Profile: SVB Financial Group (SIVB.OQ)
20 Dec 2013
SVB Financial Group (SVBFG), incorporated on March 22, 1999, is a diversified financial services company, as well as a bank holding company and financial holding company. The Company operates in three segments: Global Commercial Bank, SVB Private Bank and SVB Capital. Through its subsidiaries and divisions, the Company offers a range of banking and financial products and services to clients across the United States, as well as in international entrepreneurial markets. It offers commercial banking products and services through its subsidiary, Silicon Valley Bank (the Bank), which is a state-chartered bank. Through its subsidiaries, the Bank also offers brokerage, investment advisory and asset management services. Through its other subsidiaries and divisions, it also offers non-banking products and services, such as funds management, venture capital/private equity investments, business valuation and equity management services. It operates through 28 offices in the United States, as well as offices internationally in the People’s Republic of China, India, Israel and the United Kingdom.
As of December 31, 2012, the Company’s Investment securities totaled $12.5 billion. Its investment securities portfolio consists of both an available-for-sale securities portfolio, which represents interest-earning investment securities, and a non-marketable securities portfolio. Its available-for-sale securities portfolio is a fixed income investment portfolio. Its non-marketable securities portfolio primarily represents investments in venture capital funds, debt funds and private portfolio companies. Available-for-sale securities totaled $11.3 billion at December 31, 2012. Non-marketable securities were $1.2 billion at December 31, 2012. As of December 31, 2012, it had total deposits of $19.2 billion.
Global Commercial Bank
The Company’s Commercial Bank products and services are provided by the Bank and its subsidiaries to commercial clients in the technology, venture capital/private equity, life science and cleantech industries. The Bank provides solutions to the financial needs of commercial clients through lending, deposit products, cash management services, global banking and trade products and services, and investment services. It also serves the needs of its non-United States clients with global banking products, including loans, deposits and global finance, in key international entrepreneurial markets, where applicable. Through lending products and services, the Bank extends loans and other credit facilities to commercial clients. These loans are often secured by clients' assets. Lending products and services include traditional term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credit, capital call lines of credit and credit cards.
The Bank's deposit and cash management products and services provide commercial clients with short- and long-term cash management solutions. Deposit products include traditional deposit and checking accounts, certificates of deposit, money market accounts and sweep accounts. In connection with deposit services, the Bank provides lockbox and merchant services that facilitate timely depositing of checks and other payments to clients' accounts. Cash management products and services include wire transfer and automated clearing house payment services to enable clients to transfer funds quickly. Additionally, the cash management services unit provides collection services, disbursement services, electronic funds transfers, and online banking.
The Bank's global banking and trade products and services facilitate clients' global finance and business needs. These products and services include foreign exchange services that allow commercial clients to manage their foreign currency needs and risks through the purchase and sale of currencies, swaps and hedges on the global inter-bank market. To facilitate clients' international trade, the Bank offers a range of loan and credit facilities guaranteed by the Export-Import Bank of the United States. The Bank also offers letters of credit, including export, import, and standby letters of credit, to enable clients to ship and receive goods globally. The Bank and its subsidiaries offer a range of investment services and solutions to its clients that enable them to effectively manage their assets. Through its broker-dealer subsidiary, SVB Securities, the Bank offers clients access to investments in third party money market mutual funds and fixed-income securities. Through its registered investment advisory subsidiary, SVB Asset Management, the Bank offers investment advisory services, including outsourced treasury services, with customized cash portfolio management and reporting.
SVB Specialty Lending provides banking products and services to its wine industry clients, including vineyard development loans, as well as community development loans made as part of its responsibilities under the Community Reinvestment Act. SVB Analytics provides equity valuation services to private companies and venture capital/private equity firms. Debt Fund Investments include its investments in debt funds in which the Company are a strategic investor: Gold Hill funds, which provide secured debt to private companies of all stages, and Partners for Growth funds, which provide secured debt primarily to mid-stage and late-stage companies.
SVB Private Bank
SVB Private Bank is the private banking division of the Bank, which provides a range of personal financial solutions for consumers. Its clients are primarily venture capital/private equity professionals. The Company offers a customized suite of private banking services, including mortgages, home equity lines of credit, restricted stock purchase loans, capital call lines of credit, and other secured and unsecured lending. The Company also helps its private banking clients meet their cash management needs by providing deposit account products and services, including checking, money market, certificates of deposit accounts, online banking, credit cards and other personalized banking services.
SVB Capital is the venture capital investment arm of SVB Financial Group, which focuses primarily on funds management. SVB Capital manages approximately $1.5 billion of funds, largely venture capital funds, primarily on behalf of third party limited partner investors, and on a more limited basis, SVB Financial Group. The SVB Capital family of funds is comprised of funds of funds and direct venture funds (or co-investment funds). SVB Capital generates income for the Company primarily through management fees, carried interest arrangements and returns through the Company's investments in the funds.
SVB Financial Group
3003 Tasman Drive
SANTA CLARA CA 95054-1191