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Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have four reportable segments for management reporting purposes: Global Commercial Bank, SVB Private Bank, SVB Capital and SVB Leerink. The results of our operating segments are based on our internal management reporting process.
Our Global Commercial Bank and SVB Private Bank segments primary source of revenue is from net interest income, which is primarily the difference between interest earned on loans, net of funds transfer pricing ("FTP") and interest paid on deposits, net of FTP. Accordingly, these segments are reported using net interest income, net of FTP. FTP is an internal measurement framework designed to assess the financial impact of a financial institution’s sources and uses of funds. It is the mechanism by which an earnings credit is given for deposits raised, and an earnings charge is made for funded loans. FTP is calculated at an instrument level based on account characteristics.
We also evaluate performance based on provision for credit losses, noninterest income and noninterest expense, which are presented as components of segment operating profit or loss. In calculating each operating segment’s noninterest expense, we consider the direct costs incurred by the operating segment as well as certain allocated direct costs. As part of this review, we allocate certain corporate overhead costs to a corporate account. We do not allocate income tax expense or the provision for unfunded credit commitments (included in provision for credit losses) to our segments. Additionally, our management reporting model is predicated on average asset balances; therefore, period-end asset balances are not presented for segment reporting purposes. Changes in an individual client’s primary relationship designation have resulted, and in the future may result, in the inclusion of certain clients in different segments in different periods.
Unlike financial reporting, which benefits from the comprehensive structure provided by GAAP, our internal management reporting process is highly subjective, as there is no comprehensive, authoritative guidance for management reporting. Our management reporting process measures the performance of our operating segments based on our internal operating structure, which is subject to change from time to time, and is not necessarily comparable with similar information for other financial services companies.
For reporting purposes, SVB Financial Group has four operating segments for which we report our financial information:
•Global Commercial Bank is comprised of results from the following:
◦Our Commercial Bank products and services are provided by the Bank and its subsidiaries to commercial clients in key innovation markets. The Bank provides solutions to the financial needs of commercial clients through credit, treasury management, foreign exchange, trade finance and other services. In addition, the Bank and its subsidiaries offer a variety of investment services and solutions to its clients that enable them to effectively manage their assets. 
◦Our Global Fund Banking (formerly Private Equity) Division provides banking products and services primarily to our private equity and venture capital clients.
◦SVB Wine provides banking products and services to our premium wine industry clients, including vineyard development loans. 
◦Debt Fund Investments is comprised of our investments in certain debt funds in which we are a strategic investor.
•SVB Private Bank is the private banking and wealth management division of the Bank and provides a broad array of personal financial solutions for its clients, which are primarily executive leaders and senior investment professionals in the innovation economy. We offer a customized approach to private wealth management and private banking services including residential real property lending, stock secured loans and other lending products alongside a full suite of cash management and deposit products and online/remote banking and service capabilities. In addition, we provide real estate secured loans to eligible employees through our EHOP.
•SVB Capital is the funds management business of SVB Financial Group, which focuses primarily on venture capital investments. SVB Capital manages funds (primarily venture capital funds) on behalf of third-party limited partners and, on a more limited basis, SVB Financial Group. The SVB Capital family of funds is comprised of direct venture funds that invest in companies and funds of funds that invest in other venture capital funds. SVB Capital generates income for the Company primarily from investment returns (including carried interest allocations) and management fees.
•SVB Leerink is an investment bank specializing in the equity and convertible capital markets, mergers and acquisitions, equity research and sales and trading for growth and innovation-minded healthcare and life science companies and operates as a wholly-owned subsidiary of SVB Financial. SVB Leerink provides investment banking services across all subsectors of healthcare including biotechnology, pharmaceuticals, medical devices, diagnostic and life science tools, healthcare services and digital health. SVB Leerink focuses on two primary lines of business: (i) investment banking focused on providing companies with capital-raising services, financial advice
on mergers and acquisitions, sales and trading services and equity research, and (ii) sponsorship of private investment funds.
The summary financial results of our operating segments are presented along with a reconciliation to our consolidated results.
Our segment information for 2020, 2019 and 2018 is as follows:
(Dollars in thousands)Global
Commercial
Bank (1)		SVB Private  
Bank		SVB Capital 
(1)  		SVB Leerink (1)Other Items
(2)		Total      
Year ended December 31, 2020
Net interest income$2,025,240 $77,490 $30 $578 $52,946 $2,156,284 
Provision for credit losses(165,987)(21,329)— — (32,194)(219,510)
Noninterest income605,733 3,536 225,954 495,976 508,949 1,840,148 
Noninterest expense (3)(1,019,995)(46,099)(50,589)(378,970)(539,388)(2,035,041)
Income (loss) before income tax expense (4)
$1,444,991 $13,598 $175,395 $117,584 $(9,687)$1,741,881 
Total average loans, amortized cost$31,218,037 $4,195,804 $— $— $1,852,135 $37,265,976 
Total average assets (5) (6)75,034,226 4,229,818 437,132 556,778 5,533,705 85,791,659 
Total average deposits72,127,148 2,171,556 — — 716,726 75,015,430 
Year ended December 31, 2019
Net interest income$1,850,391 $51,022 $38 $1,252 $193,898 $2,096,601 
Provision for credit losses(91,814)(2,369)— — (12,233)(106,416)
Noninterest income637,922 3,366 122,394 264,516 193,281 1,221,479 
Noninterest expense (3)(874,854)(40,151)(30,798)(252,678)(402,781)(1,601,262)
Income (loss) before income tax expense (4)
$1,521,645 $11,868 $91,634 $13,090 $(27,835)$1,610,402 
Total average loans, amortized cost$26,031,284 $3,341,188 $— $— $543,735 $29,916,207 
Total average assets (5) (6)56,043,321 3,371,052 405,152 397,650 2,994,455 63,211,630 
Total average deposits53,053,665 1,524,232 — — 479,053 55,056,950 
Year ended December 31, 2018
Net interest income$1,623,488 $64,902 $23 $— $205,575 $1,893,988 
Provision for credit losses(80,953)(3,339)— — (3,578)(87,870)
Noninterest income (7)520,302 2,281 101,181 — 121,220 744,984 
Noninterest expense (3)(793,159)(25,064)(22,792)— (347,178)(1,188,193)
Income (loss) before income tax expense (4)
$1,269,678 $38,780 $78,412 $— $(23,961)$1,362,909 
Total average loans, amortized cost$22,354,305 $2,850,271 $— $— $425,944 $25,630,520 
Total average assets (5) (8)48,854,416 2,871,743 380,543 — 3,122,358 55,229,060 
Total average deposits46,039,570 1,502,308 — — 533,466 48,075,344 
(1)Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. Noncontrolling interest is included within "Other Items."
(2)The "Other Items" column reflects the adjustments necessary to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Net interest income consists primarily of interest earned from our fixed income investment portfolio, net of FTP. Noninterest income consists primarily of gains or losses on equity warrant assets, gains or losses on the sale of AFS securities and gains or losses on equity securities from exercised warrant assets. Noninterest expense consists primarily of expenses associated with corporate support functions such as finance, human resources, marketing, legal and other expenses.
(3)The Global Commercial Bank segment includes direct depreciation and amortization of $25.3 million, $20.4 million and $21.8 million for 2020, 2019 and 2018, respectively.
(4)The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates.
(5)Total average assets equal the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for each segment to reconcile the results to the consolidated financial statements prepared in conformity with GAAP.
(6)Included in the total average assets for SVB Leerink is goodwill of $137.8 million for both the years ended December 31, 2020 and 2019.
(7)For the year ended December 31, 2018, amounts of client investment fees included in the line item "Noninterest Income" previously reported as "Other Items" have been correctly allocated to our 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 noninterest income.
(8)For the year ended December 31, 2018, amounts for average assets previously reported as "Other Items" have been correctly allocated to the reportable segments "Global Commercial Bank" and “SVB Private Bank” to properly reflect the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for “Global Commercial Bank” and “SVB Private Bank.” The correction of this immaterial error had no impact on the "Total" amount of average assets.