Noninterest Income (Tables)

9 Months Ended

Sep. 30, 2018

Other Income and Expenses [Abstract]

A summary of noninterest income for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2018		2017		2018		2017
Noninterest income:
Gains on investment securities, net	$	32,193	$	15,238	$	77,365	$	48,838
Gains on equity warrant assets, net	34,141		24,922		72,393		42,432
Foreign exchange fees	32,656		29,671		100,560		82,026
Credit card fees	24,121		20,270		68,739		56,099
Deposit service charges	19,588		14,508		56,081		43,046
Client investment fees	36,265		15,563		88,592		37,571
Lending related fees	10,675		15,404		30,938		32,874
Letters of credit and standby letters of credit fees	8,409		7,306		24,938		20,951
Other	12,022		15,896		38,671		41,128
Total noninterest income	$	210,070	$	158,778	$	558,277	$	404,965

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

A summary of gains and losses on investment securities for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three months ended September 30,					Nine months ended September 30,
(Dollars in thousands)	2018		2017			2018		2017
Gains on non-marketable and other equity securities, net	$	32,193	$	15,339		$	77,365	$	48,454
(Losses) gains on sales of available-for-sale securities, net	—		(101		)	—		384
Total gains on investment securities, net	$	32,193	$	15,238		$	77,365	$	48,838

Components of Gains on Equity Warrant Assets

A summary of net gains on equity warrant assets for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands)	2018			2017			2018			2017
Equity warrant assets:
Gains on exercises, net	$	18,287		$	7,449		$	42,808		$	22,482
Cancellations and expirations	(1,432		)	(757		)	(3,158		)	(3,614		)
Changes in fair value, net	17,286			18,230			32,743			23,564
Total net gains on equity warrant assets	$	34,141		$	24,922		$	72,393		$	42,432

Components of Foreign Exchange Fees

A summary of foreign exchange fee income by instrument type for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2018		2017		2018		2017
Foreign exchange fees by instrument type:
Spot contract commissions	$	30,041	$	27,700	$	92,791	$	73,707
Forward contract commissions	2,534		1,877		7,474		7,948
Option premium fees	81		94		295		371
Total foreign exchange fees	$	32,656	$	29,671	$	100,560	$	82,026

Components of Credit Card Fees

A summary of credit card fees by instrument type for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2018		2017		2018		2017
Credit card fees by instrument type:
Card interchange fees, net	$	18,849	$	16,179	$	54,547	$	44,182
Merchant service fees	3,679		2,930		10,010		8,553
Card service fees	1,593		1,161		4,182		3,364
Total credit card fees	$	24,121	$	20,270	$	68,739	$	56,099

Components of Asset Management Fees

A summary of client investment fees by instrument type for the three and nine months ended September 30, 2018 and 2017, is as follows:



	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2018		2017		2018		2017
Client investment fees by type:
Sweep money market fees	$	21,105	$	7,968	$	50,605	$	18,838
Asset management fees (1)	6,358		4,177		17,447		11,666
Repurchase agreement fees	8,802		3,418		20,540		7,067
Total client investment fees (2)	$	36,265	$	15,563	$	88,592	$	37,571


(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.

Components of Lending Related Fees

A summary of lending related fees by instrument type for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2018		2017		2018		2017
Lending related fees by instrument type:
Unused commitment fees	$	8,410	$	12,334	$	24,994	$	25,923
Other	2,265		3,070		5,944		6,951
Total lending related fees	$	10,675	$	15,404	$	30,938	$	32,874

Summary of Other Noninterest Income

A summary of other noninterest income by instrument type for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three months ended September 30,					Nine months ended September 30,
(Dollars in thousands)	2018		2017			2018		2017
Other noninterest income by instrument type:
Fund management fees	$	5,479	$	5,198		$	17,144	$	15,903
Net gains (losses) on revaluation of foreign currency instruments, net of foreign exchange forward contracts(1)	796		(100		)	985		1,455
Other service revenue	5,747		10,798			20,542		23,770
Total other noninterest income	$	12,022	$	15,896		$	38,671	$	41,128


(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.

Disaggregation of Revenue

The following tables present our revenues from contracts with customers disaggregated by revenue source and segment for the three and nine months ended September 30, 2018:



Three months ended September 30, 2018 (Dollars in thousands)	Global Commercial Bank		SVB Private Bank			SVB Capital		Other Income		Total
Revenue from contracts with customers:
Spot contract commissions	$	29,776	$	184		$	—	$	81	$	30,041
Card interchange fees, gross	33,905		—			—		108		34,013
Merchant service fees	3,677		2			—		—		3,679
Deposit service charges	19,207		24			—		357		19,588
Client investment fees	14,740		420			—		21,105		36,265
Fund management fees	—		—			5,479		—		5,479
Correspondent bank rebates	1,372		—			—		—		1,372
Total revenue from contracts with customers	$	102,677	$	630		$	5,479	$	21,651	$	130,437

Revenues outside the scope of ASC 606 (1)	11,446		(25		)	18,944		49,268		79,633
Total noninterest income	$	114,123	$	605		$	24,423	$	70,919	$	210,070


(1)	Amounts are accounted for under separate guidance than ASC 606.



Nine months ended September 30, 2018 (Dollars in thousands)	Global Commercial Bank		SVB Private Bank			SVB Capital		Other Income		Total
Revenue from contracts with customers:
Spot contract commissions	$	92,098	$	507		$	—	$	186	$	92,791
Card interchange fees, gross	95,088		—			—		311		95,399
Merchant service fees	10,008		2			—		—		10,010
Deposit service charges	54,633		83			—		1,365		56,081
Client investment fees	36,885		1,101			—		50,606		88,592
Fund management fees	—		—			17,144		—		17,144
Correspondent bank rebates	4,241		—			—		—		4,241
Total revenue from contracts with customers	$	292,953	$	1,693		$	17,144	$	52,468	$	364,258

Revenues outside the scope of ASC 606 (1)	33,761		(16		)	64,688		95,586		194,019
Total noninterest income	$	326,714	$	1,677		$	81,832	$	148,054	$	558,277


(1)	Amounts are accounted for under separate guidance than ASC 606.