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Loans and Allowance for Credit Losses: Loans and Unfunded Credit Commitments
 12 Months Ended
Dec. 31, 2022
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, commercial real estate and premium wine sectors. 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 ERI. Our life science/healthcare clients primarily tend to be in the industries of biotechnology, medical devices, healthcare information technology and healthcare services. 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. Commercial real estate loans are generally acquisition financing for commercial properties such as office buildings, retail properties, apartment buildings and industrial/warehouse space, which moving forward, will predominantly support the innovation economy segments. 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.
In addition to commercial loans, we make consumer loans through SVB Private 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. The majority of these loans are included within the Other and CRE loan class 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 Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and originated loans to qualified small businesses. PPP funds under the CARES Act were disbursed throughout 2020 and up to June 30, 2021.
Loan Portfolio Segments and Classes of Financing Receivables
The composition of loans at amortized cost basis broken out by class of financing receivable at December 31, 2022, and December 31, 2021, respectively, is presented in the following table:
December 31,
(Dollars in millions)20222021
Global fund banking$41,269 $37,958 
Investor dependent:
Early stage1,950 1,593 
Growth stage4,763 3,951 
Total investor dependent6,713 5,544 
Cash flow dependent — SLBO1,966 1,798 
Innovation C&I8,609 6,673 
Private bank10,477 8,743 
CRE2,583 2,670 
Premium wine1,158 985 
Other C&I1,019 1,257 
Other433 317 
PPP23 331 
Total loans (1) (2) (3)$74,250 $66,276 
ACL(636)(422)
Net loans$73,614 $65,854 
(1)Total loans at amortized cost is net of unearned income, deferred fees and costs and net unamortized premiums and discounts of $283 million and $250 million at December 31, 2022, and December 31, 2021, respectively.
(2)Included within our total loan portfolio are credit card loans of $555 million and $583 million at December 31, 2022, and December 31, 2021, respectively.
(3)Included within our total loan portfolio are construction loans of $539 million and $367 million at December 31, 2022, and December 31, 2021, respectively.
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 and translate to an internal rating of “Criticized.” All of our nonaccrual loans are risk-rated 8 or 9 and are classified with the internal rating of “Nonperforming.” 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 receivable and vintage year, as of December 31, 2022, and December 31, 2021.
Term Loans by Origination Year
December 31, 2022 (Dollars in millions)20222021202020192018PriorRevolving LoansRevolving Loans Converted to Term LoansUnallocated (1)Total
Global fund banking:
Risk rating:
Pass $543 $90 $55 $29 $1 $5 $40,539 $3 $— $41,265 
Criticized— — — — — — 4 — — 4 
Nonperforming— — — — — — — — — — 
Total global fund banking$543 $90 $55 $29 $1 $5 $40,543 $3 $— $41,269 
Investor dependent:
Early stage:
Risk rating:
Pass $910 $480 $44 $12 $1 $— $182 $— $— $1,629 
Criticized130 120 18 5 — — 31 — — 304 
Nonperforming5 7 1 2 — — 2 — — 17 
Total early stage$1,045 $607 $63 $19 $1 $— $215 $— $— $1,950 
Growth stage:
Risk rating:
Pass $2,358 $1,175 $283 $34 $8 $2 $300 $5 $— $4,165 
Criticized186 233 81 5 3 3 32 — — 543 
Nonperforming20 31 — — — — 4 — — 55 
Total growth stage$2,564 $1,439 $364 $39 $11 $5 $336 $5 $— $4,763 
Total investor dependent$3,609 $2,046 $427 $58 $12 $5 $551 $5 $— $6,713 
Cash flow dependent — SLBO:
Risk rating:
Pass $930 $550 $169 $162 $14 $19 $37 $— $— $1,881 
Criticized17 34 16 — 2 11 5 — — 85 
Nonperforming— — — — — — — — — — 
Total cash flow dependent — SLBO$947 $584 $185 $162 $16 $30 $42 $— $— $1,966 
Innovation C&I:
Risk rating:
Pass $2,554 $1,309 $495 $157 $5 $35 $3,152 $— $— $7,707 
Criticized65 224 168 33 11 — 373 — — 874 
Nonperforming7 — — — — — 21 — — 28 
Total innovation C&I$2,626 $1,533 $663 $190 $16 $35 $3,546 $— $— $8,609 
Private bank:
Risk rating:
Pass $2,782 $2,754 $1,718 $912 $427 $978 $832 $12 $— $10,415 
Criticized— 16 — 2 1 14 4 — — 37 
Nonperforming— — 1 2 1 20 1 — — 25 
Total private bank$2,782 $2,770 $1,719 $916 $429 $1,012 $837 $12 $— $10,477 
CRE
Risk rating:
Pass$519 $276 $193 $211 $144 $802 $102 $5 $— $2,252 
Criticized— 11 39 133 14 112 17 — — 326 
Nonperforming— — — 5 — — — — — 5 
Total CRE$519 $287 $232 $349 $158 $914 $119 $5 $— $2,583 
Premium wine:
Risk rating:
Pass $309 $209 $90 $135 $43 $135 $163 $33 $— $1,117 
Criticized1 5 — 7 9 9 10 — — 41 
Nonperforming— — — — — — — — — — 
Total premium wine$310 $214 $90 $142 $52 $144 $173 $33 $— $1,158 
Other C&I
Term Loans by Origination Year
December 31, 2022 (Dollars in millions)20222021202020192018PriorRevolving LoansRevolving Loans Converted to Term LoansUnallocated (1)Total
Risk rating:
Pass$34 $141 $156 $64 $81 $284 $207 $10 $— $977 
Criticized2 — 1 4 1 22 9 1 — 40 
Nonperforming— — 1 — — 1 — — — 2 
Total other C&I$36 $141 $158 $68 $82 $307 $216 $11 $— $1,019 
Other:
Risk rating:
Pass $114 $189 $148 $29 $— $— $9 $2 $(75)$416 
Criticized— 7 2 8 — — — — — 17 
Nonperforming— — — — — — — — — — 
Total other$114 $196 $150 $37 $— $— $9 $2 $(75)$433 
PPP:
Risk rating:
Pass $— $12 $3 $— $— $— $— $— $— $15 
Criticized— 3 5 — — — — — — 8 
Nonperforming— — — — — — — — — — 
Total PPP$— $15 $8 $— $— $— $— $— $— $23 
Total loans$11,486 $7,876 $3,687 $1,951 $766 $2,452 $46,036 $71 $(75)$74,250 
(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)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 
Term Loans by Origination Year
December 31, 2021 (Dollars in millions)20212020201920182017PriorRevolving LoansRevolving Loans Converted to Term LoansUnallocated (1)Total
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.
Allowance for Credit Losses: Loans
As of December 31, 2022, the ACL for loans increased by $214 million from December 31, 2021, driven primarily by loan growth and the continued deterioration in projected economic conditions.
The Moody's Analytics' December 2022 forecast was utilized in our quantitative model for the ACL as of December 31, 2022. The forecast assumptions reflected deterioration in the gross domestic product growth rate and unemployment rate, as well as a projected shrinkage of the housing price index. The overall impact of these assumptions was a worse forecast than that used at December 31, 2021. We determined the forecast to be representative of our outlook for the economy given the available information at year end.
We do not estimate expected credit losses on AIR on loans, as AIR is reversed or written off when the full collection of the AIR related to a loan becomes doubtful. AIR on loans totaled $402 million as of December 31, 2022, and $171 million as of December 31, 2021, and is reported in "Accrued interest receivable and other assets" in our consolidated balance sheets.
The following tables summarize the activity relating to our ACL for loans for 2022, 2021 and 2020 broken out by portfolio segment:
Year ended December 31, 2022 Beginning Balance December 31, 2021Charge-offsRecoveriesProvision (Reduction) for LoansForeign Currency Translation AdjustmentsEnding Balance December 31, 2022
(Dollars in millions)
Global fund banking$67 $— $7 $36 $— $110 
Investor dependent146 (79)20 184 2 $273 
Cash flow dependent and Innovation C&I118 (19)1 55 — $155 
Private bank33 — 2 15 — $50 
CRE36 — — (11)— $25 
Other C&I14 (4)1 2 — $13 
Premium wine and other8 (1)1 7 (5)$10 
Total ACL$422 $(103)$32 $288 $(3)$636 

Year ended December 31, 2021Beginning 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 at December 31, 2019Impact of Adopting ASC 326Charge-offsRecoveriesProvision (Reduction) for LoansForeign Currency Translation AdjustmentsEnding Balance at 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 
The following table summarizes the aging of our loans broken out by class of financing receivables as of December 31, 2022, and December 31, 2021:
(Dollars in millions)30 - 59
  Days Past
Due		60 - 89
  Days Past  Due		90 or More Days Past Due  Total Past  DueCurrent  Total  90 Days or More Past Due, Still
Accruing
Interest
December 31, 2022:
Global fund banking$20 $— $— $20 $41,249 $41,269 $— 
Investor dependent:
Early stage11 13 2 26 1,924 1,950 — 
Growth stage26 — 3 29 4,734 4,763 — 
Total investor dependent37 13 5 55 6,658 6,713 — 
Cash flow dependent - SLBO— — — — 1,966 1,966 — 
Innovation C&I2 1 — 3 8,606 8,609 — 
Private bank22 2 17 41 10,436 10,477 1 
CRE10 1 — 11 2,572 2,583 — 
Premium wine3 — — 3 1,155 1,158 — 
Other C&I2 — 2 4 1,015 1,019 — 
Other— — — — 433 433 — 
PPP— — 5 5 18 23 4 
Total loans (1)$96 $17 $29 $142 $74,108 $74,250 $5 
December 31, 2021:
Global fund banking$— $— $— $— $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$63 $8 $20 $91 $66,185 $66,276 $7 
Nonaccrual Loans
The following table summarizes our nonaccrual loans with no ACL at December 31, 2022, and December 31, 2021:
December 31, 2022December 31, 2021
(Dollars in millions)Nonaccrual LoansNonaccrual Loans with no ACLNonaccrual Loans Nonaccrual Loans with no ACL
Investor dependent:
Early stage$17 $— $11 $— 
Growth stage55 3 6 — 
Total investor dependent72 3 17 — 
Cash flow dependent - SLBO— — 34 — 
Innovation C&I28 — 1 1 
Private bank25 7 21 8 
CRE5 — 5 — 
Other C&I2 1 4 — 
PPP— — 2 — 
Total nonaccrual loans$132 $11 $84 $9 
Troubled Debt Restructurings
As of December 31, 2022, we had 36 TDRs with a total carrying value of $90 million where concessions have been granted to borrowers experiencing financial difficulties in an attempt to maximize collection. We had no unfunded commitments available for funding to the clients associated with these TDRs as of December 31, 2022. 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, as of December 31, 2022 and December 31, 2021:
(Dollars in millions)December 31, 2022December 31, 2021
Loans modified in TDRs:
Investor dependent:
Early stage$1 $12 
Growth stage303 
Total investor dependent31 15 
Cash flow dependent - SLBO— 34 
Innovation C&I1 — 
Private bank24 12 
CRE33 33 
Other C&I12 
Total loans modified in TDRs$90 $96 
The following table summarizes the recorded investment in loans modified in TDRs, broken out by class of financing receivables, for modifications made during 2022, 2021 and 2020:
 Year ended December 31,
(Dollars in millions)202220212020
Loans modified in TDRs during the period:
Investor dependent:
Early stage$— $12 $6 
Growth stage30 — 26 
Total investor dependent30 12 32 
Cash flow dependent - SLBO— 12 22 
Innovation C&I1 — 1 
Private bank17 4 — 
CRE5 29 — 
Premium wine— — 1 
Total loans modified in TDRs during the period (1)$53 $57 $56 
(1)There were $110 million, $6 million and $31 million of partial charge-offs during 2022, 2021 and 2020, respectively.

During 2022, $52 million of new TDRs were modified through payment deferrals granted to our clients and $1 million were modified through interest rate reductions. 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.
Of loans modified in TDRs within the previous 12 months, $1 million in Investor Dependent - Early Stage and $1 million in Innovation C&I defaulted on the modified terms during the year ended December 31, 2022. There were no defaults of loans modified in TDRs during the year ended December 31, 2021. There were $1 million in defaults on TDRs during the year ended December 31, 2020 in Premium Wine.
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, 2022.
ACL: 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, 2022, our ACL estimates utilized the Moody's economic forecasts from December 2022 as mentioned above. The ACL for unfunded commitments increased by $132 million from prior year, driven primarily by continued growth in our outstanding commitments, as well as the same deterioration in projected economic conditions described above.
The following table summarizes the activity relating to our ACL for unfunded credit commitments for 2022, 2021 and 2020:
 December 31,
(Dollars in millions)202220212020
ACL: unfunded credit commitments, beginning balance$171 $121 $68 
Impact of adopting ASC 326— — 23 
Provision for credit losses133 50 30 
Foreign currency translation adjustments(1)— — 
ACL: unfunded credit commitments, ending balance (1)$303 $171 $121 
(1)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.