Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2021

Our reportable segment information for the three and six months ended June 30, 2021 and 2020 is as follows:


(Dollars in millions)	Global Commercial Bank (1)		SVB Private Bank		SVB Capital (1)		SVB Leerink (1)		Other Items (2)		Total
Three months ended June 30, 2021
Net interest income	$	715	$	29	$	—	$	—	$	(16)	$	728
Provision for credit losses	(11)		(5)		—		—		(19)		(35)
Noninterest income	174		1		175		149		262		761
Noninterest expense (3)	(307)		(15)		(18)		(98)		(215)		(653)
Income before income tax expense (4)	$	571	$	10	$	157	$	51	$	12	$	801
Total average loans, amortized cost	$	42,727	$	5,154	$	—	$	—	$	1,931	$	49,812
Total average assets (5) (6)	131,885		5,199		613		729		12,291		150,717
Total average deposits	128,918		3,977		—		—		865		133,760
Three months ended June 30, 2020
Net interest income	$	485	$	19	$	—	$	—	$	9	$	513
Provision for credit losses	(44)		(4)		—		—		(18)		(66)
Noninterest income	133		1		21		164		50		369
Noninterest expense (3)	(241)		(10)		(8)		(109)		(112)		(480)
Income (loss) before income tax expense (4)	$	333	$	6	$	13	$	55	$	(71)	$	336
Total average loans, amortized cost	$	30,472	$	4,036	$	—	$	—	$	2,004	$	36,512
Total average assets (5) (6)	67,936		4,072		430		455		5,540		78,433
Total average deposits	65,091		2,120		—		—		706		67,917
Six months ended June 30, 2021
Net interest income	$	1,334	$	56	$	—	$	—	$	(2)	$	1,388
(Provision for) reduction of credit losses	(56)		4		—		—		(2)		(54)
Noninterest income	333		2		244		319		607		1,505
Noninterest expense (3)	(585)		(28)		(34)		(235)		(407)		(1,289)
Income before income tax expense (4)	$	1,026	$	34	$	210	$	84	$	196	$	1,550
Total average loans, amortized cost	$	41,016	$	5,066	$	—	$	—	$	1,974	$	48,056
Total average assets (5) (6)	120,470		5,114		595		748		10,910		137,837
Total average deposits	117,655		3,636		—		—		957		122,248
Six months ended June 30, 2020
Net interest income	$	949	$	34	$	—	$	—	$	54	$	1,037
Provision for credit losses	(238)		(59)		—		—		(13)		(310)
Noninterest income	300		1		26		226		117		670
Noninterest expense (3)	(466)		(20)		(17)		(171)		(205)		(879)
Income (loss) before income tax expense (4)	$	545	$	(44)	$	9	$	55	$	(47)	518
Total average loans, amortized cost	$	29,805	$	3,946	$	—	$	—	$	1,335	$	35,086
Total average assets (5) (6)	64,871		3,982		439		469		5,659		75,420
Total average deposits	62,153		2,021		—		—		689		64,863

(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 reportable 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 $8 million and $6 million for the three months ended June 30, 2021 and 2020, respectively, and $14 million and $11 million for the six months ended June 30, 2021 and 2020, respectively.

(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 $138 million for the three and six months ended June 30, 2021 and 2020.