21.

Parent Company Only Condensed Financial Information

The condensed balance sheets of SVB Financial at December 31, 2011 and 2010, and the related condensed statements of income and cash flows for 2011, 2010 and 2009, are presented below.

Condensed Balance Sheets


	December 31,
(Dollars in thousands)	2011		2010
Assets:
Cash and cash equivalents	$	137,185	$	433,661
Investment securities		235,822		183,929
Net loans		10,903		6,692
Other assets		108,712		101,118
Investment in subsidiaries:
Bank subsidiary		1,346,854		1,074,561
Nonbank subsidiaries		156,577		150,870

Total assets	$	1,996,053	$	1,950,831

Liabilities and SVBFG stockholders’ equity:
5.375% Senior Notes	$	347,793	$	347,601
3.875% Convertible Notes		—		249,304
7.0% Junior Subordinated Debentures		55,372		55,548
Other long-term debt		1,439		5,257
Other liabilities		22,057		18,771

Total liabilities		426,661		676,481

SVBFG stockholders’ equity		1,569,392		1,274,350

Total liabilities and SVBFG stockholders’ equity	$	1,996,053	$	1,950,831

Condensed Statements of Income


	Year ended December 31,
(Dollars in thousands)	2011			2010			2009
Interest income	$	2,819		$	1,603		$	3,179
Interest expense		(27,252	)		(22,816	)		(17,679	)
Gains (losses) on derivative instruments, net		34,654			6,570			(200	)
Gains (losses) on investment securities, net		16,432			6,923			(1,319	)
General and administrative expenses		(71,355	)		(66,489	)		(65,400	)
Income tax benefit		7,468			24,918			30,398

Loss before net income of subsidiaries		(37,234	)		(49,291	)		(51,021	)
Equity in undistributed net income of nonbank subsidiaries		22,081			17,536			1,261
Equity in undistributed net income of bank subsidiary		187,055			126,706			97,770

Net income attributable to SVBFG	$	171,902		$	94,951		$	48,010

Preferred stock dividend and discount accretion		—			—			(25,336	)

Net income available to common stockholders	$	171,902		$	94,951		$	22,674

Condensed Statements of Cash Flows


	Year ended December 31,
(Dollars in thousands)	2011			2010			2009
Cash flows from operating activities:
Net income attributable to SVBFG	$	171,902		$	94,951		$	48,010
Adjustments to reconcile net income to net cash used for operating activities:
(Gains) losses on derivative instruments, net		(34,654	)		(6,570	)		200
(Gains) losses on investment securities, net		(16,432	)		(6,923	)		1,319
Net income of bank subsidiary		(187,055	)		(126,706	)		(97,770	)
Net income on nonbank subsidiaries		(22,081	)		(17,536	)		(1,261	)
Amortization of share-based compensation		18,221			13,761			14,784
Decrease (increase) in other assets		21,926			24,283			(21,494	)
Increase (decrease) in other liabilities		2,936			10,682			(2,578	)
Other, net		2,510			1,465			12,373

Net cash used for operating activities		(42,727	)		(12,593	)		(46,417	)

Cash flows from investing activities:
Net increase in investment securities from purchases, sales and maturities		(22,821	)		(26,773	)		(11,455	)
Net (increase) decrease in loans		(4,211	)		2,041			25,304
Increase in investment in bank subsidiaries		(18,698	)		(15,553	)		(110,326	)
Decrease (increase) in investment in nonbank subsidiaries		2,945			(45,410	)		(25,658	)

Net cash used for investing activities		(42,785	)		(85,695	)		(122,135	)

Cash flows from financing activities:
Principal payments of other long-term debt		(4,179	)		(1,961	)		—
Payments for settlement of 3.875% Convertible Notes		(250,000	)		—			—
Proceeds from issuance of 5.375% Senior Notes, net of discount and issuance cost		—			344,476			—
Tax benefit from stock exercises		6,342			4,151			458
Dividends paid on preferred stock		—			—			(12,110	)
Proceeds from issuance of common stock and ESPP		36,873			24,019			5,873
Proceeds from the issuance of common stock under our public equity offering, net of issuance costs		—			—			292,107
Redemption of preferred stock under the CPP		—			—			(235,000	)
Repurchase of warrant under CPP		—			(6,820	)		—

Net cash (used for) provided by financing activities		(210,964	)		363,865			51,328

Net (decrease) increase in cash and cash equivalents		(296,476	)		265,577			(117,224	)
Cash and cash equivalents at beginning of year		433,661			168,084			285,308

Cash and cash equivalents at end of year	$	137,185		$	433,661		$	168,084