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Investment Securities
 3 Months Ended
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
6.
Investment Securities
Our investment securities portfolio consists of: (i) an available-for-sale securities portfolio and a held-to-maturity securities portfolio, both of which represent interest-earning investment securities, and, (ii) a non-marketable and other equity securities portfolio, which primarily represents investments managed as part of our funds management business as well as public equity securities held as a result of equity warrant assets exercised.
Available-for-Sale Securities
The components of our available-for-sale investment securities portfolio at March 31, 2018 and December 31, 2017 are as follows:
 
 
March 31, 2018
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Carrying
Value
Available-for-sale securities, at fair value:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
6,066,397

 
$
—

 
$
(49,520
)
 
$
6,016,877

U.S. agency debentures
 
1,569,943

 
321

 
(8,430
)
 
1,561,834

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
2,198,479

 
97

 
(52,403
)
 
2,146,173

Agency-issued collateralized mortgage obligations—variable rate
 
354,252

 
1,375

 
(127
)
 
355,500

Total available-for-sale securities
 
$
10,189,071

 
$
1,793

 
$
(110,480
)
 
$
10,080,384


 
 
December 31, 2017
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Carrying
Value
Available-for-sale securities, at fair value:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
6,865,068

 
$
1,113

 
$
(25,679
)
 
$
6,840,502

U.S. agency debentures
 
1,569,195

 
3,569

 
(5,636
)
 
1,567,128

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
2,292,311

 
258

 
(25,534
)
 
2,267,035

Agency-issued collateralized mortgage obligations—variable rate
 
372,481

 
1,375

 
(126
)
 
373,730

Equity securities
 
31,953

 
40,525

 
(209
)
 
72,269

Total available-for-sale securities
 
$
11,131,008

 
$
46,840

 
$
(57,184
)
 
$
11,120,664


The following table summarizes sale activity of available-for-sale securities during the three months ended March 31, 2018 and 2017 as recorded in the line item “Gains on investment securities, net”, a component of noninterest income:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2018

2017
Sales proceeds
 
$
—

 
$
2,078

Net realized gains and losses:
 
 
 
 
Gross realized gains
 
—

 
675

Gross realized losses
 
—

 
(67
)
Net realized gains and losses
 
$
—

 
$
608


The following tables summarize our unrealized losses on our available-for-sale securities portfolio into categories of less than 12 months, or 12 months or longer as of March 31, 2018 and December 31, 2017:
 
 
March 31, 2018
 
 
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
 
$
5,319,620

 
$
(45,520
)
 
$
697,257

 
$
(4,000
)
 
$
6,016,877

 
$
(49,520
)
U.S. agency debentures
 
1,079,618

 
(4,168
)
 
335,109

 
(4,262
)
 
1,414,727

 
(8,430
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
2,118,967

 
(52,403
)
 
—

 
—

 
2,118,967

 
(52,403
)
Agency-issued collateralized mortgage obligations—variable rate
 
21,511

 
(7
)
 
50,004

 
(120
)
 
71,515

 
(127
)
Total temporarily impaired securities (1)
 
$
8,539,716

 
$
(102,098
)
 
$
1,082,370

 
$
(8,382
)
 
$
9,622,086

 
$
(110,480
)
 
 
(1)
As of March 31, 2018, we identified a total of 281 investments that were in unrealized loss positions, of which 52 investments totaling $1.1 billion with unrealized losses of $8.4 million have been in an impaired position for a period of time greater than 12 months. As of March 31, 2018, we do not intend to sell any of our impaired 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 March 31, 2018, 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, 2017
 
 
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
 
$
5,968,914

 
$
(23,397
)
 
$
323,966

 
$
(2,282
)
 
$
6,292,880

 
$
(25,679
)
U.S. agency debentures
 
736,541

 
(2,289
)
 
336,196

 
(3,347
)
 
1,072,737

 
(5,636
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
2,193,277

 
(25,534
)
 
—

 
—

 
2,193,277

 
(25,534
)
Agency-issued collateralized mortgage obligations—variable rate
 
13,843

 
(3
)
 
53,186

 
(123
)
 
67,029

 
(126
)
Equity securities
 
624

 
(209
)
 
—

 
—

 
624

 
(209
)
Total temporarily impaired securities (1)
 
$
8,913,199

 
$
(51,432
)
 
$
713,348

 
$
(5,752
)
 
$
9,626,547

 
$
(57,184
)
 
 
(1)
As of December 31, 2017, we identified a total of 268 investments that were in unrealized loss positions, of which 46 investments totaling $713.3 million with unrealized losses of $5.8 million have been in an impaired position for a period of time greater than 12 months.
The following table summarizes the fixed income securities, carried at fair value, classified as available-for-sale as of March 31, 2018 by the remaining contractual principal maturities. For U.S. Treasury securities and U.S. agency debentures, the expected maturity is the actual contractual maturity of the notes. 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 interest rate environments.
 
 
March 31, 2018
(Dollars in thousands)
 
Total
 
One Year
or Less
 
After One
Year to
Five Years
 
After Five
Years to
Ten Years
 
After
Ten Years
U.S. Treasury securities
 
$
6,016,877

 
$
2,213,143

 
$
3,803,734

 
$
—

 
$
—

U.S. agency debentures
 
1,561,834

 
506,280

 
1,055,554

 
—

 
—

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
2,146,173

 
—

 
—

 
66,459

 
2,079,714

Agency-issued collateralized mortgage obligations—variable rate
 
355,500

 
—

 
—

 
—

 
355,500

Total
 
$
10,080,384

 
$
2,719,423

 
$
4,859,288

 
$
66,459

 
$
2,435,214

Held-to-Maturity Securities

The components of our held-to-maturity investment securities portfolio at March 31, 2018 and December 31, 2017 are as follows:
 
 
March 31, 2018
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Held-to-maturity securities, at cost:
 
 
 
 
 
 
 
 
U.S. agency debentures (1)
 
$
714,008

 
$
466

 
$
(6,900
)
 
$
707,574

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
8,043,443

 
6,683

 
(160,250
)
 
7,889,876

Agency-issued collateralized mortgage obligations—fixed rate
 
2,665,485

 
24

 
(81,612
)
 
2,583,897

Agency-issued collateralized mortgage obligations—variable rate
 
243,749

 
718

 
(29
)
 
244,438

Agency-issued commercial mortgage-backed securities
 
1,833,961

 
—

 
(52,121
)
 
1,781,840

Municipal bonds and notes
 
1,048,210

 
691

 
(27,087
)
 
1,021,814

Total held-to-maturity securities
 
$
14,548,856

 
$
8,582

 
$
(327,999
)
 
$
14,229,439

 
 
(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.
 
 
December 31, 2017
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Held-to-maturity securities, at cost:
 
 
 
 
 
 
 
 
U.S. agency debentures (1)
 
$
659,979

 
$
3,167

 
$
(1,601
)
 
$
661,545

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
6,304,969

 
4,854

 
(43,528
)
 
6,266,295

Agency-issued collateralized mortgage obligations—fixed rate
 
2,829,979

 
23

 
(54,372
)
 
2,775,630

Agency-issued collateralized mortgage obligations—variable rate
 
255,782

 
733

 
(34
)
 
256,481

Agency-issued commercial mortgage-backed securities
 
1,868,985

 
694

 
(25,563
)
 
1,844,116

Municipal bonds and notes
 
743,761

 
3,452

 
(3,000
)
 
744,213

Total held-to-maturity securities
 
$
12,663,455

 
$
12,923

 
$
(128,098
)
 
$
12,548,280

 
 
(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 tables summarize our unrealized losses on our held-to-maturity securities portfolio into categories of less than 12 months and 12 months or longer as of March 31, 2018 and December 31, 2017:
 
 
March 31, 2018
 
 
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
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agency debentures
 
$
624,806

 
$
(6,900
)
 
$
—

 
$
—

 
$
624,806

 
$
(6,900
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
5,974,994

 
(144,458
)
 
380,892

 
(15,792
)
 
6,355,886

 
(160,250
)
Agency-issued collateralized mortgage obligations—fixed rate
 
938,137

 
(23,922
)
 
1,645,496

 
(57,690
)
 
2,583,633

 
(81,612
)
Agency-issued collateralized mortgage obligations—variable rate
 
—

 
—

 
9,317

 
(29
)
 
9,317

 
(29
)
Agency-issued commercial mortgage-backed securities
 
1,042,701

 
(30,719
)
 
739,139

 
(21,402
)
 
1,781,840

 
(52,121
)
Municipal bonds and notes
 
803,271

 
(26,367
)
 
20,264

 
(720
)
 
823,535

 
(27,087
)
Total temporarily impaired securities (1)
 
$
9,383,909

 
$
(232,366
)
 
$
2,795,108

 
$
(95,633
)
 
$
12,179,017

 
$
(327,999
)
 
 
(1)
As of March 31, 2018, we identified a total of 1,115 investments that were in unrealized loss positions, of which 223 investments totaling $2.8 billion with unrealized losses of $95.6 million have been in an impaired position for a period of time greater than 12 months. As of March 31, 2018, we do not intend to sell any of our impaired 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 March 31, 2018, 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.
 
 
December 31, 2017
 
 
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
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agency debentures
 
$
104,688

 
$
(1,601
)
 
$
—

 
$
—

 
$
104,688

 
$
(1,601
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
4,270,377

 
(34,092
)
 
408,913

 
(9,436
)
 
4,679,290

 
(43,528
)
Agency-issued collateralized mortgage obligations—fixed rate
 
1,011,709

 
(13,631
)
 
1,741,614

 
(40,741
)
 
2,753,323

 
(54,372
)
Agency-issued collateralized mortgage obligations—variable rate
 
—

 
—

 
9,812

 
(34
)
 
9,812

 
(34
)
Agency-issued commercial mortgage-backed securities
 
979,361

 
(11,566
)
 
773,712

 
(13,997
)
 
1,753,073

 
(25,563
)
Municipal bonds and notes
 
344,796

 
(2,103
)
 
32,844

 
(897
)
 
377,640

 
(3,000
)
Total temporarily impaired securities (1)
 
$
6,710,931

 
$
(62,993
)
 
$
2,966,895

 
$
(65,105
)
 
$
9,677,826

 
$
(128,098
)
 
 
(1)
As of December 31, 2017, we identified a total of 753 investments that were in unrealized loss positions, of which 237 investments totaling $3.0 billion with unrealized losses of $65.1 million have been in an impaired position for a period of time greater than 12 months.
The following table summarizes the remaining contractual principal maturities on fixed income investment securities classified as held-to-maturity as of March 31, 2018. For U.S. agency debentures, the expected maturity is the actual contractual maturity of the notes. 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 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 interest rate environments.
 
 
March 31, 2018
 
 
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
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
U.S. agency debentures
 
$
714,008

 
$
707,574

 
$
—

 
$
—

 
$
122,092

 
$
121,289

 
$
591,916

 
$
586,285

 
$
—

 
$
—

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
8,043,443

 
7,889,876

 
718

 
715

 
198,545

 
194,426

 
273,432

 
266,194

 
7,570,748

 
7,428,541

Agency-issued collateralized mortgage obligations—fixed rate
 
2,665,485

 
2,583,897

 
—

 
—

 
—

 
—

 
438,437

 
422,211

 
2,227,048

 
2,161,686

Agency-issued collateralized mortgage obligations—variable rate
 
243,749

 
244,438

 
—

 
—

 
—

 
—

 
—

 
—

 
243,749

 
244,438

Agency-issued commercial mortgage-backed securities
 
1,833,961

 
1,781,840

 
—

 
—

 
—

 
—

 
—

 
—

 
1,833,961

 
1,781,840

Municipal bonds and notes
 
1,048,210

 
1,021,814

 
8,185

 
8,157

 
73,912

 
72,861

 
237,606

 
229,079

 
728,507

 
711,717

Total
 
$
14,548,856

 
$
14,229,439

 
$
8,903

 
$
8,872

 
$
394,549

 
$
388,576

 
$
1,541,391

 
$
1,503,769

 
$
12,604,013

 
$
12,328,222

Non-marketable and Other Equity Securities
The components of our non-marketable and other equity securities portfolio at March 31, 2018 and December 31, 2017 are as follows:
(Dollars in thousands)
 
March 31, 2018
 
December 31, 2017
Non-marketable and other equity securities:
 
 
 
 
Non-marketable securities (fair value accounting):
 
 
 
 
Consolidated venture capital and private equity fund investments (1)
 
$
130,015

 
$
128,111

Unconsolidated venture capital and private equity fund investments (2)
 
205,651

 
98,548

Other investments without a readily determinable fair value (3)
 
29,825

 
27,680

Other equity securities in public companies (fair value accounting) (4)
 
4,694

 
310

Non-marketable securities (equity method accounting) (5):
 
 
 
 
Venture capital and private equity fund investments
 
97,929

 
89,809

Debt funds
 
18,884

 
21,183

Other investments
 
112,115

 
111,198

Investments in qualified affordable housing projects, net (6)
 
225,823

 
174,214

Total non-marketable and other equity securities
 
$
824,936

 
$
651,053

 
(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 March 31, 2018 and December 31, 2017 (fair value accounting):
 
 
March 31, 2018
 
December 31, 2017
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Strategic Investors Fund, LP
 
$
14,767

 
12.6
%
 
$
14,673

 
12.6
%
Capital Preferred Return Fund, LP
 
56,541

 
20.0

 
54,147

 
20.0

Growth Partners, LP
 
57,706

 
33.0

 
58,372

 
33.0

CP I, LP
 
1,001

 
10.7

 
919

 
10.7

Total consolidated venture capital and private equity fund investments
 
$
130,015

 
 
 
$
128,111

 
 



(2)
The carrying value represents investments in 229 and 235 funds (primarily venture capital funds) at March 31, 2018 and December 31, 2017, 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. Effective January 1, 2018 we adopted ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities which eliminated the concept of cost method accounting. On a prospective basis we will carry our unconsolidated venture capital and private equity fund investments at fair value based on the fund investments' net asset values per share as obtained from the general partners of the investments. We adjust the net asset value per share for differences between our measurement date and the date of the fund investment’s net asset value by using the most recently available financial information from the investee general partner, for example December 31st, for our March 31st consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period. We recorded a cumulative adjustment to opening retained earnings on January 1, 2018 for the difference between fair value and cost for these fund investments. The estimated fair value and carrying value of these venture capital and private equity fund investments was $205.7 million as of March 31, 2018. As of December 31, 2017, these investments were carried at cost and had a carrying value of $98.5 million.
(3)
Effective January 1, 2018 we adopted ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities which eliminated the concept of cost method accounting. On a prospective basis we will report our other investments in the line item "Other investments without a readily determinable fair value". These investments include direct equity investments in private companies. The carrying value is based on the price at which the investment was acquired plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, exit strategies, financing transactions subsequent to the acquisition of the investment and a discount for certain investments that have lock-up restrictions or other features that indicate a discount to fair value is warranted. The following table shows the changes to the carrying amount of other investments without a readily determinable fair value for the three months ended March 31, 2018:
(Dollars in thousands)
 
Other Investments
Carrying value as of December 31, 2017
 
$
27,680

Downward adjustments
 
(2,069
)
Upward adjustments
 
4,214

Carrying value as of March 31, 2018
 
$
29,825

(4)
Investments classified as other equity securities (fair value accounting) represent shares held in public companies as a result of exercising public equity warrant assets and direct public equity investments in public companies held by our consolidated funds. Effective January 1, 2018 we adopted ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities which requires equity securities to be measured at fair value with changes in the fair value recognized through net income. Prior to January 1, 2018 we reported equity securities in public companies that we held as a result of exercising public equity warrant assets in available-for-sale securities. On a prospective basis, these equity securities will be reported in non-marketable and other equity securities.

(5)
The following table shows the carrying value and our ownership percentage of each investment at March 31, 2018 and December 31, 2017 (equity method accounting):
 
 
March 31, 2018
 
December 31, 2017
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Venture capital and private equity fund investments:
 
 
 
 
 
 
 
 
Strategic Investors Fund II, LP
 
$
5,653

 
8.6
%
 
$
6,342

 
8.6
%
Strategic Investors Fund III, LP
 
18,480

 
5.9

 
18,758

 
5.9

Strategic Investors Fund IV, LP
 
27,408

 
5.0

 
25,551

 
5.0

Strategic Investors Fund V funds
 
20,497

 
Various

 
16,856

 
Various

CP II, LP (i)
 
6,797

 
5.1

 
6,700

 
5.1

Other venture capital and private equity fund investments
 
19,094

 
Various

 
15,602

 
Various

 Total venture capital and private equity fund investments
 
$
97,929

 
 
 
$
89,809

 
 
Debt funds:
 
 
 
 
 
 
 
 
Gold Hill Capital 2008, LP (ii)
 
$
15,978

 
15.5
%
 
$
18,690

 
15.5
%
Other debt funds
 
2,906

 
Various

 
2,493

 
Various

Total debt funds
 
$
18,884

 
 
 
$
21,183

 
 
Other investments:
 
 
 
 
 
 
 
 
SPD Silicon Valley Bank Co., Ltd.
 
$
76,384

 
50.0
%
 
$
75,337

 
50.0
%
Other investments
 
35,731

 
Various

 
35,861

 
Various

Total other investments
 
$
112,115

 
 
 
$
111,198

 
 

 
(i)
Our ownership includes direct ownership of 1.3 percent and indirect ownership interest of 3.8 percent through our investments in Strategic Investors Fund II, LP.
(ii)
Our ownership includes 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.

(6)
The following table presents the balances of our investments in qualified affordable housing projects and related unfunded commitments included as a component of “other liabilities” on our consolidated balance sheets at March 31, 2018 and December 31, 2017:
(Dollars in thousands)
 
March 31, 2018
 
December 31, 2017
Investments in qualified affordable housing projects, net
 
$
225,823

 
$
174,214

Other liabilities
 
137,783

 
100,891


The following table presents other information relating to our investments in qualified affordable housing projects for the three months ended March 31, 2018 and 2017:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2018

2017
Tax credits and other tax benefits recognized
 
$
5,422

 
$
4,692

Amortization expense included in provision for income taxes (i)
 
4,792

 
3,236

 
 
(i)
All investments are amortized using the proportional amortization method and amortization expense is included in the provision for income taxes.
The following table presents the net gains and losses on non-marketable and other equity securities for the three months ended March 31, 2018 as recorded in the line item “Gains on investment securities, net”, a component of noninterest income:
 
 
Three months ended March 31,
(Dollars in thousands)
 
2018
 
2017
Net gains (losses) on non-marketable and other equity securities:
 
 
 
 
Non-marketable securities (fair value accounting):
 
 
 
 
Consolidated venture capital and private equity fund investments
 
$
11,647

 
$
6,463

Unconsolidated venture capital and private equity fund investments (1)
 
11,719

 
3,047

Other investments without a readily determinable fair value (1)
 
1,741

 
3,373

Other equity securities in public companies (fair value accounting) (1)
 
(22,282
)
 
(82
)
Non-marketable securities (equity method accounting):
 


 


Venture capital and private equity fund investments
 
9,569

 
3,734

Debt funds
 
(2,299
)
 
(431
)
Other investments
 
(1,037
)
 
(742
)
Total net gains on non-marketable and other securities
 
$
9,058

 
$
15,362

Less: Net (losses) gains on investment securities sold
 
(22,490
)
 
3,373

Unrealized net gains on investment securities still held
 
$
31,548

 
$
11,989

 
 
(1)
Prior period amounts are not determined in a manner consistent with the current period presentation due to the adoption of accounting standard update (ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825)).