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Investment Securities
 12 Months Ended
Dec. 31, 2012
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
Our investment securities portfolio consists of both an available-for-sale securities portfolio, which represents interest-earning investment securities, and a non-marketable securities portfolio, which primarily represents investments managed as part of our funds management business.
The major components of our investment securities portfolio at December 31, 2012 and December 31, 2011 are as follows:
 
 
December 31, 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
 
$
25,057

 
$
190

 
$
—

 
$
25,247

 
$
25,233

 
$
731

 
$
—

 
$
25,964

U.S. agency debentures
 
3,370,455

 
77,173

 
—

 
3,447,628

 
2,822,158

 
52,864

 
(90
)
 
2,874,932

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
1,428,682

 
44,858

 
(107
)
 
1,473,433

 
1,529,466

 
34,926

 
(106
)
 
1,564,286

Agency-issued collateralized mortgage obligations—fixed rate
 
4,063,020

 
41,949

 
(995
)
 
4,103,974

 
3,317,285

 
56,546

 
(71
)
 
3,373,760

Agency-issued collateralized mortgage obligations—variable rate
 
1,760,551

 
12,201

 
(4
)
 
1,772,748

 
2,416,158

 
1,554

 
(4,334
)
 
2,413,378

Agency-issued commercial mortgage-backed securities
 
416,487

 
6,100

 
(489
)
 
422,098

 
176,646

 
2,047

 
—

 
178,693

Municipal bonds and notes
 
85,790

 
7,750

 
(11
)
 
93,529

 
92,241

 
8,257

 
—

 
100,498

Equity securities
 
2,108

 
2,739

 
(327
)
 
4,520

 
5,554

 
180

 
(1,199
)
 
4,535

Total available-for-sale securities
 
$
11,152,150

 
$
192,960

 
$
(1,933
)
 
$
11,343,177

 
$
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)
 
 
 
 
 
 
 
665,921

 
 
 
 
 
 
 
611,824

Other venture capital investments (2)
 
 
 
 
 
 
 
127,091

 
 
 
 
 
 
 
124,121

Other investments
 
 
 
 
 
 
 
—

 
 
 
 
 
 
 
987

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other investments (3)
 
 
 
 
 
 
 
139,330

 
 
 
 
 
 
 
68,252

Low income housing tax credit funds
 
 
 
 
 
 
 
70,318

 
 
 
 
 
 
 
34,894

Non-marketable securities (cost method accounting):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments (4)
 
 
 
 
 
 
 
161,884

 
 
 
 
 
 
 
145,007

Other investments
 
 
 
 
 
 
 
19,721

 
 
 
 
 
 
 
19,355

Total non-marketable securities
 
 
 
 
 
 
 
1,184,265

 
 
 
 
 
 
 
1,004,440

Total investment securities
 
 
 
 
 
 
 
$
12,527,442

 
 
 
 
 
 
 
$
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 December 31, 2012 and December 31, 2011 (fair value accounting):
 
 
December 31, 2012
 
December 31, 2011
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
SVB Strategic Investors Fund, LP
 
$
32,850

 
12.6
%
 
$
39,567

 
12.6
%
SVB Strategic Investors Fund II, LP
 
91,294

 
8.6

 
122,619

 
8.6

SVB Strategic Investors Fund III, LP
 
209,696

 
5.9

 
218,429

 
5.9

SVB Strategic Investors Fund IV, LP
 
169,931

 
5.0

 
122,076

 
5.0

Strategic Investors Fund V Funds
 
40,622

 
Various

 
8,838

 
0.3

SVB Capital Preferred Return Fund, LP
 
53,643

 
20.0

 
42,580

 
20.0

SVB Capital—NT Growth Partners, LP
 
60,120

 
33.0

 
43,958

 
33.0

SVB Capital Partners II, LP (i)
 
1,303

 
5.1

 
2,390

 
5.1

Other private equity fund (ii)
 
6,462

 
58.2

 
11,367

 
58.2

Total venture capital and private equity fund investments
 
$
665,921

 
 
 
$
611,824

 
 
 
 
(i)
At December 31, 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 December 31, 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 December 31, 2012 and December 31, 2011 (fair value accounting):
 
 
December 31, 2012
 
December 31, 2011
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Silicon Valley BancVentures, LP
 
$
43,493

 
10.7
%
 
$
17,878

 
10.7
%
SVB Capital Partners II, LP (i)
 
79,761

 
5.1

 
61,099

 
5.1

SVB India Capital Partners I, LP (ii)
 
—

 
—

 
42,832

 
14.4

SVB Capital Shanghai Yangpu Venture Capital Fund
 
3,837

 
6.8

 
2,312

 
6.8

Total other venture capital investments
 
$
127,091

 
 
 
$
124,121

 
 
 
 
(i)
At December 31, 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.
(ii)
As of December 31, 2012, SVB India Capital Partners I, LP, was deconsolidated from the financial statements of SVBFG. See Note 2 – “Significant Accounting Policies-Principles of Consolidation and Presentation” for additional details.
(3)
The following table shows the carrying value and our ownership percentage of each investment at December 31, 2012 and December 31, 2011 (equity method accounting):
 
 
December 31, 2012
 
December 31, 2011
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Gold Hill Venture Lending 03, LP (i)
 
$
9,413

 
9.3
%
 
$
16,072

 
9.3
%
Gold Hill Capital 2008, LP (ii)
 
20,893

 
15.5

 
19,328

 
15.5

China Joint Venture investment (iii)
 
78,545

 
50.0

 
—

 
—

Other investments
 
30,479

 
Various

 
32,852

 
Various

Total other investments (equity method accounting)
 
$
139,330

 
 
 
$
68,252

 
 
 
 
(i)
At December 31, 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 December 31, 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)
In 2012, we contributed $80 million to SPD Silicon Valley Bank Co., Ltd. ("SPD-SVB"), our joint venture bank in China.
(4)
Represents investments in 324 and 329 funds (primarily venture capital funds) at December 31, 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 year ended December 31, 2012, we recognized OTTI losses of $1.0 million resulting from other-than-temporary declines in value for 46 of the 324 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 December 31, 2012, the carrying value of these venture capital and private equity fund investments (cost method accounting) was $162 million, and the estimated fair value was $193 million.
The following table summarizes our unrealized losses on our available-for-sale securities portfolio into categories of less than 12 months, or 12 months or longer as of December 31, 2012:
 
 
December 31, 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 mortgage-backed securities
 
$
22,831

 
$
(107
)
 
$
—

 
$
—

 
$
22,831

 
$
(107
)
Agency-issued collateralized mortgage obligations—fixed rate
 
461,397

 
(995
)
 
—

 
—

 
461,397

 
(995
)
Agency-issued collateralized mortgage obligations—variable rate
 
—

 
—

 
7,908

 
(4
)
 
7,908

 
(4
)
Agency-issued commercial mortgage-backed securities
 
150,581

 
(489
)
 
—

 
—

 
150,581

 
(489
)
Municipal bonds and notes
 
2,098

 
(11
)
 
—

 
—

 
2,098

 
(11
)
Equity securities
 
97

 
(61
)
 
255

 
(266
)
 
352

 
(327
)
Total temporarily impaired securities (1)
 
$
637,004

 
$
(1,663
)
 
$
8,163

 
$
(270
)
 
$
645,167

 
$
(1,933
)
 
 
(1)
As of December 31, 2012, we identified a total of 33 investments that were in unrealized loss positions, of which six investments totaling $8.2 million with unrealized losses of $0.3 million have been in an impaired position for a period of time greater than 12 months. As of December 31, 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 December 31, 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.
The following table summarizes our unrealized losses on our available-for-sale securities portfolio into categories of less than 12 months, or 12 months or longer as of December 31, 2011:
 
 
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
)
The following table summarizes the remaining contractual principal maturities and fully taxable equivalent yields on debt securities classified as available-for-sale as of December 31, 2012. Interest income on certain municipal bonds and notes (non-taxable investments) are presented on a fully taxable equivalent basis using the federal statutory tax rate of 35.0 percent. The weighted average yield is computed using the amortized cost of debt securities, which are reported at fair value. For U.S. treasury securities, the expected maturity is the actual contractual maturity of the notes. Expected remaining maturities for certain U.S. agency debentures may occur earlier than their contractual maturities because the note issuers have the right to call outstanding amounts ahead of their contractual maturity. Expected maturities for mortgage-backed securities may differ significantly from their contractual maturities because mortgage borrowers have the right to prepay outstanding loan obligations with or without penalties. Mortgage-backed securities classified as available-for-sale typically have original contractual maturities from 10 to 30 years whereas expected average lives of these securities tend to be significantly shorter and vary based upon structure.
 
 
December 31, 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
 
$
25,247

 
2.39
%
 
$
25,247

 
2.39
%
 
$
—

 
—
%
 
$
—

 
—
%
 
$
—

 
—
%
U.S. agency debentures
 
3,447,628

 
1.52

 
151,916

 
1.30

 
2,593,853

 
1.48

 
701,859

 
1.72

 
—

 
—

Residential mortgage-backed securities:
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
1,473,433

 
2.33

 
—

 
—

 
—

 
—

 
1,342,062

 
2.26

 
131,371

 
3.00

Agency-issued collateralized mortgage obligations - fixed rate
 
4,103,974

 
1.98

 
—

 
—

 
—

 
—

 
—

 
—

 
4,103,974

 
1.98

Agency-issued collateralized mortgage obligations - variable rate
 
1,772,748

 
0.70

 
—

 
—

 
—

 
—

 
—

 
—

 
1,772,748

 
0.70

Agency-issued commercial mortgage-backed securities
 
422,098

 
1.82

 
—

 
—

 
—

 
—

 
—

 
—

 
422,098

 
1.82

Municipal bonds and notes
 
93,529

 
5.99

 
925

 
5.20

 
17,450

 
5.62

 
48,289

 
5.99

 
26,865

 
6.26

Total
 
$
11,338,657

 
1.71

 
$
178,088

 
1.47

 
$
2,611,303

 
1.51

 
$
2,092,210

 
2.17

 
$
6,457,056

 
1.66

The following table presents the components of gains and losses (realized and unrealized) on investment securities in 2012, 2011 and 2010:
 
 
Year ended December 31,
(Dollars in thousands)
 
2012
 
2011
 
2010
Gross gains on investment securities:
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
$
6,380

 
$
37,387

 
$
27,110

Marketable securities (fair value accounting)
 
8,863

 
912

 
8,160

Non-marketable securities (fair value accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
107,507

 
145,892

 
63,137

Other venture capital investments
 
58,409

 
36,506

 
29,455

Other investments
 
21

 
40

 
140

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
Other investments
 
16,923

 
12,445

 
8,551

Non-marketable securities (cost method accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
3,503

 
2,517

 
1,739

Other investments
 
1,715

 
6,527

 
478

Total gross gains on investment securities
 
203,321

 
242,226

 
138,770

Gross losses on investment securities:
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
(2,139
)
 
(261
)
 
(2,287
)
Marketable securities (fair value accounting)
 
(1,675
)
 
(8,103
)
 
(9,855
)
Non-marketable securities (fair value accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
(63,146
)
 
(26,591
)
 
(19,497
)
Other venture capital investments
 
(11,062
)
 
(8,918
)
 
(11,079
)
Other investments
 
—

 
(16
)
 
(158
)
Non-marketable securities (equity method accounting):
 
 
 
 
 
 
Other investments
 
(1,987
)
 
(2,241
)
 
(616
)
Non-marketable securities (cost method accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
(1,079
)
 
(1,028
)
 
(1,793
)
Other investments
 
(119
)
 
(34
)
 
(125
)
Total gross losses on investment securities
 
(81,207
)
 
(47,192
)
 
(45,410
)
Gains on investment securities, net
 
$
122,114

 
$
195,034

 
$
93,360

Gains attributable to noncontrolling interests, including carried interest
 
$
85,640

 
$
125,042

 
$
52,586

 
 
(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.