Balance (in shares) at Dec. 31, 2013

4

3

1

4

45,800,418

Balance at Dec. 31, 2013

3,074,693

$ 46

624,256

1,386,097

(48,764)

1,961,635

1,113,058

Cumulative effect of adopting ASU 2014-01 | Accounting Standards Update 2014-01

^[5]

(3,299)

Common stock issued under employee benefit plans, net of restricted stock cancellations (in shares)

608,745

Common stock issued under employee benefit plans, net of restricted stock cancellations

18,256

$ 0

18,256

Common stock issued under ESOP (in shares)

30,762

Common stock issued under ESOP

3,890

Income tax benefit from stock options exercised, vesting of restricted stock and other

9,595

Net income

^[5]

478,660

^{[1],[2],[3],[4]}

263,870

214,790

Capital calls and distributions, net

(89,186)

Net change in unrealized gains on available-for-sale securities, net of tax

66,520

Held-to-maturity Securities, Transferred Securities, Unrealized Gains, Net Of Tax

22,522

Foreign currency translation adjustments, net of tax

6,557

Share-based compensation expense

29,491

Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax

1

0

1

(4,131)

Common stock issued in public offering (in shares)

4,485,000

Common stock issued in public offering, shares

434,866

$ 5

434,861

434,866

Balance (in shares) at Dec. 31, 2014

50,924,925

Balance at Dec. 31, 2014

4,051,734

$ 51

1,120,350

1,649,967

42,704

2,813,072

1,238,662

Common stock issued under employee benefit plans, net of restricted stock cancellations (in shares)

657,876

Common stock issued under employee benefit plans, net of restricted stock cancellations

18,898

$ 1

18,897

18,898

Common stock issued under ESOP (in shares)

27,425

Common stock issued under ESOP

3,512

Income tax benefit from stock options exercised, vesting of restricted stock and other

16,602

Deconsolidation of noncontrolling interest

^[5]

(1,069,437)

Net income

374,820

^{[2],[3],[4],[6]}

343,904

30,916

Capital calls and distributions, net

(65,044)

Net change in unrealized gains on available-for-sale securities, net of tax

(22,692)

Foreign currency translation adjustments, net of tax

1,613

Share-based compensation expense

29,671

Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax

(225)

(6,221)

Balance (in shares) at Dec. 31, 2015

51,610,226

Balance at Dec. 31, 2015

$ 3,333,231

$ 52

$ 1,189,032

1,993,646

$ 15,404

$ 3,198,134

$ 135,097

Cumulative effect of adopting ASU 2014-01 | Accounting Standards Update 2014-01

^[5]

$ 4,700

[1]	Cash flows for the years ended December 31, 2014 and 2013 were revised to reflect the retrospective application of our adoption of ASU 2014-01.
[2]	During the second quarter of 2015 we adopted new accounting guidance related to our consolidated variable interest entities (ASU 2015-02). Amounts prior to January 1, 2015 have not been revised for the adoption of this guidance. See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[3]	Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in qualified affordable housing projects (ASU 2014-01). See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[4]	Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in qualified affordable housing projects (ASU 2014-01). See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[5]	See Note 2— "Summary of Significant Accounting Policies-Adoptions of New Accounting Standards” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[6]	During the second quarter of 2015 we adopted new accounting guidance related to our consolidated variable interest entities (ASU 2015-02). Amounts prior to January 1, 2015 have not been revised for the adoption of this guidance. See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.

Consolidated Statements of Cash Flows
$ in Thousands

12 Months Ended

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Cash flows from operating activities:

Net income before noncontrolling interests

$ 374,820

^{[1],[2],[3],[4]}

$ 478,660

^{[2],[3],[4],[5],[6]}

$ 544,783

^{[2],[3],[4],[5],[6]}

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for loan losses

97,629

59,486

63,693

(Reduction of) Provision for unfunded credit commitments

(1,946)

6,511

7,642

Changes in fair values of derivatives, net

(53,470)

(22,139)

(31,508)

Gains on investment securities, net

(89,445)

(267,023)

(419,408)

Depreciation and amortization

40,008

39,345

^[5]

36,260

^[5]

Impairment loss on SVBIF Sale Transaction

0

13,934

0

Impairment (gain) loss on SVBIF Sale Transaction

(1,287)

13,934

0

Amortization of premiums and discounts on available-for-sale securities, net

18,271

25,311

29,774

Amortization of share-based compensation

32,239

29,545

25,413

Amortization of deferred loan fees

(89,384)

(82,724)

(73,008)

Deferred income tax (benefit) expense

(9,133)

(43,110)

^[5]

15,050

^[5]

Changes in other assets and liabilities:

Accrued interest receivable and payable, net

(8,397)

(26,642)

(3,241)

Accounts receivable and payable, net

(24,029)

(302)

(21)

Income tax payable and receivable, net

(9,857)

(4,804)

(24,811)

Accrued compensation

30,293

3,707

22,925

Foreign exchange spot contracts, net

(31,159)

25,725

2,086

Net cash provided by operating activities

64,660

20,037

(23,851)

339,813

255,517

171,778

Cash flows from investing activities:

Purchases of available-for-sale securities

(4,586,680)

(8,462,071)

(3,336,476)

Proceeds from sales of available-for-sale securities

8,054

30,398

14,753

Proceeds from maturities and pay downs of available-for-sale securities

1,704,918

1,569,173

2,428,023

Purchases of held-to-maturity securities

(2,888,805)

(2,612,848)

0

Proceeds from maturities and paydowns of held-to-maturity securities

1,495,362

598,454

0

Purchases of nonmarketable securities (cost and equity method accounting)

(32,427)

(60,202)

(24,847)

Proceeds from sales of nonmarketable securities (cost and equity method accounting)

89,826

59,442

58,828

Purchases of non-marketable and other securities (fair value accounting)

(7,028)

(275,640)

(149,707)

Proceeds from sales and distributions of non-marketable and other securities (fair value accounting)

48,627

436,170

132,931

Net increase in loans

(2,335,153)

(3,480,531)

(1,943,650)

Proceeds from recoveries of charged-off loans

5,593

6,155

11,161

Purchases of premises and equipment

(53,918)

(42,431)

(30,004)

Effect of deconsolidation due to adoption of ASU 2015-02

15,995

0

Net proceeds from SVBIF sale transaction

39,284

^[7]

0

Net cash used for investing activities

(6,496,352)

(12,233,931)

(2,838,988)

Cash flows from financing activities:

Net increase in deposits

4,719,738

11,870,520

3,296,527

Increase (decrease) in short-term borrowings

767,119

2,701

(161,030)

(Distributions to noncontrolling interests), net of contributions from noncontrolling interests

(23,518)

(89,186)

8,114

Tax benefit from stock exercises

16,602

9,602

6,826

Proceeds from issuance of common stock, ESPP, and ESOP

22,410

22,146

46,569

Proceeds from issuance of 3.50% Senior Notes

346,431

0

Net proceeds from public equity offering

0

434,866

0

Net cash provided by financing activities

5,848,782

12,250,649

3,197,006

Net increase (decrease) in cash and cash equivalents

(307,757)

272,235

529,796

Cash and cash equivalents at beginning of period

1,796,062

1,538,779

^[7]

1,008,983

Cash and cash equivalents at end of period

1,503,257

1,796,062

1,538,779

^[7]

Cash and cash equivalents, at end of period, including discontinued operations

1,503,257

1,811,014

^[7]

Cash paid during the period for:

Interest

35,280

35,181

31,913

Income taxes

220,484

208,558

142,231

Noncash items during the period:

Changes in unrealized gains and losses on available-for-sale securities, net of tax

(22,692)

66,520

(154,013)

Distributions Of Stock From Investments

64,503

^[8]

20,621

1,116

Transfers from available-for-sale securities to held-to-maturity

0

$ 5,418,572

$ 0

Distributions of stock from investments to NCI

$ 41,500

[1]	During the second quarter of 2015 we adopted new accounting guidance related to our consolidated variable interest entities (ASU 2015-02). Amounts prior to January 1, 2015 have not been revised for the adoption of this guidance. See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[2]	During the second quarter of 2015 we adopted new accounting guidance related to our consolidated variable interest entities (ASU 2015-02). Amounts prior to January 1, 2015 have not been revised for the adoption of this guidance. See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[3]	Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in qualified affordable housing projects (ASU 2014-01). See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[4]	Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in qualified affordable housing projects (ASU 2014-01). See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[5]	Cash flows for the years ended December 31, 2014 and 2013 were revised to reflect the retrospective application of our adoption of ASU 2014-01.
[6]	See Note 2— "Summary of Significant Accounting Policies-Adoptions of New Accounting Standards” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.
[7]	Cash and cash equivalents at December 31, 2014 included $15.0 million recognized in assets held-for-sale in conjunction with the SVBIF sale transaction. On April 13, 2015 we received net proceeds of $39.3 million consisting of the sales price of $48.6 million less $9.3 million of cash and cash equivalents held by SVBIF that were sold.
[8]	For the year ended December 31, 2015, includes distributions to our noncontrolling interests of $41.5 million.

Consolidated Statements of Cash Flows (Parenthetical)
$ in Thousands

12 Months Ended

Dec. 31, 2015

USD ($)

Long Lived Assets Held-for-sale [Line Items]

Cash and cash equivalents

$ 1,503,257

Net proceeds from SVBIF sale transaction

39,284

^[1]

Sales price of assets sold

48,600

Cash and cash equivalents included in sale of assets

9,300

Other Assets

Long Lived Assets Held-for-sale [Line Items]

Cash and cash equivalents

$ 15,000

[1]

Cash and cash equivalents at December 31, 2014 included $15.0 million recognized in assets held-for-sale in conjunction with the SVBIF sale transaction. On April 13, 2015 we received net proceeds of $39.3 million consisting of the sales price of $48.6 million less $9.3 million of cash and cash equivalents held by SVBIF that were sold.

Nature of Business	12 Months Ended
Nature of Business	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business SVB Financial Group is a diversified financial services company, as well as a bank holding company and a financial holding company. SVB Financial was incorporated in the state of Delaware in March 1999. Through our various subsidiaries and divisions, we offer a variety of banking and financial products and services to support our clients of all sizes and stages throughout their life cycles. In these notes to our consolidated financial statements, when we refer to “SVB Financial Group,” “SVBFG”, the “Company,” “we,” “our,” “us” or use similar words, we mean SVB Financial Group and all of its subsidiaries collectively, including Silicon Valley Bank (the “Bank”), unless the context requires otherwise. When we refer to “SVB Financial” or the “Parent” we are referring only to the parent company, SVB Financial Group, unless the context requires otherwise. We offer commercial banking products and services through our principal subsidiary, the Bank, which is a California-chartered bank founded in 1983 and a member of the Federal Reserve System. Through its subsidiaries, the Bank also offers investment advisory, asset management, private wealth management and brokerage services. We also offer non-banking products and services, such as funds management, private equity/venture capital investment and business valuation services, through our other subsidiaries and divisions. We primarily focus on serving corporate clients in the following niches: technology, life science/healthcare, private equity/venture capital and premium wine. Our corporate clients range widely in terms of size and stage of maturity. Additionally, we focus on cultivating strong relationships with firms within the venture capital and private equity community worldwide, many of which are also our clients and may invest in our corporate clients. Headquartered in Santa Clara, California, we operate in centers of innovation in the United States and around the world. For reporting purposes, SVB Financial Group has three operating segments for which we report financial information in this report: Global Commercial Bank, SVB Private Bank, and SVB Capital. Financial information, results of operations and a description of the services provided by our operating segments are set forth in Note 22-“Segment Reporting” in this report.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Use of Estimates and Assumptions

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates may change as new information is obtained. Significant items that are subject to such estimates include measurements of fair value, the valuation of non-marketable and other securities, the valuation of equity warrant assets, the adequacy of the allowance for loan losses and reserve for unfunded credit commitments and the recognition and measurement of income tax assets and liabilities. The following discussion provides additional background on our significant accounting policies.

Principles of Consolidation and Presentation

Prior to April 1, 2015, the Company’s consolidated financial statements included the accounts of SVB Financial Group and entities in which we had a controlling interest. The determination of whether we had a controlling interest was based on consolidation principles prescribed by ASC Topic 810, Consolidation, and whether the controlling interest in an entity was a voting interest entity or a variable interest entity (“VIE”). However, during the three months ended June 30, 2015, we early adopted the provisions of ASU 2015-02, Amendments to the Consolidation Analysis (ASU 2015-02)(see "Adoption of New Accounting Standards" below), which simplifies consolidation accounting by reducing the number of consolidation models and changing various aspects of current GAAP, including certain consolidation criteria for variable interest entities. The new guidance eliminates the presumption that a general partner of a limited partnership arrangement should consolidate a limited partnership. The amendments to ASC Topic 810 in ASU 2015-02 modify the evaluation of whether limited partnerships and similar entities are VIEs or voting entities. With these changes, we determined that the majority of our investments in limited partnership arrangements are VIEs under the new guidance while these entities were typically voting interest entities under the prior guidance.

ASU 2015-02 provided a single model for evaluating VIE entities for consolidation. VIEs are entities where investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or equity investors, as a group, lack one of the following characteristics: (a) the power to direct the activities that most significantly impact the entity’s economic performance, (b) the obligation to absorb the expected losses of the entity, or (c) the right to receive the expected returns of the entity. We assess VIEs to determine if we are the primary beneficiary of a VIE. A primary beneficiary is defined as a variable interest holder that has a controlling financial interest. A controlling financial interest requires both: (a) the power to direct the activities that most significantly impact the VIEs economic performance, and (b) the obligation to absorb losses or receive benefits of a VIE that could potentially be significant to a VIE. Under this analysis, we also evaluate kick-out rights and other participating rights, which could provide us a controlling financial interest. The primary beneficiary of a VIE is required to consolidate the VIE.

ASU 2015-02 also changed how we evaluate fees paid to managers of our limited partnership investments. Under the new guidance, we exclude those fee arrangements that are not deemed to be variable interests from the analysis of our interests in our investments in VIEs and the determination of a primary beneficiary, if any. Fee arrangements based on terms that are customary and commensurate with the services provided are deemed not to be variable interests and are, therefore, excluded.

Our consolidated financial statements include the accounts of SVB Financial Group and consolidated entities. We consolidate voting entities in which we have control through voting interests. We determine whether we have a controlling financial interest in a VIE by determining if we have the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and whether we have significant variable interests. Generally, we have significant variable interests if our commitments to a limited partnership investment represent a significant amount of the total commitments to the entity. We also evaluate the impact of related parties on our determination of variable interests in our consolidation conclusions. We consolidate VIEs in which we are the primary beneficiary based on a controlling financial interest. If we are not the primary beneficiary of a VIE, we record our pro-rata interests or our cost basis in the VIE, as appropriate, based on other accounting guidance within GAAP.

All significant intercompany accounts and transactions with consolidated entities have been eliminated. We have not provided financial or other support during the periods presented to any VIE that we were not previously contractually required to provide.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, cash balances due from banks, interest-earning deposits, Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities. For the consolidated statements of cash flows, we consider cash equivalents to be investments that are readily convertible to known amounts of cash, so near to their maturity that they present an insignificant risk of change in fair value due to changes in market interest rates, and purchased in conjunction with our cash management activities.

Investment Securities

Available-for-Sale Securities

Our available-for-sale securities portfolio is a fixed income investment portfolio that is managed to earn an appropriate portfolio yield over the long-term while maintaining sufficient liquidity and credit diversification as well as addressing our asset/liability management objectives. Unrealized gains and losses on available-for-sale securities, net of applicable taxes, are reported in accumulated other comprehensive income, which is a separate component of SVBFG's stockholders' equity, until realized.

We analyze available-for-sale securities for other-than-temporary impairment each quarter. Market valuations represent the current fair value of a security at a specified point in time and incorporates the risk of timing of interest due and the return of principal over the contractual life of each security. Gains and losses on securities are realized when there is a sale of the security prior to maturity. A credit downgrade represents an increased level of risk of other-than-temporary impairment, and as a part of our consideration of recording an other-than-temporary impairment we will assess the issuer's ability to service the debt and to repay the principal at contractual maturity.

We apply the other-than-temporary impairment standards of ASC 320, Investments-Debt and Equity Securities. For our debt securities, we have the intent and ability to hold these securities until we recover our cost less any credit-related loss. We separate the amount of the other-than-temporary impairment, if any, into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between a security's amortized cost basis and the present value of expected future cash flows discounted at the security's effective interest rate. The amount due to all other factors is recognized in other comprehensive income.

We consider numerous factors in determining whether a credit loss exists and the period over which the debt security is expected to recover. The following list is not meant to be all inclusive. All of the following factors are considered:


•	The length of time and the extent to which the fair value has been less than the amortized cost basis (severity and duration);


•	Adverse conditions specifically related to the security, an industry, or geographic area; for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, changes in the financial condition of the underlying loan obligors. Examples of those changes include any of the following:


◦	Changes in technology;


◦	The discontinuance of a segment of the business that may affect the future earnings potential of the issuer or underlying loan obligors of the security; and


◦	Changes in the quality of the credit enhancement.


•	The historical and implied volatility of the fair value of the security;


•	The payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future;


•	Failure of the issuer of the security to make scheduled interest or principal payments;


•	Any changes to the rating of the security by a rating agency; and


•	Recoveries or additional declines in fair value after the balance sheet date.

In accordance with ASC 310-20, Receivables-Nonrefundable Fees and Other Costs, we use estimates of future principal prepayments, provided by third-party market-data vendors, in addition to actual principal prepayment experience to calculate the constant effective yield necessary to apply the effective interest method in the amortization of purchase discounts or premiums on mortgage-backed securities and fixed rate collateralized mortgage obligations (“CMO”). The accretion and amortization of discounts and premiums, respectively, are included in interest income over the contractual terms of the underlying securities replicating the effective interest method.

Held-to-Maturity Securities

Debt securities purchased in which we have the positive intent and ability to hold to its maturity are classified as held-to-maturity securities and are recorded at amortized cost.

During the second quarter of 2014, we re-designated certain securities from the classification of "available-for-sale" ("AFS") to "held-to-maturity" ("HTM"). Transfers of investment securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized gains (losses), net of tax, are retained in other comprehensive income, and the carrying value of the held-to-maturity securities are amortized over the life of the securities in a manner consistent with the amortization of a premium or discount. Our decision to re-designate the securities was based on our ability and intent to hold these securities to maturity.

Non-Marketable and Other Securities

Non-marketable and other securities include investments in venture capital and private equity funds, debt funds, direct equity investments in companies and low income housing tax credit funds. A majority of these investments are managed through our SVB Capital funds business in funds of funds and direct venture funds. Our accounting for investments in non-marketable and other securities depends on several factors, including the level of ownership, power to control and the legal structure of the subsidiary making the investment. As further described below, we base our accounting for such securities on: (i) fair value accounting, (ii) equity method accounting, (iii) cost method accounting, and (iv) the proportional amortization method which is used only for low income housing tax credit funds.

Fair Value Accounting

Our managed funds are investment companies under the AICPA Audit and Accounting Guide for Investment Companies (codified in ASC 946) and accordingly, these funds report their investments at estimated fair value, with unrealized gains and losses resulting from changes in fair value reflected as investment gains or losses in our consolidated statements of income. Our non-marketable and other securities recorded pursuant to fair value accounting consist of our investments through the following funds:


•	Funds of funds; which make investments in venture capital and private equity funds;


•	Direct venture funds; which make equity investments in privately held companies.

A summary of our ownership interests in the investments held under fair value accounting as of December 31, 2015 is presented in the following table:



Limited partnership	Company Direct and Indirect Ownership in Limited Partnership
Managed funds of funds
SVB Strategic Investors Fund, LP	12.6	%
SVB Capital Preferred Return Fund, LP	20.0
SVB Capital—NT Growth Partners, LP	33.0
Other private equity fund	58.2
Managed direct venture funds
Silicon Valley BancVentures, LP	10.7

The general partner interests of these funds are controlled, and in some cases, owned by SVB Financial. The limited partners of these funds do not have substantive participating or kick-out rights. Therefore, these funds are consolidated and any gains or losses resulting from changes in the estimated fair value of the investments are recorded as investment gains or losses in our consolidated net income.

Under fair value accounting, investments are carried at their estimated fair value based on financial information obtained as the general partner of the fund or obtained from the funds' respective general partner. For direct private company investments, valuations are based upon consideration of a range of factors including, but not limited to, the price at which the investment was acquired, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, exit strategies, and financing transactions subsequent to the acquisition of the investment. For direct equity investments in public companies, valuations are based on quoted market prices less a discount if the securities are subject to certain sales restrictions. Sales restriction discounts generally range from 10% to 20% depending on the duration of the sale restrictions which typically range from 3 to 6 months. The valuation of non-marketable securities in shares of private company capital stock and the valuation of other securities in shares of public company stock with certain sales restrictions is subject to significant judgment. The inherent uncertainty in the process of valuing securities for which a ready market does not exist may cause our estimated values of these securities to differ significantly from the values that would have been derived had a ready market for the securities existed, and those differences could be material.

For our fund investments, we utilize the net asset value as obtained from the general partners of the fund investments as the funds do not have a readily determinable fair value. The general partners of our fund investments prepare their financial statements using guidance consistent with fair value accounting. We account for differences between our measurement date and the date of the fund investment's net asset value by using the most recent available financial information from the investee general partner, for example September 30th, for our December 31st consolidated financial statements. We adjust the value of our investments for any contributions paid, distributions received from the investment, and known significant fund transactions or market events about which we are aware through information provided by the fund managers or from publicly available transaction data during the reporting period.

Gains or losses resulting from changes in the estimated fair value of the investments and from distributions received are recorded as gains on investment securities, net, a component of noninterest income. The portion of any investment gains or losses attributable to the limited partners is reflected as net income attributable to noncontrolling interests and adjusts our net income to reflect its percentage ownership.

Equity Method

Our equity method non-marketable securities consist of investments in venture capital and private equity funds, privately-held companies, debt funds, and joint ventures. Our equity method non-marketable securities and related accounting policies are described as follows:


•	Equity securities, such as preferred or common stock in privately-held companies in which we hold a voting interest of at least 20 percent, or in which we have the ability to exercise significant influence over the investees' operating and financial policies through board involvement or other influence, are accounted for under the equity method.


•	Investments in limited partnerships in which we hold voting interests of more than 5 percent, or in which we have the ability to exercise significant influence over the partnerships' operating and financial policies, are accounted for using the equity method.


•	Our China joint venture partnership, for which we have 50.0 percent ownership, is accounted for under the equity method.

We recognize our proportionate share of the results of operations of these equity method investees in our results of operations, based on the most current financial information available from the investee. We review our investments accounted for under the equity method at least quarterly for possible other-than-temporary impairment. Our review typically includes an analysis of facts and circumstances for each investment, the expectations of the investment's future cash flows and capital needs, variability of its business and the company's exit strategy. For our fund investments, we utilize the net asset value per share as provided by the general partners of the fund investments. We account for differences between our measurement date and the date of the fund investment's net asset value by using the most recent available financial information from the investee general partner, for example September 30^th, for our December 31^st consolidated financial statements. We adjust the value of our investments for any contributions paid, distributions received from the investment, and known significant fund transactions or market events about which we are aware through information provided by the fund managers or from publicly available transaction data during the reporting period.

We reduce our investment value when we consider declines in value to be other-than-temporary and recognize the estimated loss as a loss on investment securities, a component of noninterest income.

Cost Method

Our cost method non-marketable securities and related accounting policies are described as follows:


•	Equity securities, such as preferred or common stock in privately-held companies in which we hold an ownership interest in which we do not have the ability to exercise significant influence over the investees' operating and financial policies, are accounted for under the cost method.


•	Investments in limited partnerships in which we hold voting interests of less than 5 percent and in which we do not have the ability to exercise significant influence over the partnerships' operating and financial policies, are accounted for under the cost method. These non-marketable securities include investments in venture capital and private equity funds.

We record these investments at cost and recognize distributions or returns received from net accumulated earnings of the investee since the date of acquisition as income. Our share of net accumulated earnings of the investee after the date of investment are recognized in consolidated net income only to the extent distributed by the investee. Distributions or returns received in excess of accumulated earnings are considered a return of investment and are recorded as reductions in the cost basis of the investment.

We review our investments accounted for under the cost method at least quarterly for possible other-than-temporary impairment. Our review typically includes an analysis of facts and circumstances of each investment, the expectations of the investment's future cash flows and capital needs, variability of its business and the company's exit strategy. To help determine impairment, if any, for our fund investments, we utilize the net asset value per share as provided by the general partners of the fund investments.

We reduce our investment value when we consider declines in value to be other-than-temporary and recognize the estimated loss as a loss on investment securities, a component of noninterest income.

Gains or losses on cost method investment securities that result from a portfolio company being acquired by a publicly traded company are determined using the fair value of the consideration received when the acquisition occurs. The resulting gains or losses are recognized in consolidated net income in the period of acquisition.

Proportional Amortization Method

In order to fulfill our responsibilities under the Community Reinvestment Act, we invest as a limited partner in low income housing partnerships that operate qualified affordable housing projects and generate tax benefits, including federal low income housing tax credits, for investors. The partnerships are deemed to be VIEs because they do not have sufficient equity investment at risk and are structured with non-substantive voting rights. We are not the primary beneficiary of the VIEs and do not consolidate them. Our investments in low income housing partnerships are recorded in non-marketable and other securities within our investment securities portfolio on the consolidated balance sheet. As a practical expedient, we amortize the investment in proportion to the allocated tax benefits under the proportional amortization method of accounting and present such benefits net of investment amortization in income tax expense.

Loans

Loans are reported at the principal amount outstanding, net of unearned loan fees. Unearned loan fees reflect unamortized deferred loan origination and commitment fees net of unamortized deferred loan origination costs. In addition to cash loan fees, we often obtain equity warrant assets that give us an option to purchase a position in a client company's stock in consideration for providing credit facilities. The grant date fair values of these equity warrant assets are deemed to be loan fees and are deferred as unearned income and recognized as an adjustment of loan yield through loan interest income. The net amount of unearned loan fees is amortized into loan interest income over the contractual terms of the underlying loans and commitments using the constant effective yield method, adjusted for actual loan prepayment experience, or the straight-line method, as applicable.

Allowance for Loan Losses

The allowance for loan losses considers credit risk and is established through a provision for loan losses charged to expense. Our allowance for loan losses is established for estimated loan losses that are probable but not yet realized. Our evaluation process is designed to determine that the allowance for loan losses is appropriate at the balance sheet date. The process of estimating loan losses is inherently imprecise.

We maintain a systematic process for the evaluation of individual loans and pools of loans for inherent risk of loan losses. At the time of approval of a new loan, a Credit risk rating is assigned a Credit Risk Rating and industry niche. Credit Risk Ratings are assigned on a scale of 1 to 10, with 1 representing loans with a low risk of nonpayment, 9 representing loans with the highest risk of nonpayment, and 10 representing loans which have been charged-off. The credit risk ratings for each loan are monitored and updated on an ongoing basis. This Credit Risk Rating process includes, but is not limited to, consideration of such factors as payment status, the financial condition and operating performance of the borrower, borrower compliance with loan covenants, underlying collateral values and performance trends, the degree of access to additional capital, the presence of credit enhancements such as third party guarantees (where applicable), the degree to which the borrower is sensitive to external factors, the depth and experience of the borrower's management team, potential loan concentrations, and general economic conditions. Our policies require a committee of senior management to review, at least quarterly, credit relationships with a credit risk rating of 5 through 9 that exceed specific dollar values. Our review process evaluates the appropriateness of the credit risk rating and allocation of the allowance for loan losses, as well as other account management functions. The allowance for loan losses is determined based on a qualitative analysis and a formula allocation for similarly risk-rated loans by portfolio segment and individually for impaired loans. The formula allocation provides the average loan loss experience for each portfolio segment, which considers our quarterly historical loss experience since the year 2000, both by risk-rating category and client industry sector. The resulting loan loss factors for each risk-rating category and client industry sector are ultimately applied to the respective period-end client loan balances for each corresponding risk-rating category by client industry sector to provide an estimation of the allowance for loan losses. The probable loan loss experience for any one year period of time is reasonably expected to be greater or less than the average as determined by the loss factors. As such, management applies a qualitative allocation to the results of the aforementioned model to ascertain the total allowance for loan losses. This qualitative allocation is based on management's assessment of the risks that may lead to a future loan loss experience different from our historical loan loss experience. Based on management's prediction or estimate of changing risks in the lending environment, the qualitative allocation may vary significantly from period to period and includes, but is not limited to, consideration of the following factors:


•	Changes in lending policies and procedures, including underwriting standards and collections, and charge-off and recovery practices;


•	Changes in national and local economic business conditions, including the market and economic condition of our clients' industry sectors;


•	Changes in the nature of our loan portfolio;


•	Changes in experience, ability, and depth of lending management and staff;


•	Changes in the trend of the volume and severity of past due and classified loans;


•	Changes in the trend of the volume of nonaccrual loans, troubled debt restructurings, and other loan modifications;


•	Reserve floor for portfolio segments that would not draw a minimum reserve based on the lack of historical loan loss experience;


•	Reserve for large funded loan exposure; and


•	Other factors as determined by management from time to time.

While the evaluation process of our allowance for loan losses uses historical and other objective information, the classification of loans and the establishment of the allowance for loan losses rely, to a great extent, on the judgment and experience of our management.

Reserve for Unfunded Credit Commitments

We record a liability for probable and estimable losses associated with our unfunded credit commitments being funded and subsequently being charged off. Each quarter, every unfunded client credit commitment is allocated to a credit risk-rating in accordance with each client's credit risk rating. We use the historical loan loss factors described under our allowance for loan losses to calculate the loan loss experience if unfunded credit commitments are funded. Separately, we use historical trends to calculate a probability of an unfunded credit commitment being funded. We apply the loan funding probability factor to risk-factor adjusted unfunded credit commitments by credit risk-rating to derive the reserve for unfunded credit commitments, similar to funded loans. The reserve for unfunded credit commitments also includes certain qualitative allocations as deemed appropriate by our management. We include the reserve for unfunded credit commitments in other liabilities and the related provision in other expenses.

Uncollectible Loans and Write-offs

Our charge-off policy applies to all loans, regardless of portfolio segment. Commercial loans are considered for a full or partial charge-off in the event that principal or interest is over 180 days past due and the loan lacks sufficient collateral and it is not in the process of collection, provided that a loss event has been defined and the charge-off is consistent with GAAP. Consumer loans are considered for a full or partial charge-off in the event that principal interest is over 120 days past due and the loan lacks sufficient collateral and it is not in the process of collection, provided that a loss event has been defined and the charge-off is consistent with GAAP. We also consider writing off loans in the event of any of the following circumstances: 1) the loan, or a portion of the loan is deemed uncollectible due to: a) the borrower's inability to make recurring payments, b) material changes in the borrower's financial condition, c) the expected sale of all or a portion of the borrower's business is insufficient to repay the loan in full, or 2) the loan has been identified for charge-off by regulatory authorities.

Troubled Debt Restructurings

A TDR arises from the modification of a loan where we have granted a concession to the borrower related to the borrower's financial difficulties that we would not have otherwise considered for economic or legal reasons. These concessions may include: (1) deferral of payment for more than an insignificant period of time that does not include sufficient offsetting borrower concessions; (2) interest rate reductions; (3) extension of the maturity date outside of ordinary course extension; (4) principal forgiveness; and or (5) reduction of accrued interest.

We use the factors in ASC 310-40, Receivables, Troubled Debt Restructurings by Creditors, to help determine when a borrower is experiencing financial difficulty, and when we have granted a concession, both of which must be present for a restructuring to meet the criteria of a TDR. If we determine that a TDR exists, we measure impairment based on the present value of expected future cash flows discounted at the loan's effective interest rate, except that as a practical expedient, we may also measure impairment based on a loan's observable market price, or the fair value of the collateral less selling costs if the loan is a collateral-dependent loan.

Impaired Loans

A loan is considered impaired when, based upon currently known information, it is deemed probable that we will be unable to collect all amounts due according to the contractual terms of the agreement. On a quarterly basis, we review our loan portfolio for impairment. Within each class of loans, we review individual loans for impairment based on credit risk ratings. 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 "Performing (Criticized)" and could be classified as a performing impaired loan.

For each loan identified as impaired, we measure the impairment based upon the present value of expected future cash flows discounted at the loan's effective interest rate. In limited circumstances, we may measure impairment based on the loan's observable market price or the fair value of the collateral less selling costs if the loan is collateral dependent. Impaired collateral dependent loans will have independent appraisals completed and accepted at least annually. The fair value of the collateral will be determined by the most recent appraisal, as adjusted to reflect a reasonable marketing period for the sale of the asset(s) and an estimate of reasonable selling expenses.

If it is determined that the value of an impaired loan is less than the recorded investment in the loan, net of previous charge-offs and payments collected, we recognize impairment through the allowance for loan losses as determined by our analysis.

Nonaccrual Loans

Loans are placed on nonaccrual status when they become 90 days past due as to principal or interest payments (unless the principal and interest are well secured and in the process of collection); or when we have determined, based upon currently known information, that the timely collection of principal or interest is not probable.

When a loan is placed on nonaccrual status, the accrued interest and fees are reversed against interest income and the loan is accounted for using the cost recovery method thereafter until qualifying for return to accrual status. Historically, loans that have been placed on nonaccrual status have remained as nonaccrual loans until the loan is either charged-off, or the principal balances have been paid off. For a loan to be returned to accrual status, all delinquent principal and interest must become current in accordance with the terms of the loan agreement and future collection of remaining principal and interest must be deemed probable. We apply a cost recovery method in which all cash received is applied to the loan principal until it has been collected. Under this approach, interest income is recognized after total cash flows received exceed the recorded investment at the date of initial nonaccrual. All of our nonaccrual loans have credit risk ratings of 8 or 9 and are classified under the nonperforming impaired category.

Standby Letters of Credit

We recognize a liability at the inception of a standby letter of credit equivalent to the premium or the fee received for such guarantee. This fee is recognized in noninterest income over the commitment period using the straight-line method.

Premises and Equipment

Premises and equipment are reported at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or the terms of the related leases, whichever is shorter. The maximum estimated useful lives by asset classification are as follows:



Leasehold improvements		Lesser of lease term or asset life
Furniture and equipment		7 years
Computer software		3-7 years
Computer hardware		3-5 years

We capitalize the costs of computer software developed or obtained for internal use, including costs related to developed software, purchased software licenses and certain implementation costs.

For property and equipment that is retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in noninterest expense in consolidated net income.

Lease Obligations

We lease all of our properties. At the inception of the lease, each property is evaluated to determine whether the lease will be accounted for as an operating or capital lease. For leases that contain rent escalations or landlord incentives, we record the total rent payable during the lease term, using the straight-line method over the term of the lease and record the difference between the minimum rents paid and the straight-line rent as lease obligations. We had no capitalized lease obligations at December 31, 2015 and 2014.

Fair Value Measurements

Our available-for-sale securities, derivative instruments and certain marketable, non-marketable and other securities are financial instruments recorded at fair value on a recurring basis. We make estimates regarding valuation of assets and liabilities measured at fair value in preparing our consolidated financial statements.

Fair Value Measurement-Definition and Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (the “exit price”) in an orderly transaction between market participants at the measurement date. There is a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable and the significance of those inputs in the fair value measurement. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect our estimates about market data and views of market participants. The three levels for measuring fair value are based on the reliability of inputs and are as follows:

Level 1

Fair value measurements based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. Assets utilizing Level 1 inputs include U.S. Treasury securities, exchange-traded equity securities and certain marketable securities accounted for under fair value accounting.

Level 2

Fair value measurements based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly. Valuations for the available-for-sale securities are provided by independent external pricing service providers who have experience in valuing these securities and by comparison to and/or average of quoted market prices obtained from independent external brokers. We perform a monthly analysis on the values received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The procedures include, but are not limited to, initial and ongoing review of third party pricing methodologies, review of pricing trends and monitoring of trading volumes. Additional corroboration, such as obtaining a non-binding price from a broker, may be obtained depending on the frequency of trades of the security and the level of liquidity or depth of the market. We ensure prices received from independent brokers represent a reasonable estimate of the fair value through the use of observable market inputs including comparable trades, yield curve, spreads and, when available, market indices. As a result of this analysis, if the Company determines that there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly. Below is a summary of the significant inputs used for each class of Level 2 assets and liabilities:

U.S. agency debentures: Fair value measurements of U.S. agency debentures are based on the characteristics specific to bonds held, such as issuer name, issuance date, coupon rate, maturity date and any applicable issuer call option features. Valuations are based on market spreads relative to similar term benchmark market interest rates, generally U.S. Treasury securities.

Agency-issued mortgage-backed securities: Agency-issued mortgage-backed securities are pools of individual conventional mortgage loans underwritten to U.S. agency standards with similar coupon rates, tenor, and other attributes such as geographic location, loan size and origination vintage. Fair value measurements of these securities are based on observable price adjustments relative to benchmark market interest rates taking into consideration estimated loan prepayment speeds.

Agency-issued collateralized mortgage obligations: Agency-issued collateralized mortgage obligations are structured into classes or tranches with defined cash flow characteristics and are collateralized by U.S. agency-issued mortgage pass-through securities. Fair value measurements of these securities incorporate similar characteristics of mortgage pass-through securities such as coupon rate, tenor, geographic location, loan size and origination vintage, in addition to incorporating the effect of estimated prepayment speeds on the cash flow structure of the class or tranche. These measurements incorporate observable market spreads over an estimated average life after considering the inputs listed above.

Agency-issued commercial mortgage-backed securities: Fair value measurements of these securities are based on spreads to benchmark market interest rates (usually U.S. Treasury rates or rates observable in the swaps market), prepayment speeds, loan default rate assumptions and loan loss severity assumptions on underlying loans.

Municipal bonds and notes: Bonds issued by municipal governments generally have stated coupon rates, final maturity dates and are subject to being called ahead of the final maturity date at the option of the issuer. Fair value measurements of these securities are priced based on spreads to other municipal benchmark bonds with similar characteristics; or, relative to market rates on U.S. Treasury bonds of similar maturity.

Interest rate derivative assets and liabilities: Fair value measurements of interest rate derivatives are priced considering the coupon rate of the fixed leg of the contract and the variable coupon on the floating leg of the contract. Valuation is based on both spot and forward rates on the swap yield curve and the credit worthiness of the contract counterparty.

Foreign exchange forward and option contract assets and liabilities: Fair value measurements of these assets and liabilities are priced based on spot and forward foreign currency rates and option volatility assumptions.

Equity warrant assets (public portfolio): Fair value measurements of equity warrant assets of publicly-traded portfolio companies are valued based on the Black-Scholes option pricing model. The model uses the price of publicly-traded companies (underlying stock price), stated strike prices, warrant expiration dates, the risk-free interest rate and market-observable option volatility assumptions.

Level 3

The fair value measurement is derived from valuation techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions we believe market participants would use in pricing the asset. Below is a summary of the valuation techniques used for each class of Level 3 assets:

Other venture capital investments: Fair value measurements are based on consideration of a range of factors including, but not limited to, the price at which the investment was acquired, the term and nature of the investment, local market conditions, values for comparable securities, and as it relates to the private company, the current and projected operating performance, exit strategies, and financing transactions subsequent to the acquisition of the investment. The significant unobservable inputs used in the fair value measurement include the information about each portfolio company, including actual and forecasted results, cash position, recent or planned transactions and market comparable companies. Significant changes to any one of these inputs in isolation could result in a significant change in the fair value measurement, however, we generally consider all factors available through ongoing communication with the portfolio companies and venture capital fund managers to determine whether there are changes to the portfolio company or the environment that indicate a change in the fair value measurement.

Other securities: Fair value measurements of equity securities of public companies are priced based on quoted market prices less a discount if the securities are subject to certain sales restrictions. Certain sales restriction discounts generally range from 10% to 20% depending on the duration of the sale restrictions which typically range from 3 to 6 months.

Equity warrant assets (public portfolio): Fair value measurements of equity warrant assets of publicly-traded portfolio companies are valued based on the Black-Scholes option pricing model. The model uses the price of publicly-traded companies (underlying stock price), stated strike prices, warrant expiration dates, the risk-free interest rate and market-observable option volatility assumptions. Modeled asset values are further adjusted by applying a discount of up to 20% for certain warrants that have certain sales restrictions or other features that indicate a discount to fair value is warranted. As sale restrictions are lifted, discounts are adjusted downward to zero once all restrictions expire or are removed.

Equity warrant assets (private portfolio): Fair value measurements of equity warrant assets of private portfolio companies are priced based on a modified Black-Scholes option pricing model to estimate the asset value by using stated strike prices, option expiration dates, risk-free interest rates and option volatility assumptions. Option volatility assumptions used in the modified Black-Scholes model are based on public market indices whose members operate in similar industries as companies in our private company portfolio. Option expiration dates are modified to account for estimates to actual life relative to stated expiration. Overall model asset values are further adjusted for a general lack of liquidity due to the private nature of the associated underlying company. There is a direct correlation between changes in the volatility and remaining life assumptions in isolation and the fair value measurement while there is an inverse correlation between changes in the liquidity discount assumption and the fair value measurement.

It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. When available, we use quoted market prices to measure fair value. If market prices are not available, fair value measurement is based upon valuation techniques that use primarily market-based or independently-sourced market parameters, including interest rate yield curves, prepayment speeds, option volatilities and currency rates. Substantially all of our financial instruments use the foregoing methodologies, and are categorized as a Level 1 or Level 2 measurement in the fair value hierarchy. However, in certain cases, when market observable inputs for our valuation techniques may not be readily available, we are required to make judgments about assumptions we believe market participants would use in estimating the fair value of the financial instrument, and based on the significance of those judgments, the measurement may be determined to be a Level 3 fair value measurement.

The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market parameters. For financial instruments that trade actively and have quoted market prices or observable market parameters, there is minimal subjectivity involved in measuring fair value. When observable market prices and parameters are not fully available, management judgment is necessary to estimate fair value. For inactive markets, there is little information, if any, to evaluate if individual transactions are orderly. Accordingly, we are required to estimate, based upon all available facts and circumstances, the degree to which orderly transactions are occurring and provide more weighting to price quotes that are based upon orderly transactions. In addition, changes in the market conditions may reduce the availability of quoted prices or observable data. For example, reduced liquidity in the capital markets or changes in secondary market activities could result in observable market inputs becoming unavailable. Therefore, when market data is not available, we use valuation techniques requiring more management judgment to estimate the appropriate fair value measurement. Accordingly, the degree of judgment exercised by management in determining fair value is greater for financial assets and liabilities categorized as Level 3.

Fee-based Services Revenue Recognition

Letters of Credit and Standby Letters of Credit Fee Income

Fees generated from letters of credit and standby letters of credit are deferred as a component of other liabilities and recognized in noninterest income over the commitment period using the straight-line method, based on the likelihood that the commitment being drawn down will be remote.

Client Investment Fees

Client investment fees include fees earned from Rule 12(b)-1 fees, revenue sharing and from customer transactional based fees. Rule 12(b)-1 fees and revenue sharing are recognized as earned based on client funds that are invested in the period. Transactional based fees are earned and recognized on fixed income securities when the transaction is executed on the clients' behalf.

Foreign Exchange Fees

Foreign exchange fees represent the income differential between purchases and sales of foreign currency on behalf of our clients and are recognized as earned.

Lending Related Fees

Unused commitment fees, minimum finance fees and unused line fees are recognized as earned on a monthly and quarterly basis. Fees that qualify for syndication treatment are recognized at the completion of the syndicated loan deal for which the fees were received.

Other Fee Income

Credit card fees, net of rewards expense, and deposit service charge fee income are recognized as earned on a monthly basis.

Other Service Revenue

Other service revenue primarily includes revenue from valuation services. We recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) we have performed the service, provided we have no other remaining obligations to the customer, (iii) the fee is fixed or determinable and, (iv) collectability is probable.

Fund Management Fees and Carried Interest

Fund management fees are comprised of fees charged directly to our managed funds of funds and direct venture funds. Fund management fees are based upon the contractual terms of the limited partnership agreements and are recognized as earned over the specified contract period, which is generally equal to the life of the individual fund. Fund management fees are recorded as a component of other noninterest income.

Carried interest is comprised of preferential allocations of profits recognizable when the return on assets of our individual managed fund of funds and direct venture funds exceeds certain performance targets and is payable to us, as the general partners of the managed funds. The carried interest we earn is often shared with employees, who are also members of the general partner entities. We record carried interest on a quarterly basis by measuring fund performance to date versus the performance target. For our unconsolidated managed funds, carried interest is recorded as gains on investment securities, net. For our consolidated managed funds, it is recorded as a component of net income attributable to noncontrolling interests. Carried interest allocated to others is recorded as a component of net income attributable to noncontrolling interests.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Our federal, state and foreign income tax provisions are based upon taxes payable for the current year, current year changes in deferred taxes related to temporary differences between the tax basis and financial statement balances of assets and liabilities, and a reserve for uncertain tax positions. Deferred tax assets and liabilities are included in the consolidated financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. We file a consolidated federal income tax return, and consolidated, combined, or separate state income tax returns as appropriate. Our foreign incorporated subsidiaries file tax returns in the applicable foreign jurisdictions. We record interest and penalties related to unrecognized tax benefits in other noninterest expense, a component of consolidated net income.

Share-Based Compensation

For all stock-based awards granted, stock-based compensation expense is amortized on a straight-line basis over the requisite service period, including consideration of vesting conditions and anticipated forfeitures. The fair value of stock options are measured using the Black-Scholes option-pricing model and the fair value for restricted stock awards and restricted stock units are based on the quoted price of our common stock on the date of grant.

Earnings Per Share

Basic earnings per common share is computed using the weighted average number of common stock shares outstanding during the period. Diluted earnings per common share is computed using the weighted average number of common stock shares and potential common shares outstanding during the period. Potential common shares consist of stock options, ESPP shares and restricted stock units. Common stock equivalent shares are excluded from the computation if the effect is antidilutive.

Derivative Financial Instruments

All derivative instruments are recorded on the balance sheet at fair value. The accounting for changes in fair value of a derivative financial instrument depends on whether the derivative financial instrument is designated and qualifies as part of a hedging relationship and, if so, the nature of the hedging activity. Changes in fair value are recognized through earnings for derivatives that do not qualify for hedge accounting treatment, or that have not been designated in a hedging relationship.

Fair Value Hedges

For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the hedging instrument is recorded in the statement of income in the same line item as the hedged item and is intended to offset the loss or gain on the hedged item attributable to the hedged risk. Any difference that does arise would be the result of hedge ineffectiveness, and impacts earnings.

Equity Warrant Assets

In connection with negotiated credit facilities and certain other services, we may obtain equity warrant assets giving us the right to acquire stock in primarily private, venture-backed companies in the technology and life science/healthcare industries. We hold these assets for prospective investment gains. We do not use them to hedge any economic risks nor do we use other derivative instruments to hedge economic risks stemming from equity warrant assets.

We account for equity warrant assets in certain private and public client companies as derivatives when they contain net settlement terms and other qualifying criteria under ASC 815, Derivatives and Hedging. In general, equity warrant assets entitle us to buy a specific number of shares of stock at a specific price within a specific time period. Certain equity warrant assets contain contingent provisions, which adjust the underlying number of shares or purchase price upon the occurrence of certain future events. Our warrant agreements typically contain net share settlement provisions, which permit us to receive at exercise a share count equal to the intrinsic value of the warrant divided by the share price (otherwise known as a “cashless” exercise). These equity warrant assets are recorded at fair value and are classified as derivative assets, a component of other assets, on our consolidated balance sheet at the time they are obtained.

The grant date fair values of equity warrant assets received in connection with the issuance of a credit facility are deemed to be loan fees and recognized as an adjustment of loan yield through loan interest income. Similar to other loan fees, the yield adjustment related to grant date fair value of warrants is recognized over the life of that credit facility.

Any changes in fair value from the grant date fair value of equity warrant assets will be recognized as increases or decreases to other assets on our balance sheet and as net gains or losses on derivative investments, in noninterest income, a component of consolidated net income. When a portfolio company completes an IPO on a publicly reported market or is acquired, we may exercise these equity warrant assets for shares or cash.

In the event of an exercise for shares, the basis or value in the securities is reclassified from other assets to investment securities on the balance sheet on the latter of the exercise date or corporate action date. The shares in public companies are classified as available-for-sale securities (provided they do not have a significant restriction from sale). Changes in fair value of securities designated as available-for-sale, after applicable taxes, are reported in accumulated other comprehensive income, which is a separate component of SVBFG stockholders' equity. The shares in private companies are classified as non-marketable securities. We, typically, account for these securities at cost and only record adjustments to the value at the time of exit or liquidation though gains (losses) on investments securities, net, which is a component of noninterest income.

The fair value of the equity warrant assets portfolio is a critical accounting estimate and is reviewed quarterly. We value our equity warrant assets using a modified Black-Scholes option pricing model, which incorporates the following significant inputs:


•	An underlying asset value, which is estimated based on current information available, including any information regarding subsequent rounds of funding.


•	Stated strike price, which can be adjusted for certain warrants upon the occurrence of subsequent funding rounds or other future events.

•

Price volatility or the amount of uncertainty or risk about the magnitude of the changes in the warrant price. The volatility assumption is based on historical price volatility of publicly traded companies within indices similar in nature to the underlying client companies issuing the warrant. The actual volatility input is based on the mean and median volatility for an individual public company within an index for the past 16 quarters, from which an average volatility was derived.

•

Actual data on cancellations and exercises of our warrants are utilized as the basis for determining the expected remaining life of the warrants in each financial reporting period. Warrants may be exercised in the event of acquisitions, mergers or IPOs, and cancelled due to events such as bankruptcies, restructuring activities or additional financings. These events cause the expected remaining life assumption to be shorter than the contractual term of the warrants.


•	The risk-free interest rate is derived from the Treasury yield curve and is calculated based on a weighted average of the risk-free interest rates that correspond closest to the expected remaining life of the warrant.


•	Other adjustments, including a marketability discount, are estimated based on management's judgment about the general industry environment.

Foreign Exchange Forwards and Foreign Currency Option Contracts

We enter into foreign exchange forward contracts and foreign currency option contracts with clients involved in international activities, either as the purchaser or seller, depending upon the clients' need. We also enter into an opposite-way forward or option contract with a correspondent bank to economically hedge client contracts to mitigate the fair value risk to us from fluctuations in currency rates. Settlement, credit, and operational risks remain. We also enter into forward contracts with correspondent banks to economically hedge currency exposure risk related to certain foreign currency denominated assets and liabilities. These contracts are not designated as hedging instruments and are recorded at fair value in our consolidated balance sheets. The contracts generally have terms of one year or less, although we may have contracts extending for up to five years. Generally, we have not experienced nonperformance on these contracts, have not incurred credit losses, and anticipate performance by all counterparties to such agreements. Changes in the fair value of these contracts are recognized in consolidated net income under gains (losses) on derivative instruments, net, a component of noninterest income. Period-end gross positive fair values are recorded in other assets and gross negative fair values are recorded in other liabilities.

Interest Rate Contracts

We sell interest rate contracts to clients who wish to mitigate their interest rate exposure. We economically reduce the interest rate risk from this business by entering into opposite way contracts with correspondent banks. We do not designate any of these contracts (which are derivative instruments) as qualifying for hedge accounting. Contracts in an asset position are included in other assets and contracts in a liability position are included in other liabilities. The net change in the fair value of these derivatives is recorded through net gains on derivative instruments, in noninterest income, a component of consolidated net income.

Adoption of New Accounting Standards

In May 2015, the FASB issued a new accounting standard (ASU 2015-07, Fair Value Measurement (Topic 820)), which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The standard is required to be applied retrospectively to all periods presented. The guidance will be effective for fiscal years beginning after December 15, 2015, with early adoption permitted. We early adopted this guidance in the second quarter of 2015. The adoption of this guidance impacts our fair value disclosures and has no impact on our financial position, results of operations or stockholders' equity.

In April 2015, the FASB issued a new accounting standard (ASU 2015-03, Interest- Imputation of Interest (Subtopic 835-30), which simplifies the presentation of debt issuance costs. The guidance will be effective for annual and quarterly periods beginning on January 1, 2016, with early adoption permitted. We early adopted this guidance in the third quarter of 2015 using the retrospective method, which required the restatement of prior period results. The adoption of this guidance impacted our statement of financial position, but had no impact on our results of operations or retained earnings. We reclassified $4.8 million and $2.1 million of debt issuance costs from other assets to a direct deduction from the carrying amounts of long-term debt for the periods ended December 31, 2015, and December 31, 2014, respectively.

In February 2015, the FASB issued a new accounting standard, ASU 2015-02, which amends the consolidation requirement for certain legal entities. As outlined above in "Principles of Consolidation and Presentation", we early adopted this guidance in the second quarter of 2015 using the modified retrospective method, which results in an effective date of adoption of January 1, 2015 and did not require the restatement of prior period results. The adoption of this guidance impacted our statement of financial position and results of operations, but had no impact on retained earnings, SVBFG stockholders' equity or net income as investments that were consolidated in previous reporting periods are now deconsolidated and no new investments were consolidated. Refer to Note 5—”Variable Interest Entities” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details regarding our assessment of the adoption of this guidance.

In April 2014, the FASB issued a new accounting standard (ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity), which changes the criteria for reporting discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Additionally, the new guidance requires expanded disclosures about the assets, liabilities, income, and expenses of discontinued operations and requires disclosures of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in this update are effective for fiscal years beginning after December, 15, 2014, with early adoption permitted only for disposals or classifications as held for sale that have not been previously reported. The Company adopted this ASU in the fourth quarter of 2014. The adoption of this ASU modified the disclosure requirements for discontinued operations and did not have any impact on our financial position, results of operations or stockholders’ equity.

In January 2014, the FASB issued a new accounting standard (ASU 2014-01, Investments - Equity Method and Joint Ventures (Topic 323), Accounting for Investments in Qualified Affordable Housing Projects), which is effective for us for interim and annual reporting periods beginning after December 15, 2014. The standard is required to be applied retrospectively, with an adjustment to retained earnings in the earliest period presented. The ASU is applicable to our portfolio of low income housing tax credit ("LIHTC") partnership interests. We adopted this guidance in the first quarter of 2015. For prior periods, pursuant to ASU 2014-01, (i) amortization expense related to our low income housing tax credits was reclassified from Other noninterest expense to Income tax expense, (ii) additional amortization, net of the associated tax benefits, was recognized in Income tax expense as a result of our adoption of the proportional amortization method and (iii) net deferred tax assets, related to our low income housing tax investments, were written-off. The cumulative effect to retained earnings as of January 1, 2015 of adopting this guidance was a reduction of $4.7 million, inclusive of a $3.3 million reduction to retained earnings as of January 1, 2013. Our previously reported net income and diluted earnings per share for the years ended December 31, 2014 and 2013 were not materially impacted by the adoption of ASU 2014-01.

In June 2013, the FASB issued a new accounting standard (ASU No. 2013-08, Amendments to the Scope, Measurement and Disclosure Requirement for Investment Companies), which modified the guidance in ASC 946 for determining whether an entity is an investment company, as well as the measurement and disclosure requirements for investment companies. The ASU does not change current accounting where a noninvestment company parent retains the specialized accounting applied by an investment company subsidiary in consolidation. ASU 2013-08 was effective on a prospective basis for the interim and annual reporting periods beginning after December 15, 2013, and was therefore adopted in the first quarter of 2014. This standard did not have any impact on our financial position, results of operations or stockholders' equity.

In July 2013, the FASB issued a new accounting standard (ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists), which requires an unrecognized tax benefit to be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward that the entity intends to use and is available for settlement at the reporting date. ASU 2013-11 was effective for, and adopted by the Company, in the first quarter of 2014. The adoption of ASU 2013-11 did not have a material impact on the Company’s consolidated financial position, results of operations or stockholders' equity.

Recent Accounting Pronouncements

In May 2014, the FASB issued a new accounting standard (ASU 2014-09, Revenue from Contracts with Customers (Topic 606)), which provides revenue recognition guidance that is intended to create greater consistency with respect to how and when revenue from contracts with customers is shown in the income statement. This guidance will be effective on a retrospective basis beginning on January 1, 2018. We do not expect the adoption of this guidance to have a material impact on our financial position, results of operations or stockholders' equity.

In April 2015, the FASB issued a new accounting standard (ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)). This guidance will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will be effective on a January 1, 2016, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our financial position, results of operations or stockholders' equity.

In January 2016, the FASB issued a new accounting standard (ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825)), which will significantly change the income statement impact of equity investments, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. This guidance will be effective on January 1, 2018, on a prospective basis with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are currently evaluating the impact this guidance will have on our consolidated financial statements, as well as the expected timing and method of adoption.

Reclassifications

Certain prior period amounts, including amounts related to the adoption of ASU 2014-01, ASU 2015-03 and ASU 2015-07, have been reclassified to conform to current period presentations.

Stockholders' Equity and EPS

12 Months Ended

Dec. 31, 2015

Equity and Earnings Per Share [Abstract]

Stockholders' Equity and EPS

Stockholders’ Equity and EPS

Common Stock

In the second quarter of 2014, to support the continued growth of our balance sheet, we completed a registered public offering of 4,485,000 shares of our common stock at an offering price of $101.00 per share. We received net proceeds of $434.9 million after deducting underwriting discounts and commissions.

Accumulated Other Comprehensive Income

The following table summarizes the items reclassified out of accumulated other comprehensive income into the Consolidated Statements of Income for 2015, 2014, and 2013:



		Year ended December 31,
(Dollars in thousands)	Income Statement Location	2015			2014			2013
Reclassification adjustment for (gains) losses included in net income	Gains on investment securities, net	$	(1,201	)	$	18,598		$	(538	)
Related tax expense (benefit)	Income tax expense	481			(7,510		)	218
Total reclassification adjustment for (gains) losses included in net income, net of tax		$	(720	)	$	11,088		$	(320	)

EPS

Basic EPS is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock option and restricted stock unit awards outstanding under our equity incentive plan and our ESPP. Potentially dilutive common shares are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive. The following is a reconciliation of basic EPS to diluted EPS for 2015, 2014 and 2013:



	Year ended December 31,
(Dollars and shares in thousands, except per share amounts)	2015		2014		2013
Numerator:
Net income available to common stockholders	$	343,904	$	263,870	$	214,517
Denominator:
Weighted average common shares outstanding-basic	51,318		48,931		45,309
Weighted average effect of dilutive securities:
Stock options and ESPP	387		485		431
Restricted stock units	211		246		204
Denominator for diluted calculation	51,916		49,662		45,944
Earnings per common share:
Basic	$	6.70	$	5.39	$	4.73
Diluted	$	6.62	$	5.31	$	4.67

The following table summarizes the weighted average common shares excluded from the diluted EPS calculation as they were deemed to be antidilutive for 2015, 2014 and 2013:



	Year ended December 31,
(Shares in thousands)	2015	2014	2013
Stock options	185	161	261
Restricted stock units	—	—	105
Total	185	161	366

Share-Based Compensation

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-based compensation expense was recorded net of estimated forfeitures for 2015, 2014 and 2013, such that expense was recorded only for those share-based awards that are expected to vest. In 2015, 2014 and 2013, we recorded share-based compensation and related benefits as follows:



	Year ended December 31,
(Dollars in thousands)	2015			2014			2013
Share-based compensation expense	$	32,239		$	29,545		$	25,413
Income tax benefit related to share-based compensation expense	(11,395		)	(9,923		)	(7,989		)
Capitalized compensation costs	2,226			2,048			2,809

Equity Incentive Plan

On May 11, 2006, our stockholders approved the 2006 Equity Incentive Plan (the “2006 Incentive Plan”). Our previous 1997 Equity Incentive Plan expired in December 2006. The 2006 Incentive Plan provides for the grant of various types of incentive awards, of which the following have been granted: (i) stock options; (ii) restricted stock awards; (iii) restricted stock units; and (iv) other cash or stock settled equity awards.

Subject to the provisions of Section 16 of the 2006 Incentive Plan, the maximum aggregate number of shares that may be awarded and sold thereunder is 9,528,505.

Restricted stock awards and restricted stock units will be counted against the available-for-issuance limits of the 2006 Incentive Plan as two shares for every one share awarded. Further, if shares acquired under any such award are forfeited or otherwise canceled and would otherwise return to the 2006 Incentive Plan, two times the number of such forfeited or repurchased shares will return to the 2006 Incentive Plan and will again become available for issuance.

Eligible participants in the 2006 Incentive Plan include directors, employees, and consultants. Options granted under the 2006 Incentive Plan expire seven years after the grant date. Options generally vest annually over four years, from the grant date based on continued employment or other service. Restricted stock awards and units also generally vest annually over four years and require continued employment or other service through the vesting period. Performance-based restricted stock units generally vest upon meeting certain performance-based objectives and, typically the passage of time and require continued employment or other service through the vesting period. The vesting period for restricted stock units cannot be less than three years unless they are subject to certain performance-based objectives, in which case the vesting period cannot be less than 12 months.

Employee Stock Purchase Plan

We maintain the 1999 ESPP under which participating employees may annually contribute up to 10 percent of their gross compensation (not to exceed $25,000) to purchase shares of our common stock at 85 percent of its fair market value at either the beginning or end of each six-month offering period, whichever price is less. To be eligible to participate in the ESPP, an employee must, among other requirements, be employed by the Company on both the date of offering and date of purchase, and be employed customarily for at least 20 hours per week and at least five months per calendar year. We issued 140,471 shares and received $13.9 million in cash under the ESPP in 2015. At December 31, 2015, a total of 425,728 shares of our common stock were still available for future issuance under the ESPP.

Unrecognized Compensation Expense

As of December 31, 2015, unrecognized share-based compensation expense was as follows:



(Dollars in thousands)	Unrecognized Expense		Average Expected Recognition Period - in Years
Stock options	$	11,194	2.30
Restricted stock units	37,903		2.53
Total unrecognized share-based compensation expense	$	49,097

Valuation Assumptions

The fair values of share-based awards for employee stock options and employee stock purchases made under our ESPP were estimated using the Black-Scholes option pricing model. The fair values of restricted stock units were based on our closing stock price on the date of grant. The following weighted average assumptions and fair values were used for our employee stock options and restricted stock units:



Equity Incentive Plan Awards	2015			2014			2013
Weighted average expected term of options - in years	4.7			4.6			4.7
Weighted average expected volatility of the Company's underlying common stock	31.3		%	35.9		%	44.6		%
Risk-free interest rate	1.49			1.72			0.70
Expected dividend yield	—			—			—
Weighted average grant date fair value - stock options	$	37.86		$	35.65		$	27.28
Weighted average grant date fair value - restricted stock units	129.23			107.76			71.57

The following weighted average assumptions and fair values were used for our ESPP:



ESPP	2015			2014			2013
Expected term in years	0.5			0.5			0.5
Weighted average expected volatility of the Company's underlying common stock	25.9		%	23.7		%	22.3		%
Risk-free interest rate	0.12			0.08			0.11
Expected dividend yield	—			—			—
Weighted average fair value	$	29.27		$	24.00		$	15.35

The expected term is based on the implied term of the stock options using factors based on historical exercise behavior. The expected volatilities are based on a blended rate consisting of our historic volatility and our expected volatility over a five-year term which is an indicator of expected volatility and future stock price trends. For 2015, 2014 and 2013, expected volatilities for the ESPP were equal to the historical volatility for the previous six-month periods. The expected risk-free interest rates were based on the yields of U.S. Treasury securities, as reported by the Federal Reserve Bank of New York, with maturities equal to the expected terms of the employee stock options.

Share-Based Payment Award Activity

The table below provides stock option information related to the 2006 Equity Incentive Plan for the year ended December 31, 2015:



	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life - in Years	Aggregate Intrinsic Value of In-The-Money Options
Outstanding at December 31, 2014	1,394,888		$	66.03
Granted	123,561		129.20
Exercised	(357,441	)	51.52
Forfeited	(22,260	)	84.17
Expired	(1,520	)	48.76
Outstanding at December 31, 2015	1,137,228		77.12		3.81	$	48,803,591
Vested and expected to vest at December 31, 2015	1,107,168		76.33		3.77	48,309,612
Exercisable at December 31, 2015	613,873		60.86		2.80	35,630,862

The aggregate intrinsic value of outstanding options shown in the table above represents the pre-tax intrinsic value based on our closing stock price of $118.90 as of December 31, 2015. The following table summarizes information regarding stock options outstanding and exercisable as of December 31, 2015:



	Outstanding Options				Exercisable Options
Range of Exercise Prices	Shares	Weighted Average Remaining Contractual Life - in Years	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
$19.48-49.47	170,043	1.09	$	38.70	169,806	$	38.68
49.48-60.51	160,003	2.40	59.52		155,136	59.60
60.52-64.40	210,364	3.33	64.32		135,521	64.31
64.41-67.77	2,654	3.25	64.43		1,675	64.43
67.78-79.77	237,835	4.33	71.11		98,120	71.11
79.78-107.93	26,764	5.40	101.18		6,805	99.07
107.94-108.59	197,920	5.33	107.98		44,859	107.98
108.60-127.44	16,685	6.18	119.00		1,951	117.01
127.45-129.81	114,960	6.33	129.81		—	—
	1,137,228	3.81	77.12		613,873	60.86

We expect to satisfy the exercise of stock options by issuing shares registered under the 2006 Incentive Plan. All future awards of stock options and restricted stock units will be issued from the 2006 Incentive Plan. At December 31, 2015, 2,664,121 shares were available for future issuance.

The table below provides information for restricted stock units under the 2006 Equity Incentive Plan for the year ended December 31, 2015:



	Shares		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2014	614,666		$	79.92
Granted	241,548		129.23
Vested	(264,884	)	73.35
Forfeited	(19,292	)	88.51
Nonvested at December 31, 2015	572,038		103.50

The following table summarizes information regarding stock option and restricted stock activity during 2015, 2014 and 2013:



	Year ended December 31,
(Dollars in thousands)	2015		2014		2013
Total intrinsic value of stock options exercised	$	27,430	$	21,288	$	25,520
Total grant date fair value of stock options vested	21,052		20,291		18,168
Total intrinsic value of restricted stock vested	34,009		25,453		14,176
Total grant date fair value of restricted stock vested	19,428		14,935		10,940

Variable Interest Entities

12 Months Ended

Dec. 31, 2015

Investments In Variable Interest Entities [Abstract]

Variable Interest Entities

Our involvement with VIEs includes our investments in venture capital and private equity funds, debt funds, private and public portfolio companies and our investments in qualified affordable housing projects.

The following table presents the carrying amounts and classification of significant variable interests in consolidated and unconsolidated VIEs as of December 31, 2015:



(Dollars in thousands)	Consolidated VIEs		Unconsolidated VIEs (1)		Maximum Exposure to Loss in Unconsolidated VIEs
December 31, 2015:
Assets:
Cash and cash equivalents	$	11,811	$	—	$	—
Non-marketable and other securities (2)	203,714		364,450		364,450
Accrued interest receivable and other assets	494		—		—
Total assets	$	216,019	$	364,450	$	364,450
Liabilities:
Other liabilities	$	433	$	—	$	—
Accrued expenses and other liabilities (2)	—		90,978		—
Total liabilities	$	433	$	90,978	$	—

(1)

During the second quarter of 2015 we adopted ASU 2015-02, which amends the consolidation requirements for certain legal entities. We applied the accounting guidance as of the beginning of the fiscal year of adoption, January 1, 2015. Upon adoption, we deconsolidated 16 entities, which reduced our total assets and total equity (which includes total SVBFG stockholders' equity plus noncontrolling interests) by $1.1 billion and $1.2 billion, respectively, primarily as a result of the reduction of our non-marketable and other securities and noncontrolling interests, respectively. SVB Financial continues to consolidate its interest in five SVB Capital funds that meet the new consolidation criteria.


(2)	Included in our unconsolidated non-marketable and other securities portfolio are investments in qualified affordable housing projects of $154.4 million and related unfunded commitments of $91.0 million.

Non-marketable and other securities

Our non-marketable and other securities portfolio primarily represents investments in venture capital and private equity funds, debt funds, private and public portfolio companies and investments in qualified affordable housing projects. A majority of these investments are through third party funds held by SVB Financial in which we do not have controlling or significant variable interests. These investments represent our unconsolidated VIEs in the table above. Our non-marketable and other securities portfolio also includes investments from SVB Capital. SVB Capital is the venture capital investment arm of SVB Financial, which focuses primarily on funds management. The SVB Capital family of funds is comprised of direct venture funds that invest in companies and funds of funds that invest in other venture capital funds. We have a controlling and significant variable interest in five of these SVB Capital funds and consolidate these funds for financial reporting purposes.

All investments are generally non-redeemable and distributions are expected to be received through the liquidation of the underlying investments throughout the life of the investment fund. Investments may be sold or transferred subject to the notice and approval provisions of the underlying investment agreement. Subject to applicable regulatory requirements, including the Volcker Rule, we also make commitments to invest in venture capital and private equity funds, but are not obligated to fund commitments beyond our initial investment. For additional details, see Note 19—"Off-Balance Sheet Arrangements, Guarantees, and Other Commitments" of the "Notes to the Consolidated Financial Statements" under Part II, Item 8 of this report.

The Bank also has variable interests in low income housing tax credit funds that are designed to generate a return primarily through the realization of federal tax credits. These investments are typically limited partnerships in which the general partner, other than the Bank, holds the power over significant activities of the VIE. We have not consolidated these investments in accordance with the new guidelines in ASU 2015-02. For additional information on our investments in qualified affordable housing projects see Note 8—“Investment Securities" of the "Notes to the Consolidated Financial Statements" under Part II, Item 8 of this report.

As of December 31, 2015, our exposure to loss with respect to the consolidated VIEs is limited to our net assets of $215.6 million and our exposure to loss for our unconsolidated VIEs is equal to our investment in these assets of $364.5 million.

Reserves on Deposit with the Federal Reserve Bank and Federal Bank Stock

12 Months Ended

Dec. 31, 2015

Reserves on Deposit with the Federal Reserve Bank and Federal Bank Stock [Abstract]

Reserves on Deposit with the Federal Reserve Bank and Federal Bank Stock

The Bank is required to maintain reserves against customer deposits by keeping balances with the Federal Reserve. The cash balances at the Federal Reserve are classified as cash and cash equivalents. Additionally, as a member of the FHLB and FRB, we are required to hold shares of FHLB and FRB stock under the Bank's borrowing agreement. FHLB and FRB stock are recorded at cost as a component of other assets, and any cash dividends received are recorded as a component of other noninterest income.

The tables below provide information on the required reserve balances at the Federal Reserve, as well as shares held at the FHLB and FRB for the years ended and as of December 31, 2015 and 2014:



	Year ended December 31,
(Dollars in thousands)	2015		2014
Average required reserve balances at FRB San Francisco	$	278,101	$	168,387



	December 31,
(Dollars in thousands)	2015		2014
FHLB stock holdings	$	17,250	$	25,000
FRB stock holdings	39,741		28,496

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2015

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

The following table details our cash and cash equivalents at December 31, 2015 and December 31, 2014:



(Dollars in thousands)	December 31, 2015		December 31, 2014
Cash and due from banks (1)	$	1,372,743	$	1,694,329
Securities purchased under agreements to resell (2)	125,391		95,611
Other short-term investment securities	5,123		6,122
Total cash and cash equivalents	$	1,503,257	$	1,796,062


(1)	At December 31, 2015 and 2014, $405 million and $861 million, respectively, of our cash and due from banks was deposited at the FRB and was earning interest at the Federal Funds target rate, and interest-earning deposits in other financial institutions were $500 million and $440 million, respectively.


(2)	At December 31, 2015 and 2014, securities purchased under agreements to resell were collateralized by U.S. Treasury securities and U.S. agency securities with aggregate fair values of $128 million and $98 million, respectively. None of these securities were sold or repledged as of December 31, 2015 and 2014.

Additional information regarding our securities purchased under agreements to resell for 2015 and 2014 is as follows:



	Year Ended December 31,
(Dollars in thousands)	2015		2014
Average securities purchased under agreements to resell	$	75,504	$	108,910
Maximum amount outstanding at any month-end during the year	338,612		283,215

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

Investments, Debt and Equity Securities [Abstract]

Investment Securities

12 Months Ended

Dec. 31, 2015

Investment Securities

Our investment securities portfolio consists of: (i) an available-for-sale securities portfolio and a held-to-maturity securities portfolio, both of which represent interest-earning investment securities; and (ii) a non-marketable and other securities portfolio, which primarily represents investments managed as part of our funds management business.

Available-for-Sale Securities

The major components of our available-for-sale investment securities portfolio at December 31, 2015 and December 31, 2014 are as follows:



	December 31, 2015
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Carrying Value
Available-for-sale securities, at fair value:
U.S. Treasury securities	$	11,679,450	$	19,134	$	(20,549	)	$	11,678,035
U.S. agency debentures	2,677,453		17,684		(5,108		)	2,690,029
Residential mortgage-backed securities:
Agency-issued collateralized mortgage obligations—fixed rate	1,408,206		6,591		(15,518		)	1,399,279
Agency-issued collateralized mortgage obligations—variable rate	604,236		3,709		(9		)	607,936
Equity securities	6,596		460		(1,587		)	5,469
Total available-for-sale securities	$	16,375,941	$	47,578	$	(42,771	)	$	16,380,748



	December 31, 2014
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Carrying Value
Available-for-sale securities, at fair value:
U.S. Treasury securities	$	7,289,135	$	17,524	$	(4,386	)	$	7,302,273
U.S. agency debentures	3,540,055		30,478		(8,977		)	3,561,556
Residential mortgage-backed securities:
Agency-issued collateralized mortgage obligations—fixed rate	1,884,450		14,851		(14,458		)	1,884,843
Agency-issued collateralized mortgage obligations—variable rate	779,103		5,372		—			784,475
Equity securities	5,202		2,628		(322		)	7,508
Total available-for-sale securities	$	13,497,945	$	70,853	$	(28,143	)	$	13,540,655

The following table summarizes our unrealized losses on our AFS securities portfolio into categories of less than 12 months, or 12 months or longer as of December 31, 2015:



	December 31, 2015
	Less than 12 months					12 months or longer					Total
(Dollars in thousands)	Fair Value of Investments		Unrealized Losses			Fair Value of Investments		Unrealized Losses			Fair Value of Investments		Unrealized Losses
Available-for-sale securities:
U.S. Treasury securities	$	7,467,519	$	(20,549	)	$	—	$	—		$	7,467,519	$	(20,549	)
U.S. agency debentures	760,071		(5,108		)	—		—			760,071		(5,108		)
Residential mortgage-backed securities:
Agency-issued collateralized mortgage obligations—fixed rate	545,404		(4,681		)	373,284		(10,837		)	918,688		(15,518		)
Agency-issued collateralized mortgage obligations—variable rate	7,776		(9		)	—		—			7,776		(9		)
Equity securities	2,955		(1,587		)	—		—			2,955		(1,587		)
Total temporarily impaired securities (1)	$	8,783,725	$	(31,934	)	$	373,284	$	(10,837	)	$	9,157,009	$	(42,771	)

(1)

As of December 31, 2015, we identified a total of 243 investments that were in unrealized loss positions, of which 18 investments totaling $373.3 million with unrealized losses of $10.8 million have been in an impaired position for a period of time greater than 12 months. As of December 31, 2015, we do not intend to sell any impaired fixed income investment securities prior to recovery of our adjusted cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our adjusted cost basis. Based on our analysis as of December 31, 2015, we deem all impairments to be temporary, and therefore changes in value for our temporarily impaired securities as of the same date are included in other comprehensive income. Market valuations and impairment analyses on assets in the AFS securities portfolio are reviewed and monitored on a quarterly basis.

The following table summarizes our unrealized losses on our AFS securities portfolio into categories of less than 12 months, or 12 months or longer as of December 31, 2014:



	December 31, 2014
	Less than 12 months					12 months or longer					Total
(Dollars in thousands)	Fair Value of Investments		Unrealized Losses			Fair Value of Investments		Unrealized Losses			Fair Value of Investments		Unrealized Losses
Available-for-sale securities:
U.S. Treasury securities	$	2,297,895	$	(4,386	)	$	—	$	—		$	2,297,895	$	(4,386	)
U.S. agency debentures	249,266		(489		)	507,385		(8,488		)	756,651		(8,977		)
Residential mortgage-backed securities:
Agency-issued collateralized mortgage obligations—fixed rate	662,092		(3,104		)	453,801		(11,354		)	1,115,893		(14,458		)
Equity securities	568		(322		)	—		—			568		(322		)
Total temporarily impaired securities (1)	$	3,209,821	$	(8,301	)	$	961,186	$	(19,842	)	$	4,171,007	$	(28,143	)


(1)	As of December 31, 2014, we identified a total of 115 investments that were in unrealized loss positions, of which 33 investments totaling $961.2 million with unrealized losses of $19.8 million have been in an impaired position for a period of time greater than 12 months.

The following table summarizes the remaining contractual principal maturities and fully taxable equivalent yields on fixed income securities classified as available-for-sale as of December 31, 2015. The weighted average yield is computed using the amortized cost of fixed income investment securities, which are reported at fair value. For U.S. Treasury securities, the expected maturity is the actual contractual maturity of the notes. Expected remaining maturities for certain U.S. agency debentures may occur earlier than their contractual maturities because the note issuers have the right to call outstanding amounts ahead of their contractual maturity. Expected maturities for mortgage-backed securities may differ significantly from their contractual maturities because mortgage borrowers have the right to prepay outstanding loan obligations with or without penalties. Mortgage-backed securities classified as available-for-sale typically have original contractual maturities from 10 to 30 years whereas expected average lives of these securities tend to be significantly shorter and vary based upon structure and prepayments in lower rate environments.



	December 31, 2015
	Total				One Year or Less				After One Year to Five Years				After Five Years to Ten Years				After Ten Years
(Dollars in thousands)	Carrying Value		Weighted Average Yield		Carrying Value		Weighted Average Yield		Carrying Value		Weighted Average Yield		Carrying Value		Weighted Average Yield		Carrying Value		Weighted Average Yield
U.S. Treasury securities	$	11,678,035	1.24	%	$	1,451,224	0.54	%	$	9,870,288	1.29	%	$	356,523	2.49	%	$	—	—	%
U.S. agency debentures	2,690,029		1.60		592,245		1.60		2,048,439		1.57		49,345		2.65		—		—
Residential mortgage-backed securities:
Agency-issued collateralized mortgage obligations - fixed rate	1,399,279		1.95		—		—		—		—		770,364		2.28		628,915		1.56
Agency-issued collateralized mortgage obligations - variable rate	607,936		0.71		—		—		—		—		—		—		607,936		0.71
Total	$	16,375,279	1.34		$	2,043,469	0.84		$	11,918,727	1.34		$	1,176,232	2.36		$	1,236,851	1.14

Held-to-Maturity Securities

The components of our held-to-maturity investment securities portfolio at December 31, 2015 and December 31, 2014 are as follows:



	December 31, 2015
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Held-to-maturity securities, at cost:
U.S. agency debentures (1)	$	545,473	$	8,876	$	—		$	554,349
Residential mortgage-backed securities:
Agency-issued mortgage-backed securities	2,366,627		546		(11,698		)	2,355,475
Agency-issued collateralized mortgage obligations—fixed rate	4,225,781		3,054		(32,999		)	4,195,836
Agency-issued collateralized mortgage obligations—variable rate	370,779		758		(33		)	371,504
Agency-issued commercial mortgage-backed securities	1,214,716		3,405		(3,475		)	1,214,646
Municipal bonds and notes	67,587		55		(830		)	66,812
Total held-to-maturity securities	$	8,790,963	$	16,694	$	(49,035	)	$	8,758,622


(1)	Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.



	December 31, 2014
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Held-to-maturity securities, at cost:
U.S. agency debentures (1)	$	405,899	$	4,589	$	(38	)	$	410,450
Residential mortgage-backed securities:
Agency-issued mortgage-backed securities	2,799,923		5,789		(2,320		)	2,803,392
Agency-issued collateralized mortgage obligations—fixed rate	3,185,109		4,521		(14,885		)	3,174,745
Agency-issued collateralized mortgage obligations—variable rate	131,580		371		—			131,951
Agency-issued commercial mortgage-backed securities	814,589		1,026		(3,800		)	811,815
Municipal bonds and notes	83,942		18		(657		)	83,303
Total held-to-maturity securities	$	7,421,042	$	16,314	$	(21,700	)	$	7,415,656


(1)	Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.

The following table summarizes our unrealized losses on our held-to-maturity securities portfolio into categories of less than 12 months and 12 months or longer as of December 31, 2015:



	December 31, 2015
	Less than 12 months					12 months or longer (1)					Total
(Dollars in thousands)	Fair Value of Investments		Unrealized Losses			Fair Value of Investments		Unrealized Losses			Fair Value of Investments		Unrealized Losses
Held-to-maturity securities:
Residential mortgage-backed securities:
Agency-issued mortgage-backed securities	$	2,121,258	$	(10,860	)	$	22,507	$	(838	)	$	2,143,765	$	(11,698	)
Agency-issued collateralized mortgage obligations—fixed rate	3,153,483		(30,230		)	150,058		(2,769		)	3,303,541		(32,999		)
Agency-issued collateralized mortgage obligations—variable rate	170,350		(33		)	—		—			170,350		(33		)
Agency-issued commercial mortgage-backed securities	823,414		(2,994		)	40,276		(481		)	863,690		(3,475		)
Municipal bonds and notes	34,278		(274		)	25,509		(556		)	59,787		(830		)
Total temporarily impaired securities (1)	$	6,302,783	$	(44,391	)	$	238,350	$	(4,644	)	$	6,541,133	$	(49,035	)

(1)

As of December 31, 2015, we identified a total of 384 investments that were in unrealized loss positions, of which 58 investments totaling $238.4 million with unrealized losses of $4.6 million have been in an impaired position for a period of time greater than 12 months. As of December 31, 2015, we do not intend to sell any impaired fixed income investment securities prior to recovery of our adjusted cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our adjusted cost basis, which is consistent with our classification of these securities. Based on our analysis as of December 31, 2015, we deem all impairments to be temporary. Market valuations and impairment analyses on assets in the HTM securities portfolio are reviewed and monitored on a quarterly basis.

The following table summarizes our unrealized losses on our held-to-maturity securities portfolio into categories of less than 12 months and 12 months or longer as of December 31, 2014:



	December 31, 2014
	Less than 12 months					12 months or longer (1)					Total
(Dollars in thousands)	Fair Value of Investments		Unrealized Losses			Fair Value of Investments		Unrealized Losses			Fair Value of Investments		Unrealized Losses
Held-to-maturity securities:
U.S. agency debentures	$	48,335	$	(38	)	$	—	$	—		$	48,335	$	(38	)
Residential mortgage-backed securities:
Agency-issued mortgage-backed securities	999,230		(2,320		)	—		—			999,230		(2,320		)
Agency-issued collateralized mortgage obligations—fixed rate	1,682,348		(9,705		)	783,558		(5,180		)	2,465,906		(14,885		)
Agency-issued commercial mortgage-backed securities	629,840		(3,800		)	—		—			629,840		(3,800		)
Municipal bonds and notes	79,141		(657		)	—		—			79,141		(657		)
Total temporarily impaired securities (2)	$	3,438,894	$	(16,520	)	$	783,558	$	(5,180	)	$	4,222,452	$	(21,700	)


(1)	Represents securities in an unrealized loss position for twelve months or longer in which the amortized cost basis was re-set for those securities re-designated from AFS to HTM effective June 1, 2014.


(2)	As of December 31, 2014, we identified a total of 292 investments that were in unrealized loss positions, of which 26 investments totaling $783.6 million with unrealized losses of $5.2 million have been in an impaired position for a period of time greater than 12 months.

The following table summarizes the remaining contractual principal maturities and fully taxable equivalent yields on fixed income investment securities classified as held-to-maturity as of December 31, 2015. Interest income on certain municipal bonds and notes (non-taxable investments) are presented on a fully taxable equivalent basis using the federal statutory tax rate of 35.0 percent. The weighted average yield is computed using the amortized cost of fixed income investment securities. For U.S. agency debentures, the expected maturity is the actual contractual maturity of the notes. Expected maturities for mortgage-backed securities may differ significantly from their contractual maturities because mortgage borrowers have the right to prepay outstanding loan obligations with or without penalties. Mortgage-backed securities classified as held-to-maturity typically have original contractual maturities from 10 to 30 years whereas expected average lives of these securities tend to be significantly shorter and vary based upon structure and prepayments in lower rate environments.



	December 31, 2015
	Total				One Year or Less				After One Year to Five Years				After Five Years to Ten Years				After Ten Years
(Dollars in thousands)	Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield
U.S. agency debentures	$	545,473	2.69	%	$	—	—	%	$	—	—	%	$	545,473	2.69	%	$	—	—	%
Residential mortgage-backed securities:
Agency-issued mortgage-backed securities	2,366,627		2.40		—		—		38,436		2.38		621,748		2.20		1,706,443		2.47
Agency-issued collateralized mortgage obligations - fixed rate	4,225,781		1.72		—		—		—		—		—		—		4,225,781		1.72
Agency-issued collateralized mortgage obligations - variable rate	370,779		0.74		—		—		—		—		—		—		370,779		0.74
Agency-issued commercial mortgage-backed securities	1,214,716		2.12		—		—		—		—		—		—		1,214,716		2.12
Municipal bonds and notes	67,587		6.04		4,674		5.58		27,893		5.95		30,531		6.14		4,489		6.34
Total	$	8,790,963	2.01		$	4,674	5.58		$	66,329	3.88		$	1,197,752	2.52		$	7,522,208	1.91

Non-marketable and Other Securities

The major components of our non-marketable and other investment securities portfolio at December 31, 2015 and December 31, 2014 are as follows:



(Dollars in thousands)	December 31, 2015		December 31, 2014
Non-marketable and other securities (1):
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments (2)	$	152,237	$	1,130,882
Other venture capital investments (3)	2,040		71,204
Other securities (fair value accounting) (4)	548		108,251
Non-marketable securities (equity method accounting) (5):
Venture capital and private equity fund investments	85,705		—
Debt funds	21,970		26,672
Other investments	118,532		116,002
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments (6)	120,676		140,551
Other investments (7)	18,882		13,423
Investments in qualified affordable housing projects, net (7)	154,356		121,155
Total non-marketable and other securities	$	674,946	$	1,728,140

(1)

During the second quarter of 2015 we adopted new accounting guidance related to our consolidated variable interest entities (ASU 2015-02) under a modified retrospective approach. Periods prior to January 1, 2015 have not been revised. See Note 2— "Summary of Significant Accounting Policies” and Note 5— "Variable Interest Entities" of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details regarding our non-marketable and other securities.


(2)	The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and our ownership percentage of each fund at December 31, 2015 and December 31, 2014 (fair value accounting):



	December 31, 2015				December 31, 2014
(Dollars in thousands)	Amount		Ownership %		Amount		Ownership %
SVB Strategic Investors Fund, LP	$	20,794	12.6	%	$	24,645	12.6	%
SVB Strategic Investors Fund II, LP (i)	—		—		97,250		8.6
SVB Strategic Investors Fund III, LP (i)	—		—		269,821		5.9
SVB Strategic Investors Fund IV, LP (i)	—		—		291,291		5.0
Strategic Investors Fund V Funds (i)	—		—		226,111		Various
Strategic Investors Fund VI Funds (i)	—		—		89,605		—
SVB Capital Preferred Return Fund, LP	60,619		20.0		62,110		20.0
SVB Capital—NT Growth Partners, LP	62,983		33.0		61,973		33.0
SVB Capital Partners II, LP (i)	—		—		302		5.1
Other private equity fund (ii)	7,841		58.2		7,774		58.2
Total venture capital and private equity fund investments	$	152,237			$	1,130,882


(i)	Funds were deconsolidated during the second quarter of 2015 upon adoption of ASU 2015-02 and are now reported under equity method accounting. Periods prior to January 1, 2015 have not been revised. See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.


(ii)	At December 31, 2015, we had a direct ownership interest of 41.5 percent in other private equity funds and an indirect ownership interest of 12.6 percent through our ownership interest of SVB Capital—NT Growth Partners, LP and an indirect ownership interest of 4.1 percent through our ownership interest of SVB Capital Preferred Return Fund, LP.


(3)	The following table shows the amounts of other venture capital investments held by the following consolidated funds and our ownership percentage of each fund at December 31, 2015 and December 31, 2014 (fair value accounting):



	December 31, 2015				December 31, 2014
(Dollars in thousands)	Amount		Ownership %		Amount		Ownership %
Silicon Valley BancVentures, LP	$	2,040	10.7	%	$	3,291	10.7	%
SVB Capital Partners II, LP (i)	—		—		20,481		5.1
Capital Partners III, LP (i)	—		—		41,055		—
SVB Capital Shanghai Yangpu Venture Capital Fund (i)	—		—		6,377		6.8
Total other venture capital investments	$	2,040			$	71,204


(i)	Funds were deconsolidated during the second quarter of 2015 upon adoption of ASU 2015-02 and are now reported under equity method accounting. Periods prior to January 1, 2015 have not been revised. See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.


(4)	Investments classified as other securities (fair value accounting) represent direct equity investments in public companies held by our consolidated funds. At December 31, 2014, the amount primarily includes unrealized gains in one public company, FireEye, that were realized during the first quarter of 2015. Funds were deconsolidated during the second quarter of 2015 upon adoption of ASU 2015-02.


(5)	The following table shows the carrying value and our ownership percentage of each investment at December 31, 2015 and December 31, 2014 (equity method accounting):



	December 31, 2015				December 31, 2014
(Dollars in thousands)	Amount		Ownership %		Amount		Ownership %
Venture capital and private equity fund investments:
SVB Strategic Investors Fund II, LP (i)	$	10,035	8.6	%	$	—	—	%
SVB Strategic Investors Fund III, LP (i)	23,926		5.9		—		—
SVB Strategic Investors Fund IV, LP (i)	26,411		5.0		—		—
Other venture capital and private equity fund investments (i)	25,333		Various		—		—
Total venture capital and private equity fund investments	$	85,705			$	—
Debt funds:
Gold Hill Capital 2008, LP (ii)	$	17,453	15.5	%	$	21,294	15.5	%
Other debt funds	4,517		Various		5,378		Various
Total debt funds	$	21,970			$	26,672
Other investments:
China Joint Venture investment	$	78,799	50.0	%	$	79,569	50.0	%
Other investments	39,733		Various		36,433		Various
Total other investments	$	118,532			$	116,002

(i)

Represents funds previously consolidated and reported under fair value accounting in (2) above prior to adoption of ASU 2015-02 during the second quarter of 2015. Periods prior to January 1, 2015 have not been revised. See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.


(ii)	At December 31, 2015, we had a direct ownership interest of 11.5 percent in the fund and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of 4.0 percent.

(6)

Represents investments in 267 and 281 funds (primarily venture capital funds) at December 31, 2015 and December 31, 2014, respectively, where our ownership interest is less than 5% of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships operating activities and financial policies. The carrying value, and estimated fair value, of these venture capital and private equity fund investments (cost method accounting) was $121 million, and $233 million, respectively, as of December 31, 2015. The carrying value, and estimated fair value, of the venture capital and private equity fund investments (cost method accounting) was $141 million, and $234 million, respectively, as of December 31, 2014.


(7)	Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in qualified affordable housing projects (ASU 2014-01). See Note 2— "Summary of Significant Accounting Policies" of the "Notes to the Consolidated Financial Statements" under Part II, Item 8 in this report.

The following table presents the balances of our investments in qualified affordable housing projects and related unfunded commitments at December 31, 2015 and December 31, 2014:



(Dollars in thousands)	December 31, 2015		December 31, 2014
Investments in qualified affordable housing projects, net	$	154,356	$	121,155
Accrued expenses and other liabilities	90,978		65,921

The following table presents other information relating to our investments in qualified affordable housing projects for the year ended December 31, 2015, 2014 and 2013:



	Year ended December 31,
(Dollars in thousands)	2015		2014		2013
Tax credits and other tax benefits recognized	$	14,375	$	12,109	$	8,762
Amortization expense included in provision for income taxes (i)	10,389		9,340		6,802


(i)	All investments are amortized using the proportional amortization method and amortization expense is included in the provision for income taxes.

The following table presents the components of gains and losses (realized and unrealized) on investment securities in 2015, 2014 and 2013:



	Year ended December 31,
(Dollars in thousands)	2015			2014			2013
Gross gains on investment securities:
Available-for-sale securities, at fair value (1)	$	2,972		$	658		$	3,887
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments	32,399			349,747			186,404
Other venture capital investments	1,512			17,309			9,241
Other securities (fair value accounting)	9,180			151,007			227,252
Non-marketable securities (equity method accounting):
Venture capital and private equity fund investments	26,415			1,661			878
Debt funds	4,111			4,749			9,988
Other investments	2,791			4,755			7,369
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments	25,908			16,001			10,081
Other investments	2,598			5,794			431
Total gross gains on investment securities	107,886			551,681			455,531
Gross losses on investment securities:
Available-for-sale securities, at fair value (1)	(1,770		)	(19,255		)	(3,349		)
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments	(9,210		)	(86,263		)	(17,185		)
Other venture capital investments	(320		)	(4,516		)	(3,496		)
Other securities (fair value accounting)	(1,559		)	(170,890		)	(2,962		)
Non-marketable securities (equity method accounting):
Venture capital and private equity fund investments	(909		)	(231		)	(2,536		)
Debt funds	(774		)	(1,558		)	(546		)
Other investments	(3,146		)	(759		)	(29		)
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments (2)	(729		)	(827		)	(1,700		)
Other investments (3)	(24		)	(359		)	(4,320		)
Total gross losses on investment securities	(18,441		)	(284,658		)	(36,123		)
Gains on investment securities, net	$	89,445		$	267,023		$	419,408


(1)	Includes realized gains (losses) on sales of available-for-sale securities that are recognized in the income statement. Unrealized gains (losses) on available-for-sale securities are recognized in other comprehensive income. The cost basis of available-for-sale securities sold is determined on a specific identification basis.

(2)

Includes OTTI of $0.6 million from the declines in value for 22 of the 267 investments, $0.8 million from the declines in value for 27 of the 281 investments, and $1.4 million from the declines in value for 43 of the 288 investments held at December 31, 2015, 2014, and 2013, respectively. We concluded that any declines in value for the remaining investments were temporary, and as such, no OTTI was required to be recognized.


(3)	No OTTI was recognized for the years ended December 31, 2015 and December 31, 2014. We concluded that any declines in value for the investments were temporary, and as such, no OTTI was required to be recognized. There was $3.9 million of OTTI recognized for the year ended December 31, 2013 on a single direct equity investment.

Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Loans and Allowance for Loan Losses

We serve a variety of commercial clients in the technology, life science/healthcare, private equity/venture capital and premium wine industries. Our technology clients generally tend to be in the industries of hardware (semiconductors, communications and electronics), software and related services, and energy and resource innovation. Because of the diverse nature of ERI products and services, for our loan-related reporting purposes, ERI-related loans are reported under our hardware, software and internet, life science/healthcare and other commercial loan categories, as applicable. Our life science/healthcare clients primarily tend to be in the industries of biotechnology, medical devices, healthcare information technology and healthcare services. Loans made to private equity/venture capital firm clients typically enable them to fund investments prior to their receipt of funds from capital calls. 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 Bank and provide real estate secured loans to eligible employees through our EHOP. Our private banking clients are primarily private equity/venture capital professionals and executive leaders in the innovation companies they support. These products and services include real estate secured home equity lines of credit, which may be used to finance real estate investments and loans used to purchase, renovate or refinance personal residences. These products and services also include restricted stock purchase loans and capital call lines of credit.

We also provide community development loans made as part of our responsibilities under the Community Reinvestment Act. These loans are included within “Construction loans” below and are primarily secured by real estate.

The composition of loans, net of unearned income of $115 million and $104 million at December 31, 2015 and 2014, respectively, is presented in the following table:



	December 31,
(Dollars in thousands)	2015		2014
Commercial loans:
Software and internet	$	5,437,915	$	4,954,676
Hardware	1,071,528		1,131,006
Private equity/venture capital	5,467,577		4,582,906
Life science/healthcare	1,710,642		1,289,904
Premium wine	201,175		187,568
Other	312,278		234,551
Total commercial loans	14,201,115		12,380,611
Real estate secured loans:
Premium wine (1)	646,120		606,753
Consumer loans (2)	1,544,440		1,118,115
Other	44,830		39,651
Total real estate secured loans	2,235,390		1,764,519
Construction loans	78,682		78,626
Consumer loans	226,883		160,520
Total loans, net of unearned income (3)	$	16,742,070	$	14,384,276


(1)	Included in our premium wine portfolio are gross construction loans of $121 million and $112 million at December 31, 2015 and 2014, respectively.


(2)	Consumer loans secured by real estate at December 31, 2015 and 2014 were comprised of the following:



	December 31,
(Dollars in thousands)	2015		2014
Loans for personal residence	$	1,312,818	$	918,629
Loans to eligible employees	156,001		133,568
Home equity lines of credit	75,621		65,918
Consumer loans secured by real estate	$	1,544,440	$	1,118,115


(3)	Included within our total loan portfolio are credit card loans of $177 million and $131 million at December 31, 2015 and 2014, respectively.

Credit Quality

The composition of loans, net of unearned income of $115 million and $104 million at December 31, 2015 and December 31, 2014, respectively, broken out by portfolio segment and class of financing receivable, is as follows:



	December 31,
(Dollars in thousands)	2015		2014
Commercial loans:
Software and internet	$	5,437,915	$	4,954,676
Hardware	1,071,528		1,131,006
Private equity/venture capital	5,467,577		4,582,906
Life science/healthcare	1,710,642		1,289,904
Premium wine	847,295		794,321
Other	435,790		352,828
Total commercial loans	14,970,747		13,105,641
Consumer loans:
Real estate secured loans	1,544,440		1,118,115
Other consumer loans	226,883		160,520
Total consumer loans	1,771,323		1,278,635
Total loans, net of unearned income	$	16,742,070	$	14,384,276

The following table summarizes the aging of our gross loans, broken out by portfolio segment and class of financing receivable as of December 31, 2015 and 2014:



(Dollars in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Loans Past Due 90 Days or More Still Accruing Interest
December 31, 2015:
Commercial loans:
Software and internet	$	3,384	$	6,638	$	—	$	10,022	$	5,371,222	$	—
Hardware	1,061		66		—		1,127		1,051,368		—
Private equity/venture capital	—		17		—		17		5,511,912		—
Life science/healthcare	853		6,537		—		7,390		1,665,801		—
Premium wine	16		65		—		81		847,249		—
Other	14		22		—		36		438,313		—
Total commercial loans	5,328		13,345		—		18,673		14,885,865		—
Consumer loans:
Real estate secured loans	4,911		865		—		5,776		1,537,421		—
Other consumer loans	228		115		—		343		226,369		—
Total consumer loans	5,139		980		—		6,119		1,763,790		—
Total gross loans excluding impaired loans	10,467		14,325		—		24,792		16,649,655		—
Impaired loans	333		—		7,221		7,554		175,130		—
Total gross loans	$	10,800	$	14,325	$	7,221	$	32,346	$	16,824,785	$	—
December 31, 2014:
Commercial loans:
Software and internet	$	10,989	$	1,627	$	52	$	12,668	$	4,950,291	$	52
Hardware	13,424		126		—		13,550		1,124,423		—
Private equity/venture capital	40,773		—		—		40,773		4,580,526		—
Life science/healthcare	738		786		—		1,524		1,298,728		—
Premium wine	—		—		—		—		795,345		—
Other	178		3		—		181		354,939		—
Total commercial loans	66,102		2,542		52		68,696		13,104,252		52
Consumer loans:
Real estate secured loans	1,592		341		1,250		3,183		1,114,286		1,250
Other consumer loans	—		—		—		—		160,212		—
Total consumer loans	1,592		341		1,250		3,183		1,274,498		1,250
Total gross loans excluding impaired loans	67,694		2,883		1,302		71,879		14,378,750		1,302
Impaired loans	598		1,293		22,320		24,211		13,926		—
Total gross loans	$	68,292	$	4,176	$	23,622	$	96,090	$	14,392,676	$	1,302

The following table summarizes our impaired loans as they relate to our allowance for loan losses, broken out by portfolio segment and class of financing receivable for the years ended December 31, 2015 and 2014:



(Dollars in thousands)	Impaired loans for which there is a related allowance for loan losses		Impaired loans for which there is no related allowance for loan losses		Total carrying value of impaired loans		Total unpaid principal of impaired loans
December 31, 2015:
Commercial loans:
Software and internet	$	100,866	$	—	$	100,866	$	125,494
Hardware	27,736		—		27,736		27,869
Private equity/venture capital	—		—		—		—
Life science/healthcare	50,429		925		51,354		55,310
Premium wine	898		1,167		2,065		2,604
Other	520		—		520		520
Total commercial loans	180,449		2,092		182,541		211,797
Consumer loans:
Real estate secured loans	143		—		143		1,393
Other consumer loans	—		—		—		—
Total consumer loans	143		—		143		1,393
Total	$	180,592	$	2,092	$	182,684	$	213,190
December 31, 2014:
Commercial loans:
Software and internet	$	33,287	$	—	$	33,287	$	34,218
Hardware	1,403		1,118		2,521		2,535
Private equity/venture capital	—		—		—		—
Life science/healthcare	475		—		475		2,453
Premium wine	—		1,304		1,304		1,743
Other	233		—		233		233
Total commercial loans	35,398		2,422		37,820		41,182
Consumer loans:
Real estate secured loans	—		192		192		1,412
Other consumer loans	125		—		125		305
Total consumer loans	125		192		317		1,717
Total	$	35,523	$	2,614	$	38,137	$	42,899

The following table summarizes our average impaired loans and the related interest income while impaired, broken out by portfolio segment and class of financing receivable during 2015, 2014 and 2013:



Year ended December 31,	Average impaired loans						Interest income on impaired loans
(Dollars in thousands)	2015		2014		2013		2015		2014 (1)		2013 (1)
Commercial loans:
Software and internet	$	63,825	$	14,357	$	6,254	$	344	$	—	$	—
Hardware	8,854		6,634		24,508		574		—		—
Private equity/venture capital	—		—		37		—		—		—
Life science/healthcare	18,083		516		334		132		—		—
Premium wine	1,455		1,381		2,210		12		—		—
Other	2,758		1,088		3,601		8		—		—
Total commercial loans	94,975		23,976		36,944		1,070		—		—
Consumer loans:
Real estate secured loans	172		218		2,957		—		—		—
Other consumer loans	41		322		945		—		—		—
Total consumer loans	213		540		3,902		—		—		—
Total average impaired loans	$	95,188	$	24,516	$	40,846	$	1,070	$	—	$	—


(1)	In 2014 and 2013 all impaired loans were nonaccrual loans and no interest income was recognized.

The following tables summarize the activity relating to our allowance for loan losses for 2015, 2014, and 2013 broken out by portfolio segment:



Year ended December 31, 2015	Beginning Balance December 31, 2014		Charge-offs			Recoveries		Provision for (Reduction of) Loan Losses			Ending Balance December 31, 2015
(Dollars in thousands)	Beginning Balance December 31, 2014		Charge-offs			Recoveries		Provision for (Reduction of) Loan Losses			Ending Balance December 31, 2015
Commercial loans:
Software and internet	$	80,981	$	(33,246	)	$	1,621	$	53,689		$	103,045
Hardware	25,860		(5,145		)	3,332		(962		)	23,085
Private equity/venture capital	27,997		—			—		7,285			35,282
Life science/healthcare	15,208		(7,291		)	277		28,382			36,576
Premium wine	4,473		—			7		725			5,205
Other	3,253		(4,990		)	193		5,796			4,252
Total commercial loans	157,772		(50,672		)	5,430		94,915			207,445
Consumer loans	7,587		(296		)	163		2,714			10,168
Total allowance for loan losses	$	165,359	$	(50,968	)	$	5,593	$	97,629		$	217,613



Year ended December 31, 2014	Beginning Balance December 31, 2013		Charge-offs			Recoveries		Provision for Loan Losses		Ending Balance December 31, 2014
(Dollars in thousands)	Beginning Balance December 31, 2013		Charge-offs			Recoveries		Provision for Loan Losses		Ending Balance December 31, 2014
Commercial loans:
Software and internet	$	64,084	$	(21,031	)	$	1,425	$	36,503	$	80,981
Hardware	36,553		(15,265		)	2,238		2,334		25,860
Private equity/venture capital	16,385		—			—		11,612		27,997
Life science/healthcare	11,926		(2,951		)	374		5,859		15,208
Premium wine	3,914		(35		)	240		354		4,473
Other	3,680		(3,886		)	1,499		1,960		3,253
Total commercial loans	136,542		(43,168		)	5,776		58,622		157,772
Consumer loans	6,344		—			379		864		7,587
Total allowance for loan losses	$	142,886	$	(43,168	)	$	6,155	$	59,486	$	165,359



Year ended December 31, 2013	Beginning Balance December 31, 2012		Charge-offs			Recoveries		Provision for (Reduction of) Loan Losses			Ending Balance December 31, 2013
(Dollars in thousands)	Beginning Balance December 31, 2012		Charge-offs			Recoveries		Provision for (Reduction of) Loan Losses			Ending Balance December 31, 2013
Commercial loans:
Software and internet	$	42,648	$	(8,861	)	$	1,934	$	28,363		$	64,084
Hardware	29,761		(18,819		)	2,677		22,934			36,553
Private equity/venture capital	9,963		—			—		6,422			16,385
Life science/healthcare	13,606		(6,010		)	1,860		2,470			11,926
Premium wine	3,523		—			170		221			3,914
Other	3,912		(8,107		)	2,995		4,880			3,680
Total commercial loans	103,413		(41,797		)	9,636		65,290			136,542
Consumer loans	7,238		(869		)	1,572		(1,597		)	6,344
Total allowance for loan losses	$	110,651	$	(42,666	)	$	11,208	$	63,693		$	142,886

The following table summarizes the allowance for loan losses individually and collectively evaluated for impairment as of December 31, 2015 and 2014, broken out by portfolio segment:



	December 31, 2015								December 31, 2014
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Individually Evaluated for Impairment				Collectively Evaluated for Impairment
(Dollars in thousands)	Allowance for loan losses		Recorded investment in loans		Allowance for loan losses		Recorded investment in loans		Allowance for loan losses		Recorded investment in loans		Allowance for loan losses		Recorded investment in loans
Commercial loans:
Software and internet	$	34,098	$	100,866	$	68,947	$	5,337,049	$	13,695	$	33,287	$	67,286	$	4,921,389
Hardware	3,160		27,736		19,925		1,043,792		1,133		2,521		24,727		1,128,485
Private equity/venture capital	—		—		35,282		5,467,577		—		—		27,997		4,582,906
Life science/healthcare	20,230		51,354		16,346		1,659,288		121		475		15,087		1,289,429
Premium wine	90		2,065		5,115		845,230		—		1,304		4,473		793,017
Other	52		520		4,200		435,270		71		233		3,182		352,595
Total commercial loans	57,630		182,541		149,815		14,788,206		15,020		37,820		142,752		13,067,821
Consumer loans	143		143		10,025		1,771,180		31		317		7,556		1,278,318
Total	$	57,773	$	182,684	$	159,840	$	16,559,386	$	15,051	$	38,137	$	150,308	$	14,346,139

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 “Performing (Criticized)”. When a significant payment delay occurs on a criticized loan, the loan is impaired. The loan is also considered for nonaccrual status if full repayment is determined to be improbable. All of our nonaccrual loans are risk-rated 8 or 9 and are classified under the nonperforming impaired category. (For further description of nonaccrual loans, refer to Note 2—“Summary of Significant Accounting Policies”). Loans rated 10 are charged-off and are not included as part of our loan portfolio balance. We review our credit quality indicators for performance and appropriateness of risk ratings as part of our evaluation process for our allowance for loan losses.

The following table summarizes the credit quality indicators, broken out by portfolio segment and class of financing receivables as of December 31, 2015 and 2014:



(Dollars in thousands)	Pass		Performing (Criticized)		Performing Impaired (Criticized)		Nonperforming Impaired (Nonaccrual)		Total
December 31, 2015:
Commercial loans:
Software and internet	$	4,933,179	$	448,065	$	23,321	$	77,545	$	5,482,110
Hardware	955,675		96,820		27,306		430		1,080,231
Private equity/venture capital	5,474,929		37,000		—		—		5,511,929
Life science/healthcare	1,544,555		128,636		7,247		44,107		1,724,545
Premium wine	825,058		22,272		898		1,167		849,395
Other	429,481		8,868		520		—		438,869
Total commercial loans	14,162,877		741,661		59,292		123,249		15,087,079
Consumer loans:
Real estate secured loans	1,539,468		3,729		—		143		1,543,340
Other consumer loans	224,601		2,111		—		—		226,712
Total consumer loans	1,764,069		5,840		—		143		1,770,052
Total gross loans	$	15,926,946	$	747,501	$	59,292	$	123,392	$	16,857,131
December 31, 2014:
Commercial loans:
Software and internet	$	4,611,253	$	351,706	$	—	$	33,287	$	4,996,246
Hardware	945,998		191,975		—		2,521		1,140,494
Private equity/venture capital	4,615,231		6,068		—		—		4,621,299
Life science/healthcare	1,165,266		134,986		—		475		1,300,727
Premium wine	774,962		20,383		—		1,304		796,649
Other	346,153		8,967		—		233		355,353
Total commercial loans	12,458,863		714,085		—		37,820		13,210,768
Consumer loans:
Real estate secured loans	1,112,396		5,073		—		192		1,117,661
Other consumer loans	158,162		2,050		—		125		160,337
Total consumer loans	1,270,558		7,123		—		317		1,277,998
Total gross loans	$	13,729,421	$	721,208	$	—	$	38,137	$	14,488,766

TDRs

As of December 31, 2015 we had 17 TDRs with a total carrying value of $111.7 million where concessions have been granted to borrowers experiencing financial difficulties, in an attempt to maximize collection. This compares to seven TDRs with a total carrying value of $7.2 million as of December 31, 2014. There were unfunded commitments available for funding of $1.0 million to the clients associated with these TDRs as of December 31, 2015. The following table summarizes our loans modified in TDRs, broken out by portfolio segment and class of financing receivables at December 31, 2015 and 2014:



	December 31,
(Dollars in thousands)	2015		2014
Loans modified in TDRs:
Commercial loans:
Software and internet	$	56,790	$	3,784
Hardware	473		1,118
Life science/healthcare	51,878		—
Premium wine	2,065		1,891
Other	519		233
Total commercial loans	111,725		7,026
Consumer loans:
Other consumer loans	—		125
Total consumer loans	—		125
Total	$	111,725	$	7,151

The following table summarizes the recorded investment in loans modified in TDRs, broken out by portfolio segment and class of financing receivable, for modifications made during 2015, 2014, and 2013:



	Year ended December 31,
(Dollars in thousands)	2015		2014		2013
Loans modified in TDRs during the period:
Commercial loans:
Software and internet	$	56,790	$	1,033	$	4,932
Hardware	286		1,118		8,143
Private equity/venture capital	—		—		77
Life science/healthcare	51,878		—		—
Premium wine	898		587		—
Other	519		—		690
Total commercial loans	110,371		2,738		13,842
Consumer loans:
Other consumer loans	—		—		6
Total consumer loans	—		—		6
Total loans modified in TDRs during the period (1)	$	110,371	$	2,738	$	13,848


(1)	During 2015 we had $23.5 million of partial charge-offs on loans classified as TDRs. We did not have any partial charge-offs in 2014 and in 2013 we had partial charge-offs of $11.1 million.

All new TDRs in 2015 were modified through payment deferrals granted to our clients. New TDRs in 2014 included $1.7 million of payment deferrals and $1.0 million of principal forgiveness. In 2013 all new TDRs were modified through payment deferrals.

The related allowance for loan losses for the majority of our TDRs is determined on an individual basis by comparing the carrying value of the loan to the present value of the estimated future cash flows, discounted at the pre-modification contractual interest rate. For certain TDRs, the related allowance for loan losses is determined based on the fair value of the collateral if the loan is collateral dependent.

The following table summarizes the recorded investment in loans modified in TDRs within the previous 12 months that subsequently defaulted during their respective periods, broken out by portfolio segment and class of financing receivable. During the 2014 year, there were no TDRs modified within the previous 12 months that defaulted.



	December 31,
(Dollars in thousands)	2015		2014		2013
TDRs modified within the previous 12 months that defaulted during the period:
Commercial loans:
Software and internet	$	16,804	$	—	$	—
Hardware	286		—		1,627
Private equity/venture capital	—		—		38
Life science/healthcare	943		—		—
Other	—		—		365
Total commercial loans	18,033		—		2,030
Consumer loans:
Real estate secured loans	—		—		—
Other consumer loans	—		—		6
Total consumer loans	—		—		6
Total TDRs modified within the previous 12 months that defaulted in the period	$	18,033	$	—	$	2,036

Charge-offs and defaults on previously restructured loans are evaluated to determine the impact to the allowance for loan losses, if any. The evaluation of these defaults may impact the assumptions used in calculating the reserve on other TDRs and impaired 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 was necessary to determine the allowance for loan losses as of December 31, 2015.

Premises and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and equipment at December 31, 2015 and 2014 consisted of the following:



	December 31,
(Dollars in thousands)	2015			2014
Computer software	$	170,625		$	149,579
Computer hardware	41,856			52,203
Leasehold improvements	60,339			48,780
Furniture and equipment	28,645			24,320
Total	301,465			274,882
Accumulated depreciation and amortization	(198,840		)	(195,037		)
Premises and equipment, net	$	102,625		$	79,845

Depreciation and amortization expense for premises and equipment was $28.3 million, $30.0 million, and $29.1 million in 2015, 2014 and 2013, respectively. Additionally, in 2015 we wrote-off $23.2 million of certain fully depreciated assets, primarily computer hardware.

Disposal - Assets Held-for-Sale

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal - Assets Held-for-Sale

At December 31, 2014, we had net assets held-for-sale of $44.3 million related to our agreement to sell all of the outstanding capital stock of the Bank’s subsidiary, SVB India Finance Private Limited, a non-banking financial company in India. The sale was completed on April 13, 2015 and no held-for-sale operations remain at December 31, 2015. As a result of the held-for-sale designation we recognized a $13.9 million impairment loss in 2014 and a gain of $1.3 million upon completion of the sale in 2015. The following table details selected financial information included in the loss from the then pending sale:



(Dollars in thousands)	Year ended December 31, 2014
Losses primarily attributable to cumulative foreign currency translation adjustment	$	12,934
Transaction-related expenses	1,000
Total impairment loss included in other noninterest income (1)	$	13,934
Tax impact of undistributed earnings of SVBIF	2,900
Tax impact from net losses on SVBIF sale transaction	(5,398		)
Net tax impact included in income tax expense	$	(2,498	)
Net loss on SVBIF sale transaction	$	11,436


(1)	The total impairment loss is included in noninterest income in our Global Commercial Bank operating segment as reported in Note 22—”Segment Reporting” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report.

The following table presents the composition of SVBIF assets held-for-sale included in accrued interest receivable and other assets at December 31, 2014:



(Dollars in thousands)	December 31, 2014
Assets:
Cash and due from banks	$	3,054
Securities purchased under agreement to resell and other short-term investments	11,898
Net loans	26,800
Premises and equipment, net	24
Accrued interest receivable and other assets	7,163
Total assets of SVBIF held-for-sale (1)	$	48,939
Liabilities:
Other liabilities	$	4,686
Total liabilities of SVBIF held-for-sale (1)	$	4,686


(1)	Net assets of $44.3 million are included in our Global Commercial Bank operating segment as reported in Note 22—”Segment Reporting” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report.

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721683-107760

Short-Term Borrowings and Long-Term Debt

Deposits

12 Months Ended

Dec. 31, 2015

Deposits [Abstract]

Deposits

The following table presents the composition of our deposits at December 31, 2015 and 2014:



	December 31,
(Dollars in thousands)	2015		2014
Noninterest-bearing demand	$	30,867,497	$	24,583,682
Interest bearing checking and savings accounts	330,525		262,800
Money market	6,128,442		6,177,706
Money market deposits in foreign offices	88,656		242,526
Sweep deposits in foreign offices	1,657,177		2,948,658
Time	70,479		128,127
Total deposits	$	39,142,776	$	34,343,499

The aggregate amount of time deposit accounts individually equal to or greater than $250,000 totaled $54 million and $106 million at December 31, 2015 and 2014, respectively. At December 31, 2015, time deposit accounts individually equal to or greater than $250,000 totaling $54 million were scheduled to mature within one year.

Short-Term Borrowings and Long-Term Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

The following table represents outstanding short-term borrowings and long-term debt at December 31, 2015 and 2014:



				Carrying Value
(Dollars in thousands)	Maturity	Principal value at December 31, 2015		December 31, 2015		December 31, 2014
Short-term borrowings:
Short-term FHLB advances	January 4, 2016	$	638,000	$	638,000	$	—
Federal funds purchased	January 4, 2016	135,000		135,000		—
Other short-term borrowings	(1)	1,900		1,900		7,781
Total short-term borrowings				$	774,900	$	7,781
Long-term debt:
3.50% Senior Notes	January 29, 2025	$	350,000	$	346,667	$	—
5.375% Senior Notes	September 15, 2020	350,000		347,016		346,477
6.05% Subordinated Notes (2)	June 1, 2017	45,964		48,350		50,040
7.0% Junior Subordinated Debentures	October 15, 2033	50,000		54,669		54,845
Total long-term debt				$	796,702	$	451,362


(1)	Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor, which includes an interest rate swap agreement related to our 6.05% Subordinated Notes.


(2)	At December 31, 2015 and 2014, included in the carrying value of our 6.05% Subordinated Notes were $2.8 million and $4.6 million, respectively, related to hedge accounting associated with the notes.

The aggregate annual maturities of long-term debt obligations as of December 31, 2015 are as follows:



Year ended December 31, (dollars in thousands):	Amount
2016	$	—
2017	48,350
2018	—
2019	—
2020	347,016
2021 and thereafter	401,336
Total	$	796,702

Interest expense related to short-term borrowings and long-term debt was $34.9 million, $23.2 million and $23.1 million in 2015, 2014 and 2013, respectively. Interest expense is net of the hedge accounting impact from our interest rate swap agreements related to our 6.05% Subordinated Notes. The weighted average interest rate associated with our short-term borrowings as of December 31, 2015 was 0.32 percent.

3.50% Senior Notes

In January 2015, the Company issued $350 million of 3.50% Senior Notes due in January 2025. We received net proceeds of approximately $346.4 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 3.50% Senior Notes at December 31, 2015 was $346.7 million, which is reflective of $3.0 million of debt issuance costs and a $0.3 million discount.

5.375% Senior Notes

In September 2010, we issued $350 million of 5.375% Senior Notes due in September 2020. We received net proceeds of $345 million after deducting underwriting discounts and commissions and other expenses. We used approximately $250 million of the net proceeds from the sale of the notes to meet obligations due on our 3.875% Convertible Notes, which matured in April 2011. The remaining net proceeds were used for general corporate purposes, including working capital.

6.05% Subordinated Notes

In May 2007, the Bank issued 6.05% Subordinated Notes, due in June 2017, in an aggregate principal amount of $250 million ("6.05% Subordinated Notes"). Concurrent with the issuance of the 6.05% Subordinated Notes, we entered into a fixed-to-variable interest rate swap agreement. See Note 14-“Derivative Financial Instruments” of the "Notes to the Consolidated Financial Statements" under Part II, Item 8 of this report for additional details.

7.0% Junior Subordinated Debentures

In October 2003, we issued $50 million in 7.0% Junior Subordinated Debentures to a special-purpose trust, SVB Capital II. Distributions to SVB Capital II are cumulative and are payable quarterly at a fixed rate of 7.0 percent per annum of the face value of the junior subordinated debentures. Distributions for each of 2015, 2014 and 2013 were $3.5 million. The junior subordinated debentures are mandatorily redeemable upon maturity in October 2033, or may currently be redeemed prior to maturity in whole or in part, at our option, at any time. Issuance costs of $2.2 million related to the junior subordinated debentures were deferred and are being amortized over the period until mandatory redemption of the debentures in October 2033.

Available Lines of Credit

We have certain facilities in place to enable us to access short-term borrowings on a secured (using available-for-sale securities as collateral) and an unsecured basis. These include repurchase agreements and uncommitted federal funds lines with various financial institutions. As of December 31, 2015, we borrowed $135 million against our uncommitted federal funds lines. We also pledge securities to the FHLB of San Francisco and the discount window at the FRB. The market value of collateral pledged to the FHLB of San Francisco (comprised primarily of U.S. agency debentures) at December 31, 2015 totaled $1.3 billion, of which $0.6 billion was unused and available to support additional borrowings. The market value of collateral pledged at the discount window of the FRB at December 31, 2015 totaled $0.9 billion, all of which was unused and available to support additional borrowings.

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

We primarily use derivative financial instruments to manage interest rate risk, currency exchange rate risk, and to assist customers with their risk management objectives. Also, in connection with negotiating credit facilities and certain other services, we often obtain equity warrant assets giving us the right to acquire stock in private, venture-backed companies in the technology and life science/healthcare industries.

Interest Rate Risk

Interest rate risk is our primary market risk and can result from timing and volume differences in the repricing of our interest rate sensitive assets and liabilities and changes in market interest rates. To manage interest rate risk for our 6.05% Subordinated Notes, we entered into a fixed-for-floating interest rate swap agreement at the time of debt issuance based upon LIBOR with matched-terms. Net cash benefits associated with our interest rate swap is recorded as a reduction in “Interest expense—Borrowings,” a component of net interest income. The fair value of our interest rate swaps is calculated using a discounted cash flow method and adjusted for credit valuation associated with counterparty risk. Changes in fair value of the interest rate swaps are reflected in either other assets (for swaps in an asset position) or other liabilities (for swaps in a liability position).

We assess hedge effectiveness under ASC 815, Derivatives and Hedging, using the long-haul method. Any differences associated with our interest rate swaps that arise as a result of hedge ineffectiveness are recorded through net gains on derivative instruments, in noninterest income, a component of consolidated net income.

Currency Exchange Risk

We enter into foreign exchange forward contracts to economically reduce our foreign exchange exposure risk associated with the net difference between foreign currency denominated assets and liabilities. We do not designate any foreign exchange forward contracts as derivative instruments that qualify for hedge accounting. Gains or losses from changes in currency rates on foreign currency denominated instruments are included in other noninterest income, a component of noninterest income. We may experience ineffectiveness in the economic hedging relationship, because the instruments are revalued based upon changes in the currency’s spot rate on the principal value, while the forwards are revalued on a discounted cash flow basis. We record forward agreements in gain positions in other assets and loss positions in other liabilities, while net changes in fair value are recorded through net gains on derivative instruments, in noninterest income, a component of consolidated net income. Additionally, through our global banking operations we maintain customer deposits denominated in a variety of global currencies, which are used to fund certain loans in these currencies to limit our exposure to currency fluctuations.

Other Derivative Instruments

Also included in our derivative instruments are equity warrant assets, loan conversion options, forward and option contracts, and interest rate contracts. For further description of these other derivative instruments, refer to Note 2-“Summary of Significant Accounting Policies."

Counterparty Credit Risk

We are exposed to credit risk if counterparties to our derivative contracts do not perform as expected. We mitigate counterparty credit risk through credit approvals, limits, monitoring procedures and obtaining collateral, as appropriate. With respect to measuring counterparty credit risk for derivative instruments, we measure the fair value of a group of financial assets and financial liabilities on a net risk basis by counterparty portfolio.

The total notional or contractual amounts, fair value, collateral and net exposure of our derivative financial instruments at December 31, 2015 and 2014 were as follows:



		December 31, 2015										December 31, 2014
(Dollars in thousands)	Balance Sheet Location	Notional or Contractual Amount		Fair Value			Collateral (1)		Net Exposure (2)			Notional or Contractual Amount		Fair Value			Collateral (1)		Net Exposure (2)
Derivatives designated as hedging instruments:
Interest rate risks:
Interest rate swaps	Other assets	$	45,964	$	2,768		$	—	$	2,768		$	45,964	$	4,609		$	2,970	$	1,639
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	49,287		809			—		809			200,957		5,050			2,441		2,609
Foreign exchange forwards	Other liabilities	6,586		(669		)	—		(669		)	6,226		(489		)	—		(489		)
Net exposure				140			—		140					4,561			2,441		2,120
Other derivative instruments:
Equity warrant assets	Other assets	210,102		137,105			—		137,105			197,878		116,604			—		116,604
Other derivatives:
Client foreign exchange forwards	Other assets	935,514		29,722			1,900		27,822			801,487		28,954			2,370		26,584
Client foreign exchange forwards	Other liabilities	841,182		(24,978		)	—		(24,978		)	774,355		(27,647		)	—		(27,647		)
Client foreign currency options	Other assets	46,625		706			—		706			34,926		227			—		227
Client foreign currency options	Other liabilities	46,625		(706		)	—		(706		)	34,926		(227		)	—		(227		)
Client interest rate derivatives	Other assets	422,741		3,973			—		3,973			387,410		2,546			—		2,546
Client interest rate derivatives	Other liabilities	422,741		(4,384		)	—		(4,384		)	387,410		(2,748		)	—		(2,748		)
Net exposure				4,333			1,900		2,433					1,105			2,370		(1,265		)
Net				$	144,346		$	1,900	$	142,446				$	126,879		$	7,781	$	119,098


(1)	Cash collateral received from our counterparties in relation to market value exposures of derivative contracts in our favor is recorded as a component of “short-term borrowings” on our consolidated balance sheets.


(2)	Net exposure for contracts in a gain position reflects the replacement cost in the event of nonperformance by all such counterparties. The credit ratings of our institutional counterparties as of December 31, 2015 remain at investment grade or higher and there were no material changes in their credit ratings for the year ended December 31, 2015.

A summary of our derivative activity and the related impact on our consolidated statements of income for 2015, 2014 and 2013 is as follows:



		Year ended December 31,
(Dollars in thousands)	Statement of income location	2015			2014			2013
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	2,526		$	2,553		$	2,536
Changes in fair value of interest rate swaps	Net gains on derivative instruments	(20		)	(50		)	14
Net gains associated with interest rate risk derivatives		$	2,506		$	2,503		$	2,550
Derivatives not designated as hedging instruments:
Currency exchange risks:
(Losses) gains on revaluations of foreign currency instruments	Other noninterest income	$	(12,735	)	$	(21,636	)	$	3,016
Gains (losses) on internal foreign exchange forward contracts, net	Net gains on derivative instruments	12,377			21,598			(4,213		)
Net (losses) associated with currency risk		$	(358	)	$	(38	)	$	(1,197	)
Other derivative instruments:
Net gains on equity warrant assets	Net gains on derivative instruments	$	70,963		$	71,012		$	46,101
Gains (losses) on client foreign exchange forward contracts, net	Net gains on derivative instruments	$	694		$	5,081		$	(452	)
Net (losses) gains on other derivatives (1)	Net gains on derivative instruments	$	(209	)	$	(796	)	$	734


(1)	Derivative activity in 2014 and 2013 primarily represents the change in fair value of loan conversion options. We did not have any loan conversion options in 2015.

Balance Sheet Offsetting

Certain of our derivative and other financial instruments are subject to enforceable master netting arrangements with our counterparties. These agreements provide for the net settlement of multiple contracts with a single counterparty through a single payment, in a single currency, in the event of default on or termination of any one contract. The following table summarizes our assets subject to enforceable master netting arrangements as of December 31, 2015 and 2014:



								Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements
(Dollars in thousands)	Gross Amounts of Recognized Assets		Gross Amounts offset in the Statement of Financial Position			Net Amounts of Assets Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received			Net Amount
December 31, 2015
Derivative Assets:
Interest rate swaps	$	2,768	$	—		$	2,768	$	(2,768	)	$	—		$	—
Foreign exchange forwards	30,531		—			30,531		(18,141		)	(1,900		)	10,490
Foreign currency options	711		(5		)	706		(706		)	—			—
Client interest rate derivatives	3,973		—			3,973		(3,973		)	—			—
Total derivative assets:	37,983		(5		)	37,978		(25,588		)	(1,900		)	10,490
Reverse repurchase, securities borrowing, and similar arrangements	125,391		—			125,391		(125,391		)	—			—
Total	$	163,374	$	(5	)	$	163,369	$	(150,979	)	$	(1,900	)	$	10,490
December 31, 2014
Derivative Assets:
Interest rate swaps	$	4,609	$	—		$	4,609	$	(1,639	)	$	(2,970	)	$	—
Foreign exchange forwards	34,004		—			34,004		(17,843		)	(4,811		)	11,350
Foreign currency options	501		(274		)	227		(144		)	—			83
Client interest rate derivatives	2,546		—			2,546		(2,546		)	—			—
Total derivative assets:	41,660		(274		)	41,386		(22,172		)	(7,781		)	11,433
Reverse repurchase, securities borrowing, and similar arrangements	95,611		—			95,611		(95,611		)	—			—
Total	$	137,271	$	(274	)	$	136,997	$	(117,783	)	$	(7,781	)	$	11,433

The following table summarizes our liabilities subject to enforceable master netting arrangements as of December 31, 2015 and 2014:



								Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements
(Dollars in thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts offset in the Statement of Financial Position			Net Amounts of Liabilities Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Pledged		Net Amount
December 31, 2015
Derivative Liabilities:
Foreign exchange forwards	$	25,647	$	—		$	25,647	$	(10,818	)	$	—	$	14,829
Foreign currency options	711		(5		)	706		—			—		706
Client interest rate derivatives	4,384		—			4,384		(4,384		)	—		—
Total derivative liabilities:	30,742		(5		)	30,737		(15,202		)	—		15,535
Repurchase, securities lending, and similar arrangements	—		—			—		—			—		—
Total	$	30,742	$	(5	)	$	30,737	$	(15,202	)	$	—	$	15,535
December 31, 2014
Derivative Liabilities:
Foreign exchange forwards	$	28,136	$	—		$	28,136	$	(16,808	)	$	—	$	11,328
Foreign currency options	501		(274		)	227		(83		)	—		144
Client interest rate derivatives	2,748		—			2,748		(2,748		)	—		—
Total derivative liabilities:	31,385		(274		)	31,111		(19,639		)	—		11,472
Repurchase, securities lending, and similar arrangements	—		—			—		—			—		—
Total	$	31,385	$	(274	)	$	31,111	$	(19,639	)	$	—	$	11,472

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Other Income and Expenses [Abstract]

Other Noninterest Income (Loss) and Other Noninterest Expense

12 Months Ended

Dec. 31, 2015

Other Noninterest Income (Loss) and Other Noninterest Expense

A summary of other noninterest (loss) income for 2015, 2014 and 2013 is as follows:



	Year ended December 31,
(Dollars in thousands)	2015			2014			2013
Fund management fees	$	15,941		$	13,498		$	11,163
Service-based fee income	9,172			8,801			7,807
Net losses on the sale of certain assets related to our SVBIF business	—			(13,934		)	—
(Losses) gains on revaluation of foreign currency instruments (1)	(12,735		)	(21,636		)	3,016
Other (2)	21,784			12,011			14,153
Total other noninterest income (loss)	$	34,162		$	(1,260	)	$	36,139


(1)	Represents the revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash.


(2)	Includes dividends on FHLB/FRB stock, correspondent bank rebate income and other fee income.

A summary of other noninterest expense for 2015, 2014 and 2013 is as follows:



	Year ended December 31,
(Dollars in thousands)	2015		2014		2013
Lending and other client related processing costs	$	15,944	$	10,692	$	8,181
Data processing services	7,316		8,079		7,895
Telephone	9,398		7,250		6,258
Postage and supplies	3,154		3,196		2,462
Dues and publications	2,476		2,549		1,745
Other	19,999		12,939		8,950
Total other noninterest expense	$	58,287	$	44,705	$	35,491

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

We are subject to income tax in the U.S. federal jurisdiction and various state and foreign jurisdictions and have identified our federal tax return and tax returns in California and Massachusetts as major tax filings. Our U.S. federal tax returns for 2012 and subsequent years remain open to full examination. Our California and Massachusetts tax returns for 2011 and subsequent tax years remain open to full examination.

The components of our provision for income taxes for 2015, 2014 and 2013 were as follows:



	Year ended December 31,
(Dollars in thousands)	2015			2014			2013
Current provision:
Federal	$	191,194		$	181,011		$	105,616
State	50,815			45,488			26,204
Deferred (benefit) expense:
Federal	(11,270		)	(36,067		)	11,960
State	(1,985		)	(6,924		)	3,050
Income tax expense (1)	$	228,754		$	183,508		$	146,830

(1)

Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in qualified affordable housing projects (ASU 2014-01). See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.

Our effective tax rate is calculated by dividing income tax expense by the sum of income before income tax expense and the net income attributable to noncontrolling interests. The reconciliation between the federal statutory income tax rate and our effective income tax rate for 2015, 2014 and 2013, is as follows:



	December 31,
(Dollars in thousands)	2015		2014		2013
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of the federal tax effect	5.7		5.6		5.2
Meals and entertainment	0.3		0.3		0.4
Disallowed officer's compensation	0.3		0.3		0.1
Share-based compensation expense on incentive stock options and ESPP	—		0.2		(0.3	)
Tax-exempt interest income	(0.2	)	(0.3	)	(0.3	)
Low-income housing tax credits	(0.5	)	(0.5	)	(0.4	)
Valuation allowance benefit	(0.4	)	—		—
Other, net	(0.3	)	0.4		0.9
Effective income tax rate (1)	39.9	%	41.0	%	40.6	%

(1)

Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in qualified affordable housing projects (ASU 2014-01). See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.

Deferred tax assets and liabilities at December 31, 2015 and 2014, consisted of the following:



	December 31,
(Dollars in thousands)	2015			2014
Deferred tax assets:
Allowance for loan losses	$	102,410		$	80,554
Loan fee income	13,770			9,738
Other accruals not currently deductible	12,163			7,601
Share-based compensation expense	11,979			15,249
State income taxes	11,933			9,428
Net operating loss	4,406			8,641
Premises and equipment and other intangibles	1,748			1,344
Net unrealized losses on foreign currency translation	664			802
Research and development credit	324			324
Other	1,957			2,983
Deferred tax assets	161,354			136,664
Valuation allowance	(4,730		)	(8,965		)
Net deferred tax assets after valuation allowance	156,624			127,699

Deferred tax liabilities:
Non-marketable and other securities (1)	(35,721		)	(31,800		)
Derivative equity warrant assets	(31,955		)	(19,090		)
Net unrealized gains on available-for-sale securities	(10,199		)	(29,600		)
FHLB stock dividend	(1,247		)	(1,230		)
Other	(3,561		)	—
Deferred tax liabilities (1)	(82,683		)	(81,720		)
Net deferred tax assets (1)	$	73,941		$	45,979

(1)

Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in qualified affordable housing projects (ASU 2014-01). See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.

At December 31, 2015 and 2014, federal net operating loss carryforwards totaled $10 million and $16 million, respectively. State net operating loss carryforwards totaled $2 million and $6 million as of December 31, 2015 and 2014, respectively. Our foreign net operating loss carryforwards totaled $4 million and $13 million at December 31, 2015 and 2014, respectively. These net operating loss carryforwards expire at various dates beginning in 2019. A portion of our net operating loss carryforwards will be subject to provisions of the tax law that limits the use of losses that existed at the time there is a change in control of an enterprise. At December 31, 2015, the amount of our federal net operating loss carryforwards subject to these limitations was $5 million. At December 31, 2015, none of our state net operating loss carryforwards are subject to these limitations.

Currently, we believe that it is more likely than not that the benefit from these net operating loss carryforwards, which are associated with our former eProsper business unit, part of SVB Analytics, and our UK operations, will not be realized in the near term due to uncertainties in the timing of future profitability in those businesses. In recognition of this, our valuation allowance is $5 million on the deferred tax assets related to these net operating loss carryforwards and research and development credits at December 31, 2015. We believe it is more likely than not that the remaining deferred tax assets will be realized through recovery of taxes previously paid and/or future taxable income. Therefore, no valuation allowance was provided for the remaining deferred tax assets.

At December 31, 2015, our unrecognized tax benefit was $3 million, the recognition of which would reduce our income tax expense by $2 million. We do not expect that our unrecognized tax benefit will materially change in the next 12 months.

A summary of changes in our unrecognized tax benefit (including interest and penalties) in 2015 is as follows:



(Dollars in thousands)	Reconciliation of Unrecognized Tax Benefit			Interest & Penalties			Total
Balance at December 31, 2014	$	3,397		$	100		$	3,497
Additions for tax positions for current year	1,208			—			1,208
Additions for tax positions for prior years	—			228			228
Reduction for tax positions for prior years	(1,228		)	(22		)	(1,250		)
Lapse of the applicable statute of limitations	(20		)	(5		)	(25		)
Balance at December 31, 2015	$	3,357		$	301		$	3,658

Related Parties	12 Months Ended
Related Parties	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Parties	Related Parties During 2015, the Bank made loans to related parties, including certain companies in which certain of our directors or their affiliated venture funds are beneficial owners of ten percent or more of the equity securities of such companies. Such loans: (a) were made in the ordinary course of business; (b) were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other non-related persons; and (c) did not involve more than the normal risk of collectability or present other unfavorable features. Additionally, we also provide real estate secured loans to eligible employees through our EHOP. For additional details, see Note 9—"Loans and Allowance for Loan Losses" of the "Notes to the Consolidated Financial Statements" under Part II, Item 8 of this report.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Compensation and Retirement Disclosure [Abstract]

Employee Compensation and Benefit Plans

12 Months Ended

Dec. 31, 2015

Employee Compensation and Benefit Plans

Our employee compensation and benefit plans include: (i) Incentive Compensation Plan; (ii) Direct Drive Incentive Compensation Plan; (iii) Retention Program; (iv) Warrant Incentive Plan; (v) Deferred Compensation Plan; (vi) 401(k) and ESOP; (vii) EHOP; (viii) 2006 Incentive Plan; and (ix) ESPP. The 2006 Incentive Plan and the ESPP are described in Note 4–“Share-Based Compensation.”

A summary of expenses incurred under certain employee compensation and benefit plans for 2015, 2014 and 2013 is as follows:



	Year ended December 31,
(Dollars in thousands)	2015		2014		2013
Incentive Compensation Plan	$	97,565	$	78,014	$	66,232
Direct Drive Incentive Compensation Plan	21,930		20,153		22,941
Retention Program	1,996		1,792		2,577
Warrant Incentive Plan	9,110		3,926		5,818
Deferred Compensation Plan	2,404		2,458		2,650
SVBFG 401(k) Plan	13,809		11,996		11,277
SVBFG ESOP	8,585		6,691		7,429

Incentive Compensation Plan

Our Incentive Compensation Plan (“ICP”) is an annual cash incentive plan that rewards performance based on our financial results and other performance criteria. Awards are made based on company performance, the employee's target bonus level, and management's assessment of individual employee performance.

Direct Drive Incentive Compensation Plan

The Direct Drive Incentive Compensation Plan (“Direct Drive”) is an annual sales cash incentive program. Awards are based on sales teams' performance to predetermined financial targets and other company/individual performance criteria. Actual awards for each sales team member under Direct Drive are based on: (i) the actual results and financial performance with respect to the incentive gross profit targets; (ii) the sales team payout targets; and (iii) the sales team member's sales position and team payout allocation.

Retention Program

The Retention Program (“RP”) is a long-term incentive plan that allows designated employees to share directly in our investment success. Plan participants were granted an interest in the distributions of gains from certain designated investments made by us during the applicable year. Specifically, participants share in: (i) returns from designated investments made by us, including investments in certain venture capital and private equity funds, debt funds, and direct equity investments in companies; (ii) income realized from the exercise of, and the subsequent sale of shares obtained through the exercise of, warrants held by us; and (iii) other designated amounts as determined by us. Since 2009, no new participants have been added and no new investments have been designated to the plan.

Warrant Incentive Plan

The Warrant Incentive Plan provides individual and team awards to those employees who negotiate warrants on our behalf. Designated participants, as determined by the Company, share in the cash proceeds received by the Company from the exercise of equity warrant assets.

Deferred Compensation Plan

Under the Deferred Compensation Plan (the “DC Plan”), eligible employees may elect to defer up to 50 percent of their base salary and/or up to 100 percent of any eligible bonus payment to which they are entitled, for a period of 12 consecutive months, beginning January 1 and ending December 31. Any amounts deferred under the DC Plan will be invested and administered by us (or such person we designate). We do not match employee deferrals to the DC Plan. From time to time, we may also offer deferred special retention incentives under this plan to key plan participants. The deferred incentives are eligible for investment in the DC Plan during the retention qualifying period.

Voluntary deferrals under the DC Plan were $3.7 million $3.9 million and $3.6 million in 2015, 2014 and 2013, respectively. As of December 31, 2015, special retention incentives totaled $11.5 million. The DC Plan overall, had investment losses of $0.1 million in 2015, gains of $1.4 million in 2014 and gains of $3.1 million in 2013.

401(k) and ESOP

The 401(k) Plan and ESOP, collectively referred to as the “Plan”, is a combined 401(k) tax-deferred savings plan and employee stock ownership plan in which all regular U.S. employees are eligible to participate.

Employees participating in the 401(k) Plan are allowed to contribute up to 75 percent of their pre-tax pay as defined in the Plan, up to the maximum annual amount allowable under federal income tax regulations of $18,000 for the year 2015 and $17,500 for 2014 and 2013. We match the employee's contributions dollar-for-dollar, up to 5 percent of the employee's pre-tax pay as defined in the Plan. Our matching contributions vest immediately. The amount of salary deferred, up to the allowed maximum, is not subject to federal or state income taxes at the time of deferral.

Discretionary ESOP contributions, based on our company performance, are made by us to all eligible individuals employed by us on the last day of the fiscal year. We may elect to contribute cash or our common stock (or a combination of cash and stock), in an amount not exceeding 10 percent of the employee's eligible pay earned in the fiscal year. The ESOP contributions vest in equal annual increments over a participant's first five years of service (thereafter, all subsequent ESOP contributions are fully vested).

EHOP

The EHOP is a benefit plan that provides for the issuance of mortgage loans at favorable interest rates to eligible employees. Eligible employees may apply for a fixed-rate mortgage for their primary residence, which is due and payable in either five or seven years and is based on amortization over a 30 year period. Applicants must qualify for a loan through the normal mortgage review and approval process, which is typical of industry standards. The maximum loan amount generally cannot be greater than 80 percent of the lesser of the purchase price or the appraised value. The interest rate on the loan is written at the then market rate for five year (5/1) or seven year (7/1) mortgage loans as determined by us. However, provided that the applicant continues to meet all the eligibility requirements, including employment, the actual rate charged to the borrower shall be up to 2 percent below the market rate. The loan rate shall not be less than the greater of either the jumbo conforming market rate (corresponding to the maturity of the loan) or the monthly Applicable Federal Rate for medium-term loans as published by the Internal Revenue Service. The loan rate will be fixed at the time of approval and locked in for 30 days.

The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

Disclosure Off Balance Sheet Arrangements Guarantees And Other Commitments Additional Information [Abstract]

Off-Balance Sheet Arrangements, Guarantees and Other Commitments

12 Months Ended

Dec. 31, 2015

Off-Balance Sheet Arrangements, Guarantees and Other Commitments

Operating Leases

We are obligated under a number of noncancelable operating leases for premises and equipment that expire at various dates, through 2030, and in most instances, include options to renew or extend at market rates and terms. Such leases may provide for periodic adjustments of rentals during the term of the lease based on changes in various economic indicators. The following table presents minimum future payments under noncancelable operating leases as of December 31, 2015:



Year ended December 31, (dollars in thousands)	Amount
2016	$	21,260
2017	21,056
2018	22,743
2019	23,256
2020	20,667
2021 and thereafter	79,428
Net minimum operating lease payments	$	188,410

Rent expense for premises and equipment leased under operating leases totaled $21.9 million, $20.3 million and $16.3 million in 2015, 2014 and 2013, respectively.

Commitments to Extend Credit

A commitment to extend credit is a formal agreement to lend funds to a client as long as there is no violation of any condition established in the agreement. Such commitments generally have fixed expiration dates, or other termination clauses, and usually require a fee paid by the client upon us issuing the commitment. The following table summarizes information related to our commitments to extend credit at December 31, 2015 and 2014, respectively:



	December 31,
(Dollars in thousands)	2015		2014
Loan commitments available for funding: (1)
Fixed interest rate commitments	$	1,312,734	$	1,591,408
Variable interest rate commitments	12,822,461		11,860,039
Total loan commitments available for funding	14,135,195		13,451,447
Commercial and standby letters of credit (2)	1,479,164		1,254,338
Total unfunded credit commitments	$	15,614,359	$	14,705,785
Commitments unavailable for funding (3)	$	2,026,532	$	1,868,489
Maximum lending limits for accounts receivable factoring arrangements (4)	1,006,404		1,044,548
Reserve for unfunded credit commitments (5)	34,415		36,419


(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)	Represents commitments which are currently unavailable for funding due to clients failing to meet all collateral, compliance and financial covenants under loan commitment agreements.


(4)	We extend credit under accounts receivable factoring arrangements when our clients’ sales invoices are deemed creditworthy under existing underwriting practices.


(5)	Our reserve for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit.

Our potential exposure to credit loss for commitments to extend credit, in the event of nonperformance by the other party to the financial instrument, is the contractual amount of the available unused loan commitment. We use the same credit approval and monitoring process in extending credit commitments as we do in making loans. The actual liquidity needs and the credit risk that we have experienced have historically been lower than the contractual amount of commitments to extend credit because a significant portion of these commitments expire without being drawn upon. We evaluate each potential borrower and the necessary collateral on an individual basis. The type of collateral varies, but may include real property, intellectual property, bank deposits, or business and personal assets. The credit risk associated with these commitments is considered in the reserve for unfunded credit commitments.

Commercial and Standby Letters of Credit

Commercial and standby letters of credit represent conditional commitments issued by us on behalf of a client to guarantee the performance of the client to a third party when certain specified future events have occurred. Commercial letters of credit are issued primarily for inventory purchases by a client and are typically short-term in nature. We provide two types of standby letters of credit: performance and financial standby letters of credit. Performance standby letters of credit are issued to guarantee the performance of a client to a third party when certain specified future events have occurred and are primarily used to support performance instruments such as bid bonds, performance bonds, lease obligations, repayment of loans, and past due notices. Financial standby letters of credit are conditional commitments issued by us to guarantee the payment by a client to a third party (beneficiary) and are primarily used to support many types of domestic and international payments. These standby letters of credit have fixed expiration dates and generally require a fee to be paid by the client at the time we issue the commitment. Fees generated from these standby letters of credit are recognized in noninterest income over the commitment period using the straight-line method.

The credit risk involved in issuing letters of credit is essentially the same as that involved with extending credit commitments to clients, and accordingly, we use a credit evaluation process and collateral requirements similar to those for credit commitments. Our standby letters of credit often are cash secured by our clients. The actual liquidity needs and the credit risk that we have experienced historically have been lower than the contractual amount of letters of credit issued because a significant portion of these conditional commitments expire without being drawn upon.

The table below summarizes our commercial and standby letters of credit at December 31, 2015. 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 thousands)	Expires In One Year or Less		Expires After One Year		Total Amount Outstanding		Maximum Amount of Future Payments
Financial standby letters of credit	$	1,324,632	$	85,790	$	1,410,422	$	1,410,422
Performance standby letters of credit	56,599		6,877		63,476		63,476
Commercial letters of credit	5,266		—		5,266		5,266
Total	$	1,386,497	$	92,667	$	1,479,164	$	1,479,164

Deferred fees related to financial and performance standby letters of credit were $10 million at December 31, 2015 and $8 million at December 31, 2014. At December 31, 2015, collateral in the form of cash of $652 million and available-for-sale securities of $0.5 million were available to us to reimburse losses, if any, under financial and performance standby letters of credit.

Commitments to Invest in Venture Capital and Private Equity Funds

We make commitments to invest in venture capital and private equity funds, which in turn make investments generally in, or in some cases make loans to, 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 generally call most of the capital commitments over 5 to 7 years; however in certain cases, the funds may not call 100% of committed capital over the life of the fund. 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 December 31, 2015:



Our Ownership in Venture Capital and Private Equity Funds (dollars in thousands)	SVBFG Capital Commitments		SVBFG Unfunded Commitments		SVBFG Ownership of each Fund (4)
Silicon Valley BancVentures, LP	$	6,000	$	270	10.7	%
SVB Capital Partners II, LP (1)	1,200		162		5.1
SVB Capital Shanghai Yangpu Venture Capital Fund	894		—		6.8
SVB Strategic Investors Fund, LP	15,300		688		12.6
SVB Strategic Investors Fund II, LP	15,000		1,050		8.6
SVB Strategic Investors Fund III, LP	15,000		1,275		5.9
SVB Strategic Investors Fund IV, LP	12,239		2,325		5.0
Strategic Investors Fund V Funds	515		142		Various
SVB Capital Preferred Return Fund, LP	12,688		—		20.0
SVB Capital—NT Growth Partners, LP	24,670		1,340		33.0
Other private equity fund (2)	9,338		—		58.2
Debt funds (equity method accounting)	58,283		—		Various
Other fund investments (3)	298,890		13,319		Various
Total	$	470,017	$	20,571


(1)	Our ownership includes direct ownership of 1.3 percent and indirect ownership of 3.8 percent through our investment in SVB Strategic Investors Fund II, LP.


(2)	Our ownership includes direct ownership of 41.5 percent and indirect ownership interests of 12.6 percent and 4.1 percent in the fund through our ownership interest of SVB Capital - NT Growth Partners, LP and SVB Capital Preferred Return Fund, LP, respectively.


(3)	Represents commitments to 273 funds (primarily venture capital funds) where our ownership interest is generally less than 5 percent of the voting interests of each such fund.


(4)	We are subject to the Volcker Rule which restricts or limits us from sponsoring or having ownership interests in “covered” funds including venture capital and private equity funds. See “Business - Supervision and Regulation” under Part I, Item 1 in this report.

The following table details the amounts 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) at December 31, 2015:



Limited Partnership (Dollars in thousands)	Unfunded Commitments
SVB Strategic Investors Fund, LP	$	2,250
SVB Capital Preferred Return Fund, LP	1,514
SVB Capital—NT Growth Partners, LP	3,285
Total	$	7,049

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value Measurements

Our available-for-sale securities, derivative instruments and certain non-marketable and other securities are financial instruments recorded at fair value on a recurring basis. We make estimates regarding valuation of assets and liabilities measured at fair value in preparing our consolidated financial statements. We disclose our method and approach for fair value measurements of assets and liabilities in Note 2-“Summary of Significant Accounting Policies”.

The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2015:



(Dollars in thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2015
Assets
Available-for-sale securities:
U.S. Treasury securities	$	11,678,035	$	—	$	—	$	11,678,035
U.S. agency debentures	—		2,690,029		—		2,690,029
Residential mortgage-backed securities:
Agency-issued collateralized mortgage obligations - fixed rate	—		1,399,279		—		1,399,279
Agency-issued collateralized mortgage obligations - variable rate	—		607,936		—		607,936
Equity securities	4,517		952		—		5,469
Total available-for-sale securities	11,682,552		4,698,196		—		16,380,748
Non-marketable and other securities (fair value accounting):
Non-marketable securities:
Venture capital and private equity fund investments measured at net asset value (1)	—		—		—		152,237
Other venture capital investments (2)	—		—		2,040		2,040
Other securities (2)	548		—		—		548
Total non-marketable and other securities (fair value accounting)	548		—		2,040		154,825
Other assets:
Interest rate swaps	—		2,768		—		2,768
Foreign exchange forward and option contracts	—		31,237		—		31,237
Equity warrant assets	—		1,937		135,168		137,105
Client interest rate derivatives	—		3,973		—		3,973
Total assets	$	11,683,100	$	4,738,111	$	137,208	$	16,710,656
Liabilities
Foreign exchange forward and option contracts	$	—	$	26,353	$	—	$	26,353
Client interest rate derivatives	—		4,384		—		4,384
Total liabilities	$	—	$	30,737	$	—	$	30,737

(1)

In accordance with the accounting standard (ASU 2015-07, Fair Value Measurement (Topic 820)), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.


(2)	Included in Level 1 and Level 3 assets are $0.4 million and $1.8 million, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.

The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2014:



(Dollars in thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Assets
Available-for-sale securities:
U.S. Treasury securities	$	7,302,273	$	—	$	—	$	7,302,273
U.S. agency debentures	—		3,561,556		—		$	3,561,556
Residential mortgage-backed securities:
Agency-issued collateralized mortgage obligations - fixed rate	—		1,884,843		—		1,884,843
Agency-issued collateralized mortgage obligations - variable rate	—		784,475		—		784,475
Equity securities	4,290		3,218		—		7,508
Total available-for-sale securities	7,306,563		6,234,092		—		13,540,655
Non-marketable and other securities (fair value accounting):
Non-marketable securities:
Venture capital and private equity fund investments measured at net asset value (1)	—		—		—		1,130,882
Other venture capital investments (2)	—		—		71,204		71,204
Other securities (2)	108,251		—		—		108,251
Total non-marketable and other securities (fair value accounting)	108,251		—		71,204		1,310,337
Other assets:
Interest rate swaps	—		4,609		—		4,609
Foreign exchange forward and option contracts	—		34,231		—		34,231
Equity warrant assets	—		1,906		114,698		116,604
Client interest rate derivatives	—		2,546		—		2,546
Total assets	$	7,414,814	$	6,277,384	$	185,902	$	15,008,982
Liabilities
Foreign exchange forward and option contracts	$	—	$	28,363	$	—	$	28,363
Client interest rate derivatives	—		2,748		—		2,748
Total liabilities	$	—	$	31,111	$	—	$	31,111

(1)

In accordance with the accounting standard (ASU 2015-07, Fair Value Measurement (Topic 820)), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.


(2)	Included in Level 1 and Level 3 assets are $100 million and $69 million, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.

The following table presents additional information about Level 3 assets measured at fair value on a recurring basis for 2015, 2014 and 2013, respectively:



(Dollars in thousands)	Beginning Balance		Total Realized and Unrealized Gains, net Included in Income		Purchases		Sales			Issuances		Distributions and Other Settlements			Transfers Into Level 3		Transfers Out of Level 3			Ending Balance
Year ended December 31, 2015:
Non-marketable and other securities (fair value accounting):
Other venture capital investments (1)	$	3,291	$	1,192	$	—	$	(2,356	)	$	—	$	(87	)	$	—	$	—		$	2,040
Total non-marketable and other securities (fair value accounting) (2)	3,291		1,192		—		(2,356		)	—		(87		)	—		—			2,040
Other assets:
Equity warrant assets (3)	114,698		71,402		—		(61,044		)	12,471		63			—		(2,422		)	135,168
Total assets	$	117,989	$	72,594	$	—	$	(63,400	)	$	12,471	$	(24	)	$	—	$	(2,422	)	$	137,208
Year ended December 31, 2014:
Non-marketable and other securities (fair value accounting):
Other venture capital investments	$	32,839	$	12,793	$	51,407	$	(20,362	)	$	—	$	(5,347	)	$	—	$	(126	)	$	71,204
Other securities (fair value accounting)	319,249		103,864		—		(46,840		)	—		3,863			—		(380,136		)	—
Total non-marketable and other securities (fair value accounting) (2)	352,088		116,657		51,407		(67,202		)	—		(1,484		)	—		(380,262		)	71,204
Other assets:
Equity warrant assets (3)	99,891		71,516		—		(70,875		)	15,541		345			—		(1,720		)	114,698
Total assets	$	451,979	$	188,173	$	51,407	$	(138,077	)	$	15,541	$	(1,139	)	$	—	$	(381,982	)	$	185,902
Year ended December 31, 2013:
Non-marketable and other securities (fair value accounting):
Other venture capital investments	$	127,091	$	5,745	$	2,712	$	(1,224	)	$	—	$	(97,924	)	$	—	$	(3,561	)	$	32,839
Other securities (fair value accounting)	—		222,368		—		—			—		96,881			—		—			319,249
Total non-marketable and other securities (fair value accounting) (2)	127,091		228,113		2,712		(1,224		)	—		(1,043		)	—		(3,561		)	352,088
Other assets:
Equity warrant assets (3)	66,129		22,929		—		(16,680		)	10,540		98			24,217		(7,342		)	99,891
Total assets	$	193,220	$	251,042	$	2,712	$	(17,904	)	$	10,540	$	(945	)	$	24,217	$	(10,903	)	$	451,979


(1)	Beginning balance was adjusted to conform with our adoption of the new accounting standards (ASU 2015-02), Amendments to the Consolidation Analysis (Topic 820).


(2)	Unrealized gains are recorded on the line item “gains on investment securities, net”, a component of noninterest income.


(3)	Realized and unrealized gains are recorded on the line item “gains on derivative instruments, net”, a component of noninterest income.

The following table presents the amount of unrealized gains (losses) included in earnings (which is inclusive of noncontrolling interest) attributable to Level 3 assets still held at December 31, 2015 and December 31, 2014, respectively:



	Year ended December 31,
(Dollars in thousands)	2015			2014
Non-marketable and other securities (fair value accounting):
Other venture capital investments (1)	$	(177	)	$	3,044
Other assets:
Equity warrant assets (2)	32,576			36,516
Total unrealized gains, net	$	32,399		$	39,560
Unrealized (losses) gains attributable to noncontrolling interests	$	(158	)	$	2,914


(1)	Unrealized gains are recorded on the line item “gains on investment securities, net”, a component of noninterest income.


(2)	Unrealized gains are recorded on the line item “gains on derivative instruments, net”, a component of noninterest income.

The extent to which any unrealized gains will become realized is subject to a variety of factors, including, among other things, the expiration of current sales restrictions to which these securities are subject, the actual sales of securities and the timing of such actual sales.

The following table presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurements at December 31, 2015 and 2014. We have not included in this table our venture capital and private equity fund investments (fair value accounting) as we use net asset value per share (as obtained from the general partners of the investments) as a practical expedient to determine fair value.



(Dollars in thousands)	Fair Value		Valuation Technique	Significant Unobservable Inputs	Weighted Average
December 31, 2015:
Other venture capital investments (fair value accounting)	$	2,040	Private company equity pricing	(1)	(1)
Equity warrant assets (public portfolio)	1,786		Modified Black-Scholes option pricing model	Volatility	38.1	%
				Risk-Free interest rate	2.1
				Sales restrictions discount (2)	18.0
Equity warrant assets (private portfolio)	133,382		Modified Black-Scholes option pricing model	Volatility	36.0
				Risk-Free interest rate	1.1
				Marketability discount (3)	16.6
				Remaining life assumption (4)	45.0
December 31, 2014:
Other venture capital investments (fair value accounting)	$	71,204	Private company equity pricing	(1)	(1)
Equity warrant assets (public portfolio)	1,681		Modified Black-Scholes option pricing model	Volatility	42.6	%
				Risk-Free interest rate	1.7
				Sales restrictions discount (2)	17.8
Equity warrant assets (private portfolio)	113,017		Modified Black-Scholes option pricing model	Volatility	38.3
				Risk-Free interest rate	0.9
				Marketability discount (3)	20.0
				Remaining life assumption (4)	45.0

(1)

In determining the fair value of our other venture capital investment portfolio, we evaluate a variety of factors related to each underlying private portfolio company including, but not limited to, actual and forecasted results, cash position, recent or planned transactions and market comparable companies. Additionally, we have ongoing communication with the portfolio companies and venture capital fund managers, to determine whether there is a material change in fair value. These factors are specific to each portfolio company and a weighted average or range of values of the unobservable inputs is not meaningful.


(2)	We adjust quoted market prices of public companies which are subject to certain sales restrictions. Sales restriction discounts generally range from 10 percent to 20 percent depending on the duration of the sales restrictions which typically range from 3 to 6 months.

(3)

Our marketability discount is applied to all private company warrants to account for a general lack of liquidity due to the private nature of the associated underlying company. The quantitative measure used is based on long-run averages and is influenced over time by various factors, including market conditions. On a quarterly basis, a sensitivity analysis is performed on our marketability discount.

(4)

We adjust the contractual remaining term of private company warrants based on our best estimate of the actual remaining life, which we determine by utilizing historical data on cancellations and exercises. At December 31, 2015, the weighted average contractual remaining term was 5.7 years, compared to our estimated remaining life of 2.6 years. On a quarterly basis, a sensitivity analysis is performed on our remaining life assumption.

During 2015, 2014 and 2013 there were no transfers between Level 2 and Level 1. During 2015, there were no transfers in our other venture capital investments from Level 3 to Level 2. Transfers of our non-marketable and other securities from Level 3 to Level 2 for 2014 and 2013 included $380.1 million and $3.6 million, respectively, as a result of the expiration of lock-up, and other sales restrictions on certain of our other securities and venture capital investments. During 2013, a new sales restriction discount was applied to the valuation of public equity warrant assets, which were subject to certain sales restrictions. The application of this discount resulted in a transfer of $24.2 million of public equity warrant assets from Level 2 to Level 3.

All other transfers from Level 3 to Level 2 during 2015, 2014 and 2013 were due to the transfer of equity warrant assets from our private portfolio to our public portfolio (see our Level 3 reconciliation above). All amounts reported as transfers represent the fair value as of the date of the change in circumstances that caused the transfer.

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

Net long-lived assets held-for-sale

The fair value of assets held-for-sale is estimated by their net realizable value, which represents the potential sales price less costs to sell. Valuation techniques utilized are significant assumptions not observable in the market, accordingly, we classify these assets as Level 3. At December 31, 2014, the carrying value and fair value of our net long-lived assets held-for-sale was $44.3 million and $45.4 million, respectively. The sale of our assets held-for-sale was completed on April 13, 2015 and no held-for-sale operations remain at December 31, 2015.

Financial Instruments not Carried at Fair Value

FASB guidance over financial instruments requires that we disclose estimated fair values for our financial instruments not carried at fair value. Fair value estimates, methods and assumptions, set forth below for our financial instruments, are made solely to comply with these requirements.

Fair values are based on estimates or calculations at the transaction level using present value techniques in instances where quoted market prices are not available. Because broadly traded markets do not exist for many of our financial instruments, the fair value calculations attempt to incorporate the effect of current market conditions at a specific time. The aggregation of the fair value calculations presented herein does not represent, and should not be construed to represent, the underlying value of the Company.

The following describes the methods and assumptions used in estimating the fair values of financial instruments for which carrying value approximates fair value and assets and liabilities measured at fair value on a nonrecurring basis and excludes financial instruments already recorded at fair value as described above.

Financial Instruments for which Carrying Value Approximates Fair Value

Certain financial instruments that are not carried at fair value on the Consolidated Balance Sheets are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and cash equivalents; FHLB and FRB stock; accrued interest receivable; short-term borrowings; short-term time deposits; and accrued interest payable. In addition, U.S. GAAP requires that the fair value of deposit liabilities with no stated maturity (i.e., demand, savings and certain money market deposits) be equal to their carrying value; recognition of the inherent funding value of these instruments is not permitted.

Estimated Fair Values of Financial Instruments Not Recorded at Fair Value on a Recurring Basis

Held-to-Maturity Securities

Held-to-maturity securities include similar investments held in our available-for-sale securities portfolio and are valued using the same methodologies. All securities included in our held-to-maturity securities portfolio are valued using Level 2 inputs. See Level 2 fair value measurements in Note 2- “Summary of Significant Accounting Policies” for significant inputs used in the valuation of our held-to-maturity investment securities.

Non-Marketable (Cost and Equity Method Accounting)

Non-marketable securities includes other investments (equity method accounting), venture capital and private equity fund investments (cost method accounting) and other venture capital investments (cost method accounting). Other investments (equity method accounting) includes our investment in SPD-SVB, our joint venture bank in China. At this time, the carrying value of our investment in SPD-SVB is a reasonable estimate of fair value. The fair value of the remaining other investments (equity method accounting) and the fair value of venture capital and private equity fund investments (cost method accounting) and other venture capital investments (cost method accounting) is based on financial information obtained from the investee or obtained from the fund investments’ or debt fund investments’ respective general partners. For private company investments, estimated fair value is based on consideration of a range of factors including, but not limited to, the price at which the investment was acquired, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, exit strategies, and financing transactions subsequent to the acquisition of the investment. For our fund investments, we utilize the net asset value per share as obtained from the general partners of the investments. We adjust the net asset value per share for differences between our measurement date and the date of the fund investment’s net asset value by using the most recently available financial information from the investee general partner, for example September 30^th, for our December 31^st consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period.

Loans

The fair value of fixed and variable rate loans is estimated by discounting contractual cash flows using rates that reflect current pricing for similar loans and the projected forward yield curve. This method is not based on the exit price concept of fair value required under ASC 820, Fair Value Measurements and Disclosures.

Long-Term Deposits

The fair value of long-term time deposits is estimated by discounting the cash flows using our cost of borrowings and the projected forward yield curve over their remaining contractual term.

Long-Term Debt

The fair value of long-term debt is generally based on quoted market prices, when available, or is estimated based on calculations utilizing third party pricing services and current market spread, price indications from reputable dealers or observable market prices of the underlying instrument(s), whichever is deemed more reliable. Also included in the estimated fair value of our 6.05% Subordinated Notes are amounts related to hedge accounting associated with the notes.

Off-Balance Sheet Financial Instruments

The fair value of net available commitments to extend credit is estimated based on the average amount we would receive or pay to execute a new agreement with identical terms and pricing, while taking into account the counterparties’ credit standing.

Letters of credit are carried at their fair value, which is equivalent to the residual premium or fee at December 31, 2015 and 2014. Commitments to extend credit and letters of credit typically result in loans with a market interest rate if funded.

The following fair value hierarchy table presents the estimated fair values of our financial instruments that are not carried at fair value at December 31, 2015 and 2014:



			Estimated Fair Value
(Dollars in thousands)	Carrying Amount		Total		Level 1		Level 2		Level 3
December 31, 2015:
Financial assets:
Cash and cash equivalents	$	1,503,257	$	1,503,257	$	1,503,257	$	—	$	—
Held-to-maturity securities	8,790,963		8,758,622		—		8,758,622		—
Non-marketable securities (cost and equity method accounting) not measured at net asset value	114,795		117,172		—		—		117,172
Non-marketable securities (cost and equity method) accounting measured at net asset value (1)	250,970		364,799		—		—		—
Net commercial loans	14,763,302		14,811,588		—		—		14,811,588
Net consumer loans	1,761,155		1,737,960		—		—		1,737,960
FHLB and FRB stock	56,991		56,991		—		—		56,991
Accrued interest receivable	107,604		107,604		—		107,604		—
Financial liabilities:
Short-term FHLB advances	638,000		638,000		638,000		—		—
Federal funds purchased	135,000		135,000		135,000		—		—
Other short-term borrowings	1,900		1,900		1,900		—		—
Non-maturity deposits (2)	39,072,297		39,072,297		39,072,297		—		—
Time deposits	70,479		70,347		—		70,347		—
3.50% Senior Notes	346,667		333,648		—		333,648		—
5.375% Senior Notes	347,016		384,216		—		384,216		—
6.05% Subordinated Notes (3)	48,350		49,820		—		49,820		—
7.0% Junior Subordinated Debentures	54,669		52,905		—		52,905		—
Accrued interest payable	12,058		12,058		—		12,058		—
Off-balance sheet financial assets:
Commitments to extend credit	—		26,483		—		—		26,483
December 31, 2014:
Financial assets:
Cash and cash equivalents	$	1,796,062	$	1,796,062	$	1,796,062	$	—	$	—
Held-to-maturity securities	7,421,042		7,415,656		—		7,415,656		—
Non-marketable securities (cost and equity method accounting) not measured at net asset value	108,221		107,451		—		—		107,451
Non-marketable securities (cost and equity method) accounting measured at net asset value (1)	188,427		283,119		—		—		—
Net commercial loans	12,947,869		13,082,487		—		—		13,082,487
Net consumer loans	1,271,048		1,247,336		—		—		1,247,336
FHLB and FRB stock	53,496		53,496		—		—		53,496
Accrued interest receivable	94,180		94,180		—		94,180		—
Financial liabilities:
Other short-term borrowings	7,781		7,781		7,781		—		—
Non-maturity deposits (2)	34,215,372		34,215,372		34,215,372		—		—
Time deposits	128,127		128,107		—		128,107		—
5.375% Senior Notes	346,477		392,616		—		392,616		—
6.05% Subordinated Notes (3)	50,040		53,537		—		53,537		—
7.0% Junior Subordinated Debentures	54,845		52,990		—		52,990		—
Accrued interest payable	6,998		6,998		—		6,998		—
Off-balance sheet financial assets:
Commitments to extend credit	—		29,097		—		—		29,097


(1)	In accordance with the accounting standard (ASU 2015-07, Fair Value Measurement (Topic 820)), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.


(2)	Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits.


(3)	At December 31, 2015 and 2014, included in the carrying value and estimated fair value of our 6.05% Subordinated Notes was $2.8 million and $4.6 million, respectively, related to hedge accounting associated with the notes.

Investments in Entities that Calculate Net Asset Value Per Share

FASB guidance over certain fund investments requires that we disclose the fair value of funds, significant investment strategies of the investees, redemption features of the investees, restrictions on the ability to sell investments, estimate of the period of time over which the underlying assets are expected to be liquidated by the investee, and unfunded commitments related to the investments.

Our investments in debt funds and venture capital and private equity fund investments generally cannot be redeemed. Alternatively, we expect distributions, if any, to be received primarily through IPOs and M&A activity of the underlying assets of the fund. We currently do not have any plans to sell any of these fund investments. If we decide to sell these investments in the future, the investee fund’s management must approve of the buyer before the sale of the investments can be completed. The fair values of the fund investments have been estimated using the net asset value per share of the investments, adjusted for any differences between our measurement date and the date of the fund investment’s net asset value by using the most recently available financial information from the investee general partner, for example September 30^th, for our December 31^st consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period.

The following table is a summary of the estimated fair values of these investments and remaining unfunded commitments for each major category of these investments as of December 31, 2015:



(Dollars in thousands)	Carrying Amount		Fair Value		Unfunded Commitments
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments (1)	$	152,237	$	152,237	$	7,049
Non-marketable securities (equity method accounting):
Venture capital and private equity fund investments (2)	85,705		85,705		4,954
Debt funds (2)	21,970		23,080		—
Other investments (2)	22,619		22,619		886
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments (2)	120,676		233,395		10,636
Total	$	403,207	$	517,036	$	23,525

(1)

Venture capital and private equity fund investments within non-marketable securities (fair value accounting) include investments made by our managed funds of funds and one of our direct venture funds. These investments represent investments in venture capital and private equity funds that invest primarily in U.S. and global technology and life science/healthcare companies. Included in the fair value and unfunded commitments of fund investments under fair value accounting are $108 million and $5 million, respectively, attributable to noncontrolling interests. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of terms of the funds.

(2)

Venture capital and private equity fund investments, debt funds, and other fund investments within non-marketable securities (equity and cost method accounting) include funds that invest in or lend money to primarily U.S. and global technology and life science/healthcare companies. It is estimated that we will receive distributions from the funds over the next 10 to 13 years, depending on the age of the funds and any potential extensions of the terms of the funds. It is estimated that we will receive distributions from the funds over the next 10 to 13 years, depending on the age of the funds and any potential extensions of the terms of the funds.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Regulatory Matters

12 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

Regulatory Matters

The Company and the Bank are subject to various regulatory capital adequacy requirements administered by the Federal Reserve Board and the California Department of Business Oversight - Division of Financial Institutions. The Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) required that the federal regulatory agencies adopt regulations defining five capital categories for banks: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements.

Quantitative measures, established by the regulators to ensure capital adequacy, require that SVB Financial Group and the Bank maintain minimum ratios (set forth in the table below) of capital to risk-weighted assets. Effective January 1, 2015, SVB Financial Group and the Bank became subject to a new regulatory capital measure called "Common Equity Tier 1" and a related regulatory capital ratio of CET 1 to risk-weighted assets implemented under "Basel III" regulatory capital reforms and changes required by the Dodd-Frank Act.

There are three categories of capital under the new Basel III standards; 1) CET 1, 2) additional tier 1 and 3) tier 2. CET 1 includes common stock plus related surplus and retained earnings, less certain deductions. Additional tier 1 capital includes qualifying preferred stock and trust preferred securities, less certain deductions. Additional tier 1, together with CET 1, equal total tier 1 capital. Tier 2 capital includes primarily certain qualifying unsecured subordinated debt and qualifying allowances for loan and lease losses. Tier 1 capital, together with Tier 2 capital, equal total capital.

As of December 31, 2015, both SVB Financial and the Bank were considered “well-capitalized” for regulatory purposes under existing capital guidelines. There are no conditions or events since that date that management believes would have a material impact on that capital category.

The following table presents the capital ratios for the Company and the Bank under federal regulatory guidelines, compared to the minimum regulatory capital requirements for an adequately capitalized and a well-capitalized depository institution, as of December 31, 2015 and 2014:



	Capital Ratios						Capital Amounts
(Dollars in thousands)	Actual		Well Capitalized Minimum		Adequately Capitalized Minimum		Actual		Well Capitalized Minimum		Adequately Capitalized Minimum
December 31, 2015: (1)
CET 1 risk-based capital (2):
SVB Financial	12.28	%	6.5	%	4.5	%	$	3,183,206	$	1,684,774	$	1,166,382
Bank	12.52		6.5		4.5		3,043,435		1,579,568		1,093,547
Tier 1 risk-based capital:
SVB Financial	12.83		8.0		6.0		3,325,245		2,073,567		1,555,176
Bank	12.52		8.0		6.0		3,043,435		1,944,083		1,458,063
Total risk-based capital:
SVB Financial	13.84		10.0		8.0		3,586,466		2,591,959		2,073,567
Bank	13.60		10.0		8.0		3,304,537		2,430,104		1,944,083
Tier 1 leverage:
SVB Financial	7.63		N/A		4.0		3,325,245		N/A		1,743,555
Bank	7.09		5.0		4.0		3,043,435		2,147,532		1,718,026
December 31, 2014:
Tier 1 risk-based capital:
SVB Financial	12.91	%	6.0	%	4.0	%	$	2,808,948	$	1,305,726	$	870,484
Bank	11.09		6.0		4.0		2,379,991		1,287,473		858,315
Total risk-based capital:
SVB Financial	13.92		10.0		8.0		3,030,150		2,176,210		1,740,968
Bank	12.12		10.0		8.0		2,600,011		2,145,788		1,716,630
Tier 1 leverage:
SVB Financial	7.74		N/A		4.0		2,808,948		N/A		1,450,927
Bank	6.64		5.0		4.0		2,379,991		1,793,264		1,434,611


(1)	Ratios as of December 31, 2015 reflect the adoption of the Basel III Capital Rules in effect beginning January 1, 2015. Ratios for prior periods represent the previous capital rules under Basel I.


(2)	Effective January 1, 2015, CET 1 is a new ratio requirement under the Basel III Capital Rules and represents, common stock, plus related surplus and retained earnings, plus limited amounts of minority interest in the form of common stock, less certain regulatory deductions, divided by total risk-weighted assets.

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958574-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=35709795&loc=d3e65071-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958575-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958573-112826

Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

We have three reportable segments for management reporting purposes: Global Commercial Bank, SVB Private Bank and SVB Capital. The results of our operating segments are based on our internal management reporting process.

Our operating segments’ primary source of revenue is from net interest income, which is primarily the difference between interest earned on loans, net of funds transfer pricing and interest paid on deposits, net of FTP. Accordingly, our segments are reported using net interest income, net of FTP. FTP is an internal measurement framework designed to assess the financial impact of a financial institution’s sources and uses of funds. It is the mechanism by which an earnings credit is given for deposits raised, and an earnings charge is made for funded loans. FTP is calculated at an instrument level based on account characteristics.

We also evaluate performance based on provision for loan losses, noninterest income and noninterest expense, which are presented as components of segment operating profit or loss. In calculating each operating segment’s noninterest expense, we consider the direct costs incurred by the operating segment as well as certain allocated direct costs. As part of this review, we allocate certain corporate overhead costs to a corporate account. We do not allocate income taxes to our segments. Additionally, our management reporting model is predicated on average asset balances; therefore, period-end asset balances are not presented for segment reporting purposes. Changes in an individual client’s primary relationship designation have resulted, and in the future may result, in the inclusion of certain clients in different segments in different periods.

Unlike financial reporting, which benefits from the comprehensive structure provided by GAAP, our internal management reporting process is highly subjective, as there is no comprehensive, authoritative guidance for management reporting. Our management reporting process measures the performance of our operating segments based on our internal operating structure, which is subject to change from time to time, and is not necessarily comparable with similar information for other financial services companies. For reporting purposes, SVB Financial Group has three operating segments for which we report our financial information (for further description of these reportable segments, refer to "Business–Business Overview" under Part I, Item 1 of this report):


•	Global Commercial Bank is comprised of results from the following:

◦

Our Commercial Bank products and services are provided by the Bank and its subsidiaries to commercial clients in the technology, life science/healthcare and private equity/venture capital industries. The Bank provides solutions to the financial needs of commercial clients, through credit, global treasury management, foreign exchange, global trade finance, and other services. It serves clients within the United States, as well as non-U.S. clients in key international innovation markets. In addition, the Bank and its subsidiaries offer a variety of investment services and solutions to its clients that enable them to effectively manage their assets.


◦	Our Private Equity Division provides banking products and services primarily to our private equity and venture capital clients.


◦	SVB Wine provides banking products and services to our premium wine industry clients, including vineyard development loans.


◦	SVB Analytics provides equity valuation services to companies and private equity/venture capital firms.


◦	Debt Fund Investments is comprised of our investments in certain debt funds in which we are a strategic investor.

•

SVB Private Bank is the private banking division of the Bank, which provides a range of personal financial solutions for consumers. Our clients are primarily private equity/venture capital professionals and executive leaders of the innovation companies they support. We offer a customized suite of private banking services, including mortgages, home equity lines of credit, restricted stock purchase loans, capital call lines of credit and other secured and unsecured lending, as well as cash and wealth management services.

•

SVB Capital is the venture capital investment arm of SVBFG, which focuses primarily on funds management. SVB Capital manages funds (primarily venture capital funds) on behalf of third party limited partners and, on a more limited basis, SVB Financial Group. The SVB Capital family of funds is comprised of direct venture funds that invest in companies and funds of funds that invest in other venture capital funds. SVB Capital generates income for the Company primarily from investment returns (including carried interest) and management fees.

The summary financial results of our operating segments are presented along with a reconciliation to our consolidated results.

Our segment information for 2015, 2014 and 2013 is as follows:



(Dollars in thousands)	Global Commercial Bank (1)			SVB Private Bank			SVB Capital (1)			Other Items (2)			Total
Year ended December 31, 2015
Net interest income	$	853,890		$	44,412		$	3		$	108,120		$	1,006,425
Provision for loan losses	(94,915		)	(2,714		)	—			—			(97,629		)
Noninterest income	272,862			2,011			70,857			127,064			472,794
Noninterest expense (3)	(568,685		)	(11,892		)	(14,699		)	(182,740		)	(778,016		)
Income before income tax expense (4)	$	463,152		$	31,817		$	56,161		$	52,444		$	603,574
Total average loans, net of unearned income	$	12,973,626		$	1,592,065		$	—		$	197,250		$	14,762,941
Total average assets (5)	38,813,529			1,433,694			337,884			261,270			40,846,377
Total average deposits	34,996,888			1,108,411			—			188,063			36,293,362
Year ended December 31, 2014
Net interest income	$	742,274		$	31,427		$	58		$	82,836		$	856,595
Provision for loan losses	(58,622		)	(864		)	—			—			(59,486		)
Noninterest income	203,474			1,494			58,058			309,213			572,239
Noninterest expense (3)	(504,606		)	(10,571		)	(12,668		)	(179,335		)	(707,180		)
Income before income tax expense (4)	$	382,520		$	21,486		$	45,448		$	212,714		$	662,168
Total average loans, net of unearned income	$	10,129,474		$	1,155,992		$	—		$	217,475		$	11,502,941
Total average assets (5)	30,306,338			1,149,804			320,129			1,185,665			32,961,936
Total average deposits	27,364,246			890,062			—			66,517			28,320,825
Year ended December 31, 2013
Net interest income	$	641,384		$	26,701		$	20		$	29,239		$	697,344
(Provision for) reduction of loan losses	(65,290		)	1,597			—			—			(63,693		)
Noninterest income	202,404			1,209			75,037			394,556			673,206
Noninterest expense (3)	(425,230		)	(9,195		)	(10,737		)	(170,082		)	(615,244		)
Income before income tax expense (4)	$	353,268		$	20,312		$	64,320		$	253,713		$	691,613
Total average loans, net of unearned income	$	8,287,039		$	919,221		$	—		$	145,118		$	9,351,378
Total average assets (5)	21,411,836			954,831			289,328			552,174			23,208,169
Total average deposits	19,072,608			524,398			—			22,188			19,619,194


(1)	Global Commercial Bank’s and SVB Capital’s components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. Noncontrolling interest is included within "Other Items".

(2)

The "Other Items" column reflects the adjustments necessary to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Net interest income is primarily attributable to interest earned from our fixed income investment portfolio. Noninterest income is primarily attributable to noncontrolling interests and gains on equity warrant assets. Noninterest expense primarily consists of expenses associated with corporate support functions such as finance, human resources, marketing, legal and other expenses. Noninterest income in 2015 was reduced due to our adoption of new accounting guidance related to our consolidated variable interest entities (ASU 2015-02). Amounts prior to January 1, 2015 have not been revised for the adoption of this guidance. See Note 2— "Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 of this report for additional details.


(3)	The Global Commercial Bank segment includes direct depreciation and amortization of $19.6 million, $20.9 million and $18.7 million for 2015, 2014 and 2013, respectively.


(4)	The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates.


(5)	Total average assets equal the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for each segment to reconcile the results to the consolidated financial statements prepared in conformity with GAAP.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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