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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract]  
Major Components of Investment Securities Portfolio
The major components of our investment securities portfolio at September 30, 2013 and December 31, 2012 are as follows:
 
 
September 30, 2013
 
December 31, 2012
(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

U.S. agency debentures
 
3,602,585

 
46,412

 
(24,177
)
 
3,624,820

 
3,370,455

 
77,173

 
—

 
3,447,628

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
1,493,666

 
28,013

 
(2,981
)
 
1,518,698

 
1,428,682

 
44,858

 
(107
)
 
1,473,433

Agency-issued collateralized mortgage obligations—fixed rate
 
3,269,966

 
21,699

 
(44,188
)
 
3,247,477

 
4,063,020

 
41,949

 
(995
)
 
4,103,974

Agency-issued collateralized mortgage obligations—variable rate
 
1,286,547

 
3,452

 
(149
)
 
1,289,850

 
1,760,551

 
12,201

 
(4
)
 
1,772,748

Agency-issued commercial mortgage-backed securities
 
445,336

 
1,381

 
(10,785
)
 
435,932

 
416,487

 
6,100

 
(489
)
 
422,098

Municipal bonds and notes
 
82,039

 
4,540

 
—

 
86,579

 
85,790

 
7,750

 
(11
)
 
93,529

Equity securities
 
6,722

 
807

 
(968
)
 
6,561

 
2,108

 
2,739

 
(327
)
 
4,520

Total available-for-sale securities
 
$
10,186,861

 
$
106,304

 
$
(83,248
)
 
$
10,209,917

 
$
11,152,150

 
$
192,960

 
$
(1,933
)
 
$
11,343,177

Non-marketable and other securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-marketable securities (fair value accounting):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments (1)
 
 
 
 
 
 
 
773,499

 
 
 
 
 
 
 
665,921

Other venture capital investments (2)
 
 
 
 
 
 
 
55,359

 
 
 
 
 
 
 
127,091

Other securities (fair value accounting) (3)
 
 
 
 
 
 
 
219,600

 
 
 
 
 
 
 
—

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other investments (4)
 
 
 
 
 
 
 
142,571

 
 
 
 
 
 
 
139,330

Low income housing tax credit funds
 
 
 
 
 
 
 
70,092

 
 
 
 
 
 
 
70,318

Non-marketable securities (cost method accounting):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments (5)
 
 
 
 
 
 
 
149,602

 
 
 
 
 
 
 
161,884

Other investments
 
 
 
 
 
 
 
14,415

 
 
 
 
 
 
 
19,721

Total non-marketable and other securities
 
 
 
 
 
 
 
1,425,138

 
 
 
 
 
 
 
1,184,265

Total investment securities
 
 
 
 
 
 
 
$
11,635,055

 
 
 
 
 
 
 
$
12,527,442

 
 

(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, 2013 and December 31, 2012 (fair value accounting):
 
 
September 30, 2013
 
December 31, 2012
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
SVB Strategic Investors Fund, LP
 
$
30,265

 
12.6
%
 
$
32,850

 
12.6
%
SVB Strategic Investors Fund II, LP
 
96,595

 
8.6

 
91,294

 
8.6

SVB Strategic Investors Fund III, LP
 
226,123

 
5.9

 
209,696

 
5.9

SVB Strategic Investors Fund IV, LP
 
209,368

 
5.0

 
169,931

 
5.0

Strategic Investors Fund V Funds
 
89,410

 
Various

 
40,622

 
Various

Strategic Investors Fund VI Funds
 
4,681

 
0.2

 
—

 
—

SVB Capital Preferred Return Fund, LP
 
55,721

 
20.0

 
53,643

 
20.0

SVB Capital—NT Growth Partners, LP
 
55,836

 
33.0

 
60,120

 
33.0

SVB Capital Partners II, LP (i)
 
716

 
5.1

 
1,303

 
5.1

Other private equity fund (ii)
 
4,784

 
58.2

 
6,462

 
58.2

Total venture capital and private equity fund investments
 
$
773,499

 
 
 
$
665,921

 
 
 
 
(i)
At September 30, 2013, 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, 2013, 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, 2013 and December 31, 2012 (fair value accounting):
 
 
September 30, 2013
 
December 31, 2012
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Silicon Valley BancVentures, LP
 
$
7,383

 
10.7
%
 
$
43,493

 
10.7
%
SVB Capital Partners II, LP (i)
 
43,682

 
5.1

 
79,761

 
5.1

SVB Capital Shanghai Yangpu Venture Capital Fund
 
4,294

 
6.8

 
3,837

 
6.8

Total other venture capital investments
 
$
55,359

 
 
 
$
127,091

 
 
 
 
(i)
At September 30, 2013, 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)
Investments classified as other securities (fair value accounting) represent certain direct equity investments in public companies held by our consolidated funds.
(4)
The following table shows the carrying value and our ownership percentage of each investment at September 30, 2013 and December 31, 2012 (equity method accounting):
 
 
September 30, 2013
 
December 31, 2012
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Gold Hill Venture Lending 03, LP (i)
 
$
8,734

 
9.3
%
 
$
9,413

 
9.3
%
Gold Hill Capital 2008, LP (ii)
 
21,318

 
15.5

 
20,893

 
15.5

China Joint Venture investment
 
80,346

 
50.0

 
78,545

 
50.0

Other investments
 
32,173

 
Various

 
30,479

 
Various

Total other investments (equity method accounting)
 
$
142,571

 
 
 
$
139,330

 
 
 
 
(i)
At September 30, 2013, 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 03, LLC (“GHLLC”) of 4.5 percent.
(ii)
At September 30, 2013, 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.
(5)
Represents investments in 293 and 324 funds (primarily venture capital funds) at September 30, 2013 and December 31, 2012, respectively, where our ownership interest is typically 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, 2013, we recognized OTTI losses of $0.4 million resulting from other-than-temporary declines in value for 12 of the 293 investments. For the nine months ended September 30, 2013, we recognized OTTI losses of $1.2 million resulting from other-than-temporary declines in value for 37 of the 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, 2013, the carrying value of these venture capital and private equity fund investments (cost method accounting) was $150 million, and the estimated fair value was $206 million.
Summary of Unrealized Losses on Available for Sale Securities
The following table summarizes our unrealized losses on our available-for-sale securities portfolio into categories of less than 12 months and 12 months or longer as of September 30, 2013:
 
 
September 30, 2013
 
 
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
 
$
942,337

 
$
(24,177
)
 
$
—

 
$
—

 
$
942,337

 
$
(24,177
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
261,787

 
(2,981
)
 
—

 
—

 
261,787

 
(2,981
)
Agency-issued collateralized mortgage obligations—fixed rate
 
1,886,229

 
(42,555
)
 
79,190

 
(1,633
)
 
1,965,419

 
(44,188
)
Agency-issued collateralized mortgage obligations—variable rate
 
147,218

 
(149
)
 
—

 
—

 
147,218

 
(149
)
Agency-issued commercial mortgage-backed securities
 
232,474

 
(10,785
)
 
—

 
—

 
232,474

 
(10,785
)
Equity securities
 
2,544

 
(968
)
 
—

 
—

 
2,544

 
(968
)
Total temporarily impaired securities (1)
 
$
3,472,589

 
$
(81,615
)
 
$
79,190

 
$
(1,633
)
 
$
3,551,779

 
$
(83,248
)
 
 
(1)
As of September 30, 2013, we identified a total of 134 investments that were in unrealized loss positions, of which 3 investments totaling $79 million with unrealized losses of $1.6 million have been in an impaired position for a period of time greater than 12 months. As of September 30, 2013, 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, 2013, 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 and 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
 
$
637,004

 
$
(1,663
)
 
$
8,163

 
$
(270
)
 
$
645,167

 
$
(1,933
)
Summary of Remaining Contractual Principal Maturities and Fully Taxable Equivalent Yields on Debt Securities Classified as Available for Sale
The following table summarizes the remaining contractual principal maturities and fully taxable equivalent yields on debt securities classified as available-for-sale as of September 30, 2013. 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.
 
 
September 30, 2013
 
 
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. agency debentures
 
$
3,624,820

 
1.56
%
 
$
248,124

 
1.34
%
 
$
2,607,969

 
1.49
%
 
$
768,727

 
1.87
%
 
$
—

 
—
%
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
1,518,698

 
2.38

 
—

 
—

 
889

 
7.50

 
1,024,091

 
2.25

 
493,718

 
2.63

Agency-issued collateralized mortgage obligations - fixed rate
 
3,247,477

 
1.90

 
—

 
—

 
—

 
—

 
—

 
—

 
3,247,477

 
1.90

Agency-issued collateralized mortgage obligations - variable rate
 
1,289,850

 
0.70

 
—

 
—

 
—

 
—

 
—

 
—

 
1,289,850

 
0.70

Agency-issued commercial mortgage-backed securities
 
435,932

 
1.92

 
—

 
—

 
—

 
—

 
—

 
—

 
435,932

 
1.92

Municipal bonds and notes
 
86,579

 
5.98

 
1,334

 
5.44

 
23,498

 
5.69

 
43,304

 
6.03

 
18,443

 
6.26

Total
 
$
10,203,356

 
1.74

 
$
249,458

 
1.36

 
$
2,632,356

 
1.53

 
$
1,836,122

 
2.18

 
$
5,485,420

 
1.70
Components of Gains and Losses (Realized and Unrealized) on Investment Securities
The following table presents the components of gains and losses (realized and unrealized) on investment securities for the three and nine months ended September 30, 2013 and 2012:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2013
 
2012
 
2013
 
2012
Gross gains on investment securities:
 
 
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
$
317

 
$
20

 
$
3,167

 
$
5,363

Marketable securities (fair value accounting)
 
—

 
255

 
4,345

 
3,874

Non-marketable securities (fair value accounting):
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments
 
35,826

 
28,639

 
107,546

 
88,037

Other venture capital investments
 
5,180

 
2,515

 
8,020

 
5,848

Other investments
 
—

 
—

 
—

 
21

Other securities (fair value accounting) (2)
 
143,840

 
—

 
143,840

 
—

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
 
 
Other investments
 
6,569

 
5,571

 
14,038

 
12,382

Non-marketable securities (cost method accounting):
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments
 
5,016

 
694

 
6,806

 
1,639

Other investments
 
34

 
1,406

 
370

 
1,712

Total gross gains on investment securities
 
196,782

 
39,100

 
288,132

 
118,876

Gross losses on investment securities:
 
 
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
(98
)
 
(121
)
 
(2,218
)
 
(1,771
)
Marketable securities (fair value accounting)
 
—

 
(553
)
 
(2,534
)
 
(1,307
)
Non-marketable securities (fair value accounting):
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments
 
(1,575
)
 
(16,557
)
 
(17,020
)
 
(49,090
)
Other venture capital investments
 
(587
)
 
(125
)
 
(2,241
)
 
(10,007
)
Other securities (fair value accounting)
 
(75
)
 
—

 
(75
)
 
—

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
 
 
Other investments
 
(1,944
)
 
(1,091
)
 
(2,421
)
 
(1,794
)
Non-marketable securities (cost method accounting):
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments
 
(689
)
 
(423
)
 
(1,462
)
 
(963
)
Other investments
 
(3,952
)
 
(2
)
 
(4,300
)
 
(68
)
Total gross losses on investment securities
 
(8,920
)
 
(18,872
)
 
(32,271
)
 
(65,000
)
Gains on investment securities, net
 
$
187,862

 
$
20,228

 
$
255,861

 
$
53,876

Gains attributable to noncontrolling interests, including carried interest
 
$
151,360

 
$
12,776

 
$
204,723

 
$
34,616

 
 
(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 and not shown in the table above. The cost basis of available-for-sale securities sold is determined on a specific identification basis.
(2)
Other securities (fair value accounting) include unrealized valuation gains of $139 million attributable to one of our portfolio companies, FireEye, Inc. ("FireEye), after its IPO.