SVB Financial Group
Oct 22, 2009

SVB Financial Group Announces 2009 Third Quarter Financial Results

SANTA CLARA, Calif., Oct 22, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- SVB Financial Group (Nasdaq: SIVB) today announced financial results for the third quarter ended September 30, 2009.

Consolidated net income available to common stockholders for the third quarter of 2009 was $20.6 million, or $0.61 per diluted common share, compared to $7.8 million, or $0.24 per diluted common share, for the second quarter of 2009, and $25.9 million, or $0.77 per diluted common share, for the third quarter of 2008.

Highlights of our third quarter 2009 results included:

    --  Provision for loan losses of $8.0 million, a decrease of $13.4 million
        compared to the second quarter of 2009. The decrease was primarily due
        to: (i) an $11.4 million partial recovery of a single loan that was
        previously charged off in the first quarter of 2009, (ii) a reduction of
        required reserves for impaired loans, and (iii) an overall improvement
        in the credit quality of our loan portfolio.
    --  A decrease of $23.8 million and $39.3 million in our allowance for loan
        losses and nonperforming loans, respectively, primarily due to the
        finalization of the HRJ Capital ("HRJ") transaction, as well as the
        charge-offs of certain other impaired loans from our software and
        hardware client portfolios.
    --  An increase in net interest income (fully taxable equivalent basis) of
        $5.1 million, primarily due to growth in average investment securities
        balances of $681.9 million, or 37.2 percent, from purchases of
        agency-issued collateralized mortgage obligations and U.S. agency
        securities.
    --  A decrease of $9.2 million in noninterest expense, primarily due to
        lower Federal Deposit Insurance Corporation ("FDIC") assessments in the
        third quarter of 2009 compared to the second quarter of 2009.
    --  Growth in average deposit balances of $477.8 million, or 5.7 percent, to
        $8.9 billion, primarily due to the desire among some clients to benefit
        from the security provided by the FDIC insurance for noninterest-bearing
        accounts, as well as to the lack of attractive alternative investment
        opportunities due to the current low interest rate environment.

    --  A decrease in average loan balances of $235.5 million, or 4.9 percent,
        reflecting continued efforts by some clients to de-leverage their
        businesses.

Consolidated net income available to common stockholders for the nine months ended September 30, 2009 was $16.6 million, or $0.50 per diluted common share, compared to $74.2 million, or $2.17 per diluted common share, for the comparable 2008 period.

"While the economy is still vulnerable, interest rates remain low, and we see many challenges ahead, we are doing the right things to deliver the best possible results, given the current environment," said Ken Wilcox, president and CEO of SVB Financial Group. "Credit quality is improving overall, and we were able to satisfactorily resolve a number of outstanding credit issues in the third quarter. We are also seeing signs of relative improvement among our client base, including improving technology sales pipelines among our technology clients, and stabilizing portfolio company valuations. It is too early to know whether we are at the beginning of a sustainable market recovery. Until that becomes clearer, we will continue to focus on leveraging our financial and market strength to further enhance our competitive position and our ability to deliver stable credit performance."


    Third Quarter 2009 Summary


                                        Three months ended
                                        ------------------
                                                            % Change from
                                                            -------------
    (Dollars in
     millions,
     except share
     data and
     ratios)           September     June      September    June    September
                        30, 2009   30, 2009    30, 2008*  30, 2009   30, 2008
    ----------------    -------    --------     -------   --------   --------
    Income Statement:
    Diluted
     earnings per
     common share
     (1)                  $0.61       $0.24       $0.77    154.2%      (20.8)%
    Net income
     attributable to
     SVBFG (1)             24.2        11.3        25.9    114.2        (6.6)
    Net income
     available to
     common
     stockholders
     (1)                   20.6         7.8        25.9    164.1       (20.5)
    Net interest
     income (1)            96.8        91.7        94.6      5.6         2.3
    Provision for
     loan losses            8.0        21.4        13.7    (62.6)      (41.6)
    Noninterest
     income                34.3        28.3        40.4     21.2       (15.1)
    Noninterest
     expense               79.8        89.0        80.4    (10.3)       (0.7)
    Non-GAAP net
     income
     available to
     common
     stockholders
     (1)(2)                20.6         7.8        25.9    164.1       (20.5)
    Non-GAAP
     noninterest
     income, net of
     noncontrolling
     interests (2)         29.2        34.4        39.4    (15.1)      (25.9)
    Non-GAAP
     noninterest
     expense, net of
     noncontrolling
     interests (2)         76.9        86.2        77.6    (10.8)       (0.9)

    Fully Taxable Equivalent:
      Net interest
       income
       (1)(3)             $97.4       $92.2       $95.2      5.6%        2.3%
      Net interest
       margin (1)          3.70%       3.71%       5.70%    (0.3)      (35.1)

    Shares Outstanding:
      Common         33,202,387  33,142,568  32,735,732      0.2%        1.4%
      Basic weighted
       average       33,176,678  32,951,905  32,534,613      0.7         2.0
      Diluted
       weighted
       average       33,672,491  33,078,367  33,778,095      1.8        (0.3)

    Balance Sheet:
    Average total
     assets (1)       $11,410.6   $10,928.0    $7,547.8      4.4%       51.2%
    Average loans,
     net of unearned
     income             4,544.5     4,780.0     4,863.7     (4.9)       (6.6)
    Average
     interest-
     earning
     investment
     securities         2,514.6     1,832.7     1,396.2     37.2        80.1
    Average
     noninterest-
     bearing demand
     deposits           5,373.5     5,132.8     2,826.3      4.7        90.1
    Average
     interest-
     bearing
     deposits           3,536.9     3,299.7     1,994.0      7.2        77.4
    Average total
     deposits           8,910.4     8,432.6     4,820.3      5.7        84.9
    Average short-
     term borrowings       42.1        45.8       544.3     (8.1)      (92.3)
    Average long-
     term debt (1)        912.2       945.4       970.8     (3.5)       (6.0)
    Period-end
     total assets
     (1)               12,538.6    11,465.9     8,070.3      9.4        55.4
    Period-end
     loans, net of
     unearned income    4,655.8     4,844.3     5,285.1     (3.9)      (11.9)
    Period-end
     investment
     securities         3,491.3     2,638.4     1,780.0     32.3        96.1
    Period-end
     noninterest-
     bearing demand
     deposits           6,422.9     5,551.2     3,231.3     15.7        98.8
    Period-end
     interest-
     bearing
     deposits           3,632.7     3,443.4     2,201.3      5.5        65.0
    Period-end
     total deposits    10,055.6     8,994.6     5,432.6     11.8        85.1

    Off-Balance Sheet:
    Average total
     client
     investment
     funds            $16,121.5   $16,450.5   $22,036.0     (2.0)%     (26.8)%
    Period-end
     total client
     investment
     funds             16,433.8    15,972.8    21,533.8      2.9       (23.7)
    Total unfunded
     credit
     commitments        4,794.5     4,963.7     5,619.0     (3.4)      (14.7)

    Earnings Ratios:
    Return on
     average assets
     (1)(4)                0.84%       0.42%       1.37%   100.0%      (38.7)%
    Return on
     average common
     SVBFG
     stockholders'
     equity
     (1)(5)(6)             9.94        3.95       14.37    151.6       (30.8)

    Asset Quality Ratios:
    Allowance for
     loan losses as
     a percentage of
     total gross
     loans                 1.85%       2.26%       1.13%   (18.1)%      63.7%
    Gross charge-
     offs as a
     percentage of
     average total
     gross loans
     (annualized)          4.03        1.82        0.57    121.4        NM
    Net charge-offs
     as a percentage
     of average
     total gross
     loans
     (annualized)          2.75        1.74        0.51     58.0        NM

    Other Ratios:
    Total risk-
     based capital
     ratio                19.24%      18.46%      14.25%     4.2%       35.0%
    Operating
     efficiency
     ratio (1)(7)         60.61       73.86       59.30    (17.9)        2.2
    Period-end
     loans, net of
     unearned
     income, to
     deposits             46.30       53.86       97.28    (14.0)      (52.4)
    Average loans,
     net of unearned
     income, to
     deposits             51.00       56.68      100.90    (10.0)      (49.5)

    Non-GAAP Ratios: (1)(2)
    Tangible common
     equity to
     tangible
     assets                6.73%       6.94%       9.06%    (3.0)%     (25.7)%
    Tangible common
     equity to risk-
     weighted assets      11.44       10.54        9.28      8.5        23.3
    Non-GAAP return
     on average
     assets (8)            0.84        0.42        1.37    100.0       (38.7)
    Non-GAAP return
     on average
     common SVBFG
     stockholders'
     equity (6)(9)         9.94        3.95       14.37    151.6       (30.8)
    Non-GAAP
     operating
     efficiency
     ratio                60.79       68.05       57.68    (10.7)        5.4

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




                                                     Nine months ended
                                                     -----------------

    (Dollars in millions, except share data
     and ratios)                               September   September     %
                                               30, 2009     30, 2008* Change
    ------------------                           -------     -------  ------
    Income Statement:
    Diluted earnings per common share (1)          $0.50       $2.17   (77.0)%
    Net income attributable to SVBFG (1)            27.3        74.2   (63.2)
    Net income available to common
     stockholders (1)                               16.6        74.2   (77.6)
    Net interest income (1)                        280.0       272.2     2.9
    Provision for loan losses                       72.9        29.8   144.6
    Noninterest income                              57.0       126.7   (55.0)
    Noninterest expense                            256.0       251.1     2.0
    Non-GAAP net income available to
     common stockholders (1)(2)                     20.7        78.0   (73.5)
    Non-GAAP noninterest income, net of
     noncontrolling interests (2)                   88.6       126.6   (30.0)
    Non-GAAP noninterest expense, net of
     noncontrolling interests (2)                  242.8       239.1     1.5

    Fully Taxable Equivalent:
      Net interest income (1)(3)                  $281.7      $273.9     2.8%
      Net interest margin (1)                       3.79%       5.85%  (35.2)

    Shares Outstanding:
      Common                                  33,202,387  32,735,732     1.4%
      Basic weighted average                  33,033,179  32,295,612     2.3
      Diluted weighted average                33,247,740  34,255,320    (2.9)

    Balance Sheet:
    Average total assets (1)                   $10,935.2    $7,153.7    52.9%
    Average loans, net of unearned income        4,811.5     4,433.7     8.5
    Average interest-earning investment
     securities                                  1,941.0     1,332.1    45.7
    Average noninterest-bearing demand
     deposits                                    5,050.3     2,852.9    77.0
    Average interest-bearing deposits            3,376.8     1,782.5    89.4
    Average total deposits                       8,427.2     4,635.4    81.8
    Average short-term borrowings                   45.0       329.2   (86.3)
    Average long-term debt (1)                     942.4       984.1    (4.2)
    Period-end total assets (1)                 12,538.6     8,070.3    55.4
    Period-end loans, net of unearned income     4,655.8     5,285.1   (11.9)
    Period-end investment securities             3,491.3     1,780.0    96.1
    Period-end noninterest-bearing demand
     deposits                                    6,422.9     3,231.3    98.8
    Period-end interest-bearing deposits         3,632.7     2,201.3    65.0
    Period-end total deposits                   10,055.6     5,432.6    85.1

    Off-Balance Sheet:
    Average total client investment funds      $16,757.8   $21,773.0   (23.0)%
    Period-end total client investment funds    16,433.8    21,533.8   (23.7)
    Total unfunded credit commitments            4,794.5     5,619.0   (14.7)

    Earnings Ratios:
    Return on average assets (1)(4)                 0.33%       1.38%  (76.1)%
    Return on average common SVBFG
     stockholders' equity (1)(5)(6)                 2.78       14.25   (80.5)

    Asset Quality Ratios:
    Allowance for loan losses as a
     percentage of total gross loans                1.85%       1.13%   63.7%
    Gross charge-offs as a percentage of
     average total gross loans (annualized)         3.04        0.67    NM
    Net charge-offs as a percentage of
     average total gross loans (annualized)         2.58        0.50    NM

    Other Ratios:
    Total risk-based capital ratio                 19.24%      14.25%   35.0%
    Operating efficiency ratio (1)(7)              75.58       62.67    20.6
    Period-end loans, net of unearned
     income, to deposits                           46.30       97.28   (52.4)
    Average loans, net of unearned income,
     to deposits                                   57.09       95.65   (40.3)

    Non-GAAP Ratios: (1)(2)
    Tangible common equity to tangible
     assets                                         6.73%       9.06%  (25.7)%
    Tangible common equity to risk-weighted
     assets                                        11.44        9.28    23.3
    Non-GAAP return on average assets (8)           0.38        1.46   (74.0)
    Non-GAAP return on average common SVBFG
     stockholders' equity (6)(9)                    3.46       14.99   (76.9)
    Non-GAAP operating efficiency ratio            65.56       59.79     9.7

    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        5.44   (26.5)
    --------------------------------------
    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 and nine months ended September 30, 2008, have been revised.
    (1)  Balances, results and ratios for all periods presented reflect our
         adoption of Financial Accounting Standards Board ("FASB") Accounting
         Standards Codification ("ASC") 470-20 (formerly known as 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"). Refer to "Long-Term Debt" discussion for more details.
         Amounts for the three and nine months ended September 30, 2008 have
         been retrospectively adjusted.
    (2)  A reconciliation of non-GAAP calculations to GAAP is provided below
         under the section "Use of Non-GAAP Financial Measures".
    (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 $0.5
         million for the quarter ended September 30, 2009 and  $0.6 million
         for both of the quarters ended June 30, 2009 and September 30, 2008.
         The taxable equivalent adjustments were $1.7 million for  both the
         nine months ended September 30, 2009 and 2008.
    (4)  Ratio represents annualized consolidated net income attributable to
         SVB Financial Group ("SVBFG") divided by quarterly average assets
         and year-to-date average assets.
    (5)  Ratio represents annualized consolidated net income 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 new accounting standards (ASC 810-10-65,
         formerly known as SFAS No. 160, Noncontrolling Interests in
         Consolidated Financial Statements - an amendment of Accounting
         Research Bulletin No. 51)("SFAS No. 160") required us to reclassify
         our presentation of noncontrolling 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
         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
         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 $97.4 million for the third quarter of 2009, compared to $92.2 million for the second quarter of 2009 and $95.2 million for the third 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 second to the third 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:


                                                    Q3'09 compared to Q2'09
                                                  ---------------------------
                                                      Increase (decrease)
                                                       due to change in
                                                  ---------------------------
    (Dollars in thousands)                        Volume     Rate      Total
    ----------------------                        ------     ----      -----
    Interest income:
        Short-term investment securities              $2     $(120)    $(118)
        Investment securities                      6,355    (1,620)    4,735
        Loans                                     (3,657)    2,458    (1,199)
                                                  ------     -----    ------
    Increase in interest income, net               2,700       718     3,418
                                                   -----     -----     -----

    Interest expense:
        Deposits                                     410    (1,214)     (804)
        Short-term borrowings                         (2)       (2)       (4)
        Long-term debt                              (103)     (796)     (899)
                                                    ----      ----      ----
    Increase (decrease) in interest expense, net     305    (2,012)   (1,707)
                                                  ------    ------    ------
    Increase in net interest income               $2,395    $2,730    $5,125
                                                  ======    ======    ======

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

    --  An increase in interest income of $4.7 million from our interest-earning
        investment securities portfolio, primarily related to the growth in
        average balances of $681.9 million due to new investments. These
        investments were primarily for purchases of agency-issued collateralized
        mortgage obligations and U.S. agency securities, which were purchased
        with excess cash as a result of our continued growth in deposits.
    --  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 expense of $0.8 million from interest-bearing
        deposits due to our decision to lower certain deposit interest rates in
        the third quarter of 2009 to reflect current market interest rates.

    --  The above increases were partially offset by a decrease in interest
        income from our loan portfolio of $1.2 million driven principally by a
        decrease in average loan balances of $235.5 million, partially offset by
        an increase in recovered interest from previously charged-off loans. Our
        average prime-lending rate was 4.00 percent for both the second and
        third quarters of 2009.

Net interest margin, on a fully taxable equivalent basis, was 3.70 percent for the third quarter of 2009, compared to 3.71 percent for the second quarter of 2009 and 5.70 percent for the third quarter of 2008. The nominal decrease from the second to the third quarter of 2009 was primarily a result of a decline in loan balances and an increase in deposits, which were invested in overnight cash with the Federal Reserve earning 25 basis points throughout the third quarter of 2009. The decline was partially offset by new investments in interest-earning securities.

Net interest margin, on a fully taxable equivalent basis, was 3.79 percent for the nine months ended September 30, 2009, compared to 5.85 percent for the comparable 2008 period. While net interest margin declined year-over-year, net interest income, on a fully taxable equivalent basis, increased to $281.7 million for the nine months ended September 30, 2009, compared to $273.9 million for the comparable 2008 period.

On an average basis, for the third quarter of 2009, 71.0 percent, or $3.3 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 71.0 percent, or $3.5 billion, for the second quarter of 2009 and 73.4 percent, or $3.7 billion, for the third 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 $3.5 billion at September 30, 2009, compared to $2.6 billion at June 30, 2009 and $1.8 billion at September 30, 2008. The increase from the second to the third quarter of 2009 was primarily due to purchases of agency-issued collateralized mortgage obligations and U.S. agency securities as part of our overall investment strategy to invest excess cash from our continued growth in deposits.

Average interest-earning investment securities were $2.5 billion for the third quarter of 2009, compared to $1.8 billion for the second quarter of 2009 and $1.4 billion for the third quarter of 2008.

Non-marketable securities were $507.9 million ($211.9 million net of noncontrolling interests) as of September 30, 2009, compared to $478.7 million ($193.6 million net of noncontrolling interests) as of June 30, 2009. The increase from the second to the third quarter of 2009 was primarily attributable to additional capital calls for fund investments in the third 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 $4.5 billion for the third quarter of 2009, compared to $4.8 billion for the second quarter of 2009 and $4.9 billion for the third quarter of 2008. The decrease in average loan balances from the second to the third quarter of 2009 came primarily from decreases in loans to software and hardware clients, reflecting continued efforts by some clients to de-leverage their businesses. Period-end loans, net of unearned income, were $4.7 billion at September 30, 2009, compared to $4.8 billion at June 30, 2009 and $5.3 billion at September 30, 2008.

Our nonaccrual loans totaled $72.2 million at September 30, 2009, compared to $111.4 million at June 30, 2009 and $9.1 million at September 30, 2008. The allowance for loan losses related to nonaccrual loans was $23.4 million, $44.6 million and $5.9 million at September 30, 2009, June 30, 2009 and September 30, 2008, respectively. The decrease in nonaccrual loans and related allowance for loan losses from the second to the third quarter of 2009 came primarily from the finalization of the HRJ transaction as well as the charge-offs of other impaired loans from our software and hardware client portfolios.

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


                                        Loans individually greater than $20
                                                     million at
                                      ----------------------------------------
    (Dollars in thousands, except     September 30,   June 30,   September 30,
     ratios and client data)               2009          2009          2008
    -----------------------------          ----          ----          ----
    Technology                          $458,901      $529,534      $531,897
    Private Equity                       272,920       247,702       531,630
    Life Sciences                         45,717        25,376        60,039
    Private Client Services               69,652        99,407        99,774
    Premium Wineries                      20,307             -             -
    All other sectors                     21,000        21,000        72,937
                                          ------        ------        ------
    Total                               $888,497      $923,019    $1,296,277
                                        ========      ========    ==========

    Loans individually greater than
     $20 million as a percentage of
     total gross loans                      18.9%         18.9%         24.4%
    Total clients with loans
     individually greater than $20
     million                                  28            28            40
    Loans individually greater than
     $20 million on nonaccrual status    $20,022       $68,029            $-
    Loans individually greater than
     $20 million on nonaccrual status
     as a percentage of total loans
     greater than $20 million                2.3%          7.4%            -%

The decrease in loans individually greater than $20 million from June 30, 2009 to September 30, 2009 was primarily due to clients using cash on their balance sheet to de-leverage their businesses.

The decrease in loans individually greater than $20 million on nonaccrual status from June 30, 2009 to September 30, 2009 was primarily due to the finalization of the HRJ transaction.

Deposits

Average deposits were $8.9 billion for the third quarter of 2009, compared to $8.4 billion for the second quarter of 2009 and $4.8 billion for the third quarter of 2008. The increase in average deposit balances from the second to the third quarter of 2009 came primarily from our noninterest-bearing demand deposits, which grew by $240.6 million to $5.4 billion, and our sweep deposits, which grew by $148.8 million to $1.9 billion.

Growth in average balances of noninterest-bearing deposits in the third quarter of 2009 was primarily due to the desire among some clients to benefit from the security provided by the FDIC insurance for noninterest-bearing accounts, as well as to the lack of attractive alternative investment opportunities due to the current low interest rate environment. Growth in average balances of our sweep deposits in the third quarter of 2009 was primarily due to increases in balances from our corporate technology clients.

Period-end deposits were $10.1 billion at September 30, 2009, compared to $9.0 billion at June 30, 2009 and $5.4 billion at September 30, 2008. The increase at September 30, 2009 compared to June 30, 2009 was primarily driven by a large deposit of approximately $0.9 billion related to client capital calls for investments on the last day of the third quarter of 2009, which was subsequently withdrawn.

Long-Term Debt

Effective January 1, 2009, we adopted the FASB guidance on debt with conversion options (ASC 470-20 formerly known as FSP APB 14-1), which required a change in the accounting treatment for our convertible debt instruments. The standard 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 standard'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 these requirements, our net income available to common stockholders for both the second and third quarters of 2009 decreased by $0.3 million. Details of certain prior period revised items related to the adoption of this guidance are provided below under the section "Changes to Prior Period Balances."

Noninterest Income

Noninterest income was $34.3 million for the third quarter of 2009, compared to $28.3 million for the second quarter of 2009 and $40.4 million for the third quarter of 2008.

The increase in noninterest income from the second to the third quarter of 2009 was primarily driven by the following factors:


    *  Net gains on investment securities of $3.9 million for the third
       quarter of 2009, compared to net losses of $6.8 million for the second
       quarter of 2009 and net losses of $0.9 million for the third quarter
       of 2008. The net gains of $3.9 million in the third quarter of 2009
       were primarily due to realized gains of $3.1 million from
       distributions made to our managed funds of funds and unrealized gains
       of $2.9 million from our managed co-investment funds as a result of
       higher valuations. These gains were partially offset by impairment
       losses of $2.2 million primarily from our private equity fund
       investments, due principally to sustained valuation decreases in
       underlying portfolio companies. The following table provides a
       summary of net gains (losses) on investment securities for the
       three months ended September 30, 2009 and June 30, 2009:

                                        Three months ended
                                        -------------------
                                                                      June 30,
                                    September 30, 2009                  2009
                                    ------------------                 -----
                     Managed Co-    Managed
    (Dollars in       Investment    Funds Of  Debt
     thousands)          Funds        Funds   Funds   Other   Total     Total
    -----------      -----------   ---------  -----   -----   -----     -----
    Unrealized
     gains (losses)    $2,896        $(366)    $85       $-  $2,615   $(7,362)
    Realized
     (losses) gains      (342)       3,146     657   (2,171)  1,290       612
                         ----        -----     ---   ------   -----       ---
    Total gains
     (losses) on
     investment
     securities, net   $2,554       $2,780    $742  $(2,171) $3,905   $(6,750)
                       ======       ======    ====  =======  ======   =======
    Less: income
     (losses)
     attributable to
     noncontrolling
     interests,
     including
     carried
     interest           2,328        2,511      41        -   4,880    (6,933)
                        -----        -----     ---      ---   -----    ------
    Non-GAAP net
     gains (losses)
     on investment
     securities, net
     of
     noncontrolling
     interests           $226         $269    $701  $(2,171)  $(975)     $183
                         ====         ====    ====  =======   =====      ====

    As of September 30, 2009, we held investments, either directly or through
    seven of our managed investment funds, in 437 venture capital and private
    equity funds, 76 companies and five debt funds.

    *  Net losses on derivative instruments of $1.1 million for the third
       quarter of 2009, compared to net losses of $2.8 million for the second
       quarter of 2009 and net gains of $6.5 million for the third quarter of
       2008. The following table provides a summary of our net (losses) gains
       on derivative instruments:


                                Three months ended         Nine months ended
                                ------------------         -----------------
                          September    June    September  September  September
    (Dollars in
     thousands)            30, 2009  30, 2009   30, 2008   30, 2009   30, 2008
    -----------             -------   -------   -------    -------    -------
    Gains (losses) on
     foreign exchange
     forward contracts, net:
      Gains on client
       foreign exchange
       forward contracts,
       net                      $360     $448       $561     $1,304     $1,767
      (Losses) gains on
       internal foreign
       exchange forward
       contracts, net (1)       (128)  (4,479)     4,452     (2,664)     1,985
                                ----   ------      -----     ------      -----
    Total gains (losses)
     on foreign exchange
     forward contracts,
     net                         232   (4,031)     5,013     (1,360)     3,752
    Change in fair value
     of interest rate
     swap                          -        -        (10)      (170)       376
    Gains on covered
     call options (2)              -        -         24          -        402
    Net (losses) gains
     on equity warrant
     assets                   (1,322)   1,184      1,445       (593)     8,949
                              ------    -----      -----       ----      -----
    Total (losses) gains
     on derivative
     instruments, net        $(1,090) $(2,847)    $6,472    $(2,123)   $13,479
                             =======  =======     ======    =======    =======
    ----------------------

    (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, 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 second to the third quarter of 2009 was primarily driven by the
         following factors:

           o  Net losses of $0.1 million from foreign exchange forward
              contracts hedging our foreign currency denominated loans in the
              third quarter of 2009, compared to net losses of $4.5 million
              in the second quarter of 2009. These losses were offset by
              comparable net gains included in other noninterest income.

           o  Net losses on equity warrant assets of $1.3 million in the
              third quarter of 2009, compared to net gains of $1.2 million in
              the second quarter of 2009. The net losses on equity warrant
              assets of $1.3 million was driven by $1.2 million from warrant
              terminations, net losses of $0.5 million from the exercise of
              certain warrant positions and $0.4 million from valuation
              decreases in our private warrant portfolio. These losses were
              partially offset by gains of $0.8 million from share price
              increases of certain investments in our public company warrant
              portfolio.

    *    A decrease in other noninterest income of $6.6 million, mainly
         driven by net gains of $0.2 million from revaluation of our foreign
         currency denominated loans and non-marketable investment securities
         for the third quarter of 2009, compared to net gains of $5.7 million
         for the second quarter of 2009. The net gains of $0.2 million for
         the third quarter of 2009 were primarily due to revaluation gains
         from one of our private equity fund investments.

Non-GAAP noninterest income, net of noncontrolling interests, was $29.2 million for the third quarter of 2009, compared to $34.4 million for the second quarter of 2009 and $39.4 million for the third quarter of 2008. Reconciliations of our non-GAAP noninterest income and non-GAAP net gains (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."

Noninterest Expense

Noninterest expense was $79.8 million for the third quarter of 2009, compared to $89.0 million for the second quarter of 2009 and $80.4 million for the third quarter of 2008.

The following table provides a summary of certain noninterest expense items:


                                 Three months ended        Nine months ended
                               ---------------------      -------------------
    (Dollars in            September    June   September  September  September
     thousands)             30, 2009 30, 2009  30, 2008   30, 2009   30, 2008
    -----------             ------- -------    -------    -------    -------
    Compensation and benefits:
      Salaries and wages     $26,100 $26,874    $25,480    $81,936    $76,042
      Incentive
       Compensation Plan       6,732   5,520     10,320     17,291     33,180
      Employee Stock
       Ownership Plan              -       -      1,192          -      4,605
      Other employee
       benefits               12,983  14,553     12,606     41,815     39,611
                              ------  ------     ------     ------     ------
    Total compensation
     and benefits             45,815  46,947     49,598    141,042    153,438
    FDIC assessments           2,589   8,589        671     13,853      1,807
    Impairment of
     goodwill                      -       -          -      4,092          -
    Provision for
     (reduction of)
     unfunded credit
     commitments                  65  (1,147)      (990)    (3,366)      (355)
    Other (1)                 31,338  34,623     31,152    100,338     96,167
                              ------  ------     ------    -------     ------
    Total noninterest
     expense                 $79,807 $89,012    $80,431   $255,959   $251,057
                             ======= =======    =======   ========   ========

    Full-time equivalent
     employees                 1,259   1,260      1,237      1,259      1,237
                               =====   =====      =====      =====      =====
    -----------------------

    (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 decrease in noninterest expense from the second to the third quarter of 2009 was primarily attributable to the following:

    --  A decrease of $6.0 million in FDIC assessments primarily attributable to
        a $5.0 million special assessment recorded in the second quarter of
        2009, mandated for all banks by the FDIC, as well as from a decrease in
        fees from lower assessment rates calculated by the FDIC in the third
        quarter of 2009.
    --  A decrease of $3.3 million in other noninterest expense.

    --  A provision for unfunded credit commitments of $0.1 million for the
        third quarter of 2009, compared to a (reduction of) provision of $1.1
        million for the second quarter of 2009. Total unfunded credit
        commitments were $4.8 billion as of September 30, 2009, compared to $5.0
        billion at June 30, 2009.

Non-GAAP noninterest expense, net of noncontrolling interests, was $76.9 million for the third quarter of 2009, compared to $86.2 million for the second quarter of 2009 and $77.6 million for the third 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."

Income Tax Expense

Effective January 1, 2009, we adopted new accounting standards (ASC 810-10-65, formerly known as SFAS No. 160), which requires us to clearly identify and distinguish between the interests of the Company and the interests 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 by the sum of income before income tax expense and the net (income) loss attributable to noncontrolling interests.

Our effective tax rate was 41.1 percent for the third quarter of 2009, compared to 38.8 percent for the second quarter of 2009 and 39.2 percent for the third quarter of 2008. The increase in the tax rate from the second to the third quarter of 2009 was primarily attributable to the lower tax impact of tax advantaged investments on our overall pre-tax income as well as the tax impact of higher non-deductible officers' compensation expense on overall pre-tax income.

Our effective tax rate was 44.2 percent for nine months ended September 30, 2009, compared to 40.9 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 as well as the tax impact of higher non-deductible officers' compensation expense on overall pre-tax income.

Credit Quality

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


                           Three months ended            Nine months ended
                           -------------------           ------------------
    (Dollars in
     thousands,
     except        September      June     September   September   September
     ratios)        30, 2009    30, 2009    30, 2008    30, 2009    30, 2008
    -----------    ----------   --------   ----------  ----------  ----------
    Allowance for
     loan losses,
     beginning
     balance         $110,473    $110,010     $52,888    $107,396     $47,293
    Provision for
     loan losses        8,030      21,393      13,682      72,889      29,756
    Gross loan
     charge-offs      (46,553)    (21,898)     (7,000)   (110,464)    (22,306)
    Loan
     recoveries        14,763         968         720      16,892       5,547
                       ------         ---         ---      ------       -----
    Allowance for
     loan losses,
     ending
     balance          $86,713    $110,473     $60,290     $86,713     $60,290
    -------------     =======    ========     =======     =======     =======
    Provision as
     a percentage
     of total
     gross loans
     (annualized)        0.68%       1.76%       1.02%       2.08%       0.75%
    Gross loan
     charge-offs
     as a
     percentage of
     average total
     gross loans
     (annualized)        4.03        1.82        0.57        3.04        0.67
    Net loan
     charge-offs
     as a
     percentage of
     average total
     gross loans
     (annualized)        2.75        1.74        0.51        2.58        0.50
    Allowance for
     loan losses
     as a
     percentage of
     total gross
     loans               1.85        2.26        1.13        1.85        1.13
    Total gross
     loans at
     period-end    $4,692,498  $4,886,040  $5,323,323  $4,692,498  $5,323,323
    Average total
     gross loans    4,583,320   4,820,855   4,897,996   4,852,543   4,464,716

Our provision for loan losses was $8.0 million for the third quarter of 2009, a decrease of $13.4 million from the second quarter of 2009. Our provision for loan losses of $8.0 million for the third quarter of 2009 is detailed as follows:

    --  Gross loan charge-offs of $46.6 million, primarily from our software,
        venture capital/private equity and hardware client portfolios. Gross
        loan charge-offs included $27.4 million of loans that were previously
        included as nonperforming loans, with specific reserves of $34.9
        million. These charge-offs were the primary driver for the $39.3 million
        decrease in our nonperforming loans from the second to the third quarter
        of 2009.
    --  Loan recoveries of $14.8 million, primarily due to a partial recovery of
        $11.4 million from a loan within our hardware industry portfolio that
        was charged-off in the first quarter of 2009. The remaining recoveries
        of $3.4 million were primarily from our life sciences and software
        client portfolios.

    --  Our net loan charge-offs of $31.8 million, as a percentage of average
        total gross loans (annualized) was 2.75 percent for the third quarter of
        2009, compared to our allowance for loan losses as a percentage of total
        gross loans (annualized) of 1.85 percent for the third quarter of 2009.
        Net loan charge-offs of 2.75 percent for the third quarter of 2009
        included the finalization of the HRJ transaction and the charge-offs of
        certain other impaired loans.

As shown in the table below, we believe our allowance for loan losses of 1.85 percent is indicative of ongoing levels of future charge-offs.


                                                   Period end balances at
                                                   ----------------------
                                             September    June    September
    (Dollars in thousands, except ratios)    30, 2009   30, 2009   30, 2008
    -------------------------------------     -------   --------   --------
    Allowance for loan losses as a
     percentage of total gross loans           1.85%      2.26%      1.13%
    Allowance for loan losses for
     performing loans as a percentage of
     performing loans                          1.37       1.38       1.02
    Allowance for loan losses for
     nonperforming loans as a percentage
     of nonperforming loans                   32.36      40.05      63.31
    Allowance for loan losses               $86,713   $110,473    $60,290
    Allowance for loan losses for
     performing loans                        63,357     65,829     54,347
    Allowance for loan losses for
     nonperforming loans                     23,356     44,644      5,943
    Total performing loans                4,620,325  4,774,579  5,313,936
    Total nonperforming loans                72,173    111,461      9,387

In July 2009, an independent asset management firm announced that it had closed its transaction with HRJ to assume the management of HRJ's private equity and real estate funds of funds. The finalization of this transaction in the third quarter of 2009 had a favorable impact on our overall allowance for loan losses.

Noncontrolling Interests

Net income attributable to noncontrolling interests was $2.2 million for the third quarter of 2009, compared to a net loss of $9.0 million for the second quarter of 2009 and a net loss of $1.7 million for the third quarter of 2008. Net income attributable to noncontrolling interests of $2.2 million for the third quarter of 2009 was primarily a result of the following:

    --  Gains on investment securities (including carried interest) attributable
        to noncontrolling interests of $4.9 million, stemming mainly from gains
        of $2.5 million from our managed funds of funds and $2.3 million from
        our managed co-investment funds.

    --  Noninterest expense of $2.9 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 was reduced by $3.6 million and $3.5 million for the third and second quarters of 2009, respectively, related to dividends and discount amortization in connection with our preferred stock issued under the Capital Purchase Program ("CPP") on December 12, 2008.

Accumulated other comprehensive income increased by $21.0 million to $25.5 million as of September 30, 2009, compared to $4.5 million as of June 30, 2009, primarily due to favorable increases in the fair value of our fixed income investment portfolio due to declining long-term interest rates and improvements in market liquidity.

Additional paid-in-capital increased by $5.9 million to $92.4 million as of September 30, 2009, compared to $86.5 as of June 30, 2009, primarily due to stock option exercises and share-based compensation expenses in the third quarter of 2009.

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, except for net loan charge-offs which is specific to the fourth quarter of 2009, 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 (losses) gains on equity warrant assets and net (losses) gains on investment securities, net of noncontrolling interests. 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:



                                ---------------------------------------------
                                 Current outlook compared to 2008 results as
                                              of October 22, 2009
    --------------------------------------------------------------------------
                                   Increase at a percentage rate in the low
    Average loan balances                        single digits
    --------------------------------------------------------------------------
                                     Increase at a percentage rate in the
    Average deposit balances                       seventies
    --------------------------------------------------------------------------
    Net interest margin                      Between 3.7% to 4.0%
    --------------------------------------------------------------------------
    Allowance for loan losses      Approximately 1.85% of total gross loans
     as a percentage of gross      including existing specific reserves for
     loans                                      impaired loans
    --------------------------------------------------------------------------
                                    For the fourth quarter of 2009, net loan
                                   charge-offs are expected to be in the range
                                   of 1.40% to 1.45% of average total gross
                                      loans, excluding any potential net
    Net loan charge-offs             charge-offs related to impaired loans
    --------------------------------------------------------------------------
    Ratio of non-performing
     loans and assets                   Lower compared to 2008 levels
    --------------------------------------------------------------------------
    Fees for deposit services,
     letters of credit and
     foreign exchange, in          Decrease at a percentage rate in the low
     aggregate                                   single digits
    --------------------------------------------------------------------------
                                 Decline significantly to approximately one-
    Client investment fees                    half of 2008 levels
    --------------------------------------------------------------------------
    Net (losses) gains on
     equity warrant assets                  No net gains expected
    --------------------------------------------------------------------------
    Net (losses) gains on
     investment securities, net
     of noncontrolling
     interests*                           Comparable to 2008 levels
    --------------------------------------------------------------------------
    Noninterest expense*
     (excluding expenses
     related to goodwill
     impairment and               Increase at a percentage rate in the low
     noncontrolling interests)                double digits range
    --------------------------------------------------------------------------






                                    Change in outlook compared to outlook
                                         reported as of July 23, 2009
    --------------------------------------------------------------------------
                                  Outlook decreased from mid single digits,
    Average loan balances              due to overall market conditions
    --------------------------------------------------------------------------
                                 Outlook increased from previous outlook from
                                      the sixties, due to overall market
    Average deposit balances                      conditions
    --------------------------------------------------------------------------
    Net interest margin                No change from previous outlook
    --------------------------------------------------------------------------
    Allowance for loan losses    Outlook improved due to resolution of certain
     as a percentage of gross       impaired loans and general improvement
     loans                            in overall credit quality portfolio
    --------------------------------------------------------------------------
    Net loan charge-offs               No change from previous outlook
    --------------------------------------------------------------------------
    Ratio of non-performing         Outlook improved due to resolution of
     loans and assets                       certain impaired loans
    --------------------------------------------------------------------------
    Fees for deposit services,
     letters of credit and
     foreign exchange, in
     aggregate                         No change from previous outlook
    --------------------------------------------------------------------------
    Client investment fees             No change from previous outlook
    --------------------------------------------------------------------------
    Net (losses) gains on
     equity warrant assets             No change from previous outlook
    --------------------------------------------------------------------------
    Net (losses) gains on
     investment securities, net
     of noncontrolling              Outlook improved due to overall market
     interests*                                   conditions
    --------------------------------------------------------------------------
    Noninterest expense*
     (excluding expenses
     related to goodwill
     impairment and                Outlook improved from mid teens, due to
     noncontrolling interests)        lower compensation and benefits
    --------------------------------------------------------------------------

    --------------------------
    *  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 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) deterioration, weaker than expected improvement, 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, and (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. 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 October 22, 2009, we will host a conference call at 3:00 p.m. (Pacific Time) to discuss the financial results for the third quarter ended September 30, 2009. The conference call can be accessed by dialing (877) 663-9523 or (404) 665-9482, and referencing the conference ID "35591747". 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, October 22, 2009, through midnight on Tuesday, October 27 2009, by dialing (800) 642-1687 or (706) 645-9291 and referencing conference ID number "35591747". A replay of the audio webcast will also be available on www.svb.com for 12 months beginning Thursday, October 22, 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)

    (Dollars in            Three months ended             Nine months ended
     thousands,          ---------------------           -------------------
     except share   September    June       September    September   September
     data)          30, 2009    30, 2009    30, 2008*    30, 2009    30, 2008*
    -------------   -------     -------     -------     -------     -------
    Interest income:
       Loans         $83,049     $84,248     $94,256    $255,548    $268,530
       Investment
        securities:
         Taxable      21,562      16,794      15,321      53,207      43,677
         Non-taxable   1,008       1,029       1,106       3,098       3,121
       Federal funds
        sold, securities
        purchased under
        agreements to
        resell and other
        short-term
        investment
        securities     2,367       2,485       2,712       7,228      10,513
    ---------------    -----       -----       -----       -----      ------
    Total interest
     income          107,986     104,556     113,395     319,081     325,841
    --------------   -------     -------     -------     -------     -------
    Interest expense:
      Deposits         4,801       5,605       6,267      17,253      16,908
      Borrowings (1)   6,367       7,270      12,517      21,818      36,748
      --------------   -----       -----      ------      ------      ------
    Total interest
     expense          11,168      12,875      18,784      39,071      53,656
    --------------    ------      ------      ------      ------      ------
    Net interest
     income           96,818      91,681      94,611     280,010     272,185
    Provision for
     loan losses       8,030      21,393      13,682      72,889      29,756
    -------------      -----      ------      ------      ------      ------
    Net interest
     income after
     provision for
     loan losses      88,788      70,288      80,929     207,121     242,429
    --------------    ------      ------      ------     -------     -------
    Noninterest income:
      Foreign
       exchange fees   7,491       7,617       8,641      22,574      24,446
      Deposit
       service
       charges         6,906       6,590       6,129      20,319      18,076
      Client
       investment
       fees            5,527       5,580      13,636      17,355      41,006
      Letters of
       credit and
       standby
       letters of
       credit income   3,019       2,329       3,050       8,240       9,138
      Credit card
       fees            2,300       2,957       1,473       6,696       4,675
      Corporate
       finance fees        -           -           -           -       3,640
      (Losses) gains
       on derivative
       instruments,
       net            (1,090)     (2,847)      6,472      (2,123)     13,479
      Gains (losses)
       on investment
       securities,
       net             3,905      (6,750)       (876)    (37,890)     (4,949)
      Other            6,249      12,799       1,913      21,830      17,194
      -----            -----      ------       -----      ------      ------
    Total
     noninterest
     income           34,307      28,275      40,438      57,001     126,705
    ------------      ------      ------      ------      ------     -------
    Noninterest expense:
      Compensation
       and benefits   45,815      46,947      49,598     141,042     153,438
      Professional
       services       12,109      11,263       9,623      35,452      27,556
      Premises and
       equipment       5,892       5,694       5,781      16,993      16,424
      FDIC
       assessments     2,589       8,589         671      13,853       1,807
      Net occupancy    4,198       4,843       4,135      13,346      12,825
      Business
       development
       and travel      2,902       3,403       3,389       9,578      10,575
      Correspondent
       bank fees       2,118       1,963       1,689       5,994       5,011
      Impairment of
       goodwill            -           -           -       4,092           -
      Loss from cash
       settlement of
       conversion
       premium of zero-
       coupon convertible
       subordinated
       notes               -           -           -           -       3,858
      Provision for
       (reduction of)
       unfunded
       credit
       commitments        65      (1,147)       (990)     (3,366)       (355)
      Other            4,119       7,457       6,535      18,975      19,918
      -----            -----       -----       -----      ------      ------
    Total
     noninterest
     expense          79,807      89,012      80,431     255,959     251,057
    ------------      ------      ------      ------     -------     -------
    Income before
     income tax
     expense
                      43,288       9,551      40,936       8,163     118,077
    Income tax
     expense (1)      16,879       7,174      16,711      21,605      51,350
    ------------      ------       -----      ------      ------      ------
    Net income
     (loss) before
     noncontrolling
     interests        26,409       2,377      24,225     (13,442)     66,727
    Net (income)
     loss
     attributable to
     noncontrolling
     interests (2)    (2,246)      8,961       1,693      40,708       7,445
    ----------------  ------       -----       -----      ------       -----
    Net income
     attributable to
     SVBFG (1)(2)    $24,163     $11,338     $25,918     $27,266     $74,172
    ================ =======     =======     =======     =======     =======
    Preferred stock
     dividend and
     discount
     accretion        (3,555)     (3,545)          -     (10,636)          -
    ---------------   ------      ------         ---     -------         ---
    Net income
     available to
     common
     stockholders(1) $20,608      $7,793     $25,918     $16,630     $74,172
    ================ =======      ======     =======     =======     =======
    Earnings per
     common share -
     basic (1)         $0.62       $0.24       $0.80       $0.50       $2.30
    Earnings per
     common share -
     diluted (1)       $0.61       $0.24       $0.77       $0.50       $2.17
    Weighted average
     common shares
     outstanding -
     basic        33,176,678  32,951,905  32,534,613  33,033,179  32,295,612
    Weighted average
     common shares
     outstanding -
     diluted      33,672,491  33,078,367  33,778,095  33,247,740  34,255,320
    --------------

    *    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 and nine
         months ended September 30, 2008 have been revised.
    (1)  Balances for all periods presented reflect our adoption of ASC 470-20
         (formerly known as FSP APB 14-1). Refer to "Long-Term Debt"
         discussion for more details. Amounts for the three and nine months
         ended September 30, 2008 have been retrospectively adjusted.
    (2)  Our 2009 adoption of new accounting standards (ASC 810-10-65,
         formerly known as SFAS No. 160) required 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      September      June      September
     value, share data and ratios)         30, 2009     30, 2009    30, 2008*
    ---------------------------------       -------      -------     -------
    Assets:
    Cash and due from banks               $4,062,298   $3,430,835    $459,517
    Federal funds sold, securities
     purchased under agreements to
     resell and other short-term
     investment securities                    48,530      278,535     290,996
    Investment securities                  3,491,281    2,638,380   1,779,978
    Loans, net of unearned income          4,655,817    4,844,253   5,285,101
    Allowance for loan losses                (86,713)    (110,473)    (60,290)
    -------------------------                -------     --------     -------
    Net loans                              4,569,104    4,733,780   5,224,811
    ---------                              ---------    ---------   ---------
    Premises and equipment, net of
     accumulated depreciation and
     amortization                             30,722       30,196      32,344
    Goodwill                                       -            -       4,092
    Accrued interest receivable and
     other assets                            336,668      354,161     278,577
    -------------------------------          -------      -------     -------
    Total assets (1)                     $12,538,603  $11,465,887  $8,070,315
    ================                     ===========  ===========  ==========

    Liabilities and total equity:
    Liabilities:
      Deposits:
        Noninterest-bearing demand        $6,422,937   $5,551,226  $3,231,281
        Negotiable order of withdrawal
         (NOW)                                39,818       31,719      57,231
        Money market                       1,198,611    1,178,716   1,334,393
        Money market deposits in
         foreign offices                      64,701       29,832           -
        Time                                 333,870      356,781     387,236
        Sweep                              1,995,695    1,846,309     422,468
        -----                              ---------    ---------     -------
      Total deposits                      10,055,632    8,994,583   5,432,609
      --------------                      ----------    ---------   ---------
      Short-term borrowings                   52,285       31,340     425,000
      Other liabilities                      171,166      205,113     175,740
      Long-term debt (1)                     866,748      909,641     976,189
      ------------------                     -------      -------     -------
    Total liabilities                     11,145,831   10,140,677   7,009,538
    -----------------                     ----------   ----------   ---------

    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          223,009      222,391           -
      Common stock, $0.001 par value,
       150,000,000 shares authorized;
       33,202,387 shares, 33,142,568
       shares and 32,735,732 shares
       outstanding, respectively                  33           33          33
      Additional paid-in capital (1)          92,367       86,478      44,359
      Retained earnings (1)                  726,455      705,847     710,321
      Accumulated other comprehensive
       income (loss)                          25,513        4,470     (18,934)
      -------------------------------         ------        -----     -------
    Total SVBFG stockholders' equity (2)   1,067,377    1,019,219     735,779
    Noncontrolling interests (2)             325,395      305,991     324,998
    ----------------------------             -------      -------     -------
    Total equity (2)                       1,392,772    1,325,210   1,060,777
    ----------------                       ---------    ---------   ---------
    Total liabilities and total equity   $12,538,603  $11,465,887  $8,070,315
    ==================================   ===========  ===========  ==========

    Capital Ratios:
    Total risk-based capital ratio             19.24%       18.46%      14.25%
    Tier 1 risk-based capital ratio            14.60        13.89        9.94
    Tier 1 leverage ratio                       9.71         9.88       10.80
    Tangible common equity to tangible
     assets ratio (3)                           6.73         6.94        9.06
    Tangible common equity to risk-
     weighted assets ratio                     11.44        10.54        9.28

    Other Period-End Statistics:
    Loans, net of unearned income-to-
     deposits ratio                            46.30%       53.86%      97.28%
    Book value per common share (4)           $25.43       $24.04      $22.48
    Full-time equivalent employees             1,259        1,260       1,237
    ---------------------------------

    *    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
         September 30, 2008 have been revised.
    (1)  Balances for all periods presented reflect our adoption of ASC
         470-20 (formerly known as FSP APB 14-1). Refer to "Long-Term Debt"
         discussion for more details.  Balances as of September 30, 2008 have
         been retrospectively adjusted.
    (2)  Our 2009 adoption of  new accounting standards (ASC 810-10-65,
         formerly known as SFAS No. 160) required us to reclassify our balance
         sheet presentation for noncontrolling interests.
    (3)  Tangible common equity consists of 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
                                                      ------------------
                                                      September 30, 2009
                                                      ------------------
                                                             Interest
                                                  Average     Income/  Yield/
    (Dollars in thousands)                        Balance     Expense   Rate
    ----------------------                        -------     -------   ----
    Interest-earning assets:
    ------------------------
    Federal funds sold, securities purchased
     under agreements to resell and other short-
     term investment securities (1)              $3,370,898    $2,367    0.28%
    Investment securities: (2)
      Taxable                                     2,412,432    21,562    3.55
      Non-taxable (3)                               102,142     1,550    6.02
    Total loans, net of unearned income (4)       4,544,510    83,049    7.25
    ---------------------------------------       ---------    ------    ----
    Total interest-earning assets                10,429,982   108,528    4.12
    -----------------------------                ----------   -------    ----
    Cash and due from banks                         205,084
    Allowance for loan losses                      (114,364)
    Goodwill                                              -
    Other assets (5)                                889,924
    ----------------                                -------
    Total assets (6)                            $11,410,626
    ================                            ===========

    Funding sources:
    ----------------
    Interest-bearing liabilities:
      NOW deposits                                  $35,092       $34    0.38%
      Regular money market deposits                 122,809       145    0.47
      Bonus money market deposits                 1,035,822     1,208    0.46
      Money market deposits in foreign offices       68,589        90    0.52
      Time deposits                                 346,714       568    0.65
      Sweep deposits                              1,927,910     2,756    0.57
      --------------                              ---------     -----    ----
    Total interest-bearing deposits               3,536,936     4,801    0.54
    Short-term borrowings                            42,134        16    0.15
    3.875% convertible senior notes (6)             246,065     3,512    5.66
    Junior subordinated debentures                   55,956       893    6.33
    Senior and subordinated notes                   552,171     1,767    1.27
    Other long-term debt                             58,033       179    1.22
    --------------------                             ------       ---    ----
    Total interest-bearing liabilities            4,491,295    11,168    0.99
    Portion of noninterest-bearing funding
     sources                                      5,938,687
    ---------------------------------------       ---------    ------    ----
    Total funding sources                        10,429,982    11,168    0.42
    ---------------------                        ----------    ------    ----

    Noninterest-bearing funding sources:
    ------------------------------------
    Demand deposits                               5,373,486
    Other liabilities                               183,781
    SVBFG stockholders' equity (6)                1,045,340
    Noncontrolling interests (7)                    316,724
    Portion used to fund interest-earning
     assets                                      (5,938,687)
    --------------------------------------       ----------
    Total liabilities and total equity          $11,410,626
    ==================================          ===========   =======    ====
    Net interest income and margin (6)                        $97,360    3.70%
                                                              =======    ====
    Total deposits                               $8,910,422
                                                 ==========
    Average SVBFG stockholders' equity as a
     percentage of average assets                                        9.16%
                                                                         ====
    Reconciliation to reported net interest income:
    -----------------------------------------------
    Adjustments for taxable equivalent basis                     (542)
                                                                 ----
    Net interest income, as reported                          $96,818
                                                              =======




                                         Three months ended
                                         ------------------
                            June 30, 2009               September 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)  $3,369,317   $2,485   0.30%   $383,009   $2,712    2.82%
    Investment
     securities:(2)
      Taxable        1,729,648   16,794   3.89   1,288,039   15,321    4.73
      Non-taxable
       (3)             103,017    1,583   6.16     108,115    1,701    6.26
    Total loans,
     net of
     unearned
     income (4)      4,779,966   84,248   7.07   4,863,706   94,256    7.71
    ------------     ---------   ------   ----   ---------   ------    ----
    Total interest-
     earning assets  9,981,948  105,110   4.23   6,642,869  113,990    6.82
    ---------------  ---------  -------   ----   ---------  -------    ----
    Cash and due
     from banks        198,361                     241,536
    Allowance for
     loan losses      (112,647)                    (55,998)
    Goodwill                 -                       4,092
    Other assets(5)    860,304                     715,326
    ------------       -------                     -------
    Total assets
    (6)            $10,927,966                  $7,547,825
    ============   ===========                  ==========

    Funding sources:
    ----------------
    Interest-bearing
     liabilities:
      NOW deposits     $40,775      $37   0.36%    $42,538      $53    0.50%
      Regular
       money market
       deposits        152,894      175   0.46     139,210      530    1.51
      Bonus money
       market
       deposits        908,884    1,300   0.57   1,027,018    3,089    1.20
      Money market
       deposits in
       foreign
       offices          49,181       78   0.64           -        -       -
      Time deposits    368,856      621   0.68     395,970      898    0.90
      Sweep
       deposits      1,779,158    3,394   0.77     389,231    1,697    1.73
      ---------      ---------    -----   ----     -------    -----    ----
    Total interest-
     bearing
     deposits        3,299,748    5,605   0.68   1,993,967    6,267    1.25
    Short-term
     borrowings         45,846       20   0.17     544,301    3,042    2.22
    3.875%
     convertible
     senior notes
     (6)               245,522    3,506   5.73     243,976    3,490    5.69
    Junior
     subordinated
     debentures         55,938      893   6.40      52,502      514    3.89
    Senior and
     subordinated
     notes             562,990    2,575   1.83     522,302    4,381    3.34
    Other long-
     term debt          80,945      276   1.37     151,998    1,090    2.85
    -----------         ------      ---    ----    -------    -----    ----
    Total interest-
     bearing
     liabilities     4,290,989   12,875   1.20   3,509,046   18,784    2.13
    Portion of
     noninterest-
     bearing
     funding
     sources         5,690,959                   3,133,823
    -------------    ---------   ------   ----   ---------   ------    ----
    Total funding
     sources         9,981,948   12,875   0.52   6,642,869   18,784    1.12
    -------------    ---------   ------   ----   ---------   ------    ----

    Noninterest-bearing
     funding sources:
    -------------------
    Demand deposits  5,132,849                   2,826,289
    Other
     liabilities       181,421                     194,426
    SVBFG
     stockholders'
     equity (6)      1,014,192                     717,759
    Noncontrolling
     interests (7)     308,515                     300,305
    Portion used
     to fund
     interest-
     earning assets (5,690,959)                 (3,133,823)
    ---------------  ----------                 ----------
    Total
     liabilities
     and total
     equity        $10,927,966                  $7,547,825
    ============   ===========  =======   ====  ==========  =======    ====
    Net interest
     income and
     margin(6)                  $92,235   3.71%             $95,206    5.70%
                                =======   ====              =======    ====
    Total deposits  $8,432,597                  $4,820,256
                    ==========                  ==========
    Average SVBFG
     stockholders'
     equity as
     a percentage
     of average assets                    9.28%                        9.51%
                                          ====                         ====
    Reconciliation to
     reported net
     interest income:
    -----------------
    Adjustments for taxable
     equivalent basis              (554)                       (595)
                                   ----                        ----
    Net interest income, as
     reported                   $91,681                     $94,611
                                =======                     =======
    -----------------------

    *    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
         September 30, 2008 have been revised.
    (1)  Includes average interest-bearing deposits in other financial
         institutions of $182.7 million, $174.2 million and $90.0 million for
         the quarters ended September 30, 2009, June 30, 2009, and September
         30, 2008, respectively. For each of the quarters ended September 30,
         2009 and June 30, 2009, balance also includes $3.1 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 $505.3 million, $470.4 million and
         $388.2 million for the quarters ended September 30, 2009, June 30,
         2009, and September 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 ASC
         470-20 (formerly known as FSP APB 14-1). Refer to "Long-Term Debt"
         discussion for more details. Amounts for the quarter ended September
         30, 2008 have been retrospectively adjusted.
    (7)  Our 2009 adoption of new accounting standards (ASC 810-10-65,
         formerly known as SFAS No. 160) required us to reclassify our
         presentation of noncontrolling interests.


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

                                         Nine months ended
                                         -----------------
                          September 30, 2009           September 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)  $3,190,730   $7,228   0.30%   $484,892   $10,513    2.90%
    Investment
     securities:(2)
      Taxable         1,837,141   53,207   3.87   1,231,948    43,677    4.74
      Non-
       taxable(3)       103,839    4,766   6.14     100,184     4,801    6.40
    Total loans,
     net of
     unearned
     income(4)        4,811,481  255,548   7.10   4,433,731   268,530    8.09
    ------------      ---------  -------   ----   ---------   -------    ----
    Total interest-
     earning assets   9,943,191  320,749   4.31   6,250,755   327,521    7.00
    ---------------   ---------  -------   ----   ---------   -------    ----
    Cash and due
     from banks         241,150                     254,856
    Allowance for
     loan losses       (112,857)                    (52,363)
    Goodwill              1,334                       4,092
    Other
     assets(5)          862,354                     696,373
    ----------          -------                     -------
    Total
     assets(6)      $10,935,172                  $7,153,713
    ==========      ===========                  ==========

    Funding sources:
    ----------------
    Interest-bearing liabilities:
      NOW deposits      $42,653     $120   0.38%    $43,888      $161    0.49%
      Regular
       money market
       deposits         151,394      625   0.55     142,787     1,487    1.39
      Bonus money
       market
       deposits         977,096    4,246   0.58     934,253     8,791    1.26
      Money market
       deposits in
       foreign
       offices           60,767      342   0.75           -         -       -
      Time deposits     364,024    1,919   0.70     375,914     2,584    0.92
      Sweep
       deposits       1,780,912   10,001   0.75     285,681     3,885    1.82
      ---------       ---------   ------   ----     -------     -----    ----
    Total interest-
     bearing
     deposits         3,376,846   17,253   0.68   1,782,523    16,908    1.27
    Short-term
     borrowings          44,990       57   0.17     329,198     5,957    2.42
    Zero-coupon
     convertible
     subordinated
     notes(6)                 -        -      -      93,475     2,418    3.46
    3.875%
     convertible
     senior
     notes(6)           245,463   10,523   5.73     156,822     6,639    5.65
    Junior
     subordinated
     debentures          55,939    2,572   6.15      52,853     1,779    4.50
    Senior and
     subordinated
     notes              561,064    7,749   1.85     528,565    16,109    4.07
    Other long-
     term debt           79,924      917   1.53     152,339     3,846    3.37
    -----------          ------      ---   ----     -------     -----    ----
    Total interest-
     bearing
     liabilities      4,364,226   39,071   1.20   3,095,775    53,656    2.32
    Portion of
     noninterest-
     bearing
     funding
     sources          5,578,965                   3,154,980
    -------------     ---------   ------   ----   ---------    ------    ----
    Total funding
     sources          9,943,191   39,071   0.52   6,250,755    53,656    1.15
    -------------     ---------   ------   ----   ---------    ------    ----

    Noninterest-bearing
     funding sources:
    -------------------
    Demand deposits   5,050,329                   2,852,851
    Other
     liabilities        183,334                     227,628
    Discount on
     zero-coupon
     convertible
     subordinated
     notes (6)                -                         671
    SVBFG
     stockholders'
     equity(6)        1,022,701                     695,301
    Noncontrolling
     interests(7)       314,582                     281,487
    Portion used
     to fund
     interest-
     earning assets  (5,578,965)                 (3,154,980)
    ---------------  ----------                  ----------
    Total
     liabilities
     and total
     equity         $10,935,172                  $7,153,713
    ============    =========== ========   ====  ==========  ========    ====
    Net interest
     income and
     margin(6)                  $281,678   3.79%             $273,865    5.85%
                                ========   ====              ========    ====
    Total deposits   $8,427,175                  $4,635,374
                     ==========                  ==========
    Average SVBFG
     stockholders' equity
     as a percentage
     of average assets                      9.35%                        9.72%
                                            ====                         ====
    Reconciliation to
     reported net
     interest income:
    -----------------
    Adjustments for taxable
     equivalent basis             (1,668)                      (1,680)
                                  ------                       ------
    Net interest income, as
     reported                   $280,010                     $272,185
                                ========                     ========
    -----------------------

    *    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 nine months ended
         September 30, 2008 have been revised.
    (1)  Includes average interest-bearing deposits in other financial
         institutions of $179.0 million and $90.7 million for the nine months
         ended September 30, 2009 and 2008, respectively. For the nine months
         ended September 30, 2009, balance also includes $2.9 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 $481.1 million and $369.0 million
         for the nine months ended September 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 ASC
         470-20 (formerly known as FSP APB 14-1). Refer to "Long-Term Debt"
         discussion for more details. Amounts for the nine months ended
         September 30, 2008 have been retrospectively adjusted.
    (7)  Our 2009 adoption of new accounting standards (ASC 810-10-65,
         formerly known as SFAS No. 160) required us to reclassify our
         presentation of noncontrolling interests.



    (Losses) Gains on Derivative Instruments, Net


                                         Three months ended
                                         ------------------
                                                              % Change
                                                              --------
    (Dollars in            September   June   September   June     September
     thousands)            30, 2009  30, 2009  30, 2008  30, 2009    30, 2008
    -----------            -------  -------    -------  -------     -------
    Gains (losses) on foreign
     exchange forward
     contracts, net:
      Gains on client
       foreign exchange
       forward
       contracts, net
       (1)                    $360     $448       $561    (19.6)%     (35.8)%
      (Losses) gains
       on internal
       foreign exchange
       forward
       contracts, net
       (2)                    (128)  (4,479)     4,452    (97.1)     (102.9)
                              ----   ------      -----    -----      ------
    Total gains
     (losses) on
     foreign exchange
     forward contracts,
     net                       232   (4,031)     5,013   (105.8)      (95.4)

    Change in fair
     value of interest
     rate swap (3)               -        -        (10)       -      (100.0)
    Gains on covered
     call options, net
     (4)                         -        -         24        -      (100.0)

    Equity warrant assets:
      (Losses) gains
       on exercise, net
                              (506)     (42)     1,130     NM        (144.8)
      Change in fair value (5):
        Cancellations
         and
         expirations        (1,170)  (1,276)      (950)    (8.3)       23.2
        Other changes
         in fair value         354    2,502      1,265    (85.9)      (72.0)
                               ---    -----      -----    -----       -----
    Total net (losses)
     gains on equity
     warrant assets (6)     (1,322)   1,184      1,445     NM        (191.5)
                            ------    -----      -----   ------      ------

    Total (losses)
     gains on
     derivative
     instruments, net      $(1,090) $(2,847)    $6,472    (61.7)%    (116.8)%
                           =======  =======     ======    =====      ======




                                                    Nine months ended
                                                    -----------------
                                               September  September     %
    (Dollars in thousands)                      30, 2009   30, 2008  Change
    ----------------------                       ------     ------   ------
    Gains (losses) on foreign exchange
     forward contracts, net:
      Gains on client foreign exchange
       forward contracts, net (1)                $1,304     $1,767   (26.2)%
      (Losses) gains on internal foreign
       exchange forward contracts, net (2)       (2,664)     1,985    NM
                                                 ------      -----  ------
    Total gains (losses) on foreign exchange
     forward contracts, net                      (1,360)     3,752  (136.2)

    Change in fair value of interest rate
     swap (3)                                      (170)       376  (145.2)
    Gains on covered call options, net (4)            -        402  (100.0)

    Equity warrant assets:
      (Losses) gains on exercise, net              (338)     6,321  (105.3)
      Change in fair value (5):
        Cancellations and expirations            (3,644)    (1,895)   92.3
        Other changes in fair value               3,389      4,523   (25.1)
                                                  -----      -----   -----
    Total net (losses) gains on equity
     warrant assets (6)                            (593)     8,949  (106.6)
                                                   ----      -----  ------

    Total (losses) gains on derivative
     instruments, net                           $(2,123)   $13,479  (115.8)%
                                                =======    =======  ======
    ---------------------------------

    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 September 30, 2009, we held warrants in 1,250 companies, compared
         to 1,285 companies at June 30, 2009 and 1,258 companies at September
         30, 2008.
    (6)  Includes net (losses) gains 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 (Income) Loss
         Attributable to Noncontrolling Interests".


    Net (Income) Loss Attributable to Noncontrolling Interests (1)

                               Three months ended          Nine months ended
                               ------------------          -----------------
    (Dollars in         September     June    September  September  September
     thousands)          30, 2009   30, 2009   30, 2008   30, 2009   30, 2008
    -----------         ---------  ---------  ---------  ---------  ---------
    Net interest
     (income) loss(2)         $(1)       $16      $(129)       $29      $(492)
    Noninterest
     (income) loss(2)      (5,114)     6,153     (1,393)    32,946     (1,946)
    Noninterest
     expense(2)             2,872      2,848      2,864      9,107      8,080
    Carried interest(3)        (3)       (56)       351     (1,374)     1,803
                               --        ---        ---     ------      -----
    Net (income) loss
     attributable to
     noncontrolling
     interests            $(2,246)    $8,961     $1,693    $40,708     $7,445
                          =======     ======     ======    =======     ======
    -------------------

    (1)  Our 2009 adoption of new accounting standards (ASC 810-10-65,
         formerly known as SFAS No. 160) required us to reclassify our
         presentation of noncontrolling interests.
    (2)  Represents noncontrolling interests share in net interest income,
         noninterest income, 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       Nine months ended
                                   ------------------       -----------------
                              September   June   September September September
    (Shares in thousands)     30, 2009  30, 2009  30, 2008  30, 2009  30, 2008
    ---------------------      -------   -------   -------   -------   -------
    Weighted average common
     shares outstanding-basic   33,177    32,952    32,535    33,033    32,296
    Effect of dilutive
     securities:
      Stock options                495       126       994       215       998
      Restricted stock awards
       and units                     -         -       106         -        93
      Zero-coupon convertible
       subordinated notes(1)         -         -         -         -       868
      Warrants associated with
       zero-coupon convertible
       subordinated notes(1)         -         -         -         -         -
      3.875% convertible
       senior notes(2)               -         -       143         -         -
      Warrants associated with
       3.875% convertible
       senior notes(2)               -         -         -         -         -
      Warrant associated with
       Capital Purchase
       Program(3)                    -         -         -         -         -
                                   ---       ---       ---       ---       ---
    Total effect of dilutive
     securities                    495       126     1,243       215     1,959
                                   ---       ---     -----       ---     -----
    Weighted average common
     shares outstanding-
     diluted                    33,672    33,078    33,778    33,248    34,255
                                ======    ======    ======    ======    ======
    -------------------------

    (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.


    Credit Quality

                                                  Period end balances at
                                                  ----------------------
                                             September      June    September
    (Dollars in thousands)                    30, 2009    30, 2009   30, 2008
    ----------------------                     -------     -------    -------
    Nonperforming loans and assets:
    Nonperforming loans:
      Loans past due 90 days or more still
       accruing interest                             $-        $55       $247
      Nonaccrual loans                           72,173    111,406      9,140
                                                 ------    -------      -----
    Total nonperforming loans                    72,173    111,461      9,387
    Other real estate owned                         440        450      1,385
                                                    ---        ---      -----
    Total nonperforming assets                  $72,613   $111,911    $10,772
                                                =======   ========    =======

    Nonperforming loans as a percentage of
     total gross loans                             1.54%      2.28%      0.18%
    Nonperforming assets as a percentage of
     total assets                                  0.58       0.98       0.13

    Allowance for loan losses                   $86,713   $110,473    $60,290
      As a percentage of total gross loans         1.85%      2.26%      1.13%
      As a percentage of nonperforming loans     120.15      99.11     642.27
    Allowance for loan losses for
     nonperforming loans                        $23,356    $44,644     $5,943
      As a percentage of total gross loans         0.50%      0.91%      0.11%
    Allowance for loan losses for
     performing loans                           $63,357    $65,829    $54,347
      As a percentage of total gross loans         1.35%      1.35%      1.02%
    Reserve for unfunded credit commitments
     (1)                                        $11,332    $11,266    $13,091
    Total gross loans                         4,692,498  4,886,040  5,323,323
    Total unfunded credit commitments         4,794,463  4,963,654  5,619,021
    ---------------------------------------

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


    Average Client Investment Funds (1)

                                  Three months ended        Nine months ended
                                  -------------------       ------------------
                             September    June   September September September
    (Dollars in millions)     30, 2009  30, 2009  30, 2008  30, 2009  30, 2008
    ---------------------    --------- --------- --------- --------- ---------
    Client directed
     investment assets         $10,644   $11,039   $12,948   $11,109   $12,819
    Client investment
     assets under management     5,477     5,412     6,406     5,574     6,262
    Sweep money market funds         -         -     2,682        75     2,692
                                   ---       ---     -----       ---     -----
    Total average client
     investment funds          $16,121   $16,451   $22,036   $16,758   $21,773
                               =======   =======   =======   =======   =======
    -----------------------

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

Average client investment funds decreased by $329.0 million to $16.1 billion for the third quarter of 2009, compared to $16.5 billion for the second 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 other options available in the current low interest rate environment.

Period-end total client investment funds were $16.4 billion at September 30, 2009, compared to $16.0 billion at June 30, 2009 and $21.5 billion at September 30, 2008.

Changes to Prior Period Balances

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. The table below highlights certain revised prior period items related to this revision and to the adoption of ASC 470-20 (formerly known as FSP APB 14-1):



                                       Three months ended
                                     ----------------------
    (Dollars in
     thousands,
     except per
     share           March     December    September      June       March
     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 ASC 470-20
    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 ASC 470-20
    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, non-GAAP noninterest income, non-GAAP net (losses) gains 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 (Income) Loss
        Attributable to Noncontrolling Interests." Our net income 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
        subordinated 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 applicable bank regulatory requirements, 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
                                    (Unaudited)

    (Dollars in              Three months ended           Nine months ended
     thousands,              -------------------          ------------------
     except share      September     June    September   September  September
     amounts)           30, 2009   30, 2009  30, 2008 *   30, 2009  30, 2008 *
    -------------      ---------  --------- -----------  --------- -----------
    Net income
     available to
     common
     stockholders        $20,608     $7,793     $25,918    $16,630     $74,172
    Impairment of
     goodwill(1)               -          -           -      4,092           -
    Loss from cash
     settlement of
     conversion
     premium of zero-
     coupon
     convertible
     subordinated
     notes(2)                  -          -           -          -       3,858
                             ---        ---         ---        ---       -----
    Non-GAAP net
     income available
     to common
     stockholders        $20,608     $7,793     $25,918    $20,722     $78,030
                         =======     ======     =======    =======     =======
    Weighted average
     diluted common
     shares
     outstanding      33,672,491 33,078,367  33,778,095 33,247,740  34,255,320
    -----------------

    *    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 and
         nine months ended September 30, 2008 have been 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.




    Non-GAAP noninterest
     income, net of
     noncontrolling
     interests                  Three months ended         Nine months ended
    (Dollars in                 ------------------         -----------------
     thousands)           September    June    September  September September
                          30, 2009   30, 2009  30, 2008*  30, 2009  30, 2008*
    ---------------------    ------- -------    -------    -------    -------
    GAAP noninterest
     income                  $34,307 $28,275    $40,438    $57,001   $126,705
    Less: income
     (losses)
     attributable to
     noncontrolling
     interests, including
     carried interest          5,117  (6,097)     1,042    (31,572)       143
                               -----  ------      -----    -------        ---
    Non-GAAP noninterest
     income, net of
     noncontrolling
     interests               $29,190 $34,372    $39,396    $88,573   $126,562
                             ======= =======    =======    =======   ========
    ----------------------

    *    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 and
         nine months ended September 30, 2008 have been revised.



    Non-GAAP net
     (losses) gains on
     investment
     securities, net of         Three months ended         Nine months ended
     noncontrolling             ------------------         -----------------
     interests (Dollars   September    June    September  September  September
     in thousands)        30, 2009   30, 2009  30, 2008   30, 2009   30, 2008
    -------------------   -------    -------   -------    -------    -------
    GAAP net gains
     (losses) on
     investment
     securities             $3,905  $ (6,750)    $(876)   $(37,890)   $(4,949)
    Less: gains
     (losses) on
     investment
     securities
     attributable to
     noncontrolling
     interests,
     including carried
     interest                4,880    (6,933)    1,220     (32,491)      (227)
                             -----    ------     -----     -------       ----
    Non-GAAP net
     (losses) gains on
     investment
     securities, net of
     noncontrolling
     interests               $(975)     $183   $(2,096)    $(5,399)   $(4,722)
                             =====      ====   =======     =======    =======



    Non-GAAP operating
     efficiency ratio,
     net of
     noncontrolling
     interests
    (Dollars in                Three months ended          Nine months ended
     thousands, except         ------------------          -----------------
     ratios)             September     June    September  September  September
                          30, 2009   30, 2009   30, 2008   30, 2009   30, 2008
    -------------------    -------   -------    -------    -------    -------
    GAAP noninterest
     expense               $79,807   $89,012    $80,431   $255,959   $251,057
    Less: amounts
     attributable to
     noncontrolling
     interests               2,872     2,848      2,864      9,107      8,080
    Less: loss from
     cash settlement of
     conversion premium
     of zero-coupon
     convertible
     subordinated notes          -         -          -          -      3,858
    Less: impairment
     of goodwill                 -         -          -      4,092          -
                               ---       ---        ---      -----        ---
    Non-GAAP
     noninterest
     expense, net of
     noncontrolling
     interests             $76,935   $86,164    $77,567   $242,760   $239,119
                           =======   =======    =======   ========   ========

    GAAP taxable
     equivalent net
     interest income       $97,361   $92,235    $95,206   $281,678   $273,865
    Less: income
     (losses)
     attributable to
     noncontrolling
     interests                   1       (16)       129        (29)       492
                               ---       ---        ---        ---        ---
    Non-GAAP taxable
     equivalent net
     interest income,
     net of
     noncontrolling
     interests              97,360    92,251     95,077    281,707    273,373

    Non-GAAP
     noninterest
     income, net of
     noncontrolling
     interests              29,190    34,372     39,396     88,573    126,562
                            ------    ------     ------     ------    -------
    Non-GAAP taxable
     equivalent
     revenue, net of
     noncontrolling
     interests            $126,550  $126,623   $134,473   $370,280   $399,935
                          ========  ========   ========   ========   ========

    Non-GAAP operating
     efficiency ratio        60.79%    68.05%     57.68%     65.56%     59.79%
                             =====     =====      =====      =====      =====


    Non-GAAP non-marketable securities, net of
     noncontrolling interests
    (Dollars in thousands)                         September 30,    June 30,
                                                       2009           2009
    ------------------------------                     ----           ----
    GAAP non-marketable securities                  $507,880       $478,694
    Less: noncontrolling interests in non-
     marketable securities                           296,011        285,127
                                                     -------        -------
    Non-GAAP non-marketable securities, net of
     noncontrolling interests                       $211,869       $193,567
                                                    ========       ========


    Non-GAAP tangible common equity
     and tangible assets
    (Dollars in thousands, except
     ratios)                             September       June     September
                                          30, 2009      30, 2009   30, 2008*
    -------------------------------         -------      -------    -------
    GAAP SVBFG stockholders' equity      $1,067,377   $1,019,219    $735,779
    Less:
      Preferred stock                       223,009      222,391           -
      Goodwill                                    -            -       4,092
      Intangible assets                         697          774       1,213
                                                ---          ---       -----
    Tangible common equity                 $843,671     $796,054    $730,474
                                           ========     ========    ========

    GAAP Total assets                   $12,538,603  $11,465,887  $8,070,315
    Less:
      Goodwill                                    -            -       4,092
      Intangible assets                         697          774       1,213
                                                ---          ---       -----
    Tangible assets                     $12,537,906  $11,465,113  $8,065,010
                                        ===========  ===========  ==========

    Risk-weighted assets                 $7,376,398   $7,549,912  $7,867,334

    Tangible common equity to tangible
     assets                                    6.73%        6.94%       9.06%
    Tangible common equity to risk-
     weighted assets                          11.44        10.54        9.28
    -----------------------------------

    *    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 September 30,
         2008 have been revised.

SOURCE SVB Financial Group

http://www.svb.com

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