Stockholders' Equity and EPS

9 Months Ended

Sep. 30, 2018

Equity and Earnings Per Share [Abstract]

Accumulated Other Comprehensive Income

The following table summarizes the items reclassified out of accumulated other comprehensive income into the Consolidated Statements of Income (unaudited) for the three and nine months ended September 30, 2018 and 2017:



		Three months ended September 30,					Nine months ended September 30,
(Dollars in thousands)	Income Statement Location	2018		2017			2018		2017
Reclassification adjustment for losses (gains) included in net income (1)	Gains on investment securities, net	$	—	$	101		$	—	$	(384	)
Related tax (benefit) expense (1)	Income tax expense	—		(41		)	—		157
Total reclassification adjustment for losses (gains) included in net income, net of tax (1)		$	—	$	60		$	—	$	(227	)


(1)	See "Adoption of New Accounting Standards" in Note 1—“Basis of Presentation” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional details.

EPS

Basic EPS is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issuable for stock options and restricted stock units outstanding under our 2006 Equity Incentive Plan and our ESPP. Potentially dilutive common shares are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive. The following is a reconciliation of basic EPS to diluted EPS for the three and nine months ended September 30, 2018 and 2017:



	Three months ended September 30,				Nine months ended September 30,
(Dollars and shares in thousands, except per share amounts)	2018		2017		2018		2017
Numerator:
Net income available to common stockholders	$	274,817	$	148,620	$	707,576	$	373,296
Denominator:
Weighted average common shares outstanding—basic	53,235		52,705		53,062		52,530
Weighted average effect of dilutive securities:
Stock options and ESPP	383		343		404		381
Restricted stock units	301		257		334		319
Weighted average common shares outstanding—diluted	53,919		53,305		53,800		53,230
Earnings per common share:
Basic	$	5.16	$	2.82	$	13.33	$	7.11
Diluted	5.10		2.79		13.15		7.01

The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation due to the antidilutive effect for the three and nine months ended September 30, 2018 and 2017:



	Three months ended September 30,		Nine months ended September 30,
(Shares in thousands)	2018	2017	2018	2017
Stock options	86	112	49	61
Restricted stock units	5	5	71	2
Total	91	117	120	63

Consolidated Statement of Changes in Equity

The following table summarizes the changes in our consolidated equity for the three months ended September 30, 2018 and 2017:



	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Total SVBFG Stockholders’ Equity			Noncontrolling Interests			Total Equity
(Dollars in thousands)	Shares	Amount		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Total SVBFG Stockholders’ Equity			Noncontrolling Interests			Total Equity
Balance at June 30, 2017	52,684,159	$	53	$	1,283,485	$	2,601,007	$	14,890		$	3,899,435		$	140,600		$	4,040,035
Common stock issued under employee benefit plans, net of restricted stock cancellations	39,495	—		2,370		—		—			2,370			—			2,370
Net income	—	—		—		148,620		—			148,620			5,498			154,118
Capital calls and distributions, net	—	—		—		—		—			—			(8,613		)	(8,613		)
Net change in unrealized gains and losses on AFS securities, net of tax	—	—		—		—		556			556			—			556
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax	—	—		—		—		(953		)	(953		)	—			(953		)
Foreign currency translation adjustments, net of tax	—	—		—		—		1,141			1,141			—			1,141
Share-based compensation, net	—	—		8,644		—		—			8,644			—			8,644
Balance at September 30, 2017	52,723,654	$	53	$	1,294,499	$	2,749,627	$	15,634		$	4,059,813		$	137,485		$	4,197,298
Balance at June 30, 2018	53,210,627	$	53	$	1,346,586	$	3,397,879	$	(86,865	)	$	4,657,653		$	147,188		$	4,804,841
Common stock issued under employee benefit plans, net of restricted stock cancellations	39,628	—		1,943		—		—			1,943			—			1,943
Net income	—	—		—		274,817		—			274,817			6,548			281,365
Capital calls and distributions, net	—	—		—		—		—			—			(8,060		)	(8,060		)
Net change in unrealized gains and losses on AFS securities, net of tax	—	—		—		—		(17,908		)	(17,908		)	—			(17,908		)
Amortization of unrealized holding gains on securities transferred from AFS to HTM, net of tax	—	—		—		—		(1,283		)	(1,283		)	—			(1,283		)
Foreign currency translation adjustments, net of tax	—	—		—		—		(2,354		)	(2,354		)	—			(2,354		)
Share-based compensation, net	—	—		11,501		—		—			11,501			—			11,501
Balance at September 30, 2018	53,250,255	$	53	$	1,360,030	$	3,672,696	$	(108,410	)	$	4,924,369		$	145,676		$	5,070,045