SVB Financial : Announces 2018 Fourth Quarter and Full Year Financial Results

Exhibit 99.1

3003 Tasman Drive, Santa Clara, CA 95054www.svb.com

For release at 1:00 P.M. (Pacific Time) January 24, 2019

Contact: Meghan O'Leary Investor Relations [phone]

NASDAQ: SIVB

SVB FINANCIAL GROUP ANNOUNCES 2018 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

SANTA CLARA, Calif. - January 24, 2019 - SVB Financial Group (NASDAQ: SIVB) today announced financial results for the fourth quarter and year ended December 31, 2018.

Consolidated net income available to common stockholders for the fourth quarter of 2018 was $266.3 million, or $4.96 per diluted common share, compared to $274.8 million, or $5.10 per diluted common share, for the third quarter of 2018 and $117.2 million, or $2.19 per diluted common share, for the fourth quarter of 2017. Consolidated net income available to common stockholders for the year ended December 31, 2018 was $973.8 million, or $18.11 per diluted common share, compared to $490.5 million, or $9.20 per diluted common share, for the comparable 2017 period. The fourth quarter, and full year, 2018 results included $8.5 million and $9.1 million, respectively, in noninterest expense consisting primarily of legal and consulting fees associated with the acquisition of Leerink Holdings LLC, now SVB Leerink Holdings LLC ("SVB Leerink"), which closed on January 4, 2019.

"Our fourth quarter performance represented a strong close to an outstanding year, during which we delivered double digit balance sheet growth, increased revenues by more than 30 percent and nearly doubled net income" said Greg Becker, President and CEO of SVB Financial Group. "Despite broader market volatility and uncertainty, we believe the current health and historical resilience of our clients; our investments in client experience, employee enablement and process transformation; and our continued effective execution of growth initiatives across the business will enable us to deliver strong performance in 2019."

Highlights of our fourth quarter 2018 results (compared to third quarter 2018, unless otherwise noted) included:

• • Average loan balances of $27.5 billion, an increase of $1.2 billion (or 4.4 percent).

• • Period-end loan balances of $28.3 billion, an increase of $0.8 billion (or 3.1 percent).

• • Average fixed income investment securities of $24.5 billion, a decrease of $1.0 billion (or 4.0 percent).

• • Period-end fixed income investment securities of $23.3 billion, a decrease of $1.7 billion (or 6.8 percent).

• • Average total client funds (on-balance sheet deposits and off-balance sheet client investment funds) increased $5.5 billion (or 4.3 percent) to $134.1 billion.

• • Period-end total client funds increased $4.6 billion (or 3.5 percent) to $135.3 billion.

• • Net interest income (fully taxable equivalent basis) of $517.4 million, an increase of $21.3 million (or 4.3 percent).

• • Provision for credit losses of $13.6 million, compared to $17.2 million.

• • Net loan charge-offs of $13.9 million, or 20 basis points of average total gross loans (annualized), compared to $20.0 million, or 30 basis points.

• • Net gains on investment securities, of $10.7 million, compared to $32.2 million. Non-GAAP net gains on investment securities, net of noncontrolling interests, were $1.8 million, compared to $25.6 million. (See non-GAAP reconciliation under the section "Use of Non-GAAP Financial Measures.")

• • Net gains on equity warrant assets of $16.7 million, compared to $34.1 million.

• • Noninterest income of $186.7 million, a decrease of $23.4 million (or 11.1 percent). Non-GAAP core fee income increased $14.3 million (or 10.9 percent) to $146.0 million. (See non-GAAP reconciliation under the section "Use of Non-GAAP Financial Measures.")

• • Noninterest expense of $307.6 million, a decrease of $1.8 million (or 0.6 percent).

• • Effective tax rate of 28.3 percent compared to 25.8 percent.

• • Repurchase and retirement of 715,207 shares of our common stock totaling $147.1 million.

Fourth Quarter and Full-Year 2018 Summary

(Dollars in millions, except share data, employees and ratios)

Income statement:

Diluted earnings per common share

Net income available to common stockholders

Net interest income Provision for credit losses Noninterest income Noninterest expense Non-GAAP core fee income (1)

Non-GAAP noninterest income, net of noncontrolling interests (1)

Non-GAAP noninterest expense, net of noncontrolling interests (1)

Fully taxable equivalent:

Net interest income (2)

Net interest margin Balance sheet:

Average total assets

Average loans, net of unearned income

Average available-for-sale securities Average held-to-maturity securities

Average noninterest-bearing demand deposits

Average interest-bearing deposits Average total deposits

Average short-term borrowings Average long-term debt Period-end total assets

Period-end loans, net of unearned income

Period-end available-for-sale securities

$

Period-end held-to-maturity securities

Period-end non-marketable and other equity securities

Period-end noninterest-bearing demand deposits

Period-end interest-bearing deposits Period-end total deposits Period-end short-term borrowings Period-end long-term debt

Off-balance sheet:

Average client investment funds Period-end client investment funds Total unfunded credit commitments Earnings ratios:

Return on average assets

(annualized) (3)

Return on average SVBFG stockholders' equity (annualized) (4)

Asset quality ratios:

Allowance for loan losses as a % of total gross loans

Allowance for loan losses for performing loans as a % of total gross performing loans

December 31, 2018

$

4.96

266.3

514.5

13.6

186.7

307.6

146.0

177.9

307.4

$

517.4 3.69%

57,592.3

$

27,477.0 8,793.7 15,691.1

40,106.9

8,980.3

49,087.2

1,580.0

696.3

56,928.0

28,338.3

7,790.0 15,487.4

941.1

39,103.4

10,225.5

49,328.9

631.4

2,631.3

696.5

$

85,038.8 85,983.8 18,913.0

• $ 79,560.8$ 71,311.5

82,085.0 18,539.5

1.83%

20.61

Three months endedSeptember 30, 2018

$

5.10

274.8

493.2

17.2

210.1

309.4

131.7

203.4

309.3

$

496.1 3.62%

56,465.0

$

26,331.4 9,589.9 15,916.7

8,466.5

745.2

58,139.7

9,087.6 15,899.7

896.2

8,122.3

1.93%

22.46

June 30, 2018

March 31, 2018

$

4.42

$

3.63

237.8

195.0

466.4

419.9

29.1

28.0

192.7

155.5

305.7

265.4

123.1

115.0

183.2

142.5

305.5

265.4

$

468.5 3.59%

$

421.2 3.38%

54,420.6

$

52,367.2

$

24,858.5 10,048.4 15,112.2

23,807.2 10,748.5 13,234.3

37,950.8

8,157.5

8,155.3

46,106.1

121.1

112.1

695.6

55,867.7

53,500.8

24,587.9

9,593.4 15,898.3

10,080.4 14,548.9

852.5

824.9

37,515.4

8,294.0

8,421.2

45,936.5

417.2

1,102.1

695.7

$

64,377.7 67,739.2 17,170.8

$

75,773.7 18,728.4

1.75%

1.51%

20.82

18.12

December 31,	December 31,	December 31,
2017	2018	2017

Year ended

$

2.19

117.2

393.7

22.2

152.3

264.0

106.4

144.5

263.7

$

18.11 $ 9.20

973.8 490.5

1,894.0 1,420.4

87.9 92.3

745.0 557.2

1,188.2 1,010.7

515.9 379.0

707.0 527.8

1,187.7 1,009.8

$

395.3 3.20%

50,799.4

$

22,444.1 12,081.0 11,703.0

36,962.0

7,811.4

44,773.4

75.2

743.2

51,214.5

23,106.3

11,120.7 12,663.5

651.1

36,655.5

39,103.4 36,655.5

7,598.6

44,254.1

1,033.7

631.4 1,033.7

695.5

57,589.1 60,329.7 17,462.5

$

85,983.8 60,329.7 18,913.0 17,462.5

0.92%

11.09

$

1,903.2

3.57%

55,229.1

$ 48,380.3

25,630.5 21,159.4 9,789.2 12,424.1 14,997.8 9,984.6

39,633.1 35,235.2

8,442.2 7,509.9

48,075.3 42,745.1

643.9 48.5

695.9 766.9

56,928.0 51,214.5

28,338.3 23,106.3

7,790.0 11,120.7

15,487.4 12,663.5

941.1

10,225.5 7,598.6

49,328.9 44,254.1

75,072.2

$ 51,525.5

1.76%

20.57

$ 1,423.4

3.05%

651.1

1.01%

12.38

0.99%

1.03%

1.10%

1.11%

1.10%

0.99%

1.10%

0.86

0.86

0.90

0.93

0.92

0.86

0.92

Gross loan charge-offs as a % of average total gross loans (annualized)

Net loan charge-offs as a % of average total gross loans (annualized)

Other ratios:

GAAP operating efficiency ratio (5)

Non-GAAP operating efficiency ratio

(1)

0.28 0.20 43.87%44.22

0.33 0.30 44.00%44.22

0.25 0.22 46.39%46.88

0.18 0.15 46.13%47.09

0.27 0.23 48.36%48.85

0.26 0.31

0.22 0.27

45.02%51.11%

45.50 51.76

Non-GAAP core operating efficiency ratio (1)

45.66

48.58

50.62

48.51

50.96

48.27 54.38

SVBFG CET 1 risk-based capital ratio Bank CET 1 risk-based capital ratio SVBFG total risk-based capital ratio Bank total risk-based capital ratio SVBFG tier 1 leverage ratio Bank tier 1 leverage ratio

13.41

13.28

12.92

12.87

12.78

13.41 12.78

12.41

11.98

11.76

11.90

12.06

12.41 12.06

14.45

14.34

14.03

13.99

13.96

14.45 13.96

13.32

12.91

12.72

12.88

13.04

13.32 13.04

9.06

8.99

8.81

8.67

8.34

9.06 8.34

Period-end loans, net of unearned income, to deposits ratio

Average loans, net of unearned income, to average deposits ratio

8.10 57.45 55.98

7.82 56.58 53.64

7.72 53.18 51.82

7.69 53.53 51.64

7.56 52.21 50.13

8.10 7.56

57.45 52.21

53.31 49.50

Book value per common share (6)

$

• 97.29 $

• 92.48 $

• 87.53 $

• 83.43 $

• 79.11 $

97.29 $ 79.11

Other statistics:

Average full-time equivalent ("FTE")

employees

Period-end full-time equivalent

("FTE") employees

2,873 2,900

2,778 2,836

2,591 2,626

2,498 2,512

2,433 2,438

2,685 2,396

2,900 2,438

• (1) 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."

• (2) 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 for 2018 and 35.0 percent for 2017. The taxable equivalent adjustments were $3.0 million for the quarter ended December 31, 2018, $2.9 million for the quarter ended September 30, 2018, $2.0 million for the quarter ended June 30, 2018, $1.4 million for the quarter ended March 31, 2018 and $1.6 million for the quarter ended December 31, 2017. The taxable equivalent adjustments were $9.2 million and $3.1 million for the years ended December 31, 2018 and December 31, 2017, respectively.

• (3) Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average assets.

• (4) Ratio represents annualized consolidated net income available to common stockholders divided by quarterly average SVB Financial Group ("SVBFG") stockholders' equity.

• (5) Ratio is calculated by dividing noninterest expense by total net interest income plus noninterest income.

• (6) Book value per common share is calculated by dividing total SVBFG stockholders' equity by total outstanding common shares.

Net Interest Income and Margin

Net interest income, on a fully taxable equivalent basis, was $517.4 million for the fourth quarter of 2018, compared to $496.1 million for the third quarter of 2018. The $21.3 million increase from the third quarter of 2018 to the fourth quarter of 2018, was attributable primarily to the following:

• • An increase in interest income from loans of $26.4 million to $378.8 million for the fourth quarter of 2018. The increase was reflective primarily of the impact of $1.2 billion in average loan growth, higher interest rates compared to the third quarter of 2018, and higher loan fee income. Overall loan yields increased 16 basis points, to 5.47 percent. Gross loan yields, excluding loan interest recoveries and loan fees, increased 15 basis points to 4.96 percent, as compared to 4.81 percent for the third quarter of 2018, reflective primarily of the full-quarter effect of the Federal Funds target rate increase in September 2018 as well as higher LIBOR rates. Benefits from the rate increases on our gross loan yields in the fourth quarter of 2018 continue to be impacted by pricing competition. Loan fee yields increased 1 basis point, or $2.7 million, primarily due to higher fee income from increased levels of loan prepayments in the quarter,

• • An increase of $7.0 million in interest income from short-term investment securities reflective primarily of a $1.1 billion increase in average interest-earning Federal Reserve cash balances and higher market rates,

• • A decrease in interest income from our fixed income investment securities of $3.7 million to $152.0 million for the fourth quarter of 2018. The decrease was reflective of lower average fixed income securities of $1.0 billion

offset by higher spreads from the reinvestment of maturing fixed income investment securities at higher-yielding rates throughout 2018. Our overall yield from our fixed income securities portfolio increased 4 basis points to 2.46 percent, primarily attributable to the higher reinvestment rates, and

• • An increase in interest expense of $8.3 million, due to an increase in our average short-term borrowings balance during the fourth quarter of 2018, due primarily to fund loan growth as a result of the timing of loan funding and deposit activities towards the end of the third quarter of 2018, as well as an increase in interest paid on our interest-bearing money market deposits due to market rate adjustments.

Net interest margin, on a fully taxable equivalent basis, was 3.69 percent for the fourth quarter of 2018, compared to 3.62 percent for the third quarter of 2018. Our net interest margin increased primarily as a result of the impact of rising interest rates on gross loans and fixed income investment securities yields, offset by higher short-term borrowings to primarily fund loan growth and increased rates paid on our interest-bearing deposit accounts.

For the fourth quarter of 2018, approximately 92.6 percent, or $25.6 billion, of our average gross loans were variable-rate loans that adjust at prescribed measurement dates. Of our variable-rate loans, approximately 67.8 percent are tied to prime-lending rates and 32.2 percent are tied to LIBOR.

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 primarily 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 decreased $1.0 billion, or 4.0 percent, to $24.5 billion for the quarter ended December 31, 2018. Our total period-end fixed income investment securities portfolio decreased $1.7 billion, or 6.8 percent, to $23.3 billion at December 31, 2018. The weighted-average duration of our fixed income investment securities portfolio was 3.8 years at December 31, 2018, and 3.9 years at September 30, 2018. Our period-end non-marketable and other equity securities portfolio increased $44.9 million to $941.1 million ($806.1 million net of noncontrolling interests) at December 31, 2018.

Available-for-Sale Securities

Average AFS securities were $8.8 billion for the fourth quarter of 2018 compared to $9.6 billion for the third quarter of 2018. Period-end AFS securities were $7.8 billion at December 31, 2018 compared to $9.1 billion at September 30, 2018. The decreases in average and period-end AFS security balances from the third quarter of 2018 to the fourth quarter of 2018 were due to $0.9 billion in portfolio pay downs and maturities during the fourth quarter of 2018 and the sale of $0.5 billion of AFS securities comprised of U.S. Treasury and agency-backed mortgage securities during the quarter. The weighted-average duration of our AFS securities portfolio was 2.1 years at both December 31, 2018 and September 30, 2018.

Held-to-Maturity Securities

Average HTM securities were $15.7 billion for the fourth quarter of 2018, compared to $15.9 billion for the third quarter of 2018. Period-end HTM securities were $15.5 billion at December 31, 2018 compared to $15.9 billion and September 30, 2018. The decreases in average and period-end HTM security balances from the third quarter of 2018 to the fourth quarter of 2018 were primarily due to $0.4 billion in portfolio pay downs and maturities during the fourth quarter of 2018. The weighted-average duration of our HTM securities portfolio was 4.7 years at December 31, 2018 and 4.9 years at September 30, 2018.

Non-Marketable and Other Equity Securities

Our non-marketable and other equity securities portfolio primarily represents investments in venture capital and private equity funds, our China joint venture bank, debt funds, private and public portfolio companies and investments in qualified affordable housing projects.

Our non-marketable and other equity securities portfolio increased $44.9 million to $941.1 million ($806.1 million net of noncontrolling interests) at December 31, 2018, compared to $896.2 million ($765.3 million net of noncontrollinginterests) at September 30, 2018. The increase was primarily attributable to new investments in qualified affordable housing projects. Reconciliations of our non-GAAP non-marketable and other equity securities, net of noncontrolling interests, are provided under the section "Use of Non-GAAP Financial Measures."

Loans

Average loans (net of unearned income) increased by $1.2 billion to $27.5 billion for the fourth quarter of 2018, compared to $26.3 billion for the third quarter of 2018. Period-end loans (net of unearned income) increased by $0.8 billion to $28.3 billion at December 31, 2018, compared to $27.5 billion at September 30, 2018. Average and period-end loan growth came primarily from our private equity/venture capital portfolio as well as from our life science/healthcare and private bank portfolios.

Loans (individually or in the aggregate) to any single client, equal to or greater than $20 million increased by $0.6 billion and totaled $14.5 billion or 50.8 percent of total gross loans at December 31, 2018 and $13.9 billion or 50.3 percent of total gross loans at September 30, 2018. Further details are provided under the section "Loan Concentrations."

Credit Quality

The following table provides a summary of our allowance for loan losses and our allowance for unfunded credit commitments:

(Dollars in thousands, except ratios)December 31, 2018

Allowance for loan losses, beginning balance

$ 285,713

$ 286,709

$ 249,010

$ 255,024

$ 225,366

Provision for loan losses

Gross loan charge-offs Loan recoveries

10,204 (19,697)

5,758

Three months ended
September 30,	December 31,	December 31,	December 31,
2018	2017	2018	2017
19,436	18,666	84,292	85,939
(15,233)	(67,917)	(66,682)
2,383	11,636	8,538

Year ended

(22,205)

2,164

Foreign currency translation adjustments

(1,075)

(391)

198

(2,132)

1,863

Allowance for loan losses, ending balance

$

280,903

$

285,713

$

255,024

$

280,903

$

255,024

Allowance for unfunded credit commitments, beginning balance

51,808

54,104

48,172

51,770

45,265

Provision for (reduction of) unfunded credit commitments

3,440

(2,262)

3,576

3,578

6,365

Foreign currency translation adjustments

(65)

(34)

22

(165)

140

55,183

Allowance for unfunded credit commitments, ending balance (1)

$

55,183

$

51,808

$

51,770

$

$

51,770

Ratios and other information:

Provision for loan losses as a percentage of period-end total gross loans (annualized)

Gross loan charge-offs as a percentage of average total gross loans (annualized)

Net loan charge-offs as a percentage of average total gross loans (annualized)

0.14% 0.28 0.20

0.28% 0.33 0.30

0.32% 0.27 0.23

0.30% 0.37%

0.26 0.31

0.22 0.27

Allowance for loan losses as a percentage of period-end total gross loans

0.99

1.03

1.10

0.99 1.10

Provision for credit losses Period-end total gross loans Average total gross loans

$

13,644

$

17,174

$

22,242

$

87,870

$

92,304

28,511,312

27,668,829

23,254,153

28,511,312 23,254,153

27,646,940

26,497,171

22,583,693

25,790,949 21,287,336

Allowance for loan losses for nonaccrual loans Nonaccrual loans

37,941

49,992

41,793

37,941 41,793

94,142

115,162

119,259

94,142 119,259

(1) The "allowance for unfunded credit commitments" is included as a component of "other liabilities."

Our allowance for loan losses decreased $4.8 million to $280.9 million due primarily to a decrease in reserves for nonaccrual loans of $12.1 million, offset by a net increase in our performing reserves of $7.2 million. The net increase in our performing reserves consisted primarily of an increase in reserves reflective of $0.8 billion in period-end loan growth. As a percentage of total gross loans, our allowance for loan losses decreased four basis points to 0.99 percent