Parent Company Only Condensed Financial Information

The condensed balance sheets of SVB Financial at December 31, 2016 and 2015, and the related condensed statements of income, comprehensive income and cash flows for 2016, 2015 and 2014, are presented below:

Condensed Balance Sheets



	December 31,
(Dollars in thousands)	2016		2015
Assets:
Cash and cash equivalents	$	500,014	$	377,013
Investment securities	244,603		250,257
Net loans	13,337		9,859
Other assets	197,220		224,748
Investment in subsidiaries:
Bank subsidiary	3,423,427		3,059,045
Nonbank subsidiaries	113,928		106,896
Total assets	$	4,492,529	$	4,027,818

Liabilities and SVBFG stockholders’ equity:
3.50% Senior Notes	$	346,979	$	346,667
5.375% Senior Notes	347,586		347,016
7.0% Junior Subordinated Debentures	54,493		54,669
Other liabilities	100,917		81,332
Total liabilities	$	849,975	$	829,684
SVBFG stockholders’ equity	3,642,554		3,198,134
Total liabilities and SVBFG stockholders’ equity	$	4,492,529	$	4,027,818

Condensed Statements of Income



	Year ended December 31,
(Dollars in thousands)	2016			2015			2014
Interest income	$	690		$	964		$	2,534
Interest expense	(35,316		)	(34,169		)	(21,863		)
Dividend income from bank subsidiary	40,000			—			—
Gains on derivative instruments, net	35,608			55,477			66,604
Gains on investment securities, net	20,644			39,447			8,750
Fund management fees and other noninterest income (1)	24,197			17,772			13,960
Impairment loss on cumulative foreign currency translation losses	—			—			(9,564		)
General and administrative expenses	(55,139		)	(54,822		)	(53,912		)
Income tax benefit (expense)	423			(14,448		)	(15,038		)
Income (loss) before net income of subsidiaries	$	31,107		$	10,221		$	(8,529	)
Equity in undistributed net income of nonbank subsidiaries (1)	11,949			26,819			23,049
Equity in undistributed net income of bank subsidiary	339,629			306,864			249,350
Net income available to common stockholders	$	382,685		$	343,904		$	263,870


(1)	Our condensed statements of income include a new line item to disclose income from fund management fees and other noninterest income, which was incorrectly reported in undistributed net income of nonbank subsidiaries. The correction of this immaterial error had no impact on net income available to common stockholders in our consolidated statements of income.

Condensed Statements of Comprehensive Income



	Year ended December 31,
(Dollars in thousands)	2016		2015			2014
Net income available to common stockholders	$	382,685	$	343,904		$	263,870
Other comprehensive income (loss), net of tax:
Foreign currency translation gains (losses)	3,071		(1,492		)	3,012
Changes in unrealized holding gains (losses) on securities available-for-sale	654		(2,041		)	1,232
Equity in other comprehensive income (losses) of subsidiaries	4,301		(23,767		)	87,224
Other comprehensive income (loss), net of tax	8,026		(27,300		)	91,468
Total comprehensive income	$	390,711	$	316,604		$	355,338

Condensed Statements of Cash Flows



	Year ended December 31,
(Dollars in thousands)	2016			2015			2014
Cash flows from operating activities:
Net income attributable to SVBFG	$	382,685		$	343,904		$	263,870
Adjustments to reconcile net income to net cash used for operating activities:
Gains on derivative instruments, net	(35,608		)	(55,477		)	(66,604		)
Gains on investment securities, net	(20,644		)	(39,447		)	(8,750		)
Net income of bank subsidiary	(379,629		)	(306,864		)	(249,350		)
Net income on nonbank subsidiaries (1)	(11,949		)	(26,819		)	(23,049		)
Cash dividends from bank subsidiary	40,000			—			—
Amortization of share-based compensation	35,494			32,239			29,545
Decrease (increase) in other assets	35,699			(30,638		)	46,512
Increase in other liabilities	15,293			28,985			25,697
Impairment loss on SVBIF sale transaction	—			—			9,564
Other, net	708			470			513
Net cash provided by (used for) operating activities	62,049			(53,647		)	27,948

Cash flows from investing activities:
Net decrease in investment securities from purchases, sales and maturities	54,737			31,380			15,469
Net (increase) decrease in loans	(3,478		)	6,825			(11,893		)
Increase in investment in bank subsidiary	(14,738		)	(378,286		)	(432,804		)
Decrease in investment in nonbank subsidiaries (1)	1,924			71,062			30,754
Net cash provided by (used for) investing activities	38,445			(269,019		)	(398,474		)

Cash flows from financing activities:
Proceeds from issuance of common stock, ESPP and ESOP	26,147			22,410			22,146
Tax effect from stock exercises	(3,640		)	16,602			9,602
Net proceeds from public equity offering	—			—			434,866
Net proceeds from issuance of long-term debt	—			346,431			—
Net cash provided by financing activities	22,507			385,443			466,614
Net increase in cash and cash equivalents	123,001			62,777			96,088
Cash and cash equivalents at beginning of period	377,013			314,236			218,148
Cash and cash equivalents at end of period	$	500,014		$	377,013		$	314,236


(1)	Our condensed statements of cash flows reflect a correction to the nonbank subsidiaries related line items in net cash provided by (used for) operating and investing activities. The correction of this immaterial error had no impact on cash flows in our consolidated statements of cash flows.