This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Facebook IPO Trade You Can Bank On Right Now (Update 3)

Updated with market close information.

NEW YORK (TheStreet) -- Investors shut out of the Facebook IPO might consider SVB Financial Group (SIVB), which is a Silicon Valley growth story that will directly benefit from the mega wealth created by the social network.

SVB Financial main subsidiary is Silicon Valley Bank. The stock has been on fire, with shares rising 22% year-to-date, through Thursday's close at $59.96.

With billions flowing to Facebook investors -- including DST Global Limited and Elevation Partners -- following the IPO, it's not unreasonable to expect a flurry of new funding to expand Silicon Valley companies or to fund tech startups, which can only help SVB Financial, which has seen major expansion of its lending activity over the past year, along with revenue improvement.

SVB Financial Group CEO Gregory W. Becker

SVB Financial is headquartered in Santa Clara, Calif., with 26 offices in the U.S., as well as a presence in China, India, Israel and the Hong Kong. The company had $20 billion in total assets as of Dec. 31.

SVB reported fourth-quarter earnings to common shareholders of $35.6 million, or 81 cents a share, increasing from $17.5 million, or 41 cents a share, a year earlier.

While the bottom line improvement reflected lower credit costs, with the quarterly provision for loan losses declining to $8.2 million from $15.5 million a year earlier, the big story was loan growth.

Total loans grew 26% year-over-year, to $7.0 billion, and net interest income increased 34%, to $140.1 million in the fourth quarter. The company's net interest margin -- the difference between a bank's average yield on loans and investments and its average cost for deposits and wholesale borrowings -- expanded to 3.10% in the fourth quarter, from 2.74% a year earlier.

CEO Greg Becker said during SVB Financial's fourth-quarter conference call that the company had "received approval to move forward with setting up our joint venture bank in China, and are in the process of preparing for a launch in 2012," and that he was hoping to open a UK branch in 2012, after being "disappointed we didn't get the branch up and running in 2011."

CFO Mike Descheneaux gave some aggressive guidance for loan growth during the conference call, saying that "in light of our clients' continued strength and our strategy for keeping them longer and supporting them globally, we expect average loans in 2012 to grow at a percentage rate in the mid-20's."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,128.12 +21.42 0.13%
S&P 500 2,000.02 +2.10 0.11%
NASDAQ 4,570.6370 +13.29 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs