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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|
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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(Dollars in thousands, except par value and share data)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
9,561,448
|
|
|
$
|
6,781,783
|
|
Available-for-sale securities, at fair value (cost of $12,044,717 and $13,894,348, respectively)
|
|
12,648,064
|
|
|
14,014,919
|
|
||
Held-to-maturity securities, at amortized cost and net of allowance for credit losses of $230 and $0 (fair value of $14,131,154 and $14,115,272, respectively) (1)
|
|
13,574,289
|
|
|
13,842,946
|
|
||
Non-marketable and other equity securities
|
|
1,200,595
|
|
|
1,213,829
|
|
||
Total investment securities
|
|
27,422,948
|
|
|
29,071,694
|
|
||
Loans, amortized cost
|
|
35,968,085
|
|
|
33,164,636
|
|
||
Allowance for credit losses: loans
|
|
(548,963
|
)
|
|
(304,924
|
)
|
||
Net loans
|
|
35,419,122
|
|
|
32,859,712
|
|
||
Premises and equipment, net of accumulated depreciation and amortization
|
|
154,780
|
|
|
161,876
|
|
||
Goodwill
|
|
137,823
|
|
|
137,823
|
|
||
Other intangible assets, net
|
|
48,072
|
|
|
49,417
|
|
||
Lease right-of-use assets
|
|
206,392
|
|
|
197,365
|
|
||
Accrued interest receivable and other assets
|
|
2,059,055
|
|
|
1,745,233
|
|
||
Total assets
|
|
$
|
75,009,640
|
|
|
$
|
71,004,903
|
|
Liabilities and total equity:
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Noninterest-bearing demand deposits
|
|
$
|
42,902,200
|
|
|
$
|
40,841,570
|
|
Interest-bearing deposits
|
|
19,009,757
|
|
|
20,916,237
|
|
||
Total deposits
|
|
61,911,957
|
|
|
61,757,807
|
|
||
Short-term borrowings
|
|
3,138,162
|
|
|
17,430
|
|
||
Lease liabilities
|
|
227,271
|
|
|
218,847
|
|
||
Other liabilities
|
|
2,200,953
|
|
|
2,041,752
|
|
||
Long-term debt
|
|
348,076
|
|
|
347,987
|
|
||
Total liabilities
|
|
67,826,419
|
|
|
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; 51,490,342 shares and 51,655,607 shares issued and outstanding, respectively
|
|
52
|
|
|
52
|
|
||
Additional paid-in capital
|
|
1,489,240
|
|
|
1,470,071
|
|
||
Retained earnings
|
|
4,612,785
|
|
|
4,575,601
|
|
||
Accumulated other comprehensive income
|
|
592,534
|
|
|
84,445
|
|
||
Total SVBFG stockholders’ equity
|
|
7,034,749
|
|
|
6,470,307
|
|
||
Noncontrolling interests
|
|
148,472
|
|
|
150,773
|
|
||
Total equity
|
|
7,183,221
|
|
|
6,621,080
|
|
||
Total liabilities and total equity
|
|
$
|
75,009,640
|
|
|
$
|
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 March 31,
|
||||||
(Dollars in thousands, except per share amounts)
|
|
2020
|
|
2019
|
||||
Interest income:
|
|
|
|
|
||||
Loans
|
|
$
|
382,569
|
|
|
$
|
394,144
|
|
Investment securities:
|
|
|
|
|
||||
Taxable
|
|
154,385
|
|
|
126,717
|
|
||
Non-taxable
|
|
12,824
|
|
|
10,937
|
|
||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities
|
|
17,624
|
|
|
19,216
|
|
||
Total interest income
|
|
567,402
|
|
|
551,014
|
|
||
Interest expense:
|
|
|
|
|
||||
Deposits
|
|
37,398
|
|
|
27,907
|
|
||
Borrowings
|
|
5,867
|
|
|
10,221
|
|
||
Total interest expense
|
|
43,265
|
|
|
38,128
|
|
||
Net interest income
|
|
524,137
|
|
|
512,886
|
|
||
Provision for credit losses
|
|
243,480
|
|
|
28,551
|
|
||
Net interest income after provision for credit losses
|
|
280,657
|
|
|
484,335
|
|
||
Noninterest income:
|
|
|
|
|
||||
Gains on investment securities, net
|
|
46,055
|
|
|
29,028
|
|
||
Gains on equity warrant assets, net
|
|
13,395
|
|
|
21,305
|
|
||
Client investment fees
|
|
43,393
|
|
|
44,482
|
|
||
Foreign exchange fees
|
|
47,505
|
|
|
38,048
|
|
||
Credit card fees
|
|
28,304
|
|
|
27,483
|
|
||
Deposit service charges
|
|
24,589
|
|
|
20,939
|
|
||
Lending related fees
|
|
13,125
|
|
|
13,937
|
|
||
Letters of credit and standby letters of credit fees
|
|
11,542
|
|
|
9,354
|
|
||
Investment banking revenue
|
|
46,867
|
|
|
49,795
|
|
||
Commissions
|
|
16,022
|
|
|
14,108
|
|
||
Other
|
|
11,137
|
|
|
11,897
|
|
||
Total noninterest income
|
|
301,934
|
|
|
280,376
|
|
||
Noninterest expense:
|
|
|
|
|
||||
Compensation and benefits
|
|
255,586
|
|
|
238,061
|
|
||
Professional services
|
|
38,705
|
|
|
36,986
|
|
||
Premises and equipment
|
|
26,940
|
|
|
21,700
|
|
||
Net occupancy
|
|
18,346
|
|
|
16,048
|
|
||
Business development and travel
|
|
14,071
|
|
|
15,354
|
|
||
FDIC and state assessments
|
|
5,234
|
|
|
3,979
|
|
||
Other
|
|
40,703
|
|
|
33,536
|
|
||
Total noninterest expense
|
|
399,585
|
|
|
365,664
|
|
||
Income before income tax expense
|
|
183,006
|
|
|
399,047
|
|
||
Income tax expense
|
|
49,357
|
|
|
107,435
|
|
||
Net income before noncontrolling interests
|
|
133,649
|
|
|
291,612
|
|
||
Net loss (income) attributable to noncontrolling interests
|
|
1,973
|
|
|
(2,880
|
)
|
||
Preferred stock dividends
|
|
(3,369
|
)
|
|
—
|
|
||
Net income available to common stockholders
|
|
$
|
132,253
|
|
|
$
|
288,732
|
|
Earnings per common share—basic
|
|
$
|
2.56
|
|
|
$
|
5.49
|
|
Earnings per common share—diluted
|
|
2.55
|
|
|
5.44
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Net income before noncontrolling interests
|
|
$
|
133,649
|
|
|
$
|
291,612
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
||||
Change in foreign currency cumulative translation gains and losses:
|
|
|
|
|
||||
Foreign currency translation (losses) gains
|
|
(9,120
|
)
|
|
2,806
|
|
||
Related tax benefit (expense)
|
|
2,556
|
|
|
(782
|
)
|
||
Change in unrealized gains and losses on available-for-sale securities:
|
|
|
|
|
||||
Unrealized holding gains
|
|
543,881
|
|
|
46,836
|
|
||
Related tax expense
|
|
(150,746
|
)
|
|
(13,045
|
)
|
||
Reclassification adjustment for (gains) losses included in net income
|
|
(61,165
|
)
|
|
3,630
|
|
||
Related tax expense (benefit)
|
|
16,953
|
|
|
(1,010
|
)
|
||
Amortization of unrealized holding gains on securities transferred from available-for-sale to held-to-maturity
|
|
(552
|
)
|
|
(674
|
)
|
||
Related tax benefit
|
|
153
|
|
|
188
|
|
||
Change in unrealized gains and losses on cash flow hedges:
|
|
|
|
|
||||
Unrealized gains
|
|
231,920
|
|
|
1,102
|
|
||
Related tax expense
|
|
(64,281
|
)
|
|
(307
|
)
|
||
Reclassification adjustment for (gains) losses included in net income
|
|
(2,089
|
)
|
|
3
|
|
||
Related tax expense (benefit)
|
|
579
|
|
|
(1
|
)
|
||
Other comprehensive income, net of tax
|
|
508,089
|
|
|
38,746
|
|
||
Comprehensive income
|
|
641,738
|
|
|
330,358
|
|
||
Comprehensive loss (income) attributable to noncontrolling interests
|
|
1,973
|
|
|
(2,880
|
)
|
||
Comprehensive income attributable to SVBFG
|
|
$
|
643,711
|
|
|
$
|
327,478
|
|
|
|
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
|
|
—
|
|
|
209,743
|
|
|
—
|
|
|
(2,936
|
)
|
|
—
|
|
|
—
|
|
|
(2,936
|
)
|
|
—
|
|
|
(2,936
|
)
|
||||||||
Common stock issued under ESOP
|
|
—
|
|
|
14,442
|
|
|
—
|
|
|
3,506
|
|
|
—
|
|
|
—
|
|
|
3,506
|
|
|
—
|
|
|
3,506
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
288,732
|
|
|
—
|
|
|
288,732
|
|
|
2,880
|
|
|
291,612
|
|
||||||||
Capital calls and distributions, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,720
|
)
|
|
(15,720
|
)
|
||||||||
Net change in unrealized gains and losses on AFS securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,411
|
|
|
36,411
|
|
|
—
|
|
|
36,411
|
|
||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(486
|
)
|
|
(486
|
)
|
|
—
|
|
|
(486
|
)
|
||||||||
Foreign currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,024
|
|
|
2,024
|
|
|
—
|
|
|
2,024
|
|
||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
797
|
|
|
797
|
|
|
—
|
|
|
797
|
|
||||||||
Share-based compensation, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,122
|
|
|
—
|
|
|
—
|
|
|
15,122
|
|
|
—
|
|
|
15,122
|
|
||||||||
Common stock repurchases
|
|
—
|
|
|
(488,578
|
)
|
|
(1
|
)
|
|
—
|
|
|
(116,022
|
)
|
|
—
|
|
|
(116,023
|
)
|
|
—
|
|
|
(116,023
|
)
|
||||||||
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
|
|
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
|
|
—
|
|
|
66,864
|
|
|
—
|
|
|
(3,031
|
)
|
|
—
|
|
|
—
|
|
|
(3,031
|
)
|
|
—
|
|
|
(3,031
|
)
|
||||||||
Common stock issued under ESOP
|
|
—
|
|
|
12,094
|
|
|
—
|
|
|
2,447
|
|
|
—
|
|
|
—
|
|
|
2,447
|
|
|
—
|
|
|
2,447
|
|
||||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
135,622
|
|
|
—
|
|
|
135,622
|
|
|
(1,973
|
)
|
|
133,649
|
|
||||||||
Capital calls and distributions, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(328
|
)
|
|
(328
|
)
|
||||||||
Net change in unrealized gains and losses on AFS securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
348,923
|
|
|
348,923
|
|
|
—
|
|
|
348,923
|
|
||||||||
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(399
|
)
|
|
(399
|
)
|
|
—
|
|
|
(399
|
)
|
||||||||
Foreign currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,564
|
)
|
|
(6,564
|
)
|
|
—
|
|
|
(6,564
|
)
|
||||||||
Net change in unrealized gains and losses on cash flow hedges, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
166,129
|
|
|
166,129
|
|
|
—
|
|
|
166,129
|
|
||||||||
Share-based compensation, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,171
|
|
|
—
|
|
|
—
|
|
|
19,171
|
|
|
—
|
|
|
19,171
|
|
||||||||
Common stock repurchases
|
|
—
|
|
|
(244,223
|
)
|
|
|
|
|
—
|
|
|
(60,020
|
)
|
|
—
|
|
|
(60,020
|
)
|
|
—
|
|
|
(60,020
|
)
|
||||||||
Dividends on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,369
|
)
|
|
—
|
|
|
(3,369
|
)
|
|
—
|
|
|
(3,369
|
)
|
||||||||
Other, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
582
|
|
|
—
|
|
|
—
|
|
|
582
|
|
|
—
|
|
|
582
|
|
||||||||
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
|
|
|
(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.
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income before noncontrolling interests
|
|
$
|
133,649
|
|
|
$
|
291,612
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Provision for credit losses
|
|
243,480
|
|
|
28,551
|
|
||
Changes in fair values of equity warrant assets, net of proceeds from exercises
|
|
18,574
|
|
|
(10,248
|
)
|
||
Changes in fair values of derivatives, net
|
|
(63,034
|
)
|
|
(3,068
|
)
|
||
Gains on investment securities, net
|
|
(46,055
|
)
|
|
(29,028
|
)
|
||
Distributions of earnings from non-marketable and other equity securities
|
|
12,346
|
|
|
15,619
|
|
||
Depreciation and amortization
|
|
24,824
|
|
|
20,830
|
|
||
Amortization of premiums and discounts on investment securities, net
|
|
13,565
|
|
|
1,606
|
|
||
Amortization of share-based compensation
|
|
19,171
|
|
|
15,122
|
|
||
Amortization of deferred loan fees
|
|
(33,016
|
)
|
|
(35,276
|
)
|
||
Deferred income tax benefit
|
|
(60,126
|
)
|
|
(8,834
|
)
|
||
Excess tax benefit from exercise of stock options and vesting of restricted shares
|
|
(2,575
|
)
|
|
(2,804
|
)
|
||
Losses from the write-off of premises and equipment
|
|
—
|
|
|
52
|
|
||
Changes in other assets and liabilities:
|
|
|
|
|
||||
Accrued interest receivable and payable, net
|
|
23,982
|
|
|
(3,361
|
)
|
||
Accounts receivable and payable, net
|
|
(45,311
|
)
|
|
30,447
|
|
||
Income tax receivable and payable, net
|
|
66,581
|
|
|
94,552
|
|
||
Accrued compensation
|
|
(236,834
|
)
|
|
(253,769
|
)
|
||
Foreign exchange spot contracts, net
|
|
(12,583
|
)
|
|
169,079
|
|
||
Proceeds from termination of interest rate swaps
|
|
180,500
|
|
|
—
|
|
||
Other, net
|
|
(69,013
|
)
|
|
19,668
|
|
||
Net cash provided by operating activities
|
|
168,125
|
|
|
340,750
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchases of available-for-sale securities
|
|
(1,538,553
|
)
|
|
(204,328
|
)
|
||
Proceeds from sales of available-for-sale securities
|
|
2,654,212
|
|
|
1,171,564
|
|
||
Proceeds from maturities and paydowns of available-for-sale securities
|
|
785,692
|
|
|
116,001
|
|
||
Purchases of held-to-maturity securities
|
|
(358,650
|
)
|
|
—
|
|
||
Proceeds from maturities and paydowns of held-to-maturity securities
|
|
646,212
|
|
|
428,433
|
|
||
Purchases of non-marketable and other equity securities
|
|
(12,177
|
)
|
|
(16,165
|
)
|
||
Proceeds from sales and distributions of capital of non-marketable and other equity securities
|
|
45,720
|
|
|
19,979
|
|
||
Net increase in loans
|
|
(2,796,409
|
)
|
|
(505,516
|
)
|
||
Purchases of premises and equipment
|
|
(25,088
|
)
|
|
(5,504
|
)
|
||
Acquisition of SVB Leerink, net of cash acquired
|
|
—
|
|
|
(100,037
|
)
|
||
Net (cash used) provided by for investing activities
|
|
(599,041
|
)
|
|
904,427
|
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Net increase in deposits
|
|
154,150
|
|
|
2,998,297
|
|
||
Net increase (decrease) in short-term borrowings
|
|
3,120,732
|
|
|
(616,957
|
)
|
||
(Distributions to noncontrolling interests), net of contributions from noncontrolling interests
|
|
(328
|
)
|
|
(15,720
|
)
|
||
Payment of preferred stock dividend
|
|
(3,369
|
)
|
|
—
|
|
||
Common stock repurchases
|
|
(60,020
|
)
|
|
(116,023
|
)
|
||
Proceeds from issuance of common stock, ESPP and ESOP, net of restricted stock awards
|
|
(584
|
)
|
|
570
|
|
||
Net cash provided by financing activities
|
|
3,210,581
|
|
|
2,250,167
|
|
||
Net increase in cash and cash equivalents
|
|
2,779,665
|
|
|
3,495,344
|
|
||
Cash and cash equivalents at beginning of period
|
|
6,781,783
|
|
|
3,571,539
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
9,561,448
|
|
|
$
|
7,066,883
|
|
Supplemental disclosures:
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
46,145
|
|
|
$
|
46,548
|
|
Income taxes
|
|
31,988
|
|
|
17,570
|
|
||
Noncash items during the period:
|
|
|
|
|
||||
Changes in unrealized gains and losses on available-for-sale securities, net of tax
|
|
$
|
348,923
|
|
|
$
|
36,411
|
|
Distributions of stock from investments
|
|
3,119
|
|
|
1,276
|
|
1.
|
Basis of Presentation
|
(i)
|
Investor Dependent - Accelerator (Early-Stage) and Growth (Mid-Stage and Later-Stage)
|
(ii)
|
Cash Flow Dependent
|
(iv)
|
Private Equity/Venture Capital
|
(v)
|
Private Bank
|
(vi)
|
Premium Wine and Other
|
•
|
Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses;
|
•
|
Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments;
|
•
|
Changes in the nature and volume of the portfolio and in the terms of loans;
|
•
|
Changes in the experience, ability and depth of lending management and other relevant staff;
|
•
|
Changes in the volume and severity of past due loans, the volume of nonaccrual loans and the volume and severity of adversely classified or graded loans;
|
•
|
Changes in the quality of the institution’s loan review system;
|
•
|
Changes in the value of underlying collateral for collateral-dependent loans;
|
•
|
The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and
|
•
|
The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio.
|
(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
|
|
2.
|
Stockholders' Equity and EPS
|
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
Income Statement Location
|
|
2020
|
|
2019
|
||||
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income
|
|
Gains on investment securities, net
|
|
$
|
(61,165
|
)
|
|
$
|
3,630
|
|
Related tax expense (benefit)
|
|
Income tax expense
|
|
16,953
|
|
|
(1,010
|
)
|
||
Reclassification adjustment for (gains) losses on cash flow hedges included in net income
|
|
Net interest income
|
|
(2,089
|
)
|
|
3
|
|
||
Related tax expense (benefit)
|
|
Income tax expense
|
|
579
|
|
|
(1
|
)
|
||
Total reclassification adjustment for (gains) losses included in net income, net of tax
|
|
|
|
$
|
(45,722
|
)
|
|
$
|
2,622
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Balance, beginning of period, net of tax
|
|
$
|
(2,130
|
)
|
|
$
|
—
|
|
Net increase in fair value, net of tax
|
|
167,639
|
|
|
795
|
|
||
Net realized (gain) loss reclassified to net income, net of tax
|
|
(1,510
|
)
|
|
2
|
|
||
Balance, end of period, net of tax
|
|
$
|
163,999
|
|
|
$
|
797
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars and shares in thousands, except per share amounts)
|
|
2020
|
|
2019
|
||||
Numerator:
|
|
|
|
|
||||
Net income available to common stockholders
|
|
$
|
132,253
|
|
|
$
|
288,732
|
|
Denominator:
|
|
|
|
|
||||
Weighted average common shares outstanding—basic
|
|
51,565
|
|
|
52,587
|
|
||
Weighted average effect of dilutive securities:
|
|
|
|
|
||||
Stock options and ESPP
|
|
217
|
|
|
297
|
|
||
Restricted stock units and awards
|
|
162
|
|
|
225
|
|
||
Weighted average common shares outstanding—diluted
|
|
51,944
|
|
|
53,109
|
|
||
Earnings per common share:
|
|
|
|
|
||||
Basic
|
|
$
|
2.56
|
|
|
$
|
5.49
|
|
Diluted
|
|
2.55
|
|
|
5.44
|
|
|
|
Three months ended March 31,
|
||||
(Shares in thousands)
|
|
2020
|
|
2019
|
||
Stock options
|
|
206
|
|
|
91
|
|
Restricted stock units
|
|
119
|
|
|
134
|
|
Total
|
|
325
|
|
|
225
|
|
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
|
|
|
$
|
0.24
|
|
3.
|
Share-Based Compensation
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Share-based compensation expense
|
|
$
|
19,171
|
|
|
$
|
15,122
|
|
Income tax benefit related to share-based compensation expense
|
|
(4,440
|
)
|
|
(3,327
|
)
|
(Dollars in thousands)
|
|
Unrecognized
Expense
|
|
Weighted Average Expected
Recognition Period
- in Years
|
||
Stock options
|
|
$
|
12,668
|
|
|
2.35
|
Restricted stock units and awards
|
|
95,440
|
|
|
2.66
|
|
Total unrecognized share-based compensation expense
|
|
$
|
108,108
|
|
|
|
|
|
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
|
|
1,316
|
|
|
244.69
|
|
|
|
|
|
|||
Exercised
|
|
(50,733
|
)
|
|
85.32
|
|
|
|
|
|
|||
Forfeited
|
|
(2,399
|
)
|
|
224.87
|
|
|
|
|
|
|||
Outstanding at March 31, 2020
|
|
573,591
|
|
|
176.70
|
|
|
3.63
|
|
$
|
11,973,716
|
|
|
Vested and expected to vest at March 31, 2020
|
|
560,684
|
|
|
174.94
|
|
|
3.58
|
|
11,967,072
|
|
||
Exercisable at March 31, 2020
|
|
310,688
|
|
|
131.01
|
|
|
2.34
|
|
10,376,626
|
|
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested at December 31, 2019
|
|
847,972
|
|
|
$
|
236.54
|
|
Granted
|
|
46,027
|
|
|
217.97
|
|
|
Vested
|
|
(77,900
|
)
|
|
205.91
|
|
|
Forfeited
|
|
(19,591
|
)
|
|
220.12
|
|
|
Nonvested at March 31, 2020
|
|
796,508
|
|
|
238.86
|
|
4.
|
Variable Interest Entities
|
(Dollars in thousands)
|
|
Consolidated VIEs
|
|
Unconsolidated VIEs
|
|
Maximum Exposure to Loss in Unconsolidated VIEs
|
||||||
March 31, 2020:
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
9,322
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-marketable and other equity securities (1)
|
|
261,049
|
|
|
722,600
|
|
|
722,600
|
|
|||
Accrued interest receivable and other assets
|
|
1,374
|
|
|
—
|
|
|
—
|
|
|||
Total assets
|
|
$
|
271,745
|
|
|
$
|
722,600
|
|
|
$
|
722,600
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
Other liabilities (1)
|
|
1,677
|
|
|
348,272
|
|
|
—
|
|
|||
Total liabilities
|
|
$
|
1,677
|
|
|
$
|
348,272
|
|
|
$
|
—
|
|
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
|
|
|
$
|
—
|
|
|
(1)
|
Included in our unconsolidated non-marketable and other equity securities portfolio at March 31, 2020 and December 31, 2019 are investments in qualified affordable housing projects of $500.8 million and $458.5 million, respectively, and related other liabilities consisting of unfunded commitments of $348.3 million and $302.0 million, respectively.
|
5.
|
Cash and Cash Equivalents
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Cash and due from banks (1)
|
|
$
|
9,159,690
|
|
|
$
|
6,492,443
|
|
Securities purchased under agreements to resell (2)
|
|
401,758
|
|
|
289,340
|
|
||
Total cash and cash equivalents
|
|
$
|
9,561,448
|
|
|
$
|
6,781,783
|
|
|
(1)
|
At March 31, 2020 and December 31, 2019, $7.2 billion and $3.7 billion, respectively, of our cash and due from banks was deposited at the Federal Reserve Bank and was earning interest at the Federal Funds target rate, and interest-earning deposits in other financial institutions were $1.4 billion and $2.1 billion, respectively.
|
(2)
|
At March 31, 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 $409.8 million and $295.3 million, respectively. None of these securities were sold or repledged as of March 31, 2020 and December 31, 2019.
|
6.
|
Investment Securities
|
|
|
March 31, 2020
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Carrying
Value
|
||||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
3,745,238
|
|
|
$
|
298,602
|
|
|
$
|
—
|
|
|
$
|
4,043,840
|
|
U.S. agency debentures
|
|
100,000
|
|
|
1,687
|
|
|
—
|
|
|
101,687
|
|
||||
Foreign government debt securities
|
|
22,169
|
|
|
1
|
|
|
(18
|
)
|
|
22,152
|
|
||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
4,758,167
|
|
|
185,347
|
|
|
(2
|
)
|
|
4,943,512
|
|
||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,409,673
|
|
|
56,002
|
|
|
—
|
|
|
1,465,675
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
2,009,470
|
|
|
61,728
|
|
|
—
|
|
|
2,071,198
|
|
||||
Total available-for-sale securities
|
|
$
|
12,044,717
|
|
|
$
|
603,367
|
|
|
$
|
(20
|
)
|
|
$
|
12,648,064
|
|
|
|
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
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Sales proceeds
|
|
$
|
2,654,212
|
|
|
$
|
1,171,564
|
|
Net realized gains and losses:
|
|
|
|
|
||||
Gross realized gains
|
|
61,165
|
|
|
—
|
|
||
Gross realized losses
|
|
—
|
|
|
(3,630
|
)
|
||
Net realized gains (losses)
|
|
$
|
61,165
|
|
|
$
|
(3,630
|
)
|
|
(1)
|
As of March 31, 2020, we identified a total of 2 investments that were in unrealized loss positions, and neither position was in an unrealized loss position for a period of time greater than 12 months. Based on our analysis of the securities in an unrealized loss position as of March 31, 2020, the decline in value is unrelated to credit loss and is related to changes in market interest rates since purchase and therefore changes in value for securities are included in other comprehensive income. Market valuations and credit loss analyses on assets in the available-for-sale securities portfolio are reviewed and monitored on a quarterly basis. As of March 31, 2020, we do not intend to sell any of our securities in an unrealized loss position prior to recovery of our amortized cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our amortized cost basis. None of the investments in our available-for-sale securities portfolio were past due as of March 31, 2020.
|
|
|
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)
|
As of December 31, 2019, we identified a total of 58 investments that were in unrealized loss positions, of which 12 investments totaling $0.4 billion with unrealized losses of $0.1 million have been in an unrealized loss position for a period of time greater than 12 months.
|
|
|
March 31, 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
|
|
$
|
4,043,840
|
|
|
$
|
110,935
|
|
|
$
|
1,626,096
|
|
|
$
|
2,306,809
|
|
|
$
|
—
|
|
U.S. agency debentures
|
|
101,687
|
|
|
—
|
|
|
—
|
|
|
101,687
|
|
|
—
|
|
|||||
Foreign government debt securities
|
|
22,152
|
|
|
22,152
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency-issued mortgage-backed securities
|
|
4,943,512
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,943,512
|
|
|||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,465,675
|
|
|
—
|
|
|
1,094
|
|
|
—
|
|
|
1,464,581
|
|
|||||
Agency-issued commercial mortgage-backed securities
|
|
2,071,198
|
|
|
—
|
|
|
—
|
|
|
803,536
|
|
|
1,267,662
|
|
|||||
Total
|
|
$
|
12,648,064
|
|
|
$
|
133,087
|
|
|
$
|
1,627,190
|
|
|
$
|
3,212,032
|
|
|
$
|
7,675,755
|
|
|
|
March 31, 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)
|
|
$
|
453,353
|
|
|
$
|
14,799
|
|
|
$
|
—
|
|
|
$
|
468,152
|
|
|
$
|
—
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency-issued mortgage-backed securities
|
|
6,662,878
|
|
|
310,896
|
|
|
(90
|
)
|
|
6,973,684
|
|
|
—
|
|
|||||
Agency-issued collateralized mortgage obligations —fixed rate
|
|
1,482,205
|
|
|
30,323
|
|
|
(4
|
)
|
|
1,512,524
|
|
|
—
|
|
|||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
170,774
|
|
|
—
|
|
|
(1,652
|
)
|
|
169,122
|
|
|
—
|
|
|||||
Agency-issued commercial mortgage-backed securities
|
|
2,644,968
|
|
|
98,806
|
|
|
(512
|
)
|
|
2,743,262
|
|
|
—
|
|
|||||
Municipal bonds and notes
|
|
2,160,341
|
|
|
105,860
|
|
|
(1,791
|
)
|
|
2,264,410
|
|
|
230
|
|
|||||
Total held-to-maturity securities
|
|
$
|
13,574,519
|
|
|
$
|
560,684
|
|
|
$
|
(4,049
|
)
|
|
$
|
14,131,154
|
|
|
$
|
230
|
|
|
(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.
|
|
|
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 March 31, 2020
|
|
Beginning Balance December 31, 2019
|
|
Day One Impact of adopting ASC 326
|
|
Provision for Credit Losses
|
|
Ending Balance March 31, 2020
|
||||||||
(Dollars in thousands)
|
|
|
|
|
||||||||||||
Municipal bonds and notes
|
|
$
|
—
|
|
|
$
|
174
|
|
|
$
|
56
|
|
|
$
|
230
|
|
Total allowance for credit losses
|
|
$
|
—
|
|
|
$
|
174
|
|
|
$
|
56
|
|
|
$
|
230
|
|
(Dollars in thousands)
|
|
March 31, 2020
|
||
Municipal bonds and notes:
|
|
|
||
Aaa
|
|
$
|
1,458,546
|
|
Aa1
|
|
477,068
|
|
|
Aa2
|
|
223,357
|
|
|
Aa3
|
|
1,370
|
|
|
Total
|
|
$
|
2,160,341
|
|
|
|
March 31, 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
|
|
$
|
453,353
|
|
|
$
|
468,152
|
|
|
$
|
2,622
|
|
|
$
|
2,673
|
|
|
$
|
142,990
|
|
|
$
|
146,270
|
|
|
$
|
307,741
|
|
|
$
|
319,209
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Agency-issued mortgage-backed securities
|
|
6,662,878
|
|
|
6,973,684
|
|
|
11,853
|
|
|
11,983
|
|
|
50,777
|
|
|
51,678
|
|
|
685,374
|
|
|
702,253
|
|
|
5,914,874
|
|
|
6,207,770
|
|
||||||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,482,205
|
|
|
1,512,524
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
661,217
|
|
|
674,788
|
|
|
820,988
|
|
|
837,736
|
|
||||||||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
170,774
|
|
|
169,122
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
170,774
|
|
|
169,122
|
|
||||||||||
Agency-issued commercial mortgage-backed securities
|
|
2,644,968
|
|
|
2,743,262
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,565
|
|
|
118,381
|
|
|
2,542,403
|
|
|
2,624,881
|
|
||||||||||
Municipal bonds and notes
|
|
2,160,341
|
|
|
2,264,410
|
|
|
30,719
|
|
|
30,757
|
|
|
134,007
|
|
|
136,572
|
|
|
441,995
|
|
|
462,836
|
|
|
1,553,620
|
|
|
1,634,245
|
|
||||||||||
Total
|
|
$
|
13,574,519
|
|
|
$
|
14,131,154
|
|
|
$
|
45,194
|
|
|
$
|
45,413
|
|
|
$
|
327,774
|
|
|
$
|
334,520
|
|
|
$
|
2,198,892
|
|
|
$
|
2,277,467
|
|
|
$
|
11,002,659
|
|
|
$
|
11,473,754
|
|
(Dollars in thousands)
|
|
March 31, 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)
|
|
$
|
85,336
|
|
|
$
|
87,180
|
|
Unconsolidated venture capital and private equity fund investments (2)
|
|
171,930
|
|
|
178,217
|
|
||
Other investments without a readily determinable fair value (3)
|
|
52,666
|
|
|
55,255
|
|
||
Other equity securities in public companies (fair value accounting) (4)
|
|
26,899
|
|
|
59,200
|
|
||
Non-marketable securities (equity method accounting) (5):
|
|
|
|
|
||||
Venture capital and private equity fund investments
|
|
206,495
|
|
|
215,367
|
|
||
Debt funds
|
|
6,910
|
|
|
7,271
|
|
||
Other investments
|
|
149,557
|
|
|
152,863
|
|
||
Investments in qualified affordable housing projects, net (6)
|
|
500,802
|
|
|
458,476
|
|
||
Total non-marketable and other equity securities
|
|
$
|
1,200,595
|
|
|
$
|
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 March 31, 2020 and December 31, 2019 (fair value accounting):
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
Strategic Investors Fund, LP
|
|
$
|
5,337
|
|
|
12.6
|
%
|
|
$
|
5,729
|
|
|
12.6
|
%
|
Capital Preferred Return Fund, LP
|
|
44,696
|
|
|
20.0
|
|
|
45,341
|
|
|
20.0
|
|
||
Growth Partners, LP
|
|
35,169
|
|
|
33.0
|
|
|
35,976
|
|
|
33.0
|
|
||
CP I, LP
|
|
134
|
|
|
10.7
|
|
|
134
|
|
|
10.7
|
|
||
Total consolidated venture capital and private equity fund investments
|
|
$
|
85,336
|
|
|
|
|
$
|
87,180
|
|
|
|
(2)
|
The carrying value represents investments in 196 and 205 funds (primarily venture capital funds) at March 31, 2020 and December 31, 2019, respectively, where our ownership interest is typically less than 5% of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships operating activities and financial policies. We carry our unconsolidated venture capital and private equity fund investments at fair value based on the fund investments' net asset values per share as obtained from the general partners of the investments. For each fund investment, we adjust the net asset value per share for differences between our measurement date and the date of the fund investment’s net asset value by using the most recently available financial information from the investee general partner, for example December 31st for our March 31st consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period.
|
(3)
|
These investments include direct equity investments in private companies. The carrying value is based on the price at which the investment was acquired plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, exit strategies, financing transactions subsequent to the acquisition of the investment and a discount for certain investments that have lock-up restrictions or other features that indicate a discount to fair value is warranted.
|
(Dollars in thousands)
|
|
Three months ended March 31, 2020
|
|
Cumulative Adjustments
|
||||
Measurement alternative:
|
|
|
|
|
||||
Carrying value at March 31, 2020
|
|
$
|
52,666
|
|
|
|
||
Carrying value adjustments:
|
|
|
|
|
||||
Impairment
|
|
$
|
—
|
|
|
$
|
(460
|
)
|
Upward changes for observable prices
|
|
12
|
|
|
1,948
|
|
||
Downward changes for observable prices
|
|
(3,012
|
)
|
|
(7,629
|
)
|
(4)
|
Investments classified as other equity securities (fair value accounting) represent shares held in public companies as a result of exercising public equity warrant assets and direct equity investments in public companies held by our consolidated funds. Changes in equity securities measured at fair value are recognized through net income.
|
(5)
|
The following table shows the carrying value and our ownership percentage of each investment at March 31, 2020 and December 31, 2019 (equity method accounting):
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
Venture capital and private equity fund investments:
|
|
|
|
|
|
|
|
|
||||||
Strategic Investors Fund II, LP
|
|
$
|
3,277
|
|
|
8.6
|
%
|
|
$
|
3,612
|
|
|
8.6
|
%
|
Strategic Investors Fund III, LP
|
|
14,487
|
|
|
5.9
|
|
|
15,668
|
|
|
5.9
|
|
||
Strategic Investors Fund IV, LP
|
|
25,037
|
|
|
5.0
|
|
|
27,064
|
|
|
5.0
|
|
||
Strategic Investors Fund V funds
|
|
44,815
|
|
|
Various
|
|
|
46,830
|
|
|
Various
|
|
||
CP II, LP (i)
|
|
5,103
|
|
|
5.1
|
|
|
5,907
|
|
|
5.1
|
|
||
Other venture capital and private equity fund investments
|
|
113,776
|
|
|
Various
|
|
|
116,286
|
|
|
Various
|
|
||
Total venture capital and private equity fund investments
|
|
$
|
206,495
|
|
|
|
|
$
|
215,367
|
|
|
|
||
Debt funds:
|
|
|
|
|
|
|
|
|
||||||
Gold Hill Capital 2008, LP (ii)
|
|
$
|
5,255
|
|
|
15.5
|
%
|
|
$
|
5,525
|
|
|
15.5
|
%
|
Other debt funds
|
|
1,655
|
|
|
Various
|
|
|
1,746
|
|
|
Various
|
|
||
Total debt funds
|
|
$
|
6,910
|
|
|
|
|
$
|
7,271
|
|
|
|
||
Other investments:
|
|
|
|
|
|
|
|
|
||||||
SPD Silicon Valley Bank Co., Ltd.
|
|
$
|
73,453
|
|
|
50.0
|
%
|
|
$
|
74,190
|
|
|
50.0
|
%
|
Other investments
|
|
76,104
|
|
|
Various
|
|
|
78,673
|
|
|
Various
|
|
||
Total other investments
|
|
$
|
149,557
|
|
|
|
|
$
|
152,863
|
|
|
|
|
(i)
|
Our ownership includes direct ownership interest of 1.3 percent and indirect ownership interest of 3.8 percent through our investments in Strategic Investors Fund II, LP.
|
(ii)
|
Our ownership includes direct ownership interest of 11.5 percent 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 March 31, 2020 and December 31, 2019:
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Investments in qualified affordable housing projects, net
|
|
$
|
500,802
|
|
|
$
|
458,476
|
|
Other liabilities
|
|
348,272
|
|
|
302,031
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Tax credits and other tax benefits recognized
|
|
$
|
11,759
|
|
|
$
|
9,257
|
|
Amortization expense included in provision for income taxes (i)
|
|
11,471
|
|
|
7,636
|
|
|
(i)
|
All investments are amortized using the proportional amortization method and amortization expense is included in the provision for income taxes.
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
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
|
|
$
|
3,113
|
|
|
$
|
3,289
|
|
Unconsolidated venture capital and private equity fund investments
|
|
1,252
|
|
|
8,006
|
|
||
Other investments without a readily determinable fair value
|
|
(2,943
|
)
|
|
5,005
|
|
||
Other equity securities in public companies (fair value accounting)
|
|
(7,504
|
)
|
|
11,803
|
|
||
Non-marketable securities (equity method accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments
|
|
(8,046
|
)
|
|
2,789
|
|
||
Debt funds
|
|
(362
|
)
|
|
—
|
|
||
Other investments
|
|
(620
|
)
|
|
1,766
|
|
||
Total net (losses) gains on non-marketable and other equity securities
|
|
$
|
(15,110
|
)
|
|
$
|
32,658
|
|
Less: realized net (losses) gains on sales of non-marketable and other equity securities
|
|
(49
|
)
|
|
9,835
|
|
||
Net (losses) gains on non-marketable and other equity securities still held
|
|
$
|
(15,061
|
)
|
|
$
|
22,823
|
|
7.
|
Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Private equity/venture capital
|
|
$
|
18,868,875
|
|
|
$
|
17,696,794
|
|
Investor dependent:
|
|
|
|
|
||||
Early stage
|
|
1,806,011
|
|
|
1,624,221
|
|
||
Mid stage
|
|
1,399,209
|
|
|
1,047,398
|
|
||
Later stage
|
|
2,031,490
|
|
|
1,663,576
|
|
||
Total investor dependent
|
|
5,236,710
|
|
|
4,335,195
|
|
||
Cash flow dependent:
|
|
|
|
|
||||
Sponsor led buyout
|
|
2,121,007
|
|
|
2,185,497
|
|
||
Other
|
|
2,756,295
|
|
|
2,238,741
|
|
||
Total cash flow dependent
|
|
4,877,302
|
|
|
4,424,238
|
|
||
Private bank (4)
|
|
3,669,295
|
|
|
3,492,269
|
|
||
Balance sheet dependent
|
|
1,850,941
|
|
|
1,286,153
|
|
||
Premium wine (4)
|
|
1,056,927
|
|
|
1,062,264
|
|
||
Other (4)
|
|
408,035
|
|
|
867,723
|
|
||
Total loans (1) (2) (3)
|
|
$
|
35,968,085
|
|
|
$
|
33,164,636
|
|
Allowance for credit losses
|
|
(548,963
|
)
|
|
(304,924
|
)
|
||
Net loans
|
|
$
|
35,419,122
|
|
|
$
|
32,859,712
|
|
|
(1)
|
Total loans at amortized cost is net of unearned income of $169 million and $163 million at March 31, 2020 and December 31, 2019, respectively.
|
(2)
|
Included within our total loan portfolio are credit card loans of $339 million and $395 million at March 31, 2020 and December 31, 2019, respectively.
|
(3)
|
Included within our total loan portfolio are construction loans of $174 million and $183 million at March 31, 2020 and December 31, 2019, respectively.
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Real estate secured loans:
|
|
|
|
|
||||
Private bank:
|
|
|
|
|
||||
Loans for personal residence
|
|
$
|
2,644,842
|
|
|
$
|
2,829,880
|
|
Loans to eligible employees
|
|
416,287
|
|
|
401,396
|
|
||
Home equity lines of credit
|
|
61,749
|
|
|
55,461
|
|
||
Other
|
|
26,591
|
|
|
38,880
|
|
||
Total private bank loans secured by real estate
|
|
$
|
3,149,469
|
|
|
$
|
3,325,617
|
|
Premium wine
|
|
762,460
|
|
|
820,730
|
|
||
Total real estate secured loans
|
|
$
|
3,911,929
|
|
|
$
|
4,146,347
|
|
(Dollars in thousands)
|
|
Pass
|
|
Criticized
|
|
Nonperforming (Nonaccrual)
|
|
Total
|
||||||||
March 31, 2020:
|
|
|
|
|
|
|
|
|
||||||||
Private equity/venture capital
|
|
$
|
18,868,764
|
|
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
18,868,875
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
||||||||
Early stage
|
|
1,588,307
|
|
|
199,290
|
|
|
18,414
|
|
|
1,806,011
|
|
||||
Mid stage
|
|
1,224,481
|
|
|
162,548
|
|
|
12,180
|
|
|
1,399,209
|
|
||||
Later stage
|
|
1,786,063
|
|
|
230,984
|
|
|
14,443
|
|
|
2,031,490
|
|
||||
Total investor dependent
|
|
4,598,851
|
|
|
592,822
|
|
|
45,037
|
|
|
5,236,710
|
|
||||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
||||||||
Sponsor led buyout
|
|
1,952,061
|
|
|
168,946
|
|
|
—
|
|
|
2,121,007
|
|
||||
Other
|
|
2,590,162
|
|
|
166,120
|
|
|
13
|
|
|
2,756,295
|
|
||||
Total cash flow dependent
|
|
4,542,223
|
|
|
335,066
|
|
|
13
|
|
|
4,877,302
|
|
||||
Private bank
|
|
3,639,776
|
|
|
24,662
|
|
|
4,857
|
|
|
3,669,295
|
|
||||
Balance sheet dependent
|
|
1,725,273
|
|
|
125,668
|
|
|
—
|
|
|
1,850,941
|
|
||||
Premium wine
|
|
999,373
|
|
|
56,854
|
|
|
700
|
|
|
1,056,927
|
|
||||
Other
|
|
407,943
|
|
|
92
|
|
|
—
|
|
|
408,035
|
|
||||
Total loans (1)
|
|
$
|
34,782,203
|
|
|
$
|
1,135,275
|
|
|
$
|
50,607
|
|
|
$
|
35,968,085
|
|
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
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
|
|
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
|
|
$
|
167,852
|
|
|
$
|
249,214
|
|
|
$
|
92,652
|
|
|
$
|
41,912
|
|
|
$
|
3,990
|
|
|
$
|
18,241
|
|
|
$
|
18,294,903
|
|
|
$
|
—
|
|
|
$
|
18,868,764
|
|
Criticized
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|
—
|
|
|
111
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total private equity/venture capital
|
|
$
|
167,887
|
|
|
$
|
249,214
|
|
|
$
|
92,652
|
|
|
$
|
41,912
|
|
|
$
|
3,990
|
|
|
$
|
18,241
|
|
|
$
|
18,294,979
|
|
|
$
|
—
|
|
|
$
|
18,868,875
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Early stage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
348,538
|
|
|
$
|
764,930
|
|
|
$
|
260,849
|
|
|
$
|
86,592
|
|
|
$
|
12,760
|
|
|
$
|
3,460
|
|
|
$
|
111,178
|
|
|
$
|
—
|
|
|
$
|
1,588,307
|
|
Criticized
|
|
8,754
|
|
|
83,587
|
|
|
56,641
|
|
|
21,632
|
|
|
5,396
|
|
|
5,868
|
|
|
17,412
|
|
|
—
|
|
|
199,290
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
4,995
|
|
|
8,875
|
|
|
3,337
|
|
|
—
|
|
|
—
|
|
|
1,207
|
|
|
—
|
|
|
18,414
|
|
|||||||||
Total early stage
|
|
$
|
357,292
|
|
|
$
|
853,512
|
|
|
$
|
326,365
|
|
|
$
|
111,561
|
|
|
$
|
18,156
|
|
|
$
|
9,328
|
|
|
$
|
129,797
|
|
|
$
|
—
|
|
|
$
|
1,806,011
|
|
Mid stage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
304,548
|
|
|
$
|
375,482
|
|
|
$
|
267,047
|
|
|
$
|
77,566
|
|
|
$
|
10,772
|
|
|
$
|
3,278
|
|
|
$
|
185,788
|
|
|
$
|
—
|
|
|
$
|
1,224,481
|
|
Criticized
|
|
9,107
|
|
|
54,142
|
|
|
45,109
|
|
|
14,991
|
|
|
11,232
|
|
|
5,024
|
|
|
22,943
|
|
|
—
|
|
|
162,548
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
5,586
|
|
|
6,342
|
|
|
—
|
|
|
—
|
|
|
252
|
|
|
—
|
|
|
12,180
|
|
|||||||||
Total mid stage
|
|
$
|
313,655
|
|
|
$
|
429,624
|
|
|
$
|
317,742
|
|
|
$
|
98,899
|
|
|
$
|
22,004
|
|
|
$
|
8,302
|
|
|
$
|
208,983
|
|
|
$
|
—
|
|
|
$
|
1,399,209
|
|
Later stage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
220,075
|
|
|
$
|
696,219
|
|
|
$
|
259,592
|
|
|
$
|
104,208
|
|
|
$
|
76
|
|
|
$
|
13,203
|
|
|
$
|
492,690
|
|
|
$
|
—
|
|
|
$
|
1,786,063
|
|
Criticized
|
|
20,335
|
|
|
64,324
|
|
|
67,783
|
|
|
24,105
|
|
|
—
|
|
|
1,901
|
|
|
52,536
|
|
|
—
|
|
|
230,984
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
1,521
|
|
|
5,820
|
|
|
4,153
|
|
|
—
|
|
|
—
|
|
|
2,949
|
|
|
—
|
|
|
14,443
|
|
|||||||||
Total later stage
|
|
$
|
240,410
|
|
|
$
|
762,064
|
|
|
$
|
333,195
|
|
|
$
|
132,466
|
|
|
$
|
76
|
|
|
$
|
15,104
|
|
|
$
|
548,175
|
|
|
$
|
—
|
|
|
$
|
2,031,490
|
|
Total investor dependent
|
|
$
|
911,357
|
|
|
$
|
2,045,200
|
|
|
$
|
977,302
|
|
|
$
|
342,926
|
|
|
$
|
40,236
|
|
|
$
|
32,734
|
|
|
$
|
886,955
|
|
|
$
|
—
|
|
|
$
|
5,236,710
|
|
Cash flow dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Sponsor led buyout:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
204,305
|
|
|
$
|
756,752
|
|
|
$
|
436,654
|
|
|
$
|
276,232
|
|
|
$
|
68,412
|
|
|
$
|
19,703
|
|
|
$
|
190,003
|
|
|
$
|
—
|
|
|
$
|
1,952,061
|
|
Criticized
|
|
—
|
|
|
29,696
|
|
|
85,125
|
|
|
32,173
|
|
|
11,979
|
|
|
—
|
|
|
9,973
|
|
|
—
|
|
|
168,946
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total sponsor led buyout
|
|
$
|
204,305
|
|
|
$
|
786,448
|
|
|
$
|
521,779
|
|
|
$
|
308,405
|
|
|
$
|
80,391
|
|
|
$
|
19,703
|
|
|
$
|
199,976
|
|
|
$
|
—
|
|
|
$
|
2,121,007
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
232,375
|
|
|
$
|
710,823
|
|
|
$
|
235,585
|
|
|
$
|
122,748
|
|
|
$
|
43,198
|
|
|
$
|
542
|
|
|
$
|
1,244,891
|
|
|
$
|
—
|
|
|
$
|
2,590,162
|
|
Criticized
|
|
4
|
|
|
16,649
|
|
|
40,183
|
|
|
5,226
|
|
|
63
|
|
|
—
|
|
|
103,995
|
|
|
—
|
|
|
166,120
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
13
|
|
|||||||||
Total other
|
|
$
|
232,379
|
|
|
$
|
727,472
|
|
|
$
|
275,770
|
|
|
$
|
127,974
|
|
|
$
|
43,261
|
|
|
$
|
542
|
|
|
$
|
1,348,897
|
|
|
$
|
—
|
|
|
$
|
2,756,295
|
|
Total cash flow dependent
|
|
$
|
436,684
|
|
|
$
|
1,513,920
|
|
|
$
|
797,549
|
|
|
$
|
436,379
|
|
|
$
|
123,652
|
|
|
$
|
20,245
|
|
|
$
|
1,548,873
|
|
|
$
|
—
|
|
|
$
|
4,877,302
|
|
Private bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
200,593
|
|
|
$
|
1,106,485
|
|
|
$
|
477,055
|
|
|
$
|
472,672
|
|
|
$
|
439,552
|
|
|
$
|
603,906
|
|
|
$
|
276,109
|
|
|
$
|
63,404
|
|
|
$
|
3,639,776
|
|
Criticized
|
|
—
|
|
|
7,381
|
|
|
—
|
|
|
2,416
|
|
|
2,502
|
|
|
11,756
|
|
|
607
|
|
|
—
|
|
|
24,662
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,588
|
|
|
—
|
|
|
1,181
|
|
|
2,088
|
|
|
—
|
|
|
4,857
|
|
|||||||||
Total private bank
|
|
$
|
200,593
|
|
|
$
|
1,113,866
|
|
|
$
|
477,055
|
|
|
$
|
476,676
|
|
|
$
|
442,054
|
|
|
$
|
616,843
|
|
|
$
|
278,804
|
|
|
$
|
63,404
|
|
|
$
|
3,669,295
|
|
Balance sheet dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
136,803
|
|
|
$
|
215,264
|
|
|
$
|
228,831
|
|
|
$
|
48,144
|
|
|
$
|
13,280
|
|
|
$
|
—
|
|
|
$
|
1,082,951
|
|
|
$
|
—
|
|
|
$
|
1,725,273
|
|
Criticized
|
|
—
|
|
|
14,458
|
|
|
3,107
|
|
|
15,970
|
|
|
—
|
|
|
—
|
|
|
92,133
|
|
|
—
|
|
|
125,668
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total balance sheet dependent
|
|
$
|
136,803
|
|
|
$
|
229,722
|
|
|
$
|
231,938
|
|
|
$
|
64,114
|
|
|
$
|
13,280
|
|
|
$
|
—
|
|
|
$
|
1,175,084
|
|
|
$
|
—
|
|
|
$
|
1,850,941
|
|
Premium wine:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
51,487
|
|
|
$
|
238,792
|
|
|
$
|
95,464
|
|
|
$
|
93,055
|
|
|
$
|
84,186
|
|
|
$
|
226,031
|
|
|
$
|
210,358
|
|
|
$
|
—
|
|
|
$
|
999,373
|
|
Criticized
|
|
—
|
|
|
8,437
|
|
|
14,371
|
|
|
361
|
|
|
5,005
|
|
|
6,055
|
|
|
22,625
|
|
|
—
|
|
|
56,854
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
687
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
700
|
|
|||||||||
Total Premium wine
|
|
$
|
51,487
|
|
|
$
|
247,229
|
|
|
$
|
109,835
|
|
|
$
|
93,416
|
|
|
$
|
89,878
|
|
|
$
|
232,086
|
|
|
$
|
232,996
|
|
|
$
|
—
|
|
|
$
|
1,056,927
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
15,595
|
|
|
$
|
211,972
|
|
|
$
|
60,016
|
|
|
$
|
30,963
|
|
|
$
|
60,151
|
|
|
$
|
29,246
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
407,943
|
|
Criticized
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
92
|
|
|||||||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total other
|
|
$
|
15,608
|
|
|
$
|
211,972
|
|
|
$
|
60,016
|
|
|
$
|
30,963
|
|
|
$
|
60,151
|
|
|
$
|
29,246
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
$
|
408,035
|
|
Total loans
|
|
$
|
1,920,419
|
|
|
$
|
5,611,123
|
|
|
$
|
2,746,347
|
|
|
$
|
1,486,386
|
|
|
$
|
773,241
|
|
|
$
|
949,395
|
|
|
$
|
22,417,770
|
|
|
$
|
63,404
|
|
|
$
|
35,968,085
|
|
Three months ended March 31, 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 March 31, 2020
|
||||||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Private equity/venture capital
|
|
$
|
107,285
|
|
|
$
|
(69,888
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,557
|
|
|
$
|
(180
|
)
|
|
$
|
56,774
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Early stage
|
|
26,245
|
|
|
39,911
|
|
|
(10,183
|
)
|
|
1,573
|
|
|
70,214
|
|
|
(571
|
)
|
|
127,189
|
|
|||||||
Mid stage
|
|
15,936
|
|
|
6,963
|
|
|
(9,332
|
)
|
|
3,337
|
|
|
35,145
|
|
|
(87
|
)
|
|
51,962
|
|
|||||||
Later stage
|
|
40,189
|
|
|
24,750
|
|
|
(13,984
|
)
|
|
—
|
|
|
46,038
|
|
|
(443
|
)
|
|
96,550
|
|
|||||||
Total investor dependent
|
|
82,370
|
|
|
71,624
|
|
|
(33,499
|
)
|
|
4,910
|
|
|
151,397
|
|
|
(1,101
|
)
|
|
275,701
|
|
|||||||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sponsor led buyout
|
|
42,939
|
|
|
3,151
|
|
|
(2,624
|
)
|
|
2,845
|
|
|
(4,088
|
)
|
|
(132
|
)
|
|
42,091
|
|
|||||||
Other
|
|
25,159
|
|
|
(3,056
|
)
|
|
—
|
|
|
—
|
|
|
17,438
|
|
|
(125
|
)
|
|
39,416
|
|
|||||||
Total cash flow dependent
|
|
68,098
|
|
|
95
|
|
|
(2,624
|
)
|
|
2,845
|
|
|
13,350
|
|
|
(257
|
)
|
|
81,507
|
|
|||||||
Private bank
|
|
21,551
|
|
|
12,615
|
|
|
(581
|
)
|
|
—
|
|
|
54,490
|
|
|
(280
|
)
|
|
87,795
|
|
|||||||
Balance sheet dependent
|
|
12,722
|
|
|
(1,364
|
)
|
|
—
|
|
|
—
|
|
|
11,951
|
|
|
(74
|
)
|
|
23,235
|
|
|||||||
Premium wine
|
|
5,296
|
|
|
3,650
|
|
|
(192
|
)
|
|
—
|
|
|
3,663
|
|
|
(40
|
)
|
|
12,377
|
|
|||||||
Other
|
|
7,602
|
|
|
8,732
|
|
|
—
|
|
|
—
|
|
|
(5,507
|
)
|
|
747
|
|
|
11,574
|
|
|||||||
Total allowance for credit losses
|
|
$
|
304,924
|
|
|
$
|
25,464
|
|
|
$
|
(36,896
|
)
|
|
$
|
7,755
|
|
|
$
|
248,901
|
|
|
$
|
(1,185
|
)
|
|
$
|
548,963
|
|
Three months ended March 31, 2019
|
|
Beginning Balance December 31, 2018
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for (Reduction of) Credit Losses
|
|
Foreign Currency Translation Adjustments
|
|
Ending Balance March 31, 2019
|
||||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
||||||||||||||||||
Private equity/venture capital
|
|
$
|
93,781
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,483
|
|
|
$
|
47
|
|
|
$
|
95,311
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Early stage
|
|
25,885
|
|
|
(1,668
|
)
|
|
568
|
|
|
1,886
|
|
|
59
|
|
|
26,730
|
|
||||||
Mid stage
|
|
20,999
|
|
|
(6,516
|
)
|
|
3
|
|
|
22,957
|
|
|
720
|
|
|
38,163
|
|
||||||
Later stage
|
|
25,217
|
|
|
—
|
|
|
644
|
|
|
4,171
|
|
|
131
|
|
|
30,163
|
|
||||||
Total investor dependent
|
|
72,101
|
|
|
(8,184
|
)
|
|
1,215
|
|
|
29,014
|
|
|
910
|
|
|
95,056
|
|
||||||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sponsor led buyout
|
|
44,274
|
|
|
—
|
|
|
—
|
|
|
(3,239
|
)
|
|
(102
|
)
|
|
40,933
|
|
||||||
Other
|
|
21,754
|
|
|
(716
|
)
|
|
—
|
|
|
(508
|
)
|
|
(16
|
)
|
|
20,514
|
|
||||||
Total cash flow dependent
|
|
66,028
|
|
|
(716
|
)
|
|
—
|
|
|
(3,747
|
)
|
|
(118
|
)
|
|
61,447
|
|
||||||
Private Bank
|
|
20,583
|
|
|
(59
|
)
|
|
210
|
|
|
(746
|
)
|
|
(24
|
)
|
|
19,964
|
|
||||||
Balance sheet dependent
|
|
21,707
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
(2
|
)
|
|
21,632
|
|
||||||
Premium wine
|
|
3,646
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|
9
|
|
|
3,949
|
|
||||||
Other
|
|
3,057
|
|
|
(41
|
)
|
|
—
|
|
|
(404
|
)
|
|
180
|
|
|
2,792
|
|
||||||
Total allowance for credit losses
|
|
$
|
280,903
|
|
|
$
|
(9,000
|
)
|
|
$
|
1,425
|
|
|
$
|
25,821
|
|
|
$
|
1,002
|
|
|
$
|
300,151
|
|
(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
|
||||||||||||||
March 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Private equity/venture capital
|
|
$
|
165,904
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
165,927
|
|
|
$
|
18,702,948
|
|
|
$
|
18,868,875
|
|
|
$
|
—
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Early stage
|
|
8,750
|
|
|
1,231
|
|
|
3,487
|
|
|
13,468
|
|
|
1,792,543
|
|
|
1,806,011
|
|
|
1,499
|
|
|||||||
Mid stage
|
|
5,556
|
|
|
192
|
|
|
1,667
|
|
|
7,415
|
|
|
1,391,794
|
|
|
1,399,209
|
|
|
1,667
|
|
|||||||
Later stage
|
|
9,910
|
|
|
5,500
|
|
|
—
|
|
|
15,410
|
|
|
2,016,080
|
|
|
2,031,490
|
|
|
—
|
|
|||||||
Total investor dependent
|
|
24,216
|
|
|
6,923
|
|
|
5,154
|
|
|
36,293
|
|
|
5,200,417
|
|
|
5,236,710
|
|
|
3,166
|
|
|||||||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sponsor led buyout
|
|
165
|
|
|
—
|
|
|
—
|
|
|
165
|
|
|
2,120,842
|
|
|
2,121,007
|
|
|
—
|
|
|||||||
Other
|
|
1,186
|
|
|
722
|
|
|
—
|
|
|
1,908
|
|
|
2,754,387
|
|
|
2,756,295
|
|
|
—
|
|
|||||||
Total cash flow dependent
|
|
1,351
|
|
|
722
|
|
|
—
|
|
|
2,073
|
|
|
4,875,229
|
|
|
4,877,302
|
|
|
—
|
|
|||||||
Private bank
|
|
6,730
|
|
|
—
|
|
|
4,522
|
|
|
11,252
|
|
|
3,658,043
|
|
|
3,669,295
|
|
|
1,752
|
|
|||||||
Balance sheet dependent
|
|
3,261
|
|
|
3,087
|
|
|
—
|
|
|
6,348
|
|
|
1,844,593
|
|
|
1,850,941
|
|
|
—
|
|
|||||||
Premium wine
|
|
10,438
|
|
|
21,001
|
|
|
—
|
|
|
31,439
|
|
|
1,025,488
|
|
|
1,056,927
|
|
|
—
|
|
|||||||
Other
|
|
677
|
|
|
—
|
|
|
—
|
|
|
677
|
|
|
407,358
|
|
|
408,035
|
|
|
—
|
|
|||||||
Total loans (1)
|
|
$
|
212,577
|
|
|
$
|
31,756
|
|
|
$
|
9,676
|
|
|
$
|
254,009
|
|
|
$
|
35,714,076
|
|
|
$
|
35,968,085
|
|
|
$
|
4,918
|
|
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
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
Three months ended March 31, 2020
|
|
Beginning Balance December 31, 2019
|
|
Additions
|
|
Paydowns and Other Reductions
|
|
Charge-offs
|
|
Ending Balance
March 31,
2020
|
||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|||||||||||||||
Private equity/venture capital
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Early stage
|
|
11,093
|
|
|
12,343
|
|
|
(2,764
|
)
|
|
(2,258
|
)
|
|
18,414
|
|
|||||
Mid stage
|
|
17,330
|
|
|
12,091
|
|
|
(388
|
)
|
|
(16,853
|
)
|
|
12,180
|
|
|||||
Later stage
|
|
6,296
|
|
|
11,224
|
|
|
128
|
|
|
(3,205
|
)
|
|
14,443
|
|
|||||
Total investor dependent
|
|
34,719
|
|
|
35,658
|
|
|
(3,024
|
)
|
|
(22,316
|
)
|
|
45,037
|
|
|||||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sponsor led buyout
|
|
44,585
|
|
|
—
|
|
|
(41,961
|
)
|
|
(2,624
|
)
|
|
—
|
|
|||||
Other
|
|
17,681
|
|
|
—
|
|
|
(17,650
|
)
|
|
(18
|
)
|
|
13
|
|
|||||
Total cash flow dependent
|
|
62,266
|
|
|
—
|
|
|
(59,611
|
)
|
|
(2,642
|
)
|
|
13
|
|
|||||
Private bank
|
|
5,480
|
|
|
—
|
|
|
(42
|
)
|
|
(581
|
)
|
|
4,857
|
|
|||||
Balance sheet dependent
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Premium wine
|
|
204
|
|
|
688
|
|
|
—
|
|
|
(192
|
)
|
|
700
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonaccrual loans (1)
|
|
$
|
102,669
|
|
|
$
|
36,346
|
|
|
$
|
(62,677
|
)
|
|
$
|
(25,731
|
)
|
|
$
|
50,607
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
Three months ended March 31, 2019
|
|
Beginning Balance December 31, 2018
|
|
Additions
|
|
Paydowns and Other Reductions
|
|
Charge-offs
|
|
Ending Balance March 31, 2019
|
||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|||||||||||||||
Private equity/venture capital
|
|
$
|
3,700
|
|
|
$
|
2,247
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,947
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Early stage
|
|
7,616
|
|
|
4,433
|
|
|
(3,212
|
)
|
|
(140
|
)
|
|
8,697
|
|
|||||
Mid stage
|
|
4,751
|
|
|
32,099
|
|
|
(521
|
)
|
|
(4,230
|
)
|
|
32,099
|
|
|||||
Later stage
|
|
11,385
|
|
|
12,063
|
|
|
(308
|
)
|
|
—
|
|
|
23,140
|
|
|||||
Total investor dependent
|
|
23,752
|
|
|
48,595
|
|
|
(4,041
|
)
|
|
(4,370
|
)
|
|
63,936
|
|
|||||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sponsor led buyout
|
|
39,534
|
|
|
—
|
|
|
(1,297
|
)
|
|
—
|
|
|
38,237
|
|
|||||
Other
|
|
17,156
|
|
|
—
|
|
|
—
|
|
|
(466
|
)
|
|
16,690
|
|
|||||
Total cash flow dependent
|
|
56,690
|
|
|
—
|
|
|
(1,297
|
)
|
|
(466
|
)
|
|
54,927
|
|
|||||
Private bank
|
|
3,919
|
|
|
15
|
|
|
(66
|
)
|
|
(59
|
)
|
|
3,809
|
|
|||||
Balance sheet dependent
|
|
5,004
|
|
|
—
|
|
|
(268
|
)
|
|
—
|
|
|
4,736
|
|
|||||
Premium wine
|
|
285
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
268
|
|
|||||
Other
|
|
792
|
|
|
—
|
|
|
(792
|
)
|
|
—
|
|
|
—
|
|
|||||
Total nonaccrual loans (1)
|
|
$
|
94,142
|
|
|
$
|
50,857
|
|
|
$
|
(6,481
|
)
|
|
$
|
(4,895
|
)
|
|
$
|
133,623
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
|
|
March 31, 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
|
||||||||
Private equity/venture capital
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
||||||||
Early stage
|
|
18,414
|
|
|
1,562
|
|
|
11,093
|
|
|
460
|
|
||||
Mid stage
|
|
12,180
|
|
|
261
|
|
|
17,330
|
|
|
274
|
|
||||
Later stage
|
|
14,443
|
|
|
1,807
|
|
|
6,296
|
|
|
—
|
|
||||
Total investor dependent
|
|
45,037
|
|
|
3,630
|
|
|
34,719
|
|
|
734
|
|
||||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
||||||||
Sponsor led buyout
|
|
—
|
|
|
—
|
|
|
44,585
|
|
|
—
|
|
||||
Other
|
|
13
|
|
|
—
|
|
|
17,681
|
|
|
2,782
|
|
||||
Total cash flow dependent
|
|
13
|
|
|
—
|
|
|
62,266
|
|
|
2,782
|
|
||||
Private bank
|
|
4,857
|
|
|
3,269
|
|
|
5,480
|
|
|
3,714
|
|
||||
Balance sheet dependent
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Premium wine
|
|
700
|
|
|
—
|
|
|
204
|
|
|
—
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total nonaccrual loans (1)
|
|
$
|
50,607
|
|
|
$
|
6,899
|
|
|
$
|
102,669
|
|
|
$
|
7,230
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Loans modified in TDRs:
|
|
|
|
|
||||
Private equity/venture capital
|
|
$
|
—
|
|
|
$
|
—
|
|
Investor dependent
|
|
|
|
|
||||
Early stage
|
|
7,350
|
|
|
9,471
|
|
||
Mid stage
|
|
5,955
|
|
|
5,189
|
|
||
Later stage
|
|
8,272
|
|
|
23,318
|
|
||
Total investor dependent
|
|
21,577
|
|
|
37,978
|
|
||
Cash flow dependent
|
|
|
|
|
||||
Sponsor led buyout
|
|
10,350
|
|
|
55,443
|
|
||
Other
|
|
—
|
|
|
—
|
|
||
Total cash flow dependent
|
|
10,350
|
|
|
55,443
|
|
||
Private bank
|
|
1,351
|
|
|
2,104
|
|
||
Balance sheet dependent
|
|
—
|
|
|
—
|
|
||
Premium wine
|
|
8,934
|
|
|
13,457
|
|
||
Other
|
|
—
|
|
|
—
|
|
||
Total loans modified in TDRs (1)
|
|
$
|
42,212
|
|
|
$
|
108,982
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Loans modified in TDRs during the period:
|
|
|
|
|
||||
Private equity/venture capital
|
|
$
|
—
|
|
|
$
|
—
|
|
Investor dependent
|
|
|
|
|
||||
Early stage
|
|
—
|
|
|
677
|
|
||
Mid stage
|
|
5,955
|
|
|
—
|
|
||
Later stage
|
|
2,769
|
|
|
—
|
|
||
Total investor dependent
|
|
8,724
|
|
|
677
|
|
||
Cash flow dependent
|
|
|
|
|
||||
Sponsor led buyout
|
|
—
|
|
|
—
|
|
||
Other
|
|
—
|
|
|
5,000
|
|
||
Total cash flow dependent
|
|
—
|
|
|
5,000
|
|
||
Private bank
|
|
—
|
|
|
—
|
|
||
Balance sheet dependent
|
|
—
|
|
|
—
|
|
||
Premium wine
|
|
—
|
|
|
—
|
|
||
Other
|
|
—
|
|
|
—
|
|
||
Total loans modified in TDRs during the period (1) (2)
|
|
$
|
8,724
|
|
|
$
|
5,677
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
(2)
|
There were $12.5 million and $2.2 million of partial charge-offs for the three months ended March 31, 2020 and March 31, 2019, respectively.
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
TDRs modified within the previous 12 months that defaulted during the period:
|
|
|
|
|
||||
Private equity/venture capital
|
|
$
|
—
|
|
|
$
|
—
|
|
Investor dependent
|
|
|
|
|
||||
Early stage
|
|
—
|
|
|
—
|
|
||
Mid stage
|
|
—
|
|
|
—
|
|
||
Later stage
|
|
—
|
|
|
—
|
|
||
Total investor dependent
|
|
—
|
|
|
—
|
|
||
Cash flow dependent
|
|
|
|
|
||||
Sponsor led buyout
|
|
—
|
|
|
—
|
|
||
Other
|
|
—
|
|
|
5,000
|
|
||
Total cash flow dependent
|
|
—
|
|
|
5,000
|
|
||
Private bank
|
|
—
|
|
|
—
|
|
||
Balance sheet dependent
|
|
—
|
|
|
—
|
|
||
Premium wine
|
|
8,247
|
|
|
—
|
|
||
Other
|
|
—
|
|
|
—
|
|
||
Total TDRs modified within the previous 12 months that defaulted in the period (1)
|
|
$
|
8,247
|
|
|
$
|
5,000
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Allowance for credit losses: unfunded credit commitments, beginning balance
|
|
$
|
67,656
|
|
|
$
|
55,183
|
|
Impact of adopting ASC 326
|
|
22,826
|
|
|
—
|
|
||
(Reduction of) provision for credit losses
|
|
(5,477
|
)
|
|
2,730
|
|
||
Foreign currency translation adjustments
|
|
(315
|
)
|
|
57
|
|
||
Allowance for credit losses: unfunded credit commitments, ending balance (1)
|
|
$
|
84,690
|
|
|
$
|
57,970
|
|
|
(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)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Assets:
|
|
|
|
|
||||
Right-of-use assets - operating leases
|
|
$
|
206,392
|
|
|
$
|
197,365
|
|
Liabilities:
|
|
|
|
|
||||
Lease liabilities - operating leases
|
|
227,271
|
|
|
218,847
|
|
(Dollars in thousands)
|
|
Three months ended March 31, 2020
|
|
Three months ended March 31, 2019
|
||||
Operating lease cost
|
|
$
|
11,364
|
|
|
$
|
9,518
|
|
Short-term lease cost
|
|
339
|
|
|
263
|
|
||
Variable lease cost
|
|
595
|
|
|
846
|
|
||
Less: sublease income
|
|
(1,132
|
)
|
|
(1,108
|
)
|
||
Total lease cost, net
|
|
$
|
11,166
|
|
|
$
|
9,519
|
|
Supplemental cash flows information:
|
|
|
|
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
|
||||
Cash paid for operating leases
|
|
$
|
12,221
|
|
|
10,354
|
|
|
Noncash items during the period:
|
|
|
|
|
||||
Lease obligations in exchange for obtaining Right-of-use assets
|
|
|
|
|
||||
Operating leases
|
|
$
|
21,613
|
|
|
—
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||
Weighted-average remaining term (in years) - operating leases
|
|
6.27
|
|
|
6.29
|
|
Weighted-average discount rate - operating leases (1)
|
|
2.83
|
%
|
|
2.92
|
%
|
|
(1)
|
The incremental borrowing rate used to calculate the lease liability was determined based on the facts and circumstances of the economic environment and the Company’s credit standing as of the effective date of ASC 842. Additionally, the total lease term and total lease payments were also considered in determining the rate. Based on these considerations the Company identified credit terms available under its existing credit lines which represent a collateralized borrowing rate that has varying credit terms that could be matched to total lease terms and total lease payments in ultimately determining the implied borrowing rate in each lease contract.
|
Years ended December 31,
(Dollars in thousands)
|
|
Operating Leases
|
||
2020 (excluding the three months ended March 31, 2020)
|
|
$
|
34,310
|
|
2021
|
|
44,228
|
|
|
2022
|
|
39,196
|
|
|
2023
|
|
38,429
|
|
|
2024
|
|
32,712
|
|
|
2025 and thereafter
|
|
60,124
|
|
|
Total future lease payments (1)
|
|
$
|
248,999
|
|
Less: imputed interest
|
|
(21,728
|
)
|
|
Total lease liabilities
|
|
$
|
227,271
|
|
|
(1)
|
As of March 31, 2020, we have additional leases that have not yet commenced. We estimate that we will record additional lease liabilities of $18.8 million upon commencement. These leases will commence in 2020 with lease terms of five years.
|
9.
|
Goodwill and Other Intangible Assets
|
|
|
March 31, 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
|
|
|
$
|
4,773
|
|
|
$
|
37,227
|
|
|
$
|
42,000
|
|
|
$
|
3,818
|
|
|
$
|
38,182
|
|
Other
|
|
18,900
|
|
|
8,055
|
|
|
10,845
|
|
|
18,900
|
|
|
7,665
|
|
|
11,235
|
|
||||||
Total other intangible assets
|
|
$
|
60,900
|
|
|
$
|
12,828
|
|
|
$
|
48,072
|
|
|
$
|
60,900
|
|
|
$
|
11,483
|
|
|
$
|
49,417
|
|
Years ended December 31,
(Dollars in thousands)
|
|
Other
Intangible Assets
|
||
2020 (excluding the three months ended March 31, 2020)
|
|
$
|
4,037
|
|
2021
|
|
4,732
|
|
|
2022
|
|
4,732
|
|
|
2023
|
|
4,732
|
|
|
2024
|
|
4,732
|
|
|
2025 and thereafter
|
|
25,107
|
|
|
Total future amortization expense
|
|
$
|
48,072
|
|
10.
|
Short-Term Borrowings and Long-Term Debt
|
|
|
|
|
|
|
Carrying Value
|
||||||||
(Dollars in thousands)
|
|
Maturity
|
|
Principal value at March 31, 2020
|
|
March 31,
2020 |
|
December 31,
2019 |
||||||
Short-term borrowings:
|
|
|
|
|
|
|
|
|
||||||
Short-term FHLB advances
|
|
(1)
|
|
$
|
2,700,000
|
|
|
$
|
2,700,000
|
|
|
$
|
—
|
|
Federal funds purchased
|
|
April 1, 2020
|
|
375,000
|
|
|
375,000
|
|
|
—
|
|
|||
Other short-term borrowings
|
|
(2)
|
|
63,162
|
|
|
63,162
|
|
|
17,430
|
|
|||
Total short-term borrowings
|
|
|
|
|
|
$
|
3,138,162
|
|
|
$
|
17,430
|
|
||
Long-term debt:
|
|
|
|
|
|
|
|
|
||||||
3.50% Senior Notes
|
|
January 29, 2025
|
|
$
|
350,000
|
|
|
$
|
348,076
|
|
|
$
|
347,987
|
|
Total long-term debt
|
|
|
|
|
|
$
|
348,076
|
|
|
$
|
347,987
|
|
|
(1)
|
Represents advances from the FHLB at March 31, 2020 with maturity dates through May 7, 2020.
|
(2)
|
Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor.
|
11.
|
Derivative Financial Instruments
|
|
|
March 31, 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
|
|
330,045
|
|
|
5,928
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Foreign exchange forwards
|
|
158,592
|
|
|
—
|
|
|
2,751
|
|
|
300,250
|
|
|
—
|
|
|
2,154
|
|
||||||
Other derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity warrant assets
|
|
235,074
|
|
|
152,710
|
|
|
—
|
|
|
225,893
|
|
|
165,473
|
|
|
—
|
|
||||||
Client foreign exchange forwards
|
|
6,914,487
|
|
|
226,621
|
|
|
—
|
|
|
4,661,517
|
|
|
114,546
|
|
|
—
|
|
||||||
Client foreign exchange forwards
|
|
5,720,213
|
|
|
—
|
|
|
186,417
|
|
|
4,326,059
|
|
|
—
|
|
|
94,745
|
|
||||||
Client foreign currency options
|
|
237,349
|
|
|
6,723
|
|
|
—
|
|
|
154,985
|
|
|
1,308
|
|
|
—
|
|
||||||
Client foreign currency options
|
|
237,349
|
|
|
—
|
|
|
6,723
|
|
|
154,985
|
|
|
—
|
|
|
1,308
|
|
||||||
Client interest rate derivatives
|
|
747,228
|
|
|
80,543
|
|
|
—
|
|
|
1,275,190
|
|
|
28,811
|
|
|
—
|
|
||||||
Client interest rate derivatives (2)
|
|
829,528
|
|
|
—
|
|
|
31,533
|
|
|
1,372,914
|
|
|
—
|
|
|
14,154
|
|
||||||
Total derivatives not designated as hedging instruments
|
|
|
|
472,525
|
|
|
227,424
|
|
|
|
|
310,138
|
|
|
112,361
|
|
||||||||
Total derivatives
|
|
|
|
$
|
472,525
|
|
|
$
|
227,424
|
|
|
|
|
$
|
332,814
|
|
|
$
|
137,984
|
|
|
(1)
|
Derivative assets and liabilities are included in "accrued interest receivable and other assets" and "other liabilities", respectively, on our consolidated balance sheets.
|
(2)
|
The amount reported reflects reductions of approximately $55.7 million and $17.4 million of derivative liabilities at March 31, 2020 and December 31, 2019, respectively, reflecting variation margin treated as settlement of the related derivative fair values for legal and accounting purposes as required by central clearing houses.
|
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
Statement of income location
|
|
2020
|
|
2019
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
||||
Interest rate risks:
|
|
|
|
|
|
|
||||
Amounts reclassified from accumulated other comprehensive income into income
|
|
Interest income—loans
|
|
$
|
2,089
|
|
|
$
|
(3
|
)
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
||||
Currency exchange risks:
|
|
|
|
|
|
|
||||
(Losses) gains on revaluations of internal foreign currency instruments, net
|
|
Other noninterest income
|
|
$
|
(8,375
|
)
|
|
$
|
1,050
|
|
Gains (losses) on internal foreign exchange forward contracts, net
|
|
Other noninterest income
|
|
8,668
|
|
|
(469
|
)
|
||
Net gains associated with internal currency risk
|
|
|
|
$
|
293
|
|
|
$
|
581
|
|
Other derivative instruments:
|
|
|
|
|
|
|
||||
Losses on revaluations of client foreign currency instruments, net
|
|
Other noninterest income
|
|
$
|
(8,284
|
)
|
|
$
|
(13,571
|
)
|
Gains on client foreign exchange forward contracts, net
|
|
Other noninterest income
|
|
7,747
|
|
|
12,654
|
|
||
Net losses associated with client currency risk
|
|
|
|
$
|
(537
|
)
|
|
$
|
(917
|
)
|
Net gains on equity warrant assets
|
|
Gains on equity warrant assets, net
|
|
$
|
13,395
|
|
|
$
|
21,305
|
|
Net losses on other derivatives
|
|
Other noninterest income
|
|
$
|
(4,345
|
)
|
|
$
|
(365
|
)
|
|
|
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)
|
|
||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange forwards
|
|
232,549
|
|
|
—
|
|
|
232,549
|
|
|
(76,009
|
)
|
|
(59,693
|
)
|
|
96,847
|
|
||||||
Foreign currency options
|
|
6,723
|
|
|
—
|
|
|
6,723
|
|
|
(2,016
|
)
|
|
(3,469
|
)
|
|
1,238
|
|
||||||
Client interest rate derivatives
|
|
80,543
|
|
|
—
|
|
|
80,543
|
|
|
(80,543
|
)
|
|
—
|
|
|
—
|
|
||||||
Total derivative assets
|
|
319,815
|
|
|
—
|
|
|
319,815
|
|
|
(158,568
|
)
|
|
(63,162
|
)
|
|
98,085
|
|
||||||
Reverse repurchase, securities borrowing, and similar arrangements
|
|
401,758
|
|
|
—
|
|
|
401,758
|
|
|
(401,758
|
)
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
721,573
|
|
|
$
|
—
|
|
|
$
|
721,573
|
|
|
$
|
(560,326
|
)
|
|
$
|
(63,162
|
)
|
|
$
|
98,085
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
22,676
|
|
|
$
|
—
|
|
|
$
|
22,676
|
|
|
$
|
(22,598
|
)
|
|
$
|
—
|
|
|
$
|
78
|
|
Foreign exchange forwards
|
|
$
|
114,546
|
|
|
$
|
—
|
|
|
$
|
114,546
|
|
|
$
|
(36,855
|
)
|
|
$
|
(17,095
|
)
|
|
$
|
60,596
|
|
Foreign currency options
|
|
1,308
|
|
|
—
|
|
|
1,308
|
|
|
(848
|
)
|
|
(335
|
)
|
|
125
|
|
||||||
Client interest rate derivatives
|
|
28,811
|
|
|
—
|
|
|
28,811
|
|
|
(28,811
|
)
|
|
—
|
|
|
—
|
|
||||||
Total derivative assets
|
|
167,341
|
|
|
—
|
|
|
167,341
|
|
|
(89,112
|
)
|
|
(17,430
|
)
|
|
60,799
|
|
||||||
Reverse repurchase, securities borrowing, and similar arrangements
|
|
289,340
|
|
|
—
|
|
|
289,340
|
|
|
(289,340
|
)
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
456,681
|
|
|
$
|
—
|
|
|
$
|
456,681
|
|
|
$
|
(378,452
|
)
|
|
$
|
(17,430
|
)
|
|
$
|
60,799
|
|
|
(1)
|
Cash collateral received from our counterparties in relation to market value exposures of derivative contracts in our favor is recorded as a component of “short-term borrowings” on our consolidated balance sheets.
|
|
|
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)
|
|
||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange forwards
|
|
189,168
|
|
|
—
|
|
|
189,168
|
|
|
(68,027
|
)
|
|
(7,442
|
)
|
|
113,699
|
|
||||||
Foreign currency options
|
|
6,723
|
|
|
—
|
|
|
6,723
|
|
|
(2,009
|
)
|
|
—
|
|
|
4,714
|
|
||||||
Client interest rate derivatives
|
|
31,533
|
|
|
—
|
|
|
31,533
|
|
|
—
|
|
|
(31,085
|
)
|
|
448
|
|
||||||
Total derivative liabilities
|
|
227,424
|
|
|
—
|
|
|
227,424
|
|
|
(70,036
|
)
|
|
(38,527
|
)
|
|
118,861
|
|
||||||
Repurchase, securities lending, and similar arrangements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
227,424
|
|
|
$
|
—
|
|
|
$
|
227,424
|
|
|
$
|
(70,036
|
)
|
|
$
|
(38,527
|
)
|
|
$
|
118,861
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
25,623
|
|
|
—
|
|
|
25,623
|
|
|
(22,676
|
)
|
|
(2,947
|
)
|
|
—
|
|
||||||
Foreign exchange forwards
|
|
96,899
|
|
|
—
|
|
|
96,899
|
|
|
(33,314
|
)
|
|
(22,030
|
)
|
|
41,555
|
|
||||||
Foreign currency options
|
|
1,308
|
|
|
—
|
|
|
1,308
|
|
|
(531
|
)
|
|
—
|
|
|
777
|
|
||||||
Client interest rate derivatives
|
|
14,154
|
|
|
—
|
|
|
14,154
|
|
|
—
|
|
|
(13,936
|
)
|
|
218
|
|
||||||
Total derivative liabilities
|
|
137,984
|
|
|
—
|
|
|
137,984
|
|
|
(56,521
|
)
|
|
(38,913
|
)
|
|
42,550
|
|
||||||
Repurchase, securities lending, and similar arrangements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
137,984
|
|
|
$
|
—
|
|
|
$
|
137,984
|
|
|
$
|
(56,521
|
)
|
|
$
|
(38,913
|
)
|
|
$
|
42,550
|
|
|
(1)
|
Cash collateral pledged to our counterparties in relation to market value exposures of derivative contracts in a liability position and repurchase agreements are recorded as a component of “cash and cash equivalents" on our consolidated balance sheets.
|
12.
|
Noninterest Income
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Noninterest income:
|
|
|
|
|
||||
Gains on investment securities, net
|
|
$
|
46,055
|
|
|
$
|
29,028
|
|
Gains on equity warrant assets, net
|
|
13,395
|
|
|
21,305
|
|
||
Client investment fees
|
|
43,393
|
|
|
44,482
|
|
||
Foreign exchange fees
|
|
47,505
|
|
|
38,048
|
|
||
Credit card fees
|
|
28,304
|
|
|
27,483
|
|
||
Deposit service charges
|
|
24,589
|
|
|
20,939
|
|
||
Lending related fees
|
|
13,125
|
|
|
13,937
|
|
||
Letters of credit and standby letters of credit fees
|
|
11,542
|
|
|
9,354
|
|
||
Investment banking revenue
|
|
46,867
|
|
|
49,795
|
|
||
Commissions
|
|
16,022
|
|
|
14,108
|
|
||
Other
|
|
11,137
|
|
|
11,897
|
|
||
Total noninterest income
|
|
$
|
301,934
|
|
|
$
|
280,376
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
(Losses) gains on non-marketable and other equity securities, net
|
|
$
|
(15,110
|
)
|
|
$
|
32,658
|
|
Gains (losses) on sales of available-for-sale securities, net
|
|
61,165
|
|
|
(3,630
|
)
|
||
Total gains on investment securities, net
|
|
$
|
46,055
|
|
|
$
|
29,028
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Equity warrant assets:
|
|
|
|
|
||||
Gains on exercises, net
|
|
$
|
19,193
|
|
|
$
|
5,482
|
|
Terminations
|
|
(326
|
)
|
|
(415
|
)
|
||
Changes in fair value, net
|
|
(5,472
|
)
|
|
16,238
|
|
||
Total net gains on equity warrant assets
|
|
$
|
13,395
|
|
|
$
|
21,305
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Client investment fees by type:
|
|
|
|
|
||||
Sweep money market fees
|
|
$
|
23,049
|
|
|
$
|
26,544
|
|
Asset management fees (1)
|
|
9,137
|
|
|
6,671
|
|
||
Repurchase agreement fees
|
|
11,207
|
|
|
11,267
|
|
||
Total client investment fees (2)
|
|
$
|
43,393
|
|
|
$
|
44,482
|
|
|
(1)
|
Represents fees earned from investments in third-party money market mutual funds and fixed-income securities managed by SVB Asset Management.
|
(2)
|
Represents fees earned on client investment funds which are maintained at third-party financial institutions and are not recorded on our balance sheet.
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Foreign exchange fees by instrument type:
|
|
|
|
|
||||
Spot contract commissions
|
|
$
|
40,934
|
|
|
$
|
35,029
|
|
Forward contract commissions
|
|
6,339
|
|
|
2,995
|
|
||
Option premium fees
|
|
232
|
|
|
24
|
|
||
Total foreign exchange fees
|
|
$
|
47,505
|
|
|
$
|
38,048
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Credit card fees by instrument type:
|
|
|
|
|
||||
Card interchange fees, net
|
|
$
|
21,775
|
|
|
$
|
21,393
|
|
Merchant service fees
|
|
5,027
|
|
|
4,534
|
|
||
Card service fees
|
|
1,502
|
|
|
1,556
|
|
||
Total credit card fees
|
|
$
|
28,304
|
|
|
$
|
27,483
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Lending related fees by instrument type:
|
|
|
|
|
||||
Unused commitment fees
|
|
$
|
8,406
|
|
|
$
|
9,670
|
|
Other
|
|
4,719
|
|
|
4,267
|
|
||
Total lending related fees
|
|
$
|
13,125
|
|
|
$
|
13,937
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Investment banking revenue:
|
|
|
|
|
||||
Underwriting fees
|
|
$
|
31,290
|
|
|
$
|
35,772
|
|
Advisory fees
|
|
15,487
|
|
|
12,273
|
|
||
Private placements and other
|
|
90
|
|
|
1,750
|
|
||
Total investment banking revenue
|
|
$
|
46,867
|
|
|
$
|
49,795
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Other noninterest income by instrument type:
|
|
|
|
|
||||
Fund management fees
|
|
$
|
7,908
|
|
|
$
|
8,041
|
|
Net losses on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1)
|
|
(244
|
)
|
|
(336
|
)
|
||
Other service revenue
|
|
3,473
|
|
|
4,192
|
|
||
Total other noninterest income
|
|
$
|
11,137
|
|
|
$
|
11,897
|
|
|
(1)
|
Represents the net revaluation of client and internal foreign currency denominated financial instruments. We enter into foreign exchange forward contracts to economically reduce our foreign exchange exposure related to client and internal foreign currency denominated financial instruments.
|
Three months ended March 31, 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
|
|
$
|
42,736
|
|
|
$
|
657
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,393
|
|
Spot contract commissions
|
|
40,675
|
|
|
161
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
40,934
|
|
||||||
Card interchange fees, gross
|
|
35,724
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
566
|
|
|
36,297
|
|
||||||
Merchant service fees
|
|
5,027
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,027
|
|
||||||
Deposit service charges
|
|
24,238
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
324
|
|
|
24,589
|
|
||||||
Investment banking revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,867
|
|
|
—
|
|
|
46,867
|
|
||||||
Commissions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,022
|
|
|
—
|
|
|
16,022
|
|
||||||
Fund management fees
|
|
—
|
|
|
—
|
|
|
6,478
|
|
|
1,430
|
|
|
—
|
|
|
7,908
|
|
||||||
Correspondent bank rebates
|
|
1,403
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,403
|
|
||||||
Total revenue from contracts with customers
|
|
$
|
149,803
|
|
|
$
|
852
|
|
|
$
|
6,478
|
|
|
$
|
64,319
|
|
|
$
|
988
|
|
|
$
|
222,440
|
|
Revenues outside the scope of ASC 606 (1)
|
|
17,031
|
|
|
48
|
|
|
(1,560
|
)
|
|
(1,642
|
)
|
|
65,617
|
|
|
79,494
|
|
||||||
Total noninterest income
|
|
$
|
166,834
|
|
|
$
|
900
|
|
|
$
|
4,918
|
|
|
$
|
62,677
|
|
|
$
|
66,605
|
|
|
$
|
301,934
|
|
|
(1)
|
Amounts are accounted for under separate guidance than ASC 606.
|
(2)
|
Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
|
Three months ended March 31, 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)
|
|
$
|
44,102
|
|
|
$
|
380
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44,482
|
|
Spot contract commissions
|
|
34,806
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
35,029
|
|
||||||
Card interchange fees, gross
|
|
38,715
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|
38,862
|
|
||||||
Merchant service fees
|
|
4,534
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,534
|
|
||||||
Deposit service charges
|
|
20,793
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
111
|
|
|
20,939
|
|
||||||
Investment banking revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,795
|
|
|
—
|
|
|
49,795
|
|
||||||
Commissions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,108
|
|
|
—
|
|
|
14,108
|
|
||||||
Fund management fees
|
|
—
|
|
|
—
|
|
|
6,659
|
|
|
1,382
|
|
|
—
|
|
|
8,041
|
|
||||||
Correspondent bank rebates
|
|
1,467
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,467
|
|
||||||
Total revenue from contracts with customers
|
|
$
|
144,417
|
|
|
$
|
537
|
|
|
$
|
6,659
|
|
|
$
|
65,285
|
|
|
$
|
359
|
|
|
$
|
217,257
|
|
Revenues outside the scope of ASC 606 (1)
|
|
8,444
|
|
|
(27
|
)
|
|
18,186
|
|
|
2,832
|
|
|
33,684
|
|
|
63,119
|
|
||||||
Total noninterest income
|
|
$
|
152,861
|
|
|
$
|
510
|
|
|
$
|
24,845
|
|
|
$
|
68,117
|
|
|
$
|
34,043
|
|
|
$
|
280,376
|
|
|
(1)
|
Amounts are accounted for under separate guidance than ASC 606.
|
(2)
|
Global Commercial Bank’s and SVB Capital’s components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."
|
(3)
|
For the three months ended March 31, 2019, the amount of client investment fees previously reported as "Other Items" has been correctly allocated to the reportable segment "Global Commercial Bank" to properly reflect the source of such revenue. The correction of this immaterial error had no impact on the "Total" amount of client investment fees.
|
13.
|
Other Noninterest Expense
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Lending and other client related processing costs
|
|
$
|
9,158
|
|
|
$
|
5,177
|
|
Correspondent bank fees
|
|
3,986
|
|
|
3,744
|
|
||
Investment banking activities
|
|
3,030
|
|
|
4,185
|
|
||
Trade order execution costs
|
|
2,745
|
|
|
2,516
|
|
||
Data processing services
|
|
3,454
|
|
|
2,899
|
|
||
Telephone
|
|
2,227
|
|
|
2,741
|
|
||
Dues and publications
|
|
1,130
|
|
|
1,524
|
|
||
Postage and supplies
|
|
856
|
|
|
770
|
|
||
Other
|
|
14,117
|
|
|
9,980
|
|
||
Total other noninterest expense
|
|
$
|
40,703
|
|
|
$
|
33,536
|
|
14.
|
Segment Reporting
|
•
|
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 the technology, life science/healthcare and private equity/venture capital industries. The Bank provides solutions to the financial needs of commercial clients through credit, treasury management, foreign exchange, trade finance, and other services. We broadly serve clients within the U.S., as well as non-U.S. clients in key international innovation markets. 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 Funds Banking (formerly Private Equity) Division provides banking products and services primarily to our private equity and venture capital clients.
|
◦
|
SVB Wine 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.
|
•
|
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 stock purchase 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:
|
(Dollars in thousands)
|
|
Global
Commercial
Bank (1)
|
|
SVB Private
Bank
|
|
SVB Capital (1)
|
|
SVB
Leerink (1)
|
|
Other Items (2)
|
|
Total
|
||||||||||||
Three months ended March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
463,835
|
|
|
$
|
15,164
|
|
|
$
|
21
|
|
|
$
|
201
|
|
|
$
|
44,916
|
|
|
$
|
524,137
|
|
(Provision for) reduction of credit losses
|
|
(194,411
|
)
|
|
(54,490
|
)
|
|
—
|
|
|
—
|
|
|
5,421
|
|
|
(243,480
|
)
|
||||||
Noninterest income
|
|
166,834
|
|
|
900
|
|
|
4,918
|
|
|
62,677
|
|
|
66,605
|
|
|
301,934
|
|
||||||
Noninterest expense (3)
|
|
(224,855
|
)
|
|
(10,090
|
)
|
|
(8,585
|
)
|
|
(62,037
|
)
|
|
(94,018
|
)
|
|
(399,585
|
)
|
||||||
Income (loss) before income tax expense (4)
|
|
$
|
211,403
|
|
|
$
|
(48,516
|
)
|
|
$
|
(3,646
|
)
|
|
$
|
841
|
|
|
$
|
22,924
|
|
|
$
|
183,006
|
|
Total average loans, amortized cost
|
|
$
|
29,137,484
|
|
|
$
|
3,857,478
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
665,766
|
|
|
$
|
33,660,728
|
|
Total average assets (5) (6)
|
|
61,813,129
|
|
|
3,892,400
|
|
|
447,201
|
|
|
483,648
|
|
|
5,770,790
|
|
|
72,407,168
|
|
||||||
Total average deposits
|
|
59,217,433
|
|
|
1,922,663
|
|
|
—
|
|
|
—
|
|
|
668,135
|
|
|
61,808,231
|
|
||||||
Three months ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
445,876
|
|
|
$
|
11,981
|
|
|
$
|
6
|
|
|
$
|
442
|
|
|
$
|
54,581
|
|
|
$
|
512,886
|
|
(Provision for) reduction of credit losses
|
|
(26,805
|
)
|
|
984
|
|
|
—
|
|
|
—
|
|
|
(2,730
|
)
|
|
(28,551
|
)
|
||||||
Noninterest income (7)
|
|
152,861
|
|
|
510
|
|
|
24,845
|
|
|
68,117
|
|
|
34,043
|
|
|
280,376
|
|
||||||
Noninterest expense (3)
|
|
(198,683
|
)
|
|
(7,414
|
)
|
|
(5,782
|
)
|
|
(60,540
|
)
|
|
(93,245
|
)
|
|
(365,664
|
)
|
||||||
Income (loss) before income tax expense (4)
|
|
$
|
373,249
|
|
|
$
|
6,061
|
|
|
$
|
19,069
|
|
|
$
|
8,019
|
|
|
$
|
(7,351
|
)
|
|
$
|
399,047
|
|
Total average loans, amortized cost
|
|
$
|
24,798,197
|
|
|
$
|
3,085,883
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
503,992
|
|
|
$
|
28,388,072
|
|
Total average assets (5) (6) (8)
|
|
50,132,098
|
|
|
3,109,275
|
|
|
378,732
|
|
|
300,332
|
|
|
3,608,000
|
|
|
57,528,437
|
|
||||||
Total average deposits
|
|
47,596,868
|
|
|
1,491,234
|
|
|
—
|
|
|
—
|
|
|
626,107
|
|
|
49,714,209
|
|
|
(1)
|
Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. Noncontrolling interest is included within “Other Items."
|
(2)
|
The “Other Items” column reflects the adjustments necessary to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Net interest income consists primarily of interest earned from our fixed income investment portfolio, net of FTP. Noninterest income consists primarily of gains or losses on equity warrant assets, gains or losses on the sale of AFS securities and gains or losses on equity securities from exercised warrant assets. Noninterest expense consists primarily of expenses associated with corporate support functions such as finance, human resources, marketing, legal and other expenses.
|
(3)
|
The Global Commercial Bank segment includes direct depreciation and amortization of $5.5 million and $4.9 million for the three months ended March 31, 2020 and 2019, respectively.
|
(4)
|
The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates.
|
(5)
|
Total average assets equal the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for each segment to reconcile the results to the consolidated financial statements prepared in conformity with GAAP.
|
(6)
|
Included in the total average assets for SVB Leerink is goodwill of $137.8 million for both the three months ended March 31, 2020 and 2019.
|
(7)
|
For the three months ended March 31, 2019, amounts of client investment fees included in the line item "Noninterest Income" previously reported as "Other Items" have been correctly allocated to our reportable segment "Global Commercial Bank" to properly reflect the source of such revenue. The correction of this immaterial error had no impact on the "Total" amount of noninterest income.
|
(8)
|
For the three months ended March 31, 2019, amounts for average assets previously reported as "Other Items" have been correctly allocated to the reportable segments "Global Commercial Bank" and “Private Bank” to properly reflect the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for “Global Commercial Bank” and “Private Bank.” The correction of this immaterial error had no impact on the "Total" amount of average assets.
|
15.
|
Off-Balance Sheet Arrangements, Guarantees and Other Commitments
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Loan commitments available for funding: (1)
|
|
|
|
|
||||
Fixed interest rate commitments
|
|
$
|
433,254
|
|
|
$
|
2,434,042
|
|
Variable interest rate commitments
|
|
21,325,138
|
|
|
19,309,317
|
|
||
Total loan commitments available for funding
|
|
21,758,392
|
|
|
21,743,359
|
|
||
Commercial and standby letters of credit (2)
|
|
2,909,918
|
|
|
2,778,561
|
|
||
Total unfunded credit commitments
|
|
$
|
24,668,310
|
|
|
$
|
24,521,920
|
|
Commitments unavailable for funding (3)
|
|
$
|
2,312,967
|
|
|
$
|
3,051,075
|
|
Allowance for unfunded credit commitments (4)
|
|
84,690
|
|
|
67,656
|
|
|
(1)
|
Represents commitments which are available for funding, due to clients meeting all collateral, compliance and financial covenants required under loan commitment agreements.
|
(2)
|
See below for additional information on our commercial and standby letters of credit.
|
(3)
|
Represents commitments which are currently unavailable for funding due to clients failing to meet all collateral, compliance and financial covenants under loan commitment agreements.
|
(4)
|
Our allowance for credit losses for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit.
|
(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
|
|
$
|
2,701,150
|
|
|
$
|
76,538
|
|
|
$
|
2,777,688
|
|
|
$
|
2,777,688
|
|
Performance standby letters of credit
|
|
105,359
|
|
|
17,406
|
|
|
122,765
|
|
|
122,765
|
|
||||
Commercial letters of credit
|
|
9,369
|
|
|
96
|
|
|
9,465
|
|
|
9,465
|
|
||||
Total
|
|
$
|
2,815,878
|
|
|
$
|
94,040
|
|
|
$
|
2,909,918
|
|
|
$
|
2,909,918
|
|
(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
|
|
|
2,325
|
|
|
5.0
|
|
||
Strategic Investors Fund V funds
|
|
515
|
|
|
131
|
|
|
Various
|
|
||
Other venture capital and private equity fund investments (equity method accounting)
|
|
21,787
|
|
|
5,732
|
|
|
Various
|
|
||
Debt funds (equity method accounting)
|
|
58,493
|
|
|
—
|
|
|
Various
|
|
||
Other fund investments (2)
|
|
282,508
|
|
|
6,049
|
|
|
Various
|
|
||
Total
|
|
$
|
465,400
|
|
|
$
|
19,022
|
|
|
|
|
(1)
|
Our ownership includes direct ownership of 1.3 percent and indirect ownership interest of 3.8 percent through our investment in Strategic Investors Fund II, LP.
|
(2)
|
Represents commitments to 202 funds (primarily venture capital funds) where our ownership interest is generally less than five percent of the voting interests of each such fund.
|
(3)
|
We are subject to the Volcker Rule, which restricts or limits us from sponsoring or having ownership interests in “covered” funds including venture capital and private equity funds. See “Business - Supervision and Regulation” under Part 1, Item 1 of our 2019 Form 10-K.
|
(Dollars in thousands)
|
|
Unfunded Commitments
|
||
Strategic Investors Fund, LP
|
|
$
|
376
|
|
Capital Preferred Return Fund, LP
|
|
1,532
|
|
|
Growth Partners, LP
|
|
2,447
|
|
|
Total
|
|
$
|
4,355
|
|
16.
|
Income Taxes
|
17.
|
Fair Value of Financial Instruments
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at March 31, 2020
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
4,043,840
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,043,840
|
|
U.S. agency debentures
|
|
—
|
|
|
101,687
|
|
|
—
|
|
|
101,687
|
|
||||
Foreign government debt securities
|
|
22,152
|
|
|
—
|
|
|
—
|
|
|
22,152
|
|
||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
—
|
|
|
4,943,512
|
|
|
—
|
|
|
4,943,512
|
|
||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
—
|
|
|
1,465,675
|
|
|
—
|
|
|
1,465,675
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
—
|
|
|
2,071,198
|
|
|
—
|
|
|
2,071,198
|
|
||||
Total available-for-sale securities
|
|
4,065,992
|
|
|
8,582,072
|
|
|
—
|
|
|
12,648,064
|
|
||||
Non-marketable and other equity securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Non-marketable securities:
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments measured at net asset value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
257,132
|
|
||||
Venture capital and private equity fund investments not measured at net asset value (1)
|
|
—
|
|
|
—
|
|
|
134
|
|
|
134
|
|
||||
Other equity securities in public companies
|
|
14,886
|
|
|
12,013
|
|
|
—
|
|
|
26,899
|
|
||||
Total non-marketable and other equity securities (fair value accounting)
|
|
14,886
|
|
|
12,013
|
|
|
134
|
|
|
284,165
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward and option contracts
|
|
—
|
|
|
239,272
|
|
|
—
|
|
|
239,272
|
|
||||
Equity warrant assets
|
|
—
|
|
|
2,852
|
|
|
149,858
|
|
|
152,710
|
|
||||
Client interest rate derivatives
|
|
—
|
|
|
80,543
|
|
|
—
|
|
|
80,543
|
|
||||
Total assets
|
|
$
|
4,080,878
|
|
|
$
|
8,916,752
|
|
|
$
|
149,992
|
|
|
$
|
13,404,754
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward and option contracts
|
|
$
|
—
|
|
|
$
|
195,891
|
|
|
$
|
—
|
|
|
$
|
195,891
|
|
Client interest rate derivatives
|
|
—
|
|
|
31,533
|
|
|
—
|
|
|
31,533
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
227,424
|
|
|
$
|
—
|
|
|
$
|
227,424
|
|
|
(1)
|
Included in Level 3 assets is $120 thousand attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.
|
(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
|
|
|
(1)
|
Included in Level 3 assets is $120 thousand attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.
|
(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 March 31, 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
|
|
|
14,601
|
|
|
—
|
|
|
(30,034
|
)
|
|
4,519
|
|
|
—
|
|
|
(266
|
)
|
|
149,858
|
|
||||||||
Total assets
|
|
$
|
161,172
|
|
|
$
|
14,606
|
|
|
$
|
—
|
|
|
$
|
(30,039
|
)
|
|
$
|
4,519
|
|
|
$
|
—
|
|
|
$
|
(266
|
)
|
|
$
|
149,992
|
|
Three months ended March 31, 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
|
|
|
$
|
(47
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
1,035
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity warrant assets (2)
|
|
145,199
|
|
|
19,165
|
|
|
575
|
|
|
(12,304
|
)
|
|
4,543
|
|
|
—
|
|
|
(429
|
)
|
|
156,749
|
|
||||||||
Total assets
|
|
$
|
146,278
|
|
|
$
|
19,118
|
|
|
$
|
575
|
|
|
$
|
(12,304
|
)
|
|
$
|
4,543
|
|
|
$
|
3
|
|
|
$
|
(429
|
)
|
|
$
|
157,784
|
|
|
(1)
|
Realized and unrealized gains (losses) are recorded in the line item “Gains on investment securities, net," a component of noninterest income.
|
(2)
|
Realized and unrealized gains (losses) are recorded in the line item “Gains on equity warrant assets, net," a component of noninterest income.
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Non-marketable and other equity securities (fair value accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments not measured at net asset value (1)
|
|
$
|
—
|
|
|
$
|
(47
|
)
|
Other assets:
|
|
|
|
|
||||
Equity warrant assets (2)
|
|
(4,145
|
)
|
|
14,772
|
|
||
Total unrealized (losses) gains, net
|
|
$
|
(4,145
|
)
|
|
$
|
14,725
|
|
Unrealized losses attributable to noncontrolling interests (1)
|
|
$
|
—
|
|
|
$
|
(39
|
)
|
|
(1)
|
Unrealized gains (losses) are recorded in the line item “Gains on investment securities, net," a component of noninterest income.
|
(2)
|
Unrealized gains (losses) are recorded in the line item “Gains on equity warrant assets, net," a component of noninterest income.
|
(Dollars in thousands)
|
|
Fair value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Input Range
|
|
Weighted
Average
|
|||
March 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|||
Venture capital and private equity fund investments (fair value accounting)
|
|
$
|
134
|
|
|
Private company equity pricing
|
|
(1)
|
|
(1)
|
|
(1
|
)
|
Equity warrant assets (public portfolio)
|
|
318
|
|
|
Black-Scholes option pricing model
|
|
Volatility
|
|
55.9%
|
|
55.9
|
%
|
|
|
|
|
|
Risk-Free interest rate
|
|
0.7
|
|
0.7
|
|
||||
|
|
|
|
Sales restrictions discount (2)
|
|
10.0 - 20.0
|
|
14.6
|
|
||||
Equity warrant assets (private portfolio)
|
|
149,540
|
|
|
Black-Scholes option pricing model
|
|
Volatility
|
|
25.6% - 55.9%
|
|
41.1
|
|
|
|
|
|
|
Risk-Free interest rate
|
|
0.1 - 0.7
|
|
0.3
|
|
||||
|
|
|
|
Marketability discount (3)
|
|
25.0
|
|
25.0
|
|
||||
|
|
|
|
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
|
|
|
(1)
|
In determining the fair value of our venture capital and private equity fund investment portfolio (not measured at net asset value), we evaluate a variety of factors related to each underlying private portfolio company including, but not limited to, actual and forecasted results, cash position, recent or planned transactions and market comparable 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)
|
We adjust quoted market prices of public companies, which are subject to certain sales restrictions. Sales restriction discounts generally range from 10 percent to 20 percent depending on the duration of the sales restrictions, which typically range from three to six months.
|
(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 March 31, 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
|
||||||||||
March 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
9,561,448
|
|
|
$
|
9,561,448
|
|
|
$
|
9,561,448
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Held-to-maturity securities
|
|
13,574,289
|
|
|
14,131,154
|
|
|
—
|
|
|
14,131,154
|
|
|
—
|
|
|||||
Non-marketable securities not measured at net asset value
|
|
190,959
|
|
|
190,959
|
|
|
—
|
|
|
—
|
|
|
190,959
|
|
|||||
Non-marketable securities measured at net asset value
|
|
224,669
|
|
|
224,669
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net commercial loans
|
|
31,837,622
|
|
|
32,128,958
|
|
|
—
|
|
|
—
|
|
|
32,128,958
|
|
|||||
Net consumer loans
|
|
3,581,500
|
|
|
3,614,597
|
|
|
—
|
|
|
—
|
|
|
3,614,597
|
|
|||||
FHLB and Federal Reserve Bank stock
|
|
116,323
|
|
|
116,323
|
|
|
—
|
|
|
—
|
|
|
116,323
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
3,138,162
|
|
|
3,138,162
|
|
|
—
|
|
|
3,138,162
|
|
|
—
|
|
|||||
Non-maturity deposits (1)
|
|
61,738,032
|
|
|
61,738,032
|
|
|
61,738,032
|
|
|
—
|
|
|
—
|
|
|||||
Time deposits
|
|
173,925
|
|
|
173,855
|
|
|
—
|
|
|
173,855
|
|
|
—
|
|
|||||
3.50% Senior Notes
|
|
348,076
|
|
|
363,878
|
|
|
—
|
|
|
363,878
|
|
|
—
|
|
|||||
Off-balance sheet financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commitments to extend credit
|
|
—
|
|
|
27,162
|
|
|
—
|
|
|
—
|
|
|
27,162
|
|
|||||
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
|
|
|
(1)
|
Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits.
|
(Dollars in thousands)
|
|
Carrying Amount
|
|
Fair Value
|
|
Unfunded Commitments
|
||||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (1)
|
|
$
|
257,132
|
|
|
$
|
257,132
|
|
|
$
|
9,518
|
|
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (2)
|
|
206,495
|
|
|
206,495
|
|
|
10,675
|
|
|||
Debt funds (2)
|
|
6,910
|
|
|
6,910
|
|
|
—
|
|
|||
Other investments (2)
|
|
11,265
|
|
|
11,265
|
|
|
886
|
|
|||
Total
|
|
$
|
481,802
|
|
|
$
|
481,802
|
|
|
$
|
21,079
|
|
|
(1)
|
Venture capital and private equity fund investments within non-marketable securities (fair value accounting) include investments made by our managed funds of funds and one of our direct venture funds (consolidated VIEs) and investments in venture capital and private equity fund investments (unconsolidated VIEs). Collectively, these investments in venture capital and private equity funds are primarily in U.S. and global technology and life science/healthcare companies. Included in the fair value and unfunded commitments of fund investments under fair value accounting are $63.2 million and $3.2 million, respectively, attributable to noncontrolling interests. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of terms of the funds.
|
(2)
|
Venture capital and private equity fund investments, debt funds, and other fund investments within non-marketable securities (equity method accounting) include funds that invest in or lend money to primarily U.S. and global technology and life science/healthcare companies. It is estimated that we will receive distributions from the funds over the next 5 to 8 years, depending on the age of the funds and any potential extensions of the terms of the funds.
|
18.
|
Legal Matters
|
19.
|
Related Parties
|
20.
|
Subsequent Events
|
•
|
Financial projections, including with respect to our net interest income, noninterest income, earnings per share, noninterest expenses (including professional services, compliance, compensation and other costs), cash flows, balance sheet positions, capital expenditures, liquidity and capitalization or other financial items;
|
•
|
Descriptions of our strategic initiatives, plans or objectives for future operations, including pending sales or acquisitions;
|
•
|
Forecasts of private equity/venture capital funding and investment levels;
|
•
|
Forecasts of future interest rates, economic performance, and income from investments;
|
•
|
Forecasts of expected levels of provisions for credit losses, nonperforming loans, loan growth and client funds;
|
•
|
The potential effects of the COVID-19 pandemic; and
|
•
|
Descriptions of assumptions underlying or relating to any of the foregoing.
|
•
|
Market and economic conditions, including the interest rate environment, and the associated impact on us;
|
•
|
The credit profile and credit quality of our loan portfolio and volatility of our levels of nonperforming assets and charge-offs;
|
•
|
The COVID-19 pandemic and its effects on the economic and business environments in which we operate;
|
•
|
The adequacy of our allowance for credit losses and the need to make provisions for credit losses for any period;
|
•
|
The borrowing needs of our clients;
|
•
|
The sufficiency of our capital and liquidity positions;
|
•
|
The levels of loans, deposits and client investment fund balances;
|
•
|
The performance of our portfolio investments; the general condition of the public and private equity and mergers and acquisitions markets and their impact on our investments, including equity warrant assets, venture capital and private equity funds and direct equity investments;
|
•
|
Our overall investment plans and strategies; the realization, timing, valuation and performance of our equity or other investments;
|
•
|
The levels of public offerings, mergers and acquisitions and venture capital investment activity of our clients that may impact the borrowing needs of our clients;
|
•
|
The occurrence of fraudulent activity, including breaches of our information security or cyber security-related incidents;
|
•
|
Business disruptions and interruptions due to natural disasters and other external events;
|
•
|
The impact on our reputation and business from our interactions with business partners, counterparties, service providers and other third parties;
|
•
|
Expansion of our business internationally, and the impact of international market and economic events on us;
|
•
|
The impact of governmental policy, legal requirements and regulations, including the Economic Growth, Regulatory Relief and Consumer Protection Act and the Dodd-Frank Act, promulgated by the Federal Reserve and other regulatory requirements;
|
•
|
The impact of lawsuits and claims, as well as legal or regulatory proceedings;
|
•
|
The impact of changes in accounting standards and tax laws;
|
•
|
The levels of equity capital available to our client or portfolio companies;
|
•
|
The effectiveness of our risk management framework and quantitative models;
|
•
|
Our ability to maintain or increase our market share, including through successfully implementing our business strategy and undertaking new business initiatives, including through the integration of SVB Leerink; and
|
•
|
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. $72.4 billion in average total assets (up 25.9%). $75.0 billion in period-end total assets (up 24.7%).
Loans. $33.7 billion in average total loan balances (up 18.6%). $36.0 billion in period-end total loan balances (up 24.7%).
Total Client Funds. (on-balance sheet deposits and off-balance sheet client investment funds). $165.4 billion in average total client fund balances (up 20.6%). $168.9 billion in period-end total client fund balances (up 20.2%).
AFS/HTM Fixed Income Investments. $27.1 billion in average fixed income investment securities (up 22.8%). $26.2 billion in period-end fixed income investment securities (up 20.2%).
|
|
EPS. Earnings per diluted share of $2.55 (down 53.1%).
Net Income. Consolidated net income available to common stockholders of $132.3 million (down 54.2%).
- Net interest income of $524.1 million (up 2.2%).
- Net interest margin of 3.12% (down 69 bps).
- Noninterest income of $301.9 million (up 7.7%), non-GAAP core fee income+ of $168.5 million (up 9.2%) and non-GAAP core fee income plus investment
banking revenue and commissions++ of $231.3 million (up 6.1%).
- Noninterest expense of $399.6 million (up 9.3%).
ROE. Return on average equity (annualized) (“ROE”) performance of 8.17%.
Operating Efficiency Ratio. Operating efficiency ratio of 48.37% with a non-GAAP core operating efficiency ratio of 47.71%+++.
|
|
|
|
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 12.35% and 10.90%.
- Tier 1 risk-based capital ratio of 13.35% and 10.90%.
- Total risk-based capital ratio of 14.45% and 12.04%.
- Tier 1 leverage ratio of 9.00% and 7.21%.
|
|
Credit Quality. Stable credit in an evolving credit environment.
- Allowance for credit losses for loans of 1.53% as a percentage of period-end total loans.
- Provision for loans of 2.78% as a percentage of period-end total loans (annualized).
- Net loan charge-offs of 0.35% as a percentage of average total loans (annualized).
|
|
|
Three months ended March 31,
|
||||||||||
(Dollars in thousands, except per share data, employees and ratios)
|
|
2020
|
|
2019
|
|
% Change
|
||||||
Income Statement:
|
|
|
|
|
|
|
|
|||||
Diluted earnings per share
|
|
$
|
2.55
|
|
|
$
|
5.44
|
|
|
(53.1
|
)
|
%
|
Net income available to common stockholders
|
|
132,253
|
|
|
288,732
|
|
|
(54.2
|
)
|
|
||
Net interest income
|
|
524,137
|
|
|
512,886
|
|
|
2.2
|
|
|
||
Net interest margin
|
|
3.12
|
%
|
|
3.81
|
%
|
|
(69
|
)
|
bps
|
||
Provision for credit losses
|
|
$
|
243,480
|
|
|
$
|
28,551
|
|
|
NM
|
|
%
|
Noninterest income
|
|
301,934
|
|
|
280,376
|
|
|
7.7
|
|
|
||
Noninterest expense
|
|
399,585
|
|
|
365,664
|
|
|
9.3
|
|
|
||
Non-GAAP core fee income (1)
|
|
168,458
|
|
|
154,243
|
|
|
9.2
|
|
|
||
Non-GAAP core fee income, plus investment banking revenue and commissions (1)
|
|
231,347
|
|
|
218,146
|
|
|
6.1
|
|
|
||
Non-GAAP noninterest income, net of noncontrolling interests (1)
|
|
303,788
|
|
|
277,128
|
|
|
9.6
|
|
|
||
Non-GAAP noninterest expense, net of noncontrolling interests (2)
|
|
399,445
|
|
|
365,285
|
|
|
9.4
|
|
|
||
Balance Sheet:
|
|
|
|
|
|
|
|
|||||
Average available-for-sale securities
|
|
$
|
13,565,908
|
|
|
$
|
6,870,168
|
|
|
97.5
|
|
%
|
Average held-to-maturity securities
|
|
13,576,061
|
|
|
15,223,958
|
|
|
(10.8
|
)
|
|
||
Average loans, amortized cost
|
|
33,660,728
|
|
|
28,388,072
|
|
|
18.6
|
|
|
||
Average noninterest-bearing demand deposits
|
|
41,335,984
|
|
|
38,222,687
|
|
|
8.1
|
|
|
||
Average interest-bearing deposits
|
|
20,472,247
|
|
|
11,491,522
|
|
|
78.2
|
|
|
||
Average total deposits
|
|
61,808,231
|
|
|
49,714,209
|
|
|
24.3
|
|
|
||
Earnings Ratios:
|
|
|
|
|
|
|
|
|||||
Return on average assets (annualized) (3)
|
|
0.73
|
%
|
|
2.04
|
%
|
|
(64.2
|
)
|
%
|
||
Return on average SVBFG stockholders’ equity (annualized) (4)
|
|
8.17
|
|
|
22.16
|
|
|
(63.1
|
)
|
|
||
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|||||
Allowance for credit losses for loans as a % of total period-end loans (5)
|
|
1.53
|
%
|
|
1.03
|
%
|
|
50
|
|
bps
|
||
Allowance for credit losses for performing loans as a % of total performing loans (5)
|
|
1.43
|
|
|
0.83
|
|
|
60
|
|
|
||
Gross loan charge-offs as a % of average total loans (annualized) (5)
|
|
0.44
|
|
|
0.13
|
|
|
31
|
|
|
||
Net loan charge-offs as a % of average total loans (annualized) (5)
|
|
0.35
|
|
|
0.11
|
|
|
24
|
|
|
||
Capital Ratios:
|
|
|
|
|
|
|
|
|||||
SVBFG CET 1 risk-based capital ratio
|
|
12.35
|
%
|
|
12.89
|
%
|
|
(54
|
)
|
bps
|
||
SVBFG tier 1 risk-based capital ratio
|
|
13.35
|
|
|
13.04
|
|
|
31
|
|
|
||
SVBFG total risk-based capital ratio
|
|
14.45
|
|
|
13.94
|
|
|
51
|
|
|
||
SVBFG tier 1 leverage ratio
|
|
9.00
|
|
|
9.10
|
|
|
(10
|
)
|
|
||
SVBFG tangible common equity to tangible assets (6)
|
|
8.70
|
|
|
8.59
|
|
|
11
|
|
|
||
SVBFG tangible common equity to risk-weighted assets (6)
|
|
13.40
|
|
|
12.86
|
|
|
54
|
|
|
||
Bank CET 1 risk-based capital ratio
|
|
10.90
|
|
|
12.35
|
|
|
(145
|
)
|
|
||
Bank tier 1 risk-based capital ratio
|
|
10.90
|
|
|
12.35
|
|
|
(145
|
)
|
|
||
Bank total risk-based capital ratio
|
|
12.04
|
|
|
13.29
|
|
|
(125
|
)
|
|
||
Bank tier 1 leverage ratio
|
|
7.21
|
|
|
8.38
|
|
|
(117
|
)
|
|
||
Bank tangible common equity to tangible assets (6)
|
|
7.63
|
|
|
7.99
|
|
|
(36
|
)
|
|
||
Bank tangible common equity to risk-weighted assets (6)
|
|
11.99
|
|
|
12.32
|
|
|
(33
|
)
|
|
||
Other Ratios:
|
|
|
|
|
|
|
|
|||||
Operating efficiency ratio (7)
|
|
48.37
|
%
|
|
46.10
|
%
|
|
4.9
|
|
%
|
||
Non-GAAP core operating efficiency ratio (2)
|
|
47.71
|
|
|
44.71
|
|
|
6.7
|
|
|
||
Total costs of deposits (annualized) (8)
|
|
0.24
|
|
|
0.23
|
|
|
4.3
|
|
|
||
Book value per common share (9)
|
|
$
|
130.02
|
|
|
$
|
102.11
|
|
|
27.3
|
|
|
Other Statistics:
|
|
|
|
|
|
|
|
|||||
Average full-time equivalent employees
|
|
3,672
|
|
|
3,228
|
|
|
13.8
|
|
%
|
||
Period-end full-time equivalent employees
|
|
3,710
|
|
|
3,250
|
|
|
14.2
|
|
|
|
(1)
|
See “Results of Operations–Noninterest Income” for a description and reconciliation of non-GAAP core fee income and non-GAAP core fee income plus investment banking revenue and commissions.
|
(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 quarter ended March 31, 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
|
||||||||||
|
|
Three months ended March 31, increase (decrease) due to change in
|
||||||||||
(Dollars in thousands)
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities
|
|
$
|
6,876
|
|
|
$
|
(8,468
|
)
|
|
$
|
(1,592
|
)
|
Fixed income investment portfolio (taxable)
|
|
25,287
|
|
|
2,381
|
|
|
27,668
|
|
|||
Fixed income investment portfolio (non-taxable)
|
|
2,801
|
|
|
(412
|
)
|
|
2,389
|
|
|||
Loans, amortized cost
|
|
60,839
|
|
|
(72,414
|
)
|
|
(11,575
|
)
|
|||
Increase (decrease) in interest income, net
|
|
95,803
|
|
|
(78,913
|
)
|
|
16,890
|
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Interest bearing checking and savings accounts
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|||
Money market deposits
|
|
16,082
|
|
|
(4,900
|
)
|
|
11,182
|
|
|||
Money market deposits in foreign offices
|
|
10
|
|
|
(2
|
)
|
|
8
|
|
|||
Time deposits
|
|
296
|
|
|
103
|
|
|
399
|
|
|||
Sweep deposits in foreign offices
|
|
426
|
|
|
(2,518
|
)
|
|
(2,092
|
)
|
|||
Total increase (decrease) in deposits expense
|
|
16,814
|
|
|
(7,323
|
)
|
|
9,491
|
|
|||
Short-term borrowings
|
|
1,725
|
|
|
(1,214
|
)
|
|
511
|
|
|||
3.50% Senior Notes
|
|
3
|
|
|
—
|
|
|
3
|
|
|||
5.375% Senior Notes
|
|
(4,868
|
)
|
|
—
|
|
|
(4,868
|
)
|
|||
Total decrease in borrowings expense
|
|
(3,140
|
)
|
|
(1,214
|
)
|
|
(4,354
|
)
|
|||
Increase (decrease) in interest expense, net
|
|
13,674
|
|
|
(8,537
|
)
|
|
5,137
|
|
|||
Increase (decrease) in net interest income
|
|
$
|
82,129
|
|
|
$
|
(70,376
|
)
|
|
$
|
11,753
|
|
•
|
Interest income for the three months ended March 31, 2020 increased by $16.9 million due primarily to:
|
◦
|
A $30.1 million increase in interest income from our fixed income investment securities. The increase was due primarily to the increase of $5.0 billion in average fixed income investment securities, partially offset by
|
◦
|
An $11.6 million decrease in interest income on loans to $382.6 million for the three months ended March 31, 2020, compared to $394.1 million for the comparable 2019 period. The decrease was reflective of a decrease in the overall loan yields of 106 basis points to 4.57 percent from 5.63 percent partially offset by an increase in average loan balances of $5.3 billion. Gross loan yields, excluding loan interest recoveries and loan fees, decreased 97 basis points to 4.13 percent from 5.10 percent, reflective primarily of the impact of the decreases in Federal Funds rates in the latter half of 2019 as well as March 2020, partially offset by an increase reflective of gains on the termination and net settlement of our interest rate swap cash flow hedges. Refer to Note 11 — “Derivative Financial Instruments” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional information regarding the termination and net settlement of our interest rate swap cash flow hedges.
|
•
|
Interest expense for the three months ended March 31, 2020 increased by $5.1 million due primarily to:
|
◦
|
A $9.5 million increase in interest expense on deposits due primarily to an increase in interest paid on our interest-bearing money market deposits due to the growth in average interest-bearing deposits of $9.0 billion partially offset by decreases in market rates, partially offset by
|
◦
|
A $4.4 million decrease in interest expense on borrowings expense due primarily to the extinguishment of our 5.375% Senior Notes in December 2019.
|
•
|
Our net interest margin decreased by 69 basis points to 3.12 percent for the three months ended March 31, 2020, compared to 3.81 percent for the comparable 2019 period. The lower margin for the three months ended March 31, 2020 was due primarily to a decrease in yields on loans reflective of the three 25 basis point Federal Funds rate decreases in the latter half of 2019 as well as the aggregate 150 basis point decrease in March 2020. The decrease in our net interest margin was partially offset by increases from balance sheet growth as well as increases from our interest rate swap cash flow hedges and effective loan floors. Average loans represented 49.4 percent of average interest earnings assets for the three months ended March 31, 2020, compared to 51.7 percent for the comparable 2019 period.
|
|
|
Three months ended March 31,
|
||||||||||||||||||||
|
|
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)
|
|
$
|
7,308,705
|
|
|
$
|
17,624
|
|
|
0.97
|
%
|
|
$
|
4,460,378
|
|
|
$
|
19,216
|
|
|
1.75
|
%
|
Investment securities: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
13,565,908
|
|
|
77,024
|
|
|
2.28
|
|
|
6,870,168
|
|
|
35,422
|
|
|
2.09
|
|
||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
11,675,421
|
|
|
77,361
|
|
|
2.66
|
|
|
13,651,311
|
|
|
91,295
|
|
|
2.71
|
|
||||
Non-taxable (3)
|
|
1,900,640
|
|
|
16,233
|
|
|
3.44
|
|
|
1,572,647
|
|
|
13,844
|
|
|
3.57
|
|
||||
Total loans, amortized cost (4) (5)
|
|
33,660,728
|
|
|
382,569
|
|
|
4.57
|
|
|
28,388,072
|
|
|
394,144
|
|
|
5.63
|
|
||||
Total interest-earning assets
|
|
68,111,402
|
|
|
570,811
|
|
|
3.37
|
|
|
54,942,576
|
|
|
553,921
|
|
|
4.09
|
|
||||
Cash and due from banks
|
|
797,462
|
|
|
|
|
|
|
527,109
|
|
|
|
|
|
||||||||
Allowance for credit losses for loans
|
|
(327,812
|
)
|
|
|
|
|
|
(288,927
|
)
|
|
|
|
|
||||||||
Other assets (6)
|
|
3,826,116
|
|
|
|
|
|
|
2,347,679
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
72,407,168
|
|
|
|
|
|
|
$
|
57,528,437
|
|
|
|
|
|
||||||
Funding sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing checking and savings accounts
|
|
$
|
546,428
|
|
|
$
|
108
|
|
|
0.08
|
%
|
|
$
|
545,238
|
|
|
$
|
114
|
|
|
0.08
|
%
|
Money market deposits
|
|
17,613,578
|
|
|
33,013
|
|
|
0.75
|
|
|
9,073,622
|
|
|
21,831
|
|
|
0.98
|
|
||||
Money market deposits in foreign offices
|
|
266,045
|
|
|
24
|
|
|
0.04
|
|
|
148,342
|
|
|
16
|
|
|
0.04
|
|
||||
Time deposits
|
|
163,343
|
|
|
429
|
|
|
1.06
|
|
|
50,691
|
|
|
30
|
|
|
0.24
|
|
||||
Sweep deposits in foreign offices
|
|
1,882,853
|
|
|
3,824
|
|
|
0.82
|
|
|
1,673,629
|
|
|
5,916
|
|
|
1.43
|
|
||||
Total interest-bearing deposits
|
|
20,472,247
|
|
|
37,398
|
|
|
0.73
|
|
|
11,491,522
|
|
|
27,907
|
|
|
0.98
|
|
||||
Short-term borrowings
|
|
969,896
|
|
|
2,716
|
|
|
1.13
|
|
|
353,389
|
|
|
2,205
|
|
|
2.53
|
|
||||
3.50% Senior Notes
|
|
348,018
|
|
|
3,151
|
|
|
3.64
|
|
|
347,669
|
|
|
3,148
|
|
|
3.67
|
|
||||
5.375% Senior Notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
348,882
|
|
|
4,868
|
|
|
5.66
|
|
||||
Total interest-bearing liabilities
|
|
21,790,161
|
|
|
43,265
|
|
|
0.80
|
|
|
12,541,462
|
|
|
38,128
|
|
|
1.23
|
|
||||
Portion of noninterest-bearing funding sources
|
|
46,321,241
|
|
|
|
|
|
|
42,401,114
|
|
|
|
|
|
||||||||
Total funding sources
|
|
68,111,402
|
|
|
43,265
|
|
|
0.25
|
|
|
54,942,576
|
|
|
38,128
|
|
|
0.28
|
|
||||
Noninterest-bearing funding sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
41,335,984
|
|
|
|
|
|
|
38,222,687
|
|
|
|
|
|
||||||||
Other liabilities
|
|
2,277,031
|
|
|
|
|
|
|
1,330,037
|
|
|
|
|
|
||||||||
Preferred stock
|
|
340,169
|
|
|
|
|
|
|
—
|
|
|
|
|
|
||||||||
SVBFG common stockholders’ equity
|
|
6,512,946
|
|
|
|
|
|
|
5,283,808
|
|
|
|
|
|
||||||||
Noncontrolling interests
|
|
150,877
|
|
|
|
|
|
|
150,443
|
|
|
|
|
|
||||||||
Portion used to fund interest-earning assets
|
|
(46,321,241
|
)
|
|
|
|
|
|
(42,401,114
|
)
|
|
|
|
|
||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity
|
|
$
|
72,407,168
|
|
|
|
|
|
|
$
|
57,528,437
|
|
|
|
|
|
||||||
Net interest income and margin
|
|
|
|
$
|
527,546
|
|
|
3.12
|
%
|
|
|
|
$
|
515,793
|
|
|
3.81
|
%
|
||||
Total deposits
|
|
$
|
61,808,231
|
|
|
|
|
|
|
$
|
49,714,209
|
|
|
|
|
|
||||||
Reconciliation to reported net interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments for taxable equivalent basis
|
|
|
|
(3,409
|
)
|
|
|
|
|
|
(2,907
|
)
|
|
|
||||||||
Net interest income, as reported
|
|
|
|
$
|
524,137
|
|
|
|
|
|
|
$
|
512,886
|
|
|
|
|
(1)
|
Includes average interest-earning deposits in other financial institutions of $0.9 billion and $0.8 billion for the three months ended March 31, 2020 and 2019, respectively. For the three months ended March 31, 2020 and 2019, balances also include $5.5 billion and $2.8 billion, respectively, deposited at the FRB, earning interest at the Federal Funds target rate.
|
(2)
|
Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income.
|
(3)
|
Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 21.0 percent for all periods presented.
|
(4)
|
Nonaccrual loans are reflected in the average balances of loans.
|
(5)
|
Interest income includes loan fees of $36.7 million for both the three months ended March 31, 2020 and 2019.
|
(6)
|
Average investment securities of $1.6 billion and $913 million for the three months ended March 31, 2020 and 2019, respectively, were classified as other assets as they were noninterest-earning assets. These investments primarily consisted of non-marketable and other equity securities.
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands, except ratios)
|
|
2020
|
|
2019
|
||||
Allowance for credit losses for loans, beginning balance
|
|
$
|
304,924
|
|
|
$
|
280,903
|
|
Day one impact of adopting ASC 326
|
|
25,464
|
|
|
—
|
|
||
Provision for loans
|
|
248,901
|
|
|
25,821
|
|
||
Gross loan charge-offs
|
|
(36,896
|
)
|
|
(9,000
|
)
|
||
Loan recoveries
|
|
7,755
|
|
|
1,425
|
|
||
Foreign currency translation adjustments
|
|
(1,185
|
)
|
|
1,002
|
|
||
Allowance for credit losses for loans, ending balance
|
|
$
|
548,963
|
|
|
$
|
300,151
|
|
Allowance for credit losses for unfunded credit commitments, beginning balance
|
|
67,656
|
|
|
55,183
|
|
||
Day one impact of adopting ASC 326
|
|
22,826
|
|
|
—
|
|
||
(Reduction of) provision for unfunded credit commitments
|
|
(5,477
|
)
|
|
2,730
|
|
||
Foreign currency translation adjustments
|
|
(315
|
)
|
|
57
|
|
||
Allowance for credit losses for unfunded credit commitments, ending balance (1)
|
|
$
|
84,690
|
|
|
$
|
57,970
|
|
Allowance for credit losses for HTM securities, beginning balance
|
|
—
|
|
|
—
|
|
||
Day one impact of adopting ASC 326
|
|
174
|
|
|
—
|
|
||
Provision for HTM securities
|
|
56
|
|
|
—
|
|
||
Allowance for credit losses for HTM securities, ending balance (2)
|
|
$
|
230
|
|
|
$
|
—
|
|
Ratios and other information:
|
|
|
|
|
||||
Provision for loans as a percentage of period-end total loans (annualized) (3)
|
|
2.78
|
%
|
|
0.36
|
%
|
||
Allowance for credit losses for loans as a percentage of period-end total loans (3)
|
|
1.53
|
|
|
1.03
|
|
||
Provision for credit losses
|
|
$
|
243,480
|
|
|
$
|
28,551
|
|
Period-end total loans (3)
|
|
35,968,085
|
|
|
29,020,519
|
|
||
Average total loans (3)
|
|
33,660,728
|
|
|
28,555,655
|
|
|
(1)
|
The “allowance for credit losses for unfunded credit commitments” is included as a component of “Other liabilities” on our consolidated balance sheets.
|
(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 months ended March 31, 2020, loan amounts are disclosed, and ratios are calculated, using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed, and ratios are calculated, using the gross basis.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
GAAP noninterest income
|
|
$
|
301,934
|
|
|
$
|
280,376
|
|
|
7.7
|
%
|
Less: (loss) income attributable to noncontrolling interests, including carried interest allocation
|
|
(1,854
|
)
|
|
3,248
|
|
|
(157.1
|
)
|
||
Non-GAAP noninterest income, net of noncontrolling interests
|
|
$
|
303,788
|
|
|
$
|
277,128
|
|
|
9.6
|
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
GAAP noninterest income
|
|
$
|
301,934
|
|
|
$
|
280,376
|
|
|
7.7
|
%
|
Less: gains on investment securities, net
|
|
46,055
|
|
|
29,028
|
|
|
58.7
|
|
||
Less: gains on equity warrant assets, net
|
|
13,395
|
|
|
21,305
|
|
|
(37.1
|
)
|
||
Less: other noninterest income
|
|
11,137
|
|
|
11,897
|
|
|
(6.4
|
)
|
||
Non-GAAP core fee income plus investment banking revenue and commissions (1)
|
|
$
|
231,347
|
|
|
$
|
218,146
|
|
|
6.1
|
|
Less: investment banking revenue
|
|
46,867
|
|
|
49,795
|
|
|
(5.9
|
)
|
||
Less: commissions
|
|
16,022
|
|
|
14,108
|
|
|
13.6
|
|
||
Non-GAAP core fee income (2)
|
|
$
|
168,458
|
|
|
$
|
154,243
|
|
|
9.2
|
|
|
(1)
|
Non-GAAP core fee income plus investment banking revenue and commissions represents noninterest income, but excludes certain line items where performance is typically subject to market or other conditions beyond our control, and other noninterest income. Core fee income plus investment banking revenue and commissions is Non-GAAP core fee income (as defined in the subsequent footnote) with the addition of investment banking revenue and commissions.
|
(2)
|
Non-GAAP core fee income represents noninterest income, but excludes (i) certain line items where performance is typically subject to market or other conditions beyond our control, (ii) our investment banking revenue and commissions and (iii) other noninterest income. Non-GAAP core fee income includes client investment fees, foreign exchange fees, credit card fees, deposit service charges, lending related fees and letters of credit and standby letters of credit fees.
|
•
|
Gains of $61.2 million from our AFS debt securities portfolio, resulting from the sale of $2.6 billion of U.S. Treasury securities during the quarter, offset by
|
•
|
Losses of $4.2 million from our public equity securities investments, primarily driven by unrealized losses due to decreases in the value of public equity securities held, and
|
•
|
Losses of $7.5 million from our SVB Capital managed funds and strategic direct investments (comprised of our managed funds of funds, managed direct venture funds, debt funds and strategic and other investments components below) primarily driven by a downward valuation adjustment of $17.1 million for illiquid investments held in the private managed funds and companies of our portfolios due to the current market volatility. The downward valuation adjustment was offset by unrealized net valuation increases from private company investments held in these portfolios.
|
(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 March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total gains (losses) on investment securities, net
|
|
$
|
(2,464
|
)
|
|
$
|
(2,272
|
)
|
|
$
|
(4,206
|
)
|
|
$
|
(362
|
)
|
|
$
|
61,165
|
|
|
$
|
(4,017
|
)
|
|
$
|
(1,789
|
)
|
|
$
|
46,055
|
|
Less: (loss) income attributable to noncontrolling interests, including carried interest allocation
|
|
(306
|
)
|
|
(1,327
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
(1,535
|
)
|
||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests
|
|
$
|
(2,158
|
)
|
|
$
|
(945
|
)
|
|
$
|
(4,206
|
)
|
|
$
|
(362
|
)
|
|
$
|
61,165
|
|
|
$
|
(4,017
|
)
|
|
$
|
(1,887
|
)
|
|
$
|
47,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Three months ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total gains (losses) on investment securities, net
|
|
$
|
6,229
|
|
|
$
|
(634
|
)
|
|
$
|
9,636
|
|
|
$
|
—
|
|
|
$
|
(3,630
|
)
|
|
$
|
15,002
|
|
|
$
|
2,425
|
|
|
$
|
29,028
|
|
Less: income (loss) attributable to noncontrolling interests, including carried interest allocation
|
|
3,745
|
|
|
(309
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
3,436
|
|
|||||||
Non-GAAP net gains (loss) on investment securities, net of noncontrolling interests
|
|
$
|
2,484
|
|
|
$
|
(325
|
)
|
|
$
|
9,636
|
|
|
$
|
—
|
|
|
$
|
(3,630
|
)
|
|
$
|
15,002
|
|
|
$
|
2,425
|
|
|
$
|
25,592
|
|
•
|
Net gains of $19.2 million from the exercise of equity warrant assets, partially offset by
|
•
|
Net losses of $5.5 million from warrant valuations in our private company warrant portfolio consisting of an overall downward valuation adjustment of $8.2 million due to the current market volatility, partially offset by net valuation increases.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Equity warrant assets (1):
|
|
|
|
|
|
|
|||||
Gains on exercises, net
|
|
$
|
19,193
|
|
|
$
|
5,482
|
|
|
NM
|
|
Terminations
|
|
(326
|
)
|
|
(415
|
)
|
|
(21.4
|
)%
|
||
Changes in fair value, net
|
|
(5,472
|
)
|
|
16,238
|
|
|
(133.7
|
)
|
||
Total gains on equity warrant assets, net
|
|
$
|
13,395
|
|
|
$
|
21,305
|
|
|
(37.1
|
)
|
|
(1)
|
At March 31, 2020, we held warrants in 2,342 companies, compared to 2,149 companies at March 31, 2019. The total fair value of our warrant portfolio was $152.7 million at March 31, 2020 and $162.2 million at March 31, 2019. Warrants in 19 companies each had fair values greater than $1.0 million and collectively represented $46.7 million, or 30.6 percent, of the fair value of the total warrant portfolio at March 31, 2020. Warrants in 26 companies each had fair values greater than $1.0 million and collectively represented $56.8 million, or 35.0 percent, of the fair value of the total warrant portfolio at March 31, 2019.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Non-GAAP core fee income (1):
|
|
|
|
|
|
|
|||||
Client investment fees
|
|
$
|
43,393
|
|
|
$
|
44,482
|
|
|
(2.4
|
)%
|
Foreign exchange fees
|
|
47,505
|
|
|
38,048
|
|
|
24.9
|
|
||
Credit card fees
|
|
28,304
|
|
|
27,483
|
|
|
3.0
|
|
||
Deposit service charges
|
|
24,589
|
|
|
20,939
|
|
|
17.4
|
|
||
Lending related fees
|
|
13,125
|
|
|
13,937
|
|
|
(5.8
|
)
|
||
Letters of credit and standby letters of credit fees
|
|
11,542
|
|
|
9,354
|
|
|
23.4
|
|
||
Total non-GAAP core fee income (1)
|
|
$
|
168,458
|
|
|
$
|
154,243
|
|
|
9.2
|
|
Investment banking revenue
|
|
46,867
|
|
|
49,795
|
|
|
(5.9
|
)
|
||
Commissions
|
|
16,022
|
|
|
14,108
|
|
|
13.6
|
|
||
Total non-GAAP core fee income plus investment banking revenue and commissions (2)
|
|
$
|
231,347
|
|
|
$
|
218,146
|
|
|
6.1
|
|
|
(1)
|
This non-GAAP measure represents noninterest income, but excludes (i) certain line items where performance is typically subject to market or other conditions beyond our control, (ii) our investment banking revenue and commissions and (iii) other noninterest income. See “Use of Non-GAAP Measures” above.
|
(2)
|
Non-GAAP core fee income plus investment banking revenue and commissions represents noninterest income, but excludes certain line items where performance is typically subject to market or other conditions beyond our control and other noninterest income. See “Use of Non-GAAP Measures” above.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Client investment fees by type:
|
|
|
|
|
|
|
|||||
Sweep money market fees
|
|
$
|
23,049
|
|
|
$
|
26,544
|
|
|
(13.2
|
)%
|
Asset management fees
|
|
9,137
|
|
|
6,671
|
|
|
37.0
|
|
||
Repurchase agreement fees
|
|
11,207
|
|
|
11,267
|
|
|
(0.5
|
)
|
||
Total client investment fees
|
|
$
|
43,393
|
|
|
$
|
44,482
|
|
|
(2.4
|
)
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in millions)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Sweep money market funds
|
|
$
|
43,045
|
|
|
$
|
39,805
|
|
|
8.1
|
%
|
Client investment assets under management (1)
|
|
50,746
|
|
|
39,247
|
|
|
29.3
|
|
||
Repurchase agreements
|
|
9,799
|
|
|
8,362
|
|
|
17.2
|
|
||
Total average client investment funds (2)
|
|
$
|
103,590
|
|
|
$
|
87,414
|
|
|
18.5
|
|
|
(1)
|
These funds represent investments in third-party money market mutual funds and fixed-income securities managed by SVB Asset Management.
|
(2)
|
Client investment funds are maintained at third-party financial institutions and are not recorded on our balance sheet.
|
(Dollars in millions)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
% Change
|
|||||
Sweep money market funds
|
|
$
|
44,833
|
|
|
$
|
43,226
|
|
|
3.7
|
%
|
Client investment assets under management (1)
|
|
51,020
|
|
|
46,904
|
|
|
8.8
|
|
||
Repurchase agreements
|
|
11,099
|
|
|
9,062
|
|
|
22.5
|
|
||
Total period-end client investment funds (2)
|
|
$
|
106,952
|
|
|
$
|
99,192
|
|
|
7.8
|
|
|
(1)
|
These funds represent investments in third-party money market mutual funds and fixed-income securities managed by SVB Asset Management.
|
(2)
|
Client investment funds are maintained at third-party financial institutions and are not recorded on our balance sheet.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Foreign exchange fees by instrument type:
|
|
|
|
|
|
|
|||||
Spot contract commissions
|
|
$
|
40,934
|
|
|
$
|
35,029
|
|
|
16.9
|
%
|
Forward contract commissions
|
|
6,339
|
|
|
2,995
|
|
|
111.7
|
|
||
Option premium fees
|
|
232
|
|
|
24
|
|
|
NM
|
|
||
Total foreign exchange fees
|
|
$
|
47,505
|
|
|
$
|
38,048
|
|
|
24.9
|
|
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Credit card fees by instrument type:
|
|
|
|
|
|
|
|||||
Card interchange fees, net
|
|
$
|
21,775
|
|
|
$
|
21,393
|
|
|
1.8
|
%
|
Merchant service fees
|
|
5,027
|
|
|
4,534
|
|
|
10.9
|
|
||
Card service fees
|
|
1,502
|
|
|
1,556
|
|
|
(3.5
|
)
|
||
Total credit card fees
|
|
$
|
28,304
|
|
|
$
|
27,483
|
|
|
3.0
|
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Lending related fees by instrument type:
|
|
|
|
|
|
|
|||||
Unused commitment fees
|
|
$
|
8,406
|
|
|
$
|
9,670
|
|
|
(13.1
|
)%
|
Other
|
|
4,719
|
|
|
4,267
|
|
|
10.6
|
|
||
Total lending related fees
|
|
$
|
13,125
|
|
|
$
|
13,937
|
|
|
(5.8
|
)
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Investment banking revenue:
|
|
|
|
|
|
|
|||||
Underwriting fees
|
|
$
|
31,290
|
|
|
$
|
35,772
|
|
|
(12.5
|
)%
|
Advisory fees
|
|
15,487
|
|
|
12,273
|
|
|
26.2
|
|
||
Private placements and other
|
|
90
|
|
|
1,750
|
|
|
(94.9
|
)
|
||
Total investment banking revenue
|
|
$
|
46,867
|
|
|
$
|
49,795
|
|
|
(5.9
|
)
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Compensation and benefits
|
|
$
|
255,586
|
|
|
$
|
238,061
|
|
|
7.4
|
%
|
Professional services
|
|
38,705
|
|
|
36,986
|
|
|
4.6
|
|
||
Premises and equipment
|
|
26,940
|
|
|
21,700
|
|
|
24.1
|
|
||
Net occupancy
|
|
18,346
|
|
|
16,048
|
|
|
14.3
|
|
||
Business development and travel
|
|
14,071
|
|
|
15,354
|
|
|
(8.4
|
)
|
||
FDIC and state assessments
|
|
5,234
|
|
|
3,979
|
|
|
31.5
|
|
||
Other
|
|
40,703
|
|
|
33,536
|
|
|
21.4
|
|
||
Total noninterest expense
|
|
$
|
399,585
|
|
|
$
|
365,664
|
|
|
9.3
|
|
|
|
Three months ended March 31,
|
|||||||||
Non-GAAP core operating efficiency ratio (Dollars in thousands, except ratios)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
GAAP noninterest expense
|
|
$
|
399,585
|
|
|
$
|
365,664
|
|
|
9.3
|
%
|
Less: expense attributable to noncontrolling interests
|
|
140
|
|
|
379
|
|
|
(63.1
|
)
|
||
Non-GAAP noninterest expense, net of noncontrolling interests
|
|
399,445
|
|
|
365,285
|
|
|
9.4
|
|
||
Less: expense attributable to SVB Leerink
|
|
62,037
|
|
|
60,540
|
|
|
2.5
|
|
||
Non-GAAP noninterest expense, net of noncontrolling interests and SVB Leerink
|
|
$
|
337,408
|
|
|
$
|
304,745
|
|
|
10.7
|
|
|
|
|
|
|
|
|
|||||
GAAP net interest income
|
|
$
|
524,137
|
|
|
$
|
512,886
|
|
|
2.2
|
|
Adjustments for taxable equivalent basis
|
|
3,409
|
|
|
2,907
|
|
|
17.3
|
|
||
Non-GAAP taxable equivalent net interest income
|
|
527,546
|
|
|
515,793
|
|
|
2.3
|
|
||
Less: income attributable to noncontrolling interests
|
|
21
|
|
|
11
|
|
|
90.9
|
|
||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests
|
|
527,525
|
|
|
515,782
|
|
|
2.3
|
|
||
Less: net interest income attributable to SVB Leerink
|
|
201
|
|
|
442
|
|
|
(54.5
|
)
|
||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests and SVB Leerink
|
|
$
|
527,324
|
|
|
$
|
515,340
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|||||
GAAP noninterest income
|
|
$
|
301,934
|
|
|
$
|
280,376
|
|
|
7.7
|
|
Less: (loss) income attributable to noncontrolling interests, including carried interest allocation
|
|
(1,854
|
)
|
|
3,248
|
|
|
(157.1
|
)
|
||
Non-GAAP noninterest income, net of noncontrolling interests
|
|
303,788
|
|
|
277,128
|
|
|
9.6
|
|
||
Less: non-GAAP net gains on investment securities, net of noncontrolling interests
|
|
47,590
|
|
|
25,592
|
|
|
86.0
|
|
||
Less: net gains on equity warrant assets
|
|
13,395
|
|
|
21,305
|
|
|
(37.1
|
)
|
||
Less: investment banking revenue
|
|
46,867
|
|
|
49,795
|
|
|
(5.9
|
)
|
||
Less: commissions
|
|
16,022
|
|
|
14,108
|
|
|
13.6
|
|
||
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
|
|
$
|
179,914
|
|
|
$
|
166,328
|
|
|
8.2
|
|
|
|
|
|
|
|
|
|||||
GAAP total revenue
|
|
$
|
826,071
|
|
|
$
|
793,262
|
|
|
4.1
|
|
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
|
|
$
|
707,238
|
|
|
$
|
681,668
|
|
|
3.8
|
|
|
|
|
|
|
|
|
|||||
Operating efficiency ratio
|
|
48.37
|
%
|
|
46.10
|
%
|
|
4.9
|
|
||
Non-GAAP core operating efficiency ratio (1)
|
|
47.71
|
|
|
44.71
|
|
|
6.7
|
|
|
(1)
|
The non-GAAP core operating efficiency ratio is calculated by dividing noninterest expense after adjusting for noninterest expense attributable to SVB Leerink by total revenue after adjusting for net interest income attributable to SVB Leerink, net gains or losses on investment securities and equity warrant assets, investment banking revenue and commissions. Additionally, noninterest expense and total revenue are adjusted for income or losses and expenses attributable to noncontrolling interests and adjustments to net interest income for a taxable equivalent basis.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands, except employees)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Compensation and benefits:
|
|
|
|
|
|
|
|||||
Salaries and wages
|
|
$
|
115,614
|
|
|
$
|
101,200
|
|
|
14.2
|
%
|
Incentive compensation plans
|
|
66,674
|
|
|
69,389
|
|
|
(3.9
|
)
|
||
Other employee incentives and benefits (1)
|
|
73,298
|
|
|
67,472
|
|
|
8.6
|
|
||
Total compensation and benefits
|
|
$
|
255,586
|
|
|
$
|
238,061
|
|
|
7.4
|
|
Period-end full-time equivalent employees
|
|
3,710
|
|
|
3,250
|
|
|
14.2
|
|
||
Average full-time equivalent employees
|
|
3,672
|
|
|
3,228
|
|
|
13.8
|
|
|
(1)
|
Other employee incentives and benefits includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), ESOP, warrant incentive and retention plans, agency fees and other employee-related expenses.
|
•
|
An increase of $14.4 million in salaries and wages reflective primarily due to the increase in the number of average FTE by 444 to 3,672 for the first quarter of 2020, as well as annual pay raises,
|
•
|
A decrease of $2.7 million in incentive compensation plans expense due to the decrease in our incentive accruals as a result of our revised 2020 full-year projected financial performance attributable to the projected financial impact of the COVID-19 pandemic, and
|
•
|
An increase of $5.8 million in other employee incentives and benefits primarily driven by additional 401(k) matching contributions as a result of the 2019 annual incentive compensation plan payments and an increase in employer payroll taxes reflective of our increased headcount since the first quarter of 2019.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Lending and other client related processing costs
|
|
$
|
9,158
|
|
|
$
|
5,177
|
|
|
76.9
|
%
|
Correspondent bank fees
|
|
3,986
|
|
|
3,744
|
|
|
6.5
|
|
||
Investment banking activities
|
|
3,030
|
|
|
4,185
|
|
|
(27.6
|
)
|
||
Trade order execution costs
|
|
2,745
|
|
|
2,516
|
|
|
9.1
|
|
||
Data processing services
|
|
3,454
|
|
|
2,899
|
|
|
19.1
|
|
||
Telephone
|
|
2,227
|
|
|
2,741
|
|
|
(18.8
|
)
|
||
Dues and publications
|
|
1,130
|
|
|
1,524
|
|
|
(25.9
|
)
|
||
Postage and supplies
|
|
856
|
|
|
770
|
|
|
11.2
|
|
||
Other
|
|
14,117
|
|
|
9,980
|
|
|
41.5
|
|
||
Total other noninterest expense
|
|
$
|
40,703
|
|
|
$
|
33,536
|
|
|
21.4
|
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Net interest income (1)
|
|
$
|
(21
|
)
|
|
$
|
(11
|
)
|
|
90.9
|
%
|
Noninterest losses (income) (1)
|
|
2,491
|
|
|
(2,270
|
)
|
|
NM
|
|
||
Noninterest expense (1)
|
|
140
|
|
|
379
|
|
|
(63.1
|
)
|
||
Carried interest allocation (2)
|
|
(637
|
)
|
|
(978
|
)
|
|
(34.9
|
)
|
||
Net losses (income) attributable to noncontrolling interests
|
|
$
|
1,973
|
|
|
$
|
(2,880
|
)
|
|
(168.5
|
)
|
|
NM
|
Not meaningful
|
(1)
|
Represents noncontrolling interests’ share in net interest income, noninterest income or loss and noninterest expense.
|
(2)
|
Represents the preferred allocation of income (or change in income) earned by us as the general partner of certain consolidated funds.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Net interest income
|
|
$
|
463,835
|
|
|
$
|
445,876
|
|
|
4.0
|
%
|
Provision for credit losses
|
|
(194,411
|
)
|
|
(26,805
|
)
|
|
NM
|
|
||
Noninterest income
|
|
166,834
|
|
|
152,861
|
|
|
9.1
|
|
||
Noninterest expense
|
|
(224,855
|
)
|
|
(198,683
|
)
|
|
13.2
|
|
||
Income before income tax expense
|
|
$
|
211,403
|
|
|
$
|
373,249
|
|
|
(43.4
|
)
|
Total average loans, amortized cost
|
|
$
|
29,137,484
|
|
|
$
|
24,798,197
|
|
|
17.5
|
|
Total average assets
|
|
61,813,129
|
|
|
50,132,098
|
|
|
23.3
|
|
||
Total average deposits
|
|
59,217,433
|
|
|
47,596,868
|
|
|
24.4
|
|
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Net interest income
|
|
$
|
15,164
|
|
|
$
|
11,981
|
|
|
26.6
|
%
|
(Provision for) reduction of credit losses
|
|
(54,490
|
)
|
|
984
|
|
|
NM
|
|
||
Noninterest income
|
|
900
|
|
|
510
|
|
|
76.5
|
|
||
Noninterest expense
|
|
(10,090
|
)
|
|
(7,414
|
)
|
|
36.1
|
|
||
(Loss) income before income tax expense
|
|
$
|
(48,516
|
)
|
|
$
|
6,061
|
|
|
NM
|
|
Total average loans, amortized cost
|
|
$
|
3,857,478
|
|
|
$
|
3,085,883
|
|
|
25.0
|
|
Total average assets
|
|
3,892,400
|
|
|
3,109,275
|
|
|
25.2
|
|
||
Total average deposits
|
|
1,922,663
|
|
|
1,491,234
|
|
|
28.9
|
|
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Net interest income
|
|
$
|
21
|
|
|
$
|
6
|
|
|
NM
|
|
Noninterest income
|
|
4,918
|
|
|
24,845
|
|
|
(80.2
|
)
|
||
Noninterest expense
|
|
(8,585
|
)
|
|
(5,782
|
)
|
|
48.5
|
|
||
(Loss) income before income tax expense
|
|
$
|
(3,646
|
)
|
|
$
|
19,069
|
|
|
(119.1
|
)
|
Total average assets
|
|
$
|
447,201
|
|
|
$
|
378,732
|
|
|
18.1
|
|
|
•
|
Net losses on investment securities of $5.9 million for the three months ended March 31, 2020, compared to net gains of $15.9 million for the comparable 2019 period. The net losses on investment securities of $5.9 million were primarily driven by a downward valuation adjustment for illiquid investments held in the private managed funds and companies of our portfolios due to the current market volatility. The downward valuation adjustment was offset by unrealized net valuation increases from private company investments held in our strategic venture capital funds as well as in our managed funds of funds portfolio, and
|
•
|
Fund management and lending related fees of $10.0 million for the three months ended March 31, 2020, compared to $8.8 million for the comparable 2019 period.
|
|
|
Three months ended March 31,
|
|||||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
|
% Change
|
|||||
Net interest income
|
|
$
|
201
|
|
|
$
|
442
|
|
|
(54.5
|
)%
|
Noninterest income
|
|
62,677
|
|
|
68,117
|
|
|
(8.0
|
)
|
||
Noninterest expense
|
|
(62,037
|
)
|
|
(60,540
|
)
|
|
2.5
|
|
||
Income before income tax expense
|
|
$
|
841
|
|
|
$
|
8,019
|
|
|
(89.5
|
)
|
Total average assets
|
|
$
|
483,648
|
|
|
$
|
300,332
|
|
|
61.0
|
|
•
|
A $4.3 million decrease in gains on investment securities reflective of net losses on investment securities for the three months ended March 31, 2020, compared to net gains for the comparable 2019 period, driven by the COVID-19 market conditions towards the end of the first quarter of 2020, and
|
•
|
A $2.9 million decrease in investment banking revenues reflective of a decrease in investment banking deals due to the impact of COVID-19 on the market, partially offset by
|
•
|
A $1.9 million increase in commissions due primarily to an increase in exchanges and trading volumes in derivatives and convertible securities driven by market volatility due to the impact of COVID-19.
|
|
|
March 31, 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
|
|
$
|
4,043,840
|
|
|
2.11
|
%
|
|
$
|
110,935
|
|
|
1.76
|
%
|
|
$
|
1,626,096
|
|
|
2.31
|
%
|
|
$
|
2,306,809
|
|
|
1.98
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. agency debentures
|
|
101,687
|
|
|
2.28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101,687
|
|
|
2.28
|
|
|
—
|
|
|
—
|
|
|||||
Foreign government debt securities
|
|
22,152
|
|
|
(0.82
|
)
|
|
22,152
|
|
|
(0.82
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency-issued mortgage-backed securities
|
|
4,943,512
|
|
|
2.76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,943,512
|
|
|
2.76
|
|
|||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,465,675
|
|
|
2.58
|
|
|
—
|
|
|
—
|
|
|
1,094
|
|
|
3.26
|
|
|
—
|
|
|
—
|
|
|
1,464,581
|
|
|
2.58
|
|
|||||
Agency-issued commercial mortgage-backed securities
|
|
2,071,198
|
|
|
2.37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
803,536
|
|
|
2.25
|
|
|
1,267,662
|
|
|
2.45
|
|
|||||
Total
|
|
$
|
12,648,064
|
|
|
2.46
|
|
|
$
|
133,087
|
|
|
1.33
|
|
|
$
|
1,627,190
|
|
|
2.31
|
|
|
$
|
3,212,032
|
|
|
2.06
|
|
|
$
|
7,675,755
|
|
|
2.67
|
|
|
|
March 31, 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
|
|
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
|
|
$
|
453,353
|
|
|
2.62
|
%
|
|
$
|
2,622
|
|
|
4.07
|
%
|
|
$
|
142,990
|
|
|
2.52
|
%
|
|
$
|
307,741
|
|
|
2.69
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency-issued mortgage-backed securities
|
|
6,662,878
|
|
|
2.90
|
|
|
11,853
|
|
|
2.77
|
|
|
50,777
|
|
|
1.88
|
|
|
685,374
|
|
|
2.47
|
|
|
5,914,874
|
|
|
2.96
|
|
|||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,482,205
|
|
|
1.79
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
661,217
|
|
|
1.62
|
|
|
820,988
|
|
|
1.92
|
|
|||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
170,774
|
|
|
0.74
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
170,774
|
|
|
0.74
|
|
|||||
Agency-issued commercial mortgage-backed securities
|
|
2,644,968
|
|
|
3.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,565
|
|
|
3.56
|
|
|
2,542,403
|
|
|
3.03
|
|
|||||
Municipal bonds and notes
|
|
2,160,341
|
|
|
3.54
|
|
|
30,719
|
|
|
2.22
|
|
|
134,007
|
|
|
2.63
|
|
|
441,995
|
|
|
3.05
|
|
|
1,553,620
|
|
|
3.78
|
|
|||||
Total
|
|
$
|
13,574,519
|
|
|
2.87
|
|
|
$
|
45,194
|
|
|
2.47
|
|
|
$
|
327,774
|
|
|
2.47
|
|
|
$
|
2,198,892
|
|
|
2.41
|
|
|
$
|
11,002,659
|
|
|
2.98
|
|
|
|
March 31, 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)
|
|
$
|
85,336
|
|
|
$
|
22,025
|
|
|
$
|
87,180
|
|
|
$
|
22,482
|
|
Unconsolidated venture capital and private equity fund investments (2)
|
|
171,930
|
|
|
171,930
|
|
|
178,217
|
|
|
178,217
|
|
||||
Other investments without a readily determinable fair value (3)
|
|
52,666
|
|
|
52,666
|
|
|
55,255
|
|
|
55,255
|
|
||||
Other equity securities in public companies (fair value accounting (4)
|
|
26,899
|
|
|
26,391
|
|
|
59,200
|
|
|
59,056
|
|
||||
Non-marketable securities (equity method accounting) (5):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
206,495
|
|
|
126,035
|
|
|
215,367
|
|
|
131,403
|
|
||||
Debt funds
|
|
6,910
|
|
|
6,910
|
|
|
7,271
|
|
|
7,271
|
|
||||
Other investments
|
|
149,557
|
|
|
149,557
|
|
|
152,863
|
|
|
152,863
|
|
||||
Investments in qualified affordable housing projects, net
|
|
500,802
|
|
|
500,802
|
|
|
458,476
|
|
|
458,476
|
|
||||
Total non-marketable and other equity securities
|
|
$
|
1,200,595
|
|
|
$
|
1,056,316
|
|
|
$
|
1,213,829
|
|
|
$
|
1,065,023
|
|
|
(1)
|
The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at March 31, 2020 and December 31, 2019:
|
|
|
March 31, 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
|
|
$
|
5,337
|
|
|
$
|
670
|
|
|
$
|
5,729
|
|
|
$
|
720
|
|
Capital Preferred Return Fund, LP
|
|
44,696
|
|
|
9,633
|
|
|
45,341
|
|
|
9,772
|
|
||||
Growth Partners, LP
|
|
35,169
|
|
|
11,708
|
|
|
35,976
|
|
|
11,976
|
|
||||
CP I, LP
|
|
134
|
|
|
14
|
|
|
134
|
|
|
14
|
|
||||
Total consolidated venture capital and private equity fund investments
|
|
$
|
85,336
|
|
|
$
|
22,025
|
|
|
$
|
87,180
|
|
|
$
|
22,482
|
|
(2)
|
The carrying value represents investments in 196 and 205 funds (primarily venture capital funds) at March 31, 2020 and December 31, 2019, respectively, where our ownership interest is typically less than 5% of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships' operating activities and financial policies. Our unconsolidated venture capital and private equity fund investments are carried at fair value based
|
(3)
|
Investments classified as "Other investments without a readily determinable fair value" 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. For further details on the carrying value of these investments refer to Note 6 — “Investment Securities" of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report.
|
(4)
|
Investments classified as other equity securities (fair value accounting) represent shares held in public companies as a result of exercising public equity warrant assets and direct equity investments in public companies held by our consolidated funds. Changes in the fair value recognized through net income.
|
(5)
|
The following table shows the carrying value and our ownership percentage of each investment at March 31, 2020 and December 31, 2019 (equity method accounting):
|
|
|
March 31, 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
|
|
$
|
3,277
|
|
|
$
|
3,086
|
|
|
$
|
3,612
|
|
|
$
|
3,387
|
|
Strategic Investors Fund III, LP
|
|
14,487
|
|
|
11,787
|
|
|
15,668
|
|
|
12,701
|
|
||||
Strategic Investors Fund IV, LP
|
|
25,037
|
|
|
21,141
|
|
|
27,064
|
|
|
22,780
|
|
||||
Strategic Investors Fund V, LP
|
|
44,815
|
|
|
23,528
|
|
|
46,830
|
|
|
24,586
|
|
||||
CP II, LP (i)
|
|
5,103
|
|
|
3,073
|
|
|
5,907
|
|
|
3,567
|
|
||||
Other venture capital and private equity fund investments
|
|
113,776
|
|
|
63,420
|
|
|
116,286
|
|
|
64,382
|
|
||||
Total venture capital and private equity fund investments
|
|
$
|
206,495
|
|
|
$
|
126,035
|
|
|
$
|
215,367
|
|
|
$
|
131,403
|
|
Debt funds:
|
|
|
|
|
|
|
|
|
||||||||
Gold Hill Capital 2008, LP (ii)
|
|
$
|
5,255
|
|
|
$
|
5,255
|
|
|
$
|
5,525
|
|
|
$
|
5,525
|
|
Other debt funds
|
|
1,655
|
|
|
1,655
|
|
|
1,746
|
|
|
1,746
|
|
||||
Total debt funds
|
|
$
|
6,910
|
|
|
$
|
6,910
|
|
|
$
|
7,271
|
|
|
$
|
7,271
|
|
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
SPD Silicon Valley Bank Co., Ltd.
|
|
$
|
73,453
|
|
|
$
|
73,453
|
|
|
$
|
74,190
|
|
|
$
|
74,190
|
|
Other investments
|
|
76,104
|
|
|
76,104
|
|
|
78,673
|
|
|
78,673
|
|
||||
Total other investments
|
|
$
|
149,557
|
|
|
$
|
149,557
|
|
|
$
|
152,863
|
|
|
$
|
152,863
|
|
|
(i)
|
Our ownership includes direct ownership interest of 1.3 percent and indirect ownership interest of 3.8 percent through our investments in Strategic Investors Fund II, LP.
|
(ii)
|
Our ownership includes direct ownership interest of 11.5 percent in the fund and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of 4.0 percent.
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
||||||
Private equity/venture capital
|
|
$
|
18,868,875
|
|
|
52.5
|
%
|
|
$
|
17,712,797
|
|
|
53.1
|
%
|
Investor dependent:
|
|
|
|
|
|
|
|
|
|
|
||||
Early stage
|
|
1,806,011
|
|
|
5.0
|
|
|
1,653,425
|
|
|
5.0
|
|
||
Mid stage
|
|
1,399,209
|
|
|
3.9
|
|
|
1,066,783
|
|
|
3.2
|
|
||
Later stage
|
|
2,031,490
|
|
|
5.7
|
|
|
1,698,676
|
|
|
5.1
|
|
||
Total investor dependent
|
|
5,236,710
|
|
|
14.6
|
|
|
4,418,884
|
|
|
13.3
|
|
||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
|
|
||||
Sponsor led buyout
|
|
2,121,007
|
|
|
5.9
|
|
|
2,203,020
|
|
|
6.6
|
|
||
Other
|
|
2,756,295
|
|
|
7.7
|
|
|
2,252,847
|
|
|
6.8
|
|
||
Total cash flow dependent
|
|
4,877,302
|
|
|
13.6
|
|
|
4,455,867
|
|
|
13.4
|
|
||
Private bank
|
|
3,669,295
|
|
|
10.2
|
|
|
3,489,219
|
|
|
10.4
|
|
||
Balance sheet dependent
|
|
1,850,941
|
|
|
5.1
|
|
|
1,297,304
|
|
|
3.9
|
|
||
Premium wine
|
|
1,056,927
|
|
|
2.9
|
|
|
1,063,512
|
|
|
3.2
|
|
||
Other
|
|
408,035
|
|
|
1.1
|
|
|
890,121
|
|
|
2.7
|
|
||
Total loans (1)
|
|
$
|
35,968,085
|
|
|
100.0
|
|
|
$
|
33,327,704
|
|
|
100.0
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
|
|
March 31, 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
|
|
$
|
981,072
|
|
|
$
|
1,267,382
|
|
|
$
|
2,387,759
|
|
|
$
|
2,141,652
|
|
|
$
|
12,091,010
|
|
|
$
|
18,868,875
|
|
Investor dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Early stage
|
|
1,295,261
|
|
|
255,585
|
|
|
160,511
|
|
|
55,721
|
|
|
38,933
|
|
|
1,806,011
|
|
||||||
Mid stage
|
|
638,456
|
|
|
409,596
|
|
|
266,471
|
|
|
49,686
|
|
|
35,000
|
|
|
1,399,209
|
|
||||||
Later stage
|
|
176,617
|
|
|
408,542
|
|
|
732,854
|
|
|
328,332
|
|
|
385,145
|
|
|
2,031,490
|
|
||||||
Total investor dependent
|
|
2,110,334
|
|
|
1,073,723
|
|
|
1,159,836
|
|
|
433,739
|
|
|
459,078
|
|
|
5,236,710
|
|
||||||
Cash flow dependent:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sponsor led buyout
|
|
20,906
|
|
|
72,495
|
|
|
510,951
|
|
|
700,091
|
|
|
816,564
|
|
|
2,121,007
|
|
||||||
Other
|
|
154,084
|
|
|
147,981
|
|
|
339,014
|
|
|
693,555
|
|
|
1,421,661
|
|
|
2,756,295
|
|
||||||
Total cash flow dependent
|
|
174,990
|
|
|
220,476
|
|
|
849,965
|
|
|
1,393,646
|
|
|
2,238,225
|
|
|
4,877,302
|
|
||||||
Private bank
|
|
2,939,208
|
|
|
397,068
|
|
|
169,544
|
|
|
50,576
|
|
|
112,899
|
|
|
3,669,295
|
|
||||||
Balance sheet dependent
|
|
295,227
|
|
|
371,825
|
|
|
406,629
|
|
|
296,573
|
|
|
480,687
|
|
|
1,850,941
|
|
||||||
Premium wine
|
|
244,732
|
|
|
246,379
|
|
|
277,142
|
|
|
138,486
|
|
|
150,188
|
|
|
1,056,927
|
|
||||||
Other
|
|
60,953
|
|
|
62,374
|
|
|
95,791
|
|
|
119,109
|
|
|
69,808
|
|
|
408,035
|
|
||||||
Total loans (1)
|
|
$
|
6,806,516
|
|
|
$
|
3,639,227
|
|
|
$
|
5,346,666
|
|
|
$
|
4,573,781
|
|
|
$
|
15,601,895
|
|
|
$
|
35,968,085
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
|
|
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
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Nonperforming, past due, and restructured loans:
|
|
|
|
|
||||
Nonaccrual loans
|
|
$
|
50,607
|
|
|
$
|
102,669
|
|
Loans past due 90 days or more still accruing interest
|
|
4,918
|
|
|
3,515
|
|
||
Total nonperforming loans (1)
|
|
55,525
|
|
|
106,184
|
|
||
OREO and other foreclosed assets
|
|
—
|
|
|
—
|
|
||
Total nonperforming assets
|
|
$
|
55,525
|
|
|
$
|
106,184
|
|
Performing TDRs
|
|
$
|
23,460
|
|
|
$
|
31,990
|
|
Nonperforming loans as a percentage of total loans (1)
|
|
0.15
|
%
|
|
0.32
|
%
|
||
Nonperforming assets as a percentage of total assets
|
|
0.07
|
|
|
0.15
|
|
||
Allowance for credit losses for loans
|
|
$
|
548,963
|
|
|
$
|
304,924
|
|
As a percentage of total loans (1)
|
|
1.53
|
%
|
|
0.91
|
%
|
||
As a percentage of total nonperforming loans (1)
|
|
988.68
|
|
|
287.17
|
|
||
Allowance for credit losses for nonaccrual loans
|
|
$
|
34,876
|
|
|
$
|
44,859
|
|
As a percentage of total loans (1)
|
|
0.10
|
%
|
|
0.13
|
%
|
||
As a percentage of total nonperforming loans (1)
|
|
62.81
|
|
|
42.25
|
|
||
Allowance for credit losses for total performing loans
|
|
$
|
514,087
|
|
|
$
|
260,065
|
|
As a percentage of total loans (1)
|
|
1.43
|
%
|
|
0.78
|
%
|
||
As a percentage of total performing loans (1)
|
|
1.43
|
|
|
0.78
|
|
||
Total loans (1)
|
|
$
|
35,968,085
|
|
|
$
|
33,327,704
|
|
Total performing loans (1)
|
|
35,912,560
|
|
|
33,221,520
|
|
||
Allowance for credit losses for unfunded credit commitments (2)
|
|
84,690
|
|
|
67,656
|
|
||
As a percentage of total unfunded credit commitments
|
|
0.34
|
%
|
|
0.28
|
%
|
||
Total unfunded credit commitments (3)
|
|
$
|
24,668,310
|
|
|
$
|
24,521,920
|
|
|
(1)
|
For the quarter ended March 31, 2020, loan amounts are disclosed, and ratios are calculated, using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed, and ratios calculated, using the gross basis.
|
(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 “provision for credit losses” in the statement of income. See “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 March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Balance, beginning of period (1)
|
|
$
|
102,669
|
|
|
$
|
94,142
|
|
Additions
|
|
36,346
|
|
|
50,857
|
|
||
Paydowns and other reductions
|
|
(62,677
|
)
|
|
(6,481
|
)
|
||
Charge-offs
|
|
(25,731
|
)
|
|
(4,895
|
)
|
||
Balance, end of period (1)
|
|
$
|
50,607
|
|
|
$
|
133,623
|
|
|
(1)
|
For the quarter ended March 31, 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.
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
% Change
|
|||||
Derivative assets (1)
|
|
$
|
472,525
|
|
|
$
|
332,814
|
|
|
42.0
|
%
|
Foreign exchange spot contract assets, gross
|
|
945,762
|
|
|
810,275
|
|
|
16.7
|
|
||
Accrued interest receivable
|
|
190,100
|
|
|
216,962
|
|
|
(12.4
|
)
|
||
FHLB and Federal Reserve Bank stock
|
|
116,323
|
|
|
60,258
|
|
|
93.0
|
|
||
Net deferred tax assets (2)
|
|
—
|
|
|
28,433
|
|
|
—
|
|
||
Accounts receivable
|
|
92,485
|
|
|
47,663
|
|
|
94.0
|
|
||
Other assets
|
|
241,860
|
|
|
248,828
|
|
|
(2.8
|
)
|
||
Total accrued interest receivable and other assets
|
|
$
|
2,059,055
|
|
|
$
|
1,745,233
|
|
|
18.0
|
|
|
(1)
|
See "Derivatives" section below.
|
(2)
|
See "Other Liabilities" section below.
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
% Change
|
|||||
Assets:
|
|
|
|
|
|
|
|||||
Equity warrant assets
|
|
$
|
152,710
|
|
|
$
|
165,473
|
|
|
(7.7
|
)%
|
Foreign exchange forward and option contracts
|
|
239,272
|
|
|
115,854
|
|
|
106.5
|
|
||
Client interest rate derivatives
|
|
80,543
|
|
|
28,811
|
|
|
179.6
|
|
||
Interest rate swaps
|
|
—
|
|
|
22,676
|
|
|
—
|
|
||
Total derivative assets
|
|
$
|
472,525
|
|
|
$
|
332,814
|
|
|
42.0
|
|
Liabilities:
|
|
|
|
|
|
|
|||||
Foreign exchange forward and option contracts
|
|
$
|
195,891
|
|
|
$
|
98,207
|
|
|
99.5
|
|
Client interest rate derivatives
|
|
31,533
|
|
|
14,154
|
|
|
122.8
|
|
||
Interest rate swaps
|
|
—
|
|
|
25,623
|
|
|
—
|
|
||
Total derivative liabilities
|
|
$
|
227,424
|
|
|
$
|
137,984
|
|
|
64.8
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Balance, beginning of period
|
|
$
|
165,473
|
|
|
$
|
149,238
|
|
New equity warrant assets
|
|
4,519
|
|
|
4,471
|
|
||
Non-cash changes in fair value, net
|
|
(5,472
|
)
|
|
16,238
|
|
||
Exercised equity warrant assets
|
|
(11,484
|
)
|
|
(7,317
|
)
|
||
Terminated equity warrant assets
|
|
(326
|
)
|
|
(415
|
)
|
||
Balance, end of period
|
|
$
|
152,710
|
|
|
$
|
162,215
|
|
(Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
% Change
|
|||||
Foreign exchange spot contract liabilities, gross
|
|
$
|
1,011,264
|
|
|
$
|
888,360
|
|
|
13.8
|
|
Accrued compensation
|
|
117,559
|
|
|
354,393
|
|
|
(66.8
|
)
|
||
Allowance for unfunded credit commitments
|
|
84,690
|
|
|
67,656
|
|
|
25.2
|
|
||
Derivative liabilities (1)
|
|
227,424
|
|
|
137,984
|
|
|
64.8
|
|
||
Net deferred tax liabilities
|
|
92,782
|
|
|
—
|
|
|
—
|
|
||
Other liabilities
|
|
667,234
|
|
|
593,359
|
|
|
12.5
|
|
||
Total other liabilities
|
|
$
|
2,200,953
|
|
|
$
|
2,041,752
|
|
|
7.8
|
|
|
(1)
|
See “Derivatives” section above.
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
(Dollars in thousands)
|
|
Total Balance
|
|
Level 3
|
|
Total Balance
|
|
Level 3
|
||||||||
Assets carried at fair value
|
|
$
|
13,404,754
|
|
|
$
|
149,992
|
|
|
$
|
14,672,330
|
|
|
$
|
161,172
|
|
As a percentage of total assets
|
|
17.9
|
%
|
|
0.2
|
%
|
|
20.7
|
%
|
|
0.2
|
%
|
||||
As a percentage of assets carried at fair value
|
|
|
|
1.1
|
|
|
|
|
1.1
|
|
||||||
Liabilities carried at fair value
|
|
$
|
227,424
|
|
|
$
|
—
|
|
|
$
|
137,984
|
|
|
$
|
—
|
|
As a percentage of total liabilities
|
|
0.3
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
—
|
%
|
|
|
March 31,
2020 |
|
December 31, 2019
|
|
Required Minimum (1)
|
|
Well Capitalized Minimum
|
||||
SVB Financial:
|
|
|
|
|
|
|
|
|
||||
CET 1 risk-based capital ratio (2)(3)
|
|
12.35
|
%
|
|
12.58
|
%
|
|
7.0
|
%
|
|
N/A
|
|
Tier 1 risk-based capital ratio (3)
|
|
13.35
|
|
|
13.43
|
|
|
8.5
|
|
|
6.0
|
|
Total risk-based capital ratio (3)
|
|
14.45
|
|
|
14.23
|
|
|
10.5
|
|
|
10.0
|
|
Tier 1 leverage ratio (2)(3)
|
|
9.00
|
|
|
9.06
|
|
|
4.0
|
|
|
N/A
|
|
Tangible common equity to tangible assets ratio (4)(5)
|
|
8.70
|
|
|
8.39
|
|
|
N/A
|
|
|
N/A
|
|
Tangible common equity to risk-weighted assets ratio (4)(5)
|
|
13.40
|
|
|
12.76
|
|
|
N/A
|
|
|
N/A
|
|
Bank:
|
|
|
|
|
|
|
|
|
||||
CET 1 risk-based capital ratio (3)
|
|
10.90
|
%
|
|
11.12
|
%
|
|
7.0
|
%
|
|
6.5
|
%
|
Tier 1 risk-based capital ratio (3)
|
|
10.90
|
|
|
11.12
|
|
|
8.5
|
|
|
8.0
|
|
Total risk-based capital ratio (3)
|
|
12.04
|
|
|
11.96
|
|
|
10.5
|
|
|
10.0
|
|
Tier 1 leverage ratio (3)
|
|
7.21
|
|
|
7.30
|
|
|
4.0
|
|
|
5.0
|
|
Tangible common equity to tangible assets ratio (4)(5)
|
|
7.63
|
|
|
7.24
|
|
|
N/A
|
|
|
N/A
|
|
Tangible common equity to risk-weighted assets ratio (4)(5)
|
|
11.99
|
|
|
11.31
|
|
|
N/A
|
|
|
N/A
|
|
|
(1)
|
Percentages represent the minimum capital ratios plus, as applicable, the fully phased-in 2.5% CET1 capital conservation buffer under the Capital Rules.
|
(2)
|
"Well-Capitalized Minimum" CET 1 risk-based capital and Tier 1 leverage ratios are not formally defined under applicable banking regulations for bank holding companies.
|
(3)
|
Capital ratios include regulatory capital phase-in of the allowance for credit losses under the 2020 CECL Interim Final Rule for periods beginning March 31, 2020.
|
(4)
|
See below for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets.
|
(5)
|
The Federal Reserve has not issued any minimum guidelines for the tangible common equity to tangible assets ratio or the tangible common equity to risk-weighted assets ratio, however, we believe these ratios provide meaningful supplemental information regarding our capital levels and are therefore provided above.
|
|
|
SVB Financial
|
|
Bank
|
||||||||||||
Non-GAAP tangible common equity and tangible assets
(Dollars in thousands, except ratios)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2020 |
|
December 31,
2019 |
||||||||
GAAP SVBFG stockholders’ equity
|
|
$
|
7,034,749
|
|
|
$
|
6,470,307
|
|
|
$
|
5,617,402
|
|
|
$
|
5,034,095
|
|
Less: preferred stock
|
|
340,138
|
|
|
340,138
|
|
|
—
|
|
|
—
|
|
||||
Less: intangible assets
|
|
185,895
|
|
|
187,240
|
|
|
—
|
|
|
—
|
|
||||
Tangible common equity
|
|
$
|
6,508,716
|
|
|
$
|
5,942,929
|
|
|
$
|
5,617,402
|
|
|
$
|
5,034,095
|
|
GAAP total assets
|
|
$
|
75,009,640
|
|
|
$
|
71,004,903
|
|
|
$
|
73,630,526
|
|
|
$
|
69,563,817
|
|
Less: intangible assets
|
|
185,895
|
|
|
187,240
|
|
|
—
|
|
|
—
|
|
||||
Tangible assets
|
|
$
|
74,823,745
|
|
|
$
|
70,817,663
|
|
|
$
|
73,630,526
|
|
|
$
|
69,563,817
|
|
Risk-weighted assets
|
|
$
|
48,578,473
|
|
|
$
|
46,577,485
|
|
|
$
|
46,839,951
|
|
|
$
|
44,502,150
|
|
Non-GAAP tangible common equity to tangible assets
|
|
8.70
|
%
|
|
8.39
|
%
|
|
7.63
|
%
|
|
7.24
|
%
|
||||
Non-GAAP tangible common equity to risk-weighted assets
|
|
13.40
|
|
|
12.76
|
|
|
11.99
|
|
|
11.31
|
|
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
|
2020
|
|
2019
|
||||
Average cash and cash equivalents
|
|
$
|
8,106,167
|
|
|
$
|
4,987,487
|
|
Percentage of total average assets
|
|
11.2
|
%
|
|
8.7
|
%
|
||
Net cash provided by operating activities
|
|
$
|
168,125
|
|
|
$
|
340,750
|
|
Net cash (used for) provided by investing activities
|
|
(599,041
|
)
|
|
904,427
|
|
||
Net cash provided by financing activities
|
|
3,210,581
|
|
|
2,250,167
|
|
||
Net increase in cash and cash equivalents
|
|
$
|
2,779,665
|
|
|
$
|
3,495,344
|
|
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
|
|||||||||||
March 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
+200
|
|
$
|
10,519,005
|
|
|
$
|
138,025
|
|
|
1.3
|
%
|
|
$
|
2,443,279
|
|
|
$
|
559,545
|
|
|
29.7
|
%
|
+100
|
|
10,600,353
|
|
|
219,373
|
|
|
2.1
|
|
|
2,160,226
|
|
|
276,492
|
|
|
14.7
|
|
||||
—
|
|
10,380,980
|
|
|
—
|
|
|
—
|
|
|
1,883,734
|
|
|
—
|
|
|
—
|
|
||||
-100
|
|
10,333,795
|
|
|
(47,185
|
)
|
|
(0.5
|
)
|
|
1,790,704
|
|
|
(93,030
|
)
|
|
(4.9
|
)
|
||||
-200
|
|
10,417,466
|
|
|
36,486
|
|
|
0.4
|
|
|
1,774,703
|
|
|
(109,031
|
)
|
|
(5.8
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
+200
|
|
$
|
9,930,270
|
|
|
$
|
(253,659
|
)
|
|
(2.5
|
)%
|
|
$
|
2,528,158
|
|
|
$
|
421,358
|
|
|
20.0
|
%
|
+100
|
|
10,056,711
|
|
|
(127,218
|
)
|
|
(1.2
|
)
|
|
2,314,686
|
|
|
207,886
|
|
|
9.9
|
|
||||
—
|
|
10,183,929
|
|
|
—
|
|
|
—
|
|
|
2,106,800
|
|
|
—
|
|
|
—
|
|
||||
-100
|
|
10,138,558
|
|
|
(45,371
|
)
|
|
(0.4
|
)
|
|
1,927,801
|
|
|
(178,999
|
)
|
|
(8.5
|
)
|
||||
-200
|
|
10,000,585
|
|
|
(183,344
|
)
|
|
(1.8
|
)
|
|
1,760,283
|
|
|
(346,517
|
)
|
|
(16.4
|
)
|
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)
|
||||||
January 31, 2020
|
|
62,655
|
|
|
$
|
245.94
|
|
|
62,655
|
|
|
$
|
334,590,536
|
|
February 29, 2020
|
|
181,568
|
|
|
245.70
|
|
|
181,568
|
|
|
289,979,534
|
|
||
March 31, 2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
244,223
|
|
|
$
|
245.76
|
|
|
244,223
|
|
|
$
|
289,979,534
|
|
|
(1)
|
On October 24, 2019, the Company announced that its Board of Directors had authorized a $350 million common stock repurchase program pursuant to which the Company may, from time to time and on or before the program’s expiration date, repurchase shares of its outstanding common stock in the open market, in privately-negotiated transactions, or otherwise, subject to applicable laws and regulations. The extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements, availability of funds, and other relevant considerations, as determined by the Company. The Company may, in its discretion, begin, suspend or terminate repurchases at any time prior to the program’s expiration, without any prior notice. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The new stock repurchase program expires on October 29, 2020.
|
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: May 11, 2020
|
|
/s/ DANIEL BECK
|
|
|
Daniel Beck
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
SVB Financial Group
|
|
|
|
Date: May 11, 2020
|
|
/s/ KAREN HON
|
|
|
Karen Hon
|
|
|
Chief Accounting Officer
|
|
|
(Principal Accounting Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of SVB Financial Group;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 11, 2020
|
|
/s/ GREG BECKER
|
|
|
Greg Becker
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of SVB Financial Group;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 11, 2020
|
|
/s/ DANIEL BECK
|
|
|
Daniel Beck
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
Date: May 11, 2020
|
|
/s/ GREG BECKER
|
|
|
Greg Becker
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: May 11, 2020
|
|
/s/ DANIEL BECK
|
|
|
Daniel Beck
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|