Question
December 31, September 30, December 31, December 31, December 31, (Dollars in millions, except share data) 2022 2022 2021 2022 2021 Interest income: Loans $
December 31, September 30, December 31, December 31, December 31,
(Dollars in millions, except share data) 2022 2022 2021 2022 2021
Interest income: | ||||||||||
Loans | $ | 1,119 | $ | 865 | $ | 544 | $ | 3,208 | $ | 1,966 |
Investment securities: | ||||||||||
Taxable | 495 | 545 | 392 | 2,113 | 1,199 | |||||
Non-taxable | 35 | 35 | 33 | 140 | 106 | |||||
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities | 107 | 76 | 6 | 212 | 18 | |||||
Total interest income | 1,756 | 1,521 | 975 | 5,673 | 3,289 | |||||
Interest expense: | ||||||||||
Deposits | 514 | 249 | 21 | 862 | 62 | |||||
Borrowings | 204 | 74 | 15 | 326 | 48 | |||||
Total interest expense | 718 | 323 | 36 | 1,188 | 110 | |||||
Net interest income | 1,038 | 1,198 | 939 | 4,485 | 3,179 | |||||
Provision for credit losses | 141 | 72 | 48 | 420 | 123 | |||||
Net interest income after provision for credit losses | 897 | 1,126 | 891 | 4,065 | 3,056 | |||||
Noninterest income: | ||||||||||
Gains/(loss) on investment securities, net | (86) | (127) | 100 | (285) | 761 | |||||
Gains on equity warrant assets, net | 28 | 40 | 69 | 148 | 560 | |||||
Client investment fees | 149 | 119 | 20 | 386 | 75 | |||||
Wealth management and trust fees | 20 | 19 | 22 | 83 | 44 | |||||
Foreign exchange fees | 69 | 74 | 73 | 285 | 262 | |||||
Credit card fees | 36 | 37 | 38 | 150 | 131 | |||||
Deposit service charges | 32 | 32 | 30 | 126 | 112 | |||||
Lending related fees | 29 | 20 | 21 | 94 | 76 | |||||
Letters of credit and standby letters of credit fees | 14 | 15 | 12 | 57 | 51 | |||||
Investment banking revenue | 127 | 75 | 124 | 420 | 459 | |||||
Commissions | 25 | 24 | 21 | 98 | 79 | |||||
Other | 47 | 31 | 31 | 166 | 128 | |||||
Total noninterest income | 490 | 359 | 561 | 1,728 | 2,738 | |||||
Noninterest expense: | ||||||||||
Compensation and benefits | 644 | 563 | 597 | 2,293 | 2,015 | |||||
Professional services | 125 | 117 | 110 | 480 | 392 | |||||
Premises and equipment | 80 | 71 | 54 | 269 | 178 | |||||
Net occupancy | 27 | 25 | 23 | 101 | 83 | |||||
Business development and travel | 23 | 21 | 11 | 85 | 24 | |||||
FDIC and state assessments | 18 | 25 | 15 | 75 | 48 | |||||
Merger-related charges | 11 | 7 | 27 | 50 | 129 | |||||
Other | 80 | 63 | 65 | 268 | 201 | |||||
Total noninterest expense | 1,008 | 892 | 902 | 3,621 | 3,070 | |||||
Income before income tax expense | 379 | 593 | 550 | 2,172 | 2,724 | |||||
Income tax expense | 74 | 175 | 142 | 563 | 651 | |||||
Continued on the following page | ||||||||||
Net income before noncontrolling interests and dividends | 305 | 418 | 408 | 1,609 | 2,073 | |||||
Net (income)/loss attributable to noncontrolling interests | 10 | 51 | (14) | 63 | (240) | |||||
Preferred stock dividends | (40) | (40) | (23) | (163) | (63) | |||||
Net income available to common stockholders | $ | 275 | $ | 429 | $ | 371 $ | 1,509 | $ | 1,770 | |
Earnings per common sharebasic | $ | 4.65 | $ | 7.26 | $ | 6.32 $ | 25.58 | $ | 31.74 | |
Earnings per common sharediluted | 4.62 | 7.21 | 6.22 | 25.35 | 31.25 | |||||
Weighted average common shares outstandingbasic | 59,112,507 | 59,096,090 | 58,702,618 | 58,987,169 | 55,762,874 | |||||
Weighted average common shares outstandingdiluted | 59,454,723 | 59,549,402 | 59,623,961 | 59,515,565 | 56,637,591 |
December 31, September 30, December 31,
(Dollars in millions, except par value and share data) 2022 2022 2021
Assets: | ||||||
Cash and cash equivalents | $ | 13,803 | $ | 13,968 | $ | 14,586 |
Available-for-sale securities, at fair value (cost $28,602, $29,502 and $27,370, respectively) | 26,069 | 26,711 | 27,221 | |||
Held-to-maturity securities, at amortized cost and net of allowance for credit losses of $6, $6 and $7 (fair value of $76,169, $77,370 and $97,227), respectively | 91,321 | 93,286 | 98,195 | |||
Non-marketable and other equity securities | 2,664 | 2,595 | 2,543 | |||
Investment securities | 120,054 | 122,592 | 127,959 | |||
Loans, amortized cost | 74,250 | 72,129 | 66,276 | |||
Allowance for credit losses: loans | (636) | (557) | (422) | |||
Net loans | 73,614 | 71,572 | 65,854 | |||
Premises and equipment, net of accumulated depreciation and amortization | 394 | 346 | 270 | |||
Goodwill | 375 | 375 | 375 | |||
Other intangible assets, net | 136 | 142 | 160 | |||
Lease right-of-use assets | 335 | 349 | 313 | |||
Accrued interest receivable and other assets | 3,082 | 3,523 | 1,791 | |||
Total assets | $ | 211,793 | $ | 212,867 | $ | 211,308 |
Liabilities and total equity: | ||||||
Liabilities: | ||||||
Noninterest-bearing demand deposits | $ | 80,753 | $ | 93,988 | $ | 125,851 |
Interest-bearing deposits | 92,356 | 82,831 | 63,352 | |||
Total deposits | 173,109 | 176,819 | 189,203 | |||
Short-term borrowings | 13,565 | 13,552 | 71 | |||
Lease liabilities | 413 | 429 | 388 | |||
Other liabilities | 3,041 | 2,889 | 2,467 | |||
Long-term debt | 5,370 | 3,368 | 2,570 | |||
Total liabilities | 195,498 | 197,057 | 194,699 | |||
SVBFG stockholders equity: | ||||||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; 383,500 shares, 383,500 shares and 383,500 shares issued and outstanding, respectively | 3,646 | 3,646 | 3,646 | |||
Common stock, $0.001 par value, 150,000,000 shares authorized; 59,171,883 shares, 59,104,124 shares and 58,748,469 shares issued and outstanding, respectively | ||||||
Additional paid-in capital | 5,318 | 5,272 | 5,157 | |||
Retained earnings | 8,951 | 8,676 | 7,442 | |||
Accumulated other comprehensive (loss) income | (1,911) | (2,085) | (9) | |||
Total SVBFG stockholders equity | 16,004 | 15,509 | 16,236 | |||
Noncontrolling interests | 291 | 301 | 373 | |||
Total equity | 16,295 | 15,810 | 16,609 | |||
Total liabilities and total equity | $ | 211,793 | $ | 212,867 | $ | 211,308 |
1. Perform vertical analyses of the income statement and balance sheet for the year ended December 31, 2022.
Income statement items should be presented as a percentage of net interest income (after provision for credit losses)
Balance sheet items should be presented as a percentage of total assets.
2. Perform horizontal analyses of the income statement and balance sheet for the year ended December 31, 2022. Present each financial statement item as a year-over-year percentage change using 2021 as the base year as follows:
(Current Balance - Prior Year Balance)/Prior Year Balance
Note- be careful of negative balances. If a prior years balance is negative, you will need to use the absolute value of the prior years balance as your denominator.
3. Calculate the following ratios for the year ended December 31, 2022:
Return on average assets
Return on equity
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