WDecision ArchiveEvidence before outcome
Part AOutcome blind

Funding Liquidity · Decision packet

SVB funding, liquidity and interest-rate resilience at May 9, 2022

What measured balance-sheet, liquidity and funding actions should the joint Board Risk and Finance Committee authorize after the first-quarter filing?

Knowledge cutoffMay 9, 2022 at 12:59 PM

Recommendation

Authorize a staged resilience program across duration, liquidity and funding. Do not preserve the current asset-liability posture solely because rising-rate simulations show earnings upside, and do not force an indiscriminate securities sale. Use board gates for EVE, nonparallel shocks, realized capital effects, operationally drawable liquidity and correlated deposit runoff. judgment.svb.cutoff.staged-resilience source · svb.cutoff.q1-2022-10q source · svb.cutoff.2021-10k source · svb.cutoff.fomc-may-2022

At March 31, SVB reported USD 98.707 billion of HTM securities at amortized cost and USD 91.667 billion at fair value. Its fixed-income portfolio duration was 4.9 years and HTM duration was 5.2 years. A static plus-200-basis-point simulation showed EVE down 30.4 percent while NII rose 21.0 percent. These are competing sensitivities, not a forecast that one offsets the other. table.svb.cutoff.securities table.svb.cutoff.rate-risk claim.svb.cutoff.nii-upside source · svb.cutoff.q1-2022-10q

Funding and liquidity

SVB estimated USD 166.0 billion of U.S.-office deposits above the FDIC insurance limit at year-end 2021 and separately disclosed USD 16.1 billion of foreign deposits outside U.S. insurance. Do not add these into a synthetic “runnable” number. Insurance status, beneficial ownership, operational control and correlated client behavior are different dimensions. The filing also said no material portion came from one depositor, which is useful disconfirming evidence but does not test network correlation. claim.svb.cutoff.uninsured-definition table.svb.cutoff.deposit-insurance source · svb.cutoff.2021-10k

Reported contingent channels included USD 7.0 billion supported at FHLB and USD 8.0 billion under repurchase agreements. Require live draw tests, haircut and encumbrance schedules, and time-to-cash measures before counting nominal capacity in a stress plan. claim.svb.cutoff.reported-liquidity table.svb.cutoff.liquidity-capacity source · svb.cutoff.q1-2022-10q

Accounting and capital boundary

AFS securities are carried at fair value through a separate equity component; HTM securities are carried at amortized cost and ordinary fair-value changes are not reported. AOCI, the disclosed HTM fair-value position, stockholders' equity, tangible equity and regulatory capital are not interchangeable. The packet therefore preserves the source labels and does not manufacture an adjusted equity total. claim.svb.cutoff.securities-accounting claim.svb.cutoff.capital-definitions source · svb.cutoff.2021-10k source · svb.cutoff.q1-2022-10q

Decision gates

  • Reduce duration through swaps, paydowns and selected rebalancing subject to a hard realized-capital gate.
  • Re-run EVE and NII with nonparallel paths and dynamic deposit behavior; do not rely on the static balance sheet or 60 percent deposit-beta assumption without validation.
  • Pre-position and test FHLB, discount-window, federal-funds and repo access.
  • Measure flows by depositor controller and common funding channel, without assuming all uninsured deposits leave at once.
  • Review progress monthly through the Risk and Finance Committees and escalate any inner-threshold or outer-limit breach. claim.svb.cutoff.governance-duty

The authority and source inputs for these gates come from the contemporaneous committee charters, deposit disclosures, Q1 liquidity schedule and rate-risk simulations; the charters establish assigned duties, not proof of operating effectiveness. source · svb.cutoff.risk-charter source · svb.cutoff.finance-charter source · svb.cutoff.q1-2022-10q

Disconfirming evidence and abstention

Q1 remained profitable, management expected NIM of 2.10–2.20 percent, cash was USD 20.606 billion, and contingent capacity existed. Those facts support controlled staging and explicit reversal conditions. They do not eliminate the EVE, duration or funding questions. table.svb.cutoff.q1-performance source · svb.cutoff.q1-2022-results source · svb.cutoff.q1-2022-10q

Abstain from a target price or public-equity recommendation: there is no cutoff market price, full cash-flow reconstruction, verified position mandate or approved deterministic valuation model. judgment.svb.cutoff.target-price-abstention source · svb.cutoff.q1-2022-10q

As reported at the cutoff

Financial and operating evidence

6 tables

Values are carried from the checked research packet with their original units, periods, scope, and reporting status. “Not established” is preserved rather than estimated.

Securities accounting positionsAs Reported At Cutoff · USD_millions
MeasureMarch 31 2022
Cash and cash equivalents20,6061
AFS cost27,2871
AFS fair value25,9911
HTM amortized cost98,7071
HTM fair value91,6671
USD · USD_millionsReported values remain strings; no browser-side recalculation.
Reported balance sheet and capitalAs Reported At Cutoff · USD_millions
MeasureMarch 31 2022
Total assets220,3551
Total deposits198,1341
Stockholders' equity15,9801
AOCI-7601
USD · USD_millionsReported values remain strings; no browser-side recalculation.
Year-end deposit insurance definitionsAs Reported At Cutoff · USD_millions
MeasureDecember 31 2021
Estimated uninsured U.S.-office deposits above FDIC limit166,0001
Foreign deposits outside U.S. insurance regime16,1001
USD · USD_millionsReported values remain strings; no browser-side recalculation.
First-quarter reported performanceAs Reported At Cutoff · mixed_as_labeled
MeasureQ1 2022
Net income available to common, USD millions4721
Net interest income, USD millions1,0821
Net interest margin, percent2.131
USD · mixed_as_labeledReported values remain strings; no browser-side recalculation.
Reported duration and parallel-shock sensitivitiesAs Reported At Cutoff · mixed_as_labeled
MeasureMarch 31 2022
Total fixed-income duration, years4.91
HTM duration, years5.21
EVE change at +200bp, percent-30.41
NII change at +200bp, percent211
mixed_as_labeledReported values remain strings; no browser-side recalculation.
Selected issuer-reported contingent borrowing capacityAs Reported At Cutoff · USD_millions
MeasureMarch 31 2022
FHLB supported available7,0001
Master repurchase available8,0001
USD · USD_millionsReported values remain strings; no browser-side recalculation.

Lineage

Sources available at the cutoff

7 records

Only these records were permitted inside the outcome-blind packet. Links lead to the publisher or filing archive; raw retrieved documents and excerpts are not republished here.

T1

src.svb.cutoff.2021-10k

SVB Financial Group Form 10-K for year ended December 31, 2021

U.S. Securities and Exchange Commission · Mar 1, 2022

Regulatory FilingPrimaryContemporaneous

Used for: Cutoff-valid business model, deposit composition, uninsured-deposit estimate and year-end financial position · Accounting definitions and reported duration, liquidity and interest-rate-risk evidence

T1

src.svb.cutoff.2022-proxy

SVB Financial Group 2022 definitive proxy statement

U.S. Securities and Exchange Commission · Mar 4, 2022

Regulatory FilingPrimaryContemporaneous

Used for: Board allocation of enterprise risk, treasury and risk-appetite oversight · Contemporaneous governance structure and committee membership context

T1

src.svb.cutoff.q1-2022-results

SVB Financial Group first-quarter 2022 results and Form 8-K

U.S. Securities and Exchange Commission · Apr 21, 2022

Regulatory FilingPrimaryContemporaneous

Used for: Management's first-quarter performance narrative, NIM outlook and stated rate assumptions · Contemporaneous description of client-funds conditions and asset-liability positioning

T2

src.svb.cutoff.risk-charter

SVB Financial Group Board Risk Committee Charter

SVB Financial Group · Apr 22, 2022

Issuer DisclosurePrimaryContemporaneous

Used for: Exact Risk Committee duties for risk appetite, liquidity, contingency funding and interest-rate-risk oversight

T2

src.svb.cutoff.finance-charter

SVB Financial Group Board Finance Committee Charter

SVB Financial Group · Apr 22, 2022

Issuer DisclosurePrimaryContemporaneous

Used for: Exact Finance Committee duties for balance-sheet, capital, stress-testing and liquidity oversight jointly with Risk Committee

T1

src.svb.cutoff.fomc-may-2022

Federal Reserve issues FOMC statement

Board of Governors of the Federal Reserve System · May 4, 2022

Court Or Government RecordPrimaryContemporaneous

Used for: Cutoff-valid policy-rate path and balance-sheet-runoff signal for bank rate scenarios

T1

src.svb.cutoff.q1-2022-10q

SVB Financial Group Form 10-Q for quarter ended March 31, 2022

U.S. Securities and Exchange Commission · May 6, 2022

Regulatory FilingPrimaryContemporaneous

Used for: Last cutoff-valid balance sheet, AFS and HTM marks, duration, liquidity capacity and capital metrics · Issuer EVE and NII sensitivity scenarios with explicit static-balance-sheet and deposit-behavior assumptions

Decision recorded?

Now test it against the outcome.

Reveal Part B