Parent Company Only Condensed Financial Information

The condensed balance sheets of SVB Financial at December 31, 2015 and 2014, and the related condensed statements of income, comprehensive income and cash flows for 2015, 2014 and 2013, are presented below.

Condensed Balance Sheets



	December 31,
(Dollars in thousands)	2015		2014
Assets:
Cash and cash equivalents	$	377,013	$	314,236
Investment securities	250,257		229,604
Net loans	9,859		16,684
Other assets	224,748		154,680
Investment in subsidiaries:
Bank subsidiary	3,059,045		2,399,411
Nonbank subsidiaries	106,896		149,558
Total assets	$	4,027,818	$	3,264,173

Liabilities and SVBFG stockholders’ equity:
3.50% Senior Notes	$	346,667	$	—
5.375% Senior Notes	347,016		346,477
7.0% Junior Subordinated Debentures	54,669		54,845
Other liabilities	81,332		49,779
Total liabilities	$	829,684	$	451,101
SVBFG stockholders’ equity	3,198,134		2,813,072
Total liabilities and SVBFG stockholders’ equity	$	4,027,818	$	3,264,173

Condensed Statements of Income



	Year ended December 31,
(Dollars in thousands)	2015			2014			2013
Interest income	$	964		$	2,534		$	3,545
Interest expense	(34,169		)	(21,863		)	(24,408		)
Dividend income from bank subsidiary	—			—			10,000
Gains on derivative instruments, net	55,477			66,604			47,421
Gains on investment securities, net	39,447			8,750			15,238
Impairment loss on cumulative foreign currency translation losses	—			(9,564		)	—
General and administrative expenses	(54,822		)	(53,912		)	(54,389		)
Income tax expense	(14,448		)	(15,038		)	(15,824		)
Loss before net income of subsidiaries	$	(7,551	)	$	(22,489	)	$	(18,417	)
Equity in undistributed net income of nonbank subsidiaries	44,591			37,009			58,075
Equity in undistributed net income of bank subsidiary	306,864			249,350			174,859
Net income available to common stockholders	$	343,904		$	263,870		$	214,517

Condensed Statements of Comprehensive Income



	Year ended December 31,
(Dollars in thousands)	2015			2014		2013
Net income available to common stockholders	$	343,904		$	263,870	$	214,517
Other comprehensive (loss) income, net of tax:
Foreign currency translation (losses) gains	(1,492		)	3,012		(3,128		)
Unrealized holding (losses) gains on securities available for sale	(2,041		)	1,232		(1,449		)
Equity in other comprehensive (losses) income of subsidiaries	(23,767		)	87,224		(152,740		)
Other comprehensive (loss) income, net of tax	(27,300		)	91,468		(157,317		)
Total comprehensive income	$	316,604		$	355,338	$	57,200

Condensed Statements of Cash Flows



	Year ended December 31,
(Dollars in thousands)	2015			2014			2013
Cash flows from operating activities:
Net income attributable to SVBFG	$	343,904		$	263,870		$	214,517
Adjustments to reconcile net income to net cash used for operating activities:
Gains on derivative instruments, net	(55,477		)	(66,604		)	(47,421		)
Gains on investment securities, net	(39,447		)	(8,750		)	(15,238		)
Net income of bank subsidiary	(306,864		)	(249,350		)	(184,859		)
Net income on nonbank subsidiaries	(44,591		)	(37,009		)	(58,075		)
Cash dividends from bank subsidiary	—			—			10,000
Amortization of share-based compensation	32,239			29,545			25,413
(Increase) decrease in other assets	(30,638		)	46,512			(9,802		)
Increase in other liabilities	28,985			25,697			1,506
Impairment loss on SVBIF sale transaction	—			9,564			—
Other, net	470			513			(3,368		)
Net cash (used for) provided by operating activities	(71,419		)	13,988			(67,327		)

Cash flows from investing activities:
Net decrease in investment securities from purchases, sales and maturities	31,380			15,469			70,479
Net decrease (increase) in loans	6,825			(11,893		)	4,078
Increase in investment in bank subsidiary	(378,286		)	(432,804		)	(21,469		)
Decrease in investment in nonbank subsidiaries	88,834			44,714			9,925
Net cash (used for) provided by investing activities	(251,247		)	(384,514		)	63,013

Cash flows from financing activities:
Tax benefit from stock exercises	16,602			9,602			6,826
Proceeds from issuance of common stock, ESPP and ESOP	22,410			22,146			46,569
Net proceeds from public equity offering	—			434,866			—
Net proceeds from issuance of long-term debt	346,431			—			—
Net cash provided by financing activities	385,443			466,614			53,395
Net increase in cash and cash equivalents	62,777			96,088			49,081
Cash and cash equivalents at beginning of period	314,236			218,148			169,067
Cash and cash equivalents at end of period	$	377,013		$	314,236		$	218,148