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Delaware
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000-15637
|
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91-1962278
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(State or other jurisdiction
of incorporation)
|
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.142-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of Each Class
|
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Trading Symbol
|
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Name of Exchange on Which Registered
|
Common Stock, par value $0.001 per share
|
|
SIVB
|
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The Nasdaq Stock Market LLC
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Depositary shares, each representing a 1/40th interest in a share of 5.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A
|
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SIVBP
|
|
The Nasdaq Stock Market LLC
|
Item 2.02.
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Results of Operations and Financial Condition.
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Item 8.01.
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Other Events.
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Item 9.01.
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Financial Statements and Exhibits.
|
Date: April 23, 2020
|
|
|
|
SVB FINANCIAL GROUP
|
||
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By:
|
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/s/ KAREN HON
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Name:
|
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Karen Hon
|
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|
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Title:
|
|
Chief Accounting Officer and Principal Accounting Officer
|
3003 Tasman Drive, Santa Clara, CA 95054
|
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Contact:
|
www.svb.com
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|
|
Meghan O'Leary
|
|
|
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Investor Relations
|
For release at 1:00 P.M. (Pacific Time)
|
|
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(408) 654-6364
|
||
April 23, 2020
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NASDAQ: SIVB
|
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|
|
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|
|
•
|
Average loans of $33.7 billion, an increase of $1.7 billion (or 5.2 percent).
|
•
|
Period-end loans of $36.0 billion, an increase of $2.8 billion (or 8.5 percent).
|
•
|
Average fixed income investment securities of $27.1 billion, an increase of $0.5 billion (or 1.8 percent).
|
•
|
Period-end fixed income investment securities of $26.2 billion, a decrease of $1.6 billion (or 5.9 percent).
|
•
|
Average total client funds (on-balance sheet deposits and off-balance sheet client investment funds) increased $8.6 billion (or 5.5 percent) to $165.4 billion.
|
•
|
Period-end total client funds increased $7.9 billion (or 4.9 percent) to $168.9 billion.
|
•
|
Net interest income (fully taxable equivalent basis) of $527.5 million, a decrease of $9.3 million (or 1.7 percent).
|
•
|
Provision for credit losses of $243.5 million, compared to $17.4 million.
|
•
|
Recognized a $48.5 million (pre-tax) increase to our allowance for credit losses for loans, unfunded credit commitments and HTM securities from the day one adoption impact of CECL.
|
•
|
Net loan charge-offs of $29.1 million, or 35 basis points of average total loans (annualized), compared to $14.4 million, or 18 basis points.
|
•
|
Net gains on investment securities of $46.1 million, which includes gains on sales of fixed income investment securities of $61.2 million offset by losses on equity investment securities, compared to $28.1 million. Non-GAAP net gains on investment securities, net of noncontrolling interests, were $47.6 million, compared to $16.3 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”)
|
•
|
Net gains on equity warrant assets of $13.4 million, compared to $30.9 million.
|
•
|
Noninterest income of $301.9 million, a decrease of $11.4 million (or 3.6 percent). Non-GAAP core fee income increased $0.4 million (or 0.2 percent) to $168.5 million. Non-GAAP core fee income plus investment banking revenue and commissions decreased $10.4 million (or 4.3 percent) to $231.3 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”)
|
•
|
Noninterest expense of $399.6 million, a decrease of $61.2 million (or 13.3 percent).
|
•
|
Effective tax rate of 26.7 percent compared to 26.4 percent.
|
•
|
GAAP operating efficiency ratio of 48.37 percent, a decrease of 603 basis points. Non-GAAP core operating efficiency ratio of 47.71 percent, a decrease of 607 basis points. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”)
|
•
|
Termination and net settlement of all interest rate swap cash flow hedge contracts resulting in the recording of pre-tax unrealized gains of $226.9 million to accumulated other comprehensive income, which will be reclassified into interest income from loans over approximately five years.
|
(Dollars in millions, except share data, employees and ratios)
|
|
Three months ended
|
||||||||||||||||||
March 31,
2020 |
|
December 31,
2019 |
|
September 30,
2019 |
|
June 30,
2019 |
|
March 31,
2019 |
||||||||||||
Income statement:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per common share
|
|
$
|
2.55
|
|
|
$
|
5.06
|
|
|
$
|
5.15
|
|
|
$
|
6.08
|
|
|
$
|
5.44
|
|
Net income available to common stockholders
|
|
132.3
|
|
|
262.9
|
|
|
267.3
|
|
|
318.0
|
|
|
288.7
|
|
|||||
Net interest income
|
|
524.1
|
|
|
533.7
|
|
|
520.6
|
|
|
529.4
|
|
|
512.9
|
|
|||||
Provision for credit losses
|
|
243.5
|
|
|
17.4
|
|
|
36.5
|
|
|
23.9
|
|
|
28.6
|
|
|||||
Noninterest income
|
|
301.9
|
|
|
313.3
|
|
|
294.0
|
|
|
333.8
|
|
|
280.4
|
|
|||||
Noninterest expense
|
|
399.6
|
|
|
460.8
|
|
|
391.3
|
|
|
383.5
|
|
|
365.7
|
|
|||||
Non-GAAP core fee income (1)
|
|
168.5
|
|
|
168.1
|
|
|
162.2
|
|
|
157.3
|
|
|
154.2
|
|
|||||
Non-GAAP core fee income, plus investment banking revenue and commissions (1)
|
|
231.3
|
|
|
241.8
|
|
|
213.0
|
|
|
220.5
|
|
|
218.1
|
|
|||||
Non-GAAP noninterest income, net of noncontrolling interests (1)
|
|
303.8
|
|
|
301.3
|
|
|
279.4
|
|
|
315.0
|
|
|
277.1
|
|
|||||
Non-GAAP noninterest expense, net of noncontrolling interests (1)
|
|
399.4
|
|
|
460.6
|
|
|
391.2
|
|
|
383.4
|
|
|
365.3
|
|
|||||
Fully taxable equivalent:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (1) (2)
|
|
$
|
527.5
|
|
|
$
|
536.8
|
|
|
$
|
523.6
|
|
|
$
|
532.3
|
|
|
$
|
515.8
|
|
Net interest margin
|
|
3.12
|
%
|
|
3.26
|
%
|
|
3.34
|
%
|
|
3.68
|
%
|
|
3.81
|
%
|
|||||
Balance sheet:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average total assets
|
|
$
|
72,407.2
|
|
|
$
|
69,139.0
|
|
|
$
|
65,327.7
|
|
|
$
|
60,700.5
|
|
|
$
|
57,528.4
|
|
Average loans, amortized cost
|
|
33,660.7
|
|
|
32,008.9
|
|
|
29,822.4
|
|
|
29,406.6
|
|
|
28,388.1
|
|
|||||
Average available-for-sale securities
|
|
13,565.9
|
|
|
12,640.5
|
|
|
10,600.4
|
|
|
8,205.3
|
|
|
6,870.2
|
|
|||||
Average held-to-maturity securities
|
|
13,576.1
|
|
|
14,023.0
|
|
|
14,534.5
|
|
|
14,922.6
|
|
|
15,224.0
|
|
|||||
Average noninterest-bearing demand deposits
|
|
41,336.0
|
|
|
39,627.7
|
|
|
39,146.2
|
|
|
38,117.9
|
|
|
38,222.7
|
|
|||||
Average interest-bearing deposits
|
|
20,472.2
|
|
|
20,549.8
|
|
|
18,088.8
|
|
|
14,844.3
|
|
|
11,491.5
|
|
|||||
Average total deposits
|
|
61,808.2
|
|
|
60,177.5
|
|
|
57,235.0
|
|
|
52,962.2
|
|
|
49,714.2
|
|
|||||
Average short-term borrowings
|
|
969.9
|
|
|
18.8
|
|
|
22.0
|
|
|
189.0
|
|
|
353.4
|
|
|||||
Average long-term debt
|
|
348.0
|
|
|
651.7
|
|
|
697.1
|
|
|
696.8
|
|
|
696.6
|
|
|||||
Period-end total assets
|
|
75,009.6
|
|
|
71,004.9
|
|
|
68,231.2
|
|
|
63,773.7
|
|
|
60,160.3
|
|
|||||
Period-end loans, amortized cost
|
|
35,968.1
|
|
|
33,164.6
|
|
|
31,064.0
|
|
|
29,209.6
|
|
|
28,850.4
|
|
|||||
Period-end available-for-sale securities
|
|
12,648.1
|
|
|
14,014.9
|
|
|
12,866.9
|
|
|
7,940.3
|
|
|
6,755.1
|
|
|||||
Period-end held-to-maturity securities
|
|
13,574.3
|
|
|
13,842.9
|
|
|
14,407.1
|
|
|
14,868.8
|
|
|
15,055.3
|
|
|||||
Period-end non-marketable and other equity securities
|
|
1,200.6
|
|
|
1,213.8
|
|
|
1,150.1
|
|
|
1,079.7
|
|
|
975.0
|
|
|||||
Period-end noninterest-bearing demand deposits
|
|
42,902.2
|
|
|
40,841.6
|
|
|
40,480.6
|
|
|
39,331.5
|
|
|
39,278.7
|
|
|||||
Period-end interest-bearing deposits
|
|
19,009.8
|
|
|
20,916.2
|
|
|
19,062.3
|
|
|
16,279.1
|
|
|
13,048.5
|
|
|||||
Period-end total deposits
|
|
61,912.0
|
|
|
61,757.8
|
|
|
59,542.9
|
|
|
55,610.5
|
|
|
52,327.2
|
|
|||||
Period-end short-term borrowings
|
|
3,138.2
|
|
|
17.4
|
|
|
18.9
|
|
|
24.3
|
|
|
14.5
|
|
|||||
Period-end long-term debt
|
|
348.1
|
|
|
348.0
|
|
|
697.2
|
|
|
697.0
|
|
|
696.7
|
|
|||||
Off-balance sheet:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average client investment funds
|
|
$
|
103,590.8
|
|
|
$
|
96,643.2
|
|
|
$
|
92,824.9
|
|
|
$
|
89,651.8
|
|
|
$
|
87,414.3
|
|
Period-end client investment funds
|
|
106,951.7
|
|
|
99,192.6
|
|
|
96,472.3
|
|
|
91,495.4
|
|
|
88,181.7
|
|
|||||
Total unfunded credit commitments
|
|
24,240.6
|
|
|
24,521.9
|
|
|
22,274.4
|
|
|
20,952.1
|
|
|
20,267.5
|
|
|||||
Earnings ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets (annualized) (3)
|
|
0.73
|
%
|
|
1.51
|
%
|
|
1.62
|
%
|
|
2.10
|
%
|
|
2.04
|
%
|
|||||
Return on average SVBFG common stockholders’ equity (annualized) (4)
|
|
8.17
|
|
|
17.03
|
|
|
18.27
|
|
|
23.29
|
|
|
22.16
|
|
|||||
Asset quality ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses for loans as a % of total loans (8)
|
|
1.53
|
%
|
|
0.91
|
%
|
|
0.97
|
%
|
|
1.03
|
%
|
|
1.03
|
%
|
|||||
Allowance for credit losses for performing loans as a % of total performing loans (8)
|
|
1.43
|
|
|
0.78
|
|
|
0.81
|
|
|
0.85
|
|
|
0.83
|
|
|||||
Gross loan charge-offs as a % of average total loans (annualized) (8)
|
|
0.44
|
|
|
0.25
|
|
|
0.49
|
|
|
0.36
|
|
|
0.13
|
|
|||||
Net loan charge-offs as a % of average total loans (annualized) (8)
|
|
0.35
|
|
|
0.18
|
|
|
0.44
|
|
|
0.23
|
|
|
0.11
|
|
|||||
Other ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP operating efficiency ratio (5)
|
|
48.37
|
%
|
|
54.40
|
%
|
|
48.04
|
%
|
|
44.43
|
%
|
|
46.10
|
%
|
|||||
Non-GAAP core operating efficiency ratio (1)
|
|
47.71
|
|
|
53.78
|
|
|
48.05
|
|
|
45.49
|
|
|
44.71
|
|
|||||
Total cost of deposits (annualized) (6)
|
|
0.24
|
|
|
0.31
|
|
|
0.38
|
|
|
0.36
|
|
|
0.23
|
|
|||||
SVBFG CET 1 risk-based capital ratio
|
|
12.36
|
|
|
12.58
|
|
|
12.71
|
|
|
12.92
|
|
|
12.89
|
|
Bank CET 1 risk-based capital ratio
|
|
10.92
|
|
|
11.12
|
|
|
11.48
|
|
|
12.50
|
|
|
12.35
|
|
|||||
SVBFG total risk-based capital ratio
|
|
14.44
|
|
|
14.23
|
|
|
13.70
|
|
|
13.97
|
|
|
13.94
|
|
|||||
Bank total risk-based capital ratio
|
|
12.03
|
|
|
11.96
|
|
|
12.36
|
|
|
13.44
|
|
|
13.29
|
|
|||||
SVBFG tier 1 leverage ratio
|
|
9.01
|
|
|
9.06
|
|
|
8.64
|
|
|
8.82
|
|
|
9.10
|
|
|||||
Bank tier 1 leverage ratio
|
|
7.21
|
|
|
7.30
|
|
|
7.48
|
|
|
8.17
|
|
|
8.38
|
|
|||||
Period-end loans, amortized cost, to deposits ratio
|
|
58.10
|
|
|
53.70
|
|
|
52.17
|
|
|
52.53
|
|
|
55.13
|
|
|||||
Average loans, amortized cost, to average deposits ratio
|
|
54.46
|
|
|
53.19
|
|
|
52.11
|
|
|
55.52
|
|
|
57.10
|
|
|||||
Book value per common share (7)
|
|
$
|
130.02
|
|
|
$
|
118.67
|
|
|
$
|
114.26
|
|
|
$
|
107.72
|
|
|
$
|
102.11
|
|
Other statistics:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average full-time equivalent ("FTE") employees
|
|
3,672
|
|
|
3,522
|
|
|
3,413
|
|
|
3,287
|
|
|
3,228
|
|
|||||
Period-end full-time equivalent ("FTE") employees
|
|
3,710
|
|
|
3,564
|
|
|
3,460
|
|
|
3,314
|
|
|
3,250
|
|
|
(1)
|
To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP measures. A reconciliation of these non-GAAP measures to the most closely related GAAP measures is provided at the end of this release under the section “Use of Non-GAAP Financial Measures.”
|
(2)
|
Interest income on non-taxable investments is presented on a fully taxable equivalent basis using the federal statutory income tax rate of 21.0 percent. The taxable equivalent adjustments were $3.4 million for the quarter ended March 31, 2020, $3.2 million for the quarter ended December 31, 2019, $3.0 million for the quarter ended September 30, 2019, $2.9 million for the quarter ended June 30, 2019 and $2.9 million for the quarter ended March 31, 2019.
|
(3)
|
Ratio represents annualized consolidated net income available to common stockholders divided by average assets.
|
(4)
|
Ratio represents annualized consolidated net income available to common stockholders divided by average SVB Financial Group ("SVBFG") common stockholders’ equity.
|
(5)
|
Ratio is calculated by dividing noninterest expense by total net interest income plus noninterest income.
|
(6)
|
Ratio represents annualized total cost of deposits and is calculated by dividing interest expense from deposits by average total deposits.
|
(7)
|
Book value per common share is calculated by dividing total SVBFG common stockholders’ equity by total outstanding common shares.
|
(8)
|
For the quarter ended March 31, 2020, the ratios are calculated using the amortized cost basis for total loans as a result of the adoption of CECL. Prior period ratios were calculated using total gross loans in accordance with previous methodology.
|
•
|
A decrease in interest income from loans of $14.1 million to $382.6 million for the first quarter of 2020. The decrease was due primarily to a $20.0 million decrease from lower gross loan yields and a $10.7 million decrease in loan fees from early payoffs and other loan fee income as well as a $4.7 million decrease due to the impact of one less day in the first quarter of 2020. These decreases were partially offset by a $17.1 million increase in loan interest income reflective of $1.7 billion in average loan growth.
|
◦
|
The decrease in interest income from loans was also partially offset by a $4.2 million increase in gains on our interest rate swap cash flow hedge contracts as well as a $2.5 million benefit from effective loan floors. These gains were primarily due to the decrease in Federal Funds interest rates resulting in the hedges entering a gain position in addition to further declines in LIBOR. As of March 31, 2020, we have terminated, and net settled, all of our interest rate swap cash flow hedge contracts and recorded pre-tax unrealized gains of $226.9 million to accumulated other comprehensive income. The unrealized gains will be reclassified into interest income from loans over approximately five years based on the timing of cash flows from the hedged variable-rate loans.
|
◦
|
Overall loan yields decreased 35 basis points to 4.57 percent, driven primarily by a 25 basis point decrease in our gross loan yields due to the impact of the decreases in Federal Funds interest rates during March 2020. An additional 15 basis point decrease in loan fee yields was due primarily to a decrease in early payoffs in the first quarter of 2020 as compared to the fourth quarter of 2019. The decrease in gross loan yields was offset partially by a five basis point increase in gross loan yields reflective of gains on our interest rate swap cash flow hedge contracts as mentioned above.
|
•
|
A decrease of $4.4 million in interest income from short-term investment securities reflective primarily of the decreases in Federal Funds interest rates partially offset by a $0.7 billion increase in average interest-earning cash balances, and
|
•
|
A decrease of $2.6 million in interest income from our fixed income investment securities due primarily to a decrease in yields reflective of higher prepayments on mortgage backed securities resulting in accelerated premium amortization of $13.0 million for the first quarter of 2020 compared to $5.5 million for the previous
|
•
|
An $11.8 million decrease in interest expense driven primarily by a decrease of $9.5 million of interest paid on our interest-bearing deposits due to market rate decreases and a $1.5 million decrease in interest expense on borrowings due to the extinguishment of our 5.375% Senior Notes in December 2019.
|
(Dollars in thousands)
|
|
Balance at December 31, 2019
|
|
Adjustments Due to Adoption of ASC 326
|
|
Balance at
January 1, 2020
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Allowance for credit losses: loans
|
|
$
|
304,924
|
|
|
$
|
25,464
|
|
|
$
|
330,388
|
|
Allowance for credit losses: held-to-maturity securities
|
|
—
|
|
|
174
|
|
|
174
|
|
|||
Deferred tax assets
|
|
28,433
|
|
|
13,415
|
|
|
41,848
|
|
|||
Other liabilities:
|
|
|
|
|
|
|
||||||
Allowance for credit losses: unfunded credit commitments
|
|
67,656
|
|
|
22,826
|
|
|
90,482
|
|
|||
Stockholders' equity:
|
|
|
|
|
|
|
||||||
Retained earnings, net of tax
|
|
4,575,601
|
|
|
(35,049
|
)
|
|
4,540,552
|
|
(iii)
|
Cash Flow/Balance Sheet Dependent
|
(iv)
|
Private Equity/Venture Capital
|
(v)
|
Private Bank
|
(vi)
|
Other (premium wine and other)
|
|
|
Three months ended
|
||||||||||
(Dollars in thousands, except ratios)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Allowance for credit losses for loans, beginning balance
|
|
$
|
304,924
|
|
|
$
|
304,410
|
|
|
$
|
280,903
|
|
Day one impact of adopting CECL
|
|
25,464
|
|
|
—
|
|
|
—
|
|
|||
Provision for loans
|
|
248,901
|
|
|
13,229
|
|
|
25,821
|
|
|||
Gross loan charge-offs
|
|
(36,896
|
)
|
|
(20,348
|
)
|
|
(9,000
|
)
|
|||
Loan recoveries
|
|
7,755
|
|
|
5,905
|
|
|
1,425
|
|
|||
Foreign currency translation adjustments
|
|
(1,185
|
)
|
|
1,728
|
|
|
1,002
|
|
|||
Allowance for credit losses for loans, ending balance
|
|
$
|
548,963
|
|
|
$
|
304,924
|
|
|
$
|
300,151
|
|
Allowance for credit losses for unfunded credit commitments, beginning balance
|
|
67,656
|
|
|
63,108
|
|
|
55,183
|
|
|||
Day one impact of adopting CECL
|
|
22,826
|
|
|
—
|
|
|
—
|
|
|||
(Reduction of) provision for unfunded credit commitments
|
|
(5,477
|
)
|
|
4,154
|
|
|
2,730
|
|
|||
Foreign currency translation adjustments
|
|
(315
|
)
|
|
394
|
|
|
57
|
|
|||
Allowance for credit losses for unfunded credit commitments, ending balance (1)
|
|
$
|
84,690
|
|
|
$
|
67,656
|
|
|
$
|
57,970
|
|
Allowance for credit losses for HTM securities, beginning balance
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Day one impact of adopting CECL
|
|
174
|
|
|
—
|
|
|
—
|
|
|||
Provision for HTM securities
|
|
56
|
|
|
—
|
|
|
—
|
|
|||
Allowance for credit losses for HTM securities, ending balance (2)
|
|
$
|
230
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Ratios and other information:
|
|
|
|
|
|
|
||||||
Provision for loans as a percentage of period-end total loans (annualized) (3)
|
|
2.78
|
%
|
|
0.16
|
%
|
|
0.36
|
%
|
|||
Gross loan charge-offs as a percentage of average total loans (annualized) (3)
|
|
0.44
|
|
|
0.25
|
|
|
0.13
|
|
|||
Net loan charge-offs as a percentage of average total loans (annualized) (3)
|
|
0.35
|
|
|
0.18
|
|
|
0.11
|
|
|||
Allowance for credit losses for loans as a percentage of period-end total loans (3)
|
|
1.53
|
|
|
0.91
|
|
|
1.03
|
|
|||
Provision for credit losses
|
|
$
|
243,480
|
|
|
$
|
17,383
|
|
|
$
|
28,551
|
|
Period-end total loans (3)
|
|
35,968,085
|
|
|
33,327,704
|
|
|
29,020,519
|
|
|||
Average total loans (3)
|
|
33,660,728
|
|
|
32,166,620
|
|
|
28,555,655
|
|
|||
Allowance for credit losses for nonaccrual loans
|
|
34,876
|
|
|
44,859
|
|
|
61,225
|
|
|||
Nonaccrual loans (3)
|
|
50,607
|
|
|
102,669
|
|
|
133,623
|
|
|
(1)
|
The “allowance for credit losses for unfunded credit commitments” is included as a component of “other liabilities.”
|
(2)
|
The "allowance for credit losses for HTM securities" is included as a component of HTM securities and presented net in our consolidated financial statements.
|
(3)
|
For the three months ended March 31, 2020, loan amounts are disclosed, and ratios are calculated, using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed, and ratios are calculated, using the gross basis in accordance with previous methodology.
|
•
|
A provision for credit losses for loans of $248.9 million, driven primarily by $190.7 million in additional reserves for our performing loans based on our forecast models of the current economic environment, including the impact of the COVID-19 pandemic, as well as changes in loan composition within our portfolio segments, $40.9 million in additional reserves for period-end loan growth, $13.1 million for charge-offs not specifically reserved for at December 31, 2019 and $10.7 million in net new nonaccrual loans, partially offset by $7.8 million of recoveries, and
|
•
|
A reduction of our expected credit losses for unfunded credit commitments of $5.5 million, driven primarily by a decrease in the expected future commitments for milestone tranches, which are tied to company performance or additional funding rounds, based on our forecast models of the current economic environment, including the impact of the COVID-19 pandemic, and by a decrease in overall unfunded credit commitments of $0.3 billion.
|
•
|
Gains of $61.2 million from our AFS debt securities portfolio, resulting from the sale of $2.6 billion of U.S. Treasury securities during the quarter, offset by,
|
•
|
Losses of $4.2 million from our public equity securities investments, primarily driven by unrealized losses due to decreases in the value of public equity securities held, and
|
•
|
Losses of $7.5 million from our SVB Capital managed funds and strategic direct investments (comprised of our managed funds of funds, managed direct venture funds, debt funds and strategic and other investments components below) primarily driven by a downward valuation adjustment of $17.1 million for illiquid investments held in the private managed funds and companies of our portfolios due to the current market volatility. The downward valuation adjustment was offset by unrealized net valuation increases from private company investments held in these portfolios.
|
|
|
Three months ended March 31, 2020
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Managed
Funds of Funds |
|
Managed Direct Venture Funds
|
|
Public Equity Securities
|
|
Sales of AFS Debt Securities
|
|
Debt
Funds
|
|
Strategic
and Other
Investments
|
|
SVB Leerink
|
|
Total
|
||||||||||||||||
GAAP (losses) gains on investment securities, net
|
|
$
|
(2,464
|
)
|
|
$
|
(2,272
|
)
|
|
$
|
(4,206
|
)
|
|
$
|
61,165
|
|
|
$
|
(362
|
)
|
|
$
|
(4,017
|
)
|
|
$
|
(1,789
|
)
|
|
$
|
46,055
|
|
Less: (loss) income attributable to noncontrolling interests, including carried interest allocation
|
|
(306
|
)
|
|
(1,327
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
(1,535
|
)
|
||||||||
Non-GAAP (losses) gains on investment securities, net of noncontrolling interests
|
|
$
|
(2,158
|
)
|
|
$
|
(945
|
)
|
|
$
|
(4,206
|
)
|
|
$
|
61,165
|
|
|
$
|
(362
|
)
|
|
$
|
(4,017
|
)
|
|
$
|
(1,887
|
)
|
|
$
|
47,590
|
|
|
|
Three months ended December 31, 2019
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Managed
Funds of Funds
|
|
Managed Direct Venture Funds
|
|
Public Equity Securities
|
|
Sales of AFS Debt Securities
|
|
Debt
Funds
|
|
Strategic
and Other
Investments
|
|
SVB Leerink
|
|
Total
|
||||||||||||||||
GAAP gains (losses) on investment securities, net
|
|
$
|
14,152
|
|
|
$
|
4,847
|
|
|
$
|
6,829
|
|
|
$
|
—
|
|
|
$
|
118
|
|
|
$
|
2,753
|
|
|
$
|
(604
|
)
|
|
$
|
28,095
|
|
Less: income attributable to noncontrolling interests, including carried interest allocation
|
|
6,814
|
|
|
4,549
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
464
|
|
|
11,827
|
|
||||||||
Non-GAAP gains (losses) on investment securities, net of noncontrolling interests
|
|
$
|
7,338
|
|
|
$
|
298
|
|
|
$
|
6,829
|
|
|
$
|
—
|
|
|
$
|
118
|
|
|
$
|
2,753
|
|
|
$
|
(1,068
|
)
|
|
$
|
16,268
|
|
|
|
Three months ended
|
||||||||||
(Dollars in thousands)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Equity warrant assets:
|
|
|
|
|
|
|
||||||
Gains on exercises, net
|
|
$
|
19,193
|
|
|
$
|
13,228
|
|
|
$
|
5,482
|
|
Terminations
|
|
(326
|
)
|
|
(410
|
)
|
|
(415
|
)
|
|||
Changes in fair value, net
|
|
(5,472
|
)
|
|
18,047
|
|
|
16,238
|
|
|||
Total net gains on equity warrant assets
|
|
$
|
13,395
|
|
|
$
|
30,865
|
|
|
$
|
21,305
|
|
|
|
Three months ended
|
||||||||||
(Dollars in thousands)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Non-GAAP core fee income:
|
|
|
|
|
|
|
||||||
Client investment fees
|
|
$
|
43,393
|
|
|
$
|
45,163
|
|
|
$
|
44,482
|
|
Foreign exchange fees
|
|
47,505
|
|
|
42,399
|
|
|
38,048
|
|
|||
Credit card fees
|
|
28,304
|
|
|
32,288
|
|
|
27,483
|
|
|||
Deposit service charges
|
|
24,589
|
|
|
23,704
|
|
|
20,939
|
|
|||
Lending related fees
|
|
13,125
|
|
|
13,063
|
|
|
13,937
|
|
|||
Letters of credit and standby letters of credit fees
|
|
11,542
|
|
|
11,464
|
|
|
9,354
|
|
|||
Total Non-GAAP core fee income
|
|
$
|
168,458
|
|
|
$
|
168,081
|
|
|
$
|
154,243
|
|
Investment banking revenue
|
|
46,867
|
|
|
58,172
|
|
|
49,795
|
|
|||
Commissions
|
|
16,022
|
|
|
15,534
|
|
|
14,108
|
|
|||
Total Non-GAAP core fee income plus investment banking revenue and commissions
|
|
$
|
231,347
|
|
|
$
|
241,787
|
|
|
$
|
218,146
|
|
|
|
Three months ended
|
||||||||||
(Dollars in thousands, except employees)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Compensation and benefits:
|
|
|
|
|
|
|
||||||
Salaries and wages
|
|
$
|
115,614
|
|
|
$
|
120,028
|
|
|
$
|
101,200
|
|
Incentive compensation plans
|
|
66,674
|
|
|
87,590
|
|
|
69,389
|
|
|||
Other employee incentives and benefits (1)
|
|
73,298
|
|
|
67,043
|
|
|
67,472
|
|
|||
Total compensation and benefits
|
|
$
|
255,586
|
|
|
$
|
274,661
|
|
|
$
|
238,061
|
|
Period-end full-time equivalent employees
|
|
3,710
|
|
|
3,564
|
|
|
3,250
|
|
|||
Average full-time equivalent employees
|
|
3,672
|
|
|
3,522
|
|
|
3,228
|
|
|
(1)
|
Other employee incentives and benefits expense includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), ESOP, warrant incentive and retention plans, agency fees and other employee-related expenses.
|
•
|
A decrease of $20.9 million in incentive compensation plans expense attributable primarily to the decrease in our incentive accruals as a result of our revised 2020 full-year projected financial performance attributable to the projected financial impact of the COVID-19 pandemic, and
|
•
|
A decrease of $4.4 million in salaries and wages expense due primarily to a $10.3 million decrease related to higher nonrecurring compensation costs during the fourth quarter of 2019, partially offset by a $3.9 million increase in salaries and wages reflective of the increase in average full-time employees as well as merit increases, partially offset by
|
•
|
An increase of $6.2 million in other employee incentives and benefits expense due primarily to $10.6 million in first quarter seasonal expense items relating to additional 401(k) matching contributions and employer-related payroll taxes as a result of the 2019 annual incentive compensation plan payments, partially offset by a decrease in our deferred compensation plan related to the depreciation in market valuations in the underlying investment securities in the plan for the first quarter of 2020 compared to the fourth quarter of 2019.
|
|
|
Three months ended
|
||||||||||
(Dollars in thousands)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Net interest income (1)
|
|
$
|
(21
|
)
|
|
$
|
(31
|
)
|
|
$
|
(11
|
)
|
Noninterest losses (income) (1)
|
|
2,491
|
|
|
(704
|
)
|
|
(2,270
|
)
|
|||
Noninterest expense (1)
|
|
140
|
|
|
143
|
|
|
379
|
|
|||
Carried interest allocation (2)
|
|
(637
|
)
|
|
(11,368
|
)
|
|
(978
|
)
|
|||
Net loss (income) attributable to noncontrolling interests
|
|
$
|
1,973
|
|
|
$
|
(11,960
|
)
|
|
$
|
(2,880
|
)
|
|
(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.
|
|
Current Outlook for Quarter Ending June 30, 2020 (as of April 23, 2020)
|
Average loan balances
|
Flat to slightly lower than period-end March 31, 2020 balances
|
Average deposit balances
|
Flat to slightly lower than quarter ending March 31, 2020 average balances
|
Net interest income (1)
|
Between $490 million to $520 million
|
Net interest margin (1)
|
Between 2.90% and 3.05%
|
Noninterest expense (2) (3)
|
Between $390 million to $410 million
|
Effective tax rate (4)
|
Between 27% and 29%
|
|
(1)
|
Our outlook for net interest income and net interest margin is based primarily on management's current forecast of average deposit and loan balances and deployment of surplus cash into investment securities. Such forecasts are subject to change, and actual results may differ, based on market conditions, the COVID-19 pandemic and its effects on the economic and business environments in which we operate, actual prepayment rates and other factors described under the section "Forward-Looking Statements" below.
|
(2)
|
Noninterest expense (excluding expenses related to noncontrolling interests) is a non-GAAP measure, which represents noninterest expense, but excludes expenses attributable to noncontrolling interests. As we are unable to quantify such line items that would be required to be included in the comparable GAAP financial measure for the future period presented without unreasonable efforts, no reconciliation for the outlook of non-GAAP noninterest expense (excluding expenses related to noncontrolling interests) to GAAP noninterest expense for the quarter ending June 30, 2020 is included in this release, as we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors. See "Use of Non-GAAP Financial Measures" at the end of this release for further information regarding the calculation and limitations of this measure.
|
(3)
|
Our outlook for noninterest expense is partly based on management's current forecast of performance-based incentive compensation expenses. Such forecasts are subject to change, and actual results may differ, based on our performance relative to our internal performance targets.
|
(4)
|
Our outlook for our effective tax rate is based on management's current assumptions with respect to, among other things, SVB Financial Group's earnings, state income tax levels, tax deductions and estimated performance-based compensation activity.
|
•
|
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);
|
•
|
the COVID-19 pandemic and its effects on the economic and business environments in which we operate;
|
•
|
changes in the volume and credit quality of our loans as well as volatility of our levels of nonperforming assets and charge-offs;
|
•
|
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;
|
•
|
changes in applicable accounting standards and tax laws; and
|
•
|
regulatory or legal changes or their impact on us.
|
|
|
Three months ended
|
||||||||||
(Dollars in thousands, except share data)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans
|
|
$
|
382,569
|
|
|
$
|
396,698
|
|
|
$
|
394,144
|
|
Investment securities:
|
|
|
|
|
|
|
||||||
Taxable
|
|
154,385
|
|
|
158,083
|
|
|
126,717
|
|
|||
Non-taxable
|
|
12,824
|
|
|
11,961
|
|
|
10,937
|
|
|||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities
|
|
17,624
|
|
|
21,993
|
|
|
19,216
|
|
|||
Total interest income
|
|
567,402
|
|
|
588,735
|
|
|
551,014
|
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Deposits
|
|
37,398
|
|
|
47,509
|
|
|
27,907
|
|
|||
Borrowings
|
|
5,867
|
|
|
7,558
|
|
|
10,221
|
|
|||
Total interest expense
|
|
43,265
|
|
|
55,067
|
|
|
38,128
|
|
|||
Net interest income
|
|
524,137
|
|
|
533,668
|
|
|
512,886
|
|
|||
Provision for credit losses
|
|
243,480
|
|
|
17,383
|
|
|
28,551
|
|
|||
Net interest income after provision for credit losses
|
|
280,657
|
|
|
516,285
|
|
|
484,335
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
||||||
Gains on investment securities, net
|
|
46,055
|
|
|
28,095
|
|
|
29,028
|
|
|||
Gains on equity warrant assets, net
|
|
13,395
|
|
|
30,865
|
|
|
21,305
|
|
|||
Client investment fees
|
|
43,393
|
|
|
45,163
|
|
|
44,482
|
|
|||
Foreign exchange fees
|
|
47,505
|
|
|
42,399
|
|
|
38,048
|
|
|||
Credit card fees
|
|
28,304
|
|
|
32,288
|
|
|
27,483
|
|
|||
Deposit service charges
|
|
24,589
|
|
|
23,704
|
|
|
20,939
|
|
|||
Lending related fees
|
|
13,125
|
|
|
13,063
|
|
|
13,937
|
|
|||
Letters of credit and standby letters of credit fees
|
|
11,542
|
|
|
11,464
|
|
|
9,354
|
|
|||
Investment banking revenue
|
|
46,867
|
|
|
58,172
|
|
|
49,795
|
|
|||
Commissions
|
|
16,022
|
|
|
15,534
|
|
|
14,108
|
|
|||
Other
|
|
11,137
|
|
|
12,597
|
|
|
11,897
|
|
|||
Total noninterest income
|
|
301,934
|
|
|
313,344
|
|
|
280,376
|
|
|||
Noninterest expense:
|
|
|
|
|
|
|
||||||
Compensation and benefits
|
|
255,586
|
|
|
274,661
|
|
|
238,061
|
|
|||
Professional services
|
|
38,705
|
|
|
72,461
|
|
|
36,986
|
|
|||
Premises and equipment
|
|
26,940
|
|
|
24,384
|
|
|
21,700
|
|
|||
Net occupancy
|
|
18,346
|
|
|
19,563
|
|
|
16,048
|
|
|||
Business development and travel
|
|
14,071
|
|
|
16,997
|
|
|
15,354
|
|
|||
FDIC and state assessments
|
|
5,234
|
|
|
5,166
|
|
|
3,979
|
|
|||
Other
|
|
40,703
|
|
|
47,520
|
|
|
33,536
|
|
|||
Total noninterest expense
|
|
399,585
|
|
|
460,752
|
|
|
365,664
|
|
|||
Income before income tax expense
|
|
183,006
|
|
|
368,877
|
|
|
399,047
|
|
|||
Income tax expense
|
|
49,357
|
|
|
94,061
|
|
|
107,435
|
|
|||
Net income before noncontrolling interests and dividends
|
|
133,649
|
|
|
274,816
|
|
|
291,612
|
|
|||
Net loss (income) attributable to noncontrolling interests
|
|
1,973
|
|
|
(11,960
|
)
|
|
(2,880
|
)
|
|||
Preferred stock dividends
|
|
(3,369
|
)
|
|
—
|
|
|
—
|
|
|||
Net income available to common stockholders
|
|
$
|
132,253
|
|
|
$
|
262,856
|
|
|
$
|
288,732
|
|
Earnings per common share—basic
|
|
$
|
2.56
|
|
|
$
|
5.10
|
|
|
$
|
5.49
|
|
Earnings per common share—diluted
|
|
2.55
|
|
|
5.06
|
|
|
5.44
|
|
|||
Weighted average common shares outstanding—basic
|
|
51,565,499
|
|
|
51,587,074
|
|
|
52,586,950
|
|
|||
Weighted average common shares outstanding—diluted
|
|
51,944,091
|
|
|
51,959,250
|
|
|
53,109,173
|
|
(Dollars in thousands, except par value and share data)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Assets:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
9,561,448
|
|
|
$
|
6,781,783
|
|
|
$
|
7,066,883
|
|
Available-for-sale securities, at fair value (cost $12,044,717, $13,894,348 and $6,776,896, respectively)
|
|
12,648,064
|
|
|
14,014,919
|
|
|
6,755,094
|
|
|||
Held-to-maturity securities, at cost and net of allowance for credit losses (fair value $14,131,154, $14,115,272 and $14,996,508, respectively)
|
|
13,574,289
|
|
|
13,842,946
|
|
|
15,055,255
|
|
|||
Non-marketable and other equity securities
|
|
1,200,595
|
|
|
1,213,829
|
|
|
974,979
|
|
|||
Investment securities
|
|
27,422,948
|
|
|
29,071,694
|
|
|
22,785,328
|
|
|||
Loans, amortized cost
|
|
35,968,085
|
|
|
33,164,636
|
|
|
28,850,445
|
|
|||
Allowance for credit losses: loans
|
|
(548,963
|
)
|
|
(304,924
|
)
|
|
(300,151
|
)
|
|||
Net loans
|
|
35,419,122
|
|
|
32,859,712
|
|
|
28,550,294
|
|
|||
Premises and equipment, net of accumulated depreciation and amortization
|
|
154,780
|
|
|
161,876
|
|
|
139,003
|
|
|||
Goodwill
|
|
137,823
|
|
|
137,823
|
|
|
135,190
|
|
|||
Other intangible assets, net
|
|
48,072
|
|
|
49,417
|
|
|
58,029
|
|
|||
Lease right-of-use assets
|
|
206,392
|
|
|
197,365
|
|
|
164,659
|
|
|||
Accrued interest receivable and other assets
|
|
2,059,055
|
|
|
1,745,233
|
|
|
1,260,899
|
|
|||
Total assets
|
|
$
|
75,009,640
|
|
|
$
|
71,004,903
|
|
|
$
|
60,160,285
|
|
Liabilities and total equity:
|
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
||||||
Noninterest-bearing demand deposits
|
|
$
|
42,902,200
|
|
|
$
|
40,841,570
|
|
|
$
|
39,278,712
|
|
Interest-bearing deposits
|
|
19,009,757
|
|
|
20,916,237
|
|
|
13,048,485
|
|
|||
Total deposits
|
|
61,911,957
|
|
|
61,757,807
|
|
|
52,327,197
|
|
|||
Short-term borrowings
|
|
3,138,162
|
|
|
17,430
|
|
|
14,455
|
|
|||
Lease liabilities
|
|
227,271
|
|
|
218,847
|
|
|
205,167
|
|
|||
Other liabilities
|
|
2,200,953
|
|
|
2,041,752
|
|
|
1,432,928
|
|
|||
Long-term debt
|
|
348,076
|
|
|
347,987
|
|
|
696,715
|
|
|||
Total liabilities
|
|
67,826,419
|
|
|
64,383,823
|
|
|
54,676,462
|
|
|||
SVBFG stockholders’ equity:
|
|
|
|
|
|
|
||||||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; 350,000 shares, 350,000 shares and no shares issued and outstanding, respectively
|
|
340,138
|
|
|
340,138
|
|
|
—
|
|
|||
Common stock, $0.001 par value, 150,000,000 shares authorized; 51,490,342 shares, 51,655,607 shares and 52,322,105 shares issued and outstanding, respectively
|
|
52
|
|
|
52
|
|
|
52
|
|
|||
Additional paid-in capital
|
|
1,489,240
|
|
|
1,470,071
|
|
|
1,394,130
|
|
|||
Retained earnings
|
|
4,612,785
|
|
|
4,575,601
|
|
|
3,963,965
|
|
|||
Accumulated other comprehensive income (loss)
|
|
592,534
|
|
|
84,445
|
|
|
(15,374
|
)
|
|||
Total SVBFG stockholders’ equity
|
|
7,034,749
|
|
|
6,470,307
|
|
|
5,342,773
|
|
|||
Noncontrolling interests
|
|
148,472
|
|
|
150,773
|
|
|
141,050
|
|
|||
Total equity
|
|
7,183,221
|
|
|
6,621,080
|
|
|
5,483,823
|
|
|||
Total liabilities and total equity
|
|
$
|
75,009,640
|
|
|
$
|
71,004,903
|
|
|
$
|
60,160,285
|
|
|
|
Three months ended
|
|||||||||||||||||||||||||||||||
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|||||||||||||||||||||||||||
(Dollars in thousands, except yield/rate and ratios)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Rate |
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Rate |
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Federal reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1)
|
|
$
|
7,308,705
|
|
|
$
|
17,624
|
|
|
0.97
|
%
|
|
$
|
6,631,397
|
|
|
$
|
21,993
|
|
|
1.32
|
%
|
|
$
|
4,460,378
|
|
|
$
|
19,216
|
|
|
1.75
|
%
|
Investment securities: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
|
13,565,908
|
|
|
77,024
|
|
|
2.28
|
|
|
12,640,467
|
|
|
74,759
|
|
|
2.35
|
|
|
6,870,168
|
|
|
35,422
|
|
|
2.09
|
|
||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
|
11,675,421
|
|
|
77,361
|
|
|
2.66
|
|
|
12,256,986
|
|
|
83,324
|
|
|
2.70
|
|
|
13,651,311
|
|
|
91,295
|
|
|
2.71
|
|
||||||
Non-taxable (3)
|
|
1,900,640
|
|
|
16,233
|
|
|
3.44
|
|
|
1,766,043
|
|
|
15,141
|
|
|
3.40
|
|
|
1,572,647
|
|
|
13,844
|
|
|
3.57
|
|
||||||
Total loans, amortized cost (4) (5)
|
|
33,660,728
|
|
|
382,569
|
|
|
4.57
|
|
|
32,008,949
|
|
|
396,698
|
|
|
4.92
|
|
|
28,388,072
|
|
|
394,144
|
|
|
5.63
|
|
||||||
Total interest-earning assets
|
|
68,111,402
|
|
|
570,811
|
|
|
3.37
|
|
|
65,303,842
|
|
|
591,915
|
|
|
3.59
|
|
|
54,942,576
|
|
|
553,921
|
|
|
4.09
|
|
||||||
Cash and due from banks
|
|
797,462
|
|
|
|
|
|
|
706,943
|
|
|
|
|
|
|
527,109
|
|
|
|
|
|
||||||||||||
Allowance for credit losses: loans
|
|
(327,812
|
)
|
|
|
|
|
|
(317,621
|
)
|
|
|
|
|
|
(288,927
|
)
|
|
|
|
|
||||||||||||
Other assets (6)
|
|
3,826,116
|
|
|
|
|
|
|
3,445,826
|
|
|
|
|
|
|
2,347,679
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
72,407,168
|
|
|
|
|
|
|
$
|
69,138,990
|
|
|
|
|
|
|
$
|
57,528,437
|
|
|
|
|
|
|||||||||
Funding sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest bearing checking and savings accounts
|
|
$
|
546,428
|
|
|
$
|
108
|
|
|
0.08
|
%
|
|
$
|
519,209
|
|
|
$
|
107
|
|
|
0.08
|
%
|
|
$
|
545,238
|
|
|
$
|
114
|
|
|
0.08
|
%
|
Money market deposits
|
|
17,613,578
|
|
|
33,013
|
|
|
0.75
|
|
|
17,223,290
|
|
|
40,651
|
|
|
0.94
|
|
|
9,073,622
|
|
|
21,831
|
|
|
0.98
|
|
||||||
Money market deposits in foreign offices
|
|
266,045
|
|
|
24
|
|
|
0.04
|
|
|
231,874
|
|
|
21
|
|
|
0.04
|
|
|
148,342
|
|
|
16
|
|
|
0.04
|
|
||||||
Time deposits
|
|
163,343
|
|
|
429
|
|
|
1.06
|
|
|
161,871
|
|
|
481
|
|
|
1.18
|
|
|
50,691
|
|
|
30
|
|
|
0.24
|
|
||||||
Sweep deposits in foreign offices
|
|
1,882,853
|
|
|
3,824
|
|
|
0.82
|
|
|
2,413,564
|
|
|
6,249
|
|
|
1.03
|
|
|
1,673,629
|
|
|
5,916
|
|
|
1.43
|
|
||||||
Total interest-bearing deposits
|
|
20,472,247
|
|
|
37,398
|
|
|
0.73
|
|
|
20,549,808
|
|
|
47,509
|
|
|
0.92
|
|
|
11,491,522
|
|
|
27,907
|
|
|
0.98
|
|
||||||
Short-term borrowings
|
|
969,896
|
|
|
2,716
|
|
|
1.13
|
|
|
18,770
|
|
|
73
|
|
|
1.54
|
|
|
353,389
|
|
|
2,205
|
|
|
2.53
|
|
||||||
3.50% Senior Notes
|
|
348,018
|
|
|
3,151
|
|
|
3.64
|
|
|
347,929
|
|
|
3,151
|
|
|
3.59
|
|
|
347,669
|
|
|
3,148
|
|
|
3.67
|
|
||||||
5.375% Senior Notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
303,807
|
|
|
4,334
|
|
|
5.66
|
|
|
348,882
|
|
|
4,868
|
|
|
5.66
|
|
||||||
Total interest-bearing liabilities
|
|
21,790,161
|
|
|
43,265
|
|
|
0.80
|
|
|
21,220,314
|
|
|
55,067
|
|
|
1.03
|
|
|
12,541,462
|
|
|
38,128
|
|
|
1.23
|
|
||||||
Portion of noninterest-bearing funding sources
|
|
46,321,241
|
|
|
|
|
|
|
44,083,528
|
|
|
|
|
|
|
42,401,114
|
|
|
|
|
|
||||||||||||
Total funding sources
|
|
68,111,402
|
|
|
43,265
|
|
|
0.25
|
|
|
65,303,842
|
|
|
55,067
|
|
|
0.33
|
|
|
54,942,576
|
|
|
38,128
|
|
|
0.28
|
|
||||||
Noninterest-bearing funding sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
|
41,335,984
|
|
|
|
|
|
|
39,627,690
|
|
|
|
|
|
|
38,222,687
|
|
|
|
|
|
||||||||||||
Other liabilities
|
|
2,277,031
|
|
|
|
|
|
|
1,948,720
|
|
|
|
|
|
|
1,330,037
|
|
|
|
|
|
||||||||||||
Preferred stock
|
|
340,169
|
|
|
|
|
|
|
70,427
|
|
|
|
|
|
|
—
|
|
|
|
|
|
||||||||||||
SVBFG common stockholders’ equity
|
|
6,512,946
|
|
|
|
|
|
|
6,123,601
|
|
|
|
|
|
|
5,283,808
|
|
|
|
|
|
||||||||||||
Noncontrolling interests
|
|
150,877
|
|
|
|
|
|
|
148,238
|
|
|
|
|
|
|
150,443
|
|
|
|
|
|
||||||||||||
Portion used to fund interest-earning assets
|
|
(46,321,241
|
)
|
|
|
|
|
|
(44,083,528
|
)
|
|
|
|
|
|
(42,401,114
|
)
|
|
|
|
|
||||||||||||
Total liabilities and total equity
|
|
$
|
72,407,168
|
|
|
|
|
|
|
$
|
69,138,990
|
|
|
|
|
|
|
$
|
57,528,437
|
|
|
|
|
|
|||||||||
Net interest income and margin
|
|
|
|
$
|
527,546
|
|
|
3.12
|
%
|
|
|
|
$
|
536,848
|
|
|
3.26
|
%
|
|
|
|
$
|
515,793
|
|
|
3.81
|
%
|
||||||
Total deposits
|
|
$
|
61,808,231
|
|
|
|
|
|
|
$
|
60,177,498
|
|
|
|
|
|
|
$
|
49,714,209
|
|
|
|
|
|
|||||||||
Average SVBFG common stockholders’ equity as a percentage of average assets
|
|
|
|
|
|
8.99
|
%
|
|
|
|
|
|
8.86
|
%
|
|
|
|
|
|
9.18
|
%
|
||||||||||||
Reconciliation to reported net interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjustments for taxable equivalent basis
|
|
|
|
(3,409
|
)
|
|
|
|
|
|
(3,180
|
)
|
|
|
|
|
|
(2,907
|
)
|
|
|
||||||||||||
Net interest income, as reported
|
|
|
|
$
|
524,137
|
|
|
|
|
|
|
$
|
533,668
|
|
|
|
|
|
|
$
|
512,886
|
|
|
|
|
(1)
|
Includes average interest-earning deposits in other financial institutions of $0.9 billion, $1.0 billion and $0.8 billion; and $5.5 billion, $4.6 billion and $2.8 billion deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate, for the quarters ended March 31, 2020, December 31, 2019 and March 31, 2019, respectively.
|
(2)
|
Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income or loss.
|
(3)
|
Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 21.0 percent for all periods presented.
|
(4)
|
Nonaccrual loans are reflected in the average balances of loans.
|
(5)
|
Interest income includes loan fees of $36.7 million, $47.4 million and $36.7 million for the quarters ended March 31, 2020, December 31, 2019 and March 31, 2019, respectively.
|
(6)
|
Average investment securities of $1.6 billion, $1.3 billion and $0.9 billion for the quarters ended March 31, 2020, December 31, 2019 and March 31, 2019, respectively, were classified as other assets as they are noninterest-earning assets. These investments consist primarily of non-marketable and other equity securities.
|
|
|
Three months ended
|
|||||||
(Shares in thousands)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
|||
Weighted average common shares outstanding—basic
|
|
51,565
|
|
|
51,587
|
|
|
52,587
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|||
Stock options and employee stock purchase plan
|
|
217
|
|
|
203
|
|
|
297
|
|
Restricted stock units
|
|
162
|
|
|
169
|
|
|
225
|
|
Total effect of dilutive securities
|
|
379
|
|
|
372
|
|
|
522
|
|
Weighted average common shares outstanding—diluted
|
|
51,944
|
|
|
51,959
|
|
|
53,109
|
|
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
|||
SVB Financial:
|
|
|
|
|
|
|
|||
CET 1 risk-based capital ratio (2)
|
|
12.36
|
%
|
|
12.58
|
%
|
|
12.89
|
%
|
Tier 1 risk-based capital ratio (2)
|
|
13.37
|
|
|
13.43
|
|
|
13.04
|
|
Total risk-based capital ratio (2)
|
|
14.44
|
|
|
14.23
|
|
|
13.94
|
|
Tier 1 leverage ratio (2)
|
|
9.01
|
|
|
9.06
|
|
|
9.10
|
|
Tangible common equity to tangible assets ratio (3)
|
|
8.70
|
|
|
8.39
|
|
|
8.59
|
|
Tangible common equity to risk-weighted assets ratio (3)
|
|
13.41
|
|
|
12.76
|
|
|
12.86
|
|
Silicon Valley Bank:
|
|
|
|
|
|
|
|||
CET 1 risk-based capital ratio (2)
|
|
10.92
|
%
|
|
11.12
|
%
|
|
12.35
|
%
|
Tier 1 risk-based capital ratio (2)
|
|
10.92
|
|
|
11.12
|
|
|
12.35
|
|
Total risk-based capital ratio (2)
|
|
12.03
|
|
|
11.96
|
|
|
13.29
|
|
Tier 1 leverage ratio (2)
|
|
7.21
|
|
|
7.30
|
|
|
8.38
|
|
Tangible common equity to tangible assets ratio (3)
|
|
7.63
|
|
|
7.24
|
|
|
7.99
|
|
Tangible common equity to risk-weighted assets ratio (3)
|
|
12.01
|
|
|
11.31
|
|
|
12.32
|
|
|
(1)
|
Regulatory capital ratios as of March 31, 2020 are preliminary.
|
(2)
|
Capital ratios include regulatory capital phase-in of the allowance for credit losses under the 2020 CECL Interim Final Rule ("IFR") for periods beginning March 31, 2020.
|
(3)
|
These are non-GAAP measures. A reconciliation of non-GAAP measures to GAAP is provided at the end of this release under the section “Use of Non-GAAP Financial Measures.”
|
(Dollars in thousands, except ratios and client data)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Loans (individually or in the aggregate) to any single client, equal to or greater than $20 million
|
|
|
|
|
|
|
||||||
Private equity/venture capital
|
|
$
|
12,485,902
|
|
|
$
|
13,044,354
|
|
|
$
|
10,376,514
|
|
Investor dependent
|
|
|
|
|
|
|
||||||
Early stage
|
|
52,648
|
|
|
109,797
|
|
|
86,319
|
|
|||
Mid stage
|
|
59,807
|
|
|
48,896
|
|
|
173,421
|
|
|||
Later stage
|
|
407,974
|
|
|
525,015
|
|
|
504,586
|
|
|||
Total investor dependent
|
|
520,429
|
|
|
683,708
|
|
|
764,326
|
|
|||
Cash flow dependent
|
|
|
|
|
|
|
||||||
Sponsor led buyout
|
|
924,013
|
|
|
1,526,833
|
|
|
1,426,335
|
|
|||
Other
|
|
1,483,666
|
|
|
1,487,164
|
|
|
1,187,398
|
|
|||
Total cash flow dependent
|
|
2,407,679
|
|
|
3,013,997
|
|
|
2,613,733
|
|
|||
Private Bank
|
|
107,945
|
|
|
146,060
|
|
|
155,771
|
|
|||
Balance sheet dependent
|
|
519,802
|
|
|
360,829
|
|
|
595,838
|
|
|||
Premium wine
|
|
164,612
|
|
|
290,657
|
|
|
221,770
|
|
|||
Other
|
|
162,402
|
|
|
216,155
|
|
|
22,002
|
|
|||
Total loans individually equal to or greater than $20 million
|
|
$
|
16,368,771
|
|
|
$
|
17,755,760
|
|
|
$
|
14,749,954
|
|
Loans (individually or in the aggregate) to any single client, less than $20 million
|
|
|
|
|
|
|
||||||
Private equity/venture capital
|
|
$
|
6,382,973
|
|
|
$
|
4,652,440
|
|
|
$
|
3,948,849
|
|
Investor dependent
|
|
|
|
|
|
|
||||||
Early stage
|
|
1,753,363
|
|
|
1,514,424
|
|
|
1,563,012
|
|
|||
Mid stage
|
|
1,339,402
|
|
|
998,502
|
|
|
1,100,421
|
|
|||
Later stage
|
|
1,623,516
|
|
|
1,138,561
|
|
|
1,137,219
|
|
|||
Total investor dependent
|
|
4,716,281
|
|
|
3,651,487
|
|
|
3,800,652
|
|
|||
Cash flow dependent
|
|
|
|
|
|
|
||||||
Sponsor led buyout
|
|
1,196,994
|
|
|
658,664
|
|
|
779,865
|
|
|||
Other
|
|
1,272,629
|
|
|
751,577
|
|
|
715,968
|
|
|||
Total cash flow dependent
|
|
2,469,623
|
|
|
1,410,241
|
|
|
1,495,833
|
|
|||
Private Bank
|
|
3,561,350
|
|
|
3,346,209
|
|
|
2,980,821
|
|
|||
Balance sheet dependent
|
|
1,331,139
|
|
|
925,324
|
|
|
805,733
|
|
|||
Premium wine
|
|
892,315
|
|
|
771,607
|
|
|
793,075
|
|
|||
Other
|
|
245,633
|
|
|
651,568
|
|
|
275,528
|
|
|||
Total loans individually less than $20 million
|
|
$
|
19,599,314
|
|
|
$
|
15,408,876
|
|
|
$
|
14,100,491
|
|
Total loans, amortized cost
|
|
$
|
35,968,085
|
|
|
$
|
33,164,636
|
|
|
$
|
28,850,445
|
|
Loans individually equal to or greater than $20 million as a percentage of total loans
|
|
45.5
|
%
|
|
53.5
|
%
|
|
51.1
|
%
|
|||
Total clients with loans individually equal to or greater than $20 million
|
|
455
|
|
|
397
|
|
|
356
|
|
|||
Loans individually equal to or greater than $20 million on nonaccrual status
|
|
$
|
—
|
|
|
$
|
37,294
|
|
|
$
|
76,385
|
|
(Dollars in thousands, except ratios)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Nonaccrual, past due and restructured loans:
|
|
|
|
|
|
|
||||||
Nonaccrual loans
|
|
$
|
50,607
|
|
|
$
|
102,669
|
|
|
$
|
133,623
|
|
Loans past due 90 days or more still accruing interest
|
|
4,918
|
|
|
3,515
|
|
|
2,148
|
|
|||
Total nonperforming loans (1)
|
|
55,525
|
|
|
106,184
|
|
|
135,771
|
|
|||
OREO and other foreclosed assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total nonperforming assets
|
|
$
|
55,525
|
|
|
$
|
106,184
|
|
|
$
|
135,771
|
|
Nonperforming loans as a percentage of total loans
|
|
0.15
|
%
|
|
0.32
|
%
|
|
0.47
|
%
|
|||
Nonperforming assets as a percentage of total assets
|
|
0.07
|
|
|
0.15
|
|
|
0.23
|
|
|||
Allowance for credit losses for loans
|
|
$
|
548,963
|
|
|
$
|
304,924
|
|
|
$
|
300,151
|
|
As a percentage of total loans
|
|
1.53
|
%
|
|
0.91
|
%
|
|
1.03
|
%
|
|||
As a percentage of total nonperforming loans
|
|
988.68
|
|
|
287.17
|
|
|
221.07
|
|
|||
Allowance for credit losses for nonaccrual loans
|
|
$
|
34,876
|
|
|
$
|
44,859
|
|
|
$
|
61,225
|
|
As a percentage of total loans
|
|
0.10
|
%
|
|
0.13
|
%
|
|
0.21
|
%
|
|||
As a percentage of total nonperforming loans
|
|
62.81
|
|
|
42.25
|
|
|
45.09
|
|
|||
Allowance for credit losses for total performing loans
|
|
$
|
514,087
|
|
|
$
|
260,065
|
|
|
$
|
238,926
|
|
As a percentage of total loans
|
|
1.43
|
%
|
|
0.78
|
%
|
|
0.82
|
%
|
|||
As a percentage of total performing loans
|
|
1.43
|
|
|
0.78
|
|
|
0.83
|
|
|||
Total loans (1)
|
|
$
|
35,968,085
|
|
|
$
|
33,327,704
|
|
|
$
|
29,020,519
|
|
Total performing loans
|
|
35,912,560
|
|
|
33,221,520
|
|
|
28,884,748
|
|
|||
Allowance for credit losses for unfunded credit commitments (2)
|
|
84,690
|
|
|
67,656
|
|
|
57,970
|
|
|||
As a percentage of total unfunded credit commitments
|
|
0.35
|
%
|
|
0.28
|
%
|
|
0.29
|
%
|
|||
Total unfunded credit commitments (3)
|
|
$
|
24,240,557
|
|
|
$
|
24,521,920
|
|
|
$
|
20,267,529
|
|
|
(1)
|
For the quarter ended March 31, 2020, loan amounts are disclosed, and ratios are calculated, using the amortized cost basis as a result of the adoption of CECL. Prior period loan amounts are disclosed, and ratios calculated, using the gross basis in accordance with previous methodology.
|
(2)
|
The “allowance for credit losses for unfunded credit commitments” is included as a component of “other liabilities.”
|
(3)
|
Includes unfunded loan commitments and letters of credit.
|
|
|
Three months ended
|
||||||||||
(Dollars in millions)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Sweep money market funds
|
|
$
|
43,045
|
|
|
$
|
42,526
|
|
|
$
|
39,805
|
|
Client investment assets under management (2)
|
|
50,746
|
|
|
44,641
|
|
|
39,247
|
|
|||
Repurchase agreements
|
|
9,799
|
|
|
9,476
|
|
|
8,362
|
|
|||
Total average client investment funds
|
|
$
|
103,590
|
|
|
$
|
96,643
|
|
|
$
|
87,414
|
|
|
|
Period-end balances at
|
||||||||||||||||||
(Dollars in millions)
|
|
March 31,
2020 |
|
December 31,
2019 |
|
September 30,
2019 |
|
June 30,
2019 |
|
March 31,
2019 |
||||||||||
Sweep money market funds
|
|
$
|
44,833
|
|
|
$
|
43,226
|
|
|
$
|
42,022
|
|
|
$
|
40,008
|
|
|
$
|
40,686
|
|
Client investment assets under management (2)
|
|
51,020
|
|
|
46,904
|
|
|
44,886
|
|
|
41,614
|
|
|
39,376
|
|
|||||
Repurchase agreements
|
|
11,099
|
|
|
9,062
|
|
|
9,564
|
|
|
9,873
|
|
|
8,120
|
|
|||||
Total period-end client investment funds
|
|
$
|
106,952
|
|
|
$
|
99,192
|
|
|
$
|
96,472
|
|
|
$
|
91,495
|
|
|
$
|
88,182
|
|
|
(1)
|
Off-Balance sheet client investment funds are maintained at third-party financial institutions.
|
(2)
|
These funds represent investments in third-party money market mutual funds and fixed income securities managed by SVB Asset Management.
|
•
|
Income and expense attributable to noncontrolling interests — As part of our funds management business, we recognize the entire income or loss from certain funds where we own less than 100 percent. We are required under GAAP to consolidate 100 percent of the results of certain SVB Capital funds. The relevant amounts attributable to investors other than us are reflected under “Net Income Attributable to Noncontrolling Interests.” Our net income available to common stockholders/certain financial line items include only the portion of income or loss related to our ownership interest.
|
•
|
Non-GAAP core fee income plus investment banking revenue and commissions — This measure represents noninterest income but excludes certain line items where performance is typically subject to market or other conditions beyond our control. We do not provide our outlook for the expected full year results for these excluded items, which include net gains or losses on investment securities, net gains or losses on equity warrant assets and other noninterest income items.
|
•
|
Non-GAAP core fee income — This measure represents noninterest income but excludes certain line items where performance is typically subject to market or other conditions beyond our control, as well as our investment banking revenue and commissions, and includes client investment fees, foreign exchange fees, credit card fees, deposit service charges, lending related fees and letters of credit and standby letters of credit fees. We do not provide our outlook for the expected full year results for these excluded items, which include net gains or losses on investment securities, net gains or losses on equity warrant assets, investment banking revenue, commissions and other noninterest income items.
|
•
|
Non-GAAP core operating efficiency ratio — This ratio excludes income and expenses related to SVB Leerink and certain financial items where performance is typically subject to market or other conditions beyond our control. It is calculated by dividing noninterest expense after adjusting for noninterest expense attributable to SVB Leerink by total revenue after adjusting for net interest income attributable to SVB Leerink, net gains or losses on investment securities and equity warrant assets, investment banking revenue and commissions. Additionally, noninterest expense and total revenue are adjusted for income or losses and expenses attributable to noncontrolling interests and adjustments to net interest income for a taxable equivalent basis. This ratio is used by management to evaluate the operating efficiency of our core banking business.
|
•
|
Tangible common equity to tangible assets ratio; tangible common equity to risk-weighted assets ratio — These ratios are not required by GAAP or applicable bank regulatory requirements and are used by management to evaluate the adequacy of our capital levels. Risk-based capital guidelines require a minimum level of capital as a percentage of risk-weighted assets. Risk-weighted assets are calculated by assigning assets and off-balance sheet items to broad risk categories. Our ratios are calculated by dividing total SVBFG stockholders’ equity, by total assets or total risk-weighted assets, as applicable, after reducing amounts by acquired intangibles, if any.
|
|
|
Three months ended
|
||||||||||||||||||
Non-GAAP core fee income plus investment banking revenue and commissions and non-GAAP core fee income (Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
September 30, 2019
|
|
June 30, 2019
|
|
March 31, 2019
|
||||||||||
GAAP noninterest income
|
|
$
|
301,934
|
|
|
$
|
313,344
|
|
|
$
|
294,009
|
|
|
$
|
333,750
|
|
|
$
|
280,376
|
|
Less: gains on investment securities, net
|
|
46,055
|
|
|
28,095
|
|
|
29,849
|
|
|
47,698
|
|
|
29,028
|
|
|||||
Less: net gains on equity warrant assets
|
|
13,395
|
|
|
30,865
|
|
|
37,561
|
|
|
48,347
|
|
|
21,305
|
|
|||||
Less: other noninterest income
|
|
11,137
|
|
|
12,597
|
|
|
13,631
|
|
|
17,245
|
|
|
11,897
|
|
|||||
Non-GAAP core fee income plus investment banking revenue and commissions
|
|
$
|
231,347
|
|
|
$
|
241,787
|
|
|
$
|
212,968
|
|
|
$
|
220,460
|
|
|
$
|
218,146
|
|
Less: investment banking revenue
|
|
46,867
|
|
|
58,172
|
|
|
38,516
|
|
|
48,694
|
|
|
49,795
|
|
|||||
Less: commissions
|
|
16,022
|
|
|
15,534
|
|
|
12,275
|
|
|
14,429
|
|
|
14,108
|
|
|||||
Non-GAAP core fee income
|
|
$
|
168,458
|
|
|
$
|
168,081
|
|
|
$
|
162,177
|
|
|
$
|
157,337
|
|
|
$
|
154,243
|
|
|
|
Three months ended
|
||||||||||||||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests (Dollars in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
|
September 30, 2019
|
|
June 30, 2019
|
|
March 31, 2019
|
|||||||||||
GAAP net gains on investment securities
|
|
$
|
46,055
|
|
|
$
|
28,095
|
|
|
$
|
29,849
|
|
|
$
|
47,698
|
|
|
$
|
29,028
|
|
Less: (loss) income attributable to noncontrolling interests, including carried interest allocation
|
|
(1,535
|
)
|
|
11,827
|
|
|
14,640
|
|
|
18,598
|
|
|
3,436
|
|
|||||
Non-GAAP net gains on investment securities, net of noncontrolling interests
|
|
$
|
47,590
|
|
|
$
|
16,268
|
|
|
$
|
15,209
|
|
|
$
|
29,100
|
|
|
$
|
25,592
|
|
|
|
Three months ended
|
||||||||||||||||||
Non-GAAP core operating efficiency ratio (Dollars in thousands, except ratios)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
September 30, 2019
|
|
June 30, 2019
|
|
March 31, 2019
|
||||||||||
GAAP noninterest expense
|
|
$
|
399,585
|
|
|
$
|
460,752
|
|
|
$
|
391,324
|
|
|
$
|
383,522
|
|
|
$
|
365,664
|
|
Less: expense attributable to noncontrolling interests
|
|
140
|
|
|
143
|
|
|
145
|
|
|
168
|
|
|
379
|
|
|||||
Non-GAAP noninterest expense, net of noncontrolling interests
|
|
399,445
|
|
|
460,609
|
|
|
391,179
|
|
|
383,354
|
|
|
365,285
|
|
|||||
Less: expense attributable to SVB Leerink
|
|
62,037
|
|
|
75,002
|
|
|
55,200
|
|
|
61,935
|
|
|
60,540
|
|
|||||
Non-GAAP noninterest expense, net of noncontrolling interests and SVB Leerink
|
|
$
|
337,408
|
|
|
$
|
385,607
|
|
|
$
|
335,979
|
|
|
$
|
321,419
|
|
|
$
|
304,745
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net interest income
|
|
$
|
524,137
|
|
|
$
|
533,668
|
|
|
$
|
520,644
|
|
|
$
|
529,403
|
|
|
$
|
512,886
|
|
Adjustments for taxable equivalent basis
|
|
3,409
|
|
|
3,180
|
|
|
2,957
|
|
|
2,905
|
|
|
2,907
|
|
|||||
Non-GAAP taxable equivalent net interest income
|
|
527,546
|
|
|
536,848
|
|
|
523,601
|
|
|
532,308
|
|
|
515,793
|
|
|||||
Less: income attributable to noncontrolling interests
|
|
21
|
|
|
31
|
|
|
14
|
|
|
16
|
|
|
11
|
|
|||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests
|
|
527,525
|
|
|
536,817
|
|
|
523,587
|
|
|
532,292
|
|
|
515,782
|
|
|||||
Less: net interest income attributable to SVB Leerink
|
|
201
|
|
|
291
|
|
|
277
|
|
|
242
|
|
|
442
|
|
|||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests and SVB Leerink
|
|
$
|
527,324
|
|
|
$
|
536,526
|
|
|
$
|
523,310
|
|
|
$
|
532,050
|
|
|
$
|
515,340
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP noninterest income
|
|
$
|
301,934
|
|
|
$
|
313,344
|
|
|
$
|
294,009
|
|
|
$
|
333,750
|
|
|
$
|
280,376
|
|
Less: (loss) income attributable to noncontrolling interests, including carried interest allocation
|
|
(1,854
|
)
|
|
12,072
|
|
|
14,568
|
|
|
18,736
|
|
|
3,248
|
|
|||||
Non-GAAP noninterest income, net of noncontrolling interests
|
|
303,788
|
|
|
301,272
|
|
|
279,441
|
|
|
315,014
|
|
|
277,128
|
|
|||||
Less: Non-GAAP net gains on investment securities, net of noncontrolling interests
|
|
47,590
|
|
|
16,268
|
|
|
15,209
|
|
|
29,100
|
|
|
25,592
|
|
|||||
Less: net gains on equity warrant assets
|
|
13,395
|
|
|
30,865
|
|
|
37,561
|
|
|
48,347
|
|
|
21,305
|
|
|||||
Less: investment banking revenue
|
|
46,867
|
|
|
58,172
|
|
|
38,516
|
|
|
48,694
|
|
|
49,795
|
|
|||||
Less: commissions
|
|
16,022
|
|
|
15,534
|
|
|
12,275
|
|
|
14,429
|
|
|
14,108
|
|
|||||
Non-GAAP noninterest income, net of noncontrolling interests and net of net gains on investment securities, net gains on equity warrant assets, investment banking revenue and commissions
|
|
$
|
179,914
|
|
|
$
|
180,433
|
|
|
$
|
175,880
|
|
|
$
|
174,444
|
|
|
$
|
166,328
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP total revenue
|
|
$
|
826,071
|
|
|
$
|
847,012
|
|
|
$
|
814,653
|
|
|
$
|
863,153
|
|
|
$
|
793,262
|
|
Non-GAAP taxable equivalent revenue, net of noncontrolling interests, SVB Leerink, net of net gains on investment securities, net gains on equity warrant assets, investment banking revenue and commissions
|
|
$
|
707,238
|
|
|
$
|
716,959
|
|
|
$
|
699,190
|
|
|
$
|
706,494
|
|
|
$
|
681,668
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP operating efficiency ratio
|
|
48.37
|
%
|
|
54.40
|
%
|
|
48.04
|
%
|
|
44.43
|
%
|
|
46.10
|
%
|
|||||
Non-GAAP core operating efficiency ratio
|
|
47.71
|
|
|
53.78
|
|
|
48.05
|
|
|
45.49
|
|
|
44.71
|
|
|
|
Period-end balances at
|
||||||||||||||||||
Non-GAAP non-marketable and other equity securities, net of noncontrolling interests (Dollars in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
September 30, 2019
|
|
June 30, 2019
|
|
March 31, 2019
|
||||||||||
GAAP non-marketable and other equity securities
|
|
$
|
1,200,595
|
|
|
$
|
1,213,829
|
|
|
$
|
1,150,094
|
|
|
$
|
1,079,749
|
|
|
$
|
974,979
|
|
Less: amounts attributable to noncontrolling interests
|
|
144,279
|
|
|
148,806
|
|
|
142,182
|
|
|
148,270
|
|
|
134,130
|
|
|||||
Non-GAAP non-marketable and other equity securities, net of noncontrolling interests
|
|
$
|
1,056,316
|
|
|
$
|
1,065,023
|
|
|
$
|
1,007,912
|
|
|
$
|
931,479
|
|
|
$
|
840,849
|
|
|
|
Period-end balances at
|
||||||||||||||||||
SVB Financial Group tangible common equity, tangible assets and risk-weighted assets (Dollars in thousands, except ratios)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
September 30, 2019
|
|
June 30, 2019
|
|
March 31, 2019
|
||||||||||
GAAP SVBFG stockholders’ equity
|
|
$
|
7,034,749
|
|
|
$
|
6,470,307
|
|
|
$
|
5,890,680
|
|
|
$
|
5,554,043
|
|
|
$
|
5,342,773
|
|
Less: preferred stock
|
|
340,138
|
|
|
340,138
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Less: intangible assets
|
|
185,895
|
|
|
187,240
|
|
|
190,111
|
|
|
192,981
|
|
|
193,219
|
|
|||||
Tangible common equity
|
|
$
|
6,508,716
|
|
|
$
|
5,942,929
|
|
|
$
|
5,700,569
|
|
|
$
|
5,361,062
|
|
|
$
|
5,149,554
|
|
GAAP total assets
|
|
$
|
75,009,640
|
|
|
$
|
71,004,903
|
|
|
$
|
68,231,233
|
|
|
$
|
63,773,739
|
|
|
$
|
60,160,285
|
|
Less: intangible assets
|
|
185,895
|
|
|
187,240
|
|
|
190,111
|
|
|
192,981
|
|
|
193,219
|
|
|||||
Tangible assets
|
|
$
|
74,823,745
|
|
|
$
|
70,817,663
|
|
|
$
|
68,041,122
|
|
|
$
|
63,580,758
|
|
|
$
|
59,967,066
|
|
Risk-weighted assets
|
|
$
|
48,526,008
|
|
|
$
|
46,577,485
|
|
|
$
|
43,712,495
|
|
|
$
|
40,843,334
|
|
|
$
|
40,048,892
|
|
Tangible common equity to tangible assets
|
|
8.70
|
%
|
|
8.39
|
%
|
|
8.38
|
%
|
|
8.43
|
%
|
|
8.59
|
%
|
|||||
Tangible common equity to risk-weighted assets
|
|
13.41
|
|
|
12.76
|
|
|
13.04
|
|
|
13.13
|
|
|
12.86
|
|
|
|
Period-end balances at
|
||||||||||||||||||
Silicon Valley Bank tangible common equity, tangible assets and risk-weighted assets (Dollars in thousands, except ratios)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
September 30, 2019
|
|
June 30, 2019
|
|
March 31, 2019
|
||||||||||
Tangible common equity
|
|
$
|
5,617,402
|
|
|
$
|
5,034,095
|
|
|
$
|
4,918,767
|
|
|
$
|
4,936,520
|
|
|
$
|
4,696,564
|
|
Tangible assets
|
|
$
|
73,630,526
|
|
|
$
|
69,563,817
|
|
|
$
|
66,824,088
|
|
|
$
|
62,380,814
|
|
|
$
|
58,774,326
|
|
Risk-weighted assets
|
|
$
|
46,778,481
|
|
|
$
|
44,502,150
|
|
|
$
|
41,597,959
|
|
|
$
|
38,821,244
|
|
|
$
|
38,132,316
|
|
Tangible common equity to tangible assets
|
|
7.63
|
%
|
|
7.24
|
%
|
|
7.36
|
%
|
|
7.91
|
%
|
|
7.99
|
%
|
|||||
Tangible common equity to risk-weighted assets
|
|
12.01
|
|
|
11.31
|
|
|
11.82
|
|
|
12.72
|
|
|
12.32
|
|