Silicon Valley Bank Results Presentation Deck
Proactively 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.
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