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Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments Loans and Allowance for Credit Losses: Loans and Unfunded Credit CommitmentsWe serve a variety of commercial clients in the technology, life science/healthcare, private equity/venture capital and premium wine industries. Our technology clients generally tend to be in the industries of hardware (such as semiconductors, communications, data, storage and electronics), software/internet (such as infrastructure software, applications, software services, digital content and advertising technology) and energy and resource innovation (“ERI”). Our life science/healthcare clients primarily tend to be in the industries of biotechnology, medical devices, healthcare information technology and healthcare services. Loans to our technology, life science/healthcare and ERI clients are reported under the Investor Dependent, Cash Flow Dependent and Balance Sheet Dependent risk-based segments below. Loans made to private equity/venture capital firm clients typically enable them to fund investments prior to their receipt of funds from capital calls and are reported under the Global Fund Banking (previously Private Equity/Venture Capital) portfolio segment below. Loans to the premium wine industry focus on vineyards and wineries that produce grapes and wines of high quality. In addition to commercial loans, we make consumer loans through SVB Private Bank and provide real estate secured loans to eligible employees through our EHOP.
We also provide community development loans made as part of our responsibilities under the CRA. These loans are included within “construction loans” below and are primarily secured by real estate. Additionally, beginning in April 2020, we accepted applications under the PPP administered by the SBA under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") and originated loans to qualified small businesses.
CECL Adoption
On January 1, 2020, we adopted the new credit loss guidance, CECL, and all related amendments. Our loan portfolio was pooled into six portfolio segments that share similar risk characteristics and represent the level at which we developed our systematic methodology to determine our allowance for credit losses. Further, our portfolio segments were disaggregated and grouped into ten classes of financing receivable that represent the level at which we monitor and assess credit risk, which we refer to as "risk-based segments". As such, our funded loans and credit quality disclosures below are presented at the risk-based segment level of disaggregation. As of September 30, 2020, we have six portfolio segments and eleven risk-based segments reflective of the funding of SBA loans under the PPP. The comparative information below has been reclassified to conform to current period risk-based segment presentations. However, the financial results continue to be reported under the accounting standards in effect for those periods. Certain prior period credit quality disclosures related to impaired loans and our individually and collectively evaluated loan portfolio have been superseded with the current guidance and have not been included below, please refer to Note 10 - “Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments" under Part II, Item 8 of our 2019 Form 10-K for additional prior period information.
Refer to Note 1 — “Basis of Presentation” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional information regarding the adoption of CECL.
The composition of loans at amortized cost basis broken out by risk-based segment at September 30, 2020 and December 31, 2019 is presented in the following table:
(Dollars in thousands)September 30, 2020December 31, 2019
Global fund banking$19,584,518 $17,696,794 
Investor dependent:
Early stage1,470,941 1,624,221 
Mid stage1,626,794 1,047,398 
Later stage2,013,934 1,663,576 
Total investor dependent5,111,669 4,335,195 
Cash flow dependent:
Sponsor led buyout2,062,243 2,185,497 
Other2,600,157 2,238,741 
Total cash flow dependent4,662,400 4,424,238 
Private bank (1) (5)4,424,899 3,492,269 
Balance sheet dependent1,698,220 1,286,153 
Premium wine (1) (5)1,081,963 1,062,264 
Other (1) (5)48,206 867,723 
SBA loans1,802,016 — 
Total loans (2) (3) (4)$38,413,891 $33,164,636 
Allowance for credit losses(512,958)(304,924)
Net loans$37,900,933 $32,859,712 
(1)    As of September 30, 2020, as a result of enhanced portfolio characteristic definitions for our risk-based segments, loans in the amount of $411.2 million and $50.3 million that would have been reported in Other under historical definitions, are now being reported in our Private Bank and Premium Wine risk-based segments, respectively.
(2)    Total loans at amortized cost is net of unearned income of $222 million and $163 million at September 30, 2020 and December 31, 2019, respectively.
(3)     Included within our total loan portfolio are credit card loans of $329 million and $395 million at September 30, 2020 and December 31, 2019, respectively.
(4)     Included within our total loan portfolio are construction loans of $118 million and $183 million at September 30, 2020 and December 31, 2019, respectively.
(5)     Of our total loans, the table below includes those secured by real estate at amortized cost at September 30, 2020 and
December 31, 2019 and were comprised of the following:
(Dollars in thousands)September 30, 2020December 31, 2019
Real estate secured loans:
Private bank:
Loans for personal residence
$3,179,148 $2,829,880 
Loans to eligible employees
449,551 401,396 
Home equity lines of credit
50,929 55,461 
Other
137,320 38,880 
Total private bank loans secured by real estate
$3,816,948 $3,325,617 
Premium wine
831,182 820,730 
Other
60,501 — 
Total real estate secured loans$4,708,631 $4,146,347 
Credit Quality Indicators
For each individual client, we establish an internal credit risk rating for that loan, which is used for assessing and monitoring credit risk as well as performance of the loan and the overall portfolio. Our internal credit risk ratings are also used to summarize the risk of loss due to failure by an individual borrower to repay the loan. For our internal credit risk ratings, each individual loan is given a risk rating of 1 through 10. Loans risk-rated 1 through 4 are performing loans and translate to an internal rating of “Pass,” with loans risk-rated 1 being cash secured. Loans risk-rated 5 through 7 are performing loans; however, we consider them as demonstrating higher risk, which requires more frequent review of the individual exposures; these translate to an internal rating of “Criticized.” All of our nonaccrual loans are risk-rated 8 or 9 and are classified under the nonperforming category. Loans rated 10 are charged-off and are not included as part of our loan portfolio balance. We review our credit quality indicators on a quarterly basis for performance and appropriateness of risk ratings as part of our evaluation process for our allowance for credit losses for loans.
The following table summarizes the credit quality indicators, broken out by risk-based segment, as of September 30, 2020 and December 31, 2019:
(Dollars in thousands)PassCriticizedNonperforming (Nonaccrual)Total
September 30, 2020:
Global fund banking$19,576,723 $7,782 $13 $19,584,518 
Investor dependent:
Early stage1,296,789 154,420 19,732 1,470,941 
Mid stage1,449,525 165,642 11,627 1,626,794 
Later stage1,795,229 180,130 38,575 2,013,934 
Total investor dependent4,541,543 500,192 69,934 5,111,669 
Cash flow dependent:
Sponsor led buyout1,827,943 212,708 21,592 2,062,243 
Other2,314,453 279,419 6,285 2,600,157 
Total cash flow dependent4,142,396 492,127 27,877 4,662,400 
Private bank4,395,531 23,936 5,432 4,424,899 
Balance sheet dependent1,565,597 131,947 676 1,698,220 
Premium wine941,511 138,777 1,675 1,081,963 
Other48,041 61 104 48,206 
SBA loans1,663,383 138,633 — 1,802,016 
Total loans (1)$36,874,725 $1,433,455 $105,711 $38,413,891 
December 31, 2019:
Global fund banking$17,708,550 $4,247 $— $17,712,797 
Investor dependent
Early stage1,436,022 206,310 11,093 1,653,425 
Mid stage924,002 125,451 17,330 1,066,783 
Later stage1,490,561 201,819 6,296 1,698,676 
Total investor dependent3,850,585 533,580 34,719 4,418,884 
Cash flow dependent
Sponsor led buyout2,039,847 118,588 44,585 2,203,020 
Other2,141,766 93,400 17,681 2,252,847 
Total cash flow dependent4,181,613 211,988 62,266 4,455,867 
Private bank3,472,138 11,601 5,480 3,489,219 
Balance sheet dependent1,231,961 65,343 — 1,297,304 
Premium wine1,026,973 36,335 204 1,063,512 
Other890,059 62 — 890,121 
Total loans (1)$32,361,879 $863,156 $102,669 $33,327,704 
(1)As of September 30, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed using the gross basis.
The following table summarizes the credit quality indicators, broken out by risk-based segment and vintage year, as of September 30, 2020:
Term Loans by Origination Year
(Dollars in thousands)20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Global fund banking:
Risk rating:
Pass
$271,164 $156,714 $70,084 $36,907 $2,552 $11,588 $19,022,934 $4,780 $19,576,723 
Criticized
8 — — — — — 994 6,780 7,782 
Nonperforming— 8 — — — — 5 — 13 
Total global fund banking$271,172 $156,722 $70,084 $36,907 $2,552 $11,588 $19,023,933 $11,560 $19,584,518 
Investor dependent:
Early stage:
Risk rating:
Pass
$589,224 $452,550 $140,448 $37,911 $2,430 $390 $73,199 $637 $1,296,789 
Criticized
20,744 68,381 36,841 10,878 2,530 363 13,750 933 154,420
Nonperforming
2,466 8,870 6,956 463 — 4 973 — 19,732
Total early stage$612,434 $529,801 $184,245 $49,252 $4,960 $757 $87,922 $1,570 $1,470,941 
Mid stage:
Risk rating:
Pass
$726,708 $344,458 $209,372 $39,603 $7,510 $2,725 $116,655 $2,494 $1,449,525 
Criticized
59,623 43,386 32,668 12,725 1,966 — 15,274 — 165,642
Nonperforming
2 2,558 5,405 3,519 — — 143 — 11,627
Total mid stage$786,333 $390,402 $247,445 $55,847 $9,476 $2,725 $132,072 $2,494 $1,626,794 
Later stage:
Risk rating:
Pass
$790,085 $473,800 $178,768 $60,009 $562 $9,110 $277,911 $4,984 $1,795,229 
Criticized
17,108 72,028 30,280 2,666 — 8,708 49,340 — 180,130
Nonperforming
17,506 1,886 12,434 — — — 6,749 — 38,575
Total later stage$824,699 $547,714 $221,482 $62,675 $562 $17,818 $334,000 $4,984 $2,013,934 
Total investor dependent$2,223,466 $1,467,917 $653,172 $167,774 $14,998 $21,300 $553,994 $9,048 $5,111,669 
Cash flow dependent:
Sponsor led buyout:
Risk rating:
Pass
$534,579 $601,938 $326,172 $226,326 $50,267 $— $88,661 $— $1,827,943 
Criticized
43,221 70,050 53,043 21,400 12,238 — 12,756 — 212,708
Nonperforming
33 11,907 — 7,200 — — 2,452 — 21,592
Total sponsor led buyout
$577,833 $683,895 $379,215 $254,926 $62,505 $— $103,869 $— $2,062,243 
Other
Risk rating:
Pass
$465,243 $574,231 $189,501 $116,918 $39,627 $346 $928,587 $— $2,314,453 
Criticized9,589 55,118 74,916 956 416 — 138,424 — 279,419
Nonperforming— — 3,845 — — — 2,440 — 6,285
Total other$474,832 $629,349 $268,262 $117,874 $40,043 $346 $1,069,451 $— $2,600,157 
Total cash flow dependent$1,052,665 $1,313,244 $647,477 $372,800 $102,548 $346 $1,173,320 $— $4,662,400 
Private bank:
Risk rating:
Pass
$1,191,024 $1,212,000 $420,440 $397,847 $342,594 $463,198 $368,107 $321 $4,395,531 
Criticized
1,456 5,549 3,040 1,201 5,101 6,802 787 — 23,936 
Nonperforming
— 520 2,475 — — 1,702 735 — 5,432 
Total private bank$1,192,480 $1,218,069 $425,955 $399,048 $347,695 $471,702 $369,629 $321 $4,424,899 
Balance sheet dependent:
Risk rating:
Pass
$374,768 $202,185 $237,529 $31,838 $— $— $717,771 $1,506 $1,565,597 
Criticized
60,238 8,877 5,559 610 — — 56,663 — 131,947 
Nonperforming
— — — — — 675 1 — 676 
Total balance sheet dependent
$435,006 $211,062 $243,088 $32,448 $— $675 $774,435 $1,506 $1,698,220 
Premium wine:
Risk rating:
Pass
$154,624 $181,416 $70,297 $84,221 $102,297 $156,397 $154,685 $37,574 $941,511 
Criticized
14,001 26,446 35,898 338 13,674 8,210 40,210 — 138,777 
Nonperforming
————1,662 — 13 — 1,675 
Total Premium wine$168,625 $207,862 $106,195 $84,559 $117,633 $164,607 $194,908 $37,574 $1,081,963 
Other:
Risk rating:
Pass
$1,474 $23,286 $13,092 $1,900 $— $80 $8,209 $— $48,041 
Criticized
22 — — — — — 39 — 61 
Nonperforming
—104———— — — 104 
Total other
$1,496 $23,390 $13,092 $1,900 $— $80 $8,248 $— $48,206 
SBA loans:
Risk rating:
Pass
$1,663,383 $— $— $— $— $— $— $— $1,663,383 
Criticized
138,633 — — — — — — — 138,633 
Nonperforming
—————— — — — 
Total SBA loans
$1,802,016 $— $— $— $— $— $— $— $1,802,016 
Total loans$7,146,926 $4,598,266 $2,159,063 $1,095,436 $585,426 $670,298 $22,098,467 $60,009 $38,413,891 
Allowance for Credit Losses: Loans
In the third quarter of 2020, ACL for loans decreased $76.9 million primarily driven by an improved economic forecast in Moody’s Analytics September 2020 forecast utilized in our quantitative model, as compared to the forecast utilized in June 2020. Those assumptions included an improvement in the unemployment rate as a result of businesses re-opening and the effect of government aid programs. The gross domestic product contraction rate also improved in the September 2020 forecast. We determined the above forecast to be a reasonable view of the outlook for the economy given the available information at current quarter end. To the extent we identified credit risk considerations that were not captured by the Moody's Analytics September 2020 forecast, we addressed the risk through management's qualitative adjustments to our ACL.
The following tables summarize the activity relating to our allowance for credit losses for loans for the three and nine months ended September 30, 2020 and 2019, broken out by risk-based segment:
Three months ended September 30, 2020Beginning Balance June 30, 2020Charge-offsRecoveries(Reduction) Provision for Credit LossesForeign Currency Translation AdjustmentsEnding Balance September 30, 2020
(Dollars in thousands)
Global fund banking$53,723 $— $— $(14,734)$— $38,989 
Investor dependent:
Early stage148,270 (14,950)2,511 (33,171)(101)102,559 
Mid stage56,393 (7,162)697 12,578 (88)62,418 
Later stage87,604 (6,205)600 15,792 (80)97,711 
Total investor dependent292,267 (28,317)3,808 (4,801)(269)262,688 
Cash flow dependent:
Sponsor led buyout54,853 (130)— (3,062)— 51,661 
Other43,100 — — (2,779)— 40,321 
Total cash flow dependent97,953 (130)— (5,841)— 91,982 
Private bank91,345 — 15 (14,881)— 76,479 
Balance sheet dependent24,728 — — 4,341 — 29,069 
Premium wine12,319 — — (1,914)— 10,405 
Other13,635 (2)531 (14,898)1,600 866 
SBA loans3,858 — — (1,378)— 2,480 
Total allowance for credit losses$589,828 $(28,449)$4,354 $(54,106)$1,331 $512,958 
Three months ended September 30, 2019Beginning Balance June 30, 2019Charge-offsRecoveriesProvision for (Reduction) Credit LossesForeign Currency Translation AdjustmentsEnding Balance September 30, 2019
(Dollars in thousands)
Global fund banking$101,253 $— $1,200 $1,485 $(22)$103,916 
Investor dependent:
Early stage30,969 (7,524)1,760 5,783 (85)30,903 
Mid stage28,264 (16,581)385 5,778 (85)17,761 
Later stage37,940 (11,449)276 17,513 (259)44,021 
Total investor dependent97,173 (35,554)2,421 29,074 (429)92,685 
Cash flow dependent:
Sponsor led buyout32,131 — — 9,663 (143)41,651 
Other24,551 — 250 (3,199)47 21,649 
Total cash flow dependent56,682 — 250 6,464 (96)63,300 
Private Bank20,397 — 15 1,307 (19)21,700 
Balance sheet dependent17,256 — — (2,496)37 14,797 
Premium wine4,227 — — 27 — 4,254 
Other4,900 (1,266)2 124 (2)3,758 
Total allowance for credit losses$301,888 $(36,820)$3,888 $35,985 $(531)$304,410 
Nine months ended September 30, 2020Beginning Balance December 31, 2019Impact of adopting ASC 326Charge-offsRecoveriesProvision for (Reduction) Credit LossesForeign Currency Translation AdjustmentsEnding Balance September 30, 2020
(Dollars in thousands)
Global fund banking$107,285 $(69,888)$— $— $1,772 $(180)$38,989 
Investor dependent:
Early stage26,245 39,911 (26,897)6,474 57,494 (668)102,559 
Mid stage15,936 6,963 (20,147)5,303 54,584 (221)62,418 
Later stage40,189 24,750 (20,189)600 52,880 (519)97,711 
Total investor dependent82,370 71,624 (67,233)12,377 164,958 (1,408)262,688 
Cash flow dependent:
Sponsor led buyout42,939 3,151 (2,754)2,845 5,613 (133)51,661 
Other25,159 (3,056)(3,385)1 21,727 (125)40,321 
Total cash flow dependent68,098 95 (6,139)2,846 27,340 (258)91,982 
Private bank21,551 12,615 (1,616)15 44,194 (280)76,479 
Balance sheet dependent12,722 (1,364)(4,900)— 22,685 (74)29,069 
Premium wine5,296 3,650 (192)— 1,691 (40)10,405 
Other7,602 8,732 (320)944 (18,426)2,334 866 
SBA loans— — — — 2,480 — 2,480 
Total allowance for credit losses$304,924 $25,464 $(80,400)$16,182 $246,694 $94 $512,958 
Nine months ended September 30, 2019Beginning Balance December 31, 2018Charge-offsRecoveriesProvision for (Reduction) Credit LossesForeign Currency Translation AdjustmentsEnding Balance September 30, 2019
(Dollars in thousands)
Global fund banking$93,781 $(2,047)$1,200 $11,304 $(322)$103,916 
Investor dependent:
Early stage25,885 (16,819)5,685 16,547 (395)30,903 
Mid stage20,999 (36,492)1,288 31,443 523 17,761 
Later stage25,217 (11,449)2,053 28,616 (416)44,021 
Total investor dependent72,101 (64,760)9,026 76,606 (288)92,685 
Cash flow dependent:
Sponsor led buyout44,274 (2,402)— (253)32 41,651 
Other21,754 (716)4,647 (4,083)47 21,649 
Total cash flow dependent66,028 (3,118)4,647 (4,336)79 63,300 
Private Bank20,583 (1,019)240 1,999 (103)21,700 
Balance sheet dependent21,707 — — (7,135)225 14,797 
Premium wine3,646 — — 611 (3)4,254 
Other3,057 (1,311)20 1,905 87 3,758 
Total allowance for credit losses$280,903 $(72,255)$15,133 $80,954 $(325)$304,410 
The following table summarizes the aging of our loans broken out by risk-based segment as of September 30, 2020 and December 31, 2019:
(Dollars in thousands)30 - 59
  Days Past  
Due		60 - 89
  Days Past  
Due		Equal to or Greater
Than 90
  Days Past  
Due		  Total Past  
Due		Current  Total   Loans Past Due
90 Days or
More Still
Accruing
Interest
September 30, 2020:
Global fund banking$6,285 $— $14 $6,299 $19,578,219 $19,584,518 $— 
Investor dependent:
Early stage605 323 367 1,295 1,469,646 1,470,941 — 
Mid stage250 145 211 606 1,626,188 1,626,794 — 
Later stage51 — — 51 2,013,883 2,013,934 — 
Total investor dependent906 468 578 1,952 5,109,717 5,111,669 — 
Cash flow dependent:
Sponsor led buyout— — — — 2,062,243 2,062,243 — 
Other742 3 — 745 2,599,412 2,600,157 — 
Total cash flow dependent742 3 — 745 4,661,655 4,662,400 — 
Private bank4 4 — 8 4,424,891 4,424,899 — 
Balance sheet dependent2,851 7 — 2,858 1,695,362 1,698,220 — 
Premium wine3,117 4,355 — 7,472 1,074,491 1,081,963 — 
Other23 — 155 178 48,028 48,206 — 
SBA loans— — — — 1,802,016 1,802,016 — 
Total loans (1)$13,928 $4,837 $747 $19,512 $38,394,379 $38,413,891 $— 
December 31, 2019:
Global fund banking$97,739 $383 $3,150 $101,272 $17,611,525 $17,712,797 $3,150 
Investor dependent:
Early stage1,307 22,062 723 24,092 1,629,333 1,653,425 — 
Mid stage10,025 6,999 — 17,024 1,049,759 1,066,783 — 
Later stage8,113 500 10,569 19,182 1,679,494 1,698,676 — 
Total investor dependent19,445 29,561 11,292 60,298 4,358,586 4,418,884 — 
Cash flow dependent
Sponsor led buyout— — — — 2,203,020 2,203,020 — 
Other2,426 3,061 2 5,489 2,247,358 2,252,847 — 
Total cash flow dependent2,426 3,061 2 5,489 4,450,378 4,455,867 — 
Private bank6,582 2,049 1,544 10,175 3,479,044 3,489,219 365 
Balance sheet dependent2,731 — — 2,731 1,294,573 1,297,304 — 
Premium wine8,435 3,170 — 11,605 1,051,907 1,063,512 — 
Other17 — — 17 890,104 890,121 — 
Total loans (1)$137,375 $38,224 $15,988 $191,587 $33,136,117 $33,327,704 $3,515 
(1)As of September 30, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed using the gross basis.
Nonaccrual Loans
The following tables summarize our nonaccrual loan activity by risk-based segment for the three and nine months ended September 30, 2020 and 2019:
Three months ended September 30, 2020Beginning Balance June 30, 2020AdditionsPaydowns and Other ReductionsCharge-offsEnding Balance September 30, 2020
(Dollars in thousands)
Global fund banking$9 $6 $(2)$— $13 
Investor dependent:
Early stage24,422 6,269 (2,790)(8,169)19,732 
Mid stage8,119 10,290 (292)(6,490)11,627 
Later stage10,498 36,779 (3,500)(5,202)38,575 
Total investor dependent43,039 53,338 (6,582)(19,861)69,934 
Cash flow dependent:
Sponsor led buyout21,658 172 (238)— 21,592 
Other5,317 12,356 (11,388)— 6,285 
Total cash flow dependent26,975 12,528 (11,626)— 27,877 
Private bank6,517 3,348 (4,433)— 5,432 
Balance sheet dependent11,842 675 (11,841)— 676 
Premium wine1,681 — (6)— 1,675 
Other61 105 (62)— 104 
SBA loans4,202 — (4,202)— — 
Total nonaccrual loans$94,326 $70,000 $(38,754)$(19,861)$105,711 

Three months ended September 30, 2019Beginning Balance June 30, 2019AdditionsPaydowns and Other ReductionsCharge-offsEnding Balance September 30, 2019
(Dollars in thousands)
Global fund banking$— $— $— $— $— 
Investor dependent:
Early stage10,290 12,409 (2,172)(1,569)18,958 
Mid stage28,699 6 (8,151)(15,323)5,231 
Later stage38,346 2,216 (6,462)(6,837)27,263 
Total investor dependent77,335 14,631 (16,785)(23,729)51,452 
Cash flow dependent:
Sponsor led buyout8,365 37,294 (640)— 45,019 
Other79 13 — — 92 
Total cash flow dependent8,444 37,307 (640)— 45,111 
Private bank5,644 1,531 (86)— 7,089 
Balance sheet dependent4,974 — (4,974)— — 
Premium wine244 174 (25)— 393 
Other— — — — — 
Total nonaccrual loans (1)$96,641 $53,643 $(22,510)$(23,729)$104,045 
Nine months ended September 30, 2020Beginning Balance December 31, 2019AdditionsPaydowns and Other ReductionsCharge-offsEnding Balance September 30, 2020
(Dollars in thousands)
Global fund banking$— $15 $(2)$— $13 
Investor dependent:
Early stage11,093 28,218 (8,695)(10,884)19,732 
Mid stage17,330 22,875 (1,079)(27,499)11,627 
Later stage6,296 48,962 (8,276)(8,407)38,575 
Total investor dependent34,719 100,055 (18,050)(46,790)69,934 
Cash flow dependent:
Sponsor led buyout44,585 21,830 (42,199)(2,624)21,592 
Other17,681 20,936 (32,314)(18)6,285 
Total cash flow dependent62,266 42,766 (74,513)(2,642)27,877 
Private bank5,480 5,982 (5,449)(581)5,432 
Balance sheet dependent— 17,417 (16,741)— 676 
Premium wine204 1,686 (23)(192)1,675 
Other— 339 (235)— 104 
SBA loans— 4,202 (4,202)— — 
Total nonaccrual loans (1)$102,669 $172,462 $(119,215)$(50,205)$105,711 

Nine months ended September 30, 2019Beginning Balance December 31, 2018AdditionsPaydowns and Other ReductionsCharge-offsEnding Balance September 30, 2019
(Dollars in thousands)
Global fund banking$3,700 $2,247 $(3,900)$(2,047)$— 
Investor dependent:
Early stage7,616 25,221 (10,615)(3,264)18,958 
Mid stage4,751 42,497 (9,541)(32,476)5,231 
Later stage11,385 32,786 (10,071)(6,837)27,263 
Total investor dependent23,752 100,504 (30,227)(42,577)51,452 
Cash flow dependent:
Sponsor led buyout39,534 37,294 (29,407)(2,402)45,019 
Other17,156 92 (16,690)(466)92 
Total cash flow dependent56,690 37,386 (46,097)(2,868)45,111 
Private bank3,919 3,411 (174)(67)7,089 
Balance sheet dependent5,004 238 (5,242)— — 
Premium wine285 174 (66)— 393 
Other792 — (792)— — 
Total nonaccrual loans (1)$94,142 $143,960 $(86,498)$(47,559)$104,045 
(1)For the three and nine months ended September 30, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed using the gross basis.
The following table summarizes our nonaccrual loans with no allowance for credit loss at September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
(Dollars in thousands)Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossNonaccrual Loans Nonaccrual Loans with no Allowance for Credit Loss
Global fund banking$13 $8 $— $— 
Investor dependent:
Early stage19,732 10 11,093 460 
Mid stage11,627 — 17,330 274 
Later stage38,575 — 6,296 — 
Total investor dependent69,934 10 34,719 734 
Cash flow dependent:
Sponsor led buyout21,592 — 44,585 — 
Other6,285 705 17,681 2,782 
Total cash flow dependent27,877 705 62,266 2,782 
Private bank5,432 4,912 5,480 3,714 
Balance sheet dependent676 — — — 
Premium wine1,675 998 204 — 
Other104 104 — — 
SBA loans— — — — 
Total nonaccrual loans (1)$105,711 $6,737 $102,669 $7,230 
(1)As of September 30, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed using the gross basis.

Troubled Debt Restructurings
As of September 30, 2020, we had 16 TDRs with a total carrying value of $50.5 million where concessions have been granted to borrowers experiencing financial difficulties, in an attempt to maximize collection. There were no unfunded commitments available for funding to the clients associated with these TDRs as of September 30, 2020.
The following table summarizes our loans modified in TDRs, broken out by risk-based segment, at September 30, 2020 and December 31, 2019:
(Dollars in thousands)September 30, 2020December 31, 2019
Loans modified in TDRs:
Global fund banking$— $— 
Investor dependent:
Early stage7,771 9,471 
Mid stage3,781 5,189 
Later stage3,297 23,318 
Total investor dependent14,849 37,978 
Cash flow dependent:
Sponsor led buyout30,799 55,443 
Other855 — 
Total cash flow dependent31,654 55,443 
Private bank— 2,104 
Balance sheet dependent675 — 
Premium wine3,341 13,457 
Other— — 
SBA loans— — 
Total loans modified in TDRs (1)$50,519 $108,982 
(1)As of September 30, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed using the gross basis.
The following table summarizes the recorded investment in loans modified in TDRs, broken out by risk-based segment, for modifications made during the three and nine months ended September 30, 2020 and 2019:
 Three months ended September 30,Nine months ended September 30,
(Dollars in thousands)2020201920202019
Loans modified in TDRs during the period:
Global fund banking$— $— $— $— 
Investor dependent:
Early stage4,043 2,205 4,193 2,205 
Mid stage— — 209 3,480 
Later stage— 6,361 3,297 17,324 
Total investor dependent4,043 8,566 7,699 23,009 
Cash flow dependent:
Sponsor led buyout21,611 — 21,611 48,604 
Other— — 855 — 
Total cash flow dependent21,611 — 22,466 48,604 
Private bank— — — 1,826 
Balance sheet dependent675 — 675 — 
Premium wine— — 998 — 
Other— — — — 
SBA loans— — — — 
Total loans modified in TDRs during the period (1) (2)$26,329 $8,566 $31,838 $73,439 
 
(1)For the three and nine months ended September 30, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed using the gross basis.
(2)There were $13.6 million and $31.1 million of partial charge-offs for the three and nine months ended September 30, 2020, respectively, and $3.7 million and $9.2 million of partial charge-offs for the three and nine months ended September 30, 2019.

During the three months ended September 30, 2020, new TDRs of $25.6 million were modified through payment deferrals granted to our clients and $0.7 million were modified through forgiveness of principal. During the nine months ended September 30, 2020, new TDRs of $30.9 million were modified through payment deferrals granted to our clients and $0.9 million were modified through forgiveness of principal. During the three and nine months ended September 30, 2019, $6.4 million and $69.4 million, respectively, were modified through payment deferrals granted to our clients. During the three and nine months ended September 30, 2019, $2.2 million and $4.0 million, respectively, were modified through partial forgiveness of principal.
The following table summarizes the recorded investment in loans modified in TDRs within the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2020 and 2019:
 Three months ended September 30,Nine months ended September 30,
(Dollars in thousands)2020201920202019
TDRs modified within the previous 12 months that defaulted during the period:
Global fund banking$— $— $— $— 
Investor dependent:
Early stage— — — — 
Mid stage— — — — 
Later stage— 10,963 — 10,963 
Total investor dependent— 10,963 — 10,963 
Cash flow dependent:
Sponsor led buyout— 37,294 — 37,294 
Other— — — — 
Total cash flow dependent— 37,294 — 37,294 
Private bank— — — — 
Balance sheet dependent— — — — 
Premium wine998 — 998 — 
Other— — — — 
SBA loans
— — — — 
Total TDRs modified within the previous 12 months that defaulted in the period (1)
$998 $48,257 $998 $48,257 
(1)For the three and nine months ended September 30, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed using the gross basis.

Charge-offs and defaults on previously restructured loans are evaluated to determine the impact to the allowance for credit losses for loans, if any. The evaluation of these defaults may impact the assumptions used in calculating the reserve on other TDRs and nonaccrual loans as well as management’s overall outlook of macroeconomic factors that affect the reserve on the loan portfolio as a whole. After evaluating the charge-offs and defaults experienced on our TDRs we determined that no change to our reserving methodology for TDRs was necessary to determine the allowance for credit losses for loans as of September 30, 2020.
Allowance for Credit Losses: Unfunded Credit Commitments
We maintain a separate allowance for credit losses for unfunded credit commitments that is determined using a methodology that is inherently similar to the methodology used for calculating the allowance for credit losses for loans. At September 30, 2020, our ACL estimates utilized the improved Moody's economic forecasts from September 2020 as mentioned above.
The following table summarizes the activity relating to our allowance for credit losses for unfunded credit commitments for the three and nine months ended September 30, 2020 and 2019:
 Three months ended September 30,Nine months ended September 30,
(Dollars in thousands)2020201920202019
Allowance for credit losses: unfunded credit commitments, beginning balance
$99,294 $62,664 $67,656 $55,183 
Impact of adopting ASC 326— — 22,826 — 
Provision for credit losses2,019 551 11,132 8,079 
Foreign currency translation adjustments202 (107)(99)(154)
Allowance for credit losses: unfunded credit commitments, ending balance (1)
$101,515 $63,108 $101,515 $63,108 
(1)The “allowance for credit losses: unfunded credit commitments” is included as a component of “other liabilities” on our unaudited interim consolidated balance sheets. See Note 15 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional disclosures related to our commitments to extend credit.