SANTA CLARA, Calif. — April 26, 2018 — SVB Financial Group (NASDAQ: SIVB) today announced financial results for the first quarter ended March 31, 2018.
Consolidated net income available to common stockholders for the first quarter of 2018 was $195.0 million, or $3.63 per diluted common share, compared to $117.2 million, or $2.19 per diluted common share, for the fourth quarter of 2017 and $101.5 million, or $1.91 per diluted common share, for the first quarter of 2017. The first quarter of 2018 results included net losses of $22.2 million, on a pre-tax basis, from the sales of shares from our exercised Roku, Inc. ("Roku") equity warrants.
"The first quarter marked a tremendous start to the year, with better-than-expected performance in nearly every part of the business and a significantly improved outlook for 2018," said Greg Becker, President and CEO of SVB Financial Group. "Our effective execution across all of our initiatives, together with the exceptional liquidity being deployed in the innovation ecosystem, drove outstanding growth on and off the balance sheet; and we saw significant additional benefits from higher interest rates and lower taxes, as well as continued solid credit performance."
Highlights of our first quarter 2018 results (compared to fourth quarter 2017, unless otherwise noted) included:
• Average loan balances of $23.8 billion, an increase of $1.4 billion (or 6.1 percent).
• Period-end loan balances of $24.6 billion, an increase of $1.5 billion (or 6.4 percent).
• Average fixed income investment securities of $24.0 billion, an increase of $0.2 billion (or 0.8 percent).
• Period-end fixed income investment securities of $24.6 billion, an increase of $0.8 billion (or 3.6 percent).
• Average total client funds (on-balance sheet deposits and off-balance sheet client investment funds) increased $8.1 billion (or 7.9 percent) to $110.5 billion.
• Period-end total client funds increased $9.1 billion (or 8.7 percent) to $113.7 billion.
• Net interest income (fully taxable equivalent basis) of $421.2 million, an increase of $25.9 million (or 6.5 percent).
• Provision for credit losses of $28.0 million, compared to $22.2 million.
• Net loan charge-offs of $8.8 million, or 15 basis points of average total gross loans (annualized), compared to $12.9 million, or 23 basis points.
• Gains on investment securities of $9.1 million, compared to $15.8 million. Non-GAAP losses on investment securities, net of noncontrolling interests, were $3.8 million, compared to non-GAAPgains on investment securities, net of noncontrolling interests, of $8.0 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”)
• Gains on equity warrant assets of $19.2 million, compared to $12.1 million.
• Noninterest income of $155.5 million, an increase of $3.3 million (or 2.1 percent). Non-GAAP core fee income increased $8.6 million (or 8.1 percent) to $115.0 million. (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”)
• Noninterest expense of $265.4 million, an increase of $1.4 million (or 0.5 percent).