SVB Financial Group expects to record a $32 million to $37 million increase in its fourth-quarter provision for income taxes.
The change is due to a corresponding decrease in the valuation of certain tax-related assets, in light of the lowered corporate tax rate and based on balances as of Nov. 30. The assets primarily relate to SVB's net deferred tax assets and its investments in low-income housing tax credit funds.
The Santa Clara, Calif.-based company is also recording an approximately $9 million loss on investment securities, pretax, following the sale of about $573 million in fixed income investment securities. The sale was in connection with ongoing treasury and tax management objectives, and proceeds were reinvested in higher-yielding investments.