x
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QUARTERLY 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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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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(Dollars in thousands, except par value and share data)
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June 30,
2016 |
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December 31,
2015 |
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Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
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$
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1,854,457
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|
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$
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1,503,257
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Available-for-sale securities, at fair value (cost of $12,853,624 and $16,375,941, respectively)
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13,058,617
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16,380,748
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Held-to-maturity securities, at cost (fair value of $8,322,048 and $8,758,622, respectively)
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8,200,443
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8,790,963
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Non-marketable and other securities
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664,054
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674,946
|
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Total investment securities
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21,923,114
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25,846,657
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Loans, net of unearned income
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18,833,778
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16,742,070
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|
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Allowance for loan losses
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(244,723
|
)
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(217,613
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)
|
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Net loans
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18,589,055
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16,524,457
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Premises and equipment, net of accumulated depreciation and amortization
|
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110,485
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102,625
|
|
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Accrued interest receivable and other assets
|
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655,543
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709,707
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Total assets
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$
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43,132,654
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$
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44,686,703
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Liabilities and total equity
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Liabilities:
|
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|
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Noninterest-bearing demand deposits
|
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$
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30,287,849
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$
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30,867,497
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Interest-bearing deposits
|
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7,308,718
|
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8,275,279
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Total deposits
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37,596,567
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39,142,776
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Short-term borrowings
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503,219
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774,900
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Other liabilities
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602,746
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639,094
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Long-term debt
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796,329
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796,702
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Total liabilities
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39,498,861
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41,353,472
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Commitments and contingencies (Note 12 and Note 15)
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SVBFG stockholders’ equity:
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Preferred stock, $0.001 par value, 20,000,000 shares authorized; no shares issued and outstanding
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—
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—
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Common stock, $0.001 par value, 150,000,000 shares authorized; 52,025,673 shares and 51,610,226 shares outstanding, respectively
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52
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52
|
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Additional paid-in capital
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1,209,821
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1,189,032
|
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Retained earnings
|
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2,165,784
|
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1,993,646
|
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Accumulated other comprehensive income
|
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129,921
|
|
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15,404
|
|
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Total SVBFG stockholders’ equity
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3,505,578
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3,198,134
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Noncontrolling interests
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128,215
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135,097
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Total equity
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3,633,793
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3,333,231
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Total liabilities and total equity
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$
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43,132,654
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$
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44,686,703
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Three months ended June 30,
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Six months ended June 30,
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(Dollars in thousands, except per share amounts)
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2016
|
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2015
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2016
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2015
|
||||||||
Interest income:
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|
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Loans
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$
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205,287
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$
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167,252
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$
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403,229
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$
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332,753
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Investment securities:
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Taxable
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86,603
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84,613
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177,653
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165,887
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Non-taxable
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575
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741
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1,171
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1,513
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Federal funds sold, securities purchased under agreements to resell and other short-term investment securities
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1,527
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1,320
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3,597
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2,589
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|
||||
Total interest income
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293,992
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253,926
|
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585,650
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502,742
|
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Interest expense:
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Deposits
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1,261
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1,182
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2,449
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3,125
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Borrowings
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9,395
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8,973
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18,444
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16,921
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Total interest expense
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10,656
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10,155
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20,893
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20,046
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Net interest income
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283,336
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243,771
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564,757
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482,696
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Provision for loan losses
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36,333
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26,513
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69,674
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32,965
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|
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Net interest income after provision for loan losses
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247,003
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217,258
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495,083
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449,731
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Noninterest income:
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Gains on investment securities, net
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23,270
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24,975
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18,586
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58,238
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|
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Gains on derivative instruments, net
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8,798
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16,317
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7,103
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56,046
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Foreign exchange fees
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24,088
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22,364
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51,054
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40,042
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Credit card fees
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15,424
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14,215
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|
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30,931
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|
|
26,305
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|
||||
Deposit service charges
|
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13,114
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|
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11,301
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|
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25,786
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|
|
22,037
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|
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Client investment fees
|
|
8,012
|
|
|
5,264
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|
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16,007
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|
|
9,746
|
|
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Lending related fees
|
|
7,802
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|
|
8,163
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|
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15,615
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|
|
16,185
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|
||||
Letters of credit and standby letters of credit fees
|
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6,014
|
|
|
4,772
|
|
|
11,603
|
|
|
9,974
|
|
||||
Other
|
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6,254
|
|
|
18,916
|
|
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22,225
|
|
|
11,238
|
|
||||
Total noninterest income
|
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112,776
|
|
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126,287
|
|
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198,910
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|
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249,811
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|
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Noninterest expense:
|
|
|
|
|
|
|
|
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Compensation and benefits
|
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115,580
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124,915
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237,842
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240,685
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|
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Professional services
|
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25,516
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18,950
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|
|
44,516
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|
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37,697
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|
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Premises and equipment
|
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16,586
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|
|
11,787
|
|
|
31,570
|
|
|
24,444
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|
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Business development and travel
|
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9,327
|
|
|
9,764
|
|
|
21,573
|
|
|
20,876
|
|
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Net occupancy
|
|
9,359
|
|
|
8,149
|
|
|
19,394
|
|
|
15,462
|
|
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FDIC and state assessments
|
|
6,892
|
|
|
5,962
|
|
|
13,819
|
|
|
11,751
|
|
||||
Correspondent bank fees
|
|
2,713
|
|
|
3,337
|
|
|
6,365
|
|
|
6,705
|
|
||||
Provision for (reduction of) unfunded credit commitments
|
|
413
|
|
|
(3,061
|
)
|
|
547
|
|
|
(798
|
)
|
||||
Other
|
|
13,966
|
|
|
14,309
|
|
|
28,759
|
|
|
27,831
|
|
||||
Total noninterest expense
|
|
200,352
|
|
|
194,112
|
|
|
404,385
|
|
|
384,653
|
|
||||
Income before income tax expense
|
|
159,427
|
|
|
149,433
|
|
|
289,608
|
|
|
314,889
|
|
||||
Income tax expense
|
|
65,047
|
|
|
54,974
|
|
|
118,631
|
|
|
118,040
|
|
||||
Net income before noncontrolling interests
|
|
94,380
|
|
|
94,459
|
|
|
170,977
|
|
|
196,849
|
|
||||
Net (income) loss attributable to noncontrolling interests
|
|
(1,416
|
)
|
|
(8,316
|
)
|
|
1,161
|
|
|
(22,190
|
)
|
||||
Net income available to common stockholders
|
|
$
|
92,964
|
|
|
$
|
86,143
|
|
|
$
|
172,138
|
|
|
$
|
174,659
|
|
Earnings per common share—basic
|
|
$
|
1.79
|
|
|
$
|
1.68
|
|
|
$
|
3.33
|
|
|
$
|
3.42
|
|
Earnings per common share—diluted
|
|
1.78
|
|
|
1.66
|
|
|
3.30
|
|
|
3.37
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income before noncontrolling interests
|
|
$
|
94,380
|
|
|
$
|
94,459
|
|
|
$
|
170,977
|
|
|
$
|
196,849
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Change in cumulative translation (losses) gains:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation (losses) gains
|
|
(1,795
|
)
|
|
529
|
|
|
(2,049
|
)
|
|
2,690
|
|
||||
Related tax benefit (expense)
|
|
731
|
|
|
(321
|
)
|
|
835
|
|
|
(1,141
|
)
|
||||
Change in unrealized gains (losses) on available-for-sale securities:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses)
|
|
40,937
|
|
|
(45,541
|
)
|
|
211,768
|
|
|
41,566
|
|
||||
Related tax (expense) benefits
|
|
(16,686
|
)
|
|
18,191
|
|
|
(86,289
|
)
|
|
(17,024
|
)
|
||||
Reclassification adjustment for gains included in net income
|
|
(12,328
|
)
|
|
(141
|
)
|
|
(11,582
|
)
|
|
(2,737
|
)
|
||||
Related tax expense
|
|
5,017
|
|
|
57
|
|
|
4,713
|
|
|
1,105
|
|
||||
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity
|
|
(2,250
|
)
|
|
(2,604
|
)
|
|
(4,817
|
)
|
|
(5,432
|
)
|
||||
Related tax benefit
|
|
905
|
|
|
1,047
|
|
|
1,938
|
|
|
2,186
|
|
||||
Other comprehensive income (loss), net of tax
|
|
14,531
|
|
|
(28,783
|
)
|
|
114,517
|
|
|
21,213
|
|
||||
Comprehensive income
|
|
108,911
|
|
|
65,676
|
|
|
285,494
|
|
|
218,062
|
|
||||
Comprehensive (income) loss attributable to noncontrolling interests
|
|
(1,416
|
)
|
|
(8,316
|
)
|
|
1,161
|
|
|
(22,190
|
)
|
||||
Comprehensive income attributable to SVBFG
|
|
$
|
107,495
|
|
|
$
|
57,360
|
|
|
$
|
286,655
|
|
|
$
|
195,872
|
|
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Retained Earnings
|
|
Accumulated
Other Comprehensive Income |
|
Total SVBFG
Stockholders’ Equity |
|
Noncontrolling Interests
|
|
Total Equity
|
|||||||||||||||||
(Dollars in thousands)
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2014
|
|
50,924,925
|
|
|
$
|
51
|
|
|
$
|
1,120,350
|
|
|
$
|
1,649,967
|
|
|
$
|
42,704
|
|
|
$
|
2,813,072
|
|
|
$
|
1,238,662
|
|
|
$
|
4,051,734
|
|
Common stock issued under employee benefit plans, net of restricted stock cancellations
|
|
509,146
|
|
|
—
|
|
|
13,582
|
|
|
—
|
|
|
—
|
|
|
13,582
|
|
|
—
|
|
|
13,582
|
|
|||||||
Common stock issued under ESOP
|
|
27,425
|
|
|
—
|
|
|
3,512
|
|
|
—
|
|
|
—
|
|
|
3,512
|
|
|
—
|
|
|
3,512
|
|
|||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other
|
|
—
|
|
|
—
|
|
|
10,157
|
|
|
—
|
|
|
—
|
|
|
10,157
|
|
|
—
|
|
|
10,157
|
|
|||||||
Deconsolidation of noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,069,437
|
)
|
|
(1,069,437
|
)
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174,659
|
|
|
—
|
|
|
174,659
|
|
|
22,190
|
|
|
196,849
|
|
|||||||
Capital calls and distributions, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,045
|
)
|
|
(53,045
|
)
|
|||||||
Net change in unrealized gains and losses on available-for-sale securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,910
|
|
|
22,910
|
|
|
—
|
|
|
22,910
|
|
|||||||
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,246
|
)
|
|
(3,246
|
)
|
|
—
|
|
|
(3,246
|
)
|
|||||||
Foreign currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,549
|
|
|
1,549
|
|
|
—
|
|
|
1,549
|
|
|||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
14,907
|
|
|
—
|
|
|
—
|
|
|
14,907
|
|
|
—
|
|
|
14,907
|
|
|||||||
Balance at June 30, 2015
|
|
51,461,496
|
|
|
$
|
51
|
|
|
$
|
1,162,508
|
|
|
$
|
1,824,626
|
|
|
$
|
63,917
|
|
|
$
|
3,051,102
|
|
|
$
|
138,370
|
|
|
$
|
3,189,472
|
|
Balance at December 31, 2015
|
|
51,610,226
|
|
|
$
|
52
|
|
|
$
|
1,189,032
|
|
|
$
|
1,993,646
|
|
|
$
|
15,404
|
|
|
$
|
3,198,134
|
|
|
$
|
135,097
|
|
|
$
|
3,333,231
|
|
Common stock issued under employee benefit plans, net of restricted stock cancellations
|
|
372,282
|
|
|
—
|
|
|
6,852
|
|
|
—
|
|
|
—
|
|
|
6,852
|
|
|
—
|
|
|
6,852
|
|
|||||||
Common stock issued under ESOP
|
|
43,165
|
|
|
—
|
|
|
4,328
|
|
|
—
|
|
|
—
|
|
|
4,328
|
|
|
—
|
|
|
4,328
|
|
|||||||
Income tax effect from stock options exercised, vesting of restricted stock and other
|
|
—
|
|
|
—
|
|
|
(6,587
|
)
|
|
—
|
|
|
—
|
|
|
(6,587
|
)
|
|
—
|
|
|
(6,587
|
)
|
|||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
172,138
|
|
|
—
|
|
|
172,138
|
|
|
(1,161
|
)
|
|
170,977
|
|
|||||||
Capital calls and distributions, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,721
|
)
|
|
(5,721
|
)
|
|||||||
Net change in unrealized gains and losses on available-for-sale securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118,610
|
|
|
118,610
|
|
|
—
|
|
|
118,610
|
|
|||||||
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,879
|
)
|
|
(2,879
|
)
|
|
—
|
|
|
(2,879
|
)
|
|||||||
Foreign currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,214
|
)
|
|
(1,214
|
)
|
|
—
|
|
|
(1,214
|
)
|
|||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
16,196
|
|
|
—
|
|
|
—
|
|
|
16,196
|
|
|
—
|
|
|
16,196
|
|
|||||||
Balance at June 30, 2016
|
|
52,025,673
|
|
|
$
|
52
|
|
|
$
|
1,209,821
|
|
|
$
|
2,165,784
|
|
|
$
|
129,921
|
|
|
$
|
3,505,578
|
|
|
$
|
128,215
|
|
|
$
|
3,633,793
|
|
|
|
Six months ended June 30,
|
||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income before noncontrolling interests
|
|
$
|
170,977
|
|
|
$
|
196,849
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Provision for loan losses
|
|
69,674
|
|
|
32,965
|
|
||
Provision for (reduction of) unfunded credit commitments
|
|
547
|
|
|
(798
|
)
|
||
Changes in fair values of derivatives, net
|
|
(3,439
|
)
|
|
(33,030
|
)
|
||
Gains on investment securities, net
|
|
(18,586
|
)
|
|
(58,238
|
)
|
||
Depreciation and amortization
|
|
23,768
|
|
|
19,753
|
|
||
Amortization of premiums and discounts on investment securities, net
|
|
7,923
|
|
|
9,662
|
|
||
Amortization of share-based compensation
|
|
14,425
|
|
|
15,986
|
|
||
Amortization of deferred loan fees
|
|
(46,896
|
)
|
|
(43,194
|
)
|
||
Pre-tax net gain on SVBIF sale transaction
|
|
—
|
|
|
(1,287
|
)
|
||
Deferred income tax (benefit) expense
|
|
(6,374
|
)
|
|
4,283
|
|
||
Changes in other assets and liabilities:
|
|
|
|
|
||||
Accrued interest receivable and payable, net
|
|
232
|
|
|
2,087
|
|
||
Accounts receivable and payable, net
|
|
(2,598
|
)
|
|
(10,038
|
)
|
||
Income tax receivable and payable, net
|
|
(32,915
|
)
|
|
4,881
|
|
||
Accrued compensation
|
|
(79,858
|
)
|
|
(30,579
|
)
|
||
Foreign exchange spot contracts, net
|
|
53,870
|
|
|
46,517
|
|
||
Other, net
|
|
(8,683
|
)
|
|
55,060
|
|
||
Net cash provided by operating activities
|
|
142,067
|
|
|
210,879
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchases of available-for-sale securities
|
|
—
|
|
|
(1,711,333
|
)
|
||
Proceeds from sales of available-for-sale securities
|
|
2,878,272
|
|
|
6,674
|
|
||
Proceeds from maturities and pay downs of available-for-sale securities
|
|
660,464
|
|
|
791,954
|
|
||
Purchases of held-to-maturity securities
|
|
(140,641
|
)
|
|
(1,032,637
|
)
|
||
Proceeds from maturities and pay downs of held-to-maturity securities
|
|
743,117
|
|
|
734,606
|
|
||
Purchases of non-marketable and other securities
|
|
(31,239
|
)
|
|
(21,694
|
)
|
||
Proceeds from sales and distributions of non-marketable and other securities
|
|
28,064
|
|
|
93,210
|
|
||
Net (increase) decrease in loans
|
|
(2,091,903
|
)
|
|
146,753
|
|
||
Proceeds from recoveries of charged-off loans
|
|
6,074
|
|
|
4,541
|
|
||
Effect of deconsolidation of noncontrolling interest
|
|
—
|
|
|
15,995
|
|
||
Net proceeds from SVBIF sale transaction
|
|
—
|
|
|
39,284
|
|
||
Purchases of premises and equipment
|
|
(24,057
|
)
|
|
(24,539
|
)
|
||
Net cash provided by (used for) investing activities
|
|
2,028,151
|
|
|
(957,186
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Net (decrease) increase in deposits
|
|
(1,546,209
|
)
|
|
1,203,927
|
|
||
Net (decrease) in short-term borrowings
|
|
(271,681
|
)
|
|
(5,244
|
)
|
||
(Distributions to noncontrolling interests), net of contributions from noncontrolling interests
|
|
(5,721
|
)
|
|
(11,519
|
)
|
||
Tax effect from stock exercises
|
|
(6,587
|
)
|
|
10,157
|
|
||
Proceeds from issuance of common stock, ESPP, and ESOP
|
|
11,180
|
|
|
17,091
|
|
||
Proceeds from issuance of 3.50% Senior Notes
|
|
—
|
|
|
346,431
|
|
||
Net cash (used for) provided by financing activities
|
|
(1,819,018
|
)
|
|
1,560,843
|
|
||
Net increase in cash and cash equivalents
|
|
351,200
|
|
|
814,536
|
|
||
Cash and cash equivalents at beginning of period (1)
|
|
1,503,257
|
|
|
1,811,014
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
1,854,457
|
|
|
$
|
2,625,550
|
|
Supplemental disclosures:
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
20,942
|
|
|
$
|
14,949
|
|
Income taxes
|
|
157,825
|
|
|
93,439
|
|
||
Noncash items during the period:
|
|
|
|
|
||||
Changes in unrealized gains and losses on available-for-sale securities, net of tax
|
|
$
|
118,610
|
|
|
$
|
22,910
|
|
Distributions of stock from investments (2)
|
|
265
|
|
|
63,148
|
|
|
(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.
|
(2)
|
For the six months ended June 30, 2015, includes distributions to noncontrolling interests of
$41.5 million
.
|
1.
|
Basis of Presentation
|
2.
|
Stockholders’ Equity and EPS
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
Income Statement Location
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Reclassification adjustment for gains included in net income
|
|
Gains on investment securities, net
|
|
$
|
(12,328
|
)
|
|
$
|
(141
|
)
|
|
$
|
(11,582
|
)
|
|
$
|
(2,737
|
)
|
Related tax expense
|
|
Income tax expense
|
|
5,017
|
|
|
57
|
|
|
4,713
|
|
|
1,105
|
|
||||
Total reclassification adjustment for gains included in net income, net of tax
|
|
|
|
$
|
(7,311
|
)
|
|
$
|
(84
|
)
|
|
$
|
(6,869
|
)
|
|
$
|
(1,632
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars and shares in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income available to common stockholders
|
|
$
|
92,964
|
|
|
$
|
86,143
|
|
|
$
|
172,138
|
|
|
$
|
174,659
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding-basic
|
|
51,831
|
|
|
51,268
|
|
|
51,739
|
|
|
51,139
|
|
||||
Weighted average effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Stock options and ESPP
|
|
238
|
|
|
410
|
|
|
246
|
|
|
420
|
|
||||
Restricted stock units
|
|
118
|
|
|
198
|
|
|
145
|
|
|
229
|
|
||||
Denominator for diluted calculation
|
|
52,187
|
|
|
51,876
|
|
|
52,130
|
|
|
51,788
|
|
||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
1.79
|
|
|
$
|
1.68
|
|
|
$
|
3.33
|
|
|
$
|
3.42
|
|
Diluted
|
|
$
|
1.78
|
|
|
$
|
1.66
|
|
|
$
|
3.30
|
|
|
$
|
3.37
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||
(Shares in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Stock options
|
|
462
|
|
|
99
|
|
|
407
|
|
|
146
|
|
Restricted stock units
|
|
143
|
|
|
—
|
|
|
88
|
|
|
—
|
|
Total
|
|
605
|
|
|
99
|
|
|
495
|
|
|
146
|
|
3.
|
Share-Based Compensation
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Share-based compensation expense
|
|
$
|
7,548
|
|
|
$
|
8,215
|
|
|
$
|
14,425
|
|
|
$
|
15,986
|
|
Income tax benefit related to share-based compensation expense
|
|
(4,581
|
)
|
|
(2,692
|
)
|
|
(6,698
|
)
|
|
(5,330
|
)
|
(Dollars in thousands)
|
|
Unrecognized
Expense
|
|
Average
Expected
Recognition
Period - in Years
|
||
Stock options
|
|
$
|
12,710
|
|
|
2.69
|
Restricted stock units
|
|
56,871
|
|
|
2.84
|
|
Total unrecognized share-based compensation expense
|
|
$
|
69,581
|
|
|
|
|
|
Options
|
|
Weighted
Average
Exercise Price
|
|
Weighted Average Remaining Contractual Life - in Years
|
|
Aggregate
Intrinsic Value
of In-The-
Money
Options
|
|||||
Outstanding at December 31, 2015
|
|
1,137,228
|
|
|
$
|
77.12
|
|
|
|
|
|
||
Granted
|
|
175,433
|
|
|
105.18
|
|
|
|
|
|
|||
Exercised
|
|
(108,199
|
)
|
|
39.48
|
|
|
|
|
|
|||
Forfeited
|
|
(11,043
|
)
|
|
94.88
|
|
|
|
|
|
|||
Expired
|
|
(190
|
)
|
|
19.48
|
|
|
|
|
|
|||
Outstanding at June 30, 2016
|
|
1,193,229
|
|
|
84.51
|
|
|
4.03
|
|
$
|
21,461,860
|
|
|
Vested and expected to vest at June 30, 2016
|
|
1,157,616
|
|
|
83.78
|
|
|
3.97
|
|
21,397,505
|
|
||
Exercisable at June 30, 2016
|
|
737,697
|
|
|
71.64
|
|
|
3.02
|
|
19,756,003
|
|
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested at December 31, 2015
|
|
572,038
|
|
|
$
|
103.50
|
|
Granted
|
|
346,428
|
|
|
100.11
|
|
|
Vested
|
|
(211,674
|
)
|
|
87.50
|
|
|
Forfeited
|
|
(12,381
|
)
|
|
105.24
|
|
|
Nonvested at June 30, 2016
|
|
694,411
|
|
|
106.66
|
|
4.
|
Variable Interest Entities
|
(Dollars in thousands)
|
|
Consolidated VIEs
|
|
Unconsolidated VIEs
|
|
Maximum Exposure to Loss in Unconsolidated VIEs
|
||||||
June 30, 2016:
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
8,319
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-marketable and other securities (1)
|
|
195,482
|
|
|
355,134
|
|
|
355,134
|
|
|||
Accrued interest receivable and other assets
|
|
568
|
|
|
—
|
|
|
—
|
|
|||
Total assets
|
|
$
|
204,369
|
|
|
$
|
355,134
|
|
|
$
|
355,134
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
Accrued expenses and other liabilities (1)
|
|
894
|
|
|
72,231
|
|
|
—
|
|
|||
Total liabilities
|
|
$
|
894
|
|
|
$
|
72,231
|
|
|
$
|
—
|
|
December 31, 2015:
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
11,811
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-marketable and other securities (1)
|
|
203,714
|
|
|
364,450
|
|
|
364,450
|
|
|||
Accrued interest receivable and other assets
|
|
494
|
|
|
—
|
|
|
—
|
|
|||
Total assets
|
|
$
|
216,019
|
|
|
$
|
364,450
|
|
|
$
|
364,450
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
Accrued expenses and other liabilities (1)
|
|
433
|
|
|
90,978
|
|
|
—
|
|
|||
Total liabilities
|
|
$
|
433
|
|
|
$
|
90,978
|
|
|
$
|
—
|
|
|
(1)
|
Included in our unconsolidated non-marketable and other securities portfolio at
June 30, 2016
and
December 31, 2015
are investments in qualified affordable housing projects of
$153.8 million
and
$154.4 million
, respectively and related unfunded commitments of
$72.2 million
and
$91.0 million
, respectively.
|
5.
|
Cash and Cash Equivalents
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Cash and due from banks (1)
|
|
$
|
1,533,270
|
|
|
$
|
1,372,743
|
|
Securities purchased under agreements to resell (2)
|
|
316,059
|
|
|
125,391
|
|
||
Other short-term investment securities
|
|
5,128
|
|
|
5,123
|
|
||
Total cash and cash equivalents
|
|
$
|
1,854,457
|
|
|
$
|
1,503,257
|
|
|
(1)
|
At
June 30, 2016
and
December 31, 2015
,
$542 million
and
$405 million
, respectively, of our cash and due from banks was deposited at the Federal Reserve Bank and was earning interest at the Federal Funds target rate, and interest-earning deposits in other financial institutions were
$666 million
and
$500 million
, respectively.
|
(2)
|
At
June 30, 2016
and
December 31, 2015
, securities purchased und
er agreements to resell were collateralized by U.S. Treasury securities and U.S. agency securities with aggregate fair values of
$322 million
an
d
$128 million
, respectively. None of these securities received as collateral were sold or pledged as of
June 30, 2016
or
December 31, 2015
.
|
6.
|
Investment Securities
|
|
|
June 30, 2016
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Carrying
Value
|
||||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
8,826,762
|
|
|
$
|
150,336
|
|
|
$
|
—
|
|
|
$
|
8,977,098
|
|
U.S. agency debentures
|
|
2,288,876
|
|
|
47,726
|
|
|
—
|
|
|
2,336,602
|
|
||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,200,111
|
|
|
8,093
|
|
|
(1,910
|
)
|
|
1,206,294
|
|
||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
537,041
|
|
|
1,004
|
|
|
(348
|
)
|
|
537,697
|
|
||||
Equity securities
|
|
834
|
|
|
152
|
|
|
(60
|
)
|
|
926
|
|
||||
Total available-for-sale securities
|
|
$
|
12,853,624
|
|
|
$
|
207,311
|
|
|
$
|
(2,318
|
)
|
|
$
|
13,058,617
|
|
|
|
December 31, 2015
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Carrying
Value
|
||||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
11,679,450
|
|
|
$
|
19,134
|
|
|
$
|
(20,549
|
)
|
|
$
|
11,678,035
|
|
U.S. agency debentures
|
|
2,677,453
|
|
|
17,684
|
|
|
(5,108
|
)
|
|
2,690,029
|
|
||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,408,206
|
|
|
6,591
|
|
|
(15,518
|
)
|
|
1,399,279
|
|
||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
604,236
|
|
|
3,709
|
|
|
(9
|
)
|
|
607,936
|
|
||||
Equity securities
|
|
6,596
|
|
|
460
|
|
|
(1,587
|
)
|
|
5,469
|
|
||||
Total available-for-sale securities
|
|
$
|
16,375,941
|
|
|
$
|
47,578
|
|
|
$
|
(42,771
|
)
|
|
$
|
16,380,748
|
|
|
|
June 30, 2016
|
||||||||||||||||||||||
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
263,702
|
|
|
$
|
(1,910
|
)
|
|
$
|
263,702
|
|
|
$
|
(1,910
|
)
|
Agency-issued collateralized mortgage obligations—variable rate
|
|
187,429
|
|
|
(348
|
)
|
|
—
|
|
|
—
|
|
|
187,429
|
|
|
(348
|
)
|
||||||
Equity securities
|
|
187
|
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
187
|
|
|
(60
|
)
|
||||||
Total temporarily impaired securities: (1)
|
|
$
|
187,616
|
|
|
$
|
(408
|
)
|
|
$
|
263,702
|
|
|
$
|
(1,910
|
)
|
|
$
|
451,318
|
|
|
$
|
(2,318
|
)
|
|
(1)
|
As of
June 30, 2016
, we identified a total of
74
investments that were in unrealized loss positions, of which
14
investments totaling
$263.7 million
with unrealized losses of
$1.9 million
have been in an impaired position for a period of time greater than 12 months. As of
June 30, 2016
, 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
June 30, 2016
, 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, 2015
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
7,467,519
|
|
|
$
|
(20,549
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,467,519
|
|
|
$
|
(20,549
|
)
|
U.S. agency debentures
|
|
760,071
|
|
|
(5,108
|
)
|
|
—
|
|
|
—
|
|
|
760,071
|
|
|
(5,108
|
)
|
||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
545,404
|
|
|
(4,681
|
)
|
|
373,284
|
|
|
(10,837
|
)
|
|
918,688
|
|
|
(15,518
|
)
|
||||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
7,776
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
7,776
|
|
|
(9
|
)
|
||||||
Equity securities
|
|
2,955
|
|
|
(1,587
|
)
|
|
—
|
|
|
—
|
|
|
2,955
|
|
|
(1,587
|
)
|
||||||
Total temporarily impaired securities (1):
|
|
$
|
8,783,725
|
|
|
$
|
(31,934
|
)
|
|
$
|
373,284
|
|
|
$
|
(10,837
|
)
|
|
$
|
9,157,009
|
|
|
$
|
(42,771
|
)
|
|
(1)
|
As of December 31, 2015, we identified a total of
243
investments that were in unrealized loss positions, of which
18
investments totaling
$373.3 million
with unrealized losses of
$10.8 million
have been in an impaired position for a period of time greater than 12 months.
|
|
|
June 30, 2016
|
|||||||||||||||||||||||||||||||||
|
|
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
|
|
$
|
8,977,098
|
|
|
1.31
|
%
|
|
$
|
1,353,468
|
|
|
0.78
|
%
|
|
$
|
7,623,630
|
|
|
1.41
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. agency debentures
|
|
2,336,602
|
|
|
1.59
|
|
|
376,492
|
|
|
1.42
|
|
|
1,960,110
|
|
|
1.62
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
1,206,294
|
|
|
1.93
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
848,402
|
|
|
2.11
|
|
|
357,892
|
|
|
1.52
|
|
|||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
537,697
|
|
|
0.71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
537,697
|
|
|
0.71
|
|
|||||
Total
|
|
$
|
13,057,691
|
|
|
1.40
|
|
|
$
|
1,729,960
|
|
|
0.92
|
|
|
$
|
9,583,740
|
|
|
1.45
|
|
|
$
|
848,402
|
|
|
2.11
|
|
|
$
|
895,589
|
|
|
1.03
|
|
|
|
June 30, 2016
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value
|
||||||||
Held-to-maturity securities, at cost:
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency debentures (1)
|
|
$
|
588,813
|
|
|
$
|
19,436
|
|
|
$
|
—
|
|
|
$
|
608,249
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
2,228,633
|
|
|
40,751
|
|
|
(270
|
)
|
|
2,269,114
|
|
||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
3,829,568
|
|
|
44,721
|
|
|
(1,267
|
)
|
|
3,873,022
|
|
||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
343,040
|
|
|
200
|
|
|
(41
|
)
|
|
343,199
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
1,152,105
|
|
|
18,927
|
|
|
(164
|
)
|
|
1,170,868
|
|
||||
Municipal bonds and notes
|
|
58,284
|
|
|
161
|
|
|
(849
|
)
|
|
57,596
|
|
||||
Total held-to-maturity securities
|
|
$
|
8,200,443
|
|
|
$
|
124,196
|
|
|
$
|
(2,591
|
)
|
|
$
|
8,322,048
|
|
|
(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, 2015
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair Value
|
||||||||
Held-to-maturity securities, at cost:
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency debentures (1)
|
|
$
|
545,473
|
|
|
$
|
8,876
|
|
|
$
|
—
|
|
|
$
|
554,349
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
2,366,627
|
|
|
546
|
|
|
(11,698
|
)
|
|
2,355,475
|
|
||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
4,225,781
|
|
|
3,054
|
|
|
(32,999
|
)
|
|
4,195,836
|
|
||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
370,779
|
|
|
758
|
|
|
(33
|
)
|
|
371,504
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
1,214,716
|
|
|
3,405
|
|
|
(3,475
|
)
|
|
1,214,646
|
|
||||
Municipal bonds and notes
|
|
67,587
|
|
|
55
|
|
|
(830
|
)
|
|
66,812
|
|
||||
Total held-to-maturity securities
|
|
$
|
8,790,963
|
|
|
$
|
16,694
|
|
|
$
|
(49,035
|
)
|
|
$
|
8,758,622
|
|
|
(1)
|
Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.
|
|
|
June 30, 2016
|
||||||||||||||||||||||
|
|
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
|
||||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency-issued mortgage-backed securities
|
|
$
|
766
|
|
|
$
|
(20
|
)
|
|
$
|
24,980
|
|
|
$
|
(250
|
)
|
|
$
|
25,746
|
|
|
$
|
(270
|
)
|
Agency-issued collateralized mortgage obligations—fixed rate
|
|
—
|
|
|
—
|
|
|
270,867
|
|
|
(1,267
|
)
|
|
270,867
|
|
|
(1,267
|
)
|
||||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
186,137
|
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
186,137
|
|
|
(41
|
)
|
||||||
Agency-issued commercial mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
26,424
|
|
|
(164
|
)
|
|
26,424
|
|
|
(164
|
)
|
||||||
Municipal bonds and notes
|
|
12,588
|
|
|
(75
|
)
|
|
33,790
|
|
|
(774
|
)
|
|
46,378
|
|
|
(849
|
)
|
||||||
Total temporarily impaired securities (1):
|
|
$
|
199,491
|
|
|
$
|
(136
|
)
|
|
$
|
356,061
|
|
|
$
|
(2,455
|
)
|
|
$
|
555,552
|
|
|
$
|
(2,591
|
)
|
|
(1)
|
As of
June 30, 2016
, we identified a total of
132
investments that were in unrealized loss positions, of which
81
investments totaling
$356.1 million
with unrealized losses of
$2.5 million
have been in an impaired position for a period of time greater than 12 months. As of
June 30, 2016
, 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
June 30, 2016
, 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, 2015
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair Value of
Investments |
|
Unrealized
Losses |
|
Fair Value of
Investments |
|
Unrealized
Losses |
|
Fair Value of
Investments |
|
Unrealized
Losses |
||||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency-issued mortgage-backed securities
|
|
$
|
2,121,258
|
|
|
$
|
(10,860
|
)
|
|
$
|
22,507
|
|
|
$
|
(838
|
)
|
|
$
|
2,143,765
|
|
|
$
|
(11,698
|
)
|
Agency-issued collateralized mortgage obligations—fixed rate
|
|
3,153,483
|
|
|
(30,230
|
)
|
|
150,058
|
|
|
(2,769
|
)
|
|
3,303,541
|
|
|
(32,999
|
)
|
||||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
170,350
|
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
170,350
|
|
|
(33
|
)
|
||||||
Agency-issued commercial mortgage-backed securities
|
|
823,414
|
|
|
(2,994
|
)
|
|
40,276
|
|
|
(481
|
)
|
|
863,690
|
|
|
(3,475
|
)
|
||||||
Municipal bonds and notes
|
|
34,278
|
|
|
(274
|
)
|
|
25,509
|
|
|
(556
|
)
|
|
59,787
|
|
|
(830
|
)
|
||||||
Total temporarily impaired securities (1):
|
|
$
|
6,302,783
|
|
|
$
|
(44,391
|
)
|
|
$
|
238,350
|
|
|
$
|
(4,644
|
)
|
|
$
|
6,541,133
|
|
|
$
|
(49,035
|
)
|
|
(1)
|
As of December 31, 2015, we identified a total of
384
investments that were in unrealized loss positions, of which
58
investments totaling
$238.4 million
with unrealized losses of
$4.6 million
have been in an impaired position for a period of time greater than 12 months.
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Non-marketable and other securities:
|
|
|
|
|
||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments (1)
|
|
$
|
144,227
|
|
|
$
|
152,237
|
|
Other venture capital investments (2)
|
|
2,040
|
|
|
2,040
|
|
||
Other securities (fair value accounting) (3)
|
|
280
|
|
|
548
|
|
||
Non-marketable securities (equity method accounting) (4):
|
|
|
|
|
||||
Venture capital and private equity fund investments
|
|
82,214
|
|
|
85,705
|
|
||
Debt funds
|
|
19,239
|
|
|
21,970
|
|
||
Other investments
|
|
120,721
|
|
|
118,532
|
|
||
Non-marketable securities (cost method accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments (5)
|
|
117,379
|
|
|
120,676
|
|
||
Other investments
|
|
24,156
|
|
|
18,882
|
|
||
Investments in qualified affordable housing projects, net (6)
|
|
153,798
|
|
|
154,356
|
|
||
Total non-marketable and other securities
|
|
$
|
664,054
|
|
|
$
|
674,946
|
|
|
(1)
|
The following table shows the amounts of venture capital and private equity fund investments held by the following funds and our ownership percentage of each fund at
June 30, 2016
and
December 31, 2015
(fair value accounting):
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
SVB Strategic Investors Fund, LP
|
|
$
|
18,062
|
|
|
12.6
|
%
|
|
$
|
20,794
|
|
|
12.6
|
%
|
SVB Capital Preferred Return Fund, LP
|
|
58,220
|
|
|
20.0
|
|
|
60,619
|
|
|
20.0
|
|
||
SVB Capital—NT Growth Partners, LP
|
|
60,789
|
|
|
33.0
|
|
|
62,983
|
|
|
33.0
|
|
||
Other private equity fund (i)
|
|
7,156
|
|
|
58.2
|
|
|
7,841
|
|
|
58.2
|
|
||
Total venture capital and private equity fund investments
|
|
$
|
144,227
|
|
|
|
|
$
|
152,237
|
|
|
|
|
(i)
|
At
June 30, 2016
, we had a direct ownership interest of
41.5 percent
in the other private equity fund and an indirect ownership interest of
12.6 percent
through our ownership interest of SVB Capital—NT Growth Partners, LP and an indirect ownership interest of
4.1 percent
through our ownership interest of SVB Capital Preferred Return Fund, LP.
|
(2)
|
The following table shows the amounts of other venture capital investments held by the following fund and our ownership percentage at
June 30, 2016
and
December 31, 2015
(fair value accounting):
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
Silicon Valley BancVentures, LP
|
|
$
|
2,040
|
|
|
10.7
|
%
|
|
$
|
2,040
|
|
|
10.7
|
%
|
Total other venture capital investments
|
|
$
|
2,040
|
|
|
|
|
$
|
2,040
|
|
|
|
(3)
|
Investments classified as other securities (fair value accounting) represent direct equity investments in public companies held by our consolidated funds.
|
(4)
|
The following table shows the carrying value and our ownership percentage of each investment at
June 30, 2016
and
December 31, 2015
(equity method accounting):
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
Venture capital and private equity fund investments:
|
|
|
|
|
|
|
|
|
||||||
SVB Strategic Investors Fund II, LP
|
|
$
|
8,996
|
|
|
8.6
|
%
|
|
$
|
10,035
|
|
|
8.6
|
%
|
SVB Strategic Investors Fund III, LP
|
|
20,957
|
|
|
5.9
|
|
|
23,926
|
|
|
5.9
|
|
||
SVB Strategic Investors Fund IV, LP
|
|
24,557
|
|
|
5.0
|
|
|
26,411
|
|
|
5.0
|
|
||
Strategic Investors Fund V funds
|
|
11,463
|
|
|
Various
|
|
|
10,470
|
|
|
Various
|
|
||
Other venture capital and private equity fund investments
|
|
16,241
|
|
|
Various
|
|
|
14,863
|
|
|
Various
|
|
||
Total venture capital and private equity fund investments
|
|
$
|
82,214
|
|
|
|
|
$
|
85,705
|
|
|
|
||
Debt funds:
|
|
|
|
|
|
|
|
|
||||||
Gold Hill Capital 2008, LP (i)
|
|
$
|
15,705
|
|
|
15.5
|
%
|
|
$
|
17,453
|
|
|
15.5
|
%
|
Other debt funds
|
|
3,534
|
|
|
Various
|
|
|
4,517
|
|
|
Various
|
|
||
Total debt funds
|
|
$
|
19,239
|
|
|
|
|
$
|
21,970
|
|
|
|
||
Other investments:
|
|
|
|
|
|
|
|
|
||||||
China Joint Venture investment
|
|
$
|
78,074
|
|
|
50.0
|
%
|
|
$
|
78,799
|
|
|
50.0
|
%
|
Other investments
|
|
42,647
|
|
|
Various
|
|
|
39,733
|
|
|
Various
|
|
||
Total other investments
|
|
$
|
120,721
|
|
|
|
|
$
|
118,532
|
|
|
|
|
(i)
|
At
June 30, 2016
, 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
264
and
267
funds (primarily venture capital funds) at
June 30, 2016
and
December 31, 2015
, respectively, where our ownership interest is typically 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
$117 million
and
$227 million
, respectively, as of
June 30, 2016
. The carrying value, and estimated fair value, of these venture capital and private equity fund investments (cost method accounting) was
$121 million
and
$233 million
, respectively, as of
December 31, 2015
.
|
(6)
|
The following table presents the balances of our investments in qualified affordable housing projects and related unfunded commitments at
June 30, 2016
and
December 31, 2015
:
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Investments in qualified affordable housing projects, net
|
|
$
|
153,798
|
|
|
$
|
154,356
|
|
Accrued expenses and other liabilities
|
|
72,231
|
|
|
90,978
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Tax credits and other tax benefits recognized
|
|
$
|
4,066
|
|
|
$
|
3,214
|
|
|
$
|
8,132
|
|
|
$
|
6,427
|
|
Amortization expense included in provision for income taxes (i)
|
|
3,578
|
|
|
2,741
|
|
|
7,190
|
|
|
5,538
|
|
|
(i)
|
All investments are amortized using the proportional amortization method and amortization expense is included in the provision for income taxes.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Gross gains on investment securities:
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities, at fair value (1)
|
|
$
|
12,401
|
|
|
$
|
235
|
|
|
$
|
14,154
|
|
|
$
|
2,925
|
|
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
7,524
|
|
|
9,199
|
|
|
10,347
|
|
|
18,021
|
|
||||
Other venture capital investments
|
|
5
|
|
|
—
|
|
|
13
|
|
|
183
|
|
||||
Other securities (fair value accounting)
|
|
305
|
|
|
281
|
|
|
368
|
|
|
9,068
|
|
||||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
2,019
|
|
|
6,709
|
|
|
3,672
|
|
|
12,723
|
|
||||
Debt funds
|
|
64
|
|
|
183
|
|
|
964
|
|
|
1,688
|
|
||||
Other investments
|
|
3,190
|
|
|
45
|
|
|
4,041
|
|
|
2,727
|
|
||||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
5,514
|
|
|
10,644
|
|
|
7,852
|
|
|
15,477
|
|
||||
Other investments
|
|
13
|
|
|
218
|
|
|
13
|
|
|
576
|
|
||||
Total gross gains on investment securities
|
|
31,035
|
|
|
27,514
|
|
|
41,424
|
|
|
63,388
|
|
||||
Gross losses on investment securities:
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities, at fair value (1)
|
|
(73
|
)
|
|
(94
|
)
|
|
(2,572
|
)
|
|
(188
|
)
|
||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
(5,943
|
)
|
|
(599
|
)
|
|
(13,836
|
)
|
|
(1,547
|
)
|
||||
Other venture capital investments
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
(52
|
)
|
||||
Other securities (fair value accounting)
|
|
(250
|
)
|
|
(120
|
)
|
|
(407
|
)
|
|
(792
|
)
|
||||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
(466
|
)
|
|
(409
|
)
|
|
(4,021
|
)
|
|
(437
|
)
|
||||
Debt funds
|
|
(284
|
)
|
|
—
|
|
|
(329
|
)
|
|
(588
|
)
|
||||
Other investments
|
|
(312
|
)
|
|
(1,140
|
)
|
|
(956
|
)
|
|
(1,140
|
)
|
||||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments (2)
|
|
(270
|
)
|
|
(174
|
)
|
|
(441
|
)
|
|
(398
|
)
|
||||
Other investments
|
|
(167
|
)
|
|
(3
|
)
|
|
(238
|
)
|
|
(8
|
)
|
||||
Total gross losses on investment securities
|
|
(7,765
|
)
|
|
(2,539
|
)
|
|
(22,838
|
)
|
|
(5,150
|
)
|
||||
Gains on investment securities, net
|
|
$
|
23,270
|
|
|
$
|
24,975
|
|
|
$
|
18,586
|
|
|
$
|
58,238
|
|
|
(1)
|
Includes realized gains (losses) on sales of available-for-sale equity securities that are recognized in the income statement. Unrealized gains (losses) on available-for-sale fixed income and equity securities are recognized in other comprehensive income. The cost basis of available-for-sale securities sold is determined on a specific identification basis.
|
(2)
|
For the
three months ended
June 30, 2016
and
2015
, includes OTTI losses of
$0.3 million
from the declines in value for
10
of the
264
investments and
$0.2 million
from the declines in value for
8
of the
273
investments, respectively. For the
six months ended
June 30, 2016
and
2015
, includes OTTI losses of
$0.4 million
from the declines in value for
18
of the
264
investments and
$0.3 million
from the declines in value for
17
of the
273
investments, respectively. We concluded that any declines in value for the remaining investments were temporary, and as such, no OTTI was required to be recognized.
|
7.
|
Loans and Allowance for Loan Losses
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Commercial loans:
|
|
|
|
|
||||
Software and internet
|
|
$
|
5,530,874
|
|
|
$
|
5,437,915
|
|
Hardware
|
|
1,123,433
|
|
|
1,071,528
|
|
||
Private equity/venture capital
|
|
7,078,544
|
|
|
5,467,577
|
|
||
Life science/healthcare
|
|
1,780,974
|
|
|
1,710,642
|
|
||
Premium wine
|
|
191,183
|
|
|
201,175
|
|
||
Other
|
|
378,399
|
|
|
312,278
|
|
||
Total commercial loans
|
|
16,083,407
|
|
|
14,201,115
|
|
||
Real estate secured loans:
|
|
|
|
|
||||
Premium wine (1)
|
|
638,053
|
|
|
646,120
|
|
||
Consumer loans (2)
|
|
1,748,419
|
|
|
1,544,440
|
|
||
Other
|
|
44,350
|
|
|
44,830
|
|
||
Total real estate secured loans
|
|
2,430,822
|
|
|
2,235,390
|
|
||
Construction loans
|
|
79,772
|
|
|
78,682
|
|
||
Consumer loans
|
|
239,777
|
|
|
226,883
|
|
||
Total loans, net of unearned income (3)
|
|
$
|
18,833,778
|
|
|
$
|
16,742,070
|
|
|
(1)
|
Included in our premium wine portfolio are gross construction loans of
$107 million
and
$121 million
at
June 30, 2016
and
December 31, 2015
, respectively.
|
(2)
|
Consumer loans secured by real estate at
June 30, 2016
and
December 31, 2015
were comprised of the following:
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Loans for personal residence
|
|
$
|
1,495,858
|
|
|
$
|
1,312,818
|
|
Loans to eligible employees
|
|
175,269
|
|
|
156,001
|
|
||
Home equity lines of credit
|
|
77,292
|
|
|
75,621
|
|
||
Consumer loans secured by real estate
|
|
$
|
1,748,419
|
|
|
$
|
1,544,440
|
|
(3)
|
Included within our total loan portfolio are credit card loans of
$181 million
and
$177 million
at
June 30, 2016
and
December 31, 2015
, respectively.
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Commercial loans:
|
|
|
|
|
||||
Software and internet
|
|
$
|
5,530,874
|
|
|
$
|
5,437,915
|
|
Hardware
|
|
1,123,433
|
|
|
1,071,528
|
|
||
Private equity/venture capital
|
|
7,078,544
|
|
|
5,467,577
|
|
||
Life science/healthcare
|
|
1,780,974
|
|
|
1,710,642
|
|
||
Premium wine
|
|
829,236
|
|
|
847,295
|
|
||
Other
|
|
502,521
|
|
|
435,790
|
|
||
Total commercial loans
|
|
16,845,582
|
|
|
14,970,747
|
|
||
Consumer loans:
|
|
|
|
|
||||
Real estate secured loans
|
|
1,748,419
|
|
|
1,544,440
|
|
||
Other consumer loans
|
|
239,777
|
|
|
226,883
|
|
||
Total consumer loans
|
|
1,988,196
|
|
|
1,771,323
|
|
||
Total loans, net of unearned income
|
|
$
|
18,833,778
|
|
|
$
|
16,742,070
|
|
(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
|
||||||||||||
June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
16,406
|
|
|
$
|
1,138
|
|
|
$
|
54
|
|
|
$
|
17,598
|
|
|
$
|
5,459,384
|
|
|
$
|
54
|
|
Hardware
|
|
201
|
|
|
48
|
|
|
—
|
|
|
249
|
|
|
1,108,574
|
|
|
—
|
|
||||||
Private equity/venture capital
|
|
11,258
|
|
|
63
|
|
|
—
|
|
|
11,321
|
|
|
7,118,442
|
|
|
—
|
|
||||||
Life science/healthcare
|
|
503
|
|
|
26
|
|
|
358
|
|
|
887
|
|
|
1,743,728
|
|
|
358
|
|
||||||
Premium wine
|
|
4,537
|
|
|
—
|
|
|
—
|
|
|
4,537
|
|
|
825,275
|
|
|
—
|
|
||||||
Other
|
|
98
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
500,293
|
|
|
—
|
|
||||||
Total commercial loans
|
|
33,003
|
|
|
1,275
|
|
|
412
|
|
|
34,690
|
|
|
16,755,696
|
|
|
412
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate secured loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,747,021
|
|
|
—
|
|
||||||
Other consumer loans
|
|
45,008
|
|
|
83
|
|
|
—
|
|
|
45,091
|
|
|
193,745
|
|
|
—
|
|
||||||
Total consumer loans
|
|
45,008
|
|
|
83
|
|
|
—
|
|
|
45,091
|
|
|
1,940,766
|
|
|
—
|
|
||||||
Total gross loans excluding impaired loans
|
|
78,011
|
|
|
1,358
|
|
|
412
|
|
|
79,781
|
|
|
18,696,462
|
|
|
412
|
|
||||||
Impaired loans
|
|
2,975
|
|
|
662
|
|
|
16,182
|
|
|
19,819
|
|
|
153,840
|
|
|
—
|
|
||||||
Total gross loans
|
|
$
|
80,986
|
|
|
$
|
2,020
|
|
|
$
|
16,594
|
|
|
$
|
99,600
|
|
|
$
|
18,850,302
|
|
|
$
|
412
|
|
December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
3,384
|
|
|
$
|
6,638
|
|
|
$
|
—
|
|
|
$
|
10,022
|
|
|
$
|
5,371,222
|
|
|
$
|
—
|
|
Hardware
|
|
1,061
|
|
|
66
|
|
|
—
|
|
|
1,127
|
|
|
1,051,368
|
|
|
—
|
|
||||||
Private equity/venture capital
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|
5,511,912
|
|
|
—
|
|
||||||
Life science/healthcare
|
|
853
|
|
|
6,537
|
|
|
—
|
|
|
7,390
|
|
|
1,665,801
|
|
|
—
|
|
||||||
Premium wine
|
|
16
|
|
|
65
|
|
|
—
|
|
|
81
|
|
|
847,249
|
|
|
—
|
|
||||||
Other
|
|
14
|
|
|
22
|
|
|
—
|
|
|
36
|
|
|
438,313
|
|
|
—
|
|
||||||
Total commercial loans
|
|
5,328
|
|
|
13,345
|
|
|
—
|
|
|
18,673
|
|
|
14,885,865
|
|
|
—
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate secured loans
|
|
4,911
|
|
|
865
|
|
|
—
|
|
|
5,776
|
|
|
1,537,421
|
|
|
—
|
|
||||||
Other consumer loans
|
|
228
|
|
|
115
|
|
|
—
|
|
|
343
|
|
|
226,369
|
|
|
—
|
|
||||||
Total consumer loans
|
|
5,139
|
|
|
980
|
|
|
—
|
|
|
6,119
|
|
|
1,763,790
|
|
|
—
|
|
||||||
Total gross loans excluding impaired loans
|
|
10,467
|
|
|
14,325
|
|
|
—
|
|
|
24,792
|
|
|
16,649,655
|
|
|
—
|
|
||||||
Impaired loans
|
|
333
|
|
|
—
|
|
|
7,221
|
|
|
7,554
|
|
|
175,130
|
|
|
—
|
|
||||||
Total gross loans
|
|
$
|
10,800
|
|
|
$
|
14,325
|
|
|
$
|
7,221
|
|
|
$
|
32,346
|
|
|
$
|
16,824,785
|
|
|
$
|
—
|
|
(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
|
||||||||
June 30, 2016:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
93,971
|
|
|
$
|
—
|
|
|
$
|
93,971
|
|
|
$
|
101,358
|
|
Hardware
|
|
22,751
|
|
|
—
|
|
|
22,751
|
|
|
22,786
|
|
||||
Private equity/venture capital
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Life science/healthcare
|
|
49,265
|
|
|
—
|
|
|
49,265
|
|
|
51,412
|
|
||||
Premium wine
|
|
1,296
|
|
|
—
|
|
|
1,296
|
|
|
1,296
|
|
||||
Other
|
|
5,467
|
|
|
—
|
|
|
5,467
|
|
|
5,467
|
|
||||
Total commercial loans
|
|
172,750
|
|
|
—
|
|
|
172,750
|
|
|
182,319
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
123
|
|
|
—
|
|
|
123
|
|
|
1,387
|
|
||||
Other consumer loans
|
|
786
|
|
|
—
|
|
|
786
|
|
|
786
|
|
||||
Total consumer loans
|
|
909
|
|
|
—
|
|
|
909
|
|
|
2,173
|
|
||||
Total
|
|
$
|
173,659
|
|
|
$
|
—
|
|
|
$
|
173,659
|
|
|
$
|
184,492
|
|
December 31, 2015:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
100,866
|
|
|
$
|
—
|
|
|
$
|
100,866
|
|
|
$
|
125,494
|
|
Hardware
|
|
27,736
|
|
|
—
|
|
|
27,736
|
|
|
27,869
|
|
||||
Private equity/venture capital
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Life science/healthcare
|
|
50,429
|
|
|
925
|
|
|
51,354
|
|
|
55,310
|
|
||||
Premium wine
|
|
898
|
|
|
1,167
|
|
|
2,065
|
|
|
2,604
|
|
||||
Other
|
|
520
|
|
|
—
|
|
|
520
|
|
|
520
|
|
||||
Total commercial loans
|
|
180,449
|
|
|
2,092
|
|
|
182,541
|
|
|
211,797
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
143
|
|
|
—
|
|
|
143
|
|
|
1,393
|
|
||||
Other consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total consumer loans
|
|
143
|
|
|
—
|
|
|
143
|
|
|
1,393
|
|
||||
Total
|
|
$
|
180,592
|
|
|
$
|
2,092
|
|
|
$
|
182,684
|
|
|
$
|
213,190
|
|
Three months ended June 30,
|
|
Average impaired loans
|
|
Interest income on impaired loans
|
||||||||||||
(dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015 (1)
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
101,168
|
|
|
$
|
52,747
|
|
|
$
|
438
|
|
|
$
|
—
|
|
Hardware
|
|
23,221
|
|
|
1,393
|
|
|
442
|
|
|
—
|
|
||||
Life science/healthcare
|
|
33,324
|
|
|
1,993
|
|
|
—
|
|
|
—
|
|
||||
Premium wine
|
|
2,040
|
|
|
1,239
|
|
|
18
|
|
|
—
|
|
||||
Other
|
|
5,485
|
|
|
5,222
|
|
|
7
|
|
|
—
|
|
||||
Total commercial loans
|
|
165,238
|
|
|
62,594
|
|
|
905
|
|
|
—
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
127
|
|
|
183
|
|
|
—
|
|
|
—
|
|
||||
Other consumer loans
|
|
786
|
|
|
76
|
|
|
11
|
|
|
—
|
|
||||
Total consumer loans
|
|
913
|
|
|
259
|
|
|
11
|
|
|
—
|
|
||||
Total average impaired loans
|
|
$
|
166,151
|
|
|
$
|
62,853
|
|
|
$
|
916
|
|
|
$
|
—
|
|
|
(1)
|
For the three months ended
June 30, 2015
all impaired loans were nonaccrual loans and no interest income was recognized.
|
Six months ended June 30,
|
|
Average impaired loans
|
|
Interest income on impaired loans
|
||||||||||||
(dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015 (1)
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
95,268
|
|
|
$
|
43,236
|
|
|
$
|
763
|
|
|
$
|
—
|
|
Hardware
|
|
23,824
|
|
|
1,518
|
|
|
749
|
|
|
—
|
|
||||
Life science/healthcare
|
|
36,507
|
|
|
1,197
|
|
|
—
|
|
|
—
|
|
||||
Premium wine
|
|
2,106
|
|
|
1,261
|
|
|
35
|
|
|
—
|
|
||||
Other
|
|
4,669
|
|
|
3,681
|
|
|
15
|
|
|
—
|
|
||||
Total commercial loans
|
|
162,374
|
|
|
50,893
|
|
|
1,562
|
|
|
—
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
131
|
|
|
189
|
|
|
—
|
|
|
—
|
|
||||
Other consumer loans
|
|
410
|
|
|
82
|
|
|
11
|
|
|
—
|
|
||||
Total consumer loans
|
|
541
|
|
|
271
|
|
|
11
|
|
|
—
|
|
||||
Total average impaired loans
|
|
$
|
162,915
|
|
|
$
|
51,164
|
|
|
$
|
1,573
|
|
|
$
|
—
|
|
|
(1)
|
For the six months ended
June 30, 2015
all impaired loans were nonaccrual loans and no interest income was recognized.
|
Three months ended June 30, 2016 (dollars in thousands)
|
|
Beginning Balance March 31, 2016
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for
(Reduction of) Loan Losses
|
|
Foreign Currency Translation Adjustments
|
|
Ending Balance June 30, 2016
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
106,898
|
|
|
$
|
(18,055
|
)
|
|
$
|
260
|
|
|
$
|
16,215
|
|
|
$
|
(1,089
|
)
|
|
$
|
104,229
|
|
Hardware
|
|
23,836
|
|
|
(2,015
|
)
|
|
183
|
|
|
2,003
|
|
|
(136
|
)
|
|
23,871
|
|
||||||
Private equity/venture capital
|
|
43,686
|
|
|
—
|
|
|
—
|
|
|
6,562
|
|
|
(441
|
)
|
|
49,807
|
|
||||||
Life science/healthcare
|
|
30,285
|
|
|
(606
|
)
|
|
185
|
|
|
12,853
|
|
|
(865
|
)
|
|
41,852
|
|
||||||
Premium wine
|
|
5,244
|
|
|
—
|
|
|
—
|
|
|
(465
|
)
|
|
31
|
|
|
4,810
|
|
||||||
Other
|
|
9,547
|
|
|
—
|
|
|
599
|
|
|
(714
|
)
|
|
48
|
|
|
9,480
|
|
||||||
Total commercial loans
|
|
219,496
|
|
|
(20,676
|
)
|
|
1,227
|
|
|
36,454
|
|
|
(2,452
|
)
|
|
234,049
|
|
||||||
Consumer loans
|
|
10,753
|
|
|
—
|
|
|
34
|
|
|
(121
|
)
|
|
8
|
|
|
10,674
|
|
||||||
Total allowance for loan losses
|
|
$
|
230,249
|
|
|
$
|
(20,676
|
)
|
|
$
|
1,261
|
|
|
$
|
36,333
|
|
|
$
|
(2,444
|
)
|
|
$
|
244,723
|
|
Three months ended June 30, 2015 (dollars in thousands)
|
|
Beginning Balance March 31, 2015
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for
(Reduction of) Loan Losses
|
|
Foreign Currency Translation Adjustments (1)
|
|
Ending Balance June 30, 2015
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
82,092
|
|
|
$
|
(762
|
)
|
|
$
|
597
|
|
|
$
|
24,732
|
|
|
$
|
69
|
|
|
$
|
106,728
|
|
Hardware
|
|
21,258
|
|
|
(839
|
)
|
|
1,881
|
|
|
(1,823
|
)
|
|
(5
|
)
|
|
20,472
|
|
||||||
Private equity/venture capital
|
|
30,837
|
|
|
—
|
|
|
—
|
|
|
(1,557
|
)
|
|
(4
|
)
|
|
29,276
|
|
||||||
Life science/healthcare
|
|
15,323
|
|
|
(2,994
|
)
|
|
45
|
|
|
4,846
|
|
|
13
|
|
|
17,233
|
|
||||||
Premium wine
|
|
4,503
|
|
|
—
|
|
|
7
|
|
|
(101
|
)
|
|
—
|
|
|
4,409
|
|
||||||
Other
|
|
6,151
|
|
|
(139
|
)
|
|
409
|
|
|
(505
|
)
|
|
(22
|
)
|
|
5,894
|
|
||||||
Total commercial loans
|
|
160,164
|
|
|
(4,734
|
)
|
|
2,939
|
|
|
25,592
|
|
|
51
|
|
|
184,012
|
|
||||||
Consumer loans
|
|
7,711
|
|
|
—
|
|
|
—
|
|
|
921
|
|
|
—
|
|
|
8,632
|
|
||||||
Total allowance for loan losses
|
|
$
|
167,875
|
|
|
$
|
(4,734
|
)
|
|
$
|
2,939
|
|
|
$
|
26,513
|
|
|
$
|
51
|
|
|
$
|
192,644
|
|
|
(1)
|
Reflects foreign currency translation adjustments within the allowance for loan losses. Prior period amounts were previously reported with loan recoveries and have been revised to conform to current period presentation.
|
Six months ended June 30, 2016 (dollars in thousands)
|
|
Beginning Balance December 31, 2015
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for
(Reduction of) Loan Losses
|
|
Foreign Currency Translation Adjustments
|
|
Ending Balance June 30, 2016
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
103,045
|
|
|
$
|
(40,216
|
)
|
|
$
|
4,220
|
|
|
$
|
37,847
|
|
|
$
|
(667
|
)
|
|
$
|
104,229
|
|
Hardware
|
|
23,085
|
|
|
(3,501
|
)
|
|
422
|
|
|
3,962
|
|
|
(97
|
)
|
|
23,871
|
|
||||||
Private equity/venture capital
|
|
35,282
|
|
|
—
|
|
|
—
|
|
|
14,805
|
|
|
(280
|
)
|
|
49,807
|
|
||||||
Life science/healthcare
|
|
36,576
|
|
|
(3,001
|
)
|
|
676
|
|
|
8,550
|
|
|
(949
|
)
|
|
41,852
|
|
||||||
Premium wine
|
|
5,205
|
|
|
—
|
|
|
—
|
|
|
(426
|
)
|
|
31
|
|
|
4,810
|
|
||||||
Other
|
|
4,252
|
|
|
(30
|
)
|
|
673
|
|
|
4,431
|
|
|
154
|
|
|
9,480
|
|
||||||
Total commercial loans
|
|
207,445
|
|
|
(46,748
|
)
|
|
5,991
|
|
|
69,169
|
|
|
(1,808
|
)
|
|
234,049
|
|
||||||
Consumer loans
|
|
10,168
|
|
|
(102
|
)
|
|
83
|
|
|
505
|
|
|
20
|
|
|
10,674
|
|
||||||
Total allowance for loan losses
|
|
$
|
217,613
|
|
|
$
|
(46,850
|
)
|
|
$
|
6,074
|
|
|
$
|
69,674
|
|
|
$
|
(1,788
|
)
|
|
$
|
244,723
|
|
Six months ended June 30, 2015 (dollars in thousands)
|
|
Beginning Balance December 31, 2014
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for
(Reduction of) Loan Losses
|
|
Foreign Currency Translation Adjustments (1)
|
|
Ending Balance June 30, 2015
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software and internet
|
|
$
|
80,981
|
|
|
$
|
(2,165
|
)
|
|
$
|
1,044
|
|
|
$
|
26,869
|
|
|
$
|
(1
|
)
|
|
$
|
106,728
|
|
Hardware
|
|
25,860
|
|
|
(4,049
|
)
|
|
2,809
|
|
|
(4,221
|
)
|
|
73
|
|
|
20,472
|
|
||||||
Private equity/venture capital
|
|
27,997
|
|
|
—
|
|
|
—
|
|
|
1,381
|
|
|
(102
|
)
|
|
29,276
|
|
||||||
Life science/healthcare
|
|
15,208
|
|
|
(3,219
|
)
|
|
79
|
|
|
5,161
|
|
|
4
|
|
|
17,233
|
|
||||||
Premium wine
|
|
4,473
|
|
|
—
|
|
|
7
|
|
|
(71
|
)
|
|
—
|
|
|
4,409
|
|
||||||
Other
|
|
3,253
|
|
|
(788
|
)
|
|
556
|
|
|
2,933
|
|
|
(60
|
)
|
|
5,894
|
|
||||||
Total commercial loans
|
|
157,772
|
|
|
(10,221
|
)
|
|
4,495
|
|
|
32,052
|
|
|
(86
|
)
|
|
184,012
|
|
||||||
Consumer loans
|
|
7,587
|
|
|
—
|
|
|
132
|
|
|
913
|
|
|
—
|
|
|
8,632
|
|
||||||
Total allowance for loan losses
|
|
$
|
165,359
|
|
|
$
|
(10,221
|
)
|
|
$
|
4,627
|
|
|
$
|
32,965
|
|
|
$
|
(86
|
)
|
|
$
|
192,644
|
|
|
(1)
|
Reflects foreign currency translation adjustments within the allowance for loan losses. Prior period amounts were previously reported with loan recoveries and have been revised to conform to current period presentation.
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||
|
|
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
|
|
$
|
33,705
|
|
|
$
|
93,971
|
|
|
$
|
70,524
|
|
|
$
|
5,436,903
|
|
|
$
|
34,098
|
|
|
$
|
100,866
|
|
|
$
|
68,947
|
|
|
$
|
5,337,049
|
|
Hardware
|
|
2,327
|
|
|
22,751
|
|
|
21,544
|
|
|
1,100,682
|
|
|
3,160
|
|
|
27,736
|
|
|
19,925
|
|
|
1,043,792
|
|
||||||||
Private equity/venture capital
|
|
—
|
|
|
—
|
|
|
49,807
|
|
|
7,078,544
|
|
|
—
|
|
|
—
|
|
|
35,282
|
|
|
5,467,577
|
|
||||||||
Life science/healthcare
|
|
23,380
|
|
|
49,265
|
|
|
18,472
|
|
|
1,731,709
|
|
|
20,230
|
|
|
51,354
|
|
|
16,346
|
|
|
1,659,288
|
|
||||||||
Premium wine
|
|
130
|
|
|
1,296
|
|
|
4,680
|
|
|
827,940
|
|
|
90
|
|
|
2,065
|
|
|
5,115
|
|
|
845,230
|
|
||||||||
Other
|
|
5,047
|
|
|
5,467
|
|
|
4,433
|
|
|
497,054
|
|
|
52
|
|
|
520
|
|
|
4,200
|
|
|
435,270
|
|
||||||||
Total commercial loans
|
|
64,589
|
|
|
172,750
|
|
|
169,460
|
|
|
16,672,832
|
|
|
57,630
|
|
|
182,541
|
|
|
149,815
|
|
|
14,788,206
|
|
||||||||
Consumer loans
|
|
202
|
|
|
909
|
|
|
10,472
|
|
|
1,987,287
|
|
|
143
|
|
|
143
|
|
|
10,025
|
|
|
1,771,180
|
|
||||||||
Total
|
|
$
|
64,791
|
|
|
$
|
173,659
|
|
|
$
|
179,932
|
|
|
$
|
18,660,119
|
|
|
$
|
57,773
|
|
|
$
|
182,684
|
|
|
$
|
159,840
|
|
|
$
|
16,559,386
|
|
(Dollars in thousands)
|
|
Pass
|
|
Performing
(Criticized)
|
|
Performing
Impaired
(Criticized)
|
|
Nonperforming Impaired (Nonaccrual)
|
|
Total
|
||||||||||
June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software and internet
|
|
$
|
4,896,785
|
|
|
$
|
580,197
|
|
|
$
|
24,097
|
|
|
$
|
69,874
|
|
|
$
|
5,570,953
|
|
Hardware
|
|
958,512
|
|
|
150,311
|
|
|
22,694
|
|
|
57
|
|
|
1,131,574
|
|
|||||
Private equity/venture capital
|
|
7,129,763
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,129,763
|
|
|||||
Life science/healthcare
|
|
1,601,046
|
|
|
143,569
|
|
|
—
|
|
|
49,265
|
|
|
1,793,880
|
|
|||||
Premium wine
|
|
802,929
|
|
|
26,883
|
|
|
1,296
|
|
|
—
|
|
|
831,108
|
|
|||||
Other
|
|
491,745
|
|
|
8,646
|
|
|
467
|
|
|
5,000
|
|
|
505,858
|
|
|||||
Total commercial loans
|
|
15,880,780
|
|
|
909,606
|
|
|
48,554
|
|
|
124,196
|
|
|
16,963,136
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate secured loans
|
|
1,747,021
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
1,747,144
|
|
|||||
Other consumer loans
|
|
238,836
|
|
|
—
|
|
|
786
|
|
|
—
|
|
|
239,622
|
|
|||||
Total consumer loans
|
|
1,985,857
|
|
|
—
|
|
|
786
|
|
|
123
|
|
|
1,986,766
|
|
|||||
Total gross loans
|
|
$
|
17,866,637
|
|
|
$
|
909,606
|
|
|
$
|
49,340
|
|
|
$
|
124,319
|
|
|
$
|
18,949,902
|
|
December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software and internet
|
|
$
|
4,933,179
|
|
|
$
|
448,065
|
|
|
$
|
23,321
|
|
|
$
|
77,545
|
|
|
$
|
5,482,110
|
|
Hardware
|
|
955,675
|
|
|
96,820
|
|
|
27,306
|
|
|
430
|
|
|
1,080,231
|
|
|||||
Private equity/venture capital
|
|
5,474,929
|
|
|
37,000
|
|
|
—
|
|
|
—
|
|
|
5,511,929
|
|
|||||
Life science/healthcare
|
|
1,544,555
|
|
|
128,636
|
|
|
7,247
|
|
|
44,107
|
|
|
1,724,545
|
|
|||||
Premium wine
|
|
825,058
|
|
|
22,272
|
|
|
898
|
|
|
1,167
|
|
|
849,395
|
|
|||||
Other
|
|
429,481
|
|
|
8,868
|
|
|
520
|
|
|
—
|
|
|
438,869
|
|
|||||
Total commercial loans
|
|
14,162,877
|
|
|
741,661
|
|
|
59,292
|
|
|
123,249
|
|
|
15,087,079
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate secured loans
|
|
1,539,468
|
|
|
3,729
|
|
|
—
|
|
|
143
|
|
|
1,543,340
|
|
|||||
Other consumer loans
|
|
224,601
|
|
|
2,111
|
|
|
—
|
|
|
—
|
|
|
226,712
|
|
|||||
Total consumer loans
|
|
1,764,069
|
|
|
5,840
|
|
|
—
|
|
|
143
|
|
|
1,770,052
|
|
|||||
Total gross loans
|
|
$
|
15,926,946
|
|
|
$
|
747,501
|
|
|
$
|
59,292
|
|
|
$
|
123,392
|
|
|
$
|
16,857,131
|
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Loans modified in TDRs:
|
|
|
|
|
||||
Commercial loans:
|
|
|
|
|
||||
Software and internet
|
|
$
|
49,427
|
|
|
$
|
56,790
|
|
Hardware
|
|
107
|
|
|
473
|
|
||
Life science/healthcare
|
|
24,501
|
|
|
51,878
|
|
||
Premium wine
|
|
2,983
|
|
|
2,065
|
|
||
Other
|
|
467
|
|
|
519
|
|
||
Total commercial loans
|
|
77,485
|
|
|
111,725
|
|
||
Consumer loans:
|
|
|
|
|
||||
Other consumer loans
|
|
786
|
|
|
—
|
|
||
Total consumer loans
|
|
786
|
|
|
—
|
|
||
Total
|
|
$
|
78,271
|
|
|
$
|
111,725
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Loans modified in TDRs during the period:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
4,402
|
|
|
$
|
27,525
|
|
|
$
|
5,525
|
|
|
$
|
27,525
|
|
Hardware
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,040
|
|
||||
Premium wine
|
|
—
|
|
|
—
|
|
|
506
|
|
|
—
|
|
||||
Total commercial loans
|
|
4,402
|
|
|
27,525
|
|
|
6,031
|
|
|
29,565
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Other consumer loans
|
|
786
|
|
|
—
|
|
|
786
|
|
|
—
|
|
||||
Total consumer loans
|
|
786
|
|
|
—
|
|
|
786
|
|
|
—
|
|
||||
Total loans modified in TDRs during the period (1)
|
|
$
|
5,188
|
|
|
$
|
27,525
|
|
|
$
|
6,817
|
|
|
$
|
29,565
|
|
|
(1)
|
There were
$0.5 million
and
$4.3 million
of partial charge-offs during the
three and six months ended
June 30, 2016
and
no
partial charge-offs during the
three and six months ended
June 30, 2015
.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
TDRs modified within the previous 12 months that defaulted during the period:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software and internet
|
|
$
|
1,474
|
|
|
$
|
27,525
|
|
|
$
|
1,474
|
|
|
$
|
27,525
|
|
Premium wine
|
|
506
|
|
|
—
|
|
|
506
|
|
|
—
|
|
||||
Total TDRs modified within the previous 12 months that defaulted in the period
|
|
$
|
1,980
|
|
|
$
|
27,525
|
|
|
$
|
1,980
|
|
|
$
|
27,525
|
|
8.
|
Short-Term Borrowings and Long-Term Debt
|
|
|
|
|
|
|
Carrying Value
|
||||||||
(Dollars in thousands)
|
|
Maturity
|
|
Principal value at June 30, 2016
|
|
June 30,
2016 |
|
December 31,
2015 |
||||||
Short-term borrowings:
|
|
|
|
|
|
|
|
|
||||||
Short-term FHLB advances
|
|
July 5, 2016
|
|
$
|
500,000
|
|
|
$
|
500,000
|
|
|
$
|
638,000
|
|
Federal funds purchased
|
|
|
|
—
|
|
|
—
|
|
|
135,000
|
|
|||
Other short-term borrowings
|
|
(1)
|
|
3,219
|
|
|
3,219
|
|
|
1,900
|
|
|||
Total short-term borrowings
|
|
|
|
|
|
$
|
503,219
|
|
|
$
|
774,900
|
|
||
Long-term debt:
|
|
|
|
|
|
|
|
|
||||||
3.50% Senior Notes
|
|
January 29, 2025
|
|
$
|
350,000
|
|
|
$
|
346,822
|
|
|
$
|
346,667
|
|
5.375% Senior Notes
|
|
September 15, 2020
|
|
350,000
|
|
|
347,297
|
|
|
347,016
|
|
|||
6.05% Subordinated Notes (2)
|
|
June 1, 2017
|
|
45,964
|
|
|
47,628
|
|
|
48,350
|
|
|||
7.0% Junior Subordinated Debentures
|
|
October 15, 2033
|
|
50,000
|
|
|
54,582
|
|
|
54,669
|
|
|||
Total long-term debt
|
|
|
|
|
|
$
|
796,329
|
|
|
$
|
796,702
|
|
|
(1)
|
Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor.
|
(2)
|
At
June 30, 2016
and
December 31, 2015
, included in the carrying value of our 6.05% Subordinated Notes was an interest rate swap valued at
$1.9 million
and $
2.8 million
, respectively, related to hedge accounting associated with the notes.
|
9.
|
Derivative Financial Instruments
|
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||
(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
|
|
|
$
|
1,918
|
|
|
$
|
—
|
|
|
$
|
1,918
|
|
|
$
|
45,964
|
|
|
$
|
2,768
|
|
|
$
|
—
|
|
|
$
|
2,768
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Currency exchange risks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign exchange forwards
|
|
Other assets
|
|
41,845
|
|
|
1,546
|
|
|
1,230
|
|
|
316
|
|
|
49,287
|
|
|
809
|
|
|
—
|
|
|
809
|
|
||||||||
Foreign exchange forwards
|
|
Other liabilities
|
|
111,614
|
|
|
(1,028
|
)
|
|
—
|
|
|
(1,028
|
)
|
|
6,586
|
|
|
(669
|
)
|
|
—
|
|
|
(669
|
)
|
||||||||
Net exposure
|
|
|
|
|
|
518
|
|
|
1,230
|
|
|
(712
|
)
|
|
|
|
140
|
|
|
—
|
|
|
140
|
|
||||||||||
Other derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity warrant assets
|
|
Other assets
|
|
208,551
|
|
|
129,800
|
|
|
—
|
|
|
129,800
|
|
|
210,102
|
|
|
137,105
|
|
|
—
|
|
|
137,105
|
|
||||||||
Other derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Client foreign exchange forwards
|
|
Other assets
|
|
1,468,046
|
|
|
49,685
|
|
|
1,989
|
|
|
47,696
|
|
|
935,514
|
|
|
29,722
|
|
|
1,900
|
|
|
27,822
|
|
||||||||
Client foreign exchange forwards
|
|
Other liabilities
|
|
1,151,920
|
|
|
(42,898
|
)
|
|
—
|
|
|
(42,898
|
)
|
|
841,182
|
|
|
(24,978
|
)
|
|
—
|
|
|
(24,978
|
)
|
||||||||
Client foreign currency options
|
|
Other assets
|
|
102,017
|
|
|
1,614
|
|
|
—
|
|
|
1,614
|
|
|
46,625
|
|
|
706
|
|
|
—
|
|
|
706
|
|
||||||||
Client foreign currency options
|
|
Other liabilities
|
|
102,017
|
|
|
(1,614
|
)
|
|
—
|
|
|
(1,614
|
)
|
|
46,625
|
|
|
(706
|
)
|
|
—
|
|
|
(706
|
)
|
||||||||
Client interest rate derivatives
|
|
Other assets
|
|
349,123
|
|
|
8,554
|
|
|
—
|
|
|
8,554
|
|
|
422,741
|
|
|
3,973
|
|
|
—
|
|
|
3,973
|
|
||||||||
Client interest rate derivatives
|
|
Other liabilities
|
|
389,079
|
|
|
(9,655
|
)
|
|
—
|
|
|
(9,655
|
)
|
|
422,741
|
|
|
(4,384
|
)
|
|
—
|
|
|
(4,384
|
)
|
||||||||
Net exposure
|
|
|
|
|
|
5,686
|
|
|
1,989
|
|
|
3,697
|
|
|
|
|
4,333
|
|
|
1,900
|
|
|
2,433
|
|
||||||||||
Net
|
|
|
|
|
|
$
|
137,922
|
|
|
$
|
3,219
|
|
|
$
|
134,703
|
|
|
|
|
$
|
144,346
|
|
|
$
|
1,900
|
|
|
$
|
142,446
|
|
|
(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
June 30, 2016
remain at investment grade or higher and there were no material changes in their credit ratings during the
three and six months ended
June 30, 2016
.
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
Statement of income location
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate risks:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net cash benefit associated with interest rate swaps
|
|
Interest expense—borrowings
|
|
$
|
590
|
|
|
$
|
634
|
|
|
$
|
1,199
|
|
|
$
|
1,272
|
|
Changes in fair value of interest rate swaps
|
|
Gains on derivative instruments, net
|
|
(13
|
)
|
|
(11
|
)
|
|
(30
|
)
|
|
(14
|
)
|
||||
Net gains associated with interest rate risk derivatives
|
|
|
|
$
|
577
|
|
|
$
|
623
|
|
|
$
|
1,169
|
|
|
$
|
1,258
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Currency exchange risks:
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Losses) gains on revaluations of internal foreign currency instruments, net
|
|
Other noninterest income
|
|
$
|
(5,307
|
)
|
|
$
|
8,306
|
|
|
$
|
(2,816
|
)
|
|
$
|
(11,853
|
)
|
Gains (losses) on internal foreign exchange forward contracts, net
|
|
Gains on derivative instruments, net
|
|
3,923
|
|
|
(8,174
|
)
|
|
1,715
|
|
|
11,844
|
|
||||
Net (losses) gains associated with internal currency risk
|
|
|
|
$
|
(1,384
|
)
|
|
$
|
132
|
|
|
$
|
(1,101
|
)
|
|
$
|
(9
|
)
|
Other derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Losses) gains on revaluations of client foreign currency instruments, net
|
|
Other noninterest income
|
|
$
|
(133
|
)
|
|
$
|
(802
|
)
|
|
$
|
3,521
|
|
|
$
|
(178
|
)
|
Gains (losses) on client foreign exchange forward contracts, net
|
|
Gains on derivative instruments, net
|
|
68
|
|
|
787
|
|
|
(5,586
|
)
|
|
280
|
|
||||
Net (losses) gains associated with client currency risk
|
|
|
|
$
|
(65
|
)
|
|
$
|
(15
|
)
|
|
$
|
(2,065
|
)
|
|
$
|
102
|
|
Net gains on equity warrant assets
|
|
Gains on derivative instruments, net
|
|
$
|
5,089
|
|
|
$
|
23,616
|
|
|
$
|
11,694
|
|
|
$
|
43,894
|
|
Net (losses) gains on other derivatives
|
|
Gains on derivative instruments, net
|
|
$
|
(269
|
)
|
|
$
|
99
|
|
|
$
|
(690
|
)
|
|
$
|
42
|
|
|
|
|
|
|
|
|
|
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
|
||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
1,918
|
|
|
$
|
—
|
|
|
$
|
1,918
|
|
|
$
|
(1,918
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange forwards
|
|
51,231
|
|
|
—
|
|
|
51,231
|
|
|
(22,301
|
)
|
|
(3,219
|
)
|
|
25,711
|
|
||||||
Foreign currency options
|
|
1,614
|
|
|
—
|
|
|
1,614
|
|
|
(786
|
)
|
|
—
|
|
|
828
|
|
||||||
Client interest rate derivatives
|
|
8,554
|
|
|
—
|
|
|
8,554
|
|
|
(8,530
|
)
|
|
—
|
|
|
24
|
|
||||||
Total derivative assets:
|
|
63,317
|
|
|
—
|
|
|
63,317
|
|
|
(33,535
|
)
|
|
(3,219
|
)
|
|
26,563
|
|
||||||
Reverse repurchase, securities borrowing, and similar arrangements
|
|
316,059
|
|
|
—
|
|
|
316,059
|
|
|
(316,059
|
)
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
379,376
|
|
|
$
|
—
|
|
|
$
|
379,376
|
|
|
$
|
(349,594
|
)
|
|
$
|
(3,219
|
)
|
|
$
|
26,563
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
2,768
|
|
|
$
|
—
|
|
|
$
|
2,768
|
|
|
$
|
(2,768
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange forwards
|
|
30,531
|
|
|
—
|
|
|
30,531
|
|
|
(18,141
|
)
|
|
(1,900
|
)
|
|
10,490
|
|
||||||
Foreign currency options
|
|
711
|
|
|
(5
|
)
|
|
706
|
|
|
(706
|
)
|
|
—
|
|
|
—
|
|
||||||
Client interest rate derivatives
|
|
3,973
|
|
|
—
|
|
|
3,973
|
|
|
(3,973
|
)
|
|
—
|
|
|
—
|
|
||||||
Total derivative assets:
|
|
37,983
|
|
|
(5
|
)
|
|
37,978
|
|
|
(25,588
|
)
|
|
(1,900
|
)
|
|
10,490
|
|
||||||
Reverse repurchase, securities borrowing, and similar arrangements
|
|
125,391
|
|
|
—
|
|
|
125,391
|
|
|
(125,391
|
)
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
163,374
|
|
|
$
|
(5
|
)
|
|
$
|
163,369
|
|
|
$
|
(150,979
|
)
|
|
$
|
(1,900
|
)
|
|
$
|
10,490
|
|
|
|
|
|
|
|
|
|
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
|
||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange forwards
|
|
$
|
43,926
|
|
|
$
|
—
|
|
|
$
|
43,926
|
|
|
$
|
(25,658
|
)
|
|
$
|
—
|
|
|
$
|
18,268
|
|
Foreign currency options
|
|
1,614
|
|
|
—
|
|
|
1,614
|
|
|
(1,307
|
)
|
|
—
|
|
|
307
|
|
||||||
Client interest rate derivatives
|
|
9,655
|
|
|
—
|
|
|
9,655
|
|
|
(9,655
|
)
|
|
—
|
|
|
—
|
|
||||||
Total derivative liabilities:
|
|
55,195
|
|
|
—
|
|
|
55,195
|
|
|
(36,620
|
)
|
|
—
|
|
|
18,575
|
|
||||||
Repurchase, securities lending, and similar arrangements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
55,195
|
|
|
$
|
—
|
|
|
$
|
55,195
|
|
|
$
|
(36,620
|
)
|
|
$
|
—
|
|
|
$
|
18,575
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange forwards
|
|
$
|
25,647
|
|
|
$
|
—
|
|
|
$
|
25,647
|
|
|
$
|
(10,818
|
)
|
|
$
|
—
|
|
|
$
|
14,829
|
|
Foreign currency options
|
|
711
|
|
|
(5
|
)
|
|
706
|
|
|
—
|
|
|
—
|
|
|
706
|
|
||||||
Client interest rate derivatives
|
|
4,384
|
|
|
—
|
|
|
4,384
|
|
|
(4,384
|
)
|
|
—
|
|
|
—
|
|
||||||
Total derivative liabilities:
|
|
30,742
|
|
|
(5
|
)
|
|
30,737
|
|
|
(15,202
|
)
|
|
—
|
|
|
15,535
|
|
||||||
Repurchase, securities lending, and similar arrangements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
30,742
|
|
|
$
|
(5
|
)
|
|
$
|
30,737
|
|
|
$
|
(15,202
|
)
|
|
$
|
—
|
|
|
$
|
15,535
|
|
10.
|
Other Noninterest Income and Other Noninterest Expense
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Fund management fees
|
|
$
|
4,298
|
|
|
$
|
3,861
|
|
|
$
|
8,918
|
|
|
$
|
7,583
|
|
Service-based fee income
|
|
2,148
|
|
|
2,413
|
|
|
4,240
|
|
|
4,519
|
|
||||
(Losses) gains on revaluation of internal foreign currency instruments, net (1)
|
|
(5,307
|
)
|
|
8,306
|
|
|
(2,816
|
)
|
|
(11,853
|
)
|
||||
Other (2)
|
|
5,115
|
|
|
4,336
|
|
|
11,883
|
|
|
10,989
|
|
||||
Total other noninterest income
|
|
$
|
6,254
|
|
|
$
|
18,916
|
|
|
$
|
22,225
|
|
|
$
|
11,238
|
|
|
(1)
|
Represents the net revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash. We enter into internal foreign exchange forward contracts to economically reduce our foreign exchange exposure related to these foreign currency denominated financial instruments issued and held by us. The changes in the fair value of internal foreign exchange forward contracts
are included within noninterest in
come in the line item "Gains on derivative instruments, net".
|
(2)
|
Includes dividends on FHLB/FRB stock, correspondent bank rebate income and other fee income. Also included in this line item is the revaluation of client foreign currency denominated financial instruments. We enter into client foreign exchange forward contracts to economically reduce our foreign exchange exposure related to client foreign currency denominated financial instruments. The changes in the fair value of client foreign exchange forward contracts
are included within noninterest in
come in the line item "Gains on derivative instruments, net".
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Lending and other client related processing costs
|
|
$
|
3,541
|
|
|
$
|
3,704
|
|
|
$
|
7,836
|
|
|
$
|
7,253
|
|
Telephone
|
|
2,416
|
|
|
2,544
|
|
|
4,649
|
|
|
4,503
|
|
||||
Data processing services
|
|
2,387
|
|
|
1,358
|
|
|
4,216
|
|
|
3,191
|
|
||||
Postage and supplies
|
|
784
|
|
|
727
|
|
|
1,574
|
|
|
1,492
|
|
||||
Dues and publications
|
|
647
|
|
|
697
|
|
|
1,449
|
|
|
1,282
|
|
||||
Other
|
|
4,191
|
|
|
5,279
|
|
|
9,035
|
|
|
10,110
|
|
||||
Total other noninterest expense
|
|
$
|
13,966
|
|
|
$
|
14,309
|
|
|
$
|
28,759
|
|
|
$
|
27,831
|
|
11.
|
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 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.
|
◦
|
Our
Wine
practice provides banking products and services to our premium wine industry clients, including vineyard development loans.
|
◦
|
SVB Analytics
provides equity valuation services to companies and private equity/venture capital firms.
|
◦
|
Debt Fund Investments
is comprised of our investments in certain debt funds in which we are a strategic investor.
|
•
|
SVB Private Bank
is the private banking division of the Bank, which provides a range of personal financial solutions for consumers. Our clients are primarily private equity/venture capital professionals and executive leaders of the innovation companies they support. We offer a customized suite of private banking services, including mortgages, home equity lines of credit, restricted stock purchase loans, capital call lines of credit and other secured and unsecured lending, as well as cash and wealth management services.
|
•
|
SVB Capital
is the venture capital investment arm of SVBFG, which focuses primarily on funds management. SVB Capital manages funds (primarily venture capital funds) on behalf of third party limited partners and, on a more limited basis, SVB Financial Group. The SVB Capital family of funds is comprised of direct venture funds that invest in companies and funds of funds that invest in other venture capital funds. SVB Capital generates income for the Company primarily from investment returns (including carried interest) and management fees.
|
(Dollars in thousands)
|
|
Global
Commercial
Bank (1)
|
|
SVB Private
Bank
|
|
SVB Capital (1)
|
|
Other Items (2)
|
|
Total
|
||||||||||
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (expense)
|
|
$
|
254,680
|
|
|
$
|
13,538
|
|
|
$
|
(52
|
)
|
|
$
|
15,170
|
|
|
$
|
283,336
|
|
(Provision for) reduction of loan losses
|
|
(36,454
|
)
|
|
121
|
|
|
—
|
|
|
—
|
|
|
(36,333
|
)
|
|||||
Noninterest income
|
|
77,310
|
|
|
762
|
|
|
11,420
|
|
|
23,284
|
|
|
112,776
|
|
|||||
Noninterest expense (3)
|
|
(147,423
|
)
|
|
(2,954
|
)
|
|
(3,684
|
)
|
|
(46,291
|
)
|
|
(200,352
|
)
|
|||||
Income (loss) before income tax expense (4)
|
|
$
|
148,113
|
|
|
$
|
11,467
|
|
|
$
|
7,684
|
|
|
$
|
(7,837
|
)
|
|
$
|
159,427
|
|
Total average loans, net of unearned income
|
|
$
|
16,026,605
|
|
|
$
|
1,986,659
|
|
|
$
|
—
|
|
|
$
|
185,995
|
|
|
$
|
18,199,259
|
|
Total average assets (5)
|
|
40,703,091
|
|
|
2,007,009
|
|
|
331,500
|
|
|
328,430
|
|
|
43,370,030
|
|
|||||
Total average deposits
|
|
36,690,002
|
|
|
1,115,599
|
|
|
—
|
|
|
354,358
|
|
|
38,159,959
|
|
|||||
Three months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
203,931
|
|
|
$
|
11,109
|
|
|
$
|
1
|
|
|
$
|
28,730
|
|
|
$
|
243,771
|
|
Provision for loan losses
|
|
(25,592
|
)
|
|
(921
|
)
|
|
—
|
|
|
—
|
|
|
(26,513
|
)
|
|||||
Noninterest income
|
|
66,031
|
|
|
595
|
|
|
19,909
|
|
|
39,752
|
|
|
126,287
|
|
|||||
Noninterest expense (3)
|
|
(145,339
|
)
|
|
(3,231
|
)
|
|
(3,704
|
)
|
|
(41,838
|
)
|
|
(194,112
|
)
|
|||||
Income before income tax expense (4)
|
|
$
|
99,031
|
|
|
$
|
7,552
|
|
|
$
|
16,206
|
|
|
$
|
26,644
|
|
|
$
|
149,433
|
|
Total average loans, net of unearned income
|
|
$
|
12,607,066
|
|
|
$
|
1,541,016
|
|
|
$
|
—
|
|
|
$
|
172,793
|
|
|
$
|
14,320,875
|
|
Total average assets (5)
|
|
37,033,535
|
|
|
1,536,508
|
|
|
330,016
|
|
|
542,764
|
|
|
39,442,823
|
|
|||||
Total average deposits
|
|
33,713,123
|
|
|
1,084,632
|
|
|
—
|
|
|
158,312
|
|
|
34,956,067
|
|
|||||
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (expense)
|
|
$
|
510,858
|
|
|
$
|
27,210
|
|
|
$
|
(52
|
)
|
|
$
|
26,741
|
|
|
$
|
564,757
|
|
Provision for loan losses
|
|
(69,169
|
)
|
|
(505
|
)
|
|
—
|
|
|
—
|
|
|
(69,674
|
)
|
|||||
Noninterest income
|
|
152,069
|
|
|
1,389
|
|
|
13,873
|
|
|
31,579
|
|
|
198,910
|
|
|||||
Noninterest expense (3)
|
|
(301,629
|
)
|
|
(6,359
|
)
|
|
(7,597
|
)
|
|
(88,800
|
)
|
|
(404,385
|
)
|
|||||
Income (loss) before income tax expense (4)
|
|
$
|
292,129
|
|
|
$
|
21,735
|
|
|
$
|
6,224
|
|
|
$
|
(30,480
|
)
|
|
$
|
289,608
|
|
Total average loans, net of unearned income
|
|
$
|
15,473,170
|
|
|
$
|
1,929,239
|
|
|
$
|
—
|
|
|
$
|
203,438
|
|
|
$
|
17,605,847
|
|
Total average assets (5)
|
|
41,118,263
|
|
|
1,933,123
|
|
|
340,256
|
|
|
388,468
|
|
|
43,780,110
|
|
|||||
Total average deposits
|
|
37,263,823
|
|
|
1,123,167
|
|
|
—
|
|
|
327,054
|
|
|
38,714,044
|
|
|||||
Six months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
407,680
|
|
|
$
|
20,832
|
|
|
$
|
2
|
|
|
$
|
54,182
|
|
|
$
|
482,696
|
|
Provision for loan losses
|
|
(32,052
|
)
|
|
(913
|
)
|
|
—
|
|
|
—
|
|
|
(32,965
|
)
|
|||||
Noninterest income
|
|
129,224
|
|
|
992
|
|
|
40,587
|
|
|
79,008
|
|
|
249,811
|
|
|||||
Noninterest expense (3)
|
|
(283,787
|
)
|
|
(6,107
|
)
|
|
(7,190
|
)
|
|
(87,569
|
)
|
|
(384,653
|
)
|
|||||
Income before income tax expense (4)
|
|
$
|
221,065
|
|
|
$
|
14,804
|
|
|
$
|
33,399
|
|
|
$
|
45,621
|
|
|
$
|
314,889
|
|
Total average loans, net of unearned income
|
|
$
|
12,556,506
|
|
|
$
|
1,457,547
|
|
|
$
|
—
|
|
|
$
|
171,280
|
|
|
$
|
14,185,333
|
|
Total average assets (5)
|
|
36,311,405
|
|
|
1,457,570
|
|
|
335,690
|
|
|
730,791
|
|
|
38,835,456
|
|
|||||
Total average deposits
|
|
33,094,710
|
|
|
1,167,823
|
|
|
—
|
|
|
149,640
|
|
|
34,412,173
|
|
|
(1)
|
Global Commercial Bank’s and SVB Capital’s components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. Noncontrolling interest is included within "Other Items".
|
(2)
|
The "Other Items" column reflects the adjustments necessary to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Net interest income is attributable primarily to interest earned from our fixed income investment portfolio, net of FTP. Noninterest income is attributable primarily to noncontrolling interests and gains on equity warrant assets. Noninterest expense consists primarily of expenses associated with corporate support functions such as finance, human resources, marketing, legal and other expenses.
|
(3)
|
The Global Commercial Bank segment includes direct depreciation and amortization of
$6.2 million
and
$4.7 million
for the three months ended
June 30, 2016
and
2015
, respectively and
$11.9 million
and
$10.0 million
for the six months ended
June 30, 2016
and
2015
, respectively.
|
(4)
|
The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates.
|
(5)
|
Total average assets equal the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for each segment to reconcile the results to the consolidated financial statements prepared in conformity with GAAP.
|
12.
|
Off-Balance Sheet Arrangements, Guarantees and Other Commitments
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Loan commitments available for funding: (1)
|
|
|
|
|
||||
Fixed interest rate commitments
|
|
$
|
1,302,359
|
|
|
$
|
1,312,734
|
|
Variable interest rate commitments
|
|
12,473,768
|
|
|
12,822,461
|
|
||
Total loan commitments available for funding
|
|
13,776,127
|
|
|
14,135,195
|
|
||
Commercial and standby letters of credit (2)
|
|
1,726,361
|
|
|
1,479,164
|
|
||
Total unfunded credit commitments
|
|
$
|
15,502,488
|
|
|
$
|
15,614,359
|
|
Commitments unavailable for funding (3)
|
|
$
|
2,001,114
|
|
|
$
|
2,026,532
|
|
Maximum lending limits for accounts receivable factoring arrangements (4)
|
|
878,460
|
|
|
1,006,404
|
|
||
Reserve for unfunded credit commitments (5)
|
|
34,889
|
|
|
34,415
|
|
|
(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
|
|
$
|
1,589,967
|
|
|
$
|
41,490
|
|
|
$
|
1,631,457
|
|
|
$
|
1,631,457
|
|
Performance standby letters of credit
|
|
73,261
|
|
|
10,756
|
|
|
84,017
|
|
|
84,017
|
|
||||
Commercial letters of credit
|
|
10,887
|
|
|
—
|
|
|
10,887
|
|
|
10,887
|
|
||||
Total
|
|
$
|
1,674,115
|
|
|
$
|
52,246
|
|
|
$
|
1,726,361
|
|
|
$
|
1,726,361
|
|
Our Ownership in Venture Capital and Private Equity Funds
(Dollars in thousands)
|
|
SVBFG Capital Commitments
|
|
SVBFG Unfunded
Commitments
|
|
SVBFG Ownership
of each Fund (4)
|
|||||
Silicon Valley BancVentures, LP
|
|
$
|
6,000
|
|
|
$
|
270
|
|
|
10.7
|
%
|
SVB Capital Partners II, LP (1)
|
|
1,200
|
|
|
162
|
|
|
5.1
|
|
||
SVB Capital Shanghai Yangpu Venture Capital Fund
|
|
874
|
|
|
—
|
|
|
6.8
|
|
||
SVB Strategic Investors Fund, LP
|
|
15,300
|
|
|
688
|
|
|
12.6
|
|
||
SVB Strategic Investors Fund II, LP
|
|
15,000
|
|
|
1,050
|
|
|
8.6
|
|
||
SVB Strategic Investors Fund III, LP
|
|
15,000
|
|
|
1,275
|
|
|
5.9
|
|
||
SVB Strategic Investors Fund IV, LP
|
|
12,239
|
|
|
2,325
|
|
|
5.0
|
|
||
Strategic Investors Fund V funds
|
|
515
|
|
|
142
|
|
|
Various
|
|
||
SVB Capital Preferred Return Fund, LP
|
|
12,688
|
|
|
—
|
|
|
20.0
|
|
||
SVB Capital—NT Growth Partners, LP
|
|
24,670
|
|
|
1,340
|
|
|
33.0
|
|
||
Other private equity fund (2)
|
|
9,338
|
|
|
—
|
|
|
58.2
|
|
||
Debt funds
|
|
58,486
|
|
|
—
|
|
|
Various
|
|
||
Other fund investments (3)
|
|
298,994
|
|
|
13,847
|
|
|
Various
|
|
||
Total
|
|
$
|
470,304
|
|
|
$
|
21,099
|
|
|
|
|
(1)
|
Our ownership includes direct ownership of
1.3
percent and indirect ownership interest 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
270
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 Item 1 of Part I of our 2015 Form 10-K.
|
Limited Partnership
(Dollars in thousands)
|
|
Unfunded Commitments
|
||
SVB Strategic Investors Fund, LP
|
|
$
|
1,563
|
|
SVB Capital Preferred Return Fund, LP
|
|
2,430
|
|
|
SVB Capital—NT Growth Partners, LP
|
|
2,309
|
|
|
Total
|
|
$
|
6,302
|
|
13.
|
Income Taxes
|
14.
|
Fair Value of Financial Instruments
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at
June 30, 2016
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
8,977,098
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,977,098
|
|
U.S. agency debentures
|
|
—
|
|
|
2,336,602
|
|
|
—
|
|
|
2,336,602
|
|
||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
—
|
|
|
1,206,294
|
|
|
—
|
|
|
1,206,294
|
|
||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
—
|
|
|
537,697
|
|
|
—
|
|
|
537,697
|
|
||||
Equity securities
|
|
316
|
|
|
610
|
|
|
—
|
|
|
926
|
|
||||
Total available-for-sale securities
|
|
8,977,414
|
|
|
4,081,203
|
|
|
—
|
|
|
13,058,617
|
|
||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Non-marketable securities:
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments measured at net asset value (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144,227
|
|
||||
Other venture capital investments (2)
|
|
—
|
|
|
—
|
|
|
2,040
|
|
|
2,040
|
|
||||
Other securities (2)
|
|
280
|
|
|
—
|
|
|
—
|
|
|
280
|
|
||||
Total non-marketable and other securities (fair value accounting)
|
|
280
|
|
|
—
|
|
|
2,040
|
|
|
146,547
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
1,918
|
|
|
—
|
|
|
1,918
|
|
||||
Foreign exchange forward and option contracts
|
|
—
|
|
|
52,845
|
|
|
—
|
|
|
52,845
|
|
||||
Equity warrant assets
|
|
—
|
|
|
1,989
|
|
|
127,811
|
|
|
129,800
|
|
||||
Client interest rate derivatives
|
|
—
|
|
|
8,554
|
|
|
—
|
|
|
8,554
|
|
||||
Total assets
|
|
$
|
8,977,694
|
|
|
$
|
4,146,509
|
|
|
$
|
129,851
|
|
|
$
|
13,398,281
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward and option contracts
|
|
$
|
—
|
|
|
$
|
45,540
|
|
|
$
|
—
|
|
|
$
|
45,540
|
|
Client interest rate derivatives
|
|
—
|
|
|
9,655
|
|
|
—
|
|
|
9,655
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
55,195
|
|
|
$
|
—
|
|
|
$
|
55,195
|
|
|
(1)
|
In accordance with the accounting standard (ASU 2015-07, Fair Value Measurement (Topic 820)), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.
|
(2)
|
Included in Level 1 and Level 3 assets are
$0.2 million
and
$1.8 million
, 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, 2015
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
11,678,035
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,678,035
|
|
U.S. agency debentures
|
|
—
|
|
|
2,690,029
|
|
|
—
|
|
|
2,690,029
|
|
||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
—
|
|
|
1,399,279
|
|
|
—
|
|
|
1,399,279
|
|
||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
—
|
|
|
607,936
|
|
|
—
|
|
|
607,936
|
|
||||
Equity securities
|
|
4,517
|
|
|
952
|
|
|
—
|
|
|
5,469
|
|
||||
Total available-for-sale securities
|
|
11,682,552
|
|
|
4,698,196
|
|
|
—
|
|
|
16,380,748
|
|
||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Non-marketable securities:
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments measured at net asset value (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
152,237
|
|
||||
Other venture capital investments (2)
|
|
—
|
|
|
—
|
|
|
2,040
|
|
|
2,040
|
|
||||
Other securities (2)
|
|
548
|
|
|
—
|
|
|
—
|
|
|
548
|
|
||||
Total non-marketable and other securities (fair value accounting)
|
|
548
|
|
|
—
|
|
|
2,040
|
|
|
154,825
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
2,768
|
|
|
—
|
|
|
2,768
|
|
||||
Foreign exchange forward and option contracts
|
|
—
|
|
|
31,237
|
|
|
—
|
|
|
31,237
|
|
||||
Equity warrant assets
|
|
—
|
|
|
1,937
|
|
|
135,168
|
|
|
137,105
|
|
||||
Client interest rate derivatives
|
|
—
|
|
|
3,973
|
|
|
—
|
|
|
3,973
|
|
||||
Total assets (2)
|
|
$
|
11,683,100
|
|
|
$
|
4,738,111
|
|
|
$
|
137,208
|
|
|
$
|
16,710,656
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward and option contracts
|
|
$
|
—
|
|
|
$
|
26,353
|
|
|
$
|
—
|
|
|
$
|
26,353
|
|
Client interest rate derivatives
|
|
—
|
|
|
4,384
|
|
|
—
|
|
|
4,384
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
30,737
|
|
|
$
|
—
|
|
|
$
|
30,737
|
|
|
(1)
|
In accordance with the accounting standard (ASU 2015-07, Fair Value Measurement (Topic 820)), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.
|
(2)
|
Included in Level 1 and Level 3 assets are
$0.4 million
and
$1.8 million
, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.
|
(Dollars in thousands)
|
|
Beginning
Balance
|
|
Total Realized and Unrealized Gains (Losses) Included in Income
|
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Distributions and Other Settlements
|
|
Transfers Out of Level 3
|
|
Ending
Balance
|
||||||||||||||||
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other venture capital investments (1)
|
|
$
|
2,040
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
2,040
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity warrant assets (2)
|
|
128,982
|
|
|
4,843
|
|
|
—
|
|
|
(8,178
|
)
|
|
2,218
|
|
|
—
|
|
|
(54
|
)
|
|
127,811
|
|
||||||||
Total assets
|
|
$
|
131,022
|
|
|
$
|
4,848
|
|
|
$
|
—
|
|
|
$
|
(8,178
|
)
|
|
$
|
2,218
|
|
|
$
|
(5
|
)
|
|
$
|
(54
|
)
|
|
$
|
129,851
|
|
Three months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other venture capital investments (1)
|
|
$
|
3,390
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,390
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity warrant assets (2)
|
|
122,261
|
|
|
23,249
|
|
|
—
|
|
|
(27,393
|
)
|
|
2,811
|
|
|
—
|
|
|
(891
|
)
|
|
120,037
|
|
||||||||
Total assets
|
|
$
|
125,651
|
|
|
$
|
23,249
|
|
|
$
|
—
|
|
|
$
|
(27,393
|
)
|
|
$
|
2,811
|
|
|
$
|
—
|
|
|
$
|
(891
|
)
|
|
$
|
123,427
|
|
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other venture capital investments (1)
|
|
$
|
2,040
|
|
|
$
|
(25
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
2,040
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity warrant assets (2)
|
|
135,168
|
|
|
12,022
|
|
|
—
|
|
|
(23,594
|
)
|
|
4,592
|
|
|
—
|
|
|
(377
|
)
|
|
127,811
|
|
||||||||
Total assets
|
|
$
|
137,208
|
|
|
$
|
11,997
|
|
|
$
|
—
|
|
|
$
|
(23,594
|
)
|
|
$
|
4,592
|
|
|
$
|
25
|
|
|
$
|
(377
|
)
|
|
$
|
129,851
|
|
Six months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other venture capital investments (1)
|
|
$
|
3,291
|
|
|
$
|
131
|
|
|
$
|
—
|
|
|
$
|
(32
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,390
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity warrant assets (2)
|
|
114,698
|
|
|
43,333
|
|
|
—
|
|
|
(42,158
|
)
|
|
5,298
|
|
|
—
|
|
|
(1,134
|
)
|
|
120,037
|
|
||||||||
Total assets
|
|
$
|
117,989
|
|
|
$
|
43,464
|
|
|
$
|
—
|
|
|
$
|
(42,190
|
)
|
|
$
|
5,298
|
|
|
$
|
—
|
|
|
$
|
(1,134
|
)
|
|
$
|
123,427
|
|
|
(1)
|
Realized and unrealized gains (losses) are recorded in the line item “Gains on investment securities, net”, a component of noninterest income.
|
(2)
|
Realized and unrealized gains (losses) are recorded in the line item “Gains on derivative instruments, net”, a component of noninterest income.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Other venture capital investments (1)
|
|
$
|
—
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
158
|
|
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Equity warrant assets (2)
|
|
7,624
|
|
|
6,437
|
|
|
8,856
|
|
|
14,809
|
|
||||
Total unrealized gains, net
|
|
$
|
7,624
|
|
|
$
|
6,496
|
|
|
$
|
8,856
|
|
|
$
|
14,967
|
|
Unrealized gains attributable to noncontrolling interests
|
|
$
|
—
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
(1)
|
Unrealized gains (losses) are recorded in the line item “Gains
on investment securities, net
”, a component of noninterest income.
|
(2)
|
Unrealized gains (losses) are recorded in 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
|
|||
June 30, 2016:
|
|
|
|
|
|
|
|
|
|||
Other venture capital investments (fair value accounting)
|
|
$
|
2,040
|
|
|
Private company equity pricing
|
|
(1)
|
|
(1
|
)
|
Equity warrant assets (public portfolio)
|
|
5,446
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
37.7
|
%
|
|
|
|
|
|
Risk-Free interest rate
|
|
1.1
|
%
|
||||
|
|
|
|
Sales restrictions discount (2)
|
|
19.6
|
%
|
||||
Equity warrant assets (private portfolio)
|
|
122,365
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
36.7
|
%
|
|
|
|
|
|
Risk-Free interest rate
|
|
0.6
|
%
|
||||
|
|
|
|
Marketability discount (3)
|
|
17.6
|
%
|
||||
|
|
|
|
Remaining life assumption (4)
|
|
45.0
|
%
|
||||
December 31, 2015:
|
|
|
|
|
|
|
|
|
|||
Other venture capital investments (fair value accounting)
|
|
$
|
2,040
|
|
|
Private company equity pricing
|
|
(1)
|
|
(1
|
)
|
Equity warrant assets (public portfolio)
|
|
1,786
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
38.1
|
%
|
|
|
|
|
|
Risk-Free interest rate
|
|
2.1
|
%
|
||||
|
|
|
|
Sales restrictions discount (2)
|
|
18.0
|
%
|
||||
Equity warrant assets (private portfolio)
|
|
133,382
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
36.0
|
%
|
|
|
|
|
|
Risk-Free interest rate
|
|
1.1
|
%
|
||||
|
|
|
|
Marketability discount (3)
|
|
16.6
|
%
|
||||
|
|
|
|
Remaining life assumption (4)
|
|
45.0
|
%
|
|
(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%
to
20%
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 upon various option-pricing models. 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 estimate of the actual remaining life, which we determine by utilizing historical data on cancellations and exercises. At
June 30, 2016
, the weighted average contractual remaining term was
5.8
years, compared to our estimated remaining life of
2.6
years. On a quarterly basis, a sensitivity analysis is performed on our remaining life assumption.
|
|
|
|
|
Estimated Fair Value
|
||||||||||||||||
(Dollars in thousands)
|
|
Carrying Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
1,854,457
|
|
|
$
|
1,854,457
|
|
|
$
|
1,854,457
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Held-to-maturity securities
|
|
8,200,443
|
|
|
8,322,048
|
|
|
—
|
|
|
8,322,048
|
|
|
—
|
|
|||||
Non-marketable securities (cost and equity method accounting) not measured at net asset value
|
|
121,864
|
|
|
124,662
|
|
|
—
|
|
|
—
|
|
|
124,662
|
|
|||||
Non-marketable securities (cost and equity method accounting) measured at net asset value (1)
|
|
241,845
|
|
|
352,348
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net commercial loans
|
|
16,611,533
|
|
|
16,701,555
|
|
|
—
|
|
|
—
|
|
|
16,701,555
|
|
|||||
Net consumer loans
|
|
1,977,522
|
|
|
1,960,486
|
|
|
—
|
|
|
—
|
|
|
1,960,486
|
|
|||||
FHLB and Federal Reserve Bank stock
|
|
63,166
|
|
|
63,166
|
|
|
—
|
|
|
—
|
|
|
63,166
|
|
|||||
Accrued interest receivable
|
|
107,323
|
|
|
107,323
|
|
|
—
|
|
|
107,323
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term FHLB advances
|
|
500,000
|
|
|
500,000
|
|
|
500,000
|
|
|
—
|
|
|
—
|
|
|||||
Other short-term borrowings
|
|
3,219
|
|
|
3,219
|
|
|
3,219
|
|
|
—
|
|
|
—
|
|
|||||
Non-maturity deposits (2)
|
|
37,544,257
|
|
|
37,544,257
|
|
|
37,544,257
|
|
|
—
|
|
|
—
|
|
|||||
Time deposits
|
|
52,310
|
|
|
52,223
|
|
|
—
|
|
|
52,223
|
|
|
—
|
|
|||||
3.50% Senior Notes
|
|
346,822
|
|
|
357,172
|
|
|
—
|
|
|
357,172
|
|
|
—
|
|
|||||
5.375% Senior Notes
|
|
347,297
|
|
|
390,667
|
|
|
—
|
|
|
390,667
|
|
|
—
|
|
|||||
6.05% Subordinated Notes (3)
|
|
47,628
|
|
|
49,639
|
|
|
—
|
|
|
49,639
|
|
|
—
|
|
|||||
7.0% Junior Subordinated Debentures
|
|
54,582
|
|
|
54,804
|
|
|
—
|
|
|
54,804
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
12,009
|
|
|
12,009
|
|
|
—
|
|
|
12,009
|
|
|
—
|
|
|
(1)
|
In accordance with the accounting standard (ASU 2015-07, Fair Value Measurement (Topic 820)), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
|
(2)
|
Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits.
|
(3)
|
At
June 30, 2016
and
December 31, 2015
, included in the carrying value and estimated fair value of our 6.05% Subordinated Notes was an interest rate swap valued at
$1.9 million
and
$2.8 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)
|
|
$
|
144,227
|
|
|
$
|
144,227
|
|
|
$
|
6,302
|
|
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (2)
|
|
82,214
|
|
|
82,214
|
|
|
4,954
|
|
|||
Debt funds (2)
|
|
19,239
|
|
|
20,473
|
|
|
—
|
|
|||
Other investments (2)
|
|
23,013
|
|
|
23,013
|
|
|
886
|
|
|||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (2)
|
|
117,379
|
|
|
226,648
|
|
|
12,364
|
|
|||
Total
|
|
$
|
386,072
|
|
|
$
|
496,575
|
|
|
$
|
24,506
|
|
|
(1)
|
Venture capital and private equity fund investments within non-marketable securities (fair value accounting) include investments made by our managed funds of funds and one of our direct venture funds. These investments represent investments in venture capital and private equity funds that invest primarily in U.S. and global technology and life science/healthcare companies. Included in the fair value and unfunded commitments of fund investments under fair value accounting are
$102 million
and
$5 million
, respectively, attributable to noncontrolling interests. It is estimated that we will receive distributions from the fund investments over the next
10
to
13
years, depending on the age of the funds and any potential extensions of terms of the funds.
|
(2)
|
Venture capital and private equity fund investments, debt funds, and other fund investments within non-marketable securities (equity and cost method accounting) include funds that invest in or lend money to primarily U.S. and global technology and life science/healthcare companies. It is estimated that we will receive distributions from the funds over the next
10
to
13
years, depending on the age of the funds and any potential extensions of the terms of the funds.
|
15.
|
Legal Matters
|
16.
|
Related Parties
|
•
|
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
|
•
|
Descriptions of our strategic initiatives, plans or objectives for future operations, including pending sales or acquisitions
|
•
|
Forecasts of private equity/venture capital funding and investment levels
|
•
|
Forecasts of future interest rates, economic performance, and income from investments
|
•
|
Forecasts of expected levels of provisions for loan losses, nonperforming loans, loan growth and client funds
|
•
|
Descriptions of assumptions underlying or relating to any of the foregoing
|
•
|
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
|
•
|
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
|
•
|
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
|
•
|
Business disruptions and interruptions due to natural disasters and other external events
|
•
|
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, and the impact of internal market and economic events on us, such as the expected withdrawal of the United Kingdom from the European Union (aka "Brexit")
|
•
|
The impact of legal requirements and regulations limiting or restricting our activities or resulting in higher costs, including the Dodd-Frank Act, the Volcker Rule and Federal Reserve and other regulatory requirements
|
•
|
The impact of lawsuits and claims
|
•
|
Changes in accounting standards and tax laws
|
•
|
The levels of equity capital available to our client or portfolio companies
|
•
|
The effectiveness of our risk management framework and quantitative models
|
•
|
The sale of impaired assets
|
•
|
Our ability to maintain or increase our market share, including through successfully implementing our business strategy and undertaking new business initiatives
|
•
|
Other factors as discussed in “Risk Factors” under Part I, Item 1A in our
2015
Form 10-K
|
BALANCE SHEET
|
|
EARNINGS
|
Assets
. $43.4 billion in average total assets (up 10.0%). $43.1 billion in period end total assets (up 7.2%).
Investments
. $21.8 billion in average investment securities (up 1.6%). $21.9 billion in period-end investments securities (down 4.2%).
Loans
. $18.2 billion in average total loan balances, net of unearned income (up 27.1%). $18.8 billion in period-end total loan balances, net of unearned income (up 32.1%).
Deposits
. $38.2 billion in average total deposit balances (up 9.2%). $37.6 billion in period-end total deposit balances (up 5.5%).
Off-Balance Sheet Client Investment Funds
. $42.9 billion in total average client investment fund balances (up 13.2%). $43.1 billion in total period-end client investment fund balances (up 7.5%).
|
|
EPS
. Earnings per diluted share of $1.78 (up 7.2%).
Net income
. Consolidated net income available to common stockholders of $93.0 million (up 7.9%).
- Net interest income of $283.3 million (up 16.2%).
- Net interest margin of 2.73% (up 15 bps).
- Noninterest income of $112.8 million (down 10.7%), with non-GAAP core fee income
+
(fee income for deposit services, letters of credit, business credit cards, client investments, foreign exchange and lending-related activities) of $74.5 million (up 12.7%).
- Noninterest expense of $200.4 million (up 3.2%)
ROE
. Return on average equity (annualized) (“
ROE
”) performance of 10.8%.
|
|
|
|
CAPITAL
|
|
CREDIT QUALITY
|
Capital/Liquidity
. Continued strong capital and liquidity levels, with all capital ratios considered "well-capitalized" under banking regulations. SVBFG and SVB Capital ratios, respectively, were:
- CET 1 risk-based capital ratio of 12.43% and 12.57%.
- Tier 1 risk-based capital ratio of 12.89% and 12.57%.
- Total risk-based capital ratio of 13.92% and 13.65%.
- Tier 1 leverage ratio of 8.08% and 7.56%.
|
|
Credit Quality
. Continued disciplined underwriting.
- Allowance for loan losses of 1.29% as a percentage of period-end total gross loans.
- Provision for loan losses of 0.77% as a percentage of period-end total gross loans (annualized).
- Net loan charge-offs of 0.43% as a percentage of average total gross loans (annualized).
|
|
(1)
|
See “Results of Operations–Noninterest Income” for a description and reconciliation of non-GAAP core fee income and noninterest income.
|
(2)
|
See “Results of Operations–Noninterest Expense” for a description and reconciliation of non-GAAP noninterest expense and non-GAAP operating efficiency ratio.
|
(3)
|
Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and year-to-date average assets.
|
(4)
|
Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and year-to-date average SVBFG stockholders’ equity.
|
(5)
|
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.
|
(6)
|
The operating efficiency ratio is calculated by dividing total noninterest expense by total taxable-equivalent net interest income plus noninterest income.
|
(7)
|
Book value per common share is calculated by dividing total SVBFG stockholders’ equity by total outstanding common shares at period-end.
|
|
|
2016 Compared to 2015
|
|
2016 Compared to 2015
|
||||||||||||||||||||
|
|
Three months ended June 30, increase (decrease) due to change in
|
|
Six months ended June 30, increase (decrease) due to change in
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell, trade receivables purchased and other short-term investment securities
|
|
$
|
(284
|
)
|
|
$
|
491
|
|
|
$
|
207
|
|
|
$
|
264
|
|
|
$
|
744
|
|
|
$
|
1,008
|
|
Fixed income investment portfolio (taxable)
|
|
797
|
|
|
1,193
|
|
|
1,990
|
|
|
8,388
|
|
|
3,378
|
|
|
11,766
|
|
||||||
Fixed income investment portfolio (non-taxable)
|
|
(292
|
)
|
|
35
|
|
|
(257
|
)
|
|
(574
|
)
|
|
47
|
|
|
(527
|
)
|
||||||
Loans, net of unearned income
|
|
43,366
|
|
|
(5,331
|
)
|
|
38,035
|
|
|
79,128
|
|
|
(8,652
|
)
|
|
70,476
|
|
||||||
Increase (decrease) in interest income, net
|
|
43,587
|
|
|
(3,612
|
)
|
|
39,975
|
|
|
87,206
|
|
|
(4,483
|
)
|
|
82,723
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing checking and savings accounts
|
|
13
|
|
|
(2
|
)
|
|
11
|
|
|
28
|
|
|
(79
|
)
|
|
(51
|
)
|
||||||
Money market deposits
|
|
(9
|
)
|
|
136
|
|
|
127
|
|
|
17
|
|
|
(477
|
)
|
|
(460
|
)
|
||||||
Money market deposits in foreign offices
|
|
(6
|
)
|
|
3
|
|
|
(3
|
)
|
|
(15
|
)
|
|
7
|
|
|
(8
|
)
|
||||||
Time deposits
|
|
(10
|
)
|
|
(12
|
)
|
|
(22
|
)
|
|
(24
|
)
|
|
(35
|
)
|
|
(59
|
)
|
||||||
Sweep deposits in foreign offices
|
|
(34
|
)
|
|
—
|
|
|
(34
|
)
|
|
(107
|
)
|
|
9
|
|
|
(98
|
)
|
||||||
Total (decrease) in deposits expense
|
|
(46
|
)
|
|
125
|
|
|
79
|
|
|
(101
|
)
|
|
(575
|
)
|
|
(676
|
)
|
||||||
Short-term borrowings
|
|
330
|
|
|
17
|
|
|
347
|
|
|
321
|
|
|
56
|
|
|
377
|
|
||||||
3.50% Senior Notes
|
|
1
|
|
|
2
|
|
|
3
|
|
|
990
|
|
|
27
|
|
|
1,017
|
|
||||||
5.375% Senior Notes
|
|
3
|
|
|
5
|
|
|
8
|
|
|
25
|
|
|
(10
|
)
|
|
15
|
|
||||||
Junior Subordinated Debentures
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
6.05% Subordinated Notes
|
|
(8
|
)
|
|
73
|
|
|
65
|
|
|
(15
|
)
|
|
131
|
|
|
116
|
|
||||||
Total increase in borrowings expense
|
|
326
|
|
|
96
|
|
|
422
|
|
|
1,321
|
|
|
202
|
|
|
1,523
|
|
||||||
Increase (decrease) in interest expense, net
|
|
280
|
|
|
221
|
|
|
501
|
|
|
1,220
|
|
|
(373
|
)
|
|
847
|
|
||||||
Increase (decrease) in net interest income
|
|
$
|
43,307
|
|
|
$
|
(3,833
|
)
|
|
$
|
39,474
|
|
|
$
|
85,986
|
|
|
$
|
(4,110
|
)
|
|
$
|
81,876
|
|
•
|
Interest income
for the
three months ended
June 30, 2016
increased by $40.0 million due primarily to:
|
◦
|
A $38.0 million increase in interest income on loans to
$205.3 million
for the
three months ended
June 30, 2016
, compared to
$167.3 million
for the comparable
2015
period. The increase was reflective of an increase in average loan balances of
$3.9 billion
, partially offset by a decrease in both gross loan yields and loan fee yields.
Gross loan yields, excluding loan interest recoveries and loan fees, decreased to 3.99 percent from 4.01 percent, reflective of a shift in the mix of our overall loan portfolio from the second quarter of 2015, partially offset by the 25 basis point increase in the target federal funds rate by the Federal Reserve in December 2015. The shift in the mix of loans primarily reflects growth in private equity/venture capital and SVB Private Bank loans, which tend to be higher credit quality, lower yielding loans. Loan fee yields decreased 12 basis points to 54 basis points, from 66 basis points in the comparable 2015 period, attributable primarily to a decrease in prepayment fees.
|
◦
|
A $1.7 million increase in interest income on fixed income investment securities to
$87.5 million
for the
three months ended
June 30, 2016
, compared to
$85.8 million
for the comparable
2015
period. The increase was reflective primarily of an increase in average fixed income investment securities of $0.3 billion from the second quarter of 2015, as a result of our deposit growth.
|
•
|
Interest income
for the
six months ended
June 30, 2016
increased by $82.7 million due primarily to:
|
◦
|
A $70.5 million increase in interest income on loans to $403.2 million for the six months ended
June 30, 2016
, compared to $332.8 million for the comparable
2015
period. The increase was reflective of an increase in average loan balances of $3.4 billion, partially offset by a decrease in both gross loan yields and loan fee yields. Gross loan yields, excluding loan interest recoveries and loan fees, decreased to 4.02 percent from 4.05 percent, reflective of a shift in the mix of our overall loan portfolio from the first half of 2015, partially offset by the 25 basis point increase in the target federal funds rate by the Federal Reserve in December 2015. The shift in the mix of loans primarily reflects growth in private equity/venture capital and SVB Private Bank loans, which tend to be higher credit quality, lower yielding loans. Loan fee yields decreased nine basis points to 57 basis points, from 66 basis points in the comparable 2015 period. This decrease was a result of lower amortizing fee income as a percentage of our overall loan portfolio, primarily reflective of the growth of our private equity/venture capital and SVB Private Bank loans which tend to have lower fees.
|
◦
|
An $11.2 million increase in interest income on fixed income investment securities to $179.5 million for the six months ended
June 30, 2016
, compared to $168.2 million for the comparable
2015
period. The increase was reflective of an increase in average fixed income investment securities of $1.3 billion, primarily as a result of our deposit growth.
|
•
|
Interest expense
for the
six months ended
June 30, 2016
increased by $0.8 million primarily due to:
|
◦
|
An increase in interest expense of $1.1 million related to our long-term debt, reflective of the $350.0 million issuance of our 3.50% Senior Notes on January 29, 2015.
|
◦
|
A decrease in interest expense from interest-bearing deposits of $0.7 million, primarily due to decreases in rates paid on interest-bearing money market deposits as a result of market rate adjustments.
|
•
|
Our net interest margin increased by 15 basis points to 2.73 percent for the
three months ended
June 30, 2016
, compared to
2.58
percent for the comparable
2015
period. The higher margin during the second quarter of 2016 was reflective primarily of a shift in the mix of our average interest-earning assets towards our loan portfolio. The shift was a result of using cash and fixed income investment securities to fund loan growth during the second quarter of
|
•
|
Our net interest margin increased to
2.70 percent
for the
six months ended
June 30, 2016
, compared to
2.61 percent
for the comparable
2015
period. The higher margin during the first half of 2016 was reflective primarily of a shift in the mix of our average interest-earning assets towards our loan portfolio. The shift was a result of using cash and fixed income investment securities to fund loan growth during the first half of 2016. Average loans represented 42 percent of interest earning assets for the first half of 2016 compared to 38 percent for the first half of 2015.
|
|
|
Three months ended June 30,
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||
(Dollars in thousands)
|
|
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)
|
|
$
|
1,796,679
|
|
|
$
|
1,527
|
|
|
0.34
|
%
|
|
$
|
2,128,460
|
|
|
$
|
1,320
|
|
|
0.25
|
%
|
Investment securities: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
13,399,323
|
|
|
46,108
|
|
|
1.38
|
|
|
13,797,718
|
|
|
46,698
|
|
|
1.36
|
|
||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
8,321,790
|
|
|
40,495
|
|
|
1.96
|
|
|
7,558,646
|
|
|
37,915
|
|
|
2.01
|
|
||||
Non-taxable (3)
|
|
61,045
|
|
|
884
|
|
|
5.82
|
|
|
81,144
|
|
|
1,141
|
|
|
5.64
|
|
||||
Total loans, net of unearned income (4) (5)
|
|
18,199,259
|
|
|
205,287
|
|
|
4.54
|
|
|
14,320,875
|
|
|
167,252
|
|
|
4.68
|
|
||||
Total interest-earning assets
|
|
41,778,096
|
|
|
294,301
|
|
|
2.83
|
|
|
37,886,843
|
|
|
254,326
|
|
|
2.69
|
|
||||
Cash and due from banks
|
|
259,054
|
|
|
|
|
|
|
316,577
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(239,727
|
)
|
|
|
|
|
|
(180,130
|
)
|
|
|
|
|
||||||||
Other assets (6)
|
|
1,572,607
|
|
|
|
|
|
|
1,419,533
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
43,370,030
|
|
|
|
|
|
|
$
|
39,442,823
|
|
|
|
|
|
||||||
Funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing checking and savings accounts
|
|
$
|
309,733
|
|
|
$
|
60
|
|
|
0.08
|
%
|
|
$
|
230,891
|
|
|
$
|
49
|
|
|
0.09
|
%
|
Money market deposits
|
|
5,975,948
|
|
|
1,035
|
|
|
0.07
|
|
|
6,034,187
|
|
|
908
|
|
|
0.06
|
|
||||
Money market deposits in foreign offices
|
|
128,565
|
|
|
15
|
|
|
0.05
|
|
|
188,399
|
|
|
18
|
|
|
0.04
|
|
||||
Time deposits
|
|
59,485
|
|
|
16
|
|
|
0.11
|
|
|
93,387
|
|
|
38
|
|
|
0.16
|
|
||||
Sweep deposits in foreign offices
|
|
1,343,803
|
|
|
135
|
|
|
0.04
|
|
|
1,685,870
|
|
|
169
|
|
|
0.04
|
|
||||
Total interest-bearing deposits
|
|
7,817,534
|
|
|
1,261
|
|
|
0.06
|
|
|
8,232,734
|
|
|
1,182
|
|
|
0.06
|
|
||||
Short-term borrowings
|
|
302,527
|
|
|
360
|
|
|
0.48
|
|
|
26,345
|
|
|
13
|
|
|
0.20
|
|
||||
3.50% Senior Notes
|
|
346,771
|
|
|
3,140
|
|
|
3.64
|
|
|
346,479
|
|
|
3,137
|
|
|
3.63
|
|
||||
5.375% Senior Notes
|
|
347,204
|
|
|
4,845
|
|
|
5.61
|
|
|
346,654
|
|
|
4,837
|
|
|
5.60
|
|
||||
Junior Subordinated Debentures
|
|
54,610
|
|
|
832
|
|
|
6.13
|
|
|
54,787
|
|
|
833
|
|
|
6.10
|
|
||||
6.05% Subordinated Notes
|
|
47,866
|
|
|
218
|
|
|
1.83
|
|
|
49,651
|
|
|
153
|
|
|
1.24
|
|
||||
Total interest-bearing liabilities
|
|
8,916,512
|
|
|
10,656
|
|
|
0.48
|
|
|
9,056,650
|
|
|
10,155
|
|
|
0.45
|
|
||||
Portion of noninterest-bearing funding sources
|
|
32,861,584
|
|
|
|
|
|
|
28,830,193
|
|
|
|
|
|
||||||||
Total funding sources
|
|
41,778,096
|
|
|
10,656
|
|
|
0.10
|
|
|
37,886,843
|
|
|
10,155
|
|
|
0.11
|
|
||||
Noninterest-bearing funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
30,342,425
|
|
|
|
|
|
|
26,723,333
|
|
|
|
|
|
||||||||
Other liabilities
|
|
528,274
|
|
|
|
|
|
|
490,847
|
|
|
|
|
|
||||||||
SVBFG stockholders’ equity
|
|
3,451,702
|
|
|
|
|
|
|
3,031,699
|
|
|
|
|
|
||||||||
Noncontrolling interests
|
|
131,117
|
|
|
|
|
|
|
140,294
|
|
|
|
|
|
||||||||
Portion used to fund interest-earning assets
|
|
(32,861,584
|
)
|
|
|
|
|
|
(28,830,193
|
)
|
|
|
|
|
||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity
|
|
$
|
43,370,030
|
|
|
|
|
|
|
$
|
39,442,823
|
|
|
|
|
|
||||||
Net interest income and margin
|
|
|
|
$
|
283,645
|
|
|
2.73
|
%
|
|
|
|
$
|
244,171
|
|
|
2.58
|
%
|
||||
Total deposits
|
|
$
|
38,159,959
|
|
|
|
|
|
|
$
|
34,956,067
|
|
|
|
|
|
||||||
Reconciliation to reported net interest income
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments for taxable equivalent basis
|
|
|
|
(309
|
)
|
|
|
|
|
|
(400
|
)
|
|
|
||||||||
Net interest income, as reported
|
|
|
|
$
|
283,336
|
|
|
|
|
|
|
$
|
243,771
|
|
|
|
|
(1)
|
Includes average interest-earning deposits in other financial institutions of
$633 million
and
$445 million
for the
three months ended
June 30, 2016
and
2015
, respectively. For the
three months ended
June 30, 2016
and
2015
, balances also include
$1.1 billion
and
$1.6 billion
, respectively, deposited at the Federal Reserve Bank, 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 are 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
$24.2 million
and
$23.7 million
for the
three months ended
June 30, 2016
and
2015
, respectively.
|
(6)
|
Average investment securities of
$824 million
and
$776 million
for the
three months ended
June 30, 2016
and
2015
, respectively, were classified as other assets as they were noninterest-earning assets. These investments consisted primarily of non-marketable and other securities.
|
|
|
Six months ended June 30,
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||
(Dollars in thousands)
|
|
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)
|
|
$
|
1,963,818
|
|
|
$
|
3,597
|
|
|
0.37
|
%
|
|
$
|
1,815,912
|
|
|
$
|
2,589
|
|
|
0.29
|
%
|
Investment securities: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
14,045,978
|
|
|
96,191
|
|
|
1.38
|
|
|
13,685,091
|
|
|
90,707
|
|
|
1.34
|
|
||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
8,458,435
|
|
|
81,462
|
|
|
1.94
|
|
|
7,522,605
|
|
|
75,180
|
|
|
2.02
|
|
||||
Non-taxable (3)
|
|
62,324
|
|
|
1,802
|
|
|
5.81
|
|
|
82,361
|
|
|
2,329
|
|
|
5.70
|
|
||||
Total loans, net of unearned income (4) (5)
|
|
17,605,847
|
|
|
403,229
|
|
|
4.61
|
|
|
14,185,333
|
|
|
332,753
|
|
|
4.73
|
|
||||
Total interest-earning assets
|
|
42,136,402
|
|
|
586,281
|
|
|
2.80
|
|
|
37,291,302
|
|
|
503,558
|
|
|
2.72
|
|
||||
Cash and due from banks
|
|
330,744
|
|
|
|
|
|
|
278,453
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(232,535
|
)
|
|
|
|
|
|
(175,700
|
)
|
|
|
|
|
||||||||
Other assets (5)
|
|
1,545,499
|
|
|
|
|
|
|
1,441,401
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
43,780,110
|
|
|
|
|
|
|
$
|
38,835,456
|
|
|
|
|
|
||||||
Funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing checking and savings accounts
|
|
$
|
311,596
|
|
|
$
|
121
|
|
|
0.08
|
%
|
|
$
|
229,718
|
|
|
$
|
172
|
|
|
0.15
|
%
|
Money market deposits
|
|
6,036,761
|
|
|
1,981
|
|
|
0.07
|
|
|
5,995,766
|
|
|
2,441
|
|
|
0.08
|
|
||||
Money market deposits in foreign offices
|
|
130,368
|
|
|
30
|
|
|
0.05
|
|
|
197,898
|
|
|
38
|
|
|
0.04
|
|
||||
Time deposits
|
|
63,476
|
|
|
39
|
|
|
0.12
|
|
|
102,154
|
|
|
98
|
|
|
0.19
|
|
||||
Sweep deposits in foreign offices
|
|
1,390,878
|
|
|
278
|
|
|
0.04
|
|
|
1,933,967
|
|
|
376
|
|
|
0.04
|
|
||||
Total interest-bearing deposits
|
|
7,933,079
|
|
|
2,449
|
|
|
0.06
|
|
|
8,459,503
|
|
|
3,125
|
|
|
0.07
|
|
||||
Short-term borrowings
|
|
173,640
|
|
|
402
|
|
|
0.47
|
|
|
34,934
|
|
|
25
|
|
|
0.14
|
|
||||
3.5% Senior Notes
|
|
346,732
|
|
|
6,280
|
|
|
3.64
|
|
|
292,868
|
|
|
5,263
|
|
|
3.62
|
|
||||
5.375% Senior Notes
|
|
347,134
|
|
|
9,687
|
|
|
5.61
|
|
|
346,589
|
|
|
9,672
|
|
|
5.63
|
|
||||
Junior Subordinated Debentures
|
|
54,632
|
|
|
1,663
|
|
|
6.12
|
|
|
54,808
|
|
|
1,665
|
|
|
6.14
|
|
||||
6.05% Subordinated Notes
|
|
48,080
|
|
|
412
|
|
|
1.72
|
|
|
49,832
|
|
|
296
|
|
|
1.20
|
|
||||
Total interest-bearing liabilities
|
|
8,903,297
|
|
|
20,893
|
|
|
0.47
|
|
|
9,238,534
|
|
|
20,046
|
|
|
0.44
|
|
||||
Portion of noninterest-bearing funding sources
|
|
33,233,105
|
|
|
|
|
|
|
28,052,768
|
|
|
|
|
|
||||||||
Total funding sources
|
|
42,136,402
|
|
|
20,893
|
|
|
0.10
|
|
|
37,291,302
|
|
|
20,046
|
|
|
0.11
|
|
||||
Noninterest-bearing funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
30,780,965
|
|
|
|
|
|
|
25,952,670
|
|
|
|
|
|
||||||||
Other liabilities
|
|
576,535
|
|
|
|
|
|
|
531,067
|
|
|
|
|
|
||||||||
SVBFG stockholders’ equity
|
|
3,387,031
|
|
|
|
|
|
|
2,966,378
|
|
|
|
|
|
||||||||
Noncontrolling interests
|
|
132,282
|
|
|
|
|
|
|
146,807
|
|
|
|
|
|
||||||||
Portion used to fund interest-earning assets
|
|
(33,233,105
|
)
|
|
|
|
|
|
(28,052,768
|
)
|
|
|
|
|
||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity
|
|
$
|
43,780,110
|
|
|
|
|
|
|
$
|
38,835,456
|
|
|
|
|
|
||||||
Net interest income and margin
|
|
|
|
$
|
565,388
|
|
|
2.70
|
%
|
|
|
|
$
|
483,512
|
|
|
2.61
|
%
|
||||
Total deposits
|
|
$
|
38,714,044
|
|
|
|
|
|
|
$
|
34,412,173
|
|
|
|
|
|
||||||
Reconciliation to reported net interest income
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments for taxable equivalent basis
|
|
|
|
(631
|
)
|
|
|
|
|
|
(816
|
)
|
|
|
||||||||
Net interest income, as reported
|
|
|
|
$
|
564,757
|
|
|
|
|
|
|
$
|
482,696
|
|
|
|
|
(1)
|
Includes average interest-earning deposits in other financial institutions of
$600 million
and
$477 million
for the
six months ended
June 30, 2016
and
2015
, respectively. The balance also includes
$1.3 billion
deposited at the FRB, earning interest at the Federal Funds target rate for both the
six months ended
June 30, 2016
and
2015
.
|
(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 available-for-sale 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
$49.7 million
and
$46.7 million
for the
six months ended
June 30, 2016
and
2015
, respectively.
|
(6)
|
Average investment securities of
$0.8 billion
and
$1.2 billion
for the
six months ended
June 30, 2016
and
2015
, respectively, were classified as other assets as they were noninterest-earning assets. These investments consisted primarily of non-marketable securities.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Allowance for loan losses, beginning balance
|
|
$
|
230,249
|
|
|
$
|
167,875
|
|
|
$
|
217,613
|
|
|
$
|
165,359
|
|
Provision for loan losses
|
|
36,333
|
|
|
26,513
|
|
|
69,674
|
|
|
32,965
|
|
||||
Gross loan charge-offs
|
|
(20,676
|
)
|
|
(4,734
|
)
|
|
(46,850
|
)
|
|
(10,221
|
)
|
||||
Loan recoveries
|
|
1,261
|
|
|
2,939
|
|
|
6,074
|
|
|
4,627
|
|
||||
Foreign currency translation adjustments (1)
|
|
(2,444
|
)
|
|
51
|
|
|
(1,788
|
)
|
|
(86
|
)
|
||||
Allowance for loan losses, ending balance
|
|
$
|
244,723
|
|
|
$
|
192,644
|
|
|
$
|
244,723
|
|
|
$
|
192,644
|
|
Provision for loan losses as a percentage of period-end total gross loans (annualized)
|
|
0.77
|
%
|
|
0.74
|
%
|
|
0.74
|
%
|
|
0.46
|
%
|
||||
Gross loan charge-offs as a percentage of average total gross loans (annualized)
|
|
0.45
|
|
|
0.13
|
|
|
0.53
|
|
|
0.14
|
|
||||
Net loan charge-offs as a percentage of average total gross loans (annualized)
|
|
0.43
|
|
|
0.05
|
|
|
0.46
|
|
|
0.08
|
|
||||
Allowance for loan losses as a percentage of period-end total gross loans
|
|
1.29
|
|
|
1.34
|
|
|
1.29
|
|
|
1.34
|
|
||||
Period-end total gross loans
|
|
$
|
18,949,902
|
|
|
$
|
14,370,930
|
|
|
$
|
18,949,902
|
|
|
$
|
14,370,930
|
|
Average total gross loans
|
|
18,310,189
|
|
|
14,427,039
|
|
|
17,716,954
|
|
|
14,289,662
|
|
|
(1)
|
Reflects foreign currency translation adjustments within the allowance for loan losses. Prior period amounts were previously reported with loan recoveries and have been revised to conform to current period presentation.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
GAAP noninterest income
|
|
$
|
112,776
|
|
|
$
|
126,287
|
|
|
(10.7
|
)%
|
|
$
|
198,910
|
|
|
$
|
249,811
|
|
|
(20.4
|
)%
|
Less: income (loss) attributable to noncontrolling interests, including carried interest
|
|
1,619
|
|
|
8,556
|
|
|
(81.1
|
)
|
|
(1,052
|
)
|
|
22,720
|
|
|
(104.6
|
)
|
||||
Non-GAAP noninterest income, net of noncontrolling interests
|
|
$
|
111,157
|
|
|
$
|
117,731
|
|
|
(5.6
|
)
|
|
$
|
199,962
|
|
|
$
|
227,091
|
|
|
(11.9
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
GAAP noninterest income
|
|
$
|
112,776
|
|
|
$
|
126,287
|
|
|
(10.7
|
)%
|
|
$
|
198,910
|
|
|
$
|
249,811
|
|
|
(20.4
|
)%
|
Less: gains on investment securities, net
|
|
23,270
|
|
|
24,975
|
|
|
(6.8
|
)
|
|
18,586
|
|
|
58,238
|
|
|
(68.1
|
)
|
||||
Less: gains on derivative instruments, net
|
|
8,798
|
|
|
16,317
|
|
|
(46.1
|
)
|
|
7,103
|
|
|
56,046
|
|
|
(87.3
|
)
|
||||
Less: other noninterest income
|
|
6,254
|
|
|
18,916
|
|
|
(66.9
|
)
|
|
22,225
|
|
|
11,238
|
|
|
97.8
|
|
||||
Non-GAAP core fee income (1)
|
|
$
|
74,454
|
|
|
$
|
66,079
|
|
|
12.7
|
|
|
$
|
150,996
|
|
|
$
|
124,289
|
|
|
21.5
|
|
|
(1)
|
Non-GAAP core fee income represents noninterest income, but excludes certain line items where performance is typically subject to market or other conditions beyond our control and includes foreign exchange fees, deposit service charges, credit card fees, lending related fees, client investment fees and letters of credit fees.
|
•
|
Net gains of
$12.3 million
from our available-for-sale securities portfolio primarily reflective of $12.4 million of net gains on the sale of approximately $1.0 billion in U.S. Treasury securities,
|
•
|
Gains of
$7.9 million
from our strategic and other investments, driven primarily by distribution gains from our strategic venture capital fund investments, and
|
•
|
Gains of
$1.7 million
from our managed funds of funds, related primarily to net unrealized valuation increases.
|
•
|
Gains of
$11.6 million
from our available-for-sale securities portfolio primarily reflective of $13.8 million of net gains on the sale of approximately $2.9 billion in U.S. Treasury securities, partially offset by $2.2 million of losses on sales of shares from exercised warrants in public companies upon expiration of lock-up periods during the first half of 2016,
|
•
|
Gains of
$10.3 million
from our strategic and other investments, driven primarily by distribution gains from our strategic venture capital fund investments, and
|
•
|
Losses of
$2.2 million
from our managed funds of funds, related primarily to unrealized valuation decreases due to the decrease in market prices of public positions held by the fund investments in the portfolio.
|
(Dollars in thousands)
|
|
Managed
Funds of
Funds
|
|
Managed
Direct
Venture
Funds
|
|
Debt
Funds
|
|
Available-
For-Sale
Securities
|
|
Strategic
and Other
Investments
|
|
Total
|
||||||||||||
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total gains (losses) on investment securities, net
|
|
$
|
3,380
|
|
|
$
|
(167
|
)
|
|
$
|
(220
|
)
|
|
$
|
12,328
|
|
|
$
|
7,949
|
|
|
$
|
23,270
|
|
Less: income (losses) attributable to noncontrolling interests, including carried interest
|
|
1,640
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,622
|
|
||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests
|
|
$
|
1,740
|
|
|
$
|
(149
|
)
|
|
$
|
(220
|
)
|
|
$
|
12,328
|
|
|
$
|
7,949
|
|
|
$
|
21,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total gains on investment securities, net
|
|
$
|
14,281
|
|
|
$
|
869
|
|
|
$
|
183
|
|
|
$
|
141
|
|
|
$
|
9,501
|
|
|
$
|
24,975
|
|
Less: income attributable to noncontrolling interests, including carried interest
|
|
8,913
|
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,036
|
|
||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests
|
|
$
|
5,368
|
|
|
$
|
746
|
|
|
$
|
183
|
|
|
$
|
141
|
|
|
$
|
9,501
|
|
|
$
|
15,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total gains (losses) on investment securities, net
|
|
$
|
(3,101
|
)
|
|
$
|
(801
|
)
|
|
$
|
635
|
|
|
$
|
11,582
|
|
|
$
|
10,271
|
|
|
$
|
18,586
|
|
Less: losses attributable to noncontrolling interests, including carried interest
|
|
(947
|
)
|
|
(147
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,094
|
)
|
||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests
|
|
$
|
(2,154
|
)
|
|
$
|
(654
|
)
|
|
$
|
635
|
|
|
$
|
11,582
|
|
|
$
|
10,271
|
|
|
$
|
19,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Six months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total gains on investment securities, net
|
|
$
|
24,940
|
|
|
$
|
12,538
|
|
|
$
|
1,099
|
|
|
$
|
2,737
|
|
|
$
|
16,924
|
|
|
$
|
58,238
|
|
Less: income attributable to noncontrolling interests, including carried interest
|
|
16,052
|
|
|
7,155
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,207
|
|
||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests
|
|
$
|
8,888
|
|
|
$
|
5,383
|
|
|
$
|
1,099
|
|
|
$
|
2,737
|
|
|
$
|
16,924
|
|
|
$
|
35,031
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Equity warrant assets (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Losses) gains on exercises, net
|
|
$
|
(1,487
|
)
|
|
$
|
14,584
|
|
|
(110.2
|
)%
|
|
$
|
5,585
|
|
|
$
|
24,190
|
|
|
(76.9
|
)%
|
Cancellations and expirations
|
|
(769
|
)
|
|
(114
|
)
|
|
NM
|
|
|
(1,385
|
)
|
|
(406
|
)
|
|
NM
|
|
||||
Changes in fair value
|
|
7,345
|
|
|
9,146
|
|
|
(19.7
|
)
|
|
7,494
|
|
|
20,110
|
|
|
(62.7
|
)
|
||||
Net gains on equity warrant assets
|
|
5,089
|
|
|
23,616
|
|
|
(78.5
|
)
|
|
11,694
|
|
|
43,894
|
|
|
(73.4
|
)
|
||||
Gains (losses) on foreign exchange forward contracts, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains (losses) on client foreign exchange forward contracts, net (2)
|
|
68
|
|
|
787
|
|
|
(91.4
|
)
|
|
(5,586
|
)
|
|
280
|
|
|
NM
|
|
||||
Gains (losses) on internal foreign exchange forward contracts, net (3)
|
|
3,923
|
|
|
(8,174
|
)
|
|
(148.0
|
)
|
|
1,715
|
|
|
11,844
|
|
|
(85.5
|
)
|
||||
Total gains (losses) on foreign exchange forward contracts, net
|
|
3,991
|
|
|
(7,387
|
)
|
|
(154.0
|
)
|
|
(3,871
|
)
|
|
12,124
|
|
|
(131.9
|
)
|
||||
Changes in fair value of interest rate swaps
|
|
(13
|
)
|
|
(11
|
)
|
|
18.2
|
|
|
(30
|
)
|
|
(14
|
)
|
|
114.3
|
|
||||
Net (losses) gains on other derivatives
|
|
(269
|
)
|
|
99
|
|
|
NM
|
|
|
(690
|
)
|
|
42
|
|
|
NM
|
|
||||
Gains on derivative instruments, net
|
|
$
|
8,798
|
|
|
$
|
16,317
|
|
|
(46.1
|
)
|
|
$
|
7,103
|
|
|
$
|
56,046
|
|
|
(87.3
|
)
|
|
(1)
|
At
June 30, 2016
, we held warrants in
1,697
companies, compared to
1,587
companies at
June 30, 2015
. The total value of our warrant portfolio was
$130 million
at
June 30, 2016
and $123 million at
June 30, 2015
. Warrants in 19 companies had values greater than $1.0 million and represented 32 percent of the fair value of the portfolio at
June 30, 2016
.
|
(2)
|
Represents the change in the fair value of foreign exchange forward contracts executed on behalf of clients, excluding any spread or fees earned in connection with these trades. The change in fair value of our client foreign exchange contracts is offset by the revaluation of client foreign currency denominated financial instruments which are included in the line item "Other" within noninterest income. Refer to the discussion related to gains (losses) on the revaluation of client foreign currency instruments, net, included in the line item "Other noninterest income" for more information.
|
(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, issued and held by us. The change in fair value of our internal foreign exchange contracts is offset by the revaluation of foreign currency denominated financial instruments, issued and held by us, which are included in the line item "Other" within noninterest income. Refer to the discussion related to gains (losses) on the revaluation of internal foreign currency instruments, net, included in the line item "Other noninterest income" for more information.
|
•
|
Net gains on equity warrant assets of
$5.1 million
, which consisted of:
|
◦
|
Net gains of
$7.3 million
from changes in warrant valuations for the
three months ended
June 30, 2016
, compared to
$9.1 million
for the comparable
2015
period, primarily reflective of IPO and M&A activity in the portfolio.
|
◦
|
Net losses of
$1.5 million
from the exercise of equity warrant assets during the three months ended
June 30, 2016
,
primarily from warrant conversions for certain private positions at lower valuations than the prior estimated warrant value, compared to gains of
$14.6 million
for the comparable
2015
period.
|
•
|
Net gains of
$3.9 million
on internal foreign exchange forward contracts used to economically reduce our foreign exchange exposure to foreign currency denominated financial instruments for the three months ended
June 30, 2016
, compared to net losses of
$8.2 million
for the comparable 2015 period. The net gains of
$3.9 million
were driven by
|
•
|
Net gains on equity warrant assets of
$11.7 million
for the
six months ended
June 30, 2016
, compared to
$43.9 million
for the comparable
2015
period, which consisted of the following:
|
◦
|
Net gains of
$7.5 million
from changes in warrant valuations for the six months ended
June 30, 2016
, compared to
$20.1 million
for the comparable 2015 period, reflective primarily of IPO and M&A activity in the portfolio.
|
◦
|
Net gains of
$5.6 million
from the exercise of equity warrant assets for the six months ended
June 30, 2016
, compared to
$24.2 million
for the comparable 2015 period, reflective primarily of M&A activity.
|
•
|
Net losses of
$5.6 million
on client foreign exchange forward contracts for the six months ended
June 30, 2016
, compared to net gains of
$0.3 million
for the comparable 2015 period. The net losses of $5.6 million were partially offset by net gains of $3.5 million from the revaluation of foreign currency denominated financial instruments that are included in the line item "Other" within noninterest income. Also contributing to the loss is a reclassification of $2.8 million in unrealized gains on forward contracts to foreign exchange fee income (included in non-GAAP core fee income above) reflecting fees earned on forward contracts executed on behalf of our clients, which were previously recorded in gains (losses) on derivative instruments.
|
•
|
Net gains of
$1.7 million
on internal foreign exchange forward contracts hedging certain of our foreign currency denominated instruments for the
six months ended
June 30, 2016
, compared to gains of
$11.8 million
for the comparable
2015
period. The gains recognized for the six months ended
June 30, 2016
were primarily attributable to the strengthening of the U.S. Dollar against various foreign currencies, primarily against the Euro and the Swedish Krona. The gains of $1.7 million and $11.8 million were offset by losses of $2.8 million and $11.9 million, respectively, from the revaluation of foreign currency denominated instruments that are included in the line item "Other" within noninterest income as noted below.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Non-GAAP core fee income (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange fees
|
|
$
|
24,088
|
|
|
$
|
22,364
|
|
|
7.7
|
%
|
|
$
|
51,054
|
|
|
$
|
40,042
|
|
|
27.5
|
%
|
Credit card fees
|
|
15,424
|
|
|
14,215
|
|
|
8.5
|
|
|
30,931
|
|
|
26,305
|
|
|
17.6
|
|
||||
Deposit service charges
|
|
13,114
|
|
|
11,301
|
|
|
16.0
|
|
|
25,786
|
|
|
22,037
|
|
|
17.0
|
|
||||
Client investment fees
|
|
8,012
|
|
|
5,264
|
|
|
52.2
|
|
|
16,007
|
|
|
9,746
|
|
|
64.2
|
|
||||
Lending related fees
|
|
7,802
|
|
|
8,163
|
|
|
(4.4
|
)
|
|
15,615
|
|
|
16,185
|
|
|
(3.5
|
)
|
||||
Letters of credit and standby letters of credit fees
|
|
6,014
|
|
|
4,772
|
|
|
26.0
|
|
|
11,603
|
|
|
9,974
|
|
|
16.3
|
|
||||
Total non-GAAP core fee income (1)
|
|
$
|
74,454
|
|
|
$
|
66,079
|
|
|
12.7
|
|
|
$
|
150,996
|
|
|
$
|
124,289
|
|
|
21.5
|
|
|
(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. See "Use of Non-GAAP Measures" above.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Client directed investment assets (1)
|
|
$
|
7,248
|
|
|
$
|
7,847
|
|
|
(7.6
|
)%
|
|
$
|
7,283
|
|
|
$
|
7,432
|
|
|
(2.0
|
)%
|
Client investment assets under management (2)
|
|
21,222
|
|
|
19,261
|
|
|
10.2
|
|
|
21,477
|
|
|
18,486
|
|
|
16.2
|
|
||||
Sweep money market funds
|
|
14,413
|
|
|
10,761
|
|
|
33.9
|
|
|
13,918
|
|
|
9,829
|
|
|
41.6
|
|
||||
Total average client investment funds (3)
|
|
$
|
42,883
|
|
|
$
|
37,869
|
|
|
13.2
|
|
|
$
|
42,678
|
|
|
$
|
35,747
|
|
|
19.4
|
|
|
(1)
|
Comprised of mutual funds and Repurchase Agreement Program assets.
|
(2)
|
These funds represent investments in third party money market mutual funds and fixed-income securities managed by SVB Asset Management.
|
(3)
|
Client investment funds are maintained at third party financial institutions and are not recorded on our balance sheet.
|
(Dollars in millions)
|
|
June 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||
Client directed investment assets (1)
|
|
$
|
7,117
|
|
|
$
|
7,527
|
|
|
(5.4
|
)%
|
Client investment assets under management (2)
|
|
20,508
|
|
|
22,454
|
|
|
(8.7
|
)
|
||
Sweep money market funds
|
|
15,447
|
|
|
14,011
|
|
|
10.2
|
|
||
Total period-end client investment funds (3)
|
|
$
|
43,072
|
|
|
$
|
43,992
|
|
|
(2.1
|
)
|
|
(1)
|
Comprised of mutual funds and Repurchase Agreement Program assets.
|
(2)
|
These funds represent investments in third party money market mutual funds and fixed-income securities managed by SVB Asset Management.
|
(3)
|
Client investment funds are maintained at third party financial institutions and are not recorded on our balance sheet.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Fund management fees
|
|
$
|
4,298
|
|
|
$
|
3,861
|
|
|
11.3
|
%
|
|
$
|
8,918
|
|
|
$
|
7,583
|
|
|
17.6
|
%
|
Service-based fee income
|
|
2,148
|
|
|
2,413
|
|
|
(11.0
|
)
|
|
4,240
|
|
|
4,519
|
|
|
(6.2
|
)
|
||||
(Losses) gains on revaluation of internal foreign currency instruments, net (1)
|
|
(5,307
|
)
|
|
8,306
|
|
|
(163.9
|
)
|
|
(2,816
|
)
|
|
(11,853
|
)
|
|
(76.2
|
)
|
||||
Other (2)
|
|
5,115
|
|
|
4,336
|
|
|
18.0
|
|
|
11,883
|
|
|
10,989
|
|
|
8.1
|
|
||||
Total other noninterest income
|
|
$
|
6,254
|
|
|
$
|
18,916
|
|
|
(66.9
|
)
|
|
$
|
22,225
|
|
|
$
|
11,238
|
|
|
97.8
|
|
|
(1)
|
Represents the net revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash. We enter into internal foreign exchange forward contracts to economically reduce our foreign exchange exposure related to these foreign currency denominated financial instruments issued and held by us. The changes in the fair value of internal foreign exchange forward contracts
are included within noninterest in
come in the line item "Gains on derivative instruments, net".
|
(2)
|
Includes dividends on FHLB/FRB stock, correspondent bank rebate income and other fee income. Also included in this line item is the net revaluation of client foreign currency denominated financial instruments. We enter into client foreign exchange forward contracts to economically reduce our foreign exchange exposure related to client foreign currency denominated financial instruments. The changes in the fair value of client foreign exchange forward contracts
are included within noninterest in
come in the line item "Gains on derivative instruments, net".
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Compensation and benefits
|
|
$
|
115,580
|
|
|
$
|
124,915
|
|
|
(7.5
|
)%
|
|
$
|
237,842
|
|
|
$
|
240,685
|
|
|
(1.2
|
)%
|
Professional services
|
|
25,516
|
|
|
18,950
|
|
|
34.6
|
|
|
44,516
|
|
|
37,697
|
|
|
18.1
|
|
||||
Premises and equipment
|
|
16,586
|
|
|
11,787
|
|
|
40.7
|
|
|
31,570
|
|
|
24,444
|
|
|
29.2
|
|
||||
Business development and travel
|
|
9,327
|
|
|
9,764
|
|
|
(4.5
|
)
|
|
21,573
|
|
|
20,876
|
|
|
3.3
|
|
||||
Net occupancy
|
|
9,359
|
|
|
8,149
|
|
|
14.8
|
|
|
19,394
|
|
|
15,462
|
|
|
25.4
|
|
||||
FDIC and state assessments
|
|
6,892
|
|
|
5,962
|
|
|
15.6
|
|
|
13,819
|
|
|
11,751
|
|
|
17.6
|
|
||||
Correspondent bank fees
|
|
2,713
|
|
|
3,337
|
|
|
(18.7
|
)
|
|
6,365
|
|
|
6,705
|
|
|
(5.1
|
)
|
||||
Provision for (reduction of) unfunded credit commitments
|
|
413
|
|
|
(3,061
|
)
|
|
(113.5
|
)
|
|
547
|
|
|
(798
|
)
|
|
(168.5
|
)
|
||||
Other
|
|
13,966
|
|
|
14,309
|
|
|
(2.4
|
)
|
|
28,759
|
|
|
27,831
|
|
|
3.3
|
|
||||
Total noninterest expense
|
|
$
|
200,352
|
|
|
$
|
194,112
|
|
|
3.2
|
|
|
$
|
404,385
|
|
|
$
|
384,653
|
|
|
5.1
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands, except ratios)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
GAAP noninterest expense
|
|
$
|
200,352
|
|
|
$
|
194,112
|
|
|
3.2
|
%
|
|
$
|
404,385
|
|
|
$
|
384,653
|
|
|
5.1
|
%
|
Less: amounts attributable to noncontrolling interests
|
|
258
|
|
|
242
|
|
|
6.6
|
|
|
167
|
|
|
534
|
|
|
(68.7
|
)
|
||||
Non-GAAP noninterest expense, net of noncontrolling interests
|
|
$
|
200,094
|
|
|
$
|
193,870
|
|
|
3.2
|
|
|
$
|
404,218
|
|
|
$
|
384,119
|
|
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net interest income
|
|
$
|
283,336
|
|
|
$
|
243,771
|
|
|
16.2
|
|
|
$
|
564,757
|
|
|
$
|
482,696
|
|
|
17.0
|
|
Adjustments for taxable equivalent basis
|
|
309
|
|
|
400
|
|
|
(22.8
|
)
|
|
631
|
|
|
816
|
|
|
(22.7
|
)
|
||||
Non-GAAP taxable equivalent net interest income
|
|
$
|
283,645
|
|
|
$
|
244,171
|
|
|
16.2
|
|
|
$
|
565,388
|
|
|
$
|
483,512
|
|
|
16.9
|
|
Less: income attributable to noncontrolling interests
|
|
55
|
|
|
2
|
|
|
NM
|
|
|
58
|
|
|
4
|
|
|
NM
|
|
||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests
|
|
$
|
283,590
|
|
|
$
|
244,169
|
|
|
16.1
|
|
|
$
|
565,330
|
|
|
$
|
483,508
|
|
|
16.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP noninterest income
|
|
$
|
112,776
|
|
|
$
|
126,287
|
|
|
(10.7
|
)
|
|
$
|
198,910
|
|
|
$
|
249,811
|
|
|
(20.4
|
)
|
Non-GAAP noninterest income, net of noncontrolling interests
|
|
111,157
|
|
|
117,731
|
|
|
(5.6
|
)
|
|
199,962
|
|
|
227,091
|
|
|
(11.9
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP total revenue
|
|
$
|
396,112
|
|
|
$
|
370,058
|
|
|
7.0
|
|
|
$
|
763,667
|
|
|
$
|
732,507
|
|
|
4.3
|
|
Non-GAAP taxable equivalent revenue, net of noncontrolling interests
|
|
$
|
394,747
|
|
|
$
|
361,900
|
|
|
9.1
|
|
|
$
|
765,292
|
|
|
$
|
710,599
|
|
|
7.7
|
|
GAAP operating efficiency ratio
|
|
50.58
|
%
|
|
52.45
|
%
|
|
(3.6
|
)
|
|
52.95
|
%
|
|
52.51
|
%
|
|
0.8
|
|
||||
Non-GAAP operating efficiency ratio (1)
|
|
50.69
|
|
|
53.57
|
|
|
(5.4
|
)
|
|
52.82
|
%
|
|
54.06
|
%
|
|
(2.3
|
)
|
|
(1)
|
The non-GAAP operating efficiency ratio is calculated by dividing non-GAAP noninterest expense, net of noncontrolling interests, by non-GAAP taxable-equivalent revenue, net of noncontrolling interests.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands, except employees)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and wages
|
|
$
|
60,353
|
|
|
$
|
51,648
|
|
|
16.9
|
%
|
|
$
|
119,739
|
|
|
$
|
103,073
|
|
|
16.2
|
%
|
Incentive compensation & ESOP
|
|
22,279
|
|
|
39,869
|
|
|
(44.1
|
)
|
|
48,907
|
|
|
68,412
|
|
|
(28.5
|
)
|
||||
Other employee incentives and benefits (1)
|
|
32,948
|
|
|
33,398
|
|
|
(1.3
|
)
|
|
69,196
|
|
|
69,200
|
|
|
—
|
|
||||
Total compensation and benefits
|
|
$
|
115,580
|
|
|
$
|
124,915
|
|
|
(7.5
|
)
|
|
$
|
237,842
|
|
|
$
|
240,685
|
|
|
(1.2
|
)
|
Period-end full-time equivalent employees
|
|
2,188
|
|
|
1,964
|
|
|
11.4
|
|
|
2,188
|
|
|
1,964
|
|
|
11.4
|
|
||||
Average full-time equivalent employees
|
|
2,182
|
|
|
1,959
|
|
|
11.4
|
|
|
2,171
|
|
|
1,957
|
|
|
10.9
|
|
|
(1)
|
Other employee incentives and benefits includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), warrant and retention program plans, agency fees and other employee related expenses.
|
•
|
A decrease of $17.6 million in expenses related to incentive compensation plans and ESOP, reflective primarily of current expectations for our updated internal performance estimates for 2016.
|
•
|
An increase of $8.7 million in salaries and wages, primarily due to an increase in the number of average full-time employees ("FTE"). Average FTEs increased by
223
to
2,182
FTEs for the
three months ended
June 30, 2016
, compared to
1,959
FTEs for the comparable
2015
period.
|
•
|
A decrease of
$19.5 million
in expenses related to incentive compensation plans and ESOP, reflective primarily of current expectations for our updated internal performance estimates for 2016.
|
•
|
An increase of
$16.7 million
in salaries and wages, due primarily to an increase in the number of average FTEs, which increased by
214
to
2,171
average FTEs in the
six months ended
June 30, 2016
, compared to
1,957
average FTEs for the comparable
2015
period.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Lending and other client related processing costs
|
|
$
|
3,541
|
|
|
$
|
3,704
|
|
|
(4.4
|
)%
|
|
$
|
7,836
|
|
|
$
|
7,253
|
|
|
8.0
|
%
|
Telephone
|
|
2,416
|
|
|
2,544
|
|
|
(5.0
|
)
|
|
4,649
|
|
|
4,503
|
|
|
3.2
|
|
||||
Data processing services
|
|
2,387
|
|
|
1,358
|
|
|
75.8
|
|
|
4,216
|
|
|
3,191
|
|
|
32.1
|
|
||||
Postage and supplies
|
|
784
|
|
|
727
|
|
|
7.8
|
|
|
1,574
|
|
|
1,492
|
|
|
5.5
|
|
||||
Dues and publications
|
|
647
|
|
|
697
|
|
|
(7.2
|
)
|
|
1,449
|
|
|
1,282
|
|
|
13.0
|
|
||||
Other
|
|
4,191
|
|
|
5,279
|
|
|
(20.6
|
)
|
|
9,035
|
|
|
10,110
|
|
|
(10.6
|
)
|
||||
Total other noninterest expense
|
|
$
|
13,966
|
|
|
$
|
14,309
|
|
|
(2.4
|
)
|
|
$
|
28,759
|
|
|
$
|
27,831
|
|
|
3.3
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Net interest income (1)
|
|
$
|
(55
|
)
|
|
$
|
(2
|
)
|
|
NM
|
|
|
$
|
(58
|
)
|
|
$
|
(4
|
)
|
|
NM
|
|
Noninterest (income) loss (1)
|
|
(1,176
|
)
|
|
(7,382
|
)
|
|
(84.1
|
)
|
|
2,577
|
|
|
(21,435
|
)
|
|
(112.0
|
)
|
||||
Noninterest expense (1)
|
|
258
|
|
|
242
|
|
|
6.6
|
|
|
167
|
|
|
534
|
|
|
(68.7
|
)
|
||||
Carried interest allocation (2)
|
|
(443
|
)
|
|
(1,174
|
)
|
|
(62.3
|
)
|
|
(1,525
|
)
|
|
(1,285
|
)
|
|
18.7
|
|
||||
Net (income) loss attributable to noncontrolling interests
|
|
$
|
(1,416
|
)
|
|
$
|
(8,316
|
)
|
|
(83.0
|
)
|
|
$
|
1,161
|
|
|
$
|
(22,190
|
)
|
|
(105.2
|
)
|
|
(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.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Net interest income
|
|
$
|
254,680
|
|
|
$
|
203,931
|
|
|
24.9
|
%
|
|
$
|
510,858
|
|
|
$
|
407,680
|
|
|
25.3
|
%
|
Provision for loan losses
|
|
(36,454
|
)
|
|
(25,592
|
)
|
|
42.4
|
|
|
(69,169
|
)
|
|
(32,052
|
)
|
|
115.8
|
|
||||
Noninterest income
|
|
77,310
|
|
|
66,031
|
|
|
17.1
|
|
|
152,069
|
|
|
129,224
|
|
|
17.7
|
|
||||
Noninterest expense
|
|
(147,423
|
)
|
|
(145,339
|
)
|
|
1.4
|
|
|
(301,629
|
)
|
|
(283,787
|
)
|
|
6.3
|
|
||||
Income before income tax expense
|
|
$
|
148,113
|
|
|
$
|
99,031
|
|
|
49.6
|
|
|
$
|
292,129
|
|
|
$
|
221,065
|
|
|
32.1
|
|
Total average loans, net of unearned income
|
|
$
|
16,026,605
|
|
|
$
|
12,607,066
|
|
|
27.1
|
|
|
$
|
15,473,170
|
|
|
$
|
12,556,506
|
|
|
23.2
|
|
Total average assets
|
|
40,703,091
|
|
|
37,033,535
|
|
|
9.9
|
|
|
41,118,263
|
|
|
36,311,405
|
|
|
13.2
|
|
||||
Total average deposits
|
|
36,690,002
|
|
|
33,713,123
|
|
|
8.8
|
|
|
37,263,823
|
|
|
33,094,710
|
|
|
12.6
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Net interest income
|
|
$
|
13,538
|
|
|
$
|
11,109
|
|
|
21.9
|
%
|
|
$
|
27,210
|
|
|
$
|
20,832
|
|
|
30.6
|
%
|
Reduction of (provision for) loan losses
|
|
121
|
|
|
(921
|
)
|
|
(113.1
|
)
|
|
(505
|
)
|
|
(913
|
)
|
|
(44.7
|
)
|
||||
Noninterest income
|
|
762
|
|
|
595
|
|
|
28.1
|
|
|
1,389
|
|
|
992
|
|
|
40.0
|
|
||||
Noninterest expense
|
|
(2,954
|
)
|
|
(3,231
|
)
|
|
(8.6
|
)
|
|
(6,359
|
)
|
|
(6,107
|
)
|
|
4.1
|
|
||||
Income before income tax expense
|
|
$
|
11,467
|
|
|
$
|
7,552
|
|
|
51.8
|
|
|
$
|
21,735
|
|
|
$
|
14,804
|
|
|
46.8
|
|
Total average loans, net of unearned income
|
|
$
|
1,986,659
|
|
|
$
|
1,541,016
|
|
|
28.9
|
|
|
$
|
1,929,239
|
|
|
$
|
1,457,547
|
|
|
32.4
|
|
Total average assets
|
|
2,007,009
|
|
|
1,536,508
|
|
|
30.6
|
|
|
1,933,123
|
|
|
1,457,570
|
|
|
32.6
|
|
||||
Total average deposits
|
|
1,115,599
|
|
|
1,084,632
|
|
|
2.9
|
|
|
1,123,167
|
|
|
1,167,823
|
|
|
(3.8
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||
Net interest (loss) income
|
|
$
|
(52
|
)
|
|
$
|
1
|
|
|
NM
|
|
|
$
|
(52
|
)
|
|
$
|
2
|
|
|
NM
|
|
Noninterest income
|
|
11,420
|
|
|
19,909
|
|
|
(42.6
|
)%
|
|
13,873
|
|
|
40,587
|
|
|
(65.8
|
)%
|
||||
Noninterest expense
|
|
(3,684
|
)
|
|
(3,704
|
)
|
|
(0.5
|
)
|
|
(7,597
|
)
|
|
(7,190
|
)
|
|
5.7
|
|
||||
Income before income tax expense
|
|
$
|
7,684
|
|
|
$
|
16,206
|
|
|
(52.6
|
)
|
|
$
|
6,224
|
|
|
$
|
33,399
|
|
|
(81.4
|
)
|
Total average assets
|
|
$
|
331,500
|
|
|
$
|
330,016
|
|
|
0.4
|
|
|
$
|
340,256
|
|
|
$
|
335,690
|
|
|
1.4
|
|
|
•
|
Net gains on investment securities of $6.7 million for the
three months ended
June 30, 2016
, compared to net gains of $15.7 million for the comparable
2015
period. The gains on investment securities of $6.7 million for the
three months ended
June 30, 2016
were driven primarily by distribution gains from our strategic venture capital fund investments and net unrealized valuation increases from our managed funds of funds.
|
•
|
Fund management fees of $4.3 million compared to $3.9 million for the comparable 2015 period. The increase was due primarily to the addition of new managed funds at SVB Capital.
|
•
|
Net gains on investment securities of $4.8 million for the
six months ended
June 30, 2016
, compared to net gains of $30.6 million for the comparable
2015
period. The net gains on investment securities of $4.8 million for the
six months ended
June 30, 2016
were driven primarily by distribution gains from our strategic venture capital fund investments, partially offset by net unrealized valuation decreases from our managed funds of funds due to the decrease in market prices of public positions held by the fund investments in the portfolio.
|
•
|
Fund management fees of $8.9 million compared to
$7.6 million
for the comparable 2015 period. The increase was due primarily to the addition of new managed funds at SVB Capital.
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
(Dollars in thousands)
|
|
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)
|
|
$
|
144,227
|
|
|
$
|
42,210
|
|
|
$
|
152,237
|
|
|
$
|
44,485
|
|
Other venture capital investments (2)
|
|
2,040
|
|
|
218
|
|
|
2,040
|
|
|
218
|
|
||||
Other securities (fair value accounting) (3)
|
|
280
|
|
|
61
|
|
|
548
|
|
|
124
|
|
||||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
82,214
|
|
|
64,469
|
|
|
85,705
|
|
|
69,314
|
|
||||
Debt funds
|
|
19,239
|
|
|
19,239
|
|
|
21,970
|
|
|
21,970
|
|
||||
Other investments (4)
|
|
120,721
|
|
|
120,721
|
|
|
118,532
|
|
|
118,532
|
|
||||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
117,379
|
|
|
117,379
|
|
|
120,676
|
|
|
120,676
|
|
||||
Other investments
|
|
24,156
|
|
|
24,156
|
|
|
18,882
|
|
|
18,882
|
|
||||
Investments in qualified affordable housing projects
|
|
153,798
|
|
|
153,798
|
|
|
154,356
|
|
|
154,356
|
|
||||
Total non-marketable and other securities
|
|
$
|
664,054
|
|
|
$
|
542,251
|
|
|
$
|
674,946
|
|
|
$
|
548,557
|
|
|
(1)
|
The following table shows the amounts of venture capital and private equity fund investments held by the following funds and amounts attributable to SVBFG for each fund at
June 30, 2016
and
December 31, 2015
:
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
(Dollars in thousands)
|
|
Carrying value (as reported)
|
|
Amount attributable to SVBFG
|
|
Carrying value (as reported)
|
|
Amount attributable to SVBFG
|
||||||||
SVB Strategic Investors Fund, LP
|
|
$
|
18,062
|
|
|
$
|
2,269
|
|
|
$
|
20,794
|
|
|
$
|
2,612
|
|
SVB Capital Preferred Return Fund, LP
|
|
58,220
|
|
|
12,548
|
|
|
60,619
|
|
|
13,064
|
|
||||
SVB Capital—NT Growth Partners, LP
|
|
60,789
|
|
|
20,237
|
|
|
62,983
|
|
|
20,967
|
|
||||
Other private equity fund
|
|
7,156
|
|
|
7,156
|
|
|
7,841
|
|
|
7,842
|
|
||||
Total venture capital and private equity fund investments
|
|
$
|
144,227
|
|
|
$
|
42,210
|
|
|
$
|
152,237
|
|
|
$
|
44,485
|
|
(2)
|
The following table shows the amounts of other venture capital investments held by the following funds and amounts attributable to SVBFG for each fund at
June 30, 2016
and
December 31, 2015
:
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
(Dollars in thousands)
|
|
Carrying value (as reported)
|
|
Amount attributable to SVBFG
|
|
Carrying value (as reported)
|
|
Amount attributable to SVBFG
|
||||||||
Silicon Valley BancVentures, LP
|
|
$
|
2,040
|
|
|
$
|
218
|
|
|
$
|
2,040
|
|
|
$
|
218
|
|
Total other venture capital investments
|
|
$
|
2,040
|
|
|
$
|
218
|
|
|
$
|
2,040
|
|
|
$
|
218
|
|
(3)
|
Investments classified as other securities (fair value accounting) represent direct equity investments in public companies held by our consolidated funds.
|
(4)
|
The following table shows the amounts of our other investments (equity method accounting) at
June 30, 2016
and
December 31, 2015
:
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
(Dollars in thousands)
|
|
Carrying value (as reported)
|
|
Amount attributable to SVBFG
|
|
Carrying value (as reported)
|
|
Amount attributable to SVBFG
|
||||||||
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
China Joint Venture investment
|
|
$
|
78,074
|
|
|
$
|
78,074
|
|
|
$
|
78,799
|
|
|
$
|
78,799
|
|
Other investments
|
|
42,647
|
|
|
42,647
|
|
|
39,733
|
|
|
39,733
|
|
||||
Total other investments
|
|
$
|
120,721
|
|
|
$
|
120,721
|
|
|
$
|
118,532
|
|
|
$
|
118,532
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||
Software and internet
|
|
$
|
5,570,953
|
|
|
29.4
|
%
|
|
$
|
5,482,110
|
|
|
32.5
|
%
|
Hardware
|
|
1,131,574
|
|
|
6.0
|
|
|
1,080,231
|
|
|
6.4
|
|
||
Private equity/venture capital
|
|
7,129,763
|
|
|
37.6
|
|
|
5,511,929
|
|
|
32.7
|
|
||
Life science/healthcare
|
|
1,793,880
|
|
|
9.5
|
|
|
1,724,545
|
|
|
10.2
|
|
||
Premium wine
|
|
192,569
|
|
|
1.0
|
|
|
202,808
|
|
|
1.2
|
|
||
Other
|
|
381,143
|
|
|
2.0
|
|
|
314,813
|
|
|
1.9
|
|
||
Total commercial loans
|
|
16,199,882
|
|
|
85.5
|
|
|
14,316,436
|
|
|
84.9
|
|
||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
||||||
Premium wine
|
|
638,539
|
|
|
3.4
|
|
|
646,587
|
|
|
3.8
|
|
||
Consumer
|
|
1,747,144
|
|
|
9.2
|
|
|
1,543,340
|
|
|
9.2
|
|
||
Other
|
|
44,671
|
|
|
0.2
|
|
|
45,194
|
|
|
0.3
|
|
||
Total real estate secured loans
|
|
2,430,354
|
|
|
12.8
|
|
|
2,235,121
|
|
|
13.3
|
|
||
Construction loans
|
|
80,044
|
|
|
0.4
|
|
|
78,862
|
|
|
0.5
|
|
||
Consumer loans
|
|
239,622
|
|
|
1.3
|
|
|
226,712
|
|
|
1.3
|
|
||
Total gross loans
|
|
$
|
18,949,902
|
|
|
100.0
|
|
|
$
|
16,857,131
|
|
|
100.0
|
|
|
|
June 30, 2016
|
||||||||||||||||||||||
(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
|
|
$
|
1,309,571
|
|
|
$
|
913,650
|
|
|
$
|
1,380,229
|
|
|
$
|
986,497
|
|
|
$
|
981,006
|
|
|
$
|
5,570,953
|
|
Hardware
|
|
237,957
|
|
|
202,632
|
|
|
248,985
|
|
|
240,299
|
|
|
201,701
|
|
|
1,131,574
|
|
||||||
Private equity/venture capital
|
|
649,287
|
|
|
604,823
|
|
|
974,119
|
|
|
1,046,793
|
|
|
3,854,741
|
|
|
7,129,763
|
|
||||||
Life science/healthcare
|
|
332,201
|
|
|
388,030
|
|
|
453,240
|
|
|
400,630
|
|
|
219,779
|
|
|
1,793,880
|
|
||||||
Premium wine
|
|
71,126
|
|
|
31,329
|
|
|
48,965
|
|
|
41,149
|
|
|
—
|
|
|
192,569
|
|
||||||
Other
|
|
104,790
|
|
|
33,948
|
|
|
77,318
|
|
|
50,924
|
|
|
114,163
|
|
|
381,143
|
|
||||||
Commercial loans
|
|
2,704,932
|
|
|
2,174,412
|
|
|
3,182,856
|
|
|
2,766,292
|
|
|
5,371,390
|
|
|
16,199,882
|
|
||||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premium wine
|
|
154,021
|
|
|
174,193
|
|
|
203,642
|
|
|
106,683
|
|
|
—
|
|
|
638,539
|
|
||||||
Consumer
|
|
1,498,534
|
|
|
206,165
|
|
|
42,445
|
|
|
—
|
|
|
—
|
|
|
1,747,144
|
|
||||||
Other
|
|
8,138
|
|
|
—
|
|
|
15,000
|
|
|
21,533
|
|
|
—
|
|
|
44,671
|
|
||||||
Real estate secured loans
|
|
1,660,693
|
|
|
380,358
|
|
|
261,087
|
|
|
128,216
|
|
|
—
|
|
|
2,430,354
|
|
||||||
Construction loans
|
|
16,036
|
|
|
23,777
|
|
|
40,231
|
|
|
—
|
|
|
—
|
|
|
80,044
|
|
||||||
Consumer loans
|
|
89,030
|
|
|
32,369
|
|
|
12,506
|
|
|
—
|
|
|
105,717
|
|
|
239,622
|
|
||||||
Total gross loans
|
|
$
|
4,470,691
|
|
|
$
|
2,610,916
|
|
|
$
|
3,496,680
|
|
|
$
|
2,894,508
|
|
|
$
|
5,477,107
|
|
|
$
|
18,949,902
|
|
|
|
December 31, 2015
|
||||||||||||||||||||||
(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
|
|
$
|
1,365,460
|
|
|
$
|
974,946
|
|
|
$
|
1,250,192
|
|
|
$
|
844,092
|
|
|
$
|
1,047,420
|
|
|
$
|
5,482,110
|
|
Hardware
|
|
225,688
|
|
|
206,124
|
|
|
256,339
|
|
|
216,943
|
|
|
175,137
|
|
|
1,080,231
|
|
||||||
Private equity/venture capital
|
|
498,606
|
|
|
582,871
|
|
|
830,350
|
|
|
820,379
|
|
|
2,779,723
|
|
|
5,511,929
|
|
||||||
Life science/healthcare
|
|
309,877
|
|
|
426,619
|
|
|
367,879
|
|
|
410,281
|
|
|
209,889
|
|
|
1,724,545
|
|
||||||
Premium wine
|
|
76,372
|
|
|
29,823
|
|
|
74,319
|
|
|
22,294
|
|
|
—
|
|
|
202,808
|
|
||||||
Other
|
|
115,618
|
|
|
43,203
|
|
|
45,837
|
|
|
27,678
|
|
|
82,477
|
|
|
314,813
|
|
||||||
Commercial loans
|
|
2,591,621
|
|
|
2,263,586
|
|
|
2,824,916
|
|
|
2,341,667
|
|
|
4,294,646
|
|
|
14,316,436
|
|
||||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premium wine
|
|
156,754
|
|
|
170,155
|
|
|
237,373
|
|
|
82,305
|
|
|
—
|
|
|
646,587
|
|
||||||
Consumer loans
|
|
1,340,750
|
|
|
175,750
|
|
|
26,840
|
|
|
—
|
|
|
—
|
|
|
1,543,340
|
|
||||||
Other
|
|
8,261
|
|
|
—
|
|
|
15,000
|
|
|
21,933
|
|
|
—
|
|
|
45,194
|
|
||||||
Real estate secured loans
|
|
1,505,765
|
|
|
345,905
|
|
|
279,213
|
|
|
104,238
|
|
|
—
|
|
|
2,235,121
|
|
||||||
Construction loans
|
|
9,728
|
|
|
37,924
|
|
|
31,210
|
|
|
—
|
|
|
—
|
|
|
78,862
|
|
||||||
Consumer loans
|
|
87,324
|
|
|
35,748
|
|
|
—
|
|
|
29,140
|
|
|
74,500
|
|
|
226,712
|
|
||||||
Total gross loans
|
|
$
|
4,194,438
|
|
|
$
|
2,683,163
|
|
|
$
|
3,135,339
|
|
|
$
|
2,475,045
|
|
|
$
|
4,369,146
|
|
|
$
|
16,857,131
|
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Gross nonaccrual, past due, and restructured loans:
|
|
|
|
|
||||
Nonaccrual loans
|
|
$
|
124,319
|
|
|
$
|
123,392
|
|
Loans past due 90 days or more still accruing interest
|
|
412
|
|
|
—
|
|
||
Total nonperforming loans
|
|
124,731
|
|
|
123,392
|
|
||
OREO and other foreclosed assets
|
|
—
|
|
|
—
|
|
||
Total nonperforming assets
|
|
$
|
124,731
|
|
|
$
|
123,392
|
|
Performing TDRs
|
|
$
|
4,316
|
|
|
$
|
10,635
|
|
Nonperforming loans as a percentage of total gross loans
|
|
0.66
|
%
|
|
0.73
|
%
|
||
Nonperforming assets as a percentage of total assets
|
|
0.29
|
|
|
0.28
|
|
||
Allowance for loan losses
|
|
$
|
244,723
|
|
|
$
|
217,613
|
|
As a percentage of total gross loans
|
|
1.29
|
%
|
|
1.29
|
%
|
||
As a percentage of total gross nonperforming loans
|
|
196.20
|
|
|
176.36
|
|
||
Allowance for loan losses for nonaccrual loans
|
|
$
|
59,856
|
|
|
$
|
51,844
|
|
As a percentage of total gross loans
|
|
0.32
|
%
|
|
0.31
|
%
|
||
As a percentage of total gross nonperforming loans
|
|
47.99
|
|
|
42.02
|
|
||
Allowance for loan losses for total gross performing loans
|
|
$
|
184,867
|
|
|
$
|
165,769
|
|
As a percentage of total gross loans
|
|
0.98
|
%
|
|
0.98
|
%
|
||
As a percentage of total gross performing loans
|
|
0.98
|
|
|
0.99
|
|
||
Total gross loans
|
|
$
|
18,949,902
|
|
|
$
|
16,857,131
|
|
Total gross performing loans
|
|
18,825,171
|
|
|
16,733,739
|
|
||
Reserve for unfunded credit commitments (1)
|
|
34,889
|
|
|
34,415
|
|
||
As a percentage of total unfunded credit commitments
|
|
0.23
|
%
|
|
0.22
|
%
|
||
Total unfunded credit commitments (2)
|
|
$
|
15,502,488
|
|
|
$
|
15,614,359
|
|
|
(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.
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||
Derivative assets, gross (1)
|
|
$
|
193,117
|
|
|
$
|
175,083
|
|
|
10.3
|
%
|
Foreign exchange spot contract assets, gross
|
|
103,037
|
|
|
142,832
|
|
|
(27.9
|
)
|
||
Accrued interest receivable
|
|
107,323
|
|
|
107,604
|
|
|
(0.3
|
)
|
||
FHLB and Federal Reserve Bank stock
|
|
63,166
|
|
|
56,991
|
|
|
10.8
|
|
||
Accounts receivable
|
|
51,287
|
|
|
48,662
|
|
|
5.4
|
|
||
Net deferred tax assets
|
|
1,555
|
|
|
73,941
|
|
|
(97.9
|
)
|
||
Other assets
|
|
136,058
|
|
|
104,594
|
|
|
30.1
|
|
||
Total accrued interest receivable and other assets
|
|
$
|
655,543
|
|
|
$
|
709,707
|
|
|
(7.6
|
)
|
|
(1)
|
See “Derivatives” section below.
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||
Assets:
|
|
|
|
|
|
|
|||||
Equity warrant assets
|
|
$
|
129,800
|
|
|
$
|
137,105
|
|
|
(5.3
|
)%
|
Foreign exchange forward and option contracts
|
|
52,845
|
|
|
31,237
|
|
|
69.2
|
|
||
Interest rate swaps
|
|
1,918
|
|
|
2,768
|
|
|
(30.7
|
)
|
||
Client interest rate derivatives
|
|
8,554
|
|
|
3,973
|
|
|
115.3
|
|
||
Total derivative assets
|
|
$
|
193,117
|
|
|
$
|
175,083
|
|
|
10.3
|
|
Liabilities:
|
|
|
|
|
|
|
|||||
Foreign exchange forward and option contracts
|
|
$
|
(45,540
|
)
|
|
$
|
(26,353
|
)
|
|
72.8
|
|
Client interest rate derivatives
|
|
(9,655
|
)
|
|
(4,384
|
)
|
|
120.2
|
|
||
Total derivative liabilities
|
|
$
|
(55,195
|
)
|
|
$
|
(30,737
|
)
|
|
79.6
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Balance, beginning of period
|
|
$
|
130,670
|
|
|
$
|
124,456
|
|
|
$
|
137,105
|
|
|
$
|
116,604
|
|
New equity warrant assets
|
|
2,220
|
|
|
2,846
|
|
|
4,606
|
|
|
5,333
|
|
||||
Non-cash increases in fair value
|
|
7,345
|
|
|
9,146
|
|
|
7,494
|
|
|
20,110
|
|
||||
Exercised equity warrant assets
|
|
(9,666
|
)
|
|
(13,830
|
)
|
|
(18,020
|
)
|
|
(19,137
|
)
|
||||
Terminated equity warrant assets
|
|
(769
|
)
|
|
(114
|
)
|
|
(1,385
|
)
|
|
(406
|
)
|
||||
Balance, end of period
|
|
$
|
129,800
|
|
|
$
|
122,504
|
|
|
$
|
129,800
|
|
|
$
|
122,504
|
|
(Dollars in thousands)
|
|
June 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||
Foreign exchange spot contract liabilities, gross
|
|
$
|
168,774
|
|
|
$
|
154,699
|
|
|
9.1
|
%
|
Accrued compensation
|
|
71,276
|
|
|
151,134
|
|
|
(52.8
|
)
|
||
Reserve for unfunded credit commitments
|
|
34,889
|
|
|
34,415
|
|
|
1.4
|
|
||
Derivative liabilities, gross (1)
|
|
55,195
|
|
|
30,737
|
|
|
79.6
|
|
||
Other
|
|
272,612
|
|
|
268,109
|
|
|
1.7
|
|
||
Total other liabilities
|
|
$
|
602,746
|
|
|
$
|
639,094
|
|
|
(5.7
|
)
|
|
(1)
|
See “Derivatives” section above.
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
(Dollars in thousands)
|
|
Total Balance
|
|
Level 3
|
|
Total Balance
|
|
Level 3
|
||||||||
Assets carried at fair value
|
|
$
|
13,398,281
|
|
|
$
|
129,851
|
|
|
$
|
16,710,656
|
|
|
$
|
137,208
|
|
As a percentage of total assets
|
|
31.1
|
%
|
|
0.3
|
%
|
|
37.4
|
%
|
|
0.3
|
%
|
||||
Liabilities carried at fair value
|
|
$
|
55,195
|
|
|
$
|
—
|
|
|
$
|
30,737
|
|
|
$
|
—
|
|
As a percentage of total liabilities
|
|
0.1
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
—
|
%
|
||||
As a percentage of assets carried at fair value
|
|
|
|
1.0
|
%
|
|
|
|
0.8
|
%
|
|
|
|
|
|
|
Minimum Ratios under Applicable Regulatory Capital Adequacy Requirements
|
||||||
|
|
June 30,
2016 |
|
December 31, 2015
|
|
"Well Capitalized”
|
|
“Adequately Capitalized”
|
||||
SVB Financial:
|
|
|
|
|
|
|
|
|
||||
CET 1 risk-based capital ratio
|
|
12.43
|
%
|
|
12.28
|
%
|
|
6.5
|
%
|
|
4.5
|
%
|
Tier 1 risk-based capital ratio
|
|
12.89
|
|
|
12.83
|
|
|
8.0
|
|
|
6.0
|
|
Total risk-based capital ratio
|
|
13.92
|
|
|
13.84
|
|
|
10.0
|
|
|
8.0
|
|
Tier 1 leverage ratio
|
|
8.08
|
|
|
7.63
|
|
|
N/A
|
|
|
4.0
|
|
Tangible common equity to tangible assets ratio (1)
|
|
8.13
|
|
|
7.16
|
|
|
N/A
|
|
|
N/A
|
|
Tangible common equity to risk-weighted assets ratio (1)
|
|
12.91
|
|
|
12.34
|
|
|
N/A
|
|
|
N/A
|
|
Bank:
|
|
|
|
|
|
|
|
|
||||
CET 1 risk-based capital ratio
|
|
12.57
|
%
|
|
12.52
|
%
|
|
6.5
|
%
|
|
4.5
|
%
|
Tier 1 risk-based capital ratio
|
|
12.57
|
|
|
12.52
|
|
|
8.0
|
|
|
6.0
|
|
Total risk-based capital ratio
|
|
13.65
|
|
|
13.60
|
|
|
10.0
|
|
|
8.0
|
|
Tier 1 leverage ratio
|
|
7.56
|
|
|
7.09
|
|
|
5.0
|
|
|
4.0
|
|
Tangible common equity to tangible assets ratio (1)
|
|
7.90
|
|
|
6.95
|
|
|
N/A
|
|
|
N/A
|
|
Tangible common equity to risk-weighted assets ratio (1)
|
|
13.07
|
|
|
12.59
|
|
|
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.
|
|
|
SVB Financial
|
|
Bank
|
||||||||||||
Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios)
|
|
June 30,
2016 |
|
December 31,
2015 |
|
June 30,
2016 |
|
December 31,
2015 |
||||||||
GAAP SVBFG stockholders’ equity
|
|
$
|
3,505,578
|
|
|
$
|
3,198,134
|
|
|
$
|
3,359,097
|
|
|
$
|
3,059,045
|
|
Tangible common equity
|
|
$
|
3,505,578
|
|
|
$
|
3,198,134
|
|
|
$
|
3,359,097
|
|
|
$
|
3,059,045
|
|
GAAP Total assets
|
|
$
|
43,132,654
|
|
|
$
|
44,686,703
|
|
|
$
|
42,522,293
|
|
|
$
|
44,045,967
|
|
Tangible assets
|
|
$
|
43,132,654
|
|
|
$
|
44,686,703
|
|
|
$
|
42,522,293
|
|
|
$
|
44,045,967
|
|
Risk-weighted assets
|
|
$
|
27,145,857
|
|
|
$
|
25,919,594
|
|
|
$
|
25,691,978
|
|
|
$
|
24,301,043
|
|
Tangible common equity to tangible assets
|
|
8.13
|
%
|
|
7.16
|
%
|
|
7.90
|
%
|
|
6.95
|
%
|
||||
Tangible common equity to risk-weighted assets
|
|
12.91
|
|
|
12.34
|
|
|
13.07
|
|
|
12.59
|
|
|
|
Six months ended June 30,
|
||||||
(Dollars in thousands)
|
|
2016
|
|
2015
|
||||
Average cash and cash equivalents
|
|
$
|
2,294,562
|
|
|
$
|
2,094,365
|
|
Percentage of total average assets
|
|
5.2
|
%
|
|
5.4
|
%
|
||
Net cash provided by operating activities
|
|
$
|
142,067
|
|
|
$
|
210,879
|
|
Net cash provided by (used for) investing activities
|
|
2,028,151
|
|
|
(957,186
|
)
|
||
Net cash (used for) provided by financing activities
|
|
(1,819,018
|
)
|
|
1,560,843
|
|
||
Net increase in cash and cash equivalents
|
|
$
|
351,200
|
|
|
$
|
814,536
|
|
Change in interest rates (basis points)
(Dollars in thousands) |
|
Estimated
|
|
Estimated Increase/(Decrease) In EVE
|
|
Estimated
|
|
Estimated Increase/
(Decrease) In NII
|
||||||||||||||
|
EVE
|
|
Amount
|
|
Percent
|
|
NII
|
|
Amount
|
|
Percent
|
|||||||||||
June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
200
|
|
$
|
5,311,233
|
|
|
$
|
1,380,708
|
|
|
35.1
|
%
|
|
$
|
1,495,825
|
|
|
$
|
321,456
|
|
|
27.4
|
%
|
100
|
|
4,283,395
|
|
|
352,870
|
|
|
9.0
|
|
|
1,329,665
|
|
|
155,296
|
|
|
13.2
|
|
||||
—
|
|
3,930,525
|
|
|
—
|
|
|
—
|
|
|
1,174,369
|
|
|
—
|
|
|
—
|
|
||||
-100
|
|
4,432,725
|
|
|
502,200
|
|
|
12.8
|
|
|
1,119,372
|
|
|
(54,997
|
)
|
|
(4.7
|
)
|
||||
-200
|
|
4,413,014
|
|
|
482,489
|
|
|
12.3
|
|
|
1,113,410
|
|
|
(60,959
|
)
|
|
(5.2
|
)
|
||||
December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
200
|
|
$
|
6,007,061
|
|
|
$
|
1,783,649
|
|
|
42.2
|
%
|
|
$
|
1,454,889
|
|
|
$
|
268,242
|
|
|
22.6
|
%
|
100
|
|
5,166,410
|
|
|
942,998
|
|
|
22.3
|
|
|
1,318,584
|
|
|
131,937
|
|
|
11.1
|
|
||||
—
|
|
4,223,412
|
|
|
—
|
|
|
—
|
|
|
1,186,647
|
|
|
—
|
|
|
—
|
|
||||
-100
|
|
4,350,421
|
|
|
127,009
|
|
|
3.0
|
|
|
1,127,223
|
|
|
(59,424
|
)
|
|
(5.0
|
)
|
||||
-200
|
|
4,548,417
|
|
|
325,005
|
|
|
7.7
|
|
|
1,095,854
|
|
|
(90,793
|
)
|
|
(7.7
|
)
|
|
|
SVB Financial Group
|
|
|
|
Date: August 8, 2016
|
|
/s/ MICHAEL DESCHENEAUX
|
|
|
Michael Descheneaux
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
SVB Financial Group
|
|
|
|
Date: August 8, 2016
|
|
/s/ KAMRAN HUSAIN
|
|
|
Kamran Husain
|
|
|
Chief Accounting Officer
|
|
|
(Principal Accounting Officer)
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|||||
*10.1
|
|
1999 Employee Stock Purchase Plan
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
X
|
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
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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: August 8, 2016
|
|
/s/ GREG BECKER
|
|
|
Greg Becker
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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: August 8, 2016
|
|
/s/ MICHAEL DESCHENEAUX
|
|
|
Michael Descheneaux
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
Date: August 8, 2016
|
|
/s/ GREG BECKER
|
|
|
Greg Becker
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: August 8, 2016
|
|
/s/ MICHAEL DESCHENEAUX
|
|
|
Michael Descheneaux
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|