SANTA CLARA, Calif., Aug 12, 2003 /PRNewswire-FirstCall via COMTEX/ -- On July 17, 2003 Silicon Valley Bancshares, Inc. (Nasdaq: SIVB), parent
company of Silicon Valley Bank and Alliant Partners, announced preliminary
results that excluded any impact of a Statement of Financial Accounting
Standards (SFAS) No. 142 goodwill impairment test on its investment-banking
subsidiary, Alliant Partners, which was in process at the time of the
announcement. This impairment test, which has now been completed, resulted in
a $17.0 million pre-tax charge. Net of tax, the charge was $11.0 million.
After reflecting the impact of this impairment charge, the company realized a
net loss of $0.02 per diluted common share for the second quarter of 2003.
"Alliant's unique value as an integral part of our business strategy
remains unchanged, and its performance has met our expectations," said Ken
Wilcox, president and CEO.
"We engaged two independent firms to perform separate valuations on
Alliant Partners. One analysis resulted in no goodwill impairment, however,
the second analysis indicated goodwill impairment. We chose the more
conservative of the two."
Without the SFAS No. 142 analysis and resulting charge, second quarter
earnings would have been as previously reported. Complete financial
statements reflecting the impact of the impairment test are included as part
of this release. With the exception of the SFAS No. 142 charge, the financial
analysis remains as previously reported in the July 17, 2003 press release.
On August 12, 2003, the company will host a conference call at 5:00 p.m.
(EDT) to discuss this announcement. The conference call can be accessed by
dialing 877-630-8512 and referencing the passcode "Silicon Valley Bank." A
live Webcast can be accessed at www.svb.com. A digitized replay of this
conference call will be available beginning at approximately 7:30 p.m. (EDT),
on Tuesday, August 12, 2003, through 8:00 p.m. (EDT), on Saturday, August 16,
2003, by dialing 888-566-0514. A replay of the Webcast will also be available
on www.svb.com beginning Tuesday, August 12, 2003.
For 20 years, Silicon Valley Bancshares Inc., a financial holding company
providing diversified financial services, has sustained its mission to provide
innovative solutions to help entrepreneurs succeed. The company's principal
subsidiary, Silicon Valley Bank, serves emerging growth and mature companies
in the technology and life sciences markets, as well as the premium wine
industry. Headquartered in Santa Clara, California, the company offers its
clients financial products and services including commercial, investment,
merchant and private banking, as well as value-added client services using its
proprietary knowledge base. Merger, acquisition and corporate partnering
services are provided through the company's investment banking subsidiary,
Alliant Partners. More information on the company can be found at