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Loans, Allowance for Loan Losses and Allowance for Unfunded Credit Commitments (Tables)
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Loans and Allowance for Loan Losses
The composition of loans at amortized cost basis broken out by class of financing receivable at September 30, 2021 and December 31, 2020 is presented in the following table:
(Dollars in millions)September 30, 2021December 31, 2020
Global fund banking$34,120 $25,543 
Investor dependent:
Early stage1,550 1,486 
Growth stage3,827 3,486 
Total investor dependent5,377 4,972 
Cash flow dependent - SLBO1,895 1,989 
Innovation C&I5,916 5,136 
Private bank (4)8,370 4,901 
CRE (4)2,753 — 
Premium wine (4)980 1,053 
Other C&I1,259 — 
Other (4)252 28 
PPP565 1,559 
Total loans (1) (2) (3)$61,487 $45,181 
ACL(398)(448)
Net loans$61,089 $44,733 
(1)    Total loans at amortized cost is net of unearned income of $240 million and $226 million at September 30, 2021 and December 31, 2020, respectively.
(2)     Included within our total loan portfolio are credit card loans of $548 million and $400 million at September 30, 2021 and December 31, 2020, respectively.
(3)     Included within our total loan portfolio are construction loans of $320 million and $118 million at September 30, 2021 and December 31, 2020, respectively.
(4)     Of our total loans, the table below includes those secured by real estate at amortized cost at September 30, 2021 and December 31, 2020 and were comprised of the following:
(Dollars in millions)September 30, 2021December 31, 2020
Real estate secured loans:
Private bank:
Loans for personal residence$6,684 $3,392 
Loans to eligible employees449 481 
Home equity lines of credit131 43 
Other136 143 
Total private bank loans secured by real estate$7,400 $4,059 
CRE:
Multifamily and residential investment1,047 — 
Retail564 — 
Office and medical540 — 
Manufacturing, industrial and warehouse309 — 
Hospitality155 — 
Other138 — 
Total CRE loans secured by real estate$2,753 $— 
Premium wine795 824 
Other281 57 
Total real estate secured loans$11,229 $4,940 
Credit Quality Indicators, Broken out by Portfolio Segment and Class of Financing Receivables
The following tables summarize the credit quality indicators, broken out by class of financing receivable and vintage year, as of September 30, 2021 and December 31, 2020:

Term Loans by Origination Year
September 30, 2021 (Dollars in millions)20212020201920182017PriorRevolving LoansRevolving Loans Converted to Term LoansUnallocated (1)Total
Global fund banking:
Risk rating:
Pass $470 $111 $40 $54 $12 $6 $33,423 $— $— $34,116 
Criticized— — — — — — 3 1 — 4 
Nonperforming— — — — — — — — — — 
Total global fund banking$470 $111 $40 $54 $12 $6 $33,426 $1 $— $34,120 
Investor dependent:
Early stage:
Risk rating:
Pass $605 $386 $174 $35 $8 $1 $149 $— $— $1,358 
Criticized26 99 31 5 1 — 26 — — 188 
Nonperforming— — 3 1 — — — — — 4 
Total early stage$631 $485 $208 $41 $9 $1 $175 $— $— $1,550 
Growth stage:
Risk rating:
Pass $1,609 $1,120 $369 $113 $22 $2 $316 $5 $— $3,556 
Criticized80 84 51 4 1 — 25 — — 245 
Nonperforming— 14 1 3 — — 8 — — 26 
Total growth stage$1,689 $1,218 $421 $120 $23 $2 $349 $5 $— $3,827 
Total investor dependent$2,320 $1,703 $629 $161 $32 $3 $524 $5 $— $5,377 
Cash flow dependent - SLBO:
Risk rating:
Pass $780 $489 $280 $94 $85 $— $34 $— $— $1,762 
Criticized2 14 18 39 10 13 3 — — 99 
Nonperforming— — 12 10 7 — 5 — — 34 
Total cash flow dependent - SLBO$782 $503 $310 $143 $102 $13 $42 $— $— $1,895 
Innovation C&I
Risk rating:
Pass $1,426 $1,298 $334 $260 $131 $3 $1,983 $— $— $5,435 
Criticized35 112 73 17 — — 244 — — 481 
Nonperforming— — — — — — — — — — 
Total innovation C&I$1,461 $1,410 $407 $277 $131 $3 $2,227 $— $— $5,916 
Private bank:
Risk rating:
Pass $2,163 $2,159 $1,259 $566 $496 $1,053 $625 $10 $— $8,331 
Criticized— — 6 2 4 13 3 — — 28 
Nonperforming— — — 1 — 9 — 1 — 11 
Total private bank$2,163 $2,159 $1,265 $569 $500 $1,075 $628 $11 $— $8,370 
CRE
Risk rating:
Pass $256 $249 $359 $160 $263 $927 $120 $15 $— $2,349 
Criticized3 29 109 50 50 125 19 — — 385 
Nonperforming— — 5 14 — — — — — 19 
Total CRE$259 $278 $473 $224 $313 $1,052 $139 $15 $— $2,753 
Premium wine:
Risk rating:
Pass $129 $131 $182 $68 $66 $148 $114 $34 $— $872 
Criticized2 12 11 16 — 38 12 — — 91 
Nonperforming— — 7 — 10 — — — — 17 
Total premium wine$131 $143 $200 $84 $76 $186 $126 $34 $— $980 
Other C&I
Risk rating:
Pass $159 $179 $96 $93 $33 $310 $324 $10 $— $1,204 
Criticized5410922155— 52 
Nonperforming— — — 1 — 1 1 — — 3 
Total other C&I$164 $183 $106 $103 $35 $313 $340 $15 $— $1,259 
Other:
Risk rating:
Pass $25 $114 $97 $21 $13 $— $4 $— $(29)$245 
Criticized— — 1 3 3 — — — — 7 
Nonperforming— — — — — — — — — — 
Total other$25 $114 $98 $24 $16 $— $4 $— $(29)$252 
PPP:
Risk rating:
Pass $387 $120 $— $— $— $— $— $— $— $507 
Criticized27 31 — — — — — — — 58 
Nonperforming— — — — — — — — — — 
Total PPP$414 $151 $— $— $— $— $— $— $— $565 
Total loans$8,189 $6,755 $3,528 $1,639 $1,217 $2,651 $37,456 $81 $(29)$61,487 
(1)    These amounts consist of fees and clearing items that have not yet been allocated at the loan level.


Term Loans by Origination Year
December 31, 2020 (Dollars in millions)20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Global fund banking:
Risk rating:
Pass $440 $48 $69 $23 $2 $6 $24,947 $2 $25,537 
Criticized—————— — 6 6 
Nonperforming—————— — — — 
Total global fund banking$440 $48 $69 $23 $2 $6 $24,947 $8 $25,543 
Investor dependent:
Early stage:
Risk rating:
Pass $667 $370 $121 $32 $1 $1 $96 $1 $1,289 
Criticized47 73 26 10 4 — 19 — 179 
Nonperforming2 9 5 1 — — 1 — 18 
Total early stage$716 $452 $152 $43 $5 $1 $116 $1 $1,486 
Growth stage:
Risk rating:
Pass $1,746 $696 $316 $61 $5 $9 $325 $8 $3,166 
Criticized65 103 56 9 — 7 47 — 287 
Nonperforming17 3 4 3 — — 6 — 33 
Total growth stage$1,828 $802 $376 $73 $5 $16 $378 $8 $3,486 
Total investor dependent$2,544 $1,254 $528 $116 $10 $17 $494 $9 $4,972 
Cash flow dependent - SLBO:
Risk rating:
Pass $791 $452 $274 $167 $37 $— $75 $— $1,796 
Criticized— 70 39 22 13 — 9 — 153 
Nonperforming— 12 16 7 — — 5 — 40 
Total cash flow dependent - SLBO$791 $534 $329 $196 $50 $— $89 $— $1,989 
Innovation C&I:
Risk rating:
Pass $1,718 $703 $378 $152 $39 $— $1,791 $1 $4,782 
Criticized75 72 34 4 — — 163 — 348 
Nonperforming— — 5 — — — 1 — 6 
Total sponsor led buyout$1,793 $775 $417 $156 $39 $— $1,955 $1 $5,136 
Private bank:
Risk rating:
Pass $1,878 $1,153 $394 $353 $295 $406 $382 $1 $4,862 
Criticized3 10 5 1 5 8 1 — 33 
Nonperforming— — 3 — — 2 1 — 6 
Total private bank$1,881 $1,163 $402 $354 $300 $416 $384 $1 $4,901 
Premium wine:
Risk rating:
Pass $127 $194 $71 $79 $115 $154 $135 $36 $911 
Criticized18 24 36 10 13 6 34 — 141 
Nonperforming— — — — 1 — — — 1 
Total Premium wine$145 $218 $107 $89 $129 $160 $169 $36 $1,053 
Other:
Risk rating:
Pass $— $16 $11 $— $— $1 $— $— $28 
Criticized— — — — — — — — — 
Nonperforming— — — — — — — — — 
Total other$— $16 $11 $— $— $1 $— $— $28 
PPP:
Risk rating:
Pass $1,456 $— $— $— $— $— $— $— $1,456 
Criticized103 — — — — — — — 103 
Nonperforming— — — — — — — — — 
Total PPP$1,559 $— $— $— $— $— $— $— $1,559 
Total loans$9,153 $4,008 $1,863 $934 $530 $600 $28,038 $55 $45,181 
Activity in Allowance for Loan Losses Broken out by Portfolio Segment
The following tables summarize the activity relating to our ACL for loans for the three and nine months ended September 30, 2021 and 2020, broken out by portfolio segment:
Three months ended September 30, 2021Beginning Balance June 30, 2021Initial Allowance on PCD LoansCharge-offsRecoveries(Reduction) Provision for Credit Losses (1)Ending Balance September 30, 2021
(Dollars in millions)
Global fund banking$66 $— $— $— $(7)$59 
Investor dependent158 — (17)5 (8)138 
Cash flow dependent and innovation C&I119 — (1)3 (12)109 
Private bank47 1 (1)— (16)31 
CRE— 17 — — 23 40 
Other C&I— 4 — — 8 12 
Premium wine and other6 — — — 3 9 
Total ACL$396 $22 $(19)$8 $(9)$398 
(1)    The provision for loan losses for the three months ended September 30, 2021 includes a post-combination provision of $44 million related to non-PCD loans from the Boston Private acquisition.
Three months ended September 30, 2020Beginning Balance June 30, 2020Charge-offsRecoveries(Reduction) Provision for Credit LossesForeign Currency Translation AdjustmentsEnding Balance September 30, 2020
(Dollars in millions)
Global fund banking$54 $— $— $(15)$— $39 
Investor dependent292 (28)4 (5)— 263 
Cash flow dependent and innovation C&I123 — — (2)— 121 
Private Bank91 — — (15)— 76 
Premium wine and other26 — — (16)1 11 
PPP4 — — (1)— 3 
Total ACL$590 $(28)$4 $(54)$1 $513 
Nine months ended September 30, 2021Beginning Balance December 31, 2020Initial Allowance on PCD LoansCharge-offsRecoveriesProvision (Reduction) for Credit Losses (1)Ending Balance September 30, 2021
(Dollars in millions)
Global fund banking$46 $— $(80)$— $93 $59 
Investor dependent213 — (37)13 (51)138 
Cash flow dependent and innovation C&I125 — (8)3 (11)109 
Private bank53 1 (3)— (20)31 
CRE— 17 — — 23 40 
Other C&I— 4 — — 8 12 
Premium wine and other9 — (1)— 1 9 
PPP2 — — — (2)— 
Total ACL$448 $22 $(129)$16 $41 $398 
(1)    The provision for loan losses for the nine months ended September 30, 2021 includes a post-combination provision of $44 million related to non-PCD loans from the Boston Private acquisition.


Nine months ended September 30, 2020Beginning Balance December 31, 2019Impact of Adopting ASC 326Charge-offsRecoveriesProvision (Reduction) for Credit LossesForeign Currency Translation AdjustmentsEnding Balance September 30, 2020
(Dollars in millions)
Global fund banking$107 $(70)$— $— $2 $— $39 
Investor dependent82 72 (67)12 165 (1)263 
Cash flow dependent and innovation C&I81 (1)(11)3 50 (1)121 
Private bank22 12 (2)— 44 — 76 
Premium wine and other13 12 — 1 (17)2 11 
PPP— — — — 3 — 3 
Total ACL$305 $25 $(80)$16 $247 $— $513 
The following table summarizes the activity relating to our ACL for unfunded credit commitments for the three and nine months ended September 30, 2021 and 2020:
 Three months ended September 30, Nine months ended September 30,
(Dollars in millions)2021202020212020
ACL: unfunded credit commitments, beginning balance$120 $99 $121 $67 
Impact of adopting ASC 326— — — 23 
Provision for credit losses (1)29 2 28 11 
ACL: unfunded credit commitments, ending balance (2)$149 $101 $149 $101 
(1)The provision for credit losses for unfunded credit commitments for the three and nine months ended September 30, 2021 includes a post-combination provision of $2 million related to commitments acquired from Boston Private.
(2)The “ACL: unfunded credit commitments” is included as a component of “other liabilities” on our unaudited interim consolidated balance sheets. See Note 12 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of this report for additional disclosures related to our commitments to extend credit.
Financing Receivable, Past Due
The following table summarizes the aging of our loans broken out by class of financing receivable as of September 30, 2021 and December 31, 2020:
(Dollars in millions)30 - 59
  Days Past  
Due		60 - 89
  Days Past  
Due		Equal to or Greater
Than 90
  Days Past  
Due		  Total Past  
Due		Current  Total   Loans Past Due
90 Days or
More Still
Accruing
Interest
September 30, 2021:
Global fund banking$— $— $— $— $34,120 $34,120 $— 
Investor dependent:
Early stage1 — — 1 1,549 1,550 — 
Growth stage2 — — 2 3,825 3,827 — 
Total investor dependent3 — — 3 5,374 5,377 — 
Cash flow dependent - SLBO— — — — 1,895 1,895 — 
Innovation C&I1 3 — 4 5,912 5,916 — 
Private bank1 2 8 11 8,359 8,370 2 
CRE14 — — 14 2,739 2,753 — 
Premium wine— — 17 17 963 980 — 
Other C&I3 1 1 5 1,254 1,259 — 
Other— — — — 252 252 — 
PPP— — 1 1 564 565 1 
Total loans$22 $6 $27 $55 $61,432 $61,487 $3 
December 31, 2020:
Global fund banking$28 $— $— $28 $25,515 $25,543 $— 
Investor dependent:
Early stage6 2 — 8 1,478 1,486 — 
Growth stage11 — 1 12 3,474 3,486 — 
Total investor dependent17 2 1 20 4,952 4,972 — 
Cash flow dependent - SLBO— — — — 1,989 1,989 — 
Innovation C&I7 1 — 8 5,128 5,136 — 
Private bank4 4 — 8 4,893 4,901 — 
Premium wine3 — 1 4 1,049 1,053 — 
Other— — — — 28 28 — 
PPP— — — — 1,559 1,559 — 
Total loans$59 $7 $2 $68 $45,113 $45,181 $— 
Financing Receivable, Nonaccrual
The following table summarizes our nonaccrual loans with no allowance for credit loss at September 30, 2021 and December 31, 2020:
September 30, 2021December 31, 2020
(Dollars in millions)Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossNonaccrual Loans Nonaccrual Loans with no Allowance for Credit Loss
Investor dependent:
Early stage$4 $— $18 $— 
Growth stage26 — 33 3 
Total investor dependent30 — 51 3 
Cash flow dependent - SLBO34 — 40 — 
Innovation C&I— — 6 1 
Private bank11 2 6 3 
CRE19 — — — 
Premium wine17 17 1 1 
Other C&I3 — — — 
Total nonaccrual loans (1)$114 $19 $104 $8 
(1)    Nonaccrual loans at September 30, 2021 include $31 million of loans that were acquired from Boston Private.
Summary of Loans Modified in Troubled Debt Restructurings ("TDRs") by Risk-based Segment
The following table summarizes our loans modified in TDRs, broken out by class of financing receivable at September 30, 2021 and December 31, 2020:
(Dollars in millions)September 30, 2021December 31, 2020
Loans modified in TDRs:
Investor dependent:
Early stage$— $7 
Growth stage26 29 
Total investor dependent26 36 
Cash flow dependent - SLBO34 22 
Innovation C&I— 1 
Private bank10 — 
CRE48 — 
Premium wine2 2 
Other C&I2 — 
Total loans modified in TDRs (1)$122 $61 
(1)    Loans modified in TDRs at September 30, 2021 include 48 loans with a total balance of $60 million that were acquired from Boston Private.
Recorded Investment in Loans Modified in TDRs
The following table summarizes the recorded investment in loans modified in TDRs, broken out by class of financing receivable, for modifications made during the three and nine months ended September 30, 2021 and 2020:
 Three months ended September 30, Nine months ended September 30,
(Dollars in millions)2021202020212020
Loans modified in TDRs during the period:
Investor dependent:
Early stage$— $4 $1 $4 
Growth stage8 — 8 4 
Total investor dependent8 4 9 8 
Cash flow dependent - SLBO— 21 12 21 
Innovation C&I— 1 — 2 
Private bank2 — 2 — 
CRE43 — 43 — 
Premium wine— — — 1 
Total loans modified in TDRs during the period (1) (2)$53 $26 $66 $32 
(1)There were no partial charge-offs for the three months ended September 30, 2021 and $7 million for the nine months then ended, compared to $14 million and $31 million of partial charge-offs for the three and nine months ended September 30, 2020, respectively.
(2)Loans modified in TDRs during the three and nine months ended September 30, 2021 include $45 million of loans acquired from Boston Private that were subsequently modified in TDRs.
Troubled Debt Restructurings On Financing Receivables Subsequently Defaulted Table
The following table summarizes the recorded investment in loans modified in TDRs within the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2021 and September 30, 2020:
 Three months ended September 30, Nine months ended September 30,
(Dollars in millions)2021202020212020
TDRs modified within the previous 12 months that defaulted during the period:
Premium wine$— $1 $— $1 
Total TDRs modified within the previous 12 months that defaulted in the period$— $1 $— $1