SVB Financial Group’s SIVB third-quarter 2021 adjusted earnings per share of $7.26 comfortably outpaced the Zacks Consensus Estimate of $5.06. In the year-ago quarter, the company recorded earnings of $8.47 per share.The reported quarter’s earnings figure excluded merger-related charges in connection with Boston Private Financial Holdings but included the day-one provision on non-purchased credit deteriorated loans and unfunded credit commitments acquired in connection with the merger.Results largely benefited from growth in revenues. Loans and deposit balances witnessed a sequential improvement in the quarter. However, a rise in expenses and lower net interest margin (NIM) were the undermining factors.Net income available to common shareholders (GAAP basis) was $365 million, down 17.4% from the prior-year quarter’s level.Revenues Improve, Expenses RiseNet revenues (tax-equivalent) were $1.53 billion, jumping 41.9% year over year. The top line surpassed the Zacks Consensus Estimate of $1.31 billion.Net interest income (NII) was $852 million, which grew 61.4% year over year. However, NIM (on a fully-taxable equivalent basis) contracted 58 basis points (bps) to 1.95%.Non-interest income was $672 million, improving 22.9% from the prior-year quarter’s tally. The upswing resulted from a rise in almost all fee income components, except for net gains on investment securities, client investment fees, investment banking revenues and other income.Non-interest expenses increased 79% year over year to $879 million. An increase in all expense components resulted in the rise. Merger-related charges worth $83 million were recorded in the quarter.Operating efficiency ratio was 57.68%, up from 45.66% in the prior-year quarter. A rise in efficiency ratio indicates lower profitability.Loans and Deposit Balances IncreaseAs of Sep 30, 2021, SVB Financial’s total loans amounted to $61.5 billion, increasing 21.1% from the prior quarter’s level while total deposits jumped 17.4% sequentially to $171.2 billion.Credit Quality: A Mixed BagIn the reported quarter, the company recorded provision for credit losses of $21 million against a reduction for credit losses of $52 million recorded in the prior-year quarter.However, the ratio of allowance for loan losses to total loans was 0.65%, down 69 bps year over year. The ratio of net charge-offs to average loans was 0.07%, down from 0.26% in the year-earlier quarter.Capital Ratios Improve, Profitability Ratios DeteriorateAt the end of the third quarter, common equity tier 1 risk-based capital ratio was 12.74% compared with 12.31% at the end of the prior-year quarter. Total risk-based capital ratio was 15.89%, up from 14.19%.Return on average assets on an annualized basis was 0.79%, down from 1.99% recorded in the year-ago quarter. Return on average equity was 12.47%, which decreased from 24.19%.2021 Outlook (Including Boston Private Merger)Average loans are expected to grow in the mid-40s. Average deposit balances are projected to grow in the mid-90s’ range (changed from the previous guidance of low-90s growth).NII is anticipated to grow in the mid-40s. NIM is projected to be 2.00-2.10%.Core fee income (including client investment fees, foreign-exchange fees, credit card fees, deposit service charges, lending-related fees, wealth management and trust fees, and letters of credit fees) is expected to increase at a percentage rate in the low twenties (changed from the prior guidance of high teens).SVB Leerink revenues are projected to be $525-$550 million (changed from the prior guided range of $480-$510 million).Non-interest expenses (excluding merger-related charges) are projected to increase in the low-40s (changed from the prior guidance of mid-30s).Net loan charge-offs are expected to be 0.20-0.40% of average total loans.The effective tax rate is expected to be 25-27%.Preliminary 2022 Outlook (Including Boston Private Merger)Average loans are expected to grow in the mid-20s. Average deposit balances are projected to grow in the low-40s.NII is anticipated to grow in the mid-30s. NIM is projected to be 1.90-2.00%.Core fee income (including client investment fees, foreign-exchange fees, credit card fees, deposit service charges, lending-related fees, wealth management and trust fees, and letters of credit fees) is expected to increase at a percentage rate in the mid-20s.SVB Leerink revenues are projected to be $625-$675 million.Non-interest expenses (excluding merger-related charges) are projected to increase in the low-20s.Net loan charge-offs are expected to be 0.20-0.40% of average total loans.The effective tax rate is expected to be 25-27%.Our TakeOn Jul 1, SVB Financial completed the acquisition of Boston Private for $1.2 billion, which accentuated its commitment to the wealth management business. The adoption of Boston Private’s digital platforms will accelerate SVB Financial’s technology development.Given its global diversification efforts, SVB Financial remains well-positioned for growth. However, the continuous increase in expenses and pressure on margins are major near-term concerns.SVB Financial Group Price, Consensus and EPS Surprise SVB Financial Group price-consensus-eps-surprise-chart | SVB Financial Group QuoteSVB Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksZions Bancorporation’s ZION third-quarter 2021 net earnings per share of $1.45 surpassed the Zacks Consensus Estimate of $1.38. The bottom line represents an increase of 43.6% from the year-ago quarter’s number.Hancock Whitney Corporation’s HWC third-quarter 2021 adjusted earnings of $1.45 per share outpaced the Zacks Consensus Estimate of $1.29. The bottom line improved 61.1% from the prior-year quarter’s figure.First Horizon National Corporation’s FHN third-quarter 2021 earnings per share of 50 cents beat the Zacks Consensus Estimate of 41 cents. Results excluded an after-tax impact of 9 cents per share from notable items related to the IBERIABANK Corporation Merger and an early retirement of certain trust-preferred securities. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zions Bancorporation, N.A. (ZION): Free Stock Analysis Report First Horizon Corporation (FHN): Free Stock Analysis Report SVB Financial Group (SIVB): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research