Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2020

Our segment information for the three and nine months ended September 30, 2020 and 2019 is as follows:


(Dollars in thousands)	Global Commercial Bank (1)		SVB Private Bank		SVB Capital (1)		SVB Leerink (1)		Other Items (2)		Total
Three months ended September 30, 2020
Net interest income (loss)	$	512,963	$	19,145	$	2	$	175	$	(4,545)	$	527,740
Reduction (provision for) credit losses	37,847		14,881		—		—		(710)		52,018
Noninterest income	147,594		916		60,380		113,651		225,042		547,583
Noninterest expense (3)	(258,035)		(12,293)		(11,198)		(77,567)		(131,928)		(491,021)
Income before income tax expense (4)	$	440,369	$	22,649	$	49,184	$	36,259	$	87,859	$	636,320
Total average loans, amortized cost	$	30,763,715	$	4,263,324	$	—	$	—	$	2,291,561	$	37,318,600
Total average assets (5) (6)	77,802,730		4,297,011		413,882		605,263		5,229,480		88,348,366
Total average deposits	74,825,725		2,163,903		—		—		690,388		77,680,016
Three months ended September 30, 2019
Net interest income	$	455,161	$	12,772	$	9	$	277	$	52,425	$	520,644
Provision for credit losses	(34,075)		(1,910)		—		—		(551)		(36,536)
Noninterest income	161,029		634		34,955		52,947		44,444		294,009
Noninterest expense (3)	(213,786)		(11,638)		(8,129)		(55,200)		(102,571)		(391,324)
Income (loss) before income tax expense (4)	$	368,329	$	(142)	$	26,835	$	(1,976)	$	(6,253)	$	386,793
Total average loans, amortized cost	$	25,839,647	$	3,400,889	$	—	$	—	$	581,890	$	29,822,426
Total average assets (5) (6) (8)	58,384,473		3,431,313		396,031		428,848		2,687,083		65,327,748
Total average deposits	55,250,154		1,497,303		—		—		487,512		57,234,969
Nine months ended September 30, 2020
Net interest income	$	1,461,768	$	52,952	$	28	$	373	$	49,683	$	1,564,804
Provision for credit losses	(200,020)		(44,194)		—		—		(13,729)		(257,943)
Noninterest income	447,902		2,486		86,748		340,145		341,084		1,218,365
Noninterest expense (3)	(724,233)		(32,547)		(28,040)		(248,254)		(337,168)		(1,370,242)
Income (loss) before income tax expense (4)	$	985,417	$	(21,303)	$	58,736	$	92,264	$	39,870	$	1,154,984
Total average loans, net of unearned income	$	30,126,870	$	4,053,018	$	—	$	—	$	1,656,039	$	35,835,927
Total average assets (5) (6)	69,212,733		4,087,786		430,391		514,836		5,514,904		79,760,650
Total average deposits	66,408,359		2,069,196		—		—		688,509		69,166,064
Nine months ended September 30, 2019
Net interest income	$	1,360,997	$	37,200	$	20	$	961	$	163,755	$	1,562,933
Provision for credit losses	(79,175)		(1,779)		—		—		(8,079)		(89,033)
Noninterest income	471,492		1,829		99,860		188,064		146,890		908,135
Noninterest expense (3)	(617,933)		(30,015)		(21,794)		(177,675)		(293,093)		(1,140,510)
Income before income tax expense (4)	$	1,135,381	$	7,235	$	78,086	$	11,350	$	9,473	$	1,241,525
Total average loans, net of unearned income	$	25,457,997	$	3,235,943	$	—	$	—	$	517,020	$	29,210,960
Total average assets (5) (6)	54,196,976		3,264,071		382,707		380,290		2,990,088		61,214,132
Total average deposits	51,352,644		1,461,170		—		—		517,530		53,331,344

(1)Global Commercial Bank’s, SVB Capital’s and SVB Leerink'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 or losses on equity warrant assets, gains or losses on the sale of AFS securities and gains or losses on 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 $6.4 million and $5.1 million for the three months ended September 30, 2020 and 2019, respectively, and $17.7 million and $14.8 million for the nine months ended September 30, 2020 and 2019.

(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.

(6)Included in the total average assets for SVB Leerink is goodwill of $137.8 million for the three and nine months ended September 30, 2020 and 2019.