Announcement • May 18
Second Amended Reorganization Plan and Disclosure Statement Filed by SVB Financial Group SVB Financial Group filed a second amended plan of reorganization with related disclosure statement in the US Bankruptcy Court on May 16, 2024. As per the amended plan filed, Other General Unsecured Claims of $180.4 million shall be recovered 93% i.e., $167.77 million and shall receive, if and solely to the extent such Holder is a Qualified Holder, its pro rata share of the NewCo Common Stock subject to dilution by any NewCo Transaction, if and solely to the extent such Holder is a Non-Qualified Holder, Cash in an amount equal to the value of the NewCo Common Stock it would be entitled to receive if it and all holders of Senior Notes Claims and Other General Unsecured Claims were Qualified Holders, and its Pro Rata share of the Class A-2 Trust Units or if such Holder elects on the applicable ballot, the GUC Cash-Out with respect to such Claim. There are no changes in treatment of any other claim class or sources of plan funding. Announcement • May 05
First Amended Reorganization Plan and Disclosure Statement Filed by SVB Financial Group SVB Financial Group filed a first amended plan of reorganization with related disclosure statement in the US Bankruptcy Court on May 3, 2024. As per the amended plan filed, other priority claims are estimated to be in the amount of $0. Senior note claims of $3,329 million shall be recovered between 41%-96% and shall receive its pro rata share of the NewCo Common Stock subject to dilution by any NewCo Transaction, if such holder is a qualified holder, if and solely to the extent such Holder is a Non-Qualified Holder, Cash in an amount equal to the value of the NewCo Common Stock it would be entitled to receive if it were a Qualified Holder, (b) its Pro Rata share of the Class A Trust Units and (c) payment by the Debtor in Cash of the Senior Note Trustee Expenses, to the extent not otherwise paid by the Debtor under the Plan. Other general unsecured claims of $180.4 million shall be recovered between 41%-96% and shall receive, if and solely to the extent such Holder is a Qualified Holder, its pro rata share of the NewCo Common Stock subject to dilution by any NewCo Transaction, if and solely to the extent such Holder is a Non-Qualified Holder, Cash in an amount equal to the value of the NewCo Common Stock it would be entitled to receive if it were a Qualified Holder, and (ii) its Pro Rata share (together with all Holders receiving Distributions of the Class A Trust Units) of the Class A Trust Units; or (b) if such Holder elects on the applicable ballot, the GUC Cash-Out with respect to such Claim. Subordinated note claims of $104.5 million shall be recovered 0%. Preferred equity interests of $3,700 million shall be recovered 0% and shall receive pro rata share of Class C Trust Units. There are no changes in the treatment of any claim class or sources of plan funding. Announcement • Apr 12
Motion for Asset Sale Approved for SVB Financial Group The US Bankruptcy Court gave an order approving the sale of interest in subsidiary of SVB Financial Group on April 10, 2024. The debtor has been authorized to sell its 98.12% of the issued and outstanding limited liability partnership interests of non-debtor SVB Global Services India LLP to First Citizens Global I, Inc. and 1.88% of the issued and outstanding limited liability partnership interests of SVB India to First Citizens Global II, Inc., for purchase price consisting of $0.43 million in cash plus an amount in cash equal to $21.37 million minus an amount up to $8.94 million for any amounts outstanding owed by the debtor and its affiliates to first-citizens and its affiliates contemplated by that certain invoice attached to the purchase agreement as schedule 2.2(d), $3 million of which is to be placed in escrow in accordance with the purchase agreement. The debtor’s assets include issued and outstanding capital of SVB Global Services India LLP. The buyer, First Citizens Global I, Inc., is represented by Gerald F. Roach of Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. as its legal advisor. Announcement • Mar 21
First Citizens BancShares, Inc. (NasdaqGS:FCNC.A) entered into a definitive purchase agreement to acquire Svb Global Services India LLP from SVB Financial Group (OTCPK:SIVB.Q). First Citizens BancShares, Inc. (NasdaqGS:FCNC.A) entered into a definitive purchase agreement to acquire Svb Global Services India LLP from SVB Financial Group (OTCPK:SIVB.Q) on March 18, 2024. The agreement is subject to final approval of the Bankruptcy Court and regulatory approval in India, as well as other customary closing conditions. A hearing to seek required Bankruptcy Court approval is scheduled for April 9, 2024, and the transaction is expected to close shortly thereafter. Announcement • Aug 24
Silicon Valley Bank Announces Executive Changes Silicon Valley Bank (SVB) has announced the appointment of leaders for payments and digital solutions. Martin Murrell had been named head of global payments, while the bank appointed Milton Santiago as new global digital solutions head. Murrell is to oversee teams handling the bank's payments products. He has 25 years of banking experience. Santiago has more than 30 years of experience in the banking industry. Announcement • Jul 26
SVB Financial Group Announces Board Appointments Effective July 24, 2023, the board of directors (the “Board”) of SVB Financial Group (the “Company”) increased the size of the Board from eleven to thirteen directors and appointed Steven G. Panagos and C. Allen Parker to fill the vacancies created by the increase in the size of the Board. The Board also determined that Messrs. Panagos and Parker are independent directors as defined by the listing standards of the Nasdaq Stock Market LLC and has appointed them as members of a newly created special committee and the Board’s Restructuring Committee. C. Allen Parker, 68, has extensive experience in corporate governance, including at financial institutions, that make him a valuable addition to the Board. From July 2020 through July 2022, Mr. Parker was a Senior Advisor to the global consulting firm McKinsey & Co. in its Financial Institutions practice, and he was an executive at Wells Fargo & Company from March 2017 until March 2020. He joined Wells Fargo initially as the General Counsel and was later appointed by the Wells Fargo Board of Directors to be the Interim Chief Executive Officer, a role he held for seven months. He was also a member of the Wells Fargo Board of Directors during that period. Prior to joining Wells Fargo, Mr. Parker was a partner at Cravath, Swaine & Moore LLP, an international law firm. Over his 27 years as a partner at Cravath, he specialized in finance and corporate governance, was a member of the firm’s Corporate Governance and Board Advisory Practice, and served in a variety of firm leadership roles. From January 2013 through December 2016, Mr. Parker served as Cravath’s fifteenth presiding partner. Steven G. Panagos, 61, has extensive corporate transformation and restructuring experience that make him a valuable addition to the Board. As an independent director, Mr. Panagos has led numerous special committees empowered to run, structure, evaluate and transact M&A processes, refinancings, recapitalizations, and special investigations both in court and out of court. Mr. Panagos currently serves as an independent director on the board of directors of several companies, including iMedia Brands Inc. (IMBI). Mr. Panagos was Vice Chairman and Managing Director of the Recapitalization & Restructuring Group at Moelis & Company, from which he retired in June 2019. Prior to his tenure with Moelis & Company, he was a Principal of Panagos Katz Situational Investing, which he founded in February 2008 to invest in the debt of financially distressed companies. Mr. Panagos also spent 20 years with Zolfo Cooper, where he served as National Practice Leader of the Corporate Advisory & Restructuring group. Announcement • Jun 19
The Baupost Group, L.L.C. and management team led by Jeff Leerink entered into a definitive agreement to acquire SVB Securities Holdings LLC from SVB Financial Group (OTCPK:SIVB.Q). The Baupost Group, L.L.C. and management team led by Jeff Leerink entered into a definitive agreement to acquire SVB Securities Holdings LLC from SVB Financial Group (OTCPK:SIVB.Q) on June 15, 2023. Under the terms of the purchase agreement, the bidder group will acquire the investment banking business for a combination of cash, repayment of an intercompany note, the assumption of certain liabilities (including significant deferred compensation obligations), and a 5% equity instrument in the buyer entity. MoffettNathanson LLC, a sell-side research business owned by SVB Financial Group, is not included in the transaction and will remain part of SVB Financial Group. In connection with the management buyout, SVB Securities will be rebranded Leerink Partners. The agreement is subject to final approval of the Bankruptcy Court and regulatory approval, as well as other customary closing conditions. Centerview Partners LLC acted as financial advisor to SVB Financial. Sullivan & Cromwell LLP aced as legal advisor to SVB Financial. Alvarez & Marsal acted as restructuring advisor to SVB Financial. Rothschild & Co US Inc. acted as financial advisor to both management and Baupost Group. Willkie Farr & Gallagher LLP acted as legal advisor to Baupost Group. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to management team. Announcement • Jun 02
SVB Securities Management in Talks for Buyout SVB Securities management is in talks to buy back the investment bank from bankrupt SVB Financial Group (OTCPK:SIVB.Q), according to people familiar with the matter. SVB Securities Chief Executive Officer Jeff Leerink and his team are preparing to announce a deal for the firm in the coming days, pending approval from the US Bankruptcy Court for the Southern District of New York, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and talks could still fall apart. Announcement • May 10
SVB Financial Group announced delayed 10-Q filing On 05/09/2023, SVB Financial Group announced that they will be unable to file their next 10-Q by the deadline required by the SEC. Announcement • May 05
Levi & Korsinsky Notifies SVB Financial Group Investors of A Class Action Lawsuit Levi & Korsinsky, LLP notifies investors in SVB Financial Group of a class action securities lawsuit. The lawsuit seeks to recover losses on behalf of SVB investors who were adversely affected by alleged securities fraud between November 5, 2020 and March 10, 2023. The filed complaint alleges that defendants made false statements and/or concealed that: (1) the Company failed to disclose to investors the risks presented by impending rising interest rates; (2) the Company failed to disclose to investors that, in an environment with high interest rates, SVB would be worse off than banks that did not cater to tech startups and venture capital-backed companies; (3) the Company failed to disclose that, if its investments were negatively affected by rising interest rates, it was particularly susceptible to a bank run; (4) as a result, defendants' public statements were materially false and/or misleading at all relevant times. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 64% After last week's 64% share price decline to Mex$1,937, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Banks industry in Mexico. Total loss to shareholders of 47% over the past three years. Reported Earnings • Mar 01
Full year 2022 earnings released: EPS: US$25.58 (vs US$31.74 in FY 2021) Full year 2022 results: EPS: US$25.58 (down from US$31.74 in FY 2021). Revenue: US$5.79b (flat on FY 2021). Net income: US$1.51b (down 15% from FY 2021). Profit margin: 26% (down from 31% in FY 2021). Net interest margin (NIM): 2.16% (up from 2.02% in FY 2021). Cost-to-income ratio: 58.3% (up from 51.9% in FY 2021). Non-performing loans: 0.18% (up from 0.14% in FY 2021). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Banks industry in Mexico. Over the last 3 years on average, earnings per share has increased by 12% per year and the company’s share price has also increased by 12% per year. Announcement • Feb 10
Silicon Valley Bank Announces Executive Changes Silicon Valley Bank has announced a new leadership. The firm has announced that it has appointed Ashraf Hebela as its new head of Technology Healthcare Banking for North America. He is to take over from Dave Sabow, who the bank had recently appointed as CEO of Silicon Valley Bank UK and Head of EMEA. The firm has also appointed Lewis Hower as head of Startup Banking. Reported Earnings • Jan 20
Full year 2022 earnings released: EPS: US$23.45 (vs US$31.74 in FY 2021) Full year 2022 results: EPS: US$23.45 (down from US$31.74 in FY 2021). Revenue: US$5.79b (flat on FY 2021). Net income: US$1.38b (down 22% from FY 2021). Profit margin: 24% (down from 31% in FY 2021). Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Banks industry in Mexico. Announcement • Jan 20
SVB Financial Group Provides Earnings Guidance for the First Quarter and Full Year of 2023 SVB Financial Group provided earnings guidance for the first quarter and full year of 2023. For the quarter, the company expects Net interest income to be $925 million to $955 million.For the year, the company expects Net interest income of High teens decline compared to 2022. Announcement • Jan 05
SVB Appoints Kim Olson as Chief Risk Officer SVB announced the appointment of Kim Olson as Chief Risk Officer (CRO). In this role, Olson will lead the Risk function and team, developing and maintaining SVB's risk management framework and a culture of risk management across the company. Olson has thirty years of financial services experience. She joins SVB from Sumitomo Mitsui Banking Corporation (SMBC), where she served as the Chief Risk Officer for SMBC in the Americas, and an Executive Officer of SMBC and Sumitomo Mitsui Financial Group. Prior to SMBC, Olson held senior risk management roles at other leading global financial institutions. She also has rating agency experience, as well as experience in professional services advising large- and medium-sized financial institutions on evolving regulations, risk management and stress testing following the 2008 financial crisis. Olson began her career at the Federal Reserve Bank of New York, where over a period of 10 years she held a variety of senior policy, regulatory and examination roles in banking supervision. Olson is based in SVB's New York office. She holds a bachelor's degree in political science from Santa Clara University and a master's degree in public administration from Harvard University. Reported Earnings • Oct 22
Third quarter 2022 earnings released: EPS: US$7.26 (vs US$6.32 in 3Q 2021) Third quarter 2022 results: EPS: US$7.26 (up from US$6.32 in 3Q 2021). Revenue: US$1.49b (down 1.2% from 3Q 2021). Net income: US$429.0m (up 18% from 3Q 2021). Profit margin: 29% (up from 24% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Banks industry in Mexico. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Oct 07
SVB Financial Group to Report Q3, 2023 Results on Oct 19, 2023 SVB Financial Group announced that they will report Q3, 2023 results on Oct 19, 2023 Reported Earnings • Jul 22
Second quarter 2022 earnings released: EPS: US$5.65 (vs US$9.24 in 2Q 2021) Second quarter 2022 results: EPS: US$5.65 (down from US$9.24 in 2Q 2021). Revenue: US$1.33b (down 8.3% from 2Q 2021). Net income: US$333.0m (down 34% from 2Q 2021). Profit margin: 25% (down from 35% in 2Q 2021). The decrease in margin was primarily driven by lower revenue. Over the next year, revenue is forecast to grow 34%, compared to a 29% growth forecast for the industry in Mexico. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 20% per year. Announcement • Jul 08
SVB Financial Group to Report Q1, 2023 Results on Apr 20, 2023 SVB Financial Group announced that they will report Q1, 2023 results on Apr 20, 2023 Reported Earnings • Apr 27
First quarter 2022 earnings released: EPS: US$8.03 (vs US$10.20 in 1Q 2021) First quarter 2022 results: EPS: US$8.03 (down from US$10.20 in 1Q 2021). Revenue: US$1.59b (up 15% from 1Q 2021). Net income: US$472.0m (down 11% from 1Q 2021). Profit margin: 30% (down from 38% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 27%, compared to a 30% growth forecast for the industry in Mexico. Buying Opportunity • Apr 08
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 32%. The fair value is estimated to be Mex$13,018, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 21%. For the next 3 years, revenue is forecast to grow by 18% per annum. Earnings is also forecast to grow by 17% per annum over the same time period. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorated over the past week After last week's 15% share price decline to Mex$11,300, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 8x in the Banks industry in South America. Total returns to shareholders of 17% over the past year. Simply Wall St's valuation model estimates the intrinsic value at Mex$10,494 per share. Reported Earnings • Jan 22
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: US$31.74 (up from US$23.05 in FY 2020). Revenue: US$5.79b (up 55% from FY 2020). Net income: US$1.77b (up 49% from FY 2020). Profit margin: 31% (down from 32% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 13%, compared to a 32% growth forecast for the banks industry in Mexico. Reported Earnings • Oct 23
Third quarter 2021 earnings released: EPS US$6.32 (vs US$8.53 in 3Q 2020) The company reported a mediocre third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: US$1.50b (up 37% from 3Q 2020). Net income: US$365.0m (down 17% from 3Q 2020). Profit margin: 24% (down from 40% in 3Q 2020). The decrease in margin was driven by higher expenses. Reported Earnings • Jul 23
Second quarter 2021 earnings released: EPS US$9.24 (vs US$4.44 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$1.45b (up 78% from 2Q 2020). Net income: US$502.0m (up 119% from 2Q 2020). Profit margin: 35% (up from 28% in 2Q 2020). The increase in margin was driven by higher revenue. Reported Earnings • May 12
First quarter 2021 earnings released: EPS US$10.20 (vs US$2.57 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$1.39b (up 138% from 1Q 2020). Net income: US$532.2m (up 302% from 1Q 2020). Profit margin: 38% (up from 23% in 1Q 2020). The increase in margin was driven by higher revenue. Executive Departure • May 05
Independent Director has left the company On the 23rd of April, John Robinson's tenure as Independent Director ended after 10.8 years in the role. As of December 2020, John personally held 3.02k shares (Mex$22m worth at the time). John is the only executive to leave the company over the last 12 months. Reported Earnings • Apr 26
First quarter 2021 earnings released: EPS US$10.20 (vs US$2.57 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$1.39b (up 138% from 1Q 2020). Net income: US$532.2m (up 302% from 1Q 2020). Profit margin: 38% (up from 23% in 1Q 2020). The increase in margin was driven by higher revenue. Recent Insider Transactions • Mar 04
Independent Chairman of the Board recently sold Mex$52m worth of stock On the 1st of March, Roger Dunbar sold around 5k shares on-market at roughly Mex$10,987 per share. This was the largest sale by an insider in the last 3 months. This was Roger's only on-market trade for the last 12 months. Reported Earnings • Mar 03
Full year 2020 earnings released: EPS US$23.05 (vs US$21.90 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: US$3.78b (up 17% from FY 2019). Net income: US$1.19b (up 4.8% from FY 2019). Profit margin: 32% (down from 35% in FY 2019). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 2.67% (down from 3.51% in FY 2019). Cost-to-income ratio: 55.9% (up from 48.1% in FY 2019). Non-performing loans: 0.23% (down from 0.32% in FY 2019). Analyst Estimate Surprise Post Earnings • Mar 03
Revenue beats expectations Revenue exceeded analyst estimates by 11%. Over the next year, revenue is forecast to grow 6.8%, compared to a 36% growth forecast for the Banks industry in Mexico. Recent Insider Transactions • Jan 30
President of Silicon Valley Bank recently sold Mex$23m worth of stock On the 28th of January, Michael Descheneaux sold around 3k shares on-market at roughly Mex$9,203 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of Mex$63m more than they bought in the last 12 months. Reported Earnings • Jan 23
Full year 2020 earnings released: EPS US$23.05 The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: US$3.78b (up 17% from FY 2019). Net income: US$1.19b (up 4.8% from FY 2019). Profit margin: 32% (down from 35% in FY 2019). The decrease in margin was driven by higher expenses. Analyst Estimate Surprise Post Earnings • Jan 23
Revenue beats expectations Revenue exceeded analyst estimates by 11%. Over the next year, revenue is forecast to grow 7.0%, compared to a 32% growth forecast for the Banks industry in Mexico. Reported Earnings • Jan 22
Full year 2020 earnings released: EPS US$23.38 The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: US$3.78b (up 17% from FY 2019). Net income: US$1.21b (up 6.3% from FY 2019). Profit margin: 32% (down from 35% in FY 2019). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 29% share price gain to US$9,164, the stock is trading at a trailing P/E ratio of 21.4x, up from the previous P/E ratio of 16.7x. This compares to an average P/E of 8x in the Banks industry in Mexico. Reported Earnings • Nov 09
Third quarter 2020 earnings released: EPS US$8.53 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: US$1.10b (up 41% from 3Q 2019). Net income: US$441.7m (up 65% from 3Q 2019). Profit margin: 40% (up from 34% in 3Q 2019). The increase in margin was driven by higher revenue. Analyst Estimate Surprise Post Earnings • Nov 09
Revenue beats expectations Revenue exceeded analyst estimates by 20%. Over the next year, revenue is forecast to grow 6.3%, compared to a 32% growth forecast for the Banks industry in Mexico. Reported Earnings • Oct 23
Third quarter earnings released Over the last 12 months the company has reported total profits of US$1.07b, down 6.5% from the prior year. Total revenue was US$3.36b over the last 12 months, up 9.5% from the prior year. Analyst Estimate Surprise Post Earnings • Oct 23
Third-quarter earnings released: Revenue beats expectations Third-quarter revenue exceeded analyst estimates by 20% at US$1.08b. Revenue is forecast to grow 3.8% over the next year, compared to a 30% growth forecast for the Banks industry in Mexico. Valuation Update With 7 Day Price Move • Oct 13
Market bids up stock over the past week After last week's 15% share price gain to US$5,863, the stock is trading at a trailing P/E ratio of 16x, up from the previous P/E ratio of 13.8x. This compares to an average P/E of 6x in the Banks industry in Mexico. 