Silicon Valley Bank Results Presentation Deck
Excellent credit performance - well-positioned to withstand potential impacts of prolonged public
market volatility; Maintaining 15-35 bps FY'22 NCO outlook
FY'22 outlook key assumptions
Q1'22 activity
Excellent credit performance marked by low gross charge-offs ($18M), strong
recoveries ($10M) and declining NPLs ($72M, -$19M QOQ)
●
.
Provision primarily driven by a $19M increase in performing and unfunded
reserves for robust growth and $6M net credit losses, partially offset by a
$15M decrease in specific reserves from repayments and credit upgrades
Credit quality Q1'21
metrics
0.79%¹
0.20%
Provision
components
$M
svb>
Q1'21
$19
811
18
(16)
(62)
(3)
Q2'21
0.10%
0.16%
Q2'21
$35
15
15
(7)
4
0.07%
Q3'21 Q4'21 Q1'22
0.01% 0.05%
0.14% 0.10%
0.19%
Q3'21
$21
46
27
10
(70)
7
Q4'21
$48
3
22
20
2
Q1'22
$11
15
(13)
(1)
Net charge-offs²
Non-performing
loans³
Provision for
credit losses
BP non-PCD &
unfunded
commitments
Unfunded
Net credit losses
Loan
4
6 composition
Non-performing
loans
HTM securities
Model
assumptions
Moody's March
economic scenarios
2. Net loan charge-offs as a percentage of average total loans (annualized).
3. Non-performing loans as a percentage of period-end total loans.
40%
baseline
Recovering business activity
As COVID-19 restrictions ease
Strong client balance sheets
Record VC investment over the past 2 years has extended client runway
30%
downside
Significant PE/VC dry powder
That needs to be deployed
Improved risk profile of loan portfolio
Early Stage - historically has produced the most losses - only 2% of loans;
70% of loans in low credit loss experience GFB and Private Bank classes
30%
upside
Minimal Russia/Ukraine direct exposure
No material impact from Russia/Ukraine conflict
1. Q1'21 included an $80M net charge-off related to an isolated GFB potential fraud incident. Less this $80M net charge-off, Q1'21 net credit losses
were $1M and net charge-offs were 0.09%.
Increased CRE exposure from acquired Boston Private loans
Commercial real estate more impacted by COVID-19 restrictions and
transition to hybrid work environment; mitigated by limited overall exposure
(only 4% of total loans), well-margined collateral and ample reserves
Larger Growth Stage and Innovation C&I loan sizes
Growth of our balance sheet and our clients has increased number of large
loans, which may introduce greater volatility in credit metrics
Q1 2022 FINANCIAL HIGHLIGHTS
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