Noninterest Income (Tables)

9 Months Ended

Sep. 30, 2020

Other Income and Expenses [Abstract]

Summary of Noninterest Income

Included below is a summary of noninterest income 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)	2020		2019		2020		2019
Noninterest income:
Gains on investment securities, net	$	189,837	$	29,849	$	270,760	$	106,575
Gains on equity warrant assets, net	53,766		37,561		93,667		107,213
Client investment fees	31,914		46,679		107,192		136,905
Foreign exchange fees	43,881		40,309		127,642		116,863
Credit card fees	22,756		30,158		72,348		86,431
Deposit service charges	22,015		22,482		67,115		65,496
Lending related fees	13,562		11,707		37,851		36,857
Letters of credit and standby letters of credit fees	12,192		10,842		35,155		31,205
Investment banking revenue	92,181		38,516		280,551		137,005
Commissions	16,257		12,275		49,197		40,812
Other	49,222		13,631		76,887		42,773
Total noninterest income	$	547,583	$	294,009	$	1,218,365	$	908,135

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

A summary of gains and losses on investment securities for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Gains on non-marketable and other equity securities, net	$	189,837	$	29,849	$	209,595	$	110,480
Gains (losses) on sales of available-for-sale securities, net	—		—		61,165		(3,905)
Total gains on investment securities, net	$	189,837	$	29,849	$	270,760	$	106,575

Components of Gains on Equity Warrant Assets

A summary of net gains on equity warrant assets for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Equity warrant assets:
Gains on exercises, net	$	23,940	$	30,047	$	59,370	$	90,357
Terminations	(361)		(481)		(1,332)		(2,931)
Changes in fair value, net	30,187		7,995		35,629		19,787
Total net gains on equity warrant assets	$	53,766	$	37,561	$	93,667	$	107,213

Components of Asset Management Fees

A summary of client investment fees by instrument type for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Client investment fees by type:
Sweep money market fees	$	18,155	$	26,202	$	60,617	$	79,698
Asset management fees (1)	12,172		7,256		32,905		20,883
Repurchase agreement fees	1,587		13,221		13,670		36,324
Total client investment fees (2)	$	31,914	$	46,679	$	107,192	$	136,905

(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 that 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 and nine months ended September 30, 2020 and 2019 is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Foreign exchange fees by instrument type:
Spot contract commissions	$	38,794	$	36,836	$	112,821	$	106,561
Forward contract commissions	4,613		3,371		14,004		10,144
Option premium fees	474		102		817		158
Total foreign exchange fees	$	43,881	$	40,309	$	127,642	$	116,863

Components of Credit Card Fees

A summary of credit card fees by instrument type for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Credit card fees by instrument type:
Card interchange fees, net	$	18,168	$	24,560	$	55,257	$	68,808
Merchant service fees	3,670		3,943		13,727		12,763
Card service fees	918		1,655		3,364		4,860
Total credit card fees	$	22,756	$	30,158	$	72,348	$	86,431

Components of Lending Related Fees

A summary of lending related fees by instrument type for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Lending related fees by instrument type:
Unused commitment fees	$	9,872	$	8,339	$	26,602	$	25,060
Other	3,690		3,368		11,249		11,797
Total lending related fees	$	13,562	$	11,707	$	37,851	$	36,857

Schedule of Investment Banking Revenue

A summary of investment banking revenue by instrument type for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Investment banking revenue:
Underwriting fees	$	85,009	$	31,016	$	247,384	$	109,371
Advisory fees	1,761		5,200		26,170		22,789
Private placements and other	5,411		2,300		6,997		4,845
Total investment banking revenue	$	92,181	$	38,516	$	280,551	$	137,005

Summary of Other Noninterest Income

A summary of other noninterest income by instrument type for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Other noninterest income by instrument type:
Fund management fees	$	9,669	$	8,493	$	26,422	$	24,292
Net (losses) gains on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1)	(547)		(78)		(592)		173
Gains from conversion of convertible debt options	30,018		—		30,018		—
Other service revenue	10,082		5,216		21,039		18,308
Total other noninterest income	$	49,222	$	13,631	$	76,887	$	42,773

(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 and nine months ended September 30, 2020 and 2019:

Three months ended September 30, 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	$	31,132	$	782	$	—	$	—	$	—	$	31,914
Spot contract commissions	38,546		108		—		—		140		38,794
Card interchange fees, gross	29,255		5		—		—		287		29,547
Merchant service fees	3,670		—		—		—		—		3,670
Deposit service charges	21,914		20		—		—		81		22,015
Investment banking revenue	—		—		—		92,181		—		92,181
Commissions	—		—		—		16,257		—		16,257
Fund management fees	—		—		8,239		1,430		—		9,669
Performance fees	—		—		1,613		—		—		1,613
Correspondent bank rebates	1,377		—		—		—		—		1,377
Total revenue from contracts with customers	$	125,894	$	915	$	9,852	$	109,868	$	508	$	247,037
Revenues outside the scope of ASC 606 (1)	21,700		1		50,528		3,783		224,534		300,546
Total noninterest income	$	147,594	$	916	$	60,380	$	113,651	$	225,042	$	547,583

(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 September 30, 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	$	46,171	$	508	$	—	$	—	$	—	$	46,679
Spot contract commissions	36,644		89		—		—		103		36,836
Card interchange fees, gross	34,867		—		—		—		181		35,048
Merchant service fees	3,943		—		—		—		—		3,943
Deposit service charges	22,263		36		—		—		183		22,482
Investment banking revenue	—		—		—		38,516		—		38,516
Commissions	—		—		—		12,275		—		12,275
Fund management fees	—		—		7,063		1,430		—		8,493
Correspondent bank rebates	1,633		—		—		—		—		1,633
Total revenue from contracts with customers	$	145,521	$	633	$	7,063	$	52,221	$	467	$	205,905
Revenues outside the scope of ASC 606 (1)	15,508		1		27,892		726		43,977		88,104
Total noninterest income	$	161,029	$	634	$	34,955	$	52,947	$	44,444	$	294,009

(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."

Nine months ended September 30, 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	$	105,176	$	2,016	$	—	$	—	$	—	$	107,192
Spot contract commissions	112,086		367		—		—		368		112,821
Card interchange fees, gross	90,909		17		—		—		1,144		92,070
Merchant service fees	13,727		—		—		—		—		13,727
Deposit service charges	66,612		60		—		—		443		67,115
Investment banking revenue	—		—		—		280,551		—		280,551
Commissions	—		—		—		49,197		—		49,197
Fund management fees	—		—		22,132		4,290		—		26,422
Performance fees	—		—		3,601		—		—		3,601
Correspondent bank rebates	4,151		—		—		—		—		4,151
Total revenue from contracts with customers	$	392,661	$	2,460	$	25,733	$	334,038	$	1,955	$	756,847
Revenues outside the scope of ASC 606 (1)	55,241		26		61,015		6,107		339,129		461,518
Total noninterest income	$	447,902	$	2,486	$	86,748	$	340,145	$	341,084	$	1,218,365

(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."

Nine months ended September 30, 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	$	135,551	$	1,354	$	—	$	—	$	—	$	136,905
Spot contract commissions	105,877		376		—		—		308		106,561
Card interchange fees, gross	115,468		—		—		—		518		115,986
Merchant service fees	12,764		—		—		—		—		12,764
Deposit service charges	64,806		104		—		—		586		65,496
Investment banking revenue	—		—		—		137,005		—		137,005
Commissions	—		—		—		40,812		—		40,812
Fund management fees	—		—		20,050		4,242		—		24,292
Correspondent bank rebates	4,712		—		—		—		—		4,712
Total revenue from contracts with customers	$	439,178	$	1,834	$	20,050	$	182,059	$	1,412	$	644,533
Revenues outside the scope of ASC 606 (1)	32,314		(5)		79,810		6,005		145,478		263,602
Total noninterest income	$	471,492	$	1,829	$	99,860	$	188,064	$	146,890	$	908,135

(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."