XML 31 R21.htm IDEA: XBRL DOCUMENT v3.21.1
Off-Balance Sheet Arrangements, Guarantees and Other Commitments
 3 Months Ended
Mar. 31, 2021
Disclosure Off Balance Sheet Arrangements Guarantees And Other Commitments Additional Information [Abstract]  
Off-Balance Sheet Arrangements, Guarantees and Other Commitments Off-Balance Sheet Arrangements, Guarantees and Other Commitments
In the normal course of business, we use financial instruments with off-balance sheet risk to meet the financing needs of our customers. These financial instruments include commitments to extend credit, commercial and standby letters of credit and commitments to invest in venture capital and private equity fund investments. These instruments involve, to varying degrees, elements of credit risk. Credit risk is defined as the possibility of sustaining a loss because other parties to the financial instrument fail to perform in accordance with the terms of the contract.
Commitments to Extend Credit
The following table summarizes information related to our commitments to extend credit at March 31, 2021 and December 31, 2020:
(Dollars in thousands)March 31, 2021December 31, 2020
Loan commitments available for funding: (1)$30,923,217 $28,975,133 
Commercial and standby letters of credit (2)3,063,410 3,007,118 
Total unfunded credit commitments$33,986,627 $31,982,251 
Allowance for unfunded credit commitments (3)104,750 120,796 
(1)Represents commitments which are available for funding, due to clients meeting all collateral, compliance and financial covenants required under loan commitment agreements.
(2)See below for additional information on our commercial and standby letters of credit.
(3)Our allowance for credit losses for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit.

Commercial and Standby Letters of Credit
The table below summarizes our commercial and standby letters of credit at March 31, 2021. The maximum potential amount of future payments represents the amount that could be remitted under letters of credit if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or from the collateral held or pledged.
(Dollars in thousands)Expires in One
Year or Less		Expires After
One Year		Total Amount
Outstanding		Maximum Amount
of Future Payments
Financial standby letters of credit$2,833,713 $79,552 $2,913,265 $2,913,265 
Performance standby letters of credit118,222 20,116 138,338 138,338 
Commercial letters of credit11,807 — 11,807 11,807 
Total$2,963,742 $99,668 $3,063,410 $3,063,410 
Deferred fees related to financial and performance standby letters of credit were $17.0 million at March 31, 2021 and $16.9 million at December 31, 2020. At March 31, 2021, collateral in the form of cash of $1.7 billion was available to us to reimburse losses, if any, under financial and performance standby letters of credit.
Commitments to Invest in Venture Capital and Private Equity Funds
We make commitments to invest in venture capital and private equity funds, which generally make investments in privately-held companies. Commitments to invest in these funds are generally made for a 10-year period from the inception of the fund. Although the limited partnership agreements governing these investments typically do not restrict the general partners from calling 100% of committed capital in one year, it is customary for these funds to call most of the capital commitments over 5 to 7 years, and in certain cases, the funds may not call 100% of committed capital. The actual timing of future cash requirements to fund these commitments is generally dependent upon the investment cycle, overall market conditions, and the nature and type of industry in which the privately held companies operate. The following table details our total capital commitments, unfunded capital commitments, and our ownership percentage in each fund at March 31, 2021:
(Dollars in thousands)SVBFG Capital Commitments    SVBFG Unfunded    
Commitments		SVBFG Ownership  
of each Fund
CP II, LP (1)$1,200 $162 5.1 %
Capital Preferred Return Fund, LP12,688 — 20.0 
Growth Partners, LP24,670 1,340 33.0 
Strategic Investors Fund, LP15,300 688 12.6 
Strategic Investors Fund II, LP15,000 1,050 8.6 
Strategic Investors Fund III, LP15,000 1,275 5.9 
Strategic Investors Fund IV, LP12,239 2,325 5.0 
Strategic Investors Fund V funds515 131 Various
Other venture capital and private equity fund investments (equity method accounting)
21,843 2,795 Various
Debt funds (equity method accounting)58,733 211 Various
Other fund investments (2)277,515 10,118 Various
Total$454,703 $20,095 
(1)Our ownership includes direct ownership of 1.3 percent and indirect ownership interest of 3.8 percent through our investment in Strategic Investors Fund II, LP.
(2)Represents commitments to 167 funds (primarily venture capital funds) where our ownership interest is generally less than five percent of the voting interests of each such fund.

The following table details the amounts of remaining unfunded commitments to venture capital and private equity funds by our consolidated managed funds of funds (including our interest and the noncontrolling interests) at March 31, 2021:
(Dollars in thousands)Unfunded Commitments    
Strategic Investors Fund, LP$196 
Capital Preferred Return Fund, LP1,519 
Growth Partners, LP2,518 
Total$4,233