Document





UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): May 4, 2018


SVB Financial Group
(Exact name of registrant as specified in its charter)
Delaware
 
000-15637
 
91-1962278
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)


3003 Tasman Drive, Santa Clara, CA 95054-1191
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code: (408) 654-7400
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.142-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o








Item 7.01    Regulation FD Disclosure.
Over the upcoming weeks, members of management will be presenting to or conducting one-on-one meetings with investors, analysts or other third parties about SVB Financial Group (the “Company”) and its latest financial results. A copy of the presentation slides, updated with the Company’s financial results for the first quarter of 2018, substantially in the form expected to be used in such presentations and meetings, is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information contained in this report and in the exhibit hereto is intended to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item 9.01    Financial Statements and Exhibits.

(d)
Exhibits.

Exhibit No.
Description














SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



Date: May 4, 2018
 
 
 
SVB FINANCIAL GROUP
 
 
 
 
 
 
 
 
By:
 
/s/ Kamran Husain
 
 
 
 
Name:
 
Kamran Husain
 
 
 
 
Title:
 
Chief Accounting Officer and Principal Accounting Officer





q118irpresentation542018
Q1 2018 Corporate Overview and Financial Results May 4, 2018


 
The following termsareusedthroughoutthispresentationtoreferSVB-specific tocertain metrics: 40 Contents andGlossary 36 38 35 37 4 8 3 Fixed Income Securities • Total Client Funds – • Core Fee Income – • Q1 2018 maturity ("HTM") securities heldonthebalance sheet. ("HTM") securities maturity investment funds. Please seenon-GAAPreconciliations attheendofthis presentationfor moreinformation. charges, foreign exchange andlending-related fees, inaggregate. This isanon-GAAPmeasure. Non-GAAP reconciliations Capital environment Regulatory Interest ratesensitivity Outlook for 2018 Financial performance About SVB non-GAAP financialmeasures informationImportant regardingforward-lookingstatements and useof Corporate and Financial Results Overview fees clientinvestments, creditcards,depositservice fromlettersofcredit, the sumofon-balance sheetdeposits andoff-balance sheetclient – May 4, 2018 Comprised primarily ofavailable-for-sale ("AFS") primarily Comprised andheld-to- 2 SVB20144:3


 
non-GAAP calculation ofthefinancial measure. Pleasereferto that sectionformore information. provided reconciliations of,whereapplicable,the most comparableGAAP financialmeasurestothenon-GAAP financialmeasures usedinthispresentation, orareconciliationofthe superior to,netincome orotherfinancialmeasures preparedinaccordancewithGAAP. Underthe“Non-GAAP reconciliations” sectionattheendofthispresentation, wehave other interestedparties intheevaluationofcompanies inourindustry. However, thesenon-GAAP financialmeasuresshould beconsideredinadditionto, notasasubstituteforor non-GAAP financialmeasures alsofacilitateacomparisonofourperformancetopriorperiods. We believethesemeasuresarefrequentlyused bysecuritiesanalysts,investorsand that investorsbenefitfromreferring to,thesenon-GAAP financialmeasuresinassessing ouroperatingresultsandwhenplanning,forecastinganalyzing futureperiods. These indicated, or(ii) providingadditional informationusedbymanagementthatisnototherwiserequired byGAAP orotherapplicablerequirements.Ourmanagement uses,andbelieves information regardingourperformance by:(i) excludingamountsattributabletonon-controllinginterests forwhichweeffectively donotreceivetheeconomic benefitorcostof,where We believethatthese non-GAAP financialmeasures,whentakentogether withthecorrespondingGAAP financialmeasures(asapplicable), providemeaningfulsupplemental   presented inaccordancewithGAAP. A non-GAAP financialmeasuremayalsobeametricthatisnotrequiredbyGAAP orotherapplicablerequirement. measure ofacompany’sperformancethateitherexcludesorincludes amountsthatarenotnormallyexcludedorincludedinthemostdirectlycomparablemeasurecalculatedand by othercompaniesinourindustry. Non-GAAP financialmeasuresarenotinaccordancewith,oranalternativefor, GAAP. Generally, anon-GAAP financial measureisanumerical expense andnon-GAAP financialratios)ofperformance. These supplementalperformancemeasures mayvaryfrom,andnotbecomparableto,similarlytitledmeasures GAAP corefeeincome,non-GAAP noninterestincome,non-GAAP netgainsoninvestmentsecurities,non-GAAP non-marketableandothersecurities,non-GAAP noninterest To supplementourfinancialdisclosuresthatarepresentedinaccordance withGAAP, weusecertain non-GAAP measuresoffinancialperformance(including, butnotlimitedto,non-   Use ofNon-GAAP FinancialMeasures   This presentationshallnotconstituteanoffer orsolicitationinconnectionwithanysecurities.   as requiredbylaw. are madeonlyasofthedatethispresentation.We assumenoobligationanddonotintendtoreviseorupdateanyforward-looking statementscontainedinthispresentation,except Company’s actualresultstodiffer materiallyfromthosecontainedinourprojectionsorotherforward-lookingstatements. All forward-lookingstatementsincludedinthispresentation Quarterly ReportonForm10-Q;and(iii)ourmostrecentearningsreleasefiled8-K. Thesedocumentscontainidentify important riskfactorsthatcouldcausethe We referyoutothedocumentsCompanyfilesfrom time towiththeSecuritiesandExchangeCommission,including(i)ourlatest Annual ReportonForm10-K;(ii)ourlatest   required byGenerally Accepted Accounting Principles(GAAP);andregulatory, taxorlegalchangestheirimpactonus. liquidity ofourclientsorunanticipatedeffects ofcreditconcentration riskswhichcreateorexacerbatedeteriorationofsuchcreditworthinessliquidity;accountingchanges,as hold derivativeinstrumentsorequitywarrantassets;variationsfromourexpectationsastofactorsimpactingcoststructure;changes inourassessmentofthecreditworthinessor especially onourloanandinvestmentportfolios;changesindepositlevels;theperformanceorequityvaluationsoffunds orcompaniesinwhichwehaveinvested of IPOsandM&A activities);changesinthevolumeandcreditqualityofour loans;theimpactofchangesininterestratesormarketlevelsfactorsaffecting oraffected bythem, deterioration, weakerthanexpectedimprovement,orotherchangesinthestateofeconomymarketswhichweconduct businessorareservedbyus(includingthelevels Important factorsthatcouldcauseouractualresultsandfinancialconditiontodiffer fromtheexpectationsstatedinforward-lookingstatementsinclude,amongothers: trends. Ouractualresultsofoperationsandfinancialperformancecoulddiffer significantlyfromthoseexpressedinorimpliedbyourmanagement’sforward-lookingstatements. We wishtocautionyouthatsuchstatementsarejustpredictions andactualeventsorresultsmaydiffer materially, duetochangesineconomic,businessandregulatoryfactors   these expectationsonourcurrentbeliefsaswellassumptions,andsuchmayprovetobeincorrect. such results)forcertainquartersin,andthefullyear2018. Although we believethattheexpectationsreflectedintheseforward-lookingstatementsarereasonable,wehavebased including potentialinvestmentgains,loangrowth,mix,yields,creditquality, deposits,noninterestincome,andexpenselevels;financialresults(andthecomponentsof expectations about,amongotherthings:economicconditions;opportunitiesinthemarket;outlookonourclients'performance;financial, credit,andbusinessperformance, “seek,” “expect,”“plan,”“inten Important information Q1 2018 Corporate andFinancialResults Overview May 4,2018 "could, would,“predict,”“potential,”“continue,”“anticipate,”“believe,”“estimate,” You canidentifytheseand 3 SVB 2014 4:3


 
SVB: A unique financial services company 35 years of focus on innovation companies, investors and influencers Strong market position Robust client funds franchise Diversified revenue streams $52.4B assets Global presence $23.8B loans $110.5B total client funds Average balances for Q1'18 Q1 2018 Corporate Overview and Financial Results May 4, 2018 4


 
(Early Stage) Accelerator Revenue <$5M Q1 2018 Corporate and Financial Results Overview Technology +LifeHealthcare Sciences $5M-$75M Growth Revenue May 4, 2018 Innovation Economy We serve theglobal Corp Fin Corp Revenue >$75M Venture Capital Private Equity Investors Wealth Management Individuals Private Bank 5 SVB20144:3


 
Serving innovative companies and the investors and individuals behind them Silicon Valley Bank SVB Capital SVB Private Bank/ Global commercial banking Private venture investing Wealth Advisory for innovators, enterprises expertise, oversight Private banking and investment and investors and fund management strategies for influencers in the innovation ecosystem Q1 2018 Corporate Overview and Financial Results May 4, 2018 6


 
A strong, seasoned management team • • Q1 2018 Corporate andFinancialResults Overview Diverse experience andskillsets to helpdirectourgrowth Average tenureof11years atSVB 2 years atSVB CHIEF RISKOFFICER Laura Izurieta 5 years atSVB CHIEF MARKETINGOFFICER Michelle Draper 22 years atSVB HEAD OFTECHNOLOGY BANKING John China 1 year atSVB CHIEF FINANCIALOFFICER Dan Beck May 4,2018 3 years atSVB CHIEF INFORMATION OFFICER Roger Leone 2 years atSVB CHIEF OPERATIONS OFFICER Mike Dreyer 9 years atSVB PRESIDENT OFTHEUKBRANCH HEAD OFEMEAAND Phil Cox 25 years atSVB SVB FINANCIALGROUP PRESIDENT ANDCEO Greg Becker 4 years atSVB GENERAL COUNSEL Michael Zuckert 14 years atSVB OFFICER CHIEF HUMANRESOURCES Chris Edmonds-Waters 11 years atSVB SILICON VALLEY BANK PRESIDENT Mike Descheneaux years26 atSVB CHIEF CREDIT OFFICER Marc Cadieux 7 SVB 2014 4:3


 
Q1'18 Market Factors Strong Liquidity Higher Interest Rates Lower Taxes • Highest pace of VC • Fed Funds +25 bps in • SVB's effective tax funding since 2006 March rate declined to ($28.2B) • 1M LIBOR +32 bps, 27.5%, compared to • Strong secondary 3M LIBOR +62 bps 42.0% for FY 2017, offerings by SVB clients • 5Y Treasury +36 bps due to federal tax ($2.4B) cuts • 15 U.S. VC-backed, Tech/LS IPOs Q1 2018 Corporate Overview and Financial Results May 4, 2018 8


 
Q1'18 Takeaways EPS: $3.63 Net Income: $195.0M Highlights (vs. Q4'17) • Outstanding Growth • Non-interest expense: +0.5% – Average total client funds:+7.9% • Stable credit quality – Average loans: +6.1% • Lower tax expense – Net interest income: +6.5% • Bank Tier 1 Leverage ratio: 7.69% – Core fee income: +8.1% (+13 bps) – Return on equity: 18.12% • Improved revenue and balance sheet (+703 bps) growth outlook Challenges • Improved momentum in exit markets, but still not back to historical levels • Complex regulatory environment Q1 2018 Corporate Overview and Financial Results May 4, 2018 9


 
Q1'18 key earnings drivers • +$26.2M of loan and investment interest income from strong loan and deposit growth, higher rates • +$8.6M of core fees due to higher client investment fees driven by higher balances and spreads, plus strong transaction volumes • $19.2M of warrant asset gains • $18.4M of investment securities gains, net of NCI and impact of Roku Positive earnings impact earnings Positive • Lower income tax expense due to tax reform (27.5% effective tax rate) • $22.2M of losses from sale of Roku public equity securities following expiration of lockup • +$1.4M of noninterest expense including ◦ $8.8M of higher compensation and benefits expense ($6.5M related to Q1 seasonal expenses) Negative earnings impact earnings Negative ◦ Partially offset by $6.9M of lower professional services expense Q1 2018 Corporate Overview and Financial Results May 4, 2018 10


 
Quarterly highlights Return onaverage assets(annualized) (annualized) Return onaverage SVBFG stockholders’equity Effective taxrate Non-interest expense (annualized) Net charge-offs /Average totalgross loans controlling interests non-interestincome,Non-GAAP netofnon- non-interestincomeGAAP Net interestincome Net interestmargin $46.1B Average fixed income securities Change Average off-balancesheetclient investment funds Change Change Average deposits Average loans Net income available tocommon stockholders Diluted earnings pershare )Our effective taxrateiscalculatedbydividingincomeexpense bythesumofincomebeforetaxexpenseandnetattributable tononcontrolling This isanon-GAAP measure.Pleaseseenon-GAAP reconciliationsatendofthispresentationformoreinformation. 3) 2) EPSwasimpacted $0.80duetothe$37.6Mofadditionalincometax expenseduetotaxreformand$8.8Moflosseson AFS securitysalesin connection withour 1) Q1 2018 Corporate andFinancialResults Overview following taxreform. interests. Q4'17included$37.6M ofadditionalincometaxexpenseduetotherevaluationdeferred taxassetsandinvestmentsinlowincomehousingcreditfunds treasury andtaxmanagementobjectives. 3 2 May 4,2018 300 327 340 337 $419.9M $393.7M $374.0M $342.7M $310.0M 276 212 278 240 $265.4M $264.0M $257.8M $251.2M $237.6M 115 132 186 172 $195.0M $117.2M $148.6M $123.2M $101.5M 177 185 188 123 $155.5M $152.3M $158.8M $128.5M $117.7M 111 190 132 145 $142.5M $144.5M $153.2M $119.0M $111.1M 36%3.8 95%5.4 27.50% 53.54% 39.58% 36.78% 33.62% 10%1.5 45%1.9 18.12% 11.09% 14.59% 12.75% 11.03% $40.0B $20.1B $21.2B 0.91% 2.88% 0.25% $1.91 Q1'17 0.7% 4.2% 2.6% 2.B$21.6B $20.5B 4.B$53.3B $49.1B 0.44% 4.B$44.0B $42.1B 3.00% $21.5B 1.04% Q2'17 $2.32 6.5% 5.5% 2.2% $23.1B 0.19% 3.10% 1.18% $2.79 Q3'17 4.5% 8.5% 5.2% 4.B$46.1B $44.8B $22.4B 5.B$64.4B $57.6B 2.B$24.0B $23.8B 0.92% 3.20% 0.23% Q4'17 $2.19 4.0% 8.1% 1.7% 1 $23.8B 0.15% 3.38% 1.51% 11.8% Q1'18 $3.63 3.0% 6.1% 11 SVB 2014 4:3


 
(annualized) Return onaverage SVBFG stockholders’equity Effective taxrate Return onaverage assets(annualized) Non-interest expense (annualized) Net charge-offs /Average totalgross loans controlling interests non-interestincomeNon-GAAP ,netofnon- non-interestincomeGAAP Net interestincome Net interestmargin Average fixed-income securities $263.9M funds Average off-balancesheetclient investment Change Average deposits $214.5M Change Average loans Net income available tocommon stockholders Diluted earnings pershare Annual highlights )Oureffective taxrate iscalculatedbydividing incometaxexpensebythesumof beforeincometaxexpense andnetincomeattributabletononcontrolling interests. Non-GAAP noninterest income,netofnon-controlling interestsisanon-GAAP measure.Please seenon-GAAP reconciliations atendofthispresentation formoreinformation 7) Includesavailable-for-saleand held-to-maturitysecurities heldonthebalancesheet 6) 5) 4) In Q1'17 werevisedpriorperiods’presentationofnoninterestexpensetoconform tothecurrentperiodpresentation,whichreflectour provision forloanlossesand 3) Includedin dilutedearningspercommonshareandnetincomeavailable tocommonstockholdersin2017aretaxbenefitsrecognizedassociated withtheadoptionof Includespost-taxnetlossof$11.4M relatedtothesaleofourSVBIFentityinIndia 2) 1) tax reform. Included in2017 is$37.6Mofadditionalincometax expenseduetotherevaluation ofdeferredtaxassetsandinvestments inlowincomehousingtax creditfundsfollowing and taxmanagementobjectives. EPS wasimpacted$0.80dueto the $37.6Mofadditionalincometaxexpenseduetoreformand $8.8Moflosseson AFS securitysalesinconnectionwithourtreasury component ofnoninterestexpense. All prior periodshavebeenrevisedtoreflectthischange. for unfundedcreditcommitments togetherasour“provisionforcreditlosses”.Inpriorperiods’presentation, ourprovisionforunfundedcreditcommitmentswerereported asa prospective basiswithnochanges topriorperiodamounts. Accounting StandardsUpdate2016-09, ImprovementstoEmployeeShare-BasedPayment Accounting in the firstquarterof2017. This guidancewasadoptedon a Q1 2018 Corporate andFinancialResults Overview Change 7 5 6 5 May 4,2018 676 707 700 898 $1,010.7M $859.8M $780.0M $700.7M $607.6M 303 325 411 485 $527.8M $448.5M $441.1M $352.5M $330.3M 632 522 428 466 $557.2M $456.6M $472.8M $572.2M $673.2M 673 866 1064 1105 $1,420.4M $1,150.5M $1,006.4M $856.6M $697.3M 40.63% 11.13% $10.6B $24.2B $19.6B 0.92% 0.33% 3.29% 19.8% 23.7% $9.4B $4.67 9.5% 2013 10.46% 41.02% 0.80% $30.0B $16.6B $28.3B 24.0% 44.4% $11.5B 0.32% 23.0% 2.81% $5.31 2014 1 1 1 1 339 327 $490.5M $382.7M $343.9M 39.95% 11.18% $14.8B $36.3B $39.2B 0.84% 0.30% $22.3B 30.6% 28.2% 28.3% 2.57% $6.62 2015 10.90% 39.55% $43.4B $38.8B 0.46% $18.3B $21.5B 0.87% 10.5% 23.8% 2.72% 6.8% 2016 $7.31 42.02% 12.38% $22.4B $42.7B $51.5B $9.20 $21.2B 3.05% 18.8% 0.27% 1.01% 10.3% 15.7% 2017 4 2,3 12 SVB 2014 4:3


 
Q1'18 Growth driven primarily by Private Equity by Private primarily driven Growth Q1 2018 Corporate andFinancialResults Overview Billions $ $ $15 : Average loansgrew 2 2 0 5 $ $ Q 2 2 1'17 0.4 0.1 Aver May 4,2018 a el ge $ $ Q 2 2 2' 0.5 1.0 o 17 a n s Q $ $ 2 2 3' 1 2 17 Perio . . 6 2 6.1% d - e n Q $ $ l d 2 2 4'17 2 3 o . . a 4 1 n s $ Q $ 2 2 1'18 4.6 3 . 8 13 SVB 2014 4:3


 
Wine $0.9 4% A diversified loanportfolio Q1 2018 Corporate andFinancialResults Overview Private Bank $2.7 Gross Loans: billion $24.7 11% Venture Capital Private Equity/Private $11.2 45% Other $0.3 1% 4 May 4,2018 Software/ Internet $6.3 25% Life Science/ Healthcare $2.0, 8% 1,2 Hardware $1.3, 6% Technology andLife Science/Healthcare Only 4) Primarily capital calllinesofcredit Primarily Technology andLife Science/Healthcare percentages are asa% ofTotal GrossLoans 4) 3) Bank includesloansdesignatedasConsumer Private Loans (including realestatesecured Asof3/31/2018;gross loansdonotincludedeferred fees andcosts. 2) 1) loans) inourearnings releasesandourForm 10-Kand10-Q reports. $9.6 billion Sponsored Buyout Non-Early Stage Balance Sheet Early Stage $2.4 $2.2 $2.2 $1.5 $1.3 (5%) Other ( (9%) (9%) (6%) ( 39% 10% ) ofGrossLoans) is asset-based lending Investor-dependent 2 Investor-dependent 1 Cash flowdependent2 Cash flowdependent1 covered by current Cash flowandhybrid Revenue: $0-$5M Revenue >$5M Balance-sheet assets; $1.0B dependent 1,3 14 SVB 2014 4:3


 
Our loan portfolio has evolved over time • Private Equity has driven the majority of recent growth, although we have seen growth in all niches • Our Private Equity portfolio has historically been characterized by lower yields (relative to the rest of our portfolio) and high credit quality Loans, net of unearned income 12% $30 11% 10% $24.6 $25 9% 9% $23.1 8% 8% $19.9 $20 $16.7 $14.4 $15 $10.9 Billions 6% 6% 6% 6% $8.9 $10 $7.0 $5.5 $4.5 $5.5 $5 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3/31/18 Period Ending Software/internet Hardware Private equity/venture capital Life science/healthcare Premium wine Private Bank Other Early-stage loans as % of loan portfolio Q1 2018 Corporate Overview and Financial Results May 4, 2018 15


 
Q1'18 Q1 2018 Corporate andFinancialResults Overview federal statutory tax rate of 35 percent for periods prior to2018and 21 percent forfederal tax rateof35percentprior 2018 statutory for periods * Net interest income ispresentedon afully taxableequivalent basistoconsistently andtax-exempt income reflect from taxableloansandsecurities basedon the securities Millions $ $50 $ $30 $10 4 2 0 0 $ 0 0 0 0 0 0 $91.3 2.25% 6.27% Q N Higher average loanandinvestment balances andhigher interest e 1'08 : Net interest income grew 6.5% i t n t e r Q e s 1'09 i t n com rates drove netinterestincome increase Q e 1'10 * May 4,2018 Q 1'11 N e Q i t 1'12 n t e r e s Q m t 1'13 a r g i n Q 1'14 Q 1'15 Fed e Q r 1'1 a F l 6 u n d Q t s 1'17 a r e r get 3.38% $421.2 1.75% Q a 1'18 t e 0 2 4% 6% 8% % % 16 SVB 2014 4:3


 
as portfolio mixcontinues shift towards PES Higher rates drive continued margin improvement, Interest Rates/Yields Q1 2018 Corporate andFinancialResults Overview 1 0 0 5% % % 8.78% 6.2 2 Q . 1'08 2 5% 7 % Fed N Q e i t 1'09 e n r a t F l e r e u s n m t d t s Q a 1'10 a r g r e r get i n a May 4,2018 t e Q 1'11 Q 1'12 M 1 Loa o yie n n t L h l Q d I 1'13 B O R Q 1'14 Q 1'15 2 . 5 M 3 P 0 riv % Q o a n 1'1 t t E e L h 6 q I u B i 4.4 O ty/Ven R Q 8% 1'17 t u r C e a p 45.4% 5 3 1.75% i Q t . . a 0 3 1'18 l 8% 6% 0 2 5 5% 0 % % PE/VC % of Loan Portfolio 17 SVB 2014 4:3


 
Q1'18 Allowance for loanlosses/totalgrossloans:at1.11% (vs. inQ4) 1.10% • Provisionfor creditlossesof$28.0M (vs. $22.2M inQ4) • Q1 2018 Corporate andFinancialResults Overview Millions Millions $ $10 $10 $ $15 $15 2 $ $50 2 $5 0 0 $ 5 0 0 0 : Credit quality remained stable $12 0.2 $13 Q 0.6 Q 1'17 . 5% 1'17 N 8.8 2 8% o M n M - p e rfor m i n l g May 4,2018 N N o $ 0.4 $12 Q a e e 2 0.5 Q n c t c t 2' 2 s 2' . 4% 0.3 17 / 5 h h 7 t 17 M a a % o r r t M ge- ge- a g l o o r ffs ffs/aver o N s o l s n N - o e p a c t e n rfor a s h et ge $10.5 $12 0.19% a Q 0.5 Q r m 3' ge- 3' o 5 i 17 6% n t . 17 4 a M l g o g l M ffs o r a o Tot n s s l s a n l o a o n n ( s - p a $119.5 e $12 0.2 n Q 0.51% Q rfor n 4'17 4'17 u . 3 a 9 m % liz M M i n e l g d ) o a n s $116.7 0.1 0.47% $ Q Q 8.8 1'18 1'18 5% M M 0.0 0.1% 0.2 0.3 0.4% 0.5% 0.0 0.5% 1.0 % % % % % 18 SVB 2014 4:3


 
History ofstrong, resilient credit quality 2000 Five non-dot-com loansdrove 1.07% 3 $18.4 . 3 Q1 2018 Corporate andFinancialResults Overview (2000: Dot-com bust) 2 % 2001 increase inNCOs 2002 2003 2004 2005 N N N e o o c t n n May 4,2018 2006 - - p p Five problemloansdrove short- h (2008-2009: Financial Crisis) (2008-2009: FinancialCrisis) e e a lived spike inNPLs andNCOs rfor rfor r ge- 2007 m m o f a ffs i i n n l g l g 2008 1.5 o % s o o a a 7 n n % a s s 2009 2 aver f . o % s 6 4% 2010 a t f et ge o t o a Post-crisis NCOs remainedbelow50bps g l t 2011 a g l r o r s o l s 2012 s l s o a o n a primarily duetofour Sponsored primarily s n 2013 resolved) andoneCorporate ( s NPLs elevatedsince Q2'15 Buyout loans(twowere a n n 2014 u a Finance loan liz e 2015 d ) 2016 2017 3/31/18 $116.7 0.47% 0.15% Millions 19 SVB 2014 4:3


 
Our creditOur risk profile has improved over time 0.87% 2 As non-early stage, corporate loans>$20Mincreaseasa percentage ofourtotaltechnology/life science • Ouroverall net charge-offratiohasremainedstable • Early-stage have loans(withdecreasedasa%ofourloanportfolio charge-offrisk) greatesthistoric • credit performance Strongest inrecent growth yearsthebesthistoric hasbeeninareaswith • 19% 1 0 2 Q1 2018 Corporate andFinancialResults Overview 0 % 8 loan portfolio,charge-offs individual canbe Bank) andPrivate Equity (Private 2 2 17% . 1 0 6 1% N Ear s life L 0 4% a e r 9 c t e( ge ly-s c h 0.7 2 i 2 1 a e t 0 > 0 0 r a n $ ge- 7 1 % el ge % ep ce 2 % 0 0 o (0.02) M o ffs/aver o 2 a 3 t ) 8% rtf 0 n 2 e a s % 1 olio c 1 h % o % s n 0.3 a 2 o 3 et ge 9 l 0 5% o % 1% 1 g l f 2 /ies y/life o o t a a 0.33% 2 p n g l 37% 9 0 % r 1 o c o 3 rtf i s e l s n 0.3 olio 2 el ce 3 o 8% 0 8% a May 4,2018 2 1 n o % 4 ( s a n a 0.3 a s 2 n 3 6% 0 n 5% o % s 0 u 1 a % 5 liz 0.4 2 e 3 t f 6% 0 d 6% ) o 6% 16 t a t l 0.2 2 e 3 6% 0 c 5% h 7 17 n % o nominall 3 l o 0.1 /31 37% g 6% y/ 5% /18 y larger 11.0% 3.8% 1.6% 3.3% charge-off rate(recession) 2009 annualearly-stage net (VC market recalibration) charge-off rate 2016 annualearly-stage net stage netcharge-offrate 2008-2017 average early- net charge-offrate 2018 annualized early-stage 20 SVB 2014 4:3


 
A high quality balance sheet $1.1, 2% $1.1, Other Q1 2018 Corporate andFinancialResults Overview )Non-marketablesecurities net ofnon-controllinginterests were$699million. This isa non-GAAP measure.Pleaseseenon-GAAP Netloansrepresentsgross loansnetoftheallowance forloanlossesandunearnedinterestincome. Grossloansat3/31/18 were$24.7B 3) Balancesasof3/31/18 2) 1) N e reconciliations at endofpresentationformoreinformation. $ 4 l t Period-end assets: $53.5B 2 6% 4.3 o a n s 2 C $ 5% a 2 s . 6 h securities maturity Held-to- $7.8B 18% Fixed Income $10.1, 19% Securities Securities Income (HTM) $14.5 (AFS) Fixed 27% Non-marketable securities May 4,2018 Investments) $0.8, 1% 3 (VC 2 $8.4, 17% Interest- deposits bearing Borrowings Period-end liabilities: $48.9B 1 $1.8 4% b e N a o rin Other n $1.2 2% - $37.5 7 i d g n 7 t % e e r p e o s s t- i t s 21 SVB 2014 4:3


 
Robust balance sheet growth Billions Strong growth inloansandsecurities Strong growth $ $ $50 $ $30 $10 Q1 2018 Corporate andFinancialResults Overview 4 6 2 $ 0 0 0 0 $ 2 26 0 1 .4 3 Other assets Net loans VC-relatedNon-marketable (primarily investments) securities securities Held-to-maturity Available-for-sale securities $39.3 2 0 1 4 $ Perio 2 Assets 4 0 4.7 1 5 E d $ 2 n 4 0 d 4.7 16 i n May 4,2018 g $51 2 0 17 .2 3 $53 /31 /18 . 5 Billions $ $ $50 $ $30 $10 Non-interest-bearing deposits Non-interest-bearing 4 6 2 $ 0 0 0 0 82% $ 2 2 0 3 1 . 3 3 ofTotal Deposits $35 2 Non-interest-bearing deposits Non-interest-bearing Other liabilities Interest-bearing deposits Interest-bearing Borrowings 0 1 . 4 3 Liabilities Perio $ 2 4 0 1.4 1 5 E d $ 2 4 n 0 d 0.9 16 i n g $ 2 4 0 As of3/31/2018 6.9 17 3 $ /31 4 8.9 /18 22 SVB 2014 4:3


 
A high quality investment portfolio In June 2014, certain AFS securities were re-designated as HTM. Prior to June 2014, our fixed income investment securities portfolio comprised only toJune2014,ourfixedportfoliocomprised AFSsecurities. income werere-designated asHTM.Prior investmentsecurities In June2014,certainAFSsecurities Billions securities. only comprised Available-for-Sale portfolio AFS certain ourinvestment* InJune 2014, toJune2014, securities Prior securities. were re-designated asHeld-to-Maturity (AFS) securities NewpurchasesinQ1'18 includedresidential MBS andmunicipalbonds • U.S. Treasuries make up • Liquid,fixed primarily adurationof3.4years incomewith portfolio • $ $10 $15 2 $ $5 Q1 2018 Corporate andFinancialResults Overview 0 0 Agency-issued rate collateralized residentialmortgage-backed –variable securities Agency-issued collateralized residentialmortgage-backed –fixed securities rate U.S. agencydebentures U.S. Treasury Securities $12 2 0 1 . Ava 3 0 i l $13 2 a 0 b 1 l . e 4 5 - for $16.4 Perio 2 -Sa 0 1 l 5 S e E d e $12 2 n c 0 d u 16 i rit . n 6 g May 4,2018 i e s $11.1 2 0 17 24% 3 $10.1 /31 /18 ofinvestment portfolio Billions $ $10 $15 2 $ $5 0 0 Municipal bondsandnotes Agency-issued residentialmortgage-backed securities Agency-issued commercial mortgage-backed securities 2 $ 0 0.0 1 3 H e l d 2 $7.4 - 0 t o 1 4 - M a t 2 Perio u $ 0 iyS rity 8.8 1 5 E d e c 2 n $ u 0 8.4 d rit 16 i n i g e s $12 2 0 As of3/31/2018 17 . 7 3 $14.5 /31 /18 23 SVB 2014 4:3


 
during arisingrate environment ofaliquid fixedBenefits income portfolio securities. only comprised Available-for-Sale portfolio AFS certain ourinvestment* InJune 2014, toJune2014, securities Prior securities. were re-designated asHeld-to-Maturity (AFS) securities Reinvestment ratessignificantly run-off higherthanportfolio • Since Q1'17, average cashflows portfolio of$1.3Bperquarter • Q1 2018 Corporate andFinancialResults Overview Billions $ $ $ $3 $1 0 4 2 F i e i xed F i e i xed n com Q 2 1.4% $1 . 1'17 n c e 6% com .2 a s flows h p e o rtf loc olio May 4,2018 Q 2 1.4% $1 a . 2' 4% s .3 17 lw,r flows, h Wei g h u t n e v.yie avg. d - o fyie ff Q 1.6% 2 $1 . 3' 5% .2 17 l l o d d a s p f n u r d r c h a e s i e nves s Q 3 1.3 $1 4'17 t . 2 m .3 % % e n Wei yie t g h l t d e v.yie avg. d yq by s Q 1.6% 3 $1 u . 1'18 a 5% l o d .4 rte c f r As of3/31/2018 a s flows h 0 1% 2 3 4% % % % 24 SVB 2014 4:3


 
Billions Q1'18 $10 $15 $ $5 Q1 2018 Corporate andFinancialResults Overview 0 Billions Depositbetaremainedlowat12percent • Healthy aswellhealthyIPOandrobust venturecapitalfundingoverall, • $10 $12 $50 Tot Swee M I $ $75 secondary offering activityfor ourclientsdrove clientfundsgrowth secondary offering $ n 2 o * Q1'18 depositcost increaserepresents anincreasetointerest expense of$1.6M 0 0 5 5 .b t. n a e aver l d p m y e Tot Aver Aver Aver 0.1 $ $ : Average total client fundsgrew 7.9% $32 Q a Q $7.2 4 8 $5. $1 $7.2 1'17 rin 1'17 e Aver 6.1 6.1 a a 0 . aver l p a a a .1 a 7 r 5 c g eo ge n ge i ge o % e d ket ed ge s a i eTot ge h t n $34.6 $ Q $91.2 ff-b o a i s e $7.5 t 49.1 e ec ge n 2' e c e p i r for n k 17 n p a e o t i l s o a lie e n s a t-b C l s r n i g/sav e t i n es ce t s e s lie e $36.6 Q $53 f t $97.3 i s t-b $7.5 i a 3' g rin u n h for n o n 17 n e F t 0.1 . e Q in May 4,2018 3 a d $5. $7.4 d g $1 e rin 2' u s c t gs ffi n 2 .1 e 17 e d $102. 7 d g lie % Q p $37.0 $57.6 ces s i $7.8 o g 4'17 n s e o n f t i p t o 4 s u s ffi n i t d $11 s $ ces $38.0 Q s $ 6 1'18 8.2 4.4 0.5 Perio 0.1 Q $5. $1 $7.5 3' E d 2 .0 17 8 % Cos Tim M n d o i n 0.0 0.0 0.2 0.1 n o t 0.1 d e e g m y i f 0 0 0 5% 5% e % % % p n a o t r e s e d ket r i 0.0 t 0.1 e Q s s 0.1 1'17 t-b Q $ 0 $1 8% $7.8 e 4'17 6.0 % S Cos p e 2 .0 p o a % r rin s e o t 0.1 i 0.1 a Q t o d d f s 2' d g 2 1% Yie 17 e c n % p e o l p lie d s o / i t 0.1 0.1 R n s Q s i t i a 3' t t s 2 2 nves e 17 0.2 % % Q $1 $ $ 1'18 6.3 8.2 t 0 .0 m 0.1 0.1 % Q e 4'17 n 2 3 fee t % % s 0.2 0.1 Q 1'18 0 4% % * 25 SVB 2014 4:3


 
Robust client liquidity Q1 2018 Corporate andFinancialResults Overview Billions Depositbetaremainedlowat12percent • Strongfundingandsolidexit activityfor ourclients,plussustained • $10 $12 $50 $ $75 clients), have driven clientfunds growth clients), havedriven healthy newclientacquisition(especially early-stage equity andprivate $ 2 * Q1'18 depositcost increaserepresents anincreasetointerest expense of$1.6M 0 0 5 5 $ $ $13 2 $5. 4 2 0 4.2 3 1 Aver . Aver Aver Aver . 7 3 9 8 a a a $58.4 $30.0 $ $58.3 2 a eo ge n ge i ge $7.9 2 0 eTot ge 0.4 1 n 4 ff-b o t n e i r n a e a $39.2 $75. $ t 2 l s $ e C l a 2 t-b 0 8.5 r n 7.8 e es ce 1 lie s e 5 5 t-b a rin n h e e F t $ May 4,2018 $ a $31.2 2 d g e $7.6 rin 4 8 c t 0 u 3 2 e 16 n d g lie . p . 4 2 d o n s s e f t i p t $94.3 $94.2 $35 $51 o s 2 u $7.5 s 0 n i t d 17 s .5 . s 2 3 $11 $110.5 $ $38.0 /31 $ 6 8.2 4.4 0.6 /18 0.0 0.0 0.2 0.1 0.1 0 0 0 5% 5% % % % 0.0 0.16% 2 0 6% 1 3 S Cos 0.0 0.1 p 2 r 0 e o t 5% a 1 5% o d d f 4 Yie e c n 0.0 0.0 p 2 l o d lie 0 s / i 6% 6% 1 R t n 5 s i t a t nves e 0.07% 2 0 0.1 t 16 m 0.07% e 2 n % fee t 2 0 17 s 0.1 3 0.2 1% /31 0 /18 0.1 % * 4% 26 SVB 2014 4:3


 
Expanding international business activity $10.0B $2.4B Q1 2018 international international deposits* Corporate and Financial Results Overview loans* Includes average Israel loan anddepositbalances for andAsia internationaloperations inU.K., for Q1'18; thisisa * management segment view and does not tie to regulatory definitions for foreignmanagement exposure anddoesnottietoregulatory segmentview May 4, 2018 ogKn ersnaieofc 2013 Representative office Hong Kong emn rnhapiaini rgesTBD Branchapplication inprogress Germany Location aaaBac plcto npors TBD Branchapplication inprogress Canada Israel China ..Fl evc rnh2012 branch Fullservice U.K. Business development office Joint venture bank(Beijing, Business development and ersnaieofc 2008 representative office Description Shanghai) (Beijing) opened 2005 2012 Year 27 SVB20144:3


 
charge-offs over time charge-offs Net warrant gains have exceeded early-stage Q1 2018 Corporate andFinancialResults Overview Millions - $10 $10 - $50 $50 $ 0 0 0 2002 $ ( Cum N 3 $ e ) ( g t 1 3 u 2003 a $ ) l a i 8 n t $ i o s en ve ( 2004 1 e n ) $3 e q g t $ u 0 Aggregate warrantgainsnetofearly-stage losses i a 2005 yw ty i $3 n (wa s $ a ( May 4,2018 2 r 2006 r $ ) a 2 r n r 2 a t a $ n ( 7) t s 2007 $ l s s 2 e e 3 $ t s s ( E s 1 2008 0) $11 N S $ (2002 -2018) ( COs 16) 2009 ) $ ( 5 2010 8) $7 $ ( 2 Ear 2011 3 $37 ) ly-s $ ( 1 t 2012 $19 a ) en ge $ ( 2 e 1 2013 $ c t ) 4 6 $ h ( a 26 r ge- 2014 $71 ) $ o ( ffs 3 2015 0) $71 $ ( 1 2016 2 $38 ) $ (45 2017 $55 ) $ ( 3 Q1'18 5 $19 ) $127M $ (6) 28 SVB 2014 4:3


 
Investment securities andwarrant gains Q1 2018 Corporate andFinancialResults Overview Millions * This is anon-GAAP measure. Pleaseseenon-GAAP reconciliationsatendofpresentation formoreinformation. $10 $14 $12 $ $ $ $ 4 6 8 2 0 0 0 0 0 0 0 s N N e o e c g t n u $ - $77.3 2 rit G 4 a 0 A n AAP 6.1 i 1 i n e 3 o s n s e n e e $30.7 $71.0 2 o t g t 0 q u n f 1 a 4 i i yw ty n o ( s n - con $71.0 l $57.3 a 2 o r 0 s r 1 s a t e 5 r n o s May 4,2018 a t o ) l lin s $ $37.9 i n 2 s i g 4 e 0 3 t nves 16 n s . 4 t e r t e m $54.6 $35 s 2 t e 0 s n * 17 t . 4 gains fromRoku Reflects $15.9M Millions of unrealized $ $35 $15 - 2 $5 $5 5 IPO N N s e o e c g t n u Q - $9.5 $ rit G 1'17 a 6.7 A n AAP i i n e o s n s e n e $10.8 Q e $ o t g t 2' 8.2 q sales ofAFS 17 u n f a securities i losses on $8.8M of i Reflects yw ty n o ( s n $ - Q $9.7 con l 2 a 3' o r 4.9 s r 17 s a t e r n o s a t o ) l lin Q $12 s $ i n s 4'17 8.0 i g e t nves . losses onsale 1 n s t $22.2M of securities e Reflects of Roku r t Q $19.2 e - m $3. s 1'18 t e s n 8 * t 29 SVB 2014 4:3


 
to higherbalances andrateincreaseshighertransactionvolumes Q1'18 Strong growth driven primarily by higherclient investment primarily fees driven due Strong growth Q1 2018 Corporate andFinancialResults Overview Millions $10 $12 $ $ $ $ 4 6 8 2 $ 0 0 0 0 0 0 0 Tot Len For a e : Corefee income grew 8.1% d cor l i i g n exch n r g $ Q e i fee e 8 1'17 e 2 l a . 6 t a e n fee d n efee ge com s e s * May 4,2018 Q $ 87.3 2' 17 C C lie r e d n i i t c t nves a r fee d t m $102. e Q s n 3' fee t 17 7 s $10 Q $ $34 $10 $16 $19 Lette D 4'17 $ 2 8 e 6.4 0 p o r s o s i s t c f e vc c rvice r e d i t /St h a a r n ges $11 Q d $34 $18 $ $ $11 yLOC by 1'18 $ 2 2 8 5 2 3 . 0 30 SVB 2014 4:3


 
A history ofstrong core fee income growth Higherclient investment dueto fee inrecent growth quarters • StrongFX volumein2017 growth partiallyby offset lower • higher balances andrateincreases competitive spreads Q1 2018 Corporate andFinancialResults Overview Millions $ $ $30 $10 4 2 0 0 $ 0 0 0 0 0 Tot Len For a e d cor l i i g n exch n r g 2 $175 e i fee e e 0 l 1 a 3 t a e n fee d n efee ge com s e s * May 4,2018 2 $ 0 2 1 1 0 4 C C lie r e d n i i t c t 2 $ 26 0 nves a 1 r 5 fee d 5 t m e s n fee t s 2 $316 0 16 Lette D e p 2 $379 o 0 r s o s i 17 s t c f e vc c rvice r e d i t /St h a a r n ges Q d $11 yLOC by 1'18 5 31 SVB 2014 4:3


 
Performance and growth driving non-interest expense Revenue and growth investment initiatives: • People (staffing, incentive compensation based on performance) • Infrastructure improvements • Enhancements to our risk and compliance infrastructure Compensation and Benefits Expense Other Noninterest Expenses 2,498 2,396 $404 2,225 $606 2,004 $346 $120 1,815 $514 $185 $307 1,669 $474 $291 $150 $105 $409 $138 $241 $97 $42 $367 $77 $121 $40 $48 $112 $145 $61 $120 $40 $40 $40 Millions $ Millions $122 $33 $30 $72 $101 $277 $35 $96 $244 $25 $66 $100 $214 $166 $50 $52 $187 $46 $27 $159 $49 $44 $122 $14 $11 $76 $94 $83 $95 $19 $73 $29 2013 2014 2015 2016 2017 Q1'18 2013 2014 2015 2016 2017 Q1'18 Salaries/wages and Incentive comp. plans Professional svcs. Premises & equip. other employee comp. Net occupancy Business dev. Other employee Avg. full-time incentives/benefits equivalent employees Other expenses* * Includes costs for FDIC and state assessments, corespondent bank fees, lending and other client-related processing, telephone, data processing and other expenses; please see our Q1 2018 Corporate Overview and Financial Results May 4, 2018 32 quarterly filings for more information.


 
Efficiency ratio has trended downover time Drivers Q1 2018 Corporate andFinancialResults Overview Millions $ $1 $1 Focus onsystems, processes andinfrastructure tooptimizecost efficiencies • • 2 $50 ,0 , ,5 0 and support efficient growth overthelong-term growth efficient and support Continued strongrevenuegrowth Thesearenon-GAAP measures.Pleaseseenon-GAAP reconciliations atendofthispresentationformore information.Non-GAAP non-interestexpense * 0 0 0 $ 0 0 0 0 0 net ofnon-controlling interestsandnon-GAAP efficiency ratio excludetheimpactofnon-controlling interests. $1 ,029 57.8% 2 0 1 3 $595 N N N o o o n n n - - - G G G $1 A o AAP n AAP t AAP May 4,2018 ,2 56.3% 1 2 1 0 a p o 1 x n e 4 $ a r - 6 b i a n 8 l t e e t i 2 n e r e g q e u s ffi exp t i $1 v a c ,4 i l e e 5 53.8% 49 e n n 2 3 n r t yr cy 0 . s 8% 1 e e 5 $779 n , ven a t i e o o t u * e n , n f e o $1 o t 53.7% n ,6 - con n f 0 2 0 o 0 t n r 16 o - $ con l lin 8 59 t i g r o n l lin t e $1 r i g 51.8% e s ,9 n t s t 51 2 e * 0 r e 17 $1 s t s ,0 * 1 0 47.1% $56 Q 4 1'18 $ 26 5 33 SVB 2014 4:3


 
lower taxes Increase inQ1'18 duetohigherratesand ROEwasprimarily Above-peer return onaverage equity Q1 2018 Corporate andFinancialResults Overview 2. Annualized the averageofour peergroupbasedonthemost recent datafromSNL Financial. 1. “Peers”referstopeergroupas reportedinourproxystatementsspecifictotheyearsand aresubjecttochangeonanannualbasis.PeerROEis 2 1 0 0 0 % % % 1 9.0 1.1 2 0 4% 1 3 3 % 1 8.9 0.4 2 May 4,2018 0 8% 1 6% 4 1 8.17% SVB 1.1 2 0 1 8% 5 1 8.83% Pee 0.9 2 0 16 r 0 s % 1 1 9.7 2 2 . 0 3 7 17 8% % 1 1 Q 8.1 1.79% 1'18 2 % 2 34 SVB 2014 4:3


 
Assumes nointerest rate increases 2019 )Outlookdoesnotassumeanyfuture rateincreases 5) Ouroutlookfornoninterestexpense ispartlybasedonmanagement'scurrentforecastofperformance-basedincentivecompensationexpenses.Suchforecastsaresubjectto 4) Noninterest expense(excludingexpensesrelatedtononcontrollinginterests) isanon-GAAP measure,whichrepresentsnoninterest expense,butexcludesexpensesattributable 3) Core feeincomeisanon-GAAP measure,whichrepresents noninterestincome,butexcludescertainlineitemswhereperformanceis typicallysubjecttomarketorother 2) Ouroutlookfornet interestincomeandnetmarginis basedprimarilyonmanagement's currentforecastofaveragedeposit andloanbalances anddeploymentofsurplus 1) * These arenon-GAAP measures 2018 full-year outlook Non-interest expense (excluding expenses change, andactualresultsmaydiffer, basedonourperformance relativetoourinternalperformancetargets. investors. See"UseofNon-GAAP FinancialMeasures"attheendofourquarterlyearningsreleaseforfurtherinformation regardingthecalculationandlimitationsofthismeasure. noninterest expenseforfiscal2017isincludedinthispresentation, aswebelievesuchreconciliationwouldimplyadegreeofprecisionthatbeconfusingormisleadingto presented withoutunreasonable efforts, noreconciliationfortheoutlookofnon-GAAP noninterestexpense(excludingexpensesrelatedtononcontrolling interests)toGAAP to noncontrollinginterests. As weareunable toquantifysuchlineitemsthatwouldberequiredincluded inthecomparableGAAP financialmeasureforthe future period release forfurtherinformationregarding thecalculationandlimitationsofthismeasure. believe suchreconciliationwould implyadegreeofprecisionthatwouldbeconfusingormisleading toinvestors.See"UseofNon-GAAP presented withoutunreasonable efforts, noreconciliationfortheoutlookofnon-GAAP corefeeincometoGAAP noninterestincome forfiscal2017isincludedinthisrelease,aswe conditions beyondourcontrol. As weare unabletoquantifysuchlineitemsthatwouldberequiredincluded inthecomparableGAAP financialmeasureforthe futureperiod described under the section"Forward-LookingStatements". cash intoinvestment securities.Suchforecastsare subjecttochange,andactualresults maydiffer, basedonmarket conditions,actualprepayment ratesandotherfactors Allowance for loanlosses for totalgross Non-performing loans/total grossloans Non-performing Non-interest expense (excluding expenses performing loansasa%of totalgross performing related tonon-controlling interests)* Q1 2018 Corporate andFinancialResults Overview related tonon-controlling interests) Please see our most recent Financial Release and earnings call transcript forcomplete Please seeourmostrecent Financial Releaseandearnings calltranscript information onmanagement'sthis outlook. assumptionsandforecastsregarding Net loancharge-offs Net interestincome Net interestmargin Effective Tax Rate Core fee income* Average deposits Business Driver performing loans performing Preliminary Average loans Net loancharge-offs Net interestincome Business Driver Average deposits Core fee income Average loans May 4,2018 2018 FullYear Outlookvs. 2017 outlook Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Between 0.30%-0.50% ofavg. Between 0.50% and0.70% of Between 3.50%and3.60% Between 27.0% and 30.0% Comparable to2017 levels the lowdoubledigits the lowdoubledigits Full Year Results the hightwenties total grossloans total grossloans the lowthirties the highteens 2018 FullYear Outlookvs. 2017 Full (as of Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Increase atapercentage ratein Between 0.30%-0.50% ofavg. (as of the highteenstolowtwenties the mid-teenstohighteens 4/26/2018 the lowdoubledigits the highsingledigits total grossloans 4/26/2018 Outlook increased Outlook increased Year Results the mid-teens Outlook increased Outlook increased Outlook increased from previousoutlookof3.35% and3.45% previous outlookofmid-singledigits ) Change from1/26/18 outlook ofhighteens outlook ofhighteens outlook ofmid-teens ) tohightwentiesfromprevious tobetween3.50%and3.60% FinancialMeasures"attheendof this to low thirties fromprevious tolowthirties No change No change No change No change No change tohighteensfromprevious tolowdoubledigitsfrom 35 SVB 2014 4:3


 
We expect rising rates to benefit us significantly We expect each 25 bps increase in short-term rates to contribute approximately $52 million to Net Interest Income* Changes in short-term interest rates Changes in Fed Changes in Net impact interest earned on: Funds Rate Interest Income (basis points) • Variable rate loans • Variable rate investment securities and reinvestment +100 +$209M • Cash and cash equivalents Primary benchmark indices: • National and SVB Prime rates +200 +$423M • 1-month and 3-month LIBOR • Federal Funds target rate * As reported in our sensitivity analysis included in our Q1 2018 Form 10-Q reports pursuant to applicable SEC requirements; these estimates are reported on a pre-tax basis and are based on a static balance sheet and assumptions as of March 31, 2018. Actual results may differ. Simulations used to analyze interest rate sensitivity may differ from actual results due to, among other things: differences in timing, frequency, and magnitude of changes in market rates; impact of competition; fluctuating business conditions and impact of strategies taken by management to mitigate these risks. Q1 2018 Corporate Overview and Financial Results May 4, 2018 36


 
Complex regulatory environment As a growing global, commercial bank with a holding company structure, we face a complex regulatory landscape and have ongoing investment in regulatory and compliance infrastructure -- people, processes and systems Key areas of regulatory focus include the following: • Enhanced Prudential Standards for >$50B bank holding companies ◦ CCAR ◦ Stress Testing ◦ Resolution Planning ◦ Modified Liquidity Coverage Ratio (LCR) • "Advanced Approaches" capital rules for banking organizations with >$10B foreign exposure ◦ Standardized capital floor ◦ More stringent capital buffer and leverage ratio requirements ◦ Full LCR • Risk Management program enhancements • BSA/AML • Current Expected Credit Loss (CECL) implementation Q1 2018 Corporate Overview and Financial Results May 4, 2018 37


 
We are well capitalized: SVBFG capital ratios )Thesearenon-GAAP measures.Pleasesee non-GAAP reconciliations atendofthispresentation formoreinformation. 2) Allratios,except TCE/TA and TCE/RWA, are asreportedinourmost recentbankholdingcompanyconsolidated reportsonFormFR Y9C. TCE/TA and TCE/ 1) Q1 2018 Corporate andFinancialResults Overview Tangible commontotangible equity RWA ratiosareasreportedinourmost recentquarterlyearningsreleases. Tangible commontorisk- equity Tier 1risk-based capital CET 1risk-based capital Total risk-based capital weighted assets Tier 1leverage assets 2 2 May 4,2018 19%1.1 28 32 29 13.06 12.97 13.26 12.83 12.91% 11.94% 31 39 38 42 39 13.99 13.96 14.21 13.84 13.92 13.13 16 29 23 28 27 12.65 12.77 12.89 12.34 12.93 11.61 0321 0521 07Q1'18 2017 2016 2015 2014 2013 .371 .681 .68.25 8.16 8.15 7.16 7.15 7.43 .177 .383 .48.67 8.34 8.34 7.63 7.74 8.31 22%1.0 27%12.87% 12.78% 12.80% 12.28% - - 1 38 SVB 2014 4:3


 
StrongBankearnings fromBanktoSVBFG resultedin$25Mofdividends Q1'18, $90M in2017 and • Down-streaming ofcapitalfromholdingcompany (Q2’14 $435Mcommonraiseand equity • PressureonTier 1Leverage ratiofromexceptional in2014and2015 depositandtotalassetgrowth • We are well capitalized: bank capital ratios Tangible commontotangible equity $40M in2016 Q1’15 $350M debtraise)increasedbankcapitalratiosacross theboard )Thesearenon-GAAP measures.Pleasesee non-GAAP reconciliations atendofthispresentation for moreinformation. BaselIIIadoptedinJanuary 2015 3) 2) Allratios,except TCE/TA and TCE/RWA, are asreportedinourmost recentbankholdingcompanyconsolidated reportsonFormFR Y9C. TCE/TA and TCE/ 1) Q1 2018 Corporate andFinancialResults Overview Tangible commontorisk- equity RWA ratiosareasreportedinourmost recentquarterlyearningsreleases. CET 1risk-based capital Tier 1risk-based capital Total risk-based capital weighted assets Tier 1leverage assets 3 3 2 May 4,2018 01%1.9 25 26 20 11.90 12.06 12.65 12.52 11.09% 10.11% 13 21 36 36 30 12.88 13.04 13.66 13.60 12.12 11.32 0321 0521 07Q1'18 2017 2016 2015 2014 2013 .41.91.91.51.811.68 11.98 12.75 12.59 11.19 9.84 .466 .976 .67.69 7.56 7.67 7.09 6.64 7.04 .863 .577 .77.41 7.47 7.77 6.95 6.38 6.58 25%1.5 20%11.90% 12.06% 12.65% 12.52% - - 1 39 SVB 2014 4:3


 
Q1 2018 Reconciliations Non-GAAP Corporate and Financial Results Overview May 4, 2018 40 SVB20144:3


 
Core fee income reconciliationNon-GAAP Non-GAAP corefeeincome Less: othernoninterestincome Less: netgainsonequitywarrantassets Less: gainsoninvestmentsecurities,net GAAP noninterestincome Non-GAAP corefeeincome Less: othernoninterestincome(loss) Less: netgainsonequitywarrantassets Less: gainsoninvestmentsecurities,net GAAP noninterestincome Non-GAAP corefeeincome(dollarsinthousands) Non-GAAP corefeeincome(dollarsinthousands) )Amountsprior toDecember31,2015havenotbeenrevisedreflect theretrospectiveapplicationofnewaccountingguidanceadoptedin secondquarterof2015related 2) This isanon-GAAP measure.See“UseofNon-GAAP FinancialMeasures”attheendofourmostrecentquarterlyearnings releaseforfurtherinformationregardingthe 1) to deconsolidationofourinvestments inVC-andPE-relatedfunds(ASU2015-02). calculation andlimitationsofthis measure. Q1 2018 Corporate andFinancialResults Overview 1 May 4,2018 Mar 31, 1769$2,2 1878$5,6 $155,518 $152,266 $158,778 $128,528 $117,659 1545$0,3 2532$1,7 $378,963 $316,170 $265,382 $557,231 $209,631 $456,552 $175,475 $472,794 $572,239 $673,206 2017 0321 2015 2014 2013 1,0 6,2 9455,4 64,603 51,740 89,445 267,023 419,408 8,7 8,6 1272$0,9 $115,010 $106,396 $102,722 $87,267 $82,578 2411,1 5861,8 12,259 9,058 17,982 15,765 15,896 15,238 12,811 17,630 12,421 15,970 2222,7 7045,5 59,110 54,555 50,750 37,892 47,004 70,963 24,573 71,012 32,222 46,101 ,9 0802,2 21319,191 12,123 24,922 10,820 6,690 Jun 30, 2017 Year endedDecember31, Quarter ended Sep 30, 2017 2 Dec 31, 2017 062017 2016 Mar 31, 2018 41 SVB 2014 4:3


 
Non-marketable andother equity securities reconciliationNon-GAAP Total non-marketableandother equitysecurities Investments inqualifiedaffordablehousing projects,net Non-marketable securities(equitymethod accounting): Other equitysecuritiesinpubliccompanies Non-marketable andotherequitysecurities(fairvalueaccounting): interests (dollarsinthousands) Composition ofnon-GAAP non-marketableandotherequitysecurities,netofnon-controlling Non-GAAP non-marketableandotherequitysecurities,netofnon-controllinginterests Less: amountsattributabletonon-controllinginterests GAAP non-marketableandotherequitysecurities (dollars inthousands) Non-GAAP non-marketableandotherequitysecurities,netofnon-controllinginterests Other investments China JointVenture Investment Debt funds Venture capitalandprivateequityfundinvestments Investments withoutareadilydeterminablefairvalue Unconsolidated venturecapitalandprivateequityfundinvestments Consolidated venturecapitalandprivateequityfundinvestments * Q1 2018 Corporate andFinancialResults Overview and limitationsof thismeasure. See “UseofNon-GAAP FinancialMeasures” attheendofourmostrecent quarterlyearningsreleasefor further informationregardingthe calculation * May 4,2018 Mar 31,2018 Mar 31,2018 $699,368 $699,368 $824,936 225,823 205,651 125,568 $33,358 35,731 76,384 18,884 69,018 29,825 4,694 42 SVB 2014 4:3


 
Net gains (losses)oninvestment securities reconciliationNon-GAAP noncontrolling interests Non-GAAP netgainsoninvestmentsecurities,of including carriedinterest Less: incomeattributabletononcontrollinginterests, GAAP netgainsoninvestmentsecurities noncontrolling interests Non-GAAP netgainsoninvestmentsecurities,of including carriedinterest Less: incomeattributabletononcontrollinginterests, GAAP netgainsoninvestmentsecurities Non-GAAP corefeeincome(dollarsinthousands) (dollars inthousands) Non-GAAP netgains(losses)oninvestmentsecurities )Amountsprior toDecember31,2015havenotbeenrevisedreflect theretrospectiveapplicationofnewaccountingguidanceadoptedin secondquarterof2015related 2) This isanon-GAAP measure.See“UseofNon-GAAP FinancialMeasures”attheendofourmostrecentquarterlyearnings releaseforfurtherinformationregardingthe 1) to deconsolidationofourinvestments inVC-andPE-relatedfunds(ASU2015-02). calculation andlimitationsofthis measure. Q1 2018 Corporate andFinancialResults Overview 1 May 4,2018 Mar 31, 4948$6,2 8,4 5,4 $64,603 $51,740 $89,445 $267,023 $419,408 2017 0321 2015 2014 2013 1,7 1,3 1,3 1,6 $9,058 $15,765 $15,238 $17,630 $15,970 4,2 3,9 21583229,187 8,312 32,115 236,294 342,128 958$,6 972$,0 $(3,847) $8,001 $9,742 $8,165 $9,508 7203,2 7304,2 35,416 43,428 57,330 30,729 77,280 ,6 ,6 ,9 ,6 12,905 7,764 5,496 9,465 6,462 Jun 30, 2017 Year endedDecember31, Quarter ended Sep 30, 2017 2 Dec 31, 2017 062017 2016 Mar 31, 2018 43 SVB 2014 4:3


 
Bank only TCE/TA andTCE/RWA Consolidated (SVBFG) TCE/TA andTCE/RWA reconciliationNon-GAAP Capital ratios Tangible commonequitytorisk-weightedassets Tangible commonequitytotangible assets Risk-weighted assets(RWA) Tangible assets(TA) Tangible commonequity(TCE) assets (dollarsinthousands,exceptratios) Non-GAAP tangiblecommonequityand Tangible commonequitytorisk-weightedassets Tangible commonequitytotangibleassets Risk-weighted assets(RWA) Tangible assets(TA) Less: Intangibleassets GAAP Total assets Tangible commonequity(TCE) Less: Intangibleassets GAAP SVBFGstockholders’equity assets (dollarsinthousands,exceptratios) Non-GAAP tangiblecommonequityand measure. * See“UseofNon-GAAP FinancialMeasures”attheendofourmostrecentquarterly earnings releaseforfurtherinformationregardingthecalculationand limitationsofthis Q1 2018 Corporate andFinancialResults Overview * May 4,2018 1,1,7 2,5,8 2,0,4 2,5,5 3,0,8 $33,396,675 $52,622,450 $31,403,489 $50,383,774 $26,856,850 $44,059,340 $24,301,043 $44,045,967 $21,450,480 $37,607,973 $16,612,870 $24,849,484 $34,903,720 $53,500,787 $32,736,959 $53,500,787 $51,214,467 $28,248,750 $51,214,467 $44,683,660 $25,919,594 $44,683,660 $44,686,703 $21,755,091 $44,686,703 $39,337,869 $16,901,501 $39,337,869 $26,410,144 $26,410,144 2013 2013 16439$,9,1 30905$,2,2 37252$3,900,094 $3,762,542 $3,423,427 $3,059,045 $2,399,411 $1,634,389 $4,415,446 $4,415,446 $4,179,795 $4,179,795 $3,642,554 $3,642,554 $3,198,134 $3,198,134 $2,813,072 $2,813,072 $1,961,635 $1,961,635 11.61% 9.84% 6.58% 7.43% — — 2014 2014 12.93% 11.19% 6.38% 7.15% — — Year ended December31, Year endedDecember31, 2015 2015 12.34% 12.59% 6.95% 7.16% — — 2016 2016 12.89% 12.75% 7.77% 8.15% — — 2017 2017 12.77% 11.98% 7.47% 8.16% — — March 31, March 31, 2018 2018 12.65% 11.68% 7.41% 8.25% — — 44 SVB 2014 4:3


 
)Amountsprior toDecember31,2015havenotbeenrevisedfortheadoption ofaccountingguidancerelatedtoourinvestmentsinVC-andPE-related funds(ASU2015-02 2) See“Useof Non-GAAP FinancialMeasures”attheendofourmost recent quarterlyearningsreleaseforfurtherinformationregarding thecalculationandlimitationsofthis 1) Less: net(losses)ontheSVBIFsaletransaction Non-GAAP noninterestincome,netofnoncontrollinginterests Less: incomeattributabletononcontrollinginterests,including carriedinterest GAAP noninterestincome one timeadjustments Non-GAAP noninterestincome,netofnoncontrollinginterestsandexcluding thousands) Non-GAAP Non-interestincome,netofnon-controlling interests(dollarsin interests Less: incomeattributabletonon-controllinginterests,includingcarried GAAP non-interestincome thousands) Non-GAAP non-interestincome,netofnon-controlling interests(dollarsin Non-GAAP non-interestincome,netofnon-controlling interests Non-interest income reconciliationNon-GAAP Deconsolidation). measure. Q1 2018 Corporate andFinancialResults Overview May 4,2018 1 2 a 1 07Jn3,21 e 0 07Dc3,21 Mar31,2018 Dec31,2017 Sep30,2017 Jun30,2017 Mar 31,2017 2013 1769$2,2 1878$5,6 $155,518 $152,266 $158,778 $128,528 $117,659 3032$3,1 4108$4,1 $527,779 $448,513 $557,231 $441,058 $456,552 $338,615 $472,794 $330,302 $572,239 $673,206 3032$5,4 4108$4,1 $527,779 $448,513 $441,058 $352,549 $330,302 1,0 1,9 5,6 4,2 142,494 144,523 153,164 118,992 111,100 4,0 233,624 342,904 6,559 — 2014 (13,934 9,536 ) Quarter ended 2015 31,736 2 5,614 Year ended 1 — 2016 7,743 8,039 — 2017 13,024 29,452 — 45 SVB 2014 4:3


 
Non-GAAP operating efficiencyratio GAAP operating efficiency ratio interests Non-GAAP taxable equivalentrevenue,netofnoncontrolling GAAP totalrevenue and excludingonetimeadjustments Non-GAAP noninterest income,netofnoncontrollinginterests GAAP noninterestincome noncontrolling interests Non-GAAP taxableequivalentnetinterestincome,of o-APnnneetepne e fnnotoln neet 9,8 8,0 7,3 5,7 ,0,4 265,449 $ 1,009,842 $ 859,273 $ Less: incomeattributabletononcontrollinginterests 779,134 $ Non-GAAP taxableequivalentnetinterestincome 681,802 Adjustments fortaxableequivalentbasis $ GAAP netinterestincome 594,888 $ Non-GAAP noninterestexpense,netofnoncontrollinginterests Less: amountsattributabletononcontrollinginterests GAAP noninterestexpense (Dollars inthousands,exceptratios) )OurconsolidatedGAAP noninterestexpenseswere modifiedfrompriorperiods’ presentationtoconformthecurrent period'spresentation,which reflectsourprovisionfor 2) 1) Non-GAAP operatingNon-GAAP efficiency ratio, net ofnon-controlling interests reconciliationNon-GAAP reported separately asacomponentofnoninterest expense. loan lossesandprovision forunfundedcreditcommitments togetherasour“provision forcreditlosses”.Inpriorperiods, ourprovisionforunfundedcredit commitmentswere measure. See “UseofNon-GAAP FinancialMeasures”attheendofourmostrecentquarterlyearnings releaseforfurtherinformationregardingthecalculationandlimitations ofthis Q1 2018 Corporate andFinancialResults Overview 2 May 4,2018 ,2,9 ,1,0 ,4,3 ,0,7 ,5,9 563,702 $ 142,494 575,381 1,951,191 $ $ 155,518 $ 527,779 1,977,600 1,600,173 $ $ $ $ 557,231 1,607,075 1,449,039 $ $ 448,513 $ 1,479,219 1,210,800 $ $ 456,552 $ 441,058 1,428,834 $ 421,208 1,029,294 $ $ $ 472,794 $ 1,370,550 $ 352,549 $ 1,423,412 $ $ 572,239 1,151,660 330,302 $ $ 1,007,981 $ 673,206 $ $ 858,251 $ 698,992 $ 9,6 5,8 ,0,8 ,5,2 ,2,4 421,217 $ 1,423,445 419,863 $ 1,151,726 $ $ 1,420,369 1,007,989 $ $ 1,150,523 265,417 858,284 $ $ 1,006,425 $ $ 1,010,655 699,068 $ 856,595 $ 859,797 $ $ 697,344 779,962 $ $ 700,669 $ 607,602 $ 0321 0521 2017 2016 2015 2014 2013 27418,867 12,714 78%5.1 37%5.0 17%47.09% 46.13% 51.76% 51.11% 53.70% 53.50% 53.77% 52.73% 56.31% 49.04% 57.80% 44.33% ,2 ,8 ,6 ,0 ,7 1,354 3,076 1,203 1,564 1,689 1,724 76 Year endedDecember31, 33 828 8 524 66 813 33 March 31, 1 2018 QTD (32) 9 46 SVB 2014 4:3


 
Q1 2018 Corporate andFinancialResults Overview Find SVB onLinkedIn, Facebook and Twitter on LinkedIn, Facebook and Twitter and Facebook LinkedIn, SVB on Find moleary@svb.com T 408 654 6364 M 650 255 9934 9934 255 650 M 6364 654 408 T 3005 Tasman 95054 CA 3005 Clara, Drive Santa Head of Investor Relations Investor of Head MeghanO’Leary May 4,2018 47 SVB 2014 4:3