XML 20 R10.htm IDEA: XBRL DOCUMENT v3.21.2
Stockholders' Equity and EPS
 9 Months Ended
Sep. 30, 2021
Equity and Earnings Per Share [Abstract]  
Stockholders' Equity and EPS Stockholders' Equity and EPS
AOCI
The following table summarizes the items reclassified out of AOCI into the Consolidated Statements of Income (unaudited) for the three and nine months ended September 30, 2021 and 2020:
 Three months ended September 30, Nine months ended September 30,
(Dollars in millions)Income Statement Location2021202020212020
Reclassification adjustment for gains on AFS securities included in net incomeGains on investment securities, net$— $— $— $(61)
Related tax expenseIncome tax expense— — — 17 
Reclassification adjustment for gains on cash flow hedges included in net incomeNet interest income(16)(16)(47)(34)
Related tax expenseIncome tax expense4 5 13 9 
Total reclassification adjustment for gains included in net income, net of tax$(12)$(11)$(34)$(69)
The table below summarizes the activity relating to net gains and losses on our cash flow hedges included in AOCI for the three and nine months ended September 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 $59 million in AOCI at September 30, 2021, related to unrealized gains will be reclassified out of AOCI and recognized in net income.
 Three months ended September 30, Nine months ended September 30,
(Dollars in millions)2021202020212020
Balance, beginning of period, net of tax
$107 $153 $129 $(2)
Net increase in fair value, net of tax— — — 168 
Net realized gain reclassified to net income, net of tax(12)(12)(34)(25)
Balance, end of period, net of tax
$95 $141 $95 $141 
EPS
Basic EPS is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issuable for stock options and restricted stock unit awards outstanding under our 2006 Equity Incentive Plan and our ESPP. Potentially dilutive common shares are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive. The following is a reconciliation of basic EPS to diluted EPS for the three and nine months ended September 30, 2021 and 2020:
 Three months ended September 30, Nine months ended September 30,
(Dollars in millions except per share amounts, shares in thousands)2021202020212020
Numerator:
Net income available to common stockholders$365 $442 $1,399 $803 
Denominator:
Weighted average common shares outstanding—basic 57,723 51,773 54,772 51,640 
Weighted average effect of dilutive securities:
Stock options and ESPP268 141 278 147 
Restricted stock units and awards530 232 567 163 
Weighted average common shares outstanding—diluted58,521 52,146 55,617 51,950 
Earnings per common share:
Basic$6.33 $8.53 $25.54 $15.55 
Diluted 6.24 8.47 25.16 15.46 

The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation due to the antidilutive effect for the three and nine months ended September 30, 2021 and 2020:
 Three months ended September 30, Nine months ended September 30,
(Shares in thousands)2021202020212020
Stock options56 319 31 269 
Restricted stock units— 55 — 83 
Total56 374 31 352 
Common Stock
On March 22, 2021, to support the continued growth of our balance sheet, we issued and sold 2,000,000 shares of common stock at a price of $500.00 per share. We received net proceeds of $972 million after deducting underwriting discounts and commissions.
On April 14, 2021, the Company issued and sold 300,000 additional shares of common stock under the full exercise of the underwriters' over-allotment option from our March 22, 2021 underwritten public offering. We received additional net proceeds of $146 million after deducting underwriting discounts and commissions.
On July 1, 2021, the Company issued 1,887,981 shares of common stock for the acquisition of Boston Private at an exchange ratio of 0.0228 SIVB shares per Boston Private share.
On August 12, 2021, the Company issued and sold 2,227,000 shares of common stock at a price of $564.00 per share. We received net proceeds of $1.2 billion after deducting underwriting discounts and commissions.
Preferred Stock
On December 9, 2019, the Company issued 5.25% Non-Cumulative Perpetual Series A Preferred Stock (''Series A Preferred Stock''). The public offering consists of 14,000,000 depositary shares, each representing a 1/40th ownership interest in a shares of the Series A preferred stock with $0.001 par value and liquidation preference of $1,000 per share, or $25 per depositary share. The Series A Preferred Stock is redeemable at the Company’s option, subject to all applicable regulatory approvals, on or after February 15, 2025.
On February 2, 2021, the Company issued 4.10% Non-Cumulative Perpetual Series B Preferred Stock (''Series B Preferred Stock''). The public offering consists of 750,000 depositary shares, each representing a 1/100th ownership interest in shares of Series B Preferred Stock with $0.001 par value and liquidation preferences of $100,000 per share, or $1,000 per depositary share. Dividends, if approved and declared by the Board of Directors, are payable quarterly, in arrears, at a rate per annum equal to (i) 4.10 percent from the original issue date to, but excluding, February 15, 2031 and (ii) for the February 15, 2031 dividend date and during each subsequent ten-year period, the ten-year treasury rate (calculated three business days prior to each reset date as the five-day average of the yields on actively traded U.S. treasury securities adjusted to constant maturity, for ten-year maturities) plus 3.064 percent.
On May 13, 2021, the Company issued 4.00% Non-Cumulative Perpetual Series C Preferred Stock (''Series C Preferred Stock''). The public offering consists of 1,000,000 depositary shares, each representing a 1/100th ownership interest in shares of Series C Preferred Stock with $0.001 par value and liquidation preferences of $100,000 per share, or $1,000 per depositary share. Dividends, if approved and declared by the Board of Directors, are payable quarterly, in arrears, at a rate per annum equal to (i) 4.000 percent from the original issue date to, but excluding, May 15, 2026, and (ii) for the May 15, 2026 dividend date and during each subsequent five-year period, the five-year treasury rate (calculated three business days prior to each reset date as the five-day average of the yields on actively traded U.S. treasury securities adjusted to constant maturity, for five-year maturities) plus 3.202 percent.
The following table summarizes our preferred stock at September 30, 2021:
SeriesDescriptionAmount outstanding (in millions)Carrying value
(in millions)		Shares issued and outstandingPar ValueOwnership interest per depositary shareLiquidation preference per depositary share2021 dividends paid per depositary share
Series A5.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock$350 $340 350,000$0.001 
1/40th
$25 $0.98 
Series B4.100% Fixed-Rate Non-Cumulative Perpetual Preferred Stock750 739 7,5000.001 
1/100th
1,000 21.98 
Series C4.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock1,000 985 10,0000.001 
1/100th
1,000 10.22 
Consolidated Statement of Changes in Equity
The following table summarizes the changes in our consolidated equity for the three months ended September 30, 2021 and 2020:
 Preferred
Stock		Common StockAdditional
Paid-in Capital		Retained
Earnings		Accumulated
Other
Comprehensive Income		Total SVBFG
Stockholders’ Equity		Noncontrolling InterestsTotal 
Equity
(Dollars in millions, except share data)SharesAmount
Balance at June 30, 2020$340 51,740,714 $— $1,523 $4,842 $614 $7,319 $149 $7,468 
Common stock issued under employee benefit plans and ESOP, net of restricted stock cancellations— 47,258 — 4 — — 4 — 4 
Net income— — — — 446 — 446 28 474 
Capital calls and distributions, net— — — — — — — (3)(3)
Other comprehensive income, net of tax— — — — — 6 6 — 6 
Share-based compensation, net— — — 22 — — 22 — 22 
Dividends on preferred stock— — — — (4)— (4)— (4)
Balance at September 30, 2020$340 51,787,972 $— $1,549 $5,284 $620 $7,793 $174 $7,967 
Balance at June 30, 2021$2,064 54,530,307 $— $2,755 $6,706 $142 $11,667 $300 $11,967 
Common stock issued under employee benefit plans and ESOP, net of restricted stock cancellations— 32,195 — 2 — — 2 — 2 
Issuance of Common Stock— 2,227,000 — 1,245 — — 1,245 — 1,245 
Issuance of common stock for the acquisition of Boston Private— 1,887,981 — 1,060 — — 1,060 — 1,060 
Net income — — — — 387 — 387 88 475 
Capital calls and distributions, net— — — — — — — (19)(19)
Other comprehensive income, net of tax— — — — — (77)(77)— (77)
Share-based compensation, net— — — 38 — — 38 — 38 
Dividends on preferred stock — — — — (22)— (22)— (22)
Balance at September 30, 2021$2,064 58,677,483 $— $5,100 $7,071 $65 $14,300 $369 $14,669