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 October 20, 2016, announcing the Company's financial results for the third quarter ended September 30, 2016. |
Date: October 20, 2016 | 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 October 20, 2016, announcing the Company's financial results for the third quarter ended September 30, 2016. |
* | 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 | |||||||
October 20, 2016 | ||||||||
NASDAQ: SIVB |
• | Average loan balances of $18.6 billion, an increase of $0.4 billion (or 2.5 percent). |
• | Average investment securities, excluding non-marketable and other securities, of $20.7 billion, a decrease of $1.0 billion (or 4.7 percent). |
• | Average total client funds (consisting of both on-balance sheet deposits and off-balance sheet client investment funds) remained flat at $81.0 billion, with average on-balance sheet deposits decreasing by $250 million (or 0.7 percent), offset by average off-balance sheet client investment funds increasing by $222 million (or 0.5 percent). |
• | Net interest income (fully taxable equivalent basis) of $289.4 million, an increase of $5.8 million (or 2.0 percent). |
• | Net interest margin of 2.75 percent, an increase of 2 basis points. |
• | Provision for loan losses of $19.0 million, compared to $36.3 million. |
• | Gains on investment securities of $23.2 million, compared to $23.3 million. Non-GAAP gains on investment securities, net of noncontrolling interests, were $18.4 million, compared to $21.6 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures”.) |
• | Gains on equity warrant assets of $21.6 million, compared to $5.1 million. |
• | Noninterest income of $144.1 million, an increase of $31.4 million (or 27.8 percent). Non-GAAP core fee income increased $6.0 million (or 8.2 percent) to $80.5 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures”.) |
• | Noninterest expense of $221.8 million, an increase of $21.5 million (or 10.7 percent). |
(Dollars in millions, except share data, employees and ratios) | Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||||||||||
Income statement: | ||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 2.12 | $ | 1.78 | $ | 1.52 | $ | 1.68 | $ | 1.57 | $ | 5.42 | $ | 4.94 | ||||||||||||||
Net income available to common stockholders | 111.1 | 93.0 | 79.2 | 87.5 | 81.7 | 283.2 | 256.4 | |||||||||||||||||||||
Net interest income | 289.2 | 283.3 | 281.4 | 269.1 | 254.7 | 853.9 | 737.4 | |||||||||||||||||||||
Provision for loan losses | 19.0 | 36.3 | 33.3 | 31.3 | 33.4 | 88.6 | 66.4 | |||||||||||||||||||||
Noninterest income | 144.1 | 112.8 | 86.1 | 114.5 | 108.5 | 343.1 | 358.3 | |||||||||||||||||||||
Noninterest expense | 221.8 | 200.4 | 204.0 | 208.6 | 184.8 | 626.2 | 569.4 | |||||||||||||||||||||
Non-GAAP core fee income (1) | 80.5 | 74.5 | 76.5 | 72.7 | 68.4 | 231.5 | 192.7 | |||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (1) | 139.5 | 111.2 | 88.8 | 111.8 | 102.1 | 339.4 | 329.2 | |||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests (1) | 221.7 | 200.1 | 204.1 | 208.4 | 184.6 | 625.9 | 568.8 | |||||||||||||||||||||
Fully taxable equivalent: | ||||||||||||||||||||||||||||
Net interest income (2) | $ | 289.4 | $ | 283.6 | $ | 281.7 | $ | 269.4 | $ | 255.0 | $ | 854.8 | $ | 738.6 | ||||||||||||||
Net interest margin | 2.75 | % | 2.73 | % | 2.67 | % | 2.54 | % | 2.50 | % | 2.72 | % | 2.57 | % | ||||||||||||||
Balance sheet: | ||||||||||||||||||||||||||||
Average total assets | $ | 43,451.3 | $ | 43,370.0 | $ | 44,190.2 | $ | 43,634.8 | $ | 42,014.2 | $ | 43,669.7 | $ | 39,911.5 | ||||||||||||||
Average loans, net of unearned income | 18,647.2 | 18,199.3 | 17,012.4 | 15,745.6 | 14,916.7 | 17,955.5 | 14,431.8 | |||||||||||||||||||||
Average available-for-sale securities | 12,743.7 | 13,399.3 | 14,692.6 | 15,314.8 | 15,035.1 | 13,608.7 | 14,140.0 | |||||||||||||||||||||
Average held-to-maturity securities | 8,003.8 | 8,382.8 | 8,658.7 | 8,220.5 | 7,879.0 | 8,347.2 | 7,697.3 | |||||||||||||||||||||
Average noninterest-bearing demand deposits | 30,522.3 | 30,342.4 | 31,219.5 | 30,531.1 | 28,791.7 | 30,694.1 | 26,909.4 | |||||||||||||||||||||
Average interest-bearing deposits | 7,387.4 | 7,817.5 | 8,048.6 | 8,373.6 | 8,591.3 | 7,749.9 | 8,503.9 | |||||||||||||||||||||
Average total deposits | 37,909.8 | 38,160.0 | 39,268.1 | 38,904.7 | 37,383.1 | 38,444.0 | 35,413.4 | |||||||||||||||||||||
Average long-term debt | 796.2 | 796.5 | 796.7 | 797.1 | 797.3 | 796.4 | 766.9 | |||||||||||||||||||||
Period-end total assets | 43,274.0 | 43,132.7 | 43,573.9 | 44,686.7 | 41,731.0 | 43,274.0 | 41,731.0 | |||||||||||||||||||||
Period-end loans, net of unearned income | 19,112.3 | 18,833.8 | 17,735.1 | 16,742.1 | 15,314.6 | 19,112.3 | 15,314.6 | |||||||||||||||||||||
Period-end available-for-sale securities | 12,665.7 | 13,058.6 | 14,327.1 | 16,380.7 | 15,307.7 | 12,665.7 | 15,307.7 | |||||||||||||||||||||
Period-end held-to-maturity securities | 7,791.9 | 8,200.4 | 8,548.2 | 8,791.0 | 8,306.5 | 7,791.9 | 8,306.5 | |||||||||||||||||||||
Period-end non-marketable and other securities | 625.2 | 664.1 | 668.5 | 674.9 | 650.6 | 625.2 | 650.6 | |||||||||||||||||||||
Period-end noninterest-bearing demand deposits | 31,029.0 | 30,287.8 | 30,933.3 | 30,867.5 | 28,659.0 | 31,029.0 | 28,659.0 | |||||||||||||||||||||
Period-end interest-bearing deposits | 7,160.4 | 7,308.7 | 7,826.5 | 8,275.3 | 8,390.5 | 7,160.4 | 8,390.5 | |||||||||||||||||||||
Period-end total deposits | 38,189.4 | 37,596.6 | 38,759.7 | 39,142.8 | 37,049.4 | 38,189.4 | 37,049.4 | |||||||||||||||||||||
Off-balance sheet: | ||||||||||||||||||||||||||||
Average client investment funds | $ | 43,105.5 | $ | 42,883.3 | $ | 42,471.6 | $ | 43,436.2 | $ | 41,972.9 | $ | 42,820.1 | $ | 37,822.5 | ||||||||||||||
Period-end client investment funds | 43,343.7 | 43,072.4 | 42,273.5 | 43,991.7 | 43,566.7 | 43,343.7 | 43,566.7 | |||||||||||||||||||||
Total unfunded credit commitments | 16,297.1 | 15,502.5 | 15,880.2 | 15,614.4 | 16,087.3 | 16,297.1 | 16,087.3 | |||||||||||||||||||||
Earnings ratios: | ||||||||||||||||||||||||||||
Return on average assets (annualized) (3) | 1.02 | % | 0.86 | % | 0.72 | % | 0.80 | % | 0.77 | % | 0.87 | % | 0.86 | % | ||||||||||||||
Return on average SVBFG stockholders’ equity (annualized) (4) | 12.32 | 10.83 | 9.59 | 10.74 | 10.35 | 10.95 | 11.34 | |||||||||||||||||||||
Asset quality ratios: | ||||||||||||||||||||||||||||
Allowance for loan losses as a % of total gross loans | 1.25 | % | 1.29 | % | 1.29 | % | 1.29 | % | 1.28 | % | 1.25 | % | 1.28 | % | ||||||||||||||
Allowance for loan losses for performing loans as a % of total gross performing loans | 1.03 | 0.98 | 1.01 | 0.99 | 0.99 | 1.03 | 0.99 | |||||||||||||||||||||
Gross charge-offs as a % of average total gross loans (annualized) | 0.52 | 0.45 | 0.61 | 0.29 | 0.77 | 0.53 | 0.36 | |||||||||||||||||||||
Net charge-offs as a % of average total gross loans (annualized) | 0.48 | 0.43 | 0.49 | 0.28 | 0.75 | 0.47 | 0.31 | |||||||||||||||||||||
Other ratios: | ||||||||||||||||||||||||||||
GAAP operating efficiency ratio (5) | 51.19 | % | 50.58 | % | 55.51 | % | 54.39 | % | 50.88 | % | 52.32 | % | 51.97 | % | ||||||||||||||
Non-GAAP operating efficiency ratio (1) | 51.69 | 50.69 | 55.09 | 54.67 | 51.69 | 52.41 | 53.27 | |||||||||||||||||||||
SVBFG CET 1 risk-based capital ratio | 12.75 | 12.43 | 12.38 | 12.28 | 12.48 | 12.75 | 12.48 | |||||||||||||||||||||
Bank CET 1 risk-based capital ratio | 12.77 | 12.57 | 12.57 | 12.52 | 12.79 | 12.77 | 12.79 | |||||||||||||||||||||
SVBFG total risk-based capital ratio | 14.22 | 13.92 | 13.90 | 13.84 | 14.05 | 14.22 | 14.05 | |||||||||||||||||||||
Bank total risk-based capital ratio | 13.83 | 13.65 | 13.66 | 13.60 | 13.85 | 13.83 | 13.85 | |||||||||||||||||||||
SVBFG tier 1 leverage ratio | 8.35 | 8.08 | 7.69 | 7.63 | 7.67 | 8.35 | 7.67 | |||||||||||||||||||||
Bank tier 1 leverage ratio | 7.74 | 7.56 | 7.19 | 7.09 | 7.13 | 7.74 | 7.13 | |||||||||||||||||||||
Period-end loans, net of unearned income, to deposits ratio | 50.05 | 50.09 | 45.76 | 42.77 | 41.34 | 50.05 | 41.34 | |||||||||||||||||||||
Average loans, net of unearned income, to average deposits ratio | 49.19 | 47.69 | 43.32 | 40.47 | 39.90 | 46.71 | 40.75 |
Book value per common share (6) | $ | 69.02 | $ | 67.38 | $ | 65.40 | $ | 61.97 | $ | 61.66 | $ | 69.02 | $ | 61.66 | ||||||||||||||
Other statistics: | ||||||||||||||||||||||||||||
Average full-time equivalent employees | 2,255 | 2,182 | 2,160 | 2,073 | 2,030 | 2,199 | 1,981 | |||||||||||||||||||||
Period-end full-time equivalent employees | 2,280 | 2,188 | 2,170 | 2,089 | 2,054 | 2,280 | 2,054 |
(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 $0.3 million for the quarters ended September 30, 2016, June 30, 2016, March 31, 2016 and $0.4 million for the quarters ended December 31, 2015 and September 30, 2015. The taxable equivalent adjustments were $0.9 million and $1.2 million for the nine months ended September 30, 2016 and 2015, respectively. |
(3) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and year-to-date average assets. |
(4) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and year-to-date average SVBFG stockholders’ equity. |
(5) | Ratio is calculated by dividing noninterest expense by total net interest income plus noninterest income. |
(6) | Book value per common share is calculated by dividing total SVBFG stockholders’ equity by total outstanding common shares. |
Q3'16 compared to Q2'16 | ||||||||||||
Increase (decrease) due to change in | ||||||||||||
(Dollars in thousands) | Volume | Rate | Total | |||||||||
Interest income: | ||||||||||||
Short-term investment securities | $ | 569 | $ | 100 | $ | 669 | ||||||
AFS / HTM fixed income investment securities | (4,011 | ) | 795 | (3,216 | ) | |||||||
Loans | 6,883 | 2,057 | 8,940 | |||||||||
Increase in interest income, net | 3,441 | 2,952 | 6,393 | |||||||||
Interest expense: | ||||||||||||
Deposits | (84 | ) | 358 | 274 | ||||||||
Short-term borrowings | 276 | 27 | 303 | |||||||||
Long-term debt | 1 | 18 | 19 | |||||||||
Increase in interest expense, net | 193 | 403 | 596 | |||||||||
Increase in net interest income | $ | 3,248 | $ | 2,549 | $ | 5,797 |
• | An increase in interest income from loans of $8.9 million to $214.2 million for the third quarter of 2016. The increase was primarily related to a $448 million increase in average loan balances and $3.8 million of increased fee income from loan prepayments as well as $2.3 million from one additional day in the third quarter of 2016 (compared to the second quarter of 2016). Loan fee yields increased seven basis points reflective primarily of higher income from loan prepayments during the third quarter, partially offset by a four basis point decrease in gross yields, due primarily to growth in lower-yielding private equity/venture capital and Private Bank loan portfolios. |
• | A decrease in interest income from our fixed income investment securities in our available-for-sale ("AFS") and held-to-maturity ("HTM") portfolios of $3.2 million to $84.3 million for the third quarter of 2016. The decrease was primarily due to lower average balances as a result of our second quarter sale of $1.0 billion of fixed income investment securities and our use of fixed income portfolio cash flows in the second and third quarters to fund loans and repay short-term borrowings. Utilization of our fixed income investment portfolio to fund loan growth and repay short-term borrowings was reflective of the slowdown in deposit growth during the first half of 2016. Our overall yields from investment securities remained flat at 1.62 percent, consisting of a decrease |
Three months ended | Nine months ended | |||||||||||||||||||
(Dollars in thousands, except ratios) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Allowance for loan losses, beginning balance | $ | 244,723 | $ | 230,249 | $ | 192,644 | $ | 217,613 | $ | 165,359 | ||||||||||
Provision for loan losses | 18,950 | 36,333 | 33,403 | 88,624 | 66,368 | |||||||||||||||
Gross loan charge-offs | (24,616 | ) | (20,676 | ) | (29,118 | ) | (71,466 | ) | (39,339 | ) | ||||||||||
Loan recoveries | 2,084 | 1,261 | 662 | 8,158 | 5,289 | |||||||||||||||
Foreign currency translation adjustments (1) | (576 | ) | (2,444 | ) | (84 | ) | (2,364 | ) | (170 | ) | ||||||||||
Allowance for loan losses, ending balance | $ | 240,565 | $ | 244,723 | $ | 197,507 | $ | 240,565 | $ | 197,507 | ||||||||||
Provision for loan losses as a percentage of period-end total gross loans (annualized) | 0.39 | % | 0.77 | % | 0.86 | % | 0.62 | % | 0.58 | % | ||||||||||
Gross loan charge-offs as a percentage of average total gross loans (annualized) | 0.52 | 0.45 | 0.77 | 0.53 | 0.36 | |||||||||||||||
Net loan charge-offs as a percentage of average total gross loans (annualized) | 0.48 | 0.43 | 0.75 | 0.47 | 0.31 | |||||||||||||||
Allowance for loan losses as a percentage of period-end total gross loans | 1.25 | 1.29 | 1.28 | 1.25 | 1.28 | |||||||||||||||
Period-end total gross loans | $ | 19,228,928 | $ | 18,949,902 | $ | 15,429,941 | $ | 19,228,928 | $ | 15,429,941 | ||||||||||
Average total gross loans | 18,762,144 | 18,310,189 | 15,026,206 | 18,067,893 | 14,537,874 | |||||||||||||||
Allowance for loan losses for nonaccrual loans | 44,348 | 59,856 | 46,256 | 44,348 | 46,256 | |||||||||||||||
Nonaccrual loans | 106,216 | 124,319 | 115,461 | 106,216 | 115,461 |
(1) | Reflects foreign currency translation adjustments within the allowance for loan losses. For periods prior to June 30, 2016, amounts were previously reported with loan recoveries and have been revised to conform to current period presentation. |
• | Gains on investment securities of $23.2 million for the third quarter of 2016, compared to $23.3 million for the second quarter of 2016. Net of noncontrolling interests, non-GAAP net gains on investment securities were $18.4 million for the third quarter of 2016 compared to $21.6 million for the second quarter of 2016. The non- |
◦ | Gains of $13.7 million from our strategic and other investments, comprised of gains of $7.2 million from valuation increases for one of our equity method fund investments as well as higher distributions from our strategic venture capital fund investments, and |
◦ | Gains of $4.3 million from our managed funds of funds, related primarily to net unrealized valuation increases due to M&A and IPO activity of investments held by the funds in the portfolio. |
Three months ended September 30, 2016 | ||||||||||||||||||||||||
(Dollars in thousands) | Managed Funds Of Funds | Managed Direct Venture Funds | Debt Funds | Available- For-Sale Securities | Strategic and Other Investments | Total | ||||||||||||||||||
GAAP gains (losses) on investment securities, net | $ | 8,931 | $ | 390 | $ | 166 | $ | (15 | ) | $ | 13,706 | $ | 23,178 | |||||||||||
Less: income attributable to noncontrolling interests, including carried interest | 4,615 | 130 | — | — | — | 4,745 | ||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 4,316 | $ | 260 | $ | 166 | $ | (15 | ) | $ | 13,706 | $ | 18,433 | |||||||||||
Three months ended June 30, 2016 | ||||||||||||||||||||||||
(Dollars in thousands) | Managed Funds Of Funds | Managed Direct Venture Funds | Debt Funds | Available- For-Sale Securities | Strategic and Other Investments | Total | ||||||||||||||||||
GAAP gains (losses) on investment securities, net | $ | 3,380 | $ | (167 | ) | $ | (220 | ) | $ | 12,328 | $ | 7,949 | $ | 23,270 | ||||||||||
Less: gains (losses) attributable to noncontrolling interests, including carried interest | 1,640 | (18 | ) | — | — | — | 1,622 | |||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 1,740 | $ | (149 | ) | $ | (220 | ) | $ | 12,328 | $ | 7,949 | $ | 21,648 |
• | Net gains on derivative instruments were $19.7 million for the third quarter of 2016, compared to $8.8 million for the second quarter of 2016. The following table provides a summary of our net gains on derivative instruments: |
Three months ended | Nine months ended | |||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Net gains on equity warrant assets | $ | 21,558 | $ | 5,089 | $ | 10,685 | $ | 33,252 | $ | 54,579 | ||||||||||
(Losses) gains on foreign exchange forward contracts, net: | ||||||||||||||||||||
(Losses) gains on client foreign exchange forward contracts, net | (3,194 | ) | 68 | 179 | (8,780 | ) | 459 | |||||||||||||
Gains (losses) on internal foreign exchange forward contracts, net | 1,352 | 3,923 | (218 | ) | 3,067 | 11,626 | ||||||||||||||
Total (losses) gains on foreign exchange forward contracts, net (1) | (1,842 | ) | 3,991 | (39 | ) | (5,713 | ) | 12,085 | ||||||||||||
Net gains (losses) on other derivatives (2) | 28 | (282 | ) | (402 | ) | (692 | ) | (374 | ) | |||||||||||
Total gains on derivative instruments, net | $ | 19,744 | $ | 8,798 | $ | 10,244 | $ | 26,847 | $ | 66,290 |
(1) | Represents the change in the fair value of foreign exchange forward contracts used to economically reduce our foreign exchange exposure related to certain foreign currency denominated instruments and forward contracts executed on behalf of clients. The changes in the fair value of foreign exchange forward contracts are offset by the revaluation of foreign currency denominated instruments which are included in the line item "Other" within noninterest income. |
(2) | Represents primarily the change in the fair value of our client interest rate derivatives and our interest rate swaps. |
◦ | Net gains of $19.7 million on derivative instruments for the third quarter of 2016 were attributable primarily to the following: |
• | Net gains on equity warrant assets of $21.6 million, reflective of the following: |
◦ | Net gains of $16.8 million from changes in warrant valuations in the third quarter of 2016 compared to net gains of $7.3 million for the second quarter of 2016, primarily reflective of an increase in the valuation of one public company as well as warrant valuation gains in our private company warrant portfolio. |
◦ | Net gains of $5.9 million from exercises of equity warrant assets during the quarter, compared to net losses of $1.5 million for the second quarter of 2016, primarily reflective of increased IPO and M&A activity in the portfolio. |
• | Net losses of $3.2 million on client foreign exchange forward contracts for the third quarter of 2016, compared to net gains of $0.1 million for the second quarter of 2016. The net losses of $3.2 million were offset by net gains of $3.5 million from the revaluation of foreign currency denominated cash that are included in the line item "Other" within noninterest income. |
• | Net gains of $1.4 million on internal foreign exchange forward contracts used to economically reduce our foreign exchange exposure to foreign currency denominated instruments for the third quarter of 2016, compared to net gains of $3.9 million for the second quarter of 2016. The net gains of $1.4 million were driven by the continued strengthening of the U.S. dollar against various foreign currencies during the third quarter of 2016 and were offset by net losses of $1.4 million from the revaluation of foreign currency denominated instruments that are included in the line item "Other" within noninterest income. |
Three months ended | Nine months ended | |||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Non-GAAP core fee income: | ||||||||||||||||||||
Foreign exchange fees | $ | 25,944 | $ | 24,088 | $ | 22,995 | $ | 76,998 | $ | 63,037 | ||||||||||
Credit card fees | 18,295 | 15,424 | 14,536 | 49,226 | 40,841 | |||||||||||||||
Deposit service charges | 13,356 | 13,114 | 12,272 | 39,142 | 34,309 | |||||||||||||||
Client investment fees | 7,952 | 8,012 | 5,683 | 23,959 | 15,429 | |||||||||||||||
Lending related fees | 8,168 | 7,802 | 7,561 | 23,783 | 23,746 | |||||||||||||||
Letters of credit and standby letters of credit fees | 6,811 | 6,014 | 5,341 | 18,414 | 15,315 | |||||||||||||||
Total Non-GAAP core fee income | $ | 80,526 | $ | 74,454 | $ | 68,388 | $ | 231,522 | $ | 192,677 |
Three months ended | Nine months ended | |||||||||||||||||||
(Dollars in thousands, except employees) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Compensation and benefits: | ||||||||||||||||||||
Salaries and wages | $ | 62,636 | $ | 60,353 | $ | 55,383 | $ | 182,375 | $ | 158,456 | ||||||||||
Incentive compensation plans | 36,874 | 22,644 | 23,789 | 84,484 | 87,399 | |||||||||||||||
Employee stock ownership plan ("ESOP") | 1,381 | (365 | ) | 1,660 | 2,678 | 6,462 | ||||||||||||||
Other employee incentives and benefits (1) | 35,677 | 32,948 | 28,513 | 104,873 | 97,713 | |||||||||||||||
Total compensation and benefits | $ | 136,568 | $ | 115,580 | $ | 109,345 | $ | 374,410 | $ | 350,030 | ||||||||||
Period-end full-time equivalent employees | 2,280 | 2,188 | 2,054 | 2,280 | 2,054 | |||||||||||||||
Average full-time equivalent employees | 2,255 | 2,182 | 2,030 | 2,199 | 1,981 |
(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 $16.0 million in expense related to incentive compensation plans and ESOP, which reflects our current expectations for our internal performance targets for the full year of 2016, and represents the cumulative amount on a year-to-date basis, |
• | An increase of $2.7 million in total other employee incentives and benefits, primarily related to increased market valuations in the underlying investment securities associated with our deferred compensation plan and increased warrant incentive compensation expenses attributable to large gains from two warrants, and |
• | An increase of $2.3 million in salaries and wages primarily due to an increase in the number of average full-time equivalent employees ("FTE") by 73 to 2,255 FTEs for the third quarter of 2016. |
Three months ended | Nine months ended | |||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Net interest income (1) | $ | (4 | ) | $ | (55 | ) | $ | (2 | ) | $ | (62 | ) | $ | (6 | ) | |||||
Noninterest income (1) | (3,721 | ) | (1,176 | ) | (4,608 | ) | (1,144 | ) | (26,043 | ) | ||||||||||
Noninterest expense (1) | 117 | 258 | 116 | 284 | 650 | |||||||||||||||
Carried interest allocation (2) | (958 | ) | (443 | ) | (1,735 | ) | (2,483 | ) | (3,020 | ) | ||||||||||
Net income attributable to noncontrolling interests | $ | (4,566 | ) | $ | (1,416 | ) | $ | (6,229 | ) | $ | (3,405 | ) | $ | (28,419 | ) |
(1) | Represents noncontrolling interests’ share in net interest income, noninterest income and noninterest expense. |
(2) | Represents the preferred allocation of income (or change in income) earned by us as the general partner of certain consolidated funds. |
Current full year 2016 outlook compared to 2015 results (as of October 20, 2016) | Change in outlook compared to outlook reported as of July 21, 2016 | |
Average loan balances | Increase at a percentage rate in the mid-twenties | No change from previous outlook |
Average deposit balances | Increase at a percentage rate in the mid-single digits | No change from previous outlook |
Net interest income (1) | Increase at a percentage rate in the mid-teens | No change from previous outlook |
Net interest margin (1) | Between 2.60% and 2.80% | No change from previous outlook |
Allowance for loan losses for total gross performing loans as a percentage of total gross performing loans | Comparable to 2015 levels | No change from previous outlook |
Net loan charge-offs | Between 0.30% and 0.50% of average total gross loans | No change from previous outlook |
Nonperforming loans as a percentage of total gross loans | Between 0.40% and 0.60% of total gross loans | Outlook decreased from between 0.60% and 1.00% of total gross loans |
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 high teens | Outlook decreased from a percentage rate in the low twenties |
Noninterest expense (excluding expenses related to noncontrolling interests) (3) (4) | Increase at a percentage rate in the high single digits | No change from previous outlook |
(1) | Our outlook for net interest income and net interest margin is based primarily on management's current forecast of average deposit and loan balances and deployment of surplus cash into investment securities. Such forecasts are subject to change, and actual results may differ, based on market conditions, actual prepayment rates and other factors described under the section "Forward-Looking Statements" below. |
(2) | Core fee income is a non-GAAP measure, which represents noninterest income, but 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 |
(3) | Noninterest expense (excluding expenses related to noncontrolling interests) is a non-GAAP measure, which represents noninterest expense, but excludes expenses attributable to noncontrolling interests. As we are unable to quantify such line items that would be required to be included in the comparable GAAP financial measure for the future period presented without unreasonable efforts, no reconciliation for the outlook of non-GAAP noninterest expense (excluding expenses related to noncontrolling interests) to GAAP noninterest expense for 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. See "Use of Non-GAAP Financial Measures" at the end of this release for further information regarding the calculation and limitations of this measure. |
(4) | 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. |
• | deterioration, weaker than expected improvement, or other changes in the state of the economy or the markets in which we conduct business or are served by us (including the levels of IPO and M&A activities); |
• | changes in the volume and credit quality of our loans; |
• | the impact of changes in interest rates or market levels or factors affecting or affected by them, especially on our loan and investment portfolios; |
• | changes in our deposit levels; |
• | changes in the performance or equity valuations of funds or companies in which we have invested or hold derivative instruments or equity warrant assets; |
• | variations from our expectations as to factors impacting our cost structure; |
• | changes in our assessment of the creditworthiness or liquidity of our clients or unanticipated effects of credit concentration risks which create or exacerbate deterioration of such creditworthiness or liquidity; |
• | accounting changes, as required by GAAP; and |
• | regulatory or legal changes or their impact on us, including the impact of the Volcker Rule. |
Three months ended | Nine months ended | |||||||||||||||||||
(Dollars in thousands, except share data) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 214,227 | $ | 205,287 | $ | 174,993 | $ | 617,456 | $ | 507,746 | ||||||||||
Investment securities: | ||||||||||||||||||||
Taxable | 83,468 | 86,603 | 87,609 | 261,121 | 253,496 | |||||||||||||||
Non-taxable | 522 | 575 | 707 | 1,693 | 2,220 | |||||||||||||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | 2,196 | 1,527 | 1,482 | 5,793 | 4,071 | |||||||||||||||
Total interest income | 300,413 | 293,992 | 264,791 | 886,063 | 767,533 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 1,535 | 1,261 | 1,158 | 3,984 | 4,283 | |||||||||||||||
Borrowings | 9,717 | 9,395 | 8,973 | 28,161 | 25,894 | |||||||||||||||
Total interest expense | 11,252 | 10,656 | 10,131 | 32,145 | 30,177 | |||||||||||||||
Net interest income | 289,161 | 283,336 | 254,660 | 853,918 | 737,356 | |||||||||||||||
Provision for loan losses | 18,950 | 36,333 | 33,403 | 88,624 | 66,368 | |||||||||||||||
Net interest income after provision for loan losses | 270,211 | 247,003 | 221,257 | 765,294 | 670,988 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Gains on investment securities, net | 23,178 | 23,270 | 18,768 | 41,764 | 77,006 | |||||||||||||||
Gains on derivative instruments, net | 19,744 | 8,798 | 10,244 | 26,847 | 66,290 | |||||||||||||||
Foreign exchange fees | 25,944 | 24,088 | 22,995 | 76,998 | 63,037 | |||||||||||||||
Credit card fees | 18,295 | 15,424 | 14,536 | 49,226 | 40,841 | |||||||||||||||
Deposit service charges | 13,356 | 13,114 | 12,272 | 39,142 | 34,309 | |||||||||||||||
Client investment fees | 7,952 | 8,012 | 5,683 | 23,959 | 15,429 | |||||||||||||||
Lending related fees | 8,168 | 7,802 | 7,561 | 23,783 | 23,746 | |||||||||||||||
Letters of credit and standby letters of credit fees | 6,811 | 6,014 | 5,341 | 18,414 | 15,315 | |||||||||||||||
Other | 20,692 | 6,254 | 11,077 | 42,917 | 22,315 | |||||||||||||||
Total noninterest income | 144,140 | 112,776 | 108,477 | 343,050 | 358,288 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Compensation and benefits | 136,568 | 115,580 | 109,345 | 374,410 | 350,030 | |||||||||||||||
Professional services | 23,443 | 25,516 | 21,137 | 67,959 | 58,834 | |||||||||||||||
Premises and equipment | 16,291 | 16,586 | 12,356 | 47,861 | 36,800 | |||||||||||||||
Business development and travel | 8,504 | 9,327 | 8,028 | 30,077 | 28,904 | |||||||||||||||
Net occupancy | 9,525 | 9,359 | 8,548 | 28,919 | 24,010 | |||||||||||||||
FDIC and state assessments | 7,805 | 6,892 | 6,954 | 21,624 | 18,705 | |||||||||||||||
Correspondent bank fees | 3,104 | 2,713 | 3,070 | 9,469 | 9,775 | |||||||||||||||
Provision for unfunded credit commitments | 1,054 | 413 | 1,047 | 1,601 | 249 | |||||||||||||||
Other | 15,533 | 13,966 | 14,270 | 44,292 | 42,101 | |||||||||||||||
Total noninterest expense | 221,827 | 200,352 | 184,755 | 626,212 | 569,408 | |||||||||||||||
Income before income tax expense | 192,524 | 159,427 | 144,979 | 482,132 | 459,868 | |||||||||||||||
Income tax expense | 76,877 | 65,047 | 57,017 | 195,508 | 175,057 | |||||||||||||||
Net income before noncontrolling interests | 115,647 | 94,380 | 87,962 | 286,624 | 284,811 | |||||||||||||||
Net income attributable to noncontrolling interests | (4,566 | ) | (1,416 | ) | (6,229 | ) | (3,405 | ) | (28,419 | ) | ||||||||||
Net income available to common stockholders | $ | 111,081 | $ | 92,964 | $ | 81,733 | $ | 283,219 | $ | 256,392 | ||||||||||
Earnings per common share—basic | $ | 2.13 | $ | 1.79 | $ | 1.59 | $ | 5.46 | $ | 5.00 | ||||||||||
Earnings per common share—diluted | 2.12 | 1.78 | 1.57 | 5.42 | 4.94 | |||||||||||||||
Weighted average common shares outstanding—basic | 52,046,199 | 51,830,823 | 51,479,026 | 51,841,865 | 51,253,758 | |||||||||||||||
Weighted average common shares outstanding—diluted | 52,413,104 | 52,187,201 | 52,048,331 | 52,229,173 | 51,878,170 |
(Dollars in thousands, except par value and share data) | September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 2,521,319 | $ | 1,854,457 | $ | 1,674,145 | ||||||
Available-for-sale securities, at fair value (cost $12,514,893, $12,853,624, and $15,167,233, respectively) | 12,665,697 | 13,058,617 | 15,307,661 | |||||||||
Held-to-maturity securities, at cost (fair value $7,885,333, $8,322,048, and $8,367,003, respectively) | 7,791,949 | 8,200,443 | 8,306,526 | |||||||||
Non-marketable and other securities | 625,178 | 664,054 | 650,555 | |||||||||
Investment securities | 21,082,824 | 21,923,114 | 24,264,742 | |||||||||
Loans, net of unearned income | 19,112,265 | 18,833,778 | 15,314,580 | |||||||||
Allowance for loan losses | (240,565 | ) | (244,723 | ) | (197,507 | ) | ||||||
Net loans | 18,871,700 | 18,589,055 | 15,117,073 | |||||||||
Premises and equipment, net of accumulated depreciation and amortization | 115,014 | 110,485 | 94,652 | |||||||||
Accrued interest receivable and other assets | 683,180 | 655,543 | 580,370 | |||||||||
Total assets | $ | 43,274,037 | $ | 43,132,654 | $ | 41,730,982 | ||||||
Liabilities and total equity: | ||||||||||||
Liabilities: | ||||||||||||
Noninterest-bearing demand deposits | $ | 31,028,974 | $ | 30,287,849 | $ | 28,658,963 | ||||||
Interest-bearing deposits | 7,160,442 | 7,308,718 | 8,390,454 | |||||||||
Total deposits | 38,189,416 | 37,596,567 | 37,049,417 | |||||||||
Short-term borrowings | 2,421 | 503,219 | 3,756 | |||||||||
Other liabilities | 562,912 | 602,746 | 566,370 | |||||||||
Long-term debt | 795,971 | 796,329 | 797,211 | |||||||||
Total liabilities | 39,550,720 | 39,498,861 | 38,416,754 | |||||||||
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; 52,061,435 shares, 52,025,673 shares, and 51,488,985 shares outstanding, respectively | 52 | 52 | 51 | |||||||||
Additional paid-in capital | 1,219,555 | 1,209,821 | 1,171,649 | |||||||||
Retained earnings | 2,276,865 | 2,165,784 | 1,906,135 | |||||||||
Accumulated other comprehensive income | 96,579 | 129,921 | 97,064 | |||||||||
Total SVBFG stockholders’ equity | 3,593,051 | 3,505,578 | 3,174,899 | |||||||||
Noncontrolling interests | 130,266 | 128,215 | 139,329 | |||||||||
Total equity | 3,723,317 | 3,633,793 | 3,314,228 | |||||||||
Total liabilities and total equity | $ | 43,274,037 | $ | 43,132,654 | $ | 41,730,982 |
Three months ended | |||||||||||||||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||||||||||||||||||||||||
(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) | $ | 2,404,006 | $ | 2,196 | 0.36 | % | $ | 1,796,679 | $ | 1,527 | 0.34 | % | $ | 2,618,582 | $ | 1,482 | 0.22 | % | |||||||||||||||
Investment securities: (2) | |||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||
Taxable | 12,743,715 | 44,741 | 1.40 | 13,399,323 | 46,108 | 1.38 | 15,035,114 | 49,027 | 1.29 | ||||||||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||||||
Taxable | 7,947,983 | 38,727 | 1.94 | 8,321,790 | 40,495 | 1.96 | 7,803,045 | 38,582 | 1.96 | ||||||||||||||||||||||||
Non-taxable (3) | 55,842 | 803 | 5.72 | 61,045 | 884 | 5.82 | 75,918 | 1,087 | 5.68 | ||||||||||||||||||||||||
Total loans, net of unearned income (4) (5) | 18,647,194 | 214,227 | 4.57 | 18,199,259 | 205,287 | 4.54 | 14,916,652 | 174,993 | 4.65 | ||||||||||||||||||||||||
Total interest-earning assets | 41,798,740 | 300,694 | 2.86 | 41,778,096 | 294,301 | 2.83 | 40,449,311 | 265,171 | 2.60 | ||||||||||||||||||||||||
Cash and due from banks | 317,044 | 259,054 | 349,072 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (247,657 | ) | (239,727 | ) | (200,683 | ) | |||||||||||||||||||||||||||
Other assets (6) | 1,583,202 | 1,572,607 | 1,416,520 | ||||||||||||||||||||||||||||||
Total assets | $ | 43,451,329 | $ | 43,370,030 | $ | 42,014,220 | |||||||||||||||||||||||||||
Funding sources: | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 308,345 | $ | 60 | 0.08 | % | $ | 309,733 | $ | 60 | 0.08 | % | $ | 276,221 | $ | 55 | 0.08 | % | |||||||||||||||
Money market deposits | 5,592,603 | 1,316 | 0.09 | 5,975,948 | 1,035 | 0.07 | 6,090,936 | 866 | 0.06 | ||||||||||||||||||||||||
Money market deposits in foreign offices | 199,539 | 20 | 0.04 | 128,565 | 15 | 0.05 | 192,859 | 20 | 0.04 | ||||||||||||||||||||||||
Time deposits | 50,351 | 12 | 0.09 | 59,485 | 16 | 0.11 | 68,875 | 28 | 0.16 | ||||||||||||||||||||||||
Sweep deposits in foreign offices | 1,236,602 | 127 | 0.04 | 1,343,803 | 135 | 0.04 | 1,962,448 | 189 | 0.04 | ||||||||||||||||||||||||
Total interest-bearing deposits | 7,387,440 | 1,535 | 0.08 | 7,817,534 | 1,261 | 0.06 | 8,591,339 | 1,158 | 0.05 | ||||||||||||||||||||||||
Short-term borrowings | 513,446 | 663 | 0.51 | 302,527 | 360 | 0.48 | 6,956 | 3 | 0.17 | ||||||||||||||||||||||||
3.50% Senior Notes | 346,848 | 3,141 | 3.60 | 346,771 | 3,140 | 3.64 | 346,541 | 3,138 | 3.59 | ||||||||||||||||||||||||
5.375% Senior Notes | 347,345 | 4,847 | 5.55 | 347,204 | 4,845 | 5.61 | 346,788 | 4,839 | 5.54 | ||||||||||||||||||||||||
Junior Subordinated Debentures | 54,566 | 830 | 6.05 | 54,610 | 832 | 6.13 | 54,650 | 831 | 6.03 | ||||||||||||||||||||||||
6.05% Subordinated Notes | 47,421 | 236 | 1.98 | 47,866 | 218 | 1.83 | 49,298 | 162 | 1.30 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 8,697,066 | 11,252 | 0.51 | 8,916,512 | 10,656 | 0.48 | 9,395,572 | 10,131 | 0.43 | ||||||||||||||||||||||||
Portion of noninterest-bearing funding sources | 33,101,674 | 32,861,584 | 31,053,739 | ||||||||||||||||||||||||||||||
Total funding sources | 41,798,740 | 11,252 | 0.11 | 41,778,096 | 10,656 | 0.10 | 40,449,311 | 10,131 | 0.10 | ||||||||||||||||||||||||
Noninterest-bearing funding sources: | |||||||||||||||||||||||||||||||||
Demand deposits | 30,522,314 | 30,342,425 | 28,791,728 | ||||||||||||||||||||||||||||||
Other liabilities | 517,066 | 528,274 | 556,935 | ||||||||||||||||||||||||||||||
SVBFG stockholders’ equity | 3,586,196 | 3,451,702 | 3,131,687 | ||||||||||||||||||||||||||||||
Noncontrolling interests | 128,687 | 131,117 | 138,298 | ||||||||||||||||||||||||||||||
Portion used to fund interest-earning assets | (33,101,674 | ) | (32,861,584 | ) | (31,053,739 | ) | |||||||||||||||||||||||||||
Total liabilities and total equity | $ | 43,451,329 | $ | 43,370,030 | $ | 42,014,220 | |||||||||||||||||||||||||||
Net interest income and margin | $ | 289,442 | 2.75 | % | $ | 283,645 | 2.73 | % | $ | 255,040 | 2.50 | % | |||||||||||||||||||||
Total deposits | $ | 37,909,754 | $ | 38,159,959 | $ | 37,383,067 | |||||||||||||||||||||||||||
Average SVBFG stockholders’ equity as a percentage of average assets | 8.25 | % | 7.96 | % | 7.45 | % | |||||||||||||||||||||||||||
Reconciliation to reported net interest income: | |||||||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | (281 | ) | (309 | ) | (380 | ) | |||||||||||||||||||||||||||
Net interest income, as reported | $ | 289,161 | $ | 283,336 | $ | 254,660 |
(1) | Includes average interest-earning deposits in other financial institutions of $760 million, $633 million and $446 million; and $1.6 billion, $1.1 billion and $2.1 billion deposited at the Federal Reserve Bank, earning interest at the Fed Funds target rate, for the quarters ended September 30, 2016, June 30, 2016 and September 30, 2015, 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 $28.4 million, $24.2 million and $24.7 million for the quarters ended September 30, 2016, June 30, 2016 and September 30, 2015, respectively. |
(6) | Average investment securities of $804 million, $824 million and $739 million for the quarters ended September 30, 2016, June 30, 2016 and September 30, 2015, respectively, were classified as other assets as they are noninterest-earning assets. These investments consist primarily of non-marketable and other securities. |
Nine months ended | ||||||||||||||||||||||
September 30, 2016 | September 30, 2015 | |||||||||||||||||||||
(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) | $ | 2,111,619 | $ | 5,793 | 0.37 | % | $ | 2,086,409 | $ | 4,071 | 0.26 | % | ||||||||||
Investment securities: (2) | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||
Taxable | 13,608,722 | 140,932 | 1.38 | 14,140,044 | 139,734 | 1.32 | ||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||
Taxable | 8,287,043 | 120,189 | 1.94 | 7,617,112 | 113,762 | 2.00 | ||||||||||||||||
Non-taxable (3) | 60,147 | 2,605 | 5.79 | 80,190 | 3,416 | 5.70 | ||||||||||||||||
Total loans, net of unearned income (4) (5) | 17,955,497 | 617,456 | 4.59 | 14,431,785 | 507,746 | 4.70 | ||||||||||||||||
Total interest-earning assets | 42,023,028 | 886,975 | 2.82 | 38,355,540 | 768,729 | 2.68 | ||||||||||||||||
Cash and due from banks | 326,144 | 302,251 | ||||||||||||||||||||
Allowance for loan losses | (237,613 | ) | (184,119 | ) | ||||||||||||||||||
Other assets (6) | 1,558,157 | 1,433,017 | ||||||||||||||||||||
Total assets | $ | 43,669,716 | $ | 39,906,689 | ||||||||||||||||||
Funding sources: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 310,505 | $ | 181 | 0.08 | % | $ | 251,605 | $ | 228 | 0.12 | % | ||||||||||
Money market deposits | 5,887,627 | 3,297 | 0.07 | 6,021,622 | 3,306 | 0.07 | ||||||||||||||||
Money market deposits in foreign offices | 153,593 | 50 | 0.04 | 196,200 | 58 | 0.04 | ||||||||||||||||
Time deposits | 59,069 | 51 | 0.12 | 90,939 | 126 | 0.19 | ||||||||||||||||
Sweep deposits in foreign offices | 1,339,077 | 405 | 0.04 | 1,943,565 | 565 | 0.04 | ||||||||||||||||
Total interest-bearing deposits | 7,749,871 | 3,984 | 0.07 | 8,503,931 | 4,283 | 0.07 | ||||||||||||||||
Short-term borrowings | 287,735 | 1,065 | 0.49 | 25,505 | 28 | 0.15 | ||||||||||||||||
3.50% Senior Notes | 346,771 | 9,421 | 3.63 | 310,956 | 8,401 | 3.61 | ||||||||||||||||
5.375% Senior Notes | 347,205 | 14,534 | 5.59 | 346,656 | 14,511 | 5.60 | ||||||||||||||||
Junior Subordinated Debentures | 54,610 | 2,493 | 6.10 | 54,786 | 2,496 | 6.09 | ||||||||||||||||
6.05% Subordinated Notes | 47,859 | 648 | 1.81 | 49,621 | 458 | 1.23 | ||||||||||||||||
Total interest-bearing liabilities | 8,834,051 | 32,145 | 0.49 | 9,291,455 | 30,177 | 0.43 | ||||||||||||||||
Portion of noninterest-bearing funding sources | 33,188,977 | 29,064,085 | ||||||||||||||||||||
Total funding sources | 42,023,028 | 32,145 | 0.10 | 38,355,540 | 30,177 | 0.11 | ||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||
Demand deposits | 30,694,119 | 26,909,422 | ||||||||||||||||||||
Other liabilities | 556,568 | 539,787 | ||||||||||||||||||||
SVBFG stockholders’ equity | 3,453,904 | 3,022,086 | ||||||||||||||||||||
Noncontrolling interests | 131,074 | 143,939 | ||||||||||||||||||||
Portion used to fund interest-earning assets | (33,188,977 | ) | (29,064,085 | ) | ||||||||||||||||||
Total liabilities and total equity | $ | 43,669,716 | $ | 39,906,689 | ||||||||||||||||||
Net interest income and margin | $ | 854,830 | 2.72 | % | $ | 738,552 | 2.57 | % | ||||||||||||||
Total deposits | $ | 38,443,990 | $ | 35,413,353 | ||||||||||||||||||
Average SVBFG stockholders’ equity as a percentage of average assets | 7.91 | % | 7.57 | % | ||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||
Adjustments for taxable equivalent basis | (912 | ) | (1,196 | ) | ||||||||||||||||||
Net interest income, as reported | $ | 853,918 | $ | 737,356 |
(1) | Includes average interest-earning deposits in other financial institutions of $653 million and $467 million for the nine months ended September 30, 2016 and 2015, respectively. The balance also includes $1.4 billion and $1.5 billion deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate for the nine months ended September 30, 2016 and 2015, 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 $78.1 million and $71.4 million for the nine months ended September 30, 2016 and 2015, respectively. |
(6) | Average investment securities of $803 million and $761 million for the nine months ended September 30, 2016 and 2015, respectively, were classified as other assets as they are noninterest-earning assets. These investments consisted primarily of non-marketable and other securities. |
Three months ended | Nine months ended | |||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Equity warrant assets (1): | ||||||||||||||||||||
Gains (losses) on exercises, net | $ | 5,931 | $ | (1,487 | ) | $ | 2,173 | $ | 13,808 | $ | 26,363 | |||||||||
Cancellations and expirations | (1,161 | ) | (769 | ) | (412 | ) | (2,545 | ) | (818 | ) | ||||||||||
Changes in fair value, net | 16,788 | 7,345 | 8,924 | 21,989 | 29,034 | |||||||||||||||
Total net gains on equity warrant assets (2) | $ | 21,558 | $ | 5,089 | $ | 10,685 | $ | 33,252 | $ | 54,579 |
(1) | At September 30, 2016, we held warrants in 1,719 companies, compared to 1,697 companies at June 30, 2016 and 1,625 companies at September 30, 2015. The total value of our warrant portfolio was $145 million at September 30, 2016 compared to $130 million at both June 30, 2016 and September 30, 2015. Warrants in 18 companies each had values greater than $1.0 million and collectively represented 36 percent of the fair value of the total warrant portfolio at September 30, 2016. |
(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 | Nine months ended | ||||||||||||||
(Shares in thousands) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||
Weighted average common shares outstanding—basic | 52,046 | 51,831 | 51,479 | 51,842 | 51,254 | ||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options and employee stock purchase plan | 233 | 238 | 382 | 245 | 411 | ||||||||||
Restricted stock units | 134 | 118 | 187 | 142 | 213 | ||||||||||
Total effect of dilutive securities | 367 | 356 | 569 | 387 | 624 | ||||||||||
Weighted average common shares outstanding—diluted | 52,413 | 52,187 | 52,048 | 52,229 | 51,878 |
September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
SVB Financial: | |||||||||
CET 1 risk-based capital ratio | 12.75 | % | 12.43 | % | 12.48 | % | |||
Tier 1 risk-based capital ratio | 13.21 | 12.89 | 13.07 | ||||||
Total risk-based capital ratio | 14.22 | 13.92 | 14.05 | ||||||
Tier 1 leverage ratio | 8.35 | 8.08 | 7.67 | ||||||
Tangible common equity to tangible assets ratio (1) | 8.30 | 8.13 | 7.61 | ||||||
Tangible common equity to risk-weighted assets ratio (1) | 13.11 | 12.91 | 12.87 | ||||||
Silicon Valley Bank: | |||||||||
CET 1 risk-based capital ratio | 12.77 | % | 12.57 | % | 12.79 | % | |||
Tier 1 risk-based capital ratio | 12.77 | 12.57 | 12.79 | ||||||
Total risk-based capital ratio | 13.83 | 13.65 | 13.85 | ||||||
Tier 1 leverage ratio | 7.74 | 7.56 | 7.13 | ||||||
Tangible common equity to tangible assets ratio (1) | 7.98 | 7.90 | 7.42 | ||||||
Tangible common equity to risk-weighted assets ratio (1) | 13.14 | 13.07 | 13.21 |
(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) | September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||
Loans (individually or in the aggregate) to any single client, equal to or greater than $20 million | ||||||||||||
Commercial loans: | ||||||||||||
Software and internet | $ | 1,856,454 | $ | 1,967,503 | $ | 1,895,605 | ||||||
Hardware | 452,903 | 442,000 | 338,720 | |||||||||
Private equity/venture capital | 5,148,083 | 4,901,534 | 2,897,115 | |||||||||
Life science/healthcare | 664,041 | 620,409 | 527,259 | |||||||||
Premium wine (1) | 18,095 | 41,149 | 16,701 | |||||||||
Other | 160,989 | 165,087 | 99,825 | |||||||||
Total commercial loans | 8,300,565 | 8,137,682 | 5,775,225 | |||||||||
Real estate secured loans: | ||||||||||||
Premium wine (1) | 105,092 | 106,683 | 65,101 | |||||||||
Consumer (2) | — | — | — | |||||||||
Other | 21,333 | 21,533 | 22,133 | |||||||||
Total real estate secured loans | 126,425 | 128,216 | 87,234 | |||||||||
Consumer loans (2) | 101,392 | 105,717 | 97,501 | |||||||||
Total loans individually equal to or greater than $20 million | $ | 8,528,382 | $ | 8,371,615 | $ | 5,959,960 | ||||||
Loans (individually or in the aggregate) to any single client, less than $20 million | ||||||||||||
Commercial loans: | ||||||||||||
Software and internet | $ | 3,575,853 | $ | 3,603,450 | $ | 3,424,451 | ||||||
Hardware | 703,202 | 689,574 | 632,195 | |||||||||
Private equity/venture capital | 2,317,563 | 2,228,229 | 1,714,838 | |||||||||
Life science/healthcare | 1,081,369 | 1,173,471 | 1,085,421 | |||||||||
Premium wine | 173,496 | 151,420 | 178,747 | |||||||||
Other | 210,141 | 216,056 | 198,373 | |||||||||
Total commercial loans | 8,061,624 | 8,062,200 | 7,234,025 | |||||||||
Real estate secured loans: | ||||||||||||
Premium wine | 577,220 | 531,856 | 568,656 | |||||||||
Consumer | 1,834,370 | 1,747,144 | 1,443,170 | |||||||||
Other | 22,908 | 23,138 | 16,250 | |||||||||
Total real estate secured loans | 2,434,498 | 2,302,138 | 2,028,076 | |||||||||
Construction loans | 64,911 | 80,044 | 92,729 | |||||||||
Consumer loans | 139,513 | 133,905 | 115,151 | |||||||||
Total loans individually less than $20 million | $ | 10,700,546 | $ | 10,578,287 | $ | 9,469,981 | ||||||
Total gross loans | $ | 19,228,928 | $ | 18,949,902 | $ | 15,429,941 | ||||||
Loans individually equal to or greater than $20 million as a percentage of total gross loans | 44.4 | % | 44.2 | % | 38.6 | % | ||||||
Total clients with loans individually equal to or greater than $20 million | 223 | 228 | 165 | |||||||||
Loans individually equal to or greater than $20 million on nonaccrual status | $ | 77,408 | $ | 81,890 | $ | 84,588 |
(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) | September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||
Gross nonaccrual, past due, and restructured loans: | ||||||||||||
Nonaccrual loans | $ | 106,216 | $ | 124,319 | $ | 115,461 | ||||||
Loans past due 90 days or more still accruing interest | 125 | 412 | 169 | |||||||||
Total nonperforming loans | 106,341 | 124,731 | 115,630 | |||||||||
OREO and other foreclosed assets | — | — | — | |||||||||
Total nonperforming assets | $ | 106,341 | $ | 124,731 | $ | 115,630 | ||||||
Nonperforming loans as a percentage of total gross loans | 0.55 | % | 0.66 | % | 0.75 | % | ||||||
Nonperforming assets as a percentage of total assets | 0.25 | 0.29 | 0.28 | |||||||||
Allowance for loan losses | $ | 240,565 | $ | 244,723 | $ | 197,507 | ||||||
As a percentage of total gross loans | 1.25 | % | 1.29 | % | 1.28 | % | ||||||
As a percentage of total gross nonperforming loans | 226.22 | 196.20 | 170.81 | |||||||||
Allowance for loan losses for nonaccrual loans | $ | 44,348 | $ | 59,856 | $ | 46,256 | ||||||
As a percentage of total gross loans | 0.23 | % | 0.32 | % | 0.30 | % | ||||||
As a percentage of total gross nonperforming loans | 41.70 | 47.99 | 40.00 | |||||||||
Allowance for loan losses for total gross performing loans | $ | 196,217 | $ | 184,867 | $ | 151,251 | ||||||
As a percentage of total gross loans | 1.02 | % | 0.98 | % | 0.98 | % | ||||||
As a percentage of total gross performing loans | 1.03 | 0.98 | 0.99 | |||||||||
Total gross loans | $ | 19,228,928 | $ | 18,949,902 | $ | 15,429,941 | ||||||
Total gross performing loans | 19,122,587 | 18,825,171 | 15,314,311 | |||||||||
Reserve for unfunded credit commitments (1) | 35,924 | 34,889 | 36,631 | |||||||||
As a percentage of total unfunded credit commitments | 0.22 | % | 0.23 | % | 0.23 | % | ||||||
Total unfunded credit commitments (2) | $ | 16,297,086 | $ | 15,502,488 | $ | 16,087,307 |
(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 | Nine months ended | |||||||||||||||||||
(Dollars in millions) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Client directed investment assets | $ | 6,846 | $ | 7,248 | $ | 8,392 | $ | 7,137 | $ | 7,752 | ||||||||||
Client investment assets under management (2) | 20,692 | 21,222 | 20,943 | 21,215 | 19,305 | |||||||||||||||
Sweep money market funds | 15,567 | 14,413 | 12,638 | 14,468 | 10,765 | |||||||||||||||
Total average client investment funds | $ | 43,105 | $ | 42,883 | $ | 41,973 | $ | 42,820 | $ | 37,822 |
Period-end balances at | ||||||||||||||||||||
(Dollars in millions) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||
Client directed investment assets | $ | 6,262 | $ | 7,117 | $ | 7,512 | $ | 7,527 | $ | 8,487 | ||||||||||
Client investment assets under management (2) | 20,819 | 20,508 | 21,431 | 22,454 | 21,823 | |||||||||||||||
Sweep money market funds | 16,263 | 15,447 | 13,331 | 14,011 | 13,257 | |||||||||||||||
Total period-end client investment funds | $ | 43,344 | $ | 43,072 | $ | 42,274 | $ | 43,992 | $ | 43,567 |
(1) | Off-Balance sheet client investment funds are maintained at third-party financial institutions. |
(2) | These funds represent investments in third-party money market mutual funds and fixed income securities managed by SVB Asset Management. |
• | Income and expense attributable to noncontrolling interests — As part of our funds management business, we recognize the entire income or loss from certain funds where we own less than 100 percent. We are required under GAAP to consolidate 100 percent of the results of certain SVB Capital funds. We adopted ASU 2015-02, Amendments to the Consolidation Analysis, related to our consolidated variable interest entities effective January 1, 2015. 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. |
• | 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 operating efficiency ratio — This ratio excludes certain financial items that are otherwise required under GAAP. It is calculated by dividing noninterest expense by total revenue, after adjusting both amounts by income (losses) and expense attributable to noncontrolling interests, adjustments to net interest income for a taxable equivalent basis and the losses 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 (losses) on investment securities, net, gains (losses) on derivative instruments, net, and other noninterest income items. |
Three months ended | Nine months ended | |||||||||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (Dollars in thousands) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||||||||
GAAP noninterest income | $ | 144,140 | $ | 112,776 | $ | 86,134 | $ | 114,506 | $ | 108,477 | $ | 343,050 | $ | 358,288 | ||||||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 4,679 | 1,619 | (2,671 | ) | 2,673 | 6,343 | 3,627 | 29,063 | ||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | $ | 139,461 | $ | 111,157 | $ | 88,805 | $ | 111,833 | $ | 102,134 | $ | 339,423 | $ | 329,225 |
Three months ended | Nine months ended | |||||||||||||||||||||||||||
Non-GAAP core fee income (Dollars in thousands) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||||||||
GAAP noninterest income | $ | 144,140 | $ | 112,776 | $ | 86,134 | $ | 114,506 | $ | 108,477 | $ | 343,050 | $ | 358,288 | ||||||||||||||
Less: gains (losses) on investment securities, net | 23,178 | 23,270 | (4,684 | ) | 12,439 | 18,768 | 41,764 | 77,006 | ||||||||||||||||||||
Less: gains (losses) on derivative instruments, net | 19,744 | 8,798 | (1,695 | ) | 17,515 | 10,244 | 26,847 | 66,290 | ||||||||||||||||||||
Less: other noninterest income | 20,692 | 6,254 | 15,971 | 11,847 | 11,077 | 42,917 | 22,315 | |||||||||||||||||||||
Non-GAAP core fee income | $ | 80,526 | $ | 74,454 | $ | 76,542 | $ | 72,705 | $ | 68,388 | $ | 231,522 | $ | 192,677 |
Three months ended | Nine months ended | |||||||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests (Dollars in thousands) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||||||||
GAAP net gains (losses) on investment securities | $ | 23,178 | $ | 23,270 | $ | (4,684 | ) | $ | 12,439 | $ | 18,768 | $ | 41,764 | $ | 77,006 | |||||||||||||
Less: income (losses) attributable to noncontrolling interests, including carried interest | 4,745 | 1,622 | (2,716 | ) | 2,803 | 6,102 | 3,651 | 29,309 | ||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 18,433 | $ | 21,648 | $ | (1,968 | ) | $ | 9,636 | $ | 12,666 | $ | 38,113 | $ | 47,697 |
Three months ended | Nine months ended | |||||||||||||||||||||||||||
Non-GAAP operating efficiency ratio, net of noncontrolling interests (Dollars in thousands, except ratios) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||||||||
GAAP noninterest expense | $ | 221,827 | $ | 200,352 | $ | 204,033 | $ | 208,608 | $ | 184,755 | $ | 626,212 | $ | 569,408 | ||||||||||||||
Less: expense attributable to noncontrolling interests | 117 | 258 | (91 | ) | 178 | 116 | 284 | 650 | ||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests | $ | 221,710 | $ | 200,094 | $ | 204,124 | $ | 208,430 | $ | 184,639 | $ | 625,928 | $ | 568,758 | ||||||||||||||
GAAP net interest income | $ | 289,161 | $ | 283,336 | $ | 281,421 | $ | 269,069 | $ | 254,660 | $ | 853,918 | $ | 737,356 | ||||||||||||||
Adjustments for taxable equivalent basis | 281 | 309 | 322 | 368 | 380 | 912 | 1,196 | |||||||||||||||||||||
Non-GAAP taxable equivalent net interest income | $ | 289,442 | $ | 283,645 | $ | 281,743 | $ | 269,437 | $ | 255,040 | $ | 854,830 | $ | 738,552 | ||||||||||||||
Less: net interest income attributable to noncontrolling interests | 4 | 55 | 3 | 2 | 2 | 62 | 6 | |||||||||||||||||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests | $ | 289,438 | $ | 283,590 | $ | 281,740 | $ | 269,435 | $ | 255,038 | $ | 854,768 | $ | 738,546 | ||||||||||||||
GAAP noninterest income | $ | 144,140 | $ | 112,776 | $ | 86,134 | $ | 114,506 | $ | 108,477 | $ | 343,050 | $ | 358,288 | ||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | 139,461 | 111,157 | 88,805 | 111,833 | 102,134 | 339,423 | 329,225 | |||||||||||||||||||||
GAAP total revenue | $ | 433,301 | $ | 396,112 | $ | 367,555 | $ | 383,575 | $ | 363,137 | $ | 1,196,968 | $ | 1,095,644 | ||||||||||||||
Non-GAAP taxable equivalent revenue, net of noncontrolling interests | $ | 428,899 | $ | 394,747 | $ | 370,545 | $ | 381,268 | $ | 357,172 | $ | 1,194,191 | $ | 1,067,771 | ||||||||||||||
GAAP operating efficiency ratio | 51.19 | % | 50.58 | % | 55.51 | % | 54.39 | % | 50.88 | % | 52.32 | % | 51.97 | % | ||||||||||||||
Non-GAAP, net of noncontrolling interests operating efficiency ratio | 51.69 | 50.69 | 55.09 | 54.67 | 51.69 | 52.41 | 53.27 |
Non-GAAP non-marketable and other securities, net of noncontrolling interests (Dollars in thousands) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||
GAAP non-marketable and other securities | $ | 625,178 | $ | 664,054 | $ | 668,497 | $ | 674,946 | $ | 650,555 | ||||||||||
Less: amounts attributable to noncontrolling interests | 121,397 | 121,803 | 123,158 | 126,389 | 129,417 | |||||||||||||||
Non-GAAP non-marketable and other securities, net of noncontrolling interests | $ | 503,781 | $ | 542,251 | $ | 545,339 | $ | 548,557 | $ | 521,138 |
SVB Financial Group tangible common equity, tangible assets and risk-weighted assets (Dollars in thousands, except ratios) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||
GAAP SVBFG stockholders’ equity | $ | 3,593,051 | $ | 3,505,578 | $ | 3,381,044 | $ | 3,198,134 | $ | 3,174,899 | ||||||||||
Tangible common equity | $ | 3,593,051 | $ | 3,505,578 | $ | 3,381,044 | $ | 3,198,134 | $ | 3,174,899 | ||||||||||
GAAP total assets | $ | 43,274,037 | $ | 43,132,654 | $ | 43,573,902 | $ | 44,686,703 | $ | 41,730,982 | ||||||||||
Tangible assets | $ | 43,274,037 | $ | 43,132,654 | $ | 43,573,902 | $ | 44,686,703 | $ | 41,730,982 | ||||||||||
Risk-weighted assets | $ | 27,407,756 | $ | 27,145,857 | $ | 26,382,154 | $ | 25,919,594 | $ | 24,666,658 | ||||||||||
Tangible common equity to tangible assets | 8.30 | % | 8.13 | % | 7.76 | % | 7.16 | % | 7.61 | % | ||||||||||
Tangible common equity to risk-weighted assets | 13.11 | 12.91 | 12.82 | 12.34 | 12.87 |
Silicon Valley Bank tangible common equity, tangible assets and risk-weighted assets (Dollars in thousands, except ratios) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||
Tangible common equity | $ | 3,405,028 | $ | 3,359,097 | $ | 3,246,536 | $ | 3,059,045 | $ | 3,048,933 | ||||||||||
Tangible assets | $ | 42,651,702 | $ | 42,522,293 | $ | 42,990,146 | $ | 44,045,967 | $ | 41,073,120 | ||||||||||
Risk-weighted assets | $ | 25,909,301 | $ | 25,691,978 | $ | 24,922,140 | $ | 24,301,043 | $ | 23,072,656 | ||||||||||
Tangible common equity to tangible assets | 7.98 | % | 7.90 | % | 7.55 | % | 6.95 | % | 7.42 | % | ||||||||||
Tangible common equity to risk-weighted assets | 13.14 | 13.07 | 13.03 | 12.59 | 13.21 |
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