Noninterest Income (Tables)

3 Months Ended

Mar. 31, 2020

Other Income and Expenses [Abstract]

Summary of Noninterest Income

Included below is a summary of noninterest income for the three months ended March 31, 2020 and 2019:

	Three months ended March 31,
(Dollars in thousands)	2020		2019
Noninterest income:
Gains on investment securities, net	$	46,055	$	29,028
Gains on equity warrant assets, net	13,395		21,305
Client investment fees	43,393		44,482
Foreign exchange fees	47,505		38,048
Credit card fees	28,304		27,483
Deposit service charges	24,589		20,939
Lending related fees	13,125		13,937
Letters of credit and standby letters of credit fees	11,542		9,354
Investment banking revenue	46,867		49,795
Commissions	16,022		14,108
Other	11,137		11,897
Total noninterest income	$	301,934	$	280,376

Components of Gains and Losses (Realized and Unrealized) on Investment Securities

A summary of gains and losses on investment securities for the three months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,
(Dollars in thousands)	2020			2019
(Losses) gains on non-marketable and other equity securities, net	$	(15,110	)	$	32,658
Gains (losses) on sales of available-for-sale securities, net	61,165			(3,630		)
Total gains on investment securities, net	$	46,055		$	29,028

Components of Gains on Equity Warrant Assets

A summary of net gains on equity warrant assets for the three months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,
(Dollars in thousands)	2020			2019
Equity warrant assets:
Gains on exercises, net	$	19,193		$	5,482
Terminations	(326		)	(415		)
Changes in fair value, net	(5,472		)	16,238
Total net gains on equity warrant assets	$	13,395		$	21,305

Components of Asset Management Fees

A summary of client investment fees by instrument type for the three months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,
(Dollars in thousands)	2020		2019
Client investment fees by type:
Sweep money market fees	$	23,049	$	26,544
Asset management fees (1)	9,137		6,671
Repurchase agreement fees	11,207		11,267
Total client investment fees (2)	$	43,393	$	44,482

(1) Represents fees earned from investments in third-party money market mutual funds and fixed-income securities managed by SVB Asset Management.

(2)

Represents fees earned on client investment funds which are maintained at third-party financial institutions and are not recorded on our balance sheet.

Components of Foreign Exchange Fees

A summary of foreign exchange fee income by instrument type for the three months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,
(Dollars in thousands)	2020		2019
Foreign exchange fees by instrument type:
Spot contract commissions	$	40,934	$	35,029
Forward contract commissions	6,339		2,995
Option premium fees	232		24
Total foreign exchange fees	$	47,505	$	38,048

Components of Credit Card Fees

A summary of credit card fees by instrument type for the three months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,
(Dollars in thousands)	2020		2019
Credit card fees by instrument type:
Card interchange fees, net	$	21,775	$	21,393
Merchant service fees	5,027		4,534
Card service fees	1,502		1,556
Total credit card fees	$	28,304	$	27,483

Components of Lending Related Fees

A summary of lending related fees by instrument type for the three months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,
(Dollars in thousands)	2020		2019
Lending related fees by instrument type:
Unused commitment fees	$	8,406	$	9,670
Other	4,719		4,267
Total lending related fees	$	13,125	$	13,937

Schedule of Investment Banking Revenue

A summary of investment banking revenue by instrument type for the three months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,
(Dollars in thousands)	2020		2019
Investment banking revenue:
Underwriting fees	$	31,290	$	35,772
Advisory fees	15,487		12,273
Private placements and other	90		1,750
Total investment banking revenue	$	46,867	$	49,795

Summary of Other Noninterest Income

A summary of other noninterest income by instrument type for the three months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,
(Dollars in thousands)	2020			2019
Other noninterest income by instrument type:
Fund management fees	$	7,908		$	8,041
Net losses on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1)	(244		)	(336		)
Other service revenue	3,473			4,192
Total other noninterest income	$	11,137		$	11,897

(1)

Represents the net revaluation of client and internal foreign currency denominated financial instruments. We enter into foreign exchange forward contracts to economically reduce our foreign exchange exposure related to client and internal foreign currency denominated financial instruments.

Disaggregation of Revenue

The following tables present our revenues from contracts with customers disaggregated by revenue source and segment for the three months ended March 31, 2020 and 2019:

Three months ended March 31, 2020 (Dollars in thousands)	Global Commercial Bank (2)		SVB Private   Bank		SVB Capital (2)			SVB Leerink (2)			Other Items		Total
Revenue from contracts with customers:
Client investment fees	$	42,736	$	657	$	—		$	—		$	—	$	43,393
Spot contract commissions	40,675		161		—			—			98		40,934
Card interchange fees, gross	35,724		7		—			—			566		36,297
Merchant service fees	5,027		—		—			—			—		5,027
Deposit service charges	24,238		27		—			—			324		24,589
Investment banking revenue	—		—		—			46,867			—		46,867
Commissions	—		—		—			16,022			—		16,022
Fund management fees	—		—		6,478			1,430			—		7,908
Correspondent bank rebates	1,403		—		—			—			—		1,403
Total revenue from contracts with customers	$	149,803	$	852	$	6,478		$	64,319		$	988	$	222,440
Revenues outside the scope of ASC 606 (1)	17,031		48		(1,560		)	(1,642		)	65,617		79,494
Total noninterest income	$	166,834	$	900	$	4,918		$	62,677		$	66,605	$	301,934

(1) Amounts are accounted for under separate guidance than ASC 606.

(2) Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."

Three months ended March 31, 2019 (Dollars in thousands)	Global Commercial Bank (2)		SVB Private   Bank			SVB Capital (2)		SVB Leerink (2)		Other Items		Total
Revenue from contracts with customers:
Client investment fees (3)	$	44,102	$	380		$	—	$	—	$	—	$	44,482
Spot contract commissions	34,806		122			—		—		101		35,029
Card interchange fees, gross	38,715		—			—		—		147		38,862
Merchant service fees	4,534		—			—		—		—		4,534
Deposit service charges	20,793		35			—		—		111		20,939
Investment banking revenue	—		—			—		49,795		—		49,795
Commissions	—		—			—		14,108		—		14,108
Fund management fees	—		—			6,659		1,382		—		8,041
Correspondent bank rebates	1,467		—			—		—		—		1,467
Total revenue from contracts with customers	$	144,417	$	537		$	6,659	$	65,285	$	359	$	217,257
Revenues outside the scope of ASC 606 (1)	8,444		(27		)	18,186		2,832		33,684		63,119
Total noninterest income	$	152,861	$	510		$	24,845	$	68,117	$	34,043	$	280,376

(1) Amounts are accounted for under separate guidance than ASC 606.

(2) Global Commercial Bank’s and SVB Capital’s components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."

(3) For the three months ended March 31, 2019, the amount of client investment fees previously reported as "Other Items" has been correctly allocated to the reportable segment "Global Commercial Bank" to properly reflect the source of such revenue. The correction of this immaterial error had no impact on the "Total" amount of client investment fees.