Q3 2016
Corporate Overview and
Financial Results
October 31, 2016
2 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Contents
3
4
6
18
19
21
23
41
Important information regarding forward-looking statements and
use of non-GAAP financial measures
About SVB
Q3 2016 performance
Regulatory environment
Capital
Outlook for 2016 and 2017
Appendix
Non-GAAP reconciliations
3 Q3 2016 Corporate Overview and Financial Results October 31, 2016
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, and are subject to known and unknown risks and uncertainties, many of which may be beyond our control. 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. In this presentation, we make forward-looking statements discussing management’s
expectations about, among other things: economic conditions; opportunities in the market; outlook on our clients' performance; our financial, credit, and business performance,
including potential investment gains, loan growth, loan mix, loan yields, credit quality, deposits, noninterest income, and expense levels; and financial results (and the components of
such results) for certain quarters in, and for the full years 2016 and 2017. 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. 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:
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 IPOs 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.
We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, including (i) our latest Annual Report on Form 10-K for the year
ended December 31, 2015, which was filed on February 26, 2016; (ii) our latest Quarterly Report on Form 10-Q; and (iii) our most recent earnings release filed on Form 8-K on
October 20, 2016. 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.
This presentation shall not constitute an offer or solicitation in connection with any securities.
Use of Non-GAAP Financial Measures
To supplement our financial disclosures that are presented in accordance with GAAP, we use certain non-GAAP measures (including, but not limited to, non-GAAP core fee income,
non-GAAP noninterest income, non-GAAP net gains on investment securities, non-GAAP non-marketable and other securities, non-GAAP noninterest expense and non-GAAP
financial ratios) of financial performance. These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures by other companies in
our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s
performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance
with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirement.
We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures (as applicable), provide meaningful supplemental
information regarding our performance by: (i) excluding amounts attributable to noncontrolling interests for which we effectively do not receive the economic benefit or cost of, where
indicated, or (ii) providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes
that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These
non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our industry. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or
superior to, net income or other financial measures prepared in accordance with GAAP. Under the “Non-GAAP reconciliations” section at the end of this presentation, we have
provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP financial measures used in this presentation, or a reconciliation of the
non-GAAP calculation of the financial measure. Please refer to that section for more information.
Important Information
4 Q3 2016 Corporate Overview and Financial Results October 31, 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 Q3’16
* Total Client Funds refers to the sum of on-balance sheet deposits and off-balance sheet client investment funds
$43.5B
$18.6B
$81.0B
A Unique Financial Services
Company
October 31, 2016
total client funds*
assets
loans
5 Q3 2016 Corporate Overview and Financial Results October 31, 2016
We Serve the Global
Innovation Economy
Technology + Life Sciences + Healthcare
5
Accelerator
Revenue
<$5M
Growth
Revenue
$5M-$75M
Corp Fin
Revenue
>$75M
Investors
Private Equity
Venture Capital
Individuals
Private Bank
October 31, 2016
6 Q3 2016 Corporate Overview and Financial Results October 31, 2016
A strong quarter
• Stabilizing VC environment
• Healthy loan growth
• Return to total client funds growth
• PE/VC gains strong; “thawing” IPO market
• Stable credit quality
• Positive outlook for 2017
…with challenges
• VC market “recalibration”
• Low interest rates
• Complex regulatory environment/
increasing requirements
• Competition
Q3’16 Takeaways
October 31, 2016
7 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Q3’16 vs. Q2’16: Solid Results
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 $18.4M. 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.
Average loans: +2.5%
Period-end loans: +1.5%
Non-interest income:
+27.8%;
Core fee income4: +8.2%
Gains of $21.6M2 on
warrants and $23.2M on
investment securities2,3
Net interest income: +2.1%
Net interest margin: +2
bps
Average total client funds1
relatively flat
Average fixed income
securities decreased
4.7%
Stable credit quality overall with net charge-offs of 48 bps (annualized)
and non-performing loans of 55 bps
Solid capital position and increases in all key capital ratios;
Bank tier 1 leverage ratio of 7.74% (+18 bps)
Highest-ever quarterly EPS ($2.12) and net income
($111.1M)
8 Q3 2016 Corporate Overview and Financial Results October 31, 2016
$19
$12
-$5
$23 $23
$13
$10
-$2
$22
$18
$11
$16
$7 $5
$22
-$10
$0
$10
$20
$30
Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
M
ill
io
ns
GAAP net gains (losses) on investment securities
Net gains (losses) on investment securities net of non-controlling interests*
Net equity warrant gains
Q3’16 Warrant and Investment Securities Gains
Rebound after VC market “recalibration” pressure in 1H’16
* This is a non-GAAP measure. Please see non-GAAP reconciliations at the end of this presentation for more information.
Included $12.4m gain from
sale of U.S. Treasury
securities
Included $10.3m
unrealized gains from
Acacia Communications
IPO
9 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Average Loans Grew 25% Year Over Year
Private equity continued to drive growth in Q3’16
$14.9 $15.7
$17.0 $18.2 18.6
$15.3
$16.7
$17.7
$18.8 $19.1
$0
$5
$10
$15
$20
$25
Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
Average loans Period-end loans
Billions
10 Q3 2016 Corporate Overview and Financial Results October 31, 2016
A Diversified Loan Portfolio
1. As of 9/30/2016; gross loans do not include the impact of deferred fees and costs.
2. Private Bank includes loans designated as Consumer Loans (including real estate
secured loans) in our earnings releases and our Form 10-K and 10-Q reports.
3. Technology and Life Science/Healthcare percentages are as a % of Total Gross
Loans
4. Primarily capital call lines of credit
Gross Loans: $19.2 Billion1,2
Technology and Life Science/Healthcare Only1,3
$8.3 Billion (43% of Gross Loans)
Non-Early stage
$0.9
Balance-sheet
dependent
covered by current
assets; $1.7B is asset-
based
Cash flow dependent 1
Early Stage
$1.1
Balance Sheet
$2.5
Sponsored Buyout
$2.1
Investor-dependent 1
Revenue: $0-$5MM
5%
13%
11%
Investor-dependent 2
Revenue >$5MM
6%
9% Other $1.7
Cash flow dependent 2
Cash flow and hybrid
Software & Internet
$5.4
28%
Hardware
$1.2
6%
Life Science/
Healthcare
$1.7
9%
Private
Equity/Venture
Capital4
$7.5
39%
Wine
$0.9
5%
Private Bank
$2.1
11%
Other
$0.4
2%
11 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Average Total Client Funds Flat in Q3’16
Client funds franchise still strong but lower market valuations, weak
exit markets and client M&A activity have slowed total client funds
growth YTD.
$37.4 $38.9 $39.3 $38.2 $37.9
$42.0 $43.4 $42.5 $42.9 $43.1
$79.4 $82.3 $81.7 $81.0 $81.0
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
Billions
Average off-balance sheet client investment funds
Average deposits
12 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Net Interest Income Grew 13.5% Year Over Year
Millions
$93.7
$289.47.58%
2.75%
2%
3%
4%
5%
6%
7%
8%
$80
$120
$160
$200
$240
$280
$320
Q
1'
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3'
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3'
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3'
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1'
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3'
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1'
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3'
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1'
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3'
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1'
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3'
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1'
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3'
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Net interest income Net interest margin
13 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Millions
Credit Quality Was Stable
Net charge-offs increased to $22.5M
(48bps) vs. $19.4M (43bps) in Q2
The provision for non-performing loans
was net of a $5.5M partial reserve
release due to credit improvement on a
non-performing Sponsored Buyout loan
Provision for loan losses of $19.0M (vs.
$36.3M in Q2’16) consisted of the
following:
• $8.0M provisions for performing
loans
• $5.5M for charge-offs not previously
reserved for
• $4.0M for non-performing loans
• $2.8M for loan growth
Q3’16 Credit Drivers
Non-performing loans decreased to
$106.3M (55 bps) vs. $124.7M (66
bps) in Q2
0.47%
0.10%
0.66% 0.55%
$51.6M
$11.8M
$124.7M
$106.3M
0.0%
0.5%
1.0%
1.5%
2.0%
Non-performing loans/total gross loans
Total non-performing loans
0.41% 0.05%
0.75%
0.48%
$10.5M
$1.7M
$28.5M
$22.5M
0.0%
0.5%
1.0%
1.5%
2.0%
Net charge-offs/average total gross loans (annualized)
Net charge-offs
14 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Our Credit Risk Profile Has Improved Over Time
• Technology and Life Sciences/Healthcare lending represents only 43 percent of
total loans (compared to 56 percent in 2007)
• The strongest growth has come from segments with the best historical credit
performance: Private Equity/Venture Capital (PE/VC) and Private Bank.
• Growth in these areas has reduced the risk profile of our loan portfolio.
• PE/VC, Private Bank and Wine represent 55 percent of the loan portfolio
(compared to 38 percent in 2007) and have experienced nominal losses over the
last decade.
• Majority of loan losses have historically come from early-stage (ES) portfolio,
which constitutes 6 percent of total loans 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)
4.2%
YTD 2016
annualized
ES loss rate
As of 9/30/16
15 Q3 2016 Corporate Overview and Financial Results October 31, 2016
GAAP Non-Interest Income
Non-Interest Income
$238.7 $310.2 $14.2 $80.2 $167.6 $123.5 $126.3 $108.5 $114.5 $86.1 $112.8
Q3’16 non-GAAP non-interest income1 included the following components:
• Derivative gains of $19.7M, reflecting valuation-related warrant gains of $21.6M; $10.3M of these gains were related to
the IPO of Acacia Communications during the quarter
• Non-GAAP net gains on investment securities, net of NCI of $18.4M due to healthy new funding rounds
• Core fee income2 of $80.5M, with increases driven by credit card, foreign exchange and letter of credit income
• Other non-interest income of $20.7M, including $6.7M of carried interest related to VC-fund performance
1) Non-GAAP non-interest income, 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
$100.9
$123.5
$49.5
$75.3
$104.3 $109.4 $117.7 $102.1 $111.8 $88.8
$111.2
$139.5
$0
$50
$100
$150
$200
$250
$300
$350
GAAP Non-Interest Income
Non-GAAP Non-Interest Income net of Non-Controlling Interests
$144.1
16 Q3 2016 Corporate Overview and Financial Results October 31, 2016
$49.0 $50.9 $50.0
$53.3 $55.3
$58.2
$66.1 $68.4
$72.7
$76.5 $74.5
$80.5
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Millions
Core Fee Income*
* This is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for more information.
Core fee income includes fees from letters of credit, client
investments, credit cards, deposit service charges, foreign
exchange and lending-related fees, in aggregate.
17 Q3 2016 Corporate Overview and Financial Results October 31, 2016
$15.9 $17.2 $17.9 $17.9 $18.6 $17.7
$22.4 $23.0 $24.0
$27.0 $24.1 $25.9
$9.2 $10.3
$10.3 $10.9 $10.4 $12.1
$14.2 $14.5
$15.8
$15.5
$15.4
$18.3
$0
$10
$20
$30
$40
$50
Millions
Foreign Exchange Credit Cards
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.
3) Credit card increase in Q3’16 was primarily due to a one-time reclassification of $1.8M in revenues previously reported in other noninterest expense related to certain
merchant services client contracts.
• Foreign exchange and credit card fees have driven 61% of core fee
income increases since Q4’13
• YTD credit card fees have been impacted by lower client spending as
a result of the recent VC market recalibration
Core Fee Income1 Growth Drivers
2
3
18 Q3 2016 Corporate Overview and Financial Results October 31, 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
October 3 , 2016
19 Q3 2016 Corporate Overview and Financial Results October 31, 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 quarterly earnings releases.
2) These are non-GAAP measures. Please see non-GAAP reconciliations at end of this presentation for more information.
2)
2014 2015 Q1’16 Q2’16 Q3’16
CET 1 risk-based Capital - 12.28% 12.38% 12.43% 12.75%
Tier 1 risk-based capital 12.91% 12.83% 12.86% 12.89% 13.21%
Total risk-based capital 13.92% 13.84% 13.90% 13.92% 14.22%
Tier 1 leverage 7.74% 7.63% 7.69% 8.08% 8.35%
Tangible common equity to
tangible assets2
7.15% 7.16% 7.76% 8.13% 8.3%
Tangible common equity to
risk-weighted assets2
12.93% 12.34% 12.82% 12.91% 13.11%
20 Q3 2016 Corporate Overview and Financial Results October 31, 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 quarterly earnings 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 YTD 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
2)
2014 2015 Q1’16 Q2’16 Q3’16
CET 1 risk-based Capital - 12.52% 12.57% 12.57% 12.77%
Tier 1 risk-based capital 11.09% 12.52% 12.57% 12.57% 12.77%
Total risk-based capital 12.12% 13.60% 13.66% 13.65% 13.83%
Tier 1 leverage 6.64% 7.09% 7.19% 7.56% 7.74%
Tangible common equity
to tangible assets2
6.38% 6.95% 7.55% 7.90% 7.98%
Tangible common equity
to risk-weighted assets2
11.19% 12.59% 13.03% 13.07% 13.14%
21 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Business Driver 2016 Full Year Outlook vs. 2015 Full Year Results 1 Change since 7/21/16
Average loans Increase at a percentage rate in the mid- 20s
No change
Average deposits Increase at a percentage rate in the mid- single digits No change
Net interest income1 Increase at a percentage rate in the mid-teens No change
Net interest margin1 Between 2.60% and 2.80% No change
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 Between 0.30%-0.50% of avg. total gross loans No change
Non-performing loans/total gross loans Between 0.40% and 0.60% of total gross loans
Improved from “between 0.60% and 1.00% of total gross
loans due to credit improvements
Core fee income 2 Increase at a percentage rate in the high teens
Decreased from “low 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
expenses related to non-controlling
interests)3,4
Increase at a percentage rate in
the high single digits No change
2016 Full-Year Outlook (as of 10/20/16)
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 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.
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 presentation, 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 our quarterly earnings 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.
22 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Business Driver 2017 Full Year Outlook vs. 2016 Full Year Results1
Average loans Increase at a percentage rate in the high teens
Average deposits Increase at a percentage rate in the mid- to high single digits
Net interest income1 Increase at a percentage rate in the low double digits
Net loan charge-offs Between 0.30%-0.50% of avg. total gross loans
Core fee income 2 Increase at a percentage rate in the mid- to high teens
Non-interest expense
(excluding expense related to
non-controlling interests)3,4
Increase at a percentage rate in the high single digits
2017 Preliminary Outlook (as of 10/20/16)
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 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.
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 presentation, 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 our quarterly earnings 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.
23 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Appendix
24 Q3 2016 Corporate Overview and Financial Results October 31, 2016
25
28
30
31
36
37
38
40
41
About SVB
Financial Highlights
ROE
Balance Sheet
Interest Rate Sensitivity
Credit Quality
Investment Securities and Warrants
Efficiency Ratio
Non-GAAP reconciliations
Appendix Contents
25 Q3 2016 Corporate Overview and Financial Results October 31, 2016
At the Center of the Innovation
Economy for Over 30 Years
Silicon Valley Bank
Global commercial banking
for innovators, enterprises
and investors
SVB Private Bank
Private banking
SVB Asset Management
Investment strategies and
solutions to help companies
preserve and grow capital
SVB Capital
Private venture investing
expertise, oversight
and management
SVB Analytics
Strategic advisory, research
and valuation services
SVB Wealth Advisory
Private wealth management
26 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Serving Innovation Around the World
$1.5B
(+28.7%)
international
loans*
$6.7B
(-0.8%)
international
deposits*
34%
Increase in
international
clients
*Average loan and deposit balances for Q3’16
(Growth rates Q3’16 compared to Q3’15)
October 31, 2016
27 Q3 2016 Corporate Overview and Financial Results October 31, 2016
• Average tenure of 10 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
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
John China
HEAD OF RELATIONSHIP
BANKING
20 years at SVB
Michelle Draper
CHIEF MARKETING OFFICER
3 years at SVB
Laura Izurieta
CHIEF RISK OFFICER
Recently joined
Michael Zuckert
GENERAL COUNSEL
2 years at SVB
Bruce Wallace
CHIEF DIGITAL OFFICER
8 years at SVB
Joan Parsons
HEAD OF SPECIALTY BANKING
22 years at SVB
Roger Leone
CHIEF INFORMATION OFFICER
1 year at SVB
28 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Q3’15 Q4’15 Q1’16 Q2’16 Q3’16
Diluted earnings per share $1.57 $1.68 $1.52 $1.78 $2.12
Net income available to common stockholders $81.7M $87.5M $79.2M $93.0M $111.1M
Average loans
Change
$14.9B
4.2%
$15.7B
5.6%
$17.0B
8.0%
$18.2B
7.0%
$18.6B
2.5%
Average deposits
Change
$37.4B
6.9%
$38.9B
4.1%
$39.3B
1.0%
$38.2B
-2.8%
$37.9B
-0.7%
Average off-balance sheet client investment
funds Change
$42.0B
10.8%
$43.40B
3.5%
$42.5B
-2.2%
$42.9B
1.0%
$43.1B
0.5%
Average fixed income securities $22.9B $23.5B $23.4B $21.8B $20.7B
Net interest margin 2.50% 2.54% 2.67% 2.73% 2.75%
Net interest income $254.7M $269.1M $281.4M $283.3M $289.2M
GAAP non-interest income $108.5M $114.5M $86.1M $112.8M $144.1M
Non-GAAP non-interest income, net of non-
controlling interests *
$102.1M $111.8M $88.8M $111.2M $139.5M
Net charge-offs /
Average total gross loans (annualized)
0.75% 0.28% 0.49% 0.43% 0.48%
Non-interest expense $184.8M $208.6M $204.0M $200.4M $221.8M
Return on average SVBFG stockholders’ equity
(annualized)
10.35% 10.74% 9.58% 10.83% 12.32%
Return on average assets (annualized) 0.77% 0.80% 0.72% 0.86% 1.02%
• Non-GAAP non-interest income net of non-controlling interests is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for
more information.
Quarterly Highlights
29 Q3 2016 Corporate Overview and Financial Results October 31, 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
GAAP non-interest income $382.3 $335.5M $673.2M $572.2M $472,.8M
Non-GAAP non-interest income , net of non-
controlling interests7
$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 11.13% 10.46% 5 11.18%
Return on average assets (annualized) 0.92% 1,2 0.82%3 0.92% 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 is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for more
information
Annual Highlights
30 Q3 2016 Corporate Overview and Financial Results October 31, 2016
ROAE has been impacted by pressure on asset yields due to low interest rates
and deposit growth, as well as continued investment in our growth and
expansion.
Strong Return on Average Equity vs. Peers1
1) “Peers” refers to peer group as reported in our 2016 Proxy Statement, with adjustments to reflect recent acquisitions of several peers since
the Proxy date. Peer ROAE data is from SNL Financial and reflects the most recent available data.
2) Annualized
2
15.17%
17.98%
10.21%
2.13%
7.72%
11.87%
10.09%
11.13%
10.46%
11.18% 10.95%
12.13%
9.73%
2.85%
-4.45%
5.70%
8.54%
9.27% 9.42% 8.82% 8.67% 8.95%
-5%
0%
5%
10%
15%
20%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD'16
SVB Peers
31 Q3 2016 Corporate Overview and Financial Results October 31, 2016
A Highly Liquid Balance Sheet (9/30/16)
Period-end assets
$43.3B
Period-end liabilities
$39.6B
* Non-marketable securities net of non-controlling interests were $504M. This is a non-GAAP measure. Please see non-GAAP reconciliations at end of presentation for
more information.
Non-marketable securities
(VC Investments)
1%
$0.6B*
Net loans
44%
$18.9B
AFS securities
(primarily
agencies)
29%
$12.7B
Held-to-
maturity
securities
18%
$7.8B
Cash
6%
$2.5B
Other
2%
$0.8B
Borrowings
2%
$0.8B
Interest-
bearing deposits
18%
$7.2B
Non-interest-
bearing deposits
78%
$31.0B
Other
2%
$0.6B
32 Q3 2016 Corporate Overview and Financial Results October 31, 2016
2016 Balance Sheet Growth Impacted by VC “Recalibration”
Investment portfolio = 47%
of Total Assets at 9/30/16
Non-Interest-Bearing Deposits
= 81% of Total Deposits at
9/30/16
Billions (period end) Billions (period end)
$20.0
$22.8
$26.4
$39.3
$44.7 $43.3
$0
$15
$30
$45
2011 2012 2013 2014 2015 Q3'16
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
$39.6
$0
$15
$30
$45
2011 2012 2013 2014 2015 Q3'16
Other liabilities Borrowings
Interest bearing deposits Noninterest-bearing deposits
33 Q3 2016 Corporate Overview and Financial Results October 31, 2016
8.9
2.1
1.1
0.5$10.5
$11.3 $12.0
$13.5
$16.4
$12.7
$-
$2
$4
$6
$8
$10
$12
$14
$16
A High Quality Investment Portfolio
A highly liquid portfolio with a duration of 2.3 years
Available-for-Sale Securities Held-to-Maturity Securities*
Investment portfolio represents 47% of total assets
Billions Billions
U.S. Treasuries make up 44% 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.
(As of 9/30/16)
$2.1
$3.6
$1.1
$0.6
$0.0 $0.0 $0.0
$7.4
$8.8
$7.8
$0
$2
$4
$6
$8
$10
34 Q3 2016 Corporate Overview and Financial Results October 31, 2016
* 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
YTD 2016 market
dynamics resulted in
slower client fund
flows
• Slower early-stage
funding
• Lack of VC-backed
exits
• M&A activity by our
clients
• Acquisitions of our
clients
*
$16.7 $19.2 $22.5 $34.3 $39.1 $38.2
$18.7
$22.5
$26.4
$32.4
$44.0 $43.3
$35.5
$41.7
$48.8
$66.7
$83.1 $81.5
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2011 2012 2013 2014 2015 Q3'16
B
ill
io
ns
Period-end client investment funds
Period-end deposits
Period-end total client funds
35 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Strong Loan Growth
Recent growth driven by Private Equity, Private Bank and Global
$3.5 $4.6 $4.7 $4.4
$5.8
$7.6
$9.4
$11.5
$14.8
$17.0
$18.2 $18.6
$4.2
$5.5
$4.5
$5.5
$7.0
$8.9
$10.9
$14.4
$16.7
$17.7
$18.8 $19.1
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
B
ill
io
ns
Average loans
Period-end loans
36 Q3 2016 Corporate Overview and Financial Results October 31, 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 +$110M +$2.10 +2.35% +0.43%
+200 +$220M +$4.21 +4.57% +0.87%
+300 +$331M +$6.31 +6.67% +1.30%
We expect each 25 bps increase in short-term rates to
contribute approximately $27 million to Net Interest Income*
We Expect Rising Rates to Benefit Us Significantly
* As reported in our sensitivity analysis included in our most recent 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 September 30, 2016. Actual results may differ.
37 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Millions
Financial Crisis:
5 problem loans drove
short-lived spike in
NPLs
History of Strong Credit Quality
Though elevated, NPLs from Q2’15 through
Q3’16 remain manageable, driven primarily
by four Sponsored Buyout (SBO) loans, two
of which have been resolved.
Financial Crisis:
5 problem loans
drove short-lived
spike in NCOs
* *Annualized
Five loans from two
“underserved niche”
segments to which we no
longer lend drove increase in
NCOs
3.32%
-0.08%
2.64%
-0.02% 0.43%* 0.48%*
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Net charge-offs as % of average total gross loans
$18.4
$7.6
$87.2
$123.4 $124.7
$106.3
1.07%
0.18%
1.57%
0.73% 0.66%
0.55%
$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 Q3'16
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Non-performing loans Non-performing loans as % total gross loans
38 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Investment Securities and Warrant Gains
* This is a non-GAAP measure. Please see non-GAAP reconciliations at end of presentation for more information.
$26.1
$37.4
$(22.1)
$(1.1)
$16.6 $19.1 $15.9 $12.7 $9.6
$(2.0)
$21.6 $18.4
$16.6
$25.4
$12.3 $13.0
$20.2 $20.3 $23.6
$10.7 $16.4
$6.6
$5.1
$21.6
-$30
-$20
-$10
$0
$10
$20
$30
$40
$50
$60
$70
Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
M
illi
on
s
Net equity warrant gains
Net gains (losses) on investment securities net of non-controlling interests*
39 Q3 2016 Corporate Overview and Financial Results October 31, 2016
($3)
$8 $3 $3
$22 $23
$11 $7
$37
$19
$46
$71 $71
$33
($13) ($1) ($2) ($7) ($10) ($16)
($58)
($23)
($1) ($21) ($26) ($30)
($12)
($35)
-$60
-$40
-$20
$0
$20
$40
$60
$80
$100
$120
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 9/30/16
Cumulative net gains (warrants minus ES NCOs) Net gains (losses) on warrants
Early-stage net charge-offs
Net Warrant Gains have Exceeded Early-Stage
Loan Losses Over Time
$99M
40 Q3 2016 Corporate Overview and Financial Results October 31, 2016
$492 $535
$603
$688
$777
$626
65.6%
62.2%
58.5% 56.9%
53.6% 52.4%
$0
$200
$400
$600
$800
2011 2012 2013 2014 2015 YTD 2016
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
41 Q3 2016 Corporate Overview and Financial Results October 31, 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. See “use of Non-GAAP Financial Measures” at the end of our most recent quarterly earnings release for further information regarding the
calculation and limitations of this measure.
2) March 31, 2015 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 March 31, 2015 have not been revised.
2
2
Non-GAAP core fee income (dollars in thousands)
Quarter ended
Dec 31,
2013
Mar 31,
2014
Jun 30,
2014
Sep 30,
2014
Dec 31,
2014
Mar 31,
2015
GAAP noninterest income $ 238,713 $ 310,225 $ 14,210 $ 80,167 $ 167,637 $ 123,524
Less: gains (losses) on investment securities, net 163,547 223,912
(57,320) 5,644 94,787 33,263
Less: gains on derivative instruments, net 14,382 24,167 12,775 26,538 33,365 39,729
Less: other noninterest income (loss) 11,791 11,200 8,762
(5,361)
(15,861)
(7,678)
Non-GAAP core fee income $ 48,993 $ 50,946 $ 49,993 $ 53,346 $ 55,346 $ 58,210
Non-GAAP core fee income (dollars in thousands)
Quarter ended
Jun 30,
2015
Sep 30,
2015
Dec 31,
2015
Mar 31,
2016
Jun 30,
2016
Sep 30,
2016
GAAP noninterest income $ 126,287 $ 108,477 $ 114,506 $ 86,134 $ 112,776 $ 144,140
Less: gains (losses) on investment securities, net 24,975 18,768 12,439
(4,684) 23,270 23,178
Less: gains (losses)on derivative instruments, net 16,317 10,244 17,515
(1,695) 8,798 19,744
Less: other noninterest income (loss) 18,916 11,077 11,847 15,971 6,254 20,692
Non-GAAP core fee income $ 66,079 $ 68,388 $ 72,705 $ 76,542 $ 74,454 $ 80,526
2
42 Q3 2016 Corporate Overview and Financial Results October 31, 2016
* See “use of Non-GAAP Financial Measures” at the end of our most recent quarterly earnings release for further information regarding the calculation
and limitations of this measure.
Non-marketable securities
Non-GAAP reconciliation*
Non-GAAP non-marketable securities, net of non-controlling interests (dollars in
thousands) September 30, 2016
GAAP non-marketable securities 625,178$
Less: amounts attributable to non-controlling interests 121,397
Non-GAAP non-marketable securities, net of non-controlling interests 503,781$
Composition of non-GAAP non-marketable securities, net of non-controlling
interests September 30, 2016
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments 41,236$
Other venture capital investments 218
Other securities (fair value accounting) 126
Non-marketable securities (equity method accounting):
Venture capital and private equity fund investments 66,387
Debt funds 18,971
China Joint Venture Investment 77,817
Other investments 50,605
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments 115,113
Other investments 26,834
Investments in qualified affordable housing projects 106,474
Total non-marketable and other securities 503,781$
43 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Net gains (losses) on investment securities
Non-GAAP reconciliation1
Non-GAAP net gains (losses) on investment
securities (dollars in thousands)
Quarter ended
Dec 31,
2013
Mar 31,
2014
Jun 30,
2014
Sep 30,
2014
Dec 31,
2014
Mar 31,
2015
GAAP net gains (losses) on investment
securities $ 163,547 $ 223,912
$ (57,320) $ 5,644 $ 94,787 $ 33,263
Less: income (losses) attributable to
noncontrolling interests, including carried
interest
137,405
186,552
(35,240)
6,757
78,225
14,171
Non-GAAP net gains (losses) on investment
securities, net of noncontrolling interests $ 26,142 $ 37,360
$ (22,080)
$ (1,113) $ 16,562 $ 19,092
Non-GAAP net gains (losses) on investment
securities (dollars in thousands)
Quarter ended
Jun 30,
2015
Sep 30,
2015
Dec 31,
2015
Mar 31,
2016
Jun 30,
2016
Sep 30,
2016
GAAP net gains (losses) on investment
securities $ 24,975 $ 18,768 $ 12,439
$ (4,684) $ 23,270 $ 23,178
Less: income (losses) attributable to
noncontrolling interests, including carried
interest
9,036
6,102
2,803
(2,716)
1,622
4,745
Non-GAAP net gains (losses) on investment
securities, net of noncontrolling interests $ 15,939 $ 12,666 $ 9,636
$ (1,968) $ 21,648 $ 18,433
1) See “use of Non-GAAP Financial Measures” at the end of our most recent quarterly earnings release for further information regarding the
calculation and limitations of this measure.
44 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Non-GAAP tangible common equity and tangible assets (dollars in
thousands, except ratios)
Year ended December 31,
Quarter ended
Mar 31, Jun 30, Sep 30,
2014 2 2015 2016 2016 2016
GAAP SVBFG stockholders’ equity $ 2,813,072 $ 3,198,134 $ 3,381,044 $ 3,505,578 $ 3,593,051,
Less: Intangible assets - - - - -
Tangible common equity (TCE) $ 2,813,072 $ 3,198,134 $ 3,381,044 $ 3,505,578 $ 3, 593,051
GAAP Total assets $ 39,337,869 $ 44,686,703 $ 43,573,902 $ 43,132,654 $ 43,274,037
Less: Intangible assets - - - - -
Tangible assets (TA) $ 39,337,869 $ 44,686,703 $ 43,573,902 $ 43,132,654 $ 43,274,037
Risk-weighted assets (RWA) $ 21,755,091 $ 25,919,594 $ 26,382,154 $ 27,145,857 $ 27,407,756
Tangible common equity to tangible assets 7.15% 7.16% 7.76% 8.13% 8.30%
Tangible common equity to risk-weighted assets
12.93% 12.34% 12.82% 12.91% 13.11%
Non-GAAP tangible common equity and tangible assets (dollars in
thousands, except ratios)
Year ended December 31,
Quarter ended
Mar 31, Jun 30, Sep 30,
2014 2 2015 2016 2016 2016
Tangible common equity (TCE) $ 2,399,411 $ 3,059,045 $ 3,246,536 $ 3,359,097 $ 3,405,028
Tangible assets (TA) $ 37,607,973 $ 44,045,967 $ 42,990,146 $ 42,522,293 $ 42,651,702
Risk-weighted assets (RWA) $ 21,450,480 $ 24,301,043 $ 24,922,140 $ 25,691,978 $ 25,909,301
Tangible common equity to tangible assets 6.38% 6.95% 7.55% 7.90% 7.98%
Tangible common equity to risk-weighted assets 11.19% 12.59% 13.03% 13.07% 13.14%
1) See “use of Non-GAAP Financial Measures” at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this
measure.
2) Amounts, except risk-weighted assets, have been revised to reflect the 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
45 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Non-interest income1
Non-GAAP reconciliation
1) See “use of Non-GAAP Financial Measures” at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this
measure.
2) 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).
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
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
Sep 30,
2016
GAAP non-interest income $ 238,713 $ 310,225 $ 14,210 $ 80,167 $ 167,637 $ 123,524 $ 126,287 $ 108,477 $ 114,506 $ 86,134 $ 112,776 $ 144,140
Less: income (losses) attributable
to non-controlling interests,
including carried interests 137,833 186,718 (35,325) 4,911 77,320 14,164 8,556 6,343 2,673 (2,671) 1,619 4,679
Non-GAAP non-interest income,
net of non-controlling interests 100,880 123,507 49,535 75,256 90,317 109,360 117,731 102,134 111,833 88,805 111,157 139,461
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 $ 100,880 $ 123,507 $ 49,535 $ 75,256 $ 104,251 $ 109,360 $ 117,731 $ 102,134 $ 111,833 $ 88,805 $ 111,157 $ 139,461
2
46 Q3 2016 Corporate Overview and Financial Results October 31, 2016
Non-GAAP operating efficiency ratio, net of non-controlling interests1
Non-GAAP reconciliation
(Dollars in thousands, except ratios)
Year ended December 31, YTD
Sep 30,
2011 2012 2013 2 2014 2 2015 2016
GAAP noninterest expense $ 500,628 $ 545,998 $ 615,244 $ 707,180 $ 778,016 $ 626,212
Less: amounts attributable to noncontrolling interests 11,567 11,336 12,714 18,867 828 284
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 $ 625,928
GAAP net interest income $ 526,277 $ 617,864 $ 697,344 $ 856,595 $ 1,006,425 $ 853,918
Adjustments for taxable equivalent basis 1,951 1,919 1,724 1,689 1,564 912
Non-GAAP taxable equivalent net interest income 528,228 619,783 699,068 858,284 1,007,989 854,830
Less: income (losses) attributable to noncontrolling
interests 122 106 76 33 8 62
Non-GAAP taxable equivalent net interest income, net of
noncontrolling interests $ 528,106 $ 619,677 $ 698,992 $ 858,251 $ 1,007,981 $ 854,768
GAAP noninterest income 382,332 335,546 673,206 572,239 472,794 343,050
Non-GAAP noninterest income, net of noncontrolling
interests 222,682 240,408 330,302 352,549 441,058 339,423
GAAP total revenue $ 908,609 $ 953,410 $ 1,370,550 $ 1,428,834 $ 1,479,219 $ 1,196,968
Non-GAAP taxable equivalent revenue, net of
noncontrolling interests $ 750,788 $ 860,085 $ 1,029,294 $ 1,210,800 $ 1,449,039 $ 1,194,191
GAAP operating efficiency ratio 55.10% 57.27% 44.89% 49.49% 52.60% 52.32%
Non-GAAP operating efficiency ratio 65.56% 62.16% 58.54% 56.85% 53.63% 52.41%
1) See “use of Non-GAAP Financial Measures” at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this
measure.
2) 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 qualified
affordable housing projects (ASU 2014-01).
47 Q3 2016 Corporate Overview and Financial Results October 31, 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