Delaware | 91-1962278 | |||||||
(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 | ||||||||||||
Common Stock, par value $0.001 per share | SIVB | The Nasdaq Stock Market LLC | ||||||||||||
Depositary shares, each representing a 1/40th ownership interest in a share of 5.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A | SIVBP | The Nasdaq Stock Market LLC |
Page | ||||||||
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Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
(Dollars in thousands, except par value and share data) | June 30, 2020 | December 31, 2019 | ||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 14,202,106 | $ | 6,781,783 | ||||
Available-for-sale securities, at fair value (cost of $17,800,589 and $13,894,348, respectively) | 18,451,913 | 14,014,919 | ||||||
Held-to-maturity securities, at amortized cost and net of allowance for credit losses of $222 and $0 (fair value of $13,541,461 and $14,115,272, respectively) (1) | 12,858,823 | 13,842,946 | ||||||
Non-marketable and other equity securities | 1,270,578 | 1,213,829 | ||||||
Total investment securities | 32,581,314 | 29,071,694 | ||||||
Loans, amortized cost | 36,727,222 | 33,164,636 | ||||||
Allowance for credit losses: loans | (589,828 | ) | (304,924 | ) | ||||
Net loans | 36,137,394 | 32,859,712 | ||||||
Premises and equipment, net of accumulated depreciation and amortization | 169,313 | 161,876 | ||||||
Goodwill | 137,823 | 137,823 | ||||||
Other intangible assets, net | 46,726 | 49,417 | ||||||
Lease right-of-use assets | 215,319 | 197,365 | ||||||
Accrued interest receivable and other assets | 2,240,990 | 1,745,233 | ||||||
Total assets | $ | 85,730,985 | $ | 71,004,903 | ||||
Liabilities and total equity: | ||||||||
Liabilities: | ||||||||
Noninterest-bearing demand deposits | $ | 49,160,880 | $ | 40,841,570 | ||||
Interest-bearing deposits | 25,344,884 | 20,916,237 | ||||||
Total deposits | 74,505,764 | 61,757,807 | ||||||
Short-term borrowings | 50,924 | 17,430 | ||||||
Lease liabilities | 239,357 | 218,847 | ||||||
Other liabilities | 2,623,407 | 2,041,752 | ||||||
Long-term debt | 843,220 | 347,987 | ||||||
Total liabilities | 78,262,672 | 64,383,823 | ||||||
Commitments and contingencies (Note 15 and Note 18) | ||||||||
SVBFG stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; 350,000 shares issued and outstanding | 340,138 | 340,138 | ||||||
Common stock, $0.001 par value, 150,000,000 shares authorized; 51,740,714 shares and 51,655,607 shares issued and outstanding, respectively | 52 | 52 | ||||||
Additional paid-in capital | 1,522,728 | 1,470,071 | ||||||
Retained earnings | 4,841,720 | 4,575,601 | ||||||
Accumulated other comprehensive income | 614,735 | 84,445 | ||||||
Total SVBFG stockholders’ equity | 7,319,373 | 6,470,307 | ||||||
Noncontrolling interests | 148,940 | 150,773 | ||||||
Total equity | 7,468,313 | 6,621,080 | ||||||
Total liabilities and total equity | $ | 85,730,985 | $ | 71,004,903 |
(Dollars in thousands, except par value and share data) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 15,687,776 | $ | 6,781,783 | ||||||||||
Available-for-sale securities, at fair value (cost of $25,237,540 and $13,894,348, respectively) | 25,904,324 | 14,014,919 | ||||||||||||
Held-to-maturity securities, at amortized cost and net of allowance for credit losses of $291 and $0 (fair value of $13,612,463 and $14,115,272, respectively) (1) | 12,982,223 | 13,842,946 | ||||||||||||
Non-marketable and other equity securities | 1,547,363 | 1,213,829 | ||||||||||||
Total investment securities | 40,433,910 | 29,071,694 | ||||||||||||
Loans, amortized cost | 38,413,891 | 33,164,636 | ||||||||||||
Allowance for credit losses: loans | (512,958) | (304,924) | ||||||||||||
Net loans | 37,900,933 | 32,859,712 | ||||||||||||
Premises and equipment, net of accumulated depreciation and amortization | 173,477 | 161,876 | ||||||||||||
Goodwill | 137,823 | 137,823 | ||||||||||||
Other intangible assets, net | 45,380 | 49,417 | ||||||||||||
Lease right-of-use assets | 220,493 | 197,365 | ||||||||||||
Accrued interest receivable and other assets | 2,316,979 | 1,745,233 | ||||||||||||
Total assets | $ | 96,916,771 | $ | 71,004,903 | ||||||||||
Liabilities and total equity: | ||||||||||||||
Liabilities: | ||||||||||||||
Noninterest-bearing demand deposits | $ | 57,508,229 | $ | 40,841,570 | ||||||||||
Interest-bearing deposits | 27,264,791 | 20,916,237 | ||||||||||||
Total deposits | 84,773,020 | 61,757,807 | ||||||||||||
Short-term borrowings | 19,068 | 17,430 | ||||||||||||
Lease liabilities | 246,652 | 218,847 | ||||||||||||
Other liabilities | 3,067,221 | 2,041,752 | ||||||||||||
Long-term debt | 843,430 | 347,987 | ||||||||||||
Total liabilities | 88,949,391 | 64,383,823 | ||||||||||||
Commitments and contingencies (Note 15 and Note 18) | ||||||||||||||
SVBFG stockholders’ equity: | ||||||||||||||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; 350,000 shares issued and outstanding | 340,138 | 340,138 | ||||||||||||
Common stock, $0.001 par value, 150,000,000 shares authorized; 51,787,972 shares and 51,655,607 shares issued and outstanding, respectively | 52 | 52 | ||||||||||||
Additional paid-in capital | 1,548,918 | 1,470,071 | ||||||||||||
Retained earnings | 5,283,433 | 4,575,601 | ||||||||||||
Accumulated other comprehensive income | 620,394 | 84,445 | ||||||||||||
Total SVBFG stockholders’ equity | 7,792,935 | 6,470,307 | ||||||||||||
Noncontrolling interests | 174,445 | 150,773 | ||||||||||||
Total equity | 7,967,380 | 6,621,080 | ||||||||||||
Total liabilities and total equity | $ | 96,916,771 | $ | 71,004,903 |
(1)Prior to our adoption of Accounting Standard Update (ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) on January 1, 2020, the allowance for credit losses (ACL) related to held-to-maturity (HTM) securities was not applicable and is therefore presented as $0 at December 31, 2019. See "Adoption of New Accounting Standards" in Note 1 — “Basis of Presentation” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional details. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | (Dollars in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Interest income: | Interest income: | |||||||||||||||||||||||||||||||||||||||||
Loans | $ | 365,110 | $ | 414,077 | $ | 747,679 | $ | 808,221 | Loans | $ | 368,981 | $ | 394,246 | $ | 1,116,660 | $ | 1,202,467 | |||||||||||||||||||||||||
Investment securities: | Investment securities: | |||||||||||||||||||||||||||||||||||||||||
Taxable | 141,547 | 134,395 | 295,932 | 261,112 | Taxable | 156,517 | 149,656 | 452,449 | 410,768 | |||||||||||||||||||||||||||||||||
Non-taxable | 14,464 | 10,931 | 27,288 | 21,868 | Non-taxable | 14,912 | 11,123 | 42,200 | 32,991 | |||||||||||||||||||||||||||||||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | 2,402 | 26,364 | 20,026 | 45,580 | Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | 2,717 | 28,867 | 22,743 | 74,447 | |||||||||||||||||||||||||||||||||
Total interest income | 523,523 | 585,767 | 1,090,925 | 1,136,781 | Total interest income | 543,127 | 583,892 | 1,634,052 | 1,720,673 | |||||||||||||||||||||||||||||||||
Interest expense: | Interest expense: | |||||||||||||||||||||||||||||||||||||||||
Deposits | 5,694 | 47,150 | 43,092 | 75,057 | Deposits | 8,218 | 55,106 | 51,310 | 130,163 | |||||||||||||||||||||||||||||||||
Borrowings | 4,902 | 9,214 | 10,769 | 19,435 | Borrowings | 7,169 | 8,142 | 17,938 | 27,577 | |||||||||||||||||||||||||||||||||
Total interest expense | 10,596 | 56,364 | 53,861 | 94,492 | Total interest expense | 15,387 | 63,248 | 69,248 | 157,740 | |||||||||||||||||||||||||||||||||
Net interest income | 512,927 | 529,403 | 1,037,064 | 1,042,289 | Net interest income | 527,740 | 520,644 | 1,564,804 | 1,562,933 | |||||||||||||||||||||||||||||||||
Provision for credit losses | 66,481 | 23,946 | 309,961 | 52,497 | ||||||||||||||||||||||||||||||||||||||
(Reduction) provision for credit losses | (Reduction) provision for credit losses | (52,018) | 36,536 | 257,943 | 89,033 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 446,446 | 505,457 | 727,103 | 989,792 | Net interest income after provision for credit losses | 579,758 | 484,108 | 1,306,861 | 1,473,900 | |||||||||||||||||||||||||||||||||
Noninterest income: | Noninterest income: | |||||||||||||||||||||||||||||||||||||||||
Gains on investment securities, net | 34,868 | 47,698 | 80,923 | 76,726 | Gains on investment securities, net | 189,837 | 29,849 | 270,760 | 106,575 | |||||||||||||||||||||||||||||||||
Gains on equity warrant assets, net | 26,506 | 48,347 | 39,901 | 69,652 | Gains on equity warrant assets, net | 53,766 | 37,561 | 93,667 | 107,213 | |||||||||||||||||||||||||||||||||
Client investment fees | 31,885 | 45,744 | 75,278 | 90,226 | Client investment fees | 31,914 | 46,679 | 107,192 | 136,905 | |||||||||||||||||||||||||||||||||
Foreign exchange fees | 36,256 | 38,506 | 83,761 | 76,554 | Foreign exchange fees | 43,881 | 40,309 | 127,642 | 116,863 | |||||||||||||||||||||||||||||||||
Credit card fees | 21,288 | 28,790 | 49,592 | 56,273 | Credit card fees | 22,756 | 30,158 | 72,348 | 86,431 | |||||||||||||||||||||||||||||||||
Deposit service charges | 20,511 | 22,075 | 45,100 | 43,014 | Deposit service charges | 22,015 | 22,482 | 67,115 | 65,496 | |||||||||||||||||||||||||||||||||
Lending related fees | 11,164 | 11,213 | 24,289 | 25,150 | Lending related fees | 13,562 | 11,707 | 37,851 | 36,857 | |||||||||||||||||||||||||||||||||
Letters of credit and standby letters of credit fees | 11,421 | 11,009 | 22,963 | 20,363 | Letters of credit and standby letters of credit fees | 12,192 | 10,842 | 35,155 | 31,205 | |||||||||||||||||||||||||||||||||
Investment banking revenue | 141,503 | 48,694 | 188,370 | 98,489 | Investment banking revenue | 92,181 | 38,516 | 280,551 | 137,005 | |||||||||||||||||||||||||||||||||
Commissions | 16,918 | 14,429 | 32,940 | 28,537 | Commissions | 16,257 | 12,275 | 49,197 | 40,812 | |||||||||||||||||||||||||||||||||
Other | 16,528 | 17,245 | 27,665 | 29,142 | Other | 49,222 | 13,631 | 76,887 | 42,773 | |||||||||||||||||||||||||||||||||
Total noninterest income | 368,848 | 333,750 | 670,782 | 614,126 | Total noninterest income | 547,583 | 294,009 | 1,218,365 | 908,135 | |||||||||||||||||||||||||||||||||
Noninterest expense: | Noninterest expense: | |||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 319,797 | 243,172 | 575,383 | 481,233 | Compensation and benefits | 327,369 | 233,840 | 902,752 | 715,073 | |||||||||||||||||||||||||||||||||
Professional services | 63,828 | 40,830 | 102,533 | 77,816 | Professional services | 67,215 | 55,202 | 169,748 | 133,018 | |||||||||||||||||||||||||||||||||
Premises and equipment | 27,708 | 23,911 | 54,648 | 45,611 | Premises and equipment | 30,772 | 26,775 | 85,420 | 72,386 | |||||||||||||||||||||||||||||||||
Net occupancy | 18,845 | 16,687 | 37,191 | 32,735 | Net occupancy | 18,965 | 16,981 | 56,156 | 49,716 | |||||||||||||||||||||||||||||||||
Business development and travel | 2,992 | 17,022 | 17,063 | 32,376 | Business development and travel | 2,214 | 19,539 | 19,277 | 51,915 | |||||||||||||||||||||||||||||||||
FDIC and state assessments | 6,819 | 4,483 | 12,053 | 8,462 | FDIC and state assessments | 6,933 | 4,881 | 18,986 | 13,343 | |||||||||||||||||||||||||||||||||
Other | 39,647 | 37,417 | 80,350 | 70,953 | Other | 37,553 | 34,106 | 117,903 | 105,059 | |||||||||||||||||||||||||||||||||
Total noninterest expense | 479,636 | 383,522 | 879,221 | 749,186 | Total noninterest expense | 491,021 | 391,324 | 1,370,242 | 1,140,510 | |||||||||||||||||||||||||||||||||
Income before income tax expense | 335,658 | 455,685 | 518,664 | 854,732 | Income before income tax expense | 636,320 | 386,793 | 1,154,984 | 1,241,525 | |||||||||||||||||||||||||||||||||
Income tax expense | 87,869 | 119,114 | 137,226 | 226,549 | Income tax expense | 162,265 | 105,075 | 299,491 | 331,624 | |||||||||||||||||||||||||||||||||
Net income before noncontrolling interests | 247,789 | 336,571 | 381,438 | 628,183 | Net income before noncontrolling interests | 474,055 | 281,718 | 855,493 | 909,901 | |||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (14,260 | ) | (18,584 | ) | (12,287 | ) | (21,464 | ) | Net income attributable to noncontrolling interests | (27,748) | (14,437) | (40,035) | (35,901) | |||||||||||||||||||||||||||||
Preferred stock dividends | (4,594 | ) | — | (7,963 | ) | — | Preferred stock dividends | (4,594) | 0 | (12,557) | 0 | |||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 228,935 | $ | 317,987 | $ | 361,188 | $ | 606,719 | Net income available to common stockholders | $ | 441,713 | $ | 267,281 | $ | 802,901 | $ | 874,000 | |||||||||||||||||||||||||
Earnings per common share—basic | $ | 4.44 | $ | 6.12 | $ | 7.00 | $ | 11.61 | Earnings per common share—basic | $ | 8.53 | $ | 5.19 | $ | 15.55 | $ | 16.80 | |||||||||||||||||||||||||
Earnings per common share—diluted | 4.42 | 6.08 | 6.97 | 11.51 | Earnings per common share—diluted | 8.47 | 5.15 | 15.46 | 16.67 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income before noncontrolling interests | $ | 247,789 | $ | 336,571 | $ | 381,438 | $ | 628,183 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Change in foreign currency cumulative translation gains and losses: | ||||||||||||||||
Foreign currency translation gains (losses) | 164 | (2,900 | ) | (8,956 | ) | (94 | ) | |||||||||
Related tax (expense) benefit | (204 | ) | 808 | 2,352 | 26 | |||||||||||
Change in unrealized gains and losses on available-for-sale securities: | ||||||||||||||||
Unrealized holding gains | 46,738 | 119,182 | 590,619 | 166,018 | ||||||||||||
Related tax expense | (12,954 | ) | (33,194 | ) | (163,700 | ) | (46,239 | ) | ||||||||
Reclassification adjustment for losses (gains) included in net income | — | 275 | (61,165 | ) | 3,905 | |||||||||||
Related tax (benefit) expense | — | (77 | ) | 16,953 | (1,087 | ) | ||||||||||
Amortization of unrealized holding gains on securities transferred from available-for-sale to held-to-maturity | (138 | ) | (719 | ) | (690 | ) | (1,393 | ) | ||||||||
Related tax benefit | 38 | 200 | 191 | 388 | ||||||||||||
Change in unrealized gains and losses on cash flow hedges: | ||||||||||||||||
Unrealized gains | — | 17,554 | 231,920 | 18,656 | ||||||||||||
Related tax expense | — | (4,890 | ) | (64,281 | ) | (5,197 | ) | |||||||||
Reclassification adjustment for (gains) losses included in net income | (15,831 | ) | 508 | (17,920 | ) | 511 | ||||||||||
Related tax expense (benefit) | 4,388 | (141 | ) | 4,967 | (142 | ) | ||||||||||
Other comprehensive income, net of tax | 22,201 | 96,606 | 530,290 | 135,352 | ||||||||||||
Comprehensive income | 269,990 | 433,177 | 911,728 | 763,535 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | (14,260 | ) | (18,584 | ) | (12,287 | ) | (21,464 | ) | ||||||||
Comprehensive income attributable to SVBFG | $ | 255,730 | $ | 414,593 | $ | 899,441 | $ | 742,071 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Net income before noncontrolling interests | $ | 474,055 | $ | 281,718 | $ | 855,493 | $ | 909,901 | ||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||
Change in foreign currency cumulative translation gains and losses: | ||||||||||||||||||||||||||
Foreign currency translation gains (losses) | 10,279 | (6,213) | 1,323 | (6,307) | ||||||||||||||||||||||
Related tax (expense) benefit | (2,804) | 1,731 | (452) | 1,757 | ||||||||||||||||||||||
Change in unrealized gains and losses on available-for-sale securities: | ||||||||||||||||||||||||||
Unrealized holding gains | 13,860 | 70,185 | 604,479 | 236,203 | ||||||||||||||||||||||
Related tax expense | (3,842) | (19,547) | (167,542) | (65,786) | ||||||||||||||||||||||
Reclassification adjustment for losses (gains) included in net income | 0 | 0 | (61,165) | 3,905 | ||||||||||||||||||||||
Related tax (benefit) expense | 0 | 0 | 16,953 | (1,087) | ||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from available-for-sale to held-to-maturity | (368) | (374) | (1,058) | (1,767) | ||||||||||||||||||||||
Related tax benefit | 102 | 104 | 293 | 492 | ||||||||||||||||||||||
Change in unrealized gains and losses on cash flow hedges: | ||||||||||||||||||||||||||
Unrealized gains | 0 | 9,810 | 231,920 | 28,466 | ||||||||||||||||||||||
Related tax expense | 0 | (2,733) | (64,281) | (7,930) | ||||||||||||||||||||||
Reclassification adjustment for (gains) losses included in net income | (16,004) | 2,713 | (33,924) | 3,224 | ||||||||||||||||||||||
Related tax expense (benefit) | 4,436 | (755) | 9,403 | (897) | ||||||||||||||||||||||
Other comprehensive income, net of tax | 5,659 | 54,921 | 535,949 | 190,273 | ||||||||||||||||||||||
Comprehensive income | 479,714 | 336,639 | 1,391,442 | 1,100,174 | ||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | (27,748) | (14,437) | (40,035) | (35,901) | ||||||||||||||||||||||
Comprehensive income attributable to SVBFG | $ | 451,966 | $ | 322,202 | $ | 1,351,407 | $ | 1,064,273 |
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 thousands) | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | — | 52,586,498 | $ | 53 | $ | 1,378,438 | $ | 3,791,838 | $ | (54,120 | ) | $ | 5,116,209 | $ | 148,634 | $ | 5,264,843 | |||||||||||||||||
Cumulative adjustment for the adoption of premium amortization on purchased callable debt securities, net of tax (ASU 2017-08) (1) | — | — | — | — | (583 | ) | — | (583 | ) | — | (583 | ) | |||||||||||||||||||||||
Acquisition of SVB Leerink | — | — | — | — | — | — | — | 5,256 | 5,256 | ||||||||||||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | — | 467,427 | — | 7,853 | — | — | 7,853 | — | 7,853 | ||||||||||||||||||||||||||
Common stock issued under ESOP | — | 14,442 | — | 3,506 | — | — | 3,506 | — | 3,506 | ||||||||||||||||||||||||||
Net income | — | — | — | — | 606,719 | — | 606,719 | 21,464 | 628,183 | ||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | (23,222 | ) | (23,222 | ) | ||||||||||||||||||||||||
Net change in unrealized gains and losses on AFS securities, net of tax | — | — | — | — | — | 122,597 | 122,597 | — | 122,597 | ||||||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax | — | — | — | — | — | (1,005 | ) | (1,005 | ) | — | (1,005 | ) | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | — | (68 | ) | (68 | ) | — | (68 | ) | |||||||||||||||||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax | — | — | — | — | — | 13,828 | 13,828 | — | 13,828 | ||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | 31,768 | — | — | 31,768 | — | 31,768 | ||||||||||||||||||||||||||
Common stock repurchases | — | (1,506,648 | ) | (1 | ) | — | (346,780 | ) | — | (346,781 | ) | — | (346,781 | ) | |||||||||||||||||||||
Balance at June 30, 2019 | $ | — | 51,561,719 | $ | 52 | $ | 1,421,565 | $ | 4,051,194 | $ | 81,232 | $ | 5,554,043 | $ | 152,132 | $ | 5,706,175 | ||||||||||||||||||
Balance at December 31, 2019 | $ | 340,138 | 51,655,607 | $ | 52 | $ | 1,470,071 | $ | 4,575,601 | $ | 84,445 | $ | 6,470,307 | $ | 150,773 | $ | 6,621,080 | ||||||||||||||||||
Cumulative adjustment for the day one adoption of ASC 326, net of tax (1) | — | — | — | — | (35,049 | ) | — | (35,049 | ) | — | (35,049 | ) | |||||||||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | — | 317,236 | — | 10,894 | — | — | 10,894 | — | 10,894 | ||||||||||||||||||||||||||
Common stock issued under ESOP | — | 12,094 | — | 2,447 | — | — | 2,447 | — | 2,447 | ||||||||||||||||||||||||||
Net income | — | — | — | — | 369,151 | — | 369,151 | 12,287 | 381,438 | ||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | (14,120 | ) | (14,120 | ) | ||||||||||||||||||||||||
Net change in unrealized gains and losses on AFS securities, net of tax | — | — | — | — | — | 382,707 | 382,707 | — | 382,707 | ||||||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax | — | — | — | — | — | (499 | ) | (499 | ) | — | (499 | ) | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | — | (6,604 | ) | (6,604 | ) | — | (6,604 | ) | |||||||||||||||||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax | — | — | — | — | — | 154,686 | 154,686 | — | 154,686 | ||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | 39,325 | — | — | 39,325 | — | 39,325 | ||||||||||||||||||||||||||
Common stock repurchases | — | (244,223 | ) | — | — | (60,020 | ) | — | (60,020 | ) | — | (60,020 | ) | ||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (7,963 | ) | — | (7,963 | ) | — | (7,963 | ) | |||||||||||||||||||||||
Other, net | — | — | — | (9 | ) | — | — | (9 | ) | — | (9 | ) | |||||||||||||||||||||||
Balance at June 30, 2020 | $ | 340,138 | 51,740,714 | $ | 52 | $ | 1,522,728 | $ | 4,841,720 | $ | 614,735 | $ | 7,319,373 | $ | 148,940 | $ | 7,468,313 |
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 thousands) | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 0 | 52,586,498 | $ | 53 | $ | 1,378,438 | $ | 3,791,838 | $ | (54,120) | $ | 5,116,209 | $ | 148,634 | $ | 5,264,843 | |||||||||||||||||||||||||||||||||||||||
Cumulative adjustment for the adoption of premium amortization on purchased callable debt securities, net of tax (ASU 2017-08) | — | — | — | — | (583) | — | (583) | — | (583) | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of SVB Leerink | — | — | — | — | — | — | — | 5,256 | 5,256 | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | — | 487,101 | 0 | 9,236 | — | — | 9,236 | — | 9,236 | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under ESOP | — | 14,442 | — | 3,506 | — | — | 3,506 | — | 3,506 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 874,000 | — | 874,000 | 35,901 | 909,901 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | (32,002) | (32,002) | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on AFS securities, net of tax | — | — | — | — | — | 173,235 | 173,235 | — | 173,235 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax | — | — | — | — | — | (1,275) | (1,275) | — | (1,275) | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | — | (4,550) | (4,550) | — | (4,550) | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax | — | — | — | — | — | 22,863 | 22,863 | — | 22,863 | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | 50,550 | — | — | 50,550 | — | 50,550 | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | — | (1,532,210) | (1) | — | (352,510) | — | (352,511) | — | (352,511) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 0 | 51,555,831 | $ | 52 | $ | 1,441,730 | $ | 4,312,745 | $ | 136,153 | $ | 5,890,680 | $ | 157,789 | $ | 6,048,469 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 340,138 | 51,655,607 | $ | 52 | $ | 1,470,071 | $ | 4,575,601 | $ | 84,445 | $ | 6,470,307 | $ | 150,773 | $ | 6,621,080 | |||||||||||||||||||||||||||||||||||||||
Cumulative adjustment for the day one adoption of ASC 326, net of tax (1) | — | — | — | — | (35,049) | — | (35,049) | — | (35,049) | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | — | 364,494 | 0 | 15,691 | — | — | 15,691 | — | 15,691 | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under ESOP | — | 12,094 | — | 2,447 | — | — | 2,447 | — | 2,447 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 815,458 | — | 815,458 | 40,035 | 855,493 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | (16,363) | (16,363) | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on AFS securities, net of tax | — | — | — | — | — | 392,725 | 392,725 | — | 392,725 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax | — | — | — | — | — | (765) | (765) | — | (765) | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | — | 871 | 871 | — | 871 | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax | — | — | — | — | — | 143,118 | 143,118 | — | 143,118 | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | 60,733 | — | — | 60,733 | — | 60,733 | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | — | (244,223) | 0 | — | (60,020) | — | (60,020) | — | (60,020) | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (12,557) | — | (12,557) | — | (12,557) | |||||||||||||||||||||||||||||||||||||||||||||||
Other, net | — | — | — | (24) | — | — | (24) | — | (24) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 340,138 | 51,787,972 | $ | 52 | $ | 1,548,918 | $ | 5,283,433 | $ | 620,394 | $ | 7,792,935 | $ | 174,445 | $ | 7,967,380 |
(1)See "Adoption of New Accounting Standards" in Note 1 — “Basis of Presentation” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional details. |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | (Dollars in thousands) | 2020 | 2019 | |||||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||||||
Net income before noncontrolling interests | $ | 381,438 | $ | 628,183 | Net income before noncontrolling interests | $ | 855,493 | $ | 909,901 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||
Provision for credit losses | 309,961 | 52,497 | Provision for credit losses | 257,943 | 89,033 | |||||||||||||||||
Changes in fair values of equity warrant assets, net of proceeds from exercises | 20,632 | (825 | ) | Changes in fair values of equity warrant assets, net of proceeds from exercises | (4,270) | 12,801 | ||||||||||||||||
Changes in fair values of derivatives, net | (58,776 | ) | (9,958 | ) | Changes in fair values of derivatives, net | (87,740) | (29,472) | |||||||||||||||
Gains on investment securities, net | (80,923 | ) | (76,726 | ) | Gains on investment securities, net | (270,760) | (106,575) | |||||||||||||||
Distributions of earnings from non-marketable and other equity securities | 49,125 | 40,584 | Distributions of earnings from non-marketable and other equity securities | 64,703 | 77,584 | |||||||||||||||||
Depreciation and amortization | 49,650 | 40,824 | Depreciation and amortization | 73,607 | 60,408 | |||||||||||||||||
Amortization of premiums and discounts on investment securities, net | 29,633 | 4,993 | Amortization of premiums and discounts on investment securities, net | 54,918 | 9,646 | |||||||||||||||||
Amortization of share-based compensation | 39,325 | 31,768 | Amortization of share-based compensation | 60,733 | 50,550 | |||||||||||||||||
Amortization of deferred loan fees | (78,042 | ) | (76,712 | ) | Amortization of deferred loan fees | (123,305) | (112,383) | |||||||||||||||
Deferred income tax benefit | (72,755 | ) | (3,854 | ) | Deferred income tax benefit | (4,124) | (1,720) | |||||||||||||||
Excess tax benefit from exercise of stock options and vesting of restricted shares | (2,181 | ) | (7,369 | ) | Excess tax benefit from exercise of stock options and vesting of restricted shares | (3,449) | (7,931) | |||||||||||||||
Losses from the write-off of premises and equipment | — | 185 | Losses from the write-off of premises and equipment | 0 | 185 | |||||||||||||||||
Changes in other assets and liabilities: | Changes in other assets and liabilities: | |||||||||||||||||||||
Accrued interest receivable and payable, net | 16,606 | (3,850 | ) | Accrued interest receivable and payable, net | 15,565 | (10,429) | ||||||||||||||||
Accounts receivable and payable, net | 2,770 | 22,308 | Accounts receivable and payable, net | 17,534 | (18,278) | |||||||||||||||||
Income tax receivable and payable, net | 131,253 | (87,097 | ) | Income tax receivable and payable, net | (15,267) | (59,527) | ||||||||||||||||
Accrued compensation | (115,203 | ) | (175,469 | ) | Accrued compensation | (634) | (109,837) | |||||||||||||||
Foreign exchange spot contracts, net | (5,900 | ) | 108,307 | Foreign exchange spot contracts, net | 147,021 | 34,304 | ||||||||||||||||
Proceeds from termination of interest rate swaps | 227,500 | — | Proceeds from termination of interest rate swaps | 227,500 | 0 | |||||||||||||||||
Other, net | (98,635 | ) | (37,218 | ) | Other, net | (212,177) | (78,516) | |||||||||||||||
Net cash provided by operating activities | 745,478 | 450,571 | Net cash provided by operating activities | 1,053,291 | 709,744 | |||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||||||
Purchases of available-for-sale securities | (8,071,014 | ) | (2,553,326 | ) | Purchases of available-for-sale securities | (16,614,960) | (7,832,282) | |||||||||||||||
Proceeds from sales of available-for-sale securities | 2,654,212 | 2,189,087 | Proceeds from sales of available-for-sale securities | 2,654,212 | 2,189,087 | |||||||||||||||||
Proceeds from maturities and paydowns of available-for-sale securities | 1,550,220 | 382,054 | Proceeds from maturities and paydowns of available-for-sale securities | 2,634,123 | 801,605 | |||||||||||||||||
Purchases of held-to-maturity securities | (568,002 | ) | (277,889 | ) | Purchases of held-to-maturity securities | (1,756,920) | (408,479) | |||||||||||||||
Proceeds from maturities and paydowns of held-to-maturity securities | 1,543,942 | 888,943 | Proceeds from maturities and paydowns of held-to-maturity securities | 2,833,290 | 1,516,340 | |||||||||||||||||
Purchases of non-marketable and other equity securities | (118,737 | ) | (39,287 | ) | Purchases of non-marketable and other equity securities | (163,817) | (100,068) | |||||||||||||||
Proceeds from sales and distributions of capital of non-marketable and other equity securities | 57,745 | 59,187 | Proceeds from sales and distributions of capital of non-marketable and other equity securities | 84,850 | 90,371 | |||||||||||||||||
Net increase in loans | (3,530,020 | ) | (844,830 | ) | Net increase in loans | (5,193,146) | (2,685,151) | |||||||||||||||
Purchases of premises and equipment | (51,214 | ) | (18,632 | ) | Purchases of premises and equipment | (66,003) | (33,871) | |||||||||||||||
Acquisition of SVB Leerink, net of cash acquired | — | (102,328 | ) | Acquisition of SVB Leerink, net of cash acquired | 0 | (102,328) | ||||||||||||||||
Net cash used for investing activities | (6,532,868 | ) | (317,021 | ) | Net cash used for investing activities | (15,588,371) | (6,564,776) | |||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||
Net increase in deposits | 12,747,957 | 6,281,640 | Net increase in deposits | 23,015,213 | 10,213,974 | |||||||||||||||||
Net increase (decrease) in short-term borrowings | 33,494 | (607,160 | ) | Net increase (decrease) in short-term borrowings | 1,638 | (612,514) | ||||||||||||||||
Proceeds from issuance of 3.125% Senior Notes | 495,024 | — | Proceeds from issuance of 3.125% Senior Notes | 495,024 | 0 | |||||||||||||||||
(Distributions to noncontrolling interests), net of contributions from noncontrolling interests | (14,120 | ) | (23,222 | ) | (Distributions to noncontrolling interests), net of contributions from noncontrolling interests | (16,363) | (32,002) | |||||||||||||||
Payment of preferred stock dividend | (7,963 | ) | — | Payment of preferred stock dividend | (12,557) | 0 | ||||||||||||||||
Common stock repurchases | (60,020 | ) | (346,781 | ) | Common stock repurchases | (60,020) | (352,511) | |||||||||||||||
Proceeds from issuance of common stock, ESPP and ESOP, net of restricted stock awards | 13,341 | 11,359 | Proceeds from issuance of common stock, ESPP and ESOP, net of restricted stock awards | 18,138 | 12,742 | |||||||||||||||||
Net cash provided by financing activities | 13,207,713 | 5,315,836 | Net cash provided by financing activities | 23,441,073 | 9,229,689 | |||||||||||||||||
Net increase in cash and cash equivalents | 7,420,323 | 5,449,386 | Net increase in cash and cash equivalents | 8,905,993 | 3,374,657 | |||||||||||||||||
Cash and cash equivalents at beginning of period | 6,781,783 | 3,571,539 | Cash and cash equivalents at beginning of period | 6,781,783 | 3,571,539 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 14,202,106 | $ | 9,020,925 | Cash and cash equivalents at end of period | $ | 15,687,776 | $ | 6,946,196 | |||||||||||||
Supplemental disclosures: | Supplemental disclosures: | |||||||||||||||||||||
Cash paid during the period for: | Cash paid during the period for: | |||||||||||||||||||||
Interest | $ | 67,493 | $ | 94,851 | Interest | $ | 67,012 | $ | 164,503 | |||||||||||||
Income taxes | 57,539 | 310,604 | Income taxes | 287,098 | 379,579 | |||||||||||||||||
Noncash items during the period: | Noncash items during the period: | |||||||||||||||||||||
Changes in unrealized gains and losses on available-for-sale securities, net of tax | $ | 382,707 | $ | 122,597 | Changes in unrealized gains and losses on available-for-sale securities, net of tax | $ | 392,725 | $ | 173,235 | |||||||||||||
Distributions of stock from investments | 11,093 | 6,747 | Distributions of stock from investments | 11,574 | 7,770 |
(Dollars in thousands) | Balance at December 31, 2019 | Adjustments Due to Adoption of ASC 326 | Balance at January 1, 2020 | |||||||||
Assets: | ||||||||||||
Allowance for credit losses: loans | $ | 304,924 | $ | 25,464 | $ | 330,388 | ||||||
Allowance for credit losses: held-to-maturity securities | — | 174 | 174 | |||||||||
Deferred tax assets | 28,433 | 13,415 | 41,848 | |||||||||
Other liabilities: | ||||||||||||
Allowance for credit losses: unfunded credit commitments | 67,656 | 22,826 | 90,482 | |||||||||
Stockholders' equity: | ||||||||||||
Retained earnings, net of tax | 4,575,601 | (35,049 | ) | 4,540,552 |
(Dollars in thousands) | Balance at December 31, 2019 | Adjustments Due to Adoption of ASC 326 | Balance at January 1, 2020 | |||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: loans | $ | 304,924 | $ | 25,464 | $ | 330,388 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: held-to-maturity securities | 0 | 174 | 174 | |||||||||||||||||||||||||||||||||||
Deferred tax assets | 28,433 | 13,415 | 41,848 | |||||||||||||||||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: unfunded credit commitments | 67,656 | 22,826 | 90,482 | |||||||||||||||||||||||||||||||||||
Stockholders' equity: | ||||||||||||||||||||||||||||||||||||||
Retained earnings, net of tax | 4,575,601 | (35,049) | 4,540,552 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
(Dollars in thousands) | Income Statement Location | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Reclassification adjustment for losses (gains) on available-for-sale securities included in net income | Gains on investment securities, net | $ | — | $ | 275 | $ | (61,165 | ) | $ | 3,905 | ||||||||
Related tax (benefit) expense | Income tax expense | — | (77 | ) | 16,953 | (1,087 | ) | |||||||||||
Reclassification adjustment for (gains) losses on cash flow hedges included in net income | Net interest income | (15,831 | ) | 508 | (17,920 | ) | 511 | |||||||||||
Related tax expense (benefit) | Income tax expense | 4,388 | (141 | ) | 4,967 | (142 | ) | |||||||||||
Total reclassification adjustment for (gains) losses included in net income, net of tax | $ | (11,443 | ) | $ | 565 | $ | (57,165 | ) | $ | 3,187 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Income Statement Location | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income | Gains on investment securities, net | $ | 0 | $ | 0 | $ | (61,165) | $ | 3,905 | |||||||||||||||||||||||
Related tax expense (benefit) | Income tax expense | 0 | 0 | 16,953 | (1,087) | |||||||||||||||||||||||||||
Reclassification adjustment for (gains) losses on cash flow hedges included in net income | Net interest income | (16,004) | 2,713 | (33,924) | 3,224 | |||||||||||||||||||||||||||
Related tax expense (benefit) | Income tax expense | 4,436 | (755) | 9,403 | (897) | |||||||||||||||||||||||||||
Total reclassification adjustment for (gains) losses included in net income, net of tax | $ | (11,568) | $ | 1,958 | $ | (68,733) | $ | 5,145 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Balance, beginning of period, net of tax | $ | 152,556 | $ | 13,828 | $ | (2,130) | $ | 0 | ||||||||||||||||||
Net increase in fair value, net of tax | 0 | 7,077 | 167,639 | 20,536 | ||||||||||||||||||||||
Net realized (gain) loss reclassified to net income, net of tax | (11,568) | 1,958 | (24,521) | 2,327 | ||||||||||||||||||||||
Balance, end of period, net of tax | $ | 140,988 | $ | 22,863 | $ | 140,988 | $ | 22,863 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Balance, beginning of period, net of tax | $ | 163,999 | $ | 797 | $ | (2,130 | ) | $ | — | |||||||
Net increase in fair value, net of tax | — | 12,664 | 167,639 | 13,459 | ||||||||||||
Net realized (gain) loss reclassified to net income, net of tax | (11,443 | ) | 367 | (12,953 | ) | 369 | ||||||||||
Balance, end of period, net of tax | $ | 152,556 | $ | 13,828 | $ | 152,556 | $ | 13,828 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars and shares in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Net income available to common stockholders | $ | 441,713 | $ | 267,281 | $ | 802,901 | $ | 874,000 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average common shares outstanding—basic | 51,773 | 51,545 | 51,640 | 52,025 | ||||||||||||||||||||||
Weighted average effect of dilutive securities: | ||||||||||||||||||||||||||
Stock options and ESPP | 141 | 203 | 147 | 238 | ||||||||||||||||||||||
Restricted stock units and awards | 232 | 110 | 163 | 168 | ||||||||||||||||||||||
Weighted average common shares outstanding—diluted | 52,146 | 51,858 | 51,950 | 52,431 | ||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||
Basic | $ | 8.53 | $ | 5.19 | $ | 15.55 | $ | 16.80 | ||||||||||||||||||
Diluted | 8.47 | 5.15 | 15.46 | 16.67 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars and shares in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Numerator: | ||||||||||||||||
Net income available to common stockholders | $ | 228,935 | $ | 317,987 | $ | 361,188 | $ | 606,719 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding—basic | 51,581 | 51,955 | 51,573 | 52,269 | ||||||||||||
Weighted average effect of dilutive securities: | ||||||||||||||||
Stock options and ESPP | 114 | 235 | 140 | 254 | ||||||||||||
Restricted stock units and awards | 100 | 146 | 135 | 192 | ||||||||||||
Weighted average common shares outstanding—diluted | 51,795 | 52,336 | 51,848 | 52,715 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 4.44 | $ | 6.12 | $ | 7.00 | $ | 11.61 | ||||||||
Diluted | 4.42 | 6.08 | 6.97 | 11.51 |
Three months ended June 30, | Six months ended June 30, | |||||||||||
(Shares in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||
Stock options | 288 | 166 | 247 | 128 | ||||||||
Restricted stock units | 312 | 333 | 310 | 228 | ||||||||
Total | 600 | 499 | 557 | 356 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Shares in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Stock options | 319 | 213 | 269 | 154 | ||||||||||||||||||||||
Restricted stock units | 55 | 432 | 83 | 294 | ||||||||||||||||||||||
Total | 374 | 645 | 352 | 448 |
Series | Description | Amount outstanding (in millions) | Carrying value (in millions) | Shares issued and outstanding | Par Value | Ownership interest per depository share | Liquidation preference per depository share | 2020 dividends paid per depository share | ||||||||||||||||||||||||||||||||||||||||||
Series A | 5.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock | $ | 350 | $ | 340.1 | 350,000 | $ | 0.001 | 1/40th | $ | 25 | $ | 0.90 |
Series | Description | Amount outstanding (in millions) | Carrying value (in millions) | Shares issued and outstanding | Par Value | Ownership interest per depository share | Liquidation preference per depository share | 2020 dividends paid per depository share | ||||||||||||||||||
Series A | 5.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock | $ | 350 | $ | 340.1 | 350,000 | $ | 0.001 | 1/40th | $ | 25 | $ | 0.57 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total SVBFG Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 0 | 51,561,719 | $ | 52 | $ | 1,421,565 | $ | 4,051,194 | $ | 81,232 | $ | 5,554,043 | $ | 152,132 | $ | 5,706,175 | |||||||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | — | 19,674 | — | 1,383 | — | — | 1,383 | — | 1,383 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 267,281 | — | 267,281 | 14,437 | 281,718 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | (8,780) | (8,780) | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on AFS securities, net of tax | — | — | — | — | — | 50,638 | 50,638 | — | 50,638 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax | — | — | — | — | — | (270) | (270) | — | (270) | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | — | (4,482) | (4,482) | — | (4,482) | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax | — | — | 9,035 | 9,035 | 9,035 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | 18,782 | — | — | 18,782 | — | 18,782 | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | — | (25,562) | — | — | (5,730) | — | (5,730) | — | (5,730) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 0 | 51,555,831 | $ | 52 | $ | 1,441,730 | $ | 4,312,745 | $ | 136,153 | $ | 5,890,680 | $ | 157,789 | $ | 6,048,469 | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 340,138 | 51,740,714 | $ | 52 | $ | 1,522,728 | $ | 4,841,720 | $ | 614,735 | $ | 7,319,373 | $ | 148,940 | $ | 7,468,313 | |||||||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | — | 47,258 | — | 4,797 | — | — | 4,797 | — | 4,797 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 446,307 | — | 446,307 | 27,748 | 474,055 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | (2,243) | (2,243) | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on AFS securities, net of tax | — | — | — | — | — | 10,018 | 10,018 | — | 10,018 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax | — | — | — | — | — | (266) | (266) | — | (266) | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | — | 7,475 | 7,475 | — | 7,475 | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax | — | — | — | — | — | (11,568) | (11,568) | — | (11,568) | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | 21,408 | — | — | 21,408 | — | 21,408 | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (4,594) | — | (4,594) | — | (4,594) | |||||||||||||||||||||||||||||||||||||||||||||||
Other, net | — | — | — | (15) | — | — | (15) | — | (15) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 340,138 | 51,787,972 | $ | 52 | $ | 1,548,918 | $ | 5,283,433 | $ | 620,394 | $ | 7,792,935 | $ | 174,445 | $ | 7,967,380 |
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 thousands) | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | — | 52,322,105 | $ | 52 | $ | 1,394,130 | $ | 3,963,965 | $ | (15,374 | ) | $ | 5,342,773 | $ | 141,050 | $ | 5,483,823 | |||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | — | 257,684 | — | 10,789 | — | — | 10,789 | — | 10,789 | ||||||||||||||||||||||||||
Net income | — | — | — | — | 317,987 | — | 317,987 | 18,584 | 336,571 | ||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | (7,502 | ) | (7,502 | ) | ||||||||||||||||||||||||
Net change in unrealized gains and losses on AFS securities, net of tax | — | — | — | — | — | 86,186 | 86,186 | — | 86,186 | ||||||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax | — | — | — | — | — | (519 | ) | (519 | ) | — | (519 | ) | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | — | (2,092 | ) | (2,092 | ) | — | (2,092 | ) | |||||||||||||||||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax | — | — | 13,031 | 13,031 | 13,031 | ||||||||||||||||||||||||||||||
Share-based compensation, net | — | — | — | 16,646 | — | — | 16,646 | — | 16,646 | ||||||||||||||||||||||||||
Common stock repurchases | (1,018,070 | ) | (230,758 | ) | (230,758 | ) | (230,758 | ) | |||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | — | 51,561,719 | $ | 52 | $ | 1,421,565 | $ | 4,051,194 | $ | 81,232 | $ | 5,554,043 | $ | 152,132 | $ | 5,706,175 | ||||||||||||||||||
Balance at March 31, 2020 | $ | 340,138 | 51,490,342 | $ | 52 | $ | 1,489,240 | $ | 4,612,785 | $ | 592,534 | $ | 7,034,749 | $ | 148,472 | $ | 7,183,221 | ||||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | — | 250,372 | — | 13,925 | — | — | 13,925 | — | 13,925 | ||||||||||||||||||||||||||
Net income | — | — | — | — | 233,529 | — | 233,529 | 14,260 | 247,789 | ||||||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | — | (13,792 | ) | (13,792 | ) | ||||||||||||||||||||||||
Net change in unrealized gains and losses on AFS securities, net of tax | — | — | — | — | — | 33,784 | 33,784 | — | 33,784 | ||||||||||||||||||||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax | — | — | — | — | — | (100 | ) | (100 | ) | — | (100 | ) | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | — | (40 | ) | (40 | ) | — | (40 | ) | |||||||||||||||||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax | — | — | — | — | — | (11,443 | ) | (11,443 | ) | — | (11,443 | ) | |||||||||||||||||||||||
Share-based compensation, net | — | — | — | 20,154 | — | — | 20,154 | — | 20,154 | ||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (4,594 | ) | — | (4,594 | ) | — | (4,594 | ) | |||||||||||||||||||||||
Other, net | — | — | — | (591 | ) | — | — | (591 | ) | — | (591 | ) | |||||||||||||||||||||||
Balance at June 30, 2020 | $ | 340,138 | 51,740,714 | $ | 52 | $ | 1,522,728 | $ | 4,841,720 | $ | 614,735 | $ | 7,319,373 | $ | 148,940 | $ | 7,468,313 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Share-based compensation expense | $ | 20,154 | $ | 16,646 | $ | 39,325 | $ | 31,768 | ||||||||
Income tax benefit related to share-based compensation expense | (4,727 | ) | (3,817 | ) | (9,167 | ) | (7,144 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Share-based compensation expense | $ | 21,408 | $ | 18,782 | $ | 60,733 | $ | 50,550 | ||||||||||||||||||
Income tax benefit related to share-based compensation expense | (5,560) | (4,883) | (14,726) | (12,028) |
(Dollars in thousands) | Unrecognized Expense | Weighted Average Expected Recognition Period - in Years | ||||
Stock options | $ | 17,048 | 2.78 | |||
Restricted stock units and awards | 134,908 | 2.85 | ||||
Total unrecognized share-based compensation expense | $ | 151,956 |
(Dollars in thousands) | Unrecognized Expense | Weighted Average Expected Recognition Period - in Years | ||||||||||||
Stock options | $ | 15,541 | 2.60 | |||||||||||
Restricted stock units and awards | 125,321 | 2.68 | ||||||||||||
Total unrecognized share-based compensation expense | $ | 140,862 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life - in Years | Aggregate Intrinsic Value of In-The- Money Options | ||||||||||
Outstanding at December 31, 2019 | 625,407 | $ | 169.33 | ||||||||||
Granted | 119,472 | 185.52 | |||||||||||
Exercised | (82,896 | ) | 89.71 | ||||||||||
Forfeited | (11,585 | ) | 226.95 | ||||||||||
Expired | (1,030 | ) | 71.11 | ||||||||||
Outstanding at June 30, 2020 | 649,368 | 181.60 | 4.11 | $ | 32,958,101 | ||||||||
Vested and expected to vest at June 30, 2020 | 622,501 | 180.01 | 4.02 | 32,492,850 | |||||||||
Exercisable at June 30, 2020 | 367,008 | 148.46 | 2.67 | 28,597,666 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life - in Years | Aggregate Intrinsic Value of In-The- Money Options | |||||||||||||||||||||||
Outstanding at December 31, 2019 | 625,407 | $ | 169.33 | |||||||||||||||||||||||
Granted | 123,301 | 186.83 | ||||||||||||||||||||||||
Exercised | (130,330) | 99.72 | ||||||||||||||||||||||||
Forfeited | (15,460) | 231.75 | ||||||||||||||||||||||||
Expired | (1,030) | 71.11 | ||||||||||||||||||||||||
Outstanding at September 30, 2020 | 601,888 | 186.55 | 4.08 | $ | 38,405,994 | |||||||||||||||||||||
Vested and expected to vest at September 30, 2020 | 578,024 | 185.26 | 4.00 | $ | 37,654,264 | |||||||||||||||||||||
Exercisable at September 30, 2020 | 317,896 | 152.61 | 2.59 | $ | 30,524,026 |
Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Nonvested at December 31, 2019 | 847,972 | $ | 236.54 | |||||||||||
Granted | 426,071 | 190.79 | ||||||||||||
Vested | (247,370) | 207.82 | ||||||||||||
Forfeited | (49,272) | 226.32 | ||||||||||||
Nonvested at September 30, 2020 | 977,401 | 224.38 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Nonvested at December 31, 2019 | 847,972 | $ | 236.54 | ||||
Granted | 402,546 | 188.64 | |||||
Vested | (238,460 | ) | 207.50 | ||||
Forfeited | (39,817 | ) | 227.23 | ||||
Nonvested at June 30, 2020 | 972,241 | 224.21 |
(Dollars in thousands) | Consolidated VIEs | Unconsolidated VIEs | Maximum Exposure to Loss in Unconsolidated VIEs | |||||||||||||||||
September 30, 2020: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 14,082 | $ | 0 | $ | — | ||||||||||||||
Non-marketable and other equity securities (1) | 318,356 | 771,329 | 771,329 | |||||||||||||||||
Accrued interest receivable and other assets | 853 | 0 | — | |||||||||||||||||
Total assets | $ | 333,291 | $ | 771,329 | $ | 771,329 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Other liabilities (1) | 1,500 | 332,031 | — | |||||||||||||||||
Total liabilities | $ | 1,500 | $ | 332,031 | $ | — | ||||||||||||||
December 31, 2019: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 7,629 | $ | 0 | $ | — | ||||||||||||||
Non-marketable and other equity securities (1) | 270,057 | 689,360 | 689,360 | |||||||||||||||||
Accrued interest receivable and other assets | 1,117 | 0 | — | |||||||||||||||||
Total assets | $ | 278,803 | $ | 689,360 | $ | 689,360 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Other liabilities (1) | 2,854 | 302,031 | — | |||||||||||||||||
Total liabilities | $ | 2,854 | $ | 302,031 | $ | — |
(Dollars in thousands) | Consolidated VIEs | Unconsolidated VIEs | Maximum Exposure to Loss in Unconsolidated VIEs | |||||||||
June 30, 2020: | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 9,363 | $ | — | $ | — | ||||||
Non-marketable and other equity securities (1) | 274,685 | 726,879 | 726,879 | |||||||||
Accrued interest receivable and other assets | 607 | — | — | |||||||||
Total assets | $ | 284,655 | $ | 726,879 | $ | 726,879 | ||||||
Liabilities: | ||||||||||||
Other liabilities (1) | 1,447 | 332,935 | — | |||||||||
Total liabilities | $ | 1,447 | $ | 332,935 | $ | — | ||||||
December 31, 2019: | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 7,629 | $ | — | $ | — | ||||||
Non-marketable and other equity securities (1) | 270,057 | 689,360 | 689,360 | |||||||||
Accrued interest receivable and other assets | 1,117 | — | — | |||||||||
Total assets | $ | 278,803 | $ | 689,360 | $ | 689,360 | ||||||
Liabilities: | ||||||||||||
Other liabilities (1) | 2,854 | 302,031 | — | |||||||||
Total liabilities | $ | 2,854 | $ | 302,031 | $ | — |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Cash and due from banks (1) | $ | 15,237,612 | $ | 6,492,443 | ||||||||||
Securities purchased under agreements to resell (2) | 450,164 | 289,340 | ||||||||||||
Total cash and cash equivalents | $ | 15,687,776 | $ | 6,781,783 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Cash and due from banks (1) | $ | 13,885,058 | $ | 6,492,443 | ||||
Securities purchased under agreements to resell (2) | 317,048 | 289,340 | ||||||
Total cash and cash equivalents | $ | 14,202,106 | $ | 6,781,783 |
(2)At September 30, 2020 and December 31, 2019, securities purchased under agreements to resell were collateralized by U.S. Treasury securities and U.S. agency securities with aggregate fair values of $459.1 million and $295.3 million, respectively. None of these securities were sold or repledged as of September 30, 2020 and December 31, 2019. 6. Investment Securities |
September 30, 2020 | ||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | ||||||||||||||||||||||
Available-for-sale securities, at fair value: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,251,342 | $ | 295,952 | $ | 0 | $ | 4,547,294 | ||||||||||||||||||
U.S. agency debentures | 150,000 | 2,526 | 0 | 152,526 | ||||||||||||||||||||||
Foreign government debt securities | 23,452 | 0 | (3) | 23,449 | ||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 9,569,724 | 200,691 | (102) | 9,770,313 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 7,277,652 | 45,809 | (7,488) | 7,315,973 | ||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 3,965,370 | 130,384 | (985) | 4,094,769 | ||||||||||||||||||||||
Total available-for-sale securities | $ | 25,237,540 | $ | 675,362 | $ | (8,578) | $ | 25,904,324 |
June 30, 2020 | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | ||||||||||||
Available-for-sale securities, at fair value: | ||||||||||||||||
U.S. Treasury securities | $ | 4,229,988 | $ | 305,252 | $ | (5 | ) | $ | 4,535,235 | |||||||
U.S. agency debentures | 100,000 | 2,659 | — | 102,659 | ||||||||||||
Foreign government debt securities | 22,540 | — | (15 | ) | 22,525 | |||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | 7,465,130 | 193,484 | (3,058 | ) | 7,655,556 | |||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 2,949,805 | 31,229 | (1,494 | ) | 2,979,540 | |||||||||||
Agency-issued commercial mortgage-backed securities | 3,033,126 | 123,276 | (4 | ) | 3,156,398 | |||||||||||
Total available-for-sale securities | $ | 17,800,589 | $ | 655,900 | $ | (4,576 | ) | $ | 18,451,913 |
December 31, 2019 | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | ||||||||||||
Available-for-sale securities, at fair value: | ||||||||||||||||
U.S. Treasury securities | $ | 6,815,874 | $ | 82,267 | $ | (4,131 | ) | $ | 6,894,010 | |||||||
U.S. agency debentures | 100,000 | — | (453 | ) | 99,547 | |||||||||||
Foreign government debt securities | 9,037 | 1 | — | 9,038 | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | 4,109,372 | 39,438 | (19 | ) | 4,148,791 | |||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 1,520,414 | 17,929 | — | 1,538,343 | ||||||||||||
Agency-issued commercial mortgage-backed securities | 1,339,651 | 1,078 | (15,539 | ) | 1,325,190 | |||||||||||
Total available-for-sale securities | $ | 13,894,348 | $ | 140,713 | $ | (20,142 | ) | $ | 14,014,919 |
December 31, 2019 | ||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | ||||||||||||||||||||||
Available-for-sale securities, at fair value: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | 6,815,874 | $ | 82,267 | $ | (4,131) | $ | 6,894,010 | ||||||||||||||||||
U.S. agency debentures | 100,000 | 0 | (453) | 99,547 | ||||||||||||||||||||||
Foreign government debt securities | 9,037 | 1 | 0 | 9,038 | ||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 4,109,372 | 39,438 | (19) | 4,148,791 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 1,520,414 | 17,929 | 0 | 1,538,343 | ||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 1,339,651 | 1,078 | (15,539) | 1,325,190 | ||||||||||||||||||||||
Total available-for-sale securities | $ | 13,894,348 | $ | 140,713 | $ | (20,142) | $ | 14,014,919 |
�� | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Sales proceeds | $ | — | $ | 1,017,523 | $ | 2,654,212 | $ | 2,189,087 | ||||||||
Net realized gains and losses: | ||||||||||||||||
Gross realized gains | — | 1,250 | 61,165 | 1,250 | ||||||||||||
Gross realized losses | — | (1,525 | ) | — | (5,155 | ) | ||||||||||
Net realized gains (losses) | $ | — | $ | (275 | ) | $ | 61,165 | $ | (3,905 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Sales proceeds | $ | 0 | $ | 0 | $ | 2,654,212 | $ | 2,189,087 | ||||||||||||||||||
Net realized gains and losses: | ||||||||||||||||||||||||||
Gross realized gains | 0 | 0 | 61,165 | 1,250 | ||||||||||||||||||||||
Gross realized losses | 0 | 0 | 0 | (5,155) | ||||||||||||||||||||||
Net realized gains (losses) | $ | 0 | $ | 0 | $ | 61,165 | $ | (3,905) |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer (1) | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||
Foreign government debt securities | $ | 23,449 | $ | (3) | $ | 0 | $ | 0 | $ | 23,449 | $ | (3) | ||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 179,050 | (102) | 0 | 0 | 179,050 | (102) | ||||||||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 1,772,593 | (7,488) | 0 | 0 | 1,772,593 | (7,488) | ||||||||||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 518,223 | (985) | 0 | 0 | 518,223 | (985) | ||||||||||||||||||||||||||||||||
Total available-for-sale securities (1) | $ | 2,493,315 | $ | (8,578) | $ | 0 | $ | 0 | $ | 2,493,315 | $ | (8,578) |
June 30, 2020 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer (1) | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
U.S. Treasury securities | $ | 10,057 | $ | (5 | ) | $ | — | $ | — | $ | 10,057 | $ | (5 | ) | ||||||||||
Foreign government debt securities | 22,525 | (15 | ) | — | — | 22,525 | (15 | ) | ||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 1,424,857 | (3,058 | ) | — | — | 1,424,857 | (3,058 | ) | ||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 474,025 | (1,494 | ) | — | — | 474,025 | (1,494 | ) | ||||||||||||||||
Agency-issued commercial mortgage-backed securities | 101,480 | (4 | ) | — | — | 101,480 | (4 | ) | ||||||||||||||||
Total available-for-sale securities (1) | $ | 2,032,944 | $ | (4,576 | ) | $ | — | $ | — | $ | 2,032,944 | $ | (4,576 | ) |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer (1) | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 971,572 | $ | (3,996) | $ | 449,850 | $ | (135) | $ | 1,421,422 | $ | (4,131) | ||||||||||||||||||||||||||
U.S. agency debentures | 99,547 | (453) | 0 | 0 | 99,547 | (453) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 4,014 | (19) | 0 | 0 | 4,014 | (19) | ||||||||||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 1,027,232 | (15,539) | 0 | 0 | 1,027,232 | (15,539) | ||||||||||||||||||||||||||||||||
Total available-for-sale securities (1) | $ | 2,102,365 | $ | (20,007) | $ | 449,850 | $ | (135) | $ | 2,552,215 | $ | (20,142) |
December 31, 2019 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer (1) | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
U.S. Treasury securities | $ | 971,572 | $ | (3,996 | ) | $ | 449,850 | $ | (135 | ) | $ | 1,421,422 | $ | (4,131 | ) | |||||||||
U.S. agency debentures | 99,547 | (453 | ) | — | — | 99,547 | (453 | ) | ||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 4,014 | (19 | ) | — | — | 4,014 | (19 | ) | ||||||||||||||||
Agency-issued commercial mortgage-backed securities | 1,027,232 | (15,539 | ) | — | — | 1,027,232 | (15,539 | ) | ||||||||||||||||
Total available-for-sale securities (1) | $ | 2,102,365 | $ | (20,007 | ) | $ | 449,850 | $ | (135 | ) | $ | 2,552,215 | $ | (20,142 | ) |
(1) |
September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | |||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,547,294 | $ | 60,221 | $ | 2,989,181 | $ | 1,497,892 | $ | 0 | ||||||||||||||||||||||
U.S. agency debentures | 152,526 | 0 | 0 | 152,526 | 0 | |||||||||||||||||||||||||||
Foreign government debt securities | 23,449 | 23,449 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 9,770,313 | 0 | 0 | 0 | 9,770,313 | |||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 7,315,973 | 0 | 0 | 0 | 7,315,973 | |||||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 4,094,769 | 0 | 0 | 1,431,547 | 2,663,222 | |||||||||||||||||||||||||||
Total | $ | 25,904,324 | $ | 83,670 | $ | 2,989,181 | $ | 3,081,965 | $ | 19,749,508 |
June 30, 2020 | ||||||||||||||||||||
(Dollars in thousands) | Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | |||||||||||||||
U.S. Treasury securities | $ | 4,535,235 | $ | 85,518 | $ | 2,613,342 | $ | 1,836,375 | $ | — | ||||||||||
U.S. agency debentures | 102,659 | — | — | 102,659 | — | |||||||||||||||
Foreign government debt securities | 22,525 | 22,525 | — | — | — | |||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Agency-issued mortgage-backed securities | 7,655,556 | — | — | — | 7,655,556 | |||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 2,979,540 | — | 491 | — | 2,979,049 | |||||||||||||||
Agency-issued commercial mortgage-backed securities | 3,156,398 | — | — | 1,347,235 | 1,809,163 | |||||||||||||||
Total | $ | 18,451,913 | $ | 108,043 | $ | 2,613,833 | $ | 3,286,269 | $ | 12,443,768 |
September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Allowance for Credit Losses (2) | |||||||||||||||||||||||||||
Held-to-maturity securities, at cost: | ||||||||||||||||||||||||||||||||
U.S. agency debentures (1) | $ | 402,346 | $ | 19,496 | $ | 0 | $ | 421,842 | $ | 0 | ||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 5,363,541 | 266,455 | (62) | 5,629,934 | 0 | |||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations —fixed rate | 1,909,965 | 26,601 | (437) | 1,936,129 | 0 | |||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 147,714 | 362 | 0 | 148,076 | 0 | |||||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 2,229,811 | 154,061 | 0 | 2,383,872 | 0 | |||||||||||||||||||||||||||
Municipal bonds and notes | 2,929,137 | 171,591 | (8,118) | 3,092,610 | 291 | |||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 12,982,514 | $ | 638,566 | $ | (8,617) | $ | 13,612,463 | $ | 291 |
June 30, 2020 | ||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Allowance for Credit Losses (2) | |||||||||||||||
Held-to-maturity securities, at cost: | ||||||||||||||||||||
U.S. agency debentures (1) | $ | 453,280 | $ | 20,657 | $ | — | $ | 473,937 | $ | — | ||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Agency-issued mortgage-backed securities | 6,086,154 | 310,266 | (46 | ) | 6,396,374 | — | ||||||||||||||
Agency-issued collateralized mortgage obligations —fixed rate | 1,518,848 | 26,124 | — | 1,544,972 | — | |||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 162,250 | 1,403 | (223 | ) | 163,430 | — | ||||||||||||||
Agency-issued commercial mortgage-backed securities | 2,484,072 | 162,042 | — | 2,646,114 | — | |||||||||||||||
Municipal bonds and notes | 2,154,441 | 162,193 | — | 2,316,634 | 222 | |||||||||||||||
Total held-to-maturity securities | $ | 12,859,045 | $ | 682,685 | $ | (269 | ) | $ | 13,541,461 | $ | 222 |
December 31, 2019 | ||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||
Held-to-maturity securities, at amortized cost: | ||||||||||||||||||||||||||
U.S. agency debentures (1) | $ | 518,728 | $ | 6,640 | $ | (668) | $ | 524,700 | ||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 6,992,009 | 142,209 | (2,066) | 7,132,152 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 1,608,032 | 592 | (8,502) | 1,600,122 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 178,611 | 94 | (259) | 178,446 | ||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 2,759,615 | 56,914 | (4,508) | 2,812,021 | ||||||||||||||||||||||
Municipal bonds and notes | 1,785,951 | 83,314 | (1,434) | 1,867,831 | ||||||||||||||||||||||
Total held-to-maturity securities | $ | 13,842,946 | $ | 289,763 | $ | (17,437) | $ | 14,115,272 |
December 31, 2019 | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Held-to-maturity securities, at amortized cost: | ||||||||||||||||
U.S. agency debentures (1) | $ | 518,728 | $ | 6,640 | $ | (668 | ) | $ | 524,700 | |||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | 6,992,009 | 142,209 | (2,066 | ) | 7,132,152 | |||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 1,608,032 | 592 | (8,502 | ) | 1,600,122 | |||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 178,611 | 94 | (259 | ) | 178,446 | |||||||||||
Agency-issued commercial mortgage-backed securities | 2,759,615 | 56,914 | (4,508 | ) | 2,812,021 | |||||||||||
Municipal bonds and notes | 1,785,951 | 83,314 | (1,434 | ) | 1,867,831 | |||||||||||
Total held-to-maturity securities | $ | 13,842,946 | $ | 289,763 | $ | (17,437 | ) | $ | 14,115,272 |
(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. |
Three months ended September 30, | Beginning Balance June 30, 2020 | Provision for Credit Losses | Ending Balance September 30, 2020 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Municipal bonds and notes | $ | 222 | $ | 69 | $ | 291 | ||||||||||||||
Total allowance for credit losses | $ | 222 | $ | 69 | $ | 291 |
Three months ended June 30, 2020 | Beginning Balance March 31, 2020 | Day One Impact of adopting ASC 326 | Provision for Credit Losses | Ending Balance June 30, 2020 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Municipal bonds and notes | $ | 230 | $ | — | $ | (8 | ) | $ | 222 | |||||||
Total allowance for credit losses | $ | 230 | $ | — | $ | (8 | ) | $ | 222 |
Six months ended June 30, 2020 | Beginning Balance December 31, 2019 | Day One Impact of adopting ASC 326 | Provision for Credit Losses | Ending Balance June 30, 2020 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Municipal bonds and notes | $ | — | $ | 174 | $ | 48 | $ | 222 | ||||||||
Total allowance for credit losses | $ | — | $ | 174 | $ | 48 | $ | 222 |
Nine months ended September 30, | Beginning Balance December 31, 2019 | Day One Impact of adopting ASC 326 | Provision for Credit Losses | Ending Balance September 30, 2020 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Municipal bonds and notes | $ | 0 | $ | 174 | $ | 117 | $ | 291 | ||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 0 | $ | 174 | $ | 117 | $ | 291 |
(Dollars in thousands) | September 30, 2020 | |||||||
Municipal bonds and notes: | ||||||||
Aaa | $ | 1,732,450 | ||||||
Aa1 | 935,970 | |||||||
Aa2 | 259,767 | |||||||
Aa3 | 950 | |||||||
Total | $ | 2,929,137 |
(Dollars in thousands) | June 30, 2020 | |||
Municipal bonds and notes: | ||||
Aaa | $ | 1,456,716 | ||
Aa1 | 475,395 | |||
Aa2 | 220,960 | |||
Aa3 | 1,370 | |||
Total | $ | 2,154,441 |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency debentures | $ | 402,346 | $ | 421,842 | $ | 4,675 | $ | 4,720 | $ | 148,559 | $ | 153,787 | $ | 249,112 | $ | 263,335 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 5,363,541 | 5,629,934 | 7,113 | 7,432 | 28,722 | 29,739 | 588,606 | 609,151 | 4,739,100 | 4,983,612 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 1,909,965 | 1,936,129 | 0 | 0 | 0 | 0 | 551,213 | 563,127 | 1,358,752 | 1,373,002 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 147,714 | 148,076 | 0 | 0 | 0 | 0 | 0 | 0 | 147,714 | 148,076 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 2,229,811 | 2,383,872 | 0 | 0 | 0 | 0 | 102,428 | 120,085 | 2,127,383 | 2,263,787 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds and notes | 2,929,137 | 3,092,610 | 44,340 | 44,839 | 134,029 | 140,191 | 540,308 | 587,096 | 2,210,460 | 2,320,484 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,982,514 | $ | 13,612,463 | $ | 56,128 | $ | 56,991 | $ | 311,310 | $ | 323,717 | $ | 2,031,667 | $ | 2,142,794 | $ | 10,583,409 | $ | 11,088,961 |
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
U.S. agency debentures | $ | 453,280 | $ | 473,937 | $ | 2,622 | $ | 2,666 | $ | 142,917 | $ | 147,089 | $ | 307,741 | $ | 324,182 | $ | — | $ | — | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 6,086,154 | 6,396,374 | 8,369 | 8,467 | 40,337 | 41,199 | 640,876 | 664,186 | 5,396,572 | 5,682,522 | ||||||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 1,518,848 | 1,544,972 | — | — | — | — | 612,478 | 625,694 | 906,370 | 919,278 | ||||||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 162,250 | 163,430 | — | — | — | — | — | — | 162,250 | 163,430 | ||||||||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 2,484,072 | 2,646,114 | — | — | — | — | 102,497 | 120,165 | 2,381,575 | 2,525,949 | ||||||||||||||||||||||||||||||
Municipal bonds and notes | 2,154,441 | 2,316,634 | 31,814 | 32,094 | 142,152 | 147,934 | 479,079 | 517,215 | 1,501,396 | 1,619,391 | ||||||||||||||||||||||||||||||
Total | $ | 12,859,045 | $ | 13,541,461 | $ | 42,805 | $ | 43,227 | $ | 325,406 | $ | 336,222 | $ | 2,142,671 | $ | 2,251,442 | $ | 10,348,163 | $ | 10,910,570 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Non-marketable and other equity securities: | ||||||||
Non-marketable securities (fair value accounting): | ||||||||
Consolidated venture capital and private equity fund investments (1) | 68,214 | $ | 87,180 | |||||
Unconsolidated venture capital and private equity fund investments (2) | 145,122 | 178,217 | ||||||
Other investments without a readily determinable fair value (3) | 56,206 | 55,255 | ||||||
Other equity securities in public companies (fair value accounting) (4) | 45,288 | 59,200 | ||||||
Non-marketable securities (equity method accounting) (5): | ||||||||
Venture capital and private equity fund investments | 233,996 | 215,367 | ||||||
Debt funds | 7,004 | 7,271 | ||||||
Other investments | 181,543 | 152,863 | ||||||
Investments in qualified affordable housing projects, net (6) | 533,205 | 458,476 | ||||||
Total non-marketable and other equity securities | $ | 1,270,578 | $ | 1,213,829 |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Non-marketable and other equity securities: | ||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||
Consolidated venture capital and private equity fund investments (1) | $ | 74,293 | $ | 87,180 | ||||||||||
Unconsolidated venture capital and private equity fund investments (2) | 152,367 | 178,217 | ||||||||||||
Other investments without a readily determinable fair value (3) | 56,008 | 55,255 | ||||||||||||
Other equity securities in public companies (fair value accounting) (4) | 229,297 | 59,200 | ||||||||||||
Non-marketable securities (equity method accounting) (5): | ||||||||||||||
Venture capital and private equity fund investments | 274,721 | 215,367 | ||||||||||||
Debt funds | 6,918 | 7,271 | ||||||||||||
Other investments | 192,776 | 152,863 | ||||||||||||
Investments in qualified affordable housing projects, net (6) | 560,983 | 458,476 | ||||||||||||
Total non-marketable and other equity securities | $ | 1,547,363 | $ | 1,213,829 |
(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 September 30, 2020 and December 31, 2019 (fair value accounting):
|
June 30, 2020 | December 31, 2019 | |||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||
Strategic Investors Fund, LP | $ | 4,414 | 12.6 | % | $ | 5,729 | 12.6 | % | ||||||
Capital Preferred Return Fund, LP | 36,890 | 20.0 | 45,341 | 20.0 | ||||||||||
Growth Partners, LP | 26,776 | 33.0 | 35,976 | 33.0 | ||||||||||
CP I, LP | 134 | 10.7 | 134 | 10.7 | ||||||||||
Total consolidated venture capital and private equity fund investments | $ | 68,214 | $ | 87,180 |
(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. 28 |
(Dollars in thousands) | Nine months ended September 30, 2020 | Cumulative Adjustments | ||||||||||||
Measurement alternative: | ||||||||||||||
Carrying value at September 30, 2020 | $ | 56,008 | ||||||||||||
Carrying value adjustments: | ||||||||||||||
Impairment | $ | (487) | $ | (947) | ||||||||||
Upward changes for observable prices | 1,438 | 2,236 | ||||||||||||
Downward changes for observable prices | (6,210) | (8,918) |
(Dollars in thousands) | Six months ended June 30, 2020 | Cumulative Adjustments | ||||||
Measurement alternative: | ||||||||
Carrying value at June 30, 2020 | $ | 56,206 | ||||||
Carrying value adjustments: | ||||||||
Impairment | $ | — | $ | (460 | ) | |||
Upward changes for observable prices | — | 1,810 | ||||||
Downward changes for observable prices | (3,076 | ) | (7,671 | ) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||||||||||||||
Venture capital and private equity fund investments: | ||||||||||||||||||||||||||
Strategic Investors Fund II, LP | $ | 3,519 | 8.6 | % | $ | 3,612 | 8.6 | % | ||||||||||||||||||
Strategic Investors Fund III, LP | 14,984 | 5.9 | 15,668 | 5.9 | ||||||||||||||||||||||
Strategic Investors Fund IV, LP | 25,451 | 5.0 | 27,064 | 5.0 | ||||||||||||||||||||||
Strategic Investors Fund V funds | 52,575 | Various | 46,830 | Various | ||||||||||||||||||||||
CP II, LP (i) | 4,773 | 5.1 | 5,907 | 5.1 | ||||||||||||||||||||||
Other venture capital and private equity fund investments | 173,419 | Various | 116,286 | Various | ||||||||||||||||||||||
Total venture capital and private equity fund investments | $ | 274,721 | $ | 215,367 | ||||||||||||||||||||||
Debt funds: | ||||||||||||||||||||||||||
Gold Hill Capital 2008, LP (ii) | $ | 5,317 | 15.5 | % | $ | 5,525 | 15.5 | % | ||||||||||||||||||
Other debt funds | 1,601 | Various | 1,746 | Various | ||||||||||||||||||||||
Total debt funds | $ | 6,918 | $ | 7,271 | ||||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||
SPD Silicon Valley Bank Co., Ltd. | $ | 107,969 | 50.0 | % | $ | 74,190 | 50.0 | % | ||||||||||||||||||
Other investments | 84,807 | Various | 78,673 | Various | ||||||||||||||||||||||
Total other investments | $ | 192,776 | $ | 152,863 |
June 30, 2020 | December 31, 2019 | |||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||
Venture capital and private equity fund investments: | ||||||||||||||
Strategic Investors Fund II, LP | $ | 3,083 | 8.6 | % | $ | 3,612 | 8.6 | % | ||||||
Strategic Investors Fund III, LP | 14,211 | 5.9 | 15,668 | 5.9 | ||||||||||
Strategic Investors Fund IV, LP | 24,743 | 5.0 | 27,064 | 5.0 | ||||||||||
Strategic Investors Fund V funds | 47,734 | Various | 46,830 | Various | ||||||||||
CP II, LP (i) | 4,646 | 5.1 | 5,907 | 5.1 | ||||||||||
Other venture capital and private equity fund investments | 139,579 | Various | 116,286 | Various | ||||||||||
Total venture capital and private equity fund investments | $ | 233,996 | $ | 215,367 | ||||||||||
Debt funds: | ||||||||||||||
Gold Hill Capital 2008, LP (ii) | $ | 5,334 | 15.5 | % | $ | 5,525 | 15.5 | % | ||||||
Other debt funds | 1,670 | Various | 1,746 | Various | ||||||||||
Total debt funds | $ | 7,004 | $ | 7,271 | ||||||||||
Other investments: | ||||||||||||||
SPD Silicon Valley Bank Co., Ltd. | $ | 105,863 | 50.0 | % | $ | 74,190 | 50.0 | % | ||||||
Other investments | 75,680 | Various | 78,673 | Various | ||||||||||
Total other investments | $ | 181,543 | $ | 152,863 |
(ii)Our ownership includes direct ownership interest of 11.5 percent in the fund 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 September 30, 2020 and December 31, 2019:
|
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Investments in qualified affordable housing projects, net | $ | 533,205 | $ | 458,476 | ||||
Other liabilities | 332,935 | 302,031 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Tax credits and other tax benefits recognized | $ | 15,290 | $ | 8,705 | $ | 46,772 | $ | 28,950 | ||||||||||||||||||
Amortization expense included in provision for income taxes (i) | 10,222 | 6,042 | 32,081 | 20,436 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Tax credits and other tax benefits recognized | $ | 19,723 | $ | 10,988 | $ | 31,482 | $ | 20,245 | ||||||||
Amortization expense included in provision for income taxes (i) | 10,388 | 6,758 | 21,859 | 14,394 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Net gains (losses) on non-marketable and other equity securities: | ||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||
Consolidated venture capital and private equity fund investments | $ | 8,778 | $ | 4,555 | $ | 13,168 | $ | 22,674 | ||||||||||||||||||
Unconsolidated venture capital and private equity fund investments | 16,400 | 8,530 | 15,187 | 26,688 | ||||||||||||||||||||||
Other investments without a readily determinable fair value | 217 | (471) | (3,619) | 4,701 | ||||||||||||||||||||||
Other equity securities in public companies (fair value accounting) | 112,615 | (11,979) | 118,099 | 106 | ||||||||||||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||||||||||||
Venture capital and private equity fund investments | 51,334 | 29,049 | 69,681 | 54,189 | ||||||||||||||||||||||
Debt funds | 15 | 187 | (253) | 1,529 | ||||||||||||||||||||||
Other investments | 478 | (22) | (2,668) | 593 | ||||||||||||||||||||||
Total net gains on non-marketable and other equity securities | $ | 189,837 | $ | 29,849 | $ | 209,595 | $ | 110,480 | ||||||||||||||||||
Less: realized net gains on sales of non-marketable and other equity securities | 5,262 | 277 | 5,477 | 12,637 | ||||||||||||||||||||||
Net gains on non-marketable and other equity securities still held | $ | 184,575 | $ | 29,572 | $ | 204,118 | $ | 97,843 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net gains (losses) on non-marketable and other equity securities: | ||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Consolidated venture capital and private equity fund investments | $ | 1,277 | $ | 14,830 | $ | 4,390 | $ | 18,119 | ||||||||
Unconsolidated venture capital and private equity fund investments | (2,465 | ) | 10,152 | (1,213 | ) | 18,158 | ||||||||||
Other investments without a readily determinable fair value | (893 | ) | 167 | (3,836 | ) | 5,172 | ||||||||||
Other equity securities in public companies (fair value accounting) | 12,988 | 282 | 5,484 | 12,085 | ||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||
Venture capital and private equity fund investments | 26,393 | 22,351 | 18,347 | 25,140 | ||||||||||||
Debt funds | 94 | 1,342 | (268 | ) | 1,342 | |||||||||||
Other investments | (2,526 | ) | (1,151 | ) | (3,146 | ) | 615 | |||||||||
Total net gains on non-marketable and other equity securities | $ | 34,868 | $ | 47,973 | $ | 19,758 | $ | 80,631 | ||||||||
Less: realized net gains on sales of non-marketable and other equity securities | 264 | 2,524 | 215 | 12,359 | ||||||||||||
Net gains on non-marketable and other equity securities still held | $ | 34,604 | $ | 45,449 | $ | 19,543 | $ | 68,272 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Private equity/venture capital | $ | 17,901,117 | $ | 17,696,794 | ||||
Investor dependent: | ||||||||
Early stage | 1,797,576 | 1,624,221 | ||||||
Mid stage | 1,435,772 | 1,047,398 | ||||||
Later stage | 1,905,528 | 1,663,576 | ||||||
Total investor dependent | 5,138,876 | 4,335,195 | ||||||
Cash flow dependent: | ||||||||
Sponsor led buyout | 2,057,439 | 2,185,497 | ||||||
Other | 2,787,807 | 2,238,741 | ||||||
Total cash flow dependent | 4,845,246 | 4,424,238 | ||||||
Private bank (4) | 3,816,277 | 3,492,269 | ||||||
Balance sheet dependent | 1,693,071 | 1,286,153 | ||||||
Premium wine (4) | 1,039,456 | 1,062,264 | ||||||
Other (4) | 457,234 | 867,723 | ||||||
SBA loans | 1,835,945 | — | ||||||
Total loans (1) (2) (3) | $ | 36,727,222 | $ | 33,164,636 | ||||
Allowance for credit losses | (589,828 | ) | (304,924 | ) | ||||
Net loans | $ | 36,137,394 | $ | 32,859,712 |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Global fund banking | $ | 19,584,518 | $ | 17,696,794 | ||||||||||
Investor dependent: | ||||||||||||||
Early stage | 1,470,941 | 1,624,221 | ||||||||||||
Mid stage | 1,626,794 | 1,047,398 | ||||||||||||
Later stage | 2,013,934 | 1,663,576 | ||||||||||||
Total investor dependent | 5,111,669 | 4,335,195 | ||||||||||||
Cash flow dependent: | ||||||||||||||
Sponsor led buyout | 2,062,243 | 2,185,497 | ||||||||||||
Other | 2,600,157 | 2,238,741 | ||||||||||||
Total cash flow dependent | 4,662,400 | 4,424,238 | ||||||||||||
Private bank (1) (5) | 4,424,899 | 3,492,269 | ||||||||||||
Balance sheet dependent | 1,698,220 | 1,286,153 | ||||||||||||
Premium wine (1) (5) | 1,081,963 | 1,062,264 | ||||||||||||
Other (1) (5) | 48,206 | 867,723 | ||||||||||||
SBA loans | 1,802,016 | 0 | ||||||||||||
Total loans (2) (3) (4) | $ | 38,413,891 | $ | 33,164,636 | ||||||||||
Allowance for credit losses | (512,958) | (304,924) | ||||||||||||
Net loans | $ | 37,900,933 | $ | 32,859,712 |
(1) As of September 30, 2020, as a result of enhanced portfolio characteristic definitions for our risk-based segments, loans in the amount of $411.2 million and $50.3 million that would have been reported in Other under historical definitions, are now being reported in our Private Bank and Premium Wine risk-based segments, respectively. (2) Total loans at amortized cost is net of unearned income of$222 million and $163 million at September 30, 2020 and December 31, 2019, respectively. (3) Included within our total loan portfolio are credit card loans of$329 million and $395 million at September 30, 2020 and December 31, 2019, respectively. (4) Included within our total loan portfolio are construction loans of $118 million and $183 million at September 30, 2020 and December 31, 2019, respectively. (5) Of our |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Real estate secured loans: | ||||||||
Private bank: | ||||||||
Loans for personal residence | $ | 2,714,069 | $ | 2,829,880 | ||||
Loans to eligible employees | 439,006 | 401,396 | ||||||
Home equity lines of credit | 58,284 | 55,461 | ||||||
Other | 42,464 | 38,880 | ||||||
Total private bank loans secured by real estate | $ | 3,253,823 | $ | 3,325,617 | ||||
Premium wine | 777,560 | 820,730 | ||||||
Other | 470,567 | — | ||||||
Total real estate secured loans | $ | 4,501,950 | $ | 4,146,347 |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Real estate secured loans: | ||||||||||||||
Private bank: | ||||||||||||||
Loans for personal residence | $ | 3,179,148 | $ | 2,829,880 | ||||||||||
Loans to eligible employees | 449,551 | 401,396 | ||||||||||||
Home equity lines of credit | 50,929 | 55,461 | ||||||||||||
Other | 137,320 | 38,880 | ||||||||||||
Total private bank loans secured by real estate | $ | 3,816,948 | $ | 3,325,617 | ||||||||||
Premium wine | 831,182 | 820,730 | ||||||||||||
Other | 60,501 | 0 | ||||||||||||
Total real estate secured loans | $ | 4,708,631 | $ | 4,146,347 |
(Dollars in thousands) | Pass | Criticized | Nonperforming (Nonaccrual) | Total | ||||||||||||||||||||||
September 30, 2020: | ||||||||||||||||||||||||||
Global fund banking | $ | 19,576,723 | $ | 7,782 | $ | 13 | $ | 19,584,518 | ||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||
Early stage | 1,296,789 | 154,420 | 19,732 | 1,470,941 | ||||||||||||||||||||||
Mid stage | 1,449,525 | 165,642 | 11,627 | 1,626,794 | ||||||||||||||||||||||
Later stage | 1,795,229 | 180,130 | 38,575 | 2,013,934 | ||||||||||||||||||||||
Total investor dependent | 4,541,543 | 500,192 | 69,934 | 5,111,669 | ||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||
Sponsor led buyout | 1,827,943 | 212,708 | 21,592 | 2,062,243 | ||||||||||||||||||||||
Other | 2,314,453 | 279,419 | 6,285 | 2,600,157 | ||||||||||||||||||||||
Total cash flow dependent | 4,142,396 | 492,127 | 27,877 | 4,662,400 | ||||||||||||||||||||||
Private bank | 4,395,531 | 23,936 | 5,432 | 4,424,899 | ||||||||||||||||||||||
Balance sheet dependent | 1,565,597 | 131,947 | 676 | 1,698,220 | ||||||||||||||||||||||
Premium wine | 941,511 | 138,777 | 1,675 | 1,081,963 | ||||||||||||||||||||||
Other | 48,041 | 61 | 104 | 48,206 | ||||||||||||||||||||||
SBA loans | 1,663,383 | 138,633 | 0 | 1,802,016 | ||||||||||||||||||||||
Total loans (1) | $ | 36,874,725 | $ | 1,433,455 | $ | 105,711 | $ | 38,413,891 | ||||||||||||||||||
December 31, 2019: | ||||||||||||||||||||||||||
Global fund banking | $ | 17,708,550 | $ | 4,247 | $ | 0 | $ | 17,712,797 | ||||||||||||||||||
Investor dependent | ||||||||||||||||||||||||||
Early stage | 1,436,022 | 206,310 | 11,093 | 1,653,425 | ||||||||||||||||||||||
Mid stage | 924,002 | 125,451 | 17,330 | 1,066,783 | ||||||||||||||||||||||
Later stage | 1,490,561 | 201,819 | 6,296 | 1,698,676 | ||||||||||||||||||||||
Total investor dependent | 3,850,585 | 533,580 | 34,719 | 4,418,884 | ||||||||||||||||||||||
Cash flow dependent | ||||||||||||||||||||||||||
Sponsor led buyout | 2,039,847 | 118,588 | 44,585 | 2,203,020 | ||||||||||||||||||||||
Other | 2,141,766 | 93,400 | 17,681 | 2,252,847 | ||||||||||||||||||||||
Total cash flow dependent | 4,181,613 | 211,988 | 62,266 | 4,455,867 | ||||||||||||||||||||||
Private bank | 3,472,138 | 11,601 | 5,480 | 3,489,219 | ||||||||||||||||||||||
Balance sheet dependent | 1,231,961 | 65,343 | 0 | 1,297,304 | ||||||||||||||||||||||
Premium wine | 1,026,973 | 36,335 | 204 | 1,063,512 | ||||||||||||||||||||||
Other | 890,059 | 62 | 0 | 890,121 | ||||||||||||||||||||||
Total loans (1) | $ | 32,361,879 | $ | 863,156 | $ | 102,669 | $ | 33,327,704 |
(Dollars in thousands) | Pass | Criticized | Nonperforming (Nonaccrual) | Total | ||||||||||||
June 30, 2020: | ||||||||||||||||
Private equity/venture capital | $ | 17,892,840 | $ | 8,268 | $ | 9 | $ | 17,901,117 | ||||||||
Investor dependent: | ||||||||||||||||
Early stage | 1,549,222 | 223,932 | 24,422 | 1,797,576 | ||||||||||||
Mid stage | 1,259,442 | 168,211 | 8,119 | 1,435,772 | ||||||||||||
Later stage | 1,719,152 | 175,878 | 10,498 | 1,905,528 | ||||||||||||
Total investor dependent | 4,527,816 | 568,021 | 43,039 | 5,138,876 | ||||||||||||
Cash flow dependent: | ||||||||||||||||
Sponsor led buyout | 1,819,253 | 216,528 | 21,658 | 2,057,439 | ||||||||||||
Other | 2,441,376 | 341,114 | 5,317 | 2,787,807 | ||||||||||||
Total cash flow dependent | 4,260,629 | 557,642 | 26,975 | 4,845,246 | ||||||||||||
Private bank | 3,787,830 | 21,930 | 6,517 | 3,816,277 | ||||||||||||
Balance sheet dependent | 1,588,207 | 93,022 | 11,842 | 1,693,071 | ||||||||||||
Premium wine | 926,549 | 111,226 | 1,681 | 1,039,456 | ||||||||||||
Other | 456,947 | 226 | 61 | 457,234 | ||||||||||||
SBA loans | 1,688,030 | 143,713 | 4,202 | 1,835,945 | ||||||||||||
Total loans (1) | $ | 35,128,848 | $ | 1,504,048 | $ | 94,326 | $ | 36,727,222 | ||||||||
December 31, 2019: | ||||||||||||||||
Private equity/venture capital | $ | 17,708,550 | $ | 4,247 | $ | — | $ | 17,712,797 | ||||||||
Investor dependent | ||||||||||||||||
Early stage | 1,436,022 | 206,310 | 11,093 | 1,653,425 | ||||||||||||
Mid stage | 924,002 | 125,451 | 17,330 | 1,066,783 | ||||||||||||
Later stage | 1,490,561 | 201,819 | 6,296 | 1,698,676 | ||||||||||||
Total investor dependent | 3,850,585 | 533,580 | 34,719 | 4,418,884 | ||||||||||||
Cash flow dependent | ||||||||||||||||
Sponsor led buyout | 2,039,847 | 118,588 | 44,585 | 2,203,020 | ||||||||||||
Other | 2,141,766 | 93,400 | 17,681 | 2,252,847 | ||||||||||||
Total cash flow dependent | 4,181,613 | 211,988 | 62,266 | 4,455,867 | ||||||||||||
Private bank | 3,472,138 | 11,601 | 5,480 | 3,489,219 | ||||||||||||
Balance sheet dependent | 1,231,961 | 65,343 | — | 1,297,304 | ||||||||||||
Premium wine | 1,026,973 | 36,335 | 204 | 1,063,512 | ||||||||||||
Other | 890,059 | 62 | — | 890,121 | ||||||||||||
Total loans (1) | $ | 32,361,879 | $ | 863,156 | $ | 102,669 | $ | 33,327,704 |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Global fund banking: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 271,164 | $ | 156,714 | $ | 70,084 | $ | 36,907 | $ | 2,552 | $ | 11,588 | $ | 19,022,934 | $ | 4,780 | $ | 19,576,723 | ||||||||||||||||||||||||||||||||||||||
Criticized | 8 | 0 | 0 | 0 | 0 | 0 | 994 | 6,780 | 7,782 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 0 | 8 | 0 | 0 | 0 | 0 | 5 | 0 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Total global fund banking | $ | 271,172 | $ | 156,722 | $ | 70,084 | $ | 36,907 | $ | 2,552 | $ | 11,588 | $ | 19,023,933 | $ | 11,560 | $ | 19,584,518 | ||||||||||||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Early stage: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 589,224 | $ | 452,550 | $ | 140,448 | $ | 37,911 | $ | 2,430 | $ | 390 | $ | 73,199 | $ | 637 | $ | 1,296,789 | ||||||||||||||||||||||||||||||||||||||
Criticized | 20,744 | 68,381 | 36,841 | 10,878 | 2,530 | 363 | 13,750 | 933 | 154,420 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 2,466 | 8,870 | 6,956 | 463 | 0 | 4 | 973 | 0 | 19,732 | |||||||||||||||||||||||||||||||||||||||||||||||
Total early stage | $ | 612,434 | $ | 529,801 | $ | 184,245 | $ | 49,252 | $ | 4,960 | $ | 757 | $ | 87,922 | $ | 1,570 | $ | 1,470,941 | ||||||||||||||||||||||||||||||||||||||
Mid stage: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 726,708 | $ | 344,458 | $ | 209,372 | $ | 39,603 | $ | 7,510 | $ | 2,725 | $ | 116,655 | $ | 2,494 | $ | 1,449,525 | ||||||||||||||||||||||||||||||||||||||
Criticized | 59,623 | 43,386 | 32,668 | 12,725 | 1,966 | 0 | 15,274 | 0 | 165,642 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 2 | 2,558 | 5,405 | 3,519 | 0 | 0 | 143 | 0 | 11,627 | |||||||||||||||||||||||||||||||||||||||||||||||
Total mid stage | $ | 786,333 | $ | 390,402 | $ | 247,445 | $ | 55,847 | $ | 9,476 | $ | 2,725 | $ | 132,072 | $ | 2,494 | $ | 1,626,794 | ||||||||||||||||||||||||||||||||||||||
Later stage: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 790,085 | $ | 473,800 | $ | 178,768 | $ | 60,009 | $ | 562 | $ | 9,110 | $ | 277,911 | $ | 4,984 | $ | 1,795,229 | ||||||||||||||||||||||||||||||||||||||
Criticized | 17,108 | 72,028 | 30,280 | 2,666 | 0 | 8,708 | 49,340 | 0 | 180,130 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 17,506 | 1,886 | 12,434 | 0 | 0 | 0 | 6,749 | 0 | 38,575 | |||||||||||||||||||||||||||||||||||||||||||||||
Total later stage | $ | 824,699 | $ | 547,714 | $ | 221,482 | $ | 62,675 | $ | 562 | $ | 17,818 | $ | 334,000 | $ | 4,984 | $ | 2,013,934 | ||||||||||||||||||||||||||||||||||||||
Total investor dependent | $ | 2,223,466 | $ | 1,467,917 | $ | 653,172 | $ | 167,774 | $ | 14,998 | $ | 21,300 | $ | 553,994 | $ | 9,048 | $ | 5,111,669 | ||||||||||||||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 534,579 | $ | 601,938 | $ | 326,172 | $ | 226,326 | $ | 50,267 | $ | 0 | $ | 88,661 | $ | 0 | $ | 1,827,943 | ||||||||||||||||||||||||||||||||||||||
Criticized | 43,221 | 70,050 | 53,043 | 21,400 | 12,238 | 0 | 12,756 | 0 | 212,708 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 33 | 11,907 | 0 | 7,200 | 0 | 0 | 2,452 | 0 | 21,592 | |||||||||||||||||||||||||||||||||||||||||||||||
Total sponsor led buyout | $ | 577,833 | $ | 683,895 | $ | 379,215 | $ | 254,926 | $ | 62,505 | $ | 0 | $ | 103,869 | $ | 0 | $ | 2,062,243 | ||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 465,243 | $ | 574,231 | $ | 189,501 | $ | 116,918 | $ | 39,627 | $ | 346 | $ | 928,587 | $ | 0 | $ | 2,314,453 | ||||||||||||||||||||||||||||||||||||||
Criticized | 9,589 | 55,118 | 74,916 | 956 | 416 | 0 | 138,424 | 0 | 279,419 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 0 | 0 | 3,845 | 0 | 0 | 0 | 2,440 | 0 | 6,285 | |||||||||||||||||||||||||||||||||||||||||||||||
Total other | $ | 474,832 | $ | 629,349 | $ | 268,262 | $ | 117,874 | $ | 40,043 | $ | 346 | $ | 1,069,451 | $ | 0 | $ | 2,600,157 | ||||||||||||||||||||||||||||||||||||||
Total cash flow dependent | $ | 1,052,665 | $ | 1,313,244 | $ | 647,477 | $ | 372,800 | $ | 102,548 | $ | 346 | $ | 1,173,320 | $ | 0 | $ | 4,662,400 | ||||||||||||||||||||||||||||||||||||||
Private bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 1,191,024 | $ | 1,212,000 | $ | 420,440 | $ | 397,847 | $ | 342,594 | $ | 463,198 | $ | 368,107 | $ | 321 | $ | 4,395,531 | ||||||||||||||||||||||||||||||||||||||
Criticized | 1,456 | 5,549 | 3,040 | 1,201 | 5,101 | 6,802 | 787 | 0 | 23,936 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 0 | 520 | 2,475 | 0 | 0 | 1,702 | 735 | 0 | 5,432 | |||||||||||||||||||||||||||||||||||||||||||||||
Total private bank | $ | 1,192,480 | $ | 1,218,069 | $ | 425,955 | $ | 399,048 | $ | 347,695 | $ | 471,702 | $ | 369,629 | $ | 321 | $ | 4,424,899 | ||||||||||||||||||||||||||||||||||||||
Balance sheet dependent: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||||||||
Private equity/venture capital: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 339,398 | $ | 188,421 | $ | 71,803 | $ | 39,857 | $ | 3,577 | $ | 16,055 | $ | 17,228,948 | $ | 4,781 | $ | 17,892,840 | ||||||||||||||||||
Criticized | 54 | — | — | — | — | — | 8,214 | — | 8,268 | |||||||||||||||||||||||||||
Nonperforming | — | 9 | — | — | — | — | — | — | 9 | |||||||||||||||||||||||||||
Total private equity/venture capital | $ | 339,452 | $ | 188,430 | $ | 71,803 | $ | 39,857 | $ | 3,577 | $ | 16,055 | $ | 17,237,162 | $ | 4,781 | $ | 17,901,117 | ||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||
Early stage: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 576,597 | $ | 614,464 | $ | 216,902 | $ | 53,103 | $ | 4,304 | $ | 355 | $ | 83,497 | $ | — | $ | 1,549,222 | ||||||||||||||||||
Criticized | 38,123 | 93,416 | 53,065 | 12,949 | 6,555 | 5,702 | 14,122 | — | 223,932 | |||||||||||||||||||||||||||
Nonperforming | 2,085 | 8,670 | 7,542 | 2,771 | 2,197 | — | 1,157 | — | 24,422 | |||||||||||||||||||||||||||
Total early stage | $ | 616,805 | $ | 716,550 | $ | 277,509 | $ | 68,823 | $ | 13,056 | $ | 6,057 | $ | 98,776 | $ | — | $ | 1,797,576 | ||||||||||||||||||
Mid stage: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 527,905 | $ | 342,149 | $ | 194,287 | $ | 59,075 | $ | 1,502 | $ | 4,448 | $ | 130,076 | $ | — | $ | 1,259,442 | ||||||||||||||||||
Criticized | 32,514 | 53,500 | 48,379 | 13,833 | 3,345 | 2,907 | 13,733 | — | 168,211 | |||||||||||||||||||||||||||
Nonperforming | — | 210 | 5,646 | 2,041 | — | — | 222 | — | 8,119 | |||||||||||||||||||||||||||
Total mid stage | $ | 560,419 | $ | 395,859 | $ | 248,312 | $ | 74,949 | $ | 4,847 | $ | 7,355 | $ | 144,031 | $ | — | $ | 1,435,772 | ||||||||||||||||||
Later stage: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 495,546 | $ | 564,400 | $ | 188,404 | $ | 73,703 | $ | 6,539 | $ | 7,860 | $ | 382,700 | $ | — | $ | 1,719,152 | ||||||||||||||||||
Criticized | 32,347 | 25,890 | 53,707 | 7,074 | — | 6,506 | 50,354 | — | 175,878 | |||||||||||||||||||||||||||
Nonperforming | — | 1,435 | 2,374 | 3,885 | — | — | 2,804 | — | 10,498 | |||||||||||||||||||||||||||
Total later stage | $ | 527,893 | $ | 591,725 | $ | 244,485 | $ | 84,662 | $ | 6,539 | $ | 14,366 | $ | 435,858 | $ | — | $ | 1,905,528 | ||||||||||||||||||
Total investor dependent | $ | 1,705,117 | $ | 1,704,134 | $ | 770,306 | $ | 228,434 | $ | 24,442 | $ | 27,778 | $ | 678,665 | $ | — | $ | 5,138,876 | ||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||
Sponsor led buyout: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 374,547 | $ | 637,287 | $ | 357,322 | $ | 262,844 | $ | 58,014 | $ | — | $ | 129,239 | $ | — | $ | 1,819,253 | ||||||||||||||||||
Criticized | 33,714 | 69,764 | 51,479 | 31,801 | 11,958 | — | 17,812 | — | 216,528 | |||||||||||||||||||||||||||
Nonperforming | 19 | 11,937 | — | 7,218 | — | — | 2,484 | — | 21,658 | |||||||||||||||||||||||||||
Total sponsor led buyout | $ | 408,280 | $ | 718,988 | $ | 408,801 | $ | 301,863 | $ | 69,972 | $ | — | $ | 149,535 | $ | — | $ | 2,057,439 | ||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 339,862 | $ | 639,167 | $ | 193,797 | $ | 114,650 | $ | 41,605 | $ | 347 | $ | 1,111,948 | $ | — | $ | 2,441,376 | ||||||||||||||||||
Criticized | 14,326 | 71,911 | 88,065 | 2,807 | 581 | — | 163,424 | — | 341,114 | |||||||||||||||||||||||||||
Nonperforming | — | — | 1,140 | — | — | — | 4,177 | — | 5,317 | |||||||||||||||||||||||||||
Total other | $ | 354,188 | $ | 711,078 | $ | 283,002 | $ | 117,457 | $ | 42,186 | $ | 347 | $ | 1,279,549 | $ | — | $ | 2,787,807 | ||||||||||||||||||
Total cash flow dependent | $ | 762,468 | $ | 1,430,066 | $ | 691,803 | $ | 419,320 | $ | 112,158 | $ | 347 | $ | 1,429,084 | $ | — | $ | 4,845,246 | ||||||||||||||||||
Private bank: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 596,908 | $ | 1,062,779 | $ | 443,164 | $ | 440,490 | $ | 363,380 | $ | 531,090 | $ | 277,942 | $ | 72,077 | $ | 3,787,830 | ||||||||||||||||||
Criticized | — | 5,859 | 2,926 | 1,805 | 2,500 | 8,238 | 602 | — | 21,930 | |||||||||||||||||||||||||||
Nonperforming | — | — | — | 1,570 | — | 2,901 | 2,046 | — | 6,517 | |||||||||||||||||||||||||||
Total private bank | $ | 596,908 | $ | 1,068,638 | $ | 446,090 | $ | 443,865 | $ | 365,880 | $ | 542,229 | $ | 280,590 | $ | 72,077 | $ | 3,816,277 |
Pass | $ | 374,768 | $ | 202,185 | $ | 237,529 | $ | 31,838 | $ | 0 | $ | 0 | $ | 717,771 | $ | 1,506 | $ | 1,565,597 | ||||||||||||||||||||||||||||||||||||||
Criticized | 60,238 | 8,877 | 5,559 | 610 | 0 | 0 | 56,663 | 0 | 131,947 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 0 | 0 | 0 | 0 | 0 | 675 | 1 | 0 | 676 | |||||||||||||||||||||||||||||||||||||||||||||||
Total balance sheet dependent | $ | 435,006 | $ | 211,062 | $ | 243,088 | $ | 32,448 | $ | 0 | $ | 675 | $ | 774,435 | $ | 1,506 | $ | 1,698,220 | ||||||||||||||||||||||||||||||||||||||
Premium wine: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 154,624 | $ | 181,416 | $ | 70,297 | $ | 84,221 | $ | 102,297 | $ | 156,397 | $ | 154,685 | $ | 37,574 | $ | 941,511 | ||||||||||||||||||||||||||||||||||||||
Criticized | 14,001 | 26,446 | 35,898 | 338 | 13,674 | 8,210 | 40,210 | 0 | 138,777 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 0 | 0 | 0 | 0 | 1,662 | 0 | 13 | 0 | 1,675 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Premium wine | $ | 168,625 | $ | 207,862 | $ | 106,195 | $ | 84,559 | $ | 117,633 | $ | 164,607 | $ | 194,908 | $ | 37,574 | $ | 1,081,963 | ||||||||||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 1,474 | $ | 23,286 | $ | 13,092 | $ | 1,900 | $ | 0 | $ | 80 | $ | 8,209 | $ | 0 | $ | 48,041 | ||||||||||||||||||||||||||||||||||||||
Criticized | 22 | 0 | 0 | 0 | 0 | 0 | 39 | 0 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 0 | 104 | 0 | 0 | 0 | 0 | 0 | 0 | 104 | |||||||||||||||||||||||||||||||||||||||||||||||
Total other | $ | 1,496 | $ | 23,390 | $ | 13,092 | $ | 1,900 | $ | 0 | $ | 80 | $ | 8,248 | $ | 0 | $ | 48,206 | ||||||||||||||||||||||||||||||||||||||
SBA loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 1,663,383 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,663,383 | ||||||||||||||||||||||||||||||||||||||
Criticized | 138,633 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 138,633 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total SBA loans | $ | 1,802,016 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,802,016 | ||||||||||||||||||||||||||||||||||||||
Total loans | $ | 7,146,926 | $ | 4,598,266 | $ | 2,159,063 | $ | 1,095,436 | $ | 585,426 | $ | 670,298 | $ | 22,098,467 | $ | 60,009 | $ | 38,413,891 |
Balance sheet dependent: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 216,879 | $ | 221,481 | $ | 247,818 | $ | 33,048 | $ | 4,545 | $ | — | $ | 864,436 | $ | — | $ | 1,588,207 | ||||||||||||||||||
Criticized | — | 8,627 | 2,494 | 1,464 | — | — | 80,437 | — | 93,022 | |||||||||||||||||||||||||||
Nonperforming | 14 | — | — | — | — | — | 11,828 | — | 11,842 | |||||||||||||||||||||||||||
Total balance sheet dependent | $ | 216,893 | $ | 230,108 | $ | 250,312 | $ | 34,512 | $ | 4,545 | $ | — | $ | 956,701 | $ | — | $ | 1,693,071 | ||||||||||||||||||
Premium wine: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 85,177 | $ | 237,520 | $ | 73,632 | $ | 92,594 | $ | 93,214 | $ | 177,246 | $ | 167,166 | $ | — | $ | 926,549 | ||||||||||||||||||
Criticized | 2,042 | 12,674 | 35,964 | 353 | 3,980 | 13,327 | 42,886 | — | 111,226 | |||||||||||||||||||||||||||
Nonperforming | — | — | — | — | 1,668 | — | 13 | — | 1,681 | |||||||||||||||||||||||||||
Total Premium wine | $ | 87,219 | $ | 250,194 | $ | 109,596 | $ | 92,947 | $ | 98,862 | $ | 190,573 | $ | 210,065 | $ | — | $ | 1,039,456 | ||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 21,785 | $ | 240,902 | $ | 40,279 | $ | 38,752 | $ | 58,554 | $ | 33,212 | $ | 23,256 | $ | 207 | $ | 456,947 | ||||||||||||||||||
Criticized | 100 | — | — | — | — | — | 126 | — | 226 | |||||||||||||||||||||||||||
Nonperforming | — | 61 | — | — | — | — | — | — | 61 | |||||||||||||||||||||||||||
Total other | $ | 21,885 | $ | 240,963 | $ | 40,279 | $ | 38,752 | $ | 58,554 | $ | 33,212 | $ | 23,382 | $ | 207 | $ | 457,234 | ||||||||||||||||||
SBA loans: | ||||||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 1,688,030 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,688,030 | ||||||||||||||||||
Criticized | 143,713 | — | — | — | — | — | — | — | 143,713 | |||||||||||||||||||||||||||
Nonperforming | 4,202 | — | — | — | — | — | — | — | 4,202 | |||||||||||||||||||||||||||
Total SBA loans | $ | 1,835,945 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,835,945 | ||||||||||||||||||
Total loans | $ | 5,565,887 | $ | 5,112,533 | $ | 2,380,189 | $ | 1,297,687 | $ | 668,018 | $ | 810,194 | $ | 20,815,649 | $ | 77,065 | $ | 36,727,222 |
Three months ended September 30, 2020 | Beginning Balance June 30, 2020 | Charge-offs | Recoveries | (Reduction) Provision for Credit Losses | Foreign Currency Translation Adjustments | Ending Balance September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | 53,723 | $ | 0 | $ | 0 | $ | (14,734) | $ | 0 | $ | 38,989 | ||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||
Early stage | 148,270 | (14,950) | 2,511 | (33,171) | (101) | 102,559 | ||||||||||||||||||||||||||||||||
Mid stage | 56,393 | (7,162) | 697 | 12,578 | (88) | 62,418 | ||||||||||||||||||||||||||||||||
Later stage | 87,604 | (6,205) | 600 | 15,792 | (80) | 97,711 | ||||||||||||||||||||||||||||||||
Total investor dependent | 292,267 | (28,317) | 3,808 | (4,801) | (269) | 262,688 | ||||||||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 54,853 | (130) | 0 | (3,062) | 0 | 51,661 | ||||||||||||||||||||||||||||||||
Other | 43,100 | 0 | 0 | (2,779) | 0 | 40,321 | ||||||||||||||||||||||||||||||||
Total cash flow dependent | 97,953 | (130) | 0 | (5,841) | 0 | 91,982 | ||||||||||||||||||||||||||||||||
Private bank | 91,345 | 0 | 15 | (14,881) | 0 | 76,479 | ||||||||||||||||||||||||||||||||
Balance sheet dependent | 24,728 | 0 | 0 | 4,341 | 0 | 29,069 | ||||||||||||||||||||||||||||||||
Premium wine | 12,319 | 0 | 0 | (1,914) | 0 | 10,405 | ||||||||||||||||||||||||||||||||
Other | 13,635 | (2) | 531 | (14,898) | 1,600 | 866 | ||||||||||||||||||||||||||||||||
SBA loans | 3,858 | 0 | 0 | (1,378) | 0 | 2,480 | ||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 589,828 | $ | (28,449) | $ | 4,354 | $ | (54,106) | $ | 1,331 | $ | 512,958 |
Three months ended June 30, 2020 | Beginning Balance March 31, 2020 | Charge-offs | Recoveries | Provision for (Reduction of) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | Three months ended September 30, 2019 | Beginning Balance June 30, 2019 | Charge-offs | Recoveries | Provision for (Reduction) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Beginning Balance March 31, 2020 | Charge-offs | Recoveries | Provision for (Reduction of) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance June 30, 2020 | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private equity/venture capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global fund banking | Global fund banking | $ | 101,253 | $ | 0 | $ | 1,200 | $ | 1,485 | $ | (22) | $ | 103,916 | |||||||||||||||||||||||||||||||||||||||||||||||||
Investor dependent: | Investor dependent: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Early stage | 127,189 | (1,764 | ) | 2,390 | 20,451 | 4 | 148,270 | Early stage | 30,969 | (7,524) | 1,760 | 5,783 | (85) | 30,903 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mid stage | 51,962 | (3,653 | ) | 1,269 | 6,861 | (46 | ) | 56,393 | Mid stage | 28,264 | (16,581) | 385 | 5,778 | (85) | 17,761 | |||||||||||||||||||||||||||||||||||||||||||||||
Later stage | 96,550 | — | — | (8,950 | ) | 4 | 87,604 | Later stage | 37,940 | (11,449) | 276 | 17,513 | (259) | 44,021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total investor dependent | 275,701 | (5,417 | ) | 3,659 | 18,362 | (38 | ) | 292,267 | Total investor dependent | 97,173 | (35,554) | 2,421 | 29,074 | (429) | 92,685 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash flow dependent: | Cash flow dependent: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 42,091 | — | — | 12,763 | (1 | ) | 54,853 | Sponsor led buyout | 32,131 | 0 | 0 | 9,663 | (143) | 41,651 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 39,416 | (3,385 | ) | 1 | 7,068 | — | 43,100 | Other | 24,551 | 0 | 250 | (3,199) | 47 | 21,649 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total cash flow dependent | 81,507 | (3,385 | ) | 1 | 19,831 | (1 | ) | 97,953 | Total cash flow dependent | 56,682 | 0 | 250 | 6,464 | (96) | 63,300 | |||||||||||||||||||||||||||||||||||||||||||||||
Private bank | 87,795 | (1,035 | ) | — | 4,585 | — | 91,345 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Bank | Private Bank | 20,397 | 0 | 15 | 1,307 | (19) | 21,700 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet dependent | 23,235 | (4,900 | ) | — | 6,393 | — | 24,728 | Balance sheet dependent | 17,256 | 0 | 0 | (2,496) | 37 | 14,797 | ||||||||||||||||||||||||||||||||||||||||||||||||
Premium wine | 12,377 | — | — | (58 | ) | — | 12,319 | Premium wine | 4,227 | 0 | 0 | 27 | 0 | 4,254 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 11,574 | (318 | ) | 413 | 1,979 | (13 | ) | 13,635 | Other | 4,900 | (1,266) | 2 | 124 | (2) | 3,758 | |||||||||||||||||||||||||||||||||||||||||||||||
SBA loans | — | — | — | 3,858 | — | 3,858 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 548,963 | $ | (15,055 | ) | $ | 4,073 | $ | 51,899 | $ | (52 | ) | $ | 589,828 | Total allowance for credit losses | $ | 301,888 | $ | (36,820) | $ | 3,888 | $ | 35,985 | $ | (531) | $ | 304,410 |
Nine months ended September 30, 2020 | Beginning Balance December 31, 2019 | Impact of adopting ASC 326 | Charge-offs | Recoveries | Provision for (Reduction) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance September 30, 2020 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | 107,285 | $ | (69,888) | $ | 0 | $ | 0 | $ | 1,772 | $ | (180) | $ | 38,989 | ||||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||||||||
Early stage | 26,245 | 39,911 | (26,897) | 6,474 | 57,494 | (668) | 102,559 | |||||||||||||||||||||||||||||||||||||
Mid stage | 15,936 | 6,963 | (20,147) | 5,303 | 54,584 | (221) | 62,418 | |||||||||||||||||||||||||||||||||||||
Later stage | 40,189 | 24,750 | (20,189) | 600 | 52,880 | (519) | 97,711 | |||||||||||||||||||||||||||||||||||||
Total investor dependent | 82,370 | 71,624 | (67,233) | 12,377 | 164,958 | (1,408) | 262,688 | |||||||||||||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 42,939 | 3,151 | (2,754) | 2,845 | 5,613 | (133) | 51,661 | |||||||||||||||||||||||||||||||||||||
Other | 25,159 | (3,056) | (3,385) | 1 | 21,727 | (125) | 40,321 | |||||||||||||||||||||||||||||||||||||
Total cash flow dependent | 68,098 | 95 | (6,139) | 2,846 | 27,340 | (258) | 91,982 | |||||||||||||||||||||||||||||||||||||
Private bank | 21,551 | 12,615 | (1,616) | 15 | 44,194 | (280) | 76,479 | |||||||||||||||||||||||||||||||||||||
Balance sheet dependent | 12,722 | (1,364) | (4,900) | 0 | 22,685 | (74) | 29,069 | |||||||||||||||||||||||||||||||||||||
Premium wine | 5,296 | 3,650 | (192) | 0 | 1,691 | (40) | 10,405 | |||||||||||||||||||||||||||||||||||||
Other | 7,602 | 8,732 | (320) | 944 | (18,426) | 2,334 | 866 | |||||||||||||||||||||||||||||||||||||
SBA loans | 0 | 0 | 0 | 0 | 2,480 | 0 | 2,480 | |||||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 304,924 | $ | 25,464 | $ | (80,400) | $ | 16,182 | $ | 246,694 | $ | 94 | $ | 512,958 |
Three months ended June 30, 2019 | Beginning Balance March 31, 2019 | Charge-offs | Recoveries | Provision for (Reduction of) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | Nine months ended September 30, 2019 | Beginning Balance December 31, 2018 | Charge-offs | Recoveries | Provision for (Reduction) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Beginning Balance March 31, 2019 | Charge-offs | Recoveries | Provision for (Reduction of) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance June 30, 2019 | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private equity/venture capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global fund banking | Global fund banking | $ | 93,781 | $ | (2,047) | $ | 1,200 | $ | 11,304 | $ | (322) | $ | 103,916 | |||||||||||||||||||||||||||||||||||||||||||||||||
Investor dependent: | Investor dependent: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Early stage | 26,730 | (7,627 | ) | 3,357 | 8,878 | (369 | ) | 30,969 | Early stage | 25,885 | (16,819) | 5,685 | 16,547 | (395) | 30,903 | |||||||||||||||||||||||||||||||||||||||||||||||
Mid stage | 38,163 | (13,395 | ) | 900 | 2,708 | (112 | ) | 28,264 | Mid stage | 20,999 | (36,492) | 1,288 | 31,443 | 523 | 17,761 | |||||||||||||||||||||||||||||||||||||||||||||||
Later stage | 30,163 | — | 1,133 | 6,932 | (288 | ) | 37,940 | Later stage | 25,217 | (11,449) | 2,053 | 28,616 | (416) | 44,021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total investor dependent | 95,056 | (21,022 | ) | 5,390 | 18,518 | (769 | ) | 97,173 | Total investor dependent | 72,101 | (64,760) | 9,026 | 76,606 | (288) | 92,685 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash flow dependent: | Cash flow dependent: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 40,933 | (2,402 | ) | — | (6,677 | ) | 277 | 32,131 | Sponsor led buyout | 44,274 | (2,402) | 0 | (253) | 32 | 41,651 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 20,514 | — | 4,397 | (376 | ) | 16 | 24,551 | Other | 21,754 | (716) | 4,647 | (4,083) | 47 | 21,649 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total cash flow dependent | 61,447 | (2,402 | ) | 4,397 | (7,053 | ) | 293 | 56,682 | Total cash flow dependent | 66,028 | (3,118) | 4,647 | (4,336) | 79 | 63,300 | |||||||||||||||||||||||||||||||||||||||||||||||
Private Bank | 19,964 | (960 | ) | 15 | 1,438 | (60 | ) | 20,397 | Private Bank | 20,583 | (1,019) | 240 | 1,999 | (103) | 21,700 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet dependent | 21,632 | — | — | (4,566 | ) | 190 | 17,256 | Balance sheet dependent | 21,707 | 0 | 0 | (7,135) | 225 | 14,797 | ||||||||||||||||||||||||||||||||||||||||||||||||
Premium wine | 3,949 | — | — | 290 | (12 | ) | 4,227 | Premium wine | 3,646 | 0 | 0 | 611 | (3) | 4,254 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 2,792 | (4 | ) | 18 | 2,185 | (91 | ) | 4,900 | Other | 3,057 | (1,311) | 20 | 1,905 | 87 | 3,758 | |||||||||||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 300,151 | $ | (26,435 | ) | $ | 9,820 | $ | 19,148 | $ | (796 | ) | $ | 301,888 | Total allowance for credit losses | $ | 280,903 | $ | (72,255) | $ | 15,133 | $ | 80,954 | $ | (325) | $ | 304,410 |
Six months ended June 30, 2020 | Beginning Balance December 31, 2019 | Impact of adopting ASC 326 | Charge-offs | Recoveries | Provision for (Reduction of) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance June 30, 2020 | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Private equity/venture capital | $ | 107,285 | $ | (69,888 | ) | $ | — | $ | — | $ | 16,506 | $ | (180 | ) | $ | 53,723 | ||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||
Early stage | 26,245 | 39,911 | (11,947 | ) | 3,963 | 90,665 | (567 | ) | 148,270 | |||||||||||||||||||
Mid stage | 15,936 | 6,963 | (12,985 | ) | 4,606 | 42,006 | (133 | ) | 56,393 | |||||||||||||||||||
Later stage | 40,189 | 24,750 | (13,984 | ) | — | 37,088 | (439 | ) | 87,604 | |||||||||||||||||||
Total investor dependent | 82,370 | 71,624 | (38,916 | ) | 8,569 | 169,759 | (1,139 | ) | 292,267 | |||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||
Sponsor led buyout | 42,939 | 3,151 | (2,624 | ) | 2,845 | 8,675 | (133 | ) | 54,853 | |||||||||||||||||||
Other | 25,159 | (3,056 | ) | (3,385 | ) | 1 | 24,506 | (125 | ) | 43,100 | ||||||||||||||||||
Total cash flow dependent | 68,098 | 95 | (6,009 | ) | 2,846 | 33,181 | (258 | ) | 97,953 | |||||||||||||||||||
Private bank | 21,551 | 12,615 | (1,616 | ) | — | 59,075 | (280 | ) | 91,345 | |||||||||||||||||||
Balance sheet dependent | 12,722 | (1,364 | ) | (4,900 | ) | — | 18,344 | (74 | ) | 24,728 | ||||||||||||||||||
Premium wine | 5,296 | 3,650 | (192 | ) | — | 3,605 | (40 | ) | 12,319 | |||||||||||||||||||
Other | 7,602 | 8,732 | (318 | ) | 413 | (3,528 | ) | 734 | 13,635 | |||||||||||||||||||
SBA loans | — | — | — | — | 3,858 | — | 3,858 | |||||||||||||||||||||
Total allowance for credit losses | $ | 304,924 | $ | 25,464 | $ | (51,951 | ) | $ | 11,828 | $ | 300,800 | $ | (1,237 | ) | $ | 589,828 |
Six months ended June 30, 2019 | Beginning Balance December 31, 2018 | Charge-offs | Recoveries | Provision for (Reduction of) Credit Losses | Foreign Currency Translation Adjustments | Ending Balance June 30, 2019 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Private equity/venture capital | $ | 93,781 | $ | (2,047 | ) | $ | — | $ | 9,819 | $ | (300 | ) | $ | 101,253 | ||||||||||
Investor dependent: | ||||||||||||||||||||||||
Early stage | 25,885 | (9,295 | ) | 3,925 | 10,764 | (310 | ) | 30,969 | ||||||||||||||||
Mid stage | 20,999 | (19,911 | ) | 903 | 25,665 | 608 | 28,264 | |||||||||||||||||
Later stage | 25,217 | — | 1,777 | 11,103 | (157 | ) | 37,940 | |||||||||||||||||
Total investor dependent | 72,101 | (29,206 | ) | 6,605 | 47,532 | 141 | 97,173 | |||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||
Sponsor led buyout | 44,274 | (2,402 | ) | — | (9,916 | ) | 175 | 32,131 | ||||||||||||||||
Other | 21,754 | (716 | ) | 4,397 | (884 | ) | — | 24,551 | ||||||||||||||||
Total cash flow dependent | 66,028 | (3,118 | ) | 4,397 | (10,800 | ) | 175 | 56,682 | ||||||||||||||||
Private Bank | 20,583 | (1,019 | ) | 225 | 692 | (84 | ) | 20,397 | ||||||||||||||||
Balance sheet dependent | 21,707 | — | — | (4,639 | ) | 188 | 17,256 | |||||||||||||||||
Premium wine | 3,646 | — | — | 584 | (3 | ) | 4,227 | |||||||||||||||||
Other | 3,057 | (45 | ) | 18 | 1,781 | 89 | 4,900 | |||||||||||||||||
Total allowance for credit losses | $ | 280,903 | $ | (35,435 | ) | $ | 11,245 | $ | 44,969 | $ | 206 | $ | 301,888 |
(Dollars in thousands) | 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 | |||||||||||||||||||||||||||||||||||||
September 30, 2020: | ||||||||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | 6,285 | $ | 0 | $ | 14 | $ | 6,299 | $ | 19,578,219 | $ | 19,584,518 | $ | 0 | ||||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||||||||
Early stage | 605 | 323 | 367 | 1,295 | 1,469,646 | 1,470,941 | 0 | |||||||||||||||||||||||||||||||||||||
Mid stage | 250 | 145 | 211 | 606 | 1,626,188 | 1,626,794 | 0 | |||||||||||||||||||||||||||||||||||||
Later stage | 51 | 0 | 0 | 51 | 2,013,883 | 2,013,934 | 0 | |||||||||||||||||||||||||||||||||||||
Total investor dependent | 906 | 468 | 578 | 1,952 | 5,109,717 | 5,111,669 | 0 | |||||||||||||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 0 | 0 | 0 | 0 | 2,062,243 | 2,062,243 | 0 | |||||||||||||||||||||||||||||||||||||
Other | 742 | 3 | 0 | 745 | 2,599,412 | 2,600,157 | 0 | |||||||||||||||||||||||||||||||||||||
Total cash flow dependent | 742 | 3 | 0 | 745 | 4,661,655 | 4,662,400 | 0 | |||||||||||||||||||||||||||||||||||||
Private bank | 4 | 4 | 0 | 8 | 4,424,891 | 4,424,899 | 0 | |||||||||||||||||||||||||||||||||||||
Balance sheet dependent | 2,851 | 7 | 0 | 2,858 | 1,695,362 | 1,698,220 | 0 | |||||||||||||||||||||||||||||||||||||
Premium wine | 3,117 | 4,355 | 0 | 7,472 | 1,074,491 | 1,081,963 | 0 | |||||||||||||||||||||||||||||||||||||
Other | 23 | 0 | 155 | 178 | 48,028 | 48,206 | 0 | |||||||||||||||||||||||||||||||||||||
SBA loans | 0 | 0 | 0 | 0 | 1,802,016 | 1,802,016 | 0 | |||||||||||||||||||||||||||||||||||||
Total loans (1) | $ | 13,928 | $ | 4,837 | $ | 747 | $ | 19,512 | $ | 38,394,379 | $ | 38,413,891 | $ | 0 | ||||||||||||||||||||||||||||||
December 31, 2019: | ||||||||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | 97,739 | $ | 383 | $ | 3,150 | $ | 101,272 | $ | 17,611,525 | $ | 17,712,797 | $ | 3,150 | ||||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||||||||
Early stage | 1,307 | 22,062 | 723 | 24,092 | 1,629,333 | 1,653,425 | 0 | |||||||||||||||||||||||||||||||||||||
Mid stage | 10,025 | 6,999 | 0 | 17,024 | 1,049,759 | 1,066,783 | 0 | |||||||||||||||||||||||||||||||||||||
Later stage | 8,113 | 500 | 10,569 | 19,182 | 1,679,494 | 1,698,676 | 0 | |||||||||||||||||||||||||||||||||||||
Total investor dependent | 19,445 | 29,561 | 11,292 | 60,298 | 4,358,586 | 4,418,884 | 0 | |||||||||||||||||||||||||||||||||||||
Cash flow dependent | ||||||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 0 | 0 | 0 | 0 | 2,203,020 | 2,203,020 | 0 | |||||||||||||||||||||||||||||||||||||
Other | 2,426 | 3,061 | 2 | 5,489 | 2,247,358 | 2,252,847 | 0 | |||||||||||||||||||||||||||||||||||||
Total cash flow dependent | 2,426 | 3,061 | 2 | 5,489 | 4,450,378 | 4,455,867 | 0 | |||||||||||||||||||||||||||||||||||||
Private bank | 6,582 | 2,049 | 1,544 | 10,175 | 3,479,044 | 3,489,219 | 365 | |||||||||||||||||||||||||||||||||||||
Balance sheet dependent | 2,731 | 0 | 0 | 2,731 | 1,294,573 | 1,297,304 | 0 | |||||||||||||||||||||||||||||||||||||
Premium wine | 8,435 | 3,170 | 0 | 11,605 | 1,051,907 | 1,063,512 | 0 | |||||||||||||||||||||||||||||||||||||
Other | 17 | 0 | 0 | 17 | 890,104 | 890,121 | 0 | |||||||||||||||||||||||||||||||||||||
Total loans (1) | $ | 137,375 | $ | 38,224 | $ | 15,988 | $ | 191,587 | $ | 33,136,117 | $ | 33,327,704 | $ | 3,515 |
(Dollars in thousands) | 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, 2020: | ||||||||||||||||||||||||||||
Private equity/venture capital | $ | 54 | $ | 10 | $ | 9 | $ | 73 | $ | 17,901,044 | $ | 17,901,117 | $ | — | ||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||
Early stage | 742 | 316 | 2,809 | 3,867 | 1,793,709 | 1,797,576 | 73 | |||||||||||||||||||||
Mid stage | 4,190 | 3,157 | 5,493 | 12,840 | 1,422,932 | 1,435,772 | — | |||||||||||||||||||||
Later stage | 2,502 | 3,900 | — | 6,402 | 1,899,126 | 1,905,528 | — | |||||||||||||||||||||
Total investor dependent | 7,434 | 7,373 | 8,302 | 23,109 | 5,115,767 | 5,138,876 | 73 | |||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||
Sponsor led buyout | 46 | 14 | — | 60 | 2,057,379 | 2,057,439 | — | |||||||||||||||||||||
Other | 2,316 | 183 | 3,988 | 6,487 | 2,781,320 | 2,787,807 | — | |||||||||||||||||||||
Total cash flow dependent | 2,362 | 197 | 3,988 | 6,547 | 4,838,699 | 4,845,246 | — | |||||||||||||||||||||
Private bank | 601 | — | 2,749 | 3,350 | 3,812,927 | 3,816,277 | — | |||||||||||||||||||||
Balance sheet dependent | 4,777 | 255 | — | 5,032 | 1,688,039 | 1,693,071 | — | |||||||||||||||||||||
Premium wine | 1 | — | — | 1 | 1,039,455 | 1,039,456 | — | |||||||||||||||||||||
Other | 1 | 39 | 82 | 122 | 457,112 | 457,234 | 3 | |||||||||||||||||||||
SBA loans | — | — | — | — | 1,835,945 | 1,835,945 | — | |||||||||||||||||||||
Total loans (1) | $ | 15,230 | $ | 7,874 | $ | 15,130 | $ | 38,234 | $ | 36,688,988 | $ | 36,727,222 | $ | 76 | ||||||||||||||
December 31, 2019: | ||||||||||||||||||||||||||||
Private equity/venture capital | $ | 97,739 | $ | 383 | $ | 3,150 | $ | 101,272 | $ | 17,611,525 | 17,712,797 | $ | 3,150 | |||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||
Early stage | 1,307 | 22,062 | 723 | 24,092 | 1,629,333 | 1,653,425 | — | |||||||||||||||||||||
Mid stage | 10,025 | 6,999 | — | 17,024 | 1,049,759 | 1,066,783 | — | |||||||||||||||||||||
Later stage | 8,113 | 500 | 10,569 | 19,182 | 1,679,494 | 1,698,676 | — | |||||||||||||||||||||
Total investor dependent | 19,445 | 29,561 | 11,292 | 60,298 | 4,358,586 | 4,418,884 | — | |||||||||||||||||||||
Cash flow dependent | ||||||||||||||||||||||||||||
Sponsor led buyout | — | — | — | — | 2,203,020 | 2,203,020 | — | |||||||||||||||||||||
Other | 2,426 | 3,061 | 2 | 5,489 | 2,247,358 | 2,252,847 | — | |||||||||||||||||||||
Total cash flow dependent | 2,426 | 3,061 | 2 | 5,489 | 4,450,378 | 4,455,867 | — | |||||||||||||||||||||
Private bank | 6,582 | 2,049 | 1,544 | 10,175 | 3,479,044 | 3,489,219 | 365 | |||||||||||||||||||||
Balance sheet dependent | 2,731 | — | — | 2,731 | 1,294,573 | 1,297,304 | — | |||||||||||||||||||||
Premium wine | 8,435 | 3,170 | — | 11,605 | 1,051,907 | 1,063,512 | — | |||||||||||||||||||||
Other | 17 | — | — | 17 | 890,104 | 890,121 | — | |||||||||||||||||||||
Total loans (1) | $ | 137,375 | $ | 38,224 | $ | 15,988 | $ | 191,587 | $ | 33,136,117 | $ | 33,327,704 | $ | 3,515 |
Three months ended September 30, 2020 | Beginning Balance June 30, 2020 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance September 30, 2020 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | 9 | $ | 6 | $ | (2) | $ | 0 | $ | 13 | ||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||
Early stage | 24,422 | 6,269 | (2,790) | (8,169) | 19,732 | |||||||||||||||||||||||||||||||||
Mid stage | 8,119 | 10,290 | (292) | (6,490) | 11,627 | |||||||||||||||||||||||||||||||||
Later stage | 10,498 | 36,779 | (3,500) | (5,202) | 38,575 | |||||||||||||||||||||||||||||||||
Total investor dependent | 43,039 | 53,338 | (6,582) | (19,861) | 69,934 | |||||||||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 21,658 | 172 | (238) | 0 | 21,592 | |||||||||||||||||||||||||||||||||
Other | 5,317 | 12,356 | (11,388) | 0 | 6,285 | |||||||||||||||||||||||||||||||||
Total cash flow dependent | 26,975 | 12,528 | (11,626) | 0 | 27,877 | |||||||||||||||||||||||||||||||||
Private bank | 6,517 | 3,348 | (4,433) | 0 | 5,432 | |||||||||||||||||||||||||||||||||
Balance sheet dependent | 11,842 | 675 | (11,841) | 0 | 676 | |||||||||||||||||||||||||||||||||
Premium wine | 1,681 | 0 | (6) | 0 | 1,675 | |||||||||||||||||||||||||||||||||
Other | 61 | 105 | (62) | 0 | 104 | |||||||||||||||||||||||||||||||||
SBA loans | 4,202 | 0 | (4,202) | 0 | 0 | |||||||||||||||||||||||||||||||||
Total nonaccrual loans | $ | 94,326 | $ | 70,000 | $ | (38,754) | $ | (19,861) | $ | 105,711 |
Three months ended September 30, 2019 | Beginning Balance June 30, 2019 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance September 30, 2019 | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Global fund banking | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||
Early stage | 10,290 | 12,409 | (2,172) | (1,569) | 18,958 | |||||||||||||||||||||||||||
Mid stage | 28,699 | 6 | (8,151) | (15,323) | 5,231 | |||||||||||||||||||||||||||
Later stage | 38,346 | 2,216 | (6,462) | (6,837) | 27,263 | |||||||||||||||||||||||||||
Total investor dependent | 77,335 | 14,631 | (16,785) | (23,729) | 51,452 | |||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||
Sponsor led buyout | 8,365 | 37,294 | (640) | 0 | 45,019 | |||||||||||||||||||||||||||
Other | 79 | 13 | 0 | 0 | 92 | |||||||||||||||||||||||||||
Total cash flow dependent | 8,444 | 37,307 | (640) | 0 | 45,111 | |||||||||||||||||||||||||||
Private bank | 5,644 | 1,531 | (86) | 0 | 7,089 | |||||||||||||||||||||||||||
Balance sheet dependent | 4,974 | 0 | (4,974) | 0 | 0 | |||||||||||||||||||||||||||
Premium wine | 244 | 174 | (25) | 0 | 393 | |||||||||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total nonaccrual loans (1) | $ | 96,641 | $ | 53,643 | $ | (22,510) | $ | (23,729) | $ | 104,045 |
Three months ended June 30, 2020 | Beginning Balance March 31, 2020 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | Nine months ended September 30, 2020 | Beginning Balance December 31, 2019 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Beginning Balance March 31, 2020 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance June 30, 2020 | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Private equity/venture capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Global fund banking | Global fund banking | $ | 0 | $ | 15 | $ | (2) | $ | 0 | $ | 13 | |||||||||||||||||||||||||||||||||||||||||
Investor dependent: | Investor dependent: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Early stage | 18,414 | 9,606 | (3,141 | ) | (457 | ) | 24,422 | Early stage | 11,093 | 28,218 | (8,695) | (10,884) | 19,732 | |||||||||||||||||||||||||||||||||||||||
Mid stage | 12,180 | 494 | (399 | ) | (4,156 | ) | 8,119 | Mid stage | 17,330 | 22,875 | (1,079) | (27,499) | 11,627 | |||||||||||||||||||||||||||||||||||||||
Later stage | 14,443 | 959 | (4,904 | ) | — | 10,498 | Later stage | 6,296 | 48,962 | (8,276) | (8,407) | 38,575 | ||||||||||||||||||||||||||||||||||||||||
Total investor dependent | 45,037 | 11,059 | (8,444 | ) | (4,613 | ) | 43,039 | Total investor dependent | 34,719 | 100,055 | (18,050) | (46,790) | 69,934 | |||||||||||||||||||||||||||||||||||||||
Cash flow dependent: | Cash flow dependent: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | — | 21,658 | — | — | 21,658 | Sponsor led buyout | 44,585 | 21,830 | (42,199) | (2,624) | 21,592 | |||||||||||||||||||||||||||||||||||||||||
Other | 13 | 8,580 | (3,276 | ) | — | 5,317 | Other | 17,681 | 20,936 | (32,314) | (18) | 6,285 | ||||||||||||||||||||||||||||||||||||||||
Total cash flow dependent | 13 | 30,238 | (3,276 | ) | — | 26,975 | Total cash flow dependent | 62,266 | 42,766 | (74,513) | (2,642) | 27,877 | ||||||||||||||||||||||||||||||||||||||||
Private bank | 4,857 | 2,634 | (974 | ) | — | 6,517 | Private bank | 5,480 | 5,982 | (5,449) | (581) | 5,432 | ||||||||||||||||||||||||||||||||||||||||
Balance sheet dependent | — | 16,742 | (4,900 | ) | — | 11,842 | Balance sheet dependent | 0 | 17,417 | (16,741) | 0 | 676 | ||||||||||||||||||||||||||||||||||||||||
Premium wine | 700 | 998 | (17 | ) | — | 1,681 | Premium wine | 204 | 1,686 | (23) | (192) | 1,675 | ||||||||||||||||||||||||||||||||||||||||
Other | — | 234 | (173 | ) | — | 61 | Other | 0 | 339 | (235) | 0 | 104 | ||||||||||||||||||||||||||||||||||||||||
SBA loans | — | 4,202 | — | — | 4,202 | SBA loans | 0 | 4,202 | (4,202) | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans | $ | 50,607 | $ | 66,116 | $ | (17,784 | ) | $ | (4,613 | ) | $ | 94,326 | ||||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans (1) | Total nonaccrual loans (1) | $ | 102,669 | $ | 172,462 | $ | (119,215) | $ | (50,205) | $ | 105,711 |
Nine months ended September 30, 2019 | Beginning Balance December 31, 2018 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance September 30, 2019 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Global fund banking | $ | 3,700 | $ | 2,247 | $ | (3,900) | $ | (2,047) | $ | 0 | ||||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||
Early stage | 7,616 | 25,221 | (10,615) | (3,264) | 18,958 | |||||||||||||||||||||||||||||||||
Mid stage | 4,751 | 42,497 | (9,541) | (32,476) | 5,231 | |||||||||||||||||||||||||||||||||
Later stage | 11,385 | 32,786 | (10,071) | (6,837) | 27,263 | |||||||||||||||||||||||||||||||||
Total investor dependent | 23,752 | 100,504 | (30,227) | (42,577) | 51,452 | |||||||||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 39,534 | 37,294 | (29,407) | (2,402) | 45,019 | |||||||||||||||||||||||||||||||||
Other | 17,156 | 92 | (16,690) | (466) | 92 | |||||||||||||||||||||||||||||||||
Total cash flow dependent | 56,690 | 37,386 | (46,097) | (2,868) | 45,111 | |||||||||||||||||||||||||||||||||
Private bank | 3,919 | 3,411 | (174) | (67) | 7,089 | |||||||||||||||||||||||||||||||||
Balance sheet dependent | 5,004 | 238 | (5,242) | 0 | 0 | |||||||||||||||||||||||||||||||||
Premium wine | 285 | 174 | (66) | 0 | 393 | |||||||||||||||||||||||||||||||||
Other | 792 | 0 | (792) | 0 | 0 | |||||||||||||||||||||||||||||||||
Total nonaccrual loans (1) | $ | 94,142 | $ | 143,960 | $ | (86,498) | $ | (47,559) | $ | 104,045 |
Three months ended June 30, 2019 | Beginning Balance March 31, 2019 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance June 30, 2019 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Private equity/venture capital | $ | 5,947 | $ | — | $ | (3,900 | ) | $ | (2,047 | ) | $ | — | ||||||||
Investor dependent: | ||||||||||||||||||||
Early stage | 8,697 | 8,379 | (5,231 | ) | (1,555 | ) | 10,290 | |||||||||||||
Mid stage | 32,099 | 10,392 | (869 | ) | (12,923 | ) | 28,699 | |||||||||||||
Later stage | 23,140 | 18,507 | (3,301 | ) | — | 38,346 | ||||||||||||||
Total investor dependent | 63,936 | 37,278 | (9,401 | ) | (14,478 | ) | 77,335 | |||||||||||||
Cash flow dependent: | ||||||||||||||||||||
Sponsor led buyout | 38,237 | — | (27,470 | ) | (2,402 | ) | 8,365 | |||||||||||||
Other | 16,690 | 79 | (16,690 | ) | — | 79 | ||||||||||||||
Total cash flow dependent | 54,927 | 79 | (44,160 | ) | (2,402 | ) | 8,444 | |||||||||||||
Private bank | 3,809 | 1,865 | (22 | ) | (8 | ) | 5,644 | |||||||||||||
Balance sheet dependent | 4,736 | 238 | — | — | 4,974 | |||||||||||||||
Premium wine | 268 | — | (24 | ) | — | 244 | ||||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Total nonaccrual loans (1) | $ | 133,623 | $ | 39,460 | $ | (57,507 | ) | $ | (18,935 | ) | $ | 96,641 |
Six months ended June 30, 2020 | Beginning Balance December 31, 2019 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance June 30, 2020 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Private equity/venture capital | $ | — | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||||
Investor dependent: | ||||||||||||||||||||
Early stage | 11,093 | 21,949 | (5,905 | ) | (2,715 | ) | 24,422 | |||||||||||||
Mid stage | 17,330 | 12,585 | (787 | ) | (21,009 | ) | 8,119 | |||||||||||||
Later stage | 6,296 | 12,183 | (4,776 | ) | (3,205 | ) | 10,498 | |||||||||||||
Total investor dependent | 34,719 | 46,717 | (11,468 | ) | (26,929 | ) | 43,039 | |||||||||||||
Cash flow dependent: | ||||||||||||||||||||
Sponsor led buyout | 44,585 | 21,658 | (41,961 | ) | (2,624 | ) | 21,658 | |||||||||||||
Other | 17,681 | 8,580 | (20,926 | ) | (18 | ) | 5,317 | |||||||||||||
Total cash flow dependent | 62,266 | 30,238 | (62,887 | ) | (2,642 | ) | 26,975 | |||||||||||||
Private bank | 5,480 | 2,634 | (1,016 | ) | (581 | ) | 6,517 | |||||||||||||
Balance sheet dependent | — | 16,742 | (4,900 | ) | — | 11,842 | ||||||||||||||
Premium wine | 204 | 1,686 | (17 | ) | (192 | ) | 1,681 | |||||||||||||
Other | — | 234 | (173 | ) | — | 61 | ||||||||||||||
SBA loans | — | 4,202 | — | — | 4,202 | |||||||||||||||
Total nonaccrual loans (1) | $ | 102,669 | $ | 102,462 | $ | (80,461 | ) | $ | (30,344 | ) | $ | 94,326 |
Six months ended June 30, 2019 | Beginning Balance December 31, 2018 | Additions | Paydowns and Other Reductions | Charge-offs | Ending Balance June 30, 2019 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Private equity/venture capital | $ | 3,700 | $ | 2,247 | $ | (3,900 | ) | $ | (2,047 | ) | $ | — | ||||||||
Investor dependent: | ||||||||||||||||||||
Early stage | 7,616 | 12,812 | (8,443 | ) | (1,695 | ) | 10,290 | |||||||||||||
Mid stage | 4,751 | 42,491 | (1,390 | ) | (17,153 | ) | 28,699 | |||||||||||||
Later stage | 11,385 | 30,570 | (3,609 | ) | — | 38,346 | ||||||||||||||
Total investor dependent | 23,752 | 85,873 | (13,442 | ) | (18,848 | ) | 77,335 | |||||||||||||
Cash flow dependent: | ||||||||||||||||||||
Sponsor led buyout | 39,534 | — | (28,767 | ) | (2,402 | ) | 8,365 | |||||||||||||
Other | 17,156 | 79 | (16,690 | ) | (466 | ) | 79 | |||||||||||||
Total cash flow dependent | 56,690 | 79 | (45,457 | ) | (2,868 | ) | 8,444 | |||||||||||||
Private bank | 3,919 | 1,880 | (88 | ) | (67 | ) | 5,644 | |||||||||||||
Balance sheet dependent | 5,004 | 238 | (268 | ) | — | 4,974 | ||||||||||||||
Premium wine | 285 | — | (41 | ) | — | 244 | ||||||||||||||
Other | 792 | — | (792 | ) | — | — | ||||||||||||||
Total nonaccrual loans (1) | $ | 94,142 | $ | 90,317 | $ | (63,988 | ) | $ | (23,830 | ) | $ | 96,641 |
June 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Nonaccrual Loans | Nonaccrual Loans with no Allowance for Credit Loss | Nonaccrual Loans | Nonaccrual Loans with no Allowance for Credit Loss | (Dollars in thousands) | Nonaccrual Loans | Nonaccrual Loans with no Allowance for Credit Loss | Nonaccrual Loans | Nonaccrual Loans with no Allowance for Credit Loss | |||||||||||||||||||||||||||||||||
Private equity/venture capital | $ | 9 | $ | 9 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Global fund banking | Global fund banking | $ | 13 | $ | 8 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||
Investor dependent: | Investor dependent: | |||||||||||||||||||||||||||||||||||||||||
Early stage | 24,422 | — | 11,093 | 460 | Early stage | 19,732 | 10 | 11,093 | 460 | |||||||||||||||||||||||||||||||||
Mid stage | 8,119 | 368 | 17,330 | 274 | Mid stage | 11,627 | 0 | 17,330 | 274 | |||||||||||||||||||||||||||||||||
Later stage | 10,498 | 4 | 6,296 | — | Later stage | 38,575 | 0 | 6,296 | 0 | |||||||||||||||||||||||||||||||||
Total investor dependent | 43,039 | 372 | 34,719 | 734 | Total investor dependent | 69,934 | 10 | 34,719 | 734 | |||||||||||||||||||||||||||||||||
Cash flow dependent: | Cash flow dependent: | |||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 21,658 | — | 44,585 | — | Sponsor led buyout | 21,592 | 0 | 44,585 | 0 | |||||||||||||||||||||||||||||||||
Other | 5,317 | — | 17,681 | 2,782 | Other | 6,285 | 705 | 17,681 | 2,782 | |||||||||||||||||||||||||||||||||
Total cash flow dependent | 26,975 | — | 62,266 | 2,782 | Total cash flow dependent | 27,877 | 705 | 62,266 | 2,782 | |||||||||||||||||||||||||||||||||
Private bank | 6,517 | 6,517 | 5,480 | 3,714 | Private bank | 5,432 | 4,912 | 5,480 | 3,714 | |||||||||||||||||||||||||||||||||
Balance sheet dependent | 11,842 | — | — | — | Balance sheet dependent | 676 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Premium wine | 1,681 | 997 | 204 | — | Premium wine | 1,675 | 998 | 204 | 0 | |||||||||||||||||||||||||||||||||
Other | 61 | 61 | — | — | Other | 104 | 104 | 0 | 0 | |||||||||||||||||||||||||||||||||
SBA loans | 4,202 | — | — | — | SBA loans | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Total nonaccrual loans (1) | $ | 94,326 | $ | 7,956 | $ | 102,669 | $ | 7,230 | Total nonaccrual loans (1) | $ | 105,711 | $ | 6,737 | $ | 102,669 | $ | 7,230 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | (Dollars in thousands) | September 30, 2020 | December 31, 2019 | |||||||||||||||||
Loans modified in TDRs: | Loans modified in TDRs: | |||||||||||||||||||||
Private equity/venture capital | $ | — | $ | — | ||||||||||||||||||
Investor dependent | ||||||||||||||||||||||
Global fund banking | Global fund banking | $ | 0 | $ | 0 | |||||||||||||||||
Investor dependent: | Investor dependent: | |||||||||||||||||||||
Early stage | 5,354 | 9,471 | Early stage | 7,771 | 9,471 | |||||||||||||||||
Mid stage | 11,130 | 5,189 | Mid stage | 3,781 | 5,189 | |||||||||||||||||
Later stage | 10,595 | 23,318 | Later stage | 3,297 | 23,318 | |||||||||||||||||
Total investor dependent | 27,079 | 37,978 | Total investor dependent | 14,849 | 37,978 | |||||||||||||||||
Cash flow dependent | ||||||||||||||||||||||
Cash flow dependent: | Cash flow dependent: | |||||||||||||||||||||
Sponsor led buyout | 10,350 | 55,443 | Sponsor led buyout | 30,799 | 55,443 | |||||||||||||||||
Other | 5,326 | — | Other | 855 | 0 | |||||||||||||||||
Total cash flow dependent | 15,676 | 55,443 | Total cash flow dependent | 31,654 | 55,443 | |||||||||||||||||
Private bank | 1,318 | 2,104 | Private bank | 0 | 2,104 | |||||||||||||||||
Balance sheet dependent | — | — | Balance sheet dependent | 675 | 0 | |||||||||||||||||
Premium wine | 12,208 | 13,457 | Premium wine | 3,341 | 13,457 | |||||||||||||||||
Other | — | — | Other | 0 | 0 | |||||||||||||||||
SBA loans | — | — | SBA loans | 0 | 0 | |||||||||||||||||
Total loans modified in TDRs (1) | $ | 56,281 | $ | 108,982 | Total loans modified in TDRs (1) | $ | 50,519 | $ | 108,982 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Loans modified in TDRs during the period: | ||||||||||||||||||||||||||
Global fund banking | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||
Early stage | 4,043 | 2,205 | 4,193 | 2,205 | ||||||||||||||||||||||
Mid stage | 0 | 0 | 209 | 3,480 | ||||||||||||||||||||||
Later stage | 0 | 6,361 | 3,297 | 17,324 | ||||||||||||||||||||||
Total investor dependent | 4,043 | 8,566 | 7,699 | 23,009 | ||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||
Sponsor led buyout | 21,611 | 0 | 21,611 | 48,604 | ||||||||||||||||||||||
Other | 0 | 0 | 855 | 0 | ||||||||||||||||||||||
Total cash flow dependent | 21,611 | 0 | 22,466 | 48,604 | ||||||||||||||||||||||
Private bank | 0 | 0 | 0 | 1,826 | ||||||||||||||||||||||
Balance sheet dependent | 675 | 0 | 675 | 0 | ||||||||||||||||||||||
Premium wine | 0 | 0 | 998 | 0 | ||||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
SBA loans | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total loans modified in TDRs during the period (1) (2) | $ | 26,329 | $ | 8,566 | $ | 31,838 | $ | 73,439 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Loans modified in TDRs during the period: | ||||||||||||||||
Private equity/venture capital | $ | — | $ | — | $ | — | $ | — | ||||||||
Investor dependent | ||||||||||||||||
Early stage | 93 | — | 93 | 616 | ||||||||||||
Mid stage | 5,281 | 3,521 | 11,130 | 3,521 | ||||||||||||
Later stage | 3,966 | 14,214 | 6,710 | 14,214 | ||||||||||||
Total investor dependent | 9,340 | 17,735 | 17,933 | 18,351 | ||||||||||||
Cash flow dependent | ||||||||||||||||
Sponsor led buyout | — | 48,557 | — | 48,557 | ||||||||||||
Other | 3,986 | — | 3,986 | — | ||||||||||||
Total cash flow dependent | 3,986 | 48,557 | 3,986 | 48,557 | ||||||||||||
Private bank | — | 1,865 | — | 1,865 | ||||||||||||
Balance sheet dependent | — | — | — | — | ||||||||||||
Premium wine | 997 | — | 998 | — | ||||||||||||
Other | — | — | — | — | ||||||||||||
SBA loans | — | — | — | — | ||||||||||||
Total loans modified in TDRs during the period (1) (2) | $ | 14,323 | $ | 68,157 | $ | 22,917 | $ | 68,773 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
TDRs modified within the previous 12 months that defaulted during the period: | TDRs modified within the previous 12 months that defaulted during the period: | |||||||||||||||||||||||||||||||||||||||||
Private equity/venture capital | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Investor dependent | ||||||||||||||||||||||||||||||||||||||||||
Global fund banking | Global fund banking | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||
Investor dependent: | Investor dependent: | |||||||||||||||||||||||||||||||||||||||||
Early stage | — | — | — | — | Early stage | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Mid stage | — | — | — | — | Mid stage | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Later stage | — | — | — | — | Later stage | 0 | 10,963 | 0 | 10,963 | |||||||||||||||||||||||||||||||||
Total investor dependent | — | — | — | — | Total investor dependent | 0 | 10,963 | 0 | 10,963 | |||||||||||||||||||||||||||||||||
Cash flow dependent | ||||||||||||||||||||||||||||||||||||||||||
Cash flow dependent: | Cash flow dependent: | |||||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 10,350 | — | 10,350 | — | Sponsor led buyout | 0 | 37,294 | 0 | 37,294 | |||||||||||||||||||||||||||||||||
Other | — | — | — | — | Other | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Total cash flow dependent | 10,350 | — | 10,350 | — | Total cash flow dependent | 0 | 37,294 | 0 | 37,294 | |||||||||||||||||||||||||||||||||
Private bank | — | — | — | — | Private bank | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Balance sheet dependent | — | — | — | — | Balance sheet dependent | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Premium wine | — | — | — | — | Premium wine | 998 | 0 | 998 | 0 | |||||||||||||||||||||||||||||||||
Other | — | — | — | — | Other | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
SBA loans | — | — | — | — | SBA loans | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Total TDRs modified within the previous 12 months that defaulted in the period (1) | $ | 10,350 | $ | — | $ | 10,350 | $ | — | Total TDRs modified within the previous 12 months that defaulted in the period (1) | $ | 998 | $ | 48,257 | $ | 998 | $ | 48,257 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Allowance for credit losses: unfunded credit commitments, beginning balance | $ | 84,690 | $ | 57,970 | $ | 67,656 | $ | 55,183 | ||||||||
Impact of adopting ASC 326 | — | — | 22,826 | — | ||||||||||||
Provision for credit losses | 14,590 | 4,798 | 9,113 | 7,528 | ||||||||||||
Foreign currency translation adjustments | 14 | (104 | ) | (301 | ) | (47 | ) | |||||||||
Allowance for credit losses: unfunded credit commitments, ending balance (1) | $ | 99,294 | $ | 62,664 | $ | 99,294 | $ | 62,664 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Allowance for credit losses: unfunded credit commitments, beginning balance | $ | 99,294 | $ | 62,664 | $ | 67,656 | $ | 55,183 | ||||||||||||||||||
Impact of adopting ASC 326 | 0 | 0 | 22,826 | 0 | ||||||||||||||||||||||
Provision for credit losses | 2,019 | 551 | 11,132 | 8,079 | ||||||||||||||||||||||
Foreign currency translation adjustments | 202 | (107) | (99) | (154) | ||||||||||||||||||||||
Allowance for credit losses: unfunded credit commitments, ending balance (1) | $ | 101,515 | $ | 63,108 | $ | 101,515 | $ | 63,108 |
(1)The “allowance for credit losses: unfunded credit commitments” is included as a component of “other liabilities” on our unaudited interim consolidated balance sheets. See Note 15 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional disclosures related to our commitments to extend credit. 8. Leases |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets: | ||||||||||||||
Right-of-use assets - operating leases | $ | 220,493 | $ | 197,365 | ||||||||||
Liabilities: | ||||||||||||||
Lease liabilities - operating leases | 246,652 | 218,847 | ||||||||||||
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Assets: | ||||||||
Right-of-use assets - operating leases | $ | 215,319 | $ | 197,365 | ||||
Liabilities: | ||||||||
Lease liabilities - operating leases | 239,357 | 218,847 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Operating lease cost | $ | 11,605 | $ | 9,462 | $ | 22,969 | $ | 18,980 | Operating lease cost | $ | 11,998 | $ | 10,120 | $ | 35,040 | $ | 29,099 | |||||||||||||||||||||||||
Short-term lease cost | 420 | 582 | 759 | 845 | Short-term lease cost | 333 | 370 | 1,092 | 1,214 | |||||||||||||||||||||||||||||||||
Variable lease cost | 1,198 | 933 | 1,791 | 1,779 | Variable lease cost | 830 | 903 | 2,548 | 2,683 | |||||||||||||||||||||||||||||||||
Less: sublease income | (155 | ) | (1,115 | ) | (1,287 | ) | (2,223 | ) | Less: sublease income | (346) | (1,140) | (1,633) | (3,363) | |||||||||||||||||||||||||||||
Total lease cost, net | $ | 13,068 | $ | 9,862 | $ | 24,232 | $ | 19,381 | Total lease cost, net | $ | 12,815 | $ | 10,253 | $ | 37,047 | $ | 29,633 | |||||||||||||||||||||||||
Supplemental cash flows information: | Supplemental cash flows information: | |||||||||||||||||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||||||||||||||||||||
Cash paid for operating leases | $ | 12,130 | 10,884 | $ | 24,351 | $ | 21,238 | Cash paid for operating leases | $ | 12,273 | $ | 11,514 | $ | 36,753 | $ | 32,752 | ||||||||||||||||||||||||||
Noncash items during the period: | Noncash items during the period: | |||||||||||||||||||||||||||||||||||||||||
Lease obligations in exchange for obtaining Right-of-use assets | ||||||||||||||||||||||||||||||||||||||||||
Lease obligations in exchange for obtaining Right-of-use assets: | Lease obligations in exchange for obtaining Right-of-use assets: | |||||||||||||||||||||||||||||||||||||||||
Operating leases | $ | 18,850 | — | $ | 40,463 | $ | — | Operating leases | $ | 14,741 | $ | 7,770 | $ | 55,316 | $ | 7,770 |
June 30, 2020 | December 31, 2019 | |||||
Weighted-average remaining term (in years) - operating leases | 6.00 | 6.29 | ||||
Weighted-average discount rate - operating leases (1) | 2.64 | % | 2.92 | % |
September 30, 2020 | December 31, 2019 | |||||||||||||
Weighted-average remaining term (in years) - operating leases | 6.13 | 6.29 | ||||||||||||
Weighted-average discount rate - operating leases (1) | 2.54 % | 2.92 | % | |||||||||||
Years ended December 31, (Dollars in thousands) | Operating Leases | |||
2020 (excluding the six months ended June 30, 2020) | $ | 24,477 | ||
2021 | 48,887 | |||
2022 | 43,698 | |||
2023 | 42,602 | |||
2024 | 36,648 | |||
2025 and thereafter | 63,684 | |||
Total future lease payments (1) | $ | 259,996 | ||
Less: imputed interest | (20,639 | ) | ||
Total lease liabilities | $ | 239,357 |
Years ended December 31, (Dollars in thousands) | Operating Leases | ||||||||||
2020 (excluding the nine months ended September 30, 2020) | $ | 12,782 | |||||||||
2021 | 50,271 | ||||||||||
2022 | 45,430 | ||||||||||
2023 | 44,337 | ||||||||||
2024 | 38,437 | ||||||||||
2025 and thereafter | 75,799 | ||||||||||
Total future lease payments (1) | $ | 267,056 | |||||||||
Less: imputed interest | (20,404) | ||||||||||
Total lease liabilities | $ | 246,652 |
(1)As of September 30, 2020, we have additional leases that have not yet commenced. We estimate that we will record additional lease liabilities of $2.8 million upon commencement. These leases will commence in 2020 with lease terms of two years to ten years. 46 9. Goodwill and Other Intangible Assets |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Gross Amount | Accumulated Amortization | Net Carrying Amount | Gross Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||
Other intangible assets: | ||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | 42,000 | $ | 6,682 | $ | 35,318 | $ | 42,000 | $ | 3,818 | $ | 38,182 | ||||||||||||||||||||||||||
Other | 18,900 | 8,838 | 10,062 | 18,900 | 7,665 | 11,235 | ||||||||||||||||||||||||||||||||
Total other intangible assets | $ | 60,900 | $ | 15,520 | $ | 45,380 | $ | 60,900 | $ | 11,483 | $ | 49,417 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
(Dollars in thousands) | Gross Amount | Accumulated Amortization | Net Carrying Amount | Gross Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Other intangible assets: | ||||||||||||||||||||||||
Customer relationships | $ | 42,000 | �� | $ | 5,727 | $ | 36,273 | $ | 42,000 | $ | 3,818 | $ | 38,182 | |||||||||||
Other | 18,900 | 8,447 | 10,453 | 18,900 | 7,665 | 11,235 | ||||||||||||||||||
Total other intangible assets | $ | 60,900 | $ | 14,174 | $ | 46,726 | $ | 60,900 | $ | 11,483 | $ | 49,417 |
Years ended December 31, (Dollars in thousands) | Other Intangible Assets | |||
2020 (excluding the six months ended June 30, 2020) | $ | 2,691 | ||
2021 | 4,732 | |||
2022 | 4,732 | |||
2023 | 4,732 | |||
2024 | 4,732 | |||
2025 and thereafter | 25,107 | |||
Total future amortization expense | $ | 46,726 |
Years ended December 31, (Dollars in thousands) | Other Intangible Assets | ||||||||||
2020 (excluding the nine months ended September 30, 2020) | $ | 1,345 | |||||||||
2021 | 4,732 | ||||||||||
2022 | 4,732 | ||||||||||
2023 | 4,732 | ||||||||||
2024 | 4,732 | ||||||||||
2025 and thereafter | 25,107 | ||||||||||
Total future amortization expense | $ | 45,380 |
Carrying Value | ||||||||||||||||||||||||||
(Dollars in thousands) | Maturity | Principal value at September 30, 2020 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||
Other short-term borrowings | (1) | $ | 19,068 | $ | 19,068 | 17,430 | ||||||||||||||||||||
Total short-term borrowings | $ | 19,068 | $ | 17,430 | ||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||
3.50% Senior Notes | January 29, 2025 | $ | 350,000 | $ | 348,257 | $ | 347,987 | |||||||||||||||||||
3.125% Senior Notes | June 5, 2030 | 500,000 | 495,173 | 0 | ||||||||||||||||||||||
Total long-term debt | $ | 843,430 | $ | 347,987 |
Carrying Value | ||||||||||||||
(Dollars in thousands) | Maturity | Principal value at June 30, 2020 | June 30, 2020 | December 31, 2019 | ||||||||||
Short-term borrowings: | ||||||||||||||
Other short-term borrowings | (1) | $ | 50,924 | 50,924 | 17,430 | |||||||||
Total short-term borrowings | $ | 50,924 | $ | 17,430 | ||||||||||
Long-term debt: | ||||||||||||||
3.50% Senior Notes | January 29, 2025 | $ | 350,000 | $ | 348,166 | $ | 347,987 | |||||||
3.125% Senior Notes | June 5, 2030 | 500,000 | 495,054 | — | ||||||||||
Total long-term debt | $ | 843,220 | $ | 347,987 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Notional or Contractual Amount | Fair Value | Notional or Contractual Amount | Fair Value | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Derivative Assets (1) | Derivative Liabilities (1) | Derivative Assets (1) | Derivative Liabilities (1) | ||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Interest rate risks: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 0 | $ | 0 | $ | — | $ | 1,915,000 | $ | 22,676 | $ | — | ||||||||||||||||||||||||||
Interest rate swaps | 0 | — | 0 | 3,085,000 | — | 25,623 | ||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange forwards | 462,765 | 4,083 | — | — | — | — | ||||||||||||||||||||||||||||||||
Foreign exchange forwards | 59,992 | — | 278 | 300,250 | — | 2,154 | ||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||
Equity warrant assets | 256,774 | 202,184 | — | 225,893 | 165,473 | — | ||||||||||||||||||||||||||||||||
Client foreign exchange forwards | 6,955,487 | 138,522 | — | 4,661,517 | 114,546 | — | ||||||||||||||||||||||||||||||||
Client foreign exchange forwards | 5,754,213 | — | 108,959 | 4,326,059 | — | 94,745 | ||||||||||||||||||||||||||||||||
Client foreign currency options | 111,107 | 2,986 | — | 154,985 | 1,308 | — | ||||||||||||||||||||||||||||||||
Client foreign currency options | 111,107 | — | 2,986 | 154,985 | — | 1,308 | ||||||||||||||||||||||||||||||||
Client interest rate derivatives | 916,573 | 79,270 | — | 1,275,190 | 28,811 | — | ||||||||||||||||||||||||||||||||
Client interest rate derivatives (2) | 1,048,715 | — | 25,558 | 1,372,914 | — | 14,154 | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 427,045 | 137,781 | 310,138 | 112,361 | ||||||||||||||||||||||||||||||||||
Total derivatives | $ | 427,045 | $ | 137,781 | $ | 332,814 | $ | 137,984 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
Notional or Contractual Amount | Fair Value | Notional or Contractual Amount | Fair Value | |||||||||||||||||||||
(Dollars in thousands) | Derivative Assets (1) | Derivative Liabilities (1) | Derivative Assets (1) | Derivative Liabilities (1) | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate risks: | ||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | 1,915,000 | $ | 22,676 | $ | — | ||||||||||||
Interest rate swaps | — | — | — | 3,085,000 | — | 25,623 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||||||||
Foreign exchange forwards | 308,975 | — | 10,471 | 300,250 | — | 2,154 | ||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Equity warrant assets | 249,399 | 171,082 | — | 225,893 | 165,473 | — | ||||||||||||||||||
Client foreign exchange forwards | 6,937,993 | 179,166 | — | 4,661,517 | 114,546 | — | ||||||||||||||||||
Client foreign exchange forwards | 6,339,390 | — | 139,140 | 4,326,059 | — | 94,745 | ||||||||||||||||||
Client foreign currency options | 155,412 | 2,927 | — | 154,985 | 1,308 | — | ||||||||||||||||||
Client foreign currency options | 155,412 | — | 2,927 | 154,985 | — | 1,308 | ||||||||||||||||||
Client interest rate derivatives | 870,885 | 87,255 | — | 1,275,190 | 28,811 | — | ||||||||||||||||||
Client interest rate derivatives (2) | 977,084 | — | 28,676 | 1,372,914 | — | 14,154 | ||||||||||||||||||
Total derivatives not designated as hedging instruments | 440,430 | 181,214 | 310,138 | 112,361 | ||||||||||||||||||||
Total derivatives | $ | 440,430 | $ | 181,214 | $ | 332,814 | $ | 137,984 |
49 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Statement of income location | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Interest rate risks: | ||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income into income | Interest income - loans | $ | 16,004 | $ | (2,713) | $ | 33,924 | $ | (3,224) | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||||||||||||||||
Gains (losses) on revaluations of internal foreign currency instruments, net | Other noninterest income | $ | 17,085 | $ | (8,724) | $ | 20,138 | $ | (5,183) | |||||||||||||||||||||||
(Losses) gains on internal foreign exchange forward contracts, net | Other noninterest income | (19,344) | 8,660 | (20,010) | 4,917 | |||||||||||||||||||||||||||
Net (losses) gains associated with internal currency risk | $ | (2,259) | $ | (64) | $ | 128 | $ | (266) | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||
Gains (losses) on revaluations of client foreign currency instruments, net | Other noninterest income | $ | 71 | $ | (2,181) | $ | (3,302) | $ | (14,793) | |||||||||||||||||||||||
Gains on client foreign exchange forward contracts, net | Other noninterest income | 1,641 | 2,167 | 2,582 | 15,232 | |||||||||||||||||||||||||||
Net gains (losses) associated with client currency risk | $ | 1,712 | $ | (14) | $ | (720) | $ | 439 | ||||||||||||||||||||||||
Net gains on equity warrant assets | Gains on equity warrant assets, net | $ | 53,766 | $ | 37,561 | $ | 93,667 | $ | 107,213 | |||||||||||||||||||||||
Net gains (losses) on other derivatives | Other noninterest income | $ | 31,151 | $ | (1,123) | $ | 26,533 | $ | (2,619) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
(Dollars in thousands) | Statement of income location | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest rate risks: | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income into income | Interest income - loans | $ | 15,831 | $ | (508 | ) | $ | 17,920 | $ | (511 | ) | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||
Gains on revaluations of internal foreign currency instruments, net | Other noninterest income | $ | 11,428 | $ | 2,491 | $ | 3,053 | $ | 3,541 | |||||||||
Losses on internal foreign exchange forward contracts, net | Other noninterest income | (9,334 | ) | (3,274 | ) | (666 | ) | (3,743 | ) | |||||||||
Net gains (losses) associated with internal currency risk | $ | 2,094 | $ | (783 | ) | $ | 2,387 | $ | (202 | ) | ||||||||
Other derivative instruments: | ||||||||||||||||||
Gains (losses) on revaluations of client foreign currency instruments, net | Other noninterest income | $ | 4,911 | $ | 959 | $ | (3,373 | ) | $ | (12,612 | ) | |||||||
(Losses) gains on client foreign exchange forward contracts, net | Other noninterest income | (6,806 | ) | 411 | 941 | 13,065 | ||||||||||||
Net (losses) gains associated with client currency risk | $ | (1,895 | ) | $ | 1,370 | $ | (2,432 | ) | $ | 453 | ||||||||
Net gains on equity warrant assets | Gains on equity warrant assets, net | $ | 26,506 | $ | 48,347 | $ | 39,901 | $ | 69,652 | |||||||||
Net losses on other derivatives | Other noninterest income | $ | (273 | ) | $ | (1,131 | ) | $ | (4,618 | ) | $ | (1,496 | ) |
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 | 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 thousands) | Financial Instruments | Cash Collateral Received (1) | (Dollars in thousands) | Financial Instruments | Cash Collateral Received (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | Derivative assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | Interest rate swaps | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||
Foreign exchange forwards | 179,166 | — | 179,166 | (76,065 | ) | (49,755 | ) | 53,346 | Foreign exchange forwards | 142,605 | 0 | 142,605 | (56,584) | (19,049) | 66,972 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency options | 2,927 | — | 2,927 | (1,055 | ) | (1,169 | ) | 703 | Foreign currency options | 2,986 | 0 | 2,986 | (2,323) | (19) | 644 | |||||||||||||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | 87,255 | — | 87,255 | (87,255 | ) | — | — | Client interest rate derivatives | 79,270 | 0 | 79,270 | (79,270) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total derivative assets | 269,348 | — | 269,348 | (164,375 | ) | (50,924 | ) | 54,049 | Total derivative assets | 224,861 | 0 | 224,861 | (138,177) | (19,068) | 67,616 | |||||||||||||||||||||||||||||||||||||||||||||||
Reverse repurchase, securities borrowing, and similar arrangements | 317,048 | — | 317,048 | (317,048 | ) | — | — | Reverse repurchase, securities borrowing, and similar arrangements | 450,164 | 0 | 450,164 | (450,164) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 586,396 | $ | — | $ | 586,396 | $ | (481,423 | ) | $ | (50,924 | ) | $ | 54,049 | Total | $ | 675,025 | $ | 0 | $ | 675,025 | $ | (588,341) | $ | (19,068) | $ | 67,616 | |||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | Derivative assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 22,676 | $ | — | $ | 22,676 | $ | (22,598 | ) | $ | — | $ | 78 | Interest rate swaps | $ | 22,676 | $ | 0 | $ | 22,676 | $ | (22,598) | $ | 0 | $ | 78 | ||||||||||||||||||||||||||||||||||||
Foreign exchange forwards | 114,546 | — | 114,546 | (36,855 | ) | (17,095 | ) | 60,596 | Foreign exchange forwards | 114,546 | 0 | 114,546 | (36,855) | (17,095) | 60,596 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency options | 1,308 | — | 1,308 | (848 | ) | (335 | ) | 125 | Foreign currency options | 1,308 | 0 | 1,308 | (848) | (335) | 125 | |||||||||||||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | 28,811 | — | 28,811 | (28,811 | ) | — | — | Client interest rate derivatives | 28,811 | 0 | 28,811 | (28,811) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total derivative assets | 167,341 | — | 167,341 | (89,112 | ) | (17,430 | ) | 60,799 | Total derivative assets | 167,341 | 0 | 167,341 | (89,112) | (17,430) | 60,799 | |||||||||||||||||||||||||||||||||||||||||||||||
Reverse repurchase, securities borrowing, and similar arrangements | 289,340 | — | 289,340 | (289,340 | ) | — | — | Reverse repurchase, securities borrowing, and similar arrangements | 289,340 | 0 | 289,340 | (289,340) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 456,681 | $ | — | $ | 456,681 | $ | (378,452 | ) | $ | (17,430 | ) | $ | 60,799 | Total | $ | 456,681 | $ | 0 | $ | 456,681 | $ | (378,452) | $ | (17,430) | $ | 60,799 |
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 | 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 thousands) | Financial Instruments | Cash Collateral Pledged (1) | (Dollars in thousands) | Financial Instruments | Cash Collateral Pledged (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | Derivative liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | Interest rate swaps | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||
Foreign exchange forwards | 149,611 | — | 149,611 | (54,867 | ) | (14,031 | ) | 80,713 | Foreign exchange forwards | 109,237 | 0 | 109,237 | (49,862) | (12,918) | 46,457 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency options | 2,927 | — | 2,927 | (987 | ) | — | 1,940 | Foreign currency options | 2,986 | 0 | 2,986 | (644) | 0 | 2,342 | ||||||||||||||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | 28,676 | — | 28,676 | (6,566 | ) | (21,376 | ) | 734 | Client interest rate derivatives | 25,558 | 0 | 25,558 | 0 | (24,898) | 660 | |||||||||||||||||||||||||||||||||||||||||||||||
Total derivative liabilities | 181,214 | — | 181,214 | (62,420 | ) | (35,407 | ) | 83,387 | Total derivative liabilities | 137,781 | 0 | 137,781 | (50,506) | (37,816) | 49,459 | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase, securities lending, and similar arrangements | — | — | — | — | — | — | Repurchase, securities lending, and similar arrangements | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 181,214 | $ | — | $ | 181,214 | $ | (62,420 | ) | $ | (35,407 | ) | $ | 83,387 | Total | $ | 137,781 | $ | 0 | $ | 137,781 | $ | (50,506) | $ | (37,816) | $ | 49,459 | |||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | Derivative liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 25,623 | — | 25,623 | (22,676 | ) | (2,947 | ) | — | Interest rate swaps | $ | 25,623 | $ | 0 | $ | 25,623 | $ | (22,676) | $ | (2,947) | $ | 0 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forwards | 96,899 | — | 96,899 | (33,314 | ) | (22,030 | ) | 41,555 | Foreign exchange forwards | 96,899 | 0 | 96,899 | (33,314) | (22,030) | 41,555 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency options | 1,308 | — | 1,308 | (531 | ) | — | 777 | Foreign currency options | 1,308 | 0 | 1,308 | (531) | 0 | 777 | ||||||||||||||||||||||||||||||||||||||||||||||||
Client interest rate derivatives | 14,154 | — | 14,154 | — | (13,936 | ) | 218 | Client interest rate derivatives | 14,154 | 0 | 14,154 | 0 | (13,936) | 218 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total derivative liabilities | 137,984 | — | 137,984 | (56,521 | ) | (38,913 | ) | 42,550 | Total derivative liabilities | 137,984 | 0 | 137,984 | (56,521) | (38,913) | 42,550 | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase, securities lending, and similar arrangements | — | — | — | — | — | — | Repurchase, securities lending, and similar arrangements | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 137,984 | $ | — | $ | 137,984 | $ | (56,521 | ) | $ | (38,913 | ) | $ | 42,550 | Total | $ | 137,984 | $ | 0 | $ | 137,984 | $ | (56,521) | $ | (38,913) | $ | 42,550 |
12. Noninterest Income |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||
Gains on investment securities, net | $ | 189,837 | $ | 29,849 | $ | 270,760 | $ | 106,575 | ||||||||||||||||||
Gains on equity warrant assets, net | 53,766 | 37,561 | 93,667 | 107,213 | ||||||||||||||||||||||
Client investment fees | 31,914 | 46,679 | 107,192 | 136,905 | ||||||||||||||||||||||
Foreign exchange fees | 43,881 | 40,309 | 127,642 | 116,863 | ||||||||||||||||||||||
Credit card fees | 22,756 | 30,158 | 72,348 | 86,431 | ||||||||||||||||||||||
Deposit service charges | 22,015 | 22,482 | 67,115 | 65,496 | ||||||||||||||||||||||
Lending related fees | 13,562 | 11,707 | 37,851 | 36,857 | ||||||||||||||||||||||
Letters of credit and standby letters of credit fees | 12,192 | 10,842 | 35,155 | 31,205 | ||||||||||||||||||||||
Investment banking revenue | 92,181 | 38,516 | 280,551 | 137,005 | ||||||||||||||||||||||
Commissions | 16,257 | 12,275 | 49,197 | 40,812 | ||||||||||||||||||||||
Other | 49,222 | 13,631 | 76,887 | 42,773 | ||||||||||||||||||||||
Total noninterest income | $ | 547,583 | $ | 294,009 | $ | 1,218,365 | $ | 908,135 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Noninterest income: | ||||||||||||||||
Gains on investment securities, net | $ | 34,868 | $ | 47,698 | $ | 80,923 | $ | 76,726 | ||||||||
Gains on equity warrant assets, net | 26,506 | 48,347 | 39,901 | 69,652 | ||||||||||||
Client investment fees | 31,885 | 45,744 | 75,278 | 90,226 | ||||||||||||
Foreign exchange fees | 36,256 | 38,506 | 83,761 | 76,554 | ||||||||||||
Credit card fees | 21,288 | 28,790 | 49,592 | 56,273 | ||||||||||||
Deposit service charges | 20,511 | 22,075 | 45,100 | 43,014 | ||||||||||||
Lending related fees | 11,164 | 11,213 | 24,289 | 25,150 | ||||||||||||
Letters of credit and standby letters of credit fees | 11,421 | 11,009 | 22,963 | 20,363 | ||||||||||||
Investment banking revenue | 141,503 | 48,694 | 188,370 | 98,489 | ||||||||||||
Commissions | 16,918 | 14,429 | 32,940 | 28,537 | ||||||||||||
Other | 16,528 | 17,245 | 27,665 | 29,142 | ||||||||||||
Total noninterest income | $ | 368,848 | $ | 333,750 | $ | 670,782 | $ | 614,126 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Gains on non-marketable and other equity securities, net | $ | 189,837 | $ | 29,849 | $ | 209,595 | $ | 110,480 | ||||||||||||||||||
Gains (losses) on sales of available-for-sale securities, net | — | 0 | 61,165 | (3,905) | ||||||||||||||||||||||
Total gains on investment securities, net | $ | 189,837 | $ | 29,849 | $ | 270,760 | $ | 106,575 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Gains on non-marketable and other equity securities, net | $ | 34,868 | $ | 47,973 | $ | 19,758 | $ | 80,631 | ||||||||
(Losses) gains on sales of available-for-sale securities, net | — | (275 | ) | 61,165 | (3,905 | ) | ||||||||||
Total gains on investment securities, net | $ | 34,868 | $ | 47,698 | $ | 80,923 | $ | 76,726 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Equity warrant assets: | ||||||||||||||||
Gains on exercises, net | $ | 9,435 | $ | 40,226 | $ | 32,730 | $ | 49,180 | ||||||||
Terminations | (439 | ) | (1,045 | ) | (872 | ) | (1,884 | ) | ||||||||
Changes in fair value, net | 17,510 | 9,166 | 8,043 | 22,356 | ||||||||||||
Total net gains on equity warrant assets | $ | 26,506 | $ | 48,347 | $ | 39,901 | $ | 69,652 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Equity warrant assets: | ||||||||||||||||||||||||||
Gains on exercises, net | $ | 23,940 | $ | 30,047 | $ | 59,370 | $ | 90,357 | ||||||||||||||||||
Terminations | (361) | (481) | (1,332) | (2,931) | ||||||||||||||||||||||
Changes in fair value, net | 30,187 | 7,995 | 35,629 | 19,787 | ||||||||||||||||||||||
Total net gains on equity warrant assets | $ | 53,766 | $ | 37,561 | $ | 93,667 | $ | 107,213 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Client investment fees by type: | ||||||||||||||||||||||||||
Sweep money market fees | $ | 18,155 | $ | 26,202 | $ | 60,617 | $ | 79,698 | ||||||||||||||||||
Asset management fees (1) | 12,172 | 7,256 | 32,905 | 20,883 | ||||||||||||||||||||||
Repurchase agreement fees | 1,587 | 13,221 | 13,670 | 36,324 | ||||||||||||||||||||||
Total client investment fees (2) | $ | 31,914 | $ | 46,679 | $ | 107,192 | $ | 136,905 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Client investment fees by type: | ||||||||||||||||
Sweep money market fees | $ | 19,413 | $ | 26,952 | $ | 42,462 | $ | 53,496 | ||||||||
Asset management fees (1) | 11,596 | 6,956 | 20,733 | 13,628 | ||||||||||||
Repurchase agreement fees | 876 | 11,836 | 12,083 | 23,102 | ||||||||||||
Total client investment fees (2) | $ | 31,885 | $ | 45,744 | $ | 75,278 | $ | 90,226 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Foreign exchange fees by instrument type: | ||||||||||||||||
Spot contract commissions | $ | 33,093 | $ | 34,696 | $ | 74,027 | $ | 69,725 | ||||||||
Forward contract commissions | 3,052 | 3,778 | 9,391 | 6,773 | ||||||||||||
Option premium fees | 111 | 32 | 343 | 56 | ||||||||||||
Total foreign exchange fees | $ | 36,256 | $ | 38,506 | $ | 83,761 | $ | 76,554 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Foreign exchange fees by instrument type: | ||||||||||||||||||||||||||
Spot contract commissions | $ | 38,794 | $ | 36,836 | $ | 112,821 | $ | 106,561 | ||||||||||||||||||
Forward contract commissions | 4,613 | 3,371 | 14,004 | 10,144 | ||||||||||||||||||||||
Option premium fees | 474 | 102 | 817 | 158 | ||||||||||||||||||||||
Total foreign exchange fees | $ | 43,881 | $ | 40,309 | $ | 127,642 | $ | 116,863 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Credit card fees by instrument type: | ||||||||||||||||
Card interchange fees, net | $ | 15,314 | $ | 22,855 | $ | 37,089 | $ | 44,248 | ||||||||
Merchant service fees | 5,030 | 4,286 | 10,057 | 8,821 | ||||||||||||
Card service fees | 944 | 1,649 | 2,446 | 3,204 | ||||||||||||
Total credit card fees | $ | 21,288 | $ | 28,790 | $ | 49,592 | $ | 56,273 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Credit card fees by instrument type: | ||||||||||||||||||||||||||
Card interchange fees, net | $ | 18,168 | $ | 24,560 | $ | 55,257 | $ | 68,808 | ||||||||||||||||||
Merchant service fees | 3,670 | 3,943 | 13,727 | 12,763 | ||||||||||||||||||||||
Card service fees | 918 | 1,655 | 3,364 | 4,860 | ||||||||||||||||||||||
Total credit card fees | $ | 22,756 | $ | 30,158 | $ | 72,348 | $ | 86,431 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Lending related fees by instrument type: | ||||||||||||||||
Unused commitment fees | $ | 8,324 | $ | 7,051 | $ | 16,730 | $ | 16,721 | ||||||||
Other | 2,840 | 4,162 | 7,559 | 8,429 | ||||||||||||
Total lending related fees | $ | 11,164 | $ | 11,213 | $ | 24,289 | $ | 25,150 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Lending related fees by instrument type: | ||||||||||||||||||||||||||
Unused commitment fees | $ | 9,872 | $ | 8,339 | $ | 26,602 | $ | 25,060 | ||||||||||||||||||
Other | 3,690 | 3,368 | 11,249 | 11,797 | ||||||||||||||||||||||
Total lending related fees | $ | 13,562 | $ | 11,707 | $ | 37,851 | $ | 36,857 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Investment banking revenue: | ||||||||||||||||
Underwriting fees | $ | 131,085 | $ | 42,584 | $ | 162,375 | $ | 78,356 | ||||||||
Advisory fees | 8,922 | 5,315 | 24,409 | 17,588 | ||||||||||||
Private placements and other | 1,496 | 795 | 1,586 | 2,545 | ||||||||||||
Total investment banking revenue | $ | 141,503 | $ | 48,694 | $ | 188,370 | $ | 98,489 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Investment banking revenue: | ||||||||||||||||||||||||||
Underwriting fees | $ | 85,009 | $ | 31,016 | $ | 247,384 | $ | 109,371 | ||||||||||||||||||
Advisory fees | 1,761 | 5,200 | 26,170 | 22,789 | ||||||||||||||||||||||
Private placements and other | 5,411 | 2,300 | 6,997 | 4,845 | ||||||||||||||||||||||
Total investment banking revenue | $ | 92,181 | $ | 38,516 | $ | 280,551 | $ | 137,005 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Other noninterest income by instrument type: | ||||||||||||||||
Fund management fees | $ | 8,845 | $ | 7,758 | $ | 16,753 | $ | 15,799 | ||||||||
Net gains (losses) on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1) | 199 | 587 | (45 | ) | 251 | |||||||||||
Other service revenue | 7,484 | 8,900 | 10,957 | 13,092 | ||||||||||||
Total other noninterest income | $ | 16,528 | $ | 17,245 | $ | 27,665 | $ | 29,142 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Other noninterest income by instrument type: | ||||||||||||||||||||||||||
Fund management fees | $ | 9,669 | $ | 8,493 | $ | 26,422 | $ | 24,292 | ||||||||||||||||||
Net (losses) gains on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1) | (547) | (78) | (592) | 173 | ||||||||||||||||||||||
Gains from conversion of convertible debt options | 30,018 | 0 | 30,018 | 0 | ||||||||||||||||||||||
Other service revenue | 10,082 | 5,216 | 21,039 | 18,308 | ||||||||||||||||||||||
Total other noninterest income | $ | 49,222 | $ | 13,631 | $ | 76,887 | $ | 42,773 |
Three months ended June 30, 2020 (Dollars in thousands) | Global Commercial Bank (2) | SVB Private Bank | SVB Capital (2) | SVB Leerink (2) | Other Items | Total | ||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||
Client investment fees | $ | 31,308 | $ | 577 | $ | — | $ | — | $ | — | $ | 31,885 | ||||||||||||
Spot contract commissions | 32,865 | 98 | — | — | 130 | 33,093 | ||||||||||||||||||
Card interchange fees, gross | 25,930 | 5 | — | — | 291 | 26,226 | ||||||||||||||||||
Merchant service fees | 5,030 | — | — | — | — | 5,030 | ||||||||||||||||||
Deposit service charges | 20,460 | 13 | — | — | 38 | 20,511 | ||||||||||||||||||
Investment banking revenue | — | — | — | 141,503 | — | 141,503 | ||||||||||||||||||
Commissions | — | — | — | 16,918 | — | 16,918 | ||||||||||||||||||
Fund management fees | — | — | 7,415 | 1,430 | — | 8,845 | ||||||||||||||||||
Correspondent bank rebates | 1,371 | — | — | — | — | 1,371 | ||||||||||||||||||
Total revenue from contracts with customers | $ | 116,964 | $ | 693 | $ | 7,415 | $ | 159,851 | $ | 459 | $ | 285,382 | ||||||||||||
Revenues outside the scope of ASC 606 (1) | 16,510 | (23 | ) | 14,035 | 3,966 | 48,978 | 83,466 | |||||||||||||||||
Total noninterest income | $ | 133,474 | $ | 670 | $ | 21,450 | $ | 163,817 | $ | 49,437 | $ | 368,848 |
Three months ended September 30, 2020 (Dollars in thousands) | Global Commercial Bank (2) | SVB Private Bank | SVB Capital (2) | SVB Leerink (2) | Other Items | Total | ||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | 31,132 | $ | 782 | $ | 0 | $ | 0 | $ | 0 | $ | 31,914 | ||||||||||||||||||||||||||
Spot contract commissions | 38,546 | 108 | 0 | 0 | 140 | 38,794 | ||||||||||||||||||||||||||||||||
Card interchange fees, gross | 29,255 | 5 | 0 | 0 | 287 | 29,547 | ||||||||||||||||||||||||||||||||
Merchant service fees | 3,670 | 0 | 0 | 0 | 0 | 3,670 | ||||||||||||||||||||||||||||||||
Deposit service charges | 21,914 | 20 | 0 | 0 | 81 | 22,015 | ||||||||||||||||||||||||||||||||
Investment banking revenue | 0 | 0 | 0 | 92,181 | 0 | 92,181 | ||||||||||||||||||||||||||||||||
Commissions | 0 | 0 | 0 | 16,257 | 0 | 16,257 | ||||||||||||||||||||||||||||||||
Fund management fees | 0 | 0 | 8,239 | 1,430 | 0 | 9,669 | ||||||||||||||||||||||||||||||||
Performance fees | 0 | 0 | 1,613 | 0 | 0 | 1,613 | ||||||||||||||||||||||||||||||||
Correspondent bank rebates | 1,377 | 0 | 0 | 0 | 0 | 1,377 | ||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | 125,894 | $ | 915 | $ | 9,852 | $ | 109,868 | $ | 508 | $ | 247,037 | ||||||||||||||||||||||||||
Revenues outside the scope of ASC 606 (1) | 21,700 | 1 | 50,528 | 3,783 | 224,534 | 300,546 | ||||||||||||||||||||||||||||||||
Total noninterest income | $ | 147,594 | $ | 916 | $ | 60,380 | $ | 113,651 | $ | 225,042 | $ | 547,583 |
Three months ended September 30, 2019 (Dollars in thousands) | Global Commercial Bank (2) | SVB Private Bank | SVB Capital (2) | SVB Leerink (2) | Other Items | Total | ||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | 46,171 | $ | 508 | $ | 0 | $ | 0 | $ | 0 | $ | 46,679 | ||||||||||||||||||||||||||
Spot contract commissions | 36,644 | 89 | 0 | 0 | 103 | 36,836 | ||||||||||||||||||||||||||||||||
Card interchange fees, gross | 34,867 | 0 | 0 | 0 | 181 | 35,048 | ||||||||||||||||||||||||||||||||
Merchant service fees | 3,943 | 0 | 0 | 0 | 0 | 3,943 | ||||||||||||||||||||||||||||||||
Deposit service charges | 22,263 | 36 | 0 | 0 | 183 | 22,482 | ||||||||||||||||||||||||||||||||
Investment banking revenue | 0 | 0 | 0 | 38,516 | 0 | 38,516 | ||||||||||||||||||||||||||||||||
Commissions | 0 | 0 | 0 | 12,275 | 0 | 12,275 | ||||||||||||||||||||||||||||||||
Fund management fees | 0 | 0 | 7,063 | 1,430 | 0 | 8,493 | ||||||||||||||||||||||||||||||||
Correspondent bank rebates | 1,633 | 0 | 0 | 0 | 0 | 1,633 | ||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | 145,521 | $ | 633 | $ | 7,063 | $ | 52,221 | $ | 467 | $ | 205,905 | ||||||||||||||||||||||||||
Revenues outside the scope of ASC 606 (1) | 15,508 | 1 | 27,892 | 726 | 43,977 | 88,104 | ||||||||||||||||||||||||||||||||
Total noninterest income | $ | 161,029 | $ | 634 | $ | 34,955 | $ | 52,947 | $ | 44,444 | $ | 294,009 |
Nine months ended September 30, 2020 (Dollars in thousands) | Global Commercial Bank (2) | SVB Private Bank | SVB Capital (2) | SVB Leerink (2) | Other Items | Total | ||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | 105,176 | $ | 2,016 | $ | 0 | $ | 0 | $ | 0 | $ | 107,192 | ||||||||||||||||||||||||||
Spot contract commissions | 112,086 | 367 | 0 | 0 | 368 | 112,821 | ||||||||||||||||||||||||||||||||
Card interchange fees, gross | 90,909 | 17 | 0 | 0 | 1,144 | 92,070 | ||||||||||||||||||||||||||||||||
Merchant service fees | 13,727 | 0 | 0 | 0 | 0 | 13,727 | ||||||||||||||||||||||||||||||||
Deposit service charges | 66,612 | 60 | 0 | 0 | 443 | 67,115 | ||||||||||||||||||||||||||||||||
Investment banking revenue | 0 | 0 | 0 | 280,551 | 0 | 280,551 | ||||||||||||||||||||||||||||||||
Commissions | 0 | 0 | 0 | 49,197 | 0 | 49,197 | ||||||||||||||||||||||||||||||||
Fund management fees | 0 | 0 | 22,132 | 4,290 | 0 | 26,422 | ||||||||||||||||||||||||||||||||
Performance fees | 0 | 0 | 3,601 | 0 | 0 | 3,601 | ||||||||||||||||||||||||||||||||
Correspondent bank rebates | 4,151 | 0 | 0 | 0 | 0 | 4,151 | ||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | 392,661 | $ | 2,460 | $ | 25,733 | $ | 334,038 | $ | 1,955 | $ | 756,847 | ||||||||||||||||||||||||||
Revenues outside the scope of ASC 606 (1) | 55,241 | 26 | 61,015 | 6,107 | 339,129 | 461,518 | ||||||||||||||||||||||||||||||||
Total noninterest income | $ | 447,902 | $ | 2,486 | $ | 86,748 | $ | 340,145 | $ | 341,084 | $ | 1,218,365 |
Three months ended June 30, 2019 (Dollars in thousands) | Global Commercial Bank (2) | SVB Private Bank | SVB Capital (2) | SVB Leerink (2) | Other Items | Total | ||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||
Client investment fees (3) | $ | 45,278 | $ | 466 | $ | — | $ | — | $ | — | $ | 45,744 | ||||||||||||
Spot contract commissions | 34,428 | 165 | — | — | 103 | 34,696 | ||||||||||||||||||
Card interchange fees, gross | 41,887 | — | — | — | 190 | 42,077 | ||||||||||||||||||
Merchant service fees | 4,286 | — | — | — | — | 4,286 | ||||||||||||||||||
Deposit service charges | 21,750 | 33 | — | — | 292 | 22,075 | ||||||||||||||||||
Investment banking revenue | — | — | — | 48,694 | — | 48,694 | ||||||||||||||||||
Commissions | — | — | — | 14,429 | — | 14,429 | ||||||||||||||||||
Fund management fees | — | — | 6,328 | 1,430 | — | 7,758 | ||||||||||||||||||
Correspondent bank rebates | 1,612 | — | — | — | — | 1,612 | ||||||||||||||||||
Total revenue from contracts with customers | $ | 149,241 | $ | 664 | $ | 6,328 | $ | 64,553 | $ | 585 | $ | 221,371 | ||||||||||||
Revenues outside the scope of ASC 606 (1) | 8,364 | 22 | 33,731 | 2,447 | 67,815 | 112,379 | ||||||||||||||||||
Total noninterest income | $ | 157,605 | $ | 686 | $ | 40,059 | $ | 67,000 | $ | 68,400 | $ | 333,750 |
Nine months ended September 30, 2019 (Dollars in thousands) | Global Commercial Bank (2) | SVB Private Bank | SVB Capital (2) | SVB Leerink (2) | Other Items | Total | ||||||||||||||||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | 135,551 | $ | 1,354 | $ | 0 | $ | 0 | $ | 0 | $ | 136,905 | ||||||||||||||||||||||||||
Spot contract commissions | 105,877 | 376 | 0 | 0 | 308 | 106,561 | ||||||||||||||||||||||||||||||||
Card interchange fees, gross | 115,468 | 0 | 0 | 0 | 518 | 115,986 | ||||||||||||||||||||||||||||||||
Merchant service fees | 12,764 | 0 | 0 | 0 | 0 | 12,764 | ||||||||||||||||||||||||||||||||
Deposit service charges | 64,806 | 104 | 0 | 0 | 586 | 65,496 | ||||||||||||||||||||||||||||||||
Investment banking revenue | 0 | 0 | 0 | 137,005 | 0 | 137,005 | ||||||||||||||||||||||||||||||||
Commissions | 0 | 0 | 0 | 40,812 | 0 | 40,812 | ||||||||||||||||||||||||||||||||
Fund management fees | 0 | 0 | 20,050 | 4,242 | 0 | 24,292 | ||||||||||||||||||||||||||||||||
Correspondent bank rebates | 4,712 | 0 | 0 | 0 | 0 | 4,712 | ||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | 439,178 | $ | 1,834 | $ | 20,050 | $ | 182,059 | $ | 1,412 | $ | 644,533 | ||||||||||||||||||||||||||
Revenues outside the scope of ASC 606 (1) | 32,314 | (5) | 79,810 | 6,005 | 145,478 | 263,602 | ||||||||||||||||||||||||||||||||
Total noninterest income | $ | 471,492 | $ | 1,829 | $ | 99,860 | $ | 188,064 | $ | 146,890 | $ | 908,135 |
Six months ended June 30, 2020 (Dollars in thousands) | Global Commercial Bank (2) | SVB Private Bank | SVB Capital (2) | SVB Leerink (2) | Other Items | Total | ||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||
Client investment fees | $ | 74,044 | $ | 1,234 | $ | — | $ | — | $ | — | $ | 75,278 | ||||||||||||
Spot contract commissions | 73,540 | 259 | — | — | 228 | 74,027 | ||||||||||||||||||
Card interchange fees, gross | 61,654 | 12 | — | — | 857 | 62,523 | ||||||||||||||||||
Merchant service fees | 10,057 | — | — | — | — | 10,057 | ||||||||||||||||||
Deposit service charges | 44,698 | 40 | — | — | 362 | 45,100 | ||||||||||||||||||
Investment banking revenue | — | — | — | 188,370 | — | 188,370 | ||||||||||||||||||
Commissions | — | — | — | 32,940 | — | 32,940 | ||||||||||||||||||
Fund management fees | — | — | 13,893 | 2,860 | — | 16,753 | ||||||||||||||||||
Correspondent bank rebates | 2,774 | — | — | — | — | 2,774 | ||||||||||||||||||
Total revenue from contracts with customers | $ | 266,767 | $ | 1,545 | $ | 13,893 | $ | 224,170 | $ | 1,447 | $ | 507,822 | ||||||||||||
Revenues outside the scope of ASC 606 (1) | 33,541 | 25 | 12,475 | 2,324 | 114,595 | 162,960 | ||||||||||||||||||
Total noninterest income | $ | 300,308 | $ | 1,570 | $ | 26,368 | $ | 226,494 | $ | 116,042 | $ | 670,782 |
Six months ended June 30, 2019 (Dollars in thousands) | Global Commercial Bank (2) | SVB Private Bank | SVB Capital (2) | SVB Leerink (2) | Other Items | Total | ||||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||||||||||
Client investment fees (3) | $ | 89,380 | $ | 846 | $ | — | $ | — | $ | — | $ | 90,226 | ||||||||||||
Spot contract commissions | 69,233 | 288 | — | — | 204 | 69,725 | ||||||||||||||||||
Card interchange fees, gross | 80,601 | — | — | — | 337 | 80,938 | ||||||||||||||||||
Merchant service fees | 8,821 | — | — | — | — | 8,821 | ||||||||||||||||||
Deposit service charges | 42,543 | 68 | — | — | 403 | 43,014 | ||||||||||||||||||
Investment banking revenue | — | — | — | 98,489 | — | 98,489 | ||||||||||||||||||
Commissions | — | — | — | 28,537 | — | 28,537 | ||||||||||||||||||
Fund management fees | — | — | 12,987 | 2,812 | — | 15,799 | ||||||||||||||||||
Correspondent bank rebates | 3,079 | — | — | — | — | 3,079 | ||||||||||||||||||
Total revenue from contracts with customers | $ | 293,657 | $ | 1,202 | $ | 12,987 | $ | 129,838 | $ | 944 | $ | 438,628 | ||||||||||||
Revenues outside the scope of ASC 606 (1) | 16,808 | (6 | ) | 51,917 | 5,279 | 101,500 | 175,498 | |||||||||||||||||
Total noninterest income | $ | 310,465 | $ | 1,196 | $ | 64,904 | $ | 135,117 | $ | 102,444 | $ | 614,126 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Lending and other client related processing costs | $ | 6,803 | $ | 8,763 | $ | 15,961 | $ | 13,940 | ||||||||
Correspondent bank fees | 3,833 | 3,569 | 7,819 | 7,313 | ||||||||||||
Investment banking activities | 7,768 | 3,869 | 10,798 | 8,054 | ||||||||||||
Trade order execution costs | 2,614 | 2,828 | 5,359 | 5,344 | ||||||||||||
Data processing services | 3,507 | 2,659 | 6,961 | 5,558 | ||||||||||||
Telephone | 1,889 | 2,422 | 4,116 | 5,163 | ||||||||||||
Dues and publications | 910 | 860 | 2,040 | 2,384 | ||||||||||||
Postage and supplies | 723 | 678 | 1,579 | 1,448 | ||||||||||||
Other | 11,600 | 11,769 | 25,717 | 21,749 | ||||||||||||
Total other noninterest expense | $ | 39,647 | $ | 37,417 | $ | 80,350 | $ | 70,953 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Lending and other client related processing costs | $ | 7,194 | $ | 7,502 | $ | 23,155 | $ | 21,442 | ||||||||||||||||||
Correspondent bank fees | 3,581 | 3,657 | 11,400 | 10,970 | ||||||||||||||||||||||
Investment banking activities | 2,835 | 1,864 | 13,633 | 9,918 | ||||||||||||||||||||||
Trade order execution costs | 2,806 | 2,615 | 8,165 | 7,959 | ||||||||||||||||||||||
Data processing services | 3,984 | 3,066 | 10,945 | 8,624 | ||||||||||||||||||||||
Telephone | 2,342 | 2,466 | 6,458 | 7,629 | ||||||||||||||||||||||
Dues and publications | 1,159 | 1,055 | 3,199 | 3,439 | ||||||||||||||||||||||
Postage and supplies | 538 | 720 | 2,117 | 2,168 | ||||||||||||||||||||||
Other | 13,114 | 11,161 | 38,831 | 32,910 | ||||||||||||||||||||||
Total other noninterest expense | $ | 37,553 | $ | 34,106 | $ | 117,903 | $ | 105,059 |
•Global Commercial Bank is comprised of results from the following: ◦Our Commercial Bank products and services are 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 Global Fund Banking (formerly Private Equity) Division provides banking products and services primarily to our private equity and venture capital clients. ◦SVBWine provides banking products and services to our premium wine industry clients, including vineyard development loans. ◦Debt Fund Investments is comprised of our investments in certain debt funds in which we are a strategic investor. 60 •SVB Private Bank is the private banking division of the Bank, which 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. 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 and other secured and unsecured lending products, as well as cash and wealth management services. In addition, we provide real estate secured loans to eligible employees through our Employee Home Ownership Program. •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. SVB Capital generates income for the Company primarily from investment returns (including carried interest allocations) and management fees. • |
SVB Leerink is an investment bank specializing in the equity and convertible capital markets, mergers and acquisitions, equity research and sales and trading for growth and innovation-minded healthcare and life science companies and operates as a wholly-owned subsidiary of SVB Financial. SVB Leerink provides investment banking services across all subsectors of healthcare including: biotechnology, pharmaceuticals, medical devices, diagnostic and life science tools, healthcare services and digital health. SVB Leerink focuses on two primary lines of business: (i) investment banking focused on providing companies with capital-raising services, financial advice on mergers and acquisitions, sales and trading services and equity research, and (ii) sponsorship of private investment funds. |
(Dollars in thousands) | Global Commercial Bank (1) | SVB Private Bank | SVB Capital (1) | SVB Leerink (1) | Other Items (2) | Total | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Net interest income (loss) | $ | 512,963 | $ | 19,145 | $ | 2 | $ | 175 | $ | (4,545) | $ | 527,740 | ||||||||||||||||||||||||||
Reduction (provision for) credit losses | 37,847 | 14,881 | — | — | (710) | 52,018 | ||||||||||||||||||||||||||||||||
Noninterest income | 147,594 | 916 | 60,380 | 113,651 | 225,042 | 547,583 | ||||||||||||||||||||||||||||||||
Noninterest expense (3) | (258,035) | (12,293) | (11,198) | (77,567) | (131,928) | (491,021) | ||||||||||||||||||||||||||||||||
Income before income tax expense (4) | $ | 440,369 | $ | 22,649 | $ | 49,184 | $ | 36,259 | $ | 87,859 | $ | 636,320 | ||||||||||||||||||||||||||
Total average loans, amortized cost | $ | 30,763,715 | $ | 4,263,324 | $ | 0 | $ | 0 | $ | 2,291,561 | $ | 37,318,600 | ||||||||||||||||||||||||||
Total average assets (5) (6) | 77,802,730 | 4,297,011 | 413,882 | 605,263 | 5,229,480 | 88,348,366 | ||||||||||||||||||||||||||||||||
Total average deposits | 74,825,725 | 2,163,903 | 0 | 0 | 690,388 | 77,680,016 | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 455,161 | $ | 12,772 | $ | 9 | $ | 277 | $ | 52,425 | $ | 520,644 | ||||||||||||||||||||||||||
Provision for credit losses | (34,075) | (1,910) | 0 | 0 | (551) | (36,536) | ||||||||||||||||||||||||||||||||
Noninterest income | 161,029 | 634 | 34,955 | 52,947 | 44,444 | 294,009 | ||||||||||||||||||||||||||||||||
Noninterest expense (3) | (213,786) | (11,638) | (8,129) | (55,200) | (102,571) | (391,324) | ||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (4) | $ | 368,329 | $ | (142) | $ | 26,835 | $ | (1,976) | $ | (6,253) | $ | 386,793 | ||||||||||||||||||||||||||
Total average loans, amortized cost | $ | 25,839,647 | $ | 3,400,889 | $ | 0 | $ | 0 | $ | 581,890 | $ | 29,822,426 | ||||||||||||||||||||||||||
Total average assets (5) (6) (8) | 58,384,473 | 3,431,313 | 396,031 | 428,848 | 2,687,083 | 65,327,748 | ||||||||||||||||||||||||||||||||
Total average deposits | 55,250,154 | 1,497,303 | 0 | 0 | 487,512 | 57,234,969 | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 1,461,768 | $ | 52,952 | $ | 28 | $ | 373 | $ | 49,683 | $ | 1,564,804 | ||||||||||||||||||||||||||
Provision for credit losses | (200,020) | (44,194) | 0 | 0 | (13,729) | (257,943) | ||||||||||||||||||||||||||||||||
Noninterest income | 447,902 | 2,486 | 86,748 | 340,145 | 341,084 | 1,218,365 | ||||||||||||||||||||||||||||||||
Noninterest expense (3) | (724,233) | (32,547) | (28,040) | (248,254) | (337,168) | (1,370,242) | ||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (4) | $ | 985,417 | $ | (21,303) | $ | 58,736 | $ | 92,264 | $ | 39,870 | $ | 1,154,984 | ||||||||||||||||||||||||||
Total average loans, net of unearned income | $ | 30,126,870 | $ | 4,053,018 | $ | 0 | $ | 0 | $ | 1,656,039 | $ | 35,835,927 | ||||||||||||||||||||||||||
Total average assets (5) (6) | 69,212,733 | 4,087,786 | 430,391 | 514,836 | 5,514,904 | 79,760,650 | ||||||||||||||||||||||||||||||||
Total average deposits | 66,408,359 | 2,069,196 | 0 | 0 | 688,509 | 69,166,064 | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 1,360,997 | $ | 37,200 | $ | 20 | $ | 961 | $ | 163,755 | $ | 1,562,933 | ||||||||||||||||||||||||||
Provision for credit losses | (79,175) | (1,779) | 0 | 0 | (8,079) | (89,033) | ||||||||||||||||||||||||||||||||
Noninterest income | 471,492 | 1,829 | 99,860 | 188,064 | 146,890 | 908,135 | ||||||||||||||||||||||||||||||||
Noninterest expense (3) | (617,933) | (30,015) | (21,794) | (177,675) | (293,093) | (1,140,510) | ||||||||||||||||||||||||||||||||
Income before income tax expense (4) | $ | 1,135,381 | $ | 7,235 | $ | 78,086 | $ | 11,350 | $ | 9,473 | $ | 1,241,525 | ||||||||||||||||||||||||||
Total average loans, net of unearned income | $ | 25,457,997 | $ | 3,235,943 | $ | 0 | $ | 0 | $ | 517,020 | $ | 29,210,960 | ||||||||||||||||||||||||||
Total average assets (5) (6) | 54,196,976 | 3,264,071 | 382,707 | 380,290 | 2,990,088 | 61,214,132 | ||||||||||||||||||||||||||||||||
Total average deposits | 51,352,644 | 1,461,170 | 0 | 0 | 517,530 | 53,331,344 |
(Dollars in thousands) | Global Commercial Bank (1) | SVB Private Bank | SVB Capital (1) | SVB Leerink (1) | Other Items (2) | Total | ||||||||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||
Net interest income (loss) | $ | 484,969 | $ | 18,644 | $ | 5 | $ | (3 | ) | $ | 9,312 | $ | 512,927 | |||||||||||
Provision for credit losses | (43,456 | ) | (4,585 | ) | — | — | (18,440 | ) | (66,481 | ) | ||||||||||||||
Noninterest income (7) | 133,474 | 670 | 21,450 | 163,817 | 49,437 | 368,848 | ||||||||||||||||||
Noninterest expense (3) | (241,343 | ) | (10,164 | ) | (8,256 | ) | (108,650 | ) | (111,223 | ) | (479,636 | ) | ||||||||||||
Income (loss) before income tax expense (4) | $ | 333,644 | $ | 4,565 | $ | 13,199 | $ | 55,164 | $ | (70,914 | ) | $ | 335,658 | |||||||||||
Total average loans, amortized cost | $ | 30,472,414 | $ | 4,035,940 | $ | — | $ | — | $ | 2,003,805 | $ | 36,512,159 | ||||||||||||
Total average assets (5) (6) (8) | 67,936,486 | 4,071,648 | 430,272 | 454,603 | 5,538,993 | 78,432,002 | ||||||||||||||||||
Total average deposits | 65,090,982 | 2,119,983 | — | — | 705,416 | 67,916,381 | ||||||||||||||||||
Three months ended June 30, 2019 | ||||||||||||||||||||||||
Net interest income | $ | 461,752 | $ | 12,277 | $ | 6 | $ | 242 | $ | 55,126 | $ | 529,403 | ||||||||||||
Provision for credit losses | (18,295 | ) | (853 | ) | — | — | (4,798 | ) | (23,946 | ) | ||||||||||||||
Noninterest income (7) | 157,605 | 686 | 40,059 | 67,000 | 68,400 | 333,750 | ||||||||||||||||||
Noninterest expense (3) | (206,902 | ) | (9,526 | ) | (7,883 | ) | (61,935 | ) | (97,276 | ) | (383,522 | ) | ||||||||||||
Income before income tax expense (4) | $ | 394,160 | $ | 2,584 | $ | 32,182 | $ | 5,307 | $ | 21,452 | $ | 455,685 | ||||||||||||
Total average loans, amortized cost | $ | 25,724,704 | $ | 3,217,597 | $ | — | $ | — | $ | 464,319 | $ | 29,406,620 | ||||||||||||
Total average assets (5) (6) (8) | 53,965,699 | 3,247,557 | 373,167 | 410,279 | 2,703,784 | 60,700,486 | ||||||||||||||||||
Total average deposits | 51,126,806 | 1,394,905 | — | — | 440,497 | 52,962,208 | ||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||
Net interest income | $ | 948,805 | $ | 33,808 | $ | 26 | $ | 198 | $ | 54,227 | $ | 1,037,064 | ||||||||||||
Provision for credit losses | (237,867 | ) | (59,075 | ) | — | — | (13,019 | ) | (309,961 | ) | ||||||||||||||
Noninterest income (7) | 300,308 | 1,570 | 26,368 | 226,494 | 116,042 | 670,782 | ||||||||||||||||||
Noninterest expense (3) | (466,198 | ) | (20,254 | ) | (16,842 | ) | (170,687 | ) | (205,240 | ) | (879,221 | ) | ||||||||||||
Income (loss) before income tax expense (4) | $ | 545,048 | $ | (43,951 | ) | $ | 9,552 | $ | 56,005 | $ | (47,990 | ) | $ | 518,664 | ||||||||||
Total average loans, net of unearned income | $ | 29,804,949 | $ | 3,946,709 | $ | — | $ | — | $ | 1,334,786 | $ | 35,086,444 | ||||||||||||
Total average assets (5) (6) (8) | 64,870,536 | 3,982,024 | 438,737 | 469,126 | 5,659,162 | 75,419,585 | ||||||||||||||||||
Total average deposits | 62,153,426 | 2,021,323 | — | — | 687,557 | 64,862,306 | ||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||
Net interest income | $ | 907,628 | $ | 24,258 | $ | 12 | $ | 684 | $ | 109,707 | $ | 1,042,289 | ||||||||||||
(Provision for) reduction of credit losses | (45,100 | ) | 131 | — | — | (7,528 | ) | (52,497 | ) | |||||||||||||||
Noninterest income (7) | 310,465 | 1,196 | 64,904 | 135,117 | 102,444 | 614,126 | ||||||||||||||||||
Noninterest expense (3) | (404,147 | ) | (18,378 | ) | (13,665 | ) | (122,475 | ) | (190,521 | ) | (749,186 | ) | ||||||||||||
Income before income tax expense (4) | $ | 768,846 | $ | 7,207 | $ | 51,251 | $ | 13,326 | $ | 14,102 | $ | 854,732 | ||||||||||||
Total average loans, net of unearned income | $ | 25,264,010 | $ | 3,152,104 | $ | — | $ | — | $ | 484,046 | $ | 28,900,160 | ||||||||||||
Total average assets (5) (6) (8) | 52,068,609 | 3,179,064 | 375,934 | 355,609 | 3,144,018 | 59,123,234 | ||||||||||||||||||
Total average deposits | 49,371,589 | 1,442,803 | — | — | 532,788 | 51,347,180 |
62 (3)The Global Commercial Bank segment includes direct depreciation and amortization of $6.4 million and $5.1 million for the three months ended September 30, 2020 and 2019, respectively, and $17.7 million and $14.8 million for the nine months ended September 30, 2020 and 2019. (4)The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates. (5)Total average assets equal the greater of total average assets or the sum of total average liabilities and total average stockholders' equity for each segment to reconcile the results to the consolidated financial statements prepared in conformity with GAAP. (6)Included in the total average assets for SVB Leerink is goodwill of $137.8 million for the three and nine months ended September 30, 2020 and 2019. 15. Off-Balance Sheet Arrangements, Guarantees and Other Commitments |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Loan commitments available for funding: (1) | ||||||||||||||
Fixed interest rate commitments | $ | 2,474,804 | $ | 2,434,042 | ||||||||||
Variable interest rate commitments | 24,796,923 | 19,309,317 | ||||||||||||
Total loan commitments available for funding | 27,271,727 | 21,743,359 | ||||||||||||
Commercial and standby letters of credit (2) | 3,058,069 | 2,778,561 | ||||||||||||
Total unfunded credit commitments | $ | 30,329,796 | $ | 24,521,920 | ||||||||||
Commitments unavailable for funding (3) | $ | 2,519,517 | $ | 3,051,075 | ||||||||||
Allowance for unfunded credit commitments (4) | 101,515 | 67,656 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Loan commitments available for funding: (1) | ||||||||
Fixed interest rate commitments | $ | 2,298,264 | $ | 2,434,042 | ||||
Variable interest rate commitments | 22,895,069 | 19,309,317 | ||||||
Total loan commitments available for funding | 25,193,333 | 21,743,359 | ||||||
Commercial and standby letters of credit (2) | 2,933,896 | 2,778,561 | ||||||
Total unfunded credit commitments | $ | 28,127,229 | $ | 24,521,920 | ||||
Commitments unavailable for funding (3) | $ | 2,412,910 | $ | 3,051,075 | ||||
Allowance for unfunded credit commitments (4) | 99,294 | 67,656 |
(Dollars in thousands) | Expires in One Year or Less | Expires After One Year | Total Amount Outstanding | Maximum Amount of Future Payments | ||||||||||||||||||||||
Financial standby letters of credit | $ | 2,838,280 | $ | 90,452 | $ | 2,928,732 | $ | 2,928,732 | ||||||||||||||||||
Performance standby letters of credit | 109,224 | 18,057 | 127,281 | 127,281 | ||||||||||||||||||||||
Commercial letters of credit | 2,056 | 0 | 2,056 | 2,056 | ||||||||||||||||||||||
Total | $ | 2,949,560 | $ | 108,509 | $ | 3,058,069 | $ | 3,058,069 |
(Dollars in thousands) | Expires In One Year or Less | Expires After One Year | Total Amount Outstanding | Maximum Amount of Future Payments | ||||||||||||
Financial standby letters of credit | $ | 2,723,597 | $ | 80,267 | $ | 2,803,864 | $ | 2,803,864 | ||||||||
Performance standby letters of credit | 109,279 | 17,787 | 127,066 | 127,066 | ||||||||||||
Commercial letters of credit | 2,870 | 96 | 2,966 | 2,966 | ||||||||||||
Total | $ | 2,835,746 | $ | 98,150 | $ | 2,933,896 | $ | 2,933,896 |
(Dollars in thousands) | SVBFG Capital Commitments | SVBFG Unfunded Commitments | SVBFG Ownership of each Fund (3) | |||||||||||||||||
CP I, LP | $ | 6,000 | $ | 270 | 10.7 | % | ||||||||||||||
CP II, LP (1) | 1,200 | 162 | 5.1 | |||||||||||||||||
Capital Preferred Return Fund, LP | 12,688 | 0 | 20.0 | |||||||||||||||||
Growth Partners, LP | 24,670 | 1,340 | 33.0 | |||||||||||||||||
Strategic Investors Fund, LP | 15,300 | 688 | 12.6 | |||||||||||||||||
Strategic Investors Fund II, LP | 15,000 | 1,050 | 8.6 | |||||||||||||||||
Strategic Investors Fund III, LP | 15,000 | 1,275 | 5.9 | |||||||||||||||||
Strategic Investors Fund IV, LP | 12,239 | 2,325 | 5.0 | |||||||||||||||||
Strategic Investors Fund V funds | 515 | 131 | Various | |||||||||||||||||
Other venture capital and private equity fund investments (equity method accounting) | 25,197 | 6,258 | Various | |||||||||||||||||
Debt funds (equity method accounting) | 58,733 | 240 | Various | |||||||||||||||||
Other fund investments (2) | 278,339 | 5,614 | Various | |||||||||||||||||
Total | $ | 464,881 | $ | 19,353 |
(Dollars in thousands) | SVBFG Capital Commitments | SVBFG Unfunded Commitments | SVBFG Ownership of each Fund (3) | ||||||||
CP I, LP | $ | 6,000 | $ | 270 | 10.7 | % | |||||
CP II, LP (1) | 1,200 | 162 | 5.1 | ||||||||
Capital Preferred Return Fund, LP | 12,688 | — | 20.0 | ||||||||
Growth Partners, LP | 24,670 | 1,340 | 33.0 | ||||||||
Strategic Investors Fund, LP | 15,300 | 688 | 12.6 | ||||||||
Strategic Investors Fund II, LP | 15,000 | 1,050 | 8.6 | ||||||||
Strategic Investors Fund III, LP | 15,000 | 1,275 | 5.9 | ||||||||
Strategic Investors Fund IV, LP | 12,239 | 2,235 | 5.0 | ||||||||
Strategic Investors Fund V funds | 515 | 131 | Various | ||||||||
Other venture capital and private equity fund investments (equity method accounting) | 21,789 | 5,514 | Various | ||||||||
Debt funds (equity method accounting) | 58,493 | — | Various | ||||||||
Other fund investments (2) | 281,508 | 5,951 | Various | ||||||||
Total | $ | 464,402 | $ | 18,616 |
(Dollars in thousands) | Unfunded Commitments | |||
Strategic Investors Fund, LP | $ | 376 | ||
Capital Preferred Return Fund, LP | 1,517 | |||
Growth Partners, LP | 2,504 | |||
Total | $ | 4,397 |
Unfunded Commitments | ||||||||
Strategic Investors Fund, LP | $ | 376 | ||||||
Capital Preferred Return Fund, LP | 1,517 | |||||||
Growth Partners, LP | 2,513 | |||||||
Total | $ | 4,406 |
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Balance at September 30, 2020 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,547,294 | $ | 0 | $ | 0 | $ | 4,547,294 | ||||||||||||||||||
U.S. agency debentures | 0 | 152,526 | 0 | 152,526 | ||||||||||||||||||||||
Foreign government debt securities | 23,449 | 0 | 0 | 23,449 | ||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 0 | 9,770,313 | 0 | 9,770,313 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 0 | 7,315,973 | 0 | 7,315,973 | ||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 0 | 4,094,769 | 0 | 4,094,769 | ||||||||||||||||||||||
Total available-for-sale securities | 4,570,743 | 21,333,581 | 0 | 25,904,324 | ||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||
Non-marketable securities: | ||||||||||||||||||||||||||
Venture capital and private equity fund investments measured at net asset value | — | — | — | 226,526 | ||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | 0 | 0 | 134 | 134 | ||||||||||||||||||||||
Other equity securities in public companies | 26,205 | 203,092 | 0 | 229,297 | ||||||||||||||||||||||
Total non-marketable and other equity securities (fair value accounting) | 26,205 | 203,092 | 134 | 455,957 | ||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||
Foreign exchange forward and option contracts | 0 | 145,591 | 0 | 145,591 | ||||||||||||||||||||||
Equity warrant assets | 0 | 9,501 | 192,683 | 202,184 | ||||||||||||||||||||||
Client interest rate derivatives | 0 | 79,270 | 0 | 79,270 | ||||||||||||||||||||||
Total assets | $ | 4,596,948 | $ | 21,771,035 | $ | 192,817 | $ | 26,787,326 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Foreign exchange forward and option contracts | $ | 0 | $ | 112,223 | $ | 0 | $ | 112,223 | ||||||||||||||||||
Client interest rate derivatives | 0 | 25,558 | 0 | 25,558 | ||||||||||||||||||||||
Total liabilities | $ | 0 | $ | 137,781 | $ | 0 | $ | 137,781 |
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Balance at June 30, 2020 | ||||||||||||
Assets: | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. Treasury securities | $ | 4,535,235 | $ | — | $ | — | $ | 4,535,235 | ||||||||
U.S. agency debentures | — | 102,659 | — | 102,659 | ||||||||||||
Foreign government debt securities | 22,525 | — | — | 22,525 | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | — | 7,655,556 | — | 7,655,556 | ||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | — | 2,979,540 | — | 2,979,540 | ||||||||||||
Agency-issued commercial mortgage-backed securities | — | 3,156,398 | — | 3,156,398 | ||||||||||||
Total available-for-sale securities | 4,557,760 | 13,894,153 | — | 18,451,913 | ||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||
Non-marketable securities: | ||||||||||||||||
Venture capital and private equity fund investments measured at net asset value | — | — | — | 213,201 | ||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | — | — | 134 | 134 | ||||||||||||
Other equity securities in public companies | 25,233 | 20,055 | — | 45,288 | ||||||||||||
Total non-marketable and other equity securities (fair value accounting) | 25,233 | 20,055 | 134 | 258,623 | ||||||||||||
Other assets: | ||||||||||||||||
Foreign exchange forward and option contracts | — | 182,093 | — | 182,093 | ||||||||||||
Equity warrant assets | — | 5,857 | 165,225 | 171,082 | ||||||||||||
Client interest rate derivatives | — | 87,255 | — | 87,255 | ||||||||||||
Total assets | $ | 4,582,993 | $ | 14,189,413 | $ | 165,359 | $ | 19,150,966 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange forward and option contracts | $ | — | $ | 152,538 | $ | — | $ | 152,538 | ||||||||
Client interest rate derivatives | — | 28,676 | — | 28,676 | ||||||||||||
Total liabilities | $ | — | $ | 181,214 | $ | — | $ | 181,214 |
67 |
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Balance at December 31, 2019 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | 6,894,010 | $ | 0 | $ | 0 | $ | 6,894,010 | ||||||||||||||||||
U.S. agency debentures | 0 | 99,547 | 0 | 99,547 | ||||||||||||||||||||||
Foreign government debt securities | 9,038 | 0 | 0 | 9,038 | ||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 0 | 4,148,791 | 0 | 4,148,791 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 0 | 1,538,343 | 0 | 1,538,343 | ||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 0 | 1,325,190 | 0 | 1,325,190 | ||||||||||||||||||||||
Total available-for-sale securities | 6,903,048 | 7,111,871 | 0 | 14,014,919 | ||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||
Non-marketable securities: | ||||||||||||||||||||||||||
Venture capital and private equity fund investments measured at net asset value | — | — | — | 265,263 | ||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | 0 | 0 | 134 | 134 | ||||||||||||||||||||||
Other equity securities in public companies | 17,290 | 41,910 | 0 | 59,200 | ||||||||||||||||||||||
Total non-marketable and other equity securities (fair value accounting) | 17,290 | 41,910 | 134 | 324,597 | ||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||
Foreign exchange forward and option contracts | 0 | 115,854 | 0 | 115,854 | ||||||||||||||||||||||
Equity warrant assets | 0 | 4,435 | 161,038 | 165,473 | ||||||||||||||||||||||
Interest rate swaps | 0 | 22,676 | 0 | 22,676 | ||||||||||||||||||||||
Client interest rate derivatives | 0 | 28,811 | 0 | 28,811 | ||||||||||||||||||||||
Total assets | $ | 6,920,338 | $ | 7,325,557 | $ | 161,172 | $ | 14,672,330 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Foreign exchange forward and option contracts | $ | 0 | $ | 98,207 | $ | 0 | $ | 98,207 | ||||||||||||||||||
Interest rate swaps | 0 | 25,623 | 0 | 25,623 | ||||||||||||||||||||||
Client interest rate derivatives | 0 | 14,154 | 0 | 14,154 | ||||||||||||||||||||||
Total liabilities | $ | 0 | $ | 137,984 | $ | 0 | $ | 137,984 |
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Balance at December 31, 2019 | ||||||||||||
Assets: | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. Treasury securities | $ | 6,894,010 | $ | — | $ | — | $ | 6,894,010 | ||||||||
U.S. agency debentures | — | 99,547 | — | 99,547 | ||||||||||||
Foreign government debt securities | 9,038 | — | — | 9,038 | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | — | 4,148,791 | — | 4,148,791 | ||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | — | 1,538,343 | — | 1,538,343 | ||||||||||||
Agency-issued commercial mortgage-backed securities | — | 1,325,190 | — | 1,325,190 | ||||||||||||
Total available-for-sale securities | 6,903,048 | 7,111,871 | — | 14,014,919 | ||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||
Non-marketable securities: | ||||||||||||||||
Venture capital and private equity fund investments measured at net asset value | — | — | — | 265,263 | ||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | — | — | 134 | 134 | ||||||||||||
Other equity securities in public companies | 17,290 | 41,910 | — | 59,200 | ||||||||||||
Total non-marketable and other equity securities (fair value accounting) | 17,290 | 41,910 | 134 | 324,597 | ||||||||||||
Other assets: | ||||||||||||||||
Foreign exchange forward and option contracts | — | 115,854 | — | 115,854 | ||||||||||||
Equity warrant assets | — | 4,435 | 161,038 | 165,473 | ||||||||||||
Interest rate swaps | — | 22,676 | — | 22,676 | ||||||||||||
Client interest rate derivatives | — | 28,811 | — | 28,811 | ||||||||||||
Total assets | $ | 6,920,338 | $ | 7,325,557 | $ | 161,172 | $ | 14,672,330 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange forward and option contracts | $ | — | $ | 98,207 | $ | — | $ | 98,207 | ||||||||
Interest rate swaps | — | 25,623 | — | 25,623 | ||||||||||||
Client interest rate derivatives | — | 14,154 | — | 14,154 | ||||||||||||
Total liabilities | $ | — | $ | 137,984 | $ | — | $ | 137,984 |
(Dollars in thousands) | Beginning Balance | Total Net Gains Included in Net Income | Purchases | Sales/Exits | Issuances | Distributions and Other Settlements | Transfers Out of Level 3 | Ending Balance | ||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | 134 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 134 | ||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 165,225 | 52,537 | 0 | (28,760) | 4,605 | 0 | (924) | 192,683 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 165,359 | $ | 52,537 | $ | 0 | $ | (28,760) | $ | 4,605 | $ | 0 | $ | (924) | $ | 192,817 | ||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | 441 | $ | 57 | $ | 0 | $ | (364) | $ | 0 | $ | 0 | $ | 0 | $ | 134 | ||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 147,770 | 39,527 | 0 | (45,270) | 4,130 | 0 | (1,116) | 145,041 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 148,211 | $ | 39,584 | $ | 0 | $ | (45,634) | $ | 4,130 | $ | 0 | $ | (1,116) | $ | 145,175 | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | 134 | $ | 5 | $ | 0 | $ | (5) | $ | 0 | $ | 0 | $ | 0 | $ | 134 | ||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 161,038 | 91,224 | 0 | (74,110) | 15,894 | 0 | (1,363) | 192,683 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 161,172 | $ | 91,229 | $ | 0 | $ | (74,115) | $ | 15,894 | $ | 0 | $ | (1,363) | $ | 192,817 | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | 1,079 | $ | 12 | $ | 0 | $ | (960) | $ | 0 | $ | 3 | $ | 0 | $ | 134 | ||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 145,199 | 105,338 | 575 | (113,143) | 11,714 | 0 | (4,642) | 145,041 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 146,278 | $ | 105,350 | $ | 575 | $ | (114,103) | $ | 11,714 | $ | 3 | $ | (4,642) | $ | 145,175 |
(Dollars in thousands) | Beginning Balance | Total Net Gains (Losses) Included in Net Income | Purchases | Sales/Exits | Issuances | Distributions and Other Settlements | Transfers Out of Level 3 | Ending Balance | ||||||||||||||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | 134 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 134 | ||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 149,858 | 24,086 | — | (15,316 | ) | 6,770 | — | (173 | ) | 165,225 | ||||||||||||||||||||||
Total assets | $ | 149,992 | $ | 24,086 | $ | — | $ | (15,316 | ) | $ | 6,770 | $ | — | $ | (173 | ) | $ | 165,359 | ||||||||||||||
Three months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | 1,035 | $ | 2 | $ | — | $ | (596 | ) | $ | — | $ | — | $ | — | $ | 441 | |||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 156,749 | 46,645 | — | (55,568 | ) | 3,041 | — | (3,097 | ) | 147,770 | ||||||||||||||||||||||
Total assets | $ | 157,784 | $ | 46,647 | $ | — | $ | (56,164 | ) | $ | 3,041 | $ | — | $ | (3,097 | ) | $ | 148,211 | ||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | 134 | $ | 5 | $ | — | $ | (5 | ) | $ | — | $ | — | $ | — | $ | 134 | |||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 161,038 | 38,687 | — | (45,350 | ) | 11,289 | — | (439 | ) | 165,225 | ||||||||||||||||||||||
Total assets | $ | 161,172 | $ | 38,692 | $ | — | $ | (45,355 | ) | $ | 11,289 | $ | — | $ | (439 | ) | $ | 165,359 | ||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | 1,079 | $ | (45 | ) | $ | — | $ | (596 | ) | $ | — | $ | 3 | $ | — | $ | 441 | ||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 145,199 | 65,811 | 575 | (67,873 | ) | 7,584 | — | (3,526 | ) | 147,770 | ||||||||||||||||||||||
Total assets | $ | 146,278 | $ | 65,766 | $ | 575 | $ | (68,469 | ) | $ | 7,584 | $ | 3 | $ | (3,526 | ) | $ | 148,211 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Non-marketable and other equity securities (fair value accounting): | Non-marketable and other equity securities (fair value accounting): | |||||||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments not measured at net asset value (1) | $ | — | $ | 2 | $ | — | $ | (45 | ) | Venture capital and private equity fund investments not measured at net asset value (1) | $ | 0 | $ | 57 | $ | 0 | $ | 12 | ||||||||||||||||||||||||
Other assets: | Other assets: | |||||||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 11,267 | 4,416 | 7,122 | 19,188 | Equity warrant assets (2) | 26,360 | (727) | 33,469 | 21,041 | |||||||||||||||||||||||||||||||||
Total unrealized (losses) gains, net | $ | 11,267 | $ | 4,418 | $ | 7,122 | $ | 19,143 | ||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) , net | Total unrealized gains (losses) , net | $ | 26,360 | $ | (670) | $ | 33,469 | $ | 21,053 | |||||||||||||||||||||||||||||||||
Unrealized losses attributable to noncontrolling interests (1) | $ | — | $ | (1 | ) | $ | — | $ | (40 | ) | Unrealized losses attributable to noncontrolling interests (1) | $ | 0 | $ | (158) | $ | 0 | $ | (199) |
(2)Unrealized gains (losses) are recorded in the line item “Gains on equity warrant assets, net, |
(Dollars in thousands) | Fair value | Valuation Technique | Significant Unobservable Inputs | Input Range | Weighted Average | |||||||||||||||||||||||||||
September 30, 2020: | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments (fair value accounting) | $ | 134 | Private company equity pricing | (1) | (1) | (1) | ||||||||||||||||||||||||||
Equity warrant assets (public portfolio) | 1,166 | Black-Scholes option pricing model | Volatility | 45.1% - 56.8% | 51.9 | % | ||||||||||||||||||||||||||
Risk-Free interest rate | 0.3- 0.7 | 0.6 | ||||||||||||||||||||||||||||||
Sales restrictions discount (2) | 10.0 - 20.0 | 15.9 | ||||||||||||||||||||||||||||||
Equity warrant assets (private portfolio) | 191,517 | Black-Scholes option pricing model | Volatility | 23.9 - 56.8 | 43.6 | |||||||||||||||||||||||||||
Risk-Free interest rate | 0.01 - 0.69 | 0.2 | ||||||||||||||||||||||||||||||
Marketability discount (3) | 22.1 | 22.1 | ||||||||||||||||||||||||||||||
Remaining life assumption (4) | 45.0 | 45.0 | ||||||||||||||||||||||||||||||
December 31, 2019: | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments (fair value accounting) | $ | 134 | Private company equity pricing | (1) | (1) | (1) | ||||||||||||||||||||||||||
Equity warrant assets (public portfolio) | 346 | Black-Scholes option pricing model | Volatility | 39.2% - 54.8% | 50.7 | % | ||||||||||||||||||||||||||
Risk-Free interest rate | 1.9 | 1.9 | ||||||||||||||||||||||||||||||
Sales restrictions discount (2) | 10.0 - 20.0 | 13.6 | ||||||||||||||||||||||||||||||
Equity warrant assets (private portfolio) | 160,692 | Black-Scholes option pricing model | Volatility | 23.6 - 54.8 | 38.2 | |||||||||||||||||||||||||||
Risk-Free interest rate | 0.5 - 1.9 | 1.6 | ||||||||||||||||||||||||||||||
Marketability discount (3) | 17.5 | 17.5 | ||||||||||||||||||||||||||||||
Remaining life assumption (4) | 45.0 | 45.0 |
(Dollars in thousands) | Fair value | Valuation Technique | Significant Unobservable Inputs | Input Range | Weighted Average | ||||||||
June 30, 2020: | |||||||||||||
Venture capital and private equity fund investments (fair value accounting) | $ | 134 | Private company equity pricing | (1) | (1) | (1 | ) | ||||||
Equity warrant assets (public portfolio) | 1,085 | Black-Scholes option pricing model | Volatility | 56.6% | 56.6 | % | |||||||
Risk-Free interest rate | 0.7 | 0.7 | |||||||||||
Sales restrictions discount (2) | 10.0 - 20.0 | 14.4 | |||||||||||
Equity warrant assets (private portfolio) | 164,140 | Black-Scholes option pricing model | Volatility | 23.1% - 56.6% | 43.1 | ||||||||
Risk-Free interest rate | 0.01 - 0.66 | 0.2 | |||||||||||
Marketability discount (3) | 21.8 | 21.8 | |||||||||||
Remaining life assumption (4) | 45.0 | 45.0 | |||||||||||
December 31, 2019: | |||||||||||||
Venture capital and private equity fund investments (fair value accounting) | $ | 134 | Private company equity pricing | (1) | (1) | (1 | ) | ||||||
Equity warrant assets (public portfolio) | 346 | Black-Scholes option pricing model | Volatility | 39.2% - 54.8% | 50.7 | % | |||||||
Risk-Free interest rate | 1.9 | 1.9 | |||||||||||
Sales restrictions discount (2) | 10.0 - 20.0 | 13.6 | |||||||||||
Equity warrant assets (private portfolio) | 160,692 | Black-Scholes option pricing model | Volatility | 23.6% - 54.8% | 38.2 | ||||||||
Risk-Free interest rate | 0.5 - 1.9 | 1.6 | |||||||||||
Marketability discount (3) | 17.5 | 17.5 | |||||||||||
Remaining life assumption (4) | 45.0 | 45.0 |
70 companies. Additionally, we have ongoing communication with the portfolio companies and venture capital fund managers, to determine whether there is a material change in fair value. We use company provided valuation reports, if available, to support our valuation |
(2) |
(3)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. (4)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 September 30, 2020, the weighted average contractual remaining term was 6.2 years, compared to our estimated remaining life of 2.8 years. On a quarterly basis, a sensitivity analysis is performed on our remaining life assumption. |
Estimated Fair Value | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
September 30, 2020: | ||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 15,687,776 | $ | 15,687,776 | $ | 15,687,776 | $ | 0 | $ | 0 | ||||||||||||||||||||||
Held-to-maturity securities | 12,982,223 | 13,612,463 | 0 | 13,612,463 | 0 | |||||||||||||||||||||||||||
Non-marketable securities not measured at net asset value | 228,564 | 228,564 | 0 | 0 | 228,564 | |||||||||||||||||||||||||||
Non-marketable securities measured at net asset value | 293,269 | 293,269 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Net commercial loans | 33,552,513 | 34,091,696 | 0 | 0 | 34,091,696 | |||||||||||||||||||||||||||
Net consumer loans | 4,348,420 | 4,418,614 | 0 | 0 | 4,418,614 | |||||||||||||||||||||||||||
FHLB and Federal Reserve Bank stock | 61,232 | 61,232 | 0 | 0 | 61,232 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Short-term borrowings | 19,068 | 19,068 | 0 | 19,068 | 0 | |||||||||||||||||||||||||||
Non-maturity deposits (1) | 84,438,332 | 84,438,332 | 84,438,332 | 0 | 0 | |||||||||||||||||||||||||||
Time deposits | 334,687 | 273,785 | 0 | 273,785 | 0 | |||||||||||||||||||||||||||
3.50% Senior Notes | 348,257 | 378,606 | 0 | 378,606 | 0 | |||||||||||||||||||||||||||
3.125% Senior Notes | 495,173 | 557,495 | 0 | 557,495 | 0 | |||||||||||||||||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||||||||||||||||||
Commitments to extend credit | 0 | 34,126 | 0 | 0 | 34,126 | |||||||||||||||||||||||||||
December 31, 2019: | ||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 6,781,783 | $ | 6,781,783 | $ | 6,781,783 | $ | 0 | $ | 0 | ||||||||||||||||||||||
Held-to-maturity securities | 13,842,946 | 14,115,272 | 0 | 14,115,272 | 0 | |||||||||||||||||||||||||||
Non-marketable securities not measured at net asset value | 195,405 | 195,405 | 0 | 0 | 195,405 | |||||||||||||||||||||||||||
Non-marketable securities measured at net asset value | 235,351 | 235,351 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Net commercial loans | 29,104,532 | 29,615,176 | 0 | 0 | 29,615,176 | |||||||||||||||||||||||||||
Net consumer loans | 3,755,180 | 3,820,804 | 0 | 0 | 3,820,804 | |||||||||||||||||||||||||||
FHLB and Federal Reserve Bank stock | 60,258 | 60,258 | 0 | 0 | 60,258 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Short-term borrowings | 17,430 | 17,430 | 0 | 17,430 | 0 | |||||||||||||||||||||||||||
Non-maturity deposits (1) | 61,569,714 | 61,569,714 | 61,569,714 | 0 | 0 | |||||||||||||||||||||||||||
Time deposits | 188,093 | 187,980 | 0 | 187,980 | 0 | |||||||||||||||||||||||||||
3.50% Senior Notes | 347,987 | 366,856 | 0 | 366,856 | 0 | |||||||||||||||||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||||||||||||||||||
Commitments to extend credit | 0 | 27,197 | 0 | 0 | 27,197 |
Estimated Fair Value | ||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
June 30, 2020: | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 14,202,106 | $ | 14,202,106 | $ | 14,202,106 | $ | — | $ | — | ||||||||||
Held-to-maturity securities | 12,858,823 | 13,541,461 | — | 13,541,461 | — | |||||||||||||||
Non-marketable securities not measured at net asset value | 226,236 | 226,236 | — | — | 226,236 | |||||||||||||||
Non-marketable securities measured at net asset value | 252,513 | 252,513 | — | — | — | |||||||||||||||
Net commercial loans | 32,412,462 | 32,728,159 | — | — | 32,728,159 | |||||||||||||||
Net consumer loans | 3,724,932 | 3,761,539 | — | — | 3,761,539 | |||||||||||||||
FHLB and Federal Reserve Bank stock | 60,673 | 60,673 | — | — | 60,673 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Short-term borrowings | 50,924 | 50,924 | — | 50,924 | — | |||||||||||||||
Non-maturity deposits (1) | 74,128,263 | 74,128,263 | 74,128,263 | — | — | |||||||||||||||
Time deposits | 377,501 | 376,762 | — | 376,762 | — | |||||||||||||||
3.50% Senior Notes | 348,166 | 380,314 | — | 380,314 | — | |||||||||||||||
3.125% Senior Notes | 495,054 | 537,115 | — | 537,115 | — | |||||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||||||
Commitments to extend credit | — | 31,432 | — | — | 31,432 | |||||||||||||||
December 31, 2019: | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 6,781,783 | $ | 6,781,783 | $ | 6,781,783 | $ | — | $ | — | ||||||||||
Held-to-maturity securities | 13,842,946 | 14,115,272 | — | 14,115,272 | — | |||||||||||||||
Non-marketable securities not measured at net asset value | 195,405 | 195,405 | — | — | 195,405 | |||||||||||||||
Non-marketable securities measured at net asset value | 235,351 | 235,351 | — | — | — | |||||||||||||||
Net commercial loans | 29,104,532 | 29,615,176 | — | — | 29,615,176 | |||||||||||||||
Net consumer loans | 3,755,180 | 3,820,804 | — | — | 3,820,804 | |||||||||||||||
FHLB and Federal Reserve Bank stock | 60,258 | 60,258 | — | — | 60,258 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Short-term borrowings | 17,430 | 17,430 | — | 17,430 | — | |||||||||||||||
Non-maturity deposits (1) | 61,569,714 | 61,569,714 | 61,569,714 | — | — | |||||||||||||||
Time deposits | 188,093 | 187,980 | — | 187,980 | — | |||||||||||||||
3.50% Senior Notes | 347,987 | 366,856 | — | 366,856 | — | |||||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||||||
Commitments to extend credit | — | 27,197 | — | — | 27,197 |
(Dollars in thousands) | Carrying Amount | Fair Value | Unfunded Commitments | |||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||
Venture capital and private equity fund investments (1) | $ | 226,524 | $ | 226,524 | $ | 9,133 | ||||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||||||
Venture capital and private equity fund investments (2) | 274,721 | 274,721 | 11,201 | |||||||||||||||||
Debt funds (2) | 6,918 | 6,918 | 240 | |||||||||||||||||
Other investments (2) | 11,629 | 11,629 | 886 | |||||||||||||||||
Total | $ | 519,792 | $ | 519,792 | $ | 21,460 |
(Dollars in thousands) | Carrying Amount | Fair Value | Unfunded Commitments | |||||||||
Non-marketable securities (fair value accounting): | ||||||||||||
Venture capital and private equity fund investments (1) | $ | 213,201 | $ | 213,201 | $ | 9,462 | ||||||
Non-marketable securities (equity method accounting): | ||||||||||||
Venture capital and private equity fund investments (2) | 233,996 | 233,996 | 10,457 | |||||||||
Debt funds (2) | 7,004 | 7,004 | — | |||||||||
Other investments (2) | 11,513 | 11,513 | 886 | |||||||||
Total | $ | 465,714 | $ | 465,714 | $ | 20,805 |
(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. 18. Legal Matters |
•Other factors as discussed in “Risk Factors” under Part I, Item 1A in our 2019 Form 10-K and under Part II, Item 1A of this report. |
BALANCE SHEET | EARNINGS | |||||||
Assets. Loans. $ Total Client Funds. AFS/HTM Fixed Income Investments. $ | Net Income. Consolidated net income available to common stockholders of - Net interest income of banking revenue and commissions++ of ROE. Return on average equity (annualized) (“ROE”) performance of Operating Efficiency Ratio. Operating efficiency ratio of | |||||||
CAPITAL | CREDIT QUALITY | |||||||
Capital++++.Continued strong capital, with all capital ratios considered “well-capitalized” under banking regulations. SVB Financial and Bank capital ratios, respectively, were: - CET 1 risk-based capital ratio of - Tier 1 risk-based capital ratio of - Total risk-based capital ratio of - Tier 1 leverage ratio of | Credit Quality. - Allowance for credit losses for loans of - Provision for loans was a net benefit of - Net loan charge-offs of |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data, employees and ratios) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
Income Statement: | ||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 8.47 | $ | 5.15 | 64.5 | % | $ | 15.46 | $ | 16.67 | (7.3) | % | ||||||||||||||||||||||||||||||||
Net income available to common stockholders | 441,713 | 267,281 | 65.3 | 802,901 | 874,000 | (8.1) | ||||||||||||||||||||||||||||||||||||||
Net interest income | 527,740 | 520,644 | 1.4 | 1,564,804 | 1,562,933 | 0.1 | ||||||||||||||||||||||||||||||||||||||
Net interest margin | 2.53 | % | 3.34 | % | (81) | bps | 2.79 | % | 3.60 | % | (81) | bps | ||||||||||||||||||||||||||||||||
(Reduction) provision for credit losses | $ | (52,018) | $ | 36,536 | (242.4) | % | $ | 257,943 | $ | 89,033 | 189.7 | % | ||||||||||||||||||||||||||||||||
Noninterest income | 547,583 | 294,009 | 86.2 | 1,218,365 | 908,135 | 34.2 | ||||||||||||||||||||||||||||||||||||||
Noninterest expense | 491,021 | 391,324 | 25.5 | 1,370,242 | 1,140,510 | 20.1 | ||||||||||||||||||||||||||||||||||||||
Non-GAAP core fee income (1) | 146,320 | 162,177 | (9.8) | 447,303 | 473,757 | (5.6) | ||||||||||||||||||||||||||||||||||||||
Non-GAAP core fee income, plus investment banking revenue and commissions (1) | 254,758 | 212,968 | 19.6 | 777,051 | 651,574 | 19.3 | ||||||||||||||||||||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (1) | 519,721 | 279,441 | 86.0 | 1,177,972 | 871,583 | 35.2 | ||||||||||||||||||||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests (2) | 490,907 | 391,179 | 25.5 | 1,369,858 | 1,139,818 | 20.2 | ||||||||||||||||||||||||||||||||||||||
Balance Sheet: | ||||||||||||||||||||||||||||||||||||||||||||
Average available-for-sale securities | $ | 20,026,864 | $ | 10,600,449 | 88.9 | % | $ | 15,475,686 | $ | 8,572,314 | 80.5 | % | ||||||||||||||||||||||||||||||||
Average held-to-maturity securities | 12,553,196 | 14,534,505 | (13.6) | 13,054,393 | 14,891,158 | (12.3) | ||||||||||||||||||||||||||||||||||||||
Average loans, amortized cost | 37,318,600 | 29,822,426 | 25.1 | 35,835,927 | 29,210,960 | 22.7 | ||||||||||||||||||||||||||||||||||||||
Average noninterest-bearing demand deposits | 51,543,903 | 39,146,184 | 31.7 | 46,341,335 | 38,498,971 | 20.4 | ||||||||||||||||||||||||||||||||||||||
Average interest-bearing deposits | 26,136,113 | 18,088,785 | 44.5 | 22,824,729 | 14,832,373 | 53.9 | ||||||||||||||||||||||||||||||||||||||
Average total deposits | 77,680,016 | 57,234,969 | 35.7 | 69,166,064 | 53,331,344 | 29.7 | ||||||||||||||||||||||||||||||||||||||
Earnings Ratios: | ||||||||||||||||||||||||||||||||||||||||||||
Return on average assets (annualized) (3) | 1.99 | % | 1.62 | % | 22.8 | % | 1.34 | % | 1.91 | % | (29.8) | % | ||||||||||||||||||||||||||||||||
Return on average SVBFG stockholders’ equity (annualized) (4) | 24.19 | 18.27 | 32.4 | 15.56 | 21.16 | (26.5) | ||||||||||||||||||||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses for loans as a % of total period-end loans (5) | 1.34 | % | 0.97 | % | 37 | bps | 1.34 | % | 0.97 | % | 37 | bps | ||||||||||||||||||||||||||||||||
Allowance for credit losses for performing loans as a % of total performing loans (5) | 1.17 | 0.81 | 36 | 1.17 | 0.81 | 36 | ||||||||||||||||||||||||||||||||||||||
Gross loan charge-offs as a % of average total loans (annualized) (5) | 0.30 | 0.49 | (19) | 0.30 | 0.33 | (3) | ||||||||||||||||||||||||||||||||||||||
Net loan charge-offs as a % of average total loans (annualized) (5) | 0.26 | 0.44 | (18) | 0.24 | 0.26 | (2) | ||||||||||||||||||||||||||||||||||||||
Capital Ratios: | ||||||||||||||||||||||||||||||||||||||||||||
SVBFG CET 1 risk-based capital ratio | 12.31 | % | 12.71 | % | (40) | bps | 12.31 | % | 12.71 | % | (40) | bps | ||||||||||||||||||||||||||||||||
SVBFG tier 1 risk-based capital ratio | 13.25 | 12.86 | 39 | 13.25 | 12.86 | 39 | ||||||||||||||||||||||||||||||||||||||
SVBFG total risk-based capital ratio | 14.19 | 13.70 | 49 | 14.19 | 13.70 | 49 | ||||||||||||||||||||||||||||||||||||||
SVBFG tier 1 leverage ratio | 8.26 | 8.64 | (38) | 8.26 | 8.64 | (38) | ||||||||||||||||||||||||||||||||||||||
SVBFG tangible common equity to tangible assets (6) | 7.52 | 8.38 | (86) | 7.52 | 8.38 | (86) | ||||||||||||||||||||||||||||||||||||||
SVBFG tangible common equity to risk-weighted assets (6) | 13.28 | 13.04 | 24 | 13.28 | 13.04 | 24 | ||||||||||||||||||||||||||||||||||||||
Bank CET 1 risk-based capital ratio | 10.75 | 11.48 | (73) | 10.75 | 11.48 | (73) | ||||||||||||||||||||||||||||||||||||||
Bank tier 1 risk-based capital ratio | 10.75 | 11.48 | (73) | 10.75 | 11.48 | (73) | ||||||||||||||||||||||||||||||||||||||
Bank total risk-based capital ratio | 11.75 | 12.36 | (61) | 11.75 | 12.36 | (61) | ||||||||||||||||||||||||||||||||||||||
Bank tier 1 leverage ratio | 6.45 | 7.48 | (103) | 6.45 | 7.48 | (103) | ||||||||||||||||||||||||||||||||||||||
Bank tangible common equity to tangible assets (6) | 6.42 | 7.36 | (94) | 6.42 | 7.36 | (94) | ||||||||||||||||||||||||||||||||||||||
Bank tangible common equity to risk-weighted assets (6) | 11.79 | 11.82 | (3) | 11.79 | 11.82 | (3) | ||||||||||||||||||||||||||||||||||||||
Other Ratios: | ||||||||||||||||||||||||||||||||||||||||||||
Operating efficiency ratio (7) | 45.66 | % | 48.04 | % | (5.0) | % | 49.23 | % | 46.15 | % | 6.7 | % | ||||||||||||||||||||||||||||||||
Non-GAAP core operating efficiency ratio (2) | 56.86 | 48.05 | 18.3 | 53.41 | 46.09 | 15.9 | ||||||||||||||||||||||||||||||||||||||
Total costs of deposits (annualized) (8) | 0.04 | 0.38 | (89.5) | 0.10 | 0.33 | (69.7) | ||||||||||||||||||||||||||||||||||||||
Book value per common share (9) | $ | 143.91 | $ | 114.26 | 25.9 | $ | 143.91 | $ | 114.26 | 25.9 | ||||||||||||||||||||||||||||||||||
Other Statistics: | ||||||||||||||||||||||||||||||||||||||||||||
Average full-time equivalent employees | 4,216 | 3,413 | 23.5 | % | 3,914 | 3,309 | 18.3 | % | ||||||||||||||||||||||||||||||||||||
Period-end full-time equivalent employees | 4,336 | 3,460 | 25.3 | 4,336 | 3,460 | 25.3 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
(Dollars in thousands, except per share data, employees and ratios) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Income Statement: | ||||||||||||||||||||||||
Diluted earnings per share | $ | 4.42 | $ | 6.08 | (27.3 | ) | % | $ | 6.97 | $ | 11.51 | (39.4 | ) | % | ||||||||||
Net income available to common stockholders | 228,935 | 317,987 | (28.0 | ) | 361,188 | 606,719 | (40.5 | ) | ||||||||||||||||
Net interest income | 512,927 | 529,403 | (3.1 | ) | 1,037,064 | 1,042,289 | (0.5 | ) | ||||||||||||||||
Net interest margin | 2.80 | % | 3.68 | % | (88 | ) | bps | 2.95 | % | 3.74 | % | (79 | ) | bps | ||||||||||
Provision for credit losses | $ | 66,481 | $ | 23,946 | 177.6 | % | $ | 309,961 | $ | 52,497 | 490.4 | % | ||||||||||||
Noninterest income | 368,848 | 333,750 | 10.5 | 670,782 | 614,126 | 9.2 | ||||||||||||||||||
Noninterest expense | 479,636 | 383,522 | 25.1 | 879,221 | 749,186 | 17.4 | ||||||||||||||||||
Non-GAAP core fee income (1) | 132,525 | 157,337 | (15.8 | ) | 300,983 | 311,580 | (3.4 | ) | ||||||||||||||||
Non-GAAP core fee income, plus investment banking revenue and commissions (1) | 290,946 | 220,460 | 32.0 | 522,293 | 438,606 | 19.1 | ||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (1) | 354,463 | 315,014 | 12.5 | 658,251 | 592,142 | 11.2 | ||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests (2) | 479,506 | 383,354 | 25.1 | 878,951 | 748,639 | 17.4 | ||||||||||||||||||
Balance Sheet: | ||||||||||||||||||||||||
Average available-for-sale securities | $ | 12,784,271 | $ | 8,205,333 | 55.8 | % | $ | 13,175,090 | $ | 7,541,439 | 74.7 | % | ||||||||||||
Average held-to-maturity securities | 13,039,430 | 14,922,589 | (12.6 | ) | 13,307,746 | 15,072,441 | (11.7 | ) | ||||||||||||||||
Average loans, amortized cost | 36,512,159 | 29,406,620 | 24.2 | 35,086,444 | 28,900,160 | 21.4 | ||||||||||||||||||
Average noninterest-bearing demand deposits | 46,086,948 | 38,117,893 | 20.9 | 43,711,466 | 38,170,001 | 14.5 | ||||||||||||||||||
Average interest-bearing deposits | 21,829,433 | 14,844,315 | 47.1 | 21,150,840 | 13,177,179 | 60.5 | ||||||||||||||||||
Average total deposits | 67,916,381 | 52,962,208 | 28.2 | 64,862,306 | 51,347,180 | 26.3 | ||||||||||||||||||
Earnings Ratios: | ||||||||||||||||||||||||
Return on average assets (annualized) (3) | 1.17 | % | 2.10 | % | (44.3 | ) | % | 0.96 | % | 2.07 | % | (53.6 | ) | % | ||||||||||
Return on average SVBFG stockholders’ equity (annualized) (4) | 13.36 | 23.29 | (42.6 | ) | 10.84 | 22.74 | (52.3 | ) | ||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||
Allowance for credit losses for loans as a % of total period-end loans (5) | 1.61 | % | 1.03 | % | 58 | bps | 1.61 | % | 1.03 | % | 58 | bps | ||||||||||||
Allowance for credit losses for performing loans as a % of total performing loans (5) | 1.46 | 0.85 | 61 | 1.46 | 0.85 | 61 | ||||||||||||||||||
Gross loan charge-offs as a % of average total loans (annualized) (5) | 0.17 | 0.36 | (19 | ) | 0.30 | 0.25 | 5 | |||||||||||||||||
Net loan charge-offs as a % of average total loans (annualized) (5) | 0.12 | 0.23 | (11 | ) | 0.23 | 0.17 | 6 | |||||||||||||||||
Capital Ratios: | ||||||||||||||||||||||||
SVBFG CET 1 risk-based capital ratio | 12.63 | % | 12.92 | % | (29 | ) | bps | 12.63 | % | 12.92 | % | (29 | ) | bps | ||||||||||
SVBFG tier 1 risk-based capital ratio | 13.62 | 13.08 | 54 | 13.62 | 13.08 | 54 | ||||||||||||||||||
SVBFG total risk-based capital ratio | 14.77 | 13.97 | 80 | 14.77 | 13.97 | 80 | ||||||||||||||||||
SVBFG tier 1 leverage ratio | 8.68 | 8.82 | (14 | ) | 8.68 | 8.82 | (14 | ) | ||||||||||||||||
SVBFG tangible common equity to tangible assets (6) | 7.94 | 8.43 | (49 | ) | 7.94 | 8.43 | (49 | ) | ||||||||||||||||
SVBFG tangible common equity to risk-weighted assets (6) | 13.68 | 13.13 | 55 | 13.68 | 13.13 | 55 | ||||||||||||||||||
Bank CET 1 risk-based capital ratio | 11.08 | 12.50 | (142 | ) | 11.08 | 12.50 | (142 | ) | ||||||||||||||||
Bank tier 1 risk-based capital ratio | 11.08 | 12.50 | (142 | ) | 11.08 | 12.50 | (142 | ) | ||||||||||||||||
Bank total risk-based capital ratio | 12.28 | 13.44 | (116 | ) | 12.28 | 13.44 | (116 | ) | ||||||||||||||||
Bank tier 1 leverage ratio | 6.91 | 8.17 | (126 | ) | 6.91 | 8.17 | (126 | ) | ||||||||||||||||
Bank tangible common equity to tangible assets (6) | 6.91 | 7.91 | (100 | ) | 6.91 | 7.91 | (100 | ) | ||||||||||||||||
Bank tangible common equity to risk-weighted assets (6) | 12.17 | 12.72 | (55 | ) | 12.17 | 12.72 | (55 | ) | ||||||||||||||||
Other Ratios: | ||||||||||||||||||||||||
Operating efficiency ratio (7) | 54.39 | % | 44.43 | % | 22.4 | % | 51.48 | % | 45.23 | % | 13.8 | % | ||||||||||||
Non-GAAP core operating efficiency ratio (2) | 55.70 | 45.49 | 22.4 | 51.59 | 45.11 | 14.4 | ||||||||||||||||||
Total costs of deposits (annualized) (8) | 0.03 | 0.36 | (91.7 | ) | 0.13 | 0.29 | (55.2 | ) | ||||||||||||||||
Book value per common share (9) | $ | 134.89 | $ | 107.72 | 25.2 | $ | 134.89 | $ | 107.72 | 25.2 | ||||||||||||||
Other Statistics: | ||||||||||||||||||||||||
Average full-time equivalent employees | 3,855 | 3,287 | 17.3 | % | 3,764 | 3,257 | 15.6 | % | ||||||||||||||||
Period-end full-time equivalent employees | 3,984 | 3,314 | 20.2 | 3,984 | 3,314 | 20.2 |
(2)See “Results of Operations–Noninterest Expense” for a description and reconciliation of non-GAAP noninterest expense and non-GAAP core operating efficiency ratio. (3)Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average assets. (4)Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average SVBFG stockholders’ equity. (5)For the three and nine months ended September 30, 2020, the ratios are calculated using the amortized cost basis for total loans as a result of the adoption of CECL. Prior period ratios were calculated using total gross loans in accordance with previous methodology. (6)See “Capital Resources–Capital Ratios” for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets. (7)The operating efficiency ratio is calculated by dividing total noninterest expense by total net interest income plus noninterest income. (8)Ratio represents annualized total cost of deposits and is calculated by dividing interest expense from deposits by average total deposits. (9)Book value per common share is calculated by dividing total SVBFG common stockholders’ equity by total outstanding common shares at period-end. |
2020 Compared to 2019 | 2020 Compared to 2019 | |||||||||||||||||||||||||||||||||||||
Three months ended September 30, increase (decrease) due to change in | Nine months ended September 30, increase (decrease) due to change in | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 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 | $ | 1,306 | $ | (27,456) | $ | (26,150) | $ | 10,986 | $ | (62,690) | $ | (51,704) | ||||||||||||||||||||||||||
Fixed income investment portfolio (taxable) | 23,710 | (16,849) | 6,861 | 57,830 | (16,149) | 41,681 | ||||||||||||||||||||||||||||||||
Fixed income investment portfolio (non-taxable) | 5,452 | (656) | 4,796 | 13,220 | (1,562) | 11,658 | ||||||||||||||||||||||||||||||||
Loans, amortized cost | 73,886 | (99,151) | (25,265) | 206,671 | (292,478) | (85,807) | ||||||||||||||||||||||||||||||||
Increase (decrease) in interest income, net | 104,354 | (144,112) | (39,758) | 288,707 | (372,879) | (84,172) | ||||||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||||||||
Interest bearing checking and savings accounts | 2,705 | 231 | 2,936 | 3,792 | 686 | 4,478 | ||||||||||||||||||||||||||||||||
Money market deposits | 935 | (45,510) | (44,575) | 12,998 | (84,069) | (71,071) | ||||||||||||||||||||||||||||||||
Money market deposits in foreign offices | 12 | (3) | 9 | 34 | (6) | 28 | ||||||||||||||||||||||||||||||||
Time deposits | 270 | (401) | (131) | 755 | (310) | 445 | ||||||||||||||||||||||||||||||||
Sweep deposits in foreign offices | (14) | (5,113) | (5,127) | 167 | (12,900) | (12,733) | ||||||||||||||||||||||||||||||||
Total increase (decrease) in deposits expense | 3,908 | (50,796) | (46,888) | 17,746 | (96,599) | (78,853) | ||||||||||||||||||||||||||||||||
Short-term borrowings | — | (115) | (115) | 2,147 | (2,356) | (209) | ||||||||||||||||||||||||||||||||
3.125% Senior Notes | 4,012 | — | 4,012 | 5,171 | — | 5,171 | ||||||||||||||||||||||||||||||||
3.50% Senior Notes | 3 | — | 3 | 10 | — | 10 | ||||||||||||||||||||||||||||||||
5.375% Senior Notes | (4,873) | — | (4,873) | (14,611) | — | (14,611) | ||||||||||||||||||||||||||||||||
Total decrease in borrowings expense | (858) | (115) | (973) | (7,283) | (2,356) | (9,639) | ||||||||||||||||||||||||||||||||
Increase (decrease) in interest expense, net | 3,050 | (50,911) | (47,861) | 10,463 | (98,955) | (88,492) | ||||||||||||||||||||||||||||||||
Increase (decrease) in net interest income | $ | 101,304 | $ | (93,201) | $ | 8,103 | $ | 278,244 | $ | (273,924) | $ | 4,320 |
2020 Compared to 2019 | 2020 Compared to 2019 | |||||||||||||||||||||||
Three months ended June 30, increase (decrease) due to change in | Six months ended June 30, increase (decrease) due to change in | |||||||||||||||||||||||
(Dollars in thousands) | 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 | $ | 1,316 | $ | (25,278 | ) | $ | (23,962 | ) | $ | 9,730 | $ | (35,284 | ) | $ | (25,554 | ) | ||||||||
Fixed income investment portfolio (taxable) | 8,443 | (1,291 | ) | 7,152 | 33,539 | 1,281 | 34,820 | |||||||||||||||||
Fixed income investment portfolio (non-taxable) | 4,937 | (465 | ) | 4,472 | 7,742 | (881 | ) | 6,861 | ||||||||||||||||
Loans, amortized cost | 70,873 | (119,840 | ) | (48,967 | ) | 132,298 | (192,840 | ) | (60,542 | ) | ||||||||||||||
Increase (decrease) in interest income, net | 85,569 | (146,874 | ) | (61,305 | ) | 183,309 | (227,724 | ) | (44,415 | ) | ||||||||||||||
Interest expense: | ||||||||||||||||||||||||
Interest bearing checking and savings accounts | 1,302 | 248 | 1,550 | 1,109 | 433 | 1,542 | ||||||||||||||||||
Money market deposits | 992 | (38,670 | ) | (37,678 | ) | 13,917 | (40,413 | ) | (26,496 | ) | ||||||||||||||
Money market deposits in foreign offices | 11 | (1 | ) | 10 | 22 | (3 | ) | 19 | ||||||||||||||||
Time deposits | 206 | (30 | ) | 176 | 496 | 80 | 576 | |||||||||||||||||
Sweep deposits in foreign offices | 10 | (5,524 | ) | (5,514 | ) | 421 | (8,027 | ) | (7,606 | ) | ||||||||||||||
Total increase (decrease) in deposits expense | 2,521 | (43,977 | ) | (41,456 | ) | 15,965 | (47,930 | ) | (31,965 | ) | ||||||||||||||
Short-term borrowings | 410 | (1,014 | ) | (604 | ) | 2,177 | (2,270 | ) | (93 | ) | ||||||||||||||
3.125% Senior Notes | 1,159 | — | 1,159 | 1,159 | — | 1,159 | ||||||||||||||||||
3.50% Senior Notes | 3 | — | 3 | 6 | — | 6 | ||||||||||||||||||
5.375% Senior Notes | (4,870 | ) | — | (4,870 | ) | (9,738 | ) | — | (9,738 | ) | ||||||||||||||
Total decrease in borrowings expense | (3,298 | ) | (1,014 | ) | (4,312 | ) | (6,396 | ) | (2,270 | ) | (8,666 | ) | ||||||||||||
(Decrease) increase in interest expense, net | (777 | ) | (44,991 | ) | (45,768 | ) | 9,569 | (50,200 | ) | (40,631 | ) | |||||||||||||
Increase (decrease) in net interest income | $ | 86,346 | $ | (101,883 | ) | $ | (15,537 | ) | $ | 173,740 | $ | (177,524 | ) | $ | (3,784 | ) |
•Interest income for the nine months ended September 30, 2020 decreased by $84.2 million due primarily to: ◦A $85.8 million decrease in interest income on loans to $1.1 billion for the nine months ended September 30, 2020, compared to $1.2 billion for the comparable 2019 period. The decrease was reflective of a decrease in the overall loan yields of 134 basis points to 4.16 percent from 5.50 percent partially offset by an increase in average loan balances of $6.6 billion. Gross loan yields, excluding loan interest recoveries and loan fees, decreased 129 basis points to 3.66 percent from 4.95 percent, reflective primarily of the impact of the decreases in Federal Funds rates as discussed above, partially offset by an increase reflective of the impact of the reclassification of unrealized gains on interest rate swap cash flow hedges that were terminated in the first quarter of 2020 and effective loan floors, and ◦A $51.7 million decrease in interest income from our interest earning cash and short-term investment securities. The decrease was due primarily to the decrease in Federal Funds interest rates as discussed above, partially offset by growth in average balances of $5.3 billion. These decreases were offset by the following: 84 ◦A $53.3 million increase in interest income from our fixed income investment securities. The increase was due primarily to the increase of $5.1 billion in average fixed income investment securities, partially offset by declines in yields earned on these investments reflective of the lower interest rate market environment. •Interest expense for the nine months ended September 30, 2020 decreased by $88.5 million primarily due to: ◦A $78.9 million decrease in interest expense on deposits due primarily to a decrease in interest paid on our interest-bearing money market and on-balance sheet sweep deposits reflective of the decreases in market rates. These decreases were partially offset by interest income earned from $5.8 billion of growth in average balances for our interest-bearing money markets deposits. ◦A $9.6 million decrease in interest expense on borrowings due primarily to the extinguishment of our 5.375% Senior Notes, partially offset by interest expense for our 3.125% Senior Notes issued towards the end of the second quarter of 2020. |
•Our net interest margin decreased by 81 basis points to 2.53 percent |
Three months ended September 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 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) | $ | 13,817,353 | $ | 2,717 | 0.08 | % | $ | 7,193,195 | $ | 28,867 | 1.59 | % | ||||||||||||||||||||||||||
Investment securities: (2) | ||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 20,026,864 | 87,792 | 1.74 | 10,600,449 | 62,121 | 2.32 | ||||||||||||||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 10,286,332 | 68,725 | 2.66 | 12,922,438 | 87,535 | 2.69 | ||||||||||||||||||||||||||||||||
Non-taxable (3) | 2,266,864 | 18,876 | 3.31 | 1,612,067 | 14,080 | 3.47 | ||||||||||||||||||||||||||||||||
Total loans, amortized cost (4) (5) | 37,318,600 | 368,981 | 3.93 | 29,822,426 | 394,246 | 5.24 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | 83,716,013 | 547,091 | 2.60 | 62,150,575 | 586,849 | 3.74 | ||||||||||||||||||||||||||||||||
Cash and due from banks | 1,162,156 | 590,391 | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses for loans | (610,212) | (308,609) | ||||||||||||||||||||||||||||||||||||
Other assets (6) | 4,080,409 | 2,895,391 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 88,348,366 | $ | 65,327,748 | ||||||||||||||||||||||||||||||||||
Funding sources: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 4,297,874 | $ | 3,038 | 0.28 | % | $ | 470,601 | $ | 102 | 0.09 | % | ||||||||||||||||||||||||||
Money market deposits | 19,829,441 | 4,594 | 0.09 | 15,805,507 | 49,169 | 1.23 | ||||||||||||||||||||||||||||||||
Money market deposits in foreign offices | 261,903 | 21 | 0.03 | 115,590 | 12 | 0.04 | ||||||||||||||||||||||||||||||||
Time deposits | 380,560 | 459 | 0.48 | 157,218 | 590 | 1.49 | ||||||||||||||||||||||||||||||||
Sweep deposits in foreign offices | 1,366,335 | 106 | 0.03 | 1,539,869 | 5,233 | 1.35 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 26,136,113 | 8,218 | 0.13 | 18,088,785 | 55,106 | 1.21 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 15,335 | 4 | 0.10 | 22,045 | 119 | 2.14 | ||||||||||||||||||||||||||||||||
3.125% Senior Notes | 495,095 | 4,012 | 3.22 | — | — | — | ||||||||||||||||||||||||||||||||
3.50% Senior Notes | 348,197 | 3,153 | 3.60 | 347,841 | 3,150 | 3.59 | ||||||||||||||||||||||||||||||||
5.375% Senior Notes | — | — | — | 349,216 | 4,873 | 5.54 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 26,994,740 | 15,387 | 0.23 | 18,807,887 | 63,248 | 1.33 | ||||||||||||||||||||||||||||||||
Portion of noninterest-bearing funding sources | 56,721,273 | 43,342,688 | ||||||||||||||||||||||||||||||||||||
Total funding sources | 83,716,013 | 15,387 | 0.07 | 62,150,575 | 63,248 | 0.40 | ||||||||||||||||||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 51,543,903 | 39,146,184 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 2,055,599 | 1,417,659 | ||||||||||||||||||||||||||||||||||||
Preferred stock | 340,138 | — | ||||||||||||||||||||||||||||||||||||
SVBFG common stockholders’ equity | 7,265,863 | 5,802,907 | ||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 148,123 | 153,111 | ||||||||||||||||||||||||||||||||||||
Portion used to fund interest-earning assets | (56,721,273) | (43,342,688) | ||||||||||||||||||||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 88,348,366 | $ | 65,327,748 | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 531,704 | 2.53 | % | $ | 523,601 | 3.34 | % | ||||||||||||||||||||||||||||||
Total deposits | $ | 77,680,016 | $ | 57,234,969 | ||||||||||||||||||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | (3,964) | (2,957) | ||||||||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 527,740 | $ | 520,644 |
Three months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||
(Dollars in thousands) | 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) | $ | 11,919,819 | $ | 2,402 | 0.08 | % | $ | 5,405,899 | $ | 26,364 | 1.96 | % | ||||||||||
Investment securities: (2) | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||
Taxable | 12,784,271 | 69,251 | 2.18 | 8,205,333 | 45,347 | 2.22 | ||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||
Taxable | 10,886,944 | 72,296 | 2.67 | 13,350,533 | 89,048 | 2.68 | ||||||||||||||||
Non-taxable (3) | 2,152,486 | 18,308 | 3.42 | 1,572,056 | 13,836 | 3.53 | ||||||||||||||||
Total loans, amortized cost (4) (5) | 36,512,159 | 365,110 | 4.02 | 29,406,620 | 414,077 | 5.65 | ||||||||||||||||
Total interest-earning assets | 74,255,679 | 527,367 | 2.85 | 57,940,441 | 588,672 | 4.07 | ||||||||||||||||
Cash and due from banks | 894,412 | 542,345 | ||||||||||||||||||||
Allowance for credit losses for loans | (560,650 | ) | (311,709 | ) | ||||||||||||||||||
Other assets (6) | 3,842,561 | 2,529,409 | ||||||||||||||||||||
Total assets | $ | 78,432,002 | $ | 60,700,486 | ||||||||||||||||||
Funding sources: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 2,175,316 | $ | 1,650 | 0.31 | % | $ | 459,972 | $ | 100 | 0.09 | % | ||||||||||
Money market deposits | 17,530,821 | 3,571 | 0.08 | 12,669,422 | 41,249 | 1.31 | ||||||||||||||||
Money market deposits in foreign offices | 290,992 | 26 | 0.04 | 162,586 | 16 | 0.04 | ||||||||||||||||
Time deposits | 186,894 | 347 | 0.75 | 75,721 | 171 | 0.91 | ||||||||||||||||
Sweep deposits in foreign offices | 1,645,410 | 100 | 0.02 | 1,476,614 | 5,614 | 1.52 | ||||||||||||||||
Total interest-bearing deposits | 21,829,433 | 5,694 | 0.10 | 14,844,315 | 47,150 | 1.27 | ||||||||||||||||
Short-term borrowings | 618,099 | 591 | 0.38 | 188,998 | 1,195 | 2.54 | ||||||||||||||||
3.125% Senior Notes | 141,509 | 1,159 | 3.29 | — | — | — | ||||||||||||||||
3.50% Senior Notes | 348,107 | 3,152 | 3.64 | 347,755 | 3,149 | 3.63 | ||||||||||||||||
5.375% Senior Notes | — | — | — | 349,048 | 4,870 | 5.60 | ||||||||||||||||
Total interest-bearing liabilities | 22,937,148 | 10,596 | 0.19 | 15,730,116 | 56,364 | 1.44 | ||||||||||||||||
Portion of noninterest-bearing funding sources | 51,318,531 | 42,210,325 | ||||||||||||||||||||
Total funding sources | 74,255,679 | 10,596 | 0.05 | 57,940,441 | 56,364 | 0.39 | ||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||
Demand deposits | 46,086,948 | 38,117,893 | ||||||||||||||||||||
Other liabilities | 2,024,098 | 1,232,464 | ||||||||||||||||||||
Preferred stock | 340,138 | — | ||||||||||||||||||||
SVBFG common stockholders’ equity | 6,893,986 | 5,477,148 | ||||||||||||||||||||
Noncontrolling interests | 149,684 | 142,865 | ||||||||||||||||||||
Portion used to fund interest-earning assets | (51,318,531 | ) | (42,210,325 | ) | ||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 78,432,002 | $ | 60,700,486 | ||||||||||||||||||
Net interest income and margin | $ | 516,771 | 2.80 | % | $ | 532,308 | 3.68 | % | ||||||||||||||
Total deposits | $ | 67,916,381 | $ | 52,962,208 | ||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||
Adjustments for taxable equivalent basis | (3,844 | ) | (2,905 | ) | ||||||||||||||||||
Net interest income, as reported | $ | 512,927 | $ | 529,403 |
Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 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) | $ | 11,025,519 | $ | 22,743 | 0.28 | % | $ | 5,696,501 | $ | 74,447 | 1.75 | % | ||||||||||||||||||||||||||
Investment securities: (2) | ||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 15,475,686 | 234,066 | 2.02 | 8,572,314 | 142,891 | 2.23 | ||||||||||||||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 10,947,145 | 218,383 | 2.66 | 13,305,424 | 267,877 | 2.69 | ||||||||||||||||||||||||||||||||
Non-taxable (3) | 2,107,248 | 53,418 | 3.39 | 1,585,734 | 41,760 | 3.52 | ||||||||||||||||||||||||||||||||
Total loans, amortized cost (4) (5) | 35,835,927 | 1,116,660 | 4.16 | 29,210,960 | 1,202,467 | 5.50 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | 75,391,525 | 1,645,270 | 2.91 | 58,370,933 | 1,729,442 | 3.96 | ||||||||||||||||||||||||||||||||
Cash and due from banks | 952,118 | 553,523 | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses for loans | (499,962) | (303,154) | ||||||||||||||||||||||||||||||||||||
Other assets (6) | 3,916,969 | 2,592,830 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 79,760,650 | $ | 61,214,132 | ||||||||||||||||||||||||||||||||||
Funding sources: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 2,347,019 | $ | 4,796 | 0.27 | % | $ | 491,663 | $ | 318 | 0.09 | % | ||||||||||||||||||||||||||
Money market deposits | 18,330,106 | 41,178 | 0.30 | 12,540,843 | 112,249 | 1.20 | ||||||||||||||||||||||||||||||||
Money market deposits in foreign offices | 272,940 | 71 | 0.03 | 142,053 | 43 | 0.04 | ||||||||||||||||||||||||||||||||
Time deposits | 244,099 | 1,235 | 0.68 | 94,934 | 790 | 1.11 | ||||||||||||||||||||||||||||||||
Sweep deposits in foreign offices | 1,630,565 | 4,030 | 0.33 | 1,562,880 | 16,763 | 1.43 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 22,824,729 | 51,310 | 0.30 | 14,832,373 | 130,163 | 1.17 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 532,549 | 3,310 | 0.83 | 186,930 | 3,519 | 2.52 | ||||||||||||||||||||||||||||||||
3.125% Senior Notes | 213,234 | 5,171 | 3.24 | — | — | — | ||||||||||||||||||||||||||||||||
3.50% Senior Notes | 348,108 | 9,457 | 3.63 | 347,756 | 9,447 | 3.63 | ||||||||||||||||||||||||||||||||
5.375% Senior Notes | — | — | — | 349,050 | 14,611 | 5.60 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 23,918,620 | 69,248 | 0.39 | 15,716,109 | 157,740 | 1.34 | ||||||||||||||||||||||||||||||||
Portion of noninterest-bearing funding sources | 51,472,905 | 42,654,824 | ||||||||||||||||||||||||||||||||||||
Total funding sources | 75,391,525 | 69,248 | 0.12 | 58,370,933 | 157,740 | 0.36 | ||||||||||||||||||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 46,341,335 | 38,498,971 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 2,118,690 | 1,327,040 | ||||||||||||||||||||||||||||||||||||
Preferred stock | 340,148 | — | ||||||||||||||||||||||||||||||||||||
SVBFG common stockholders’ equity | 6,892,301 | 5,523,196 | ||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 149,556 | 148,816 | ||||||||||||||||||||||||||||||||||||
Portion used to fund interest-earning assets | (51,472,905) | (42,654,824) | ||||||||||||||||||||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 79,760,650 | $ | 61,214,132 | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 1,576,022 | 2.79 | % | $ | 1,571,702 | 3.60 | % | ||||||||||||||||||||||||||||||
Total deposits | $ | 69,166,064 | $ | 53,331,344 | ||||||||||||||||||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | (11,218) | (8,769) | ||||||||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 1,564,804 | $ | 1,562,933 |
Six months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||
(Dollars in thousands) | 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) | $ | 9,614,262 | $ | 20,026 | 0.42 | % | $ | 4,935,751 | $ | 45,580 | 1.86 | % | ||||||||||
Investment securities: (2) | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||
Taxable | 13,175,090 | 146,274 | 2.23 | 7,541,439 | 80,769 | 2.16 | ||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||
Taxable | 11,281,183 | 149,658 | 2.67 | 13,500,091 | 180,343 | 2.69 | ||||||||||||||||
Non-taxable (3) | 2,026,563 | 34,541 | 3.43 | 1,572,350 | 27,680 | 3.55 | ||||||||||||||||
Total loans, amortized cost (4) (5) | 35,086,444 | 747,679 | 4.29 | 28,900,160 | 808,221 | 5.64 | ||||||||||||||||
Total interest-earning assets | 71,183,542 | 1,098,178 | 3.10 | 56,449,791 | 1,142,593 | 4.08 | ||||||||||||||||
Cash and due from banks | 845,945 | 534,769 | ||||||||||||||||||||
Allowance for credit losses for loans | (444,231 | ) | (300,381 | ) | ||||||||||||||||||
Other assets (6) | 3,834,329 | 2,439,055 | ||||||||||||||||||||
Total assets | $ | 75,419,585 | $ | 59,123,234 | ||||||||||||||||||
Funding sources: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 1,360,871 | $ | 1,758 | 0.26 | % | $ | 502,369 | $ | 216 | 0.09 | % | ||||||||||
Money market deposits | 17,572,200 | 36,584 | 0.42 | 10,881,455 | 63,080 | 1.17 | ||||||||||||||||
Money market deposits in foreign offices | 278,518 | 50 | 0.04 | 155,503 | 31 | 0.04 | ||||||||||||||||
Time deposits | 175,119 | 776 | 0.89 | 63,275 | 200 | 0.64 | ||||||||||||||||
Sweep deposits in foreign offices | 1,764,132 | 3,924 | 0.45 | 1,574,577 | 11,530 | 1.48 | ||||||||||||||||
Total interest-bearing deposits | 21,150,840 | 43,092 | 0.41 | 13,177,179 | 75,057 | 1.15 | ||||||||||||||||
Short-term borrowings | 793,998 | 3,306 | 0.84 | 270,740 | 3,399 | 2.53 | ||||||||||||||||
3.125% Senior Notes | 70,755 | 1,159 | 3.29 | — | — | — | ||||||||||||||||
3.50% Senior Notes | 348,063 | 6,304 | 3.64 | 347,712 | 6,298 | 3.65 | ||||||||||||||||
5.375% Senior Notes | — | — | — | 348,966 | 9,738 | 5.63 | ||||||||||||||||
Total interest-bearing liabilities | 22,363,656 | 53,861 | 0.48 | 14,144,597 | 94,492 | 1.35 | ||||||||||||||||
Portion of noninterest-bearing funding sources | 48,819,886 | 42,305,194 | ||||||||||||||||||||
Total funding sources | 71,183,542 | 53,861 | 0.15 | 56,449,791 | 94,492 | 0.34 | ||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||
Demand deposits | 43,711,466 | 38,170,001 | ||||||||||||||||||||
Other liabilities | 2,150,563 | 1,280,981 | ||||||||||||||||||||
Preferred stock | 340,154 | — | ||||||||||||||||||||
SVBFG common stockholders’ equity | 6,703,466 | 5,381,022 | ||||||||||||||||||||
Noncontrolling interests | 150,280 | 146,633 | ||||||||||||||||||||
Portion used to fund interest-earning assets | (48,819,886 | ) | (42,305,194 | ) | ||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 75,419,585 | $ | 59,123,234 | ||||||||||||||||||
Net interest income and margin | $ | 1,044,317 | 2.95 | % | $ | 1,048,101 | 3.74 | % | ||||||||||||||
Total deposits | $ | 64,862,306 | $ | 51,347,180 | ||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||
Adjustments for taxable equivalent basis | (7,253 | ) | (5,812 | ) | ||||||||||||||||||
Net interest income, as reported | $ | 1,037,064 | $ | 1,042,289 |
(2)Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except ratios) | 2020 | 2019 | 2020 | 2019 | (Dollars in thousands, except ratios) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Allowance for credit losses for loans, beginning balance | $ | 548,963 | $ | 300,151 | $ | 304,924 | $ | 280,903 | Allowance for credit losses for loans, beginning balance | $ | 589,828 | $ | 301,888 | $ | 304,924 | $ | 280,903 | |||||||||||||||||||||||||
Day one impact of adopting ASC 326 | — | — | 25,464 | — | Day one impact of adopting ASC 326 | — | — | 25,464 | — | |||||||||||||||||||||||||||||||||
Provision for loans | 51,899 | 19,148 | 300,800 | 44,969 | ||||||||||||||||||||||||||||||||||||||
(Reduction) provision for loans | (Reduction) provision for loans | (54,106) | 35,985 | 246,694 | 80,954 | |||||||||||||||||||||||||||||||||||||
Gross loan charge-offs | (15,055 | ) | (26,435 | ) | (51,951 | ) | (35,435 | ) | Gross loan charge-offs | (28,449) | (36,820) | (80,400) | (72,255) | |||||||||||||||||||||||||||||
Loan recoveries | 4,073 | 9,820 | 11,828 | 11,245 | Loan recoveries | 4,354 | 3,888 | 16,182 | 15,133 | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (52 | ) | (796 | ) | (1,237 | ) | 206 | Foreign currency translation adjustments | 1,331 | (531) | 94 | (325) | ||||||||||||||||||||||||||||||
Allowance for credit losses for loans, ending balance | $ | 589,828 | $ | 301,888 | $ | 589,828 | $ | 301,888 | Allowance for credit losses for loans, ending balance | $ | 512,958 | $ | 304,410 | $ | 512,958 | $ | 304,410 | |||||||||||||||||||||||||
Allowance for credit losses for unfunded credit commitments, beginning balance | 84,690 | 57,970 | 67,656 | 55,183 | Allowance for credit losses for unfunded credit commitments, beginning balance | 99,294 | 62,664 | 67,656 | 55,183 | |||||||||||||||||||||||||||||||||
Day one impact of adopting ASC 326 | — | — | 22,826 | — | Day one impact of adopting ASC 326 | — | — | 22,826 | — | |||||||||||||||||||||||||||||||||
Provision for unfunded credit commitments | 14,590 | 4,798 | 9,113 | 7,528 | Provision for unfunded credit commitments | 2,019 | 551 | 11,132 | 8,079 | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 14 | (104 | ) | (301 | ) | (47 | ) | Foreign currency translation adjustments | 202 | (107) | (99) | (154) | ||||||||||||||||||||||||||||||
Allowance for credit losses for unfunded credit commitments, ending balance (1) | $ | 99,294 | $ | 62,664 | $ | 99,294 | $ | 62,664 | Allowance for credit losses for unfunded credit commitments, ending balance (1) | $ | 101,515 | $ | 63,108 | $ | 101,515 | $ | 63,108 | |||||||||||||||||||||||||
Allowance for credit losses for HTM securities, beginning balance | 230 | — | — | — | Allowance for credit losses for HTM securities, beginning balance | 222 | — | — | — | |||||||||||||||||||||||||||||||||
Day one impact of adopting ASC 326 | — | — | 174 | — | Day one impact of adopting ASC 326 | — | — | 174 | — | |||||||||||||||||||||||||||||||||
(Reduction of) provision for HTM securities | (8 | ) | — | 48 | — | |||||||||||||||||||||||||||||||||||||
Provision for HTM securities | Provision for HTM securities | 69 | — | 117 | — | |||||||||||||||||||||||||||||||||||||
Allowance for credit losses for HTM securities, ending balance (2) | $ | 222 | $ | — | $ | 222 | $ | — | Allowance for credit losses for HTM securities, ending balance (2) | $ | 291 | $ | — | $ | 291 | $ | — | |||||||||||||||||||||||||
Ratios and other information: | Ratios and other information: | |||||||||||||||||||||||||||||||||||||||||
Provision for loans as a percentage of period-end total loans (annualized) (3) | 0.57 | % | 0.26 | % | 1.65 | % | 0.31 | % | ||||||||||||||||||||||||||||||||||
(Reduction) provision for loans as a percentage of period-end total loans (annualized) (3) | (Reduction) provision for loans as a percentage of period-end total loans (annualized) (3) | (0.56) | % | 0.46 | % | 0.86 | % | 0.35 | % | |||||||||||||||||||||||||||||||||
Gross loan charge-offs as a percentage of average total loans (annualized) | 0.17 | 0.36 | 0.30 | 0.25 | Gross loan charge-offs as a percentage of average total loans (annualized) | 0.30 | 0.49 | 0.30 | 0.33 | |||||||||||||||||||||||||||||||||
Net loan charge-offs as a percentage of average total loans (annualized) | 0.12 | 0.23 | 0.23 | 0.17 | Net loan charge-offs as a percentage of average total loans (annualized) | 0.26 | 0.44 | 0.24 | 0.26 | |||||||||||||||||||||||||||||||||
Allowance for credit losses for loans as a percentage of period-end total loans (3) | 1.61 | 1.03 | 1.61 | 1.03 | Allowance for credit losses for loans as a percentage of period-end total loans (3) | 1.34 | 0.97 | 1.34 | 0.97 | |||||||||||||||||||||||||||||||||
Provision for credit losses | $ | 66,481 | $ | 23,946 | $ | 309,961 | $ | 52,497 | ||||||||||||||||||||||||||||||||||
(Reduction) provision for credit losses | (Reduction) provision for credit losses | $ | (52,018) | $ | 36,536 | $ | 257,943 | $ | 89,033 | |||||||||||||||||||||||||||||||||
Period-end total loans (3) | 36,727,222 | 29,370,403 | 36,727,222 | 29,370,403 | Period-end total loans (3) | 38,413,891 | 31,229,003 | 38,413,891 | 31,229,003 | |||||||||||||||||||||||||||||||||
Average total loans (3) | 36,512,159 | 29,568,968 | 35,086,444 | 29,065,111 | Average total loans (3) | 37,318,600 | 29,979,522 | 35,835,927 | 29,373,264 | |||||||||||||||||||||||||||||||||
Allowance for loan losses for nonaccrual loans | 54,383 | 53,067 | 54,383 | 53,067 | Allowance for loan losses for nonaccrual loans | 64,479 | 53,728 | 64,479 | 53,728 | |||||||||||||||||||||||||||||||||
Nonaccrual loans | 94,326 | 96,641 | 94,326 | 96,641 | Nonaccrual loans | 105,711 | 104,045 | 105,711 | 104,045 |
(2)The "allowance for credit losses for HTM securities" is included as a component of HTM securities and presented net in our consolidated financial statements. (3)For the three and nine months ended September 30, 2020, 88 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | (Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP noninterest income | $ | 368,848 | $ | 333,750 | 10.5 | % | $ | 670,782 | $ | 614,126 | 9.2 | % | GAAP noninterest income | $ | 547,583 | $ | 294,009 | 86.2 | % | $ | 1,218,365 | $ | 908,135 | 34.2 | % | |||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 14,385 | 18,736 | (23.2 | ) | 12,531 | 21,984 | (43.0 | ) | Less: income attributable to noncontrolling interests, including carried interest allocation | 27,862 | 14,568 | 91.3 | 40,393 | 36,552 | 10.5 | |||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | $ | 354,463 | $ | 315,014 | 12.5 | $ | 658,251 | $ | 592,142 | 11.2 | Non-GAAP noninterest income, net of noncontrolling interests | $ | 519,721 | $ | 279,441 | 86.0 | $ | 1,177,972 | $ | 871,583 | 35.2 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
GAAP noninterest income | $ | 368,848 | $ | 333,750 | 10.5 | % | $ | 670,782 | $ | 614,126 | 9.2 | % | ||||||||||
Less: gains on investment securities, net | 34,868 | 47,698 | (26.9 | ) | 80,923 | 76,726 | 5.5 | |||||||||||||||
Less: gains on equity warrant assets, net | 26,506 | 48,347 | (45.2 | ) | 39,901 | 69,652 | (42.7 | ) | ||||||||||||||
Less: other noninterest income | 16,528 | 17,245 | (4.2 | ) | 27,665 | 29,142 | (5.1 | ) | ||||||||||||||
Non-GAAP core fee income plus investment banking revenue and commissions (1) | $ | 290,946 | $ | 220,460 | 32.0 | $ | 522,293 | $ | 438,606 | 19.1 | ||||||||||||
Less: investment banking revenue | 141,503 | 48,694 | 190.6 | 188,370 | 98,489 | 91.3 | ||||||||||||||||
Less: commissions | 16,918 | 14,429 | 17.2 | 32,940 | 28,537 | 15.4 | ||||||||||||||||
Non-GAAP core fee income (2) | $ | 132,525 | $ | 157,337 | (15.8 | ) | $ | 300,983 | $ | 311,580 | (3.4 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
GAAP noninterest income | $ | 547,583 | $ | 294,009 | 86.2 | % | $ | 1,218,365 | $ | 908,135 | 34.2 | % | ||||||||||||||||||||||||||
Less: gains on investment securities, net | 189,837 | 29,849 | NM | 270,760 | 106,575 | 154.1 | ||||||||||||||||||||||||||||||||
Less: gains on equity warrant assets, net | 53,766 | 37,561 | 43.1 | 93,667 | 107,213 | (12.6) | ||||||||||||||||||||||||||||||||
Less: other noninterest income | 49,222 | 13,631 | NM | 76,887 | 42,773 | 79.8 | ||||||||||||||||||||||||||||||||
Non-GAAP core fee income plus investment banking revenue and commissions (1) | $ | 254,758 | $ | 212,968 | 19.6 | $ | 777,051 | $ | 651,574 | 19.3 | ||||||||||||||||||||||||||||
Less: investment banking revenue | 92,181 | 38,516 | 139.3 | 280,551 | 137,005 | 104.8 | ||||||||||||||||||||||||||||||||
Less: commissions | 16,257 | 12,275 | 32.4 | 49,197 | 40,812 | 20.5 | ||||||||||||||||||||||||||||||||
Non-GAAP core fee income (2) | $ | 146,320 | $ | 162,177 | (9.8) | $ | 447,303 | $ | 473,757 | (5.6) |
(Dollars in thousands) | Managed Funds of Funds | Managed Direct Venture Funds | Public Equity Securities | Debt Funds | Sales of AFS Securities | Strategic and Other Investments | SVB Leerink | Total | ||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains on investment securities, net | $ | 42,885 | $ | 14,775 | $ | 108,417 | $ | 15 | $ | — | $ | 18,426 | $ | 5,319 | $ | 189,837 | ||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 19,832 | 7,492 | — | — | — | — | 461 | 27,785 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests | $ | 23,053 | $ | 7,283 | $ | 108,417 | $ | 15 | $ | — | $ | 18,426 | $ | 4,858 | $ | 162,052 | ||||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 22,223 | $ | 9,668 | $ | (11,488) | $ | 187 | $ | — | $ | 8,035 | $ | 1,224 | $ | 29,849 | ||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 9,676 | 4,138 | — | — | — | — | 826 | $ | 14,640 | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP net gains (loss) on investment securities, net of noncontrolling interests | $ | 12,547 | $ | 5,530 | $ | (11,488) | $ | 187 | $ | — | $ | 8,035 | $ | 398 | $ | 15,209 | ||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 53,768 | $ | 27,246 | $ | 112,744 | $ | (253) | $ | 61,165 | $ | 9,490 | $ | 6,600 | $ | 270,760 | ||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 26,344 | 13,741 | — | — | — | — | 493 | 40,578 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 27,424 | $ | 13,505 | $ | 112,744 | $ | (253) | $ | 61,165 | $ | 9,490 | $ | 6,107 | $ | 230,182 | ||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 60,787 | $ | 13,135 | $ | (1,408) | $ | 1,529 | $ | (3,905) | $ | 30,348 | $ | 6,089 | $ | 106,575 | ||||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 30,273 | 5,540 | — | — | — | — | 861 | 36,674 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 30,514 | $ | 7,595 | $ | (1,408) | $ | 1,529 | $ | (3,905) | $ | 30,348 | $ | 5,228 | $ | 69,901 |
(Dollars in thousands) | Managed Funds of Funds | Managed Direct Venture Funds | Public Equity Securities | Debt Funds | Sales of AFS Securities | Strategic and Other Investments | SVB Leerink | Total | ||||||||||||||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 13,347 | $ | 14,743 | $ | 8,533 | $ | 94 | $ | — | $ | (4,919 | ) | $ | 3,070 | $ | 34,868 | |||||||||||||||
Less: income (loss) attributable to noncontrolling interests, including carried interest allocation | 6,818 | 7,576 | — | — | — | — | (66 | ) | 14,328 | |||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 6,529 | $ | 7,167 | $ | 8,533 | $ | 94 | $ | — | $ | (4,919 | ) | $ | 3,136 | $ | 20,540 | |||||||||||||||
Three months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 32,335 | $ | 4,101 | $ | 444 | $ | 1,342 | $ | (275 | ) | $ | 7,311 | $ | 2,440 | $ | 47,698 | |||||||||||||||
Less: income (loss) attributable to noncontrolling interests, including carried interest allocation | 16,852 | 1,711 | — | — | — | — | 35 | $ | 18,598 | |||||||||||||||||||||||
Non-GAAP net gains (loss) on investment securities, net of noncontrolling interests | $ | 15,483 | $ | 2,390 | $ | 444 | $ | 1,342 | $ | (275 | ) | $ | 7,311 | $ | 2,405 | $ | 29,100 | |||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 10,883 | $ | 12,471 | $ | 4,327 | $ | (268 | ) | $ | 61,165 | $ | (8,936 | ) | $ | 1,281 | $ | 80,923 | ||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 6,512 | 6,249 | — | — | — | — | 32 | 12,793 | ||||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 4,371 | $ | 6,222 | $ | 4,327 | $ | (268 | ) | $ | 61,165 | $ | (8,936 | ) | $ | 1,249 | $ | 68,130 | ||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 38,564 | $ | 3,467 | $ | 10,080 | $ | 1,342 | $ | (3,905 | ) | $ | 22,313 | $ | 4,865 | $ | 76,726 | |||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 20,597 | 1,402 | — | — | — | — | 35 | 22,034 | ||||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 17,967 | $ | 2,065 | $ | 10,080 | $ | 1,342 | $ | (3,905 | ) | $ | 22,313 | $ | 4,830 | $ | 54,692 |
•Net gains of $30.2 million from warrant valuations increases, driven by valuation increases in our private company warrant portfolio, and |
•Net gains of $59.4 million from the exercise of |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Equity warrant assets (1): | ||||||||||||||||||||||||||||||||||||||
Gains on exercises, net | $ | 23,940 | $ | 30,047 | (20.3) | % | $ | 59,370 | $ | 90,357 | (34.3) | % | ||||||||||||||||||||||||||
Terminations | (361) | (481) | (24.9) | % | (1,332) | (2,931) | (54.6) | |||||||||||||||||||||||||||||||
Changes in fair value, net | 30,187 | 7,995 | NM | 35,629 | 19,787 | 80.1 | ||||||||||||||||||||||||||||||||
Total gains on equity warrant assets, net | $ | 53,766 | $ | 37,561 | 43.1 | $ | 93,667 | $ | 107,213 | (12.6) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Equity warrant assets (1): | ||||||||||||||||||||||
Gains on exercises, net | $ | 9,435 | $ | 40,226 | (76.5 | )% | $ | 32,730 | $ | 49,180 | (33.4 | )% | ||||||||||
Terminations | (439 | ) | (1,045 | ) | (58.0 | )% | (872 | ) | (1,884 | ) | (53.7 | ) | ||||||||||
Changes in fair value, net | 17,510 | 9,166 | 91.0 | 8,043 | 22,356 | (64.0 | ) | |||||||||||||||
Total gains on equity warrant assets, net | $ | 26,506 | $ | 48,347 | (45.2 | ) | $ | 39,901 | $ | 69,652 | (42.7 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Non-GAAP core fee income (1): | ||||||||||||||||||||||
Client investment fees | $ | 31,885 | $ | 45,744 | (30.3 | )% | $ | 75,278 | $ | 90,226 | (16.6 | )% | ||||||||||
Foreign exchange fees | 36,256 | 38,506 | (5.8 | ) | 83,761 | 76,554 | 9.4 | |||||||||||||||
Credit card fees | 21,288 | 28,790 | (26.1 | ) | 49,592 | 56,273 | (11.9 | ) | ||||||||||||||
Deposit service charges | 20,511 | 22,075 | (7.1 | ) | 45,100 | 43,014 | 4.8 | |||||||||||||||
Lending related fees | 11,164 | 11,213 | (0.4 | ) | 24,289 | 25,150 | (3.4 | ) | ||||||||||||||
Letters of credit and standby letters of credit fees | 11,421 | 11,009 | 3.7 | 22,963 | 20,363 | 12.8 | ||||||||||||||||
Total non-GAAP core fee income (1) | $ | 132,525 | $ | 157,337 | (15.8 | ) | $ | 300,983 | $ | 311,580 | (3.4 | ) | ||||||||||
Investment banking revenue | 141,503 | 48,694 | 190.6 | 188,370 | 98,489 | 91.3 | ||||||||||||||||
Commissions | 16,918 | 14,429 | 17.2 | 32,940 | 28,537 | 15.4 | ||||||||||||||||
Total non-GAAP core fee income plus investment banking revenue and commissions (2) | $ | 290,946 | $ | 220,460 | 32.0 | $ | 522,293 | $ | 438,606 | 19.1 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Non-GAAP core fee income (1): | ||||||||||||||||||||||||||||||||||||||
Client investment fees | $ | 31,914 | $ | 46,679 | (31.6) | % | $ | 107,192 | $ | 136,905 | (21.7) | % | ||||||||||||||||||||||||||
Foreign exchange fees | 43,881 | 40,309 | 8.9 | 127,642 | 116,863 | 9.2 | ||||||||||||||||||||||||||||||||
Credit card fees | 22,756 | 30,158 | (24.5) | 72,348 | 86,431 | (16.3) | ||||||||||||||||||||||||||||||||
Deposit service charges | 22,015 | 22,482 | (2.1) | 67,115 | 65,496 | 2.5 | ||||||||||||||||||||||||||||||||
Lending related fees | 13,562 | 11,707 | 15.8 | 37,851 | 36,857 | 2.7 | ||||||||||||||||||||||||||||||||
Letters of credit and standby letters of credit fees | 12,192 | 10,842 | 12.5 | 35,155 | 31,205 | 12.7 | ||||||||||||||||||||||||||||||||
Total non-GAAP core fee income (1) | $ | 146,320 | $ | 162,177 | (9.8) | $ | 447,303 | $ | 473,757 | (5.6) | ||||||||||||||||||||||||||||
Investment banking revenue | 92,181 | 38,516 | 139.3 | 280,551 | 137,005 | 104.8 | ||||||||||||||||||||||||||||||||
Commissions | 16,257 | 12,275 | 32.4 | 49,197 | 40,812 | 20.5 | ||||||||||||||||||||||||||||||||
Total non-GAAP core fee income plus investment banking revenue and commissions (2) | $ | 254,758 | $ | 212,968 | 19.6 | $ | 777,051 | $ | 651,574 | 19.3 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | (Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||
Client investment fees by type: | Client investment fees by type: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sweep money market fees | $ | 19,413 | $ | 26,952 | (28.0 | )% | $ | 42,462 | $ | 53,496 | (20.6 | )% | Sweep money market fees | $ | 18,155 | $ | 26,202 | (30.7) | % | $ | 60,617 | $ | 79,698 | (23.9) | % | |||||||||||||||||||||||||||||||||||
Asset management fees | 11,596 | 6,956 | 66.7 | 20,733 | 13,628 | 52.1 | Asset management fees | 12,172 | 7,256 | 67.8 | 32,905 | 20,883 | 57.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase agreement fees | 876 | 11,836 | (92.6 | ) | 12,083 | 23,102 | (47.7 | ) | Repurchase agreement fees | 1,587 | 13,221 | (88.0) | 13,670 | 36,324 | (62.4) | |||||||||||||||||||||||||||||||||||||||||||||
Total client investment fees | $ | 31,885 | $ | 45,744 | (30.3 | ) | $ | 75,278 | $ | 90,226 | (16.6 | ) | Total client investment fees | $ | 31,914 | $ | 46,679 | (31.6) | $ | 107,192 | $ | 136,905 | (21.7) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Sweep money market funds | $ | 54,495 | $ | 40,321 | 35.2 | % | $ | 48,367 | $ | 40,048 | 20.8 | % | ||||||||||||||||||||||||||
Client investment assets under management (1) | 59,338 | 42,834 | 38.5 | 53,928 | 40,969 | 31.6 | ||||||||||||||||||||||||||||||||
Repurchase agreements | 9,731 | 9,670 | 0.6 | 9,809 | 8,947 | 9.6 | ||||||||||||||||||||||||||||||||
Total average client investment funds (2) | $ | 123,564 | $ | 92,825 | 33.1 | $ | 112,104 | $ | 89,964 | 24.6 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Sweep money market funds | $ | 47,561 | $ | 40,017 | 18.9 | % | $ | 45,303 | $ | 39,911 | 13.5 | % | ||||||||||
Client investment assets under management (1) | 51,801 | 40,825 | 26.9 | 51,223 | 40,036 | 27.9 | ||||||||||||||||
Repurchase agreements | 9,898 | 8,810 | 12.3 | 9,849 | 8,586 | 14.7 | ||||||||||||||||
Total average client investment funds (2) | $ | 109,260 | $ | 89,652 | 21.9 | $ | 106,375 | $ | 88,533 | 20.2 |
(Dollars in millions) | September 30, 2020 | December 31, 2019 | % Change | |||||||||||||||||
Sweep money market funds | $ | 56,395 | $ | 43,226 | 30.5 | % | ||||||||||||||
Client investment assets under management (1) | 60,773 | 46,904 | 29.6 | |||||||||||||||||
Repurchase agreements | 9,613 | 9,062 | 6.1 | |||||||||||||||||
Total period-end client investment funds (2) | $ | 126,781 | $ | 99,192 | 27.8 |
(Dollars in millions) | June 30, 2020 | December 31, 2019 | % Change | ||||||||
Sweep money market funds | $ | 49,388 | $ | 43,226 | 14.3 | % | |||||
Client investment assets under management (1) | 56,023 | 46,904 | 19.4 | ||||||||
Repurchase agreements | 10,510 | 9,062 | 16.0 | ||||||||
Total period-end client investment funds (2) | $ | 115,921 | $ | 99,192 | 16.9 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Foreign exchange fees by instrument type: | ||||||||||||||||||||||||||||||||||||||
Spot contract commissions | $ | 38,794 | $ | 36,836 | 5.3 | % | $ | 112,821 | $ | 106,561 | 5.9 | % | ||||||||||||||||||||||||||
Forward contract commissions | 4,613 | 3,371 | 36.8 | 14,004 | 10,144 | 38.1 | ||||||||||||||||||||||||||||||||
Option premium fees | 474 | 102 | NM | 817 | 158 | NM | ||||||||||||||||||||||||||||||||
Total foreign exchange fees | $ | 43,881 | $ | 40,309 | 8.9 | $ | 127,642 | $ | 116,863 | 9.2 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Foreign exchange fees by instrument type: | ||||||||||||||||||||||
Spot contract commissions | $ | 33,093 | $ | 34,696 | (4.6 | )% | $ | 74,027 | $ | 69,725 | 6.2 | % | ||||||||||
Forward contract commissions | 3,052 | 3,778 | (19.2 | ) | 9,391 | 6,773 | 38.7 | |||||||||||||||
Option premium fees | 111 | 32 | NM | 343 | 56 | NM | ||||||||||||||||
Total foreign exchange fees | $ | 36,256 | $ | 38,506 | (5.8 | ) | $ | 83,761 | $ | 76,554 | 9.4 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Credit card fees by instrument type: | ||||||||||||||||||||||||||||||||||||||
Card interchange fees, net | $ | 18,168 | $ | 24,560 | (26.0) | % | $ | 55,257 | $ | 68,808 | (19.7) | % | ||||||||||||||||||||||||||
Merchant service fees | 3,670 | 3,943 | (6.9) | 13,727 | 12,763 | 7.6 | ||||||||||||||||||||||||||||||||
Card service fees | 918 | 1,655 | (44.5) | 3,364 | 4,860 | (30.8) | ||||||||||||||||||||||||||||||||
Total credit card fees | $ | 22,756 | $ | 30,158 | (24.5) | $ | 72,348 | $ | 86,431 | (16.3) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Credit card fees by instrument type: | ||||||||||||||||||||||
Card interchange fees, net | $ | 15,314 | $ | 22,855 | (33.0 | )% | $ | 37,089 | $ | 44,248 | (16.2 | )% | ||||||||||
Merchant service fees | 5,030 | 4,286 | 17.4 | 10,057 | 8,821 | 14.0 | ||||||||||||||||
Card service fees | 944 | 1,649 | (42.8 | ) | 2,446 | 3,204 | (23.7 | ) | ||||||||||||||
Total credit card fees | $ | 21,288 | $ | 28,790 | (26.1 | ) | $ | 49,592 | $ | 56,273 | (11.9 | ) |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | (Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||
Lending related fees by instrument type: | Lending related fees by instrument type: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unused commitment fees | $ | 8,324 | $ | 7,051 | 18.1 | % | $ | 16,730 | $ | 16,721 | 0.1 | % | Unused commitment fees | $ | 9,872 | $ | 8,339 | 18.4 | % | $ | 26,602 | $ | 25,060 | 6.2 | % | |||||||||||||||||||||||||||||||||||
Other | 2,840 | 4,162 | (31.8 | ) | 7,559 | 8,429 | (10.3 | ) | Other | 3,690 | 3,368 | 9.6 | 11,249 | 11,797 | (4.6) | |||||||||||||||||||||||||||||||||||||||||||||
Total lending related fees | $ | 11,164 | $ | 11,213 | (0.4 | ) | $ | 24,289 | $ | 25,150 | (3.4 | ) | Total lending related fees | $ | 13,562 | $ | 11,707 | 15.8 | $ | 37,851 | $ | 36,857 | 2.7 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||
Investment banking revenue: | |||||||||||||||||||||
Underwriting fees | $ | 131,085 | $ | 42,584 | NM | $ | 162,375 | $ | 78,356 | 107.2 | % | ||||||||||
Advisory fees | 8,922 | 5,315 | 67.9 | 24,409 | 17,588 | 38.8 | |||||||||||||||
Private placements and other | 1,496 | 795 | 88.2 | 1,586 | 2,545 | (37.7 | ) | ||||||||||||||
Total investment banking revenue | $ | 141,503 | $ | 48,694 | 190.6 | $ | 188,370 | $ | 98,489 | 91.3 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Investment banking revenue: | ||||||||||||||||||||||||||||||||||||||
Underwriting fees | $ | 85,009 | $ | 31,016 | 174.1 | $ | 247,384 | $ | 109,371 | 126.2 | % | |||||||||||||||||||||||||||
Advisory fees | 1,761 | 5,200 | (66.1) | 26,170 | 22,789 | 14.8 | ||||||||||||||||||||||||||||||||
Private placements and other | 5,411 | 2,300 | 135.3 | 6,997 | 4,845 | 44.4 | ||||||||||||||||||||||||||||||||
Total investment banking revenue | $ | 92,181 | $ | 38,516 | 139.3 | $ | 280,551 | $ | 137,005 | 104.8 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | (Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | 319,797 | $ | 243,172 | 31.5 | % | $ | 575,383 | $ | 481,233 | 19.6 | % | Compensation and benefits | $ | 327,369 | $ | 233,840 | 40.0 | % | $ | 902,752 | $ | 715,073 | 26.2 | % | |||||||||||||||||||||||||||||||||||
Professional services | 63,828 | 40,830 | 56.3 | 102,533 | 77,816 | 31.8 | Professional services | 67,215 | 55,202 | 21.8 | 169,748 | 133,018 | 27.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment | 27,708 | 23,911 | 15.9 | 54,648 | 45,611 | 19.8 | Premises and equipment | 30,772 | 26,775 | 14.9 | 85,420 | 72,386 | 18.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Net occupancy | 18,845 | 16,687 | 12.9 | 37,191 | 32,735 | 13.6 | Net occupancy | 18,965 | 16,981 | 11.7 | 56,156 | 49,716 | 13.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Business development and travel | 2,992 | 17,022 | (82.4 | ) | 17,063 | 32,376 | (47.3 | ) | Business development and travel | 2,214 | 19,539 | (88.7) | 19,277 | 51,915 | (62.9) | |||||||||||||||||||||||||||||||||||||||||||||
FDIC and state assessments | 6,819 | 4,483 | 52.1 | 12,053 | 8,462 | 42.4 | FDIC and state assessments | 6,933 | 4,881 | 42.0 | 18,986 | 13,343 | 42.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 39,647 | 37,417 | 6.0 | 80,350 | 70,953 | 13.2 | Other | 37,553 | 34,106 | 10.1 | 117,903 | 105,059 | 12.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest expense | $ | 479,636 | $ | 383,522 | 25.1 | $ | 879,221 | $ | 749,186 | 17.4 | Total noninterest expense | $ | 491,021 | $ | 391,324 | 25.5 | $ | 1,370,242 | $ | 1,140,510 | 20.1 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
Non-GAAP core operating efficiency ratio (Dollars in thousands, except ratios) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
GAAP noninterest expense | $ | 479,636 | $ | 383,522 | 25.1 | % | $ | 879,221 | $ | 749,186 | 17.4 | % | ||||||||||
Less: expense attributable to noncontrolling interests | 130 | 168 | (22.6 | ) | 270 | 547 | (50.6 | ) | ||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests | 479,506 | 383,354 | 25.1 | 878,951 | 748,639 | 17.4 | ||||||||||||||||
Less: expense attributable to SVB Leerink | 108,650 | 61,935 | 75.4 | 170,687 | 122,475 | 39.4 | ||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests and SVB Leerink | $ | 370,856 | $ | 321,419 | 15.4 | $ | 708,264 | $ | 626,164 | 13.1 | ||||||||||||
GAAP net interest income | $ | 512,927 | $ | 529,403 | (3.1 | ) | $ | 1,037,064 | $ | 1,042,289 | (0.5 | ) | ||||||||||
Adjustments for taxable equivalent basis | 3,844 | 2,905 | 32.3 | 7,253 | 5,812 | 24.8 | ||||||||||||||||
Non-GAAP taxable equivalent net interest income | 516,771 | 532,308 | (2.9 | ) | 1,044,317 | 1,048,101 | (0.4 | ) | ||||||||||||||
Less: income attributable to noncontrolling interests | 5 | 16 | (68.8 | ) | 26 | 27 | (3.7 | ) | ||||||||||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests | 516,766 | 532,292 | (2.9 | ) | 1,044,291 | 1,048,074 | (0.4 | ) | ||||||||||||||
Less: net interest income attributable to SVB Leerink | (3 | ) | 242 | (101.2 | ) | 198 | 684 | (71.1 | ) | |||||||||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests and SVB Leerink | $ | 516,769 | $ | 532,050 | (2.9 | ) | $ | 1,044,093 | $ | 1,047,390 | (0.3 | ) | ||||||||||
GAAP noninterest income | $ | 368,848 | $ | 333,750 | 10.5 | $ | 670,782 | $ | 614,126 | 9.2 | ||||||||||||
Less: (loss) income attributable to noncontrolling interests, including carried interest allocation | 14,385 | 18,736 | (23.2 | ) | 12,531 | 21,984 | (43.0 | ) | ||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | 354,463 | 315,014 | 12.5 | 658,251 | 592,142 | 11.2 | ||||||||||||||||
Less: non-GAAP net gains on investment securities, net of noncontrolling interests | 20,540 | 29,100 | (29.4 | ) | 68,130 | 54,692 | 24.6 | |||||||||||||||
Less: net gains on equity warrant assets | 26,506 | 48,347 | (45.2 | ) | 39,901 | 69,652 | (42.7 | ) | ||||||||||||||
Less: investment banking revenue | 141,503 | 48,694 | 190.6 | 188,370 | 98,489 | 91.3 | ||||||||||||||||
Less: commissions | 16,918 | 14,429 | 17.2 | 32,940 | 28,537 | 15.4 | ||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests and net of net gains on investment securities, net gains on equity warrant assets, investment banking revenue and commissions | $ | 148,996 | $ | 174,444 | (14.6 | ) | $ | 328,910 | $ | 340,772 | (3.5 | ) | ||||||||||
GAAP total revenue | $ | 881,775 | $ | 863,153 | 2.2 | $ | 1,707,846 | $ | 1,656,415 | 3.1 | ||||||||||||
Non-GAAP taxable equivalent revenue, net of noncontrolling interests and SVB Leerink, net gains on investment securities, net gains on equity warrant assets, investment banking revenue and commissions | $ | 665,765 | $ | 706,494 | (5.8 | ) | $ | 1,373,003 | $ | 1,388,162 | (1.1 | ) | ||||||||||
Operating efficiency ratio | 54.39 | % | 44.43 | % | 22.4 | 51.48 | % | 45.23 | % | 13.8 | ||||||||||||
Non-GAAP core operating efficiency ratio (1) | 55.70 | 45.49 | 22.4 | 51.59 | 45.11 | 14.4 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
Non-GAAP core operating efficiency ratio (Dollars in thousands, except ratios) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
GAAP noninterest expense | $ | 491,021 | $ | 391,324 | 25.5 | % | $ | 1,370,242 | $ | 1,140,510 | 20.1 | % | ||||||||||||||||||||||||||
Less: expense attributable to noncontrolling interests | 114 | 145 | (21.4) | 384 | 692 | (44.5) | ||||||||||||||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests | 490,907 | 391,179 | 25.5 | 1,369,858 | 1,139,818 | 20.2 | ||||||||||||||||||||||||||||||||
Less: expense attributable to SVB Leerink | 77,567 | 55,200 | 40.5 | 248,254 | 177,675 | 39.7 | ||||||||||||||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests and SVB Leerink | $ | 413,340 | $ | 335,979 | 23.0 | $ | 1,121,604 | $ | 962,143 | 16.6 | ||||||||||||||||||||||||||||
GAAP net interest income | $ | 527,740 | $ | 520,644 | 1.4 | $ | 1,564,804 | $ | 1,562,933 | 0.1 | ||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | 3,964 | 2,957 | 34.1 | 11,218 | 8,769 | 27.9 | ||||||||||||||||||||||||||||||||
Non-GAAP taxable equivalent net interest income | 531,704 | 523,601 | 1.5 | 1,576,022 | 1,571,702 | 0.3 | ||||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests | — | 14 | (100.0) | 26 | 41 | (36.6) | ||||||||||||||||||||||||||||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests | 531,704 | 523,587 | 1.6 | 1,575,996 | 1,571,661 | 0.3 | ||||||||||||||||||||||||||||||||
Less: net interest income attributable to SVB Leerink | 175 | 277 | (36.8) | 373 | 961 | (61.2) | ||||||||||||||||||||||||||||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests and SVB Leerink | $ | 531,529 | $ | 523,310 | 1.6 | $ | 1,575,623 | $ | 1,570,700 | 0.3 | ||||||||||||||||||||||||||||
GAAP noninterest income | $ | 547,583 | $ | 294,009 | 86.2 | $ | 1,218,365 | $ | 908,135 | 34.2 | ||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 27,862 | 14,568 | 91.3 | 40,393 | 36,552 | 10.5 | ||||||||||||||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | 519,721 | 279,441 | 86.0 | 1,177,972 | 871,583 | 35.2 | ||||||||||||||||||||||||||||||||
Less: non-GAAP net gains on investment securities, net of noncontrolling interests | 162,052 | 15,209 | NM | 230,182 | 69,901 | NM | ||||||||||||||||||||||||||||||||
Less: net gains on equity warrant assets | 53,766 | 37,561 | 43.1 | 93,667 | 107,213 | (12.6) | ||||||||||||||||||||||||||||||||
Less: investment banking revenue | 92,181 | 38,516 | 139.3 | 280,551 | 137,005 | 104.8 | ||||||||||||||||||||||||||||||||
Less: commissions | 16,257 | 12,275 | 32.4 | 49,197 | 40,812 | 20.5 | ||||||||||||||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests and net of net gains on investment securities, net gains on equity warrant assets, investment banking revenue and commissions | $ | 195,465 | $ | 175,880 | 11.1 | $ | 524,375 | $ | 516,652 | 1.5 | ||||||||||||||||||||||||||||
GAAP total revenue | $ | 1,075,323 | $ | 814,653 | 32.0 | $ | 2,783,169 | $ | 2,471,068 | 12.6 | ||||||||||||||||||||||||||||
Non-GAAP taxable equivalent revenue, net of noncontrolling interests and SVB Leerink, net gains on investment securities, net gains on equity warrant assets, investment banking revenue and commissions | $ | 726,994 | $ | 699,190 | 4.0 | $ | 2,099,998 | $ | 2,087,352 | 0.6 | ||||||||||||||||||||||||||||
Operating efficiency ratio | 45.66 | % | 48.04 | % | (5.0) | 49.23 | % | 46.15 | % | 6.7 | ||||||||||||||||||||||||||||
Non-GAAP core operating efficiency ratio (1) | 56.86 | 48.05 | 18.3 | 53.41 | 46.09 | 15.9 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except employees) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Compensation and benefits: | ||||||||||||||||||||||||||||||||||||||
Salaries and wages | $ | 135,705 | $ | 109,473 | 24.0 | % | $ | 375,844 | $ | 316,472 | 18.8 | % | ||||||||||||||||||||||||||
Incentive compensation plans | 103,898 | 59,602 | 74.3 | 291,101 | 200,483 | 45.2 | ||||||||||||||||||||||||||||||||
Other employee incentives and benefits (1) | 87,766 | 64,765 | 35.5 | 235,807 | 198,118 | 19.0 | ||||||||||||||||||||||||||||||||
Total compensation and benefits | $ | 327,369 | $ | 233,840 | 40.0 | $ | 902,752 | $ | 715,073 | 26.2 | ||||||||||||||||||||||||||||
Period-end full-time equivalent employees | 4,336 | 3,460 | 25.3 | 4,336 | 3,460 | 25.3 | ||||||||||||||||||||||||||||||||
Average full-time equivalent employees | 4,216 | 3,413 | 23.5 | 3,914 | 3,309 | 18.3 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands, except employees) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Compensation and benefits: | ||||||||||||||||||||||
Salaries and wages | $ | 124,525 | $ | 105,799 | 17.7 | % | $ | 240,139 | $ | 206,999 | 16.0 | % | ||||||||||
Incentive compensation plans | 120,529 | 71,492 | 68.6 | 187,203 | 140,881 | 32.9 | ||||||||||||||||
Other employee incentives and benefits (1) | 74,743 | 65,881 | 13.5 | 148,041 | 133,353 | 11.0 | ||||||||||||||||
Total compensation and benefits | $ | 319,797 | $ | 243,172 | 31.5 | $ | 575,383 | $ | 481,233 | 19.6 | ||||||||||||
Period-end full-time equivalent employees | 3,984 | 3,314 | 20.2 | 3,984 | 3,314 | 20.2 | ||||||||||||||||
Average full-time equivalent employees | 3,855 | 3,287 | 17.3 | 3,764 | 3,257 | 15.6 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Lending and other client related processing costs | $ | 6,803 | $ | 8,763 | (22.4 | )% | $ | 15,961 | $ | 13,940 | 14.5 | % | ||||||||||
Correspondent bank fees | 3,833 | 3,569 | 7.4 | 7,819 | 7,313 | 6.9 | ||||||||||||||||
Investment banking activities | 7,768 | 3,869 | 100.8 | 10,798 | 8,054 | 34.1 | ||||||||||||||||
Trade order execution costs | 2,614 | 2,828 | (7.6 | ) | 5,359 | 5,344 | 0.3 | |||||||||||||||
Data processing services | 3,507 | 2,659 | 31.9 | 6,961 | 5,558 | 25.2 | ||||||||||||||||
Telephone | 1,889 | 2,422 | (22.0 | ) | 4,116 | 5,163 | (20.3 | ) | ||||||||||||||
Dues and publications | 910 | 860 | 5.8 | 2,040 | 2,384 | (14.4 | ) | |||||||||||||||
Postage and supplies | 723 | 678 | 6.6 | 1,579 | 1,448 | 9.0 | ||||||||||||||||
Other | 11,600 | 11,769 | (1.4 | ) | 25,717 | 21,749 | 18.2 | |||||||||||||||
Total other noninterest expense | $ | 39,647 | $ | 37,417 | 6.0 | $ | 80,350 | $ | 70,953 | 13.2 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Lending and other client related processing costs | $ | 7,194 | $ | 7,502 | (4.1) | % | $ | 23,155 | $ | 21,442 | 8.0 | % | ||||||||||||||||||||||||||
Correspondent bank fees | 3,581 | 3,657 | (2.1) | 11,400 | 10,970 | 3.9 | ||||||||||||||||||||||||||||||||
Investment banking activities | 2,835 | 1,864 | 52.1 | 13,633 | 9,918 | 37.5 | ||||||||||||||||||||||||||||||||
Trade order execution costs | 2,806 | 2,615 | 7.3 | 8,165 | 7,959 | 2.6 | ||||||||||||||||||||||||||||||||
Data processing services | 3,984 | 3,066 | 29.9 | 10,945 | 8,624 | 26.9 | ||||||||||||||||||||||||||||||||
Telephone | 2,342 | 2,466 | (5.0) | 6,458 | 7,629 | (15.3) | ||||||||||||||||||||||||||||||||
Dues and publications | 1,159 | 1,055 | 9.9 | 3,199 | 3,439 | (7.0) | ||||||||||||||||||||||||||||||||
Postage and supplies | 538 | 720 | (25.3) | 2,117 | 2,168 | (2.4) | ||||||||||||||||||||||||||||||||
Other | 13,114 | 11,161 | 17.5 | 38,831 | 32,910 | 18.0 | ||||||||||||||||||||||||||||||||
Total other noninterest expense | $ | 37,553 | $ | 34,106 | 10.1 | $ | 117,903 | $ | 105,059 | 12.2 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Net interest income (1) | $ | — | $ | (14) | (100.0) | % | $ | (26) | $ | (41) | (36.6) | % | ||||||||||||||||||||||||||
Noninterest income (1) | (8,620) | (4,910) | 75.6 | (12,033) | (19,586) | (38.6) | ||||||||||||||||||||||||||||||||
Noninterest expense (1) | 114 | 145 | (21.4) | 384 | 692 | (44.5) | ||||||||||||||||||||||||||||||||
Carried interest allocation (2) | (19,242) | (9,658) | 99.2 | (28,360) | (16,966) | 67.2 | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | $ | (27,748) | $ | (14,437) | 92.2 | $ | (40,035) | $ | (35,901) | 11.5 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Net interest income (1) | $ | (5 | ) | $ | (16 | ) | (68.8 | )% | $ | (26 | ) | $ | (27 | ) | (3.7 | )% | ||||||
Noninterest income (1) | (5,904 | ) | (12,406 | ) | (52.4 | ) | (3,413 | ) | (14,676 | ) | (76.7 | ) | ||||||||||
Noninterest expense (1) | 130 | 168 | (22.6 | ) | 270 | 547 | (50.6 | ) | ||||||||||||||
Carried interest allocation (2) | (8,481 | ) | (6,330 | ) | 34.0 | (9,118 | ) | (7,308 | ) | 24.8 | ||||||||||||
Net income attributable to noncontrolling interests | $ | (14,260 | ) | $ | (18,584 | ) | (23.3 | ) | $ | (12,287 | ) | $ | (21,464 | ) | (42.8 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Net interest income | $ | 512,963 | $ | 455,161 | 12.7 | % | $ | 1,461,768 | $ | 1,360,997 | 7.4 | % | ||||||||||||||||||||||||||
Reduction (provision for) credit losses | 37,847 | (34,075) | NM | (200,020) | (79,175) | 152.6 | ||||||||||||||||||||||||||||||||
Noninterest income | 147,594 | 161,029 | (8.3) | 447,902 | 471,492 | (5.0) | ||||||||||||||||||||||||||||||||
Noninterest expense | (258,035) | (213,786) | 20.7 | (724,233) | (617,933) | 17.2 | ||||||||||||||||||||||||||||||||
Income before income tax expense | $ | 440,369 | $ | 368,329 | 19.6 | $ | 985,417 | $ | 1,135,381 | (13.2) | ||||||||||||||||||||||||||||
Total average loans, amortized cost | $ | 30,763,715 | $ | 25,839,647 | 19.1 | $ | 30,126,870 | $ | 25,457,997 | 18.3 | ||||||||||||||||||||||||||||
Total average assets | 77,802,730 | 58,384,473 | 33.3 | 69,212,733 | 54,196,976 | 27.7 | ||||||||||||||||||||||||||||||||
Total average deposits | 74,825,725 | 55,250,154 | 35.4 | 66,408,359 | 51,352,644 | 29.3 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Net interest income | $ | 484,969 | $ | 461,752 | 5.0 | % | $ | 948,805 | $ | 907,628 | 4.5 | % | ||||||||||
Provision for credit losses | (43,456 | ) | (18,295 | ) | 137.5 | (237,867 | ) | (45,100 | ) | NM | ||||||||||||
Noninterest income | 133,474 | 157,605 | (15.3 | ) | 300,308 | 310,465 | (3.3 | ) | ||||||||||||||
Noninterest expense | (241,343 | ) | (206,902 | ) | 16.6 | (466,198 | ) | (404,147 | ) | 15.4 | ||||||||||||
Income before income tax expense | $ | 333,644 | $ | 394,160 | (15.4 | ) | $ | 545,048 | $ | 768,846 | (29.1 | ) | ||||||||||
Total average loans, amortized cost | $ | 30,472,414 | $ | 25,724,704 | 18.5 | $ | 29,804,949 | $ | 25,264,010 | 18.0 | ||||||||||||
Total average assets | 67,936,486 | 53,965,699 | 25.9 | 64,870,536 | 52,068,609 | 24.6 | ||||||||||||||||
Total average deposits | 65,090,982 | 51,126,806 | 27.3 | 62,153,426 | 49,371,589 | 25.9 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Net interest income | $ | 18,644 | $ | 12,277 | 51.9 | % | $ | 33,808 | $ | 24,258 | 39.4 | % | ||||||||||
(Provision for) reduction of credit losses | (4,585 | ) | (853 | ) | NM | (59,075 | ) | 131 | NM | |||||||||||||
Noninterest income | 670 | 686 | (2.3 | ) | 1,570 | 1,196 | 31.3 | |||||||||||||||
Noninterest expense | (10,164 | ) | (9,526 | ) | 6.7 | (20,254 | ) | (18,378 | ) | 10.2 | ||||||||||||
Income (loss) before income tax expense | $ | 4,565 | $ | 2,584 | 76.7 | $ | (43,951 | ) | $ | 7,207 | NM | |||||||||||
Total average loans, amortized cost | $ | 4,035,940 | $ | 3,217,597 | 25.4 | $ | 3,946,709 | $ | 3,152,104 | 25.2 | ||||||||||||
Total average assets | 4,071,648 | 3,247,557 | 25.4 | 3,982,024 | 3,179,064 | 25.3 | ||||||||||||||||
Total average deposits | 2,119,983 | 1,394,905 | 52.0 | 2,021,323 | 1,442,803 | 40.1 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Net interest income | $ | 19,145 | $ | 12,772 | 49.9 | % | $ | 52,952 | $ | 37,200 | 42.3 | % | ||||||||||||||||||||||||||
Reduction (provision for) credit losses | 14,881 | (1,910) | NM | (44,194) | (1,779) | NM | ||||||||||||||||||||||||||||||||
Noninterest income | 916 | 634 | 44.5 | 2,486 | 1,829 | 35.9 | ||||||||||||||||||||||||||||||||
Noninterest expense | (12,293) | (11,638) | 5.6 | (32,547) | (30,015) | 8.4 | ||||||||||||||||||||||||||||||||
Income (loss) before income tax expense | $ | 22,649 | $ | (142) | NM | $ | (21,303) | $ | 7,235 | NM | ||||||||||||||||||||||||||||
Total average loans, amortized cost | $ | 4,263,324 | $ | 3,400,889 | 25.4 | $ | 4,053,018 | $ | 3,235,943 | 25.2 | ||||||||||||||||||||||||||||
Total average assets | 4,297,011 | 3,431,313 | 25.2 | 4,087,786 | 3,264,071 | 25.2 | ||||||||||||||||||||||||||||||||
Total average deposits | 2,163,903 | 1,497,303 | 44.5 | 2,069,196 | 1,461,170 | 41.6 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Net interest income | $ | 5 | $ | 6 | (16.7 | )% | $ | 26 | $ | 12 | 116.7 | % | ||||||||||
Noninterest income | 21,450 | 40,059 | (46.5 | ) | 26,368 | 64,904 | (59.4 | ) | ||||||||||||||
Noninterest expense | (8,256 | ) | (7,883 | ) | 4.7 | (16,842 | ) | (13,665 | ) | 23.2 | ||||||||||||
Income before income tax expense | $ | 13,199 | $ | 32,182 | (59.0 | ) | $ | 9,552 | $ | 51,251 | (81.4 | ) | ||||||||||
Total average assets | $ | 430,272 | $ | 373,167 | 15.3 | $ | 438,737 | $ | 375,934 | 16.7 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||
Net interest income | $ | 2 | $ | 9 | (77.8) | % | $ | 28 | $ | 20 | 40.0 | % | ||||||||||||||||||||||||||
Noninterest income | 60,380 | 34,955 | 72.7 | 86,748 | 99,860 | (13.1) | ||||||||||||||||||||||||||||||||
Noninterest expense | (11,198) | (8,129) | 37.8 | (28,040) | (21,794) | 28.7 | ||||||||||||||||||||||||||||||||
Income before income tax expense | $ | 49,184 | $ | 26,835 | 83.3 | $ | 58,736 | $ | 78,086 | (24.8) | ||||||||||||||||||||||||||||
Total average assets | $ | 413,882 | $ | 396,031 | 4.5 | $ | 430,391 | $ | 382,707 | 12.5 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | (Dollars in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest (loss) income | $ | (3 | ) | $ | 242 | (101.2 | )% | $ | 198 | $ | 684 | (71.1 | )% | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | $ | 175 | $ | 277 | (36.8) | % | $ | 373 | $ | 961 | (61.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest income | 163,817 | 67,000 | 144.5 | 226,494 | 135,117 | 67.6 | Noninterest income | 113,651 | 52,947 | 114.7 | 340,145 | 188,064 | 80.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense | (108,650 | ) | (61,935 | ) | 75.4 | (170,687 | ) | (122,475 | ) | 39.4 | Noninterest expense | (77,567) | (55,200) | 40.5 | (248,254) | (177,675) | 39.7 | |||||||||||||||||||||||||||||||||||||||||||
Income before income tax expense | $ | 55,164 | $ | 5,307 | NM | $ | 56,005 | $ | 13,326 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income tax expense | Income (loss) before income tax expense | $ | 36,259 | $ | (1,976) | NM | $ | 92,264 | $ | 11,350 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||
Total average assets | $ | 454,603 | $ | 410,279 | 10.8 | $ | 469,126 | $ | 355,609 | 31.9 | Total average assets | $ | 605,263 | $ | 428,848 | 41.1 | $ | 514,836 | $ | 380,290 | 35.4 |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 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 | $ | 4,547,294 | 1.86 | % | $ | 60,221 | 1.57 | % | $ | 2,989,181 | 1.84 | % | $ | 1,497,892 | 1.91 | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||
U.S. agency debentures | 152,526 | 1.52 | — | — | — | — | 152,526 | 1.52 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government debt securities | 23,449 | (0.82) | 23,449 | (0.82) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 9,770,313 | 1.84 | — | — | — | — | — | — | 9,770,313 | 1.84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 7,315,973 | 1.32 | — | — | — | — | — | — | 7,315,973 | 1.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 4,094,769 | 1.80 | — | — | — | — | 1,431,547 | 1.81 | 2,663,222 | 1.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 25,904,324 | 1.69 | $ | 83,670 | 0.90 | $ | 2,989,181 | 1.84 | $ | 3,081,965 | 1.84 | $ | 19,749,508 | 1.64 |
June 30, 2020 | |||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | |||||||||||||||||||||||||||||||
(Dollars in thousands) | 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 | $ | 4,535,235 | 1.87 | % | $ | 85,518 | 1.57 | % | $ | 2,613,342 | 1.84 | % | $ | 1,836,375 | 1.94 | % | $ | — | — | % | |||||||||||||||
U.S. agency debentures | 102,659 | 2.28 | — | — | — | — | 102,659 | 2.28 | — | — | |||||||||||||||||||||||||
Foreign government debt securities | 22,525 | (0.82 | ) | 22,525 | (0.82 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 7,655,556 | 2.13 | — | — | — | — | — | — | 7,655,556 | 2.13 | |||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 2,979,540 | 1.74 | — | — | 491 | 3.26 | — | — | 2,979,049 | 1.74 | |||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 3,156,398 | 2.00 | — | — | — | — | 1,347,235 | 1.86 | 1,809,163 | 2.11 | |||||||||||||||||||||||||
Total | $ | 18,451,913 | 1.98 | $ | 108,043 | 1.07 | $ | 2,613,833 | 1.84 | $ | 3,286,269 | 1.91 | $ | 12,443,768 | 2.04 |
June 30, 2020 | September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Weighted- Average Yield | Amortized Cost | Weighted- Average Yield | Amortized Cost | Weighted- Average Yield | Amortized Cost | Weighted- Average Yield | Amortized Cost | Weighted- Average Yield | (Dollars in thousands) | Amortized Cost | Weighted- Average Yield | Amortized Cost | Weighted- Average Yield | Amortized Cost | Weighted- Average Yield | Amortized Cost | Weighted- Average Yield | Amortized Cost | Weighted- Average Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency debentures | $ | 453,280 | 2.62 | % | $ | 2,622 | 4.07 | % | $ | 142,917 | 2.52 | % | $ | 307,741 | 2.69 | % | $ | — | — | % | U.S. agency debentures | $ | 402,346 | 2.61 | % | $ | 4,675 | 3.22 | % | $ | 148,559 | 2.59 | % | $ | 249,112 | 2.67 | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 6,086,154 | 2.88 | 8,369 | 2.68 | 40,337 | 1.89 | 640,876 | 2.47 | 5,396,572 | 2.94 | Agency-issued mortgage-backed securities | 5,363,541 | 2.86 | 7,113 | 2.39 | 28,722 | 1.89 | 588,606 | 2.47 | 4,739,100 | 2.92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 1,518,848 | 1.69 | — | — | — | — | 612,478 | 1.62 | 906,370 | 1.74 | Agency-issued collateralized mortgage obligations—fixed rate | 1,909,965 | 1.50 | — | — | — | — | 551,213 | 1.62 | 1,358,752 | 1.45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 162,250 | 0.75 | — | — | — | — | — | — | 162,250 | 0.75 | Agency-issued collateralized mortgage obligations—variable rate | 147,714 | 0.74 | — | — | — | — | — | — | 147,714 | 0.74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 2,484,072 | 3.06 | — | — | — | — | 102,497 | 3.56 | 2,381,575 | 3.04 | Agency-issued commercial mortgage-backed securities | 2,229,811 | 3.08 | — | — | — | — | 102,428 | 3.56 | 2,127,383 | 3.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds and notes | 2,154,441 | 3.54 | 31,814 | 2.22 | 142,152 | 2.66 | 479,079 | 3.11 | 1,501,396 | 3.79 | Municipal bonds and notes | 2,929,137 | 3.21 | 44,340 | 2.52 | 134,029 | 2.63 | 540,308 | 3.20 | 2,210,460 | 3.26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,859,045 | 2.85 | $ | 42,805 | 2.43 | $ | 325,406 | 2.50 | $ | 2,142,671 | 2.46 | $ | 10,348,163 | 2.95 | Total | $ | 12,982,514 | 2.75 | $ | 56,128 | 2.56 | $ | 311,310 | 2.54 | $ | 2,031,667 | 2.51 | $ | 10,583,409 | 2.80 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in thousands) | 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) | $ | 74,293 | $ | 19,132 | $ | 87,180 | $ | 22,482 | ||||||||||||||||||
Unconsolidated venture capital and private equity fund investments (2) | 152,367 | 152,367 | 178,217 | 178,217 | ||||||||||||||||||||||
Other investments without a readily determinable fair value (3) | 56,008 | 56,008 | 55,255 | 55,255 | ||||||||||||||||||||||
Other equity securities in public companies (fair value accounting (4) | 229,297 | 229,151 | 59,200 | 59,056 | ||||||||||||||||||||||
Non-marketable securities (equity method accounting) (5): | ||||||||||||||||||||||||||
Venture capital and private equity fund investments | 274,721 | 161,699 | 215,367 | 131,403 | ||||||||||||||||||||||
Debt funds | 6,918 | 6,918 | 7,271 | 7,271 | ||||||||||||||||||||||
Other investments | 192,776 | 192,776 | 152,863 | 152,863 | ||||||||||||||||||||||
Investments in qualified affordable housing projects, net | 560,983 | 560,983 | 458,476 | 458,476 | ||||||||||||||||||||||
Total non-marketable and other equity securities | $ | 1,547,363 | $ | 1,379,034 | $ | 1,213,829 | $ | 1,065,023 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in thousands) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||||||||||||
Strategic Investors Fund, LP | $ | 4,646 | $ | 584 | $ | 5,729 | $ | 720 | ||||||||||||||||||
Capital Preferred Return Fund, LP | 39,246 | 8,458 | 45,341 | 9,772 | ||||||||||||||||||||||
Growth Partners, LP | 30,267 | 10,076 | 35,976 | 11,976 | ||||||||||||||||||||||
CP I, LP | 134 | 14 | 134 | 14 | ||||||||||||||||||||||
Total consolidated venture capital and private equity fund investments | $ | 74,293 | $ | 19,132 | $ | 87,180 | $ | 22,482 |
June 30, 2020 | December 31, 2019 | |||||||||||||||
(Dollars in thousands) | 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) | $ | 68,214 | $ | 17,433 | $ | 87,180 | $ | 22,482 | ||||||||
Unconsolidated venture capital and private equity fund investments (2) | 145,122 | 145,122 | 178,217 | 178,217 | ||||||||||||
Other investments without a readily determinable fair value (3) | 56,206 | 56,205 | 55,255 | 55,255 | ||||||||||||
Other equity securities in public companies (fair value accounting (4) | 45,288 | 43,493 | 59,200 | 59,056 | ||||||||||||
Non-marketable securities (equity method accounting) (5): | ||||||||||||||||
Venture capital and private equity fund investments | 233,996 | 139,628 | 215,367 | 131,403 | ||||||||||||
Debt funds | 7,004 | 7,004 | 7,271 | 7,271 | ||||||||||||
Other investments | 181,543 | 181,543 | 152,863 | 152,863 | ||||||||||||
Investments in qualified affordable housing projects, net | 533,205 | 533,205 | 458,476 | 458,476 | ||||||||||||
Total non-marketable and other equity securities | $ | 1,270,578 | $ | 1,123,633 | $ | 1,213,829 | $ | 1,065,023 |
June 30, 2020 | December 31, 2019 | |||||||||||||||
(Dollars in thousands) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||
Strategic Investors Fund, LP | $ | 4,414 | $ | 555 | $ | 5,729 | $ | 720 | ||||||||
Capital Preferred Return Fund, LP | 36,890 | 7,950 | 45,341 | 9,772 | ||||||||||||
Growth Partners, LP | 26,776 | 8,914 | 35,976 | 11,976 | ||||||||||||
CP I, LP | 134 | 14 | 134 | 14 | ||||||||||||
Total consolidated venture capital and private equity fund investments | $ | 68,214 | $ | 17,433 | $ | 87,180 | $ | 22,482 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in thousands) | 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 | $ | 3,519 | $ | 3,271 | $ | 3,612 | $ | 3,387 | ||||||||||||||||||
Strategic Investors Fund III, LP | 14,984 | 12,113 | 15,668 | 12,701 | ||||||||||||||||||||||
Strategic Investors Fund IV, LP | 25,451 | 21,399 | 27,064 | 22,780 | ||||||||||||||||||||||
Strategic Investors Fund V, LP | 52,575 | 27,602 | 46,830 | 24,586 | ||||||||||||||||||||||
CP II, LP (i) | 4,773 | 2,871 | 5,907 | 3,567 | ||||||||||||||||||||||
Other venture capital and private equity fund investments | 173,419 | 94,443 | 116,286 | 64,382 | ||||||||||||||||||||||
Total venture capital and private equity fund investments | $ | 274,721 | $ | 161,699 | $ | 215,367 | $ | 131,403 | ||||||||||||||||||
Debt funds: | ||||||||||||||||||||||||||
Gold Hill Capital 2008, LP (ii) | $ | 5,317 | $ | 5,317 | $ | 5,525 | $ | 5,525 | ||||||||||||||||||
Other debt funds | 1,601 | 1,601 | 1,746 | 1,746 | ||||||||||||||||||||||
Total debt funds | $ | 6,918 | $ | 6,918 | $ | 7,271 | $ | 7,271 | ||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||
SPD Silicon Valley Bank Co., Ltd. | $ | 107,969 | $ | 107,969 | $ | 74,190 | $ | 74,190 | ||||||||||||||||||
Other investments | 84,807 | 84,807 | 78,673 | 78,673 | ||||||||||||||||||||||
Total other investments | $ | 192,776 | $ | 192,776 | $ | 152,863 | $ | 152,863 |
June 30, 2020 | December 31, 2019 | |||||||||||||||
(Dollars in thousands) | 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 | $ | 3,083 | $ | 2,875 | $ | 3,612 | $ | 3,387 | ||||||||
Strategic Investors Fund III, LP | 14,211 | 11,518 | 15,668 | 12,701 | ||||||||||||
Strategic Investors Fund IV, LP | 24,743 | 20,842 | 27,064 | 22,780 | ||||||||||||
Strategic Investors Fund V, LP | 47,734 | 25,060 | 46,830 | 24,586 | ||||||||||||
CP II, LP (i) | 4,646 | 2,798 | 5,907 | 3,567 | ||||||||||||
Other venture capital and private equity fund investments | 139,579 | 76,535 | 116,286 | 64,382 | ||||||||||||
Total venture capital and private equity fund investments | $ | 233,996 | $ | 139,628 | $ | 215,367 | $ | 131,403 | ||||||||
Debt funds: | ||||||||||||||||
Gold Hill Capital 2008, LP (ii) | $ | 5,334 | $ | 5,334 | $ | 5,525 | $ | 5,525 | ||||||||
Other debt funds | 1,670 | 1,670 | 1,746 | 1,746 | ||||||||||||
Total debt funds | $ | 7,004 | $ | 7,004 | $ | 7,271 | $ | 7,271 | ||||||||
Other investments: | ||||||||||||||||
SPD Silicon Valley Bank Co., Ltd. | $ | 105,863 | $ | 105,863 | $ | 74,190 | $ | 74,190 | ||||||||
Other investments | 75,680 | 75,680 | 78,673 | 78,673 | ||||||||||||
Total other investments | $ | 181,543 | $ | 181,543 | $ | 152,863 | $ | 152,863 |
(ii)Our ownership includes direct ownership interest of 11.5 percent in the fund and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of 4.0 percent. |
June 30, 2020 | December 31, 2019 | |||||||||||||
(Dollars in thousands) | Amount | Percentage | Amount | Percentage | ||||||||||
Private equity/venture capital | $ | 17,901,117 | 48.7 | % | $ | 17,712,797 | 53.1 | % | ||||||
Investor dependent: | ||||||||||||||
Early stage | 1,797,576 | 4.9 | 1,653,425 | 5.0 | ||||||||||
Mid stage | 1,435,772 | 3.9 | 1,066,783 | 3.2 | ||||||||||
Later stage | 1,905,528 | 5.2 | 1,698,676 | 5.1 | ||||||||||
Total investor dependent | 5,138,876 | 14.0 | 4,418,884 | 13.3 | ||||||||||
Cash flow dependent: | ||||||||||||||
Sponsor led buyout | 2,057,439 | 5.6 | 2,203,020 | 6.6 | ||||||||||
Other | 2,787,807 | 7.6 | 2,252,847 | 6.8 | ||||||||||
Total cash flow dependent | 4,845,246 | 13.2 | 4,455,867 | 13.4 | ||||||||||
Private bank | 3,816,277 | 10.4 | 3,489,219 | 10.4 | ||||||||||
Balance sheet dependent | 1,693,071 | 4.6 | 1,297,304 | 3.9 | ||||||||||
Premium wine | 1,039,456 | 2.8 | 1,063,512 | 3.2 | ||||||||||
Other | 457,234 | 1.3 | 890,121 | 2.7 | ||||||||||
SBA loans | 1,835,945 | 5.0 | — | — | ||||||||||
Total loans (1) | $ | 36,727,222 | 100.0 | $ | 33,327,704 | 100.0 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Percentage | Amount | Percentage | ||||||||||||||||||||||
Global fund banking | $ | 19,584,518 | 51.0 | % | $ | 17,712,797 | 53.1 | % | ||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||
Early stage | 1,470,941 | 3.8 | 1,653,425 | 5.0 | ||||||||||||||||||||||
Mid stage | 1,626,794 | 4.2 | 1,066,783 | 3.2 | ||||||||||||||||||||||
Later stage | 2,013,934 | 5.3 | 1,698,676 | 5.1 | ||||||||||||||||||||||
Total investor dependent | 5,111,669 | 13.3 | 4,418,884 | 13.3 | ||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||
Sponsor led buyout | 2,062,243 | 5.4 | 2,203,020 | 6.6 | ||||||||||||||||||||||
Other | 2,600,157 | 6.8 | 2,252,847 | 6.8 | ||||||||||||||||||||||
Total cash flow dependent | 4,662,400 | 12.2 | 4,455,867 | 13.4 | ||||||||||||||||||||||
Private bank (1) | 4,424,899 | 11.5 | 3,489,219 | 10.4 | ||||||||||||||||||||||
Balance sheet dependent | 1,698,220 | 4.4 | 1,297,304 | 3.9 | ||||||||||||||||||||||
Premium wine (1) | 1,081,963 | 2.8 | 1,063,512 | 3.2 | ||||||||||||||||||||||
Other (1) | 48,206 | 0.1 | 890,121 | 2.7 | ||||||||||||||||||||||
SBA loans | 1,802,016 | 4.7 | — | — | ||||||||||||||||||||||
Total loans (2) | $ | 38,413,891 | 100.0 | $ | 33,327,704 | 100.0 |
(2)As of September 30, 2020, |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||||||||||||||||
Global fund banking | $ | 1,050,604 | $ | 1,360,678 | $ | 2,705,859 | $ | 1,983,241 | $ | 12,492,083 | $ | 19,592,465 | ||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||
Early stage | 1,988,463 | 226,895 | 84,560 | 27,738 | 34,818 | 2,362,474 | ||||||||||||||||||||||||||||||||
Mid stage | 880,423 | 542,855 | 210,759 | 197,162 | 92,895 | 1,924,094 | ||||||||||||||||||||||||||||||||
Later stage | 302,248 | 502,367 | 742,294 | 325,919 | 236,584 | 2,109,412 | ||||||||||||||||||||||||||||||||
Total investor dependent | 3,171,134 | 1,272,117 | 1,037,613 | 550,819 | 364,297 | 6,395,980 | ||||||||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 13,838 | 77,169 | 500,763 | 658,535 | 821,589 | 2,071,894 | ||||||||||||||||||||||||||||||||
Other | 426,605 | 255,151 | 620,051 | 587,133 | 1,119,861 | 3,008,801 | ||||||||||||||||||||||||||||||||
Total cash flow dependent | 440,443 | 332,320 | 1,120,814 | 1,245,668 | 1,941,450 | 5,080,695 | ||||||||||||||||||||||||||||||||
Private bank (1) | 3,398,733 | 492,804 | 297,444 | 23,651 | 213,233 | 4,425,865 | ||||||||||||||||||||||||||||||||
Balance sheet dependent | 205,838 | 370,864 | 380,100 | 209,427 | 581,967 | 1,748,196 | ||||||||||||||||||||||||||||||||
Premium wine (1) | 249,620 | 247,718 | 330,815 | 125,283 | 160,868 | 1,114,304 | ||||||||||||||||||||||||||||||||
Other (1) | 9,328 | 7,583 | 39,475 | — | — | 56,386 | ||||||||||||||||||||||||||||||||
Total loans (2) (3) | $ | 8,525,700 | $ | 4,084,084 | $ | 5,912,120 | $ | 4,138,089 | $ | 15,753,898 | $ | 38,413,891 |
June 30, 2020 | ||||||||||||||||||||||||
(Dollars in thousands) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||
Private equity/venture capital | $ | 1,069,179 | $ | 1,284,736 | $ | 2,427,604 | $ | 1,830,511 | $ | 11,297,045 | $ | 17,909,075 | ||||||||||||
Investor dependent: | ||||||||||||||||||||||||
Early stage | 2,156,040 | 321,585 | 122,008 | 29,150 | 114,919 | 2,743,702 | ||||||||||||||||||
Mid stage | 814,360 | 512,861 | 199,537 | 122,545 | 94,770 | 1,744,073 | ||||||||||||||||||
Later stage | 195,014 | 446,575 | 754,682 | 272,984 | 315,484 | 1,984,739 | ||||||||||||||||||
Total investor dependent | 3,165,414 | 1,281,021 | 1,076,227 | 424,679 | 525,173 | 6,472,514 | ||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||
Sponsor led buyout | 12,892 | 62,777 | 480,219 | 674,082 | 837,197 | 2,067,167 | ||||||||||||||||||
Other | 368,504 | 310,756 | 571,255 | 733,571 | 1,200,345 | 3,184,431 | ||||||||||||||||||
Total cash flow dependent | 381,396 | 373,533 | 1,051,474 | 1,407,653 | 2,037,542 | 5,251,598 | ||||||||||||||||||
Private bank | 3,034,081 | 405,009 | 213,509 | 51,387 | 112,527 | 3,816,513 | ||||||||||||||||||
Balance sheet dependent | 222,058 | 379,156 | 390,410 | 279,684 | 470,059 | 1,741,367 | ||||||||||||||||||
Premium wine | 254,698 | 240,736 | 329,758 | 95,536 | 146,973 | 1,067,701 | ||||||||||||||||||
Other | 158,091 | 46,590 | 138,818 | 55,143 | 69,812 | 468,454 | ||||||||||||||||||
Total loans (1) (2) | $ | 8,284,917 | $ | 4,010,781 | $ | 5,627,800 | $ | 4,144,593 | $ | 14,659,131 | $ | 36,727,222 |
113 (2)As of September 30, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed using the gross basis. (3)Included in total loans at amortized cost is approximately $1.8 billion in PPP loans. The PPP loans consist of loans across all of our risk-based segments. |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||||||||||||||||
Global fund banking | $ | 1,016,051 | $ | 1,082,201 | $ | 2,559,384 | $ | 2,029,547 | $ | 11,025,614 | $ | 17,712,797 | ||||||||||||||||||||||||||
Investor dependent: | ||||||||||||||||||||||||||||||||||||||
Early stage | 1,090,852 | 260,685 | 191,661 | 76,542 | 33,685 | 1,653,425 | ||||||||||||||||||||||||||||||||
Mid stage | 544,167 | 316,617 | 156,418 | 49,581 | — | 1,066,783 | ||||||||||||||||||||||||||||||||
Later stage | 167,500 | 348,832 | 648,382 | 304,373 | 229,589 | 1,698,676 | ||||||||||||||||||||||||||||||||
Total investor dependent | 1,802,519 | 926,134 | 996,461 | 430,496 | 263,274 | 4,418,884 | ||||||||||||||||||||||||||||||||
Cash flow dependent: | ||||||||||||||||||||||||||||||||||||||
Sponsor led buyout | 16,034 | 97,458 | 550,753 | 723,737 | 815,038 | 2,203,020 | ||||||||||||||||||||||||||||||||
Other | 206,209 | 86,929 | 465,304 | 463,073 | 1,031,332 | 2,252,847 | ||||||||||||||||||||||||||||||||
Total cash flow dependent | 222,243 | 184,387 | 1,016,057 | 1,186,810 | 1,846,370 | 4,455,867 | ||||||||||||||||||||||||||||||||
Private bank | 2,791,587 | 359,429 | 191,979 | 49,996 | 96,228 | 3,489,219 | ||||||||||||||||||||||||||||||||
Balance sheet dependent | 256,247 | 269,744 | 404,356 | 78,197 | 288,760 | 1,297,304 | ||||||||||||||||||||||||||||||||
Premium wine | 243,094 | 267,389 | 261,951 | 148,469 | 142,609 | 1,063,512 | ||||||||||||||||||||||||||||||||
Other | 526,850 | 40,511 | 106,247 | 112,764 | 103,749 | 890,121 | ||||||||||||||||||||||||||||||||
Total loans (1) | $ | 6,858,591 | $ | 3,129,795 | $ | 5,536,435 | $ | 4,036,279 | $ | 13,766,604 | $ | 33,327,704 |
December 31, 2019 | ||||||||||||||||||||||||
(Dollars in thousands) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||
Private equity/venture capital | $ | 1,016,051 | $ | 1,082,201 | $ | 2,559,384 | $ | 2,029,547 | $ | 11,025,614 | $ | 17,712,797 | ||||||||||||
Investor dependent | ||||||||||||||||||||||||
Early stage | 1,090,852 | 260,685 | 191,661 | 76,542 | 33,685 | 1,653,425 | ||||||||||||||||||
Mid stage | 544,167 | 316,617 | 156,418 | 49,581 | — | 1,066,783 | ||||||||||||||||||
Later stage | 167,500 | 348,832 | 648,382 | 304,373 | 229,589 | 1,698,676 | ||||||||||||||||||
Total investor dependent | 1,802,519 | 926,134 | 996,461 | 430,496 | 263,274 | 4,418,884 | ||||||||||||||||||
Cash flow dependent | ||||||||||||||||||||||||
Sponsor led buyout | 16,034 | 97,458 | 550,753 | 723,737 | 815,038 | 2,203,020 | ||||||||||||||||||
Other | 206,209 | 86,929 | 465,304 | 463,073 | 1,031,332 | 2,252,847 | ||||||||||||||||||
Total cash flow dependent | 222,243 | 184,387 | 1,016,057 | 1,186,810 | 1,846,370 | 4,455,867 | ||||||||||||||||||
Private bank | 2,791,587 | 359,429 | 191,979 | 49,996 | 96,228 | 3,489,219 | ||||||||||||||||||
Balance sheet dependent | 256,247 | 269,744 | 404,356 | 78,197 | 288,760 | 1,297,304 | ||||||||||||||||||
Premium wine | 243,094 | 267,389 | 261,951 | 148,469 | 142,609 | 1,063,512 | ||||||||||||||||||
Other | 526,850 | 40,511 | 106,247 | 112,764 | 103,749 | 890,121 | ||||||||||||||||||
Total loans (1) | $ | 6,858,591 | $ | 3,129,795 | $ | 5,536,435 | $ | 4,036,279 | $ | 13,766,604 | $ | 33,327,704 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | (Dollars in thousands) | September 30, 2020 | December 31, 2019 | |||||||||||||||||
Nonperforming, past due, and restructured loans: | Nonperforming, past due, and restructured loans: | |||||||||||||||||||||
Nonaccrual loans | $ | 94,326 | $ | 102,669 | Nonaccrual loans | $ | 105,711 | $ | 102,669 | |||||||||||||
Loans past due 90 days or more still accruing interest | 76 | 3,515 | Loans past due 90 days or more still accruing interest | — | 3,515 | |||||||||||||||||
Total nonperforming loans (1) | 94,402 | 106,184 | Total nonperforming loans (1) | 105,711 | 106,184 | |||||||||||||||||
OREO and other foreclosed assets | — | — | OREO and other foreclosed assets | 1,179 | — | |||||||||||||||||
Total nonperforming assets | $ | 94,402 | $ | 106,184 | Total nonperforming assets | $ | 106,890 | $ | 106,184 | |||||||||||||
Performing TDRs | $ | 56,281 | $ | 31,990 | Performing TDRs | $ | 14,163 | $ | 31,990 | |||||||||||||
Nonperforming loans as a percentage of total loans (1) | 0.26 | % | 0.32 | % | Nonperforming loans as a percentage of total loans (1) | 0.28 | % | 0.32 | % | |||||||||||||
Nonperforming assets as a percentage of total assets | 0.11 | 0.15 | Nonperforming assets as a percentage of total assets | 0.11 | 0.15 | |||||||||||||||||
Allowance for credit losses for loans | $ | 589,828 | $ | 304,924 | Allowance for credit losses for loans | $ | 512,958 | $ | 304,924 | |||||||||||||
As a percentage of total loans (1) | 1.61 | % | 0.91 | % | As a percentage of total loans (1) | 1.34 | % | 0.91 | % | |||||||||||||
As a percentage of total nonperforming loans (1) | 624.80 | 287.17 | As a percentage of total nonperforming loans (1) | 485.25 | 287.17 | |||||||||||||||||
Allowance for credit losses for nonaccrual loans | $ | 54,383 | $ | 44,859 | Allowance for credit losses for nonaccrual loans | $ | 64,479 | $ | 44,859 | |||||||||||||
As a percentage of total loans (1) | 0.15 | % | 0.13 | % | As a percentage of total loans (1) | 0.17 | % | 0.13 | % | |||||||||||||
As a percentage of total nonperforming loans (1) | 57.61 | 42.25 | As a percentage of total nonperforming loans (1) | 61.00 | 42.25 | |||||||||||||||||
Allowance for credit losses for total performing loans | $ | 535,445 | $ | 260,065 | Allowance for credit losses for total performing loans | $ | 448,479 | $ | 260,065 | |||||||||||||
As a percentage of total loans (1) | 1.46 | % | 0.78 | % | As a percentage of total loans (1) | 1.17 | % | 0.78 | % | |||||||||||||
As a percentage of total performing loans (1) | 1.46 | 0.78 | As a percentage of total performing loans (1) | 1.17 | 0.78 | |||||||||||||||||
Total loans (1) | $ | 36,727,222 | $ | 33,327,704 | Total loans (1) | $ | 38,413,891 | $ | 33,327,704 | |||||||||||||
Total performing loans (1) | 36,632,820 | 33,221,520 | Total performing loans (1) | 38,308,180 | 33,221,520 | |||||||||||||||||
Allowance for credit losses for unfunded credit commitments (2) | 99,294 | 67,656 | Allowance for credit losses for unfunded credit commitments (2) | 101,515 | 67,656 | |||||||||||||||||
As a percentage of total unfunded credit commitments | 0.35 | % | 0.28 | % | As a percentage of total unfunded credit commitments | 0.33 | % | 0.28 | % | |||||||||||||
Total unfunded credit commitments (3) | $ | 28,127,229 | $ | 24,521,920 | Total unfunded credit commitments (3) | $ | 30,329,796 | $ | 24,521,920 |
(2)The “allowance for credit losses for unfunded credit commitments” is included as a component of other liabilities and any provision is included in the “(reduction) provision for credit losses” in the statement of income. See “(Reduction) Provision for Credit Losses” for a discussion of the changes to the allowance. (3)Includes unfunded loan commitments and letters of credit. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Balance, beginning of period (1) | $ | 50,607 | $ | 133,623 | $ | 102,669 | $ | 94,142 | Balance, beginning of period (1) | $ | 94,326 | $ | 96,641 | $ | 102,669 | $ | 94,142 | |||||||||||||||||||||||||
Additions | 66,116 | 39,460 | 102,462 | 90,317 | Additions | 70,000 | 53,643 | 172,462 | 143,960 | |||||||||||||||||||||||||||||||||
Paydowns and other reductions | (17,784 | ) | (57,507 | ) | (80,461 | ) | (63,937 | ) | Paydowns and other reductions | (38,754) | (22,493) | (119,215) | (86,430) | |||||||||||||||||||||||||||||
Charge-offs | (4,613 | ) | (18,935 | ) | (30,344 | ) | (23,830 | ) | Charge-offs | (19,861) | (23,729) | (50,205) | (47,559) | |||||||||||||||||||||||||||||
Other reductions | — | — | — | (51 | ) | Other reductions | — | (17) | — | (68) | ||||||||||||||||||||||||||||||||
Balance, end of period (1) | $ | 94,326 | $ | 96,641 | $ | 94,326 | $ | 96,641 | Balance, end of period (1) | $ | 105,711 | $ | 104,045 | $ | 105,711 | $ | 104,045 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | % Change | ||||||||
Derivative assets (1) | $ | 440,430 | $ | 332,814 | 32.3 | % | |||||
Foreign exchange spot contract assets, gross | 1,205,821 | 810,275 | 48.8 | ||||||||
Accrued interest receivable | 201,274 | 216,962 | (7.2 | ) | |||||||
FHLB and Federal Reserve Bank stock | 60,673 | 60,258 | 0.7 | ||||||||
Net deferred tax assets (2) | 577 | 28,433 | (98.0 | ) | |||||||
Accounts receivable | 45,501 | 47,663 | (4.5 | ) | |||||||
Other assets | 286,714 | 248,828 | 15.2 | ||||||||
Total accrued interest receivable and other assets | $ | 2,240,990 | $ | 1,745,233 | 28.4 |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | % Change | |||||||||||||||||
Derivative assets (1) | $ | 427,044 | $ | 332,814 | 28.3 | % | ||||||||||||||
Foreign exchange spot contract assets, gross | 1,243,419 | 810,275 | 53.5 | |||||||||||||||||
Accrued interest receivable | 203,633 | 216,962 | (6.1) | |||||||||||||||||
FHLB and Federal Reserve Bank stock | 61,232 | 60,258 | 1.6 | |||||||||||||||||
Net deferred tax assets (2) | 347 | 28,433 | (98.8) | |||||||||||||||||
Accounts receivable | 33,320 | 47,663 | (30.1) | |||||||||||||||||
Other assets | 347,984 | 248,828 | 39.8 | |||||||||||||||||
Total accrued interest receivable and other assets | $ | 2,316,979 | $ | 1,745,233 | 32.8 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | % Change | ||||||||
Assets: | |||||||||||
Equity warrant assets | $ | 171,082 | $ | 165,473 | 3.4 | % | |||||
Foreign exchange forward and option contracts | 182,093 | 115,854 | 57.2 | ||||||||
Client interest rate derivatives | 87,255 | 28,811 | NM | ||||||||
Interest rate swaps | — | 22,676 | — | ||||||||
Total derivative assets | $ | 440,430 | $ | 332,814 | 32.3 | ||||||
Liabilities: | |||||||||||
Foreign exchange forward and option contracts | $ | 152,538 | $ | 98,207 | 55.3 | ||||||
Client interest rate derivatives | 28,676 | 14,154 | 102.6 | ||||||||
Interest rate swaps | — | 25,623 | — | ||||||||
Total derivative liabilities | $ | 181,214 | $ | 137,984 | 31.3 |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | % Change | |||||||||||||||||
Assets: | ||||||||||||||||||||
Equity warrant assets | $ | 202,184 | $ | 165,473 | 22.2 | % | ||||||||||||||
Foreign exchange forward and option contracts | 145,591 | 115,854 | 25.7 | |||||||||||||||||
Client interest rate derivatives | 79,270 | 28,811 | 175.1 | |||||||||||||||||
Interest rate swaps | — | 22,676 | — | |||||||||||||||||
Total derivative assets | $ | 427,045 | $ | 332,814 | 28.3 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Foreign exchange forward and option contracts | $ | 112,223 | $ | 98,207 | 14.3 | |||||||||||||||
Client interest rate derivatives | 25,558 | 14,154 | 80.6 | |||||||||||||||||
Interest rate swaps | — | 25,623 | — | |||||||||||||||||
Total derivative liabilities | $ | 137,781 | $ | 137,984 | (0.1) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Balance, beginning of period | $ | 171,082 | $ | 158,048 | $ | 165,473 | $ | 149,238 | ||||||||||||||||||
New equity warrant assets | 4,726 | 3,843 | 16,598 | 11,365 | ||||||||||||||||||||||
Non-cash changes in fair value, net | 30,187 | 7,995 | 35,629 | 19,787 | ||||||||||||||||||||||
Exercised equity warrant assets | (3,450) | (20,292) | (14,184) | (28,346) | ||||||||||||||||||||||
Terminated equity warrant assets | (361) | (481) | (1,332) | (2,931) | ||||||||||||||||||||||
Balance, end of period | $ | 202,184 | $ | 149,113 | $ | 202,184 | $ | 149,113 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Balance, beginning of period | $ | 152,710 | $ | 162,215 | $ | 165,473 | $ | 149,238 | ||||||||
New equity warrant assets | 7,353 | 3,051 | 11,872 | 7,521 | ||||||||||||
Non-cash changes in fair value, net | 17,510 | 9,166 | 8,043 | 22,356 | ||||||||||||
Exercised equity warrant assets | (6,052 | ) | (15,339 | ) | (13,434 | ) | (19,183 | ) | ||||||||
Terminated equity warrant assets | (439 | ) | (1,045 | ) | (872 | ) | (1,884 | ) | ||||||||
Balance, end of period | $ | 171,082 | $ | 158,048 | $ | 171,082 | $ | 158,048 |
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | % Change | ||||||||
Foreign exchange spot contract liabilities, gross | $ | 1,278,006 | $ | 888,360 | 43.9 | ||||||
Accrued compensation | 239,190 | 354,393 | (32.5 | ) | |||||||
Allowance for unfunded credit commitments | 99,294 | 67,656 | 46.8 | ||||||||
Derivative liabilities (1) | 181,214 | 137,984 | 31.3 | ||||||||
Net deferred tax liabilities | 89,457 | — | — | ||||||||
Other liabilities | 736,246 | 593,359 | 24.1 | ||||||||
Total other liabilities | $ | 2,623,407 | $ | 2,041,752 | 28.5 |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | % Change | |||||||||||||||||
Foreign exchange spot contract liabilities, gross | $ | 1,468,525 | $ | 888,360 | 65.3 | |||||||||||||||
Accrued compensation | 353,759 | 354,393 | (0.2) | |||||||||||||||||
Allowance for unfunded credit commitments | 101,515 | 67,656 | 50.0 | |||||||||||||||||
Derivative liabilities (1) | 137,781 | 137,984 | (0.1) | |||||||||||||||||
Net deferred tax liabilities | 159,967 | — | — | |||||||||||||||||
Other liabilities | 845,674 | 593,359 | 42.5 | |||||||||||||||||
Total other liabilities | $ | 3,067,221 | $ | 2,041,752 | 50.2 |
(1)See “Derivatives” section above. |
June 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Total Balance | Level 3 | Total Balance | Level 3 | (Dollars in thousands) | Total Balance | Level 3 | Total Balance | Level 3 | |||||||||||||||||||||||||||||||||
Assets carried at fair value | $ | 19,150,966 | $ | 165,359 | $ | 14,672,330 | $ | 161,172 | Assets carried at fair value | $ | 26,787,326 | $ | 192,817 | $ | 14,672,330 | $ | 161,172 | |||||||||||||||||||||||||
As a percentage of total assets | 22.3 | % | 0.2 | % | 20.7 | % | 0.2 | % | As a percentage of total assets | 27.6 | % | 0.2 | % | 20.7 | % | 0.2 | % | |||||||||||||||||||||||||
As a percentage of assets carried at fair value | 0.9 | 1.1 | As a percentage of assets carried at fair value | 0.7 | 1.1 | |||||||||||||||||||||||||||||||||||||
Liabilities carried at fair value | $ | 181,214 | $ | — | $ | 137,984 | $ | — | Liabilities carried at fair value | $ | 137,781 | $ | — | $ | 137,984 | $ | — | |||||||||||||||||||||||||
As a percentage of total liabilities | 0.2 | % | — | % | 0.2 | % | — | % | As a percentage of total liabilities | 0.2 | % | — | % | 0.2 | % | — | % |
June 30, 2020 | December 31, 2019 | Required Minimum (1) | Well Capitalized Minimum | September 30, 2020 | December 31, 2019 | Required Minimum (1) | Well Capitalized Minimum | |||||||||||||||||||||||||||||||
SVB Financial: | SVB Financial: | |||||||||||||||||||||||||||||||||||||
CET 1 risk-based capital ratio (2)(3) | 12.63 | % | 12.58 | % | 7.0 | % | N/A | CET 1 risk-based capital ratio (2)(3) | 12.31 | % | 12.58 | % | 7.0 | % | N/A | |||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 13.62 | 13.43 | 8.5 | 6.0 | Tier 1 risk-based capital ratio (3) | 13.25 | 13.43 | 8.5 | 6.0 | |||||||||||||||||||||||||||||
Total risk-based capital ratio (3) | 14.77 | 14.23 | 10.5 | 10.0 | Total risk-based capital ratio (3) | 14.19 | 14.23 | 10.5 | 10.0 | |||||||||||||||||||||||||||||
Tier 1 leverage ratio (2)(3) | 8.68 | 9.06 | 4.0 | N/A | Tier 1 leverage ratio (2)(3) | 8.26 | 9.06 | 4.0 | N/A | |||||||||||||||||||||||||||||
Tangible common equity to tangible assets ratio (4)(5) | 7.94 | 8.39 | N/A | N/A | Tangible common equity to tangible assets ratio (4)(5) | 7.52 | 8.39 | N/A | N/A | |||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets ratio (4)(5) | 13.68 | 12.76 | N/A | N/A | Tangible common equity to risk-weighted assets ratio (4)(5) | 13.28 | 12.76 | N/A | N/A | |||||||||||||||||||||||||||||
Bank: | Bank: | |||||||||||||||||||||||||||||||||||||
CET 1 risk-based capital ratio (3) | 11.08 | % | 11.12 | % | 7.0 | % | 6.5 | % | CET 1 risk-based capital ratio (3) | 10.75 | % | 11.12 | % | 7.0 | % | 6.5 | % | |||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 11.08 | 11.12 | 8.5 | 8.0 | Tier 1 risk-based capital ratio (3) | 10.75 | 11.12 | 8.5 | 8.0 | |||||||||||||||||||||||||||||
Total risk-based capital ratio (3) | 12.28 | 11.96 | 10.5 | 10.0 | Total risk-based capital ratio (3) | 11.75 | 11.96 | 10.5 | 10.0 | |||||||||||||||||||||||||||||
Tier 1 leverage ratio (3) | 6.91 | 7.30 | 4.0 | 5.0 | Tier 1 leverage ratio (3) | 6.45 | 7.30 | 4.0 | 5.0 | |||||||||||||||||||||||||||||
Tangible common equity to tangible assets ratio (4)(5) | 6.91 | 7.24 | N/A | N/A | Tangible common equity to tangible assets ratio (4)(5) | 6.42 | 7.24 | N/A | N/A | |||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets ratio (4)(5) | 12.17 | 11.31 | N/A | N/A | Tangible common equity to risk-weighted assets ratio (4)(5) | 11.79 | 11.31 | N/A | N/A |
SVB Financial | Bank | |||||||||||||||||||||||||
Non-GAAP tangible common equity and tangible assets (Dollars in thousands, except ratios) | September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
GAAP SVBFG stockholders’ equity | $ | 7,792,935 | $ | 6,470,307 | $ | 6,104,361 | $ | 5,034,095 | ||||||||||||||||||
Less: preferred stock | 340,138 | 340,138 | — | — | ||||||||||||||||||||||
Less: intangible assets | 183,203 | 187,240 | — | — | ||||||||||||||||||||||
Tangible common equity | $ | 7,269,594 | $ | 5,942,929 | $ | 6,104,361 | $ | 5,034,095 | ||||||||||||||||||
GAAP total assets | $ | 96,916,771 | $ | 71,004,903 | $ | 95,012,287 | $ | 69,563,817 | ||||||||||||||||||
Less: intangible assets | 183,203 | 187,240 | — | — | ||||||||||||||||||||||
Tangible assets | $ | 96,733,568 | $ | 70,817,663 | $ | 95,012,287 | $ | 69,563,817 | ||||||||||||||||||
Risk-weighted assets | $ | 54,738,028 | $ | 46,577,485 | $ | 51,792,822 | $ | 44,502,150 | ||||||||||||||||||
Non-GAAP tangible common equity to tangible assets | 7.52 | % | 8.39 | % | 6.42 | % | 7.24 | % | ||||||||||||||||||
Non-GAAP tangible common equity to risk-weighted assets | 13.28 | 12.76 | 11.79 | 11.31 |
SVB Financial | Bank | |||||||||||||||
Non-GAAP tangible common equity and tangible assets (Dollars in thousands, except ratios) | June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | ||||||||||||
GAAP SVBFG stockholders’ equity | $ | 7,319,373 | $ | 6,470,307 | $ | 5,821,224 | $ | 5,034,095 | ||||||||
Less: preferred stock | 340,138 | 340,138 | — | — | ||||||||||||
Less: intangible assets | 184,549 | 187,240 | — | — | ||||||||||||
Tangible common equity | $ | 6,794,686 | $ | 5,942,929 | $ | 5,821,224 | $ | 5,034,095 | ||||||||
GAAP total assets | $ | 85,730,985 | $ | 71,004,903 | $ | 84,214,926 | $ | 69,563,817 | ||||||||
Less: intangible assets | 184,549 | 187,240 | — | — | ||||||||||||
Tangible assets | $ | 85,546,436 | $ | 70,817,663 | $ | 84,214,926 | $ | 69,563,817 | ||||||||
Risk-weighted assets | $ | 49,682,026 | $ | 46,577,485 | $ | 47,838,181 | $ | 44,502,150 | ||||||||
Non-GAAP tangible common equity to tangible assets | 7.94 | % | 8.39 | % | 6.91 | % | 7.24 | % | ||||||||
Non-GAAP tangible common equity to risk-weighted assets | 13.68 | 12.76 | 12.17 | 11.31 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | (Dollars in thousands) | 2020 | 2019 | |||||||||||||||||
Average cash and cash equivalents | $ | 10,460,207 | $ | 5,470,520 | Average cash and cash equivalents | $ | 11,977,637 | $ | 6,250,024 | |||||||||||||
Percentage of total average assets | 13.9 | % | 9.3 | % | Percentage of total average assets | 15.0 | % | 10.2 | % | |||||||||||||
Net cash provided by operating activities | $ | 745,478 | $ | 450,571 | Net cash provided by operating activities | $ | 1,053,291 | $ | 709,744 | |||||||||||||
Net cash (used for) provided by investing activities | (6,532,868 | ) | (317,021 | ) | ||||||||||||||||||
Net cash used for investing activities | Net cash used for investing activities | (15,588,371) | (6,564,776) | |||||||||||||||||||
Net cash provided by financing activities | 13,207,713 | 5,315,836 | Net cash provided by financing activities | 23,441,073 | 9,229,689 | |||||||||||||||||
Net increase in cash and cash equivalents | $ | 7,420,323 | $ | 5,449,386 | Net increase in cash and cash equivalents | $ | 8,905,993 | $ | 3,374,657 |
Change in interest rates (bps) (Dollars in thousands) | Estimated | Estimated Increase/(Decrease) in EVE | Estimated | Estimated Increase/(Decrease) in NII | Change in interest rates (bps) (Dollars in thousands) | Estimated | Estimated Increase/(Decrease) in EVE | Estimated | Estimated Increase/(Decrease) in NII | |||||||||||||||||||||||||||||||||||||||||||||||||||
EVE | Amount | Percent | NII | Amount | Percent | EVE | Amount | Percent | NII | Amount | Percent | |||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020: | September 30, 2020: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
+200 | $ | 10,617,433 | $ | 46,816 | 0.4 | % | $ | 2,580,576 | $ | 645,203 | 33.3 | % | +200 | $ | 9,759,888 | $ | (2,974,849) | (23.4) | % | $ | 2,598,515 | $ | 556,572 | 27.3 | % | |||||||||||||||||||||||||||||||||||
+100 | 10,686,185 | 115,568 | 1.1 | 2,251,632 | 316,259 | 16.3 | +100 | 11,314,703 | (1,420,034) | (11.2) | 2,310,317 | 268,374 | 13.1 | |||||||||||||||||||||||||||||||||||||||||||||||
— | 10,570,617 | — | — | 1,935,373 | — | — | — | 12,734,737 | — | — | 2,041,943 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
-100 | 10,659,364 | 88,747 | 0.8 | 1,857,782 | (77,591 | ) | (4.0 | ) | -100 | 14,039,442 | 1,304,705 | 10.2 | 2,017,397 | (24,546) | (1.2) | |||||||||||||||||||||||||||||||||||||||||||||
-200 | 10,659,364 | 88,747 | 0.8 | 1,852,890 | (82,483 | ) | (4.3 | ) | -200 | 14,134,314 | 1,399,577 | 11.0 | 2,011,461 | (30,482) | (1.5) | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019: (as revised) | December 31, 2019: (as revised) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
+200 | $ | 9,930,270 | $ | (253,659 | ) | (2.5 | )% | $ | 2,528,158 | $ | 421,358 | 20.0 | % | +200 | $ | 7,269,359 | $ | (1,509,966) | (17.2) | % | $ | 2,588,319 | $ | 523,423 | 25.3 | % | ||||||||||||||||||||||||||||||||||
+100 | 10,056,711 | (127,218 | ) | (1.2 | ) | 2,314,686 | 207,886 | 9.9 | +100 | 8,039,360 | (739,965) | (8.4) | 2,326,428 | 261,532 | 12.7 | |||||||||||||||||||||||||||||||||||||||||||||
— | 10,183,929 | — | — | 2,106,800 | — | — | — | 8,779,325 | — | — | 2,064,896 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
-100 | 10,138,558 | (45,371 | ) | (0.4 | ) | 1,927,801 | (178,999 | ) | (8.5 | ) | -100 | 9,254,622 | 475,297 | 5.4 | 1,789,625 | (275,271) | (13.3) | |||||||||||||||||||||||||||||||||||||||||||
-200 | 10,000,585 | (183,344 | ) | (1.8 | ) | 1,760,283 | (346,517 | ) | (16.4 | ) | -200 | 9,779,377 | 1,000,052 | 11.4 | 1,514,354 | (550,542) | (26.7) |
Period ended | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced programs | Maximum dollar value that may yet be purchased under the programs (1) | ||||||||||
April 30, 2020 | — | $ | — | — | $ | — | ||||||||
May 31, 2020 | — | — | — | — | ||||||||||
June 30, 2020 | — | — | — | — | ||||||||||
Total | — | $ | — | 244,223 | $ | 289,979,534 |
Period ended | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced programs | Maximum dollar value that may yet be purchased under the programs (1) | ||||||||||||||||||||||
July 31, 2020 | — | $ | — | — | $ | — | ||||||||||||||||||||
August 31, 2020 | — | — | — | — | ||||||||||||||||||||||
September 30, 2020 | — | — | — | — | ||||||||||||||||||||||
Total | — | $ | — | 244,223 | $ | 289,979,534 |
(1) On October 24, 2019, the Company announced that its Board of Directors had authorized a $350 million common |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||||||||||||||||||||||||||||
Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||||||||
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: | /s/ DANIEL BECK | |||||||
Daniel Beck | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) | ||||||||
SVB Financial Group | ||||||||
Date: | /s/ KAREN HON | |||||||
Karen Hon | ||||||||
Chief Accounting Officer | ||||||||
(Principal Accounting Officer) |