Stockholders' Equity and EPS (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2021 and 2020:

		Three months ended September 30,				Nine months ended September 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)		(47)		(34)
Related tax expense	Income tax expense	4		5		13		9
Total reclassification adjustment for gains included in net income, net of tax		$	(12)	$	(11)	$	(34)	$	(69)

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 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)	2021		2020		2021		2020
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

Reconciliation of Basic EPS to Diluted EPS

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)	2021		2020		2021		2020
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 ESPP	268		141		278		147
Restricted stock units and awards	530		232		567		163
Weighted average common shares outstanding—diluted	58,521		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

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 nine months ended September 30, 2021 and 2020:

	Three months ended September 30,		Nine months ended September 30,
(Shares in thousands)	2021	2020	2021	2020
Stock options	56	319	31	269
Restricted stock units	—	55	—	83
Total	56	374	31	352

Schedule of Stock by Class

The following table summarizes our preferred stock at September 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	$	0.98
Series B	4.100% Fixed-Rate Non-Cumulative Perpetual Preferred Stock	750		739		7,500	0.001		1/100th	1,000		21.98
Series C	4.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock	1,000		985		10,000	0.001		1/100th	1,000		10.22

Schedule of Stockholders Equity

The following table summarizes the changes in our consolidated equity for the three months ended September 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 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