SVB Financial (SVB) in Santa Clara, Calif., reported a 60% increase in quarterly profit after investment securities it holds rose more than ninefold in value.
The $23.7 billion-asset parent of Silicon Valley Bank earned $67.6 million in the third quarter, up from $42.3 million a year earlier. The company recorded $187.9 million in securities gains, including nearly $30 million due to the initial public offering of FireEye, an online security firm, which increased the value of bank-owned venture funds.
SVB's net interest income rose 15%, to $177.1 million.
The provision for loan losses grew by 57%, to $10.6 million, and chargeoffs increased by 76%, to $8.1 million.
Noninterest expense grew by 19%, to $160.5 million, driven by a 22% rise in compensation costs, to $96.9 million.