Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2021

Our segment information for the three months ended March 31, 2021 and 2020 is as follows:


(Dollars in thousands)	Global Commercial Bank (1)		SVB Private Bank		SVB Capital (1)		SVB Leerink (1)		Other Items (2)		Total
Three months ended March 31, 2021
Net interest income	$	618,609	$	27,025	$	2	$	166	$	13,777	$	659,579
(Provision for) reduction of credit losses	(44,503)		8,567		—		—		17,257		(18,679)
Noninterest income	158,671		998		68,594		170,967		344,950		744,180
Noninterest expense (3)	(277,763)		(12,958)		(15,233)		(136,352)		(193,695)		(636,001)
Income before income tax expense (4)	$	455,014	$	23,632	$	53,363	$	34,781	$	182,289	$	749,079
Total average loans, amortized cost	$	39,286,744	$	4,977,080	$	—	$	—	$	2,017,652	$	46,281,476
Total average assets (5) (6)	108,927,856		5,028,004		576,705		767,300		9,514,743		124,814,608
Total average deposits	106,267,572		3,292,673		—		—		1,048,169		110,608,414
Three months ended March 31, 2020
Net interest income	$	463,835	$	15,164	$	21	$	201	$	44,916	$	524,137
(Provision for) reduction of credit losses	(194,411)		(54,490)		—		—		5,421		(243,480)
Noninterest income	166,834		900		4,918		62,677		66,605		301,934
Noninterest expense (3)	(224,855)		(10,090)		(8,585)		(62,037)		(94,018)		(399,585)
Income (loss) before income tax expense (4)	$	211,403	$	(48,516)	$	(3,646)	$	841	$	22,924	$	183,006
Total average loans, amortized cost	$	29,137,484	$	3,857,478	$	—	$	—	$	665,766	$	33,660,728
Total average assets (5) (6)	61,813,129		3,892,400		447,201		483,648		5,770,790		72,407,168
Total average deposits	59,217,433		1,922,663		—		—		668,135		61,808,231

(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 $6.8 million and $5.5 million for the three months ended March 31, 2021 and 2020, 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 the three months ended March 31, 2021 and 2020.