Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2021

Our reportable segment information for the three and nine months ended September 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 September 30, 2021
Net interest income	$	774	$	66	$	—	$	—	$	12	$	852
(Provision for) reduction of credit losses	29		(20)		—		—		(30)		(21)
Noninterest income	182		25		145		131		189		672
Noninterest expense (3)	(339)		(90)		(15)		(142)		(293)		(879)
Income (loss) before income tax expense (4)	$	646	$	(19)	$	130	$	(11)	$	(122)	$	624
Total average loans, amortized cost	$	45,798	$	12,506	$	—	$	—	$	987	$	59,291
Total average assets (5) (6)	152,364		14,918		730		837		13,841		182,690
Total average deposits	149,160		13,150		—		—		1,082		163,392
Three months ended September 30, 2020
Net interest income (loss)	$	513	$	19	$	—	$	—	$	(4)	$	528
Reduction (provision for) credit losses	38		15		—		—		(1)		52
Noninterest income	148		1		60		114		224		547
Noninterest expense (3)	(258)		(12)		(11)		(78)		(132)		(491)
Income before income tax expense (4)	$	441	$	23	$	49	$	36	$	87	$	636
Total average loans, amortized cost	$	30,764	$	4,263	$	—	$	—	$	2,292	$	37,319
Total average assets (5) (6)	77,803		4,297		414		605		5,229		88,348
Total average deposits	74,826		2,164		—		—		690		77,680
Nine months ended September 30, 2021
Net interest income	$	2,108	$	122	$	—	$	—	$	10	$	2,240
Provision for credit losses	(27)		(16)		—		—		(32)		(75)
Noninterest income	515		27		389		450		796		2,177
Noninterest expense (3)	(919)		(118)		(48)		(376)		(707)		(2,168)
Income before income tax expense (4)	$	1,677	$	15	$	341	$	74	$	67	$	2,174
Total average loans, amortized cost	$	42,628	$	7,573	$	—	$	—	$	1,642	$	51,843
Total average assets (5) (6)	131,218		8,418		641		778		11,897		152,952
Total average deposits	128,272		6,842		—		—		999		136,113
Nine months ended September 30, 2020
Net interest income	$	1,462	$	53	$	—	$	—	$	50	$	1,565
Provision for credit losses	(200)		(44)		—		—		(14)		(258)
Noninterest income	448		2		87		340		341		1,218
Noninterest expense (3)	(725)		(33)		(28)		(248)		(336)		(1,370)
Income (loss) before income tax expense (4)	$	985	$	(22)	$	59	$	92	$	41	1,155
Total average loans, amortized cost	$	30,127	$	4,053	$	—	$	—	$	1,656	$	35,836
Total average assets (5) (6)	69,213		4,088		430		515		5,515		79,761
Total average deposits	66,408		2,069		—		—		689		69,166

(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 $10 million and $6 million for the three months ended September 30, 2021 and 2020, respectively, and $25 million and $18 million for the nine months ended September 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 and Private Bank is goodwill of $138 million and $201 million, respectively, for both the three and nine months ended September 30, 2021. Included in the total average assets for SVB Leerink is goodwill of $138 million for both the three and nine months ended September 30, 2020.