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SVB Financial (SIVB)

For more than 35 years, SVB Financial Group 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 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.

Company profile

Ticker
SIVB, SIVBP
Exchange
Website
CEO
Gregory Becker
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
SILICON VALLEY BANCSHARES
SEC CIK
Subsidiaries
SPD Silicon Valley Bank Co., Ltd. • SVB Wealth Advisory, Inc. • SVBUK LTD • SVB Financial Group UK Limited • SVB Global Financial, Inc. • SVB Israel Advisors, Ltd. • SVB India Advisors, Pvt. Ltd. • SVB Business Partners (Beijing) Co. Ltd. • SVB Leerink Holdings LLC • Healthcare Innovation Investment Fund LLC ...
IRS number
942856336

SIVB stock data

Calendar

8 Aug 22
20 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 15.4B 15.4B 15.4B 15.4B 15.4B 15.4B
Cash burn (monthly) 1.74B 713.42M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 2.92B 1.2B n/a n/a n/a n/a
Cash remaining 12.47B 14.2B n/a n/a n/a n/a
Runway (months of cash) 7.2 19.9 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Aug 22 SVB Financial Common Stock Other Acquire J Yes No 9.34 - 23.46K -
1 Aug 22 SVB Financial Common Stock Other Acquire J Yes No 9.34 - 23.46K -
1 Aug 22 SVB Financial Common Stock Other Acquire J Yes No 9.34 - 46.91K -
1 Jul 22 SVB Financial Common Stock Other Acquire J Yes No 9.34 22,568.69 210.79K 3,891,486.89
1 Jul 22 SVB Financial Common Stock Other Acquire J Yes No 9.34 22,568.69 210.79K 3,891,486.89
1 Jul 22 SVB Financial Common Stock Other Acquire J Yes No 9.34 45,137.38 421.58K 7,782,973.79
7 Jun 22 Staglin Garen K Common Stock Sell Dispose S No No 491.9652 21 10.33K 13,680
7 Jun 22 Staglin Garen K Common Stock Sell Dispose S No No 491.2882 33 16.21K 13,701
7 Jun 22 Staglin Garen K Common Stock Sell Dispose S No No 490.2258 26 12.75K 13,734
7 Jun 22 Staglin Garen K Common Stock Sell Dispose S No No 488.56 12 5.86K 13,760
89.9% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 716 781 -8.3%
Opened positions 76 75 +1.3%
Closed positions 141 146 -3.4%
Increased positions 271 279 -2.9%
Reduced positions 261 303 -13.9%
13F shares Current Prev Q Change
Total value 21.02B 29.03B -27.6%
Total shares 53.12M 52.23M +1.7%
Total puts 342.1K 644.4K -46.9%
Total calls 344.3K 302.2K +13.9%
Total put/call ratio 1.0 2.1 -53.4%
Largest owners Shares Value Change
Vanguard 6.42M $2.54B +1.2%
BLK Blackrock 4.57M $1.81B -13.7%
STT State Street 2.82M $1.11B -4.0%
Capital International Investors 2.57M $1.02B +5.0%
JPM JPMorgan Chase & Co. 2.43M $960.42M +2.8%
Alecta Pensionsforsakring, Omsesidigt 2.15M $849.77M +20.8%
Capital Research Global Investors 1.85M $732.39M +159.4%
MS Morgan Stanley 1.21M $478.41M +23.0%
RY Royal Bank Of Canada 1.2M $475.17M -7.6%
Geode Capital Management 1.18M $466.07M +0.4%
Largest transactions Shares Bought/sold Change
Capital Research Global Investors 1.85M +1.14M +159.4%
BLK Blackrock 4.57M -727.14K -13.7%
Diamond Hill Capital Management 934.17K +723.59K +343.6%
IVZ Invesco 802.06K -468.34K -36.9%
LGEN Legal & General 0 -373.49K EXIT
Alecta Pensionsforsakring, Omsesidigt 2.15M +370.5K +20.8%
Adage Capital Partners GP, L.L.C. 502.63K +329.45K +190.2%
BEN Franklin Resources 370.66K -274.84K -42.6%
Artemis Investment Management 261.62K +239.76K +1097.0%
Parametric Portfolio Associates 0 -238.61K EXIT

Financial report summary

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Risks
  • Because of the credit profile of our loan portfolio, our levels of nonperforming assets and charge-offs can be volatile. We may need to make material provisions for credit losses in any period, which could reduce net income, increase net losses or otherwise adversely affect our financial condition in that period.
  • Our ACL is determined based upon both objective and subjective factors, and may not be adequate to absorb credit losses.
  • The borrowing needs of our clients have been and may continue to be unpredictable, especially during a challenging economic environment. We may not be able to meet our unfunded credit commitments, or adequately reserve for losses associated with our unfunded credit commitments, which could have a material adverse effect on our business, financial condition, results of operations or reputation.
  • Our interest rate spread may decline in the future. Any material reduction in our interest rate spread could have a material adverse effect on our business, results of operations or financial condition.
  • Liquidity risk could impair our ability to fund operations and jeopardize our financial condition.
  • Our equity warrant assets, venture capital and private equity fund investments and direct equity investment portfolio gains depend upon the performance of our portfolio investments and the general condition of the public and private equity and M&A markets, which are uncertain and may vary materially by period.
  • Changes in the market for public equity offerings, M&A or a slowdown in private equity or venture capital investment levels may affect the needs of our clients for investment banking or M&A advisory services and lending products, which could in turn adversely affect our business, results of operations or financial condition.
  • The occurrence of fraudulent activity, breaches of our information security or cybersecurity-related incidents could have a material adverse effect on our business, financial condition or results of operations.
  • We face risks associated with the ability of our IT systems and our people and processes to support our operations and future growth effectively.
  • Business disruptions and interruptions due to natural disasters and other external events beyond our control have in the past adversely affected our business, financial condition or results of operations and may do so in the future.
  • We face risks from a prolonged work-from-home arrangement, as well as from our eventual implementation of a broader plan to return to the office or increase virtual working arrangements.
  • We face reputation and business risks due to our interactions with business partners, service providers and other third parties.
  • The soundness of other financial institutions could adversely affect us.
  • We depend on the accuracy and completeness of information about customers and counterparties.
  • We face risks associated with our current international operations and ongoing international expansion.
  • Our holding company, SVB Financial, relies on equity warrant assets income, investment distributions, periodic capital market transactions and dividends from its subsidiaries for most of its cash revenues.
  • Climate change has the potential to disrupt our business and adversely impact the operations and creditworthiness of our clients.
  • We have recently experienced, and continue to experience, significant growth, including deposit growth. Our current level of growth may not be sustainable. Further, if our deposit growth continues at a similar or greater rate, we may need to raise additional equity to support our capital ratios.
  • We are subject to extensive regulation that could limit or restrict our activities, impose financial requirements or limitations on the conduct of our business, or result in higher costs to us, and the stringency of the regulatory framework applicable to us may increase if, and as, our balance sheet continues to grow.
  • In 2021, we exceeded $100 billion of average total consolidated assets (over four quarters). We are now subject to more stringent regulations, including certain enhanced prudential standards applicable to large bank holding companies. If we exceed $250 billion of average total consolidated assets, we will be subject to even more stringent regulations.
  • We face a risk of noncompliance and enforcement action with the Bank Secrecy Act, other anti-money laundering and anti-bribery statutes and regulations, and U.S. economic and trade sanctions.
  • Laws and regulations regarding the handling of personal data and information may impede our services or result in increased costs, legal claims or fines against us.
  • Adverse results from litigation or governmental or regulatory investigations can impact our business practices and operating results.
  • A failure to appropriately identify and address potential conflicts of interest could adversely affect our businesses.
  • Anti-takeover provisions and federal laws, particularly those applicable to financial institutions, may limit the ability of another party to acquire us, which could prevent a merger or acquisition that may be attractive to stockholders and/or have a material adverse effect on our stock price.
  • Concentration of risk increases the potential for significant losses, while the establishment of limits to mitigate concentration risk increases the potential for lower revenues and slower growth.
  • Decreases in the amount of equity capital available to our clients could adversely affect our business, growth and profitability.
  • We face competitive pressures that could adversely affect our business, results of operations, financial condition or growth.
  • Our ability to maintain or increase our market share depends on our ability to attract and maintain, as well as meet the needs of, existing and future clients.
  • We face risks in connection with our strategic undertakings and new business initiatives.
  • We may fail to realize the growth prospects and other benefits anticipated as a result of the Boston Private acquisition.
  • Our business reputation and relationships are important and any damage to them could have a material adverse effect on our business.
  • An ineffective risk management framework could have a material adverse effect on our strategic planning and our ability to mitigate risks and/or losses and could have adverse regulatory consequences.
  • If we fail to retain key employees or recruit new employees, or if we are unable to effectively manage the growth of our employee base, our growth and results of operations could be adversely affected.
  • Changes in accounting standards could materially impact our financial statements.
  • We could be adversely affected by changes in tax laws and regulations or their interpretations.
  • We rely on quantitative models to measure risks and to estimate certain financial values.
  • The price of our capital stock may be volatile or may decline.
  • Our capital stock is subordinate to our existing and future indebtedness.
Management Discussion
  • Net interest income is defined as the difference between: (i) interest earned on loans, fixed income investments in our AFS and HTM securities portfolios and short-term investment securities and (ii) interest paid on funding sources. Net interest margin is defined as annualized net interest income, on a fully taxable equivalent basis, as a percentage of average interest-earning assets. Net interest income and net interest margin are presented on a fully taxable equivalent basis to consistently reflect income from taxable loans and securities and tax-exempt securities based on the applicable federal statutory tax rate.
  • NII increased by $442 million to $1.2 billion for the three months ended June 30, 2022, compared to $735 million for the comparable 2021 period. Overall, our NII increased primarily from increases in average balances of our fixed income investment securities and loans as well as higher yields. The increase in NII was partially offset by increases in average balances of interest-bearing deposits as well as higher yields on deposits. Upon the completion of the Boston Private acquisition in July 2021, a $104 million fair market value adjustment was made on the acquired loans that will be amortized into loan interest income over the contractual terms of the underlying loans using the constant effective yield method. The adjustment will be approximately 90 percent amortized by the end of fiscal year 2023. For the three and six months ended June 30, 2022, respectively, $11 million and $25 million of this premium amortization partially offset the overall increase in NII.
  • ◦A $325 million increase in interest income from our fixed income investment securities due primarily to an increase of $54.4 billion in average fixed income investment securities and an increase in yields earned on these investments reflective of the higher rate environment in 2022 and lower premium amortization as a result of higher rates reducing estimated prepayment speeds, and

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New words: build, burn, confident, downturn, elevated, Fed, healthy, nominal, opportunity, peak, recession, shrinkage, slower, surrender, twelve, worse, worst
Removed: announcement, Coinbase, continuation, Downside, equally, favorable, GDP, highest, listing, practice, rank, redeemable, settled, stable, unsettled, unsubordinated, Upside