | 3,785,000 | 78,484,000 | [8] | 0 | [8] | 30,400,000 | 29,067,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution in joint venture | 79,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of investments | 325 | 329 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized other-than-temporary impairment (OTTI) losses | 400,000 | 900,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of impaired investments | 43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-marketable securities | $ 19,942,000 | $ 19,355,000 | $ 158,275,000 | [10] | $ 145,007,000 | [10] | $ 190,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Off-Balance Sheet Arrangements, Guarantees and Other Commitments (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Information Related to Commitments to Extend Credit (Excluding Letters of Credit) | The following table summarizes information related to our commitments to extend credit at September 30, 2012 and December 31, 2011:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Commercial and Standby Letters of Credit | The table below summarizes our commercial and standby letters of credit at September 30, 2012. The maximum potential amount of future payments represents the amount that could be remitted under letters of credit if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or from the collateral held or pledged.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Commitments, Unfunded Capital Commitments, and Ownership in Each Fund | The following table details our total capital commitments, unfunded capital commitments, and our ownership percentage in each fund at September 30, 2012:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Unfunded Commitments to Venture Capital or Private Equity Funds by Consolidated Managed Funds | The following table details the amounts of remaining unfunded commitments to venture capital and private equity funds by our consolidated managed funds of funds (including our interest and the noncontrolling interests) at September 30, 2012:
|
Summary Information Related to Commitments to Extend Credit (Excluding Letters of Credit) (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Disclosure Summary Information Related To Commitments To Extend Credit [Abstract] | ||||||||||||
Fixed interest rate commitments | $ 855,885 | [1] | $ 658,377 | [1] | ||||||||
Variable interest rate commitments | 6,965,078 | [1] | 6,548,002 | [1] | ||||||||
Total loan commitments available for funding | 7,820,963 | [1] | 7,206,379 | [1] | ||||||||
Commercial and standby letters of credit | 889,265 | [2] | 861,191 | [2] | ||||||||
Total unfunded credit commitments | 8,710,228 | 8,067,570 | ||||||||||
Commitments unavailable for funding | 994,888 | 841,439 | ||||||||||
Maximum lending limits for accounts receivable factoring arrangements | 888,463 | [3] | 747,392 | [3] | ||||||||
Reserve for unfunded credit commitments | $ 23,075 | [4] | $ 21,811 | [4] | ||||||||
|
Summary of Other Noninterest Income (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|||||||||
Disclosure Summary Of Other Noninterest Income [Abstract] | ||||||||||||
Unused commitment fees | $ 2,579 | $ 1,900 | $ 9,312 | $ 5,194 | ||||||||
Fund management fees | 2,496 | 2,671 | 8,448 | 8,022 | ||||||||
Service-based fee income | 1,651 | 2,339 | 6,197 | 7,151 | ||||||||
Net gains on the sale of certain assets related to our equity management services business | 0 | 0 | 4,243 | 0 | ||||||||
Loan syndication fees | 1,353 | 50 | 2,853 | 920 | ||||||||
Currency revaluation losses | 845 | [1] | (1,551) | [1] | (88) | [1] | (2,672) | [1] | ||||
Foreign Currency Transaction Gain (Loss) Foreign Currency Instruments | 1,578 | [2] | (3,931) | [2] | 96 | [2] | (733) | [2] | ||||
Other | 2,921 | 1,630 | 8,104 | 5,502 | ||||||||
Total other noninterest income | $ 13,423 | $ 3,108 | $ 39,165 | $ 23,384 | ||||||||
|
Impaired Loans and Allowance for Loan Losses, Broken out by Portfolio Segment and Class of Financing Receivable (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | $ 39,397 | $ 36,617 |
Total unpaid principal of impaired loans | 64,728 | 48,958 |
Commercial loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 35,769 | 15,201 |
Total unpaid principal of impaired loans | 55,950 | 23,351 |
Commercial loans | Software
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 2,816 | 1,142 |
Total unpaid principal of impaired loans | 3,324 | 1,540 |
Commercial loans | Hardware
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 27,129 | 5,183 |
Total unpaid principal of impaired loans | 42,415 | 8,843 |
Commercial loans | Life science
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 0 | 311 |
Total unpaid principal of impaired loans | 0 | 523 |
Commercial loans | Premium wine
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 3,079 | 3,212 |
Total unpaid principal of impaired loans | 3,317 | 3,341 |
Commercial loans | Commercial Other Financing Receivable
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 2,745 | 5,353 |
Total unpaid principal of impaired loans | 6,894 | 9,104 |
Consumer loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 3,628 | 21,416 |
Total unpaid principal of impaired loans | 8,778 | 25,607 |
Consumer loans | Real estate secured loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 2,408 | 18,283 |
Total unpaid principal of impaired loans | 7,407 | 22,410 |
Consumer loans | Consumer Other Financing Receivable
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 1,220 | 3,133 |
Total unpaid principal of impaired loans | 1,371 | 3,197 |
Impaired loans for which there is no related allowance for loan losses
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 8,294 | 23,285 |
Impaired loans for which there is no related allowance for loan losses | Commercial loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 6,006 | 5,002 |
Impaired loans for which there is no related allowance for loan losses | Commercial loans | Software
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 182 | 0 |
Impaired loans for which there is no related allowance for loan losses | Commercial loans | Hardware
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 0 | 429 |
Impaired loans for which there is no related allowance for loan losses | Commercial loans | Life science
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 0 | 311 |
Impaired loans for which there is no related allowance for loan losses | Commercial loans | Premium wine
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 3,079 | 3,212 |
Impaired loans for which there is no related allowance for loan losses | Commercial loans | Commercial Other Financing Receivable
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 2,745 | 1,050 |
Impaired loans for which there is no related allowance for loan losses | Consumer loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 2,288 | 18,283 |
Impaired loans for which there is no related allowance for loan losses | Consumer loans | Real estate secured loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 2,288 | 18,283 |
Impaired loans for which there is no related allowance for loan losses | Consumer loans | Consumer Other Financing Receivable
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 0 | 0 |
Impaired loans for which there is a related allowance for loan losses
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 31,103 | 13,332 |
Impaired loans for which there is a related allowance for loan losses | Commercial loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 29,763 | 10,199 |
Impaired loans for which there is a related allowance for loan losses | Commercial loans | Software
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 2,634 | 1,142 |
Impaired loans for which there is a related allowance for loan losses | Commercial loans | Hardware
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 27,129 | 4,754 |
Impaired loans for which there is a related allowance for loan losses | Commercial loans | Life science
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 0 | 0 |
Impaired loans for which there is a related allowance for loan losses | Commercial loans | Premium wine
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 0 | 0 |
Impaired loans for which there is a related allowance for loan losses | Commercial loans | Commercial Other Financing Receivable
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 0 | 4,303 |
Impaired loans for which there is a related allowance for loan losses | Consumer loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 1,340 | 3,133 |
Impaired loans for which there is a related allowance for loan losses | Consumer loans | Real estate secured loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | 120 | 0 |
Impaired loans for which there is a related allowance for loan losses | Consumer loans | Consumer Other Financing Receivable
|
||
Financing Receivable, Impaired [Line Items] | ||
Carrying value of impaired loans | $ 1,220 | $ 3,133 |
Segment Reporting - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | 3 Months Ended | 9 Months Ended |
---|---|---|---|
Sep. 30, 2012
Segment
|
Sep. 30, 2011
Global Commercial Bank
|
Sep. 30, 2011
Global Commercial Bank
|
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | ||
Certain changes to the items reported, effect on total net interest income | $ 18.6 | $ 52.9 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | $ 11,047,730 | $ 10,536,046 | ||||||||||
Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 9,508 | 11,441 | ||||||||||
Derivatives not designated as hedging instruments | Other derivative instruments | Equity warrant asset | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 70,478 | 66,953 | ||||||||||
Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 658,409 | [1] | 611,824 | [1] | ||||||||
Fair value accounting | Other venture capital investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 118,622 | [2] | 124,121 | [2] | ||||||||
Fair value accounting | Other investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | 987 | ||||||||||
U.S. treasury securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 25,429 | 25,964 | ||||||||||
U.S. agency debentures
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 2,936,150 | 2,874,932 | ||||||||||
Residential mortgage-backed securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 1,590,582 | 1,564,286 | ||||||||||
Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Fixed rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 4,168,125 | 3,373,760 | ||||||||||
Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Variable rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 1,939,799 | 2,413,378 | ||||||||||
Agency-issued commercial mortgage-backed securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 279,507 | 178,693 | ||||||||||
Municipal bonds and notes
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 100,221 | 100,498 | ||||||||||
Equity securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 7,917 | 4,535 | ||||||||||
Fair Value, Measurements, Recurring
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 11,047,730 | 10,536,046 | ||||||||||
Other assets - marketable securities | 5,416 | 1,410 | ||||||||||
Total assets | 11,924,755 | [3] | 11,372,081 | [4] | ||||||||
Total liabilities | 12,723 | 16,868 | ||||||||||
Fair Value, Measurements, Recurring | Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 9,508 | 11,441 | ||||||||||
Fair Value, Measurements, Recurring | Derivatives not designated as hedging instruments | Currency exchange risks | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 13,116 | 18,326 | ||||||||||
Fair Value, Measurements, Recurring | Derivatives not designated as hedging instruments | Currency exchange risks | Other liability
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 12,476 | 16,816 | ||||||||||
Fair Value, Measurements, Recurring | Derivatives not designated as hedging instruments | Other derivative instruments | Equity warrant asset | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 70,478 | 66,953 | ||||||||||
Fair Value, Measurements, Recurring | Derivatives not designated as hedging instruments | Other derivative instruments | Loan conversion options | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 1,240 | 923 | ||||||||||
Fair Value, Measurements, Recurring | Derivatives not designated as hedging instruments | Other derivative instruments | Client interest rate derivatives | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 236 | 50 | ||||||||||
Fair Value, Measurements, Recurring | Derivatives not designated as hedging instruments | Other derivative instruments | Client interest rate derivatives | Other liability
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 247 | 52 | ||||||||||
Fair Value, Measurements, Recurring | Fair value accounting
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 777,031 | 736,932 | ||||||||||
Fair Value, Measurements, Recurring | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 658,409 | 611,824 | ||||||||||
Fair Value, Measurements, Recurring | Fair value accounting | Other venture capital investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 118,622 | 124,121 | ||||||||||
Fair Value, Measurements, Recurring | Fair value accounting | Other investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 987 | |||||||||||
Fair Value, Measurements, Recurring | U.S. treasury securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 25,429 | 25,964 | ||||||||||
Fair Value, Measurements, Recurring | U.S. agency debentures
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 2,936,150 | 2,874,932 | ||||||||||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 1,590,582 | 1,564,286 | ||||||||||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Fixed rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 4,168,125 | 3,373,760 | ||||||||||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Variable rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 1,939,799 | 2,413,378 | ||||||||||
Fair Value, Measurements, Recurring | Agency-issued commercial mortgage-backed securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 279,507 | 178,693 | ||||||||||
Fair Value, Measurements, Recurring | Municipal bonds and notes
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 100,221 | 100,498 | ||||||||||
Fair Value, Measurements, Recurring | Equity securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 7,917 | 4,535 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 7,917 | 4,535 | ||||||||||
Other assets - marketable securities | 3,807 | 1,410 | ||||||||||
Total assets | 11,724 | [3] | 5,945 | [4] | ||||||||
Total liabilities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives not designated as hedging instruments | Currency exchange risks | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives not designated as hedging instruments | Currency exchange risks | Other liability
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives not designated as hedging instruments | Other derivative instruments | Equity warrant asset | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives not designated as hedging instruments | Other derivative instruments | Loan conversion options | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives not designated as hedging instruments | Other derivative instruments | Client interest rate derivatives | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives not designated as hedging instruments | Other derivative instruments | Client interest rate derivatives | Other liability
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value accounting
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value accounting | Other venture capital investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value accounting | Other investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | |||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasury securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. agency debentures
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Fixed rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Variable rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency-issued commercial mortgage-backed securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds and notes
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 7,917 | 4,535 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 11,039,813 | 10,531,511 | ||||||||||
Other assets - marketable securities | 1,609 | 0 | ||||||||||
Total assets | 11,071,309 | [3] | 10,566,174 | [4] | ||||||||
Total liabilities | 12,723 | 16,868 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 9,508 | 11,441 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives not designated as hedging instruments | Currency exchange risks | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 13,116 | 18,326 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives not designated as hedging instruments | Currency exchange risks | Other liability
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 12,476 | 16,816 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives not designated as hedging instruments | Other derivative instruments | Equity warrant asset | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 5,787 | 3,923 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives not designated as hedging instruments | Other derivative instruments | Loan conversion options | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 1,240 | 923 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives not designated as hedging instruments | Other derivative instruments | Client interest rate derivatives | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 236 | 50 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives not designated as hedging instruments | Other derivative instruments | Client interest rate derivatives | Other liability
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 247 | 52 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair value accounting
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair value accounting | Other venture capital investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair value accounting | Other investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 0 | |||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. treasury securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 25,429 | 25,964 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. agency debentures
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 2,936,150 | 2,874,932 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 1,590,582 | 1,564,286 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Fixed rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 4,168,125 | 3,373,760 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Variable rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 1,939,799 | 2,413,378 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Agency-issued commercial mortgage-backed securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 279,507 | 178,693 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal bonds and notes
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 100,221 | 100,498 | ||||||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Other assets - marketable securities | 0 | 0 | ||||||||||
Total assets | 841,722 | [3] | 799,962 | [4] | ||||||||
Total liabilities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives not designated as hedging instruments | Currency exchange risks | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives not designated as hedging instruments | Currency exchange risks | Other liability
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives not designated as hedging instruments | Other derivative instruments | Equity warrant asset | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 64,691 | 63,030 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives not designated as hedging instruments | Other derivative instruments | Loan conversion options | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives not designated as hedging instruments | Other derivative instruments | Client interest rate derivatives | Other assets
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives not designated as hedging instruments | Other derivative instruments | Client interest rate derivatives | Other liability
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Fair value | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fair value accounting
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 777,031 | 736,932 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 658,409 | 611,824 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fair value accounting | Other venture capital investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 118,622 | 124,121 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fair value accounting | Other investments
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Non-marketable securities | 987 | |||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. treasury securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. agency debentures
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Fixed rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Variable rate
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Agency-issued commercial mortgage-backed securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal bonds and notes
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity securities
|
||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Available-for-sale securities | $ 0 | $ 0 | ||||||||||
|
Off-Balance Sheet Arrangements, Guarantees and Other Commitments - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2012
Venture capital and private equity fund investments
|
Sep. 30, 2012
Venture capital and private equity fund investments
Lower Limit
|
Sep. 30, 2012
Venture capital and private equity fund investments
Upper Limit
|
Sep. 30, 2012
Standby Letter of Credit
|
Dec. 31, 2011
Standby Letter of Credit
|
|
Commitments and Contingencies Disclosure [Line Items] | |||||
Deferred fees | $ 5.0 | $ 6.1 | |||
Collateral in the form of cash | 347.7 | ||||
Collateral in the form of investment securities | $ 13.2 | ||||
Commitments to invest, period from the inception of the fund | 10 years | ||||
Expected commitment period to invest in venture capital and private equity funds (in years) | 5 years | 7 years |
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) (Fair Value, Measurements, Recurring, USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total assets | $ 11,924,755 | [1] | $ 11,372,081 | [2] | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total assets | 11,724 | [1] | 5,945 | [2] | ||||
Significant Unobservable Inputs (Level 3)
|
||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total assets | 841,722 | [1] | 799,962 | [2] | ||||
Significant Other Observable Inputs (Level 2)
|
||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total assets | 11,071,309 | [1] | 10,566,174 | [2] | ||||
Noncontrolling Interest | Quoted Prices in Active Markets for Identical Assets (Level 1)
|
||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total assets | 3,400 | 1,200 | ||||||
Noncontrolling Interest | Significant Unobservable Inputs (Level 3)
|
||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total assets | 689,600 | 647,500 | ||||||
Noncontrolling Interest | Significant Other Observable Inputs (Level 2)
|
||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total assets | $ 1,500 | |||||||
|
Segment Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income (loss) | $ 154,430 | $ 135,455 | $ 457,301 | $ 386,207 | ||||||||||||
(Provision for) reduction of loan losses | (6,788) | (769) | (29,316) | 2,144 | ||||||||||||
Noninterest income | 69,139 | 95,611 | 208,858 | 309,273 | ||||||||||||
Noninterest expense | (135,171) | [1] | (127,451) | [1] | (402,949) | [1] | (365,918) | [1] | ||||||||
Income (loss) before income tax expense | 81,610 | [2] | 102,846 | [2] | 233,894 | [2] | 331,706 | [2] | ||||||||
Total average loans, net of unearned income | 7,907,606 | 6,006,614 | 7,318,537 | 5,619,709 | ||||||||||||
Total average assets | 21,727,197 | [3] | 18,796,510 | [3] | 20,953,041 | [3] | 18,336,848 | [3] | ||||||||
Total average deposits | 18,260,344 | 15,804,036 | 17,547,194 | 15,250,938 | ||||||||||||
Global Commercial Bank
|
||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income (loss) | 151,858 | [4] | 133,946 | [4] | 441,542 | [4] | 380,461 | [4] | ||||||||
(Provision for) reduction of loan losses | (7,787) | [4] | (3,883) | [4] | (29,946) | [4] | (3,222) | [4] | ||||||||
Noninterest income | 46,965 | [4] | 39,189 | [4] | 139,387 | [4] | 110,604 | [4] | ||||||||
Noninterest expense | (97,846) | [1],[4] | (92,350) | [1],[4] | (292,580) | [1],[4] | (262,932) | [1],[4] | ||||||||
Income (loss) before income tax expense | 93,190 | [2],[4] | 76,902 | [2],[4] | 258,403 | [2],[4] | 224,911 | [2],[4] | ||||||||
Total average loans, net of unearned income | 7,159,609 | [4] | 5,263,448 | [4] | 6,559,036 | [4] | 4,933,707 | [4] | ||||||||
Total average assets | 19,861,275 | [3],[4] | 17,347,197 | [3],[4] | 19,149,952 | [3],[4] | 16,788,462 | [3],[4] | ||||||||
Total average deposits | 17,881,175 | [4] | 15,573,886 | [4] | 17,240,715 | [4] | 15,063,215 | [4] | ||||||||
SVB Private Bank
|
||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income (loss) | 5,666 | 5,513 | 16,147 | 14,567 | ||||||||||||
(Provision for) reduction of loan losses | 999 | 3,114 | 630 | 5,366 | ||||||||||||
Noninterest income | 149 | 128 | 457 | 351 | ||||||||||||
Noninterest expense | (3,749) | [1] | (2,846) | [1] | (10,338) | [1] | (7,326) | [1] | ||||||||
Income (loss) before income tax expense | 3,065 | [2] | 5,909 | [2] | 6,896 | [2] | 12,958 | [2] | ||||||||
Total average loans, net of unearned income | 755,001 | 684,613 | 745,069 | 637,443 | ||||||||||||
Total average assets | 758,988 | [3] | 685,308 | [3] | 749,500 | [3] | 637,854 | [3] | ||||||||
Total average deposits | 341,537 | 200,547 | 278,736 | 169,368 | ||||||||||||
SVB Capital
|
||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income (loss) | 6 | [4] | 2 | [4] | 22 | [4] | 6 | [4] | ||||||||
(Provision for) reduction of loan losses | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | ||||||||
Noninterest income | 4,330 | [4] | 9,873 | [4] | 12,474 | [4] | 23,879 | [4] | ||||||||
Noninterest expense | (3,562) | [1],[4] | (3,860) | [1],[4] | (8,970) | [1],[4] | (10,113) | [1],[4] | ||||||||
Income (loss) before income tax expense | 774 | [2],[4] | 6,015 | [2],[4] | 3,526 | [2],[4] | 13,772 | [2],[4] | ||||||||
Total average loans, net of unearned income | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | ||||||||
Total average assets | 238,595 | [3],[4] | 238,949 | [3],[4] | 243,124 | [3],[4] | 225,041 | [3],[4] | ||||||||
Total average deposits | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | ||||||||
Other Items
|
||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income (loss) | (3,100) | (4,006) | (410) | (8,827) | ||||||||||||
(Provision for) reduction of loan losses | 0 | 0 | 0 | 0 | ||||||||||||
Noninterest income | 17,695 | 46,421 | 56,540 | 174,439 | ||||||||||||
Noninterest expense | (30,014) | [1] | (28,395) | [1] | (91,061) | [1] | (85,547) | [1] | ||||||||
Income (loss) before income tax expense | (15,419) | [2] | 14,020 | [2] | (34,931) | [2] | 80,065 | [2] | ||||||||
Total average loans, net of unearned income | (7,004) | 58,553 | 14,432 | 48,559 | ||||||||||||
Total average assets | 868,339 | [3] | 525,056 | [3] | 810,465 | [3] | 685,491 | [3] | ||||||||
Total average deposits | $ 37,632 | $ 29,603 | $ 27,743 | $ 18,355 | ||||||||||||
|
Total Notional or Contractual Amounts, Fair Value, Collateral and Net Exposure of Derivative Financial Instruments (Parenthetical) (Detail)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Disclosure Total Notional Or Contractual Amounts Fair Value Collateral And Net Exposure Of Derivative Financial Instruments [Abstract] | |
Credit rating of institutional counterparties | The credit ratings of our institutional counterparties as of September 30, 2012 remain at investment grade or higher and there were no material changes in their credit ratings for the three and nine months ended September 30, 2012 |
Share-Based Compensation (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
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Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Based Compensation and Related Benefits | For the three and nine months ended September 30, 2012 and 2011, we recorded share-based compensation and related tax benefits as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized Share Based Compensation Expense | As of September 30, 2012, unrecognized share-based compensation expense was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Information Related to Equity Incentive Plan | The table below provides stock option information related to the 1997 Equity Incentive Plan and the 2006 Equity Incentive Plan for the nine months ended September 30, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information for Restricted Stock Units under Equity Incentive Plan | The table below provides information for restricted stock units under the 2006 Equity Incentive Plan for the nine months ended September 30, 2012:
|
Summary of Remaining Contractual Principal Maturities and Fully Taxable Equivalent Yields on Debt Securities Classified as Available for Sale (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
---|---|
Investments Classified by Contractual Maturity Date [Line Items] | |
Carrying Value | $ 11,039,813 |
Weighted- Average Yield | 1.75% |
One Year or Less - Carrying Value | 77,389 |
One Year or Less - Weighted- Average Yield | 1.54% |
After One Year to Five Years - Carrying Value | 2,670,513 |
After One Year to Five Years - Weighted- Average Yield | 1.52% |
After Five Years to Ten Years - Carrying Value | 1,751,912 |
After Five Years to Ten Years - Weighted- Average Yield | 2.39% |
After Ten Years - Carrying Value | 6,539,999 |
After Ten Years - Weighted- Average Yield | 1.70% |
U.S. treasury securities
|
|
Investments Classified by Contractual Maturity Date [Line Items] | |
Carrying Value | 25,429 |
Weighted- Average Yield | 2.39% |
One Year or Less - Carrying Value | 25,429 |
One Year or Less - Weighted- Average Yield | 2.39% |
After One Year to Five Years - Carrying Value | 0 |
After One Year to Five Years - Weighted- Average Yield | 0.00% |
After Five Years to Ten Years - Carrying Value | 0 |
After Five Years to Ten Years - Weighted- Average Yield | 0.00% |
After Ten Years - Carrying Value | 0 |
After Ten Years - Weighted- Average Yield | 0.00% |
U.S. agency debentures
|
|
Investments Classified by Contractual Maturity Date [Line Items] | |
Carrying Value | 2,936,150 |
Weighted- Average Yield | 1.56% |
One Year or Less - Carrying Value | 51,027 |
One Year or Less - Weighted- Average Yield | 1.05% |
After One Year to Five Years - Carrying Value | 2,653,180 |
After One Year to Five Years - Weighted- Average Yield | 1.49% |
After Five Years to Ten Years - Carrying Value | 231,943 |
After Five Years to Ten Years - Weighted- Average Yield | 2.43% |
After Ten Years - Carrying Value | 0 |
After Ten Years - Weighted- Average Yield | 0.00% |
Residential mortgage-backed securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
|
|
Investments Classified by Contractual Maturity Date [Line Items] | |
Carrying Value | 1,590,582 |
Weighted- Average Yield | 2.34% |
One Year or Less - Carrying Value | 0 |
One Year or Less - Weighted- Average Yield | 0.00% |
After One Year to Five Years - Carrying Value | 0 |
After One Year to Five Years - Weighted- Average Yield | 0.00% |
After Five Years to Ten Years - Carrying Value | 1,470,437 |
After Five Years to Ten Years - Weighted- Average Yield | 2.27% |
After Ten Years - Carrying Value | 120,145 |
After Ten Years - Weighted- Average Yield | 3.29% |
Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Fixed rate
|
|
Investments Classified by Contractual Maturity Date [Line Items] | |
Carrying Value | 4,168,125 |
Weighted- Average Yield | 2.06% |
One Year or Less - Carrying Value | 0 |
One Year or Less - Weighted- Average Yield | 0.00% |
After One Year to Five Years - Carrying Value | 0 |
After One Year to Five Years - Weighted- Average Yield | 0.00% |
After Five Years to Ten Years - Carrying Value | 0 |
After Five Years to Ten Years - Weighted- Average Yield | 0.00% |
After Ten Years - Carrying Value | 4,168,125 |
After Ten Years - Weighted- Average Yield | 2.06% |
Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Variable rate
|
|
Investments Classified by Contractual Maturity Date [Line Items] | |
Carrying Value | 1,939,799 |
Weighted- Average Yield | 0.70% |
One Year or Less - Carrying Value | 0 |
One Year or Less - Weighted- Average Yield | 0.00% |
After One Year to Five Years - Carrying Value | 0 |
After One Year to Five Years - Weighted- Average Yield | 0.00% |
After Five Years to Ten Years - Carrying Value | 0 |
After Five Years to Ten Years - Weighted- Average Yield | 0.00% |
After Ten Years - Carrying Value | 1,939,799 |
After Ten Years - Weighted- Average Yield | 0.70% |
Agency-issued commercial mortgage-backed securities
|
|
Investments Classified by Contractual Maturity Date [Line Items] | |
Carrying Value | 279,507 |
Weighted- Average Yield | 2.01% |
One Year or Less - Carrying Value | 0 |
One Year or Less - Weighted- Average Yield | 0.00% |
After One Year to Five Years - Carrying Value | 0 |
After One Year to Five Years - Weighted- Average Yield | 0.00% |
After Five Years to Ten Years - Carrying Value | 0 |
After Five Years to Ten Years - Weighted- Average Yield | 0.00% |
After Ten Years - Carrying Value | 279,507 |
After Ten Years - Weighted- Average Yield | 2.01% |
Municipal bonds and notes
|
|
Investments Classified by Contractual Maturity Date [Line Items] | |
Carrying Value | 100,221 |
Weighted- Average Yield | 4.99% |
One Year or Less - Carrying Value | 933 |
One Year or Less - Weighted- Average Yield | 5.20% |
After One Year to Five Years - Carrying Value | 17,333 |
After One Year to Five Years - Weighted- Average Yield | 5.60% |
After Five Years to Ten Years - Carrying Value | 49,532 |
After Five Years to Ten Years - Weighted- Average Yield | 6.02% |
After Ten Years - Carrying Value | $ 32,423 |
After Ten Years - Weighted- Average Yield | 6.24% |
Information for Restricted Stock Units under Equity Incentive Plan (Detail) (USD $)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Weighted Average Grant Date Fair Value | |
Nonvested, beginning of period | $ 52.72 |
Granted | $ 63.83 |
Vested | $ 51.25 |
Forfeited | $ 54.89 |
Nonvested, end of period | $ 58.39 |
Restricted stock units
|
|
Shares | |
Nonvested, beginning of period | 499,119 |
Granted | 313,040 |
Vested | (144,953) |
Forfeited | (26,700) |
Nonvested, end of period | 640,506 |
Summary of Other Noninterest Expense (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Disclosure Summary Of Other Noninterest Expense [Abstract] | ||||
Telephone | $ 1,619 | $ 1,610 | $ 4,950 | $ 4,376 |
Client services | 1,804 | 1,289 | 4,796 | 3,128 |
Data processing services | 1,575 | 1,097 | 4,290 | 3,589 |
Tax credit fund amortization | 941 | 1,212 | 2,961 | 3,366 |
Postage and supplies | 591 | 641 | 1,844 | 1,725 |
Dues and publications | 472 | 465 | 1,503 | 1,166 |
Net gain from note repurchases and termination of corresponding interest rate swaps | 0 | 0 | 0 | (3,123) |
Other | 1,961 | 3,240 | 5,844 | 8,226 |
Total other noninterest expense | $ 8,963 | $ 9,554 | $ 26,188 | $ 22,453 |
Common Shares Excluded from Diluted EPS Calculation as They Were Deemed to be Anti-Dilutive (Detail)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share calculation | 1,015 | 1,543 | 658 | 791 |
Stock options
|
||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share calculation | 795 | 1,264 | 658 | 663 |
Restricted stock unit
|
||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share calculation | 220 | 279 | 0 | 128 |
Loans and Allowance for Loan Losses - Additional Information (Detail) (USD $)
|
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Deferred loan fee income | $ 73,800,000 | $ 73,800,000 | $ 60,200,000 | ||||||||
Loans modified in TDRs | 23,487,000 | 23,487,000 | 34,275,000 | ||||||||
Unfunded commitments available for funding | 100,000 | 100,000 | |||||||||
Loans modified in TDRs during the period | 1,969,000 | [1] | 3,429,000 | [1] | 16,431,000 | [1] | 11,177,000 | [1] | |||
Forgiveness Of Principal
|
|||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans modified in TDRs during the period | 9,600,000 | ||||||||||
Payment Deferrals Granted
|
|||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans modified in TDRs during the period | $ 6,800,000 | ||||||||||
|
Outstanding Short Term Borrowings and Long Term Debt (Parenthetical) (Detail) (USD $)
In Thousands, unless otherwise specified |
0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 15, 2011
3.875% Convertible Notes
|
Sep. 30, 2012
3.875% Convertible Notes
|
Dec. 31, 2011
3.875% Convertible Notes
|
Sep. 30, 2012
5.375% Senior Notes
|
Dec. 31, 2011
5.375% Senior Notes
|
Sep. 30, 2012
5.70% Senior Notes
|
Dec. 31, 2011
5.70% Senior Notes
|
Dec. 31, 2011
5.70% Senior Notes
Interest rate swaps
|
Sep. 30, 2012
6.05% Subordinated Notes
|
Dec. 31, 2011
6.05% Subordinated Notes
|
Sep. 30, 2012
6.05% Subordinated Notes
Interest rate swaps
|
Dec. 31, 2011
6.05% Subordinated Notes
Interest rate swaps
|
Sep. 30, 2012
7.0% Junior Subordinated Debentures
|
Dec. 31, 2011
7.0% Junior Subordinated Debentures
|
Apr. 30, 2012
Other long-term debt
|
|||||||
Debt Outstanding [Line Items] | |||||||||||||||||||||
Stated interest rate | 3.875% | 3.875% | 5.375% | 5.375% | 5.70% | 5.70% | 6.05% | 6.05% | 7.00% | 7.00% | |||||||||||
Fair value of the interest rate swap associated with the notes | $ 2,600 | $ 2,600 | $ 9,500 | $ 8,800 | $ 9,500 | $ 8,800 | |||||||||||||||
Maturity | Apr. 15, 2011 | Sep. 15, 2020 | Jun. 01, 2012 | [1] | Jun. 01, 2017 | [2] | Oct. 15, 2033 | Apr. 01, 2012 | |||||||||||||
|
Credit Quality Indicators, Broken out by Portfolio Segment and Class of Financing Receivables (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | $ 8,266,168 | $ 7,030,321 |
Commercial loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 7,512,582 | 6,335,392 |
Commercial loans | Software
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 2,983,420 | 2,517,890 |
Commercial loans | Hardware
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,205,059 | 961,869 |
Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,408,346 | 1,128,520 |
Commercial loans | Life science
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,038,327 | 872,413 |
Commercial loans | Premium wine
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 515,749 | 478,793 |
Commercial loans | Commercial Other Financing Receivable
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 361,681 | 375,907 |
Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 753,586 | 694,929 |
Consumer loans | Real estate secured loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 609,525 | 533,817 |
Consumer loans | Consumer Other Financing Receivable
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 144,061 | 161,112 |
Pass
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 7,723,983 | 6,434,133 |
Pass | Commercial loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 7,003,757 | 5,785,972 |
Pass | Commercial loans | Software
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 2,751,238 | 2,290,497 |
Pass | Commercial loans | Hardware
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,069,973 | 839,230 |
Pass | Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,406,746 | 1,120,373 |
Pass | Commercial loans | Life science
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 939,092 | 748,129 |
Pass | Commercial loans | Premium wine
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 501,507 | 434,309 |
Pass | Commercial loans | Commercial Other Financing Receivable
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 335,201 | 353,434 |
Pass | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 720,226 | 648,161 |
Pass | Consumer loans | Real estate secured loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 588,678 | 497,060 |
Pass | Consumer loans | Consumer Other Financing Receivable
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 131,548 | 151,101 |
Performing (Criticized)
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 502,788 | 559,571 |
Performing (Criticized) | Commercial loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 473,056 | 534,219 |
Performing (Criticized) | Commercial loans | Software
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 229,366 | 226,251 |
Performing (Criticized) | Commercial loans | Hardware
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 107,957 | 117,456 |
Performing (Criticized) | Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,600 | 8,147 |
Performing (Criticized) | Commercial loans | Life science
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 99,235 | 123,973 |
Performing (Criticized) | Commercial loans | Premium wine
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 11,163 | 41,272 |
Performing (Criticized) | Commercial loans | Commercial Other Financing Receivable
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 23,735 | 17,120 |
Performing (Criticized) | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 29,732 | 25,352 |
Performing (Criticized) | Consumer loans | Real estate secured loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 18,439 | 18,474 |
Performing (Criticized) | Consumer loans | Consumer Other Financing Receivable
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 11,293 | 6,878 |
Impaired
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 39,397 | 36,617 |
Impaired | Commercial loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 35,769 | 15,201 |
Impaired | Commercial loans | Software
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 2,816 | 1,142 |
Impaired | Commercial loans | Hardware
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 27,129 | 5,183 |
Impaired | Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 0 | 0 |
Impaired | Commercial loans | Life science
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 0 | 311 |
Impaired | Commercial loans | Premium wine
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 3,079 | 3,212 |
Impaired | Commercial loans | Commercial Other Financing Receivable
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 2,745 | 5,353 |
Impaired | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 3,628 | 21,416 |
Impaired | Consumer loans | Real estate secured loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 2,408 | 18,283 |
Impaired | Consumer loans | Consumer Other Financing Receivable
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | $ 1,220 | $ 3,133 |
Summary of Unrealized Losses on Available for Sale Securities (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months - Fair Value of Investments | $ 218,104 | $ 1,681,127 |
Less than 12 months - Unrealized Losses | (842) | (5,800) |
12 months or longer - Fair Value of Investments | 250 | 0 |
12 months or longer - Unrealized Losses | (194) | 0 |
Fair Value of Investments | 218,354 | 1,681,127 |
Unrealized Losses | (1,036) | (5,800) |
U.S. agency debentures
|
||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months - Fair Value of Investments | 50,994 | |
Less than 12 months - Unrealized Losses | (90) | |
12 months or longer - Fair Value of Investments | 0 | |
12 months or longer - Unrealized Losses | 0 | |
Fair Value of Investments | 50,994 | |
Unrealized Losses | (90) | |
Residential mortgage-backed securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
|
||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months - Fair Value of Investments | 54,588 | |
Less than 12 months - Unrealized Losses | (106) | |
12 months or longer - Fair Value of Investments | 0 | |
12 months or longer - Unrealized Losses | 0 | |
Fair Value of Investments | 54,588 | |
Unrealized Losses | (106) | |
Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Fixed rate
|
||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months - Fair Value of Investments | 205,942 | 50,125 |
Less than 12 months - Unrealized Losses | (742) | (71) |
12 months or longer - Fair Value of Investments | 0 | 0 |
12 months or longer - Unrealized Losses | 0 | 0 |
Fair Value of Investments | 205,942 | 50,125 |
Unrealized Losses | (742) | (71) |
Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Variable rate
|
||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months - Fair Value of Investments | 10,611 | 1,521,589 |
Less than 12 months - Unrealized Losses | (5) | (4,334) |
12 months or longer - Fair Value of Investments | 0 | 0 |
12 months or longer - Unrealized Losses | 0 | 0 |
Fair Value of Investments | 10,611 | 1,521,589 |
Unrealized Losses | (5) | (4,334) |
Equity securities
|
||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months - Fair Value of Investments | 1,551 | 3,831 |
Less than 12 months - Unrealized Losses | (95) | (1,199) |
12 months or longer - Fair Value of Investments | 250 | 0 |
12 months or longer - Unrealized Losses | (194) | 0 |
Fair Value of Investments | 1,801 | 3,831 |
Unrealized Losses | $ (289) | $ (1,199) |
Stockholders' Equity and EPS
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Stockholders' Equity and EPS | Stockholders’ Equity and EPS EPS Basic EPS is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock options and restricted stock units outstanding under our equity incentive plans, our ESPP, and for certain prior periods, our 3.875% convertible senior notes (“3.875% Convertible Notes”). Potentially dilutive common shares are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive. The following is a reconciliation of basic EPS to diluted EPS for the three and nine months ended September 30, 2012 and 2011:
The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation as they were deemed to be antidilutive for the three and nine months ended September 30, 2012 and 2011:
|
Summary of Loans Modified in Troubled Debt Restructurings ("TDRs") by Portfolio Segment and Class of Financing Receivables (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | $ 23,487 | $ 34,275 |
Commercial loans
|
||
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | 19,904 | 13,208 |
Commercial loans | Software
|
||
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | 2,459 | 1,142 |
Commercial loans | Hardware
|
||
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | 12,193 | 5,183 |
Commercial loans | Premium wine
|
||
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | 1,971 | 1,949 |
Commercial loans | Commercial Other Financing Receivable
|
||
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | 3,281 | 4,934 |
Consumer loans
|
||
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | 3,583 | 21,067 |
Consumer loans | Real estate secured loans
|
||
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | 2,363 | 17,934 |
Consumer loans | Consumer Other Financing Receivable
|
||
Financing Receivable, Modifications [Line Items] | ||
Loans modified in TDRs | $ 1,220 | $ 3,133 |