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Off-Balance Sheet Arrangements, Guarantees and Other Commitments
 3 Months Ended
Mar. 31, 2022
Disclosure Off Balance Sheet Arrangements Guarantees And Other Commitments Additional Information [Abstract]  
Off-Balance Sheet Arrangements, Guarantees and Other Commitments Off-Balance Sheet Arrangements, Guarantees and Other Commitments
In the normal course of business, we use financial instruments with off-balance sheet risk to meet the financing needs of our customers. These financial instruments include commitments to extend credit, commercial and standby letters of credit and commitments to invest in venture capital and private equity fund investments. These instruments involve, to varying degrees, elements of credit risk. Credit risk is defined as the possibility of sustaining a loss because other parties to the financial instrument fail to perform in accordance with the terms of the contract.
Commitments to Extend Credit
The following table summarizes information related to our commitments to extend credit at March 31, 2022 and December 31, 2021:
(Dollars in millions)March 31, 2022December 31, 2021
Loan commitments (1)$40,737 $40,327 
Standby letters of credit (2)3,843 3,612 
Commercial letters of credit (3)105 77 
Total unfunded credit commitments$44,685 $44,016 
Allowance for unfunded credit commitments (4)175 171 
(1)Represents commitments which are available for funding, due to clients meeting all collateral, compliance and financial covenants required under loan commitment agreements.
(2)See below for additional information on our commercial and standby letters of credit.
(3)Commercial letters of credit are issued primarily for inventory purchases by a client and are typically short-term in nature.
(4)Our allowance for credit losses for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit.
Standby Letters of Credit
The table below summarizes our standby letters of credit at March 31, 2022. The maximum potential amount of future payments represents the amount that could be remitted under letters of credit if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or from the collateral held or pledged.
(Dollars in millions)Expires in One
Year or Less		Expires After
One Year		Total Amount
Outstanding		Maximum Amount
of Future Payments
Financial standby letters of credit$3,621 $140 $3,761 $3,761 
Performance standby letters of credit74 8 82 82 
Total$3,695 $148 $3,843 $3,843 
Deferred fees related to financial and performance standby letters of credit were $18 million at March 31, 2022 and $20 million at December 31, 2021.
Commitments to Invest in Venture Capital and Private Equity Funds
We make commitments to invest in venture capital and private equity funds, which generally make investments in privately-held companies. Commitments to invest in these funds are generally made for a 10-year period from the inception of the fund. Although the limited partnership agreements governing these investments typically do not restrict the general partners from calling 100% of committed capital in one year, it is customary for these funds to call most of the capital commitments over 5 to 7 years, and in certain cases, the funds may not call 100% of committed capital. The actual timing of future cash requirements to fund these commitments is generally dependent upon the investment cycle, overall market conditions, and the nature and type of industry in which the privately held companies operate. The following table details our total capital commitments, unfunded capital commitments, and our ownership percentage in each fund at March 31, 2022:
(Dollars in millions)SVBFG Capital CommitmentsSVBFG Unfunded CommitmentsSVBFG Ownership of each Fund
Redwood Evergreen Fund, LP$250 $186 100.0 %
CP II, LP (1)1 — 5.1 
Capital Preferred Return Fund, LP13 — 20.0 
Growth Partners, LP25 1 33.0 
Strategic Investors Fund, LP15 1 12.6 
Strategic Investors Fund II, LP15 1 8.6 
Strategic Investors Fund III, LP15 1 5.9 
Strategic Investors Fund IV, LP12 2 5.0 
Strategic Investors Fund V funds1 — Various
Other venture capital and private equity fund investments (equity method accounting) 18 6 Various
Debt funds (equity method accounting)59 — Various
Other fund investments (2)249 10 Various
Total$673 $208 
(1)Our ownership includes direct ownership of 1.3 percent and indirect ownership interest of 3.8 percent through our investment in Strategic Investors Fund II, LP.
(2)Represents commitments to 156 funds (primarily venture capital funds) where our ownership interest is generally less than 5.0 percent of the voting interests of each such fund.
At March 31, 2022 we had $3 million of remaining unfunded commitments to venture capital and private equity funds by our consolidated managed funds of funds (including our interest and the noncontrolling interests).