Form 8-K SVB FINANCIAL GROUP For: Oct 21

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October 21, 2021 4:14 PM EDT

Exhibit 99.1
svblogoa33.gif
3003 Tasman Drive, Santa Clara, CA 95054Contact:
www.svb.com    Meghan O'Leary
Investor Relations
For release at 1:00 P.M. (Pacific Time)    IR@SVB.com
October 21, 2021     (408) 654-6364
NASDAQ: SIVB     
SVB FINANCIAL GROUP ANNOUNCES 2021 THIRD QUARTER FINANCIAL RESULTS
Board of Directors declared a quarterly dividend on Series A, Series B and Series C Preferred Stock
SANTA CLARA, Calif. — October 21, 2021 — SVB Financial Group (NASDAQ: SIVB) today announced financial results for the third quarter ended September 30, 2021.
Consolidated net income available to common stockholders for the third quarter of 2021 was $365 million, or $6.24 per diluted common share, compared to $502 million, or $9.09 per diluted common share, for the second quarter of 2021 and $442 million, or $8.47 per diluted common share, for the third quarter of 2020. Consolidated net income available to common stockholders for the nine months ended September 30, 2021 was $1.4 billion, or $25.16 per diluted common share, compared to $803 million, or $15.46 per diluted common share, for the comparable 2020 period. Included in the consolidated net income available to common stockholders for the three and nine months ended September 30, 2021 are merger-related charges of $83 million and $102 million, or $1.02 and $1.35 per diluted common share, respectively, as well as a $46 million day one provision on non-purchased credit deteriorated loans and unfunded credit commitments acquired from Boston Private, or $0.57 and $0.61 per diluted common share, respectively.
"SVB's outstanding financial performance in the third quarter reflects the continued impact of exceptional client liquidity, expanding innovation markets, and effective execution across our business," said Greg Becker, President and CEO of SVB Financial Group. "We delivered peer-leading growth and profitability even after adjusting for one-time costs related to the Boston Private acquisition. As we look out into 2022, we expect continued strong growth against a backdrop of healthy markets, expanding business capabilities, and ongoing investments to further cement our position as the financial partner of choice for the global innovation economy."
Boston Private Financial Holdings, Inc. Acquisition
On July 1, 2021 we completed the acquisition of Boston Private Financial Holdings, Inc. ("Boston Private"). Financial results for the third quarter ended September 30, 2021 include the activities of Boston Private. The acquisition was completed for $1.2 billion in consideration, resulting in the issuance of 1,887,981 shares of SIVB common stock at $1.1 billion. Additionally, we recognized identifiable intangible assets of $104 million and goodwill of $201 million as a result of this acquisition. During the third quarter of 2021, we recognized a $46 million day one allowance for non-purchased credit deteriorated ("PCD") loans and unfunded credit commitments acquired from Boston Private and incurred $83 million of merger-related charges.
Our full year 2021 and preliminary full year 2022 outlook reflects the acquisition of Boston Private and is included in this release under the section "Financial Outlook and Preliminary 2022 Outlook."
Highlights of our third quarter 2021 results (compared to second quarter 2021, unless otherwise noted) included:
•Average loans of $59.3 billion, an increase of $9.5 billion (or 19.0 percent).
•Period-end loans of $61.5 billion, an increase of $10.7 billion (or 21.1 percent); includes $7.3 billion from Boston Private.
•Average fixed income investment securities of $93.8 billion, an increase of $21.5 billion (or 29.8 percent).
•Period-end fixed income investment securities of $105.3 billion, an increase of $21.5 billion (or 25.6 percent).


•Average total client funds (on-balance sheet deposits and off-balance sheet client investment funds) increased $46.6 billion (or 15.1 percent) to $354.7 billion, which includes an increase in average on-balance sheet deposits of $29.6 billion (or 22.2 percent).
•Period-end total client funds increased $42.4 billion (or 12.9 percent) to $371.4 billion, which includes an increase in period-end on-balance sheet deposits of 25.3 billion (or 17.4 percent); includes $8.7 billion from Boston Private.
•Period-end Private Bank Assets Under Management (“AUM”) of $19.6 billion; includes $18.0 billion from Boston Private.
•Issuance and sale of 2,227,000 shares of common stock on August 12, 2021 at an offering price of $564 per share, which resulted in net proceeds of $1.2 billion.
•Net interest income (fully taxable equivalent basis) of $859 million, an increase of $124 million (or 16.9 percent); includes $34 million of net interest income from Boston Private.
•Provision for credit losses was $21 million, compared to $35 million.
•Net loan charge-offs of $11 million, or 7 basis points of average total loans (annualized) compared to $12 million, or 10 basis points.
•Net gains on investment securities of $189 million compared to $305 million. Non-GAAP net gains on investment securities, net of noncontrolling interests, were $101 million, compared to $192 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”)
•Net gains on equity warrant assets of $147 million, compared to $122 million.
•Noninterest income of $672 million, a decrease of $89 million (or 11.7 percent). Non-GAAP core fee income increased $32 million (or 18.6 percent) to $204 million; includes $21 million from Boston Private (Wealth management and trust fees). Non-GAAP SVB Leerink revenue decreased $13 million (or 10.8 percent) to $107 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”)
•Noninterest expense of $879 million, an increase of $226 million (or 34.6 percent).
•GAAP operating efficiency ratio of 57.7 percent, compared to 43.9 percent. The decline in our operating efficiency is primarily due to higher compensation and benefits expense as well as merger-related charges and premises and equipment expense in the third quarter of 2021 related to the Boston Private acquisition.
Coronavirus Disease 2019 ("COVID-19") Pandemic Update
During the third quarter of 2021, the economic environment continued to generally improve with increased vaccine rates and business activity. Our overall credit trends have remained stable, and our business and clients have continued to demonstrate remarkable resilience and growth, despite some uncertainty in the trajectory of the broader economic recovery due to the spread of the Delta variant of COVID-19, among other factors. We continue to carefully monitor the broader economic environment, which could be impacted by the emergence of new variants and prolonged spread of COVID-19, delays in vaccination programs, the need for vaccine booster shots, vaccination rates and potential government lockdowns. We continue to support our clients, employees and communities.

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Third Quarter 2021 Summary
(Dollars in millions, except share data, employees and ratios)
Three months endedNine months ended
September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020September 30, 2021September 30, 2020
Income statement:
Diluted earnings per common share$6.24 $9.09 $10.03 $7.40 $8.47 $25.16 $15.46 
Net income available to common stockholders365 502 532 388 442 1,399 803 
Net interest income852 728 660 592 528 2,240 1,565 
Provision (reduction) for credit losses (1) (2)21 35 19 (38)(52)75 258 
Noninterest income 672 761 744 622 547 2,177 1,218 
Noninterest expense879 653 636 665 491 2,168 1,370 
Non-GAAP core fee income (3)204 172 159 156 146 535 447 
Non-GAAP core fee income plus SVB Leerink revenue (3)311 292 325 307 254 928 777 
Non-GAAP SVB Leerink revenue (3)107 120 166 151 108 393 330 
Fully taxable equivalent:
Net interest income (3) (4)$859 $735 $665 $597 $532 $2,259 $1,576 
Net interest margin1.95 %2.06 %2.29 %2.40 %2.53 %2.08 %2.79 %
Balance sheet:
Average total assets $182,690 $150,717 $124,815 $103,754 $88,348 $152,952 $79,761 
Average loans, amortized cost 59,291 49,812 46,281 41,525 37,319 51,843 35,836 
Average available-for-sale securities23,290 24,358 28,248 28,114 20,027 25,280 15,476 
Average held-to-maturity securities70,512 47,914 25,295 13,289 12,553 48,073 13,054 
Average noninterest-bearing demand deposits 109,638 91,530 73,233 61,663 51,544 91,600 46,341 
Average interest-bearing deposits53,754 42,230 37,375 30,774 26,136 44,513 22,825 
Average total deposits 163,392 133,760 110,608 92,437 77,680 136,113 69,166 
Average short-term borrowings99 39 12 10 16 50 533 
Average long-term debt1,936 1,604 1,162 843 843 1,571 561 
Period-end total assets 190,996 163,399 142,347 115,511 96,917 190,996 96,917 
Period-end loans, amortized cost61,487 50,754 47,675 45,181 38,414 61,487 38,414 
Period-end available-for-sale securities22,984 23,876 25,986 30,913 25,904 22,984 25,904 
Period-end held-to-maturity securities82,365 59,992 41,165 16,592 12,982 82,365 12,982 
Period-end non-marketable and other equity securities 2,485 1,943 1,858 1,802 1,548 2,485 1,548 
Period-end noninterest-bearing demand deposits 115,388 101,259 84,440 66,519 57,508 115,388 57,508 
Period-end interest-bearing deposits55,794 44,579 39,710 35,463 27,265 55,794 27,265 
Period-end total deposits 171,182 145,838 124,150 101,982 84,773 171,182 84,773 
Period-end short-term borrowings97 34 39 21 19 97 19 
Period-end long-term debt1,925 1,834 1,338 844 844 1,925 844 
Off-balance sheet:
Average client investment funds$191,286 $174,327 $151,579 $133,105 $123,564 $172,397 $112,104 
Period-end client investment funds200,234 183,167 163,882 141,053 126,781 200,234 126,781 
Period-end assets under management19,565 — — — — 19,565 — 
Total unfunded credit commitments40,785 36,385 33,987 31,982 30,330 40,785 30,330 
Earnings ratios:
Return on average assets (annualized) (5)0.79 %1.34 %1.73 %1.49 %1.99 %0.98 %1.34 %
Return on average SVBFG common stockholders’ equity (annualized) (6)12.47 21.69 27.04 20.23 24.19 19.41 15.56 
Asset quality ratios:
Allowance for credit losses for loans as a % of total loans0.65 %0.78 %0.82 %0.99 %1.34 %0.65 %1.34 %
Allowance for credit losses for performing loans as a % of total performing loans 0.59 0.71 0.74 0.87 1.17 0.59 1.17 
Gross loan charge-offs as a % of average total loans (annualized) (2)0.13 0.12 0.83 0.22 0.30 0.33 0.30 
Net loan charge-offs as a % of average total loans (annualized) (2)0.07 0.10 0.79 0.09 0.26 0.29 0.24 
Other ratios:
Operating efficiency ratio (7) 57.68 %43.85 %45.31 %54.79 %45.66 %49.08 %49.23 %
Total cost of deposits (annualized) (8)0.05 0.04 0.04 0.04 0.04 0.04 0.10 
SVBFG CET 1 risk-based capital ratio 12.74 11.93 12.18 11.04 12.31 12.74 12.31 
Bank CET 1 risk-based capital ratio14.66 13.66 12.93 10.70 10.75 14.66 10.75 
SVBFG tier 1 risk-based capital ratio15.38 14.95 14.01 11.89 13.25 15.38 13.25 
Bank tier 1 risk-based capital ratio14.66 13.66 12.93 10.70 10.75 14.66 10.75 
SVBFG total risk-based capital ratio 15.89 15.53 14.62 12.64 14.19 15.89 14.19 
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Bank total risk-based capital ratio15.19 14.26 13.56 11.49 11.75 15.19 11.75 
SVBFG tier 1 leverage ratio 7.80 7.77 8.01 7.45 8.26 7.80 8.26 
Bank tier 1 leverage ratio7.32 6.96 7.20 6.43 6.45 7.32 6.45 
Period-end loans, amortized cost, to deposits ratio 35.92 34.80 38.40 44.30 45.31 35.92 45.31 
Average loans, amortized cost, to average deposits ratio36.29 37.24 41.84 44.92 48.04 38.09 51.81 
Book value per common share (9)$208.53 $176.10 $163.25 $151.86 $143.91 $208.53 $143.91 
Tangible book value per common share (3) (10)200.01 172.44 159.50 147.92 140.37 200.01 140.37 
Other statistics:
Average full-time equivalent ("FTE") employees6,024 4,808 4,601 4,419 4,216 5,144 3,914 
Period-end full-time equivalent ("FTE") employees6,208 4,932 4,656 4,461 4,336 6,208 4,336 

(1)This metric for the three and nine months ended September 30, 2021 includes a post-combination provision of $46 million to record the allowance for credit losses for non-PCD loans and unfunded credit commitments acquired from Boston Private.
(2)This metric for the quarter ended March 31, 2021 and nine months ended September 30, 2021 includes the impact of an $80 million charge-off related to potentially fraudulent activity discussed in previous filings.
(3)To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP measures. A reconciliation of these non-GAAP measures to the most closely related GAAP measures is provided at the end of this release under the section “Use of Non-GAAP Financial Measures.”
(4)Interest income on non-taxable investments is presented on a fully taxable equivalent basis using the federal statutory income tax rate of 21.0 percent. The taxable equivalent adjustments were $7 million for the quarter ended September 30, 2021, $7 million for the quarter ended June 30, 2021, $6 million for the quarter ended March 31, 2021, $5 million for the quarter ended December 31, 2020 and $4 million for the quarter ended September 30, 2020. The taxable equivalent adjustments were $19 million and $11 million for the nine months ended September 30, 2021 and September 30, 2020, respectively.
(5)Ratio represents annualized consolidated net income available to common stockholders divided by average assets.
(6)Ratio represents annualized consolidated net income available to common stockholders divided by average SVB Financial Group ("SVBFG") common stockholders’ equity.
(7)Ratio is calculated by dividing noninterest expense by total net interest income plus noninterest income.
(8)Ratio represents annualized total cost of deposits and is calculated by dividing interest expense from deposits by average total deposits.
(9)Book value per common share is calculated by dividing total SVBFG common stockholders’ equity by total outstanding common shares.
(10)Tangible book value per common share is calculated by dividing tangible common equity by total outstanding common shares. Tangible common equity is a non-GAAP measure defined under the section “Use of Non-GAAP Financial Measures.”

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Investment Securities
Our investment securities portfolio is comprised of: (i) our available-for-sale ("AFS") and held-to-maturity ("HTM") securities portfolios, each consisting of fixed income investments which are managed to earn an appropriate portfolio yield over the long-term while maintaining sufficient liquidity and addressing our asset/liability management objectives; and (ii) our non-marketable and other equity securities portfolio, which represents investments managed as part of our funds management business as well as public equity securities held as a result of equity warrant assets exercised. Our total average fixed income investment securities portfolio increased $21.5 billion, or 29.8 percent, to $93.8 billion for the quarter ended September 30, 2021 compared to the second quarter of 2021. Our total period-end fixed income investment securities portfolio increased $21.5 billion, or 25.6 percent, to $105.3 billion at September 30, 2021. Our period-end non-marketable and other equity securities portfolio increased $543 million to $2.5 billion ($2.1 billion net of noncontrolling interests) at September 30, 2021, compared to the second quarter of 2021.

The weighted-average duration of our total fixed income securities portfolio was 4.5 years at September 30, 2021 and June 30, 2021. The total notional value of our pay-fixed, receive-floating interest rate swap fair value hedge contracts for AFS securities was $11.3 billion as of September 30, 2021. The weighted-average duration of our total fixed income securities portfolio, including the impact of our fair value swaps, was 4.0 years at September 30, 2021 and 3.9 years at June 30, 2021.

AFS Securities
Average AFS securities were $23.3 billion for the third quarter of 2021 compared to $24.4 billion for the second quarter of 2021. Period-end AFS securities were $23.0 billion at September 30, 2021 compared to $23.9 billion at June 30, 2021. The decreases in both average and period-end AFS securities were driven by a $3.1 billion re-designation of AFS securities to HTM securities as well as paydowns and maturities of $944 million, partially offset by purchases of $3.1 billion. The weighted-average duration of our AFS securities portfolio was 3.8 years at September 30, 2021 and 4.2 years at June 30, 2021. The weighted-average duration of AFS securities portfolio including the impact of our fair value swaps was 2.3 years at September 30, 2021 and 2.4 years at June 30, 2021.

HTM Securities
Average HTM securities were $70.5 billion for the third quarter of 2021, compared to $47.9 billion for the second quarter of 2021. Period-end HTM securities were $82.4 billion at September 30, 2021 compared to $60.0 billion at June 30, 2021. The increases in both average and period-end HTM securities were driven by purchases of $22.2 billion, with an additional $982 million of securities assumed with the Boston Private acquisition, the re-designation of $3.1 billion as mentioned above, partially offset by $3.9 billion in paydowns and maturities during the quarter. The weighted-average duration of our HTM securities portfolio was 4.7 years at September 30, 2021 and 4.6 years at June 30, 2021.

Loans
Portfolio Segments and Classes of Financing Receivables
Upon completing the acquisition of Boston Private, we evaluated the impact of the acquired loan portfolio on our existing portfolio segments and classes of financing receivables, which we historically called our “risk-based segments.” We have modified both levels of disaggregation to accommodate Boston Private loans. The following provides additional information regarding our revised eight portfolio segments and the additional disaggregation of our eleven classes of financing receivables:

•Global Fund Banking (segment and class) – The vast majority of our Global Fund Banking ("GFB") portfolio segment consists of capital call lines of credit, the repayment of which is dependent on the payment of capital calls by the underlying limited partner investors in funds managed by certain private equity and venture capital firms. This segmentation is unchanged from our historical disclosures.

•Investor Dependent (segment) – Our Investor Dependent loans are made primarily to technology and life science/healthcare companies. These borrowers typically have modest or negative cash flows and rarely have an established record of profitable operations. Repayment of these loans may be dependent upon receipt by borrowers of additional equity financing from venture capital firms or other investors, or in some cases, a successful sale to a third party or an IPO. This portfolio segment is equivalent to the Investor
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Dependent – Early-Stage and Investor Dependent – Growth Stage portfolio segments in our historical disclosures. This portfolio segment is further disaggregated into two classes of financing receivables:

◦Early Stage (class) – Our Early Stage class of financing receivable consists of pre-revenue, development-stage companies and companies that are in the early phases of commercialization, with revenues of up to $5 million. This class is unchanged from our historical disclosures.

◦Growth Stage (class) – Our Growth Stage (Mid/Later Stages) class of financing receivable consists of growth-stage enterprises. We consider companies with revenues between $5 million and $15 million, or pre-revenue clinical-stage biotechnology companies, to be Mid-Stage, and companies with revenues in excess of $15 million to be Later Stage. This class is made up of the former Mid-Stage and Later Stage risk-based segments in our historical disclosures.

•Cash Flow Dependent and Innovation Commercial and Industrial ("C&I") (segment) – These loans are made primarily to technology and life science/healthcare companies that are not Investor Dependent, i.e. repayment is not dependent on additional equity financing, a successful sale or an IPO. This portfolio segment is equivalent to the Cash Flow and Balance Sheet Dependent portfolio segments in our historical disclosures. This portfolio segment consists of two classes of financing receivables:

◦Cash Flow Dependent – Sponsor-Led Buyout ("SLBO") (class) – Sponsor-Led Buyout loans are typically used to assist a select group of private equity sponsors with the acquisition of businesses, are larger in size, and repayment is generally dependent upon the cash flows of the combined entities. Acquired companies are typically established, later-stage businesses of scale and characterized by reasonable levels of leverage with loan structures that include meaningful financial covenants. The sponsor’s equity contribution is often 50 percent or more of the acquisition price. This class is unchanged from our historical disclosures.

◦Innovation C&I (class) – This class of financing receivable contains other commercial and industrial loans in innovation sectors (i.e. the technology and life science/healthcare industries). These loans are dependent on either the borrower’s cash flows or balance sheet for repayment. Cash flow dependent loans require the borrower to maintain cash flow from operations that is sufficient to service all debt. Borrowers must demonstrate normalized cash flow in excess of all fixed charges associated with operating the business. Balance sheet dependent loans include asset-based loans and are structured to require constant current asset coverage (i.e. cash, cash equivalents, accounts receivable, and, to a much lesser extent, inventory) in an amount that exceeds the outstanding debt. The repayment of these arrangements is dependent on the financial condition, and payment ability, of third parties with whom our clients do business. This class is made up of the former Cash Flow Dependent – Other and Balance Sheet Dependent risk-based segments in our historical disclosures.

•Private Bank (segment and class) – Our Private Bank clients are primarily private equity/venture capital professionals and executives in the innovation companies they support as well as high net worth clients acquired from Boston Private. We offer a customized suite of private banking services, including mortgages, home equity lines of credit, restricted and private stock loans, personal capital call lines of credit, lines of credit against liquid assets and other secured and unsecured lending products. In addition, we provide owner occupied commercial mortgages to Private Bank clients and real estate secured loans to eligible employees through our Employee Home Ownership Program. This class is unchanged from our historical disclosures, other than adding loans such as residential, home equity, and consumer loans acquired from Boston Private.

•Commercial Real Estate (CRE) (segment and class) – Commercial real estate loans are generally acquisition financing for commercial properties such as office buildings, retail properties, apartment buildings, and industrial/warehouse space. This segmentation is new as a result of the Boston Private acquisition.

•Other C&I (segment and class) – These are commercial and industrial loans, including working capital and revolving lines of credit, as well as term loans for equipment and fixed assets. These loans are primarily to clients that are not in the technology and life sciences/healthcare industries. Additionally, this portfolio
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segment contains commercial tax-exempt loans to not-for-profit private schools, colleges, public charter schools and other not-for-profit organizations. This segmentation is new as a result of the Boston Private acquisition.

•Premium Wine and Other (segment) – This portfolio segment consists of two classes of financing receivables:

◦Premium Wine (class) – Our Premium Wine clients primarily consist of wine producers, vineyards and wine industry or hospitality businesses across the Western United States. A large portion of these loans are secured by real estate collateral such as vineyards and wineries. This class is unchanged from our historical disclosures.

◦Other (class) – Our Other class of financing receivable primarily consists of construction and land loans for financing new developments as well as financing for improvements to existing buildings. These also include our community development loans made as part of our responsibilities under the Community Reinvestment Act. This class is unchanged from our historical disclosures, other than adding additional construction and land loans acquired from Boston Private.

•Paycheck Protection Program ("PPP") (segment and class) – These are the combined loans issued through the PPP by SVB and Boston Private. These loans represent clients across all portfolio segments and are guaranteed by the U.S Small Business Administration. This segmentation is unchanged from our historical disclosures, other than adding PPP loans acquired from Boston Private.

The following table provides a summary of our loans at amortized cost basis broken out by class of financing receivable. Prior period amounts have been reclassified to conform to current period presentation.

(Dollars in millions)September 30, 2021June 30, 2021September 30, 2020
Global fund banking$34,120 $30,630 $19,585 
Investor dependent
Early stage1,550 1,565 1,471 
Growth stage3,827 3,763 3,641 
Total investor dependent5,377 5,328 5,112 
Cash flow dependent - SLBO1,895 1,917 2,062 
Innovation C&I5,916 5,730 4,298 
Private bank8,370 5,297 4,425 
CRE2,753 — — 
Premium wine980 1,002 1,082 
Other C&I 1,259 — — 
Other252 7 48 
PPP565 843 1,802 
Total loans$61,487 $50,754 $38,414 

Average loans increased by $9.5 billion to $59.3 billion for the third quarter of 2021, compared to $49.8 billion for the second quarter of 2021. Period-end loans increased $10.7 billion to $61.5 billion at September 30, 2021, compared to $50.8 billion at June 30, 2021. Average and period-end loan growth came primarily from the addition of Boston Private's loan portfolio, as well as continued growth in our Global Fund Banking segment. This growth was partially offset by a decrease in our PPP loans driven by the continued forgiveness of these loans during the third quarter.

Net Interest Income and Margin
Net interest income, on a fully taxable equivalent basis, was $859 million for the third quarter of 2021, compared to $735 million for the second quarter of 2021. The $124 million increase from the second quarter of 2021 to the third quarter of 2021 was attributable primarily to the following:
•An increase of $85 million in interest income from our fixed income investment securities reflective primarily of a $21.5 billion increase in average fixed income securities.
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•An increase in interest income from loans of $47 million to $519 million for the third quarter of 2021 due primarily to $56 million of interest income on the loans acquired from Boston Private, partially offset by $20 million of premium amortization related to the fair market value adjustment made on the acquired loans upon completion of the Boston Private acquisition. Interest income further increased reflective of $2.3 billion in average loan growth, excluding the impact of Boston Private, as well as an increase in day count, partially offset by loan yield compression and lower fee income resulting from a decrease in prepayments from lower PPP forgiveness and lower early payoffs in the third quarter of 2021 as compared to the second quarter of 2021.
◦Overall loan yields decreased 33 basis points to 3.47 percent, primarily due to the addition of lower yielding Boston Private loans as well as premium amortization on the Boston Private loans acquired as mentioned above, a decrease in loan fee yields reflective of a decrease in PPP forgiveness and early payoffs in the third quarter of 2021 as compared to the second quarter of 2021 as well as continued growth in our lower yielding Global Fund Banking loan portfolio and loan yield compression.
Net interest margin, on a fully taxable equivalent basis, was 1.95 percent for the third quarter of 2021, compared to 2.06 percent for the second quarter of 2021. The 11 basis point decrease in our net interest margin was due primarily to the overall shift in balance sheet growth into lower yielding fixed income investment securities reflective of the significant deposit growth as well as lower yields on loans from the addition of lower yielding Boston Private loans and the fair market value adjustment premium amortization as discussed above.

For the third quarter of 2021, approximately 90 percent, or $53.4 billion, of our average loans were variable-rate loans that adjust at prescribed measurement dates. Of our variable-rate loans, approximately 64 percent are tied to prime-lending rates and 36 percent are tied to LIBOR. As a result of the discontinuation of LIBOR at the end of 2021, we are preparing for the transition to an alternate reference rate and expect the percent of LIBOR loans to decrease over time. We intend to offer the Secured Overnight Financing Rate ("SOFR") as the alternative reference rate to U.S. dollar LIBOR once it is discontinued.
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Credit Quality
The following table provides a summary of our allowance for credit losses for loans, unfunded credit commitments and HTM securities:
 Three months endedNine months ended
(Dollars in millions, except ratios)September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Allowance for credit losses for loans, beginning balance$396 $392 $590 $448 $305 
Day one impact of adopting CECL— — — — 25 
Initial allowance on PCD loans22 — — 22 — 
(Reduction) provision for loans (1) (2)(9)16 (54)41 247 
Gross loan charge-offs (2)(19)(15)(28)(129)(80)
Loan recoveries8 3 4 16 16 
Foreign currency translation adjustments
— — 1 — — 
Allowance for credit losses for loans, ending balance
$398 $396 $513 $398 $513 
Allowance for credit losses for unfunded credit commitments, beginning balance
120 105 99 121 67 
Day one impact of adopting CECL— — — — 23 
Provision for unfunded credit commitments (1)29 15 2 28 11 
Allowance for credit losses for unfunded credit commitments, ending balance (3)$149 $120 $101 $149 $101 
Allowance for credit losses for HTM securities, beginning balance5 1 — — — 
Provision for HTM securities1 4 — 6 — 
Allowance for credit losses for HTM securities, ending balance (4)$6 $5 $— $6 $— 
Ratios and other information:
(Reduction) provision for loans as a percentage of period-end total loans (annualized)(0.06)%0.13 %(0.56)%0.09 %0.86 %
Gross loan charge-offs as a percentage of average total loans (annualized)0.13 0.12 0.30 0.33 0.30 
Net loan charge-offs as a percentage of average total loans (annualized)0.07 0.10 0.26 0.29 0.24 
Allowance for credit losses for loans as a percentage of period-end total loans0.65 0.78 1.34 0.65 1.34 
Provision (reduction) for credit losses (1)$21 $35 $(52)$75 $258 
Period-end total loans61,487 50,754 38,414 61,487 38,414 
Average total loans59,291 49,812 37,319 51,843 35,836 
Allowance for credit losses for nonaccrual loans33 38 64 33 64 
Nonaccrual loans114 79 106 114 106 
(1)The provision for credit losses for the three and nine months ended September 30, 2021 includes $46 million recognized as a result of the Boston Private acquisition, which consists of a $44 million provision for loan losses related to non-PCD loans and a $2 million provision for unfunded commitments.
(2)Metrics for the nine months ended September 30, 2021 include the impact of an $80 million charge-off related to potentially fraudulent activity discussed in previous filings.
(3)The “allowance for credit losses for unfunded credit commitments” is included as a component of “other liabilities.”
(4)The "allowance for credit losses for HTM securities" is included as a component of HTM securities and presented net in our consolidated financial statements.

Our allowance for credit losses for loans increased $2 million to $398 million at September 30, 2021, compared to $396 million at June 30, 2021. The $2 million increase was driven primarily by the addition of $66 million of reserves for the new Boston Private portfolio (made up of an initial allowance of $22 million on PCD loans and $44 million on non-PCD loans) and an increase of $10 million in our performing reserves for loan growth, which were largely offset by decreases of $69 million due to an enhancement of our reserving model and a $5 million decrease in reserves for nonaccrual loans. The enhancements of our reserving model consisted primarily of faster, more granular prepayment assumptions and the addition of two years of incremental data of strong performance, which resulted in the $69 million release. As a percentage of total loans, our allowance for credit losses for loans decreased 13 basis points to 0.65 percent at September 30, 2021, compared to 0.78 percent at June 30, 2021. The 13 basis point decrease, due primarily to the factors described above, consists of a 12 basis point decrease in our performing loans reserve as a percentage of total loans and a one basis point decrease in our reserves for nonaccrual individually assessed loans as a percentage of total loans.
The provision for credit losses was $21 million for the third quarter of 2021, consisting of the following:
•A reduction in provision for credit loss for loans of $9 million, driven primarily by the $69 million reduction in provision due to model enhancements described above and an $8 million reduction for recoveries. These
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reductions were largely offset by a $44 million provision for Boston Private loans, a $10 million provision for loan growth, and an increase of $15 million for charge-offs not previously reserved for.
•A provision for credit loss for unfunded credit commitments of $29 million, driven primarily by a $17 million increase attributable to commitment growth and changes in portfolio composition and a $10 million increase primarily from an increase in the expected future commitments for milestone tranches of Investor Dependent loans, which are tied to company performance or additional funding rounds, resulting in a longer weighted average life of these higher risk segments. Additionally, we recorded a provision of $2 million related to Boston Private unfunded commitments.
•A provision for credit losses for HTM securities of $1 million, driven primarily by the continued growth of our corporate bond portfolio in the third quarter of 2021.

Gross loan charge-offs were $19 million for the third quarter of 2021, of which $15 million was not specifically reserved for at June 30, 2021. Gross loan charge-offs were partly driven by an $8 million charge-off from one Investor Dependent - Early Stage client. The remaining $7 million gross loan charge-offs were driven primarily by our Investor Dependent and Cash Flow Dependent loan portfolios.
Nonaccrual loans were $114 million at September 30, 2021, compared to $79 million at June 30, 2021. Our nonaccrual loan balance increased $35 million driven primarily by $53 million new nonaccrual loans, which was partially offset by $12 million in repayments and $6 million in charge-offs in our legacy portfolio. Of the $53 million new nonaccrual loans, $31 million was from Boston Private, and the remaining $22 million was from our legacy portfolio, driven primarily by $17 million from one Premium Wine client. Repayments were driven primarily by clients in our Private Bank and Investor Dependent - Early Stage portfolios. Nonperforming loans, which includes nonaccrual loans of $114 million as well as $3 million of loans past due 90 days or more still accruing interest, as a percentage of total loans increased 3 basis points to 0.19 percent for the third quarter of 2021, compared to 0.16 percent for the second quarter of 2021
The allowance for credit losses for nonaccrual loans decreased $5 million to $33 million in the third quarter of 2021. The decrease was due primarily to $7 million in repayments and $8 million in charge-offs, partially offset by $10 million in additional reserves for nonaccrual loans, of which $2 million is related to nonaccrual loans from Boston Private. The $8 million of additional reserves from our legacy portfolio was driven primarily by our Technology and Life Science and Healthcare clients, including $2 million from one Investor Dependent - Early Stage client. Charge-offs and repayments were driven primarily by clients in our Investor Dependent portfolios.
Client Funds
Our Total Client Funds consist of the sum of both our on-balance sheet deposits and off-balance sheet client investment funds. The following tables provide a summary of our average and period-end on-balance sheet deposits and off-balance sheet client investment funds:

Average On-Balance Sheet Deposits and Off-Balance Sheet Client Investment Funds (1)(2)
Average balances for the
 Three months endedNine months ended
(Dollars in millions)September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Interest-bearing deposits$53,754 $42,230 $26,136 $44,513 $22,825 
Noninterest bearing demand deposits109,638 91,530 51,544 91,600 46,341 
Total average on-balance sheet deposits$163,392 $133,760 $77,680 $136,113 $69,166 
Sweep money market funds$97,590 $82,573 $54,495 $82,434 $48,367 
Managed client investment funds (3)79,400 77,733 59,338 76,537 53,928 
Repurchase agreements14,296 14,021 9,731 13,426 9,809 
Total average off-balance sheet client investment funds$191,286 $174,327 $123,564 $172,397 $112,104 

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Period-end On-Balance Sheet Deposits and Off-Balance Sheet Client Investment Funds (1)(2)
 Period-end balances at
(Dollars in millions)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
Interest-bearing deposits$55,794 $44,579 $39,710 $35,463 $27,265 
Noninterest-bearing demand deposits115,388 101,259 84,440 66,519 57,508 
Total period-end on-balance sheet deposits$171,182 $145,838 $124,150 $101,982 $84,773 
Sweep money market funds$105,163 $90,402 $75,328 $59,844 $56,395 
Managed client investment funds (3)81,503 78,698 75,970 70,671 60,773 
Repurchase agreements13,568 14,067 12,584 10,538 9,613 
Total period-end off-balance sheet client investment funds$200,234 $183,167 $163,882 $141,053 $126,781 

(1)Off-Balance sheet client investment funds are maintained at third-party financial institutions.
(2)Off-Balance sheet client investment funds exclude Private Bank AUM beginning in the third quarter of 2021.
(3)These funds represent investments in third-party money market mutual funds and fixed income securities managed by SVB Asset Management.

The increases in our average and period-end Total Client Funds from the second quarter of 2021 to the third quarter of 2021 reflect growth in both on-balance sheet deposits and off-balance sheet client investments. We saw Total Client Funds growth across all portfolios with the primary contributor coming from our Technology portfolio, driven by continued strong private fundraising. The Boston Private acquisition contributed $8.7 billion of on-balance sheet deposit growth.
Private Bank Assets Under Management ("AUM")
AUM consists of the Private Bank's client investment account balances and generates fee income included in our new financial statement line item "Wealth management and trust fees" included in our consolidated statements of income. The following table summarizes the activity relating to AUM for the three months ended September 30, 2021:
 Three months ended
(Dollars in millions)September 30, 2021
Beginning balance (1)$1,667 
Assets acquired (2)17,980 
Net flows(31)
Market returns(51)
Ending balance$19,565 
(1)Represents Private Bank assets under management previously reported in off-balance sheet managed client investment funds above.
(2)Represents AUM acquired from the acquisition of Boston Private on July 1, 2021.
Noninterest Income
Noninterest income was $672 million for the third quarter of 2021, compared to $761 million for the second quarter of 2021. The decrease in noninterest income was driven by lower net gains on investment securities partially offset by gains on equity warrant assets and wealth management and trust fees.
Items impacting noninterest income for the third quarter of 2021 were as follows:

Net gains on investment securities
The following tables provide a summary of non-GAAP net gains on investment securities, net of noncontrolling interests, for the three months ended September 30, 2021 and June 30, 2021, respectively:
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 Three months ended September 30, 2021
(Dollars in millions)Managed
Funds of Funds		Managed Direct Venture FundsManaged Credit FundsPublic Equity SecuritiesStrategic
and Other
Investments		SVB LeerinkTotal
GAAP gains (losses) on investment securities, net$109 $5 $7 $(39)$51 $56 $189 
Less: income attributable to noncontrolling interests, including carried interest allocation53 — 1 — — 34 88 
Non-GAAP gains (losses) on investment securities, net of noncontrolling interests (1)$56 $5 $6 $(39)$51 $22 $101 
(1)Three months ended September 30, 2021 includes gains and losses from debt funds and AFS security sales of less than $1 million.

 Three months ended June 30, 2021
(Dollars in millions)Managed
Funds of Funds		Managed Direct Venture FundsManaged Credit FundsPublic Equity SecuritiesDebt 
Funds		Strategic
and Other
Investments		SVB LeerinkTotal
GAAP gains on investment securities, net$197 $19 $6 $18 $1 $20 $44 $305 
Less: income attributable to noncontrolling interests, including carried interest allocation87 8 1 — — — 17 113 
Non-GAAP gains on investment securities, net of noncontrolling interests$110 $11 $5 $18 $1 $20 $27 $192 

Non-GAAP net gains on investment securities, net of noncontrolling interests, of $101 million for the third quarter of 2021 was driven primarily by gains in our managed fund of funds portfolio, strategic and other investments and SVB Leerink funds partially offset by valuation decreases in our public equity securities portfolio. The managed fund of funds portfolio and strategic and other investments gains, and SVB Leerink funds were driven by unrealized valuation increases of private and public positions.
Net gains on equity warrant assets
The following table provides a summary of our net gains on equity warrant assets:
 Three months endedNine months ended
(Dollars in millions)September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Equity warrant assets:
Gains on exercises, net
$91 $78 $24 $381 $59 
Terminations
(1)(1)— (2)(1)
Changes in fair value, net
57 45 30 112 36 
Total net gains on equity warrant assets$147 $122 $54 $491 $94 
Net gains on equity warrant assets for the third quarter of 2021 included $91 million of gains on exercises driven primarily by IPO activity during the quarter. The $57 million in net valuation increases were driven by our private company portfolio reflective primarily of pricing updates and pending exit activity.
At September 30, 2021, we held warrants in 2,749 companies with a total fair value of $274 million. Warrants in 50 companies each had fair values greater than $1 million and collectively represented $139 million, or 50.8 percent, of the fair value of the total warrant portfolio at September 30, 2021. 
The gains (or losses) from investment securities from our non-marketable and other equity securities portfolio as well as our equity warrant assets resulting from changes in valuations (fair values) are currently unrealized, and the extent to which such gains (or losses) 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.  
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Non-GAAP core fee income plus non-GAAP SVB Leerink revenue
The following table provides a summary of our non-GAAP core fee income, non-GAAP SVB Leerink revenue and non-GAAP core fee income plus SVB Leerink revenue:
 Three months endedNine months ended
(Dollars in millions)September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Non-GAAP core fee income:
Client investment fees$20 $15 $32 $55 $107 
Wealth management and trust fees22 — — 22 — 
Foreign exchange fees65 67 44 189 128 
Credit card fees34 31 23 93 72 
Deposit service charges29 28 22 82 67 
Lending related fees21 18 13 55 38 
Letters of credit and standby letters of credit fees13 13 12 39 35 
Total non-GAAP core fee income$204 $172 $146 $535 $447 
Investment banking revenue90 103 92 335 281 
Commissions17 17 16 58 49 
Total non-GAAP SVB Leerink revenue$107 $120 $108 $393 $330 
Total non-GAAP core fee income plus SVB Leerink revenue$311 $292 $254 $928 $777 

Non-GAAP core fee income increased from the second quarter of 2021 to the third quarter of 2021 primarily reflective of increases in wealth management and trust fees, client investment fees, and credit card fees. Wealth management and trust fees was a new core fee income line item for the third quarter of 2021 related to the acquisition of Boston Private. The $5 million increase in client investment fees was primarily driven by increased margins due to the full-quarter impact of the Federal Reserve's overnight repurchase rate increase in June 2021. Credit card fees increased $3 million primarily due to new client growth, relationship expansion and higher utilization.
Non-GAAP SVB Leerink revenue decreased $13 million from the second quarter of 2021 to the third quarter of 2021 due to a decrease in deals led by SVB Leerink.
Reconciliations of our non-GAAP net gains on investment securities, non-GAAP core fee income, non-GAAP SVB Leerink revenue and non-GAAP core fee income plus SVB Leerink revenue are provided under the section “Use of Non-GAAP Financial Measures.”
Noninterest Expense
Noninterest expense was $879 million for the third quarter of 2021, compared to $653 million for the second quarter of 2021. The increase of $226 million from the prior quarter was attributable primarily to increases in our compensation and benefits expense, merger-related charges and premises and equipment expense in the third quarter of 2021.
Merger-related charges increased primarily due to impairment charges recorded for the restructuring of Boston Private's leased facilities relating to actions subsequent to the acquisition, higher consulting fees related to the closing and integration of Boston Private and increased retention expenses.
Premises and equipment expense was higher due to premises and equipment expenses associated with the Boston Private acquisition as well as higher depreciation expense related to investments in projects, systems and technology to support our revenue growth and related initiatives.
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The following table provides a summary of our compensation and benefits expense:
 Three months endedNine months ended
(Dollars in millions, except employees)September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Compensation and benefits:
Salaries and wages
$195 $146 $135 $504 $376 
Incentive compensation plans
229 162 104 541 291 
Other employee incentives and benefits (1)
124 117 88 373 236 
Total compensation and benefits$548 $425 $327 $1,418 $903 
Period-end full-time equivalent employees6,2084,9324,3366,2084,336
Average full-time equivalent employees6,0244,8084,2165,1443,914

(1)Other employee incentives and benefits expense includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), ESOP, warrant incentive and retention plans, agency fees and other employee-related expenses.
The $123 million increase in total compensation and benefits expense consists primarily of the following:
•An increase of $49 million in salaries and wages expense due to additional FTEs related to the acquisition of Boston Private, as well as at SVB Leerink and other segments of SVB,
•An increase of $67 million in incentive compensation plans expense attributable primarily to additional average FTEs related to the acquisition of Boston Private as well as SVB Leerink and an increase in our incentive compensation plan accrual as a result of stronger than expected performance during the year and our expected full-year 2021 financial results, and
•An increase of $7 million in other employee incentives and benefits due primarily to higher share-based payments related to the acquisition of Boston Private and a full quarter of amortization related to annual share-based grants that were issued during the second quarter, partially offset by a decrease in warrant incentive plans expense reflective of lower quarter over quarter warrant gains increases from the second to third quarter of 2021 compared to warrant gains increases from the first to second quarter of 2021.
Income Tax Expense
Our effective tax rate was 27.6 percent for the third quarter of 2021, compared to 25.1 percent for the second quarter of 2021. Our effective tax rate is calculated by dividing income tax expense by the sum of income before income tax expense and net income attributable to noncontrolling interests. The increase in our effective tax rate is due to the reduction of the excess tax benefit from share-based compensation, which is reflective of lower exercises of our stock options and restricted stock unit releases, compared to the second quarter of 2021 when the Company's annual vesting occurs.
Noncontrolling Interests
Included in net income is income and expense related to noncontrolling interests. The relevant amounts allocated to investors in our consolidated subsidiaries, other than us, are reflected under “Net Income Attributable to Noncontrolling Interests” in our statements of income. The following table provides a summary of net income attributable to noncontrolling interests: 
 Three months endedNine months ended
(Dollars in millions)September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Noninterest income (1)$(64)$(36)$(9)$(116)$(12)
Carried interest allocation (2)(24)(77)(19)(110)(28)
Net income attributable to noncontrolling interests$(88)$(113)$(28)$(226)$(40)
(1)Represents noncontrolling interests’ share in net interest income, noninterest income and noninterest expense.
(2)Represents the preferred allocation of income (or change in income) earned by us as the general partner of certain consolidated funds.
Net income attributable to noncontrolling interests of $88 million for the third quarter of 2021 was driven primarily by net gains on investment securities (including carried interest allocation) from unrealized valuation increases of our managed funds of funds portfolio and our SVB Leerink funds.
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SVBFG Stockholders’ Equity
Total SVBFG stockholders’ equity increased by $2.6 billion to $14.3 billion at September 30, 2021, compared to $11.7 billion at June 30, 2021, primarily due to net proceeds of $1.2 billion of capital raised related to our common stock equity offering, a $1.1 billion common stock equity issuance related to the acquisition of Boston Private and net income of $365 million during the third quarter of 2021.
Preferred Stock
Series A Preferred Stock
On October 21, 2021, the Company's Board of Directors declared a quarterly cash dividend of $13.125 per share (representing $0.328125 per depositary share) on the Series A Preferred Stock. The dividend is payable on November 15, 2021 to holders of record at the close of business on November 1, 2021.
Series B Preferred Stock
On October 21, 2021, the Company's Board of Directors declared a quarterly cash dividend of $1,025 per share (representing $10.25 per depositary share) on the Series B Preferred Stock. The dividend is payable on November 15, 2021 to holders of record at the close of business on November 1, 2021.
Series C Preferred Stock
On October 21, 2021, the Company's Board of Directors declared a quarterly cash dividend of $1,000 per share (representing $10 per depositary share) on the Series C Preferred Stock. The dividend is payable on November 15, 2021 to holders of record at the close of business on November 1, 2021.

SVB Financial and Bank Capital Ratios(1)
September 30, 2021June 30, 2021September 30, 2020
SVB Financial:
CET 1 risk-based capital ratio12.74 %11.93 %12.31 %
Tier 1 risk-based capital ratio15.38 14.95 13.25 
Total risk-based capital ratio15.89 15.53 14.19 
Tier 1 leverage ratio7.80 7.77 8.26 
Tangible common equity to tangible assets ratio (2)6.17 5.76 7.52 
Tangible common equity to risk-weighted assets ratio (2)12.72 12.02 13.28 
Silicon Valley Bank:
CET 1 risk-based capital ratio14.66 %13.66 %10.75 %
Tier 1 risk-based capital ratio14.66 13.66 10.75 
Total risk-based capital ratio15.19 14.26 11.75 
Tier 1 leverage ratio 7.32 6.96 6.45 
Tangible common equity to tangible assets ratio (2)7.12 6.47 6.42 
Tangible common equity to risk-weighted assets ratio (2)14.99 13.76 11.79 
(1)Regulatory capital ratios as of September 30, 2021 are preliminary.
(2)These are non-GAAP measures. A reconciliation of non-GAAP measures to GAAP is provided at the end of this release under the section “Use of Non-GAAP Financial Measures.”

September 30, 2021 Preliminary Results
Our risk-based capital and leverage ratios increased for both SVB Financial and Silicon Valley Bank as of September 30, 2021, compared to June 30, 2021. The increases were due to growth in our capital outpacing growth in our risk-weighted and average assets. Capital for SVB Financial increased due to the issuance of a total of $2.3 billion of common stock during the quarter as well as net income. The increase in capital for Silicon Valley Bank was driven by a $1.5 billion downstream capital infusion from our bank holding company during the third quarter of 2021, the $1.2 billion consideration for the acquisition of Boston Private and net income. The increase in our risk-weighted and average assets were driven by increases in our investment securities and loan portfolios.
All of our reported capital ratios remain above the levels considered to be “well capitalized” under applicable banking regulations.
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Financial Outlook and Preliminary 2022 Outlook
Our outlook for full year ending December 31, 2021 and our preliminary outlook for the year ending December 31, 2022, are provided below on a GAAP basis, unless otherwise noted. We have provided our current outlook for the expected full year results of our significant forecasted activities based on management's assumptions and current expectations. Except for the items noted below, we do not provide an outlook for certain items (such as gains or losses from warrants and investment securities) where the timing or financial impact are particularly uncertain and/or subject to market or other conditions beyond our control (such as the level of IPO, SPAC, M&A or general financing activity), or for potential unusual or non-recurring items. The outlooks and the underlying assumptions presented are, by their nature, forward-looking statements and are subject to substantial risks and uncertainties, including risks and uncertainties related to the COVID-19 pandemic and related government actions, which are discussed below under the section “Forward-Looking Statements.” Actual results may differ. 2022 outlook is preliminary and subject to change. (For additional information about our financial outlook, please refer to Q3 2021 Earnings Slides. See "Additional Information" below.)

With the close of the Boston Private acquisition on July 1, 2021, Boston Private's performance is reflected in our full year 2021 and preliminary 2022 outlook.

Please note that the outlooks below do not include and/or take into account changes related to: (i) interest rates, (ii) material deterioration in the overall economic environment and (iii) corporate tax or other regulatory and policy changes under the current U.S. government administration, and includes management's updates to our 2021 outlook metrics we previously disclosed on July 22, 2021):

Prior full year 2021 outlook compared to 2020 results (as of July 22, 2021)Current full year 2021 outlook compared to 2020 results (as of October 21, 2021)Preliminary full year 2022 outlook compared to 2021 expected results (as of October 21, 2021)
Average loan balancesMid-forties growthMid-forties growthMid-twenties growth
Average deposit balancesLow nineties growthMid-nineties growthLow forties growth
Net interest income (1)Mid-forties growthMid-forties growthMid-thirties growth
Net interest margin (1)2.00% — 2.10%2.00% — 2.10%1.90% — 2.00%
Net loan charge-offs (2)0.20% — 0.40% of average loans0.20% — 0.40% of average loans0.20% — 0.40% of average loans
Core fee income (client investment fees, wealth management and trust fees, foreign exchange fees, credit card fees, deposit service charges, lending related fees and letters of credit fees) (3)High teens growthLow twenties growthMid-twenties growth
SVB Leerink revenue (3)$480 million — $510 million$525 million — $550 million$625 million — $675 million
Noninterest expense excluding merger-related charges (4) (5)Mid-thirties growthLow forties growthLow twenties growth
Effective tax rate (6)25% — 27%25% — 27%25% — 27%
(1)Our outlook for net interest income and net interest margin is based primarily on management's current forecast of average deposit and loan balances and deployment of surplus cash into investment securities. Such forecasts are subject to change, and actual results may differ, based on market conditions, the COVID-19 pandemic and its effects on the economic and business environments in which we operate, actual prepayment rates and other factors described under the section "Forward-Looking Statements" below.
(2)Our outlook for loan charge-offs includes the impact of an $80 million charge-off related to potentially fraudulent activity discussed in previous filings.
(3)Core fee income and SVB Leerink revenue are each non-GAAP measures, which collectively represent noninterest income, but exclude certain line items where performance is typically subject to market or other conditions beyond our control. As we are unable to quantify such line items that would be required to be included in the comparable GAAP financial measure for the future period presented without unreasonable efforts, no reconciliation for the outlook of non-GAAP core fee income and non-GAAP SVB Leerink revenue to GAAP noninterest income for fiscal year ending 2021 is included in this release, as we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors. See "Use of Non-GAAP Financial Measures" at the end of this release for further information regarding the calculation and limitations of this measure. Core fee income does not include SVB Leerink revenue. SVB Leerink revenue represents investment banking revenue and commissions.
(4)Our outlook for noninterest expense is partly based on management's current forecast of performance-based incentive compensation expenses. Such forecasts are subject to change, and actual results may differ, based on our performance relative to our internal performance targets.
(5)Pre-tax merger-related charges, associated with the Boston Private acquisition, were $102 million for the nine months ended September 30, 2021 and are estimated to be approximately $25 million in the fourth quarter of 2021. We expect a total of approximately $40 million of pre-tax merger-related charges, spread relatively evenly, to be incurred during the full year 2022.
(6)Our outlook for our effective tax rate is based on management's current assumptions with respect to, among other things, SVB Financial Group's earnings, state income tax levels, tax deductions and estimated performance-based compensation activity and does not include assumptions for potential future tax rate changes.

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Forward-Looking Statements
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements are statements that are not historical facts, such as forecasts of our future financial results and condition, expectations for our operations and business, and our underlying assumptions of such forecasts and expectations. In addition, forward-looking statements generally can be identified by the use of such words as “becoming,” “may,” “will,” “should,” “could,” “would,” “predict,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “assume,” “seek,” “expect,” “plan,” “intend,” the negative of such words or comparable terminology. In this release, including our CEO's statement and in the section “Financial Outlook and Preliminary 2022 Outlook,” we make forward-looking statements discussing management’s expectations for 2021 and 2022 about, among other things, economic conditions; the continuing and potential effects of the COVID-19 pandemic; opportunities in the market; the outlook on our clients' performance; our financial, credit, and business performance, including loan growth, loan mix and loan yields; deposit growth; expense levels; our expected effective tax rate; accounting impacts; financial results (and the components of such results) and the continuing integration of Boston Private.
Although we believe that the expectations reflected in our forward-looking statements are reasonable, we have based these expectations on our current beliefs as well as our assumptions, and such expectations may not prove to be correct. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside our control. Our actual results of operations and financial performance could differ significantly from those expressed in or implied by our management’s forward-looking statements. Important factors that could cause our actual results and financial condition to differ from the expectations stated in the forward-looking statements include, among others:
•market and economic conditions (including the general condition of the capital and equity markets, and IPO, secondary offering, SPAC fundraising, M&A and financing activity levels) and the associated impact on us (including effects on client demand for our commercial and investment banking and other financial services, as well as on the valuations of our investments);
•the COVID-19 pandemic and its effects on the economic and business environments in which we operate, and its effects on our operations, including, as a result of, prolonged work-from-home arrangements;
•the impact of changes from the Biden-Harris administration and the U.S. Congress on the economic environment, capital markets and regulatory landscape, including monetary, tax and other trade policies;
•changes in the volume and credit quality of our loans as well as volatility of our levels of nonperforming assets and charge-offs;
•the impact of changes in interest rates or market levels or factors affecting or affected by them, especially on our loan and investment portfolios;
•the adequacy of our allowance for credit losses and the need to make provisions for credit losses for any period;
•the sufficiency of our capital and liquidity positions;
•changes in the levels of our loans, deposits and client investment fund balances;
•changes in the performance or equity valuations of funds or companies in which we have invested or hold derivative instruments or equity warrant assets;
•variations from our expectations as to factors impacting our cost structure;
•changes in our assessment of the creditworthiness or liquidity of our clients or unanticipated effects of credit concentration risks which create or exacerbate deterioration of such creditworthiness or liquidity;
•variations from our expectations as to factors impacting the timing and level of employee share-based transactions;
•the occurrence of fraudulent activity, including breaches of our information security or cyber security-related incidents;
•business disruptions and interruptions due to natural disasters and other external events;
•the impact on our reputation and business from our interactions with business partners, counterparties, service providers and other third parties;
•the expansion of our business internationally, and the impact of international market and economic events on us;
•the effectiveness of our risk management framework and quantitative models;
•our ability to maintain or increase our market share, including through successfully implementing our business strategy and undertaking new business initiatives, including through the continuing integration of Boston Private and the expansion of SVB Leerink into the technology investment banking sector;
17

•greater than expected costs or other difficulties related to the continuing integration of our business and that of Boston Private;
•variations from our expectations as to the amount and timing of business opportunities, growth prospects and cost savings associated with the acquisition of Boston Private;
•the inability to retain existing Boston Private clients and employees following the Boston Private acquisition;
•unfavorable resolution of legal proceedings or claims, as well as legal or regulatory proceedings or governmental actions;
•variations from our expectations as to factors impacting our estimate of our full-year effective tax rate;
•changes in applicable accounting standards and tax laws; and
•regulatory or legal changes and their impact on us.
The operating and economic environment during the third quarter continued to be impacted by the COVID-19 pandemic and related government orders. Statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, potential variations of the virus, vaccination rates, the need for vaccine booster shots, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us.
For additional information about these and other factors, please refer to our public reports filed with the U.S. Securities and Exchange Commission, including under the caption "Risk Factors" in our most recent Annual Report filed on Form 10-K. The forward-looking statements included in this release are made only as of the date of this release. We do not intend, and undertake no obligation, to update these forward-looking statements.
Earnings Conference Call
On Thursday, October 21, 2021, we will host a conference call at 3:00 p.m. (Pacific Time) to discuss the financial results for the quarter ended September 30, 2021. The conference call can be accessed by dialing (888) 330-3016 or (646) 960-0828 and entering the confirmation number "5682116". A live webcast of the audio portion of the call can be accessed on the Investor Relations section of our website at www.svb.com. A replay of the audio webcast will also be available on www.svb.com for 12 months beginning on October 21, 2021.
Additional Information
For additional information about our business, financial results for the third quarter 2021 and financial outlook, please refer to our Q3 2021 Earnings Slides and Q3 2021 CEO Letter, which are available on the Investor Relations section of our website at www.svb.com. These materials should be read together with this release, and include important supplemental information including key considerations that may impact our financial outlook.
About SVB Financial Group
For nearly 40 years, SVB Financial Group (NASDAQ: SIVB) and its subsidiaries have helped innovative companies and their investors move bold ideas forward, fast. SVB Financial Group’s businesses, including Silicon Valley Bank, offer commercial, investment and private banking, asset management, private wealth management, brokerage and investment services and funds management services to companies in the technology, life science and healthcare, private equity and venture capital and premium wine industries. Headquartered in Santa Clara, California, SVB Financial Group operates in centers of innovation around the world. Learn more at www.svb.com.
SVB Financial Group is the holding company for all business units and groups © 2021 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, SVB LEERINK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group.
18


SVB FINANCIAL GROUP AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 Three months endedNine months ended
(Dollars in millions, except share data)September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Interest income:
Loans $519 $472 $369 $1,422 $1,117 
Investment securities:
Taxable332 251 156 807 452 
Non-taxable28 24 15 73 42 
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities
5 4 3 12 23 
Total interest income884 751 543 2,314 1,634 
Interest expense:
Deposits19 12 8 41 51 
Borrowings 13 11 7 33 18 
Total interest expense32 23 15 74 69 
Net interest income852 728 528 2,240 1,565 
Provision (reduction) for credit losses21 35 (52)75 258 
Net interest income after provision for credit losses
831 693 580 2,165 1,307 
Noninterest income:
Gains on investment securities, net 189 305 190 661 271 
Gains on equity warrant assets, net147 122 54 491 94 
Client investment fees20 15 32 55 107 
Wealth management and trust fees22 — — 22 — 
Foreign exchange fees65 67 44 189 128 
Credit card fees34 31 23 93 72 
Deposit service charges29 28 22 82 67 
Lending related fees
21 18 13 55 38 
Letters of credit and standby letters of credit fees
13 13 12 39 35 
Investment banking revenue
90 103 92 335 281 
Commissions17 17 16 58 49 
Other25 42 49 97 76 
Total noninterest income672 761 547 2,177 1,218 
Noninterest expense:
Compensation and benefits548 425 327 1,418 903 
Professional services 104 97 67 282 170 
Premises and equipment54 37 31 124 85 
Net occupancy25 17 19 60 56 
Business development and travel6 3 2 13 19 
FDIC and state assessments13 10 7 33 19 
Merger-related charges83 19 — 102 — 
Other46 45 38 136 118 
Total noninterest expense879 653 491 2,168 1,370 
Income before income tax expense624 801 636 2,174 1,155 
Income tax expense149 173 162 509 300 
Net income before noncontrolling interests and dividends
475 628 474 1,665 855 
Net income attributable to noncontrolling interests (88)(113)(28)(226)(40)
Preferred stock dividends
(22)(13)(4)(40)(12)
Net income available to common stockholders
$365 $502 $442 $1,399 $803 
Earnings per common share—basic$6.33 $9.23 $8.53 $25.54 $15.55 
Earnings per common share—diluted6.24 9.09 8.47 25.16 15.46 
Weighted average common shares outstanding—basic
57,722,890 54,352,725 51,773,181 54,772,192 51,640,112 
Weighted average common shares outstanding—diluted
58,521,274 55,151,596 52,146,660 55,616,669 51,950,734 


19

SVB FINANCIAL GROUP AND SUBSIDIARIES
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited) 
(Dollars in millions, except par value and share data)September 30, 2021June 30, 2021September 30, 2020
Assets:
Cash and cash equivalents $18,940 $23,959 $15,688 
Available-for-sale securities, at fair value (cost $22,919, $23,776 and $25,238, respectively)22,984 23,876 25,904 
Held-to-maturity securities, at amortized cost and net of allowance for credit losses of $6, $5 and less than $1 (fair value of $81,995, $60,107 and $13,612), respectively82,365 59,992 12,982 
Non-marketable and other equity securities2,485 1,943 1,548 
Investment securities107,834 85,811 40,434 
Loans, amortized cost 61,487 50,754 38,414 
Allowance for credit losses: loans(398)(396)(513)
Net loans61,089 50,358 37,901 
Premises and equipment, net of accumulated depreciation and amortization
247 196 173 
Goodwill344 143 138 
Other intangible assets, net156 57 45 
Lease right-of-use assets312 225 221 
Accrued interest receivable and other assets 2,074 2,650 2,317 
Total assets$190,996 $163,399 $96,917 
Liabilities and total equity:
Liabilities:
Noninterest-bearing demand deposits $115,388 $101,259 $57,508 
Interest-bearing deposits55,794 44,579 27,265 
Total deposits171,182 145,838 84,773 
Short-term borrowings97 34 19 
Lease liabilities390 277 247 
Other liabilities 2,733 3,449 3,067 
Long-term debt1,925 1,834 844 
Total liabilities176,327 151,432 88,950 
SVBFG stockholders’ equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized; 367,500, 367,500 and 350,000 shares issued and outstanding, respectively2,064 2,064 340 
Common stock, $0.001 par value, 150,000,000 shares authorized; shares, 58,677,483, 54,530,307 shares and 51,787,972 shares issued and outstanding, respectively— — — 
Additional paid-in capital 5,100 2,755 1,549 
Retained earnings7,071 6,706 5,284 
Accumulated other comprehensive income65 142 620 
Total SVBFG stockholders’ equity14,300 11,667 7,793 
Noncontrolling interests369 300 174 
Total equity14,669 11,967 7,967 
Total liabilities and total equity$190,996 $163,399 $96,917 
x


20

SVB FINANCIAL GROUP AND SUBSIDIARIES
INTERIM AVERAGE BALANCES, RATES AND YIELDS
(Unaudited)
 Three months ended
 September 30, 2021June 30, 2021September 30, 2020
(Dollars in millions, except yield/rate and ratios)Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate
Interest-earning assets:
Federal reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1)
$21,779 $5 0.10 %$21,069 $4 0.08 %$13,817 $2 0.08 %
Investment securities: (2)
Available-for-sale securities:
Taxable23,290 69 1.17 24,358 73 1.20 20,027 88 1.74 
Held-to-maturity securities:
Taxable64,899 262 1.61 43,352 178 1.65 10,286 69 2.66 
Non-taxable (3)5,613 36 2.53 4,562 31 2.73 2,267 19 3.31 
Total loans, amortized cost (4) (5)
59,291 519 3.47 49,812 472 3.80 37,319 369 3.93 
Total interest-earning assets
174,872 891 2.02 143,153 758 2.12 83,716 547 2.60 
Cash and due from banks 2,285 2,108 1,162 
Allowance for credit losses: loans(451)(411)(610)
Other assets (6) 5,984 5,867 4,080 
Total assets$182,690 $150,717 $88,348 
Funding sources:
Interest-bearing liabilities:
Interest bearing checking and savings accounts$4,310 $1 0.14 %$3,096 $1 0.11 %$4,298 $3 0.28 %
Money market deposits46,051 17 0.14 36,452 10 0.11 19,829 5 0.09 
Money market deposits in foreign offices
1,039 — 0.01 787 — 0.01 262 — 0.03 
Time deposits1,245 1 0.32 631 1 0.37 381 — 0.48 
Sweep deposits in foreign offices
1,109 — 0.01 1,264 — 0.01 1,366 — 0.03 
Total interest-bearing deposits
53,754 19 0.14 42,230 12 0.11 26,136 8 0.13 
Short-term borrowings99 — 0.17 39 — 0.19 16 — 0.10 
Long-term debt1,936 13 2.66 1,604 11 2.75 843 7 1.78 
Total interest-bearing liabilities
55,789 32 0.23 43,873 23 0.21 26,995 15 0.23 
Portion of noninterest-bearing funding sources
119,083 99,280 56,721 
Total funding sources174,872 32 0.07 143,153 23 0.06 83,716 15 0.07 
Noninterest-bearing funding sources:
Demand deposits109,638 91,530 51,544 
Other liabilities3,279 4,200 2,055 
Preferred stock
2,065 1,610 340 
SVBFG common stockholders’ equity
11,613 9,283 7,266 
Noncontrolling interests306 221 148 
Portion used to fund interest-earning assets
(119,083)(99,280)(56,721)
Total liabilities and total equity
$182,690 $150,717 $88,348 
Net interest income and margin
$859 1.95 %$735 2.06 %$532 2.53 %
Total deposits $163,392 $133,760 $77,680 
Average SVBFG common stockholders’ equity as a percentage of average assets 6.36 %6.16 %8.22 %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis
(7)(7)(4)
Net interest income, as reported
$852 $728 $528 
(1)Includes average interest-earning deposits in other financial institutions of $2.8 billion, $1.9 billion and $1.0 billion; and $15.9 billion, $16.7 billion and $11.3 billion deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate, for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively.
(2)Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income or loss.
(3)Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 21.0 percent for all periods presented.
(4)Nonaccrual loans are reflected in the average balances of loans.
(5)Interest income includes loan fees of $63 million, $68 million and $50 million for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively.
(6)Average investment securities of $3.0 billion, $3.4 billion and $2.1 billion for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, were classified as other assets as they are noninterest-earning assets. These investments consist primarily of non-marketable and other equity securities.

21

SVB FINANCIAL GROUP AND SUBSIDIARIES
INTERIM AVERAGE BALANCES, RATES AND YIELDS
(Unaudited) 
 Nine months ended
 September 30, 2021September 30, 2020
(Dollars in millions, except yield/rate and ratios)Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate
Interest-earning assets:
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1)
$20,357 $12 0.08 %$11,026 $23 0.28 %
Investment securities: (2)
Available-for-sale securities:
Taxable25,280 266 1.40 15,476 234 2.02 
Held-to-maturity securities:
Taxable43,439 540 1.67 10,947 218 2.66 
Non-taxable (3)4,634 93 2.69 2,107 53 3.39 
Total loans, amortized cost (4) (5)51,843 1,422 3.67 35,836 1,117 4.16 
Total interest-earning assets145,553 2,333 2.15 75,392 1,645 2.91 
Cash and due from banks1,979 952 
Allowance for credit losses for loans(449)(500)
Other assets (6)5,869 3,917 
Total assets$152,952 $79,761 
Funding sources:
Interest-bearing liabilities:
Interest bearing checking and savings accounts$3,692 $3 0.12 %$2,347 $5 0.27 %
Money market deposits37,876 36 0.13 18,330 41 0.30 
Money market deposits in foreign offices900 — 0.03 273 — 0.03 
Time deposits847 2 0.33 244 1 0.68 
Sweep deposits in foreign offices1,198 — 0.02 1,631 4 0.33 
Total interest-bearing deposits44,513 41 0.12 22,825 51 0.30 
Short-term borrowings50 — 0.16 533 3 0.83 
Long-term debt1,571 33 2.79 561 15 3.48 
Total interest-bearing liabilities
46,134 74 0.21 23,919 69 0.39 
Portion of noninterest-bearing funding sources
99,419 51,473 
Total funding sources145,553 74 0.07 75,392 69 0.12 
Noninterest-bearing funding sources:
Demand deposits91,600 46,341 
Other liabilities3,831 2,119 
Preferred stock1,502 340 
SVBFG common stockholders’ equity9,639 6,892 
Noncontrolling interests246 150 
Portion used to fund interest-earning assets(99,419)(51,473)
Total liabilities and total equity$152,952 $79,761 
Net interest income and margin$2,259 2.08 %$1,576 2.79 %
Total deposits$136,113 $69,166 
Average SVBFG stockholders’ equity as a percentage of average assets
6.30 %8.64 %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis(19)(11)
Net interest income, as reported$2,240 $1,565 

(1)Includes average interest-earning deposits in other financial institutions of $2.1 billion and $936 million for the nine months ended September 30, 2021 and September 30, 2020. The balance also includes $15.8 billion and $8.9 billion deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate for the nine months ended September 30, 2021 and September 30, 2020, respectively.
(2)Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income or loss.
(3)Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 21.0 percent for all periods presented.
(4)Nonaccrual loans are reflected in the average balances of loans.
(5)Interest income includes loan fees of $189 million and $136 million for the nine months ended September 30, 2021 and September 30, 2020, respectively.
(6)Average investment securities of $3.2 billion and $1.9 billion for the nine months ended September 30, 2021 and September 30, 2020, respectively, were classified as other assets as they are noninterest-earning assets. These investments consisted primarily of non-marketable and other equity securities.

22

Reconciliation of Basic and Diluted Weighted Average Common Shares Outstanding 
 Three months endedNine months ended
(Shares in thousands)September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
Weighted average common shares outstanding—basic
57,723 54,353 51,773 54,772 51,640 
Effect of dilutive securities:
Stock options and employee stock purchase plan
268 272 141 278 147 
Restricted stock units
530 527 232 567 163 
Total effect of dilutive securities798 799 373 845 310 
Weighted average common shares outstanding—diluted
58,521 55,152 52,146 55,617 51,950 
Credit Quality
(Dollars in millions, except ratios)September 30, 2021June 30, 2021September 30, 2020
Nonaccrual, past due and restructured loans:
Nonaccrual loans$114 $79 $106 
Loans past due 90 days or more still accruing interest3 3 — 
Total nonperforming loans117 82 106 
OREO and other foreclosed assets1 1 1 
Total nonperforming assets$118 $83 $107 
Nonperforming loans as a percentage of total loans0.19 %0.16 %0.28 %
Nonperforming assets as a percentage of total assets0.06 0.05 0.11 
Allowance for credit losses for loans$398 $396 $513 
As a percentage of total loans0.65 %0.78 %1.34 %
As a percentage of total nonperforming loans340.17 482.93 485.25 
Allowance for credit losses for nonaccrual loans$33 $38 $64 
As a percentage of total loans0.06 %0.07 %0.17 %
As a percentage of total nonperforming loans28.21 46.34 61.00 
Allowance for credit losses for total performing loans$365 $358 $449 
As a percentage of total loans0.59 %0.71 %1.17 %
As a percentage of total performing loans0.59 0.71 1.17 
Total loans$61,487 $50,754 $38,414 
Total performing loans61,370 50,672 38,308 
Allowance for credit losses for unfunded credit commitments (1)149 120 101 
As a percentage of total unfunded credit commitments0.37 %0.33 %0.33 %
Total unfunded credit commitments (2)$40,785 $36,385 $30,330 

(1)The “allowance for credit losses for unfunded credit commitments” is included as a component of “other liabilities.”
(2)Includes unfunded loan commitments and letters of credit.


23

Use of Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures (including, but not limited to, non-GAAP core fee income, non-GAAP SVB Leerink revenue, non-GAAP core fee income plus non-GAAP SVB Leerink revenue, non-GAAP net gains on investment securities, non-GAAP non-marketable and other equity securities and non-GAAP financial ratios) of financial performance. These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirement.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures (as applicable), provide meaningful supplemental information regarding our performance by: (i) excluding amounts attributable to noncontrolling interests for which we effectively do not receive the economic benefit or cost of, where indicated, or (ii) providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, net income or other financial measures prepared in accordance with GAAP. In the financial tables below, we have provided a reconciliation of, where applicable, the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release, or a reconciliation of the non-GAAP calculation of the financial measure.

Additionally, from time to time, we may make reference to the non-GAAP financial metric of Core EPS in our earnings call and other investor presentations. Non-GAAP Core EPS consists of our net income available to common stockholders less gains or losses on investment securities, equity warrant assets and income and expenses related to SVB Leerink, net of tax, divided by our diluted weighted average common shares outstanding. Our management believes this measure to be a useful assessment of our performance as it relates to our core business because it excludes certain financial items where performance is typically subject to market or other conditions beyond our control. A reconciliation of Core EPS to the closest corresponding GAAP measure is not available with respect to future goals due to our inability to provide a quantitative reconciliation to such measure.
In particular, in this press release, we use certain non-GAAP measures that exclude the following from net income and certain other financial line items in certain periods:
•Income and expense attributable to noncontrolling interests — As part of our funds management business, we recognize the entire income or loss from certain funds where we own less than 100 percent. We are required under GAAP to consolidate 100 percent of the results of certain SVB Capital funds. The relevant amounts attributable to investors other than us are reflected under “Net Income Attributable to Noncontrolling Interests.” Our net income available to common stockholders/certain financial line items include only the portion of income or loss related to our ownership interest.
In addition, in this press release, we use certain non-GAAP financial ratios and measures that are not required by GAAP or exclude certain financial items from calculations that are otherwise required under GAAP, including:

•Non-GAAP core fee income plus SVB Leerink revenue — This measure represents noninterest income but excludes certain line items where performance is typically subject to market or other conditions beyond our control. We do not provide our outlook for the expected full year results for these excluded items, which include net gains or losses on investment securities, net gains or losses on equity warrant assets and other noninterest income items.

•Non-GAAP core fee income — This measure represents noninterest income but excludes certain line items where performance is typically subject to market or other conditions beyond our control, as well as our non-GAAP SVB Leerink revenue, and represents client investment fees, wealth management and trust fees, foreign exchange fees, credit card fees, deposit service charges, lending related fees and letters of credit and
24

standby letters of credit fees. We do not provide our outlook for the expected full year results for these excluded items, which include net gains or losses on investment securities, net gains or losses on equity warrant assets and other noninterest income items.

•Non-GAAP SVB Leerink revenue — This measure represents noninterest income but excludes certain line items where performance is typically subject to market or other conditions beyond our control, as well as our non-GAAP core fee income, and represents investment banking revenue and commissions. We do not provide our outlook for the expected full year results for these excluded items, which include net gains or losses on investment securities, net gains or losses on equity warrant assets and other noninterest income items.

•Tangible common equity, or tangible book value, to tangible assets ratio; tangible common equity to risk-weighted assets ratio — These ratios are not required by GAAP or applicable bank regulatory requirements and are used by management to evaluate the adequacy of our capital levels. Risk-based capital guidelines require a minimum level of capital as a percentage of risk-weighted assets. Risk-weighted assets are calculated by assigning assets and off-balance sheet items to broad risk categories. Our ratios are calculated by dividing total SVBFG stockholders’ equity, by total assets or total risk-weighted assets, as applicable, after reducing amounts by acquired intangibles, if any.
Three months endedNine months ended
Non-GAAP core fee income plus SVB Leerink revenue, non-GAAP SVB Leerink revenue and non-GAAP core fee income (Dollars in millions)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020September 30, 2021September 30, 2020
GAAP noninterest income $672 $761 $744 $622 $547 $2,177 $1,218 
Less: gains on investment securities, net
189 305 167 150 190 661 271 
Less: net gains on equity warrant assets
147 122 222 144 54 491 94 
Less: other noninterest income
25 42 30 21 49 97 76 
Non-GAAP core fee income plus SVB Leerink revenue$311 $292 $325 $307 $254 $928 $777 
Investment banking revenue90 103 142 133 92 335 281 
Commissions17 17 24 18 16 58 49 
Less: non-GAAP SVB Leerink revenue$107 $120 $166 $151 $108 $393 $330 
Non-GAAP core fee income $204 $172 $159 $156 $146 $535 $447 
Three months endedNine months ended
Non-GAAP net gains on investment securities, net of noncontrolling interests (Dollars in millions)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020September 30, 2021September 30, 2020
GAAP net gains on investment securities
189 305 167 150 190 661 271 
Less: income attributable to noncontrolling interests, including carried interest allocation88 113 25 46 28 226 41 
Non-GAAP net gains on investment securities, net of noncontrolling interests
$101 $192 $142 $104 $162 $435 $230 

25

Period-end balances at
Non-GAAP non-marketable and other equity securities, net of noncontrolling interests (Dollars in millions)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
GAAP non-marketable and other equity securities $2,485 $1,943 $1,858 $1,802 $1,548 
Less: amounts attributable to noncontrolling interests
349 298 226 213 168 
Non-GAAP non-marketable and other equity securities, net of noncontrolling interests
$2,136 $1,645 $1,632 $1,589 $1,380 
Period-end balances at
SVB Financial Group tangible common equity, tangible assets and risk-weighted assets (Dollars in millions, except ratios)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
GAAP SVBFG stockholders’ equity$14,300 $11,667 $9,895 $8,220 $7,793 
Less: preferred stock2,064 2,064 1,079 340 340 
Less: intangible assets500 200 202 204 183 
Plus: net deferred taxes on intangible assets25 — (1)— — 
Tangible common equity$11,761 $9,403 $8,613 $7,676 $7,270 
GAAP total assets$190,996 $163,399 $142,347 $115,511 $96,917 
Less: intangible assets500 200 202 204 183 
Plus: net deferred taxes on intangible assets25 — (1)— — 
Tangible assets $190,521 $163,199 $142,144 $115,307 $96,734 
Risk-weighted assets $92,441 $78,231 $71,059 $64,681 $54,738 
Tangible common equity to tangible assets6.17 %5.76 %6.06 %6.66 %7.52 %
Tangible common equity to risk-weighted assets12.72 12.02 12.12 11.87 13.28 
Period-end balances at
Silicon Valley Bank tangible common equity, tangible assets and risk-weighted assets (Dollars in millions, except ratios)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
Tangible common equity$13,404 $10,428 $8,766 $7,069 $6,104 
Tangible assets$188,329 $161,197 $140,231 $113,303 $95,012 
Risk-weighted assets$89,408 $75,795 $68,058 $61,023 $51,793 
Tangible common equity to tangible assets7.12 %6.47 %6.25 %6.24 %6.42 %
Tangible common equity to risk-weighted assets14.99 13.76 12.88 11.58 11.79 
26
1 Q3 2021 Earnings Highlights SVB Financial Group Q3 2021 CEO Letter October 21, 2021 To our Stakeholders SVB delivered exceptional financial performance in the third quarter, with Earnings Per Share of $6.24, Net Income of $365 million and year-to-date Return on Equity of 19 percent. We achieved these results even with an estimated EPS impact of $1.59 due to both an $83 million in one-time, pre-tax merger- related charges and a day-one provision of $46 million related to the acquisition of Boston Private. Q3’21 drivers: strong markets, innovation economy tailwinds and effective execution Robust global VC and PE fundraising, investment and exit activity continued in the third quarter, generating ample liquidity for our clients and strong balance sheet growth for us, which was amplified by our acquisition of Boston Private:  Average assets grew by 21% to $183B, a 107% increase over the same period last year.  Average client funds grew by 15% to $355B, an increase of 76% year over year that reflects $86 billion (+110%) of on-balance sheet deposit growth year over year.  Average loans grew by 19%, a 59% increase year over year.  Average fixed income securities grew by 30% to $94 billion, a 188% increase year over year that reflects $26B in securities purchases in the third quarter alone.  Our exceptional balance sheet growth drove a 17% increase in net interest income to $859 million, a 61% increase year over year, despite continuing pressure from low interest rates. Our balance sheet has now grown to a size that enables us to generate strong, sustainable NII growth, even without help from interest rates.  Core fee income grew by 19% during the quarter, (40% year over year) due to Wealth Management and Trust fees from Boston Private, an improved client investment fee margin and increased card activity.  SVB Leerink delivered strong revenues of $107 million, for a total of $393 million year to date, while robust private markets drove warrant and investment gains of $248 million in the quarter, for a total of $926 million year to date net of NCI. To support our substantial growth, in the third quarter we issued $1.3 billion of common stock (gross of fees) and downstreamed $1.5 billion of holding company liquidity to the bank. Historically our strong earnings have offset the impact of our balance sheet growth, enabling us to build our capital ratios. However, our recent exceptional balance sheet growth has temporarily pressured capital ratios despite continued robust profitability. Accessing the capital markets enables us to maintain our growth momentum in the near term while investing in driving growth and profitability for the long-term. We continue to execute on our strategic vision, extending and diversifying our business to support our innovative clients as they grow. Notably, in the third quarter we completed our acquisition of Boston Private and turned our focus to integrating our Private Bank and Wealth Management capabilities and teams. We also significantly expanded our investment banking capabilities, with key new hires in Technology, Healthcare Services and HealthTech investment banking at SVB Leerink.

 
2 Q3 2021 Earnings Highlights We continue to expand our physical presence in key markets. We opened an office in Miami in the third quarter to focus on early-stage startups and expanded to Montréal. We also announced an SVB Leerink office in Nashville – home to more than 500 healthcare firms – to serve that growing market. Raising 2021 outlook and introducing strong preliminary outlook for 2022 As a result of our continued outperformance, we are again raising our 2021 full-year outlook for balance sheet growth and revenues with an attendant increase in our expense outlook related to higher incentive compensation. Our strong preliminary outlook for 2022 reflects our expectation of continued robust activity in our markets and the broader innovation economy. While we are watching valuations and the markets for any sign of change from the exceptionally high levels of liquidity we’ve seen in the past year, the global innovation economy continues to attract record investment, accelerated by digital adoption and healthcare activity, and both global fundraising and dry powder remain at historic highs. Due to our exceptional growth and execution in 2021 and based on the continuing health of our markets, we believe we are poised for another strong year, even without any significant rate benefit. Our 2022 outlook calls for continued strong balance sheet growth – with average loan growth in the mid-20% range on top of continued stable credit and average deposits in the low 40% range; net interest income growth in the mid-30% range, albeit on a much larger base, with somewhat lower NIM due to liquidity deployment; and mid-20% core fee income growth; as well as higher SVB Leerink revenues relative to 2021, which has been an exceptional year. While we expect 2022 expense growth to slow from 2021’s growth rate, we are increasing our investments in our strategic priorities of enhancing the client experience, driving revenue growth, improving employee enablement and enhancing risk management. We expect to generate substantial operating leverage in our core business – even without warrant and investment gains -- with expected growth in revenues from NII, SVB Leerink and core fees outpacing expected growth in expenses by nearly 2.5 times (in dollars) as implied by our FY’21 and FY’22 guidance. Further accelerating investments to realize our vision, and drive long-term growth Considering this opportunity, we believe it makes sense to accelerate investment now to extend our leadership in the innovation economy and more firmly seize the opportunity ahead of us. Our vision is to be the partner of choice for innovators, enterprises and investors, and this continues to drive our strategy. We have built a unique platform of four complementary businesses – Commercial Banking, Private Banking & Wealth Management, Investment Banking and PE/VC fund management (SVB Capital) – as well as an unmatched network and differentiated expertise. Now we are focused on bringing the full power of the SVB platform to each client relationship. With SVB Leerink, we are building a full-service investment bank dedicated to the innovation economy. The success of SVB Leerink to date has exceeded our expectations, allowing us to attract highly sought- after experts to complement our current team and capabilities, and enhancing our ability to deliver strategic support to our clients as they prepare to raise capital or pursue M&A. Over the past nine months, we have added leadership in Healthcare Services and HealthTech to our industry-leading Life

 
3 Q3 2021 Earnings Highlights Sciences and Healthcare practice, and extended our capabilities in leveraged finance, private placements and structured finance. In Q3, we expanded the SVB Leerink platform to technology investment banking– a key step toward our being able to offer a full range of investment banking services for our innovation clients. Year to date we’ve hired 87 investment bankers – more than doubling the size of the investment banking team – and expect to add another 35 to 50 people in 2022 in the areas of Technology equity capital markets and research, and Fintech. We expect these investments to drive incremental SVB Leerink revenues of $150-$200 million in 2022 alone, and to enable us to develop and retain deeper, more meaningful relationships with our clients over time. We completed our acquisition of Boston Private and are making meaningful progress toward creating a premier private bank and wealth management platform for our clients. A key aspect of this work will be integration to leverage the best of both platforms – SVB’s knowledge and access to the innovation economy and Boston Private’s private banking and wealth solutions and expertise – and ensure a differentiated client experience. As part of this effort, we will be developing a team-based client engagement model to deliver holistic advice and solutions to our clients. We are seeing promising green shoots and synergies already, with nearly $700 million in mortgage originations across our legacy Private Bank and new Boston Private platform in Q3, and the recruitment of 10 new wealth advisors since the acquisition. In addition to improving client penetration and growing our residential mortgage book, we plan to use our platform to offer unique and differentiated products, including private stock solutions, investment opportunities through SVB Capital and private placements, and Trust and family office services. While we are early in the integration process, we believe our successful efforts will enable us to penetrate this compelling $400 billion (and growing) opportunity among our clients. We are accelerating our investments in creating an enhanced experience for our clients. A significant piece of this enhancement will be the completion of integrated, end-to-end digital banking and digital client onboarding across the business, as well as platform upgrades, APIs and payment enablement solutions. We are continuously expanding our products, through development and partnership, to ensure we can meet our clients’ needs throughout their life cycles. Our recently announced partnership with Plaid will enable our clients to instantly authenticate their bank information and securely generate tokenized payments. And we expect to leverage our new Nasdaq Private Market joint venture and our private banking capabilities to build out our solutions in private stock lending, advisory services and trading. On top of these efforts, we are accelerating our investments in talent acquisition and retention, client acquisition and product penetration. We are also leaning in on our projects to enhance employee enablement and drive scalability and efficiencies across the organization, while keeping pace with our rapid growth and enhancing our risk management capabilities and infrastructure to support a larger and more diversified global organization. Long-term financial targets We believe our robust earnings power, diversified business lines and compelling markets will continue to enable us to deliver strong growth and profitability.

 
4 Q3 2021 Earnings Highlights With this in mind, we are reintroducing select, long-term financial targets for our growth and profitability. These are not annual guidance, but a view into how we are thinking about the long-term potential of our business. - In a low-rate environment (with Fed Funds between 0% and 2.5%), we would expect ROE of approximately 15% and EPS growth of 10% on an annualized basis. - In a normalized but stable rate environment (with Fed Funds greater than 2.5%), we would expect ROE of approximately 20% and 10% EPS growth annualized. - Should we enter a sustained rising rate environment, we would expect EPS growth to increase to approximately 20% annualized. Again, these are not annual guidance but long-term targets. Summary We remain very positive about the opportunities ahead of us. While liquidity in the innovation markets is at historic highs, we believe demand for investment in the fastest growing segment of the global economy will remain robust and our markets will thrive over the long term. We are making consistent progress in executing on our vision, along with bold steps to advance and expand our platform in investment banking and wealth management. Our outstanding financial performance is the best evidence of our success and we remain focused on relentless execution. We raised our full year outlook for the third time this year and our preliminary 2022 outlook is stronger than any preliminary outlook in years. Our exceptional balance sheet growth to date provides the foundation for substantial NII growth. And our outstanding performance and strong financial position give us the flexibility to increase investment now to extend our leadership position. In the current environment, we believe the larger balance sheet and diversified business we’ve built will drive sustainable revenue growth, regardless of market-related gains and well in excess of our increased investment. By expanding and enhancing our solutions and expertise, we expect to deepen our relationships and goodwill with clients and increase the value we can provide to them as they grow. Moreover, eventual rate increases as the economy improves will amplify our earnings power beyond our current expectations. With robust earnings power, a diversified business model, and the world’s most dynamic clients we have never been better positioned to deliver long-term, scalable growth. Greg Becker President and CEO

 
Q3 2021 Financial highlights

 
Contents This presentation should be reviewed with our Q3 2021 Earnings Release and Q3 2021 CEO Letter, as well as the company’s SEC filings Snapshot and current environment PAGE 3 Performance detail and outlook drivers PAGE 21 Appendix PAGE 37 Non-GAAP reconciliations PAGE 54 Q3 2021 Financial Highlights 2

 
Q3 2021 Financial Highlights 3 Snapshot and current environment

 
Q3’21 Snapshot: Continued innovation economy momentum and strong execution drove outstanding earnings and exceptional growth Q3 2021 Financial Highlights 4 Q3’21 PERFORMANCE Changes are vs. Q2’21 $107M SVB LEERINK REVENUE3, 4 $59B +19% AVERAGE LOANS2 +5% excluding BP loans $355B +15% AVERAGE CLIENT FUNDS1 +12% excluding BP deposits $21M PROVISION FOR CREDIT LOSSES (Day 1 provision for BP non- PCD loans and unfunded commitments, partially offset by performing reserve release) $859M +17% NET INTEREST INCOME2 +12% excluding BP NII EPS: $6.24* ROE: 12.5% Net Income: $365M $204M +19% CORE FEE INCOME3 +6% excluding BP WM&T fees Note: On July 1, 2021 we completed the acquisition of Boston Private ("BP"). Financial results for Q3’21 include the activities of Boston Private. QoQ changes noted as “excluding BP” exclude Boston Private’s Q3’21 balances and earnings. 1. As a result of completing the BP acquisition, Private Bank assets under management (“AUM”) are no longer reported in off-balance sheet client investment funds beginning in Q3’21. Q2’21 Private Bank AUM was $1.7B. 2. SBA Paycheck Protection Program (“PPP”) contributed $0.6B to average loan balances and $9M to net interest income, including $7M of loan fees. Net interest income presented on a fully taxable equivalent basis. 3. Non-GAAP financial measure. See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and our non-GAAP reconciliations at the end of this presentation. 4. Represents investment banking revenue and commissions. FINANCIAL HIGHLIGHTS $248M WARRANT AND INVESTMENT GAINS NET OF NCI3 $83M PRE-TAX MERGER-RELATED CHARGES $46M PRE-TAX DAY 1 PROVISION FOR BP NON-PCD LOANS AND UNFUNDED COMMITMENTS (included in $21M provision) *includes –$1.59 impact from

 
Q3’21 Highlights Q3 2021 Financial Highlights 5 *Non-GAAP financial measure. See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and our non-GAAP reconciliations at the end of this presentation. 1. Thriving innovation markets and strong execution continued to drive outstanding earnings and exceptional growth 2. Closed acquisition of Boston Private on 7/1/21 to accelerate private banking and wealth management business 3. Average client funds surged (+$38B excluding BP) as VC investment activity fueled client liquidity, driving exceptional balance sheet growth and strong NII 4. Continued robust GFB loan growth (+$3B QoQ) and addition of Boston Private loan portfolio ($7B) grew average loans +19% 5. Lower provision despite $46M day 1 provision for BP non-purchase credit deteriorated loans and unfunded commitments as credit remained stable and enhanced reserve modeling drove performing reserve release 6. Strong warrant and investment gains net of NCI* of $248M as exit and fundraising activity remained robust 7. Core fees* +19% QoQ buoyed by addition of BP Wealth Management and Trust fees, improved client investment fee margin and increased card activity 8. Robust SVB Leerink revenue* of $107M – pipeline remains strong; launched Technology Investment Banking 9. Outperformance drove increase in incentive compensation, causing Q3 expenses to exceed guidance 10. Issued ~$1.3B of common stock gross of fees to support our growth momentum and investments in our business; issued additional ~$1.1B of common stock to complete Boston Private acquisition 11. Increased FY’21 growth outlook and expect continued momentum in 2022 – significant outperformance and ability to generate strong, sustainable NII allows us to further accelerate investments to capitalize on our long-term growth opportunity Outstanding earnings and exceptional growth Q3 2021 Financial Highlights 5

 
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2017 2018 2019 2020 9/30/21 YTD Resilient, highly liquid markets Strong execution Exceptional growth & peer-leading profitability 1,332 1,528 1,475 1,362 1,388 199 336 300 339 500 1,531 1,864 1,775 1,701 1,888 2017 2018 2019 2020 9/30/21 YTD Strong markets and effective execution continued to drive extraordinary growth 6 GLOBAL PE & VC INVESTMENT $ Billions 346 270 302 422 445 2017 2018 2019 2020 9/30/21 YTD GLOBAL VC-BACKED IPOS Count Note: VC, PE and IPO data sourced from PitchBook. Investment data has been updated with PitchBook’s proprietary back-end data set and filters which has resulted in prior period revisions. 1. Excludes new Private Bank clients and legacy Boston Private clients gained through the acquisition of Boston Private. 2. Source: S&P Global Market Intelligence. Represents the average of the return on equity (“ROE”) for each of our peers. For each year, “peers” refers to our peer group as reported in our Proxy Statement and is subject to change on an annual basis. 3. 9/30/21 YTD represents annualized ROE. 9/30/21 YTD peer ROE includes 7 of 15 peers as of October 20, 2021. VC PE SVB COMMERCIAL CLIENT COUNT ~1,700+ new commercial clients in Q3’211 AVERAGE CLIENT FUNDS $ Billions Average Deposits 51 75 92 117 172 43 48 55 75 136 94 123 147 192 309 2017 2018 2019 2020 9/30/21 YTD STRATEGIC GROWTH INVESTMENTS SVB Peer Average2 RETURN ON EQUITY Other PE/VC VC-Backed Pre- VC-Backed 12.4% 20.6% 20.0% 16.8% 19.4% 9.8% 12.8% 11.8% 8.3% 13.2% 2017 2018 2019 2020 9/30/21 YTD DIGITAL CLIENT EXPERIENCE EMPLOYEE ENABLEMENT INTERNATIONALSVB Leerink WestRiver DEBT INVESTMENT BUSINESS ACQUISITION Boston Private ACQUISITION NEW PRODUCTS LARGE FINANCIAL INSTITUTION & U.K. SUBSIDIARIZATION REQUIREMENTS Q3 2021 Financial Highlights Average OBS Client Funds 3

 
S&P 500 ex Nasdaq-100 2.0x Robust tailwinds supporting the innovation economy Q3 2021 Financial Highlights 7 Note: Market data sourced from FactSet. VC and PE dry powder data sourced from PitchBook. Dry powder data has been updated with PitchBook’s proprietary back-end data set and filters which has resulted in prior period revisions. 1. Nasdaq 100 Index used as a proxy for technology markets. 2. Source: Refinitiv. Historical revenue growth for companies included in the Nasdaq-100 and S&P 500 (excluding Nasdaq-100 companies) as of September 30, 2021. 3. Most recent data available. 10Y U.S. TREASURY YIELD REVENUE GROWTH2 % vs. 12/31/16 Attractive growth opportunity... AS OF 9/30/21 INDEXED PRICE % vs. 1/1/17 …amplified by historically low rates… …and acceleration of digital adoption AS OF 6/30/21 Nasdaq-1001 3.0x 1.5% AS OF 9/30/21 Nasdaq-1001 1.8x S&P 500 ex Nasdaq-100 1.3x 9/30/21 9/30/21 Significant dry powder… 288 308 387 391 444 2017 2018 2019 2020 3/31/21 GLOBAL VC DRY POWDER $ Billions 1,052 1,181 1,284 1,331 1,421 2017 2018 2019 2020 3/31/21 GLOBAL PE DRY POWDER $ Billions …to support future investment 3 3 6/30/21

 
17 20 21 16 16 18 20 24 30 39 43 51 75 92 117 173 4 4 5 9 12 15 18 20 28 37 39 43 48 55 75 136 21 24 26 25 28 33 38 44 58 76 82 94 123 147 192 309 24% 15% 9% -4% 9% 20% 14% 15% 33% 29% 9% 15% 31% 19% 31%25% 28% -2% -25% 15% 42% -8% 17% 53% 14% -4% 8% 63% -0.4% 16% -200% -150% -100% -50% 0% 50% 100% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9/30/21 YTD 8 Strong liquidity franchise + innovation economy momentum driving resilient client funds growth TOTAL AVERAGE CLIENT FUNDS 15-YEAR HISTORY ($ Billions) Q3 2021 Financial Highlights Global Financial Crisis VC Recalibration2 COVID-19 Pandemic Note: VC investment data sourced from PitchBook. Investment data has been updated with PitchBook’s proprietary back-end data set and filters which has resulted in prior period revisions. 1. 9/30/21 YTD vs. 9/30/20 YTD percentage change. 2. Pullback in VC investment. Annual total client funds growth rate (positive, negative) On-balance sheet deposits Annual U.S. VC investment growth rate (positive, negative)Off-balance sheet client funds 9/30/21 YTD growth rate1 Average client funds 70% U.S. VC investment 95%

 
SILICON VALLEY BANK CAPITAL RATIOS1 As of 9/30/21 Active capital management to support extraordinary growth 9 1. Ratios as of September 30, 2021 are preliminary and include impact of the Boston Private acquisition. 2. Excludes $1.1B shares issued on July 1, 2021 to complete Boston Private acquisition. 7.00% 8.50% 10.50% 4.00% 14.66% 14.66% 15.19% 7.32% Common Equity Tier 1 Tier 1 Capital Total Capital Tier 1 Leverage SVB capital ratio Regulatory minimum Q3 2021 Financial Highlights Levers to support capital 12.5% Q3’21 ROE Strong profitability builds capital 45% OF Q3’21 AVERAGE CLIENT FUNDS GROWTH EXCLUDING BP IN OBS CLIENT FUNDS (36% including addition of BP deposits) Off-balance sheet solutions help optimize growth $1.75B PREFERRED STOCK Capital markets activity to support growth $1.1B 9/30/21 SVBFG LIQUIDITY SVBFG liquidity a portion of which can be downstreamed to Bank $1B SENIOR NOTES $2.4B COMMON STOCK2 2021 YTD NEW ISSUANCES $3B TRANSFERRED FROM AFS TO HTM IN Q3’21 Interest rate risk management to mitigate OCI risk $11B FAIR VALUE HEDGES AS OF 9/30/21 (49% OF AFS) Shortening duration OF AFS PORTFOLIO TO ~2 YEARS (HEDGE-ADJUSTED TARGET) Q3’21 common equity issuances • Issued ~$1.3B common stock, gross of fees, to support growth momentum and investments • Issued ~$1.1B common stock to complete Boston Private acquisition • $1.5B downstream of SVBFG liquidity to Bank • Strong earnings and robust balance sheet growth • Day 1 impact of BP acquisition approximately flat to slightly accretive to Bank capital ratios Targeting 7-8% Bank Tier 1 Leverage Q3’21 Bank capital ratio drivers Amounts are gross of fees

 
Raising FY’21 growth outlook; expect continued momentum in 2022 Outlook considerations • Raising FY’21 growth outlook again as economic conditions further improve and strong tailwinds continue to support the innovation economy • Expect robust growth to continue in 2022, although moderating from 2021’s exceptional levels, reflecting the strength of our markets, our larger balance sheet and effective execution of our growth initiatives • Outstanding performance and strong outlook provide opportunity to further accelerate our investments to drive and support long-term growth • Outlook includes Boston Private operating expenses but excludes merger-related charges – estimate ~$25M pretax merger-related charges in Q4’21 and ~$40M spread relatively evenly in FY’22 • Outlook also excludes impact of potential changes relating to: interest rates; material deterioration in the overall economic environment; and corporate tax or other regulatory/policy changes under the current U.S. government administration Preliminary 2022 outlook FY’22 vs. FY’21FY’20 results Note: Actual results may differ. 2022 outlook is preliminary and subject to change. For additional information about our financial outlook, please refer to our Q3 2021 Earnings Release and Q3 2021 CEO Letter. 1. Excludes fully taxable equivalent adjustments. 2. Non-GAAP financial measure. See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and our non-GAAP reconciliations at the end of this presentation. 3. Excludes SVB Leerink. 4. Represents investment banking revenue and commissions. Business driver Mid 20s % growth$37.3BAverage loans Mid 40s % growth Low 40s % growth$75.0BAverage deposits Mid 90s % growth Mid 30s % growth$2,156MNet interest income1 Mid 40s % growth 1.90%–2.00%2.67%Net interest margin 2.00%-2.10% Low 20s % growth$2,035M Noninterest expenseexcluding merger-related charges Low 40s % growth 25%–27%27.0%Effective tax rate 25%–27% Mid 20s % growth$603MCore fee income2, 3 Low 20s % growth $625M–675M$481MSVB Leerink revenue2, 4 $525M–$550M 0.20%–0.40%0.20%Net loan charge-offs 0.20%–0.40% Current outlook FY’21 vs. FY’20 Q3 2021 Financial Highlights 10 Mid 40s % growth Low 90s % growth Mid 40s % growth 2.00%–2.10% Mid 30s % growth 25%–27% High teens % growth $480M–510M 0.20%–0.40% 7/22/21 outlook FY’21 vs. FY’20

 
Our vision: Be the most sought-after digital-age partner helping innovators, enterprises and investors move bold ideas forward fast 11 Clients SVB Private Bank Private banking and wealth management Silicon Valley Bank Global commercial banking SVB Capital Private venture investing expertise, oversight and management SVB Leerink Investment banking for technology, healthcare and life science companies Q3 2021 Financial Highlights Expanding and deepening our global platform: , and have bolstered organic initiatives to meet clients’ needs at all stages M&AStrategic investments hiring New Tech, Healthcare Services & Healthtech hires DEBT INVESTMENT BUSINESS

 
Further accelerating investments to drive and support long-term growth 12Q3 2021 Financial Highlights 1. See page 10 for more information. 2. Source: PitchBook. As of March 31, 2021 – most recent data available. 3. Category III standards will become applicable at >$250B in average total consolidated assets or >$75B in weighted short- term wholesale funding, nonbank assets or off-balance-sheet exposure. Improve employee enablement Drive revenue growth Enhance risk management Enhance client experience • Agile ways of working • nCino credit onboarding platform • Mobile and collaboration tools • Client and industry insights • Global Delivery Centers • Diversity, Equity & Inclusion initiatives • Data foundation • Cybersecurity • Large Financial Institution regulatory requirements (Category IV (>$100B in average total consolidated assets); preparing for Category III3) • U.K. subsidiarization • End-to-end digital banking platform • Digital client onboarding • Technology platform upgrades • APIs and payment enablement • Strategic partnerships to accelerate product delivery • SVB Leerink expansion (healthcare services and technology investment banking) • Private Banking & Wealth Management integration and go-to-market strategy • Strategic investments • Talent attraction, retention and development • Client acquisition • New products (payments and cards + enhancements to sponsor-led buyout and recurring revenue-based loans) • Product penetration • Fintech strategy • Geographic expansion • SVB Capital debt fund and life science strategy Investing NOW to extend leadership position in the innovation economy Outstanding performance Strong, sustainable NII growth Compelling markets 19.4% 9/30/21 YTD ROE Mid 30s% PRELIMINARY FY’22 NII GROWTH OUTLOOK1 ~$1.9T GLOBAL PE/VC DRY POWDER2 Accelerated investments in 2022 will drive long-term scalable growth

 
Building the premier investment bank dedicated to the innovation economy Q3 2021 Financial Highlights 13 SVB Leerink expansion initiatives enhance ability to deliver strategic support to our clients as they grow NEW Equity Capital Markets Convertible Securities Alternative Equities Institutional Equities Equity Research M&A Advisory MEDACorp Leveraged Finance Private Placements Structured Finance ADDED 2021 INITIAL TECHNOLOGY CAPABILITIES ~35-50 anticipated additional hires through year-end 2022 to build out technology equity capital markets, fintech and equity research ~$150M-$200M expected additional SVB Leerink revenue in 2022 from combined new initiatives, shifting the mix of business towards higher margin advisory fees* BIOPHARMAMEDICAL DEVICES TOOLS & DIAGNOSTICS HEALTHCARE SERVICES DIGITAL HEALTH & HEALTHTECH TECHNOLOGY LIFE SCIENCES/HEALTHCARE Expanded in 2021 EDUCATION TECHNOLOGY INDUSTRIAL TECHNOLOGY ENTERPRISE SOFTWARE DIGITAL INFRA & TECH SERVICES CONSUMER INTERNET, COMMERCE & MARKETING FINTECH Coming soon • Launched Technology Investment Banking in September • Deepened Healthcare Services and Healthtech Practices • Added Leveraged Finance, Private Placements and Structured Finance capabilities 9/30/21 YTD HIGHLIGHTS 43 Technology and 44 Healthcare Services and Healthtech investment bankers hired YTD LOOKING AHEAD * Included in preliminary FY’22 outlook for SVB Leerink revenue of $625M-$675M. SVB Leerink revenue is a non-GAAP financial measure. See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and our non-GAAP reconciliations at the end of this presentation.

 
Private Banking & Wealth Management: Meaningful integration progress Focused on capturing the ~$400B potential opportunity among current clients1 Grow residential mortgage lending Immediate opportunity to introduce entrepreneurs and executives at our commercial clients to Private Banking Provide differentiated solutions • Private stock solutions • SVB Capital funds and private placements • Trust and family office services 1. Estimated potential “total client position” (“TCP”) through SVB’s current commercial clients based on SVB management analysis (2020). Includes potential wealth management assets, loans and deposits. 2. Reported Total Client Position represents sum of Private Bank assets under management (“AUM”), and loans and deposits as reported in our segment reporting for SVB Private Bank. Completed  Continued high level of service without disruption  Retained key talent and established leadership for all core functions  Began cultural integration, including firmwide townhalls, training and networking  Finalized roadmap for a best-in-class technology stack, with decisions for over 300 systems  Announced 5-year $11.2B Community Benefits Plan to support low- and moderate-income communities In progress (~18-24 months)  Integrating technology systems according to defined roadmap  Unifying product offerings to create consistency and leverage the best capabilities of both organizations  Piloting new team-based client engagement model to deliver holistic advice and solutions  Developing go-to-market strategy – launching new brand and product suite in 1H’22  Developing comprehensive private stock solutions, leveraging our Nasdaq Private Market JV  Recruiting new advisors to support growth plan Q3 2021 Financial Highlights Attract talent • Add capacity to serve clients • Further enhance capabilities and expertise $70B TOTAL CLIENT POSITION vs. $46B Q3’21 TCP ($20B Private Bank AUM, $13B loans and $13B deposits)2 At least 1 PBWM RELATIONSHIP at 50% OF COMMERCIAL CLIENTS ~$700M Q3’21 MORTGAGE ORIGINATIONS Initial driver of revenue synergies 10 9/30/21 YTD WEALTH ADVISOR HIRES + strong hiring pipeline EARLY PERFORMANCE INDICATORS MEDIUM-TERM TARGETS (3+ years) Key integration milestones 14

 
Wealth Advisory Investment Lending Wealth Access digital portal Well-positioned to capture compelling private banking and wealth management opportunity Q3 2021 Financial Highlights 15 • Dedicated advisor supported by a team of specialists • Deep wealth management and innovation economy expertise Trusted advisor and team Seamless onboarding 360o view of financial positions Integrated banking and wealth solutions Personalized financial planning Customized portfolio management 24-7 access and support Mortgages Private stock lending Securities-based loans Specialty commercial SVB Capital access Private placements Brokerage solutions Impact investing HNW/UHNW Family office Tax planning Philanthropy Trust & estate + Bespoke solutions Full product suite Premier private banking and wealth platform Superior client focus Holistic, relationship- based advice and service Comprehensive planning to prepare for complex financial needs resulting from liquidity and life events Exclusive access to networking events, insights and investment opportunities in the innovation economy Tailored solutions to address equity compensation, concentrated stock positions and non-liquid assets Next generation digital platform “Always on” digitally enabled interactions and improved efficiencies Large balance sheet to support clients’ borrowing needs

 
Strategic investments: another channel to expand capabilities to better meet client needs Q3 2021 Financial Highlights 16 2021 Centralized marketplace for trading private company stock Commercial Banking: Enable clients to manage secondary offerings with leading technology platform and global distribution network SVB Private Bank, SVB Capital & SVB Leerink: Provide investor clients more liquidity options and broader access to investment opportunities Marketplace for on-demand executive talent Commercial Banking: Help clients rapidly scale and diversify their leadership teams and boards SVB Private Bank: Provide clients with access to job opportunities within the innovation economy Investment analytics platform for VCs, LPs and other private capital investors Commercial Banking: Provide a powerful solution for our PE and VC clients to gain enhanced insights into their portfolios SVB Capital: Assist SVB Capital team with market benchmarking, streamlined LP reporting and portfolio analytics Commercial insurance provider powered by technology serving high-growth, venture- backed startups Commercial Banking: Connect early and mid- stage clients to Vouch’s tailored commercial insurance solutions to benefit customer retention and risk mitigation Largest global seed investor and accelerator program Commercial Banking: Expand SVB’s early- stage client acquisition channels and support innovative companies in Techstars’ global network Gain sector and market insights in the innovation economy 2020 2019 20182019 Note: Year indicates date of initial investment.

 
Ability to generate sustainable NII 17 1. Net interest income presented on a fully taxable equivalent basis. 2. Represents 9/30/21 YTD NII. 3. 9/30/21 YTD vs. 9/30/20 YTD percentage change. Q3 2021 Financial Highlights 0.4 0.4 0.4 0.4 0.5 0.6 0.7 0.9 1.0 1.2 1.4 1.9 2.1 2.2 2.3 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5 6 10 14 17 19 21 31 39 42 47 53 60 81 146 0 20 40 60 80 100 120 140 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9/30/21 YTD 93% 9/30/21 YTD YoY growth rate in average interest earning assets3 NET INTEREST INCOME1 $ Billions NII Estimated based on FY’21 and preliminary FY’22 outlook NIM Average Fed Funds Rate AVERAGE INTEREST EARNING ASSETS $ Billions Average Cash Average Investment Securities Average Loans Historically, balance sheet growth has offset rates to support NII Growth in interest-earning assets provides foundation to drive future interest income Mid 40s% FY’21 NII growth outlook Mid 30s% Preliminary FY’22 NII growth outlook See page 10 for more information 2

 
$36.0B INTERNATIONAL AVERAGE TOTAL CLIENT FUNDS 12% of total client funds Note: International activity reflects figures for our international operations in the U.K., Europe, Israel, Asia and Canada. This management segment view does not tie to regulatory definitions for foreign exposure. 1. Non-GAAP financial measure. See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and our non-GAAP reconciliations at the end of this presentation. 2. Based on FY’21 outlook. See page 10 for more information. 3. 2017-2020 CAGR. Diversification further enhances growth and profitability Q3 2021 Financial Highlights 18 $1.9 $2.8 $3.9 $5.4 $8.1 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2017 2018 2019 2020 9/30/21 YTD $8.1B INTERNATIONAL AVERAGE LOANS 16% of total loans 7.7 10.4 11.6 15.1 31.7 1.4 2.4 3.0 3.0 4.3 $9.1 $12.8 $14.6 $18.1 $36.0 2017 2018 2019 2020 9/30/21 YTD $33.8 $54.0 $67.0 $75.3 $84.4 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 2017 2018 2019 2020 9/30/21 YTD $84.4M INTERNATIONAL CORE FEE INCOME1 16% of total core fees CORE FEES AND SVB LEERINK REVENUE1 $ Millions WARRANT AND INVESTMENT GAINS NET OF NCI1 $ Millions SVB Leerink Revenue Core Fee Income 642 603 535 252 481 393 379 516 894 1,084 2017 2018 2019 2020 2021 Est. FY’212 9/30/21 YTD 9/30/21 YTD Est. FY’212 Total Deposits OBS Client Funds 35 50 86 334 435 55 89 138 238 491 90 139 224 572 926 2017 2018 2019 2020 9/30/21 YTD Warrant Gains Investment Securities Gains Gains will fluctuate with changes in valuation and market conditions Client acquisition Wealth management Investment banking SVB Capital funds International expansion Digital banking Liquidity solutions FX and payments New products & expertise Investments diversifying revenues

 
Well-positioned for rising rates Q3 2021 Financial Highlights 19 $191B Q3 AVERAGE OBS CLIENT FUNDS Asset sensitive balance sheet… 90% OF Q3 AVERAGE LOANS ARE VARIABLE RATE 67% OF Q3 AVERAGE DEPOSITS ARE NONINTEREST- BEARING …magnified by robust growth… Mid 40s% EXPECTED FY’21 AVERAGE LOAN GROWTH2 Mid 90s% EXPECTED FY’21 AVERAGE DEPOSIT GROWTH2 …and substantial off-balance sheet client funds Proactive interest rate risk management * Equivalent to 9-11 bp increase in client investment fee margin based on Q3’21 average balances. Expect client investment fee margin to increase by 1-2 bps for each subsequent 25 bp increase in short-term rates Majority of excess liquidity invested in 3-5 year duration securities (primarily classified as HTM) $132M REMAINING LOCKED-IN SWAP GAINS3 Positioning securities portfolio to create flexibility and mitigate OCI risk from potential rising long-term rates: $11B FAIR VALUE HEDGES (49% OF AFS PORTFOLIO) $3B TRANSFERRED FROM AFS TO HTM ~$106M MODELED INCREASE IN ANNUALIZED PRE-TAX NII FOR EACH 25 BP INCREASE IN RATES1 ~$3.0-4.0B ESTIMATED SECURITIES PAYDOWNS/QUARTER $33B ACTIVE LOAN FLOORS4 MAINTAINING AFS PORTFOLIO DURATION AT ~2y (HEDGE-ADJUSTED) Still benefitting from strategies to protect against low rates: Note: Average balances represent Q3’21 averages. All other figures as of September 30, 2021. 1. Equivalent to +13.4% NII sensitivity for the expected 12-month 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 Q3’21 Form 10-Q report for more information. 2. See page 10 for more information. 3. Unwound $5B swaps in Q1’20 resulting in $227M pre-tax fair value gains in OCI to be reclassified to loan interest income over ~5 years based on the timing of cash flows from hedged variable-rate loans. 4. 3.24% weighted average floor rate. $202M expected benefit from in-the-money floors based on a weighted average maturity of 1.49 years. ~$195-225M EXPECTED INCREASE IN ANNUALIZED CLIENT INVESTMENT FEES FOR INITIAL 25 BP INCREASE IN RATES*

 
Attractive long-term growth opportunity Unique liquidity franchise Thriving, high- growth markets Robust earnings power Growth investments High-quality balance sheet Proven leadership Strong capital management and ample liquidity Strong credit quality Q3 2021 Financial Highlights 20 * Based on cash, fixed income investment portfolio and Global Fund Banking and Private Bank loan classes of financing receivables as of September 30, 2021. Long-term financial objectives ~15% ROE LOW RATE ENVIRONMENT (0-2.50% Fed Funds Rate) ~10% EPS GROWTH annualized ~20% ROE ~20% EPS GROWTH annualized NORMALIZED RATE ENVIRONMENT (>2.50% Fed Funds Rate) Powerful client funds franchise with low cost of on-balance sheet deposits Innovation is driving economic growth, and digital adoption and activity in healthcare are accelerating • Industry-leading growth and profitability • Diversified revenue streams to drive earnings through rate and economic cycles • Expanding and deepening platform to meet innovation clients’ needs at all stages • Enhancing our systems, infrastructure and processes to support our continued growth 87% of assets in high-quality investments and low credit loss experience lending* Deep bench of proven leaders delivering sustainable growth, supported by strong global team Ability to support growth and manage shifting economic conditions while investing in our business Long track record of strong underwriting and resilient credit performance Industry-leading growth & profitability RISING RATE ENVIRONMENT ~10% EPS GROWTH annualized

 
Q3 2021 Financial Highlights 21 Performance detail and outlook drivers

 
Key external variables to our forecast Q3 2021 Financial Highlights 22 Our guidance requires clarity around certain external variables, including but not limited to: • Primary driver of capital call line demand which has been the largest source of loan growth over the past 7 years PE fundraising and investment • Promotes new company formation which helps support client acquisition • Source of client liquidity which impacts total client funds growth VC fundraising and investment • Ability for companies to exit via public markets or M&A affects VC/PE fundraising and investment • Deal proceeds support client liquidity • Impacts investment banking revenue and value of warrants and investment securities Exit activity • Affects margins and client acquisition Competitive landscape • Affects health of clients which determines credit quality • Level of business activity drives client liquidity and demand for our products and services Economic environment • Performance and volatility of public, private and fixed income markets impact exit activity and market-driven revenues (FX, investment banking revenue and commissions and warrant and investment gains) Capital markets • Directly impacts NIM via lending and reinvestment yields vs. funding costs • Client investment fees move with short-term rates • Affects mortgage and securities prepayment speeds, impacting timing of premium amortization Shape of yield curve • Current administration and Congress will influence economic policy and stimulus, business and market sentiment, global trade relationships, bank regulations and corporate taxes Political environment

 
Continued private markets momentum drove surge in client funds Expect average deposit % growth in the mid 90s for FY’21 / low 40s for FY’22 Q3 2021 Financial Highlights 23 124 133 152 174 19151 61 73 92 110 26 31 37 42 54 201 225 262 308 355 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 AVERAGE DEPOSIT MIX AND PRICING AVERAGE CLIENT FUNDS $ Billions FY’21 and preliminary FY’22 outlook key drivers • Total cost of deposits and share of noninterest-bearing deposits expected to remain steady • Strong average client funds growth, both on and off-balance sheet • Deposit growth may be impacted by: +76% YoY Strong PE/VC investment and public markets activity Increases technology and life science/healthcare clients’ liquidity Expect robust investment and public markets activity in FY’22, but moderating from FY’21’s exceptional levels + Normalizing client spending As business activity recovers – • Average client funds +$47B (+$38B excluding BP deposits) primarily driven by strong VC investment activity • Technology clients drove both on and off-balance sheet growth • Share of noninterest-bearing deposits modestly declined due to inclusion of BP deposits, increasing cost of deposits by 1bp QoQ Q3’21 activity 0.04% 0.04% 0.04% 0.04% 0.05% 66.4% 66.7% 66.2% 68.4% 67.1% 50% 52% 54% 56% 58% 60% 62% 64% 66% 68% 70% 0.00% 0.02% 0.04% 0.06% 0.08% 0.10% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 New client growth Continued strong client acquisition+ Potential for GFB distributions PE/VC fund distributions historically occur at year-end and may impact Q1’22 balances – Off-Balance Sheet Client Funds Noninterest-Bearing Deposits Interest-Bearing Deposits Percent of Noninterest- Bearing Deposits Total Cost of Deposits

 
32.6 41.4 53.5 72.3 93.8 2.14% 1.98% 1.90% 1.57% 1.55% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 11.3 12.7 14.8 16.7 15.9 2.5 3.2 3.4 4.4 5.9 13.8 15.9 18.2 21.1 21.8 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Tax-effected Yield 4.1y 3.7y 4.8y 4.5y 4.5y N/A N/A 4.3y 3.9y 4.0y Portfolio Duration Hedge-adjusted AVERAGE FIXED INCOME INVESTMENT SECURITIES $ Billions FY’21 and preliminary FY’22 key drivers Q3’21 activity Significant securities purchases as deposit inflows continued Q3 2021 Financial Highlights AVERAGE CASH AND EQUIVALENTS $ Billions • Purchased $25.3B securities (1.37% weighted average yield, 4.9y duration) vs. roll-offs of $4.8B at 1.54% • HTM purchases included agency-issued MBS/CMBS, high-quality munis and a small amount of corporate bonds; AFS purchases primarily included USTs • Significant purchases drove decline in average Fed cash balances – still exceeded target due to surge in deposits • Transferred $3.1B of AFS securities to HTM to protect OCI from decreases in AFS fair value resulting from rising rates • Assumed $982M HTM securities from Boston Private acquisition • Focused on maintaining ~2y AFS portfolio duration to mitigate OCI risk while buying 3-5y duration HTM securities to support portfolio yields • Investing excess on-balance sheet liquidity in high-quality securities (agency MBS/CMBS, munis and corporates), primarily classified as HTM • Managing average Fed cash balances to $8-10B target by end of 2021* • Expect average portfolio yield to be ~1.50-1.60% for FY’21 and FY’22: * Actual balances depend on timing of fund flows. 10.0B 11.4B 24.0B 21.2B 25.3BSecurities Purchases Low new purchase yields modestly pressured Q3’21 portfolio yields Outsized deposit growth continued to drive elevated cash balances, despite significant securities purchases in Q3’21 24 High-quality alternative investments Opportunistically buying strong credit-quality munis and corporate bonds to support portfolio yields + Rate protections Maintaining ~2y AFS portfolio duration (hedge-adjusted) ~$11.3B receive floating swaps at 38 bps cost (as of 9/30/21) – Low new purchase yields Expect new purchase yields ~1.45-1.55% Estimated ~$3.0-4.0B paydowns per quarter – Premium amortization expense From paydowns of securities purchased at a premium – Fed Cash Cash in other financial institutions and foreign central banks

 
On vs. off-balance sheet considerations Target range Flexibility Bank tier 1 leverage ratio 7-8% internal target $1.1B SVBFG liquidity as of 9/30/21, a portion of which can be downstreamed to Bank Profitable spread income 75-100 bps minimum target spread between new purchase yields and deposit costs ~1.45-1.55% expected new purchase yields 5 bps cost of deposits enables healthy margins Focused on supporting yields andmitigating OCI risk from potential rising rates Liquidity $8-10B average Fed cash target* ~$3.0-4.0B expected portfolio cash flows per quarter through 2022 $110B borrowing capacity as of 9/30/21 ($5.5B repo, $2.2B Fed Lines, $6.9B FHLB & FRB and $95.8B of unpledged securities) Flexible liquidity management strategy supports strong, profitable growth Q3 2021 Financial Highlights $191B Q3’21 AVERAGE OFF-BALANCE SHEET CLIENT FUNDS Ability to support client funds growth on and off-balance sheet, while optimizing pricing and mix $164B Q3’21 AVERAGE ON-BALANCE SHEET DEPOSITS 40+ LIQUIDITY MANAGEMENT PRODUCTS 25 Continued product development TO BETTER SERVE CLIENTS Robust liquidity solutions to meet clients’ needs * Actual balances depend on timing of fund flows.

 
Portfolio Utilization 18.2 22.1 26.3 29.1 31.9 11.3 11.1 11.8 12.4 12.7 4.3 4.6 5.0 5.2 8.2 1.7 1.9 1.6 1.7 1.8 1.4 2.7 1.8 1.7 1.6 1.4 0.6 37.3 41.5 46.3 49.8 59.3 55.9% 58.6% 58.4% 58.2% 60.1% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 3.80% 3.47%(0.20%) (0.07%) (0.06%) Q2'21 Loan Yield Addition of BP loans and Purchase Accounting Loan Fees (PPP and Prepays) Loan Mix and Lower Yields Q3'21 Loan Yield AVERAGE LOANS $ Billions Robust PE/VC investment activity continued to drive strong organic loan growth Expect average loan % growth in the mid 40s for FY’21 / mid 20s for FY’22 Q3 2021 Financial Highlights 26 Global Fund Banking Private Bank PPP Premium Wine and Other Tech and Life Science/HC AVERAGE LOAN YIELD1 • Loan yields expected to be impacted by: • Average loans +$9B due to addition of BP loans (+$7B) and strong GFB lending activity (+$3B), partially offset by PPP forgiveness • Healthy Private Bank mortgage growth even as refinance activity moderated with rising rates • Strong Tech and Life Science/Healthcare originations, partially offset by paydowns as client fundraising activity remained robust • Decline in loan yields driven primarily by addition of lower-yielding BP loans, $20M purchase accounting amortization of fair value mark ups on BP loans, decreasingPPP forgiveness and early payoffs, continued growth in our GFB portfolio and loan yield compression (see page 27) • Loan growth may be impacted by: Note: Our loan portfolio segments and classes of financing receivables have been revised as a result of the Boston Private acquisition and prior periods have been reclassified to conform with current period presentations. See “Portfolio Segments and Classes of Financing Receivables” in our Q3’21 Earning Release for more information. 1. SBA PPP contributed $9M to Q3’21 NII, including $7M of loan fees. ~$450M PPP loans were forgiven in Q3. 2. Unwound $5B swaps in Q1’20 resulting in $227M pre-tax fair value gains in OCI to be reclassified to loan interest income over ~5 years based on the timing of cash flows from hedged variable-rate loans. 3. 3.24% weighted average floor rate. $202M expected benefit from in-the-money floors based on a weighted average maturity of 1.49 years. Q3’21 activity FY’21 and preliminary FY’22 outlook key drivers Strong Private Bank mortgage growth Enhanced by acquisition of Boston Private+ Strong PE/VC investment activity Supports GFB capital call line growth Expect robust PE/VC investment activity in FY’22, but moderating from FY’21’s exceptional levels + Robust tech and life science/HC pipelines + expansion initiatives Strong pipelines + opportunity to grow project finance (clean energy), recurring revenue, fintech warehouse and sponsor-led buyout loans expected to offset paydowns from abundant liquidity + Shifting loan mix Growth driven by lower yielding GFB and Private Bank mortgages– Spread compression Increasing competition as economy recovers– Rate protections $132M remaining locked-in swap gains as of 9/30/212 $33B active loan floors as of 9/30/213, however loan renewals may pressure ability to maintain floor rates + Boston Private purchase accounting Amortization of fair value mark ups on loans – CRE Other C&I Q3 swap gains2 $16M Q3 average active loan floors $32B

 
735 859 (17) (4) 85 34 22 4 Q2'21 NII Cash and Fixed Income Portfolio Growth Boston Private Total NII Impact Organic Loan Growth Lower Loan Fees and Yields Cost of Funding Additional Day Q3'21 NII Q3’21 activity FY’21 and preliminary FY’22 outlook key drivers NET INTEREST MARGIN NET INTEREST INCOME1 $ Millions Exceptional balance sheet growth drove strong NII despite low rates Expect NII % growth in the mid 40s for FY’21 / mid 30s for FY’221 and NIM between 2.00%-2.10% for FY’21 / 1.90%-2.00% for FY’22 Q3 2021 Financial Highlights 27 • Q4’21 NII expected to be between $920M - $935M and Q4’21 NIM to be between 1.92%-1.95% • NII and NIM expected to be impacted by: 1. NII is presented on a fully taxable equivalent basis, while NII guidance excludes fully taxable equivalent adjustments. SBA PPP contributed $9M to Q3’21 NII, including $7M of loan fees. 2. Unwound $5B swaps in Q1’20 resulting in $227M pre-tax fair value gains in OCI to be reclassified to loan interest income over ~5 years based on the timing of cash flows from hedged variable-rate loans. $132M locked-in gains remain as of September 30, 2021. 3. 3.24% weighted average floor rate. $202M expected benefit from in-the-money floors based on a weighted average maturity of 1.49 years. 2.06% 1.95% (0.05%) (0.03%) (0.01%) (0.01%) (0.01%) Q2'21 NIM Fixed Income Portfolio Growth at Lower Yields Boston Private Total NIM Impact Loan Mix and Lower Loan Yields Loan Fees Cost of Funding Q3'21 NIM Low new purchase yields Expect new purchase yields ~1.45-1.55% Estimated ~$3.0-4.0B paydowns per quarter – Reduction in average Fed cash balances To $8-10B target by end of 2021 (actual balances depend on timing of fund flows) + Spread compression Increasing competition as economic recovery advances– Balance sheet growth (+ for NII, – for NIM) Driven by strong client liquidity + - Rate protections (+ for loan yields, – for securities yields) ~4 bps of NIM protection in 2021 (~3 bps in 2022) from locked-in swap gains2 $33B active loan floors as of 9/30/213, however loan renewals may pressure ability to maintain floor rates $11.3B receive floating swaps on AFS portfolio at 38 bps cost (as of 9/30/21) + - Boston Private purchase accounting Amortization of fair value mark ups on loans– NII +17% QoQ despite low rates Shifting loan mix Growth driven by lower yielding GFB and Private Bank mortgages– NIM impacted by 1) significant securities purchases due to surging deposits and 2) addition of lower-yielding BP loans and purchase accounting amortization of fair value mark ups on BP loans +$56M from addition of BP loans ($20M) from BP purchase accounting Primarily GFB Primarily driven by lower PPP forgiveness, lower early payoffs and loan yield compression

 
(5) 23 18 15 10 23 2 (3) 7 10 81 1 7 2 20 (16) 15 27 1 4 46 (82) (78) (62) (7) (70) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 $(52) $(38) $19 $35 $21 0.26% 0.09% 0.79%2 0.10% 0.07% 0.28% 0.23% 0.20% 0.16% 0.19% Stable credit trends and enhanced reserve modeling drove lower provision despite day 1 provision for BP; Expect FY’21 and FY’22 NCOs to be between 20-40 bps PROVISION FOR CREDITLOSSES COMPONENTS $ Millions Non-performing loans Loan composition Model Assumptions Unfunded Q3’21 activity FY’21 and FY’22 preliminary outlook key drivers Non-performing loans4 Net charge-offs3 • Changes in loan mix and model economic scenarios could drive volatility in provision: Moody’s September economic scenarios • Credit quality could be impacted by: Q3 2021 Financial Highlights 28 1. See page 30 for more information on model enhancements and impacts. 2. Q1’21 included $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%. 3. Net loan charge-offs as a percentage of average total loans (annualized). 4. Non-performing loans as a percentage of period-end total loans. 40% baseline 30% downside 30% upside • Provision reflects stable credit trends; a $69M performing reserve release from enhanced reserve modeling1; a $46M day 1 provision on non- purchased credit deteriorated (“PCD”) loans and unfunded commitments acquired from BP; a $27M increase in unfunded reserves due to commitment growth, changes in portfolio composition and model enhancements1; and a $10M increase in performing reserves from loan growth • Low gross charge-offs ($19M) driven primarily by Investor Dependent portfolio, and strong recoveries ($8M) • NPLs increased $35M to $117M (0.19% of EOP loans) and criticized increased $0.5B to $1.6B (2.65% of EOP loans); BP contributed $31M NPLs and $452M criticized Vaccine distributions and re-openings Support business activity of our clients; watching COVID-19 variants and continued spread + Continued investor support Robust VC investment activity and dry powder + Improved risk profile of loan portfolio Early Stage –most vulnerable loan class that historically has produced the most losses – now only 3% of loans; 69% of loans in low credit loss experience classes (GFB and Private Bank) + Net credit losses HTM Securities 2 (5) BP non-PCD & unfunded commitments Provision for credit losses – Larger Growth Stage and Innovation C&I loan sizes May introduce greater volatility in credit quality 1 Increased CRE exposure from acquired Boston Private loans Commercial real estate more impacted by restrictions to reduce spread of COVID-19 and transition to hybrid work environment; mitigated by limited overall exposure (only 4% of total loans) and ample reserves –

 
Global Fund Banking ("GFB") 55% Early Stage ID 3% Growth Stage ID 6% CFD - SLBO 3% Innovation C&I 10% PPP 1% CRE 4% Other C&I 2% Premium Wine and Other 2% Private Bank 14% Global Fund Banking ("GFB") 15% Early Stage ID 12% Growth Stage ID 22% CFD - SLBO 10% Innovation C&I 17% CRE 10% Other C&I 3% Premium Wine and Other 3% Private Bank 8% ID = Investor Dependent | CFD = Cash Flow Dependent | SLBO = Sponsor-led buyout | C&I = Commercial & Industrial | PPP= Paycheck Protection Program | CRE = Commercial Real Estate 69% of loans in low credit loss experience Global Fund Banking and Private Bank classes TOTAL LOANS $61B at 9/30/21 Low Credit Loss Experience Classes Technology & Life Science /Healthcare Q3 2021 Financial Highlights 29 * Our loan portfolio segments and classes of financing receivables have been revised as a result of the Boston Private acquisition. See “Portfolio Segments and Classes of Financing Receivables” in our Q3’21 Earning Release and the Appendix in this presentation for more information. ALLOWANCE FOR CREDIT LOSSES FOR LOANS $398M at 9/30/21 New classes of financing receivables to accommodate Boston Private loans* • CRE and Other C&I: New classes resulting from the Boston Private acquisition • Growth Stage ID: Combines former Mid Stage and Later Stage segments in our historical disclosures • Innovation C&I: Combines former CFD - Other and Balance Sheet Dependent segments in our historical disclosures • Premium Wine and Other: Combines former Premium Wine and Other segments in our historical disclosures

 
$ Millions ACL 6/30/21 (%) ACL 6/30/21 Day 1 Allowance on Acquired Loans1 Portfolio Changes Model Assumptions ACL 9/30/21 ACL 9/30/21 (%) Early Stage Investor Dependent 3.54% 55 - (4) (2) 49 3.15% Growth Stage Investor Dependent 2.72% 102 - - (13) 89 2.32% Cash Flow Dep: Sponsor Led Buyout 2.24% 43 - - (2) 41 2.15% Innovation C&I 1.33% 77 - 2 (11) 68 1.14% Global Fund Banking 0.21% 66 - 6 (13) 59 0.17% Private Bank 0.88% 47 9 - (25) 31 0.37% Premium Wine and Other 0.64% 6 2 2 (1) 9 0.73% Other C&I N/A N/A 13 - (1) 12 1.05% Commercial Real Estate N/A N/A 42 - (2) 40 1.48% PPP 0.0% - - - - - 0.0% ACL for loans 0.78% 396 66 6 (70) 398 0.65% ACL for unfunded credit commitments 0.33% 120 2 17 10 149 0.37% ACL for loans and unfunded credit commitments 0.59%2 516 68 23 (60) 547 0.54%2 Performing reserve release from enhanced modeling and improved loan mix offset day 1 allowance on BP loans, driving lower ACL % of total loans ALLOWANCE FOR CREDIT LOSSES FOR LOANS AND UNFUNDED CREDIT COMMITMENTS $ Millions T e ch & L S / H C Q3 2021 Financial Highlights MODEL ENHANCEMENTS & IMPACTS • Leveraged 2 years of additional portfolio data to refine and enhance assumptions • More granular, product-specific prepayment models 30 Note: Our loan portfolio segments and classes of financing receivables have been revised as a result of the Boston Private acquisition and prior periods have been reclassified to conform with current period presentations. See “Portfolio Segments and Classes of Financing Receivables” in our Q3’21 Earning Release for more information. 1. Only the $46M for the non-purchase credit deteriorated (“PCD”) loans and unfunded commitments acquired from Boston Private is included in Q3’21’s provision for loan losses. 2. Weighted average ACL ratio for loans outstanding and unfunded credit commitments. 120 149 396 398 516 547 Changes in loan composition/growth Changing credit quality Charge-offs/ recoveries Enhanced reserve modeling (-$69M for funded, +$10M for unfunded) Economic scenarios (-$1M for funded) $44M for BP non-PCD loans $22M for BP PCD loans $2M for BP unfunded commitments 66 (70) 2 17 106 Performing reserve releases for funded loans primarily driven by faster prepayment assumptions and strong performance over past 2 years, despite stressed economic environment Unfunded reserve build due to increase in expected future commitments for milestone tranches of Investor Dependent loans, which are tied to company performance or additional funding rounds ACL for loans ACL for unfunded credit commitments Economic scenarios: Moody’s Sept. forecasts: 40% baseline (~5% peak unemployment in Q3’21 and ~5% 1 year GDP growth), 30% downside, 30% upside

 
Higher client investment fee margin and card activity drove robust organic core fees growth; Expect core fees % growth in the low 20s for FY’21 / mid 20s for FY’22 Q3 2021 Financial Highlights CORE FEE INCOME1 $ Millions Q3’21 activity • Core fees +19% QoQ (+6% excluding BP WM&T fees) • Improved client investment fee margin (from 3 bps to 4 bps) resulting from the Fed’s increase in overnight repurchase rates in June, as well as continued growth in balances, drove higher client investment fees • New clients, relationship expansion and higher utilization drove card fees +10% • Continued strong FX fees as PE investment activity remained robust • Core fees to be impacted by: 31 1. Non-GAAP financial measure. See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and our non- GAAP reconciliations at the end of this presentation. 2. Represents the Private Bank’s client investment account balances. As a result of the completion of the Boston Private acquisition on July 1, 2021, Private Bank assets under management (“AUM”) are no longer reported in off- balance sheet client investment funds beginning in Q3’21. FY’21 and preliminary FY’22 outlook key drivers Recovering business activity Gradual improvement, though watching pace of vaccine distributions, COVID-19 spread and shutdowns + New client growth and deepening engagement From investments in client acquisition, new products and client experience + Enhanced wealth management offering Full-year impact of inclusion of Boston Private + launching new PBWM brand and product suite 1H’22 + 12 12 13 13 13 14 20 16 18 21 22 23 25 28 29 32 25 20 15 20 44 51 57 67 65 23 25 28 31 34 22 0 0 0 0 0 0 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Lending Related Fees Deposit Service Charges Client Investment Fees Credit Card Fees LOC Fees FX Fees Wealth Management & Trust Fees (“WM&T”) PRIVATE BANK ASSETS UNDER MANAGEMENT2 $ Millions 1,667 19,565 (31) (51) 17,980 Q2'21 AUM Assets acquired from Boston Private Net flows Market returns Q3'21 AUM Improving client investment fees As balances increase+ Higher lending related fees Driven by higher loan originations, syndications and collaboration between Commercial Bank and SVB Leerink on sponsor-led buyout lendingopportunities + Strong PE investment activity Supports FX fee growth+ 147 156 159 172 204

 
Continued momentum from SVB Leerink Expect SVB Leerink revenue between $525-550M for FY’21 / $625-675M for FY’22 32 Q3’21 activity FY’21 and preliminary FY’22 outlook key drivers SVB LEERINK REVENUE1 $ Millions • Shifting conditions may create volatility for market-sensitive revenues: • SVB Leerink continued to capitalize on strong public markets: 14 book-run transactions in Q3 ($3.2B in aggregate deal value) • Announced new technology investment banking expansion in September Commissions Investment Banking $78M $131M $136M $99M $142M SVB Leerink expenses Q3 2021 Financial Highlights 1. Non-GAAP financial measure. See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and our non-GAAP reconciliations at the end of this presentation. 2. Included in preliminary FY’22 outlook for SVB Leerink revenue of $625M-$675M. 92 133 142 103 90 16 18 24 17 17 108 151 166 120 107 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 New hires and expertise Recent hires to grow technology, healthcare services and healthtech investment banking expected to add $150-200M of revenues in 20222 Continue to add talent to deepen and expand capabilities + Strengthening collaboration Between Commercial Bank and SVB Leerink+ Strong public markets activity Drives investment banking revenues Expect robust public markets activity in FY’22, but moderating from FY’21’s exceptional levels + SVB Leerink expands our solutions for clients Equity Capital Markets Convertible Securities Alternative Equities Institutional Equities Equity Research M&A Advisory MEDACorp Leveraged Finance Private Placements Structured Finance TECHNOLOGYLIFE SCIENCES/HEALTHCARE NEW ENTERPRISE SOFTWARE TOOLS & DIAGNOSTICS HEALTHCARE SERVICES MEDICAL DEVICES CONSUMER INTERNET, COMMERCE & MARKETING DIGITAL INFRA & TECH SERVICES BIOPHARMA EDUCATION TECHNOLOGY INDUSTRIAL TECHNOLOGY DIGITAL HEALTH & HEALTHTECH Coming soon FINTECH

 
Strong warrant and investment gains as exits and fundraising remained robust Gains will fluctuate with changes in valuation and market conditions Q3 2021 Financial Highlights Warrant gains Investment Securities gains WARRANT AND INVESTMENT GAINS NET OF NCI1 $ Millions 162 104 142 192 101 54 144 222 122 147 216 248 364 314 248 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 818 973 1,015 948 1,217 202 203 244 266 274 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Warrants Non-marketable and other equity securities2 33 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 Q3 2021 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. Q3’21 activity • Robust exit and fundraising activity drove warrant exercises and improved valuations • Warrant gains included $91M gains on exercises driven primarily by IPO activity during the quarter and $57M net valuation increases from private fundraising rounds and potential exit activity • Investment gains primarily driven by unrealized valuation increases related to SVB Capital and SVB Leerink funds and strategic investments, partially offset by decreases in public equity security valuations • Shifting conditions may create volatility for warrant and investment gains – gains (losses) are client-specific and may not always correlate with broader market trends: FY’21 and preliminary FY’22 key drivers WARRANTS & NON-MARKETABLE AND OTHER EQUITY SECURITIES2 $ Millions Strong PE/VC investment activity Improves valuations Expect robust investment activity in FY’22, but moderating from FY’21’s exceptional levels + Robust exit markets Impacts ability to realize gains Expect robust exits in FY’22, but moderating from FY’21’s exceptional levels + Market volatility Impacts valuations, PE/VC investment and exit activity – New client growth Opportunity to build warrant portfolio+ Normalizing gains After multiple quarters of exceptional gains –

 
Net warrant gains more than offset Early Stage charge-offs over time and offer meaningful earnings support Q3 2021 Financial Highlights 34 WARRANT GAINS NET OF EARLY STAGE LOSSES $ Millions -3 8 3 3 22 23 11 0 7 37 19 46 71 71 38 55 89 138 237 491 -13 -1 0 -2 -7 -10 -16 -58 -23 -1 -21 -26 -30 -12 -45 -35 -28 -23 -27 -26 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9/30/21 YTD Net Gains on Equity Warrant Assets Cumulative net gains (2002-9/30/21 YTD warrant gains less Early Stage NCOs) Early Stage NCOs $965M

 
Core expense growth Private Banking & Wealth Management SVB Leerink Employee enablement & risk management Client experience & revenue growth initiatives ~ See on page 12 Q3’21 activity 327 416 445 425 548 67 77 81 97 104 31 42 33 37 54 2 4 4 3 6 19 45 18 17 25 19 83 45 81 55 55 59 491 665 636 653 879 45.7% 54.8% 45.3% 43.9% 57.7% 0 100 200 300 400 500 600 700 800 900 1000 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 NONINTEREST EXPENSES $ Millions Higher incentives from outstanding performance caused Q3’21 expenses to exceed guidance; Expect noninterest expense % growth excluding merger-related charges in the low 40s for FY’21 / low 20s for FY’22 4,216 4,419 4,601 4,808 6,024 GAAP efficiency ratio* Other Occupancy BD&T Premises and Equipment Professional Services Compensation and benefits Average FTEs Merger-related charges BREAKDOWN OF FY’22 NONINTEREST EXPENSE GROWTH • Revised FY’21 outlook reflects higher incentive compensation from improved SVB Leerink and firmwide performance • Outstanding performance, strong growth outlook and compelling markets allow us to further accelerate investments in strategic priorities in 2022 to extend our leadership position: Note: Outlook excludes merger-related charges associated with the Boston Private acquisition. Estimate ~$25M pretax merger-related charges in Q4’21 and ~$40M spread relatively evenly in FY’22. * Included in the GAAP efficiency ratio for Q4’20: $29M real estate expenses and $20M SBA PPP donation; for Q2’21: $19M merger-related charges; and for Q3’21: $83M merger-related charges. Q3 2021 Financial Highlights 35 • QoQ increase in noninterest expenses driven primarily by 1) merger-related charges; 2) inclusion of BP operating expenses; and 3) higher compensation expense due to outstanding performance and SVB Leerink’s new technology investment banking hires • Q3 noninterest expenses excluding merger-related charges exceeded guidance due to higher incentive compensation from stronger-than-forecast SVB Leerink and firmwide performance * * * FY’21 and preliminary FY’22 outlook key drivers Expect FY’22 noninterest expense growth in the low 20s % excluding merger-related charges accelerated investments in 2022 FY’22 expenses FY’21 expenses Continued hiring & FY impact of 2021 hires FY impact of BP expenses PBWM strategy High single digits % Mid single digits % High single digits % In line with historical core expense growth Data Cyber Agile nCino Mobile & collab Digital Strategic investments Talent Client acquisition New products Product penetration

 
Summary Q3 2021 Financial Highlights 36 Thriving markets Innovation is driving economic growth, and digital adoption and activity in healthcare are accelerating Substantial PE/VC dry powder and strong demand for alternative assets to fuel long-term liquidity growth Strong outlook Raised FY’21 growth outlook again and expect robust growth to continue in 2022 Exceptional balance sheet growth to date provides foundation to generate strong future NII Accelerating growth investments Outstanding performance and strong outlook enable us to invest NOW to our extend leadership position in the fastest-growing market Well-positioned to drive long-term scalable growth Robust earnings power and diversified business model, enhanced by our investments, will deliver long-term scalable growth Coiled-spring potential of eventual rate increases as economy improves Executing on our vision Consistent progress and bold steps to advance and expand our platform, including integrating Boston Private and building out a full technology investment bank

 
Appendix Q3 2021 Financial Highlights 37

 
38 For nearly 40 years, we have helped innovators, enterprises and their investors move bold ideas forward, fast. U.S. venture-backed technology and healthcare IPOs 9/30/21 YTD U.S. venture-backed technology and life science companies ~50% 73%60 Corp Fin Revenue >$75M Accelerator (Early Stage) Revenue <$5M Growth Revenue $5M–$75M Investors Private Equity Venture Capital Individuals Influencers: Entrepreneurs, Investors, Executives Technology & Life Sciences/Healthcare Our mission is to increase clients’ probability of success. We bank: The bank of the global innovation economy Q3 2021 Financial Highlights

 
Differentiated business model 39 PRIVATE EQUITY ANGEL INVESTORS MANAGEMENT TEAMS VENTURE CAPITAL CAPITAL MARKETS CORPORATE VENTURING GOVERNMENT R&D UNIVERSITIES ENTREPRENEURS SERVICE PROVIDERS At the center of the innovation ecosystem PRIVATE BANKING & WEALTH MANAGEMENT GLOBAL COMMERCIAL BANKING INVESTMENT SOLUTIONS FUNDS MANAGEMENT RESEARCH & INSIGHTS INVESTMENT BANKING Deep sector expertise Comprehensive solutions Unparalleled access, connections and insights to make NEXT happen NOW Q3 2021 Financial Highlights LIFE SCIENCE & HEALTHCARE SOFTWARE & INTERNET PREMIUM WINE BANKING INVESTORS CLIMATE TECHNOLOGY & SUSTAINABILITY FINTECH HARDWARE & FRONTIER TECH

 
0.51% 0.34% 0.32% 0.23% 0.19% 0.27% 0.22% 0.24% 0.20% 0.29% 2017 2018 2019 2020 9/30/21 YTD 21.2 25.6 29.9 37.3 51.8 2017 2018 2019 2020 9/30/21 YTD 1.4 1.9 2.1 2.2 2.3 3.05% 3.57% 3.51% 2.67% 2.08% -2% -1% 0% 1% 2% 3% 4% $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2017 2018 2019 2020 9/30/21 YTD Key performance indicators Q3 2021 Financial Highlights AVERAGE TOTAL LOANS $ Billions AVERAGE TOTAL CLIENT FUNDS $ Billions CORE FEES AND SVB LEERINK REVENUE2 $ Millions NET CHARGE-OFFS AND NON-PERFORMING LOANS NET INTEREST INCOME AND NIM $ Billions Net Interest Margin Net Interest Income1 Average Client Investment Funds Average Deposits Core Fee Income NPLs3 51 75 92 117 172 43 48 55 75 136 94 123 147 192 309 2017 2018 2019 2020 9/30/21 YTD 642 603 535 252 481 393 379 516 894 1,084 928 2017 2018 2019 2020 9/30/21 YTD 40 1. Net interest income presented on a fully taxable equivalent basis. 2. Non-GAAP financial measure. See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and our non-GAAP reconciliations at the end of this presentation. 3. Non-performing loans as a percentage of period-end total loans. 4. Net loan charge-offs as a percentage of average total loans. $9.20 $18.11 $21.73 $22.87 $25.16 12.4% 20.6% 20.0% 16.8% 19.4% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 2017 2018 2019 2020 9/30/21 YTD ROE and EPS Diluted EPS Return on Equity Less Q1’21 $80M GFB potential fraud incident 0.09% SVB Leerink Revenue (Investment Banking Revenue and Commissions) NCOs4

 
28% 13% 10% 3% 21% 16% 8% 1% 22% 33% 24% 12% 2% 7% Strong liquidity franchise Uniquely positioned to drive balance sheet growth On and off- balance sheet liquidity solutions1 2 Diversified sources of liquidity from high-growth markets 3 Low cost deposits 40+ liquidity management products to meet clients’ needs and optimize pricing and mix 67% of total Q3’21 average deposits are noninterest-bearing $164B $191B ON-BALANCE SHEET DEPOSITS OFF-BALANCE SHEET CLIENT FUNDS 5 bps 9 bps SVB TOP 50 BANKS3 $355B TOTAL CLIENT FUNDS Early Stage Life Science/ Healthcare Early Stage Technology Private Bank International2 Life Science/ Healthcare Technology Other U.S. Global Fund Banking OBS CLIENT FUNDS CLIENT NICHE1: Q3 2021 Financial Highlights 41 1. As of September 30, 2021. Represents management view of client niches. 2. International balances do not tie to regulatory definitions for foreign exposure. Includes clients across all client niches and life stages, with International Global Fund Banking representing 3% of total client funds. 3. Source: S&P Global Market Intelligence average for 19 of the top 50 US banks by asset size as of October 20, 2021. DEPOSITSQ3’21 AVERAGE BALANCES Q3’21 AVERAGE COST OF DEPOSITS

 
PERIOD-END ASSETS $ Billions PERIOD-END LIABILITIES $ Billions 46.9 51.7 64.4 107.1 176.3 $ $20 $40 $60 $80 $100 $120 $140 $160 $180 2017 2018 2019 2020 9/30/21 51.2 56.9 71.0 115.5 191.0 $ $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2017 2018 2019 2020 9/30/21 High-quality balance sheet growth driven by deposits Q3 2021 Financial Highlights Noninterest- bearing Deposits Borrowings Interest-bearing Deposits Other Liabilities 42 87% of assets in high-quality investments and low credit loss experience lending* Noninterest-bearing deposits 65% of total liabilities * Based on cash, fixed income investment portfolio and Global Fund Banking and Private Bank loan classes of financing receivables as of September 30, 2021. Net Loans Other Assets Non-marketable Securities (primarily VC & LIHTC investments) Held-to Maturity Securities Available-for- Sale Securities Cash and Cash Equivalents

 
PERIOD-END AVAILABLE- FOR-SALE SECURITIES $ Billions PERIOD-END HELD-TO- MATURITY SECURITIES $ Billions High-quality and liquid investment portfolio Q3 2021 Financial Highlights 43 Municipal bonds and notes U.S. agency debentures Agency-issued commercial mortgage-backed securities Agency-issued collateralized mortgage obligations – variable rate U.S. Treasury securities Agency-issued collateralized mortgage obligations – fixed rate Agency-issued residential mortgage-backed securities 11.1 7.8 14.0 30.9 23.0 $ $ $ $ $ $ $ $ $ $ 2017 2018 2019 2020 9/30/21 12.7 15.5 13.8 16.6 82.4 $ 2017 2018 2019 2020 9/30/21 Opportunistically buying strong credit-quality munis and corporate bonds to support portfolio yields Equity securities* U.S. Treasuries and agency-backed securities make up 93% of fixed income portfolio Corporate bonds * Equity securities in public companies are reported in available-for-sale securities in 2017. Upon the adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on January 1, 2018, these equity securities are reported in non-marketable and other equity securities. Managing for flexibility and positioning for higher rates (maintaining ~2y hedge-adjusted AFS portfolio duration)

 
Improved risk profile, with loan growth driven by lowest risk loan classes Q3 2021 Financial Highlights Early Stage ID % of total loans Other C&I Technology and Life Science/Healthcare Premium Wine and Other Private Bank Global Fund Banking PERIOD-END TOTAL LOANS $ Billions Early Stage Investor Dependent (“ID”) loans, our highest risk loan class, now only 3% of total loans, down from 11% in 2009 and 30% in 2000 44 Note: Our loan portfolio segments and classes of financing receivables have been revised as a result of the Boston Private acquisition and prior periods have been reclassified to conform with current period presentations. See “Portfolio Segments and Classes of Financing Receivables” in our Q3’21 Earning Release for more information. 69% of loans in Global Fund Banking and Private Bank, classes with lowest historical credit losses CRE PPP 4.5 5.5 7.0 8.9 10.9 14.4 16.7 19.9 23.0 28.2 32.9 45.2 61.5 11% 10% 8% 9% 9% 8% 6% 6% 6% 6% 5% 3% 3% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9/30/21

 
Long history of strong, resilient credit Q3 2021 Financial Highlights 45 1. Non-performing loans as a percentage of period-end total loans. 2. Net loan charge-offs as a percentage of average total loans. 3. Pullback in VC investment. We’ve successfully navigated economic cycles before and our risk profile has improved 1.07% 1.03% 0.97% 0.62% 0.64% 0.26% 0.31% 0.18% 1.57% 1.15% 0.71% 0.52% 0.42% 0.47% 0.27% 0.73% 0.59% 0.51% 0.34% 0.32% 0.23% 0.19% 3.32% 1.02% 0.25% -0.08% 0.10% 0.04% 0.14% 0.35% 0.87% 2.64% 0.77% -0.02% 0.31% 0.33% 0.32% 0.30% 0.46% 0.27% 0.22% 0.24% 0.20% 0.29% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9/30/21 YTD NON-PERFORMING LOANS & NET CHARGE-OFFS IMPROVED LOAN MIX % of period- end total loans NCOs2NPLs1 Global Financial CrisisDotcom Bubble Crash 2009 11% Early Stage 30% GFB + Private Bank Q3’21 3% Early Stage 69% GFB + Private Bank 2000 30% Early Stage 5% GFB + Private Bank COVID-19 Pandemic Less Q1’21 $80M GFB potential fraud incident VC Recalibration3 0.09%

 
BY INDUSTRY BY INVESTMENT STYLE Low credit risk capital call lines of credit Q3 2021 Financial Highlights 46 22% 21% 13% 13% 8% 5% 18% Debt Buyout Growth Fund of Funds VC funds Other Real Estate Global Fund Banking portfolio2Global Fund Banking capital call lending Short-term lines of credit used by PE and VC funds to support investment activity prior to the receipt of Limited Partner capital contributions of total loans54%1 38% 14%8% 5% 6% 12% 4% 1% 2% 3% 7% Life Sciences Industrial Other Consumer Debt Technology Real Estate FinTech Natural Resources Infrastructure Energy LIMITED PARTNER COMMITMENTS and robust secondary markets VALUE OF FUND INVESTMENTS with solid asset coverage PE Funds Strong sources of repayment 1. Capital call lines represent 98% of GFB portfolio. 2. Based on total GFB loan commitments (funded + unfunded) as of September 30, 2021. Largest driver of loan growth over past 7 years; strong underwriting and well-diversified Q1’21 potential fraud loss is an isolated event in our ~30 years of capital call lending

 
Supporting innovation around the world Q3 2021 Financial Highlights 47 9/30/21 YTD VC investment by market*  SVB Financial Group’s offices  SVB Financial Group’s international banking network $271B AMERICAS $94B EMEA $135B APAC * As of September 30, 2021. Source: PitchBook. 47 Expanding our platform globally Israel Tel Aviv Business development 2008 U.K. 2004 China 2005 Shanghai Hong Kong (2009) Beijing (2010) Business development London Full-service branch (2012) China Joint Venture 2012 SPD Silicon Valley Bank (JV) Shanghai Additional JV branches Beijing (2017) Shenzhen (2018) Europe 2016 Ireland (2016) Business development Germany (2018) Lending branch Denmark (2019) Business development Canada 2019 Toronto (2019) Lending branch Vancouver (2020) Business Development Montréal (2021) Business Development

 
12.4% 20.6% 20.0% 16.8% 19.4% 9.8% 12.8% 11.8% 8.3% 13.2% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2017 2018 2019 2020 9/30/21 YTD Industry-leading performance Q3 2021 Financial Highlights 48 Strong return on equity Strong total shareholder return RETURN ON EQUITY 1/1/16 7/1/16 1/1/17 7/1/17 1/1/18 7/1/18 1/1/19 7/1/19 1/1/20 7/1/20 1/1/21 7/1/21 SVB 5.4x BKX 1.8x S&P 500 2.1x TOTAL SHAREHOLDER RETURN3 1/1/16-9/30/21 1. Source: S&P Global Market Intelligence. “Peers” refers to peer group as reported in our Proxy Statement for each year and is subject to change on an annual basis. 2. 9/30/21 YTD represents annualized ROE. 9/30/21 YTD peer ROE includes 7 of 15 peers as of October 20, 2021. 3. Cumulative total return on $100 invested on 1/1/16 in stock or index. Includes reinvestment of dividends. SVB Peer Average1 9/30/21 2

 
Women 33% Men 67% Women 36% Men 63% 1% Women 45% Men 55% 4% 4% 6% 8% 25% 52% 1% 2% 2% 5% 7% 20%64% 8% 92% Increasing diversity, equity and inclusion (“DEI”) at SVB and across the innovation economy We keep LEARNING & IMPROVING. We start with EMPATHY for others. We speak & act with INTEGRITY. We take RESPONSIBILITY. We embrace DIVERSEperspectives. Embracing diverse perspectives and fostering a culture of belonging Senior LeadersTotal Workforce Board Members OUR VALUES DIVERSITY AT SVB1 Native Hawaiian/Other Pacific Islander American Indian/Alaska Native Not disclosed White Asian Hispanic/Latinx Black/African American Two or more races MULTIPRONGED APPROACH Chief Diversity Officer & executive-led DEI Steering Committee Full-time Diversity Recruiting Director Employee resource groups Employee awareness programs, regular training & education Leadership development Fair pay analysis Hiring outreach programs, university scholarships & strategic partnerships Goal: Reach senior leadership gender parity 50/50 by 2030 Goal: Increase underrepresented individuals2 in senior leadership by 25+% by 2025 Note: Refer to www.svb.com/living-our-values/inclusion-diversity for more information, including EEO data. Website content/links are not a part of this presentation. 1. As of June 30, 2021. We report demographic metrics using racial categories defined by the U.S. Equal Employment Opportunity Commission. Race & ethnicity figures represent U.S. employees only, as regulatory requirements governing data collection and privacy preclude comprehensive data collection in our international offices. We are exploring how we can actively track and share data on our global workforce. Senior leadership includes ExecutiveCommittee (includes our executive officers) and leaders from certain top levels of SVB’s two highest bands of management. American Indian/Alaska Native does not appear on the charts since they comprise less than 1%. Not disclosed represents individuals who did not choose to disclose gender, race & ethnicity data. 2. Includes groups that have been historically underrepresented in the innovation economy and financial services industry (Black/African American, Hispanic/Latinx and Women). Our signature program to increase funding for startups founded by women, Black, Latinx or other underrepresented groups and to advance diversity and gender parity in leadership of innovation companies Championing causes that impact access to and diversity in the innovation economy ACCESS TO INNOVATION Q3 2021 Financial Highlights 49 Gender (global) Race & Ethnicity (U.S.) $1.0M Donated to causes supporting gender parity in innovation $3.1M Support for diverse, emerging talent in innovation 34 Partner organizations focused on furthering DEI in innovation $20M Donated SBA PPP fees (net of costs incurred) to diversity and community efforts (donations will be distributed by the SVB Foundation) 2020 CONTRIBUTIONS

 
Anthony DeChellis CEO SVB PRIVATE BANK & WEALTH MANAGEMENT <1 year at SVB Jeffrey Leerink CHIEF EXECUTIVE OFFICER SVB LEERINK 2 years at SVB Yvette Butler PRESIDENT OF SVB PRIVATE BANK & WEALTH MANAGEMENT 3 years at SVB Strong, seasoned management team 50 Laura Izurieta CHIEF RISK OFFICER 5 years at SVB Dan Beck CHIEF FINANCIAL OFFICER 4 years at SVB Greg Becker PRESIDENT AND CEO SVB FINANCIAL GROUP 28 years at SVB Marc Cadieux CHIEF CREDIT OFFICER 29 years at SVB John China PRESIDENT OF SVB CAPITAL 25 years at SVB Phil Cox CHIEF OPERATIONS OFFICER 12 years at SVB Michelle Draper CHIEF MARKETING OFFICER 8 years at SVB Chris Edmonds- Waters CHIEF HUMAN RESOURCES OFFICER 17 years at SVB Michael Zuckert GENERAL COUNSEL 7 years at SVB 12 years average tenure at SVB Mike Descheneaux PRESIDENT SILICON VALLEY BANK 15 years at SVB Diverse experience and skills to help direct our growth Q3 2021 Financial Highlights John Peters CHIEF AUDITOR 14 years at SVB

 
The following terms are used throughout this presentation to refer to certain SVB-specific metrics: Non-GAAP Measures (Please see “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release and non-GAAP reconciliations at the end of this presentation) Core Fee Income – Fees from letters of credit, client investments, credit cards, deposit service charges, foreign exchange, lending-related fees and wealth management and trust, in aggregate. Core Fee Income plus SVB Leerink Revenue – Core fee income, from above, plus investment banking revenue and commissions. SVB Leerink Revenue – SVB Leerink revenue defined as investment banking revenue and commissions and excludes other income earned by SVB Leerink. Gains (losses) on Investment Securities, Net of Non-Controlling Interests – Net gains on investment securities include gains and losses from our non-marketable and other equity securities, which include public equity securities held as a result of exercised equity warrant assets, gains and losses from sales of our Available-For-Sale debt securities portfolio, when applicable, and carried interest. This measure excludes amounts attributable to noncontrolling interests for which we effectively do not receive the economic benefit or cost. Note regarding Q3’21 expectations presented and non-GAAP measures – Non-GAAP Core Fee Income and SVB Leerink Revenue collectively represent noninterest income, but exclude certain line items where performance is typically subject to market or other conditions beyond our control. Other Measures Fixed Income Securities – Available-for-sale ("AFS") and held-to-maturity ("HTM") securities held on the balance sheet. Total Client Funds (“TCF”) – The sum of on-balance sheet deposits and off-balance sheet client investment funds. Beginning in Q3’21, TCF excludes Private Bank assets under management. Private Bank Assets Under Management (“AUM”) – Consists of the Private Bank’s client investment accounts balances. Total Client Position (“TCP”) – Represents sum of Private Bank assets under management (“AUM”), and loans and deposits as reported in our segment reporting for SVB Private Bank. Glossary Q3 2021 Financial Highlights 51

 
Glossary (continued) Q3 2021 Financial Highlights 52 Adapted from ER 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 and 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 Commercial & Industrial (“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.

 
Acronyms and abbreviations Q3 2021 Financial Highlights 53 FTE – Full-time employee FX – Foreign exchange FY – Full year GFB – Global Fund Banking HC – Healthcare HNW/UHNW – High net worth, ultra high net worth HTM – Held-to-maturity ID – Investor dependent IPO – Initial public offering JV – Joint venture LIHTC – Low income housing tax credit funds LOC – Letter of credit LP – Limited partner LS – Life science LTV – Loan-to-value M&A –Merger & acquisition MBS –Mortgage-backed security Munis –Municipal bonds NCI – Non-controlling interests NCO –Net charge-off NII – Net interest income NIM –Net interest margin NPL – Non-performing loan ACL – Allowance for credit losses AFS – Available-for-sale APAC –Asia-Pacific API –Application programming interface AUM– Assets under management BKX – KBW Nasdaq Bank Index BP – Boston Private Bp – Basis point BD&T – Business development & travel C&I – Commercial and industrial CAGR – Compound annual growth rate CFD – Cash-flow dependent CMO – Collateralized mortgage obligation CMBS– Commercial mortgage-backed security Corp Fin –Corporate Finance CRA – Community Reinvestment Act CRE- Commercial Real Estate DEI –Diversity, equity and inclusion Dep – Dependent EMEA – Europe, the Middle East and Africa EOP – End of period Ex – Excluding EPS – Earnings per share FHLB – Federal Home Loan Bank FRB – Federal Reserve Board OBS–Off-balance sheet OCI –Other comprehensive income PBWM – Private bank wealth management PCD – Purchased credit deteriorated PE –Private equity QoQ –Quarter over quarter Repo – Repurchase agreement ROE –Return on equity SBA PPP – Small Business Administration Paycheck Protection Program SEC – Securities & Exchange Commission SLBO – Sponsor-led buyout SPAC – Special purpose acquisition company SPD – Shanghai Pudong Development Bank SVBFG – SVB Financial Group TCP – Total client position Tech – Technology UST –U.S. Treasury security WM&T –Wealth management and trust VC – Venture capital YoY– Year over year YTD – Year to date

 
54Q3 2021 Financial Highlights Non-GAAP reconciliations

 
Non-GAAP reconciliation Core Fee Income Q3 2021 Financial Highlights Non-GAAP core fee income (dollars in millions) Year ended December 31, 2017 2018 2019 2020 9/30/21 YTD GAAP noninterest income 557 745 1,221 1,840 2,177 Less: gains on investment securities, net 65 88 135 421 661 Less: net gains on equity warrant assets 54 89 138 237 491 Less: other noninterest income 59 52 55 98 97 Non-GAAP core fee income plus SVB Leerink revenue 379 516 893 1,084 928 Investment banking revenue — — 195 414 335 Commissions — — 56 67 58 Less: total non-GAAP SVB Leerink revenue — — 251 481 393 Non-GAAP core fee income 379 516 642 603 535 55See “Use of non-GAAP Financial Measures” in our Q3 2021 Earnings Release for more information.

 
Important information regarding forward-looking statements and use of non-GAAP financial measures Q3 2021 Financial Highlights 56 The Company’s financial results for 2021 reflected in this presentation are unaudited. This document should be read in conjunction with the Company’s SEC filings. Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements are statements that are not historical facts, such as forecasts of our future financial results and condition, expectations for our operations and business, and our underlying assumptions of such forecasts and expectations. In addition, forward-looking statements generally can be identified by the use of such words as “becoming,” “may,” “will,” “should,” “could,” “would,” “predict,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “assume,” “seek,” “expect,” “plan,” “intend,” the negative of such words or comparable terminology. In this presentation, we make forward-looking statements discussing management’s expectations for 2021 and 2022 about, among other things, economic conditions; the continuing and potential effects of the COVID-19 pandemic; opportunities in the market; the outlook on our clients' performance; our financial, credit, and business performance, including potential investment gains, loan growth, loan mix and loan yields, deposit growth, and expense levels; our expected effective tax rate; accounting impacts; financial results (and the components of such results) and the continuing integration of Boston Private. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we have based these expectations on our current beliefs as well as our assumptions, and such expectations may not prove to be correct. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside our control. Our actual results of operations and financial performance could differ significantly from those expressed in or implied by our management’s forward-looking statements. Important factors that could cause our actual results and financial condition to differ from the expectations stated in the forward-looking statements include, among others: market and economic conditions (including the general condition of the capital and equity markets, and IPO, secondary offering, SPAC fundraising, M&A and financing activity levels) and the associated impact on us (including effects on client demand for our commercial and investment banking and other financial services, as well as on the valuations of our investments); the COVID-19 pandemic and its effects on the economic and business environments in which we operate, and its effects on our operations, including, as a result of, prolonged work-from-home arrangements; the impact of changes from the Biden-Harris administration and the U.S. Congress on the economic environment, capital markets and regulatory landscape, including monetary, tax and other trade policies; changes in the volume and credit quality of our loans as well as volatility of our levels of nonperforming assets and charge-offs; the impact of changes in interest rates or market levels or factors affecting or affected by them, especially on our loan and investment portfolios; the adequacy of our allowance for credit losses and the need to make provisions for credit losses for any period; the sufficiency of our capital and liquidity positions; changes in the levels of our loans, deposits and client investment fund balances; changes in the performance or equity valuations of funds or companies in which we have invested or hold derivative instruments or equity warrant assets; variations from our expectations as to factors impacting our cost structure; changes in our assessment of the creditworthiness or liquidity of our clients or unanticipated effects of credit concentration risks which create or exacerbate deterioration of such creditworthiness or liquidity; variationsfrom our expectations as to factors impacting the timing and level of employee share-based transactions; the occurrence of fraudulent activity, including breaches of our information security or cyber security-related incidents; business disruptions and interruptions due to natural disasters and other external events; the impact on our reputation and business from our interactions with business partners, counterparties, service providers and other third parties; the expansion of our business internationally, and the impact of international market and economic events on us; the effectiveness of our risk management framework and quantitative models; our ability to maintain or increase our market share, including through successfully implementing our business strategy and undertaking new business initiatives, including through the continuing integration of Boston Private and the expansion of SVB Leerink into the technology investment banking sector; greater than expected costs or other difficulties related to the continuing integration of our business and that of Boston Private; variations from our expectations as to the amount and timing of business opportunities, growth prospects and cost savings associated with the acquisition of Boston Private; the inability to retain existing Boston Private clients and employees following the Boston Private acquisition; unfavorable resolution of legal proceedings or claims, as well as legal or regulatory proceedings or governmental actions; variations from our expectations as to factors impacting our estimate of our full-year effective tax rate; changes in applicable accounting standards and tax laws; and regulatory or legal changes and their impact on us. The operating and economic environment during the third quarter continued to be impacted by the COVID-19 pandemic and related government orders. Statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, potential variations of the virus, vaccination rates, the need for vaccine booster shots, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, including (i) our latest Annual Report on Form 10-K, (ii) our most recent Quarterly Report on Form 10-Q, and (iii) our most recent earnings release filed on Form 8-K. These documents contain and identify important risk factors that could cause the Company’s actual results to differ materially from those contained in our projections or other forward-looking statements. All forward-looking statements included in this presentation are made only as of the date of this presentation. We assume no obligation and do not intend to revise or update any forward-looking statements contained in this presentation, except as required by law. This presentation shall not constitute an offer or solicitation in connection with any securities. Use of Non-GAAP Financial Measures To supplement our financial disclosures that are presented in accordance with GAAP, we use certain non-GAAP measures of financial performance (including, but not limited to, non-GAAP core fee income, non-GAAP SVB Leerink revenue, non- GAAP core fee income plus non-GAAP SVB Leerink revenue, non-GAAP net gains on investment securities, non-GAAP non-marketable and other equity securities, and non-GAAP financial ratios) of financial performance. These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirement. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures (as applicable), provide meaningful supplemental information regarding our performance by: (i) excluding amounts attributable to non-controlling interests for which we effectively do not receive the economic benefit or cost of, where indicated, or (ii) providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, net income or other financial measures prepared in accordance with GAAP. Under the “Use of Non-GAAP Financial Measures” section in our latest earnings release filed as an exhibit to our Form 8-K on October 21, 2021, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP financial measures used in this presentation, or a reconciliation of the non-GAAP calculation of the financial measure. Please refer to that section of the earnings release for more information.

 
SVB Financial Group is the holding company for all business units and groups © 2021 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, SVB LEERINK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group. About SVB Financial Group For nearly 40 years, SVB Financial Group (NASDAQ: SIVB) and its subsidiaries have helped innovative companies and their investors move bold ideas forward, fast. SVB Financial Group’s businesses, including Silicon Valley Bank, offer commercial, investment and private banking, asset management, private wealth management, brokerage and investment services and funds management services to companies in the technology, life science and healthcare, private equity and venture capital, and premium wine industries. Headquartered in Santa Clara, California, SVB Financial Group operates in centers of innovation around the world. Learn more at www.svb.com. 57Q3 2021 Financial Highlights

 
Q3 2021 Financial Highlights @SVBFinancialGroup Silicon Valley Bank @SVB_Financial www.svb.com 58

 

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