Parent Company Only Condensed Financial Information

The condensed balance sheets of SVB Financial at December 31, 2014 and 2013, and the related condensed statements of income, comprehensive income and cash flows for 2014, 2013 and 2012, are presented below.

Condensed Balance Sheets



	December 31,
(Dollars in thousands)	2014		2013
Assets:
Cash and cash equivalents	$	314,236	$	218,148
Investment securities	229,604		234,398
Net loans	16,684		4,791
Other assets	159,244		136,897
Investment in subsidiaries:
Bank subsidiary	2,404,101		1,639,024
Nonbank subsidiaries	149,558		160,271
Total assets	$	3,273,427	$	2,393,529

Liabilities and SVBFG stockholders’ equity:
5.375% Senior Notes	$	348,435	$	348,209
7.0% Junior Subordinated Debentures	54,845		55,020
Other liabilities	52,385		24,030
Total liabilities	455,665		427,259
SVBFG stockholders’ equity	2,817,762		1,966,270
Total liabilities and SVBFG stockholders’ equity	$	3,273,427	$	2,393,529

Condensed Statements of Income



	Year ended December 31,
(Dollars in thousands)	2014			2013			2012
Interest income	$	2,534		$	3,545		$	3,282
Interest expense	(21,863		)	(24,408		)	(23,037		)
Dividend income from bank subsidiary	—			10,000			—
Gains on derivative instruments, net	66,604			47,421			17,289
Gains on investment securities, net	8,750			15,238			15,329
Impairment loss on cumulative foreign currency translation losses	(9,564		)	—			—
General and administrative expenses	(53,912		)	(54,389		)	(66,812		)
Income tax (expense) benefit	(15,038		)	(15,824		)	12,200
Loss before net income of subsidiaries	(22,489		)	(18,417		)	(41,749		)
Equity in undistributed net income of nonbank subsidiaries	37,009			58,075			21,457
Equity in undistributed net income of bank subsidiary	249,405			176,195			195,395
Net income available to common stockholders	$	263,925		$	215,853		$	175,103

Condensed Statements of Comprehensive Income



	Year ended December 31,
(Dollars in thousands)	2014		2013			2012
Net income available to common stockholders	$	263,925	$	215,853		$	175,103
Other comprehensive income (loss), net of tax:
Foreign currency translation gains (losses)	3,012		(3,128		)	(114		)
Unrealized holding gains (losses) on securities available for sale	1,232		(1,449		)	2,074
Equity in other comprehensive income (losses) of subsidiaries	87,224		(152,740		)	21,194
Other comprehensive income (loss), net of tax	91,468		(157,317		)	23,154
Total comprehensive income	$	355,393	$	58,536		$	198,257

Condensed Statements of Cash Flows



	Year ended December 31,
(Dollars in thousands)	2014			2013			2012
Cash flows from operating activities:
Net income attributable to SVBFG	$	263,925		$	215,853		$	175,103
Adjustments to reconcile net income to net cash used for operating activities:
Gains on derivative instruments, net	(66,604		)	(47,421		)	(17,289		)
Gains on investment securities, net	(8,750		)	(15,238		)	(15,329		)
Net income of bank subsidiary	(249,405		)	(186,195		)	(195,395		)
Net income on nonbank subsidiaries	(37,009		)	(58,075		)	(21,457		)
Cash dividends from bank subsidiary	—			10,000			—
Amortization of share-based compensation	29,545			25,413			21,861
Decrease (increase) in other assets	44,006			(11,901		)	5,463
Increase in other liabilities	28,303			1,506			3,952
Impairment loss on SVBIF Sale Transaction	9,564			—			—
Other, net	584			(1,269		)	2,273
Net cash provided by (used for) operating activities	14,159			(67,327		)	(40,818		)

Cash flows from investing activities:
Net decrease in investment securities from purchases, sales and maturities	15,469			70,479			11,833
Net (increase) decrease in loans	(11,893		)	4,078			2,034
(Increase) decrease in investment in bank subsidiary	(432,804		)	(21,469		)	12,180
Decrease in investment in nonbank subsidiaries	44,714			9,925			13,012
Net cash (used for) provided by investing activities	(384,514		)	63,013			39,059

Cash flows from financing activities:
Principal payments of other long-term debt	—			—			(1,222		)
Tax benefit from stock exercises	9,431			6,826			5,581
Proceeds from issuance of common stock and ESPP	22,146			46,569			29,282
Net proceeds from public equity offering	434,866			—			—
Net cash provided by financing activities	466,443			53,395			33,641
Net increase in cash and cash equivalents	96,088			49,081			31,882
Cash and cash equivalents at beginning of period	218,148			169,067			137,185
Cash and cash equivalents at end of period	$	314,236		$	218,148		$	169,067