x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 91-1962278 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3003 Tasman Drive, Santa Clara, California | 95054-1191 | |
(Address of principal executive offices) | (Zip Code) |
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(Dollars in thousands, except par value and share data) | March 31, 2013 | December 31, 2012 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,519,249 | $ | 1,008,983 | ||||
Available-for-sale securities | 10,908,163 | 11,343,177 | ||||||
Non-marketable securities | 1,215,788 | 1,184,265 | ||||||
Investment securities | 12,123,951 | 12,527,442 | ||||||
Loans, net of unearned income | 8,844,890 | 8,946,933 | ||||||
Allowance for loan losses | (112,205 | ) | (110,651 | ) | ||||
Net loans | 8,732,685 | 8,836,282 | ||||||
Premises and equipment, net of accumulated depreciation and amortization | 65,713 | 66,545 | ||||||
Accrued interest receivable and other assets | 354,402 | 326,871 | ||||||
Total assets | $ | 22,796,000 | $ | 22,766,123 | ||||
Liabilities and total equity | ||||||||
Liabilities: | ||||||||
Noninterest-bearing demand deposits | $ | 14,038,587 | $ | 13,875,275 | ||||
Interest-bearing deposits | 5,271,321 | 5,301,177 | ||||||
Total deposits | 19,309,908 | 19,176,452 | ||||||
Short-term borrowings | 7,460 | 166,110 | ||||||
Other liabilities | 359,380 | 360,566 | ||||||
Long-term debt | 457,194 | 457,762 | ||||||
Total liabilities | 20,133,942 | 20,160,890 | ||||||
Commitments and contingencies (Note 11 and Note 14) | ||||||||
SVBFG stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Common stock, $0.001 par value, 150,000,000 shares authorized; 44,970,402 shares and 44,627,182 shares outstanding, respectively | 45 | 45 | ||||||
Additional paid-in capital | 570,789 | 547,079 | ||||||
Retained earnings | 1,215,770 | 1,174,878 | ||||||
Accumulated other comprehensive income | 95,615 | 108,553 | ||||||
Total SVBFG stockholders’ equity | 1,882,219 | 1,830,555 | ||||||
Noncontrolling interests | 779,839 | 774,678 | ||||||
Total equity | 2,662,058 | 2,605,233 | ||||||
Total liabilities and total equity | $ | 22,796,000 | $ | 22,766,123 |
Three months ended March 31, | ||||||||
(Dollars in thousands, except per share amounts) | 2013 | 2012 | ||||||
Interest income: | ||||||||
Loans | $ | 123,744 | $ | 109,461 | ||||
Available-for-sale securities: | ||||||||
Taxable | 45,752 | 47,375 | ||||||
Non-taxable | 799 | 900 | ||||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | 719 | 1,038 | ||||||
Total interest income | 171,014 | 158,774 | ||||||
Interest expense: | ||||||||
Deposits | 2,051 | 1,481 | ||||||
Borrowings | 5,794 | 6,356 | ||||||
Total interest expense | 7,845 | 7,837 | ||||||
Net interest income | 163,169 | 150,937 | ||||||
Provision for loan losses | 5,813 | 14,529 | ||||||
Net interest income after provision for loan losses | 157,356 | 136,408 | ||||||
Noninterest income: | ||||||||
Gains on investment securities, net (includes losses of $45 and $874, respectively, in unrealized net losses on available-for-sale securities reclassified out of AOCI) | 27,438 | 7,839 | ||||||
Foreign exchange fees | 13,448 | 12,103 | ||||||
Gains on derivative instruments, net | 11,040 | 5,976 | ||||||
Deposit service charges | 8,793 | 8,096 | ||||||
Credit card fees | 7,448 | 5,668 | ||||||
Client investment fees | 3,475 | 2,897 | ||||||
Letters of credit and standby letters of credit income | 3,435 | 3,636 | ||||||
Other | 3,527 | 13,078 | ||||||
Total noninterest income | 78,604 | 59,293 | ||||||
Noninterest expense: | ||||||||
Compensation and benefits | 88,704 | 83,737 | ||||||
Professional services | 17,160 | 14,607 | ||||||
Premises and equipment | 10,725 | 7,564 | ||||||
Business development and travel | 8,272 | 7,746 | ||||||
Net occupancy | 5,767 | 5,623 | ||||||
FDIC assessments | 3,382 | 2,498 | ||||||
Correspondent bank fees | 3,055 | 2,688 | ||||||
Provision for (reduction of) unfunded credit commitments | 2,014 | (258 | ) | |||||
Other | 9,935 | 7,807 | ||||||
Total noninterest expense | 149,014 | 132,012 | ||||||
Income before income tax expense | 86,946 | 63,689 | ||||||
Income tax expense (includes income tax benefits of $18 and $357, respectively, from AOCI reclassification items) | 26,401 | 23,756 | ||||||
Net income before noncontrolling interests | 60,545 | 39,933 | ||||||
Net income attributable to noncontrolling interests | (19,654 | ) | (5,143 | ) | ||||
Net income available to common stockholders | $ | 40,891 | $ | 34,790 | ||||
Earnings per common share—basic | $ | 0.91 | $ | 0.79 | ||||
Earnings per common share—diluted | 0.90 | 0.78 |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Net income before noncontrolling interests | $ | 60,545 | $ | 39,933 | ||||
Other comprehensive income, net of tax: | ||||||||
Change in cumulative translation gains: | ||||||||
Foreign currency translation (losses) gains | (826 | ) | 2,472 | |||||
Related tax benefit (expense) | 297 | (1,013 | ) | |||||
Change in unrealized (losses) gains on available-for-sale securities: | ||||||||
Unrealized holding (losses) gains | (22,102 | ) | 3,269 | |||||
Related tax benefit (expense) | 9,666 | (1,335 | ) | |||||
Reclassification adjustment for losses included in net income | 45 | 874 | ||||||
Related tax benefit | (18 | ) | (357 | ) | ||||
Other comprehensive (losses) income, net of tax | (12,938 | ) | 3,910 | |||||
Comprehensive income | 47,607 | 43,843 | ||||||
Comprehensive income attributable to noncontrolling interests | (19,654 | ) | (5,143 | ) | ||||
Comprehensive income attributable to SVBFG | $ | 27,953 | $ | 38,700 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total SVBFG Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||
(Dollars in thousands) | Shares | Amount | |||||||||||||||||||||||||||||
Balance at December 31, 2011 | 43,507,932 | $ | 44 | $ | 484,216 | $ | 999,733 | $ | 85,399 | $ | 1,569,392 | $ | 680,997 | $ | 2,250,389 | ||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | 505,618 | — | 17,900 | — | — | 17,900 | — | 17,900 | |||||||||||||||||||||||
Common stock issued under ESOP | 73,560 | — | 4,345 | — | — | 4,345 | — | 4,345 | |||||||||||||||||||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other | — | — | 3,819 | — | — | 3,819 | — | 3,819 | |||||||||||||||||||||||
Net income | — | — | — | 34,790 | — | 34,790 | 5,143 | 39,933 | |||||||||||||||||||||||
Capital calls and distributions, net | — | — | — | — | — | — | 17,073 | 17,073 | |||||||||||||||||||||||
Net change in unrealized gains on available-for-sale securities, net of tax | — | — | — | — | 2,451 | 2,451 | — | 2,451 | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | 1,459 | 1,459 | — | 1,459 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 5,334 | — | — | 5,334 | — | 5,334 | |||||||||||||||||||||||
Balance at March 31, 2012 | 44,087,110 | $ | 44 | $ | 515,614 | $ | 1,034,523 | $ | 89,309 | $ | 1,639,490 | $ | 703,213 | $ | 2,342,703 | ||||||||||||||||
Balance at December 31, 2012 | 44,627,182 | $ | 45 | $ | 547,079 | $ | 1,174,878 | $ | 108,553 | $ | 1,830,555 | $ | 774,678 | $ | 2,605,233 | ||||||||||||||||
Common stock issued under employee benefit plans, net of restricted stock cancellations | 268,274 | — | 12,895 | — | — | 12,895 | — | 12,895 | |||||||||||||||||||||||
Common stock issued under ESOP | 74,946 | — | 5,166 | — | — | 5,166 | — | 5,166 | |||||||||||||||||||||||
Income tax expense from stock options exercised, vesting of restricted stock and other | — | — | (637 | ) | — | — | (637 | ) | — | (637 | ) | ||||||||||||||||||||
Net income | — | — | — | 40,891 | — | 40,891 | 19,654 | 60,545 | |||||||||||||||||||||||
Capital calls and (distributions), net | — | — | — | — | — | — | (14,493 | ) | (14,493 | ) | |||||||||||||||||||||
Net change in unrealized gains on available-for-sale securities, net of tax | — | — | — | — | (12,409 | ) | (12,409 | ) | — | (12,409 | ) | ||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | (529 | ) | (529 | ) | — | (529 | ) | ||||||||||||||||||||
Share-based compensation expense | — | — | 6,286 | — | — | 6,286 | — | 6,286 | |||||||||||||||||||||||
Other, net | — | — | — | 1 | — | 1 | — | 1 | |||||||||||||||||||||||
Balance at March 31, 2013 | 44,970,402 | $ | 45 | $ | 570,789 | $ | 1,215,770 | $ | 95,615 | $ | 1,882,219 | $ | 779,839 | $ | 2,662,058 |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Cash flows from operating activities: | ||||||||
Net income before noncontrolling interests | $ | 60,545 | $ | 39,933 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 5,813 | 14,529 | ||||||
Provision for (reduction of) unfunded credit commitments | 2,014 | (258 | ) | |||||
Changes in fair values of derivatives, net | 757 | (3,370 | ) | |||||
Gains on investment securities, net | (27,438 | ) | (7,839 | ) | ||||
Depreciation and amortization | 8,479 | 6,454 | ||||||
Amortization of premiums and discounts on available-for-sale securities, net | 8,348 | 9,869 | ||||||
Tax (expense) benefit from stock exercises | (1,247 | ) | 790 | |||||
Amortization of share-based compensation | 5,826 | 5,149 | ||||||
Amortization of deferred loan fees | (15,040 | ) | (15,488 | ) | ||||
Deferred income tax expense | (19 | ) | (1,570 | ) | ||||
Losses from the write-off of premises and equipment | 363 | — | ||||||
Changes in other assets and liabilities: | ||||||||
Accrued interest receivable and payable, net | (4,735 | ) | (6,399 | ) | ||||
Accounts receivable and payable, net | 6,220 | 14,631 | ||||||
Income tax payable and receivable, net | 6,236 | 14,013 | ||||||
Accrued compensation | (62,375 | ) | (66,240 | ) | ||||
Foreign exchange spot contracts, net | 26,534 | (21,154 | ) | |||||
Other, net | (21,325 | ) | 6,078 | |||||
Net cash used for operating activities | (1,044 | ) | (10,872 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of available-for-sale securities | (219,987 | ) | (1,777,958 | ) | ||||
Proceeds from sales of available-for-sale securities | 581 | 3,219 | ||||||
Proceeds from maturities and pay downs of available-for-sale securities | 653,764 | 777,717 | ||||||
Purchases of nonmarketable securities (cost and equity method accounting) | (5,112 | ) | (9,005 | ) | ||||
Proceeds from sales of nonmarketable securities (cost and equity method accounting) | 7,942 | 11,317 | ||||||
Purchases of nonmarketable securities (fair value accounting) | (30,342 | ) | (29,440 | ) | ||||
Proceeds from sales and distributions of nonmarketable securities (fair value accounting) | 21,748 | 25,545 | ||||||
Net decrease (increase) in loans | 108,971 | (144,957 | ) | |||||
Proceeds from recoveries of charged-off loans | 1,367 | 3,436 | ||||||
Purchases of premises and equipment | (6,606 | ) | (8,054 | ) | ||||
Net cash provided by (used for) investing activities | 532,326 | (1,148,180 | ) | |||||
Cash flows from financing activities: | ||||||||
Net increase in deposits | 133,456 | 7,346 | ||||||
(Decrease) increase in short-term borrowings | (158,650 | ) | 849,380 | |||||
Capital contributions from noncontrolling interests, net of distributions | (14,493 | ) | 17,073 | |||||
Tax benefit from stock exercises | 610 | 3,029 | ||||||
Proceeds from issuance of common stock and ESPP | 18,061 | 17,900 | ||||||
Net cash (used for) provided by financing activities | (21,016 | ) | 894,728 | |||||
Net increase (decrease) in cash and cash equivalents | 510,266 | (264,324 | ) | |||||
Cash and cash equivalents at beginning of period | 1,008,983 | 1,114,948 | ||||||
Cash and cash equivalents at end of period | $ | 1,519,249 | $ | 850,624 | ||||
Supplemental disclosures: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 12,372 | $ | 12,012 | ||||
Income taxes | 19,318 | 6,556 | ||||||
Noncash items during the period: | ||||||||
Unrealized (losses) gains on available-for-sale securities, net of tax | $ | (12,409 | ) | $ | 2,451 |
1. | Basis of Presentation |
1. | We have the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; |
2. | The aggregate indirect and direct variable interests held by the Company have the obligation to absorb losses or the right to receive benefits from the entity that could be significant to the VIE; and, |
3. | Qualitative and quantitative factors regarding the nature, size, and form of our involvement with the VIE. |
2. | Stockholders’ Equity and EPS |
Three months ended March 31, | ||||||||
(Dollars and shares in thousands, except per share amounts) | 2013 | 2012 | ||||||
Numerator: | ||||||||
Net income available to common stockholders | $ | 40,891 | $ | 34,790 | ||||
Denominator: | ||||||||
Weighted average common shares outstanding-basic | 44,802 | 43,780 | ||||||
Weighted average effect of dilutive securities: | ||||||||
Stock options and ESPP | 402 | 501 | ||||||
Restricted stock units | 189 | 179 | ||||||
Denominator for diluted calculation | 45,393 | 44,460 | ||||||
Earnings per common share: | ||||||||
Basic | $ | 0.91 | $ | 0.79 | ||||
Diluted | $ | 0.90 | $ | 0.78 |
Three months ended March 31, | ||||||
(Shares in thousands) | 2013 | 2012 | ||||
Stock options | 708 | 121 | ||||
Restricted stock units | — | 1 | ||||
Total | 708 | 122 |
3. | Share-Based Compensation |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Share-based compensation expense | $ | 5,826 | $ | 5,149 | ||||
Income tax benefit related to share-based compensation expense | (1,603 | ) | (1,199 | ) |
(Dollars in thousands) | Unrecognized Expense | Average Expected Recognition Period - in Years | ||||
Stock options | $ | 13,646 | 2.43 | |||
Restricted stock units | 21,643 | 2.51 | ||||
Total unrecognized share-based compensation expense | $ | 35,289 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life in Years | Aggregate Intrinsic Value of In-The- Money Options | ||||||||||
Outstanding at December 31, 2012 | 2,060,413 | $ | 49.15 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (265,814 | ) | 48.53 | ||||||||||
Forfeited | (8,769 | ) | 52.95 | ||||||||||
Expired | (200 | ) | 46.48 | ||||||||||
Outstanding at March 31, 2013 | 1,785,630 | 49.22 | 4.05 | $ | 38,785,843 | ||||||||
Vested and expected to vest at March 31, 2013 | 1,725,072 | 48.84 | 4.00 | 38,116,691 | |||||||||
Exercisable at March 31, 2013 | 831,168 | 43.23 | 2.89 | 23,032,874 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Nonvested at December 31, 2012 | 585,543 | $ | 59.42 | ||||
Granted | 3,700 | 60.92 | |||||
Vested | (4,228 | ) | 47.89 | ||||
Forfeited | (3,334 | ) | 57.97 | ||||
Nonvested at March 31, 2013 | 581,681 | 59.52 |
4. | Cash and Cash Equivalents |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | ||||||
Cash and due from banks (1) | $ | 1,144,926 | $ | 752,056 | ||||
Securities purchased under agreements to resell (2) | 338,687 | 133,357 | ||||||
Other short-term investment securities | 35,636 | 123,570 | ||||||
Total cash and cash equivalents | $ | 1,519,249 | $ | 1,008,983 |
(1) | At March 31, 2013 and December 31, 2012, $634 million and $72 million, respectively, of our cash and due from banks was deposited at the FRB and was earning interest at the Federal Funds target rate, and interest-earning deposits in other financial institutions were $213 million and $283 million, respectively. |
(2) | At March 31, 2013 and December 31, 2012, securities purchased under agreements to resell were collateralized by U.S. treasury securities and U.S. agency securities with aggregate fair values of $345 million and $136 million, respectively. None of these securities received as collateral were sold or repledged as of March 31, 2013 or December 31, 2012. |
5. | Investment Securities |
March 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Carrying Value | ||||||||||||||||||||||||
Available-for-sale securities, at fair value: | ||||||||||||||||||||||||||||||||
U.S. treasury securities | $ | 99,993 | $ | 53 | $ | — | $ | 100,046 | $ | 25,057 | $ | 190 | $ | — | $ | 25,247 | ||||||||||||||||
U.S. agency debentures | 3,415,170 | 69,116 | (383 | ) | 3,483,903 | 3,370,455 | 77,173 | — | 3,447,628 | |||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 1,308,099 | 40,177 | (446 | ) | 1,347,830 | 1,428,682 | 44,858 | (107 | ) | 1,473,433 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 3,818,389 | 38,200 | (1,522 | ) | 3,855,067 | 4,063,020 | 41,949 | (995 | ) | 4,103,974 | ||||||||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | 1,593,456 | 9,425 | (28 | ) | 1,602,853 | 1,760,551 | 12,201 | (4 | ) | 1,772,748 | ||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 414,300 | 6,275 | (1,240 | ) | 419,335 | 416,487 | 6,100 | (489 | ) | 422,098 | ||||||||||||||||||||||
Municipal bonds and notes | 83,299 | 7,204 | — | 90,503 | 85,790 | 7,750 | (11 | ) | 93,529 | |||||||||||||||||||||||
Equity securities | 6,486 | 3,219 | (1,079 | ) | 8,626 | 2,108 | 2,739 | (327 | ) | 4,520 | ||||||||||||||||||||||
Total available-for-sale securities | $ | 10,739,192 | $ | 173,669 | $ | (4,698 | ) | $ | 10,908,163 | $ | 11,152,150 | $ | 192,960 | $ | (1,933 | ) | $ | 11,343,177 | ||||||||||||||
Non-marketable securities: | ||||||||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments (1) | 701,076 | 665,921 | ||||||||||||||||||||||||||||||
Other venture capital investments (2) | 124,786 | 127,091 | ||||||||||||||||||||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||||||||||||||||||
Other investments (3) | 140,607 | 139,330 | ||||||||||||||||||||||||||||||
Low income housing tax credit funds | 69,263 | 70,318 | ||||||||||||||||||||||||||||||
Non-marketable securities (cost method accounting): | ||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments (4) | 160,870 | 161,884 | ||||||||||||||||||||||||||||||
Other investments | 19,186 | 19,721 | ||||||||||||||||||||||||||||||
Total non-marketable securities | 1,215,788 | 1,184,265 | ||||||||||||||||||||||||||||||
Total investment securities | $ | 12,123,951 | $ | 12,527,442 |
(1) | The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and our ownership percentage of each fund at March 31, 2013 and December 31, 2012 (fair value accounting): |
March 31, 2013 | December 31, 2012 | |||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||
SVB Strategic Investors Fund, LP | $ | 32,142 | 12.6 | % | $ | 32,850 | 12.6 | % | ||||||
SVB Strategic Investors Fund II, LP | 92,834 | 8.6 | 91,294 | 8.6 | ||||||||||
SVB Strategic Investors Fund III, LP | 212,392 | 5.9 | 209,696 | 5.9 | ||||||||||
SVB Strategic Investors Fund IV, LP | 189,369 | 5.0 | 169,931 | 5.0 | ||||||||||
Strategic Investors Fund V Funds | 51,985 | Various | 40,622 | Various | ||||||||||
SVB Capital Preferred Return Fund, LP | 54,919 | 20.0 | 53,643 | 20.0 | ||||||||||
SVB Capital—NT Growth Partners, LP | 59,835 | 33.0 | 60,120 | 33.0 | ||||||||||
SVB Capital Partners II, LP (i) | 1,138 | 5.1 | 1,303 | 5.1 | ||||||||||
Other private equity fund (ii) | 6,462 | 58.2 | 6,462 | 58.2 | ||||||||||
Total venture capital and private equity fund investments | $ | 701,076 | $ | 665,921 |
(i) | At March 31, 2013, we had a direct ownership interest of 1.3 percent and an indirect ownership interest of 3.8 percent in the fund through our ownership interest of SVB Strategic Investors Fund II, LP. |
(ii) | At March 31, 2013, we had a direct ownership interest of 41.5 percent and indirect ownership interests of 12.6 percent and 4.1 percent in the fund through our ownership interest of SVB Capital—NT Growth Partners, LP and SVB Capital Preferred Return Fund, LP, respectively. |
(2) | The following table shows the amounts of other venture capital investments held by the following consolidated funds and our ownership percentage of each fund at March 31, 2013 and December 31, 2012 (fair value accounting): |
March 31, 2013 | December 31, 2012 | |||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||
Silicon Valley BancVentures, LP | $ | 39,971 | 10.7 | % | $ | 43,493 | 10.7 | % | ||||||
SVB Capital Partners II, LP (i) | 80,966 | 5.1 | 79,761 | 5.1 | ||||||||||
SVB Capital Shanghai Yangpu Venture Capital Fund | 3,849 | 6.8 | 3,837 | 6.8 | ||||||||||
Total other venture capital investments | $ | 124,786 | $ | 127,091 |
(i) | At March 31, 2013, we had a direct ownership interest of 1.3 percent and an indirect ownership interest of 3.8 percent in the fund through our ownership of SVB Strategic Investors Fund II, LP. |
(3) | The following table shows the carrying value and our ownership percentage of each investment at March 31, 2013 and December 31, 2012 (equity method accounting): |
March 31, 2013 | December 31, 2012 | |||||||||||||
(Dollars in thousands) | Amount | Ownership % | Amount | Ownership % | ||||||||||
Gold Hill Venture Lending 03, LP (i) | $ | 11,794 | 9.3 | % | $ | 9,413 | 9.3 | % | ||||||
Gold Hill Capital 2008, LP (ii) | 20,047 | 15.5 | 20,893 | 15.5 | ||||||||||
China Joint Venture investment | 79,210 | 50.0 | 78,545 | 50.0 | ||||||||||
Other investments | 29,556 | Various | 30,479 | Various | ||||||||||
Total other investments (equity method accounting) | $ | 140,607 | $ | 139,330 |
(i) | At March 31, 2013, we had a direct ownership interest of 4.8 percent in the fund and an indirect interest in the fund through our investment in Gold Hill Venture Lending Partners 03, LLC (“GHLLC”) of 4.5 percent. |
(ii) | At March 31, 2013, we had a direct ownership interest of 11.5 percent in the fund and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of 4.0 percent. |
(4) | Represents investments in 309 and 324 funds (primarily venture capital funds) at March 31, 2013 and December 31, 2012, respectively, where our ownership interest is less than 5% of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships operating activities and financial policies. For the three months ended March 31, 2013, we recognized OTTI losses of $0.5 million resulting from other-than-temporary declines in value for 16 of the 309 investments. The OTTI losses are included in net gains on investment securities, a component of noninterest income. We concluded that any declines in value for the remaining investments were temporary and as such, no OTTI was required to be recognized. At March 31, 2013, the carrying value of these venture capital and private equity fund investments (cost method accounting) was $161 million, and the estimated fair value was $200 million. |
March 31, 2013 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||
U.S. agency debentures | $ | 303,265 | $ | (383 | ) | $ | — | $ | — | $ | 303,265 | $ | (383 | ) | ||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 22,351 | (446 | ) | — | — | 22,351 | (446 | ) | ||||||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 252,341 | (1,021 | ) | 95,676 | (501 | ) | 348,017 | (1,522 | ) | |||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | — | — | 5,239 | (28 | ) | 5,239 | (28 | ) | ||||||||||||||||
Agency-issued commercial mortgage-backed securities | 99,554 | (1,240 | ) | — | — | 99,554 | (1,240 | ) | ||||||||||||||||
Equity securities | 2,815 | (866 | ) | 309 | (213 | ) | 3,124 | (1,079 | ) | |||||||||||||||
Total temporarily impaired securities (1) | $ | 680,326 | $ | (3,956 | ) | $ | 101,224 | $ | (742 | ) | $ | 781,550 | $ | (4,698 | ) |
(1) | As of March 31, 2013, we identified a total of 39 investments that were in unrealized loss positions, of which 9 investments totaling $101.2 million with unrealized losses of $0.7 million have been in an impaired position for a period of time greater than 12 months. As of March 31, 2013, we do not intend to sell any impaired debt or equity securities prior to recovery of our adjusted cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our adjusted cost basis. Based on our analysis as of March 31, 2013, we deem all impairments to be temporary, and therefore changes in value for our temporarily impaired securities as of the same date are included in other comprehensive income. Market valuations and impairment analyses on assets in the available-for-sale securities portfolio are reviewed and monitored on a quarterly basis. |
December 31, 2012 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | Fair Value of Investments | Unrealized Losses | ||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency-issued mortgage-backed securities | $ | 22,831 | $ | (107 | ) | $ | — | $ | — | $ | 22,831 | $ | (107 | ) | ||||||||||
Agency-issued collateralized mortgage obligations—fixed rate | 461,397 | (995 | ) | — | — | 461,397 | (995 | ) | ||||||||||||||||
Agency-issued collateralized mortgage obligations—variable rate | — | — | 7,908 | (4 | ) | 7,908 | (4 | ) | ||||||||||||||||
Agency-issued commercial mortgage-backed securities | 150,581 | (489 | ) | — | — | 150,581 | (489 | ) | ||||||||||||||||
Municipal bonds and notes | 2,098 | (11 | ) | — | — | 2,098 | (11 | ) | ||||||||||||||||
Equity securities | 97 | (61 | ) | 255 | (266 | ) | 352 | (327 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 637,004 | $ | (1,663 | ) | $ | 8,163 | $ | (270 | ) | $ | 645,167 | $ | (1,933 | ) |
March 31, 2013 | |||||||||||||||||||||||||||||||||||
Total | One Year or Less | After One Year to Five Years | After Five Years to Ten Years | After Ten Years | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Value | Weighted- Average Yield | Carrying Value | Weighted- Average Yield | Carrying Value | Weighted- Average Yield | Carrying Value | Weighted- Average Yield | Carrying Value | Weighted- Average Yield | |||||||||||||||||||||||||
U.S. treasury securities | $ | 100,046 | 0.68 | % | $ | 100,046 | 0.68 | % | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||||||||
U.S. agency debentures | 3,483,903 | 1.54 | 151,367 | 1.30 | 2,584,574 | 1.48 | 747,962 | 1.76 | — | — | |||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Agency-issued mortgage-backed securities | 1,347,830 | 2.32 | — | — | — | — | 1,228,081 | 2.26 | 119,749 | 2.98 | |||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate | 3,855,067 | 1.94 | — | — | — | — | — | — | 3,855,067 | 1.94 | |||||||||||||||||||||||||
Agency-issued collateralized mortgage obligations - variable rate | 1,602,853 | 0.70 | — | — | — | — | — | — | 1,602,853 | 0.70 | |||||||||||||||||||||||||
Agency-issued commercial mortgage-backed securities | 419,335 | 1.82 | — | — | — | — | — | — | 419,335 | 1.82 | |||||||||||||||||||||||||
Municipal bonds and notes | 90,503 | 5.98 | 938 | 5.32 | 19,133 | 5.65 | 49,986 | 6.02 | 20,446 | 6.25 | |||||||||||||||||||||||||
Total | $ | 10,899,537 | 1.69 | $ | 252,351 | 1.07 | $ | 2,603,707 | 1.51 | $ | 2,026,029 | 2.17 | $ | 6,017,450 | 1.64 |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Gross gains on investment securities: | ||||||||
Available-for-sale securities, at fair value (1) | $ | — | $ | 21 | ||||
Marketable securities (fair value accounting) | 1,918 | 316 | ||||||
Non-marketable securities (fair value accounting): | ||||||||
Venture capital and private equity fund investments | 27,381 | 26,110 | ||||||
Other venture capital investments | 2,640 | 1,777 | ||||||
Other investments | — | 21 | ||||||
Non-marketable securities (equity method accounting): | ||||||||
Other investments | 2,715 | 1,422 | ||||||
Non-marketable securities (cost method accounting): | ||||||||
Venture capital and private equity fund investments | 1,023 | 407 | ||||||
Other investments | 145 | 42 | ||||||
Total gross gains on investment securities | 35,822 | 30,116 | ||||||
Gross losses on investment securities: | ||||||||
Available-for-sale securities, at fair value (1) | (45 | ) | (895 | ) | ||||
Marketable securities (fair value accounting) | (2,073 | ) | — | |||||
Non-marketable securities (fair value accounting): | ||||||||
Venture capital and private equity fund investments | (4,742 | ) | (13,915 | ) | ||||
Other venture capital investments | (464 | ) | (6,663 | ) | ||||
Non-marketable securities (equity method accounting): | ||||||||
Other investments | (245 | ) | (376 | ) | ||||
Non-marketable securities (cost method accounting): | ||||||||
Venture capital and private equity fund investments | (469 | ) | (363 | ) | ||||
Other investments | (346 | ) | (65 | ) | ||||
Total gross losses on investment securities | (8,384 | ) | (22,277 | ) | ||||
Gains on investment securities, net | $ | 27,438 | $ | 7,839 | ||||
Gains attributable to noncontrolling interests, including carried interest | $ | 22,296 | $ | 7,338 |
(1) | Includes realized gains on sales of available-for-sale securities that are recognized in the income statement. Unrealized gains on available-for-sale securities are recognized in other comprehensive income. The cost basis of available-for-sale securities sold is determined on a specific identification basis. |
6. | Loans and Allowance for Loan Losses |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | ||||||
Commercial loans: | ||||||||
Software | $ | 3,455,602 | $ | 3,261,489 | ||||
Hardware | 1,220,691 | 1,118,370 | ||||||
Venture capital/private equity | 1,322,123 | 1,732,699 | ||||||
Life science | 1,017,859 | 1,066,199 | ||||||
Premium wine | 139,017 | 143,511 | ||||||
Other | 342,129 | 315,453 | ||||||
Total commercial loans | 7,497,421 | 7,637,721 | ||||||
Real estate secured loans: | ||||||||
Premium wine (1) | 464,713 | 413,513 | ||||||
Consumer loans (2) | 724,894 | 685,300 | ||||||
Total real estate secured loans | 1,189,607 | 1,098,813 | ||||||
Construction loans | 58,573 | 65,742 | ||||||
Consumer loans | 99,289 | 144,657 | ||||||
Total loans, net of unearned income (3) | $ | 8,844,890 | $ | 8,946,933 |
(1) | Included in our premium wine portfolio are gross construction loans of $133 million and $148 million at March 31, 2013 and December 31, 2012, respectively. |
(2) | Consumer loans secured by real estate at March 31, 2013 and December 31, 2012 were comprised of the following: |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | ||||||
Loans for personal residence | $ | 541,115 | $ | 503,378 | ||||
Loans to eligible employees | 112,314 | 110,584 | ||||||
Home equity lines of credit | 71,465 | 71,338 | ||||||
Consumer loans secured by real estate | $ | 724,894 | $ | 685,300 |
(3) | Included within our total loan portfolio are credit card loans of $77 million and $64 million at March 31, 2013 and December 31, 2012, respectively. |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | ||||||
Commercial loans: | ||||||||
Software | $ | 3,455,602 | $ | 3,261,489 | ||||
Hardware | 1,220,691 | 1,118,370 | ||||||
Venture capital/private equity | 1,322,123 | 1,732,699 | ||||||
Life science | 1,017,859 | 1,066,199 | ||||||
Premium wine | 603,730 | 557,024 | ||||||
Other | 400,702 | 381,195 | ||||||
Total commercial loans | 8,020,707 | 8,116,976 | ||||||
Consumer loans: | ||||||||
Real estate secured loans | 724,894 | 685,300 | ||||||
Other consumer loans | 99,289 | 144,657 | ||||||
Total consumer loans | 824,183 | 829,957 | ||||||
Total loans, net of unearned income | $ | 8,844,890 | $ | 8,946,933 |
(Dollars in thousands) | 30 - 59 Days Past Due | 60 - 89 Days Past Due | Greater Than 90 Days Past Due | Total Past Due | Current | Loans Past Due 90 Days or More Still Accruing Interest | ||||||||||||||||||
March 31, 2013: | ||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Software | $ | 2,739 | $ | 1,493 | $ | 5 | $ | 4,237 | $ | 3,480,632 | $ | 5 | ||||||||||||
Hardware | 4,034 | 19 | 31 | 4,084 | 1,206,431 | 31 | ||||||||||||||||||
Venture capital/private equity | 84 | 1 | — | 85 | 1,335,476 | — | ||||||||||||||||||
Life science | 5,886 | 220 | — | 6,106 | 1,021,715 | — | ||||||||||||||||||
Premium wine | 1,700 | — | — | 1,700 | 600,383 | — | ||||||||||||||||||
Other | 185 | — | — | 185 | 398,877 | — | ||||||||||||||||||
Total commercial loans | 14,628 | 1,733 | 36 | 16,397 | 8,043,514 | 36 | ||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||
Real estate secured loans | 605 | — | — | 605 | 719,801 | — | ||||||||||||||||||
Other consumer loans | 385 | — | — | 385 | 97,781 | — | ||||||||||||||||||
Total consumer loans | 990 | — | — | 990 | 817,582 | — | ||||||||||||||||||
Total gross loans excluding impaired loans | 15,618 | 1,733 | 36 | 17,387 | 8,861,096 | 36 | ||||||||||||||||||
Impaired loans | 2,459 | 1,740 | 13,929 | 18,128 | 26,218 | — | ||||||||||||||||||
Total gross loans | $ | 18,077 | $ | 3,473 | $ | 13,965 | $ | 35,515 | $ | 8,887,314 | $ | 36 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Software | $ | 5,890 | $ | 238 | $ | 19 | $ | 6,147 | $ | 3,284,489 | $ | 19 | ||||||||||||
Hardware | 167 | 32 | — | 199 | 1,107,422 | — | ||||||||||||||||||
Venture capital/private equity | 7 | — | — | 7 | 1,749,896 | — | ||||||||||||||||||
Life science | 207 | 117 | — | 324 | 1,076,468 | — | ||||||||||||||||||
Premium wine | — | — | — | — | 554,886 | — | ||||||||||||||||||
Other | 280 | — | — | 280 | 378,619 | — | ||||||||||||||||||
Total commercial loans | 6,551 | 387 | 19 | 6,957 | 8,151,780 | 19 | ||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||
Real estate secured loans | — | — | — | — | 683,254 | — | ||||||||||||||||||
Other consumer loans | 111 | — | — | 111 | 143,867 | — | ||||||||||||||||||
Total consumer loans | 111 | — | — | 111 | 827,121 | — | ||||||||||||||||||
Total gross loans excluding impaired loans | 6,662 | 387 | 19 | 7,068 | 8,978,901 | 19 | ||||||||||||||||||
Impaired loans | 3,901 | 9,676 | 2,269 | 15,846 | 22,433 | — | ||||||||||||||||||
Total gross loans | $ | 10,563 | $ | 10,063 | $ | 2,288 | $ | 22,914 | $ | 9,001,334 | $ | 19 |
(Dollars in thousands) | Impaired loans for which there is a related allowance for loan losses | Impaired loans for which there is no related allowance for loan losses | Total carrying value of impaired loans | Total unpaid principal of impaired loans | ||||||||||||
March 31, 2013: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 6,094 | $ | — | $ | 6,094 | $ | 6,196 | ||||||||
Hardware | 20,722 | 1,944 | 22,666 | 41,943 | ||||||||||||
Life Science | 454 | — | 454 | 454 | ||||||||||||
Premium wine | — | 4,303 | 4,303 | 4,731 | ||||||||||||
Other | — | 5,294 | 5,294 | 10,008 | ||||||||||||
Total commercial loans | 27,270 | 11,541 | 38,811 | 63,332 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | 2,771 | 1,672 | 4,443 | 9,650 | ||||||||||||
Other consumer loans | 1,092 | — | 1,092 | 1,310 | ||||||||||||
Total consumer loans | 3,863 | 1,672 | 5,535 | 10,960 | ||||||||||||
Total | $ | 31,133 | $ | 13,213 | $ | 44,346 | $ | 74,292 | ||||||||
December 31, 2012: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 3,191 | $ | 72 | $ | 3,263 | $ | 4,475 | ||||||||
Hardware | 21,863 | — | 21,863 | 27,876 | ||||||||||||
Life science | — | — | — | — | ||||||||||||
Premium wine | — | 4,398 | 4,398 | 4,716 | ||||||||||||
Other | — | 5,415 | 5,415 | 9,859 | ||||||||||||
Total commercial loans | 25,054 | 9,885 | 34,939 | 46,926 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | — | 2,239 | 2,239 | 7,185 | ||||||||||||
Other consumer loans | 1,101 | — | 1,101 | 1,300 | ||||||||||||
Total consumer loans | 1,101 | 2,239 | 3,340 | 8,485 | ||||||||||||
Total | $ | 26,155 | $ | 12,124 | $ | 38,279 | $ | 55,411 |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Average impaired loans: | ||||||||
Commercial loans: | ||||||||
Software | $ | 4,114 | $ | 1,536 | ||||
Hardware | 23,632 | 12,262 | ||||||
Life science | 314 | 146 | ||||||
Premium wine | 4,336 | 3,383 | ||||||
Other | 5,218 | 4,644 | ||||||
Total commercial loans | 37,614 | 21,971 | ||||||
Consumer loans: | ||||||||
Real estate secured loans | 2,676 | 12,847 | ||||||
Other consumer loans | 1,129 | 3,019 | ||||||
Total consumer loans | 3,805 | 15,866 | ||||||
Total average impaired loans | $ | 41,419 | $ | 37,837 |
Three months ended March 31, 2013 (dollars in thousands) | Beginning Balance December 31, 2012 | Charge-offs | Recoveries | Provision for (Reduction of) Loan Losses | Ending Balance March 31, 2013 | |||||||||||||||
Commercial loans: | ||||||||||||||||||||
Software | $ | 42,648 | $ | (1,518 | ) | $ | 242 | $ | 3,638 | $ | 45,010 | |||||||||
Hardware | 29,761 | (1,997 | ) | 446 | (341 | ) | 27,869 | |||||||||||||
Venture capital/private equity | 9,963 | — | — | 519 | 10,482 | |||||||||||||||
Life science | 13,606 | (2,070 | ) | 203 | 2,207 | 13,946 | ||||||||||||||
Premium wine | 3,523 | — | 90 | 86 | 3,699 | |||||||||||||||
Other | 3,912 | (41 | ) | 6 | 98 | 3,975 | ||||||||||||||
Total commercial loans | 103,413 | (5,626 | ) | 987 | 6,207 | 104,981 | ||||||||||||||
Consumer loans | 7,238 | — | 380 | (394 | ) | 7,224 | ||||||||||||||
Total allowance for loan losses | $ | 110,651 | $ | (5,626 | ) | $ | 1,367 | $ | 5,813 | $ | 112,205 |
Three months ended March 31, 2012 (dollars in thousands) | Beginning Balance December 31, 2011 | Charge-offs | Recoveries | (Reduction of)Provision for Loan Losses | Ending Balance March 31, 2012 | |||||||||||||||
Commercial loans: | ||||||||||||||||||||
Software | $ | 38,263 | $ | (859 | ) | $ | 2,759 | $ | (4,738 | ) | $ | 35,425 | ||||||||
Hardware | 16,810 | (3,848 | ) | 105 | 17,281 | 30,348 | ||||||||||||||
Venture capital/private equity | 7,319 | — | — | (105 | ) | 7,214 | ||||||||||||||
Life science | 10,243 | (113 | ) | 221 | (59 | ) | 10,292 | |||||||||||||
Premium wine | 3,914 | — | 78 | (254 | ) | 3,738 | ||||||||||||||
Other | 5,817 | (2,170 | ) | 44 | 1,111 | 4,802 | ||||||||||||||
Total commercial loans | 82,366 | (6,990 | ) | 3,207 | 13,236 | 91,819 | ||||||||||||||
Consumer loans | 7,581 | — | 229 | 1,293 | 9,103 | |||||||||||||||
Total allowance for loan losses | $ | 89,947 | $ | (6,990 | ) | $ | 3,436 | $ | 14,529 | $ | 100,922 |
March 31, 2013 | December 31, 2012 | |||||||||||||||
(Dollars in thousands) | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | ||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 2,087 | $ | 42,923 | $ | 762 | $ | 41,886 | ||||||||
Hardware | 5,016 | 22,853 | 5,251 | 24,510 | ||||||||||||
Venture capital/private equity | — | 10,482 | — | 9,963 | ||||||||||||
Life science | 201 | 13,745 | — | 13,606 | ||||||||||||
Premium wine | — | 3,699 | — | 3,523 | ||||||||||||
Other | — | 3,975 | — | 3,912 | ||||||||||||
Total commercial loans | 7,304 | 97,677 | 6,013 | 97,400 | ||||||||||||
Consumer loans | 424 | 6,800 | 248 | 6,990 | ||||||||||||
Total allowance for loan losses | $ | 7,728 | $ | 104,477 | $ | 6,261 | $ | 104,390 |
(Dollars in thousands) | Pass | Performing (Criticized) | Impaired | Total | ||||||||||||
March 31, 2013: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 3,250,004 | $ | 234,865 | $ | 6,094 | $ | 3,490,963 | ||||||||
Hardware | 1,084,742 | 125,773 | 22,666 | 1,233,181 | ||||||||||||
Venture capital/private equity | 1,334,740 | 821 | — | 1,335,561 | ||||||||||||
Life science | 916,649 | 111,172 | 454 | 1,028,275 | ||||||||||||
Premium wine | 590,448 | 11,635 | 4,303 | 606,386 | ||||||||||||
Other | 382,874 | 16,188 | 5,294 | 404,356 | ||||||||||||
Total commercial loans | 7,559,457 | 500,454 | 38,811 | 8,098,722 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | 700,850 | 19,556 | 4,443 | 724,849 | ||||||||||||
Other consumer loans | 91,988 | 6,178 | 1,092 | 99,258 | ||||||||||||
Total consumer loans | 792,838 | 25,734 | 5,535 | 824,107 | ||||||||||||
Total gross loans | $ | 8,352,295 | $ | 526,188 | $ | 44,346 | $ | 8,922,829 | ||||||||
December 31, 2012: | ||||||||||||||||
Commercial loans: | ||||||||||||||||
Software | $ | 3,050,449 | $ | 240,187 | $ | 3,263 | $ | 3,293,899 | ||||||||
Hardware | 970,802 | 136,819 | 21,863 | 1,129,484 | ||||||||||||
Venture capital/private equity | 1,748,663 | 1,240 | — | 1,749,903 | ||||||||||||
Life science | 956,276 | 120,516 | — | 1,076,792 | ||||||||||||
Premium wine | 545,697 | 9,189 | 4,398 | 559,284 | ||||||||||||
Other | 360,291 | 18,608 | 5,415 | 384,314 | ||||||||||||
Total commercial loans | 7,632,178 | 526,559 | 34,939 | 8,193,676 | ||||||||||||
Consumer loans: | ||||||||||||||||
Real estate secured loans | 663,911 | 19,343 | 2,239 | 685,493 | ||||||||||||
Other consumer loans | 132,818 | 11,160 | 1,101 | 145,079 | ||||||||||||
Total consumer loans | 796,729 | 30,503 | 3,340 | 830,572 | ||||||||||||
Total gross loans | $ | 8,428,907 | $ | 557,062 | $ | 38,279 | $ | 9,024,248 |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | ||||||
Loans modified in TDRs: | ||||||||
Commercial loans: | ||||||||
Software | $ | 1,751 | $ | 2,021 | ||||
Hardware | 19,749 | 20,514 | ||||||
Venture capital/ private equity | 821 | — | ||||||
Life science | 454 | — | ||||||
Premium wine | 2,561 | 2,593 | ||||||
Other | 5,749 | 5,900 | ||||||
Total commercial loans | 31,085 | 31,028 | ||||||
Consumer loans: | ||||||||
Real estate secured loans | 1,753 | 2,199 | ||||||
Other consumer loans | 1,092 | 1,101 | ||||||
Total consumer loans | 2,845 | 3,300 | ||||||
Total | $ | 33,930 | $ | 34,328 |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Loans modified in TDRs during the period: | ||||||||
Commercial loans: | ||||||||
Software | $ | — | $ | 600 | ||||
Venture capital/ private equity | 821 | — | ||||||
Life science | 454 | — | ||||||
Premium wine | — | 405 | ||||||
Other | — | 2,416 | ||||||
Total commercial loans | 1,275 | 3,421 | ||||||
Consumer loans: | ||||||||
Real estate secured loans | — | 249 | ||||||
Other consumer loans | 100 | 36 | ||||||
Total consumer loans | 100 | 285 | ||||||
Total loans modified in TDR’s during the period (1) | $ | 1,375 | $ | 3,706 |
(1) | During the three months ended March 31, 2013, we had no partial charge-offs of loans classified as TDRs. There were partial charge-offs of $0.8 million on loans classified as TDRs during the three months ended March 31, 2012. |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
TDRs modified within the previous 12 months that defaulted during the period: | ||||||||
Commercial loans: | ||||||||
Software | $ | — | $ | 600 | ||||
Hardware | 125 | — | ||||||
Other | 2,750 | — | ||||||
Total commercial loans | 2,875 | 600 | ||||||
Consumer loans: | ||||||||
Real estate secured loans | 247 | 249 | ||||||
Other consumer loans | — | 36 | ||||||
Total consumer loans | 247 | 285 | ||||||
Total TDRs modified within the previous 12 months that defaulted in the period | $ | 3,122 | $ | 885 |
7. | Short-Term Borrowings and Long-Term Debt |
Carrying Value | ||||||||||||||
(Dollars in thousands) | Maturity | Principal value at March 31, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||
Short-term borrowings: | ||||||||||||||
Federal funds purchased | — | — | — | 160,000 | ||||||||||
Other short-term borrowings | (1) | 7,460 | 7,460 | 6,110 | ||||||||||
Total short-term borrowings | $ | 7,460 | $ | 166,110 | ||||||||||
Long-term debt: | ||||||||||||||
5.375% Senior Notes | September 15, 2020 | $ | 350,000 | $ | 348,048 | $ | 347,995 | |||||||
6.05% Subordinated Notes (2) | June 1, 2017 | 45,964 | 53,993 | 54,571 | ||||||||||
7.0% Junior Subordinated Debentures | October 15, 2033 | 50,000 | 55,153 | 55,196 | ||||||||||
Total long-term debt | $ | 457,194 | $ | 457,762 |
(1) | Represents cash collateral received from our counterparty for our interest rate swap agreement related to our 6.05% Subordinated Notes. |
(2) | At March 31, 2013 and December 31, 2012, included in the carrying value of our 6.05% Subordinated Notes were $8.5 million and $9.0 million, respectively, related to hedge accounting associated with the notes. |
8. | Derivative Financial Instruments |
March 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance Sheet Location | Notional or Contractual Amount | Fair Value | Collateral (1) | Net Exposure (2) | Notional or Contractual Amount | Fair Value | Collateral (1) | Net Exposure (2) | |||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||
Interest rate risks: | ||||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | 45,964 | $ | 8,506 | $ | 7,460 | $ | 1,046 | $ | 45,964 | $ | 9,005 | $ | 6,110 | $ | 2,895 | |||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||
Currency exchange risks: | ||||||||||||||||||||||||||||||||||
Foreign exchange forwards | Other assets | 46,088 | 1,051 | — | 1,051 | 51,010 | 488 | — | 488 | |||||||||||||||||||||||||
Foreign exchange forwards | Other liabilities | 90,536 | (1,423 | ) | — | (1,423 | ) | 102,956 | (1,728 | ) | — | (1,728 | ) | |||||||||||||||||||||
Net exposure | (372 | ) | — | (372 | ) | (1,240 | ) | — | (1,240 | ) | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||
Equity warrant assets | Other assets | 169,303 | 72,333 | — | 72,333 | 164,332 | 74,272 | — | 74,272 | |||||||||||||||||||||||||
Other derivatives: | ||||||||||||||||||||||||||||||||||
Client foreign exchange forwards | Other assets | 425,503 | 12,216 | — | 12,216 | 385,470 | 11,864 | — | 11,864 | |||||||||||||||||||||||||
Client foreign exchange forwards | Other liabilities | 363,247 | (9,605 | ) | — | (9,605 | ) | 356,026 | (9,930 | ) | — | (9,930 | ) | |||||||||||||||||||||
Client foreign currency options | Other assets | 91,765 | 485 | — | 485 | 132,237 | 1,189 | — | 1,189 | |||||||||||||||||||||||||
Client foreign currency options | Other liabilities | 91,765 | (485 | ) | — | (485 | ) | 132,237 | (1,189 | ) | — | (1,189 | ) | |||||||||||||||||||||
Loan conversion options | Other assets | 9,789 | 1,529 | — | 1,529 | 9,782 | 890 | — | 890 | |||||||||||||||||||||||||
Client interest rate derivatives | Other assets | 153,074 | 653 | — | 653 | 144,950 | 558 | — | 558 | |||||||||||||||||||||||||
Client interest rate derivatives | Other liabilities | 153,074 | (691 | ) | — | (691 | ) | 144,950 | (590 | ) | — | (590 | ) | |||||||||||||||||||||
Net exposure | 4,102 | — | 4,102 | 2,792 | — | 2,792 | ||||||||||||||||||||||||||||
Net | $ | 84,569 | $ | 7,460 | $ | 77,109 | $ | 84,829 | $ | 6,110 | $ | 78,719 |
(1) | Cash collateral received from our counterparty for our interest rate swap agreement is recorded as a component of “short-term borrowings” on our consolidated balance sheets. |
(2) | Net exposure for contracts in a gain position reflects the replacement cost in the event of nonperformance by all such counterparties. The credit ratings of our institutional counterparties as of March 31, 2013 remain at investment grade or higher and there were no material changes in their credit ratings for the quarter ended March 31, 2013. |
Three months ended March 31, | ||||||||||
(Dollars in thousands) | Statement of income location | 2013 | 2012 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Interest rate risks: | ||||||||||
Net cash benefit associated with interest rate swaps | Interest expense—borrowings | $ | 634 | $ | 2,229 | |||||
Changes in fair value of interest rate swaps | Net gains on derivative instruments | 60 | 389 | |||||||
Net gains associated with interest rate risk derivatives | $ | 694 | $ | 2,618 | ||||||
Derivatives not designated as hedging instruments: | ||||||||||
Currency exchange risks: | ||||||||||
(Losses) gains on revaluations of foreign currency instruments | Other noninterest income | $ | (7,064 | ) | $ | 1,659 | ||||
Gains (losses) on internal foreign exchange forward contracts, net | Net gains on derivative instruments | 6,200 | (2,051 | ) | ||||||
Net losses associated with currency risk | $ | (864 | ) | $ | (392 | ) | ||||
Other derivative instruments: | ||||||||||
Gains on equity warrant assets | Net gains on derivative instruments | $ | 3,505 | $ | 6,935 | |||||
Gains on client foreign exchange forward contracts, net | Net gains on derivative instruments | $ | 797 | $ | 1,065 | |||||
Net gains (losses) on other derivatives (1) | Net gains on derivative instruments | $ | 478 | $ | (362 | ) |
(1) | Primarily represents the change in fair value of loan conversion options. |
Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements | ||||||||||||||||||||||||
(Dollars in thousands) | Gross Amounts of Recognized Assets | Gross Amounts offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||
Interest rate swaps | $ | 8,506 | $ | — | $ | 8,506 | $ | (1,046 | ) | $ | (7,460 | ) | $ | — | ||||||||||
Foreign exchange forwards | 13,267 | — | 13,267 | (8,364 | ) | — | 4,903 | |||||||||||||||||
Foreign currency options | 485 | — | 485 | (485 | ) | — | — | |||||||||||||||||
Client interest rate derivatives | 653 | — | 653 | (27 | ) | — | 626 | |||||||||||||||||
Total derivative assets: | 22,911 | — | 22,911 | (9,922 | ) | (7,460 | ) | 5,529 | ||||||||||||||||
Reverse repurchase, securities borrowing, and similar arrangements | 338,687 | — | 338,687 | (338,687 | ) | — | — | |||||||||||||||||
Total | $ | 361,598 | $ | — | $ | 361,598 | $ | (348,609 | ) | $ | (7,460 | ) | $ | 5,529 | ||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||
Interest rate swaps | $ | 9,005 | $ | — | $ | 9,005 | $ | (2,895 | ) | $ | (6,110 | ) | $ | — | ||||||||||
Foreign exchange forwards | 12,352 | — | 12,352 | (7,363 | ) | — | 4,989 | |||||||||||||||||
Foreign currency options | 1,189 | — | 1,189 | (218 | ) | — | 971 | |||||||||||||||||
Client interest rate derivatives | 558 | — | 558 | (24 | ) | — | 534 | |||||||||||||||||
Total derivative assets: | 23,104 | — | 23,104 | (10,500 | ) | (6,110 | ) | 6,494 | ||||||||||||||||
Reverse repurchase, securities borrowing, and similar arrangements | 133,357 | — | 133,357 | (133,357 | ) | — | — | |||||||||||||||||
Total | $ | 156,461 | $ | — | $ | 156,461 | $ | (143,857 | ) | $ | (6,110 | ) | $ | 6,494 |
Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements | ||||||||||||||||||||||||
(Dollars in thousands) | Gross Amounts of Recognized Liabilities | Gross Amounts offset in the Statement of Financial Position | Net Amounts of Liabilities Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||
Foreign exchange forwards | $ | 11,028 | $ | — | $ | 11,028 | $ | (4,069 | ) | $ | — | $ | 6,959 | |||||||||||
Foreign currency options | 485 | — | 485 | — | — | 485 | ||||||||||||||||||
Client interest rate derivatives | 691 | — | 691 | (664 | ) | — | 27 | |||||||||||||||||
Total derivative liabilities: | 12,204 | — | 12,204 | (4,733 | ) | — | 7,471 | |||||||||||||||||
Repurchase, securities lending, and similar arrangements | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 12,204 | $ | — | $ | 12,204 | $ | (4,733 | ) | $ | — | $ | 7,471 | |||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||
Foreign exchange forwards | $ | 11,658 | $ | — | $ | 11,658 | $ | (5,720 | ) | $ | — | $ | 5,938 | |||||||||||
Foreign currency options | 1,189 | — | 1,189 | (971 | ) | — | 218 | |||||||||||||||||
Client interest rate derivatives | 590 | — | 590 | (567 | ) | — | 23 | |||||||||||||||||
Total derivative assets: | 13,437 | — | 13,437 | (7,258 | ) | — | 6,179 | |||||||||||||||||
Repurchase, securities lending, and similar arrangements | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 13,437 | $ | — | $ | 13,437 | $ | (7,258 | ) | $ | — | $ | 6,179 |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Unused commitment fees | $ | 3,476 | $ | 3,055 | ||||
Fund management fees | 2,769 | 2,828 | ||||||
Service-based fee income | 1,804 | 2,374 | ||||||
(Losses) gains on revaluation of foreign currency instruments (1) | (7,064 | ) | 1,885 | |||||
Currency revaluation (losses) gains (2) | (55 | ) | 615 | |||||
Other | 2,597 | 2,321 | ||||||
Total other noninterest income | $ | 3,527 | $ | 13,078 |
(1) | Represents the revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash. |
(2) | Includes the revaluation of foreign currency denominated assets of certain fund investments. Included in these amounts are gains of $0.2 million and $0.6 million for the three months ended March 31, 2013 and 2012, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests. |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Telephone | $ | 1,557 | $ | 1,784 | ||||
Client services | 1,935 | 1,253 | ||||||
Data processing services | 1,912 | 1,405 | ||||||
Tax credit fund amortization | 1,317 | 1,058 | ||||||
Postage and supplies | 538 | 625 | ||||||
Dues and publications | 458 | 474 | ||||||
Other | 2,218 | 1,208 | ||||||
Total other noninterest expense | $ | 9,935 | $ | 7,807 |
10. | Segment Reporting |
• | Global Commercial Bank provides solutions to the financial needs of commercial clients through lending, deposit products, cash management services, and global banking and trade products and services. It also serves the needs of our non-U.S. clients with global banking products, including loans, deposits and global finance, in key foreign entrepreneurial markets, where applicable. Our Global Commercial Bank segment is comprised of results from our Commercial Bank, and also includes SVB Specialty Lending, SVB Analytics and our Debt Fund Investments. (For further description of these operating segments, refer to Note 20—“Segment Reporting” under Part II, Item 8 of our 2012 Form 10-K.) |
• | SVB Private Bank provides banking products and a range of credit services primarily to venture capital/private equity professionals using both long-term secured and short-term unsecured lines of credit. |
• | SVB Capital is the venture capital investment arm of SVBFG, which focuses primarily on funds management. SVB Capital manages funds (primarily venture capital funds) on behalf of third party limited partners and SVB Financial Group. The SVB Capital family of funds is comprised of funds of funds and direct venture funds. SVB Capital generates income for the Company primarily through management fees, carried interest arrangements and returns through the Company’s investments in the funds. |
(Dollars in thousands) | Global Commercial Bank (1) | SVB Private Bank | SVB Capital (1) | Other Items | Total | |||||||||||||||
Three months ended March 31, 2013 | ||||||||||||||||||||
Net interest income | $ | 148,936 | $ | 6,104 | $ | 1 | $ | 8,128 | $ | 163,169 | ||||||||||
(Provision for) reduction of loan losses | (6,207 | ) | 394 | — | — | (5,813 | ) | |||||||||||||
Noninterest income | 46,541 | 234 | 5,441 | 26,388 | 78,604 | |||||||||||||||
Noninterest expense (2) | (105,578 | ) | (3,461 | ) | (2,386 | ) | (37,589 | ) | (149,014 | ) | ||||||||||
Income (loss) before income tax expense (3) | $ | 83,692 | $ | 3,271 | $ | 3,056 | $ | (3,073 | ) | $ | 86,946 | |||||||||
Total average loans, net of unearned income | $ | 7,868,587 | $ | 844,807 | $ | — | $ | (32,477 | ) | $ | 8,680,917 | |||||||||
Total average assets (4) | 20,463,477 | 853,932 | 238,743 | 758,407 | 22,314,559 | |||||||||||||||
Total average deposits | 18,302,877 | 470,673 | — | 11,963 | 18,785,513 | |||||||||||||||
Three months ended March 31, 2012 | ||||||||||||||||||||
Net interest income | $ | 143,264 | $ | 4,965 | $ | 7 | $ | 2,701 | $ | 150,937 | ||||||||||
Provision for loan losses | (13,236 | ) | (1,293 | ) | — | — | (14,529 | ) | ||||||||||||
Noninterest income | 39,928 | 157 | 3,587 | 15,621 | 59,293 | |||||||||||||||
Noninterest expense (2) | (96,443 | ) | (3,126 | ) | (2,536 | ) | (29,907 | ) | (132,012 | ) | ||||||||||
Income before income tax expense (3) | $ | 73,513 | $ | 703 | $ | 1,058 | $ | (11,585 | ) | $ | 63,689 | |||||||||
Total average loans, net of unearned income | $ | 6,031,356 | $ | 737,968 | $ | — | $ | 35,024 | $ | 6,804,348 | ||||||||||
Total average assets (4) | 18,556,741 | 741,962 | 260,127 | 673,713 | 20,232,543 | |||||||||||||||
Total average deposits | 16,702,114 | 240,500 | — | 23,149 | 16,965,763 |
(1) | Global Commercial Bank’s and SVB Capital’s components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. |
(2) | The Global Commercial Bank segment includes direct depreciation and amortization of $5.0 million and $3.4 million for the three months ended March 31, 2013 and 2012, respectively. |
(3) | The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates. |
(4) | Total average assets equals the greater of total average assets or the sum of total liabilities and total stockholders’ equity for each segment. |
11. | Off-Balance Sheet Arrangements, Guarantees and Other Commitments |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | ||||||
Loan commitments available for funding: (1) | ||||||||
Fixed interest rate commitments | $ | 830,278 | $ | 862,120 | ||||
Variable interest rate commitments | 7,504,108 | 6,906,580 | ||||||
Total loan commitments available for funding | 8,334,386 | 7,768,700 | ||||||
Commercial and standby letters of credit (2) | 835,951 | 842,091 | ||||||
Total unfunded credit commitments | $ | 9,170,337 | $ | 8,610,791 | ||||
Commitments unavailable for funding (3) | $ | 1,371,135 | $ | 1,315,072 | ||||
Maximum lending limits for accounts receivable factoring arrangements (4) | 897,344 | 880,057 | ||||||
Reserve for unfunded credit commitments (5) | 24,300 | 22,299 |
(1) | Represents commitments which are available for funding, due to clients meeting all collateral, compliance and financial covenants required under loan commitment agreements. |
(2) | See below for additional information on our commercial and standby letters of credit. |
(3) | Represents commitments which are currently unavailable for funding, due to clients failing to meet all collateral, compliance and financial covenants under loan commitment agreements. |
(4) | We extend credit under accounts receivable factoring arrangements when our clients’ sales invoices are deemed creditworthy under existing underwriting practices. |
(5) | Our reserve for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit. |
(Dollars in thousands) | Expires In One Year or Less | Expires After One Year | Total Amount Outstanding | Maximum Amount of Future Payments | ||||||||||||
Financial standby letters of credit | $ | 713,950 | $ | 55,950 | $ | 769,900 | $ | 769,900 | ||||||||
Performance standby letters of credit | 48,651 | 9,600 | 58,251 | 58,251 | ||||||||||||
Commercial letters of credit | 7,800 | — | 7,800 | 7,800 | ||||||||||||
Total | $ | 770,401 | $ | 65,550 | $ | 835,951 | $ | 835,951 |
Our Ownership in Limited Partnership (Dollars in thousands) | SVBFG Capital Commitments | SVBFG Unfunded Commitments | SVBFG Ownership of each Fund | ||||||||
Silicon Valley BancVentures, LP | $ | 6,000 | $ | 270 | 10.7 | % | |||||
SVB Capital Partners II, LP (1) | 1,200 | 162 | 5.1 | ||||||||
SVB Capital Shanghai Yangpu Venture Capital Fund | 934 | 161 | 6.8 | ||||||||
SVB Strategic Investors Fund, LP | 15,300 | 688 | 12.6 | ||||||||
SVB Strategic Investors Fund II, LP | 15,000 | 1,050 | 8.6 | ||||||||
SVB Strategic Investors Fund III, LP | 15,000 | 2,063 | 5.9 | ||||||||
SVB Strategic Investors Fund IV, LP | 12,239 | 3,427 | 5.0 | ||||||||
Strategic Investors Fund V Funds | 1,000 | 833 | Various | ||||||||
Strategic Investors Fund VI Funds | 500 | 500 | Various | ||||||||
SVB Capital Preferred Return Fund, LP | 12,688 | — | 20.0 | ||||||||
SVB Capital—NT Growth Partners, LP | 24,670 | 1,340 | 33.0 | ||||||||
Other private equity fund (2) | 9,338 | — | 58.2 | ||||||||
Partners for Growth, LP | 25,000 | 9,750 | 50.0 | ||||||||
Partners for Growth II, LP | 15,000 | 4,950 | 24.2 | ||||||||
Gold Hill Venture Lending 03, LP (3) | 20,000 | — | 9.3 | ||||||||
Other fund investments (4) | 335,609 | 65,132 | Various | ||||||||
Total | $ | 509,478 | $ | 90,326 |
(1) | Our ownership includes direct ownership of 1.3 percent and indirect ownership interest of 3.8 percent through our investment in SVB Strategic Investors Fund II, LP. |
(2) | Our ownership includes direct ownership of 41.5 percent and indirect ownership interests of 12.6 percent and 4.1 percent in the fund through our ownership interest of SVB Capital - NT Growth Partners, LP and SVB Capital Preferred Return Fund, LP, respectively. |
(3) | Our ownership includes direct ownership of 4.8 percent and indirect ownership interest of 4.5 percent through GHLLC. |
(4) | Represents commitments to 317 funds (primarily venture capital funds) where our ownership interest is generally less than 5 percent of the voting interests of each such fund. |
Limited Partnership (Dollars in thousands) | Unfunded Commitments | ||
SVB Strategic Investors Fund, LP | $ | 2,298 | |
SVB Strategic Investors Fund II, LP | 8,475 | ||
SVB Strategic Investors Fund III, LP | 33,462 | ||
SVB Strategic Investors Fund IV, LP | 83,897 | ||
Strategic Investors Fund V Funds | 282,046 | ||
Strategic Investors Fund VI Funds | 3,500 | ||
SVB Capital Preferred Return Fund, LP | 14,286 | ||
SVB Capital—NT Growth Partners, LP | 16,289 | ||
Other private equity fund | 4,229 | ||
Total | $ | 448,482 |
12. | Income Taxes |
13. | Fair Value of Financial Instruments |
(Dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at March 31, 2013 | ||||||||||||
Assets | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. treasury securities | $ | — | $ | 100,046 | $ | — | $ | 100,046 | ||||||||
U.S. agency debentures | — | 3,483,903 | — | 3,483,903 | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | — | 1,347,830 | — | 1,347,830 | ||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate | — | 3,855,067 | — | 3,855,067 | ||||||||||||
Agency-issued collateralized mortgage obligations - variable rate | — | 1,602,853 | — | 1,602,853 | ||||||||||||
Agency-issued commercial mortgage-backed securities | — | 419,335 | — | 419,335 | ||||||||||||
Municipal bonds and notes | — | 90,503 | — | 90,503 | ||||||||||||
Equity securities | 5,879 | 2,747 | — | 8,626 | ||||||||||||
Total available-for-sale securities | 5,879 | 10,902,284 | — | 10,908,163 | ||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Venture capital and private equity fund investments | — | — | 701,076 | 701,076 | ||||||||||||
Other venture capital investments | — | — | 124,786 | 124,786 | ||||||||||||
Total non-marketable securities (fair value accounting) | — | — | 825,862 | 825,862 | ||||||||||||
Other assets: | ||||||||||||||||
Marketable securities | 913 | 9,265 | — | 10,178 | ||||||||||||
Interest rate swaps | — | 8,506 | — | 8,506 | ||||||||||||
Foreign exchange forward and option contracts | — | 13,752 | — | 13,752 | ||||||||||||
Equity warrant assets | — | 6,287 | 66,046 | 72,333 | ||||||||||||
Loan conversion options | — | 1,529 | — | 1,529 | ||||||||||||
Client interest rate derivatives | — | 653 | — | 653 | ||||||||||||
Total assets (1) | $ | 6,792 | $ | 10,942,276 | $ | 891,908 | $ | 11,840,976 | ||||||||
Liabilities | ||||||||||||||||
Foreign exchange forward and option contracts | $ | — | $ | 11,513 | $ | — | $ | 11,513 | ||||||||
Client interest rate derivatives | — | 691 | — | 691 | ||||||||||||
Total liabilities | $ | — | $ | 12,204 | $ | — | $ | 12,204 |
(1) | Included in Level 1, Level 2, and Level 3 assets are $0.8 million, $8.8 million, and $740 million, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests. |
(Dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2012 | ||||||||||||
Assets | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. treasury securities | $ | — | $ | 25,247 | $ | — | $ | 25,247 | ||||||||
U.S. agency debentures | — | 3,447,628 | — | 3,447,628 | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Agency-issued mortgage-backed securities | — | 1,473,433 | — | 1,473,433 | ||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate | — | 4,103,974 | — | 4,103,974 | ||||||||||||
Agency-issued collateralized mortgage obligations - variable rate | — | 1,772,748 | — | 1,772,748 | ||||||||||||
Agency-issued commercial mortgage-backed securities | — | 422,098 | — | 422,098 | ||||||||||||
Municipal bonds and notes | — | 93,529 | — | 93,529 | ||||||||||||
Equity securities | 4,520 | — | — | 4,520 | ||||||||||||
Total available-for-sale securities | 4,520 | 11,338,657 | — | 11,343,177 | ||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Venture capital and private equity fund investments | — | — | 665,921 | 665,921 | ||||||||||||
Other venture capital investments | — | — | 127,091 | 127,091 | ||||||||||||
Total non-marketable securities (fair value accounting) | — | — | 793,012 | 793,012 | ||||||||||||
Other assets: | ||||||||||||||||
Marketable securities | 1,144 | 9,184 | — | 10,328 | ||||||||||||
Interest rate swaps | — | 9,005 | — | 9,005 | ||||||||||||
Foreign exchange forward and option contracts | — | 13,541 | — | 13,541 | ||||||||||||
Equity warrant assets | — | 8,143 | 66,129 | 74,272 | ||||||||||||
Loan conversion options | — | 890 | — | 890 | ||||||||||||
Client interest rate derivatives | — | 558 | — | 558 | ||||||||||||
Total assets (1) | $ | 5,664 | $ | 11,379,978 | $ | 859,141 | $ | 12,244,783 | ||||||||
Liabilities | ||||||||||||||||
Foreign exchange forward and option contracts | $ | — | $ | 12,847 | $ | — | $ | 12,847 | ||||||||
Client interest rate derivatives | — | 590 | — | 590 | ||||||||||||
Total liabilities | $ | — | $ | 13,437 | $ | — | $ | 13,437 |
(1) | Included in Level 1, Level 2, and Level 3 assets are $1.1 million, $8.7 million, and $708 million, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests. |
(Dollars in thousands) | Beginning Balance | Total Realized and Unrealized Gains (Losses) Included in Income | Purchases | Sales | Issuances | Distributions and Other Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Ending Balance | |||||||||||||||||||||||||||
Three months ended March 31, 2013 | ||||||||||||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments | $ | 665,921 | $ | 22,510 | $ | 29,744 | $ | — | $ | — | $ | (17,099 | ) | $ | — | $ | — | $ | 701,076 | |||||||||||||||||
Other venture capital investments | 127,091 | 2,188 | 166 | (21 | ) | — | (1,077 | ) | — | (3,561 | ) | 124,786 | ||||||||||||||||||||||||
Total non-marketable securities (fair value accounting) (1) | 793,012 | 24,698 | 29,910 | (21 | ) | — | (18,176 | ) | — | (3,561 | ) | 825,862 | ||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 66,129 | 1,459 | — | (2,250 | ) | 1,926 | 364 | — | (1,582 | ) | 66,046 | |||||||||||||||||||||||||
Total assets | $ | 859,141 | $ | 26,157 | $ | 29,910 | $ | (2,271 | ) | $ | 1,926 | $ | (17,812 | ) | $ | — | $ | (5,143 | ) | $ | 891,908 | |||||||||||||||
Three months ended March 31, 2012 | ||||||||||||||||||||||||||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||||||||||||||||||||||
Venture capital and private equity fund investments | $ | 611,824 | $ | 12,104 | $ | 21,716 | $ | — | $ | — | $ | (25,288 | ) | $ | — | $ | — | $ | 620,356 | |||||||||||||||||
Other venture capital investments | 124,121 | (3,587 | ) | 7,724 | (307 | ) | — | — | — | — | 127,951 | |||||||||||||||||||||||||
Other investments | 987 | 21 | — | — | — | (6 | ) | — | — | 1,002 | ||||||||||||||||||||||||||
Total non-marketable securities (fair value accounting) (1) | 736,932 | 8,538 | 29,440 | (307 | ) | — | (25,294 | ) | — | — | 749,309 | |||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||
Equity warrant assets (2) | 63,030 | 3,795 | — | (3,643 | ) | 2,300 | 1 | — | (266 | ) | 65,217 | |||||||||||||||||||||||||
Total assets | $ | 799,962 | $ | 12,333 | $ | 29,440 | $ | (3,950 | ) | $ | 2,300 | $ | (25,293 | ) | $ | — | $ | (266 | ) | $ | 814,526 |
(1) | Realized and unrealized gains (losses) are recorded on the line items “gains on investment securities, net”, and “other noninterest income”, components of noninterest income. |
(2) | Realized and unrealized gains (losses) are recorded on the line item “gains on derivative instruments, net”, a component of noninterest income. |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Non-marketable securities (fair value accounting): | ||||||||
Venture capital and private equity fund investments | $ | 22,621 | $ | 11,649 | ||||
Other venture capital investments | 526 | (2,610 | ) | |||||
Other investments | — | 21 | ||||||
Total non-marketable securities (fair value accounting) (1) | 23,147 | 9,060 | ||||||
Other assets: | ||||||||
Equity warrant assets (2) | 1,181 | 1,674 | ||||||
Total unrealized gains | $ | 24,328 | $ | 10,734 | ||||
Unrealized gains attributable to noncontrolling interests | $ | 21,187 | $ | 7,242 |
(1) | Unrealized gains (losses) are recorded on the line items “gains on investment securities, net”, and “other noninterest income”, components of noninterest income. |
(2) | Unrealized gains (losses) are recorded on the line item “gains on derivative instruments, net”, a component of noninterest income. |
(Dollars in thousands) | Fair value | Valuation Technique | Significant Unobservable Inputs | Weighted Average | |||||||
March 31, 2013: | |||||||||||
Other venture capital investments (fair value accounting) | $ | 124,786 | Private company equity pricing | (1) | (1 | ) | |||||
Equity warrant assets (private portfolio) | 66,046 | Modifed Black-Scholes option pricing model | Volatility | 42.0 | % | ||||||
Risk-Free interest rate | 0.4 | % | |||||||||
Marketability discount (2) | 22.5 | % | |||||||||
Remaining life assumption (3) | 45.0 | % | |||||||||
December 31, 2012: | |||||||||||
Other venture capital investments (fair value accounting) | 127,091 | Private company equity pricing | (1) | (1 | ) | ||||||
Equity warrant assets (private portfolio) | 66,129 | Modifed Black-Scholes option pricing model | Volatility | 45.2 | % | ||||||
Risk-Free interest rate | 0.4 | % | |||||||||
Marketability discount (2) | 22.5 | % | |||||||||
Remaining life assumption (3) | 45.0 | % |
(1) | In determining the fair value of our other venture capital investment portfolio, we evaluate a variety of factors related to each underlying private portfolio company including, but not limited to, actual and forecasted results, cash position, recent or planned transactions and market comparable companies. Additionally, we have ongoing communication with the portfolio companies and venture capital fund managers, to determine whether there is a material change in fair value. These factors are specific to each portfolio company and a weighted average or range of values of the unobservable inputs is not meaningful. |
(2) | Our marketability discount is applied to all private company warrants to account for a general lack of liquidity due to the private nature of the associated underlying company. The quantitative measure used is based on long-run averages and is influenced over time by various factors, including market conditions. On a quarterly basis, a sensitivity analysis is performed on our marketability discount. |
(3) | We adjust the contractual remaining term of private company warrants based on our best estimate of the actual remaining life, which we determine by utilizing historical data on cancellations and exercises. At March 31, 2013, the weighted average |
Estimated Fair Value | ||||||||||||||||
(Dollars in thousands) | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
March 31, 2013: | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,519,249 | $ | 1,519,249 | $ | — | $ | — | ||||||||
Non-marketable securities (cost and equity method accounting) | 389,926 | — | — | 431,115 | ||||||||||||
Net commercial loans | 7,915,726 | — | — | 8,086,157 | ||||||||||||
Net consumer loans | 816,959 | — | — | 853,520 | ||||||||||||
FHLB and FRB stock | 39,806 | — | — | 39,806 | ||||||||||||
Accrued interest receivable | 64,375 | — | 64,375 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Other short-term borrowings | 7,460 | 7,460 | — | — | ||||||||||||
Non-maturity deposits (1) | 19,137,749 | 19,137,749 | — | — | ||||||||||||
Time deposits | 172,159 | — | 172,054 | — | ||||||||||||
5.375% Senior Notes | 348,048 | — | 390,831 | — | ||||||||||||
6.05% Subordinated Notes (2) | 53,993 | — | 58,390 | — | ||||||||||||
7.0% Junior Subordinated Debentures | 55,153 | — | 53,608 | — | ||||||||||||
Accrued interest payable | 1,967 | — | 1,967 | — | ||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||
Commitments to extend credit | — | — | — | 21,109 | ||||||||||||
December 31, 2012: | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,008,983 | $ | 1,008,983 | $ | — | $ | — | ||||||||
Non-marketable securities (cost and equity method accounting) | 391,253 | — | — | 425,741 | ||||||||||||
Net commercial loans | 8,013,563 | — | — | 8,180,597 | ||||||||||||
Net consumer loans | 822,719 | — | — | 860,772 | ||||||||||||
FHLB and FRB stock | 39,806 | — | — | 39,806 | ||||||||||||
Accrued interest receivable | 64,167 | — | 64,167 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Federal funds purchased | 160,000 | 160,000 | — | — | ||||||||||||
Other short-term borrowings | 6,110 | 6,110 | — | — | ||||||||||||
Non-maturity deposits (1) | 19,021,264 | 19,021,264 | — | — | ||||||||||||
Time deposits | 155,188 | — | 155,027 | — | ||||||||||||
5.375% Senior Notes | 347,995 | — | 393,701 | — | ||||||||||||
6.05% Subordinated Notes (2) | 54,571 | — | 61,639 | — | ||||||||||||
7.0% Junior Subordinated Debentures | 55,196 | — | 51,959 | — | ||||||||||||
Accrued interest payable | 6,494 | — | 6,494 | — | ||||||||||||
Off-balance sheet financial assets: | ||||||||||||||||
Commitments to extend credit | — | — | — | 20,562 |
(1) | Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits. |
(2) | At March 31, 2013 and December 31, 2012, included in the carrying value and estimated fair value of our 6.05% Subordinated Notes was $8.5 million and $9.0 million, respectively, related to hedge accounting associated with the notes. |
(Dollars in thousands) | Carrying Amount | Fair Value | Unfunded Commitments | |||||||||
Non-marketable securities (fair value accounting): | ||||||||||||
Venture capital and private equity fund investments (1) | $ | 701,076 | $ | 701,076 | $ | 448,482 | ||||||
Non-marketable securities (equity method accounting): | ||||||||||||
Other investments (2) | 52,180 | 53,679 | 17,258 | |||||||||
Non-marketable securities (cost method accounting): | ||||||||||||
Venture capital and private equity fund investments (3) | 160,870 | 199,504 | 51,007 | |||||||||
Total | $ | 914,126 | $ | 954,259 | $ | 516,747 |
(1) | Venture capital and private equity fund investments within non-marketable securities (fair value accounting) include investments made by our managed funds of funds and one of our direct venture funds. These investments represent investments in venture capital and private equity funds that invest primarily in U.S. and global technology and life sciences companies. Included in the fair value and unfunded commitments of fund investments under fair value accounting are $624 million and $440 million, respectively, attributable to noncontrolling interests. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of terms of the funds. |
(2) | Other investments within non-marketable securities (equity method accounting) include investments in debt funds and venture capital and private equity fund investments that invest in or lend money to primarily U.S. and global technology and life sciences companies. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds. |
(3) | Venture capital and private equity fund investments within non-marketable securities (cost method accounting) include investments in venture capital and private equity fund investments that invest primarily in U.S. and global technology and life sciences companies. It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of the terms of the funds. |
14. | Legal Matters |
15. | Related Parties |
16. | Subsequent Events |
• | Projections of our net interest income, noninterest income, earnings per share, noninterest expenses (including professional services, compliance, compensation and other costs), cash flows, balance sheet positions, capital expenditures, liquidity and capitalization or other financial items |
• | Descriptions of our strategic initiatives, plans or objectives for future operations, including pending sales or acquisitions |
• | Forecasts of venture capital/private equity funding and investment levels |
• | Forecasts of future interest rates, economic performance, and income from investments |
• | Forecasts of expected levels of provisions for loan losses, loan growth and client funds |
• | Descriptions of assumptions underlying or relating to any of the foregoing |
▪ | Market and economic conditions (including interest rate environment, and levels of public offerings, mergers/acquisitions and venture capital financing activities) and the associated impact on us |
▪ | The sufficiency of our capital, including sources of capital (such as funds generated through retained earnings) and the extent to which capital may be used or required |
▪ | The adequacy of our liquidity position, including sources of liquidity (such as funds generated through retained earnings) |
▪ | The adequacy of our liquidity position, including sources of liquidity (such as funds generated through retained earnings) |
▪ | The realization, timing, valuation and performance of equity or other investments |
▪ | The likelihood that the market value of our impaired investments will recover |
▪ | Our intent to sell our investment securities prior to recovery of our cost basis, or the likelihood of such |
▪ | Expected cash requirements for unfunded commitments to certain investments, including capital calls |
▪ | Our overall management of interest rate risk, including managing the sensitivity of our interest-earning assets and interest-bearing liabilities to interest rates, and the impact to earnings from a change in interest rates |
▪ | The credit quality of our loan portfolio, including levels and trends of nonperforming loans, impaired loans, criticized loans and troubled debt restructurings |
▪ | The adequacy of reserves (including allowance for loan and lease losses) and the appropriateness of our methodology for calculating such reserves |
▪ | The level of loan and deposit balances |
▪ | The level of client investment fees and associated margins |
▪ | The profitability of our products and services |
▪ | Our strategic initiatives, including the expansion of operations in China, India, Israel, the UK and elsewhere (such as establishing our joint venture bank in China and a branch in the UK) |
▪ | The expansion and growth of our noninterest income sources |
▪ | Distributions of venture capital, private equity or debt fund investment proceeds; intentions to sell such fund investments |
▪ | The changes in, or adequacy of, our unrecognized tax benefits and any associated impact |
▪ | The extent to which counterparties, including those to our forward and option contracts, will perform their contractual obligations |
▪ | The effect of application of certain accounting pronouncements |
▪ | The effect of lawsuits and claims |
▪ | Regulatory developments, including the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Act (as defined below), Basel guidelines, and other applicable laws and regulations |
▪ | Continued strong growth in our lending business with record high average loan balances of $8.7 billion, an increase of $1.9 billion, or 27.6 percent. |
▪ | A provision for loan losses of $5.8 million, primarily attributable to net charge-offs of $4.3 million (or 0.20 percent of average total gross loans-annualized). |
▪ | Average deposit balances of $18.8 billion, an increase of $1.8 billion, or 10.7 percent. Average total client funds (including both average on-balance sheet deposits and off-balance sheet client investment funds) were $41.3 billion, an increase of $5.4 billion, or 15.1 percent. |
▪ | Net interest income (fully taxable equivalent basis) of $163.6 million, an increase of $12.2 million, or 8.1 percent, primarily due to an increase in interest income from loans attributable to growth in average balances of $1.9 billion. This increase was partially offset by lower yields earned on our overall loan portfolio. See “Results of Operations–Net Interest Income and Margin” for further details. |
▪ | Our net interest margin decreased by 5 basis points to 3.25 percent, primarily reflective of a 69 basis point decrease in the overall yield of our loan portfolio. This decrease was largely offset by strong growth in average loan balances, which has resulted in a favorable change in our mix of interest-earning assets. |
▪ | Core fee income (deposit service charges, letters of credit fees, credit card fees, client investment fees, and foreign exchange fees) of $36.6 million, an increase of $4.2 million, or 13.0 percent. This increase reflects increased client activity and continued growth in our business, primarily from foreign exchange fees, credit card fees and deposit service charges. See “Results of Operations—Noninterest Income” for a description and reconciliation of core fee income. |
▪ | Gains on investment securities, net of noncontrolling interests, of $5.1 million, compared to $0.5 million. The gains for both periods were primarily from our non-marketable fund investments. See “Results of Operations—Noninterest Income—Gains on Investment Securities, Net” for further details and a reconciliation of gains on investment securities, net of noncontrolling interests. |
▪ | Noninterest expense of $149.0 million, an increase of $17.0 million, or 12.9 percent. The increase was primarily driven by higher compensation expenses as a result of our strong financial performance and an increase in average full-time equivalent employees (“FTEs”), as well as increased premises and equipment and professional services expenses to support continued growth in our business and IT infrastructure initiatives. Average FTEs increased by 6.4 percent to 1,655 FTEs for the three months ended March 31, 2013, compared to 1,556 FTEs for the comparable 2012 period. |
▪ | Overall, our liquidity remained strong based on the attributes of our period end available-for-sale securities portfolio, which totaled $10.9 billion at March 31, 2013. Our available-for-sale securities portfolio continued to be a good source of liquidity as it was invested in high quality investments and generated steady monthly cash flows. Additionally, our available-for-sale securities portfolio continued to provide us with the ability to secure wholesale borrowings, as needed. |
▪ | Overall, SVB Financial and the Bank continued to maintain strong capital positions. All of our capital ratios increased from December 31, 2012 driven by strong quarterly earnings, while risk-weighted assets and average assets remained relatively flat. The Bank's Tier 1 leverage ratio increased by 29 basis points to 7.35 percent at March 31 2013, compared to 7.06 percent at December 31, 2012. |
Three months ended March 31, | ||||||||||||
(Dollars in thousands, except per share data and ratios) | 2013 | 2012 | % Change | |||||||||
Income Statement: | ||||||||||||
Diluted earnings per share | $ | 0.90 | $ | 0.78 | 15.4 | % | ||||||
Net income available to common stockholders | 40,891 | 34,790 | 17.5 | |||||||||
Net interest income | 163,169 | 150,937 | 8.1 | |||||||||
Net interest margin | 3.25 | % | 3.30 | % | (5 | ) | bps | |||||
Provision for loan losses | $ | 5,813 | $ | 14,529 | (60.0 | ) | % | |||||
Noninterest income | 78,604 | 59,293 | 32.6 | |||||||||
Noninterest expense | 149,014 | 132,012 | 12.9 | |||||||||
Non-GAAP noninterest income, net of noncontrolling interest (1) | 56,114 | 51,375 | 9.2 | |||||||||
Non-GAAP noninterest expense, net of noncontrolling interest (2) | 146,154 | 129,194 | 13.1 | |||||||||
Balance Sheet: | ||||||||||||
Average loans, net of unearned income | $ | 8,680,917 | $ | 6,804,348 | 27.6 | % | ||||||
Average noninterest-bearing demand deposits | 13,386,501 | 12,025,997 | 11.3 | |||||||||
Average interest-bearing deposits | 5,399,012 | 4,939,766 | 9.3 | |||||||||
Average total deposits | 18,785,513 | 16,965,763 | 10.7 | |||||||||
Earnings Ratios: | ||||||||||||
Return on average assets (annualized) (3) | 0.74 | % | 0.69 | % | 7.2 | % | ||||||
Return on average SVBFG stockholders’ equity (annualized) (4) | 8.89 | 8.61 | 3.3 | |||||||||
Asset Quality Ratios: | ||||||||||||
Allowance for loan losses as a percentage of total period-end gross loans | 1.26 | % | 1.41 | % | (15 | ) | bps | |||||
Allowance for loan losses for performing loans as a percentage of total gross performing loans | 1.18 | 1.16 | 2 | |||||||||
Gross loan charge-offs as a percentage of average total gross loans (annualized) | 0.26 | 0.41 | (15 | ) | ||||||||
Net loan charge-offs as a percentage of average total gross loans (annualized) | 0.20 | 0.21 | (1 | ) | ||||||||
Capital Ratios: | ||||||||||||
Total risk-based capital ratio | 14.59 | % | 14.30 | % | 29 | bps | ||||||
Tier 1 risk-based capital ratio | 13.30 | 12.91 | 39 | |||||||||
Tier 1 leverage ratio | 8.39 | 8.04 | 35 | |||||||||
Tangible common equity to tangible assets (5) | 8.26 | 7.87 | 39 | |||||||||
Tangible common equity to risk-weighted assets (5) | 13.94 | 13.54 | 40 | |||||||||
Bank total risk-based capital ratio | 13.01 | 12.59 | 42 | |||||||||
Bank tier 1 risk-based capital ratio | 11.70 | 11.16 | 54 | |||||||||
Bank tier 1 leverage ratio | 7.35 | 6.94 | 41 | |||||||||
Bank tangible common equity to tangible assets (5) | 7.62 | 7.16 | 46 | |||||||||
Bank tangible common equity to risk-weighted assets (5) | 12.45 | 11.94 | 51 | |||||||||
Other Ratios: | ||||||||||||
Operating efficiency ratio (6) | 61.52 | % | 62.65 | % | (1.8 | ) | % | |||||
Non-GAAP operating efficiency ratio (2) | 66.53 | % | 63.72 | % | 4.4 | |||||||
Book value per common share (7) | $ | 41.85 | $ | 37.19 | 12.5 | |||||||
Other Statistics: | ||||||||||||
Average full-time equivalent employees | 1,655 | 1,556 | 6.4 | % | ||||||||
Period-end full-time equivalent employees | 1,663 | 1,554 | 7.0 |
(1) | See “Results of Operations–Noninterest Income” for a description and reconciliation of non-GAAP noninterest income. |
(2) | See “Results of Operations–Noninterest Expense” for a description and reconciliation of non-GAAP noninterest expense and non-GAAP operating efficiency ratio. |
(3) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average assets. |
(4) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average SVBFG stockholders’ equity. |
(5) | See “Capital Resources–Capital Ratios” for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets. |
(6) | The operating efficiency ratio is calculated by dividing total noninterest expense by total taxable-equivalent net interest income plus noninterest income. |
(7) | Book value per common share is calculated by dividing total SVBFG stockholders’ equity by total outstanding common shares at period-end. |
2013 Compared to 2012 | ||||||||||||
Three months ended March 31, increase (decrease) due to change in | ||||||||||||
(Dollars in thousands) | Volume | Rate | Total | |||||||||
Interest income: | ||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities | $ | (314 | ) | $ | (5 | ) | $ | (319 | ) | |||
Available-for-sale securities (taxable) | 1,606 | (3,229 | ) | (1,623 | ) | |||||||
Available-for-sale securities (non-taxable) | (134 | ) | (21 | ) | (155 | ) | ||||||
Loans, net of unearned income | 26,984 | (12,701 | ) | 14,283 | ||||||||
Increase (decrease) in interest income, net | 28,142 | (15,956 | ) | 12,186 | ||||||||
Interest expense: | ||||||||||||
NOW deposits | 26 | 12 | 38 | |||||||||
Money market deposits | 396 | 169 | 565 | |||||||||
Money market deposits in foreign offices | (9 | ) | — | (9 | ) | |||||||
Time deposits | 21 | (27 | ) | (6 | ) | |||||||
Sweep deposits in foreign offices | (18 | ) | — | (18 | ) | |||||||
Total increase in deposits expense | 416 | 154 | 570 | |||||||||
Short-term borrowings | 18 | (1 | ) | 17 | ||||||||
5.375% Senior Notes | — | 6 | 6 | |||||||||
Junior Subordinated Debentures | (4 | ) | 5 | 1 | ||||||||
5.70% Senior Notes | (503 | ) | — | (503 | ) | |||||||
6.05% Subordinated Notes | (2 | ) | (12 | ) | (14 | ) | ||||||
Other long-term debt | (69 | ) | — | (69 | ) | |||||||
Total decrease in borrowings expense | (560 | ) | (2 | ) | (562 | ) | ||||||
(Decrease) increase in interest expense, net | (144 | ) | 152 | 8 | ||||||||
Increase (decrease) in net interest income | $ | 28,286 | $ | (16,108 | ) | $ | 12,178 |
• | Interest income for the three months ended March 31, 2013 increased by $12.2 million primarily due to: |
◦ | A $14.3 million increase in interest income on loans to $123.7 million for the three months ended March 31, 2013, compared to $109.5 million for the comparable 2012 period. This increase was reflective of an increase in average loan balances of $1.9 billion, partially offset by a decrease of 69 basis points in the overall yield on our loan portfolio. The decrease in yields was reflective of a continued change in the mix of our loans that are indexed to the national Prime rate instead of the SVB Prime rate. Additionally, loan yields were impacted by our success in growing our later stage client portfolio, which typically is benchmarked to three-month LIBOR and bears lower credit risk and therefore lower relative yield. |
◦ | A $1.8 million decrease in interest income on available-for-sale securities to $47.0 million for the three months ended March 31, 2013, compared to $48.8 million for the comparable 2012 period. The decrease was reflective of a decrease of 12 basis points in overall yields, partially offset by an increase related to higher average balances of $390 million. The decrease of 12 basis points in overall yields was comprised of a 19 basis points decrease in coupon yields, partially offset by a 7 basis points increase from lower premium amortization expense. The decrease in coupon yields was driven by paydowns of higher-yielding securities being reinvested in lower-yielding securities in the low interest rate environment. Premium amortization |
• | Interest expense for the three months ended March 31, 2013 remained flat at $7.8 million. The items impacting interest expense were as follows: |
◦ | An increase in interest expense from interest-bearing deposits of $0.6 million, mainly attributable to an increase of $459 million in average interest-bearing deposits. |
◦ | A decrease in interest expense of $0.6 million related to our long-term debt, mainly attributable to a decrease of $0.5 million related to our 5.70% Senior Notes, which matured on June 1, 2012. |
Three months ended March 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1) | $ | 822,418 | $ | 719 | 0.35 | % | $ | 1,171,410 | $ | 1,038 | 0.36 | % | ||||||||||
Available-for-sale securities: (2) | ||||||||||||||||||||||
Taxable | 10,803,735 | 45,752 | 1.72 | 10,405,476 | 47,375 | 1.83 | ||||||||||||||||
Non-taxable (3) | 83,811 | 1,229 | 5.95 | 92,236 | 1,384 | 6.03 | ||||||||||||||||
Total loans, net of unearned income (4) (5) | 8,680,917 | 123,744 | 5.78 | 6,804,348 | 109,461 | 6.47 | ||||||||||||||||
Total interest-earning assets | 20,390,881 | 171,444 | 3.41 | 18,473,470 | 159,258 | 3.47 | ||||||||||||||||
Cash and due from banks | 279,179 | 318,574 | ||||||||||||||||||||
Allowance for loan losses | (115,486 | ) | (93,840 | ) | ||||||||||||||||||
Other assets (6) | 1,759,985 | 1,534,339 | ||||||||||||||||||||
Total assets | $ | 22,314,559 | $ | 20,232,543 | ||||||||||||||||||
Funding sources: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
NOW deposits | $ | 135,436 | $ | 117 | 0.35 | % | $ | 104,498 | $ | 79 | 0.30 | % | ||||||||||
Money market deposits | 3,043,021 | 1,495 | 0.20 | 2,470,781 | 930 | 0.15 | ||||||||||||||||
Money market deposits in foreign offices | 115,659 | 28 | 0.10 | 152,582 | 37 | 0.10 | ||||||||||||||||
Time deposits | 172,401 | 173 | 0.41 | 152,621 | 179 | 0.47 | ||||||||||||||||
Sweep deposits in foreign offices | 1,932,495 | 238 | 0.05 | 2,059,284 | 256 | 0.05 | ||||||||||||||||
Total interest-bearing deposits | 5,399,012 | 2,051 | 0.15 | 4,939,766 | 1,481 | 0.12 | ||||||||||||||||
Short-term borrowings | 74,939 | 28 | 0.15 | 27,415 | 11 | 0.16 | ||||||||||||||||
5.375% Senior Notes | 348,013 | 4,821 | 5.62 | 347,810 | 4,815 | 5.57 | ||||||||||||||||
Junior Subordinated Debentures | 55,181 | 832 | 6.11 | 55,357 | 831 | 6.04 | ||||||||||||||||
5.70% Senior Notes | — | — | — | 143,485 | 503 | 1.41 | ||||||||||||||||
6.05% Subordinated Notes | 54,282 | 113 | 0.84 | 55,252 | 127 | 0.92 | ||||||||||||||||
Other long-term debt | — | — | — | 1,440 | 69 | 19.27 | ||||||||||||||||
Total interest-bearing liabilities | 5,931,427 | 7,845 | 0.54 | 5,570,525 | 7,837 | 0.57 | ||||||||||||||||
Portion of noninterest-bearing funding sources | 14,459,454 | 12,902,945 | ||||||||||||||||||||
Total funding sources | 20,390,881 | 7,845 | 0.16 | 18,473,470 | 7,837 | 0.17 | ||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||
Demand deposits | 13,386,501 | 12,025,997 | ||||||||||||||||||||
Other liabilities | 359,913 | 326,679 | ||||||||||||||||||||
SVBFG stockholders’ equity | 1,866,310 | 1,624,256 | ||||||||||||||||||||
Noncontrolling interests | 770,408 | 685,086 | ||||||||||||||||||||
Portion used to fund interest-earning assets | (14,459,454 | ) | (12,902,945 | ) | ||||||||||||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity | $ | 22,314,559 | $ | 20,232,543 | ||||||||||||||||||
Net interest income and margin | $ | 163,599 | 3.25 | % | $ | 151,421 | 3.30 | % | ||||||||||||||
Total deposits | $ | 18,785,513 | $ | 16,965,763 | ||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||
Adjustments for taxable equivalent basis | (430 | ) | (484 | ) | ||||||||||||||||||
Net interest income, as reported | $ | 163,169 | $ | 150,937 |
(1) | Includes average interest-earning deposits in other financial institutions of $176 million and $332 million for the three months ended March 31, 2013 and 2012, respectively. For the three months ended March 31, 2013 and 2012, balances also include $375 million and $594 million, respectively, deposited at the FRB, earning interest at the Federal Funds target rate. |
(2) | Yields on available-for-sale securities are based on amortized cost, and therefore do not give effect to unrealized changes in fair value that are reflected in other comprehensive income. |
(3) | Interest income on non-taxable available-for-sale securities is presented on a fully taxable-equivalent basis using the federal statutory income tax rate of 35.0 percent for all periods presented. |
(4) | Nonaccrual loans are reflected in the average balances of loans. |
(5) | Interest income includes loan fees of $16.8 million and $17.1 million for the three months ended March 31, 2013 and 2012, respectively. |
(6) | Average investment securities of $1.4 billion and $1.2 billion for the three months ended March 31, 2013 and 2012, respectively, were classified as other assets as they were noninterest-earning assets. These investments primarily consisted of non-marketable securities. |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Allowance for loan losses, beginning balance | $ | 110,651 | $ | 89,947 | ||||
Provision for loan losses | 5,813 | 14,529 | ||||||
Gross loan charge-offs | (5,626 | ) | (6,990 | ) | ||||
Loan recoveries | 1,367 | 3,436 | ||||||
Allowance for loan losses, ending balance | $ | 112,205 | $ | 100,922 | ||||
Provision for loan losses as a percentage of total gross loans (annualized) | 0.26 | % | 0.81 | % | ||||
Gross loan charge-offs as a percentage of average total gross loans (annualized) | 0.26 | 0.41 | ||||||
Net loan charge-offs as a percentage of average total gross loans (annualized) | 0.20 | 0.21 | ||||||
Allowance for loan losses as a percentage of period-end total gross loans | 1.26 | 1.41 | ||||||
Period-end total gross loans | $ | 8,922,829 | $ | 7,180,779 | ||||
Average total gross loans | 8,755,699 | 6,861,122 |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Core fee income: | |||||||||||
Foreign exchange fees | $ | 13,448 | $ | 12,103 | 11.1 | % | |||||
Deposit service charges | 8,793 | 8,096 | 8.6 | ||||||||
Credit card fees | 7,448 | 5,668 | 31.4 | ||||||||
Letters of credit and standby letters of credit income | 3,435 | 3,636 | (5.5 | ) | |||||||
Client investment fees | 3,475 | 2,897 | 20.0 | ||||||||
Total core fee income (1) | 36,599 | 32,400 | 13.0 | ||||||||
Gains on investment securities, net | 27,438 | 7,839 | NM | ||||||||
Gains on derivative instruments, net | 11,040 | 5,976 | 84.7 | ||||||||
Other | 3,527 | 13,078 | (73.0 | ) | |||||||
Total noninterest income | $ | 78,604 | $ | 59,293 | 32.6 |
(1) | The following table provides a reconciliation GAAP noninterest income to non-GAAP core fee income: |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
GAAP noninterest income (as reported) | $ | 78,604 | $ | 59,293 | 32.6 | % | |||||
Less: gains on investment securities, net | 27,438 | 7,839 | NM | ||||||||
Less: gains on derivative instruments, net | 11,040 | 5,976 | 84.7 | ||||||||
Less: other noninterest income | 3,527 | 13,078 | (73.0 | ) | |||||||
Non-GAAP core fee income | $ | 36,599 | $ | 32,400 | 13.0 |
Three months ended March 31, | |||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
GAAP noninterest income (as reported) | $ | 78,604 | $ | 59,293 | 32.6 | % | |||||
Less: income attributable to noncontrolling interests, including carried interest | 22,490 | 7,918 | 184.0 | ||||||||
Non-GAAP noninterest income, net of noncontrolling interests | $ | 56,114 | $ | 51,375 | 9.2 |
• | Gains of $2.4 million from our managed funds, primarily related to unrealized valuation increases and carried interest from three of our funds of funds. |
• | Gains of $1.8 million from our investments in debt funds, driven by valuation increases from the investments within the funds. |
(Dollars in thousands) | Managed Funds of Funds | Managed Direct Venture Funds | Debt Funds | Available- For-Sale Securities | Strategic and Other Investments | Total | ||||||||||||||||||
Three months ended March 31, 2013 | ||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 22,802 | $ | 1,856 | $ | 1,753 | $ | (45 | ) | $ | 1,072 | $ | 27,438 | |||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 20,802 | 1,496 | (2 | ) | — | — | 22,296 | |||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 2,000 | $ | 360 | $ | 1,755 | $ | (45 | ) | $ | 1,072 | $ | 5,142 | |||||||||||
Three months ended March 31, 2012 | ||||||||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 12,305 | $ | (4,682 | ) | $ | 881 | $ | (874 | ) | $ | 209 | $ | 7,839 | ||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 11,282 | (3,959 | ) | 15 | — | — | 7,338 | |||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 1,023 | $ | (723 | ) | $ | 866 | $ | (874 | ) | $ | 209 | $ | 501 |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Equity warrant assets (1) | |||||||||||
Gains on exercises, net | $ | 814 | $ | 2,941 | (72.3 | )% | |||||
Cancellations and expirations | (104 | ) | (569 | ) | (81.7 | ) | |||||
Changes in fair value | 2,795 | 4,563 | (38.7 | ) | |||||||
Net gains on equity warrant assets | 3,505 | 6,935 | (49.5 | ) | |||||||
Gains (losses) on foreign exchange forward contracts, net: | |||||||||||
Gains on client foreign exchange forward contracts, net (2) | 797 | 1,065 | (25.2 | ) | |||||||
Gains (losses) on internal foreign exchange forward contracts, net (3) | 6,200 | (2,051 | ) | NM | |||||||
Total gains (losses) on foreign exchange forward contracts, net | 6,997 | (986 | ) | NM | |||||||
Change in fair value of interest rate swaps | 60 | 389 | (84.6 | ) | |||||||
Net gains (losses) on other derivatives (4) | 478 | (362 | ) | NM | |||||||
Gains on derivative instruments, net | $ | 11,040 | $ | 5,976 | 84.7 |
(1) | At March 31, 2013, we held warrants in 1,282 companies, compared to 1,192 companies at March 31, 2012. |
(2) | Represents the net gains for foreign exchange forward contracts executed on behalf of clients. |
(3) | Represents the change in the fair value of foreign exchange forward contracts used to economically reduce our foreign exchange exposure related to certain foreign currency denominated loans. |
(4) | Primarily represents the change in fair value of loan conversion options held by SVB Financial. As of March 31, 2013, the loan conversion options related to five clients. |
• | Net gains of $6.2 million on foreign exchange forward contracts hedging certain of our foreign currency denominated loans for the three months ended March 31, 2013, compared to net losses of $2.1 million for the comparable 2012 period. The net gains of $6.2 million for the three months ended March 31, 2013 were primarily attributable to the strengthening of the U.S. Dollar against the Euro and Pound Sterling. These gains were largely offset by net losses of $7.1 million from the revaluation of foreign currency denominated instruments that are included in the line item "Other" within noninterest income as noted below. |
• | Net gains on equity warrant assets of $3.5 million for the three months ended March 31, 2013, compared to net gains of $6.9 million for the comparable 2012 period. The decrease was primarily reflective of higher levels of IPO and M&A activity in the first quarter of 2012. |
Three months ended March 31, | |||||||||||
(Dollars in millions) | 2013 | 2012 | % Change | ||||||||
Client directed investment assets (1) | $ | 6,898 | $ | 7,556 | (8.7 | )% | |||||
Client investment assets under management | 11,309 | 9,986 | 13.2 | ||||||||
Sweep money market funds | 4,283 | 1,341 | NM | ||||||||
Total average client investment funds (2) | $ | 22,490 | $ | 18,883 | 19.1 |
(1) | Comprised of mutual funds and Repurchase Agreement Program assets. |
(2) | Client investment funds are maintained at third party financial institutions and are not recorded on our balance sheet. |
(Dollars in millions) | March 31, 2013 | December 31, 2012 | % Change | ||||||
Client directed investment assets | 6,943 | 7,604 | (8.7 | )% | |||||
Client investment assets under management | 11,571 | 10,824 | 6.9 | ||||||
Sweep money market funds | 4,467 | 4,085 | 9.4 | ||||||
Total period-end client investment funds | 22,981 | 22,513 | 2.1 |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Unused commitment fees | $ | 3,476 | $ | 3,055 | 13.8 | % | |||||
Fund management fees | 2,769 | 2,828 | (2.1 | ) | |||||||
Service-based fee income (1) | 1,804 | 2,374 | (24.0 | ) | |||||||
(Losses) gains on revaluation of foreign currency instruments (2) | (7,064 | ) | 1,885 | NM | |||||||
Currency revaluation (losses) gains (3) | (55 | ) | 615 | (108.9 | ) | ||||||
Other | 2,597 | 2,321 | 11.9 | ||||||||
Total other noninterest income | $ | 3,527 | $ | 13,078 | (73.0 | ) |
(1) | Includes income from SVB Analytics. |
(2) | Represents the revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash. |
(3) | Includes the revaluation of foreign currency denominated assets of certain fund investments. Included in these amounts are gains of $0.2 million and $0.6 million for the three months ended March 31, 2013 and 2012, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests. |
• | Net losses on the revaluation of foreign currency instruments of $7.1 million for the three months ended March 31, 2013, compared to net gains of $1.9 million for the comparable 2012 period. The net losses of $7.1 million were largely offset by net gains of $6.2 million on internal foreign exchange forward contracts economically hedging certain of these instruments, which are included within noninterest income on the line item "gains on derivative instruments" as noted above. |
• | Currency revaluation losses of $0.1 million for the three months ended March 31, 2013, compared to net gains $0.6 million for the comparable 2012 period. The net gains of $0.6 million for the three months ended March 31, 2012 were primarily due to the weakening of the U.S. Dollar against the Indian Rupee. |
• | A decrease of $0.6 million in service-based fee income, primarily due to the sale of certain assets related to our equity management services business in the second quarter of 2012. |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Compensation and benefits | $ | 88,704 | $ | 83,737 | 5.9 | % | |||||
Professional services | 17,160 | 14,607 | 17.5 | ||||||||
Premises and equipment | 10,725 | 7,564 | 41.8 | ||||||||
Business development and travel | 8,272 | 7,746 | 6.8 | ||||||||
Net occupancy | 5,767 | 5,623 | 2.6 | ||||||||
FDIC assessments | 3,382 | 2,498 | 35.4 | ||||||||
Correspondent bank fees | 3,055 | 2,688 | 13.7 | ||||||||
Provision for (reduction of) unfunded credit commitments | 2,014 | (258 | ) | NM | |||||||
Other | 9,935 | 7,807 | 27.3 | ||||||||
Total noninterest expense | $ | 149,014 | $ | 132,012 | 12.9 |
Three months ended March 31, | |||||||||||
Non-GAAP operating efficiency ratio, net of noncontrolling interests (Dollars in thousands, except ratios) | 2013 | 2012 | % Change | ||||||||
GAAP noninterest expense | $ | 149,014 | $ | 132,012 | 12.9 | % | |||||
Less: amounts attributable to noncontrolling interests | 2,860 | 2,818 | 1.5 | ||||||||
Non-GAAP noninterest expense, net of noncontrolling interests | $ | 146,154 | $ | 129,194 | 13.1 | ||||||
GAAP taxable equivalent net interest income | $ | 163,599 | $ | 151,421 | 8.0 | ||||||
Less: income attributable to noncontrolling interests | 24 | 43 | (44.2 | ) | |||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests | 163,575 | 151,378 | 8.1 | ||||||||
Non-GAAP noninterest income, net of noncontrolling interests | 56,114 | 51,375 | 9.2 | ||||||||
Non-GAAP taxable equivalent revenue, net of noncontrolling interests | $ | 219,689 | $ | 202,753 | 8.4 | ||||||
Non-GAAP operating efficiency ratio (1) | 66.53 | % | 63.72 | % | 4.4 |
(1) | The non-GAAP operating efficiency ratio is calculated by dividing non-GAAP noninterest expense by non-GAAP total taxable-equivalent income. |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Compensation and benefits | |||||||||||
Salaries and wages | $ | 39,323 | $ | 38,120 | 3.2 | % | |||||
Incentive compensation & ESOP | 22,193 | 21,147 | 4.9 | ||||||||
Other employee benefits (1) | 27,188 | 24,470 | 11.1 | ||||||||
Total compensation and benefits | $ | 88,704 | $ | 83,737 | 5.9 | ||||||
Period-end full-time equivalent employees | 1,663 | 1,554 | 7.0 | ||||||||
Average full-time equivalent employees | 1,655 | 1,556 | 6.4 |
(1) | Other employee benefits includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), warrant and retention plans, agency fees and other employee related expenses. |
• | An increase of $2.7 million in other employee benefits, primarily due to an increase in the number of average FTEs, as well as an increase in group health and life insurance expense. Average FTEs increased by 99 to 1,655 FTEs for the three months ended March 31, 2013, compared to 1,556 FTEs for the comparable 2012 period. The increase in headcount was primarily to support our product development, operational and sales and advisory teams, as well as to support our commercial banking operations and initiatives. |
• | An increase of $2.2 million in total salaries and wages, incentive compensation and ESOP expenses, primarily due to an increase in the number of average FTEs. |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Telephone | $ | 1,557 | $ | 1,784 | (12.7 | )% | |||||
Client services | 1,935 | 1,253 | 54.4 | ||||||||
Data processing services | 1,912 | 1,405 | 36.1 | ||||||||
Tax credit fund amortization | 1,317 | 1,058 | 24.5 | ||||||||
Postage and supplies | 538 | 625 | (13.9 | ) | |||||||
Dues and publications | 458 | 474 | (3.4 | ) | |||||||
Other | 2,218 | 1,208 | 83.6 | ||||||||
Total other noninterest expense | $ | 9,935 | $ | 7,807 | 27.3 |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Net interest income (1) | $ | (24 | ) | $ | (43 | ) | (44.2 | )% | |||
Noninterest income (1) | (23,288 | ) | (6,632 | ) | NM | ||||||
Noninterest expense (1) | 2,860 | 2,818 | 1.5 | ||||||||
Carried interest (2) | 798 | (1,286 | ) | (162.1 | ) | ||||||
Net income attributable to noncontrolling interests | $ | (19,654 | ) | $ | (5,143 | ) | NM |
(1) | Represents noncontrolling interests’ share in net interest income, noninterest income and noninterest expense. |
(2) | Represents the preferred allocation of income earned by the general partners or limited partners of certain consolidated funds. |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Net interest income | $ | 148,936 | $ | 143,264 | 4.0 | % | |||||
Provision for loan losses | (6,207 | ) | (13,236 | ) | (53.1 | ) | |||||
Noninterest income | 46,541 | 39,928 | 16.6 | ||||||||
Noninterest expense | (105,578 | ) | (96,443 | ) | 9.5 | ||||||
Income before income tax expense | $ | 83,692 | $ | 73,513 | 13.8 | ||||||
Total average loans, net of unearned income | $ | 7,868,587 | $ | 6,031,356 | 30.5 | ||||||
Total average assets | 20,463,477 | 18,556,741 | 10.3 | ||||||||
Total average deposits | 18,302,877 | 16,702,114 | 9.6 |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Net interest income | $ | 6,104 | $ | 4,965 | 22.9 | % | |||||
Reduction of (provision for) loan losses | 394 | (1,293 | ) | (130.5 | ) | ||||||
Noninterest income | 234 | 157 | 49.0 | ||||||||
Noninterest expense | (3,461 | ) | (3,126 | ) | 10.7 | ||||||
Income before income tax expense | $ | 3,271 | $ | 703 | NM | ||||||
Total average loans, net of unearned income | $ | 844,807 | $ | 737,968 | 14.5 | ||||||
Total average assets | 853,932 | 741,962 | 15.1 | ||||||||
Total average deposits | 470,673 | 240,500 | 95.7 |
Three months ended March 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | % Change | ||||||||
Net interest income | $ | 1 | $ | 7 | (85.7 | )% | |||||
Noninterest income | 5,441 | 3,587 | 51.7 | ||||||||
Noninterest expense | (2,386 | ) | (2,536 | ) | (5.9 | ) | |||||
Income before income tax expense | $ | 3,056 | $ | 1,058 | 188.8 | ||||||
Total average assets | $ | 238,743 | $ | 260,127 | (8.2 | ) |
• | Net gains on investment securities of $3.0 million for the three months ended March 31, 2013, compared to net gains of $0.6 million for the comparable 2012 period. The net gains on investment securities of $3.0 million for the three months ended March 31, 2013 were primarily driven by unrealized valuation increases and carried interest from three of our managed funds of funds. |
• | Fund management fees of $2.8 million for both the three months ended March 31, 2013 and 2012. |
March 31, 2013 | December 31, 2012 | |||||||||||||||
(Dollars in thousands) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||
Non-marketable securities (fair value accounting): | ||||||||||||||||
Venture capital and private equity fund investments (1) | $ | 701,076 | $ | 77,282 | $ | 665,921 | $ | 75,893 | ||||||||
Other venture capital investments (2) | 124,786 | 8,647 | 127,091 | 8,962 | ||||||||||||
Non-marketable securities (equity method accounting): | ||||||||||||||||
Other investments | 140,607 | 140,607 | 139,330 | 139,330 | ||||||||||||
Low income housing tax credit funds | 69,263 | 69,263 | 70,318 | 70,318 | ||||||||||||
Non-marketable securities (cost method accounting): | ||||||||||||||||
Venture capital and private equity fund investments | 160,870 | 160,870 | 161,884 | 161,884 | ||||||||||||
Other investments | 19,186 | 19,186 | 19,721 | 19,721 | ||||||||||||
Total non-marketable securities | $ | 1,215,788 | $ | 475,855 | $ | 1,184,265 | $ | 476,108 |
(1) | The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at March 31, 2013 and December 31, 2012: |
March 31, 2013 | December 31, 2012 | |||||||||||||||
(Dollars in thousands) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||
SVB Strategic Investors Fund, LP | $ | 32,142 | $ | 4,037 | $ | 32,850 | $ | 4,126 | ||||||||
SVB Strategic Investors Fund II, LP | 92,834 | 7,957 | 91,294 | 7,825 | ||||||||||||
SVB Strategic Investors Fund III, LP | 212,392 | 12,469 | 209,696 | 12,311 | ||||||||||||
SVB Strategic Investors Fund IV, LP | 189,369 | 9,468 | 169,931 | 8,497 | ||||||||||||
Strategic Investors Fund V Funds | 51,985 | 149 | 40,622 | 112 | ||||||||||||
SVB Capital Preferred Return Fund, LP | 54,919 | 12,953 | 53,643 | 12,652 | ||||||||||||
SVB Capital—NT Growth Partners, LP | 59,835 | 23,729 | 60,120 | 23,842 | ||||||||||||
SVB Capital Partners II, LP | 1,138 | 58 | 1,303 | 66 | ||||||||||||
Other private equity fund | 6,462 | 6,462 | 6,462 | 6,462 | ||||||||||||
Total venture capital and private equity fund investments | $ | 701,076 | $ | 77,282 | $ | 665,921 | $ | 75,893 |
(2) | The following table shows the amounts of other venture capital investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at March 31, 2013 and December 31, 2012: |
March 31, 2013 | December 31, 2012 | |||||||||||||||
(Dollars in thousands) | Carrying value (as reported) | Amount attributable to SVBFG | Carrying value (as reported) | Amount attributable to SVBFG | ||||||||||||
Silicon Valley BancVentures, LP | $ | 39,971 | $ | 4,275 | $ | 43,493 | $ | 4,652 | ||||||||
SVB Capital Partners II, LP | 80,966 | 4,112 | 79,761 | 4,051 | ||||||||||||
SVB Capital Shanghai Yangpu Venture Capital Fund | 3,849 | 260 | 3,837 | 259 | ||||||||||||
Total other venture capital investments | $ | 124,786 | $ | 8,647 | $ | 127,091 | $ | 8,962 |
March 31, 2013 | December 31, 2012 | |||||||||||||
(Dollars in thousands) | Amount | Percentage | Amount | Percentage | ||||||||||
Commercial loans: | ||||||||||||||
Software | $ | 3,490,963 | 39.1 | % | $ | 3,293,899 | 36.5 | % | ||||||
Hardware | 1,233,181 | 13.8 | 1,129,484 | 12.5 | ||||||||||
Venture capital/private equity | 1,335,561 | 15.0 | 1,749,903 | 19.4 | ||||||||||
Life science | 1,028,275 | 11.5 | 1,076,792 | 11.9 | ||||||||||
Premium wine | 140,439 | 1.6 | 144,937 | 1.6 | ||||||||||
Other | 345,630 | 3.9 | 318,588 | 3.5 | ||||||||||
Total commercial loans | 7,574,049 | 84.9 | 7,713,603 | 85.5 | ||||||||||
Real estate secured loans: | ||||||||||||||
Premium wine | 465,947 | 5.2 | 414,347 | 4.6 | ||||||||||
Consumer loans | 724,849 | 8.1 | 685,493 | 7.6 | ||||||||||
Total real estate secured loans | 1,190,796 | 13.3 | 1,099,840 | 12.2 | ||||||||||
Construction loans | 58,726 | 0.7 | 65,726 | 0.7 | ||||||||||
Consumer loans | 99,258 | 1.1 | 145,079 | 1.6 | ||||||||||
Total gross loans | $ | 8,922,829 | 100.0 | % | $ | 9,024,248 | 100.0 | % |
March 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Software | $ | 1,059,799 | $ | 482,095 | $ | 732,226 | $ | 833,598 | $ | 383,245 | $ | 3,490,963 | ||||||||||||
Hardware | 300,201 | 265,556 | 121,781 | 254,908 | 290,735 | 1,233,181 | ||||||||||||||||||
Venture capital/private equity | 264,054 | 160,364 | 326,635 | 192,140 | 392,368 | 1,335,561 | ||||||||||||||||||
Life science | 281,225 | 211,830 | 193,323 | 190,696 | 151,201 | 1,028,275 | ||||||||||||||||||
Premium wine (1) | 64,483 | 36,033 | 17,256 | 7,125 | 15,542 | 140,439 | ||||||||||||||||||
Other | 117,462 | 56,990 | 51,166 | 85,012 | 35,000 | 345,630 | ||||||||||||||||||
Commercial loans | 2,087,224 | 1,212,868 | 1,442,387 | 1,563,479 | 1,268,091 | 7,574,049 | ||||||||||||||||||
Real estate secured loans: | ||||||||||||||||||||||||
Premium wine (1) | 118,420 | 124,062 | 114,620 | 62,167 | 46,678 | 465,947 | ||||||||||||||||||
Consumer loans (2) | 603,509 | 77,823 | 43,517 | — | — | 724,849 | ||||||||||||||||||
Real estate secured loans | 721,929 | 201,885 | 158,137 | 62,167 | 46,678 | 1,190,796 | ||||||||||||||||||
Construction loans | 17,828 | 40,898 | — | — | — | 58,726 | ||||||||||||||||||
Consumer loans (2) | 33,757 | 22,631 | 870 | — | 42,000 | 99,258 | ||||||||||||||||||
Total gross loans | $ | 2,860,738 | $ | 1,478,282 | $ | 1,601,394 | $ | 1,625,646 | $ | 1,356,769 | $ | 8,922,829 |
(1) | Premium wine clients can have loan balances included in both commercial loans and real estate secured loans, the total of which are used for the breakout of the above categories. |
(2) | Consumer loan clients have loan balances included in both real estate secured loans and other consumer loans, the total of which are used for the breakout of the above categories. |
December 31, 2012 | ||||||||||||||||||||||||
(Dollars in thousands) | Less than Five Million | Five to Ten Million | Ten to Twenty Million | Twenty to Thirty Million | Thirty Million or More | Total | ||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Software | $ | 991,011 | $ | 575,721 | $ | 601,400 | $ | 731,840 | $ | 393,927 | $ | 3,293,899 | ||||||||||||
Hardware | 295,981 | 203,813 | 176,854 | 229,913 | 222,923 | 1,129,484 | ||||||||||||||||||
Venture capital/private equity | 298,299 | 194,717 | 285,914 | 301,061 | 669,912 | 1,749,903 | ||||||||||||||||||
Life science | 280,100 | 221,399 | 223,104 | 200,056 | 152,133 | 1,076,792 | ||||||||||||||||||
Premium wine (1) | 71,472 | 24,986 | 41,979 | 6,500 | — | 144,937 | ||||||||||||||||||
Other | 89,703 | 56,078 | 55,608 | 54,620 | 62,579 | 318,588 | ||||||||||||||||||
Commercial loans | 2,026,566 | 1,276,714 | 1,384,859 | 1,523,990 | 1,501,474 | 7,713,603 | ||||||||||||||||||
Real estate secured loans: | ||||||||||||||||||||||||
Premium wine (1) | 101,501 | 110,080 | 128,950 | 42,316 | 31,500 | 414,347 | ||||||||||||||||||
Consumer loans (2) | 563,319 | 78,531 | 43,643 | — | — | 685,493 | ||||||||||||||||||
Real estate secured loans | 664,820 | 188,611 | 172,593 | 42,316 | 31,500 | 1,099,840 | ||||||||||||||||||
Construction loans | 17,182 | 33,928 | 14,616 | — | — | 65,726 | ||||||||||||||||||
Consumer loans (2) | 29,436 | 46,152 | 24,491 | — | 45,000 | 145,079 | ||||||||||||||||||
Total gross loans | $ | 2,738,004 | $ | 1,545,405 | $ | 1,596,559 | $ | 1,566,306 | $ | 1,577,974 | $ | 9,024,248 |
(1) | Premium wine clients can have loan balances included in both commercial loans and real estate secured loans, the total of which are used for the breakout of the above categories. |
(2) | Consumer loan clients have loan balances included in both real estate secured loans and other consumer loans, the total of which are used for the breakout of the above categories. |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | ||||||
Gross nonperforming, past due, and restructured loans: | ||||||||
Loans past due 90 days or more still accruing interest | $ | 36 | $ | 19 | ||||
Impaired loans | 44,346 | 38,279 | ||||||
Performing TDRs | 1,522 | 734 | ||||||
Nonperforming loans as a percentage of total gross loans | 0.50 | % | 0.42 | % | ||||
Nonperforming assets as a percentage of total assets | 0.19 | 0.17 | % | |||||
Allowance for loan losses | $ | 112,205 | $ | 110,651 | ||||
As a percentage of total gross loans | 1.26 | % | 1.23 | % | ||||
As a percentage of total gross nonperforming loans | 253.02 | 289.06 | ||||||
Allowance for loan losses for impaired loans | $ | 7,728 | $ | 6,261 | ||||
As a percentage of total gross loans | 0.09 | % | 0.07 | % | ||||
As a percentage of total gross nonperforming loans | 17.43 | 16.36 | ||||||
Allowance for loan losses for total gross performing loans | $ | 104,477 | $ | 104,390 | ||||
As a percentage of total gross loans | 1.17 | % | 1.16 | % | ||||
As a percentage of total gross performing loans | 1.18 | 1.16 | ||||||
Total gross loans | $ | 8,922,829 | $ | 9,024,248 | ||||
Total gross performing loans | 8,878,483 | 8,985,969 | ||||||
Reserve for unfunded credit commitments (1) | 24,300 | 22,299 | ||||||
As a percentage of total unfunded credit commitments | 0.26 | % | 0.26 | % | ||||
Total unfunded credit commitments (2) | $ | 9,170,337 | $ | 8,610,791 |
(1) | The “Reserve for unfunded credit commitments” is included as a component of other liabilities. See “Provision for Unfunded Credit Commitments” above for a discussion of the changes to the reserve. |
(2) | Includes unfunded loan commitments and letters of credit. |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | % Change | ||||||||
Derivative assets, gross (1) | $ | 96,773 | $ | 98,266 | (1.5 | )% | |||||
Accrued interest receivable | 64,375 | 64,167 | 0.3 | ||||||||
FHLB and FRB stock | 39,806 | 39,806 | — | ||||||||
Foreign exchange spot contract assets, gross | 84,096 | 42,653 | 97.2 | ||||||||
Accounts receivable | 14,721 | 15,650 | (5.9 | ) | |||||||
Prepaid FDIC assessments | 230 | 461 | (50.1 | ) | |||||||
Other assets | 54,401 | 65,868 | (17.4 | ) | |||||||
Total accrued interest receivable and other assets | $ | 354,402 | $ | 326,871 | 8.4 |
(1) | See “Derivatives” section below. |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | % Change | ||||||||
Assets: | |||||||||||
Equity warrant assets | $ | 72,333 | $ | 74,272 | (2.6 | )% | |||||
Foreign exchange forward and option contracts | 13,752 | 13,541 | 1.6 | ||||||||
Interest rate swaps | 8,506 | 9,005 | (5.5 | ) | |||||||
Loan conversion options | 1,529 | 890 | 71.8 | ||||||||
Client interest rate derivatives | 653 | 558 | 17.0 | ||||||||
Total derivative assets | $ | 96,773 | $ | 98,266 | (1.5 | ) | |||||
Liabilities: | |||||||||||
Foreign exchange forward and option contracts | $ | (11,513 | ) | $ | (12,847 | ) | (10.4 | ) | |||
Client interest rate derivatives | (691 | ) | (590 | ) | 17.1 | ||||||
Total derivative liabilities | $ | (12,204 | ) | $ | (13,437 | ) | (9.2 | ) |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Balance, beginning of period | $ | 74,272 | $ | 66,953 | ||||
New equity warrant assets | 2,503 | 2,608 | ||||||
Non-cash increases in fair value | 2,795 | 4,563 | ||||||
Exercised equity warrant assets | (7,133 | ) | (2,151 | ) | ||||
Terminated equity warrant assets | (104 | ) | (569 | ) | ||||
Balance, end of period | $ | 72,333 | $ | 71,404 |
(Dollars in thousands) | March 31, 2013 | December 31, 2012 | % Change | ||||||||
Foreign exchange spot contract liabilities, gross | $ | 125,846 | $ | 57,868 | 117.5 | % | |||||
Accrued compensation | 31,834 | 94,209 | (66.2 | ) | |||||||
Reserve for unfunded credit commitments | 24,300 | 22,299 | 9.0 | ||||||||
Derivative liabilities, gross (1) | 12,204 | 13,437 | (9.2 | ) | |||||||
Deferred tax liabilities | 15,614 | 25,580 | (39.0 | ) | |||||||
Other | 149,582 | 147,173 | 1.6 | ||||||||
Total other liabilities | $ | 359,380 | $ | 360,566 | (0.3 | ) |
(1) | See “Derivatives” section above. |
March 31, 2013 | December 31, 2012 | |||||||||||||||
(Dollars in thousands) | Total Balance | Level 3 | Total Balance | Level 3 | ||||||||||||
Assets carried at fair value | $ | 11,840,976 | $ | 891,908 | $ | 12,244,783 | $ | 859,141 | ||||||||
As a percentage of total assets | 51.9 | % | 3.9 | % | 53.8 | % | 3.8 | % | ||||||||
Liabilities carried at fair value | $ | 12,204 | $ | — | $ | 13,437 | $ | — | ||||||||
As a percentage of total liabilities | 0.1 | % | — | % | 0.1 | % | — | % | ||||||||
Level 1 and 2 | Level 3 | Level 1 and 2 | Level 3 | |||||||||||||
Percentage of assets measured at fair value | 92.5 | % | 7.5 | % | 93.0 | % | 7.0 | % |
March 31, 2013 | December 31, 2012 | Minimum ratio to be “Well Capitalized” | Minimum ratio to be “Adequately Capitalized” | |||||||||
SVB Financial: | ||||||||||||
Total risk-based capital ratio | 14.59 | % | 14.05 | % | 10.0 | % | 8.0 | % | ||||
Tier 1 risk-based capital ratio | 13.30 | 12.79 | 6.0 | 4.0 | ||||||||
Tier 1 leverage ratio | 8.39 | 8.06 | N/A | 4.0 | ||||||||
Tangible common equity to tangible assets ratio (1)(2) | 8.26 | 8.04 | N/A | N/A | ||||||||
Tangible common equity to risk-weighted assets ratio (1)(2) | 13.94 | 13.53 | N/A | N/A | ||||||||
Bank: | ||||||||||||
Total risk-based capital ratio | 13.01 | % | 12.53 | % | 10.0 | % | 8.0 | % | ||||
Tier 1 risk-based capital ratio | 11.70 | 11.24 | 6.0 | 4.0 | ||||||||
Tier 1 leverage ratio | 7.35 | 7.06 | 5.0 | 4.0 | ||||||||
Tangible common equity to tangible assets ratio (1)(2) | 7.62 | 7.41 | N/A | N/A | ||||||||
Tangible common equity to risk-weighted assets ratio (1)(2) | 12.45 | 12.08 | N/A | N/A |
(1) | See below for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets. |
(2) | The FRB has not issued any minimum guidelines for the tangible common equity to tangible assets ratio or the tangible common equity to risk-weighted assets ratio. However, we believe these ratios provide meaningful supplemental information regarding our capital levels and are therefore provided above. |
SVB Financial | Bank | |||||||||||||||
Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios) | March 31, 2013 | December 31, 2012 | March 31, 2013 | December 31, 2012 | ||||||||||||
GAAP SVBFG stockholders’ equity | $ | 1,882,219 | $ | 1,830,555 | $ | 1,637,365 | $ | 1,591,643 | ||||||||
Less: | ||||||||||||||||
Intangible assets | — | — | — | — | ||||||||||||
Tangible common equity | $ | 1,882,219 | $ | 1,830,555 | $ | 1,637,365 | $ | 1,591,643 | ||||||||
GAAP Total assets | $ | 22,796,000 | $ | 22,766,123 | $ | 21,487,859 | $ | 21,471,111 | ||||||||
Less: | ||||||||||||||||
Intangible assets | — | — | — | — | ||||||||||||
Tangible assets | $ | 22,796,000 | $ | 22,766,123 | $ | 21,487,859 | $ | 21,471,111 | ||||||||
Risk-weighted assets | $ | 13,501,072 | $ | 13,532,984 | $ | 13,147,423 | $ | 13,177,887 | ||||||||
Tangible common equity to tangible assets | 8.26 | % | 8.04 | % | 7.62 | % | 7.41 | % | ||||||||
Tangible common equity to risk-weighted assets | 13.94 | 13.53 | 12.45 | 12.08 |
Three months ended March 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Average cash and cash equivalents | $ | 1,101,597 | $ | 1,489,984 | ||||
Percentage of total average assets | 4.9 | % | 7.4 | % | ||||
Net cash used for operating activities | $ | (1,044 | ) | $ | (10,872 | ) | ||
Net cash provided by (used for) investing activities | 532,326 | (1,148,180 | ) | |||||
Net cash (used for) provided by financing activities | (21,016 | ) | 894,728 | |||||
Net increase (decrease) in cash and cash equivalents | $ | 510,266 | $ | (264,324 | ) |
Estimated | Estimated Increase In EVE | Estimated | Estimated Increase/ (Decrease) In NII | |||||||||||||||||||
Change in interest rates (basis points) | EVE | Amount | Percent | NII | Amount | Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
March 31, 2013: | ||||||||||||||||||||||
+200 | $ | 3,487,516 | $ | 499,318 | 16.7 | $ | 832,813 | $ | 150,933 | 22.1 | % | |||||||||||
+100 | 3,154,121 | 165,923 | 5.6 | 749,165 | 67,285 | 9.9 | ||||||||||||||||
— | 2,988,198 | — | — | 681,880 | — | — | ||||||||||||||||
-100 | 3,133,881 | 145,683 | 4.9 | 655,603 | (26,277 | ) | (3.9 | ) | ||||||||||||||
-200 | 3,168,485 | 180,287 | 6.0 | 654,695 | (27,185 | ) | (4.0 | ) | ||||||||||||||
December 31, 2012: | ||||||||||||||||||||||
+200 | $ | 3,176,231 | $ | 345,925 | 12.2 | % | $ | 834,208 | $ | 137,021 | 19.7 | % | ||||||||||
+100 | 2,862,361 | 32,055 | 1.1 | 757,662 | 60,475 | 8.7 | ||||||||||||||||
— | 2,830,306 | — | — | 697,187 | — | — | ||||||||||||||||
-100 | 2,981,216 | 150,910 | 5.3 | 671,976 | (25,211 | ) | (3.6 | ) | ||||||||||||||
-200 | 3,012,121 | 181,815 | 6.4 | 670,445 | (26,742 | ) | (3.8 | ) |
SVB Financial Group | ||
Date: May 10, 2013 | /s/ MICHAEL DESCHENEAUX | |
Michael Descheneaux | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
SVB Financial Group | ||
Date: May 10, 2013 | /s/ KAMRAN HUSAIN | |
Kamran Husain | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||
Form | File No. | Exhibit | Filing Date | |||||||||
3.1 | Restated Certificate of Incorporation | 8-K | 000-15637 | 3.1 | May 31, 2005 | |||||||
3.2 | Amended and Restated Bylaws | 8-K | 000-15637 | 3.2 | July 27, 2010 | |||||||
3.3 | Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Preferred Stock | 8-K | 000-15637 | 3.3 | December 8, 2008 | |||||||
3.4 | Certificate of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series B | 8-K | 000-15637 | 3.4 | December 15, 2008 | |||||||
4.1 | Junior Subordinated Indenture, dated as of October 30, 2003 between SVB Financial and Wilmington Trust Company, as trustee | 8-K | 000-15637 | 4.12 | November 19, 2003 | |||||||
4.2 | 7.0% Junior Subordinated Deferrable Interest Debenture due October 15, 2033 of SVB Financial | 8-K | 000-15637 | 4.13 | November 19, 2003 | |||||||
4.3 | Amended and Restated Trust Agreement, dated as of October 30, 2003, by and among SVB Financial as depositor, Wilmington Trust Company as property trustee, Wilmington Trust Company as Delaware trustee, and the Administrative Trustees named therein | 8-K | 000-15637 | 4.14 | November 19, 2003 | |||||||
4.4 | Certificate Evidencing 7% Cumulative Trust Preferred Securities of SVB Capital II, dated October 30, 2003 | 8-K | 000-15637 | 4.15 | November 19, 2003 | |||||||
4.5 | Guarantee Agreement, dated October 30, 2003, between SVB Financial and Wilmington Trust Company, as trustee | 8-K | 000-15637 | 4.16 | November 19, 2003 | |||||||
4.6 | Agreement as to Expenses and Liabilities, dated as of October 30, 2003, between SVB Financial and SVB Capital II | 8-K | 000-15637 | 4.17 | November 19, 2003 | |||||||
4.7 | Certificate Evidencing 7% Common Securities of SVB Capital II, dated October 30, 2003 | 8-K | 000-15637 | 4.18 | November 19, 2003 | |||||||
4.8 | Officers’ Certificate and Company Order, dated October 30, 2003, relating to the 7.0% Junior Subordinated Deferrable Interest Debentures due October 15, 2033 | 8-K | 000-15637 | 4.19 | November 19, 2003 | |||||||
4.9 | Amended and Restated Preferred Stock Rights Agreement, dated as of January 29, 2004, between SVB Financial and Wells Fargo Bank Minnesota, N.A. | 8-A12G/A | 000-15637 | 4.20 | February 27, 2004 | |||||||
4.10 | Amendment No. 1 to Amended & Restated Preferred Stock Rights Agreement, dated as of August 2, 2004, by and between SVB Financial and Wells Fargo Bank, N.A. | 8-A12G/A | 000-15637 | 4.13 | August 3, 2004 | |||||||
4.11 | Amendment No. 2 to Amended & Restated Preferred Stock Rights Agreement, dated as of January 29, 2008, by and between SVB Financial and Wells Fargo Bank, N.A. | 8-A/A | 000-15637 | 4.14 | January 29, 2008 | |||||||
4.12 | Amendment No. 3 to Amended and Restated Preferred Stock Rights Agreement, dated as of April 30, 2008, by and between SVB Financial and Wells Fargo Bank, N.A | 8-A/A | 000-15637 | 4.20 | April 30, 2008 |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||
Form | File No. | Exhibit | Filing Date | |||||||||
4.13 | Amendment No. 4 to Amended and Restated Preferred Stock Rights Agreement, dated as of January 15, 2010, by and between SVB Financial, Wells Fargo Bank, N.A. and American Stock Transfer & Trust Company, LLC | 8-A/A | 000-15637 | 4.22 | January 19, 2010 | |||||||
4.14 | Indenture, dated September 20, 2010, by and between SVB Financial Group and U.S. Bank National Association, as trustee | 8-K | 000-15637 | 4.1 | September 20, 2010 | |||||||
4.15 | Form of 5.375% Senior Note due 2020 | 8-K | 000-15637 | 4.2 | September 20, 2010 | |||||||
31.1 | Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Executive Officer | X | ||||||||||
31.2 | Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Financial Officer | X | ||||||||||
32.1 | Section 1350 Certifications | ** | ||||||||||
101.INS | XBRL Instance Document | X | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X |
** | Furnished herewith |
1. | I have reviewed this Quarterly Report on Form 10-Q of SVB Financial Group; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 10, 2013 | /s/ GREG BECKER | |
Greg Becker | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of SVB Financial Group; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 10, 2013 | /s/ MICHAEL DESCHENEAUX | |
Michael Descheneaux | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Date: May 10, 2013 | /s/ GREG BECKER | |
Greg Becker | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
Date: May 10, 2013 | /s/ MICHAEL DESCHENEAUX | |
Michael Descheneaux | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Share-Based Compensation - Share Based Compensation and Related Benefits (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation expense | $ 5,826 | $ 5,149 |
Income tax benefit related to share-based compensation expense | $ (1,603) | $ (1,199) |
Loans and Allowance for Loan Losses - Composition of Loans, Net of Unearned income (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | $ 8,844,890 | [1] | $ 8,946,933 | [1] | ||||||
Real estate secured loans
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 1,189,607 | 1,098,813 | ||||||||
Commercial Portfolio Segment
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 8,020,707 | 8,116,976 | ||||||||
Commercial Portfolio Segment | Commercial Loans Receivable excluding Construction and Real Estate Secured
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 7,497,421 | 7,637,721 | ||||||||
Commercial Portfolio Segment | Software
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 3,455,602 | 3,261,489 | ||||||||
Commercial Portfolio Segment | Hardware
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 1,220,691 | 1,118,370 | ||||||||
Commercial Portfolio Segment | Venture capital/private equity
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 1,322,123 | 1,732,699 | ||||||||
Commercial Portfolio Segment | Life science
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 1,017,859 | 1,066,199 | ||||||||
Commercial Portfolio Segment | Premium wine
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 603,730 | 557,024 | ||||||||
Commercial Portfolio Segment | Premium wine | Non-real Estate Secured Commercial Loans
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 139,017 | 143,511 | ||||||||
Commercial Portfolio Segment | Premium wine | Real Estate Secured Commercial Loans
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 464,713 | [2] | 413,513 | [2] | ||||||
Commercial Portfolio Segment | Other
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 400,702 | 381,195 | ||||||||
Commercial Portfolio Segment | Other | Commercial Loans Receivable excluding Construction and Real Estate Secured
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 342,129 | 315,453 | ||||||||
Commercial Portfolio Segment | Other | Construction loans
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 58,573 | 65,742 | ||||||||
Consumer Portfolio Segment
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 824,183 | 829,957 | ||||||||
Consumer Portfolio Segment | Real estate secured loans
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | 724,894 | [3] | 685,300 | [3] | ||||||
Consumer Portfolio Segment | Consumer loans
|
||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans, net of unearned income | $ 99,289 | $ 144,657 | ||||||||
|
Derivative Financial Instruments - Additional Information (Detail) (Foreign Exchange Forward And Option Contracts, Upper Limit)
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
General maturity
|
|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Contract term | 1 year |
Extended maturity
|
|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Contract term | 5 years |
Loans and Allowance for Loan Losses - Composition of Loans, Net of Unearned income (Parenthetical) (Detail) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
||||||
---|---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | $ 8,844,890,000 | [1] | $ 8,946,933,000 | [1] | ||||
Credit Card Receivable
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total loan portfolio | 77,000,000 | 64,100,000 | ||||||
Consumer Portfolio Segment
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 824,183,000 | 829,957,000 | ||||||
Real estate secured loans | Consumer Portfolio Segment
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 724,894,000 | [2] | 685,300,000 | [2] | ||||
Real estate secured loans | Consumer Portfolio Segment | Loans for personal residence
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 541,115,000 | 503,378,000 | ||||||
Real estate secured loans | Consumer Portfolio Segment | Loans to eligible employees
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 112,314,000 | 110,584,000 | ||||||
Real estate secured loans | Consumer Portfolio Segment | Home equity lines of credit
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, net of unearned income | 71,465,000 | 71,338,000 | ||||||
Premium wine | Consumer Portfolio Segment
|
||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross construction loans | $ 132,700,000 | $ 147,900,000 | ||||||
|
Segment Reporting - Additional Information (Detail)
|
3 Months Ended |
---|---|
Mar. 31, 2013
Segment
|
|
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Investment Securities - Major Components of Investment Securities Portfolio (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | $ 10,739,192 | $ 11,152,150 | ||||||||||
Unrealized Gains | 173,669 | 192,960 | ||||||||||
Unrealized Losses | (4,698) | (1,933) | ||||||||||
Available-for-sale securities | 10,908,163 | 11,343,177 | ||||||||||
Non-marketable securities | 1,215,788 | 1,184,265 | ||||||||||
Total investment securities | 12,123,951 | 12,527,442 | ||||||||||
Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Non-marketable securities | 701,076 | [1] | 665,921 | [1] | ||||||||
Fair value accounting | Other venture capital investments
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Non-marketable securities | 124,786 | [2] | 127,091 | [2] | ||||||||
Equity method accounting | Other investments
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Non-marketable securities | 140,607 | [3] | 139,330 | [3] | ||||||||
Equity method accounting | Low income housing tax credit funds
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Non-marketable securities | 69,263 | 70,318 | ||||||||||
Cost method accounting | Venture capital and private equity fund investments
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Non-marketable securities | 160,870 | [4] | 161,884 | [4] | ||||||||
Cost method accounting | Other investments
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Non-marketable securities | 19,186 | 19,721 | ||||||||||
U.S. treasury securities
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | 99,993 | 25,057 | ||||||||||
Unrealized Gains | 53 | 190 | ||||||||||
Unrealized Losses | 0 | 0 | ||||||||||
Available-for-sale securities | 100,046 | 25,247 | ||||||||||
U.S. agency debentures
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | 3,415,170 | 3,370,455 | ||||||||||
Unrealized Gains | 69,116 | 77,173 | ||||||||||
Unrealized Losses | (383) | 0 | ||||||||||
Available-for-sale securities | 3,483,903 | 3,447,628 | ||||||||||
Residential mortgage-backed securities | Agency-issued mortgage-backed securities
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | 1,308,099 | 1,428,682 | ||||||||||
Unrealized Gains | 40,177 | 44,858 | ||||||||||
Unrealized Losses | (446) | (107) | ||||||||||
Available-for-sale securities | 1,347,830 | 1,473,433 | ||||||||||
Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Fixed rate
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | 3,818,389 | 4,063,020 | ||||||||||
Unrealized Gains | 38,200 | 41,949 | ||||||||||
Unrealized Losses | (1,522) | (995) | ||||||||||
Available-for-sale securities | 3,855,067 | 4,103,974 | ||||||||||
Residential mortgage-backed securities | Agency-issued collateralized mortgage obligations | Variable rate
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | 1,593,456 | 1,760,551 | ||||||||||
Unrealized Gains | 9,425 | 12,201 | ||||||||||
Unrealized Losses | (28) | (4) | ||||||||||
Available-for-sale securities | 1,602,853 | 1,772,748 | ||||||||||
Agency-issued commercial mortgage-backed securities
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | 414,300 | 416,487 | ||||||||||
Unrealized Gains | 6,275 | 6,100 | ||||||||||
Unrealized Losses | (1,240) | (489) | ||||||||||
Available-for-sale securities | 419,335 | 422,098 | ||||||||||
Municipal bonds and notes
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | 83,299 | 85,790 | ||||||||||
Unrealized Gains | 7,204 | 7,750 | ||||||||||
Unrealized Losses | 0 | (11) | ||||||||||
Available-for-sale securities | 90,503 | 93,529 | ||||||||||
Equity securities
|
||||||||||||
Investment Holdings [Line Items] | ||||||||||||
Amortized Cost | 6,486 | 2,108 | ||||||||||
Unrealized Gains | 3,219 | 2,739 | ||||||||||
Unrealized Losses | (1,079) | (327) | ||||||||||
Available-for-sale securities | $ 8,626 | $ 4,520 | ||||||||||
|
Segment Reporting (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Our segment information for the three months ended March 31, 2013 and 2012 is as follows:
|
Segment Reporting - Segment Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net interest income | $ 163,169 | $ 150,937 | ||||||||||
(Provision for) reduction of loan losses | (5,813) | (14,529) | ||||||||||
Noninterest income | 78,604 | 59,293 | ||||||||||
Noninterest expense | (149,014) | [1] | (132,012) | [1] | ||||||||
Income before income tax expense | 86,946 | [2] | 63,689 | [2] | ||||||||
Total average loans, net of unearned income | 8,680,917 | 6,804,348 | ||||||||||
Total average assets | 22,314,559 | [3] | 20,232,543 | [3] | ||||||||
Total average deposits | 18,785,513 | 16,965,763 | ||||||||||
Global Commercial Bank
|
||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net interest income | 148,936 | [4] | 143,264 | [4] | ||||||||
(Provision for) reduction of loan losses | (6,207) | [4] | (13,236) | [4] | ||||||||
Noninterest income | 46,541 | [4] | 39,928 | [4] | ||||||||
Noninterest expense | (105,578) | [1],[4] | (96,443) | [1],[4] | ||||||||
Income before income tax expense | 83,692 | [2],[4] | 73,513 | [2],[4] | ||||||||
Total average loans, net of unearned income | 7,868,587 | [4] | 6,031,356 | [4] | ||||||||
Total average assets | 20,463,477 | [3],[4] | 18,556,741 | [3],[4] | ||||||||
Total average deposits | 18,302,877 | [4] | 16,702,114 | [4] | ||||||||
SVB Private Bank
|
||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net interest income | 6,104 | 4,965 | ||||||||||
(Provision for) reduction of loan losses | 394 | (1,293) | ||||||||||
Noninterest income | 234 | 157 | ||||||||||
Noninterest expense | (3,461) | [1] | (3,126) | [1] | ||||||||
Income before income tax expense | 3,271 | [2] | 703 | [2] | ||||||||
Total average loans, net of unearned income | 844,807 | 737,968 | ||||||||||
Total average assets | 853,932 | [3] | 741,962 | [3] | ||||||||
Total average deposits | 470,673 | 240,500 | ||||||||||
SVB Capital
|
||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net interest income | 1 | [4] | 7 | [4] | ||||||||
(Provision for) reduction of loan losses | 0 | [4] | 0 | [4] | ||||||||
Noninterest income | 5,441 | [4] | 3,587 | [4] | ||||||||
Noninterest expense | (2,386) | [1],[4] | (2,536) | [1],[4] | ||||||||
Income before income tax expense | 3,056 | [2],[4] | 1,058 | [2],[4] | ||||||||
Total average loans, net of unearned income | 0 | [4] | 0 | [4] | ||||||||
Total average assets | 238,743 | [3],[4] | 260,127 | [3],[4] | ||||||||
Total average deposits | 0 | [4] | 0 | [4] | ||||||||
Other Items
|
||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net interest income | 8,128 | 2,701 | ||||||||||
(Provision for) reduction of loan losses | 0 | 0 | ||||||||||
Noninterest income | 26,388 | 15,621 | ||||||||||
Noninterest expense | (37,589) | [1] | (29,907) | [1] | ||||||||
Income before income tax expense | (3,073) | [2] | (11,585) | [2] | ||||||||
Total average loans, net of unearned income | (32,477) | 35,024 | ||||||||||
Total average assets | 758,407 | [3] | 673,713 | [3] | ||||||||
Total average deposits | $ 11,963 | $ 23,149 | ||||||||||
|
Derivative Financial Instruments - Summary of Derivative Activity and Related Impact on Consolidated Statements of Income (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|||||
Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Interest expense—borrowings
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | $ 634 | $ 2,229 | ||||
Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Net gains on derivative instruments
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | 60 | 389 | ||||
Derivatives designated as hedging instruments | Interest rate risks | Interest Rate Risk
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | 694 | 2,618 | ||||
Derivatives not designated as hedging instruments | Currency exchange risks
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | (864) | (392) | ||||
Derivatives not designated as hedging instruments | Currency exchange risks | Loans | Other noninterest income
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | (7,064) | 1,659 | ||||
Derivatives not designated as hedging instruments | Currency exchange risks | Foreign exchange forwards | Net gains on derivative instruments
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | 6,200 | (2,051) | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Foreign exchange forwards | Net gains on derivative instruments
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | 797 | 1,065 | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Equity warrant assets | Net gains on derivative instruments
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | 3,505 | 6,935 | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Net gains on derivative instruments
|
||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivative instruments | $ 478 | [1] | $ (362) | [1] | ||
|
Fair Value of Financial Instruments - Additional Information about Level 3 Assets Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 3 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Mar. 31, 2013
Equity warrant assets
Other assets
|
Mar. 31, 2012
Equity warrant assets
Other assets
|
Mar. 31, 2013
Fair value accounting
Other venture capital investments
|
Dec. 31, 2012
Fair value accounting
Other venture capital investments
|
Mar. 31, 2013
Non-marketable securities
Fair value accounting
|
Mar. 31, 2012
Non-marketable securities
Fair value accounting
|
Mar. 31, 2013
Non-marketable securities
Fair value accounting
Venture capital and private equity fund investments
|
Mar. 31, 2012
Non-marketable securities
Fair value accounting
Venture capital and private equity fund investments
|
Mar. 31, 2013
Non-marketable securities
Fair value accounting
Other venture capital investments
|
Mar. 31, 2012
Non-marketable securities
Fair value accounting
Other venture capital investments
|
Mar. 31, 2012
Non-marketable securities
Fair value accounting
Other investments
|
|||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||
Beginning Balance | $ 859,141 | $ 799,962 | $ 66,129 | [1] | $ 63,030 | [1] | $ 124,786 | $ 127,091 | $ 793,012 | [2] | $ 736,932 | [2] | $ 665,921 | $ 611,824 | $ 127,091 | $ 124,121 | $ 987 | ||||
Total Realized and Unrealized Gains (Losses) Included in Income | (26,157) | (12,333) | (1,459) | [1] | (3,795) | [1] | (24,698) | [2] | (8,538) | [2] | (22,510) | (12,104) | (2,188) | 3,587 | (21) | ||||||
Purchases | 29,910 | 29,440 | 0 | [1] | 0 | [1] | 29,910 | [2] | 29,440 | [2] | 29,744 | 21,716 | 166 | 7,724 | 0 | ||||||
Sales | (2,271) | (3,950) | (2,250) | [1] | (3,643) | [1] | (21) | [2] | (307) | [2] | 0 | 0 | (21) | (307) | 0 | ||||||
Issuances | 1,926 | 2,300 | 1,926 | [1] | 2,300 | [1] | 0 | [2] | 0 | [2] | 0 | 0 | 0 | 0 | 0 | ||||||
Distributions and Other Settlements | (17,812) | (25,293) | 364 | [1] | 1 | [1] | (18,176) | [2] | (25,294) | [2] | (17,099) | (25,288) | (1,077) | 0 | (6) | ||||||
Transfers Into Level 3 | 0 | 0 | 0 | [1] | 0 | [1] | 0 | [2] | 0 | [2] | 0 | 0 | 0 | 0 | 0 | ||||||
Transfers Out of Level 3 | (5,143) | (266) | (1,582) | [1] | (266) | [1] | (3,561) | [2] | 0 | [2] | 0 | 0 | (3,561) | 0 | 0 | ||||||
Ending Balance | $ 891,908 | $ 814,526 | $ 66,046 | [1] | $ 65,217 | [1] | $ 124,786 | $ 127,091 | $ 825,862 | [2] | $ 749,309 | [2] | $ 701,076 | $ 620,356 | $ 124,786 | $ 127,951 | $ 1,002 | ||||
|
Loans and Allowance for Loan Losses - Aging of Gross Loans, Broken out by Portfolio Segment and Class of Financing Receivable (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | $ 18,077 | $ 10,563 |
60 - 89 Days Past Due | 3,473 | 10,063 |
Greater Than 90 Days Past Due | 13,965 | 2,288 |
Total Past Due | 35,515 | 22,914 |
Current | 8,887,314 | 9,001,334 |
Loans Past Due 90 Days or More Still Accruing Interest | 36 | 19 |
Commercial loans
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 14,628 | 6,551 |
60 - 89 Days Past Due | 1,733 | 387 |
Greater Than 90 Days Past Due | 36 | 19 |
Total Past Due | 16,397 | 6,957 |
Current | 8,043,514 | 8,151,780 |
Loans Past Due 90 Days or More Still Accruing Interest | 36 | 19 |
Commercial loans | Software
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 2,739 | 5,890 |
60 - 89 Days Past Due | 1,493 | 238 |
Greater Than 90 Days Past Due | 5 | 19 |
Total Past Due | 4,237 | 6,147 |
Current | 3,480,632 | 3,284,489 |
Loans Past Due 90 Days or More Still Accruing Interest | 5 | 19 |
Commercial loans | Hardware
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 4,034 | 167 |
60 - 89 Days Past Due | 19 | 32 |
Greater Than 90 Days Past Due | 31 | 0 |
Total Past Due | 4,084 | 199 |
Current | 1,206,431 | 1,107,422 |
Loans Past Due 90 Days or More Still Accruing Interest | 31 | 0 |
Commercial loans | Venture capital/private equity
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 84 | 7 |
60 - 89 Days Past Due | 1 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 85 | 7 |
Current | 1,335,476 | 1,749,896 |
Loans Past Due 90 Days or More Still Accruing Interest | 0 | 0 |
Commercial loans | Life science
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 5,886 | 207 |
60 - 89 Days Past Due | 220 | 117 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 6,106 | 324 |
Current | 1,021,715 | 1,076,468 |
Loans Past Due 90 Days or More Still Accruing Interest | 0 | 0 |
Commercial loans | Premium wine
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 1,700 | 0 |
60 - 89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 1,700 | 0 |
Current | 600,383 | 554,886 |
Loans Past Due 90 Days or More Still Accruing Interest | 0 | 0 |
Commercial loans | Other
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 185 | 280 |
60 - 89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 185 | 280 |
Current | 398,877 | 378,619 |
Loans Past Due 90 Days or More Still Accruing Interest | 0 | 0 |
Consumer loans
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 990 | 111 |
60 - 89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 990 | 111 |
Current | 817,582 | 827,121 |
Loans Past Due 90 Days or More Still Accruing Interest | 0 | 0 |
Consumer loans | Real estate secured loans
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 605 | 0 |
60 - 89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 605 | 0 |
Current | 719,801 | 683,254 |
Loans Past Due 90 Days or More Still Accruing Interest | 0 | 0 |
Consumer loans | Consumer loans
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 385 | 111 |
60 - 89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 385 | 111 |
Current | 97,781 | 143,867 |
Loans Past Due 90 Days or More Still Accruing Interest | 0 | 0 |
Total gross loans excluding impaired loans
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 15,618 | 6,662 |
60 - 89 Days Past Due | 1,733 | 387 |
Greater Than 90 Days Past Due | 36 | 19 |
Total Past Due | 17,387 | 7,068 |
Current | 8,861,096 | 8,978,901 |
Loans Past Due 90 Days or More Still Accruing Interest | 36 | 19 |
Impaired loans
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 - 59 Days Past Due | 2,459 | 3,901 |
60 - 89 Days Past Due | 1,740 | 9,676 |
Greater Than 90 Days Past Due | 13,929 | 2,269 |
Total Past Due | 18,128 | 15,846 |
Current | 26,218 | 22,433 |
Loans Past Due 90 Days or More Still Accruing Interest | $ 0 | $ 0 |
Other Noninterest Income and Other Noninterest Expense - Summary of Other Noninterest Income (Parenthetical) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Other Income and Expenses [Abstract] | ||
Foreign Currency Transaction Unrealized Gain Loss Other Instruments Attributable To Noncontrolling Interests | $ 0.2 | $ 0.6 |
Off-Balance Sheet Arrangements, Guarantees and Other Commitments - Remaining Unfunded Commitments to Venture Capital or Private Equity Funds by our Consolidated Managed Funds (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
---|---|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | $ 448,482 |
SVB Strategic Investors Fund, LP
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | 2,298 |
SVB Strategic Investors Fund II, LP
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | 8,475 |
SVB Strategic Investors Fund III, LP
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | 33,462 |
SVB Strategic Investors Fund IV, LP
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | 83,897 |
Strategic Investors Fund V Funds
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | 282,046 |
Strategic Investors Fund VI Funds
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | 3,500 |
SVB Capital Preferred Return Fund, LP
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | 14,286 |
SVB Capital—NT Growth Partners, LP
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | 16,289 |
Other private equity fund
|
|
Commitments and Contingencies Disclosure [Line Items] | |
SVBFG Unfunded Commitments | $ 4,229 |
Off-Balance Sheet Arrangements, Guarantees and Other Commitments - Summary Information Related to Commitments to Extend Credit (Excluding Letters of Credit) (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Disclosure Off Balance Sheet Arrangements Guarantees And Other Commitments Additional Information [Abstract] | ||||||||||||||
Fixed interest rate commitments | $ 830,278 | [1] | $ 862,120 | [1] | ||||||||||
Variable interest rate commitments | 7,504,108 | [1] | 6,906,580 | [1] | ||||||||||
Total loan commitments available for funding | 8,334,386 | [1] | 7,768,700 | [1] | ||||||||||
Commercial and standby letters of credit | 835,951 | [2] | 842,091 | [2] | ||||||||||
Total unfunded credit commitments | 9,170,337 | 8,610,791 | ||||||||||||
Commitments unavailable for funding | 1,371,135 | [3] | 1,315,072 | [3] | ||||||||||
Maximum lending limits for accounts receivable factoring arrangements | 897,344 | [4] | 880,057 | [4] | ||||||||||
Reserve for unfunded credit commitments | $ 24,300 | [5] | $ 22,299 | [5] | ||||||||||
|
Income Taxes (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Income Taxes [Line Items] | |
Unrecognized tax benefit | 0.5 |
Reduction in income tax expense resulting from recognition of unrecognized tax benefit | 0.3 |
Internal Revenue Service (IRS)
|
|
Income Taxes [Line Items] | |
Tax years open to examination | Our U.S. federal tax returns for 2010 and subsequent years remain open to examination |
State and Local Jurisdiction
|
|
Income Taxes [Line Items] | |
Tax years open to examination | Our California and Massachusetts tax returns for 2008 and subsequent years remain open to examination |
Other Noninterest Income and Other Noninterest Expense - Summary of Other Noninterest Expense (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Other Income and Expenses [Abstract] | ||
Telephone | $ 1,557 | $ 1,784 |
Client services | 1,935 | 1,253 |
Data processing services | 1,912 | 1,405 |
Tax credit fund amortization | 1,317 | 1,058 |
Postage and supplies | 538 | 625 |
Dues and publications | 458 | 474 |
Other | 2,218 | 1,208 |
Total other noninterest expense | $ 9,935 | $ 7,807 |
Derivative Financial Instruments - Total Notional or Contractual Amounts, Fair Value, Collateral and Net Exposure of Derivative Financial Instruments (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
||||||
---|---|---|---|---|---|---|---|---|
Derivative [Line Items] | ||||||||
Fair Value | $ 84,569 | $ 84,829 | ||||||
Net Exposure | 77,109 | [1] | 78,719 | [1] | ||||
Collateral | 7,460 | [2] | 6,110 | [2] | ||||
Derivatives designated as hedging instruments | Interest rate risks | Interest rate swaps | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 45,964 | 45,964 | ||||||
Fair Value | 8,506 | 9,005 | ||||||
Net Exposure | 1,046 | [1] | 2,895 | [1] | ||||
Collateral | 7,460 | [2] | 6,110 | [2] | ||||
Derivatives not designated as hedging instruments | Currency exchange risks
|
||||||||
Derivative [Line Items] | ||||||||
Fair Value | (372) | (1,240) | ||||||
Net Exposure | (372) | [1] | (1,240) | [1] | ||||
Derivatives not designated as hedging instruments | Currency exchange risks | Foreign exchange forwards | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 46,088 | 51,010 | ||||||
Fair Value | 1,051 | 488 | ||||||
Net Exposure | 1,051 | [1] | 488 | [1] | ||||
Derivatives not designated as hedging instruments | Currency exchange risks | Foreign exchange forwards | Other liability
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 90,536 | 102,956 | ||||||
Fair Value | (1,423) | (1,728) | ||||||
Net Exposure | (1,423) | [1] | (1,728) | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Equity warrant assets | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 169,303 | 164,332 | ||||||
Fair Value | 72,333 | 74,272 | ||||||
Net Exposure | 72,333 | [1] | 74,272 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives
|
||||||||
Derivative [Line Items] | ||||||||
Fair Value | 4,102 | 2,792 | ||||||
Net Exposure | 4,102 | [1] | 2,792 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Foreign exchange forwards | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 425,503 | 385,470 | ||||||
Fair Value | 12,216 | 11,864 | ||||||
Net Exposure | 12,216 | [1] | 11,864 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Foreign exchange forwards | Other liability
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 363,247 | 356,026 | ||||||
Fair Value | (9,605) | (9,930) | ||||||
Net Exposure | (9,605) | [1] | (9,930) | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Client foreign currency options | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 91,765 | 132,237 | ||||||
Fair Value | 485 | 1,189 | ||||||
Net Exposure | 485 | [1] | 1,189 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Client foreign currency options | Other liability
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 91,765 | 132,237 | ||||||
Fair Value | (485) | (1,189) | ||||||
Net Exposure | (485) | [1] | (1,189) | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Loan conversion options | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 9,789 | 9,782 | ||||||
Fair Value | 1,529 | 890 | ||||||
Net Exposure | 1,529 | [1] | 890 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Client interest rate derivatives | Other assets
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 153,074 | 144,950 | ||||||
Fair Value | 653 | 558 | ||||||
Net Exposure | 653 | [1] | 558 | [1] | ||||
Derivatives not designated as hedging instruments | Other derivative instruments | Other derivatives | Client interest rate derivatives | Other liability
|
||||||||
Derivative [Line Items] | ||||||||
Notional or Contractual Amount | 153,074 | 144,950 | ||||||
Fair Value | (691) | (590) | ||||||
Net Exposure | $ (691) | [1] | $ (590) | [1] | ||||
|
Stockholders' Equity and EPS (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic EPS to Diluted EPS | The following is a reconciliation of basic EPS to diluted EPS for the three months ended March 31, 2013 and 2012:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares Excluded from Diluted EPS Calculation as They Were Deemed to be Anti-Dilutive | The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation as they were deemed to be antidilutive for the three months ended March 31, 2013 and 2012:
|
Investment Securities - Additional Information (Detail)
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Schedule of Available-for-sale Securities [Line Items] | |
Federal statutory income tax rate | 35.00% |
Lower Limit
|
|
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-backed securities contractual maturities (in years) | 10 |
Upper Limit
|
|
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-backed securities contractual maturities (in years) | 30 |
Share-Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Closing stock price | $ 70.94 | |
Option Exercised, Total Intrinsic Value | $ 4.7 | $ 11.9 |
Other Noninterest Income and Other Noninterest Expense - Summary of Other Noninterest Income (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|||||||
Other Income and Expenses [Abstract] | ||||||||
Unused commitment fees | $ 3,476 | $ 3,055 | ||||||
Fund management fees | 2,769 | 2,828 | ||||||
Service-based fee income | 1,804 | 2,374 | ||||||
(Losses) gains on revaluation of foreign currency instruments | (7,064) | [1] | 1,885 | [1] | ||||
Currency revaluation (losses) gains | (55) | [2] | 615 | [2] | ||||
Other | 2,597 | 2,321 | ||||||
Total other noninterest income | $ 3,527 | $ 13,078 | ||||||
|
Related Parties (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Gold Hill 08 Funds
|
||
Related Party Transaction [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 85 | |
Gold Hill 08 Funds
|
||
Related Party Transaction [Line Items] | ||
Loan amount outstanding to related party during period, maximum | 31 | |
Line of credit facility amount syndicated to another lender | 35 | |
Interest rate associated with related party loan facility | national Prime plus one percent | |
Revolving line of credit facility, outstanding amount | $ 31 | $ 31 |
Gold Hill Capital 2008, LLC
|
||
Related Party Transaction [Line Items] | ||
SVBFG Ownership of each Fund | 83.80% |
Stockholders' Equity and EPS - Reconciliation of Basic EPS to Diluted EPS (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Numerator: | ||
Net income available to common stockholders | $ 40,891 | $ 34,790 |
Denominator: | ||
Weighted average common shares outstanding-basic (in shares) | 44,802 | 43,780 |
Denominator for diluted calculation (in shares) | 45,393 | 44,460 |
Earnings per common share: | ||
Basic (dollars per share) | $ 0.91 | $ 0.79 |
Diluted (dollars per share) | $ 0.90 | $ 0.78 |
Stock options and ESPP
|
||
Denominator: | ||
Weighted average effect of dilutive securities (in shares) | 402 | 501 |
Restricted stock units
|
||
Denominator: | ||
Weighted average effect of dilutive securities (in shares) | 189 | 179 |
Investment Securities - Components of Gains and Losses (Realized and Unrealized) on Investment Securities (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | $ 35,822 | $ 30,116 | ||||
Gross losses on investment securities | (8,384) | (22,277) | ||||
Gains on investment securities, net | 27,438 | 7,839 | ||||
Gains attributable to noncontrolling interests, including carried interest | 22,296 | 7,338 | ||||
Available-for-sale Securities
|
||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | 0 | [1] | 21 | [1] | ||
Gross losses on investment securities | (45) | [1] | (895) | [1] | ||
Marketable Securities | Fair value accounting
|
||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | 1,918 | 316 | ||||
Gross losses on investment securities | (2,073) | 0 | ||||
Non-marketable securities | Fair value accounting | Venture capital and private equity fund investments
|
||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | 27,381 | 26,110 | ||||
Gross losses on investment securities | (4,742) | (13,915) | ||||
Non-marketable securities | Fair value accounting | Other venture capital investments
|
||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | 2,640 | 1,777 | ||||
Gross losses on investment securities | (464) | (6,663) | ||||
Non-marketable securities | Fair value accounting | Other investments
|
||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | 0 | 21 | ||||
Non-marketable securities | Equity method accounting | Other investments
|
||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | 2,715 | 1,422 | ||||
Gross losses on investment securities | (245) | (376) | ||||
Non-marketable securities | Cost method accounting | Venture capital and private equity fund investments
|
||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | 1,023 | 407 | ||||
Gross losses on investment securities | (469) | (363) | ||||
Non-marketable securities | Cost method accounting | Other investments
|
||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on investment securities | 145 | 42 | ||||
Gross losses on investment securities | $ (346) | $ (65) | ||||
|
Short-Term Borrowings and Long-Term Debt - Additional Information (Detail) (USD $)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Debt Disclosure [Line Items] | ||
Interest expense, debt | $ 5,794,000 | $ 6,356,000 |
Weighted average interest rates associated with short-term borrowings | 0.12% | |
Federal Home Loan Bank Advances | San Francisco
|
||
Debt Disclosure [Line Items] | ||
Market value of collateral pledged | 1,500,000,000 | |
Federal Reserve Bank Advances
|
||
Debt Disclosure [Line Items] | ||
Market value of collateral pledged | $ 673,000,000 |
Loans and Allowance for Loan Losses - Allowance for Loan Losses Individually and Collectively Evaluated for Impairment (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | $ 7,728 | $ 6,261 |
Collectively Evaluated for Impairment | 104,477 | 104,390 |
Commercial loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 7,304 | 6,013 |
Collectively Evaluated for Impairment | 97,677 | 97,400 |
Commercial loans | Software
|
||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 2,087 | 762 |
Collectively Evaluated for Impairment | 42,923 | 41,886 |
Commercial loans | Hardware
|
||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 5,016 | 5,251 |
Collectively Evaluated for Impairment | 22,853 | 24,510 |
Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 10,482 | 9,963 |
Commercial loans | Life science
|
||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 201 | 0 |
Collectively Evaluated for Impairment | 13,745 | 13,606 |
Commercial loans | Premium wine
|
||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 3,699 | 3,523 |
Commercial loans | Other
|
||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 3,975 | 3,912 |
Consumer loans
|
||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 424 | 248 |
Collectively Evaluated for Impairment | $ 6,800 | $ 6,990 |
Investment Securities - Major Components of Investment Securities Portfolio (Parenthetical) (Detail) (USD $)
|
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|||||||||||||||||||||
Fair value accounting | Other venture capital investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | $ 124,786,000 | [1] | $ 127,091,000 | [1] | ||||||||||||||||||
Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 701,076,000 | [2] | 665,921,000 | [2] | ||||||||||||||||||
Equity method accounting | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 140,607,000 | [3] | 139,330,000 | [3] | ||||||||||||||||||
Cost method accounting | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 19,186,000 | 19,721,000 | ||||||||||||||||||||
Cost method accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Number of investments | 309 | 324 | ||||||||||||||||||||
Non-marketable securities | 160,870,000 | [4] | 161,884,000 | [4] | ||||||||||||||||||
SVB Strategic Investors Fund, LP | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 32,142,000 | 32,850,000 | ||||||||||||||||||||
Percentage of ownership | 12.60% | 12.60% | ||||||||||||||||||||
SVB Strategic Investors Fund II, LP | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 92,834,000 | 91,294,000 | ||||||||||||||||||||
Percentage of ownership | 8.60% | 8.60% | ||||||||||||||||||||
SVB Strategic Investors Fund III, LP | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 212,392,000 | 209,696,000 | ||||||||||||||||||||
Percentage of ownership | 5.90% | 5.90% | ||||||||||||||||||||
SVB Strategic Investors Fund IV, LP | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 189,369,000 | 169,931,000 | ||||||||||||||||||||
Percentage of ownership | 5.00% | 5.00% | ||||||||||||||||||||
Strategic Investors Fund V Funds | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 51,985,000 | 40,622,000 | ||||||||||||||||||||
SVB Capital Preferred Return Fund, LP | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 54,919,000 | 53,643,000 | ||||||||||||||||||||
Percentage of ownership | 20.00% | 20.00% | ||||||||||||||||||||
SVB Capital—NT Growth Partners, LP | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 59,835,000 | 60,120,000 | ||||||||||||||||||||
Percentage of ownership | 33.00% | 33.00% | ||||||||||||||||||||
SVB Capital Partners II, LP | Fair value accounting | Other venture capital investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 80,966,000 | [5] | 79,761,000 | [5] | ||||||||||||||||||
Percentage of ownership | 5.10% | [5] | 5.10% | [5] | ||||||||||||||||||
SVB Capital Partners II, LP | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 1,138,000 | [6] | 1,303,000 | [6] | ||||||||||||||||||
Percentage of ownership | 5.10% | [6] | 5.10% | [6] | ||||||||||||||||||
SVB Capital Partners II, LP | Fair value accounting | Direct ownership interest | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 1.30% | |||||||||||||||||||||
SVB Capital Partners II, LP | Fair value accounting | Indirect ownership interest | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 3.80% | |||||||||||||||||||||
Other private equity fund | Fair value accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 6,462,000 | [7] | 6,462,000 | [7] | ||||||||||||||||||
Percentage of ownership | 58.20% | [7] | 58.20% | [7] | ||||||||||||||||||
Other private equity fund | Fair value accounting | Direct ownership interest | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 41.50% | |||||||||||||||||||||
Silicon Valley BancVentures, LP | Fair value accounting | Other venture capital investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 39,971,000 | 43,493,000 | ||||||||||||||||||||
Percentage of ownership | 10.70% | 10.70% | ||||||||||||||||||||
SVB Capital Shanghai Yangpu Venture Capital Fund | Fair value accounting | Other venture capital investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 3,849,000 | 3,837,000 | ||||||||||||||||||||
Percentage of ownership | 6.80% | 6.80% | ||||||||||||||||||||
Gold Hill Venture Lending 03, LP | Equity method accounting | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 9.30% | [8] | 9.30% | [8] | ||||||||||||||||||
Non-marketable securities | 11,794,000 | [8] | 9,413,000 | [8] | ||||||||||||||||||
Gold Hill Venture Lending 03, LP | Equity method accounting | Direct ownership interest | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 4.80% | |||||||||||||||||||||
Gold Hill Venture Lending 03, LP | Equity method accounting | Indirect ownership interest | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 4.50% | |||||||||||||||||||||
Gold Hill Capital 2008, LP | Equity method accounting | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 15.50% | [9] | 15.50% | [9] | ||||||||||||||||||
Non-marketable securities | 20,047,000 | [9] | 20,893,000 | [9] | ||||||||||||||||||
Gold Hill Capital 2008, LP | Equity method accounting | Direct ownership interest | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 11.50% | |||||||||||||||||||||
Gold Hill Capital 2008, LP | Equity method accounting | Indirect ownership interest | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 4.00% | |||||||||||||||||||||
China Joint Venture investment | Equity method accounting | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 50.00% | 50.00% | ||||||||||||||||||||
Non-marketable securities | 79,210,000 | 78,545,000 | ||||||||||||||||||||
Other investments | Equity method accounting | Other investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | 29,556,000 | 30,479,000 | ||||||||||||||||||||
Upper Limit | Cost method accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Percentage of ownership | 5.00% | 5.00% | ||||||||||||||||||||
Other Than Temporarily Impaired Securities | Cost method accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Recognized other-than-temporary impairment (OTTI) losses | 500,000 | |||||||||||||||||||||
Number of other-than-temporary impaired investments | 16 | |||||||||||||||||||||
Estimated Fair Value | Cost method accounting | Venture capital and private equity fund investments
|
||||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||||
Non-marketable securities | $ 200,000,000 | |||||||||||||||||||||
|
Basis of Presentation
|
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Basis of Presentation | Basis of Presentation SVB Financial Group is a diversified financial services company, as well as a bank holding company and financial holding company. SVB Financial was incorporated in the state of Delaware in March 1999. Through our various subsidiaries and divisions, we offer a variety of banking and financial products and services to support our clients of all sizes and stages throughout their life cycles. In these notes to our consolidated financial statements, when we refer to “SVB Financial Group,” “SVBFG”, the “Company,” “we,” “our,” “us” or use similar words, we mean SVB Financial Group and all of its subsidiaries collectively, including Silicon Valley Bank (the “Bank”), unless the context requires otherwise. When we refer to “SVB Financial” or the “Parent” we are referring only to the parent company, SVB Financial Group, unless the context requires otherwise. The accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature that are, in the opinion of management, necessary to fairly present our financial position, results of operations and cash flows in accordance with GAAP. Such unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of results to be expected for any future periods. These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012 (“2012 Form 10-K”). The accompanying unaudited interim consolidated financial statements have been prepared on a consistent basis with the accounting policies described in Consolidated Financial Statements and Supplementary Data—Note 2—“Summary of Significant Accounting Policies” under Part II, Item 8 of our 2012 Form 10-K. The preparation of unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates may change as new information is obtained. Significant items that are subject to such estimates include measurements of fair value, the valuation of non-marketable securities, the valuation of equity warrant assets, the adequacy of the allowance for loan losses and reserve for unfunded credit commitments, and the recognition and measurement of income tax assets and liabilities. Principles of Consolidation and Presentation Our consolidated financial statements include the accounts of SVB Financial Group and entities in which we have a controlling financial interest. We determine whether we have a controlling financial interest in an entity by evaluating whether the entity is a voting interest entity or a variable interest entity and whether the accounting guidance requires consolidation. All significant intercompany accounts and transactions have been eliminated. Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity’s operations. For these types of entities, the Company’s determination of whether it has a controlling interest is based on ownership of the majority of the entities’ voting equity interest or through control of management of the entities. VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. We determine whether we have a controlling financial interest in a VIE by considering whether our involvement with the VIE is significant and whether we are the primary beneficiary based on the following:
Voting interest entities in which we have a controlling financial interest or VIEs in which we are the primary beneficiary are consolidated into our financial statements. We have not provided financial or other support during the periods presented to any VIE that we were not previously contractually required to provide. We are variable interest holders in certain partnerships for which we are the primary beneficiary. We perform on-going reassessments on the status of the entities and whether facts or circumstances have changed in relation to previously evaluated voting interest entities and our involvement in VIEs which could cause our consolidation conclusion to change. Impact of Adopting ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities In December 2011, the FASB issued a new accounting standard, which requires new disclosures surrounding derivative instruments and certain financial instruments that are offset on the statement of financial position, or are eligible for offset subject to a master netting arrangement. This standard was issued concurrent with the IASB’s issuance of a similar standard with the objective of converged disclosure guidance. The guidance is effective on a retrospective basis for the interim and annual reporting periods beginning on or after January 1, 2013, and was therefore adopted in the first quarter of 2013. The standard increased the disclosure requirements for derivative instruments and certain financial instruments that are subject to master netting arrangements, and did not have any impact on our financial position, results of operations or stockholders' equity. See Note 8 - “Derivative Financial Instruments” for further details. Impact of Adopting ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income In February 2013, the FASB issued a new accounting standard, which requires new disclosures surrounding the effect of reclassifications out of accumulated other comprehensive income. This standard requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component and by the respective line items of net income. The guidance was effective on a prospective basis for the interim and annual reporting periods beginning after January 1, 2013, and was therefore adopted in the first quarter of 2013. This standard increased the disclosure requirements for reclassifications out of accumulated other comprehensive income, and did not have any impact on our financial position, results of operations or stockholders’ equity. See our "Interim Consolidated Statements of Income" for more details. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentations. |
Loans and Allowance for Loan Losses - Credit Quality Indicators, Broken out by Portfolio Segment and Class of Financing Receivables (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | $ 8,922,829 | $ 9,024,248 |
Commercial loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 8,098,722 | 8,193,676 |
Commercial loans | Software
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 3,490,963 | 3,293,899 |
Commercial loans | Hardware
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,233,181 | 1,129,484 |
Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,335,561 | 1,749,903 |
Commercial loans | Life science
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,028,275 | 1,076,792 |
Commercial loans | Premium wine
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 606,386 | 559,284 |
Commercial loans | Other
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 404,356 | 384,314 |
Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 824,107 | 830,572 |
Consumer loans | Real estate secured loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 724,849 | 685,493 |
Consumer loans | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 99,258 | 145,079 |
Pass
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 8,352,295 | 8,428,907 |
Pass | Commercial loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 7,559,457 | 7,632,178 |
Pass | Commercial loans | Software
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 3,250,004 | 3,050,449 |
Pass | Commercial loans | Hardware
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,084,742 | 970,802 |
Pass | Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 1,334,740 | 1,748,663 |
Pass | Commercial loans | Life science
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 916,649 | 956,276 |
Pass | Commercial loans | Premium wine
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 590,448 | 545,697 |
Pass | Commercial loans | Other
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 382,874 | 360,291 |
Pass | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 792,838 | 796,729 |
Pass | Consumer loans | Real estate secured loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 700,850 | 663,911 |
Pass | Consumer loans | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 91,988 | 132,818 |
Performing (Criticized)
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 526,188 | 557,062 |
Performing (Criticized) | Commercial loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 500,454 | 526,559 |
Performing (Criticized) | Commercial loans | Software
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 234,865 | 240,187 |
Performing (Criticized) | Commercial loans | Hardware
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 125,773 | 136,819 |
Performing (Criticized) | Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 821 | 1,240 |
Performing (Criticized) | Commercial loans | Life science
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 111,172 | 120,516 |
Performing (Criticized) | Commercial loans | Premium wine
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 11,635 | 9,189 |
Performing (Criticized) | Commercial loans | Other
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 16,188 | 18,608 |
Performing (Criticized) | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 25,734 | 30,503 |
Performing (Criticized) | Consumer loans | Real estate secured loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 19,556 | 19,343 |
Performing (Criticized) | Consumer loans | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 6,178 | 11,160 |
Impaired
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 44,346 | 38,279 |
Impaired | Commercial loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 38,811 | 34,939 |
Impaired | Commercial loans | Software
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 6,094 | 3,263 |
Impaired | Commercial loans | Hardware
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 22,666 | 21,863 |
Impaired | Commercial loans | Venture capital/private equity
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 0 | 0 |
Impaired | Commercial loans | Life science
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 454 | 0 |
Impaired | Commercial loans | Premium wine
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 4,303 | 4,398 |
Impaired | Commercial loans | Other
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 5,294 | 5,415 |
Impaired | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 5,535 | 3,340 |
Impaired | Consumer loans | Real estate secured loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 4,443 | 2,239 |
Impaired | Consumer loans | Consumer loans
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | $ 1,092 | $ 1,101 |