SVB Financial Group (NASDAQ:SIVB) stock plunges 21.50% (As on October 21, 11:54:57 AM UTC-4, Source: Google Finance) after the company’s bottom line totaled $429 million in the third quarter of FY 22 compared with $365 million, in last year’s third quarter. SIVB in the third quarter of FY 22 has reported the adjusted earnings per share of $7.21, beating the analysts’ estimates for the adjusted earnings per share of $6.95, according to figures compiled by Thomson Reuters. Net interest income, on a fully taxable equivalent basis, was $1.207 billion for the third quarter of 2022, compared to $1.177 billion for the second quarter of 2022. Net interest margin, on a fully taxable equivalent basis, was 2.28 percent for the third quarter of 2022, compared to 2.24 percent for the second quarter of 2022. The 4 basis point increase in the net interest margin was due primarily to improved loan and cash yields reflective of the higher rate environment, partially offset by the increase in interest-bearing deposit and short-term borrowings expense.

Moreover, Average loans increased by $1.8 billion to $71.1 billion for the third quarter of 2022, compared to $69.3 billion for the second quarter of 2022. Period-end loans increased by $1.2 billion to $72.1 billion at September 30, 2022, compared to $71.0 billion at June 30, 2022. Average and period-end loan growth was driven primarily by the Technology and Life Science/Healthcare and Private Bank loan portfolios. The allowance for credit losses for loans increased $12 million to $557 million at September 30, 2022, compared to $545 million at June 30, 2022. As a percentage of total loans, the allowance for credit losses for loans remains unchanged at 0.77 percent at both September 30, 2022 and June 30, 2022. Gross loan charge-offs were $26 million for the third quarter of 2022, of which $10 million was not specifically reserved for at June 30, 2022. Gross loan charge-offs were primarily driven by clients in the Technology and Life Sciences/Healthcare portfolios, including $17 million of charge-offs from Investor Dependent – Early Stage clients. Of the Early-Stage charge-offs, $8 million is related to two clients. Average Total Client Funds decreased by $18.4 billion to $368.3 billion for the third quarter of 2022, compared to $386.7 billion for the second quarter of 2022. Period-end Total Client Funds decreased $25.5 billion to $353.7 billion at September 30, 2022, compared to $379.2 billion at June 30, 2022.