Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2022

Our reportable segment information for the three and six months ended June 30, 2022 and 2021 is as follows:


(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	$	979	$	102	$	—	$	—	$	86	$	1,167
(Provision for) reduction of credit losses	(136)		(10)		—		—		(50)		(196)
Noninterest income	261		24		(89)		131		35		362
Noninterest expense (3)	(370)		(87)		(17)		(141)		(233)		(848)
Income (loss) before income tax expense (4)	$	734	$	29	$	(106)	$	(10)	$	(162)	$	485
Total average loans, amortized cost	$	54,121	$	14,644	$	—	$	—	$	498	$	69,263
Total average assets (5) (6)	181,087		16,335		941		846		18,789		217,998
Total average deposits	178,293		13,151		—		—		623		192,067
Three months ended June 30, 2021
Net interest income (7)	$	707	$	37	$	—	$	—	$	(16)	$	728
Provision for credit losses	(11)		(5)		—		—		(19)		(35)
Noninterest income	173		2		175		149		262		761
Noninterest expense (3) (7)	(304)		(18)		(18)		(98)		(215)		(653)
Income before income tax expense (4) (7)	$	565	$	16	$	157	$	51	$	12	$	801
Total average loans, amortized cost (7)	$	41,689	$	6,192	$	—	$	—	$	1,931	$	49,812
Total average assets (5) (6) (7)	130,844		6,240		613		729		12,291		150,717
Total average deposits (7)	128,652		4,243		—		—		865		133,760
Six months ended June 30, 2022
Net interest income	$	1,886	$	184	$	—	$	—	$	179	$	2,249
Provision for credit losses	(142)		(12)		—		—		(53)		(207)
Noninterest income (losses)	473		49		(24)		252		129		879
Noninterest expense (3)	(767)		(181)		(36)		(275)		(462)		(1,721)
Income before income tax expense (4)	$	1,450	$	40	$	(60)	$	(23)	$	(207)	$	1,200
Total average loans, amortized cost	$	53,183	$	14,472	$	—	$	—	$	517	$	68,172
Total average assets (5) (6)	179,524		16,163		917		919		19,515		217,038
Total average deposits	176,866		13,780		—		—		750		191,396
Six months ended June 30, 2021
Net interest income (7)	$	1,318	$	72	$	—	$	—	$	(2)	$	1,388
(Provision for) reduction of credit losses	(56)		4		—		—		(2)		(54)
Noninterest income	332		3		244		319		607		1,505
Noninterest expense (3) (7)	(580)		(33)		(34)		(235)		(407)		(1,289)
Income before income tax expense (4) (7)	$	1,014	$	46	$	210	$	84	$	196	1,550
Total average loans, amortized cost (7)	$	39,964	$	6,118	$	—	$	—	$	1,974	$	48,056
Total average assets (5) (6) (7)	119,415		6,169		595		748		10,910		137,837
Total average deposits (7)	117,396		3,895		—		—		957		122,248

(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.