SVB Financial Group
Jul 23, 2009

SVB Financial Group Announces 2009 Second Quarter Financial Results

SANTA CLARA, Calif.,, July 23, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- SVB Financial Group (Nasdaq: SIVB) today announced financial results for the second quarter ended June 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060213/SFM027LOGO)

Consolidated net income available to common stockholders for the second quarter of 2009 was $7.8 million, or $0.24 per diluted common share, compared to a net loss applicable to common stockholders of $11.8 million, or $0.36 per diluted common share, for the first quarter of 2009, and net income available to common stockholders of $21.0 million, or $0.61 per diluted common share, for the second quarter of 2008.

Highlights of our second quarter 2009 results included:

    --  Provision for loan losses of $21.4 million, a decrease of $22.1 million
        compared to the first quarter of 2009.
    --  A special assessment fee of $5.0 million, mandated for all banks by the
        Federal Deposit Insurance Corporation ("FDIC").
    --  A decrease in average loan balances of $336.3 million, or 6.6 percent,
        reflecting efforts by some clients to de-leverage their businesses due
        to the continuing effects of the downturn in the economic environment.
    --  Growth in average deposit balances of $504.9 million, or 6.4 percent, to
        $8.4 billion.

    --  Growth in period-end investment securities of $606.2 million, or 29.8
        percent, primarily due to increases in U.S. agency securities and
        agency-issued mortgage-backed securities.

During the second quarter of 2009, we determined that we had incorrectly recognized certain gains and losses on foreign exchange contracts in prior periods. The cumulative pre-tax effect of the error was $6.2 million, or $3.8 million after-tax and is considered to be immaterial to the prior periods. As such, the affected prior period results have been revised as follows: For the three months ended March 31, 2009, net loss increased by $1.2 million, or $0.04 per diluted common share, for the year ended December 31, 2008, net income was reduced by $2.3 million, or $0.07 per diluted common share, and for the year ended December 31, 2007, net income was reduced by $0.2 million, or $0.01 per diluted common share. Details of the revisions are provided below under the section "Changes to Prior Period Balances."

Consolidated net loss applicable to common stockholders for the six months ended June 30, 2009 was $4.0 million, or $0.12 per diluted common share, compared to net income available to common stockholders of $48.3 million, or $1.40 per diluted common share, for the comparable 2008 period.

"Despite the impact of the continued economic downturn on our business and our clients, we are doing everything in our power to manage effectively through this cycle, and we are succeeding" said Ken Wilcox, President and CEO of SVB Financial Group. "We managed credit quality during the quarter to meet our stated expectations. We maintained our strong capital and liquidity positions, while increasing our investment securities portfolio by investing our excess deposits. We also continued to invest in building our business and supporting our clients through their own challenges. While we expect the rest of the year to be challenging, we will continue to make the right decisions to position ourselves to take advantage of an eventual upturn in the economy, whenever it may occur."

Second Quarter 2009 Summary

                                             Three months ended
                                                                % Change from
                                                                -------------
    (Dollars in
     millions,
     except share
     data and              June       March         June       March      June
     ratios)                30,         31,          30,         31,       30,
                           2009        2009*        2008*       2009      2008
    -----------            ----        ----         ----        ----      ----
    Income
     Statement:
    Diluted
     earnings
     (loss)
     per
     common
     share (1)            $0.24      $(0.36)       $0.61       NM   %  (60.7)%
    Net income
     (loss)
     attributable
     to SVBFG (1)          11.3        (8.2)        21.0       NM      (46.2)
    Net income
     (loss)
     available to
     common
     stockholders
     (1)                    7.8       (11.8)        21.0       NM      (62.9)
    Net interest
     income (1)            91.7        91.5         86.8      0.2        5.6
    Provision
     for loan
     losses                21.4        43.5          8.4    (50.8)     154.8
    Noninterest
     income (loss)         28.3        (5.6)        44.5       NM      (36.4)
    Noninterest
     expense               89.0        87.1         87.2      2.2        2.1
    Non-GAAP net
     income (loss)
     available to
     common
     stockholders
     (1)(2)                 7.8        (7.7)        24.9       NM      (68.7)
    Non-GAAP
     noninterest
     income, net of
     noncontrolling
     interests (2)         34.4        25.0         43.7     37.6      (21.3)
    Non-GAAP
     noninterest
     expense, net of
     noncontrolling
     interests (2)         86.2        79.7         80.9      8.2        6.6

    Fully Taxable
     Equivalent:
       Net
        interest
        income
        (1)(3)            $92.2       $92.1        $87.4      0.1%       5.5%
       Net
        interest
        margin (1)         3.71%       3.97%        5.62%    (6.5)     (34.0)

    Shares
     Outstanding:
       Common        33,142,568  32,935,515   32,252,367      0.6%       2.8%
       Basic
        weighted
        average      32,951,905  32,931,714   32,053,749      0.1        2.8
       Diluted
        weighted
        average      33,078,367  32,931,714   34,192,459      0.4       (3.3)

    Balance
     Sheet:
    Average
     total
     assets (1)       $10,928.0   $10,456.4     $7,158.0      4.5%      52.7%
    Average
     loans, net
     of
     unearned
     income             4,780.0     5,116.3      4,319.9     (6.6)      10.7
    Average
     interest-
     earning
     investment
     securities         1,832.7     1,464.2      1,336.5     25.2       37.1
    Average
     noninterest-
     bearing
     demand
     deposits           5,132.8     4,636.6      2,833.0     10.7       81.2
    Average
     interest-
     bearing
     deposits           3,299.7     3,291.2      1,815.9      0.3       81.7
    Average
     total
     deposits           8,432.6     7,927.7      4,648.8      6.4       81.4
    Average
     short-term
     borrowings            45.8        47.0        206.0     (2.6)     (77.8)
    Average
     long-term
     debt (1)             945.4       970.2      1,096.4     (2.6)     (13.8)
    Period-end
     total
     assets (1)        11,465.9    10,955.0      7,310.0      4.7       56.9
    Period-end
     loans,
     net of
     unearned
     income             4,844.3     5,003.1      4,633.7     (3.2)       4.5
    Period-end
     investment
     securities         2,638.4     2,032.2      1,788.0     29.8       47.6
    Period-end
     noninterest-
     bearing
     demand
     deposits           5,551.2     5,228.8      2,919.2      6.2       90.2
    Period-end
     interest-
     bearing
     deposits           3,443.4     3,253.5      1,944.4      5.8       77.1
    Period-end
     total
     deposits           8,994.6     8,482.3      4,863.6      6.0       84.9

    Off-
     Balance
     Sheet:
    Average total
     client
     investment
     funds            $16,450.5   $17,701.3    $21,389.3     (7.1)%    (23.1)%
    Period-end
     total client
     investment
     funds             15,972.8    16,894.7     21,877.9     (5.5)     (27.0)
    Total
     unfunded
     credit
     commitments        4,963.7     5,072.6      5,034.3     (2.1)      (1.4)

    Earnings
     Ratios:
    Return on
     average
     assets
     (1)(4)                0.42%      (0.32)%       1.18%      NM   %  (64.4)%
    Return on
     average common
     SVBFG
     stockholders'
     equity
     (1)(5)(6)             3.95       (6.07)       12.41       NM      (68.2)

    Asset
     Quality
     Ratios:
    Allowance for
     loan losses
     as a
     percentage
     of total
     gross loans           2.26%       2.18%        1.13%     3.7%     100.0%
    Gross charge-
     offs as a
     percentage of
     average total
     gross loans
     (annualized)          1.82        3.30         0.84    (44.8)     116.7
    Net charge-
     offs as a
     percentage
     of average
     total gross
     loans
     (annualized)          1.74        3.21         0.47    (45.8)     270.2

    Other
     Ratios:
    Total risk-
     based
     capital
     ratio                18.46%      18.75%       15.10%    (1.5)%     22.3%
    Operating
     efficiency
     ratio (1)(7)         73.86      100.74        66.11    (26.7)      11.7
    Period-end
     loans,
     net of
     unearned
     income,
     to
     deposits             53.86       58.98        95.27     (8.7)     (43.5)
    Average
     loans, net
     of unearned
     income, to
     deposits             56.68       64.54        92.92    (12.2)     (39.0)

    Non-GAAP
     Ratios:
     (1)(2)
    Tangible
     common
     equity to
     tangible
     assets                6.94        6.99         9.39     (0.7)     (26.1)
    Tangible
     common
     equity to
     risk-
     weighted
     assets               10.54       10.17         9.72      3.6        8.4
    Non-GAAP
     return on
     average
     assets (8)            0.42%      (0.16)%       1.40%      NM   %  (70.0)%
    Non-GAAP return
     on average
     common SVBFG
     stockholders'
     equity (6)(9)         3.95       (3.96)       14.69       NM      (73.1)
    Non-GAAP
     operating
     efficiency
     ratio                68.05       68.02        61.75        -       10.2

    Other
     Statistics:
    Common stock
     repurchases             $-          $-         $1.0        -%    (100.0)%
    Period-end
     SVB prime
     lending
     rate                  4.00%       4.00%        5.00%       -      (20.0)
    Average
     SVB prime
     lending
     rate                  4.00        4.00         5.08        -      (21.3)


    (Dollars in
     millions, except
     share data and                Six Months Ended
     ratios)                June 30,    June 30,       %
                              2009        2008*     Change
    ------------------        ----        ----      ------
    Income Statement:
    Diluted earnings
     (loss) per common
     share (1)              $(0.12)      $1.40       (108.6)%
    Net income (loss)
     attributable to
     SVBFG (1)                 3.1        48.3        (93.6)
    Net income (loss)
     available to
     common
     stockholders (1)         (4.0)       48.3       (108.3)
    Net interest
     income (1)              183.2       177.6          3.2
    Provision for loan
     losses                   64.9        16.1           NM
    Noninterest income
     (loss)                   22.7        86.3        (73.7)
    Noninterest
     expense                 176.2       170.6          3.3
    Non-GAAP net
     income (loss)
     available to
     common
     stockholders
     (1)(2)                    0.1        52.1        (99.8)
    Non-GAAP
     noninterest
     income, net of
     noncontrolling
     interests (2)            59.4        87.2        (31.9)
    Non-GAAP
     noninterest
     expense, net of
     noncontrolling
     interests (2)           165.8       161.6          2.6

    Fully Taxable Equivalent:
       Net interest
        income (1)(3)       $184.3      $178.7          3.1%
       Net interest
        margin (1)            3.83%       5.94%       (35.5)

    Shares Outstanding:
       Common           33,142,568  32,252,367          2.8%
       Basic weighted
        average         32,960,239  32,166,820          2.5
       Diluted weighted
          average       32,960,239  34,347,128         (3.9)

    Balance Sheet:
    Average total
     assets (1)          $10,693.5    $6,955.0         53.8%
    Average loans, net
     of unearned income    4,947.2     4,216.4         17.3
    Average interest-
     earning investment
     securities            1,649.4     1,299.8         26.9
    Average
     noninterest-
     bearing demand
     deposits              4,886.1     2,866.3         70.5
    Average interest-
     bearing deposits      3,295.5     1,675.6         96.7
    Average total
     deposits              8,181.5     4,541.9         80.1
    Average short-term
     borrowings               46.4       220.5        (79.0)
    Average long-term
     debt (1)                957.7       989.4         (3.2)
    Period-end total
     assets (1)           11,465.9     7,310.0         56.9
    Period-end loans,
     net of unearned
     income                4,844.3     4,633.7          4.5
    Period-end
     investment
     securities            2,638.4     1,788.0         47.6
    Period-end
     noninterest-
     bearing demand
     deposits              5,551.2     2,919.2         90.2
    Period-end
     interest-bearing
     deposits              3,443.4     1,944.4         77.1
    Period-end total
     deposits              8,994.6     4,863.6         84.9

    Off-Balance Sheet:
    Average total
     client investment
     funds               $17,075.9   $21,641.9        (21.1)%
    Period-end total
     client investment
     funds                15,972.8    21,877.9        (27.0)
    Total unfunded
     credit commitments    4,963.7     5,034.3         (1.4)

    Earnings Ratios:
    Return on average
     assets (1)(4)            0.06%       1.40%       (95.7)%
    Return on average
     common SVBFG
     stockholders'
     equity (1)(5)(6)        (1.02)      14.15       (107.2)

    Asset Quality Ratios:
    Allowance for loan
     losses as a
     percentage of
     total gross
     loans                    2.26%       1.13%       100.0%
    Gross charge-offs
     as a percentage of
     average total
     gross loans
     (annualized)             2.58        0.73           NM
    Net charge-offs as
     a percentage of
     average total
     gross loans
     (annualized)             2.50        0.50           NM

    Other Ratios:
    Total risk-based
     capital ratio           18.46%      15.10%        22.3%
    Operating
     efficiency ratio
     (1)(7)                  85.09       64.40         32.1
    Period-end loans,
     net of unearned
     income, to
     deposits                53.86       95.27        (43.5)
    Average loans, net
     of unearned
     income, to
     deposits                60.47       92.83        (34.9)

    Non-GAAP Ratios: (1)(2)
    Tangible common
     equity to tangible
     assets                   6.94        9.39        (26.1)
    Tangible common
     equity to risk-
     weighted assets         10.54        9.72          8.4
    Non-GAAP return on
     average assets (8)       0.14%       1.51%       (90.7)%
    Non-GAAP return on
     average common
     SVBFG
     stockholders'
     equity (6)(9)            0.03       15.28        (99.8)
    Non-GAAP operating
     efficiency ratio        68.04       60.86         11.8

    Other Statistics:
    Common stock
     repurchases                $-       $45.6       (100.0)%
    Period-end SVB
     prime lending rate       4.00%       5.00%       (20.0)
    Average SVB prime
     lending rate             4.00        5.66        (29.3)

    NM- Not meaningful

    *  Certain amounts have been revised to reflect the correction of
       immaterial errors associated with previously recognized gains and
       losses on foreign exchange contracts. Refer to "Changes to Prior Period
       Balances" section below for more details. Amounts for the three months
       ended March 31, 2009 and June 30, 2008, and the six months ended June
       30, 2008 have been retrospectively revised.

    (1) Balances, results and ratios for all periods presented reflect our
        adoption of FSP APB 14-1. Refer to "Long-Term Debt" discussion for
        more details. Amounts for the three and six months ended June 30, 2008
        have been retrospectively adjusted.
    (2) A reconciliation of non-GAAP calculations to GAAP is provided in the
        schedules attached.
    (3) Interest income on non-taxable investments is presented on a fully
        taxable equivalent basis using the federal statutory income tax rate
        of 35.0 percent. The taxable equivalent adjustments were $0.6 million
        for each of the quarters ended June 30, 2009, March 31, 2009, and June
        30, 2008, respectively. The taxable equivalent adjustments were $1.1
        million for each of the six months ended June 30, 2009 and 2008,
        respectively.
    (4) Ratio represents annualized consolidated net income (loss)
        attributable to SVB Financial Group ("SVBFG") divided by quarterly
        average assets and year-to-date average assets.
    (5) Ratio represents annualized consolidated net income (loss) available
        to common stockholders divided by quarterly average SVBFG
        stockholders' equity (excluding preferred equity) and year-to-date
        average SVBFG stockholders' equity (excluding preferred equity).
    (6) Our 2009 adoption of SFAS No. 160, Noncontrolling Interests in
        Consolidated Financial Statements - an amendment of Accounting
        Research Bulletin No. 51 ("SFAS No. 160"), requires us to reclassify
        our presentation of noncontrolling interests (formerly referred to as
        minority interests).
    (7) The operating efficiency ratio is calculated by dividing noninterest
        expense by total taxable equivalent net interest income plus
        noninterest income.
    (8) Ratio represents non-GAAP annualized consolidated net income (loss)
        attributable to SVBFG (excluding non-tax deductible goodwill
        impairment charge of $4.1 million recorded in the first quarter of
        2009 and non-tax deductible noninterest expense of $3.9 million
        related to the conversion premium value of certain of our zero-coupon
        convertible notes that were converted prior to maturity ("Coco Loss")
        recorded in the second quarter of 2008) divided by quarterly average
        assets and year-to-date average assets.
    (9) Ratio represents non-GAAP annualized consolidated net income (loss)
        available to common stockholders (excluding non-tax deductible
        goodwill impairment charge of $4.1 million recorded in the first
        quarter of 2009 and non-tax deductible $3.9 million Coco Loss recorded
        in the second quarter of 2008) divided by quarterly average SVBFG
        stockholders' equity (excluding preferred equity) and year-to-date
        average SVBFG stockholders' equity (excluding preferred equity).

Net Interest Income and Margin

Net interest income, on a fully taxable equivalent basis, was $92.2 million for the second quarter of 2009, compared to $92.1 million for the first quarter of 2009 and $87.4 million for the second quarter of 2008. The following table provides a summary of changes in interest income and interest expense attributable to both volume and rate changes from the first to the second quarter of 2009. Changes that are not solely due to either volume or rate are allocated in proportion to the percentage changes in average volume and average rate:

                                         Q2'09 compared to Q1'09
                                         -----------------------
                                           Increase (decrease)
                                             due to change in
                                           -------------------
    (Dollars in thousands)               Volume   Rate    Total
    ----------------------               ------   ----    -----
    Interest income:
        Short-term investment securities   $446   $(337)   $109
        Investment securities             3,878  (1,985)  1,893
        Loans                            (4,827)    824  (4,003)
                                         ------     ---  ------
    Decrease in interest income, net       (503) (1,498) (2,001)
                                           ----  ------  ------

    Interest expense:
        Deposits                            124  (1,366) (1,242)
        Short-term borrowings                 -      (1)     (1)
        Long-term debt                      (91)   (819)   (910)
                                            ---    ----    ----
    Increase (decrease) in interest
     expense, net                            33  (2,186) (2,153)
                                             --  ------  ------
    (Decrease) increase in net interest
     income                               $(536)   $688    $152
                                          =====    ====    ====

The change in net interest income, on a fully taxable equivalent basis, from the first to the second quarter of 2009, was primarily attributable to the following:

    --  An increase in interest income of $1.9 million from our interest-earning
        investment securities portfolio, primarily related to the growth in
        average balances of $368.5 million due to new investments. The purchases
        were primarily for U.S. agency securities and agency-issued
        mortgage-backed securities.
    --  A decrease in interest expense of $1.2 million from interest-bearing
        deposits due to the full quarter effect of a decrease in deposit
        interest rates in the first quarter of 2009.
    --  A decrease in interest expense of $0.9 million from our long-term debt,
        driven by a decrease in interest expense associated with interest rate
        swap agreements for our 5.70% senior and 6.05% subordinated notes, due
        to lower London Interbank Offered Rates ("LIBOR").

    --  A decrease in interest income from our loan portfolio of $4.0 million
        driven principally by a decrease in average loan balances of $336.3
        million. Our average prime-lending rate was 4.00 percent for both the
        first and second quarters of 2009.

Our net interest margin, on a fully taxable equivalent basis, was 3.71 percent for the second quarter of 2009, compared to 3.97 percent for the first quarter of 2009 and 5.62 percent for the second quarter of 2008. The decrease from the first to the second quarter of 2009 was primarily a result of our continued growth in deposits, which was deposited in overnight funds with the Federal Reserve, as well as purchases of new investments, which were at lower yields due to the lower interest rate environment. These reductions in our net interest margin were partially offset by a decrease in interest expense related to deposits and long-term debt due to declining market rates.

Net interest income, on a fully taxable equivalent basis, was $184.3 million and $178.7 million for the six months ended June 30, 2009 and 2008, respectively. Net interest margin, on a fully taxable equivalent basis, was 3.83 percent for the six months ended June 30, 2009, compared to 5.94 percent for the comparable 2008 period.

On an average basis, for the second quarter of 2009, 71.0 percent, or $3.5 billion, of our outstanding gross loans were variable-rate loans that adjust at prescribed measurement dates upon a change in our prime-lending rate or other variable indices. This compares to 72.8 percent, or $3.7 billion, for the first quarter of 2009 and 73.1 percent, or $3.2 billion, for the second quarter of 2008.

Investment Securities

Our investment securities portfolio consists of both a fixed income investment portfolio, which primarily represents interest-earning securities, and a non-marketable securities portfolio, which primarily represents investments managed as part of our funds management business. Total investment securities were $2.6 billion at June 30, 2009, compared to $2.0 billion at March 31, 2009 and $1.8 billion at June 30, 2008. The increase from the first to the second quarter of 2009 was primarily due to purchases of U.S. agency securities and agency-issued mortgage-backed securities as part of our overall investment strategy.

Average interest-earning investment securities were $1.8 billion for the second quarter of 2009, compared to $1.5 billion for the first quarter of 2009 and $1.3 billion for the second quarter of 2008.

Non-marketable securities were $478.7 million ($193.6 million net of noncontrolling interests) as of June 30, 2009, compared to $454.5 million ($178.4 million net of noncontrolling interests) as of March 31, 2009. The increase from the first to the second quarter of 2009 was primarily attributable to new investments in the second quarter of 2009. Reconciliations of our non-GAAP non-marketable securities, net of noncontrolling interests, are provided below under the section "Use of Non-GAAP Financial Measures."

Loans

Average loans, net of unearned income, were $4.8 billion for the second quarter of 2009, compared to $5.1 billion for the first quarter of 2009 and $4.3 billion for the second quarter of 2008. The decrease in average loan balances from the first to the second quarter of 2009 came primarily from decreases in loans to software and hardware clients, reflecting efforts by some clients to de-leverage their businesses due to the continuing effects of the downturn in the economic environment. Period-end loans, net of unearned income, were $4.8 billion at June 30, 2009, compared to $5.0 billion at March 31, 2009 and $4.6 billion at June 30, 2008.

Our nonaccrual loans totaled $111.4 million at June 30, 2009, compared to $97.6 million at March 31, 2009 and $8.5 million at June 30, 2008. The allowance for loan losses related to nonaccrual loans was $44.0 million, $40.9 million and $2.9 million at June 30, 2009, March 31, 2009 and June 30, 2008, respectively. The increase in nonaccrual loans and related allowance for loan losses from the first to the second quarter of 2009 came primarily from loans within our software and private client services industries.

The following table provides a summary of our concentration of loans individually greater than $20 million by industry sector at June 30, 2009, March 31, 2009 and June 30, 2008:

                                           Loans individually greater than
                                                    $20 million at
                                           -------------------------------
    (Dollars in thousands, except ratios   June 30,   March 31,    June 30,
     and client data)                        2009        2009        2008
    ------------------------------------     ----        ----        ----
    Technology                             $529,534    $493,835    $439,817
    Private Equity                          247,702     254,348     392,837
    Life Sciences                            25,376      28,750      66,110
    Private Client Services                  99,407     102,491      73,876
    Premium Wineries                              -           -           -
    All other sectors                        21,000      48,687      87,233
                                             ------      ------      ------
    Total                                  $923,019    $928,111  $1,059,873
                                           ========    ========  ==========

    Loans individually greater than
     $20 million as a percentage of
     total gross loans                        18.89%      18.40%      22.71%
    Total clients with loans individually
     greater than $20 million                    28          29          32
    Loans individually greater than
     $20 million on nonaccrual status       $68,029     $64,085          $-

Deposits

Average deposits were $8.4 billion for the second quarter of 2009, compared to $7.9 billion for the first quarter of 2009 and $4.6 billion for the second quarter of 2008. The increase in average deposit balances from the first to the second quarter of 2009 came primarily from our noninterest-bearing demand deposits, which grew by $496.3 million to $5.1 billion.

Growth in average balances in the second quarter of 2009 was primarily due to the following factors: (i) the full quarter effect of our discontinuation of our third-party, off-balance sheet sweep product completed in the first quarter of 2009; and (ii) the desire among some clients to benefit from the security provided by FDIC insurance for noninterest-bearing accounts.

Period-end deposits were $9.0 billion at June 30, 2009, compared to $8.5 billion at March 31, 2009 and $4.9 billion at June 30, 2008.

Long-Term Debt

Effective January 1, 2009, we adopted the Financial Accounting Standards Board ("FASB") Staff Position ("FSP") Accounting Principles Board Opinion No. 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) ("FSP APB 14-1"), which required a change in the accounting treatment for our convertible debt instruments. The FSP requires that the proceeds from the issuance of convertible debt instruments be allocated between a liability and an equity component in a manner that reflects the entity's non-convertible debt borrowing rate when interest expense is recognized in subsequent periods. The resulting debt discount is amortized over the period the convertible debt is expected to be outstanding as additional non-cash interest expense. Historical financial statements for 2007 and 2008 are required to be adjusted retrospectively to conform to the FSP's new accounting treatment for both our zero-coupon convertible subordinated notes, which matured on June 15, 2008 and our 3.875% convertible senior notes due April 15, 2011.

As a result of adopting the requirements of FSP APB 14-1, our net income available to common stockholders for the second quarter of 2009 decreased by $0.3 million and our net loss attributable to common stockholders for the first quarter of 2009 increased by $0.3 million. Details of certain prior period revised items related to the adoption of FSP APB 14-1 are provided below under the section "Changes to Prior Period Balances."

Noninterest Income (Loss)

Noninterest income was $28.3 million for the second quarter of 2009, compared to noninterest loss of $5.6 million for the first quarter of 2009 and noninterest income of $44.5 million for the second quarter of 2008.

Non-GAAP noninterest income, net of noncontrolling interests, was $34.4 million for the second quarter of 2009, compared to $25.0 million for the first quarter of 2009 and $43.7 million for the second quarter of 2008. Reconciliations of our non-GAAP noninterest income and non-GAAP net losses on investment securities, both of which exclude amounts attributable to noncontrolling interests, are provided below under the section "Use of Non-GAAP Financial Measures."

The increase in noninterest income (GAAP basis) from the first to the second quarter of 2009 was primarily driven by the following factors:

    --  Net losses on investment securities of $6.8 million for the second
        quarter of 2009, compared to net losses of $35.0 million for the first
        quarter of 2009 and net gains of $2.0 million for the second quarter of
        2008. The net losses of $6.8 million in the second quarter of 2009 were
        primarily due to net losses of $7.9 million from our managed
        co-investment funds and managed funds of funds due to the continuing
        effects of the downturn in the overall economy on valuations of our
        investments. These losses were partially offset by net gains of $1.7
        million from our debt funds primarily due to realized gains related to
        distributions from two of our debt fund investments and unrealized gains
        from one of our debt fund investments. The following table provides a
        summary of net losses on investment securities for the three months
        ended June 30, 2009 and March 31, 2009:

                                           Three months ended
                                           -------------------
                                                                     March 31,
                                      June 30, 2009                     2009
                                      -------------                  ---------
                    Managed Co-    Managed
    (Dollars in      Investment    Funds Of    Debt
     thousands)        Funds        Funds      Funds Other   Total     Total
    -----------     -----------   ---------    ----- -----   -----     -----
    Unrealized
     (losses) gains    $(1,691)     $(6,469)   $798    $-  $(7,362)  $(34,792)
    Realized
     (losses)
     gains                (907)       1,174     883  (538)     612       (253)
                          ----        -----     ---  ----      ---       ----
    Total (losses)
     gains on
     investment
     securities,
     net                $(2,598)    $(5,295) $1,681 $(538) $(6,750)  $(35,045)
                        =======     =======  ====== =====  =======   ========
    Less: (losses)
     income
     attributable
     to
     noncontrolling
     interests,
     including
     carried
     interest            (2,414)     (4,831)    312     -   (6,933)   (30,438)
                         ------      ------     ---    --   ------    -------
    Non-GAAP net
     (losses) gains
     on investment
     securities,
     net
     of
     noncontrolling
     interests            $(184)      $(464) $1,369 $(538)    $183    $(4,607)
                          =====       =====  ====== =====     ====    =======

As of June 30, 2009, we held investments, either directly or through seven of our managed investment funds, in 436 venture capital/private equity funds, 77 companies and five debt funds.

    --  An increase in other noninterest income of $10.0 million, mainly driven
        by net gains of $5.7 million from revaluation of our foreign currency
        denominated loans and non-marketable investment securities for the
        second quarter of 2009, compared to net losses of $3.6 million for the
        first quarter of 2009. The net gains of $5.7 million for the second
        quarter of 2009 were primarily due to the weakening of the U.S. dollar
        against the Pound Sterling. The net gains of $4.7 million from
        revaluation of our foreign currency denominated loans were partially
        offset by net losses from foreign exchange forward contracts of $4.5
        million, which are included in net (losses) gains on derivative
        instruments.

    --  Net losses on derivative instruments of $2.8 million for the second
        quarter of 2009, compared to net gains of $1.8 million for the first
        quarter of 2009 and net gains of $4.4 million for the second quarter of
        2008. The following table provides a summary of our net (losses) gains
        on derivative instruments:

                                 Three months ended         Six months ended
                                 ------------------         ----------------
    (Dollars in thousands)   June 30,  March 31,  June 30, June 30,  June 30,
                               2009       2009      2008     2009      2008
    --------------             ----       ----      ----     ----      ----
    (Losses) gains
     on foreign
     exchange
     forward
     contracts,
     net:
      Gains on client
       foreign exchange
       forward
       contracts, net          $448       $496      $478     $944    $1,206
      (Losses) gains
       on internal
       foreign
       exchange
       forward
       contracts,
       net (1)               (4,479)     1,943       624   (2,536)   (2,467)
                             ------      -----       ---   ------    ------
    Total
     (losses)
     gains on
     foreign
     exchange
     forward
     contracts,
     net                     (4,031)     2,439     1,102   (1,592)   (1,261)
    Change in fair
     value of
     interest rate
     swap                         -       (170)      879     (170)      386
    Gains on covered
     call options (2)             -          -       377        -       377
    Net gains
     (losses) on
     equity warrant
     assets                   1,184       (455)    2,050      729     7,505
                              -----       ----     -----      ---     -----
    Total (losses)
     gains on
     derivative
     instruments,
     net                    $(2,847)    $1,814    $4,408  $(1,033)   $7,007
                            =======     ======    ======  =======    ======

    (1) Represents the change in fair value of foreign exchange forward
        contracts used to economically reduce our foreign exchange exposure
        related to certain foreign currency denominated loans. Revaluations of
        foreign currency denominated loans are recorded on the line item
        "Other" as part of noninterest income (loss), a component of
        consolidated net income (loss).
    (2) Represents net gains on covered call options by one of our
        consolidated sponsored debt funds.

        The decrease in net (losses) gains on derivative instruments from the
        first to the second quarter of 2009 was primarily driven by the
        following factors:

    --  Net losses of $4.5 million from foreign exchange forward contracts
        hedging our foreign currency denominated loans, which partially offset
        net gains of $4.7 million from revaluation of our foreign currency
        denominated loans that are included in other noninterest income.

    --  Net gains on equity warrant assets of $1.2 million in the second quarter
        of 2009, compared to net losses of $0.5 million in the first quarter of
        2009. The net gains on equity warrant assets of $1.2 million was driven
        by net gains of $3.7 million from share price increases of certain
        investments in our public warrant portfolio, partially offset by net
        losses of $1.2 million from valuation decreases in our private warrant
        portfolio and $1.3 million from warrant terminations.

Noninterest Expense

Noninterest expense was $89.0 million for the second quarter of 2009, compared to $87.1 million for the first quarter of 2009 and $87.2 million for the second quarter of 2008.

Non-GAAP noninterest expense, net of noncontrolling interests, was $86.2 million for the second quarter of 2009, compared to $79.7 million for the first quarter of 2009 and $80.9 million for the second quarter of 2008. Reconciliations of our non-GAAP noninterest expense, net of noncontrolling interests, are provided below under the section "Use of Non-GAAP Financial Measures."

The following table provides a summary of certain noninterest expense (GAAP basis) items:

                                                              Six months
                                 Three months ended             ended
                               ---------------------        ------------
    (Dollars in thousands)   June 30,  March 31,  June 30, June 30,  June 30,
                               2009       2009      2008     2009      2008
    ----------------           ----       ----      ----     ----      ----
    Compensation and
     benefits:
       Salaries and
        wages               $26,874    $28,962   $24,770  $55,836   $50,562
       Incentive
        Compensation
        Plan                  5,520      5,039    11,607   10,559    22,860
       Employee Stock
        Ownership Plan            -          -     1,642        -     3,413
       Other employee
        benefits             14,500     14,279    12,040   28,779    27,005
                             ------     ------    ------   ------    ------
    Total
     compensation
     and benefits            46,894     48,280    50,059   95,174   103,840
    FDIC assessments          8,589      2,675       700   11,264     1,136
    Impairment of
     goodwill                     -      4,092         -    4,092         -
    (Reduction of)
     provision for
     unfunded credit
     commitments             (1,147)    (2,284)      800   (3,431)      635
    Other (1)                34,676     34,377    35,630   69,053    65,015
                             ------     ------    ------   ------    ------
    Total noninterest
     expense                $89,012    $87,140   $87,189 $176,152  $170,626
                            =======    =======   ======= ========  ========

    Full-time equivalent
     employees                1,260      1,262     1,209    1,260     1,209
                              =====      =====     =====    =====     =====

    (1) Other noninterest expense includes professional services, premises and
        equipment, net occupancy, business development and travel,
        correspondent bank fees, and other noninterest expenses. For further
        details of noninterest expense items, please refer to "Interim
        Consolidated Statements of Income".

The increase in noninterest expense (GAAP basis) from the first to the second quarter of 2009 was primarily attributable to the following:

    --  An increase of $5.9 million in FDIC assessments primarily attributable
        to a $5.0 million special five basis point assessment fee, mandated for
        all banks by the FDIC.
    --  A reduction of provision for unfunded credit commitments of $1.1 million
        for the second quarter of 2009, compared to a reduction of provision of
        $2.3 million for the first quarter of 2009. The reduction of provision
        for unfunded credit commitments of $1.1 million for the second quarter
        of 2009 was primarily reflective of a decrease in the balance of our
        total unfunded credit commitments and due to lower utilization of
        commitments by borrowers. Total unfunded credit commitments were $5.0
        billion at June 30, 2009, compared to $5.1 billion at March 31, 2009.
    --  A non-tax deductible goodwill impairment charge of $4.1 million recorded
        in the first quarter of 2009 resulting from changes in our outlook for
        eProsper's future financial performance.

    --  A decrease of $1.4 million in compensation and benefits expense,
        primarily resulting from higher expenses incurred in the first quarter
        of 2009 due to seasonal expenses and other accruals of vacation
        benefits.

Income Tax Expense (Benefit)

Effective January 1, 2009, we adopted SFAS No. 160, which requires us to clearly identify and distinguish between the interests of the Company and the interest of the noncontrolling owners by presenting noncontrolling interests after net income (loss) in our interim consolidated statements of income. As a result, our effective tax rate is calculated by dividing income tax expense (benefit) by the sum of income (loss) before income tax expense (benefit) and the net income (loss) attributable to noncontrolling interests.

Our effective tax rate was 38.8 percent for the second quarter of 2009, compared to 22.9 percent for the first quarter of 2009 and 43.7 percent for the second quarter of 2008. The increase in the tax rate from the first to the second quarter of 2009 was primarily attributable to the lower tax impact of tax advantaged investments on our overall pre-tax income.

Our effective tax rate was 60.4 percent for six months ended June 30, 2009, compared to 41.8 percent for the comparable 2008 period. The increase in the tax rate was primarily attributable to the tax impact of the $4.1 million non-tax deductible goodwill impairment associated with eProsper in the first quarter of 2009.

Credit Quality

The following table provides a summary of our allowance for loan losses:

                             Three months ended              Six months ended
                             ------------------              ----------------
    (Dollars           June        March        June         June        June
     in                 30,          31,         30,          30,         30,
     thousands)        2009         2009        2008         2009        2008
    -----------        ----         ----        ----         ----        ----
    Allowance
     for           $110,010     $107,396     $49,636     $107,396     $47,293
     loan
     losses,
     beginning
     balance
    Provision
     for
     loan
     losses          21,393       43,466       8,351       64,859      16,074
    Gross
     loan
     charge-offs    (21,898)     (42,013)     (9,098)     (63,911)    (15,306)
    Loan
     recoveries         968        1,161       3,999        2,129       4,827
    -----------          ---        -----       -----        -----       -----
    Allowance
     for
     loan
     losses,
     ending
     balance       $110,473     $110,010     $52,888     $110,473     $52,888
    --------       ========     ========     =======     ========     =======
    Provision
     as a
     percentage
     of total
     gross
     loans
     (annualized)      1.76%        3.49%       0.72%        2.68%       0.69%
    Gross
     loan
     charge-offs
     as a
     percentage
     of
     average
     total
     gross
     loans
     (annualized)      1.82         3.30        0.84         2.58        0.73
    Net loan
     charge-
     offs as a
     of
     average
     total
     gross
     loans
     (annualized)      1.74         3.21        0.47         2.50        0.50
    Allowance
     for loan
     losses as
     a
     percentage
     of total
     gross
     loans             2.26         2.18        1.13         2.26        1.13
    Total
     gross
     loans at
     period-end  $4,886,040   $5,045,208  $4,666,989   $44,886,040  $4,666,989
    Average
     total
     gross
     loans        4,820,855    5,159,412   4,349,545    4,989,385   4,245,479

Our provision for loan losses of $21.4 million for the second quarter of 2009 was primarily attributable to the following:

    --  Gross loan charge-offs of $21.9 million primarily from our life
        sciences, software and private client services portfolios.

    --  Loan recoveries of $1.0 million, primarily from our software and
        hardware industry portfolios.

In July 2009, an independent asset management firm announced that it had closed its transaction with HRJ Capital to assume the management of HRJ's private equity and real estate fund of funds. The transaction included the restructuring of HRJ's debt obligations owed to us. The final terms of the transaction did not have a material impact on our net income or provision for loan losses for the second quarter of 2009. Further, subject to final review of the accounting impact of the transaction, we do not expect the transaction will have any material impact on our net income and provision for loan losses for the third quarter of 2009.

During the third quarter of 2009, we expect to complete a transaction, which will result in a recovery of approximately $11.5 million, on a pre-tax basis, from a single loan previously charged-off in the first quarter of 2009. The final transaction is subject to the satisfaction of various closing conditions.

Noncontrolling Interests

Net loss attributable to noncontrolling interests was $9.0 million for the second quarter of 2009, compared to a net loss of $34.0 million for the first quarter of 2009 and a net loss of $1.5 million for the second quarter of 2008. Net loss attributable to noncontrolling interests of $9.0 million for the second quarter of 2009 was primarily attributable to the following:

    --  Losses on investment securities (including carried interest)
        attributable to noncontrolling interests of $6.9 million, stemming
        mainly from losses of $4.8 million from our managed funds of funds and
        $2.4 million from our managed co-investment funds.

    --  Noninterest expense of $2.8 million, principally related to management
        fees paid by the noncontrolling interests to the general partner
        entities managed by SVB Capital.

Capital

Net income available to common stockholders for both the first and second quarters of 2009 was reduced by $3.5 million related to dividends and discount amortization in connection with our preferred stock issued under the Capital Purchase Program ("CPP") on December 12, 2008.

Outlook for the Year Ending December 31, 2009

Our outlook for the year ending December 31, 2009 is provided below on a GAAP basis, unless otherwise noted. We have provided our current outlook for the expected full year results of our significant forecasted activities. In general, we do not provide our outlook for selected items where the timing or financial impact are particularly uncertain, or for certain potential unusual or one-time items; however in light of the current uncertain economic environment, we have provided directional guidance on two such elements, specifically net gains (losses) from equity warrant assets and net gains (losses) from investments in venture capital/private equity related activities. The outlook observations presented below are, by their nature, forward-looking statements and are subject to substantial risks and uncertainties which are discussed below under the caption "Forward-Looking Statements".

For the year ending December 31, 2009, compared to our 2008 results, we currently expect the following outlook:

                                                      Change in outlook
                                  Current outlook         compared to
                                  compared to 2008     outlook reported
                                 results as of July     as of April 23,
                                       23, 2009              2009
                                 -------------------  -----------------
                                                           Outlook
                                                        decreased from
                                    Increase at a         high single
                                   percentage rate      digits, due to
                                      in the mid        overall market
    Average loan balances           single digits         conditions
    ---------------------         ----------------     ---------------
                                    Increase at a
                                      percentage
                                     rate in the
                                       sixties;
                                     majority of
                                     growth from
                                      interest-
                                       bearing          No change from
    Average deposit balances           deposits        previous outlook
    -------------------------       -------------     -----------------
                                    Between 3.7%        No change from
    Net interest margin                to 4.0%         previous outlook
    -------------------             ------------      -----------------
                                                        Outlook improved
                                    Between 1.40% to     as our present
                                 1.45% of total gross    expectation is
                                   loans. Range is      that the balance
                                     exclusive of        of 2009 will
    Allowance for loan losses      existing specific     be reflective
    as a percentage of gross         reserves for        of our second
    loans                           impaired loans      quarter results.
    -------------------------    -------------------    ----------------
                                  Between 1.75% to
                                    1.80% of total
                                  gross loans. Range
                                 is inclusive of net
                                  charge-offs in the
                                   first and second
                                   quarters of 2009
                                   but exclusive of
                                  any potential net
                                 charge-offs related
                                  to loans impaired
                                    as of June 30,
                                 2009. For the third
                                    through fourth
                                quarters of 2009, we
                                   expect quarterly
                                   net charge-offs
                                   (annualized) of
                                  approximately 1.4%
                                    of total gross
                                   loans, excluding
                                  any potential net
                                 charge-offs related
                                  to loans impaired     No change from
    Net loan charge-offs         as of June 30, 2009   previous outlook
    --------------------        --------------------  -----------------
                                       Increase
                                     during 2009
                                        due to
                                     current and
                                       expected
    Ratio of non-performing            economic         No change from
     loans and assets                 conditions       previous outlook
    ------------------------        ------------      -----------------
                                                       Outlook declined
                                                       from an increase
    Fees for deposit services,      Decrease at a      in the low single
    letters of credit and          percentage rate      digits, due to
    foreign exchange, in              in the low        overall market
    aggregate                       single digits         conditions
    --------------------------    ----------------        ----------
                                       Decline
                                   significantly to
                                  approximately one-
                                     half of 2008       No change from
    Client investment fees              levels         previous outlook
    ----------------------       -------------------  -----------------
    Net gains (losses) from         No net gains        No change from
    equity warrant assets             expected         previous outlook
    -----------------------         ------------      -----------------
    Net losses on investment         Increase to
    securities, net of           approximately double   No change from
    noncontrolling interests*      of 2008 levels      previous outlook
    --------------------------   -------------------   ---------------
                                                       Outlook improved
                                                       from high teens,
    Noninterest expense*                                 due to lower
    (excluding expenses                               compensation and
    related to goodwill             Increase at a     benefits and lower
    impairment and                percentage rate in  than expected FDIC
    noncontrolling interests)       the mid teens       assessment fees
    --------------------------   ------------------- -------------------

    * non-GAAP

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts, such as forecasts of our future financial results and condition, expectations for our operations and business, and our underlying assumptions of such forecasts and expectations. In this release, including in the section "Outlook for the Year Ending December 31, 2009" above, we make forward-looking statements discussing management's expectations about economic conditions, opportunities in the market, our financial, credit and business performance and financial results (and the components of such results) for, and expectations about the impact of transactions on, the third quarter of 2009 and the year 2009.

Although management believes that the expectations reflected in our forward-looking statements are reasonable and has based these expectations on our beliefs and assumptions, such expectations are not guarantees and may prove to be incorrect. Actual results could differ significantly. Factors that may cause the outlook for the year 2009 and other forward-looking statements herein to change include, among others, the following: (i) accounting changes, as required by U.S. generally accepted accounting principles, (ii) continued deterioration or other changes in the state of the economy or the markets in which we conduct business or are served by us, (iii) changes in credit quality of our loan portfolio, (iv) changes in interest rates or market levels or factors affecting them, (v) changes in the performance or equity valuations of funds or companies in which we have invested or hold derivative instruments or equity warrant assets, (vi) variations from our expectations as to factors impacting our cost structure, (vii) errors in our assessment of the creditworthiness or liquidity of our clients or unanticipated effects of credit concentration risks which create or exacerbate deterioration of such creditworthiness or liquidity, and (viii) challenges in satisfying closing conditions to complete the proposed transaction relating to our expected credit recovery in the third quarter of 2009. For additional information about these factors, please refer to our public reports filed with the U.S. Securities and Exchange Commission, including our most recently-filed quarterly or annual report. The forward-looking statements included in this release are made only as of the date of this release. We do not intend, and undertake no obligation, to update these forward-looking statements.

Earnings Conference Call

On July 23, 2009, we will host a conference call at 3:00 p.m. (Pacific Time) to discuss the financial results for the second quarter ended June 30, 2009. The conference call can be accessed by dialing (877) 663-9523 or (404) 665-9482, and referencing the conference ID "20164609". A live webcast of the audio portion of the call can be accessed on the Investor Relations section of our website at www.svb.com. A replay of the conference call will be available beginning at approximately 6:00 p.m. (Pacific Time) on Thursday, July 23, 2009, through midnight on Thursday, August 6, 2009, by dialing (800) 642-1687 or (706) 645-9291 and referencing conference ID number "20164609." A replay of the audio webcast will also be available on www.svb.com for 12 months beginning Thursday, July 23, 2009.

About SVB Financial Group

For over 25 years, SVB Financial Group and its subsidiaries, including Silicon Valley Bank, have been dedicated to helping entrepreneurs succeed. SVB Financial Group is a financial holding company that serves companies in the technology, life science, venture capital/private equity and premium wine industries. Offering diversified financial services through Silicon Valley Bank, SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services, SVB Financial Group provides clients with commercial, investment, international and private banking services. The Company also offers funds management, broker-dealer services and asset management, as well as the added value of its knowledge and networks worldwide. Headquartered in Santa Clara, California, SVB Financial Group operates through 27 offices in the U.S. and international operations in China, India, Israel and the United Kingdom. More information on the Company can be found at www.svb.com. (SIVB-F)

Banking services are provided by Silicon Valley Bank, the California bank subsidiary and commercial banking operation of SVB Financial Group, and a member of the FDIC and the Federal Reserve. SVB Private Client Services is a division of Silicon Valley Bank. SVB Financial Group is also a member of the Federal Reserve.

                         SVB FINANCIAL GROUP AND SUBSIDIARIES
                       INTERIM CONSOLIDATED STATEMENTS OF INCOME
                                      (Unaudited)

                              Three months ended           Six months ended
                            ---------------------        -------------------
    (Dollars in
     thousands,
     except share
     data)            June 30,    March 31,   June 30,   June 30,    June 30,
                        2009        2009*       2008*      2009*       2008*
    --------            ----        ----        ----       ----        ----
    Interest
     income:
       Loans           $84,248     $88,251     $84,515   $172,499    $174,274
       Investment
        securities:
          Taxable       16,794      14,851      14,586     31,645      28,356
          Non-
           taxable       1,029       1,061       1,078      2,090       2,015
       Federal funds
        sold,
        securities
        purchased
        under
        agreements to
        resell and
        other short-
        term
        investment
        securities       2,485       2,376       3,684      4,861       7,801
    -----------------    -----       -----       -----      -----       -----
    Total
     interest
     income            104,556     106,539     103,863    211,095     212,446
    ---------          -------     -------     -------    -------     -------
    Interest
     expense:
       Deposits          5,605       6,847       5,372     12,452      10,641
       Borrowings
       (1)               7,270       8,181      11,695     15,451      24,231
      ----------         -----       -----      ------     ------      ------
    Total
     interest
     expense            12,875      15,028      17,067     27,903      34,872
    ---------           ------      ------      ------     ------      ------
    Net interest
     income             91,681      91,511      86,796    183,192     177,574
    Provision for
     loan losses        21,393      43,466       8,351     64,859      16,074
    -------------       ------      ------       -----     ------      ------
    Net interest
     income after
     provision
     for loan
     losses             70,288      48,045      78,445    118,333     161,500
    -------------       ------      ------      ------    -------     -------
    Noninterest
     income
     (loss):
       Foreign
        exchange
        fees             7,617       7,466       7,961     15,083      15,805
       Deposit
        service
        charges          6,590       6,823       6,056     13,413      11,947
       Client
        investment
        fees             5,580       6,248      13,648     11,828      27,370
       Letters of
        credit and
        standby
        letters of
        credit
        income           2,329       2,892       3,142      5,221       6,088
       Credit card
        fees             2,957       1,439       1,502      4,396       3,202
       Corporate
        finance fees         -           -           -          -       3,640
       (Losses) gains
        on derivative
        instruments,
        net             (2,847)      1,814       4,408     (1,033)      7,007
       (Losses)
        gains on
        investment
        securities,
        net             (6,750)    (35,045)      2,039    (41,795)     (4,073)
        Other           12,799       2,782       5,759     15,581      15,281
        -----           ------       -----       -----     ------      ------
    Total
     noninterest
     income (loss)      28,275      (5,581)     44,515     22,694      86,267
    --------------      ------      ------      ------     ------      ------
    Noninterest
     expense:
       Compensation
        and benefits    46,894      48,280      50,059     95,174     103,840
       Professional
        services        11,258      12,080       9,132     23,338      17,933
       FDIC
        assessments      8,589       2,675         700     11,264       1,136
       Premises and
        equipment        5,473       5,407       5,455     10,880      10,643
       Net occupancy     4,836       4,305       4,342      9,141       8,690
       Business
        development
        and travel       3,152       3,273       3,764      6,425       7,186
       Impairment of
        goodwill             -       4,092           -      4,092           -
       Correspondent
        bank fees        1,963       1,913       1,816      3,876       3,322
       Loss from
        cash
        settlement
        of
        conversion
        premium of
        zero-coupon
        convertible
        subordinated
        notes                -           -       3,858          -       3,858
       (Reduction
        of)
        provision
        for
        unfunded
        credit
        commitments     (1,147)     (2,284)        800     (3,431)        635
       Other             7,994       7,399       7,263     15,393      13,383
       -----             -----       -----       -----     ------      ------
    Total
     noninterest
     expense            89,012      87,140      87,189    176,152     170,626
    ------------        ------      ------      ------    -------     -------
    Income
     (loss)
     before
     income
     tax
     expense
     (benefit)           9,551     (44,676)     35,771    (35,125)     77,141
    Income tax
     expense
     (benefit)
     (1)                 7,174      (2,448)     16,291      4,726      34,639
    ----------           -----      ------      ------      -----      ------
    Net income
     (loss)              2,377     (42,228)     19,480    (39,851)     42,502
    Net loss
     attributable to
     noncontrolling
     interests (2)       8,961      33,993       1,534     42,954       5,752
    ----------------     -----      ------       -----     ------       -----
    Net income
     (loss)
     attributable
     to SVBFG
     (1)(2)            $11,338     $(8,235)    $21,014     $3,103     $48,254
    =============      =======     =======     =======     ======     =======
    Preferred
     stock
     dividend
     and
     discount
     accretion          (3,545)     (3,536)          -     (7,081)          -
    ----------          ------      ------          --     ------          --
    Net income
     (loss)
     available to
     common
     stockholders
     (1)                $7,793    $(11,771)    $21,014    $(3,978)    $48,254
    =============       ======    ========     =======    =======     =======
    Earnings
     (loss) per
     common
     share -
     basic (1)           $0.24      $(0.36)      $0.66     $(0.12)      $1.50
    Earnings
     (loss)
     per
     common
     share -
     diluted
     (1)                 $0.24      $(0.36)      $0.61     $(0.12)      $1.40
    Weighted
     average
     common
     shares
     outstanding
     - basic        32,951,905  32,931,714  32,053,749 32,960,239  32,166,820
    Weighted
     average
     common
     shares
     outstanding -
     diluted        33,078,367  32,931,714  34,192,459 32,960,239  34,347,128

    *  Certain amounts have been revised to reflect the correction of
       immaterial errors associated with previously recognized gains and
       losses on foreign exchange contracts, which is included under other
       noninterest income. Refer to "Changes to Prior Period Balances" section
       below for more details. Amounts for the three months ended March 31,
       2009 and June 30, 2008, and the six months ended June 30, 2008 have
       been retrospectively revised.
    (1) Balances for all periods presented reflect our adoption of FSP
        APB 14-1. Refer to "Long-Term Debt" discussion for more details.
        Amounts for the three and six months ended June 30, 2008 have been
        retrospectively adjusted.
    (2) Our 2009 adoption of SFAS No. 160 requires us to reclassify our income
        statement presentation for noncontrolling interests.

                       SVB FINANCIAL GROUP AND SUBSIDIARIES
                       INTERIM CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

    (Dollars in thousands,
     except par value,                    June 30,      March 31,    June 30,
     share data and ratios)                2009           2009*       2008*
    -----------------------                ----           ----        ----
    Assets:
    Cash and due from banks            $3,246,560     $3,360,199    $303,057
    Federal funds sold, securities
     purchased under agreements to
     resell and other short-term
     investment securities                462,810        286,787     325,723
    Investment securities               2,638,380      2,032,157   1,787,996
    Loans, net of unearned income       4,844,253      5,003,069   4,633,701
    Allowance for loan losses            (110,473)      (110,010)    (52,888)
    -------------------------            --------       --------     -------
    Net loans                           4,733,780      4,893,059   4,580,813
    ---------                           ---------      ---------   ---------
    Premises and equipment, net
     of accumulated depreciation
     and amortization                      30,196         29,341      34,787
    Goodwill                                    -              -       4,092
    Accrued interest receivable and
     other assets                         354,161        353,472     273,542
    -------------------------------       -------        -------     -------
    Total assets (1)                  $11,465,887    $10,955,015  $7,310,010
    ================                  ===========    ===========  ==========

    Liabilities and total equity:
    Liabilities:
      Deposits:
        Noninterest-bearing demand     $5,551,226     $5,228,830  $2,919,205
        Negotiable order of
         withdrawal (NOW)                  31,719         43,802      48,032
        Money market                    1,178,716      1,061,547   1,131,154
        Foreign money market               29,832         45,439           -
        Time                              356,781        393,433     410,591
        Sweep                           1,846,309      1,709,273     354,598
        -----                           ---------      ---------     -------
      Total deposits                    8,994,583      8,482,324   4,863,580
      --------------                    ---------      ---------   ---------
      Short-term borrowings                31,340         56,450     330,000
      Other liabilities                   205,113        163,422     163,911
      Long-term debt (1)                  909,641        964,175     969,588
      ------------------                  -------        -------     -------
    Total liabilities                  10,140,677      9,666,371   6,327,079
    -----------------                  ----------      ---------   ---------

    SVBFG stockholders' equity:
      Preferred stock, $0.001 par
       value, 20,000,000 shares
       authorized; no shares issued
       and outstanding                          -              -           -
      Preferred stock, Series B Fixed
       Rate Cumulative Perpetual
       Preferred Stock, $1,000
       liquidation value per share,
       235,000 shares authorized;
       235,000 shares issued and
       outstanding, net of discount       222,391        221,783           -
      Common stock, $0.001 par
       value, 150,000,000 shares
       authorized; 33,142,568
       shares, 32,935,515 shares and
       32,252,367 shares
       outstanding, respectively               33             33          32
      Additional paid-in capital (1)       86,478         71,760      20,754
      Retained earnings (1)               705,847        697,956     684,404
      Accumulated other
       comprehensive loss                   4,470         (3,162)    (13,634)
      -------------------                   -----         ------     -------
    Total SVBFG stockholders'
     equity (2)                         1,019,219        988,370     691,556
    Noncontrolling interests (2)          305,991        300,274     291,375
    ----------------------------          -------        -------     -------
    Total equity (2)                    1,325,210      1,288,644     982,931
    ----------------                    ---------      ---------     -------
    Total liabilities and
     total equity                     $11,465,887    $10,955,015  $7,310,010
    =====================             ===========    ===========  ==========

    Capital Ratios:
    Total risk-based capital ratio          18.46%         18.75%      15.10%
    Tier 1 risk-based capital ratio         13.89          13.67       10.43
    Tier 1 leverage ratio                    9.88          10.15       10.72
    Tangible common equity
     to tangible assets
     ratio (3)                               6.94           6.99        9.39
    Tangible common equity to risk-
     weighted assets ratio                  10.54          10.17        9.72

    Other Period-End Statistics:
    Loans, net of unearned income-to-
     deposits ratio                         53.86%         58.98%      95.27%
    Book value per common share (4)        $24.04         $23.28      $21.44
    Full-time equivalent employees          1,260          1,262       1,209

    *   Certain amounts have been revised to reflect the correction of
        immaterial errors associated with previously recognized gains and
        losses on foreign exchange contracts. Refer to "Changes to Prior
        Period Balances" section below for more details. Amounts for March 31,
        2009 and June 30, 2008 have been retrospectively revised.
    (1) Balances for all periods presented reflect our adoption of FSP
        APB 14-1. Refer to "Long-Term Debt" discussion for more details.
        Balances as of June 30, 2008 have been retrospectively adjusted.
    (2) Our 2009 adoption of SFAS No. 160 requires us to reclassify our
        balance sheet presentation for noncontrolling interests.
    (3) Tangible common equity consists of SVB Financial Group ("SVBFG")
        stockholders' equity (excluding preferred equity) less acquired
        intangibles and goodwill. Tangible assets represent total assets
        less acquired intangibles and goodwill.
    (4) Book value per common share is calculated by dividing total SVBFG
        stockholders' equity (excluding preferred equity) by total outstanding
        common shares.

                       SVB FINANCIAL GROUP AND SUBSIDIARIES
                    INTERIM AVERAGE BALANCES, RATES AND YIELDS
                                    (Unaudited)

                                Three months ended
                                ------------------
                                  June 30, 2009
                                  -------------
    (Dollars in thousands)           Interest
                          Average     Income/  Yield/
                          Balance     Expense   Rate
    ----------------      -------     -------   ----
    Interest-earning
     assets:
    Federal funds
     sold,
     securities
     purchased
     under
     agreements to
     resell and
     other short-
     term
     investment
     securities (1)      $3,369,317    $2,485    0.30%
    Investment
     securities: (2)
      Taxable             1,729,648    16,794    3.89
      Non-taxable (3)       103,017     1,583    6.16
    Total loans,
     net of
     unearned
     income (4)           4,779,966    84,248    7.07
    ------------          ---------    ------    ----
    Total interest-
     earning assets       9,981,948   105,110    4.23
    ---------------       ---------   -------    ----
    Cash and due
     from banks             198,361
    Allowance for loan
     losses                (112,647)
    Goodwill                      -
    Other assets (5)        860,381
    ----------------        -------
    Total assets (6)    $10,928,043
    ================    ===========

    Funding sources:
    Interest-bearing
     liabilities:
      NOW deposits          $40,775       $37    0.36%
      Regular money
       market
       deposits             152,894       175    0.46
      Bonus money
       market
       deposits             908,884     1,300    0.57
      Foreign money
       market
       deposits              49,181        78    0.64
      Time deposits         368,856       621    0.68
      Sweep deposits      1,779,158     3,394    0.77
      --------------      ---------     -----    ----
    Total interest-
     bearing
     deposits             3,299,748     5,605    0.68
    Short-term
     borrowings              45,846        20    0.17
    Zero-coupon
     convertible
     subordinated
     notes (6)                    -         -       -
    3.875% convertible
     senior notes (6)       245,522     3,506    5.73
    Junior subordinated
     debentures              55,938       893    6.40
    Senior and
     subordinated
     notes                  562,990     2,575    1.83
    Other long-
     term debt               80,945       276    1.37
    -----------              ------       ---    ----
    Total interest-
     bearing
     liabilities          4,290,989    12,875    1.20
    Portion of
     noninterest-
     bearing
     funding
     sources              5,690,959
    -------------         ---------    ------    ----
    Total funding
     sources              9,981,948    12,875    0.52
    -------------         ---------    ------    ----

    Noninterest-
     bearing
     funding
     sources:
    Demand deposits       5,132,849
    Other liabilities       181,421
    Discount on zero-
     coupon
     convertible
     subordinated
     notes (6)                    -
    SVBFG stockholders'
     equity (6)           1,014,269
    Noncontrolling
     interests (7)          308,515
    Portion used
     to fund
     interest-
     earning assets      (5,690,959)
    ---------------      ----------
    Total
     liabilities
     and total
     equity             $10,928,043
    ============        ===========   =======    ====
    Net interest
     income and
     margin (6)                       $92,235    3.71%
                                      =======    ====
    Total deposits       $8,432,597
                         ==========
    Average SVBFG
     stockholders'
     equity as a
     percentage of
     average assets                              9.28%
                                                 ====
    Reconciliation to
     reported net
     interest income:
    -----------------
    Adjustments for
     taxable
     equivalent basis                    (554)
                                         ----
    Net interest
     income, as
     reported                         $91,681
                                      =======



                                              Three months ended
                                              ------------------
                                March 31, 2009             June 30, 2008
                                --------------             -------------
    (Dollars in                   Interest                    Interest
     thousands)       Average     Income/  Yield/   Average   Income/  Yield/
                      Balance     Expense  Rate     Balance   Expense   Rate
    -----------       -------     -------  ----     -------   -------   ----
    Interest-
     earning
     assets:
    Federal funds
     sold,
     securities
     purchased
     under
     agreements
     to resell and
     other short-
     term
     investment
     securities
     (1)           $2,825,988    $2,376    0.34%   $597,673    $3,684    2.48%
    Investment
     securities:
     (2)
      Taxable       1,357,752    14,851    4.44   1,233,490    14,586    4.76
      Non-
       taxable
       (3)            106,404     1,633    6.22     102,989     1,659    6.48
    Total loans,
     net of
     unearned
     income (4)     5,116,252    88,251    7.00   4,319,897    84,515    7.87
    ------------    ---------    ------    ----   ---------    ------    ----
    Total
     interest-
     earning
     assets         9,406,396   107,111    4.62   6,254,049   104,444    6.72
    ----------      ---------   -------    ----   ---------   -------    ----
    Cash and
     due from
     banks            321,282                       249,074
    Allowance
     for loan
     losses          (111,527)                      (52,776)
    Goodwill            4,048                         4,092
    Other
     assets (5)       836,208                       703,591
    -----------       -------                       -------
    Total
     assets (6)   $10,456,407                    $7,158,030
    ===========   ===========                    ==========

    Funding
     sources:
    Interest-
     bearing
     liabilities:
      NOW
       deposits       $52,282       $49    0.38%    $51,992       $71    0.55%
      Regular
       money
       market
       deposits       179,099       305    0.69     152,707       533    1.40
      Bonus
       money
       market
       deposits       986,034     1,738    0.71     900,767     2,467    1.10
      Foreign
       money
       market
       deposits        64,485       174    1.09           -         -       -
      Time
       deposits       376,833       730    0.79     387,981       920    0.95
      Sweep
       deposits     1,632,420     3,851    0.96     322,420     1,381    1.72
      ---------     ---------     -----    ----     -------     -----    ----
    Total
     interest-
     bearing
     deposits       3,291,153     6,847    0.84   1,815,867     5,372    1.19
    Short-term
     borrowings        47,044        21    0.18     205,983     1,104    2.16
    Zero-coupon
     convertible
     subordinated
     notes (6)              -         -       -     133,822       876    2.63
    3.875%
     convertible
     senior notes
     (6)              244,789     3,505    5.81     225,976     3,149    5.60
    Junior
     subordinated
     debentures        55,921       786    5.70      53,090       540    4.09
    Senior and
     subordinated
     notes            568,206     3,407    2.43     531,086     4,874    3.69
    Other long-
     term debt        101,269       462    1.85     152,386     1,152    3.04
    -----------       -------       ---    ----     -------     -----    ----
    Total
     interest-
     bearing
     liabilities    4,308,382    15,028    1.41   3,118,210    17,067    2.20
    Portion of
     noninterest-
     bearing
     funding
     sources        5,098,014                     3,135,839
    -------------   ---------    ------    ----   ---------    ------    ----
    Total
     funding
     sources        9,406,396    15,028    0.65   6,254,049    17,067    1.10
    --------        ---------    ------    ----   ---------    ------    ----

    Noninterest-
     bearing
     funding
     sources:
    Demand
     deposits       4,636,553                     2,832,956
    Other
     liabilities      184,844                       243,316
    Discount on
     zero-coupon
     convertible
     subordinated
     notes (6)              -                           336
    SVBFG
     stockholders'
     equity (6)     1,008,102                       680,927
    Noncontrolling
     interests (7)    318,526                       282,285
    Portion
     used to
     fund
     interest-
     earning
     assets        (5,098,014)                   (3,135,839)
    ----------     ----------                    ----------
    Total
     liabilities
     and total
     equity       $10,456,407                    $7,158,030
    ============  ===========   =======    ====  ==========   =======    ====
    Net interest
     income and
     margin (6)                 $92,083    3.97%              $87,377    5.62%
                                =======    ====               =======    ====
    Total
     deposits      $7,927,706                    $4,648,823
                   ==========                    ==========
    Average SVBFG
     stockholders'
     equity as a
     percentage of
     average assets                        9.64%                         9.51%
                                           ====                          ====
    Reconciliation to
     reported net
     interest income:
    -----------------
    Adjustments
     for taxable
     equivalent
     basis                         (572)                         (581)
                                   ----                          ----
    Net interest
     income, as
     reported                   $91,511                       $86,796
                                =======                       =======

    (1) Includes average interest-bearing deposits in other financial
        institutions of $174.2 million, $180.0 million and $99.2 million for
        the quarters ended June 30, 2009, March 31, 2009, and June 30, 2008,
        respectively. For the quarters ended June 30, 2009 and March 31, 2009,
        balance also includes $3.1 billion and $2.5 billion, respectively,
        deposited at the Federal Reserve Bank, earning interest at the Federal
        Funds target rate.
    (2) Yields on interest-earning investment securities do not give effect to
        changes in fair value that are reflected in other comprehensive
        income.
    (3) Interest income on non-taxable investment securities is presented on a
        fully taxable equivalent basis using the federal statutory tax rate of
        35.0 percent for all periods presented.
    (4) Nonaccrual loans are reflected in the average balances of loans.
    (5) Average investment securities of $470.4 million, $467.0 million and
        $373.3 million for the quarters ended June 30, 2009, March 31, 2009,
        and June 30, 2008, respectively, were classified as other assets as
        they were noninterest-earning assets. These investments primarily
        consisted of non-marketable securities.
    (6) Balances for all periods presented reflect our adoption of FSP
        APB 14-1. Refer to "Long-Term Debt" discussion for more details.
        Amounts for the quarter ended June 30, 2008 have been retrospectively
        adjusted.
    (7) Our 2009 adoption of SFAS No. 160 requires us to reclassify our
        presentation of noncontrolling interests.

                        SVB FINANCIAL GROUP AND SUBSIDIARIES
                     INTERIM AVERAGE BALANCES, RATES AND YIELDS
                                     (Unaudited)

                                          Six months ended
                                          ----------------
                            June 30, 2009                  June 30, 2008
                      -------------------------    ------------------------
                                Interest                      Interest
    (Dollars in       Average   Income/   Yield/   Average    Income/  Yield/
     thousands)       Balance   Expense    Rate    Balance    Expense   Rate
    -----------       -------   -------    ----    -------    -------   ----
    Interest-earning
     assets:
    Federal funds
     sold,
     securities
     purchased
     under
     agreements to
     resell and
     other short-
     term
     investment
     securities (1)  $3,099,153   $4,861   0.32%   $536,392    $7,801  2.92%
    Investment
     securities: (2)
      Taxable         1,544,728   31,645   4.13   1,203,594    28,356  4.74
      Non-taxable
       (3)              104,701    3,216   6.19      96,175     3,101  6.48
    Total loans,
     net of
     unearned
     income (4)       4,947,180  172,499   7.03   4,216,381   174,274  8.31
    ------------      ---------  -------   ----   ---------   -------  ----
    Total interest-
     earning assets   9,695,762  212,221   4.41   6,052,542   213,532  7.09
    ---------------   ---------  -------   ----   ---------   -------  ----
    Cash and due
     from banks         259,482                     262,773
    Allowance for
     loan losses       (112,090)                    (50,526)
    Goodwill              2,013                       4,092
    Other assets(5)     848,361                     686,102
    ------------        -------                     -------
    Total assets(6) $10,693,528                  $6,954,983
    ============    ===========                  ==========

    Funding sources:
    Interest-bearing
     liabilities:
      NOW deposits      $46,496      $86   0.37%    $44,570      $108  0.49%
      Regular
       money market
       deposits         165,924      480   0.58     144,596       957  1.33
      Bonus money
       market
       deposits         947,246    3,038   0.65     887,361     5,702  1.29
      Foreign
       money market
       deposits          56,791      252   0.89           -         -     -
      Time deposits     372,823    1,351   0.73     365,776     1,686  0.93
      Sweep
       deposits       1,706,195    7,245   0.86     233,338     2,188  1.89
      ---------       ---------    -----   ----     -------     -----  ----
    Total interest-
     bearing
     deposits         3,295,475   12,452   0.76   1,675,641    10,641  1.28
    Short-term
     borrowings          46,442       41   0.18     220,464     2,915  2.66
    Zero-coupon
     convertible
     subordinated
     notes (6)                -        -      -     140,729     2,418  3.46
    3.875%
     convertible
     senior notes
     (6)                245,157    7,011   5.77     111,415     3,149  5.68
    Junior
     subordinated
     debentures          55,930    1,679   6.05      53,030     1,265  4.80
    Senior and
     subordinated
     notes              565,583    5,982   2.13     531,731    11,728  4.44
    Other long-
     term debt           91,050      738   1.63     152,511     2,756  3.63
    -----------          ------      ---   ----     -------     -----  ----
    Total interest-
     bearing
     liabilities      4,299,637   27,903   1.31   2,885,521    34,872  2.43
    Portion of
     noninterest-
     bearing
     funding
     sources          5,396,125                   3,167,021
    -------------     ---------   ------   ----   ---------    ------  ----
    Total funding
     sources          9,695,762   27,903   0.58   6,052,542    34,872  1.15
    -------------     ---------   ------   ----   ---------    ------  ----

    Noninterest-bearing
     funding sources:
    Demand deposits   4,886,071                   2,866,278
    Other
     liabilities        183,124                     244,411
    Discount on
     zero-coupon
     convertible
     subordinated
     notes (6)                -                       1,007
    SVBFG
     stockholders'
     equity (6)       1,011,203                     685,791
    Noncontrolling
     interests (7)      313,493                     271,975
    Portion used
     to fund
     interest-
     earning assets  (5,396,125)                 (3,167,021)
    ---------------  ----------                  ----------
    Total
     liabilities
     and total
     equity         $10,693,528                  $6,954,983
    ============    =========== ========   ====  ==========  ========  ====
    Net interest
     income and
     margin (6)                 $184,318   3.83%             $178,660  5.94%
                                ========   ====              ========  ====
    Total deposits   $8,181,546                  $4,541,919
                     ==========                  ==========
    Average SVBFG
     stockholders'
     equity as a
     percentage of
     average assets                        9.46%                       9.86%
                                           ====                        ====
    Reconciliation to
     reported net
     interest income:
    -----------------------
    Adjustments for taxable
     equivalent basis             (1,126)                      (1,086)
                                  ------                       ------
    Net interest income, as
     reported                   $183,192                     $177,574
                                ========                     ========

    (1) Includes average interest-bearing deposits in other financial
        institutions of $177.1 million and $91.0 million for the six months
        ended June 30, 2009 and 2008, respectively. For the six months ended
        June 30, 2009, balance also includes $2.8 billion deposited at the
        Federal Reserve Bank, earning interest at the Federal Funds target
        rate.
    (2) Yields on interest-earning investment securities do not give effect to
        changes in fair value that are reflected in other comprehensive
        income.
    (3) Interest income on non-taxable investment securities is presented on a
        fully taxable equivalent basis using the federal statutory tax rate of
        35.0 percent for all periods presented.
    (4) Nonaccrual loans are reflected in the average balances of loans.
    (5) Average investment securities of $468.7 million and $359.3 million for
        the six months ended June 30, 2009 and 2008, respectively, were
        classified as other assets as they were noninterest-earning assets.
        These investments primarily consisted of non-marketable securities.
    (6) Balances for all periods presented reflect our adoption of FSP
        APB 14-1. Refer to "Long-Term Debt" discussion for more details.
        Amounts for the six months ended June 30, 2008 have been
        retrospectively adjusted.
    (7) Our 2009 adoption of SFAS No. 160 requires us to reclassify our
        presentation of noncontrolling interests.

(Losses) Gains on Derivative Instruments, Net

                                          Three months ended
                                          ------------------
                                                              % Change
                                                              --------

    (Dollars in           June 30,  March 31,  June 30,  March 31,    June 30,
     thousands)              2009      2009      2008      2009         2008
    -----------              ----      ----      ----      ----         ----
    (Losses) gains on
     foreign exchange
     forward contracts, net:
      Gains on client
       foreign exchange
       forward
       contracts, net
       (1)                   $448      $496      $478      (9.7)%       (6.3)%
      (Losses) gains on
       internal foreign
       exchange forward
       contracts, net
       (2)                 (4,479)    1,943       624        NM           NM
                           ------     -----       ---       ---          ---
    Total (losses)
     gains on foreign
     exchange forward
     contracts, net        (4,031)    2,439     1,102        NM           NM

    Change in fair
     value of interest
     rate swap (3)              -      (170)      879    (100.0)      (100.0)
    Gains on covered
     call options, net
     (4)                        -         -       377         -       (100.0)

    Equity warrant assets:
      (Losses) gains on
       exercise, net          (42)      210       676    (120.0)      (106.2)
      Change in fair value (5):
        Cancellations
         and expirations
                           (1,276)   (1,198)     (488)      6.5        161.5
        Other changes
         in fair value      2,502       533     1,862        NM         34.4
                            -----       ---     -----       ---         ----
    Total net gains
     (losses) on equity
     warrant assets (6)     1,184      (455)    2,050        NM        (42.2)
                            -----      ----     -----       ---        -----

    Total (losses)
     gains on derivative
     instruments, net     $(2,847)   $1,814    $4,408        NM%      (164.6)%
                          =======    ======    ======       ===       ======


                                                       Six months ended
                                                   June 30,  June 30,   %
    (Dollars in thousands)                           2009      2008   Change
    ----------------------                           ----      ----   ------
    (Losses) gains on foreign exchange forward
     contracts, net:
      Gains on client foreign exchange forward
       contracts, net (1)                            $944    $1,206   (21.7)%
      (Losses) gains on internal foreign
       exchange forward contracts, net (2)         (2,536)   (2,467)    2.8
                                                   ------    ------     ---
    Total (losses) gains on foreign exchange
     forward contracts, net                        (1,592)   (1,261)   26.2

    Change in fair value of interest rate swap(3)    (170)      386  (144.0)
    Gains on covered call options, net (4)              -       377  (100.0)

    Equity warrant assets:
      (Losses) gains on exercise, net                 168     5,192   (96.8)
      Change in fair value (5):
        Cancellations and expirations              (2,474)     (945)  161.8
        Other changes in fair value                 3,035     3,258    (6.8)
                                                    -----     -----    ----
    Total net gains (losses) on equity warrant
     assets (6)                                       729     7,505   (90.3)
                                                      ---     -----   -----

    Total (losses) gains on derivative
     instruments, net                             $(1,033)   $7,007  (114.7)%
                                                  =======    ======  ======


    NM - Not meaningful

    (1) Represents the net gains for foreign exchange forward contracts
        executed on behalf of clients.
    (2) Represents the change in the fair value of foreign exchange forward
        contracts used to economically reduce our foreign exchange exposure
        risk related to certain foreign currency denominated loans.
        Revaluations of foreign currency denominated loans are recorded on the
        line item "Other" as part of noninterest income, a component of
        consolidated net income.
    (3) Represents the change in the fair value hedge of the junior
        subordinated debentures. In December 2008, our counterparty called
        this swap for settlement in January 2009. As a result, the swap is no
        longer designated as a hedging instrument.
    (4) Represents net gains on covered call options by one of our sponsored
        debt funds.
    (5) At June 30, 2009, we held warrants in 1,285 companies, compared to
        1,303 companies at March 31, 2009 and 1,217 companies at June 30,
        2008.
    (6) Includes net gains (losses) on equity warrant assets held by
        consolidated investment affiliates. Relevant amounts attributable to
        noncontrolling interests are reflected in the interim consolidated
        statements of income under the caption "Net Loss Attributable to
        Noncontrolling Interests."

Net Loss Attributable to Noncontrolling Interests (1)

                                  Three months ended        Six months ended
                                  ------------------        ----------------
                            June 30,  March 31,  June 30,  June 30,  June 30,
    (Dollars in thousands)    2009       2009      2008      2009      2008
    ----------------------  --------  ---------  --------  --------  --------
    Net interest loss
     (income) (2)                $16        $14     $(106)      $30     $(363)
    Noninterest loss
     (income) (2)              6,153     31,907    (1,528)   38,060      (553)
    Noninterest expense (2)    2,848      3,387     2,457     6,235     5,216
    Carried interest (3)         (56)    (1,315)      711    (1,371)    1,452
                                 ---     ------       ---    ------     -----
    Net loss attributable
     to noncontrolling
     interests                $8,961    $33,993    $1,534   $42,954    $5,752
                              ======    =======    ======   =======    ======


    (1) Our 2009 adoption of SFAS No. 160 requires us to reclassify our
        presentation of noncontrolling interests.
    (2) Represents noncontrolling interests share in net interest income,
        noninterest income (loss), and noninterest expense.
    (3) Represents the change in the preferred allocation of income we earn as
        general partners managing two of our managed funds of funds and the
        preferred allocation earned by the general partner entity managing one
        of our consolidated sponsored debt funds.

Reconciliation of Basic and Diluted Weighted Average Common Shares Outstanding

                                   Three months ended       Six months ended
                                   ------------------       ----------------
                                June 30,  March 31, June 30, June 30, June 30,
    (Shares in thousands)         2009      2009     2008      2009     2008
    ---------------------         ----      ----     ----      ----     ----
    Weighted average common
     shares outstanding-
     basic                      32,952     32,932   32,054    32,960   32,167
    Effect of dilutive
     securities:
      Stock options                126          -      968         -      984
      Restricted stock awards
       and units                     -          -       87         -       38
      Zero-coupon convertible
       subordinated notes
       (1)                           -          -    1,083         -    1,158
      Warrants associated
       with zero-coupon
       convertible
       subordinated notes
       (1)                           -          -        -         -        -
      3.875% convertible
       senior notes (2)              -          -        -         -        -
      Warrants associated
       with 3.875% convertible
       senior notes (2)              -          -        -         -        -
      Warrant associated with
       Capital Purchase
       Program (3)                   -          -        -         -        -
                                     -          -        -         -        -
    Total effect of
     dilutive securities           126          -    2,138         -    2,180
                                   ---        ---    -----       ---    -----
    Weighted average common
     shares outstanding-
     diluted                    33,078     32,932   34,192    32,960   34,347
                                ======     ======   ======    ======   ======


    (1) The dilutive effect of our convertible subordinated notes was
        calculated using the treasury stock method based on our average share
        price and was dilutive at an average share price of $33.6277. The
        associated warrants were dilutive beginning at an average share price
        of $51.34. These notes and the associated warrants matured on June 15,
        2008.
    (2) The dilutive effect of our convertible senior notes is calculated
        using the treasury stock method based on our average share price and
        is dilutive at an average share price of $53.04. The associated
        warrants are dilutive beginning at an average share price of $64.43.
        These notes are due on April 15, 2011 and the associated warrants
        expire ratably commencing on July 15, 2011.
    (3) The warrant associated with our participation in the CPP is dilutive
        beginning at an average share price of $49.78.

Due to the net loss applicable to common stockholders for the three months ended March 31, 2009 and the six months ended June 30, 2009, no potentially dilutive shares were included in the net loss per share calculation as including such shares would be anti-dilutive and reduce the reported net loss per share.

Credit Quality

                                                 Period end balances at
                                                 ----------------------
                                              June 30,    March 31,   June 30,
    (Dollars in thousands)                      2009         2009       2008
    ----------------------                      ----         ----       ----
    Nonperforming loans and assets:
    Nonperforming loans:
         Loans past due 90 days or more still
          accruing interest                       $55      $3,516     $1,151
         Nonaccrual loans                     111,406      97,641      8,497
                                              -------      ------      -----
    Total nonperforming loans                 111,461     101,157      9,648
    Other real estate owned                       450       1,200      1,612
                                                  ---       -----      -----
    Total nonperforming assets               $111,911    $102,357    $11,260
                                             ========    ========    =======

    Nonperforming loans as a percentage of
     total gross loans                           2.28%       2.01%      0.21%
    Nonperforming assets as a percentage
     of total assets                             0.98        0.93       0.15

    Allowance for loan losses                $110,473    $110,010    $52,888
         As a percentage of total gross
          loans                                  2.26%       2.18%      1.13%
         As a percentage of nonperforming
          loans                                 99.11      108.75     548.18
    Reserve for unfunded credit
     commitments (1)                          $11,266     $12,418    $14,081
    Total gross loans                       4,886,040   5,045,208  4,666,989
    Total unfunded credit commitments       4,963,654   5,072,604  5,034,283


    (1) The "Reserve for Unfunded Credit Commitments" is included as a
        component of "Other Liabilities".

Average Client Investment Funds (1)

                                     Three months ended      Six months ended
                                     -------------------     -----------------
                                 June 30, March 31, June 30, June 30, June 30,
    (Dollars in millions)          2009      2009     2008     2009     2008
    ---------------------        -------- --------- -------- -------- --------
    Client directed investment
     assets                       $11,039   $11,643  $12,734  $11,341  $12,754
    Client investment assets
     under management               5,412     5,834    6,006    5,623    6,190
    Sweep money market funds            -       224    2,649      112    2,698
                                      ---       ---    -----      ---    -----
    Total average client
     investment funds             $16,451   $17,701  $21,389  $17,076  $21,642
                                  =======   =======  =======  =======  =======


    (1) Client Investment Funds are maintained at third party financial
        institutions.

Average client investment funds decreased by $1.2 billion to $16.5 billion for the second quarter of 2009, compared to $17.7 billion for the first quarter of 2009, primarily due to a larger number of clients opting to be covered by FDIC insurance on deposits held in noninterest bearing deposit accounts rather than invest in the current low interest rate environment, as well as the full quarter effect of our discontinuation of a third-party, off-balance sheet sweep product completed in the first quarter of 2009.

Period-end total client investment funds were $16.0 billion at June 30, 2009, compared to $16.9 billion at March 31, 2009 and $21.9 billion at June 30, 2008.

Changes to Prior Period Balances

The table below highlights certain revised prior period items related to the revision of certain immaterial gains and losses on foreign exchange contracts that were incorrectly recorded in prior periods and to the adoption of FSP APB 14-1:

                                        Three months ended
                                      ----------------------
    (Dollars in
     thousands,
     except per         March     December   September      June      March
     share amounts)   31, 2009    31, 2008    30, 2008    30, 2008   31, 2008
    ---------------   --------    ---------  ----------   --------   --------
    AS REVISED
    Income Statement
    ----------------
    Interest
     expense -
     borrowings          $8,181     $10,219     $12,517    $11,695   $12,536
    Other
     noninterest
     income               2,782       1,858       1,913      5,759     9,522
    Income tax
     expense
     (benefit)           (2,448)        863      16,711     16,291    18,348
    Net income
     (loss)
     attributable to
     SVBFG               (8,235)        114      25,918     21,014    27,240
    Net income
     (loss)
     available to
     common
     stockholders       (11,771)       (593)     25,918     21,014    27,240
    Earnings (loss)
     per common
     share - diluted      (0.36)      (0.02)       0.77       0.61      0.79

    Fully Taxable Equivalent
    ------------------------
    Net interest
     income (fully
     taxable
     equivalent
     basis)             $92,083     $97,024     $95,206    $87,377   $91,283
    Net interest
     margin                3.97%       5.39%       5.70%      5.62%     6.27%

    Balance Sheet
    -------------
    Cash and due
     from banks      $3,360,199  $1,789,311    $371,425   $303,057  $301,888
    Total assets     10,955,015  10,018,280   8,070,315  7,310,010 6,897,163
    Long-term debt      964,175     995,423     976,189    969,588   892,516
    Additional paid-
     in capital          71,760      66,201      44,359     20,754    13,975
    Retained
     earnings           697,956     709,726     710,321    684,404   663,963

    ADJUSTMENTS DUE TO REVISION OF ERROR
    Income Statement
    ----------------
    Other
     noninterest
     income             $(1,971)    $(3,239)    $(1,309)      $578      $187
    Income tax
     expense
     (benefit)             (746)     (1,248)       (531)       215        65
    Net income
     (loss)
     attributable to
     SVBFG               (1,225)     (1,991)       (778)       363       122
    Net income
     (loss)
     available to
     common
     stockholders        (1,225)     (1,991)       (778)       363       122
    Earnings (loss)
     per common
     share - diluted      (0.04)      (0.06)      (0.02)      0.01         -

    Balance Sheet
    -------------
    Cash and due
     from banks         $(2,017)    $(2,085)    $(2,085)   $(2,085)  $(2,085)
    Total assets         (3,753)     (2,528)       (537)       241      (122)
    Retained
     earnings            (3,753)     (2,528)       (537)       241      (122)

    ADJUSTMENTS DUE TO APB 14-1
    Income Statement
    ----------------
    Interest
     expense -
     borrowings           N/A          $525        $518     $1,068    $1,303
    Income tax
     expense
     (benefit)            N/A          (208)       (206)      (424)     (518)
    Net income
     (loss)
     attributable to
     SVBFG                N/A          (317)       (312)      (644)     (785)
    Net income
     (loss)
     available to
     common
     stockholders         N/A          (317)       (312)      (644)     (785)

    Fully Taxable Equivalent
    ------------------------
    Net interest
     income (fully
     taxable
     equivalent
     basis)               N/A         $(525)      $(518)   $(1,068)  $(1,303)
    Net interest
     margin               N/A         (0.03)%     (0.03)%    (0.07)%   (0.09)%

    Balance Sheet
    -------------
    Total assets          N/A          $(84)       $(93)     $(102)     $(18)
    Long-term debt        N/A        (5,217)     (5,757)    (6,290)     (673)
    Additional paid-
     in capital           N/A        20,329      20,543     20,754    13,975
    Retained
     earnings             N/A       (15,196)    (14,879)   (14,566)  (13,993)


                                                               Year ended
    (Dollars in thousands, except per share amounts)       December 31, 2007
    ------------------------------------------------       -----------------
    AS REVISED
    Income Statement
    ----------------
    Interest expense - borrowings                                  $54,259
    Other noninterest income                                        26,096
    Income tax expense (benefit)                                    84,581
    Net income (loss) attributable to SVBFG                        120,329
    Net income (loss) available to common stockholders             120,329
    Earnings (loss) per common share - diluted                        3.28

    Fully Taxable Equivalent
    ------------------------
    Net interest income (fully taxable equivalent basis)          $377,115
    Net interest margin                                               7.19%

    Balance Sheet
    -------------
    Cash and due from banks                                       $324,510
    Total assets                                                 6,692,171
    Long-term debt                                                 873,241
    Additional paid-in capital                                      13,167
    Retained earnings                                              669,459

    ADJUSTMENTS DUE TO REVISION OF ERROR
    Income Statement
    ----------------
    Other noninterest income                                         $(415)
    Income tax expense (benefit)                                      (171)
    Net income (loss) attributable to SVBFG                           (244)
    Net income (loss) available to common stockholders                (244)
    Earnings (loss) per common share - diluted                       (0.01)

    Balance Sheet
    -------------
    Cash and due from banks                                          $(889)
    Total assets                                                      (244)
    Retained earnings                                                 (244)

    ADJUSTMENTS DUE TO APB 14-1
    Income Statement
    ----------------
    Interest expense - borrowings                                   $5,091
    Income tax expense (benefit)                                    (2,026)
    Net income (loss) attributable to SVBFG                         (3,065)
    Net income (loss) available to common stockholders              (3,065)

    Fully Taxable Equivalent
    ------------------------
    Net interest income (fully taxable equivalent basis)           $(5,091)
    Net interest margin                                              (0.10)%

    Balance Sheet
    -------------
    Total assets                                                      $(41)
    Long-term debt                                                  (2,013)
    Additional paid-in capital                                      13,167
    Retained earnings                                              (13,208)

Use of Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use certain non-GAAP measures (non-GAAP net income (loss), non-GAAP noninterest income, non-GAAP net losses on investment securities, non-GAAP noninterest expense, and non-GAAP financial ratios) of financial performance. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirement.

In particular, in this press release, we use certain non-GAAP measures that exclude from net income and certain other financial line items in certain periods:

    --  Income and expense attributable to noncontrolling interests - As part of
        our funds management business, we recognize the entire income or loss
        from certain funds where we own less than 100 percent. We are required
        under GAAP to consolidate 100 percent of the results of the funds that
        we are deemed to control or in which we have a majority ownership.
        Similarly, we are required under GAAP to consolidate the results of
        eProsper, of which we own 65 percent. The relevant amounts attributable
        to investors other than us are reflected under "Net Loss
        Attributable to Noncontrolling Interests." Our net income (loss)
        available to common stockholders reported in that section includes only
        the portion of income or loss related to our ownership interest.
    --  Non-tax deductible goodwill impairment charge of $4.1 million resulting
        from changes in our outlook for future financial performance of
        eProsper.

    --  Non-tax deductible noninterest expense of $3.9 million related to the
        conversion premium value of certain of our zero-coupon convertible notes
        that were converted prior to their maturity.

In addition, in this press release, we use certain non-GAAP financial ratios that are not required by GAAP or exclude certain financial items from their calculations that are otherwise required under GAAP:

    --  Tangible common equity to tangible assets ratio - This ratio is not
        required by GAAP or other applicable bank regulatory requirement, and is
        used by management to evaluate the adequacy of the Company's
        capital levels. Our ratio is calculated by dividing total SVBFG
        stockholder's equity, by total assets, after reducing both amounts
        by acquired intangibles and goodwill. The manner in which this ratio is
        calculated varies among companies. Accordingly, our ratio is not
        necessarily comparable to similar measures of other companies.

    --  Non-GAAP operating efficiency ratio - This ratio excludes certain
        financial items that are otherwise required under GAAP. It is calculated
        by dividing noninterest expense (excluding goodwill and the Coco Loss
        for applicable periods) by total taxable equivalent income, after
        reducing both amounts by taxable equivalent losses (income) attributable
        to noncontrolling interests for applicable periods.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures (as applicable), provide meaningful supplemental information regarding our performance by: (i) excluding amounts attributable to noncontrolling interests, where indicated, or certain items that do not occur in every reporting period, or (ii) providing additional information used by management that is not otherwise required by GAAP or other applicable requirement. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, net income, or other financial measures prepared in accordance with GAAP. In the financial table below, we have provided a reconciliation of, where applicable, the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release, or a reconciliation of the non-GAAP calculation of the financial measure.

                       SVB FINANCIAL GROUP AND SUBSIDIARIES
               RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS)
                                    (Unaudited)
                             Three months ended           Six months ended
                             -------------------          -----------------
    (Dollars in
     Thousands, except  June 30,   March 31,   June 30,   June 30,    June 30,
     share amounts)       2009       2009*       2008*      2009        2008*
    -----------------   --------   ---------   --------   --------    --------
    Net income
     (loss) available
     to common
     stockholders         $7,793   $(11,771)    $21,014    $(3,978)    $48,254
    Impairment of
     goodwill (1)              -      4,092           -      4,092           -
    Loss from cash
     settlement of
     conversion
     premium of zero-
     coupon
         convertible
     subordinated
     notes (2)                 -          -       3,858          -       3,858
                              --         --       -----         --       -----
    Non-GAAP net
     income (loss)
     available to
     common
     stockholders         $7,793    $(7,679)    $24,872       $114     $52,112
                          ======    =======     =======       ====     =======
    Weighted average
     diluted common
     shares
     outstanding      33,078,367 32,931,714  34,192,459 32,960,239  34,347,128


    * Certain amounts have been revised to reflect the correction of
      immaterial errors associated with previously recognized gains and losses
      on foreign exchange contracts. Refer to "Changes to Prior Period
      Balances" section for more details. Amounts for the three months
      ended March 31, 2009 and June 30, 2008, and the six months ended June
      30, 2008 have been retrospectively revised.

    (1) Non-tax deductible goodwill impairment charge for eProsper recognized
        in the first quarter of 2009.
    (2) Represents the portion of the conversion payment that exceeded the
        principal amount related to a conversion of $7.8 million of our zero-
        coupon convertible subordinated notes, which we settled in cash in the
        second quarter of 2008. This non-tax deductible loss did not have any
        impact on our tax provision.

                              Three months ended          Six months ended
                              ------------------          ----------------
    Non-GAAP
     noninterest
     income, net of
     noncontrolling
     interests
     (Dollars in          June 30,   March 31,   June 30,  June 30,   June 30,
     thousands)             2009        2009*      2008*     2009       2008*
    ---------------         ----        ----       ----      ----       ----
    GAAP noninterest
     income (loss)       $28,275     $(5,581)   $44,515   $22,694    $86,267
    Less: (losses)
     income
     attributable to
     noncontrolling
     interests,
     including
     carried
     interest             (6,097)    (30,592)       817   (36,689)      (899)
                          ------     -------        ---   -------       ----
    Non-GAAP
     noninterest
     income, net of
     noncontrolling
     interests           $34,372     $25,011    $43,698   $59,383    $87,166
    ---------------      =======     =======    =======   =======    =======


    * Certain amounts have been revised to reflect the correction of
      immaterial errors associated with previously recognized gains and losses
      on foreign exchange contracts. Refer to "Changes to Prior Period
      Balances" section for more details. Amounts for the three months
      ended March 31, 2009 and June 30, 2008, and the six months ended June
      30, 2008 have been retrospectively revised.


                                 Three months ended        Six months ended
                                 ------------------        ----------------
    Non-GAAP net gains
     (losses) on investment
     securities, net of
     noncontrolling
     interests                June 30,  March 31,  June 30, June 30,  June 30,
    (Dollars in thousands)      2009       2009      2008     2009      2008
    -----------------------     ----       ----      ----     ----      ----
    GAAP net (losses) gains
     on investment
     securities              $(6,750)  $(35,045)   $2,039 $(41,795)  $(4,073)
    Less: (losses) gains
     on investment
     securities
     attributable to
     noncontrolling
     interests,
       including carried
     interest                 (6,933)   (30,438)      452  (37,371)   (1,447)
                              ------    -------       ---  -------    ------
    Non-GAAP net gains
     (losses) on investment
     securities, net of
       noncontrolling
     interests                  $183    $(4,607)   $1,587  $(4,424)  $(2,626)
                                ====    =======    ======  =======   =======


                              Three months ended           Six months ended
                              ------------------           ----------------
    Non-GAAP
     operating
     efficiency ratio,
     net of
     noncontrolling
     interests
    (Dollars in
     Thousands,
     except               June 30,   March 31,  June 30,    June 30,  June 30,
     ratios)                2009       2009       2008        2009      2008
    ------------------      ----       ----       ----        ----      ----
    GAAP noninterest
     expense             $89,012     $87,140    $87,189   $176,152   $170,626
    Less: amounts
     attributable to
     noncontrolling
     interests             2,848       3,387      2,457      6,235      5,216
    Less: loss from
     cash settlement
     of conversion
     premium of zero-
     coupon
         convertible
     subordinated
     notes                     -           -      3,858          -      3,858
    Less:
     impairment of
     goodwill                  -       4,092          -      4,092          -
                              --       -----         --      -----         --
    Non-GAAP
     noninterest
     expense, net of
     noncontrolling
     interests           $86,164     $79,661    $80,874   $165,825   $161,552
                         =======     =======    =======   ========   ========

    GAAP taxable
     equivalent net
     interest income     $92,235      92,083    $87,377   $184,318   $178,660
    Less: (losses)
     income
     attributable to
     noncontrolling
     interests               (16)        (14)       106        (30)       363
                             ---         ---        ---        ---        ---
    Non-GAAP taxable
     equivalent net
     interest income,
     net of
     noncontrolling
     interests            92,251      92,097     87,271    184,348    178,297

    Non-GAAP
     noninterest
     income, net of
     noncontrolling
     interests            34,372      25,011     43,698     59,383     87,166
                          ------      ------     ------     ------     ------
    Non-GAAP taxable
     equivalent
     revenue, net of
     noncontrolling
     interests          $126,623    $117,108   $130,969   $243,731   $265,463
                        ========    ========   ========   ========   ========

    Non-GAAP
     operating
     efficiency ratio      68.05%      68.02%     61.75%     68.04%     60.86%
                           =====       =====      =====      =====      =====

    Non-GAAP non-marketable securities, net of
     noncontrolling interests                              June 30,  March 31,
    (Dollars in thousands)                                   2009      2009
    -------------------------------------------              ----      ----
    GAAP non-marketable securities                       $478,694    $454,527
    Less: noncontrolling interests in non-marketable
     securities                                           285,127     276,122
                                                          -------     -------
    Non-GAAP non-marketable securities, net of
     noncontrolling interests                            $193,567    $178,405
                                                         ========    ========

    Non-GAAP tangible common equity        June 30,     March 31,     June 30,
     and tangible assets (Dollars
     in Thousands, except
     ratios)                                2009        2009*         2008*
    --------------------------------       ----         ----          ----
    SVBFG stockholders' equity          $1,019,219     $988,370      $691,556
    Less:
        Preferred stock                    222,391      221,783             -
        Goodwill                                 -            -         4,092
        Intangible assets                      774          822         1,340
                                               ---          ---         -----
    Tangible common equity                $796,054     $765,765      $686,124
                                          ========     ========      ========

    Total assets                       $11,465,887  $10,955,015    $7,310,010
    Less:
        Goodwill                                 -            -         4,092
        Intangible assets                      774          822         1,340
                                               ---          ---         -----
    Tangible assets                    $11,465,113  $10,954,193    $7,304,578
                                       ===========  ===========    ==========

    Risk-weighted assets                $7,549,912   $7,533,338    $7,060,052

    Tangible common equity to
     tangible assets                          6.94%        6.99%         9.39%
    Tangible common equity to risk-
     weighted assets                         10.54        10.17          9.72
    ----------------

    * Certain amounts have been revised to reflect the correction of
      immaterial errors associated with previously recognized gains and losses
      on foreign exchange contracts. Refer to "Changes to Prior Period
      Balances" section for more details. Amounts for March 31, 2009 and June
      30, 2008 have been retrospectively revised.

SOURCE SVB Financial Group

http://www.svb.com

Copyright (C) 2009 PR Newswire. All rights reserved