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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]  
Major Components of Investment Securities Portfolio
The major components of our available-for-sale investment securities portfolio at September 30, 2014 and December 31, 2013 are as follows:
 
 
September 30, 2014
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Carrying
Value
Available-for-sale securities, at fair value:
 
 
 
 
 
 
 
 
U.S. treasury securities
 
$
6,886,952

 
$
2,245

 
$
(12,898
)
 
$
6,876,299

U.S. agency debentures
 
3,592,129

 
28,744

 
(15,040
)
 
3,605,833

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
2,003,337

 
20,671

 
(18,075
)
 
2,005,933

Agency-issued collateralized mortgage obligations—variable rate
 
830,139

 
5,818

 
—

 
835,957

Equity securities
 
9,502

 
749

 
(837
)
 
9,414

Total available-for-sale securities
 
$
13,322,059

 
$
58,227

 
$
(46,850
)
 
$
13,333,436


 
 
December 31, 2013
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Carrying
Value
Available-for-sale securities, at fair value:
 
 
 
 
 
 
 
 
U.S. agency debentures
 
$
4,344,652

 
$
41,365

 
$
(40,785
)
 
$
4,345,232

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

 
17,189

 
(16,141
)
 
2,473,576

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

 
24,510

 
(85,422
)
 
3,325,758

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

 
3,363

 
(123
)
 
1,186,573

Agency-issued commercial mortgage-backed securities
 
581,475

 
552

 
(17,423
)
 
564,604

Municipal bonds and notes
 
82,024

 
4,024

 
(21
)
 
86,027

Equity securities
 
4,842

 
692

 
(483
)
 
5,051

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

 
$
91,695

 
$
(160,398
)
 
$
11,986,821
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, 2014:
 
 
September 30, 2014
 
 
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
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury securities
 
$
4,736,436

 
$
(12,898
)
 
$
—

 
$
—

 
$
4,736,436

 
$
(12,898
)
U.S. agency debentures
 
688,808

 
(2,373
)
 
553,231

 
(12,667
)
 
1,242,039

 
(15,040
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
659,886

 
(2,523
)
 
469,850

 
(15,552
)
 
1,129,736

 
(18,075
)
Equity securities
 
5,546

 
(837
)
 
—

 
—

 
5,546

 
(837
)
Total temporarily impaired securities: (1)
 
$
6,090,676

 
$
(18,631
)
 
$
1,023,081

 
$
(28,219
)
 
$
7,113,757

 
$
(46,850
)
 
 
(1)
As of September 30, 2014, we identified a total of 182 investments that were in unrealized loss positions, of which 34 investments totaling $1.0 billion with unrealized losses of $28.2 million have been in an impaired position for a period of time greater than 12 months. As of September 30, 2014, we do not intend to sell any impaired fixed income investment 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, 2014, 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, 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
 
910

 
(483
)
 
—

 
—

 
910

 
(483
)
Total temporarily impaired securities 
 
$
5,978,236

 
$
(152,383
)
 
$
154,250

 
$
(8,015
)
 
$
6,132,486

 
$
(160,398
)
Summary of Remaining Contractual Principal Maturities and Fully Taxable Equivalent Yields on Securities
The following table summarizes the remaining contractual principal maturities and fully taxable equivalent yields on fixed income investment securities classified as available-for-sale as of September 30, 2014. The weighted average yield is computed using the amortized cost of fixed income investment 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.
 
 
September 30, 2014
 
 
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
 
$
6,876,299

 
1.08
%
 
$
100,189

 
0.15
%
 
$
6,041,278

 
0.99
%
 
$
734,832

 
1.97
%
 
$
—

 
—
%
U.S. agency debentures
 
3,605,833

 
1.63

 
695,199

 
1.64

 
2,225,869

 
1.52

 
684,765

 
2.01

 
—

 
—

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations - fixed rate
 
2,005,933

 
2.01

 
—

 
—

 
—

 
—

 
483,473

 
2.59

 
1,522,460

 
1.83

Agency-issued collateralized mortgage obligations - variable rate
 
835,957

 
0.71

 
—

 
—

 
—

 
—

 
—

 
—

 
835,957

 
0.71

Total
 
$
13,324,022

 
1.35

 
$
795,388

 
1.45

 
$
8,267,147

 
1.13

 
$
1,903,070

 
2.14

 
$
2,358,417

 
1.43

Mortgage-backed securities classified as held-to-maturity 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.
 
 
September 30, 2014
 
 
Total
 
One Year
or Less
 
After One Year to
Five Years
 
After Five Years to
Ten Years
 
After
Ten Years
(Dollars in thousands)
 
Amortized Cost
 
Weighted-
Average
Yield
 
Amortized Cost
 
Weighted-
Average
Yield
 
Amortized Cost
 
Weighted-
Average
Yield
 
Amortized Cost
 
Weighted-
Average
Yield
 
Amortized Cost
 
Weighted-
Average
Yield
U.S. agency debentures
 
$
349,993

 
2.90
%
 
$
—

 
—
%
 
$
—

 
—
%
 
$
349,993

 
2.90
%
 
$
—

 
—
%
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
2,919,715

 
2.42

 
—

 
—

 
45,081

 
2.39

 
901,721

 
2.20

 
1,972,913

 
2.52

Agency-issued collateralized mortgage obligations - fixed rate
 
2,489,538

 
1.68

 
—

 
—

 
—

 
—

 
—

 
—

 
2,489,538

 
1.68

Agency-issued collateralized mortgage obligations - variable rate
 
139,182

 
0.65

 
—

 
—

 
—

 
—

 
—

 
—

 
139,182

 
0.65

Agency-issued commercial mortgage-backed securities
 
679,379

 
2.16

 
—

 
—

 
—

 
—

 
—

 
—

 
679,379

 
2.16

Municipal bonds and notes
 
84,218

 
6.00

 
3,470

 
5.37

 
27,900

 
5.84

 
40,475

 
6.07

 
12,373

 
6.30

Total
 
$
6,662,025

 
2.15

 
$
3,470

 
5.37

 
$
72,981

 
3.71

 
$
1,292,189

 
2.51

 
$
5,293,385

 
2.03
Held-to-maturity Securities
The major components of our held-to-maturity investment securities portfolio at September 30, 2014 are as follows:
 
 
September 30, 2014
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Held-to-maturity securities, at cost:
 
 
 
 
 
 
 
 
U.S. agency debentures (1)
 
$
349,993

 
$
1,588

 
$
(1,165
)
 
$
350,416

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
2,919,715

 
16

 
(20,712
)
 
2,899,019

Agency-issued collateralized mortgage obligations—fixed rate
 
2,489,538

 
384

 
(24,052
)
 
2,465,870

Agency-issued collateralized mortgage obligations—variable rate
 
139,182

 
7

 
(14
)
 
139,175

Agency-issued commercial mortgage-backed securities
 
679,379

 
350

 
(4,391
)
 
675,338

Municipal bonds and notes
 
84,218

 
81

 
(224
)
 
84,075

Total held-to-maturity securities
 
$
6,662,025

 
$
2,426

 
$
(50,558
)
 
$
6,613,893

 
 
(1)
Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.
 
The following table summarizes our unrealized losses on our held-to-maturity securities portfolio into categories of less than 12 months and 12 months or longer as of September 30, 2014:
 
 
September 30, 2014
 
 
Less than 12 months
 
12 months or longer (1)
 
Total
(Dollars in thousands)
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agency debentures
 
$
205,383

 
$
(837
)
 
$
47,987

 
$
(328
)
 
$
253,370

 
$
(1,165
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
2,890,039

 
(20,712
)
 
—

 
—

 
2,890,039

 
(20,712
)
Agency-issued collateralized mortgage obligations—fixed rate
 
1,316,900

 
(12,438
)
 
806,042

 
(11,614
)
 
2,122,942

 
(24,052
)
Agency-issued collateralized mortgage obligations—variable rate
 
77,567

 
(14
)
 
—

 
—

 
77,567

 
(14
)
Agency-issued commercial mortgage-backed securities
 
578,687

 
(4,391
)
 
—

 
—

 
578,687

 
(4,391
)
Municipal bonds and notes
 
55,365

 
(224
)
 
—

 
—

 
55,365

 
(224
)
Total temporarily impaired securities (2):
 
$
5,123,941

 
$
(38,616
)
 
$
854,029

 
$
(11,942
)
 
$
5,977,970

 
$
(50,558
)
 
 
(1)
Represents securities in an unrealized loss position for twelve months or longer in which the amortized cost basis was re-set for those securities re-designated from AFS to HTM effective June 1, 2014.
(2)
As of September 30, 2014, we identified a total of 329 investments that were in unrealized loss positions, of which 28 investments totaling $854.0 million with unrealized losses of $11.9 million have been in an impaired position for a period of time greater than 12 months. As of September 30, 2014, we do not intend to sell any impaired fixed income investment 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, which is consistent with our classification of these securities. Based on our analysis as of September 30, 2014, we deem all impairments to be temporary. Market valuations and impairment analyses on assets in the held-to-maturity securities portfolio are reviewed and monitored on a quarterly basis.
Schedule of Nonmarketable and Other Securities
The major components of our non-marketable and other investment securities portfolio at September 30, 2014 and December 31, 2013 are as follows:
(Dollars in thousands)
 
September 30, 2014
 
December 31, 2013
Non-marketable and other securities:
 
 
 
 
Non-marketable securities (fair value accounting):
 
 
 
 
Venture capital and private equity fund investments (1)
 
$
1,078,911

 
$
862,972

Other venture capital investments (2)
 
43,863

 
32,839

Other securities (fair value accounting) (3)
 
181,265

 
321,374

Non-marketable securities (equity method accounting):
 
 
 
 
Other investments (4)
 
141,913

 
142,883

Low income housing tax credit funds
 
98,417

 
72,241

Non-marketable securities (cost method accounting):
 
 
 
 
Venture capital and private equity fund investments (5)
 
142,710

 
148,994

Other investments
 
16,471

 
14,191

Total non-marketable and other securities
 
$
1,703,550

 
$
1,595,494

 
(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, 2014 and December 31, 2013 (fair value accounting):
 
 
September 30, 2014
 
December 31, 2013
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
SVB Strategic Investors Fund, LP
 
$
25,625

 
12.6
%
 
$
29,104

 
12.6
%
SVB Strategic Investors Fund II, LP
 
92,681

 
8.6

 
96,185

 
8.6

SVB Strategic Investors Fund III, LP
 
248,816

 
5.9

 
260,272

 
5.9

SVB Strategic Investors Fund IV, LP
 
308,332

 
5.0

 
226,729

 
5.0

Strategic Investors Fund V Funds
 
214,863

 
Various

 
118,181

 
Various

Strategic Investors Fund VI Funds
 
56,958

 
0.2

 
7,944

 
0.2

SVB Capital Preferred Return Fund, LP
 
61,876

 
20.0

 
59,028

 
20.0

SVB Capital—NT Growth Partners, LP
 
61,818

 
33.0

 
61,126

 
33.0

SVB Capital Partners II, LP (i)
 
302

 
5.1

 
708

 
5.1

Other private equity fund (ii)
 
7,640

 
58.2

 
3,695

 
58.2

Total venture capital and private equity fund investments
 
$
1,078,911

 
 
 
$
862,972

 
 
 
 
(i)
At September 30, 2014, 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, 2014, 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, 2014 and December 31, 2013 (fair value accounting):
 
 
September 30, 2014
 
December 31, 2013
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Silicon Valley BancVentures, LP
 
$
5,616

 
10.7
%
 
$
6,564

 
10.7
%
SVB Capital Partners II, LP (i)
 
17,802

 
5.1

 
22,684

 
5.1

Capital Partners III, LP
 
15,000

 
0.4

 
—

 
—

SVB Capital Shanghai Yangpu Venture Capital Fund
 
5,445

 
6.8

 
3,591

 
6.8

Total other venture capital investments
 
$
43,863

 
 
 
$
32,839

 
 
 
 
(i)
At September 30, 2014, 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. At September 30, 2014, the amount primarily includes total unrealized gains of $143.8 million in one public company, FireEye, Inc. ("FireEye"). The extent to which any unrealized gains (or losses) will become realized is subject to a variety of factors, including among other things, changes in prevailing market prices and the timing of any sales or distribution of securities, which are subject to our funds' separate discretionary securities sales/distribution and governance processes and may also be constrained by lock-up agreements. None of the FireEye related investments currently are subject to a lock-up agreement.
(4)
The following table shows the carrying value and our ownership percentage of each investment at September 30, 2014 and December 31, 2013 (equity method accounting):
 
 
September 30, 2014
 
December 31, 2013
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Gold Hill Capital 2008, LP (i)
 
$
20,685

 
15.5
%
 
$
21,867

 
15.5
%
China Joint Venture investment
 
79,457

 
50.0

 
79,940

 
50.0

Other investments
 
41,771

 
Various

 
41,076

 
Various

Total other investments (equity method accounting)
 
$
141,913

 
 
 
$
142,883

 
 
 
 
(i)
At September 30, 2014, 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 281 and 288 funds (primarily venture capital funds) at September 30, 2014 and December 31, 2013, 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. The carrying value, and estimated fair value, of these venture capital and private equity fund investments (cost method accounting) was $143 million, and $240 million, respectively, as of September 30, 2014. 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, respectively, as of December 31, 2013.
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, 2014 and 2013:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2014
 
2013
 
2014
 
2013
Gross gains on investment securities:
 
 
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
$
45

 
$
317

 
$
642

 
$
3,167

Non-marketable securities (fair value accounting):
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments
 
69,044

 
35,826

 
268,483

 
107,546

Other venture capital investments
 
6,779

 
5,180

 
11,334

 
8,020

Other securities (fair value accounting) (2)
 
5,444

 
143,840

 
136,010

 
148,185

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
 
 
Other investments
 
2,239

 
6,569

 
8,767

 
14,038

Non-marketable securities (cost method accounting):
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments
 
2,641

 
5,016

 
7,706

 
6,806

Other investments
 
19

 
34

 
5,174

 
370

Total gross gains on investment securities
 
86,211

 
196,782

 
438,116

 
288,132

Gross losses on investment securities:
 
 
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
(1,035
)
 
(98
)
 
(18,052
)
 
(2,218
)
Non-marketable securities (fair value accounting):
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments
 
(25,584
)
 
(1,575
)
 
(76,243
)
 
(17,020
)
Other venture capital investments
 
(1,233
)
 
(587
)
 
(3,274
)
 
(2,241
)
Other securities (fair value accounting) (2)
 
(52,264
)
 
(75
)
 
(166,051
)
 
(2,609
)
Non-marketable securities (equity method accounting):
 
 
 
 
 
 
 
 
Other investments
 
(179
)
 
(1,944
)
 
(1,219
)
 
(2,421
)
Non-marketable securities (cost method accounting):
 
 
 
 
 
 
 
 
Venture capital and private equity fund investments (3)
 
(272
)
 
(689
)
 
(781
)
 
(1,462
)
Other investments
 
—

 
(3,952
)
 
(260
)
 
(4,300
)
Total gross losses on investment securities
 
(80,567
)
 
(8,920
)
 
(265,880
)
 
(32,271
)
Gains on investment securities, net
 
$
5,644

 
$
187,862

 
$
172,236

 
$
255,861

 
 
(1)
Includes realized gains (losses) on sales of available-for-sale equity securities that are recognized in the income statement. Unrealized gains (losses) on available-for-sale fixed income and equity 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) includes net losses of $49.8 million for the three months ended September 30, 2014, and net losses of $21.7 million (including $66.5 million of realized gains) for the nine months ended September 30, 2014, attributable to one public company, FireEye. The extent to which any unrealized gains (or losses) will become realized is subject to a variety of factors, including among other things, changes in prevailing market prices and the timing of any sales or distribution of securities, which are subject to our securities sales and governance processes and may also be constrained by lock-up agreements. None of the FireEye related investments currently are subject to a lock-up agreement.
(3)
For the three months ended September 30, 2014 and 2013, includes OTTI losses of $0.3 million from the declines in value for 5 of the 281 investments and $0.4 million from the declines in value for 12 of the 293 investments, respectively. For the nine months ended September 30, 2014 and 2013, includes OTTI losses of $0.7 million from the declines in value for 22 of the 281 investments and $1.2 million from the declines in value for 37 of the 293 investments, respectively. We concluded that any declines in value for the remaining investments were temporary, and as such, no OTTI was required to be recognized.