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Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments
We 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 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 U.S. Small Business Association ("SBA") under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") and originated loans to qualified small businesses. Disbursement of PPP funds under the CARES Act originally expired on August 8, 2020, however, on December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Economic Aid Act") was enacted, which allowed borrowers to apply for PPP loans up to March 31, 2021, as well as allowing for certain PPP borrowers to apply for second draw loans. The disbursement phase of the PPP was further extended to May 31, 2021 pursuant to the PPP Extension Act of 2021.
The composition of loans at amortized cost basis broken out by risk-based segment at March 31, 2021 and December 31, 2020 is presented in the following table:
(Dollars in thousands)March 31, 2021December 31, 2020
Global fund banking$27,306,926 $25,543,198 
Investor dependent:
Early stage1,523,208 1,485,866 
Mid stage1,588,185 1,564,870 
Later stage2,055,676 1,921,082 
Total investor dependent5,167,069 4,971,818 
Cash flow dependent:
Sponsor led buyout1,984,567 1,989,173 
Other2,959,609 2,945,360 
Total cash flow dependent4,944,176 4,934,533 
Private bank (4)5,063,827 4,901,056 
Balance sheet dependent2,501,524 2,191,023 
Premium wine (4)1,040,223 1,052,643 
Other (4)45,688 27,687 
SBA loans1,605,733 1,559,530 
Total loans (1) (2) (3)$47,675,166 $45,181,488 
Allowance for credit losses(391,751)(447,765)
Net loans$47,283,415 $44,733,723 
(1)    Total loans at amortized cost is net of unearned income of $248 million and $226 million at March 31, 2021 and December 31, 2020, respectively.
(2)     Included within our total loan portfolio are credit card loans of $461 million and $400 million at March 31, 2021 and December 31, 2020, respectively.
(3)     Included within our total loan portfolio are construction loans of $108 million and $118 million at March 31, 2021 and December 31, 2020, respectively.
(4)     Of our total loans, the table below includes those secured by real estate at amortized cost at March 31, 2021 and December 31, 2020 and were comprised of the following:
(Dollars in thousands)March 31, 2021December 31, 2020
Real estate secured loans:
Private bank:
Loans for personal residence$3,538,077 $3,392,237 
Loans to eligible employees458,736 481,098 
Home equity lines of credit45,033 42,449 
Other145,995 142,895 
Total private bank loans secured by real estate$4,187,841 $4,058,679 
Premium wine824,463 824,008 
Other50,584 56,882 
Total real estate secured loans$5,062,888 $4,939,569 
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 with the internal rating of "Nonperforming." 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 March 31, 2021 and December 31, 2020:
(Dollars in thousands)PassCriticizedNonperforming (Nonaccrual)Total
March 31, 2021:
Global fund banking$27,292,491 $14,417 $18 $27,306,926 
Investor dependent:
Early stage1,303,581 211,861 7,766 1,523,208 
Mid stage1,492,157 96,028 — 1,588,185 
Later stage1,922,215 106,058 27,403 2,055,676 
Total investor dependent4,717,953 413,947 35,169 5,167,069 
Cash flow dependent:
Sponsor led buyout1,844,415 100,304 39,848 1,984,567 
Other2,680,114 273,867 5,628 2,959,609 
Total cash flow dependent4,524,529 374,171 45,476 4,944,176 
Private bank5,024,735 30,647 8,445 5,063,827 
Balance sheet dependent2,373,152 128,372 — 2,501,524 
Premium wine903,583 135,501 1,139 1,040,223 
Other45,653 35 — 45,688 
SBA loans1,466,605 139,128 — 1,605,733 
Total loans$46,348,701 $1,236,218 $90,247 $47,675,166 
December 31, 2020:
Global fund banking$25,537,354 $5,833 $11 $25,543,198 
Investor dependent
Early stage1,288,897 178,629 18,340 1,485,866 
Mid stage1,420,788 140,026 4,056 1,564,870 
Later stage1,744,662 147,763 28,657 1,921,082 
Total investor dependent4,454,347 466,418 51,053 4,971,818 
Cash flow dependent
Sponsor led buyout1,795,972 153,205 39,996 1,989,173 
Other2,677,371 261,985 6,004 2,945,360 
Total cash flow dependent4,473,343 415,190 46,000 4,934,533 
Private bank4,862,176 32,728 6,152 4,901,056 
Balance sheet dependent2,104,645 86,378 — 2,191,023 
Premium wine910,397 141,248 998 1,052,643 
Other27,594 63 30 27,687 
SBA loans1,455,990 103,540 — 1,559,530 
Total loans$43,825,846 $1,251,398 $104,244 $45,181,488 
The following tables summarize the credit quality indicators, broken out by risk-based segment and vintage year, as of March 31, 2021 and December 31, 2020:
Term Loans by Origination Year
March 31, 2021
(Dollars in thousands)		20212020201920182017PriorRevolving LoansRevolving Loans Converted to Term LoansUnallocated (1)Total
Global fund banking:
Risk rating:
Pass $267,498 $263,243 $44,632 $59,520 $21,416 $7,773 $26,627,712 $697 $— $27,292,491 
Criticized3 — — — — — 10,347 4,067 — 14,417 
Nonperforming— — 8 — — — 10 — — 18 
Total global fund banking$267,501 $263,243 $44,640 $59,520 $21,416 $7,773 $26,638,069 $4,764 $— $27,306,926 
Investor dependent:
Early stage:
Risk rating:
Pass $197,867 $584,281 $296,776 $95,495 $16,114 $1,122 $111,366 $560 $— $1,303,581 
Criticized5,120 82,312 68,639 23,896 6,174 1,792 23,928 — — 211,861 
Nonperforming211 454 3,037 3,124 — 940 — — 7,766 
Total early stage$203,198 $667,047 $368,452 $122,515 $22,288 $2,914 $136,234 $560 $— $1,523,208 
Mid stage:
Risk rating:
Pass $253,799 $708,740 $253,486 $129,298 $19,909 $2,754 $121,676 $2,495 $— $1,492,157 
Criticized4,510 43,314 18,015 10,773 3,745 4,998 10,673 — — 96,028 
Nonperforming— — — — — — — — — — 
Total mid stage$258,309 $752,054 $271,501 $140,071 $23,654 $7,752 $132,349 $2,495 $— $1,588,185 
Later stage:
Risk rating:
Pass $262,703 $942,741 $338,516 $165,935 $14,016 $5,593 $187,725 $4,986 $— $1,922,215 
Criticized— 35,439 27,753 8,571 — 892 33,403 — — 106,058 
Nonperforming— 15,997 1,676 3,280 — — 6,450 — — 27,403 
Total later stage$262,703 $994,177 $367,945 $177,786 $14,016 $6,485 $227,578 $4,986 $— $2,055,676 
Total investor dependent$724,210 $2,413,278 $1,007,898 $440,372 $59,958 $17,151 $496,161 $8,041 $— $5,167,069 
Cash flow dependent:
Sponsor led buyout:
Risk rating:
Pass $310,562 $643,432 $406,962 $242,303 $147,618 $36,269 $57,269 $— $— $1,844,415 
Criticized— 551 30,534 39,028 10,515 13,129 6,547 — — 100,304 
Nonperforming— 32 11,838 15,998 7,158 — 4,822 — — 39,848 
Total sponsor led buyout$310,562 $644,015 $449,334 $297,329 $165,291 $49,398 $68,638 $— $— $1,984,567 
Other
Risk rating:
Pass $454,225 $791,748 $343,877 $158,992 $111,051 $1,946 $818,275 $— $— $2,680,114 
Criticized1 16,065 60,474 67,074 3,957 — 126,296 — — 273,867 
Nonperforming— — — 4,418 — — 1,210 — — 5,628 
Total other$454,226 $807,813 $404,351 $230,484 $115,008 $1,946 $945,781 $— $— $2,959,609 
Total cash flow dependent$764,788 $1,451,828 $853,685 $527,813 $280,299 $51,344 $1,014,419 $— $— $4,944,176 
Private bank:
Risk rating:
Pass $412,282 $1,821,765 $1,064,886 $364,246 $319,602 $646,021 $395,302 $631 $— $5,024,735 
Criticized— 3,179 8,398 3,513 3,211 9,442 2,904 — — 30,647 
Nonperforming— — — 6,079 — 1,657 709 — — 8,445 
Total private bank$412,282 $1,824,944 $1,073,284 $373,838 $322,813 $657,120 $398,915 $631 $— $5,063,827 
Balance sheet dependent:
Risk rating:
Pass $263,600 $832,914 $155,424 $181,241 $33,922 $— $904,547 $1,504 $— $2,373,152 
Criticized69 58,519 42,391 — — — 27,393 — — 128,372 
Nonperforming— — — — — — — — — — 
Total balance sheet dependent$263,669 $891,433 $197,815 $181,241 $33,922 $— $931,940 $1,504 $— $2,501,524 
Premium wine:
Risk rating:
Pass $20,393 $129,671 $193,793 $87,586 $77,877 $225,080 $133,185 $35,998 $— $903,583 
Criticized1,634 13,288 22,856 16,069 10,207 47,518 23,929 — — 135,501 
Nonperforming— 42 — — — 998 99 — — 1,139 
Total Premium wine$22,027 $143,001 $216,649 $103,655 $88,084 $273,596 $157,213 $35,998 $— $1,040,223 
Other:
Risk rating:
Pass $21 $10,792 $19,179 $16,642 $1,478 $1 $13,031 $— $(15,491)$45,653 
Criticized— — — — — — 35 — — 35 
Nonperforming— — — — — — — — — — 
Total other$21 $10,792 $19,179 $16,642 $1,478 $1 $13,066 $— $(15,491)$45,688 
SBA loans:
Risk rating:
Pass $385,899 $1,080,706 $— $— $— $— $— $— $— $1,466,605 
Criticized49,353 89,775 — — — — — — — 139,128 
Nonperforming— — — — — — — — — — 
Total SBA loans$435,252 $1,170,481 $— $— $— $— $— $— $— $1,605,733 
Total loans$2,889,750 $8,169,000 $3,413,150 $1,703,081 $807,970 $1,006,985 $29,649,783 $50,938 $(15,491)$47,675,166 
(1)    These amounts consist of fees and clearing items that have not yet been allocated at the loan level.
Term Loans by Origination Year
December 31, 2020
(Dollars in thousands)		20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Global fund banking:
Risk rating:
Pass $439,494 $48,297 $68,491 $22,878 $2,389 $5,999 $24,947,428 $2,378 $25,537,354 
Criticized—————— 410 5,423 5,833 
Nonperforming38———— — — 11 
Total global fund banking$439,497 $48,305 $68,491 $22,878 $2,389 $5,999 $24,947,838 $7,801 $25,543,198 
Investor dependent:
Early stage:
Risk rating:
Pass $667,006 $370,189 $120,920 $32,163 $1,234 $405 $96,363 $617 $1,288,897 
Criticized46,889 72,495 26,170 10,204 3,557 334 18,980 — 178,629 
Nonperforming2,438 9,354 5,368 441 — — 739 — 18,340 
Total early stage$716,333 $452,038 $152,458 $42,808 $4,791 $739 $116,082 $617 $1,485,866 
Mid stage:
Risk rating:
Pass $840,431 $301,905 $145,588 $22,834 $5,086 $1,026 $101,423 $2,495 $1,420,788 
Criticized43,288 48,294 26,023 8,242 — 4,998 9,181 — 140,026 
Nonperforming10 614 218 2,539 — 675 — — 4,056 
Total mid stage$883,729 $350,813 $171,829 $33,615 $5,086 $6,699 $110,604 $2,495 $1,564,870 
Later stage:
Risk rating:
Pass $905,468 $393,584 $170,128 $37,967 $11 $8,087 $224,432 $4,985 $1,744,662 
Criticized22,286 55,254 30,252 1,142 — 1,547 37,282 — 147,763 
Nonperforming16,691 1,797 3,522 — — — 6,647 — 28,657 
Total later stage$944,445 $450,635 $203,902 $39,109 $11 $9,634 $268,361 $4,985 $1,921,082 
Total investor dependent$2,544,507 $1,253,486 $528,189 $115,532 $9,888 $17,072 $495,047 $8,097 $4,971,818 
Cash flow dependent:
Sponsor led buyout:
Risk rating:
Pass $791,480 $451,561 $273,719 $166,820 $36,900 $— $75,492 $— $1,795,972 
Criticized500 70,324 39,020 21,607 13,003 — 8,751 — 153,205 
Nonperforming33 11,869 16,068 7,177 — — 4,849 — 39,996 
Total sponsor led buyout
$792,013 $533,754 $328,807 $195,604 $49,903 $— $89,092 $— $1,989,173 
Other
Risk rating:
Pass $879,542 $513,242 $179,169 $133,235 $38,808 $101 $933,274 $— $2,677,371 
Criticized19,246 67,854 33,779 4,477 — — 136,629 — 261,985 
Nonperforming— — 4,552 — — — 1,452 — 6,004 
Total other$898,788 $581,096 $217,500 $137,712 $38,808 $101 $1,071,355 $— $2,945,360 
Total cash flow dependent$1,690,801 $1,114,850 $546,307 $333,316 $88,711 $101 $1,160,447 $— $4,934,533 
Private bank:
Risk rating:
Pass $1,878,184 $1,152,903 $394,351 $352,857 $294,870 $405,909 $382,442 $660 $4,862,176 
Criticized3,480 9,985 4,486 1,202 5,101 7,725 749 — 32,728 
Nonperforming— 563 3,197 — — 1,679 713 — 6,152 
Total private bank$1,881,664 $1,163,451 $402,034 $354,059 $299,971 $415,313 $383,904 $660 $4,901,056 
Balance sheet dependent:
Risk rating:
Pass $837,613 $190,140 $198,532 $19,213 $— $— $857,642 $1,505 $2,104,645 
Criticized55,887 3,733 171 — — — 26,587 — 86,378 
Nonperforming— — — — — — — — — 
Total balance sheet dependent
$893,500 $193,873 $198,703 $19,213 $— $— $884,229 $1,505 $2,191,023 
Premium wine:
Risk rating:
Pass $126,476 $193,744 $70,783 $79,088 $114,812 $153,841 $135,461 $36,192 $910,397 
Criticized17,882 24,286 35,737 10,300 13,559 5,766 33,718 — 141,248 
Nonperforming— — — — 998 — — — 998 
Total Premium wine$144,358 $218,030 $106,520 $89,388 $129,369 $159,607 $169,179 $36,192 $1,052,643 
Other:
Risk rating:
Pass $— $16,251 $10,910 $— $— $433 $— $— $27,594 
Criticized3 — — — — — 60 — 63 
Nonperforming— 30 — — — — — — 30 
Total other
$3 $16,281 $10,910 $— $— $433 $60 $— $27,687 
SBA loans:
Risk rating:
Pass $1,455,990 $— $— $— $— $— $— $— $1,455,990 
Criticized103,540 — — — — — — — 103,540 
Nonperforming— — — — — — — — — 
Total SBA loans
$1,559,530 $— $— $— $— $— $— $— $1,559,530 
Total loans$9,153,860 $4,008,276 $1,861,154 $934,386 $530,328 $598,525 $28,040,704 $54,255 $45,181,488 
Allowance for Credit Losses: Loans
In the first quarter of 2021, the ACL for loans decreased $56.0 million driven primarily by an improved economic forecast in Moody’s Analytics March 2021 forecast utilized in our quantitative model, as compared to the forecast utilized in December 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 growth forecast also improved in the March 2021 forecast.
The economic forecast in Moody's Analytics March 2021 forecast was utilized in our quantitative model for the ACL as of March 31, 2021. We determined the 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 March 2021 forecast, we addressed the risk through management's qualitative adjustments to our ACL.
We do not estimate expected credit losses ("ECL") on accrued interest receivable ("AIR") on loans, as AIR is reversed or written off when the full collection of the AIR related to a loan becomes doubtful. AIR on loans totaled $138.4 million at March 31, 2020 and $126.4 million at December 31, 2020 and is reported in "Accrued interest receivable and other assets" in our unaudited interim consolidated balance sheets.
The following tables summarize the activity relating to our allowance for credit losses for loans for the three months ended March 31, 2021 and 2020, broken out by portfolio segment:
Three months ended March 31, 2021Beginning Balance December 31, 2020Charge-offsRecoveriesProvision (Reduction) for Credit LossesForeign Currency Translation AdjustmentsEnding Balance March 31, 2021
(Dollars in thousands)
Global fund banking$45,584 $(79,912)$— $94,329 $— $60,001 
Investor dependent:
Early stage86,674 (14,123)838 (11,121)(21)62,247 
Growth stage126,683 (120)3,693 (25,546)(24)104,686 
Total investor dependent213,357 (14,243)4,531 (36,667)(45)166,933 
Cash flow and balance sheet dependent124,249 — — (12,758)2 111,493 
Private bank53,629 — 2 (8,567)— 45,064 
Premium wine and other9,036 (850)320 (401)155 8,260 
SBA loans1,910 — — (1,910)— — 
Total allowance for credit losses$447,765 $(95,005)$4,853 $34,026 $112 $391,751 
Three months ended March 31, 2020Beginning Balance December 31, 2019Impact of adopting ASC 326Charge-offsRecoveriesProvision (Reduction) for Credit LossesForeign Currency Translation AdjustmentsEnding Balance March 31, 2020
(Dollars in thousands)
Global fund banking$107,285 $(69,888)$— $— $19,557 $(180)$56,774 
Investor dependent:
Early stage26,245 39,911 (10,183)1,573 70,214 (571)127,189 
Growth stage56,125 31,713 (23,316)3,337 81,183 (530)148,512 
Total investor dependent82,370 71,624 (33,499)4,910 151,397 (1,101)275,701 
Cash flow and balance sheet dependent80,820 (1,269)(2,624)2,845 25,301 (331)104,742 
Private bank21,551 12,615 (581)— 54,490 (280)87,795 
Premium wine and other12,898 12,382 (192)— (1,844)707 23,951 
Total allowance for credit losses$304,924 $25,464 $(36,896)$7,755 $248,901 $(1,185)$548,963 
The following table summarizes the aging of our loans broken out by risk-based segment as of March 31, 2021 and December 31, 2020:
(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
March 31, 2021:
Global fund banking$10,002 $3 $4,106 $14,111 $27,292,815 $27,306,926 $4,088 
Investor dependent:
Early stage6,270 643 500 7,413 1,515,795 1,523,208 9 
Mid stage8,127 155 — 8,282 1,579,903 1,588,185 — 
Later stage3,272 — — 3,272 2,052,404 2,055,676 — 
Total investor dependent17,669 798 500 18,967 5,148,102 5,167,069 9 
Cash flow dependent:
Sponsor led buyout— — — — 1,984,567 1,984,567 — 
Other3,839 69 485 4,393 2,955,216 2,959,609 — 
Total cash flow dependent3,839 69 485 4,393 4,939,783 4,944,176 — 
Private bank— 1,973 — 1,973 5,061,854 5,063,827 — 
Balance sheet dependent6,962 62 — 7,024 2,494,500 2,501,524 — 
Premium wine— — 998 998 1,039,225 1,040,223 — 
Other1 — — 1 45,687 45,688 — 
SBA loans117 174 394 685 1,605,048 1,605,733 394 
Total loans$38,590 $3,079 $6,483 $48,152 $47,627,014 $47,675,166 $4,491 
December 31, 2020:
Global fund banking$27,606 $8 $11 $27,625 $25,515,573 $25,543,198 $— 
Investor dependent:
Early stage6,320 1,840 202 8,362 1,477,504 1,485,866 — 
Mid stage5,984 238 907 7,129 1,557,741 1,564,870 — 
Later stage5,363 — — 5,363 1,915,719 1,921,082 — 
Total investor dependent17,667 2,078 1,109 20,854 4,950,964 4,971,818 — 
Cash flow dependent
Sponsor led buyout34 — — 34 1,989,139 1,989,173 — 
Other6,510 58 — 6,568 2,938,792 2,945,360 — 
Total cash flow dependent6,544 58 — 6,602 4,927,931 4,934,533 — 
Private bank4,292 3,990 — 8,282 4,892,774 4,901,056 — 
Balance sheet dependent987 1,089 — 2,076 2,188,947 2,191,023 — 
Premium wine3,168 — 998 4,166 1,048,477 1,052,643 — 
Other3 28 82 113 27,574 27,687 — 
SBA loans— — — — 1,559,530 1,559,530 — 
Total loans$60,267 $7,251 $2,200 $69,718 $45,111,770 $45,181,488 $— 
Nonaccrual Loans
The following table summarizes our nonaccrual loans with no allowance for credit loss at March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
(Dollars in thousands)Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossNonaccrual Loans Nonaccrual Loans with no Allowance for Credit Loss
Global fund banking$18 $8 $11 $11 
Investor dependent:
Early stage7,766 376 18,340 3 
Mid stage— — 4,056 3,159 
Later stage27,403 6,437 28,657 118 
Total investor dependent35,169 6,813 51,053 3,280 
Cash flow dependent:
Sponsor led buyout39,848 — 39,996 — 
Other5,628 572 6,004 1,138 
Total cash flow dependent45,476 572 46,000 1,138 
Private bank8,445 2,365 6,152 2,393 
Balance sheet dependent— — — — 
Premium wine1,139 997 998 998 
Other— — 30 30 
SBA loans— — — — 
Total nonaccrual loans$90,247 $10,755 $104,244 $7,850 
Troubled Debt Restructurings
As of March 31, 2021, we had 15 TDRs with a total carrying value of $72.8 million where concessions have been granted to borrowers experiencing financial difficulties, in an attempt to maximize collection. There were no unfunded commitments available for funding to the clients associated with these TDRs as of March 31, 2021.
The following table summarizes our loans modified in TDRs, broken out by risk-based segment, at March 31, 2021 and December 31, 2020:
(Dollars in thousands)March 31, 2021December 31, 2020
Loans modified in TDRs:
Global fund banking$— $— 
Investor dependent:
Early stage2,322 6,705 
Mid stage— 4,050 
Later stage20,953 24,896 
Total investor dependent23,275 35,651 
Cash flow dependent:
Sponsor led buyout39,897 21,529 
Other4,903 1,237 
Total cash flow dependent44,800 22,766 
Private bank2,079 — 
Balance sheet dependent— — 
Premium wine2,631 2,661 
Other— — 
SBA loans— — 
Total loans modified in TDRs$72,785 $61,078 
The following table summarizes the recorded investment in loans modified in TDRs, broken out by risk-based segment, for modifications made during the three months ended March 31, 2021 and 2020:
 Three months ended March 31,
(Dollars in thousands)20212020
Loans modified in TDRs during the period:
Global fund banking$— $— 
Investor dependent:
Early stage— — 
Mid stage— 5,955 
Later stage— 2,769 
Total investor dependent— 8,724 
Cash flow dependent:
Sponsor led buyout18,439 — 
Other3,734 — 
Total cash flow dependent22,173 — 
Private bank2,079 — 
Balance sheet dependent— — 
Premium wine— — 
Other— — 
SBA loans— — 
Total loans modified in TDRs during the period (1)$24,252 $8,724 
(1)There were $1.8 million and $12.5 million of partial charge-offs for the three months ended March 31, 2021 and 2020, respectively.

During the three months ended March 31, 2021 and 2020, new TDRs of $22.2 million and $8.3 million, respectively, were modified through payment deferrals granted to our clients. During the three months ended March 31, 2021 and 2020, $2.1 million and $0.4 million, respectively, were modified through forgiveness of principal.
The following table summarizes the recorded investment in loans modified in TDRs within the previous 12 months that subsequently defaulted during the three months ended March 31, 2021 and 2020:
 Three months ended March 31,
(Dollars in thousands)20212020
TDRs modified within the previous 12 months that defaulted during the period:
Global fund banking$— $— 
Investor dependent:
Early stage— — 
Mid stage— — 
Later stage— — 
Total investor dependent— — 
Cash flow dependent:
Sponsor led buyout— — 
Other3,734 — 
Total cash flow dependent3,734 — 
Private bank— — 
Balance sheet dependent— — 
Premium wine— 8,247 
Other— — 
SBA loans
— — 
Total TDRs modified within the previous 12 months that defaulted in the period$3,734 $8,247 
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 March 31, 2021.
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 March 31, 2021, our ACL estimates utilized the improved Moody's economic forecasts from March 2021 as mentioned above.
The following table summarizes the activity relating to our allowance for credit losses for unfunded credit commitments for the three months ended March 31, 2021 and 2020:
 Three months ended March 31,
(Dollars in thousands)20212020
Allowance for credit losses: unfunded credit commitments, beginning balance
$120,796 $67,656 
Impact of adopting ASC 326— 22,826 
Reduction of credit losses(16,067)(5,477)
Foreign currency translation adjustments21 (315)
Allowance for credit losses: unfunded credit commitments, ending balance (1)
$104,750 $84,690 
(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 14 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of this report for additional disclosures related to our commitments to extend credit.