IBOS member Silicon Valley Bank, SVB Financial Group, has announced their financial results for the second quarter ended 30 June 2016, in a report released on 21 July 2016.
Consolidated net income available to common stockholders for the second quarter of 2016 was $93.0 million, or $1.78 per diluted common share, compared to $79.2 million, or $1.52 per diluted common share, for the first quarter of 2016, and $86.1 million, or $1.66per diluted common share, for the second quarter of 2015. Consolidated net income available to common stockholders for the six months ended June 30, 2016 was $172.1 million, or $3.30 per diluted common share, compared to $174.7 million, or $3.37 per diluted common share, for the comparable 2015 period. For the three and six months ended June 30, 2016, consolidated net income available to common stockholders included pre-tax net gains on sales of fixed income securities of $12.4 million and $13.8 million, respectively.
“We saw solid performance in our core business in the second quarter, with strong loan growth, stable credit quality, modest improvements in VC-related gains, and an improved outlook for loan growth,” said Greg Becker, President and CEO of SVB Financial Group. “While softness in the VC markets continues to pressure our early-stage loan portfolio, we believe the impacts will be manageable and we believe we are positioned for solid growth for the second half of the year.”
Highlights of our second quarter 2016 results (compared to first quarter 2016, unless otherwise noted) included:
- Average loan balances of $18.2 billion, an increase of $1.2 billion (or 7.0 percent).
- Average investment securities, excluding non-marketable and other securities, of $21.8 billion, a decrease of $1.6 billion (or 6.7 percent).
- Average total client funds (consisting of both on-balance sheet deposits and off-balance sheet client investment funds) of $81.0 billion, a decrease of $0.7 billion with average on balance sheet deposits decreasing by $1.1 billion (or 2.8 percent), offset by average off-balance sheet client investment funds increasing by $0.4 billion (or 1.0 percent).
- Net interest income (fully taxable equivalent basis) of $283.6 million, an increase of $1.9 million (or 0.7 percent).
- Net interest margin of 2.73 percent, an increase of 6 basis points.
- Provision for loan losses of $36.3 million, compared to $33.3 million.
- Gains on investment securities of $23.3 million, compared to losses of $4.7 million. Non-GAAPgains on investment securities, net of noncontrolling interests, were $21.6 million, compared to losses of $2.0 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures”.)
- Gains on equity warrant assets of $5.1 million, compared to $6.6 million.
- Noninterest income of $112.8 million, an increase of $26.6 million (or 30.9 percent). Non GAAP core fee income decreased $2.1 million (or 2.7 percent) to $74.5 million. (See non GAAP reconciliation under the section “Use of Non-GAAP Financial Measures”.
- Noninterest expense of $200.4 million, a decrease of $3.7 million (or 1.8 percent).
Access the full report, via SVBs website, here.