Stockholders' Equity and EPS (Tables)

6 Months Ended

Jun. 30, 2021

Equity and Earnings Per Share [Abstract]

Reclassification out of Accumulated Other Comprehensive Income

The following table summarizes the items reclassified out of AOCI into the Consolidated Statements of Income (unaudited) for the three and six months ended June 30, 2021 and 2020:

		Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	Income Statement Location	2021		2020		2021		2020
Reclassification adjustment for gains on AFS securities included in net income	Gains on investment securities, net	$	—	$	—	$	—	$	(61)
Related tax expense	Income tax expense	—		—		—		17
Reclassification adjustment for gains on cash flow hedges included in net income	Net interest income	(16)		(16)		(31)		(18)
Related tax expense	Income tax expense	5		4		9		5
Total reclassification adjustment for gains included in net income, net of tax		$	(11)	$	(12)	$	(22)	$	(57)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The table below summarizes the activity relating to net gains and losses on our cash flow hedges included in AOCI for the three and six months ended June 30, 2021 and 2020. Refer to Note 9 — “Derivative Financial Instruments” for additional information regarding the termination of our cash flow hedges during the quarter ended March 31, 2020. Over the next 12 months, we expect that approximately $61 million in AOCI at June 30, 2021, related to unrealized gains will be reclassified out of AOCI and recognized in net income.

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Balance, beginning of period, net of tax	$	118	$	164	$	129	$	(2)
Net increase in fair value, net of tax	—		—		—		168
Net realized gain reclassified to net income, net of tax	(11)		(11)		(22)		(13)
Balance, end of period, net of tax	$	107	$	153	$	107	$	153

Reconciliation of Basic EPS to Diluted EPS

The following is a reconciliation of basic EPS to diluted EPS for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions except per share amounts, shares in thousands)	2021		2020		2021		2020
Numerator:
Net income available to common stockholders	$	502	$	229	$	1,034	$	361
Denominator:
Weighted average common shares outstanding—basic	54,353		51,581		53,272		51,573
Weighted average effect of dilutive securities:
Stock options and ESPP	272		114		274		140
Restricted stock units and awards	527		100		569		135
Weighted average common shares outstanding—diluted	55,152		51,795		54,115		51,848
Earnings per common share:
Basic	$	9.23	$	4.44	$	19.40	$	7.00
Diluted	9.09		4.42		19.10		6.97

Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share

The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation due to the antidilutive effect for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,		Six months ended June 30,
(Shares in thousands)	2021	2020	2021	2020
Stock options	36	288	18	247
Restricted stock units	—	312	44	310
Total	36	600	62	557

Schedule of Stock by Class

The following table summarizes our preferred stock at June 30, 2021:

Series	Description	Amount outstanding (in millions)		Carrying value (in millions)		Shares issued and outstanding	Par Value		Ownership interest per depositary share	Liquidation preference per depositary share		2021 dividends paid per depositary share
Series A	5.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock	$	350	$	340	350,000	$	0.001	1/40th	$	25	$	0.66
Series B	4.100% Fixed-Rate Non-Cumulative Perpetual Preferred Stock	750		739		7,500	0.001		1/100th	1,000		1.17
Series C	4.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock	1,000		985		10,000	0.001		1/100th	1,000		—

Schedule of Stockholders Equity

The following table summarizes the changes in our consolidated equity for the three months ended June 30, 2021 and 2020:

	Preferred Stock		Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total SVBFG Stockholders’ Equity		Noncontrolling Interests		Total  Equity
(Dollars in millions, except share data)			Shares	Amount
Balance at March 31, 2020	$	340	51,490,342	$	—	$	1,489	$	4,613	$	592	$	7,034	$	148	$	7,182
Common stock issued under employee benefit plans and ESOP, net of restricted stock cancellations	—		250,372	—		14		—		—		14		—		14
Net income	—		—	—		—		234		—		234		14		248
Capital calls and distributions, net	—		—	—		—		—		—		—		(13)		(13)
Other comprehensive income, net of tax	—		—	—		—		—		22		22		—		22
Share-based compensation, net	—		—	—		20		—		—		20		—		20
Dividends on preferred stock	—		—	—		—		(5)		—		(5)		—		(5)
Balance at June 30, 2020	$	340	51,740,714	$	—	$	1,523	$	4,842	$	614	$	7,319	$	149	$	7,468
Balance at March 31, 2021	$	1,079	54,001,797	$	—	$	2,591	$	6,204	$	21	$	9,895	$	226	$	10,121
Common stock issued under employee benefit plans and ESOP, net of restricted stock cancellations	—		228,510	—		(5)		—		—		(5)		—		(5)
Issuance of Common Stock	—		300,000	—		146		—		—		146		—		146
Issuance of Preferred Stock	985		—	—		—		—		—		985		—		985
Net income	—		—	—		—		515		—		515		113		628
Capital calls and distributions, net	—		—	—		—		—		—		—		(39)		(39)
Other comprehensive income, net of tax	—		—	—		—		—		121		121		—		121
Share-based compensation, net	—		—	—		28		—		—		28		—		28
Dividends on preferred stock	—		—	—		—		(13)		—		(13)		—		(13)
Other, net	—		—	—		(5)		—		—		(5)		—		(5)
Balance at June 30, 2021	$	2,064	54,530,307	$	—	$	2,755	$	6,706	$	142	$	11,667	$	300	$	11,967