Delaware | 000-15637 | 91-1962278 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.142-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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. |
Date: January 24, 2019 | SVB FINANCIAL GROUP | |||||
By: | /s/ KAMRAN HUSAIN | |||||
Name: | Kamran Husain | |||||
Title: | Chief Accounting Officer and Principal Accounting Officer |
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 | |||||||
January 24, 2019 | ||||||||
NASDAQ: SIVB |
• | Average loan balances of $27.5 billion, an increase of $1.2 billion (or 4.4 percent). |
• | Period-end loan balances of $28.3 billion, an increase of $0.8 billion (or 3.1 percent). |
• | Average fixed income investment securities of $24.5 billion, a decrease of $1.0 billion (or 4.0 percent). |
• | Period-end fixed income investment securities of $23.3 billion, a decrease of $1.7 billion (or 6.8 percent). |
• | Average total client funds (on-balance sheet deposits and off-balance sheet client investment funds) increased $5.5 billion (or 4.3 percent) to $134.1 billion. |
• | Period-end total client funds increased $4.6 billion (or 3.5 percent) to $135.3 billion. |
• | Net interest income (fully taxable equivalent basis) of $517.4 million, an increase of $21.3 million (or 4.3 percent). |
• | Provision for credit losses of $13.6 million, compared to $17.2 million. |
• | Net loan charge-offs of $13.9 million, or 20 basis points of average total gross loans (annualized), compared to $20.0 million, or 30 basis points. |
• | Net gains on investment securities, of $10.7 million, compared to $32.2 million. Non-GAAP net gains on investment securities, net of noncontrolling interests, were $1.8 million, compared to $25.6 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”) |
• | Net gains on equity warrant assets of $16.7 million, compared to $34.1 million. |
• | Noninterest income of $186.7 million, a decrease of $23.4 million (or 11.1 percent). Non-GAAP core fee income increased $14.3 million (or 10.9 percent) to $146.0 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”) |
• | Noninterest expense of $307.6 million, a decrease of $1.8 million (or 0.6 percent). |
• | Effective tax rate of 28.3 percent compared to 25.8 percent. |
• | Repurchase and retirement of 715,207 shares of our common stock totaling $147.1 million. |
(Dollars in millions, except share data, employees and ratios) | Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Income statement: | ||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 4.96 | $ | 5.10 | $ | 4.42 | $ | 3.63 | $ | 2.19 | $ | 18.11 | $ | 9.20 | ||||||||||||||
Net income available to common stockholders | 266.3 | 274.8 | 237.8 | 195.0 | 117.2 | 973.8 | 490.5 | |||||||||||||||||||||
Net interest income | 514.5 | 493.2 | 466.4 | 419.9 | 393.7 | 1,894.0 | 1,420.4 | |||||||||||||||||||||
Provision for credit losses | 13.6 | 17.2 | 29.1 | 28.0 | 22.2 | 87.9 | 92.3 | |||||||||||||||||||||
Noninterest income | 186.7 | 210.1 | 192.7 | 155.5 | 152.3 | 745.0 | 557.2 | |||||||||||||||||||||
Noninterest expense | 307.6 | 309.4 | 305.7 | 265.4 | 264.0 | 1,188.2 | 1,010.7 | |||||||||||||||||||||
Non-GAAP core fee income (1) | 146.0 | 131.7 | 123.1 | 115.0 | 106.4 | 515.9 | 379.0 | |||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (1) | 177.9 | 203.4 | 183.2 | 142.5 | 144.5 | 707.0 | 527.8 | |||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests (1) | 307.4 | 309.3 | 305.5 | 265.4 | 263.7 | 1,187.7 | 1,009.8 | |||||||||||||||||||||
Fully taxable equivalent: | ||||||||||||||||||||||||||||
Net interest income (2) | $ | 517.4 | $ | 496.1 | $ | 468.5 | $ | 421.2 | $ | 395.3 | $ | 1,903.2 | $ | 1,423.4 | ||||||||||||||
Net interest margin | 3.69 | % | 3.62 | % | 3.59 | % | 3.38 | % | 3.20 | % | 3.57 | % | 3.05 | % | ||||||||||||||
Balance sheet: | ||||||||||||||||||||||||||||
Average total assets | $ | 57,592.3 | $ | 56,465.0 | $ | 54,420.6 | $ | 52,367.2 | $ | 50,799.4 | $ | 55,229.1 | $ | 48,380.3 | ||||||||||||||
Average loans, net of unearned income | 27,477.0 | 26,331.4 | 24,858.5 | 23,807.2 | 22,444.1 | 25,630.5 | 21,159.4 | |||||||||||||||||||||
Average available-for-sale securities | 8,793.7 | 9,589.9 | 10,048.4 | 10,748.5 | 12,081.0 | 9,789.2 | 12,424.1 | |||||||||||||||||||||
Average held-to-maturity securities | 15,691.1 | 15,916.7 | 15,112.2 | 13,234.3 | 11,703.0 | 14,997.8 | 9,984.6 | |||||||||||||||||||||
Average noninterest-bearing demand deposits | 40,106.9 | 40,625.8 | 39,814.5 | 37,950.8 | 36,962.0 | 39,633.1 | 35,235.2 | |||||||||||||||||||||
Average interest-bearing deposits | 8,980.3 | 8,466.5 | 8,157.5 | 8,155.3 | 7,811.4 | 8,442.2 | 7,509.9 | |||||||||||||||||||||
Average total deposits | 49,087.2 | 49,092.2 | 47,972.0 | 46,106.1 | 44,773.4 | 48,075.3 | 42,745.1 | |||||||||||||||||||||
Average short-term borrowings | 1,580.0 | 745.2 | 121.1 | 112.1 | 75.2 | 643.9 | 48.5 | |||||||||||||||||||||
Average long-term debt | 696.3 | 696.1 | 695.8 | 695.6 | 743.2 | 695.9 | 766.9 | |||||||||||||||||||||
Period-end total assets | 56,928.0 | 58,139.7 | 55,867.7 | 53,500.8 | 51,214.5 | 56,928.0 | 51,214.5 | |||||||||||||||||||||
Period-end loans, net of unearned income | 28,338.3 | 27,494.9 | 25,996.2 | 24,587.9 | 23,106.3 | 28,338.3 | 23,106.3 | |||||||||||||||||||||
Period-end available-for-sale securities | 7,790.0 | 9,087.6 | 9,593.4 | 10,080.4 | 11,120.7 | 7,790.0 | 11,120.7 | |||||||||||||||||||||
Period-end held-to-maturity securities | 15,487.4 | 15,899.7 | 15,898.3 | 14,548.9 | 12,663.5 | 15,487.4 | 12,663.5 | |||||||||||||||||||||
Period-end non-marketable and other equity securities | 941.1 | 896.2 | 852.5 | 824.9 | 651.1 | 941.1 | 651.1 | |||||||||||||||||||||
Period-end noninterest-bearing demand deposits | 39,103.4 | 40,473.8 | 40,593.3 | 37,515.4 | 36,655.5 | 39,103.4 | 36,655.5 | |||||||||||||||||||||
Period-end interest-bearing deposits | 10,225.5 | 8,122.3 | 8,294.0 | 8,421.2 | 7,598.6 | 10,225.5 | 7,598.6 | |||||||||||||||||||||
Period-end total deposits | 49,328.9 | 48,596.1 | 48,887.3 | 45,936.5 | 44,254.1 | 49,328.9 | 44,254.1 | |||||||||||||||||||||
Period-end short-term borrowings | 631.4 | 2,631.3 | 417.2 | 1,102.1 | 1,033.7 | 631.4 | 1,033.7 | |||||||||||||||||||||
Period-end long-term debt | 696.5 | 696.2 | 696.0 | 695.7 | 695.5 | 696.5 | 695.5 | |||||||||||||||||||||
Off-balance sheet: | ||||||||||||||||||||||||||||
Average client investment funds | $ | 85,038.8 | $ | 79,560.8 | $ | 71,311.5 | $ | 64,377.7 | $ | 57,589.1 | $ | 75,072.2 | $ | 51,525.5 | ||||||||||||||
Period-end client investment funds | 85,983.8 | 82,085.0 | 75,773.7 | 67,739.2 | 60,329.7 | 85,983.8 | 60,329.7 | |||||||||||||||||||||
Total unfunded credit commitments | 18,913.0 | 18,539.5 | 18,728.4 | 17,170.8 | 17,462.5 | 18,913.0 | 17,462.5 | |||||||||||||||||||||
Earnings ratios: | ||||||||||||||||||||||||||||
Return on average assets (annualized) (3) | 1.83 | % | 1.93 | % | 1.75 | % | 1.51 | % | 0.92 | % | 1.76 | % | 1.01 | % | ||||||||||||||
Return on average SVBFG stockholders’ equity (annualized)(4) | 20.61 | 22.46 | 20.82 | 18.12 | 11.09 | 20.57 | 12.38 | |||||||||||||||||||||
Asset quality ratios: | ||||||||||||||||||||||||||||
Allowance for loan losses as a % of total gross loans | 0.99 | % | 1.03 | % | 1.10 | % | 1.11 | % | 1.10 | % | 0.99 | % | 1.10 | % | ||||||||||||||
Allowance for loan losses for performing loans as a % of total gross performing loans | 0.86 | 0.86 | 0.90 | 0.93 | 0.92 | 0.86 | 0.92 |
Gross loan charge-offs as a % of average total gross loans (annualized) | 0.28 | 0.33 | 0.25 | 0.18 | 0.27 | 0.26 | 0.31 | |||||||||||||||||||||
Net loan charge-offs as a % of average total gross loans (annualized) | 0.20 | 0.30 | 0.22 | 0.15 | 0.23 | 0.22 | 0.27 | |||||||||||||||||||||
Other ratios: | ||||||||||||||||||||||||||||
GAAP operating efficiency ratio (5) | 43.87 | % | 44.00 | % | 46.39 | % | 46.13 | % | 48.36 | % | 45.02 | % | 51.11 | % | ||||||||||||||
Non-GAAP operating efficiency ratio (1) | 44.22 | 44.22 | 46.88 | 47.09 | 48.85 | 45.50 | 51.76 | |||||||||||||||||||||
Non-GAAP core operating efficiency ratio (1) | 45.66 | 48.58 | 50.62 | 48.51 | 50.96 | 48.27 | 54.38 | |||||||||||||||||||||
SVBFG CET 1 risk-based capital ratio | 13.41 | 13.28 | 12.92 | 12.87 | 12.78 | 13.41 | 12.78 | |||||||||||||||||||||
Bank CET 1 risk-based capital ratio | 12.41 | 11.98 | 11.76 | 11.90 | 12.06 | 12.41 | 12.06 | |||||||||||||||||||||
SVBFG total risk-based capital ratio | 14.45 | 14.34 | 14.03 | 13.99 | 13.96 | 14.45 | 13.96 | |||||||||||||||||||||
Bank total risk-based capital ratio | 13.32 | 12.91 | 12.72 | 12.88 | 13.04 | 13.32 | 13.04 | |||||||||||||||||||||
SVBFG tier 1 leverage ratio | 9.06 | 8.99 | 8.81 | 8.67 | 8.34 | 9.06 | 8.34 | |||||||||||||||||||||
Bank tier 1 leverage ratio | 8.10 | 7.82 | 7.72 | 7.69 | 7.56 | 8.10 | 7.56 | |||||||||||||||||||||
Period-end loans, net of unearned income, to deposits ratio | 57.45 | 56.58 | 53.18 | 53.53 | 52.21 | 57.45 | 52.21 | |||||||||||||||||||||
Average loans, net of unearned income, to average deposits ratio | 55.98 | 53.64 | 51.82 | 51.64 | 50.13 | 53.31 | 49.50 | |||||||||||||||||||||
Book value per common share (6) | $ | 97.29 | $ | 92.48 | $ | 87.53 | $ | 83.43 | $ | 79.11 | $ | 97.29 | $ | 79.11 | ||||||||||||||
Other statistics: | ||||||||||||||||||||||||||||
Average full-time equivalent ("FTE") employees | 2,873 | 2,778 | 2,591 | 2,498 | 2,433 | 2,685 | 2,396 | |||||||||||||||||||||
Period-end full-time equivalent ("FTE") employees | 2,900 | 2,836 | 2,626 | 2,512 | 2,438 | 2,900 | 2,438 |
(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 the most closely related GAAP measures 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 21.0 percent for 2018 and 35.0 percent for 2017. The taxable equivalent adjustments were $3.0 million for the quarter ended December 31, 2018, $2.9 million for the quarter ended September 30, 2018, $2.0 million for the quarter ended June 30, 2018, $1.4 million for the quarter ended March 31, 2018 and $1.6 million for the quarter ended December 31, 2017. The taxable equivalent adjustments were $9.2 million and $3.1 million for the years ended December 31, 2018 and December 31, 2017, respectively. |
(3) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average assets. |
(4) | Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average SVB Financial Group ("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. |
• | An increase in interest income from loans of $26.4 million to $378.8 million for the fourth quarter of 2018. The increase was reflective primarily of the impact of $1.2 billion in average loan growth, higher interest rates compared to the third quarter of 2018, and higher loan fee income. Overall loan yields increased 16 basis points, to 5.47 percent. Gross loan yields, excluding loan interest recoveries and loan fees, increased 15 basis points to 4.96 percent, as compared to 4.81 percent for the third quarter of 2018, reflective primarily of the full-quarter effect of the Federal Funds target rate increase in September 2018 as well as higher LIBOR rates. Benefits from the rate increases on our gross loan yields in the fourth quarter of 2018 continue to be impacted by pricing competition. Loan fee yields increased 1 basis point, or $2.7 million, primarily due to higher fee income from increased levels of loan prepayments in the quarter, |
• | An increase of $7.0 million in interest income from short-term investment securities reflective primarily of a $1.1 billion increase in average interest-earning Federal Reserve cash balances and higher market rates, |
• | A decrease in interest income from our fixed income investment securities of $3.7 million to $152.0 million for the fourth quarter of 2018. The decrease was reflective of lower average fixed income securities of $1.0 billion |
• | An increase in interest expense of $8.3 million, due to an increase in our average short-term borrowings balance during the fourth quarter of 2018, due primarily to fund loan growth as a result of the timing of loan funding and deposit activities towards the end of the third quarter of 2018, as well as an increase in interest paid on our interest-bearing money market deposits due to market rate adjustments. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands, except ratios) | December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||
Allowance for loan losses, beginning balance | $ | 285,713 | $ | 286,709 | $ | 249,010 | $ | 255,024 | $ | 225,366 | ||||||||||
Provision for loan losses | 10,204 | 19,436 | 18,666 | 84,292 | 85,939 | |||||||||||||||
Gross loan charge-offs | (19,697 | ) | (22,205 | ) | (15,233 | ) | (67,917 | ) | (66,682 | ) | ||||||||||
Loan recoveries | 5,758 | 2,164 | 2,383 | 11,636 | 8,538 | |||||||||||||||
Foreign currency translation adjustments | (1,075 | ) | (391 | ) | 198 | (2,132 | ) | 1,863 | ||||||||||||
Allowance for loan losses, ending balance | $ | 280,903 | $ | 285,713 | $ | 255,024 | $ | 280,903 | $ | 255,024 | ||||||||||
Allowance for unfunded credit commitments, beginning balance | 51,808 | 54,104 | 48,172 | 51,770 | 45,265 | |||||||||||||||
Provision for (reduction of) unfunded credit commitments | 3,440 | (2,262 | ) | 3,576 | 3,578 | 6,365 | ||||||||||||||
Foreign currency translation adjustments | (65 | ) | (34 | ) | 22 | (165 | ) | 140 | ||||||||||||
Allowance for unfunded credit commitments, ending balance (1) | $ | 55,183 | $ | 51,808 | $ | 51,770 | $ | 55,183 | $ | 51,770 | ||||||||||
Ratios and other information: | ||||||||||||||||||||
Provision for loan losses as a percentage of period-end total gross loans (annualized) | 0.14 | % | 0.28 | % | 0.32 | % | 0.30 | % | 0.37 | % | ||||||||||
Gross loan charge-offs as a percentage of average total gross loans (annualized) | 0.28 | 0.33 | 0.27 | 0.26 | 0.31 | |||||||||||||||
Net loan charge-offs as a percentage of average total gross loans (annualized) | 0.20 | 0.30 | 0.23 | 0.22 | 0.27 | |||||||||||||||
Allowance for loan losses as a percentage of period-end total gross loans | 0.99 | 1.03 | 1.10 | 0.99 | 1.10 | |||||||||||||||
Provision for credit losses | $ | 13,644 | $ | 17,174 | $ | 22,242 | $ | 87,870 | $ | 92,304 | ||||||||||
Period-end total gross loans | 28,511,312 | 27,668,829 | 23,254,153 | 28,511,312 | 23,254,153 | |||||||||||||||
Average total gross loans | 27,646,940 | 26,497,171 | 22,583,693 | 25,790,949 | 21,287,336 | |||||||||||||||
Allowance for loan losses for nonaccrual loans | 37,941 | 49,992 | 41,793 | 37,941 | 41,793 | |||||||||||||||
Nonaccrual loans | 94,142 | 115,162 | 119,259 | 94,142 | 119,259 |
(1) | The “allowance for unfunded credit commitments” is included as a component of “other liabilities.” |
• | A provision for loan losses of $10.2 million, which reflects primarily an increase of $7.2 million in additional reserves for period-end loan growth, $5.0 million in net new specific reserves for nonaccrual loans and $2.7 million for charge-offs not specifically reserved for, partially offset by a decrease of $5.8 million from loan recoveries, and |
• | A provision for unfunded credit commitments of $3.4 million, driven primarily by growth in unfunded credit commitments of $0.4 billion. |
◦ | Gains of $7.4 million from our managed funds of funds portfolio, related primarily to unrealized valuation increases in private company investments, partially offset by unrealized losses in public company investments held by the funds in the portfolio, and |
◦ | Gains of $4.2 million from our managed direct venture funds portfolio, related primarily to net unrealized valuation increases in private company investments held by the funds in the portfolio, offset by |
◦ | Losses of $7.4 million from our public equity securities portfolio primarily attributable to $5.2 million in unrealized losses related to a decline in the stock price of one company that had an IPO during the third quarter of 2018, and |
◦ | Losses of $2.4 million from our strategic and other investments, comprised primarily of losses on the write-off of one direct equity investment partially offset by net unrealized valuation increases in our strategic venture capital funds. |
Three months ended December 31, 2018 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Managed Funds of Funds | Managed Direct Venture Funds | Public Equity Securities | Sales of AFS Debt Securities | Debt Funds | Strategic and Other Investments | Total | |||||||||||||||||||||
GAAP gains (losses) on investment securities, net | $ | 12,466 | $ | 8,125 | $ | (7,388 | ) | $ | (740 | ) | $ | 641 | $ | (2,375 | ) | $ | 10,729 | |||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 5,034 | 3,931 | — | — | — | — | 8,965 | |||||||||||||||||||||
Non-GAAP gains (losses) on investment securities, net of noncontrolling interests | $ | 7,432 | $ | 4,194 | $ | (7,388 | ) | $ | (740 | ) | $ | 641 | $ | (2,375 | ) | $ | 1,764 |
Three months ended September 30, 2018 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Managed Funds of Funds | Managed Direct Venture Funds | Public Equity Securities | Sales of AFS Debt Securities | Debt Funds | Strategic and Other Investments | Total | |||||||||||||||||||||
GAAP gains on investment securities, net | $ | 12,949 | $ | 1,863 | $ | 4,372 | $ | — | $ | 1,473 | $ | 11,536 | $ | 32,193 | ||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 5,914 | 727 | — | — | — | — | 6,641 | |||||||||||||||||||||
Non-GAAP gains on investment securities, net of noncontrolling interests | $ | 7,035 | $ | 1,136 | $ | 4,372 | $ | — | $ | 1,473 | $ | 11,536 | $ | 25,552 |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands) | December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||
Equity warrant assets: | ||||||||||||||||||||
Gains on exercises, net | $ | 5,102 | $ | 18,287 | $ | 9,206 | $ | 58,186 | $ | 48,275 | ||||||||||
Cancellations and expirations | (2,860 | ) | (1,432 | ) | (568 | ) | (5,964 | ) | (4,422 | ) | ||||||||||
Changes in fair value, net | 14,507 | 17,286 | 3,485 | 36,920 | 10,702 | |||||||||||||||
Total net gains on equity warrant assets | $ | 16,749 | $ | 34,141 | $ | 12,123 | $ | 89,142 | $ | 54,555 |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands) | December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||
Non-GAAP core fee income: | ||||||||||||||||||||
Foreign exchange fees | $ | 38,252 | $ | 32,656 | $ | 33,734 | $ | 138,812 | $ | 115,760 | ||||||||||
Credit card fees | 25,333 | 24,121 | 20,444 | 94,072 | 76,543 | |||||||||||||||
Deposit service charges | 20,016 | 19,588 | 15,669 | 76,097 | 58,715 | |||||||||||||||
Client investment fees | 41,768 | 36,265 | 18,565 | 130,360 | 56,136 | |||||||||||||||
Lending related fees | 11,011 | 10,675 | 10,391 | 41,949 | 43,265 | |||||||||||||||
Letters of credit and standby letters of credit fees | 9,662 | 8,409 | 7,593 | 34,600 | 28,544 | |||||||||||||||
Total Non-GAAP core fee income | $ | 146,042 | $ | 131,714 | $ | 106,396 | $ | 515,890 | $ | 378,963 |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands, except employees) | December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||
Compensation and benefits: | ||||||||||||||||||||
Salaries and wages | $ | 90,139 | $ | 84,962 | $ | 69,461 | $ | 324,971 | $ | 277,148 | ||||||||||
Incentive compensation plans | 50,478 | 55,531 | 40,048 | 200,871 | 144,626 | |||||||||||||||
Employee stock ownership plan ("ESOP") | 1,438 | 1,844 | 987 | 6,435 | 4,720 | |||||||||||||||
Other employee incentives and benefits (1) | 41,727 | 53,100 | 46,494 | 194,703 | 179,908 | |||||||||||||||
Total compensation and benefits | $ | 183,782 | $ | 195,437 | $ | 156,990 | $ | 726,980 | $ | 606,402 | ||||||||||
Period-end full-time equivalent employees | 2,900 | 2,836 | 2,438 | 2,900 | 2,438 | |||||||||||||||
Average full-time equivalent employees | 2,873 | 2,778 | 2,433 | 2,685 | 2,396 |
(1) | Other employee incentives and benefits expense includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), warrant incentive and retention plans, agency fees and other employee-related expenses. |
• | An increase of $5.2 million in salaries and wages reflective primarily of an increase in the number of average full-time equivalent employees ("FTE") by 95 to 2,873 FTEs for the fourth quarter of 2018, |
• | A decrease of $5.1 million in incentive compensation expense reflective primarily of the change in number of period-end, bonus-eligible FTE, and |
• | A decrease of $11.4 million in other employee incentives and benefits due primarily from a $5.9 million decrease in our deferred compensation plan related to the decline in market valuations in the underlying investment securities in the plan and a $4.1 million decrease in warrant incentive plan expense due to lower warrant gains on equity warrant assets in the fourth quarter of 2018 compared to the third quarter of 2018. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands) | December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||
Net interest income (1) | $ | (1 | ) | $ | (10 | ) | $ | (7 | ) | $ | (30 | ) | $ | (33 | ) | |||||
Noninterest income (1) | (2,215 | ) | (2,749 | ) | (6,730 | ) | (22,342 | ) | (25,789 | ) | ||||||||||
Noninterest expense (1) | 173 | 154 | 296 | 522 | 813 | |||||||||||||||
Carried interest allocation (2) | (6,624 | ) | (3,943 | ) | (1,013 | ) | (15,658 | ) | (3,663 | ) | ||||||||||
Net income attributable to noncontrolling interests | $ | (8,667 | ) | $ | (6,548 | ) | $ | (7,454 | ) | $ | (37,508 | ) | $ | (28,672 | ) |
(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 2019 outlook compared to 2018 results (as of January 24, 2019) | |
Average loan balances | Increase at a percentage rate in the mid-teens |
Average deposit balances | Increase at a percentage rate in the high single digits |
Net interest income (1) | Increase at a percentage rate in the high teens |
Net interest margin (1) | Between 3.80% and 3.90% |
Allowance for loan losses for total gross performing loans as a percentage of total gross performing loans | Comparable to 2018 levels |
Net loan charge-offs | Between 0.20% and 0.40% of average total gross loans |
Nonperforming loans as a percentage of total gross loans | Between 0.30% and 0.50% 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 |
Noninterest expense (excluding expenses related to noncontrolling interests) (3) (4) | Increase at a percentage rate in the mid-teens |
Effective tax rate (5) | Between 26.0% and 28.0% |
Current full year 2019 outlook compared to 2018 results, including expected results of SVB Leerink reflective of the completed acquisition on January 4, 2019. | |
Core fee income (foreign exchange fees, deposit service charges, credit card fees, lending related fees, client investment fees and letters of credit fees) plus investment banking revenue (2) (6) | Increase at a percentage rate in the high sixties |
Noninterest expense (excluding expenses related to noncontrolling interests) including investment banking expenses (3) (4) (6) | Increase at a percentage rate in the mid-thirties |
(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 2019 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 |
(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. |
(5) | Our outlook for our effective tax rate is based on management's current assumptions with respect to, among other things, the Company's earnings, state income tax levels, tax deductions and estimated performance-based compensation activity. |
(6) | Investment banking revenue and expenses consist of revenue generated and expenses incurred associated with the investment banking activities of SVB Leerink. |
• | market and economic conditions (including the general condition of the capital and equity markets, and IPO, M&A and financing activity levels) and the associated impact on us (including effects on client demand for our commercial and investment banking and other financial services, as well as on the valuations of our investments); |
• | changes in the volume and credit quality of our loans as well as volatility of our levels of nonperforming assets and charge-offs; |
• | 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 the levels of our loans, deposits and client investment fund balances; |
• | 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; |
• | variations from our expectations as to factors impacting the timing and level of employee share-based transactions; |
• | variations from our expectations as to factors impacting our estimate of our full-year effective tax rate; |
• | changes in applicable accounting standards and tax laws; and |
• | regulatory or legal changes or their impact on us. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in thousands, except share data) | December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 378,756 | $ | 352,353 | $ | 279,805 | $ | 1,358,480 | $ | 1,025,788 | ||||||||||
Investment securities: | ||||||||||||||||||||
Taxable | 137,903 | 142,075 | 117,365 | 541,605 | 412,133 | |||||||||||||||
Non-taxable | 11,110 | 10,748 | 3,011 | 34,616 | 5,714 | |||||||||||||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | 15,128 | 8,137 | 4,835 | 35,208 | 21,505 | |||||||||||||||
Total interest income | 542,897 | 513,313 | 405,016 | 1,969,909 | 1,465,140 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 10,897 | 8,042 | 2,458 | 29,306 | 8,676 | |||||||||||||||
Borrowings | 17,540 | 12,049 | 8,852 | 46,615 | 36,095 | |||||||||||||||
Total interest expense | 28,437 | 20,091 | 11,310 | 75,921 | 44,771 | |||||||||||||||
Net interest income | 514,460 | 493,222 | 393,706 | 1,893,988 | 1,420,369 | |||||||||||||||
Provision for credit losses | 13,644 | 17,174 | 22,242 | 87,870 | 92,304 | |||||||||||||||
Net interest income after provision for credit losses | 500,816 | 476,048 | 371,464 | 1,806,118 | 1,328,065 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Gains on investment securities, net | 10,729 | 32,193 | 15,765 | 88,094 | 64,603 | |||||||||||||||
Gains on equity warrant assets, net | 16,749 | 34,141 | 12,123 | 89,142 | 54,555 | |||||||||||||||
Foreign exchange fees | 38,252 | 32,656 | 33,734 | 138,812 | 115,760 | |||||||||||||||
Credit card fees | 25,333 | 24,121 | 20,444 | 94,072 | 76,543 | |||||||||||||||
Deposit service charges | 20,016 | 19,588 | 15,669 | 76,097 | 58,715 | |||||||||||||||
Client investment fees | 41,768 | 36,265 | 18,565 | 130,360 | 56,136 | |||||||||||||||
Lending related fees | 11,011 | 10,675 | 10,391 | 41,949 | 43,265 | |||||||||||||||
Letters of credit and standby letters of credit fees | 9,662 | 8,409 | 7,593 | 34,600 | 28,544 | |||||||||||||||
Other | 13,187 | 12,022 | 17,982 | 51,858 | 59,110 | |||||||||||||||
Total noninterest income | 186,707 | 210,070 | 152,266 | 744,984 | 557,231 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Compensation and benefits | 183,782 | 195,437 | 156,990 | 726,980 | 606,402 | |||||||||||||||
Professional services | 46,755 | 36,542 | 35,604 | 158,835 | 121,935 | |||||||||||||||
Premises and equipment | 20,342 | 19,858 | 18,000 | 77,918 | 71,753 | |||||||||||||||
Net occupancy | 14,155 | 13,694 | 12,960 | 54,753 | 48,397 | |||||||||||||||
Business development and travel | 12,182 | 12,712 | 11,065 | 48,180 | 41,978 | |||||||||||||||
FDIC and state assessments | 4,970 | 9,550 | 8,715 | 34,276 | 35,069 | |||||||||||||||
Correspondent bank fees | 3,513 | 3,513 | 3,206 | 13,713 | 12,976 | |||||||||||||||
Other | 21,893 | 18,139 | 17,475 | 73,538 | 72,145 | |||||||||||||||
Total noninterest expense | 307,592 | 309,445 | 264,015 | 1,188,193 | 1,010,655 | |||||||||||||||
Income before income tax expense | 379,931 | 376,673 | 259,715 | 1,362,909 | 874,641 | |||||||||||||||
Income tax expense | 105,000 | 95,308 | 135,051 | 351,561 | 355,463 | |||||||||||||||
Net income before noncontrolling interests | 274,931 | 281,365 | 124,664 | 1,011,348 | 519,178 | |||||||||||||||
Net income attributable to noncontrolling interests | (8,667 | ) | (6,548 | ) | (7,454 | ) | (37,508 | ) | (28,672 | ) | ||||||||||
Net income available to common stockholders | $ | 266,264 | $ | 274,817 | $ | 117,210 | $ | 973,840 | $ | 490,506 | ||||||||||
Earnings per common share—basic | $ | 5.01 | $ | 5.16 | $ | 2.22 | $ | 18.35 | $ | 9.33 | ||||||||||
Earnings per common share—diluted | 4.96 | 5.10 | 2.19 | 18.11 | 9.20 | |||||||||||||||
Weighted average common shares outstanding—basic | 53,125,046 | 53,235,090 | 52,761,821 | 53,077,952 | 52,588,266 | |||||||||||||||
Weighted average common shares outstanding—diluted | 53,684,512 | 53,918,973 | 53,501,851 | 53,771,457 | 53,305,899 |
(Dollars in thousands, except par value and share data) | December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 3,571,539 | $ | 3,819,141 | $ | 2,923,075 | ||||||
Available-for-sale securities, at fair value (cost $7,862,311, $9,236,301, and $11,131,008, respectively) | 7,790,043 | 9,087,609 | 11,120,664 | |||||||||
Held-to-maturity securities, at cost (fair value $15,188,236, $15,372,238, and $12,548,280, respectively) | 15,487,442 | 15,899,726 | 12,663,455 | |||||||||
Non-marketable and other equity securities (1) | 941,104 | 896,249 | 651,053 | |||||||||
Investment securities | 24,218,589 | 25,883,584 | 24,435,172 | |||||||||
Loans, net of unearned income | 28,338,280 | 27,494,915 | 23,106,316 | |||||||||
Allowance for loan losses | (280,903 | ) | (285,713 | ) | (255,024 | ) | ||||||
Net loans | 28,057,377 | 27,209,202 | 22,851,292 | |||||||||
Premises and equipment, net of accumulated depreciation and amortization | 129,213 | 121,890 | 128,682 | |||||||||
Accrued interest receivable and other assets | 951,261 | 1,105,917 | 876,246 | |||||||||
Total assets | $ | 56,927,979 | $ | 58,139,734 | $ | 51,214,467 | ||||||
Liabilities and total equity: | ||||||||||||
Liabilities: | ||||||||||||
Noninterest-bearing demand deposits | $ | 39,103,422 | $ | 40,473,774 | $ | 36,655,497 | ||||||
Interest-bearing deposits | 10,225,478 | 8,122,337 | 7,598,578 | |||||||||
Total deposits | 49,328,900 | 48,596,111 | 44,254,075 | |||||||||
Short-term borrowings | 631,412 | 2,631,252 | 1,033,730 | |||||||||
Other liabilities | 1,006,359 | 1,146,109 | 911,755 | |||||||||
Long-term debt | 696,465 | 696,217 | 695,492 | |||||||||
Total liabilities | 51,663,136 | 53,069,689 | 46,895,052 | |||||||||
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; 52,586,498 shares, 53,250,255 shares, and 52,835,188 shares outstanding, respectively | 53 | 53 | 53 | |||||||||
Additional paid-in capital | 1,378,438 | 1,360,030 | 1,314,377 | |||||||||
Retained earnings (1) | 3,791,838 | 3,672,696 | 2,866,837 | |||||||||
Accumulated other comprehensive loss | (54,120 | ) | (108,410 | ) | (1,472 | ) | ||||||
Total SVBFG stockholders’ equity | 5,116,209 | 4,924,369 | 4,179,795 | |||||||||
Noncontrolling interests | 148,634 | 145,676 | 139,620 | |||||||||
Total equity | 5,264,843 | 5,070,045 | 4,319,415 | |||||||||
Total liabilities and total equity | $ | 56,927,979 | $ | 58,139,734 | $ | 51,214,467 |
(1) | Effective January 1, 2018, we adopted Accounting Standard update ("ASU") 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, resulting in the reclassification of public equity securities out of our AFS securities portfolio into our non-marketable and other equity securities portfolio. In addition, upon adoption of this guidance, equity investments carried at cost in our non-marketable and other equity securities portfolio were remeasured, and are carried, at fair value. This guidance was adopted using the modified retrospective method with a cumulative adjustment to opening retained earnings. As such, prior period amounts have not been restated. |
Three months ended | |||||||||||||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||
(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) | $ | 3,666,985 | $ | 15,128 | 1.64 | % | $ | 2,548,271 | $ | 8,137 | 1.27 | % | $ | 2,736,581 | $ | 4,835 | 0.70 | % | |||||||||||||||
Investment securities: (2) | |||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||
Taxable | 8,793,665 | 43,854 | 1.98 | 9,589,917 | 46,684 | 1.93 | 12,081,001 | 52,620 | 1.73 | ||||||||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||||||
Taxable | 14,114,704 | 94,049 | 2.64 | 14,385,027 | 95,391 | 2.63 | 11,186,642 | 64,745 | 2.30 | ||||||||||||||||||||||||
Non-taxable (3) | 1,576,415 | 14,062 | 3.54 | 1,531,663 | 13,606 | 3.52 | 516,343 | 4,632 | 3.56 | ||||||||||||||||||||||||
Total loans, net of unearned income (4) (5) | 27,476,960 | 378,756 | 5.47 | 26,331,377 | 352,353 | 5.31 | 22,444,057 | 279,805 | 4.95 | ||||||||||||||||||||||||
Total interest-earning assets | 55,628,729 | 545,849 | 3.89 | 54,386,255 | 516,171 | 3.77 | 48,964,624 | 406,637 | 3.29 | ||||||||||||||||||||||||
Cash and due from banks | 434,140 | 553,132 | 415,669 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (289,573 | ) | (296,177 | ) | (257,121 | ) | |||||||||||||||||||||||||||
Other assets (6) | 1,819,019 | 1,821,827 | 1,676,181 | ||||||||||||||||||||||||||||||
Total assets | $ | 57,592,315 | $ | 56,465,037 | $ | 50,799,353 | |||||||||||||||||||||||||||
Funding sources: | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 598,077 | $ | 125 | 0.08 | % | $ | 572,242 | $ | 116 | 0.08 | % | $ | 473,392 | $ | 92 | 0.08 | % | |||||||||||||||
Money market deposits | 7,121,750 | 10,054 | 0.56 | 6,704,337 | 7,782 | 0.46 | 5,977,512 | 2,227 | 0.15 | ||||||||||||||||||||||||
Money market deposits in foreign offices | 148,222 | 16 | 0.04 | 218,734 | 22 | 0.04 | 265,304 | 25 | 0.04 | ||||||||||||||||||||||||
Time deposits | 71,498 | 39 | 0.22 | 74,597 | 35 | 0.19 | 42,774 | 10 | 0.09 | ||||||||||||||||||||||||
Sweep deposits in foreign offices | 1,040,761 | 663 | 0.25 | 896,558 | 87 | 0.04 | 1,052,387 | 104 | 0.04 | ||||||||||||||||||||||||
Total interest-bearing deposits | 8,980,308 | 10,897 | 0.48 | 8,466,468 | 8,042 | 0.38 | 7,811,369 | 2,458 | 0.12 | ||||||||||||||||||||||||
Short-term borrowings | 1,579,983 | 9,527 | 2.39 | 745,156 | 4,039 | 2.15 | 75,160 | 248 | 1.31 | ||||||||||||||||||||||||
3.50% Senior Notes | 347,583 | 3,147 | 3.59 | 347,499 | 3,147 | 3.59 | 347,250 | 3,145 | 3.59 | ||||||||||||||||||||||||
5.375% Senior Notes | 348,719 | 4,866 | 5.54 | 348,557 | 4,863 | 5.54 | 348,088 | 4,857 | 5.54 | ||||||||||||||||||||||||
Junior Subordinated Debentures | — | — | — | — | — | — | 47,849 | 602 | 4.99 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 11,256,593 | 28,437 | 1.00 | 9,907,680 | 20,091 | 0.80 | 8,629,716 | 11,310 | 0.52 | ||||||||||||||||||||||||
Portion of noninterest-bearing funding sources | 44,372,136 | 44,478,575 | 40,334,908 | ||||||||||||||||||||||||||||||
Total funding sources | 55,628,729 | 28,437 | 0.20 | 54,386,255 | 20,091 | 0.15 | 48,964,624 | 11,310 | 0.09 | ||||||||||||||||||||||||
Noninterest-bearing funding sources: | |||||||||||||||||||||||||||||||||
Demand deposits | 40,106,861 | 40,625,772 | 36,962,029 | ||||||||||||||||||||||||||||||
Other liabilities | 955,635 | 932,544 | 878,749 | ||||||||||||||||||||||||||||||
SVBFG stockholders’ equity | 5,127,271 | 4,854,440 | 4,191,461 | ||||||||||||||||||||||||||||||
Noncontrolling interests | 145,955 | 144,601 | 137,398 | ||||||||||||||||||||||||||||||
Portion used to fund interest-earning assets | (44,372,136 | ) | (44,478,575 | ) | (40,334,908 | ) | |||||||||||||||||||||||||||
Total liabilities and total equity | $ | 57,592,315 | $ | 56,465,037 | $ | 50,799,353 | |||||||||||||||||||||||||||
Net interest income and margin | $ | 517,412 | 3.69 | % | $ | 496,080 | 3.62 | % | $ | 395,327 | 3.20 | % | |||||||||||||||||||||
Total deposits | $ | 49,087,169 | $ | 49,092,240 | $ | 44,773,398 | |||||||||||||||||||||||||||
Average SVBFG stockholders’ equity as a percentage of average assets | 8.90 | % | 8.60 | % | 8.25 | % | |||||||||||||||||||||||||||
Reconciliation to reported net interest income: | |||||||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | (2,952 | ) | (2,858 | ) | (1,621 | ) | |||||||||||||||||||||||||||
Net interest income, as reported | $ | 514,460 | $ | 493,222 | $ | 393,706 |
(1) | Includes average interest-earning deposits in other financial institutions of $0.6 billion, $0.7 billion and $1.2 billion; and $2.3 billion, $1.4 billion and $1.4 billion deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate, for the quarters ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively. |
(2) | Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income or loss. |
(3) | Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 21.0 percent for December 31, 2018 and September 30, 2018, and 35.0 percent for the 2017 period presented. |
(4) | Nonaccrual loans are reflected in the average balances of loans. |
(5) | Interest income includes loan fees of $35.8 million, $33.1 million and $34.6 million for the quarters ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively. |
(6) | Average investment securities of $770 million, $761 million and $709 million for the quarters ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively, were classified as other assets as they are noninterest-earning assets. These investments consist primarily of non-marketable and other equity securities. |
Year ended | ||||||||||||||||||||||
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||
(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) | $ | 2,820,883 | $ | 35,208 | 1.25 | % | $ | 3,109,840 | $ | 21,505 | 0.69 | % | ||||||||||
Investment securities: (2) | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||
Taxable | 9,789,211 | 185,120 | 1.89 | 12,424,137 | 199,423 | 1.61 | ||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||
Taxable | 13,727,745 | 356,485 | 2.60 | 9,732,869 | 212,710 | 2.19 | ||||||||||||||||
Non-taxable (3) | 1,270,101 | 43,817 | 3.45 | 251,741 | 8,790 | 3.49 | ||||||||||||||||
Total loans, net of unearned income (4) (5) | 25,630,520 | 1,358,480 | 5.30 | 21,159,394 | 1,025,788 | 4.85 | ||||||||||||||||
Total interest-earning assets | 53,238,460 | 1,979,110 | 3.71 | 46,677,981 | 1,468,216 | 3.15 | ||||||||||||||||
Cash and due from banks | 480,900 | 374,811 | ||||||||||||||||||||
Allowance for loan losses | (282,489 | ) | (247,004 | ) | ||||||||||||||||||
Other assets (6) | 1,792,189 | 1,574,484 | ||||||||||||||||||||
Total assets | $ | 55,229,060 | $ | 48,380,272 | ||||||||||||||||||
Funding sources: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest bearing checking and savings accounts | $ | 583,295 | $ | 463 | 0.08 | % | $ | 433,966 | $ | 334 | 0.08 | % | ||||||||||
Money market deposits | 6,609,873 | 27,713 | 0.42 | 5,743,083 | 7,771 | 0.14 | ||||||||||||||||
Money market deposits in foreign offices | 192,128 | 76 | 0.04 | 203,775 | 84 | 0.04 | ||||||||||||||||
Time deposits | 62,570 | 111 | 0.18 | 48,818 | 59 | 0.12 | ||||||||||||||||
Sweep deposits in foreign offices | 994,360 | 943 | 0.09 | 1,080,306 | 428 | 0.04 | ||||||||||||||||
Total interest-bearing deposits | 8,442,226 | 29,306 | 0.35 | 7,509,948 | 8,676 | 0.12 | ||||||||||||||||
Short-term borrowings | 643,886 | 14,579 | 2.26 | 48,505 | 543 | 1.12 | ||||||||||||||||
3.50% Senior Notes | 347,458 | 12,586 | 3.62 | 347,128 | 12,574 | 3.62 | ||||||||||||||||
5.375% Senior Notes | 348,480 | 19,450 | 5.58 | 347,862 | 19,415 | 5.58 | ||||||||||||||||
Junior Subordinated Debentures | — | — | — | 52,775 | 3,096 | 5.87 | ||||||||||||||||
6.05% Subordinated Notes | — | — | — | 19,178 | 467 | 2.44 | ||||||||||||||||
Total interest-bearing liabilities | 9,782,050 | 75,921 | 0.78 | 8,325,396 | 44,771 | 0.54 | ||||||||||||||||
Portion of noninterest-bearing funding sources | 43,456,410 | 38,352,585 | ||||||||||||||||||||
Total funding sources | 53,238,460 | 75,921 | 0.14 | 46,677,981 | 44,771 | 0.10 | ||||||||||||||||
Noninterest-bearing funding sources: | ||||||||||||||||||||||
Demand deposits | 39,633,118 | 35,235,200 | ||||||||||||||||||||
Other liabilities | 937,199 | 721,432 | ||||||||||||||||||||
SVBFG stockholders’ equity | 4,734,417 | 3,961,405 | ||||||||||||||||||||
Noncontrolling interests | 142,276 | 136,839 | ||||||||||||||||||||
Portion used to fund interest-earning assets | (43,456,410 | ) | (38,352,585 | ) | ||||||||||||||||||
Total liabilities and total equity | $ | 55,229,060 | $ | 48,380,272 | ||||||||||||||||||
Net interest income and margin | $ | 1,903,189 | 3.57 | % | $ | 1,423,445 | 3.05 | % | ||||||||||||||
Total deposits | $ | 48,075,344 | $ | 42,745,148 | ||||||||||||||||||
Average SVBFG stockholders’ equity as a percentage of average assets | 8.57 | % | 8.19 | % | ||||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||||
Adjustments for taxable equivalent basis | (9,201 | ) | (3,076 | ) | ||||||||||||||||||
Net interest income, as reported | $ | 1,893,988 | $ | 1,420,369 |
(1) | Includes average interest-earning deposits in other financial institutions of $0.8 billion and $1.1 billion for the years ended December 31, 2018 and 2017, respectively. The balance also includes $1.6 billion and $1.9 billion deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate for the years ended December 31, 2018 and 2017, respectively. |
(2) | Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income or loss. |
(3) | Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 21.0 percent and 35.0 percent for the years ended December 31, 2018 and 2017, respectively. |
(4) | Nonaccrual loans are reflected in the average balances of loans. |
(5) | Interest income includes loan fees of $136.6 million and $128.1 million for the years ended December 31, 2018 and 2017, respectively. |
(6) | Average investment securities of $773 million and $683 million for the years ended December 31, 2018 and 2017, respectively, were classified as other assets as they are noninterest-earning assets. These investments consisted primarily of non-marketable and other equity securities. |
Three months ended | Year ended | ||||||||||||||
(Shares in thousands) | December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||||||||
Weighted average common shares outstanding—basic | 53,125 | 53,235 | 52,762 | 53,078 | 52,588 | ||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options and employee stock purchase plan | 302 | 383 | 388 | 377 | 385 | ||||||||||
Restricted stock units | 258 | 301 | 352 | 317 | 333 | ||||||||||
Total effect of dilutive securities | 560 | 684 | 740 | 694 | 718 | ||||||||||
Weighted average common shares outstanding—diluted | 53,685 | 53,919 | 53,502 | 53,772 | 53,306 |
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||
SVB Financial: | |||||||||
CET 1 risk-based capital ratio | 13.41 | % | 13.28 | % | 12.78 | % | |||
Tier 1 risk-based capital ratio | 13.58 | 13.45 | 12.97 | ||||||
Total risk-based capital ratio | 14.45 | 14.34 | 13.96 | ||||||
Tier 1 leverage ratio | 9.06 | 8.99 | 8.34 | ||||||
Tangible common equity to tangible assets ratio (1) | 8.99 | 8.47 | 8.16 | ||||||
Tangible common equity to risk-weighted assets ratio (1) | 13.28 | 13.00 | 12.77 | ||||||
Silicon Valley Bank: | |||||||||
CET 1 risk-based capital ratio | 12.41 | % | 11.98 | % | 12.06 | % | |||
Tier 1 risk-based capital ratio | 12.41 | 11.98 | 12.06 | ||||||
Total risk-based capital ratio | 13.32 | 12.91 | 13.04 | ||||||
Tier 1 leverage ratio | 8.10 | 7.82 | 7.56 | ||||||
Tangible common equity to tangible assets ratio (1) | 8.13 | 7.44 | 7.47 | ||||||
Tangible common equity to risk-weighted assets ratio (1) | 12.28 | 11.70 | 11.98 |
(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) | December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
Loans (individually or in the aggregate) to any single client, equal to or greater than $20 million | ||||||||||||
Commercial loans: | ||||||||||||
Software/internet | $ | 2,255,601 | $ | 2,337,757 | $ | 2,153,855 | ||||||
Hardware | 604,954 | 671,773 | 550,082 | |||||||||
Private equity/venture capital | 10,147,715 | 9,528,896 | 6,838,977 | |||||||||
Life science/healthcare | 1,065,060 | 932,958 | 518,851 | |||||||||
Premium wine (1) | 74,236 | 88,019 | 41,687 | |||||||||
Other | 70,903 | 55,986 | 102,521 | |||||||||
Total commercial loans | 14,218,469 | 13,615,389 | 10,205,973 | |||||||||
Real estate secured loans: | ||||||||||||
Premium wine (1) | 106,132 | 106,136 | 112,215 | |||||||||
Consumer (2) | — | — | — | |||||||||
Other | — | — | 20,333 | |||||||||
Total real estate secured loans | 106,132 | 106,136 | 132,548 | |||||||||
Construction loans | — | — | 22,901 | |||||||||
Consumer loans (2) | 165,519 | 207,016 | 115,016 | |||||||||
Total loans individually equal to or greater than $20 million | $ | 14,490,120 | $ | 13,928,541 | $ | 10,476,438 | ||||||
Loans (individually or in the aggregate) to any single client, less than $20 million | ||||||||||||
Commercial loans: | ||||||||||||
Software/internet | $ | 3,954,377 | $ | 3,979,558 | $ | 4,078,870 | ||||||
Hardware | 640,846 | 646,712 | 650,818 | |||||||||
Private equity/venture capital | 3,970,417 | 3,840,139 | 3,122,144 | |||||||||
Life science/healthcare | 1,396,016 | 1,444,512 | 1,349,109 | |||||||||
Premium wine | 175,081 | 139,480 | 162,570 | |||||||||
Other | 275,843 | 221,949 | 276,910 | |||||||||
Total commercial loans | 10,412,580 | 10,272,350 | 9,640,421 | |||||||||
Real estate secured loans: | ||||||||||||
Premium wine | 605,105 | 580,631 | 557,897 | |||||||||
Consumer | 2,609,645 | 2,553,651 | 2,297,857 | |||||||||
Other | 40,627 | 41,076 | 21,897 | |||||||||
Total real estate secured loans | 3,255,377 | 3,175,358 | 2,877,651 | |||||||||
Construction loans | 98,034 | 81,903 | 46,207 | |||||||||
Consumer loans | 255,201 | 210,677 | 213,436 | |||||||||
Total loans individually less than $20 million | $ | 14,021,192 | $ | 13,740,288 | $ | 12,777,715 | ||||||
Total gross loans | $ | 28,511,312 | $ | 27,668,829 | $ | 23,254,153 | ||||||
Loans individually equal to or greater than $20 million as a percentage of total gross loans | 50.8 | % | 50.3 | % | 45.1 | % | ||||||
Total clients with loans individually equal to or greater than $20 million | 361 | 347 | 277 | |||||||||
Loans individually equal to or greater than $20 million on nonaccrual status | $ | 27,455 | $ | 27,872 | $ | 52,109 |
(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) | December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
Gross nonaccrual, past due, and restructured loans: | ||||||||||||
Nonaccrual loans | $ | 94,142 | $ | 115,162 | $ | 119,259 | ||||||
Loans past due 90 days or more still accruing interest | 1,964 | 163 | 191 | |||||||||
Total nonperforming loans | 96,106 | 115,325 | 119,450 | |||||||||
OREO and other foreclosed assets | — | — | — | |||||||||
Total nonperforming assets | $ | 96,106 | $ | 115,325 | $ | 119,450 | ||||||
Nonperforming loans as a percentage of total gross loans | 0.34 | % | 0.42 | % | 0.51 | % | ||||||
Nonperforming assets as a percentage of total assets | 0.17 | 0.20 | 0.23 | |||||||||
Allowance for loan losses | $ | 280,903 | $ | 285,713 | $ | 255,024 | ||||||
As a percentage of total gross loans | 0.99 | % | 1.03 | % | 1.10 | % | ||||||
As a percentage of total gross nonperforming loans | 292.28 | 247.75 | 213.50 | |||||||||
Allowance for loan losses for nonaccrual loans | $ | 37,941 | $ | 49,992 | $ | 41,793 | ||||||
As a percentage of total gross loans | 0.13 | % | 0.18 | % | 0.18 | % | ||||||
As a percentage of total gross nonperforming loans | 39.48 | 43.35 | 34.99 | |||||||||
Allowance for loan losses for total gross performing loans | $ | 242,962 | $ | 235,721 | $ | 213,231 | ||||||
As a percentage of total gross loans | 0.85 | % | 0.85 | % | 0.92 | % | ||||||
As a percentage of total gross performing loans | 0.86 | 0.86 | 0.92 | |||||||||
Total gross loans | $ | 28,511,312 | $ | 27,668,829 | $ | 23,254,153 | ||||||
Total gross performing loans | 28,415,206 | 27,553,504 | 23,134,703 | |||||||||
Allowance for unfunded credit commitments (1) | 55,183 | 51,808 | 51,770 | |||||||||
As a percentage of total unfunded credit commitments | 0.29 | % | 0.28 | % | 0.30 | % | ||||||
Total unfunded credit commitments (2) | $ | 18,913,021 | $ | 18,539,514 | $ | 17,462,537 |
(1) | The “allowance for unfunded credit commitments” is included as a component of “other liabilities.” |
(2) | Includes unfunded loan commitments and letters of credit. |
Three months ended | Year ended | |||||||||||||||||||
(Dollars in millions) | December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||
Sweep money market funds | $ | 38,075 | $ | 34,556 | $ | 22,524 | $ | 32,232 | $ | 19,718 | ||||||||||
Client investment assets under management (2) | 38,334 | 36,541 | 28,076 | 34,754 | 25,417 | |||||||||||||||
Repurchase agreements | 8,630 | 8,464 | 6,989 | 8,086 | 6,390 | |||||||||||||||
Total average client investment funds | $ | 85,039 | $ | 79,561 | $ | 57,589 | $ | 75,072 | $ | 51,525 |
Period-end balances at | ||||||||||||||||||||
(Dollars in millions) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
Sweep money market funds | $ | 38,348 | $ | 36,067 | $ | 31,859 | $ | 29,421 | $ | 23,911 | ||||||||||
Client investment assets under management (2) | 39,214 | 37,649 | 35,509 | 31,423 | 29,344 | |||||||||||||||
Repurchase agreements | 8,422 | 8,369 | 8,406 | 6,895 | 7,074 | |||||||||||||||
Total period-end client investment funds | $ | 85,984 | $ | 82,085 | $ | 75,774 | $ | 67,739 | $ | 60,329 |
(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. 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 a 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 |
• | Non-GAAP core operating efficiency ratio — This ratio excludes certain financial items where performance is typically subject to market or other conditions beyond our control. It is calculated by dividing noninterest expense by total revenue, after adjusting for gains or losses on investment securities and equity warrant assets. |
• | 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 or losses on investment securities, equity warrant assets and other noninterest income items. |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (Dollars in thousands) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||||||
GAAP noninterest income | $ | 186,707 | $ | 210,070 | $ | 192,689 | $ | 155,518 | $ | 152,266 | $ | 744,984 | $ | 557,231 | ||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 8,839 | 6,692 | 9,445 | 13,024 | 7,743 | 38,000 | 29,452 | |||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | $ | 177,868 | $ | 203,378 | $ | 183,244 | $ | 142,494 | $ | 144,523 | $ | 706,984 | $ | 527,779 |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP core fee income (Dollars in thousands) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||||||
GAAP noninterest income | $ | 186,707 | $ | 210,070 | $ | 192,689 | $ | 155,518 | $ | 152,266 | $ | 744,984 | $ | 557,231 | ||||||||||||||
Less: gains on investment securities, net | 10,729 | 32,193 | 36,114 | 9,058 | 15,765 | 88,094 | 64,603 | |||||||||||||||||||||
Less: net gains on equity warrant assets | 16,749 | 34,141 | 19,061 | 19,191 | 12,123 | 89,142 | 54,555 | |||||||||||||||||||||
Less: other noninterest income | 13,187 | 12,022 | 14,390 | 12,259 | 17,982 | 51,858 | 59,110 | |||||||||||||||||||||
Non-GAAP core fee income | $ | 146,042 | $ | 131,714 | $ | 123,124 | $ | 115,010 | $ | 106,396 | $ | 515,890 | $ | 378,963 |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests (Dollars in thousands) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||||||
GAAP net gains on investment securities | $ | 10,729 | $ | 32,193 | $ | 36,114 | $ | 9,058 | $ | 15,765 | $ | 88,094 | $ | 64,603 | ||||||||||||||
Less: income attributable to noncontrolling interests, including carried interest allocation | 8,965 | 6,641 | 9,672 | 12,905 | 7,764 | 38,183 | 29,187 | |||||||||||||||||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests | $ | 1,764 | $ | 25,552 | $ | 26,442 | $ | (3,847 | ) | $ | 8,001 | $ | 49,911 | $ | 35,416 |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP operating efficiency ratio, net of noncontrolling interests (Dollars in thousands, except ratios) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||||||
GAAP noninterest expense | $ | 307,592 | $ | 309,445 | $ | 305,739 | $ | 265,417 | $ | 264,015 | $ | 1,188,193 | $ | 1,010,655 | ||||||||||||||
Less: expense attributable to noncontrolling interests | 173 | 154 | 227 | (32 | ) | 296 | 522 | 813 | ||||||||||||||||||||
Non-GAAP noninterest expense, net of noncontrolling interests | $ | 307,419 | $ | 309,291 | $ | 305,512 | $ | 265,449 | $ | 263,719 | $ | 1,187,671 | $ | 1,009,842 | ||||||||||||||
GAAP net interest income | $ | 514,460 | $ | 493,222 | $ | 466,443 | $ | 419,863 | $ | 393,706 | $ | 1,893,988 | $ | 1,420,369 | ||||||||||||||
Adjustments for taxable equivalent basis | 2,952 | 2,858 | 2,037 | 1,354 | 1,621 | 9,201 | 3,076 | |||||||||||||||||||||
Non-GAAP taxable equivalent net interest income | $ | 517,412 | $ | 496,080 | $ | 468,480 | $ | 421,217 | $ | 395,327 | $ | 1,903,189 | $ | 1,423,445 | ||||||||||||||
Less: net interest income attributable to noncontrolling interests | 1 | 10 | 10 | 9 | 7 | 30 | 33 | |||||||||||||||||||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests | $ | 517,411 | $ | 496,070 | $ | 468,470 | $ | 421,208 | $ | 395,320 | $ | 1,903,159 | $ | 1,423,412 | ||||||||||||||
GAAP noninterest income | $ | 186,707 | $ | 210,070 | $ | 192,689 | $ | 155,518 | $ | 152,266 | $ | 744,984 | $ | 557,231 | ||||||||||||||
Less: income attributable to noncontrolling interests | 8,839 | 6,692 | 9,445 | 13,024 | 7,743 | 38,000 | 29,452 | |||||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests | $ | 177,868 | $ | 203,378 | $ | 183,244 | $ | 142,494 | $ | 144,523 | $ | 706,984 | $ | 527,779 | ||||||||||||||
GAAP total revenue | $ | 701,167 | $ | 703,292 | $ | 659,132 | $ | 575,381 | $ | 545,972 | $ | 2,638,972 | $ | 1,977,600 | ||||||||||||||
Non-GAAP taxable equivalent revenue, net of noncontrolling interests | $ | 695,279 | $ | 699,448 | $ | 651,714 | $ | 563,702 | $ | 539,843 | $ | 2,610,143 | $ | 1,951,191 | ||||||||||||||
GAAP operating efficiency ratio | 43.87 | % | 44.00 | % | 46.39 | % | 46.13 | % | 48.36 | % | 45.02 | % | 51.11 | % | ||||||||||||||
Non-GAAP operating efficiency ratio, net of noncontrolling interests | 44.22 | 44.22 | 46.88 | 47.09 | 48.85 | 45.50 | 51.76 |
Three months ended | Year ended | |||||||||||||||||||||||||||
Non-GAAP core operating efficiency ratio (Dollars in thousands, except ratios) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||||||
GAAP noninterest expense | $ | 307,592 | $ | 309,445 | $ | 305,739 | $ | 265,417 | $ | 264,015 | $ | 1,188,193 | $ | 1,010,655 | ||||||||||||||
GAAP net interest income | $ | 514,460 | $ | 493,222 | $ | 466,443 | $ | 419,863 | $ | 393,706 | $ | 1,893,988 | $ | 1,420,369 | ||||||||||||||
GAAP noninterest income | $ | 186,707 | $ | 210,070 | $ | 192,689 | $ | 155,518 | $ | 152,266 | $ | 744,984 | $ | 557,231 | ||||||||||||||
Less: gains on investment securities, net | 10,729 | 32,193 | 36,114 | 9,058 | 15,765 | 88,094 | 64,603 | |||||||||||||||||||||
Less: net gains on equity warrant assets | 16,749 | 34,141 | 19,061 | 19,191 | 12,123 | 89,142 | 54,555 | |||||||||||||||||||||
Non-GAAP noninterest income, net of gains on investment securities and equity warrant assets | $ | 159,229 | $ | 143,736 | $ | 137,514 | $ | 127,269 | $ | 124,378 | $ | 567,748 | $ | 438,073 | ||||||||||||||
GAAP total revenue | $ | 701,167 | $ | 703,292 | $ | 659,132 | $ | 575,381 | $ | 545,972 | $ | 2,638,972 | $ | 1,977,600 | ||||||||||||||
Non-GAAP total revenue, net of gains on investment securities and equity warrant assets | $ | 673,689 | $ | 636,958 | $ | 603,957 | $ | 547,132 | $ | 518,084 | $ | 2,461,736 | $ | 1,858,442 | ||||||||||||||
GAAP operating efficiency ratio | 43.87 | % | 44.00 | % | 46.39 | % | 46.13 | % | 48.36 | % | 45.02 | % | 51.11 | % | ||||||||||||||
Non-GAAP, core operating efficiency ratio | 45.66 | 48.58 | 50.62 | 48.51 | 50.96 | 48.27 | 54.38 |
Non-GAAP non-marketable and other equity securities, net of noncontrolling interests (Dollars in thousands) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
GAAP non-marketable and other equity securities | $ | 941,104 | $ | 896,249 | $ | 852,505 | $ | 824,936 | $ | 651,053 | ||||||||||
Less: amounts attributable to noncontrolling interests | 134,962 | 130,995 | 130,216 | 125,568 | 120,409 | |||||||||||||||
Non-GAAP non-marketable and other equity securities, net of noncontrolling interests | $ | 806,142 | $ | 765,254 | $ | 722,289 | $ | 699,368 | $ | 530,644 |
SVB Financial Group tangible common equity, tangible assets and risk-weighted assets (Dollars in thousands, except ratios) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
GAAP SVBFG stockholders’ equity (tangible common equity) | $ | 5,116,209 | $ | 4,924,369 | $ | 4,657,653 | $ | 4,415,446 | $ | 4,179,795 | ||||||||||
GAAP total assets (tangible assets) | $ | 56,927,979 | $ | 58,139,734 | $ | 55,867,745 | $ | 53,500,787 | $ | 51,214,467 | ||||||||||
Risk-weighted assets | $ | 38,527,853 | $ | 37,889,139 | $ | 36,727,118 | $ | 34,903,720 | $ | 32,736,959 | ||||||||||
Tangible common equity to tangible assets | 8.99 | % | 8.47 | % | 8.34 | % | 8.25 | % | 8.16 | % | ||||||||||
Tangible common equity to risk-weighted assets | 13.28 | 13.00 | 12.68 | 12.65 | 12.77 |
Silicon Valley Bank tangible common equity, tangible assets and risk-weighted assets (Dollars in thousands, except ratios) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
Tangible common equity | $ | 4,554,814 | $ | 4,260,685 | $ | 4,068,918 | $ | 3,900,094 | $ | 3,762,542 | ||||||||||
Tangible assets | $ | 56,047,134 | $ | 57,245,029 | $ | 55,035,371 | $ | 52,622,450 | $ | 50,383,774 | ||||||||||
Risk-weighted assets | $ | 37,104,080 | $ | 36,424,091 | $ | 35,326,564 | $ | 33,396,675 | $ | 31,403,489 | ||||||||||
Tangible common equity to tangible assets | 8.13 | % | 7.44 | % | 7.39 | % | 7.41 | % | 7.47 | % | ||||||||||
Tangible common equity to risk-weighted assets | 12.28 | 11.70 | 11.52 | 11.68 | 11.98 |
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