(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Exchange on Which Registered | ||||||||||||
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
ACL — Allowance for Credit Losses | HTM — Held-to-Maturity | ||||
AFS — Available-for-Sale | IASB — International Accounting Standards Board | ||||
AIR — Accrued Interest Receivable | IOSCO — International Organization of Securities Commissions | ||||
ALCO — Asset Liability Management Committee | IPO — Initial Public Offering | ||||
AOCI — Accumulated Other Comprehensive Income | IRS — Internal Revenue Service | ||||
ARRC — Alternative Reference Rates Committee | ISDA — International Swaps and Derivatives Association, Inc. | ||||
ASC — Accounting Standards Codification | IT — Information Technology | ||||
ASU — Accounting Standards Update | LCR — Liquidity Coverage Ratio | ||||
AUM — Private Bank Assets Under Management | LIBOR — London Interbank Offered Rate | ||||
Boston Private — Boston Private Financial Holdings, Inc. | M&A — Merger and Acquisition | ||||
BPS — Basis Points | MBS — Mortgage-Backed Securities | ||||
C&I — Commercial and Industrial | NFSR — Net Stable Funding Ratio | ||||
CECL — Current Expected Credit Losses | NII — Net Interest Income | ||||
CET1 — Common Equity Tier 1 | NM — Not meaningful | ||||
CMBS — Commercial Mortgage-Backed Securities | OREO — Other Real Estate Owned | ||||
CMO — Collateralized Mortgage Obligations | PCD — Purchased Credit-Deteriorated | ||||
CRA — Community Reinvestment Act | PPP — Paycheck Protection Program | ||||
CRE — Commercial Real Estate | PPPLF — Paycheck Protection Program Lending Facility | ||||
EHOP — Employee Home Ownership Program of the Company | SBA — U.S. Small Business Association | ||||
EPS — Earnings Per Share | SEC — Securities and Exchange Commission | ||||
ERI — Energy and Resource Innovation | SLBO — Sponsor-Led Buy-Out | ||||
ESOP — Employee Stock Ownership Plan of the Company | SOFR — Secured Overnight Financing Rate | ||||
ESPP — 1999 Employee Stock Purchase Plan of the Company | SPAC — Special Purpose Acquisition Company | ||||
EVE — Economic Value of Equity | SPD-SVB — SPD Silicon Valley Bank Co., Ltd. (the Bank's joint venture | ||||
FASB — Financial Accounting Standards Board | bank in China) | ||||
FDIC — Federal Deposit Insurance Corporation | SVB Securities — SVB Securities Holdings LLC | ||||
FHLB — Federal Home Loan Bank | TDR — Troubled Debt Restructuring | ||||
FRB — Federal Reserve Bank | U.K. — United Kingdom | ||||
FTE — Full-Time Equivalent | VIE — Variable Interest Entity | ||||
FTP — Funds Transfer Pricing | |||||
GAAP — Accounting principles generally accepted in the United | |||||
States of America |
(Dollars in millions, except par value and share data) | June 30, 2022 | December 31, 2021 | ||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Available-for-sale securities, at fair value (cost of $ | ||||||||||||||
Held-to-maturity securities, at amortized cost and net of allowance for credit losses of $ | ||||||||||||||
Non-marketable and other equity securities | ||||||||||||||
Total investment securities | ||||||||||||||
Loans, amortized cost | ||||||||||||||
Allowance for credit losses: loans | ( | ( | ||||||||||||
Net loans | ||||||||||||||
Premises and equipment, net of accumulated depreciation and amortization | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets, net | ||||||||||||||
Lease right-of-use assets | ||||||||||||||
Accrued interest receivable and other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and total equity: | ||||||||||||||
Liabilities: | ||||||||||||||
Noninterest-bearing demand deposits | $ | $ | ||||||||||||
Interest-bearing deposits | ||||||||||||||
Total deposits | ||||||||||||||
Short-term borrowings | ||||||||||||||
Lease liabilities | ||||||||||||||
Other liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies (Note 11 and Note 14) | ||||||||||||||
SVBFG stockholders’ equity: | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive income (loss) | ( | ( | ||||||||||||
Total SVBFG stockholders’ equity | ||||||||||||||
Noncontrolling interests | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities and total equity | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Loans | $ | $ | $ | $ | ||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Taxable | ||||||||||||||||||||||||||
Non-taxable | ||||||||||||||||||||||||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | ||||||||||||||||||||||||||
Total interest income | ||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||
Provision for credit losses | ||||||||||||||||||||||||||
Net interest income after provision for credit losses | ||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||
Gains/(loss) on investment securities, net | ( | ( | ||||||||||||||||||||||||
Gains on equity warrant assets, net | ||||||||||||||||||||||||||
Client investment fees | ||||||||||||||||||||||||||
Wealth management and trust fees | ||||||||||||||||||||||||||
Foreign exchange fees | ||||||||||||||||||||||||||
Credit card fees | ||||||||||||||||||||||||||
Deposit service charges | ||||||||||||||||||||||||||
Lending related fees | ||||||||||||||||||||||||||
Letters of credit and standby letters of credit fees | ||||||||||||||||||||||||||
Investment banking revenue | ||||||||||||||||||||||||||
Commissions | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total noninterest income | ||||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||
Professional services | ||||||||||||||||||||||||||
Premises and equipment | ||||||||||||||||||||||||||
Net occupancy | ||||||||||||||||||||||||||
Business development and travel | ||||||||||||||||||||||||||
FDIC and state assessments | ||||||||||||||||||||||||||
Merger-related charges | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total noninterest expense | ||||||||||||||||||||||||||
Income before income tax expense | ||||||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
Net income before noncontrolling interests and dividends | ||||||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests | ( | ( | ||||||||||||||||||||||||
Preferred stock dividends | ( | ( | ( | ( | ||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per common share—basic | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per common share—diluted |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net income before noncontrolling interests | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
Change in foreign currency cumulative translation gains and losses: | ||||||||||||||||||||||||||
Foreign currency translation (losses) gains | ( | ( | ||||||||||||||||||||||||
Related tax benefit (expense) | ( | ( | ||||||||||||||||||||||||
Change in unrealized gains and losses on AFS securities: | ||||||||||||||||||||||||||
Unrealized holding gains (losses) | ( | ( | ( | |||||||||||||||||||||||
Related tax benefit (expense) | ( | |||||||||||||||||||||||||
Reclassification adjustment for loss (gains) included in net income | ( | |||||||||||||||||||||||||
Related tax expense | ||||||||||||||||||||||||||
Cumulative-effect adjustment for unrealized losses on securities transferred from AFS to HTM | ( | ( | ||||||||||||||||||||||||
Related tax benefit | ||||||||||||||||||||||||||
Amortization of unrealized holding net gains (losses) on securities transferred from AFS to HTM | ( | ( | ||||||||||||||||||||||||
Related tax (expense) benefit | ( | ( | ||||||||||||||||||||||||
Change in unrealized gains and losses on cash flow hedges: | ||||||||||||||||||||||||||
Reclassification adjustment for gains included in net income | ( | ( | ( | ( | ||||||||||||||||||||||
Related tax expense | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | ( | ( | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to SVBFG | $ | ( | $ | $ | ( | $ |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total SVBFG Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except share data) | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans and ESOP, net of restricted stock cancellations | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Preferred Stock | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans and ESOP, net of restricted stock cancellations | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | $ |
Six months ended June 30, | ||||||||||||||
(Dollars in millions) | 2022 | 2021 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income before noncontrolling interests | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Provision for credit losses | ||||||||||||||
Changes in fair values of equity warrant assets, net of proceeds from exercises | ( | ( | ||||||||||||
Changes in fair values of derivatives, net | ||||||||||||||
Losses (Gains) on investment securities, net | ( | |||||||||||||
Distributions of earnings from non-marketable and other equity securities | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Amortization of premiums and discounts on investment securities, net | ||||||||||||||
Amortization of share-based compensation | ||||||||||||||
Amortization of deferred loan fees | ( | ( | ||||||||||||
Deferred income tax (benefit) expense | ( | |||||||||||||
Excess tax benefit from exercise of stock options and vesting of restricted shares | ( | ( | ||||||||||||
Changes in other assets and liabilities: | ||||||||||||||
Accrued interest receivable and payable, net | ( | ( | ||||||||||||
Accounts receivable and payable, net | ( | |||||||||||||
Income tax receivable and payable, net | ( | |||||||||||||
Accrued compensation | ( | ( | ||||||||||||
Other, net | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of AFS securities | ( | ( | ||||||||||||
Proceeds from sales of AFS securities | ||||||||||||||
Proceeds from maturities and paydowns of AFS securities | ||||||||||||||
Purchases of HTM securities | ( | ( | ||||||||||||
Proceeds from maturities and paydowns of HTM securities | ||||||||||||||
Purchases of non-marketable and other equity securities | ( | ( | ||||||||||||
Proceeds from sales and distributions of capital of non-marketable and other equity securities | ||||||||||||||
Net increase in loans | ( | ( | ||||||||||||
Purchases of premises and equipment | ( | ( | ||||||||||||
Net cash used for investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Net (decrease) increase in deposits | ( | |||||||||||||
Net increase in short-term borrowings | ||||||||||||||
Proceeds from issuance of long-term debt | ||||||||||||||
(Distributions to noncontrolling interests), net of contributions from noncontrolling interests | ( | ( | ||||||||||||
Net proceeds from the issuance of preferred stock | ||||||||||||||
Payment of preferred stock dividend | ( | ( | ||||||||||||
Proceeds from issuance of common stock, ESPP and ESOP, net of restricted stock awards | ( | |||||||||||||
Net cash provided by financing activities | ||||||||||||||
Net increase in cash and cash equivalents | ||||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ | ||||||||||||
Supplemental disclosures: | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest | $ | $ | ||||||||||||
Income taxes | ||||||||||||||
Noncash items during the period: | ||||||||||||||
Changes in unrealized gains and losses on AFS securities, net of tax | $ | ( | $ | ( | ||||||||||
Distributions of stock from investments | ||||||||||||||
Transfers from AFS securities to HTM |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
(Dollars in millions) | Income Statement Location | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||
Reclassification adjustment for loss (gains) included in net income | Gains/(loss) on investment securities, net | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Related tax expense | Income tax expense | |||||||||||||||||||||||||||||||
Reclassification adjustment for gains included in net income | Net interest income | ( | ( | ( | ( | |||||||||||||||||||||||||||
Related tax expense | Income tax expense | |||||||||||||||||||||||||||||||
Total reclassification adjustment for gains included in net income, net of tax | $ | ( | $ | ( | $ | ( | $ | ( |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Balance, beginning of period, net of tax | $ | $ | $ | $ | ||||||||||||||||||||||
Net realized (gain) loss reclassified to net income, net of tax | ( | ( | ( | ( | ||||||||||||||||||||||
Balance, end of period, net of tax | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions except per share amounts, shares in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average common shares outstanding—basic | ||||||||||||||||||||||||||
Weighted average effect of dilutive securities: | ||||||||||||||||||||||||||
Stock options and ESPP | ||||||||||||||||||||||||||
Restricted stock units and awards | ||||||||||||||||||||||||||
Weighted average common shares outstanding—diluted | ||||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Shares in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Stock options | ||||||||||||||||||||||||||
Restricted stock units | ||||||||||||||||||||||||||
Total |
Series | Description | Amount outstanding (in millions) | Carrying value (in millions) | Shares issued and outstanding | Par Value | Ownership interest per depositary share | Liquidation preference per depositary share | 2022 dividends paid per depositary share | ||||||||||||||||||||||||||||||||||||||||||
Series A | 5.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock | $ | $ | $ | 1/40th | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Series B | 4.100% Fixed-Rate Non-Cumulative Perpetual Preferred Stock | 1/100th | ||||||||||||||||||||||||||||||||||||||||||||||||
Series C | 4.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock | 1/100th | ||||||||||||||||||||||||||||||||||||||||||||||||
Series D | 4.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock | 1/100th | ||||||||||||||||||||||||||||||||||||||||||||||||
Series E | 4.700% Fixed-Rate Non-Cumulative Perpetual Preferred Stock | 1/100th |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total SVBFG Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except share data) | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans and ESOP, net of restricted stock cancellations | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Preferred Stock | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other, net | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans and ESOP, net of restricted stock cancellations | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | $ |
(Dollars in millions) | Consolidated VIEs | Unconsolidated VIEs | Maximum Exposure to Loss in Unconsolidated VIEs | |||||||||||||||||
June 30, 2022: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | — | ||||||||||||||||
Non-marketable and other equity securities (1) | ||||||||||||||||||||
Accrued interest receivable and other assets (2) | — | |||||||||||||||||||
Total assets | $ | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Other liabilities (1) | 614 | — | ||||||||||||||||||
Long term debt (2) | — | |||||||||||||||||||
Total liabilities | $ | $ | $ | — | ||||||||||||||||
December 31, 2021: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | — | ||||||||||||||||
Non-marketable and other equity securities (1) | ||||||||||||||||||||
Accrued interest receivable and other assets (2) | — | |||||||||||||||||||
Total assets | $ | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Other liabilities (1) | $ | $ | — | |||||||||||||||||
Long term debt (2) | $ | — | ||||||||||||||||||
Total liabilities | $ | $ | $ | — |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Interest bearing deposits with the Federal Reserve Bank | ||||||||||||||
Interest bearing deposits with other institutions | ||||||||||||||
Securities purchased under agreements to resell (1) | ||||||||||||||
Other short-term investment securities | ||||||||||||||
Total cash and cash equivalents | $ | $ |
June 30, 2022 | ||||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | ||||||||||||||||||||||
AFS securities, at fair value: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
U.S. agency debentures | ( | |||||||||||||||||||||||||
Foreign government debt securities | ||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||
Agency-issued MBS | ( | |||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ( | |||||||||||||||||||||||||
Agency-issued CMBS | ( | |||||||||||||||||||||||||
Total AFS securities | $ | $ | $ | ( | $ |
December 31, 2021 | ||||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | ||||||||||||||||||||||
AFS securities, at fair value: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
U.S. agency debentures | ( | |||||||||||||||||||||||||
Foreign government debt securities | ||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||
Agency-issued MBS | ( | |||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ( | |||||||||||||||||||||||||
Agency-issued CMBS | ( | |||||||||||||||||||||||||
Total AFS securities | $ | $ | $ | ( | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Sales proceeds | $ | $ | $ | $ | ||||||||||||||||||||||
Net realized gains and losses: | ||||||||||||||||||||||||||
Gross realized gains | ||||||||||||||||||||||||||
Gross realized losses | ( | ( | ||||||||||||||||||||||||
Net realized gains/(losses) | $ | ( | $ | $ | $ |
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||||||||||||||||
AFS securities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
U.S. agency debentures | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||||||||
Agency-issued MBS | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Agency-issued CMO —fixed rate | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Agency-issued CMBS | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total AFS securities (1) | $ | $ | ( | $ | $ | ( | $ | $ | ( |
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||||||||||||||||
AFS securities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | ( | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
U.S. agency debentures | ( | ( | ||||||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||||||||
Agency-issued MBS | ( | ( | ||||||||||||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ( | ( | ||||||||||||||||||||||||||||||||||||
Agency-issued CMBS | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total AFS securities (1) | $ | $ | ( | $ | $ | ( | $ | $ | ( |
June 30, 2022 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | |||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
U.S. agency debentures | ||||||||||||||||||||||||||||||||
Foreign government debt securities | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-issued MBS | ||||||||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ||||||||||||||||||||||||||||||||
Agency-issued CMBS | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
June 30, 2022 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ACL | |||||||||||||||||||||||||||
HTM securities, at cost: | ||||||||||||||||||||||||||||||||
U.S. agency debentures (1) | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-issued MBS | ( | |||||||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ( | |||||||||||||||||||||||||||||||
Agency-issued CMO—variable rate | ( | |||||||||||||||||||||||||||||||
Agency-issued CMBS | ( | |||||||||||||||||||||||||||||||
Municipal bonds and notes | ( | |||||||||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||||||||
Total HTM securities | $ | $ | $ | ( | $ | $ |
December 31, 2021 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ACL | |||||||||||||||||||||||||||
HTM securities, at amortized cost: | ||||||||||||||||||||||||||||||||
U.S. agency debentures (1) | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-issued MBS | ( | |||||||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ( | |||||||||||||||||||||||||||||||
Agency-issued CMO—variable rate | ||||||||||||||||||||||||||||||||
Agency-issued CMBS | ( | |||||||||||||||||||||||||||||||
Municipal bonds and notes | ( | |||||||||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||||||||
Total HTM securities | $ | $ | $ | ( | $ | $ |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Municipal bonds and notes: | ||||||||||||||
Aaa | $ | $ | ||||||||||||
Aa1 | ||||||||||||||
Aa2 | ||||||||||||||
Aa3 | ||||||||||||||
A1 | ||||||||||||||
Total municipal bonds and notes | $ | $ | ||||||||||||
Corporate bonds: | ||||||||||||||
Aaa | $ | $ | ||||||||||||
Aa2 | ||||||||||||||
Aa3 | ||||||||||||||
A1 | ||||||||||||||
A2 | ||||||||||||||
A3 | ||||||||||||||
Total corporate bonds | $ | $ |
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Net Carry Value | Fair Value | Net Carry Value | Fair Value | Net Carry Value | Fair Value | Net Carry Value | Fair Value | Net Carry Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency debentures | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued MBS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued CMO—variable rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued CMBS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds and notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Non-marketable and other equity securities: | ||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||
Consolidated venture capital and private equity fund investments (1) | $ | $ | ||||||||||||
Unconsolidated venture capital and private equity fund investments (2) | ||||||||||||||
Other investments without a readily determinable fair value (3) | ||||||||||||||
Other equity securities in public companies (fair value accounting) (4) | ||||||||||||||
Non-marketable securities (equity method accounting) (5): | ||||||||||||||
Venture capital and private equity fund investments | ||||||||||||||
Debt funds | ||||||||||||||
Other investments | ||||||||||||||
Investments in qualified affordable housing projects, net (6) | ||||||||||||||
Total non-marketable and other equity securities | $ | $ |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | Ownership % | Amount | Ownership % | ||||||||||||||||||||||
Strategic Investors Fund, LP | $ | % | $ | % | ||||||||||||||||||||||
Capital Preferred Return Fund, LP | ||||||||||||||||||||||||||
Growth Partners, LP | ||||||||||||||||||||||||||
Redwood Evergreen Fund, LP | ||||||||||||||||||||||||||
Total consolidated venture capital and private equity fund investments | $ | $ |
(Dollars in millions) | Six months ended June 30, 2022 | Cumulative Adjustments | ||||||||||||
Measurement alternative: | ||||||||||||||
Carrying value at June 30, 2022 | $ | |||||||||||||
Carrying value adjustments: | ||||||||||||||
Impairment | $ | $ | ( | |||||||||||
Upward changes for observable prices | ||||||||||||||
Downward changes for observable prices | ( | ( |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | Ownership % | Amount | Ownership % | ||||||||||||||||||||||
Venture capital and private equity fund investments: | ||||||||||||||||||||||||||
Strategic Investors Fund II, LP | $ | % | $ | % | ||||||||||||||||||||||
Strategic Investors Fund III, LP | ||||||||||||||||||||||||||
Strategic Investors Fund IV, LP | ||||||||||||||||||||||||||
Strategic Investors Fund V funds | Various | Various | ||||||||||||||||||||||||
CP II, LP (i) | ||||||||||||||||||||||||||
Other venture capital and private equity fund investments | Various | Various | ||||||||||||||||||||||||
Total venture capital and private equity fund investments | $ | $ | ||||||||||||||||||||||||
Debt funds: | ||||||||||||||||||||||||||
Gold Hill Capital 2008, LP (ii) | $ | % | $ | % | ||||||||||||||||||||||
Other debt funds | Various | Various | ||||||||||||||||||||||||
Total debt funds | $ | $ | ||||||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||
SPD Silicon Valley Bank Co., Ltd. | $ | % | $ | % | ||||||||||||||||||||||
Other investments | Various | Various | ||||||||||||||||||||||||
Total other investments | $ | $ |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Investments in qualified affordable housing projects, net | $ | $ | ||||||||||||
Other liabilities |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Tax credits and other tax benefits recognized | $ | $ | $ | $ | ||||||||||||||||||||||
Amortization expense included in provision for income taxes (i) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net (losses) gains on non-marketable and other equity securities: | ||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||
Consolidated venture capital and private equity fund investments | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Unconsolidated venture capital and private equity fund investments | ( | ( | ||||||||||||||||||||||||
Other investments without a readily determinable fair value | ( | ( | ( | |||||||||||||||||||||||
Other equity securities in public companies (fair value accounting) | ( | ( | ||||||||||||||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||||||||||||
Venture capital and private equity fund investments | ( | ( | ||||||||||||||||||||||||
Debt funds | ||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||
Total net (losses) gains on non-marketable and other equity securities | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Less: realized net (losses) gains on sales of non-marketable and other equity securities | ( | ( | ||||||||||||||||||||||||
Net (losses) gains on non-marketable and other equity securities still held | $ | ( | $ | $ | ( | $ |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Global fund banking | $ | $ | ||||||||||||
Investor dependent: | ||||||||||||||
Early stage | ||||||||||||||
Growth stage | ||||||||||||||
Total investor dependent | ||||||||||||||
Cash flow dependent - SLBO | ||||||||||||||
Innovation C&I | ||||||||||||||
Private bank | ||||||||||||||
CRE | ||||||||||||||
Premium wine | ||||||||||||||
Other C&I | ||||||||||||||
Other | ||||||||||||||
PPP | ||||||||||||||
Total loans (1) (2) (3) | $ | $ | ||||||||||||
ACL | ( | ( | ||||||||||||
Net loans | $ | $ |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 (Dollars in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Unallocated (1) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Global fund banking: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total global fund banking | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Early stage: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total early stage | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Growth stage: |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 (Dollars in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Unallocated (1) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total growth stage | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investor dependent | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow dependent - SLBO: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash flow dependent - SLBO | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Innovation C&I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total innovation C&I | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Private bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private bank | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CRE | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium wine: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total premium wine | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other C&I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other C&I | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
PPP: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total PPP | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 (Dollars in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Unallocated (1) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Global fund banking: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total global fund banking | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Early stage: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total early stage | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Growth stage: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total growth stage | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investor dependent | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow dependent - SLBO: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash flow dependent - SLBO | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Innovation C&I: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Innovation C&I | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Private bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private bank | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CRE | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium wine: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Premium wine | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other C&I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other C&I | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 (Dollars in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Unallocated (1) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
PPP: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total PPP | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | Beginning Balance March 31, 2022 | Charge-offs | Recoveries | Provision (Reduction) for Credit Loss for Loans | Foreign Currency Translation Adjustments | Ending Balance June 30, 2022 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Investor dependent | ( | |||||||||||||||||||||||||||||||||||||
Cash flow dependent and innovation C&I | ( | |||||||||||||||||||||||||||||||||||||
Private bank | ||||||||||||||||||||||||||||||||||||||
CRE | ||||||||||||||||||||||||||||||||||||||
Other C&I | ( | |||||||||||||||||||||||||||||||||||||
Premium wine and other | ( | ( | ||||||||||||||||||||||||||||||||||||
Total ACL | $ | $ | ( | $ | $ | $ | ( | $ |
Three months ended June 30, 2021 | Beginning Balance March 31, 2021 | Charge-offs | Recoveries | Provision (Reduction) for Credit Loss for Loans | Foreign Currency Translation Adjustments | Ending Balance June 30, 2021 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Investor dependent | ( | ( | ||||||||||||||||||||||||||||||||||||
Cash flow dependent and innovation C&I | ( | |||||||||||||||||||||||||||||||||||||
Private bank | ( | |||||||||||||||||||||||||||||||||||||
Premium wine and other | ( | |||||||||||||||||||||||||||||||||||||
Total ACL | $ | $ | ( | $ | $ | $ | $ |
Six months ended June 30, 2022 | Beginning Balance December 31, 2021 | Charge-offs | Recoveries | Provision (Reduction) for Credit Loss for Loans | Foreign Currency Translation Adjustments | Ending Balance June 30, 2022 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Investor dependent | ( | |||||||||||||||||||||||||||||||||||||
Cash flow dependent and innovation C&I | ( | |||||||||||||||||||||||||||||||||||||
Private Bank | ||||||||||||||||||||||||||||||||||||||
CRE | ( | |||||||||||||||||||||||||||||||||||||
Other C&I | ( | |||||||||||||||||||||||||||||||||||||
Premium wine and other | ( | ( | ||||||||||||||||||||||||||||||||||||
Total ACL | $ | $ | ( | $ | $ | $ | ( | $ |
Six months ended June 30, 2021 | Beginning Balance December 31, 2020 | Charge-offs | Recoveries | Provision (Reduction) for Credit Loss for Loans | Foreign Currency Translation Adjustments | Ending Balance June 30, 2021 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Investor dependent | ( | ( | ||||||||||||||||||||||||||||||||||||
Cash flow dependent and innovation C&I | ( | |||||||||||||||||||||||||||||||||||||
Private Bank | ( | ( | ||||||||||||||||||||||||||||||||||||
Premium wine and other | ( | ( | ||||||||||||||||||||||||||||||||||||
PPP | ( | |||||||||||||||||||||||||||||||||||||
Total ACL | $ | $ | ( | $ | $ | $ | $ |
(Dollars in millions) | 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 | |||||||||||||||||||||||||||||||||||||
June 30, 2022: | ||||||||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||||||||
Early stage | ||||||||||||||||||||||||||||||||||||||||||||
Growth stage | ||||||||||||||||||||||||||||||||||||||||||||
Total investor dependent | ||||||||||||||||||||||||||||||||||||||||||||
Cash flow dependent - SLBO | ||||||||||||||||||||||||||||||||||||||||||||
Innovation C&I | ||||||||||||||||||||||||||||||||||||||||||||
Private bank | ||||||||||||||||||||||||||||||||||||||||||||
CRE | ||||||||||||||||||||||||||||||||||||||||||||
Premium wine | ||||||||||||||||||||||||||||||||||||||||||||
Other C&I | ||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||
PPP | ||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||||||||
Early stage | ||||||||||||||||||||||||||||||||||||||||||||
Growth stage | ||||||||||||||||||||||||||||||||||||||||||||
Total investor dependent | ||||||||||||||||||||||||||||||||||||||||||||
Cash flow dependent - SLBO | ||||||||||||||||||||||||||||||||||||||||||||
Innovation C&I | ||||||||||||||||||||||||||||||||||||||||||||
Private bank | ||||||||||||||||||||||||||||||||||||||||||||
CRE | ||||||||||||||||||||||||||||||||||||||||||||
Premium wine | ||||||||||||||||||||||||||||||||||||||||||||
Other C&I | ||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||
PPP | ||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in millions) | Nonaccrual Loans | Nonaccrual Loans with no Allowance for Credit Loss | Nonaccrual Loans | Nonaccrual Loans with no Allowance for Credit Loss | ||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||
Early stage | $ | $ | $ | $ | ||||||||||||||||||||||
Growth stage | ||||||||||||||||||||||||||
Total investor dependent | ||||||||||||||||||||||||||
Cash flow dependent - SLBO | ||||||||||||||||||||||||||
Innovation C&I | ||||||||||||||||||||||||||
Private bank | ||||||||||||||||||||||||||
CRE | ||||||||||||||||||||||||||
Other C&I | ||||||||||||||||||||||||||
PPP | ||||||||||||||||||||||||||
Total nonaccrual loans | $ | $ | $ | $ |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Loans modified in TDRs: | ||||||||||||||
Investor dependent: | ||||||||||||||
Early stage | $ | $ | ||||||||||||
Growth stage | ||||||||||||||
Total investor dependent | ||||||||||||||
Cash flow dependent - SLBO | ||||||||||||||
Private bank | ||||||||||||||
CRE | ||||||||||||||
Other C&I | ||||||||||||||
Total loans modified in TDRs | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Loans modified in TDRs during the period: | ||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||
Early stage | $ | $ | $ | $ | ||||||||||||||||||||||
Growth stage | ||||||||||||||||||||||||||
Total investor dependent | ||||||||||||||||||||||||||
Cash flow dependent - SLBO | ||||||||||||||||||||||||||
Private bank | ||||||||||||||||||||||||||
Total loans modified in TDRs during the period (1) | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
ACL: unfunded credit commitments, beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Provision for (reduction in) credit losses | ( | |||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
ACL: unfunded credit commitments, ending balance (1) | $ | $ | $ | $ |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Gross Amount | Accumulated Amortization | Net Carrying Amount | Gross Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||
Other intangible assets: | ||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||
Total other intangible assets | $ | $ | $ | $ | $ | $ |
Years ended December 31, (Dollars in millions) | Other Intangible Assets | |||||||
2022 (excluding the six months ended June 30, 2022) | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 and thereafter | ||||||||
Total future amortization expense | $ |
June 30, 2022 | ||||||||||||||
(Dollars in millions) | Amortized Cost Basis of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (2) | ||||||||||||
AFS securities (1) | $ | $ | ( |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Notional or Contractual Amount | Fair Value | Notional or Contractual Amount | Fair Value | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Derivative Assets (1) | Derivative Liabilities (1) | Derivative Assets (1) | Derivative Liabilities (1) | ||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Interest rate risks: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps (2) | $ | $ | $ | — | $ | $ | $ | — | ||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | — | ||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | — | ||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||
Equity warrant assets | — | — | ||||||||||||||||||||||||||||||||||||
Contingent conversion rights | — | — | — | — | ||||||||||||||||||||||||||||||||||
Client foreign exchange contracts | — | — | ||||||||||||||||||||||||||||||||||||
Client foreign exchange contracts | — | — | ||||||||||||||||||||||||||||||||||||
Total return swaps | — | — | ||||||||||||||||||||||||||||||||||||
Client foreign currency options | — | — | ||||||||||||||||||||||||||||||||||||
Client foreign currency options | — | — | ||||||||||||||||||||||||||||||||||||
Client interest rate derivatives (2) | — | — | ||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | — | — | ||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
(Dollars in millions) | Statement of income location | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Interest rate risks: | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI into income | Interest income - loans | $ | $ | $ | $ | |||||||||||||||||||||||||||
Change in fair value of interest rate swaps hedging investment securities | Interest income - investment securities taxable | ( | ||||||||||||||||||||||||||||||
Change in fair value of hedged investment securities | Interest income - investment securities taxable | ( | ( | ( | ||||||||||||||||||||||||||||
Net gains associated with interest rate risk derivatives | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||||||||||||||||
(Losses) gains on revaluations of internal foreign currency instruments, net | Other noninterest income | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Gains (losses) on internal foreign exchange forward contracts, net | Other noninterest income | ( | ||||||||||||||||||||||||||||||
Net (losses) gains associated with internal currency risk | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||
Gains (losses) on revaluations of client foreign currency instruments, net | Other noninterest income | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Gains (losses) on client foreign exchange forward contracts, net | Other noninterest income | ( | ( | |||||||||||||||||||||||||||||
Net gains associated with client currency risk | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Gains on total return swaps | Other noninterest income | $ | $ | $ | $ | |||||||||||||||||||||||||||
Net gains on equity warrant assets | Gains on equity warrant assets, net | $ | $ | $ | $ | |||||||||||||||||||||||||||
Net gains (losses) on other derivatives | Other noninterest income | $ | $ | ( | $ | $ |
Gross Amounts of Recognized Assets | Gross Amounts offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position but Subject to Master Netting Arrangements | Net Amount | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | Financial Instruments | Cash Collateral Received (1) | ||||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Total return swaps | ( | |||||||||||||||||||||||||||||||||||||
Foreign currency options | ( | |||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | ( | ( | ||||||||||||||||||||||||||||||||||||
Total derivative assets | ( | ( | ||||||||||||||||||||||||||||||||||||
Reverse repurchase, securities borrowing, and similar arrangements | ( | |||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Foreign exchange contracts | ( | ( | ||||||||||||||||||||||||||||||||||||
Foreign currency options | ( | ( | ||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | ( | ( | ||||||||||||||||||||||||||||||||||||
Total derivative assets | ( | ( | ||||||||||||||||||||||||||||||||||||
Reverse repurchase, securities borrowing, and similar arrangements | ( | |||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ |
Gross Amounts of Recognized Liabilities | Gross Amounts offset in the Statement of Financial Position | Net Amounts of Liabilities Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position but Subject to Master Netting Arrangements | Net Amount | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | Financial Instruments | Cash Collateral Pledged (1) | ||||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Foreign currency options | ( | |||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | ( | ( | ||||||||||||||||||||||||||||||||||||
Total derivative liabilities | ( | ( | ||||||||||||||||||||||||||||||||||||
Repurchase, securities lending, and similar arrangements | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Foreign currency options | ( | |||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | ( | ( | ||||||||||||||||||||||||||||||||||||
Total derivative liabilities | ( | ( | ||||||||||||||||||||||||||||||||||||
Repurchase, securities lending, and similar arrangements | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||
Gains (losses) on investment securities, net | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Gains on equity warrant assets, net | ||||||||||||||||||||||||||
Client investment fees | ||||||||||||||||||||||||||
Wealth management and trust fees | ||||||||||||||||||||||||||
Foreign exchange fees | ||||||||||||||||||||||||||
Credit card fees | ||||||||||||||||||||||||||
Deposit service charges | ||||||||||||||||||||||||||
Lending related fees | ||||||||||||||||||||||||||
Letters of credit and standby letters of credit fees | ||||||||||||||||||||||||||
Investment banking revenue | ||||||||||||||||||||||||||
Commissions | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total noninterest income | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
(Losses) gains on non-marketable and other equity securities, net | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
(Losses) gains on sales of AFS securities, net | ( | |||||||||||||||||||||||||
Total (losses) gains on investment securities, net | $ | ( | $ | $ | ( | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Equity warrant assets: | ||||||||||||||||||||||||||
Gains on exercises, net | $ | $ | $ | $ | ||||||||||||||||||||||
Terminations | ( | ( | ( | ( | ||||||||||||||||||||||
Changes in fair value, net | ||||||||||||||||||||||||||
Total net gains on equity warrant assets | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Client investment fees by type: | ||||||||||||||||||||||||||
Sweep money market fees | $ | $ | $ | $ | ||||||||||||||||||||||
Asset management fees (1) | ||||||||||||||||||||||||||
Repurchase agreement fees | ||||||||||||||||||||||||||
Total client investment fees (2) | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Wealth management and trust fees by type: | ||||||||||||||||||||||||||
Wealth management fees | $ | $ | $ | $ | ||||||||||||||||||||||
Trust fees | ||||||||||||||||||||||||||
Total wealth management and trust fees | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Foreign exchange fees by instrument type: | ||||||||||||||||||||||||||
Foreign exchange contract commissions | $ | $ | $ | $ | ||||||||||||||||||||||
Option premium fees | ||||||||||||||||||||||||||
Total foreign exchange fees | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Credit card fees by instrument type: | ||||||||||||||||||||||||||
Card interchange fees, net | $ | $ | $ | $ | ||||||||||||||||||||||
Merchant service fees | ||||||||||||||||||||||||||
Card service fees | ||||||||||||||||||||||||||
Total credit card fees | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Lending related fees by instrument type: | ||||||||||||||||||||||||||
Unused commitment fees | $ | $ | $ | $ | ||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total lending related fees | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Investment banking revenue: | ||||||||||||||||||||||||||
Underwriting fees | $ | $ | $ | $ | ||||||||||||||||||||||
Advisory fees | ||||||||||||||||||||||||||
Private placements and other | ||||||||||||||||||||||||||
Total investment banking revenue | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Other noninterest income by instrument type: | ||||||||||||||||||||||||||
Fund management fees | $ | $ | $ | $ | ||||||||||||||||||||||
Net gains on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1) | ||||||||||||||||||||||||||
Gains on total return swaps | ||||||||||||||||||||||||||
Other service revenue | ||||||||||||||||||||||||||
Total other noninterest income | $ | $ | $ | $ |
Three months ended June 30, 2022 | Silicon Valley Bank (3) | SVB Private | SVB Capital (3) | SVB Securities (3) | Other Items | Total | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Wealth management and trust fees | ||||||||||||||||||||||||||||||||||||||
Card interchange fees, gross | ||||||||||||||||||||||||||||||||||||||
Merchant service fees | ||||||||||||||||||||||||||||||||||||||
Deposit service charges | ||||||||||||||||||||||||||||||||||||||
Investment banking revenue | ||||||||||||||||||||||||||||||||||||||
Commissions | ||||||||||||||||||||||||||||||||||||||
Fund management fees | ||||||||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Revenues outside the scope of ASC 606 (2) | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total noninterest income | $ | $ | $ | ( | $ | $ | $ |
Three months ended June 30, 2021 | Silicon Valley Bank (3) | SVB Private | SVB Capital (3) | SVB Securities (3) | Other Items | Total | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Card interchange fees, gross | ||||||||||||||||||||||||||||||||||||||
Merchant service fees | ||||||||||||||||||||||||||||||||||||||
Deposit service charges | ||||||||||||||||||||||||||||||||||||||
Investment banking revenue | ||||||||||||||||||||||||||||||||||||||
Commissions | ||||||||||||||||||||||||||||||||||||||
Fund management fees | ||||||||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Revenues outside the scope of ASC 606 (2) | ||||||||||||||||||||||||||||||||||||||
Total noninterest income | $ | $ | $ | $ | $ | $ |
Six months ended June 30, 2022 | Silicon Valley Bank (3) | SVB Private | SVB Capital (3) | SVB Securities (3) | Other Items | Total | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Wealth management and trust fees | ||||||||||||||||||||||||||||||||||||||
Card interchange fees, gross | ||||||||||||||||||||||||||||||||||||||
Merchant service fees | ||||||||||||||||||||||||||||||||||||||
Deposit service charges | ||||||||||||||||||||||||||||||||||||||
Investment banking revenue | ||||||||||||||||||||||||||||||||||||||
Commissions | ||||||||||||||||||||||||||||||||||||||
Fund management fees | ||||||||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Revenues outside the scope of ASC 606 (2) | ( | ( | ||||||||||||||||||||||||||||||||||||
Total noninterest income | $ | $ | $ | ( | $ | $ | $ |
Six months ended June 30, 2021 | Silicon Valley Bank (3) | SVB Private | SVB Capital (3) | SVB Securities (3) | Other Items | Total | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Card interchange fees, gross | ||||||||||||||||||||||||||||||||||||||
Merchant service fees | ||||||||||||||||||||||||||||||||||||||
Deposit service charges | ||||||||||||||||||||||||||||||||||||||
Investment banking revenue | ||||||||||||||||||||||||||||||||||||||
Commissions | ||||||||||||||||||||||||||||||||||||||
Fund management fees | ||||||||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Revenues outside the scope of ASC 606 (2) | ||||||||||||||||||||||||||||||||||||||
Total noninterest income | $ | $ | $ | $ | $ | $ |
(Dollars in millions) | Silicon Valley Bank (1) | SVB Private | SVB Capital (1) | SVB Securities (1) | Other Items (2) | Total | ||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
(Provision for) reduction of credit losses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Noninterest income | ( | |||||||||||||||||||||||||||||||||||||
Noninterest expense (3) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (4) | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||
Total average loans, amortized cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total average assets (5) (6) | ||||||||||||||||||||||||||||||||||||||
Total average deposits | ||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Net interest income (7) | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||||||||
Noninterest expense (3) (7) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Income before income tax expense (4) (7) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total average loans, amortized cost (7) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total average assets (5) (6) (7) | ||||||||||||||||||||||||||||||||||||||
Total average deposits (7) | ||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Noninterest income (losses) | ( | |||||||||||||||||||||||||||||||||||||
Noninterest expense (3) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Income before income tax expense (4) | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||
Total average loans, amortized cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total average assets (5) (6) | ||||||||||||||||||||||||||||||||||||||
Total average deposits | ||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Net interest income (7) | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
(Provision for) reduction of credit losses | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||||||||
Noninterest expense (3) (7) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Income before income tax expense (4) (7) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Total average loans, amortized cost (7) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total average assets (5) (6) (7) | ||||||||||||||||||||||||||||||||||||||
Total average deposits (7) |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Loan commitments (1) | $ | $ | ||||||||||||
Standby letters of credit (2) | ||||||||||||||
Commercial letters of credit (3) | ||||||||||||||
Total unfunded credit commitments | $ | $ | ||||||||||||
Allowance for unfunded credit commitments (4) |
(Dollars in millions) | Expires in One Year or Less | Expires After One Year | Total Amount Outstanding | Maximum Amount of Future Payments | ||||||||||||||||||||||
Financial standby letters of credit | $ | $ | $ | $ | ||||||||||||||||||||||
Performance standby letters of credit | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(Dollars in millions) | SVBFG Capital Commitments | SVBFG Unfunded Commitments | SVBFG Ownership of each Fund | |||||||||||||||||
Redwood Evergreen Fund, LP | $ | $ | % | |||||||||||||||||
CP II, LP (1) | ||||||||||||||||||||
Capital Preferred Return Fund, LP | ||||||||||||||||||||
Growth Partners, LP | ||||||||||||||||||||
Strategic Investors Fund, LP | ||||||||||||||||||||
Strategic Investors Fund II, LP | ||||||||||||||||||||
Strategic Investors Fund III, LP | ||||||||||||||||||||
Strategic Investors Fund IV, LP | ||||||||||||||||||||
Strategic Investors Fund V funds | Various | |||||||||||||||||||
Other venture capital and private equity fund investments (equity method accounting) | Various | |||||||||||||||||||
Debt funds (equity method accounting) | Various | |||||||||||||||||||
Other fund investments (2) | Various | |||||||||||||||||||
Total | $ | $ |
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Balance at June 30, 2022 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
AFS securities: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | ||||||||||||||||||||||
U.S. agency debentures | ||||||||||||||||||||||||||
Foreign government debt securities | ||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||
Agency-issued MBS | ||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ||||||||||||||||||||||||||
Agency-issued CMBS | ||||||||||||||||||||||||||
Total AFS securities | ||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||
Non-marketable securities: | ||||||||||||||||||||||||||
Venture capital and private equity fund investments measured at net asset value | — | — | — | |||||||||||||||||||||||
Other equity securities in public companies | ||||||||||||||||||||||||||
Total non-marketable and other equity securities (fair value accounting) | ||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Total return swaps | ||||||||||||||||||||||||||
Equity warrant assets | ||||||||||||||||||||||||||
Contingent conversion rights | ||||||||||||||||||||||||||
Client interest rate derivatives | ||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Foreign exchange contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Client interest rate derivatives | ||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Balance at December 31, 2021 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
AFS securities: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | ||||||||||||||||||||||
U.S. agency debentures | ||||||||||||||||||||||||||
Foreign government debt securities | ||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||
Agency-issued MBS | ||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | ||||||||||||||||||||||||||
Agency-issued CMBS | ||||||||||||||||||||||||||
Total AFS securities | ||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||
Non-marketable securities: | ||||||||||||||||||||||||||
Venture capital and private equity fund investments measured at net asset value | — | — | — | |||||||||||||||||||||||
Other equity securities in public companies | ||||||||||||||||||||||||||
Total non-marketable and other equity securities (fair value accounting) | ||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Equity warrant assets | ||||||||||||||||||||||||||
Interest rate swaps | ||||||||||||||||||||||||||
Client interest rate derivatives | ||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Foreign exchange contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Client interest rate derivatives | ||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
(Dollars in millions) | Beginning Balance | Total Net Gains Included in Net Income | Sales/Exits | Issuances | Transfers Out of Level 3 | Ending Balance | ||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Equity warrant assets (1) | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||
Contingent conversion rights (2) | ( | |||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Equity warrant assets (1) | ( | |||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Equity warrant assets (1) | ( | ( | ||||||||||||||||||||||||||||||||||||
Contingent conversion rights (2) | ( | |||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Equity warrant assets (1) | ( | ( | ||||||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||
Equity warrant assets (1) | $ | $ | $ | $ | ||||||||||||||||||||||
Contingent conversion rights (2) | ( | ( | ||||||||||||||||||||||||
Total unrealized gains, net | $ | $ | $ | $ | ||||||||||||||||||||||
(Dollars in millions) | Fair value | Valuation Technique | Significant Unobservable Inputs | Input Range | Weighted Average | |||||||||||||||||||||||||||
June 30, 2022: | ||||||||||||||||||||||||||||||||
Equity warrant assets (private portfolio) | Black-Scholes option pricing model | Volatility | ||||||||||||||||||||||||||||||
Risk-Free interest rate | ||||||||||||||||||||||||||||||||
Marketability discount (2) | ||||||||||||||||||||||||||||||||
Remaining life assumption (3) | ||||||||||||||||||||||||||||||||
Contingent conversion rights (private portfolio) | Private company equity pricing | (4) | (4) | (4) | ||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||
Equity warrant assets (public portfolio) | Black-Scholes option pricing model | Volatility | % | |||||||||||||||||||||||||||||
Risk-Free interest rate | ||||||||||||||||||||||||||||||||
Sales restrictions discount (1) | ||||||||||||||||||||||||||||||||
Equity warrant assets (private portfolio) | Black-Scholes option pricing model | Volatility | ||||||||||||||||||||||||||||||
Risk-Free interest rate | ||||||||||||||||||||||||||||||||
Marketability discount (2) | ||||||||||||||||||||||||||||||||
Remaining life assumption (3) |
Estimated Fair Value | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
June 30, 2022: | ||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
HTM securities | ||||||||||||||||||||||||||||||||
Non-marketable securities not measured at net asset value | ||||||||||||||||||||||||||||||||
Non-marketable securities measured at net asset value | ||||||||||||||||||||||||||||||||
Net loans | ||||||||||||||||||||||||||||||||
FHLB and Federal Reserve Bank stock | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||||||
Non-maturity deposits (1) | ||||||||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||
3.50% Senior Notes | ||||||||||||||||||||||||||||||||
3.125% Senior Notes | ||||||||||||||||||||||||||||||||
1.800% Senior Notes due 2031 | ||||||||||||||||||||||||||||||||
2.100% Senior Notes due 2028 | ||||||||||||||||||||||||||||||||
1.800% Senior Notes due 2026 | ||||||||||||||||||||||||||||||||
4.345% Senior Notes due 2028 | ||||||||||||||||||||||||||||||||
4.570% Senior Notes due 2033 | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | ||||||||||||||||||||||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||||||||||||||||||
Commitments to extend credit | ||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
HTM securities | ||||||||||||||||||||||||||||||||
Non-marketable securities not measured at net asset value | ||||||||||||||||||||||||||||||||
Non-marketable securities measured at net asset value | ||||||||||||||||||||||||||||||||
Net loans | ||||||||||||||||||||||||||||||||
FHLB and Federal Reserve Bank stock | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||||||
Non-maturity deposits (1) | ||||||||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||
3.50% Senior Notes | ||||||||||||||||||||||||||||||||
3.125% Senior Notes | ||||||||||||||||||||||||||||||||
1.800% Senior Notes due 2031 | ||||||||||||||||||||||||||||||||
2.100% Senior Notes due 2028 | ||||||||||||||||||||||||||||||||
1.800% Senior Notes due 2026 | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | ||||||||||||||||||||||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||||||||||||||||||
Commitments to extend credit |
(Dollars in millions) | Carrying Amount | Fair Value | Unfunded Commitments | |||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||
Venture capital and private equity fund investments (1) | $ | $ | $ | |||||||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||||||
Venture capital and private equity fund investments (2) | ||||||||||||||||||||
Debt funds (2) | ||||||||||||||||||||
Other investments (2) | ||||||||||||||||||||
Total | $ | $ | $ |
Page Number | ||||||||
BALANCE SHEET | EARNINGS | |||||||
Assets. $218.0 billion in average total assets (up 44.6%). $214.4 billion in period-end total assets (up 31.2%). Loans. $69.3 billion in average total loan balances (up 39.0%). $71.0 billion in period-end total loan balances (up 39.8%). Total Client Funds. (on-balance sheet deposits and off-balance sheet client investment funds). $386.7 billion in average total client fund balances (up 25.5%). $379.2 billion in period-end total client fund balances (up 15.3%). AFS/HTM Fixed Income Investments. $126.7 billion in average fixed income investment securities (up 75.2%). $122.0 billion in period-end fixed income investment securities (up 45.5%). | EPS. Earnings per diluted share of $5.60 (down 38.4%). Net Income. Consolidated net income available to common stockholders of $333 million (down 33.7%). -Net interest income of $1.2 billion (up 60.3%). -Net interest margin of 2.24% (up 18 bps). -Noninterest income of $362 million (down 52.4%), non-GAAP core fee income+ of $286 million (up 66.3%) and non-GAAP SVB Securities revenue++ of $149 million (up 24.2%). -Noninterest expense of $848 million (up 29.9%). Return on Average Equity. Return on average equity (annualized) performance of 10.87%. Operating Efficiency Ratio. Operating efficiency ratio of 55.46%. | |||||||
CAPITAL | CREDIT QUALITY | |||||||
Capital+++. Active capital management, with all capital ratios considered “well-capitalized” under banking regulations. SVB Financial and Bank capital ratios, respectively, were: -CET1 risk-based capital ratio of 11.98% and 15.39%. -Tier 1 risk-based capital ratio of 15.57% and 15.39%. -Total risk-based capital ratio of 16.22% and 16.05%. -Tier 1 leverage ratio of 7.73% and 7.55%. | Credit Quality. Reserve build due to uncertain market environment; net loan charge-offs and nonperforming loans remained low. -ACL for loans of 0.77% as a percentage of period-end total loans. -Provision for loans was 0.83% as a percentage of period-end total loans (annualized). -Net loan charge-offs of 0.12% as a percentage of average total loans (annualized). |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data, employees and ratios) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Income Statement: | ||||||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 5.60 | $ | 9.09 | (38.4) | % | $ | 13.52 | $ | 19.10 | (29.2) | % | ||||||||||||||||||||||||||
Net income available to common stockholders | 333 | 502 | (33.7) | 805 | 1,034 | (22.1) | ||||||||||||||||||||||||||||||||
Net interest income | 1,167 | 728 | 60.3 | 2,249 | 1,388 | 62.0 | ||||||||||||||||||||||||||||||||
Net interest margin | 2.24 | % | 2.06 | % | 18 | bps | 2.19 | % | 2.16 | % | 3 | bps | ||||||||||||||||||||||||||
Provision for credit losses (1) | 196 | 35 | 460.0 | % | 207 | 54 | 283.3 | % | ||||||||||||||||||||||||||||||
Noninterest income | 362 | 761 | (52.4) | 879 | 1,505 | (41.6) | ||||||||||||||||||||||||||||||||
Noninterest expense | 848 | 653 | 29.9 | 1,721 | 1,289 | 33.5 | ||||||||||||||||||||||||||||||||
Non-GAAP core fee income (2) | 286 | 172 | 66.3 | 516 | 331 | 55.9 | ||||||||||||||||||||||||||||||||
Non-GAAP core fee income, plus SVB Securities revenue (2) | 435 | 292 | 49.0 | 783 | 617 | 26.9 | ||||||||||||||||||||||||||||||||
Balance Sheet: | ||||||||||||||||||||||||||||||||||||||
Average AFS securities | $ | 29,922 | $ | 24,358 | 22.8 | % | $ | 28,442 | $ | 26,292 | 8.2 | % | ||||||||||||||||||||||||||
Average HTM securities | 96,732 | 47,914 | 101.9 | 97,698 | 36,667 | 166.4 | ||||||||||||||||||||||||||||||||
Average loans, amortized cost | 69,263 | 49,812 | 39.0 | 68,172 | 48,056 | 41.9 | ||||||||||||||||||||||||||||||||
Average noninterest-bearing demand deposits | 120,679 | 91,530 | 31.8 | 123,110 | 82,432 | 49.3 | ||||||||||||||||||||||||||||||||
Average interest-bearing deposits | 71,388 | 42,230 | 69.0 | 68,286 | 39,816 | 71.5 | ||||||||||||||||||||||||||||||||
Average total deposits | 192,067 | 133,760 | 43.6 | 191,396 | 122,248 | 56.6 | ||||||||||||||||||||||||||||||||
Earnings Ratios: | ||||||||||||||||||||||||||||||||||||||
Return on average assets (annualized) (3) | 0.61 | % | 1.34 | % | (54.5) | % | 0.75 | % | 1.51 | % | (50.3) | % | ||||||||||||||||||||||||||
Return on average SVBFG stockholders’ equity (annualized) (4) | 10.87 | 21.69 | (49.9) | 13.08 | 24.14 | (45.8) | ||||||||||||||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||||||||
ACL for loans as a % of total period-end loans | 0.77 | % | 0.78 | % | (1) | bps | 0.77 | % | 0.78 | % | (1) | bps | ||||||||||||||||||||||||||
ACL for performing loans as a % of total performing loans | 0.72 | 0.71 | 1 | 0.72 | 0.71 | 1 | ||||||||||||||||||||||||||||||||
Gross loan charge-offs as a % of average total loans (annualized) (1) | 0.13 | 0.12 | 1 | 0.12 | 0.46 | (34) | ||||||||||||||||||||||||||||||||
Net loan charge-offs as a % of average total loans (annualized) (1) | 0.12 | 0.10 | 2 | 0.08 | 0.43 | (35) | ||||||||||||||||||||||||||||||||
Capital Ratios: | ||||||||||||||||||||||||||||||||||||||
SVBFG CET1 risk-based capital ratio | 11.98 | % | 11.93 | % | 5 | bps | 11.98 | % | 11.93 | % | 5 | bps | ||||||||||||||||||||||||||
SVBFG tier 1 risk-based capital ratio | 15.57 | 14.95 | 62 | 15.57 | 14.95 | 62 | ||||||||||||||||||||||||||||||||
SVBFG total risk-based capital ratio | 16.22 | 15.53 | 69 | 16.22 | 15.53 | 69 | ||||||||||||||||||||||||||||||||
SVBFG tier 1 leverage ratio | 7.73 | 7.77 | (4) | 7.73 | 7.77 | (4) | ||||||||||||||||||||||||||||||||
SVBFG tangible common equity to tangible assets (5) | 5.50 | 5.76 | (26) | 5.50 | 5.76 | (26) | ||||||||||||||||||||||||||||||||
SVBFG tangible common equity to risk-weighted assets (5) | 10.84 | 12.02 | (118) | 10.84 | 12.02 | (118) | ||||||||||||||||||||||||||||||||
Bank CET1 risk-based capital ratio | 15.39 | 13.66 | 173 | 15.39 | 13.66 | 173 | ||||||||||||||||||||||||||||||||
Bank tier 1 risk-based capital ratio | 15.39 | 13.66 | 173 | 15.39 | 13.66 | 173 | ||||||||||||||||||||||||||||||||
Bank total risk-based capital ratio | 16.05 | 14.26 | 179 | 16.05 | 14.26 | 179 | ||||||||||||||||||||||||||||||||
Bank tier 1 leverage ratio | 7.55 | 6.96 | 59 | 7.55 | 6.96 | 59 | ||||||||||||||||||||||||||||||||
Bank tangible common equity to tangible assets (5) | 7.15 | 6.47 | 68 | 7.15 | 6.47 | 68 | ||||||||||||||||||||||||||||||||
Bank tangible common equity to risk-weighted assets (5) | 14.23 | 13.76 | 47 | 14.23 | 13.76 | 47 | ||||||||||||||||||||||||||||||||
Other Ratios: | ||||||||||||||||||||||||||||||||||||||
Operating efficiency ratio (6) | 55.46 | % | 43.85 | % | 26.5 | % | 55.02 | % | 44.56 | % | 23.5 | % | ||||||||||||||||||||||||||
Total costs of deposits (annualized) (7) | 0.16 | 0.04 | 300.0 | 0.10 | 0.04 | 150.0 | ||||||||||||||||||||||||||||||||
Book value per common share (8) | $ | 207.71 | $ | 176.10 | 18.0 | $ | 207.71 | $ | 176.10 | 18.0 | ||||||||||||||||||||||||||||
Tangible book value per common share (9) | 199.27 | 172.44 | 15.6 | 199.27 | 172.44 | 15.6 | ||||||||||||||||||||||||||||||||
Other Statistics: | ||||||||||||||||||||||||||||||||||||||
Average full-time equivalent employees | 7,528 | 4,808 | 56.6 | % | 7,251 | 4,705 | 54.1 | % | ||||||||||||||||||||||||||||||
Period-end full-time equivalent employees | 7,743 | 4,932 | 57.0 | 7,743 | 4,932 | 57.0 |
2022 Compared to 2021 | 2022 Compared to 2021 | |||||||||||||||||||||||||||||||||||||
Three months ended June 30, increase (decrease) due to change in | Six months ended June 30, increase (decrease) due to change in | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities | $ | (10) | $ | 29 | $ | 19 | $ | (10) | $ | 32 | $ | 22 | ||||||||||||||||||||||||||
Fixed income investment portfolio (taxable) | 256 | 55 | 311 | 541 | 57 | 598 | ||||||||||||||||||||||||||||||||
Fixed income investment portfolio (non-taxable) | 16 | (2) | 14 | 36 | (4) | 32 | ||||||||||||||||||||||||||||||||
Loans, amortized cost | 154 | 28 | 182 | 309 | 12 | 321 | ||||||||||||||||||||||||||||||||
Increase in interest income, net | 416 | 110 | 526 | 876 | 97 | 973 | ||||||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||||||||
Interest bearing checking and savings accounts | 18 | 5 | 23 | 15 | 8 | 23 | ||||||||||||||||||||||||||||||||
Money market deposits | 16 | 19 | 35 | 25 | 20 | 45 | ||||||||||||||||||||||||||||||||
Money market deposits in foreign offices | 1 | — | 1 | — | 1 | 1 | ||||||||||||||||||||||||||||||||
Time deposits | 5 | 1 | 6 | 7 | 1 | 8 | ||||||||||||||||||||||||||||||||
Total increase in deposits expense | 40 | 25 | 65 | 47 | 30 | 77 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 8 | — | 8 | 9 | — | 9 | ||||||||||||||||||||||||||||||||
Long term debt | 10 | 1 | 11 | 20 | (1) | 19 | ||||||||||||||||||||||||||||||||
Total increase (decrease) in borrowings expense | 18 | 1 | 19 | 29 | (1) | 28 | ||||||||||||||||||||||||||||||||
Increase in interest expense, net | 58 | 26 | 84 | 76 | 29 | 105 | ||||||||||||||||||||||||||||||||
Increase in net interest income | $ | 358 | $ | 84 | $ | 442 | $ | 800 | $ | 68 | $ | 868 |
Three months ended June 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1) | $ | 14,799 | $ | 23 | 0.63 | % | $ | 21,069 | $ | 4 | 0.08 | % | ||||||||||||||||||||||||||
Investment securities: (2) | ||||||||||||||||||||||||||||||||||||||
AFS securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 29,922 | 122 | 1.63 | 24,358 | 73 | 1.20 | ||||||||||||||||||||||||||||||||
HTM securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 89,698 | 440 | 1.97 | 43,352 | 178 | 1.65 | ||||||||||||||||||||||||||||||||
Non-taxable (3) | 7,034 | 45 | 2.54 | 4,562 | 31 | 2.73 | ||||||||||||||||||||||||||||||||
Total loans, amortized cost (4) (5) | 69,263 | 654 | 3.78 | 49,812 | 472 | 3.80 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | 210,716 | 1,284 | 2.44 | 143,153 | 758 | 2.12 | ||||||||||||||||||||||||||||||||
Cash and due from banks | 2,500 | 2,108 | ||||||||||||||||||||||||||||||||||||
ACL | (442) | (411) | ||||||||||||||||||||||||||||||||||||
Other assets (6) | 5,224 | 5,867 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 217,998 | $ | 150,717 | ||||||||||||||||||||||||||||||||||
Funding sources: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 11,928 | $ | 24 | 0.79 | % | $ | 3,096 | $ | 1 | 0.11 | % | ||||||||||||||||||||||||||
Money market deposits | 54,525 | 45 | 0.33 | 36,452 | 10 | 0.11 | ||||||||||||||||||||||||||||||||
Money market deposits in foreign offices | 1,163 | 1 | 0.26 | 787 | — | 0.01 | ||||||||||||||||||||||||||||||||
Time deposits | 2,722 | 7 | 1.10 | 631 | 1 | 0.37 | ||||||||||||||||||||||||||||||||
Sweep deposits in foreign offices | 1,050 | — | 0.03 | 1,264 | — | 0.01 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 71,388 | 77 | 0.43 | 42,230 | 12 | 0.11 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 3,607 | 8 | 0.85 | 39 | — | 0.19 | ||||||||||||||||||||||||||||||||
Long-term debt | 3,122 | 22 | 2.91 | 1,604 | 11 | 2.75 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 78,117 | 107 | 0.55 | 43,873 | 23 | 0.21 | ||||||||||||||||||||||||||||||||
Portion of noninterest-bearing funding sources | 132,599 | 99,280 | ||||||||||||||||||||||||||||||||||||
Total funding sources | 210,716 | 107 | 0.20 | 143,153 | 23 | 0.06 | ||||||||||||||||||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 120,679 | 91,530 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 2,894 | 4,200 | ||||||||||||||||||||||||||||||||||||
Preferred stock | 3,646 | 1,610 | ||||||||||||||||||||||||||||||||||||
SVBFG common stockholders’ equity | 12,286 | 9,283 | ||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 376 | 221 | ||||||||||||||||||||||||||||||||||||
Portion used to fund interest-earning assets | (132,599) | (99,280) | ||||||||||||||||||||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 217,998 | $ | 150,717 | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 1,177 | 2.24 | % | $ | 735 | 2.06 | % | ||||||||||||||||||||||||||||||
Total deposits | $ | 192,067 | $ | 133,760 | ||||||||||||||||||||||||||||||||||
Average SVBFG common stockholders’ equity as a percentage of average assets | 5.64 | % | 6.16 | % | ||||||||||||||||||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | (10) | (7) | ||||||||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 1,167 | $ | 728 |
Six months ended | ||||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1) | $ | 14,800 | $ | 29 | 0.40 | % | $ | 19,635 | $ | 7 | 0.07 | % | ||||||||||||||||||||||||||
Investment securities: (2) | ||||||||||||||||||||||||||||||||||||||
AFS securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 28,442 | 208 | 1.48 | 26,292 | 197 | 1.51 | ||||||||||||||||||||||||||||||||
HTM securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 90,722 | 865 | 1.92 | 32,531 | 278 | 1.72 | ||||||||||||||||||||||||||||||||
Non-taxable (3) | 6,976 | 89 | 2.56 | 4,136 | 57 | 2.78 | ||||||||||||||||||||||||||||||||
Total loans, amortized cost (4) (5) | 68,172 | 1,224 | 3.62 | 48,056 | 903 | 3.79 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | 209,112 | 2,415 | 2.33 | 130,650 | 1,442 | 2.22 | ||||||||||||||||||||||||||||||||
Cash and due from banks | 2,985 | 1,823 | ||||||||||||||||||||||||||||||||||||
ACL | (437) | (448) | ||||||||||||||||||||||||||||||||||||
Other assets (6) | 5,378 | 5,812 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 217,038 | $ | 137,837 | ||||||||||||||||||||||||||||||||||
Funding sources: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 9,009 | $ | 25 | 0.55 | % | $ | 3,377 | $ | 2 | 0.10 | % | ||||||||||||||||||||||||||
Money market deposits | 54,842 | 64 | 0.23 | 33,721 | 19 | 0.11 | ||||||||||||||||||||||||||||||||
Money market deposits in foreign offices | 971 | 1 | 0.17 | 830 | — | 0.04 | ||||||||||||||||||||||||||||||||
Time deposits | 2,421 | 9 | 0.79 | 644 | 1 | 0.35 | ||||||||||||||||||||||||||||||||
Sweep deposits in foreign offices | 1,043 | — | 0.02 | 1,244 | — | 0.02 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 68,286 | 99 | 0.29 | 39,816 | 22 | 0.11 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 3,373 | 9 | 0.54 | 26 | — | 0.16 | ||||||||||||||||||||||||||||||||
Long-term debt | 2,847 | 39 | 2.75 | 1,384 | 20 | 2.91 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 74,506 | 147 | 0.40 | 41,226 | 42 | 0.21 | ||||||||||||||||||||||||||||||||
Portion of noninterest-bearing funding sources | 134,606 | 89,424 | ||||||||||||||||||||||||||||||||||||
Total funding sources | 209,112 | 147 | 0.14 | 130,650 | 42 | 0.06 | ||||||||||||||||||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 123,110 | 82,432 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 2,996 | 4,111 | ||||||||||||||||||||||||||||||||||||
Preferred stock | 3,646 | 1,216 | ||||||||||||||||||||||||||||||||||||
SVBFG common stockholders’ equity | 12,408 | 8,636 | ||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 372 | 216 | ||||||||||||||||||||||||||||||||||||
Portion used to fund interest-earning assets | (134,606) | (89,424) | ||||||||||||||||||||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 217,038 | $ | 137,837 | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 2,268 | 2.19 | % | $ | 1,400 | 2.16 | % | ||||||||||||||||||||||||||||||
Total deposits | $ | 191,396 | $ | 122,248 | ||||||||||||||||||||||||||||||||||
Average SVBFG common stockholders’ equity as a percentage of average assets | 5.72 | % | 6.27 | % | ||||||||||||||||||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | (19) | (12) | ||||||||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 2,249 | $ | 1,388 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
ACL, beginning balance | $ | 421 | $ | 392 | $ | 422 | $ | 448 | ||||||||||||||||||
Provision for loans (1) | 146 | 16 | 154 | 50 | ||||||||||||||||||||||
Gross loan charge-offs (1) | (22) | (15) | (40) | (110) | ||||||||||||||||||||||
Loan recoveries | 2 | 3 | 12 | 8 | ||||||||||||||||||||||
Foreign currency translation adjustments | (2) | — | (3) | — | ||||||||||||||||||||||
ACL, ending balance | $ | 545 | $ | 396 | $ | 545 | $ | 396 | ||||||||||||||||||
ACL for unfunded credit commitments, beginning balance | 175 | 105 | 171 | 121 | ||||||||||||||||||||||
Provision (reduction) for unfunded credit commitments | 50 | 15 | 54 | (1) | ||||||||||||||||||||||
Foreign currency translation adjustments | (1) | — | (1) | — | ||||||||||||||||||||||
ACL for unfunded credit commitments, ending balance (2) | $ | 224 | $ | 120 | $ | 224 | $ | 120 | ||||||||||||||||||
ACL for HTM securities, beginning balance | 6 | 1 | 7 | — | ||||||||||||||||||||||
(Reduction) provision for HTM securities | — | 4 | (1) | 5 | ||||||||||||||||||||||
ACL for HTM securities, ending balance (3) | $ | 6 | $ | 5 | $ | 6 | $ | 5 | ||||||||||||||||||
Ratios and other information: | ||||||||||||||||||||||||||
Provision for loans as a percentage of period-end total loans (annualized) (1) | 0.83 | % | 0.13 | % | 0.44 | % | 0.20 | % | ||||||||||||||||||
Gross loan charge-offs as a percentage of average total loans (annualized) (1) | 0.13 | 0.12 | 0.12 | 0.46 | ||||||||||||||||||||||
Net loan charge-offs as a percentage of average total loans (annualized) (1) | 0.12 | 0.10 | 0.08 | 0.43 | ||||||||||||||||||||||
ACL for loans as a percentage of period-end total loans | 0.77 | 0.78 | 0.77 | 0.78 | ||||||||||||||||||||||
Provision for credit losses | $ | 196 | $ | 35 | $ | 207 | $ | 54 | ||||||||||||||||||
Period-end total loans | 70,955 | 50,754 | 70,955 | 50,754 | ||||||||||||||||||||||
Average total loans | 69,263 | 49,812 | 68,172 | 48,056 | ||||||||||||||||||||||
Allowance for loan losses for nonaccrual loans | 36 | 38 | 36 | 38 | ||||||||||||||||||||||
Nonaccrual loans | 93 | 79 | 93 | 79 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
GAAP noninterest income | $ | 362 | $ | 761 | (52.4) | % | $ | 879 | $ | 1,505 | (41.6) | % | ||||||||||||||||||||||||||
Less: gains (losses) on investment securities, net | (157) | 305 | (151.5) | (72) | 472 | (115.3) | ||||||||||||||||||||||||||||||||
Less: gains on equity warrant assets, net | 17 | 122 | (86.1) | 80 | 344 | (76.7) | ||||||||||||||||||||||||||||||||
Less: other noninterest income | 67 | 42 | 59.5 | 88 | 72 | 22.2 | ||||||||||||||||||||||||||||||||
Non-GAAP core fee income plus SVB Securities revenue (1) | $ | 435 | $ | 292 | 49.0 | $ | 783 | $ | 617 | 26.9 | ||||||||||||||||||||||||||||
Investment banking revenue | 125 | 103 | 21.4 | 218 | 245 | (11.0) | ||||||||||||||||||||||||||||||||
Commissions | 24 | 17 | 41.2 | 49 | 41 | 19.5 | ||||||||||||||||||||||||||||||||
Non-GAAP SVB Securities revenue (2) | $ | 149 | $ | 120 | 24.2 | $ | 267 | $ | 286 | (6.6) | ||||||||||||||||||||||||||||
Non-GAAP core fee income (3) | $ | 286 | $ | 172 | 66.3 | $ | 516 | $ | 331 | 55.9 |
(Dollars in millions) | Managed Funds of Funds | Managed Direct Venture Funds | Managed Credit Funds | Public Equity Securities | Debt Funds | Sales of AFS Debt Securities | Strategic and Other Investments | SVB Securities | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | (83) | $ | — | $ | 3 | $ | (6) | $ | — | $ | (1) | $ | (46) | $ | (24) | $ | (157) | ||||||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | (19) | 2 | — | — | — | — | — | (3) | (20) | |||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | (64) | $ | (2) | $ | 3 | $ | (6) | $ | — | $ | (1) | $ | (46) | $ | (21) | $ | (137) | ||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains on investment securities, net | $ | 197 | $ | 19 | $ | 6 | $ | 16 | $ | 1 | $ | — | $ | 22 | $ | 44 | $ | 305 | ||||||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 87 | 8 | 1 | — | — | — | — | 17 | 113 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests | $ | 110 | $ | 11 | $ | 5 | $ | 16 | $ | 1 | $ | — | $ | 22 | $ | 27 | $ | 192 | ||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | (37) | $ | 15 | $ | 9 | $ | (38) | $ | — | $ | 48 | $ | (44) | $ | (25) | $ | (72) | ||||||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | (4) | 4 | 1 | — | — | — | — | (3) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests | $ | (33) | $ | 11 | $ | 8 | $ | (38) | $ | — | $ | 48 | $ | (44) | $ | (22) | $ | (70) | ||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains on investment securities, net | $ | 228 | $ | 37 | $ | 13 | $ | 88 | $ | 2 | $ | — | $ | 56 | $ | 48 | $ | 472 | ||||||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 100 | 17 | 2 | — | — | — | — | 19 | 138 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests | $ | 128 | $ | 20 | $ | 11 | $ | 88 | $ | 2 | $ | — | $ | 56 | $ | 29 | $ | 334 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Equity warrant assets (1): | ||||||||||||||||||||||||||||||||||||||
Gains on exercises, net | $ | 9 | $ | 78 | (88.5) | % | $ | 28 | $ | 251 | (88.8) | % | ||||||||||||||||||||||||||
Terminations | (1) | (1) | — | (2) | (1) | 100.0 | ||||||||||||||||||||||||||||||||
Changes in fair value, net | 9 | 45 | (80.0) | 54 | 94 | (42.6) | ||||||||||||||||||||||||||||||||
Total gains on equity warrant assets, net | $ | 17 | $ | 122 | (86.1) | $ | 80 | $ | 344 | (76.7) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Non-GAAP core fee income (1): | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | 83 | $ | 15 | NM | $ | 118 | $ | 35 | NM | ||||||||||||||||||||||||||||
Wealth management and trust fees | 22 | — | — | 44 | — | — | ||||||||||||||||||||||||||||||||
Foreign exchange fees | 69 | 67 | 3.0 | 142 | 124 | 14.5 | ||||||||||||||||||||||||||||||||
Credit card fees | 40 | 31 | 29.0 | 77 | 59 | 30.5 | ||||||||||||||||||||||||||||||||
Deposit service charges | 32 | 28 | 14.3 | 62 | 53 | 17.0 | ||||||||||||||||||||||||||||||||
Lending related fees | 26 | 18 | 44.4 | 45 | 34 | 32.4 | ||||||||||||||||||||||||||||||||
Letters of credit and standby letters of credit fees | 14 | 13 | 7.7 | 28 | 26 | 7.7 | ||||||||||||||||||||||||||||||||
Total non-GAAP core fee income (1) | $ | 286 | $ | 172 | 66.3 | $ | 516 | $ | 331 | 55.9 | ||||||||||||||||||||||||||||
Investment banking revenue | 125 | 103 | 21.4 | 218 | 245 | (11.0) | ||||||||||||||||||||||||||||||||
Commissions | 24 | 17 | 41.2 | 49 | 41 | 19.5 | ||||||||||||||||||||||||||||||||
Total non-GAAP Securities revenue (2) | $ | 149 | $ | 120 | 24.2 | $ | 267 | $ | 286 | (6.6) | ||||||||||||||||||||||||||||
Total non-GAAP core fee income plus SVB Securities revenue (3) | $ | 435 | $ | 292 | 49.0 | $ | 783 | $ | 617 | 26.9 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Client investment fees by type: | ||||||||||||||||||||||||||||||||||||||
Sweep money market fees | $ | 56 | $ | 7 | NM | $ | 80 | $ | 18 | NM | ||||||||||||||||||||||||||||
Asset management fees | 15 | 8 | 87.5 | 25 | 16 | 56.3 | ||||||||||||||||||||||||||||||||
Repurchase agreement fees | 12 | — | — | 13 | 1 | NM | ||||||||||||||||||||||||||||||||
Total client investment fees | $ | 83 | $ | 15 | NM | $ | 118 | $ | 35 | NM |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Sweep money market funds | $ | 95,178 | $ | 82,573 | 15.3 | % | $ | 102,147 | $ | 74,856 | 36.5 | % | ||||||||||||||||||||||||||
Managed client investment funds (1) | 85,292 | 77,733 | 9.7 | 84,879 | 75,106 | 13.0 | ||||||||||||||||||||||||||||||||
Repurchase agreements | 14,167 | 14,021 | 1.0 | 13,362 | 12,992 | 2.8 | ||||||||||||||||||||||||||||||||
Total average client investment funds (2) | $ | 194,637 | $ | 174,327 | 11.7 | $ | 200,388 | $ | 162,954 | 23.0 |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | % Change | |||||||||||||||||
Sweep money market funds | $ | 89,544 | $ | 109,241 | (18.0) | % | ||||||||||||||
Managed client investment funds (1) | 86,849 | 85,475 | 1.6 | |||||||||||||||||
Repurchase agreements | 14,851 | 15,370 | (3.4) | |||||||||||||||||
Total period-end client investment funds (2) | $ | 191,244 | $ | 210,086 | (9.0) |
Three months ended June 30 | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||
Wealth management and trust fees by type: | |||||||||||||||||||||||||||||||||||
Wealth management fees | $ | 20 | $ | — | — | % | $ | 40 | $ | — | — | % | |||||||||||||||||||||||
Trust fees | 2 | — | — | 4 | — | — | |||||||||||||||||||||||||||||
Total wealth management and trust fees | $ | 22 | $ | — | — | $ | 44 | $ | — | — |
Three months ended | Six months ended | |||||||||||||
(Dollars in millions) | June 30, 2022 | June 30, 2022 | ||||||||||||
Beginning balance | $ | 19,008 | $ | 19,646 | ||||||||||
Net flows | (539) | (275) | ||||||||||||
Market returns | (1,957) | (2,859) | ||||||||||||
Ending balance | $ | 16,512 | $ | 16,512 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Foreign exchange fees by instrument type: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contract commissions | $ | 69 | $ | 66 | 4.5 | % | $ | 141 | $ | 123 | 14.6 | % | ||||||||||||||||||||||||||
Option premium fees | — | 1 | — | 1 | 1 | — | ||||||||||||||||||||||||||||||||
Total foreign exchange fees | $ | 69 | $ | 67 | 3.0 | $ | 142 | $ | 124 | 14.5 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Credit card fees by instrument type: | ||||||||||||||||||||||||||||||||||||||
Card interchange fees, net | $ | 32 | $ | 26 | 23.1 | % | $ | 62 | $ | 49 | 26.5 | % | ||||||||||||||||||||||||||
Merchant service fees | 6 | 4 | 50.0 | 11 | 8 | 37.5 | ||||||||||||||||||||||||||||||||
Card service fees | 2 | 1 | 100.0 | 4 | 2 | 100.0 | ||||||||||||||||||||||||||||||||
Total credit card fees | $ | 40 | $ | 31 | 29.0 | $ | 77 | $ | 59 | 30.5 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Lending related fees by instrument type: | ||||||||||||||||||||||||||||||||||||||
Unused commitment fees | $ | 20 | $ | 15 | 33.3 | % | $ | 35 | $ | 28 | 25.0 | % | ||||||||||||||||||||||||||
Other | 6 | 3 | 100.0 | 10 | 6 | 66.7 | ||||||||||||||||||||||||||||||||
Total lending related fees | $ | 26 | $ | 18 | 44.4 | $ | 45 | $ | 34 | 32.4 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Investment banking revenue: | ||||||||||||||||||||||||||||||||||||||
Underwriting fees | $ | 41 | $ | 84 | (51.2) | % | $ | 73 | $ | 209 | (65.1) | % | ||||||||||||||||||||||||||
Advisory fees | 69 | 9 | NM | 123 | 13 | NM | ||||||||||||||||||||||||||||||||
Private placements and other | 15 | 10 | 50.0 | 22 | 23 | (4.3) | ||||||||||||||||||||||||||||||||
Total investment banking revenue | $ | 125 | $ | 103 | 21.4 | $ | 218 | $ | 245 | (11.0) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Compensation and benefits | $ | 502 | $ | 425 | 18.1 | % | $ | 1,086 | $ | 870 | 24.8 | % | ||||||||||||||||||||||||||
Professional services | 132 | 97 | 36.1 | 238 | 178 | 33.7 | ||||||||||||||||||||||||||||||||
Premises and equipment | 60 | 37 | 62.2 | 118 | 70 | 68.6 | ||||||||||||||||||||||||||||||||
Net occupancy | 26 | 17 | 52.9 | 49 | 35 | 40.0 | ||||||||||||||||||||||||||||||||
Business development and travel | 27 | 3 | NM | 41 | 7 | NM | ||||||||||||||||||||||||||||||||
FDIC and state assessments | 16 | 10 | 60.0 | 32 | 20 | 60.0 | ||||||||||||||||||||||||||||||||
Merger-related charges | 16 | 19 | (15.8) | 32 | 19 | 68.4 | ||||||||||||||||||||||||||||||||
Other | 69 | 45 | 53.3 | 125 | 90 | 38.9 | ||||||||||||||||||||||||||||||||
Total noninterest expense | $ | 848 | $ | 653 | 29.9 | $ | 1,721 | $ | 1,289 | 33.5 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Compensation and benefits: | ||||||||||||||||||||||||||||||||||||||
Salaries and wages | $ | 264 | $ | 146 | 80.8 | % | $ | 500 | $ | 309 | 61.8 | % | ||||||||||||||||||||||||||
Incentive compensation plans | 117 | 162 | (27.8) | 311 | 312 | (0.3) | ||||||||||||||||||||||||||||||||
Other employee incentives and benefits (1) | 121 | 117 | 3.4 | 275 | 249 | 10.4 | ||||||||||||||||||||||||||||||||
Total compensation and benefits | $ | 502 | $ | 425 | 18.1 | $ | 1,086 | $ | 870 | 24.8 | ||||||||||||||||||||||||||||
Period-end full-time equivalent employees | 7,743 | 4,932 | 57.0 | 7,743 | 4,932 | 57.0 | ||||||||||||||||||||||||||||||||
Average full-time equivalent employees | 7,528 | 4,808 | 56.6 | 7,251 | 4,705 | 54.1 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||
Personnel-related | $ | 4 | $ | — | NM | $ | 5 | $ | — | NM | |||||||||||||||||||||||||
Occupancy and facilities | — | — | — | % | 4 | — | NM | ||||||||||||||||||||||||||||
Professional services | 4 | 15 | (73.3) | 10 | 15 | (33.3) | % | ||||||||||||||||||||||||||||
Systems integration and related charges | 8 | 4 | 100.0 | 13 | 4 | NM | |||||||||||||||||||||||||||||
Total merger-related charges | $ | 16 | $ | 19 | (15.8) | $ | 32 | $ | 19 | 68.4 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Noninterest income (1) | $ | 24 | $ | (36) | (166.7) | $ | 23 | $ | (52) | (144.2) | ||||||||||||||||||||||||||||
Carried interest allocation (2) | (4) | (77) | (94.8) | (21) | (86) | (75.6) | ||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | $ | 20 | $ | (113) | (117.7) | $ | 2 | $ | (138) | (101.4) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Net interest income | $ | 979 | $ | 707 | 38.5 | % | $ | 1,886 | $ | 1,318 | 43.1 | % | ||||||||||||||||||||||||||
Provision for credit losses | (136) | (11) | NM | (142) | (56) | 153.6 | ||||||||||||||||||||||||||||||||
Noninterest income | 261 | 173 | 50.9 | 473 | 332 | 42.5 | ||||||||||||||||||||||||||||||||
Noninterest expense | (370) | (304) | 21.7 | (767) | (580) | 32.2 | ||||||||||||||||||||||||||||||||
Income before income tax expense | $ | 734 | $ | 565 | 29.9 | $ | 1,450 | $ | 1,014 | 43.0 | ||||||||||||||||||||||||||||
Total average loans, amortized cost | $ | 54,121 | $ | 41,689 | 29.8 | $ | 53,183 | $ | 39,964 | 33.1 | ||||||||||||||||||||||||||||
Total average assets | 181,087 | 130,844 | 38.4 | 179,524 | 119,415 | 50.3 | ||||||||||||||||||||||||||||||||
Total average deposits | 178,293 | 128,652 | 38.6 | 176,866 | 117,396 | 50.7 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Net interest income | $ | 102 | $ | 37 | 175.7 | % | $ | 184 | $ | 72 | 155.6 | % | ||||||||||||||||||||||||||
(Provision for) reduction of credit losses | (10) | (5) | 100.0 | (12) | 4 | NM | ||||||||||||||||||||||||||||||||
Noninterest income | 24 | 2 | NM | 49 | 3 | NM | ||||||||||||||||||||||||||||||||
Noninterest expense | (87) | (18) | NM | (181) | (33) | NM | ||||||||||||||||||||||||||||||||
Income before income tax expense | $ | 29 | $ | 16 | 81.3 | $ | 40 | $ | 46 | (13.0) | ||||||||||||||||||||||||||||
Total average loans, amortized cost | $ | 14,644 | $ | 6,192 | 136.5 | $ | 14,472 | $ | 6,118 | 136.5 | ||||||||||||||||||||||||||||
Total average assets | 16,335 | 6,240 | 161.8 | 16,163 | 6,169 | 162.0 | ||||||||||||||||||||||||||||||||
Total average deposits | 13,151 | 4,243 | NM | 13,780 | 3,895 | NM |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Noninterest (losses) income | $ | (89) | $ | 175 | (150.9) | (24) | 244 | (109.8) | ||||||||||||||||||||||||||||||
Noninterest expense | (17) | (18) | (5.6) | (36) | (34) | 5.9 | ||||||||||||||||||||||||||||||||
(Loss) income before income tax expense | $ | (106) | $ | 157 | (167.5) | $ | (60) | $ | 210 | (128.6) | ||||||||||||||||||||||||||||
Total average assets | $ | 941 | $ | 613 | 53.5 | $ | 917 | $ | 595 | 54.1 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||||
Noninterest income | $ | 131 | $ | 149 | (12.1) | 252 | 319 | (21.0) | ||||||||||||||||||||||||||||||
Noninterest expense | (141) | (98) | 43.9 | (275) | (235) | 17.0 | ||||||||||||||||||||||||||||||||
(Loss) income before income tax expense | $ | (10) | $ | 51 | (119.6) | $ | (23) | $ | 84 | (127.4) | ||||||||||||||||||||||||||||
Total average assets | $ | 846 | $ | 729 | 16.0 | $ | 919 | $ | 748 | 22.9 |
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying Value | Weighted Average Yield | Carrying Value | Weighted Average Yield | Carrying Value | Weighted Average Yield | Carrying Value | Weighted Average Yield | Carrying Value | Weighted Average Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 16,392 | 1.29 | % | $ | 272 | 0.22 | % | $ | 16,120 | 1.31 | % | $ | — | — | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||
U.S. agency debentures | 122 | 3.04 | 17 | 1.79 | 35 | 3.01 | 70 | 3.31 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government debt securities | 40 | (0.78) | 40 | (0.78) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued MBS | 7,340 | 1.54 | — | — | — | — | — | — | 7,340 | 1.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | 790 | 1.35 | — | — | — | — | — | — | 790 | 1.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued CMBS | 1,539 | 1.88 | — | — | 104 | 1.24 | 1,435 | 1.94 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 26,223 | 1.40 | $ | 329 | 0.18 | $ | 16,259 | 1.31 | $ | 1,505 | 2.00 | $ | 8,130 | 1.52 |
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Net Carry Value | Weighted Average Yield | Net Carry Value | Weighted Average Yield | Net Carry Value | Weighted Average Yield | Net Carry Value | Weighted Average Yield | Net Carry Value | Weighted Average Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency debentures | $ | 536 | 1.97 | % | $ | 4 | 2.34 | % | $ | 109 | 2.50 | % | $ | 423 | 1.83 | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued MBS | 61,112 | 1.55 | — | — | 4 | 2.41 | 1,102 | 2.33 | 60,006 | 1.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued CMO—fixed rate | 11,103 | 1.48 | — | — | 28 | 1.62 | 239 | 1.61 | 10,836 | 1.48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued CMO—variable rate | 87 | 0.74 | — | — | — | — | — | — | 87 | 0.74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued CMBS | 14,821 | 1.63 | 32 | 0.36 | 175 | 0.82 | 969 | 1.93 | 13,645 | 1.63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds and notes | 7,450 | 2.82 | 27 | 2.18 | 199 | 2.45 | 1,294 | 2.76 | 5,930 | 2.85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 705 | 1.86 | — | — | 52 | 1.70 | 653 | 1.87 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 95,814 | 1.66 | $ | 63 | 1.27 | $ | 567 | 1.85 | $ | 4,680 | 2.39 | $ | 90,504 | 1.63 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in millions) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||||||||||||
Non-marketable and other equity securities: | ||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||
Consolidated venture capital and private equity fund investments (1) | $ | 174 | $ | 92 | $ | 130 | $ | 36 | ||||||||||||||||||
Unconsolidated venture capital and private equity fund investments (2) | 172 | 172 | 208 | 208 | ||||||||||||||||||||||
Other investments without a readily determinable fair value (3) | 188 | 188 | 164 | 164 | ||||||||||||||||||||||
Other equity securities in public companies (fair value accounting (4) | 32 | 32 | 117 | 117 | ||||||||||||||||||||||
Non-marketable securities (equity method accounting) (5): | ||||||||||||||||||||||||||
Venture capital and private equity fund investments | 663 | 387 | 671 | 397 | ||||||||||||||||||||||
Debt funds | 5 | 5 | 5 | 5 | ||||||||||||||||||||||
Other investments | 277 | 277 | 294 | 294 | ||||||||||||||||||||||
Investments in qualified affordable housing projects, net | 1,134 | 1,134 | 954 | 954 | ||||||||||||||||||||||
Total non-marketable and other equity securities | $ | 2,645 | $ | 2,287 | $ | 2,543 | $ | 2,175 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in millions) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||||||||||||
Strategic Investors Fund, LP | $ | 2 | $ | — | $ | 2 | $ | — | ||||||||||||||||||
Capital Preferred Return Fund, LP | 53 | 12 | 61 | 13 | ||||||||||||||||||||||
Growth Partners, LP | 59 | 20 | 67 | 23 | ||||||||||||||||||||||
Redwood Evergreen Fund, LP | 60 | 60 | — | — | ||||||||||||||||||||||
Total consolidated venture capital and private equity fund investments | $ | 174 | $ | 92 | $ | 130 | $ | 36 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in millions) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||||||||||||
Venture capital and private equity fund investments: | ||||||||||||||||||||||||||
Strategic Investors Fund II, LP | $ | 2 | $ | 1 | $ | 3 | $ | 3 | ||||||||||||||||||
Strategic Investors Fund III, LP | 16 | 13 | 25 | 21 | ||||||||||||||||||||||
Strategic Investors Fund IV, LP | 28 | 24 | 36 | 30 | ||||||||||||||||||||||
Strategic Investors Fund V, LP | 75 | 39 | 87 | 45 | ||||||||||||||||||||||
CP II, LP (1) | 2 | 1 | 2 | 1 | ||||||||||||||||||||||
Other venture capital and private equity fund investments | 540 | 309 | 518 | 298 | ||||||||||||||||||||||
Total venture capital and private equity fund investments | $ | 663 | $ | 387 | $ | 671 | $ | 398 | ||||||||||||||||||
Debt funds: | ||||||||||||||||||||||||||
Gold Hill Capital 2008, LP (2) | $ | 4 | $ | 4 | $ | 4 | $ | 4 | ||||||||||||||||||
Other debt funds | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
Total debt funds | $ | 5 | $ | 5 | $ | 5 | $ | 5 | ||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||
SPD Silicon Valley Bank Co., Ltd. | $ | 146 | $ | 146 | $ | 154 | $ | 154 | ||||||||||||||||||
Other investments | 131 | 131 | 140 | 140 | ||||||||||||||||||||||
Total other investments | $ | 277 | $ | 277 | $ | 294 | $ | 294 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | Percentage | Amount | Percentage | ||||||||||||||||||||||
Global fund banking | $ | 40,316 | 56.8 | % | $ | 37,958 | 57.3 | % | ||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||
Early stage | 1,856 | 2.6 | 1,593 | 2.4 | ||||||||||||||||||||||
Growth stage | 4,159 | 5.9 | 3,951 | 5.9 | ||||||||||||||||||||||
Total investor dependent | 6,015 | 8.5 | 5,544 | 8.3 | ||||||||||||||||||||||
Cash flow dependent- SLBO | 1,859 | 2.6 | 1,798 | 2.7 | ||||||||||||||||||||||
Innovation C&I | 7,753 | 10.9 | 6,673 | 10.1 | ||||||||||||||||||||||
Private bank | 9,770 | 13.8 | 8,743 | 13.2 | ||||||||||||||||||||||
CRE | 2,617 | 3.7 | 2,670 | 4.0 | ||||||||||||||||||||||
Premium wine | 1,065 | 1.5 | 985 | 1.5 | ||||||||||||||||||||||
Other C&I | 1,136 | 1.6 | 1,257 | 1.9 | ||||||||||||||||||||||
Other | 365 | 0.5 | 317 | 0.5 | ||||||||||||||||||||||
PPP | 59 | 0.1 | 331 | 0.5 | ||||||||||||||||||||||
Total loans | $ | 70,955 | 100.0 | % | $ | 66,276 | 100.0 | % |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Real estate secured loans: | ||||||||||||||
Private bank: | ||||||||||||||
Loans for personal residence | $ | 7,680 | $ | 6,939 | ||||||||||
Loans to eligible employees | 501 | 455 | ||||||||||||
Home equity lines of credit | 143 | 130 | ||||||||||||
Other | 138 | 135 | ||||||||||||
Total private bank loans secured by real estate | $ | 8,462 | $ | 7,659 | ||||||||||
CRE: | ||||||||||||||
Multifamily and residential investment | 947 | 1,021 | ||||||||||||
Retail | 516 | 524 | ||||||||||||
Office and medical | 468 | 499 | ||||||||||||
Manufacturing, industrial and warehouse | 403 | 336 | ||||||||||||
Hospitality | 141 | 142 | ||||||||||||
Other | 142 | 148 | ||||||||||||
Total CRE loans secured by real estate | $ | 2,617 | $ | 2,670 | ||||||||||
Premium wine | 846 | 793 | ||||||||||||
Other | 405 | 334 | ||||||||||||
Total real estate secured loans | $ | 12,330 | $ | 11,456 |
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||||||||||||||||
Global fund banking | $ | 1,116 | $ | 1,659 | $ | 3,442 | $ | 3,219 | $ | 30,881 | $ | 40,317 | ||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||
Early stage | 1,292 | 375 | 197 | 21 | — | 1,885 | ||||||||||||||||||||||||||||||||
Growth stage | 864 | 1,058 | 1,213 | 405 | 621 | 4,161 | ||||||||||||||||||||||||||||||||
Total Investor Dependent | $ | 2,156 | $ | 1,433 | $ | 1,410 | $ | 426 | $ | 621 | $ | 6,046 | ||||||||||||||||||||||||||
Cash flow dependent - SLBO | 6 | 47 | 327 | 466 | 1,013 | 1,859 | ||||||||||||||||||||||||||||||||
Innovation C&I | 450 | 377 | 987 | 1,136 | 4,814 | 7,764 | ||||||||||||||||||||||||||||||||
Private bank | 7,267 | 1,165 | 882 | 196 | 261 | 9,771 | ||||||||||||||||||||||||||||||||
CRE | 774 | 617 | 781 | 347 | 98 | 2,617 | ||||||||||||||||||||||||||||||||
Premium wine | 202 | 296 | 237 | 144 | 188 | 1,067 | ||||||||||||||||||||||||||||||||
Other C&I | 350 | 165 | 258 | 251 | 131 | 1,155 | ||||||||||||||||||||||||||||||||
Other | 86 | 99 | 131 | 43 | — | 359 | ||||||||||||||||||||||||||||||||
Total loans (1) | $ | 12,407 | $ | 5,858 | $ | 8,455 | $ | 6,228 | $ | 38,007 | $ | 70,955 |
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||||||||||||||||
Global fund banking | $ | 996 | $ | 1,494 | $ | 2,905 | $ | 3,163 | $ | 29,405 | $ | 37,963 | ||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||
Early stage | 1,392 | 219 | 124 | — | — | 1,735 | ||||||||||||||||||||||||||||||||
Growth stage | 855 | 1,068 | 1,122 | 374 | 551 | 3,970 | ||||||||||||||||||||||||||||||||
Total investor dependent | 2,247 | 1,287 | 1,246 | 374 | 551 | 5,705 | ||||||||||||||||||||||||||||||||
Cash flow dependent - SLBO | 7 | 31 | 287 | 508 | 965 | 1,798 | ||||||||||||||||||||||||||||||||
Innovation C&I | 462 | 432 | 920 | 912 | 4,018 | 6,744 | ||||||||||||||||||||||||||||||||
Private bank | 6,674 | 950 | 735 | 217 | 167 | 8,743 | ||||||||||||||||||||||||||||||||
CRE | 823 | 652 | 869 | 246 | 80 | 2,670 | ||||||||||||||||||||||||||||||||
Premium wine | 215 | 267 | 269 | 124 | 120 | 995 | ||||||||||||||||||||||||||||||||
Other C&I | 444 | 169 | 262 | 217 | 249 | 1,341 | ||||||||||||||||||||||||||||||||
Other | 93 | 123 | 101 | — | — | 317 | ||||||||||||||||||||||||||||||||
Total loans (1) | $ | 11,961 | $ | 5,405 | $ | 7,594 | $ | 5,761 | $ | 35,555 | $ | 66,276 |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Nonperforming, past due, and restructured loans: | ||||||||||||||
Nonaccrual loans | $ | 93 | $ | 84 | ||||||||||
Loans past due 90 days or more still accruing interest | — | 7 | ||||||||||||
Total nonperforming loans | 93 | 91 | ||||||||||||
OREO and other foreclosed assets | 1 | 1 | ||||||||||||
Total nonperforming assets | $ | 94 | $ | 92 | ||||||||||
Performing TDRs | $ | — | $ | 40 | ||||||||||
Nonaccrual loans as a percentage of total loans | 0.13 | % | 0.13 | % | ||||||||||
Nonperforming loans as a percentage of total loans | 0.13 | % | 0.14 | |||||||||||
Nonperforming assets as a percentage of total assets | 0.04 | 0.04 | ||||||||||||
ACL for loans (1) | $ | 545 | $ | 422 | ||||||||||
As a percentage of total loans | 0.77 | % | 0.64 | % | ||||||||||
As a percentage of total nonperforming loans | 586.02 | 463.74 | ||||||||||||
ACL for nonaccrual loans (1) | $ | 36 | $ | 35 | ||||||||||
As a percentage of total loans | 0.05 | % | 0.05 | % | ||||||||||
As a percentage of total nonperforming loans | 38.71 | 38.46 | ||||||||||||
ACL for total performing loans (1) | $ | 509 | $ | 387 | ||||||||||
As a percentage of total loans | 0.72 | % | 0.58 | % | ||||||||||
As a percentage of total performing loans | 0.72 | 0.58 | ||||||||||||
Total loans | $ | 70,955 | $ | 66,276 | ||||||||||
Total performing loans | 70,862 | 66,185 | ||||||||||||
ACL for unfunded credit commitments (2) | 224 | 171 | ||||||||||||
As a percentage of total unfunded credit commitments | 0.44 | % | 0.39 | % | ||||||||||
Total unfunded credit commitments (3) | $ | 50,577 | $ | 44,016 |
June 30, 2022 | December 31, 2021 | |||||||||||||
Key economic factors from Moody's baseline forecasts | ||||||||||||||
Gross domestic product projected growth rate (1) | 2.6 | % | 6.8 | % | ||||||||||
Projected unemployment rate (1) | 3.6 | % | 4.3 | % | ||||||||||
Housing price index projected growth rate (1) | 1.0 | % | 5.9 | % | ||||||||||
Weightings applied to different Moody's economic scenarios | ||||||||||||||
Upward outlook (Moody's S1) | 15.0 | % | 30.0 | % | ||||||||||
Baseline (Moody's B) | 20.0 | % | 40.0 | % | ||||||||||
Downward outlook (Moody's S3) | 65.0 | % | 30.0 | % | ||||||||||
Total | 100.0 | % | 100.0 | % |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Balance, beginning of period | $ | 70 | $ | 90 | $ | 84 | $ | 104 | ||||||||||||||||||
Additions | 77 | 9 | 82 | 14 | ||||||||||||||||||||||
Paydowns and other reductions | (40) | (9) | (56) | (18) | ||||||||||||||||||||||
Charge-offs | (14) | (11) | (17) | (21) | ||||||||||||||||||||||
Balance, end of period | $ | 93 | $ | 79 | $ | 93 | $ | 79 | ||||||||||||||||||
Average nonaccrual loans | $ | 93 | $ | 84 | $ | 84 | $ | 107 |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | % Change | |||||||||||||||||
Derivative assets (1) | $ | 705 | $ | 565 | 24.8 | % | ||||||||||||||
Accrued interest receivable | 539 | 470 | 14.7 | |||||||||||||||||
FHLB and Federal Reserve Bank stock | 373 | 107 | NM | |||||||||||||||||
Net deferred tax assets | 546 | 24 | NM | |||||||||||||||||
Accounts receivable | 60 | 54 | 11.1 | |||||||||||||||||
Other assets | 554 | 708 | (21.8) | |||||||||||||||||
Total accrued interest receivable and other assets | $ | 2,777 | $ | 1,928 | 44.0 |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | % Change | |||||||||||||||||
Assets: | ||||||||||||||||||||
Equity warrant assets | $ | 322 | $ | 277 | 16.2 | % | ||||||||||||||
Contingent conversion rights | 6 | — | 100.0 | |||||||||||||||||
Foreign exchange contracts | 280 | 171 | 63.7 | |||||||||||||||||
Total return swaps | 27 | — | 100.0 | |||||||||||||||||
Client interest rate derivatives | 70 | 99 | (29.3) | |||||||||||||||||
Interest rate swaps | — | 18 | (100.0) | |||||||||||||||||
Total derivative assets | $ | 705 | $ | 565 | 24.8 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Foreign exchange contracts | $ | 271 | $ | 137 | 97.8 | |||||||||||||||
Client interest rate derivatives | 153 | 101 | 51.5 | |||||||||||||||||
Total derivative liabilities | $ | 424 | $ | 238 | 78.2 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Balance, beginning of period | $ | 323 | $ | 244 | $ | 277 | $ | 203 | ||||||||||||||||||
New equity warrant assets | 6 | 6 | 12 | 13 | ||||||||||||||||||||||
Non-cash changes in fair value, net | 9 | 45 | 54 | 94 | ||||||||||||||||||||||
Exercised equity warrant assets | (15) | (28) | (19) | (43) | ||||||||||||||||||||||
Terminated equity warrant assets | (1) | (1) | (2) | (1) | ||||||||||||||||||||||
Balance, end of period | $ | 322 | $ | 266 | $ | 322 | $ | 266 |
(Dollars in millions) | June 30, 2022 | December 31, 2021 | % Change | |||||||||||||||||
Accrued compensation | $ | 444 | $ | 896 | (50.4) | % | ||||||||||||||
Allowance for unfunded credit commitments | 224 | 171 | 31.0 | |||||||||||||||||
Derivative liabilities (1) | 424 | 238 | 78.2 | |||||||||||||||||
Other liabilities | 1,629 | 1,282 | 27.1 | |||||||||||||||||
Total other liabilities | $ | 2,721 | $ | 2,587 | 5.2 |
SVB Financial | Bank | |||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||
Common stock plus related surplus, net of treasury stock | $ | 5,223 | $ | 5,157 | $ | 10,022 | $ | 9,265 | ||||||||||||||||||
Retained earnings | 8,247 | 7,442 | 6,555 | 5,537 | ||||||||||||||||||||||
AOCI | (1,198) | (9) | (1,191) | (7) | ||||||||||||||||||||||
CET1 capital before adjustments and deductions | 12,272 | 12,590 | 15,386 | 14,795 | ||||||||||||||||||||||
Less: Goodwill (net of associated deferred tax liabilities) | 367 | 369 | 200 | 200 | ||||||||||||||||||||||
Intangibles (net of associated deferred tax liabilities) | 132 | 133 | 70 | 70 | ||||||||||||||||||||||
AOCI opt-out election related adjustments | (1,177) | (18) | (1,173) | (17) | ||||||||||||||||||||||
Add: CECL transition provision | 60 | 80 | 60 | 80 | ||||||||||||||||||||||
Total adjustments and deductions from CET1 capital | (738) | 404 | (963) | 173 | ||||||||||||||||||||||
CET1 Capital | 13,010 | 12,186 | 16,349 | 14,622 | ||||||||||||||||||||||
Add: Qualifying Preferred stock | 3,646 | 3,646 | — | — | ||||||||||||||||||||||
Minority interest | 358 | 373 | — | — | ||||||||||||||||||||||
Less: Additional tier 1 capital deductions | 104 | — | — | — | ||||||||||||||||||||||
Additional tier 1 capital | 3,900 | 4,019 | — | — | ||||||||||||||||||||||
Tier 1 Capital | 16,910 | 16,205 | 16,349 | 14,622 | ||||||||||||||||||||||
Allowance for credit losses included in Tier 2 capital | 776 | 600 | 776 | 600 | ||||||||||||||||||||||
CECL transition provision for allowance for credit losses | (70) | (93) | (70) | (93) | ||||||||||||||||||||||
Tier 2 Capital | 706 | 507 | 706 | 507 | ||||||||||||||||||||||
Total capital | $ | 17,616 | $ | 16,712 | $ | 17,055 | $ | 15,129 | ||||||||||||||||||
Total risk-weighted assets | $ | 108,599 | $ | 100,812 | $ | 106,258 | $ | 98,214 | ||||||||||||||||||
Average quarterly total assets (1) | $ | 218,764 | $ | 204,380 | $ | 216,538 | $ | 201,880 |
June 30, 2022 | December 31, 2021 | Required Minimum | Required Minimum + Capital Conservation Buffer (1) | Well Capitalized Minimum | ||||||||||||||||||||||||||||
SVB Financial: | ||||||||||||||||||||||||||||||||
CET1 risk-based capital ratio (2)(3) | 11.98 | % | 12.09 | % | 4.5 | % | 7.0 | % | N/A | |||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 15.57 | 16.08 | 6.0 | 8.5 | 6.0 | |||||||||||||||||||||||||||
Total risk-based capital ratio (3) | 16.22 | 16.58 | 8.0 | 10.5 | 10.0 | |||||||||||||||||||||||||||
Tier 1 leverage ratio (2)(3) | 7.73 | 7.93 | 4.0 | N/A | N/A | |||||||||||||||||||||||||||
Tangible common equity to tangible assets ratio (4)(5) | 5.50 | 5.73 | N/A | N/A | N/A | |||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets ratio (4)(5) | 10.84 | 11.98 | N/A | N/A | N/A | |||||||||||||||||||||||||||
Bank: | ||||||||||||||||||||||||||||||||
CET1 risk-based capital ratio (3) | 15.39 | % | 14.89 | % | 4.5 | % | 7.0 | % | 6.5 | % | ||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 15.39 | 14.89 | 6.0 | 8.5 | 8.0 | |||||||||||||||||||||||||||
Total risk-based capital ratio (3) | 16.05 | 15.40 | 8.0 | 10.5 | 10.0 | |||||||||||||||||||||||||||
Tier 1 leverage ratio (3) | 7.55 | 7.24 | 4.0 | N/A | 5.0 | |||||||||||||||||||||||||||
Tangible common equity to tangible assets ratio (4)(5) | 7.15 | 7.09 | N/A | N/A | N/A | |||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets ratio (4)(5) | 14.23 | 15.06 | N/A | N/A | N/A |
SVB Financial | Bank | |||||||||||||||||||||||||
(Dollars in millions) | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
GAAP stockholders’ equity | $ | 15,918 | $ | 16,236 | $ | 15,386 | $ | 14,795 | ||||||||||||||||||
Less: preferred stock | 3,646 | 3,646 | — | — | ||||||||||||||||||||||
Less: intangible assets | 523 | 535 | 291 | — | ||||||||||||||||||||||
Plus: net deferred taxes on intangible assets | 24 | 26 | 22 | — | ||||||||||||||||||||||
Tangible common equity | $ | 11,773 | $ | 12,081 | $ | 15,117 | $ | 14,795 | ||||||||||||||||||
GAAP total assets | $ | 214,389 | $ | 211,478 | $ | 211,814 | $ | 208,576 | ||||||||||||||||||
Less: intangible assets | 523 | 535 | 291 | — | ||||||||||||||||||||||
Plus: net deferred taxes on intangible assets | 24 | 26 | 22 | — | ||||||||||||||||||||||
Tangible assets | $ | 213,890 | $ | 210,969 | $ | 211,545 | $ | 208,576 | ||||||||||||||||||
Risk-weighted assets | $ | 108,599 | $ | 100,812 | $ | 106,258 | $ | 98,214 | ||||||||||||||||||
Non-GAAP tangible common equity to tangible assets | 5.50 | % | 5.73 | % | 7.15 | % | 7.09 | % | ||||||||||||||||||
Non-GAAP tangible common equity to risk-weighted assets | 10.84 | 11.98 | 14.23 | 15.06 |
Six months ended June 30, | ||||||||||||||
(Dollars in millions) | 2022 | 2021 | ||||||||||||
Average cash and cash equivalents | $ | 17,785 | $ | 21,458 | ||||||||||
Percentage of total average assets | 8.2 | % | 15.6 | % | ||||||||||
Net cash provided by operating activities | $ | 1,411 | $ | 695 | ||||||||||
Net cash used for investing activities | (3,628) | (42,041) | ||||||||||||
Net cash provided by financing activities | 2,996 | 47,630 | ||||||||||||
Net increase in cash and cash equivalents | $ | 779 | $ | 6,284 |
(Dollars in millions) | Estimated | Estimated Increase/(Decrease) in EVE | Estimated | Estimated Increase/(Decrease) in NII | ||||||||||||||||||||||||||||||||||
EVE | Amount | Percent | NII | Amount | Percent | |||||||||||||||||||||||||||||||||
June 30, 2022: | ||||||||||||||||||||||||||||||||||||||
+200 | $ | 15,320 | $ | (4,542) | (22.9) | % | $ | 6,381 | $ | 760 | 13.5 | % | ||||||||||||||||||||||||||
+100 | 17,339 | (2,523) | (12.7) | 6,000 | 379 | 6.7 | ||||||||||||||||||||||||||||||||
— | 19,862 | — | — | 5,621 | — | — | ||||||||||||||||||||||||||||||||
-100 | 22,347 | 2,485 | 12.5 | 5,047 | (574) | (10.2) | ||||||||||||||||||||||||||||||||
-200 | 23,923 | 4,061 | 20.4 | 4,482 | (1,139) | (20.3) | ||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||||||||
+200 | $ | 24,476 | $ | (1,073) | (4.2) | % | $ | 5,258 | $ | 981 | 22.9 | % | ||||||||||||||||||||||||||
+100 | 25,140 | (409) | (1.6) | 4,745 | 468 | 10.9 | ||||||||||||||||||||||||||||||||
— | 25,549 | — | — | 4,277 | — | — | ||||||||||||||||||||||||||||||||
-100 | 24,042 | (1,507) | (5.9) | 4,002 | (275) | (6.4) | ||||||||||||||||||||||||||||||||
-200 | 21,410 | (4,139) | (16.2) | 3,911 | (366) | (8.6) |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||||||||||||||||||||||||||||
Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | X | ||||||||||||||||||||||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | X |
SVB Financial Group | ||||||||
Date: August 8, 2022 | /s/ DANIEL BECK | |||||||
Daniel Beck | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) | ||||||||
SVB Financial Group | ||||||||
Date: August 8, 2022 | /s/ KAREN HON | |||||||
Karen Hon | ||||||||
Chief Accounting Officer | ||||||||
(Principal Accounting Officer) |
Date: August 8, 2022 | /s/ GREG BECKER | |||||||
Greg Becker | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: August 8, 2022 | /s/ DANIEL BECK | |||||||
Daniel Beck | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: August 8, 2022 | /s/ GREG BECKER | |||||||
Greg Becker | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: August 8, 2022 | /s/ DANIEL BECK | |||||||
Daniel Beck | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Interim Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Available-for-sale, amortized cost | $ 28,141 | $ 27,370 |
Held-to-maturity securities, allowance for credit losses | 6 | 7 |
HTM securities | $ 84,579 | $ 97,227 |
Preferred stock, par value, in usd per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 383,500 | 383,500 |
Preferred stock, shares outstanding | 383,500 | 383,500 |
Common stock, par value, in usd per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares, issued | 59,081,326 | 58,748,469 |
Common stock, shares outstanding | 59,081,326 | 58,748,469 |
Basis of Presentation |
6 Months Ended |
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Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation SVB Financial Group is a diversified financial services company, as well as a bank holding company and a financial holding company. SVB Financial was incorporated in the state of Delaware in March 1999. Through our various subsidiaries and divisions, we offer a diverse set of banking and financial products and services to support our clients of all sizes and stages throughout their life cycles. In these notes to our unaudited interim consolidated financial statements, when we refer to “SVB,” “SVB Financial Group,” “SVBFG," the “Company,” “we,” “our,” “us” or use similar words, we mean SVB Financial Group and all of its subsidiaries collectively, including Silicon Valley Bank (the “Bank”), unless the context requires otherwise. When we refer to “SVB Financial” or the “Parent” we are referring only to the parent company, SVB Financial Group (not including subsidiaries). The accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature that are, in the opinion of management, necessary to fairly present our financial position, results of operations and cash flows in accordance with GAAP. Such unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of results to be expected for any future periods. These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). Use of Estimates and Assumptions The preparation of unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates may change as new information is obtained. Among the more significant estimates are those that relate to: 1) ACL for loans and for unfunded credit commitments, 2) valuation of non-marketable and other equity securities, 3) valuation of equity warrant assets, 4) goodwill, intangible assets and other purchase accounting related adjustments, and 5) income taxes. Principles of Consolidation and Presentation Our unaudited interim consolidated financial statements include the accounts of SVB Financial Group and consolidated entities. All significant intercompany accounts and transactions with consolidated entities have been eliminated. For a further description of our accounting policies regarding consolidation refer to Consolidated Financial Statements and Supplementary Data — Note 2 — “Summary of Significant Accounting Policies” under Part II, Item 8 of our 2021 Form 10-K. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation. Changes include the presentation of our table summarizing the activity relating to our ACL for loans as a result of the acquisition of Boston Private, the consolidation of certain line items in our Consolidated Statement of Stockholders' Equity (unaudited), changes to our reportable segments and consolidation of certain line items in our Consolidated Statement of Cash Flows (unaudited) and accrued interest receivable and other assets and other liabilities tables within "Consolidated Financial Condition" under Part 1, Item 2 of this report. Summary of Significant Accounting Policies The accompanying unaudited interim consolidated financial statements have been prepared on a consistent basis with the accounting policies described in Consolidated Financial Statements and Supplementary Data — Note 2 — “Summary of Significant Accounting Policies” under Part II, Item 8 of our 2021 Form 10-K.
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Stockholders' Equity and EPS |
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Equity and Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and EPS | Stockholders' Equity and EPS AOCI The following table summarizes the items reclassified out of AOCI into the Consolidated Statements of Income (unaudited) for the three and six months ended June 30, 2022 and 2021:
The table below summarizes the activity relating to net gains and losses on our cash flow hedges included in AOCI for the three and six months ended June 30, 2022 and 2021. Over the next 12 months, we expect that approximately $49 million in AOCI at June 30, 2022, related to unrealized gains will be reclassified out of AOCI and recognized in net income.
EPS Basic EPS is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issuable for stock options and restricted stock unit awards outstanding under our 2006 Equity Incentive Plan and our ESPP. Potentially dilutive common shares are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive. The following is a reconciliation of basic EPS to diluted EPS for the three and six months ended June 30, 2022 and 2021:
The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation due to the antidilutive effect for the three and six months ended June 30, 2022 and 2021:
Preferred Stock The following table summarizes our preferred stock at June 30, 2022:
Consolidated Statement of Changes in Equity The following table summarizes the changes in our consolidated equity for the three months ended June 30, 2022 and 2021:
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Investments In Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest EntitiesOur involvement with VIEs includes our investments in venture capital and private equity funds, debt funds, private and public portfolio companies, qualified affordable housing projects, and subordinated debt instruments. The following table presents the carrying amounts and classification of variable interests in consolidated and unconsolidated VIEs as of June 30, 2022 and December 31, 2021:
(1) Included in our unconsolidated non-marketable and other equity securities portfolio at June 30, 2022 and December 31, 2021 are investments in qualified affordable housing projects of $1.1 billion and $954 million, respectively, and related other liabilities consisting of unfunded commitments of $614 million and $482 million, respectively. (2) Included in our unconsolidated accrued interest receivable and other assets are investments in statutory trusts for junior subordinated debt and included in long term debt previously issued by Boston Private and assumed in the acquisition of $6 million and $90 million, respectively, at June 30, 2022 and December 31, 2021. Non-marketable and other equity securities Our non-marketable and other equity securities portfolio primarily represents investments in venture capital and private equity funds, SPD-SVB, debt funds, private and public portfolio companies and qualified affordable housing projects. Many of these are investments held by SVB Financial in third-party funds in which we do not have controlling or significant variable interests. These investments represent our unconsolidated VIEs in the table above. Our non-marketable and other equity securities portfolio also includes investments from SVB Capital. SVB Capital is the funds management business of SVB Financial Group, which focuses primarily on venture capital investments. The SVB Capital family of funds is comprised of direct venture funds that invest in companies and funds of funds that invest in other venture capital funds. We have a controlling and significant variable interest in four of these SVB Capital funds and consolidate these funds for financial reporting purposes. Most investments are generally nonredeemable, and distributions are expected to be received through the liquidation of the underlying investments throughout the life of the investment fund. Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreement. Subject to applicable regulatory requirements, including the Volcker Rule, we also make commitments to invest in venture capital and private equity funds. For additional details, see Note 11 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments.” The Bank also has variable interests in low income housing tax credit funds, in connection with fulfilling its responsibilities under the CRA, that are designed to generate a return primarily through the realization of federal tax credits. These investments are typically limited partnerships in which the general partner, other than the Bank, holds the power over significant activities of the VIE; therefore, these investments are not consolidated. For additional information on our investments in qualified affordable housing projects, see Note 5 — “Investment Securities.". As of June 30, 2022, our exposure to loss with respect to the consolidated VIEs is limited to our net assets of $837 million and our exposure to loss for our unconsolidated VIEs is equal to our investment in these assets of $1.4 billion. Junior subordinated debentures SVB Financial Group assumed two statutory trusts during the merger with Boston Private. These trusts were for the purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures. These statutory trusts created by legacy Boston Private are not consolidated within the financial statements as the Company is not the primary beneficiary of the trusts; however, the total junior subordinated debentures payable to the preferred stockholders of statutory trusts are reported as long-term debt in the financial statements.
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Cash and Cash Equivalents |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents The following table details our cash and cash equivalents at June 30, 2022 and December 31, 2021:
(1)At June 30, 2022 and December 31, 2021, securities purchased under agreements to resell were collateralized by U.S. Treasury securities and U.S. agency securities with aggregate fair values of $554 million and $620 million, respectively. None of these securities were sold or repledged as of June 30, 2022 and December 31, 2021.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Our investment securities portfolio consists of: (i) an AFS securities portfolio and a HTM securities portfolio, both of which represent interest-earning investment securities, and (ii) a non-marketable and other equity securities portfolio, which primarily represents investments managed as part of our funds management business, investments in qualified affordable housing projects, as well as public equity securities held as a result of equity warrant assets exercised. AFS Securities The major components of our AFS investment securities portfolio at June 30, 2022 and December 31, 2021 are as follows:
The following table summarizes sale activity of AFS securities during the three and six months ended June 30, 2022 and 2021 as recorded in the line item “Gains on investment securities, net," a component of noninterest income:
The following tables summarize our AFS securities in an unrealized loss position for which an ACL has not been recorded and summarized into categories of AFS securities that were in an unrealized loss for position for less than 12 months, or 12 months or longer, as of June 30, 2022 and December 31, 2021:
(1)As of June 30, 2022, we identified a total of 767 investments that were in unrealized loss positions with 143 investments in an unrealized loss position for a period of time greater than 12 months. Based on our analysis of the securities in an unrealized loss position as of June 30, 2022, the decline in value is unrelated to credit loss and is related to changes in market interest rates since purchase and therefore changes in value for securities are included in other comprehensive income. Market valuations and credit loss analyses on assets in the AFS securities portfolio are reviewed and monitored on a quarterly basis. As of June 30, 2022, we do not intend to sell any of our securities in an unrealized loss position prior to recovery of our amortized cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our amortized cost basis. None of the investments in our AFS securities portfolio were past due as of June 30, 2022.
(1)As of December 31, 2021, we identified a total of 475 investments that were in unrealized loss positions, of which 4 investments are in an unrealized loss position for a period of time greater than 12 months. None of the investments in our AFS securities portfolio were past due as of December 31, 2021. The following table summarizes the fixed income securities, carried at fair value, classified as AFS as of June 30, 2022 by the remaining contractual principal maturities. For U.S. Treasury securities, U.S. agency debentures and foreign government debt securities, the expected maturity is the actual contractual maturity of the notes. Expected maturities for MBS may differ significantly from their contractual maturities because mortgage borrowers have the right to prepay outstanding loan obligations with or without penalties. MBS classified as AFS typically have original contractual maturities from 10 to 30 years whereas expected average lives of these securities tend to be significantly shorter and vary based upon structure and prepayments in lower interest rate environments.
HTM Securities The components of our HTM investment securities portfolio at June 30, 2022 and December 31, 2021 are as follows:
(1) Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.
(1) Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States. Allowance for Credit Losses for HTM Securities For HTM securities, for the three months ended June 30, 2022 the ACL balance remained consistent at $6 million. For HTM securities, for the six months ended June 30, 2022 the beginning ACL balance was $7 million, the reduction of credit losses was $1 million and the ending ACL balance was $6 million. For HTM securities, for the three months ended June 30, 2021, the beginning ACL balance was $1 million, the provision for credit losses was $4 million and the ending ACL balance was $5 million. For HTM securities, for the six months ended June 30, 2021 the beginning ACL balance was less than $1 million, the provision for credit losses was $5 million and the ending ACL balance was $5 million. AIR from HTM securities totaled $220 million at June 30, 2022 and $225 million at December 31, 2021 and is reported in "Accrued interest receivable and other assets" in our unaudited interim consolidated balance sheets. Credit Quality Indicators On a quarterly basis, management monitors the credit quality for HTM securities through the use of standard credit ratings. The following table summarizes our amortized cost of HTM securities aggregated by credit quality indicator at June 30, 2022 and December 31, 2021:
based upon structure and prepayments in lower interest rate environments; however, we expect to collect substantially all of the recorded investment on these securities.
Non-marketable and Other Equity Securities The major components of our non-marketable and other equity securities portfolio at June 30, 2022 and December 31, 2021 are as follows:
(1)The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and our ownership percentage of each fund at June 30, 2022 and December 31, 2021 (fair value accounting):
(2)The carrying value represents investments in 142 and 150 funds (primarily venture capital funds) at June 30, 2022 and December 31, 2021, respectively, where our ownership interest is typically less than 5% of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships operating activities and financial policies. We carry our unconsolidated venture capital and private equity fund investments at fair value based on the fund investments' net asset values per share as obtained from the general partners of the investments. For each fund investment, we adjust the net asset value per share for differences between our measurement date and the date of the fund investment’s net asset value by using the most recently available financial information from the investee general partner, for example March 31st for our June 30th consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period. (3)These investments include direct equity investments in private companies. The carrying value is based on the price at which the investment was acquired plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, exit strategies, financing transactions subsequent to the acquisition of the investment and a discount for certain investments that have lock-up restrictions or other features that indicate a discount to fair value is warranted. The following table shows the changes to the carrying amount of other investments without a readily determinable fair value for the six months ended June 30, 2022:
(4)Investments classified as other equity securities (fair value accounting) represent shares held in public companies as a result of exercising public equity warrant assets and direct equity investments in public companies held by our consolidated funds. Changes in equity securities measured at fair value are recognized through net income. (5)The following table shows the carrying value and our ownership percentage of each investment at June 30, 2022 and December 31, 2021 (equity method accounting):
(i)Our ownership includes direct ownership interest of 1.3 percent and indirect ownership interest of 3.8 percent through our investments in Strategic Investors Fund II, LP. (ii)Our ownership includes direct ownership interest of 11.5 percent and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of 4.0 percent. (6)The following table presents the balances of our investments in qualified affordable housing projects and related unfunded commitments included as a component of “Other liabilities” on our consolidated balance sheets at June 30, 2022 and December 31, 2021:
The following table presents other information relating to our investments in qualified affordable housing projects for the three and six months ended June 30, 2022 and 2021:
(i)All investments are amortized using the proportional amortization method and amortization expense is included in the provision for income taxes. The following table presents the net gains and losses on non-marketable and other equity securities for the three and six months ended June 30, 2022 and 2021 as recorded in the line item “Gains on investment securities, net," a component of noninterest income:
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Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments |
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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 private equity/venture capital, technology, life science/healthcare, premium wine and commercial real estate industries. 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 class of financing receivable below. 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 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 and life science/healthcare clients are reported under the Investor Dependent, Cash Flow Dependent - SLBO and Innovation C&I classes of financing receivable below. We also make commercial and industrial loans, such as working capital lines and term loans for equipment and fixed assets, to clients that are not in the technology and life science/healthcare industries mainly as a function of our wine and legacy Boston Private portfolios, which are reported in the Other C&I class of financing receivable below. Loans to the premium wine industry focus on vineyards and wineries that produce grapes and wines of high quality. Commercial real estate loans are generally acquisition financing for commercial properties such as office buildings, retail properties, apartment buildings, and industrial/warehouse space, which moving forward will predominantly support the innovation economy segments. In addition to commercial loans, we make consumer loans through SVB Private 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. The majority of these loans are included within the Other loan class below and are primarily secured by real estate. Additionally, beginning in April 2020, we accepted applications under the PPP administered by the SBA under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") and originated loans to qualified small businesses. PPP funds under the CARES Act were disbursed throughout 2020 and up to June 30, 2021. Loan Portfolio Segments and Classes of Financing Receivables The composition of loans at amortized cost basis broken out by class of financing receivable at June 30, 2022 and December 31, 2021 is presented in the following table:
(1) Total loans at amortized cost is net of unearned income, deferred fees and costs, and net unamortized premiums and discounts of $222 million and $250 million at June 30, 2022 and December 31, 2021, respectively. (2) Included within our total loan portfolio are credit card loans of $619 million and $583 million at June 30, 2022 and December 31, 2021, respectively. (3) Included within our total loan portfolio are construction loans of $443 million and $367 million at June 30, 2022 and December 31, 2021, respectively. 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 ACL for loans. The following tables summarize the credit quality indicators, broken out by class of financing receivable and vintage year, as of June 30, 2022 and December 31, 2021:
(1) These amounts consist of fees and clearing items that have not yet been allocated at the loan level.
Allowance for Credit Losses: Loans In the second quarter of 2022, the ACL for loans increased by $124 million, driven primarily by a deterioration in projected economic conditions, as well as loan growth, net charge-offs and an increase in nonaccrual reserves. The Moody's Analytics June 2022 forecast was utilized in our quantitative model for the ACL as of June 30, 2022. The forecast assumptions included a higher starting gross domestic product growth rate, however the overall forecasted growth rate is slower than in previous projections. The June 2022 forecast also included a significantly lower housing price index growth rate, with a small offset from a slightly improved unemployment rate. The overall impact of these assumptions was a slightly worse forecast than that used at March 31, 2022. Additionally, we determined that a higher weighting should be applied to the economic downturn scenario to align with our expectations as of June 30, 2022. After adjusting the weightings accordingly, 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 June 2022 forecast or our adjustment to weightings thereof, we addressed the risk through management's qualitative adjustments to our ACL. We do not estimate expected credit losses on 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 $222 million at June 30, 2022 and $171 million at December 31, 2021 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 ACL for loans for the three and six months ended June 30, 2022 and 2021, broken out by portfolio segment:
The following table summarizes the aging of our loans broken out by class of financing receivable as of June 30, 2022 and December 31, 2021:
Nonaccrual Loans The following table summarizes our nonaccrual loans with no allowance for credit loss at June 30, 2022 and December 31, 2021:
TDRs As of June 30, 2022, we had 57 TDRs with a total carrying value of $80 million where concessions have been granted to borrowers experiencing financial difficulties, in an attempt to maximize collection. We had $2 million of unfunded commitments available for funding to the clients associated with these TDRs as of June 30, 2022. The following table summarizes our loans modified in TDRs, broken out by class of financing receivable at June 30, 2022 and December 31, 2021:
The following table summarizes the recorded investment in loans modified in TDRs, broken out by class of financing receivable, for modifications made during the three and six months ended June 30, 2022 and 2021:
(1)There were no partial charge-offs for the three months ended June 30, 2022, and $5 million of partial charge-offs for the six months then ended. There were $6 million and $7 million of partial charge-offs for the three and six months ended June 30, 2021, respectively. During the three months ended June 30, 2022, new TDRs of $19 million were modified through payment deferrals granted to our clients. During the three months ended June 30, 2021, new TDRs of $1 million were modified through forgiveness of principal and $1 million through payment deferrals. During the six months ended June 30, 2022, new TDRs of $19 million were modified through payment deferrals granted to our clients, $1 million were modified through term extensions and $1 million were modified through settlement. During the six months ended June 30, 2021, $14 million were modified through payment deferrals granted to our clients and $3 million were modified through forgiveness of principal. Of loans modified in TDRs within the previous 12 months, none had defaulted during the three and six months ended June 30, 2022 and June 30, 2021. Charge-offs and defaults on previously restructured loans are evaluated to determine the impact to the ACL 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 ACL for loans as of June 30, 2022. ACL: Unfunded Credit Commitments We maintain a separate ACL for unfunded credit commitments that is determined using a methodology that is inherently similar to the methodology used for calculating the ACL for loans. At June 30, 2022, our ACL estimates utilized the Moody's economic forecasts from June 30, 2022 as mentioned above. In the second quarter of 2022, the ACL for unfunded commitments increased by $49 million from the prior quarter, driven primarily by the same deterioration in projected economic conditions described above, including the increased weight we placed on the downturn economic scenario in our model, as well as continued growth in our outstanding commitments. The following table summarizes the activity relating to our ACL for unfunded credit commitments for the three and six months ended June 30, 2022 and 2021:
(1)The “ACL: unfunded credit commitments” is included as a component of “other liabilities” on our unaudited interim consolidated balance sheets. See Note 11 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of this report for additional disclosures related to our commitments to extend credit.
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Goodwill and Other Intangible Assets |
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill at both June 30, 2022 and December 31, 2021 was $375 million which was a result of goodwill recognized for the acquisitions of SVB Securities, WestRiver Group's debt fund business, Boston Private and MoffettNathanson LLC. Other Intangible Assets The components of net other intangible assets were as follows:
For the six months ended June 30, 2022, we recorded amortization expense of $12 million. Assuming no future impairments of other intangible assets or additional acquisitions or dispositions, the following table presents the Company's future expected amortization expense for other intangible assets that will continue to be amortized as of June 30, 2022:
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We primarily use derivative financial instruments to manage interest rate risk and currency exchange rate risk and to assist customers with their risk management objectives, which may include currency exchange rate risks and interest rate risks. Also, in connection with negotiating credit facilities and certain other services, we often obtain equity warrant assets giving us the right to acquire stock in private, venture-backed companies in the technology and life science/healthcare industries. Interest Rate Risk Interest rate risk is our primary market risk and can result from timing and volume differences in the repricing of our interest rate sensitive assets and liabilities and changes in market interest rates. To manage interest rate risk on our interest rate sensitive assets, we have entered into interest rate swap contracts to hedge against future changes in interest rates. We designate these interest rate swap contracts as fair value and cash flow hedges. Fair Value Hedges To manage interest rate risk on our AFS securities portfolio, we enter into pay-fixed, receive-floating interest rate swap contracts to hedge against exposure to changes in the fair value of the securities resulting from changes in interest rates. We designate these interest rate swap contracts as fair value hedges that qualify for hedge accounting under ASC 815, Derivatives and Hedging ("ASC 815") and have elected to account for a portion of them using the last-of-layer method as outlined in ASC 815. We record the fair value hedges in other assets and other liabilities. For qualifying fair value hedges, both the changes in the fair value of the derivative and the portion of the fair value adjustments associated with the last-of-layer attributable to the hedged risk will be recognized into earnings as they occur. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item in the line item "investment securities" as part of interest income, a component of consolidated net income. We assess hedge effectiveness under ASC 815 on a quarterly basis to ensure all hedges remain highly effective and hedge accounting under ASC 815 can be applied. In conjunction with the assessment of effectiveness, we assess the hedged item to ensure it is expected to be outstanding at the hedged item’s assumed maturity date and the last-of-layer method of accounting under ASC 815 can be applied. If the hedging relationship no longer exists or no longer qualifies as a hedge per ASC 815, any remaining fair value basis adjustments are allocated to the individual assets in the portfolio and amortized into earnings over a period consistent with the amortization of other discounts and premiums associated with the respective assets. As allowed under GAAP, we applied the "shortcut" method of accounting to a portion of our fair value hedges which assumes there is perfect effectiveness. The following table summarizes the amortized cost basis of hedged assets that are designated and qualify as fair value hedges and the cumulative amount of fair value hedging adjustments included in the carrying value that have been recorded on our unaudited interim consolidated balance sheets as of June 30, 2022:
(1)These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At June 30, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $9.3 billion, the amounts of the designated hedged items was $5.9 billion and the cumulative basis adjustments associated with these hedging relationships was $313 million. (2)The balance includes $5 million of hedging adjustments on discontinued hedging relationships at June 30, 2022. Cash Flow Hedges To manage interest rate risk on our variable-interest rate loan portfolio, we enter into interest rate swap contracts to hedge against future changes in interest rates by using hedging instruments to lock in future cash inflows that would otherwise be impacted by movements in the market interest rates. We designate these interest rate swap contracts as cash flow hedges that qualify for hedge accounting under ASC 815 and record them in other assets and other liabilities. For qualifying cash flow hedges, changes in the fair value of the derivative are recorded in AOCI and recognized in earnings as the hedged item affects earnings. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item in the line item "loans" as part of interest income, a component of consolidated net income. We assess hedge effectiveness under ASC 815 on a quarterly basis to ensure all hedges remain highly effective and hedge accounting under ASC 815 can be applied. If the hedging relationship no longer exists or no longer qualifies as a hedge per ASC 815, any amounts remaining as gain or loss in AOCI are reclassified into earnings in the line item "loans" as part of interest income, a component of consolidated net income. As of March 31, 2020, all derivatives previously classified as hedges with notional balances totaling $5.0 billion and a net asset fair value of $228 million were terminated. As of June 30, 2022, the total unrealized gains on terminated cash flow hedges remaining in AOCI was $87 million, $62 million net of tax. The unrealized gains will be reclassified into interest income as the underlying forecasted transactions impact earnings through the original maturity of the hedged forecasted transactions. The total remaining term over which the unrealized gains will be reclassified into earnings is approximately three years. Currency Exchange Risk We enter into foreign exchange forward contracts to economically reduce our foreign exchange exposure risk associated with the net difference between foreign currency denominated assets and liabilities. We do not designate any foreign exchange forward contracts as derivative instruments that qualify for hedge accounting. Gains or losses from changes in currency rates on foreign currency denominated instruments are recorded in the line item “other” as part of noninterest income, a component of consolidated net income. We may experience ineffectiveness in the economic hedging relationship, because the instruments are revalued based upon changes in the currency’s spot rate on the principal value, while the forwards are revalued on a discounted cash flow basis. We record forward agreements in gain positions in other assets and loss positions in other liabilities, while net changes in fair value are recorded in the line item “other” as part of noninterest income, a component of consolidated net income. Other Derivative Instruments We issue loans to clients with conversion features allowing SVBFG to convert the contingent conversion rights to stock in private or public companies. All of our contingent conversion rights qualify as derivatives and are reported at fair value as a component of other assets on our consolidated balance sheet. Any changes in fair value after the grant date are recognized as net gains or losses in the line item "other" in noninterest income, a component of consolidated net income. We enter into total return swaps related to certain of our equity funds, which manages the risk of exposure from the volatility of equity investments and in the funds. We do not designate any total return swaps as derivative instruments that qualify for hedge accounting. Gains or losses from changes in fair value are recognized as net gains or losses in the line item "other" in noninterest income, a component of consolidated net income. Also included in our derivative instruments are equity warrant assets and client forward, option and swap contracts, and client interest rate contracts. For further description of these other derivative instruments, refer to Note 2 — “Summary of Significant Accounting Policies" under Part II, Item 8 of our 2021 Form 10-K. Counterparty Credit Risk We are exposed to credit risk if counterparties to our derivative contracts do not perform as expected. We mitigate counterparty credit risk through credit approvals, limits, monitoring procedures and by obtaining collateral, as appropriate. With respect to measuring counterparty credit risk for derivative instruments, we measure the fair value of a group of financial assets and financial liabilities on a net risk basis by counterparty portfolio. The total notional or contractual amounts and fair value of our derivative financial instruments at June 30, 2022 and December 31, 2021 were as follows:
(1)Derivative assets and liabilities are included in "accrued interest receivable and other assets" and "other liabilities", respectively, on our consolidated balance sheets. (2)The amount reported reflects reductions of approximately $400 million and $112 million of derivative assets at June 30, 2022 and December 31, 2021, respectively, reflecting variation margin treated as settlement of the related derivative fair values for legal and accounting purposes as required by central clearing houses. A summary of our derivative activity and the related impact on our consolidated statements of income for the three and six months ended June 30, 2022 and 2021 is as follows:
Balance Sheet Offsetting Certain of our derivative and other financial instruments are subject to enforceable master netting arrangements with our counterparties. These agreements provide for the net settlement of multiple contracts with a single counterparty through a single payment, in a single currency, in the event of default on or termination of any one contract. The following table summarizes our assets subject to enforceable master netting arrangements as of June 30, 2022 and December 31, 2021:
(1)Cash collateral received from our counterparties in relation to market value exposures of derivative contracts in our favor is recorded as a component of “short-term borrowings” on our consolidated balance sheets. The following table summarizes our liabilities subject to enforceable master netting arrangements as of June 30, 2022 and December 31, 2021:
(1)Cash collateral pledged to our counterparties in relation to market value exposures of derivative contracts in a liability position and repurchase agreements are recorded as a component of “cash and cash equivalents" on our consolidated balance sheets.
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Income | Noninterest Income All of the Company's revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. Included below is a summary of noninterest income for the three and six months ended June 30, 2022 and 2021:
Gains on investment securities, net Net gains on investment securities include both gains and losses from our non-marketable and other equity securities, which include public equity securities held as a result of exercised equity warrant assets, gains and losses from sales of our AFS debt securities portfolio, when applicable, and carried interest. Our non-marketable and other equity securities portfolio primarily represents investments in venture capital and private equity funds, SPD-SVB, debt and credit funds, private and public portfolio companies, which include public equity securities held as a result of exercised equity warrant assets, and qualified affordable housing projects. We experience variability in the performance of our non-marketable and other equity securities from period to period, which results in net gains or losses on investment securities (both realized and unrealized). This variability is due to a number of factors, including unrealized changes in the values of our investments, changes in the amount of realized gains from distributions, changes in liquidity events and general economic and market conditions. Unrealized gains from non-marketable and other equity securities for any single period are typically driven by valuation changes. The extent to which any unrealized gains or losses will become realized is subject to a variety of factors, including, among other things, the expiration of certain sales restrictions to which these equity securities may be subject to (e.g., lock-up agreements), changes in prevailing market prices, market conditions, the actual sales or distributions of securities, and the timing of such actual sales or distributions, which, to the extent such securities are managed by our managed funds, are subject to our funds' separate discretionary sales/distributions and governance processes. Carried interest is comprised of preferential allocations of profits recognizable when the return on assets of our individual managed fund of funds and direct venture funds exceeds certain performance targets and is payable to us, as the general partners of the managed funds. The carried interest we earn is often shared with employees, who are also members of the general partner entities. We record carried interest on a quarterly basis by measuring fund performance to date versus the performance target. For our unconsolidated managed funds, carried interest is recorded as gains on investment securities, net. For our consolidated managed funds, it is recorded as a component of net income attributable to noncontrolling interests. Carried interest allocated to others is recorded as a component of net income attributable to noncontrolling interests. Any carried interest paid to us (or our employees) may be subject to reversal to the extent fund performance declines to a level where inception to date carried interest is lower than actual payments made by the funds. The limited partnership agreements for our funds provide that carried interest is generally not paid to the general partners until the funds have provided a full return of contributed capital to the limited partners. Accrued, but unpaid carried interest may be subject to reversal to the extent that the fund performance declines to a level where inception-to-date carried interest is less than prior amounts recognized. Carried interest income is accounted for under an ownership model based on ASC 323 — Equity Method of Accounting and ASC 810 — Consolidation. Our AFS securities portfolio is a fixed income investment portfolio that is managed with the objective of earning an appropriate portfolio yield over the long-term while maintaining sufficient liquidity and credit diversification as well as addressing our asset/liability management objectives. Though infrequent, sales of debt securities in our AFS securities portfolio may result in net gains or losses and are conducted pursuant to the guidelines of our investment policy related to the management of our liquidity position and interest rate risk. Gains on investment securities are recognized outside of the scope of ASC 606 as it explicitly excludes noninterest income earned from our investment-related activities. A summary of gains and losses on investment securities for the three and six months ended June 30, 2022 and 2021 is as follows:
Gains on equity warrant assets, net In connection with negotiating credit facilities and certain other services, we often obtain rights to acquire stock in the form of equity warrant assets in primarily private, venture-backed companies in the technology and life science/healthcare industries. Any changes in fair value from the grant date fair value of equity warrant assets will be recognized as increases or decreases to other assets on our balance sheet and as net gains or losses on equity warrant assets, in noninterest income, a component of consolidated net income. Gains on equity warrant assets are recognized outside of the scope of ASC 606 as it explicitly excludes noninterest income earned from our derivative-related activities. A summary of net gains on equity warrant assets for the three and six months ended June 30, 2022 and 2021 is as follows:
Client investment fees Client investment fees include fees earned from discretionary investment management services for managing clients’ portfolios based on their investment policies, and strategies and objectives. Revenue is recognized on a monthly basis upon completion of our performance obligation and consideration is typically received in the subsequent month. Included in our sweep money market fees are Rule 12(b)-1 fees, revenue sharing and customer transactional-based fees. Rule 12(b)-1 fees and revenue sharing are recognized as earned based on client funds that are invested in the period, typically monthly. Transactional based fees are earned and recognized on fixed income securities when the transaction is executed on the clients' behalf. Amounts paid to third-party service providers are predominantly expensed, such that client investment fees are recorded gross of payments made to third parties. A summary of client investment fees by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
(1)Represents fees earned from investments in third-party money market mutual funds and fixed-income securities managed by SVB Asset Management. (2)Represents fees earned on client investment funds that are maintained at third-party financial institutions and are not recorded on our balance sheet. Wealth management and trust fees Wealth management fees are earned for providing wealth management, retirement plan advisory, family office, financial planning, trust services and other financial advisory services to clients. The Company’s performance obligation under these contracts is satisfied over time as the services are provided. Fees are recognized monthly based on the average monthly, beginning-of-quarter, or, for a small number of clients, end-of-quarter market value of the Private Bank AUM and the applicable fee rate, depending on the terms of the contracts. Fees are also recognized monthly based either on a fixed fee amount or are based on the quarter-end (in arrears) market value of the Private Bank AUM and the applicable fee rate, depending on the terms of the contracts. No performance-based incentives are earned under wealth management contracts. Receivables are recorded on the Consolidated Balance Sheets in the "Accrued interest receivable and other assets" line item. Trust fees are earned when the Company is appointed as trustee for clients. As trustee, the Company administers the client’s trust and manages the assets of the trust, including investments and property. The Company’s performance obligation under these agreements is satisfied over time as the administration and management services are provided. Fees are recognized monthly or, in certain circumstances, quarterly based on a percentage of the market value of the account as outlined in the agreement. Payment frequency is defined in the individual contracts, which primarily stipulate monthly in arrears. No performance-based incentives are earned on trust fee contracts. Receivables are recorded on the Consolidated Balance Sheets in the "Accrued interest receivable and other assets" line item. A summary of wealth management and trust fees by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
Foreign exchange fees Foreign exchange fees represent the income differential between purchases and sales of foreign currency on behalf of our clients, primarily from spot contracts. Foreign exchange spot contracts recognized upon the completion of a single performance obligation are recognized within the scope of ASC 606. Foreign exchange contracts and option premium fees are recognized outside of the scope of ASC 606 as it explicitly excludes noninterest income earned from our derivative-related activities. A summary of foreign exchange fee income by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
Credit card fees Credit card fees include interchange income from credit and debit cards and fees earned from processing transactions for merchants. Interchange income is earned after satisfying our performance obligation of providing nightly settlement services to a payment network. Costs related to rewards programs are recorded when the rewards are earned by the customer and presented as a reduction to interchange fee income. Rewards programs continue to be accounted for under ASC 310 - Receivables. Our performance obligations for merchant service fees are to transmit data and funds between the merchant and the payment network. Credit card interchange and merchant service fees are earned daily upon completion of transaction settlement services. Annual card service fees are recognized on a straight-line basis over a 12-month period and continue to be accounted for under ASC 310 - Receivables. A summary of credit card fees by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
Deposit service charges Deposit service charges include fees earned from performing cash management activities and other deposit account services. Deposit services include, but are not limited to, the following: receivables services, which include merchant services, remote capture, lockbox, electronic deposit capture, and fraud control services. Payment and cash management products and services include wire transfer and automated clearing house payment services to enable clients to transfer funds more quickly, as well as business bill pay, business credit and debit cards, account analysis, and disbursement services. Deposit service charges are recognized over the period in which the related performance obligation is provided, generally on a monthly basis, and are presented in the "Disaggregation of revenue from contracts with customers" tables below. Lending related fees Unused commitment fees, minimum finance fees and unused line fees are recognized as earned on a monthly basis. Fees that qualify for syndication treatment are recognized at the completion of the syndicated loan deal for which the fees were received. Lending related fees are recognized outside of the scope of ASC 606 as it explicitly excludes noninterest income earned from our lending-related activities. A summary of lending related fees by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
Letters of credit and standby letters of credit fees Standby letters of credit represent conditional commitments issued by us on behalf of a client to guarantee the performance of the client to a third party when certain specified future events have occurred. Fees generated from letters of credit and standby letters of credit are deferred as a component of other liabilities and recognized in noninterest income over the commitment period using the straight-line method, based on the likelihood that the commitment being drawn down will be remote. Letters of credit and standby letters of credit fees are recognized outside of the scope of ASC 606 as it explicitly excludes noninterest income earned from our lending related activities. Investment banking revenue We earn investment banking revenue from clients for providing services related to securities underwriting, private placements and advisory services on strategic matters such as mergers and acquisitions. Underwriting fees are attributable to public and private offerings of equity and debt securities and are recognized at the point in time when the offering has been deemed to be completed by the lead manager of the underwriting group. Once the offering is completed, the performance obligation has been satisfied; we recognize the applicable management fee as well as the underwriting fee, net of consideration payable to customers. Private placement fees are recognized at the point in time when the private placement is completed, which is generally when the client accepts capital from the fund raise. Advisory fees from mergers and acquisitions engagements are generally recognized at the point in time when the related transaction is completed. Expenses are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other deal-related expenses are expensed as incurred. We have determined that we act as principal in the majority of these transactions and therefore present expenses gross within other operating expenses. A summary of investment banking revenue by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
Commissions Commissions include commissions received from customers for the execution of agency-based brokerage transactions in listed and over-the-counter equities. The execution of each trade order represents a distinct performance obligation and the transaction price is fixed at the point in time or trade order execution. Trade execution is satisfied at the point in time that the customer has control of the asset and as such, fees are recorded on a trade date basis. The Company also earns subscription fees for market intelligence services that are recognized over the period in which they are delivered. Fees received before the subscription period ends are initially recorded as deferred revenue (a contract liability) in other liabilities in our consolidated balance sheet. Commissions are presented in the "Disaggregation of revenue from contracts with customers" table below. Other Other noninterest income primarily includes income from fund management fees, gains from conversion of convertible debt options and service revenue. Fund management fees are comprised of fees charged directly to our managed funds of funds and direct venture funds. Fund management fees are based upon the contractual terms of the limited partnership agreements and are generally recognized as earned over the specified contract period, which is generally equal to the life of the individual fund. Fund management fees are calculated as a percentage of committed capital and collected in advance and are received quarterly. Fund management fees for certain of our limited partnership agreements are calculated as a percentage of distributions made by the funds and revenue is recorded only at the time of a distribution event. As distribution events are not predetermined for these certain funds, management fees are considered variable and constrained under ASC 606. Gains from conversion of convertible debt options represent unrealized valuation gains on loan conversion derivative assets, and realized gains from the conversion of debt instruments, convertible into a third party’s common stock upon a triggering event such as an IPO. Gains from conversion of convertible debt options are recognized outside of the scope of ASC 606 as it explicitly excludes noninterest income earned from our derivative-related activities. Other service revenue primarily consists of gains or losses from changes in fair value of total return swaps, dividend income on FHLB/FRB stock, correspondent bank rebate income, incentive fees, or performance fees related to carried interest and other fee income. We recognize revenue when our performance obligations are met and record revenues on a daily/monthly, quarterly, semi-annual or annual basis. For event driven revenue sources, we recognize revenue when: (i) persuasive evidence of an arrangement exists, (ii) we have performed the service, provided we have no other remaining obligations to the customer, (iii) the fee is fixed or determinable and (iv) collectability is probable. A summary of other noninterest income by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
(1)Represents the net revaluation of client and internal foreign currency denominated financial instruments. We enter into foreign exchange forward contracts to economically reduce our foreign exchange exposure related to client and internal foreign currency denominated financial instruments. Disaggregation of revenue from contracts with customers The following tables present our revenues from contracts with customers disaggregated by revenue source and segment for the three and six months ended June 30, 2022 and 2021:
(1)Includes certain spot contract commissions, performance fees and correspondent bank rebates. (2)Amounts are accounted for under separate guidance than ASC 606. (3)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
(1)Includes certain spot contract commissions, performance fees and correspondent bank rebates. (2)Amounts are accounted for under separate guidance than ASC 606. (3)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
(1)Includes certain spot contract commissions, performance fees and correspondent bank rebates. (2)Amounts are accounted for under separate guidance than ASC 606. (3)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
(1)Includes certain spot contract commissions, performance fees and correspondent bank rebates. (2)Amounts are accounted for under separate guidance than ASC 606. (3)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items." The timing of revenue recognition may differ from the timing of cash settlements or invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, and unearned revenue when revenue is recognized subsequent to receipt of consideration. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. During the three and six months ended June 30, 2022 and 2021, changes in our contract assets, contract liabilities and receivables were not material. Additionally, revenues recognized during the three and six months ended June 30, 2022 and 2020 that were included in the corresponding contract liability balance at the beginning of the periods were not material.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting We have four reportable segments for management reporting purposes: Silicon Valley Bank, SVB Private, SVB Capital and SVB Securities. The results of our reportable and operating segments are based on our internal management reporting process. We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reporting segments. During the quarter ended March 31, 2022, we reevaluated our segments. Based on this reevaluation, the Premium Wine reporting division was moved from Silicon Valley Bank to the SVB Private segment. These changes were made to reflect the manner in which the Company is organized for purposes of making operating decisions and assessing performance. For the three and six months ended June 30, 2021, prior period balances for our Premium Wine reporting division previously reported in "Silicon Valley Bank" have been recasted to the reportable segment “SVB Private” to properly reflect organizational changes effective January 1, 2022. The reclassification of historical segment information has no effect on the Company's previously reported consolidated balance sheets, statements of income, or cash flows and the change did not have any impact on the determination of the reporting units used to assess impairment under ASC 350, Intangibles - Goodwill and Other. Our Silicon Valley Bank and SVB Private segments primary source of revenue is from net interest income, which is primarily the difference between interest earned on loans, net of FTP, and interest paid on deposits, net of FTP. Accordingly, these segments are reported using net interest income, net of FTP. FTP is an internal measurement framework designed to assess the financial impact of a financial institution’s sources and uses of funds. It is the mechanism by which a funding credit is given for deposits raised, and a funding charge is made for funded loans. FTP is calculated at an instrument level based on account characteristics. We also evaluate performance based on provision for credit losses, noninterest income and noninterest expense, which are presented as components of segment operating profit or loss. In calculating each operating segment’s noninterest expense, we consider the direct costs incurred by the operating segment as well as certain allocated direct costs. As part of this review, we allocate certain corporate overhead costs to a corporate account. We do not allocate income tax expense or the provisions for unfunded credit commitments or HTM securities (included in provision for credit losses) to our segments. Additionally, our management reporting model is predicated on average asset balances; therefore, period-end asset balances are not presented for segment reporting purposes. Changes in an individual client’s primary relationship designation have resulted, and in the future may result, in the inclusion of certain clients in different segments in different periods. Unlike financial reporting, which benefits from the comprehensive structure provided by GAAP, our internal management reporting process is highly subjective, as there is no comprehensive, authoritative guidance for management reporting. Our management reporting process measures the performance of our operating segments based on our internal operating structure, which is subject to change from time to time, and is not necessarily comparable with similar information for other financial services companies. For reporting purposes, SVB Financial Group has four operating segments for which we report our financial information: •Silicon Valley Bank is our commercial bank which offers products and services provided by the Bank and its subsidiaries to commercial clients in key innovation markets. The Bank provides solutions to the financial needs of commercial clients through credit, treasury management, foreign exchange, trade finance, and other services. In addition, the Bank and its subsidiaries offer a variety of investment services and solutions to its clients that enable them to effectively manage their assets. Our commercial bank consists of services provided to clients in the Tech and Healthcare industries, as well as private equity and venture capital firms, and includes clients from international operations in EMEA, Asia and Canada. •SVB Private is our private bank and wealth management segment of the Bank. SVB Private provides a range of personal financial solutions for consumers. Our clients are primarily private equity/venture capital professionals and executive leaders of the innovation companies they support as well as high net worth clients acquired from Boston Private and our premium wine clients. We offer a customized suite of private banking services, including mortgages, home equity lines of credit, restricted and private stock loans, capital call lines of credit, other secured and unsecured lending products and vineyard development loans, as well as planning-based financial strategies, wealth management, family office, financial planning, tax planning and trust services. In addition, we provide real estate secured loans to eligible employees through our EHOP. •SVB Capital is the funds management business of SVB Financial Group, which focuses primarily on venture capital investments. SVB Capital manages funds (primarily venture capital funds) on behalf of third-party limited partners and, on a more limited basis, SVB Financial Group. The SVB Capital family of funds is comprised of direct venture funds that invest in companies and funds of funds that invest in other venture capital funds, as well as debt funds that provide lending and other financing solutions. SVB Capital generates income for the Company primarily from investment returns (including carried interest allocations) and management fees. •SVB Securities is an investment bank focused on the innovation economy and operates as a wholly-owned subsidiary of SVB Financial Group. SVB Securities provides investment banking services across all major sub-sectors of Healthcare and Technology. Healthcare sub-sectors include Biopharma, Digital Health and HealthTech, Healthcare Services, Medical Devices and Tools and Diagnostics. Technology sub-sectors include Consumer Internet, Commerce Enablement and Marketing Software, Digital Infrastructure and Tech-Enabled Services, Education Technology, Enterprise Software, Industrial Technology and FinTech. SVB Securities focuses on four main product and service offerings: Capital Raising, M&A Advisory, Equity Research and Sales and Trading. The following table presents a summary of financial results of our reportable segments along with a reconciliation to our consolidated interim results. Our reportable segment information for the three and six months ended June 30, 2022 and 2021 is as follows:
(1)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' 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 Silicon Valley Bank segment includes direct depreciation and amortization of $12 million and $8 million for the three months ended June 30, 2022 and 2021, respectively and $21 million and $14 million for the six months ended June 30, 2022 and 2021, 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 Securities is goodwill of $174 million and for Private Bank is goodwill of $201 million for the three and six months ended June 30, 2022 and included in the total average assets for SVB Securities is goodwill of $138 million for the three and six months ended June 30, 2021. (7)For the three and six months ended June 30, 2021, prior period balances for our Premium Wine reporting division previously reported in "Silicon Valley Bank" have been allocated to the reportable segment “SVB Private” to properly reflect organizational changes effective January 1, 2022. The reallocation had no impact on the "Total" amount.
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Off-Balance Sheet Arrangements, Guarantees and Other Commitments |
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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 June 30, 2022 and December 31, 2021:
(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)Commercial letters of credit are issued primarily for inventory purchases by a client and are typically short-term in nature. (4)Our allowance for credit losses for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit. Standby Letters of Credit The table below summarizes our standby letters of credit at June 30, 2022. 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.
Deferred fees related to financial and performance standby letters of credit were $20 million at both June 30, 2022 and December 31, 2021. 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 June 30, 2022:
(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 148 funds (primarily venture capital funds) where our ownership interest is generally less than 5.0 percent of the voting interests of each such fund. At June 30, 2022 we had $3 million 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).
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Income Taxes |
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Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are subject to income tax and non-income based taxes by the U.S. federal tax authorities as well as various state and foreign tax authorities. We have identified the U.S. federal and California state jurisdictions as major tax filings. The state of California is currently examining the years 2013-2016. Our U.S. federal tax returns remain open to full examination for 2018 and subsequent tax years. Our California tax returns remain open to full examination for 2017 and subsequent tax years. At June 30, 2022, our unrecognized tax benefit was $38 million, the recognition of which would reduce our income tax expense by $30 million. We are unable to estimate the unrecognized tax benefit that will materially change in the next 12 months. We recognize interest and penalties related to income tax matters as part of income before income taxes. Interest and penalties were not material for the three and six months ended June 30, 2022.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value Measurements Our AFS securities, derivative instruments and certain non-marketable and other equity securities are financial instruments recorded at fair value on a recurring basis. We make estimates regarding valuation of assets and liabilities measured at fair value in preparing our interim consolidated financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (the “exit price”) in an orderly transaction between market participants at the measurement date. There is a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable and on the significance of those inputs in the fair value measurement. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect our estimates about market data and views of market participants. The three levels for measuring fair value are based on the reliability of inputs and are as follows: Level 1 Fair value measurements based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. Assets utilizing Level 1 inputs include U.S. Treasury securities, foreign government debt securities, exchange-traded equity securities, certain marketable securities accounted for under fair value accounting and assets and liabilities related to the deferred compensation plan assumed during the merger with Boston Private. Level 2 Fair value measurements based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly. Valuations for the AFS securities are provided by independent pricing service providers who have experience in valuing these securities and are compared to the average of quoted market prices obtained from independent brokers. We perform a monthly analysis on the values received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The procedures include, but are not limited to, initial and ongoing review of third-party pricing methodologies, review of pricing trends and monitoring of trading volumes. Additional corroboration, such as obtaining a non-binding price from a broker, may be obtained depending on the frequency of trades of the security and the level of liquidity or depth of the market. Prices received from independent brokers represent a reasonable estimate of the fair value and are validated through the use of observable market inputs including comparable trades, yield curve, spreads and, when available, market indices. If we determine that there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly. Below is a summary of the significant inputs used for each class of Level 2 assets and liabilities: U.S. agency debentures: Fair value measurements of U.S. agency debentures are based on the characteristics specific to bonds held, such as issuer name, issuance date, coupon rate, maturity date and any applicable issuer call option features. Valuations are based on market spreads relative to similar term benchmark market interest rates, generally U.S. Treasury securities. Agency-issued MBS: Agency-issued MBS are pools of individual conventional mortgage loans underwritten to U.S. agency standards with similar coupon rates, tenor, and other attributes such as geographic location, loan size and origination vintage. Fair value measurements of these securities are based on observable price adjustments relative to benchmark market interest rates taking into consideration estimated loan prepayment speeds. Agency-issued CMO: Agency-issued CMO are structured into classes or tranches with defined cash flow characteristics and are collateralized by U.S. agency-issued mortgage pass-through securities. Fair value measurements of these securities incorporate similar characteristics of mortgage pass-through securities such as coupon rate, tenor, geographic location, loan size and origination vintage, in addition to incorporating the effect of estimated prepayment speeds on the cash flow structure of the class or tranche. These measurements incorporate observable market spreads over an estimated average life after considering the inputs listed above. Agency-issued CMBS: Fair value measurements of these securities are based on spreads to benchmark market interest rates (usually U.S. Treasury rates or rates observable in the swaps market), prepayment speeds, loan default rate assumptions and loan loss severity assumptions on underlying loans. Foreign exchange forward and option contract assets and liabilities: Fair value measurements of these assets and liabilities are priced based on spot and forward foreign currency rates and option volatility assumptions. Interest rate derivative and interest rate swap assets and liabilities: Fair value measurements of interest rate derivatives and interest rate swaps are priced considering the coupon rate of the fixed leg of the contract and the variable coupon rate on the floating leg of the contract. Valuation is based on both spot and forward rates on the swap yield curve and the credit worthiness of the contract counterparty. Total return swaps: Fair value measurements of total return swaps are based upon the performance of the reference asset, the variable coupon rate and spread of the floating leg of the contract. Other equity securities: Fair value measurements of equity securities of public companies are priced based on quoted market prices less a discount if the securities are subject to certain sales restrictions. Certain sales restriction discounts generally range from 10 percent to 20 percent depending on the duration of the sale restrictions which typically range from to six months. Equity warrant assets (public portfolio): Fair value measurements of equity warrant assets of publicly-traded portfolio companies are valued based on the Black-Scholes option pricing model. The model uses the price of publicly-traded companies (underlying stock price), stated strike prices, warrant expiration dates, the risk-free interest rate and market-observable option volatility assumptions. Level 3 The fair value measurement is derived from valuation techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions we believe market participants would use in pricing the asset. The valuation techniques are consistent with the market approach, income approach and/or the cost approach used to measure fair value. Below is a summary of the valuation techniques used for each class of Level 3 assets: Venture capital and private equity fund investments not measured at net asset value: Fair value measurements are based on consideration of a range of factors including, but not limited to, the price at which the investment was acquired, the term and nature of the investment, local market conditions, values for comparable securities, and as it relates to the private company, the current and projected operating performance, exit strategies and financing transactions subsequent to the acquisition of the investment. The significant unobservable inputs used in the fair value measurement include the information about each portfolio company, including actual and forecasted results, cash position, recent or planned transactions and market comparable companies. Significant changes to any one of these inputs in isolation could result in a significant change in the fair value measurement; however, we generally consider all factors available through ongoing communication with the portfolio companies and venture capital fund managers to determine whether there are changes to the portfolio company or the environment that indicate a change in the fair value measurement. Equity warrant assets (public portfolio): Fair value measurements of equity warrant assets of publicly-traded portfolio companies are valued based on the Black-Scholes option pricing model. The model uses the price of publicly-traded companies (underlying stock price), stated strike prices, warrant expiration dates, the risk-free interest rate and market-observable option volatility assumptions. Modeled asset values are further adjusted by applying a discount of up to 20 percent for certain warrants that have certain sales restrictions or other features that indicate a discount to fair value is warranted. As sale restrictions are lifted, discounts are adjusted downward to zero once all restrictions expire or are removed. Equity warrant assets (private portfolio): Fair value measurements of equity warrant assets of private portfolio companies are priced based on a Black-Scholes option pricing model to estimate the asset value by using stated strike prices, option expiration dates, risk-free interest rates and option volatility assumptions. Option volatility assumptions used in the Black-Scholes model are based on public market indices whose members operate in similar industries as companies in our private company portfolio. Option expiration dates are modified to account for estimates to actual life relative to stated expiration. Overall model asset values are further adjusted for a general lack of liquidity due to the private nature of the associated underlying company. There is a direct correlation between changes in the volatility and remaining life assumptions in isolation and the fair value measurement while there is an inverse correlation between changes in the liquidity discount assumption and the fair value measurement. Contingent conversion rights (public portfolio): Fair value measurements of contingent conversion rights of publicly-traded portfolio companies are valued based on the Black-Scholes option pricing model. The model uses the price of publicly-traded companies (underlying stock price), stated strike prices, warrant expiration dates, the risk-free interest rate and market-observable option volatility assumptions. Modeled asset values are further adjusted by applying a discount of up to 20 percent for certain conversion rights that have certain sales restrictions or other features that indicate a discount to fair value is warranted. As sale restrictions are lifted, discounts are adjusted downward to zero once all restrictions expire or are removed. Contingent conversion rights (private portfolio): Fair value measurements are based on consideration of a range of factors including, but not limited to, actual and forecasted enterprise values, probability of conversion event occurring and limitations and conversion pricing outlined in the convertible debt agreement. Additionally, we have ongoing communication with the portfolio companies and relationship teams, to determine whether there is a material change in fair value. We use company provided valuation reports, if available, to support our valuation assumptions. These factors are specific to each portfolio company and a weighted average or range of values of the unobservable inputs is not meaningful. The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2022:
The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2021:
The following table presents additional information about Level 3 assets measured at fair value on a recurring basis for the three and six months ended June 30, 2022 and 2021:
(1)Realized and unrealized gains (losses) are recorded in the line item “Gains on equity warrant assets, net," a component of noninterest income. (2)Unrealized gains and losses are recorded in the line item "Other noninterest income," a component of noninterest income. The following table presents the amount of net unrealized gains and losses included in earnings attributable to Level 3 assets still held at June 30, 2022 and 2021:
(1)Unrealized gains and losses are recorded in the line item “Gains on equity warrant assets, net," a component of noninterest income. (2)Unrealized gains and losses are recorded in the line item "Other noninterest income," a component of noninterest income. The extent to which any unrealized gains or losses will become realized is subject to a variety of factors, including, among other things, the expiration of current sales restrictions to which these securities are subject, the actual sales of securities and the timing of such actual sales. The following table presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurements at June 30, 2022 and December 31, 2021. We have not included in this table our venture capital and private equity fund investments (fair value accounting) as we use net asset value per share (as obtained from the general partners of the investments) as a practical expedient to determine fair value.
(1)We adjust quoted market prices of public companies, which are subject to certain sales restrictions. Sales restriction discounts generally range from 10 percent to 20 percent depending on the duration of the sales restrictions, which typically range from to six months. (2)Our marketability discount is applied to all private company warrants to account for a general lack of liquidity due to the private nature of the associated underlying company. The quantitative measure used is based upon various option-pricing models. On a quarterly basis, a sensitivity analysis is performed on our marketability discount. (3)We adjust the contractual remaining term of private company warrants based on our estimate of the actual remaining life, which we determine by utilizing historical data on terminations and exercises. At June 30, 2022, the weighted average contractual remaining term was 6.3 years, compared to our estimated remaining life of 2.5 years. On a quarterly basis, a sensitivity analysis is performed on our remaining life assumption. (4)In determining the fair value of our private contingent conversion rights portfolio (not valued using the Black-Scholes model), we evaluate a variety of factors related to each underlying private portfolio company including, but not limited to, actual and forecasted enterprise values, the probability of a conversion event occurring and limitations and conversion pricing outlined in the convertible debt agreement. Additionally, we have ongoing communication with the portfolio companies and relationship teams, to determine whether there is a material change in fair value. We use company provided valuation reports, if available, to support our valuation assumptions. These factors are specific to each portfolio company and a weighted average or range of values of the unobservable inputs is not meaningful. For the three and six months ended June 30, 2022 and 2021, we did not have any transfers between Level 3 and Level 1. All transfers from Level 3 to Level 2 for the three and six months ended June 30, 2022 and 2021 were due to the transfer of equity warrant assets from our private portfolio to our public portfolio (see our Level 3 reconciliation above). Financial Instruments not Carried at Fair Value FASB guidance over financial instruments requires that we disclose estimated fair values for our financial instruments not carried at fair value. The following fair value hierarchy table presents the estimated fair values of our financial instruments that are not carried at fair value at June 30, 2022 and December 31, 2021:
(1)Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits. Investments in Entities that Calculate Net Asset Value Per Share FASB guidance over certain fund investments requires that we disclose the fair value of funds, significant investment strategies of the investees, redemption features of the investees, restrictions on the ability to sell investments, estimate of the period of time over which the underlying assets are expected to be liquidated by the investee and unfunded commitments related to the investments. Our investments in debt funds and venture capital and private equity fund investments generally cannot be redeemed. Alternatively, we expect distributions, if any, to be received primarily through IPO and M&A activity of the underlying assets of the fund. Subject to applicable requirements under the Volcker Rule, we do not have any plans to sell any of these fund investments. If we decide to sell these investments in the future, the investee fund’s management must approve of the buyer before the sale of the investments can be completed. The fair values of the fund investments have been estimated using the net asset value per share of the investments, adjusted for any differences between our measurement date and the date of the fund investment’s net asset value by using the most recently available financial information from the investee general partner, for example March 31st for our June 30th consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period. The following table is a summary of the estimated fair values of these investments and remaining unfunded commitments for each major category of these investments as of June 30, 2022:
(1)Venture capital and private equity fund investments within non-marketable securities (fair value accounting) include investments made by our managed funds of funds and one of our direct venture funds (consolidated VIEs) and investments in venture capital and private equity fund investments (unconsolidated VIEs). Collectively, these investments in venture capital and private equity funds are primarily in U.S. and global technology and life science/healthcare companies. Included in the fair value and unfunded commitments of fund investments under fair value accounting are $82 million and $2 million, respectively, attributable to noncontrolling interests. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of terms of the funds. (2)Venture capital and private equity fund investments, debt funds, and other fund investments within non-marketable securities (equity method accounting) include funds that invest in or lend money to primarily U.S. and global technology and life science/healthcare companies. It is estimated that we will receive distributions from the funds over the next 5 to 8 years, depending on the age of the funds and any potential extensions of the terms of the funds.
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Legal Matters |
6 Months Ended |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters Certain lawsuits and claims arising in the ordinary course of business have been filed or are pending against us and/or our affiliates, and we may from time to time be involved in other legal or regulatory proceedings. In accordance with applicable accounting guidance, we establish accruals for all such matters, including expected settlements, when we believe it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. When a loss contingency is not both probable and estimable, we do not establish an accrual. Any such loss estimates are inherently uncertain, based on currently available information and are subject to management’s judgment and various assumptions. Due to the inherent subjectivity of these estimates and unpredictability of outcomes of legal proceedings, any amounts accrued may not represent the ultimate resolution of such matters. To the extent we believe any potential loss relating to such matters may have a material impact on our liquidity, consolidated financial position, results of operations, and/or our business as a whole and is reasonably possible but not probable, we aim to disclose information relating to such potential loss. We also aim to disclose information relating to any material potential loss that is probable but not reasonably estimable. In such cases, where reasonably practicable, we aim to provide an estimate of loss or range of potential loss. No disclosures are generally made for any loss contingencies that are deemed to be remote. Based upon information available to us, our review of lawsuits and claims filed or pending against us to date and consultation with our outside legal counsel, we have not recognized a material accrual liability for any such matters, nor do we currently expect that these matters will result in a material liability to the Company. However, the outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of such matters currently pending or threatened could have an unanticipated material adverse effect on our liquidity, consolidated financial position, results of operations, and/or our business as a whole, in the future.
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Related Parties |
6 Months Ended |
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Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | Related PartiesWe have no material related party transactions requiring disclosure. In the ordinary course of business, the Bank may extend credit to related parties, including executive officers, directors, principal shareholders and their related interests. Additionally, we provide real estate secured loans to eligible employees through our EHOP. For additional details, see Note 19 — “Employee Compensation and Benefit Plans" under Part II, Item 8 of our 2021 Form 10-K. |
Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsDuring July 2022, we terminated all of our last of layer AFS fair value hedges to reduce asset sensitivity. This termination resulted in a $313 million gain which will be amortized into interest income over the life of the underlying hedged securities, which is approximately 7 years. |
Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | SVB Financial Group is a diversified financial services company, as well as a bank holding company and a financial holding company. SVB Financial was incorporated in the state of Delaware in March 1999. Through our various subsidiaries and divisions, we offer a diverse set of banking and financial products and services to support our clients of all sizes and stages throughout their life cycles. In these notes to our unaudited interim consolidated financial statements, when we refer to “SVB,” “SVB Financial Group,” “SVBFG," the “Company,” “we,” “our,” “us” or use similar words, we mean SVB Financial Group and all of its subsidiaries collectively, including Silicon Valley Bank (the “Bank”), unless the context requires otherwise. When we refer to “SVB Financial” or the “Parent” we are referring only to the parent company, SVB Financial Group (not including subsidiaries).The accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature that are, in the opinion of management, necessary to fairly present our financial position, results of operations and cash flows in accordance with GAAP. Such unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of results to be expected for any future periods. These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). |
Use of Estimates | The preparation of unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates may change as new information is obtained. Among the more significant estimates are those that relate to: 1) ACL for loans and for unfunded credit commitments, 2) valuation of non-marketable and other equity securities, 3) valuation of equity warrant assets, 4) goodwill, intangible assets and other purchase accounting related adjustments, and 5) income taxes. |
Principles of Consolidation and Presentation | Our unaudited interim consolidated financial statements include the accounts of SVB Financial Group and consolidated entities. All significant intercompany accounts and transactions with consolidated entities have been eliminated. For a further description of our accounting policies regarding consolidation refer to Consolidated Financial Statements and Supplementary Data — Note 2 — “Summary of Significant Accounting Policies” under Part II, Item 8 of our 2021 Form 10-K. |
Reclassifications | Certain prior period amounts have been reclassified to conform to current period presentation. Changes include the presentation of our table summarizing the activity relating to our ACL for loans as a result of the acquisition of Boston Private, the consolidation of certain line items in our Consolidated Statement of Stockholders' Equity (unaudited), changes to our reportable segments and consolidation of certain line items in our Consolidated Statement of Cash Flows (unaudited) and accrued interest receivable and other assets and other liabilities tables within "Consolidated Financial Condition" under Part 1, Item 2 of this report. |
Stockholders' Equity and EPS (Tables) |
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Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the items reclassified out of AOCI into the Consolidated Statements of Income (unaudited) for the three and six months ended June 30, 2022 and 2021:
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The table below summarizes the activity relating to net gains and losses on our cash flow hedges included in AOCI for the three and six months ended June 30, 2022 and 2021. Over the next 12 months, we expect that approximately $49 million in AOCI at June 30, 2022, related to unrealized gains will be reclassified out of AOCI and recognized in net income.
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Reconciliation of Basic EPS to Diluted EPS | The following is a reconciliation of basic EPS to diluted EPS for the three and six months ended June 30, 2022 and 2021:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share | The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation due to the antidilutive effect for the three and six months ended June 30, 2022 and 2021:
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Schedule of Stock by Class | The following table summarizes our preferred stock at June 30, 2022:
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Schedule of Stockholders Equity | The following table summarizes the changes in our consolidated equity for the three months ended June 30, 2022 and 2021:
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Variable Interest Entities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments In Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The following table presents the carrying amounts and classification of variable interests in consolidated and unconsolidated VIEs as of June 30, 2022 and December 31, 2021:
(1) Included in our unconsolidated non-marketable and other equity securities portfolio at June 30, 2022 and December 31, 2021 are investments in qualified affordable housing projects of $1.1 billion and $954 million, respectively, and related other liabilities consisting of unfunded commitments of $614 million and $482 million, respectively. (2) Included in our unconsolidated accrued interest receivable and other assets are investments in statutory trusts for junior subordinated debt and included in long term debt previously issued by Boston Private and assumed in the acquisition of $6 million and $90 million, respectively, at June 30, 2022 and December 31, 2021.
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Cash and Cash Equivalents (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table details our cash and cash equivalents at June 30, 2022 and December 31, 2021:
(1)At June 30, 2022 and December 31, 2021, securities purchased under agreements to resell were collateralized by U.S. Treasury securities and U.S. agency securities with aggregate fair values of $554 million and $620 million, respectively. None of these securities were sold or repledged as of June 30, 2022 and December 31, 2021.
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Investment Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale | The major components of our AFS investment securities portfolio at June 30, 2022 and December 31, 2021 are as follows:
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Activity of Available-for-Sale Securities | The following table summarizes sale activity of AFS securities during the three and six months ended June 30, 2022 and 2021 as recorded in the line item “Gains on investment securities, net," a component of noninterest income:
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Summary of Unrealized Losses on Available for Sale Securities | The following tables summarize our AFS securities in an unrealized loss position for which an ACL has not been recorded and summarized into categories of AFS securities that were in an unrealized loss for position for less than 12 months, or 12 months or longer, as of June 30, 2022 and December 31, 2021:
(1)As of June 30, 2022, we identified a total of 767 investments that were in unrealized loss positions with 143 investments in an unrealized loss position for a period of time greater than 12 months. Based on our analysis of the securities in an unrealized loss position as of June 30, 2022, the decline in value is unrelated to credit loss and is related to changes in market interest rates since purchase and therefore changes in value for securities are included in other comprehensive income. Market valuations and credit loss analyses on assets in the AFS securities portfolio are reviewed and monitored on a quarterly basis. As of June 30, 2022, we do not intend to sell any of our securities in an unrealized loss position prior to recovery of our amortized cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our amortized cost basis. None of the investments in our AFS securities portfolio were past due as of June 30, 2022.
(1)As of December 31, 2021, we identified a total of 475 investments that were in unrealized loss positions, of which 4 investments are in an unrealized loss position for a period of time greater than 12 months. None of the investments in our AFS securities portfolio were past due as of December 31, 2021.
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Summary of Remaining Contractual Principal Maturities and Fully Taxable Equivalent Yields on Securities | The following table summarizes the fixed income securities, carried at fair value, classified as AFS as of June 30, 2022 by the remaining contractual principal maturities. For U.S. Treasury securities, U.S. agency debentures and foreign government debt securities, the expected maturity is the actual contractual maturity of the notes. Expected maturities for MBS may differ significantly from their contractual maturities because mortgage borrowers have the right to prepay outstanding loan obligations with or without penalties. MBS classified as AFS typically have original contractual maturities from 10 to 30 years whereas expected average lives of these securities tend to be significantly shorter and vary based upon structure and prepayments in lower interest rate environments.
based upon structure and prepayments in lower interest rate environments; however, we expect to collect substantially all of the recorded investment on these securities.
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Held-to-maturity Securities | The components of our HTM investment securities portfolio at June 30, 2022 and December 31, 2021 are as follows:
(1) Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.
(1) Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.
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Debt Securities, Held-to-maturity, Credit Quality Indicator | On a quarterly basis, management monitors the credit quality for HTM securities through the use of standard credit ratings. The following table summarizes our amortized cost of HTM securities aggregated by credit quality indicator at June 30, 2022 and December 31, 2021:
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Schedule of Nonmarketable and Other Securities | The major components of our non-marketable and other equity securities portfolio at June 30, 2022 and December 31, 2021 are as follows:
(1)The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and our ownership percentage of each fund at June 30, 2022 and December 31, 2021 (fair value accounting):
(2)The carrying value represents investments in 142 and 150 funds (primarily venture capital funds) at June 30, 2022 and December 31, 2021, respectively, where our ownership interest is typically less than 5% of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships operating activities and financial policies. We carry our unconsolidated venture capital and private equity fund investments at fair value based on the fund investments' net asset values per share as obtained from the general partners of the investments. For each fund investment, we adjust the net asset value per share for differences between our measurement date and the date of the fund investment’s net asset value by using the most recently available financial information from the investee general partner, for example March 31st for our June 30th consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period. (3)These investments include direct equity investments in private companies. The carrying value is based on the price at which the investment was acquired plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, exit strategies, financing transactions subsequent to the acquisition of the investment and a discount for certain investments that have lock-up restrictions or other features that indicate a discount to fair value is warranted. The following table shows the changes to the carrying amount of other investments without a readily determinable fair value for the six months ended June 30, 2022:
(4)Investments classified as other equity securities (fair value accounting) represent shares held in public companies as a result of exercising public equity warrant assets and direct equity investments in public companies held by our consolidated funds. Changes in equity securities measured at fair value are recognized through net income. (5)The following table shows the carrying value and our ownership percentage of each investment at June 30, 2022 and December 31, 2021 (equity method accounting):
(i)Our ownership includes direct ownership interest of 1.3 percent and indirect ownership interest of 3.8 percent through our investments in Strategic Investors Fund II, LP. (ii)Our ownership includes direct ownership interest of 11.5 percent and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of 4.0 percent. (6)The following table presents the balances of our investments in qualified affordable housing projects and related unfunded commitments included as a component of “Other liabilities” on our consolidated balance sheets at June 30, 2022 and December 31, 2021:
The following table presents other information relating to our investments in qualified affordable housing projects for the three and six months ended June 30, 2022 and 2021:
(i)All investments are amortized using the proportional amortization method and amortization expense is included in the provision for income taxes.
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Gain Loss On Investment Securities | The following table presents the net gains and losses on non-marketable and other equity securities for the three and six months ended June 30, 2022 and 2021 as recorded in the line item “Gains on investment securities, net," a component of noninterest income:
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Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | The composition of loans at amortized cost basis broken out by class of financing receivable at June 30, 2022 and December 31, 2021 is presented in the following table:
(1) Total loans at amortized cost is net of unearned income, deferred fees and costs, and net unamortized premiums and discounts of $222 million and $250 million at June 30, 2022 and December 31, 2021, respectively. (2) Included within our total loan portfolio are credit card loans of $619 million and $583 million at June 30, 2022 and December 31, 2021, respectively. (3) Included within our total loan portfolio are construction loans of $443 million and $367 million at June 30, 2022 and December 31, 2021, respectively.
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Credit Quality Indicators, Broken out by Portfolio Segment and Class of Financing Receivables | The following tables summarize the credit quality indicators, broken out by class of financing receivable and vintage year, as of June 30, 2022 and December 31, 2021:
(1) These amounts consist of fees and clearing items that have not yet been allocated at the loan level.
(1) These amounts consist of fees and clearing items that have not yet been allocated at the loan level.
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Activity in Allowance for Loan Losses Broken out by Portfolio Segment | The following tables summarize the activity relating to our ACL for loans for the three and six months ended June 30, 2022 and 2021, broken out by portfolio segment:
The following table summarizes the activity relating to our ACL for unfunded credit commitments for the three and six months ended June 30, 2022 and 2021:
(1)The “ACL: unfunded credit commitments” is included as a component of “other liabilities” on our unaudited interim consolidated balance sheets. See Note 11 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of this report for additional disclosures related to our commitments to extend credit.
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Financing Receivable, Past Due | The following table summarizes the aging of our loans broken out by class of financing receivable as of June 30, 2022 and December 31, 2021:
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Financing Receivable, Nonaccrual | The following table summarizes our nonaccrual loans with no allowance for credit loss at June 30, 2022 and December 31, 2021:
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Summary of Loans Modified in Troubled Debt Restructurings ("TDRs") by Risk-based Segment | The following table summarizes our loans modified in TDRs, broken out by class of financing receivable at June 30, 2022 and December 31, 2021:
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Recorded Investment in Loans Modified in TDRs | The following table summarizes the recorded investment in loans modified in TDRs, broken out by class of financing receivable, for modifications made during the three and six months ended June 30, 2022 and 2021:
(1)There were no partial charge-offs for the three months ended June 30, 2022, and $5 million of partial charge-offs for the six months then ended. There were $6 million and $7 million of partial charge-offs for the three and six months ended June 30, 2021, respectively.
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Activity Relating to ACL for Unfunded Credit Commitments | The following tables summarize the activity relating to our ACL for loans for the three and six months ended June 30, 2022 and 2021, broken out by portfolio segment:
The following table summarizes the activity relating to our ACL for unfunded credit commitments for the three and six months ended June 30, 2022 and 2021:
(1)The “ACL: unfunded credit commitments” is included as a component of “other liabilities” on our unaudited interim consolidated balance sheets. See Note 11 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of this report for additional disclosures related to our commitments to extend credit.
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The components of net other intangible assets were as follows:
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Finite-lived Intangible Assets Amortization Expense | For the six months ended June 30, 2022, we recorded amortization expense of $12 million. Assuming no future impairments of other intangible assets or additional acquisitions or dispositions, the following table presents the Company's future expected amortization expense for other intangible assets that will continue to be amortized as of June 30, 2022:
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Derivative Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table summarizes the amortized cost basis of hedged assets that are designated and qualify as fair value hedges and the cumulative amount of fair value hedging adjustments included in the carrying value that have been recorded on our unaudited interim consolidated balance sheets as of June 30, 2022:
(1)These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At June 30, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $9.3 billion, the amounts of the designated hedged items was $5.9 billion and the cumulative basis adjustments associated with these hedging relationships was $313 million. (2)The balance includes $5 million of hedging adjustments on discontinued hedging relationships at June 30, 2022.
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Total Notional or Contractual Amounts, Fair Value, Collateral and Net Exposure of Derivative Financial Instruments | The total notional or contractual amounts and fair value of our derivative financial instruments at June 30, 2022 and December 31, 2021 were as follows:
(1)Derivative assets and liabilities are included in "accrued interest receivable and other assets" and "other liabilities", respectively, on our consolidated balance sheets. (2)The amount reported reflects reductions of approximately $400 million and $112 million of derivative assets at June 30, 2022 and December 31, 2021, respectively, reflecting variation margin treated as settlement of the related derivative fair values for legal and accounting purposes as required by central clearing houses.
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Summary of Derivative Activity and Related Impact on Consolidated Statements of Income | A summary of our derivative activity and the related impact on our consolidated statements of income for the three and six months ended June 30, 2022 and 2021 is as follows:
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Offsetting Assets | The following table summarizes our assets subject to enforceable master netting arrangements as of June 30, 2022 and December 31, 2021:
(1)Cash collateral received from our counterparties in relation to market value exposures of derivative contracts in our favor is recorded as a component of “short-term borrowings” on our consolidated balance sheets.
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Offsetting Liabilities | The following table summarizes our liabilities subject to enforceable master netting arrangements as of June 30, 2022 and December 31, 2021:
(1)Cash collateral pledged to our counterparties in relation to market value exposures of derivative contracts in a liability position and repurchase agreements are recorded as a component of “cash and cash equivalents" on our consolidated balance sheets.
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Noninterest Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Noninterest Income | Included below is a summary of noninterest income for the three and six months ended June 30, 2022 and 2021:
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Components of Gains and Losses (Realized and Unrealized) on Investment Securities | A summary of gains and losses on investment securities for the three and six months ended June 30, 2022 and 2021 is as follows:
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Components of Gains on Equity Warrant Assets | A summary of net gains on equity warrant assets for the three and six months ended June 30, 2022 and 2021 is as follows:
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Components of Client Investment Fees | A summary of client investment fees by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
(1)Represents fees earned from investments in third-party money market mutual funds and fixed-income securities managed by SVB Asset Management. (2)Represents fees earned on client investment funds that are maintained at third-party financial institutions and are not recorded on our balance sheet.
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Components of Wealth Management and Trust Fees | A summary of wealth management and trust fees by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
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Components of Foreign Exchange Fees | A summary of foreign exchange fee income by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
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Components of Credit Card Fees | A summary of credit card fees by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
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Components of Lending Related Fees | A summary of lending related fees by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
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Schedule of Investment Banking Revenue | A summary of investment banking revenue by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
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Summary of Other Noninterest Income | A summary of other noninterest income by instrument type for the three and six months ended June 30, 2022 and 2021 is as follows:
(1)Represents the net revaluation of client and internal foreign currency denominated financial instruments. We enter into foreign exchange forward contracts to economically reduce our foreign exchange exposure related to client and internal foreign currency denominated financial instruments.
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Disaggregation of Revenue | The following tables present our revenues from contracts with customers disaggregated by revenue source and segment for the three and six months ended June 30, 2022 and 2021:
(1)Includes certain spot contract commissions, performance fees and correspondent bank rebates. (2)Amounts are accounted for under separate guidance than ASC 606. (3)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
(1)Includes certain spot contract commissions, performance fees and correspondent bank rebates. (2)Amounts are accounted for under separate guidance than ASC 606. (3)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
(1)Includes certain spot contract commissions, performance fees and correspondent bank rebates. (2)Amounts are accounted for under separate guidance than ASC 606. (3)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
(1)Includes certain spot contract commissions, performance fees and correspondent bank rebates. (2)Amounts are accounted for under separate guidance than ASC 606. (3)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Our reportable segment information for the three and six months ended June 30, 2022 and 2021 is as follows:
(1)Silicon Valley Bank’s, SVB Capital’s and SVB Securities' 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 Silicon Valley Bank segment includes direct depreciation and amortization of $12 million and $8 million for the three months ended June 30, 2022 and 2021, respectively and $21 million and $14 million for the six months ended June 30, 2022 and 2021, 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 Securities is goodwill of $174 million and for Private Bank is goodwill of $201 million for the three and six months ended June 30, 2022 and included in the total average assets for SVB Securities is goodwill of $138 million for the three and six months ended June 30, 2021. (7)For the three and six months ended June 30, 2021, prior period balances for our Premium Wine reporting division previously reported in "Silicon Valley Bank" have been allocated to the reportable segment “SVB Private” to properly reflect organizational changes effective January 1, 2022. The reallocation had no impact on the "Total" amount.
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Off-Balance Sheet Arrangements, Guarantees and Other Commitments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure Off Balance Sheet Arrangements Guarantees And Other Commitments Additional Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Information Related to Commitments to Extend Credit (Excluding Letters of Credit) | The following table summarizes information related to our commitments to extend credit at June 30, 2022 and December 31, 2021:
(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)Commercial letters of credit are issued primarily for inventory purchases by a client and are typically short-term in nature. (4)Our allowance for credit losses for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit.
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Summary of Commercial and Standby Letters of Credit | The table below summarizes our standby letters of credit at June 30, 2022. 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.
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Total Capital Commitments, Unfunded Capital Commitments, and Ownership in Each Fund | The following table details our total capital commitments, unfunded capital commitments, and our ownership percentage in each fund at June 30, 2022:
(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 148 funds (primarily venture capital funds) where our ownership interest is generally less than 5.0 percent of the voting interests of each such fund.
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy Tables Present Information about Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2022:
The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2021:
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Additional Information about Level 3 Assets Measured at Fair Value on a Recurring Basis | The following table presents additional information about Level 3 assets measured at fair value on a recurring basis for the three and six months ended June 30, 2022 and 2021:
(1)Realized and unrealized gains (losses) are recorded in the line item “Gains on equity warrant assets, net," a component of noninterest income. (2)Unrealized gains and losses are recorded in the line item "Other noninterest income," a component of noninterest income.
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Unrealized Gains Included in Earnings Attributable to Level 3 Assets Held | The following table presents the amount of net unrealized gains and losses included in earnings attributable to Level 3 assets still held at June 30, 2022 and 2021:
(1)Unrealized gains and losses are recorded in the line item “Gains on equity warrant assets, net," a component of noninterest income. (2)Unrealized gains and losses are recorded in the line item "Other noninterest income," a component of noninterest income.
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Quantitative Information About Significant Unobservable Inputs | The following table presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurements at June 30, 2022 and December 31, 2021. We have not included in this table our venture capital and private equity fund investments (fair value accounting) as we use net asset value per share (as obtained from the general partners of the investments) as a practical expedient to determine fair value.
(1)We adjust quoted market prices of public companies, which are subject to certain sales restrictions. Sales restriction discounts generally range from 10 percent to 20 percent depending on the duration of the sales restrictions, which typically range from to six months. (2)Our marketability discount is applied to all private company warrants to account for a general lack of liquidity due to the private nature of the associated underlying company. The quantitative measure used is based upon various option-pricing models. On a quarterly basis, a sensitivity analysis is performed on our marketability discount. (3)We adjust the contractual remaining term of private company warrants based on our estimate of the actual remaining life, which we determine by utilizing historical data on terminations and exercises. At June 30, 2022, the weighted average contractual remaining term was 6.3 years, compared to our estimated remaining life of 2.5 years. On a quarterly basis, a sensitivity analysis is performed on our remaining life assumption. (4)In determining the fair value of our private contingent conversion rights portfolio (not valued using the Black-Scholes model), we evaluate a variety of factors related to each underlying private portfolio company including, but not limited to, actual and forecasted enterprise values, the probability of a conversion event occurring and limitations and conversion pricing outlined in the convertible debt agreement. Additionally, we have ongoing communication with the portfolio companies and relationship teams, to determine whether there is a material change in fair value. We use company provided valuation reports, if available, to support our valuation assumptions. These factors are specific to each portfolio company and a weighted average or range of values of the unobservable inputs is not meaningful.
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Summary of Estimated Fair Values of Financial Instruments Not Carried at Fair Value | The following fair value hierarchy table presents the estimated fair values of our financial instruments that are not carried at fair value at June 30, 2022 and December 31, 2021:
(1)Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits.
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Summary of Estimated Fair Values of Investments and Remaining Unfunded Commitments for Each Major Category of Investments | The following table is a summary of the estimated fair values of these investments and remaining unfunded commitments for each major category of these investments as of June 30, 2022:
(1)Venture capital and private equity fund investments within non-marketable securities (fair value accounting) include investments made by our managed funds of funds and one of our direct venture funds (consolidated VIEs) and investments in venture capital and private equity fund investments (unconsolidated VIEs). Collectively, these investments in venture capital and private equity funds are primarily in U.S. and global technology and life science/healthcare companies. Included in the fair value and unfunded commitments of fund investments under fair value accounting are $82 million and $2 million, respectively, attributable to noncontrolling interests. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of terms of the funds. (2)Venture capital and private equity fund investments, debt funds, and other fund investments within non-marketable securities (equity method accounting) include funds that invest in or lend money to primarily U.S. and global technology and life science/healthcare companies. It is estimated that we will receive distributions from the funds over the next 5 to 8 years, depending on the age of the funds and any potential extensions of the terms of the funds.
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Stockholders' Equity and EPS - Activity Related to Net Gains on Cash Flow Hedges in AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cash flow hedge gains expected to reclassified out of AOCI over next 12 months | $ 49 | |||
Balance, beginning of period, net of tax | $ 16,360 | $ 10,121 | 16,609 | $ 8,433 |
Balance, end of period, net of tax | 16,276 | 11,967 | 16,276 | 11,967 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | 72 | 118 | 83 | 129 |
Net realized (gain) loss reclassified to net income, net of tax | (10) | (11) | (21) | (22) |
Balance, end of period, net of tax | $ 62 | $ 107 | $ 62 | $ 107 |
Stockholders' Equity and EPS - Reconciliation of Basic EPS to Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Numerator: | ||||
Net income available to common stockholders | $ 333 | $ 502 | $ 805 | $ 1,034 |
Denominator: | ||||
Weighted average common shares outstanding-basic (in shares) | 58,935 | 54,353 | 58,868 | 53,272 |
Weighted average common shares outstanding—diluted (in shares) | 59,454 | 55,152 | 59,530 | 54,116 |
Earnings per common share: | ||||
Basic (dollars per share) | $ 5.65 | $ 9.23 | $ 13.68 | $ 19.40 |
Diluted (dollars per share) | $ 5.60 | $ 9.09 | $ 13.52 | $ 19.10 |
Stock options and ESPP | ||||
Denominator: | ||||
Weighted average effect of dilutive securities (in shares) | 192 | 272 | 221 | 274 |
Restricted stock units and awards | ||||
Denominator: | ||||
Weighted average effect of dilutive securities (in shares) | 327 | 527 | 441 | 570 |
Stockholders' Equity and EPS - Common Shares Excluded from Diluted EPS Calculation as They Were Deemed to be Anti-Dilutive (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share calculation | 519 | 36 | 176 | 62 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share calculation | 115 | 36 | 83 | 18 |
Restricted stock units and awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share calculation | 404 | 0 | 93 | 44 |
Variable Interest Entities - Additional Information (Details) $ in Millions |
Jun. 30, 2022
USD ($)
entity
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Dec. 31, 2021
USD ($)
|
---|---|---|
Investments In Variable Interest Entities [Abstract] | ||
Number of consolidated entities | entity | 4 | |
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss in unconsolidated VIEs | $ 1,356 | $ 1,233 |
Total assets | 214,389 | 211,478 |
Consolidated | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss in unconsolidated VIEs | 837 | |
Total assets | 859 | 812 |
Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Total assets | $ 1,362 | $ 1,239 |
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Cash and due from banks | $ 1,801 | $ 2,201 |
Interest bearing deposits with the Federal Reserve Bank | 7,827 | 5,686 |
Interest bearing deposits with other institutions | 5,146 | 5,773 |
Securities purchased under agreements to resell | 544 | 607 |
Other short-term investment securities | 80 | 352 |
Total cash and cash equivalents | $ 15,398 | $ 14,619 |
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Footnote Information) (Details) - USD ($) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Cash and Cash Equivalents [Abstract] | ||
Fair value of securities purchased under agreements to resell | $ 554,000,000 | $ 620,000,000 |
Securities received as collateral, amount repledged and sold | $ 0 | $ 0 |
Investment Securities - Activity of Available-for-Sale Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Sales proceeds | $ 3,412 | $ 0 | $ 8,511 | $ 0 |
Gross realized gains | 2 | 0 | 146 | 0 |
Gross realized losses | (3) | 0 | (98) | 0 |
Net realized gains/(losses) | $ (1) | $ 0 | $ 48 | $ 0 |
Investment Securities - Allowance for Credit Losses for HTM Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
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Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||||
Beginning Balance (less than $1 million for 12/31/2020) | $ 1 | $ 7 | $ 1 | |
(Reduction of) Provision for credit losses | 4 | (1) | 5 | |
Ending Balance | $ 5 | 6 | $ 5 | |
Accrued interest receivable | 222 | $ 171 | ||
Accrued interest receivable and other assets | Held-to-maturity Securities | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||||
Accrued interest receivable | 220 | $ 225 | ||
Municipal bonds and notes | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||||
Beginning Balance (less than $1 million for 12/31/2020) | 1 | |||
Ending Balance | 1 | |||
Corporate bonds | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||||
Beginning Balance (less than $1 million for 12/31/2020) | 6 | |||
Ending Balance | $ 5 |
Investment Securities - Changes to Carrying Amount of Other Investments without Readily Determinable Fair Value (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Investments, Debt and Equity Securities [Abstract] | |
June 30, 2022 | $ 188 |
Year End Adjustments: | |
Impairment | 0 |
Upward changes for observable prices | 1 |
Downward changes for observable prices | (6) |
Cumulative Adjustments | |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount | (1) |
Upward changes for observable prices | 68 |
Downward changes for observable prices | $ (10) |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 375 | $ 375 |
Amortization expense | $ 12 |
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Other intangible assets: | ||
Estimated Fair Value | $ 192 | $ 192 |
Accumulated Amortization | 44 | 32 |
Net Carrying Amount | 148 | 160 |
Customer relationships | ||
Other intangible assets: | ||
Estimated Fair Value | 135 | 135 |
Accumulated Amortization | 23 | 16 |
Net Carrying Amount | 112 | 119 |
Other | ||
Other intangible assets: | ||
Estimated Fair Value | 57 | 57 |
Accumulated Amortization | 21 | 16 |
Net Carrying Amount | $ 36 | $ 41 |
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (excluding the six months ended June 30, 2022) | $ 12 | |
2023 | 22 | |
2024 | 20 | |
2025 | 17 | |
2026 | 30 | |
2027 and thereafter | 47 | |
Net Carrying Amount | $ 148 | $ 160 |
Derivative Financial Instruments - Fair Value Hedges (Details) - Interest rate swaps - Other assets - Derivatives designated as hedging instruments $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Derivative [Line Items] | |
Amortized Cost Basis of the Hedged Assets | $ 9,321 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | (308) |
Amortized cost of hedged items where the hedged item is the last layer expected to be remaining at the end of the hedging relationship | 9,300 |
Amount of hedged items where the hedged item is the last layer expected to be remaining at the end of the hedging relationship | 5,900 |
Cumulative adjustments of hedged items where the hedged item is the last layer expected to be remaining at the end of the hedging relationship | 313 |
Hedging adjustments on discontinued heading relationships | $ 5 |
Derivative Financial Instruments - Cash Flow Hedges (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2020 |
|
Derivative [Line Items] | ||
Unrealized gain on terminated cash flow hedge remaining in AOCI, before tax | $ 87 | |
Unrealized gain on terminated cash flow hedge remaining in AOCI, net of tax | $ 62 | |
Term unrealized gains reclassified into earnings | 3 years | |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 5,000 | |
Derivatives net asset fair value | $ 228 |
Noninterest Income - Summary of Noninterest Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other Income and Expenses [Abstract] | ||||
Gains/(loss) on investment securities, net | $ (157) | $ 305 | $ (72) | $ 472 |
Gains on equity warrant assets, net | 17 | 122 | 80 | 344 |
Client investment fees | 83 | 15 | 118 | 35 |
Wealth management and trust fees | 22 | 0 | 44 | 0 |
Foreign exchange fees | 69 | 67 | 142 | 124 |
Credit card fees | 40 | 31 | 77 | 59 |
Deposit service charges | 32 | 28 | 62 | 53 |
Lending related fees | 26 | 18 | 45 | 34 |
Letters of credit and standby letters of credit fees | 14 | 13 | 28 | 26 |
Investment banking revenue | 125 | 103 | 218 | 245 |
Commissions | 24 | 17 | 49 | 41 |
Other | 67 | 42 | 88 | 72 |
Total noninterest income | $ 362 | $ 761 | $ 879 | $ 1,505 |
Noninterest Income - Gains and Losses on Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other Income and Expenses [Abstract] | ||||
Total net gains on non-marketable and other equity securities | $ (156) | $ 305 | $ (120) | $ 472 |
(Losses) gains on sales of AFS securities, net | (1) | 0 | 48 | 0 |
Gains on investment securities, net | $ (157) | $ 305 | $ (72) | $ 472 |
Noninterest Income - Gains and Losses on Derivatives (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other Income and Expenses [Abstract] | ||||
Gains on exercises, net | $ 9 | $ 78 | $ 28 | $ 251 |
Terminations | (1) | (1) | (2) | (1) |
Changes in fair value, net | 9 | 45 | 54 | 94 |
Gains on equity warrant assets, net | $ 17 | $ 122 | $ 80 | $ 344 |
Noninterest Income - Client Investment Fees (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 368 | $ 306 | $ 720 | $ 633 |
Sweep money market fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 56 | 7 | 80 | 18 |
Asset management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 15 | 8 | 25 | 16 |
Repurchase agreement fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 12 | 0 | 13 | 1 |
Client investment fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 83 | $ 15 | $ 118 | $ 35 |
Noninterest Income - Wealth Management and Trust Fees (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other Income and Expenses [Abstract] | ||||
Wealth management fees | $ 20 | $ 0 | $ 40 | $ 0 |
Trust fees | 2 | 0 | 4 | 0 |
Wealth management and trust fees | $ 22 | $ 0 | $ 44 | $ 0 |
Noninterest Income - Foreign Exchange Fees (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 368 | $ 306 | $ 720 | $ 633 |
Revenue not from contract with customer | (6) | 455 | 159 | 872 |
Foreign exchange fees | 69 | 67 | 142 | 124 |
Spot contract commissions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 69 | 66 | 141 | 123 |
Option premium fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contract with customer | $ 0 | $ 1 | $ 1 | $ 1 |
Noninterest Income - Credit Card Fees (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Card interchange fees, net | $ 32 | $ 26 | $ 62 | $ 49 |
Revenue from contracts with customers | 368 | 306 | 720 | 633 |
Revenue not from contract with customer | (6) | 455 | 159 | 872 |
Total credit card fees | 40 | 31 | 77 | 59 |
Merchant service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 6 | 4 | 11 | 8 |
Card service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contract with customer | $ 2 | $ 1 | $ 4 | $ 2 |
Noninterest Income - Lending Related Fees (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Lending related fees | $ 26 | $ 18 | $ 45 | $ 34 |
Unused commitment fees | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Lending related fees | 20 | 15 | 35 | 28 |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Lending related fees | $ 6 | $ 3 | $ 10 | $ 6 |
Noninterest Income - Investment Banking Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Investment banking revenue: | ||||
Underwriting fees | $ 41 | $ 84 | $ 73 | $ 209 |
Advisory fees | 69 | 9 | 123 | 13 |
Private placements and other | 15 | 10 | 22 | 23 |
Total investment banking revenue | $ 125 | $ 103 | $ 218 | $ 245 |
Noninterest Income - Summary of Other Noninterest Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Revenue from contracts with customers | $ 368 | $ 306 | $ 720 | $ 633 |
Net losses on revaluation of foreign currency instruments, net of foreign exchange forward contracts | 1 | 6 | 1 | 5 |
Gains on total return swaps | 35 | 0 | 27 | 0 |
Other service revenue | 17 | 15 | 33 | 31 |
Other | 67 | 42 | 88 | 72 |
Fund management fees | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Revenue from contracts with customers | $ 14 | $ 21 | $ 27 | $ 36 |
Segment Reporting - Narrative (Details) |
3 Months Ended |
---|---|
Jun. 30, 2022
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Reporting - Segment Information (Additional Information) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Segment Reporting Information [Line Items] | |||||
Goodwill | $ 375 | $ 375 | $ 375 | ||
Operating segments | Silicon Valley Bank | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 12 | $ 8 | 21 | $ 14 | |
Operating segments | SVB Securities | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | 174 | $ 138 | 174 | $ 138 | |
Operating segments | Private bank | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | $ 201 | $ 201 |
Off-Balance Sheet Arrangements, Guarantees and Other Commitments - Commitments to Extend Credit (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total unfunded credit commitments | $ 50,577 | $ 44,016 | ||||
Allowance for credit losses: loans | 545 | $ 421 | 422 | $ 396 | $ 392 | $ 448 |
Loan commitments | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total unfunded credit commitments | 46,627 | 40,327 | ||||
Standby letters of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total unfunded credit commitments | 3,845 | 3,612 | ||||
Commercial letters of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total unfunded credit commitments | 105 | 77 | ||||
Unfunded Credit Commitments | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit losses: loans | $ 224 | $ 175 | $ 171 | $ 120 | $ 105 | $ 121 |
Off-Balance Sheet Arrangements, Guarantees and Other Commitments - Standby Letters of Credit (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Guarantor Obligations [Line Items] | ||
Expires in One Year or Less | $ 3,747 | |
Expires After One Year | 98 | |
Total Amount Outstanding | 3,845 | |
Maximum Amount of Future Payments | 3,845 | |
Financial standby letters of credit | ||
Guarantor Obligations [Line Items] | ||
Expires in One Year or Less | 3,671 | |
Expires After One Year | 92 | |
Total Amount Outstanding | 3,763 | |
Maximum Amount of Future Payments | 3,763 | |
Performance standby letters of credit | ||
Guarantor Obligations [Line Items] | ||
Expires in One Year or Less | 76 | |
Expires After One Year | 6 | |
Total Amount Outstanding | 82 | |
Maximum Amount of Future Payments | 82 | |
Standby letters of credit | ||
Guarantor Obligations [Line Items] | ||
Deferred fees | $ 20 | $ 20 |
Income Taxes (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 38 |
Income tax reduction from recognized tax benefit | $ 30 |
Fair Value of Financial Instruments - Additional Information about Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Equity warrant assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 315 | $ 233 | $ 269 | $ 192 |
Total Net Gains Included in Net Income | 20 | 121 | 85 | 341 |
Sales/Exits | (23) | (104) | (46) | (285) |
Issuances | 6 | 7 | 12 | 13 |
Transfers Into Level 3 | 0 | 0 | (2) | (4) |
Ending Balance | 318 | $ 257 | 318 | $ 257 |
Contingent conversion rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 7 | 0 | ||
Total Net Gains Included in Net Income | (1) | (1) | ||
Sales/Exits | 0 | 0 | ||
Issuances | 0 | 7 | ||
Transfers Into Level 3 | 0 | 0 | ||
Ending Balance | $ 6 | $ 6 |
Fair Value of Financial Instruments - Unrealized Gains Included in Earnings Attributable to Level 3 Assets Held (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Unrealized Gains (Losses) [Line Items] | ||||
Unrealized gains included in earnings attributable to Level 3 assets still held | $ 3 | $ 31 | $ 57 | $ 92 |
Equity warrant assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Unrealized Gains (Losses) [Line Items] | ||||
Unrealized gains included in earnings attributable to Level 3 assets still held | 4 | 31 | 58 | 92 |
Contingent conversion rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Unrealized Gains (Losses) [Line Items] | ||||
Unrealized gains included in earnings attributable to Level 3 assets still held | $ (1) | $ 0 | $ (1) | $ 0 |
Subsequent Events (Details) - Subsequent Event $ in Millions |
1 Months Ended |
---|---|
Jul. 31, 2022
USD ($)
| |
Subsequent Event [Line Items] | |
Gain on terminated AFS fair value hedge | $ 313 |
Amortization period of gain on terminated fair value hedge | 7 years |
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