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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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Delaware
|
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91-1962278
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification No.)
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3003 Tasman Drive, Santa Clara, California
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95054-1191
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common stock, par value $0.001 per share
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NASDAQ Global Select Market
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Junior subordinated debentures issued by SVB Capital II and the guarantee with respect thereto
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NASDAQ Global Select Market
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Documents Incorporated by Reference
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Parts of Form 10-K
Into Which
Incorporated
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Definitive proxy statement for the Company's 2015 Annual Meeting of Stockholders to be filed within 120 days of the end of the fiscal year ended December 31, 2014
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Part III
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Page
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PART I.
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV.
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Item 15.
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•
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Projections of our net interest income, noninterest income, earnings per share, noninterest expenses (including professional services, compliance, compensation and other costs), cash flows, balance sheet positions, capital expenditures, liquidity and capitalization or other financial items
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•
|
Descriptions of our strategic initiatives, plans or objectives for future operations, including pending sales or acquisitions
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•
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Forecasts of private equity/venture capital funding and investment levels
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•
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Forecasts of future interest rates, economic performance, and income from investments
|
•
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Forecasts of expected levels of provisions for loan losses, loan growth and client funds
|
•
|
Descriptions of assumptions underlying or relating to any of the foregoing
|
•
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Market and economic conditions, including the interest rate environment, and the associated impact on us
|
•
|
The credit profile and credit quality of our loan portfolio and volatility of our levels of nonperforming assets and charge-offs
|
•
|
The adequacy of our allowance for loan losses and the need to make provisions for loan losses for any period
|
•
|
The borrowing needs of our clients
|
•
|
The sufficiency of our capital and liquidity positions
|
•
|
The levels of loans, deposits and client investment fund balances
|
•
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The performance of our portfolio investments; the general condition of the public and private equity and mergers and acquisitions markets and their impact on our investments, including equity warrant assets, venture capital and private equity funds and direct equity investments
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•
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Our overall investment plans and strategies; the realization, timing, valuation and performance of our equity or other investments
|
•
|
The levels of public offerings, mergers and acquisitions and venture capital investment activity of our clients that may impact the borrowing needs of our clients
|
•
|
The occurrence of fraudulent activity, including breaches of our information security or cyber security-related incidents
|
•
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Business disruptions and interruptions due to natural disasters and other external events
|
•
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The impact on our reputation and business from our interactions with business partners, counterparties, service providers and other third parties
|
•
|
Expansion of our business internationally
|
•
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The impact of legal requirements and regulations limiting or restricting our activities or resulting in higher costs, including the Volcker rule
|
•
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The impact of lawsuits and claims
|
•
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Changes in accounting standards
|
•
|
The levels of equity capital available to our client or portfolio companies
|
•
|
Our ability to maintain or increase our market share, including through successfully implementing our business strategy and undertaking new business initiatives
|
•
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Other factors as discussed in “Risk Factors” under Part I, Item 1A in this report
|
ITEM 1.
|
BUSINESS
|
•
|
Our
SVB Accelerator
practice focuses on serving our
“
emerging
”
or
“
early stage
”
clients. These clients are generally in the start-up or early stages of their life cycles. They are typically privately-held and funded by friends and family,
“
seed
”
or
“
angel
”
investors, or have gone through an initial round of venture capital financing. They are typically engaged in research and development, have little or no revenue and may have only brought a few products or services to market. SVB Accelerator clients tend to have annual revenues below $5 million, with many being pre-revenue companies.
|
•
|
Our
SVB Growth
practice serves our
“
mid-stage
”
and
“
late-stage
”
clients. These clients are in the intermediate or later stages of their life cycles and are generally privately-held, and many are dependent on venture capital for funding. Some of these clients are in the more advanced stages of their life cycles and may be publicly held or poised to become publicly held. Our SVB Growth clients generally have a solid or more established product or service offering in the market, with more meaningful or considerable revenue. They also may be expanding globally. SVB Growth clients tend to have annual revenues between $5 million and $75 million.
|
•
|
Our
SVB Corporate Finance
practice serves primarily our large corporate clients, which are more mature and established companies. These clients are generally publicly-held or large privately-held companies, have a more sophisticated product or service offering in the market, with significant revenue. They also may be expanding globally. SVB Corporate Finance clients tend to have annual revenues over $75 million.
|
•
|
Require periodic reports and such additional information as the Federal Reserve may require in its discretion;
|
•
|
Require the maintenance of certain levels of capital and, under the Dodd-Frank Act, limit the ability of bank holding companies to pay dividends or bonuses unless their capital levels exceed the capital conservation buffer;
|
•
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Restrict the ability of bank holding companies to service debt or to receive dividends or other distributions from their subsidiary banks;
|
•
|
Require prior approval for senior executive officer and director changes under certain circumstances;
|
•
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Require that bank holding companies serve as a source of financial and managerial strength to their banks and commit resources as necessary to support their banks. A bank holding company’s failure to meet its obligations to serve as a source of strength to its subsidiary banks will generally be considered by the Federal Reserve to be an unsafe and unsound banking practice or a violation of Federal Reserve regulations or inconsistent with applicable statutory standards, or all of the foregoing;
|
•
|
Terminate an activity or terminate control of or liquidate or divest certain subsidiaries, affiliates or investments if the Federal Reserve believes the activity or the control of the subsidiary or affiliate constitutes a serious risk to the financial safety, soundness or stability of any bank subsidiary;
|
•
|
Regulate provisions of certain bank holding company debt, including the authority to impose interest ceilings and reserve requirements on such debt and require prior approval to purchase or redeem our securities in certain situations; and
|
•
|
Approve acquisitions and mergers with banks and consider certain competitive, management, financial, financial stability and other factors in granting these approvals. Similar California and other state banking agency approvals may also be required.
|
•
|
Capital standards applicable to bank holding companies may be no less stringent than those generally applied to insured depository institutions;
|
•
|
Restrictions on dividends and other discretionary payments if capital levels do not exceed the capital conservation buffer;
|
•
|
Annual stress tests for financial entities, including the Bank;
|
•
|
Additional risk management and other prudential requirements for larger bank holding companies with $50 billion or greater in total consolidated assets (such requirements may have the effect of establishing new best practices standards for bank holding companies below $50 billion in total consolidated assets, such as SVB Financial);
|
•
|
Restrictions on a banking institution’s ability to sponsor, invest in or lend to certain funds, including venture capital, hedge and private equity funds;
|
•
|
Repeal of the federal prohibition (Regulation Q) on the payment of interest on demand deposits, including business checking accounts, and made permanent the $250,000 limit for federal deposit insurance;
|
•
|
The establishment of the CFPB with responsibility for promulgating and enforcing regulations designed to protect consumers’ financial interests and prohibit unfair, deceptive and abusive acts and practices by financial institutions;
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•
|
The CFPB to directly examine those financial institutions with $10 billion or more in assets, such as SVB Financial, for compliance with the regulations promulgated by the CFPB;
|
•
|
Limits, or imposes significant burdens and compliance and other costs on, certain activities traditionally conducted by banking organizations, such as originating and securitizing mortgage loans and other financial assets, arranging and participating in swap and derivative transactions, proprietary trading and investing in private equity and other funds and restrictions on debit charge interchange fees; and
|
•
|
The establishment of new compensation restrictions and standards regarding the time, manner and form of compensation given to key executives and other personnel receiving incentive compensation, including documentation and governance, proxy access by stockholders, deferral and claw-back requirements.
|
•
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Require affirmative action to correct any conditions resulting from any violation or practice;
|
•
|
Require prior approval for senior executive officer and director changes;
|
•
|
Direct an increase in capital and the maintenance of specific minimum capital ratios which may preclude the Bank from being deemed well capitalized for regulatory purposes;
|
•
|
Restrict the Bank’s growth geographically, by products and services, or by mergers and acquisitions;
|
•
|
Enter into informal or formal enforcement orders, including memoranda of understanding, written agreements and consent or cease and desist orders to take corrective action and enjoin unsafe and unsound practices;
|
•
|
Restrict or prohibit the Bank from paying dividends or making other distributions to SVB Financial;
|
•
|
Remove officers and directors and assess civil monetary penalties; and
|
•
|
Take possession of and close and liquidate the Bank.
|
•
|
4.5% CET1 to risk-weighted assets
|
•
|
6.0% Tier 1 capital to risk-weighted assets
|
•
|
8.0% Total capital to risk-weighted assets
|
•
|
4% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”)
|
ITEM 1A.
|
RISK FACTORS
|
•
|
actual or anticipated quarterly fluctuations in our operating results and financial condition;
|
•
|
changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts;
|
•
|
failure to meet analysts’ revenue or earnings estimates;
|
•
|
speculation in the press or investment community;
|
•
|
strategic actions by us or our competitors;
|
•
|
actions by institutional stockholders;
|
•
|
fluctuations in the stock price and operating results of our competitors;
|
•
|
general market conditions and, in particular, developments related to market conditions for the financial services industry;
|
•
|
proposed or adopted regulatory changes or developments;
|
•
|
anticipated or pending investigations, proceedings or litigation that involve or affect us; or
|
•
|
domestic and international economic factors unrelated to our performance.
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
Item 5.
|
MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
|
2014
|
|
2013
|
||||||||||||
Three months ended:
|
|
Low
|
|
High
|
|
Low
|
|
High
|
||||||||
March 31
|
|
$
|
101.65
|
|
|
$
|
135.00
|
|
|
$
|
56.84
|
|
|
$
|
71.15
|
|
June 30
|
|
100.30
|
|
|
130.17
|
|
|
65.59
|
|
|
83.91
|
|
||||
September 30
|
|
102.36
|
|
|
119.16
|
|
|
79.54
|
|
|
91.46
|
|
||||
December 31
|
|
91.54
|
|
|
118.72
|
|
|
86.06
|
|
|
106.99
|
|
*
|
$100 invested on
12/31/09
in stock & index-including reinvestment of dividends.
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
||||||||||||
SVB Financial Group
|
|
$
|
100.00
|
|
|
$
|
127.34
|
|
|
$
|
114.47
|
|
|
$
|
134.35
|
|
|
$
|
251.70
|
|
|
$
|
278.61
|
|
S&P 500
|
|
100.00
|
|
|
115.06
|
|
|
117.49
|
|
|
136.30
|
|
|
180.44
|
|
|
205.14
|
|
||||||
NASDAQ Composite
|
|
100.00
|
|
|
117.61
|
|
|
118.70
|
|
|
139.00
|
|
|
196.83
|
|
|
223.74
|
|
||||||
NASDAQ Bank
|
|
100.00
|
|
|
115.72
|
|
|
104.50
|
|
|
122.51
|
|
|
173.89
|
|
|
182.21
|
|
Item 6.
|
SELECTED CONSOLIDATED FINANCIAL DATA
|
|
|
Year ended December 31,
|
||||||||||||||||||
(Dollars in thousands, except per share data and ratios)
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Income statement summary:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
856,595
|
|
|
$
|
697,344
|
|
|
$
|
617,864
|
|
|
$
|
526,277
|
|
|
$
|
418,135
|
|
Provision for loan losses
|
|
(59,486
|
)
|
|
(63,693
|
)
|
|
(44,330
|
)
|
|
(6,101
|
)
|
|
(44,628
|
)
|
|||||
Noninterest income
|
|
572,239
|
|
|
673,206
|
|
|
335,546
|
|
|
382,332
|
|
|
247,530
|
|
|||||
Noninterest expense
|
|
(716,871
|
)
|
|
(621,680
|
)
|
|
(545,998
|
)
|
|
(500,628
|
)
|
|
(422,818
|
)
|
|||||
Income before income tax expense
|
|
652,477
|
|
|
685,177
|
|
|
363,082
|
|
|
401,880
|
|
|
198,219
|
|
|||||
Income tax expense
|
|
(173,762
|
)
|
|
(139,058
|
)
|
|
(113,269
|
)
|
|
(119,087
|
)
|
|
(61,402
|
)
|
|||||
Net income before noncontrolling interests
|
|
478,715
|
|
|
546,119
|
|
|
249,813
|
|
|
282,793
|
|
|
136,817
|
|
|||||
Net income attributable to noncontrolling interests
|
|
(214,790
|
)
|
|
(330,266
|
)
|
|
(74,710
|
)
|
|
(110,891
|
)
|
|
(41,866
|
)
|
|||||
Net income attributable to SVBFG
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
|
$
|
175,103
|
|
|
$
|
171,902
|
|
|
$
|
94,951
|
|
Net income available to common stockholders
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
|
$
|
175,103
|
|
|
$
|
171,902
|
|
|
$
|
94,951
|
|
Common share summary:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per common share—basic
|
|
$
|
5.39
|
|
|
$
|
4.76
|
|
|
$
|
3.96
|
|
|
$
|
4.00
|
|
|
$
|
2.27
|
|
Earnings per common share—diluted
|
|
5.31
|
|
|
4.70
|
|
|
3.91
|
|
|
3.94
|
|
|
2.24
|
|
|||||
Book value per common share
|
|
55.33
|
|
|
42.93
|
|
|
41.02
|
|
|
36.07
|
|
|
30.15
|
|
|||||
Weighted average shares outstanding—basic
|
|
48,931
|
|
|
45,309
|
|
|
44,242
|
|
|
43,004
|
|
|
41,774
|
|
|||||
Weighted average shares outstanding—diluted
|
|
49,662
|
|
|
45,944
|
|
|
44,764
|
|
|
43,637
|
|
|
42,478
|
|
|||||
Year-end balance sheet summary:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities
|
|
$
|
13,540,655
|
|
|
$
|
11,986,821
|
|
|
$
|
11,343,177
|
|
|
$
|
10,536,046
|
|
|
$
|
7,917,967
|
|
Held-to-maturity securities
|
|
7,421,042
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loans, net of unearned income
|
|
14,384,276
|
|
|
10,906,386
|
|
|
8,946,933
|
|
|
6,970,082
|
|
|
5,521,737
|
|
|||||
Total assets
|
|
39,344,640
|
|
|
26,417,189
|
|
|
22,766,123
|
|
|
19,968,894
|
|
|
17,527,761
|
|
|||||
Deposits
|
|
34,343,499
|
|
|
22,472,979
|
|
|
19,176,452
|
|
|
16,709,536
|
|
|
14,336,941
|
|
|||||
Short-term borrowings
|
|
7,781
|
|
|
5,080
|
|
|
166,110
|
|
|
—
|
|
|
37,245
|
|
|||||
Long-term debt
|
|
453,443
|
|
|
455,216
|
|
|
457,762
|
|
|
603,648
|
|
|
1,209,260
|
|
|||||
SVBFG stockholders' equity
|
|
2,817,762
|
|
|
1,966,270
|
|
|
1,830,555
|
|
|
1,569,392
|
|
|
1,274,350
|
|
|||||
Average balance sheet summary:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities
|
|
$
|
12,907,135
|
|
|
$
|
10,598,879
|
|
|
$
|
10,685,564
|
|
|
$
|
9,350,381
|
|
|
$
|
5,347,327
|
|
Held-to-maturity securities
|
|
3,696,417
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loans, net of unearned income
|
|
11,502,941
|
|
|
9,351,378
|
|
|
7,558,928
|
|
|
5,815,071
|
|
|
4,435,911
|
|
|||||
Total assets
|
|
32,964,195
|
|
|
23,210,747
|
|
|
21,311,172
|
|
|
18,670,499
|
|
|
14,858,236
|
|
|||||
Deposits
|
|
28,320,825
|
|
|
19,619,194
|
|
|
17,910,088
|
|
|
15,568,801
|
|
|
12,028,327
|
|
|||||
Short-term borrowings
|
|
6,264
|
|
|
27,018
|
|
|
70,802
|
|
|
16,994
|
|
|
49,972
|
|
|||||
Long-term debt
|
|
454,474
|
|
|
456,484
|
|
|
518,112
|
|
|
796,823
|
|
|
968,378
|
|
|||||
SVBFG stockholders' equity
|
|
2,523,235
|
|
|
1,927,674
|
|
|
1,735,281
|
|
|
1,448,398
|
|
|
1,230,569
|
|
|||||
Capital ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SVBFG total risk-based capital ratio
|
|
13.92
|
%
|
|
13.13
|
%
|
|
14.05
|
%
|
|
13.95
|
%
|
|
17.35
|
%
|
|||||
SVBFG tier 1 risk-based capital ratio
|
|
12.91
|
|
|
11.94
|
|
|
12.79
|
|
|
12.62
|
|
|
13.63
|
|
|||||
SVBFG tier 1 leverage ratio
|
|
7.74
|
|
|
8.31
|
|
|
8.06
|
|
|
7.92
|
|
|
7.96
|
|
|||||
SVBFG tangible common equity to tangible assets (1)
|
|
7.16
|
|
|
7.44
|
|
|
8.04
|
|
|
7.86
|
|
|
7.27
|
|
|||||
SVBFG tangible common equity to risk-weighted assets (1)
|
|
12.95
|
|
|
11.63
|
|
|
13.53
|
|
|
13.25
|
|
|
13.54
|
|
|||||
Bank total risk-based capital ratio
|
|
12.12
|
|
|
11.32
|
|
|
12.53
|
|
|
12.33
|
|
|
15.48
|
|
|||||
Bank tier 1 risk-based capital ratio
|
|
11.09
|
|
|
10.11
|
|
|
11.24
|
|
|
10.96
|
|
|
11.61
|
|
|||||
Bank tier 1 leverage ratio
|
|
6.64
|
|
|
7.04
|
|
|
7.06
|
|
|
6.87
|
|
|
6.82
|
|
|||||
Bank tangible common equity to tangible assets (1)
|
|
6.39
|
|
|
6.59
|
|
|
7.41
|
|
|
7.18
|
|
|
6.61
|
|
|||||
Bank tangible common equity to risk-weighted assets (1)
|
|
11.21
|
|
|
9.87
|
|
|
12.08
|
|
|
11.75
|
|
|
11.88
|
|
|||||
Average SVBFG stockholders' equity to average assets
|
|
7.65
|
|
|
8.31
|
|
|
8.14
|
|
|
7.76
|
|
|
8.28
|
|
|||||
Selected financial results:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
0.80
|
%
|
|
0.93
|
%
|
|
0.82
|
%
|
|
0.92
|
%
|
|
0.64
|
%
|
|||||
Return on average common SVBFG stockholders' equity
|
|
10.46
|
|
|
11.20
|
|
|
10.09
|
|
|
11.87
|
|
|
7.72
|
|
|||||
Net interest margin
|
|
2.81
|
|
|
3.29
|
|
|
3.19
|
|
|
3.08
|
|
|
3.08
|
|
|||||
Gross loan charge-offs to average total gross loans
|
|
0.37
|
|
|
0.45
|
|
|
0.44
|
|
|
0.41
|
|
|
1.15
|
|
|||||
Net loan charge-offs (recoveries) to average total gross loans
|
|
0.32
|
|
|
0.33
|
|
|
0.31
|
|
|
(0.02
|
)
|
|
0.77
|
|
|||||
Nonperforming assets as a percentage of total assets
|
|
0.10
|
|
|
0.20
|
|
|
0.17
|
|
|
0.18
|
|
|
0.22
|
|
|||||
Allowance for loan losses as a percentage of total gross loans
|
|
1.14
|
|
|
1.30
|
|
|
1.23
|
|
|
1.28
|
|
|
1.48
|
|
|
(1)
|
See “Management's Discussion and Analysis of Financial Condition and Results of Operations-Capital Resources-Capital Ratios” under Part II, Item 7 in this report for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets.
|
▪
|
Growth in our lending business with record high average loan balances of
$11.5 billion
, an increase of
$2.2 billion
, or
23.0
percent. Period-end loan balances were
$14.4 billion
, an increase of
$3.5 billion
, or
31.9
percent.
|
▪
|
Average investment securities, excluding non-marketable and other securities, of $16.6 billion, an increase of $6.0 billion, or 56.7 percent. Period-end investment securities, excluding non-marketable and other securities, of $21.0 billion, an increase of $9.0 billion, or 74.9 percent.
|
▪
|
Average deposit balances of
$28.3 billion
, an increase of 8.7 billion, or 44.4 percent. Period-end deposit balances were
$34.3 billion
, an increase of
$11.9 billion
, or
52.8
percent.
|
▪
|
Average total client funds (including both on-balance sheet deposits and off-balance sheet client investment funds) were $58.4 billion, an increase of $14.5 billion, or 33.1 percent. Period-end total client funds were
$66.7 billion
, an increase of
$17.9 billion
, or
36.6
percent.
|
▪
|
Net interest income (fully taxable equivalent basis) of
$858.3 million
, an increase of
$159.2 million
, or 22.8 percent, primarily due to an increase in interest income from fixed income investment securities and loans, attributable to growth in average investment and loan balances of $6.0 billion and
$2.2 billion
, respectively, driven by the strong average deposit growth mentioned above.
|
▪
|
Net interest margin of
2.81
percent, compared to
3.29
percent, primarily reflective of growth in both our loan portfolio as well as our lower-yielding fixed income investment portfolio as a result of the significant growth in deposits and lower overall loan and investment yields.
|
▪
|
Provision for loan losses of
$59.5 million
, compared to
$63.7 million
. The provision of
$59.5 million
in 2014 was primarily driven by $37.0 million in net charge-offs and $36.6 million from period-end loan growth of
$3.5 billion
, offset by a $14.1 million decrease reflective of the improvement in the overall credit quality of the portfolio and lower impaired loan balances.
|
▪
|
Non-GAAP core fee income (deposit service charges, letters of credit fees, credit card fees, lending related fees, client investment fees, and foreign exchange fees) of $
209.6 million
, an increase of $
34.2 million
, or
19.5
percent. This increase was primarily from foreign exchange and credit card fees reflective of increased client activity and transaction volumes. (See the non-GAAP reconciliation under “Results of Operations—Noninterest Income”)
|
▪
|
Net gains on investment securities of $267.0 million ($30.7 million, net of noncontrolling interests) primarily driven by strong distributions from our strategic venture capital fund investments and unrealized valuation adjustments from our managed funds of funds, offset by losses from our available-for-sale equity securities holdings, primarily attributable to the sale of shares of FireEye, Inc. ("FireEye") common stock (acquired through the exercise of certain warrants). (See non-GAAP reconciliation under the section “Results of Operations—Noninterest Income—Gains on Investment Securities, Net”)
|
▪
|
Net gains of $71.0 million from equity warrant assets, an increase of $24.9 million, or 54.0 percent. The increase was primarily driven by healthy IPO and M&A activity resulting in net gains of $29.8 million from the exercise and conversion of public equity warrant assets, including FireEye and Twitter.
|
▪
|
Noninterest expense of
$716.9 million
, an increase of
$95.2 million
, or
15.3
percent. The increase was primarily due to increased compensation and benefits expense, reflective of an increase in average FTEs of 146, or 8.7 percent, as well as market adjustments, and professional services, business development and travel and other client support service expenses to support our continued product offerings and infrastructure.
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands, except per share data and ratios)
|
|
2014
|
|
2013
|
|
% Change
|
||||||
Income Statement:
|
|
|
|
|
|
|
|
|||||
Diluted earnings per share
|
|
$
|
5.31
|
|
|
$
|
4.70
|
|
|
13.0
|
|
%
|
Net income available to common stockholders
|
|
263,925
|
|
|
215,853
|
|
|
22.3
|
|
|
||
Net interest income
|
|
856,595
|
|
|
697,344
|
|
|
22.8
|
|
|
||
Net interest margin
|
|
2.81
|
%
|
|
3.29
|
%
|
|
(48
|
)
|
bps
|
||
Provision for loan losses
|
|
$
|
59,486
|
|
|
$
|
63,693
|
|
|
(6.6
|
)
|
%
|
Noninterest income
|
|
572,239
|
|
|
673,206
|
|
|
(15.0
|
)
|
|
||
Noninterest expense
|
|
716,871
|
|
|
621,680
|
|
|
15.3
|
|
|
||
Non-GAAP core fee income (1)
|
|
209,631
|
|
|
175,475
|
|
|
19.5
|
|
|
||
Non-GAAP net income available to common stockholders (1)
|
|
275,361
|
|
|
215,853
|
|
|
27.6
|
|
|
||
Non-GAAP diluted earnings per common share (1)
|
|
5.54
|
|
|
4.70
|
|
|
17.9
|
|
|
||
Non-GAAP noninterest income, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction (1)
|
|
352,549
|
|
|
330,302
|
|
|
6.7
|
|
|
||
Non-GAAP noninterest expense, net of noncontrolling interests (2)
|
|
698,004
|
|
|
608,966
|
|
|
14.6
|
|
|
||
Balance Sheet:
|
|
|
|
|
|
|
|
|||||
Average available-for-sale-securities
|
|
$
|
12,907,135
|
|
|
$
|
10,598,879
|
|
|
21.8
|
|
%
|
Average held-to-maturity securities (3)
|
|
3,696,417
|
|
|
—
|
|
|
—
|
|
|
||
Average loans, net of unearned income
|
|
11,502,941
|
|
|
9,351,378
|
|
|
23.0
|
|
|
||
Average noninterest-bearing demand deposits
|
|
20,410,887
|
|
|
13,892,006
|
|
|
46.9
|
|
|
||
Average interest-bearing deposits
|
|
7,909,938
|
|
|
5,727,188
|
|
|
38.1
|
|
|
||
Average total deposits
|
|
28,320,825
|
|
|
19,619,194
|
|
|
44.4
|
|
|
||
Earnings Ratios:
|
|
|
|
|
|
|
|
|||||
Return on average assets (4)
|
|
0.80
|
%
|
|
0.93
|
%
|
|
(14.0
|
)
|
%
|
||
Non-GAAP return on average assets (9)
|
|
0.84
|
|
|
0.93
|
|
|
(9.7
|
)
|
|
||
Return on average common SVBFG stockholders’ equity (5)
|
|
10.46
|
|
|
11.20
|
|
|
(6.6
|
)
|
|
||
Non-GAAP return on average common SVBFG stockholders' equity (10)
|
|
10.91
|
|
|
11.20
|
|
|
(2.6
|
)
|
|
||
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|||||
Allowance for loan losses as a percentage of total period-end gross loans
|
|
1.14
|
%
|
|
1.30
|
%
|
|
(16
|
)
|
bps
|
||
Allowance for loan losses for performing loans as a percentage of total gross performing loans
|
|
1.04
|
|
|
1.11
|
|
|
(7
|
)
|
|
||
Gross loan charge-offs as a percentage of average total gross loans (annualized)
|
|
0.37
|
|
|
0.45
|
|
|
(8
|
)
|
|
||
Net loan charge-offs (recoveries) as a percentage of average total gross loans (annualized)
|
|
0.32
|
|
|
0.33
|
|
|
(1
|
)
|
|
||
Capital Ratios:
|
|
|
|
|
|
|
|
|||||
SVBFG total risk-based capital ratio
|
|
13.92
|
%
|
|
13.13
|
%
|
|
79
|
|
bps
|
||
SVBFG tier 1 risk-based capital ratio
|
|
12.91
|
|
|
11.94
|
|
|
97
|
|
|
||
SVBFG tier 1 leverage ratio
|
|
7.74
|
|
|
8.31
|
|
|
(57
|
)
|
|
||
SVBFG tangible common equity to tangible assets (6)
|
|
7.16
|
|
|
7.44
|
|
|
(28
|
)
|
|
||
SVBFG tangible common equity to risk-weighted assets (6)
|
|
12.95
|
|
|
11.63
|
|
|
132
|
|
|
||
Bank total risk-based capital ratio
|
|
12.12
|
|
|
11.32
|
|
|
80
|
|
|
||
Bank tier 1 risk-based capital ratio
|
|
11.09
|
|
|
10.11
|
|
|
98
|
|
|
||
Bank tier 1 leverage ratio
|
|
6.64
|
|
|
7.04
|
|
|
(40
|
)
|
|
||
Bank tangible common equity to tangible assets (6)
|
|
6.39
|
|
|
6.59
|
|
|
(20
|
)
|
|
||
Bank tangible common equity to risk-weighted assets (6)
|
|
11.21
|
|
|
9.87
|
|
|
134
|
|
|
||
Other Ratios:
|
|
|
|
|
|
|
|
|||||
GAAP operating efficiency ratio (7)
|
|
50.17
|
%
|
|
45.36
|
%
|
|
10.6
|
|
%
|
||
Non-GAAP operating efficiency ratio (2)
|
|
57.65
|
|
|
59.16
|
|
|
(2.6
|
)
|
|
||
Book value per common share (8)
|
|
$
|
55.33
|
|
|
$
|
42.93
|
|
|
28.9
|
|
|
Other Statistics:
|
|
|
|
|
|
|
|
|||||
Average full-time equivalent employees
|
|
1,815
|
|
|
1,669
|
|
|
8.7
|
|
%
|
||
Period-end full-time equivalent employees
|
|
1,914
|
|
|
1,704
|
|
|
12.3
|
|
|
|
(1)
|
See “Results of Operations–Noninterest Income” below for a description and reconciliation of non-GAAP core fee income and noninterest income.
|
(2)
|
See “Results of Operations–Noninterest Expense” below for a description and reconciliation of non-GAAP noninterest expense and non-GAAP operating efficiency ratio.
|
(3)
|
Average held-to-maturity securities balance is reflective of the re-designation from available-for-sale to held-to-maturity effective June 1, 2014.
|
(4)
|
Ratio represents consolidated net income available to common stockholders divided by average assets.
|
(5)
|
Ratio represents consolidated net income available to common stockholders divided by average SVBFG stockholders’ equity.
|
(6)
|
See “Capital Resources–Capital Ratios” for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets.
|
(7)
|
The operating efficiency ratio is calculated by dividing total noninterest expense by total net interest income plus noninterest income.
|
(8)
|
Book value per common share is calculated by dividing total SVBFG stockholders’ equity by total outstanding common shares at period-end.
|
(9)
|
Ratio represents consolidated non-GAAP net income available to common stockholders divided by average assets.
|
(10)
|
Ratio represents consolidated non-GAAP net income available to common stockholders divided by average SVBFG stockholders’ equity.
|
|
|
Year ended December 31,
|
||||||
(Dollars in thousands, except per share data and ratios)
|
|
2014
|
|
2013
|
||||
Net income available to common stockholders
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
Less: net losses on SVBIF Sale Transaction (1)
|
|
13,934
|
|
|
—
|
|
||
Tax impact from net losses on SVBIF Sale Transaction
|
|
(5,398
|
)
|
|
—
|
|
||
Tax impact of undistributed earnings of SVBIF
|
|
2,900
|
|
|
—
|
|
||
Non-GAAP net income available to common stockholders
|
|
$
|
275,361
|
|
|
$
|
215,853
|
|
GAAP earnings per common share—diluted
|
|
$
|
5.31
|
|
|
$
|
4.70
|
|
Less: net losses on SVBIF Sale Transaction (1)
|
|
0.28
|
|
|
—
|
|
||
Tax impact from net losses on SVBIF Sale Transaction
|
|
(0.11
|
)
|
|
—
|
|
||
Tax impact of undistributed earnings of SVBIF
|
|
0.06
|
|
|
—
|
|
||
Non-GAAP earnings per common share—diluted
|
|
$
|
5.54
|
|
|
$
|
4.70
|
|
Weighted average diluted common shares outstanding
|
|
49,661,547
|
|
|
45,943,686
|
|
|
|
|
Year ended December 31,
|
||||||
(Dollars in thousands, except ratios)
|
|
2014
|
|
2013
|
||||
Net income available to common stockholders
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
Non-GAAP net income available to common stockholders
|
|
$
|
275,361
|
|
|
$
|
215,853
|
|
Average Assets
|
|
$
|
32,964,195
|
|
|
$
|
23,210,747
|
|
Return on average assets
|
|
0.80
|
%
|
|
0.93
|
%
|
||
Non-GAAP return on average assets
|
|
0.84
|
|
|
0.93
|
|
||
Average SVBFG stockholders' equity
|
|
$
|
2,523,235
|
|
|
$
|
1,927,674
|
|
Return on average SVBFG stockholders' equity
|
|
10.46
|
%
|
|
11.20
|
%
|
||
Non-GAAP return on average SVBFG stockholders' equity
|
|
10.91
|
|
|
11.20
|
|
|
|
December 31,
|
||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||
(Dollars in thousands)
|
|
Total Balance
|
|
Level 3
|
|
Total Balance
|
|
Level 3
|
||||||||
Assets carried at fair value
|
|
$
|
15,008,982
|
|
|
$
|
1,316,784
|
|
|
$
|
13,331,120
|
|
|
$
|
1,314,951
|
|
As a percentage of total assets
|
|
38.1
|
%
|
|
3.3
|
%
|
|
50.5
|
%
|
|
5.0
|
%
|
||||
Liabilities carried at fair value
|
|
$
|
31,111
|
|
|
$
|
—
|
|
|
$
|
14,013
|
|
|
$
|
—
|
|
As a percentage of total liabilities
|
|
0.1
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
—
|
%
|
||||
|
|
Level 1 and 2
|
|
Level 3
|
|
Level 1 and 2
|
|
Level 3
|
||||||||
Percentage of assets measured at fair value
|
|
91.2
|
%
|
|
8.8
|
%
|
|
90.1
|
%
|
|
9.9
|
%
|
|
|
2014 compared to 2013
|
|
2013 compared to 2012
|
||||||||||||||||||||
|
|
Change due to
|
|
Change due to
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities
|
|
$
|
3,117
|
|
|
$
|
(707
|
)
|
|
$
|
2,410
|
|
|
$
|
389
|
|
|
$
|
(480
|
)
|
|
$
|
(91
|
)
|
Fixed income investment portfolio (taxable)
|
|
98,572
|
|
|
(7,363
|
)
|
|
91,209
|
|
|
(1,279
|
)
|
|
9,578
|
|
|
8,299
|
|
||||||
Fixed income investment portfolio (non-taxable)
|
|
—
|
|
|
(100
|
)
|
|
(100
|
)
|
|
(497
|
)
|
|
(61
|
)
|
|
(558
|
)
|
||||||
Loans, net of unearned income
|
|
117,222
|
|
|
(48,481
|
)
|
|
68,741
|
|
|
105,518
|
|
|
(32,460
|
)
|
|
73,058
|
|
||||||
Increase (decrease) in interest income, net
|
|
218,911
|
|
|
(56,651
|
)
|
|
162,260
|
|
|
104,131
|
|
|
(23,423
|
)
|
|
80,708
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NOW deposits
|
|
137
|
|
|
185
|
|
|
322
|
|
|
106
|
|
|
30
|
|
|
136
|
|
||||||
Money market deposits
|
|
4,585
|
|
|
(1,659
|
)
|
|
2,926
|
|
|
2,257
|
|
|
168
|
|
|
2,425
|
|
||||||
Money market deposits in foreign offices
|
|
54
|
|
|
(73
|
)
|
|
(19
|
)
|
|
33
|
|
|
(1
|
)
|
|
32
|
|
||||||
Time deposits
|
|
(47
|
)
|
|
(217
|
)
|
|
(264
|
)
|
|
50
|
|
|
(12
|
)
|
|
38
|
|
||||||
Sweep deposits in foreign offices
|
|
98
|
|
|
(77
|
)
|
|
21
|
|
|
(162
|
)
|
|
(1
|
)
|
|
(163
|
)
|
||||||
Total increase (decrease) in deposits expense
|
|
4,827
|
|
|
(1,841
|
)
|
|
2,986
|
|
|
2,284
|
|
|
184
|
|
|
2,468
|
|
||||||
Short-term borrowings
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
|
(108
|
)
|
|
50
|
|
|
(58
|
)
|
||||||
5.375% Senior Notes
|
|
11
|
|
|
53
|
|
|
64
|
|
|
11
|
|
|
(21
|
)
|
|
(10
|
)
|
||||||
Junior Subordinated Debentures
|
|
(10
|
)
|
|
29
|
|
|
19
|
|
|
(11
|
)
|
|
20
|
|
|
9
|
|
||||||
5.70% Senior Notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(863
|
)
|
|
—
|
|
|
(863
|
)
|
||||||
6.05% Subordinated Notes
|
|
(19
|
)
|
|
70
|
|
|
51
|
|
|
(16
|
)
|
|
(15
|
)
|
|
(31
|
)
|
||||||
Other long-term debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(92
|
)
|
|
—
|
|
|
(92
|
)
|
||||||
Total (decrease) increase in borrowings expense
|
|
(94
|
)
|
|
152
|
|
|
58
|
|
|
(1,079
|
)
|
|
34
|
|
|
(1,045
|
)
|
||||||
Increase (decrease) in interest expense, net
|
|
4,733
|
|
|
(1,689
|
)
|
|
3,044
|
|
|
1,205
|
|
|
218
|
|
|
1,423
|
|
||||||
Increase (decrease) in net interest income
|
|
$
|
214,178
|
|
|
$
|
(54,962
|
)
|
|
$
|
159,216
|
|
|
$
|
102,926
|
|
|
$
|
(23,641
|
)
|
|
$
|
79,285
|
|
•
|
Interest income
for
2014
increased by
$162.3 million
primarily due to:
|
◦
|
A
$91.1 million
increase in interest income on investment securities to
$276.2 million
in 2014, compared to
$185.1 million
in 2013 with the majority of the increase due to a $6.0 billion increase in average balances due to strong deposit growth. Interest income was offset by a decrease in the overall yield on our investment securities portfolio, which decreased 9 basis points to 1.66 percent. Lower reinvestment yields, resulting from a lower overall market rate environment and an increase in purchases of U.S. Treasury securities in 2014 contributed to a decrease in yields of 21 basis points.
|
◦
|
A
$68.7 million
increase in interest income on loans to
$610.9 million
in
2014
, compared to
$542.2 million
in
2013
. This increase was reflective of an increase in average loan balances of $
2.2 billion
, partially offset by a decrease of
49
basis points in the overall yield on our loan portfolio. The decrease in yields was reflective of a continued change in the mix of our overall loan portfolio. Our loan growth in 2014 primarily came from our private equity/venture capital loan portfolio which, on average, tend to have lower yielding loans. Our yields were also impacted by the increased price competition and the overall low market rate environment throughout 2014.
|
•
|
Interest expense
for
2014
increased to $35.3 million, compared to $32.3 million for the comparable 2013 period. The increase in interest expense was primarily from interest-bearing money market deposits of $2.9 million, mainly attributable to growth of
$1.9 billion
in our average money market deposit balances.
|
•
|
Interest income
for
2013
increased by
$80.7 million
primarily due to:
|
◦
|
A
$73.1 million
increase in interest income on loans to
$542.2 million
in
2013
, compared to
$469.1 million
in
2012
. This increase was reflective of an increase in average loan balances of $1.8 billion, partially offset by a decrease of 41 basis points in the overall yield on our loan portfolio. The decrease in yields was reflective of a shift in the mix of our late stage and sponsor-led buyout portfolios from national Prime rate, to LIBOR, indexed loans, in addition to, lower rates on existing and new capital call lines, as a result of increased competition.
|
◦
|
A $7.7 million increase in interest income on fixed income securities to $185.1 million in 2013, compared to $177.3 million in 2012. The increase of $7.7 million was primarily due to:
|
▪
|
An increase of $25.8 million resulting from the decrease in premium amortization expense. Premium amortization expense for 2013 was $29.8 million, compared to $55.6 million in 2012. The decrease in premium amortization expense was reflective of higher treasury rates during 2013 resulting in a slow-down of prepayments during 2013 as compared to 2012. Average 5-year, and 10-year, treasury bill rates were higher by 41, and 55, basis points, respectively, for 2013 as compared to 2012.
|
▪
|
A decrease of $16.3 million as a result of a decline in yields and $1.6 million reflective of lower volume resulting from the strategic timing of the investment of excess cash during the low interest rate environment throughout most of 2013.
|
▪
|
A decrease of $17.9 million in interest income, excluding premium amortization expense, for the year ended 2013 compared to 2012.
|
•
|
Interest expense
for
2013
increased by $1.4 million primarily due to:
|
◦
|
An increase in interest expense from interest-bearing deposits of $2.5 million, primarily due to an $831 million increase in average money market deposits at a slightly higher yield in 2013 compared to 2012.
|
◦
|
A decrease in interest expense of $1.0 million related to our long-term debt, primarily due to the maturity and repayment of our 5.70% Senior Notes of $141.0 million on June 1, 2012.
|
|
|
Year ended December 31,
|
|||||||||||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|||||||||||||||
Interest-earning assets
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1)
|
|
$
|
2,465,036
|
|
|
$
|
6,464
|
|
|
0.26
|
%
|
|
$
|
1,309,770
|
|
|
$
|
4,054
|
|
|
0.31
|
%
|
|
$
|
1,191,805
|
|
|
$
|
4,145
|
|
|
0.35
|
%
|
Investment Securities: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
|
12,873,327
|
|
|
195,698
|
|
|
1.52
|
|
|
10,516,177
|
|
|
180,162
|
|
|
1.71
|
|
|
10,594,533
|
|
|
171,863
|
|
|
1.62
|
|
||||||
Non-taxable (3)
|
|
33,808
|
|
|
2,040
|
|
|
6.03
|
|
|
82,702
|
|
|
4,925
|
|
|
5.96
|
|
|
91,031
|
|
|
5,483
|
|
|
6.02
|
|
||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
|
3,646,836
|
|
|
75,673
|
|
|
2.08
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-taxable (3)
|
|
49,581
|
|
|
2,785
|
|
|
5.62
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total loans, net of unearned income (4) (5)
|
|
11,502,941
|
|
|
610,945
|
|
|
5.31
|
|
|
9,351,378
|
|
|
542,204
|
|
|
5.80
|
|
|
7,558,928
|
|
|
469,146
|
|
|
6.21
|
|
||||||
Total interest-earning assets
|
|
30,571,529
|
|
|
893,605
|
|
|
2.92
|
|
|
21,260,027
|
|
|
731,345
|
|
|
3.44
|
|
|
19,436,297
|
|
|
650,637
|
|
|
3.35
|
|
||||||
Cash and due from banks
|
|
232,890
|
|
|
|
|
|
|
274,272
|
|
|
|
|
|
|
303,156
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
(134,044
|
)
|
|
|
|
|
|
(122,489
|
)
|
|
|
|
|
|
(102,068
|
)
|
|
|
|
|
||||||||||||
Other assets (6)
|
|
2,293,820
|
|
|
|
|
|
|
1,798,937
|
|
|
|
|
|
|
1,673,787
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
32,964,195
|
|
|
|
|
|
|
$
|
23,210,747
|
|
|
|
|
|
|
$
|
21,311,172
|
|
|
|
|
|
|||||||||
Funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW deposits
|
|
$
|
170,299
|
|
|
$
|
801
|
|
|
0.47
|
%
|
|
$
|
135,585
|
|
|
$
|
479
|
|
|
0.35
|
%
|
|
$
|
105,060
|
|
|
$
|
343
|
|
|
0.33
|
%
|
Money market deposits
|
|
5,423,350
|
|
|
9,920
|
|
|
0.18
|
|
|
3,534,466
|
|
|
6,994
|
|
|
0.20
|
|
|
2,703,434
|
|
|
4,569
|
|
|
0.17
|
|
||||||
Money market deposits in foreign offices
|
|
224,675
|
|
|
137
|
|
|
0.06
|
|
|
159,700
|
|
|
156
|
|
|
0.10
|
|
|
125,962
|
|
|
124
|
|
|
0.10
|
|
||||||
Time deposits
|
|
154,698
|
|
|
370
|
|
|
0.24
|
|
|
168,209
|
|
|
634
|
|
|
0.38
|
|
|
154,917
|
|
|
596
|
|
|
0.38
|
|
||||||
Sweep deposits in foreign offices
|
|
1,936,916
|
|
|
886
|
|
|
0.05
|
|
|
1,729,228
|
|
|
865
|
|
|
0.05
|
|
|
2,055,209
|
|
|
1,028
|
|
|
0.05
|
|
||||||
Total interest-bearing deposits
|
|
7,909,938
|
|
|
12,114
|
|
|
0.15
|
|
|
5,727,188
|
|
|
9,128
|
|
|
0.16
|
|
|
5,144,582
|
|
|
6,660
|
|
|
0.13
|
|
||||||
Short-term borrowings
|
|
6,264
|
|
|
3
|
|
|
0.05
|
|
|
27,018
|
|
|
79
|
|
|
0.29
|
|
|
70,802
|
|
|
137
|
|
|
0.19
|
|
||||||
5.375% Senior Notes
|
|
348,313
|
|
|
19,323
|
|
|
5.55
|
|
|
348,094
|
|
|
19,259
|
|
|
5.53
|
|
|
347,886
|
|
|
19,269
|
|
|
5.54
|
|
||||||
Junior Subordinated Debentures
|
|
54,940
|
|
|
3,352
|
|
|
6.10
|
|
|
55,115
|
|
|
3,333
|
|
|
6.05
|
|
|
55,291
|
|
|
3,324
|
|
|
6.01
|
|
||||||
5.70% Senior Notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59,375
|
|
|
863
|
|
|
1.45
|
|
||||||
6.05% Subordinated Notes
|
|
51,221
|
|
|
529
|
|
|
1.03
|
|
|
53,275
|
|
|
478
|
|
|
0.90
|
|
|
55,079
|
|
|
509
|
|
|
0.92
|
|
||||||
Other long-term debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
481
|
|
|
92
|
|
|
19.13
|
|
||||||
Total interest-bearing liabilities
|
|
8,370,676
|
|
|
35,321
|
|
|
0.42
|
|
|
6,210,690
|
|
|
32,277
|
|
|
0.52
|
|
|
5,733,496
|
|
|
30,854
|
|
|
0.54
|
|
||||||
Portion of noninterest-bearing funding sources
|
|
22,200,853
|
|
|
|
|
|
|
15,049,337
|
|
|
|
|
|
|
13,702,801
|
|
|
|
|
|
||||||||||||
Total funding sources
|
|
30,571,529
|
|
|
35,321
|
|
|
0.11
|
|
|
21,260,027
|
|
|
32,277
|
|
|
0.15
|
|
|
19,436,297
|
|
|
30,854
|
|
|
0.16
|
|
||||||
Noninterest-bearing funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
|
20,410,887
|
|
|
|
|
|
|
13,892,006
|
|
|
|
|
|
|
12,765,506
|
|
|
|
|
|
||||||||||||
Other liabilities
|
|
419,043
|
|
|
|
|
|
|
331,343
|
|
|
|
|
|
|
350,610
|
|
|
|
|
|
||||||||||||
SVBFG stockholders’ equity
|
|
2,523,235
|
|
|
|
|
|
|
1,927,674
|
|
|
|
|
|
|
1,735,281
|
|
|
|
|
|
||||||||||||
Noncontrolling interests
|
|
1,240,354
|
|
|
|
|
|
|
849,034
|
|
|
|
|
|
|
726,279
|
|
|
|
|
|
||||||||||||
Portion used to fund interest-earning assets
|
|
(22,200,853
|
)
|
|
|
|
|
|
(15,049,337
|
)
|
|
|
|
|
|
(13,702,801
|
)
|
|
|
|
|
||||||||||||
Total liabilities and total equity
|
|
$
|
32,964,195
|
|
|
|
|
|
|
$
|
23,210,747
|
|
|
|
|
|
|
$
|
21,311,172
|
|
|
|
|
|
|||||||||
Net interest income and margin
|
|
|
|
$
|
858,284
|
|
|
2.81
|
%
|
|
|
|
$
|
699,068
|
|
|
3.29
|
%
|
|
|
|
$
|
619,783
|
|
|
3.19
|
%
|
||||||
Total deposits
|
|
$
|
28,320,825
|
|
|
|
|
|
|
$
|
19,619,194
|
|
|
|
|
|
|
$
|
17,910,088
|
|
|
|
|
|
|||||||||
Reconciliation to reported net interest income
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjustments for taxable equivalent basis
|
|
|
|
(1,689
|
)
|
|
|
|
|
|
(1,724
|
)
|
|
|
|
|
|
(1,919
|
)
|
|
|
||||||||||||
Net interest income, as reported
|
|
|
|
$
|
856,595
|
|
|
|
|
|
|
$
|
697,344
|
|
|
|
|
|
|
$
|
617,864
|
|
|
|
(1)
|
Includes average interest-earning deposits in other financial institutions of
$364 million
,
$191 million
and
$250 million
in
2014
,
2013
and
2012
, respectively. For
2014
,
2013
and
2012
, balances also include
$1.9 billion
,
$1.0 billion
and
$0.7 billion
, respectively, deposited at the FRB, earning interest at the Federal Funds target rate.
|
(2)
|
Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income.
|
(3)
|
Interest income on non-taxable investment securities is presented on a fully taxable-equivalent basis using the federal statutory income tax rate of 35.0 percent for all periods presented.
|
(4)
|
Nonaccrual loans are reflected in the average balances of loans.
|
(5)
|
Interest income includes loan fees of
$97.3 million
,
$84.3 million
and
$76.1 million
in
2014
,
2013
and
2012
, respectively.
|
(6)
|
Average investment securities of
$1.8 billion
,
$1.3 billion
and
$1.3 billion
in
2014
,
2013
and
2012
, respectively, were classified as other assets as they were noninterest-earning assets. These investments primarily consisted of non-marketable and other securities.
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Allowance for loan losses, beginning balance
|
|
$
|
142,886
|
|
|
$
|
110,651
|
|
|
$
|
89,947
|
|
Provision for loan losses
|
|
59,486
|
|
|
63,693
|
|
|
44,330
|
|
|||
Gross loan charge-offs
|
|
(43,168
|
)
|
|
(42,666
|
)
|
|
(33,319
|
)
|
|||
Loan recoveries
|
|
6,155
|
|
|
11,208
|
|
|
9,693
|
|
|||
Allowance for loan losses, ending balance
|
|
$
|
165,359
|
|
|
$
|
142,886
|
|
|
$
|
110,651
|
|
Provision for loan losses as a percentage of total gross loans
|
|
0.41
|
%
|
|
0.58
|
%
|
|
0.49
|
%
|
|||
Gross loan charge-offs as a percentage of average total gross loans
|
|
0.37
|
|
|
0.45
|
|
|
0.44
|
|
|||
Net loan charge-offs as a percentage of average total gross loans
|
|
0.32
|
|
|
0.33
|
|
|
0.31
|
|
|||
Allowance for loan losses as a percentage of period-end total gross loans
|
|
1.14
|
|
|
1.30
|
|
|
1.23
|
|
|||
Period-end total gross loans
|
|
$
|
14,488,766
|
|
|
$
|
10,995,268
|
|
|
$
|
9,024,248
|
|
Average total gross loans
|
|
11,592,052
|
|
|
9,431,128
|
|
|
7,623,417
|
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Non-GAAP core fee income (1):
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange fees
|
|
$
|
71,659
|
|
|
$
|
57,411
|
|
|
24.8
|
%
|
|
$
|
52,433
|
|
|
9.5
|
%
|
Credit card fees
|
|
41,792
|
|
|
32,461
|
|
|
28.7
|
|
|
24,809
|
|
|
30.8
|
|
|||
Deposit service charges
|
|
39,937
|
|
|
35,948
|
|
|
11.1
|
|
|
33,421
|
|
|
7.6
|
|
|||
Lending related fees (2)
|
|
25,711
|
|
|
20,980
|
|
|
22.6
|
|
|
18,038
|
|
|
16.3
|
|
|||
Letters of credit and standby letters of credit fees
|
|
15,649
|
|
|
14,716
|
|
|
6.3
|
|
|
15,150
|
|
|
(2.9
|
)
|
|||
Client investment fees
|
|
14,883
|
|
|
13,959
|
|
|
6.6
|
|
|
14,539
|
|
|
(4.0
|
)
|
|||
Total non-GAAP core fee income
|
|
209,631
|
|
|
175,475
|
|
|
19.5
|
|
|
158,390
|
|
|
10.8
|
|
|||
Gains on investment securities, net
|
|
267,023
|
|
|
419,408
|
|
|
(36.3
|
)
|
|
122,114
|
|
|
NM
|
|
|||
Gains on derivative instruments, net
|
|
96,845
|
|
|
42,184
|
|
|
129.6
|
|
|
18,679
|
|
|
125.8
|
|
|||
Other
|
|
(1,260
|
)
|
|
36,139
|
|
|
(103.5
|
)
|
|
36,363
|
|
|
(0.6
|
)
|
|||
GAAP noninterest income
|
|
$
|
572,239
|
|
|
$
|
673,206
|
|
|
(15.0
|
)
|
|
$
|
335,546
|
|
|
100.6
|
|
|
(1)
|
This non-GAAP measure represents noninterest income, but excludes certain line items where performance is typically subject to market or other conditions beyond our control.
|
(2)
|
Lending related fees consists of fee income associated with credit commitments such as unused commitment fees, syndication fees and other loan processing fees and, historically, has been included in other noninterest income. Prior period amounts have been reclassified to conform to the current period presentation.
|
|
|
Year ended December 31,
|
||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
GAAP noninterest income
|
|
$
|
572,239
|
|
|
$
|
673,206
|
|
|
(15.0
|
)%
|
|
$
|
335,546
|
|
|
100.6
|
%
|
Less: income attributable to noncontrolling interests, including carried interest
|
|
233,624
|
|
|
342,904
|
|
|
(31.9
|
)
|
|
85,940
|
|
|
NM
|
|
|||
Non-GAAP noninterest income, net of noncontrolling interests
|
|
338,615
|
|
|
330,302
|
|
|
2.5
|
|
|
249,606
|
|
|
32.3
|
|
|||
Less: net losses on SVBIF Sale Transaction (1)
|
|
(13,934
|
)
|
|
—
|
|
|
100.0
|
|
|
—
|
|
|
—
|
|
|||
Less: gains on sales of certain available-for-sale securities (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,955
|
|
|
(100.0
|
)
|
|||
Less: net gains on the sale of certain assets related to our equity management services business (3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,243
|
|
|
(100.0
|
)
|
|||
Non-GAAP noninterest income, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction and gains on sales of certain assets
|
|
$
|
352,549
|
|
|
$
|
330,302
|
|
|
6.7
|
|
|
$
|
240,408
|
|
|
37.4
|
|
|
(1)
|
Pre-tax net losses of $13.9 million on the pending sale of SVBIF are included in other noninterest income at December 31, 2014.
|
(2)
|
Gains on the sales of $316 million in certain available-for-sale securities are included in gains on investment securities, net at December 31, 2012.
|
(3)
|
Net gains of $4.2 million from the sale of certain assets related to our equity management services business are included in other noninterest income at December 31, 2012.
|
•
|
Gains of
$26.5 million
from our strategic and other investments, primarily driven by strong distributions from our strategic venture capital fund investments.
|
•
|
Gains of
$22.9 million
from our managed funds of funds, primarily related to unrealized valuation adjustments.
|
•
|
Losses of
$18.6 million
from our available-for-sale securities portfolio, primarily attributable to the sale of shares of FireEye common stock (acquired through the exercise of certain warrants) during the second quarter of 2014.
|
(Dollars in thousands)
|
|
Managed
Funds of
Funds
|
|
Managed
Direct
Venture
Funds
|
|
Debt
Funds
|
|
Available-
For-Sale
Securities
|
|
Strategic
and Other
Investments
|
|
Total
|
||||||||||||
Year ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP gains (losses) on investment securities, net
|
|
$
|
262,463
|
|
|
$
|
(6,512
|
)
|
|
$
|
3,191
|
|
|
$
|
(18,597
|
)
|
|
$
|
26,478
|
|
|
$
|
267,023
|
|
Less: gains (losses) attributable to noncontrolling interests, including carried interest
|
|
239,588
|
|
|
(3,279
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
236,294
|
|
||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests
|
|
$
|
22,875
|
|
|
$
|
(3,233
|
)
|
|
$
|
3,206
|
|
|
$
|
(18,597
|
)
|
|
$
|
26,478
|
|
|
$
|
30,729
|
|
Year ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP gains on investment securities, net
|
|
$
|
169,749
|
|
|
$
|
229,506
|
|
|
$
|
9,440
|
|
|
$
|
538
|
|
|
$
|
10,175
|
|
|
$
|
419,408
|
|
Less: gains (losses) attributable to noncontrolling interests, including carried interest
|
|
154,741
|
|
|
187,392
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
342,128
|
|
||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests
|
|
$
|
15,008
|
|
|
$
|
42,114
|
|
|
$
|
9,445
|
|
|
$
|
538
|
|
|
$
|
10,175
|
|
|
$
|
77,280
|
|
Year ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP gains on investment securities, net
|
|
$
|
44,198
|
|
|
$
|
54,662
|
|
|
$
|
12,381
|
|
|
$
|
4,241
|
|
|
$
|
6,632
|
|
|
$
|
122,114
|
|
Less: gains attributable to noncontrolling interests, including carried interest
|
|
40,828
|
|
|
44,778
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
85,640
|
|
||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests
|
|
3,370
|
|
|
9,884
|
|
|
12,347
|
|
|
4,241
|
|
|
6,632
|
|
|
36,474
|
|
||||||
Less: gain on sales of certain available-for-sale securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,955
|
|
|
—
|
|
|
4,955
|
|
||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests and excluding gains on sales of certain available-for-sale securities
|
|
$
|
3,370
|
|
|
$
|
9,884
|
|
|
$
|
12,347
|
|
|
$
|
(714
|
)
|
|
$
|
6,632
|
|
|
$
|
31,519
|
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Equity warrant assets (1):
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains on exercises, net
|
|
$
|
29,802
|
|
|
$
|
8,716
|
|
|
NM
|
|
|
$
|
10,000
|
|
|
(12.8
|
)%
|
Change in fair value:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cancellations and expirations
|
|
(856
|
)
|
|
(450
|
)
|
|
90.2
|
%
|
|
(1,522
|
)
|
|
(70.4
|
)
|
|||
Changes in fair value
|
|
42,066
|
|
|
37,835
|
|
|
11.2
|
|
|
10,907
|
|
|
NM
|
|
|||
Net gains on equity warrant assets
|
|
71,012
|
|
|
46,101
|
|
|
54.0
|
|
|
19,385
|
|
|
137.8
|
|
|||
Gains on foreign exchange forward contracts, net:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains (losses) on client foreign exchange forward contracts, net (2)
|
|
5,081
|
|
|
(452
|
)
|
|
NM
|
|
|
460
|
|
|
(198.3
|
)
|
|||
Gains (losses) on internal foreign exchange forward contracts, net (3)
|
|
21,598
|
|
|
(4,213
|
)
|
|
NM
|
|
|
(103
|
)
|
|
NM
|
|
|||
Total gains (losses) on foreign exchange forward contracts, net
|
|
26,679
|
|
|
(4,665
|
)
|
|
NM
|
|
|
357
|
|
|
NM
|
|
|||
Change in fair value of interest rate swaps
|
|
(50
|
)
|
|
14
|
|
|
NM
|
|
|
603
|
|
|
(97.7
|
)
|
|||
Net (losses) gains on other derivatives (4)
|
|
(796
|
)
|
|
734
|
|
|
NM
|
|
|
(1,666
|
)
|
|
(144.1
|
)
|
|||
Gains on derivative instruments, net
|
|
$
|
96,845
|
|
|
$
|
42,184
|
|
|
129.6
|
|
|
$
|
18,679
|
|
|
125.8
|
|
|
(1)
|
At
December 31, 2014
, we held warrants in
1,478
companies, compared to
1,320
companies at
December 31, 2013
and 1,270 companies at
December 31, 2012
. The total value of our warrant portfolio was $117 million at December 31, 2014, $103 million at December 31, 2013, and $74 million at December 31, 2012. Of the 1,478 companies, 25 companies made up approximately 35% of the fair value of the portfolio at December 31, 2014.
|
(2)
|
Represents the net gains (losses) for foreign exchange forward contracts executed on behalf of clients, excluding any spread or fees earned in connection with these trades.
|
(3)
|
Represents the change in the fair value of foreign exchange forward contracts used to economically reduce our foreign exchange exposure related to certain foreign currency denominated instruments. Refer to revaluation of foreign currency instruments included in the line item "Other" within noninterest income for the amount we were able to partially offset.
|
(4)
|
Primarily represents the change in fair value of loan conversion options held by SVB Financial. For more information, refer to Note 13—"Derivative Financial Instruments" of the "Notes to the Consolidated Financial Statements" under Part II, Item 8 in this report.
|
•
|
Net gains on equity warrant assets of
$71.0 million
in
2014
, compared to net gains of
$46.1 million
in
2013
. The $24.9 million increase was primarily due to net gains of $29.8 million from the exercise of equity warrant assets, reflective of the exercise and conversion of several of our public warrants including, FireEye and Twitter, compared to $8.7 million in 2013. In addition, net gains from warrant valuations were $42.1 million in 2014 compared to $37.8 million in 2013, an increase of $4.3 million primarily driven by changes in warrant valuations from our private company warrant portfolio.
|
•
|
Net gains of
$21.6 million
on internal foreign exchange forward contracts hedging certain of our foreign currency denominated instruments in 2014, compared to net losses of
$4.2 million
for the comparable 2013 period. The higher gains in 2014 were primarily attributable to the strengthening of the U.S. Dollar against the Euro and Pound Sterling. These gains are offset by losses of
$21.6 million
from the revaluation of foreign currency denominated instruments that are included in the line item "other" within noninterest income as noted below.
|
•
|
Net gains on equity warrant assets of
$46.1 million
in
2013
, compared to net gains of $19.4 million in 2012. The $26.7 million increase was primarily due to net gains from warrant valuations of $37.8 million from both private and public clients, of which $14.2 million in gains resulted from increases in valuations of FireEye and Twitter, compared to $10.9 million in 2012.
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in millions)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Client directed investment assets (1)
|
|
$
|
7,173
|
|
|
$
|
7,207
|
|
|
(0.5
|
)%
|
|
$
|
7,335
|
|
|
(1.7
|
)%
|
Client investment assets under management
|
|
16,049
|
|
|
11,775
|
|
|
36.3
|
|
|
10,282
|
|
|
14.5
|
|
|||
Sweep money market funds
|
|
6,814
|
|
|
5,237
|
|
|
30.1
|
|
|
2,596
|
|
|
101.7
|
|
|||
Total average client investment funds (2)
|
|
$
|
30,036
|
|
|
$
|
24,219
|
|
|
24.0
|
|
|
$
|
20,213
|
|
|
19.8
|
|
|
(1)
|
Comprised of mutual funds and Repurchase Agreement Program assets.
|
(2)
|
Client investment funds are maintained at third party financial institutions and are not recorded on our balance sheet.
|
|
|
December 31,
|
||||||||||||||||
(Dollars in millions)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Client directed investment assets
|
|
$
|
6,158
|
|
|
$
|
7,073
|
|
|
(12.9
|
)%
|
|
$
|
7,604
|
|
|
(7.0
|
)%
|
Client investment assets under management
|
|
18,253
|
|
|
12,689
|
|
|
43.8
|
|
|
10,824
|
|
|
17.2
|
|
|||
Sweep money market funds
|
|
7,957
|
|
|
6,601
|
|
|
20.5
|
|
|
4,085
|
|
|
61.6
|
|
|||
Total period-end client investment funds
|
|
$
|
32,368
|
|
|
$
|
26,363
|
|
|
22.8
|
|
|
$
|
22,513
|
|
|
17.1
|
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Fund management fees
|
|
$
|
13,498
|
|
|
$
|
11,163
|
|
|
20.9
|
%
|
|
$
|
11,057
|
|
|
1.0
|
%
|
Service-based fee income
|
|
8,801
|
|
|
7,807
|
|
|
12.7
|
|
|
7,937
|
|
|
(1.6
|
)
|
|||
Net gains on the sale of certain assets related to our equity management services business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,243
|
|
|
(100.0
|
)
|
|||
Net losses on the sale of certain assets related to our SVBIF Sales Transaction
|
|
(13,934
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
(Losses) gains on revaluation of foreign currency instruments (1)
|
|
(21,636
|
)
|
|
3,016
|
|
|
NM
|
|
|
1,677
|
|
|
79.8
|
|
|||
Other (2)
|
|
12,011
|
|
|
14,153
|
|
|
(15.1
|
)
|
|
11,449
|
|
|
23.6
|
|
|||
Total other noninterest (loss) income
|
|
$
|
(1,260
|
)
|
|
$
|
36,139
|
|
|
(103.5
|
)
|
|
$
|
36,363
|
|
|
(0.6
|
)
|
|
(1)
|
Represents the revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash. These instruments partially offset the impact of changes in internal foreign exchange forward contracts. Refer to internal foreign exchange forward contracts, net included within gains on derivative instruments as noted above.
|
(2)
|
Includes dividends on FHLB/FRB stock, correspondent bank rebate income and other fee income.
|
•
|
Losses of
$21.6 million
from the revaluation of foreign currency instruments, compared to gains of
$3.0 million
in
2013
. The revaluation losses were primarily due to the strengthening of the U.S. Dollar against the Euro and Pound Sterling. The losses from the revaluation of foreign currency instruments were offset by net gains of
$21.6 million
for 2014 on internal foreign exchange forward contracts economically hedging certain of these instruments, which are included within noninterest income in the line item "gains on derivative instruments" as noted above.
|
•
|
Pre-tax net losses of
$13.9 million
related to the pending sale of SVBIF, which consists of:
|
◦
|
Approximately $12.9 million of losses primarily attributable to cumulative foreign currency translation adjustment, and
|
◦
|
$1.0 million in accrued transaction-related expenses.
|
•
|
Nonrecurring gains of $4.2 million on the sale of certain assets related to our equity management services business in the second quarter of 2012.
|
•
|
Gains of $3.0 million on the revaluation of foreign currency instruments, compared to gains of $1.7 million in 2012. The revaluation gains were primarily due to the weakening of the U.S. Dollar against the Euro and Pound Sterling.
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Compensation and benefits
|
|
$
|
409,486
|
|
|
$
|
366,801
|
|
|
11.6
|
%
|
|
$
|
326,942
|
|
|
12.2
|
%
|
Professional services
|
|
94,377
|
|
|
76,178
|
|
|
23.9
|
|
|
67,845
|
|
|
12.3
|
|
|||
Premises and equipment
|
|
49,716
|
|
|
45,935
|
|
|
8.2
|
|
|
40,689
|
|
|
12.9
|
|
|||
Business development and travel
|
|
40,057
|
|
|
33,334
|
|
|
20.2
|
|
|
29,409
|
|
|
13.3
|
|
|||
Net occupancy
|
|
30,004
|
|
|
24,937
|
|
|
20.3
|
|
|
22,536
|
|
|
10.7
|
|
|||
FDIC assessments
|
|
19,206
|
|
|
12,784
|
|
|
50.2
|
|
|
10,959
|
|
|
16.7
|
|
|||
Correspondent bank fees
|
|
13,118
|
|
|
12,142
|
|
|
8.0
|
|
|
11,168
|
|
|
8.7
|
|
|||
Provision for unfunded credit commitments
|
|
6,511
|
|
|
7,642
|
|
|
(14.8
|
)
|
|
488
|
|
|
NM
|
|
|||
Other
|
|
54,396
|
|
|
41,927
|
|
|
29.7
|
|
|
35,962
|
|
|
16.6
|
|
|||
Total noninterest expense
|
|
$
|
716,871
|
|
|
$
|
621,680
|
|
|
15.3
|
|
|
$
|
545,998
|
|
|
13.9
|
|
|
|
|
Year ended December 31,
|
||||||||||||||||
Non-GAAP operating efficiency ratio, net of noncontrolling interests (Dollars in thousands, except ratios)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
GAAP noninterest expense
|
|
$
|
716,871
|
|
|
$
|
621,680
|
|
|
15.3
|
%
|
|
$
|
545,998
|
|
|
13.9
|
%
|
Less: expense attributable to noncontrolling interests
|
|
18,867
|
|
|
12,714
|
|
|
48.4
|
|
|
11,336
|
|
|
12.2
|
|
|||
Non-GAAP noninterest expense, net of noncontrolling interests
|
|
$
|
698,004
|
|
|
$
|
608,966
|
|
|
14.6
|
|
|
$
|
534,662
|
|
|
13.9
|
|
GAAP net interest income
|
|
$
|
856,595
|
|
|
$
|
697,344
|
|
|
22.8
|
|
|
$
|
617,864
|
|
|
12.9
|
|
Adjustments for taxable equivalent basis
|
|
1,689
|
|
|
1,724
|
|
|
(2.0
|
)
|
|
1,919
|
|
|
(10.2
|
)
|
|||
Non-GAAP taxable equivalent net interest income
|
|
$
|
858,284
|
|
|
$
|
699,068
|
|
|
22.8
|
|
|
$
|
619,783
|
|
|
12.8
|
|
Less: income attributable to noncontrolling interests
|
|
33
|
|
|
76
|
|
|
(56.6
|
)
|
|
106
|
|
|
(28.3
|
)
|
|||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests
|
|
$
|
858,251
|
|
|
$
|
698,992
|
|
|
22.8
|
|
|
$
|
619,677
|
|
|
12.8
|
|
GAAP noninterest income
|
|
$
|
572,239
|
|
|
$
|
673,206
|
|
|
(15.0
|
)
|
|
$
|
335,546
|
|
|
100.6
|
|
Non-GAAP noninterest income, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction and gains on sales of certain assets
|
|
352,549
|
|
|
330,302
|
|
|
6.7
|
|
|
240,408
|
|
|
37.4
|
|
|||
GAAP total revenue
|
|
$
|
1,428,834
|
|
|
$
|
1,370,550
|
|
|
4.3
|
|
|
$
|
953,410
|
|
|
43.8
|
|
Non-GAAP taxable equivalent revenue, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction and gains on sales of certain assets
|
|
$
|
1,210,800
|
|
|
$
|
1,029,294
|
|
|
17.6
|
|
|
$
|
860,085
|
|
|
19.7
|
|
GAAP operating efficiency ratio
|
|
50.17
|
%
|
|
45.36
|
%
|
|
10.6
|
|
|
57.27
|
%
|
|
(20.8
|
)
|
|||
Non-GAAP noninterest income, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction and gains on sales of certain assets (1)
|
|
57.65
|
|
|
59.16
|
|
|
(2.6
|
)
|
|
62.16
|
|
|
(4.8
|
)
|
|
(1)
|
The non-GAAP operating efficiency ratio is calculated by dividing non-GAAP noninterest expense, net of noncontrolling interests by non-GAAP total taxable-equivalent revenue, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction and gains on sales of certain assets.
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries and wages
|
|
$
|
186,763
|
|
|
$
|
159,455
|
|
|
17.1
|
%
|
|
$
|
150,536
|
|
|
5.9
|
%
|
Incentive compensation & ESOP
|
|
107,564
|
|
|
103,494
|
|
|
3.9
|
|
|
86,684
|
|
|
19.4
|
|
|||
Other employee benefits (1)
|
|
115,159
|
|
|
103,852
|
|
|
10.9
|
|
|
89,722
|
|
|
15.7
|
|
|||
Total compensation and benefits
|
|
$
|
409,486
|
|
|
$
|
366,801
|
|
|
11.6
|
|
|
$
|
326,942
|
|
|
12.2
|
|
Period-end full-time equivalent employees
|
|
1,914
|
|
|
1,704
|
|
|
12.3
|
|
|
1,615
|
|
|
5.5
|
|
|||
Average full-time equivalent employees
|
|
1,815
|
|
|
1,669
|
|
|
8.7
|
|
|
1,581
|
|
|
5.6
|
|
|
(1)
|
Other employee benefits includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), warrant incentive and retention program plans, agency fees and other employee related expenses.
|
•
|
An increase of
$27.3 million
in salaries and wages expense, primarily due to an increase in the number of average FTEs, as well as from market adjustments. Average FTEs increased by
146
to
1,815
in
2014
, compared to
1,669
in
|
•
|
An increase of
$11.3 million
in other employee benefits, primarily due to share-based plan expense primarily as a result of the increase in the valuation of the SVB Financial's common stock and to various other employee benefits that increased due to the increase in average FTEs.
|
•
|
An increase of
$4.1 million
in incentive compensation and ESOP expense, primarily reflective of an increase in average FTEs.
|
•
|
An increase of $16.8 million in incentive compensation and ESOP expense, primarily reflective of higher expenses in 2013 as a result of strong performance relative to our internal performance targets for the year.
|
•
|
An increase of $14.1 million in other employee benefits, primarily due to warrant incentive program plan expense resulting from the gains recorded for the increase in valuation related to IPOs in 2013 and share-based plan expense primarily as a result of the increase in the valuation of the SVB Financial's common stock. The remaining increases related to various other employee benefits.
|
•
|
An increase of $8.9 million in salaries and wages expense, primarily due to an increase in the number of average FTEs, as well as from merit increases. Average FTEs increased by 88 to
1,669
in
2013
, compared to 1,581 in 2012, primarily to support our product development, operational and sales and advisory, as well as to support our commercial banking operations and initiatives.
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Client services
|
|
$
|
10,692
|
|
|
$
|
8,181
|
|
|
30.7
|
%
|
|
$
|
6,910
|
|
|
18.4
|
%
|
Tax credit fund amortization
|
|
9,691
|
|
|
6,436
|
|
|
50.6
|
|
|
3,911
|
|
|
64.6
|
|
|||
Data processing services
|
|
8,079
|
|
|
7,895
|
|
|
2.3
|
|
|
5,876
|
|
|
34.4
|
|
|||
Telephone
|
|
7,250
|
|
|
6,258
|
|
|
15.9
|
|
|
6,528
|
|
|
(4.1
|
)
|
|||
Postage and supplies
|
|
3,196
|
|
|
2,462
|
|
|
29.8
|
|
|
2,482
|
|
|
(0.8
|
)
|
|||
Dues and publications
|
|
2,549
|
|
|
1,745
|
|
|
46.1
|
|
|
2,067
|
|
|
(15.6
|
)
|
|||
Other
|
|
12,939
|
|
|
8,950
|
|
|
44.6
|
|
|
8,188
|
|
|
9.3
|
|
|||
Total other noninterest expense
|
|
$
|
54,396
|
|
|
$
|
41,927
|
|
|
29.7
|
|
|
$
|
35,962
|
|
|
16.6
|
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Net interest income (1)
|
|
$
|
(33
|
)
|
|
$
|
(76
|
)
|
|
(56.6
|
)%
|
|
$
|
(106
|
)
|
|
(28.3
|
)%
|
Noninterest income (1)
|
|
(240,661
|
)
|
|
(372,246
|
)
|
|
(35.3
|
)
|
|
(88,823
|
)
|
|
NM
|
|
|||
Noninterest expense (1)
|
|
18,867
|
|
|
12,714
|
|
|
48.4
|
|
|
11,336
|
|
|
12.2
|
|
|||
Carried interest income (2)
|
|
7,037
|
|
|
29,342
|
|
|
(76.0
|
)
|
|
2,883
|
|
|
NM
|
|
|||
Net income attributable to noncontrolling interests
|
|
$
|
(214,790
|
)
|
|
$
|
(330,266
|
)
|
|
(35.0
|
)
|
|
$
|
(74,710
|
)
|
|
NM
|
|
|
(1)
|
Represents noncontrolling interests’ share in net interest income, noninterest income and noninterest expense.
|
(2)
|
Represents the preferred allocation of income (or change in income) earned by us as the general partner of certain consolidated funds.
|
•
|
Net gains on investment securities (including carried interest) attributable to noncontrolling interests of $236.3 million ($243.3 million excluding carried interest) primarily from gains of $239.6 million from our managed funds of funds primarily due to unrealized valuation increases from IPO, M&A activity and other valuation increases across the portfolio, partially offset by losses of $3.3 million from our managed direct venture funds. See "Results of Operations—Noninterest Income—Gains on Investment Securities, Net". The decrease of $22.3 million in carried interest income primarily reflects
|
•
|
Noninterest expense of
$18.9 million
, primarily related to management fees paid by the noncontrolling interests to our subsidiaries that serve as the general partner.
|
•
|
Net gains on investment securities (including carried interest) attributable to noncontrolling interests of $342.1 million ($371.5 million excluding carried interest) primarily from gains of $154.7 million from our managed funds of funds and $187.4 million from our managed direct venture funds primarily related to the increase in FireEye valuation. See "Results of Operations—Noninterest Income—Gains on Investment Securities, Net". The increase of $26.5 million in carried interest income, to $29.3 million in 2013 compared to $2.9 million in 2012, also primarily reflects the impact of the increase in FireEye valuations in our managed direct funds, and
|
•
|
Noninterest expense of
$12.7 million
, primarily related to management fees paid by the noncontrolling interests to our subsidiaries that serve as the general partner.
|
•
|
Net gains on investment securities (including carried interest) attributable to noncontrolling interests of $85.6 million ($88.5 million excluding carried interest) primarily from gains of $40.8 million from our managed funds of funds and $44.8 million from our managed direct venture funds, and
|
•
|
Noninterest expense of
$11.3 million
, primarily related to management fees paid by the noncontrolling interests to our subsidiaries that serve as the general partner.
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Net interest income
|
|
$
|
742,274
|
|
|
$
|
641,384
|
|
|
15.7
|
%
|
|
$
|
593,770
|
|
|
8.0
|
%
|
Provision for loan losses
|
|
(58,622
|
)
|
|
(65,290
|
)
|
|
(10.2
|
)
|
|
(45,417
|
)
|
|
43.8
|
|
|||
Noninterest income
|
|
213,084
|
|
|
202,404
|
|
|
5.3
|
|
|
188,821
|
|
|
7.2
|
|
|||
Noninterest expense
|
|
(510,165
|
)
|
|
(429,650
|
)
|
|
18.7
|
|
|
(393,151
|
)
|
|
9.3
|
|
|||
Income before income tax expense
|
|
$
|
386,571
|
|
|
$
|
348,848
|
|
|
10.8
|
|
|
$
|
344,023
|
|
|
1.4
|
|
Total average loans, net of unearned income
|
|
$
|
10,286,448
|
|
|
$
|
8,401,943
|
|
|
22.4
|
|
|
$
|
6,750,951
|
|
|
24.5
|
|
Total average assets
|
|
30,286,374
|
|
|
21,395,501
|
|
|
41.6
|
|
|
19,557,289
|
|
|
9.4
|
|
|||
Total average deposits
|
|
27,364,246
|
|
|
19,072,608
|
|
|
43.5
|
|
|
17,574,001
|
|
|
8.5
|
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Net interest income
|
|
$
|
31,427
|
|
|
$
|
26,701
|
|
|
17.7
|
%
|
|
$
|
21,807
|
|
|
22.4
|
%
|
(Provision for) reduction of loan losses
|
|
(864
|
)
|
|
1,597
|
|
|
(154.1
|
)
|
|
1,087
|
|
|
46.9
|
|
|||
Noninterest income
|
|
1,494
|
|
|
1,209
|
|
|
23.6
|
|
|
681
|
|
|
77.5
|
|
|||
Noninterest expense
|
|
(10,571
|
)
|
|
(9,195
|
)
|
|
15.0
|
|
|
(7,388
|
)
|
|
24.5
|
|
|||
Income before income tax expense
|
|
$
|
21,486
|
|
|
$
|
20,312
|
|
|
5.8
|
|
|
$
|
16,187
|
|
|
25.5
|
|
Total average loans, net of unearned income
|
|
$
|
1,157,024
|
|
|
$
|
919,831
|
|
|
25.8
|
|
|
$
|
758,471
|
|
|
21.3
|
|
Total average assets
|
|
1,150,835
|
|
|
955,441
|
|
|
20.5
|
|
|
759,251
|
|
|
25.8
|
|
|||
Total average deposits
|
|
890,062
|
|
|
524,398
|
|
|
69.7
|
|
|
313,836
|
|
|
67.1
|
|
|
|
Year ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change 2014/2013
|
|
2012
|
|
% Change 2013/2012
|
||||||||
Net interest income
|
|
$
|
58
|
|
|
$
|
20
|
|
|
190.0
|
%
|
|
$
|
15
|
|
|
33.3
|
%
|
Noninterest income
|
|
58,058
|
|
|
75,037
|
|
|
(22.6
|
)
|
|
27,435
|
|
|
173.5
|
|
|||
Noninterest expense
|
|
(12,668
|
)
|
|
(10,737
|
)
|
|
18.0
|
|
|
(11,263
|
)
|
|
(4.7
|
)
|
|||
Income before income tax expense
|
|
$
|
45,448
|
|
|
$
|
64,320
|
|
|
(29.3
|
)
|
|
$
|
16,187
|
|
|
NM
|
|
Total average assets
|
|
$
|
320,129
|
|
|
$
|
289,328
|
|
|
10.6
|
|
|
$
|
239,335
|
|
|
20.9
|
|
|
•
|
Net gains on investment securities of
$43.3 million
in
2014
, compared to net gains of
$62.6 million
in
2013
. The net gains on investment securities of
$43.3 million
in
2014
were primarily driven by gains from our strategic and other investments driven by strong distributions from strategic venture capital fund investments and unrealized valuation gains from our managed funds of funds.
|
•
|
Fund management fees of
$13.5 million
for
2014
, compared to $11.2 million in
2013
. Fund management fees increased due to the addition of the Capital Partners III, LP fund in 2014.
|
•
|
Net gains on investment securities of
$62.6 million
in
2013
, compared to net gains of
$16.2 million
in 2012. The net gains on investment securities of
$62.6 million
in
2013
were primarily driven by unrealized valuation increases and carried interest allocations, related to FireEye and Twitter, from two of our managed direct venture funds.
|
•
|
Fund management fees of $11.2 million for
2013
, compared to $11.1 million in 2012.
|
|
|
December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
|
||||||
U.S. treasury securities
|
|
$
|
7,302,273
|
|
|
$
|
—
|
|
|
$
|
25,247
|
|
U.S. agency debentures
|
|
3,561,556
|
|
|
4,345,232
|
|
|
3,447,628
|
|
|||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
||||||
Agency-issued mortgage-backed securities
|
|
—
|
|
|
2,473,576
|
|
|
1,473,433
|
|
|||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,884,843
|
|
|
3,325,758
|
|
|
4,103,974
|
|
|||
Agency-issued collateralized mortgage obligations—variable rate
|
|
784,475
|
|
|
1,186,573
|
|
|
1,772,748
|
|
|||
Agency issued commercial mortgage-backed securities
|
|
—
|
|
|
564,604
|
|
|
422,098
|
|
|||
Municipal bonds and notes
|
|
—
|
|
|
86,027
|
|
|
93,529
|
|
|||
Equity securities
|
|
7,508
|
|
|
5,051
|
|
|
4,520
|
|
|||
Total available-for-sale securities
|
|
13,540,655
|
|
|
11,986,821
|
|
|
11,343,177
|
|
|||
Held-to-maturity securities, at amortized cost:
|
|
|
|
|
|
|
||||||
U.S. agency debentures
|
|
405,899
|
|
|
—
|
|
|
—
|
|
|||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
||||||
Agency-issued mortgage-backed securities
|
|
2,799,923
|
|
|
—
|
|
|
—
|
|
|||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
3,185,109
|
|
|
—
|
|
|
—
|
|
|||
Agency-issued collateralized mortgage obligations—variable rate
|
|
131,580
|
|
|
—
|
|
|
—
|
|
|||
Agency-issued commercial mortgage-backed securities
|
|
814,589
|
|
|
—
|
|
|
—
|
|
|||
Municipal bonds and notes
|
|
83,942
|
|
|
—
|
|
|
—
|
|
|||
Total held-to-maturity securities
|
|
7,421,042
|
|
|
—
|
|
|
—
|
|
|||
Non-marketable and other securities:
|
|
|
|
|
|
|
||||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments
|
|
1,130,882
|
|
|
862,972
|
|
|
665,921
|
|
|||
Other venture capital investments
|
|
71,204
|
|
|
32,839
|
|
|
127,091
|
|
|||
Other Securities (fair value accounting)
|
|
108,251
|
|
|
321,374
|
|
|
—
|
|
|||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
||||||
Other investments
|
|
142,674
|
|
|
142,883
|
|
|
139,330
|
|
|||
Low income housing tax credit funds
|
|
118,650
|
|
|
72,241
|
|
|
70,318
|
|
|||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments
|
|
140,551
|
|
|
148,994
|
|
|
161,884
|
|
|||
Other investments
|
|
16,676
|
|
|
14,191
|
|
|
19,721
|
|
|||
Total non-marketable and other securities
|
|
1,728,888
|
|
|
1,595,494
|
|
|
1,184,265
|
|
|||
Total investment securities
|
|
$
|
22,690,585
|
|
|
$
|
13,582,315
|
|
|
$
|
12,527,442
|
|
◦
|
Gains of
$262 million
from our managed funds of funds, primarily related to unrealized valuation increases from IPO, M&A activity and other valuation increases across the managed funds of funds portfolio.
|
◦
|
Gains of
$26 million
from our strategic and other investments, primarily driven by strong distributions from our strategic venture capital fund investments.
|
◦
|
Partially offset by net sales and distributions of $140 million across our non-marketable and other securities portfolio.
|
◦
|
Gains of $230 million from our managed direct venture funds, driven by the continued strong stock performance of successful portfolio company IPOs during the year.
|
◦
|
Gains of $170 million from our managed funds of funds, primarily related to unrealized valuation increases from IPO, M&A activity and other valuation increases across the portfolio.
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||
(Dollars in thousands)
|
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG
|
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG
|
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG
|
||||||||||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Venture capital and private equity fund investments (1)
|
|
$
|
1,130,882
|
|
|
$
|
84,368
|
|
|
$
|
862,972
|
|
|
$
|
76,505
|
|
|
$
|
665,921
|
|
|
$
|
75,893
|
|
Other venture capital investments (2)
|
|
71,204
|
|
|
1,823
|
|
|
32,839
|
|
|
2,097
|
|
|
127,091
|
|
|
8,962
|
|
||||||
Other securities (fair value accounting) (3)
|
|
108,251
|
|
|
7,802
|
|
|
321,374
|
|
|
23,058
|
|
|
—
|
|
|
—
|
|
||||||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other investments
|
|
142,674
|
|
|
142,674
|
|
|
142,883
|
|
|
142,883
|
|
|
139,330
|
|
|
139,330
|
|
||||||
Low income housing tax credit funds
|
|
118,650
|
|
|
118,650
|
|
|
72,241
|
|
|
72,241
|
|
|
70,318
|
|
|
70,318
|
|
||||||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Venture capital and private equity fund investments
|
|
140,551
|
|
|
140,551
|
|
|
148,994
|
|
|
148,994
|
|
|
161,884
|
|
|
161,884
|
|
||||||
Other investments
|
|
16,676
|
|
|
16,676
|
|
|
14,191
|
|
|
14,191
|
|
|
19,721
|
|
|
19,721
|
|
||||||
Total non-marketable and other securities
|
|
$
|
1,728,888
|
|
|
$
|
512,544
|
|
|
$
|
1,595,494
|
|
|
$
|
479,969
|
|
|
$
|
1,184,265
|
|
|
$
|
476,108
|
|
|
(1)
|
The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at
December 31, 2014
,
2013
and
2012
:
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||
(Dollars in thousands)
|
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG
|
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG |
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG |
||||||||||||
SVB Strategic Investors Fund, LP
|
|
$
|
24,645
|
|
|
$
|
3,096
|
|
|
$
|
29,104
|
|
|
$
|
3,656
|
|
|
$
|
32,850
|
|
|
$
|
4,126
|
|
SVB Strategic Investors Fund II, LP
|
|
97,250
|
|
|
8,336
|
|
|
96,185
|
|
|
8,244
|
|
|
91,294
|
|
|
7,825
|
|
||||||
SVB Strategic Investors Fund III, LP
|
|
269,821
|
|
|
15,841
|
|
|
260,272
|
|
|
15,280
|
|
|
209,696
|
|
|
12,311
|
|
||||||
SVB Strategic Investors Fund IV, LP
|
|
291,291
|
|
|
14,564
|
|
|
226,729
|
|
|
11,337
|
|
|
169,931
|
|
|
8,497
|
|
||||||
Strategic Investors Fund V Funds
|
|
226,111
|
|
|
350
|
|
|
118,181
|
|
|
184
|
|
|
40,622
|
|
|
112
|
|
||||||
Strategic Investors Fund VI Funds
|
|
89,605
|
|
|
—
|
|
|
7,944
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||||
SVB Capital Preferred Return Fund, LP
|
|
62,110
|
|
|
13,386
|
|
|
59,028
|
|
|
12,722
|
|
|
53,643
|
|
|
12,652
|
|
||||||
SVB Capital—NT Growth Partners, LP
|
|
61,973
|
|
|
21,006
|
|
|
61,126
|
|
|
21,339
|
|
|
60,120
|
|
|
23,842
|
|
||||||
SVB Capital Partners II, LP
|
|
302
|
|
|
15
|
|
|
708
|
|
|
36
|
|
|
1,303
|
|
|
66
|
|
||||||
Other private equity fund
|
|
7,774
|
|
|
7,774
|
|
|
3,695
|
|
|
3,695
|
|
|
6,462
|
|
|
6,462
|
|
||||||
Total venture capital and private equity fund investments
|
|
$
|
1,130,882
|
|
|
$
|
84,368
|
|
|
$
|
862,972
|
|
|
$
|
76,505
|
|
|
$
|
665,921
|
|
|
$
|
75,893
|
|
|
(2)
|
The following table shows the amounts of other venture capital investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at
December 31, 2014
,
2013
and
2012
:
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||
(Dollars in thousands)
|
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG |
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG |
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG |
||||||||||||
Silicon Valley BancVentures, LP
|
|
$
|
3,291
|
|
|
$
|
352
|
|
|
$
|
6,564
|
|
|
$
|
702
|
|
|
$
|
43,493
|
|
|
$
|
4,652
|
|
SVB Capital Partners II, LP
|
|
20,481
|
|
|
1,040
|
|
|
22,684
|
|
|
1,152
|
|
|
79,761
|
|
|
4,051
|
|
||||||
Capital Partners III, LP
|
|
41,055
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
SVB Capital Shanghai Yangpu Venture Capital Fund
|
|
6,377
|
|
|
431
|
|
|
3,591
|
|
|
243
|
|
|
3,837
|
|
|
259
|
|
||||||
Total other venture capital investments
|
|
$
|
71,204
|
|
|
$
|
1,823
|
|
|
$
|
32,839
|
|
|
$
|
2,097
|
|
|
$
|
127,091
|
|
|
$
|
8,962
|
|
(3)
|
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 total unrealized gains of
$75 million
in one public company, FireEye.
The extent to which any unrealized gains (or losses) will become realized is subject to a variety of factors, including, among other things, changes in prevailing market prices and the timing of any sales or distribution of securities and may also be constrained by lock-up agreements. None of the FireEye related investments currently are subject to a lock-up agreement.
|
|
|
December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software and internet (1)
|
|
$
|
4,954,676
|
|
|
$
|
4,102,636
|
|
|
$
|
3,261,489
|
|
|
$
|
2,492,849
|
|
|
$
|
1,820,680
|
|
Hardware (1)
|
|
1,131,006
|
|
|
1,213,032
|
|
|
1,118,370
|
|
|
952,303
|
|
|
641,052
|
|
|||||
Private equity/venture capital
|
|
4,582,906
|
|
|
2,386,054
|
|
|
1,732,699
|
|
|
1,117,419
|
|
|
1,036,201
|
|
|||||
Life science & healthcare (1)
|
|
1,289,904
|
|
|
1,170,220
|
|
|
1,066,199
|
|
|
863,737
|
|
|
575,944
|
|
|||||
Premium wine
|
|
187,568
|
|
|
149,841
|
|
|
143,511
|
|
|
130,245
|
|
|
144,972
|
|
|||||
Other (1)
|
|
234,551
|
|
|
288,904
|
|
|
315,453
|
|
|
342,147
|
|
|
375,928
|
|
|||||
Total commercial loans
|
|
12,380,611
|
|
|
9,310,687
|
|
|
7,637,721
|
|
|
5,898,700
|
|
|
4,594,777
|
|
|||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premium wine (2)
|
|
606,753
|
|
|
514,993
|
|
|
413,513
|
|
|
345,988
|
|
|
312,255
|
|
|||||
Consumer loans (3)
|
|
1,118,115
|
|
|
873,255
|
|
|
685,300
|
|
|
534,001
|
|
|
361,704
|
|
|||||
Other
|
|
39,651
|
|
|
30,743
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total real estate secured loans
|
|
1,764,519
|
|
|
1,418,991
|
|
|
1,098,813
|
|
|
879,989
|
|
|
673,959
|
|
|||||
Construction loans (4)
|
|
78,626
|
|
|
76,997
|
|
|
65,742
|
|
|
30,256
|
|
|
60,178
|
|
|||||
Consumer loans
|
|
160,520
|
|
|
99,711
|
|
|
144,657
|
|
|
161,137
|
|
|
192,823
|
|
|||||
Total loans, net of unearned income (5)(6)
|
|
$
|
14,384,276
|
|
|
$
|
10,906,386
|
|
|
$
|
8,946,933
|
|
|
$
|
6,970,082
|
|
|
$
|
5,521,737
|
|
|
(1)
|
Because of the diverse nature of energy and resource innovation 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.
|
(2)
|
Included in our premium wine portfolio are gross construction loans of
$112 million
,
$112 million
,
$148 million
,
$111 million
and
$119 million
at
December 31, 2014
,
2013
,
2012
,
2011
and
2010
, respectively.
|
(3)
|
Consumer loans secured by real estate at
December 31, 2014
,
2013
,
2012
,
2011
and
2010
were comprised of the following:
|
|
|
December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Loans for personal residence
|
|
$
|
918,629
|
|
|
$
|
685,327
|
|
|
$
|
503,378
|
|
|
$
|
350,359
|
|
|
$
|
189,039
|
|
Loans to eligible employees
|
|
133,568
|
|
|
121,548
|
|
|
110,584
|
|
|
99,704
|
|
|
88,510
|
|
|||||
Home equity lines of credit
|
|
65,918
|
|
|
66,380
|
|
|
71,338
|
|
|
83,938
|
|
|
84,155
|
|
|||||
Consumer loans secured by real estate
|
|
$
|
1,118,115
|
|
|
$
|
873,255
|
|
|
$
|
685,300
|
|
|
$
|
534,001
|
|
|
$
|
361,704
|
|
(4)
|
Construction loans consist of low income housing loans made to fulfill our responsibilities under the Community Reinvestment Act and are primarily secured by real estate.
|
(5)
|
Unearned income, net of deferred costs, was
$104 million
,
$89 million
,
$77 million
,
$60 million
and
$46 million
in
2014
,
2013
,
2012
,
2011
and
2010
, respectively.
|
(6)
|
Included within our total loan portfolio are credit card loans of
$131 million
,
$85 million
,
$64 million
,
$50 million
and
$33 million
at
December 31, 2014
,
2013
,
2012
,
2011
and
2010
, respectively.
|
|
|
December 31,
|
||||||||||||
|
|
2014
|
|
2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||
Software and internet
|
|
$
|
4,996,246
|
|
|
34.5
|
%
|
|
$
|
4,141,358
|
|
|
37.7
|
%
|
Hardware
|
|
1,140,494
|
|
|
7.9
|
|
|
1,224,480
|
|
|
11.1
|
|
||
Private equity/venture capital
|
|
4,621,299
|
|
|
31.9
|
|
|
2,408,426
|
|
|
21.9
|
|
||
Life science & healthcare
|
|
1,300,727
|
|
|
9.0
|
|
|
1,181,266
|
|
|
10.7
|
|
||
Premium wine
|
|
189,142
|
|
|
1.3
|
|
|
151,255
|
|
|
1.4
|
|
||
Other
|
|
236,519
|
|
|
1.6
|
|
|
291,630
|
|
|
2.7
|
|
||
Commercial loans
|
|
12,484,427
|
|
|
86.2
|
|
|
9,398,415
|
|
|
85.5
|
|
||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
||||||
Premium wine
|
|
607,507
|
|
|
4.2
|
|
|
515,942
|
|
|
4.7
|
|
||
Consumer loans
|
|
1,117,661
|
|
|
7.7
|
|
|
873,070
|
|
|
7.9
|
|
||
Other
|
|
39,983
|
|
|
0.3
|
|
|
31,033
|
|
|
0.3
|
|
||
Real estate secured loans
|
|
1,765,151
|
|
|
12.2
|
|
|
1,420,045
|
|
|
12.9
|
|
||
Construction loans
|
|
78,851
|
|
|
0.5
|
|
|
77,165
|
|
|
0.7
|
|
||
Consumer loans
|
|
160,337
|
|
|
1.1
|
|
|
99,643
|
|
|
0.9
|
|
||
Total gross loans
|
|
$
|
14,488,766
|
|
|
100.0
|
%
|
|
$
|
10,995,268
|
|
|
100.0
|
%
|
|
|
December 31, 2014
|
||||||||||||||||||||||
(Dollars in thousands)
|
|
Less than
Five Million
|
|
Five to Ten
Million
|
|
Ten to Twenty
Million
|
|
Twenty to Thirty Million
|
|
Thirty Million
or More
|
|
Total
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
1,214,082
|
|
|
$
|
670,212
|
|
|
$
|
1,174,410
|
|
|
$
|
917,546
|
|
|
$
|
1,019,996
|
|
|
$
|
4,996,246
|
|
Hardware
|
|
204,513
|
|
|
226,135
|
|
|
240,039
|
|
|
146,826
|
|
|
322,981
|
|
|
1,140,494
|
|
||||||
Private equity/venture capital
|
|
426,985
|
|
|
445,677
|
|
|
677,568
|
|
|
568,743
|
|
|
2,502,326
|
|
|
4,621,299
|
|
||||||
Life science & healthcare
|
|
340,214
|
|
|
238,585
|
|
|
284,618
|
|
|
216,805
|
|
|
220,505
|
|
|
1,300,727
|
|
||||||
Premium wine
|
|
77,409
|
|
|
38,413
|
|
|
45,222
|
|
|
28,098
|
|
|
—
|
|
|
189,142
|
|
||||||
Other
|
|
101,779
|
|
|
42,906
|
|
|
36,904
|
|
|
23,235
|
|
|
31,695
|
|
|
236,519
|
|
||||||
Commercial loans
|
|
2,364,982
|
|
|
1,661,928
|
|
|
2,458,761
|
|
|
1,901,253
|
|
|
4,097,503
|
|
|
12,484,427
|
|
||||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premium wine
|
|
151,314
|
|
|
169,719
|
|
|
205,692
|
|
|
80,782
|
|
|
—
|
|
|
607,507
|
|
||||||
Consumer loans
|
|
977,747
|
|
|
139,914
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,117,661
|
|
||||||
Other
|
|
—
|
|
|
6,000
|
|
|
11,250
|
|
|
22,733
|
|
|
—
|
|
|
39,983
|
|
||||||
Real estate secured loans
|
|
1,129,061
|
|
|
315,633
|
|
|
216,942
|
|
|
103,515
|
|
|
—
|
|
|
1,765,151
|
|
||||||
Construction loans
|
|
14,069
|
|
|
24,194
|
|
|
40,588
|
|
|
—
|
|
|
—
|
|
|
78,851
|
|
||||||
Consumer loans
|
|
65,326
|
|
|
22,593
|
|
|
16,418
|
|
|
20,000
|
|
|
36,000
|
|
|
160,337
|
|
||||||
Total gross loans
|
|
$
|
3,573,438
|
|
|
$
|
2,024,348
|
|
|
$
|
2,732,709
|
|
|
$
|
2,024,768
|
|
|
$
|
4,133,503
|
|
|
$
|
14,488,766
|
|
|
|
December 31, 2013
|
||||||||||||||||||||||
(Dollars in thousands)
|
|
Less than
Five Million
|
|
Five to Ten
Million
|
|
Ten to Twenty
Million
|
|
Twenty to Thirty Million
|
|
Thirty Million
or More
|
|
Total
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
1,031,179
|
|
|
$
|
647,060
|
|
|
$
|
905,815
|
|
|
$
|
832,375
|
|
|
$
|
724,929
|
|
|
$
|
4,141,358
|
|
Hardware
|
|
280,794
|
|
|
205,705
|
|
|
187,140
|
|
|
235,973
|
|
|
314,868
|
|
|
1,224,480
|
|
||||||
Private equity/venture capital
|
|
328,073
|
|
|
248,787
|
|
|
371,980
|
|
|
201,193
|
|
|
1,258,393
|
|
|
2,408,426
|
|
||||||
Life science & healthcare
|
|
332,991
|
|
|
262,420
|
|
|
249,749
|
|
|
122,426
|
|
|
213,680
|
|
|
1,181,266
|
|
||||||
Premium wine
|
|
77,431
|
|
|
24,667
|
|
|
24,810
|
|
|
24,347
|
|
|
—
|
|
|
151,255
|
|
||||||
Other
|
|
131,351
|
|
|
48,698
|
|
|
—
|
|
|
76,581
|
|
|
35,000
|
|
|
291,630
|
|
||||||
Commercial loans
|
|
2,181,819
|
|
|
1,437,337
|
|
|
1,739,494
|
|
|
1,492,895
|
|
|
2,546,870
|
|
|
9,398,415
|
|
||||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premium wine
|
|
136,748
|
|
|
128,291
|
|
|
146,439
|
|
|
73,594
|
|
|
30,870
|
|
|
515,942
|
|
||||||
Consumer loans
|
|
760,693
|
|
|
82,545
|
|
|
9,832
|
|
|
20,000
|
|
|
—
|
|
|
873,070
|
|
||||||
Other
|
|
2,500
|
|
|
5,000
|
|
|
—
|
|
|
23,533
|
|
|
—
|
|
|
31,033
|
|
||||||
Real estate secured loans
|
|
899,941
|
|
|
215,836
|
|
|
156,271
|
|
|
117,127
|
|
|
30,870
|
|
|
1,420,045
|
|
||||||
Construction loans
|
|
16,432
|
|
|
48,359
|
|
|
12,374
|
|
|
—
|
|
|
—
|
|
|
77,165
|
|
||||||
Consumer loans
|
|
46,019
|
|
|
20,022
|
|
|
600
|
|
|
3,003
|
|
|
29,999
|
|
|
99,643
|
|
||||||
Total gross loans
|
|
$
|
3,144,211
|
|
|
$
|
1,721,554
|
|
|
$
|
1,908,739
|
|
|
$
|
1,613,025
|
|
|
$
|
2,607,739
|
|
|
$
|
10,995,268
|
|
|
|
Remaining Contractual Maturity of Gross Loans
|
||||||||||||||
(Dollars in thousands)
|
|
One Year or Less
|
|
After One Year and Through Five Years
|
|
After Five Years
|
|
Total
|
||||||||
Fixed rate loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
110,308
|
|
|
$
|
488,450
|
|
|
$
|
—
|
|
|
$
|
598,758
|
|
Hardware
|
|
41,106
|
|
|
84,254
|
|
|
—
|
|
|
125,360
|
|
||||
Private equity/venture capital
|
|
5,697
|
|
|
100,979
|
|
|
1,110
|
|
|
107,786
|
|
||||
Life science & healthcare
|
|
37,549
|
|
|
555,642
|
|
|
—
|
|
|
593,191
|
|
||||
Premium wine
|
|
2,084
|
|
|
5,444
|
|
|
2,147
|
|
|
9,675
|
|
||||
Other
|
|
63,082
|
|
|
16,725
|
|
|
—
|
|
|
79,807
|
|
||||
Total commercial loans
|
|
259,826
|
|
|
1,251,494
|
|
|
3,257
|
|
|
1,514,577
|
|
||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
||||||||
Premium wine
|
|
806
|
|
|
119,996
|
|
|
338,675
|
|
|
459,477
|
|
||||
Consumer loans
|
|
4,057
|
|
|
63,643
|
|
|
185,292
|
|
|
252,992
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
22,733
|
|
|
22,733
|
|
||||
Total real estate secured loans
|
|
4,863
|
|
|
183,639
|
|
|
546,700
|
|
|
735,202
|
|
||||
Construction loans
|
|
53,321
|
|
|
15,949
|
|
|
3,502
|
|
|
72,772
|
|
||||
Consumer loans
|
|
5,923
|
|
|
7,010
|
|
|
—
|
|
|
12,933
|
|
||||
Total fixed-rate loans
|
|
$
|
323,933
|
|
|
$
|
1,458,092
|
|
|
$
|
553,459
|
|
|
$
|
2,335,484
|
|
|
|
|
|
|
|
|
|
|
||||||||
Variable-rate loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
926,889
|
|
|
$
|
3,364,096
|
|
|
$
|
106,503
|
|
|
$
|
4,397,488
|
|
Hardware
|
|
361,913
|
|
|
653,221
|
|
|
—
|
|
|
1,015,134
|
|
||||
Private equity/venture capital
|
|
2,800,540
|
|
|
1,687,419
|
|
|
25,554
|
|
|
4,513,513
|
|
||||
Life science & healthcare
|
|
82,553
|
|
|
624,983
|
|
|
—
|
|
|
707,536
|
|
||||
Premium wine
|
|
115,630
|
|
|
62,108
|
|
|
1,729
|
|
|
179,467
|
|
||||
Other
|
|
75,128
|
|
|
58,349
|
|
|
23,235
|
|
|
156,712
|
|
||||
Total commercial loans
|
|
4,362,653
|
|
|
6,450,176
|
|
|
157,021
|
|
|
10,969,850
|
|
||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
||||||||
Premium wine
|
|
28,547
|
|
|
51,146
|
|
|
68,337
|
|
|
148,030
|
|
||||
Consumer loans
|
|
17,385
|
|
|
30,434
|
|
|
816,850
|
|
|
864,669
|
|
||||
Other
|
|
—
|
|
|
17,250
|
|
|
—
|
|
|
17,250
|
|
||||
Total real estate secured loans
|
|
45,932
|
|
|
98,830
|
|
|
885,187
|
|
|
1,029,949
|
|
||||
Construction loans
|
|
6,051
|
|
|
28
|
|
|
—
|
|
|
6,079
|
|
||||
Consumer loans
|
|
64,974
|
|
|
74,904
|
|
|
7,526
|
|
|
147,404
|
|
||||
Total variable-rate loans
|
|
$
|
4,479,610
|
|
|
$
|
6,623,938
|
|
|
$
|
1,049,734
|
|
|
$
|
12,153,282
|
|
Total gross loans
|
|
$
|
4,803,543
|
|
|
$
|
8,082,030
|
|
|
$
|
1,603,193
|
|
|
$
|
14,488,766
|
|
|
|
Year ended December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Allowance for loan losses balance, beginning of year
|
|
$
|
142,886
|
|
|
$
|
110,651
|
|
|
$
|
89,947
|
|
|
$
|
82,627
|
|
|
$
|
72,450
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software and internet
|
|
(21,031
|
)
|
|
(8,861
|
)
|
|
(4,316
|
)
|
|
(10,252
|
)
|
|
(16,230
|
)
|
|||||
Hardware
|
|
(15,265
|
)
|
|
(18,819
|
)
|
|
(20,247
|
)
|
|
(4,828
|
)
|
|
(10,568
|
)
|
|||||
Life science & healthcare
|
|
(2,951
|
)
|
|
(6,010
|
)
|
|
(5,080
|
)
|
|
(4,201
|
)
|
|
(17,629
|
)
|
|||||
Premium wine
|
|
(35
|
)
|
|
—
|
|
|
(584
|
)
|
|
(449
|
)
|
|
(1,457
|
)
|
|||||
Other
|
|
(3,886
|
)
|
|
(8,107
|
)
|
|
(2,485
|
)
|
|
(3,954
|
)
|
|
(4,866
|
)
|
|||||
Total commercial loans
|
|
(43,168
|
)
|
|
(41,797
|
)
|
|
(32,712
|
)
|
|
(23,684
|
)
|
|
(50,750
|
)
|
|||||
Consumer loans
|
|
—
|
|
|
(869
|
)
|
|
(607
|
)
|
|
(220
|
)
|
|
(489
|
)
|
|||||
Total charge-offs
|
|
(43,168
|
)
|
|
(42,666
|
)
|
|
(33,319
|
)
|
|
(23,904
|
)
|
|
(51,239
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software and internet
|
|
1,425
|
|
|
1,934
|
|
|
4,874
|
|
|
11,659
|
|
|
5,838
|
|
|||||
Hardware
|
|
2,238
|
|
|
2,677
|
|
|
1,107
|
|
|
455
|
|
|
5,715
|
|
|||||
Life science & healthcare
|
|
374
|
|
|
1,860
|
|
|
334
|
|
|
6,644
|
|
|
3,738
|
|
|||||
Premium wine
|
|
240
|
|
|
170
|
|
|
650
|
|
|
1,223
|
|
|
222
|
|
|||||
Other
|
|
1,499
|
|
|
2,995
|
|
|
1,377
|
|
|
471
|
|
|
737
|
|
|||||
Total commercial loans
|
|
5,776
|
|
|
9,636
|
|
|
8,342
|
|
|
20,452
|
|
|
16,250
|
|
|||||
Consumer loans
|
|
379
|
|
|
1,572
|
|
|
1,351
|
|
|
4,671
|
|
|
538
|
|
|||||
Total recoveries
|
|
6,155
|
|
|
11,208
|
|
|
9,693
|
|
|
25,123
|
|
|
16,788
|
|
|||||
Provision for loan losses
|
|
59,486
|
|
|
63,693
|
|
|
44,330
|
|
|
6,101
|
|
|
44,628
|
|
|||||
Allowance for loan losses balance, end of year
|
|
$
|
165,359
|
|
|
$
|
142,886
|
|
|
$
|
110,651
|
|
|
$
|
89,947
|
|
|
$
|
82,627
|
|
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
ALLL Amount
|
|
Loans as Percent of Total Loans (1)
|
|
ALLL Amount
|
|
Loans as Percent of Total Loans (1)
|
|
ALLL Amount
|
|
Loans as Percent of Total Loans (1)
|
|
ALLL Amount
|
|
Loans as Percent of Total Loans (1)
|
|
ALLL Amount
|
|
Loans as Percent of Total Loans (1)
|
|||||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Software and internet
|
|
$
|
80,981
|
|
|
34.5
|
%
|
|
$
|
64,084
|
|
|
37.7
|
%
|
|
$
|
42,648
|
|
|
36.5
|
%
|
|
$
|
38,263
|
|
|
35.8
|
%
|
|
$
|
29,288
|
|
|
33.0
|
%
|
Hardware
|
|
25,860
|
|
|
7.9
|
|
|
36,553
|
|
|
11.1
|
|
|
29,761
|
|
|
12.5
|
|
|
16,810
|
|
|
13.7
|
|
|
14,688
|
|
|
11.6
|
|
|||||
Private equity/venture capital
|
|
27,997
|
|
|
31.9
|
|
|
16,385
|
|
|
21.9
|
|
|
9,963
|
|
|
19.4
|
|
|
7,319
|
|
|
16.1
|
|
|
8,241
|
|
|
18.8
|
|
|||||
Life science & healthcare
|
|
15,208
|
|
|
9.0
|
|
|
11,926
|
|
|
10.7
|
|
|
13,606
|
|
|
11.9
|
|
|
10,243
|
|
|
12.4
|
|
|
9,077
|
|
|
10.5
|
|
|||||
Premium wine
|
|
4,473
|
|
|
5.5
|
|
|
3,914
|
|
|
6.1
|
|
|
3,523
|
|
|
6.2
|
|
|
3,914
|
|
|
6.8
|
|
|
5,492
|
|
|
8.2
|
|
|||||
Other
|
|
3,253
|
|
|
2.4
|
|
|
3,680
|
|
|
3.7
|
|
|
3,912
|
|
|
4.3
|
|
|
5,817
|
|
|
5.3
|
|
|
5,318
|
|
|
7.9
|
|
|||||
Total commercial loans
|
|
157,772
|
|
|
91.2
|
|
|
136,542
|
|
|
91.2
|
|
|
103,413
|
|
|
90.8
|
|
|
82,366
|
|
|
90.1
|
|
|
72,104
|
|
|
90.0
|
|
|||||
Consumer loans
|
|
7,587
|
|
|
8.8
|
|
|
6,344
|
|
|
8.8
|
|
|
7,238
|
|
|
9.2
|
|
|
7,581
|
|
|
9.9
|
|
|
10,523
|
|
|
10.0
|
|
|||||
Total
|
|
$
|
165,359
|
|
|
100.0
|
%
|
|
$
|
142,886
|
|
|
100.0
|
%
|
|
$
|
110,651
|
|
|
100.0
|
%
|
|
$
|
89,947
|
|
|
100.0
|
%
|
|
$
|
82,627
|
|
|
100.0
|
%
|
|
(1)
|
Represents loan category as a percentage of total gross loans as of year-end.
|
|
|
December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Gross nonperforming, past due, and restructured loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired loans
|
|
$
|
38,137
|
|
|
$
|
51,649
|
|
|
$
|
38,279
|
|
|
$
|
36,617
|
|
|
$
|
39,426
|
|
Loans past due 90 days or more still accruing interest
|
|
1,302
|
|
|
99
|
|
|
19
|
|
|
—
|
|
|
44
|
|
|||||
Total nonperforming loans
|
|
39,439
|
|
|
51,748
|
|
|
38,298
|
|
|
36,617
|
|
|
39,470
|
|
|||||
OREO and other foreclosed assets
|
|
561
|
|
|
1,001
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming assets
|
|
$
|
40,000
|
|
|
$
|
52,749
|
|
|
$
|
38,298
|
|
|
$
|
36,617
|
|
|
$
|
39,470
|
|
Performing TDRs
|
|
$
|
587
|
|
|
$
|
403
|
|
|
$
|
734
|
|
|
$
|
2,100
|
|
|
$
|
—
|
|
Nonperforming loans as a percentage of total gross loans
|
|
0.27
|
%
|
|
0.47
|
%
|
|
0.42
|
%
|
|
0.52
|
%
|
|
0.71
|
%
|
|||||
Nonperforming assets as a percentage of total assets
|
|
0.10
|
|
|
0.20
|
|
|
0.17
|
|
|
0.18
|
|
|
0.22
|
|
|||||
Allowance for loan losses
|
|
$
|
165,359
|
|
|
$
|
142,886
|
|
|
$
|
110,651
|
|
|
$
|
89,947
|
|
|
$
|
82,627
|
|
As a percentage of total gross loans
|
|
1.14
|
%
|
|
1.30
|
%
|
|
1.23
|
%
|
|
1.28
|
%
|
|
1.48
|
%
|
|||||
As a percentage of total gross nonperforming loans
|
|
419.28
|
|
|
276.12
|
|
|
288.92
|
|
|
245.64
|
|
|
209.34
|
|
|||||
Allowance for loan losses for impaired loans
|
|
$
|
15,051
|
|
|
$
|
21,277
|
|
|
$
|
6,261
|
|
|
$
|
3,707
|
|
|
$
|
6,936
|
|
As a percentage of total gross loans
|
|
0.10
|
%
|
|
0.19
|
%
|
|
0.07
|
%
|
|
0.05
|
%
|
|
0.12
|
%
|
|||||
As a percentage of total gross nonperforming loans
|
|
38.16
|
|
|
41.12
|
|
|
16.35
|
|
|
10.12
|
|
|
17.57
|
|
|||||
Allowance for loan losses for total gross performing loans
|
|
$
|
150,308
|
|
|
$
|
121,609
|
|
|
$
|
104,390
|
|
|
$
|
86,240
|
|
|
$
|
75,691
|
|
As a percentage of total gross loans
|
|
1.04
|
%
|
|
1.11
|
%
|
|
1.16
|
%
|
|
1.23
|
%
|
|
1.36
|
%
|
|||||
As a percentage of total gross performing loans
|
|
1.04
|
|
|
1.11
|
|
|
1.16
|
|
|
1.23
|
|
|
1.37
|
|
|||||
Total gross loans
|
|
$
|
14,488,766
|
|
|
$
|
10,995,268
|
|
|
$
|
9,024,248
|
|
|
$
|
7,030,321
|
|
|
$
|
5,567,205
|
|
Total gross performing loans
|
|
14,449,327
|
|
|
10,943,520
|
|
|
8,985,950
|
|
|
6,993,704
|
|
|
5,527,735
|
|
|||||
Reserve for unfunded credit commitments (1)
|
|
36,419
|
|
|
29,983
|
|
|
22,299
|
|
|
21,811
|
|
|
17,414
|
|
|||||
As a percentage of total unfunded credit commitments
|
|
0.25
|
%
|
|
0.26
|
%
|
|
0.26
|
%
|
|
0.27
|
%
|
|
0.25
|
%
|
|||||
Total unfunded credit commitments (2)
|
|
$
|
14,705,785
|
|
|
$
|
11,470,722
|
|
|
$
|
8,610,791
|
|
|
$
|
8,067,570
|
|
|
$
|
6,918,689
|
|
|
(1)
|
The “Reserve for unfunded credit commitments” is included as a component of other liabilities. See “Provision for Unfunded Credit Commitments” above for a discussion of the changes to the reserve.
|
(2)
|
Includes unfunded loan commitments and letters of credit.
|
|
|
December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software and internet
|
|
$
|
33,287
|
|
|
$
|
27,618
|
|
|
$
|
3,263
|
|
|
$
|
1,142
|
|
|
$
|
3,292
|
|
Hardware
|
|
2,521
|
|
|
19,667
|
|
|
21,863
|
|
|
5,183
|
|
|
3,824
|
|
|||||
Private equity/venture capital
|
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Life science & healthcare
|
|
475
|
|
|
1,278
|
|
|
—
|
|
|
311
|
|
|
3,412
|
|
|||||
Premium wine
|
|
1,304
|
|
|
1,442
|
|
|
4,398
|
|
|
3,212
|
|
|
6,162
|
|
|||||
Other
|
|
233
|
|
|
690
|
|
|
5,415
|
|
|
5,353
|
|
|
2,177
|
|
|||||
Total commercial loans
|
|
37,820
|
|
|
50,735
|
|
|
34,939
|
|
|
15,201
|
|
|
18,867
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate secured loans
|
|
192
|
|
|
244
|
|
|
2,239
|
|
|
18,283
|
|
|
20,559
|
|
|||||
Other consumer loans
|
|
125
|
|
|
670
|
|
|
1,101
|
|
|
3,133
|
|
|
—
|
|
|||||
Total consumer loans
|
|
317
|
|
|
914
|
|
|
3,340
|
|
|
21,416
|
|
|
20,559
|
|
|||||
Total nonaccrual loans
|
|
$
|
38,137
|
|
|
$
|
51,649
|
|
|
$
|
38,279
|
|
|
$
|
36,617
|
|
|
$
|
39,426
|
|
|
|
December 31,
|
|||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|||||
Derivative assets, gross (1)
|
|
$
|
157,990
|
|
|
$
|
127,114
|
|
|
24.3
|
%
|
Accrued interest receivable
|
|
94,180
|
|
|
67,772
|
|
|
39.0
|
|
||
FHLB and Federal Reserve Bank stock
|
|
53,496
|
|
|
40,632
|
|
|
31.7
|
|
||
Foreign exchange spot contract assets, gross
|
|
51,972
|
|
|
73,423
|
|
|
(29.2
|
)
|
||
Net deferred tax assets
|
|
49,921
|
|
|
68,237
|
|
|
(26.8
|
)
|
||
Accounts receivable
|
|
20,092
|
|
|
15,773
|
|
|
27.4
|
|
||
Other assets
|
|
131,580
|
|
|
72,159
|
|
|
82.3
|
|
||
Total accrued interest receivable and other assets
|
|
$
|
559,231
|
|
|
$
|
465,110
|
|
|
20.2
|
|
|
(1)
|
See “Derivatives” section below.
|
|
|
December 31,
|
|||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|||||
Assets:
|
|
|
|
|
|
|
|||||
Equity warrant assets
|
|
$
|
116,604
|
|
|
$
|
103,513
|
|
|
12.6
|
%
|
Foreign exchange forward and option contracts
|
|
34,231
|
|
|
15,530
|
|
|
120.4
|
|
||
Interest rate swaps
|
|
4,609
|
|
|
6,492
|
|
|
(29.0
|
)
|
||
Client interest rate derivatives
|
|
2,546
|
|
|
1,265
|
|
|
101.3
|
|
||
Loan conversion options
|
|
—
|
|
|
314
|
|
|
(100.0
|
)
|
||
Total derivatives assets
|
|
$
|
157,990
|
|
|
$
|
127,114
|
|
|
24.3
|
|
Liabilities:
|
|
|
|
|
|
|
|||||
Foreign exchange forward and option contracts
|
|
$
|
(28,363
|
)
|
|
$
|
(12,617
|
)
|
|
124.8
|
|
Client interest rate derivatives
|
|
(2,748
|
)
|
|
(1,396
|
)
|
|
96.8
|
|
||
Total derivatives liabilities
|
|
$
|
(31,111
|
)
|
|
$
|
(14,013
|
)
|
|
122.0
|
|
|
|
Year ended December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Balance, beginning of period
|
|
$
|
103,513
|
|
|
$
|
74,272
|
|
New equity warrant assets
|
|
16,073
|
|
|
13,218
|
|
||
Non-cash increases in fair value
|
|
42,636
|
|
|
37,835
|
|
||
Exercised equity warrant assets
|
|
(44,762
|
)
|
|
(21,362
|
)
|
||
Terminated equity warrant assets
|
|
(856
|
)
|
|
(450
|
)
|
||
Balance, end of period (1)
|
|
$
|
116,604
|
|
|
$
|
103,513
|
|
|
(1)
|
Of the 1,478 company warrants held as of December 31, 2014, 25 companies made up approximately 35% of the fair value of the portfolio at December 31, 2014.
|
|
|
December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Noninterest-bearing demand
|
|
$
|
24,583,682
|
|
|
$
|
15,894,360
|
|
|
$
|
13,875,275
|
|
Negotiable order of withdrawal (NOW)
|
|
254,462
|
|
|
151,746
|
|
|
133,260
|
|
|||
Money market
|
|
6,186,044
|
|
|
4,373,974
|
|
|
2,969,769
|
|
|||
Money market deposits in foreign offices
|
|
242,526
|
|
|
181,299
|
|
|
110,915
|
|
|||
Sweep deposits in foreign offices
|
|
2,948,658
|
|
|
1,657,740
|
|
|
1,932,045
|
|
|||
Time
|
|
128,127
|
|
|
213,860
|
|
|
155,188
|
|
|||
Total deposits
|
|
$
|
34,343,499
|
|
|
$
|
22,472,979
|
|
|
$
|
19,176,452
|
|
|
|
December 31, 2014
|
||||||||||||||||||
(Dollars in thousands)
|
|
Three months
or less
|
|
More than
three months
to six months
|
|
More than six
months to
twelve months
|
|
More than
twelve months
|
|
Total
|
||||||||||
Time deposits, $100,000 and over
|
|
$
|
86,136
|
|
|
$
|
10,145
|
|
|
$
|
20,079
|
|
|
$
|
—
|
|
|
$
|
116,360
|
|
Other time deposits
|
|
7,127
|
|
|
2,166
|
|
|
2,474
|
|
|
—
|
|
|
11,767
|
|
|||||
Total time deposits
|
|
$
|
93,263
|
|
|
$
|
12,311
|
|
|
$
|
22,553
|
|
|
$
|
—
|
|
|
$
|
128,127
|
|
|
|
December 31,
|
|||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|||||||||
Federal funds purchased
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
160,000
|
|
|
0.07
|
%
|
Other short-term borrowings
|
|
7,781
|
|
|
0.08
|
|
|
5,080
|
|
|
0.08
|
|
|
6,110
|
|
|
0.16
|
|
|||
Total short-term borrowings
|
|
7,781
|
|
|
0.08
|
|
|
5,080
|
|
|
0.08
|
|
|
166,110
|
|
|
0.07
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Average daily balances:
|
|
|
|
|
|
|
||||||
Federal Funds purchased (1)
|
|
$
|
167
|
|
|
$
|
13,729
|
|
|
$
|
30,638
|
|
FHLB advances
|
|
1,096
|
|
|
7,959
|
|
|
32,036
|
|
|||
Securities (purchased) sold under agreements to repurchase
|
|
—
|
|
|
(435
|
)
|
|
3,341
|
|
|||
Other short-term borrowings (2)
|
|
5,001
|
|
|
5,765
|
|
|
4,787
|
|
|||
Total average short-term borrowings
|
|
$
|
6,264
|
|
|
$
|
27,018
|
|
|
$
|
70,802
|
|
Maximum month-end balances:
|
|
|
|
|
|
|
||||||
Federal Funds purchased
|
|
$
|
—
|
|
|
$
|
15,000
|
|
|
$
|
315,000
|
|
FHLB advances
|
|
—
|
|
|
—
|
|
|
530,000
|
|
|||
Securities (purchased) sold under agreements to repurchase
|
|
—
|
|
|
(5,120
|
)
|
|
—
|
|
|||
Other short-term borrowings
|
|
7,781
|
|
|
7,460
|
|
|
6,570
|
|
|
(1)
|
As part of our liquidity risk management practices, we periodically test availability and access to overnight borrowings in the Fed Funds market. These balances represent short-term borrowings.
|
(2)
|
Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor and our interest rate swap agreement related to our 6.05% Subordinated Notes.
|
|
|
Principal value at December 31, 2014
|
|
December 31,
|
||||||||||||
(Dollars in thousands)
|
|
|
2014
|
|
2013
|
|
2012
|
|||||||||
5.375% Senior Notes
|
|
$
|
350,000
|
|
|
$
|
348,436
|
|
|
$
|
348,209
|
|
|
$
|
347,995
|
|
6.05% Subordinated Notes
|
|
45,964
|
|
|
50,162
|
|
|
51,987
|
|
|
54,571
|
|
||||
Junior Subordinated Debentures
|
|
50,000
|
|
|
54,845
|
|
|
55,020
|
|
|
55,196
|
|
||||
Total long-term debt
|
|
$
|
445,964
|
|
|
$
|
453,443
|
|
|
$
|
455,216
|
|
|
$
|
457,762
|
|
|
|
December 31,
|
|||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|||||
Accrued compensation
|
|
$
|
120,841
|
|
|
$
|
117,134
|
|
|
3.2
|
%
|
Foreign exchange spot contract liabilities, gross
|
|
94,999
|
|
|
90,725
|
|
|
4.7
|
|
||
Reserve for unfunded credit commitments
|
|
36,419
|
|
|
29,983
|
|
|
21.5
|
|
||
Derivative liabilities, gross (1)
|
|
31,111
|
|
|
14,013
|
|
|
122.0
|
|
||
Other
|
|
200,123
|
|
|
152,731
|
|
|
31.0
|
|
||
Total other liabilities
|
|
$
|
483,493
|
|
|
$
|
404,586
|
|
|
19.5
|
|
|
(1)
|
See “Derivatives” section above.
|
|
|
December 31,
|
|
Minimum ratio to be “Well Capitalized”
|
|
Minimum ratio to be “Adequately Capitalized”
|
|||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
|
|||||||
SVB Financial:
|
|
|
|
|
|
|
|
|
|
|
|||||
Total risk-based capital ratio
|
|
13.92
|
%
|
|
13.13
|
%
|
|
14.05
|
%
|
|
10.0
|
%
|
|
8.0
|
%
|
Tier 1 risk-based capital ratio
|
|
12.91
|
|
|
11.94
|
|
|
12.79
|
|
|
6.0
|
|
|
4.0
|
|
Tier 1 leverage ratio
|
|
7.74
|
|
|
8.31
|
|
|
8.06
|
|
|
N/A
|
|
|
4.0
|
|
Tangible common equity to tangible assets ratio (1)(2)
|
|
7.16
|
|
|
7.44
|
|
|
8.04
|
|
|
N/A
|
|
|
N/A
|
|
Tangible common equity to risk-weighted assets ratio (1)(2)
|
|
12.95
|
|
|
11.63
|
|
|
13.53
|
|
|
N/A
|
|
|
N/A
|
|
Bank:
|
|
|
|
|
|
|
|
|
|
|
|||||
Total risk-based capital ratio
|
|
12.12
|
%
|
|
11.32
|
%
|
|
12.53
|
%
|
|
10.0
|
%
|
|
8.0
|
%
|
Tier 1 risk-based capital ratio
|
|
11.09
|
|
|
10.11
|
|
|
11.24
|
|
|
6.0
|
|
|
4.0
|
|
Tier 1 leverage ratio
|
|
6.64
|
|
|
7.04
|
|
|
7.06
|
|
|
5.0
|
|
|
4.0
|
|
Tangible common equity to tangible assets ratio (1)(2)
|
|
6.39
|
|
|
6.59
|
|
|
7.41
|
|
|
N/A
|
|
|
N/A
|
|
Tangible common equity to risk-weighted assets ratio (1)(2)
|
|
11.21
|
|
|
9.87
|
|
|
12.08
|
|
|
N/A
|
|
|
N/A
|
|
|
(1)
|
See below for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets.
|
(2)
|
The FRB has not issued any minimum guidelines for the tangible common equity to tangible assets ratio or the tangible common equity to risk-weighted assets ratio. However, we believe these ratios provide meaningful supplemental information regarding our capital levels and are therefore provided above.
|
Non-GAAP tangible common equity and tangible assets
(dollars in thousands, except ratios)
|
|
SVB Financial
|
||||||||||||||||||
|
December 31,
2014 |
|
December 31,
2013 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2010 |
|||||||||||
GAAP SVBFG stockholders’ equity
|
|
$
|
2,817,762
|
|
|
$
|
1,966,270
|
|
|
$
|
1,830,555
|
|
|
$
|
1,569,392
|
|
|
$
|
1,274,350
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
601
|
|
|
847
|
|
|||||
Tangible common equity
|
|
$
|
2,817,762
|
|
|
$
|
1,966,270
|
|
|
$
|
1,830,555
|
|
|
$
|
1,568,791
|
|
|
$
|
1,273,503
|
|
GAAP Total assets
|
|
$
|
39,344,640
|
|
|
$
|
26,417,189
|
|
|
$
|
22,766,123
|
|
|
$
|
19,968,894
|
|
|
$
|
17,527,761
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
601
|
|
|
847
|
|
|||||
Tangible assets
|
|
$
|
39,344,640
|
|
|
$
|
26,417,189
|
|
|
$
|
22,766,123
|
|
|
$
|
19,968,293
|
|
|
$
|
17,526,914
|
|
Risk-weighted assets (1)
|
|
$
|
21,755,091
|
|
|
$
|
16,901,501
|
|
|
$
|
13,532,984
|
|
|
$
|
11,837,902
|
|
|
$
|
9,406,677
|
|
Non-GAAP tangible common equity to tangible assets
|
|
7.16
|
%
|
|
7.44
|
%
|
|
8.04
|
%
|
|
7.86
|
%
|
|
7.27
|
%
|
|||||
Non-GAAP tangible common equity to risk-weighted assets
|
|
12.95
|
|
|
11.63
|
|
|
13.53
|
|
|
13.25
|
|
|
13.54
|
|
Non-GAAP tangible common equity and tangible assets
(dollars in thousands, except ratios)
|
|
Bank
|
||||||||||||||||||
|
December 31,
2014 |
|
December 31,
2013 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2010 |
|||||||||||
Tangible common equity
|
|
$
|
2,404,101
|
|
|
$
|
1,639,024
|
|
|
$
|
1,591,643
|
|
|
$
|
1,346,854
|
|
|
$
|
1,074,561
|
|
Tangible assets
|
|
$
|
37,612,663
|
|
|
$
|
24,854,119
|
|
|
$
|
21,471,111
|
|
|
$
|
18,758,813
|
|
|
$
|
16,268,589
|
|
Risk-weighted assets (1)
|
|
$
|
21,450,480
|
|
|
$
|
16,612,870
|
|
|
$
|
13,177,887
|
|
|
$
|
11,467,401
|
|
|
$
|
9,047,907
|
|
Tangible common equity to tangible assets
|
|
6.39
|
%
|
|
6.59
|
%
|
|
7.41
|
%
|
|
7.18
|
%
|
|
6.61
|
%
|
|||||
Tangible common equity to risk-weighted assets
|
|
11.21
|
|
|
9.87
|
|
|
12.08
|
|
|
11.75
|
|
|
11.88
|
|
|
(1)
|
Our risk-weighted assets for 2012 reflect a refinement in our determination of risk rating for certain unfunded credit commitments related to the contractual borrowing base.
|
|
|
Payments Due By Period
|
||||||||||||||||||
(Dollars in thousands)
|
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
4-5 years
|
|
After 5 years
|
||||||||||
SVBFG contractual obligations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings
|
|
$
|
461,224
|
|
|
$
|
7,781
|
|
|
$
|
50,162
|
|
|
$
|
—
|
|
|
$
|
403,281
|
|
Non-cancelable operating leases, net of income from subleases
|
|
189,378
|
|
|
21,683
|
|
|
41,281
|
|
|
42,216
|
|
|
84,198
|
|
|||||
Remaining unfunded commitments to other fund investments (1)
|
|
19,449
|
|
|
19,449
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Remaining unfunded commitments to Partners for Growth, LP
|
|
9,750
|
|
|
9,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Remaining unfunded commitments to debt funds (equity method accounting)
|
|
4,950
|
|
|
4,950
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commitments to low income housing tax credit funds
|
|
65,921
|
|
|
22,507
|
|
|
41,367
|
|
|
425
|
|
|
1,622
|
|
|||||
Other obligations
|
|
15,641
|
|
|
7,122
|
|
|
7,956
|
|
|
563
|
|
|
—
|
|
|||||
SVBFG unfunded commitments to our managed funds:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SVB Strategic Investors Fund, LP (1)
|
|
688
|
|
|
688
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Strategic Investors Fund II, LP (1)
|
|
1,050
|
|
|
1,050
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Strategic Investors Fund III, LP (1)
|
|
1,275
|
|
|
1,275
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Strategic Investors Fund IV, LP (1)
|
|
2,325
|
|
|
2,325
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Strategic Investors Fund V Funds (1)
|
|
209
|
|
|
209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Strategic Investors Fund VI Funds (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Capital - NT Growth Partners, LP (1)
|
|
1,340
|
|
|
1,340
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Silicon Valley BancVentures, LP (1)
|
|
270
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Capital Partners II, LP (1)
|
|
162
|
|
|
162
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Capital Partners III, LP (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Capital Shanghai Yangpu Venture Capital Fund (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total obligations attributable to SVBFG
|
|
$
|
773,632
|
|
|
$
|
100,561
|
|
|
$
|
140,766
|
|
|
$
|
43,204
|
|
|
$
|
489,101
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Remaining unfunded commitments to venture capital and private equity funds by our consolidated managed funds of funds:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SVB Strategic Investors Fund, LP (1)
|
|
$
|
2,250
|
|
|
$
|
2,250
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
SVB Strategic Investors Fund II, LP (1)
|
|
5,133
|
|
|
5,133
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Strategic Investors Fund III, LP (1)
|
|
12,706
|
|
|
12,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Strategic Investors Fund IV, LP (1)
|
|
36,503
|
|
|
36,503
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Strategic Investors Fund V Funds (1)
|
|
140,362
|
|
|
140,362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Strategic Investors Fund VI Funds (1)
|
|
254,248
|
|
|
254,248
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Capital Preferred Return Fund, LP (1)
|
|
5,163
|
|
|
5,163
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SVB Capital - NT Growth Partners, LP (1)
|
|
5,872
|
|
|
5,872
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other private equity fund (1)
|
|
77
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total obligations to venture capital and private equity funds by our consolidated managed funds of funds
|
|
$
|
462,314
|
|
|
$
|
462,314
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Amount of commitment expiring per period
|
||||||||||||||||||
(Dollars in thousands)
|
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
4-5 years
|
|
After 5 years
|
||||||||||
Other commercial commitments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loan commitments available for funding
|
|
$
|
13,451,447
|
|
|
$
|
7,923,450
|
|
|
$
|
4,285,750
|
|
|
$
|
1,137,042
|
|
|
$
|
105,205
|
|
Standby letters of credit
|
|
1,248,072
|
|
|
1,177,582
|
|
|
54,676
|
|
|
15,589
|
|
|
225
|
|
|||||
Commercial letters of credit
|
|
6,266
|
|
|
6,266
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
See Note 7–“Investment Securities” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 in this report, for further disclosure related to non-marketable and other securities. Subject to applicable regulatory requirements, including the Volcker Rule (See "Business - Supervision and Regulation" under Part I, Item 1 in this report), 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.
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Average cash and cash equivalents
|
|
$
|
2,697,926
|
|
|
$
|
1,584,042
|
|
|
$
|
1,494,961
|
|
Percentage of total average assets
|
|
8.2
|
%
|
|
6.8
|
%
|
|
7.0
|
%
|
|||
Net cash provided by operating activities
|
|
$
|
255,517
|
|
|
$
|
171,778
|
|
|
$
|
196,108
|
|
Net cash used for investing activities
|
|
(12,233,931
|
)
|
|
(2,838,988
|
)
|
|
(2,886,368
|
)
|
|||
Net cash provided by financing activities
|
|
12,250,649
|
|
|
3,197,006
|
|
|
2,584,295
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
$
|
272,235
|
|
|
$
|
529,796
|
|
|
$
|
(105,965
|
)
|
|
|
Estimated
|
|
Estimated Increase/(Decrease) In EVE
|
|
Estimated
|
|
Estimated Increase/
(Decrease) In NII
|
||||||||||||||
Change in interest rates (basis points)
|
|
EVE
|
|
Amount
|
|
Percent
|
|
NII
|
|
Amount
|
|
Percent
|
||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||||
December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
+200
|
|
$
|
6,201,773
|
|
|
$
|
1,237,900
|
|
|
24.9
|
%
|
|
$
|
1,242,321
|
|
|
$
|
223,059
|
|
|
21.9
|
%
|
+100
|
|
5,598,887
|
|
|
635,014
|
|
|
12.8
|
|
|
1,124,643
|
|
|
105,381
|
|
|
10.3
|
|
||||
—
|
|
4,963,873
|
|
|
—
|
|
|
—
|
|
|
1,019,262
|
|
|
—
|
|
|
—
|
|
||||
-100
|
|
4,927,749
|
|
|
(36,124
|
)
|
|
(0.7
|
)
|
|
979,982
|
|
|
(39,280
|
)
|
|
(3.9
|
)
|
||||
-200
|
|
5,119,636
|
|
|
155,763
|
|
|
3.1
|
|
|
953,556
|
|
|
(65,706
|
)
|
|
(6.4
|
)
|
||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
+200
|
|
$
|
4,656,411
|
|
|
$
|
477,866
|
|
|
11.4
|
%
|
|
$
|
990,190
|
|
|
$
|
161,314
|
|
|
19.5
|
%
|
+100
|
|
4,382,397
|
|
|
203,852
|
|
|
4.9
|
|
|
899,336
|
|
|
70,460
|
|
|
8.5
|
|
||||
—
|
|
4,178,545
|
|
|
—
|
|
|
—
|
|
|
828,876
|
|
|
—
|
|
|
—
|
|
||||
-100
|
|
3,960,086
|
|
|
(218,459
|
)
|
|
(5.2
|
)
|
|
826,222
|
|
|
(2,654
|
)
|
|
(0.3
|
)
|
||||
-200
|
|
4,041,604
|
|
|
(136,941
|
)
|
|
(3.3
|
)
|
|
822,448
|
|
|
(6,428
|
)
|
|
(0.8
|
)
|
|
|
December 31,
|
||||||
(Dollars in thousands, except par value and share data)
|
|
2014
|
|
2013
|
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,796,062
|
|
|
$
|
1,538,779
|
|
Available-for-sale securities, at fair value (cost of $13,497,945 and $12,055,524, respectively)
|
|
13,540,655
|
|
|
11,986,821
|
|
||
Held-to-maturity securities, at cost
(fair value of $7,415,656 and $0, respectively)
|
|
7,421,042
|
|
|
—
|
|
||
Non-marketable and other securities
|
|
1,728,888
|
|
|
1,595,494
|
|
||
Total investment securities
|
|
22,690,585
|
|
|
13,582,315
|
|
||
Loans, net of unearned income
|
|
14,384,276
|
|
|
10,906,386
|
|
||
Allowance for loan losses
|
|
(165,359
|
)
|
|
(142,886
|
)
|
||
Net loans
|
|
14,218,917
|
|
|
10,763,500
|
|
||
Premises and equipment, net of accumulated depreciation and amortization
|
|
79,845
|
|
|
67,485
|
|
||
Accrued interest receivable and other assets
|
|
559,231
|
|
|
465,110
|
|
||
Total assets
|
|
$
|
39,344,640
|
|
|
$
|
26,417,189
|
|
Liabilities and total equity
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Noninterest-bearing demand deposits
|
|
$
|
24,583,682
|
|
|
$
|
15,894,360
|
|
Interest-bearing deposits
|
|
9,759,817
|
|
|
6,578,619
|
|
||
Total deposits
|
|
34,343,499
|
|
|
22,472,979
|
|
||
Short-term borrowings
|
|
7,781
|
|
|
5,080
|
|
||
Other liabilities
|
|
483,493
|
|
|
404,586
|
|
||
Long-term debt
|
|
453,443
|
|
|
455,216
|
|
||
Total liabilities
|
|
35,288,216
|
|
|
23,337,861
|
|
||
Commitments and contingencies (Note 18 and Note 24)
|
|
|
|
|
|
|||
SVBFG stockholders’ equity:
|
|
|
|
|
||||
Preferred stock, $0.001 par value, 20,000,000 shares authorized;
no shares issued and outstanding |
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value, 150,000,000 shares authorized; 50,924,925
shares and 45,800,418 shares outstanding, respectively |
|
51
|
|
|
46
|
|
||
Additional paid-in capital
|
|
1,120,350
|
|
|
624,256
|
|
||
Retained earnings
|
|
1,654,657
|
|
|
1,390,732
|
|
||
Accumulated other comprehensive income (loss)
|
|
42,704
|
|
|
(48,764
|
)
|
||
Total SVBFG stockholders’ equity
|
|
2,817,762
|
|
|
1,966,270
|
|
||
Noncontrolling interests
|
|
1,238,662
|
|
|
1,113,058
|
|
||
Total equity
|
|
4,056,424
|
|
|
3,079,328
|
|
||
Total liabilities and total equity
|
|
$
|
39,344,640
|
|
|
$
|
26,417,189
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans
|
|
$
|
610,945
|
|
|
$
|
542,204
|
|
|
$
|
469,146
|
|
Investment securities:
|
|
|
|
|
|
|
||||||
Taxable
|
|
271,371
|
|
|
180,162
|
|
|
171,863
|
|
|||
Non-taxable
|
|
3,136
|
|
|
3,201
|
|
|
3,564
|
|
|||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities
|
|
6,464
|
|
|
4,054
|
|
|
4,145
|
|
|||
Total interest income
|
|
891,916
|
|
|
729,621
|
|
|
648,718
|
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Deposits
|
|
12,114
|
|
|
9,128
|
|
|
6,660
|
|
|||
Borrowings
|
|
23,207
|
|
|
23,149
|
|
|
24,194
|
|
|||
Total interest expense
|
|
35,321
|
|
|
32,277
|
|
|
30,854
|
|
|||
Net interest income
|
|
856,595
|
|
|
697,344
|
|
|
617,864
|
|
|||
Provision for loan losses
|
|
59,486
|
|
|
63,693
|
|
|
44,330
|
|
|||
Net interest income after provision for loan losses
|
|
797,109
|
|
|
633,651
|
|
|
573,534
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
||||||
Gains on investment securities, net
|
|
267,023
|
|
|
419,408
|
|
|
122,114
|
|
|||
Foreign exchange fees
|
|
71,659
|
|
|
57,411
|
|
|
52,433
|
|
|||
Gains on derivative instruments, net
|
|
96,845
|
|
|
42,184
|
|
|
18,679
|
|
|||
Deposit service charges
|
|
39,937
|
|
|
35,948
|
|
|
33,421
|
|
|||
Credit card fees
|
|
41,792
|
|
|
32,461
|
|
|
24,809
|
|
|||
Lending related fees
|
|
25,711
|
|
|
20,980
|
|
|
18,038
|
|
|||
Letters of credit and standby letters of credit fees
|
|
15,649
|
|
|
14,716
|
|
|
15,150
|
|
|||
Client investment fees
|
|
14,883
|
|
|
13,959
|
|
|
14,539
|
|
|||
Other
|
|
(1,260
|
)
|
|
36,139
|
|
|
36,363
|
|
|||
Total noninterest income
|
|
572,239
|
|
|
673,206
|
|
|
335,546
|
|
|||
Noninterest expense:
|
|
|
|
|
|
|
||||||
Compensation and benefits
|
|
409,486
|
|
|
366,801
|
|
|
326,942
|
|
|||
Professional services
|
|
94,377
|
|
|
76,178
|
|
|
67,845
|
|
|||
Premises and equipment
|
|
49,716
|
|
|
45,935
|
|
|
40,689
|
|
|||
Business development and travel
|
|
40,057
|
|
|
33,334
|
|
|
29,409
|
|
|||
Net occupancy
|
|
30,004
|
|
|
24,937
|
|
|
22,536
|
|
|||
FDIC assessments
|
|
19,206
|
|
|
12,784
|
|
|
10,959
|
|
|||
Correspondent bank fees
|
|
13,118
|
|
|
12,142
|
|
|
11,168
|
|
|||
Provision for unfunded credit commitments
|
|
6,511
|
|
|
7,642
|
|
|
488
|
|
|||
Other
|
|
54,396
|
|
|
41,927
|
|
|
35,962
|
|
|||
Total noninterest expense
|
|
716,871
|
|
|
621,680
|
|
|
545,998
|
|
|||
Income before income tax expense
|
|
652,477
|
|
|
685,177
|
|
|
363,082
|
|
|||
Income tax expense
|
|
173,762
|
|
|
139,058
|
|
|
113,269
|
|
|||
Net income before noncontrolling interests
|
|
478,715
|
|
|
546,119
|
|
|
249,813
|
|
|||
Net income attributable to noncontrolling interests
|
|
(214,790
|
)
|
|
(330,266
|
)
|
|
(74,710
|
)
|
|||
Net income available to common stockholders
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
|
$
|
175,103
|
|
Earnings per common share—basic
|
|
$
|
5.39
|
|
|
$
|
4.76
|
|
|
$
|
3.96
|
|
Earnings per common share—diluted
|
|
5.31
|
|
|
4.70
|
|
|
3.91
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net income before noncontrolling interests
|
|
$
|
478,715
|
|
|
$
|
546,119
|
|
|
$
|
249,813
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
||||||
Change in cumulative translation gains (losses):
|
|
|
|
|
|
|
||||||
Foreign currency translation gains (losses)
|
|
10,982
|
|
|
(5,483
|
)
|
|
(766
|
)
|
|||
Related tax (expense) benefit
|
|
(4,425
|
)
|
|
2,179
|
|
|
308
|
|
|||
Change in unrealized gains (losses) on available-for-sale securities:
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses)
|
|
92,815
|
|
|
(259,193
|
)
|
|
44,113
|
|
|||
Related tax (expense) benefit
|
|
(37,383
|
)
|
|
105,500
|
|
|
(17,921
|
)
|
|||
Reclassification adjustment for losses (gains) included in net income
|
|
18,598
|
|
|
(538
|
)
|
|
(4,241
|
)
|
|||
Related tax (benefit) expense
|
|
(7,510
|
)
|
|
218
|
|
|
1,661
|
|
|||
Cumulative-effect adjustment for unrealized gains on securities transferred from available-for-sale to held-to-maturity
|
|
37,700
|
|
|
—
|
|
|
—
|
|
|||
Related tax expense
|
|
(15,178
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity
|
|
(6,915
|
)
|
|
—
|
|
|
—
|
|
|||
Related tax benefit
|
|
2,784
|
|
|
—
|
|
|
—
|
|
|||
Other comprehensive income (loss), net of tax
|
|
91,468
|
|
|
(157,317
|
)
|
|
23,154
|
|
|||
Comprehensive income
|
|
570,183
|
|
|
388,802
|
|
|
272,967
|
|
|||
Comprehensive income attributable to noncontrolling interests
|
|
(214,790
|
)
|
|
(330,266
|
)
|
|
(74,710
|
)
|
|||
Comprehensive income attributable to SVBFG
|
|
$
|
355,393
|
|
|
$
|
58,536
|
|
|
$
|
198,257
|
|
|
|
Common Stock
|
|
Additional
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive Income (Loss)
|
|
Total SVBFG
Stockholders’ Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
|||||||||||||||||
(Dollars in thousands, except share data)
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2011
|
|
43,507,932
|
|
|
$
|
44
|
|
|
$
|
484,216
|
|
|
$
|
999,733
|
|
|
$
|
85,399
|
|
|
$
|
1,569,392
|
|
|
$
|
680,997
|
|
|
$
|
2,250,389
|
|
Common stock issued under employee benefit plans, net of restricted stock cancellations
|
|
1,045,690
|
|
|
1
|
|
|
29,281
|
|
|
—
|
|
|
—
|
|
|
29,282
|
|
|
—
|
|
|
29,282
|
|
|||||||
Common stock issued upon settlement of 3.875% Convertible Notes, net of shares received from associated convertible note hedge
|
|
73,560
|
|
|
—
|
|
|
4,344
|
|
|
—
|
|
|
—
|
|
|
4,344
|
|
|
—
|
|
|
4,344
|
|
|||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other
|
|
—
|
|
|
—
|
|
|
7,770
|
|
|
—
|
|
|
—
|
|
|
7,770
|
|
|
—
|
|
|
7,770
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175,103
|
|
|
—
|
|
|
175,103
|
|
|
74,710
|
|
|
249,813
|
|
|||||||
Capital calls and distributions, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59,057
|
|
|
59,057
|
|
|||||||
Net change in unrealized gains and losses on available-for-sale securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,612
|
|
|
23,612
|
|
|
—
|
|
|
23,612
|
|
|||||||
Foreign currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(458
|
)
|
|
(458
|
)
|
|
—
|
|
|
(458
|
)
|
|||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
21,468
|
|
|
—
|
|
|
—
|
|
|
21,468
|
|
|
—
|
|
|
21,468
|
|
|||||||
Deconsolidation of noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40,086
|
)
|
|
(40,086
|
)
|
|||||||
Other, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
42
|
|
|||||||
Balance at December 31, 2012
|
|
44,627,182
|
|
|
$
|
45
|
|
|
$
|
547,079
|
|
|
$
|
1,174,878
|
|
|
$
|
108,553
|
|
|
$
|
1,830,555
|
|
|
$
|
774,678
|
|
|
$
|
2,605,233
|
|
Common stock issued under employee benefit plans, net of restricted stock cancellations
|
|
1,098,290
|
|
|
$
|
1
|
|
|
$
|
41,403
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41,404
|
|
|
$
|
—
|
|
|
$
|
41,404
|
|
Common stock issued under ESOP
|
|
74,946
|
|
|
—
|
|
|
5,166
|
|
|
—
|
|
|
—
|
|
|
5,166
|
|
|
—
|
|
|
5,166
|
|
|||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other
|
|
—
|
|
|
—
|
|
|
5,658
|
|
|
—
|
|
|
—
|
|
|
5,658
|
|
|
—
|
|
|
5,658
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
215,853
|
|
|
—
|
|
|
215,853
|
|
|
330,266
|
|
|
546,119
|
|
|||||||
Capital calls and distributions, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,114
|
|
|
8,114
|
|
|||||||
Net change in unrealized gains and losses on available-for-sale securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154,013
|
)
|
|
(154,013
|
)
|
|
—
|
|
|
(154,013
|
)
|
|||||||
Foreign currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,304
|
)
|
|
(3,304
|
)
|
|
—
|
|
|
(3,304
|
)
|
|||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
24,947
|
|
|
—
|
|
|
—
|
|
|
24,947
|
|
|
—
|
|
|
24,947
|
|
|||||||
Other, net
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||||
Balance at December 31, 2013
|
|
45,800,418
|
|
|
$
|
46
|
|
|
$
|
624,256
|
|
|
$
|
1,390,732
|
|
|
$
|
(48,764
|
)
|
|
$
|
1,966,270
|
|
|
$
|
1,113,058
|
|
|
$
|
3,079,328
|
|
Common stock issued under employee benefit plans, net of restricted stock cancellations
|
|
608,745
|
|
|
$
|
—
|
|
|
$
|
18,256
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,256
|
|
|
$
|
—
|
|
|
$
|
18,256
|
|
Common stock issued under ESOP
|
|
30,762
|
|
|
—
|
|
|
3,890
|
|
|
—
|
|
|
—
|
|
|
3,890
|
|
|
—
|
|
|
3,890
|
|
|||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other
|
|
—
|
|
|
—
|
|
|
9,595
|
|
|
—
|
|
|
—
|
|
|
9,595
|
|
|
—
|
|
|
9,595
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
263,925
|
|
|
—
|
|
|
263,925
|
|
|
214,790
|
|
|
478,715
|
|
|||||||
Capital calls and distributions, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(89,186
|
)
|
|
(89,186
|
)
|
|||||||
Net change in unrealized gains and losses on available-for-sale securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,520
|
|
|
66,520
|
|
|
—
|
|
|
66,520
|
|
|||||||
Cumulative-effect for unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,522
|
|
|
22,522
|
|
|
—
|
|
|
22,522
|
|
|||||||
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,131
|
)
|
|
(4,131
|
)
|
|
—
|
|
|
(4,131
|
)
|
|||||||
Foreign currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,557
|
|
|
6,557
|
|
|
—
|
|
|
6,557
|
|
|||||||
Common stock issued in public offering
|
|
4,485,000
|
|
|
5
|
|
|
434,861
|
|
|
—
|
|
|
—
|
|
|
434,866
|
|
|
—
|
|
|
434,866
|
|
|||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
29,491
|
|
|
—
|
|
|
—
|
|
|
29,491
|
|
|
—
|
|
|
29,491
|
|
|||||||
Other, net
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Balance at December 31, 2014
|
|
50,924,925
|
|
|
$
|
51
|
|
|
$
|
1,120,350
|
|
|
$
|
1,654,657
|
|
|
$
|
42,704
|
|
|
$
|
2,817,762
|
|
|
$
|
1,238,662
|
|
|
$
|
4,056,424
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income before noncontrolling interests
|
|
$
|
478,715
|
|
|
$
|
546,119
|
|
|
$
|
249,813
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Provision for loan losses
|
|
59,486
|
|
|
63,693
|
|
|
44,330
|
|
|||
Provision for unfunded credit commitments
|
|
6,511
|
|
|
7,642
|
|
|
488
|
|
|||
Changes in fair values of derivatives, net
|
|
(22,139
|
)
|
|
(31,508
|
)
|
|
(10,123
|
)
|
|||
Gains on investment securities, net
|
|
(267,023
|
)
|
|
(419,408
|
)
|
|
(122,114
|
)
|
|||
Depreciation and amortization
|
|
39,696
|
|
|
35,894
|
|
|
28,122
|
|
|||
Impairment loss on SVBIF Sale Transaction
|
|
13,934
|
|
|
—
|
|
|
—
|
|
|||
Amortization of premiums and discounts on investment securities, net
|
|
25,311
|
|
|
29,774
|
|
|
55,580
|
|
|||
Tax (expense) benefit from stock exercises
|
|
(7
|
)
|
|
(1,167
|
)
|
|
2,189
|
|
|||
Amortization of share-based compensation
|
|
29,545
|
|
|
25,413
|
|
|
21,861
|
|
|||
Amortization of deferred loan fees
|
|
(82,724
|
)
|
|
(73,008
|
)
|
|
(58,517
|
)
|
|||
Deferred income tax (benefit) expense
|
|
(43,516
|
)
|
|
14,080
|
|
|
1,800
|
|
|||
Gain on the sale of certain assets related to our equity services management business
|
|
—
|
|
|
—
|
|
|
(4,243
|
)
|
|||
Changes in other assets and liabilities:
|
|
|
|
|
|
|
||||||
Accrued interest receivable and payable, net
|
|
(26,642
|
)
|
|
(3,241
|
)
|
|
(6,254
|
)
|
|||
Accounts receivable and payable, net
|
|
(302
|
)
|
|
(21
|
)
|
|
35,221
|
|
|||
Income tax receivable and payable, net
|
|
(4,804
|
)
|
|
(24,811
|
)
|
|
9,631
|
|
|||
Accrued compensation
|
|
3,707
|
|
|
22,925
|
|
|
(15,918
|
)
|
|||
Foreign exchange spot contracts, net
|
|
25,725
|
|
|
2,086
|
|
|
(50,901
|
)
|
|||
Other, net
|
|
20,044
|
|
|
(22,684
|
)
|
|
15,143
|
|
|||
Net cash provided by operating activities
|
|
255,517
|
|
|
171,778
|
|
|
196,108
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Purchases of available-for-sale securities
|
|
(8,462,071
|
)
|
|
(3,336,476
|
)
|
|
(3,877,852
|
)
|
|||
Proceeds from sales of available-for-sale securities
|
|
30,398
|
|
|
14,753
|
|
|
329,161
|
|
|||
Proceeds from maturities and pay downs of available-for-sale securities
|
|
1,569,173
|
|
|
2,428,023
|
|
|
2,734,166
|
|
|||
Purchases of held-to-maturity securities
|
|
(2,612,848
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from maturities and paydowns of held-to-maturity securities
|
|
598,454
|
|
|
—
|
|
|
—
|
|
|||
Purchases of non-marketable securities (cost and equity method accounting)
|
|
(60,202
|
)
|
|
(24,847
|
)
|
|
(126,318
|
)
|
|||
Proceeds from sales and distributions of non-marketable securities (cost and equity method accounting)
|
|
59,442
|
|
|
58,828
|
|
|
51,246
|
|
|||
Purchases of non-marketable and other securities (fair value accounting)
|
|
(275,640
|
)
|
|
(149,707
|
)
|
|
(135,362
|
)
|
|||
Proceeds from sales and distributions of non-marketable and other securities (fair value accounting)
|
|
436,170
|
|
|
132,931
|
|
|
124,538
|
|
|||
Net increase in loans
|
|
(3,480,531
|
)
|
|
(1,943,650
|
)
|
|
(1,964,250
|
)
|
|||
Proceeds from recoveries of charged-off loans
|
|
6,155
|
|
|
11,161
|
|
|
9,693
|
|
|||
Purchases of premises and equipment
|
|
(42,431
|
)
|
|
(30,004
|
)
|
|
(34,260
|
)
|
|||
Proceeds from the sale of certain assets related to our equity services management business
|
|
—
|
|
|
—
|
|
|
2,870
|
|
|||
Net cash used for investing activities
|
|
(12,233,931
|
)
|
|
(2,838,988
|
)
|
|
(2,886,368
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Net increase in deposits
|
|
11,870,520
|
|
|
3,296,527
|
|
|
2,466,916
|
|
|||
Increase (decrease) in short-term borrowings
|
|
2,701
|
|
|
(161,030
|
)
|
|
166,110
|
|
|||
Principal payments of other long term debt
|
|
—
|
|
|
—
|
|
|
(1,222
|
)
|
|||
Capital contributions from noncontrolling interests, net of distributions
|
|
(89,186
|
)
|
|
8,114
|
|
|
59,057
|
|
|||
Tax benefit from stock exercises
|
|
9,602
|
|
|
6,826
|
|
|
5,581
|
|
|||
Proceeds from issuance of common stock, ESPP, and ESOP
|
|
22,146
|
|
|
46,569
|
|
|
29,282
|
|
|||
Net proceeds from public equity offering
|
|
434,866
|
|
|
—
|
|
|
—
|
|
|||
Principal payments of 5.70% Senior Notes
|
|
—
|
|
|
—
|
|
|
(141,429
|
)
|
|||
Net cash provided by financing activities
|
|
12,250,649
|
|
|
3,197,006
|
|
|
2,584,295
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
272,235
|
|
|
529,796
|
|
|
(105,965
|
)
|
|||
Cash and cash equivalents at beginning of period
|
|
1,538,779
|
|
|
1,008,983
|
|
|
1,114,948
|
|
|||
Cash and cash equivalents at end of period (1)
|
|
$
|
1,811,014
|
|
|
$
|
1,538,779
|
|
|
$
|
1,008,983
|
|
Supplemental disclosures:
|
|
|
|
|
|
|
||||||
Cash paid during the period for:
|
|
|
|
|
|
|
||||||
Interest
|
|
$
|
35,181
|
|
|
$
|
31,913
|
|
|
$
|
31,048
|
|
Income taxes
|
|
208,558
|
|
|
142,231
|
|
|
95,678
|
|
|||
Noncash items during the period:
|
|
|
|
|
|
|
||||||
Changes in unrealized gains and losses on available-for-sale securities, net of tax
|
|
$
|
66,520
|
|
|
$
|
(154,013
|
)
|
|
$
|
23,612
|
|
Transfers from available-for-sale securities to held-to-maturity
|
|
5,418,572
|
|
|
—
|
|
|
—
|
|
|
(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.
|
1.
|
Nature of Business
|
2.
|
Summary of Significant Accounting Policies
|
1.
|
We have the power to direct the activities of the VIE that most significantly impact the entity’s economic performance;
|
2.
|
The aggregate indirect and direct variable interests held by the Company have the obligation to absorb losses or the right to receive benefits from the entity that could be significant to the VIE; and,
|
3.
|
Qualitative and quantitative factors regarding the nature, size, and form of our involvement with the VIE.
|
•
|
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.
|
•
|
Funds of funds; which make investments in venture capital and private equity funds;
|
•
|
Direct venture funds; which make equity investments in privately held companies.
|
Limited partnership
|
|
Company Direct and Indirect Ownership in Limited Partnership
|
|
Managed funds of funds
|
|
|
|
SVB Strategic Investors Fund, LP
|
|
12.6
|
%
|
SVB Strategic Investors Fund II, LP
|
|
8.6
|
|
SVB Strategic Investors Fund III, LP
|
|
5.9
|
|
SVB Strategic Investors Fund IV, LP
|
|
5.0
|
|
Strategic Investors Fund V Funds
|
|
Various
|
|
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
|
|
SVB Capital Partners II, LP
|
|
5.1
|
|
SVB Capital Shanghai Yangpu Venture Capital Fund
|
|
6.8
|
|
•
|
Equity securities, such as preferred or common stock in privately-held companies in which we hold a voting interest of at least
20 percent
but less than
50 percent
or in which we have the ability to exercise significant influence over the investees' operating and financial policies, are accounted for under the equity method.
|
•
|
Investments in limited partnerships in which we hold voting interests of more than
5 percent
, but less than
50 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 percent ownership, is accounted for under the equity method.
|
•
|
Equity securities, such as preferred or common stock in privately-held companies in which we hold an ownership interest of less than
20 percent
and 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.
|
•
|
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.
|
Leasehold improvements
|
|
Lesser of lease term or asset life
|
Furniture and equipment
|
|
3 years
|
Computer software
|
|
3-7 years
|
Computer hardware
|
|
3-5 years
|
•
|
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.
|
3.
|
Stockholders’ Equity and EPS
|
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
Income Statement Location
|
|
2014
|
|
2013
|
|
2012
|
||||||
Reclassification adjustment for losses (gains) included in net income
|
|
Gains on investment securities, net
|
|
$
|
18,598
|
|
|
$
|
(538
|
)
|
|
$
|
(4,241
|
)
|
Related tax (benefit) expense
|
|
Income tax expense
|
|
(7,510
|
)
|
|
218
|
|
|
1,661
|
|
|||
Total reclassification adjustment for losses (gains) included in net income, net of tax
|
|
|
|
$
|
11,088
|
|
|
$
|
(320
|
)
|
|
$
|
(2,580
|
)
|
|
|
Year ended December 31,
|
||||||||||
(Dollars and shares in thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Numerator:
|
|
|
|
|
|
|
||||||
Net income available to common stockholders
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
|
$
|
175,103
|
|
Denominator:
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding-basic
|
|
48,931
|
|
|
45,309
|
|
|
44,242
|
|
|||
Weighted average effect of dilutive securities:
|
|
|
|
|
|
|
||||||
Stock options and ESPP
|
|
485
|
|
|
431
|
|
|
370
|
|
|||
Restricted stock units
|
|
246
|
|
|
204
|
|
|
152
|
|
|||
Denominator for diluted calculation
|
|
49,662
|
|
|
45,944
|
|
|
44,764
|
|
|||
Earnings per common share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
5.39
|
|
|
$
|
4.76
|
|
|
$
|
3.96
|
|
Diluted
|
|
$
|
5.31
|
|
|
$
|
4.70
|
|
|
$
|
3.91
|
|
|
|
Year ended December 31,
|
|||||||
(Shares in thousands)
|
|
2014
|
|
2013
|
|
2012
|
|||
Stock options
|
|
161
|
|
|
261
|
|
|
695
|
|
Restricted stock units
|
|
—
|
|
|
105
|
|
|
—
|
|
Total
|
|
161
|
|
|
366
|
|
|
695
|
|
4.
|
Share-Based Compensation
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Share-based compensation expense
|
|
$
|
29,545
|
|
|
$
|
25,413
|
|
|
$
|
21,861
|
|
Income tax benefit related to share-based compensation expense
|
|
(9,923
|
)
|
|
(7,989
|
)
|
|
(6,011
|
)
|
|||
Capitalized compensation costs
|
|
2,048
|
|
|
2,809
|
|
|
2,647
|
|
(Dollars in thousands)
|
|
Unrecognized
Expense
|
|
Average Expected Recognition Period - in Years
|
||
Stock options
|
|
$
|
14,341
|
|
|
2.51
|
Restricted stock units
|
|
30,706
|
|
|
2.42
|
|
Total unrecognized share-based compensation expense
|
|
$
|
45,047
|
|
|
|
Equity incentive plan awards
|
|
2014
|
|
2013
|
|
2012
|
||||||
Weighted average expected term of options in years
|
|
4.6
|
|
|
4.7
|
|
|
4.6
|
|
|||
Weighted average expected volatility of the Company's underlying common stock
|
|
35.9
|
%
|
|
44.6
|
%
|
|
50.4
|
%
|
|||
Risk-free interest rate
|
|
1.72
|
|
|
0.70
|
|
|
0.83
|
|
|||
Expected dividend yield
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Weighted average grant date fair value-stock options
|
|
$
|
35.65
|
|
|
$
|
27.28
|
|
|
$
|
27.00
|
|
Weighted average grant date fair value-restricted stock units
|
|
107.76
|
|
|
71.57
|
|
|
63.07
|
|
ESPP
|
|
2014
|
|
2013
|
|
2012
|
||||||
Expected term in years
|
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|||
Weighted average expected volatility of the Company's underlying common stock
|
|
23.7
|
%
|
|
22.3
|
%
|
|
43.5
|
%
|
|||
Risk-free interest rate
|
|
0.08
|
|
|
0.11
|
|
|
0.11
|
|
|||
Expected dividend yield
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Weighted average fair value
|
|
$
|
24.00
|
|
|
$
|
15.35
|
|
|
$
|
14.43
|
|
|
|
Options
|
|
Weighted
Average
Exercise Price
|
|
Weighted Average Remaining Contractual Life in Years
|
|
Aggregate Intrinsic Value of
In-The-Money Options
|
|||||
Outstanding at December 31, 2013
|
|
1,514,159
|
|
|
$
|
55.27
|
|
|
|
|
|
||
Granted
|
|
249,303
|
|
|
108.05
|
|
|
|
|
|
|||
Exercised
|
|
(330,898
|
)
|
|
47.70
|
|
|
|
|
|
|||
Forfeited
|
|
(37,676
|
)
|
|
72.45
|
|
|
|
|
|
|||
Outstanding at December 31, 2014
|
|
1,394,888
|
|
|
66.03
|
|
|
4.09
|
|
$
|
69,834,175
|
|
|
Vested and expected to vest at December 31, 2014
|
|
1,352,289
|
|
|
65.35
|
|
|
4.04
|
|
68,622,901
|
|
||
Exercisable at December 31, 2014
|
|
687,696
|
|
|
50.60
|
|
|
2.89
|
|
45,022,407
|
|
|
|
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
|
||||||
$19.48-45.15
|
|
139,582
|
|
|
1.55
|
|
$
|
23.86
|
|
|
137,576
|
|
|
$
|
23.63
|
|
45.16-49.01
|
|
101,374
|
|
|
1.64
|
|
46.98
|
|
|
99,564
|
|
|
46.98
|
|
||
49.02-60.14
|
|
162,117
|
|
|
2.66
|
|
50.89
|
|
|
145,697
|
|
|
50.24
|
|
||
60.15-60.51
|
|
191,999
|
|
|
3.32
|
|
60.37
|
|
|
127,497
|
|
|
60.37
|
|
||
60.52-64.40
|
|
269,220
|
|
|
4.33
|
|
64.31
|
|
|
114,437
|
|
|
64.30
|
|
||
64.41-67.77
|
|
2,842
|
|
|
4.25
|
|
64.43
|
|
|
884
|
|
|
64.43
|
|
||
67.78-73.76
|
|
274,906
|
|
|
5.33
|
|
71.11
|
|
|
60,161
|
|
|
71.11
|
|
||
73.77-107.93
|
|
31,639
|
|
|
6.31
|
|
99.24
|
|
|
1,880
|
|
|
85.15
|
|
||
107.94-122.55
|
|
221,209
|
|
|
6.36
|
|
108.43
|
|
|
—
|
|
|
—
|
|
||
|
|
1,394,888
|
|
|
4.09
|
|
66.03
|
|
|
687,696
|
|
|
50.60
|
|
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested at December 31, 2013
|
|
682,347
|
|
|
$
|
65.93
|
|
Granted
|
|
201,464
|
|
|
107.76
|
|
|
Vested
|
|
(233,759
|
)
|
|
63.89
|
|
|
Forfeited
|
|
(35,386
|
)
|
|
74.39
|
|
|
Nonvested at December 31, 2014
|
|
614,666
|
|
|
79.92
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Total intrinsic value of stock options exercised
|
|
$
|
21,288
|
|
|
$
|
25,520
|
|
|
$
|
17,419
|
|
Total grant date fair value of stock options vested
|
|
20,291
|
|
|
18,168
|
|
|
17,169
|
|
|||
Total intrinsic value of restricted stock vested
|
|
25,453
|
|
|
14,176
|
|
|
12,747
|
|
|||
Total grant date fair value of restricted stock vested
|
|
14,935
|
|
|
10,940
|
|
|
10,176
|
|
5.
|
Reserves on Deposit with the Federal Reserve Bank and Federal Bank Stock
|
|
|
Year ended December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Average required reserve balances at FRB San Francisco
|
|
$
|
168,387
|
|
|
$
|
131,374
|
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
FHLB stock holdings
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
FRB stock holdings
|
|
28,496
|
|
|
15,632
|
|
6.
|
Cash and Cash Equivalents
|
(Dollars in thousands)
|
|
December 31, 2014
|
|
December 31, 2013
|
||||
Cash and due from banks (1)
|
|
$
|
1,694,329
|
|
|
$
|
1,349,688
|
|
Securities purchased under agreements to resell (2)
|
|
95,611
|
|
|
172,989
|
|
||
Other short-term investment securities
|
|
6,122
|
|
|
16,102
|
|
||
Total cash and cash equivalents
|
|
$
|
1,796,062
|
|
|
$
|
1,538,779
|
|
|
(1)
|
At
December 31, 2014
and
2013
,
$861 million
and
$715 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
$440 million
and
$300 million
, respectively.
|
(2)
|
At
December 31, 2014
and
2013
, securities purchased under agreements to resell were collateralized by U.S. Treasury securities and U.S. agency securities with aggregate fair values of
$98 million
and
$176 million
, respectively. None of these securities were sold or repledged as of
December 31, 2014
and
2013
.
|
|
|
Year Ended December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Average securities purchased under agreements to resell
|
|
$
|
108,910
|
|
|
$
|
96,309
|
|
Maximum amount outstanding at any month-end during the year
|
|
283,215
|
|
|
338,687
|
|
7.
|
Investment Securities
|
|
|
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
|
|
|
|
December 31, 2013
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Carrying
Value
|
||||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency debentures
|
|
$
|
4,344,652
|
|
|
$
|
41,365
|
|
|
$
|
(40,785
|
)
|
|
$
|
4,345,232
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
2,472,528
|
|
|
17,189
|
|
|
(16,141
|
)
|
|
2,473,576
|
|
||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
3,386,670
|
|
|
24,510
|
|
|
(85,422
|
)
|
|
3,325,758
|
|
||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
1,183,333
|
|
|
3,363
|
|
|
(123
|
)
|
|
1,186,573
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
581,475
|
|
|
552
|
|
|
(17,423
|
)
|
|
564,604
|
|
||||
Municipal bonds and notes
|
|
82,024
|
|
|
4,024
|
|
|
(21
|
)
|
|
86,027
|
|
||||
Equity securities
|
|
4,842
|
|
|
692
|
|
|
(483
|
)
|
|
5,051
|
|
||||
Total available-for-sale securities
|
|
$
|
12,055,524
|
|
|
$
|
91,695
|
|
|
$
|
(160,398
|
)
|
|
$
|
11,986,821
|
|
|
|
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. As of
December 31, 2014
, 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, 2014
, 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 available-for-sale securities portfolio are reviewed and monitored on a quarterly basis.
|
|
|
December 31, 2013
|
||||||||||||||||||||||
|
|
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. agency debentures
|
|
$
|
1,821,045
|
|
|
$
|
(40,785
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,821,045
|
|
|
$
|
(40,785
|
)
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency-issued mortgage-backed securities
|
|
1,480,870
|
|
|
(14,029
|
)
|
|
19,830
|
|
|
(2,112
|
)
|
|
1,500,700
|
|
|
(16,141
|
)
|
||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
2,098,137
|
|
|
(79,519
|
)
|
|
134,420
|
|
|
(5,903
|
)
|
|
2,232,557
|
|
|
(85,422
|
)
|
||||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
109,699
|
|
|
(123
|
)
|
|
—
|
|
|
—
|
|
|
109,699
|
|
|
(123
|
)
|
||||||
Agency-issued commercial mortgage-backed securities
|
|
464,171
|
|
|
(17,423
|
)
|
|
—
|
|
|
—
|
|
|
464,171
|
|
|
(17,423
|
)
|
||||||
Municipal bonds and notes
|
|
3,404
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
3,404
|
|
|
(21
|
)
|
||||||
Equity securities
|
|
910
|
|
|
(483
|
)
|
|
—
|
|
|
—
|
|
|
910
|
|
|
(483
|
)
|
||||||
Total temporarily impaired securities
|
|
$
|
5,978,236
|
|
|
$
|
(152,383
|
)
|
|
$
|
154,250
|
|
|
$
|
(8,015
|
)
|
|
$
|
6,132,486
|
|
|
$
|
(160,398
|
)
|
|
|
December 31, 2014
|
|||||||||||||||||||||||||||||||||
|
|
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
|
|
$
|
7,302,273
|
|
|
1.08
|
%
|
|
$
|
200,098
|
|
|
0.20
|
%
|
|
$
|
6,406,273
|
|
|
1.02
|
%
|
|
$
|
695,902
|
|
|
1.99
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. agency debentures
|
|
3,561,556
|
|
|
1.64
|
|
|
869,463
|
|
|
1.78
|
|
|
2,276,819
|
|
|
1.46
|
|
|
415,274
|
|
|
2.36
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
1,884,843
|
|
|
2.00
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
527,216
|
|
|
2.57
|
|
|
1,357,627
|
|
|
1.79
|
|
|||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
784,475
|
|
|
0.71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
784,475
|
|
|
0.71
|
|
|||||
Total
|
|
$
|
13,533,147
|
|
|
1.34
|
|
|
$
|
1,069,561
|
|
|
1.48
|
|
|
$
|
8,683,092
|
|
|
1.13
|
|
|
$
|
1,638,392
|
|
|
2.27
|
|
|
$
|
2,142,102
|
|
|
1.39
|
|
|
|
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.
|
|
|
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. As of
December 31, 2014
, 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, 2014
, we deem all impairments to be temporary. Market valuations and impairment analyses on assets in the held-to-maturity securities portfolio are reviewed and monitored on a quarterly basis.
|
|
|
December 31, 2014
|
|||||||||||||||||||||||||||||||||
|
|
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
|
|
$
|
405,899
|
|
|
2.87
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
405,899
|
|
|
2.87
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency-issued mortgage-backed securities
|
|
2,799,923
|
|
|
2.42
|
|
|
—
|
|
|
—
|
|
|
43,809
|
|
|
2.39
|
|
|
853,331
|
|
|
2.21
|
|
|
1,902,783
|
|
|
2.51
|
|
|||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
3,185,109
|
|
|
1.68
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,185,109
|
|
|
1.68
|
|
|||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
131,580
|
|
|
0.65
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
131,580
|
|
|
0.65
|
|
|||||
Agency-issued commercial mortgage-backed securities
|
|
814,589
|
|
|
2.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
814,589
|
|
|
2.15
|
|
|||||
Municipal bonds and notes
|
|
83,942
|
|
|
6.00
|
|
|
3,442
|
|
|
5.37
|
|
|
30,985
|
|
|
5.86
|
|
|
39,904
|
|
|
6.10
|
|
|
9,611
|
|
|
6.27
|
|
|||||
Total
|
|
$
|
7,421,042
|
|
|
2.10
|
|
|
$
|
3,442
|
|
|
5.37
|
|
|
$
|
74,794
|
|
|
3.83
|
|
|
$
|
1,299,134
|
|
|
2.54
|
|
|
$
|
6,043,672
|
|
|
1.99
|
|
(Dollars in thousands)
|
|
December 31, 2014
|
|
December 31, 2013
|
||||
Non-marketable and other securities:
|
|
|
|
|
||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments (1)
|
|
$
|
1,130,882
|
|
|
$
|
862,972
|
|
Other venture capital investments (2)
|
|
71,204
|
|
|
32,839
|
|
||
Other securities (fair value accounting) (3)
|
|
108,251
|
|
|
321,374
|
|
||
Non-marketable securities (equity method accounting):
|
|
|
|
|
||||
Other investments (4)
|
|
142,674
|
|
|
142,883
|
|
||
Low income housing tax credit funds
|
|
118,650
|
|
|
72,241
|
|
||
Non-marketable securities (cost method accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments (5)
|
|
140,551
|
|
|
148,994
|
|
||
Other investments
|
|
16,676
|
|
|
14,191
|
|
||
Total non-marketable and other securities
|
|
$
|
1,728,888
|
|
|
$
|
1,595,494
|
|
|
(1)
|
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, 2014
and
December 31, 2013
(fair value accounting):
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
SVB Strategic Investors Fund, LP
|
|
$
|
24,645
|
|
|
12.6
|
%
|
|
$
|
29,104
|
|
|
12.6
|
%
|
SVB Strategic Investors Fund II, LP
|
|
97,250
|
|
|
8.6
|
|
|
96,185
|
|
|
8.6
|
|
||
SVB Strategic Investors Fund III, LP
|
|
269,821
|
|
|
5.9
|
|
|
260,272
|
|
|
5.9
|
|
||
SVB Strategic Investors Fund IV, LP
|
|
291,291
|
|
|
5.0
|
|
|
226,729
|
|
|
5.0
|
|
||
Strategic Investors Fund V Funds
|
|
226,111
|
|
|
Various
|
|
|
118,181
|
|
|
Various
|
|
||
Strategic Investors Fund VI Funds
|
|
89,605
|
|
|
—
|
|
|
7,944
|
|
|
0.2
|
|
||
SVB Capital Preferred Return Fund, LP
|
|
62,110
|
|
|
20.0
|
|
|
59,028
|
|
|
20.0
|
|
||
SVB Capital—NT Growth Partners, LP
|
|
61,973
|
|
|
33.0
|
|
|
61,126
|
|
|
33.0
|
|
||
SVB Capital Partners II, LP (i)
|
|
302
|
|
|
5.1
|
|
|
708
|
|
|
5.1
|
|
||
Other private equity fund (ii)
|
|
7,774
|
|
|
58.2
|
|
|
3,695
|
|
|
58.2
|
|
||
Total venture capital and private equity fund investments
|
|
$
|
1,130,882
|
|
|
|
|
$
|
862,972
|
|
|
|
|
(i)
|
At
December 31, 2014
, we had a direct ownership interest of
1.3 percent
and an indirect ownership interest of
3.8 percent
in the fund through our ownership interest of SVB Strategic Investors Fund II, LP.
|
(ii)
|
At
December 31, 2014
, we had a direct ownership interest 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.
|
(2)
|
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, 2014
and
December 31, 2013
(fair value accounting):
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
Silicon Valley BancVentures, LP
|
|
$
|
3,291
|
|
|
10.7
|
%
|
|
$
|
6,564
|
|
|
10.7
|
%
|
SVB Capital Partners II, LP (i)
|
|
20,481
|
|
|
5.1
|
|
|
22,684
|
|
|
5.1
|
|
||
Capital Partners III, LP
|
|
41,055
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
SVB Capital Shanghai Yangpu Venture Capital Fund
|
|
6,377
|
|
|
6.8
|
|
|
3,591
|
|
|
6.8
|
|
||
Total other venture capital investments
|
|
$
|
71,204
|
|
|
|
|
$
|
32,839
|
|
|
|
|
(i)
|
At
December 31, 2014
, we had a direct ownership interest of
1.3 percent
and an indirect ownership interest of
3.8 percent
in the fund through our ownership of SVB Strategic Investors Fund II, LP.
|
(3)
|
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 total unrealized gains of
$75 million
in one public company, FireEye.
The extent to which any unrealized gains (or losses) will become realized is subject to a variety of factors, including, among other things, changes in prevailing market prices and the timing of any sales or distribution of securities and may also be constrained by lock-up agreements. None of the FireEye related investments currently are subject to a lock-up agreement.
|
(4)
|
The following table shows the carrying value and our ownership percentage of each investment at
December 31, 2014
and
December 31, 2013
(equity method accounting):
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
Gold Hill Capital 2008, LP (i)
|
|
$
|
21,294
|
|
|
15.5
|
%
|
|
$
|
21,867
|
|
|
15.5
|
%
|
China Joint Venture investment
|
|
79,569
|
|
|
50.0
|
|
|
79,940
|
|
|
50.0
|
|
||
Other investments
|
|
41,811
|
|
|
Various
|
|
|
41,076
|
|
|
Various
|
|
||
Total other investments (equity method accounting)
|
|
$
|
142,674
|
|
|
|
|
$
|
142,883
|
|
|
|
|
(i)
|
At
December 31, 2014
, 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
.
|
(5)
|
Represents investments in
281
and
288
funds (primarily venture capital funds) at
December 31, 2014
and
December 31, 2013
, 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
$141 million
, and
$234 million
, respectively, as of December 31, 2014. The carrying value, and estimated fair value, of the venture capital and private equity fund investments (cost method accounting) was
$149 million
, and
$215 million
, respectively, as of December 31, 2013.
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Gross gains on investment securities:
|
|
|
|
|
|
|
||||||
Available-for-sale securities, at fair value (1)
|
|
$
|
658
|
|
|
$
|
3,887
|
|
|
$
|
6,380
|
|
Marketable securities (fair value accounting)
|
|
—
|
|
|
—
|
|
|
8,863
|
|
|||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments
|
|
349,747
|
|
|
186,404
|
|
|
107,507
|
|
|||
Other venture capital investments
|
|
17,309
|
|
|
9,241
|
|
|
58,409
|
|
|||
Other investments
|
|
—
|
|
|
—
|
|
|
21
|
|
|||
Other securities (fair value accounting)
|
|
151,007
|
|
|
227,252
|
|
|
—
|
|
|||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
||||||
Other investments
|
|
10,937
|
|
|
18,235
|
|
|
16,923
|
|
|||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments
|
|
16,001
|
|
|
10,081
|
|
|
3,503
|
|
|||
Other investments
|
|
5,794
|
|
|
431
|
|
|
1,715
|
|
|||
Total gross gains on investment securities
|
|
551,453
|
|
|
455,531
|
|
|
203,321
|
|
|||
Gross losses on investment securities:
|
|
|
|
|
|
|
||||||
Available-for-sale securities, at fair value (1)
|
|
(19,255
|
)
|
|
(3,349
|
)
|
|
(2,139
|
)
|
|||
Marketable securities (fair value accounting)
|
|
—
|
|
|
—
|
|
|
(1,675
|
)
|
|||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments
|
|
(86,263
|
)
|
|
(17,185
|
)
|
|
(63,146
|
)
|
|||
Other venture capital investments
|
|
(4,516
|
)
|
|
(3,496
|
)
|
|
(11,062
|
)
|
|||
Other securities (fair value accounting)
|
|
(170,890
|
)
|
|
(2,962
|
)
|
|
—
|
|
|||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
||||||
Other investments
|
|
(2,320
|
)
|
|
(3,111
|
)
|
|
(1,987
|
)
|
|||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (2)
|
|
(827
|
)
|
|
(1,700
|
)
|
|
(1,079
|
)
|
|||
Other investments (3)
|
|
(359
|
)
|
|
(4,320
|
)
|
|
(119
|
)
|
|||
Total gross losses on investment securities
|
|
(284,430
|
)
|
|
(36,123
|
)
|
|
(81,207
|
)
|
|||
Gains on investment securities, net
|
|
$
|
267,023
|
|
|
$
|
419,408
|
|
|
$
|
122,114
|
|
|
(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
$0.8 million
from the declines in value for
27
of the
281
investments,
$1.4 million
from the declines in value for
43
of the
288
investments, and
$1.0 million
from the declines in value for
46
of the
324
investments held at December 31, 2014, 2013, and 2012, 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 year ended
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 and there was
no
recognized OTTI for the year ended December 31, 2012.
|
8.
|
Loans and Allowance for Loan Losses
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Commercial loans:
|
|
|
|
|
||||
Software and internet
|
|
$
|
4,954,676
|
|
|
$
|
4,102,636
|
|
Hardware
|
|
1,131,006
|
|
|
1,213,032
|
|
||
Private equity/venture capital
|
|
4,582,906
|
|
|
2,386,054
|
|
||
Life science & healthcare
|
|
1,289,904
|
|
|
1,170,220
|
|
||
Premium wine
|
|
187,568
|
|
|
149,841
|
|
||
Other
|
|
234,551
|
|
|
288,904
|
|
||
Total commercial loans
|
|
12,380,611
|
|
|
9,310,687
|
|
||
Real estate secured loans:
|
|
|
|
|
||||
Premium wine (1)
|
|
606,753
|
|
|
514,993
|
|
||
Consumer loans (2)
|
|
1,118,115
|
|
|
873,255
|
|
||
Other
|
|
39,651
|
|
|
30,743
|
|
||
Total real estate secured loans
|
|
1,764,519
|
|
|
1,418,991
|
|
||
Construction loans
|
|
78,626
|
|
|
76,997
|
|
||
Consumer loans
|
|
160,520
|
|
|
99,711
|
|
||
Total loans, net of unearned income (3)
|
|
$
|
14,384,276
|
|
|
$
|
10,906,386
|
|
|
(1)
|
Included in our premium wine portfolio are gross construction loans of
$112 million
at both
December 31, 2014
and
2013
.
|
(2)
|
Consumer loans secured by real estate at
December 31, 2014
and
2013
were comprised of the following:
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Loans for personal residence
|
|
$
|
918,629
|
|
|
$
|
685,327
|
|
Loans to eligible employees
|
|
133,568
|
|
|
121,548
|
|
||
Home equity lines of credit
|
|
65,918
|
|
|
66,380
|
|
||
Consumer loans secured by real estate
|
|
$
|
1,118,115
|
|
|
$
|
873,255
|
|
(3)
|
Included within our total loan portfolio are credit card loans of
$131 million
and
$85 million
at
December 31, 2014
and
2013
, respectively.
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Commercial loans:
|
|
|
|
|
||||
Software and internet
|
|
$
|
4,954,676
|
|
|
$
|
4,102,636
|
|
Hardware
|
|
1,131,006
|
|
|
1,213,032
|
|
||
Private equity/venture capital
|
|
4,582,906
|
|
|
2,386,054
|
|
||
Life science & healthcare
|
|
1,289,904
|
|
|
1,170,220
|
|
||
Premium wine
|
|
794,321
|
|
|
664,834
|
|
||
Other
|
|
352,828
|
|
|
396,644
|
|
||
Total commercial loans
|
|
13,105,641
|
|
|
9,933,420
|
|
||
Consumer loans:
|
|
|
|
|
||||
Real estate secured loans
|
|
1,118,115
|
|
|
873,255
|
|
||
Other consumer loans
|
|
160,520
|
|
|
99,711
|
|
||
Total consumer loans
|
|
1,278,635
|
|
|
972,966
|
|
||
Total loans, net of unearned income
|
|
$
|
14,384,276
|
|
|
$
|
10,906,386
|
|
(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, 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
|
|
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
9,804
|
|
|
$
|
1,291
|
|
|
$
|
99
|
|
|
$
|
11,194
|
|
|
$
|
4,102,546
|
|
|
$
|
99
|
|
Hardware
|
|
2,679
|
|
|
3,965
|
|
|
—
|
|
|
6,644
|
|
|
1,198,169
|
|
|
—
|
|
||||||
Private equity/venture capital
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
2,408,382
|
|
|
—
|
|
||||||
Life science & healthcare
|
|
395
|
|
|
131
|
|
|
—
|
|
|
526
|
|
|
1,179,462
|
|
|
—
|
|
||||||
Premium wine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
665,755
|
|
|
—
|
|
||||||
Other
|
|
1,580
|
|
|
142
|
|
|
—
|
|
|
1,722
|
|
|
397,416
|
|
|
—
|
|
||||||
Total commercial loans
|
|
14,462
|
|
|
5,529
|
|
|
99
|
|
|
20,090
|
|
|
9,951,730
|
|
|
99
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate secured loans
|
|
240
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|
872,586
|
|
|
—
|
|
||||||
Other consumer loans
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
98,965
|
|
|
—
|
|
||||||
Total consumer loans
|
|
248
|
|
|
—
|
|
|
—
|
|
|
248
|
|
|
971,551
|
|
|
—
|
|
||||||
Total gross loans excluding impaired loans
|
|
14,710
|
|
|
5,529
|
|
|
99
|
|
|
20,338
|
|
|
10,923,281
|
|
|
99
|
|
||||||
Impaired loans
|
|
4,657
|
|
|
7,043
|
|
|
4,339
|
|
|
16,039
|
|
|
35,610
|
|
|
—
|
|
||||||
Total gross loans
|
|
$
|
19,367
|
|
|
$
|
12,572
|
|
|
$
|
4,438
|
|
|
$
|
36,377
|
|
|
$
|
10,958,891
|
|
|
$
|
99
|
|
(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, 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
|
|
December 31, 2013:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
27,308
|
|
|
$
|
310
|
|
|
$
|
27,618
|
|
|
$
|
28,316
|
|
Hardware
|
|
19,329
|
|
|
338
|
|
|
19,667
|
|
|
35,317
|
|
||||
Private equity/venture capital
|
|
40
|
|
|
—
|
|
|
40
|
|
|
40
|
|
||||
Life science & healthcare
|
|
—
|
|
|
1,278
|
|
|
1,278
|
|
|
4,727
|
|
||||
Premium wine
|
|
—
|
|
|
1,442
|
|
|
1,442
|
|
|
1,778
|
|
||||
Other
|
|
690
|
|
|
—
|
|
|
690
|
|
|
718
|
|
||||
Total commercial loans
|
|
47,367
|
|
|
3,368
|
|
|
50,735
|
|
|
70,896
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
—
|
|
|
244
|
|
|
244
|
|
|
1,434
|
|
||||
Other consumer loans
|
|
670
|
|
|
—
|
|
|
670
|
|
|
941
|
|
||||
Total consumer loans
|
|
670
|
|
|
244
|
|
|
914
|
|
|
2,375
|
|
||||
Total
|
|
$
|
48,037
|
|
|
$
|
3,612
|
|
|
$
|
51,649
|
|
|
$
|
73,271
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Average impaired loans:
|
|
|
|
|
|
|
||||||
Commercial loans:
|
|
|
|
|
|
|
||||||
Software and internet
|
|
$
|
14,357
|
|
|
$
|
6,254
|
|
|
$
|
2,223
|
|
Hardware
|
|
6,634
|
|
|
24,508
|
|
|
19,242
|
|
|||
Private equity/venture capital
|
|
—
|
|
|
37
|
|
|
—
|
|
|||
Life science & healthcare
|
|
516
|
|
|
334
|
|
|
345
|
|
|||
Premium wine
|
|
1,381
|
|
|
2,210
|
|
|
3,513
|
|
|||
Other
|
|
1,088
|
|
|
3,601
|
|
|
3,558
|
|
|||
Total commercial loans
|
|
23,976
|
|
|
36,944
|
|
|
28,881
|
|
|||
Consumer loans:
|
|
|
|
|
|
|
||||||
Real estate secured loans
|
|
218
|
|
|
2,957
|
|
|
5,037
|
|
|||
Other consumer loans
|
|
322
|
|
|
945
|
|
|
1,896
|
|
|||
Total consumer loans
|
|
540
|
|
|
3,902
|
|
|
6,933
|
|
|||
Total average impaired loans
|
|
$
|
24,516
|
|
|
$
|
40,846
|
|
|
$
|
35,814
|
|
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)
|
|
|
|
|
|
|||||||||||||||
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)
|
|
|
|
|
|
|||||||||||||||
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
|
|
Year ended December 31, 2012
|
|
Beginning Balance December 31, 2011
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for (Reduction of) Loan Losses
|
|
Ending Balance December 31, 2012
|
||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|||||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software and internet
|
|
$
|
38,263
|
|
|
$
|
(4,316
|
)
|
|
$
|
4,874
|
|
|
$
|
3,827
|
|
|
$
|
42,648
|
|
Hardware
|
|
16,810
|
|
|
(20,247
|
)
|
|
1,107
|
|
|
32,091
|
|
|
29,761
|
|
|||||
Private equity/venture capital
|
|
7,319
|
|
|
—
|
|
|
—
|
|
|
2,644
|
|
|
9,963
|
|
|||||
Life science & healthcare
|
|
10,243
|
|
|
(5,080
|
)
|
|
334
|
|
|
8,109
|
|
|
13,606
|
|
|||||
Premium wine
|
|
3,914
|
|
|
(584
|
)
|
|
650
|
|
|
(457
|
)
|
|
3,523
|
|
|||||
Other
|
|
5,817
|
|
|
(2,485
|
)
|
|
1,377
|
|
|
(797
|
)
|
|
3,912
|
|
|||||
Total commercial loans
|
|
82,366
|
|
|
(32,712
|
)
|
|
8,342
|
|
|
45,417
|
|
|
103,413
|
|
|||||
Consumer loans
|
|
7,581
|
|
|
(607
|
)
|
|
1,351
|
|
|
(1,087
|
)
|
|
7,238
|
|
|||||
Total allowance for loan losses
|
|
$
|
89,947
|
|
|
$
|
(33,319
|
)
|
|
$
|
9,693
|
|
|
$
|
44,330
|
|
|
$
|
110,651
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
|
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
|
|
$
|
13,695
|
|
|
$
|
33,287
|
|
|
$
|
67,286
|
|
|
$
|
4,921,389
|
|
|
$
|
11,261
|
|
|
$
|
27,617
|
|
|
$
|
52,823
|
|
|
$
|
4,075,019
|
|
Hardware
|
|
1,133
|
|
|
2,521
|
|
|
24,727
|
|
|
1,128,485
|
|
|
9,673
|
|
|
19,667
|
|
|
26,880
|
|
|
1,193,365
|
|
||||||||
Private equity/venture capital
|
|
—
|
|
|
—
|
|
|
27,997
|
|
|
4,582,906
|
|
|
19
|
|
|
39
|
|
|
16,366
|
|
|
2,386,015
|
|
||||||||
Life science & healthcare
|
|
121
|
|
|
475
|
|
|
15,087
|
|
|
1,289,429
|
|
|
—
|
|
|
1,278
|
|
|
11,926
|
|
|
1,168,942
|
|
||||||||
Premium wine
|
|
—
|
|
|
1,304
|
|
|
4,473
|
|
|
793,017
|
|
|
—
|
|
|
1,442
|
|
|
3,914
|
|
|
663,392
|
|
||||||||
Other
|
|
71
|
|
|
233
|
|
|
3,182
|
|
|
352,595
|
|
|
156
|
|
|
690
|
|
|
3,524
|
|
|
395,954
|
|
||||||||
Total commercial loans
|
|
15,020
|
|
|
37,820
|
|
|
142,752
|
|
|
13,067,821
|
|
|
21,109
|
|
|
50,733
|
|
|
115,433
|
|
|
9,882,687
|
|
||||||||
Consumer loans
|
|
31
|
|
|
317
|
|
|
7,556
|
|
|
1,278,318
|
|
|
168
|
|
|
915
|
|
|
6,176
|
|
|
972,051
|
|
||||||||
Total
|
|
$
|
15,051
|
|
|
$
|
38,137
|
|
|
$
|
150,308
|
|
|
$
|
14,346,139
|
|
|
$
|
21,277
|
|
|
$
|
51,648
|
|
|
$
|
121,609
|
|
|
$
|
10,854,738
|
|
(Dollars in thousands)
|
|
Pass
|
|
Performing
(Criticized)
|
|
Impaired
|
|
Total
|
||||||||
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
|
|
December 31, 2013:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
3,875,043
|
|
|
$
|
238,697
|
|
|
$
|
27,618
|
|
|
$
|
4,141,358
|
|
Hardware
|
|
995,055
|
|
|
209,758
|
|
|
19,667
|
|
|
1,224,480
|
|
||||
Private equity/venture capital
|
|
2,408,386
|
|
|
—
|
|
|
40
|
|
|
2,408,426
|
|
||||
Life science & healthcare
|
|
1,091,993
|
|
|
87,995
|
|
|
1,278
|
|
|
1,181,266
|
|
||||
Premium wine
|
|
652,747
|
|
|
13,008
|
|
|
1,442
|
|
|
667,197
|
|
||||
Other
|
|
383,602
|
|
|
15,536
|
|
|
690
|
|
|
399,828
|
|
||||
Total commercial loans
|
|
9,406,826
|
|
|
564,994
|
|
|
50,735
|
|
|
10,022,555
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
868,789
|
|
|
4,037
|
|
|
244
|
|
|
873,070
|
|
||||
Other consumer loans
|
|
95,586
|
|
|
3,387
|
|
|
670
|
|
|
99,643
|
|
||||
Total consumer loans
|
|
964,375
|
|
|
7,424
|
|
|
914
|
|
|
972,713
|
|
||||
Total gross loans
|
|
$
|
10,371,201
|
|
|
$
|
572,418
|
|
|
$
|
51,649
|
|
|
$
|
10,995,268
|
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Loans modified in TDRs:
|
|
|
|
|
||||
Commercial loans:
|
|
|
|
|
||||
Software and internet
|
|
$
|
3,784
|
|
|
$
|
5,860
|
|
Hardware
|
|
1,118
|
|
|
13,329
|
|
||
Private equity/venture capital
|
|
—
|
|
|
77
|
|
||
Premium wine
|
|
1,891
|
|
|
1,442
|
|
||
Other
|
|
233
|
|
|
1,055
|
|
||
Total commercial loans
|
|
7,026
|
|
|
21,763
|
|
||
Consumer loans:
|
|
|
|
|
||||
Other consumer loans
|
|
125
|
|
|
670
|
|
||
Total consumer loans
|
|
125
|
|
|
670
|
|
||
Total
|
|
$
|
7,151
|
|
|
$
|
22,433
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Loans modified in TDRs during the period:
|
|
|
|
|
|
|
||||||
Commercial loans:
|
|
|
|
|
|
|
||||||
Software and internet
|
|
$
|
1,033
|
|
|
$
|
4,932
|
|
|
$
|
1,939
|
|
Hardware
|
|
1,118
|
|
|
8,143
|
|
|
20,514
|
|
|||
Private equity/venture capital
|
|
—
|
|
|
77
|
|
|
—
|
|
|||
Premium wine
|
|
587
|
|
|
—
|
|
|
1,024
|
|
|||
Other
|
|
—
|
|
|
690
|
|
|
4,878
|
|
|||
Total commercial loans
|
|
2,738
|
|
|
13,842
|
|
|
28,355
|
|
|||
Consumer loans:
|
|
|
|
|
|
|
||||||
Real estate secured loans
|
|
—
|
|
|
—
|
|
|
368
|
|
|||
Other consumer loans
|
|
—
|
|
|
6
|
|
|
—
|
|
|||
Total consumer loans
|
|
—
|
|
|
6
|
|
|
368
|
|
|||
Total loans modified in TDRs during the period (1)
|
|
$
|
2,738
|
|
|
$
|
13,848
|
|
|
$
|
28,723
|
|
|
(1)
|
During
2014
we had
no
partial charge-offs. In
2013
and 2012 we had partial charge-offs of
$11.1 million
and
$14.3 million
respectively, on loans classified as TDRs.
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2013
|
|
2012
|
||||
TDRs modified within the previous 12 months that defaulted during the period:
|
|
|
|
|
||||
Commercial loans:
|
|
|
|
|
||||
Hardware
|
|
$
|
1,627
|
|
|
$
|
1,868
|
|
Private equity/venture capital
|
|
38
|
|
|
—
|
|
||
Other
|
|
365
|
|
|
—
|
|
||
Total commercial loans
|
|
2,030
|
|
|
1,868
|
|
||
Consumer loans:
|
|
|
|
|
||||
Real estate secured loans
|
|
—
|
|
|
120
|
|
||
Other consumer loans
|
|
6
|
|
|
—
|
|
||
Total consumer loans
|
|
6
|
|
|
120
|
|
||
Total TDRs modified within the previous 12 months that defaulted in the period
|
|
$
|
2,036
|
|
|
$
|
1,988
|
|
9.
|
Premises and Equipment
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Computer software
|
|
$
|
149,579
|
|
|
$
|
128,129
|
|
Computer hardware
|
|
52,203
|
|
|
45,241
|
|
||
Leasehold improvements
|
|
48,780
|
|
|
40,851
|
|
||
Furniture and equipment
|
|
24,320
|
|
|
19,434
|
|
||
Total
|
|
274,882
|
|
|
233,655
|
|
||
Accumulated depreciation and amortization
|
|
(195,037
|
)
|
|
(166,170
|
)
|
||
Premises and equipment, net
|
|
$
|
79,845
|
|
|
$
|
67,485
|
|
10.
|
Disposal - Assets Held-for-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 21—”Segment Reporting” of the “Notes to Consolidated Financial Statements” under Part II, Item 8 of this report.
|
(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 21—”Segment Reporting” of the “Notes to Consolidated Financial Statements” under Part II, Item 8 of this report.
|
11.
|
Deposits
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Noninterest-bearing demand
|
|
$
|
24,583,682
|
|
|
$
|
15,894,360
|
|
Negotiable order of withdrawal (NOW)
|
|
254,462
|
|
|
151,746
|
|
||
Money market
|
|
6,186,044
|
|
|
4,373,974
|
|
||
Money market deposits in foreign offices
|
|
242,526
|
|
|
181,299
|
|
||
Sweep deposits in foreign offices
|
|
2,948,658
|
|
|
1,657,740
|
|
||
Time
|
|
128,127
|
|
|
213,860
|
|
||
Total deposits
|
|
$
|
34,343,499
|
|
|
$
|
22,472,979
|
|
12.
|
Short-Term Borrowings and Long-Term Debt
|
|
|
|
|
|
|
Carrying Value
|
||||||||
(Dollars in thousands)
|
|
Maturity
|
|
Principal value at December 31, 2014
|
|
December 31,
2014 |
|
December 31,
2013 |
||||||
Short-term borrowings:
|
|
|
|
|
|
|
|
|
||||||
Other short-term borrowings
|
|
(1)
|
|
$
|
7,781
|
|
|
$
|
7,781
|
|
|
$
|
5,080
|
|
Total short-term borrowings
|
|
|
|
|
|
$
|
7,781
|
|
|
$
|
5,080
|
|
||
Long-term debt:
|
|
|
|
|
|
|
|
|
||||||
5.375% Senior Notes
|
|
September 15, 2020
|
|
$
|
350,000
|
|
|
$
|
348,436
|
|
|
$
|
348,209
|
|
6.05% Subordinated Notes (2)
|
|
June 1, 2017
|
|
45,964
|
|
|
50,162
|
|
|
51,987
|
|
|||
7.0% Junior Subordinated Debentures
|
|
October 15, 2033
|
|
50,000
|
|
|
54,845
|
|
|
55,020
|
|
|||
Total long-term debt
|
|
|
|
|
|
$
|
453,443
|
|
|
$
|
455,216
|
|
|
(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, 2014
and
2013
, included in the carrying value of our 6.05% Subordinated Notes were
$4.6 million
and
$6.5 million
, respectively, related to hedge accounting associated with the notes.
|
Year ended December 31, (dollars in thousands):
|
|
Amount
|
||
2015
|
|
$
|
—
|
|
2016
|
|
—
|
|
|
2017
|
|
50,162
|
|
|
2018
|
|
—
|
|
|
2019
|
|
—
|
|
|
2020 and thereafter
|
|
403,281
|
|
|
Total
|
|
$
|
453,443
|
|
13.
|
Derivative Financial Instruments
|
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
(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
|
|
|
$
|
4,609
|
|
|
$
|
2,970
|
|
|
$
|
1,639
|
|
|
$
|
45,964
|
|
|
$
|
6,492
|
|
|
$
|
5,080
|
|
|
$
|
1,412
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Currency exchange risks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign exchange forwards
|
|
Other assets
|
|
200,957
|
|
|
5,050
|
|
|
2,441
|
|
|
2,609
|
|
|
140,760
|
|
|
1,423
|
|
|
—
|
|
|
1,423
|
|
||||||||
Foreign exchange forwards
|
|
Other liabilities
|
|
6,226
|
|
|
(489
|
)
|
|
—
|
|
|
(489
|
)
|
|
62,649
|
|
|
(634
|
)
|
|
—
|
|
|
(634
|
)
|
||||||||
Net exposure
|
|
|
|
|
|
4,561
|
|
|
2,441
|
|
|
2,120
|
|
|
|
|
789
|
|
|
—
|
|
|
789
|
|
||||||||||
Other derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity warrant assets
|
|
Other assets
|
|
197,878
|
|
|
116,604
|
|
|
—
|
|
|
116,604
|
|
|
179,934
|
|
|
103,513
|
|
|
—
|
|
|
103,513
|
|
||||||||
Other derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Client foreign exchange forwards
|
|
Other assets
|
|
801,487
|
|
|
28,954
|
|
|
2,370
|
|
|
26,584
|
|
|
424,983
|
|
|
13,673
|
|
|
—
|
|
|
13,673
|
|
||||||||
Client foreign exchange forwards
|
|
Other liabilities
|
|
774,355
|
|
|
(27,647
|
)
|
|
—
|
|
|
(27,647
|
)
|
|
367,079
|
|
|
(11,549
|
)
|
|
—
|
|
|
(11,549
|
)
|
||||||||
Client foreign currency options
|
|
Other assets
|
|
34,926
|
|
|
227
|
|
|
—
|
|
|
227
|
|
|
91,854
|
|
|
434
|
|
|
—
|
|
|
434
|
|
||||||||
Client foreign currency options
|
|
Other liabilities
|
|
34,926
|
|
|
(227
|
)
|
|
—
|
|
|
(227
|
)
|
|
91,854
|
|
|
(434
|
)
|
|
—
|
|
|
(434
|
)
|
||||||||
Loan conversion options
|
|
Other assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,455
|
|
|
314
|
|
|
—
|
|
|
314
|
|
||||||||
Client interest rate derivatives
|
|
Other assets
|
|
387,410
|
|
|
2,546
|
|
|
—
|
|
|
2,546
|
|
|
216,773
|
|
|
1,265
|
|
|
—
|
|
|
1,265
|
|
||||||||
Client interest rate derivatives
|
|
Other liabilities
|
|
387,410
|
|
|
(2,748
|
)
|
|
—
|
|
|
(2,748
|
)
|
|
216,773
|
|
|
(1,396
|
)
|
|
—
|
|
|
(1,396
|
)
|
||||||||
Net exposure
|
|
|
|
|
|
1,105
|
|
|
2,370
|
|
|
(1,265
|
)
|
|
|
|
2,307
|
|
|
—
|
|
|
2,307
|
|
||||||||||
Net
|
|
|
|
|
|
$
|
126,879
|
|
|
$
|
7,781
|
|
|
$
|
119,098
|
|
|
|
|
$
|
113,101
|
|
|
$
|
5,080
|
|
|
$
|
108,021
|
|
|
(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, 2014 remain at investment grade or higher and there were no material changes in their credit ratings for the year ended December 31, 2014
.
|
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
Statement of income location
|
|
2014
|
|
2013
|
|
2012
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||
Interest rate risks:
|
|
|
|
|
|
|
|
|
||||||
Net cash benefit associated with interest rate swaps
|
|
Interest expense—borrowings
|
|
$
|
2,553
|
|
|
$
|
2,536
|
|
|
$
|
5,154
|
|
Changes in fair value of interest rate swaps
|
|
Net gains on derivative instruments
|
|
(50
|
)
|
|
14
|
|
|
603
|
|
|||
Net gains associated with interest rate risk derivatives
|
|
|
|
$
|
2,503
|
|
|
$
|
2,550
|
|
|
$
|
5,757
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||
Currency exchange risks:
|
|
|
|
|
|
|
|
|
||||||
(Losses) gains on revaluations of foreign currency instruments
|
|
Other noninterest income
|
|
$
|
(21,636
|
)
|
|
$
|
3,016
|
|
|
$
|
1,677
|
|
Gains (losses) on internal foreign exchange forward contracts, net
|
|
Net gains on derivative instruments
|
|
21,598
|
|
|
(4,213
|
)
|
|
(103
|
)
|
|||
Net (losses) gains associated with currency risk
|
|
|
|
$
|
(38
|
)
|
|
$
|
(1,197
|
)
|
|
$
|
1,574
|
|
Other derivative instruments:
|
|
|
|
|
|
|
|
|
||||||
Net gains on equity warrant assets
|
|
Net gains on derivative instruments
|
|
$
|
71,012
|
|
|
$
|
46,101
|
|
|
$
|
19,385
|
|
Gains (losses) on client foreign exchange forward contracts, net
|
|
Net gains on derivative instruments
|
|
$
|
5,081
|
|
|
$
|
(452
|
)
|
|
$
|
460
|
|
Net (losses) gains on other derivatives (1)
|
|
Net gains on derivative instruments
|
|
$
|
(796
|
)
|
|
$
|
734
|
|
|
$
|
(1,666
|
)
|
|
(1)
|
Primarily represents the change in fair value of loan conversion options.
|
|
|
|
|
|
|
|
|
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, 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
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
6,492
|
|
|
$
|
—
|
|
|
$
|
6,492
|
|
|
$
|
(1,412
|
)
|
|
$
|
(5,080
|
)
|
|
$
|
—
|
|
Foreign exchange forwards
|
|
15,096
|
|
|
—
|
|
|
15,096
|
|
|
(6,735
|
)
|
|
—
|
|
|
8,361
|
|
||||||
Foreign currency options
|
|
504
|
|
|
(70
|
)
|
|
434
|
|
|
(155
|
)
|
|
—
|
|
|
279
|
|
||||||
Client interest rate derivatives
|
|
1,265
|
|
|
—
|
|
|
1,265
|
|
|
(256
|
)
|
|
—
|
|
|
1,009
|
|
||||||
Total derivative assets:
|
|
23,357
|
|
|
(70
|
)
|
|
23,287
|
|
|
(8,558
|
)
|
|
(5,080
|
)
|
|
9,649
|
|
||||||
Reverse repurchase, securities borrowing, and similar arrangements
|
|
172,989
|
|
|
—
|
|
|
172,989
|
|
|
(172,989
|
)
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
196,346
|
|
|
$
|
(70
|
)
|
|
$
|
196,276
|
|
|
$
|
(181,547
|
)
|
|
$
|
(5,080
|
)
|
|
$
|
9,649
|
|
|
|
|
|
|
|
|
|
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, 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
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange forwards
|
|
$
|
12,183
|
|
|
$
|
—
|
|
|
$
|
12,183
|
|
|
$
|
(8,282
|
)
|
|
$
|
—
|
|
|
$
|
3,901
|
|
Foreign currency options
|
|
504
|
|
|
(70
|
)
|
|
434
|
|
|
(279
|
)
|
|
—
|
|
|
155
|
|
||||||
Client interest rate derivatives
|
|
1,396
|
|
|
—
|
|
|
1,396
|
|
|
(1,087
|
)
|
|
—
|
|
|
309
|
|
||||||
Total derivative assets:
|
|
14,083
|
|
|
(70
|
)
|
|
14,013
|
|
|
(9,648
|
)
|
|
—
|
|
|
4,365
|
|
||||||
Repurchase, securities lending, and similar arrangements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
14,083
|
|
|
$
|
(70
|
)
|
|
$
|
14,013
|
|
|
$
|
(9,648
|
)
|
|
$
|
—
|
|
|
$
|
4,365
|
|
14.
|
Other Noninterest (Loss) Income and Other Noninterest Expense
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Fund management fees
|
|
$
|
13,498
|
|
|
$
|
11,163
|
|
|
$
|
11,057
|
|
Service-based fee income
|
|
8,801
|
|
|
7,807
|
|
|
7,937
|
|
|||
Net gains on the sale of certain assets related to our equity management services business
|
|
—
|
|
|
—
|
|
|
4,243
|
|
|||
Net losses on the sale of certain assets related to our SVBIF business
|
|
(13,934
|
)
|
|
—
|
|
|
—
|
|
|||
(Losses) gains on revaluation of foreign currency instruments (1)
|
|
(21,636
|
)
|
|
3,016
|
|
|
1,677
|
|
|||
Other (2)
|
|
12,011
|
|
|
14,153
|
|
|
11,449
|
|
|||
Total other noninterest (loss) income
|
|
$
|
(1,260
|
)
|
|
$
|
36,139
|
|
|
$
|
36,363
|
|
|
(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.
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Client services
|
|
$
|
10,692
|
|
|
$
|
8,181
|
|
|
$
|
6,910
|
|
Tax credit fund amortization
|
|
9,691
|
|
|
6,436
|
|
|
3,911
|
|
|||
Data processing services
|
|
8,079
|
|
|
7,895
|
|
|
5,876
|
|
|||
Telephone
|
|
7,250
|
|
|
6,258
|
|
|
6,528
|
|
|||
Postage and supplies
|
|
3,196
|
|
|
2,462
|
|
|
2,482
|
|
|||
Dues and publications
|
|
2,549
|
|
|
1,745
|
|
|
2,067
|
|
|||
Other
|
|
12,939
|
|
|
8,950
|
|
|
8,188
|
|
|||
Total other noninterest expense
|
|
$
|
54,396
|
|
|
$
|
41,927
|
|
|
$
|
35,962
|
|
15.
|
Income Taxes
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Current provision:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
172,492
|
|
|
$
|
99,480
|
|
|
$
|
87,635
|
|
State
|
|
44,666
|
|
|
25,498
|
|
|
23,752
|
|
|||
Deferred expense (benefit):
|
|
|
|
|
|
|
||||||
Federal
|
|
(36,197
|
)
|
|
11,244
|
|
|
2,385
|
|
|||
State
|
|
(7,199
|
)
|
|
2,836
|
|
|
(503
|
)
|
|||
Income tax expense
|
|
$
|
173,762
|
|
|
$
|
139,058
|
|
|
$
|
113,269
|
|
|
|
December 31,
|
|||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
|||
Federal statutory income tax rate
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes, net of the federal tax effect
|
|
5.6
|
|
|
5.1
|
|
|
5.8
|
|
Meals and entertainment
|
|
0.3
|
|
|
0.5
|
|
|
0.5
|
|
Disallowed officer's compensation
|
|
0.3
|
|
|
0.1
|
|
|
0.1
|
|
Share-based compensation expense on incentive stock options and ESPP
|
|
0.1
|
|
|
(0.3
|
)
|
|
0.4
|
|
Tax-exempt interest income
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.4
|
)
|
Low-income housing tax credits
|
|
(1.8
|
)
|
|
(1.6
|
)
|
|
(1.2
|
)
|
Other, net
|
|
0.5
|
|
|
0.7
|
|
|
(0.9
|
)
|
Effective income tax rate
|
|
39.7
|
%
|
|
39.2
|
%
|
|
39.3
|
%
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Allowance for loan losses
|
|
$
|
80,554
|
|
|
$
|
69,616
|
|
Share-based compensation expense
|
|
15,249
|
|
|
14,535
|
|
||
Loan fee income
|
|
9,738
|
|
|
7,804
|
|
||
State income taxes
|
|
9,428
|
|
|
6,194
|
|
||
Net operating loss
|
|
8,641
|
|
|
9,682
|
|
||
Other accruals not currently deductible
|
|
7,601
|
|
|
4,869
|
|
||
Premises and equipment and other intangibles
|
|
1,344
|
|
|
734
|
|
||
Net unrealized losses on foreign currency translation
|
|
802
|
|
|
5,228
|
|
||
Research and development credit
|
|
324
|
|
|
324
|
|
||
Net unrealized losses on available-for-sale securities
|
|
—
|
|
|
27,686
|
|
||
Other
|
|
2,983
|
|
|
36
|
|
||
Deferred tax assets
|
|
136,664
|
|
|
146,708
|
|
||
Valuation allowance
|
|
(8,965
|
)
|
|
(10,006
|
)
|
||
Net deferred tax assets after valuation allowance
|
|
127,699
|
|
|
136,702
|
|
||
|
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
|
||||
Net unrealized gains on available-for-sale securities
|
|
(29,600
|
)
|
|
—
|
|
||
Non-marketable and other securities
|
|
(27,858
|
)
|
|
(55,921
|
)
|
||
Derivative equity warrant assets
|
|
(19,090
|
)
|
|
(10,344
|
)
|
||
FHLB stock dividend
|
|
(1,230
|
)
|
|
(1,236
|
)
|
||
Other
|
|
—
|
|
|
(964
|
)
|
||
Deferred tax liabilities
|
|
(77,778
|
)
|
|
(68,465
|
)
|
||
Net deferred tax assets
|
|
$
|
49,921
|
|
|
$
|
68,237
|
|
(Dollars in thousands)
|
|
Reconciliation of Unrecognized Tax Benefit
|
|
Interest & Penalties
|
|
Total
|
||||||
Balance at December 31, 2013
|
|
$
|
252
|
|
|
$
|
91
|
|
|
$
|
343
|
|
Additions for tax positions for current year
|
|
2,879
|
|
|
—
|
|
|
2,879
|
|
|||
Additions for tax positions for prior years
|
|
349
|
|
|
47
|
|
|
396
|
|
|||
Lapse of the applicable statute of limitations
|
|
(83
|
)
|
|
(38
|
)
|
|
(121
|
)
|
|||
Balance at December 31, 2014
|
|
$
|
3,397
|
|
|
$
|
100
|
|
|
$
|
3,497
|
|
16.
|
Employee Compensation and Benefit Plans
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Incentive Compensation Plan
|
|
$
|
78,014
|
|
|
$
|
66,232
|
|
|
$
|
46,467
|
|
Direct Drive Incentive Compensation Plan
|
|
20,153
|
|
|
22,941
|
|
|
24,556
|
|
|||
Retention Program
|
|
1,792
|
|
|
2,577
|
|
|
2,076
|
|
|||
Warrant Incentive Plan
|
|
3,926
|
|
|
5,818
|
|
|
2,523
|
|
|||
Deferred Compensation Plan
|
|
2,458
|
|
|
2,650
|
|
|
1,767
|
|
|||
SVBFG 401(k) Plan
|
|
11,996
|
|
|
11,277
|
|
|
9,947
|
|
|||
SVBFG ESOP
|
|
6,691
|
|
|
7,429
|
|
|
10,324
|
|
17.
|
Related Parties
|
18.
|
Off-Balance Sheet Arrangements, Guarantees and Other Commitments
|
Year ended December 31, (dollars in thousands) :
|
|
Amount
|
||
2015
|
|
$
|
21,683
|
|
2016
|
|
20,771
|
|
|
2017
|
|
20,510
|
|
|
2018
|
|
21,142
|
|
|
2019
|
|
21,074
|
|
|
2020 and thereafter
|
|
84,198
|
|
|
Net minimum operating lease payments
|
|
$
|
189,378
|
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Loan commitments available for funding: (1)
|
|
|
|
|
||||
Fixed interest rate commitments
|
|
$
|
1,591,408
|
|
|
$
|
1,392,781
|
|
Variable interest rate commitments
|
|
11,860,039
|
|
|
9,101,973
|
|
||
Total loan commitments available for funding
|
|
13,451,447
|
|
|
10,494,754
|
|
||
Commercial and standby letters of credit (2)
|
|
1,254,338
|
|
|
975,968
|
|
||
Total unfunded credit commitments
|
|
$
|
14,705,785
|
|
|
$
|
11,470,722
|
|
Commitments unavailable for funding (3)
|
|
$
|
1,868,489
|
|
|
$
|
1,006,168
|
|
Maximum lending limits for accounts receivable factoring arrangements (4)
|
|
1,044,548
|
|
|
894,276
|
|
||
Reserve for unfunded credit commitments (5)
|
|
36,419
|
|
|
29,983
|
|
|
(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.
|
(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
|
|
$
|
1,118,548
|
|
|
$
|
65,333
|
|
|
$
|
1,183,881
|
|
|
$
|
1,183,881
|
|
Performance standby letters of credit
|
|
59,034
|
|
|
5,157
|
|
|
64,191
|
|
|
64,191
|
|
||||
Commercial letters of credit
|
|
6,266
|
|
|
—
|
|
|
6,266
|
|
|
6,266
|
|
||||
Total
|
|
$
|
1,183,848
|
|
|
$
|
70,490
|
|
|
$
|
1,254,338
|
|
|
$
|
1,254,338
|
|
Our Ownership in Private Equity/Venture Capital 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
|
|
935
|
|
|
—
|
|
|
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
|
|
|
209
|
|
|
Various
|
|
||
Strategic Investors Fund VI Funds
|
|
—
|
|
|
—
|
|
|
—
|
|
||
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
|
|
||
Partners for Growth, LP
|
|
25,000
|
|
|
9,750
|
|
|
50.0
|
|
||
Debt funds (equity method accounting)
|
|
64,170
|
|
|
4,950
|
|
|
Various
|
|
||
Other fund investments (3)
|
|
299,913
|
|
|
19,449
|
|
|
Various
|
|
||
Total
|
|
$
|
501,968
|
|
|
$
|
41,468
|
|
|
|
|
(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
286
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.
|
Limited Partnership
(Dollars in thousands)
|
|
Unfunded Commitments
|
||
SVB Strategic Investors Fund, LP
|
|
$
|
2,250
|
|
SVB Strategic Investors Fund II, LP
|
|
5,133
|
|
|
SVB Strategic Investors Fund III, LP
|
|
12,706
|
|
|
SVB Strategic Investors Fund IV, LP
|
|
36,503
|
|
|
Strategic Investors Fund V Funds
|
|
140,362
|
|
|
Strategic Investors Fund VI Funds
|
|
254,248
|
|
|
SVB Capital Preferred Return Fund, LP
|
|
5,163
|
|
|
SVB Capital—NT Growth Partners, LP
|
|
5,872
|
|
|
Other private equity fund
|
|
77
|
|
|
Total
|
|
$
|
462,314
|
|
19.
|
Fair Value of Financial Instruments
|
(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
|
|
—
|
|
|
—
|
|
|
1,130,882
|
|
|
1,130,882
|
|
||||
Other venture capital investments
|
|
—
|
|
|
—
|
|
|
71,204
|
|
|
71,204
|
|
||||
Other securities
|
|
108,251
|
|
|
—
|
|
|
—
|
|
|
108,251
|
|
||||
Total non-marketable and other securities (fair value accounting)
|
|
108,251
|
|
|
—
|
|
|
1,202,086
|
|
|
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 (1)
|
|
$
|
7,414,814
|
|
|
$
|
6,277,384
|
|
|
$
|
1,316,784
|
|
|
$
|
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)
|
Included in Level 1 and Level 3 assets are
$100 million
and
$1.1 billion
, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at December 31, 2013
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency debentures
|
|
$
|
—
|
|
|
$
|
4,345,232
|
|
|
$
|
—
|
|
|
$
|
4,345,232
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
—
|
|
|
2,473,576
|
|
|
—
|
|
|
2,473,576
|
|
||||
Agency-issued collateralized mortgage obligations -
fixed rate
|
|
—
|
|
|
3,325,758
|
|
|
—
|
|
|
3,325,758
|
|
||||
Agency-issued collateralized mortgage obligations -
variable rate
|
|
—
|
|
|
1,186,573
|
|
|
—
|
|
|
1,186,573
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
—
|
|
|
564,604
|
|
|
—
|
|
|
564,604
|
|
||||
Municipal bonds and notes
|
|
—
|
|
|
86,027
|
|
|
—
|
|
|
86,027
|
|
||||
Equity securities
|
|
3,732
|
|
|
1,319
|
|
|
—
|
|
|
5,051
|
|
||||
Total available-for-sale securities
|
|
3,732
|
|
|
11,983,089
|
|
|
—
|
|
|
11,986,821
|
|
||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Non-marketable securities:
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
—
|
|
|
—
|
|
|
862,972
|
|
|
862,972
|
|
||||
Other venture capital investments
|
|
—
|
|
|
—
|
|
|
32,839
|
|
|
32,839
|
|
||||
Other securities
|
|
2,125
|
|
|
—
|
|
|
319,249
|
|
|
321,374
|
|
||||
Total non-marketable and other securities (fair value accounting)
|
|
2,125
|
|
|
—
|
|
|
1,215,060
|
|
|
1,217,185
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
6,492
|
|
|
—
|
|
|
6,492
|
|
||||
Foreign exchange forward and option contracts
|
|
—
|
|
|
15,530
|
|
|
—
|
|
|
15,530
|
|
||||
Equity warrant assets
|
|
—
|
|
|
3,622
|
|
|
99,891
|
|
|
103,513
|
|
||||
Loan conversion options
|
|
—
|
|
|
314
|
|
|
—
|
|
|
314
|
|
||||
Client interest rate derivatives
|
|
—
|
|
|
1,265
|
|
|
—
|
|
|
1,265
|
|
||||
Total assets (1)
|
|
$
|
5,857
|
|
|
$
|
12,010,312
|
|
|
$
|
1,314,951
|
|
|
$
|
13,331,120
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward and option contracts
|
|
$
|
—
|
|
|
$
|
12,617
|
|
|
$
|
—
|
|
|
$
|
12,617
|
|
Client interest rate derivatives
|
|
—
|
|
|
1,396
|
|
|
—
|
|
|
1,396
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
14,013
|
|
|
$
|
—
|
|
|
$
|
14,013
|
|
|
(1)
|
Included in Level 1 and Level 3 assets are
$2 million
and
$1.1 billion
, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.
|
(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, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Venture capital and private equity fund investments
|
|
$
|
862,972
|
|
|
$
|
263,484
|
|
|
$
|
224,233
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(219,807
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,130,882
|
|
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) (1)
|
|
1,215,060
|
|
|
380,141
|
|
|
275,640
|
|
|
(67,202
|
)
|
|
—
|
|
|
(221,291
|
)
|
|
—
|
|
|
(380,262
|
)
|
|
1,202,086
|
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity warrant assets (2)
|
|
99,891
|
|
|
71,516
|
|
|
—
|
|
|
(70,875
|
)
|
|
13,671
|
|
|
2,215
|
|
|
—
|
|
|
(1,720
|
)
|
|
114,698
|
|
|||||||||
Total assets
|
|
$
|
1,314,951
|
|
|
$
|
451,657
|
|
|
$
|
275,640
|
|
|
$
|
(138,077
|
)
|
|
$
|
13,671
|
|
|
$
|
(219,076
|
)
|
|
$
|
—
|
|
|
$
|
(381,982
|
)
|
|
$
|
1,316,784
|
|
Year ended December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Venture capital and private equity fund investments
|
|
$
|
665,921
|
|
|
$
|
169,219
|
|
|
$
|
146,564
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(118,732
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
862,972
|
|
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) (1)
|
|
793,012
|
|
|
397,332
|
|
|
149,276
|
|
|
(1,224
|
)
|
|
—
|
|
|
(119,775
|
)
|
|
—
|
|
|
(3,561
|
)
|
|
1,215,060
|
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity warrant assets (2)
|
|
66,129
|
|
|
22,929
|
|
|
—
|
|
|
(16,680
|
)
|
|
9,098
|
|
|
1,540
|
|
|
24,217
|
|
|
(7,342
|
)
|
|
99,891
|
|
|||||||||
Total assets
|
|
$
|
859,141
|
|
|
$
|
420,261
|
|
|
$
|
149,276
|
|
|
$
|
(17,904
|
)
|
|
$
|
9,098
|
|
|
$
|
(118,235
|
)
|
|
$
|
24,217
|
|
|
$
|
(10,903
|
)
|
|
$
|
1,314,951
|
|
Year ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Venture capital and private equity fund investments
|
|
$
|
611,824
|
|
|
$
|
44,283
|
|
|
$
|
122,238
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(112,424
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
665,921
|
|
Other venture capital investments
|
|
124,121
|
|
|
46,711
|
|
|
13,123
|
|
|
(9,716
|
)
|
|
—
|
|
|
(39,558
|
)
|
|
—
|
|
|
(7,590
|
)
|
|
127,091
|
|
|||||||||
Other investments
|
|
987
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,008
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total non-marketable and other securities (fair value accounting) (1)
|
|
736,932
|
|
|
91,015
|
|
|
135,361
|
|
|
(9,716
|
)
|
|
—
|
|
|
(152,990
|
)
|
|
—
|
|
|
(7,590
|
)
|
|
793,012
|
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity warrant assets (2)
|
|
63,030
|
|
|
13,697
|
|
|
—
|
|
|
(21,077
|
)
|
|
11,978
|
|
|
(78
|
)
|
|
—
|
|
|
(1,421
|
)
|
|
66,129
|
|
|||||||||
Total assets
|
|
$
|
799,962
|
|
|
$
|
104,712
|
|
|
$
|
135,361
|
|
|
$
|
(30,793
|
)
|
|
$
|
11,978
|
|
|
$
|
(153,068
|
)
|
|
$
|
—
|
|
|
$
|
(9,011
|
)
|
|
$
|
859,141
|
|
|
(1)
|
Realized and unrealized gains, net are recorded on the line items “gains on investment securities, net”, and “other noninterest income”, components of noninterest income.
|
(2)
|
Realized and unrealized gains are recorded on the line item “gains on derivative instruments, net”, a component of noninterest income.
|
|
|
Year ended December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments
|
|
$
|
276,686
|
|
|
$
|
168,567
|
|
Other venture capital investments (1)
|
|
3,044
|
|
|
6,207
|
|
||
Other securities (1)
|
|
—
|
|
|
222,368
|
|
||
Total non-marketable and other securities (fair value accounting) (2)
|
|
279,730
|
|
|
397,142
|
|
||
Other assets:
|
|
|
|
|
||||
Equity warrant assets (3)
|
|
36,516
|
|
|
30,579
|
|
||
Total unrealized gains, net
|
|
$
|
316,246
|
|
|
$
|
427,721
|
|
Unrealized gains attributable to noncontrolling interests
|
|
$
|
255,131
|
|
|
$
|
346,954
|
|
|
(1)
|
2013 included total unrealized valuation gains of
$219 million
attributable to two of our portfolio companies, FireEye and Twitter.
|
(2)
|
Unrealized gains are recorded on the line items “gains on investment securities, net”, and “other noninterest income”, components of noninterest income.
|
(3)
|
Unrealized gains are recorded on the line item “gains on derivative instruments, net”, a component of noninterest income.
|
(Dollars in thousands)
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Weighted Average
|
|||
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
|
|
|||||||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|||
Other venture capital investments (fair value accounting)
|
|
$
|
32,839
|
|
|
Private company equity pricing
|
|
(1)
|
|
(1)
|
|
Other securities
|
|
319,249
|
|
|
Modified stock price
|
|
Sales restrictions discount (2)
|
|
12.0
|
%
|
|
Equity warrant assets (public portfolio)
|
|
24,217
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
41.3
|
|
|
Risk-Free interest rate
|
1.7
|
|
|||||||||
Sales restrictions discount (2)
|
13.7
|
|
|||||||||
Equity warrant assets (private portfolio)
|
|
75,674
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
40.1
|
|
|
Risk-Free interest rate
|
0.8
|
|
|||||||||
Marketability discount (3)
|
22.5
|
|
|||||||||
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, 2014
, the weighted average contractual remaining term was
2.7
years, compared to our estimated remaining life of
5.9
years. On a quarterly basis, a sensitivity analysis is performed on our remaining life assumption.
|
|
|
|
|
Estimated Fair Value
|
||||||||||||
(Dollars in thousands)
|
|
Carrying Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2014:
|
|
|
|
|
|
|
|
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
1,796,062
|
|
|
$
|
1,796,062
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Held-to-maturity securities
|
|
7,421,042
|
|
|
—
|
|
|
7,415,656
|
|
|
—
|
|
||||
Non-marketable securities (cost and equity method accounting)
|
|
418,551
|
|
|
—
|
|
|
—
|
|
|
512,473
|
|
||||
Net commercial loans
|
|
12,947,869
|
|
|
—
|
|
|
—
|
|
|
13,082,487
|
|
||||
Net consumer loans
|
|
1,271,048
|
|
|
—
|
|
|
—
|
|
|
1,247,336
|
|
||||
Net long-lived assets held-for-sale
|
|
44,253
|
|
|
—
|
|
|
—
|
|
|
45,410
|
|
||||
FHLB and FRB stock
|
|
53,496
|
|
|
—
|
|
|
—
|
|
|
53,496
|
|
||||
Accrued interest receivable
|
|
94,180
|
|
|
—
|
|
|
94,180
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Other short-term borrowings
|
|
7,781
|
|
|
7,781
|
|
|
—
|
|
|
—
|
|
||||
Non-maturity deposits (1)
|
|
34,215,372
|
|
|
34,215,372
|
|
|
—
|
|
|
—
|
|
||||
Time deposits
|
|
128,127
|
|
|
—
|
|
|
128,107
|
|
|
—
|
|
||||
5.375% Senior Notes
|
|
348,436
|
|
|
—
|
|
|
392,616
|
|
|
—
|
|
||||
6.05% Subordinated Notes (2)
|
|
50,162
|
|
|
—
|
|
|
53,537
|
|
|
—
|
|
||||
7.0% Junior Subordinated Debentures
|
|
54,845
|
|
|
—
|
|
|
52,990
|
|
|
—
|
|
||||
Accrued interest payable
|
|
6,998
|
|
|
—
|
|
|
6,998
|
|
|
—
|
|
||||
Off-balance sheet financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Commitments to extend credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,097
|
|
||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
1,538,779
|
|
|
$
|
1,538,779
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-marketable securities (cost and equity method accounting)
|
|
378,309
|
|
|
—
|
|
|
—
|
|
|
447,783
|
|
||||
Net commercial loans
|
|
9,796,878
|
|
|
—
|
|
|
—
|
|
|
9,935,917
|
|
||||
Net consumer loans
|
|
966,622
|
|
|
—
|
|
|
—
|
|
|
1,005,080
|
|
||||
FHLB and FRB stock
|
|
40,632
|
|
|
—
|
|
|
—
|
|
|
40,632
|
|
||||
Accrued interest receivable
|
|
67,772
|
|
|
—
|
|
|
67,772
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Other short-term borrowings
|
|
5,080
|
|
|
5,080
|
|
|
—
|
|
|
—
|
|
||||
Non-maturity deposits (1)
|
|
22,259,119
|
|
|
22,259,119
|
|
|
—
|
|
|
—
|
|
||||
Time deposits
|
|
213,860
|
|
|
—
|
|
|
213,874
|
|
|
—
|
|
||||
5.375% Senior Notes
|
|
348,209
|
|
|
—
|
|
|
383,782
|
|
|
—
|
|
||||
6.05% Subordinated Notes (2)
|
|
51,987
|
|
|
—
|
|
|
56,297
|
|
|
—
|
|
||||
7.0% Junior Subordinated Debentures
|
|
55,020
|
|
|
—
|
|
|
51,915
|
|
|
—
|
|
||||
Accrued interest payable
|
|
6,858
|
|
|
—
|
|
|
6,858
|
|
|
—
|
|
||||
Off-balance sheet financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Commitments to extend credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,285
|
|
|
(1)
|
Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits.
|
(2)
|
At
December 31, 2014
and
2013
, included in the carrying value and estimated fair value of our
6.05%
Subordinated Notes was
$4.6 million
and
$6.5 million
, respectively, related to hedge accounting associated with the notes.
|
(Dollars in thousands)
|
|
Carrying Amount
|
|
Fair Value
|
|
Unfunded Commitments
|
||||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (1)
|
|
$
|
1,130,882
|
|
|
$
|
1,130,882
|
|
|
$
|
462,314
|
|
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
||||||
Other investments (2)
|
|
47,876
|
|
|
49,066
|
|
|
5,836
|
|
|||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (3)
|
|
140,551
|
|
|
234,053
|
|
|
18,563
|
|
|||
Total
|
|
$
|
1,319,309
|
|
|
$
|
1,414,001
|
|
|
$
|
486,713
|
|
|
(1)
|
Venture capital and private equity fund investments within non-marketable and other 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
$1.0 billion
and
$459 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)
|
Other investments within non-marketable securities (equity method accounting) include investments in debt funds and venture capital and private equity fund investments 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 fund investments over the next
10
to
13
years, depending on the age of the funds.
|
(3)
|
Venture capital and private equity fund investments within non-marketable securities (cost method accounting) include investments in venture capital and private equity fund investments that invest primarily in U.S. and global technology and life science & healthcare companies. 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 the terms of the funds.
|
20.
|
Regulatory Matters
|
|
|
Capital Ratios
|
|
Capital Amounts
|
|||||||||||||||||
(Dollars in thousands)
|
|
Actual
|
|
Well Capitalized Minimum
|
|
Adequately Capitalized Minimum
|
|
Actual
|
|
Well Capitalized Minimum
|
|
Adequately Capitalized Minimum
|
|||||||||
December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
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 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
|
|
|||
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
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
SVB Financial
|
|
13.13
|
%
|
|
10.0
|
%
|
|
8.0
|
%
|
|
$
|
2,218,996
|
|
|
$
|
1,690,150
|
|
|
$
|
1,352,120
|
|
Bank
|
|
11.32
|
|
|
10.0
|
|
|
8.0
|
|
|
1,880,254
|
|
|
1,661,287
|
|
|
1,329,030
|
|
|||
Tier 1 risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
SVB Financial
|
|
11.94
|
|
|
6.0
|
|
|
4.0
|
|
|
2,018,455
|
|
|
1,014,090
|
|
|
676,060
|
|
|||
Bank
|
|
10.11
|
|
|
6.0
|
|
|
4.0
|
|
|
1,680,212
|
|
|
996,772
|
|
|
664,515
|
|
|||
Tier 1 leverage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
SVB Financial
|
|
8.31
|
|
|
N/A
|
|
|
4.0
|
|
|
2,018,455
|
|
|
N/A
|
|
|
972,130
|
|
|||
Bank
|
|
7.04
|
|
|
5.0
|
|
|
4.0
|
|
|
1,680,212
|
|
|
1,194,012
|
|
|
955,210
|
|
21.
|
Segment Reporting
|
•
|
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 broadly 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. This practice is formerly known as SVB Specialty Lending and included our Community Development Finance practice which makes loans as part of our responsibilities under the Community Reinvestment Act. During the third quarter of 2014, management realigned the organizational structure of our Community Development Finance practice in order to improve its oversight and compliance for loans made as part of our responsibilities under the Community Reinvestment Act. This practice, formerly included in the GCB results, has been moved into "Other Items". Prior period results have been recast to conform to the new composition of these reportable segments and had no material effect on either the Global Commercial Bank or Other reporting segments.
|
◦
|
SVB Analytics
provides equity valuation services to companies and private equity/venture capital firms.
|
◦
|
Debt Fund Investments
is comprised of our investments in 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 through investment returns (including carried interest) and management fees.
|
(Dollars in thousands)
|
|
Global
Commercial
Bank (1)
|
|
SVB Private
Bank
|
|
SVB Capital
(1)
|
|
Other Items
(2)
|
|
Total
|
||||||||||
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
|
|
213,084
|
|
|
1,494
|
|
|
58,058
|
|
|
299,603
|
|
|
572,239
|
|
|||||
Noninterest expense (3)
|
|
(510,165
|
)
|
|
(10,571
|
)
|
|
(12,668
|
)
|
|
(183,467
|
)
|
|
(716,871
|
)
|
|||||
Income before income tax expense (4)
|
|
$
|
386,571
|
|
|
$
|
21,486
|
|
|
$
|
45,448
|
|
|
$
|
198,972
|
|
|
$
|
652,477
|
|
Total average loans, net of unearned income
|
|
$
|
10,286,448
|
|
|
$
|
1,157,024
|
|
|
$
|
—
|
|
|
$
|
59,469
|
|
|
$
|
11,502,941
|
|
Total average assets (5)
|
|
30,286,374
|
|
|
1,150,835
|
|
|
320,129
|
|
|
1,206,857
|
|
|
32,964,195
|
|
|||||
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)
|
|
(429,650
|
)
|
|
(9,195
|
)
|
|
(10,737
|
)
|
|
(172,098
|
)
|
|
(621,680
|
)
|
|||||
Income before income tax expense (4)
|
|
$
|
348,848
|
|
|
$
|
20,312
|
|
|
$
|
64,320
|
|
|
$
|
251,697
|
|
|
$
|
685,177
|
|
Total average loans, net of unearned income
|
|
$
|
8,401,943
|
|
|
$
|
919,831
|
|
|
$
|
—
|
|
|
$
|
29,604
|
|
|
$
|
9,351,378
|
|
Total average assets (5)
|
|
21,395,501
|
|
|
955,441
|
|
|
289,328
|
|
|
570,477
|
|
|
23,210,747
|
|
|||||
Total average deposits
|
|
19,072,608
|
|
|
524,398
|
|
|
—
|
|
|
22,188
|
|
|
19,619,194
|
|
|||||
Year ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
593,770
|
|
|
$
|
21,807
|
|
|
$
|
15
|
|
|
$
|
2,272
|
|
|
$
|
617,864
|
|
(Provision for) reduction of loan losses
|
|
(45,417
|
)
|
|
1,087
|
|
|
—
|
|
|
—
|
|
|
(44,330
|
)
|
|||||
Noninterest income
|
|
188,821
|
|
|
681
|
|
|
27,435
|
|
|
118,609
|
|
|
335,546
|
|
|||||
Noninterest expense (3)
|
|
(393,151
|
)
|
|
(7,388
|
)
|
|
(11,263
|
)
|
|
(134,196
|
)
|
|
(545,998
|
)
|
|||||
Income (loss) before income tax expense (4)
|
|
$
|
344,023
|
|
|
$
|
16,187
|
|
|
$
|
16,187
|
|
|
$
|
(13,315
|
)
|
|
$
|
363,082
|
|
Total average loans, net of unearned income
|
|
$
|
6,750,951
|
|
|
$
|
758,471
|
|
|
$
|
—
|
|
|
$
|
49,506
|
|
|
$
|
7,558,928
|
|
Total average assets (5)
|
|
19,557,289
|
|
|
759,251
|
|
|
239,335
|
|
|
755,297
|
|
|
21,311,172
|
|
|||||
Total average deposits
|
|
17,574,001
|
|
|
313,836
|
|
|
—
|
|
|
22,251
|
|
|
17,910,088
|
|
|
(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. 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. Additionally, average assets primarily consist of cash and cash equivalents and loans from our Community Development Finance practice as part of our responsibilities under the Community Reinvestment Act.
|
(3)
|
The Global Commercial Bank segment includes direct depreciation and amortization of
$20.9 million
,
$18.7 million
and
$14.4 million
for
2014
,
2013
and
2012
, 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 equals the greater of total average assets or the sum of total liabilities and total stockholders’ equity for each segment.
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
314,236
|
|
|
$
|
218,148
|
|
Investment securities
|
|
229,604
|
|
|
234,398
|
|
||
Net loans
|
|
16,684
|
|
|
4,791
|
|
||
Other assets
|
|
159,244
|
|
|
136,897
|
|
||
Investment in subsidiaries:
|
|
|
|
|
||||
Bank subsidiary
|
|
2,404,101
|
|
|
1,639,024
|
|
||
Nonbank subsidiaries
|
|
149,558
|
|
|
160,271
|
|
||
Total assets
|
|
$
|
3,273,427
|
|
|
$
|
2,393,529
|
|
|
|
|
|
|
||||
Liabilities and SVBFG stockholders’ equity:
|
|
|
|
|
||||
5.375% Senior Notes
|
|
$
|
348,435
|
|
|
$
|
348,209
|
|
7.0% Junior Subordinated Debentures
|
|
54,845
|
|
|
55,020
|
|
||
Other liabilities
|
|
52,385
|
|
|
24,030
|
|
||
Total liabilities
|
|
455,665
|
|
|
427,259
|
|
||
SVBFG stockholders’ equity
|
|
2,817,762
|
|
|
1,966,270
|
|
||
Total liabilities and SVBFG stockholders’ equity
|
|
$
|
3,273,427
|
|
|
$
|
2,393,529
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Interest income
|
|
$
|
2,534
|
|
|
$
|
3,545
|
|
|
$
|
3,282
|
|
Interest expense
|
|
(21,863
|
)
|
|
(24,408
|
)
|
|
(23,037
|
)
|
|||
Dividend income from bank subsidiary
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|||
Gains on derivative instruments, net
|
|
66,604
|
|
|
47,421
|
|
|
17,289
|
|
|||
Gains on investment securities, net
|
|
8,750
|
|
|
15,238
|
|
|
15,329
|
|
|||
Impairment loss on cumulative foreign currency translation losses
|
|
(9,564
|
)
|
|
—
|
|
|
—
|
|
|||
General and administrative expenses
|
|
(53,912
|
)
|
|
(54,389
|
)
|
|
(66,812
|
)
|
|||
Income tax (expense) benefit
|
|
(15,038
|
)
|
|
(15,824
|
)
|
|
12,200
|
|
|||
Loss before net income of subsidiaries
|
|
(22,489
|
)
|
|
(18,417
|
)
|
|
(41,749
|
)
|
|||
Equity in undistributed net income of nonbank subsidiaries
|
|
37,009
|
|
|
58,075
|
|
|
21,457
|
|
|||
Equity in undistributed net income of bank subsidiary
|
|
249,405
|
|
|
176,195
|
|
|
195,395
|
|
|||
Net income available to common stockholders
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
|
$
|
175,103
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net income available to common stockholders
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
|
$
|
175,103
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
||||||
Foreign currency translation gains (losses)
|
|
3,012
|
|
|
(3,128
|
)
|
|
(114
|
)
|
|||
Unrealized holding gains (losses) on securities available for sale
|
|
1,232
|
|
|
(1,449
|
)
|
|
2,074
|
|
|||
Equity in other comprehensive income (losses) of subsidiaries
|
|
87,224
|
|
|
(152,740
|
)
|
|
21,194
|
|
|||
Other comprehensive income (loss), net of tax
|
|
91,468
|
|
|
(157,317
|
)
|
|
23,154
|
|
|||
Total comprehensive income
|
|
$
|
355,393
|
|
|
$
|
58,536
|
|
|
$
|
198,257
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income attributable to SVBFG
|
|
$
|
263,925
|
|
|
$
|
215,853
|
|
|
$
|
175,103
|
|
Adjustments to reconcile net income to net cash used for operating activities:
|
|
|
|
|
|
|
||||||
Gains on derivative instruments, net
|
|
(66,604
|
)
|
|
(47,421
|
)
|
|
(17,289
|
)
|
|||
Gains on investment securities, net
|
|
(8,750
|
)
|
|
(15,238
|
)
|
|
(15,329
|
)
|
|||
Net income of bank subsidiary
|
|
(249,405
|
)
|
|
(186,195
|
)
|
|
(195,395
|
)
|
|||
Net income on nonbank subsidiaries
|
|
(37,009
|
)
|
|
(58,075
|
)
|
|
(21,457
|
)
|
|||
Cash dividends from bank subsidiary
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|||
Amortization of share-based compensation
|
|
29,545
|
|
|
25,413
|
|
|
21,861
|
|
|||
Decrease (increase) in other assets
|
|
44,006
|
|
|
(11,901
|
)
|
|
5,463
|
|
|||
Increase in other liabilities
|
|
28,303
|
|
|
1,506
|
|
|
3,952
|
|
|||
Impairment loss on SVBIF Sale Transaction
|
|
9,564
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
584
|
|
|
(1,269
|
)
|
|
2,273
|
|
|||
Net cash provided by (used for) operating activities
|
|
14,159
|
|
|
(67,327
|
)
|
|
(40,818
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Net decrease in investment securities from purchases, sales and maturities
|
|
15,469
|
|
|
70,479
|
|
|
11,833
|
|
|||
Net (increase) decrease in loans
|
|
(11,893
|
)
|
|
4,078
|
|
|
2,034
|
|
|||
(Increase) decrease in investment in bank subsidiary
|
|
(432,804
|
)
|
|
(21,469
|
)
|
|
12,180
|
|
|||
Decrease in investment in nonbank subsidiaries
|
|
44,714
|
|
|
9,925
|
|
|
13,012
|
|
|||
Net cash (used for) provided by investing activities
|
|
(384,514
|
)
|
|
63,013
|
|
|
39,059
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Principal payments of other long-term debt
|
|
—
|
|
|
—
|
|
|
(1,222
|
)
|
|||
Tax benefit from stock exercises
|
|
9,431
|
|
|
6,826
|
|
|
5,581
|
|
|||
Proceeds from issuance of common stock and ESPP
|
|
22,146
|
|
|
46,569
|
|
|
29,282
|
|
|||
Net proceeds from public equity offering
|
|
434,866
|
|
|
—
|
|
|
—
|
|
|||
Net cash provided by financing activities
|
|
466,443
|
|
|
53,395
|
|
|
33,641
|
|
|||
Net increase in cash and cash equivalents
|
|
96,088
|
|
|
49,081
|
|
|
31,882
|
|
|||
Cash and cash equivalents at beginning of period
|
|
218,148
|
|
|
169,067
|
|
|
137,185
|
|
|||
Cash and cash equivalents at end of period
|
|
$
|
314,236
|
|
|
$
|
218,148
|
|
|
$
|
169,067
|
|
23.
|
Unaudited Quarterly Financial Data
|
|
|
Three months ended
|
||||||||||||||
(Dollars in thousands, except per share amounts)
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
2014:
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
205,024
|
|
|
$
|
213,841
|
|
|
$
|
229,326
|
|
|
$
|
243,725
|
|
Interest expense
|
|
(8,696
|
)
|
|
(8,876
|
)
|
|
(8,761
|
)
|
|
(8,988
|
)
|
||||
Net interest income
|
|
196,328
|
|
|
204,965
|
|
|
220,565
|
|
|
234,737
|
|
||||
Provision for loan losses
|
|
(494
|
)
|
|
(1,947
|
)
|
|
(16,610
|
)
|
|
(40,435
|
)
|
||||
Noninterest income
|
|
310,225
|
|
|
14,210
|
|
|
80,167
|
|
|
167,637
|
|
||||
Noninterest expense
|
|
(172,436
|
)
|
|
(173,446
|
)
|
|
(181,989
|
)
|
|
(189,000
|
)
|
||||
Income before income tax expense
|
|
333,623
|
|
|
43,782
|
|
|
102,133
|
|
|
172,939
|
|
||||
Income tax expense
|
|
58,917
|
|
|
33,582
|
|
|
38,961
|
|
|
42,302
|
|
||||
Net income before noncontrolling interests
|
|
274,706
|
|
|
10,200
|
|
|
63,172
|
|
|
130,637
|
|
||||
Net (income) loss attributable to noncontrolling interests
|
|
(183,405
|
)
|
|
40,597
|
|
|
(177
|
)
|
|
(71,805
|
)
|
||||
Net income available to common stockholders
|
|
$
|
91,301
|
|
|
$
|
50,797
|
|
|
$
|
62,995
|
|
|
$
|
58,832
|
|
Earnings per common share—basic
|
|
$
|
1.99
|
|
|
$
|
1.05
|
|
|
$
|
1.24
|
|
|
$
|
1.16
|
|
Earnings per common share—diluted
|
|
1.95
|
|
|
1.04
|
|
|
1.22
|
|
|
1.14
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
2013:
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
171,014
|
|
|
$
|
177,983
|
|
|
$
|
185,240
|
|
|
$
|
195,384
|
|
Interest expense
|
|
(7,845
|
)
|
|
(7,902
|
)
|
|
(8,144
|
)
|
|
(8,386
|
)
|
||||
Net interest income
|
|
163,169
|
|
|
170,081
|
|
|
177,096
|
|
|
186,998
|
|
||||
Provision for loan losses
|
|
(5,813
|
)
|
|
(18,572
|
)
|
|
(10,638
|
)
|
|
(28,670
|
)
|
||||
Noninterest income
|
|
78,604
|
|
|
98,239
|
|
|
257,650
|
|
|
238,713
|
|
||||
Noninterest expense
|
|
(149,014
|
)
|
|
(143,292
|
)
|
|
(160,524
|
)
|
|
(168,850
|
)
|
||||
Income before income tax expense
|
|
86,946
|
|
|
106,456
|
|
|
263,584
|
|
|
228,191
|
|
||||
Income tax expense
|
|
26,401
|
|
|
29,968
|
|
|
47,404
|
|
|
35,285
|
|
||||
Net income before noncontrolling interests
|
|
60,545
|
|
|
76,488
|
|
|
216,180
|
|
|
192,906
|
|
||||
Net income attributable to noncontrolling interests
|
|
(19,654
|
)
|
|
(27,904
|
)
|
|
(148,559
|
)
|
|
(134,149
|
)
|
||||
Net income available to common stockholders
|
|
$
|
40,891
|
|
|
$
|
48,584
|
|
|
$
|
67,621
|
|
|
$
|
58,757
|
|
Earnings per common share—basic
|
|
$
|
0.91
|
|
|
$
|
1.08
|
|
|
$
|
1.48
|
|
|
$
|
1.29
|
|
Earnings per common share—diluted
|
|
0.90
|
|
|
1.06
|
|
|
1.46
|
|
|
1.27
|
|
24.
|
Legal Matters
|
25.
|
Subsequent Events
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM
|
9A. CONTROLS AND PROCEDURES
|
(a)
|
Disclosure Controls and Procedures
|
(b)
|
Internal Control Over Financial Reporting
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT, AND RELATED STOCKHOLDER MATTERS
|
Plan category
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights (1)
|
|
Weighted-average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (2)
|
||||
Equity compensation plans approved by stockholders
|
|
1,394,888
|
|
|
$
|
66.03
|
|
|
3,774,613
|
|
Equity compensation plans not approved by stockholders
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
Total
|
|
1,394,888
|
|
|
$
|
66.03
|
|
|
3,774,613
|
|
|
(1)
|
Represents options granted under our 2006 Equity Incentive Plan. This number does not include securities to be issued for unvested restricted stock units of
614,666
shares.
|
(2)
|
Includes shares available for issuance under our 2006 Equity Incentive Plan and
566,199
shares available for issuance under the 1999 Employee Stock Purchase Plan. This amount excludes securities already granted under our 2006 Equity Incentive Plan (as discussed above).
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(a)
|
Financial Statements and Exhibits:
|
|
|
Page
|
|
|
|
(1)
|
Financial Statements.
The following consolidated financial statements of the registrant and
its subsidiaries are included in Part II Item 8:
|
|
|
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
Consolidated Balance Sheets as of December 31, 2014 and 2013
|
|
|
Consolidated Statements of Income for the three years ended December 31, 2014
|
|
|
Consolidated Statements of Comprehensive Income for the three years ended December 31, 2014
|
|
|
Consolidated Statements of Stockholders' Equity for the three years ended December 31, 2014
|
|
|
Consolidated Statements of Cash Flows for the three years ended December 31, 2014
|
|
|
Notes to the Consolidated Financial Statements
|
|
|
|
|
(2)
|
Financial Statement Schedule.
The consolidated financial statements and supplemental data are contained in Part II Item 8. All schedules other than as set forth above are omitted because of the absence of the conditions under which they are required or because the required information is included in the consolidated financial statements or related notes in Part II Item 8.
|
|
|
|
|
(3)
|
Exhibits.
See Index to Exhibits included at the end of this Form 10-K
|
SVB Financial Group
|
|
/s/ GREG W. BECKER
|
Greg W. Becker
|
President and Chief Executive Officer
|
Dated: February 26, 2015
|
Signature
|
Title
|
Date
|
|
|
|
/s/ ROGER F. DUNBAR
|
Chairman of the Board of Directors and Director
|
February 26, 2015
|
Roger F. Dunbar
|
|
|
|
|
|
/s/ GREG W. BECKER
|
President, Chief Executive Officer and Director (Principal Executive Officer)
|
February 26, 2015
|
Greg W. Becker
|
|
|
|
|
|
/s/ MICHAEL R. DESCHENEAUX
|
Chief Financial Officer (Principal Financial Officer)
|
February 26, 2015
|
Michael R. Descheneaux
|
|
|
|
|
|
/s/ KAMRAN F. HUSAIN
|
Chief Accounting Officer (Principal Accounting Officer)
|
February 26, 2015
|
Kamran F. Husain
|
|
|
|
|
|
/s/ ERIC A. BENHAMOU
|
Director
|
February 26, 2015
|
Eric A. Benhamou
|
|
|
|
|
|
/s/ DAVID M. CLAPPER
|
Director
|
February 26, 2015
|
David M. Clapper
|
|
|
|
|
|
/s/ JOEL P. FRIEDMAN
|
Director
|
February 26, 2015
|
Joel P. Friedman
|
|
|
|
|
|
/s/ C. RICHARD KRAMLICH
|
Director
|
February 26, 2015
|
C. Richard Kramlich
|
|
|
|
|
|
/s/ LATA KRISHNAN
|
Director
|
February 26, 2015
|
Lata Krishnan
|
|
|
|
|
|
/s/ JEFFREY N. MAGGIONCALDA
|
Director
|
February 26, 2015
|
Jeffrey N. Maggioncalda
|
|
|
|
|
|
/s/ KATE D. MITCHELL
|
Director
|
February 26, 2015
|
Kate D. Mitchell
|
|
|
|
|
|
/s/ JOHN F. ROBINSON
|
Director
|
February 26, 2015
|
John F. Robinson
|
|
|
|
|
|
/s/ GAREN K. STAGLIN
|
Director
|
February 26, 2015
|
Garen K. Staglin
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|||||
3.1
|
|
Restated Certificate of Incorporation
|
|
8-K
|
|
000-15637
|
|
3.1
|
|
May 31, 2005
|
|
|
3.2
|
|
Amended and Restated Bylaws
|
|
8-K
|
|
000-15637
|
|
3.2
|
|
July 27, 2010
|
|
|
3.3
|
|
Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Preferred Stock
|
|
8-K
|
|
000-15637
|
|
3.3
|
|
December 8, 2008
|
|
|
3.4
|
|
Certificate of Designations for Fixed Rate Cumulative Perpetual Preferred Stock, Series B
|
|
8-K
|
|
000-15637
|
|
3.4
|
|
December 15, 2008
|
|
|
4.1
|
|
Junior Subordinated Indenture, dated as of October 30, 2003 between SVB Financial and Wilmington Trust Company, as trustee
|
|
8-K
|
|
000-15637
|
|
4.12
|
|
November 19, 2003
|
|
|
4.2
|
|
7.0% Junior Subordinated Deferrable Interest Debenture due October 15, 2033 of SVB Financial
|
|
8-K
|
|
000-15637
|
|
4.13
|
|
November 19, 2003
|
|
|
4.3
|
|
Amended and Restated Trust Agreement, dated as of October 30, 2003, by and among SVB Financial as Depositor, Wilmington Trust Company as Property Trustee, Wilmington Trust Company as Delaware trustee, and the Administrative Trustees named therein
|
|
8-K
|
|
000-15637
|
|
4.14
|
|
November 19, 2003
|
|
|
4.4
|
|
Certificate Evidencing 7% Cumulative Trust Preferred Securities of SVB Capital II, dated as of October 20, 2003
|
|
8-K
|
|
000-15637
|
|
4.15
|
|
November 19, 2003
|
|
|
4.5
|
|
Guarantee Agreement, dated as of October 30, 2003 between SVB Financial and Wilmington Trust Company, as trustee
|
|
8-K
|
|
000-15637
|
|
4.16
|
|
November 19, 2003
|
|
|
4.6
|
|
Agreement as to Expenses and Liabilities, dated as of October 30, 2003, between SVB Financial and SVB Capital II
|
|
8-K
|
|
000-15637
|
|
4.17
|
|
November 19, 2003
|
|
|
4.7
|
|
Certificate Evidencing 7% Common Securities of SVB Capital II, dated as of October 30, 2003
|
|
8-K
|
|
000-15637
|
|
4.18
|
|
November 19, 2003
|
|
|
4.8
|
|
Officers' Certificate and Company Order, dated as of October 30, 2003, relating to the 7.0% Junior Subordinated Deferrable Interest Debentures due October 15, 2033
|
|
8-K
|
|
000-15637
|
|
4.19
|
|
November 19, 2003
|
|
|
4.9
|
|
Amended and Restated Preferred Stock Rights Agreement dated as of January 29, 2004, between SVB Financial and Wells Fargo Bank Minnesota, N.A.
|
|
8-A/A
|
|
000-15637
|
|
4.20
|
|
February 27, 2004
|
|
|
4.10
|
|
Amendment No. 1 to Amended and Restated Preferred Stock Rights Agreement, dated as of August 2, 2004, by and between SVB Financial and Wells Fargo Bank, N.A.
|
|
8-A/A
|
|
000-15637
|
|
4.13
|
|
August 3, 2004
|
|
|
4.11
|
|
Amendment No. 2 to Amended and Restated Preferred Stock Rights Agreement, dated as of August 2, 2004, by and between SVB Financial and Wells Fargo Bank, N.A.
|
|
8-A/A
|
|
000-15637
|
|
4.14
|
|
January 29, 2008
|
|
|
4.12
|
|
Amendment No. 3 to Amended and Restated Preferred Stock Rights Agreement, dated as of April 30, 2008, by and between SVB Financial and Wells Fargo Bank, N.A.
|
|
8-A/A
|
|
000-15637
|
|
4.20
|
|
April 30, 2008
|
|
|
4.13
|
|
Amendment No. 4 to Amended and Restated Preferred Stock Rights Agreement, dated as of January 15, 2010, by and between SVB Financial, Wells Fargo Bank, N.A. and American Stock Transfer and Trust Company, LLC
|
|
8-A/A
|
|
000-15637
|
|
4.22
|
|
January 19, 2010
|
|
|
4.14
|
|
Indenture, dated September 20, 2010, by and between SVB Financial and U.S. Bank National Association, as trustee
|
|
8-K
|
|
000-15637
|
|
4.1
|
|
September 20, 2010
|
|
|
4.15
|
|
Form of 5.375% Senior Note due 2020
|
|
8-K
|
|
000-15637
|
|
4.2
|
|
September 20, 2010
|
|
|
4.16
|
|
Officer's Certificate, dated as of January 29, 2015, relating to the 3.50% Senior Note Due 2025
|
|
8-K
|
|
000-15637
|
|
4.2
|
|
January 29, 2015
|
|
|
4.17
|
|
Form of 3.50% Senior Note due 2025
|
|
8-K
|
|
000-15637
|
|
4.3
|
|
January 29, 2015
|
|
|
10.1
|
|
Office Lease Agreement, dated as of September 15, 2004, between CA-Lake Marriott Business Park Limited Partnership and Silicon Valley Bank: 3001, 3003 and 3101 Tasman Drive, Santa Clara, CA 95054
|
|
8-K
|
|
000-15637
|
|
10.28
|
|
September 20, 2004
|
|
|
*10.2
|
|
401(k) and Employee Stock Ownership Plan
|
|
10-K
|
|
000-15637
|
|
10.2
|
|
February 27, 2014
|
|
|
*10.3
|
|
Amended and Restated Retention Program Plan (RP Years 1999 - 2007)
|
|
10-Q
|
|
000-15637
|
|
10.4
|
|
August 7, 2008
|
|
|
*10.4
|
|
1999 Employee Stock Purchase Plan
|
|
DEF 14A
|
|
000-15637
|
|
A
|
|
March 10, 2010
|
|
|
*10.5
|
|
1997 Equity Incentive Plan, as amended
|
|
DEF 14A
|
|
000-15637
|
|
B-1
|
|
March 16, 2005
|
|
|
*10.6
|
|
Form of Indemnification Agreement
|
|
10-Q
|
|
000-15637
|
|
10.7
|
|
November 6, 2009
|
|
|
*10.7
|
|
Incentive Compensation Plan
|
|
8-K
|
|
000-15637
|
|
10.9
|
|
January 9, 2015
|
|
|
*10.8
|
|
Deferred Compensation Plan
|
|
10-Q
|
|
000-15637
|
|
10.1
|
|
August 8, 2014
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|||||
*10.9
|
|
Form of Restricted Stock Unit Agreement under 1997 Equity Incentive Plan
|
|
8-K
|
|
000-15637
|
|
10.30
|
|
November 5, 2004
|
|
|
*10.10
|
|
Form of Incentive Stock Option Agreement under 1997 Equity Incentive Plan
|
|
10-Q
|
|
000-15637
|
|
10.31
|
|
November 9, 2004
|
|
|
*10.11
|
|
Form of Nonstatutory Stock Option Agreement under 1997 Equity Incentive Plan
|
|
10-Q
|
|
000-15637
|
|
10.32
|
|
November 9, 2004
|
|
|
*10.12
|
|
Form of Restricted Stock Bonus Agreement under 1997 Equity Incentive Plan
|
|
10-Q
|
|
000-15637
|
|
10.33
|
|
November 9, 2004
|
|
|
*10.13
|
|
Change in Control Severance Plan
|
|
8-K
|
|
000-15637
|
|
10.14
|
|
March 15, 2012
|
|
|
*10.14
|
|
2006 Equity Incentive Plan
|
|
8-K
|
|
000-15637
|
|
10.1
|
|
January 9, 2015
|
|
|
*10.15
|
|
Form of Incentive Stock Option Agreement under 2006 Equity Incentive Plan
+
|
|
10-Q
|
|
000-15637
|
|
10.16
|
|
August 7, 2009
|
|
|
*10.16
|
|
Form of Nonqualified Stock Option Agreement under 2006 Equity Incentive Plan
+
|
|
10-Q
|
|
000-15637
|
|
10.17
|
|
August 7, 2009
|
|
|
*10.17
|
|
Form of Restricted Stock Unit Agreement under 2006 Equity Incentive Plan (for Executives)
+
|
|
10-Q
|
|
000-15637
|
|
10.18
|
|
August 7, 2009
|
|
|
*10.18
|
|
Form of Restricted Stock Unit Agreement for Employees under 2006 Equity Incentive Plan
+
|
|
10-Q
|
|
000-15637
|
|
10.19
|
|
August 7, 2009
|
|
|
*10.19
|
|
Form of Restricted Stock Award Agreement under 2006 Equity Incentive Plan
+
|
|
10-Q
|
|
000-15637
|
|
10.20
|
|
August 7, 2009
|
|
|
*10.20
|
|
Offer Letter dated November 2, 2006, for Michael Descheneaux
|
|
8-K
|
|
000-15637
|
|
10.31
|
|
April 17, 2007
|
|
|
*10.21
|
|
Offer Letter dated April 25, 2007, for Michael Descheneaux
|
|
8-K/A
|
|
000-15637
|
|
10.32
|
|
May 2, 2007
|
|
|
*10.22
|
|
Form of Restricted Stock Unit Agreement under 2006 Equity Incentive Plan (for Directors)
+
|
|
10-Q
|
|
000-15637
|
|
10.23
|
|
August 7, 2009
|
|
|
*10.23
|
|
Form of Restricted Stock Unit Election to Defer Settlement under 2006 Equity Incentive Plan (for Directors)
+
|
|
10-Q
|
|
000-15637
|
|
10.24
|
|
November 10, 2008
|
|
|
*10.24
|
|
Form of Restricted Stock Unit Election to Defer Settlement under 2006 Equity Incentive Plan (for Executives)
+
|
|
10-Q
|
|
000-15637
|
|
10.27
|
|
November 10, 2008
|
|
|
*10.25
|
|
Retention Program Plan (RP Years Beginning 2008)
|
|
10-Q
|
|
000-15637
|
|
10.26
|
|
August 7, 2008
|
|
|
*10.26
|
|
Form of Letter Agreement with Michael Descheneaux re: Salary Changes
|
|
8-K
|
|
000-15637
|
|
10.31
|
|
May 14, 2009
|
|
|
*10.27
|
|
Form of Stock Appreciation Right Agreement under 2006 Equity Incentive Plan
+
|
|
10-Q
|
|
000-15637
|
|
10.32
|
|
August 7, 2009
|
|
|
*10.28
|
|
Form of Restricted Stock Unit Agreement for Cash Settlement for Employees under 2006 Equity Incentive Plan
+
|
|
10-Q
|
|
000-15637
|
|
10.33
|
|
August 7, 2009
|
|
|
*10.29
|
|
Form of Restricted Stock Unit Agreement for Cash Settlement for Directors under 2006 Equity Incentive Plan
+
|
|
10-Q
|
|
000-15637
|
|
10.34
|
|
August 7, 2009
|
|
|
*10.30
|
|
SVB Financial Group Long-Term Cash Incentive Plan
|
|
8-K
|
|
000-15637
|
|
10.35
|
|
July 27, 2010
|
|
|
*10.31
|
|
Form of Restricted Stock Award Agreement under 2006 Equity Incentive Plan
++
|
|
10-K
|
|
000-15637
|
|
10.33
|
|
February 27, 2014
|
|
|
*10.32
|
|
Form of Incentive Stock Option Agreement under 2006 Equity Incentive Plan
++
|
|
10-K
|
|
000-15637
|
|
10.34
|
|
February 27, 2014
|
|
|
*10.33
|
|
Form of Nonqualified Stock Option Agreement under 2006 Equity Incentive Plan
++
|
|
10-K
|
|
000-15637
|
|
10.35
|
|
February 27, 2014
|
|
|
*10.34
|
|
Form of Restricted Stock Unit Agreement under 2006 Equity Incentive Plan
++
|
|
10-K
|
|
000-15637
|
|
10.36
|
|
February 27, 2014
|
|
|
*10.35
|
|
Form of Restricted Stock Unit Award Agreement under 2006 Equity Incentive Plan (Performance-Based)
++
|
|
10-K
|
|
000-15637
|
|
10.37
|
|
February 27, 2014
|
|
|
*10.36
|
|
Form of Stock Appreciation Rights Agreement under 2006 Equity Incentive Plan++
|
|
10-K
|
|
000-15637
|
|
10.38
|
|
February 27, 2014
|
|
|
*10.37
|
|
UK Sub-Plan of the 2006 Equity Incentive Plan++
|
|
10-Q
|
|
000-15637
|
|
10.3
|
|
May 9, 2014
|
|
|
*10.38
|
|
Form of U.K. Approved Stock Options and Award Agreement under the UK Sub-Plan++
|
|
10-Q
|
|
000-15637
|
|
10.4
|
|
May 9, 2014
|
|
|
*10.39
|
|
Israeli Sub-Plan of the 2006 Equity Incentive Plan++
|
|
10-Q
|
|
000-15637
|
|
10.5
|
|
May 9, 2014
|
|
|
*10.40
|
|
Form of Incentive Stock Option Agreement under 2006 Equity Incentive Plan+++
|
|
8-K
|
|
000-15637
|
|
10.2
|
|
January 9, 2015
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|||||
*10.41
|
|
Form of Nonqualified Stock Option Agreement under 2006 Equity Incentive Plan+++
|
|
8-K
|
|
000-15637
|
|
10.3
|
|
January 9, 2015
|
|
|
*10.42
|
|
Form of Restricted Stock Unit Agreement under 2006 Equity Incentive Plan (Subject to Time-Based Vesting)+++
|
|
8-K
|
|
000-15637
|
|
10.4
|
|
January 9, 2015
|
|
|
*10.43
|
|
Form of Restricted Stock Unit Agreement under 2006 Incentive Plan (Subject to Performance-Based Vesting)+++
|
|
8-K
|
|
000-15637
|
|
10.5
|
|
January 9, 2015
|
|
|
*10.44
|
|
Form of Restricted Stock Award Agreement under 2006 Equity Incentive Plan+++
|
|
8-K
|
|
000-15637
|
|
10.6
|
|
January 9, 2015
|
|
|
*10.45
|
|
Form of Stock Appreciation Rights Agreement under 2006 Equity Incentive Plan+++
|
|
8-K
|
|
000-15637
|
|
10.7
|
|
January 9, 2015
|
|
|
*10.46
|
|
Form of U.K-Approved Stock Option Agreement+++
|
|
8-K
|
|
000-15637
|
|
10.8
|
|
January 9, 2015
|
|
|
*10.47
|
|
Service Agreement, dated July 14, 2009, between SVB Financial Group UK Limited and Philip Cox
|
|
|
|
|
|
|
|
|
|
X
|
14.1
|
|
Code of Ethics
|
|
10-K
|
|
000-15637
|
|
14.1
|
|
March 11, 2004
|
|
|
21.1
|
|
Subsidiaries of SVB Financial
|
|
|
|
|
|
|
|
|
|
X
|
23.1
|
|
Consent of KPMG LLP, independent registered public accounting firm
|
|
|
|
|
|
|
|
|
|
X
|
31.1
|
|
Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Executive Officer
|
|
|
|
|
|
|
|
|
|
X
|
31.2
|
|
Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Financial Officer
|
|
|
|
|
|
|
|
|
|
X
|
32.1
|
|
Section 1350 Certifications
|
|
|
|
|
|
|
|
|
|
**
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
*
|
Denotes management contract or any compensatory plan, contract or arrangement.
|
**
|
Furnished herewith
|
+
|
Forms applicable to grants made under the 2006 Equity Incentive Plan during 2013 and prior years.
|
++
|
Forms applicable to grants made under the 2006 Equity Incentive Plan during 2014.
|
+++
|
Forms applicable to grants made under the 2006 Equity Incentive Plan beginning in 2015.
|
1.
|
Definitions and interpretation
|
1
|
|
2.
|
Appointment
|
3
|
|
3.
|
Term
|
3
|
|
4.
|
Duties
|
3
|
|
5.
|
Hours of work
|
5
|
|
6.
|
Place of Work
|
5
|
|
7.
|
Expenses
|
5
|
|
8.
|
Salary
|
5
|
|
9.
|
Incentive Compensation Plan (bonus)
|
6
|
|
10.
|
Signing bonus
|
6
|
|
11.
|
Enhanced redundancy
|
6
|
|
12.
|
Pension
|
7
|
|
13.
|
Other Benefits
|
7
|
|
14.
|
Share Option and Long Term Incentive Plan
|
7
|
|
15.
|
Holidays
|
7
|
|
16.
|
Sickness Absence
|
8
|
|
17.
|
Sick Pay
|
8
|
|
18.
|
Obligations during Employment
|
9
|
|
19.
|
Confidential Information
|
10
|
|
20.
|
Intellectual Property
|
11
|
|
21.
|
Garden Leave
|
11
|
|
22.
|
Payment in lieu of notice
|
13
|
|
23.
|
Summary Termination
|
13
|
|
24.
|
Retirement
|
14
|
|
25.
|
Reconstruction and Amalgamation
|
14
|
|
26.
|
Obligations after Employment
|
14
|
|
27.
|
Property
|
15
|
|
28.
|
Resignation from Appointments
|
15
|
|
29.
|
Suspension
|
15
|
|
30.
|
Disciplinary and Dismissal Rules
|
15
|
|
31.
|
Grievance
|
15
|
|
32.
|
Data Protection
|
16
|
|
33.
|
Warranty
|
17
|
|
34.
|
Deductions
|
17
|
|
35.
|
Power of Attorney
|
17
|
|
36.
|
Collective Agreements
|
17
|
|
37.
|
Entire Agreement
|
17
|
|
38.
|
Third Parties
|
17
|
|
39.
|
Assurances
|
18
|
|
40.
|
Releases and waivers
|
18
|
|
41.
|
Notices
|
18
|
|
42.
|
Governing law and jurisdiction
|
18
|
|
Schedule 1
|
19
|
|
|
(Post termination restrictions
|
19
|
|
(1)
|
SVB Financial Group UK Limited
(Company number: 05572575 whose registered office is at 34 Dover Street, London WlS 4NG, United Kingdom
("Company");
and
|
(2)
|
Philip Cox ("You").
|
1.
|
Definitions and interpretation
|
1.1
|
In this Agreement, unless the context otherwise requires:
|
(a)
|
information relating to the business methods, corporate plans, management systems, finances, new business opportunities, research and development projects, marketing or sales of any past, present or future product or service;
|
(b)
|
secret formulae, processes, inventions, designs, know-how discoveries, technical specifications and other technical information relating to the creation, production or supply of any past, present or future product or service of the Company and/or any Group Company;
|
(c)
|
lists or details of customers, potential customers or suppliers or the arrangements made with any customer or supplier; and
|
(d)
|
any information in respect of which the Company and/or any Group Company owes an obligation of confidentiality to any third party.
|
(a)
|
the holding of any position (whether employed or engaged) or the provision of services as director, officer, employee, consultant , adviser, partner, principal, agent or volunteer;
|
(b)
|
the direct or indirect control or ownership (whether jointly or alone) of any shares (or any voting rights attached to them) or debentures save for the ownership for investment purposes only of not more than 5 per cent of the issued ordinary shares of any company whose shares are listed on any Recognised Exchange ; or
|
(c)
|
the direct or indirect provision of any financial assistance.
|
1.2
|
In this Agreement, unless the context otherwise requires:
|
(a)
|
words in the singular include the plural and vice versa and words in one gender include any other gender;
|
(b)
|
a reference to a statute or statutory provision includes:
|
(i)
|
any subordinate legislation (as defined in Section 21(1), Interpretation Act 1978) made under it; and
|
(ii)
|
any statute or statutory provision which modifies, consolidates, re-enacts or supersedes it;
|
(c)
|
a reference to:
|
(i)
|
a
"person"
includes any individual, firm, body corporate, association or partnership , government or state (whether or not having a separate legal personality);
|
(ii)
|
clauses and schedules are to clauses and schedules of this Agreement and references to sub-clauses and paragraphs are references to sub-clauses and paragraphs of the clause or schedule in which they appear; and
|
(d)
|
Except where otherwise stated, words and phrases defined in the City Code on Take-overs and Mergers or in the Companies Act 2006 have the same meaning in this Agreement.
|
2.
|
Appointment
|
3.
|
Term
|
3.1
|
Your Employment with the Company shall commence on the Commencement Date. No previous employment shall count as part of your continuous period of employment.
|
3.2
|
Subject to the terms of this Agreement, and unless terminated in accordance with clause 23, your Employment shall continue until terminated by either party giving to the other not less than 3 months' prior written notice.
|
4.
|
Duties
|
4.1
|
You shall carry out such duties as attach to your office of Head of UK, Europe & Israel, Global
Markets and any other duties for the Company and/or any Group Company (whether or not commensurate with your position) which the Company assigns to you from time to time.
|
4.2
|
Without additional remuneration, you shall accept and bold for such period(s) as specified by the Company, any office(s) including any post(s) as director, company secretary, trustee, nominee and/or representative of the Company and/or any Group Company.
|
4.3
|
Subject to the terms of this Agreement, you shall:
|
(a)
|
devote the whole of your working time and attention to the Employment;
|
(b)
|
perform the Duties faithfully and diligently and exercise such powers consistent with those Duties as are assigned to or vested in you by the Company and/or any Group Company and in all cases you shall do so jointly with any person(s) appointed by the Company from time to time;
|
(c)
|
comply with all common law, fiduciary and statutory duties to the Company and any Group Company, including, but not limited to the seven statutory duties set out in s 171 - 177 Companies Act 2006, so far as they are in force;
|
(d)
|
obey all lawful and reasonable directions of the Company;
|
(e)
|
observe in form and spirit such restrictions or limitations as may from time to time be imposed by the Company;
|
(f)
|
implement and observe in form and spirit any relevant Company and/or Group Company policy, procedures, rules and regulations (whether formal or informal);
|
(g)
|
use your best endeavours to foster the Company's interests and save where this causes a conflict with the Company's interests, those of its other Group Companies;
|
(h)
|
report to the Company any relevant wrongdoing (including any misconduct or dishonesty) whether committed, contemplated or discussed by any director, employee or worker of the Company and/or any Group Company of which you are aware and irrespective of whether this may involve any degree of self incrimination; and
|
(i)
|
keep the Company properly and fully informed in such manner prescribed (with explanations where requested) of your compliance with the Duties and the affairs of the Company and/or any Group Company; and
|
(j)
|
do such things necessary to ensure that you and the Company and/or any relevant Group Company comply with the Combined Code on Corporate Governance of the UK Listing Authority.
|
5.
|
Hours of work
|
6.
|
Place of Work
|
6.1
|
Your principal place of work shall be at 34 Dover Street, London WlS 4NG. The Company reserves the right to change your principal place of work on giving reasonable prior notice to you.
|
6.2
|
You shall travel to and work on a temporary basis from such locations within and outside of the United Kingdom as the Company may reasonably require. There is no current requirement for you to work outside the United Kingdom for any consecutive period of one month or more.
|
7.
|
Expenses
|
7.1
|
The Company w ill reimburse to you (or as the case may be procure the reimbursement of) all expenses wholly, properly and necessarily incurred by you in the performance of the Duties subject to production within 30 days of the expense being incurred of such receipts or other evidence of expenditure as the Company may reasonably require in accordance with the Company's policy on expenses in force from time to time.
|
7.2
|
If you are provided with any credit or charge card by the Company, you must take good care of it and use it solely for expenses incurred by you in carrying out the Duties and in accordance with any applicable Company policy. The loss of any such card must be reported immediately to the Company and it must be returned to the Company immediately upon request.
|
8.
|
Salary
|
8.1
|
You will be paid a salary of £150,000 per annum, subject to deduction of such tax and national insurance as the Company is required by law to deduct and which is inclusive of any fees you are entitled to as a director of the Company and/or any Group Company.
|
8.2
|
Your salary will accrue from day to day and is payable in equal monthly instalments in arrears each month, directly into a bank or building society account nominated by you.
|
8.3
|
Your salary will be reviewed by the Company from time to time at least annually, save where you are working under notice of termination. There is no obligation on the Company to increase your salary. Any increase awarded will be effective from the date specified by the Company.
|
8.4
|
The Company may, in its absolute discretion, pay additional remuneration to you, whether by way of bonus or otherwise. Any such payment shall not form part of your salary for the purposes of this clause 8.
|
9.
|
Incentive Compensation Plan (bonus)
|
9.1
|
Subject to Clauses 9.3 and 9.4, you shall be entitled to participate in SVB Financial Group's Senior Management Incentive Compensation Plan ("ICP") details of which will be provided to you separately and for the purposes of which you shall be treated as a Member as defined in that plan. For the avoidance of doubt, to the extent that any provision contained within the ICP is incompatible with English Law the Company retains absolute discretion as to the application of the ICP.
|
9.2
|
Subject to clauses 9.3 and 9.4 below and at the Company's absolute discretion, provided that the Group, the Company, your business unit and you all achieve or exceed revenue and performance targets, it is estimated that you will be entitled to earn a bonus under the ICP of 75% of your base salary (pursuant to Clause 8.1 above) . The Company reserves the right to award a nil bonus.
|
9.3
|
Any bonus awarded to you shall be purely discretionary, shall not form part of your contractual remuneration under this Agreement and shall not be pensionable. The making of an award shall not oblige the Company to make any subsequent bonus awards.
|
9.4
|
Notwithstanding clauses 9.1 and 9.2 you shall have no right to be awarded or where an award has been made, paid a bonus (pro rata or otherwise) if:
|
(a)
|
you are subject to any capability and/or disciplinary procedures; and/or
|
(b)
|
your employment has terminated (whether lawfully or unlawfully) or you are under notice of termination (whether given by you or the Company).
|
10.1
|
Subject to clause 10.2, the Company shall award you a Signing Bonus of £35,000, subject to deduction of such tax and national insurance as the Company is required by law to deduct, which will be paid to you as soon as practicable after you commence employment. This bonus shall not form part of your contractual remuneration under this Agreement and shall not be pensionable.
|
10.2
|
You agree to repay the Signing Bonus paid pursuant to clause 10.1 if within a year of payment your employment has terminated (whether lawfully or unlawfully) or you are under notice of termination (whether given by you or the Company) other than by reason of redundancy.
|
11.l
|
If
your employment is terminated by the Company by reason of redundancy you are entitled to receive, subject to deduction of such tax and national insurance as the Company is required by law to deduct, 4 weeks of your annual base salary per year of service, subject to this amount being a minimum of 6 months annual base salary and a maximum of 8 months annual base salary. For the avoidance of doubt, this figure shall be reduced by an amount equal to any period of your notice that you refused to work or
|
13.
|
Other Benefits
|
13.1
|
You shall be eligible to participate in the Company's medical plan. Participation and entitlement to benefits under the Company's medical plan is subject to:
|
(a)
|
the terms of the relevant plan as amended from time to time;
|
(b)
|
the rules or policies as amended from time to time of the relevant provider;
|
(c)
|
acceptance by the relevant provider; and
|
(d)
|
satisfaction of the normal underwriting requirements of the relevant provider and the premium being at a rate which the Company considers reasonable .
|
13.2
|
Any other benefit provided to you shall unless otherwise agreed in writing be at the discretion of the Company who may, at any time, withdraw or vary the terms of such benefit as it sees fit.
|
14.
|
Share Option and Long Term Incentive Plan
|
14.1
|
The terms of the Employment shall not be affected in anyway by your participation or entitlement to participate in any long term incentive plan or share option scheme. Such schemes and/or plans shall not form part of the terms of the Employment (express or implied).
|
14.2
|
In
calculating any payment, compensation or damages on the termination of the Employment for whatever reason (whether lawful or unlawful) which might otherwise be payable to you, no account shall be taken of your participation in any such schemes and/or plans referred to in clause 14.1 or any impact upon participation such termination may have.
|
14.3
|
This clause 14 does not in anyway indicate any right or entitlement to participate in any such schemes and/or plans.
|
15.
|
Holidays
|
15.1
|
In addition to the usual public or bank holidays in England and Wales, you are entitled to 25 working days' paid holiday in each Holiday Year (pro rated to the nearest whole day for the Holiday Year in which the Employment commences and terminates).
|
15.2
|
Holiday must be taken at such times as are agreed with the Company. On giving at least 5 days notice, the Company may require you to take any accrued but untaken
|
15.3
|
You may not without consent of the Company carry forward any part of your holiday entitlement to a subsequent Holiday Year. Save as provided for in clause 15.4 no payment in lieu will be made of any unused holiday entitlement in
any Holiday Year.
|
15.4
|
On termination of the Employment :
|
(a)
|
you will be entitled to pay in
lieu of any accrued but untaken holiday entitlement; and/or
|
(b)
|
you will be required to repay to the Company any salary received for holiday taken in excess of your accrued entitlement (which you agree may be deducted from any payments, including salary, due to you from the Company).
|
16.
|
Sickness Absence
|
16.1
|
If you are unable to perform the Duties due to sickness or injury, you shall report this fact as soon as possible on the first working day of incapacity to the Company indicating so far as practicable the date on which you expect to return to work. You shall keep the Company informed and provide it with such certification of your condition as
it
may require.
|
16.2
|
If at any time in the reasonable opinion of the Company you are unable to perform all or part of the Duties due to sickness or injury, you will at the request and expense of the Company:
|
(a)
|
consent to an examination by a doctor nominated by the Company; and
|
(b)
|
authorise the doctor to disclose to and discuss with the Company, his or her report (including copies) of the examination and your fitness for work.
|
16.3
|
The Company is entitled to rely on the reasonable opinion of any doctor engaged to examine you under clause 16.2 as to your fitness for work. Where such doctor considers you to be unfit for work, you are not entitled to receive any payment in excess of any sick pay entitlement pursuant to clause 17.
|
16.4
|
If
you are incapable of performing the Duties due to sickness or injury for a period or periods aggregating at least 3 months in any period of 12 months the Company may, by not less than 3 months' prior written notice given at any time whilst such incapacity continues, terminate the Employment. Upon termination of the Employment under this sub-clause you shall cease to be entitled to any payment under clause 17.1 or any other provision of this Agreement.
|
17.
|
Sick Pay
|
17.1
|
Subject to compliance with clause 16 and clauses 17.3 and 17.4 below, you will be entitled to your salary (subject to clause 8.1) pursuant to the standard SVB Financial Group policy for such illness/sickness. A copy of this policy is available from Human Resources. Any payment made to you under this clause is inclusive of your entitlement (if any) to statutory sick pay (for which your qualifying days are Monday to Friday).
|
17.2
|
For the purpose of clauses 17.1 and 17.4 any delay by the Company in terminating the provision of sick pay and/or any other remuneration and/or benefits will not constitute a waiver of its right to do so.
|
17.3
|
If your sickness or injury is or appears to be caused by the negligence, nuisance or breach of any statutory duty of a third party, in respect of which damages are or may be recoverable you shall:
|
(a)
|
immediately notify the Company of all relevant facts and of any claim, compromise, settlement or judgement made or awarded in connection with it and all relevant particulars that the Company may reasonably require; and
|
(b)
|
if required by the Company, refund to the Company that part of any damages or compensation recovered by you relating to your loss of earnings for the period of sickness or injury as the Company reasonably determines provided that the amount to be refunded shall not exceed the total amount paid to you by the Company in respect of the period of sickness or injury.
|
17.4
|
This clause 17 is without prejudice and does not limit in anyway the Company's right to terminate your employment pursuant to this Agreement.
|
18.
|
Obligations during Employment
|
18.1
|
Save with the prior written permission of the Company, you shall not during your employment (whether during or outside normal working hours):
|
(c)
|
hold any Material Interest in any person which:
|
(i)
|
is or shall be wholly or partly in competition with any of the Businesses;
|
(ii)
|
impairs or might reasonably be thought by the Company to impair your ability to act at all times in the best interests of the Company and/or any Group Company; and/or
|
(iii)
|
requires or might reasonably be thought by the Company to require you to make use of or disclose any Confidential Information to further your interests in that person;
|
(d)
|
take any preparatory steps to become engaged or interested in any capacity whatsoever in any business or venture which is in or is intended to enter into competition with any of the Businesses;
|
(e)
|
carry out any public or private work other than the Duties (whether for profit or otherwise);
|
(d)
|
directly or indirectly receive in respect of any goods or services sold or purchased or any other business transacted (whether or not by you) by or on behalf of the Company and/or any Group Company any discount, rebate, commission or other inducement (whether in cash or in kind) which is not authorised by the relevant Company and/or Group Company rules or guidelines. You will account to the Company for the value of any such inducement.
|
18.2
|
You agree that during the Employment, you are and shall always be subject to the provisions of the SVB Financial Group Code of Conduct and any and all other employment or other policies of SVB Financial Group, Silicon Valley Bancshares, SVB Financial Group UK Limited, and all of their respective affiliates and subsidiaries. A copy of the Code of Conduct can be obtained from the SVB intranet site.
|
18.3
|
You shall observe relevant rules of law, requirements , recommendations, rules and regulations (as amended from time to time) of the London Stock Exchange Plc or any other Recognised Exchange, the Model Code and/or the FSMA and the Company guidelines/codes relating to dealings in shares, debentures or other securities of the Company and/or any Group Company. In relation to overseas dealing you shall observe all laws and all regulations of the stock exchange, market or dealing system in which country or state such dealings take place.
|
18.4
|
You shall not (and shall procure so far as you are able that your spouse and children shall not) deal or become or cease to be interested (within the meaning of Part I, Schedule 13, Companies Act 1985) in any securities of the Company without complying with any Company rules or guidelines from time to time relating to securities transactions.
|
19.
|
Confidential Information
|
19.l
|
You shall not either during the Employment or at any time after its termination (howsoever arising), directly or indirectly, use, disclose or communicate to any person whatsoever and, shall use your best endeavours to prevent the publication or disclosure of, any Confidential Information.
|
19.2
|
Clause 19.1 does not apply to :
|
(a)
|
any use or disclosure in the proper performance of the Duties, as authorised by the Company and/or as required by law;
|
(b)
|
any information which is already in or comes into the public domain other than through your unauthorised disclosure; and/or
|
(c)
|
any protected disclosure within the meaning of s43A Employment Rights Act 1996 provided, where at the relevant time you are employed by the Company,
|
20.
|
Intellectual Property
|
20.l
|
You shall promptly disclose to the Company full details of any Invention and/or Works (including, without limitation, any and all computer programs, photographs, plans, records, drawings and models) which you (whether alone or with any other person) make, conceive, create, develop, write, devise or acquire at any time during the Employment and which relates or could relate directly or indirectly to the Businesses. You shall treat all Inventions and Works as Confidential Information of the Company and/or any Group Company.
|
20.2
|
To the extent not already vested in the Company and/or any Group Company by operation of law, you:
|
(a)
|
shall hold any Invention and/or Work on trust for the Company and/or any Group Company until any rights to such Invention and/or Work have been fully and absolutely vested in the Company in accordance with the remaining provisions of this clause 20;
|
(b)
|
shall subject to clauses 39-43 of the Patents Act 1977 assign to the Company all patents and rights to apply for patents or other appropriate forms of protection in each Invention throughout the world;
|
(c)
|
hereby assign by way of present and future assignment all copyright, design rights and other proprietary intellectual property rights (if any) for their full terms throughout the world in respect of the Works.
|
(d)
|
shall execute any document necessary to assign to the Company any rights referred to under this clause 20 and at the request and expense of the Company, do all things necessary or desirable (including entering into any agreement that the Company reasonably requires) to vest such rights in the Company including without limitation applying and joining in with the Company in applying for any protection for or registration of any such rights to enable the Company and/or any Group Company and/or its or their nominee to obtain the full benefit and/or substantiate the rights of the Company and/or any Group Company under paragraphs (a), (b) and (c).
|
20.3
|
You acknowledge and agree that the patenting and exploitation of any Invention shall be at the sole discretion of the Company.
|
20.4
|
You irrevocably and unconditionally waive in favour of the Company and/or any Group Company any and all moral rights conferred on you by Chapter IV , Part I, Copyright Designs and Patents Act 1988 and any other moral rights provided for under the laws now or in future in force in any part of the world for any Work the rights in
which are vested in the Company whether by clause 20.2 or otherwise.
|
21.l
|
During any period of notice to terminate the Employment (whether given by you or the Company), or if you purport to terminate the Employment in breach of this Agreement, the Company may for all or part of that period, in its absolute discretion (and notwithstanding any other provisions of this Agreement) require you:
|
(a)
|
to perform only such of the Duties as it may allocate to you or such other projects or duties as may be required (whether or not they fall within clause 4);
|
(b)
|
not to perform any of the Duties;
|
(c)
|
not to have any contact (other than purely social contact) or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor, shareholder, adviser or other business contact of the Company and/or any Group Company save as determined by the Company;
|
(d)
|
to disclose to the Company any attempted contact (other than purely social contact) with any person with whom you have been required not to have any contact pursuant to this clause;
|
(e)
|
to take any accrued holiday entitlement (in accordance with clause 15.2);
|
(f)
|
not to enter any premises of the Company and/or any Group Company nor to visit the premises of any suppliers and/or customers of the Company and/or any Group Company;
|
(g)
|
to return as requested by the Company any mobile telephone handset, SIM card, laptop computer and/or any other Company and/or Group Company property, including Confidential Information, the Company may require; and/or
|
(h)
|
to resign immediately from any offices you hold in the Company and/or any Group Company.
|
21.2
|
You agree that any action taken on the part of the Company and/or any Group Company pursuant to clause 21.l shall not constitute a breach of this Agreement of any kind whatsoever nor will you have any claim against the Company and/or any Group Company in respect of such action.
|
21.3
|
Without prejudice to any other terms of this Agreement and save as expressly agreed otherwise in clause 21.1 above, during any period in which action is taken on the part of the Company and/or any Group Company pursuant to clause 21.1:
|
(a)
|
you shall continue to be entitled to your salary and contractual benefits save that, should you work for any other person or on your own account and fail to be available for work at any time, your right to salary and contractual benefits in respect of such period of non-availability shall be forfeit, notwithstanding any other provision of this Agreement;
|
(b)
|
you shall owe a duty of utmost good faith to the Company and/or any Group Company; and
|
(c)
|
you shall remain an employee of the Company and be bound by the terms and conditions of this Agreement. In particular, you agree that you will not work for any other person or on your own account and save, during any periods of holiday taken under this Agreement, you shall remain readily contactable and available to work for the Company and/or any Group Company.
|
22.
|
Payment in lieu of notice
|
22.1
|
The Company may in its absolute discretion, terminate the Employment at any time with immediate effect and pay you a sum equal to the basic salary you would have received during your notice period pursuant to clause 8.1 (or, if notice has already been given, during the remainder of the notice period) less income tax and National Insurance contributions
("Payment in Lieu")
.
The Payment in Lieu shall not include any payment in respect of:
|
(a)
|
any bonus or commission payments that might otherwise have been paid to you during the period for which the Payment in Lieu is made;
|
(b)
|
benefits which you would have been entitled to receive during the period for which the Payment in Lieu is made; or
|
(c)
|
any holiday entitlement that would have accrued to you during the period for which the Payment in Lieu is made.
|
22.2
|
Subject to clause 22.3, the Company will make any payment pursuant to clause 22.1, at its absolute discretion within 14 days of the termination of your employment.
|
22.3
|
You shall have no right to receive a Payment in Lieu unless the Company has exercised its discretion in clause 22.1. Nothing in this clause 22 shall prevent the Company from terminating your Employment in breach.
|
23.
|
Summary Termination
|
23.1
|
The Company may terminate the Employment at any time in writing, without notice or pay in lieu of notice, and with no liability to make any further payment to you, save for the amounts accrued due to the Termination Date, if:
|
(a)
|
you commit any act of gross misconduct;
|
(b)
|
your conduct (whether or not it occurs during or in the context of the Employment) is such that it may in the reasonable opinion of the Company bring the Company and/or any Group Company into disrepute and/or is calculated or likely prejudicially to affect the interests of the Company and/or any Group Company;
|
(c)
|
you are negligent and/or incompetent in the reasonable opinion of the Company in the performance of your Duties;
|
(d)
|
you commit any serious or repeated breach of this Agreement;
|
(e)
|
you are convicted of any criminal offence (other than an offence under the road traffic legislation in the United Kingdom or abroad for which you are not sentenced to any term of imprisonment, whether immediate or suspended);
|
(f)
|
you commit any act of fraud or dishonesty relating to the Company and/or any Group Company, any of its or their employees, customers or otherwise;
|
(g)
|
you become of unsound mind or a patient for the purposes of any statute relating to mental health so that in the opinion of the Company you are unable to perform your Duties;
|
(h)
|
a bankruptcy petition is presented against you or you become bankrupt or an interim order is made in respect of you pursuant to section 252 of the Insolvency Act 1986 or you make any arrangement or composition with your creditors generally (including an Individual Voluntary Arrangement) or have a County Court administration order made against you under the County Court Act 1984.
|
23.2
|
The rights of the Company under clause 23.1 are without prejudice to any other rights that it may have at law to terminate the Employment or accept any breach of this Agreement by you as having brought the Agreement to an end and any delay by the Company in exercising its rights under clause 23.1 shall not constitute a waiver of such rights.
|
24.
|
1 Subject to clause 24.2 below, your employment shall automatically terminate when you reach the age of 65.
|
24.2
|
You may request to work beyond the normal retirement date. Please refer to the Company's HR Department for further details and the procedure and timescales for exercising this right.
|
25.
|
Reconstruction and Amalgamation
|
26.
|
Obligations after Employment
|
27.
|
Property
|
(a)
|
return to the Company and/or any Group Company or irretrievably destroy or delete:
|
(i)
|
any documents, drawings, designs, computer files or software, visual or audio tapes or other materials containing information (including, without limitation, Confidential Information) and/or any copies or extracts of the same relating to the Businesses; and
|
(ii)
|
any other property of the Company and/or any Group Company
|
(b)
|
inform the Company of all passwords, pass codes, pin n umbers and any other similar information used by yourself in relation to any information technology systems, vehicles, rooms and/or any other secured property of the Company and/or any Group Company.
|
28.
|
Resignation from Appointments
|
29.
|
Suspension
|
30.
|
Disciplinary and Dismissal Rules
|
30.1
|
You are subject to the Company's disciplinary rules and procedures, in force from time to time a copy of which is available from the Company's HR Department and such other procedures of this nature as may from time to time be adopted. Application of any such procedure is at the Company's discretion and is not a contractual entitlement.
|
30.2
|
If you are dissatisfied with any disciplinary decision to dismiss you, you should refer such dissatisfaction in writing to the Company's HR Department, who will proceed in accordance with the appeal procedure set out in the appropriate Company procedure.
|
31.
|
Grievance
|
32.
|
Data Protection
|
32.1
|
The Company and any Group Company shall process your personal data (including, where necessary, sensitive personal data, such terms being defined in the Data Protection Act 1998) in their paper-based and computerised systems. You consent to the processing of such data both inside and, where necessary, outside the European Economic Area for the purposes of:
|
(a)
|
salary, benefits and pensions administration and employee management;
|
(b)
|
health administration and for the purposes of health insurance/benefits;
|
(c)
|
training and appraisal, including performance records and disciplinary records;
|
(d)
|
equal opportunities monitoring;
|
(e)
|
any potential change of control of the Company and/or Group Company, or any potential transfer of employment under the Transfer of Undertakings (Protection of Employment) Regulations 2006. In such circumstances, disclosure may include disclosure to the potential purchaser or investor and their advisors;
|
(f)
|
promoting or marketing of the Company and/or any Group Company and/or its or their products or services;
|
(h)
|
any other reasonable purposes in connection with your employment about which you shall be notified from time to time.
|
32.2
|
You acknowledge and accept that in order to fulfil the purposes set out above, it may be necessary to pass your personal data (or sensitive personal data, as appropriate) to regulatory bodies, government agencies and other third parties as required by law or for administration purposes.
|
32.3
|
You acknowledge and accept that the Company and/or any Group Company may monitor electronic correspondence (including email , voice and text messages) which you receive at work and/or on Company systems and/or property provided to you by the Company and/or any Group Company for the purposes of your work in order to ensure the integrity of its information technology or to prevent or detect criminal behaviour or behaviour which contravenes employment legislation and/or other Company and/or Group Company policies. Further details about the Company's
|
32.4
|
You agree to use all reasonable endeavours to keep the Company informed of any changes to your personal data or sensitive personal data and to comply with all relevant data protection legislation.
|
33.
|
Warranty
|
33.1
|
You warrant that you are not bound by nor subject to any court order, arrangement, obligation (express or implied), restriction or undertaking (contractual or otherwise) which prohibits or restricts you from entering into this Agreement or performing the Duties.
|
33.2
|
You undertake to indemnify the Company and/or any Group Company against any claims, costs, damages, liabilities and/or expenses which the Company and/or any Group Company may incur as a result of any claim that you are in breach of any order, arrangement, obligation, restriction or undertaking referred to in clause 33.1.
|
34.
|
Deductions
|
36.
|
Collective Agreements
|
37.
|
Entire Agreement
|
38.
|
Third Parties
|
39.
|
Assurances
|
40.
|
Releases and waivers
|
40.1
|
The Company may, in whole or in part, release, compound, compromise, waive or postpone, in its absolute discretion, any liability owed to it or right granted to it in this Agreement by you without in any way prejudicing or affecting its rights in respect of any part of that liability or any other liability or right not so released, compounded, compromised, waived or postponed.
|
40.2
|
No single or partial exercise, or failure or delay in exercising any right, power or remedy by the Company shall constitute a waiver by it of, or impair or preclude any further exercise of, that or any right, power or remedy arising under this Agreement or otherwise.
|
41.
|
Notices
|
41.1
|
Any notice to a party under this Agreement shall be in writing signed by or on behalf of the party giving it and shall, unless delivered to a party personally, be hand delivered, or sent by prepaid first class post or facsimile, with a confirmatory copy sent by prepaid first class post to, in your case, your last known residential address or, in the case of the Company, the Company Secretary at the Company's registered office.
|
41.2
|
A notice shall be deemed to have been served:
|
(a)
|
at the time of delivery if delivered personally to a party or to the specified address;
|
(b)
|
on the second working day after posting by first class prepaid post; or
|
(c)
|
2 hours after transmission if served by facsimile on a business day prior to 3pm or in any other case at l 0 am on the business day after the date of despatch.
|
40.
|
Governing law and jurisdiction
|
42.1
|
This Agreement shall be governed by and construed in accordance with English law.
|
42.2
|
Each of the parties irrevocably submits for all purposes in connection with this Agreement to the exclusive jurisdiction of the English courts.
|
1.1
|
In this Schedule, unless the context otherwise requires, the following additional definitions shall apply (in addition to the definitions contained in the Agreement to which this Schedule is annexed and of which it forms a part):
|
2.
|
Obligations after employment
|
2.1
|
You shall not for a period of 3 months less any Garden Leave Period hold a Material Interest in a business or venture which:
|
(a)
|
is or is about to be in competition with the Business or any part thereof; or
|
(b)
|
is likely to result in the intentional or unintentional disclosure or use of Confidential Information by you in order for you to properly discharge your duties to or further your interest in that business or venture.
|
2.2
|
The provisions of clause 2.1 shall not operate so as to prevent you from being engaged, concerned or interested in any business or venture in so far as your work for that business or venture shall relate solely to services or activities with which the Duties were not concerned to a material extent or in relation to which you were not responsible and in relation to which you held no Confidential Information during the Protected Period.
|
2.3
|
You shall not for the Restriction Period in respect of any Goods and/or Services:
|
(a)
|
deal with or supply any Customer;
|
(b)
|
deal with or supply any Prospective Customer; or
|
(c)
|
offer employment or any contract for services to or employ or engage any Key Employee.
|
2.4
|
You shall not for the Restriction Period in respect of any Goods and/or Services:
|
(a)
|
solicit, facilitate the solicitation of or canvass the custom or business of any Customer;
|
(b)
|
solicit, facilitate the solicitation of or canvass the custom or business of any Prospective Customer; or
|
(c)
|
solicit or entice or endeavour to solicit or entice any Key Employee to leave his employment with or cease his directorship or consultancy with the Company or any Group Company, whether or not that person would breach any obligations owed to the Company or any relevant Group Company by so doing.
|
2.5
|
You shall not for the Restriction Period
|
(a)
|
deal with or accept the supply of any goods or services from any Supplier where such supply is likely to be the detriment of any Group Company whether by causing the Supplier to reduce or alter the terms or quantity of supply to the Group Company or where the value of the Company's arrangement with the Supplier is diminished; or
|
(b)
|
solicit, facilitate the solicitation of or canvass the supply of any goods or services from any Supplier where such supply is likely to be the detriment of any Group Company whether by causing the Supplier to reduce or alter the terms or quantity of supply to the Group Company or where the value of the Group Company's arrangement with the Supplier is diminished;
|
2.6
|
If, at any time during the Employment, two or more Key Employees leave the employment of the Company or any Group Company to provide Goods and/or Services for the same business or venture, you shall not, at any time during the 6 months following the last date on which any of those Key Employees was employed by the Company or any Group Company, be employed or engaged in any way with that business or venture in respect of any Goods and/or Services.
|
2.7
|
You shall not at any time after the Termination Date:
|
(a)
|
induce or seek to induce by any means involving the disclosure or use of Confidential Information any Customer or Supplier to cease dealing with the Company or any Group Company or to restrict or vary the terms upon which it deals with the relevant Group Company;
|
(b)
|
be held out or represented by you or any other person as being in any way connected with or interested in the Company or any Group Company; or
|
(c)
|
disclose to any person or make use of any Confidential Information (except as required by law).
|
3.1
|
You have given the undertakings in this Schedule to the Company as trustee for itself and each Group Company in the business of which you have been concerned or involved to any material extent during the Employment or which benefits from each undertaking. You agree that each such Group Company may enforce the benefit of each such undertaking.
|
3.2
|
You shall at the request and expense of the Company enter into direct undertakings with any such Group Company which correspond to the undertakings in this Schedule.
|
3.3
|
You agree that if you have material business dealings in other foreign jurisdictions on behalf of any Group Company, you will enter into undertakings providing the same level of protection for each such Group Company with such modifications (if any) as are necessary to render such undertakings enforceable in those jurisdictions.
|
3.4
|
You acknowledge that you have had the opportunity to take independent legal advice in relation to the undertakings contained in this Schedule.
|
3.5
|
The obligations imposed on you by this Schedule extend to you acting not only on your own account but also on behalf of any other firm, company or other person and shall apply whether you act directly or indirectly.
|
3.6
|
You warrant that you believe the covenants contained within this Schedule to be reasonable as between the parties and that you have no present intention of ever arguing that the restraints are unreasonable or otherwise unenforceable.
|
Subsidiary
|
Jurisdiction of Incorporation
or Organization
|
Capital Partners III, L.P.
|
Delaware
|
CP Secondaries Fund, L.P.
|
Delaware
|
GHVL, LP
|
California
|
Gold Hill Venture Lending 03, LP
|
California
|
Gold Hill Venture Lending 03-A, LP
|
California
|
Gold Hill Venture Lending 03-B, LP
|
California
|
Gold Hill Venture Lending 03-C, Inc.
|
Delaware
|
Gold Hill Venture Lending 03-C, LP
|
California
|
Gold Hill Venture Lending Partners 03, LLC
|
California
|
Partners for Growth, L.P.
|
Delaware
|
Qualified Investors Fund III, LLC
|
Delaware
|
Silicon Valley BancVentures, Inc.
|
California
|
Silicon Valley BancVentures, L.P.
|
California
|
Silicon Valley Bank
|
California
|
Strategic Investors Fund V, L.P.
|
Delaware
|
Strategic Investors Fund V-A, L.P
|
Delaware
|
Strategic Investors Fund V-A Opportunity, L.P
|
Delaware
|
Strategic Investors Fund V-B, L.P.
|
Delaware
|
Strategic Investors Fund VI, L.P.
|
Delaware
|
Strategic Investors Fund VI-A, L.P.
|
Delaware
|
Strategic Investors Fund VII, L.P.
|
Delaware
|
Strategic Investors Fund VII-A, L.P.
|
Delaware
|
SVB Analytics, Inc.
|
Delaware
|
SVB Asset Management
|
California
|
SVB Business Partners (Beijing) Co. Ltd.
|
China
|
SVB Business Partners (Shanghai) Co. Ltd.
|
China
|
SVB Capital-NT Growth Partners, L.P.
|
Delaware
|
SVB Capital Partners II, LLC
|
Delaware
|
SVB Capital Partners II, L.P.
|
Delaware
|
SVB Capital Partners III, LLC
|
Delaware
|
SVB Capital Preferred Return Fund, L.P.
|
Delaware
|
SVB Capital Shanghai Yangpu Venture Capital Fund, L.P.
|
China
|
SVB Capital Trust II
|
Delaware
|
SVB Financial Group UK Limited
|
United Kingdom
|
SVB GG Holdings, LLC
|
Delaware
|
SVB Global Financial, Inc.
|
Delaware
|
SVB Growth Investors, LLC
|
Delaware
|
SVBIF Management
|
Mauritius
|
SVB India Advisors, Pvt. Ltd.
|
India
|
SVB India Finance Private Limited
|
India
|
SVB International Finance, Inc
|
United States
|
SVB Israel Advisors, Ltd.
|
Israel
|
SVB Qualified Investors Fund, LLC
|
California
|
SVB Qualified Investors Fund II, LLC
|
Delaware
|
SVB Securities
|
California
|
SVB Strategic Investors Fund, L.P.
|
California
|
SVB Strategic Investors Fund II, L.P.
|
Delaware
|
SVB Strategic Investors Fund III, L.P.
|
Delaware
|
SVB Strategic Investors Fund IV, L.P.
|
Delaware
|
SVB Strategic Investors II, LLC
|
California
|
SVB Strategic Investors II, LLC
|
Delaware
|
SVB Strategic Investors III, LLC
|
Delaware
|
SVB Strategic Investors IV, LLC
|
Delaware
|
SVB Strategic Investors V, LLC
|
Delaware
|
SVB Strategic Investors VI, LLC
|
Delaware
|
SVB Strategic Investors VII, LLC
|
Delaware
|
SVB Venture Capital Investment Management (Shanghai) Co. Limited
|
China
|
SVB Wealth Advisory, Inc.
|
Delaware
|
Venture Investment Managers, L.P.
|
Delaware
|
1.
|
I have reviewed this annual report on Form 10-K of SVB Financial Group;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 26, 2015
|
|
/s/ GREG BECKER
|
|
|
Greg Becker
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this annual report on Form 10-K of SVB Financial Group;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 26, 2015
|
|
/s/ MICHAEL DESCHENEAUX
|
|
|
Michael Descheneaux
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
Date: February 26, 2015
|
|
/s/ GREG BECKER
|
|
|
Greg Becker
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: February 26, 2015
|
|
/s/ MICHAEL DESCHENEAUX
|
|
|
Michael Descheneaux
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|