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Noninterest Income (Tables)
 9 Months Ended
Sep. 30, 2019
Other Income and Expenses [Abstract]  
Summary of Noninterest Income Included below is a summary of noninterest income for the three and nine months ended September 30, 2019 and 2018:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2019
 
2018
 
2019
 
2018
Noninterest income:
 
 
 
 
 
 
 
 
Gains on investment securities, net
 
$
29,849

 
$
32,193

 
$
106,575

 
$
77,365

Gains on equity warrant assets, net
 
37,561

 
34,141

 
107,213

 
72,393

Client investment fees
 
46,679

 
36,265

 
136,905

 
88,592

Foreign exchange fees
 
40,309

 
32,656

 
116,863

 
100,560

Credit card fees
 
30,158

 
24,121

 
86,431

 
68,739

Deposit service charges
 
22,482

 
19,588

 
65,496

 
56,081

Lending related fees
 
11,707

 
10,675

 
36,857

 
30,938

Letters of credit and standby letters of credit fees
 
10,842

 
8,409

 
31,205

 
24,938

Investment banking revenue
 
38,516

 
—

 
137,005

 
—

Commissions
 
12,275

 
—

 
40,812

 
—

Other
 
13,631

 
12,022

 
42,773

 
38,671

Total noninterest income
 
$
294,009

 
$
210,070

 
$
908,135

 
$
558,277
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, 2019 and 2018 is as follows:
  
 
Three months ended September 30,

Nine months ended September 30,
(Dollars in thousands)
 
2019

2018

2019

2018
Gains on non-marketable and other equity securities, net
 
$
29,849

 
$
32,193

 
$
110,480

 
$
77,365

Losses on sales of available-for-sale securities, net
 
—

 
—

 
(3,905
)
 
—

Total gains on investment securities, net
 
$
29,849

 
$
32,193

 
$
106,575

 
$
77,365
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, 2019 and 2018 is as follows:
  
 
Three months ended September 30,

Nine months ended September 30,
(Dollars in thousands)
 
2019

2018

2019

2018
Equity warrant assets:
 
 
 
 
 
 
 
 
Gains on exercises, net
 
$
30,047

 
$
18,287

 
$
90,357

 
$
42,808

Terminations
 
(481
)
 
(1,432
)
 
(2,931
)
 
(3,158
)
Changes in fair value, net
 
7,995

 
17,286

 
19,787

 
32,743

Total net gains on equity warrant assets
 
$
37,561

 
$
34,141

 
$
107,213

 
$
72,393
Components of Asset Management Fees A summary of client investment fees by instrument type for the three and nine months ended September 30, 2019 and 2018 is as follows:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2019
 
2018
 
2019
 
2018
Client investment fees by type:
 
 
 
 
 
 
 
 
Sweep money market fees
 
$
26,202

 
$
21,105

 
$
79,698

 
$
50,605

Asset management fees (1)
 
7,256

 
6,358

 
20,883

 
17,447

Repurchase agreement fees
 
13,221

 
8,802

 
36,324

 
20,540

Total client investment fees (2)
 
$
46,679

 
$
36,265

 
$
136,905

 
$
88,592

 
 
(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 Foreign Exchange Fees A summary of foreign exchange fee income by instrument type for the three and nine months ended September 30, 2019 and 2018 is as follows:
 
 
Three months ended September 30,

Nine months ended September 30,
(Dollars in thousands)
 
2019

2018

2019

2018
Foreign exchange fees by instrument type:
 
 
 
 
 
 
 
 
Spot contract commissions
 
$
36,836

 
$
30,041

 
$
106,561

 
$
92,791

Forward contract commissions
 
3,371

 
2,534

 
10,144

 
7,474

Option premium fees
 
102

 
81

 
158

 
295

Total foreign exchange fees
 
$
40,309

 
$
32,656

 
$
116,863

 
$
100,560
Components of Credit Card Fees
A summary of credit card fees by instrument type for the three and nine months ended September 30, 2019 and 2018 is as follows:
 
 
Three months ended September 30,

Nine months ended September 30,
(Dollars in thousands)
 
2019

2018

2019

2018
Credit card fees by instrument type:
 
 
 
 
 
 
 
 
Card interchange fees, net
 
$
24,560

 
$
18,849

 
$
68,808

 
$
54,547

Merchant service fees
 
3,943

 
3,679

 
12,763

 
10,010

Card service fees
 
1,655

 
1,593

 
4,860

 
4,182

Total credit card fees
 
$
30,158

 
$
24,121

 
$
86,431

 
$
68,739
Components of Lending Related Fees A summary of lending related fees by instrument type for the three and nine months ended September 30, 2019 and 2018 is as follows:
 
 
Three months ended September 30,

Nine months ended September 30,
(Dollars in thousands)
 
2019

2018

2019

2018
Lending related fees by instrument type:
 
 
 
 
 
 
 
 
Unused commitment fees
 
$
8,339

 
$
8,410

 
$
25,060

 
$
24,994

Other
 
3,368

 
2,265

 
11,797

 
5,944

Total lending related fees
 
$
11,707

 
$
10,675

 
$
36,857

 
$
30,938
Schedule of Investment Banking Revenue
A summary of investment banking revenue by instrument type for the three and nine months ended September 30, 2019 and 2018 is as follows:
  
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2019
 
2018
 
2019
 
2018
Investment banking revenue:
 
 
 
 
 
 
 
 
Underwriting fees
 
$
31,016

 
$
—

 
$
109,371

 
$
—

Advisory fees
 
5,200

 
—

 
22,789

 
—

Private placements and other
 
2,300

 
—

 
4,845

 
—

Total investment banking revenue
 
$
38,516

 
$
—

 
$
137,005

 
$
—
Summary of Other Noninterest Income
A summary of other noninterest income by instrument type for the three and nine months ended September 30, 2019 and 2018 is as follows:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(Dollars in thousands)
 
2019
 
2018
 
2019
 
2018
Other noninterest income by instrument type:
 
 
 
 
 
 
 
 
Fund management fees
 
$
8,493

 
$
5,479

 
$
24,292

 
$
17,144

Net (losses) gains on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1)
 
(78
)
 
796

 
173

 
985

Other service revenue
 
5,216

 
5,747

 
18,308

 
20,542

Total other noninterest income
 
$
13,631

 
$
12,022

 
$
42,773

 
$
38,671

 
(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, 2019 and 2018:
Three months ended September 30, 2019
(Dollars in thousands)
 
Global
Commercial
Bank (2)
 
SVB Private  
Bank
 
SVB Capital (2)  
 
SVB
Leerink (2)
 
Other Items
 
Total      
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
Client investment fees
 
$
46,171

 
$
508

 
$
—

 
$
—

 
$
—

 
$
46,679

Spot contract commissions
 
36,644

 
89

 
—

 
—

 
103

 
36,836

Card interchange fees, gross
 
34,867

 
—

 
—

 
—

 
181

 
35,048

Merchant service fees
 
3,943

 
—

 
—

 
—

 
—

 
3,943

Deposit service charges
 
22,263

 
36

 
—

 
—

 
183

 
22,482

Investment banking revenue
 
—

 
—

 
—

 
38,516

 
—

 
38,516

Commissions
 
—

 
—

 
—

 
12,275

 
—

 
12,275

Fund management fees
 
—

 
—

 
7,063

 
1,430

 
—

 
8,493

Correspondent bank rebates
 
1,633

 
—

 
—

 
—

 
—

 
1,633

Total revenue from contracts with customers
 
$
145,521

 
$
633

 
$
7,063

 
$
52,221

 
$
467

 
$
205,905

Revenues outside the scope of ASC 606 (1)
 
15,508

 
1

 
27,892

 
726

 
43,977

 
88,104

Total noninterest income
 
$
161,029

 
$
634

 
$
34,955

 
$
52,947

 
$
44,444

 
$
294,009

 
(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 September 30, 2018
(Dollars in thousands)
 
Global
Commercial
Bank (2)
 
SVB Private  
Bank
 
SVB Capital (2)  
 
Other Items
 
Total      
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
Client investment fees (3)
 
$
35,845

 
$
420

 
$
—

 
$
—

 
$
36,265

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

Fund management fees
 
—

 
—

 
5,479

 
—

 
5,479

Correspondent bank rebates
 
1,372

 
—

 
—

 
—

 
1,372

Total revenue from contracts with customers
 
$
123,782

 
$
630

 
$
5,479

 
$
546

 
$
130,437

Revenues outside the scope of ASC 606 (1)
 
11,446

 
(25
)
 
18,944

 
49,268

 
79,633

Total noninterest income
 
$
135,228

 
$
605

 
$
24,423

 
$
49,814

 
$
210,070

 
(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 September 30, 2018, 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.


Nine months ended September 30, 2019
(Dollars in thousands)
 
Global
Commercial
Bank (2)
 
SVB Private  
Bank
 
SVB Capital (2)  
 
SVB
Leerink (2)
 
Other Items
 
Total      
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
Client investment fees
 
$
135,551

 
$
1,354

 
$
—

 
$
—

 
$
—

 
136,905

Spot contract commissions
 
105,877

 
376

 
—

 
—

 
308

 
106,561

Card interchange fees, gross
 
115,468

 
—

 
—

 
—

 
518

 
115,986

Merchant service fees
 
12,764

 
—

 
—

 
—

 
—

 
12,764

Deposit service charges
 
64,806

 
104

 
—

 
—

 
586

 
65,496

Investment banking revenue
 
—

 
—

 
—

 
137,005

 
—

 
137,005

Commissions
 
—

 
—

 
—

 
40,812

 
—

 
40,812

Fund management fees
 
—

 
—

 
20,050

 
4,242

 
—

 
24,292

Correspondent bank rebates
 
4,712

 
—

 
—

 
—

 
—

 
4,712

Total revenue from contracts with customers
 
$
439,178

 
$
1,834

 
$
20,050

 
$
182,059

 
$
1,412

 
$
644,533

Revenues outside the scope of ASC 606 (1)
 
32,314

 
(5
)
 
79,810

 
6,005

 
145,478

 
263,602

Total noninterest income
 
$
471,492

 
$
1,829

 
$
99,860

 
$
188,064

 
$
146,890

 
$
908,135

 
(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."
Nine months ended September 30, 2018
(Dollars in thousands)
 
Global
Commercial
Bank (2)
 
SVB Private  
Bank
 
SVB Capital (2)  
 
Other Items
 
Total      
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
Client investment fees (3)
 
$
87,491

 
$
1,101

 
$
—

 
$
—

 
$
88,592

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

Fund management fees
 
—

 
—

 
17,144

 
—

 
17,144

Correspondent bank rebates
 
4,241

 
—

 
—

 
—

 
4,241

Total revenue from contracts with customers
 
$
343,559

 
$
1,693

 
$
17,144

 
$
1,862

 
$
364,258

Revenues outside the scope of ASC 606 (1)
 
33,761

 
(16
)
 
64,688

 
95,586

 
194,019

Total noninterest income
 
$
377,320

 
$
1,677

 
$
81,832

 
$
97,448

 
$
558,277

 
(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."