SVB Financial Group
Jan 21, 2010

SVB Financial Group Announces 2009 Fourth Quarter and Year-End Financial Results

SANTA CLARA, Calif., Jan. 21, 2010 /PRNewswire via COMTEX News Network/ -- SVB Financial Group (Nasdaq: SIVB) today announced financial results for the fourth quarter and year ended December 31, 2009.

Consolidated net income available to common stockholders for the fourth quarter of 2009 was $6.0 million, or $0.16 per diluted common share, compared to $20.6 million, or $0.61 per diluted common share, for the third quarter of 2009, and a net loss applicable to common stockholders of $0.6 million, or $0.02 per diluted common share, for the fourth quarter of 2008. Consolidated net income for the fourth quarter of 2009 included a non-cash charge of $11.4 million related to our redemption of preferred stock issued under the U.S. Treasury's TARP Capital Purchase Program ("CPP"). Excluding the $11.4 million charge, net income for the fourth quarter of 2009 was $17.5 million, or $0.47 per diluted common share. (See non-GAAP reconciliation under section "Use of Non-GAAP Financial Measures" provided below).

Highlights of our fourth quarter 2009 results included:

Consolidated net income available to common stockholders for the year ended December 31, 2009 was $22.7 million, or $0.66 per diluted common share, compared to $73.6 million, or $2.16 per diluted common share, for 2008. Consolidated net income for the year ended December 31, 2009 included a non-tax deductible charge of $11.4 million related to TARP repayment in the fourth quarter of 2009 and a non-tax deductible goodwill impairment charge of $4.1 million recorded in the first quarter of 2009. Excluding these charges, net income for the year ended December 31, 2009 was $38.2 million, or $1.12 per diluted common share. (See non-GAAP reconciliation under section "Use of Non-GAAP Financial Measures" provided below).

"We are pleased to see continued improvements across our business, including higher credit quality, stronger fee income and higher interest income," said Ken Wilcox, President and CEO of SVB Financial Group. "Our strong capital and liquidity position has allowed us to continue making the right decisions for our business and for shareholders throughout this recession. In the meantime, we remain poised to take advantage of increases in market activity or interest rates, when they eventually come."

Fourth Quarter 2009 Summary



                                              Three months ended
                                              ------------------

    (Dollars in millions,
     except share data and         December                       December
     ratios)                          31,      September 30,         31,
    ---------------------         ---------    -------------     ---------
                                        2009            2009           2008
                                        ----            ----           ----
    Income Statement:
    Diluted earnings (loss) per
     common share                      $0.16           $0.61         $(0.02)
    Net income attributable to
     SVBFG                              20.7            24.2            0.1
    Net income (loss) available
     to common stockholders              6.0            20.6           (0.6)
    Net interest income                102.1            96.8           96.4
    Provision for loan losses           17.3             8.0           71.0
    Noninterest income                  40.7            34.3           25.7
    Noninterest expense                 87.9            79.8           61.8
    Non-GAAP net income (loss)
     available to common
     stockholders (1)                   17.5            20.6           (0.6)
    Non-GAAP diluted earnings
     (loss) per common share
     (1)                                0.47            0.61          (0.02)
    Non-GAAP noninterest
     income, net of
     noncontrolling interests
     (1)                                34.1            29.2           34.3
    Non-GAAP noninterest
     expense, net of
     noncontrolling interests
     (1)                                84.6            76.9           58.8

    Fully Taxable Equivalent:
         Net interest income (2)      $102.7           $97.4          $97.0
         Net interest margin         3.57   %        3.70   %       5.39   %

    Shares Outstanding:
         Common                   41,338,569      33,202,387     32,917,007
         Basic weighted average   36,475,992      33,176,678     32,809,705
         Diluted weighted average 37,214,321      33,672,491     33,450,626

    Balance Sheet:
    Average total assets           $12,487.1       $11,410.6       $8,209.1
    Average loans, net of
     unearned income                 4,368.0         4,544.5        5,226.7
    Average interest-earning
     investment securities           3,295.3         2,514.6        1,357.5
    Average noninterest-
     bearing demand deposits         5,998.4         5,373.5        3,227.0
    Average interest-bearing
     deposits                        3,884.5         3,536.9        2,446.5
    Average total deposits           9,882.9         8,910.4        5,673.5
    Average short-term
     borrowings                         49.5            42.1          232.5
    Average long-term debt             868.9           912.2          968.0
    Period-end total assets         12,841.4        12,538.6       10,018.3
    Period-end loans, net of
     unearned income                 4,548.1         4,655.8        5,506.3
    Period-end investment
     securities                      4,491.8         3,491.3        1,786.1
    Period-end noninterest-
     bearing demand deposits         6,299.0         6,422.9        4,420.0
    Period-end interest-
     bearing deposits                4,032.9         3,632.7        3,053.5
    Period-end total deposits       10,331.9        10,055.6        7,473.5

    Off-Balance Sheet:
    Average total client
     investment funds              $16,101.1       $16,121.5      $21,038.0
    Period-end total client
     investment funds               15,597.8        16,433.8       18,579.7
    Total unfunded credit
     commitments                     5,338.7         4,794.5        5,630.5

    Earnings Ratios:
    Return on average assets
     (3)                             0.66   %        0.84   %       0.01   %
    Return on average common
     SVBFG stockholders' equity
     (4)                                2.44            9.94          (0.31)

    Asset Quality Ratios:
    Allowance for loan losses
     as a percentage of total
     gross loans                     1.58   %        1.85   %       1.93   %
    Gross charge-offs as a
     percentage of average
     total gross loans
     (annualized)                       2.98            4.03           1.93
    Net charge-offs as a
     percentage of average
     total gross loans
     (annualized)                       2.84            2.75           1.80

    Other Ratios:
    Total risk-based capital
     ratio                          19.94   %       19.23   %      17.58   %
    Operating efficiency ratio
     (5)                               61.29           60.61          50.40
    Period-end loans, net of
     unearned income, to
     deposits                          44.02           46.30          73.68
    Average loans, net of
     unearned income, to
     deposits                          44.20           51.00          92.12

    Non-GAAP Ratios: (1)
    Tangible common equity to
     tangible assets                 8.78   %        6.73   %       7.64   %
    Tangible common equity to
     risk-weighted assets              15.05           11.43           9.31
    Non-GAAP return on average
     assets (6)                         1.02            0.84           0.01
    Non-GAAP return on average
     common SVBFG stockholders'
     equity (7)                         7.05            9.94          (0.31)
    Non-GAAP operating
     efficiency ratio                  61.84           60.79          44.76

    Other Statistics:
    Common stock repurchases              $-              $-             $-
    Period-end SVB prime
     lending rate                    4.00   %        4.00   %       4.00   %
    Average SVB prime lending
     rate                               4.00            4.00           4.20



                                                Three months ended
                                                ------------------
                                                   % Change from
                                                   -------------
    (Dollars in millions, except share                        December
     data and ratios)                    September 30,           31,
    ----------------------------------   -------------       ---------
                                                  2009             2008
                                                  ----             ----
    Income Statement:
    Diluted earnings (loss) per common
     share                                    (73.8)  %              NM  %
    Net income attributable to SVBFG             (14.5)              NM
    Net income (loss) available to
     common stockholders                         (70.9)              NM
    Net interest income                            5.5              5.9
    Provision for loan losses                    116.3            (75.6)
    Noninterest income                            18.7             58.4
    Noninterest expense                           10.2             42.2
    Non-GAAP net income (loss)
     available to common stockholders
     (1)                                         (15.0)              NM
    Non-GAAP diluted earnings (loss)
     per common share (1)                        (23.0)              NM
    Non-GAAP noninterest income, net of
     noncontrolling interests (1)                 16.8             (0.6)
    Non-GAAP noninterest expense, net
     of noncontrolling interests (1)              10.0             43.9

    Fully Taxable Equivalent:
         Net interest income (2)                5.4   %          5.9   %
         Net interest margin                      (3.5)           (33.8)

    Shares Outstanding:
         Common                                24.5   %         25.6   %
         Basic weighted average                    9.9             11.2
         Diluted weighted average                 10.5             11.3

    Balance Sheet:
    Average total assets                        9.4   %         52.1   %
    Average loans, net of unearned
     income                                       (3.9)           (16.4)
    Average interest-earning investment
     securities                                   31.0            142.7
    Average noninterest-bearing demand
     deposits                                     11.6             85.9
    Average interest-bearing deposits              9.8             58.8
    Average total deposits                        10.9             74.2
    Average short-term borrowings                 17.6            (78.7)
    Average long-term debt                        (4.7)           (10.2)
    Period-end total assets                        2.4             28.2
    Period-end loans, net of unearned
     income                                       (2.3)           (17.4)
    Period-end investment securities              28.7            151.5
    Period-end noninterest-bearing
     demand deposits                              (1.9)            42.5
    Period-end interest-bearing deposits          11.0             32.1
    Period-end total deposits                      2.7             38.2

    Off-Balance Sheet:
    Average total client investment
     funds                                     (0.1)  %        (23.5)  %
    Period-end total client investment
     funds                                        (5.1)           (16.0)
    Total unfunded credit commitments             11.4             (5.2)

    Earnings Ratios:
    Return on average assets (3)              (21.4)  %              NM  %
    Return on average common SVBFG
     stockholders' equity (4)                    (75.5)              NM

    Asset Quality Ratios:
    Allowance for loan losses as a
     percentage of total gross loans          (14.6)  %        (18.1)  %
    Gross charge-offs as a percentage
     of average total gross loans
     (annualized)                                (26.1)            54.4
    Net charge-offs as a percentage of
     average total gross loans
     (annualized)                                  3.3             57.8

    Other Ratios:
    Total risk-based capital ratio              3.7   %         13.4   %
    Operating efficiency ratio (5)                 1.1             21.6
    Period-end loans, net of unearned
     income, to deposits                          (4.9)           (40.3)
    Average loans, net of unearned
     income, to deposits                         (13.3)           (52.0)

    Non-GAAP Ratios: (1)
    Tangible common equity to tangible
     assets                                    30.5   %         14.9   %
    Tangible common equity to risk-
     weighted assets                              31.7             61.7
    Non-GAAP return on average assets
     (6)                                          21.4               NM
    Non-GAAP return on average common
     SVBFG stockholders' equity (7)              (29.1)              NM
    Non-GAAP operating efficiency ratio            1.7             38.2

    Other Statistics:
    Common stock repurchases                         -   %            -  %
    Period-end SVB prime lending rate                -                -
    Average SVB prime lending rate                   -             (4.8)



                                                    Year ended
                                                    ----------

    (Dollars in millions, except share   December     December
     data and ratios)                       31,          31,        %
    ----------------------------------  ---------    ---------     ---
                                              2009         2008  Change
                                              ----         ----  ------
    Income Statement:
    Diluted earnings (loss) per common                              (69.4)
     share                                   $0.66        $2.16         %

    Net income attributable to SVBFG          48.0         74.3     (35.4)
    Net income (loss) available to
     common stockholders                      22.7         73.6     (69.2)
    Net interest income                      382.2        368.6       3.7

    Provision for loan losses                 90.2        100.7     (10.4)

    Noninterest income                        97.7        152.4     (35.9)
    Noninterest expense                      343.9        312.9       9.9
    Non-GAAP net income (loss)
     available to common stockholders
     (1)                                      38.2         77.4     (50.6)
    Non-GAAP diluted earnings (loss)
     per common share (1)                     1.12         2.28     (50.9)
    Non-GAAP noninterest income, net
     of noncontrolling interests (1)         122.6        160.9     (23.8)
    Non-GAAP noninterest expense, net
     of noncontrolling interests (1)         327.3        297.9       9.9

    Fully Taxable Equivalent:
         Net interest income (2)            $384.4       $370.9    3.6   %

         Net interest margin               3.73   %     5.72   %    (34.8)

    Shares Outstanding:
                                                                     25.6
         Common                         41,338,569   32,917,007         %
         Basic weighted average         33,900,956   32,425,307       4.6
         Diluted weighted average       34,182,771   34,014,581       0.5

    Balance Sheet:
                                                                     52.7
    Average total assets                 $11,326.3     $7,418.3         %
    Average loans, net of unearned
     income                                4,699.7      4,633.0       1.4
    Average interest-earning
     investment securities                 2,282.3      1,338.5      70.5
    Average noninterest-bearing demand
     deposits                              5,289.3      2,946.9      79.5
    Average interest-bearing deposits      3,504.8      1,949.4      79.8
    Average total deposits                 8,794.1      4,896.3      79.6

    Average short-term borrowings             46.1        304.9     (84.9)
    Average long-term debt                   923.9        980.7      (5.8)
    Period-end total assets               12,841.4     10,018.3      28.2
    Period-end loans, net of unearned
     income                                4,548.1      5,506.3     (17.4)
    Period-end investment securities       4,491.8      1,786.1     151.5
    Period-end noninterest-bearing
     demand deposits                       6,299.0      4,420.0      42.5
    Period-end interest-bearing
     deposits                              4,032.9      3,053.5      32.1
    Period-end total deposits             10,331.9      7,473.5      38.2

    Off-Balance Sheet:
    Average total client investment                                 (23.1)
     funds                               $16,593.6    $21,590.0         %
    Period-end total client investment
     funds                                15,597.8     18,579.7     (16.0)
    Total unfunded credit commitments      5,338.7      5,630.5      (5.2)

    Earnings Ratios:
                                                                    (58.0)
    Return on average assets (3)           0.42   %     1.00   %        %
    Return on average common SVBFG
     stockholders' equity (4)                 2.68        10.38     (74.2)

    Asset Quality Ratios:
    Allowance for loan losses as a                                  (18.1)
     percentage of total gross loans       1.58   %     1.93   %        %
    Gross charge-offs as a percentage
     of average total gross loans
     (annualized)                             3.03         1.02     197.1
    Net charge-offs as a percentage of
     average total gross loans
     (annualized)                             2.64         0.87     NM

    Other Ratios:
                                                                     13.4
    Total risk-based capital ratio        19.94   %    17.58   %        %
    Operating efficiency ratio (5)           71.33        59.80      19.3
    Period-end loans, net of unearned
     income, to deposits                     44.02        73.68     (40.3)
    Average loans, net of unearned
     income, to deposits                     53.44        94.62     (43.5)

    Non-GAAP Ratios: (1)
    Tangible common equity to tangible                               14.9
     assets                                8.78   %     7.64   %        %
    Tangible common equity to risk-
     weighted assets                         15.05         9.31      61.7
    Non-GAAP return on average assets
     (6)                                      0.56         1.05     (46.7)
    Non-GAAP return on average common
     SVBFG stockholders' equity (7)           4.51        10.93     (58.7)
    Non-GAAP operating efficiency ratio      64.56        56.07      15.1

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

    Average SVB prime lending rate            4.00         5.13     (22.0)



    NM-  Not meaningful
    (1)  A reconciliation of non-GAAP calculations to GAAP is provided below
         under the section "Use of Non-GAAP Financial Measures".
    (2)  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, $0.5 million and $0.6 million for the quarters ended
         December 31, 2009, September 30, 2009 and December 31, 2008,
         respectively. The taxable equivalent adjustments were $2.2 million
         and $2.3 million for the years ended December 31, 2009 and 2008,
         respectively.
    (3)  Ratio represents annualized consolidated net income attributable to
         SVB Financial Group ("SVBFG") divided by quarterly average assets
         and annual average assets.
    (4)  Ratio represents annualized consolidated net income (loss) available
         to common stockholders divided by quarterly average SVBFG
         stockholders' equity (excluding preferred equity) and annual
         average SVBFG stockholders' equity (excluding preferred equity).
    (5)  The operating efficiency ratio is calculated by dividing noninterest
         expense by total taxable equivalent net interest income plus
         noninterest income.
    (6)  Ratio represents non-GAAP annualized consolidated net income
         attributable to SVBFG (excluding a non-tax deductible charge of
         $11.4 million related to TARP repayment in the fourth quarter of
         2009, a 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 annual average assets.
    (7)  Ratio represents non-GAAP annualized consolidated net income (loss)
         available to common stockholders (excluding a non-tax deductible
         charge of $11.4 million related to TARP repayment in the fourth
         quarter of 2009, a 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 annual average SVBFG stockholders'
         equity (excluding preferred equity).


Net Interest Income and Margin

Net interest income, on a fully taxable equivalent basis, was $102.7 million for the fourth quarter of 2009, compared to $97.4 million for the third quarter of 2009 and $97.0 million for the fourth 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 third to the fourth 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:



                                               Q4'09 compared to Q3'09
                                               -----------------------
                                              Increase (decrease) due to
                                                       change in
                                              ---------------------------
    (Dollars in thousands)               Volume         Rate        Total
    ----------------------               ------         ----        -----
    Interest income:
        Short-term investment securities    $264         $(69)        $195
        Investment securities              6,919         (170)       6,749
        Loans                            (3,241)          450      (2,791)
                                          ------          ---       ------
    Increase in interest income, net       3,942          211        4,153
                                           -----          ---        -----

    Interest expense:
        Deposits                             407      (1,115)         (708)
        Short-term borrowings                  3           (4)          (1)
        Long-term debt                      (215)        (239)        (454)
                                            ----         ----         ----
    Increase (decrease) in interest
     expense, net                            195      (1,358)      (1,163)
                                             ---       ------       ------
    Increase in net interest income       $3,747       $1,569       $5,316
                                          ======       ======       ======


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

Net interest margin, on a fully taxable equivalent basis, was 3.57 percent for the fourth quarter of 2009, compared to 3.70 percent for the third quarter of 2009 and 5.39 percent for the fourth quarter of 2008. The decrease from the third to the fourth quarter of 2009 was primarily a result of a decline in loan balances and an increase in deposits. Consistent with our liquidity and investment strategies, we invested excess liquidity resulting from our continued growth in deposits in overnight cash with the Federal Reserve earning 25 basis points throughout the fourth quarter of 2009. The decline was partially offset by an increase in investments in interest-earning investment securities. While our net interest margin declined quarter-over-quarter, net interest income, on a fully taxable equivalent basis, increased by $5.3 million to $102.7 million for the fourth quarter of 2009, compared to $97.4 million for the third quarter of 2009.

Net interest margin, on a fully taxable equivalent basis, was 3.73 percent and 5.72 percent for the years ended December 31, 2009 and 2008, respectively. While our net interest margin declined year-over-year, net interest income, on a fully taxable equivalent basis, increased to $384.4 million for 2009, compared to $370.9 million for 2008.

On an average basis, for the fourth quarter of 2009, 70.4 percent, or $3.1 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 $3.3 billion, for the third quarter of 2009 and 74.2 percent, or $4.0 billion, for the fourth quarter of 2008.

Investment Securities

Our investment securities portfolio consists of both a fixed income investment portfolio, which primarily represents interest-earning investment securities, and a non-marketable securities portfolio, which primarily represents investments managed as part of our funds management business. Total investment securities were $4.5 billion at December 31, 2009, compared to $3.5 billion at September 30, 2009 and $1.8 billion at December 31, 2008. The increase from the third to the fourth quarter of 2009 was primarily in the fixed income investment portfolio due to securities purchased with excess liquidity resulting from our continued growth in deposits.

Average interest-earning investment securities were $3.3 billion for the fourth quarter of 2009, compared to $2.5 billion for the third quarter of 2009 and $1.4 billion for the fourth quarter of 2008. Period-end interest-earning investment securities were $3.9 billion at December 31, 2009, compared to $3.0 billion at September 30, 2009 and $1.3 billion at December 31, 2008.

Non-marketable securities were $553.5 million ($233.0 million net of noncontrolling interests) as of December 31, 2009, compared to $507.9 million ($211.9 million net of noncontrolling interests) as of September 30, 2009 and $467.2 million ($169.1 million net of noncontrolling interests) as of December 31, 2008. The increase from the third to the fourth quarter of 2009 was primarily attributable to additional capital calls for fund investments in the fourth 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 $4.4 billion for the fourth quarter of 2009, compared to $4.5 billion for the third quarter of 2009 and $5.2 billion for the fourth quarter of 2008. The decrease in average loan balances from the third to the fourth quarter of 2009 came primarily from decreases in loans to hardware, software and life science clients, reflecting continued efforts by some clients to deleverage their businesses. Although loan balances have decreased, we continue to make new loans, adding 165 new loan clients in the fourth quarter of 2009, resulting in $380.7 million in new funded loans.

Period-end loans, net of unearned income, were $4.5 billion at December 31, 2009, compared to $4.7 billion at September 30, 2009 and $5.5 billion at December 31, 2008.

Our nonperforming loans totaled $52.7 million at December 31, 2009, compared to $72.2 million at September 30, 2009 and $87.2 million at December 31, 2008. The allowance for loan losses related to nonperforming loans was $8.9 million, $23.4 million and $25.9 million at December 31, 2009, September 30, 2009 and December 31, 2008, respectively. The decrease in nonperforming loans and related allowance for loan losses from the third to the fourth quarter of 2009 came primarily from the charge-offs of impaired loans from our hardware and private client services portfolios.

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



                                   Loans individually greater than $20
                                                million at
                                   -----------------------------------
    (Dollars in thousands, except   December    September        December
     ratios and client data)           31,         30,              31,
    -----------------------------  ---------   ----------       ---------
                                         2009         2009            2008
                                         ----         ----            ----
    Technology                       $356,072     $458,901        $567,867
    Private Equity                    371,728      272,920         352,065
    Life Sciences                      45,667       45,717          54,201
    Private Client Services            87,179       69,652         105,176
    Premium Wineries                   76,786       20,307          20,310
    All other sectors                  20,125       21,000          50,500
                                       ------       ------          ------
    Total                            $957,557     $888,497      $1,150,119
                                     ========     ========      ==========

    Loans individually greater
     than $20 million as a
     percentage of total gross
     loans                            20.9   %     18.9   %        20.7   %
    Total clients with loans
     individually greater than $20
     million                               32           28              36
    Loans individually greater
     than $20 million on
     nonaccrual status                $20,407      $20,022         $66,715
    Loans individually greater
     than $20 million on
     nonaccrual status as a
     percentage of total loans
     greater than $20 million        2.1   %   2.3   %      5.8   %


Deposits

Average deposits were $9.9 billion for the fourth quarter of 2009, compared to $8.9 billion for the third quarter of 2009 and $5.7 billion for the fourth quarter of 2008. The increase in average deposit balances from the third to the fourth quarter of 2009 came primarily from our noninterest-bearing demand deposits, which grew by $624.9 million to $6.0 billion.

Growth in average balances of noninterest-bearing deposits in the fourth quarter of 2009 was primarily due to the continued low interest rate environment, as well as our clients' desire to maintain short-term liquidity.

Period-end deposits were $10.3 billion at December 31, 2009, compared to $10.1 billion at September 30, 2009 and $7.5 billion at December 31, 2008.

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 third and fourth quarters of 2009 decreased by $0.3 million. Details of certain prior period revised items related to the adoption of this guidance are provided under the section "Changes to Prior Period Balances."

Noninterest Income

Noninterest income was $40.7 million for the fourth quarter of 2009, compared to $34.3 million for the third quarter of 2009 and $25.7 million for the fourth quarter of 2008. The increase in noninterest income from the third to the fourth quarter of 2009 was primarily driven by the following factors:

  • Net gains on investment securities of $6.7 million for the fourth quarter of 2009, compared to net gains of $3.9 million for the third quarter of 2009 and net losses of $9.8 million for the fourth quarter of 2008. The net gains of $6.7 million for the fourth quarter of 2009 were primarily due to unrealized gains of $5.8 million from our managed co-investment funds as a result of higher valuations, and realized gains of $3.6 million from distributions to our managed funds of funds. These gains were partially offset by realized losses of $3.0 million from our managed co-investment funds due to closures and asset sales at three portfolio companies. The following table provides a summary of net gains (losses) on investment securities for the three months ended December 31, 2009 and September 30, 2009:
Three months ended ------------------ December 31, 2009 ----------------- Managed Co- Managed Investment Funds Of Debt (Dollars in thousands) Funds Funds Funds ---------------------- ----------- -------- ----- Unrealized gains $5,819 $184 $467 Realized (losses) gains (3,022) 3,633 376 ------ ----- --- Total gains (losses) on investment securities, net $2,797 $3,817 $843 ====== ====== ==== Less: income attributable to noncontrolling interests, including carried interest 1,925 3,856 72 ----- ----- --- Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests $872 $(39) $771 ==== ==== ==== Three months ended ------------------ September 30, December 31, 2009 2009 ----------------- -------------- (Dollars in thousands) Other Total Total ---------------------- ----- ----- ----- Unrealized gains $205 $6,675 $2,615 Realized (losses) gains (981) 6 1,290 ---- --- ----- Total gains (losses) on investment securities, net $(776) $6,681 $3,905 ===== ====== ====== Less: income attributable to noncontrolling interests, including carried interest - 5,853 4,880 --- ----- ----- Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests $(776) $828 $(975) ===== ==== ===== As of December 31, 2009, we held investments, either directly or through nine of our managed investment funds, in 446 venture capital and private equity funds, 73 companies and five debt funds. --Net gains on derivative instruments of $1.4 million for the fourth quarter of 2009, compared to net losses of $1.1 million for the third quarter of 2009 and net gains of $5.0 million for the fourth quarter of 2008. The following table provides a summary of our net gains (losses) on derivative instruments: Three months ended ------------------ December December (Dollars in thousands) 31, September 30, 31, ---------------------- --------- ------------- --------- 2009 2009 2008 ---- ---- ---- Gains (losses) on foreign exchange forward contracts, net: Gains on client foreign exchange forward contracts, net $426 $360 $2,466 Gains (losses) on internal foreign exchange forward contracts, net (1) 406 (128) 3,200 --- ---- ----- Total gains (losses) on foreign exchange forward contracts, net 832 232 5,666 Change in fair value of interest rate swap - - (2,232) Gains on covered call options (2) - - - Net gains (losses) on equity warrant assets 538 (1,322) 1,592 --- ------ ----- Total gains (losses) on derivative instruments, net $1,370 $(1,090) $5,026 ====== ======= ====== Year ended ---------- December December (Dollars in thousands) 31, 31, ---------------------- --------- --------- 2009 2008 ---- ---- Gains (losses) on foreign exchange forward contracts, net: Gains on client foreign exchange forward contracts, net $1,730 $4,233 Gains (losses) on internal foreign exchange forward contracts, net (1) (2,258) 5,185 ------ ----- Total gains (losses) on foreign exchange forward contracts, net (528) 9,418 Change in fair value of interest rate swap (170) (1,856) Gains on covered call options (2) - 402 Net gains (losses) on equity warrant assets (55) 10,541 --- ------ Total gains (losses) on derivative instruments, net $(753) $18,505 ===== ======= (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. (2) Represents net gains on covered call options by one of our consolidated sponsored debt funds.

The increase in net gains (losses) on derivative instruments from the third to the fourth quarter of 2009 was primarily driven by the following factors:

Non-GAAP noninterest income, net of noncontrolling interests, was $34.1 million for the fourth quarter of 2009, compared to $29.2 million for the third quarter of 2009 and $34.3 million for the fourth 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 $87.9 million for the fourth quarter of 2009, compared to $79.8 million for the third quarter of 2009 and $61.8 million for the fourth quarter of 2008.

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



                                             Three months ended
                                             ------------------
                                           December   September December
    (Dollars in thousands)                    31,         30,      31,
    ----------------------                --------- ---------- ---------
                                                2009        2009     2008
                                                ----        ----     ----
    Compensation and benefits:
       Salaries and wages                    $26,481     $26,100  $27,116
       Incentive Compensation Plan             7,872       6,732   (8,782)
       Employee Stock Ownership Plan               -           -   (4,370)
       Other employee benefits                14,236      12,983    9,913
                                              ------      ------    -----
    Total compensation and benefits           48,589      45,815   23,877
    FDIC assessments                           3,182       2,589    1,644
    Impairment of goodwill                         -           -        -
    Provision for (reduction of) unfunded
     credit commitments                        1,999          65    1,607
    Other (1)                                 34,137      31,338   34,702
                                              ------      ------   ------
    Total noninterest expense                $87,907     $79,807  $61,830
                                             =======     =======  =======

    Full-time equivalent employees             1,258       1,259    1,244
                                               =====       =====    =====



                                                        Year ended
                                                        ----------
                                                December        December
    (Dollars in thousands)                         31,             31,
    ----------------------                     ---------       ---------
                                                     2009            2008
                                                     ----            ----
    Compensation and benefits:
       Salaries and wages                        $108,417        $103,157
       Incentive Compensation Plan                 25,163          24,398
       Employee Stock Ownership Plan                    -             235
       Other employee benefits                     56,051          49,525
                                                   ------          ------
    Total compensation and benefits               189,631         177,315
    FDIC assessments                               17,035           3,451
    Impairment of goodwill                          4,092               -
    Provision for (reduction of) unfunded
     credit commitments                            (1,367)          1,252
    Other (1)                                     134,475         130,869
                                                  -------         -------
    Total noninterest expense                    $343,866        $312,887
                                                 ========        ========

    Full-time equivalent employees                  1,258           1,244
                                                    =====           =====



    (1)    Other noninterest expense includes professional services, premises
           and equipment, net occupancy, business development and travel,
           correspondent bank fees, loss from cash settlement of conversion
           premium of zero-coupon convertible subordinated notes, and other
           noninterest expenses. For further details of noninterest expense
           items, please refer to "Interim Consolidated Statements of
           Income".


The increase in noninterest expense from the third to the fourth quarter of 2009 was primarily attributable to the following:

Non-GAAP noninterest expense, net of noncontrolling interests, was $84.6 million for the fourth quarter of 2009, compared to $76.9 million for the third quarter of 2009 and $58.8 million for the fourth 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 39.6 percent for the fourth quarter of 2009, compared to 41.1 percent for the third quarter of 2009. The decrease in the tax rate from the third to the fourth quarter of 2009 was primarily attributable to the higher impact of tax advantaged investments, partially offset by the tax impact of higher non-deductible officers' compensation expense on overall pre-tax income.

Our effective tax rate was 42.3 percent for the year ended December 31, 2009, compared to 41.3 percent for 2008. 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
                                         ------------------
    (Dollars in thousands, except  December September
     ratios)                           31,        30,       December 31,
    -----------------------------        2009        2009           2008
                                         ----        ----           ----
    Allowance for loan losses,
     beginning balance                $86,713    $110,473        $60,290
    Provision for loan losses          17,291       8,030         70,957
    Gross loan charge-offs            (33,106)    (46,553)       (25,509)
    Loan recoveries                     1,552      14,763          1,658
                                        -----      ------          -----
    Allowance for loan losses,
     ending balance                   $72,450     $86,713       $107,396
    --------------------------        =======     =======       ========
    Provision as a percentage of
     total gross loans
     (annualized)                     1.50   %    0.68   %       5.08   %
    Gross loan charge-offs as a
     percentage of average total
     gross loans (annualized)            2.98        4.03           1.93
    Net loan charge-offs as a
     percentage of average total
     gross loans (annualized)            2.84        2.75           1.80
    Allowance for loan losses as a
     percentage of total gross
     loans                               1.58        1.85           1.93
    Total gross loans at period-
     end                           $4,582,966  $4,692,498     $5,551,636
    Average total gross loans       4,402,909   4,583,320      5,266,916



                                                         Year ended
                                                         ----------
    (Dollars in thousands, except ratios)     December 31,      December 31,
    -------------------------------------             2009              2008
                                                      ----              ----
    Allowance for loan losses, beginning
     balance                                      $107,396           $47,293
    Provision for loan losses                       90,180           100,713
    Gross loan charge-offs                        (143,570)          (47,815)
    Loan recoveries                                 18,444             7,205
                                                    ------             -----
    Allowance for loan losses, ending balance      $72,450          $107,396
    -----------------------------------------      =======          ========
    Provision as a percentage of total gross
     loans (annualized)                            1.97   %          1.81   %
    Gross loan charge-offs as a percentage
     of average total gross loans
     (annualized)                                     3.03              1.02
    Net loan charge-offs as a percentage of
     average total gross loans (annualized)           2.64              0.87
    Allowance for loan losses as a percentage
     of total gross loans                             1.58              1.93
    Total gross loans at period-end             $4,582,966        $5,551,636
    Average total gross loans                    4,739,210         4,666,025


Our provision for loan losses was $17.3 million for the fourth quarter of 2009, an increase of $9.3 million from the third quarter of 2009. Our provision for loan losses in the third quarter of 2009 was inclusive of an $11.4 million recovery from a single loan.

Gross loan charge-offs of $33.1 million for the fourth quarter of 2009, primarily came from our software and hardware client portfolios. Gross loan charge-offs included $17.0 million of loans that were previously included as nonperforming loans.

Our allowance for loan losses decreased from $107.4 million at December 31, 2008 to $72.5 million at December 31, 2009. The decrease in allowance for loan losses is reflective of continuing improvement in credit quality trends in our loan portfolio since the second quarter of 2009 as indicated by several factors including the following:

Additionally, while loans greater than $10 million represented a significant source of loan losses in 2009, the size of loans added to the classified portfolio during the latter half of 2009 were less than $10 million with the largest addition being $8.8 million and the largest addition to nonperforming loans in the fourth quarter of 2009 was $1 million. Our overall percentage of allowance for loan losses decreased from a high of 2.26 percent at June 30, 2009, to 1.58 percent at December 31, 2009 due almost entirely to the successful resolution of the large nonperforming loans and the fact that new additions to nonperforming loans have been smaller in size and are expected to maintain that trend into 2010.

As such, we believe that our current allowance for loan losses of $72.5 million (1.58 percent of total gross loans) is adequate and indicative of ongoing levels of future net charge-offs. The following table provides a summary of our credit quality information:



                                       Period end balances at
                                       ----------------------
    (Dollars in thousands, except    December                  December
     ratios)                            31,     September 30,     31,
    -----------------------------   ---------   ------------- ---------
                                          2009           2009       2008
                                          ----           ----       ----
    Allowance for loan losses as a
     percentage of total gross
     loans                             1.58   %       1.85   %   1.93   %
    Allowance for loan losses for
     performing loans as a
     percentage of total gross
     performing loans                     1.40           1.37       1.49
    Allowance for loan losses for
     nonperforming loans as a
     percentage of total gross
     nonperforming loans                 16.83          32.36      29.70
    Allowance for loan losses          $72,450        $86,713   $107,396
    Allowance for loan losses for
     total gross performing loans       63,582         63,357     81,485
    Allowance for loan losses for
     total gross nonperforming
     loans                               8,868         23,356     25,911
    Total gross performing loans     4,530,283      4,620,325  5,464,387
    Total gross nonperforming loans     52,683         72,173     87,249


Noncontrolling Interests

Net income attributable to noncontrolling interests was $3.3 million for the fourth quarter of 2009, compared to net income of $2.2 million for the third quarter of 2009 and a net loss of $11.7 million for the fourth quarter of 2008. Net income attributable to noncontrolling interests of $3.3 million for the fourth quarter of 2009 was primarily a result of the following:

SVBFG Stockholders' Equity

In the fourth quarter of 2009, we closed a public offering of 7,965,568 shares of common stock at an offering price of $38.50 per share. We received net proceeds of $292.1 million after deducting underwriting discounts and commissions.

On December 23, 2009, the Company redeemed in full 235,000 outstanding shares of preferred stock, for $235 million, plus $1.2 million of accrued and unpaid dividends, from the U.S. Treasury under the CPP. The redemption of the preferred shares resulted in a non-cash charge of $11.4 million in the fourth quarter of 2009.

Net income available to common stockholders was reduced by $14.7 million and $3.6 million for the fourth and third quarters of 2009, respectively, related to dividends and discount amortization in connection with our preferred stock issued under the CPP on December 12, 2008 and the subsequent repayment on December 23, 2009.

Accumulated other comprehensive income decreased by $19.6 million to $5.9 million as of December 31, 2009, compared to $25.5 million as of September 30, 2009, primarily due to decreases in the fair value of our fixed income investment portfolio as a result of increases in long-term interest rates.

Additional paid-in-capital increased by $297.1 million to $389.5 million as of December 31, 2009, compared to $92.4 million as of September 30, 2009, primarily due to the closing of our public offering on November 24, 2009.

Outlook for the Year Ending December 31, 2010

Our outlook for the year ending December 31, 2010 is provided below on a GAAP basis, unless otherwise noted. We have provided our current outlook for the expected full year results of our significant forecasted activities. In general, we do not provide our outlook for selected items where the timing or financial impact are particularly uncertain, or for certain potential unusual or one-time items, nevertheless, we have provided directional guidance on two such items, specifically net gains (losses) on equity warrant assets and net gains (losses) 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, 2010, compared to our 2009 results, we currently expect the following outlook:



                                  Current outlook compared to 2009
                                  results (as of January 21, 2010)
                                    --------------------------------
    Average loan balances            Comparable to 2009 levels
    ---------------------            -------------------------
                               Increase at a percentage rate in the
    Average deposit balances             low double digits
    ------------------------  -------------------------------------
                               Increase at a percentage rate in the
    Net interest income                      mid teens
    -------------------       -------------------------------------
    Net interest margin                        Between 3.60% - 4.00%
    -------------------                        ---------------------
    Allowance for loan
     losses as a percentage
     of period end gross         Comparable to fourth quarter 2009
     loans                                     levels
    -----------------------     ----------------------------------
    Net loan charge-offs             Decline from 2009 levels
    -----------------------          ------------------------
    Nonperforming loans as a
     percentage of total        At levels lower than fourth quarter
     gross loans                            2009 levels
    ------------------------   ------------------------------------
    Fees for deposit
     services, letters of
     credit, business credit
     card, client
     investment, and foreign   Increase at a percentage rate in the
     exchange, in aggregate              mid single digits
    ------------------------  -------------------------------------
    Net gains (losses) on
     equity warrant assets           Comparable to 2009 levels
    ----------------------           -------------------------
    Net gains (losses) on
     investment securities,
     net of noncontrolling
     interests*                    Improvement from 2009 levels
    -----------------------        ----------------------------
    Noninterest expense*
     (excluding expenses
     related to goodwill
     impairment and
     noncontrolling            Increase at a percentage rate in the
     interests)                      high teens to low twenties
    --------------------      -------------------------------------


* 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, 2010" above, we make forward-looking statements discussing management's expectations about economic conditions, opportunities in the market, our financial, credit (including our allowance for loan losses) and business performance and financial results (and the components of such results) for the year 2010.

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 2010 and other forward-looking statements herein to change include, among others, the following: (i) 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 (including the levels of initial public offering and mergers & acquisitions activities), (ii) changes in credit quality of our loan portfolio, (iii) changes in interest rates or market levels or factors affecting them, (iv) changes in the performance or equity valuations of funds or companies in which we have invested or hold derivative instruments or equity warrant assets, (v) variations from our expectations as to factors impacting our cost structure, (vi) changes in our assessment of the creditworthiness or liquidity of our clients or unanticipated effects of credit concentration risks which create or exacerbate deterioration of such creditworthiness or liquidity, and (vii) accounting changes, as required by U.S. generally accepted accounting principles. 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 January 21, 2010, we will host a conference call at 3:00 p.m. (Pacific Time) to discuss the financial results for the fourth quarter and year ended December 31, 2009. The conference call can be accessed by dialing (877) 663-9523 or (404) 665-9482, and referencing the conference ID "51134160". 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, January 21, 2010, through midnight on Tuesday, January 26, 2010, by dialing (800) 642-1687 or (706) 645-9291 and referencing conference ID number "51134160". A replay of the audio webcast will also be available on www.svb.com for 12 months beginning Thursday, January 21, 2010.

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. For management reporting purposes, we report the results of our operations through four operating segments: Global Commercial Bank, Relationship Management, SVB Capital, and Other Business Services. Our Other Business Services group consists of Sponsored Debt Funds & Strategic Investments and SVB Analytics. Headquartered in Santa Clara, California, SVB Financial Group operates through 27 offices in the U.S. and international operations in China, India, Israel and the United Kingdom. More information on the Company can be found at www.svb.com. (SIVB-F)

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


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


                                               Three months ended
                                               ------------------
    (Dollars in thousands,          December                        December
     except share data)                31,     September 30,           31,
    ----------------------         ---------   -------------       ---------
                                         2009           2009             2008
                                         ----           ----             ----
    Interest income:
       Loans                          $80,258        $83,049          $95,662
       Investment securities:
         Taxable                       28,329         21,562           14,789
         Non-taxable                      996          1,008            1,140
       Federal funds sold,
        securities purchased under
        agreements to resell and
        other short-term
        investment securities        2,562       2,367         2,059
       ---------------------------      -----          -----            -----
    Total interest income             112,145        107,986          113,650
    ---------------------             -------        -------          -------
    Interest expense:
      Deposits                          4,093          4,801            7,021
      Borrowings                        5,912          6,367           10,219
      ----------                        -----          -----           ------
    Total interest expense             10,005         11,168           17,240
    ----------------------             ------         ------           ------
    Net interest income               102,140         96,818           96,410
    Provision for loan losses          17,291          8,030           70,957
    -------------------------          ------          -----           ------
    Net interest income after
     provision for loan losses         84,849         88,788           25,453
    --------------------------         ------         ------           ------
    Noninterest income:
      Foreign exchange fees             8,161          7,491            8,660
      Deposit service charges           7,344          6,906            6,034
      Client investment fees            4,344          5,527            9,492
      Letters of credit and
       standby letters of credit
       income                           2,093          3,019            2,868
      Credit card fees                  2,618          2,300            1,550
      Corporate finance fees                -              -                -
      Gains (losses) on derivative
       instruments, net                 1,370         (1,090)           5,026
      Gains (losses) on investment
       securities, net                  6,681          3,905           (9,828)
      Other                             8,131          6,249            1,858
      -----                             -----          -----            -----
    Total noninterest income           40,742         34,307           25,660
    ------------------------           ------         ------           ------
    Noninterest expense:
      Compensation and benefits        48,589         45,815           23,877
      Professional services            11,088         12,109           11,924
      Premises and equipment            6,277          5,892            5,759
      Net occupancy                     4,542          4,198            4,482
      FDIC assessments                  3,182          2,589            1,644
      Business development and
       travel                           4,436          2,902            4,831
      Correspondent bank fees           2,046          2,118            1,617
      Impairment of goodwill                -              -                -
      Loss from cash settlement of
       conversion premium of zero-
       coupon
        convertible subordinated
         notes                              -              -                -
      Provision for (reduction of)
       unfunded credit commitments      1,999             65            1,607
      Other                             5,748          4,119            6,089
      -----                             -----          -----            -----
    Total noninterest expense          87,907         79,807           61,830
    -------------------------          ------         ------           ------
    Income (loss) before income
     tax expense                       37,684         43,288          (10,717)
    Income tax expense                 13,602         16,879              863
    ------------------                 ------         ------              ---
    Net income (loss) before
     noncontrolling interests          24,082         26,409          (11,580)
    Net (income) loss
     attributable to
     noncontrolling interests          (3,338)        (2,246)          11,694
    -------------------------          ------         ------           ------
    Net income attributable to
     SVBFG                            $20,744        $24,163             $114
    ==========================        =======        =======             ====
    Preferred stock dividend and
     discount accretion               (14,700)        (3,555)            (707)
    ----------------------------      -------         ------             ----
    Net income (loss) available
     to common stockholders            $6,044        $20,608            $(593)
    ===========================        ======        =======            =====
    Earnings (loss) per common
     share - basic                      $0.17          $0.62           $(0.02)
    Earnings (loss) per common
     share - diluted                    $0.16          $0.61           $(0.02)
    Weighted average common
     shares outstanding - basic    36,475,992     33,176,678       32,809,705
    Weighted average common
     shares outstanding -
     diluted                       37,214,321     33,672,491       33,450,626



                                                          Year ended
                                                          ----------
                                                 December         December
    (Dollars in thousands, except share data)       31,              31,
    -----------------------------------------   ---------        ---------
                                                      2009             2008
                                                      ----             ----
    Interest income:
       Loans                                      $335,806         $364,192
       Investment securities:
         Taxable                                    81,536           58,466
         Non-taxable                                 4,094            4,261
       Federal funds sold, securities purchased
        under agreements to resell and other
        short-term investment securities             9,790           12,572
       ----------------------------------------      -----           ------
    Total interest income                          431,226          439,491
    ---------------------                          -------          -------
    Interest expense:
      Deposits                                      21,346           23,929
      Borrowings                                    27,730           46,967
      ----------                                    ------           ------
    Total interest expense                          49,076           70,896
    ----------------------                          ------           ------
    Net interest income                            382,150          368,595
    Provision for loan losses                       90,180          100,713
    -------------------------                       ------          -------
    Net interest income after provision for
     loan losses                                   291,970          267,882
    ---------------------------------------        -------          -------
    Noninterest income:
      Foreign exchange fees                         30,735           33,106
      Deposit service charges                       27,663           24,110
      Client investment fees                        21,699           50,498
      Letters of credit and standby letters of
       credit income                                10,333           12,006
      Credit card fees                               9,314            6,225
      Corporate finance fees                             -            3,640
      Gains (losses) on derivative instruments,
       net                                            (753)          18,505
      Gains (losses) on investment securities,
       net                                         (31,209)         (14,777)
      Other                                         29,961           19,052
      -----                                         ------           ------
    Total noninterest income                        97,743          152,365
    ------------------------                        ------          -------
    Noninterest expense:
      Compensation and benefits                    189,631          177,315
      Professional services                         46,540           39,480
      Premises and equipment                        23,270           22,183
      Net occupancy                                 17,888           17,307
      FDIC assessments                              17,035            3,451
      Business development and travel               14,014           15,406
      Correspondent bank fees                        8,040            6,628
      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                           (1,367)           1,252
      Other                                         24,723           26,007
      -----                                         ------           ------
    Total noninterest expense                      343,866          312,887
    -------------------------                      -------          -------
    Income (loss) before income tax expense         45,847          107,360
    Income tax expense                              35,207           52,213
    ------------------                              ------           ------
    Net income (loss) before noncontrolling
     interests                                      10,640           55,147
    Net (income) loss attributable to
     noncontrolling interests                       37,370           19,139
    ---------------------------------               ------           ------
    Net income attributable to SVBFG               $48,010          $74,286
    ================================               =======          =======
    Preferred stock dividend and discount
     accretion                                     (25,336)            (707)
    -------------------------------------          -------             ----
    Net income (loss) available to common
     stockholders                                  $22,674          $73,579
    =====================================          =======          =======
    Earnings (loss) per common share - basic         $0.67            $2.27
    Earnings (loss) per common share - diluted       $0.66            $2.16
    Weighted average common shares outstanding
     - basic                                    33,900,956       32,425,307
    Weighted average common shares outstanding
     - diluted                                  34,182,771       34,014,581


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


    (Dollars in
     thousands, except
     par value, share          December        September         December
     data and ratios)             31,             30,               31,
    ------------------          --------        ---------         --------
                                    2009             2009             2008
                                    ----             ----             ----
    Assets:
    Cash and due from
     banks                    $3,454,611       $4,062,298       $1,958,333
    Federal funds sold,
     securities
     purchased under
     agreements to
     resell and other
     short-term
     investment
     securities              58,242        48,530       478,392
    Investment
     securities                4,491,752        3,491,281        1,786,100
    Loans, net of
     unearned income           4,548,094        4,655,817        5,506,253
    Allowance for loan
     losses                      (72,450)         (86,713)        (107,396)
    ------------------           -------          -------         --------
    Net loans                  4,475,644        4,569,104        5,398,857
    ---------                  ---------        ---------        ---------
    Premises and
     equipment, net of
     accumulated
     depreciation and
     amortization            31,736        30,722        30,589
    Goodwill                           -                -            4,092
    Accrued interest
     receivable and
     other assets                329,414          336,668          361,917
    ----------------             -------          -------          -------
    Total assets             $12,841,399      $12,538,603      $10,018,280
    ============             ===========      ===========      ===========

    Liabilities and
     total equity:
    Liabilities:
      Deposits:
        Noninterest-bearing
         demand               $6,298,988       $6,422,937       $4,419,965
        Negotiable order of
         withdrawal (NOW)         53,200           39,818           58,133
        Money market           1,292,215        1,198,611        1,213,086
        Money market
         deposits in foreign
         offices                  49,722           64,701           53,123
        Time                     332,310          333,870          379,200
        Sweep                  2,305,502        1,995,695        1,349,965
        -----                  ---------        ---------        ---------
      Total deposits          10,331,937       10,055,632        7,473,472
      --------------          ----------       ----------        ---------
      Short-term
       borrowings                 38,755           52,285           62,120
      Other liabilities          139,947          171,166          175,553
      Long-term debt             856,650          866,748          995,423
      --------------             -------          -------          -------
    Total liabilities         11,367,289       11,145,831        8,706,568
    -----------------         ----------       ----------        ---------

    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;
       0 and 235,000
       shares issued and
       outstanding, net of
       discount,
       respectively               -       223,009       221,185
      Common stock, $0.001
       par value,
       150,000,000 shares
       authorized;
       41,338,569 shares,
       33,202,387 shares
       and 32,917,007
       shares outstanding,
       respectively              41            33            33
      Additional paid-in
       capital                   389,490           92,367           66,201
      Retained earnings          732,907          726,455          709,726
      Accumulated other
       comprehensive
       income (loss)               5,905           25,513           (5,789)
      -----------------            -----           ------           ------
    Total SVBFG
     stockholders'
     equity                    1,128,343        1,067,377          991,356
    Noncontrolling
     interests                   345,767          325,395          320,356
    --------------               -------          -------          -------
    Total equity               1,474,110        1,392,772        1,311,712
    ------------               ---------        ---------        ---------
    Total liabilities
     and total equity        $12,841,399      $12,538,603      $10,018,280
    =================        ===========      ===========      ===========

    Capital Ratios:
    Total risk-based
     capital ratio              19.94   %        19.23   %        17.58   %
    Tier 1 risk-based
     capital ratio                 15.45            14.59            12.51
    Tier 1 leverage
     ratio                          9.53             9.71            13.00
    Tangible common
     equity to tangible
     assets ratio (1)               8.78             6.73             7.64
    Tangible common
     equity to risk-
     weighted assets
     ratio                         15.05            11.43             9.31

    Other Period-End
     Statistics:
    Loans, net of
     unearned income-
     to-deposits ratio          44.02   %        46.30   %        73.68   %
    Book value per
     common share (2)             $27.30           $25.43           $23.40
    Full-time
     equivalent
     employees                     1,258            1,259            1,244



    (1)     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.
    (2)     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
                                                 ------------------
                                                  December 31, 2009
                                                  -----------------
    (Dollars in thousands)             Average         Interest       Yield/
    ----------------------             -------         --------
                                       Balance          Income/        Rate
                                       -------                         ----
                                                        Expense
                                                        -------
    Interest-earning assets:
    ------------------------
    Federal funds sold,
     securities purchased under
     agreements to resell and
     other short-term investment
     securities (1)                 $3,755,892      $2,562    0.27  %
    Investment securities: (2)
      Taxable                           3,194,147         28,329         3.52
      Non-taxable (3)                     101,107          1,532         6.01
    Total loans, net of unearned
     income (4)                         4,367,985         80,258         7.29
    ----------------------------        ---------         ------         ----
    Total interest-earning assets      11,419,131        112,681         3.92
    -----------------------------      ----------        -------         ----
    Cash and due from banks               232,266
    Allowance for loan losses             (91,653)
    Goodwill                                    -
    Other assets (5)                      927,348
    ----------------                      -------
    Total assets                      $12,487,092
    ============                      ===========

    Funding sources:
    ----------------
    Interest-bearing liabilities:
      NOW deposits                        $40,151            $40      0.40   %
      Regular money market deposits       144,655            123         0.34
      Bonus money market deposits       1,203,460          1,158         0.38
      Money market deposits in
       foreign offices                     67,404             74         0.44
      Time deposits                       330,610            526         0.63
      Sweep deposits                    2,098,254          2,172         0.41
      --------------                    ---------          -----         ----
    Total interest-bearing
     deposits                           3,884,534          4,093         0.42
    Short-term borrowings                  49,525             15         0.12
    3.875% convertible senior
     notes                                246,625          3,520         5.66
    Junior subordinated
     debentures                            55,974            893         6.33
    Senior and subordinated notes         558,421          1,417         1.01
    Other long-term debt                    7,831             67         3.39
    --------------------                    -----            ---         ----
    Total interest-bearing
     liabilities                        4,802,910         10,005         0.83
    Portion of noninterest-
     bearing funding sources            6,616,221
    ------------------------            ---------
    Total funding sources              11,419,131         10,005         0.35
    ---------------------              ----------         ------         ----

    Noninterest-bearing funding
     sources:
    ---------------------------
    Demand deposits                     5,998,373
    Other liabilities                     169,293
    SVBFG stockholders' equity          1,183,276
    Noncontrolling interests              333,240
    Portion used to fund
     interest-earning assets           (6,616,221)
    ------------------------           ----------
    Total liabilities and total
     equity                           $12,487,092
    ===========================       ===========
    Net interest income and
     margin                                             $102,676      3.57   %
                                                        ========         ====
    Total deposits                     $9,882,907
                                       ==========
    Average SVBFG stockholders'
     equity as a percentage of
     average assets                                                   9.48   %
                                                                         ====
    Reconciliation to reported
     net interest income:
    --------------------------
    Adjustments for taxable
     equivalent basis                                       (536)
                                                            ----
    Net interest income, as
     reported                                           $102,140
                                                        ========



                                                 Three months ended
                                                 ------------------
                                                 September 30, 2009
                                                 ------------------
    (Dollars in thousands)             Average         Interest       Yield/
    ----------------------             -------         --------
                                       Balance         Income/         Rate
                                       -------                         ----
                                                       Expense
                                                       -------
    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                      $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                                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          1,045,340
    Noncontrolling interests              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                                             $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
                                              ------------------
                                              December 31, 2008
                                              -----------------
    (Dollars in thousands)           Average        Interest     Yield/
    ----------------------           -------        --------
                                     Balance        Income/       Rate
                                     -------                      ----
                                                    Expense
                                                    -------
    Interest-earning assets:
    ------------------------
    Federal funds sold, securities
     purchased under agreements to
     resell and other short-term
     investment securities (1)        $574,295        $2,059     1.43   %
    Investment securities: (2)
      Taxable                        1,244,804        14,789        4.73
      Non-taxable (3)                  112,729         1,754        6.19
    Total loans, net of unearned
     income (4)                      5,226,667        95,662        7.28
    ----------------------------     ---------        ------        ----
    Total interest-earning assets    7,158,495       114,264        6.35
    -----------------------------    ---------       -------        ----
    Cash and due from banks            352,380
    Allowance for loan losses          (62,781)
    Goodwill                             4,092
    Other assets (5)                   756,918
    ----------------                   -------
    Total assets                    $8,209,104
    ============                    ==========

    Funding sources:
    ----------------
    Interest-bearing liabilities:
      NOW deposits                     $53,638           $72     0.53   %
      Regular money market deposits    181,696           600        1.31
      Bonus money market deposits    1,074,162         2,906        1.08
      Money market deposits in
       foreign offices                  46,027           161        1.39
      Time deposits                    447,719         1,255        1.12
      Sweep deposits                   643,226         2,027        1.25
      --------------                   -------         -----        ----
    Total interest-bearing deposits  2,446,468         7,021        1.14
    Short-term borrowings              232,519           789        1.35
    3.875% convertible senior notes    244,513         3,499        5.69
    Junior subordinated debentures      53,807           769        5.69
    Senior and subordinated notes      540,333         4,296        3.16
    Other long-term debt               129,358           866        2.66
    --------------------               -------           ---        ----
    Total interest-bearing
     liabilities                     3,646,998        17,240        1.88
    Portion of noninterest-bearing
     funding sources                 3,511,497
    ------------------------------   ---------
    Total funding sources            7,158,495        17,240        0.96
    ---------------------            ---------        ------        ----

    Noninterest-bearing funding
     sources:
    ---------------------------
    Demand deposits                  3,227,033
    Other liabilities                  202,647
    SVBFG stockholders' equity         802,403
    Noncontrolling interests           330,023
    Portion used to fund interest-
     earning assets                 (3,511,497)
    ------------------------------  ----------
    Total liabilities and total
     equity                         $8,209,104
    ===========================     ==========
    Net interest income and margin                   $97,024     5.39   %
                                                     =======        ====
    Total deposits                  $5,673,501
                                    ==========
    Average SVBFG stockholders'
     equity as a percentage of
     average assets                                              9.77   %
                                                                    ====
    Reconciliation to reported net
     interest income:
    ------------------------------
    Adjustments for taxable
     equivalent basis                                   (614)
                                                        ----
    Net interest income, as
     reported                                        $96,410
                                                     =======



    (1)    Includes average interest-bearing deposits in other financial
           institutions of $169.0 million, $182.7 million and $124.2 million
           for the quarters ended December 31, 2009, September 30, 2009, and
           December 31, 2008, respectively. For the quarters ended December
           31, 2009, September 30, 2009 and December 31, 2008, balance also
           includes $3.5 billion, $3.1 billion and $202.4 million,
           respectively, deposited at the Federal Reserve Bank, earning
           interest at the Federal Funds target rate.
    (2)    Yields on interest-earning investment securities do not give effect
           to changes in fair value that are reflected in other comprehensive
           income.
    (3)    Interest income on non-taxable investment securities is presented
           on a fully taxable equivalent basis using the federal statutory tax
           rate of 35.0 percent for all periods presented.
    (4)    Nonaccrual loans are reflected in the average balances of loans.
    (5)    Average investment securities of $578.0 million, $505.3 million and
           $415.8 million for the quarters ended December 31, 2009, September
           30, 2009, and December 31, 2008, respectively, were classified as
           other assets as they were noninterest-earning assets. These
           investments primarily consisted of non-marketable securities.


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


                                                        Year ended
                                                        ----------
                                                    December 31, 2009
                                                    -----------------
    (Dollars in thousands)                      Average     Interest  Yield/
    ----------------------                      -------     --------
                                                Balance      Income/   Rate
                                                -------                ----
                                                             Expense
                                                             -------
    Interest-earning assets:
    ------------------------
    Federal funds sold, securities purchased
     under agreements to resell and other
     short-term investment securities (1)       $3,333,182     $9,790 0.29   %
    Investment securities: (2)
      Taxable                                    2,179,181     81,536    3.74
      Non-taxable (3)                              103,150      6,298    6.11
    Total loans, net of unearned income (4)      4,699,696    335,806    7.15
    ---------------------------------------      ---------    -------    ----
    Total interest-earning assets               10,315,209    433,430    4.20
    -----------------------------               ----------    -------    ----
    Cash and due from banks                        238,911
    Allowance for loan losses                     (107,512)
    Goodwill                                         1,000
    Other assets (5)                               878,733
    ----------------                               -------
    Total assets                               $11,326,341
    ============                               ===========

    Funding sources:
    ----------------
    Interest-bearing liabilities:
      NOW deposits                                 $42,022       $160 0.38   %
      Regular money market deposits                149,696        748    0.50
      Bonus money market deposits                1,034,152      5,404    0.52
      Money market deposits in foreign offices      62,440        416    0.67
      Time deposits                                355,602      2,445    0.69
      Sweep deposits                             1,860,899     12,173    0.65
      --------------                             ---------     ------    ----
    Total interest-bearing deposits              3,504,811     21,346    0.61
    Short-term borrowings                           46,133         72    0.16
    Zero-coupon convertible subordinated
     notes                                               -          -       -
    3.875% convertible senior notes                245,756     14,043    5.71
    Junior subordinated debentures                  55,948      3,465    6.19
    Senior and subordinated notes                  560,398      9,166    1.64
    Other long-term debt                            61,752        984    1.59
    --------------------                            ------        ---    ----
    Total interest-bearing liabilities           4,474,798     49,076    1.10
    Portion of noninterest-bearing funding
     sources                                     5,840,411
    --------------------------------------       ---------
    Total funding sources                       10,315,209     49,076    0.47
    ---------------------                       ----------     ------    ----

    Noninterest-bearing funding sources:
    ------------------------------------
    Demand deposits                              5,289,288
    Other liabilities                              179,795
    Discount on zero-coupon convertible
     subordinated notes                                  -
    SVBFG stockholders' equity                   1,063,175
    Noncontrolling interests                       319,285
    Portion used to fund interest-earning
     assets                                     (5,840,411)
    -------------------------------------       ----------
    Total liabilities and total equity         $11,326,341
    =====================================      ===========
    Net interest income and margin                           $384,354 3.73   %
                                                             ========    ====
    Total deposits                              $8,794,099
                                                ==========
    Average SVBFG stockholders' equity as a
     percentage of average assets                                     9.39   %
                                                                         ====
    Reconciliation to reported net interest
     income:
    ---------------------------------------
    Adjustments for taxable equivalent basis                   (2,204)
                                                               ------
    Net interest income, as reported                         $382,150
                                                             ========



                                                        Year ended
                                                        ----------
                                                    December 31, 2008
                                                    -----------------
    (Dollars in thousands)                      Average     Interest  Yield/
    ----------------------                      -------     --------
                                                Balance      Income/   Rate
                                                -------                ----
                                                             Expense
                                                             -------
    Interest-earning assets:
    ------------------------
    Federal funds sold, securities purchased
     under agreements to resell and other
     short-term investment securities (1)        $507,365     $12,572 2.48   %
    Investment securities: (2)
      Taxable                                   1,235,179      58,466    4.73
      Non-taxable (3)                             103,337       6,555    6.34
    Total loans, net of unearned income (4)     4,633,048     364,192    7.86
    ---------------------------------------     ---------     -------    ----
    Total interest-earning assets               6,478,929     441,785    6.82
    -----------------------------               ---------     -------    ----
    Cash and due from banks                       279,520
    Allowance for loan losses                     (54,982)
    Goodwill                                        4,092
    Other assets (5)                              710,744
    ----------------                              -------
    Total assets                               $7,418,303
    ============                               ==========

    Funding sources:
    ----------------
    Interest-bearing liabilities:
      NOW deposits                                $46,339        $233 0.50   %
      Regular money market deposits               152,568       2,087    1.37
      Bonus money market deposits                 969,421      11,697    1.21
      Money market deposits in foreign offices     11,570         161    1.39
      Time deposits                               393,963       3,838    0.97
      Sweep deposits                              375,556       5,913    1.57
      --------------                              -------       -----    ----
    Total interest-bearing deposits             1,949,417      23,929    1.23
    Short-term borrowings                         304,896       6,746    2.21
    Zero-coupon convertible subordinated
     notes                                         69,978       2,418    3.46
    3.875% convertible senior notes               179,538      10,138    5.65
    Junior subordinated debentures                 53,093       2,548    4.80
    Senior and subordinated notes                 531,523      20,405    3.84
    Other long-term debt                          146,562       4,712    3.22
    --------------------                          -------       -----    ----
    Total interest-bearing liabilities          3,235,007      70,896    2.19
    Portion of noninterest-bearing funding
     sources                                    3,243,922
    --------------------------------------      ---------
    Total funding sources                       6,478,929      70,896    1.10
    ---------------------                       ---------      ------    ----

    Noninterest-bearing funding sources:
    ------------------------------------
    Demand deposits                             2,946,907
    Other liabilities                             221,348
    Discount on zero-coupon convertible
     subordinated notes                               503
    SVBFG stockholders' equity                    720,851
    Noncontrolling interests                      293,687
    Portion used to fund interest-earning
     assets                                    (3,243,922)
    -------------------------------------      ----------
    Total liabilities and total equity         $7,418,303
    =====================================      ==========
    Net interest income and margin                           $370,889 5.72   %
                                                             ========    ====
    Total deposits                             $4,896,324
                                               ==========
    Average SVBFG stockholders' equity as a
     percentage of average assets                                     9.72   %
                                                                         ====
    Reconciliation to reported net interest
     income:
    ---------------------------------------
    Adjustments for taxable equivalent basis                   (2,294)
                                                               ------
    Net interest income, as reported                         $368,595
                                                             ========



    (1)    Includes average interest-bearing deposits in other financial
           institutions of $176.5 million and $99.1 million for the years
           ended December 31, 2009 and 2008, respectively. For the years
           ended December 31, 2009 and 2008, balance also includes $3.1
           billion and $79.1 million, respectively, deposited at the
           Federal Reserve Bank, earning interest at the Federal Funds
           target rate.
    (2)    Yields on interest-earning investment securities do not give
           effect to changes in fair value that are reflected in other
           comprehensive income.
    (3)    Interest income on non-taxable investment securities is
           presented on a fully taxable equivalent basis using the federal
           statutory tax rate of 35.0 percent for all periods presented.
    (4)    Nonaccrual loans are reflected in the average balances of loans.
    (5)    Average investment securities of $505.5 million and $380.8
           million for the years ended December 31, 2009 and 2008,
           respectively, were classified as other assets as they were
           noninterest-earning assets. These investments primarily
           consisted of non-marketable securities.


Gains (Losses) on Derivative Instruments, Net



                                          Three months ended
                                          ------------------

                               December       September       December
    (Dollars in thousands)        31,            30,             31,
    ----------------------    ---------      ----------      ---------
                                    2009            2009           2008
                                    ----            ----           ----
    Gains (losses) on
     foreign exchange
     forward contracts, net:
      Gains on client foreign
       exchange forward
       contracts, net (1)           $426            $360         $2,466
      Gains (losses) on
       internal foreign
       exchange forward
       contracts, net (2)            406            (128)         3,200
                                     ---            ----          -----
    Total gains (losses) on
     foreign exchange
     forward contracts, net          832             232          5,666

    Change in fair value of
     interest rate swap (3)            -               -         (2,232)
    Gains on covered call
     options, net (4)                  -               -              -

    Equity warrant assets:
      Gains (losses) on
       exercise, net               1,271            (506)           867
      Change in fair value
       (5):
        Cancellations and
         expirations                (871)         (1,170)          (679)
        Other changes in fair
         value                       138             354          1,404
                                     ---             ---          -----
    Total net gains (losses)
     on equity warrant
     assets (6)                      538          (1,322)         1,592
                                     ---          ------          -----

    Total gains (losses) on
     derivative instruments,
     net                          $1,370         $(1,090)        $5,026
                                  ======         =======         ======



                                                   Three months ended
                                                   ------------------
                                                        % Change
                                                        --------
    (Dollars in thousands)                 September 30,      December 31,
    ----------------------                 -------------      ------------
                                                    2009              2008
                                                    ----              ----
    Gains (losses) on foreign exchange
     forward contracts, net:
      Gains on client foreign exchange
       forward contracts, net (1)                18.3   %         (82.7)  %
      Gains (losses) on internal foreign
       exchange forward contracts, net (2)            NM             (87.3)
                                                     ---             -----
    Total gains (losses) on foreign
     exchange forward contracts, net                  NM             (85.3)

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

    Equity warrant assets:
      Gains (losses) on exercise, net                 NM              46.6
      Change in fair value (5):
        Cancellations and expirations              (25.6)             28.3
        Other changes in fair value                (61.0)            (90.2)
                                                   -----             -----
    Total net gains (losses) on equity
     warrant assets (6)                           (140.7)            (66.2)
                                                  ------             -----

    Total gains (losses) on derivative
     instruments, net                                 NM   %      (72.7)  %
                                                     ===            ======



                                                       Year ended
                                                       ----------

                                            December    December
    (Dollars in thousands)                     31,         31,         %
    ----------------------                 ---------   ---------      ---
                                                 2009        2008   Change
                                                 ----        ----   ------
    Gains (losses) on foreign exchange
     forward contracts, net:
      Gains on client foreign exchange
       forward contracts, net (1)              $1,730      $4,233   (59.1)  %
      Gains (losses) on internal foreign
       exchange forward contracts, net (2)     (2,258)      5,185     (143.5)
                                               ------       -----     ------
    Total gains (losses) on foreign
     exchange forward contracts, net             (528)      9,418     (105.6)

    Change in fair value of interest
     rate swap (3)                               (170)     (1,856)     (90.8)
    Gains on covered call options, net
     (4)                                            -         402     (100.0)

    Equity warrant assets:
      Gains (losses) on exercise, net             933       7,188      (87.0)
      Change in fair value (5):
        Cancellations and expirations          (4,515)     (2,574)      75.4
        Other changes in fair value             3,527       5,927      (40.5)
                                                -----       -----      -----
    Total net gains (losses) on equity
     warrant assets (6)                           (55)     10,541     (100.5)
                                                  ---      ------     ------

    Total gains (losses) on derivative
     instruments, net                           $(753)    $18,505  (104.1)  %
                                                =====     =======    =======



    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 December 31, 2009, we held warrants in 1,225 companies,
            compared to 1,250 companies at September 30, 2009 and 1,307
            companies at December 31, 2008.
    (6)     Includes net gains (losses) on equity warrant assets held by
            consolidated investment affiliates. Relevant amounts attributable
            to noncontrolling interests are reflected in the interim
            consolidated statements of income under the caption "Net (Income)
            Loss Attributable to Noncontrolling Interests".


Net (Income) Loss Attributable to Noncontrolling Interests



                                                 Three months ended
                                                 ------------------
                                      December       September      December
    (Dollars in thousands)               31,            30,            31,
    ----------------------                 2009            2009          2008
                                           ----            ----          ----
    Net interest (income) loss (1)         $(11)            $(1)          $22
    Noninterest (income) loss (1)        (6,668)         (5,114)        8,577
    Noninterest expense (1)               3,344           2,872         3,035
    Carried interest (2)                     (3)             (3)           60
                                            ---             ---           ---
    Net (income) loss attributable to
     noncontrolling interests           $(3,338)        $(2,246)      $11,694
                                        =======         =======       =======



                                                        Year ended
                                                        ----------
                                                     December   December
    (Dollars in thousands)                              31,        31,
    ----------------------                                2009       2008
                                                          ----       ----
    Net interest (income) loss (1)                         $18      $(470)
    Noninterest (income) loss (1)                       26,278      6,631
    Noninterest expense (1)                             12,451     11,115
    Carried interest (2)                                (1,377)     1,863
                                                        ------      -----
    Net (income) loss attributable to noncontrolling
     interests                                         $37,370    $19,139
                                                       =======    =======



    (1)     Represents noncontrolling interests share in net interest income,
            noninterest income, and noninterest expense.
    (2)     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
                                             ------------------
                                         December                December
    (Shares in thousands)                   31,   September 30,     31,
    ---------------------               --------- ------------- ---------
                                              2009          2009      2008
                                              ----          ----      ----
    Weighted average common shares
     outstanding-basic                      36,476        33,177    32,810
    Effect of dilutive securities:
         Stock options                         643           495       575
         Restricted stock awards and
          units                                 95             -        66
         Zero-coupon convertible
          subordinated notes (1)                 -             -         -
         Warrants associated with zero-
          coupon convertible
          subordinated notes (1)                 -             -         -
         3.875% convertible senior
          notes (2)                              -             -         -
         Warrants associated with
          3.875% convertible senior
          notes (2)                              -             -         -
         Warrant associated with
          Capital Purchase Program (3)           -             -         -
                                               ---           ---       ---
    Total effect of dilutive
     securities                                738           495       641
                                               ---           ---       ---
    Weighted average common shares
     outstanding-diluted                    37,214        33,672    33,451
                                            ======        ======    ======



                                                       Year ended
                                                       ----------
                                                      December  December
    (Shares in thousands)                                31,       31,
    ---------------------                            --------- ---------
                                                           2009      2008
                                                           ----      ----
    Weighted average common shares outstanding-
     basic                                               33,901    32,425
    Effect of dilutive securities:
         Stock options                                      282       887
         Restricted stock awards and units                    -       114
         Zero-coupon convertible subordinated notes
          (1)                                                 -       589
         Warrants associated with zero-coupon
          convertible subordinated notes (1)                  -         -
         3.875% convertible senior notes (2)                  -         -
         Warrants associated with 3.875% convertible
          senior notes (2)                                    -         -
         Warrant associated with Capital Purchase
          Program (3)                                         -         -
                                                            ---       ---
    Total effect of dilutive securities                     282     1,590
                                                            ---     -----
    Weighted average common shares outstanding-
     diluted                                             34,183    34,015
                                                         ======    ======



    (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
                                       ----------------------
                                     December                  December
    (Dollars in thousands)              31,     September 30,     31,
    ----------------------          ---------   ------------- ---------
                                          2009           2009       2008
                                          ----           ----       ----
    Nonperforming loans and
     assets:
    -----------------------
    Nonperforming loans:
         Loans past due 90 days or
          more still accruing
          interest                      $2,456             $-     $2,330
         Nonaccrual loans               50,227         72,173     84,919
                                        ------         ------     ------
    Total nonperforming loans           52,683         72,173     87,249
    Other real estate owned                220            440      1,250
                                           ---            ---      -----
    Total nonperforming assets         $52,903        $72,613    $88,499
                                       =======        =======    =======

    Nonperforming loans as a
     percentage of total gross
     loans                             1.15   %       1.54   %   1.57   %
    Nonperforming assets as a
     percentage of total assets           0.41           0.58       0.88

    Allowance for loan losses          $72,450        $86,713   $107,396
         As a percentage of total
          gross loans                  1.58   %       1.85   %   1.93   %
         As a percentage of total
          gross nonperforming loans     137.52         120.15     123.09
    Allowance for loan losses
     for total gross
     nonperforming loans                $8,868        $23,356    $25,911
         As a percentage of total
          gross loans                  0.19   %       0.50   %   0.47   %
         As a percentage of total
          gross nonperforming loans      16.83          32.36      29.70
    Allowance for loan losses
     for total gross performing
     loans                             $63,582        $63,357    $81,485
         As a percentage of total
          gross loans                  1.39   %       1.35   %   1.47   %
         As a percentage of total
          gross performing loans          1.40           1.37       1.49
    Reserve for unfunded credit
     commitments (1)                   $13,331        $11,332    $14,698
    Total gross loans                4,582,966      4,692,498  5,551,636
    Total unfunded credit
     commitments                     5,338,726      4,794,463  5,630,486



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


Average Client Investment Funds (1)



                                          Three months ended
                                          ------------------
                                          December September December
    (Dollars in millions)                    31,       30,      31,
    ---------------------                      2009       2009    2008
                                               ----       ----    ----
    Client directed investment assets       $10,190    $10,644 $12,744
    Client investment assets under
     management                               5,911      5,477   6,081
    Sweep money market funds                      -          -   2,213
                                                ---        ---   -----
    Total average client investment funds   $16,101    $16,121 $21,038
                                            =======    ======= =======



                                                           Year ended
                                                           ----------
                                                   December        December
    (Dollars in millions)                             31,             31,
    ---------------------                               2009            2008
                                                        ----            ----
    Client directed investment assets                $10,879         $12,800
    Client investment assets under
     management                                        5,659           6,217
    Sweep money market funds                              56           2,573
                                                         ---           -----
    Total average client investment funds            $16,594         $21,590
                                                     =======         =======



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


Period-end total client investment funds were $15.6 billion at December 31, 2009, compared to $16.4 billion at September 30, 2009 and $18.6 billion at December 31, 2008. The decrease in period-end total client investment funds from September 30, 2009 to December 31, 2009 was 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.

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 31,    December 31,
     amounts)                                         2009          2008
    ---------------------------------------       ----------   -------------
    AS REVISED
    Income Statement
    ----------------
    Interest expense - borrowings                      $8,181         $10,219
    Other noninterest income                            2,782           1,858
    Income tax expense (benefit)                       (2,448)            863
    Net income (loss) attributable to SVBFG            (8,235)            114
    Net income (loss) available to common
     stockholders                                     (11,771)           (593)
    Earnings (loss) per common share - diluted          (0.36)          (0.02)

    Fully Taxable Equivalent
    ------------------------
    Net interest income (fully taxable equivalent
     basis)                                           $92,083         $97,024
    Net interest margin                               3.97   %        5.39   %

    Balance Sheet
    -------------
    Cash and due from banks                        $3,360,199      $1,789,311
    Total assets                                   10,955,015      10,018,280
    Long-term debt                                    964,175         995,423
    Additional paid-in capital                         71,760          66,201
    Retained earnings                                 697,956         709,726

    ADJUSTMENTS DUE TO REVISION OF ERROR
    Income Statement
    ----------------
    Other noninterest income                          $(1,971)        $(3,239)
    Income tax expense (benefit)                         (746)         (1,248)
    Net income (loss) attributable to SVBFG            (1,225)         (1,991)
    Net income (loss) available to common
     stockholders                                      (1,225)         (1,991)
    Earnings (loss) per common share - diluted          (0.04)          (0.06)

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

    ADJUSTMENTS DUE TO ASC 470-20
    Income Statement
    ----------------
    Interest expense - borrowings                         N/A            $525
    Income tax expense (benefit)                          N/A            (208)
    Net income (loss) attributable to SVBFG               N/A            (317)
    Net income (loss) available to common
     stockholders                                         N/A            (317)

    Fully Taxable Equivalent
    ------------------------
    Net interest income (fully taxable equivalent
     basis)                                               N/A           $(525)
    Net interest margin                                   N/A        (0.03)  %

    Balance Sheet
    -------------
    Total assets                                          N/A            $(84)
    Long-term debt                                        N/A          (5,217)
    Additional paid-in capital                            N/A          20,329
    Retained earnings                                     N/A         (15,196)



                                                     Three months ended
                                                     ------------------
    (Dollars in thousands, except per share        September 30,    June 30,
     amounts)                                           2008          2008
    ---------------------------------------       --------------   ---------
    AS REVISED
    Income Statement
    ----------------
    Interest expense - borrowings                         $12,517     $11,695
    Other noninterest income                                1,913       5,759
    Income tax expense (benefit)                           16,711      16,291
    Net income (loss) attributable to SVBFG                25,918      21,014
    Net income (loss) available to common
     stockholders                                          25,918      21,014
    Earnings (loss) per common share - diluted               0.77        0.61

    Fully Taxable Equivalent
    ------------------------
    Net interest income (fully taxable equivalent
     basis)                                               $95,206     $87,377
    Net interest margin                                   5.70   %    5.62   %

    Balance Sheet
    -------------
    Cash and due from banks                              $371,425    $303,057
    Total assets                                        8,070,315   7,310,010
    Long-term debt                                        976,189     969,588
    Additional paid-in capital                             44,359      20,754
    Retained earnings                                     710,321     684,404

    ADJUSTMENTS DUE TO REVISION OF ERROR
    Income Statement
    ----------------
    Other noninterest income                              $(1,309)       $578
    Income tax expense (benefit)                             (531)        215
    Net income (loss) attributable to SVBFG                  (778)        363
    Net income (loss) available to common
     stockholders                                            (778)        363
    Earnings (loss) per common share - diluted              (0.02)       0.01

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

    ADJUSTMENTS DUE TO ASC 470-20
    Income Statement
    ----------------
    Interest expense - borrowings                            $518      $1,068
    Income tax expense (benefit)                             (206)       (424)
    Net income (loss) attributable to SVBFG                  (312)       (644)
    Net income (loss) available to common
     stockholders                                            (312)       (644)

    Fully Taxable Equivalent
    ------------------------
    Net interest income (fully taxable equivalent
     basis)                                                 $(518)    $(1,068)
    Net interest margin                                  (0.03)  %   (0.07)  %

    Balance Sheet
    -------------
    Total assets                                             $(93)      $(102)
    Long-term debt                                         (5,757)     (6,290)
    Additional paid-in capital                             20,543      20,754
    Retained earnings                                     (14,879)    (14,566)



                            Three months ended              Year ended
                            ------------------              ----------
    (Dollars in thousands,
     except per share           March 31,                  December 31,
     amounts)                      2008                        2007
    ----------------------     ----------                 -------------
    AS REVISED
    Income Statement
    ----------------
    Interest expense -
     borrowings                                  $12,536         $54,259
    Other noninterest
     income                                        9,522          26,096
    Income tax expense
     (benefit)                                    18,348          84,581
    Net income (loss)
     attributable to SVBFG                        27,240         120,329
    Net income (loss)
     available to common
     stockholders                                 27,240         120,329
    Earnings (loss) per
     common share - diluted                         0.79            3.28

    Fully Taxable
     Equivalent
    -------------
    Net interest income
     (fully taxable
     equivalent basis)                           $91,283        $377,115
    Net interest margin                          6.27   %        7.19   %

    Balance Sheet
    -------------
    Cash and due from banks                     $301,888        $324,510
    Total assets                               6,897,163       6,692,171
    Long-term debt                               892,516         873,241
    Additional paid-in
     capital                                      13,975          13,167
    Retained earnings                            663,963         669,459

    ADJUSTMENTS DUE TO
     REVISION OF ERROR
    Income Statement
    ----------------
    Other noninterest
     income                                         $187           $(415)
    Income tax expense
     (benefit)                                        65            (171)
    Net income (loss)
     attributable to SVBFG                           122            (244)
    Net income (loss)
     available to common
     stockholders                                    122            (244)
    Earnings (loss) per
     common share - diluted                            -           (0.01)

    Balance Sheet
    -------------
    Cash and due from banks                      $(2,085)          $(889)
    Total assets                                    (122)           (244)
    Retained earnings                               (122)           (244)

    ADJUSTMENTS DUE TO ASC
     470-20
    Income Statement
    ----------------
    Interest expense -
     borrowings                                   $1,303          $5,091
    Income tax expense
     (benefit)                                      (518)         (2,026)
    Net income (loss)
     attributable to SVBFG                          (785)         (3,065)
    Net income (loss)
     available to common
     stockholders                                   (785)         (3,065)

    Fully Taxable
     Equivalent
    -------------
    Net interest income
     (fully taxable
     equivalent basis)                           $(1,303)        $(5,091)
    Net interest margin                         (0.09)  %       (0.10)  %

    Balance Sheet
    -------------
    Total assets                                    $(18)           $(41)
    Long-term debt                                  (673)         (2,013)
    Additional paid-in
     capital                                      13,975          13,167
    Retained earnings                            (13,993)        (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 gains (losses) on investment securities, non-GAAP noninterest expense, and non-GAAP financial ratios) of financial performance. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirement.

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

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:

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 which we effectively do not receive the economic benefit or cost of, 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)

                                            Three months ended
                                            ------------------
    (Dollars in thousands, except share   December  September   December
     amounts)                                31,       30,         31,
    -----------------------------------        2009       2009       2008
                                               ----       ----       ----
    Net income (loss) available to
     common stockholders                     $6,044    $20,608      $(593)
    Impairment of goodwill (1)                    -          -          -
    Loss from cash settlement of
     conversion premium of zero-coupon
     convertible subordinated notes (2)           -          -          -
    Non-cash charge related to TARP
     Repayment (3)                           11,412          -          -
                                             ------        ---        ---
    Non-GAAP net income (loss)
     available to common stockholders       $17,456    $20,608      $(593)
                                            =======    =======      =====

    GAAP earnings (loss) per common
     share - diluted                          $0.16      $0.61     $(0.02)
    Impact of impairment of goodwill (1)          -          -          -
    Impact of loss from cash settlement
     of conversion premium of zero-
     coupon convertible subordinated
     notes (2)                                    -          -          -
    Impact of non-cash charge related
     to TARP Repayment (3)                     0.31          -          -
                                               ----        ---        ---
    Non-GAAP earnings (loss) per common
     share - diluted                          $0.47      $0.61     $(0.02)
                                              =====      =====     ======
    Weighted average diluted common
     shares outstanding                  37,214,321 33,672,491 33,450,626



                                                             Year ended
                                                             ----------
                                                     December        December
    (Dollars in thousands, except share amounts)        31,             31,
    --------------------------------------------          2009            2008
                                                          ----            ----
    Net income (loss) available to common
     stockholders                                      $22,674         $73,579
    Impairment of goodwill (1)                           4,092               -
    Loss from cash settlement of conversion premium
     of zero-coupon convertible subordinated notes
     (2)                                                     -           3,858
    Non-cash charge related to TARP Repayment (3)       11,412               -
                                                        ------             ---
    Non-GAAP net income (loss) available to common
     stockholders                                      $38,178         $77,437
                                                       =======         =======

    GAAP earnings (loss) per common share - diluted      $0.66           $2.16
    Impact of impairment of goodwill (1)                  0.12               -
    Impact of loss from cash settlement of
     conversion premium of zero-coupon convertible
     subordinated notes (2)                                  -            0.12
    Impact of non-cash charge related to TARP
     Repayment (3)                                        0.34               -
                                                          ----             ---
    Non-GAAP earnings (loss) per common share -
     diluted                                             $1.12           $2.28
                                                         =====           =====
    Weighted average diluted common shares
     outstanding                                    34,182,771      34,014,581



    (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.
    (3)    Non-tax deductible charge related to TARP repayment recognized in
           the fourth quarter of 2009.



                                                 Three months ended
                                                 ------------------
    Non-GAAP noninterest income, net of          December September December
     noncontrolling interests                       31,       30,      31,
    (Dollars in thousands)                            2009      2009     2008
    ----------------------                            ----      ----     ----
    GAAP noninterest income                        $40,742   $34,307  $25,660
    Less: income (losses) attributable to
     noncontrolling interests, including carried
     interest                                        6,671     5,117   (8,637)
                                                     -----     -----   ------
    Non-GAAP noninterest income, net of
     noncontrolling interests                      $34,071   $29,190  $34,297
                                                   =======   =======  =======



                                                         Year ended
                                                         ----------
    Non-GAAP noninterest income, net of          December        December
     noncontrolling interests                       31,             31,
    (Dollars in thousands)                            2009            2008
    ----------------------                            ----            ----
    GAAP noninterest income                        $97,743        $152,365
    Less: income (losses) attributable to
     noncontrolling interests, including carried
     interest                                      (24,901)         (8,494)
                                                   -------          ------
    Non-GAAP noninterest income, net of
     noncontrolling interests                     $122,644        $160,859
                                                  ========        ========



                                                     Three months ended
                                                     ------------------
    Non-GAAP net gains (losses) on investment        December    September
     securities, net of noncontrolling interests        31,         30,
    (Dollars in thousands)                                2009        2009
    ----------------------                                ----        ----
    GAAP net gains (losses) on investment securities    $6,681      $3,905
    Less: gains (losses) on investment securities
     attributable to noncontrolling interests,
     including carried interest                          5,853       4,880
                                                         -----       -----
    Non-GAAP net gains (losses) on investment
     securities, net of noncontrolling interests          $828       $(975)
                                                          ====       =====



                                          Three months ended  Year ended
                                          ------------------  ----------
    Non-GAAP net gains (losses) on
     investment securities, net of             December        December
     noncontrolling interests                     31,             31,
    (Dollars in thousands)                              2008        2009
    ----------------------                              ----        ----
    GAAP net gains (losses) on investment
     securities                                      $(9,828)   $(31,209)
    Less: gains (losses) on investment
     securities attributable to
     noncontrolling interests, including
     carried interest                                 (8,702)    (26,638)
                                                      ------     -------
    Non-GAAP net gains (losses) on
     investment securities, net of
     noncontrolling interests                        $(1,126)    $(4,571)
                                                     =======     =======



                                                          Year ended
                                                          ----------
    Non-GAAP net gains (losses) on investment securities,   December
     net of noncontrolling interests                          31,
    (Dollars in thousands)                                            2008
    ----------------------                                            ----
    GAAP net gains (losses) on investment securities              $(14,777)
    Less: gains (losses) on investment securities
     attributable to noncontrolling interests, including
     carried interest                                               (8,929)
                                                                    ------
    Non-GAAP net gains (losses) on investment securities,
     net of noncontrolling interests                               $(5,848)
                                                                   =======



                                              Three months ended
                                              ------------------
    Non-GAAP operating efficiency ratio,    December   September December
     net of noncontrolling interests           31,        30,       31,
    (Dollars in thousands, except ratios)        2009       2009      2008
    -------------------------------------        ----       ----      ----
    GAAP noninterest expense                  $87,907    $79,807   $61,830
    Less: amounts attributable to
     noncontrolling interests                   3,344      2,872     3,035
    Less: loss from cash settlement of
     conversion premium of zero-coupon
     convertible subordinated notes                 -          -         -
    Less: impairment of goodwill                    -          -         -
                                                  ---        ---       ---
    Non-GAAP noninterest expense, net of
     noncontrolling interests                 $84,563    $76,935   $58,795
                                              =======    =======   =======

    GAAP taxable equivalent net interest
     income                                  $102,676    $97,360   $97,024
    Less: income (losses) attributable to
     noncontrolling interests                      11          1       (22)
                                                  ---        ---       ---
    Non-GAAP taxable equivalent net
     interest income, net of noncontrolling
     interests                                102,665     97,359    97,046

    Non-GAAP noninterest income, net of
     noncontrolling interests                  34,071     29,190    34,297
                                               ------     ------    ------
    Non-GAAP taxable equivalent revenue,
     net of noncontrolling interests         $136,736   $126,549  $131,343
                                             ========   ========  ========

    Non-GAAP operating efficiency ratio      61.84   %  60.79   % 44.76   %
                                                =====      =====     =====



                                                        Year ended
                                                        ----------
    Non-GAAP operating efficiency ratio, net of      December   December
     noncontrolling interests                           31,        31,
    (Dollars in thousands, except ratios)                 2009       2008
    -------------------------------------                 ----       ----
    GAAP noninterest expense                          $343,866   $312,887
    Less: amounts attributable to noncontrolling
     interests                                          12,451     11,115
    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                         $327,323   $297,914
                                                      ========   ========

    GAAP taxable equivalent net interest income       $384,354   $370,889
    Less: income (losses) attributable to
     noncontrolling interests                              (18)       470
                                                           ---        ---
    Non-GAAP taxable equivalent net interest income,
     net of noncontrolling interests                   384,372    370,419

    Non-GAAP noninterest income, net of
     noncontrolling interests                          122,644    160,859
                                                       -------    -------
    Non-GAAP taxable equivalent revenue, net of
     noncontrolling interests                         $507,016   $531,278
                                                      ========   ========

    Non-GAAP operating efficiency ratio               64.56   %  56.07   %
                                                         =====      =====



    Non-GAAP non-marketable securities, net December  September  December
     of noncontrolling interests               31,       30,        31,
    (Dollars in thousands)                       2009       2009      2008
    ----------------------                       ----       ----      ----
    GAAP non-marketable securities           $553,530   $507,880  $467,206
    Less: noncontrolling interests in non-
     marketable securities                    320,523    296,011   298,140
                                              -------    -------   -------
    Non-GAAP non-marketable securities, net
     of noncontrolling interests             $233,007   $211,869  $169,066
                                             ========   ========  ========



    Non-GAAP tangible common          December                    December
     equity and tangible assets          31,     September 30,       31,
    (Dollars in thousands, except
     ratios)                               2009           2009         2008
    -----------------------------          ----           ----         ----
    GAAP SVBFG stockholders' equity  $1,128,343     $1,067,377     $991,356
    Less:
        Preferred stock                       -        223,009      221,185
        Goodwill                              -              -        4,092
        Intangible assets                   665            697        1,087
                                            ---            ---        -----
    Tangible common equity           $1,127,678       $843,671     $764,992
                                     ==========       ========     ========

    GAAP Total assets               $12,841,399    $12,538,603  $10,018,280
    Less:
        Goodwill                              -              -        4,092
        Intangible assets                   665            697        1,087
                                            ---            ---        -----
    Tangible assets                 $12,840,734    $12,537,906  $10,013,101
                                    ===========    ===========  ===========

    Risk-weighted assets             $7,494,558     $7,381,820   $8,220,447

    Tangible common equity to
     tangible assets                    8.78   %       6.73   %     7.64   %
    Tangible common equity to risk-
     weighted assets                      15.05          11.43         9.31



SOURCE SVB Financial Group

Copyright (C) 2010 PR Newswire. All rights reserved