Earnings per diluted share of $25.35 (down 18.9%).

Management’s Overview of 2022 Financial Performance2022 was a challenging year as prolonged market volatility slowed public and private fundraising activity, which pressured our balance sheet growth and valuations of our private fund investments.

The provision for loans of $288 million in 2022 was driven primarily by the deterioration in projected financial conditions which accounted for $129 million, of which $89 million was taken in the second quarter.

62Table of ContentsThe provision for credit losses was $10 million for 2022 driven primarily by a deterioration in projected economic conditions and loan growth.

Our provision for unfunded credit commitments in 2022 was driven primarily by the deterioration in economic forecasts described above which accounted for $67 million.

SVB Securities also includes fund investments which also negatively impacted noninterest income in 2022.

Consolidated net income available to common stockholders of $1.5 billion (down 14.7%).

The provision for 2022 was driven by a deterioration in projected economic conditions, as well as growth in funded loans and unfunded commitments.

While nonperforming loans and net charge offs did increase towards the end of the year as a result of current market challenges, they still remain at relatively low levels.

All components of income before income tax expense discussed below are net of NCI.Noninterest income decreased $103 million to $505 million in 2022.

It is common for an early-stage client’s remaining liquidity to fall temporarily below the threshold for a pass-rated credit during its capital-raising period for a new round of funding.

As of December 31, 2022, we have identified the following risks to credit quality: (i) pressured public and private markets, (ii) larger Growth Stage, Innovation C&I and Cash Flow Dependent — SLBO loan sizes and (iii) exposure from CRE loans.(i) Pressured public and private markets - Prolonged market volatility may impact the performance of the Technology and Life Science/Healthcare portfolio.

Other market risks include foreign currency exchange risk and equity price risk (including the effect of competition on product pricing).

The 22 bps increase was primarily due to the increase in our performing loans reserve rate, which was a result of the deterioration of current and forecasted economic conditions, as well as continued loan growth.

Net loss attributable to NCI of $63 million for the year ended December 31, 2022, was driven primarily by net losses on investment securities (including carried interest allocation) from unrealized valuation decreases of our managed funds of funds portfolio and our SVB Securities funds.

Despite these challenging market conditions, we continued to deliver healthy results during 2022.

Annual net interest income grew by 41%, driven by higher interest rates and average fixed income investment securities balances as well as strong loan growth even while funding costs increased as a result of the imbalance between client liquidity inflows from fundraising activities and declines from client cash burn.

2022 was a record for core fee income (a non-GAAP measure) as higher interest rates drove improved client investment fee margins.

Despite pressured public markets, SVB Securities revenue continued to deliver solid results supported by our past investments to expand our investment banking capabilities and expertise.

Continued strong capital, with all capital ratios considered "well-capitalized" under banking regulations.

Healthy credit in an evolving credit environment.- ACL of 0.86% as a percentage of period-end total loans.

Overall, net gains on investment securities and net gains on equity warrant assets were exceptionally strong for 2021.

The increase was reflective of improved fee margins resulting from higher short-term interest rates driven by the 2022 Federal Funds rate increases.

Stronger client balance sheets than in previous cycles - Record venture capital investment throughout 2020-2021 has generally extended clients' runways, bolstered by clients taking steps to reduce cash burn.

These factors place our clients in stronger positions than in previous economic downturns.

In the upward parallel simulated rate shock scenarios, interest income on assets that are tied to variable rate indexes, primarily our 89Table of Contentsvariable rate loans, are expected to benefit our base 12-month NII projections.

The key drivers of SVB Private's performance are discussed below:NII increased by $181 million in 2022, from the comparable 2021 period, as average loans increased driven primarily by the acquisition of Boston Private, as well as strong loan growth, higher yields and higher deposit funding credits, partially offset by higher rates on deposits, average balances of interest-bearing deposits and loan funding charges.

Credit quality remained healthy overall in 2022.

- NII of $4.5 billion (up 41.1%).- Net interest margin of 2.16% (up 14 bps).-

•The higher margin for the year ended December 31, 2022, was due primarily to improved yields reflective of a higher rate environment and the decrease in premium amortization mentioned above, partially offset by the increase in interest-bearing deposit expense and borrowing costs mentioned above.

Noninterest income increased by $401 million in 2022, related primarily to an overall increase in our non-GAAP core fee income.

Overall, our NII increased primarily from higher yields as well as increases in average balances of our fixed income investment securities and loans.

A $1.2 billion increase in interest income on loans to $3.2 billion in 2022, compared to $2.0 billion for the comparable 2021 period.

Net Interest Income (Fully Taxable Equivalent Basis)NII increased by $1.3 billion to $4.5 billion in 2022, compared to $3.2 billion in 2021.

We have made significant progress on legacy contract migration away from LIBOR to alternate reference rates.

Deposit service charges increased primarily driven by higher volumes of our transaction-based fee products.

This reflects a release of reserves driven primarily by the ongoing stability of our HTM securities portfolio during the year.

The increase in interest income on loans was due primarily to an increase in average loan balances of $15.7 billion as well as higher loan interest yields driven by the increase in market rates,◦

These changes were partially offset by higher net interest income driven by higher yields as well as increases in average balances of our fixed income investment securities and loans.

NII from Silicon Valley Bank increased by $1.2 billion in 2022, due primarily from increases in deposit funding credits, yields and average loans, partially offset by higher interest rates on deposits as well as increases in average balances of interest-bearing deposits.

The increase in foreign exchange fees was driven primarily by increases in forward and spot contract commissions reflective of the increased volume of client trades.

Noninterest income increased by $38 million in 2022 primarily due to wealth management and trust fees, which was a new financial statement line item for the third quarter of 2021 as a result of the Boston Private acquisition.

The main factors affecting interest income and interest expense for 2022, compared to 2021, are discussed below:•Interest income for 2022 increased by $2.4 billion primarily due to:◦

$374.9 billion in average total client fund balances (up 13.9%).

These increases in the provision were partially offset by $24 million of recoveries, a $62 million reduction in performing reserves as a result of the ongoing improvement of economic scenarios in our forecast models and a $69 million reduction in provision due to enhancements made in the model.

SIVB

Silicon Valley Bank, a subsidiary of SVB Financial Group, is a U.S.-based high-tech commercial bank. The bank has helped fund more than 30,000 start-ups. SVB is on the list of largest banks in the United States. The bank is also one of the largest providers of financial services to wine producers in Napa Valley.

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The company operates through four segments: Global Commercial Bank, SVB Private Bank, SVB Capital, and SVB Leerink. The Global Commercial Bank segment offers deposit products, such as business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts, as well as merchant, remote capture, lockbox, electronic deposit capture, and fraud control services; credit products and services comprising term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credit, capital call lines of credit, and credit cards; and payment and cash management products and services, including wire transfer and automated clearing house payment, bill pay, debit and credit cards, account analysis, and disbursement, as well as online and mobile banking services. This segment also provides foreign exchange services; export, import, and standby letter of credit; investment services and solutions; investment advisory services; vineyard development loans; and debt fund investment services. The SVB Private Bank segment offers private banking services, such as mortgages, home equity and capital call lines of credit, restricted stock purchase loans, and other secured and unsecured lending products, as well as cash and wealth management services. The SVB Capital segment provides venture capital investment services that manage funds on behalf of third party limited partner investors. The SVB Leerink segment engages in equity and convertible capital markets, mergers and acquisitions, equity research and sales, trading, and investment banking services. It operates through 30 offices in the United States; and offices in Canada, the United Kingdom, Israel, Germany, Denmark, India, Hong Kong, and China. SVB Financial Group was founded in 1983 and is headquartered in Santa Clara, California.

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