By Liz Moyer — Shares of SVB Financial Group (NASDAQ:SIVB) were outperforming other stocks in the S&P 500 on Friday, a day after reporting fourth-quarter earnings that beat expectations.

While earnings per share of $4.62 were down 36% from the third quarter and missed expectations of $5.31 per share, the bank noted “solid loan growth, record base fees, better-than-expected net interest income and a healthy investment banking activity fueled by Biopharmaceutical Deals,” according to a letter to shareholders from CEO Greg Becker.

SVB shares rose more than 16% on Friday and are up 26% year to date. That’s a reversal of fortune for parent Silicon Valley Bank, which specializes in providing banking services to the venture capital community. The shares are down 55% in 12 months.

Non-interest income in the quarter of $490 million topped expectations of $488 million, driven by an increase in investment banking and client investment fees beginning in the third quarter.

While rising interest rates have created uncertainty and volatility, the bank said conversations with clients indicate they are positioning themselves for a quick resumption of activity once markets stabilize.

“We have seen four consecutive quarters of decline in VC investment, but the pace of decline appears to be slowing,” Becker said in the letter. “Each quarter brings us one step closer to the point where VCs and entrepreneurs find common ground on valuations and the massive amount of dry powder waiting to be deployed is unlocked.”

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