Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2022

Our reportable segment information for the three and nine months ended September 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 September 30, 2022
Net interest income	$	1,107	$	111	$	—	$	1	$	(21)	$	1,198
(Provision for) reduction of credit losses	(32)		3		—		—		(43)		(72)
Noninterest income (loss)	308		22		(54)		100		(17)		359
Noninterest expense (3)	(381)		(85)		(17)		(131)		(278)		(892)
Income (loss) before income tax expense (4)	$	1,002	$	51	$	(71)	$	(30)	$	(359)	$	593
Total average loans, amortized cost	$	55,177	$	15,181	$	—	$	—	$	740	$	71,098
Total average assets (5) (6)	175,620		17,032		883		898		21,307		215,740
Total average deposits	172,427		12,436		—		—		693		185,556
Three months ended September 30, 2021
Net interest income (7)	$	766	$	74	$	—	$	—	$	12	$	852
Provision for credit losses	29		(20)		—		—		(30)		(21)
Noninterest income	182		25		145		131		189		672
Noninterest expense (3) (7)	(336)		(93)		(15)		(142)		(293)		(879)
Income before income tax expense (4) (7)	$	641	$	(14)	$	130	$	(11)	$	(122)	$	624
Total average loans, amortized cost (7)	$	44,789	$	13,515	$	—	$	—	$	987	$	59,291
Total average assets (5) (6) (7)	151,352		15,930		730		837		13,841		182,690
Total average deposits (7)	148,879		13,431		—		—		1,082		163,392
Nine months ended September 30, 2022
Net interest income	$	2,993	$	296	$	—	$	1	$	157	$	3,447
Provision for credit losses	(174)		(9)		—		—		(96)		(279)
Noninterest income (loss)	781		72		(78)		352		111		1,238
Noninterest expense (3)	(1,148)		(267)		(53)		(406)		(739)		(2,613)
Income before income tax expense (4)	$	2,452	$	92	$	(131)	$	(53)	$	(567)	$	1,793
Total average loans, amortized cost	$	53,855	$	14,711	$	—	$	—	$	592	$	69,158
Total average assets (5) (6)	178,209		16,456		956		912		20,119		216,652
Total average deposits	175,370		13,327		—		—		731		189,428
Nine months ended September 30, 2021
Net interest income (7)	$	2,084	$	146	$	—	$	—	$	10	$	2,240
(Provision for) reduction of credit losses	(27)		(16)		—		—		(32)		(75)
Noninterest income	514		28		389		450		796		2,177
Noninterest expense (3) (7)	(911)		(126)		(48)		(376)		(707)		(2,168)
Income before income tax expense (4) (7)	$	1,660	$	32	$	341	$	74	$	67	2,174
Total average loans, amortized cost (7)	$	41,591	$	8,610	$	—	$	—	$	1,642	$	51,843
Total average assets (5) (6) (7)	130,177		9,459		641		778		11,897		152,952
Total average deposits (7)	128,006		7,108		—		—		999		136,113

(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 $13 million and $10 million for the three months ended September 30, 2022 and 2021, respectively and $34 million and $25 million for the nine months ended September 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 and SVB Private is goodwill of $174 million and $201 million, respectively, for the three and nine months ended September 30, 2022, and included in the total average assets for SVB Securities and SVB Private is goodwill of $138 million and $201 million for the three and nine months ended September 30, 2021, respectively.

(7)For the three and nine months ended September 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.