Related Parties

12 Months Ended

Dec. 31, 2011

Related Parties

16. Related Parties

Loan Transactions

SVB Financial previously had a commitment under a partially-syndicated revolving line of credit facility to Gold Hill Venture Lending 03, LP, a venture debt fund, and its affiliated funds (“Gold Hill 03 Funds”), for which SVB Financial has ownership interests in each of the funds. In May 2011, this line of credit expired, and there was no outstanding balance under the facility as of December 31, 2011 and 2010.

During the second quarter of 2011, the Bank resolved a $0.7 million nonperforming loan made to a relative of one of the Bank’s executive officers. The largest aggregate amount of principal outstanding during 2011 was $0.7 million. During 2011, the Bank recovered total payments of $0.2 million, which was applied towards principal. $0.5 million has been charged off.

Additionally, during 2011, the Bank made loans to related parties, including certain companies in which certain of our directors or their affiliated venture funds are beneficial owners of ten percent or more of the equity securities of such companies. Such loans: (a) were made in the ordinary course of business; (b) were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons; and (c) did not involve more than the normal risk of collectibility or present other unfavorable features.