Silicon Valley Bank Results Presentation Deck
Robust loan growth as private equity investment accelerates
Expect FY'21 average loan % growth in the mid 20s
Q4'20 activity
Q4 average loans +11% qoq (periodend loans +18%)¹ as PE clients
resumed deal activity, driving record high capital call line borrowing
• Low rates continued to fuel strong Private Bank mortgage growth
Period-end tech and life science/HC loans +$455M qoq; paydowns from
strong liquidity impacted average balances
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●
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• $16M interest rate swap gains² and $22B average active loan floors in
Q4 continued to benefit loan yields
AVERAGE LOANS
$ Billions
Portfolio Utilization
Other
Wine
Tech and Life
Science/HC
Private Bank
Global Fund
Banking
3.93%
Q3'20
Loan Yield
svb>
AVERAGE LOAN YIELD
0.01%
57.6%
LIBOR
32.0
9.7
3.7
16.8
Q4'19
59.7%
33.7
9.9
3.9
18.0
56.8%
(0.05%)
Loan Fees
(excluding
SBA PPP)
36.5
11.5
4.0
17.7
0.07%
SBA PPP
55.9%
3
37.3
11.3
4.3
18.2
Q1'20 Q2'20¹ Q3'20¹ Q4'20¹
58.6%
(0.10%)
Loan Mix
41.5
11.1
4.6
22.1
3.86%
Q4'20
Loan Yield
Loan growth may be impacted by:
+
FY'21 outlook key drivers
+
Strong PE/VC investment
Expected to drive robust capital call line growth for FY'21; maturities
in 1H'21
Robust tech and life science/HC lending pipelines
Expected to offset paydowns from ample liquidity
Strong Private Bank mortgage origination
Due to low mortgage rates
SBA PPP forgiveness
~$1.6B SBA PPP loans outstanding as of 12/31/20-estimate ~$1.1B
forgiveness in Q1'214
Loan yields expected to be impacted by:
Rate protections
$22B active loan floors as of 12/31/20 and $179M remaining
locked-in swap gains²
SBA PPP forgiveness
~$1.6B SBA PPP loans outstanding as of 12/31/20- estimate ~$1.1B
forgiveness in Q1'214
Shifting loan mix
Towards lower yielding Global Fund Banking capital call lines
Spread compression
Increasing competition as economy recovers
1. Q4'20 loan growth excluding SBA PPP was 12% (average) and 19% (period-end). SBA PPP loans contributed -$1.7B to Q4'20 average
loans, $1.8B to Q3'20 average loans and -$1.4B to Q2'20 average loans.
2. Unwound $5B swaps in Q1'20 resulting in $227M pretax fair value gains in OCI to be reclassified to loan interest income over -5 years
based on the timing of cash flows from hedged variable-rate loans.
3. SBA PPP contributed $14.3M to net interest income, including $9.9M of loan fees.
4. Estimate only, subject to SBA PPP terms; amounts actually forgiven and timing of forgiveness may differ. Excludes impact of PPP 2.0.
Q4 2020 Financial Highlights
21View entire presentation