Noninterest Income (Tables)

12 Months Ended

Dec. 31, 2017

Other Income and Expenses [Abstract]

Summary of noninterest income

For the year ended December 31, 2017, noninterest income was $557.2 million, compared to $456.6 million and $472.8 million, for the comparable 2016 and 2015 periods.

	Year ended December 31,
(Dollars in thousands)	2017		2016		2015
Noninterest income:
Gains on investment securities, net	$	64,603	$	51,740	$	89,445
Gains on equity warrant assets, net	54,555		37,892		70,963
Foreign exchange fees	115,760		104,183		87,007
Credit card fees	76,543		68,205		56,657
Deposit service charges	58,715		52,524		46,683
Client investment fees	56,136		32,219		21,610
Lending related fees	43,265		33,395		32,536
Letters of credit and standby letters of credit fees	28,544		25,644		20,889
Other	59,110		50,750		47,004
Total noninterest income	$	557,231	$	456,552	$	472,794

Components of Gains and Losses (Realized and Unrealized) on Investment Securities

The following table presents the components of gains and losses (realized and unrealized) on investment securities in 2017, 2016 and 2015:

	Year ended December 31,
(Dollars in thousands)	2017			2016			2015
Gross gains on investment securities:
Available-for-sale securities, at fair value (1)	$	5,113		$	15,051		$	2,971
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments	34,093			25,041			32,399
Other venture capital investments	1,114			17			1,512
Other securities (fair value accounting)	991			691			9,180
Non-marketable securities (equity method accounting):
Venture capital and private equity fund investments	15,013			10,834			26,415
Debt funds	11,658			1,406			4,111
Other investments	3,181			15,739			2,791
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments	21,718			18,428			25,908
Other investments	4,111			293			2,599
Total gross gains on investment securities	96,992			87,500			107,886
Gross losses on investment securities:
Available-for-sale securities, at fair value (1)	(10,302		)	(2,856		)	(1,770		)
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments	(6,907		)	(19,077		)	(9,210		)
Other venture capital investments	(143		)	(38		)	(320		)
Other securities (fair value accounting)	(750		)	(781		)	(1,559		)
Non-marketable securities (equity method accounting):
Venture capital and private equity fund investments	(541		)	(6,764		)	(909		)
Debt funds	(2,708		)	(458		)	(774		)
Other investments	(9,457		)	(4,857		)	(3,146		)
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments (2)	(1,312		)	(591		)	(729		)
Other investments (3)	(269		)	(338		)	(24		)
Total gross losses on investment securities	(32,389		)	(35,760		)	(18,441		)
Gains on investment securities, net	$	64,603		$	51,740		$	89,445

(1) Includes realized gains and losses on sales of AFS securities that are recognized in the income statement. Unrealized gains and losses on AFS securities are recognized in other comprehensive income. The cost basis of AFS securities sold is determined on a specific identification basis.

(2) Includes OTTI of $1.3 million from the declines in value for 24 of the 235 investments held at December 31, 2017, $0.6 million from the declines in value for 26 of the 252 investments held at December 31, 2016 and $0.6 million from the declines in value for 22 of the 267 investments held at December 31, 2015. We concluded that any declines in value for the remaining investments were temporary, and as such, no OTTI was required to be recognized.

(3) No OTTI was recognized for the years ended December 31, 2017, 2016, and 2015, respectively. We concluded that any declines in value for the investments were temporary, and as such, no OTTI was required to be recognized.

A summary of gains and losses on investment securities for 2017, 2016 and 2015 is as follows:

	Year ended December 31,
(Dollars in thousands)	2017			2016		2015
Gains on non-marketable and other securities, net	$	69,792		$	39,545	$	88,244
(Losses) gains on sales of available-for-sale securities, net	(5,189		)	12,195		1,201
Gains on investment securities, net	$	64,603		$	51,740	$	89,445

Components of Gains on Equity Warrant Assets

A summary of gains on equity warrant assets, net, for 2017, 2016 and 2015 is as follows:

	Year ended December 31,
(Dollars in thousands)	2017			2016			2015
Equity warrant assets:
Gains on exercises, net	$	48,275		$	31,197		$	41,455
Cancellations and expirations	(4,422		)	(3,015		)	(1,040		)
Changes in fair value, net	10,702			9,710			30,548
Net gains on equity warrant assets	$	54,555		$	37,892		$	70,963

Components of Foreign Exchange Fees

A summary of foreign exchange fee income by instrument type for 2017, 2016 and 2015 is as follows:

	Year ended December 31,
(Dollars in thousands)	2017		2016		2015
Foreign exchange fees by instrument type:
Spot contract commissions	$	104,344	$	89,354	$	80,564
Forward contract commissions	10,934		14,004		6,414
Option premium fees	482		825		29
Total foreign exchange fees	$	115,760	$	104,183	$	87,007

Components of Credit Card Fees

A summary of credit card fees by instrument type for 2017, 2016 and 2015 is as follows:

	Year ended December 31,
(Dollars in thousands)	2017		2016		2015
Credit card fees by instrument type:
Card interchange fees, net	$	60,224	$	51,513	$	46,185
Merchant service fees	11,584		12,783		7,346
Card service fees	4,735		3,909		3,126
Total credit card fees	$	76,543	$	68,205	$	56,657

Components of Asset Management Fees

A summary of client investment fees by instrument type for 2017, 2016 and 2015 is as follows:

	Year ended December 31,
(Dollars in thousands)	2017		2016		2015
Client investment fees by type:
Sweep money market fees	$	28,485	$	15,147	$	9,347
Asset management fees	16,831		15,389		12,263
Client directed investment fees	10,820		1,683		—
Total client investment fees	$	56,136	$	32,219	$	21,610

Components of Lending Related Fees

A summary of lending related fees by instrument type for 2017, 2016 and 2015 is as follows:

	Year ended December 31,
(Dollars in thousands)	2017		2016		2015
Lending related fees by instrument type:
Unused commitment fees	$	34,110	$	25,654	$	24,025
Other	9,155		7,741		8,511
Total lending related fees	$	43,265	$	33,395	$	32,536

Summary of Other Noninterest Income

A summary of other noninterest income by instrument type for 2017, 2016 and 2015 is as follows:

	Year ended December 31,
(Dollars in thousands)	2017			2016			2015
Fund management fees	$	21,214		$	19,195		$	15,941
Valuation fee income	3,860			7,962			8,767
Gains on revaluation of client foreign currency instruments, net (1)	10,882			4,215			115
(Losses) gains on client foreign exchange forward contracts, net (1)	(9,969		)	(5,674		)	694
Gains (losses) on revaluation of internal foreign currency instruments, net (2)	33,161			(16,676		)	(12,735		)
(Losses) gains on internal foreign exchange forward contracts, net (2)	(32,286		)	16,136			12,377
Other service revenue	32,248			25,592			21,845
Total other noninterest income	$	59,110		$	50,750		$	47,004

(1) Represents the net revaluation of client foreign currency denominated financial instruments. We enter into client foreign exchange forward contracts to economically reduce our foreign exchange exposure related to client foreign currency denominated financial instruments.

(2) Represents the net revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash. We enter into internal foreign exchange forward contracts to economically reduce our foreign exchange exposure related to these foreign currency denominated financial instruments issued and held by us.