Silicon Valley Bank Results Presentation Deck
Moderating market-related gains and potential volatility
Expect gains to moderate from 2021's exceptional levels, more than offset by expected NII growth
Q1'22 activity
Warrant gains driven primarily by unrealized valuation increases as exits slowed
Investment gains driven primarily by $49M net gains from sale of AFS fixed
income securities and related swap unwind (realized) and $49M gains from SVB
Capital managed funds (primarily unrealized), partially offset by $32M losses in
public equity positions (primarily realized)
FY'22 considerations
●
●
+
+
Public market volatility
Impacts valuations, PE/VC investment and exits
Near-term pressure on later-stage fundraising and exits
Moderates private valuation growth and increases potential for down rounds
Fewer exits reduce opportunities to realize gains
Granular, diversified positions
Warrants: Only 54 warrants out of 2,800+ positions with a fair value >$1M,
collectively representing $175M in fair value
Private fund investments: Exposure to over 500 funds with nearly 25,000
investments in ~10,000 companies across various industries and stages of
development
Strong client liquidity
Private valuations driven by fundraising events strong client liquidity
mitigates need to raise equity at lower valuations
Limited public equity exposure
Predominantly private companies
svb>
Warrant and investment gains
Net of NCI¹
$M
Warrant gains
Gains from sales
of AFS securities
Investment gains less
AFS sales
Warrants
364
Non-marketable
and other equity
securities ¹, 2
222
142
Q1'21
244
Warrants & non-marketable and other
equity securities ¹,2
$M
1,015
314
Q1'21
122
192
Q2¹21
266
949
Q2'21
248
147
101
Q3'21
274
1,216
Q3'21
Note: The extent to which unrealized gains (or losses) from investment securities from our non-marketable and other equity securities portfolio as well as our equity warrant assets will
become realized is subject to a variety of factors, including, among other things, performance of the underlying portfolio companies, investor demand for IPOs and SPACs, fluctuations
in the underlying valuation of these companies, levels of M&A activity and legal and contractual restrictions on our ability to sell the underlying securities.
1. Non-GAAP financial measure. See "Use of non-GAAP Financial Measures" in our Q1 2022 Earnings Release and our non-GAAP reconciliations at the end of this presentation.
2. Net of investments in qualified affordable housing projects and noncontrolling interests.
155
69
32
54
Q4'21
277
1,222
Q4'21
130
63
49
18
Q1'22
323
1,259
Q1'22
Q1 2022 FINANCIAL HIGHLIGHTS 30View entire presentation