Silicon Valley Bank Results Presentation Deck slide image

Silicon Valley Bank Results Presentation Deck

Strong levels of reserves to withstand changing market conditions Reserve release driven by improved economic scenarios and continued strong Private Bank performance Tech & LS / HC Moody's December forecasts (40% baseline, 30% downside, 30% upside) Economic scenarios improved (Baseline: Peak unemployment of ~7% in Q2'21 and 1 year GDP growth of 4.1%) Loss modeling does not include impact of fiscal stimulus or relief programs In thousands Early-Stage Investor Dependent Mid-Stage Investor Dependent Later-Stage Investor Dependent Balance Sheet Dependent Cash Flow Dep: Sponsor Led Buyout Cash Flow Dep: Other Private Bank Global Fund Banking Premium Wine Other ACL for loans ACL for unfunded credit commitments ACL for loans and unfunded credit commitments svb > ALLOWANCE FOR CREDIT LOSSES FOR LOANS AND UNFUNDED CREDIT COMMITMENTS $ Millions 614 6.97% 3.84% 4.85% 1.71% 2.51% 1.55% 1.73% 0.20% 0.96% 0.18% 1.34% 0.33% 0.90%* 513 101 ACL 9/30/20 (%) ACL 9/30/20 102,559 62,418 97,711 29,069 51,661 40,321 76,479 38,989 10,405 3,346 $512,958 $101,515 $614,473 23 13 10 Changes in loan composition/growth Changing credit quality Charge-offs/recoveries Portfolio Changes (538) (10,744) (9,714) 7,722 6,535 3,772 5,417 10,700 (718) 248 $12,680 $9,831 $22,511 * Weighted average ACL ratio for loans outstanding and unfunded credit commitments. (68) (78) 10 Improved Moody's economic scenarios Additional qualitative adjustment for Private Bank reserves given strong performance Model Assumptions (15,347) (3,510) (9,478) (1,140) (9,098) (4,593) (28,267) (4,105) (940) (1,395) 569 448 121 ACL 12/31/20 ACL 12/31/20 (%) 86,674 48,164 78,519 35,651 49,098 39,500 53,629 45,584 8,747 2,199 $(77,873) $447,765 $9,450 $120,796 $(68,423) $568,561 5.83% 3.08% 4.09% 1.63% 2.47% 1.34% 1.09% 0.18% 0.83% 0.14% 0.99% 0.38% 0.74%* ~6% average Early-Stage NCOS over 2008-2010 VS. ā—„ -67% of internal 9-quarter stress losses Q4 2020 Financial Highlights 26
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