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Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments
We serve a variety of commercial clients in the private equity/venture capital, technology, life science/healthcare, premium wine and commercial real estate industries. Loans made to private equity/venture capital firm clients typically enable them to fund investments prior to their receipt of funds from capital calls and are reported under the Global Fund Banking class of financing receivable below. Our technology clients generally tend to be in the industries of hardware (such as semiconductors, communications, data, storage and electronics), software/internet (such as infrastructure software, applications, software services, digital content and advertising technology) and climate technology and sustainability. Our life science/healthcare clients primarily tend to be in the industries of biopharma, healthtech, medical devices, healthcare services and diagnostics and tools. Loans to our technology and life science/healthcare clients are reported under the Investor Dependent, Cash Flow Dependent - SLBO and Innovation C&I classes of financing receivable below. We also make commercial and industrial loans, such as working capital lines and term loans for equipment and fixed assets, to clients that are not in the technology and life science/healthcare industries, which are reported in the Other C&I class of financing receivable below. Loans to the premium wine industry focus on vineyards and wineries that produce grapes and wines of high quality. Commercial real estate loans are generally acquisition financing for commercial properties such as office buildings, retail properties, apartment buildings and industrial/warehouse space. In addition to commercial loans, we make consumer loans through SVB Private Bank and provide real estate secured loans to eligible employees through our EHOP.
We also provide community development loans made as part of our responsibilities under the CRA. These loans are included within “construction loans” below and are primarily secured by real estate. Additionally, beginning in April 2020, we accepted applications under the PPP administered by the SBA under the CARES Act and originated loans to qualified small businesses. Disbursement of PPP funds under the CARES Act originally expired on August 8, 2020, however, on December 27, 2020, the Economic Aid Act was enacted, which extended the application period for PPP loans up to March 31, 2021, and allowed for certain PPP borrowers to apply for second draw loans. The disbursement phase of the PPP was further extended to June 30, 2021 pursuant to the PPP Extension Act of 2021.
Loan Portfolio Segments and Classes of Financing Receivables
Upon the completion of the acquisition of Boston Private on July 1, 2021, we modified our portfolio segments and classes of financing receivables to accommodate Boston Private loans. Refer to Note 2 — “Summary of Significant Accounting Policies” for additional information on our current portfolio segments and classes of financing receivables. For the periods presented prior to the acquisition in 2021, the following reclassifications have been made to conform to the current period presentation:
•Investor Dependent "Mid Stage" and "Later Stage" loans have been combined and presented as "Growth Stage."
•"Cash Flow Dependent - Other" and "Balance Sheet Dependent" loans have been combined and presented as "Innovation C&I."
Additionally, refer to Note 3 — “Business Combination” for information regarding the Boston Private acquisition.
The composition of loans at amortized cost basis broken out by class of financing receivable at December 31, 2021 and December 31, 2020, respectively, is presented in the following table:
December 31,
(Dollars in millions)20212020
Global fund banking$37,958 $25,543 
Investor dependent:
Early stage1,593 1,486 
Growth stage3,951 3,486 
Total investor dependent5,544 4,972 
Cash flow dependent - SLBO1,798 1,989 
Innovation C&I6,673 5,136 
Private bank (4)8,743 4,901 
CRE (4)2,670 — 
Premium wine (4)985 1,053 
Other C&I1,257 — 
Other (4)317 28 
PPP331 1,559 
Total loans (1) (2) (3)$66,276 $45,181 
ACL(422)(448)
Net loans$65,854 $44,733 
(1)Total loans at amortized cost is net of unearned income of $250 million and $226 million at December 31, 2021 and December 31, 2020, respectively.
(2)Included within our total loan portfolio are credit card loans of $583 million and $400 million at December 31, 2021 and December 31, 2020, respectively.
(3)Included within our total loan portfolio are construction loans of $367 million and $118 million at December 31, 2021 and December 31, 2020, respectively.
(4)Of our total loans, the table below includes those secured by real estate at amortized cost at December 31, 2021 and December 31, 2020 and were comprised of the following:
December 31,
(Dollars in millions)20212020
Real estate secured loans:
Private bank:
Loans for personal residence$6,939 $3,392 
Loans to eligible employees455 481 
Home equity lines of credit130 43 
Other135 143 
Total private bank loans secured by real estate$7,659 $4,059 
CRE:
Multifamily and residential investment$1,021 $— 
Retail524 — 
Office and medical499 — 
Manufacturing, industrial and warehouse336 — 
Hospitality142 — 
Other148 — 
Total CRE loans secured by real estate$2,670 $— 
Premium wine793 824 
Other334 57 
Total real estate secured loans$11,456 $4,940 
Credit Quality Indicators
For each individual client, we establish an internal credit risk rating for that loan, which is used for assessing and monitoring credit risk as well as performance of the loan and the overall portfolio. Our internal credit risk ratings are also used to summarize the risk of loss due to failure by an individual borrower to repay the loan. For our internal credit risk ratings, each individual loan is given a risk rating of 1 through 10. Loans risk-rated 1 through 4 are performing loans and translate to an internal rating of “Pass,” with loans risk-rated 1 being cash secured. Loans risk-rated 5 through 7 are performing loans; however, we consider them as demonstrating higher risk, which requires more frequent review of the individual exposures; these translate to an internal rating of “Criticized.” All of our nonaccrual loans are risk-rated 8 or 9 and are classified under the nonperforming category. Loans rated 10 are charged-off and are not included as part of our loan portfolio balance. We review our credit quality indicators on a quarterly basis for performance and appropriateness of risk ratings as part of our evaluation process for our ACL for loans.
The following tables summarize the credit quality indicators, broken out by class of financing receivables and vintage year, as of December 31, 2021 and December 31, 2020.
Term Loans by Origination Year
December 31, 2021 (Dollars in millions)20212020201920182017PriorRevolving LoansRevolving Loans Converted to Term LoansUnallocated (1)Total
Global fund banking:
Risk rating:
Pass $764 $115 $36 $6 $8 $4 $36,955 $— $— $37,888 
Criticized50 18 — — — 1 1 — — 70 
Nonperforming— — — — — — — — — — 
Total global fund banking$814 $133 $36 $6 $8 $5 $36,956 $— $— $37,958 
Investor dependent:
Early stage:
Risk rating:
Pass $754 $287 $122 $26 $6 $1 $171 $— $— $1,367 
Criticized64 87 30 5 — — 29 — — 215 
Nonperforming2 5 3 — — — 1 — — 11 
Total early stage$820 $379 $155 $31 $6 $1 $201 $— $— $1,593 
Growth stage:
Risk rating:
Pass $2,072 $910 $265 $78 $14 $1 $286 $5 $— $3,631 
Criticized159 85 27 6 3 — 34 — — 314 
Nonperforming2 — 1 2 — — 1 — — 6 
Total growth stage$2,233 $995 $293 $86 $17 $1 $321 $5 $— $3,951 
Total investor dependent$3,053 $1,374 $448 $117 $23 $2 $522 $5 $— $5,544 
Cash flow dependent - SLBO:
Risk rating:
Pass $875 $384 $252 $72 $76 $2 $35 $— $— $1,696 
Criticized— — 20 25 — 13 10 — — 68 
Nonperforming— — 12 10 7 — 5 — — 34 
Total cash flow dependent - SLBO$875 $384 $284 $107 $83 $15 $50 $— $— $1,798 
Innovation C&I:
Risk rating:
Pass $2,230 $1,058 $288 $123 $58 $— $2,411 $— $— $6,168 
Criticized64 130 62 12 — — 236 — — 504 
Nonperforming— — — — — — 1 — — 1 
Total Innovation C&I$2,294 $1,188 $350 $135 $58 $— $2,648 $— $— $6,673 
Private bank:
Risk rating:
Pass $2,952 $2,015 $1,122 $520 $432 $952 $705 $8 $— $8,706 
Criticized— — 2 — 2 9 3 — — 16 
Nonperforming— — 2 9 — 8 2 — — 21 
Total private bank$2,952 $2,015 $1,126 $529 $434 $969 $710 $8 $— $8,743 
CRE
Risk rating:
Pass$326 $215 $344 $155 $236 $868 $110 $2 $— $2,256 
Criticized3 39 114 37 47 139 18 12 — 409 
Nonperforming— — 5 — — — — — — 5 
Total CRE$329 $254 $463 $192 $283 $1,007 $128 $14 $— $2,670 
Premium wine:
Risk rating:
Pass $217 $112 $156 $69 $71 $162 $125 $34 $— $946 
Criticized1 7 11 9 — — 11 — — 39 
Nonperforming— — — — — — — — — — 
Total Premium wine$218 $119 $167 $78 $71 $162 $136 $34 $— $985 
Other C&I
Risk rating:
Pass$181 $175 $82 $86 $28 $301 $350 $11 $— $1,214 
Criticized5 6 6 7 2 — 8 5 — 39 
Nonperforming— — — 2 — 1 1 — — 4 
Total other C&I$186 $181 $88 $95 $30 $302 $359 $16 $— $1,257 
Other:
Risk rating:
Pass $61 $144 $82 $20 $14 $— $7 $— $(21)$307 
Criticized— 7 1 — 2 — — — — 10 
Nonperforming— — — — — — — — — — 
Total other$61 $151 $83 $20 $16 $— $7 $— $(21)$317 
PPP:
Risk rating:
Pass $226 $72 $— $— $— $— $— $— $— $298 
Criticized22 9 — — — — — — — 31 
Nonperforming2 — — — — — — — — 2 
Total PPP$250 $81 $— $— $— $— $— $— $— $331 
Total loans$11,032 $5,880 $3,045 $1,279 $1,006 $2,462 $41,516 $77 $(21)$66,276 
(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 Innovation C&I$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 
Allowance for Credit Losses: Loans
For the year ending December 31, 2021, the ACL for loans decreased by $26 million, driven primarily by net charge-offs, improved economic conditions within our forecasted assumptions and enhancements made to our allowance model, which were partially offset by growth in our loan portfolio, both from the acquisition of Boston Private and organic growth.
The Moody's Analytics December 2021 forecast was utilized in our quantitative model for the ACL as of December 31, 2021 for both SVB and Boston Private loans. The forecast assumptions included an improvement in the unemployment rate and a strong forecasted gross domestic product growth rate, both of which were a result of ongoing economic stabilization as the pandemic's impact begins to subside. We determined the forecast to be a reasonable view of the outlook for the economy given the available information at current year end. To the extent we identified credit risk considerations that were not captured by the Moody's Analytics December 2021 forecast, we addressed the risk through management's qualitative adjustments to our ACL.
The enhancements made to our reserving model were made in normal course, with the primary enhancements being the addition of two years of portfolio data, more granular prepayment models and the re-selection of macroeconomic variables.
The following tables summarize the activity relating to our ACL for loans for 2021, 2020 and 2019 broken out by portfolio segment:
Year ended December 31, 2021 Beginning Balance December 31, 2020Initial Allowance on PCD LoansCharge-offsRecoveriesProvision (Reduction) for Loans (1)Ending Balance December 31, 2021
(Dollars in millions)
Global fund banking (2)$46 $— $(80)$— $101 $67 
Investor dependent213 — (46)18 (39)146 
Cash flow dependent and Innovation C&I125 — (8)6 (5)118 
Private bank53 1 (3)— (18)33 
CRE— 17 — — 19 36 
Other C&I— 4 — — 10 14 
Premium wine and other9 — (1)— — 8 
PPP2 — — — (2)— 
Total ACL$448 $22 $(138)$24 $66 $422 
(1)The provision for loans for the year ended December 31, 2021 includes a post-combination initial provision of $44 million related to non-PCD loans from the Boston Private acquisition.
(2)Global fund banking activity for the year ended December 31, 2021 includes the impact of an $80 million charge-off related to fraudulent activity on one loan as disclosed in previous filings.

Year ended December 31, 2020Beginning Balance December 31, 2019Impact of Adopting ASC 326Charge-offsRecoveriesProvision (Reduction) for LoansForeign Currency Translation AdjustmentsEnding Balance December 31, 2020
(Dollars in millions)
Global fund banking$107 $(70)$— $— $9 $— $46 
Investor dependent82 72 (89)25 125 (2)213 
Cash flow dependent and Innovation C&I81 (1)(11)3 53 — 125 
Private bank22 12 (2)— 21 — 53 
Premium wine and other13 12 (1)1 (21)5 9 
PPP— — — — 2 — 2 
Total ACL$305 $25 $(103)$29 $189 $3 $448 
Year ended December 31, 2019Beginning Balance at December 31, 2018Charge-offsRecoveriesProvision (Reduction) for LoansForeign Currency Translation AdjustmentsEnding Balance at December 31, 2019
(Dollars in millions)
Global fund banking$94 $(2)$2 $13 $— $107 
Total investor dependent72 (85)14 81 — 82 
Cash flow dependent and Innovation C&I88 (3)5 (9)— 81 
Private bank21 (1)— 2 — 22 
Premium wine and other7 (2)— 7 1 13 
Total ACL$282 $(93)$21 $94 $1 $305 

The following table summarizes the aging of our loans broken out by class of financing receivables as of December 31, 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
December 31, 2021:
Global fund banking$— $— $— $— $37,958 $37,958 $— 
Investor dependent:
Early stage6 5 — 11 1,582 1,593 — 
Growth stage16 — — 16 3,935 3,951 — 
Total investor dependent22 5 — 27 5,517 5,544 — 
Cash flow dependent - SLBO— — — — 1,798 1,798 — 
Innovation C&I7 — 7 14 6,659 6,673 7 
Private bank28 1 12 41 8,702 8,743 — 
CRE1 — — 1 2,669 2,670 — 
Premium wine3 — — 3 982 985 — 
Other C&I1 2 1 4 1,253 1,257 — 
Other— — — — 317 317 — 
PPP1 — — 1 330 331 — 
Total loans (1)$63 $8 $20 $91 $66,185 $66,276 $7 
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 $— 
Nonaccrual Loans
The following table summarizes our nonaccrual loans with no ACL at December 31, 2021 and 2020:
December 31, 2021December 31, 2020
(Dollars in millions)Nonaccrual LoansNonaccrual Loans with no ACLNonaccrual Loans Nonaccrual Loans with no ACL
Investor dependent:
Early stage$11 $— $18 $— 
Growth stage6 — 33 3 
Total investor dependent17 — 51 3 
Cash flow dependent - SLBO34 — 40 — 
Innovation C&I1 1 6 1 
Private bank21 8 6 3 
CRE5 — — — 
Premium wine— — 1 1 
Other C&I4 — — — 
PPP2 — — — 
Total nonaccrual loans (1)$84 $9 $104 $8 
(1)Nonaccrual loans at December 31, 2021 include $20 million of loans that were acquired from Boston Private.

Troubled Debt Restructurings
As of December 31, 2021, we had 62 TDRs with a total carrying value of $96 million where concessions have been granted to borrowers experiencing financial difficulties in an attempt to maximize collection. There were no unfunded commitments available for funding to the clients associated with these TDRs as of December 31, 2021.
The following table summarizes our loans modified in TDRs, broken out by class of financing receivables, at December 31, 2021 and 2020:
(Dollars in millions)December 31, 2021December 31, 2020
Loans modified in TDRs:
Investor dependent:
Early stage$12 $7 
Growth stage329 
Total investor dependent1536 
Cash flow dependent - SLBO3422 
Innovation C&I— 1 
Private bank12— 
CRE33— 
Premium wine— 2 
Other C&I2— 
Total loans modified in TDRs during the period (1)$96 $61 
(1)Loans modified in TDRs at December 31, 2021 include 51 loans with a total balance of $47 million that were acquired from Boston Private.
The following table summarizes the recorded investment in loans modified in TDRs, broken out by class of financing receivables, for modifications made during 2021, 2020 and 2019:
 Year ended December 31,
(Dollars in millions)202120202019
Loans modified in TDRs during the period:
Investor dependent:
Early stage$12 $6 $9 
Growth stage— 26 20 
Total investor dependent12 32 29 
Cash flow dependent - SLBO12 22 48 
Innovation C&I— 1 — 
Private bank4 — 2 
CRE29 — — 
Premium wine— 1 11 
Total loans modified in TDRs during the period (1) (2) (3)$57 $56 $90 
(1)For the years ended December 31, 2021 and December 31, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Loan amounts for the year ended December 31, 2019, are disclosed using the gross basis in accordance with the previous methodology.
(2)Loans modified in TDRs during 2021 include $33 million of loans acquired from Boston Private that were modified in TDRs.
(3)There were $6 million, $31 million and $11 million of partial charge-offs during 2021, 2020 and 2019, respectively.
During 2021, $31 million of new TDRs were modified through payment deferrals granted to our clients, $2 million were modified through interest rate reductions, $2 million were modified through settlements, and $22 million were modified through a combination of the above. During 2020, $55 million of new TDRs were modified through payment deferrals and $1 million were modified through partial forgiveness of principal. During 2019, new TDRs of $87 million were modified through payment deferrals and $3 million were modified through partial forgiveness of principal.
The following table summarizes the recorded investment in loans modified in TDRs within the previous 12 months that subsequently defaulted during 2021, 2020 and 2019:
 Year ended December 31,
(Dollars in millions)202120202019
TDRs modified within the previous 12 months that defaulted during the period:
Investor dependent
Growth stage$— $— $11 
Total investor dependent— — 11 
Cash flow dependent - SLBO— — 37 
Premium wine— 1 — 
Total TDRs modified within the previous 12 months that defaulted in the period (1)$— $1 $48 
(1)For the years ended December 31, 2021 and December 31, 2020, loan amounts are disclosed using the amortized cost basis as a result of the adoption of CECL. Loan amounts for the year ended December 31, 2019, are disclosed using the gross basis in accordance with the previous methodology.

Charge-offs and defaults on previously restructured loans are evaluated to determine the impact to the ACL for loans, if any. The evaluation of these defaults may impact the assumptions used in calculating the reserve on other TDRs and nonaccrual loans as well as management’s overall outlook of macroeconomic factors that affect the reserve on the loan portfolio as a whole. After evaluating the charge-offs and defaults experienced on our TDRs we determined that no change to our reserving methodology for TDRs was necessary to determine the ACL for loans as of December 31, 2021.
Allowance for Credit Losses: Unfunded Credit Commitments
We maintain a separate ACL for unfunded credit commitments that is determined using a methodology that is inherently similar to the methodology used for calculating the ACL for loans. At December 31, 2021, our ACL estimates utilized the Moody's economic forecasts from December 2021 as described above. The ACL for unfunded commitments increased by $50 million from the prior year, driven primarily by growth in our outstanding commitments and compositional changes in our portfolio.
The following table summarizes the activity relating to our ACL for unfunded credit commitments for 2021, 2020 and 2019:
 December 31,
(Dollars in millions)202120202019
ACL: unfunded credit commitments, beginning balance$121 $68 $55 
Impact of adopting ASC 326— 23 — 
Provision for credit losses (1)50 30 13 
ACL: unfunded credit commitments, ending balance (2)$171 $121 $68 
(1)The provision for credit losses for unfunded credit commitments for 2021 includes a post-combination initial 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 consolidated balance sheets. See Note 21—“Off-Balance Sheet Arrangements, Guarantees and Other Commitments” for additional disclosures related to our commitments to extend credit.