Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Loans and Allowance for Loan Losses

The composition of loans at amortized cost basis broken out by class of financing receivable at March 31, 2022 and December 31, 2021 is presented in the following table:

(Dollars in millions)	March 31, 2022		December 31, 2021
Global fund banking	$	39,344	$	37,958
Investor dependent:
Early stage	1,707		1,593
Growth stage	4,032		3,951
Total investor dependent	5,739		5,544
Cash flow dependent - SLBO	1,826		1,798
Innovation C&I	7,260		6,673
Private bank (4)	9,235		8,743
CRE (4)	2,595		2,670
Premium wine (4)	997		985
Other C&I	1,175		1,257
Other (4)	319		317
PPP	175		331
Total loans (1) (2) (3)	$	68,665	$	66,276
ACL	(421)		(422)
Net loans	$	68,244	$	65,854

(1)    Total loans at amortized cost is net of unearned income, deferred fees and costs, and net unamortized premiums and discounts of $207 million and $250 million at March 31, 2022 and December 31, 2021, respectively.

(2)     Included within our total loan portfolio are credit card loans of $627 million and $583 million at March 31, 2022 and December 31, 2021, respectively.

(3)     Included within our total loan portfolio are construction loans of $384 million and $367 million at March 31, 2022 and December 31, 2021, respectively.

(4)     Of our total loans, the table below includes those secured by real estate at amortized cost at March 31, 2022 and December 31, 2021 and were comprised of the following:

(Dollars in millions)	March 31, 2022		December 31, 2021
Real estate secured loans:
Private bank:
Loans for personal residence	$	7,302	$	6,939
Loans to eligible employees	463		455
Home equity lines of credit	130		130
Other	134		135
Total private bank loans secured by real estate	$	8,029	$	7,659
CRE:
Multifamily and residential investment	980		1,021
Retail	511		524
Office and medical	480		499
Manufacturing, industrial and warehouse	353		336
Hospitality	141		142
Other	130		148
Total CRE loans secured by real estate	$	2,595	$	2,670
Premium wine	794		793
Other	348		334
Total real estate secured loans	$	11,766	$	11,456

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 March 31, 2022 and December 31, 2021:

	Term Loans by Origination Year
March 31, 2022 (Dollars in millions)	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Unallocated (1)		Total
Global fund banking:
Risk rating:
Pass	$	292	$	294	$	122	$	33	$	4	$	12	$	38,587	$	—	$	—	$	39,344
Criticized	—		—		—		—		—		—		—		—		—		—
Nonperforming	—		—		—		—		—		—		—		—		—		—
Total global fund banking	$	292	$	294	$	122	$	33	$	4	$	12	$	38,587	$	—	$	—	$	39,344
Investor dependent:
Early stage:
Risk rating:
Pass	$	236	$	769	$	195	$	75	$	14	$	2	$	194	$	—	$	—	$	1,485
Criticized	8		81		69		20		5		2		32		—		—		217
Nonperforming	—		2		1		—		—		1		1		—		—		5
Total early stage	$	244	$	852	$	265	$	95	$	19	$	5	$	227	$	—	$	—	$	1,707
Growth stage:
Risk rating:
Pass	$	538	$	1,878	$	730	$	144	$	58	$	12	$	328	$	4	$	—	$	3,692
Criticized	18		172		78		19		2		3		45		—		—		337
Nonperforming	—		1		—		1		1		—		—		—		—		3
Total growth stage	$	556	$	2,051	$	808	$	164	$	61	$	15	$	373	$	4	$	—	$	4,032
Total investor dependent	$	800	$	2,903	$	1,073	$	259	$	80	$	20	$	600	$	4	$	—	$	5,739
Cash flow dependent - SLBO:
Risk rating:
Pass	$	289	$	753	$	298	$	225	$	68	$	65	$	29	$	—	$	—	$	1,727
Criticized	—		—		16		4		26		13		8		—		—		67
Nonperforming	—		—		—		11		9		7		5		—		—		32
Total cash flow dependent - SLBO	$	289	$	753	$	314	$	240	$	103	$	85	$	42	$	—	$	—	$	1,826
Innovation C&I
Risk rating:
Pass	$	673	$	2,115	$	977	$	248	$	76	$	57	$	2,635	$	—	$	—	$	6,781
Criticized	1		106		119		35		12		—		206		—		—		479
Nonperforming	—		—		—		—		—		—		—		—		—		—
Total innovation C&I	$	674	$	2,221	$	1,096	$	283	$	88	$	57	$	2,841	$	—	$	—	$	7,260
Private bank:
Risk rating:
Pass	$	771	$	2,929	$	1,932	$	1,044	$	485	$	1,248	$	782	$	8	$	—	$	9,199
Criticized	—		—		—		2		—		11		2		—		—		15
Nonperforming	—		—		1		2		7		9		2		—		—		21
Total private bank	$	771	$	2,929	$	1,933	$	1,048	$	492	$	1,268	$	786	$	8	$	—	$	9,235
CRE
Risk rating:
Pass	$	91	$	323	$	212	$	310	$	125	$	1,007	$	88	$	2	$	—	$	2,158
Criticized	2		2		39		117		37		205		18		12		—		432

Nonperforming	—		—		—		5		—		—		—		—		—		5
Total CRE	$	93	$	325	$	251	$	432	$	162	$	1,212	$	106	$	14	$	—	$	2,595
Premium wine:
Risk rating:
Pass	$	28	$	217	$	112	$	144	$	68	$	206	$	140	$	34	$	—	$	949
Criticized	—		1		7		11		9		10		10		—		—		48
Nonperforming	—		—		—		—		—		—		—		—		—		—
Total premium wine	$	28	$	218	$	119	$	155	$	77	$	216	$	150	$	34	$	—	$	997
Other C&I
Risk rating:
Pass	$	6	$	173	$	170	$	76	$	93	$	322	$	276	$	12	$	—	$	1,128
Criticized	—		4		6		7		7		5		10		4		—		43
Nonperforming	—		—		1		—		1		1		1		—		—		4
Total other C&I	$	6	$	177	$	177	$	83	$	101	$	328	$	287	$	16	$	—	$	1,175
Other:
Risk rating:
Pass	$	5	$	82	$	157	$	53	$	20	$	14	$	10	$	—	$	(36)	$	305
Criticized	—		—		11		1		—		2		—		—		—		14
Nonperforming	—		—		—		—		—		—		—		—		—		—
Total other	$	5	$	82	$	168	$	54	$	20	$	16	$	10	$	—	$	(36)	$	319
PPP:
Risk rating:
Pass	$	—	$	134	$	25	$	—	$	—	$	—	$	—	$	—	$	(3)	$	156
Criticized	—		12		7		—		—		—		—		—		—		19
Nonperforming	—		—		—		—		—		—		—		—		—		—
Total PPP	$	—	$	146	$	32	$	—	$	—	$	—	$	—	$	—	$	(3)	$	175
Total loans	$	2,958	$	10,048	$	5,285	$	2,587	$	1,127	$	3,214	$	43,409	$	76	$	(39)	$	68,665

(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, 2021 (Dollars in millions)	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Unallocated (1)		Total
Global fund banking:
Risk rating:
Pass	$	764	$	115	$	36	$	6	$	8	$	4	$	36,955	$	—	$	—	$	37,888
Criticized	50		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
Criticized	64		87		30		5		—		—		29		—		—		215
Nonperforming	2		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
Criticized	159		85		27		6		3		—		34		—		—		314
Nonperforming	2		—		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
Criticized	64		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
Criticized	3		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
Criticized	1		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
Criticized	5		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
Criticized	22		9		—		—		—		—		—		—		—		31
Nonperforming	2		—		—		—		—		—		—		—		—		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.

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 months ended March 31, 2022 and 2021, broken out by portfolio segment:

Three months ended March 31, 2022	Beginning Balance December 31, 2021		Charge-offs		Recoveries		Provision (Reduction) for Credit Loss for Loans		Foreign Currency Translation Adjustments		Ending Balance March 31, 2022
(Dollars in millions)
Global fund banking	$	67	$	—	$	—	$	(1)	$	—	$	66
Investor dependent	146		(17)		8		11		—		148
Cash flow dependent and innovation C&I	118		—		—		(3)		—		115
Private bank	33		—		2		2		—		37
CRE	36		—		—		(2)		—		34
Other C&I	14		(1)		—		(1)		—		12
Premium wine and other	8		—		—		2		(1)		9
Total ACL	$	422	$	(18)	$	10	$	8	$	(1)	$	421

Three months ended March 31, 2021	Beginning Balance December 31, 2020		Charge-offs		Recoveries		Provision (Reduction) for Credit Loss for Loans		Ending Balance March 31, 2021
(Dollars in millions)
Global fund banking	$	46	$	(80)	$	—	$	94	$	60
Investor dependent	213		(14)		5		(36)		168
Cash flow dependent and innovation C&I	125		—		—		(13)		112
Private Bank	53		—		—		(9)		44
Premium wine and other	9		(1)		—		—		8
PPP	2		—		—		(2)		—
Total ACL	$	448	$	(95)	$	5	$	34	$	392

The following table summarizes the activity relating to our ACL for unfunded credit commitments for the three months ended March 31, 2022 and 2021:

	Three months ended March 31,
(Dollars in millions)	2022		2021
ACL: unfunded credit commitments, beginning balance	$	171	$	121
Provision for (reduction in) credit losses	4		(16)
ACL: unfunded credit commitments, ending balance (1)	$	175	$	105

(1)The “ACL: unfunded credit commitments” is included as a component of “other liabilities” on our unaudited interim consolidated balance sheets. See Note 11 — “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 March 31, 2022 and December 31, 2021:

(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
March 31, 2022:
Global fund banking	$	—	$	—	$	—	$	—	$	39,344	$	39,344	$	—
Investor dependent:
Early stage	2		1		1		4		1,703		1,707		—
Growth stage	33		—		—		33		3,999		4,032		—
Total investor dependent	35		1		1		37		5,702		5,739		—
Cash flow dependent - SLBO	—		—		—		—		1,826		1,826		—
Innovation C&I	7		1		—		8		7,252		7,260		—
Private bank	24		1		11		36		9,199		9,235		—
CRE	1		—		—		1		2,594		2,595		—
Premium wine	—		—		—		—		997		997		—
Other C&I	12		—		1		13		1,162		1,175		—
Other	—		—		—		—		319		319		—
PPP	—		—		3		3		172		175		2
Total loans	$	79	$	3	$	16	$	98	$	68,567	$	68,665	$	2
December 31, 2021:
Global fund banking	$	—	$	—	$	—	$	—	$	37,958	$	37,958	$	—
Investor dependent:
Early stage	6		5		—		11		1,582		1,593		—
Growth stage	16		—		—		16		3,935		3,951		—
Total investor dependent	22		5		—		27		5,517		5,544		—
Cash flow dependent - SLBO	—		—		—		—		1,798		1,798		—
Innovation C&I	7		—		7		14		6,659		6,673		7
Private bank	28		1		12		41		8,702		8,743		—
CRE	1		—		—		1		2,669		2,670		—
Premium wine	3		—		—		3		982		985		—
Other C&I	1		2		1		4		1,253		1,257		—
Other	—		—		—		—		317		317		—
PPP	1		—		—		1		330		331		—
Total loans	$	63	$	8	$	20	$	91	$	66,185	$	66,276	$	7

Financing Receivable, Nonaccrual

The following table summarizes our nonaccrual loans with no allowance for credit loss at March 31, 2022 and December 31, 2021:

	March 31, 2022				December 31, 2021
(Dollars in millions)	Nonaccrual Loans		Nonaccrual Loans with no Allowance for Credit Loss		Nonaccrual Loans		Nonaccrual Loans with no Allowance for Credit Loss
Investor dependent:
Early stage	$	5	$	1	$	11	$	—
Growth stage	3		—		6		—
Total investor dependent	8		1		17		—
Cash flow dependent - SLBO	32		—		34		—
Innovation C&I	—		—		1		1
Private bank	21		13		21		8
CRE	5		5		5		—
Other C&I	4		1		4		—
PPP	—		—		2		—
Total nonaccrual loans	$	70	$	20	$	84	$	9

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 March 31, 2022 and December 31, 2021:

(Dollars in millions)	March 31, 2022		December 31, 2021
Loans modified in TDRs:
Investor dependent:
Early stage	$	2	$	12
Growth stage	3		3
Total investor dependent	5		15
Cash flow dependent - SLBO	33		34
Private bank	18		12
CRE	33		33
Other C&I	3		2
Total loans modified in TDRs	$	92	$	96

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 months ended March 31, 2022 and 2021:

	Three months ended March 31,
(Dollars in millions)	2022		2021
Loans modified in TDRs during the period:
Investor dependent:
Growth stage	$	1	—
Total investor dependent	1		—
Cash flow dependent - SLBO	—		18
Innovation C&I	—		4
Private bank	6		2
Other C&I	1		—
Total loans modified in TDRs during the period (1)	$	8	$	24

(1)There were $5 million partial charge-offs for the three months ended March 31, 2022 compared to $2 million of partial charge-offs for the three months ended March 31, 2021.

Activity Relating to ACL for Unfunded Credit Commitments

The following tables summarize the activity relating to our ACL for loans for the three months ended March 31, 2022 and 2021, broken out by portfolio segment:

Three months ended March 31, 2022	Beginning Balance December 31, 2021		Charge-offs		Recoveries		Provision (Reduction) for Credit Loss for Loans		Foreign Currency Translation Adjustments		Ending Balance March 31, 2022
(Dollars in millions)
Global fund banking	$	67	$	—	$	—	$	(1)	$	—	$	66
Investor dependent	146		(17)		8		11		—		148
Cash flow dependent and innovation C&I	118		—		—		(3)		—		115
Private bank	33		—		2		2		—		37
CRE	36		—		—		(2)		—		34
Other C&I	14		(1)		—		(1)		—		12
Premium wine and other	8		—		—		2		(1)		9
Total ACL	$	422	$	(18)	$	10	$	8	$	(1)	$	421

Three months ended March 31, 2021	Beginning Balance December 31, 2020		Charge-offs		Recoveries		Provision (Reduction) for Credit Loss for Loans		Ending Balance March 31, 2021
(Dollars in millions)
Global fund banking	$	46	$	(80)	$	—	$	94	$	60
Investor dependent	213		(14)		5		(36)		168
Cash flow dependent and innovation C&I	125		—		—		(13)		112
Private Bank	53		—		—		(9)		44
Premium wine and other	9		(1)		—		—		8
PPP	2		—		—		(2)		—
Total ACL	$	448	$	(95)	$	5	$	34	$	392

The following table summarizes the activity relating to our ACL for unfunded credit commitments for the three months ended March 31, 2022 and 2021:

	Three months ended March 31,
(Dollars in millions)	2022		2021
ACL: unfunded credit commitments, beginning balance	$	171	$	121
Provision for (reduction in) credit losses	4		(16)
ACL: unfunded credit commitments, ending balance (1)	$	175	$	105

(1)The “ACL: unfunded credit commitments” is included as a component of “other liabilities” on our unaudited interim consolidated balance sheets. See Note 11 — “Off-Balance Sheet Arrangements, Guarantees and Other Commitments” of this report for additional disclosures related to our commitments to extend credit.