#1svb > |svb|> Financial Group G Q2 2019 Corporate Overview and Financial Results Q2 2019 Corporate Overview and Financial Results#2Contents 3 Important information regarding forward-looking statements and use of non-GAAP financial measures 4 Glossary Q2 2019 Financial Highlights 5 18 27 35 48 57 60 Non-GAAP Reconciliations About SVB 2019 Outlook and Long-Term Financial Objectives Financial Performance: Balance Sheet Financial Performance: Income Statement Capital svb> Q2 2019 Corporate Overview and Financial Results 2#3Important information regarding forward-looking statements and use of non-GAAP financial measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance, and are subject to known and unknown risks and uncertainties, many of which may be beyond our control. You can identify these and other forward-looking statements by the use of words such as "becoming," "may," "will," "should," "could," "would," "predict," "potential," "continue," "anticipate," "believe," "estimate," "seek," "expect," "plan," "intend," the negative of such words, or comparable terminology. In this presentation, we make forward-looking statements discussing management's expectations about, among other things: economic conditions; opportunities in the market; outlook on our clients' performance; our financial, credit, and business performance, including potential investment gains, loan growth, loan mix, loan yields, credit quality, deposits, noninterest income, and expense levels; our expected effective tax rate; and financial results, including the performance results of SVB Leerink for certain quarters in, and for the full year 2019, as well as 2020 and beyond. Although we believe that the expectations reflected in these forward- looking statements are reasonable, we have based these expectations on our current beliefs as well as our assumptions, and such expectations may prove to be incorrect. We wish to caution you that such statements are just predictions and actual events or results may differ materially, due to changes in economic, business and regulatory factors and trends. Our actual results of operations and financial performance could differ significantly from those expressed in or implied by our management's forward-looking statements. Important factors that could cause our actual results and financial condition to differ from the expectations stated in the forward-looking statements include, among others: market and economic conditions (including the general condition of the capital and equity markets, and IPO, M&A and financing activity levels) and the associated impact on us (including effects on client demand for our commercial and investment banking and other financial services, as well as on the valuations of our investments); changes in the volume and credit quality of our loans; the impact of changes in interest rates or market levels or factors affecting or affected by them, especially on our loan and investment portfolios; changes in the levels of our loans, deposits and client investment fund balances; changes in the performance or equity valuations of funds or companies in which we have invested or hold derivative instruments or equity warrant assets; variations from our expectations as to factors impacting our cost structure; changes in our assessment of the creditworthiness or liquidity of our clients or unanticipated effects of credit concentration risks which create or exacerbate deterioration of such creditworthiness or liquidity; variations from our expectations as to factors impacting the timing and level of employee share-based transactions; variations from our expectations as to factors impacting our estimate of our full-year effective tax rate; accounting changes, as required by Generally Accepted Accounting Principles (GAAP); and regulatory, tax or legal changes or their impact on us. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, including (i) our latest Annual Report on Form 10-K; (ii) our latest Quarterly Report on Form 10-Q; and (iii) our most recent earnings release filed on Form 8-K. These documents contain and identify important risk factors that could cause the Company's actual results to differ materially from those contained in our projections or other forward-looking statements. All forward-looking statements included in this presentation are made only as of the date of this presentation. We assume no obligation and do not intend to revise or update any forward-looking statements contained in this presentation, except as required by law. This presentation shall not constitute an offer or solicitation in connection with any securities. Use of Non-GAAP Financial Measures To supplement our financial disclosures that are presented in accordance with GAAP, we use certain non-GAAP measures of financial performance (including, but not limited to, non- GAAP core fee income, non-GAAP noninterest income, non-GAAP net gains on investment securities, non-GAAP non-marketable and other equity securities, non-GAAP noninterest expense and non-GAAP financial ratios) of financial performance. These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirement. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures (as applicable), provide meaningful supplemental information regarding our performance by: (i) excluding amounts attributable to non-controlling interests for which we effectively do not receive the economic benefit or cost of, where indicated, or (ii) providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, net income or other financial measures prepared in accordance with GAAP. Under the "Non-GAAP reconciliations" section at the end of this presentation, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP financial measures used in this presentation, or a reconciliation of the non-GAAP calculation of the financial measure. Please refer to that section for more information. Additionally, from time to time, we may make reference to the non-GAAP financial metric of Core EPS in our earnings call and other investor presentations. Non-GAAP Core EPS consists of our net income available to common stockholders less gains or losses on investment securities and equity warrant assets and SVB Leerink, net of tax, divided by our diluted weighted average common shares outstanding. Our management believes this measure to be a useful assessment of our performance as it relates to our core business because it excludes certain financial items where performance is typically subject to market or other conditions beyond our control. A reconciliation of Core EPS to the closest corresponding GAAP svbe Q212019/@brporate Overview and Financial Results inability to provide a quantitative reconciliation to such measure. 3#4Glossary The following terms are used throughout this presentation to refer to certain SVB-specific metrics: Non-GAAP Measures (Please see non-GAAP reconciliations at the end of this presentation for more information) Core EPS-Net income available to common stockholders less gains or losses on investment securities and equity warrant assets and SVB Leerink, net of tax; divided by diluted average common shares outstanding. Our management believes this measure to be a useful assessment of our performance as it relates to our core business because it excludes certain financial items where performance is typically subject to market or other conditions beyond our control. A reconciliation of Core EPS to the closest corresponding GAAP measure is not available with respect to future goals due to our inability to provide a quantitative reconciliation to such measure. Core Fee Income - Fees from letters of credit, client investments, credit cards, deposit service charges, foreign exchange and lending-related fees, in aggregate. In 2019, core fee income includes investment banking revenue and commissions from the acquisition of SVB Leerink, except otherwise noted. Core Operating Efficiency Ratio - Calculated by dividing non-interest expense after adjusting for noninterest expense from SVB Leerink and NCI by total revenue, after adjusting for gains or losses on investment securities and equity warrant assets, SVB Leerink investment banking revenue and commissions and NCI. This ratio excludes income and expenses related to SVB Leerink and certain financial items where performance is typically subject to market or other conditions beyond our control. ● ● Gains (losses) on Investment Securities, Net of Non-Controlling Interests - Net gains on investment securities include gains and losses from our non-marketable and other equity securities, which include public equity securities held as a result of exercised equity warrant assets, gains and losses from sales of our AFS debt securities portfolio, when applicable, and carried interest. This measure excludes amounts attributable to noncontrolling interests for which we effectively do not receive the economic benefit or cost. Other Measures ● Total Client Funds - The sum of on-balance sheet deposits and off-balance sheet client investment funds. Fixed Income Securities - Available-for-sale ("AFS") and held-to-maturity ("HTM") securities held on the balance sheet. Acronyms LIHTC - Low income housing tax credit funds NCI - Non-controlling interests NCO Net charge-off ● ● ● ● VC/PE - Venture Capital/Private Equity NII - Net interest income NIM-Net interest margin svb> Q2 2019 Corporate Overview and Financial Results ● ● ● 4#5Q2 2019 Financial Highlights svb > Q2 2019 Corporate Overview and Financial Results svb > 5#61. 2. Q2 2019: Record quarterly earnings and profitability Strong Q2 growth driven by healthy markets and continued strong execution of our long-term strategy EPS: $6.08 Q2'19 FINANCIAL HIGHLIGHTS Record earnings and profitability $77M Warrant gains; investment gains net of NCI¹ 3% Net interest income growth (vs. Q1) Net Income: $318M $1.0B Loan growth (Average vs. Q1) 28% Core fee income growth ¹,2 (YoY) This is a non-GAAP measure. Please see non-GAAP reconciliations at end of this presentation for more information. Excludes investment banking revenue and commissions svb> Q2 2019 Corporate Overview and Financial Results ROE: 23% $5.5B Client funds growth (Average vs. Q1) Strong & stable Credit quality 6#7The power of the SVB platform MISSION Increase our clients' probability of success VALUES We start with EMPATHY for others. We speak & act with INTEGRITY. We embrace DIVERSE perspectives. We take RESPONSIBILITY. We keep LEARNING & IMPROVING. svb> Q2 2019 Corporate Overview and Financial Results VISION Be the most sought-after financial partner helping innovators, enterprises, and investors move bold ideas forward, fast. STRATEGY Deliver critical solutions, insights and connections to fast-growth innovation enterprises, investors and market influencers to accelerate their growth. STRATEGIC PRIORITIES Enhance Client Experience Improve Employee Engagement & Enablement Strengthen Risk Management Drive Business Unit Growth Propel Business Transformation 7#8Focus on what matters 1. Healthy markets and strong execution driving growth 2. Strong balance sheet growth with NIM headwinds 3. Power of liquidity franchise provides engine for NII growth 4. Proactively managing the impact of a declining rate environment 5. Stable credit and improving risk profile 6. Levers to drive long-term profitability 7. Strategic execution and investment in growth and operating leverage svb> Q2 2019 Corporate Overview and Financial Results 8#9Healthy markets and strong execution set stage for continued growth Robust client acquisition driving share of a growing market 2015-2019 CAGR: 15% (Annualized) Other Private Bank PE/VC VC-Backed Pre- VC-Backed 2015 2016 2017 1,200+ new clients in Q2'19 svb> Q2 2019 Corporate Overview and Financial Results 2018 6/30/19 SVB CLIENT COUNT VC/PE investment fueling 35,000 strong liquidity 30,000 25,000 20,000 15,000 10,000 5,000 0 ● ● ● 2019 VC investment of $66B on track for 2nd highest year on record Record VC-backed exit values $138B Q2 VC exits driven by robust IPO market ● 2019 PE deal values consistent with strong 2018 SVB clients represented 69% of Q2 US VC-backed IPOs Source: 2Q 2019 Pitchbook-NVCA Venture Monitor and Pitchbook 2Q 2019 US PE Breakdown Strong client funnel and acquisition, although competition remains intense 9#10Strong balance sheet growth driving NII with NIM headwinds (1 of 2) INTEREST-EARNING ASSETS Billions Loans, net of unearned income 4.85% $21.2 Cash & Equiv. svb> 4.22% 2017 Fixed Income 1.88% Securities $25.5 $25.6 5.3% 4.77% 2018 $27.6 2.36% $28.4 2018 5.63% 5.10% $26.6 2.58% $29.4 5.65% Overall Q1 2019 Q2 2019 Q2 2019 Corporate Overview and Financial Results 5.01% $28.5 2.57% Loan Yield Loan Yield net of fees and interest recoveries Strong loan growth although mix and competition compressing loan yields ● $0.9B growth in capital call lending (now 50% of loan portfolio vs. soft limit of 55%) and $132M of growth from our Private Bank lending • Competition driving lower pricing on capital call lines, reducing gross loan yield by 9 bps Fixed income yields slightly lower in Q2, with expectation for flat to slightly increasing Fixed Income yields for remainder of 2019 Yield ● Q2 new purchases of $2.6 billion at 2.79% vs. cash-flow maturity yields of 2.25% 2017 Q1 2019 Q2 2019 Strong asset generation, funded by robust client liquidity, but market rates and competition impact asset yields • New purchase yield assumptions for the rest of 2019 declined by approximately 40 bps 10#11Strong balance sheet growth driving NII with NIM headwinds (2 of 2) TOTAL FUNDING SOURCES Billions Non-interest- Bearing Deposits Interest-bearing Deposits Borrowings Other $46.8 0.02% 2017 $53.3 0.06% 2018 $55.0 23% Total Cost of $57.9 Deposits 36% Q1 2019 Q2 2019 * Outlook as of 7/25/19 and does not reflect change in Fed Funds rate on 7/31/19 svb> Q2 2019 Corporate Overview and Financial Results Strong deposit growth but higher mix of interest-bearing deposits drove increase in cost of deposits ● Majority of deposit growth driven by new and deepening relationships with Tech and Life Science clients Expect limited growth in average non- interest bearing balances for rest of 2019 and potential impact from PE fund distributions in Q3/Q4 Total cost of deposits remains low at 36 bps Net interest income outlook* lowered to low teens and net interest margin outlook to 3.60%-3.70% as deposit mix and lower market rates not fully offset by stronger balance sheet growth Flexibility to adjust deposit rates down in a lower rate environment 11#12Proactively managing the impact of a declining rate environment MODEL SENSITIVITY Static Balance Sheet $63M (annualized) Decline in pre-tax net interest income from -25 bps parallel shift Interest Rate Swaps • Converting variable rate loans to fixed ● • $2.0B of notional outstandings as of July 19, 2019, with ability to increase ● Expected performance consistent with our 2019 outlook STRATEGIES IMPLEMENTED TO MANAGE SENSITIVITY: Expectation of stable re- investment rates on investment securities Managing cash balances lower than period-end levels Assumption Differences ● ● Deposit Price Strategy Adapting to declining market rates (deposit beta) EXPECTED OUTCOME Expectation for higher deposit beta (50%-70%) Forecasted Scenario $40-$50M (annualized) Decline in pre-tax net interest income from 25 bps Fed Funds rate decrease Other Strategies Extending maturity on our investment portfolio • Loan floors With the two 25 bps Fed Funds rate decreases in July and September implied by the Forward Curve as of 7/23/19, we would expect 2019 NII growth to be in the low double digits and NIM to be between 3.50% and 3.60% For more information, please refer to our sensitivity analysis included in our most recently filed quarterly 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 June 30, 2019. 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 svb> Q2 2019 Capcomparte Cove, Mielwuzetinde Funsamesisat Rhedslunssand impact of strategies taken by management to mitigate these risks. 12#13Power of liquidity franchise provides engine for net interest income growth Ample low-cost client liquidity ● ● ● Funding strong loan growth svb> With excess held in cash and investment securities ATA • New products to meet client needs and provide additional levers to optimize deposit mix Long-term focus on ROE and EPS Q2 2019 Corporate Overview and Financial Results Long-term financial targets: ROE and EPS growth Strong deposit franchise and deep relationships provide low-cost client liquidity to support balance sheet growth Proven flexibility to drive funding on and off balance sheet to meet short-term needs 13#14Stable credit and improving risk profile Continued growth in and mix shift towards high-quality assets with historically low losses $92M 0.51% 0.27% 2017 PE/PB: 54% ES: 6% Non-performing loans/total-gross loans Net charge-offs/average total gross loans (annualized) Provision for credit losses $88M svb> Q2 2019 Corporate Overview and Financial Results 0.34% 0.22% 2018 PE/PB: 60% ES: 6% Private Equity/ Private Bank and Early Stage as % of Loans $53M 0.33% 0.17% 2019 YTD PE/PB: 61% ES: 6% 14#15Levers to drive profitable growth in a changing rate environment + Expectations for Continued Strong Growth Continued investment in geographic expansion • Enhancement of digital experience to drive client acquisition and deepen relationships • Diversification of business (SVB Leerink) ● Deposit Pricing + Use of products and pricing to reprice and shift excess deposits on or off balance sheet over time svb> Q2 2019 Corporate Overview and Financial Results Strong Capital and Liquidity Position Continued capital accretion provides optionality to invest or return capital to investors + Leveraging Investments in Scalability Investments in people and systems to enable continued growth at lower cost We believe we can continue to deliver strong profitability, improve operating efficiency and drive investment in our business in a lower rate environment 15#16Continued execution on our strategy through investment in growth and operating leverage Enhance Client Experience Improve Employee Enablement KEY INVESTMENTS New opportunities for revenue growth ● Expanding product offerings • Improving product penetration • Extending platform globally ● • Expanding Private Bank and Wealth Advisory Enhance Risk Management svb> Q2 2019 Corporate Overview and Financial Results Drive Scalable Long-term Growth Drive Revenue Growth Transformation of business processes and implementation of scalable solutions • Enhance client experience Improve employee enablement Enhance risk management • Optimizing cost efficiencies ● • Improving long-term growth efficiency ● 16#17Q2 summary: continued strong performance, positive outlook and long-term growth ● ● Strong performance driven by healthy markets and effective execution Exceptional client liquidity provides the foundation for continued long- term growth * Proactive balance sheet management to adapt to changing rates Stable credit with disciplined credit risk management Continued investment in revenue growth and operating leverage will drive long-term growth Outlook* Changes Average Deposit Growth % Neenthhaneges Cheondime EQpadiverthc%e Nincs mengin Prior (April 2019) Highsingie agts Imp Mo id-temen sayee Enablement h3.70% -30% Enablement New (July 2019) LowManagement double digits Endwansfer Risk 3.60% -3.70% Outlook as of 7/25/19 and does not reflect change in Fed Funds rate on 7/31/19 svb> Q2 2019 Corporate Overview and Financial Results 17#18About SVB svb > Q2 2019 Corporate Overview and Financial Results I PAN 18#19SVB: A unique financial services company Over 35 years of focus on innovation companies, investors and influencers Robust client funds franchise Strong market position Diversified revenue streams Global presence $61B assets $29B loans $143B total client funds Average balances for Q2'19 svb> Q2 2019 Corporate Overview and Financial Results 19#2024 Kank MARCIANA Technology + Life Science & Healthcare Accelerator (Early Stage) Revenue <$5M Growth Revenue $5M-$75M We serve the global Innovation Economy svb> Q2 2019 Corporate Overview and Financial Results Corp Fin Revenue > $75M Investors Private Equity Venture Capital Individuals Influencers: Entrepreneurs, Investors, Executives 20#21Serving innovative companies and the investors and individuals behind them Silicon Valley Bank Global commercial banking for innovators, enterprises and investors svb > Financial Group SVB Capital Private venture investing expertise, oversight and fund management svb> Q2 2019 Corporate Overview and Financial Results SVB Private Bank/Wealth Advisory Private banking and investment strategies for influencers in the innovation ecosystem SVB Leerink Investment banking services focused on healthcare and life science companies 21#22A strong, seasoned management team Average tenure of 13 years at SVB Diverse experience and skill sets to help direct our growth Greg Becker PRESIDENT AND CEO SVB FINANCIAL GROUP 26 years at SVB ● Dan Beck CHIEF FINANCIAL OFFICER 2 years at SVB John China PRESIDENT OF SVB CAPITAL* 23 years at SVB Michelle Draper CHIEF MARKETING OFFICER 6 years at SVB Michael Zuckert GENERAL COUNSEL 5 years at SVB * Effective May 1, 2019 svb> Q2 2019 Corporate Overview and Financial Results Phil Cox CHIEF OPERATIONS OFFICER 10 years at SVB Chris Edmonds-Waters CHIEF HUMAN RESOURCES OFFICER 15 years at SVB Marc Cadieux CHIEF CREDIT OFFICER 27 years at SVB Mike Descheneaux PRESIDENT SILICON VALLEY BANK 13 years at SVB Laura Izurieta CHIEF RISK OFFICER 3 years at SVB 22#23svb Q2 2019 Corporate Overview and Financial Results 23 the future." Our Mission: Increase Our Clients' Probabi We achieve more by working together than we ever do sound business. To us, doing right goes beyond e status quo and dream big, always askingevond follow move bold ideas forward fast. We're all SVB. We're all in and clients. We're solute to the in every step of the journey. UNITED In it together. We achieve more by working together than we ever do on our own. The team-clients E J Success Our Vision: wn. The team-clie pee ght after financial ammates-comes ut the integrity, our inner drive, mates-comes we give our clients w what other banks pro brace u Overview of ibility. We sta the pulse of our clients' industries. Experience, insight, expertise. We're all in. W Just because we haven ne it in the past doesn't mean we shouldn't do it in the future." Our Mission: I Our Vision: Be the most sought after financial partner helping innovators, en investors ts' Probability of ideas forward innovators, results our connections, insigh reneur spirit. en we're united, we reach success. Growth, clients need, and we have the skills and flexibili thing we and in- forward, deliver service with passion, sets us an entrep- connections Partnership they need when they need it. The partner you trust to make things happen: 1. We go beyond e. We partnerships. Our high level of service empowers our clients to achieve their strategic hinking, and we're always pushing to find new solutions to client problems. 2. Our move bold do helps vestors fast. What They know they can rely on tise to guide them at anking differently. Our clients move bold#24Key performance indicators Average Loans, Average Total Client Funds net of unearned income $ Billion 5 Millions I$ $14.8 2015 $1,006 2015 $18.3 2016 $21.2 2017 $1,151 2016 Net Interest Income $1,894 $25.6 $1,420 2017 2018 YTD 6/30/19 $28.9 $1,042 2018 YTD 6/30/19 Billions $ $ Millions $82.2 $75.5 $36.3 $38.8 $39.2 $43.4 2015 $265 2015 2016 $316 $123.2 $48.1 $94.2 $42.7 $51.5 2016 2017 Core Fee Income $75.1 Avg. Deposits Avg. Client Investment Funds $379 2017 $139.8 $51.3 2018 YTD 6/30/19 $88.5 $516 $439 $127 $312 2018 YTD 6/30/19 5 Millions $ Investment Banking & Commissions (SVB Leerink) Core Fee Income, excluding SVB Leerink 2.57% 2015 $780 2015 Net Interest Margin 2.72% 2016 $860 3.05% 2016 2017 Noninterest Expense $1,011 2017 3.57% *SVB Leerink includes total revenue of $135.8M consisting of interest income, noninterest income from investment banking and commissions and investment security gains from SVB Leerink Capital business. SVB Leerink pre-tax income, net of NCI, of $13.3M was recognized through June 30, 2019. svb> Q2 2019 Corporate Overview and Financial Results 2018 YTD 6/30/19 3.74% $1,188 $749 $122 $627 2018 YTD 6/30/19 SVB Leerink Expenses SVB Expenses, excluding SVB Leerink 24#25Quarterly highlights Diluted earnings per share Net income available to common stockholders Average assets Change Average loans Change Average deposits Change Average off-balance sheet client investment funds Change Average fixed income securities Net interest margin Net interest income GAAP non-interest income Non-GAAP non-interest income, net of non- controlling interests¹ Non-interest expense Net charge-offs / Average total gross loans (annualized) Effective tax rate² Return on average SVBFG stockholders' equity (annualized) Return on average assets (annualized) 1) 2) Q2'18 $4.42 $237.8M $54.4B 3.8% $24.9B 4.4% $48.0B 4.0% $71.3B 10.8% $25.2B 3.59% $466.4M $192.7M $183.2M $305.7M svb> Q2 2019 Corporate Overview and Financial Results 0.22% 24.53% 20.82% 1.75% Q3'18 $5.10 $274.8M $56.5B 3.9% $26.3B 5.9% $49.1B 2.3% $79.6B 11.6% $25.5B 3.62% $493.2M $210.1M $203.4M $309.4M 0.30% 25.75% 22.46% 1.93% Q4'18 $4.96 $266.3M $57.6B 1.9% $27.5B 4.4% $49.1B -% $85.0B 6.9% $24.5B 3.69% $514.5M $186.7M $177.9M $307.6M 0.20% 28.28% 20.61% 1.83% Q1'19 $5.44 $288.7M $57.5B (0.2)% $28.4B 3.3% $49.7B 1.3% $87.4B 2.8% $22.1B 3.81% $512.9M $280.4M $277.1M $365.7M 0.11% 27.12% 22.16% 2.04% Q2'19 $6.08 $318.0M $60.7B 5.5% $29.4B 3.6% $53.0B 6.5% $89.7B 2.6% $23.1B 3.68% $529.4M $333.8M $315.0M $383.5M 0.23% 27.25% 23.29% 2.10% Please see non-GAAP reconciliations at end of this presentation for more information. Our effective tax rate is calculated by dividing income tax expense by the sum of income before income tax expense and net income attributable to noncontrolling interests. 25#26Annual highlights Diluted earnings per share Net income available to common stockholders Average assets Change Average loans Change Average deposits Change Average off-balance sheet client investment funds Change Average fixed-income securities Net interest margin Net interest income GAAP non-interest income Non-GAAP non-interest income, net of non- controlling interests¹ Non-interest expense GAAP operating efficiency ratio Net charge-offs / Average total gross loans Effective tax rate² Return on average SVBFG stockholders' equity 2015 $6.62 $343.9M $40.8B 23.9% $14.8B 28.3% $36.3B 28.2% $39.2B 30.6% $22.3B 2.57% $1,006.4M $472.8M $441.1M $780.0M 53.50% 0.30% 39.95% 11.18% 2016 $7.31 $382.7M $44.0B 7.7% $18.3B 23.8% $38.8B 6.8% $43.4B 10.5% $21.5B 2.72% $1,150.5M $456.6M $448.5M $859.8M 51.11% 0.46% 39.55% 10.90% 2017 $9.20 $490.5M $48.4B 10.0% $21.2B 15.7% $42.7B 10.3% $51.5B 18.8% $22.4B 3.05% $1,420.4M $557.2M $527.8M 0.87% $1,010.7M 45.02% 0.27% 42.02% 12.38% 2018 $18.11 1.01% $973.8M $55.2B 14.2% $25.6B 21.1% $48.1B 12.5% $75.1B 45.7% $24.8B 3.57% $1,894.0M $745.0M $707.0M $1,188.2M 45.02% 0.22% 26.52% 20.57% YTD 6/30/19 $11.51 1.76% $606.7M $59.1B 7.1% $28.9B 12.9% $51.3B 6.7% $88.5B 17.8% $22.6B 3.74% $1,042.3M $614.1M $592.1M $749.2M 45.23% 0.17% Return on average assets 0.84% 1) 2) Please see non-GAAP reconciliations at end of this presentation for more information Our effective tax rate is calculated by dividing income tax expense by the sum of income before income tax expense and net income attributable to noncontrolling interests. Included in 2017 is $37.6M of additional income tax expense due to the revaluation of deferred tax assets and investments in low income housing tax credit funds following tax reform. svb> Q2 2019 Corporate Overview and Financial Results 27.19% 22.74% 2.07% 26#272019 Outlook and Long- Term Financial Targets svb> Q2 2019 Corporate Overview and Financial Results 27#282019 full-year outlook¹ Business Driver Average loans Average deposits Net interest income Net interest margin Allowance for loan losses for total gross performing loans as a % of total gross performing loans Net loan charge-offs Non-performing loans/total gross loans Core fee income² Non-interest expense (excluding expenses related to non-controlling interests)² Core fee income with investment banking activities2,3 2019 Full Year Outlook vs. 2018 Full Year Results (7/25/19) Increase at a percentage rate in the mid teens Non-interest expense with investment banking activities2,3 Increase at a percentage rate in the low double digits Increase at a percentage rate in the low teens Between 3.60% and 3.70% Comparable to 2018 levels Between 0.20% and 0.40% of avg. total gross loans Between 0.30% and 0.50% of total gross loans Increase at a percentage rate in the low twenties Increase at a percentage rate in the low teens Increase at a percentage rate in the low seventies Change from 4/25/19 No change No change Between 26.0% and 28.0% No change Effective Tax Rate Current full year 2019 outlook compared to 2018 results, including expected results of SVB Leerink reflective of the completed acquisition on January 4, 2019 No change Outlook increased to low double digits from previous outlook of high single digits Outlook decreased to low teens from previous outlook of mid teens Increase at a percentage rate in the mid thirties Outlook decreased to between 3.60% and 3.70% from previous outlook of between 3.70% and 3.80% No change No change No change No change 1) As of 7/25/2019; compared to full-year 2018 results; assumes no rate changes and non-inclusive of rate decrease announced by the Fed on 7/31/19; please see our most recent earnings release for complete information on management's assumptions and forecasts regarding this outlook. Non-GAAP measure. 2) 3) No change Current full year outlook for 2019 compared to full-year 2018 results, including expected results of SVB Leerink reflective of the completed acquisition on January 4, 2019. svb> Q2 2019 Corporate Overview and Financial Results 28#29Focus Area: Ongoing investments in growth and efficiency 10f1 of Investing to improve operating leverage and support our growth through systems, tools, processes, analytics and people Enhance Client Experience Engage with clients in more meaningful ways Streamline and speed key processes O Improve Employee Enablement O Help employees optimize their performance Minimize time spent on non- value add activities Enhance Risk Management svb> Q2 2019 Corporate Overview and Financial Results Support timely, resolution of issues Enhance data quality and governance frameworks Drive Scalable Long-term Growth Target Outcomes Expanded product offerings with new opportunities for revenue growth Improved future operating leverage through transformation of key business processes and implementation of scalable solutions 2020 expense growth rate target: high single digits Optimize cost efficiencies Improve long- term growth efficiency Drive Revenue Growth Expand product offerings to address evolving client needs Improve product penetration Extend platform to Germany and Canada Expand Private Bank and Wealth Advisory 29#30Focus Area: Leveraging client liquidity SVB's deposit franchise is a competitive advantage Client operating accounts make up the majority of our deposits (noninterest bearing deposits 71% of period-end total deposits) Deposit costs rising but remain meaningfully lower than peer costs Low loan-to-deposit ratio of 55.5% ● ● 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% ** 0.36 0.38 0.41 0.45 0.49 0.49 0.53 0.58 0.61 0.55 051 0.42 0.39 0.39 0.42 0.46 0.23 0.34 SIVB CBSH CFR MTB** CMA SVB Cost of Total Deposits vs. Peers* svb> Q2 2019 Corporate Overview and Financial Results ZION RF WBS 0.65 0.66 0.73 0.81 0.81 0.70 0.66 0.60 0.56 BOKF** NTRS** FRC HBAN UMPQ 0.75 KEY 1.07 1.11 1.05 ASB 1 of 3 1.63 1.19 1.53 1.14 Q1'19 Q2'19 Increase (Decrease) * "Peers" refers to peer group as reported in our proxy statement and are subject to change on an annual basis. Peer data is based on the most recently available Q2'19 and Q1'19 cost of total deposits as reported by S&P Global Market Intelligence. Where Q2'19 data was not available as of July 29, 2019, Q1'19 compared to Q4'18 cost of total deposits was reported. EWB SBNY C NYCB** 30#31Focus Area: Leveraging client liquidity 2013 of ● ● ● ● Billions Market demands and competition driving higher deposit costs Strategic deposit initiatives driving on-balance sheet deposit growth Interest-bearing deposit costs increased 29 bps in Q2'19, driven by deposit growth initiatives, representing $19 million in additional interest expense Full year average deposit costs expected between 30 and 40 bps, subject to market demand for our interest-bearing products $175 $150 $125 $119 $71 $100 $75 $50 Average Total Client Funds $25 $0 $129 $80 $134 $137 $143 $85 $87 $90 $40 $41 $40 $38 $8 $8 $9 $11 Q2'18 Q3'18 Q4'18 Q1'19 Average interest-bearing deposits Average noninterest-bearing deposits Average off-balance sheet client funds svb> Q2 2019 Corporate Overview and Financial Results $38 $15 Q2'19 Interest-Bearing Deposit Cost and Spread on Client Investment Funds 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.31% 0.2% 0.0% 0.38% 0.48% 0.98% 1.27% -0.17% 0.18% 0.19% 0.21% 0.20% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Cost of interest-bearing deposits Spread on client investment fees 31#32Focus Area: Leveraging client liquidity Liquidity strategy for 2019 • Fund loan growth O Billions O O O Capture higher investment portfolio yields through reinvestment of portfolio cash flows and new investments Anticipated investment portfolio purchases of $1.5B- $2.0B per quarter Purchase yields estimated at 2.30% - 2.40%, with roll-off yields of 2.00% - 2.10% (assuming rates as of July 25, 2019) $1.3 $2.2 Q2'18 Investment Portfolio Activity (Cash-Flows, Sales and Purchases) $0.0 $1.3 $0.8 Q3'18 $0.0 Portfolio cash-flows $1.3 svb> Q2 2019 Corporate Overview and Financial Results $0.5 $0.0 Q4'18* Portfolio purchases $0.5 $0.2 $1.2 Q1'19* Portfolio sales * During Q4'18 and Q1'19 the majority of portfolio cash flows were used to fund loan growth and repay short-term borrowings. $0.7 3 of 3 $2.6 Q2'19 We are refining our approach over time to balance client liquidity needs and market demand with anticipated returns on short- and medium-term investments. $1.0 32#33Focus Area: Reducing interest rate sensitivity 10f1 of What we're doing Adding "Receive Fixed" interest rate swaps to convert variable-rate loans to fixed Adapting to declining market rates (deposit beta) Gradually extending maturity in our investment securities portfolio Implementing loan rate floors to preserve income when rates fall ● ● ● % Change from Base -8% -10% -12% -14% -16% -18% -15.7% -100 bps Interest Rate Shock (NII Sensitivity)* 12/31/17 14.0% svb> Q2 2019 Corporate Overview and Financial Results 12-18 month rate sensitivity target: <10% with -100 bps shock -13.7% -12.9% 6/30/18 -13.3% 9/30/18 3/31/18 6/30/19 * These sensitivity estimates are reported on a pre-tax basis and are based on a static balance sheet and assumptions as of each period presented. For June 30, 2019 beta assumptions were increased from 35 percent to 60 percent, reflective of our higher realized beta on deposit rates paid to our clients. 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. NII sensitivity decreased in Q2'19 due to higher deposit beta assumptions 12/31/18 -14.4% -12.4% 3/31/19 33#34Long-term financial objectives ¹,2 Strong, sustainable, smart growth ROE -15% in low rate environment ~20% in a normalized rate environment Core ~10% growth in a flat rate EPS³ environment -20% growth in a rising rate environment Asset Sensitivity <10% in down 100 bps scenario >10% in up 100 bps scenario 1) 2) 3) Investments in growth & improved operating leverage Normalized Rates Mid-40% Core Efficiency Ratio³ Low Rates Mid-50% Core Efficiency Ratio Strong Capital & Liquidity Bank Tier 1 Leverage ratio ~7-8% Loan-to-Deposit ratio <70% Excludes impact of SVB Leerink revenue and expense Normalized rate environment represents Fed Funds rate above 2.5%, low rate environment represents Fed Funds at or below 2.5% Non-GAAP measure svb> Q2 2019 Corporate Overview and Financial Results 34#35NYSE = Storage (PSA) 2 OGL) 1062.72 19 svb 88.58 NTS AWAY ICHANGE % CHANGE CNBC 1:57 EASTERN DOW 23,977.74 +302.10 88.88 Q2 2019 Corporate Overview and Financial Results 89.66 BREAKING NEWS AWAITING FOMC RATE DEC Financial Performance (Balance Sheet) TOP NEWS hotel 35 114#36A high quality balance sheet At 6/30/2019 Net loans $28.9¹ 45% Other $2.0, 4% 1) 2) Non-marketable securities² (VC & LIHTC Investments) $1.1, 2% Fixed income securities (AFS) $7.9 12% Fixed income securities (HTM) $14.9 23% Cash $9.0 14% Borrowings $0.7, 1% svb> Q2 2019 Corporate Overview and Financial Results Interest- bearing deposits $16.3 28% Other $1.8 3% Non-interest- bearing deposits $39.3 68% Period-end assets: $63.8B Period-end liabilities: $58.1B Net loans represents gross loans net of the allowance for loan losses and unearned interest income. Gross loans at 6/30/2019 were $29.4B Non-marketable securities net of non-controlling interests were $931 million. Please see non-GAAP reconciliations at end of this presentation for more information. 36#37Robust balance sheet growth Billions Strong growth in loans and securities Period-End Assets $70 $60 $50 $44.7 $44.7 $40 $30 $20 $10 $0 $51.2 $56.9 $63.8 2015 2016 2017 2018 6/30/19 Cash and cash equivalents Available-for-sale securities Held-to-maturity securities Non-marketable securities (primarily VC & LIHTC investments) Net loans Other assets svb> Q2 2019 Corporate Overview and Financial Results Billions Non-interest-bearing deposits 71% of total deposits $60 $50 $40 $30 $20 $10 $0 Period-End Liabilities $41.4 $40.9 2015 2016 $46.9 $51.7 $58.1 2017 2018 6/30/19 Non-interest-bearing deposits Interest-bearing deposits Borrowings Other liabilities 37#38Total Client Funds Contributions by Niche at 6/30/19 Early-Stage Life Science & Healthcare 9% Early-Stage Technology 27% Technology 14% Deposits Life Science & Healthcare 3% International 23% svb> Q2 2019 Corporate Overview and Financial Results Private Bank 2% U.S. PE/VC 20% Other 2% Off-Balance Sheet Client Investment Funds 1 Early-Stage Life Science & Healthcare 21% Early-Stage Technology 20% U.S. PE/VC 11% Technology 31% Life Science & Healthcare 13% International 2 3% Private Bank 1% 1. Deposit and off-balance sheet client investment funds balances by portfolio is a management view of client niches. 2. International balances is a management view of client niches and does not tie to regulatory definitions for foreign exposure. International balances include clients across all client niches and life-stages, with International PE/VC representing 9% of total deposits and 2% of off-balance sheet client investment funds. 38#39Q2'19: A high-quality investment portfolio Liquid, primarily fixed-income portfolio, with a duration of 3.5 years U.S. Treasuries make up 21% of investment portfolio Available lines of credit in place to provide short-term liquidity Billions ● ● $20 $15 $10 $5 $0 Available-for-Sale Securities (Period-End) $16.4 2015 $12.6 $11.1 2016 2017 $7.8 $7.9 2018 6/30/19 U.S. Treasury securities U.S. agency debentures Agency-issued collateralized residential mortgage-backed securities - fixed rate Agency-issued collateralized residential mortgage-backed securities - variable rate svb> Q2 2019 Corporate Overview and Financial Results Billions $20 $15 $10 $5 $0 Held-to-Maturity Securities (Period-End) $8.8 $8.4 $12.7 $15.5 $14.9 2015 2016 2017 2018 6/30/19 Agency-issued residential mortgage-backed securities Municipal bonds and notes Agency-issued commercial mortgage-backed securities 39#40Q2'19: average loans grew 3.6% Growth driven primarily by Private Equity and Private Bank Billions $30 $25 $20 $15 $26.0 $24.9 Q2'18 $27.5 svb> Q2 2019 Corporate Overview and Financial Results $26.3 Q3'18 ■ Average loans $28.3 $27.5 Q4'18 $28.9 $28.4 Q1'19 Period-end loans $29.2 $29.4 Q2'19 40#41Q2'19: A diversified loan portfolio Gross Loans: $29.4 billion¹,2 Private Bank $3.3 11% Premium Wine $1.0 3% Other $0.6 2% Private Equity/ Venture Capital³ $14.7 50% Software/ Internet $6.0, 21% svb> Q2 2019 Corporate Overview and Financial Results Technology and Life Science/Healthcare Only $9.8 billion (34% of Gross Loans) Hardware $1.3,5% Life Science/ Healthcare $2.5, 8% Early Stage $1.7 (6%) 1) 2) Non-Early Stage $1.7 (5%) Balance Sheet $2.2 (8%) Sponsored Buyout $1.9 (7%) Other $2.3 (8%) Investor-dependent 1 Revenue: $0-$5M Investor-dependent 2 Revenue >$5M Balance-sheet dependent covered by current assets; $0.9B is asset-based lending Cash flow dependent 1 Cash flow dependent 2 Cash flow and hybrid As of 6/30/2019; gross loans do not include deferred fees and costs. Private Bank includes loans designated as Consumer Loans (including real estate secured loans) in our earnings releases and our Form 10-K and 10-Q reports. 3) Primarily capital call lines of credit 41#42Our loan portfolio has evolved over time • Private Equity has driven the majority of recent growth Our Private Equity portfolio has historically been characterized by lower yields, relative to the rest of our portfolio, and exceptional credit quality Billions $30 $25 $20 $15 $10 $5 $0 11% $4.5 $1.4 $0.9 2009 10% $5.5 $1.8 $1.0 2010 8% $7.0 9% $2.5 $8.9 Loans, net of unearned income 9% $10.9 svb> Q2 2019 Corporate Overview and Financial Results $4.1 $3.3 $1.7 $2.4 2011 2012 2013 2014 Private equity/venture capital Software/internet Private Bank Life science/healthcare 8% $14.4 $1.1 $1.3 $1.3 $5.0 $4.6 $16.7 $1.1 $1.7 $1.8 $5.4 $5.5 2015 $19.9 $1.2 $1.9 $2.2 $5.6 $7.7 $23.1 $1.2 $1.8 $2.6 $6.2 $10.0 2016 2017 $28.3 $1.2 $2.4 $3.0 $6.2 6% $14.1 $29.2 12% $1.3 $2.4 $3.3 Hardware Premium wine Other Early-stage loans as % of loan portfolio $6.0 6% $14.7 10% 8% 6% 4% 2% 0 2018 6/30/19 % Early-stage loans as % of loan portfolio 42#43Loans >$20M are primarily Private Equity capital call lines, which have a history of exceptional credit quality Capital call lines have maturities of <1 year and are secured by contractual capital commitments and the invested assets of the fund borrowers Billions $15 $10 $5 $0 $1.0 2009 Gross loans to any single client equal to or greater than $20 million $1.3 2010 $2.2 2011 $3.1 svb> Q2 2019 Corporate Overview and Financial Results $4.2 $1.6 $1.5 $1.1 $1.0 2012 2013 Private equity/venture capital Software/internet Life science/healthcare Hardware $6.2 $1.9 $6.8 2014 $1.9 $3.1 $3.6 $8.9 Private Bank Premium wine Other $1.9 $5.3 $10.5 $2.2 $6.8 $14.5 $14.8 $2.3 $2.1 $10.1 $10.5 2015 2016 2017 2018 6/30/19 43#44Private Equity capital call lines: High growth, diversification, low credit risk ● ● High-quality, strong underwriting Strong secondary markets VC Funds PE/VC Fund Commitments by Investment Style and Industry* PE - Debt PE - Real Estate PE - Other 7% 15% Investment Style PE - Buyout 8% 20% 6% 18% 26% PE Fund of Funds PE - Growth Energy Infrastructure atural Resources FinTech Life Sciences Real Estate Other 4% 9% Industrial 9% *PE/VC portfolio by investment style and industry is based on fund commitments as of 6/30/2019 svb> Q2 2019 Corporate Overview and Financial Results 11% Industry 3% 11% Debt 35% 14% Technology Consumer 44#45Q2'19: Credit quality remained stable Provision for credit losses of $23.9M (vs. 28.6M in Q1) Allowance for loan losses/total gross loans: 1.03% (vs. 1.03% in Q1) Non-performing loans decreased following full repayment of our two largest non-performing loans ● ● ● Millions Millions $150 $100 $50 $0 $20 $15 $10 $5 $0 $125.3M 0.48% Q2'18 $13.5M 0.22% $115.3M Q2'18 0.42% Non-performing loans/total gross loans Q3'18 $20.0 M 0.30% Q3'18 $96.1M svb> Q2 2019 Corporate Overview and Financial Results 0.34% Q4'18 $13.9M 0.20% Q4'18 $135.8M 0.47% Q1'19 Total non-performing loans $7.6M 0.11% Q1'19 Net charge-offs/average total gross loans (annualized) Net charge-offs $96.8M 0.33% Q2'19 $16.6M 0.23% Q2'19 1.0% 0.5% 0.0% 0.3% 0.2% 0.1% 0.0% 45#46History of high credit quality and resilience through market cycles 4% 3% 2% 1% 0 % -1% 3.32% 1.07% 2000 Loan Portfolio Statistics 2001 2002 2003 2004 2000 48% Technology 30% Early-Stage % of total loans 2005 2006 2007 svb> Q2 2019 Corporate Overview and Financial Results 2008 2.64% 1.15% 2009 2010 2011 2007 47% Technology 14% Early-Stage % of total loans 2012 2013 2014 Nonperforming loans as a % of total gross loans Net charge-offs as a % of average total gross loans 2015 2016 2017 2018 0.33% 2018 26% Technology 6% Early-Stage % of total loans 0.23% 6/30/19 46#47Expanding international business activity Billions Billions Millions $5 $2 $1 $16 $14 $12 $10 $8 $6 $4 $2 $0 $75 $60 $45 $30 $15 $1.5 2016 $7.7 $1.11 2016 $28.6 Average Loans 2016 $1.9 Average Client Investment Funds 2017 $9.1 $1.4 $7.7 $2.8 $33.8 2018 2017 Core Fee Income 2017 $12.8 $2.4 $10.4 2018 $54.0 2018 $3.7 svb> Q2 2019 Corporate Overview and Financial Results YTD'19 $13.6 $2.6 $11.0 YTD'19 $29.9 YTD'19 Off-balance sheet client funds Deposits Location U.K. Israel China Description Full service branch Business development and representative office Business development office (Beijing) SPD Silicon Valley Bank (joint venture, offices in Shanghai, Beijing, Shenzhen) Hong Kong Germany Branch (lending) Representative office Canada Branch (lending) Year opened 2012 2008 2005 2012 2013 2018 2019 This slide reflects balances for international operations in U.K., Europe, Israel and Asia; Canada balances are reflected in our U.S. Technology Banking segmentation. The above is a management segment view and does not tie to regulatory definitions of foreign exposure 47#48Financial Performance (Income Statement) svb> Q2 2019 Corporate Overview and Financial Results 10000 K 48#49Q2'19: Net interest income increased 3.2% Higher average loans and yields were offset by higher deposit costs Millions $600 $500 $400 $300 $200 $100 * $0 Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 % Q2'16 Q2'19 Net interest income* Net interest margin Federal Funds target rate Net interest income is presented on a fully taxable equivalent basis to consistently reflect income from taxable loans and securities and tax-exempt securities based on the federal statutory tax rate (35 percent for periods prior to 2018 and 21 percent after 12/31/17) svb> Q2 2019 Corporate Overview and Financial Results 6% $532.3 3.68% 3% 2.50% 0 Q2'17 Q2'18 49#50Strong funding and exit markets driving recent strong investment securities and warrant gains¹ Millions $160 $140 $120 $100 $57.3 $80 $60 $40 $20 1. 2. $71.0 2015 $43.4 $37.9 2016 $35.4 $54.6 2017 $49.9 $89.1 $54.7 $69.7 2018 YTD 6/30/19 Net gains on equity warrant assets Non-GAAP net gains on investment securities net of non-controlling interests² svb> Q2 2019 Corporate Overview and Financial Results Millions $100 $80 $60 $40 $20 $0 $26.4 $19.1 $25.6 $34.1 $16.7 $25.6 $21.3 $29.1 $48.3 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Net gains on equity warrant assets Non-GAAP net gains (losses) on investment securities net of non-controlling interests The gains (or losses) resulting from changes in valuations (fair values) of investment securities within our nonmarketable and other equity securities portfolio and equity warrant assets are currently unrealized. The extent to which such gains (or losses) will become realized are subject to a variety of factors including, among other things, performance of the underlying portfolio companies, investor demand for IPOs, fluctuations in the underlying valuation of these companies, levels of M&A activity, and legal and contractual restrictions on our ability to sell the underlying securities. Please see non-GAAP reconciliations at end of this presentation for more information. 50#51Net warrant gains have more than offset early-stage charge-offs over time Millions $300 $250 $200 $150 $100 $50 $0 $(3) -$50 -$100 $(13) $(1) 2002 $8 $3 $0$3 Aggregate warrant gains net of early-stage losses (2002 - YTD 6/30/19) 2003 2004 $22 $23 2005 $(2) $(7) $(10) $(16) 2006 2007 $11 svb> Q2 2019 Corporate Overview and Financial Results 2008 $7 $(58) 2009 $37 $(23) 2010 $19 $(1) 2011 2012 $46 $(21) $71 $71 $55 $38 wil $(12) $(45) $(35) $(28) $(26)$(30) 2013 2014 2015 Net gains on equity warrant assets Early-stage net charge-offs Cumulative net gains (warrants less early-stage NCOs) 2016 $89 2017 $239M 2018 $70 $(5) YTD 2019 51#52Q2'19 core fee income grew 2.0% (excluding investment banking income) and is up 28% YoY Growth drivers: Millions ● ● ● Higher client investment fees from higher fund balances and rate increases Fee growth from strong transaction volumes and client engagement across products Includes investment banking revenue and commissions from 2019 Leerink acquisition $250 $200 $150 $100 $80.5 $84.6 $82.6 $87.3 $50 $0 $102.7 $106.4 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Foreign exchange fees Deposit service charges Client investment fees Investment banking revenue and commissions svb> Q2 2019 Corporate Overview and Financial Results $115.0 $123.1 Q1'18 Q2'18 Credit card fees $131.7 $146.0 $9 $11 $44 $46 $14 $11 $21 $22 $27 $29 $38 $39 Q3'18 Q4'18 Q1'19 Q2'19 Lending related fees Letters of credit/Standby LOC $218.1 $220.5 $64 $63 52#53A history of strong core fee income growth Broad based growth across core fee income products: Client investment fee growth from higher fund balances and rate increases F/X and credit card volume growth, partially offset by lower competitive spreads Investment banking revenue and commissions from Leerink acquisition Millions ● ● ● $600 $500 $400 $300 $200 $100 $0 $265 2015 Foreign exchange fees Deposit service charges Client investment fees $316 2016 Investment banking revenue and commissions svb> Q2 2019 Corporate Overview and Financial Results $379 2017 Credit card fees $516 $35 $130 $42 $76 $94 $139 2018 Lending related fees Letters of credit/Standby LOC $439 $127 $90 $56 $77 YTD 6/30/19 53#54Investment in growth and operating leverage driving non-interest expense Revenue and growth investment initiatives: Client experience People (staffing, enablement, performance-based incentive compensation) Infrastructure improvements (banking, risk & compliance) $ Millions 1. 2. ● ● 2,004 $474 $138 $122 $214 Compensation and Benefits Expense 2015 2,225 $514 $150 $120 $244 2016 Salaries/wages and other employee comp. 2,396 $606 $184 Other employee incentives/benefits $145 $277 2017 2,685 $727 $195 $207 $325 3,257¹ svb> Q2 2019 Corporate Overview and Financial Results $481 $131 $143 $207 2018 YTD 6/30/19 Incentive comp. plans Avg. full-time equivalent employees Millions $307 $97 $40 $35 $52 $83 2015 Other Noninterest Expenses $404 $120 $42 $48 $72 $346 $105 $40 $40 $66 $95 $122 2016 Professional svcs. 2017 $461 $121 $48 $55 $78 $159 Net occupancy Other expenses² 2019 includes 231 full-time equivalent employees from SVB Leerink Includes costs for FDIC and state assessments, correspondent bank fees, lending and other client-related processing, telephone, data processing and other expenses; please see our quarterly filings for more information. $78 2018 YTD 6/30/19 $268 $79 Premises & equip. Business dev. 54#55Core operating efficiency ratio* has trended down over time, driven by strong revenue growth Billions $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 $1.5 2015 * Non-GAAP measure 60.5% 52.7% $0.8 $1.6 2016 53.5% $0.9 GAAP Total revenue svb> Q2 2019 Corporate Overview and Financial Results $2.0 GAAP Operating efficiency ratio 55.1% 51.1% $1.0 2017 $2.6 45.0% $1.2 2018 45.1% $1.7 45.2% $0.7 YTD 6/30/19 GAAP Noninterest expense Core Operating efficiency ratio* .60% 40 % 20% 0 % 55#56Industry-leading ROE Increase in 2019 ROE primarily from strong balance sheet growth and market activity resulting in higher earnings 24% 22% 20% 18% 16% 2. 14% 12% 10% 8% 6% 11.18% 8.17% 2015 10.90% 8.83% 2016 SVB ROE svb> Q2 2019 Corporate Overview and Financial Results 12.38% 9.77% 2017 Peers¹ 20.57% 12.76% 2018 22.74% 12.57% 1. "Peers" refers to peer group as reported in our proxy statements specific to the years reported and are subject to change on an annual basis. Peer ROE is the average of our peer group using data from S&P Global Market Intelligence. Annualized YTD 6/30/19² 56#57svb> Capital Q2 2019 Corporate Overview and Financial Results 57#58We are well capitalized - Holding Company $500M Share Repurchase Program authorized in November 2018 and completed on July 1, 2019 SVB Financial Group¹ CET 1 risk-based capital Tier 1 risk-based capital Total risk-based capital Tier 1 leverage Tangible common equity to tangible assets² Tangible common equity to risk-weighted assets² 2015 svb> Q2 2019 Corporate Overview and Financial Results 12.28% 12.83 13.84 7.63 7.16 12.34 2016 12.80% 13.26 14.21 8.34 8.15 12.89 2017 12.78% 12.97 13.96 8.34 8.16 12.77 2018 13.41% 13.58 14.45 9.06 8.99 13.28 6/30/19 12.92% 13.08 13.97 1) All ratios, except TCE/TA and TCE/RWA, are as reported in our most recent bank holding company consolidated reports on Form FR Y-9C. TCE/TA and TCE/RWA ratios are as reported in our most recent quarterly earnings releases. 2) These are non-GAAP measures. Please see non-GAAP reconciliations at end of this presentation for more information. 8.82 8.43 13.13 58#59We are well capitalized - Bank Pressure on Tier 1 Leverage ratio from exceptional deposit and total asset growth in 2015 Bank capital ratios reflect dividends of $297M from Bank to SVBFG during the first six months of 2019, $140M in 2018, $90M in 2017 and $40M in 2016 ● ● Silicon Valley Bank¹ CET 1 risk-based capital Tier 1 risk-based capital Total risk-based capital Tier 1 leverage Tangible common equity to tangible assets² Tangible common equity to risk-weighted assets² 2015 svb> Q2 2019 Corporate Overview and Financial Results 12.52% 12.52 13.60 7.09 6.95 12.59 2016 12.65% 12.65 13.66 7.67 7.77 12.75 2017 12.06% 12.06 13.04 7.56 7.47 11.98 2018 6/30/19 12.41% 12.41 13.32 8.10 8.13 12.28 12.50% 12.50 13.44 1) All ratios, except TCE/TA and TCE/RWA, are as reported in our most recent bank holding company consolidated reports on Form FR Y-9C. TCE/TA and TCE/RWA ratios are as reported in our most recent quarterly earnings releases. 2) These are non-GAAP measures. Please see non-GAAP reconciliations at end of this presentation for more information. 8.17 7.91 12.72 59#60Non-GAAP Reconciliations svb > Q2 2019 Corporate Overview and Financial Results 60#61Non-GAAP reconciliation* Core fee income Non-GAAP core fee income (dollars in thousands) GAAP noninterest income Less: gains on investment securities, net Less: net gains on equity warrant assets Less: other noninterest income Non-GAAP core fee income Non-GAAP core fee income (dollars in thousands) GAAP noninterest income Less: gains on investment securities, net Less: net gains on equity warrant assets Less: other noninterest income Non-GAAP core fee income including investment banking revenue and commissions Less: investment banking revenue Less: commissions Non-GAAP core fee income Non-GAAP core fee income (dollars in thousands) GAAP noninterest income Less: gains on investment securities, net Less: net gains on equity warrant assets Less: other noninterest income Non-GAAP core fee income including investment banking revenue and commissions Less: investment banking revenue Less: commissions Non-GAAP core fee income Sep 30, 2016 $144,140 23,178 21,558 18,878 $80,526 Mar 31, 2018 $155,518 9,058 19,191 $115,010 $115,010 2015 $472,794 89,445 70,963 47,004 $265,382 Dec 31, 2016 $113,502 9,976 4,639 14,239 $84,648 Jun 30, 2018 $192,689 36,114 19,061 Quarter ended Mar 31, 2017 $117,659 15,970 6,690 Jun 30, 12,421 12,811 $82,578 $87,267 Sep 30, 2018 $210,070 32,193 34,141 2017 $128,528 $158,778 17,630 15,238 10,820 24,922 Quarter ended Dec 31, 2018 Sep 30, 2017 $123,124 $131,714 $146,042 Year ended December 31, 2016 $456,552 51,740 37,892 50,750 $316,170 15,896 $102,722 $186,707 $280,376 10,729 29,028 16,749 21,305 2017 $557,231 64,603 54,555 59,110 $378,963 Mar 31, 2019 $123,124 $131,714 $146,042 $218,146 49,795 14,108 $154,243 2018 $744,984 88,094 89,142 51,858 $515,890 Dec 31, 2017 $152,266 15,765 12,123 17,982 $106,396 Jun 30, 2019 $333,750 47,698 48,347 $220,460 48,694 14,429 $157,337 YTD Jun 30, 2019 $614,126 76,726 69,652 29,142 $438,606 98,489 28,537 $311,580 $265,382 $316,170 $378,963 $515,890 * See "Use of Non-GAAP Financial Measures" at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this measure. svb> Q2 2019 Corporate Overview and Financial Results 61#62Non-GAAP reconciliation* Non-marketable and other equity securities Non-GAAP non-marketable and other equity securities, net of non-controlling interests (dollars in thousands) GAAP non-marketable and other equity securities Less: amounts attributable to non-controlling interests Non-GAAP non-marketable and other equity securities, net of non-controlling interests Composition of non-GAAP non-marketable and other equity securities, net of non-controlling interests (dollars in thousands) Non-marketable and other equity securities (fair value accounting): Consolidated venture capital and private equity fund investments Unconsolidated venture capital and private equity fund investments Investments without a readily determinable fair value Other equity securities in public companies Non-marketable securities (equity method accounting): Venture capital and private equity fund investments Debt funds China Joint Venture Investment Other investments Investments in qualified affordable housing projects, net Total non-marketable and other equity securities Jun 30, 2019 svb> Q2 2019 Corporate Overview and Financial Results $1,079,749 148,270 $931,479 Jun 30, 2019 $28,631 193,206 42,419 37,156 105,056 7,168 76,544 47,253 394,046 $931,479 * See "Use of Non-GAAP Financial Measures" at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this measure. 62#63Non-GAAP reconciliation* Net gains on investment securities Non-GAAP net gains (losses) on investment securities (dollars in thousands) GAAP net gains on investment securities Less: income attributable to noncontrolling interests, including carried interest Non-GAAP net gains on investment securities, net of noncontrolling interests Non-GAAP net gains (losses) on investment securities (dollars in thousands) GAAP net gains on investment securities Less: income attributable to noncontrolling interests, including carried interest Non-GAAP net gains on investment securities, net of noncontrolling interests Jun 30, 2018 svb> Q2 2019 Corporate Overview and Financial Results $36,114 9,672 $26,442 2015 $89,445 32,115 $57,330 Sep 30, 2018 $32,193 6,641 $25,552 $51,740 8,312 Quarter ended Dec 31, 2018 $43,428 $10,729 8,965 Year ended December 31, 2016 2017 $1,764 $64,603 29,187 $35,416 Mar 31, 2019 $29,028 3,436 $25,592 2018 $88,094 38,183 $49,911 Jun 30, 2019 $47,698 18,598 $29,100 YTD Jun 30, 2019 $76,726 22,034 $54,692 * See "Use of Non-GAAP Financial Measures" at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this measure. 63#64Non-GAAP reconciliation* Capital ratios Consolidated (SVBFG) TCE/TA and TCE/RWA Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios) GAAP SVBFG stockholders' equity Less: Intangible assets Tangible common equity (TCE) GAAP Total assets Less: Intangible assets Tangible assets (TA) Risk-weighted assets (RWA) Tangible common equity to tangible assets Tangible common equity to risk-weighted assets Bank only TCE/TA and TCE/RWA Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios) Tangible common equity (TCE) Tangible assets (TA) Risk-weighted assets (RWA) Tangible common equity to tangible assets Tangible common equity to risk-weighted assets 2015 svb> Q2 2019 Corporate Overview and Financial Results $3,198,134 $3,198,134 $44,686,703 $44,686,703 $25,919,594 2015 7.16% 12.34% $3,059,045 $44,045,967 $24,301,043 6.95% 12.59% Year ended December 31, 2016 $3,642,554 $3,642,554 $44,683,660 $44,683,660 $28,248,750 8.15% 12.89% $3,423,427 $44,059,340 $26,856,850 2017 $4,179,795 7.77% 12.75% $4,179,795 $51,214,467 $51,214,467 $32,736,959 Year ended December 31, 2016 2017 8.16% 12.77% $3,762,542 $50,383,774 $31,403,489 7.47% 11.98% Jun 30, 2019 $5,554,043 192,981 $5,116,209 $5,361,062 $56,927,979 $63,773,739 192,981 $56,927,979 $63,580,758 $38,527,853 $40,843,334 2018 $5,116,209 8.99% 13.28% 2018 8.43% 13.13% $4,554,814 Jun 30, 2019 $4,936,520 $62,380,814 $56,047,134 $37,104,080 $38,821,244 7.91% 8.13% 12.28% 12.72% * See "Use of Non-GAAP Financial Measures" at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this measure. 64#65Non-GAAP reconciliation* Noninterest income Non-GAAP non-interest income, net of non-controlling interests (dollars in thousands) GAAP noninterest income Less: income attributable to noncontrolling interests, including carried interest Non-GAAP noninterest income, net of noncontrolling interests Non-GAAP Non-interest income, net of non-controlling interests (dollars in thousands) GAAP noninterest income Less: income attributable to noncontrolling interests, including carried interest Non-GAAP noninterest income, net of noncontrolling interests Jun 30, 2018 Sep 30, 2018 $192,689 $210,070 9,445 6,692 svb> Q2 2019 Corporate Overview and Financial Results $183,244 2015 $472,794 31,736 $441,058 $203,378 Quarter ended Dec 31, 2018 $186,707 8,839 $177,868 Year ended December 31, 2016 $456,552 8,039 $448,513 2017 $557,231 29,452 $527,779 Mar 31, 2019 $280,376 3,248 $277,128 2018 $744,984 38,000 $706,984 Jun 30, 2019 $333,750 18,736 $315,014 YTD Jun 30, 2019 $614,126 * See "Use of Non-GAAP Financial Measures" at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this measure. 21,984 $592,142 65#66Non-GAAP reconciliation* Non-GAAP core operating efficiency ratio (Dollars in thousands, except ratios) GAAP noninterest expense Less: amounts attributable to noncontrolling interests Non-GAAP noninterest expense, net of noncontrolling interests Less: expense attributable to SVB Leerink Non-GAAP noninterest expense, net of noncontrolling interests and SVB Leerink GAAP net interest income Adjustments for taxable equivalent basis Non-GAAP taxable equivalent net interest income Less: income attributable to noncontrolling interests Non-GAAP taxable equivalent net interest income, net of noncontrolling interests Less: net interest income attributable to SVB Leerink Non-GAAP taxable equivalent net interest income, net of noncontrolling interests and SVB Leerink GAAP noninterest income Less: income attributable to noncontrolling interests Non-GAAP noninterest income, net of noncontrolling interests Less: Non-GAAP net gains on investment securities, net of noncontrolling interests Less: net gains on equity warrant assets Less: investment banking revenue Less: commissions Non-GAAP noninterest income, net of noncontrolling interests and net of net gains on investments securities, net gains on equity warrants assets, investment banking revenue and GAVPistal revenue Non-GAAP taxable equivalent revenue, net of noncontrolling interests and SVB Leerink, net of net gains on investments securities, net gains on equity warrants assets, investment banking revenue and commissions GAAP operating efficiency ratio (A/C) Non-GAAP core operating efficiency ratio (B/D) A svb> Q2 2019 Corporate Overview and Financial Results B Year ended December 31, 2015 $ 779,962 828 2016 $859,797 524 $ 779,134 $ 859,273 D 8 $779,134 $ 859,273 $1,009,842 $1,187,671 $ $1,006,425 $1,150,523 $1,420,369 $1,893,988 $ 1,564 1,203 3,076 9,201 $1,007,989 $1,151,726 $1,423,445 $1,903,189 $ 66 YTD 2017 2018 Jun 30, 2019 $1,010,655 $1,188,193 $ 749,186 813 547 $1,009,842 $1,187,671 $ 748,639 122,475 626,164 1,042,289 5,812 1,048, 101 27 $1,007,981 $1,151,660 $1,423,412 $1,007,981 $1,151,660 $1,423,412 $ 472,794 $ 456,552 $ 557,231 31,736 8,039 29,452 $441,058 $448,513 $ 527,779 89,445 51,740 64,603 70,963 37,892 54,555 52.73% C $1,479,219 $1,607,075 $1,977,600 $1,288,631 $1,510,541 $1,832,033 60.46% 33 53.50% 45.02% 56.89% 48.82% $ 280,650 $ 358,881 $ 408,621 $529,748 $ 522 51.11% 55.12% 30 $1,903,159 $ $1,903,159 $ $744,984 $ 38,000 $706,984 $ 88,094 89,142 $2,638,972 $ $2,432,907 $ 1,048,074 684 1,047,390 614,126 21,984 592,142 54,692 69,652 98,489 28,537 340,772 1,656,415 1,388,162 45.23% 45.11% See "Use of Non-GAAP Financial Measures" at the end of our most recent quarterly earnings release for further information regarding the calculation and limitations of this measure. 66#67svb> Financial Group Meghan O'Leary Head of Investor Relations 7 3005 Tasman Drive Santa Clara, CA 95054 T 408 654 6364 M 650 255 9934 [email protected] Find SVB on LinkedIn, Facebook and Twitter