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Silicon Valley Bank Q2 Income Up

July 26, 2013 | Filed under News Briefs | Posted by

NEWS RELEASE
SANTA CLARA, Calif. — July 25, 2013 — SVB Financial Group (NASDAQ: SIVB) today announced financial results for the second quarter ended June 30, 2013.
 
Consolidated net income available to common stockholders for the second quarter of 2013 was $48.6 million, or $1.06 per diluted common share, compared to $40.9 million, or $0.90 per diluted common share, for the first quarter of 2013, and $47.6 million, or $1.06 per diluted common share, for the second quarter of 2012. Consolidated net income for the second quarter of 2012 included pre-tax gains of $5.0 million from the sale of certain available-for-sale securities and pre-tax gains of $4.2 million from the sale of certain assets related to our equity management services business. Excluding these gains, net income for the second quarter of 2012 was $42.1 million, or $0.94 per diluted common share. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures”.)
 
“We delivered very strong performance across the business, with outstanding growth in loans and total client funds, healthy gains on warrants and VC-related investments, and continued high credit quality. Our continued focus on building lifetime relationships with the best and most promising innovation companies contributed to solid returns in the second quarter and will help to set the stage for our future growth.”
 
Highlights of our second quarter 2013 results (compared to first quarter 2013, unless otherwise noted) included:
 
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Average loan balances of $9.0 billion, an increase of $341 million (or 3.9 percent). Period-end loan balances were $9.6 billion, an increase of $777 million (or 8.8 percent).
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Average total client funds (including both on-balance sheet deposits and off-balance sheet client investment funds) were $41.8 billion, an increase of $539 million (or 1.3 percent).
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Net interest income (fully taxable equivalent basis) of $170.5 million, an increase of $6.9 million (or 4.2 percent).
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Net interest margin of 3.40 percent, an increase of 15 basis points.
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A provision for loan losses of $18.6 million, compared to $5.8 million. The provision of $18.6 million was primarily driven by $8.8 million for period-end loan growth, as well as to provide for net charge-offs and a modest increase in our reserve for impaired loans.
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Gains on investment securities of $40.6 million, compared to $27.4 million. Non-GAAP gains on investment securities, net of noncontrolling interests, of $9.5 million, compared to $5.1 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures”.)
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Gains on equity warrant assets of $7.2 million, compared to $3.5 million.
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A decrease in noninterest expense of $5.7 million (or 3.8 percent), primarily related to seasonal compensation-related expenses in the first quarter of 2013.
 
Consolidated net income available to common stockholders for the six months ended June 30, 2013 was $89.5 million, or $1.96 per diluted common share, compared to $82.4 million, or $1.85 per diluted common share, for the comparable 2012 period. Non-GAAP net income available to common stockholders for the six months ended June 30, 2013 was $89.5 million, or $1.96 per diluted common share, compared to $76.9 million, or $1.72 per diluted common share, for the comparable 2012 period. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures”.)