Restricted FR 

CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT 

DIVISION OF FINANCIAL INSTITUTIONS 

1515 K STREET, SUITE 200 

SACRAMENTO, CA 

FEDERAL RESERVE BANK OF SAN FRANCISCO 

101 MARKET STREET 

SAN FRANCISCO, CA 94105 

Transmitted by Secure Email 

April 13, 2020 

Board of Directors 

Silicon Valley Bank 

3003 Tasman Drive 

Santa Clara, California 95054 

Members of the Board: 

Enclosed is the report of examination of Silicon Valley Bank to conclude the 2019 supervisory cycle. The 

examination commenced on November 29, 2019, using financial information as of September 30th, and 

leverages findings from events throughout the cycle. Examination results were shared with executive 

and senior management during an exit meeting on January 17th. 

The bank’s overall financial condition remains satisfactory. Asset quality, capital, earnings, and sensitivity to 

market risk are satisfactory, and liquidity levels are strong. Management and risk management are 

satisfactory, but risk measurement and monitoring apart from business segments display weaknesses. 

Installation of an appropriate risk management framework in financial categories has been an area of focus 

and signs of progress are evident. Progress to strengthen governance and controls in nonfinancial risk areas 

has been slower and require additional attention. 

More specifically, improvements are needed in the bank’s nonfinancial functional areas. The 

January 30, 2017 Memorandum of Understanding designed to improve internal controls within the Bank 

Secrecy Act/Anti-Money Laundering compliance program remains in effect. Greater attention to 

appropriate governance and monitoring activities related to technology and operations functions is also 

warranted. Lastly, the enterprise risk management program has not reached a level of maturity 

commensurate with the bank’s size and complexity, and further efforts are needed. These issues and 

others are further discussed in the Matters Requiring Board Attention and Compliance with Enforcement 

Actions pages of the report. 

Page 1 of 2 

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Federal Reserve Bank of San Francisco 

Board of Directors
 

Silicon Valley Bank
 

April 13, 2020
 

As the report raises no new supervisory issues, a response is not requested; existing supervisory concerns 

will be addressed through continuous monitoring and examination events through the 2020 supervisory 

cycle. Upon completing your review, each director should sign the enclosed Signature of Directors page 

to acknowledge their review. This letter and the signed Signature of Directors page should be retained 

with the bank’s permanent records. As a reminder, this letter and the enclosed report are the property of 

the Board of Governors and is furnished to directors and management for their confidential use under 

applicable law.i 

We look forward to an upcoming opportunity to meet with the board; please direct any interim questions 

regarding this report of examination to Redacted at Redacted

and Central Point of Contact Redacted at Redacted . 

Sincerely, 

Redacted Redacted Redacted Redacted

Examiner-in-Charge 

Department of Business Oversight Federal Reserve Bank of San Francisco 

By: 

Redacted Redacted Redacted

cc: Federal Deposit Insurance Corporation 

Consumer Financial Protection Bureau 

Enclosure 

Page 2 of 2 

BOG-FRS - Public Release, April 2023

i This document has been prepared by an examiner selected or approved by the Board of Governors of the Federal Reserve 

System. The document is the property of the Board of Governors and is furnished to directors and management for their 

confidential use. The document is strictly privileged and confidential under applicable law, and the Board of Governors has 

forbidden its disclosure in any manner without its permission, except in limited circumstances specified in the law (12 U.S.C 

1817(a) and 1831m) and in the regulations of the Board of Governors (12 C.F.R. 261.20). Under no circumstances should the 

directors, officers, employees, trustees or independent auditors disclose or make public this document or any portion thereof 

except in accordance with applicable law and the regulations of the Board of Governors. Any unauthorized disclosure of the 

document may subject the person or persons disclosing or receiving such information to the penalties of Section 641 of the U.S. 

Criminal Code (18 U.S.C. 641). Each director or trustee, in keeping with his or her responsibilities, should become fully informed 

regarding the contents of this document. In making this review, it should he noted that this document is not an audit, and 

should not be considered as such. 
RESTRICTED F.R. 

REPORT OF 

COMMERCIAL BANK EXAMINATION 

California Department of Business Oversight 

Federal Reserve Bank of San Francisco 

Bank Name: SILICON VALLEY BANK 

Location: SANTA CLARA, CALIFORNIA 

RSSD Number: 802866

Start Date: NOVEMBER 29, 2019 

Financial Statements as of: SEPTEMBER 30, 2019 

Concluded on: DECEMBER 11, 2019 

THIS DOCUMEN T IS STRICTLY CONFIDENTIA L 

This document has been prepared by an examiner selected or approved by the Board of Governors of the Federal Reserve System The document is the 

property of the Board of Governors and is furnished to directors and management for their confidential use. The document is strictly privileged and 

confidential under applicable law. and the Board of Governors has forbidden its disclosure m any manner without its permission, except in limited 

circumstances specified in the law (12 U.S.C 1817(a) and 1831m) and in the regulations of the Board of Governors (12 C.F.R. 261.20). Under no 

circumstances should the directors, officers, employees, trustees or independent auditors disclose or make public this document or any portion thereof 

except in accordance with applicable law and the regulations of the Board of Governors. Any unauthorized disclosure of the document may subject the 

person or persons disclosing or receiving such information to the penalties of Section 641 of the U.S. Criminal Code (18 U.S.C. 641). Each director or 

trustee, in keeping with his or her responsibilities, should become fully informed regarding the contents of this document. In making this review, it 

should be noted that this document is not an audit, and should not be considered as such. 

FEDERAL RESERVE BANK OF SAN FRANCISCO 

BOG-FRS - Public Release, April 2023
REPORT OF 

COMMERCIAL BANK 

EXAMINATION 

Silicon Valley Bank 

Bank Name 

Physical Location 

Street: 3003 Tasman Drive 

City: Santa Clara 

County: Santa Clara 

State: California 

Mailing Address 

Street/Box: 3003 Tasman Drive 

City: Santa Clara 

State: CA 

ZIP Code: 95054-1191 

X Joint Concurrent Independent 

Redacted 

California DBO Examiner-in-Charge 

Redacted 

Federal Reserve Bank Examiner-in-Charge 

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TABLE OF CONTENTS
 

Scope.................................................................................................................................................3
 

Matters Requiring Board Attention and
 

Examination Conclusions and Comments ...................................................................................4
 

Compliance with Enforcement Actions.............................................................................................7
 

Management / Risk Management ....................................................................................................8
 

Analysis of Financial Factors .............................................................................................................9
 

Summary of Items Subject to Adverse Classification /
 

Summary of Items Listed as Special Mention..............................................................................13
 

Other Matters ...................................................................................................................................14
 

Signature of Directors .......................................................................................................................15
 

Note: Except as indicated, amounts in tables are shown to the nearest thousand dollars. 

Date of previous full-scope examination: October 01, 2018 

Page 2 of 15 

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This report of examination presents the findings and conclusions of the roll-up safety and soundness 

examination of Silicon Valley Bank (SVB). The examination was conducted jointly by examiners from the 

Federal Reserve Bank of San Francisco (FRB) and the California Department of Business Oversight (DBO) 

using financial and asset quality data as of September 30th.

1

 Examination work was conducted from 

November 29th to December 11th. This examination focused on evaluating capital adequacy, asset 

quality, management, risk management, earnings, liquidity, and sensitivity to market risk. Examiner 

conclusions are leveraged from work completed during the 2019 supervisory cycle including the six 

target events listed below as well as ongoing continuous monitoring activities. 

Supervisory Event Rating/Conclusion Event Start Date Supervisory Letter 

Internal Audit (IA) Effective 12/03/18 2/22/19 

Information Technology (IT) 2-3-2-2/2 2/25/19 6/05/19 

Bank Secrecy Act (BSA)/ 

Anti-Money Laundering Needs Improvement 4/22/19 6/27/19 (AML)/ Office of Foreign 

Asset Control (OFAC) 

Asset Quality Satisfactory 5/06/19 7/17/19 

Credit Risk Management Satisfactory 10/07/19 1/23/20 

BSA/AML/OFAC Needs Improvement 11/04/19 2/05/20 

No Consumer Compliance or Community Reinvestment Act examinations were conducted during 2019. 

Asset Quality 

The assessment of Asset Quality included file review of 183 relationships accounting for 13.31 percent of 

commercial loan commitments. The loan files selected focused on the following portfolios: Private 

Equity Services (PES), Leveraged Loans, Investor Dependent (ID), Wine Lending, Asset Based Lending, 

and Commercial & Industrial, and was representative of the bank's loan portfolio excluding consumer 

loans. The focus of the loan review was on newly originated credits, internally classified and criticized 

loans, nonaccrual and past due loans, loans internally graded watch, and large borrowing relationships. 

Additionally, examiners reviewed director, executive officer, and related loans to determine compliance 

with Regulation O. The evaluation of credit risk management practices included a review of underwriting 

standards, risk monitoring, and the accuracy of the internal loan rating system. Trends, level, and 

oversight of loan concentrations were also reviewed. The methodology and level of the allowance for 

loan and lease losses (ALLL) was assessed. 

Peer Comparison 

Throughout the report, the performance of SVB is compared to national peer group averages of other 

commercial banks of similar size and structure. The peer group for SVB is comprised of 91 commercial 

banking institutions with assets between $10 billion and $100 billion. 

1

 Unless otherwise noted, all financial information and analysis is as-of (or for the nine months ending) September 30, 2019. 

BOG-FRS - Public Release, April 2023

Scope 

Scope 
Matters Requiring Immediate Attention / Matters Requiring Attention2 

No new MRIA/MRAs were identified during this examination. Listed below are open supervisory issues 

cited in previous examinations. As noted, SVB's remediation of some supervisory issues are significantly 

past-due compared to management's original remediation timelines. Management continues working 

on open supervisory issues, and supervisory validation will be conducted during the 2020 cycle. 

SUMMARY OF OUTSTANDING FINDINGS 

Matters Requiring Immediate Attention 

Issue Target Area Status3 Timeframe for Comments Completion4 

Internal Controls: BSA/AML Issues Cited at the Customer Due Diligence Carry Risk Management 8/08/16 3/31/2017 (CDD) and Suspicious Forward (Internal Controls) BSA/AML Target5 

Activity Monitoring (SAM) 

Matters Requiring Attention 

Timeframe for 

Issue Target Area Status Comments Completion 

Cited at the IT Related Issues Carry Firewall Management 2/15/19 IT 3/31/2020 (per 98-9) Forward Target6 

Info Systems/ IT Related Issues Cited at the Carry Cybersecurity Risk (per 98-9) 2/15/19 IT 1/31/2020 Forward Reporting Metrics Target6 

Cited at the Systems/Technology IT Related Issues Carry 2/15/19 IT 1/31/2020 Second Line of Defense (per 98-9) Forward Target6 

Cited at the IT Related Issues Carry Disaster Recovery Testing 2/26/18 IT 10/31/2018 (per 98-9) Forward Target7 

Cited at the Model Risk Management Management-Risk Carry 10/1/18 SVB 11/30/2019 (MRM) Management Forward Rollup6 

2

 Matters Requiring Immediate Attention are issues that the Federal Reserve is requiring a banking organization to address 

immediately. Matters Requiring Attention are issues of importance that the Federal Reserve is expecting a banking organization 

to address over time. 4

 Management's original target date for remediation of the supervisory issues (includes IA validation where applicable). 4

 Management's original target date for remediation of the supervisory issues (includes IA validation where applicable). 5

 Last reviewed during the November 4, 2019 BSA/AML Target. 6

 Not reviewed at this examination. 7

 Last reviewed during the February 15, 2019 IT Target. 

BOG-FRS - Public Release, April 2023
Safety and Soundness Examination Ratings 

Current Exam Prior Exam Prior Exam 

ExaminatioExamination Start Date 

11/29/19 10/01/18 10/02/17 

Uniform Composite Rating 2 2 2 

Component Ratings: 

2 Capital 2 2 

2 Asset Quality 2 2 

Managemen 2 t 2 2 

2 Earnings 2 2 

1 Liquidity 1 1 

2 Sensitivity to Market Risk 2 2 

2 Risk Management Rating 2 2 

SVB has been assigned a uniform composite rating of 2 based on information contained in this 

examination report and supporting workpapers. In accordance with the Uniform Financial Institutions 

Rating System, each bank is assigned a composite rating based on an evaluation of its managerial, 

operational, financial, and compliance performance. The composite rating is defined as follows: 

Composite 2 

Financial institutions with a composite 2 rating are fundamentally sound. For a financial institution to 

receive this rating, generally none of its component ratings should be more severe than 3. Only 

moderate weaknesses are present, and the board of directors and management are capable of and 

willing to correct them. These financial institutions are stable, can withstand business fluctuations, and 

are in substantial compliance with laws and regulations. Overall risk-management practices are 

satisfactory relative to the institution's size, complexity, and risk profile. There are no material 

supervisory concerns and, as a result, the supervisory response is informal and limited. 

OVERALL CONDITION 

SVB's overall financial condition remains satisfactory. Asset quality, capital, earnings, and sensitivity to 

market risk are satisfactory, and liquidity is strong. Capital levels and planning processes are satisfactory 

despite higher bank to parent dividends in 2019. Credit risk metrics continue to trend positively 

reflecting loan portfolio composition moving towards lower risk portfolios and a favorable economic 

environment. Earnings performance remains satisfactory and sufficient to fund operations. Liquidity 

levels remain strong with sufficient levels to support the volatile day to day nature of the deposit base. 

Market risk is adequately managed with a moderate exposure to lower interest rates. 

Management is capable and effectively oversees the bank's financial performance; however, building 

and maintaining risk monitoring and governance processes commensurate with the bank's growth and 

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MATTERS REQUIRING BOARD ATTENTION AND 

EXAMINATION COMMENTS AND CONCLUSIONS 

complexity remains a challenge. To an extent, findings related to corporate governance and internal 

controls have been a thematic issue presented in SVB Internal Audit (IA) reports. Initiatives to build 

financial risk monitoring and management functions are in motion and moving at an acceptable pace. 

Development of second line-of-defense (SLoD) programs aligned with nonfinancial risk functions have 

been slow and contribute to an ongoing enforcement actions and supervisory issues. Management is 

encouraged to increase efforts in nonfinancial risk management functions to ensure appropriate 

transparency and governance practices are in-place to ensure the board is able to provide appropriate 

and effective oversight of SVB’s risk management program. Returning the BSA/AML program to 

satisfactory condition should remain a priority for 2020, ensuring customer and risk based due diligence 

controls are appropriate for SVB client activities. In addition, the Information Technology (IT) 

Management component was downgraded to less-than-satisfactory in 2019, and the overall IT function 

including risk management and SLoD present supervisory concern. SVB developed reasonable action 

plans to remediate supervisory issues, and we encourage management’s to diligently improve 

governance practices related to technology and operations. 

Redacted Redacted

DBO Examiner-in-Charge FRB Examiner-in-Charge 

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COMPLIANCE WITH ENFORCEMENT ACTIONS 

Compliance with Enforcement Action 

Internal controls within SVB’s BSA/AML compliance program were found to be deficient at the 

August 8, 2016 examination. As a result of supervisory concerns, a Memorandum of Understanding was 

entered into as-of January 30, 2017 (MOU). Compliance with the MOU was initially slow, and an MRIA 

cited in the 2016 examination remains open; however, supervisory assessment conducted during the 

November 4, 2019 BSA/AML target noted SVB had made substantial progress toward full compliance 

with the MOU.

8 At this time, the MOU remains in place as SVB has not achieved full compliance. SVB’s 

MOU compliance will be reassessed during the 2020 examination cycle. 

8 Additional details from the fall 2019 BSA/AML examination are available in the supervisory letter dated February 5th. 

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Management is evaluated against all factors necessary to operate the institution in a safe and sound manner and in 

accordance with acceptable practices. Consideration is given to technical competence, leadership, and administrative ability; 

compliance with regulations and statutes; ability to plan and respond to changing circumstances; effectiveness of 

management information systems; adequacy of and compliance with internal policies; responsiveness to recommendations 

from auditors and supervisory authorities; tendencies toward self-dealing; demonstrated willingness to serve the legitimate 

banking needs of the community; and management depth and succession. In addition, consideration is given to the extent 

that management is affected by or susceptible to dominant influence or concentration of authority and the overall 

performance of the institution and its risk profile. Consideration is given to the risk management rating, risk factors, and the 

adequacy of risk management associated with risk levels and risk trends. Consideration is also given to the impact of any 

information technology concerns on operational and other relevant risks, as well as the impact on legal or other risks of any 

findings with respect to fiduciary activities or compliance concerns. 

COMPONENT RATINGS 2/ 2 

Management / Risk Management 

Management and board oversight are adequate, though, could benefit from a more mature SLoD. While 

SVB's financial performance is satisfactory, several weaknesses in governance, risk monitoring, and 

reporting were cited during the supervisory cycle. Progress addressing a less than satisfactory 

BSA/AML/OFAC program has been a priority for several years, and significant improvement is noted 

during this supervisory cycle.9 The 2019 IT examination notes risk management and governance 

practices need improvement, and the associated SLoD has defined weaknesses.10 Management has 

developed action plans to address supervisory concerns related to technology risk, and the remediation 

efforts are noted as an organizational priority. 

SVB's risk management framework continues to mature. The SLoD has appropriate stature in the 

organization but continues to place significant reliance on senior and executive management. 

Supervisory feedback on the risk management framework has included encouragement for the design 

and implementation of processes to enable SLoD resources to provide meaningful oversight of first line 

control effectiveness through independent risk-based monitoring and periodic testing. To improve 

business line risk management and further develop risk monitoring, talent depth and breadth has been 

augmented through external hiring strategies particularly for technology and operational areas. Efforts 

to strengthen SLoD for financial risk categories appear organized and are expected to contribute to a 

more effective global risk management program in 2020. 

The IA program remains effective and provides the board and management with independent and 

objective assessments of internal controls, governance, and risk management processes. IA has 

proactively worked to ensure their capabilities are scalable, sustainable, and maintain pace with the 

bank's size and complexity. 

9

 The February 5th supervisory letter and this report's Other Matters page provides additional information on the assessment of 

SVB's BSA/AML compliance program and progress addressing the associated MOU. 10 IT management deficiencies were reported in the June 5th supervisory letter and resulted in a component downgrade. See 

the June letter for details, and this report's Other Matters page for a summary. 

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ANALYSIS OF FINANCIAL FACTORS 

Asset Quality - 2 

Asset quality remains satisfactory with stable asset quality metrics since the previous exam. Sound 

underwriting, credit structuring, and effective credit risk management contribute to manageable levels 

of problem assets. Board and management oversight continue to provide strategic direction, a sound 

policy framework, and comprehensive monitoring of credit conditions. 

Classified assets decreased $32 million from the prior full scope examination and the Adversely 

Classified items ratio declined to 20 percent from 23 percent. The weighted adversely classified ratio is 

4.62 percent. Classified Items are mostly contained in the higher risk ID and leveraged portfolios that 

comprise 19 percent of commitments but account for 75 percent of adverse classifications. Conversely 

the PES portfolio consisting mostly of capital call lines comprise 56 percent of commitments and only 

1 percent of adverse classifications. Concentration risk within the PES portfolio is increasing as a result 

of continued high growth rates. Nonetheless, risk appears manageable given the portfolio’s favorable 

credit metrics including lower rates of adverse classifications and losses PES and residential mortgage 

lending have comprised 83 percent of loan growth since the previous exam. 

The ALLL level is appropriate and directionally consistent relative to portfolio growth, quality, and mix. 

Management’s implementation of the Current Expected Credit Loss (CECL) methodology is proceeding 

according to plan. While results of parallel testing are on-going, the expected increase in reserve 

requirements for higher loss ID credits will be largely offset by reductions in reserves required for the 

PES portfolio’s history of low losses. Overall impacts of CECL adoption are expected to be modest and 

not affect credit strategy. 

Board and management oversight and underwriting policies and practices are appropriate and 

consistent with SVB’s risk appetite and strategy. During 2019, executive management began an initiative 

to establish processes to measure, monitor, and control credit risk from lending activities independent 

of loan approval. To study and provide recommendations regarding the credit risk administrative 

structure, SVB engaged consultants to review risk taking, risk acceptance, and risk management 

processes. The board’s Credit Committee approved a plan to reorganize the Credit Department to more 

clearly separate first line-of-defense (FLoD) functions of loan underwriting and approval from SLoD 

functions of risk monitoring and reporting. 

Execution of the transition plan is scheduled through Q1 2021 to ensure that credit approval processes 

continue to work effectively and FLoD and SLoD staffing levels are appropriate. The transition begins in 

Q1 2020 with Chief Credit Officer (CCO) reporting changing from the President to the Chief Risk Officer. 

Through 2020, loan committees will be eliminated and the FLoD and SLoD will operate with new credit 

approval authorities and accountabilities. The extended transition period continues through Q1 2021 

and provides time for IA and Internal Loan Review (ILR) to identify emergent gaps in underwriting and 

internal controls. 

Policies, procedures, underwriting standards, and loan grading guidelines continue to be satisfactory 

with periodic review and updates to ensure prescriptive standards for specific borrower and 

underwriting methods. Management continues to be receptive to feedback and made several changes 

to risk rating guidelines based on examiner recommendations to calibrate investor dependent credit risk 

grading with investor incentives. Examiners continue to work with management to increase the 

knowledge base in recurring revenue lending. Recurring revenue lending amounts to approximately 

$1.1 billion or 22 percent of capital, and is a portfolio segment likely to see growth as SVB continues 

providing working capital loans to clients in the software services sector. 

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ANALYSIS OF FINANCIAL FACTORS 

Credit risk management information systems continue to provide comprehensive and timely reporting 

that allows the board and management to monitor credit risk and make effective decisions. Credit 

administration relies on a 

Redacted

 based system that provides management the ability to create custom 

reports with extensive drill down capabilities that enable the identification of trend and source 

information. Establishing a fully independent SLoD under the CCO will help ensure that development of 

future MIS is not unduly influenced by areas primarily engaged in extending credit. 

ILR remains an effective source of validating credit risk ratings, compliance with policies and procedures, 

and measurement and monitoring lending unit quality control. ILR is proactively evaluating functional 

staffing levels, process efficiency, and improving the skills of personnel to maintain effectiveness in 

alignment with SVB’s continued growth in loan volume, complexity of products, and geographic 

expansion. 

Investment Securities Portfolio 

The quality of the investment portfolio remains satisfactory, and is significant at $27 billion, 

or40 percent of total assets. The portfolio is minimally pledged and provides a high level of cash flows, 

and contingent liquidity. Composition is generally unchanged across exams with only minor changes. 

The portfolio is evenly distributed by book value across HTM and AFS classifications, with HTM securities 

representing 53 percent of security holdings. 

Credit risk in SVB's investment portfolio is low. The US government and its agencies back the majority of 

the portfolio, with credit-sensitive securities limited to municipals, which remain low at 6.42 percent of 

total investment book value. 

Earnings - 2 

Earnings are satisfactory and remain sufficient to support operations. Year-to-date net income of 

$783 million resulted in a return on average assets of 1.75 percent, a slight increase from the previous 

exam. Higher loan yields and modest loan growth were the primary drivers of income gains, which were 

partially offset by an increase in the cost of funds and higher level of interest-bearing deposits. Despite 

an increase in earnings, asset growth outpaced capital growth. The annualized growth rate of Tier One 

Capital, at 9.42 percent, was materially outpaced by total asset growth of 17 percent. 

Earnings have been sustainable in recent history but are projected to flatten going forward as the 

impact of recent rate cuts are reflected in asset yields. Interest and noninterest income has improved 

from sources such as loan growth and foreign exchange commission volumes, while the bank has been 

able to keep interest expense low relative to peer levels. 

Budgeting processes are adequate and assumptions are reasonable. Senior management has sufficient 

oversight of earnings, and on a quarterly basis, the executive committee monitors budget performance. 

Budget and profit planning practices are driven and reported on a consolidated basis by business line, 

rather than by entity such as SVB. As operations at the holding company or non-bank activity increases, 

management may want to consider developing and tracking performance to a bank-only budget. 

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ANALYSIS OF FINANCIAL FACTORS 

Capital - 2 

Capital remains satisfactory. Capital levels and ratios are appropriate given the risk profile of the bank 

with cash and low risk investments totaling almost half of total assets. Nonetheless, capital ratios 

declined year-over-year and remain well below peer group averages, due in part to strong asset growth 

and increased dividends paid to the parent company. The bank to parent dividend payout ratio policy 

limit increased from 30 percent of previous quarter’s net income in 2018 to 50 percent in 2019. In 

addition, two special dividends were paid out in 2019 resulting in an 81 percent dividend payout ratio. 

The high dividend payout was due to acquisitions, stock repurchases, and liquidity build at the parent 

company, and is not expected to continue. In discussions with examiners, management confirmed high 

dividend rates resulting in capital accretion lagging asset growth is not sustainable or proposed. 

Capital planning and oversight is acceptable, including robust discussion and detailed reporting of capital 

matters at the board and managerial level. The capital plan and stress testing are conducted annually. 

Capital targets and triggers for 2019 were slightly changed, indicating active management of capital 

planning processes. In addition, the capital stack now specifically allocates capital buffers to the risk 

categories of credit risk, reputational risk, interest rate risk, and operational risk. This process is 

acceptable for the current size and complexity of SVB, although it would benefit from more 

transparency around major assumptions and identification of and rational for management overrides. 

Liquidity - 1 

Liquidity levels are strong. SVB’s fed funds and interest bearing bank balances totaled $6.3 billion or 

9.72 percent of total assets, well above the peer average of 2.76 percent. Additionally, unencumbered 

securities of $24 billion are available to meet current and projected cash flow needs, bringing total on 

balance sheet liquidity to $30 billion, or 45 percent of total assets. The bank has sufficient levels of 

secondary funding sources to support the sometimes volatile, funding flows. The bank maintains diverse 

contingent sources of liquidity including available capacity of $8 billion in secured lines and $2 billion in 

unsecured federal funds borrowing lines with correspondent banks. 

Core deposits totaled $55 billion or 83 percent of total assets and 92 percent of total deposits. Total 

deposits stood at $60 billion, growing 23 percent over the prior year. The bank is experiencing pricing 

pressure in deposits, with total interest-bearing funding costs increasing 29 basis points over prior year 

to 0.35 percent (peer 0.95 percent). This is due to the bank having to raise rates to retain and grow on 

balance sheet deposits, primarily in money market accounts. The bank is now working on initiatives to 

reduce its funding costs. 

SVB continues to experience intermittent large and volatile fund flows. The deposit base is generally 

well diversified however there are some very large depositors with large volatile movements of funds. 

Based on prior year MRA requirements, the bank analyzed its volatile fund flows and has now 

implemented a $6 billion liquidity buffer requirement. Funds management practices and board oversight 

is adequate. Policies ensure sufficient funding for both anticipated and unanticipated events, including 

establishing a liquidity buffer for unexpected liquidity stress events. The Contingency Funding Plan and 

liquidity stress testing, which has been updated and improved since the last examination, are 

satisfactory and in line with interagency guidance. 

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ANALYSIS OF FINANCIAL FACTORS 

Sensitivity to Market Risk - 2 

Sensitivity to market risk remains satisfactory. The balance sheet is asset sensitive having exposure to 

earnings and capital pressure in a falling rate environment. The asset sensitive balance sheet is primarily 

based on a majority of assets being variable rate, and a prime loan interest rate swap program has 

begun to reduce interest rate risk exposure. Although the bank has increased its buying of longer dated 

securities, lower rates have offset the increase in duration due to prepayment and call features. The 

securities portfolio average duration is 3.4 years, down from 3.9 years at the previous examination. 

Derivative activity continues to increase with a notional amount of $13 billion, a 93 percent increase 

from prior year. The growth in derivatives is primarily driven by the large increase in IRR swap hedging 

and increased foreign exchange derivative activities for clients. 

The bank’s asset liability management (ALM) model reports that net interest income (NII) would 

decrease 9.7 percent and 18 percent for negative 100 and 200 basis point rate shocks, respectively. A 

rate shock of negative 200 basis points would decrease NII by $447 million and decrease economic value 

of equity by $303 million from the base scenario. The bank is within the policy limit of 10 percent for the 

12-month negative 100 and 200 rate shocks for earnings at risk, an improvement from the previous 

exam. However the shocks still result in the more conservative inner limits being exceeded. 

Overall, board and management oversight are adequate. Policies are generally reviewed and approved 

with appropriate frequency and include approved scenarios and limits. However, due to the second line 

working on a master policy to take ownership of Treasury policies and limits in early 2020, the IRR policy 

has not been reviewed and approved since April 2018. Internal controls, model risk management, and 

IA’s oversight over the market risk function remain adequate. The ALM model, 

Redacted

, was 

successfully implemented in 2018. Model inputs and assumptions are independently validated with 

minimal issues, and are in line with internal policy as well as regulatory guidance. A second line market 

risk manager hired in 2018 has made good progress in 2019 staffing his team and implanting an 

adequate market risk oversight program. 

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SUMMARY OF ITEMS SUBJECT TO ADVERSE CLASSIFICATION 

CATEGORY Substandard Doubtful Loss Total 

Loans and Leases 934,211 93,710 0 1,027,921 

Securities 0 0 0 0 

OREO 0 0 0 0 

Other Assets 0 0 0 0 

Other Transfer Risk 0 0 0 0 

Subtotal 0 0 0 0 

Contingent Liabilities 0 0 0 0 

Totals at Current Exam [9/30/19] 934,211 93,710 0 1,027,921 

Totals at Prior Exam [2/28/19] 1,000,942 96,322 2,247 1,099,511 

SUMMARY OF LISTED FOR SPECIAL MENTION 

Current Exam Prior Exam 

9/30/19 2/28/19 

Loans / Leases 171,591 235,869 

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OTHER MATTERS 

Bank Secrecy Act / Anti-Money Laundering 

The BSA/AML program is less than satisfactory. As detailed in the Supervisory Letter dated February 5th, 

considerable progress was made during the 2019 exam cycle; however, further improvement is required 

in the internal controls pillar to fully remediate the MRIA and reach full compliance with the MOU. 

Management has decreased residual BSA/AML and OFAC risk in the past year by implementing and 

validating effective OFAC screening systems and strengthening internal controls over the CDD process. 

Aside from stabilization of recently implemented CDD procedures, improvement needs to occur in the 

tracking of workflow to complete CDD reviews in a timelier manner. Internal controls over suspicious 

activity monitoring and reporting are now adequate. The Financial Crimes Risk Management unit has 

been stabilized, CDD leadership and data analytics are noted improvements. The BSA training program is 

adequate. IA continues to effective and accurately conduct independent testing of SVB’s BSA/AML and 

OFAC programs. The next supervisory assessment of the MRIA and MOU compliance is planned for the 

2020 cycle. 

Information Technology 

Overall performance of the IT function is satisfactory; however, functional management is less than 

satisfactory. Conclusions from a comprehensive examination of SVB’s IT function were communicated 

through a report of examination issued on June 5, 2019. IT Audit, Development and Acquisition, and 

Support and Delivery components remain satisfactory; however, board and senior management 

oversight of IT risk is less than satisfactory, and multiple weaknesses in governance and risk 

management processes were identified and require attention. Examiners noted operational and security 

metrics relied on by board and management committees were not sufficiently meaningful, and firewall 

administration requires improvement. IA has identified several functional areas needing improvement 

including patch management, identity and access management, and governance over change 

management. Additionally, while IA noted the data governance program has made significant progress, 

a large amount of critical work remains to define a data strategy that will bring the program to a state of 

maturity necessary to meet the bank’s needs. Management is focused on improving controls, 

transparency, and reporting regarding systems and information security risk. A change in Chief 

Operating Officer resulted in a complete administrative evaluation, and led to a significant redesign of 

functional governance. Roles and responsibilities for several functional managers were changed, and 

SVB is seeking a Chief Information Officer (CIO) capable of overseeing all of IT apart from risk and 

security. A national search has brought in additional talent to the IT function, and management expects 

to fill the CIO role in Q1 2020. Filling the CIO position and remediating multiple MRA are reported as 

priorities for the IT function in 2020. The Enterprise Risk Management function reports significant 

progress addressing an MRA requiring improvement to the SLoD for IT, and all MRA will be evaluated in 

a February 18th examination. 

Page 14 of 15 

BOG-FRS - Public Release, April 2023
 

 

 

 

 

RESTRICTED – FR 

SIGNATURE OF DIRECTORS 

We, the undersigned directors of Silicon Valley Bank, have personally reviewed the contents of the 

report of examination as of September 30, 2019. 

Signature of Directors Date 

NOTE: This form should remain attached to the report of examination and be retained in the bank’s file for review 

during subsequent examinations. The signature of committee members will suffice only if the committee includes 

outside directors and a resolution has been passed by the full board delegating the review to such committee. 

Page 15 of 15 

BOG-FRS - Public Release, April 2023
RESTRICTED – FR 

CONFIDENTIAL
 

BOG-FRS - Public Release, April 2023
Year Elected Occupation or Principal Business 

Name * Year of Birth to Board Affiliation 

Chairman of SVB and SVBFG. Redacted Dunbar, Roger F.1,4,5,6 0 2004 Retired E&Y executive 

Redacted President and CEO of SVBFG. 

Becker, Greg W. 0 2011 CEO of SVB 

Chairman and CEO of Benhamou 

, Eric A.4,5,6 Redacted Benhamou 0 2005 Global Ventures 

President and CEO of an online 

financial services company. 

Redacted Previously an executive at 

Clendening, John S.2,3 0 2017 Charles Schwab 

Redacted Friedman, Joel P.4,5,6 1 2004 Retired E&Y executive 

CFO of a 3D software Redacted 

Jabal, Kimberly A.1 0 2018 development company. 

CEO of Coursera and online 

education company and founding 

Maggioncalda, Jeffrey N.2,3 Redacted 1 2012 CEO of Financial Engines 

Former Under Secretary for 

Domestic Finance US Department Redacte Miller, Mary J.1,4 d 1 2015 of the Treasury 

Managing Partner and co-founder 6 Redacte Mitchell, Kate D.3,5, d 1 2010 of Scale Venture Partners 

Former Deputy Comptroller of 

the Currency. EVP of Washington 

, John F.1,2,3,6 Redacted Robinson 0 2010 Mutual Bank 

Founder of Staglin Family 

Staglin, Garen K.2,5,6 0 Redacted 2011 Vineyards 

Mathews, Kay1 Redacted 0 2019 Retired E&Y executive1 

1

 Kay Mathews was appointed as a director during the September 2019 board meeting 

BOG-FRS - Public Release, April 2023

CONFIDENTIAL SECTION

DIRECTORS
   

   

   

                     

              

                               

                   

                 

                  

  

RESTRICTED – FR

CONFIDENTIAL SECTION

DIRECTORS

*Number of meetings missed of a total of 8 held during 2019.

Regular schedule of directors’ meetings: Quarterly

Fee paid each director:	 Equity award value $125M ($200M for Chairman), cash retainer $70M,

Chairperson Fees Board $90M, Audit $20M, Compensation, Finance, and Risk

$15M, Credit and Governance $12M. Committee fees Audit $25M,

Compensation and Finance $12M, Credit, Governance, and Risk $8M.

Committees:

1. Audit

2. Compensation

3. Credit

4. Finance

5. Governance

6. Risk

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BOG-FRS - Public Release, April 2023
 

CONFIDENTIAL SECTION 

EXECUTIVE OFFICERS 

RESTRICTED – FR 

Name and Title 

Area of 

Responsibility 

Year of 

Birth 

Years 

with 

Bank 

Years in 

Present 

Position 

Compensation 

(Bonus) 

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	 BOG-FRS - Public Release, April 2023

Redacted Becker, Greg W. CEO 26 11 $953,654 

($1,745,000) 

Beck, Dan CFO Redacted 2 2 $600,000 

($340,286) 

Redacted Cadieux, Marc C. CCO 27 6 $625,000 

($465,000) 

China, John D. SVB Capital Redacted 23 1 $600,000 

($650,000) 

Redacted Cox, Phil COO 11 1 $600,000 

($175,000GBP) 

Descheneaux, Michael R. President SVB Redacted 2 2 $750,000 

($965,000) 

Redacted Draper, Michelle Chief 6 6 $450,000 

Marketing ($500,000) 

Officer 

Edmonds-Waters, Chief Human Redacted 15 11 $435,000 

Christopher D. Resources ($425,000) 

Officer 

Izurieta, Laura H. CRO Redacted 3 3 $550,000 

($500,000) 

Peters, John Head of Redacted 13 5 $400,000 

Internal Audit ($413,718) 

Zuckert, Michael S. General Redacted 5 5 $550,000 

Counsel ($490,145) 
 

 

 

 

 

 

 

 

 

 

 

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CONFIDENTIAL SECTION 

MANAGEMENT AND CONTROL 

1.	 Discuss any other relevant matters regarding the bank’s management not previously addressed. 

All relevant matters have been discussed within the open section of the report 

2.	 If the bank is in a weakened or extended condition, what aid may be expected from shareholders 

or others? 

N/A the bank is not in a weakened condition 

3.	 (a) List each major shareholder (5% or more) of the bank and the respective percentage of 

ownership. When the major shareholder is a bank holding company, list its major 

shareholders and the percent controlled. 

SVBFG is the primary owner of the bank. The largest controlling interests of the holding Co.
 

are listed below.
 

Shareholder Number of Shares Percentage Owned
 

The Vanguard Group 5,624,165 10.91%
 

Blackrock Inc. 3,650,683 7.08%
 

State Street Corp. 2,717,793 5.27%
 

(b)	 Comment on the extent to which a particular director(s), shareholder(s), or executive 

officer(s) controls or dominates the bank’s policies and operations. 

CEO Becker is the most dominate figure at the institution, but not to an extent that raises any 

concerns. 

(c)	 Comment on any adverse effects of insiders on operating policies, procedures, or the 

overall financial condition of the bank. 

N/A 

(d)	 Provide the aggregate amount of borrowings by directors, executive officers, principal 

shareholders, and their related interests (as defined in Regulation O). Describe any material l 

or other transactions between the bank and its executive officers, directors, or its direct or 

indirect principal shareholder(s) and their interest(s), and assess the impact of the transactio 

the bank. (An interest would include any holding company affiliate or outside business intere 

a bank or holding company insider in which 25 percent or more is controlled.) 

$37,218M 

4.	 Has any director, officer, or employee allegedly embezzled, abstracted, or otherwise criminally 

misused the funds of the bank since the previous examination? No. If so, have proper 

authorities been notified? N/A. If proper authorities have not been notified, explain why. 

N/A 

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and DBO Dedicated EIC

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CONFIDENTIAL SECTION 

RATINGS AND GENERAL INFORMATION 

1.	 State the bank’s rating at this examination and the date and rating at the last examination. 

Briefly discuss the rationale for the rating and reasons for any departures from Federal Reserve 

guidelines with respect to the CAMELS component ratings and the composite rating. 

CAMELS Risk Management Agency Date 

Current 222212/2 2 FRB 11/29/19
 

Prior 222212/2 NA FRB 10/01/18
 

Composite 

Rationale for ratings are discussed in the open section of the report and are in alignment with 

federal reserve guidelines. 

Risk Management 

Rationale for risk management rating is discussed in the open section of the report and are in 

alignment with federal reserve guidelines. 

2.	 Discuss the prospects of the bank. 

Prospects for the bank are favorable. SVB has worked to create and maintain a dominant market 

position in the venture capital community. Competition from more nimble fintech competitors (some 

of which SVB had provided credit or facilitated market capital investments) is acknowledged by bank 

management as the most serious long term concern; however, significantly larger, systemically 

important financial institutions and other regional banking organizations continue to target the 

innovation economy as a strategically important segment. Even if SVB loses some market share the 

growing venture economy should enable them to remain a relevant financial institution. 

3.	 Was a meeting held with the full board of directors to discuss matters subject to criticism? Not 

yet. If not, give the names of directors and officers with whom the bank’s condition was 

discussed. 

A meeting was held with executive management on January 17th, in attendance were CEO Becker, 

President Descheneaux, CFO Beck, CRO Izurieta, COO Cox, CCO Cadieux, CAE Peters, and several 

senior managers. All findings and conclusions were discussed during the meeting; emphasis was 

placed on capital planning specific to the organization’s unique risk profile (particularly given the 

volume of dividends paid in 2019), and risk management (FLoD governance practices, SLoD 

challenge role) as SVB continues to grow and add complexities associated with global operations. 

FRB and DBO officials, FRB CPC 

Redacted Redacted

 are scheduled to meet with 

the bank’s directors during the board’s April 23rd meeting. 

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4. Provide the composite ratings and dates of the most recent bank specialty examinations (EDP, 

trust, consumer, CRA) and bank holding company inspection, if applicable. If any specialty 

examination or inspection resulted in a problem rating, discuss any adverse impact of those 

particular weaknesses on the overall safety and soundness of the bank. 

Examination Type (if applicable) Examination Start Date Composite Rating 

Bank Holding Company (top tier) 12/31/18 222/22 

Trust NA NA 

IT 02/25/19 2322/2 

Consumer Compliance 10/22/18 2 

CRA 10/22/18 Satisfactory 

5. Loan Sampling 

Summary of Loan Coverage ($,000) 

Number of Lines Worked 183 

Number of Loans Worked (excluding Insiders) 377 

Number of Loans Worked (Insiders only) 5 

Dollar Volume Worked (including Off Balance Sheet) $5.73 billion 

Dollar Volume Worked (Insiders only) $37,218 

Total Loans (including OBS and Insiders) 382 

Total Loans Coverage Percent 13.3% 

Dollar Volume Commercial Worked (including OBS) $5.73 billion 

Total Commercial (including OBS) 382 

Commercial Loans Coverage Percent 13.3% 

Number 

of 

Relation 

ships 

Worked 

Number 

of Lines 

Worked 

Dollar 

Volume 

Worked 

(incl. OBS) 

Total Loans 

(incl. OBS) 

Total 

Loans 

Coverage 

Percent 

Dollar 

Volume 

Com'l 

Worked 

(incl. OBS) 

Total Com'l 

(incl. OBS) 

Com'l 

Loans 

Coverage 

Percent 

183 382 $5.73 

billion 

382 13.3% $5.73 

billion 

382 13.3% 

6. Suggestions for next examination: 

Two weeks with only one week onsite, and FRB meetings for a portion of that week, is not enough 

time allocated for a roll up exam of an institution of this size and complexity. This resulted in an 

extended write up period for the OM and EIC. 

BOG-FRS - Public Release, April 2023
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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DBO Confidential – Examination Information 

DBO EXAMINATION INFORMATION S&S IT TRUST 

Examination Entry Date 12/09/2019 

Field Completion Date 12/11/2019 

Exit Meeting Date 1/17/20 

Submitted for Review Date 3/16/20 

Quarter-end Call Report Date 09/30/2019 XXXXXXX 

Trial Balance Date 09/30/2019 XXXXXXX 

Entry Date of Last Federal Exam 10/01/2018 

Entry Date of Last DBO Exam 10/01/2018 

Type of Examination (I, C, J) J 

Processor (DBO, Federal, Other State) FRB 

IT Complexity (C, B, A) XXXXXXX XXXXXXX 

Billable (Yes, No) (S&S FC 501, Trust FC 408) NO 

EXAMINER ASSIGNMENT 

S&S IT TRUST 

Training Net Hrs. Training Net Hrs. Training Net Hrs. 

Redacted

DLBE EIC 160 

Redacted

DLBE AM 120 

Redacted

DLBE OM 120 

Total Training / Net Hours 0 400 0 0 0 0 

Budgeted Hours 0 0 0 

Variance 0 0 0 

Federal Hours 716 0 0 

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DBO Confidential – Corporate Information 

BANK AND HOLDING COMPANY 

BANK 

1. Name of individual or group with a controlling interest: SVB Financial Group 

a. Number and percentage owned in own name(s): 475,000 shares / 100% 

b. Number and percentage controlled: NA 

c. Date control acquired: 04/23/1982 

d. Was approval or exemption obtained pursuant to F.C.
 

Section 1250 et seq.? Yes 

2. Were proxies solicited by anyone other than the 

management group? No 

3. Are there any formal shareholder's agreements or voting 

trust agreements for the purpose of voting shares of the bank?No 

4. Date of annual shareholders' meeting: April 

5. Date of most recent annual shareholders' meeting: 04/25/2019 

6. Is the number of directors in conformance with FC 1171 

and the bylaws or articles of incorporation? Yes 

HOLDING COMPANY 

1. Name of individual or group with a controlling interest: None 

a. Number and percentage owned in own name(s): NA 

b. Number and percentage controlled: NA 

c. Date control acquired: NA 

d. Was approval or exemption obtained pursuant to F.C.
 

Section 1250 et seq.? NA
 

2. Were proxies solicited by anyone other than the 

management group? No 

3. Are there any formal shareholder's agreements or voting 

trust agreements for the purpose of voting shares of the bank?No 

4. Date of annual shareholders' meeting: April 

5. Date of most recent annual shareholders' meeting: 04/25/2019 

6. Is the number of directors in conformance with FC 1171 

and the bylaws or articles of incorporation? Yes 

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DBO Confidential – Holding Company Information 

1. What is the date of the most recent examination of holding company by the Federal Reserve 

Bank (FRB) and their rating of the holding company? 

The most recent FRB full scope safety and soundness inspection of SVB Financial Group (SVBFG) 

was completed on January 17, 2019, with results communicated in a Report dated April 11, 2019. 

Financial information used in the report was as of September 30, 2018. 

SVBFG remains in satisfactory condition and is rated a composite “2” according to the Federal 

Reserve System’s Uniform Bank Holding Company rating system. The organization has designed a 

broad risk-management framework, though design and build-out of credible second lines of 

defense for defined risk areas has been slow. Risk monitoring and reporting remain fair; Silicon 

Valley Bank (SVB) continues to operate under an enforcement action for compliance with Bank 

Secrecy Act/Anti Money Laundering (BSA/AML) and Office of Foreign Assets Control (OFAC). The 

company’s consolidated financial condition remains satisfactory, with noted strength in liquidity. 

Prior regulatory findings have been or are being addressed in an acceptable manner and the 

parent company and nonbanking activities do not pose a material financial risk to SVB. 

2. Comment on actions taken to correct any significant deficiencies noted in the most recent 

FRB examination report. 

The Report dated April 11, 2019 contained two carry forward MRA’s and zero new MRA or 

MRIA’s. One of the two, Rationale & Support of DFAST Framework, was closed during the 2019 

cycle as communicated in a Supervisory Letter on November 19, 2019. The other MRA, regarding 

the Investment Tracking Framework of the company, has been addressed and is pending closure 

as of this writing. 

During the 2019 cycle, two new MRA were opened, both are noted in a SL dated 

November 19, 2019 communicating the conclusions of a Global Risk Management / Corporate 

Governance target examination that began on July 29. 

The Enterprise Risk Management (ERM) Controls Monitoring MRA requires the completion of a 

control identification, self-testing, and monitoring program for implementation in the first line of 

defense. The second line of defense is required to oversee the first line in this effort and perform 

periodic risk-based monitoring. Management has developed an action plan with completion 

targeted for December 31, 2020 and Internal Audit testing by March 31, 2021. 

The Model Overlay and Assumption Governance MRA requires management to ensure all 

significant assumptions, model adjustments, and overlays are clearly identified and discussed 

when disclosing stress-testing results. Management has developed an action plan with 

completion targeted for June 30, 2020 and Internal Audit testing by September 30, 2020. 

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DBO Confidential – Holding Company Information 

3. List principal affiliated companies and their principal activity. (Attach most recent 

consolidated FS and FS of holding company only.) 

SVB Financial Group is the financial holding company which owns 100% of Silicon Valley Bank, 

and provides diversified financial services to corporate clients in the technology, life sciences, 

venture capital/private equity and premium wine industries. SVBFG offers these services 

through three principal reportable segments: Global Commercial Bank, SVB Capital, and SVB 

Private Bank. Global Commercial Bank houses Silicon Valley Bank, SVB Global, and Sponsored 

Debt Funds and Strategic Investments (SVBFG-owned funds). SVB Capital, which is the venture 

capital (VC) investment arm of SVBFG, focuses primarily on funds management. SVB Private 

Bank is the private client services division. Bank subsidiaries formed to provide off-balance 

sheet investment products for bank clients include SVB Securities, a broker/dealer; SVB Asset 

Management, a registered investment advisor; and SVB Wealth Advisory, a registered 

investment advisor that provides investment advisory services for private bank clients. SVB 

Global houses the company’s international expansion initiatives, manages the international VC 

client portfolio, and oversees the operations of international offices in the United Kingdom, 

Israel, and China. These operating entities work together to meet the needs of clients at all 

stages of their business life cycles, and support each other through a vigorous circle of referrals 

and interlocking relationships. 

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CONFIDENTIAL SECTION 

COMPARATIVE BALANCE SHEET STRUCTURE 

Assets 09/30/19 12/31/18 

Total Loans and Leases 31,048,577 28,338,280 

Less: ALLL 304,283 280,903 

Loans and Leases (net) 30,744,294 28,057,377 

Interest-Bearing Balances 5,772,549 2,890,855 

Federal Funds Sold and Securities Purchased Under Agreements to Resell 0 0 

Trading Account Assets 184,560 104,134 

Securities: HTM (at amortized cost) 14,407,078 15,487,443 

AFS (at fair value) 12,736,927 7,587,347 

Total Earning Assets 64,211,707 54,245,384 

Cash and Noninterest-Bearing Balances 547,040 517,613 

Premises and Fixed Assets 142,811 59,296 

OREO 0 0 

Intangible Assets 0 0 

Other Assets 2,084,138 1,240,938 

TOTAL ASSETS 67,059,614 56,139,644 

Liabilities 

Deposits 55,400,780 45,256,654 

Federal Funds Purchased & Securities Sold Under Agreement to Repurchase 0 319,414 

Other Borrowed Money 104,976 312,380 

Other Liabilities 1,455,080 864,142 

Subordinated Notes and Debentures 0 0 

Total Liabilities 62,140,847 51,584,831 

Equity Capital 

Perpetual Preferred Stock 0 0 

Common Equity Capital (includes net unrealized holding gains or losses on AFS 

securities) 4,918,767 4,554,813 

Other Equity Capital 0 0 

Total Equity Capital
 4,918,767 4,554,813 

TOTAL LIABILITIES AND EQUITY CAPITAL
 67,059,614 56,139,644 

Off-Balance Sheet Items 

Unused Loan Commitments 19,606,629 16,734,357 

Letters of Credit 2,840,901 2,236,747 

Interest Rate Contracts 5,230,808 1,232,688 

Amounts are shown to the nearest thousand dollars. 

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CONFIDENTIAL SECTION 

COMPARATIVE STATEMENT OF INCOME 

Bank Income Statement and Change in Equity Capital Interim Period Year Ended Year Ended 

09/30/19 12/31/18 12/31/17 

Interest Income 

Interest and Fee Income on Loans and Leases
 1,201,171 1,358,480 1,025,709 

Interest on Securities
 441,543 572,916 415,875 

Other Interest Income
 75,049 37,964 23,625 

Total Interest Income 1,717,763 1,969,360 1,465,209 

Interest Expense 

Interest on Deposits 111,827 28,130 7,633 

Interest on Federal Funds Purchased and Other Borrowings 3,519 14,579 541 

Interest on Subordinated Notes and Debentures 0 0 467 

Total Interest Expense
 133,682 43,884 9,685 

Net Interest Income
 1,584,081 1,925,476 1,455,524 

Noninterest Income 

Service Charges on Deposit Accounts
 61,690 71,775 55,528 

Other Fee Income
 161,374 144,700 157,115 

Other Noninterest Income
 263,207 325,013 185,241 

Total Noninterest Income 486,271 541,488 397,884 

Noninterest Expense 

Salaries and Employee Benefits
 557,326 689,880 570,838 

Premises and Fixed Assets Expense (net)
 50,590 63,640 59,638 

Other Noninterest Expense
 297,588 358,066 316,301 

Total Noninterest Expense 905,504 1,111,586 946,777 

Provision for Loan and Lease Losses 80,828 84,291 86,058 

Securities Gains or Losses (3,905) (740) (8,783) 

Net Operating Income (before tax) 1,080,152 1,270,395 811,790 

Applicable Income Taxes 297,053 336,754 365,021 

Net Operating Income (after tax) 783,099 933,641 446,769 

Extraordinary Credits and Charges (net of income tax) 0 0 0 

Net Income 783,099 933,641 446,769 

Dividends Declared 633,000 140,000 0 

Sale or Purchase of Capital 24,995 21,469 28,384 

Other Increases/Decreases (includes changes in net 

Unrealized gains or losses on AFS securities) 189,442 (29,746) (46,038) 

Net Change in Equity Accounts 364,536 792,272 339,115 

Amounts are shown to the nearest thousand dollars. 

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CONFIDENTIAL SECTION 

CAPITAL CALCULATIONS 

09/30/19 12/31/18 

Common Equity Tier 1 Capital 

Common stock + related surplus 1,433,588 1,408,593 

Retained earnings 3,348,264 3,198,747 

Accum Other Comprehensive Inc (AOCI) 136,915 (52,527) 

Common equity tier 1 minority interest 0 0 

Common equity tier 1 capital elements 4,918,767 4,554,813 

Less: 

Goodwill 0 0 

Intangible assets 0 0 

Deferred tax assets 0 0 

Other adjustments 143,367 (49,876) 

Common Equity Tier 1 Capital 4,775,400 4,604,689 

Additional Tier 1 Capital 

Additional tier 1 instruments + related surplus 0 0 

Non-qualifying instruments subject to phase-out 0 0 

Minority interests not incl. in common equity 0 0 

Less: Additional tier 1 capital deductions 0 0 

Additional tier 1 capital 0 0 

Tier 1 Capital 4,775,400 4,604,689 

Tier 2 Capital 

Tier 2 capital instruments + related surplus 0 0 

Non-qualifying instruments subject to phase-out 0 0 

Total minority interest not included in tier 1 0 0 

Allowance for loan losses includable in tier 2 367,319 336,086 

Unrealized gains on AFS includable in tier 2 0 0 

Less: Tier 2 capital deductions 0 0 

Tier 2 Capital 367,319 336,086 

Total Capital 5,142,719 4,940,775 

Risk-Weighted Asset Calculation 

Risk-weighted balance sheet assets 34,102,429 30,716,676 

Risk-weighted off-balance sheet items 7,495,530 6,387,405 

Market risk equivalent assets 0 0 

Gross Risk-Weighted Assets 41,597,959 37,104,081 

Less: Excess ALLL and ATRR 0 0 

Total Risk-Weighted Assets 41,597,959 37,104,081 

Adjusted Average Total Assets 63,854,825 56,822,789 

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CAPITAL CALCULATIONS 

HOLDING COMPANY NAME: SVB FINANCIAL GROUP 

PARENT ONLY AND CONSOLIDATED BALANCE SHEETS 

AS OF 9/30/2019 (In Thousands) 

Parent Only Consolidated 

Assets 

Cash and due from banks 631,518 6,440,258 

Federal funds sold 

Investment in securities 184,721 27,719,128 

Loans and leases, net 15,290 30,759,584 

Trading Assets 214,029 

Investments in subsidiaries 5.363,314 

Premises and equipment, net 73,095 262,655 

Investment in unconsolidated subsidiaries and associated -13,089 73,918 

companies 

Other assets 499,379 2,997,187 

Total Assets 6,754,228 68,466,759 

Liabilities 

Deposits 59,783,351 

Other borrowed money 64,233 211,735 

Trading Liabilities 148,535 

Subordinated notes and debentures 697,227 697,227 

Balance due to bank subsidiaries 2,200 

Balance due to non-bank subsidiaries 8,810 

Other Liabilities 91,078 1,577,442 

Total Liabilities 863,548 62,418,290 

Stockholders' Equity 

Perpetual preferred stock 

Common stock 52 52 

Surplus 1,441,730 1,441,730 

Retained earnings 4,312,745 4,312,745 

Accumulated other comprehensive income 136,153 136,153 

Noncontrolling (minority) interest in consolidated subsidiaries 157,789 

Total Stockholders' Equity 5,890,680 6,048,469 

Total Liabilities and Stockholders' Equity 6,754,228 68,466,759 

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CAPITAL CALCULATIONS 

HOLDING COMPANY NAME: SVB FINANCIAL GROUP 

PARENT ONLY AND CONSOLIDATED BALANCE SHEETS 

AS OF 9/30/2019 (In Thousands) 

Parent Only Consolidated 

Interest Income 

Interest and fees on loans 1,202,467 

Interest income on balances due from depository institutions 70,769 

Interest and dividend income on securities 444,744 

Interest on federal funds sold 1,635 

Interest and dividends from bank subsidiaries 633,000 

Interest and dividends from nonbank subsidiaries 19,092 

Other interest income 1,687 

Total Interest Income 652,092 1,721,302 

Interest Expense 

Interest on deposits 130,163 

Interest on borrowed funds 3,226 

Other interest Expense 24,059 293 

Interest on subordinated notes and debentures and on 24,059 

mandatory convertible securities 

Total Interest Expense 24,059 157,741 

Net Interest Income 

Provision (negative) for loan and lease losses 127 80,954 

Net Interest Income After Provision 627,906 1,482,607 

Non-Interest Income 

Service charges and fees on deposits 61,690 

Trading revenue 24,009 

Fees and commissions from securities brokerage 314,702 

Venture capital revenue 116,201 

Other Income 102,593 407,145 

Gain / (loss) on sale of assets 56,683 -3,905 

Total non-interest income 159,276 919,842 

Non-Interest Expense 

Salaries and employee benefits 20,866 712,293 

Furniture, fixtures, and equipment 63,675 

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CONFIDENTIAL SECTION    

CAPITAL CALCULATIONS 

RESTRICTED – FR

Other Operating Expenses 44,499 372,620 

Total non-interest expense 65,365 1,148,588 

Income before income taxes 

Income tax (expense) benefit -34,334 -331,624 

Unrealized gains (losses) -10,558 -12,336 

Income (loss) attributable to noncontrolling (minority interests -35,901 

Equity in undistributed income of bank and non bank 197,075 

Net Income (Loss) 874,000 874,000 

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	 BOG-FRS - Public Release, April 2023