Delaware | 000-15637 | 91-1962278 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.142-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 | Release, dated January 22, 2015, announcing the Company's financial results for the fourth quarter and year ended December 31, 2014. |
Date: January 22, 2015 | SVB FINANCIAL GROUP | |||||
By: | /s/ KAMRAN HUSAIN | |||||
Name: | Kamran Husain | |||||
Title: | Chief Accounting Officer and Principal Accounting Officer |
Exhibit No. | Description |
99.1* | Release, dated January 22, 2015, announcing the Company’s financial results for the fourth quarter and year ended December 31, 2014. |
* | This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934. |
3003 Tasman Drive, Santa Clara, CA 95054 | Contact: | |||||||
www.svb.com | Meghan O'Leary | |||||||
Investor Relations | ||||||||
For release at 1:00 P.M. (Pacific Time) | (408) 654-6364 | |||||||
January 22, 2015 | ||||||||
NASDAQ: SIVB |
• | Average loan balances of $12.7 billion, an increase of $1.3 billion (or 11.0 percent). Period-end balances were $14.4 billion, an increase of $2.4 billion (or 20.0 percent). |
• | Average investment securities, excluding non-marketable and other securities, of $20.6 billion, an increase of $2.4 billion (or 13.3 percent). |
• | Average total client funds (consisting of both on-balance sheet deposits and off-balance sheet client investment funds) of $64.5 billion, an increase of $3.7 billion (or 6.2 percent) with average on-balance sheet deposits increasing by $2.9 billion (or 9.6 percent) and average off-balance sheet client investment funds increasing by $0.9 billion (or 2.8 percent). |
• | Net interest income (fully taxable equivalent basis) of $235.2 million, an increase of $14.2 million (or 6.4 percent). |
• | Net interest margin of 2.66 percent, a decrease of 7 basis points. |
• | Provision for loan losses of $40.4 million, compared to $16.6 million. |
• | Gains on investment securities of $94.8 million, compared to $5.6 million. Non-GAAP gains on investment securities, net of noncontrolling interests, were $16.6 million, compared to losses of $1.1 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures”.) |
• | Gains on equity warrant assets of $20.2 million, compared to $13.2 million. |
• | Non-GAAP core fee income increased $2.0 million (or 3.7 percent) to $55.3 million. |
• | Noninterest expense of $189.0 million, an increase of $7.0 million (or 3.9 percent). |
(Dollars in millions, except share data, employees and ratios) | Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
Income statement: | ||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 1.14 | $ | 1.22 | $ | 1.04 | $ | 1.95 | $ | 1.27 | $ | 5.31 | $ | 4.70 | ||||||||||||||
Net income available to common stockholders | 58.8 | 63.0 | 50.8 | 91.3 | 58.8 | 263.9 | 215.9 | |||||||||||||||||||||
Net interest income | 234.7 | 220.6 | 205.0 | 196.3 | 187.0 | 856.6 | 697.3 | |||||||||||||||||||||
Provision for loan losses | 40.4 | 16.6 | 1.9 | 0.5 | 28.7 | 59.5 | 63.7 | |||||||||||||||||||||
Noninterest income | 167.6 | 80.2 | 14.2 | 310.2 | 238.7 | 572.2 | 673.2 | |||||||||||||||||||||
Noninterest expense | 189.0 | 182.0 | 173.4 | 172.4 | 168.9 | 716.9 | 621.7 | |||||||||||||||||||||
Non-GAAP net income available to common stockholders (1) | 70.3 | 63.0 | 50.8 | 91.3 | 58.8 | 275.4 | 215.9 | |||||||||||||||||||||
Non-GAAP diluted earnings per common share (1) | 1.37 | 1.22 | 1.04 | 1.95 | 1.27 | 5.54 | 4.70 | |||||||||||||||||||||
Non-GAAP core fee income (1) | 55.3 | 53.3 | 50.0 | 50.9 | 49.0 | 209.6 | 175.5 | |||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (1) | 104.3 | 75.3 | 49.5 | 123.5 | 100.9 | 352.5 | 330.3 | |||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests (1) | 183.5 | 177.2 | 168.2 | 169.1 | 165.2 | 698.0 | 609.0 | |||||||||||||||||||||
Fully taxable equivalent: | ||||||||||||||||||||||||||||
Net interest income (2) | $ | 235.2 | $ | 221.0 | $ | 205.4 | $ | 196.8 | $ | 187.4 | $ | 858.3 | $ | 699.1 | ||||||||||||||
Net interest margin | 2.66 | % | 2.73 | % | 2.79 | % | 3.13 | % | 3.20 | % | 2.81 | % | 3.29 | % | ||||||||||||||
Balance sheet: | ||||||||||||||||||||||||||||
Average total assets | $ | 37,590.2 | $ | 34,598.3 | $ | 31,745.6 | $ | 27,767.6 | $ | 25,331.4 | $ | 32,964.2 | $ | 23,210.7 | ||||||||||||||
Average loans, net of unearned income | 12,703.4 | 11,439.5 | 11,080.6 | 10,767.7 | 10,138.3 | 11,502.9 | 9,351.4 | |||||||||||||||||||||
Average available-for-sale securities | 13,526.5 | 12,446.8 | 13,397.3 | 12,248.9 | 11,004.3 | 12,907.1 | 10,598.9 | |||||||||||||||||||||
Average held-to-maturity securities (3) | 7,115.3 | 5,775.6 | 1,793.7 | — | — | 3,696.4 | — | |||||||||||||||||||||
Average noninterest-bearing demand deposits | 23,701.1 | 21,502.5 | 19,472.5 | 16,880.5 | 15,240.7 | 20,410.9 | 13,892.0 | |||||||||||||||||||||
Average interest-bearing deposits | 8,889.0 | 8,223.8 | 7,704.6 | 6,795.9 | 6,247.5 | 7,909.9 | 5,727.2 | |||||||||||||||||||||
Average total deposits | 32,590.0 | 29,726.3 | 27,177.1 | 23,676.4 | 21,488.2 | 28,320.8 | 19,619.2 | |||||||||||||||||||||
Average long-term debt | 453.8 | 454.2 | 454.7 | 455.2 | 455.8 | 454.5 | 456.5 | |||||||||||||||||||||
Period-end total assets | 39,344.6 | 36,041.0 | 33,309.0 | 29,711.0 | 26,417.2 | 39,344.6 | 26,417.2 | |||||||||||||||||||||
Period-end loans, net of unearned income | 14,384.3 | 12,017.2 | 11,348.7 | 10,833.9 | 10,906.4 | 14,384.3 | 10,906.4 | |||||||||||||||||||||
Period-end available-for-sale securities | 13,540.7 | 13,333.4 | 11,672.8 | 12,843.1 | 11,986.8 | 13,540.7 | 11,986.8 | |||||||||||||||||||||
Period-end held-to-maturity securities | 7,421.0 | 6,662.0 | 5,463.9 | — | — | 7,421.0 | — | |||||||||||||||||||||
Period-end non-marketable and other securities | 1,728.9 | 1,703.6 | 1,757.2 | 1,770.5 | 1,595.5 | 1,728.9 | 1,595.5 | |||||||||||||||||||||
Period-end noninterest-bearing demand deposits | 24,583.7 | 22,461.1 | 20,235.5 | 18,314.8 | 15,894.4 | 24,583.7 | 15,894.4 | |||||||||||||||||||||
Period-end interest-bearing deposits | 9,759.8 | 8,662.1 | 8,117.0 | 7,162.1 | 6,578.6 | 9,759.8 | 6,578.6 | |||||||||||||||||||||
Period-end total deposits | 34,343.5 | 31,123.1 | 28,352.5 | 25,476.9 | 22,473.0 | 34,343.5 | 22,473.0 | |||||||||||||||||||||
Off-balance sheet: | ||||||||||||||||||||||||||||
Average client investment funds | $ | 31,868.1 | $ | 30,988.2 | $ | 30,152.6 | $ | 27,134.7 | $ | 26,224.5 | $ | 30,036.1 | $ | 24,219.2 | ||||||||||||||
Period-end client investment funds | 32,367.7 | 31,143.9 | 30,376.0 | 28,237.8 | 26,363.0 | 32,367.7 | 26,363.0 | |||||||||||||||||||||
Total unfunded credit commitments | 14,705.8 | 14,631.6 | 13,570.0 | 12,371.3 | 11,470.7 | 14,705.8 | 11,470.7 | |||||||||||||||||||||
Earnings ratios: | ||||||||||||||||||||||||||||
Return on average assets (annualized) (4) | 0.62 | % | 0.72 | % | 0.64 | % | 1.33 | % | 0.92 | % | 0.80 | % | 0.93 | % | ||||||||||||||
Non-GAAP return on average assets (annualized) (1) | 0.74 | 0.72 | 0.64 | 1.33 | 0.92 | 0.84 | 0.93 | |||||||||||||||||||||
Return on average SVBFG stockholders’ equity (annualized) (5) | 8.25 | 9.16 | 8.50 | 17.63 | 11.60 | 10.46 | 11.20 | |||||||||||||||||||||
Non-GAAP return on average SVBFG stockholders’ equity (annualized) (1) | 9.86 | 9.16 | 8.50 | 17.63 | 11.60 | 10.91 | 11.20 | |||||||||||||||||||||
Asset quality ratios: | ||||||||||||||||||||||||||||
Allowance for loan losses as a % of total gross loans | 1.14 | % | 1.07 | % | 1.06 | % | 1.13 | % | 1.30 | % | 1.14 | % | 1.30 | % | ||||||||||||||
Allowance for loan losses for performing loans as a % of total gross performing loans | 1.04 | 1.05 | 1.02 | 1.07 | 1.11 | 1.04 | 1.11 | |||||||||||||||||||||
Gross charge-offs as a % of average total gross loans (annualized) | 0.15 | 0.37 | 0.23 | 0.79 | 0.52 | 0.37 | 0.45 | |||||||||||||||||||||
Net charge-offs as a % of average total gross loans (annualized) | 0.13 | 0.28 | 0.17 | 0.74 | 0.41 | 0.32 | 0.33 | |||||||||||||||||||||
Other ratios: | ||||||||||||||||||||||||||||
GAAP operating efficiency ratio (6) | 46.97 | % | 60.52 | % | 79.14 | % | 34.04 | % | 39.66 | % | 50.17 | % | 45.36 | % | ||||||||||||||
Non-GAAP operating efficiency ratio (1) | 54.06 | 59.83 | 65.97 | 52.81 | 57.29 | 57.65 | 59.16 | |||||||||||||||||||||
Total risk-based capital ratio | 13.87 | 14.97 | 15.36 | 13.41 | 13.13 | 13.87 | 13.13 | |||||||||||||||||||||
Bank total risk-based capital ratio | 12.09 | 13.06 | 13.41 | 11.47 | 11.32 | 12.09 | 11.32 | |||||||||||||||||||||
Tier 1 leverage ratio | 7.74 | 8.22 | 8.74 | 7.99 | 8.31 | 7.74 | 8.31 | |||||||||||||||||||||
Bank tier 1 leverage ratio | 6.65 | 7.05 | 7.51 | 6.72 | 7.04 | 6.65 | 7.04 | |||||||||||||||||||||
Period-end loans, net of unearned income, to deposits ratio | 41.88 | 38.61 | 40.03 | 42.52 | 48.53 | 41.88 | 48.53 | |||||||||||||||||||||
Average loans, net of unearned income, to average deposits ratio | 38.98 | 38.48 | 40.77 | 45.48 | 47.18 | 40.62 | 47.66 | |||||||||||||||||||||
Book value per common share (7) | $ | 55.33 | $ | 53.56 | $ | 52.78 | $ | 45.59 | $ | 42.93 | $ | 55.33 | $ | 42.93 | ||||||||||||||
Other statistics: | ||||||||||||||||||||||||||||
Average full-time equivalent employees | 1,907 | 1,850 | 1,768 | 1,735 | 1,690 | 1,815 | 1,669 | |||||||||||||||||||||
Period-end full-time equivalent employees | 1,914 | 1,881 | 1,786 | 1,737 | 1,704 | 1,914 | 1,704 |
(1) | To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP measures. A reconciliation of these non-GAAP measures to GAAP is provided at the end of this release under the section “Use of Non-GAAP Financial Measures.” |
(2) | Interest income on non-taxable investments is presented on a fully taxable equivalent basis using the federal statutory income tax rate of 35.0 percent. The taxable equivalent adjustments were $0.4 million for each of the quarters ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013. The taxable equivalent adjustments were $1.7 million for both the years ended December 31, 2014 and 2013, respectively. |
(3) | Year ended December 31, 2014 average balances are reflective of the re-designation from available-for-sale to held-to-maturity effective June 1, 2014. |
(4) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and annual average assets. |
(5) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and annual average SVBFG stockholders’ equity. |
(6) | Ratio is calculated by dividing noninterest expense by total 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. |
Q4'14 compared to Q3'14 | ||||||||||||
Increase (decrease) due to change in | ||||||||||||
(Dollars in thousands) | Volume | Rate | Total | |||||||||
Interest income: | ||||||||||||
Short-term investment securities | $ | (506 | ) | $ | (53 | ) | $ | (559 | ) | |||
AFS / HTM investment securities | 10,542 | (4,092 | ) | 6,450 | ||||||||
Loans | 16,489 | (7,980 | ) | 8,509 | ||||||||
Increase (decrease) in interest income, net | 26,525 | (12,125 | ) | 14,400 | ||||||||
Interest expense: | ||||||||||||
Deposits | 536 | (316 | ) | 220 | ||||||||
Short-term borrowings | 733 | (730 | ) | 3 | ||||||||
Long-term debt | (2 | ) | 6 | 4 | ||||||||
Increase (decrease) in interest expense, net | 1,267 | (1,040 | ) | 227 | ||||||||
Increase (decrease) in net interest income | $ | 25,258 | $ | (11,085 | ) | $ | 14,173 |
• | An increase in interest income from loans of $8.5 million to $161.8 million for the fourth quarter of 2014. The increase was primarily reflective of the increase in average loan balances of $1.3 billion, offset by a decrease in loan yields. Our overall loan yields decreased by 27 basis points, from 5.32 percent to 5.05 percent, attributable to a 17 basis point decrease in gross loan yields and 10 basis points from lower loan fee yields, primarily attributable to a $1.8 million decrease in total prepayment fees during the quarter. Gross loan yields, excluding loan interest recoveries, decreased to 4.22 percent from 4.39 percent, reflective of the continued shift in the mix of our overall loan portfolio. Consistent with recent quarters, our average loan growth during the fourth quarter of 2014 was primarily driven by venture capital/private equity loans which, on average, tend to have lower yields. Our loan yields were also impacted by the overall low market rate environment and continued competition in the marketplace. |
• | An increase in interest income from our fixed income securities in our available-for-sale ("AFS") and held-to-maturity ("HTM") portfolios of $6.5 million to $81.2 million for the fourth quarter of 2014. Continued significant deposit growth through the fourth quarter of 2014, contributed to a $2.4 billion increase in average fixed income investment securities resulting in increased interest income, partially offset by a decrease in investment yields. The overall yield on our fixed income investment securities portfolio decreased 7 basis points. Lower reinvestment yields, resulting from a lower overall market rate environment and an increase in purchases of U.S. Treasury securities during the fourth quarter of 2014, contributed to the decline in yields. The decline was also impacted by an increase in premium amortization expense of $2.3 million during the fourth quarter of 2014 as a result of increased prepayments reflective of the decrease in market rates. The remaining |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands, except ratios) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||
Allowance for loan losses, beginning balance | $ | 129,061 | $ | 120,728 | $ | 124,734 | $ | 142,886 | $ | 110,651 | ||||||||||
Provision for loan losses | 40,435 | 16,610 | 28,670 | 59,486 | 63,693 | |||||||||||||||
Gross loan charge-offs | (4,979 | ) | (10,657 | ) | (13,516 | ) | (43,168 | ) | (42,666 | ) | ||||||||||
Loan recoveries | 842 | 2,380 | 2,998 | 6,155 | 11,208 | |||||||||||||||
Allowance for loan losses, ending balance | $ | 165,359 | $ | 129,061 | $ | 142,886 | $ | 165,359 | $ | 142,886 | ||||||||||
Provision for loan losses as a percentage of period-end total gross loans (annualized) | 1.11 | % | 0.54 | % | 1.03 | % | 0.41 | % | 0.58 | % | ||||||||||
Gross loan charge-offs as a percentage of average total gross loans (annualized) | 0.15 | 0.37 | 0.52 | 0.37 | 0.45 | |||||||||||||||
Net loan charge-offs as a percentage of average total gross loans (annualized) | 0.13 | 0.28 | 0.41 | 0.32 | 0.33 | |||||||||||||||
Allowance for loan losses as a percentage of period-end total gross loans | 1.14 | 1.07 | 1.30 | 1.14 | 1.30 | |||||||||||||||
Period-end total gross loans | $ | 14,488,766 | $ | 12,112,474 | $ | 10,995,268 | $ | 14,488,766 | $ | 10,995,268 | ||||||||||
Average total gross loans | 12,800,410 | 11,528,172 | 10,222,203 | 11,592,052 | 9,431,128 |
• | Gains on investment securities of $94.8 million for the fourth quarter of 2014, compared to gains of $5.6 million for the third quarter of 2014. Net of noncontrolling interests, non-GAAP net gains on investment securities were $16.6 million for the fourth quarter of 2014 compared to net losses of $1.1 million for the third quarter of 2014. The non-GAAP net gains, net of noncontrolling interests, of $16.6 million for the fourth quarter of 2014 were primarily driven by the following: |
◦ | Gains of $10.7 million from our strategic and other investments, primarily driven by strong distributions from our strategic venture capital fund investments. |
◦ | Gains of $5.9 million from our managed funds of funds, primarily related to unrealized valuation adjustments from three of our managed funds of funds. |
Three months ended December 31, 2014 | ||||||||||||||||||||||||
(Dollars in thousands) | Managed Funds Of Funds | Managed Direct Venture Funds | Debt Funds | Available- For-Sale Securities | Strategic and Other Investments | Total | ||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 70,378 | $ | 15,307 | $ | (428 | ) | $ | (1,187 | ) | $ | 10,717 | $ | 94,787 | ||||||||||
Less: income attributable to noncontrolling interests, including carried interest | 64,442 | 13,783 | — | — | — | 78,225 | ||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 5,936 | $ | 1,524 | $ | (428 | ) | $ | (1,187 | ) | $ | 10,717 | $ | 16,562 | ||||||||||
Three months ended September 30, 2014 | ||||||||||||||||||||||||
(Dollars in thousands) | Managed Funds Of Funds | Managed Direct Venture Funds | Debt Funds | Available- For-Sale Securities | Strategic and Other Investments | Total | ||||||||||||||||||
Total gains (losses) on investment securities, net | $ | 42,159 | $ | (39,973 | ) | $ | 973 | $ | (990 | ) | $ | 3,475 | $ | 5,644 | ||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 38,187 | (31,429 | ) | (1 | ) | — | — | 6,757 | ||||||||||||||||
Non-GAAP net (losses) gains on investment securities, net of noncontrolling interests | $ | 3,972 | $ | (8,544 | ) | $ | 974 | $ | (990 | ) | $ | 3,475 | $ | (1,113 | ) |
• | Net gains on derivative instruments were $33.4 million for the fourth quarter of 2014, compared to $26.5 million for the third quarter of 2014. The following table provides a summary of our net gains on derivative instruments: |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||
Net gains on equity warrant assets | $ | 20,153 | $ | 13,157 | $ | 16,626 | $ | 71,012 | $ | 46,101 | ||||||||||
Gains (losses) on foreign exchange forward contracts, net: | ||||||||||||||||||||
Gains (losses) on client foreign exchange forward contracts, net | 3,723 | 886 | (215 | ) | 5,081 | (452 | ) | |||||||||||||
Gains (losses) on internal foreign exchange forward contracts, net (1) | 9,560 | 12,529 | (2,702 | ) | 21,598 | (4,213 | ) | |||||||||||||
Total gains (losses) on foreign exchange forward contracts, net | 13,283 | 13,415 | (2,917 | ) | 26,679 | (4,665 | ) | |||||||||||||
Net (losses) gains on other derivatives (2) | (71 | ) | (34 | ) | 673 | (846 | ) | 748 | ||||||||||||
Total gains on derivative instruments, net | $ | 33,365 | $ | 26,538 | $ | 14,382 | $ | 96,845 | $ | 42,184 |
(1) | Represents the change in fair value of foreign exchange forward contracts used to economically reduce our foreign exchange exposure related to certain foreign currency denominated instruments. The change in fair value of our foreign exchange forward contracts is offset by the revaluation of foreign currency denominated instruments that are included in the line item "Other" within noninterest income. |
(2) | Primarily represents the change in fair value of loan conversion options and our interest rate swap. |
◦ | Net gains of $33.4 million on derivative instruments for the fourth quarter of 2014 were primarily attributable to the following: |
◦ | Net gains of $19.4 million from changes in warrant valuations compared to net gains of $6.4 million for the third quarter of 2014. The warrant valuation gains were primarily from our private company warrant portfolio, of which $9.2 million was attributable to three companies. At December 31, 2014, we held warrants in 1,478 companies with a total value of $117 million. Of the 1,478 companies, 25 companies made up approximately 35% of the fair value of the portfolio at December 31, 2014. The gains from our equity warrants that are from changes in warrant valuations are currently unrealized, and the extent such gains (or losses) will become realized is subject to a variety of factors, including among other things, performance of the underlying portfolio companies, investor demand for IPOs, fluctuations in the underlying valuation of these companies, levels of M&A activity, and legal and contractual restrictions on our ability to sell the underlying securities. |
◦ | Net gains of $1.1 million from the exercise of equity warrant assets, compared to net gains of $6.8 million for the third quarter of 2014, comprised of various exercises in our private company warrant portfolio. |
• | Net gains of $9.6 million on internal foreign exchange forward contracts used to economically reduce our foreign exchange exposure to foreign currency denominated instruments for the fourth quarter of 2014, compared to net gains of $12.5 million for the third quarter of 2014. The net gains of $9.6 million were offset by net losses of $9.3 million from the revaluation of foreign currency denominated instruments that are included in the line item "Other" within noninterest income. |
• | Net gains of $3.7 million on client foreign exchange forward contracts, compared to net gains of $0.9 million for the third quarter of 2014. The $2.8 million increase in net gains were primarily reflective of the appreciation of the U.S. dollar and increased trade volumes. The net gains of $3.7 million were offset by net losses of $3.0 million from the revaluation of foreign currency denominated cash that are included in the line item "Other" within noninterest income. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||
Non-GAAP core fee income: | ||||||||||||||||||||
Foreign exchange fees | $ | 18,624 | $ | 17,911 | $ | 15,882 | $ | 71,659 | $ | 57,411 | ||||||||||
Credit card fees | 10,352 | 10,909 | 9,216 | 41,792 | 32,461 | |||||||||||||||
Deposit service charges | 10,593 | 10,126 | 9,346 | 39,937 | 35,948 | |||||||||||||||
Lending related fees (1) | 7,503 | 6,029 | 7,145 | 25,711 | 20,980 | |||||||||||||||
Letters of credit and standby letters of credit fees | 4,142 | 4,557 | 3,837 | 15,649 | 14,716 | |||||||||||||||
Client investment fees | 4,132 | 3,814 | 3,567 | 14,883 | 13,959 | |||||||||||||||
Total Non-GAAP core fee income | $ | 55,346 | $ | 53,346 | $ | 48,993 | $ | 209,631 | $ | 175,475 |
(1) | Lending related fees consists of fee income associated with credit commitments such as unused commitment fees, syndication fees and other loan processing fees and, historically, has been included in Other noninterest income. Prior period amounts have been reclassified to conform with current period presentation. |
◦ | An increase of $1.5 million in lending related fees came from an increase in unused commitment fees of $1.7 million, partially offset by lower loan syndication fee income of $0.4 million. |
◦ | An increase of $0.7 million in foreign exchange fees as a result of continued strong growth in transaction volumes as well as number of trades in the fourth quarter of 2014. |
◦ | A decrease of $0.6 million in credit card fees reflective of higher expenses related to our card rewards program, partially offset by an increase in credit card interchange fee income of $1.2 million, as a result of increased volume. |
• | Approximately $12.9 million attributable to cumulative foreign currency translation adjustment losses, and |
• | $1.0 million in accrued transaction-related expenses. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands, except employees) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||
Compensation and benefits: | ||||||||||||||||||||
Salaries and wages | $ | 50,147 | $ | 47,106 | $ | 40,997 | $ | 186,763 | $ | 159,455 | ||||||||||
Incentive compensation plan | 25,917 | 24,621 | 27,745 | 100,874 | 96,065 | |||||||||||||||
ESOP | 1,292 | 1,540 | 1,297 | 6,690 | 7,429 | |||||||||||||||
Other employee benefits (1) | 29,871 | 26,665 | 26,447 | 115,159 | 103,852 | |||||||||||||||
Total compensation and benefits | $ | 107,227 | $ | 99,932 | $ | 96,486 | $ | 409,486 | $ | 366,801 | ||||||||||
Period-end full-time equivalent employees | 1,914 | 1,881 | 1,704 | 1,914 | 1,704 | |||||||||||||||
Average full-time equivalent employees | 1,907 | 1,850 | 1,690 | 1,815 | 1,669 |
(1) | Other employee benefits expense 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 $3.2 million in other employee benefits primarily due to larger expenses within our group health and life insurance plans. |
• | An increase of $3.0 million in salaries and wages primarily due to an increase in the number of average full-time equivalent employees ("FTE") by 57 to 1,907 FTEs for the fourth quarter of 2014, as well as from the full-quarter effect of the increase in FTE and market adjustments, which took effect during the third quarter. |
• | An increase of $1.3 million in expense relating to incentive compensation plans, attributable to stronger than expected loan growth during the fourth quarter of 2014. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||
Net interest income (1) | $ | (21 | ) | $ | (9 | ) | $ | (13 | ) | $ | (33 | ) | $ | (76 | ) | |||||
Noninterest income (1) | (81,299 | ) | (1,185 | ) | (148,334 | ) | (240,661 | ) | (372,246 | ) | ||||||||||
Noninterest expense (1) | 5,536 | 4,743 | 3,697 | 18,867 | 12,714 | |||||||||||||||
Carried interest income (loss) (2) | 3,979 | (3,726 | ) | 10,501 | 7,037 | 29,342 | ||||||||||||||
Net income attributable to noncontrolling interests | $ | (71,805 | ) | $ | (177 | ) | $ | (134,149 | ) | $ | (214,790 | ) | $ | (330,266 | ) |
(1) | Represents noncontrolling interests’ share in net interest income, noninterest income and noninterest expense. |
(2) | Represents the preferred allocation of income (or change in income) earned by us as the general partner of certain consolidated funds. |
• | Net gains on investment securities (including carried interest) attributable to noncontrolling interests of $78.2 million primarily from gains of $64.4 million from our managed funds of funds and gains of $13.8 million from our managed direct venture funds primarily related to valuation increases, and |
• | Noninterest expense of $5.5 million, primarily related to management fees paid by the noncontrolling interests to our subsidiaries that serve as the general partner. |
Current full year 2015 outlook compared to 2014 results (as of January 22, 2015) | |
Average loan balances | Increase at a percentage rate in the mid-twenties |
Average deposit balances | Increase at a percentage rate in the low thirties |
Net interest income (1) | Increase at a percentage rate in the high teens |
Net interest margin (1) | Between 2.40% and 2.60% |
Allowance for loan losses for total gross performing loans as a percentage of total gross performing loans | Comparable to 2014 levels |
Net loan charge-offs | Between 0.30% and 0.50% of average total gross loans |
Nonperforming loans as a percentage of total gross loans | Comparable to 2014 levels |
Core fee income (foreign exchange fees, deposit service charges, credit card fees, lending related fees, client investment fees and letters of credit fees) (2) | Increase at a percentage rate in the mid-teens |
Noninterest expense (excluding expenses related to noncontrolling interests) (2) (3) | Increase at a percentage rate in the mid-single digits |
(1) | Our outlook for net interest income and net interest margin is primarily based on management's current forecast of average deposit and loan balances and deployment of surplus cash into investment securities. Such forecasts are subject to change, and actual results may differ, based on market conditions, actual prepayment rates and other factors described under the section "Forward-Looking Statements" below. |
(2) | These are non-GAAP measures. See "Use of Non-GAAP Financial Measures" at the end of this release for further information regarding the calculation and limitations of these measures. |
(3) | Our outlook for noninterest expense is partly based on management's current forecast of performance-based incentive compensation expenses. Such forecasts are subject to change, and actual results may differ, based on our performance relative to our internal performance targets. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands, except share data) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 161,801 | $ | 153,292 | $ | 146,988 | $ | 610,945 | $ | 542,204 | ||||||||||
Investment securities: | ||||||||||||||||||||
Taxable | 79,987 | 73,540 | 46,149 | 271,371 | 180,162 | |||||||||||||||
Non-taxable | 774 | 772 | 798 | 3,136 | 3,201 | |||||||||||||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | 1,163 | 1,722 | 1,449 | 6,464 | 4,054 | |||||||||||||||
Total interest income | 243,725 | 229,326 | 195,384 | 891,916 | 729,621 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 3,181 | 2,961 | 2,595 | 12,114 | 9,128 | |||||||||||||||
Borrowings | 5,807 | 5,800 | 5,791 | 23,207 | 23,149 | |||||||||||||||
Total interest expense | 8,988 | 8,761 | 8,386 | 35,321 | 32,277 | |||||||||||||||
Net interest income | 234,737 | 220,565 | 186,998 | 856,595 | 697,344 | |||||||||||||||
Provision for loan losses | 40,435 | 16,610 | 28,670 | 59,486 | 63,693 | |||||||||||||||
Net interest income after provision for loan losses | 194,302 | 203,955 | 158,328 | 797,109 | 633,651 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Gains on investment securities, net | 94,787 | 5,644 | 163,547 | 267,023 | 419,408 | |||||||||||||||
Gains on derivative instruments, net | 33,365 | 26,538 | 14,382 | 96,845 | 42,184 | |||||||||||||||
Foreign exchange fees | 18,624 | 17,911 | 15,882 | 71,659 | 57,411 | |||||||||||||||
Credit card fees | 10,352 | 10,909 | 9,216 | 41,792 | 32,461 | |||||||||||||||
Deposit service charges | 10,593 | 10,126 | 9,346 | 39,937 | 35,948 | |||||||||||||||
Lending related fees | 7,503 | 6,029 | 7,145 | 25,711 | 20,980 | |||||||||||||||
Letters of credit and standby letters of credit fees | 4,142 | 4,557 | 3,837 | 15,649 | 14,716 | |||||||||||||||
Client investment fees | 4,132 | 3,814 | 3,567 | 14,883 | 13,959 | |||||||||||||||
Other | (15,861 | ) | (5,361 | ) | 11,791 | (1,260 | ) | 36,139 | ||||||||||||
Total noninterest income | 167,637 | 80,167 | 238,713 | 572,239 | 673,206 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Compensation and benefits | 107,227 | 99,932 | 96,486 | 409,486 | 366,801 | |||||||||||||||
Professional services | 25,994 | 26,081 | 23,419 | 94,377 | 76,178 | |||||||||||||||
Premises and equipment | 13,449 | 12,631 | 11,637 | 49,716 | 45,935 | |||||||||||||||
Business development and travel | 10,592 | 10,022 | 9,901 | 40,057 | 33,334 | |||||||||||||||
Net occupancy | 7,568 | 7,437 | 7,477 | 30,004 | 24,937 | |||||||||||||||
FDIC assessments | 5,546 | 4,587 | 3,636 | 19,206 | 12,784 | |||||||||||||||
Correspondent bank fees | 3,363 | 3,278 | 3,132 | 13,118 | 12,142 | |||||||||||||||
Provision for unfunded credit commitments | 978 | 2,225 | 1,507 | 6,511 | 7,642 | |||||||||||||||
Other | 14,283 | 15,796 | 11,655 | 54,396 | 41,927 | |||||||||||||||
Total noninterest expense | 189,000 | 181,989 | 168,850 | 716,871 | 621,680 | |||||||||||||||
Income before income tax expense | 172,939 | 102,133 | 228,191 | 652,477 | 685,177 | |||||||||||||||
Income tax expense | 42,302 | 38,961 | 35,285 | 173,762 | 139,058 | |||||||||||||||
Net income before noncontrolling interests | 130,637 | 63,172 | 192,906 | 478,715 | 546,119 | |||||||||||||||
Net income attributable to noncontrolling interests | (71,805 | ) | (177 | ) | (134,149 | ) | (214,790 | ) | (330,266 | ) | ||||||||||
Net income available to common stockholders | $ | 58,832 | $ | 62,995 | $ | 58,757 | $ | 263,925 | $ | 215,853 | ||||||||||
Earnings per common share—basic | $ | 1.16 | $ | 1.24 | $ | 1.29 | $ | 5.39 | $ | 4.76 | ||||||||||
Earnings per common share—diluted | 1.14 | 1.22 | 1.27 | 5.31 | 4.70 | |||||||||||||||
Weighted average common shares outstanding—basic | 50,859,313 | 50,751,633 | 45,701,224 | 48,930,625 | 45,308,606 | |||||||||||||||
Weighted average common shares outstanding—diluted | 51,528,150 | 51,570,771 | 46,431,259 | 49,661,547 | 45,943,686 |
(Dollars in thousands, except par value and share data) | December 31, 2014 | September 30, 2014 | December 31, 2013 | |||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 1,796,062 | $ | 1,872,537 | $ | 1,538,779 | ||||||
Available-for-sale securities, at fair value (cost $13,497,945, $13,322,059 and $12,055,524, respectively) | 13,540,655 | 13,333,436 | 11,986,821 | |||||||||
Held-to-maturity securities, at cost (fair value $7,415,656, $6,613,893 and $0, respectively) | 7,421,042 | 6,662,025 | — | |||||||||
Non-marketable and other securities | 1,728,888 | 1,703,550 | 1,595,494 | |||||||||
Investment securities | 22,690,585 | 21,699,011 | 13,582,315 | |||||||||
Loans, net of unearned income | 14,384,276 | 12,017,181 | 10,906,386 | |||||||||
Allowance for loan losses | (165,359 | ) | (129,061 | ) | (142,886 | ) | ||||||
Net loans | 14,218,917 | 11,888,120 | 10,763,500 | |||||||||
Premises and equipment, net of accumulated depreciation and amortization | 79,845 | 74,375 | 67,485 | |||||||||
Accrued interest receivable and other assets | 559,231 | 506,964 | 465,110 | |||||||||
Total assets | $ | 39,344,640 | $ | 36,041,007 | $ | 26,417,189 | ||||||
Liabilities and total equity: | ||||||||||||
Liabilities: | ||||||||||||
Noninterest-bearing demand deposits | $ | 24,583,682 | $ | 22,461,068 | $ | 15,894,360 | ||||||
Interest-bearing deposits | 9,759,817 | 8,662,067 | 6,578,619 | |||||||||
Total deposits | 34,343,499 | 31,123,135 | 22,472,979 | |||||||||
Short-term borrowings | 7,781 | 6,630 | 5,080 | |||||||||
Other liabilities | 483,493 | 517,462 | 404,586 | |||||||||
Long-term debt | 453,443 | 453,764 | 455,216 | |||||||||
Total liabilities | 35,288,216 | 32,100,991 | 23,337,861 | |||||||||
SVBFG stockholders’ equity: | ||||||||||||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; no shares issued and outstanding | — | — | — | |||||||||
Common stock, $0.001 par value, 150,000,000 shares authorized; 50,924,925 shares, 50,820,946 shares and 45,800,418 shares outstanding, respectively | 51 | 51 | 46 | |||||||||
Additional paid-in capital | 1,120,350 | 1,107,337 | 624,256 | |||||||||
Retained earnings | 1,654,657 | 1,595,825 | 1,390,732 | |||||||||
Accumulated other comprehensive income (loss) | 42,704 | 18,744 | (48,764 | ) | ||||||||
Total SVBFG stockholders’ equity | 2,817,762 | 2,721,957 | 1,966,270 | |||||||||
Noncontrolling interests | 1,238,662 | 1,218,059 | 1,113,058 | |||||||||
Total equity | 4,056,424 | 3,940,016 | 3,079,328 | |||||||||
Total liabilities and total equity | $ | 39,344,640 | $ | 36,041,007 | $ | 26,417,189 |
Three months ended | |||||||||||||||||||||||||||||||||
December 31, 2014 | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(Dollars in thousands, except yield/rate and ratios) | Average balance | Interest income/ expense | Yield/ rate | Average balance | Interest income/ expense | Yield/ rate | Average balance | Interest income/ expense | Yield/ rate | ||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Federal reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1) | $ | 1,704,001 | $ | 1,163 | 0.27 | % | $ | 2,472,205 | $ | 1,722 | 0.28 | % | $ | 2,110,066 | $ | 1,449 | 0.27 | % | |||||||||||||||
Investment securities: (2) | |||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||
Taxable | 13,526,549 | 43,844 | 1.29 | 12,446,821 | 43,519 | 1.39 | 10,922,312 | 46,149 | 1.68 | ||||||||||||||||||||||||
Non-taxable (3) | — | — | — | — | — | — | 82,034 | 1,228 | 5.94 | ||||||||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||||||
Taxable | 7,031,209 | 36,143 | 2.04 | 5,691,201 | 30,021 | 2.09 | — | — | — | ||||||||||||||||||||||||
Non-taxable (3) | 84,123 | 1,191 | 5.62 | 84,401 | 1,188 | 5.58 | — | — | — | ||||||||||||||||||||||||
Total loans, net of unearned income (4) (5) | 12,703,380 | 161,801 | 5.05 | 11,439,521 | 153,292 | 5.32 | 10,138,328 | 146,988 | 5.75 | ||||||||||||||||||||||||
Total interest-earning assets | 35,049,262 | 244,142 | 2.76 | 32,134,149 | 229,742 | 2.84 | 23,252,740 | 195,814 | 3.34 | ||||||||||||||||||||||||
Cash and due from banks | 305,259 | 299,964 | 265,045 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (138,133 | ) | (128,598 | ) | (131,386 | ) | |||||||||||||||||||||||||||
Other assets (6) | 2,373,798 | 2,292,770 | 1,945,008 | ||||||||||||||||||||||||||||||
Total assets | $ | 37,590,186 | $ | 34,598,285 | $ | 25,331,407 | |||||||||||||||||||||||||||
Funding sources: | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
NOW deposits | $ | 208,805 | $ | 231 | 0.44 | % | $ | 161,793 | $ | 279 | 0.68 | % | $ | 131,686 | $ | 121 | 0.36 | % | |||||||||||||||
Money market deposits | 6,102,591 | 2,615 | 0.17 | 5,649,971 | 2,332 | 0.16 | 4,104,509 | 2,081 | 0.20 | ||||||||||||||||||||||||
Money market deposits in foreign offices | 276,056 | 27 | 0.04 | 228,142 | 26 | 0.05 | 193,940 | 48 | 0.10 | ||||||||||||||||||||||||
Time deposits | 138,075 | 82 | 0.24 | 162,182 | 96 | 0.23 | 155,658 | 135 | 0.34 | ||||||||||||||||||||||||
Sweep deposits in foreign offices | 2,163,450 | 226 | 0.04 | 2,021,727 | 228 | 0.04 | 1,661,669 | 210 | 0.05 | ||||||||||||||||||||||||
Total interest-bearing deposits | 8,888,977 | 3,181 | 0.14 | 8,223,815 | 2,961 | 0.14 | 6,247,462 | 2,595 | 0.16 | ||||||||||||||||||||||||
Short-term borrowings | 9,934 | 3 | 0.12 | 5,538 | — | — | 3,806 | 5 | 0.52 | ||||||||||||||||||||||||
5.375% Senior Notes | 348,398 | 4,833 | 5.50 | 348,341 | 4,832 | 5.50 | 348,174 | 4,826 | 5.50 | ||||||||||||||||||||||||
Junior Subordinated Debentures | 54,874 | 831 | 6.01 | 54,918 | 834 | 6.02 | 55,049 | 836 | 6.03 | ||||||||||||||||||||||||
6.05% Subordinated Notes | 50,528 | 140 | 1.10 | 50,937 | 134 | 1.04 | 52,528 | 124 | 0.94 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 9,352,711 | 8,988 | 0.38 | 8,683,549 | 8,761 | 0.40 | 6,707,019 | 8,386 | 0.50 | ||||||||||||||||||||||||
Portion of noninterest-bearing funding sources | 25,696,551 | 23,450,600 | 16,545,721 | ||||||||||||||||||||||||||||||
Total funding sources | 35,049,262 | 8,988 | 0.10 | 32,134,149 | 8,761 | 0.11 | 23,252,740 | 8,386 | 0.14 | ||||||||||||||||||||||||
Noninterest-bearing funding sources: | |||||||||||||||||||||||||||||||||
Demand deposits | 23,701,071 | 21,502,469 | 15,240,694 | ||||||||||||||||||||||||||||||
Other liabilities | 477,481 | 402,231 | 376,801 | ||||||||||||||||||||||||||||||
SVBFG stockholders’ equity | 2,827,512 | 2,729,862 | 2,010,440 | ||||||||||||||||||||||||||||||
Noncontrolling interests | 1,231,411 | 1,280,174 | 996,453 | ||||||||||||||||||||||||||||||
Portion used to fund interest-earning assets | (25,696,551 | ) | (23,450,600 | ) | (16,545,721 | ) | |||||||||||||||||||||||||||
Total liabilities and total equity | $ | 37,590,186 | $ | 34,598,285 | $ | 25,331,407 | |||||||||||||||||||||||||||
Net interest income and margin | $ | 235,154 | 2.66 | % | $ | 220,981 | 2.73 | % | $ | 187,428 | 3.20 | % | |||||||||||||||||||||
Total deposits | $ | 32,590,048 | $ | 29,726,284 | $ | 21,488,156 | |||||||||||||||||||||||||||
Average SVBFG stockholders’ equity as a percentage of average assets | 7.52 | % | 7.89 | % | 7.94 | % | |||||||||||||||||||||||||||
Reconciliation to reported net interest income: | |||||||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | (417 | ) | (416 | ) | (430 | ) | |||||||||||||||||||||||||||
Net interest income, as reported | $ | 234,737 | $ | 220,565 | $ | 186,998 |
(1) | Includes average interest-earning deposits in other financial institutions of $387 million, $408 million and $238 million; and $1.2 billion, $2.0 billion and $1.7 billion deposited at the Federal Reserve Bank, earning interest at the Fed Funds target rate, for the quarters ended December 31, 2014, September 30, 2014 and December 31, 2013, respectively. |
(2) | Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income. |
(3) | Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory 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 $25.6 million, $26.0 million and $24.2 million for the quarters ended December 31, 2014, September 30, 2014 and December 31, 2013, respectively. |
(6) | Average investment securities of $1.8 billion, $1.8 billion and $1.2 billion for the quarters ended December 31, 2014, September 30, 2014 and December 31, 2013, respectively, were classified as other assets as they are noninterest-earning assets. These investments primarily consisted of non-marketable and other securities. |
Year ended | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
(Dollars in thousands, except yield/rate and ratios) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1) | $ | 2,465,036 | $ | 6,464 | 0.26 | % | $ | 1,309,770 | $ | 4,054 | 0.31 | % | ||||||||||
Investment securities: (2) | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||
Taxable | 12,873,327 | 195,698 | 1.52 | 10,516,177 | 180,162 | 1.71 | ||||||||||||||||
Non-taxable (3) | 33,808 | 2,040 | 6.03 | 82,702 | 4,925 | 5.96 | ||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||
Taxable | 3,646,836 | 75,673 | 2.08 | — | — | — | ||||||||||||||||
Non-taxable (3) | 49,581 | 2,785 | 5.62 | — | — | — | ||||||||||||||||
Total loans, net of unearned income (4) (5) | 11,502,941 | 610,945 | 5.31 | 9,351,378 | 542,204 | 5.80 | ||||||||||||||||
Total interest-earning assets | 30,571,529 | 893,605 | 2.92 | 21,260,027 | 731,345 | 3.44 | ||||||||||||||||
Cash and due from banks | 232,890 | 274,272 | ||||||||||||||||||||
Allowance for loan losses | (134,044 | ) | (122,489 | ) | ||||||||||||||||||
Other assets (6) | 2,293,820 | 1,798,937 | ||||||||||||||||||||
Total assets | $ | 32,964,195 | $ | 23,210,747 | ||||||||||||||||||
Funding sources: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
NOW deposits | $ | 170,299 | $ | 801 | 0.47 | % | $ | 135,585 | $ | 479 | 0.35 | % | ||||||||||
Money market deposits | 5,423,350 | 9,920 | 0.18 | 3,534,466 | 6,994 | 0.20 | ||||||||||||||||
Money market deposits in foreign offices | 224,675 | 137 | 0.06 | 159,700 | 156 | 0.10 | ||||||||||||||||
Time deposits | 154,698 | 370 | 0.24 | 168,209 | 634 | 0.38 | ||||||||||||||||
Sweep deposits in foreign offices | 1,936,916 | 886 | 0.05 | 1,729,228 | 865 | 0.05 | ||||||||||||||||
Total interest-bearing deposits | 7,909,938 | 12,114 | 0.15 | 5,727,188 | 9,128 | 0.16 | ||||||||||||||||
Short-term borrowings | 6,264 | 3 | 0.05 | 27,018 | 79 | 0.29 | ||||||||||||||||
5.375% Senior Notes | 348,313 | 19,323 | 5.55 | 348,094 | 19,259 | 5.53 | ||||||||||||||||
Junior Subordinated Debentures | 54,940 | 3,352 | 6.10 | 55,115 | 3,333 | 6.05 | ||||||||||||||||
6.05% Subordinated Notes | 51,221 | 529 | 1.03 | 53,275 | 478 | 0.90 | ||||||||||||||||
Total interest-bearing liabilities | 8,370,676 | 35,321 | 0.42 | 6,210,690 | 32,277 | 0.52 | ||||||||||||||||
Portion of noninterest-bearing funding sources | 22,200,853 | 15,049,337 | ||||||||||||||||||||
Total funding sources | 30,571,529 | 35,321 | 0.11 | 21,260,027 | 32,277 | 0.15 | ||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||
Demand deposits | 20,410,887 | 13,892,006 | ||||||||||||||||||||
Other liabilities | 419,043 | 331,343 | ||||||||||||||||||||
SVBFG stockholders’ equity | 2,523,235 | 1,927,674 | ||||||||||||||||||||
Noncontrolling interests | 1,240,354 | 849,034 | ||||||||||||||||||||
Portion used to fund interest-earning assets | (22,200,853 | ) | (15,049,337 | ) | ||||||||||||||||||
Total liabilities and total equity | $ | 32,964,195 | $ | 23,210,747 | ||||||||||||||||||
Net interest income and margin | $ | 858,284 | 2.81 | % | $ | 699,068 | 3.29 | % | ||||||||||||||
Total deposits | $ | 28,320,825 | $ | 19,619,194 | ||||||||||||||||||
Average SVBFG stockholders’ equity as a percentage of average assets | 7.65 | % | 8.31 | % | ||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||
Adjustments for taxable equivalent basis | (1,689 | ) | (1,724 | ) | ||||||||||||||||||
Net interest income, as reported | $ | 856,595 | $ | 697,344 |
(1) | Includes average interest-earning deposits in other financial institutions of $364 million and $191 million for the year ended December 31, 2014 and 2013, respectively. For the year ended December 31, 2014 and 2013, balance also includes $1.9 billion and $1.0 billion, respectively, deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate. |
(2) | Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income. |
(3) | Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 35.0 percent for all periods presented. |
(4) | Nonaccrual loans are reflected in the average balances of loans. |
(5) | Interest income includes loan fees of $97.3 million and $84.3 million for the year ended December 31, 2014 and 2013, respectively. |
(6) | Average investment securities of $1.8 billion and $1.3 billion for the year ended December 31, 2014 and 2013, respectively, were classified as other assets as they are noninterest-earning assets. These investments primarily consisted of non-marketable and other securities. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||
Equity warrant assets (1): | ||||||||||||||||||||
Gains on exercises, net | $ | 1,059 | $ | 6,788 | $ | 1,833 | $ | 29,802 | $ | 8,716 | ||||||||||
Cancellations and expirations | (279 | ) | (61 | ) | (79 | ) | (856 | ) | (450 | ) | ||||||||||
Changes in fair value | 19,373 | 6,430 | 14,872 | 42,066 | 37,835 | |||||||||||||||
Total net gains on equity warrant assets (2) | $ | 20,153 | $ | 13,157 | $ | 16,626 | $ | 71,012 | $ | 46,101 |
(1) | At December 31, 2014, we held warrants in 1,478 companies, compared to 1,415 companies at September 30, 2014 and 1,320 companies at December 31, 2013. The total value of our warrant portfolio was $117 million at December 31, 2014 compared to $95 million at September 30, 2014, and $103 million at December 31, 2013. Of the 1,478 companies, 25 companies made up approximately 35% of the fair value of the portfolio at December 31, 2014. |
(2) | Net gains on equity warrant assets are included in the line item “Gains on derivative instruments, net” as part of noninterest income. |
Three months ended | Year ended | ||||||||||||||
(Shares in thousands) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | ||||||||||
Weighted average common shares outstanding—basic | 50,859 | 50,752 | 45,701 | 48,931 | 45,309 | ||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options and employee stock purchase plan | 427 | 534 | 476 | 485 | 431 | ||||||||||
Restricted stock units | 242 | 285 | 254 | 246 | 204 | ||||||||||
Total effect of dilutive securities | 669 | 819 | 730 | 731 | 635 | ||||||||||
Weighted average common shares outstanding—diluted | 51,528 | 51,571 | 46,431 | 49,662 | 45,944 |
December 31, 2014 | September 30, 2014 | December 31, 2013 | |||||||
SVB Financial Group: | |||||||||
Total risk-based capital ratio | 13.87 | % | 14.97 | % | 13.13 | % | |||
Tier 1 risk-based capital ratio | 12.86 | 14.03 | 11.94 | ||||||
Tier 1 leverage ratio | 7.74 | 8.22 | 8.31 | ||||||
Tangible common equity to tangible assets ratio (1) | 7.16 | 7.55 | 7.44 | ||||||
Tangible common equity to risk-weighted assets ratio (1) | 12.90 | 13.97 | 11.63 | ||||||
Silicon Valley Bank: | |||||||||
Total risk-based capital ratio | 12.09 | % | 13.06 | % | 11.32 | % | |||
Tier 1 risk-based capital ratio | 11.06 | 12.11 | 10.11 | ||||||
Tier 1 leverage ratio | 6.65 | 7.05 | 7.04 | ||||||
Tangible common equity to tangible assets ratio (1) | 6.39 | 6.76 | 6.59 | ||||||
Tangible common equity to risk-weighted assets ratio (1) | 11.15 | 12.14 | 9.87 |
(1) | These are non-GAAP measures. A reconciliation of non-GAAP measures to GAAP is provided at the end of this release under the section “Use of Non-GAAP Financial Measures.” |
(Dollars in thousands, except ratios and client data) | December 31, 2014 | September 30, 2014 | December 31, 2013 | |||||||||
Loans (individually or in the aggregate) to any single client, equal to or greater than $20 million | ||||||||||||
Commercial loans: | ||||||||||||
Software | $ | 1,937,542 | $ | 1,600,284 | $ | 1,557,304 | ||||||
Hardware | 469,807 | 403,383 | 550,841 | |||||||||
Venture capital/private equity | 3,071,069 | 1,692,560 | 1,459,586 | |||||||||
Life science | 437,310 | 429,207 | 336,106 | |||||||||
Premium wine (1) | 28,098 | 28,425 | 24,347 | |||||||||
Other | 54,930 | 35,000 | 111,581 | |||||||||
Total commercial loans | 5,998,756 | 4,188,859 | 4,039,765 | |||||||||
Real estate secured loans: | ||||||||||||
Premium wine (1) | 80,782 | 81,464 | 104,464 | |||||||||
Consumer (2) | — | — | 20,000 | |||||||||
Other | 22,733 | 22,933 | 23,533 | |||||||||
Total real estate secured loans | 103,515 | 104,397 | 147,997 | |||||||||
Consumer loans (2) | 56,000 | 30,000 | 33,002 | |||||||||
Total loans individually equal to or greater than $20 million | $ | 6,158,271 | $ | 4,323,256 | $ | 4,220,764 | ||||||
Loans (individually or in the aggregate) to any single client, less than $20 million | ||||||||||||
Commercial loans: | ||||||||||||
Software | $ | 3,058,704 | $ | 2,945,040 | $ | 2,584,054 | ||||||
Hardware | 670,687 | 678,707 | 673,639 | |||||||||
Venture capital/private equity | 1,550,230 | 1,255,775 | 948,840 | |||||||||
Life science | 863,417 | 827,923 | 845,160 | |||||||||
Premium wine | 161,044 | 159,990 | 126,908 | |||||||||
Other | 181,589 | 209,067 | 180,049 | |||||||||
Total commercial loans | 6,485,671 | 6,076,502 | 5,358,650 | |||||||||
Real estate secured loans: | ||||||||||||
Premium wine | 526,725 | 482,191 | 411,478 | |||||||||
Consumer | 1,117,661 | 1,047,487 | 853,070 | |||||||||
Other | 17,250 | 7,500 | 7,500 | |||||||||
Total real estate secured loans | 1,661,636 | 1,537,178 | 1,272,048 | |||||||||
Construction loans | 78,851 | 80,273 | 77,165 | |||||||||
Consumer loans | 104,337 | 95,265 | 66,641 | |||||||||
Total loans individually less than $20 million | $ | 8,330,495 | $ | 7,789,218 | $ | 6,774,504 | ||||||
Total gross loans | $ | 14,488,766 | $ | 12,112,474 | $ | 10,995,268 | ||||||
Loans individually equal to or greater than $20 million as a percentage of total gross loans | 42.5 | % | 35.7 | % | 38.4 | % | ||||||
Total clients with loans individually equal to or greater than $20 million | 170 | 127 | 122 | |||||||||
Loans individually equal to or greater than $20 million on nonaccrual status | $ | 27,525 | $ | — | $ | — |
(1) | Premium wine clients can have loan balances included in both commercial loans and real estate secured loans, the combination of which are equal to or greater than $20 million. |
(2) | Consumer loan clients can have loan balances included in both real estate secured loans and other consumer loans, the combination of which are equal to or greater than $20 million. |
(Dollars in thousands, except ratios) | December 31, 2014 | September 30, 2014 | December 31, 2013 | |||||||||
Gross nonperforming, past due, and restructured loans: | ||||||||||||
Impaired loans | $ | 38,137 | $ | 11,687 | $ | 51,649 | ||||||
Loans past due 90 days or more still accruing interest | 1,302 | 125 | 99 | |||||||||
Total nonperforming loans | $ | 39,439 | $ | 11,812 | $ | 51,748 | ||||||
OREO and other foreclosed assets | 561 | 561 | — | |||||||||
Total nonperforming assets | $ | 40,000 | $ | 12,373 | $ | 51,748 | ||||||
Nonperforming loans as a percentage of total gross loans | 0.27 | % | 0.10 | % | 0.47 | % | ||||||
Nonperforming assets as a percentage of total assets | 0.10 | 0.03 | 0.20 | |||||||||
Allowance for loan losses | $ | 165,359 | $ | 129,061 | $ | 142,886 | ||||||
As a percentage of total gross loans | 1.14 | % | 1.07 | % | 1.30 | % | ||||||
As a percentage of total gross nonperforming loans | 419.28 | NM | 276.12 | |||||||||
Allowance for loan losses for impaired loans | $ | 15,051 | $ | 2,325 | $ | 21,277 | ||||||
As a percentage of total gross loans | 0.10 | % | 0.02 | % | 0.19 | % | ||||||
As a percentage of total gross nonperforming loans | 38.16 | 19.68 | 41.12 | |||||||||
Allowance for loan losses for total gross performing loans | $ | 150,308 | $ | 126,736 | $ | 121,609 | ||||||
As a percentage of total gross loans | 1.04 | % | 1.05 | % | 1.11 | % | ||||||
As a percentage of total gross performing loans | 1.04 | 1.05 | 1.11 | |||||||||
Total gross loans | $ | 14,488,766 | $ | 12,112,474 | $ | 10,995,268 | ||||||
Total gross performing loans | 14,449,327 | 12,100,662 | 10,943,520 | |||||||||
Reserve for unfunded credit commitments (1) | 36,419 | 35,489 | 29,983 | |||||||||
As a percentage of total unfunded credit commitments | 0.25 | % | 0.24 | % | 0.26 | % | ||||||
Total unfunded credit commitments (2) | $ | 14,705,785 | $ | 14,631,637 | $ | 11,470,722 |
(1) | The “reserve for unfunded credit commitments” is included as a component of “other liabilities.” |
(2) | Includes unfunded loan commitments and letters of credit. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in millions) | December 31, 2014 | September 30, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||
Client directed investment assets | $ | 6,828 | $ | 7,168 | $ | 7,672 | $ | 7,173 | $ | 7,207 | ||||||||||
Client investment assets under management (2) | 17,416 | 17,006 | 12,355 | 16,009 | 11,772 | |||||||||||||||
Sweep money market funds | 7,624 | 6,814 | 6,198 | 6,854 | 5,240 | |||||||||||||||
Total average client investment funds | $ | 31,868 | $ | 30,988 | $ | 26,225 | $ | 30,036 | $ | 24,219 |
Period-end balances at | ||||||||||||||||||||
(Dollars in millions) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
Client directed investment assets | $ | 6,158 | $ | 6,491 | $ | 6,979 | $ | 7,395 | $ | 7,073 | ||||||||||
Client investment assets under management (2) | 18,149 | 17,376 | 16,960 | 14,330 | 12,677 | |||||||||||||||
Sweep money market funds | 8,061 | 7,277 | 6,437 | 6,513 | 6,613 | |||||||||||||||
Total period-end client investment funds | $ | 32,368 | $ | 31,144 | $ | 30,376 | $ | 28,238 | $ | 26,363 |
(1) | Off-Balance sheet client investment funds are maintained at third party financial institutions. |
(2) | These funds represent investments in third party money market mutual funds and fixed-income securities managed by SVB Asset Management. |
• | Income and expense attributable to noncontrolling interests — As part of our funds management business, we recognize the entire income or loss from certain funds where we own less than 100 percent. We are required under GAAP to consolidate 100 percent of the results of the funds that we are deemed to control or in which we have a majority ownership. The relevant amounts attributable to investors other than us are reflected under “Net Income Attributable to Noncontrolling Interests.” Our net income available to common stockholders/certain financial line items include only the portion of income or loss related to our ownership interest. |
• | Pre-tax net losses of $13.9 million ($11.4 million, net of tax) from the pending sale of SVBIF at December 31, 2014. |
• | Tangible common equity to tangible assets ratio; tangible common equity to risk-weighted assets ratio — These ratios are not required by GAAP or applicable bank regulatory requirements, and are used by management to evaluate the adequacy of our capital levels. Risk-based capital guidelines require minimum level of capital as a percentage of risk-weighted assets. Risk-weighted assets are calculated by assigning assets and off-balance sheet items to broad risk categories. Our ratios are calculated by dividing total SVBFG stockholders’ equity, by total assets or total risk-weighted assets, as applicable, after reducing amounts by acquired intangibles, if any. |
• | Non-GAAP return on average assets ratio; Non-GAAP return on average SVBFG stockholders’ equity ratio — These ratios exclude certain financial items that are otherwise required under GAAP. Our ratios are calculated by dividing non-GAAP net income available to common stockholders (annualized) by average assets or average SVBFG stockholders’ equity, as applicable. |
• | Non-GAAP operating efficiency ratio — This ratio excludes certain financial items that are otherwise required under GAAP. It is calculated by dividing noninterest expense by total taxable equivalent income, after reducing both amounts by taxable equivalent income and expense attributable to noncontrolling interests and the gains noted above for applicable periods. |
• | Non-GAAP core fee income — This measure represents noninterest income, but excludes certain line items where performance is typically subject to market or other conditions beyond our control. We do not provide our outlook for the expected full year results for these excluded items, which include gains on investment securities, net, gains on derivative instruments, net, and other noninterest income items. |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP net income and earnings per share (Dollars in thousands, except share data) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Net income available to common stockholders | $ | 58,832 | $ | 62,995 | $ | 50,797 | $ | 91,301 | $ | 58,757 | $ | 263,925 | $ | 215,853 | ||||||||||||||
Less: net losses on SVBIF Sale Transaction (1) | 13,934 | — | — | — | — | 13,934 | — | |||||||||||||||||||||
Tax impact from net losses on SVBIF Sale Transaction | (5,398 | ) | — | — | — | — | (5,398 | ) | — | |||||||||||||||||||
Tax impact of undistributed earnings of SVBIF | 2,900 | — | — | — | — | 2,900 | — | |||||||||||||||||||||
Non-GAAP net income available to common stockholders | $ | 70,268 | $ | 62,995 | $ | 50,797 | $ | 91,301 | $ | 58,757 | $ | 275,361 | $ | 215,853 | ||||||||||||||
GAAP earnings per common share — diluted | $ | 1.14 | $ | 1.22 | $ | 1.04 | $ | 1.95 | $ | 1.27 | $ | 5.31 | $ | 4.70 | ||||||||||||||
Less: net losses on SVBIF Sale Transaction (1) | 0.28 | — | — | — | — | 0.28 | — | |||||||||||||||||||||
Tax impact from net losses on SVBIF Sale Transaction | (0.11 | ) | — | — | — | — | (0.11 | ) | — | |||||||||||||||||||
Tax impact of undistributed earnings of SVBIF | 0.06 | — | — | — | — | 0.06 | — | |||||||||||||||||||||
Non-GAAP earnings per common share — diluted | $ | 1.37 | $ | 1.22 | $ | 1.04 | $ | 1.95 | $ | 1.27 | $ | 5.54 | $ | 4.70 | ||||||||||||||
Weighted average diluted common shares outstanding | 51,528,150 | 51,570,771 | 49,044,949 | 46,724,812 | 46,431,259 | 49,661,547 | 45,943,686 |
(1) | Pre-tax net losses of $13.9 million on the pending sale of SVBIF are included in other noninterest income at December 31, 2014. |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP return on average assets (annualized) and average SVBFG stockholders' equity (annualized) (Dollars in thousands, except ratios) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Net income available to common stockholders | $ | 58,832 | $ | 62,995 | $ | 50,797 | $ | 91,301 | $ | 58,757 | $ | 263,925 | $ | 215,853 | ||||||||||||||
Non-GAAP net income available to common stockholders | $ | 70,268 | $ | 62,995 | $ | 50,797 | $ | 91,301 | $ | 58,757 | $ | 275,361 | $ | 215,853 | ||||||||||||||
Average Assets | $ | 37,590,186 | $ | 34,598,285 | $ | 31,745,630 | $ | 27,767,633 | $ | 25,331,407 | $ | 32,964,195 | $ | 23,210,747 | ||||||||||||||
Return on average assets (annualized) | 0.62 | % | 0.72 | % | 0.64 | % | 1.33 | % | 0.92 | % | 0.80 | % | 0.93 | % | ||||||||||||||
Non-GAAP return on average assets (annualized) | 0.74 | 0.72 | 0.64 | 1.33 | 0.92 | 0.84 | 0.93 | |||||||||||||||||||||
Average SVBFG stockholders' equity (annualized) | $ | 2,827,512 | $ | 2,729,862 | $ | 2,397,386 | $ | 2,099,819 | $ | 2,010,440 | $ | 2,523,235 | $ | 1,927,674 | ||||||||||||||
Return on average SVBFG stockholders' equity (annualized) | 8.25 | % | 9.16 | % | 8.50 | % | 17.63 | % | 11.60 | % | 10.46 | % | 11.20 | % | ||||||||||||||
Non-GAAP return on average SVBFG stockholders' equity (annualized) | 9.86 | 9.16 | 8.50 | 17.63 | 11.60 | 10.91 | 11.20 |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (Dollars in thousands) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
GAAP noninterest income | $ | 167,637 | $ | 80,167 | $ | 14,210 | $ | 310,225 | $ | 238,713 | $ | 572,239 | $ | 673,206 | ||||||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 77,320 | 4,911 | (35,325 | ) | 186,718 | 137,833 | 233,624 | 342,904 | ||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | $ | 90,317 | $ | 75,256 | $ | 49,535 | $ | 123,507 | $ | 100,880 | $ | 338,615 | $ | 330,302 | ||||||||||||||
Less: net losses on SVBIF Sale Transaction | 13,934 | — | — | — | — | 13,934 | — | |||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction | $ | 104,251 | $ | 75,256 | $ | 49,535 | $ | 123,507 | $ | 100,880 | $ | 352,549 | $ | 330,302 |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP core fee income (Dollars in thousands) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
GAAP noninterest income | $ | 167,637 | $ | 80,167 | $ | 14,210 | $ | 310,225 | $ | 238,713 | $ | 572,239 | $ | 673,206 | ||||||||||||||
Less: gains (losses) on investment securities, net | 94,787 | 5,644 | (57,320 | ) | 223,912 | 163,547 | 267,023 | 419,408 | ||||||||||||||||||||
Less: gains on derivative instruments, net | 33,365 | 26,538 | 12,775 | 24,167 | 14,382 | 96,845 | 42,184 | |||||||||||||||||||||
Less: other noninterest (loss) income | (15,861 | ) | (5,361 | ) | 8,762 | 11,200 | 11,791 | (1,260 | ) | 36,139 | ||||||||||||||||||
Non-GAAP core fee income | $ | 55,346 | $ | 53,346 | $ | 49,993 | $ | 50,946 | $ | 48,993 | $ | 209,631 | $ | 175,475 |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests (Dollars in thousands) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
GAAP net gains (losses) on investment securities | $ | 94,787 | $ | 5,644 | $ | (57,320 | ) | $ | 223,912 | $ | 163,547 | $ | 267,023 | $ | 419,408 | |||||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 78,225 | 6,757 | (35,240 | ) | 186,552 | 137,405 | 236,294 | 342,128 | ||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 16,562 | $ | (1,113 | ) | $ | (22,080 | ) | $ | 37,360 | $ | 26,142 | $ | 30,729 | $ | 77,280 |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP operating efficiency ratio, net of noncontrolling interests (Dollars in thousands, except ratios) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
GAAP noninterest expense | $ | 189,000 | $ | 181,989 | $ | 173,446 | $ | 172,436 | $ | 168,850 | $ | 716,871 | $ | 621,680 | ||||||||||||||
Less: expense attributable to noncontrolling interests | 5,536 | 4,743 | 5,267 | 3,321 | 3,697 | 18,867 | 12,714 | |||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests | $ | 183,464 | $ | 177,246 | $ | 168,179 | $ | 169,115 | $ | 165,153 | $ | 698,004 | $ | 608,966 | ||||||||||||||
GAAP net interest income | $ | 234,737 | $ | 220,565 | $ | 204,965 | $ | 196,328 | $ | 186,998 | $ | 856,595 | $ | 697,344 | ||||||||||||||
Adjustments for taxable equivalent basis | 417 | 416 | 427 | 429 | 430 | 1,689 | 1,724 | |||||||||||||||||||||
Non-GAAP taxable equivalent net interest income | $ | 235,154 | $ | 220,981 | $ | 205,392 | $ | 196,757 | $ | 187,428 | $ | 858,284 | $ | 699,068 | ||||||||||||||
Less: income (losses) attributable to noncontrolling interests | 21 | 9 | (5 | ) | 8 | 13 | 33 | 76 | ||||||||||||||||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests | $ | 235,133 | $ | 220,972 | $ | 205,397 | $ | 196,749 | $ | 187,415 | $ | 858,251 | $ | 698,992 | ||||||||||||||
GAAP noninterest income | $ | 167,637 | $ | 80,167 | $ | 14,210 | $ | 310,225 | $ | 238,713 | $ | 572,239 | $ | 673,206 | ||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction | 104,251 | 75,256 | 49,535 | 123,507 | 100,880 | 352,549 | 330,302 | |||||||||||||||||||||
GAAP total revenue | $ | 402,374 | $ | 300,732 | $ | 219,175 | $ | 506,553 | $ | 425,711 | $ | 1,428,834 | $ | 1,370,550 | ||||||||||||||
Non-GAAP taxable equivalent revenue, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction | $ | 339,384 | $ | 296,228 | $ | 254,932 | $ | 320,256 | $ | 288,295 | $ | 1,210,800 | $ | 1,029,294 | ||||||||||||||
GAAP operating efficiency ratio | 46.97 | % | 60.52 | % | 79.14 | % | 34.04 | % | 39.66 | % | 50.17 | % | 45.36 | % | ||||||||||||||
Non-GAAP, net of noncontrolling interests and excluding net losses on SVBIF Sale Transaction operating efficiency ratio | 54.06 | 59.83 | 65.97 | 52.81 | 57.29 | 57.65 | 59.16 |
Non-GAAP non-marketable and other securities, net of noncontrolling interests (Dollars in thousands) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
GAAP non-marketable and other securities | $ | 1,728,888 | $ | 1,703,550 | $ | 1,757,235 | $ | 1,770,456 | $ | 1,595,494 | ||||||||||
Less: amounts attributable to noncontrolling interests | 1,216,343 | 1,200,903 | 1,265,651 | 1,277,204 | 1,115,525 | |||||||||||||||
Non-GAAP non-marketable and other securities, net of noncontrolling interests | $ | 512,545 | $ | 502,647 | $ | 491,584 | $ | 493,252 | $ | 479,969 |
SVB Financial Group tangible common equity, tangible assets and risk-weighted assets (Dollars in thousands, except ratios) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
GAAP SVBFG stockholders’ equity | $ | 2,817,762 | $ | 2,721,957 | $ | 2,675,739 | $ | 2,094,000 | $ | 1,966,270 | ||||||||||
Tangible common equity | $ | 2,817,762 | $ | 2,721,957 | $ | 2,675,739 | $ | 2,094,000 | $ | 1,966,270 | ||||||||||
GAAP total assets | $ | 39,344,640 | $ | 36,041,007 | $ | 33,309,016 | $ | 29,711,039 | $ | 26,417,189 | ||||||||||
Tangible assets | $ | 39,344,640 | $ | 36,041,007 | $ | 33,309,016 | $ | 29,711,039 | $ | 26,417,189 | ||||||||||
Risk-weighted assets | $ | 21,845,473 | $ | 19,482,333 | $ | 18,429,007 | $ | 17,199,987 | $ | 16,901,501 | ||||||||||
Tangible common equity to tangible assets | 7.16 | % | 7.55 | % | 8.03 | % | 7.05 | % | 7.44 | % | ||||||||||
Tangible common equity to risk-weighted assets | 12.90 | 13.97 | 14.52 | 12.17 | 11.63 |
Silicon Valley Bank tangible common equity, tangible assets and risk-weighted assets (Dollars in thousands, except ratios) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
Tangible common equity | $ | 2,402,729 | $ | 2,324,461 | $ | 2,284,663 | $ | 1,737,916 | $ | 1,639,024 | ||||||||||
Tangible assets | $ | 37,611,291 | $ | 34,363,687 | $ | 31,634,882 | $ | 28,012,627 | $ | 24,854,119 | ||||||||||
Risk-weighted assets | $ | 21,544,831 | $ | 19,144,527 | $ | 18,059,726 | $ | 16,895,389 | $ | 16,612,870 | ||||||||||
Tangible common equity to tangible assets | 6.39 | % | 6.76 | % | 7.22 | % | 6.20 | % | 6.59 | % | ||||||||||
Tangible common equity to risk-weighted assets | 11.15 | 12.14 | 12.65 | 10.29 | 9.87 |
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