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Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Major Components of Investment Securities Portfolio
The major components of our investment securities portfolio at December 31, 2013 and December 31, 2012 are as follows:
 
 
December 31, 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
 
4,344,652

 
41,365

 
(40,785
)
 
4,345,232

 
3,370,455

 
77,173

 
—

 
3,447,628

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
2,472,528

 
17,189

 
(16,141
)
 
2,473,576

 
1,428,682

 
44,858

 
(107
)
 
1,473,433

Agency-issued collateralized mortgage obligations—fixed rate
 
3,386,670

 
24,510

 
(85,422
)
 
3,325,758

 
4,063,020

 
41,949

 
(995
)
 
4,103,974

Agency-issued collateralized mortgage obligations—variable rate
 
1,183,333

 
3,363

 
(123
)
 
1,186,573

 
1,760,551

 
12,201

 
(4
)
 
1,772,748

Agency-issued commercial mortgage-backed securities
 
581,475

 
552

 
(17,423
)
 
564,604

 
416,487

 
6,100

 
(489
)
 
422,098

Municipal bonds and notes
 
82,024

 
4,024

 
(21
)
 
86,027

 
85,790

 
7,750

 
(11
)
 
93,529

Equity securities
 
4,842

 
692

 
(483
)
 
5,051

 
2,108

 
2,739

 
(327
)
 
4,520

Total available-for-sale securities
 
$
12,055,524

 
$
91,695

 
$
(160,398
)
 
$
11,986,821

 
$
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)
 
 
 
 
 
 
 
862,972

 
 
 
 
 
 
 
665,921

Other venture capital investments (2)
 
 
 
 
 
 
 
32,839

 
 
 
 
 
 
 
127,091

Other Securities (fair value accounting) (3)
 
 
 
 
 
 
 
321,374

 
 
 
 
 
 
 
—

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other investments (4)
 
 
 
 
 
 
 
142,883

 
 
 
 
 
 
 
139,330

Low income housing tax credit funds
 
 
 
 
 
 
 
72,241

 
 
 
 
 
 
 
70,318

Non-marketable securities (cost method accounting):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments (5)
 
 
 
 
 
 
 
148,994

 
 
 
 
 
 
 
161,884

Other investments
 
 
 
 
 
 
 
14,191

 
 
 
 
 
 
 
19,721

Total non-marketable and other securities
 
 
 
 
 
 
 
1,595,494

 
 
 
 
 
 
 
1,184,265

Total investment securities
 
 
 
 
 
 
 
$
13,582,315

 
 
 
 
 
 
 
$
12,527,442

 
 

 
 
December 31, 2013
 
December 31, 2012
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
SVB Strategic Investors Fund, LP
 
$
29,104

 
12.6
%
 
$
32,850

 
12.6
%
SVB Strategic Investors Fund II, LP
 
96,185

 
8.6

 
91,294

 
8.6

SVB Strategic Investors Fund III, LP
 
260,272

 
5.9

 
209,696

 
5.9

SVB Strategic Investors Fund IV, LP
 
226,729

 
5.0

 
169,931

 
5.0

Strategic Investors Fund V Funds
 
118,181

 
Various

 
40,622

 
Various

Strategic Investors Fund VI Funds
 
7,944

 
0.2

 
—

 
—

SVB Capital Preferred Return Fund, LP
 
59,028

 
20.0

 
53,643

 
20.0

SVB Capital—NT Growth Partners, LP
 
61,126

 
33.0

 
60,120

 
33.0

SVB Capital Partners II, LP (i)
 
708

 
5.1

 
1,303

 
5.1

Other private equity fund (ii)
 
3,695

 
58.2

 
6,462

 
58.2

Total venture capital and private equity fund investments
 
$
862,972

 
 
 
$
665,921

 
 
 
 
(i)
At December 31, 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 December 31, 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 December 31, 2013 and December 31, 2012 (fair value accounting):
 
 
December 31, 2013
 
December 31, 2012
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Silicon Valley BancVentures, LP
 
$
6,564

 
10.7
%
 
$
43,493

 
10.7
%
SVB Capital Partners II, LP (i)
 
22,684

 
5.1

 
79,761

 
5.1

SVB Capital Shanghai Yangpu Venture Capital Fund
 
3,591

 
6.8

 
3,837

 
6.8

Total other venture capital investments
 
$
32,839

 
 
 
$
127,091

 
 
 
 
(i)
At December 31, 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 direct equity investments in public companies held by our consolidated funds. This amount primarily includes total unrealized gains of $294 million in two of our public portfolio companies, FireEye and Twitter, both of which are currently subject to lock-up agreements. The extent to which any unrealized gains will become realized is subject to a variety of factors, including, among other things, the expiration of certain sales restrictions to which these securities are subject, the actual sales of securities and the timing of such actual sales.






(4)
The following table shows the carrying value and our ownership percentage of each investment at December 31, 2013 and December 31, 2012 (equity method accounting):
 
 
December 31, 2013
 
December 31, 2012
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Gold Hill Venture Lending 03, LP (i)
 
$
7,900

 
9.3
%
 
$
9,413

 
9.3
%
Gold Hill Capital 2008, LP (ii)
 
21,867

 
15.5

 
20,893

 
15.5

China Joint Venture investment
 
79,940

 
50.0

 
78,545

 
50.0

Other investments
 
33,176

 
Various

 
30,479

 
Various

Total other investments (equity method accounting)
 
$
142,883

 
 
 
$
139,330

 
 
 
 
(i)
At December 31, 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 December 31, 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 288 and 324 funds (primarily venture capital funds) at December 31, 2013 and December 31, 2012, 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. The carrying value, and estimated fair value, of these venture capital and private equity fund investments (cost method accounting) was $149 million, and $215 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, or 12 months or longer as of December 31, 2013:
 
 
December 31, 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
 
$
1,821,045

 
$
(40,785
)
 
$
—

 
$
—

 
$
1,821,045

 
$
(40,785
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
1,480,870

 
(14,029
)
 
19,830

 
(2,112
)
 
1,500,700

 
(16,141
)
Agency-issued collateralized mortgage obligations—fixed rate
 
2,098,137

 
(79,519
)
 
134,420

 
(5,903
)
 
2,232,557

 
(85,422
)
Agency-issued collateralized mortgage obligations—variable rate
 
109,699

 
(123
)
 
—

 
—

 
109,699

 
(123
)
Agency-issued commercial mortgage-backed securities
 
464,171

 
(17,423
)
 
—

 
—

 
464,171

 
(17,423
)
Municipal bonds and notes
 
3,404

 
(21
)
 
—

 
—

 
3,404

 
(21
)
Equity securities
 
909,510

 
(483
)
 
—

 
—

 
909,510

 
(483
)
Total temporarily impaired securities (1)
 
$
6,886,836

 
$
(152,383
)
 
$
154,250

 
$
(8,015
)
 
$
7,041,086

 
$
(160,398
)
 
 
(1)
As of December 31, 2013, we identified a total of 220 investments that were in unrealized loss positions, of which eight investments totaling $154 million with unrealized losses of $8 million have been in an impaired position for a period of time greater than 12 months. As of December 31, 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 December 31, 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, 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
 
$
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 December 31, 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 and prepayments in lower rate environments.
 
 
December 31, 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
 
$
4,345,232

 
2.03
%
 
$
197,305

 
1.26
%
 
$
2,926,457

 
1.50
%
 
$
1,221,470

 
2.00
%
 
$
—

 
—
%
Residential mortgage-backed securities:
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
2,473,576

 
2.44

 
—

 
—

 
876

 
7.50

 
953,783

 
2.24

 
1,518,917

 
2.56

Agency-issued collateralized mortgage obligations - fixed rate
 
3,325,758

 
1.90

 
—

 
—

 
—

 
—

 
41,945

 
2.81

 
3,283,813

 
1.90

Agency-issued collateralized mortgage obligations - variable rate
 
1,186,573

 
0.70

 
—

 
—

 
—

 
—

 
—

 
—

 
1,186,573

 
0.70

Agency-issued commercial mortgage-backed securities
 
564,604

 
2.18

 
—

 
—

 
—

 
—

 
—

 
—

 
564,604

 
2.18

Municipal bonds and notes
 
86,027

 
5.98

 
1,322

 
5.44

 
25,539

 
5.71

 
43,523

 
6.05

 
15,643

 
6.26

Total
 
$
11,981,770

 
1.98

 
$
198,627

 
1.29

 
$
2,952,872

 
1.54

 
$
2,260,721

 
2.20

 
$
6,569,550

 
1.87
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 in 2013, 2012 and 2011:
 
 
Year ended December 31,
(Dollars in thousands)
 
2013
 
2012
 
2011
Gross gains on investment securities:
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
$
3,887

 
$
6,380

 
$
37,387

Marketable securities (fair value accounting)
 
—

 
8,863

 
912

Non-marketable securities (fair value accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
186,404

 
107,507

 
145,892

Other venture capital investments (2)
 
9,241

 
58,409

 
36,506

Other investments
 
—

 
21

 
40

Other securities (fair value accounting) (2)
 
227,252

 
—

 
—

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
Other investments
 
18,235

 
16,923

 
12,445

Non-marketable securities (cost method accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
10,081

 
3,503

 
2,517

Other investments
 
431

 
1,715

 
6,527

Total gross gains on investment securities
 
455,531

 
203,321

 
242,226

Gross losses on investment securities:
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
(3,349
)
 
(2,139
)
 
(261
)
Marketable securities (fair value accounting)
 
—

 
(1,675
)
 
(8,103
)
Non-marketable securities (fair value accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
(17,185
)
 
(63,146
)
 
(26,591
)
Other venture capital investments
 
(3,496
)
 
(11,062
)
 
(8,918
)
Other investments
 
—

 
—

 
(16
)
Other securities (fair value accounting)
 
(2,962
)
 
—

 
—

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
Other investments
 
(3,111
)
 
(1,987
)
 
(2,241
)
Non-marketable securities (cost method accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments (3)
 
(1,700
)
 
(1,079
)
 
(1,028
)
Other investments (4)
 
(4,320
)
 
(119
)
 
(34
)
Total gross losses on investment securities
 
(36,123
)
 
(81,207
)
 
(47,192
)
Gains on investment securities, net
 
$
419,408

 
$
122,114

 
$
195,034

 
 
(1)
Includes realized gains (losses) on sales of available-for-sale securities that are recognized in the income statement. Unrealized gains (losses) 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.
(2)
Other securities (fair value accounting) and other venture capital investments includes unrealized valuation gains of $219 million for the year ended December 31, 2013 attributable to two of our portfolio companies, FireEye and Twitter. Both FireEye and Twitter are each subject to a lock-up agreement. The extent to which any unrealized gains will become realized is subject to a variety of factors, including, among other things, the expiration of current lock-up agreements to which these securities are subject, the actual sales of securities and the timing of such actual sales.
(3)
Includes OTTI of $1.4 million from the declines in value for 43 of the 288 investments, $1.0 million from the declines in value for 46 of the 324 investments, and 1.0 million from the declines in value for 41 of the 329 investments held at December 31, 2013, 2012, and 2011, respectively. We concluded that any declines in value for the remaining investments were temporary, and as such, no OTTI was required to be recognized.
(4)
Includes OTTI of $3.9 million impairment charge on a single direct equity investment. We concluded that any declines in value for the remaining investments were temporary, and as such, no OTTI was required to be recognized. There were no recognized OTTI amounts for the years ended December 31, 2012 and 2011.