Silicon Valley Bank Results Presentation Deck
Well-positioned for rising rates
Asset sensitive
balance sheet...
...magnified by
robust growth...
-$100M 66%
MODELED INCREASE IN OF Q1 AVERAGE
ANNUALIZED PRETAX DEPOSITS ARE
NII FOR EACH 25 BP NONINTEREST-
INCREASE IN RATES¹ BEARING
92% $3.0-3.5B
OF Q1 AVERAGE
LOANS ARE
VARIABLE RATE
ESTIMATED SECURITIES
PAYDOWNS/QUARTER
svb >
$163M $25B
REMAINING LOCKED-IN ACTIVE LOAN
SWAP GAINS³
FLOORS4
Mid
30s% High
60s%
EXPECTED FY'21
AVERAGE LOAN
GROWTH²
Proactive interest rate risk management
Still benefitting from
strategies to protect
against low rates:
EXPECTED FY'21
AVERAGE DEPOSIT
GROWTH²
Excess liquidity invested in 3-5 year duration
securities (primarily classified as HTM)
Z
...and substantial
off-balance sheet
client funds
$152B -$90-120M
Q1 AVERAGE OBS
CLIENT FUNDS
* Equivalent to 6-8 bp increase in client investment
fee margin based on Q1'21 average balance. Expect
client investment fee margin to increase by 1-2 bps for
each subsequent 25 bp increase in short-term rates
EXPECTED INCREASE IN
ANNUALIZED CLIENT
INVESTMENT FEES FOR
INITIAL 25 BP INCREASE
IN RATES*
Positioning securities portfolio to
create flexibility and mitigate OCI risk
from potential rising long-term rates:
Note: Average balances represent Q1'21 averages. All other figures as of March 31, 2021.
1. Equivalent to +15% NII sensitivity for the expected 12month impact of a +100 bp rate shock on net interest income.
Management's sensitivity analysis is based on a static balance sheet and is subject to assumptions; actual results may
differ. See Q1'21 Form 10-Q report for more information.
$3B $10B
TRANSFERRED
FROM AFS
TO HTM
FAIR VALUE
HEDGES (38% OF
AFS PORTFOLIO)
2. See page 17 for more information.
3. 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 variablerate loans.
4. $216M mark-to-market value. 3.49% weighted average floor rate, 1.6year weighted average duration.
SHORTENING
AFS PORTFOLIO
DURATION TO
<2y (HEDGE-
ADJUSTED TARGET)
Q1 2021 Financial Highlights
14View entire presentation