About SVB Financial Group

SVB Financial Group operates as a diversified financial services company, as well as a bank holding company and a financial holding company. The company, through its various subsidiaries and divisions, offers a diverse set of banking and financial products and services to clients across the United States (U.S.), as well as in key international markets. The company serves entrepreneurs and clients of all sizes and stages throughout their life cycles, primarily in the technology, life science/healthcare, private equity/venture capital and premium wine industries. The company offers commercial and private banking products and services through its principal subsidiary, Silicon Valley Bank (the bank), which is a California state-chartered bank. The bank and its subsidiaries also offer asset management, private wealth management and other investment services. In addition, through its other subsidiaries and divisions, the company offers investment banking services and non-banking products and services, such as funds management and mergers and acquisitions (M&A) advisory services. The company focuses on cultivating relationships with firms within the private equity and venture capital community worldwide, many of which are also its clients and may invest in its corporate clients. The company operates 56 regional offices in the U.S., as well as offices outside the U.S. Segments The company operates through four segments: Global Commercial Bank, SVB Private Bank, SVB Capital, and SVB Securities. Global Commercial Bank This segment consists of results primarily from the company’s Commercial Bank, its Global Fund Banking Division, and SVB Wine. Commercial Bank: The company’s Commercial Bank products and services are provided by the bank and its subsidiaries to commercial clients primarily in the technology and life science/healthcare industries. The bank provides solutions to the financial needs of commercial clients through credit, treasury management, foreign exchange, trade finance and other financial products and services. The company serves clients within the U.S., as well as non-U.S. clients in key international innovation markets. The bank offers commercial clients a range of credit solutions, including traditional term loans, equipment loans, asset-based loans, revolving lines of credit, warehouse facilities, recurring revenue facilities, mezzanine lending, acquisition finance facilities, corporate working capital facilities, and credit card programs. These loans may be secured by clients' assets or future cash flows or may be unsecured. The bank's treasury management products and services include a range of deposits and receivable services, payments and cash management solutions accessible through the company’s expanding online and mobile banking platforms. Deposit products include business and analysis checking accounts, money market accounts, multi-currency accounts, in-country bank accounts and sweep accounts. In connection with deposit services, the bank provides receivables services, which include merchant services, remote capture, lockbox, and fraud control services. Payment and cash management products and services include wire transfer and automated clearing house payment services to enable clients to transfer funds, as well as business bill pay, business credit and debit cards, account analysis and disbursement services. The bank's foreign exchange and trade finance products and services help to facilitate clients' global finance and business needs. These products and services include foreign exchange services that help commercial clients to manage their foreign currency needs and risks through the purchase and sale of currencies in the spot market, as well as with currency swaps and hedges. The bank also offers letters of credit, including export, import and standby letters of credit, to enable clients to ship and receive goods globally. The bank and its subsidiaries also offer a variety of investment services and solutions to its clients that enable them to manage their assets. Through its registered investment advisory subsidiary, SVB Asset Management, the bank offers discretionary investment advisory services based on its clients' investment policies, strategies and objectives. The bank also offers investment solutions through its repurchase agreement program. Global Fund Banking Division: The company’s Global Fund Banking Division provides banking products and services primarily to its global private equity and venture capital clients. SVB Wine: SVB Wine provides banking products and services to the company’s premium wine industry clients, including vineyard development loans. SVB Private Bank This segment is the private banking and wealth management division of the bank and provides an array of personal financial solutions for its clients, which are primarily executive leaders and senior investment professionals in the economy. SVB Private Bank, which includes SVB Wealth Advisory, Inc. (SVB Wealth Advisory), a registered investment advisor and broker-dealer subsidiary of the bank, offers a customized approach to private wealth management and private banking services, including mortgages, home equity lines of credit, restricted stock purchase loans, capital call lines of credit and other secured and unsecured lending products. The company also helps its private banking clients meet their cash management needs by providing deposit account products and services, including checking, money market, certificates of deposit accounts, online banking, credit cards and other personalized banking services. SVB Private Bank also includes SVB Wealth Advisory, an investment advisory subsidiary of the bank, which provides private wealth management services to individual clients. SVB Capital This segment is the venture capital investment arm of the company, which focuses primarily on funds management. SVB Capital manages over $7.3 billion of funds on behalf of third party limited partner investors and the company. The SVB Capital family of funds consists of pooled investment vehicles, such as direct venture funds that invest in companies and funds of funds that invest in other venture capital funds, and debt funds that provide lending and other financing solutions. SVB Capital generates income for the company primarily through investment returns (including carried interest) and management fees. SVB Securities This segment is an investment bank focuses on the innovation economy and operates as a wholly-owned subsidiary of SVB Financial Group. SVB Securities provides investment banking services across all major sub-sectors of Healthcare and Technology. Healthcare sub-sectors include Biopharma, Digital Health and HealthTech, Healthcare Services, Medical Devices and Tools and Diagnostics. SVB Securities launched Technology investment banking in 2021 and serves numerous Technology sub-sectors, including Consumer Internet, Commerce Enablement and Marketing Software, Digital Infrastructure and Tech-Enabled Services, Education Technology, Enterprise Software, Industrial Technology and FinTech. SVB also expanded equity research coverage to include Technology companies with the acquisition of MoffettNathanson LLC in 2021. SVB Securities focuses on four main product and service offerings, such as Capital Raising, M&A Advisory, Equity Research and Sales and Trading. Client Industries The company serves its commercial company clients throughout their life cycles, beginning with the ‘emerging’ or ‘early-stage’ and progressing through later stages as their needs mature and expand, primarily in the technology and life science/healthcare industries. It also serves other targeted client industries, such as private equity and venture capital firms, premium wine and private banking/wealth management. Technology and Life Science/Healthcare The company serves a variety of clients in the technology and life science/healthcare industries. Its technology clients tend to be in the industries of frontier tech and hardware (such as semiconductors, communications, data, storage and electronics); enterprise and consumer software/internet (such as infrastructure software, applications, software services, digital content and advertising technology), fintech and energy and resource innovation. The company’s life science/healthcare clients primarily tend to be in the industries of biotechnology, medical devices, healthcare information technology and healthcare services. The company serves these clients primarily through three practices: The company’s SVB Accelerator practice focuses on serving its ‘emerging’ or ‘early-stage’ clients. These clients are privately-held companies in the start-up or early stages of their life cycles and funded by friends and family, ‘seed’ or ‘angel’ investors or have gone through an initial round of venture capital financing. SVB Accelerator clients tend to have annual revenues below $5 million, and many are pre-revenue companies. The company’s SVB Growth practice serves its ‘mid-stage’ and ‘later-stage’ clients. These clients are privately-held companies in the intermediate or later stages of their life cycles, and are often dependent on venture capital for funding. However, some of these clients are in the more advanced stages of their life cycles and may be publicly-held or poised to become publicly-held. SVB Growth clients tend to have annual revenues between $5 million and $75 million. The company’s SVB Corporate Finance practice primarily serves its large corporate clients, which are mature and established companies. These clients are publicly-held or large privately-held companies and have a more sophisticated product or service offering in the market. SVB Corporate Finance clients tend to have annual revenues over $75 million. In addition, the company’s Sponsored Finance group provides debt financing in support of private equity sponsored company acquisitions, primarily technology and life science/healthcare companies. Global Fund Banking The company serves clients in the private equity/venture capital community, many of whom are investors in the portfolio company clients to whom it provides banking services. In particular, the company provides credit facilities to its private equity/venture capital clients, including capital call lines of credit, the repayment of which is dependent on the payment of capital calls or management fees by the underlying limited partner investors in the funds managed by the firms. Premium Wine The company provides financial services to premium wine producers across the western U.S., primarily in California’s Napa Valley, Sonoma County and Central Coast regions, as well as the Pacific Northwest. It focuses on vineyards and wineries that produce grapes and premium wines. Private Bank/Wealth Management The company provides private banking and wealth management services to consumer clients, including private equity/venture capital professionals and executive leaders of the innovation companies they support. It offers private banking, cash management and wealth management services to meet their personal banking and financial needs. Investment Securities As of December 31, 2021, the company’s investment securities included U.S. treasury securities; U.S. agency debentures; foreign government debt securities; residential mortgage-backed securities, such as agency-issued mortgage-backed securities and agency-issued collateralized mortgage obligations—fixed rate; and agency-issued commercial mortgage-backed securities. Regulation As a bank holding company that has elected financial holding company status, the company is subject to primary regulation, supervision, and examination by the Board of Governors of the Federal Reserve System (the Federal Reserve) under the Bank Holding Company Act of 1956, as amended. The bank, as a California state-chartered bank and a member of the Federal Reserve System, is subject to primary supervision and examination by the Federal Reserve, as well as the California Department of Financial Protection and Innovation. In addition, the bank must comply with certain requirements of the Federal Deposit Insurance Corporation (FDIC), as to the extent provided by law, the bank’s deposits are insured by the FDIC. The company’s consumer banking activities also are subject to regulation and supervision by the Consumer Financial Protection Bureau (the CFPB). The company and certain of its non-bank subsidiaries are also subject to regulation by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), as well as certain other federal and state regulatory agencies. The bank continues to be in satisfactory compliance with the Community Reinvestment Act of 1977 (CRA). Transactions between the bank and its operating subsidiaries (such as SVB Asset Management or SVB Wealth Advisory), on the one hand, and the bank’s affiliates (such as SVB Financial, SVB Securities or an entity affiliated with its SVB Capital business), on the other, are subject to statutory and regulatory restrictions designed to limit the risks to the bank and its subsidiaries, including Sections 23A and 23B of the Federal Reserve Act and the Federal Reserve’s Regulation W. The FDIC insures the company’s customer deposits through the Deposit Insurance Fund up to prescribed limits for each depositor. The bank is subject to many federal consumer protection statutes and regulations, such as the CRA, the Equal Credit Opportunity Act (Regulation B), the Electronic Fund Transfer Act (Regulation E), the Truth in Lending Act (Regulation Z), the National Flood Insurance Act, the Fair Credit Reporting Act (as amended by the Fair and Accurate Credit Transaction Act) and various federal and state privacy protection laws. As a depository institution with more than $10 billion in total assets, the bank is subject to examination by the CFPB. In addition, the company must comply with economic sanctions administered by the U.S. Treasury's Office of Foreign Assets Control and targeted against designated foreign countries, nationals and others. The company is also subject to anti-corruption laws and regulations in the U.S. and internationally, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act, which impose strict prohibitions on payments and hiring practices with regard to government officials and employees. SVB Securities LLC, a subsidiary of SVB Securities, and SVB Wealth Advisory, a subsidiary of the bank, are each registered as broker-dealers with the SEC and are members of FINRA, and are subject to regulation by both agencies. They are also members of the Securities Investor Protection Corporation. SVB Asset Management, SVB Wealth Advisory and funds management entities associated with SVB Securities Capital LLC, a subsidiary of SVB Securities, are registered with the SEC under the Investment Advisers Act of 1940, as amended, and are subject to its corresponding regulations. SVB Securities LLC and SVB Wealth Advisory must comply with the financial responsibility rules governing broker-dealers, including Rule 15c3-1 under the Securities Exchange Act of 1934, as amended. As a public company, the company is also subject to the accounting oversight and corporate governance requirements of the Sarbanes-Oxley Act of 2002. The company’s international-based subsidiaries and offices and global activities, including its banking branches in the United Kingdom (U.K.), Germany, Canada and the Cayman Islands, as well as its joint venture bank in China, are subject to the respective laws and regulations of those countries and the regions in which they operate. This includes laws and regulations promulgated by the Financial Conduct Authority and the Prudential Regulation Authority in the U.K.; the Office of the Superintendent of Financial Institutions in Canada; the German Federal Financial Supervisory Authority; the China Banking and Insurance Regulatory Commission; the Cayman Islands Monetary Authority; and the Hong Kong Monetary Authority. History SVB Financial Group was founded in 1983. The company was incorporated in 1999.