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Off-Balance Sheet Arrangements, Guarantees and Other Commitments
 9 Months Ended
Sep. 30, 2020
Disclosure Off Balance Sheet Arrangements Guarantees And Other Commitments Additional Information [Abstract]  
Off-Balance Sheet Arrangements, Guarantees and Other Commitments Off-Balance Sheet Arrangements, Guarantees and Other Commitments
In the normal course of business, we use financial instruments with off-balance sheet risk to meet the financing needs of our customers. These financial instruments include commitments to extend credit, commercial and standby letters of credit and commitments to invest in venture capital and private equity fund investments. These instruments involve, to varying degrees, elements of credit risk. Credit risk is defined as the possibility of sustaining a loss because other parties to the financial instrument fail to perform in accordance with the terms of the contract.
Commitments to Extend Credit
The following table summarizes information related to our commitments to extend credit at September 30, 2020 and December 31, 2019:
(Dollars in thousands)September 30, 2020December 31, 2019
Loan commitments available for funding: (1)
Fixed interest rate commitments$2,474,804 $2,434,042 
Variable interest rate commitments24,796,923 19,309,317 
Total loan commitments available for funding27,271,727 21,743,359 
Commercial and standby letters of credit (2)3,058,069 2,778,561 
Total unfunded credit commitments$30,329,796 $24,521,920 
Commitments unavailable for funding (3)$2,519,517 $3,051,075 
Allowance for unfunded credit commitments (4)101,515 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.
Commercial and Standby Letters of Credit
The table below summarizes our commercial and standby letters of credit at September 30, 2020. The maximum potential amount of future payments represents the amount that could be remitted under letters of credit if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or from the collateral held or pledged.
(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$2,838,280 $90,452 $2,928,732 $2,928,732 
Performance standby letters of credit109,224 18,057 127,281 127,281 
Commercial letters of credit2,056 — 2,056 2,056 
Total$2,949,560 $108,509 $3,058,069 $3,058,069 
Deferred fees related to financial and performance standby letters of credit were $16.5 million at September 30, 2020 and $17.2 million at December 31, 2019. At September 30, 2020, collateral in the form of cash of $1.7 billion was available to us to reimburse losses, if any, under financial and performance standby letters of credit.
Commitments to Invest in Venture Capital and Private Equity Funds
We make commitments to invest in venture capital and private equity funds, which generally make investments in privately-held companies. Commitments to invest in these funds are generally made for a 10-year period from the inception of the fund. Although the limited partnership agreements governing these investments typically do not restrict the general partners from calling 100% of committed capital in one year, it is customary for these funds to call most of the capital commitments over 5 to 7 years, and in certain cases, the funds may not call 100% of committed capital. The actual timing of future cash requirements to fund these commitments is generally dependent upon the investment cycle, overall market conditions, and the nature and type of industry in which the privately held companies operate. The following table details our total capital commitments, unfunded capital commitments, and our ownership percentage in each fund at September 30, 2020:
(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, LP12,688 — 20.0 
Growth Partners, LP24,670 1,340 33.0 
Strategic Investors Fund, LP15,300 688 12.6 
Strategic Investors Fund II, LP15,000 1,050 8.6 
Strategic Investors Fund III, LP15,000 1,275 5.9 
Strategic Investors Fund IV, LP12,239 2,325 5.0 
Strategic Investors Fund V funds515 131 Various
Other venture capital and private equity fund investments (equity method accounting)
25,197 6,258 Various
Debt funds (equity method accounting)58,733 240 Various
Other fund investments (2)278,339 5,614 Various
Total$464,881 $19,353 
(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 185 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 investments in “covered funds”. Under revised regulations that became effective on October 1, 2020, venture capital and credit funds that meet certain criteria will no longer be considered covered funds. We believe that, as a result of these changes, we will not be required to sell or otherwise conform certain of our fund investments. See the “Volcker Rule” section under Part I, Item 2 of this report for additional details.

The following table details the amounts of remaining unfunded commitments to venture capital and private equity funds by our consolidated managed funds of funds (including our interest and the noncontrolling interests) at September 30, 2020:
(Dollars in thousands)Unfunded Commitments    
Strategic Investors Fund, LP$376 
Capital Preferred Return Fund, LP1,517 
Growth Partners, LP2,513 
Total$4,406