Parent Company Only Condensed Financial Information

The condensed balance sheets of SVB Financial at December 31, 2013 and 2012, and the related condensed statements of income, comprehensive income and cash flows for 2013, 2012 and 2011, are presented below.

Condensed Balance Sheets



	December 31,
(Dollars in thousands)	2013		2012
Assets:
Cash and cash equivalents	$	218,148	$	169,067
Investment securities	234,398		252,858
Net loans	4,791		8,869
Other assets	136,897		116,596
Investment in subsidiaries:
Bank subsidiary	1,639,024		1,592,987
Nonbank subsidiaries	160,271		115,427
Total assets	$	2,393,529	$	2,255,804

Liabilities and SVBFG stockholders’ equity:
5.375% Senior Notes	$	348,209	$	347,995
7.0% Junior Subordinated Debentures	55,020		55,196
Other liabilities	24,030		22,058
Total liabilities	427,259		425,249
SVBFG stockholders’ equity	1,966,270		1,830,555
Total liabilities and SVBFG stockholders’ equity	$	2,393,529	$	2,255,804

Condensed Statements of Income



	Year ended December 31,
(Dollars in thousands)	2013			2012			2011
Interest income	$	3,545		$	3,282		$	2,819
Interest expense	(24,408		)	(23,037		)	(27,252		)
Dividend income from bank subsidiary	10,000			—			—
Gains on derivative instruments, net	47,421			17,289			34,654
Gains on investment securities, net	15,238			15,329			16,432
General and administrative expenses	(54,389		)	(66,812		)	(71,355		)
Income tax (expense) benefit	(15,824		)	12,200			7,468
Loss before net income of subsidiaries	(18,417		)	(41,749		)	(37,234		)
Equity in undistributed net income of nonbank subsidiaries	58,075			21,457			20,013
Equity in undistributed net income of bank subsidiary	176,195			195,395			189,123
Net income available to common stockholders	$	215,853		$	175,103		$	171,902

Condensed Statements of Comprehensive Income



	Year ended December 31,
(Dollars in thousands)	2013			2012			2011
Net income available to common stockholders	$	215,853		$	175,103		$	171,902
Other comprehensive (loss) income, net of tax:
Foreign currency translation losses	(3,128		)	(114		)	(4,929		)
Unrealized holding (losses) gains on securities available for sale	(1,449		)	2,074			(319		)
Equity in other comprehensive (loss) income of subsidiaries	(152,740		)	21,194			66,504
Other comprehensive (loss) income, net of tax	(157,317		)	23,154			61,256
Total comprehensive income	$	58,536		$	198,257		$	233,158

Condensed Statements of Cash Flows



	Year ended December 31,
(Dollars in thousands)	2013			2012			2011
Cash flows from operating activities:
Net income attributable to SVBFG	$	215,853		$	175,103		$	171,902
Adjustments to reconcile net income to net cash used for operating activities:
Gains on derivative instruments, net	(47,421		)	(17,289		)	(34,654		)
Gains on investment securities, net	(15,238		)	(15,329		)	(16,432		)
Net income of bank subsidiary	(186,195		)	(195,395		)	(189,123		)
Net income on nonbank subsidiaries	(58,075		)	(21,457		)	(20,013		)
Cash dividends from bank subsidiary	10,000			—			—
Amortization of share-based compensation	25,413			21,861			18,221
(Increase) decrease in other assets	(11,901		)	5,463			21,926
Increase in other liabilities	1,506			3,952			2,936
Other, net	(1,269		)	2,273			2,510
Net cash used for operating activities	(67,327		)	(40,818		)	(42,727		)

Cash flows from investing activities:
Net decrease (increase) in investment securities from purchases, sales and maturities	70,479			11,833			(22,821		)
Net decrease (increase) in loans	4,078			2,034			(4,211		)
(Increase) decrease in investment in bank subsidiary	(21,469		)	12,180			(12,592		)
Decrease (increase) in investment in nonbank subsidiaries	9,925			13,012			(3,161		)
Net cash provided by (used for) investing activities	63,013			39,059			(42,785		)

Cash flows from financing activities:
Principal payments of other long-term debt	—			(1,222		)	(4,179		)
Payments for settlement of 3.875% Convertible Notes	—			—			(250,000		)
Tax benefit from stock exercises	6,826			5,581			6,342
Proceeds from issuance of common stock and ESPP	46,569			29,282			36,873
Net cash provided by (used for) financing activities	53,395			33,641			(210,964		)
Net increase (decrease) in cash and cash equivalents	49,081			31,882			(296,476		)
Cash and cash equivalents at beginning of year	169,067			137,185			433,661
Cash and cash equivalents at end of year	$	218,148		$	169,067		$	137,185