1Q2 2016 Corporate Overview and Financial Results 1 August 2016
Q2 2016
Corporate
Overview and
Financial Results
1 August 2016
2Q2 2016 Corporate Overview and Financial Results 1 August 2016
Contents
3
5
17
18
20
21
44
About SVB
Q2 2016 performance
Regulatory environment
Capital
Outlook for 2016
Appendix
Non-GAAP reconciliations
Special note regarding forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts
nor assurances of future performance. You can identify these and other forward-looking statements by the use of words such as “becoming,” “may,” “will,” “should,” "could," "would,"
“predict,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “seek,” “expect,” “plan,” “intend,” the negative of such words, or comparable terminology. Although we believe that
the expectations reflected in these forward-looking statements are reasonable, we have based these expectations on our current beliefs as well as our assumptions, and such expectations
may prove to be incorrect.
We wish to caution you that such statements are just predictions and actual events or results may differ materially, due to changes in economic, business and regulatory factors and trends.
We also refer you to the documents the Company files from time to time with the Securities and Exchange Commission, specifically the Company’s most recent Annual Report on Form 10-K.
These documents contain and identify important risk factors that could cause the Company’s actual results to differ materially from those contained in our projections or other forward-
looking statements. All forward-looking statements included in this presentation are made only as of the date of this presentation. We assume no obligation and do not intend to revise or
update any forward-looking statements contained in this presentation, except as required by law.
Please also refer to the slide in this presentation entitled “Additional information regarding forward looking statements.”
3Q2 2016 Corporate Overview and Financial Results 1 August 2016
30+ years of focus on innovation
companies, investors and influencers
Strong market position
Robust client funds franchise
Diversified revenue streams
Global reach
Average balances for Q2’16
* Total Client Funds refers to the sum of on-balance sheet deposits and off-balance sheet client investment funds
$43.4B
$18.2B
$81.0B
A unique financial services
company
total client funds*
assets
loans
4Q2 2016 Corporate Overview and Financial Results 1 August 2016
We serve the global
innovation economy
Technology + Life Sciences + Healthcare
4
Accelerator
Revenue
<$5M
Growth
Revenue
$5M-$75M
Corp Fin
Revenue
>$75M
Investors
Private Equity
Venture Capital
Individuals
Private Bank
5Q2 2016 Corporate Overview and Financial Results 1 August 2016
• Greater clarity on environment
• Outstanding loan growth; lower deposits
• PE/VC gains better, but soft
• Stable credit quality
• Leverage ratio solid
• Positive outlook for 2016
…but challenges
• Early-stage market “recalibration”
• Low interest rates
• Complex regulatory environment +
increasing requirements
• Competition
Q2’16 Takeaways
6Q2 2016 Corporate Overview and Financial Results 1 August 2016
Q2’16 vs. Q1’16: solid results
Average loans: +7.0%
Period-end loans: +6.2%
Non-interest income:
increased 30.9% although
“core fee”4 income
declined 2.7%
Gains of $5.1m2 on warrants
and $23.3m on investment
securities2,3
Net interest income: +0.7%
and +6 bps improvement to
net interest margin
Average total client funds1
were relatively flat
Average fixed income
securities decreased 6.7%
1. Total Client Funds refers to the sum of on-balance sheet deposits and off-balance sheet client investment funds.
2. The value of warrant and PE/VC-related investments is subject to potential increases or decreases in future periods, depending on market conditions
and other factors.
3. Non-GAAP gains on investment securities net of non-controlling interests were $21.6m; this figure includes gains of $12.4m from the sale of U.S.
Treasury securities to support loan growth. Please see non-GAAP reconciliations at the end of this presentation for more information.
4. “Core Fee” income is defined as fees from letters of credit, client investments, credit cards, deposit service charges, foreign exchange and lending-
related fees, in aggregate. This is a non-GAAP measure. Please see non-GAAP reconciliations at the end of this presentation for more information.
Stable credit quality overall with net charge-offs of 43 bps (annualized)
and non-performing loans of 66 bps
Solid capital position and increases in all key capital ratios;
Bank tier 1 leverage ratio of 7.56% (+37 bps)
Strong loan growth, stable credit and
improved PE/VC-related gains
7Q2 2016 Corporate Overview and Financial Results 1 August 2016
1H’16 warrant and investment securities gains
Pressured by VC market factors
• Valuation “recalibration” for public and private tech companies
• Lack of VC-backed IPOs; tempered M&A market
• Slower pace of early-stage investment
* This is a non-GAAP measure. Please see non-GAAP reconciliations at the end of this presentation for more information.
We expect these factors to put pressure on gains from
warrants and investment securities throughout 2016.
Q2’16 included $12.4m gain
from sale of U.S. Treasury
securities
$16
$13
$10
-$2
$22$24
$11
$16
$7 $5
-$5
$0
$5
$10
$15
$20
$25
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
M
ill
io
ns
Net gains (losses) on investment securities net of non-controlling interests* Net equity warrant gains
8Q2 2016 Corporate Overview and Financial Results 1 August 2016
Average loans grew 27% year over year
Private Equity capital call lines drove Q2 growth of 7%
(versus Q1’16), but we saw growth across all segments
$14.3 $14.9 $15.7
$17.0 $18.2
$14.3
$15.3
$16.7
$17.7
$18.8
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
B
ill
io
ns
Average loans Period-end loans
9Q2 2016 Corporate Overview and Financial Results 1 August 2016
A diversified loan portfolio
1. As of 6/30/2016; gross loans do not include the impact of deferred fees and costs.
2. Private Bank segment includes loans designated as Consumer Loans in our earnings
releases and our Form 10-K and 10-Q reports.
3. Tech, LS and Healthcare percentages are as a % of Total Gross Loans
Gross Loans: $18.9 Billion1,2 Technology, Life Science & Healthcare Only
1,3
$8.5 Billion (45% of Gross Loans)
Non-Early stage
$0.7
Balance-sheet
dependent
covered by current
assets; $1.7B is asset-
based
Cash flow dependent 1
Early Stage
$1.2
Balance Sheet
$2.7
Sponsored Buyout
$2.1
Investor-dependent 1
Revenue: $0-$5MM
5%
14%
11%
Investor-dependent 2
Revenue >$5MM
6%
9% Other$1.8
Cash flow dependent 2
Cash flow and hybrid
Software & Internet
$5.6
29%
Hardware
$1.1
6%
Life Science
& Healthcare
$1.8
10%
PE/VC
Capital Call Lines
$7.1
38%
Wine
$0.8
4%
Private Bank
$2.0
11%
Other
$0.5
2%
10Q2 2016 Corporate Overview and Financial Results 1 August 2016
Average total client funds flat in Q2’16
• Client funds franchise still strong
• Lower market valuations, weak exit markets and client M&A activity were
primary drivers in Q2
$35.0 $37.4 $38.9 $39.3 $38.2
$37.9
$42.0 $43.4 $42.5 $42.9
$72.8
$79.4 $82.3 $81.7 $81.0
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
Billions
Average off-balance sheet client investment funds
Average deposits
11Q2 2016 Corporate Overview and Financial Results 1 August 2016
$94.6
$283.67.39%
2.73%
2%
3%
4%
5%
6%
7%
8%
$80
$120
$160
$200
$240
$280
$320
Q
2'
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Net interest income Net interest margin
Net interest income grew 16.2% year over year
Millions
• Lower deposits and resulting decrease in investments resulted in slower NII growth of
0.7% in Q2 despite strong loan growth
• Net interest margin increased 6 basis points
12Q2 2016 Corporate Overview and Financial Results 1 August 2016
Millions
Credit quality was stable
Net charge-offs decreased but
continued to be driven primarily
by early-stage loans; early stage
loans drove 65% of net charge-
offs while representing 6% of
loans
The increase in non-performing
loans was driven primarily by the
addition of one new sponsored
buyout loan
The provision of $36.3m (vs.
$33.3m in Q1’16) consisted of
$15.4m in reserves for new
nonaccrual loans, $13.0m for
charge-offs that did not previously
have a specific reserve and
$10.7m for loan growth, offset by
a decrease in the reserves for
performing loans
Q2’16 Credit Drivers
Stress in early-stage portfolio (as expected)
0.23%
0.05%
0.75%
0.43%
$5.5
$1.7
$28.5
$19.4
0.0%
1.0%
2.0%
Net charge-offs/average total gross loans (annualized)
Net charge-offs
0.38% 0.10%
0.66%
$38.1
$11.8
$124.7
0.0%
0.5%
1.0%
1.5%
2.0%
Non-performing loans/total gross loans
Non-performing loans
13Q2 2016 Corporate Overview and Financial Results 1 August 2016
Our credit risk profile has improved over time
• Technology and Life Sciences & Healthcare lending represents only 45 percent of total
loans (compared to 56 percent in 2007)
• The strongest growth has come from segments with the best credit performance:
Private Equity Capital Calls and Private Bank.
• Growth in these areas has reduced the risk profile of our loan portfolio.
• PE/VC Capital Call lines, Private Bank and Wine represented 53 percent of the loan
portfolio at 6/30/16 (compared to 38 percent in 2007) and which have experienced
nominal losses over the last decade.
• Majority of loan losses have come from early-stage (ES) portfolio historically; ES loans
were 6 percent of total loans in Q2’16 vs. 14 percent in 2007.
1.1%11% 3.5%
2015 ES
loss rate
Peak annual
ES loss rates
(2009)
Average ES
loss rate
(2008-2015)
5.1%
1H’2016
annualized
ES loss rate
14Q2 2016 Corporate Overview and Financial Results 1 August 2016
Total Non-Interest Income
Non-interest income
$257.7 $238.7 $310.2 $14.2 $80.2 $167.6 $123.5 $126.3 $108.5 $114.5 $86.1 $112.8
Q2’16 non-GAAP non-interest income1 included the following components:
• Non-GAAP gains on investment securities net of non-controlling interests of $21.6m, which includes a $12.4m gain
on sale of U.S. Treasury securities and $9.6m of gains on our venture capital related investments.
• Gains on derivative instruments of $8.8m, which reflects $5.1m of net warrant gains
• “Core fee” income2 of $74.5m
• Other non-interest income of $6.3m
1) Gains on investment securities net of non-controlling interests and “core fee” income are non-GAAP measures. Please see non-GAAP reconciliations at end of this
presentation for more information.
2) “Core Fee” income is defined as fees from letters of credit, client investments, credit cards, deposit service charges, foreign exchange and lending-related fees, in
aggregate. This is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for more information.
Millions
$105.8 $100.9
$123.5
$49.5
$75.3 $104.3
$109.4 $117.7 $102.1 $111.8 $88.8
$111.2
$0
$50
$100
$150
$200
$250
$300
$350
GAAP Non-Interest Income
Non-GAAP Non-Interest Income net of Non-Controlling Interests
15Q2 2016 Corporate Overview and Financial Results 1 August 2016
$43.2
$49.0 $50.9 $50.0
$53.3 $55.3
$58.2
$66.1 $68.4
$72.7
$76.5 $74.5
$0
$10
$20
$30
$40
$50
$60
$70
$80
Millions
Total "Core Fee" Income
“Core fee” 1 income
1) This is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for more information.
“Core Fee” income comprises fees from letters of credit,
client investments, credit cards, deposit service charges,
foreign exchange and lending-related fees, in aggregate.
16Q2 2016 Corporate Overview and Financial Results 1 August 2016
$13.7 $15.9
$17.2 $17.9 $17.9 $18.6 $17.7
$22.4 $23.0 $24.0
$27.0 $24.1
$8.2
$9.2
$10.3 $10.3 $10.9 $10.4 $12.1
$14.2 $14.5
$15.8
$15.5
$15.4
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Millions
Foreign exchange fees Credit card & payment fees
23.2%
CAGR
Q3’13-Q2’16
1) “Core Fee” income is defined as fees from letters of credit, client investments, credit cards, deposit service charges, foreign exchange and lending-related fees, in
aggregate. This is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for more information.
2) FX increase in Q1’16 vs. Q4’15 was primarily driven by a reclassification of fees on forward contracts previously reflected in gains and losses on derivative instruments.
Foreign exchange2 and credit card fees have driven 57%
of core fee income increases since Q3’13
“Core fee”1 income growth drivers
20.8%
17Q2 2016 Corporate Overview and Financial Results 1 August 2016
Complex regulatory environment
As a global, commercial bank with a holding
company structure, we face a more complex
regulatory landscape.
We have invested for years, and continue to
invest, in regulatory and compliance
infrastructure – people, processes and systems.
Key Areas of Regulatory Focus
• Road to $50B
• Enhanced Prudential Standards, including
– “CCAR”
– Stress testing
• BSA/AML
• Volcker Rule
• “Basel III”*
* Refers to the adoption of the rules implementing the "Basel III" regulatory capital reforms and changes required by the Dodd-Frank Act
18Q2 2016 Corporate Overview and Financial Results 1 August 2016
We are well capitalized: Holdco capital ratios1
1) All ratios, except TCE/TA and TCE/RWA are as reported in our most recent bank holding company consolidated reports on Form FR Y9C. TCE/TA and TCE/RWA
ratios are as reported in our most recent financial releases.
2) These are non-GAAP measures. Please see non-GAAP reconciliations at end of this presentation for more information.
2011 2012 2013 2014 2015 Q1’16 Q2’16
CET 1 risk-based
Capital
- - - - 12.28% 12.38% 12.43%
Tier 1 risk-based
capital
12.62% 12.79% 11.94% 12.91% 12.83% 12.86% 12.89%
Total risk-based
capital
13.95% 14.05% 13.13% 13.92% 13.84% 13.90% 13.92%
Tier 1 leverage 7.92% 8.06% 8.31% 7.74% 7.63% 7.69% 8.08%
Tangible common
equity to tangible
assets2
7.86% 8.04% 7.43% 7.15% 7.16% 7.76% 8.13%
Tangible common
equity to risk-
weighted assets2
13.25% 13.53% 11.61% 12.93% 12.34% 12.82% 12.91%
19Q2 2016 Corporate Overview and Financial Results 1 August 2016
2
We are well capitalized: Bank capital ratios1
1. All ratios, except TCE/TA and TCE/RWA are as reported in our most recent Bank Call Reports. Bank TCE/TA and TCE/RWA ratios are as reported in our most
recent financial releases.
2. These are non-GAAP measures. Please see non-GAAP reconciliations at end of this presentation for more information.
• Exceptional deposit growth has pressured Tier 1 Leverage ratio over time, although a decline in total
assets driven by tempered deposit growth in 1H’16 increased Tier 1 Leverage
• “Basel III” adoption in January 2015
• Down-streamed capital from holding company (from Q2’14 $435M common equity raise and Q1’15
$350M debt raise) increased bank capital ratios across the board
2011 2012 2013 2014 2015 Q1’16 Q2’16
CET 1 risk-based
Capital
- - - - 12.52% 12.57% 12.57%
Tier 1 risk-based
capital
10.96% 11.24% 10.11% 11.09% 12.52% 12.57% 12.57%
Total risk-based
capital
12.33% 12.53% 11.32% 12.12% 13.60% 13.66% 13.65%
Tier 1 leverage 6.87% 7.06% 7.04% 6.64% 7.09% 7.19% 7.56%
Tangible common
equity to tangible
assets2
7.18% 7.41% 6.58% 6.38% 6.95% 7.55% 7.90%
Tangible common
equity to risk-
weighted assets2
11.75% 12.08% 9.84% 11.19% 12.59% 13.03% 13.07%
20Q2 2016 Corporate Overview and Financial Results 1 August 2016
Business Driver 2016 Full Year Outlook vs. 2015 Full Year Results Change since 4/21/16
Average loans Increase at a percentage rate in the mid 20s
Increased from “low 20s” due to better-than-expected
average loan growth in 1H’16
Average deposits Increase at a percentage rate in the mid single digits
Decreased from low double digits due to lower deposit
balances in Q2’16 driven by “recalibration” of the VC
funding environment
Net interest income1, 2 Increase at a percentage rate in the mid-teens No change
Net interest margin1, 2 Between 2.60% and 2.80% Increased from “between 2.50% and 2.70%” due to strong loan growth
Allowance for loan losses
for total gross performing loans
as a % of total gross performing loans
Comparable to 2015 levels No change
Net loan charge-offs 0.30%-0.50% of avg. total gross loans
No change; we expect to see full year 2016 net charge-
offs closer to the top of our outlook range of 50 basis
points of average total gross loans
Non-performing loans/total gross
loans
Between 0.60% and 1.00% of total gross
loans No change
“Core fee” income 3,4 Increase at a percentage rate in the low 20s
Decreased from “mid 20s” due to impact of lower
average credit card spend, lower foreign exchange
transaction sizes and lower off-balance sheet client
investments due to current VC funding and exit markets
Non-interest expense (excluding
expense related to non-controlling
interests)1,4
Increase at a percentage rate in the high
single digits No change
2016 full-year outlook (as of 7/21/16)
1) Our outlook reflects management’s expectations of our financial performance, which is based on our current beliefs and assumptions. Such expectations may prove to be incorrect
and actual results may differ. Please see our “Special Note on Forward-Looking Statements” note at the beginning of this presentation as well as our “Additional Information
Regarding Forward-Looking Statements” note at the end of this presentation.
2) Assumes no increases to the Federal Funds Target Rate through the end of 2016.
3) “Core fee” income is defined as fees from letters of credit, client investments, credit cards, deposit services, foreign exchange, and lending-related fees, in aggregate.
4) This is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for more information. This measure excludes certain line items where performance is
typically subject to market or other conditions beyond our control. As we are unable to quantify such line items that would be required to be included in the comparable GAAP financial
measure for the future period presented without unreasonable efforts, no reconciliation for the outlook of non-GAAP core fee income to GAAP noninterest income for fiscal 2016 is
included in this release, as we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors.
21Q2 2016 Corporate Overview and Financial Results 1 August 2016
Appendix
22Q2 2016 Corporate Overview and Financial Results 1 August 2016
23
26
28
29
34
35
36
38
39
40
43
44
About SVB
Financial highlights
ROE
Balance sheet
Interest rate sensitivity
Credit quality
Investment securities and warrant gains (losses)
Efficiency ratio
Regulatory initiatives
Venture capital trends
Additional information regarding forward-looking statements
Non-GAAP reconciliations
Appendix – contents
23Q2 2016 Corporate Overview and Financial Results 1 August 2016
At the center of the innovation
economy for over 30 years
Silicon Valley Bank
Global commercial banking
for innovators, enterprises
and investors
SVB Capital
Private venture investing
expertise, oversight
and management
SVB Private Bank
Private banking
SVB Analytics
Strategic advisory, research
and valuation services
(certain services provided by SVB Securities)
SVB Asset Management
Investment strategies and
solutions to help companies
preserve and grow capital
SVB Wealth Advisory
Private wealth management
24Q2 2016 Corporate Overview and Financial Results 1 August 2016
SVB Offices
SVB Coverage
SVB’s International Banking Network
China
Hong KongIsrael
U.K.
U.S.
2016
Serving innovation
around the world
$1.5B
(+36.9%)
international
loans*
$6.9B
(+10.1%)
international
deposits*
28%
Increase in
international
clients*
*Average loan and deposit balances at 6/30/16
(Growth rates Q2’16 compared to Q2’15)
25Q2 2016 Corporate Overview and Financial Results 1 August 2016
• Average tenure of 12 years at SVB
• Diverse experience and skill sets to help direct our growth
A strong, seasoned management team
Greg Becker
PRESIDENT & CEO
SILICON VALLEY BANK &
SVB FINANCIAL GROUP
23 years at SVB
Phil Cox
HEAD OF EMEA AND PRESIDENT
OF THE UK BRANCH
7 years at SVB
Mike Dreyer
CHIEF OPERATIONS OFFICER
Recently joined
Joan Parsons
HEAD OF SPECIALTY BANKING
22 years at SVB
Marc Cadieux
CHIEF CREDIT OFFICER
24 years at SVB
Mike Descheneaux
CHIEF FINANCIAL OFFICER
10 years at SVB
Chris Edmonds-Waters
HEAD OF HUMAN RESOURCES
13 years at SVB
Bruce Wallace
CHIEF DIGITAL OFFICER
8 years at SVB
John China
HEAD OF RELATIONSHIP
BANKING
20 years at SVB
Michelle Draper
CHIEF MARKETING OFFICER
3 years at SVB
Roger Leone
CHIEF INFORMATION OFFICER
1 year at SVB
Michael Zuckert
GENERAL COUNSEL
2 years at SVB
26Q2 2016 Corporate Overview and Financial Results 1 August 2016
Q2’15 Q3’15 Q4’15 Q1’16 Q2’16
Diluted earnings per share $1.66 $1.57 $1.68 $1.52 $1.78
Net income available to common stockholders $86.1M $81.7M $87.5M $79.2M $93.0M
Average loans
(change)
$14.3B
2.1%
$14.9B
4.2%
$15.7B
5.6%
$17.0B
8.0%
$18.2B
7.0%
Average deposits
Change
$35.0B
3.2%
$37.4B
6.9%
$38.9B
4.1%
$39.3B
1.0%
$38.2B
-2.8%
Average off-Balance sheet client investment funds
(change)
$37.9B
12.6%
$42.0B
10.8%
$43.40B
3.5%
$42.5B
-2.2%
$42.9B
1.0%
Average fixed income securities $21.4B $22.9B $23.5B $23.4B $21.8B
Net interest margin 2.58% 2.50% 2.54% 2.67% 2.73%
Net interest income $243.8M $254.7M $269.1M $281.4M $283.3M
Non-GAAP non-interest income 1 $117.7M $102.1M $111.8M $88.8M $111.2M
Net charge-offs /
Average total gross loans (annualized)
0.05% 0.75% 0.28% 0.49% 0.43%
Non-interest expense $194.1M $184.8M $208.6M $204.0M $200.4M
Return on average SVBFG stockholders’ equity
(annualized)
11.40% 10.35% 10.74% 9.58% 10.83%
Return on average assets (annualized) 0.88% 0.77% 0.80% 0.72% 0.86%
1) Non-GAAP non-interest income net of non-controlling interests. This is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for more information.
Quarterly highlights
27Q2 2016 Corporate Overview and Financial Results 1 August 2016
2011 2012 2013 2014 2015
Diluted earnings per share $3.94 1,2 $3.91 3 $4.67 4 $5.31 5 $6.62
Net income available to common stockholders $171.9M 1,2 $175.1M 3 $214.5M 4 $263.9M 5 $343.9M
Average loans
(change)
$5.8B
31.1%
$7.6B
30.0%
$9.4B
23.7%
$11.5B
23.0%
$14.8B
28.3%
Average deposits
(change)
$15.6B
29.4%
$17.9B
15.0%
$19.6B
9.5%
$28.3B
44.4%
$36.3B
28.2%
Average off-Balance sheet client investment funds
(change)
$17.7B
12.9%
$20.2B
14.0%
$24.2B
19.8%
$30.0B
24.0%
$39.2B
30.6%
Average fixed-income securities 6 $9.4B $10.7B $10.6B $16.6B $22.3B
Net interest margin 3.08% 3.19% 3.29% 2.81% 2.57%
Net interest income $526.3M $617.9M $697.3M $856.6M $1,006.4M
Non-GAAP non-interest income 7 $222.7M $240.4M $330.3M $352.5M $441.1M
Net charge-offs /
Average total gross loans (annualized)
(0.02%) 0.31% 0.33% 0.32% 0.31%
Non-interest expense $500.6M $546.0M $615.2M 4 $707.2M 4 $778.0M
Return on average SVBFG stockholders’ equity
(annualized)
11.87% 1,2 10.09% 3 11.20% 10.46% 5 11.18%
Return on average assets (annualized) 0.92% 1,2 0.82%3 0.93% 0.80% 5 0.84%
1. Includes gains of $0.52/share or $22.5M (net of tax) from sales of AFS securities
2. Includes gains of $0.04/share or $1.9M (net of tax) from the early extinguishment of debt and the termination of corresponding interest rate swaps
3. Includes gains of $0.12/share or $5.5M (net of tax) from sales of AFS securities and certain assets related to our equity management services business
4. Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our
investments in qualified affordable housing projects (ASU 2014-01).
5. Includes post-tax net loss of $11.4M related to the sale of our SVBIF entity in India
6. Includes available-for-sale and held-to-maturity securities held on the balance sheet
7. Non-GAAP noninterest income, net of non-controlling interests. This is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for
more information
Annual highlights
28Q2 2016 Corporate Overview and Financial Results 1 August 2016
Pressure on asset yields due to low interest rates and deposit growth, as well
as continued investment in our growth and expansion have impacted ROAE.
Strong return on average equity vs. peers1
1) “Peers” refers to peer group as reported in our 2016 Proxy Statement and updated as of 3/31/16. Peer ROAE data is from SNL Financial and reflects available
data to date.
2) Annualized
15.17%
17.98%
10.38%
2.68%
7.72%
11.87%
10.09%
11.20%
10.46%
11.18%
10.16%12.13%
9.73%
2.85%
-4.45%
5.70%
8.54%
9.27% 9.42% 8.82% 9.05% 9.02%
-5%
0%
5%
10%
15%
20%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H'16
SVB Peers
2
29Q2 2016 Corporate Overview and Financial Results 1 August 2016
A highly liquid balance sheet (6/30/16)
Period-end assets
$43.1 Billion
Period-end liabilities
$39.5 Billion
* Net of non-controlling interests, non-marketable securities were $542 million. This is a non-GAAP measure. Please see non-GAAP reconciliations at end of presentation
for more information.
Non-marketable securities
(VC Investments)
2%
$0.7B*
Net loans
43%
$18.6B
AFS securities
(primarily
agencies)
30%
$13.1B
Held-to-
maturity
securities
19%
$8.2B
Cash
4%
$1.9B
Other
2%
$0.8B
Borrowings
3%
$1.3B
Interest-
bearing deposits
19%
$7.3B
Non-interest-
bearing deposits
77%
$30.3B
Other
1%
$0.6B
30Q2 2016 Corporate Overview and Financial Results 1 August 2016
A growing balance sheet (period-end balances)
Investment portfolio = 49%
of Total Assets at 6/30/16
Non-Interest-Bearing Deposits
= 81% of Total Deposits at
6/30/16
Billions Billions
$20.0
$22.8
$26.4
$39.3
$44.7 $43.1
$0
$15
$30
$45
2011 2012 2013 2014 2015 Q2'16
Other assets Net loans
Non-marketable securities Held-to-maturity securities
Available-for-sale securities Cash and cash equivalents
$17.7
$20.2
$23.3
$35.3
$41.4
$39.5
$0
$15
$30
$45
2011 2012 2013 2014 2015 Q2'16
Other liabilities Borrowings
Interest bearing deposits Noninterest-bearing deposits
31Q2 2016 Corporate Overview and Financial Results 1 August 2016
A high quality investment portfolio
A highly liquid portfolio with a duration of 2.4 years (at 6/30/16)
Available-for-Sale Securities * Held-to-Maturity Securities
Investment portfolio represents 49% of total assets
Billions Billions
U.S. Treasuries make up 42% of investment portfolio
Municipal bonds and notes
Non-agency mortgage-backed securities
U.S. agency debentures
Equity Securities
Agency-issued commercial mortgage-backed securities
Agency-issued collateralized residential mortgage-backed securities – variable rate
U.S. Treasury Securities
Agency-issued collateralized residential mortgage-backed securities – fixed rate
Agency-issued residential mortgage-backed securities
* In June 2014, certain Available-for-Sale (AFS) securities were re-designated as Held-to-Maturity securities. Prior to June 2014, our investment securities
portfolio comprised only AFS securities.
2.2
3.8
1.2
0.6
$5.5
$7.4 $7.7
$8.8 $8.2
$0
$2
$4
$6
$8
$10
9.0
2.3
1.2
0.5
$10.5
$11.3 $12.0 $11.7
$13.5
$16.4
$13.1
$-
$2
$4
$6
$8
$10
$12
$14
$16
32Q2 2016 Corporate Overview and Financial Results 1 August 2016
$16.7 $19.2 $22.5 $34.3 $33.9 $35.6 $37.0 $39.1 $38.8 $37.6
$18.7
$22.5
$26.4
$32.4 $35.2
$40.1
$43.6 $44.0 $42.3 $43.1
$35.5
$41.7
$48.8
$66.7 $69.1
$75.7
$80.6 $83.1 $81.0 $80.7
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2011 2012 2013 2014 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
Bi
lli
on
s
Period-end client investment funds
Period-end deposits
Period-end total client funds
* Total client funds consists of on-balance sheet deposits and off-balance sheet client investment funds.
Robust client liquidity
Long-term Growth Drivers
• Significant client funding and exit activity
• Healthy increases in early-stage and private
equity client counts
1H’16 market
dynamics resulting in
slower client fund
flows
• Lower valuations
• Slower early-stage
funding
• Lack of VC-backed
exits
• M&A by and of our
clients
33Q2 2016 Corporate Overview and Financial Results 1 August 2016
Strong loan growth
$3.5 $4.6 $4.7 $4.4
$5.8
$7.6
$9.4
$11.5
$14.8
$17.0
$18.2
$4.2
$5.5
$4.5
$5.5
$7.0
$8.9
$10.9
$14.4
$16.7
$17.7
$18.8
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
B
ill
io
ns
Average loans
Period-end loans
Private Equity capital call lines of credit, Private Bank and Global
have been strong growth drivers for the past three years.
34Q2 2016 Corporate Overview and Financial Results 1 August 2016
Changes in Fed
Funds Rate
(basis points)
Changes in Net
Interest Income
(tax effected)
Incremental
EPS Effect
Incremental
ROE Effect
Net Interest
Margin Effect
+100 +$93 million +$1.79 +2.08% +0.38%
+200 +$193 million +$3.70 +4.18% +0.77%
+300 +$293 million +$5.61 +6.18% +1.17%
We expect each 25 bps increase in short-term rates to contribute
approximately $23 million to Net Interest Income*
We expect rising rates to benefit us significantly
As reported in our sensitivity analysis included in our Form 10-K and Form 10-Q reports pursuant to applicable SEC requirements; these estimates are reported on a
post-tax basis and are based on a static balance sheet and assumptions as of June 30, 2016. Actual results may differ.
35Q2 2016 Corporate Overview and Financial Results 1 August 2016
3.32%
-0.08%
2.64%
-0.02%
0.49%*
0.43%*
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1'16Q2'16
Net charge-offs as % of average total gross loans
$18.4
$7.6
$87.2
$123.4 $114.0
$124.7
1.07%
0.18%
1.57%
0.73%0.64%
0.66%
$0
$40
$80
$120
$160
$200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1'16 Q2'16
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Non-performing loans Non-performing loans as % total gross loans
Millions
Financial Crisis:
5 problem loans drove
short-lived spike in
NPLs
History of strong credit quality
Though elevated, NPLs from Q2’15 through Q2’16
remain manageable, driven primarily by four
Sponsored Buyout (SBO) loans, one of which was
repaid in Q1’16. To date we have had no losses in our
SBO portfolio.
Financial Crisis:
5 problem loans drove
short-lived spike in
NCOs
* Annualized
36Q2 2016 Corporate Overview and Financial Results 1 August 2016
$36.5
$26.1
$37.4
($22.1)
($1.1)
$16.6 $19.1 $15.9 $12.7 $9.6
($2.0)
$21.6
$18.8
$16.6
$25.4
$12.3 $13.0
$20.2 $20.3 $23.6
$10.7 $16.4
$6.6
$5.1
-$30
-$20
-$10
$0
$10
$20
$30
$40
$50
$60
$70
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
M
illi
on
s
Net equity warrant gains (losses)
Net gains (losses) on investment securities net of non-controlling interests*
Investment Securities and Warrant Gains
Valuation
gains of
$21.8m net
of NCI
related to
FireEye IPO
Losses of $22.1m, net of
NCI, related to decline in
FireEye valuations
Net warrant gains
of $13.9m related
to FitBit IPO
Net warrant gains
of $15.2m related
to FireEye IPO,
Losses of $2.0m , net of
NCI, related to decline in
public market valuations,
as well as a lack of exits
* This is a non-GAAP measure. Please see non-GAAP reconciliations at end of presentation for more information.
Includes gains of $12.4m
from the sale of U.S.
Treasury securities to
support loan growth
Lower net warrant
gains due to lower
valuations and
lack of VC-backed
exits
37Q2 2016 Corporate Overview and Financial Results 1 August 2016
Net warrant gains have outstripped early-stage
loan losses over time
$84M
($3)
$8 $3 $3
$22 $23
$11 $7
$37
$19
$46
$71 $71
$12
($13) ($1) ($2) ($7) ($10) ($16)
($58)
($23)
($1)
($21)
($26) ($30)
($12)
($29)
-$60
-$40
-$20
$0
$20
$40
$60
$80
$100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD
2016
M
ill
io
ns
Net Gains on Equity Warrants Net of Early-Stage Loan Losses
2002 through 6/30/16
Cumulative net gains (warrants minus ES NCOs) Net gains (losses) on warrants
Early-stage net charge-offs
38Q2 2016 Corporate Overview and Financial Results 1 August 2016
$492 $535
$603
$688
$777
$204 $200
65.6%
62.2%
58.5% 56.9% 53.6% 55.1% 50.7%
$0
$200
$400
$600
$800
2011 2012 2013 2014 2015 Q1'16 Q2'16
Non-GAAP non-interest expense net of non-controlling interests
Non-GAAP efficiency ratio
Millions
1. These are non-GAAP measures. Please see non-GAAP reconciliations at end of this presentation for more information.
2. Non-GAAP non-interest expense net of non-controlling interests and non-GAAP efficiency ratio exclude the impact of non-controlling interests
1,2
1,2
Efficiency ratio trending down
Q2 decrease in efficiency ratio
driven primarily by $12.4m gain
on sale of U.S. Treasury
securities as well as higher gains
on VC-related investments
39Q2 2016 Corporate Overview and Financial Results 1 August 2016
Initiative Status
Enhanced Prudential Standards
Continued progress to prepare for more stringent prudential requirements relating to capital,
liquidity, risk management, resolution planning and other areas applicable for a >$50B
financial institution
Capital Stress Testing
Capital stress testing results disclosed in June 2015; integrated with strategic planning cycle;
idiosyncratic stress scenarios being developed and performed
Liquidity Stress Testing
Quarterly testing/internal reporting since 2010; liquidity management practices separately at
both the Bank and Parent level
Model Risk Management Program in place and continuing to develop
Risk Governance & Oversight Board involvement, including formation of Risk Committee; Risk Appetite Statement
Enterprise Risk Management Covers all material risks: Credit, Liquidity, Market, Operational, Legal/Compliance
Compliance Infrastructure
Continued investment in compliance infrastructure and staff, including “Basel III*” and
BSA/AML
Volcker Rule Compliance
Ongoing; no new material commitments of our own capital since 2010; regulatory deadline in
July 2017
Liquidity Coverage Ratio/
High Quality Liquid Assets
As of 6/30/16: $21.3B short-duration, fixed-income portfolio (49% of assets); composed
predominantly of Federal National Mortgage Association, Federal Home Loan Mortgage
Corporation, Government National Mortgage Association and U.S. Treasury securities
Infrastructure
Continuous investment in people, processes and systems, particularly data governance, to
support all of the above
Continued regulatory focus: ongoing efforts,
investment and yet more to do
* Refers to the adoption of the rules implementing the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act
40Q2 2016 Corporate Overview and Financial Results 1 August 2016
Venture capital investment levels have been
healthy overall despite recalibration
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
Q2’16 was dominated by large investments into later-stage
companies and lower levels of early-stage investment
$105
$20 $20
$60
$28
8,042
3,038 3,183 4,535
1,972
$0
$20
$40
$60
$80
$100
$120
2000 2002 2004 2006 2008 2010 2012 2014 2016
YTD
B
ill
io
ns
VC Investment # Deals
41Q2 2016 Corporate Overview and Financial Results 1 August 2016
VC fundraising has been healthy overall
Source: Thomson Reuters and National Venture Capital Association
Investors have plenty of “dry powder” while they evaluate
their next steps
$101
$9
$16
$31 $29
$12
$9
632
160 162
274
249
67 67
$0
$11
$22
$33
$44
$55
$66
$77
$88
$99
$110
B
ill
io
ns
Dollars # Funds
42Q2 2016 Corporate Overview and Financial Results 1 August 2016
IPOs remained slow in Q2’16
Source: Thomson Reuters and National Venture Capital Association, includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile
$19
$30
$13
$48
$18
$14
378
273
486
398
155
$-
$10
$20
$30
$40
$50
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD 2016
Bi
lli
on
s
M&A
M&A $$ (Disclosed) M&A Deals
$5 $0
$21 $16
$9
$1
57
6
48
117
77
18
$-
$5
$10
$15
$20
$25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD 2016
Bi
lli
on
s
IPO
IPO $$ IPO Deals
There were three tech IPOs in Q2’16 versus zero in Q1’16
43Q2 2016 Corporate Overview and Financial Results 1 August 2016
As discussed under “Special Note Regarding Forward-Looking Statements,” our actual results of operations and financial performance could
differ significantly from those expressed in or implied by our management’s forward-looking statements. Important factors that could cause
our actual results and financial condition to differ from the expectations stated in the forward-looking statements include, among others: (i)
market and economic conditions, including the interest rate environment, and the associated impact on us; (ii) the credit profile and credit
quality of our loan portfolio and volatility of our levels of nonperforming assets and charge-offs; (iii) the adequacy of our allowance for loan
losses and the need to make provisions for loan losses for any period; (iv) the borrowing needs of our clients; (v) the sufficiency of our
capital and liquidity positions; (vi) the levels of loans, deposits and client investment fund balances; (vii) the performance of our portfolio
investments; the general condition of the public and private equity and mergers and acquisitions markets and their impact on our
investments, including equity warrant assets, venture capital and private equity funds and direct equity investments; (viii) our overall
investment plans and strategies; the realization, timing, valuation and performance of our equity or other investments; (ix) the levels of
public offerings, mergers and acquisitions and venture capital investment activity of our clients that may impact the borrowing needs of our
clients; (x) the occurrence of fraudulent activity, including breaches of our information security or cyber security-related incidents; (xi)
business disruptions and interruptions due to natural disasters and other external events; (xii) the impact on our reputation and business
from our interactions with business partners, counterparties, service providers and other third parties; (xiii) expansion of our business
internationally; (xiv) the impact of legal requirements and regulations limiting or restricting our activities or resulting in higher costs,
including the Volcker rule; (xv) the impact of lawsuits and claims; (xvi) changes in accounting standards; (xvii) the levels of equity capital
available to our client or portfolio companies; and (xviii) our ability to maintain or increase our market share, including through successfully
implementing our business strategy and undertaking new business initiatives. For additional information about these and other factors,
investors should refer to the documents we file from time to time with the Securities and Exchange Commission, including: (i) the disclosure
contained under the heading “Risk Factors” in our latest Annual Report on Form 10-K for the year ended December 31, 2015, which was filed
on February 26, 2016; (ii) the disclosure contained under the heading “Forward-Looking Statements” in our latest Quarterly Report on Form
10-Q; and (iii) our most recent earnings release filed on Form 8-K filed on July21, 2016.
Additional information regarding forward-looking statements
44Q2 2016 Corporate Overview and Financial Results 1 August 2016
“Core fee”1 income
Non-GAAP reconciliation
1) “Core fee” income is defined as fees from letters of credit, client investments, credit cards, deposit services, foreign exchange, and lending-related fees in aggregate. This
is a non-GAAP measure. For information regarding additional non-GAAP measures, please refer to our latest Forms 10-Q and 10-K, as well as our quarterly earnings
releases.
2) Q1’15 amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the second quarter of 2015 related to deconsolidation of our
investments in VC- and PE-related funds (ASU 2015-02). Amounts prior to 3/31/15 have not been revised.
2
2
Non-GAAP core fee income (dollars in thousands)
Quarter ended
Sep 30,
2013
Dec 31,
2013
Mar 31,
2014
Jun 30,
2014
Sep 30,
2014
Dec 31,
2014
GAAP noninterest income $ 257,650 $ 238,713 $ 310,225 $ 14,210 $ 80,167 $ 167,637
Less: gains (losses) on investment securities, net 187,862 163,547 223,912 (57,320) 5,644 94,787
Less: gains on derivative instruments, net 9,422 14,382 24,167 12,775 26,538 33,365
Less: other noninterest income (loss) 17,161 11,791 11,200 8,762 (5,361) (15,861)
Non-GAAP core fee income $ 43,205 $ 48,993 $ 50,946 $ 49,993 $ 53,346 $ 55,346
Non-GAAP core fee income (dollars in thousands)
Quarter ended
Mar 31,
2015
Jun 30,
2015
Sep 30,
2015
Dec 31,
2015
Mar 31,
2016
Jun 30,
2016
GAAP noninterest income $ 123,524 $ 126,287 $ 108,477 $ 114,506 $ 86,134 $ 112,776
Less: gains (losses) on investment securities, net 33,263 24,975 18,768 12,439 (4,684) 23,270
Less: gains (losses)on derivative instruments, net 39,729 16,317 10,244 17,515 (1,695) 8,798
Less: other noninterest income (loss) (7,678) 18,916 11,077 11,847 15,971 6,254
Non-GAAP core fee income $ 58,210 $ 66,079 $ 68,388 $ 72,705 $ 76,542 $ 74,454
2
45Q2 2016 Corporate Overview and Financial Results 1 August 2016
1) For information regarding additional non-GAAP measures, please refer to our latest Forms 10-Q and 10-K, as well as our quarterly earnings releases.
Non-marketable securities
Non-GAAP reconciliation1
Non-GAAP non-marketable securities, net of non-controlling interests
(dollars in thousands) Jun 30, 2016
GAAP non-marketable securities $ 664,054
Less: amounts attributable to non-controlling interests 121,803
Non-GAAP non-marketable securities, net of non-controlling interests $ 542,251
Composition of non-GAAP non-marketable securities, net of non-
controlling interests Jun 30, 2016
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments 42,210
Other venture capital investments 218
Other securities (fair value accounting) 61
Non-marketable securities (equity method accounting):
Venture capital and private equity fund investments 64,469
Debt funds 19,239
China Joint Venture Investment 78,074
Other investments 42,647
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments 117,379
Other investments 24,156
Investments in qualified affordable housing projects 153,798
Total non-marketable and other securities $ 542,251
46Q2 2016 Corporate Overview and Financial Results 1 August 2016
1) For information regarding additional non-GAAP measures, please refer to our latest Forms 10-Q and 10-K, as well as our quarterly earnings releases.
Gains (losses) on investment securities
Non-GAAP reconciliation1
Non-GAAP gains (losses) on investment securities
(dollars in thousands)
Quarter ended
Sep 30,
2013
Dec 31,
2013
Mar 31,
2014
Jun 30,
2014
Sep 30,
2014
Dec 31,
2014
GAAP net gains (losses) on investment
securities $ 187,862 $ 163,547 $ 223,912 $ (57,320) $ 5,644 $ 94,787
Less: income (losses) attributable to
noncontrolling interests, including carried
interest 151,360 137,405 186,552 (35,240) 6,757 78,225
Non-GAAP net gains (losses) on investment
securities, net of noncontrolling interests $ 36,502 $ 26,142 $ 37,360 $ (22,080) $ (1,113) $ 16,562
Non-GAAP gains (losses) on investment
securities (dollars in thousands)
Quarter ended
Mar 31,
2015
Jun 30,
2015
Sep 30,
2015
Dec 31,
2015
Mar 31,
2016
Jun 30,
2016
GAAP net gains (losses) on investment
securities $ 33,263 $ 24,975 $ 18,768 $ 12,439 $ (4,684) $ 23,270
Less: income (losses) attributable to
noncontrolling interests, including carried
interest 14,171 9,036 6,102 2,803 (2,716) 1,622
Non-GAAP net gains (losses) on investment
securities, net of noncontrolling interests $ 19,092 $ 15,939 $ 12,666 $ 9,636 $ (1,968) $ 21,648
47Q2 2016 Corporate Overview and Financial Results 1 August 2016
Non-GAAP tangible common equity and tangible
assets (dollars in thousands, except ratios)
Year ended December 31, Quarter ended
March 31, June 30,
2011 2012 2013 2 2014 2 2015 2016 2016
GAAP SVBFG stockholders’ equity $ 1,569,392 $ 1,830,555 $ 1,961,635 $ 2,813,072 $ 3,198,134 $ 3,381,044 $ 3,505,578
Less: Intangible assets 601 - - - - - -
Tangible common equity (TCE) $ 1,568,791 $ 1,830,555 $ 1,961,635 $ 2,813,072 $ 3,198,134 $ 3,381,044 $ 3,505,578
GAAP Total assets $ 19,968,894 $ 22,766,123 $ 26,412,554 $ 39,337,869 $ 44,686,703 $ 43,573,902 $ 43,132,654
Less: Intangible assets 601 - - - - - -
Tangible assets (TA) $ 19,968,293 $ 22,766,123 $ 26,412,554 $ 39,337,869 $ 44,686,703 $ 43,573,902 $ 43,132,654
Risk-weighted assets (RWA) $ 11,837,902 $ 13,532,984 $ 16,901,501 $ 21,755,091 $ 25,919,594 $ 26,382,154 $ 27,145,857
Tangible common equity to tangible assets 7.86% 8.04% 7.43% 7.15% 7.16% 7.76% 8.13%
Tangible common equity to risk-weighted assets
13.25% 13.53% 11.61% 12.93% 12.34% 12.82% 12.91%
Non-GAAP tangible common equity and tangible
assets (dollars in thousands, except ratios)
Year ended December 31, Quarter ended
March 31, June 30,
2011 2012 2013 2 2014 2 2015 2016 2016
Tangible common equity (TCE) $ 1,346,854 $ 1,591,643 $ 1,634,389 $ 2,399,411 $ 3,059,045 $ 3,246,536 $ 3,359,097
Tangible assets (TA) $ 18,758,813 $ 21,471,111 $ 24,849,484 $ 37,607,973 $ 44,045,967 $ 42,990,146 $ 42,522,293
Risk-weighted assets (RWA) $ 11,467,401 $ 13,177,887 $ 16,612,870 $ 21,450,480 $ 24,301,043 $ 24,922,140 $ 25,691,978
Tangible common equity to tangible assets 7.18% 7.41% 6.58% 6.38% 6.95% 7.55% 7.90%
Tangible common equity to risk-weighted assets 11.75% 12.08% 9.84% 11.19% 12.59% 13.03% 13.07%
1. For information regarding additional non-GAAP measures, please refer to our latest Forms 10-Q and 10-K, as well as our quarterly earnings releases.
2. Prior period amounts, except risk-weighted assets, have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of
2015 related to our investments in qualified affordable housing projects (ASU 2014-01).
Capital ratios
Consolidated (Holdco) TCE/TA and TCE/RWA1
Bank only TCE/TA and TCE/RWA1
Non-GAAP reconciliation1
48Q2 2016 Corporate Overview and Financial Results 1 August 2016
Non-interest income1
Non-GAAP reconciliation
1) For information regarding additional non-GAAP measures, please refer to our latest Forms 10-Q and 10-K, as well as our quarterly earnings releases.
2) Q1’15 amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the second quarter of 2015 related to our investments in VC-
and PE-related funds (ASU 2015 – 02 Deconsolidation). Amounts prior to 3/31/15 have not been revised.
Non-GAAP
Non-interest income, net of non-controlling interests (dollars in thousands) Year ended December 31,
2011 2012 2013 2014 2015
GAAP noninterest income 382,332 335,546 673,206 572,239 472,794
Less: income (losses) attributable to noncontrolling interests, including carried
interest 122,336 85,940 342,904 233,624 31,736
Non-GAAP noninterest income, net of noncontrolling interests 259,996 249,606 330,302 338,615 441,058
Less: gains on sales of certain available-for-sale securities 37,314 4,955 - -
Less: net gains on the sale of certain assets related to our equity management
services business - 4,243 - -
Less: net (losses) on the SVBIF sale transaction - - - (13,934)
Non-GAAP noninterest income, net of noncontrolling interests and excluding one
time adjustments 222,682 240,408 330,302 352,549 441,058
1
Non-GAAP non-interest income,
net of non-controlling interests
(dollars in thousands)
Quarter ended
Sep 30,
2013
Dec 30,
2013
Mar 31,
2014
Jun 30,
2014
Sep 30,
2014
Dec 31,
2014
Mar 31,
2015
Jun 30,
2015
Sep 30,
2015
Dec 31,
2015
Mar 31,
2016
Jun 30,
2016
GAAP non-interest income $ 267,650 $ 238,713 $ 310,225 $ 14,210 $ 80,167 $ 167,637 $ 123,524 $ 126,287 $ 108,477 $ 114,506 $ 86,134 $ 112,776
Less: income (losses) attributable
to non-controlling interests,
including carried interests 151,830 137,833 186,718 (35,325) 4,911 77,320 14,164 8,556 6,343 2,673 (2,671) 1,619
Non-GAAP non-interest income,
net of non-controlling interests 105,820 100,880 123,507 49,535 75,256 90,317 109,360 117,731 102,134 111,833 88,805 111,157
Less: net (losses) on SVBIF Sale
Transaction - - - - - (13,934) - - - - - -
Non-GAAP non-interest income,
net of noncontrolling interests and
excluding net losses on SVBIF Sale
Transaction $ 105,820 $ 100,880 $ 123,507 $ 49,535 $ 75,256 $ 104,251 $ 109,360 $ 117,731 $ 102,134 $ 111,833 $ 88,805 $ 111,157
2
49Q2 2016 Corporate Overview and Financial Results 1 August 2016
1. For information regarding additional non-GAAP measures, please refer to our latest Forms 10-Q and 10-K, as well as our quarterly earnings releases.
2. Prior period amounts have been revised to reflect the retrospective application of new accounting guidance adopted in the first quarter of 2015 related to our investments in
qualified affordable housing projects (ASU 2014-01).
Non-GAAP operating efficiency ratio, net of non-controlling interests1
Non-GAAP reconciliation
(Dollars in thousands, except ratios)
Year ended December 31, Quarter ended
Mar 31, Jun 30,
2011 2012 2013 2 2014 2 2015 2016 2016
GAAP noninterest expense $ 500,628 $ 545,998 $ 615,244 $ 707,180 $ 778,016 $ 204,033 $ 200,352
Less: amounts attributable to noncontrolling interests 11,567 11,336 12,714 18,867 828 (91) 258
Less: net gain from note repurchases and termination of
corresponding interest rate swaps (3,123) - - - - - -
Non-GAAP noninterest expense, net of noncontrolling interests $ 492,184 $ 534,662 $ 602,530 $ 688,313 $ 777,188 $ 204,124 $ 200,094
GAAP net interest income $ 526,277 $ 617,864 $ 697,344 $ 856,595 $ 1,006,425 $ 281,421 $ 283,336
Adjustments for taxable equivalent basis 1,951 1,919 1,724 1,689 1,564 322 309
Non-GAAP taxable equivalent net interest income 528,228 619,783 699,068 858,284 1,007,989 281,743 283,645
Less: income (losses) attributable to noncontrolling interests 122 106 76 33 8 3 55
Non-GAAP taxable equivalent net interest income, net of
noncontrolling interests $ 528,106 $ 619,677 $ 698,992 $ 858,251 $ 1,007,981 $ 281,740 $ 283,590
GAAP noninterest income 382,332 335,546 673,206 572,239 472,794 86,134 112,776
Non-GAAP noninterest income, net of noncontrolling interests 222,682 240,408 330,302 352,549 441,058 88,805 111,157
GAAP total revenue $ 908,609 $ 953,410 $ 1,370,550 $ 1,428,834 $ 1,479,219 $ 367,555 $ 396,112
Non-GAAP taxable equivalent revenue, net of noncontrolling
interests $ 750,788 $ 860,085 $ 1,029,294 $ 1,210,800 $ 1,449,039 $ 370,545 $ 394,747
GAAP operating efficiency ratio 55.10% 57.27% 44.89% 49.49% 52.60% 55.51% 50.58%
Non-GAAP operating efficiency ratio 65.56% 62.16% 58.54% 56.85% 53.63% 55.09% 50.69%
50Q2 2016 Corporate Overview and Financial Results 1 August 2016
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Meghan O’Leary
Director of Investor Relations
3005 Tasman Drive Santa Clara, CA 95054
T 408 654 6364 M 650 255 9934
moleary@svb.com