Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2018

Our segment information for 2018, 2017 and 2016 is as follows:



(Dollars in thousands)	Global Commercial Bank (1)			SVB Private Bank			SVB Capital (1)			Other Items (2)			Total
Year ended December 31, 2018
Net interest income	$	1,623,488		$	64,902		$	23		$	205,575		$	1,893,988
Provision for credit losses	(80,953		)	(3,339		)	—			(3,578		)	(87,870		)
Noninterest income	444,647			2,281			101,181			196,875			744,984
Noninterest expense (3)	(793,159		)	(25,064		)	(22,792		)	(347,178		)	(1,188,193		)
Income before income tax expense (4)	$	1,194,023		$	38,780		$	78,412		$	51,694		$	1,362,909
Total average loans, net of unearned income	$	22,354,305		$	2,850,271		$	—		$	425,944		$	25,630,520
Total average assets (5)	53,012,381			2,546,904			380,543			(710,768		)	55,229,060
Total average deposits	46,039,570			1,502,308			—			533,466			48,075,344
Year ended December 31, 2017
Net interest income	$	1,274,366		$	58,131		$	48		$	87,824		$	1,420,369
Provision for credit losses	(81,553		)	(4,386		)	—			(6,365		)	(92,304		)
Noninterest income	363,759			2,175			58,992			132,305			557,231
Noninterest expense (3)	(707,666		)	(17,693		)	(19,340		)	(265,956		)	(1,010,655		)
Income (loss) before income tax expense (4)	$	848,906		$	38,227		$	39,700		$	(52,192	)	$	874,641
Total average loans, net of unearned income	$	18,479,793		$	2,423,078		$	—		$	256,523		$	21,159,394
Total average assets (5)	46,302,350			2,449,763			325,939			(697,780		)	48,380,272
Total average deposits	41,043,731			1,303,542			—			397,875			42,745,148
Year ended December 31, 2016
Net interest income (expense)	$	1,040,712		$	53,582		$	(49	)	$	56,278		$	1,150,523
Provision for credit losses	(93,885		)	(1,812		)	—			(10,982		)	(106,679		)
Noninterest income	318,366			2,713			49,365			86,108			456,552
Noninterest expense (3)	(630,655		)	(12,379		)	(15,546		)	(201,217		)	(859,797		)
Income (loss) before income tax expense (4)	$	634,538		$	42,104		$	33,770		$	(69,813	)	$	640,599
Total average loans, net of unearned income	$	16,047,545		$	2,025,381		$	—		$	210,665		$	18,283,591
Total average assets (5)	41,495,332			2,047,513			338,848			105,758			43,987,451
Total average deposits	37,301,483			1,133,425			—			324,151			38,759,059


(1)	Global Commercial Bank’s and SVB Capital’s components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. Noncontrolling interest is included within "Other Items."

(2)

The "Other Items" column reflects the adjustments necessary to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Net interest income consists primarily of interest earned from our fixed income investment portfolio, net of FTP. Noninterest income consists primarily of gains on equity warrant assets and gains or losses on the sale of fixed income investments and equity securities from exercised warrant assets. Noninterest expense consists primarily of expenses associated with corporate support functions such as finance, human resources, marketing, legal and other expenses.


(3)	The Global Commercial Bank segment includes direct depreciation and amortization of $21.8 million, $25.3 million and $24.9 million for 2018, 2017 and 2016, respectively.


(4)	The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates.


(5)	Total average assets equal the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for each segment to reconcile the results to the consolidated financial statements prepared in conformity with GAAP.