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Basel III Standardized Approach Disclosures for the Quarter Ended December 31, 2020

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Basel III Standardized Approach Disclosures for the Quarter Ended December 31, 2020 Basel III Standardized Approach Disclosures For the Quarter Ended December 31, 2020 1 | Page Table of Contents Introduction ................................................................................................................................................................... 3 Basel lll Capital ............................................................................................................................................................... 4 Basel lll Risk-Weighted Assets ........................................................................................................................................ 4 Forward-Looking Statements ......................................................................................................................................... 5 1. Scope of Application .................................................................................................................................................. 5 2. Capital Structure ........................................................................................................................................................ 6 3. Capital Adequacy ....................................................................................................................................................... 7 4. Capital Conservation Buffer ....................................................................................................................................... 9 5. Credit Risk: General Disclosures ................................................................................................................................ 9 6. Counterparty Credit Risk-Related Exposures ........................................................................................................... 11 7. Credit Risk Mitigation .............................................................................................................................................. 12 8. Securitization ........................................................................................................................................................... 12 9. Equities Not Subject to Market Risk Rule ................................................................................................................ 12 10. Interest Rate Risk for Non-Trading Activities ......................................................................................................... 14 Appendix: Disclosure Mapping Table ........................................................................................................................... 15 2 | Page Introduction SVB Financial Group (SVBFG) is a diversified financial services company, as well as a bank holding company and a financial holding company. SVBFG was incorporated in the state of Delaware in March 1999. Through various subsidiaries and divisions, SVBFG offers a diverse set of banking and financial products and services to support clients of all sizes and stages throughout their life cycles. SVBFG offers commercial banking products and services through the principal subsidiary, Silicon Valley Bank (SVB, or the Bank), which is a California-chartered bank founded in 1983 and a member of the Federal Reserve System. Through its subsidiaries, SVB also offers asset management, private wealth management and other investment services. In addition, through SVBFG’s other subsidiaries and divisions, SVBFG offers investment banking and non- banking products and services, such as funds management and M&A advisory services. SVBFG primarily focuses on serving corporate clients in the following industries: technology, life science/healthcare, private equity/venture capital and premium wine. Corporate clients range widely in terms of size and stage of maturity. SVBFG’s other client focus includes providing private banking and wealth management services to consumer clients, including private equity/venture capital professionals and executive leaders of the innovation companies they support. Additionally, SVBFG focuses on cultivating strong relationships with firms within the venture capital and private equity community worldwide, many of which are also clients and may invest in corporate clients. Headquartered in Santa Clara, California, SVBFG operates in centers of innovation in the United States and around the world. As of December 31, 2020, on a consolidated basis, SVBFG had total assets of $115.5 billion, total investment securities of $49.3 billion, total loans, net of unearned income, of $45.2 billion, total deposits of $102.0 billion and total SVBFG stockholders’ equity of $8.2 billion. When this disclosure refers to “SVB Financial Group,” “SVBFG,” the “Company,” or uses similar words, it means SVB Financial Group and all its subsidiaries collectively, including the Bank. When the disclosure refers to “SVB Financial” or the “Parent”, it is referring only to the parent company entity, SVB Financial Group (not including subsidiaries). Information presented in this report and in certain of SVBFG's public filings meets the public disclosure requirements as set forth in 12 C.F.R. §217.63 - Disclosures by Board-regulated institutions, otherwise referred to as the Basel III Standardized Approach Disclosures or the ‘Pillar 3’ disclosures. The ‘Pillar 3” disclosures in this report have been reviewed and approved in accordance with SVBFG’s formal Capital Adequacy disclosure policy, which has been approved by the audit committee of SVBFG’s Board. Management's discussion of the overall corporate risk profile of SVBFG and related management strategies is contained in the 2020 Form 10-K filed with the Securities and Exchange Commission. These Basel III Standardized Approach Disclosures should be read in conjunction with SVBFG’s 2020 Form 10-K and the Consolidated Financial Statements for Holding Companies dated December 31, 2020 (FR Y-9C). The Disclosure Mapping Table, in the appendix section of this document, maps this document to the disclosures under 12 CFR § 217.63. Basel lll Standards Summary SVBFG is subject to final rules published by the Federal Reserve, establishing a comprehensive capital framework for U.S. banking organizations (the Capital Rules) and implementing the Basel lll regulatory capital reforms and changes. “Basel lll” refers to the internationally agreed regulatory framework adopted by the Basel Committee on Banking Supervision (the Basel Committee). See the “Supervision and Regulation” section under Part I, Item 1 of the 2020 Form 10-K for additional information concerning various regulatory capital rules applicable to SVBFG. 3 | Page Links to Referenced Public Filings Filing Link to Filing 2020 Form 10-K https://d18rn0p25nwr6d.cloudfront.net/CIK-0000719739/a4d73acb- d9f8-4272-a4f7-885ca051dde6.pdf Consolidated Financial Statements https://www.ffiec.gov/npw/FinancialReport/ReturnFinancialReportPDF? for Holding Companies dated rpt=FRY9C&id=1031449&dt=20201231 December 31, 2020 (FR Y-9C) Basel lll Capital The Basel lll regulatory capital components are common equity tier 1 (CET1) capital, additional tier 1 capital and tier 2 capital. CET1 capital primarily includes common stockholders’ equity (and related surplus), retained earnings and accumulated other comprehensive income (AOCI) less deductions for certain items such as goodwill, intangibles, deferred tax assets that arise from net operating loss and tax credit carryforwards, gain-on-sale in connection with a securitization exposure, as well as for amounts for certain items that exceed specified thresholds, including mortgage servicing assets, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks, and investments in financial institutions as defined by the Capital Rules. Under the Capital Rules, an institution that is not an advanced approaches institution, such as SVBFG, may make a one-time election to opt out of the requirement to include all components of AOCI in regulatory capital. SVBFG made such an opt out election, which allows it to exclude from capital AOCI related to available-for-sale debt and equity securities, cash flow hedges, defined benefit postretirement plans and held-to-maturity securities. Tier 1 capital consists of CET1 capital in addition to capital instruments that qualify as additional tier 1 capital such as non-cumulative perpetual preferred stock. Tier 2 capital includes certain types of subordinated debt, as well as a qualifying allowance for credit losses. Total capital is the sum of tier 1 and tier 2 capital. In March 2020, the federal banking agencies issued the 2020 Current Expected Credit Losses (CECL) Transition Rule, which provides transitional relief to banking organizations with respect to the impact of CECL on regulatory capital. Under the rule, banking organizations that adopt CECL during the 2020 calendar year, such as SVBFG and SVB, may delay the estimated impact of CECL on regulatory capital for two years, followed by a three-year period to phase out the aggregate capital benefit provided during the initial two-year delay. The rule prescribes a methodology for estimating the impact of differences in credit loss allowances reflected under CECL versus under the incurred loss methodology during the five-year transition period. SVBFG and SVB have elected to use the five-year transition option under the 2020 CECL Transition Rule. Basel lll Risk-Weighted Assets SVBFG uses the Standardized Approach (12 CFR part 217, subpart D) to calculate its Risk-Weighted
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