Short-Term Borrowings and Long-Term Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Short-Term Borrowings and Long-Term Debt

Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at June 30, 2021 and December 31, 2020:

				Carrying Value
(Dollars in millions)	Maturity	Principal value at June 30, 2021		June 30, 2021		December 31, 2020
Short-term borrowings:
Other short-term borrowings	(1)	$	34	$	34	$	21
Total short-term borrowings				$	34	$	21
Long-term debt:
3.50% Senior Notes	January 29, 2025	$	350	$	349	$	349
3.125% Senior Notes	June 5, 2030	500		495		495
1.800% Senior Notes	February 2, 2031	500		494		—
2.100% Senior Notes	May 15, 2028	500		496		—
Total long-term debt				$	1,834	$	844

(1)Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor.

Interest expense related to short-term borrowings and long-term debt was $11 million and $20 million for the three and six months ended June 30, 2021, respectively and $5 million and $11 million for the three and six months ended June 30, 2020, respectively. The weighted average interest rate associated with our short-term borrowings was 0.8 percent as of June 30, 2021 and 0.8 percent as of as of December 31, 2020.

Short-term Borrowings

We have certain facilities in place to enable us to access short-term borrowings on a secured and unsecured basis. Our secured facilities include collateral pledged to the FHLB of San Francisco and the discount window at the FRB (using both fixed income securities and loans as collateral). Our unsecured facility consists of our uncommitted federal funds lines. As of June 30, 2021, collateral pledged to the FHLB of San Francisco was comprised primarily of fixed income investment securities and loans and had a carrying value of $7.1 billion, of which $5.9 billion was available to support additional borrowings. As of June 30, 2021, collateral pledged to the discount window at the FRB was comprised of fixed income investment securities and had a carrying value of $0.9 billion, all of which was unused and available to support additional borrowings. Our total unused and available borrowing capacity for our uncommitted federal funds lines totaled $1.9 billion at June 30, 2021. Our total unused and available borrowing capacity under our master repurchase agreements with various financial institutions totaled $4.0 billion at June 30, 2021.

3.50% Senior Notes

In January 2015, SVB Financial issued $350 million of 3.50% Senior Notes due in January 2025. We received net proceeds of approximately $346 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 3.50% Senior Notes at June 30, 2021 was $349 million, which is reflective of $1 million of debt issuance costs and a discount of less than $1 million.

3.125% Senior Notes

On June 5, 2020, the Company issued $500 million of 3.125% Senior Notes due in June 2030 ("3.125% Senior Notes"). The 3.125% Senior Notes may be redeemed by us, at our option, at any time prior to March 5, 2030, at a redemption price equal to the full aggregate principal amount plus a “make-whole” premium payment. We received net proceeds from this offering of approximately $495 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 3.125% Senior Notes at June 30, 2021 was $495 million, which is reflective of $4 million of debt issuance costs and a discount of less than $1 million.

1.800% Senior Notes

On February 2, 2021 the Company issued $500 million of 1.800% Senior Notes due February 2031 ("1.800% Senior Notes"), with interest payments starting August 2, 2021, and payable every February 2nd and August 2nd. The notes are senior unsecured obligations of SVB Financial Group and rank equally with all of our other unsecured and unsubordinated indebtedness. We received net proceeds from this offering of approximately $494 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 1.800% Senior Notes at June 30, 2021 was $494 million, which is reflective of $4 million of debt issuance costs and a $2 million discount.

2.100% Senior Notes

On May 13, 2021 the Company issued $500 million of 2.100% Senior Notes due May 2028 ("2.100% Senior Notes"), with interest payments starting November 15, 2021, and payable every May 15th and November 15th. The notes are senior unsecured obligations of SVB Financial Group and rank equally with all of our other unsecured and unsubordinated indebtedness. We received net proceeds from this offering of approximately $496 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 2.100% Senior Notes at June 30, 2021 was $496 million, which is reflective of $4 million of debt issuance costs and a discount of less than $1 million.