Silicon Valley Bank resumed its net interest margin expansion in the fourth quarter, as margins expanded 7 basis points to 3.69%. Over the past year, net interest income has grown nearly 31% to $517.4, driven by higher rates and strong loan growth, particularly within capital call lines of credit. For the quarter, the bank earned $4.96 per share, while pretax income jumped 46% from the previous year. Silicon Valley Bank has had basically no significant credit provisions over the past year despite what we view as a low-quality loan portfolio. We believe investors are valuing the bank based on a cyclical peak in profitability and growth. When management says competition for loans remains fierce, we urge investors to believe them. For now, we'll be maintaining our fair value estimate of $98 per share. However, as we digest full-year results and update our 2019 forecast, investors should expect an increase in our fair value comparable to the increase in book value per share.
For the period, Silicon Valley Bank grew loans 3% from the previous quarter and nearly 23% from the end of 2017. A vast majority of Silicon Valley Bank's loan growth is coming from private equity and venture capital. Though healthcare lending has still seen strong loan demand, the bank saw negative growth in its loans to software and hardware companies in the quarter. Loans in Silicon Valley's private equity/venture capital segment now account for nearly 50% of the bank's entire loan portfolio. To put this in perspective, just three years ago these loans accounted for about a third of the entire portfolio.
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