Contents 3 Important information regarding forward-looking statements and use of non-GAAP financial measures 4 Glossary 5 About SVB 10 Overview of Results 15 2019 Outlook and Long-Term Financial Objectives 27 Financial Performance: Balance Sheet 41 Financial Performance: Income Statement 52 Capital 55 Regulatory 57 Non-GAAP Reconciliations Q1 2019 Corporate Overview and Financial Results 2
Important information regarding forward-looking statements and use of non-GAAP financial measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance, and are subject to known and unknown risks and uncertainties, many of which may be beyond our control. You can identify these and other forward-looking statements by the use of words such as “becoming,” “may,” “will,” “should,” "could," "would," “predict,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “seek,” “expect,” “plan,” “intend,” the negative of such words, or comparable terminology. In this presentation, we make forward-looking statements discussing management’s expectations about, among other things: economic conditions; opportunities in the market; outlook on our clients' performance; our financial, credit, and business performance, including potential investment gains, loan growth, loan mix, loan yields, credit quality, deposits, noninterest income, and expense levels; our expected effective tax rate; and financial results, including the performance results of SVB Leerink for certain quarters in, and for the full year 2019, as well as 2020 and beyond. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we have based these expectations on our current beliefs as well as our assumptions, and such expectations may prove to be incorrect. We wish to caution you that such statements are just predictions and actual events or results may differ materially, due to changes in economic, business and regulatory factors and trends. Our actual results of operations and financial performance could differ significantly from those expressed in or implied by our management’s forward-looking statements. Important factors that could cause our actual results and financial condition to differ from the expectations stated in the forward-looking statements include, among others: market and economic conditions (including the general condition of the capital and equity markets, and IPO, M&A and financing activity levels) and the associated impact on us (including effects on client demand for our commercial and investment banking and other financial services, as well as on the valuations of our investments); changes in the volume and credit quality of our loans; the impact of changes in interest rates or market levels or factors affecting or affected by them, especially on our loan and investment portfolios; changes in the levels of our loans, deposits and client investment fund balances; changes in the performance or equity valuations of funds or companies in which we have invested or hold derivative instruments or equity warrant assets; variations from our expectations as to factors impacting our cost structure; changes in our assessment of the creditworthiness or liquidity of our clients or unanticipated effects of credit concentration risks which create or exacerbate deterioration of such creditworthiness or liquidity; variations from our expectations as to factors impacting the timing and level of employee share-based transactions; variations from our expectations as to factors impacting our estimate of our full-year effective tax rate; accounting changes, as required by Generally Accepted Accounting Principles (GAAP); and regulatory, tax or legal changes or their impact on us. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, including (i) our latest Annual Report on Form 10-K; (ii) our latest Quarterly Report on Form 10-Q; and (iii) our most recent earnings release filed on Form 8-K. These documents contain and identify important risk factors that could cause the Company’s actual results to differ materially from those contained in our projections or other forward-looking statements. All forward-looking statements included in this presentation are made only as of the date of this presentation. We assume no obligation and do not intend to revise or update any forward-looking statements contained in this presentation, except as required by law. This presentation shall not constitute an offer or solicitation in connection with any securities. Use of Non-GAAP Financial Measures To supplement our financial disclosures that are presented in accordance with GAAP, we use certain non-GAAP measures of financial performance (including, but not limited to, non-GAAP core fee income, non-GAAP noninterest income, non-GAAP net gains on investment securities, non-GAAP non-marketable and other equity securities, non-GAAP noninterest expense and non- GAAP financial ratios) of financial performance. These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirement. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures (as applicable), provide meaningful supplemental information regarding our performance by: (i) excluding amounts attributable to non-controlling interests for which we effectively do not receive the economic benefit or cost of, where indicated, or (ii) providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, net income or other financial measures prepared in accordance with GAAP. Under the “Non-GAAP reconciliations” section at the end of this presentation, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP financial measures used in this presentation, or a reconciliation of the non-GAAP calculation of the financial measure. Please refer to that section for more information. Additionally, from time to time, we may make reference to the non-GAAP financial metric of Core EPS in our earnings call and other investor presentations. Non-GAAP Core EPS consists of our net income available to common stockholders less gains or losses on investment securities and equity warrant assets, net of tax, divided by our diluted weighted average common shares outstanding. Our management believes this measure to be a useful assessment of our performance as it relates to our core business because it excludes certain financial items where performance is typically subject to market or other conditions beyond our control. A reconciliation of Core EPS to the closest corresponding GAAP measure is not available with respect to future goals due to our inability to provide a quantitative reconciliation to such measure. Q1 2019 Corporate Overview and Financial Results 3
Glossary Acronyms Other Measures Measures Non-GAAP The following termsareusedthroughoutthispresentationtoreferSVB-specific tocertain metrics: Q1 2019 Q1 2019 • • • • • • • • • • VC/PE – NCO – NCI – LIHTC – Fixed Income Securities Total Client Funds– effectively donotreceive theeconomic benefitorcost. Thismeasureexcludestononcontrolling interest. interestsforapplicable, amountsattributable whichwe andcarried result ofexercised portfolio, when equitywarrantassets,gainsandlossesfromsalesofour AFSdebtsecurities heldasa whichincludepublicequitysecurities gains andlossesfromournon-marketable andotherequitysecurities, NetofNon-ControllingGains (losses)onInvestment Securities, Interests beyond ourcontrol. related toSVBandcertainfinancialitemswhereperformance Leerink istypically subjecttomarket orotherconditions andequitywarrantassetsSVB Thisratioexcludes Leerink. investment securities excludes income andexpenses Ratio– Core OperatingEfficiency commissions fromtheacquisitionofSVB Leerink. exchange andlending-related fees, inaggregate. InQ1'19, core fee income includesinvestmentbankingrevenueand Core Fee Income – to ourinabilityprovideaquantitativereconciliation tosuchmeasure. reconciliation ofCore EPStotheclosestcorresponding GAAPmeasureisnotavailable withrespecttofuturegoals due financial itemswhereperformance istypically subjecttomarket orotherconditions beyondourcontrol.A measure tobeausefulassessmentofourperformance asitrelatestoourcore businessbecauseitexcludes certain warrant assets,netoftax;dividedbydilutedaverage common sharesoutstanding. Ourmanagement believesthis Core EPS – Corporate andFinancial Results Overview Corporate andFinancial Results Overview Non-controlling interests Net charge-off Low income housingtaxcreditfunds Venture Equity Capital/Private Net income available andequity tocommon stockholderslessgainsorlossesoninvestmentsecurities (Please see non-GAAP reconciliations (Pleaseseenon-GAAP attheendofthispresentationfor moreinformation) Fees clientinvestments,creditcards,depositservicecharges, foreign fromlettersofcredit, The sumofon-balance sheetdepositsandoff-balance sheetclientinvestment funds. – Available-for-sale ("AFS") heldonthebalance sheet. ("HTM")securities andheld-to-maturity Non-interest expense dividedbytotalrevenue, afteradjustingfor gainsorlosseson – Net gains on investment securities include Net gainsoninvestmentsecurities 4 SVB 2014 4:3
SVB: A unique financial services company Over 35 years of focus on innovation companies, investors and influencers Robust client funds franchise $58B assets Strong market position Diversified revenue streams $28B loans Global presence $137B total client funds Average balances for Q1'19 Q1 2019 Corporate Overview and Financial Results 6
(Early Stage) Accelerator Revenue <$5M Q1 2019 Corporate andFinancial Results Overview Technology +Life&Healthcare Science $5M-$75M Growth Revenue Innovation Economy We serve theglobal Corp Fin Corp Revenue >$75M Venture Capital Private Equity Investors Investors, Executives Entrepreneurs, Individuals Influencers: 7 SVB 2014 4:3
Serving innovative companies and the investors and individuals behind them Silicon Valley SVB Private SVB Capital Bank Private venture Bank/Wealth SVB Leerink Global commercial investing Advisory Investment banking banking expertise, oversight Private banking and services focused on for innovators, and fund management investment strategies for healthcare and life enterprises influencers in the science companies and investors innovation ecosystem Q1 2019 Corporate Overview and Financial Results 8
A strong, seasoned management team • • Q1 2019 Q1 2019 Diverse experience andskillsets to helpdirectourgrowth Average tenureof13years atSVB * Effective May1,2019 Corporate andFinancial Results Overview Corporate andFinancial Results Overview 5 years atSVB GENERAL COUNSEL Michael Zuckert 6 years atSVB CHIEF MARKETINGOFFICER Michelle Draper 23 years atSVB PRESIDENT OFSVB CAPITAL* John China 2 years atSVB CHIEF FINANCIALOFFICER Dan Beck 15 years atSVB OFFICER CHIEF HUMANRESOURCES Chris Edmonds-Waters 10 years atSVB CHIEF OPERATIONS OFFICER Phil Cox 26 years26 atSVB SVB FINANCIALGROUP PRESIDENT ANDCEO Greg Becker 3 years atSVB CHIEF RISKOFFICER Laura Izurieta 13 years atSVB SILICON VALLEY BANK PRESIDENT Mike Descheneaux 27 years atSVB CHIEF CREDIT OFFICER Marc Cadieux 9 SVB 2014 4:3
Q1'19 takeaways (vs. Q4'18) EPS: $5.44 Net Income: $289 million • Outstanding Growth • Warrant gains: $21.3M – Average total client funds: +2.2% • Investment gains, net of NCI: $25.6M – Average loans: +3.3% • Stable credit quality despite higher – Net interest income: -0.3% nonaccrual loans (impacted by two fewer days in Q1 • Efficiency ratio: +46.10% – Core fee income: +5.6% • Bank Tier 1 Leverage ratio: 8.38% • Non-interest expense including SVB (+28 bps) Leerink: +18.9%* • Repurchased $116M of shares • Leerink EPS contribution of $0.11 EPS ($263M repurchased since inception of • Return on equity: 22.16% $500M share repurchase program Challenges • Public market volatility • Lower reinvestment rates and higher deposit costs (although still at industry-leading lows) • Market anxiety over U.S. - China trade tensions and weaker global economic indicators • Competition from banks, non-banks and market liquidity impact on loan growth *Excluding $60.5M of expenses for SVB Leerink operations in Q1'19 and $8.5M of SVB Leerink acquisition costs in Q1 2019 Corporate Overview and Financial Results 11 Q4'18, non-interest expenses increased 2.0%.
$ Millions $ Billions Key performance indicators security gainsfrom LeerinkCapitalbusiness. pre-taxincomeof$8.0Mwas recognizedinQ1'19. *SVB Leerinkincludes totalrevenueof$68.6Mconsisting ofinterestincome,noninterest incomefrominvestmentbanking andcommissionsinvestment $ $ 2 1 2 Q1 2019 Q1 2019 1 , 0 0 n 0 4 1 1 e 0 . 5 5 8 6 N t o e A Corporate andFinancial Results Overview Corporate andFinancial Results Overview $ $ f t 2 2 v 1 1 0 0 u I , 8 e 1 1 n 1 n . r 6 5 3 6 t a e 1 e g a r e r $ $ 2 e n 2 2 1 0 s L 0 1 , e 1 4 t . o 1 7 2 d 2 7 I a 0 n i n n c $ 2 s $ 2 o c 0 , 2 1 5 o m 0 1 , . 8 8 6 m 1 9 e 8 4 e $ Q 2 1 Q 8 $ ' 1 1 5 . 9 4 ' 1 1 3 9 $ Millions Core Fee Income, excluding SVB Leerink Investment Banking&Commissions (SVB Leerink) $ Billions 2 $ A $ $ $ 2 2 0 8 4 3 0 v 6 1 8 3 2 1 5 5 e . . . 5 8 4 2 r a C g o 2 $ $ 2 $ $ e 0 3 9 r 4 5 0 Avg. Client Investment Funds Avg. Deposits 1 1 e 4 1 2 1 T 6 6 . . . 6 5 7 2 o F e t a e $ 2 $ $ 2 l $ 1 0 3 4 7 0 I 2 C 7 5 8 1 n 1 3 9 . 7 . l 7 . 1 1 c i 2 e o n m $ 2 2 $ $ $ t 1 4 0 0 7 5 e 2 F 5 8 1 1 1 3 . . 6 u 8 8 . 1 1 2 n d $ Q $ Q $ s $ $ 1 $ 4 8 1 1 1 2 3 6 9 7 ' ' 5 1 1 7 1 . 4 . 4 4 8 . 9 7 9 1 $ Millions $ 2 2 2 7 0 . 0 5 8 1 7 1 0 5 N % 5 o n N $ 2 2 2 i e 8 0 . n 0 7 SVB Expenses,excluding Leerink SVB LeerinkExpenses 6 t 1 2 1 t 6 0 % 6 e I n r e t $ 3 e 2 s 1 2 . 0 r t , 0 0 0 e 1 5 1 E 1 7 s % 7 1 x t p M $ e 3 2 2 1 . a n 0 0 , 5 1 r 1 7 s 1 8 8 g % 8 e 8 i n 3 Q Q $ $ . $ 3 3 1 1 8 6 ' ' 6 0 1 1 1 1 6 % 5 9 9 12 SVB 2014 4:3
Quarterly highlights 2) 1) Return onaverage assets(annualized) (annualized) Return onaverage SVBFG stockholders’equity Effective taxrate (annualized) Net charge-offs /Average totalgross loans Non-interest expense controlling interests non-interest income,Non-GAAP netofnon- non-interest incomeGAAP Net interestincome Net interestmargin Average fixed income securities Change Average off-balancesheetclient investment funds Change Average deposits Change Average loans Change Average assets Net income available tocommon stockholders Diluted earnings pershare reform. Q4'17 included$37.6M ofadditionalincometaxexpense duetotherevaluationof deferred taxassetsandinvestments inlowincomehousingtaxcredit fundsfollowingtax Our effective taxrateiscalculated bydividingincometaxexpense bythesumofincomebefore incometaxexpenseandnet attributabletononcontrolling interests. This isanon-GAAP measure.Pleaseseenon-GAAP reconciliations atendofthispresentationformoreinformation. Q1 2019 Q1 2019 Corporate andFinancial Results Overview Corporate andFinancial Results Overview 2 1 $419.9M $265.4M $195.0M $142.5M $155.5M 27.50% 18.12% $64.4B $24.0B $46.1B $52.4B $23.8B 0.15% 3.38% 1.51% 11.8% Q1'18 $3.63 3.0% 6.1% 3.1% $466.4M $305.7M $237.8M $183.2M $192.7M 20.82% 24.53% $48.0B $54.4B $24.9B $25.2B $71.3B 0.22% 3.59% 10.8% 1.75% $4.42 Q2'18 4.0% 4.4% 3.8% $309.4M $203.4M $493.2M $274.8M $210.1M 22.46% 25.75% $79.6B $49.1B $56.5B $26.3B $25.5B 0.30% 3.62% 1.93% 11.6% Q3'18 $5.10 5.9% 3.9% 2.3% $307.6M $266.3M $186.7M $514.5M $177.9M 20.61% 28.28% $85.0B $49.1B $24.5B $57.6B 0.20% $27.5B 3.69% 1.83% $4.96 Q4'18 4.4% 6.9% 1.9% —% $280.4M $288.7M $365.7M $512.9M $277.1M 22.16% 27.12% $28.4B $49.7B $87.4B $57.5B (0.2)% 2.04% $22.1B 0.11% 3.81% $5.44 Q1'19 2.8% 3.3% 1.3% 13 SVB 2014 4:3
Return onaverage assets Return onaverage SVBFG stockholders’equity Effective taxrate Net charge-offs /Average total grossloans ratio operatingefficiency GAAP Non-interest expense controlling interests non-interestincome,Non-GAAP netofnon- non-interestincomeGAAP Net interestincome Net interestmargin Average fixed-income securities Change Average off-balancesheetclient investment funds Change Average deposits Change Average loans Change Average assets Net income available tocommon stockholders Diluted earnings pershare 2) 1) Annual highlights 2017 is$37.6M ofadditional income taxexpense duetotherevaluation ofdeferred tax assetsandinvestmentsinlowincome housingtaxcreditfunds following taxreform. Our effectivetaxrate iscalculatedbydividingincome taxexpense by the sumofincome before income taxexpense tononcontrolling andnetincome interests.Included in attributable Please seenon-GAAP reconciliations atend of thispresentationfor more information Q1 2019 Q1 2019 Corporate andFinancial Results Overview Corporate andFinancial Results Overview 2 1 $1,006.4M $780.0M $343.9M $472.8M $441.1M 53.50% 39.95% 11.18% $40.8B $14.8B $36.3B $39.2B 0.84% 0.30% $22.3B 30.6% 28.2% 28.3% 2.57% 23.9% $6.62 2015 $1,150.5M $448.5M $456.6M $859.8M $382.7M 10.90% 39.55% $44.0B 51.11% $43.4B $38.8B 0.46% $18.3B $21.5B 0.87% 23.8% 10.5% 2.72% 6.8% 2016 $7.31 7.7% $1,420.4M $1,010.7M $490.5M $527.8M $557.2M 45.02% 42.02% 12.38% $48.4B $22.4B $42.7B $51.5B $21.2B 3.05% 10.0% 0.27% 18.8% 1.01% 10.3% 15.7% $9.20 2017 $1,894.0M $1,188.2M $745.0M $707.0M $973.8M 45.02% 20.57% 26.52% $24.8B $48.1B $25.6B $55.2B $75.1B 0.22% $18.11 45.7% 1.76% 3.57% 14.2% 12.5% 21.1% 2018 14 SVB 2014 4:3
Q1 2019 Q1 2019 Term Financial Targets 2019 Outlook andLong- Corporate andFinancial Results Overview Corporate andFinancial Results Overview 15 SVB 2014 4:3
2019 full-year outlook Non-interest expense (excluding expenses Core fee incomeinvestment with banking Allowance for loanlossesfor totalgross Non-performing loans/total grossloans Non-performing Non-interest expense investment with performing loansasa%oftotalgross performing 3) 2) 1) related tonon-controlling interests) Current fullyear 2019 outlookcompared to2018results,includingexpected resultsofSVB Leerinkreflectiveofthecompleted Q1 2019 Q1 2019 4, 2019. Current fullyear outlook for2019comparedtofull-year 2018results,includingexpected resultsofSVBLeerinkreflective ofthecompletedacquisition onJanuary Non-GAAP measure. management's assumptions andforecastsregarding thisoutlook. As of 4/25/2019 Corporate andFinancial Results Overview Corporate andFinancial Results Overview Net loancharge-offs banking activities Net interestincome Net interestmargin Effective Tax Rate Average deposits performing loans performing Core fee income Business Driver Average loans activities ; comparedtofull-year2018results; assumesnorateincreases;pleaseseeourmostrecentFinancial Releaseforcompleteinformationon 2,3 2 2,3 2 2019 FullYear Outlookvs. 2018FullYear Increase atapercentage rateinthemid Increase atapercentage rateinthelow Between 0.20% and0.40% ofavg. acquisition on January 4, 2019 4, acquisition onJanuary Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Between 0.30% and0.50% of Between 26.0% and28.0% Between 3.70% and3.80% Comparable to2018levels the highsingledigits total grossloans total grossloans the lowtwenties the midteens the midteens the lowteens seventies Results thirties 1 Outlook decreased 3.80% frompreviousoutlookofbetween Outlook increased Outlook increased Outlook decreased Outlook decreased previous outlookofhighsixties previous outlookofhighteens previous outlookofhighteens previous outlookofmidteens Change from1/24/19 3.80% and3.90% No change No change No change No change No change No change No change tobetween3.70% and tolowseventiesfrom tolowtwentiesfrom tomidteensfrom tolowteensfrom 16 SVB 2014 4:3
Our market expectations for 2019 Positive influence from... • Healthy VC investment and fundraising • Another strong year for IPOs • Healthy liquidity and activity among SVB clients But with... • Fading market tailwinds • Flat to potentially down interest rates • Macro challenges: ◦ U.S. - China trade tensions ◦ Signs of softening global economy Fading market tailwinds, challenges...look at Greg's script. Market volatility ◦ Equity market volatility Fed monetary policy - unclear Govt. Shutdown, IPO market economic impact ◦ Potential U.S. Government closures • Continued intense competition Q1 2019 Corporate Overview and Financial Results 17
Themes and areas of focus in 2019 Themes • Continued healthy balance sheet and fee income growth • Stable credit quality • Healthy client markets Focus Areas • Ongoing investments in growth and efficiency • Leveraging client liquidity to drive revenues and growth • Gradually reducing the downside of asset sensitivity Fading market tailwinds, challenges...look at Greg's script. Market volatility Fed monetary policy - unclear Govt. Shutdown, IPO market economic impact Q1 2019 Corporate Overview and Financial Results 18
and efficiency Focus Area: Ongoing investments ingrowth • • • • • • Fee Income Initiatives: Growth ~10% ~15% Strategic Priorities: Risk management Digital Bank scalability Employee enablement& data infrastructure andgoverningDigitizing onboarding Global client andloan transaction volumes andprocessing costs Core feehigher income initiatives growth drive Q1 2019 Q1 2019 Corporate andFinancial Results Overview Corporate andFinancial Results Overview Priorities Strategic 1 of2 Growth Income Fee Other People People: ~70% drive long- termrevenuedrive growth inkey and Hiring areastosupport • • • • • • • Support for volumeSupport growth markets Competitive pay inhigh-cost Risk management Relationship Management Front sales office expansion Bank/Wealth Advisory Private Germany andCanadaexpansion 19 SVB 2014 4:3
tools, processes, analytics andpeople Investing toimprove operatingleveragethroughsystems, ourgrowth: andsupport processes speed key Streamline and meaningful ways clients inmore Engage with and efficiency Focus Area: Ongoing investments ingrowth Enhance Client ◦ ◦ ◦ Target Outcomes Experience Q1 2019 Q1 2019 2020 expense ratetarget: growth highsingledigits,assuming noratedecreases processes andimplementation ofscalablesolutions Improved futureoperating leverage Expanded product Corporate andFinancial Results Overview Corporate andFinancial Results Overview offerings with new opportunities for withnewopportunities offerings activities value add spent onnon- Minimize time performance optimize their Help employees Enablement Employee Improve 2 of through frameworks governance quality and Enhance data issues resolution of timely,Support Enhance Risk Management transformation revenue growth ofkey business efficiency efficiency term growth Improve long- efficiencies Optimize cost Drive Scalable Drive Long-term Growth Growth Advisory Bank andWealth Expand Private Canada to Germanyand Extend platform penetration Improve product client needs address evolving to offerings Expand product Drive RevenueDrive Growth 20 SVB 2014 4:3
Focus Area: Leveraging client liquidity • • • SVB's depositfranchiseisacompetitive advantage Q1 2019 Q1 2019 Low loan-to-depositratioof butremainmateriallylowerDeposit coststhanpeer rising totaldeposits) deposits 75% ofperiod-end Client operatingaccounts ofourdeposits(noninterestbearing make upthemajority 0 0 1 1 . . . . 0 0 5 5 % % % % ** Where Q1'19datawas notavailableas of April 26, 2019,Q4'18compared toQ3'18 cost oftotaldeposits wasreported. availableQ1'19 andQ4'18costoftotaldeposits asreportedbyS&P GlobalMarketIntelligence. * “Peers”refers topeergroupasreportedinour proxy statementandaresubject to changeonanannualbasis.Peer dataisbasedonthemostrecently Corporate andFinancial Results Overview Corporate andFinancial Results Overview 0 0 0 . . . 0 1 2 4 3 SIVB 9 0 0 0 . . . 0 3 2 4 8 CBSH 6 0 0 0 . . . 0 3 3 9 1 CMA 8 0 0 0 . . . 0 3 3 9 2 MTB** 7 0 0 0 . . . 0 4 3 S 8 4 CFR 2 V 57.1% B 0 0 0 . . . 0 4 C 3 5 2 ZION 7 o Q s 4 t 0 0 ' 0 1 . o . . 8 4 3 1 f 4 2 RF 6 T o 0 0 0 t . . . a 0 4 5 6 1 5 BOKF** l D e 0 0 0 . . p . 5 0 5 o 0 5 WBS 5 s i t 0 0 0 Q s . . . 1 0 5 5 ' v 6 1 5 1 FRC 9 s . I 0 0 0 n P . c . . 6 4 1 e r e 5 0 NTRS** 5 e a s r e s 0 0 0 * . . . 0 6 5 6 7 UMPQ 9 0 0 0 . . . 0 6 7 0 4 HBAN 6 0 1 0 . . . 0 8 1 3 2 ASB** 9 0 0 1 . . . 0 1 9 4 5 EWBC 1 0 0 1 . . . 1 9 1 4 5 SBNY 9 1 of4 0 1 1 . . . 3 5 1 8 3 NYCB** 5 21 SVB 2014 4:3
Billions Focus Area: Leveraging client liquidity • • • • $ $ $ 1 $ 1 Q1 2019 Q1 2019 0 0 5 5 Billions products demand for ourinterest-bearing Full year average depositcosts expected tobeapproximately 30bps, initiatives, representing depositcosts increased50bpsinQ1'19,Interest-bearing by depositgrowth driven on-balance sheetdepositgrowth Strategic depositinitiatives driving Market higherdepositcosts demandsandcompetition driving $ $ $ T S M I 1 $ 1 $ $ 1 n o w 0 5 5 o $ Corporate andFinancial Results Overview Corporate andFinancial Results Overview 2 2 7 t t e . 0 0 0 0 n a 5 5 5 e b e l p y e a 0 A a v Q Q d m $ $ $ $ . r e v $ $ 1 1 e 5 1 T A A A $ 1 1 7 i a e r 6 3 ' 0 n o v v v p ' 1 . . . 8 a 1 r r 1 t e e e 2 8 5 1 4 g o a 0 % k g 8 a r r r 8 l a a a s e g e c a g g g i t v e h e e e t d e Q s d e o n i $ r T e n $ f o a $ c e 2 t i $ f 1 o p g n 4 e - n 7 k p b ' e 1 8 i t r o 1 n 0 1 i a e a o 9 c f t n s l s 8 l e o l a s t i i g r e n - r t C i e b n c / t s e s e e l t Q s s t $ i a i $ - f $ s a e g r b u 3 i $ 1 h i 8 v 4 n n e n n n e ' 2 8 0 a Q d 1 i g 0 e t $17 million 1 $ $ r 9 n $ f s o . t 8 i d 2 o F 1 n 5 7 1 g c f e ' g l r u 2 f . p . . s i 1 4 e e i 1 7 o d n % Q 8 c n $ i s e $ $ d e t g i 4 p 1 $ t 4 f 8 s o s s n u 3 9 ' s 1 0 5 n 4 i o t d 8 s s f f i Q c $ $ $ $ inadditionalinterestexpense e 1 1 3 8 1 s ' 3 P 1 8 1 7 7 9 e r 0 i Q o $ $ $ . 3 d 1 5 1 7 ' 2 . . . 1 E 0 5 8 % C T M 8 n i o d o m s i I n 0 0 0 0 0 1 n t e 1 n e . . . g . . o . . t 0 0 4 8 d 6 y 2 2 e f e % % % % % % % r m i p e n a s o t r e t s - k 0 0 r i B Q t e e . . s e t 2 1 s 1 0 a Q t ' 0 4 d $ 1 $ - $ r . 4 e b % % 8 6 1 1 i 7 n p e ' 2 . . . 1 8 0 0 g o a % 8 S C I r s 0 0 D o p Q n i i s r n . t . e e v t 2 1 3 s g a o p e ' 7 1 d f 1 s o d % % i o 8 n t s n e m t i e p c t r l e e o i 0 0 C e subject tomarket Q s n s n t o . . t - 3 i t 3 1 b s t i ' F 8 8 e n s t 1 a u v 0 % % 8 a r Q e n i $ $ $ . s n n 2 1 t d 1 6 8 g m d ' 0 . s 0 1 . . d 0 e 0 Q 2 3 S e % 9 n . . p 4 t 4 p 1 o f 2 of4 9 ' r 8 s e 1 i e e t % % 8 s s a d 0 o 0 Q n . . 9 1 2 C ' 8 1 1 l % % 9 i e n t 22 SVB 2014 4:3
Billions Focus Area: Leveraging client liquidity $ $ We arerefiningoursolutions $ 1 Liquidity strategyfor 2019 $ 1 Q1 2019 Q1 2019 0 0 5 5 ◦ ◦ T S M I n o demand with anticipated returns on short- andmedium-terminvestments.demand withanticipated returnsonshort- w o Corporate andFinancial Results Overview Corporate andFinancial Results Overview t Billions Anticipated investment purchasesof$1.0B-$1.5Bperquarter portfolio reinvestment cash flows ofportfolio andnewinvestments capturehigherinvestmentthrough Fund loangrowth, yields portfolio t * During Q4'18* During and Q1'19 andrepayshort-term were usedtofundloangrowth borrowings. ofportfoliocashflows themajority e . n a e b e l ▪ p y e a 0 a v Q $ d m $ $ $ . r e 1 1 1 rates as of April 25,2019) rates asofApril ofapproximately yields roll-off portfolio 2.10%-2.20% (assuming purchasesestimatedat2.70%Yields -2.80%,with onsecurity e 5 1 7 i a r . ' 0 n p 4 . . . a 1 r Q 2 5 1 g o % k g 8 1 s e e c ' i t 1 h t d 8 s d e $ e c e i 2 p n k p . o 4 i o f n s o s i g r t i R 0 / 4 t s e 5 2 3 1 s e s I i % % % % % % a i g n i n v n n v 0 v Q i e $ $ $ n $ f o e . 2 o s 1 1 0 5 7 1 g f s Q 1 3 t ' r . 2 f . . . . s t 1 m 3 4 e . i Q 1 . 7 2 1 m % 6 8 c 5 i ' 0 e 2 e g 1 % % e n ' % s 8 over time n n 1 t P 8 t o $ P o Y f 2 r o 0 C W W f Q t 3 i 1 . f i o r e o e e 2 . c . 2 . s t 3 i i l 6 l 7 t e g g i f ' d o 1 o 1 o h h % % s s % f t t c P 8 l e e D a i i n e a d d s o e t h r n a a e - p 0 i C v v 0 to balance client liquidity needsandmarket tobalance clientliquidity r Q f d Q o e l g g 1 3 $ $ o $ $ a o . . s . . 3 d . 1 3 5 C 1 . w s 3 1 7 t s y y 9 5 - ' 2 i . ' s . o . . i i h 8 b 1 E e e 0 1 t 5 8 % 3 % e Q % C T M s - 8 s l l n % 8 a d d F t i o 3 r d o m o o l i o s ' n o i f f n 1 n t g f e Q 0 c p w e 8 a $ 1 u g d o I 4 . s d y r e 0 . n 4 f h a c 8 p ' e h t m P 1 . n i f 8 o a p % e 8 l n o s 8 o d s % a r i r o w t e t t * e r e s s f P s s o k s r i u l t e i 0 e t Q o s r 2 t s B . 1 c p 0 Q . 9 t d h u ' e $ 3 $ - $ 1 . $ r 8 4 e b a a 6 1 % 1 c 7 9 1 h % p s e ' r 2 . . . 1 . a * 8 0 i e 0 o a % 3 s Q n 8 e r s A g 4 s i i n c t ' s 1 t g i 8 $ v d 0 i e t . y p 0 o s i t s 0 Q $ $ $ . $ 2 1 1 6 8 0 ' 0 . 1 . . 0 2 . 3 % 9 5 Q 1 3 of4 ' 1 9 $ 0 . 2 23 0 0 0 0 0 0 . . . . . . 0 0 2 1 2 1 0 0 0 5 5 5 % % % % % % 0 Q . 1 S 1 ' 4 p 1 % r 8 e a d o 0 Q n . 2 SVB 2014 4:3 1 C ' 7 1 l % 8 i e n t I 0 Q n . v 3 1 e ' 8 1 s % 8 t m e n 0 Q t . 4 F 1 e 9 ' 1 e % 8 s 0 Q . 1 2 ' 1 1 % 9
Focus Area: Leveraging client liquidity Sources offunds existing client needs newand in development tosupport Additional newon-balance sheetproducts New products balance sheetinQ1'19 deposited $1.0Bofnewfundsonthe commercialMore than1,000 clients New clients Q1 2019 Q1 2019 S V B A s Corporate andFinancial Results Overview Corporate andFinancial Results Overview s e t M a n a g S e w R m e e e p e n p o t $ 0 O f f - B a $ $ l 8 1 a . 0 n 1 c e S h e e t C l i e n $ t 2 0 F u n d products over thelong-term new funds areaddressablewith Approximately 10 to balance sheet of off-balancesheetclient funds portion tograduallyOpportunities move a Mix shift s B i a l l t i o 3 n / s 3 1 / 1 $ 9 3 0 % -20 $ 4 $ 0 % 3 $ 9 4 of Repo/Sweep . 4 0 . 7 4 of $ 5 0 24 SVB 2014 4:3
Focus Area: Reducing asset sensitivity Billions What we're doing $ $ • • • • $ 1 $ 1 Q1 2019 Q1 2019 0 0 5 5 Adding "Receive Fixed" loanstofixed interestrateswapstoconvert variable-rate income whenratesfall topreserve Implementing loanratefloors Managing cashbalances lower thanQ1'19 levels Gradually extending portfolio durationinourinvestment securities T S M I n o % Change from Base w o Corporate andFinancial Results Overview Corporate andFinancial Results Overview t t - - - - - - e . n a 1 1 1 1 1 1 e b e l 4 6 5 2 3 Years 7 p y e a % % % % % % 0 4 3 3 3 3 3 a v 3 Q 3 d m $ $ $ . . . . . . r e . . . 1 1 0 4 e 6 9 8 5 5 3 7 1 7 i a r ' 0 n p . . . a 1 r 2 5 1 g 12-18 month rate sensitivity target: -100bpsshock 12-18 monthratesensitivity <10%with o % k g 8 s e e c 1 Q i t -15.7% h 2 t d 1 s d e / e ' 3 1 c e i 3 p n k 8 1 p . o i / 4 P o f n s 1 o s o 3 i g 7 r t i Q r . / t s e 7 t s s 2 f i a o g ' i 1 v n l n 0 8 i Q i - o $ $ n $ f o . 1 2 o 1 5 7 1 g f 0 D 3 ' r 2 f . . . s 1 Q 4 e / u i 0 1 7 % 8 c 3 -14.0% 3 i 3 r e g 1 b a . ' 9 s n 1 / t p 1 i 8 s o o 8 n f I f n i Q c t e 3 4 e r . s ' 8 e P 1 s 8 e -13.7% 6 t r 0 i / R Q o $ $ 3 $ Q . a 3 d 1 5 1 0 7 t 1 ' 2 . . . e 1 / E 0 5 ' 8 % 1 C T M 1 8 n 3 S 8 9 i o d o . m h 7 s i n o n t e e c g o k d y f e ( m i p N n a 9 o t I -12.9% r e / I s k 3 r i S t e e 0 s e t s / 0 n Q t d 1 $ $ - $ . s 4 8 e b 6 1 1 7 i p e ' t 2 . . . 1 i 8 0 0 o a % v 8 r s i NII sensitivity increasedinQ1'19NII sensitivity due i i t n t to higher period-end cash balances to higherperiod-end y s g -13.3% ) from timingofdepositinflows 1 d 2 e / p 3 o 1 / s 1 i t 8 s 0 Q $ $ $ . 2 1 1 6 8 ' 0 . 1 . . 0 2 3 % 9 3 1 of / -14.4% 3 1 / 1 9 25 SVB 2014 4:3
Long-term financial objectives 3) 2) 1) environment EPS Core ROE growth smart Strong, sustainable, >10 <10 Asset Sensitivity Non-GAAP measure Normalized rate environment representsFedFunds rateabove2.5%,lowenvironment representsFedFundsat orbelow2.5% Excludes impact ofSVBLeerinkrevenueandexpense Q1 2019 Q1 2019 % % 3 environment inup100bpsscenario ~20 ~10 ~20 ~15 in down 100bpsscenario Corporate andFinancial Results Overview Corporate andFinancial Results Overview environment % % % % in growth ina growth growth ina growth in a low rate normalized rate environment rising rate rising flat rate Loan-to-Deposit ratio<70 Bank Tier 1Leverage ratio~7-8 Strong Capital&Liquidity Low Rates Normalized Rates leverage operating Investments ingrowth&improved Mid-50 Mid-40 % % Core Efficiency Ratio Core Efficiency Core Efficiency Ratio Core Efficiency 1,2 % 3 % 26 SVB 2014 4:3
Q1 2019 Corporate andFinancial Results Overview (Balance Sheet)(Balance Financial Performance 27 SVB 2014 4:3
At A high quality balance sheet $1.6 Other 3/31/2019 N Q1 2019 Q1 2019 , 2% e 2) 1) t l o Non-marketable securities netofnon-controllinginterests were Net loansrepresents grossloansnetoftheallowance forloanlossesandunearned interestincome.Grossloansat 4 Period-end assets: a Corporate andFinancial Results Overview Corporate andFinancial Results Overview 8 n % s $ 2 8 . 6 C 1 a s h securities maturity Held-to- $ F $7.8B 18% 7 i ( s LIHTC Investments) x A . 1 e e securities F Non-marketable c d 1 1 S u 2 1 ) i r F n % % $60.2B ( i $1.0 $ i t H c s x 6 i o e e T e . m c s M 8 d 2 u , 2% e 5 ) i r n 2 % i $ t (VC & c 1 i o e 5 m s . 1 e $841 million . This isanon-GAAP measure. 2 I d b n e $ e Period-end liabilities: 2 t p 1 e a Borrowings 4 3 o r r $0.7 % e i . s n 0 i s t g t s - , 1% 3/31/2019 O $ 3 t 1 h b % . e e 7 N a r o were r n i n $ - 7 i g 3 $29.0B n 2 9 d t % e . e 3 r p e o $54.7B s s t i - t s 28 SVB 2014 4:3
Robust balance sheet growth Billions Strong growth inloansandsecurities Strong growth $ $ $ $ $ $ $ Q1 2019 Q1 2019 4 6 5 2 3 $ 7 1 0 0 0 0 0 0 0 0 Corporate andFinancial Results Overview Corporate andFinancial Results Overview $ 2 4 0 4 1 . 5 7 Other assets Net loans VCNon-marketable (primarily &LIHTC securities investments) securities Held-to-maturity Available-for-sale securities Cash andcashequivalents Period-End Assets $ 2 4 0 4 1 . 6 7 $ 2 5 0 1 1 . 7 2 $ 2 5 0 6 1 . 8 9 3 $ / 3 6 1 0 / . 1 2 9 Billions $ $ $ $ $ $ Non-interest-bearing deposits Non-interest-bearing 4 6 5 2 3 $ 1 0 0 0 0 0 0 0 75% $ 2 4 0 1 1 . 5 4 Period-End Liabilities oftotaldeposits Non-interest-bearing deposits Non-interest-bearing Other liabilities Interest-bearing deposits Interest-bearing Borrowings $ 2 4 0 0 1 . 6 9 $ 2 4 0 6 1 . 7 9 $ 2 5 0 1 1 . As of 8 7 3 $ 3/31/2019 / 3 5 1 4 / . 1 7 9 29 SVB 2014 4:3
A history ofrobust client liquidity • • • Q1 2019 Q1 2019 Billions higherdepositcosts, thoughstillmuchlower thanpeers driving Successful new productsare on-balance with initiativessheetdepositgrowth todrive investment products(due tolimited on-balance sheetoptions) Recently, highermarket rates have ledourclients toseekreturnsinouroff-balancesheet inclientgrowth depositsandoff-balancesheetclient fundsover time Liquidity fromventure capital/privatestrong funding andexit equity hasdriven activity $ $ $ $ $ 1 $ $ 1 1 $ 1 Corporate andFinancial Results Overview Corporate andFinancial Results Overview 0 4 4 6 6 8 2 2 $ 0 0 0 0 0 0 0 0 0 $ $ $ 2 $ 3 2 5 0 7 0 0 8 A A A A 1 . 9 . . . v v v v 5 0 4 4 e e e e r r r r a a a a g g g g e e e $ $ $ 2 e $ o n i 3 7 2 n 0 8 f o T 9 5 t f 7 n 1 e - . o . . b . 5 i 6 r 8 5 t 2 n a e a t l s e l a t r n - C e b c l s e $ e $ $ i 2 t $ a e 4 - 8 3 s 0 r b 7 n h i 3 1 2 e . 1 n e t 6 . . . a g 7 e 2 4 1 F r t i d u n c e n g l p i d e o d $ $ $ n 2 s s e $ 9 t 3 5 i 0 p t 7 f 4 5 1 o s 1 u . s 5 . . . n 8 5 2 i 3 t d s s $ Q $ $ $ 1 8 3 1 1 3 8 1 7 ' 1 7 . . . 4 5 . 9 2 1 0 0 0 0 0 1 . . . . . . 0 0 4 8 6 2 % % % % % % 0 0 2 . . 0 0 0 6 6 1 5 % % S C o p 0 0 s r 2 e t . . 0 0 0 a o d f 1 7 7 Y i 6 o % % n i n e t e l c d r l e i / 0 0 e s 2 R n t . . 0 - 1 t a 1 b 2 i t 1 1 e n e % % 7 a v r e i s n t g m 0 d 2 e . e 0 n 1 p t 7 1 o f % 0 8 s e i e . t 3 s s 5 0 0 % Q . . 9 1 2 ' 8 1 1 % % 9 30 SVB 2014 4:3
E T e a E c r l 2. 1. h a & Healthcare y Life Science Early-Stage at 3/31/19 Total Client Funds Contributions by Niche r n - l S o y 2 and life-stages,with InternationalPE/VCrepresenting 8%oftotaldepositsand1% ofoff-balance sheetclientinvestmentfunds. International balances isamanagementviewofclient nichesanddoesnottietoregulatory definitionsforforeignexposure. Internationalbalancesinclude clientsacrossallclientniches Deposit andoff-balance sheetclientinvestmentfundsbalancesbyportfoliois amanagementviewofclientniches. t l - o a S 9 g g t % Q1 2019 Q1 2019 a S e y g c e i e 1 L 0 n i Corporate andFinancial Results Overview Corporate andFinancial Results Overview c % f e e D e p o s i t 1 T s 0 e * c 1 % h n 2 U o 2 l 1 H L . o S % % i e f g . e a y P l S t E h c / c i V e a C n r e c 2 I 3 P n e 3 % r t % & i e v r a n 2 O t a % t e t h i B e o a r n n a k l 2 E a & Healthcare Life Science r Early-Stage E T l y e a - c r S l h t y a n S - g S o c 2 e t i l e o a 0 2 L O n g g % 1 i c e y f % f f e e - B a l a U n c . S e . S P h E 1 e / 1 e V % t C C l i e n t I n v e s t m 1 P 3 I e % r n % n i t v t e a F r t n u e 3 T a n e B 0 t d c i a 1 H L % s o h n 4 i * e n f n 1 k % e a a o l l S l t o h 2 c g c i e y a n r 31 e c e & SVB 2014 4:3
Billions investmentQ1'19: Ahigh-quality portfolio $ • • • $ $ 2 $ 1 $ 1 Q1 2019 Q1 2019 0 0 0 5 5 Agency-issued rate collateralized residentialmortgage-backed –variable securities Agency-issued collateralized residentialmortgage-backed –fixed securities rate U.S. agencydebentures U.S. Treasury securities Available lines ofcreditinplaceliquidity toprovideshort-term U.S. Treasuries make up Liquid, fixed-income primarily adurationof with portfolio $ 2 Corporate andFinancial Results Overview Corporate andFinancial Results Overview 1 0 6 A 1 . v 5 4 a i l a b $ 2 l (Period-End) 1 e 0 2 - 1 f . 6 o 6 r - S a l $ 2 e 1 0 S 1 1 e . 7 1 c u r i t i 2 $ e 0 7 s 1 . 8 8 3 17% / $ 3 6 1 . / 8 1 9 ofinvestment portfolio Billions $ $ $ 2 $ 1 $ 1 0 0 0 5 5 Municipal bondsandnotes Agency-issued residentialmortgage-backed securities Agency-issued commercial mortgage-backed securities 2 $ 0 8 1 . 8 H 5 e l d - t 2 o $ (Period-End) 0 - 8 M 1 . 4 6 a t u r i t y $ 2 1 0 S 2 e 1 . 7 c 7 u r i 3.7 years t i e $ 2 s 1 0 5 1 . 8 5 As of 3 3/31/2019 $ / 3 1 1 5 / . 1 1 9 32 SVB 2014 4:3
Q1'19 Q1 2019 Q1 2019 Growth driven primarily by Private Equity, by Private primarily driven Growth Life Science & Corporate andFinancial Results Overview Corporate andFinancial Results Overview Billions $ $ $ $ : average loansgrew 2 3 2 1 0 0 5 5 $ Q $ 2 2 1 4 3 ' Healthcare and Private Bank Healthcare andPrivate 1 . . 8 8 6 A v e r a g $ Q $ e 2 2 2 l 6 4 o ' 1 . . a 0 9 8 n s Q $ $ 2 2 3 6 7 ' 1 P . . 5 8 3 e 3.3% r i o d - e n Q $ $ d 2 4 2 l 8 7 ' o 1 . . a 5 3 8 n s $ $ Q 2 2 1 8 8 ' 1 . . 9 4 9 33 SVB 2014 4:3
Premium Wine P Q1'19: Adiversified loanportfolio $1.0 r 3% i v a t e Q1 2019 Q1 2019 B 1 $ a 1 Gross Loans: 3 n V % P . k Corporate andFinancial Results Overview Corporate andFinancial Results Overview 1 e r i n v t a u $ 4 t r 1 e e 9 4 E % C . q 3 a u p i i t t Other y $0.4 a 2% / l 3 $29.0 S billion I o n f 2 $ t t e 6 2 w r % . a n 3 r e e t / Life Science/ 1,2 Healthcare $2.6 $1.3, Hardware , 9% 4% Technology andLife Science/Healthcare Only 3) 2) 1) Primarily capitalcalllinesofcredit Primarily loans) inourearnings releasesandourForm 10-Kand10-Q reports. Bankincludes loansdesignatedasConsumerPrivate Loans (includingreal estatesecured As of 3/31/2019 $10.2 billion ( ; grossloansdonot includedeferred fees andcosts. Sponsored Buyout Non-Early Stage Balance Sheet Early Stage $2.5 $1.6 $2.1 $1.5 $2.5 Other ( ( ( ( ( 9% 7% 6% 5% 35% 8% ) ) ) ) ) ofGrossLoans) is asset-based lending Investor-dependent 2 Investor-dependent 1 Cash flowdependent2 Cash flowdependent1 covered by current Cash flowandhybrid Revenue: $0-$5M Revenue >$5M Balance-sheet assets; dependent $1.0B 34 1 SVB 2014 4:3
Our loan portfolio has evolved over time • Private Equity has driven the majority of recent growth, although we have seen growth in all niches • Our Private Equity portfolio has historically been characterized by lower yields. relative to the rest of our portfolio, and exceptional credit quality Loans, net of unearned income $28.9 $30 $28.3 12% o i 11% l o $1.3 f 10% $1.2 t r $25 $23.1 $2.4 $2.5 10% o 9% 9% p $3.1 n 8% 8% $19.9 $1.2 $3.0 a o $20 $1.8 8% l f o s $1.2 $16.7 $2.6 $6.2 $6.2 n $1.9 % o i $14.4 s l $15 $1.1 6% l $2.2 a i $1.7 $6.2 6% 6% s B $1.1 $10.9 $1.3 $1.8 n a $8.9 $1.3 $5.6 o $10 4% l $7.0 $5.4 e $5.0 $14.1 $14.3 g $5.5 a $4.5 t $10.0 s $5 $4.1 2% - $7.7 y $3.3 l $2.5 $4.6 $5.5 r $1.4 $1.8 $2.4 a $1.7 E $0 $0.9 $1.0 $1.1 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3/31/19 Private equity/venture capital Hardware Software/internet Premium wine Private Bank Other Life science/healthcare Early-stage loans as % of loan portfolio Q1 2019 Corporate Overview and Financial Results 35
Loans >$20M are primarily Private Equity capital call lines, which have a history of exceptional credit quality Capital call lines have maturities of <1 year and are secured by contractual capital commitments and the invested assets of the fund borrowers. Gross loans to any single client equal to or greater than $20 million $14.5 $$14.814.9 $15 $14.6 $10.5 $2.3 $2.2 $10 $8.9 s n o i $2.2 l $6.8 l i $6.2 B $1.9 $4.2 $10.1 $10.4 $5 $4.3 $1.9 $3.1$3.2 $1.9 $6.8 $$2.22.1 $1.6 $5.3 $1.0 $1.3 $1.1 $3.1 $3.6 $1.0 $1.5 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3/31/19 Private equity/venture capital Private Bank Software/internet Premium wine Life science/healthcare Other Hardware Q1 2019 Corporate Overview and Financial Results 36
Private Equity capital call lines: High growth, diversification, low credit risk • High-quality, strong underwriting • Strong secondary markets PE/VC Fund Commitments by Investment Style and Industry* Investment Style Industry PE - Real Estate Other PE - Other Energy 5% PE - Fund of Funds Infrastructure Technology 7% Natural Resources 10% PE - Debt 24% FinTech 9% 2% 24% Life Sciences 5% Real Estate 5% 12% VC Funds 7% Industrial 24% 27% 16% 9% Fund of Funds PE - Growth Debt PE - Buyout 10% Consumer * PE/VC portfolio by investment style and industry is based on fund commitments as of 9/30/18 Q1 2019 Corporate Overview and Financial Results 37
Q1'19 • • Q1 2019 Q1 2019 Millions Millions Allowance for loanlosses/totalgrossloans:at Provision for creditlossesof $ $ $ $ $ 1 2 $ 1 $ 1 $ 1 Corporate andFinancial Results Overview Corporate andFinancial Results Overview 0 0 0 0 5 5 $ 5 5 0 0 0 0 : Credit quality remained stable 0 $ $ Q 0 8 . 1 Q 1 1 . 1 . ' 1 5 4 8 N 1 6 ' % 7 M 8 1 o . 7 % 8 n M - p e r f o r m i n g l N N o $ 0 $ Q a e e 0 1 1 Q . n t t 2 3 2 . 2 s 2 4 ' c c . 2 5 1 / 5 ' h h 8 % 1 t . 8 M a a 3 o % 8 r r M t g g a e e l - - g o o r f f o f f s s s s / $28.6M a l v o e a r n a s $ g $ 0 Q 0 2 e 1 Q . 0 3 3 . 1 t 3 4 ' o 0 5 . 1 ' 0 2 t 1 . % 8 a 3 % M 8 l M (vs. g r o T o s s t a l l o n a 13.6M o n n s - ( p a e $ 0 $ n Q 0 Q r 1 9 n . f . 4 3 2 4 3 o u 6 . 0 ' 1.03% ' 4 r a 1 9 . 1 m 1 % l 8 % M 8 i M in z i n e g d ) l o Q4 a n s (vs. ) $ 0 0 $ 1 Q Q 3 7 . . 1 1 4 1 . 5 0.99% ' 6 ' 1 7 1 1 . % M 8 9 % 9 M 0 0 0 0 0 0 1 in . . . . . . . 0 0 1 2 3 0 5 % % % % % % % Q4 ) 38 SVB 2014 4:3
Five non-dot-com loansdrove Statistics Portfolio through market cycles History ofhigh credit quality andresilience Loan (2000: Dot-com bust) 1 3 2 . . increase inNCOs 0 0 Q1 2019 Q1 2019 3 0 2 7 % % 0 Corporate andFinancial Results Overview Corporate andFinancial Results Overview 2 0 48% Technology 30% Early-Stage 0 % oftotalloans 2 2000 2 0 0 4 Five problemloansdrove short- (2008-2009: Financial Crisis) (2008-2009: Financial Crisis) lived spike inNPLs andNCOs 2 Net charge-offs asa%ofaverage totalgross loans loansas a %oftotalgrossloans Non-performing 0 0 6 1 2 . 0 5 7 0 % 8 2 . 6 47% Technology 14% Early-Stage 4 % oftotalloans % 2 0 2007 1 0 2016), onenewCorporate Finance loanaddedin NPLs duetofour elevatedsince Q2'15primarily Sponsored Buyout loans(twowere resolved in 2016 practice andtwoGrowth loans addedin 2 0 1 2 2 0 1 4 2017 2 26% Technology 0 6% Early-Stage % oftotalloans 1 6 2018 2 0 1 8 0 0 . . 4 1 1 7 % % - 0 1 2 3 4 1 % % % % % % 39 Non-performing loans Non-performing Post-crisis NCOs remainbelow50bps SVB 2014 4:3
Billions Expanding international business activity $ $ $ $ $ 1 $ $ 1 Q1 2019Q1 2019 Corporate andFinancial Results Overview $ 1 0 0 4 4 6 8 2 2 A v $ e international international 2 1 Corporate andFinancial Results Overview r . 0 a 1 $ g 1 L 6 e 5 o deposits* . a 5 I n $ n s 2 1 t loans* e . 0 5 $ r 1 n 6 6 * a . 6 t i $ o 1 this is a management segment view and does not tie to regulatory definitionsfor foreignthis isamanagement exposure anddoesnot tietoregulatory segmentview Includes full-year andQ1'19 average Israel loananddepositbalances for andAsia; internationaloperations inU.K., 2 n . 0 a 9 $ 1 l 7 7 B . 7 D a $ l e a 2 2 p n . 0 $ o 8 c 1 1 s e 0 8 i s t . s * 4 $ Q 3 . 1 $ 7 ' 1 1 1 9 . 1 Hong Kong Germany Location Canada Israel China U.K. Beijing, Shanghai,Shenzhen) Business development office Business development and (joint venture,in (joint offices SPD Silicon Valley Bank Representative office representative office Full service branch Full service Branch (lending) Branch (lending) Description (Beijing) opened 2008 2005 2018 2019 2012 2012 2013 Year 40 SVB20144:3
Q1 2019 (Income Statement) Financial Performance Corporate andFinancial Results Overview 41 SVB 2014 4:3
Q1'19 The first quarter alsohadtwolessdaysThe firstquarter compared toQ4'18. Higher average wereby loansandyields offset higherdepositcost. Q1 2019 Q1 2019 Millions * $ $ $ $ $ $ 4 6 5 2 3 1 based on the federal statutory tax rate (35 percent for periods prior to 2018and21percent after 12/31/17)based onthefederal taxrate(35percent prior statutory for periods Net interest income ispresentedon afully taxableequivalent basistoconsistently andtax-exempt income reflect from taxableloansandsecurities securities 0 0 0 0 0 0 Corporate andFinancial Results Overview Corporate andFinancial Results Overview $ 0 0 0 0 0 0 0 Q N e 1 : Net interest income decreased ' t 0 i 9 n t e r Q e s 1 t ' 1 i 0 n c o m Q e 1 * ' 1 1 Q 1 ' 1 2 N e Q t 1 i ' n 1 t 3 e r e s Q t 1 m ' 1 a 4 r g i n Q 1 ' 1 5 Q 1 ' 1 6 F e d e Q r 1 a ' l 1 F 7 u n d 0.3% Q s 1 t ' a 1 r 8 g e t Q r a 1 t ' e 1 0 3 6 2 3 $ 9 % 5 . . % % 8 5 1 0 1 5 % % . 8 42 SVB 2014 4:3
Higher rates have driven higher NIM Interest Rates/Yields Q1 2019 Q1 2019 1 0 0 5 % % % * Consolidated loanyields havebeenimpactedbythechange inthemixofourloanportfolio toPE/VC toTechnology loans,whichhavelowerloanyields incomparison andLife Science lending. Q Corporate andFinancial Results Overview Corporate andFinancial Results Overview 1 ' 0 9 F N e Q e d t 1 e i ' n r 1 a t 0 l e r F e u s n t d m s Q a t a 1 r g r ' g 1 i n e 1 t r a t e Q 1 ' 1 2 Q 1 ' 1 L 1 o 3 M a o n n y t i h e Q l L d I 1 B ' O 1 4 R Q 1 ' 1 5 2 . 5 0 % Q 1 ' 1 6 4 3 P . r M 4 i v Q o 8 a n 1 t % t e ' h 1 E L 7 q I u B i O t y R / V Q e 1 n ' t 1 u 8 r e C a p 4 2 5 3 i Q 9 t . . . a 5 6 1 . 8 l 3 ' 0 3 1 1 0 % % % 9 0 2 5 % * 5 0 % % % PE/VC % of Loan Portfolio 43 SVB 2014 4:3
We maintain the benefits of asset sensitivity, with strategies to mitigate the downside Estimated net interest income could change as follows if short-term rates move +25 bps could increase net interest income by $73 million -25 bps could decrease net interest income by $73 million % Change in Base Case Drivers Changes in Net Interest Income 1) Impact of interest rate changes on: market as of interest rates • Reinvestment of fixed income (basis points) 12/31/18 3/31/19 portfolio cash flows • Variable rate loans and LIBOR- +100 13.1% 14.3% based investments -100 (13.3)% (14.4)% Primary benchmark indices: 2) Balance sheet growth and asset/ • Federal Funds target rate liability composition: • National Prime rate • Large non-interest bearing deposit funding base • 1-month LIBOR • Loan portfolio primarily variable • 3-month LIBOR rate * For more information, please refer to our sensitivity analysis included in our most recently filed quarterly reports pursuant to applicable SEC requirements. These estimates are reported on a pre-tax basis and are based on a static balance sheet and assumptions as of March 31, 2019. Actual results may differ. Simulations used to analyze interest-rate sensitivity may differ from actual results due to, among other things, differences in timing, frequency, and magnitude of changes in market rates; impact of competition; fluctuating business conditions and impact of strategies taken by management to mitigate these risks. Q1 2019 Corporate Overview and Financial Results 44
Investment securities andwarrant gains Q1 2019 Q1 2019 Millions 3. 2. 1. $ $ $ $ $ 1 $ $ 1 1 $ 1 0 4 4 company that went public in the prior quarter.company thatwentpublicintheprior Despite thelossinQ1'18, totalnet gainsfromthisinvestmentwereapproximately $46million. In Q1'18, netofnon-controlling interestsincluded$22.2 millionoflossesfromthesaleshares fromexercised losses oninvestmentsecurities equitywarrantsinasingle This isanon-GAAP measure. onourabilityto selltheunderlyingand contractual securities. restrictions performance oftheunderlying portfoliocompanies, investordemandfor intheunderlying IPOs,fluctuations valuation ofthesecompanies, levelsofM&A activity, andlegal warrant assetsarecurrently unrealized.Theextent towhichsuchgains(or losses)willbecome offactorsincluding, realizedaresubjecttoavariety amongotherthings, The gains(or losses) resultingfromchanges invaluations portfolioandequity withinournonmarketable (fairvalues) andotherequitysecurities ofinvestmentsecurities 6 6 8 2 2 $ Corporate andFinancial Results Overview Corporate andFinancial Results Overview 0 0 0 0 0 0 0 0 0 n N N e o e t t n o - g $ G $ 2 f a 7 5 A 0 n i 1 n 7 A o 1 . s . n 5 0 P 3 o - n c n o e e n t $ $ 2 q t 4 g 3 0 r u a 3 7 o 1 i i . . l t 6 9 n 4 l y i s n w o g a n $ $ i 2 r n 5 3 i r 0 n t a 4 5 e 1 v n . . r 7 4 e 6 t e s a s t s t m s s $ $ 2 2 e e 4 8 0 t n 9 s 9 1 t . . 8 s 9 1 e c u $ Q r $ i 2 2 1 t 5 i 1 ' 1 e . . 9 6 3 s Millions $ $ $ $ $ - 4 5 2 3 $ $ 1 5 5 5 5 5 5 5 s N N e o e c t n u $ Q $ - g r ( G 1 1 a i 3 9 t A ' i . 1 i n 8 . A e 8 2 s s ) P 3 o n n n e $ Q e $ t e 2 t 1 2 q o 6 9 g ' u f 1 a . . 4 8 1 i n i t n o y s n w - Q ( $ $ c l a 2 3 3 o o r 5 4 ' s n r 1 . s a . t 2 6 8 1 e r n o s t ) l a l Q o i $ s $ n n 1 4 s 1 g 6 e ' i . 1 t n 8 i . 1 n s 7 8 v t e e s r t $ Q $ e m 2 s 2 1 t 5 e 1 ' s 1 n . . 9 6 3 t 45 SVB 2014 4:3
early-stage over time charge-offs Net warrant gains have more thanoffset Q1 2019 Millions - $ $ $ $ $ - 2 1 1 2 $ $ 1 0 0 0 5 5 5 5 $ Corporate andFinancial Results Overview 0 0 0 0 0 0 0 0 $ 2 ( 3 0 $ ) 0 ( 1 2 3 $ 2 ) 8 0 $ 0 ( 3 1 ) $ 2 3 0 Aggregate warrantgainsnetofearly-stage losses 0 $ 4 0 $ 2 3 0 $ 0 ( 5 2 $ C E N ) 2 2 a u e 0 r 2 m t $ l 0 y g ( u 6 7 - a l s $ ) a i 2 t 2 n t a 0 $ i 3 s g v 0 ( o e e 1 7 n 0 n n $ 2 ) e e 1 e 0 $ q 1 t t (2002 -Q1'19) 0 ( u c g 1 8 h i a 6 t a i y 2 ) n r 0 g w $ s 0 e ( ( a 5 - w 9 r o 8 r a $ f a 2 ) f r 7 n 0 s $ r t a 1 ( 2 n 0 a 3 t s $ s s ) 2 3 e l 0 7 e $ t 1 s s ( 1 1 s $ ) e 2 1 a 0 9 $ r ( 1 l 2 2 y $ 1 - s ) 4 2 t 0 $ 6 a ( 1 g 2 3 e 6 $ N 2 ) 7 0 $ C 1 ( 1 O 3 4 s 0 $ ) 2 ) 7 0 $ 1 1 ( 1 5 2 $ ) 2 3 0 $ 8 ( 1 4 6 5 $ ) 2 5 0 $ 5 ( 1 3 7 5 $ 2 ) 8 0 $ 9 ( 1 2 8 $194M 8 $ Q ) 2 1 1 $ ' 1 ( 9 1 ) 46 SVB 2014 4:3
(excluding investment bankingincome) Q1'19 Growth drivers: Growth Q1 2019 Millions $ $ $ $ • • • 2 1 2 $ 1 0 0 5 5 5 $ Corporate andFinancial Results Overview 0 0 0 0 0 0 Q1'19 includesinvestment bankingrevenue andcommissions fromSVB Leerink Stronger lendingrelatedfees fromunusedcommitment fees andloansyndications Higher client investment fees fromhigherfundbalances andrateincreases Q $ 7 2 I C D F : Corefee income grew n 4 o ' l e 1 i v r . p e 6 5 e e n o i s g t s t i n m i t n $ Q e e s v 8 e x n 3 e c 0 r t ' s 1 v h t . b 6 i m 5 a a c n e n e g n k c e i t h $ Q n f f a 8 g 4 e e r 4 e e ' g r 1 s . s e e 6 6 v s e n u $ Q e 8 1 a 2 ' 1 n . 6 7 d c o m Q $ m 8 2 7 ' i 1 s . 3 7 s i o n $ s Q 1 3 0 ' 2 1 . 7 7 $ Q L L C T 1 e e o r 4 0 e t n t ' 6 a t d 1 d e l . 7 i i 4 r t n c s o c g o a r r e $ f r Q e 5.6% d 1 c f l 1 1 e r a f ' e 5 e e t 1 d e e . 8 i 0 d i s n t / c f S e o t e m $ Q a s 1 n e 2 2 * d ' 3 1 b . 8 1 y L O $ Q C 1 3 3 ' 1 1 . 8 7 $ Q 1 $ $ $ $ $ $ 4 4 2 4 1 3 2 1 ' 6 0 0 1 8 5 1 2 . 8 0 $ Q 2 $ $ $ $ $ $ 1 $ 1 4 6 3 1 2 2 ' 9 8 1 4 8 4 4 7 1 9 . 1 47 SVB 2014 4:3
A history ofstrong core fee income growth fee bankingproducts: Recent coreby feestrongtransactionvolumes incomehasbeendriven acrosscore growth Q1 2019 Millions • • • $ $ $ $ $ $ 4 6 5 2 3 1 0 0 0 0 0 0 $ Investment bankingreveneu andcommissions fromLeerink acquisition spreads Foreign exchange andcreditcardvolume partiallyby growth, offset lower competitive Client investment feefromhigherfundbalances growth andrateincreases Corporate andFinancial Results Overview 0 0 0 0 0 0 0 I C D F n o l e i v r p e e e n o i s g t s t i n m i t n 2 $ e e s v 2 0 e x n e 6 1 c r t s v h 5 5 t b i m a a c n e n e g n k c e i t h n f f a g e e r e e g r s s e e v s e n u e 2 a $ n 0 3 d 1 1 6 6 c o m m i s s i o n s 2 $ 0 3 7 1 9 7 L L C e e r e t n t d d e i i r t n s c g o a r f r e d c l r a f e e t d e e d i s t / f S e 2 $ $ $ $ $ $ $ t e 0 1 5 1 a 9 4 7 3 s 3 3 1 1 n 6 5 4 2 0 9 6 8 d b y L O C Q $ $ $ $ $ 1 2 4 6 3 2 ' 1 1 8 4 4 7 8 9 48 SVB 2014 4:3
Performance and growth driving non-interest expense Revenue and growth investment initiatives: • Client experience • People (staffing, enablement, performance-based incentive compensation) • Infrastructure improvements (banking, risk & compliance) Compensation and Benefits Expense Other Noninterest Expenses 3,228* 2,685 2,396 2,225 $727 2,004 $195 $461 s $606 s n $404 n o i $514 o $121 l $184 i l $346 $474 l i l i $307 $120 M $150 $207 M $48 $ $138 $105 $145 $97 $42 $55 $120 $238 $40 $48 $122 $325 $40 $40 $78 $277 $66 $35 $72 $128 $244 $66 $214 $71 $52 $38 $159 $101 $83 $95 $122 $37 2015 2016 2017 2018 Q1'19 2015 2016 2017 2018 Q1'19 Salaries/wages and other Incentive comp. plans employee comp. Professional svcs. Premises & equip. Other employee Avg. full-time equivalent Net occupancy Business dev. incentives/benefits employees* Other expenses* * Q1'19 includes 233 full-time equivalent employees from SVB Leerink * Includes costs for FDIC and state assessments, correspondent bank fees, lending and other client-related processing, telephone, data processing and other expenses; please see our quarterly filings for more information. Q1 2019 Corporate Overview and Financial Results 49
over time,driven by strong revenue growth Core operating efficiency ratio * Q1 2019 Billions $ $ $ $ $ $ $ Non-GAAP measure 0 2 0 3 1 2 1 . . . . . . . 0 0 0 0 5 5 5 Corporate andFinancial Results Overview $ 1 . 5 2 0 1 5 $ 60.5% 52.7% 0 . G G 8 A A A A P P O T o p t $ e a 1 r l a . r 6 t e 2 i n v 0 e g 1 n 6 e u $ f e f 0 55.5% 53.5% i c . 9 i e n c y r a t $ i 2 o . 0 2 0 1 7 $ 55.1% 1 51.1% . C G 0 o A r A * e P has trended down O N p o e $ n r a 2 i n t . 6 i t n e 2 g r 0 e 1 e s 8 f t f $ i e 45.0% 48.8% 1 c x i . p e 2 n e n c y s e r a t i $ o 0 * . 3 8 / 3 1 / 1 $ 9 44.7% 46.1% 0 . 4 0 2 4 6 0 0 0 % % % % 50 SVB 2014 4:3
Above-peer return onaverage equity higher interestratesandlower taxes due tostrongbalance sheetgrowth, Increase in2018ROEprimarily Q1 2019 2. 1. 2 1 2 1 1 1 2 1 Corporate andFinancial Results Overview 0 0 4 4 8 8 6 6 2 2 Annualized ROE istheaverage ofourpeergroupusingdata from S&P Global MarketIntelligence. “Peers” referstopeergroupasreported inourproxystatementsspecifictotheyearsreportedand are subjecttochangeonanannualbasis.Peer % % % % % % % % % % 1 8 1 2 . . 0 1 1 7 1 8 % 5 % 1 8 0 2 . . 0 8 9 3 1 0 6 % % S V B R O E 1 9 2 2 . . 0 7 3 7 1 8 % 7 % P e e r s 1 2 1 0 2 2 . 0 . 7 5 1 6 7 8 % % 3 2 1 / 2 2 3 . . 7 1 1 6 6 / 1 % % 9 2 51 2 SVB 2014 4:3
We are well capitalized -Holding Company Tangible commontotangibleassets equity 2) 1) • • • Tangible commontorisk-weighted equity Q1 2019 These arenon-GAAP measures. Pleaseseenon-GAAP reconciliationsat endofthispresentationformore information. ratios areasreported inourmostrecentquarterly earningsreleases. All ratios,except TCE/TA and TCE/RWA, areasreportedinourmostrecentbank holdingcompanyconsolidatedreportsonFormFR Y-9C. TCE/TA and TCE/RWA $116M ofsharesrepurchasedinQ1'19 $147M ofsharesrepurchasedinQ4'18 inNovember$500M ShareRepurchase2018 Program authorized SVB FinancialGroup Corporate andFinancial Results Overview Tier 1risk-based capital CET 1risk-based capital Total risk-based capital Tier 1leverage assets 2 1 2 12.28% 13.84 12.34 12.83 2015 7.63 7.16 12.80% 12.89 13.26 14.21 2016 8.34 8.15 12.78% 13.96 12.97 12.77 2017 8.34 8.16 13.41% 14.45 13.58 13.28 2018 9.06 8.99 3/31/19 12.77% 12.92 12.74 13.81 8.59 9.10 53 SVB 2014 4:3
We are well capitalized -Bank • • Tangible commontotangibleassets equity 2) 1) $140M in2018, $90M in2017 and$40Min2016 Strong Bankearnings resultedin$167M fromBanktoSVBFG ofdividends inQ1'19, 2015 Pressure onTier 1Leverage ratiofromexceptional in depositandtotalassetgrowth Q1 2019 Tangible commontorisk-weighted equity These arenon-GAAP measures. Pleaseseenon-GAAP reconciliationsat endofthispresentationformore information. ratios areasreported inourmostrecentquarterly earningsreleases. All ratios,except TCE/TA and TCE/RWA, areasreportedinourmostrecentbank holdingcompanyconsolidatedreportsonFormFR Y-9C. TCE/TA and TCE/RWA Corporate andFinancial Results Overview Silicon Valley Bank Tier 1risk-based capital CET 1risk-based capital Total risk-based capital Tier 1leverage assets 2 1 2 12.52% 13.60 12.59 12.52 2015 7.09 6.95 12.65% 13.66 12.65 12.75 2016 7.67 7.77 12.06% 13.04 12.06 11.98 2017 7.56 7.47 12.41% 12.28 13.32 12.41 2018 8.10 8.13 3/31/19 12.23% 12.20 13.16 12.23 7.99 8.38 54 SVB 2014 4:3
Q1 2019 Q4 and FY 2018Corporate andFinancialResultsQ4 andFY Overview Regulatory Corporate and Financial Results Overview February 1,2019 55 SVB20144:3
Complex regulatory environment As a growing, global bank with a holding company structure, we face a complex regulatory landscape. • Key areas of Focus ◦ Risk Management ◦ Bank Secrecy Act/Anti-Money Laundering (BSA/AML) ◦ Compliance ◦ General Data Protection Regulation (GDPR)/Privacy ◦ Cybersecurity • Current Expected Credit Loss (CECL) implementation • Ongoing investments in regulatory and compliance infrastructure Q1 2019 Corporate Overview and Financial Results 56
Core fee income reconciliationNon-GAAP Non-GAAP corefeeincome Less: othernoninterestincome Less: netgainsonequitywarrantassets Less: gainsoninvestmentsecurities,net GAAP noninterestincome Non-GAAP corefeeincome(dollarsinthousands) Non-GAAP corefee income Less: commissions Less: investmentbanking revenue banking revenueandcommissions Non-GAAP corefeeincomeincluding investment Less: othernoninterestincome Less: netgainsonequitywarrantassets Less: gainsoninvestmentsecurities,net GAAP noninterestincome Non-GAAP corefeeincome(dollarsinthousands) Non-GAAP corefeeincome Less: commissions Less: investmentbankingrevenue banking revenueandcommissions Non-GAAP corefeeincomeincludinginvestment Less: othernoninterestincome Less: netgainsonequitywarrantassets Less: gainsoninvestmentsecurities,net GAAP noninterestincome Non-GAAP corefeeincome(dollarsinthousands) 1) calculation andlimitations ofthismeasure. This isanon-GAAP measure. See“UseofNon-GAAP FinancialMeasures” attheendofourmostrecent quarterlyearningsreleaseforfurther informationregardingthe Q1 2019 Corporate andFinancial Results Overview 1 Dec 31, Jun 30, $112,776 $106,396 $106,396 $152,266 2016 2017 $74,454 2015 23,270 17,982 12,123 15,765 $265,382 $265,382 $472,794 9,963 5,089 47,004 70,963 89,445 — — — — Sep 30, Mar 31, $144,140 $115,010 $115,010 $155,518 2016 2018 $80,526 Year endedDecember 31, 18,878 21,558 23,178 12,259 19,191 9,058 2016 $316,170 $316,170 $456,552 — — 50,750 37,892 51,740 — — Dec 31, Jun 30, $113,502 $123,124 $123,124 $192,689 2016 2018 $84,648 Quarter ended 14,239 Quarter ended 14,390 19,061 36,114 4,639 9,976 — — 2017 $378,963 $378,963 $557,231 59,110 54,555 64,603 Sep 30, Mar 31, $117,659 $131,714 $131,714 $210,070 2017 2018 $82,578 — — 12,421 15,970 12,022 34,141 32,193 6,690 — — 2018 $515,890 $515,890 $744,984 Dec 31, Jun 30, 51,858 89,142 88,094 $128,528 $146,042 $146,042 $186,707 2017 2018 $87,267 12,811 10,820 17,630 13,187 16,749 10,729 — — — — Mar 31,2019 Sep 30, Mar 31, QTD $102,722 $158,778 $154,243 $218,146 $280,376 $154,243 $218,146 $280,376 2017 2019 15,896 24,922 15,238 14,108 49,795 11,897 21,305 29,028 14,108 49,795 11,897 21,305 29,028 58 SVB 2014 4:3
Non-marketable andother equity securities reconciliationNon-GAAP Total non-marketableandotherequitysecurities Investments inqualifiedaffordablehousing projects,net Non-marketable securities(equitymethod accounting): Other equitysecuritiesinpubliccompanies Non-marketable andotherequitysecurities(fairvalueaccounting): interests (dollarsinthousands) Composition ofnon-GAAP non-marketableandotherequitysecurities,netofnon-controlling Non-GAAP non-marketable andotherequitysecurities,netofnon-controllinginterests Less: amountsattributabletonon-controllinginterests GAAP non-marketable andotherequitysecurities (dollars inthousands) Non-GAAP non-marketable andotherequitysecurities,netofnon-controllinginterests Other investments China JointVenture Investment Debt funds Venture capitalandprivateequityfundinvestments Investments withoutareadilydeterminablefairvalue Unconsolidated venturecapitalandprivateequityfundinvestments Consolidated venturecapitalandprivateequityfundinvestments * Q1 2019 and limitationsof thismeasure. See “UseofNon-GAAP Financial Measures”attheendofour mostrecentquarterlyearnings release forfurtherinformationregarding thecalculation Corporate andFinancial Results Overview * Mar 31,2019 Mar 31,2019 $840,849 $840,849 $974,979 339,900 196,049 134,130 $28,055 47,849 79,415 95,223 10,736 37,796 5,826 59 SVB 2014 4:3
Net gains (losses)oninvestment securities reconciliationNon-GAAP noncontrolling interests Non-GAAP netgainsoninvestmentsecurities,of including carriedinterest Less: incomeattributabletononcontrollinginterests, GAAP netgainsoninvestmentsecurities (dollars inthousands) Non-GAAP netgains(losses)oninvestmentsecurities noncontrolling interests Non-GAAP netgains(losses)oninvestmentsecurities,of including carriedinterest Less: incomeattributabletononcontrollinginterests, GAAP netgainsoninvestmentsecurities (dollars inthousands) Non-GAAP netgains(losses)oninvestmentsecurities 1) calculation andlimitationsofthis measure. This isanon-GAAP measure.See“UseofNon-GAAP Financial Measures”attheendofourmostrecentquarterlyearnings releaseforfurtherinformationregardingthe Q1 2019 Corporate andFinancial Results Overview 1 Mar 31, 2015 2018 $(3,847) $57,330 $89,445 32,115 12,905 $9,058 Year endedDecember 31, Jun 30, 2016 2018 $43,428 $51,740 $26,442 $36,114 8,312 9,672 Quarter ended Sep 30, 2017 2018 $35,416 $64,603 $25,552 $32,193 29,187 6,641 Dec 31, 2018 2018 $49,911 $88,094 $10,729 38,183 $1,764 8,965 Mar 31, 2019 Q1'19 $25,592 $29,028 QTD $25,592 $29,028 3,436 3,436 60 SVB 2014 4:3
Non-GAAP reconciliation* Capital ratios Consolidated (SVBFG) TCE/TA and TCE/RWA Year ended December 31, Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios) 2015 2016 2017 2018 3/31/2019 GAAP SVBFG stockholders’ equity $3,198,134 $3,642,554 $4,179,795 $5,116,209 $5,342,773 Less: Intangible assets — — — — 193,219 Tangible common equity (TCE) $3,198,134 $3,642,554 $4,179,795 $5,116,209 $5,149,554 GAAP Total assets $44,686,703 $44,683,660 $51,214,467 $56,927,979 $60,160,285 Less: Intangible assets — — — — 193,219 Tangible assets (TA) $44,686,703 $44,683,660 $51,214,467 $56,927,979 $59,967,066 Risk-weighted assets (RWA) $25,919,594 $28,248,750 $32,736,959 $38,527,853 $40,424,499 Tangible common equity to tangible assets 7.16% 8.15% 8.16% 8.99% 8.59% Tangible common equity to risk-weighted assets 12.34% 12.89% 12.77% 13.28% 12.74% Bank only TCE/TA and TCE/RWA Year ended December 31, Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios) 2015 2016 2017 2018 Mar 31, 2019 Tangible common equity (TCE) $3,059,045 $3,423,427 $3,762,542 $4,554,814 $4,696,564 Tangible assets (TA) $44,045,967 $44,059,340 $50,383,774 $56,047,134 $58,774,326 Risk-weighted assets (RWA) $24,301,043 $26,856,850 $31,403,489 $37,104,080 $38,511,235 Tangible common equity to tangible assets 6.95% 7.77% 7.47% 8.13% 7.99% Tangible common equity to risk-weighted assets 12.59% 12.75% 11.98% 12.28% 12.20% * See “Use of Non-GAAP Financial Measures” at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this measure. Q1 2019 Corporate Overview and Financial Results 61
Non-GAAP noninterestincome,netofnoncontrolling interests carried interest Less: incomeattributabletononcontrollinginterests,including GAAP noninterestincome interests (dollarsinthousands) Non-GAAP Non-interestincome,netofnon-controlling interests Non-GAAP non-interestincome,netofnon-controlling including carriedinterests Less: incomeattributabletonon-controllinginterests, GAAP non-interestincome interests (dollarsinthousands) Non-GAAP non-interestincome,netofnon-controlling Non-interest income 1) reconciliationNon-GAAP calculation andlimitations of thismeasure. See “UseofNon-GAAP Financial Measures”attheendofourmostrecentquarterly earningsreleaseforfurtherinformationregardingthe Q1 2019 Corporate andFinancial Results Overview 2 1 Mar 31,2018 $155,518 2015 $441,058 $472,794 142,494 13,024 31,736 Jun 30,2018 Year endedDecember31, $192,689 2016 $448,513 $456,552 183,244 9,445 8,039 Quarter ended Sep 30,2018 $210,070 2017 $527,779 $557,231 203,378 29,452 6,692 1 Dec 31,2018 $186,707 2018 $706,984 $744,984 177,868 38,000 8,839 Mar 31,2019 Mar 31,2018 $280,376 QTD $277,128 $280,376 277,128 3,248 3,248 62 SVB 2014 4:3
Non-GAAP reconciliation Non-GAAP core operating efficiency ratio1 Year ended December 31, QTD (Dollars in thousands, except ratios) 2015 2016 2017 2018 Mar 31, 2019 GAAP noninterest expense A $ 779,962 $ 859,797 $1,010,655 $1,188,193 $ 365,664 Less: amounts attributable to noncontrolling interests 828 524 813 522 379 Non-GAAP noninterest expense, net of noncontrolling interests $ 779,134 $ 859,273 $1,009,842 $1,187,671 $ 365,285 Less: expense attributable to SVB Leerink — — — — 60,540 Non-GAAP noninterest expense, net of noncontrolling interests and SVB Leerink B $ 779,134 $ 859,273 $1,009,842 $1,187,671 $ 304,745 GAAP net interest income $1,006,425 $1,150,523 $1,420,369 $1,893,988 $ 512,886 Adjustments for taxable equivalent basis 1,564 1,203 3,076 9,201 2,907 Non-GAAP taxable equivalent net interest income $1,007,989 $1,151,726 $1,423,445 $1,903,189 $ 515,793 Less: income attributable to noncontrolling interests 8 66 33 30 11 Non-GAAP taxable equivalent net interest income, net of noncontrolling interests $1,007,981 $1,151,660 $1,423,412 $1,903,159 $ 515,782 Less: net interest income attributable to SVB Leerink — — — — 442 Non-GAAP taxable equivalent net interest income, net of noncontrolling interests and SVB Leerink $1,007,981 $1,151,660 $1,423,412 $1,903,159 $ 515,340 GAAP noninterest income $ 472,794 $ 456,552 $ 557,231 $ 744,984 $ 280,376 Less: income attributable to noncontrolling interests 31,736 8,039 29,452 38,000 3,248 Non-GAAP noninterest income, net of noncontrolling interests $ 441,058 $ 448,513 $ 527,779 $ 706,984 $ 277,128 Less: Non-GAAP net gains on investment securities, net of noncontrolling interests 89,445 51,740 64,603 88,094 25,592 Less: net gains on equity warrant assets 70,963 37.892 54,555 89,142 21,305 Less: investment banking revenue — — — — 49,795 Less: commissions — — — — 14,108 Non-GAAP noninterest income, net of noncontrolling interests and net of net gains on investments $ 280,650 $ 396,735 $ 408,621 $ 529,748 $ 166,328 securities, net gains on equity warrants assets, investment banking revenue and commissions GAAP total revenue C $1,479,219 $1,607,075 $1,977,600 $2,638,972 $ 793,262 Non-GAAP taxable equivalent revenue, net of noncontrolling interests and SVB Leerink, net of $1,288,631 $1,548,395 $1,832,033 $2,432,907 $ 681,668 net gains on investments securities, net gains on equity warrants assets, investment banking D revenue and commissions GAAP operating efficiency ratio (A/C) 52.73% 53.50% 51.11% 45.02% 46.10% Non-GAAP core operating efficiency ratio (B/D) 60.46% 55.49% 55.12% 48.82% 44.71% 1) See “Use of Non-GAAP Financial Measures” at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this measure. 2) This ratio excludes certain financial items where performance is typically subject to market or other conditions beyond our control. It is calculated by dividing noninterest expense by total revenue, after adjusting for noncontrolling interests, gains or losses on investment securities and equity warrant assets and Leerink fee income. Q1 2019 Corporate Overview and Financial Results 63
Q1 2019 Find Find Find moleary@svb.com T 408 654 6364 M 650 255 9934 9934 255 650 M 6364 654 408 T 3005 Tasman 95054 CA 3005 Clara, Drive Santa Head of Investor Relations Investor of Head MeghanO’Leary SVB SVB Corporate andFinancial Results Overview on LinkedIn, Facebook and Twitter and Facebook LinkedIn, on onLinkedIn, Facebook and Twitter 64 SVB 2014 4:3