Silicon Valley Bank Results Presentation Deck slide image

Silicon Valley Bank Results Presentation Deck

Glossary (continued) Classes of Financing Receivables: These are the levels at which we monitor and assess credit risk in our loan portfolio. Global Fund Banking: Primarily capital call lines of credit to PE/VC funds. Repayment dependent on the payment of capital calls by the limited partner investors in the funds. Investor Dependent ("ID"): Loans primarily to technology and life science/healthcare companies. Repayment may be dependent upon borrower's ability to raise additional equity financing or exit. • Early Stage: Loans to pre-revenue, development-stage companies and companies with revenues of up to $5M. • Growth Stage: Loans to mid-stage companies (with revenues between $5-$15M, or pre-revenue clinical-stage biotechnology companies) and later-stage companies (with revenues > $15M). Cash Flow Dependent and Innovation Commercial & Industrial ("C&I"): Loans primarily to technology and life science/healthcare companies that are not Investor Dependent (repayment not dependent on borrower's ability to raise additional equity financing or exit). ● Cash Flow Dependent - Sponsor-Led Buyout ("CFD - SLBO"): Loans to facilitate PE Sponsors' acquisition of businesses (typically established, later-stage businesses of scale). Repayment generally dependent upon cash flows of the combined company. Reasonable levels of leverage and meaningful financial covenants; sponsor's equity contribution is often 50+% of the acquisition price. • Innovation C&I: Other cash flow dependent loans (require borrowers to maintain cash flow from operations that is sufficient to service all debt) and balance sheet dependent loans (include asset-based loans and require constant current asset coverage exceeding the outstanding debt) to technology and life science/healthcare companies. Repayment dependent on financial condition and payment ability of third parties with whom our clients conduct business. Private Bank: Loans primarily to executive leaders and senior investment professionals in the innovation economy as well as high net worth individuals acquired from Boston Private. Primarily mortgages. CRE: Generally acquisition financing for commercial properties. Other C&I: Working capital, revolving lines of credit and term loans primarily to non-technology and life science/healthcare companies and commercial tax-exempt loans to not-for-profit organizations. Premium Wine and Other: Premium Wine: Loans primarily to wine producers, vineyards and wine industry or hospitality businesses across the Western United States; mostly secured by real estate. Other: Consists of construction and land loans and CRA community development loans. PPP: Loans issued through the SBA Paycheck Protection Program ("PPP") and are guaranteed by the U.S Small Business Administration. ● svb) Q1 2022 FINANCIAL HIGHLIGHTS 52
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