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x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
91-1962278
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
3003 Tasman Drive, Santa Clara, California
|
|
95054-1191
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
Page
|
|
|
|
Item 1.
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
Interim Consolidated Statements of Stockholders' Equity (unaudited) for the six months ended June 30, 2014 and 2013
|
|
|
|
|
|
Interim Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2014 and 2013
|
|
|
|
|
|
Notes to Interim Consolidated Financial Statements
|
|
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
(Dollars in thousands, except par value and share data)
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
|
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
2,649,831
|
|
|
$
|
1,538,779
|
|
Available-for-sale securities, at fair value (cost $11,613,679 and $12,055,524, respectively)
|
|
11,672,790
|
|
|
11,986,821
|
|
||
Held-to-maturity securities, at cost (fair value $5,454,996 and $0, respectively)
|
|
5,463,920
|
|
|
—
|
|
||
Non-marketable and other securities
|
|
1,757,235
|
|
|
1,595,494
|
|
||
Total investment securities
|
|
18,893,945
|
|
|
13,582,315
|
|
||
Loans, net of unearned income
|
|
11,348,711
|
|
|
10,906,386
|
|
||
Allowance for loan losses
|
|
(120,728
|
)
|
|
(142,886
|
)
|
||
Net loans
|
|
11,227,983
|
|
|
10,763,500
|
|
||
Premises and equipment, net of accumulated depreciation and amortization
|
|
71,465
|
|
|
67,485
|
|
||
Accrued interest receivable and other assets
|
|
465,792
|
|
|
465,110
|
|
||
Total assets
|
|
$
|
33,309,016
|
|
|
$
|
26,417,189
|
|
Liabilities and total equity
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Noninterest-bearing demand deposits
|
|
$
|
20,235,549
|
|
|
$
|
15,894,360
|
|
Interest-bearing deposits
|
|
8,116,998
|
|
|
6,578,619
|
|
||
Total deposits
|
|
28,352,547
|
|
|
22,472,979
|
|
||
Short-term borrowings
|
|
4,910
|
|
|
5,080
|
|
||
Other liabilities
|
|
559,073
|
|
|
404,586
|
|
||
Long-term debt
|
|
454,462
|
|
|
455,216
|
|
||
Total liabilities
|
|
29,370,992
|
|
|
23,337,861
|
|
||
Commitments and contingencies (Note 11 and Note 14)
|
|
|
|
|
|
|||
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; 50,695,206 shares and 45,800,418 shares outstanding, respectively
|
|
51
|
|
|
46
|
|
||
Additional paid-in capital
|
|
1,092,582
|
|
|
624,256
|
|
||
Retained earnings
|
|
1,532,830
|
|
|
1,390,732
|
|
||
Accumulated other comprehensive income (loss)
|
|
50,276
|
|
|
(48,764
|
)
|
||
Total SVBFG stockholders’ equity
|
|
2,675,739
|
|
|
1,966,270
|
|
||
Noncontrolling interests
|
|
1,262,285
|
|
|
1,113,058
|
|
||
Total equity
|
|
3,938,024
|
|
|
3,079,328
|
|
||
Total liabilities and total equity
|
|
$
|
33,309,016
|
|
|
$
|
26,417,189
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
147,680
|
|
|
$
|
131,785
|
|
|
$
|
295,852
|
|
|
$
|
255,529
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
||||||||
Taxable
|
|
63,424
|
|
|
44,657
|
|
|
117,844
|
|
|
90,409
|
|
||||
Non-taxable
|
|
794
|
|
|
807
|
|
|
1,590
|
|
|
1,606
|
|
||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities
|
|
1,943
|
|
|
734
|
|
|
3,579
|
|
|
1,453
|
|
||||
Total interest income
|
|
213,841
|
|
|
177,983
|
|
|
418,865
|
|
|
348,997
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
3,068
|
|
|
2,085
|
|
|
5,972
|
|
|
4,136
|
|
||||
Borrowings
|
|
5,808
|
|
|
5,817
|
|
|
11,600
|
|
|
11,611
|
|
||||
Total interest expense
|
|
8,876
|
|
|
7,902
|
|
|
17,572
|
|
|
15,747
|
|
||||
Net interest income
|
|
204,965
|
|
|
170,081
|
|
|
401,293
|
|
|
333,250
|
|
||||
Provision for loan losses
|
|
1,947
|
|
|
18,572
|
|
|
2,441
|
|
|
24,385
|
|
||||
Net interest income after provision for loan losses
|
|
203,018
|
|
|
151,509
|
|
|
398,852
|
|
|
308,865
|
|
||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
(Losses) gains on investment securities, net
|
|
(57,320
|
)
|
|
40,561
|
|
|
166,592
|
|
|
67,999
|
|
||||
Foreign exchange fees
|
|
17,928
|
|
|
13,667
|
|
|
35,124
|
|
|
27,863
|
|
||||
Gains on derivative instruments, net
|
|
12,775
|
|
|
8,087
|
|
|
36,942
|
|
|
18,379
|
|
||||
Credit card fees
|
|
10,249
|
|
|
7,609
|
|
|
20,531
|
|
|
15,057
|
|
||||
Deposit service charges
|
|
9,611
|
|
|
8,907
|
|
|
19,218
|
|
|
17,700
|
|
||||
Lending related fees
|
|
5,876
|
|
|
4,596
|
|
|
12,179
|
|
|
8,570
|
|
||||
Client investment fees
|
|
3,519
|
|
|
3,524
|
|
|
6,937
|
|
|
6,999
|
|
||||
Letters of credit and standby letters of credit fees
|
|
2,810
|
|
|
3,654
|
|
|
6,950
|
|
|
7,089
|
|
||||
Other
|
|
8,762
|
|
|
7,634
|
|
|
19,962
|
|
|
7,187
|
|
||||
Total noninterest income
|
|
14,210
|
|
|
98,239
|
|
|
324,435
|
|
|
176,843
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
99,820
|
|
|
84,742
|
|
|
202,327
|
|
|
173,446
|
|
||||
Professional services
|
|
21,113
|
|
|
16,633
|
|
|
42,302
|
|
|
33,793
|
|
||||
Premises and equipment
|
|
12,053
|
|
|
11,402
|
|
|
23,635
|
|
|
22,127
|
|
||||
Business development and travel
|
|
9,249
|
|
|
7,783
|
|
|
19,443
|
|
|
16,055
|
|
||||
Net occupancy
|
|
7,680
|
|
|
5,795
|
|
|
15,000
|
|
|
11,562
|
|
||||
FDIC assessments
|
|
4,945
|
|
|
2,853
|
|
|
9,073
|
|
|
6,235
|
|
||||
Correspondent bank fees
|
|
3,274
|
|
|
3,049
|
|
|
6,477
|
|
|
6,104
|
|
||||
Provision for unfunded credit commitments
|
|
2,185
|
|
|
1,347
|
|
|
3,308
|
|
|
3,361
|
|
||||
Other
|
|
13,127
|
|
|
9,688
|
|
|
24,317
|
|
|
19,623
|
|
||||
Total noninterest expense
|
|
173,446
|
|
|
143,292
|
|
|
345,882
|
|
|
292,306
|
|
||||
Income before income tax expense
|
|
43,782
|
|
|
106,456
|
|
|
377,405
|
|
|
193,402
|
|
||||
Income tax expense
|
|
33,582
|
|
|
29,968
|
|
|
92,499
|
|
|
56,369
|
|
||||
Net income before noncontrolling interests
|
|
10,200
|
|
|
76,488
|
|
|
284,906
|
|
|
137,033
|
|
||||
Net loss (income) attributable to noncontrolling interests
|
|
40,597
|
|
|
(27,904
|
)
|
|
(142,808
|
)
|
|
(47,558
|
)
|
||||
Net income available to common stockholders
|
|
$
|
50,797
|
|
|
$
|
48,584
|
|
|
$
|
142,098
|
|
|
$
|
89,475
|
|
Earnings per common share—basic
|
|
$
|
1.05
|
|
|
$
|
1.08
|
|
|
$
|
3.02
|
|
|
$
|
1.99
|
|
Earnings per common share—diluted
|
|
1.04
|
|
|
1.06
|
|
|
2.96
|
|
|
1.96
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net income before noncontrolling interests
|
|
$
|
10,200
|
|
|
$
|
76,488
|
|
|
$
|
284,906
|
|
|
$
|
137,033
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Change in cumulative translation Income (loss):
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation income (loss)
|
|
157
|
|
|
(3,975
|
)
|
|
1,621
|
|
|
(4,801
|
)
|
||||
Related tax (expense) benefit
|
|
(76
|
)
|
|
1,611
|
|
|
(654
|
)
|
|
1,908
|
|
||||
Change in unrealized gains (losses) on available-for-sale securities:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses)
|
|
82,064
|
|
|
(172,209
|
)
|
|
111,393
|
|
|
(194,311
|
)
|
||||
Related tax (expense) benefit
|
|
(33,203
|
)
|
|
69,666
|
|
|
(45,008
|
)
|
|
79,332
|
|
||||
Reclassification adjustment for losses (gains) included in net income
|
|
16,480
|
|
|
(775
|
)
|
|
16,421
|
|
|
(730
|
)
|
||||
Related tax (benefit) expense
|
|
(6,653
|
)
|
|
296
|
|
|
(6,630
|
)
|
|
278
|
|
||||
Cumulative-effect adjustment for unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of amortization
|
|
36,653
|
|
|
—
|
|
|
36,653
|
|
|
—
|
|
||||
Related tax expense, net of amortization
|
|
(14,756
|
)
|
|
—
|
|
|
(14,756
|
)
|
|
—
|
|
||||
Other comprehensive income (loss), net of tax
|
|
80,666
|
|
|
(105,386
|
)
|
|
99,040
|
|
|
(118,324
|
)
|
||||
Comprehensive income (loss)
|
|
90,866
|
|
|
(28,898
|
)
|
|
383,946
|
|
|
18,709
|
|
||||
Comprehensive loss (income) attributable to noncontrolling interests
|
|
40,597
|
|
|
(27,904
|
)
|
|
(142,808
|
)
|
|
(47,558
|
)
|
||||
Comprehensive income (loss) attributable to SVBFG
|
|
$
|
131,463
|
|
|
$
|
(56,802
|
)
|
|
$
|
241,138
|
|
|
$
|
(28,849
|
)
|
|
|
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
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2012
|
|
44,627,182
|
|
|
$
|
45
|
|
|
$
|
547,079
|
|
|
$
|
1,174,878
|
|
|
$
|
108,553
|
|
|
$
|
1,830,555
|
|
|
$
|
774,678
|
|
|
$
|
2,605,233
|
|
Common stock issued under employee benefit plans, net of restricted stock cancellations
|
|
758,415
|
|
|
—
|
|
|
27,120
|
|
|
—
|
|
|
—
|
|
|
27,120
|
|
|
—
|
|
|
27,120
|
|
|||||||
Common stock issued under ESOP
|
|
74,946
|
|
|
—
|
|
|
5,166
|
|
|
—
|
|
|
—
|
|
|
5,166
|
|
|
—
|
|
|
5,166
|
|
|||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other
|
|
—
|
|
|
—
|
|
|
1,515
|
|
|
—
|
|
|
—
|
|
|
1,515
|
|
|
—
|
|
|
1,515
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,475
|
|
|
—
|
|
|
89,475
|
|
|
47,558
|
|
|
137,033
|
|
|||||||
Capital calls, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,903
|
|
|
1,903
|
|
|||||||
Net change in unrealized gains and losses on available-for-sale securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(115,431
|
)
|
|
(115,431
|
)
|
|
—
|
|
|
(115,431
|
)
|
|||||||
Foreign currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,893
|
)
|
|
(2,893
|
)
|
|
—
|
|
|
(2,893
|
)
|
|||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
12,445
|
|
|
—
|
|
|
—
|
|
|
12,445
|
|
|
—
|
|
|
12,445
|
|
|||||||
Other, net
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||||
Balance at June 30, 2013
|
|
45,460,543
|
|
|
$
|
45
|
|
|
$
|
593,328
|
|
|
$
|
1,264,354
|
|
|
$
|
(9,771
|
)
|
|
$
|
1,847,956
|
|
|
$
|
824,139
|
|
|
$
|
2,672,095
|
|
Balance at December 31, 2013
|
|
45,800,418
|
|
|
$
|
46
|
|
|
$
|
624,256
|
|
|
$
|
1,390,732
|
|
|
$
|
(48,764
|
)
|
|
$
|
1,966,270
|
|
|
$
|
1,113,058
|
|
|
$
|
3,079,328
|
|
Common stock issued under employee benefit plans, net of restricted stock cancellations
|
|
379,026
|
|
|
—
|
|
|
8,127
|
|
|
—
|
|
|
—
|
|
|
8,127
|
|
|
—
|
|
|
8,127
|
|
|||||||
Common stock issued under ESOP
|
|
30,762
|
|
|
—
|
|
|
3,890
|
|
|
—
|
|
|
—
|
|
|
3,890
|
|
|
—
|
|
|
3,890
|
|
|||||||
Income tax benefit from stock options exercised, vesting of restricted stock and other
|
|
—
|
|
|
—
|
|
|
6,164
|
|
|
—
|
|
|
—
|
|
|
6,164
|
|
|
—
|
|
|
6,164
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142,098
|
|
|
—
|
|
|
142,098
|
|
|
142,808
|
|
|
284,906
|
|
|||||||
Capital calls, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,419
|
|
|
6,419
|
|
|||||||
Net change in unrealized gains and losses on available-for-sale securities, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76,176
|
|
|
76,176
|
|
|
—
|
|
|
76,176
|
|
|||||||
Cumulative-effect for unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,522
|
|
|
22,522
|
|
|
—
|
|
|
22,522
|
|
|||||||
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(625
|
)
|
|
(625
|
)
|
|
—
|
|
|
(625
|
)
|
|||||||
Foreign currency translation adjustments, net of tax
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
967
|
|
|
967
|
|
|
—
|
|
|
967
|
|
|||||||
Common stock issued in public offering
|
|
4,485,000
|
|
|
5
|
|
|
434,861
|
|
|
—
|
|
|
—
|
|
|
434,866
|
|
|
—
|
|
|
434,866
|
|
|||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
15,284
|
|
|
—
|
|
|
—
|
|
|
15,284
|
|
|
—
|
|
|
15,284
|
|
|||||||
Balance at June 30, 2014
|
|
50,695,206
|
|
|
$
|
51
|
|
|
$
|
1,092,582
|
|
|
$
|
1,532,830
|
|
|
$
|
50,276
|
|
|
$
|
2,675,739
|
|
|
$
|
1,262,285
|
|
|
$
|
3,938,024
|
|
|
|
Six months ended June 30,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income before noncontrolling interests
|
|
$
|
284,906
|
|
|
$
|
137,033
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Provision for loan losses
|
|
2,441
|
|
|
24,385
|
|
||
Provision for unfunded credit commitments
|
|
3,308
|
|
|
3,361
|
|
||
Changes in fair values of derivatives, net
|
|
14,566
|
|
|
(4,296
|
)
|
||
Gains on investment securities, net
|
|
(166,592
|
)
|
|
(67,999
|
)
|
||
Depreciation and amortization
|
|
19,036
|
|
|
17,281
|
|
||
Amortization of premiums and discounts on investment securities, net
|
|
14,419
|
|
|
14,884
|
|
||
Tax expense from stock exercises
|
|
—
|
|
|
(1,346
|
)
|
||
Amortization of share-based compensation
|
|
14,765
|
|
|
12,222
|
|
||
Amortization of deferred loan fees
|
|
(39,071
|
)
|
|
(32,066
|
)
|
||
Deferred income tax expense
|
|
5,123
|
|
|
321
|
|
||
Changes in other assets and liabilities:
|
|
|
|
|
||||
Accrued interest receivable and payable, net
|
|
(11,326
|
)
|
|
(4,312
|
)
|
||
Accounts receivable and payable, net
|
|
(3,303
|
)
|
|
4,140
|
|
||
Income tax payable and receivable, net
|
|
5,176
|
|
|
(11,591
|
)
|
||
Accrued compensation
|
|
(48,848
|
)
|
|
(39,658
|
)
|
||
Foreign exchange spot contracts, net
|
|
119,577
|
|
|
20,933
|
|
||
Other, net
|
|
(12,910
|
)
|
|
(40,920
|
)
|
||
Net cash provided by operating activities
|
|
201,267
|
|
|
32,372
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchases of available-for-sale securities
|
|
(6,045,269
|
)
|
|
(220,031
|
)
|
||
Proceeds from sales of available-for-sale securities
|
|
23,708
|
|
|
8,293
|
|
||
Proceeds from maturities and pay downs of available-for-sale securities
|
|
1,050,927
|
|
|
1,337,107
|
|
||
Purchases of held-to-maturity securities
|
|
(120,426
|
)
|
|
—
|
|
||
Proceeds from maturities and pay downs of held-to-maturity securities
|
|
74,236
|
|
|
—
|
|
||
Purchases of non-marketable and other securities (cost and equity method accounting)
|
|
(13,532
|
)
|
|
(10,858
|
)
|
||
Proceeds from sales and distributions of non-marketable and other securities (cost and equity method accounting)
|
|
38,265
|
|
|
20,378
|
|
||
Purchases of non-marketable and other securities (fair value accounting)
|
|
(126,907
|
)
|
|
(65,943
|
)
|
||
Proceeds from sales and distributions of non-marketable and other securities (fair value accounting)
|
|
146,509
|
|
|
52,103
|
|
||
Net increase in loans
|
|
(440,780
|
)
|
|
(671,105
|
)
|
||
Proceeds from recoveries of charged-off loans
|
|
2,933
|
|
|
5,536
|
|
||
Purchases of premises and equipment
|
|
(18,744
|
)
|
|
(13,546
|
)
|
||
Net cash (used for) provided by investing activities
|
|
(5,429,080
|
)
|
|
441,934
|
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Net increase (decrease) in deposits
|
|
5,879,568
|
|
|
(486,378
|
)
|
||
Decrease in short-term borrowings
|
|
(170
|
)
|
|
(160,710
|
)
|
||
Capital contributions from noncontrolling interests, net of distributions
|
|
6,419
|
|
|
1,903
|
|
||
Tax benefit from stock exercises
|
|
6,164
|
|
|
2,861
|
|
||
Proceeds from issuance of common stock, ESPP, and ESOP
|
|
12,018
|
|
|
32,286
|
|
||
Net proceeds from public equity offering
|
|
434,866
|
|
|
—
|
|
||
Net cash provided by (used for) financing activities
|
|
6,338,865
|
|
|
(610,038
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
1,111,052
|
|
|
(135,732
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
1,538,779
|
|
|
1,008,983
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
2,649,831
|
|
|
$
|
873,251
|
|
Supplemental disclosures:
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
17,535
|
|
|
$
|
15,655
|
|
Income taxes
|
|
75,057
|
|
|
64,423
|
|
||
Noncash items during the period:
|
|
|
|
|
||||
Changes in unrealized gains and losses on available-for-sale securities, net of tax
|
|
$
|
76,176
|
|
|
$
|
(115,431
|
)
|
Transfers from available-for-sale securities to held-to-maturity
|
|
5,418,572
|
|
|
—
|
|
1.
|
Basis of Presentation
|
1.
|
We have the power to direct the activities of the VIE that most significantly impact the entity’s economic performance;
|
2.
|
The aggregate indirect and direct variable interests held by the Company have the obligation to absorb losses or the right to receive benefits from the entity that could be significant to the VIE; and,
|
3.
|
Qualitative and quantitative factors regarding the nature, size, and form of our involvement with the VIE.
|
2.
|
Stockholders’ Equity and EPS
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars and shares in thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income available to common stockholders
|
|
$
|
50,797
|
|
|
$
|
48,584
|
|
|
$
|
142,098
|
|
|
$
|
89,475
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding-basic
|
|
48,168
|
|
|
45,164
|
|
|
47,025
|
|
|
44,985
|
|
||||
Weighted average effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Stock options and ESPP
|
|
569
|
|
|
380
|
|
|
601
|
|
|
384
|
|
||||
Restricted stock units
|
|
308
|
|
|
140
|
|
|
361
|
|
|
168
|
|
||||
Denominator for diluted calculation
|
|
49,045
|
|
|
45,684
|
|
|
47,987
|
|
|
45,537
|
|
||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
1.05
|
|
|
$
|
1.08
|
|
|
$
|
3.02
|
|
|
$
|
1.99
|
|
Diluted
|
|
$
|
1.04
|
|
|
$
|
1.06
|
|
|
$
|
2.96
|
|
|
$
|
1.96
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||
(Shares in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Stock options
|
|
167
|
|
|
635
|
|
|
90
|
|
|
693
|
|
Restricted stock units
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Total
|
|
169
|
|
|
635
|
|
|
91
|
|
|
693
|
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
Income Statement Location
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Reclassification adjustment for losses (gains) included in net income
|
|
(Losses) gains on investment securities, net
|
|
$
|
16,480
|
|
|
$
|
(775
|
)
|
|
$
|
16,421
|
|
|
$
|
(730
|
)
|
Related tax (benefit) expense
|
|
Income tax expense
|
|
(6,653
|
)
|
|
296
|
|
|
(6,630
|
)
|
|
278
|
|
||||
Total reclassification adjustment for losses (gains) included in net income, net of tax
|
|
|
|
$
|
9,827
|
|
|
$
|
(479
|
)
|
|
$
|
9,791
|
|
|
$
|
(452
|
)
|
3.
|
Share-Based Compensation
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Share-based compensation expense
|
|
$
|
7,687
|
|
|
$
|
6,396
|
|
|
$
|
14,765
|
|
|
$
|
12,222
|
|
Income tax benefit related to share-based compensation expense
|
|
(2,515
|
)
|
|
(1,955
|
)
|
|
(4,675
|
)
|
|
(3,558
|
)
|
(Dollars in thousands)
|
|
Unrecognized
Expense
|
|
Average
Expected
Recognition
Period - in Years
|
||
Stock options
|
|
$
|
18,118
|
|
|
2.80
|
Restricted stock units
|
|
38,897
|
|
|
2.69
|
|
Total unrecognized share-based compensation expense
|
|
$
|
57,015
|
|
|
|
|
|
Options
|
|
Weighted
Average
Exercise Price
|
|
Weighted Average Remaining Contractual Life in Years
|
|
Aggregate
Intrinsic Value
of In-The-
Money
Options
|
|||||
Outstanding at December 31, 2013
|
|
1,514,159
|
|
|
$
|
55.27
|
|
|
|
|
|
||
Granted
|
|
229,476
|
|
|
108.30
|
|
|
|
|
|
|||
Exercised
|
|
(160,652
|
)
|
|
46.96
|
|
|
|
|
|
|||
Forfeited
|
|
(13,654
|
)
|
|
70.36
|
|
|
|
|
|
|||
Outstanding at June 30, 2014
|
|
1,569,329
|
|
|
63.74
|
|
|
4.38
|
|
$
|
83,017,236
|
|
|
Vested and expected to vest at June 30, 2014
|
|
1,510,886
|
|
|
62.94
|
|
|
4.32
|
|
81,128,378
|
|
||
Exercisable at June 30, 2014
|
|
820,343
|
|
|
50.28
|
|
|
3.28
|
|
54,421,775
|
|
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested at December 31, 2013
|
|
682,347
|
|
|
$
|
65.93
|
|
Granted
|
|
180,679
|
|
|
108.06
|
|
|
Vested
|
|
(196,253
|
)
|
|
64.08
|
|
|
Forfeited
|
|
(11,549
|
)
|
|
71.33
|
|
|
Nonvested at June 30, 2014
|
|
655,224
|
|
|
78.00
|
|
4.
|
Cash and Cash Equivalents
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Cash and due from banks (1)
|
|
$
|
2,589,946
|
|
|
$
|
1,349,688
|
|
Securities purchased under agreements to resell (2)
|
|
53,764
|
|
|
172,989
|
|
||
Other short-term investment securities
|
|
6,121
|
|
|
16,102
|
|
||
Total cash and cash equivalents
|
|
$
|
2,649,831
|
|
|
$
|
1,538,779
|
|
|
(1)
|
At
June 30, 2014
and
December 31, 2013
,
$1.7 billion
and
$715 million
, respectively, of our cash and due from banks was deposited at the Federal Reserve Bank and was earning interest at the Federal Funds target rate, and interest-earning deposits in other financial institutions were
$443 million
and
$300 million
, respectively.
|
(2)
|
At
June 30, 2014
and
December 31, 2013
, securities purchased under agreements to resell were collateralized by U.S. Treasury securities and U.S. agency securities with aggregate fair values of
$55 million
and
$176 million
, respectively. None of these securities received as collateral were sold or repledged as of
June 30, 2014
or
December 31, 2013
.
|
5.
|
Investment Securities
|
|
|
June 30, 2014
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Carrying
Value
|
||||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
|
$
|
4,871,469
|
|
|
$
|
11,526
|
|
|
$
|
(823
|
)
|
|
$
|
4,882,172
|
|
U.S. agency debentures
|
|
3,714,346
|
|
|
41,999
|
|
|
(10,472
|
)
|
|
3,745,873
|
|
||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
2,128,052
|
|
|
28,146
|
|
|
(13,369
|
)
|
|
2,142,829
|
|
||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
887,862
|
|
|
3,073
|
|
|
(23
|
)
|
|
890,912
|
|
||||
Equity securities
|
|
11,950
|
|
|
629
|
|
|
(1,575
|
)
|
|
11,004
|
|
||||
Total available-for-sale securities
|
|
$
|
11,613,679
|
|
|
$
|
85,373
|
|
|
$
|
(26,262
|
)
|
|
$
|
11,672,790
|
|
|
|
December 31, 2013
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Carrying
Value
|
||||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency debentures
|
|
$
|
4,344,652
|
|
|
$
|
41,365
|
|
|
$
|
(40,785
|
)
|
|
$
|
4,345,232
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
2,472,528
|
|
|
17,189
|
|
|
(16,141
|
)
|
|
2,473,576
|
|
||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
3,386,670
|
|
|
24,510
|
|
|
(85,422
|
)
|
|
3,325,758
|
|
||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
1,183,333
|
|
|
3,363
|
|
|
(123
|
)
|
|
1,186,573
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
581,475
|
|
|
552
|
|
|
(17,423
|
)
|
|
564,604
|
|
||||
Municipal bonds and notes
|
|
82,024
|
|
|
4,024
|
|
|
(21
|
)
|
|
86,027
|
|
||||
Equity securities
|
|
4,842
|
|
|
692
|
|
|
(483
|
)
|
|
5,051
|
|
||||
Total available-for-sale securities
|
|
$
|
12,055,524
|
|
|
$
|
91,695
|
|
|
$
|
(160,398
|
)
|
|
$
|
11,986,821
|
|
|
|
June 30, 2014
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury securities
|
|
$
|
698,273
|
|
|
$
|
(823
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
698,273
|
|
|
$
|
(823
|
)
|
U.S. agency debentures
|
|
200,773
|
|
|
(290
|
)
|
|
555,839
|
|
|
(10,182
|
)
|
|
756,612
|
|
|
(10,472
|
)
|
||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
135,122
|
|
|
(189
|
)
|
|
479,641
|
|
|
(13,180
|
)
|
|
614,763
|
|
|
(13,369
|
)
|
||||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
75,974
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
75,974
|
|
|
(23
|
)
|
||||||
Equity securities
|
|
7,335
|
|
|
(1,575
|
)
|
|
—
|
|
|
—
|
|
|
7,335
|
|
|
(1,575
|
)
|
||||||
Total temporarily impaired securities: (1)
|
|
$
|
1,117,477
|
|
|
$
|
(2,900
|
)
|
|
$
|
1,035,480
|
|
|
$
|
(23,362
|
)
|
|
$
|
2,152,957
|
|
|
$
|
(26,262
|
)
|
|
(1)
|
As of
June 30, 2014
, we identified a total of
81
investments that were in unrealized loss positions, of which
33
investments totaling
$1.0 billion
with unrealized losses of
$23.4 million
have been in an impaired position for a period of time greater than 12 months. As of
June 30, 2014
, we do not intend to sell any impaired fixed income investment securities prior to recovery of our adjusted cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our adjusted cost basis. Based on our analysis as of
June 30, 2014
, we deem all impairments to be temporary, and therefore changes in value for our temporarily impaired securities as of the same date are included in other comprehensive income. Market valuations and impairment analyses on assets in the available-for-sale securities portfolio are reviewed and monitored on a quarterly basis.
|
|
|
December 31, 2013
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
||||||||||||
U.S. agency debentures
|
|
$
|
1,821,045
|
|
|
$
|
(40,785
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,821,045
|
|
|
$
|
(40,785
|
)
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency-issued mortgage-backed securities
|
|
1,480,870
|
|
|
(14,029
|
)
|
|
19,830
|
|
|
(2,112
|
)
|
|
1,500,700
|
|
|
(16,141
|
)
|
||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
2,098,137
|
|
|
(79,519
|
)
|
|
134,420
|
|
|
(5,903
|
)
|
|
2,232,557
|
|
|
(85,422
|
)
|
||||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
109,699
|
|
|
(123
|
)
|
|
—
|
|
|
—
|
|
|
109,699
|
|
|
(123
|
)
|
||||||
Agency-issued commercial mortgage-backed securities
|
|
464,171
|
|
|
(17,423
|
)
|
|
—
|
|
|
—
|
|
|
464,171
|
|
|
(17,423
|
)
|
||||||
Municipal bonds and notes
|
|
3,404
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
3,404
|
|
|
(21
|
)
|
||||||
Equity securities
|
|
910
|
|
|
(483
|
)
|
|
—
|
|
|
—
|
|
|
910
|
|
|
(483
|
)
|
||||||
Total temporarily impaired securities
|
|
$
|
5,978,236
|
|
|
$
|
(152,383
|
)
|
|
$
|
154,250
|
|
|
$
|
(8,015
|
)
|
|
$
|
6,132,486
|
|
|
$
|
(160,398
|
)
|
|
|
June 30, 2014
|
|||||||||||||||||||||||||||||||||
|
|
Total
|
|
One Year
or Less
|
|
After One Year to
Five Years
|
|
After Five Years to
Ten Years
|
|
After
Ten Years
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Carrying
Value
|
|
Weighted-
Average
Yield
|
|
Carrying
Value
|
|
Weighted-
Average
Yield
|
|
Carrying
Value
|
|
Weighted-
Average
Yield
|
|
Carrying
Value
|
|
Weighted-
Average
Yield
|
|
Carrying
Value
|
|
Weighted-
Average
Yield
|
|||||||||||||||
U.S. treasury securities
|
|
$
|
4,882,172
|
|
|
1.11
|
%
|
|
$
|
50,062
|
|
|
0.12
|
%
|
|
$
|
4,337,387
|
|
|
1.01
|
%
|
|
$
|
494,723
|
|
|
2.03
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. agency debentures
|
|
3,745,873
|
|
|
1.62
|
|
|
590,227
|
|
|
1.47
|
|
|
2,231,645
|
|
|
1.55
|
|
|
924,001
|
|
|
1.89
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
2,142,829
|
|
|
2.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
380,924
|
|
|
2.69
|
|
|
1,761,905
|
|
|
1.87
|
|
|||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
890,912
|
|
|
0.71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
890,912
|
|
|
0.71
|
|
|||||
Total
|
|
$
|
11,661,786
|
|
|
1.41
|
|
|
$
|
640,289
|
|
|
1.36
|
|
|
$
|
6,569,032
|
|
|
1.19
|
|
|
$
|
1,799,648
|
|
|
2.10
|
|
|
$
|
2,652,817
|
|
|
1.48
|
|
|
|
June 30, 2014
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value
|
||||||||
Held-to-maturity securities, at cost:
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency debentures (1)
|
|
$
|
318,260
|
|
|
$
|
1,244
|
|
|
$
|
(165
|
)
|
|
$
|
319,339
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
3,051,644
|
|
|
847
|
|
|
(3,991
|
)
|
|
3,048,500
|
|
||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
1,309,382
|
|
|
619
|
|
|
(8,939
|
)
|
|
1,301,062
|
|
||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
148,422
|
|
|
19
|
|
|
(1
|
)
|
|
148,440
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
550,269
|
|
|
2,149
|
|
|
(515
|
)
|
|
551,903
|
|
||||
Municipal bonds and notes
|
|
85,943
|
|
|
16
|
|
|
(207
|
)
|
|
85,752
|
|
||||
Total held-to-maturity securities
|
|
$
|
5,463,920
|
|
|
$
|
4,894
|
|
|
$
|
(13,818
|
)
|
|
$
|
5,454,996
|
|
|
(1)
|
Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.
|
|
|
June 30, 2014
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer (1)
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
|
Fair Value of
Investments
|
|
Unrealized
Losses
|
||||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. agency debentures
|
|
$
|
171,001
|
|
|
$
|
(105
|
)
|
|
$
|
48,590
|
|
|
$
|
(60
|
)
|
|
$
|
219,591
|
|
|
$
|
(165
|
)
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency-issued mortgage-backed securities
|
|
2,473,332
|
|
|
(3,945
|
)
|
|
20,180
|
|
|
(46
|
)
|
|
2,493,512
|
|
|
(3,991
|
)
|
||||||
Agency-issued collateralized mortgage obligations—fixed rate
|
|
383,763
|
|
|
(2,035
|
)
|
|
850,606
|
|
|
(6,904
|
)
|
|
1,234,369
|
|
|
(8,939
|
)
|
||||||
Agency-issued collateralized mortgage obligations—variable rate
|
|
10,799
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
10,799
|
|
|
(1
|
)
|
||||||
Agency-issued commercial mortgage-backed securities
|
|
268,818
|
|
|
(515
|
)
|
|
—
|
|
|
—
|
|
|
268,818
|
|
|
(515
|
)
|
||||||
Municipal bonds and notes
|
|
69,524
|
|
|
(207
|
)
|
|
—
|
|
|
—
|
|
|
69,524
|
|
|
(207
|
)
|
||||||
Total temporarily impaired securities (2):
|
|
$
|
3,377,237
|
|
|
$
|
(6,808
|
)
|
|
$
|
919,376
|
|
|
$
|
(7,010
|
)
|
|
$
|
4,296,613
|
|
|
$
|
(13,818
|
)
|
|
(1)
|
Represents securities in an unrealized loss position for twelve months or longer in which the amortized cost basis was re-set for those securities re-designated from AFS to HTM effective June 1, 2014.
|
(2)
|
As of
June 30, 2014
, we identified a total of
276
investments that were in unrealized loss positions, of which
31
investments totaling
$919.4 million
with unrealized losses of
$7.0 million
have been in an impaired position for a period of time greater than 12 months. As of
June 30, 2014
, we do not intend to sell any impaired fixed income investment securities prior to recovery of our adjusted cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our adjusted cost basis, which is consistent with our classification of these securities. Based on our analysis as of
June 30, 2014
, we deem all impairments to be temporary. Market valuations and impairment analyses on assets in the held-to-maturity securities portfolio are reviewed and monitored on a quarterly basis.
|
|
|
June 30, 2014
|
|||||||||||||||||||||||||||||||||
|
|
Total
|
|
One Year
or Less
|
|
After One Year to
Five Years
|
|
After Five Years to
Ten Years
|
|
After
Ten Years
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Amortized Cost
|
|
Weighted-
Average
Yield
|
|
Amortized Cost
|
|
Weighted-
Average
Yield
|
|
Amortized Cost
|
|
Weighted-
Average
Yield
|
|
Amortized Cost
|
|
Weighted-
Average
Yield
|
|
Amortized Cost
|
|
Weighted-
Average
Yield
|
|||||||||||||||
U.S. agency debentures
|
|
$
|
318,260
|
|
|
2.93
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
318,260
|
|
|
2.93
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency-issued mortgage-backed securities
|
|
3,051,644
|
|
|
2.42
|
|
|
—
|
|
|
—
|
|
|
47,059
|
|
|
2.43
|
|
|
949,796
|
|
|
2.19
|
|
|
2,054,789
|
|
|
2.52
|
|
|||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
1,309,382
|
|
|
1.64
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,309,382
|
|
|
1.64
|
|
|||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
148,422
|
|
|
0.65
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148,422
|
|
|
0.65
|
|
|||||
Agency-issued commercial mortgage-backed securities
|
|
550,269
|
|
|
2.20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
550,269
|
|
|
2.20
|
|
|||||
Municipal bonds and notes
|
|
85,943
|
|
|
5.99
|
|
|
3,351
|
|
|
5.42
|
|
|
26,510
|
|
|
5.80
|
|
|
43,369
|
|
|
6.06
|
|
|
12,713
|
|
|
6.29
|
|
|||||
Total
|
|
$
|
5,463,920
|
|
|
2.25
|
|
|
$
|
3,351
|
|
|
5.42
|
|
|
$
|
73,569
|
|
|
3.65
|
|
|
$
|
1,311,425
|
|
|
2.49
|
|
|
$
|
4,075,575
|
|
|
2.14
|
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Non-marketable and other securities:
|
|
|
|
|
||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments (1)
|
|
$
|
1,040,522
|
|
|
$
|
862,972
|
|
Other venture capital investments (2)
|
|
43,747
|
|
|
32,839
|
|
||
Other securities (fair value accounting) (3)
|
|
281,639
|
|
|
321,374
|
|
||
Non-marketable securities (equity method accounting):
|
|
|
|
|
||||
Other investments (4)
|
|
137,845
|
|
|
142,883
|
|
||
Low income housing tax credit funds
|
|
95,395
|
|
|
72,241
|
|
||
Non-marketable securities (cost method accounting):
|
|
|
|
|
||||
Venture capital and private equity fund investments (5)
|
|
142,136
|
|
|
148,994
|
|
||
Other investments
|
|
15,951
|
|
|
14,191
|
|
||
Total non-marketable and other securities
|
|
$
|
1,757,235
|
|
|
$
|
1,595,494
|
|
|
(1)
|
The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and our ownership percentage of each fund at
June 30, 2014
and
December 31, 2013
(fair value accounting):
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
SVB Strategic Investors Fund, LP
|
|
$
|
27,075
|
|
|
12.6
|
%
|
|
$
|
29,104
|
|
|
12.6
|
%
|
SVB Strategic Investors Fund II, LP
|
|
92,617
|
|
|
8.6
|
|
|
96,185
|
|
|
8.6
|
|
||
SVB Strategic Investors Fund III, LP
|
|
257,489
|
|
|
5.9
|
|
|
260,272
|
|
|
5.9
|
|
||
SVB Strategic Investors Fund IV, LP
|
|
307,600
|
|
|
5.0
|
|
|
226,729
|
|
|
5.0
|
|
||
Strategic Investors Fund V Funds
|
|
191,024
|
|
|
Various
|
|
|
118,181
|
|
|
Various
|
|
||
Strategic Investors Fund VI Funds
|
|
38,879
|
|
|
0.2
|
|
|
7,944
|
|
|
0.2
|
|
||
SVB Capital Preferred Return Fund, LP
|
|
61,573
|
|
|
20.0
|
|
|
59,028
|
|
|
20.0
|
|
||
SVB Capital—NT Growth Partners, LP
|
|
63,026
|
|
|
33.0
|
|
|
61,126
|
|
|
33.0
|
|
||
SVB Capital Partners II, LP (i)
|
|
595
|
|
|
5.1
|
|
|
708
|
|
|
5.1
|
|
||
Other private equity fund (ii)
|
|
644
|
|
|
58.2
|
|
|
3,695
|
|
|
58.2
|
|
||
Total venture capital and private equity fund investments
|
|
$
|
1,040,522
|
|
|
|
|
$
|
862,972
|
|
|
|
|
(i)
|
At
June 30, 2014
, we had a direct ownership interest of
1.3 percent
and an indirect ownership interest of
3.8 percent
in the fund through our ownership interest of SVB Strategic Investors Fund II, LP.
|
(ii)
|
At
June 30, 2014
, we had a direct ownership interest of
41.5 percent
and indirect ownership interests of
12.6 percent
and
4.1 percent
in the fund through our ownership interest of SVB Capital—NT Growth Partners, LP and SVB Capital Preferred Return Fund, LP, respectively.
|
(2)
|
The following table shows the amounts of other venture capital investments held by the following consolidated funds and our ownership percentage of each fund at
June 30, 2014
and
December 31, 2013
(fair value accounting):
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
Silicon Valley BancVentures, LP
|
|
$
|
6,177
|
|
|
10.7
|
%
|
|
$
|
6,564
|
|
|
10.7
|
%
|
SVB Capital Partners II, LP (i)
|
|
18,471
|
|
|
5.1
|
|
|
22,684
|
|
|
5.1
|
|
||
Capital Partners III, LP
|
|
15,000
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
||
SVB Capital Shanghai Yangpu Venture Capital Fund
|
|
4,099
|
|
|
6.8
|
|
|
3,591
|
|
|
6.8
|
|
||
Total other venture capital investments
|
|
$
|
43,747
|
|
|
|
|
$
|
32,839
|
|
|
|
|
(i)
|
At
June 30, 2014
, we had a direct ownership interest of
1.3 percent
and an indirect ownership interest of
3.8 percent
in the fund through our ownership of SVB Strategic Investors Fund II, LP.
|
(3)
|
Investments classified as other securities (fair value accounting) represent direct equity investments in public companies held by our consolidated funds. At June 30, 2014, the amount primarily includes total unrealized gains of
$193.9 million
in one public company, FireEye, Inc. ("FireEye"). The extent to which any unrealized gains (or losses) will become realized is subject to a variety of factors, including among other things, changes in prevailing market prices and the timing of any sales or distribution of securities, which are subject to our securities sales and governance processes and may also be constrained by lock-up agreements. None of the FireEye related investments currently are subject to a lock-up agreement.
|
(4)
|
The following table shows the carrying value and our ownership percentage of each investment at
June 30, 2014
and
December 31, 2013
(equity method accounting):
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ownership %
|
|
Amount
|
|
Ownership %
|
||||||
Gold Hill Capital 2008, LP (i)
|
|
$
|
20,474
|
|
|
15.5
|
%
|
|
$
|
21,867
|
|
|
15.5
|
%
|
China Joint Venture investment
|
|
79,182
|
|
|
50.0
|
|
|
79,940
|
|
|
50.0
|
|
||
Other investments
|
|
38,189
|
|
|
Various
|
|
|
41,076
|
|
|
Various
|
|
||
Total other investments (equity method accounting)
|
|
$
|
137,845
|
|
|
|
|
$
|
142,883
|
|
|
|
|
(i)
|
At
June 30, 2014
, we had a direct ownership interest of
11.5 percent
in the fund and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of
4.0 percent
.
|
(5)
|
Represents investments in
282
and
288
funds (primarily venture capital funds) at
June 30, 2014
and
December 31, 2013
, respectively, where our ownership interest is typically less than
5%
of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships operating activities and financial policies. The carrying value, and estimated fair value, of these venture capital and private equity fund investments (cost method accounting) was
$142 million
, and
$230 million
, respectively, as of
June 30, 2014
. The carrying value, and estimated fair value, of these venture capital and private equity fund investments (cost method accounting) was
$149 million
and
$215 million
, respectively, as of
December 31, 2013
.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Gross gains on investment securities:
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities, at fair value (1)
|
|
$
|
224
|
|
|
$
|
2,850
|
|
|
$
|
597
|
|
|
$
|
2,850
|
|
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
88,003
|
|
|
44,339
|
|
|
199,439
|
|
|
71,720
|
|
||||
Other venture capital investments
|
|
1,973
|
|
|
200
|
|
|
4,555
|
|
|
2,840
|
|
||||
Other securities (fair value accounting) (2)
|
|
13,816
|
|
|
2,427
|
|
|
130,566
|
|
|
4,345
|
|
||||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Other investments
|
|
2,886
|
|
|
4,754
|
|
|
6,528
|
|
|
7,469
|
|
||||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
1,762
|
|
|
767
|
|
|
5,065
|
|
|
1,790
|
|
||||
Other investments
|
|
5,021
|
|
|
191
|
|
|
5,155
|
|
|
336
|
|
||||
Total gross gains on investment securities
|
|
113,685
|
|
|
55,528
|
|
|
351,905
|
|
|
91,350
|
|
||||
Gross losses on investment securities:
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities, at fair value (1)
|
|
(16,704
|
)
|
|
(2,075
|
)
|
|
(17,017
|
)
|
|
(2,120
|
)
|
||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
(50,558
|
)
|
|
(10,703
|
)
|
|
(50,659
|
)
|
|
(15,445
|
)
|
||||
Other venture capital investments
|
|
(1,297
|
)
|
|
(1,190
|
)
|
|
(2,041
|
)
|
|
(1,654
|
)
|
||||
Other securities (fair value accounting) (2)
|
|
(101,014
|
)
|
|
(461
|
)
|
|
(113,787
|
)
|
|
(2,534
|
)
|
||||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Other investments
|
|
(828
|
)
|
|
(232
|
)
|
|
(1,040
|
)
|
|
(477
|
)
|
||||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments (3)
|
|
(353
|
)
|
|
(304
|
)
|
|
(509
|
)
|
|
(773
|
)
|
||||
Other investments
|
|
(251
|
)
|
|
(2
|
)
|
|
(260
|
)
|
|
(348
|
)
|
||||
Total gross losses on investment securities
|
|
(171,005
|
)
|
|
(14,967
|
)
|
|
(185,313
|
)
|
|
(23,351
|
)
|
||||
(Losses) gains on investment securities, net
|
|
$
|
(57,320
|
)
|
|
$
|
40,561
|
|
|
$
|
166,592
|
|
|
$
|
67,999
|
|
|
(1)
|
Includes realized gains (losses) on sales of available-for-sale equity securities that are recognized in the income statement. Unrealized gains (losses) on available-for-sale fixed income and equity securities are recognized in other comprehensive income. The cost basis of available-for-sale securities sold is determined on a specific identification basis.
|
(2)
|
Other securities (fair value accounting) includes net losses of
$84.9 million
(including
$20.4 million
of realized gains) for the three months ended June 30, 2014, and net gains of
$28.1 million
(including
$66.5 million
of realized gains) for the six months ended June 30, 2014, attributable to one public company, FireEye. The extent to which any unrealized gains (or losses) will become realized is subject to a variety of factors, including among other things, changes in prevailing market prices and the timing of any sales or distribution of securities, which are subject to our securities sales and governance processes and may also be constrained by lock-up agreements. None of the FireEye related investments currently are subject to a lock-up agreement.
|
(3)
|
For the three months ended June 30, 2014 and 2013, includes OTTI losses of
$0.3 million
from the declines in value for
12
of the
282
investments and
$0.3 million
from the declines in value for
12
of the
303
investments, respectively. For the six months ended June 30, 2014 and 2013, includes OTTI losses of
$0.4 million
from the declines in value for
18
of the
282
investments and
$0.8 million
from the declines in value for
27
of the
303
investments, respectively. We concluded that any declines in value for the remaining investments were temporary, and as such, no OTTI was required to be recognized.
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Commercial loans:
|
|
|
|
|
||||
Software
|
|
$
|
4,212,190
|
|
|
$
|
4,102,636
|
|
Hardware
|
|
1,144,144
|
|
|
1,213,032
|
|
||
Venture capital/private equity
|
|
2,646,397
|
|
|
2,386,054
|
|
||
Life science
|
|
1,166,231
|
|
|
1,170,220
|
|
||
Premium wine
|
|
174,837
|
|
|
149,841
|
|
||
Other
|
|
244,914
|
|
|
288,904
|
|
||
Total commercial loans
|
|
9,588,713
|
|
|
9,310,687
|
|
||
Real estate secured loans:
|
|
|
|
|
||||
Premium wine (1)
|
|
546,876
|
|
|
514,993
|
|
||
Consumer loans (2)
|
|
984,583
|
|
|
873,255
|
|
||
Other
|
|
30,355
|
|
|
30,743
|
|
||
Total real estate secured loans
|
|
1,561,814
|
|
|
1,418,991
|
|
||
Construction loans
|
|
76,221
|
|
|
76,997
|
|
||
Consumer loans
|
|
121,963
|
|
|
99,711
|
|
||
Total loans, net of unearned income (3)
|
|
$
|
11,348,711
|
|
|
$
|
10,906,386
|
|
|
(1)
|
Included in our premium wine portfolio are gross construction loans of
$107 million
and
$112 million
at
June 30, 2014
and
December 31, 2013
, respectively.
|
(2)
|
Consumer loans secured by real estate at
June 30, 2014
and
December 31, 2013
were comprised of the following:
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Loans for personal residence
|
|
$
|
785,914
|
|
|
$
|
685,327
|
|
Loans to eligible employees
|
|
129,116
|
|
|
121,548
|
|
||
Home equity lines of credit
|
|
69,553
|
|
|
66,380
|
|
||
Consumer loans secured by real estate
|
|
$
|
984,583
|
|
|
$
|
873,255
|
|
(3)
|
Included within our total loan portfolio are credit card loans of
$109 million
and
$85 million
at
June 30, 2014
and
December 31, 2013
, respectively.
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Commercial loans:
|
|
|
|
|
||||
Software
|
|
$
|
4,212,190
|
|
|
$
|
4,102,636
|
|
Hardware
|
|
1,144,144
|
|
|
1,213,032
|
|
||
Venture capital/private equity
|
|
2,646,397
|
|
|
2,386,054
|
|
||
Life science
|
|
1,166,231
|
|
|
1,170,220
|
|
||
Premium wine
|
|
721,713
|
|
|
664,834
|
|
||
Other
|
|
351,490
|
|
|
396,644
|
|
||
Total commercial loans
|
|
10,242,165
|
|
|
9,933,420
|
|
||
Consumer loans:
|
|
|
|
|
||||
Real estate secured loans
|
|
984,583
|
|
|
873,255
|
|
||
Other consumer loans
|
|
121,963
|
|
|
99,711
|
|
||
Total consumer loans
|
|
1,106,546
|
|
|
972,966
|
|
||
Total loans, net of unearned income
|
|
$
|
11,348,711
|
|
|
$
|
10,906,386
|
|
(Dollars in thousands)
|
|
30 - 59
Days Past
Due
|
|
60 - 89
Days Past
Due
|
|
Greater
Than 90
Days Past
Due
|
|
Total Past
Due
|
|
Current
|
|
Loans Past Due
90 Days or
More Still
Accruing
Interest
|
||||||||||||
June 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software
|
|
$
|
9,102
|
|
|
$
|
610
|
|
|
$
|
56
|
|
|
$
|
9,768
|
|
|
$
|
4,226,640
|
|
|
$
|
56
|
|
Hardware
|
|
9,047
|
|
|
4
|
|
|
37
|
|
|
9,088
|
|
|
1,140,049
|
|
|
37
|
|
||||||
Venture capital/private equity
|
|
19,588
|
|
|
1
|
|
|
—
|
|
|
19,589
|
|
|
2,651,011
|
|
|
—
|
|
||||||
Life science
|
|
1,892
|
|
|
786
|
|
|
—
|
|
|
2,678
|
|
|
1,174,250
|
|
|
—
|
|
||||||
Premium wine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
722,742
|
|
|
—
|
|
||||||
Other
|
|
211
|
|
|
27
|
|
|
—
|
|
|
238
|
|
|
353,444
|
|
|
—
|
|
||||||
Total commercial loans
|
|
39,840
|
|
|
1,428
|
|
|
93
|
|
|
41,361
|
|
|
10,268,136
|
|
|
93
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate secured loans
|
|
167
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|
983,810
|
|
|
—
|
|
||||||
Other consumer loans
|
|
21
|
|
|
1
|
|
|
—
|
|
|
22
|
|
|
121,458
|
|
|
—
|
|
||||||
Total consumer loans
|
|
188
|
|
|
1
|
|
|
—
|
|
|
189
|
|
|
1,105,268
|
|
|
—
|
|
||||||
Total gross loans excluding impaired loans
|
|
40,028
|
|
|
1,429
|
|
|
93
|
|
|
41,550
|
|
|
11,373,404
|
|
|
93
|
|
||||||
Impaired loans
|
|
36
|
|
|
3,722
|
|
|
1,394
|
|
|
5,152
|
|
|
17,194
|
|
|
—
|
|
||||||
Total gross loans
|
|
$
|
40,064
|
|
|
$
|
5,151
|
|
|
$
|
1,487
|
|
|
$
|
46,702
|
|
|
$
|
11,390,598
|
|
|
$
|
93
|
|
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software
|
|
$
|
9,804
|
|
|
$
|
1,291
|
|
|
$
|
99
|
|
|
$
|
11,194
|
|
|
$
|
4,102,546
|
|
|
$
|
99
|
|
Hardware
|
|
2,679
|
|
|
3,965
|
|
|
—
|
|
|
6,644
|
|
|
1,198,169
|
|
|
—
|
|
||||||
Venture capital/private equity
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
2,408,382
|
|
|
—
|
|
||||||
Life science
|
|
395
|
|
|
131
|
|
|
—
|
|
|
526
|
|
|
1,179,462
|
|
|
—
|
|
||||||
Premium wine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
665,755
|
|
|
—
|
|
||||||
Other
|
|
1,580
|
|
|
142
|
|
|
—
|
|
|
1,722
|
|
|
397,416
|
|
|
—
|
|
||||||
Total commercial loans
|
|
14,462
|
|
|
5,529
|
|
|
99
|
|
|
20,090
|
|
|
9,951,730
|
|
|
99
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate secured loans
|
|
240
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|
872,586
|
|
|
—
|
|
||||||
Other consumer loans
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
98,965
|
|
|
—
|
|
||||||
Total consumer loans
|
|
248
|
|
|
—
|
|
|
—
|
|
|
248
|
|
|
971,551
|
|
|
—
|
|
||||||
Total gross loans excluding impaired loans
|
|
14,710
|
|
|
5,529
|
|
|
99
|
|
|
20,338
|
|
|
10,923,281
|
|
|
99
|
|
||||||
Impaired loans
|
|
4,657
|
|
|
7,043
|
|
|
4,339
|
|
|
16,039
|
|
|
35,610
|
|
|
—
|
|
||||||
Total gross loans
|
|
$
|
19,367
|
|
|
$
|
12,572
|
|
|
$
|
4,438
|
|
|
$
|
36,377
|
|
|
$
|
10,958,891
|
|
|
$
|
99
|
|
(Dollars in thousands)
|
|
Impaired loans for
which there is a
related allowance
for loan losses
|
|
Impaired loans for
which there is no
related allowance
for loan losses
|
|
Total carrying value of impaired loans
|
|
Total unpaid
principal of impaired loans
|
||||||||
June 30, 2014:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software
|
|
$
|
13,619
|
|
|
$
|
797
|
|
|
$
|
14,416
|
|
|
$
|
15,747
|
|
Hardware
|
|
5,502
|
|
|
—
|
|
|
5,502
|
|
|
5,793
|
|
||||
Venture capital/private equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Life science
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Premium wine
|
|
—
|
|
|
1,373
|
|
|
1,373
|
|
|
1,761
|
|
||||
Other
|
|
499
|
|
|
—
|
|
|
499
|
|
|
551
|
|
||||
Total commercial loans
|
|
19,620
|
|
|
2,170
|
|
|
21,790
|
|
|
23,852
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
—
|
|
|
220
|
|
|
220
|
|
|
1,424
|
|
||||
Other consumer loans
|
|
336
|
|
|
—
|
|
|
336
|
|
|
628
|
|
||||
Total consumer loans
|
|
336
|
|
|
220
|
|
|
556
|
|
|
2,052
|
|
||||
Total
|
|
$
|
19,956
|
|
|
$
|
2,390
|
|
|
$
|
22,346
|
|
|
$
|
25,904
|
|
December 31, 2013:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software
|
|
$
|
27,308
|
|
|
$
|
310
|
|
|
$
|
27,618
|
|
|
$
|
28,316
|
|
Hardware
|
|
19,329
|
|
|
338
|
|
|
19,667
|
|
|
35,317
|
|
||||
Venture capital/private equity
|
|
40
|
|
|
—
|
|
|
40
|
|
|
40
|
|
||||
Life science
|
|
—
|
|
|
1,278
|
|
|
1,278
|
|
|
4,727
|
|
||||
Premium wine
|
|
—
|
|
|
1,442
|
|
|
1,442
|
|
|
1,778
|
|
||||
Other
|
|
690
|
|
|
—
|
|
|
690
|
|
|
718
|
|
||||
Total commercial loans
|
|
47,367
|
|
|
3,368
|
|
|
50,735
|
|
|
70,896
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
—
|
|
|
244
|
|
|
244
|
|
|
1,434
|
|
||||
Other consumer loans
|
|
670
|
|
|
—
|
|
|
670
|
|
|
941
|
|
||||
Total consumer loans
|
|
670
|
|
|
244
|
|
|
914
|
|
|
2,375
|
|
||||
Total
|
|
$
|
48,037
|
|
|
$
|
3,612
|
|
|
$
|
51,649
|
|
|
$
|
73,271
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Average impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software
|
|
$
|
15,742
|
|
|
$
|
5,473
|
|
|
$
|
15,210
|
|
|
$
|
4,794
|
|
Hardware
|
|
6,860
|
|
|
24,519
|
|
|
11,440
|
|
|
24,076
|
|
||||
Venture capital/private equity
|
|
—
|
|
|
30
|
|
|
—
|
|
|
15
|
|
||||
Life science
|
|
552
|
|
|
596
|
|
|
787
|
|
|
455
|
|
||||
Premium wine
|
|
1,398
|
|
|
1,536
|
|
|
1,415
|
|
|
2,936
|
|
||||
Other
|
|
1,699
|
|
|
4,165
|
|
|
1,738
|
|
|
4,692
|
|
||||
Total commercial loans
|
|
26,251
|
|
|
36,319
|
|
|
30,590
|
|
|
36,968
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
224
|
|
|
4,071
|
|
|
231
|
|
|
3,374
|
|
||||
Other consumer loans
|
|
374
|
|
|
1,069
|
|
|
431
|
|
|
1,099
|
|
||||
Total consumer loans
|
|
598
|
|
|
5,140
|
|
|
662
|
|
|
4,473
|
|
||||
Total average impaired loans
|
|
$
|
26,849
|
|
|
$
|
41,459
|
|
|
$
|
31,252
|
|
|
$
|
41,441
|
|
Three months ended June 30, 2014 (dollars in thousands)
|
|
Beginning Balance March 31, 2014
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for
(Reduction of) Loan Losses
|
|
Ending Balance June 30, 2014
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software
|
|
$
|
55,241
|
|
|
$
|
(4,015
|
)
|
|
$
|
119
|
|
|
$
|
1,894
|
|
|
$
|
53,239
|
|
Hardware
|
|
25,236
|
|
|
(412
|
)
|
|
1,182
|
|
|
(1,226
|
)
|
|
24,780
|
|
|||||
Venture capital/private equity
|
|
17,676
|
|
|
—
|
|
|
—
|
|
|
1,328
|
|
|
19,004
|
|
|||||
Life science
|
|
11,474
|
|
|
(249
|
)
|
|
190
|
|
|
(818
|
)
|
|
10,597
|
|
|||||
Premium wine
|
|
3,737
|
|
|
—
|
|
|
19
|
|
|
(210
|
)
|
|
3,546
|
|
|||||
Other
|
|
4,041
|
|
|
(1,706
|
)
|
|
10
|
|
|
873
|
|
|
3,218
|
|
|||||
Total commercial loans
|
|
117,405
|
|
|
(6,382
|
)
|
|
1,520
|
|
|
1,841
|
|
|
114,384
|
|
|||||
Consumer loans
|
|
6,137
|
|
|
—
|
|
|
101
|
|
|
106
|
|
|
6,344
|
|
|||||
Total allowance for loan losses
|
|
$
|
123,542
|
|
|
$
|
(6,382
|
)
|
|
$
|
1,621
|
|
|
$
|
1,947
|
|
|
$
|
120,728
|
|
Six months ended June 30, 2014 (dollars in thousands)
|
|
Beginning Balance December 31, 2013
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for
(Reduction of) Loan Losses
|
|
Ending Balance June 30, 2014
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software
|
|
$
|
64,084
|
|
|
$
|
(12,025
|
)
|
|
$
|
233
|
|
|
$
|
947
|
|
|
$
|
53,239
|
|
Hardware
|
|
36,553
|
|
|
(12,587
|
)
|
|
1,957
|
|
|
(1,143
|
)
|
|
24,780
|
|
|||||
Venture capital/private equity
|
|
16,385
|
|
|
—
|
|
|
—
|
|
|
2,619
|
|
|
19,004
|
|
|||||
Life science
|
|
11,926
|
|
|
(930
|
)
|
|
288
|
|
|
(687
|
)
|
|
10,597
|
|
|||||
Premium wine
|
|
3,914
|
|
|
—
|
|
|
238
|
|
|
(606
|
)
|
|
3,546
|
|
|||||
Other
|
|
3,680
|
|
|
(1,990
|
)
|
|
10
|
|
|
1,518
|
|
|
3,218
|
|
|||||
Total commercial loans
|
|
136,542
|
|
|
(27,532
|
)
|
|
2,726
|
|
|
2,648
|
|
|
114,384
|
|
|||||
Consumer loans
|
|
6,344
|
|
|
—
|
|
|
207
|
|
|
(207
|
)
|
|
6,344
|
|
|||||
Total allowance for loan losses
|
|
$
|
142,886
|
|
|
$
|
(27,532
|
)
|
|
$
|
2,933
|
|
|
$
|
2,441
|
|
|
$
|
120,728
|
|
Three months ended June 30, 2013 (dollars in thousands)
|
|
Beginning Balance March 31, 2013
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for
(Reduction of) Loan Losses
|
|
Ending Balance June 30, 2013
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software
|
|
$
|
45,010
|
|
|
$
|
(3,574
|
)
|
|
$
|
397
|
|
|
$
|
4,965
|
|
|
$
|
46,798
|
|
Hardware
|
|
27,869
|
|
|
(4,434
|
)
|
|
403
|
|
|
9,350
|
|
|
33,188
|
|
|||||
Venture capital/private equity
|
|
10,482
|
|
|
—
|
|
|
—
|
|
|
3,111
|
|
|
13,593
|
|
|||||
Life science
|
|
13,946
|
|
|
(491
|
)
|
|
886
|
|
|
(2,600
|
)
|
|
11,741
|
|
|||||
Premium wine
|
|
3,699
|
|
|
—
|
|
|
41
|
|
|
53
|
|
|
3,793
|
|
|||||
Other
|
|
3,975
|
|
|
(6,007
|
)
|
|
2,375
|
|
|
3,311
|
|
|
3,654
|
|
|||||
Total commercial loans
|
|
104,981
|
|
|
(14,506
|
)
|
|
4,102
|
|
|
18,190
|
|
|
112,767
|
|
|||||
Consumer loans
|
|
7,224
|
|
|
(869
|
)
|
|
67
|
|
|
382
|
|
|
6,804
|
|
|||||
Total allowance for loan losses
|
|
$
|
112,205
|
|
|
$
|
(15,375
|
)
|
|
$
|
4,169
|
|
|
$
|
18,572
|
|
|
$
|
119,571
|
|
Six months ended June 30, 2013 (dollars in thousands)
|
|
Beginning Balance December 31, 2012
|
|
Charge-offs
|
|
Recoveries
|
|
Provision for
(Reduction of) Loan Losses
|
|
Ending Balance June 30, 2013
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Software
|
|
$
|
42,648
|
|
|
$
|
(5,092
|
)
|
|
$
|
639
|
|
|
$
|
8,603
|
|
|
$
|
46,798
|
|
Hardware
|
|
29,761
|
|
|
(6,431
|
)
|
|
849
|
|
|
9,009
|
|
|
33,188
|
|
|||||
Venture capital/private equity
|
|
9,963
|
|
|
—
|
|
|
—
|
|
|
3,630
|
|
|
13,593
|
|
|||||
Life science
|
|
13,606
|
|
|
(2,561
|
)
|
|
1,089
|
|
|
(393
|
)
|
|
11,741
|
|
|||||
Premium wine
|
|
3,523
|
|
|
—
|
|
|
131
|
|
|
139
|
|
|
3,793
|
|
|||||
Other
|
|
3,912
|
|
|
(6,048
|
)
|
|
2,381
|
|
|
3,409
|
|
|
3,654
|
|
|||||
Total commercial loans
|
|
103,413
|
|
|
(20,132
|
)
|
|
5,089
|
|
|
24,397
|
|
|
112,767
|
|
|||||
Consumer loans
|
|
7,238
|
|
|
(869
|
)
|
|
447
|
|
|
(12
|
)
|
|
6,804
|
|
|||||
Total allowance for loan losses
|
|
$
|
110,651
|
|
|
$
|
(21,001
|
)
|
|
$
|
5,536
|
|
|
$
|
24,385
|
|
|
$
|
119,571
|
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||
|
|
Individually Evaluated for
Impairment
|
|
Collectively Evaluated for
Impairment
|
|
Individually Evaluated for
Impairment
|
|
Collectively Evaluated for
Impairment
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Allowance for loan losses
|
Recorded investment in loans
|
|
Allowance for loan losses
|
Recorded investment in loans
|
|
Allowance for loan losses
|
Recorded investment in loans
|
|
Allowance for loan losses
|
Recorded investment in loans
|
||||||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Software
|
|
$
|
2,979
|
|
$
|
14,416
|
|
|
$
|
50,260
|
|
$
|
4,197,774
|
|
|
$
|
11,261
|
|
$
|
27,617
|
|
|
$
|
52,823
|
|
$
|
4,075,019
|
|
Hardware
|
|
1,443
|
|
5,502
|
|
|
23,337
|
|
1,138,642
|
|
|
9,673
|
|
19,667
|
|
|
26,880
|
|
1,193,365
|
|
||||||||
Venture capital/private equity
|
|
—
|
|
—
|
|
|
19,004
|
|
2,646,397
|
|
|
19
|
|
39
|
|
|
16,366
|
|
2,386,015
|
|
||||||||
Life science
|
|
—
|
|
—
|
|
|
10,597
|
|
1,166,231
|
|
|
—
|
|
1,278
|
|
|
11,926
|
|
1,168,942
|
|
||||||||
Premium wine
|
|
—
|
|
1,373
|
|
|
3,546
|
|
720,340
|
|
|
—
|
|
1,442
|
|
|
3,914
|
|
663,392
|
|
||||||||
Other
|
|
118
|
|
499
|
|
|
3,100
|
|
350,991
|
|
|
156
|
|
690
|
|
|
3,524
|
|
395,954
|
|
||||||||
Total commercial loans
|
|
4,540
|
|
21,790
|
|
|
109,844
|
|
10,220,375
|
|
|
21,109
|
|
50,733
|
|
|
115,433
|
|
9,882,687
|
|
||||||||
Consumer loans
|
|
141
|
|
556
|
|
|
6,203
|
|
1,105,990
|
|
|
168
|
|
915
|
|
|
6,176
|
|
972,051
|
|
||||||||
Total
|
|
$
|
4,681
|
|
$
|
22,346
|
|
|
$
|
116,047
|
|
$
|
11,326,365
|
|
|
$
|
21,277
|
|
$
|
51,648
|
|
|
$
|
121,609
|
|
$
|
10,854,738
|
|
(Dollars in thousands)
|
|
Pass
|
|
Performing
(Criticized)
|
|
Impaired
|
|
Total
|
||||||||
June 30, 2014:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software
|
|
$
|
3,956,825
|
|
|
$
|
279,583
|
|
|
$
|
14,416
|
|
|
$
|
4,250,824
|
|
Hardware
|
|
972,454
|
|
|
176,683
|
|
|
5,502
|
|
|
1,154,639
|
|
||||
Venture capital/private equity
|
|
2,668,213
|
|
|
2,387
|
|
|
—
|
|
|
2,670,600
|
|
||||
Life science
|
|
1,066,046
|
|
|
110,882
|
|
|
—
|
|
|
1,176,928
|
|
||||
Premium wine
|
|
713,329
|
|
|
9,413
|
|
|
1,373
|
|
|
724,115
|
|
||||
Other
|
|
334,167
|
|
|
19,515
|
|
|
499
|
|
|
354,181
|
|
||||
Total commercial loans
|
|
9,711,034
|
|
|
598,463
|
|
|
21,790
|
|
|
10,331,287
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
980,226
|
|
|
3,751
|
|
|
220
|
|
|
984,197
|
|
||||
Other consumer loans
|
|
118,659
|
|
|
2,821
|
|
|
336
|
|
|
121,816
|
|
||||
Total consumer loans
|
|
1,098,885
|
|
|
6,572
|
|
|
556
|
|
|
1,106,013
|
|
||||
Total gross loans
|
|
$
|
10,809,919
|
|
|
$
|
605,035
|
|
|
$
|
22,346
|
|
|
$
|
11,437,300
|
|
December 31, 2013:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software
|
|
$
|
3,875,043
|
|
|
$
|
238,697
|
|
|
$
|
27,618
|
|
|
$
|
4,141,358
|
|
Hardware
|
|
995,055
|
|
|
209,758
|
|
|
19,667
|
|
|
1,224,480
|
|
||||
Venture capital/private equity
|
|
2,408,386
|
|
|
—
|
|
|
40
|
|
|
2,408,426
|
|
||||
Life science
|
|
1,091,993
|
|
|
87,995
|
|
|
1,278
|
|
|
1,181,266
|
|
||||
Premium wine
|
|
652,747
|
|
|
13,008
|
|
|
1,442
|
|
|
667,197
|
|
||||
Other
|
|
383,602
|
|
|
15,536
|
|
|
690
|
|
|
399,828
|
|
||||
Total commercial loans
|
|
9,406,826
|
|
|
564,994
|
|
|
50,735
|
|
|
10,022,555
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate secured loans
|
|
868,789
|
|
|
4,037
|
|
|
244
|
|
|
873,070
|
|
||||
Other consumer loans
|
|
95,586
|
|
|
3,387
|
|
|
670
|
|
|
99,643
|
|
||||
Total consumer loans
|
|
964,375
|
|
|
7,424
|
|
|
914
|
|
|
972,713
|
|
||||
Total gross loans
|
|
$
|
10,371,201
|
|
|
$
|
572,418
|
|
|
$
|
51,649
|
|
|
$
|
10,995,268
|
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Loans modified in TDRs:
|
|
|
|
|
||||
Commercial loans:
|
|
|
|
|
||||
Software
|
|
$
|
13,053
|
|
|
$
|
5,860
|
|
Hardware
|
|
4,108
|
|
|
13,329
|
|
||
Venture capital/ private equity
|
|
—
|
|
|
77
|
|
||
Premium wine
|
|
2,014
|
|
|
1,442
|
|
||
Other
|
|
804
|
|
|
1,055
|
|
||
Total commercial loans
|
|
19,979
|
|
|
21,763
|
|
||
Consumer loans:
|
|
|
|
|
||||
Other consumer loans
|
|
336
|
|
|
670
|
|
||
Total consumer loans
|
|
336
|
|
|
670
|
|
||
Total
|
|
$
|
20,315
|
|
|
$
|
22,433
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Loans modified in TDRs during the period:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software
|
|
$
|
455
|
|
|
$
|
778
|
|
|
$
|
12,816
|
|
|
$
|
778
|
|
Hardware
|
|
—
|
|
|
5,629
|
|
|
—
|
|
|
5,629
|
|
||||
Venture capital/ private equity
|
|
—
|
|
|
89
|
|
|
—
|
|
|
676
|
|
||||
Premium wine
|
|
—
|
|
|
—
|
|
|
641
|
|
|
—
|
|
||||
Total commercial loans
|
|
455
|
|
|
6,496
|
|
|
13,457
|
|
|
7,083
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
||||||||
Other consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||
Total consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||
Total loans modified in TDR’s during the period (1)
|
|
$
|
455
|
|
|
$
|
6,496
|
|
|
$
|
13,457
|
|
|
$
|
7,153
|
|
|
(1)
|
There were
no
partial charge-offs on loans classified as TDRs for the
three and six months ended
June 30, 2014
. There were partial charge-offs of
$1.2 million
for both the
three and six months ended
June 30, 2013
.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
TDRs modified within the previous 12 months that defaulted during the period:
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||||
Software
|
|
$
|
236
|
|
|
$
|
—
|
|
|
$
|
236
|
|
|
$
|
—
|
|
Hardware
|
|
—
|
|
|
4,154
|
|
|
—
|
|
|
4,154
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,750
|
|
||||
Total commercial loans
|
|
236
|
|
|
4,154
|
|
|
236
|
|
|
6,904
|
|
||||
Consumer loans
|
|
—
|
|
|
70
|
|
|
—
|
|
|
70
|
|
||||
Total TDRs modified within the previous 12 months that defaulted in the period
|
|
$
|
236
|
|
|
$
|
4,224
|
|
|
$
|
236
|
|
|
$
|
6,974
|
|
7.
|
Short-Term Borrowings and Long-Term Debt
|
|
|
|
|
|
|
Carrying Value
|
||||||||
(Dollars in thousands)
|
|
Maturity
|
|
Principal value at June 30, 2014
|
|
June 30,
2014 |
|
December 31,
2013 |
||||||
Short-term borrowings:
|
|
|
|
|
|
|
|
|
||||||
Other short-term borrowings
|
|
(1)
|
|
$
|
4,910
|
|
|
$
|
4,910
|
|
|
$
|
5,080
|
|
Total short-term borrowings
|
|
|
|
|
|
$
|
4,910
|
|
|
$
|
5,080
|
|
||
Long-term debt:
|
|
|
|
|
|
|
|
|
||||||
5.375% Senior Notes
|
|
September 15, 2020
|
|
$
|
350,000
|
|
|
$
|
348,321
|
|
|
$
|
348,209
|
|
6.05% Subordinated Notes (2)
|
|
June 1, 2017
|
|
45,964
|
|
|
51,208
|
|
|
51,987
|
|
|||
7.0% Junior Subordinated Debentures
|
|
October 15, 2033
|
|
50,000
|
|
|
54,933
|
|
|
55,020
|
|
|||
Total long-term debt
|
|
|
|
|
|
$
|
454,462
|
|
|
$
|
455,216
|
|
|
(1)
|
Represents cash collateral received from counterparties in relation to market value exposures of derivative contracts in our favor, primarily for our interest rate swap agreement related to our 6.05% Subordinated Notes.
|
(2)
|
At
June 30, 2014
and
December 31, 2013
, included in the carrying value of our
6.05%
Subordinated Notes was an interest rate swap valued at
$5.7 million
and
$6.5 million
, respectively, related to hedge accounting associated with the notes.
|
8.
|
Derivative Financial Instruments
|
|
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Balance Sheet
Location
|
|
Notional or
Contractual
Amount
|
|
Fair Value
|
|
Collateral
(1)
|
|
Net
Exposure
(2)
|
|
Notional or
Contractual
Amount
|
|
Fair Value
|
|
Collateral
(1)
|
|
Net
Exposure
(2)
|
||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate risks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
|
Other assets
|
|
$
|
45,964
|
|
|
$
|
5,692
|
|
|
$
|
3,910
|
|
|
$
|
1,782
|
|
|
$
|
45,964
|
|
|
$
|
6,492
|
|
|
$
|
5,080
|
|
|
$
|
1,412
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Currency exchange risks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign exchange forwards
|
|
Other assets
|
|
3,240
|
|
|
198
|
|
|
—
|
|
|
198
|
|
|
140,760
|
|
|
1,423
|
|
|
—
|
|
|
1,423
|
|
||||||||
Foreign exchange forwards
|
|
Other liabilities
|
|
178,419
|
|
|
(1,545
|
)
|
|
—
|
|
|
(1,545
|
)
|
|
62,649
|
|
|
(634
|
)
|
|
—
|
|
|
(634
|
)
|
||||||||
Net exposure
|
|
|
|
|
|
(1,347
|
)
|
|
—
|
|
|
(1,347
|
)
|
|
|
|
789
|
|
|
—
|
|
|
789
|
|
||||||||||
Other derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity warrant assets
|
|
Other assets
|
|
182,145
|
|
|
88,905
|
|
|
—
|
|
|
88,905
|
|
|
179,934
|
|
|
103,513
|
|
|
—
|
|
|
103,513
|
|
||||||||
Other derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Client foreign exchange forwards
|
|
Other assets
|
|
417,361
|
|
|
10,759
|
|
|
1,000
|
|
|
9,759
|
|
|
424,983
|
|
|
13,673
|
|
|
—
|
|
|
13,673
|
|
||||||||
Client foreign exchange forwards
|
|
Other liabilities
|
|
347,983
|
|
|
(9,066
|
)
|
|
—
|
|
|
(9,066
|
)
|
|
367,079
|
|
|
(11,549
|
)
|
|
—
|
|
|
(11,549
|
)
|
||||||||
Client foreign currency options
|
|
Other assets
|
|
4,500
|
|
|
133
|
|
|
—
|
|
|
133
|
|
|
91,854
|
|
|
434
|
|
|
—
|
|
|
434
|
|
||||||||
Client foreign currency options
|
|
Other liabilities
|
|
4,500
|
|
|
(133
|
)
|
|
—
|
|
|
(133
|
)
|
|
91,854
|
|
|
(434
|
)
|
|
—
|
|
|
(434
|
)
|
||||||||
Loan conversion options
|
|
Other assets
|
|
1,940
|
|
|
53
|
|
|
—
|
|
|
53
|
|
|
3,455
|
|
|
314
|
|
|
—
|
|
|
314
|
|
||||||||
Client interest rate derivatives
|
|
Other assets
|
|
310,910
|
|
|
2,239
|
|
|
—
|
|
|
2,239
|
|
|
216,773
|
|
|
1,265
|
|
|
—
|
|
|
1,265
|
|
||||||||
Client interest rate derivatives
|
|
Other liabilities
|
|
310,910
|
|
|
(2,420
|
)
|
|
—
|
|
|
(2,420
|
)
|
|
216,773
|
|
|
(1,396
|
)
|
|
—
|
|
|
(1,396
|
)
|
||||||||
Net exposure
|
|
|
|
|
|
1,565
|
|
|
1,000
|
|
|
565
|
|
|
|
|
2,307
|
|
|
—
|
|
|
2,307
|
|
||||||||||
Net
|
|
|
|
|
|
$
|
94,815
|
|
|
$
|
4,910
|
|
|
$
|
89,905
|
|
|
|
|
$
|
113,101
|
|
|
$
|
5,080
|
|
|
$
|
108,021
|
|
|
(1)
|
Cash collateral received from our counterparties in relation to market value exposures of derivative contracts in our favor is recorded as a component of “short-term borrowings” on our consolidated balance sheets.
|
(2)
|
Net exposure for contracts in a gain position reflects the replacement cost in the event of nonperformance by all such counterparties. The credit ratings of our institutional counterparties as of June 30, 2014 remain at investment grade or higher and there were no material changes in their credit ratings during the
three and six months ended
June 30, 2014.
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
Statement of income location
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate risks:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net cash benefit associated with interest rate swaps
|
|
Interest expense—borrowings
|
|
$
|
638
|
|
|
$
|
633
|
|
|
$
|
1,277
|
|
|
$
|
1,267
|
|
Changes in fair value of interest rate swaps
|
|
Net gains on derivative instruments
|
|
(13
|
)
|
|
(33
|
)
|
|
(25
|
)
|
|
27
|
|
||||
Net gains associated with interest rate risk derivatives
|
|
|
|
$
|
625
|
|
|
$
|
600
|
|
|
$
|
1,252
|
|
|
$
|
1,294
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Currency exchange risks:
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Losses) gains on revaluations of foreign currency instruments
|
|
Other noninterest income
|
|
$
|
(685
|
)
|
|
$
|
(586
|
)
|
|
$
|
293
|
|
|
$
|
(7,650
|
)
|
Gains (losses) on internal foreign exchange forward contracts, net
|
|
Net gains on derivative instruments
|
|
538
|
|
|
712
|
|
|
(491
|
)
|
|
6,912
|
|
||||
Net (losses) gains associated with currency risk
|
|
|
|
$
|
(147
|
)
|
|
$
|
126
|
|
|
$
|
(198
|
)
|
|
$
|
(738
|
)
|
Other derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net gains on equity warrant assets
|
|
Net gains on derivative instruments
|
|
$
|
12,329
|
|
|
$
|
7,190
|
|
|
$
|
37,702
|
|
|
$
|
10,695
|
|
Gains on client foreign exchange forward contracts, net
|
|
Net gains on derivative instruments
|
|
$
|
170
|
|
|
$
|
124
|
|
|
$
|
472
|
|
|
$
|
173
|
|
Net (losses) gains on other derivatives (1)
|
|
Net gains on derivative instruments
|
|
$
|
(249
|
)
|
|
$
|
94
|
|
|
$
|
(716
|
)
|
|
$
|
572
|
|
|
(1)
|
Primarily represents the change in fair value of loan conversion options.
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements
|
|
|
||||||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts offset in the Statement of Financial Position
|
|
Net Amounts of Assets Presented in the Statement of Financial Position
|
|
Financial Instruments
|
|
Cash Collateral Received
|
|
Net Amount
|
||||||||||||
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
5,692
|
|
|
$
|
—
|
|
|
$
|
5,692
|
|
|
$
|
(1,782
|
)
|
|
$
|
(3,910
|
)
|
|
$
|
—
|
|
Foreign exchange forwards
|
|
10,957
|
|
|
—
|
|
|
10,957
|
|
|
(3,633
|
)
|
|
(1,000
|
)
|
|
6,324
|
|
||||||
Foreign currency options
|
|
133
|
|
|
—
|
|
|
133
|
|
|
(133
|
)
|
|
—
|
|
|
—
|
|
||||||
Client interest rate derivatives
|
|
2,239
|
|
|
—
|
|
|
2,239
|
|
|
(559
|
)
|
|
—
|
|
|
1,680
|
|
||||||
Total derivative assets:
|
|
19,021
|
|
|
—
|
|
|
19,021
|
|
|
(6,107
|
)
|
|
(4,910
|
)
|
|
8,004
|
|
||||||
Reverse repurchase, securities borrowing, and similar arrangements
|
|
53,764
|
|
|
—
|
|
|
53,764
|
|
|
(53,764
|
)
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
72,785
|
|
|
$
|
—
|
|
|
$
|
72,785
|
|
|
$
|
(59,871
|
)
|
|
$
|
(4,910
|
)
|
|
$
|
8,004
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
6,492
|
|
|
$
|
—
|
|
|
$
|
6,492
|
|
|
$
|
(1,412
|
)
|
|
$
|
(5,080
|
)
|
|
$
|
—
|
|
Foreign exchange forwards
|
|
15,096
|
|
|
—
|
|
|
15,096
|
|
|
(6,735
|
)
|
|
—
|
|
|
8,361
|
|
||||||
Foreign currency options
|
|
504
|
|
|
(70
|
)
|
|
434
|
|
|
(155
|
)
|
|
—
|
|
|
279
|
|
||||||
Client interest rate derivatives
|
|
1,265
|
|
|
—
|
|
|
1,265
|
|
|
(256
|
)
|
|
—
|
|
|
1,009
|
|
||||||
Total derivative assets:
|
|
23,357
|
|
|
(70
|
)
|
|
23,287
|
|
|
(8,558
|
)
|
|
(5,080
|
)
|
|
9,649
|
|
||||||
Reverse repurchase, securities borrowing, and similar arrangements
|
|
172,989
|
|
|
—
|
|
|
172,989
|
|
|
(172,989
|
)
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
196,346
|
|
|
$
|
(70
|
)
|
|
$
|
196,276
|
|
|
$
|
(181,547
|
)
|
|
$
|
(5,080
|
)
|
|
$
|
9,649
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements
|
|
|
||||||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts offset in the Statement of Financial Position
|
|
Net Amounts of Liabilities Presented in the Statement of Financial Position
|
|
Financial Instruments
|
|
Cash Collateral Pledged
|
|
Net Amount
|
||||||||||||
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange forwards
|
|
$
|
10,611
|
|
|
$
|
—
|
|
|
$
|
10,611
|
|
|
$
|
(6,973
|
)
|
|
$
|
—
|
|
|
$
|
3,638
|
|
Foreign currency options
|
|
133
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
—
|
|
|
133
|
|
||||||
Client interest rate derivatives
|
|
2,420
|
|
|
—
|
|
|
2,420
|
|
|
(1,861
|
)
|
|
—
|
|
|
559
|
|
||||||
Total derivative liabilities:
|
|
13,164
|
|
|
—
|
|
|
13,164
|
|
|
(8,834
|
)
|
|
—
|
|
|
4,330
|
|
||||||
Repurchase, securities lending, and similar arrangements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
13,164
|
|
|
$
|
—
|
|
|
$
|
13,164
|
|
|
$
|
(8,834
|
)
|
|
$
|
—
|
|
|
$
|
4,330
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange forwards
|
|
$
|
12,183
|
|
|
$
|
—
|
|
|
$
|
12,183
|
|
|
$
|
(8,282
|
)
|
|
$
|
—
|
|
|
$
|
3,901
|
|
Foreign currency options
|
|
504
|
|
|
(70
|
)
|
|
434
|
|
|
(279
|
)
|
|
—
|
|
|
155
|
|
||||||
Client interest rate derivatives
|
|
1,396
|
|
|
—
|
|
|
1,396
|
|
|
(1,087
|
)
|
|
—
|
|
|
309
|
|
||||||
Total derivative liabilities:
|
|
14,083
|
|
|
(70
|
)
|
|
14,013
|
|
|
(9,648
|
)
|
|
—
|
|
|
4,365
|
|
||||||
Repurchase, securities lending, and similar arrangements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
14,083
|
|
|
$
|
(70
|
)
|
|
$
|
14,013
|
|
|
$
|
(9,648
|
)
|
|
$
|
—
|
|
|
$
|
4,365
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Fund management fees
|
|
$
|
3,559
|
|
|
$
|
2,940
|
|
|
$
|
6,314
|
|
|
$
|
5,709
|
|
Service-based fee income
|
|
2,252
|
|
|
2,001
|
|
|
4,279
|
|
|
3,805
|
|
||||
(Losses) gains on revaluation of foreign currency instruments (1)
|
|
(685
|
)
|
|
(586
|
)
|
|
293
|
|
|
(7,650
|
)
|
||||
Other (2)
|
|
3,636
|
|
|
3,279
|
|
|
9,076
|
|
|
5,323
|
|
||||
Total other noninterest income
|
|
$
|
8,762
|
|
|
$
|
7,634
|
|
|
$
|
19,962
|
|
|
$
|
7,187
|
|
|
(1)
|
Represents the revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash.
|
(2)
|
Includes dividends on FHLB/FRB stock, correspondent bank rebate income and other fee income.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Client services
|
|
$
|
2,586
|
|
|
$
|
1,856
|
|
|
$
|
4,945
|
|
|
$
|
3,791
|
|
Tax credit fund amortization
|
|
2,502
|
|
|
1,338
|
|
|
4,530
|
|
|
2,655
|
|
||||
Data processing services
|
|
2,041
|
|
|
1,882
|
|
|
4,268
|
|
|
3,794
|
|
||||
Telephone
|
|
1,538
|
|
|
1,512
|
|
|
3,286
|
|
|
3,069
|
|
||||
Postage and supplies
|
|
716
|
|
|
680
|
|
|
1,485
|
|
|
1,218
|
|
||||
Dues and publications
|
|
636
|
|
|
445
|
|
|
1,133
|
|
|
903
|
|
||||
Other
|
|
3,108
|
|
|
1,975
|
|
|
4,670
|
|
|
4,193
|
|
||||
Total other noninterest expense
|
|
$
|
13,127
|
|
|
$
|
9,688
|
|
|
$
|
24,317
|
|
|
$
|
19,623
|
|
10.
|
Segment Reporting
|
•
|
Global Commercial Bank
is comprised of results from the following:
|
◦
|
Our
Commercial Bank
products and services are provided by the Bank to commercial clients in the technology, life science and clean technology (energy and resource innovation) industries. The Bank provides solutions to the financial needs of commercial clients, through credit, global treasury management, foreign exchange, global trade finance, and other services. It serves clients within the United States, as well as non-U.S. clients in key international entrepreneurial markets. In addition, the Bank and its subsidiaries offer a variety of investment services and solutions, including investment advisory and broker-dealer services.
|
◦
|
Our
Private Equity Division
provides banking products and services primarily to our venture capital and private equity clients.
|
◦
|
Our
Wine
practice provides banking products and services to our premium wine industry clients, and our
Community Development Finance
practice makes loans as part of our responsibilities under the Community Reinvestment Act. These practices are formerly known as SVB Specialty Lending.
|
◦
|
SVB Analytics
provides equity valuation services to companies and venture capital/private equity firms.
|
◦
|
Debt Fund Investments
is comprised of our investments in certain debt funds.
|
•
|
SVB Private Bank
is the private banking division of the Bank, which provides banking products and a range of personal financial solutions for consumers. Our clients are primarily venture capital/private equity professionals and executive leaders of the innovation companies they support. We offer a customized suite of private banking services, including mortgages, home equity lines of credit, restricted stock purchase loans, capital call lines of credit and other secured and unsecured lending, as well as cash and wealth management services.
|
•
|
SVB Capital
is the venture capital investment arm of SVBFG, which focuses primarily on funds management. SVB Capital manages funds (primarily venture capital funds) on behalf of third party limited partners and SVB Financial Group. The SVB Capital family of funds is comprised of funds of funds and direct venture funds. SVB Capital generates income for the Company primarily through management fees, carried interest arrangements and returns through the Company’s investments in the funds.
|
(Dollars in thousands)
|
|
Global
Commercial
Bank (1)
|
|
SVB Private
Bank
|
|
SVB Capital (1)
|
|
Other Items (2)
|
|
Total
|
||||||||||
Three months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
178,488
|
|
|
$
|
9,293
|
|
|
$
|
29
|
|
|
$
|
17,155
|
|
|
$
|
204,965
|
|
(Provision for) loan losses
|
|
(1,841
|
)
|
|
(106
|
)
|
|
—
|
|
|
—
|
|
|
(1,947
|
)
|
|||||
Noninterest income
|
|
53,021
|
|
|
356
|
|
|
(3,119
|
)
|
|
(36,048
|
)
|
|
14,210
|
|
|||||
Noninterest expense (3)
|
|
(123,679
|
)
|
|
(2,640
|
)
|
|
(3,144
|
)
|
|
(43,983
|
)
|
|
(173,446
|
)
|
|||||
Income (loss) before income tax expense (4)
|
|
$
|
105,989
|
|
|
$
|
6,903
|
|
|
$
|
(6,234
|
)
|
|
$
|
(62,876
|
)
|
|
$
|
43,782
|
|
Total average loans, net of unearned income
|
|
$
|
9,971,725
|
|
|
$
|
1,119,503
|
|
|
$
|
—
|
|
|
$
|
(10,626
|
)
|
|
$
|
11,080,602
|
|
Total average assets (5)
|
|
29,218,349
|
|
|
985,225
|
|
|
342,924
|
|
|
1,199,132
|
|
|
31,745,630
|
|
|||||
Total average deposits
|
|
26,324,070
|
|
|
791,261
|
|
|
—
|
|
|
61,794
|
|
|
27,177,125
|
|
|||||
Three months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
154,586
|
|
|
$
|
5,927
|
|
|
$
|
3
|
|
|
$
|
9,565
|
|
|
$
|
170,081
|
|
(Provision for) loan losses
|
|
(18,190
|
)
|
|
(382
|
)
|
|
—
|
|
|
—
|
|
|
(18,572
|
)
|
|||||
Noninterest income
|
|
48,361
|
|
|
253
|
|
|
7,281
|
|
|
42,344
|
|
|
98,239
|
|
|||||
Noninterest expense (3)
|
|
(101,246
|
)
|
|
(1,848
|
)
|
|
(2,757
|
)
|
|
(37,441
|
)
|
|
(143,292
|
)
|
|||||
Income before income tax expense (4)
|
|
$
|
83,511
|
|
|
$
|
3,950
|
|
|
$
|
4,527
|
|
|
$
|
14,468
|
|
|
$
|
106,456
|
|
Total average loans, net of unearned income
|
|
$
|
8,203,231
|
|
|
$
|
871,746
|
|
|
$
|
—
|
|
|
$
|
(52,804
|
)
|
|
$
|
9,022,173
|
|
Total average assets (5)
|
|
20,442,613
|
|
|
881,298
|
|
|
269,771
|
|
|
499,616
|
|
|
22,093,298
|
|
|||||
Total average deposits
|
|
18,137,218
|
|
|
472,613
|
|
|
—
|
|
|
4,339
|
|
|
18,614,170
|
|
|||||
Six months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
354,191
|
|
|
$
|
16,185
|
|
|
$
|
43
|
|
|
$
|
30,874
|
|
|
$
|
401,293
|
|
(Provision for) reduction of loan losses
|
|
(2,648
|
)
|
|
207
|
|
|
—
|
|
|
—
|
|
|
(2,441
|
)
|
|||||
Noninterest income
|
|
111,658
|
|
|
630
|
|
|
34,553
|
|
|
177,594
|
|
|
324,435
|
|
|||||
Noninterest expense (2)
|
|
(245,604
|
)
|
|
(5,135
|
)
|
|
(5,779
|
)
|
|
(89,364
|
)
|
|
(345,882
|
)
|
|||||
Income before income tax expense (3)
|
|
$
|
217,597
|
|
|
$
|
11,887
|
|
|
$
|
28,817
|
|
|
$
|
119,104
|
|
|
$
|
377,405
|
|
Total average loans, net of unearned income
|
|
$
|
9,867,841
|
|
|
$
|
1,084,894
|
|
|
$
|
—
|
|
|
$
|
(27,728
|
)
|
|
$
|
10,925,007
|
|
Total average assets (4)
|
|
27,405,141
|
|
|
974,853
|
|
|
342,451
|
|
|
1,045,176
|
|
|
29,767,621
|
|
|||||
Total average deposits
|
|
24,610,629
|
|
|
768,300
|
|
|
—
|
|
|
57,528
|
|
|
25,436,457
|
|
|||||
Six months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
303,522
|
|
|
$
|
12,031
|
|
|
$
|
4
|
|
|
$
|
17,693
|
|
|
$
|
333,250
|
|
(Provision for) reduction of loan losses
|
|
(24,397
|
)
|
|
12
|
|
|
—
|
|
|
—
|
|
|
(24,385
|
)
|
|||||
Noninterest income
|
|
94,902
|
|
|
487
|
|
|
12,722
|
|
|
68,732
|
|
|
176,843
|
|
|||||
Noninterest expense (2)
|
|
(205,585
|
)
|
|
(3,779
|
)
|
|
(5,143
|
)
|
|
(77,799
|
)
|
|
(292,306
|
)
|
|||||
Income before income tax expense (3)
|
|
$
|
168,442
|
|
|
$
|
8,751
|
|
|
$
|
7,583
|
|
|
$
|
8,626
|
|
|
$
|
193,402
|
|
Total average loans, net of unearned income
|
|
$
|
8,036,833
|
|
|
$
|
858,351
|
|
|
$
|
—
|
|
|
$
|
(42,696
|
)
|
|
$
|
8,852,488
|
|
Total average assets (4)
|
|
20,491,451
|
|
|
865,777
|
|
|
254,343
|
|
|
591,746
|
|
|
22,203,317
|
|
|||||
Total average deposits
|
|
18,219,590
|
|
|
471,648
|
|
|
—
|
|
|
8,130
|
|
|
18,699,368
|
|
|
(1)
|
Global Commercial Bank’s and SVB Capital’s components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. Noncontrolling interest is included within "Other Items" as discussed below.
|
(2)
|
The "Other Items" column reflects the adjustments necessary to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Noninterest income is primarily attributable to noncontrolling interests and gains on equity warrant assets. Noninterest expense primarily consists of expenses associated with corporate support functions such as finance, human resources, marketing, legal and other expenses. Additionally, average assets primarily consist of cash and cash equivalents.
|
(3)
|
The Global Commercial Bank segment includes direct depreciation and amortization of
$5.1 million
and
$4.6 million
for the three months ended
June 30, 2014
and
2013
, respectively and
$10.0 million
and
$9.1 million
for the six months ended June 30, 2014 and 2013, respectively.
|
(4)
|
The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates.
|
(5)
|
Total average assets equal the greater of total average assets or the sum of total liabilities and total stockholders’ equity for each segment.
|
11.
|
Off-Balance Sheet Arrangements, Guarantees and Other Commitments
|
(Dollars in thousands)
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
Loan commitments available for funding: (1)
|
|
|
|
|
||||
Fixed interest rate commitments
|
|
$
|
1,394,063
|
|
|
$
|
1,392,781
|
|
Variable interest rate commitments
|
|
11,070,302
|
|
|
9,101,973
|
|
||
Total loan commitments available for funding
|
|
12,464,365
|
|
|
10,494,754
|
|
||
Commercial and standby letters of credit (2)
|
|
1,105,617
|
|
|
975,968
|
|
||
Total unfunded credit commitments
|
|
$
|
13,569,982
|
|
|
$
|
11,470,722
|
|
Commitments unavailable for funding (3)
|
|
$
|
1,267,797
|
|
|
$
|
1,006,168
|
|
Maximum lending limits for accounts receivable factoring arrangements (4)
|
|
978,752
|
|
|
894,276
|
|
||
Reserve for unfunded credit commitments (5)
|
|
33,319
|
|
|
29,983
|
|
|
(1)
|
Represents commitments which are available for funding, due to clients meeting all collateral, compliance and financial covenants required under loan commitment agreements.
|
(2)
|
See below for additional information on our commercial and standby letters of credit.
|
(3)
|
Represents commitments which are currently unavailable for funding, due to clients failing to meet all collateral, compliance and financial covenants under loan commitment agreements.
|
(4)
|
We extend credit under accounts receivable factoring arrangements when our clients’ sales invoices are deemed creditworthy under existing underwriting practices.
|
(5)
|
Our reserve for unfunded credit commitments includes an allowance for both our unfunded loan commitments and our letters of credit.
|
(Dollars in thousands)
|
|
Expires In One
Year or Less
|
|
Expires After
One Year
|
|
Total Amount
Outstanding
|
|
Maximum Amount
of Future Payments
|
||||||||
Financial standby letters of credit
|
|
$
|
972,386
|
|
|
$
|
55,165
|
|
|
$
|
1,027,551
|
|
|
$
|
1,027,551
|
|
Performance standby letters of credit
|
|
58,678
|
|
|
8,343
|
|
|
67,021
|
|
|
67,021
|
|
||||
Commercial letters of credit
|
|
11,045
|
|
|
—
|
|
|
11,045
|
|
|
11,045
|
|
||||
Total
|
|
$
|
1,042,109
|
|
|
$
|
63,508
|
|
|
$
|
1,105,617
|
|
|
$
|
1,105,617
|
|
Our Ownership in Venture Capital/Private Equity Funds
(Dollars in thousands)
|
|
SVBFG Capital Commitments
|
|
SVBFG Unfunded
Commitments
|
|
SVBFG Ownership
of each Fund (4)
|
|||||
Silicon Valley BancVentures, LP
|
|
$
|
6,000
|
|
|
$
|
270
|
|
|
10.7
|
%
|
SVB Capital Partners II, LP (1)
|
|
1,200
|
|
|
162
|
|
|
5.1
|
|
||
Capital Partners III, LP
|
|
750
|
|
|
664
|
|
|
0.4
|
|
||
SVB Capital Shanghai Yangpu Venture Capital Fund
|
|
935
|
|
|
161
|
|
|
6.8
|
|
||
SVB Strategic Investors Fund, LP
|
|
15,300
|
|
|
688
|
|
|
12.6
|
|
||
SVB Strategic Investors Fund II, LP
|
|
15,000
|
|
|
1,050
|
|
|
8.6
|
|
||
SVB Strategic Investors Fund III, LP
|
|
15,000
|
|
|
1,538
|
|
|
5.9
|
|
||
SVB Strategic Investors Fund IV, LP
|
|
12,239
|
|
|
2,693
|
|
|
5.0
|
|
||
Strategic Investors Fund V Funds
|
|
515
|
|
|
265
|
|
|
Various
|
|
||
Strategic Investors Fund VI Funds
|
|
500
|
|
|
442
|
|
|
0.2
|
|
||
SVB Capital Preferred Return Fund, LP
|
|
12,688
|
|
|
—
|
|
|
20.0
|
|
||
SVB Capital—NT Growth Partners, LP
|
|
24,670
|
|
|
1,340
|
|
|
33.0
|
|
||
Other private equity fund (2)
|
|
9,338
|
|
|
—
|
|
|
58.2
|
|
||
Partners for Growth, LP
|
|
25,000
|
|
|
9,750
|
|
|
50.0
|
|
||
Debt funds (equity method accounting)
|
|
65,379
|
|
|
4,950
|
|
|
Various
|
|
||
Other fund investments (3)
|
|
301,596
|
|
|
29,587
|
|
|
Various
|
|
||
Total
|
|
$
|
506,110
|
|
|
$
|
53,560
|
|
|
|
|
(1)
|
Our ownership includes direct ownership of
1.3 percent
and indirect ownership interest of
3.8 percent
through our investment in SVB Strategic Investors Fund II, LP.
|
(2)
|
Our ownership includes direct ownership of
41.5 percent
and indirect ownership interests of
12.6 percent
and
4.1 percent
in the fund through our ownership interest of SVB Capital - NT Growth Partners, LP and SVB Capital Preferred Return Fund, LP, respectively.
|
(3)
|
Represents commitments to
287
funds (primarily venture capital funds) where our ownership interest is generally less than
5 percent
of the voting interests of each such fund.
|
(4)
|
We are subject to the Volcker Rule, which restricts or limits our sponsorship of and ownership of interests in “covered” funds including venture capital and private equity funds. For funds that we sponsor, the Volcker Rule limits the amount of our investment to 3% of the fund, and our aggregate investments in all such funds must not exceed 3% of our Tier 1 capital. The current deadline to conform to these limits is July 21, 2015. The time period to divest an investment that is not permitted by the final rule may be extended by the Federal Reserve Board for up to two one-year general extensions, and one additional extension up to five additional years for investments in funds that are considered illiquid. We intend to seek the maximum extensions available to us. However, there is no guarantee that the Federal Reserve Board will grant any of these extensions. See “Business - Supervision and Regulation” under Item 1 of Part I of our 2013 Form 10-K.
|
Limited Partnership
(Dollars in thousands)
|
|
Unfunded
Commitments
|
||
SVB Strategic Investors Fund, LP
|
|
$
|
2,250
|
|
SVB Strategic Investors Fund II, LP
|
|
5,770
|
|
|
SVB Strategic Investors Fund III, LP
|
|
17,249
|
|
|
SVB Strategic Investors Fund IV, LP
|
|
45,277
|
|
|
Strategic Investors Fund V Funds
|
|
181,221
|
|
|
Strategic Investors Fund VI Funds
|
|
237,682
|
|
|
SVB Capital Preferred Return Fund, LP
|
|
7,884
|
|
|
SVB Capital—NT Growth Partners, LP
|
|
8,587
|
|
|
Other private equity fund
|
|
243
|
|
|
Total
|
|
$
|
506,163
|
|
12.
|
Income Taxes
|
13.
|
Fair Value of Financial Instruments
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at June 30, 2014
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
|
$
|
4,882,172
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,882,172
|
|
U.S. agency debentures
|
|
—
|
|
|
3,745,873
|
|
|
—
|
|
|
3,745,873
|
|
||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
—
|
|
|
2,142,829
|
|
|
—
|
|
|
2,142,829
|
|
||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
—
|
|
|
890,912
|
|
|
—
|
|
|
890,912
|
|
||||
Equity securities
|
|
2,489
|
|
|
8,515
|
|
|
—
|
|
|
11,004
|
|
||||
Total available-for-sale securities
|
|
4,884,661
|
|
|
6,788,129
|
|
|
—
|
|
|
11,672,790
|
|
||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Non-marketable securities:
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
—
|
|
|
—
|
|
|
1,040,522
|
|
|
1,040,522
|
|
||||
Other venture capital investments
|
|
—
|
|
|
—
|
|
|
43,747
|
|
|
43,747
|
|
||||
Other securities
|
|
275,831
|
|
|
—
|
|
|
5,808
|
|
|
281,639
|
|
||||
Total non-marketable and other securities (fair value accounting)
|
|
275,831
|
|
|
—
|
|
|
1,090,077
|
|
|
1,365,908
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
5,692
|
|
|
—
|
|
|
5,692
|
|
||||
Foreign exchange forward and option contracts
|
|
—
|
|
|
11,090
|
|
|
—
|
|
|
11,090
|
|
||||
Equity warrant assets
|
|
—
|
|
|
1,754
|
|
|
87,151
|
|
|
88,905
|
|
||||
Loan conversion options
|
|
—
|
|
|
53
|
|
|
—
|
|
|
53
|
|
||||
Client interest rate derivatives
|
|
—
|
|
|
2,239
|
|
|
—
|
|
|
2,239
|
|
||||
Total assets (1)
|
|
$
|
5,160,492
|
|
|
$
|
6,808,957
|
|
|
$
|
1,177,228
|
|
|
$
|
13,146,677
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward and option contracts
|
|
$
|
—
|
|
|
$
|
10,744
|
|
|
$
|
—
|
|
|
$
|
10,744
|
|
Client interest rate derivatives
|
|
—
|
|
|
2,420
|
|
|
—
|
|
|
2,420
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
13,164
|
|
|
$
|
—
|
|
|
$
|
13,164
|
|
|
(1)
|
Included in Level 1 and Level 3 assets are
$255.9 million
and
$1.0 billion
, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at December 31, 2013
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency debentures
|
|
$
|
—
|
|
|
$
|
4,345,232
|
|
|
$
|
—
|
|
|
$
|
4,345,232
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Agency-issued mortgage-backed securities
|
|
—
|
|
|
2,473,576
|
|
|
—
|
|
|
2,473,576
|
|
||||
Agency-issued collateralized mortgage obligations - fixed rate
|
|
—
|
|
|
3,325,758
|
|
|
—
|
|
|
3,325,758
|
|
||||
Agency-issued collateralized mortgage obligations - variable rate
|
|
—
|
|
|
1,186,573
|
|
|
—
|
|
|
1,186,573
|
|
||||
Agency-issued commercial mortgage-backed securities
|
|
—
|
|
|
564,604
|
|
|
—
|
|
|
564,604
|
|
||||
Municipal bonds and notes
|
|
—
|
|
|
86,027
|
|
|
—
|
|
|
86,027
|
|
||||
Equity securities
|
|
3,732
|
|
|
1,319
|
|
|
—
|
|
|
5,051
|
|
||||
Total available-for-sale securities
|
|
3,732
|
|
|
11,983,089
|
|
|
—
|
|
|
11,986,821
|
|
||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Non-marketable securities:
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
—
|
|
|
—
|
|
|
862,972
|
|
|
862,972
|
|
||||
Other venture capital investments
|
|
—
|
|
|
—
|
|
|
32,839
|
|
|
32,839
|
|
||||
Other Securities
|
|
2,125
|
|
|
—
|
|
|
319,249
|
|
|
321,374
|
|
||||
Total non-marketable and other securities (fair value accounting)
|
|
2,125
|
|
|
—
|
|
|
1,215,060
|
|
|
1,217,185
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
6,492
|
|
|
—
|
|
|
6,492
|
|
||||
Foreign exchange forward and option contracts
|
|
—
|
|
|
15,530
|
|
|
—
|
|
|
15,530
|
|
||||
Equity warrant assets
|
|
—
|
|
|
3,622
|
|
|
99,891
|
|
|
103,513
|
|
||||
Loan conversion options
|
|
—
|
|
|
314
|
|
|
—
|
|
|
314
|
|
||||
Client interest rate derivatives
|
|
—
|
|
|
1,265
|
|
|
—
|
|
|
1,265
|
|
||||
Total assets (1)
|
|
$
|
5,857
|
|
|
$
|
12,010,312
|
|
|
$
|
1,314,951
|
|
|
$
|
13,331,120
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward and option contracts
|
|
$
|
—
|
|
|
$
|
12,617
|
|
|
$
|
—
|
|
|
$
|
12,617
|
|
Client interest rate derivatives
|
|
—
|
|
|
1,396
|
|
|
—
|
|
|
1,396
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
14,013
|
|
|
$
|
—
|
|
|
$
|
14,013
|
|
|
(1)
|
Included in Level 1 and Level 3 assets are
$2.0 million
and
$1.1 billion
, respectively, attributable to noncontrolling interests calculated based on the ownership percentages of the noncontrolling interests.
|
(Dollars in thousands)
|
|
Beginning
Balance
|
|
Total Realized and Unrealized Gains (Losses) Included in Income
|
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Distributions and Other Settlements
|
|
Transfers Into Level 3
|
|
Transfers Out of Level 3
|
|
Ending
Balance
|
||||||||||||||||||
Three months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Venture capital and private equity fund investments
|
|
$
|
976,922
|
|
|
$
|
37,445
|
|
|
$
|
65,956
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(39,801
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,040,522
|
|
Other venture capital investments
|
|
28,306
|
|
|
676
|
|
|
15,826
|
|
|
(925
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(126
|
)
|
|
43,747
|
|
|||||||||
Other securities (fair value accounting)
|
|
362,487
|
|
|
1,616
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(358,295
|
)
|
|
5,808
|
|
|||||||||
Total non-marketable and other securities (fair value accounting)(1)
|
|
1,367,715
|
|
|
39,737
|
|
|
81,782
|
|
|
(925
|
)
|
|
—
|
|
|
(39,811
|
)
|
|
—
|
|
|
(358,421
|
)
|
|
1,090,077
|
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity warrant assets (2)
|
|
87,642
|
|
|
13,141
|
|
|
—
|
|
|
(16,644
|
)
|
|
2,749
|
|
|
583
|
|
|
—
|
|
|
(320
|
)
|
|
87,151
|
|
|||||||||
Total assets
|
|
$
|
1,455,357
|
|
|
$
|
52,878
|
|
|
$
|
81,782
|
|
|
$
|
(17,569
|
)
|
|
$
|
2,749
|
|
|
$
|
(39,228
|
)
|
|
$
|
—
|
|
|
$
|
(358,741
|
)
|
|
$
|
1,177,228
|
|
Three months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Venture capital and private equity fund investments
|
|
$
|
701,076
|
|
|
$
|
33,728
|
|
|
$
|
35,574
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(28,856
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
741,522
|
|
Other venture capital investments
|
|
124,786
|
|
|
(939
|
)
|
|
28
|
|
|
(364
|
)
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
123,493
|
|
|||||||||
Total non-marketable and other securities (fair value accounting) (1)
|
|
825,862
|
|
|
32,789
|
|
|
35,602
|
|
|
(364
|
)
|
|
—
|
|
|
(28,874
|
)
|
|
—
|
|
|
—
|
|
|
865,015
|
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity warrant assets (2)
|
|
66,046
|
|
|
6,468
|
|
|
—
|
|
|
(2,189
|
)
|
|
2,388
|
|
|
1,014
|
|
|
—
|
|
|
(498
|
)
|
|
73,229
|
|
|||||||||
Total assets
|
|
$
|
891,908
|
|
|
$
|
39,257
|
|
|
$
|
35,602
|
|
|
$
|
(2,553
|
)
|
|
$
|
2,388
|
|
|
$
|
(27,860
|
)
|
|
$
|
—
|
|
|
$
|
(498
|
)
|
|
$
|
938,244
|
|
Six months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Venture capital and private equity fund investments
|
|
$
|
862,972
|
|
|
$
|
148,780
|
|
|
$
|
110,411
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(81,641
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,040,522
|
|
Other venture capital investments
|
|
32,839
|
|
|
2,514
|
|
|
16,496
|
|
|
(4,439
|
)
|
|
—
|
|
|
(3,537
|
)
|
|
—
|
|
|
(126
|
)
|
|
43,747
|
|
|||||||||
Other securities (fair value accounting)
|
|
319,249
|
|
|
104,310
|
|
|
—
|
|
|
(46,840
|
)
|
|
—
|
|
|
3,417
|
|
|
—
|
|
|
(374,328
|
)
|
|
5,808
|
|
|||||||||
Total non-marketable and other securities (fair value accounting) (1)
|
|
1,215,060
|
|
|
255,604
|
|
|
126,907
|
|
|
(51,279
|
)
|
|
—
|
|
|
(81,761
|
)
|
|
—
|
|
|
(374,454
|
)
|
|
1,090,077
|
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity warrant assets (2)
|
|
99,891
|
|
|
37,519
|
|
|
—
|
|
|
(56,637
|
)
|
|
6,166
|
|
|
1,209
|
|
|
—
|
|
|
(997
|
)
|
|
87,151
|
|
|||||||||
Total assets
|
|
$
|
1,314,951
|
|
|
$
|
293,123
|
|
|
$
|
126,907
|
|
|
$
|
(107,916
|
)
|
|
$
|
6,166
|
|
|
$
|
(80,552
|
)
|
|
$
|
—
|
|
|
$
|
(375,451
|
)
|
|
$
|
1,177,228
|
|
Six months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Venture capital and private equity fund investments
|
|
$
|
665,921
|
|
|
$
|
56,238
|
|
|
$
|
65,318
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(45,955
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
741,522
|
|
Other venture capital investments
|
|
127,091
|
|
|
1,249
|
|
|
194
|
|
|
(385
|
)
|
|
—
|
|
|
(1,095
|
)
|
|
—
|
|
|
(3,561
|
)
|
|
123,493
|
|
|||||||||
Total non-marketable and other securities (fair value accounting) (1)
|
|
793,012
|
|
|
57,487
|
|
|
65,512
|
|
|
(385
|
)
|
|
—
|
|
|
(47,050
|
)
|
|
—
|
|
|
(3,561
|
)
|
|
865,015
|
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity warrant assets (2)
|
|
66,129
|
|
|
7,927
|
|
|
—
|
|
|
(4,439
|
)
|
|
4,314
|
|
|
1,378
|
|
|
—
|
|
|
(2,080
|
)
|
|
73,229
|
|
|||||||||
Total assets
|
|
$
|
859,141
|
|
|
$
|
65,414
|
|
|
$
|
65,512
|
|
|
$
|
(4,824
|
)
|
|
$
|
4,314
|
|
|
$
|
(45,672
|
)
|
|
$
|
—
|
|
|
$
|
(5,641
|
)
|
|
$
|
938,244
|
|
|
(1)
|
Realized and unrealized gains (losses) are recorded in the line items “gains on investment securities, net”, and “other noninterest income”, components of noninterest income.
|
(2)
|
Realized and unrealized gains (losses) are recorded in the line item “gains on derivative instruments, net”, a component of noninterest income.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
$
|
38,061
|
|
|
$
|
34,390
|
|
|
$
|
149,917
|
|
|
$
|
57,011
|
|
Other venture capital investments
|
|
1,324
|
|
|
(209
|
)
|
|
1,310
|
|
|
1,117
|
|
||||
Other securities (fair value accounting)
|
|
1,615
|
|
|
—
|
|
|
80,583
|
|
|
—
|
|
||||
Total non-marketable and other securities (fair value accounting) (1)
|
|
41,000
|
|
|
34,181
|
|
|
231,810
|
|
|
58,128
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Equity warrant assets (2)
|
|
9,578
|
|
|
5,240
|
|
|
11,971
|
|
|
6,279
|
|
||||
Total unrealized gains, net
|
|
$
|
50,578
|
|
|
$
|
39,421
|
|
|
$
|
243,781
|
|
|
$
|
64,407
|
|
Unrealized gains attributable to noncontrolling interests
|
|
$
|
38,791
|
|
|
$
|
28,482
|
|
|
$
|
148,151
|
|
|
$
|
50,245
|
|
|
(1)
|
Unrealized gains (losses) are recorded in the line items “gains on investment securities, net”, and “other noninterest income”, components of noninterest income.
|
(2)
|
Unrealized gains (losses) are recorded in the line item “gains on derivative instruments, net”, a component of noninterest income.
|
(Dollars in thousands)
|
|
Fair value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Weighted
Average
|
|||
June 30, 2014:
|
|
|
|
|
|
|
|
|
|||
Other venture capital investments (fair value accounting)
|
|
$
|
43,747
|
|
|
Private company equity pricing
|
|
(1)
|
|
(1
|
)
|
Other securities
|
|
5,808
|
|
|
Modified stock price
|
|
Sales restrictions discount (2)
|
|
10.0
|
%
|
|
Equity warrant assets (public portfolio)
|
|
671
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
43.3
|
%
|
|
|
|
|
|
Risk-Free interest rate
|
|
1.8
|
%
|
||||
|
|
|
|
Sales restrictions discount (2)
|
|
14.8
|
%
|
||||
Equity warrant assets (private portfolio)
|
|
86,480
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
38.9
|
%
|
|
|
|
|
|
|
Risk-Free interest rate
|
|
0.8
|
%
|
|||
|
|
|
|
|
Marketability discount (3)
|
|
20.0
|
%
|
|||
|
|
|
|
|
Remaining life assumption (4)
|
|
45.0
|
%
|
|||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|||
Other venture capital investments (fair value accounting)
|
|
$
|
32,839
|
|
|
Private company equity pricing
|
|
(1)
|
|
(1
|
)
|
Other securities
|
|
319,249
|
|
|
Modified stock price
|
|
Sales restrictions discount (2)
|
|
12.0
|
%
|
|
Equity warrant assets (public portfolio)
|
|
24,217
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
41.3
|
%
|
|
|
|
|
|
Risk-Free interest rate
|
|
1.7
|
%
|
||||
|
|
|
|
Sales restrictions discount (2)
|
|
13.7
|
%
|
||||
Equity warrant assets (private portfolio)
|
|
75,674
|
|
|
Modified Black-Scholes option pricing model
|
|
Volatility
|
|
40.1
|
%
|
|
|
|
|
|
Risk-Free interest rate
|
|
0.8
|
%
|
||||
|
|
|
|
Marketability discount (3)
|
|
22.5
|
%
|
||||
|
|
|
|
Remaining life assumption (4)
|
|
45.0
|
%
|
|
(1)
|
In determining the fair value of our other venture capital investment portfolio, we evaluate a variety of factors related to each underlying private portfolio company including, but not limited to, actual and forecasted results, cash position, recent or planned transactions and market comparable companies. Additionally, we have ongoing communication with the
|
(2)
|
We adjust quoted market prices of public companies, which are subject to certain sales restrictions. Sales restriction discounts generally range from
10
percent to
20
percent depending on the duration of the sales restrictions, which typically range from 3 to 6 months.
|
(3)
|
Our marketability discount is applied to all private company warrants to account for a general lack of liquidity due to the private nature of the associated underlying company. The quantitative measure used is based on long-run averages and is influenced over time by various factors, including market conditions. On a quarterly basis, a sensitivity analysis is performed on our marketability discount.
|
(4)
|
We adjust the contractual remaining term of private company warrants based on our estimate of the actual remaining life, which we determine by utilizing historical data on cancellations and exercises. At
June 30, 2014
, the weighted average contractual remaining term was
6.2
years, compared to our estimated remaining life of
2.8
years. On a quarterly basis, a sensitivity analysis is performed on our remaining life assumption.
|
|
|
|
|
Estimated Fair Value
|
||||||||||||
(Dollars in thousands)
|
|
Carrying Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
June 30, 2014:
|
|
|
|
|
|
|
|
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
2,649,831
|
|
|
$
|
2,649,831
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Held-to-maturity securities
|
|
5,463,920
|
|
|
—
|
|
|
5,454,996
|
|
|
—
|
|
||||
Non-marketable and other securities (cost and equity method accounting)
|
|
391,327
|
|
|
—
|
|
|
—
|
|
|
480,736
|
|
||||
Net commercial loans
|
|
10,127,781
|
|
|
—
|
|
|
—
|
|
|
10,319,273
|
|
||||
Net consumer loans
|
|
1,100,202
|
|
|
—
|
|
|
—
|
|
|
1,039,405
|
|
||||
FHLB and Federal Reserve Bank stock
|
|
41,026
|
|
|
—
|
|
|
—
|
|
|
41,026
|
|
||||
Accrued interest receivable
|
|
79,135
|
|
|
—
|
|
|
79,135
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Other short-term borrowings
|
|
4,910
|
|
|
4,910
|
|
|
—
|
|
|
—
|
|
||||
Non-maturity deposits (1)
|
|
28,196,740
|
|
|
28,196,740
|
|
|
—
|
|
|
—
|
|
||||
Time deposits
|
|
155,807
|
|
|
—
|
|
|
155,812
|
|
|
—
|
|
||||
5.375% Senior Notes
|
|
348,321
|
|
|
—
|
|
|
396,452
|
|
|
—
|
|
||||
6.05% Subordinated Notes (2)
|
|
51,208
|
|
|
—
|
|
|
55,806
|
|
|
—
|
|
||||
7.0% Junior Subordinated Debentures
|
|
54,933
|
|
|
—
|
|
|
54,289
|
|
|
—
|
|
||||
Accrued interest payable
|
|
6,895
|
|
|
—
|
|
|
6,895
|
|
|
—
|
|
||||
Off-balance sheet financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Commitments to extend credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,698
|
|
||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
1,538,779
|
|
|
$
|
1,538,779
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-marketable and other securities (cost and equity method accounting)
|
|
378,309
|
|
|
—
|
|
|
—
|
|
|
447,783
|
|
||||
Net commercial loans
|
|
9,796,878
|
|
|
—
|
|
|
—
|
|
|
9,935,917
|
|
||||
Net consumer loans
|
|
966,622
|
|
|
—
|
|
|
—
|
|
|
1,005,080
|
|
||||
FHLB and Federal Reserve Bank stock
|
|
40,632
|
|
|
—
|
|
|
—
|
|
|
40,632
|
|
||||
Accrued interest receivable
|
|
67,772
|
|
|
—
|
|
|
67,772
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Other short-term borrowings
|
|
5,080
|
|
|
5,080
|
|
|
—
|
|
|
—
|
|
||||
Non-maturity deposits (1)
|
|
22,259,119
|
|
|
22,259,119
|
|
|
—
|
|
|
—
|
|
||||
Time deposits
|
|
213,860
|
|
|
—
|
|
|
213,874
|
|
|
—
|
|
||||
5.375% Senior Notes
|
|
348,209
|
|
|
—
|
|
|
383,782
|
|
|
—
|
|
||||
6.05% Subordinated Notes (2)
|
|
51,987
|
|
|
—
|
|
|
56,297
|
|
|
—
|
|
||||
7.0% Junior Subordinated Debentures
|
|
55,020
|
|
|
—
|
|
|
51,915
|
|
|
—
|
|
||||
Accrued interest payable
|
|
6,858
|
|
|
—
|
|
|
6,858
|
|
|
—
|
|
||||
Off-balance sheet financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Commitments to extend credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,285
|
|
|
(1)
|
Includes noninterest-bearing demand deposits, interest-bearing checking accounts, money market accounts and interest-bearing sweep deposits.
|
(2)
|
At
June 30, 2014
and
December 31, 2013
, included in the carrying value and estimated fair value of our
6.05%
Subordinated Notes was an interest rate swap valued at
$5.7 million
and
$6.5 million
, respectively, related to hedge accounting associated with the notes.
|
(Dollars in thousands)
|
|
Carrying Amount
|
|
Fair Value
|
|
Unfunded
Commitments
|
||||||
Non-marketable and other securities (fair value accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (1)
|
|
$
|
1,040,522
|
|
|
$
|
1,040,522
|
|
|
$
|
506,163
|
|
Non-marketable and other securities (equity method accounting):
|
|
|
|
|
|
|
||||||
Other investments (2)
|
|
47,706
|
|
|
49,220
|
|
|
5,836
|
|
|||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
||||||
Venture capital and private equity fund investments (3)
|
|
142,136
|
|
|
230,236
|
|
|
28,100
|
|
|||
Total
|
|
$
|
1,230,364
|
|
|
$
|
1,319,978
|
|
|
$
|
540,099
|
|
|
(1)
|
Venture capital and private equity fund investments within non-marketable securities (fair value accounting) include investments made by our managed funds of funds and one of our direct venture funds. These investments represent investments in venture capital and private equity funds that invest primarily in U.S. and global technology and life sciences companies. Included in the fair value and unfunded commitments of fund investments under fair value accounting are
$962 million
and
$501 million
, respectively, attributable to noncontrolling interests. It is estimated that we will receive distributions from the fund investments over the next
10
to
13
years, depending on the age of the funds and any potential extensions of terms of the funds.
|
(2)
|
Other investments within non-marketable securities (equity method accounting) include investments in debt funds and venture capital and private equity fund investments that invest in or lend money to primarily U.S. and global technology and life sciences companies. It is estimated that we will receive distributions from the fund investments over the next
5
to
7
years, depending on the age of the funds.
|
(3)
|
Venture capital and private equity fund investments within non-marketable securities (cost method accounting) include investments in venture capital and private equity fund investments that invest primarily in U.S. and global technology and life sciences companies. It is estimated that we will receive distributions from the fund investments over the next
5
to
7
years, depending on the age of the funds and any potential extensions of the terms of the funds.
|
14.
|
Legal Matters
|
15.
|
Related Parties
|
16.
|
Subsequent Events
|
Non-GAAP losses on investments securities, net of noncontrolling interests (Dollars in millions)
|
|
Through August 6, 2014
|
||
GAAP losses on certain non-marketable and other securities
|
|
$
|
48
|
|
Less: losses attributable to noncontrolling interests, including carried interest
|
|
39
|
|
|
Non-GAAP losses on certain non-marketable and other securities, net of noncontrolling interests
|
|
$
|
9
|
|
▪
|
Projections of our net interest income, noninterest income, earnings per share, noninterest expenses (including professional services, compliance, compensation and other costs), cash flows, balance sheet positions, capital expenditures, liquidity and capitalization or other financial items
|
▪
|
Descriptions of our strategic initiatives, plans or objectives for future operations, including pending sales or acquisitions
|
▪
|
Forecasts of venture capital/private equity funding and investment levels
|
▪
|
Forecasts of future interest rates, economic performance, and income from investments
|
▪
|
Forecasts of expected levels of provisions for loan losses, loan growth and client funds
|
▪
|
Descriptions of assumptions underlying or relating to any of the foregoing
|
•
|
Market and economic conditions (including interest rate environment, and levels of public offerings, mergers/acquisitions and venture capital financing activities) and the associated impact on us
|
•
|
The sufficiency of our capital, including sources of capital (such as funds generated through retained earnings), the extent to which capital may be used or required, and our capital category classification
|
•
|
The adequacy of our liquidity position, including sources of liquidity (such as funds generated through retained earnings)
|
•
|
Our overall investment plans, strategies and activities, including venture capital/private equity funding and investments, and our investment of excess cash/liquidity
|
•
|
The realization, timing, valuation and performance of equity or other investments, including the impact of changes in our valuation of our investments, such as FireEye.
|
•
|
The likelihood that the market value of our temporarily impaired investments will recover
|
•
|
Our intent to sell our available-for-sale securities prior to recovery of our cost basis, or the likelihood of such
|
•
|
Our ability and intent to hold our held-to-maturity securities until maturity
|
•
|
The impact on our interest income from mortgage prepayment levels as it relates to our premium amortization expense, and from changes in loan yields due to shifts in loan mix
|
•
|
Expected cash requirements for unfunded commitments to certain investments, including capital calls
|
•
|
Our overall management of interest rate risk, including managing the sensitivity of our interest-earning assets and interest-bearing liabilities to interest rates, and the impact to earnings from a change in interest rates
|
•
|
The credit quality of our loan portfolio, including levels and trends of nonperforming loans, impaired loans, criticized loans and troubled debt restructurings
|
•
|
The adequacy of reserves (including allowance for loan and lease losses) and the appropriateness of our methodology for calculating such reserves
|
•
|
The level of loan and deposit and client investment fund balances
|
•
|
The level of client investment fees and associated margins
|
•
|
The profitability of our products and services, including loan yields, loan pricing, and interest margins
|
•
|
Our strategic initiatives, including the expansion of operations and business activities in China, Hong Kong, India, Israel, the UK and elsewhere domestically or internationally
|
•
|
The expansion and growth of our noninterest income sources
|
•
|
Distributions of venture capital, private equity or debt fund investment proceeds; intentions to sell such fund investments
|
•
|
The changes in, or adequacy of, our unrecognized tax benefits and any associated impact
|
•
|
The realization of certain deferred tax assets, and of any benefit stemming from certain net operating loss carryforwards.
|
•
|
The extent to which counterparties, including those to our forward and option contracts, will perform their contractual obligations
|
•
|
The condition and suitability of our properties
|
•
|
The manner in which we compete
|
•
|
The effect of application of accounting pronouncements and regulatory requirements
|
•
|
The effect of lawsuits and claims
|
•
|
Regulatory developments, including the nature and timing of the adoption and effectiveness of requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), new capital requirements and other applicable Federal, State and International laws and regulations, and any related impact on us
|
•
|
The expected impact of the "Volcker Rule" under the Dodd-Frank Act, including our intention to seek the maximum extensions to the conformance period applicable to us
|
▪
|
Continued strong growth in our lending business with record high average loan balances of $11.1 billion, an increase of $2.1 billion, or 22.8 percent.
|
▪
|
Average investment securities, excluding non-marketable and other securities, of $15.2 billion, an increase of $4.8 billion, or 45.7 percent. Period-end investment securities, excluding non-marketable and other securities, of $17.1 billion, an increase of $7.1 billion, or 70.6 percent.
|
▪
|
Average deposit balances of $27.2 billion, an increase of $8.6 billion, or 46.0 percent. Period-end deposit balances were $28.4 billion, an increase of $9.7 billion, or 51.7 percent.
|
▪
|
Average total client funds (including on-balance sheet deposits and off-balance sheet client investment funds) were $57.3 billion, an increase of $15.5 billion, or 37.1 percent. Period-end total client funds were $58.7 billion, an increase of $16.0 billion, or 37.6 percent.
|
▪
|
Net interest income (fully taxable equivalent basis) of $205.4 million, an increase of $34.9 million, or 20.5 percent, primarily due to an increase in interest income from loans and fixed income investment securities, attributable to growth in average loan and investment balances of $2.1 billion and $4.8 billion, respectively, driven by the strong average deposit growth mentioned above. This increase was partially offset by a decrease in the overall yield of our loan portfolio primarily resulting from the growth in our venture capital and private equity loan portfolio which, on average, have lower yields. The overall low market rate environment and increased price competition also impacted interest income.
|
▪
|
Net interest margin of 2.79 percent, compared to 3.40 percent, primarily reflective of a 51 basis point decrease in the overall yield of our loan portfolio. This decrease was primarily attributable to the change in mix of our interest earning assets. Loans represented 38 percent of earning assets in the second quarter of 2014 compared to 45 percent in the second quarter of 2013.
|
▪
|
Provision for loan losses of $1.9 million, compared to $18.6 million. The provision of
$1.9 million
was primarily driven by $5.3 million from period-end loan growth and
$4.8 million
in net charge-offs, offset by a reserve release of $6.0 million due to the improvement of the credit quality of our overall loan portfolio and a
$2.1 million
decrease in the reserve for impaired loans resulting from a decrease in impaired loan balances from repayments and charge-offs.
|
▪
|
Foreign exchange, credit card and lending related fees of $34.1 million, an increase of $8.2 million, or 31.6 percent reflective of increased client activity and transaction volumes.
|
▪
|
Net losses on investment securities of $57.3 million, compared to net gains of $40.6 million. Non-GAAP net losses on investment securities, net of noncontrolling interests of $22.1 million, compared to net gains of $9.5 million (See non-GAAP reconciliation under the section "Results of Operations—Noninterest Income—Gains on Investment Securities, Net") , primarily resulting from our FireEye related investments. Specifically, we had losses on investment securities related to FireEye of $98.9 million ($30.4 million net of noncontrolling interests). See "Results of Operations—Noninterest Income—Gains on Investment Securities, Net" for details about our FireEye related investments during the three and six months ended June 30, 2014.
|
▪
|
Net gains on equity warrant assets of
$12.3 million
, an increase of
$5.1 million
, or 71.5 percent, compared to
$7.2 million
. This increase was primarily driven by the increase in the number of equity warrant assets held as well as gains due to increases in valuations across the equity warrant asset portfolio.
|
▪
|
Noninterest expense of $173.4 million, an increase of $30.2 million, or 21.0 percent. The increase was primarily due to increases in incentive compensation and ESOP and other employee benefits as a result of our strong financial performance and an increase in average FTEs. Average FTEs increased by 6.7 percent to 1,768 for the three months ended June 30, 2014, compared to 1,657 FTEs for the comparable 2013 period.
|
▪
|
The issuance and sale through a registered public offering of 4,485,000 shares of common stock at an offering price of $101.00 per share, which resulted in net proceeds of $434.9 million to support the continued growth of our balance sheet.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||
(Dollars in thousands, except per share data and ratios)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||||
Income Statement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share
|
|
$
|
1.04
|
|
|
$
|
1.06
|
|
|
(1.9
|
)
|
%
|
|
$
|
2.96
|
|
|
$
|
1.96
|
|
|
51.0
|
|
%
|
Net income available to common stockholders
|
|
50,797
|
|
|
48,584
|
|
|
4.6
|
|
|
|
142,098
|
|
|
89,475
|
|
|
58.8
|
|
|
||||
Net interest income
|
|
204,965
|
|
|
170,081
|
|
|
20.5
|
|
|
|
401,293
|
|
|
333,250
|
|
|
20.4
|
|
|
||||
Net interest margin
|
|
2.79
|
%
|
|
3.40
|
%
|
|
(61
|
)
|
bps
|
|
2.95
|
%
|
|
3.32
|
%
|
|
(37
|
)
|
bps
|
||||
Provision for loan losses
|
|
$
|
1,947
|
|
|
$
|
18,572
|
|
|
(89.5
|
)
|
%
|
|
$
|
2,441
|
|
|
$
|
24,385
|
|
|
(90.0
|
)
|
%
|
Noninterest income
|
|
14,210
|
|
|
98,239
|
|
|
(85.5
|
)
|
|
|
324,435
|
|
|
176,843
|
|
|
83.5
|
|
|
||||
Noninterest expense
|
|
173,446
|
|
|
143,292
|
|
|
21.0
|
|
|
|
345,882
|
|
|
292,306
|
|
|
18.3
|
|
|
||||
Non-GAAP core fee income (1)
|
|
49,993
|
|
|
41,957
|
|
|
19.2
|
|
|
|
100,939
|
|
|
83,278
|
|
|
21.2
|
|
|
||||
Non-GAAP noninterest income, net of noncontrolling interests (1)
|
|
49,535
|
|
|
67,488
|
|
|
(26.6
|
)
|
|
|
173,042
|
|
|
123,602
|
|
|
40.0
|
|
|
||||
Non-GAAP noninterest expense, net of noncontrolling interests (2)
|
|
168,179
|
|
|
140,425
|
|
|
19.8
|
|
|
|
337,294
|
|
|
286,579
|
|
|
17.7
|
|
|
||||
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average loans, net of unearned income
|
|
$
|
11,080,602
|
|
|
$
|
9,022,173
|
|
|
22.8
|
|
%
|
|
$
|
10,925,007
|
|
|
$
|
8,852,488
|
|
|
23.4
|
|
%
|
Average noninterest-bearing demand deposits
|
|
19,472,542
|
|
|
13,257,481
|
|
|
46.9
|
|
|
|
18,183,692
|
|
|
13,321,635
|
|
|
36.5
|
|
|
||||
Average interest-bearing deposits
|
|
7,704,583
|
|
|
5,356,689
|
|
|
43.8
|
|
|
|
7,252,765
|
|
|
5,377,733
|
|
|
34.9
|
|
|
||||
Average total deposits
|
|
27,177,125
|
|
|
18,614,170
|
|
|
46.0
|
|
|
|
25,436,457
|
|
|
18,699,368
|
|
|
36.0
|
|
|
||||
Earnings Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets (annualized) (3)
|
|
0.64
|
%
|
|
0.88
|
%
|
|
(27.3
|
)
|
%
|
|
0.96
|
%
|
|
0.81
|
%
|
|
18.5
|
|
%
|
||||
Return on average SVBFG stockholders’ equity (annualized) (4)
|
|
8.50
|
|
|
10.12
|
|
|
(16.0
|
)
|
|
|
12.74
|
|
|
9.52
|
|
|
33.8
|
|
|
||||
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses as a percentage of total period-end gross loans
|
|
1.06
|
%
|
|
1.23
|
%
|
|
(17
|
)
|
bps
|
|
1.06
|
%
|
|
1.23
|
%
|
|
(17
|
)
|
bps
|
||||
Allowance for loan losses for performing loans as a percentage of total gross performing loans
|
|
1.02
|
|
|
1.13
|
|
|
(11
|
)
|
|
|
1.02
|
|
|
1.13
|
|
|
(11
|
)
|
|
||||
Gross loan charge-offs as a percentage of average total gross loans (annualized)
|
|
0.23
|
|
|
0.68
|
|
|
(45
|
)
|
|
|
0.50
|
|
|
0.47
|
|
|
3
|
|
|
||||
Net loan charge-offs as a percentage of average total gross loans (annualized)
|
|
0.17
|
|
|
0.49
|
|
|
(32
|
)
|
|
|
0.45
|
|
|
0.35
|
|
|
10
|
|
|
||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total risk-based capital ratio
|
|
15.36
|
%
|
|
14.03
|
%
|
|
133
|
|
bps
|
|
15.36
|
%
|
|
14.03
|
%
|
|
133
|
|
bps
|
||||
Tier 1 risk-based capital ratio
|
|
14.42
|
|
|
12.84
|
|
|
158
|
|
|
|
14.42
|
|
|
12.84
|
|
|
158
|
|
|
||||
Tier 1 leverage ratio
|
|
8.74
|
|
|
8.78
|
|
|
(4
|
)
|
|
|
8.74
|
|
|
8.78
|
|
|
(4
|
)
|
|
||||
Tangible common equity to tangible assets (5)
|
|
8.03
|
|
|
8.34
|
|
|
(31
|
)
|
|
|
8.03
|
|
|
8.34
|
|
|
(31
|
)
|
|
||||
Tangible common equity to risk-weighted assets (5)
|
|
14.52
|
|
|
12.73
|
|
|
179
|
|
|
|
14.52
|
|
|
12.73
|
|
|
179
|
|
|
||||
Bank total risk-based capital ratio
|
|
13.41
|
|
|
12.42
|
|
|
99
|
|
|
|
13.41
|
|
|
12.42
|
|
|
99
|
|
|
||||
Bank tier 1 risk-based capital ratio
|
|
12.45
|
|
|
11.20
|
|
|
125
|
|
|
|
12.45
|
|
|
11.20
|
|
|
125
|
|
|
||||
Bank tier 1 leverage ratio
|
|
7.51
|
|
|
7.66
|
|
|
(15
|
)
|
|
|
7.51
|
|
|
7.66
|
|
|
(15
|
)
|
|
||||
Bank tangible common equity to tangible assets (5)
|
|
7.22
|
|
|
7.60
|
|
|
(38
|
)
|
|
|
7.22
|
|
|
7.60
|
|
|
(38
|
)
|
|
||||
Bank tangible common equity to risk-weighted assets (5)
|
|
12.65
|
|
|
11.18
|
|
|
147
|
|
|
|
12.65
|
|
|
11.18
|
|
|
147
|
|
|
||||
Other Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating efficiency ratio (6)
|
|
78.98
|
%
|
|
53.32
|
%
|
|
48.1
|
|
%
|
|
47.60
|
%
|
|
57.21
|
%
|
|
(16.8
|
)
|
%
|
||||
Non-GAAP operating efficiency ratio (2)
|
|
65.97
|
|
|
59.01
|
|
|
11.8
|
|
|
|
58.64
|
|
|
62.62
|
|
|
(6.4
|
)
|
|
||||
Book value per common share (7)
|
|
$
|
52.78
|
|
|
$
|
40.65
|
|
|
29.8
|
|
|
|
$
|
52.78
|
|
|
$
|
40.65
|
|
|
29.8
|
|
|
Other Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average full-time equivalent employees
|
|
1,768
|
|
|
1,657
|
|
|
6.7
|
|
%
|
|
1,751
|
|
|
1,656
|
|
|
5.7
|
|
%
|
||||
Period-end full-time equivalent employees
|
|
1,786
|
|
|
1,657
|
|
|
7.8
|
|
|
|
1,786
|
|
|
1,657
|
|
|
7.8
|
|
|
|
(1)
|
See “Results of Operations–Noninterest Income” for a description and reconciliation of non-GAAP core fee income and noninterest income.
|
(2)
|
See “Results of Operations–Noninterest Expense” for a description and reconciliation of non-GAAP noninterest expense and non-GAAP operating efficiency ratio.
|
(3)
|
Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and year-to-date average assets.
|
(4)
|
Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and year-to-date average SVBFG stockholders’ equity.
|
(5)
|
See “Capital Resources–Capital Ratios” for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets.
|
(6)
|
The operating efficiency ratio is calculated by dividing total noninterest expense by total taxable-equivalent net interest income plus noninterest income.
|
(7)
|
Book value per common share is calculated by dividing total SVBFG stockholders’ equity by total outstanding common shares at period-end.
|
|
|
2014 Compared to 2013
|
|
2014 Compared to 2013
|
||||||||||||||||||||
|
|
Three months ended June 30, increase (decrease) due to change in
|
|
Six months ended June 30, increase (decrease) due to change in
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities
|
|
$
|
1,644
|
|
|
$
|
(435
|
)
|
|
$
|
1,209
|
|
|
$
|
2,804
|
|
|
$
|
(678
|
)
|
|
$
|
2,126
|
|
Fixed income investment portfolio (taxable)
|
|
21,781
|
|
|
(3,014
|
)
|
|
18,767
|
|
|
28,076
|
|
|
(641
|
)
|
|
27,435
|
|
||||||
Fixed income investment portfolio (non-taxable)
|
|
(14
|
)
|
|
(7
|
)
|
|
(21
|
)
|
|
(48
|
)
|
|
23
|
|
|
(25
|
)
|
||||||
Loans, net of unearned income
|
|
28,165
|
|
|
(12,270
|
)
|
|
15,895
|
|
|
56,897
|
|
|
(16,574
|
)
|
|
40,323
|
|
||||||
Increase (decrease) in interest income, net
|
|
51,576
|
|
|
(15,726
|
)
|
|
35,850
|
|
|
87,729
|
|
|
(17,870
|
)
|
|
69,859
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NOW deposits
|
|
17
|
|
|
16
|
|
|
33
|
|
|
31
|
|
|
21
|
|
|
52
|
|
||||||
Money market deposits
|
|
1,229
|
|
|
(220
|
)
|
|
1,009
|
|
|
2,204
|
|
|
(278
|
)
|
|
1,926
|
|
||||||
Money market deposits in foreign offices
|
|
14
|
|
|
(8
|
)
|
|
6
|
|
|
32
|
|
|
(8
|
)
|
|
24
|
|
||||||
Time deposits
|
|
(29
|
)
|
|
(48
|
)
|
|
(77
|
)
|
|
(30
|
)
|
|
(120
|
)
|
|
(150
|
)
|
||||||
Sweep deposits in foreign offices
|
|
21
|
|
|
(9
|
)
|
|
12
|
|
|
(7
|
)
|
|
(9
|
)
|
|
(16
|
)
|
||||||
Total increase (decrease) in deposits expense
|
|
1,252
|
|
|
(269
|
)
|
|
983
|
|
|
2,230
|
|
|
(394
|
)
|
|
1,836
|
|
||||||
Short-term borrowings
|
|
(43
|
)
|
|
—
|
|
|
(43
|
)
|
|
(71
|
)
|
|
—
|
|
|
(71
|
)
|
||||||
5.375% Senior Notes
|
|
—
|
|
|
7
|
|
|
7
|
|
|
6
|
|
|
8
|
|
|
14
|
|
||||||
Junior Subordinated Debentures
|
|
—
|
|
|
16
|
|
|
16
|
|
|
(5
|
)
|
|
28
|
|
|
23
|
|
||||||
6.05% Subordinated Notes
|
|
(5
|
)
|
|
16
|
|
|
11
|
|
|
(10
|
)
|
|
33
|
|
|
23
|
|
||||||
Total (decrease) increase in borrowings expense
|
|
(48
|
)
|
|
39
|
|
|
(9
|
)
|
|
(80
|
)
|
|
69
|
|
|
(11
|
)
|
||||||
Increase (decrease) in interest expense, net
|
|
1,204
|
|
|
(230
|
)
|
|
974
|
|
|
2,150
|
|
|
(325
|
)
|
|
1,825
|
|
||||||
Increase (decrease) in net interest income
|
|
$
|
50,372
|
|
|
$
|
(15,496
|
)
|
|
$
|
34,876
|
|
|
$
|
85,579
|
|
|
$
|
(17,545
|
)
|
|
$
|
68,034
|
|
•
|
Interest income
for the
three months ended
June 30, 2014
increased by
$35.9 million
primarily due to:
|
◦
|
An
$18.7 million
increase in interest income on investment securities to
$64.6 million
for the three months ended
June 30, 2014
, compared to
$45.9 million
for the comparable 2013 period. The increase was reflective of an increase in average investment securities balances of
$4.8 billion
as a result of deposit growth, offset by a decrease in the overall yield on our investment securities portfolio, which decreased 6 basis points to 1.71 percent. Lower reinvestment yields, resulting from a lower overall market rate environment and an increase in purchases of shorter term U.S. Treasury securities during the three months ended June 30, 2014, contributed to a decline of 13 basis points. The decline was partially offset by a 7 basis point benefit from lower premium amortization expense. As of
June 30, 2014
, the remaining unamortized premium balance, net of discounts, on our investment securities portfolio was $17.8 million (net of discounts of $85.3 million), compared to $99.6 million (net of discounts of $16.3 million) for the comparable 2013 period.
|
◦
|
A
$15.9 million
increase in interest income on loans to
$147.7 million
for the three months ended June 30, 2014, compared to
$131.8 million
for the comparable 2013 period. This increase was reflective of an increase in average loan balances of
$2.1 billion
, partially offset by a decrease from both gross loan and loan fee yields. Gross loan yields, excluding loan interest recoveries and loan fees, decreased to 4.49 percent from 4.90 percent, reflective of a continued change in the mix of our overall loan portfolio. Loan fee yields decreased to 77 basis
|
•
|
Interest expense
for the
three months ended
June 30, 2014
increased to
$8.9 million
, compared to
$7.9 million
for the comparable 2013 period. The increase in interest expense was primarily from interest-bearing money market deposits of
$1.0 million
, mainly attributable to growth of our average money market deposits of $2.1 billion.
|
•
|
Interest income
for the
six
months ended
June 30, 2014
increased by
$69.9 million
primarily due to:
|
◦
|
A
$40.3 million
increase in interest income on loans, primarily due to an increase in average loan balances of $2.1 billion. In addition, driven by early loan repayments, non-recurring loan fee income increased $6.1 million to $18.1 million for the six months ended June 30, 2014 compared to $12.0 million for the comparable 2013 period. Gross loan yields, excluding loan interest recoveries and loan fees, decreased to 4.53 percent from 4.92 percent, reflective of a continued change in the mix of our overall loan portfolio. As mentioned above, our loan growth through the second quarter of 2014 has primarily come from our venture capital/private equity loan portfolio which, on average, has lower yielding loans. Additionally, the overall low market rate environment and increased price competition have also impacted interest income. The decrease in gross loan yields was partially offset by loan interest recoveries of $3.3 million for the six months ended June 30, 2014, compared to $0.6 million for the comparable 2013 period.
|
◦
|
A
$27.4 million
increase in interest income on investment securities, with the majority of the increase due to a $3.1 billion increase in average balances due to strong deposit growth.
|
•
|
Interest expense
for the
six months ended
June 30, 2014
increased to
$17.6 million
, compared to
$15.7 million
for the comparable 2013 period. The increase in interest expense was primarily from interest-bearing money market deposits of
$1.9 million
, mainly attributable to growth of our average money market deposits of $1.8 billion.
|
|
|
Three months ended June 30,
|
||||||||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||||||||
(Dollars in thousands)
|
|
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)
|
|
$
|
3,210,218
|
|
|
$
|
1,943
|
|
|
0.24
|
%
|
|
$
|
693,297
|
|
|
$
|
734
|
|
|
0.42
|
%
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
13,342,544
|
|
|
53,915
|
|
|
1.62
|
|
|
10,342,873
|
|
|
44,657
|
|
|
1.73
|
|
||||
Non-taxable (3)
|
|
54,721
|
|
|
815
|
|
|
5.97
|
|
|
82,943
|
|
|
1,242
|
|
|
6.01
|
|
||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
1,765,204
|
|
|
9,509
|
|
|
2.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Non-taxable (3)
|
|
28,494
|
|
|
406
|
|
|
5.72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total loans, net of unearned income (4) (5)
|
|
11,080,602
|
|
|
147,680
|
|
|
5.35
|
|
|
9,022,173
|
|
|
131,785
|
|
|
5.86
|
|
||||
Total interest-earning assets
|
|
29,481,783
|
|
|
214,268
|
|
|
2.91
|
|
|
20,141,286
|
|
|
178,418
|
|
|
3.55
|
|
||||
Cash and due from banks
|
|
60,373
|
|
|
|
|
|
|
299,886
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(128,465
|
)
|
|
|
|
|
|
(118,635
|
)
|
|
|
|
|
||||||||
Other assets (6)
|
|
2,331,939
|
|
|
|
|
|
|
1,770,761
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
31,745,630
|
|
|
|
|
|
|
$
|
22,093,298
|
|
|
|
|
|
||||||
Funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW deposits
|
|
$
|
159,316
|
|
|
$
|
155
|
|
|
0.39
|
%
|
|
$
|
140,725
|
|
|
$
|
122
|
|
|
0.35
|
%
|
Money market deposits
|
|
5,338,785
|
|
|
2,561
|
|
|
0.19
|
|
|
3,220,618
|
|
|
1,552
|
|
|
0.19
|
|
||||
Money market deposits in foreign offices
|
|
201,821
|
|
|
38
|
|
|
0.08
|
|
|
133,084
|
|
|
32
|
|
|
0.10
|
|
||||
Time deposits
|
|
150,731
|
|
|
92
|
|
|
0.24
|
|
|
179,361
|
|
|
169
|
|
|
0.38
|
|
||||
Sweep deposits in foreign offices
|
|
1,853,930
|
|
|
222
|
|
|
0.05
|
|
|
1,682,901
|
|
|
210
|
|
|
0.05
|
|
||||
Total interest-bearing deposits
|
|
7,704,583
|
|
|
3,068
|
|
|
0.16
|
|
|
5,356,689
|
|
|
2,085
|
|
|
0.16
|
|
||||
Short-term borrowings
|
|
4,554
|
|
|
—
|
|
|
—
|
|
|
24,019
|
|
|
43
|
|
|
0.72
|
|
||||
5.375% Senior Notes
|
|
348,284
|
|
|
4,830
|
|
|
5.56
|
|
|
348,066
|
|
|
4,823
|
|
|
5.56
|
|
||||
Junior Subordinated Debentures
|
|
54,962
|
|
|
848
|
|
|
6.19
|
|
|
55,138
|
|
|
832
|
|
|
6.05
|
|
||||
6.05% Subordinated Notes
|
|
51,470
|
|
|
130
|
|
|
1.01
|
|
|
53,766
|
|
|
119
|
|
|
0.89
|
|
||||
Total interest-bearing liabilities
|
|
8,163,853
|
|
|
8,876
|
|
|
0.44
|
|
|
5,837,678
|
|
|
7,902
|
|
|
0.54
|
|
||||
Portion of noninterest-bearing funding sources
|
|
21,317,930
|
|
|
|
|
|
|
14,303,608
|
|
|
|
|
|
||||||||
Total funding sources
|
|
29,481,783
|
|
|
8,876
|
|
|
0.12
|
|
|
20,141,286
|
|
|
7,902
|
|
|
0.15
|
|
||||
Noninterest-bearing funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
19,472,542
|
|
|
|
|
|
|
13,257,481
|
|
|
|
|
|
||||||||
Other liabilities
|
|
398,492
|
|
|
|
|
|
|
290,381
|
|
|
|
|
|
||||||||
SVBFG stockholders’ equity
|
|
2,397,386
|
|
|
|
|
|
|
1,924,902
|
|
|
|
|
|
||||||||
Noncontrolling interests
|
|
1,313,357
|
|
|
|
|
|
|
782,856
|
|
|
|
|
|
||||||||
Portion used to fund interest-earning assets
|
|
(21,317,930
|
)
|
|
|
|
|
|
(14,303,608
|
)
|
|
|
|
|
||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity
|
|
$
|
31,745,630
|
|
|
|
|
|
|
$
|
22,093,298
|
|
|
|
|
|
||||||
Net interest income and margin
|
|
|
|
$
|
205,392
|
|
|
2.79
|
%
|
|
|
|
$
|
170,516
|
|
|
3.40
|
%
|
||||
Total deposits
|
|
$
|
27,177,125
|
|
|
|
|
|
|
$
|
18,614,170
|
|
|
|
|
|
||||||
Reconciliation to reported net interest income
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments for taxable equivalent basis
|
|
|
|
(427
|
)
|
|
|
|
|
|
(435
|
)
|
|
|
||||||||
Net interest income, as reported
|
|
|
|
$
|
204,965
|
|
|
|
|
|
|
$
|
170,081
|
|
|
|
|
(1)
|
Includes average interest-earning deposits in other financial institutions of
$342 million
and
$157 million
for the
three months ended
June 30, 2014
and
2013
, respectively. For the
three months ended
June 30, 2014
and
2013
, balances also include
$2.5 billion
and
$404 million
, respectively, deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate.
|
(2)
|
Yields on available-for-sale securities are based on amortized cost, and therefore do not give effect to unrealized changes in fair value that are reflected in other comprehensive income.
|
(3)
|
Interest income on non-taxable investment securities are presented on a fully taxable-equivalent basis using the federal statutory income tax rate of 35.0 percent for all periods presented.
|
(4)
|
Nonaccrual loans are reflected in the average balances of loans.
|
(5)
|
Interest income includes loan fees of
$21.3 million
and
$20.3 million
for the
three months ended
June 30, 2014
and
2013
, respectively.
|
(6)
|
Average investment securities of
$1.8 billion
and
$1.4 billion
for the
three months ended
June 30, 2014
and
2013
, respectively, were classified as other assets as they were noninterest-earning assets. These investments primarily consisted of non-marketable and other securities.
|
|
|
Six months ended June 30,
|
||||||||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||||||||
(Dollars in thousands)
|
|
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)
|
|
$
|
2,848,215
|
|
|
$
|
3,579
|
|
|
0.25
|
%
|
|
$
|
757,501
|
|
|
$
|
1,453
|
|
|
0.39
|
%
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
12,758,090
|
|
|
108,335
|
|
|
1.71
|
|
|
10,572,031
|
|
|
90,409
|
|
|
1.72
|
|
||||
Non-taxable (3)
|
|
68,177
|
|
|
2,040
|
|
|
6.03
|
|
|
83,374
|
|
|
2,471
|
|
|
5.98
|
|
||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
887,478
|
|
|
9,509
|
|
|
2.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Non-taxable (3)
|
|
14,326
|
|
|
406
|
|
|
5.71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total loans, net of unearned income (4) (5)
|
|
10,925,007
|
|
|
295,852
|
|
|
5.46
|
|
|
8,852,488
|
|
|
255,529
|
|
|
5.82
|
|
||||
Total interest-earning assets
|
|
27,501,293
|
|
|
419,721
|
|
|
3.08
|
|
|
20,265,394
|
|
|
349,862
|
|
|
3.48
|
|
||||
Cash and due from banks
|
|
161,862
|
|
|
|
|
|
|
289,590
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(134,734
|
)
|
|
|
|
|
|
(117,069
|
)
|
|
|
|
|
||||||||
Other assets (5)
|
|
2,239,200
|
|
|
|
|
|
|
1,765,402
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
29,767,621
|
|
|
|
|
|
|
$
|
22,203,317
|
|
|
|
|
|
||||||
Funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW deposits
|
|
$
|
155,050
|
|
|
$
|
291
|
|
|
0.38
|
%
|
|
$
|
138,095
|
|
|
$
|
239
|
|
|
0.35
|
%
|
Money market deposits
|
|
4,962,911
|
|
|
4,973
|
|
|
0.20
|
|
|
3,132,310
|
|
|
3,047
|
|
|
0.20
|
|
||||
Money market deposits in foreign offices
|
|
196,796
|
|
|
84
|
|
|
0.09
|
|
|
124,420
|
|
|
60
|
|
|
0.10
|
|
||||
Time deposits
|
|
159,343
|
|
|
192
|
|
|
0.24
|
|
|
175,900
|
|
|
342
|
|
|
0.39
|
|
||||
Sweep deposits in foreign offices
|
|
1,778,665
|
|
|
432
|
|
|
0.05
|
|
|
1,807,008
|
|
|
448
|
|
|
0.05
|
|
||||
Total interest-bearing deposits
|
|
7,252,765
|
|
|
5,972
|
|
|
0.17
|
|
|
5,377,733
|
|
|
4,136
|
|
|
0.16
|
|
||||
Short-term borrowings
|
|
4,768
|
|
|
—
|
|
|
—
|
|
|
49,339
|
|
|
71
|
|
|
0.29
|
|
||||
5.375% Senior Notes
|
|
348,256
|
|
|
9,658
|
|
|
5.59
|
|
|
348,040
|
|
|
9,644
|
|
|
5.59
|
|
||||
Junior Subordinated Debentures
|
|
54,984
|
|
|
1,687
|
|
|
6.19
|
|
|
55,159
|
|
|
1,664
|
|
|
6.08
|
|
||||
6.05% Subordinated Notes
|
|
51,717
|
|
|
255
|
|
|
0.99
|
|
|
54,023
|
|
|
232
|
|
|
0.87
|
|
||||
Total interest-bearing liabilities
|
|
7,712,490
|
|
|
17,572
|
|
|
0.46
|
|
|
5,884,294
|
|
|
15,747
|
|
|
0.54
|
|
||||
Portion of noninterest-bearing funding sources
|
|
19,788,803
|
|
|
|
|
|
|
14,381,100
|
|
|
|
|
|
||||||||
Total funding sources
|
|
27,501,293
|
|
|
17,572
|
|
|
0.13
|
|
|
20,265,394
|
|
|
15,747
|
|
|
0.16
|
|
||||
Noninterest-bearing funding sources
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
18,183,692
|
|
|
|
|
|
|
13,321,635
|
|
|
|
|
|
||||||||
Other liabilities
|
|
397,354
|
|
|
|
|
|
|
324,954
|
|
|
|
|
|
||||||||
SVBFG stockholders’ equity
|
|
2,249,425
|
|
|
|
|
|
|
1,895,768
|
|
|
|
|
|
||||||||
Noncontrolling interests
|
|
1,224,660
|
|
|
|
|
|
|
776,666
|
|
|
|
|
|
||||||||
Portion used to fund interest-earning assets
|
|
(19,788,803
|
)
|
|
|
|
|
|
(14,381,100
|
)
|
|
|
|
|
||||||||
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity
|
|
$
|
29,767,621
|
|
|
|
|
|
|
$
|
22,203,317
|
|
|
|
|
|
||||||
Net interest income and margin
|
|
|
|
$
|
402,149
|
|
|
2.95
|
%
|
|
|
|
$
|
334,115
|
|
|
3.32
|
%
|
||||
Total deposits
|
|
$
|
25,436,457
|
|
|
|
|
|
|
$
|
18,699,368
|
|
|
|
|
|
||||||
Reconciliation to reported net interest income
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments for taxable equivalent basis
|
|
|
|
(856
|
)
|
|
|
|
|
|
(865
|
)
|
|
|
||||||||
Net interest income, as reported
|
|
|
|
$
|
401,293
|
|
|
|
|
|
|
$
|
333,250
|
|
|
|
|
(1)
|
Includes average interest-earning deposits in other financial institutions of
$330 million
and
$167 million
for the
six
months ended
June 30, 2014
and
2013
, respectively. For the
six
months ended
June 30, 2014
and
2013
, balances also include
$2.3 billion
and
$0.4 billion
, respectively, deposited at the FRB, earning interest at the Federal Funds target rate.
|
(2)
|
Yields on available-for-sale securities are based on amortized cost, and therefore do not give effect to unrealized changes in fair value that are reflected in other comprehensive income.
|
(3)
|
Interest income on non-taxable investment securities are presented on a fully taxable-equivalent basis using the federal statutory income tax rate of 35.0 percent for all periods presented.
|
(4)
|
Nonaccrual loans are reflected in the average balances of loans.
|
(5)
|
Interest income includes loan fees of
$46 million
and
$37 million
for the
six
months ended
June 30, 2014
and
2013
, respectively.
|
(6)
|
Average investment securities of
$1.7 billion
and
$1.4 billion
for the
six
months ended
June 30, 2014
and
2013
, respectively, were classified as other assets as they were noninterest-earning assets. These investments primarily consisted of non-marketable and other securities.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Allowance for loan losses, beginning balance
|
|
$
|
123,542
|
|
|
$
|
112,205
|
|
|
$
|
142,886
|
|
|
$
|
110,651
|
|
Provision for loan losses
|
|
1,947
|
|
|
18,572
|
|
|
2,441
|
|
|
24,385
|
|
||||
Gross loan charge-offs
|
|
(6,382
|
)
|
|
(15,375
|
)
|
|
(27,532
|
)
|
|
(21,001
|
)
|
||||
Loan recoveries
|
|
1,621
|
|
|
4,169
|
|
|
2,933
|
|
|
5,536
|
|
||||
Allowance for loan losses, ending balance
|
|
$
|
120,728
|
|
|
$
|
119,571
|
|
|
$
|
120,728
|
|
|
$
|
119,571
|
|
Provision for loan losses as a percentage of period-end total gross loans (annualized)
|
|
0.07
|
%
|
|
0.77
|
%
|
|
0.04
|
%
|
|
0.51
|
%
|
||||
Gross loan charge-offs as a percentage of average total gross loans (annualized)
|
|
0.23
|
|
|
0.68
|
|
|
0.50
|
|
|
0.47
|
|
||||
Net loan charge-offs as a percentage of average total gross loans (annualized)
|
|
0.17
|
|
|
0.49
|
|
|
0.45
|
|
|
0.35
|
|
||||
Allowance for loan losses as a percentage of period-end total gross loans
|
|
1.06
|
|
|
1.23
|
|
|
1.06
|
|
|
1.23
|
|
||||
Period-end total gross loans
|
|
$
|
11,437,300
|
|
|
$
|
9,705,464
|
|
|
$
|
11,437,300
|
|
|
$
|
9,705,464
|
|
Average total gross loans
|
|
11,166,021
|
|
|
9,100,420
|
|
|
11,010,328
|
|
|
8,929,012
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Non-GAAP core fee income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange fees
|
|
$
|
17,928
|
|
|
$
|
13,667
|
|
|
31.2
|
%
|
|
$
|
35,124
|
|
|
$
|
27,863
|
|
|
26.1
|
%
|
Credit card fees
|
|
10,249
|
|
|
7,609
|
|
|
34.7
|
|
|
20,531
|
|
|
15,057
|
|
|
36.4
|
|
||||
Deposit service charges
|
|
9,611
|
|
|
8,907
|
|
|
7.9
|
|
|
19,218
|
|
|
17,700
|
|
|
8.6
|
|
||||
Lending related fees (1)
|
|
5,876
|
|
|
4,596
|
|
|
27.9
|
|
|
12,179
|
|
|
8,570
|
|
|
42.1
|
|
||||
Client investment fees
|
|
3,519
|
|
|
3,524
|
|
|
(0.1
|
)
|
|
6,937
|
|
|
6,999
|
|
|
(0.9
|
)
|
||||
Letters of credit and standby letters of credit fees
|
|
2,810
|
|
|
3,654
|
|
|
(23.1
|
)
|
|
6,950
|
|
|
7,089
|
|
|
(2.0
|
)
|
||||
Total non-GAAP core fee income (2)
|
|
49,993
|
|
|
41,957
|
|
|
19.2
|
|
|
100,939
|
|
|
83,278
|
|
|
21.2
|
|
||||
(Losses) gains on investment securities, net
|
|
(57,320
|
)
|
|
40,561
|
|
|
NM
|
|
|
166,592
|
|
|
67,999
|
|
|
145.0
|
|
||||
Gains on derivative instruments, net
|
|
12,775
|
|
|
8,087
|
|
|
58.0
|
|
|
36,942
|
|
|
18,379
|
|
|
101.0
|
|
||||
Other
|
|
8,762
|
|
|
7,634
|
|
|
14.8
|
|
|
19,962
|
|
|
7,187
|
|
|
177.8
|
|
||||
Total noninterest income
|
|
$
|
14,210
|
|
|
$
|
98,239
|
|
|
(85.5
|
)
|
|
$
|
324,435
|
|
|
$
|
176,843
|
|
|
83.5
|
|
|
(1)
|
Lending related fees consists of fee income associated with credit commitments such as unused commitment fees, syndication fees and other loan processing fees and, historically, has been included in other noninterest income. Prior period amounts have been reclassified to conform to the current period presentation.
|
(2)
|
The following table provides a reconciliation of GAAP noninterest income to non-GAAP core fee income:
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
GAAP noninterest income (as reported)
|
|
$
|
14,210
|
|
|
$
|
98,239
|
|
|
(85.5
|
)%
|
|
$
|
324,435
|
|
|
$
|
176,843
|
|
|
83.5
|
%
|
Less: (losses) gains on investment securities, net
|
|
(57,320
|
)
|
|
40,561
|
|
|
NM
|
|
|
166,592
|
|
|
67,999
|
|
|
145.0
|
|
||||
Less: gains on derivative instruments, net
|
|
12,775
|
|
|
8,087
|
|
|
58.0
|
|
|
36,942
|
|
|
18,379
|
|
|
101.0
|
|
||||
Less: other noninterest income
|
|
8,762
|
|
|
7,634
|
|
|
14.8
|
|
|
19,962
|
|
|
7,187
|
|
|
177.8
|
|
||||
Non-GAAP core fee income (1)
|
|
$
|
49,993
|
|
|
$
|
41,957
|
|
|
19.2
|
|
|
$
|
100,939
|
|
|
$
|
83,278
|
|
|
21.2
|
|
|
(1)
|
This non-GAAP measure represents noninterest income, but excludes certain line items where performance is typically subject to market or other conditions beyond our control.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
Non-GAAP noninterest income, net of noncontrolling interests (Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
GAAP noninterest income (as reported)
|
|
$
|
14,210
|
|
|
$
|
98,239
|
|
|
(85.5
|
)%
|
|
$
|
324,435
|
|
|
$
|
176,843
|
|
|
83.5
|
%
|
Less: (losses) income attributable to noncontrolling interests, including carried interest
|
|
(35,325
|
)
|
|
30,751
|
|
|
NM
|
|
|
151,393
|
|
|
53,241
|
|
|
184.4
|
|
||||
Non-GAAP noninterest income, net of noncontrolling interests
|
|
$
|
49,535
|
|
|
$
|
67,488
|
|
|
(26.6
|
)
|
|
$
|
173,042
|
|
|
$
|
123,602
|
|
|
40.0
|
|
|
•
|
Losses of
$16.8 million
from our managed direct venture funds, mainly due to the decrease in the public company stock price of FireEye.
|
•
|
Losses of $16.5 million from our equity securities holdings, primarily attributable to the sale of shares of FireEye common stock (acquired through the exercise of certain warrants), the stock price of which decreased since March 31, 2014.
|
•
|
Gains of
$8.6 million
from our strategic and other investments, primarily driven by distributions from strategic venture capital fund investments as well as the sale of one of our direct equity investments, for which we recorded a realized gain of $4.7 million.
|
•
|
Gains of $3.0 million from our managed funds of funds, primarily related to unrealized valuation adjustments of two of our funds of funds.
|
•
|
Losses of $16.5 million from our equity securities holdings, primarily attributable to the sale of shares of FireEye common stock (acquired through the exercise of certain warrants), the stock price of which decreased since March 31, 2014.
|
•
|
Gains of $13.0 million from our managed funds of funds, primarily related to unrealized valuation adjustments of three of our funds of funds and.
|
•
|
Gains of $12.3 million from our strategic and other investments, primarily driven by distributions from strategic venture capital fund investments as well as the acquisition of one of our direct equity investments during the second quarter of 2014, for which we recorded a gain of $4.7 million.
|
•
|
Gains of $3.8 million from our managed direct venture funds, driven by net valuation gains from stock performance of public companies.
|
•
|
Gains of $3.0 million from our investments in debt funds, primarily from unrealized valuation increases from the investments within the funds.
|
(Dollars in thousands)
|
|
Managed
Funds of
Funds
|
|
Managed
Direct
Venture
Funds
|
|
Debt
Funds
|
|
Available-
For-Sale
Securities
|
|
Strategic
and Other
Investments
|
|
Total
|
||||||||||||
Three months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total (losses) gains on investment securities, net
|
|
$
|
38,478
|
|
|
$
|
(87,548
|
)
|
|
$
|
(356
|
)
|
|
$
|
(16,480
|
)
|
|
$
|
8,586
|
|
|
$
|
(57,320
|
)
|
Less: (losses) gains attributable to noncontrolling interests, including carried interest
|
|
35,507
|
|
|
(70,746
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(35,240
|
)
|
||||||
Non-GAAP net (losses) gains on investment securities, net of noncontrolling interests
|
|
$
|
2,971
|
|
|
$
|
(16,802
|
)
|
|
$
|
(355
|
)
|
|
$
|
(16,480
|
)
|
|
$
|
8,586
|
|
|
$
|
(22,080
|
)
|
Three months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total gains on investment securities, net
|
|
$
|
33,626
|
|
|
$
|
987
|
|
|
$
|
1,799
|
|
|
$
|
775
|
|
|
$
|
3,374
|
|
|
$
|
40,561
|
|
Less: gains (losses) attributable to noncontrolling interests, including carried interest
|
|
30,021
|
|
|
1,047
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
31,067
|
|
||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests
|
|
$
|
3,605
|
|
|
$
|
(60
|
)
|
|
$
|
1,800
|
|
|
$
|
775
|
|
|
$
|
3,374
|
|
|
$
|
9,494
|
|
Six months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total gains (losses) on investment securities, net
|
|
$
|
149,926
|
|
|
$
|
18,154
|
|
|
$
|
2,645
|
|
|
$
|
(16,420
|
)
|
|
$
|
12,287
|
|
|
$
|
166,592
|
|
Less: gains (losses) attributable to noncontrolling interests, including carried interest
|
|
136,958
|
|
|
14,368
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
151,312
|
|
||||||
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests
|
|
$
|
12,968
|
|
|
$
|
3,786
|
|
|
$
|
2,659
|
|
|
$
|
(16,420
|
)
|
|
$
|
12,287
|
|
|
$
|
15,280
|
|
Six months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total gains on investment securities, net
|
|
$
|
56,428
|
|
|
$
|
2,843
|
|
|
$
|
3,552
|
|
|
$
|
730
|
|
|
$
|
4,446
|
|
|
$
|
67,999
|
|
Less: gains (losses) attributable to noncontrolling interests, including carried interest
|
|
50,823
|
|
|
2,543
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
53,363
|
|
||||||
Non-GAAP net gains on investment securities, net of noncontrolling interests
|
|
$
|
5,605
|
|
|
$
|
300
|
|
|
$
|
3,555
|
|
|
$
|
730
|
|
|
$
|
4,446
|
|
|
$
|
14,636
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Equity warrant assets (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on exercises, net
|
|
$
|
3,553
|
|
|
$
|
1,611
|
|
|
120.5
|
%
|
|
$
|
21,955
|
|
|
$
|
2,425
|
|
|
NM
|
|
Cancellations and expirations
|
|
(429
|
)
|
|
(118
|
)
|
|
NM
|
|
|
(516
|
)
|
|
(222
|
)
|
|
132.4
|
|
||||
Changes in fair value
|
|
9,205
|
|
|
5,697
|
|
|
61.6
|
|
|
16,263
|
|
|
8,492
|
|
|
91.5
|
|
||||
Net gains on equity warrant assets
|
|
12,329
|
|
|
7,190
|
|
|
71.5
|
|
|
37,702
|
|
|
10,695
|
|
|
NM
|
|
||||
Gains on foreign exchange forward contracts, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on client foreign exchange forward contracts, net (2)
|
|
170
|
|
|
124
|
|
|
37.1
|
|
|
472
|
|
|
173
|
|
|
172.8
|
|
||||
Gains (losses) on internal foreign exchange forward contracts, net (3)
|
|
538
|
|
|
712
|
|
|
(24.4
|
)
|
|
(491
|
)
|
|
6,912
|
|
|
(107.1
|
)
|
||||
Total gains (losses) on foreign exchange forward contracts, net
|
|
708
|
|
|
836
|
|
|
(15.3
|
)
|
|
(19
|
)
|
|
7,085
|
|
|
(100.3
|
)
|
||||
Changes in fair value of interest rate swaps
|
|
(13
|
)
|
|
(33
|
)
|
|
(60.6
|
)
|
|
(25
|
)
|
|
27
|
|
|
(192.6
|
)
|
||||
Net (losses) gains on other derivatives (4)
|
|
(249
|
)
|
|
94
|
|
|
NM
|
|
|
(716
|
)
|
|
572
|
|
|
NM
|
|
||||
Gains on derivative instruments, net
|
|
$
|
12,775
|
|
|
$
|
8,087
|
|
|
58.0
|
|
|
$
|
36,942
|
|
|
$
|
18,379
|
|
|
101.0
|
|
|
(1)
|
At
June 30, 2014
, we held warrants in
1,383
companies, compared to
1,302
companies at
June 30, 2013
.
|
(2)
|
Represents the net gains for foreign exchange forward contracts executed on behalf of clients, excluding any spread or fees earned in connection with these trades.
|
(3)
|
Represents the change in the fair value of foreign exchange forward contracts used to economically reduce our foreign exchange exposure related to certain foreign currency denominated instruments. Refer to revaluation of foreign currency instruments included in the line item "other" within noninterest income for the amount we were able to partially offset.
|
(4)
|
Primarily represents the change in fair value of loan conversion options held by SVB Financial.
|
•
|
Net gains on equity warrant assets of $12.3 million for the three months ended
June 30, 2014
, compared to
$7.2 million
for the comparable
2013
period. The $5.1 million increase was primarily due to net gains of $9.2 million from changes in warrant valuations, primarily attributable to our private company warrant portfolio, compared to net gains of
$5.7 million
for the comparable 2013 period.
|
•
|
Net gains of
$0.5 million
on foreign exchange forward contracts hedging certain of our foreign currency denominated instruments for the
three months ended
June 30, 2014
, compared to
$0.7 million
for the comparable
2013
period. The lower gains for the
three months ended
June 30, 2014
were primarily attributable to the weakening of the U.S. Dollar against the Euro and Pound Sterling, and were offset by losses of $0.7 million from the revaluation of foreign currency denominated instruments that are included in the line item "other" within noninterest income as noted below.
|
•
|
Net gains on equity warrant assets of
$37.7 million
for the
six months ended
June 30, 2014
, compared to
$10.7 million
for the comparable
2013
period. The $27.0 million increase was primarily due to net gains of $22.0 million from the exercise of equity warrant assets, primarily reflective of the exercise and conversion of our FireEye equity warrants, compared to $2.4 million for the comparable 2013 period. Additionally, net gains of $16.3 million came from changes
|
•
|
Net losses of
$0.5 million
on foreign exchange forward contracts hedging certain of our foreign currency denominated instruments for the
six months ended
June 30, 2014
, compared to net gains of
$6.9 million
for the comparable
2013
period. The losses recognized for the
three months ended
June 30, 2014
were primarily attributable to the strengthening of the U.S. Dollar against the Euro and Pound Sterling and were offset by gains of $0.3 million from the revaluation of foreign currency denominated instruments that are included in the line item "other" within noninterest income as noted below.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in millions)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Client directed investment assets (1)
|
|
$
|
7,513
|
|
|
$
|
6,847
|
|
|
9.7
|
%
|
|
$
|
7,347
|
|
|
$
|
6,872
|
|
|
6.9
|
%
|
Client investment assets under management (2)
|
|
16,102
|
|
|
11,498
|
|
|
40.0
|
|
|
14,808
|
|
|
11,403
|
|
|
29.9
|
|
||||
Sweep money market funds
|
|
6,537
|
|
|
4,856
|
|
|
34.6
|
|
|
6,489
|
|
|
4,570
|
|
|
42.0
|
|
||||
Total average client investment funds (3)
|
|
$
|
30,152
|
|
|
$
|
23,201
|
|
|
30.0
|
|
|
$
|
28,644
|
|
|
$
|
22,845
|
|
|
25.4
|
|
|
(1)
|
Comprised of mutual funds and Repurchase Agreement Program assets.
|
(2)
|
These funds represent investments in third party money market mutual funds and fixed-income securities managed by SVB Asset Management.
|
(3)
|
Client investment funds are maintained at third party financial institutions and are not recorded on our balance sheet.
|
(Dollars in millions)
|
|
June 30, 2014
|
|
December 31, 2013
|
|
% Change
|
|||||
Client directed investment assets
|
|
$
|
6,979
|
|
|
$
|
7,073
|
|
|
(1.3
|
)%
|
Client investment assets under management
|
|
16,960
|
|
|
12,677
|
|
|
33.8
|
|
||
Sweep money market funds
|
|
6,437
|
|
|
6,613
|
|
|
(2.7
|
)
|
||
Total period-end client investment funds
|
|
$
|
30,376
|
|
|
$
|
26,363
|
|
|
15.2
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Fund management fees
|
|
$
|
3,559
|
|
|
$
|
2,940
|
|
|
21.1
|
%
|
|
$
|
6,314
|
|
|
$
|
5,709
|
|
|
10.6
|
%
|
Service-based fee income
|
|
2,252
|
|
|
2,001
|
|
|
12.5
|
|
|
4,279
|
|
|
3,805
|
|
|
12.5
|
|
||||
(Losses) gains on revaluation of foreign currency instruments (1)
|
|
(685
|
)
|
|
(586
|
)
|
|
16.9
|
|
|
293
|
|
|
(7,650
|
)
|
|
(103.8
|
)
|
||||
Other (2)
|
|
3,636
|
|
|
3,279
|
|
|
10.9
|
|
|
9,076
|
|
|
5,323
|
|
|
70.5
|
|
||||
Total other noninterest income
|
|
$
|
8,762
|
|
|
$
|
7,634
|
|
|
14.8
|
|
|
$
|
19,962
|
|
|
$
|
7,187
|
|
|
177.8
|
|
|
(1)
|
Represents the revaluation of foreign currency denominated financial instruments issued and held by us, primarily loans, deposits and cash. These instruments partially offset the impact of changes in internal foreign exchange forward contracts. Refer to internal foreign exchange forward contracts, net included within gains on derivative instruments as noted above.
|
(2)
|
Includes dividends on FHLB/FRB stock, correspondent bank rebate income and other fee income.
|
•
|
Increase of $7.9 million from gains on the revaluation of foreign currency instruments of $0.3 million for the six months ended
June 30, 2014
, compared to losses of $7.7 million for the comparable
2013
period. The gain was offset by net losses of $0.5 million for the six months ended June 30, 2014, compared to net gains of $6.9 million for the comparable period of 2013, on internal foreign exchange forward contracts economically hedging certain of these instruments, which are included within noninterest income in the line item "gains on derivative instruments" as noted above. This resulted in net losses of $0.2 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively.
|
•
|
Increase of $3.8 million in other income primarily related to a gain on one of our foreign investment holdings.
|
•
|
$15.2 million gain from the exercise and conversion of our warrants during the first quarter of 2014 as we exercised the warrants at a share price of $88.19 on March 4, 2014 compared to the December 31, 2013 price of $43.61,
|
•
|
$14.0 million of realized losses from the sales of all FireEye warrant shares,
|
•
|
$66.5 million ($12.8 million net of noncontrolling interests) of realized gains from the distribution of shares held by our managed direct venture funds, and
|
•
|
$38.4 million ($7.5 million net of noncontrolling interests) of unrealized losses primarily from the decreased valuation of the remaining FireEye Shares held through our managed funds.
|
Non-GAAP losses on investments securities, net of noncontrolling interests (Dollars in millions)
|
|
Through August 6, 2014
|
||
GAAP losses on certain non-marketable and other securities
|
|
$
|
48
|
|
Less: losses attributable to noncontrolling interests, including carried interest
|
|
39
|
|
|
Non-GAAP losses on certain non-marketable and other securities, net of noncontrolling interests
|
|
$
|
9
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Compensation and benefits
|
|
$
|
99,820
|
|
|
$
|
84,742
|
|
|
17.8
|
%
|
|
$
|
202,327
|
|
|
$
|
173,446
|
|
|
16.7
|
%
|
Professional services
|
|
21,113
|
|
|
16,633
|
|
|
26.9
|
|
|
42,302
|
|
|
33,793
|
|
|
25.2
|
|
||||
Premises and equipment
|
|
12,053
|
|
|
11,402
|
|
|
5.7
|
|
|
23,635
|
|
|
22,127
|
|
|
6.8
|
|
||||
Business development and travel
|
|
9,249
|
|
|
7,783
|
|
|
18.8
|
|
|
19,443
|
|
|
16,055
|
|
|
21.1
|
|
||||
Net occupancy
|
|
7,680
|
|
|
5,795
|
|
|
32.5
|
|
|
15,000
|
|
|
11,562
|
|
|
29.7
|
|
||||
FDIC assessments
|
|
4,945
|
|
|
2,853
|
|
|
73.3
|
|
|
9,073
|
|
|
6,235
|
|
|
45.5
|
|
||||
Correspondent bank fees
|
|
3,274
|
|
|
3,049
|
|
|
7.4
|
|
|
6,477
|
|
|
6,104
|
|
|
6.1
|
|
||||
Provision for unfunded credit commitments
|
|
2,185
|
|
|
1,347
|
|
|
62.2
|
|
|
3,308
|
|
|
3,361
|
|
|
(1.6
|
)
|
||||
Other
|
|
13,127
|
|
|
9,688
|
|
|
35.5
|
|
|
24,317
|
|
|
19,623
|
|
|
23.9
|
|
||||
Total noninterest expense
|
|
$
|
173,446
|
|
|
$
|
143,292
|
|
|
21.0
|
|
|
$
|
345,882
|
|
|
$
|
292,306
|
|
|
18.3
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
Non-GAAP operating efficiency ratio, net of noncontrolling interests (Dollars in thousands, except ratios)
|
|
2014
|
|
2013
|
|
% Change
|
|
2013
|
|
2013
|
|
% Change
|
||||||||||
GAAP noninterest expense
|
|
$
|
173,446
|
|
|
$
|
143,292
|
|
|
21.0
|
%
|
|
$
|
345,882
|
|
|
$
|
292,306
|
|
|
18.3
|
%
|
Less: amounts attributable to noncontrolling interests
|
|
5,267
|
|
|
2,867
|
|
|
83.7
|
|
|
8,588
|
|
|
5,727
|
|
|
50.0
|
|
||||
Non-GAAP noninterest expense, net of noncontrolling interests
|
|
$
|
168,179
|
|
|
$
|
140,425
|
|
|
19.8
|
|
|
$
|
337,294
|
|
|
$
|
286,579
|
|
|
17.7
|
|
GAAP taxable equivalent net interest income
|
|
$
|
205,392
|
|
|
$
|
170,516
|
|
|
20.5
|
|
|
$
|
402,149
|
|
|
$
|
334,115
|
|
|
20.4
|
|
Less: (losses) income attributable to noncontrolling interests
|
|
(5
|
)
|
|
20
|
|
|
(125.0
|
)
|
|
3
|
|
|
44
|
|
|
(93.2
|
)
|
||||
Non-GAAP taxable equivalent net interest income, net of noncontrolling interests
|
|
$
|
205,397
|
|
|
$
|
170,496
|
|
|
20.5
|
|
|
$
|
402,146
|
|
|
$
|
334,071
|
|
|
20.4
|
|
GAAP noninterest income
|
|
$
|
14,210
|
|
|
$
|
98,239
|
|
|
(85.5
|
)
|
|
$
|
324,435
|
|
|
$
|
176,843
|
|
|
83.5
|
|
Non-GAAP noninterest income, net of noncontrolling interests
|
|
49,535
|
|
|
67,488
|
|
|
(26.6
|
)
|
|
173,042
|
|
|
123,602
|
|
|
40.0
|
|
||||
GAAP taxable equivalent revenue
|
|
$
|
219,602
|
|
|
$
|
268,755
|
|
|
(18.3
|
)
|
|
$
|
726,584
|
|
|
$
|
510,958
|
|
|
42.2
|
|
Non-GAAP taxable equivalent revenue, net of noncontrolling interests
|
|
$
|
254,932
|
|
|
$
|
237,984
|
|
|
7.1
|
|
|
$
|
575,188
|
|
|
$
|
457,673
|
|
|
25.7
|
|
GAAP operating efficiency ratio
|
|
78.98
|
%
|
|
53.32
|
%
|
|
48.1
|
|
|
47.60
|
%
|
|
57.21
|
%
|
|
(16.8
|
)
|
||||
Non-GAAP operating efficiency ratio (1)
|
|
65.97
|
%
|
|
59.01
|
%
|
|
11.8
|
|
|
58.64
|
%
|
|
62.62
|
%
|
|
(6.4
|
)
|
|
(1)
|
The non-GAAP operating efficiency ratio is calculated by dividing non-GAAP noninterest expense by non-GAAP total taxable-equivalent income.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and wages
|
|
$
|
45,157
|
|
|
$
|
39,209
|
|
|
15.2
|
%
|
|
$
|
89,510
|
|
|
$
|
78,532
|
|
|
14.0
|
%
|
Incentive compensation & ESOP
|
|
27,746
|
|
|
21,660
|
|
|
28.1
|
|
|
54,194
|
|
|
43,853
|
|
|
23.6
|
|
||||
Other employee benefits (1)
|
|
26,917
|
|
|
23,873
|
|
|
12.8
|
|
|
58,623
|
|
|
51,061
|
|
|
14.8
|
|
||||
Total compensation and benefits
|
|
$
|
99,820
|
|
|
$
|
84,742
|
|
|
17.8
|
|
|
$
|
202,327
|
|
|
$
|
173,446
|
|
|
16.7
|
|
Period-end full-time equivalent employees
|
|
1,786
|
|
|
1,657
|
|
|
7.8
|
|
|
1,786
|
|
|
1,657
|
|
|
7.8
|
|
||||
Average full-time equivalent employees
|
|
1,768
|
|
|
1,657
|
|
|
6.7
|
|
|
1,751
|
|
|
1,656
|
|
|
5.7
|
|
|
(1)
|
Other employee benefits includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), warrant and retention program plans, agency fees and other employee related expenses.
|
•
|
An increase of
$5.9 million
in salaries and wages expense, primarily due to annual merit increases effective March 2014 and an increase in the number of average FTEs. Average FTEs increased by
111
to
1,768
FTEs for the three months ended
June 30, 2014
, compared to
1,657
FTEs for the comparable 2013 period, primarily to support our product development, operational and sales and advisory teams, as well as to support our commercial banking operations and initiatives.
|
•
|
An increase of
$6.1 million
in incentive compensation and ESOP expense, primarily reflective of our strong performance in the first half of 2014 and an increase in the number of average FTEs compared to the second quarter of 2013.
|
•
|
An increase of
$3.0 million
in other employee benefits, primarily due to an increase in share-based plan expense mainly as a result of the increase in the valuation of our common stock as well as an increase in contract agency fees to support our marketing and commercial banking operations teams.
|
•
|
An increase of
$11.0 million
in salaries and wages expense, primarily due to annual merit increases effective March 2014 and an increase in the number of average FTEs. Average FTEs increased by
95
to
1,751
FTEs for the six months ended
June 30, 2014
, compared to 1,656 FTEs for the comparable 2013 period.
|
•
|
An increase of
$10.3 million
in incentive compensation and ESOP expense, primarily reflective of our strong performance in the first half of 2014 and an increase in the number of average FTEs compared to the first half of 2013.
|
•
|
An increase of
$7.6 million
in other employee benefits, primarily due to an increase in share-based plan expense mainly as a result of the increase in the valuation of our common stock as well as an increase in contract agency fees to support our commercial banking operations and marketing teams. The remaining increases related to various other employee benefits.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Client services
|
|
$
|
2,586
|
|
|
$
|
1,856
|
|
|
39.3
|
%
|
|
$
|
4,945
|
|
|
$
|
3,791
|
|
|
30.4
|
%
|
Tax credit fund amortization
|
|
2,502
|
|
|
1,338
|
|
|
87.0
|
|
|
4,530
|
|
|
2,655
|
|
|
70.6
|
|
||||
Data processing services
|
|
2,041
|
|
|
1,882
|
|
|
8.4
|
|
|
4,268
|
|
|
3,794
|
|
|
12.5
|
|
||||
Telephone
|
|
1,538
|
|
|
1,512
|
|
|
1.7
|
|
|
3,286
|
|
|
3,069
|
|
|
7.1
|
|
||||
Postage and supplies
|
|
716
|
|
|
680
|
|
|
5.3
|
|
|
1,485
|
|
|
1,218
|
|
|
21.9
|
|
||||
Dues and publications
|
|
636
|
|
|
445
|
|
|
42.9
|
|
|
1,133
|
|
|
903
|
|
|
25.5
|
|
||||
Other
|
|
3,108
|
|
|
1,975
|
|
|
57.4
|
|
|
4,670
|
|
|
4,193
|
|
|
11.4
|
|
||||
Total other noninterest expense
|
|
$
|
13,127
|
|
|
$
|
9,688
|
|
|
35.5
|
|
|
$
|
24,317
|
|
|
$
|
19,623
|
|
|
23.9
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Net interest loss (income) (1)
|
|
$
|
5
|
|
|
$
|
(20
|
)
|
|
(125.0
|
)%
|
|
$
|
(3
|
)
|
|
$
|
(44
|
)
|
|
(93.2
|
)%
|
Noninterest loss (income) (1)
|
|
43,961
|
|
|
(31,498
|
)
|
|
NM
|
|
|
(158,177
|
)
|
|
(54,786
|
)
|
|
188.7
|
|
||||
Noninterest expense (1)
|
|
5,267
|
|
|
2,867
|
|
|
83.7
|
|
|
8,588
|
|
|
5,727
|
|
|
50.0
|
|
||||
Carried interest (loss) income (2)
|
|
(8,636
|
)
|
|
747
|
|
|
NM
|
|
|
6,784
|
|
|
1,545
|
|
|
NM
|
|
||||
Net loss (income) attributable to noncontrolling interests
|
|
$
|
40,597
|
|
|
$
|
(27,904
|
)
|
|
NM
|
|
|
$
|
(142,808
|
)
|
|
$
|
(47,558
|
)
|
|
NM
|
|
|
(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.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Net interest income
|
|
$
|
178,488
|
|
|
$
|
154,586
|
|
|
15.5
|
%
|
|
$
|
354,191
|
|
|
$
|
303,522
|
|
|
16.7
|
%
|
Provision for loan losses
|
|
(1,841
|
)
|
|
(18,190
|
)
|
|
(89.9
|
)
|
|
(2,648
|
)
|
|
(24,397
|
)
|
|
(89.1
|
)
|
||||
Noninterest income
|
|
53,021
|
|
|
48,361
|
|
|
9.6
|
|
|
111,658
|
|
|
94,902
|
|
|
17.7
|
|
||||
Noninterest expense
|
|
(123,679
|
)
|
|
(101,246
|
)
|
|
22.2
|
|
|
(245,604
|
)
|
|
(205,585
|
)
|
|
19.5
|
|
||||
Income before income tax expense
|
|
$
|
105,989
|
|
|
$
|
83,511
|
|
|
26.9
|
|
|
$
|
217,597
|
|
|
$
|
168,442
|
|
|
29.2
|
|
Total average loans, net of unearned income
|
|
$
|
9,971,725
|
|
|
$
|
8,203,231
|
|
|
21.6
|
|
|
$
|
9,867,841
|
|
|
$
|
8,036,833
|
|
|
22.8
|
|
Total average assets
|
|
29,218,349
|
|
|
20,442,613
|
|
|
42.9
|
|
|
27,405,141
|
|
|
20,491,451
|
|
|
33.7
|
|
||||
Total average deposits
|
|
26,324,070
|
|
|
18,137,218
|
|
|
45.1
|
|
|
24,610,629
|
|
|
18,219,590
|
|
|
35.1
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
Net interest income
|
|
$
|
9,293
|
|
|
$
|
5,927
|
|
|
56.8
|
%
|
|
$
|
16,185
|
|
|
$
|
12,031
|
|
|
34.5
|
%
|
(Provision for) reduction of loan losses
|
|
(106
|
)
|
|
(382
|
)
|
|
(72.3
|
)
|
|
207
|
|
|
12
|
|
|
NM
|
|
||||
Noninterest income
|
|
356
|
|
|
253
|
|
|
40.7
|
|
|
630
|
|
|
487
|
|
|
29.4
|
|
||||
Noninterest expense
|
|
(2,640
|
)
|
|
(1,848
|
)
|
|
42.9
|
|
|
(5,135
|
)
|
|
(3,779
|
)
|
|
35.9
|
|
||||
Income before income tax expense
|
|
$
|
6,903
|
|
|
$
|
3,950
|
|
|
74.8
|
|
|
$
|
11,887
|
|
|
$
|
8,751
|
|
|
35.8
|
|
Total average loans, net of unearned income
|
|
$
|
1,119,503
|
|
|
$
|
871,746
|
|
|
28.4
|
|
|
$
|
1,084,894
|
|
|
$
|
858,351
|
|
|
26.4
|
|
Total average assets
|
|
985,225
|
|
|
881,298
|
|
|
11.8
|
|
|
974,853
|
|
|
865,777
|
|
|
12.6
|
|
||||
Total average deposits
|
|
791,261
|
|
|
472,613
|
|
|
67.4
|
|
|
768,300
|
|
|
471,648
|
|
|
62.9
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|||||||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
|||||||||
Net interest income
|
|
$
|
29
|
|
|
$
|
3
|
|
|
NM
|
|
|
$
|
43
|
|
|
$
|
4
|
|
|
NM
|
Noninterest (loss) income
|
|
(3,119
|
)
|
|
7,281
|
|
|
(142.8
|
)
|
|
34,553
|
|
|
12,722
|
|
|
171.6
|
||||
Noninterest expense
|
|
(3,144
|
)
|
|
(2,757
|
)
|
|
14.0
|
|
|
(5,779
|
)
|
|
(5,143
|
)
|
|
12.4
|
||||
(Loss) income before income tax expense
|
|
$
|
(6,234
|
)
|
|
$
|
4,527
|
|
|
NM
|
|
|
$
|
28,817
|
|
|
$
|
7,583
|
|
|
NM
|
Total average assets
|
|
$
|
342,924
|
|
|
$
|
269,771
|
|
|
27.1
|
|
|
$
|
342,451
|
|
|
$
|
254,343
|
|
|
34.6
|
|
•
|
Net losses on investment securities of $6.8 million for the three months ended
June 30, 2014
, compared to net gains of $4.2 million for the comparable
2013
period. The net losses on investment securities of $6.8 million for the three months ended
June 30, 2014
were primarily driven by unrealized valuation losses and reductions in carried interest allocations in two of our managed direct venture funds, related to FireEye. These losses were partially offset by gains from our strategic and other investments, which were primarily driven by strong distributions from strategic venture capital fund investments as well as the sale of one of our direct equity investments, for which we recorded a realized gain of $4.7 million.
|
•
|
Fund management fees of
$3.6 million
and $2.9 million for the three months ended
June 30, 2014
and 2013, respectively. Fund management fees increased due to the addition of the Capital Partners III, LP fund in 2014.
|
•
|
Net gains on investment securities of $27.5 million for the
six
months ended
June 30, 2014
, compared to net gains of $7.2 million for the comparable
2013
period. The net gains on investment securities of $27.5 million for the
six
months ended
June 30, 2014
were primarily driven by unrealized valuation increases and carried interest allocations in two of our managed direct venture funds, related to FireEye, as well as unrealized valuation gains from our managed funds of funds and gains from our strategic and other investments, which were primarily driven by strong distributions from strategic venture capital fund investments as well as the sale of one of our direct equity investments, for which we recorded a realized gain of $4.7 million.
|
•
|
Fund management fees of
$6.3 million
for the
six
months ended
June 30, 2014
, compared to
$5.7 million
for the comparable
2013
period. Fund management fees increased due to the addition of the Capital Partners III, LP fund in 2014.
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||
(Dollars in thousands)
|
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG
|
|
Carrying value
(as reported)
|
|
Amount attributable
to SVBFG
|
||||||||
Non-marketable securities (fair value accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments (1)
|
|
$
|
1,040,522
|
|
|
$
|
78,122
|
|
|
$
|
862,972
|
|
|
$
|
76,505
|
|
Other venture capital investments (2)
|
|
43,747
|
|
|
1,941
|
|
|
32,839
|
|
|
2,097
|
|
||||
Other securities (fair value accounting) (3)
|
|
281,639
|
|
|
20,193
|
|
|
321,374
|
|
|
23,058
|
|
||||
Non-marketable securities (equity method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Other investments
|
|
137,845
|
|
|
137,845
|
|
|
142,883
|
|
|
142,883
|
|
||||
Low income housing tax credit funds
|
|
95,395
|
|
|
95,395
|
|
|
72,241
|
|
|
72,241
|
|
||||
Non-marketable securities (cost method accounting):
|
|
|
|
|
|
|
|
|
||||||||
Venture capital and private equity fund investments
|
|
142,136
|
|
|
142,136
|
|
|
148,994
|
|
|
148,994
|
|
||||
Other investments
|
|
15,951
|
|
|
15,951
|
|
|
14,191
|
|
|
14,191
|
|
||||
Total non-marketable and other securities
|
|
$
|
1,757,235
|
|
|
$
|
491,583
|
|
|
$
|
1,595,494
|
|
|
$
|
479,969
|
|
(1)
|
The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at
June 30, 2014
and
December 31, 2013
:
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||
(Dollars in thousands)
|
|
Carrying value
(as reported)
|
|
Amount
attributable
to SVBFG
|
|
Carrying value
(as reported)
|
|
Amount
attributable
to SVBFG
|
||||||||
SVB Strategic Investors Fund, LP
|
|
$
|
27,075
|
|
|
$
|
3,401
|
|
|
$
|
29,104
|
|
|
$
|
3,656
|
|
SVB Strategic Investors Fund II, LP
|
|
92,617
|
|
|
7,939
|
|
|
96,185
|
|
|
8,244
|
|
||||
SVB Strategic Investors Fund III, LP
|
|
257,489
|
|
|
15,117
|
|
|
260,272
|
|
|
15,280
|
|
||||
SVB Strategic Investors Fund IV, LP
|
|
307,600
|
|
|
15,380
|
|
|
226,729
|
|
|
11,337
|
|
||||
Strategic Investors Fund V Funds
|
|
191,024
|
|
|
279
|
|
|
118,181
|
|
|
184
|
|
||||
Strategic Investors Fund VI Funds
|
|
38,879
|
|
|
60
|
|
|
7,944
|
|
|
12
|
|
||||
SVB Capital Preferred Return Fund, LP
|
|
61,573
|
|
|
13,270
|
|
|
59,028
|
|
|
12,722
|
|
||||
SVB Capital—NT Growth Partners, LP
|
|
63,026
|
|
|
22,002
|
|
|
61,126
|
|
|
21,339
|
|
||||
SVB Capital Partners II, LP
|
|
595
|
|
|
30
|
|
|
708
|
|
|
36
|
|
||||
Other private equity fund
|
|
644
|
|
|
644
|
|
|
3,695
|
|
|
3,695
|
|
||||
Total venture capital and private equity fund investments
|
|
$
|
1,040,522
|
|
|
$
|
78,122
|
|
|
$
|
862,972
|
|
|
$
|
76,505
|
|
(2)
|
The following table shows the amounts of other venture capital investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at
June 30, 2014
and
December 31, 2013
:
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||
(Dollars in thousands)
|
|
Carrying value
(as reported)
|
|
Amount
attributable
to SVBFG
|
|
Carrying value
(as reported)
|
|
Amount
attributable
to SVBFG
|
||||||||
Silicon Valley BancVentures, LP
|
|
$
|
6,177
|
|
|
$
|
661
|
|
|
$
|
6,564
|
|
|
$
|
702
|
|
SVB Capital Partners II, LP
|
|
18,471
|
|
|
938
|
|
|
22,684
|
|
|
1,152
|
|
||||
Capital Partners III, LP
|
|
15,000
|
|
|
65
|
|
|
—
|
|
|
—
|
|
||||
SVB Capital Shanghai Yangpu Venture Capital Fund
|
|
4,099
|
|
|
277
|
|
|
3,591
|
|
|
243
|
|
||||
Total other venture capital investments
|
|
$
|
43,747
|
|
|
$
|
1,941
|
|
|
$
|
32,839
|
|
|
$
|
2,097
|
|
(3)
|
Investments classified as other securities (fair value accounting) represent direct equity investments in public companies held by our consolidated funds. At June 30, 2014, the amount primarily includes total unrealized gains of
$193.9 million
in one public company, FireEye. The extent to which any unrealized gains (or losses) will become realized is subject to a variety of factors, including among other things, changes in prevailing market prices and the timing of any sales or distribution of securities, which are subject to our securities sales and governance processes and may also be constrained by lock-up agreements. None of the FireEye related investments currently are subject to a lock-up agreement.
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
||||||
Software
|
|
$
|
4,250,824
|
|
|
37.2
|
%
|
|
$
|
4,141,358
|
|
|
37.7
|
%
|
Hardware
|
|
1,154,639
|
|
|
10.1
|
|
|
1,224,480
|
|
|
11.1
|
|
||
Venture capital/private equity
|
|
2,670,600
|
|
|
23.3
|
|
|
2,408,426
|
|
|
21.9
|
|
||
Life science
|
|
1,176,928
|
|
|
10.3
|
|
|
1,181,266
|
|
|
10.7
|
|
||
Premium wine
|
|
176,441
|
|
|
1.5
|
|
|
151,255
|
|
|
1.4
|
|
||
Other
|
|
247,159
|
|
|
2.1
|
|
|
291,630
|
|
|
2.7
|
|
||
Total commercial loans
|
|
9,676,591
|
|
|
84.5
|
|
|
9,398,415
|
|
|
85.5
|
|
||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
||||||
Premium wine
|
|
547,674
|
|
|
4.8
|
|
|
515,942
|
|
|
4.7
|
|
||
Consumer
|
|
984,197
|
|
|
8.6
|
|
|
873,070
|
|
|
7.9
|
|
||
Other
|
|
30,633
|
|
|
0.3
|
|
|
31,033
|
|
|
0.3
|
|
||
Total real estate secured loans
|
|
1,562,504
|
|
|
13.7
|
|
|
1,420,045
|
|
|
12.9
|
|
||
Construction loans
|
|
76,389
|
|
|
0.7
|
|
|
77,165
|
|
|
0.7
|
|
||
Consumer loans
|
|
121,816
|
|
|
1.1
|
|
|
99,643
|
|
|
0.9
|
|
||
Total gross loans
|
|
$
|
11,437,300
|
|
|
100.0
|
|
|
$
|
10,995,268
|
|
|
100.0
|
|
|
|
June 30, 2014
|
||||||||||||||||||||||
(Dollars in thousands)
|
|
Less than
Five Million
|
|
Five to Ten
Million
|
|
Ten to Twenty
Million
|
|
Twenty to Thirty Million
|
|
Thirty Million
or More
|
|
Total
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software
|
|
$
|
1,112,014
|
|
|
$
|
674,464
|
|
|
$
|
974,576
|
|
|
$
|
964,586
|
|
|
$
|
525,184
|
|
|
$
|
4,250,824
|
|
Hardware
|
|
233,347
|
|
|
178,221
|
|
|
258,831
|
|
|
221,183
|
|
|
263,057
|
|
|
1,154,639
|
|
||||||
Venture capital/private equity
|
|
381,529
|
|
|
374,730
|
|
|
627,605
|
|
|
267,241
|
|
|
1,019,495
|
|
|
2,670,600
|
|
||||||
Life science
|
|
319,943
|
|
|
275,492
|
|
|
245,339
|
|
|
143,492
|
|
|
192,662
|
|
|
1,176,928
|
|
||||||
Premium wine (1)
|
|
77,825
|
|
|
42,887
|
|
|
16,576
|
|
|
39,153
|
|
|
—
|
|
|
176,441
|
|
||||||
Other
|
|
125,167
|
|
|
31,935
|
|
|
32,371
|
|
|
22,929
|
|
|
34,757
|
|
|
247,159
|
|
||||||
Commercial loans
|
|
2,249,825
|
|
|
1,577,729
|
|
|
2,155,298
|
|
|
1,658,584
|
|
|
2,035,155
|
|
|
9,676,591
|
|
||||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premium wine (1)
|
|
144,994
|
|
|
155,791
|
|
|
157,752
|
|
|
58,897
|
|
|
30,240
|
|
|
547,674
|
|
||||||
Consumer (2)
|
|
850,195
|
|
|
104,220
|
|
|
9,782
|
|
|
20,000
|
|
|
—
|
|
|
984,197
|
|
||||||
Other
|
|
2,500
|
|
|
5,000
|
|
|
—
|
|
|
23,133
|
|
|
—
|
|
|
30,633
|
|
||||||
Real estate secured loans
|
|
997,689
|
|
|
265,011
|
|
|
167,534
|
|
|
102,030
|
|
|
30,240
|
|
|
1,562,504
|
|
||||||
Construction loans
|
|
11,285
|
|
|
41,646
|
|
|
23,458
|
|
|
—
|
|
|
—
|
|
|
76,389
|
|
||||||
Consumer loans (2)
|
|
64,451
|
|
|
21,827
|
|
|
420
|
|
|
3,118
|
|
|
32,000
|
|
|
121,816
|
|
||||||
Total gross loans
|
|
$
|
3,323,250
|
|
|
$
|
1,906,213
|
|
|
$
|
2,346,710
|
|
|
$
|
1,763,732
|
|
|
$
|
2,097,395
|
|
|
$
|
11,437,300
|
|
|
(1)
|
Premium wine clients can have loan balances included in both commercial loans and real estate secured loans, the total of which are used for the breakout of the above categories.
|
(2)
|
Consumer loan clients have loan balances included in both real estate secured loans and other consumer loans, the total of which are used for the breakout of the above categories.
|
|
|
December 31, 2013
|
||||||||||||||||||||||
(Dollars in thousands)
|
|
Less than
Five Million
|
|
Five to Ten
Million
|
|
Ten to Twenty
Million
|
|
Twenty to Thirty Million
|
|
Thirty Million
or More
|
|
Total
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software
|
|
$
|
1,031,179
|
|
|
$
|
647,060
|
|
|
$
|
905,815
|
|
|
$
|
832,375
|
|
|
$
|
724,929
|
|
|
$
|
4,141,358
|
|
Hardware
|
|
280,794
|
|
|
205,705
|
|
|
187,140
|
|
|
235,973
|
|
|
314,868
|
|
|
1,224,480
|
|
||||||
Venture capital/private equity
|
|
328,073
|
|
|
248,787
|
|
|
371,980
|
|
|
201,193
|
|
|
1,258,393
|
|
|
2,408,426
|
|
||||||
Life science
|
|
332,991
|
|
|
262,420
|
|
|
249,749
|
|
|
122,426
|
|
|
213,680
|
|
|
1,181,266
|
|
||||||
Premium wine (1)
|
|
77,431
|
|
|
24,667
|
|
|
24,810
|
|
|
24,347
|
|
|
—
|
|
|
151,255
|
|
||||||
Other
|
|
131,351
|
|
|
48,698
|
|
|
—
|
|
|
76,581
|
|
|
35,000
|
|
|
291,630
|
|
||||||
Commercial loans
|
|
2,181,819
|
|
|
1,437,337
|
|
|
1,739,494
|
|
|
1,492,895
|
|
|
2,546,870
|
|
|
9,398,415
|
|
||||||
Real estate secured loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premium wine (1)
|
|
136,748
|
|
|
128,291
|
|
|
146,439
|
|
|
73,594
|
|
|
30,870
|
|
|
515,942
|
|
||||||
Consumer loans (2)
|
|
760,693
|
|
|
82,545
|
|
|
9,832
|
|
|
20,000
|
|
|
—
|
|
|
873,070
|
|
||||||
Other
|
|
2,500
|
|
|
5,000
|
|
|
—
|
|
|
23,533
|
|
|
—
|
|
|
31,033
|
|
||||||
Real estate secured loans
|
|
899,941
|
|
|
215,836
|
|
|
156,271
|
|
|
117,127
|
|
|
30,870
|
|
|
1,420,045
|
|
||||||
Construction loans
|
|
16,432
|
|
|
48,359
|
|
|
12,374
|
|
|
—
|
|
|
—
|
|
|
77,165
|
|
||||||
Consumer loans (2)
|
|
46,019
|
|
|
20,022
|
|
|
600
|
|
|
3,003
|
|
|
29,999
|
|
|
99,643
|
|
||||||
Total gross loans
|
|
$
|
3,144,211
|
|
|
$
|
1,721,554
|
|
|
$
|
1,908,739
|
|
|
$
|
1,613,025
|
|
|
$
|
2,607,739
|
|
|
$
|
10,995,268
|
|
|
(1)
|
Premium wine clients can have loan balances included in both commercial loans and real estate secured loans, the total of which are used for the breakout of the above categories.
|
(2)
|
Consumer loan clients have loan balances included in both real estate secured loans and other consumer loans, the total of which are used for the breakout of the above categories.
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Gross nonperforming, past due, and restructured loans:
|
|
|
|
|
||||
Impaired loans
|
|
$
|
22,346
|
|
|
$
|
51,649
|
|
Loans past due 90 days or more still accruing interest
|
|
93
|
|
|
99
|
|
||
Total nonperforming loans
|
|
22,439
|
|
|
51,748
|
|
||
OREO and other foreclosed assets
|
|
1,745
|
|
|
1,001
|
|
||
Total nonperforming assets
|
|
$
|
24,184
|
|
|
$
|
52,749
|
|
Performing TDRs
|
|
$
|
1,132
|
|
|
$
|
403
|
|
Nonperforming loans as a percentage of total gross loans
|
|
0.20
|
%
|
|
0.47
|
%
|
||
Nonperforming assets as a percentage of total assets
|
|
0.07
|
|
|
0.20
|
|
||
Allowance for loan losses
|
|
$
|
120,728
|
|
|
$
|
142,886
|
|
As a percentage of total gross loans
|
|
1.06
|
%
|
|
1.30
|
%
|
||
As a percentage of total gross nonperforming loans
|
|
538.03
|
|
|
276.12
|
|
||
Allowance for loan losses for impaired loans
|
|
$
|
4,681
|
|
|
$
|
21,277
|
|
As a percentage of total gross loans
|
|
0.04
|
%
|
|
0.19
|
%
|
||
As a percentage of total gross nonperforming loans
|
|
20.86
|
|
|
41.12
|
|
||
Allowance for loan losses for total gross performing loans
|
|
$
|
116,047
|
|
|
$
|
121,609
|
|
As a percentage of total gross loans
|
|
1.01
|
%
|
|
1.11
|
%
|
||
As a percentage of total gross performing loans
|
|
1.02
|
|
|
1.11
|
|
||
Total gross loans
|
|
$
|
11,437,300
|
|
|
$
|
10,995,268
|
|
Total gross performing loans
|
|
11,414,861
|
|
|
10,943,520
|
|
||
Reserve for unfunded credit commitments (1)
|
|
33,319
|
|
|
29,983
|
|
||
As a percentage of total unfunded credit commitments
|
|
0.25
|
%
|
|
0.26
|
%
|
||
Total unfunded credit commitments (2)
|
|
$
|
13,569,982
|
|
|
$
|
11,470,722
|
|
|
(1)
|
The “Reserve for unfunded credit commitments” is included as a component of other liabilities. See “Provision for Unfunded Credit Commitments” above for a discussion of the changes to the reserve.
|
(2)
|
Includes unfunded loan commitments and letters of credit.
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
|
% Change
|
|||||
Derivative assets, gross (1)
|
|
$
|
107,979
|
|
|
$
|
127,114
|
|
|
(15.1
|
)%
|
Foreign exchange spot contract assets, gross
|
|
136,823
|
|
|
73,423
|
|
|
86.3
|
|
||
Accrued interest receivable
|
|
79,135
|
|
|
67,772
|
|
|
16.8
|
|
||
FHLB and Federal Reserve Bank stock
|
|
41,026
|
|
|
40,632
|
|
|
1.0
|
|
||
Accounts receivable
|
|
18,447
|
|
|
15,773
|
|
|
17.0
|
|
||
Deferred tax assets
|
|
—
|
|
|
68,237
|
|
|
(100.0
|
)
|
||
Other assets
|
|
82,382
|
|
|
72,159
|
|
|
14.2
|
|
||
Total accrued interest receivable and other assets
|
|
$
|
465,792
|
|
|
$
|
465,110
|
|
|
0.1
|
|
|
(1)
|
See “Derivatives” section below.
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
|
% Change
|
|||||
Assets:
|
|
|
|
|
|
|
|||||
Equity warrant assets
|
|
$
|
88,905
|
|
|
$
|
103,513
|
|
|
(14.1
|
)%
|
Foreign exchange forward and option contracts
|
|
11,090
|
|
|
15,530
|
|
|
(28.6
|
)
|
||
Interest rate swaps
|
|
5,692
|
|
|
6,492
|
|
|
(12.3
|
)
|
||
Loan conversion options
|
|
53
|
|
|
314
|
|
|
(83.1
|
)
|
||
Client interest rate derivatives
|
|
2,239
|
|
|
1,265
|
|
|
77.0
|
|
||
Total derivative assets
|
|
$
|
107,979
|
|
|
$
|
127,114
|
|
|
(15.1
|
)
|
Liabilities:
|
|
|
|
|
|
|
|||||
Foreign exchange forward and option contracts
|
|
$
|
(10,744
|
)
|
|
$
|
(12,617
|
)
|
|
(14.8
|
)
|
Client interest rate derivatives
|
|
(2,420
|
)
|
|
(1,396
|
)
|
|
73.4
|
|
||
Total derivative liabilities
|
|
$
|
(13,164
|
)
|
|
$
|
(14,013
|
)
|
|
(6.1
|
)
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Balance, beginning of period
|
|
$
|
91,135
|
|
|
$
|
72,333
|
|
|
$
|
103,513
|
|
|
$
|
74,272
|
|
New equity warrant assets
|
|
3,352
|
|
|
3,941
|
|
|
7,431
|
|
|
6,444
|
|
||||
Non-cash increases in fair value
|
|
9,774
|
|
|
5,697
|
|
|
16,832
|
|
|
8,492
|
|
||||
Exercised equity warrant assets (1)
|
|
(14,927
|
)
|
|
(5,269
|
)
|
|
(38,355
|
)
|
|
(12,402
|
)
|
||||
Terminated equity warrant assets
|
|
(429
|
)
|
|
(118
|
)
|
|
(516
|
)
|
|
(222
|
)
|
||||
Balance, end of period
|
|
$
|
88,905
|
|
|
$
|
76,584
|
|
|
$
|
88,905
|
|
|
$
|
76,584
|
|
|
(Dollars in thousands)
|
|
June 30, 2014
|
|
December 31, 2013
|
|
% Change
|
|||||
Foreign exchange spot contract liabilities, gross
|
|
$
|
273,702
|
|
|
$
|
90,725
|
|
|
201.7
|
%
|
Accrued compensation
|
|
68,286
|
|
|
117,134
|
|
|
(41.7
|
)
|
||
Reserve for unfunded credit commitments
|
|
33,319
|
|
|
29,983
|
|
|
11.1
|
|
||
Derivative liabilities, gross (1)
|
|
13,164
|
|
|
14,013
|
|
|
(6.1
|
)
|
||
Net deferred tax liabilities
|
|
3,891
|
|
|
—
|
|
|
—
|
|
||
Other
|
|
166,711
|
|
|
152,731
|
|
|
9.2
|
|
||
Total other liabilities
|
|
$
|
559,073
|
|
|
$
|
404,586
|
|
|
38.2
|
|
|
(1)
|
See “Derivatives” section above.
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||
(Dollars in thousands)
|
|
Total Balance
|
|
Level 3
|
|
Total Balance
|
|
Level 3
|
||||||||
Assets carried at fair value
|
|
$
|
13,146,677
|
|
|
$
|
1,177,228
|
|
|
$
|
13,331,120
|
|
|
$
|
1,314,951
|
|
As a percentage of total assets
|
|
39.5
|
%
|
|
3.5
|
%
|
|
50.5
|
%
|
|
5.0
|
%
|
||||
Liabilities carried at fair value
|
|
$
|
13,164
|
|
|
$
|
—
|
|
|
$
|
14,013
|
|
|
$
|
—
|
|
As a percentage of total liabilities
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
—
|
%
|
||||
|
|
Level 1 and 2
|
|
Level 3
|
|
Level 1 and 2
|
|
Level 3
|
||||||||
Percentage of assets measured at fair value
|
|
91.0
|
%
|
|
9.0
|
%
|
|
90.1
|
%
|
|
9.9
|
%
|
|
|
June 30, 2014
|
|
December 31, 2013
|
|
Minimum ratio to be
“Well Capitalized”
|
|
Minimum ratio to be
“Adequately Capitalized”
|
||||
SVB Financial:
|
|
|
|
|
|
|
|
|
||||
Total risk-based capital ratio
|
|
15.36
|
%
|
|
13.13
|
%
|
|
10.0
|
%
|
|
8.0
|
%
|
Tier 1 risk-based capital ratio
|
|
14.42
|
|
|
11.94
|
|
|
6.0
|
|
|
4.0
|
|
Tier 1 leverage ratio
|
|
8.74
|
|
|
8.31
|
|
|
N/A
|
|
|
4.0
|
|
Tangible common equity to tangible assets ratio (1)(2)
|
|
8.03
|
|
|
7.44
|
|
|
N/A
|
|
|
N/A
|
|
Tangible common equity to risk-weighted assets ratio (1)(2)
|
|
14.52
|
|
|
11.63
|
|
|
N/A
|
|
|
N/A
|
|
Bank:
|
|
|
|
|
|
|
|
|
||||
Total risk-based capital ratio
|
|
13.41
|
%
|
|
11.32
|
%
|
|
10.0
|
%
|
|
8.0
|
%
|
Tier 1 risk-based capital ratio
|
|
12.45
|
|
|
10.11
|
|
|
6.0
|
|
|
4.0
|
|
Tier 1 leverage ratio
|
|
7.51
|
|
|
7.04
|
|
|
5.0
|
|
|
4.0
|
|
Tangible common equity to tangible assets ratio (1)(2)
|
|
7.22
|
|
|
6.59
|
|
|
N/A
|
|
|
N/A
|
|
Tangible common equity to risk-weighted assets ratio (1)(2)
|
|
12.65
|
|
|
9.87
|
|
|
N/A
|
|
|
N/A
|
|
|
(1)
|
See below for a reconciliation of non-GAAP tangible common equity to tangible assets and tangible common equity to risk-weighted assets.
|
(2)
|
The Federal Reserve Bank has not issued any minimum guidelines for the tangible common equity to tangible assets ratio or the tangible common equity to risk-weighted assets ratio. However, we believe these ratios provide meaningful supplemental information regarding our capital levels and are therefore provided above.
|
|
|
SVB Financial
|
|
Bank
|
||||||||||||
Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios)
|
|
June 30,
2014 |
|
December 31,
2013 |
|
June 30,
2014 |
|
December 31,
2013 |
||||||||
GAAP SVBFG stockholders’ equity
|
|
$
|
2,675,739
|
|
|
$
|
1,966,270
|
|
|
$
|
2,284,663
|
|
|
$
|
1,639,024
|
|
Less:
|
|
|
|
|
|
|
|
|
||||||||
Intangible assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tangible common equity
|
|
$
|
2,675,739
|
|
|
$
|
1,966,270
|
|
|
$
|
2,284,663
|
|
|
$
|
1,639,024
|
|
GAAP Total assets
|
|
$
|
33,309,016
|
|
|
$
|
26,417,189
|
|
|
$
|
31,634,882
|
|
|
$
|
24,854,119
|
|
Less:
|
|
|
|
|
|
|
|
|
||||||||
Intangible assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tangible assets
|
|
$
|
33,309,016
|
|
|
$
|
26,417,189
|
|
|
$
|
31,634,882
|
|
|
$
|
24,854,119
|
|
Risk-weighted assets
|
|
$
|
18,429,007
|
|
|
$
|
16,901,501
|
|
|
$
|
18,059,726
|
|
|
$
|
16,612,870
|
|
Tangible common equity to tangible assets
|
|
8.03
|
%
|
|
7.44
|
%
|
|
7.22
|
%
|
|
6.59
|
%
|
||||
Tangible common equity to risk-weighted assets
|
|
14.52
|
|
|
11.63
|
|
|
12.65
|
|
|
9.87
|
|
|
|
Six months ended June 30,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
||||
Average cash and cash equivalents
|
|
$
|
3,010,077
|
|
|
$
|
1,047,091
|
|
Percentage of total average assets
|
|
10.1
|
%
|
|
4.7
|
%
|
||
Net cash provided by operating activities
|
|
$
|
201,267
|
|
|
$
|
32,986
|
|
Net cash (used for) provided by investing activities
|
|
(5,429,080
|
)
|
|
441,320
|
|
||
Net cash provided by (used for) financing activities
|
|
6,338,865
|
|
|
(610,038
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
$
|
1,111,052
|
|
|
$
|
(135,732
|
)
|
|
|
Estimated
|
|
Estimated Increase In EVE
|
|
Estimated
|
|
Estimated Increase/
(Decrease) In NII
|
||||||||||||||
Change in interest rates (basis points)
|
|
EVE
|
|
Amount
|
|
Percent
|
|
NII
|
|
Amount
|
|
Percent
|
||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||||
June 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
+200
|
|
$
|
5,839,526
|
|
|
$
|
900,786
|
|
|
18.2
|
%
|
|
$
|
1,040,553
|
|
|
$
|
170,427
|
|
|
19.6
|
%
|
+100
|
|
5,381,053
|
|
|
442,313
|
|
|
9.0
|
|
|
947,475
|
|
|
77,349
|
|
|
8.9
|
|
||||
—
|
|
4,938,740
|
|
|
—
|
|
|
—
|
|
|
870,126
|
|
|
—
|
|
|
—
|
|
||||
-100
|
|
4,672,693
|
|
|
(266,047
|
)
|
|
(5.4
|
)
|
|
844,680
|
|
|
(25,446
|
)
|
|
(2.9
|
)
|
||||
-200
|
|
4,839,644
|
|
|
(99,096
|
)
|
|
(2.0
|
)
|
|
819,986
|
|
|
(50,140
|
)
|
|
(5.8
|
)
|
||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
+200
|
|
$
|
4,656,411
|
|
|
$
|
477,866
|
|
|
11.4
|
%
|
|
$
|
990,190
|
|
|
$
|
161,314
|
|
|
19.5
|
%
|
+100
|
|
4,382,397
|
|
|
203,852
|
|
|
4.9
|
|
|
899,336
|
|
|
70,460
|
|
|
8.5
|
|
||||
—
|
|
4,178,545
|
|
|
—
|
|
|
—
|
|
|
828,876
|
|
|
—
|
|
|
—
|
|
||||
-100
|
|
3,960,086
|
|
|
(218,459
|
)
|
|
(5.2
|
)
|
|
826,222
|
|
|
(2,654
|
)
|
|
(0.3
|
)
|
||||
-200
|
|
4,041,604
|
|
|
(136,941
|
)
|
|
(3.3
|
)
|
|
822,448
|
|
|
(6,428
|
)
|
|
(0.8
|
)
|
|
|
SVB Financial Group
|
|
|
|
Date: August 8, 2014
|
|
/s/ MICHAEL DESCHENEAUX
|
|
|
Michael Descheneaux
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
SVB Financial Group
|
|
|
|
Date: August 8, 2014
|
|
/s/ KAMRAN HUSAIN
|
|
|
Kamran Husain
|
|
|
Chief Accounting Officer
|
|
|
(Principal Accounting Officer)
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|||||
3.1
|
|
Restated Certificate of Incorporation
|
|
8-K
|
|
000-15637
|
|
3.1
|
|
May 31, 2005
|
|
|
3.2
|
|
Amended and Restated Bylaws
|
|
8-K
|
|
000-15637
|
|
3.2
|
|
July 27, 2010
|
|
|
3.3
|
|
Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Preferred Stock
|
|
8-K
|
|
000-15637
|
|
3.3
|
|
December 8, 2008
|
|
|
3.4
|
|
Certificate of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series B
|
|
8-K
|
|
000-15637
|
|
3.4
|
|
December 15, 2008
|
|
|
4.1
|
|
Junior Subordinated Indenture, dated as of October 30, 2003 between SVB Financial and Wilmington Trust Company, as trustee
|
|
8-K
|
|
000-15637
|
|
4.12
|
|
November 19, 2003
|
|
|
4.2
|
|
7.0% Junior Subordinated Deferrable Interest Debenture due October 15, 2033 of SVB Financial
|
|
8-K
|
|
000-15637
|
|
4.13
|
|
November 19, 2003
|
|
|
4.3
|
|
Amended and Restated Trust Agreement, dated as of October 30, 2003, by and among SVB Financial as Depositor, Wilmington Trust Company as Property Trustee, Wilmington Trust Company as Delaware Trustee, and the Administrative Trustees named therein
|
|
8-K
|
|
000-15637
|
|
4.14
|
|
November 19, 2003
|
|
|
4.4
|
|
Certificate Evidencing 7% Cumulative Trust Preferred Securities of SVB Capital II, dated as of October 30, 2003
|
|
8-K
|
|
000-15637
|
|
4.15
|
|
November 19, 2003
|
|
|
4.5
|
|
Guarantee Agreement, dated as of October 30, 2003, between SVB Financial and Wilmington Trust Company, as Trustee
|
|
8-K
|
|
000-15637
|
|
4.16
|
|
November 19, 2003
|
|
|
4.6
|
|
Agreement as to Expenses and Liabilities, dated as of October 30, 2003, between SVB Financial and SVB Capital II
|
|
8-K
|
|
000-15637
|
|
4.17
|
|
November 19, 2003
|
|
|
4.7
|
|
Certificate Evidencing 7% Common Securities of SVB Capital II, dated as of October 30, 2003
|
|
8-K
|
|
000-15637
|
|
4.18
|
|
November 19, 2003
|
|
|
4.8
|
|
Officers’ Certificate and Company Order, dated as of October 30, 2003, relating to the 7.0% Junior Subordinated Deferrable Interest Debentures due October 15, 2033
|
|
8-K
|
|
000-15637
|
|
4.19
|
|
November 19, 2003
|
|
|
4.9
|
|
Indenture, dated September 20, 2010, by and between SVB Financial Group and U.S. Bank National Association, as trustee
|
|
8-K
|
|
000-15637
|
|
4.1
|
|
September 20, 2010
|
|
|
4.10
|
|
Form of 5.375% Senior Note due 2020
|
|
8-K
|
|
000-15637
|
|
4.2
|
|
September 20, 2010
|
|
|
*10.1
|
|
Amended and Restated Deferred Compensation Plan
|
|
|
|
|
|
|
|
|
|
X
|
31.1
|
|
Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Executive Officer
|
|
|
|
|
|
|
|
|
|
X
|
31.2
|
|
Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Financial Officer
|
|
|
|
|
|
|
|
|
|
X
|
32.1
|
|
Section 1350 Certifications
|
|
|
|
|
|
|
|
|
|
**
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
*
|
Denotes management contract or any compensatory plan, contract or arrangement
|
**
|
Furnished herewith
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Apartment Investment and Management Company | AIV |
Equity Residential | EQR |
No Suppliers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|