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Noninterest Income (Tables)
 6 Months Ended
Jun. 30, 2020
Other Income and Expenses [Abstract]  
Summary of Noninterest Income Included below is a summary of noninterest income for the three and six months ended June 30, 2020 and 2019:
 
 
Three months ended June 30,
 
Six months ended June 30,
(Dollars in thousands)
 
2020
 
2019
 
2020
 
2019
Noninterest income:
 
 
 
 
 
 
 
 
Gains on investment securities, net
 
$
34,868

 
$
47,698

 
$
80,923

 
$
76,726

Gains on equity warrant assets, net
 
26,506

 
48,347

 
39,901

 
69,652

Client investment fees
 
31,885

 
45,744

 
75,278

 
90,226

Foreign exchange fees
 
36,256

 
38,506

 
83,761

 
76,554

Credit card fees
 
21,288

 
28,790

 
49,592

 
56,273

Deposit service charges
 
20,511

 
22,075

 
45,100

 
43,014

Lending related fees
 
11,164

 
11,213

 
24,289

 
25,150

Letters of credit and standby letters of credit fees
 
11,421

 
11,009

 
22,963

 
20,363

Investment banking revenue
 
141,503

 
48,694

 
188,370

 
98,489

Commissions
 
16,918

 
14,429

 
32,940

 
28,537

Other
 
16,528

 
17,245

 
27,665

 
29,142

Total noninterest income
 
$
368,848

 
$
333,750

 
$
670,782

 
$
614,126
Components of Gains and Losses (Realized and Unrealized) on Investment Securities A summary of gains and losses on investment securities for the three and six months ended June 30, 2020 and 2019 is as follows:
  
 
Three months ended June 30,

Six months ended June 30,
(Dollars in thousands)
 
2020

2019

2020

2019
Gains on non-marketable and other equity securities, net
 
$
34,868

 
$
47,973

 
$
19,758

 
$
80,631

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

 
(275
)
 
61,165

 
(3,905
)
Total gains on investment securities, net
 
$
34,868

 
$
47,698

 
$
80,923

 
$
76,726
Components of Gains on Equity Warrant Assets A summary of net gains on equity warrant assets for the three and six months ended June 30, 2020 and 2019 is as follows:
  
 
Three months ended June 30,

Six months ended June 30,
(Dollars in thousands)
 
2020

2019

2020

2019
Equity warrant assets:
 
 
 
 
 
 
 
 
Gains on exercises, net
 
$
9,435

 
$
40,226

 
$
32,730

 
$
49,180

Terminations
 
(439
)
 
(1,045
)
 
(872
)
 
(1,884
)
Changes in fair value, net
 
17,510

 
9,166

 
8,043

 
22,356

Total net gains on equity warrant assets
 
$
26,506

 
$
48,347

 
$
39,901

 
$
69,652
Components of Asset Management Fees A summary of client investment fees by instrument type for the three and six months ended June 30, 2020 and 2019 is as follows:
 
 
Three months ended June 30,
 
Six months ended June 30,
(Dollars in thousands)
 
2020
 
2019
 
2020
 
2019
Client investment fees by type:
 
 
 
 
 
 
 
 
Sweep money market fees
 
$
19,413

 
$
26,952

 
$
42,462

 
$
53,496

Asset management fees (1)
 
11,596

 
6,956

 
20,733

 
13,628

Repurchase agreement fees
 
876

 
11,836

 
12,083

 
23,102

Total client investment fees (2)
 
$
31,885

 
$
45,744

 
$
75,278

 
$
90,226

 
 
(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 that 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 six months ended June 30, 2020 and 2019 is as follows:
 
 
Three months ended June 30,

Six months ended June 30,
(Dollars in thousands)
 
2020

2019

2020

2019
Foreign exchange fees by instrument type:
 
 
 
 
 
 
 
 
Spot contract commissions
 
$
33,093

 
$
34,696

 
$
74,027

 
$
69,725

Forward contract commissions
 
3,052

 
3,778

 
9,391

 
6,773

Option premium fees
 
111

 
32

 
343

 
56

Total foreign exchange fees
 
$
36,256

 
$
38,506

 
$
83,761

 
$
76,554
Components of Credit Card Fees
A summary of credit card fees by instrument type for the three and six months ended June 30, 2020 and 2019 is as follows:
 
 
Three months ended June 30,

Six months ended June 30,
(Dollars in thousands)
 
2020

2019

2020

2019
Credit card fees by instrument type:
 
 
 
 
 
 
 
 
Card interchange fees, net
 
$
15,314

 
$
22,855

 
$
37,089

 
$
44,248

Merchant service fees
 
5,030

 
4,286

 
10,057

 
8,821

Card service fees
 
944

 
1,649

 
2,446

 
3,204

Total credit card fees
 
$
21,288

 
$
28,790

 
$
49,592

 
$
56,273
Components of Lending Related Fees A summary of lending related fees by instrument type for the three and six months ended June 30, 2020 and 2019 is as follows:
 
 
Three months ended June 30,

Six months ended June 30,
(Dollars in thousands)
 
2020

2019

2020

2019
Lending related fees by instrument type:
 
 
 
 
 
 
 
 
Unused commitment fees
 
$
8,324

 
$
7,051

 
$
16,730

 
$
16,721

Other
 
2,840

 
4,162

 
7,559

 
8,429

Total lending related fees
 
$
11,164

 
$
11,213

 
$
24,289

 
$
25,150
Schedule of Investment Banking Revenue
A summary of investment banking revenue by instrument type for the three and six months ended June 30, 2020 and 2019 is as follows:
  
 
Three months ended June 30,
 
Six months ended June 30,
(Dollars in thousands)
 
2020
 
2019
 
2020
 
2019
Investment banking revenue:
 
 
 
 
 
 
 
 
Underwriting fees
 
$
131,085

 
$
42,584

 
$
162,375

 
$
78,356

Advisory fees
 
8,922

 
5,315

 
24,409

 
17,588

Private placements and other
 
1,496

 
795

 
1,586

 
2,545

Total investment banking revenue
 
$
141,503

 
$
48,694

 
$
188,370

 
$
98,489
Summary of Other Noninterest Income
A summary of other noninterest income by instrument type for the three and six months ended June 30, 2020 and 2019 is as follows:
 
 
Three months ended June 30,
 
Six months ended June 30,
(Dollars in thousands)
 
2020
 
2019
 
2020
 
2019
Other noninterest income by instrument type:
 
 
 
 
 
 
 
 
Fund management fees
 
$
8,845

 
$
7,758

 
$
16,753

 
$
15,799

Net gains (losses) on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1)
 
199

 
587

 
(45
)
 
251

Other service revenue
 
7,484

 
8,900

 
10,957

 
13,092

Total other noninterest income
 
$
16,528

 
$
17,245

 
$
27,665

 
$
29,142

 
(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 six months ended June 30, 2020 and 2019:
Three months ended June 30, 2020
(Dollars in thousands)
 
Global
Commercial
Bank (2)
 
SVB Private  
Bank
 
SVB Capital (2)  
 
SVB
Leerink (2)
 
Other Items
 
Total      
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
Client investment fees
 
$
31,308

 
$
577

 
$
—

 
$
—

 
$
—

 
$
31,885

Spot contract commissions
 
32,865

 
98

 
—

 
—

 
130

 
33,093

Card interchange fees, gross
 
25,930

 
5

 
—

 
—

 
291

 
26,226

Merchant service fees
 
5,030

 
—

 
—

 
—

 
—

 
5,030

Deposit service charges
 
20,460

 
13

 
—

 
—

 
38

 
20,511

Investment banking revenue
 
—

 
—

 
—

 
141,503

 
—

 
141,503

Commissions
 
—

 
—

 
—

 
16,918

 
—

 
16,918

Fund management fees
 
—

 
—

 
7,415

 
1,430

 
—

 
8,845

Correspondent bank rebates
 
1,371

 
—

 
—

 
—

 
—

 
1,371

Total revenue from contracts with customers
 
$
116,964

 
$
693

 
$
7,415

 
$
159,851

 
$
459

 
$
285,382

Revenues outside the scope of ASC 606 (1)
 
16,510

 
(23
)
 
14,035

 
3,966

 
48,978

 
83,466

Total noninterest income
 
$
133,474

 
$
670

 
$
21,450

 
$
163,817

 
$
49,437

 
$
368,848

 
(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 June 30, 2019
(Dollars in thousands)
 
Global
Commercial
Bank (2)
 
SVB Private  
Bank
 
SVB Capital (2)  
 
SVB
Leerink (2)
 
Other Items
 
Total      
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
Client investment fees (3)
 
$
45,278

 
$
466

 
$
—

 
$
—

 
$
—

 
$
45,744

Spot contract commissions
 
34,428

 
165

 
—

 
—

 
103

 
34,696

Card interchange fees, gross
 
41,887

 
—

 
—

 
—

 
190

 
42,077

Merchant service fees
 
4,286

 
—

 
—

 
—

 
—

 
4,286

Deposit service charges
 
21,750

 
33

 
—

 
—

 
292

 
22,075

Investment banking revenue
 
—

 
—

 
—

 
48,694

 
—

 
48,694

Commissions
 
—

 
—

 
—

 
14,429

 
—

 
14,429

Fund management fees
 
—

 
—

 
6,328

 
1,430

 
—

 
7,758

Correspondent bank rebates
 
1,612

 
—

 
—

 
—

 
—

 
1,612

Total revenue from contracts with customers
 
$
149,241

 
$
664

 
$
6,328

 
$
64,553

 
$
585

 
$
221,371

Revenues outside the scope of ASC 606 (1)
 
8,364

 
22

 
33,731

 
2,447

 
67,815

 
112,379

Total noninterest income
 
$
157,605

 
$
686

 
$
40,059

 
$
67,000

 
$
68,400

 
$
333,750

 
(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 June 30, 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.
Six months ended June 30, 2020
(Dollars in thousands)
 
Global
Commercial
Bank (2)
 
SVB Private  
Bank
 
SVB Capital (2)  
 
SVB
Leerink (2)
 
Other Items
 
Total      
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
Client investment fees
 
$
74,044

 
$
1,234

 
$
—

 
$
—

 
$
—

 
$
75,278

Spot contract commissions
 
73,540

 
259

 
—

 
—

 
228

 
74,027

Card interchange fees, gross
 
61,654

 
12

 
—

 
—

 
857

 
62,523

Merchant service fees
 
10,057

 
—

 
—

 
—

 
—

 
10,057

Deposit service charges
 
44,698

 
40

 
—

 
—

 
362

 
45,100

Investment banking revenue
 
—

 
—

 
—

 
188,370

 
—

 
188,370

Commissions
 
—

 
—

 
—

 
32,940

 
—

 
32,940

Fund management fees
 
—

 
—

 
13,893

 
2,860

 
—

 
16,753

Correspondent bank rebates
 
2,774

 
—

 
—

 
—

 
—

 
2,774

Total revenue from contracts with customers
 
$
266,767

 
$
1,545

 
$
13,893

 
$
224,170

 
$
1,447

 
$
507,822

Revenues outside the scope of ASC 606 (1)
 
33,541

 
25

 
12,475

 
2,324

 
114,595

 
162,960

Total noninterest income
 
$
300,308

 
$
1,570

 
$
26,368

 
$
226,494

 
$
116,042

 
$
670,782

 
(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."

Six months ended June 30, 2019
(Dollars in thousands)
 
Global
Commercial
Bank (2)
 
SVB Private  
Bank
 
SVB Capital (2)  
 
SVB
Leerink (2)
 
Other Items
 
Total      
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
Client investment fees (3)
 
$
89,380

 
$
846

 
$
—

 
$
—

 
$
—

 
$
90,226

Spot contract commissions
 
69,233

 
288

 
—

 
—

 
204

 
69,725

Card interchange fees, gross
 
80,601

 
—

 
—

 
—

 
337

 
80,938

Merchant service fees
 
8,821

 
—

 
—

 
—

 
—

 
8,821

Deposit service charges
 
42,543

 
68

 
—

 
—

 
403

 
43,014

Investment banking revenue
 
—

 
—

 
—

 
98,489

 
—

 
98,489

Commissions
 
—

 
—

 
—

 
28,537

 
—

 
28,537

Fund management fees
 
—

 
—

 
12,987

 
2,812

 
—

 
15,799

Correspondent bank rebates
 
3,079

 
—

 
—

 
—

 
—

 
3,079

Total revenue from contracts with customers
 
$
293,657

 
$
1,202

 
$
12,987

 
$
129,838

 
$
944

 
$
438,628

Revenues outside the scope of ASC 606 (1)
 
16,808

 
(6
)
 
51,917

 
5,279

 
101,500

 
175,498

Total noninterest income
 
$
310,465

 
$
1,196

 
$
64,904

 
$
135,117

 
$
102,444

 
$
614,126

 
(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."
(3)
For the six months ended June 30, 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.