From The Desk Of Irwin Michael – October 28, 2016: SVB Financial Group On October 20th, ABC Funds holding, SVB Financial Group, reported third quarter earnings of $2.12 per share, topping analysts’ estimates of $1.73. SVB is the holding company for Silicon Valley Bank, a California based commercial bank serving clients in the technology, life sciences, clean technology, venture capital and private equity segments. SVB’s better than expected results were fueled by consistent growth in loans and deposits, a rise in net interest income and margins, and a decline in provisions for loan losses. Moreover, given that there has been considerable speculation of an imminent U.S. Federal Reserve interest rate increase, SVB will likely be a beneficiary of a rising interest rate environment. In fact, on the earnings conference call, SVB’s CFO, stated that a 25 basis point increase in rates could add $25 to $28 million to the bank’s net income. Overall, given its strong balance sheet and growth potential, we believe that SVB Financial Group is well positioned for the balance of 2016 and into 2017. Irwin A. Michael, President I.A. Michael Investment Counsel Ltd.