Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2020

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 income	605,733		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 deposits	72,127,148		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 income	637,922		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 deposits	53,053,665		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 deposits	46,039,570		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.