SVB Financial Group (NASDAQ:SIVB) Q1 2019 Earnings Conference Call Transcript

Apr 25, 2019 • 06:00 pm ET

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SVB Financial Group (NASDAQ:SIVB) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the SVB Financial Group Q1 2019 Earnings Call. My name is Aaron, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) Please note that this conference is being recorded.

I will now turn the call over to Meghan O'Leary. Ms. O'Leary, you may begin.

Executive
Meghan O'Leary

Thank you, Aaron, and thank you everyone for joining us today. Our President and CEO, Greg Becker, and our CFO, Dan Beck are here to talk about our first quarter 2019 financial results, and will be joined by other members of management for the Q&A.

Our current earnings release is available on the Investor Relations section of our website at svb.com. We'll be making forward-looking statements during this call, and actual results may differ materially. We encourage you to review the disclaimer in our earnings release dealing with forward-looking information, which applies equally to statements made in this call.

In addition, some of our discussion may include references to non-GAAP financial measures. Information about those measures including reconciliation to GAAP measures may be found in our SEC filings and in our earnings release.

I'd also like to mention that beginning in July, we intend to change the format of our earnings calls, rather than reading our prepared remarks and then conducting Q&A. We will issue a short document with our commentary on the quarter in conjunction with the issuance of our earnings release, prior to our call. We ask that you review the document before the call begins, as we plan to start the Q&A immediately.

We hope this will make the timing of our call a little more manageable for you. Given that it occurs late in the day during what we know is a long couple of weeks to most of you.

And now, I'll turn the call over to Greg Becker.

Executive
Greg Becker

Thank you, Meghan, and thanks, everyone for joining us today. We had an excellent first quarter of 2019, continuing some of the key trends we saw in 2018. A strong venture capital and private equity environment driving substantial client liquidity and continued strength in our core business. Plus the added benefit of a positive shift in momentum in the public markets.

We delivered earnings per share of $5.44 and net income of $289 million. These results reflect healthy loan and deposit growth, continued stable credit quality, robust core fee income and strong gains from warrants and VC related investments. While the success of our interest bearing deposit initiatives put pressure on net interest income during the quarter, our liquidity and clients liquidity remains exceptionally strong.

We continued to perform well across the business and are seeing solid momentum in both client activity and our pipeline. Highlights for the first quarter included annualized growth of 14% in average loans, 9% in average total client funds, including healthy growth and interest bearing deposits. 20% core fee income growth excluding $64 million of revenue related