Silicon Valley Bank Results Presentation Deck
PE investment activity and increased Technology and Life Science/Healthcare borrowing drove
robust loan growth; Raising FY'22 average loan growth outlook to mid 30s % on strong pipelines
Q1'22 activity
Robust loan growth (average +7% QOQ, EOP +4% QoQ) led by strong GFB
capital call lending
●
• Market volatility increased demand for Technology and Life
Science/Healthcare loans
• Strong mortgage originations (~$770M, in-line QoQ) driven by refinance
activity in reaction to rising rates
Average
Loans
$B
Average
Loan Yield
svb>
46.3
5.0
11.8
26.3
Q1'21
58.4%
3.45%
Q4'21
loan yield
1.6
1.6
49.8
5.2
12.4
29.1
Q2¹21
58.2%
1.4
1.7
0.02%
Rate hike
59.3
0.6
2.7
1.4
8.2 1.8
12.7
31.9
Q3'21
60.4%
62.6
8.6
13.2
34.4
Q4'21
60.3%
(0.01%)
0.3
2.7
1.4
2.0
67.1
0.2 PPP
2.7 CRE
1.3
9.0 1.8
14.0
38.1
(0.01%)
Other C&I
Premium Wine
and Other
Private Bank
Tech and Life
Science/HC
Q1'22
60.1% Portfolio utilization
Loan yield
Loan fees
compression (PPP and prepays)
Global Fund
Banking
3.45%
Q1'22
loan yield
FY'22 outlook key assumptions
Loan growth:
+
+
Significant PE/VC dry powder
That needs to be deployed, ultimately fueling GFB capital call line borrowing
+
Strong SVB Private loan growth, enhanced by Boston Private integration
Targeting -$16-17B total balances at year-end, led by mortgage lending (SVB Private loan
target includes Private Bank, CRE, Other C&I, Premium Wine and Other loan classes)¹
Robust tech and life science/HC pipelines
Increased demand in response to public market volatility
Near-term pressure on later-stage fundraising and exits
Moderating related PE/VC investment activity
Higher loan rates
Impact mortgage refinance demand
Loan yields:
Higher loan yields from March rate hike
92% of Q1'22 average loans were variable rate
Rate protections
$101M remaining locked-in pre-tax swap gains as of 3/31/22²
$21B active loan floors as of 3/31/22³
Boston Private purchase accounting
Amortization of fair value mark ups on loans ($50M remaining at 3/31/22, vast
majority to be amortized by end of 2023)
Shifting loan mix
Growth driven by lower yielding GFB and Private Bank mortgages
Spread compression
From increasing competition and higher rates
1. SVB Private loan target updated to reflect inclusion of Premium Wine class in SVB Private segment reporting beginning Q1'22. Premium Wine loans ($1.0B at
3/31/22) were previously reported in Global Commercial Bank segment reporting.
2. Expect vast majority of remaining pre-tax gains from $5B swap unwind in Q1'20 to be reclassified from OCI to loan interest income by the end of 2023.
3. 3.04% weighted average floor rate. $58M expected benefit from in-the-money floors based on a weighted average maturity of 1.3 years.
Q1 2022 FINANCIAL HIGHLIGHTS 24View entire presentation