Exhibit 99.1‌‌‌‌‌‌‌

3003 Tasman Drive, Santa Clara, CA 95054 Contact:

www.svb.com Meghan O'Leary

Investor Relations

For release at 1:00 P.M. (Pacific Time) (408) 654-6364

July 27, 2017 NASDAQ: SIVB

SVB FINANCIAL GROUP ANNOUNCES 2017 SECOND QUARTER FINANCIAL RESULTS‌

SANTA CLARA, Calif. - July 27, 2017 - SVB Financial Group (NASDAQ: SIVB) today announced financial results for the second quarter ended June 30, 2017.

Consolidated net income available to common stockholders for the second quarter of 2017 was $123.2 million, or

$2.32 per diluted common share, compared to $101.5 million, or $1.91 per diluted common share, for the first quarter of 2017 and $93.0 million, or $1.78 per diluted common share, for the second quarter of 2016. Consolidated net income available to common stockholders for the six months ended June 30, 2017 was $224.7 million, or $4.22 per diluted common share, compared to $172.1 million, or $3.30 per diluted common share, for the comparable 2016 period.

"Our strong earnings growth in the second quarter was driven by higher net interest income, increased warrant gains, strong client funds growth, and solid credit," said Greg Becker, President and CEO of SVB Financial Group. "Our client activity and pace of new client acquisitions remain robust, notwithstanding intense competition both from banks and non-banks and a lack of clarity on potential tax and regulatory reform. We see healthy momentum as we enter the second half of the year and, despite some adjustments to our outlook, remain positive about our growth prospects for 2017 and beyond."

Highlights of our second quarter 2017 results (compared to first quarter 2017, unless otherwise noted) included:

  • Average loan balances of $20.5 billion, an increase of $0.4 billion (or 2.2 percent).

  • Period-end loan balances of $21.0 billion, an increase of $0.6 billion (or 2.7 percent).

  • Average fixed income investment securities of $21.5 billion, an increase of $0.4 billion (or 1.8 percent).

  • Period-end fixed income investment securities of $22.0 billion, an increase of $1.0 billion (or 4.8 percent).

  • Average total client funds (on-balance sheet deposits and off-balance sheet client investment funds) increased

$5.1 billion (or 6.0 percent) to $91.2 billion, with average off-balance sheet client investment funds increasing by

$3.0 billion (or 6.5 percent) and average on-balance sheet deposits increasing by $2.1 billion (or 5.5 percent).

  • Period-end total client funds increased $6.9 billion (or 7.8 percent) to $94.4 billion, with period-end off-balance sheet client investment funds increasing by $5.5 billion (or 11.8 percent) and period-end on-balance sheet deposits increasing by $1.4 billion (or 3.4 percent).

  • Net interest income (fully taxable equivalent basis) of $343.2 million, an increase of $32.9 million (or 10.6 percent).

  • Provision for credit losses1 of $15.8 million, compared to $30.7 million.

  • Gains on investment securities of $17.6 million, compared to $16.0 million. Non-GAAP gains on investment securities, net of noncontrolling interests, were $8.2 million, compared to $9.5 million. (See non-GAAP reconciliation under the section "Use of Non-GAAP Financial Measures.")

  • Gains on equity warrant assets of $10.8 million, compared to $6.7 million.

  • Noninterest income of $128.5 million, an increase of $10.8 million (or 9.2 percent). Non-GAAP core fee income increased $4.7 million (or 5.7 percent) to $87.3 million. (See non-GAAP reconciliation under the section "Use of Non-GAAP Financial Measures.")

  • Noninterest expense of $251.2 million, an increase of $13.6 million (or 5.7 percent).

  • Income tax expense included a $7.0 million, and a $6.1 million, benefit for the second and first quarters of 2017, respectively, related to new accounting guidance, adopted in the first quarter of 2017, for the tax impact associated with excess tax benefits related to employee share-based compensation. (See "Income Tax Expense" for further details.)

(1) As of the first quarter of 2017, our consolidated statements of income have been modified from prior periods' presentation to conform to the current period presentation to reflect our provision for loan losses and provision for unfunded credit commitments together as our "provision for credit losses". In prior periods, our provision for unfunded credit commitments was reported separately as a component of noninterest expense.

Second Quarter 2017 Summary Three months ended Six months ended

(Dollars in millions, except share data, employees and ratios)

June 30,

2017

March 31,

2017

December 31,

2016

September 30,

2016

June 30,

2016

June 30,

2017

June 30,

2016

Income statement:

Diluted earnings per common share (1) $ 2.32

$ 1.91

$ 1.89

$ 2.12

$ 1.78

$ 4.22

$ 3.30

Net income available to common

stockholders (1) 123.2

101.5

99.5

111.1

93.0

224.7

172.1

Net interest income 342.7

310.0

296.6

289.2

283.3

652.7

564.8

Provision for credit losses (2) 15.8

30.7

16.5

20.0

36.7

46.5

70.2

Noninterest income 128.5

117.7

113.5

144.1

112.8

246.2

198.9

Noninterest expense 251.2

237.6

235.2

220.8

199.9

488.9

403.8

Non-GAAP core fee income (3) 87.3

82.6

84.6

80.5

74.5

169.8

151.0

Non-GAAP noninterest income, net of

noncontrolling interests (3) 119.0

111.1

109.1

139.5

111.2

230.1

200.0

Non-GAAP noninterest expense, net of

noncontrolling interests (3) 251.0

237.5

234.9

220.7

199.7

488.5

403.7

Fully taxable equivalent:

Net interest income (4)

$ 343.2

$ 310.3

$ 296.9

$ 289.4

$ 283.6

$ 653.5

$ 565.4

Net interest margin

3.00%

2.88%

2.73%

2.75%

2.73%

2.94%

2.70%

Balance sheet:

Average total assets $ 47,549.4

$ 45,301.0

$ 44,933.7

$ 43,451.3

$ 43,370.0

$ 46,431.4

$ 43,780.1

Average loans, net of unearned income 20,508.5

20,069.3

19,260.7

18,647.2

18,199.3

20,290.1

17,605.8

Average available-for-sale securities 12,393.1

12,550.3

12,505.1

12,743.7

13,399.3

12,471.2

14,046.0

Average held-to-maturity securities 9,128.4

8,600.2

7,730.5

8,003.8

8,382.8

8,865.8

8,520.8

Average noninterest-bearing demand

deposits 34,629.1

32,709.4

32,663.8

30,522.3

30,342.4

33,674.5

30,781.0

Average interest-bearing deposits 7,509.6

7,249.1

7,033.7

7,387.4

7,817.5

7,380.1

7,933.1

Average total deposits 42,138.6

39,958.5

39,697.4

37,909.8

38,160.0

41,054.6

38,714.0

Average long-term debt 780.2

795.6

795.9

796.2

796.5

787.9

796.6

Period-end total assets 48,400.4

46,413.3

44,683.7

43,274.0

43,132.7

48,400.4

43,132.7

Period-end loans, net of unearned income 20,976.5

20,427.5

19,899.9

19,112.3

18,833.8

20,976.5

18,833.8

Period-end available-for-sale securities 12,071.1

12,384.0

12,620.4

12,665.7

13,058.6

12,071.1

13,058.6

Period-end held-to-maturity securities 9,938.4

8,615.7

8,427.0

7,791.9

8,200.4

9,938.4

8,200.4

Period-end non-marketable and other

securities 630.7

635.6

622.6

625.2

664.1

630.7

664.1

Period-end noninterest-bearing demand

deposits 35,046.4

33,587.9

31,975.5

31,029.0

30,287.8

35,046.4

30,287.8

Period-end interest-bearing deposits 7,418.9

7,491.8

7,004.4

7,160.4

7,308.7

7,418.9

7,308.7

Period-end total deposits 42,465.3

41,079.7

38,979.9

38,189.4

37,596.6

42,465.3

37,596.6

Off-balance sheet:

Average client investment funds

$ 49,109.4

$ 46,130.2

$ 44,966.8

$ 43,105.5

$ 42,883.3

$ 47,619.8

$ 42,677.5

Period-end client investment funds

51,897.5

46,434.8

45,797.8

43,343.7

43,072.4

51,897.5

43,072.4

Total unfunded credit commitments

16,786.8

16,082.3

16,743.2

16,297.1

15,502.5

16,786.8

15,502.5

Earnings ratios:

Return on average assets (annualized)(5)

1.04%

0.91%

0.88%

1.02%

0.86%

0.98%

0.79%

Return on average SVBFG stockholders' equity (annualized) (6)

12.75

11.03

10.77

12.32

10.83

11.91

10.22

Asset quality ratios:

Allowance for loan losses as a % of total

gross loans 1.12% 1.18% 1.13% 1.25% 1.29% 1.12% 1.29%

loans

0.93

0.94

0.94

1.03

0.98

0.93

0.98

Gross charge-offs as a % of average total

gross loans (annualized)

0.49

0.28

0.52

0.52

0.45

0.39

0.53

Net charge-offs as a % of average total

gross loans (annualized)

0.44

0.25

0.44

0.48

0.43

0.34

0.46

Other ratios:

GAAP operating efficiency ratio (7)

53.32%

55.57%

57.35%

50.95%

50.48%

54.39%

52.88%

Non-GAAP operating efficiency ratio (3)

54.32

56.35

57.87

51.45

50.58

55.28

52.75

SVBFG CET 1 risk-based capital ratio

13.05

13.05

12.80

12.75

12.43

13.05

12.43

Bank CET 1 risk-based capital ratio

12.59

12.75

12.65

12.77

12.57

12.59

12.57

Allowance for loan losses for performing loans as a % of total gross performing

SVBFG total risk-based capital ratio

14.39

14.45

14.21

14.22

13.92

14.39

13.92

Bank total risk-based capital ratio

13.59

13.80

13.66

13.83

13.65

13.59

13.65

SVBFG tier 1 leverage ratio

8.40

8.51

8.34

8.35

8.08

8.40

8.08

Bank tier 1 leverage ratio

7.66

7.81

7.67

7.74

7.56

7.66

7.56

Period-end loans, net of unearned income, to deposits ratio

49.40

49.73

51.05

50.05

50.09

49.40

50.09

Average loans, net of unearned income,

to average deposits ratio

48.67

50.23

48.52

49.19

47.69

49.42

45.48

Book value per common share (8)

$ 74.02

$ 71.80

$ 69.71

$ 69.02

$ 67.38

$ 74.02

$ 67.38

Other statistics:

Average full-time equivalent employees

2,372

2,345

2,303

2,255

2,182

2,358

2,171

Period-end full-time equivalent employees

2,380

2,347

2,311

2,280

2,188

2,380

2,188

  1. Included in diluted earnings per common share and net income available to common stockholders for the three months ended March 31, 2017, and for the three and six months ended June 30, 2017, are tax benefits recognized associated with the adoption of Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting in the first quarter of 2017. This guidance was adopted on a prospective basis with no changes to prior period amounts. (See "Income Tax Expense" for further details).

  2. As of the first quarter of 2017, our consolidated statements of income have been modified from prior periods' presentation to conform to the current period presentation to reflect our provision for loan losses and provision for unfunded credit commitments together as our "provision for credit losses". In prior periods, our provision for unfunded credit commitments was reported separately as a component of noninterest expense.

  3. To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use certain non-GAAP measures. A reconciliation of these non-GAAP measures to GAAP is provided at the end of this release under the section "Use of Non-GAAP Financial Measures."

  4. Interest income on non-taxable investments is presented on a fully taxable equivalent basis using the federal statutory income tax rate of 35.0 percent. The taxable equivalent adjustments were $0.5 million for the quarter ended June 30, 2017 and $0.3 million for each of the quarters ended March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016. The taxable equivalent adjustments were $0.8 million and $0.6 million for the six months ended June 30, 2017 and June 30, 2016, respectively.

  5. Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and year-to-date average assets.

  6. Ratio represents annualized consolidated net income available to common stockholders divided by quarterly and year-to-date average SVBFG stockholders' equity.

  7. Ratio is calculated by dividing noninterest expense by total net interest income plus noninterest income.

  8. Book value per common share is calculated by dividing total SVBFG stockholders' equity by total outstanding common shares.

    Net Interest Income and Margin

    Net interest income, on a fully taxable basis, was $343.2 million for the second quarter of 2017, compared to $310.3 million for the first quarter of 2017. The $32.9 million increase from the first quarter of 2017 to the second quarter of 2017, was attributable primarily to the following:

    • An increase in interest income from loans of $22.9 million to $250.2 million for the second quarter of 2017. The increase was reflective primarily of the impact of rising interest rates, loan growth and one extra day in the quarter (compared to the first quarter of 2017). Overall loan yields increased 30 basis points to 4.89 percent, due to an increase in gross loan yields of 21 basis points to 4.25 percent, which includes four basis points for interest recoveries from nonperforming loans, and an increase in loan fee yields of nine basis points. The increase in gross loan yields is reflective primarily of the benefit of interest rate increases. Loan fee yields increased $5.8 million primarily as a result of higher income from loan prepayments.

    • An increase in interest income from our fixed income investment securities in our available-for-sale ("AFS") and held-to-maturity ("HTM") portfolios of $6.1 million to $96.9 million for the second quarter of 2017. Net interest income from our fixed income investment securities portfolio increased $7.0 million, offset by a net increase of $0.9 million in premium amortization expense. The increase in net interest income is primarily reflective of continued reinvestment of maturing fixed income investment securities at higher rates as well as an increase in average fixed income investments of $0.4 billion, driven by the growth in average deposits. Our overall yields from investment securities increased seven basis points to 1.81 percent, primarily attributable to the higher reinvestment rates, offset by a three basis point yield impact from the increase in net premium amortization expense.

    • An increase in interest income from short-term investment securities of $4.2 million for the second quarter of 2017. The increase was due primarily to an increase of $1.2 billion in average interest-earning Federal Reserve cash balances as a result of a $2.2 billion increase in average deposit balances during the quarter and from the impact of the recent increases in the target federal funds rate.

SVB Financial Group published this content on 27 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2017 20:37:04 UTC.

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