SVB FINANCIAL GROUP - FORM 8-K - EX-99.1 - RELEASE, DATED JANUARY 20, 2011

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Exhibit 99.1

LOGO

3003 Tasman Drive, Santa Clara, CA 95054

www.svb.com


For release at 1:00 P.M. (Pacific Time)		Contact:
January 20, 2011		Meghan O’Leary
		Investor Relations
NASDAQ: SIVB		(408) 654-6364

SVB FINANCIAL GROUP ANNOUNCES 2010 FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS

SANTA CLARA, Calif. — January 20, 2011 — SVB Financial Group (NASDAQ: SIVB) today announced financial results for the fourth quarter and year ended December 31, 2010.

Consolidated net income available to common stockholders for the fourth quarter of 2010 was $17.5 million, or $0.41 per diluted common share, compared to $37.8 million, or $0.89 per diluted common share, for the third quarter of 2010, and $6.0 million, or $0.16 per diluted common share, for the fourth quarter of 2009. Consolidated net income for the third quarter of 2010 included pre-tax gains of $23.6 million from the sale of certain agency-backed available-for-sale securities. 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 these items, net income for the third quarter of 2010 and fourth quarter of 2009 was $23.6 million, or $0.55 per diluted common share, and $17.5 million, or $0.47 per diluted common share, respectively. (See non-GAAP reconciliation under section “Use of Non-GAAP Financial Measures” provided below.)

“Our fourth quarter was marked by outstanding loan growth, high credit quality, and continued growth in deposits,” said Ken Wilcox, CEO of SVB Financial Group. “Our clients are increasingly optimistic about their improving business conditions and our results clearly reflect that optimism. While the slow pace of the broader economic recovery remained a challenge during the quarter and is still a concern, we made the most of the significant opportunities before us. We continued to win new clients and increase our market share. We also invested significantly in people and infrastructure to support our long-term growth and, in some cases, accelerated our planned investments. These investments will ensure we have the right senior teams in place to drive our global expansion, particularly in the UK and China, as well as a strong and flexible information technology infrastructure to support our future growth.”

Highlights of our fourth quarter 2010 results (compared to third quarter 2010, unless otherwise noted) included:

•

An increase in average loan balances of $508.6 million, or 11.3 percent, to $5.0 billion for the fourth quarter of 2010, compared to $4.5 billion for the third quarter of 2010. Period-end loan balances increased by $662.5 million, or 13.6 percent, to $5.5 billion at December 31, 2010, compared to $4.9 billion at September 30, 2010.

•

Provision for loan losses was $15.5 million for the fourth quarter of 2010, primarily the result of the increase in period-end loan balances and net charge-offs of $7.2 million.

•

Increase in average deposit balances of $1.4 billion, or 11.6 percent, to $13.3 billion for the fourth quarter of 2010, compared to $11.9 billion for the third quarter of 2010.

•

An increase in average available-for-sale securities of $1.6 billion, or 30.3 percent, primarily due to our strategy of investing excess cash resulting from our continued deposit growth.

•

Loan interest income increased by $8.6 million, which was offset by lower interest income from our available-for-sale securities due to the sales of $492.9 million in the third quarter of 2010 and paydowns being re-invested in lower-yielding securities, as well as an increase in borrowing expense due to the full-quarter impact of the issuance of $350 million in 5.375% senior notes. As a result, our net interest income decreased by $1.8 million, or 1.7 percent.

•

An increase in noninterest expense of $11.7 million, or 11.3 percent, primarily due to an increase in professional services expense due to the acceleration of spending for certain infrastructure projects and related legal fees, as well as an increase in compensation and benefits expense primarily due to increased incentive compensation related expenses.

Consolidated net income available to common stockholders for the year ended December 31, 2010 was $95.0 million, or $2.24 per diluted common share, compared to $22.7 million, or $0.66 per diluted common share, for 2009. Consolidated net income for the year ended December 31, 2010 included pre-tax gains of $24.7 million from the sale of certain agency and non-agency backed available-for-sale securities in the second and third quarters of 2010. Excluding these gains, net income for the year ended December 31, 2010 was $80.1 million, or $1.89 per diluted common share. (See non-GAAP reconciliation under section “Use of Non-GAAP Financial Measures” provided below.)

Fourth Quarter 2010 Summary


	Three months ended															Year ended
										% change from
(Dollars in millions, except share data and ratios)	December 31, 2010			September 30, 2010			December 31, 2009			September 30, 2010			December 31, 2009			December 31, 2010			December 31, 2009			% change
Income statement:
Diluted earnings per common share	$	0.41		$	0.89		$	0.16			(53.9	)%		156.3	%	$	2.24		$	0.66			NM	%
Net income attributable to SVBFG		17.5			37.8			20.7			(53.7	)		(15.5	)		95.0			48.0			97.9
Net income available to common stockholders		17.5			37.8			6.0			(53.7	)		191.7			95.0			22.7			NM
Net interest income		104.5			106.3			102.1			(1.7	)		2.4			418.1			382.2			9.4
Provision for loan losses		15.5			11.0			17.3			40.9			(10.4	)		44.6			90.2			(50.6	)
Noninterest income		71.9			86.2			40.7			(16.6	)		76.7			247.5			97.7			153.3
Noninterest expense		115.9			104.2			87.9			11.2			31.9			422.8			343.9			22.9
Non-GAAP net income available to common stockholders (1)		17.5			23.6			17.5			(25.8	)		—			80.1			38.2			109.7
Non-GAAP diluted earnings per common share (1)		0.41			0.55			0.47			(25.5	)		(12.8	)		1.89			1.12			68.8
Non-GAAP noninterest income, net of noncontrolling interests and excluding gains on sales of available-for-sale securities (1)		52.1			45.0			34.1			15.8			52.8			168.6			122.6			37.5
Non-GAAP noninterest expense, net of noncontrolling interests (1)		112.6			101.2			84.6			11.3			33.1			410.5			327.3			25.4

Fully taxable equivalent:
Net interest income (2)	$	105.0		$	106.9		$	102.7			(1.8	)%		2.2	%	$	420.2		$	384.4			9.3	%
Net interest margin		2.74	%		3.14	%		3.57	%		(12.7	)		(23.2	)		3.08	%		3.73	%		(17.4	)

Shares outstanding:
Common		42,268,201			41,964,764			41,338,389			0.7	%		2.2	%		42,268,201			41,338,389			2.2	%
Basic weighted average		42,067,453			41,930,456			36,475,822			0.3			15.3			41,773,652			33,900,913			23.2
Diluted weighted average		42,802,817			42,512,515			37,214,151			0.7			15.0			42,478,340			34,182,728			24.3

Balance sheet:
Average total assets	$	16,526.2		$	14,755.6		$	12,487.1			12.0	%		32.3	%	$	14,858.2		$	11,326.3			31.2	%
Average loans, net of unearned income		5,007.1			4,498.5			4,368.0			11.3			14.6			4,435.9			4,699.7			(5.6	)
Average available-for-sale securities		6,878.1			5,279.0			3,295.3			30.3			108.7			5,347.3			2,282.3			134.3
Average noninterest-bearing demand deposits		8,016.1			6,925.0			5,998.4			15.8			33.6			7,217.0			5,289.3			36.4
Average interest-bearing deposits		5,280.9			4,994.2			3,884.5			5.7			35.9			4,811.4			3,504.8			37.3
Average total deposits		13,297.0			11,919.2			9,882.9			11.6			34.5			12,028.3			8,794.1			36.8
Average short-term borrowings		56.4			52.9			49.5			6.6			13.9			50.0			46.1			8.5
Average long-term debt		1,225.2			918.8			868.9			33.3			41.0			968.4			923.9			4.8
Period-end total assets		17,527.8			15,660.1			12,841.4			11.9			36.5			17,527.8			12,841.4			36.5
Period-end loans, net of unearned income		5,521.7			4,859.2			4,548.1			13.6			21.4			5,521.7			4,548.1			21.4
Period-end available-for-sale securities		7,918.0			6,003.2			3,938.2			31.9			101.1			7,918.0			3,938.2			101.1
Period-end non-marketable securities		721.5			656.1			553.5			10.0			30.4			721.5			553.5			30.4
Period-end noninterest-bearing demand deposits		9,011.5			7,449.1			6,299.0			21.0			43.1			9,011.5			6,299.0			43.1
Period-end interest-bearing deposits		5,325.4			4,965.9			4,032.9			7.2			32.0			5,325.4			4,032.9			32.0
Period-end total deposits		14,336.9			12,414.9			10,331.9			15.5			38.8			14,336.9			10,331.9			38.8

Off-balance sheet:
Average total client investment funds	$	16,298.4		$	15,973.7		$	16,101.1			2.0	%		1.2	%	$	15,711.1		$	16,593.6			(5.3	)%
Period-end total client investment funds		16,893.7			16,079.6			15,597.8			5.1			8.3			16,893.7			15,597.8			8.3
Total unfunded credit commitments		6,270.5			5,892.1			5,338.7			6.4			17.5			6,270.5			5,338.7			17.5

Earnings ratios:
Return on average assets (annualized) (3)		0.42	%		1.02	%		0.66	%		(58.8	)%		(36.4	)%		0.64	%		0.42	%		52.4	%
Return on average common SVBFG stockholders’ equity (annualized) (4)		5.37			11.84			2.44			(54.6	)		120.1			7.72			2.68			188.1

Asset quality ratios:
Allowance for loan losses as a percentage of total gross loans		1.48	%		1.52	%		1.58	%		(2.6	)%		(6.3	)%		1.48	%		1.58	%		(6.3	)%
Gross charge-offs as a percentage of average total gross loans (annualized)		0.84			1.08			2.98			(22.2	)		(71.8	)		1.15			3.03			(62.0	)
Net charge-offs as a percentage of average total gross loans (annualized)		0.57			0.73			2.84			(21.9	)		(79.9	)		0.77			2.64			(70.8	)

Other ratios:
Total risk-based capital ratio		17.35	%		19.10	%		19.94	%		(9.2	)%		(13.0	)%		17.35	%		19.94	%		(13.0	)%
Operating efficiency ratio (5)		65.52			53.95			61.29			21.4			6.9			63.32			71.33			(11.2	)
Period-end loans, net of unearned income, to deposits		38.51			39.14			44.02			(1.6	)		(12.5	)		38.51			44.02			(12.5	)
Average loans, net of unearned income, to deposits		37.66			37.74			44.20			(0.2	)		(14.8	)		36.88			53.44			(31.0	)

Non-GAAP ratios:
Tangible common equity to tangible assets (1)		7.27	%		8.10	%		8.78	%		(10.2	)%		(17.2	)%		7.27	%		8.78	%		(17.2	)%
Tangible common equity to risk-weighted assets (1)		13.54			15.17			15.05			(10.7	)		(10.0	)		13.54			15.05			(10.0	)
Non-GAAP return on average assets (annualized) (1) (6)		0.42			0.63			0.66			(33.3	)		(36.4	)		0.54			0.46			17.4
Non-GAAP return on average common SVBFG stockholders’ equity (annualized) (1) (7)		5.37			7.39			7.05			(27.3	)		(23.8	)		6.51			4.51			44.3
Non-GAAP operating efficiency ratio(1)		71.67			66.65			61.84			7.5			15.9			69.71			64.56			8.0

Other statistics:
Period-end SVB prime lending rate		4.00	%		4.00	%		4.00	%		—	%		—	%		4.00	%		4.00	%		—	%
Average SVB prime lending rate		4.00			4.00			4.00			—			—			4.00			4.00			—
Average full-time equivalent employees		1,353			1,321			1,256			2.4			7.7			1,305			1,259			3.7
Period-end full-time equivalent employees		1,357			1,341			1,258			1.2			7.9			1,357			1,258			7.9

NM—Not meaningful.

(1)

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. 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 for each of the quarters ended December 31, 2010, September 30, 2010 and December 31, 2009. The taxable equivalent adjustments were $2.1 million and $2.2 million for the years ended December 31, 2010 and 2009, respectively.

(3)	Ratio represents annualized consolidated net income attributable to SVB Financial Group (“SVBFG”) divided by quarterly and annual average assets.

(4)	Ratio represents annualized consolidated net income available to common stockholders divided by quarterly 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 goodwill impairment charge of $4.1 million recorded in the first quarter of 2009 and pre-tax gains of $23.6 million and $1.1 million from the sale of certain agency and non-agency backed available-for-sale securities in the third quarter and second quarter of 2010, respectively) divided by quarterly and annual average assets. (See reconciliation of non-GAAP consolidated net income under section “Use of Non-GAAP Financial Measures” provided below.)

(7)

Ratio represents non-GAAP annualized consolidated net income available to common stockholders (excluding a non-tax deductible charge of $11.4 million related to CPP 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 pre-tax gains of $23.6 million and $1.1 million from the sale of certain agency and non-agency backed available-for-sale securities in the third quarter and second quarter of 2010, respectively) divided by quarterly and annual average SVBFG stockholders’ equity (excluding preferred equity). (See reconciliation of non-GAAP consolidated net income under section “Use of Non-GAAP Financial Measures” provided below.)

Net Interest Income and Margin

Net interest income, on a fully taxable equivalent basis, was $105.0 million for the fourth quarter of 2010, compared to $106.9 million for the third quarter of 2010 and $102.7 million for the fourth quarter of 2009. The following table provides a summary of changes in interest income and interest expense attributable to both volume and rate changes from the third quarter to the fourth quarter of 2010. 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:


	Q4’10 compared to Q3’10
	Increase (decrease) due to change in
(Dollars in thousands)	Volume			Rate			Total
Interest income:
Short-term investment securities	$	(299	)	$	96		$	(203	)
Available-for-sale securities		8,267			(14,724	)		(6,457	)
Loans		9,076			(468	)		8,608

Increase (decrease) in interest income, net		17,044			(15,096	)		1,948

Interest expense:
Deposits		199			(519	)		(320	)
Short-term borrowings		2			(1	)		1
Long-term debt		4,235			(142	)		4,093

Increase (decrease) in interest expense, net		4,436			(662	)		3,774

Increase (decrease) in net interest income	$	12,608		$	(14,434	)	$	(1,826	)

The decrease in net interest income, on a fully taxable equivalent basis, from the third quarter to the fourth quarter of 2010, was primarily attributable to the following:

•

A decrease in interest income of $6.5 million from our available-for-sale securities portfolio, primarily due to low investment yields on new purchases in the current rate environment, the full impact of re-invested proceeds from higher-yielding securities sold in the third quarter of 2010 and re-investment of paydowns in the fourth quarter of 2010. This decrease was partially offset by an increase in interest income from an increase in average balances of $1.6 billion as a result of our continued deposit growth.

•

An increase of $4.1 million in interest expense for the fourth quarter of 2010 from our long-term debt primarily related to the full quarter impact of our issuance of $350 million of 5.375% senior notes in September 2010. We intend to use approximately $250 million of the net proceeds from the sale of the notes to repay our 3.875% convertible senior notes when they become due on April 15, 2011.

•

An increase in interest income of $8.6 million from our loan portfolio mainly attributable to growth in average loan balances of $508.6 million.

Net interest margin, on a fully taxable equivalent basis, was 2.74 percent for the fourth quarter of 2010, compared to 3.14 percent for the third quarter of 2010 and 3.57 percent for the fourth quarter of 2009. The decrease from the third quarter to the fourth quarter of 2010 was primarily due to sales in the third quarter of 2010 and paydowns of available-for-sale securities in the third and fourth quarters of 2010 being re-invested in lower-yielding securities and the full quarter impact of our issuance of $350 million of 5.375% senior notes in September 2010. Net interest margin was also impacted by the significant growth of our deposits, which were invested in lower-yielding available-for-sale securities due to the current low rate environment.

Net interest margin, on a fully taxable equivalent basis, was 3.08 percent and 3.73 percent for the years ended December 31, 2010 and 2009, respectively. While our net interest margin declined year-over-year, net interest income, on a fully taxable equivalent basis, increased by $35.8 million to $420.2 million for the year ended December 31, 2010, compared to $384.4 million for the comparable 2009 period, primarily due to the growth in deposits and the resulting investment of excess cash.

For the fourth quarter of 2010, 73.5 percent, or $3.9 billion, of our average 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 70.8 percent, or $3.3 billion, for the third quarter of 2010 and 70.4 percent, or $3.1 billion, for the fourth quarter of 2009. For the fourth quarter of 2010, average variable-rate available-for-sale securities were $2.5 billion, or 36.7 percent of our available-for-sale securities portfolio compared to $1.2 billion, or 22.1 percent in the third quarter of 2010. These securities have variable coupons that are indexed to and change with movements in the one-month Libor rate.

Investment Securities

Our investment securities portfolio consists of both an available-for-sale securities portfolio, which represents interest-earning investment securities, and a non-marketable securities portfolio, which primarily represents investments managed as part of our funds management business.

Available-for-Sale Securities

Our available-for-sale securities portfolio is a fixed income investment portfolio that is managed to maximize portfolio yield over the long-term in a manner consistent with our liquidity, credit diversification and asset/liability strategies.

Average available-for-sale securities increased by $1.6 billion to $6.9 billion for the fourth quarter of 2010, compared to $5.3 billion for the third quarter of 2010 and $3.3 billion for the fourth quarter of 2009. Period-end available-for-sale securities were $7.9 billion at December 31, 2010, compared to $6.0 billion at September 30, 2010 and $3.9 billion at December 31, 2009. The period-end increase of $1.9 billion from September 30, 2010 to December 31, 2010 was primarily due to purchases of new investments of $2.6 billion in the fourth quarter of 2010, partially offset by paydowns of $625.0 million in securities. The purchases of new investments of $2.6 billion in the fourth quarter of 2010 were comprised of $1.4 billion in U.S. agency debentures at an average yield of approximately 1.33 percent, $1.1 billion in variable rate agency-issued collateralized mortgage obligations at an average yield of approximately 0.65 percent and $177.1 million in agency-issued mortgage-backed securities at an average yield of approximately 2.87 percent.

Non-Marketable Securities

Our non-marketable securities portfolio primarily represents investments managed by SVB Capital, investments in sponsored debt funds and other strategic investments as part of our investment funds management business. They include funds of funds, co-investment funds and debt funds, as well as direct equity investments in portfolio companies and fund investments.

Period-end non-marketable securities were $721.5 million ($298.1 million net of noncontrolling interests) as of December 31, 2010, compared to $656.1 million ($280.1 million net of noncontrolling interests) as of September 30, 2010 and $553.5 million ($233.0 million net of noncontrolling interests) as of December 31, 2009. The increase from the third quarter to the fourth quarter of 2010 was primarily attributable to additional capital calls for fund investments in the fourth quarter of 2010, as well as gains from our managed funds of funds and managed co-investment funds. 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 $5.0 billion for the fourth quarter of 2010, compared to $4.5 billion for the third quarter of 2010 and $4.4 billion for the fourth quarter of 2009. Period-end loans, net of unearned income, were $5.5 billion at December 31, 2010, compared to $4.9 billion at September 30, 2010 and $4.5 billion at December 31, 2009. The increase in loan balances from the third quarter to the fourth quarter of 2010 came from all our client industry segments, with particularly strong growth in loans to venture capital/private equity and software industry clients. During the fourth quarter of 2010, we added 428 new loan clients, resulting in $575.5 million in new funded loans. This compares to 423 new loan clients in the third quarter of 2010, resulting in $534.8 million in new funded loans.

Our nonperforming loans totaled $39.5 million at December 31, 2010, compared to $45.0 million at September 30, 2010 and $52.7 million at December 31, 2009. The allowance for loan losses related to impaired loans was $6.9 million, $6.5 million and $8.9 million at December 31, 2010, September 30, 2010 and December 31, 2009, respectively.

The following table provides a summary of loans (individually or in the aggregate) to any single client, equal to or greater than $20 million, by industry sector at December 31, 2010, September 30, 2010 and December 31, 2009:


	Loans (individually or in the aggregate) to any single client, equal to or greater than $20 million at
(Dollars in thousands, except ratios and client data)	December 31, 2010			September 30, 2010			December 31, 2009
Commercial loans:
Software	$	329,297		$	346,149		$	241,118
Hardware		85,760			55,251			114,840
Clean technology		37,920			40,000			20,114
Venture capital/private equity		409,398			307,200			371,728
Life science		189,565			169,485			45,667
Premium wine (1)		6,500			12,972			14,915
Other		134,602			57,922			20,125

Total commercial loans		1,193,042			988,979			828,507

Real estate secured loans:
Premium wine (1)		47,314			60,850			61,871
Consumer loans (2)		—			20,051			40,064

Total real estate secured loans		47,314			80,901			101,935

Consumer loans (2)		39,200			40,000			47,115

Total	$	1,279,556		$	1,109,880		$	977,557


Loans individually equal to or greater than $20 million as a percentage of total gross loans		23.0	%		22.7	%		21.3	%

Total clients with loans individually equal to or greater than $20 million		38			36			33

Loans individually equal to or greater than $20 million on nonaccrual status	$	—		$	20,051		$	20,407

Loans individually equal to or greater than $20 million on nonaccrual status as a percentage of total loans greater than $20 million		—	%		1.8	%		2.1	%

(1)	Premium Wine clients can have loan balances included in both commercial loans and real estate secured loans, the combination of which are equal to or greater than $20 million.

(2)	Consumer loan clients can have loan balances included in both real estate secured loans and other consumer loans, the combination of which are equal to or greater than $20 million.

The increase in balances for loan clients individually equal to or greater than $20 million from September 30, 2010 to December 31, 2010 came primarily from loans to venture capital/private equity clients for capital calls.

Credit Quality

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


	Three months ended									Year ended
(Dollars in thousands, except ratios)	December 31, 2010			September 30, 2010			December 31, 2009			December 31, 2010			December 31, 2009

Allowance for loan losses, beginning balance	$	74,369		$	71,789		$	86,713		$	72,450		$	107,396
Provision for loan losses		15,504			10,971			17,291			44,628			90,180
Gross loan charge-offs		(10,637	)		(12,289	)		(33,106	)		(51,239	)		(143,570	)
Loan recoveries		3,391			3,898			1,552			16,788			18,444

Allowance for loan losses, ending balance	$	82,627		$	74,369		$	72,450		$	82,627		$	72,450

Provision as a percentage of total gross loans (annualized)		1.10	%		0.89	%		1.50	%		0.80	%		1.97	%
Gross loan charge-offs as a percentage of average total gross loans (annualized)		0.84			1.08			2.98			1.15			3.03
Net loan charge-offs as a percentage of average total gross loans (annualized)		0.57			0.73			2.84			0.77			2.64
Allowance for loan losses as a percentage of total gross loans		1.48			1.52			1.58			1.48			1.58
Total gross loans at period-end	$	5,567,205		$	4,900,129		$	4,582,966		$	5,567,205		$	4,582,966
Average total gross loans		5,048,428			4,534,485			4,402,909			4,471,706			4,739,210

Our provision for loan losses was $15.5 million for the fourth quarter of 2010, an increase of $4.5 million from the third quarter of 2010. Gross loan charge-offs of $10.6 million for the fourth quarter of 2010 were primarily from our software client portfolio. Gross loan charge-offs included $2.5 million of loans that were reserved for as impaired loans at September 30, 2010. Loan recoveries of $3.4 million for the fourth quarter of 2010 were primarily from our software and hardware client portfolios.

Our allowance for loan losses increased by $8.2 million to $82.6 million at December 31, 2010 compared to $74.4 million at September 30, 2010. The $8.2 million increase was primarily due to increases in loan balances. Our allowance for loan losses as a percentage of total gross loans decreased from 1.52 percent at September 30, 2010 to 1.48 percent at December 31, 2010, primarily due to a reduction in the reserve for our performing loans. Our allowance for loan losses for total gross performing loans as a percentage of total gross performing loans was 1.37 percent at December 31, 2010, compared to 1.40 percent at September 30, 2010.

Deposits

Average deposits were $13.3 billion for the fourth quarter of 2010, compared to $11.9 billion for the third quarter of 2010 and $9.9 billion for the fourth quarter of 2009. Period-end deposits were $14.3 billion at December 31, 2010, compared to $12.4 billion at September 30, 2010 and $10.3 billion at December 31, 2009. The period-end increase from September 30, 2010 to December 31, 2010 came primarily from increases in our noninterest-bearing demand deposits, which increased by $1.6 billion to $9.0 billion. The overall increase in our deposit balances was primarily due to the continued lack of attractive market investment opportunities for our deposit clients.

Noninterest Income

Noninterest income was $71.9 million for the fourth quarter of 2010, compared to $86.2 million for the third quarter of 2010 and $40.7 million for the fourth quarter of 2009. The decrease of $14.3 million in noninterest income from the third quarter to the fourth quarter of 2010 was primarily driven by the following factors:

•

Net gains on investment securities of $25.9 million for the fourth quarter of 2010, compared to $46.6 million for the third quarter of 2010. The net gains of $25.9 million for the fourth quarter of 2010 were primarily due to $10.2 million of gains from our managed co-investment funds primarily related to valuation adjustments and $11.0 million of realized and unrealized gains from our managed funds of funds related to distributions and valuation adjustments.

As of December 31, 2010, we held investments, either directly or through ten of our managed investment funds, in 450 venture capital and private equity funds, 66 companies and five debt funds.

The following tables provide a summary of net gains on investment securities, net of noncontrolling interests, for the three months ended December 31, 2010 and September 30, 2010, respectively:


	Three months ended December 31, 2010
(Dollars in thousands)	Managed Co- Investment Funds		Managed Funds Of Funds		Debt Funds		Available- For-Sale Securities		Strategic and Other Investments		Total

Total gains on investment securities, net	$	10,175	$	11,023	$	2,369	$	350	$	2,023	$	25,940
Less: income attributable to noncontrolling interests, including carried interest		9,678		9,727		22		—		—		19,427

Non-GAAP net gains on investment securities, net of noncontrolling interests (1)	$	497	$	1,296	$	2,347	$	350	$	2,023	$	6,513


	Three months ended September 30, 2010
(Dollars in thousands)	Managed Co- Investment Funds		Managed Funds Of Funds		Debt Funds		Available- For-Sale Securities		Strategic and Other Investments		Total

Total gains on investment securities, net	$	8,552	$	11,825	$	1,527	$	23,605	$	1,102	$	46,611
Less: gains on sales of available-for-sale securities		—		—		—		23,605		—		23,605

Net gains on investment securities excluding gains on sales of available-for-sale securities		8,552		11,825		1,527		—		1,102		23,006
Less: income attributable to noncontrolling interests, including carried interest		6,710		10,081		26		—		—		16,817

Non-GAAP net gains on investment securities, net of noncontrolling interests (1)	$	1,842	$	1,744	$	1,501	$	—	$	1,102	$	6,189

A reconciliation of non-GAAP calculations to GAAP is provided below under the section “Use of Non-GAAP Financial Measures.”

•

A decrease in other noninterest income of $0.6 million, mainly driven by net losses of $0.4 million from revaluation of our foreign currency denominated loans for the fourth quarter of 2010, compared to net gains of $2.9 million for the third quarter of 2010. The net losses of $0.4 million for the fourth quarter of 2010 were primarily due to the strengthening of the U.S. dollar against the Euro and Pound Sterling, and were partially offset by net gains of $0.5 million from foreign exchange forward contracts, which we use to hedge the risk of our foreign currency denominated loans and are included in net gains (losses) on derivative instruments. This decrease was partially offset by an increase of $1.5 million in unfunded commitment fees primarily due to the recognition of an additional $1.4 million as a result of moving from a cash basis to an accrual basis in accordance with GAAP for recognizing these fees.

•

Net gains on derivative instruments were $5.0 million for the fourth quarter of 2010, compared to $1.3 million for the third quarter of 2010. The following table provides a summary of our net gains (losses) on derivative instruments:


	Three months ended							Year ended
(Dollars in thousands)	December 31, 2010		September 30, 2010			December 31, 2009		December 31, 2010		December 31, 2009
Gains (losses) on foreign exchange forward contracts, net:
Gains on client foreign exchange forward contracts, net	$	662	$	420		$	426	$	1,914	$	1,730
Gains (losses) on internal foreign exchange forward contracts, net (1)		532		(2,987	)		406		710		(2,258	)

Total gains (losses) on foreign exchange forward contracts, net		1,194		(2,567	)		832		2,624		(528	)
Change in fair value of interest rate swap		—		—			—		—		(170	)
Net gains on other derivatives		280		62			—		342		—
Net gains (losses) on equity warrant assets		3,483		3,762			538		6,556		(55	)

Total gains (losses) on derivative instruments, net	$	4,957	$	1,257		$	1,370	$	9,522	$	(753	)

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 in the line item “Other” as part of noninterest income, a component of consolidated net income.

The key changes in factors affecting net gains on derivative instruments from the third quarter to the fourth quarter of 2010 were as follows:

•

Net gains of $0.5 million from foreign exchange forward contracts hedging our foreign currency denominated loans in the fourth quarter of 2010, compared to net losses of $3.0 million in the third quarter of 2010. The net gains of $0.5 million in the fourth quarter of 2010 were primarily due to the strengthening of the U.S. dollar against the Euro and Pound Sterling, and were partially offset by net losses of $0.4 million from revaluation of foreign currency denominated loans that are included in the line item “Other” as part of noninterest income (as discussed above).

•

Net gains on equity warrant assets of $3.5 million for the fourth quarter of 2010, compared to net gains of $3.8 million for the third quarter of 2010. The net gains on equity warrant assets of $3.5 million for the fourth quarter of 2010 were driven by $3.5 million from valuation increases in our warrant portfolio and $0.4 million from the exercise of certain warrant positions, partially offset by $0.4 million from warrant cancellations and expirations.

•

An increase in deposit service charges of $2.1 million, primarily due to the recognition of an additional $2.4 million as a result of moving from a cash basis to an accrual basis in accordance with GAAP for recognizing these fees.

•

An increase in foreign exchange fees of $0.9 million, primarily due to improving business conditions for our clients, which has resulted in higher commissioned notional volumes. Commissioned notional volumes were $2.1 billion for the fourth quarter of 2010, compared to $1.9 billion for the third quarter of 2010.

Non-GAAP noninterest income, net of noncontrolling interests and excluding gains on sales of certain agency and non-agency backed available-for-sale securities, was $52.1 million for the fourth quarter of 2010, compared to $45.0 million for the third quarter of 2010 and $34.1 million for the fourth quarter of 2009. 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 $115.9 million for the fourth quarter of 2010, compared to $104.2 million for the third quarter of 2010, compared to $87.9 million for the fourth quarter of 2009.

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


	Three months ended						Year ended
(Dollars in thousands)	December 31, 2010		September 30, 2010		December 31, 2009		December 31, 2010		December 31, 2009
Compensation and benefits:
Salaries and wages	$	29,921	$	28,990	$	26,481	$	116,639	$	108,417
Incentive compensation plan		17,091		15,020		7,872		57,484		25,163
Employee stock ownership plan		2,142		1,991		—		8,019		—
Other employee benefits (1)		17,459		16,169		14,236		66,464		56,051

Total compensation and benefits		66,613		62,170		48,589		248,606		189,631
Professional services		18,765		12,618		11,088		56,123		46,540
FDIC assessments		3,225		2,637		3,182		16,498		17,035
Provision for (reduction of) unfunded credit commitments		1,522		1,692		1,999		4,083		(1,367	)
Impairment of goodwill		—		—		—		—		4,092
Other (2)		25,766		25,054		23,049		97,508		87,935

Total noninterest expense	$	115,891	$	104,171	$	87,907	$	422,818	$	343,866

Period-end full-time equivalent employees		1,357		1,341		1,258		1,357		1,258
Average full-time equivalent employees		1,353		1,321		1,256		1,305		1,259

(1)	Other employee benefits expense includes employer payroll taxes, group health and life insurance, share-based compensation, 401(k), warrant and retention plans, agency fees and other employee related expenses.

(2)

Other noninterest expense includes premises and equipment, net occupancy, business development and travel, correspondent bank fees and other noninterest expenses. For further details of noninterest expense items, please refer to the section “Interim Consolidated Statements of Income” provided below.

The key changes in factors affecting noninterest expense from the third quarter to the fourth quarter of 2010 were as follows:

•

An increase of $6.1 million in professional services expense, primarily due to the following:

•

An increase of $3.3 million in consulting fees, primarily related to the acceleration of spending for certain infrastructure projects, including our UK Branch project, Private Banking project, and certain initiatives to maintain and enhance our Information Technology infrastructure.

•

An increase of $2.3 million in legal fees, primarily due to increased loan activities and legal fees to support growth initiatives, including our UK Branch project and joint venture application in China.

•

An increase in compensation and benefits expense of $4.4 million, primarily as a result of the following:

•

An increase of $2.2 million in incentive compensation related expenses (including ESOP expenses), as we exceeded our internal performance targets for 2010.

•

An increase of $0.9 million in salaries and wages expense primarily due to an increase in the number of average full-time equivalent (“FTE”) employees, which increased by 32 to 1,353 FTEs for the fourth quarter of 2010, compared to 1,321 FTEs for the third quarter of 2010

•

An increase of $0.6 million in FDIC assessments, primarily due to an increase in average deposit balances in the fourth quarter of 2010.

Non-GAAP noninterest expense, net of noncontrolling interests, was $112.6 million for the fourth quarter of 2010, compared to $101.2 million for the third quarter of 2010 and $84.6 million for the fourth quarter of 2009. 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

Our effective tax expense rate was 38.6 percent for the fourth quarter of 2010, compared to 39.8 percent for the third quarter of 2010 and 39.6 percent for the fourth quarter of 2009. The decrease in the tax rate from the third quarter to the fourth quarter of 2010 was primarily due to the higher effect of tax advantaged assets as a percentage of pre-tax income.

Our effective tax expense rate was 39.3 percent for the year ended December 31, 2010, compared to 42.3 percent for 2009. The decrease was primarily attributable to the effect of lower non-deductible expenses as a percentage of pre-tax income for the year ended December 31, 2010, and the effect of the $4.1 million non-deductible goodwill impairment charge associated with eProsper in the first quarter of 2009.

Our effective tax expense 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.

Noncontrolling Interests

Net income attributable to noncontrolling interests was $16.5 million for the fourth quarter of 2010, compared to $14.7 million for the third quarter of 2010 and $3.3 million for the fourth quarter of 2009. Net income attributable to noncontrolling interests of $16.5 million for the fourth quarter of 2010 was primarily a result of the following:

•

Net gains on investment securities (including carried interest) attributable to noncontrolling interests of $19.4 million, stemming mainly from gains of $9.7 million from our managed funds of funds and $9.7 million from our managed co-investment funds.

•

Noninterest expense of $3.3 million, primarily related to management fees paid by the noncontrolling interests to the Company’s subsidiaries that serve as general partner.

SVBFG Stockholders’ Equity

Total SVBFG stockholders’ equity increased by $5.7 million to $1.3 billion at December 31, 2010, primarily due to net income of $17.5 million in the fourth quarter of 2010 and an increase in additional-paid-in-capital of $11.7 million primarily from stock option exercises during the fourth quarter of 2010. These increases were partially offset by a decrease in accumulated other comprehensive income of $23.5 million, primarily due to decreases in the fair value of our fixed income investment portfolio as a result of increases in market rates.

Outlook for the Year Ending December 31, 2011

Our outlook for the year ending December 31, 2011 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 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 assumptions 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, 2011, compared to our 2010 results, we currently expect the following outlook:



		Current full year 2011 outlook compared to 2010 results (as of January 20, 2011)

Average loan balances		Increase at the percentage rate in the mid twenties

Average deposit balances		Increase at the percentage rate in the high single digits

Net interest income		Increase at the percentage rate in the high teens

Net interest margin		Between 3.30% and 3.40%

Allowance for loan losses for total gross performing loans as a percentage of total gross performing loans		Between 1.30% and 1.40%

Net loan charge-offs		Comparable to 2010 levels of $34.5 million

Nonperforming loans as a percentage of total gross loans		Comparable to 2010 levels of 0.71%

Fees for deposit services, letters of credit, business credit card, client investment, and foreign exchange, in aggregate		Increase at the percentage rate in the high single digits

Net gains (losses) on equity warrant assets		Comparable to 2010 levels of $6.6 million

Net gains (losses) on investment securities (excluding gains from sales of available-for-sale securities), net of noncontrolling interests*		Between $4 million and $8 million

Noninterest expense* (excluding expenses related to noncontrolling interests)		Increase at the percentage rate in the low double digits

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 the section “Outlook for the Year Ending December 31, 2011” above and the quoted remarks regarding conditions affecting our clients, our positioning and the potential for economic recovery from our CEO, we make forward-looking statements discussing management’s expectations about economic conditions; opportunities in the market; the outlook for our clients; our financial, credit (including the adequacy of our allowance for loan losses and relationship of allowance for loan losses to perceived economic conditions and credit quality), and business performance; expense levels; and financial results (and the components of such results) for the year 2011.

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 2011 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 offerings and mergers & acquisitions activities), (ii) changes in the volume and credit quality of our loans, (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, (vii) accounting changes, as required by U.S. generally accepted accounting principles, and (viii) regulatory or legal changes, especially those related to the recent financial services reform legislation. 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 20, 2011, 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, 2010. The conference call can be accessed by dialing (877) 663-9523 or (404) 665-9482, and referencing the conference ID “36563462.” 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 20, 2011, through midnight on Tuesday, January 25, 2011, by dialing (800) 642-1687 or (706) 645-9291 and referencing conference ID number “36563462.” A replay of the audio webcast will also be available on www.svb.com for 12 months beginning Thursday, January 20, 2011.

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 26 offices in the U.S. as well as through offices internationally 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									Year ended
(Dollars in thousands, except share data)	December 31, 2010			September 30, 2010			December 31, 2009			December 31, 2010			December 31, 2009
Interest income:
Loans	$	89,324		$	80,716		$	80,258		$	319,540		$	335,806
Available-for-sale securities:
Taxable		25,929			32,375			28,329			127,422			81,536
Non-taxable		940			948			996			3,809			4,094
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities		2,516			2,719			2,562			10,960			9,790

Total interest income		118,709			116,758			112,145			461,731			431,226

Interest expense:
Deposits		3,463			3,783			4,093			14,778			21,346
Borrowings		10,728			6,634			5,912			28,818			27,730

Total interest expense		14,191			10,417			10,005			43,596			49,076

Net interest income		104,518			106,341			102,140			418,135			382,150
Provision for loan losses		15,504			10,971			17,291			44,628			90,180

Net interest income after provision for loan losses		89,014			95,370			84,849			373,507			291,970

Noninterest income:
Gains (losses) on investment securities, net		25,940			46,611			6,681			93,360			(31,209	)
Foreign exchange fees		9,943			9,091			8,161			36,150			30,735
Deposit service charges		9,386			7,324			7,344			31,669			27,663
Client investment fees		4,458			4,681			4,344			18,020			21,699
Credit card fees		3,832			3,139			2,618			12,685			9,314
Letters of credit and standby letters of credit income		2,613			2,752			2,093			10,482			10,333
Gains (losses) on derivative instruments, net		4,957			1,257			1,370			9,522			(753	)
Other		10,735			11,381			8,131			35,642			29,961

Total noninterest income		71,864			86,236			40,742			247,530			97,743

Noninterest expense:
Compensation and benefits		66,613			62,170			48,589			248,606			189,631
Professional services		18,765			12,618			11,088			56,123			46,540
Premises and equipment		6,372			5,548			6,277			23,023			23,270
Business development and travel		5,695			5,153			4,436			20,237			14,014
Net occupancy		4,910			5,131			4,542			19,378			17,888
FDIC assessments		3,225			2,637			3,182			16,498			17,035
Correspondent bank fees		2,247			2,228			2,046			8,379			8,040
Provision for (reduction of) unfunded credit commitments		1,522			1,692			1,999			4,083			(1,367	)
Impairment of goodwill		—			—			—			—			4,092
Other		6,542			6,994			5,748			26,491			24,723

Total noninterest expense		115,891			104,171			87,907			422,818			343,866

Income before income tax expense		44,987			77,435			37,684			198,219			45,847
Income tax expense		11,005			24,996			13,602			61,402			35,207

Net income before noncontrolling interests		33,982			52,439			24,082			136,817			10,640
Net (income) loss attributable to noncontrolling interests		(16,495	)		(14,652	)		(3,338	)		(41,866	)		37,370

Net income attributable to SVBFG	$	17,487		$	37,787		$	20,744		$	94,951		$	48,010

Preferred stock dividend and discount accretion		—			—			(14,700	)		—			(25,336	)

Net income available to common stockholders	$	17,487		$	37,787		$	6,044		$	94,951		$	22,674

Earnings per common share—basic	$	0.42		$	0.90		$	0.17		$	2.27		$	0.67
Earnings per common share—diluted	$	0.41		$	0.89		$	0.16		$	2.24		$	0.66
Weighted average common shares outstanding—basic		42,067,453			41,930,456			36,475,822			41,773,652			33,900,913
Weighted average common shares outstanding—diluted		42,802,817			42,512,515			37,214,151			42,478,340			34,182,728

SVB FINANCIAL GROUP AND SUBSIDIARIES

INTERIM CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Dollars in thousands, except par value, share data and ratios)	December 31, 2010			September 30, 2010			December 31, 2009
Assets:
Cash and due from banks	$	2,672,725		$	3,387,204		$	3,454,611
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities		403,707			391,165			58,242

Cash and cash equivalents		3,076,432			3,778,369			3,512,853

Available-for-sale securities		7,917,967			6,003,198			3,938,188
Non-marketable securities		721,520			656,067			553,531

Investment securities		8,639,487			6,659,265			4,491,719

Loans, net of unearned income		5,521,737			4,859,205			4,548,094
Allowance for loan losses		(82,627	)		(74,369	)		(72,450	)

Net loans		5,439,110			4,784,836			4,475,644

Premises and equipment, net of accumulated depreciation and amortization		44,545			41,917			31,736
Accrued interest receivable and other assets		328,187			395,682			329,447

Total assets	$	17,527,761		$	15,660,069		$	12,841,399


Liabilities and total equity:
Liabilities:
Deposits:
Noninterest-bearing demand	$	9,011,538		$	7,449,081		$	6,298,988
Negotiable order of withdrawal (NOW)		69,287			38,134			53,200
Money market		2,272,883			2,067,620			1,292,215
Money market deposits in foreign offices		98,937			76,795			49,722
Time		382,830			378,687			332,310
Sweep		2,501,466			2,404,628			2,305,502

Total deposits		14,336,941			12,414,945			10,331,937

Short-term borrowings		37,245			59,735			38,755
Other liabilities		196,037			263,283			139,947
Long-term debt		1,209,260			1,225,810			856,650

Total liabilities		15,779,483			13,963,773			11,367,289


SVBFG stockholders’ equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized; no shares issued and outstanding		—			—			—
Common stock, $0.001 par value, 150,000,000 shares authorized; 42,268,201 shares, 41,964,764 shares and 41,338,389 shares outstanding, respectively		42			42			41
Additional paid-in capital		422,334			410,590			389,490
Retained earnings		827,831			810,379			732,907
Accumulated other comprehensive income		24,143			47,600			5,905

Total SVBFG stockholders’ equity		1,274,350			1,268,611			1,128,343
Noncontrolling interests		473,928			427,685			345,767

Total equity		1,748,278			1,696,296			1,474,110

Total liabilities and total equity	$	17,527,761		$	15,660,069		$	12,841,399


Capital ratios:
Total risk-based capital ratio		17.35	%		19.10	%		19.94	%
Tier 1 risk-based capital ratio		13.63			15.03			15.45
Tier 1 leverage ratio		7.96			8.77			9.53
Tangible common equity to tangible assets ratio (1)		7.27			8.10			8.78
Tangible common equity to risk-weighted assets ratio		13.54			15.17			15.05

Other period-end statistics:
Loans, net of unearned income-to-deposits ratio		38.51	%		39.14	%		44.02	%
Book value per common share (2)	$	30.15		$	30.23		$	27.30
Full-time equivalent employees		1,357			1,341			1,258

(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.

(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, 2010									September 30, 2010									December 31, 2009
(Dollars in thousands)	Average balance			Interest income/ expense			Yield/ rate			Average balance			Interest income/ expense			Yield/ rate			Average balance			Interest income/ expense			Yield/ rate
Interest-earning assets:
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1)	$	3,340,219		$	2,516			0.30	%	$	3,740,869		$	2,719			0.29	%	$	3,755,892		$	2,562			0.27	%
Available-for-sale securities: (2)
Taxable		6,781,708			25,929			1.52			5,181,966			32,375			2.48			3,194,147			28,329			3.52
Non-taxable (3)		96,393			1,447			5.96			96,991			1,458			5.96			101,107			1,532			6.01
Total loans, net of unearned income (4)		5,007,127			89,324			7.08			4,498,487			80,716			7.12			4,367,985			80,258			7.29

Total interest-earning assets		15,225,447			119,216			3.11			13,518,313			117,268			3.45			11,419,131			112,681			3.92

Cash and due from banks		240,561									222,458									232,266
Allowance for loan losses		(80,347	)								(77,937	)								(91,653	)
Other assets (5)		1,140,539									1,092,804									927,348

Total assets	$	16,526,200								$	14,755,638								$	12,487,092


Funding sources:
Interest-bearing liabilities:
NOW deposits	$	54,645		$	58			0.42	%	$	48,284		$	47			0.39	%	$	40,151		$	40			0.40	%
Regular money market deposits		151,159			103			0.27			154,716			104			0.27			144,655			123			0.34
Bonus money market deposits		2,112,901			1,470			0.28			1,809,122			1,350			0.30			1,203,460			1,158			0.38
Money market deposits in foreign offices		108,215			89			0.33			79,838			64			0.32			67,404			74			0.44
Time deposits		369,766			419			0.45			399,444			400			0.40			330,610			526			0.63
Sweep deposits		2,484,240			1,324			0.21			2,502,844			1,818			0.29			2,098,254			2,172			0.41

Total interest-bearing deposits		5,280,926			3,463			0.26			4,994,248			3,783			0.30			3,884,534			4,093			0.42
Short-term borrowings		56,399			27			0.19			52,949			26			0.19			49,525			15			0.12
5.375% senior notes		347,571			4,811			5.49			41,555			534			5.10			—			—			—
3.875% convertible senior notes		248,917			3,547			5.65			248,331			3,540			5.66			246,625			3,520			5.66
Junior subordinated debentures		55,577			830			5.92			55,621			831			5.93			55,974			893			6.33
Senior and subordinated notes		567,362			1,432			1.00			566,948			1,637			1.15			558,421			1,417			1.01
Other long-term debt		5,797			81			5.54			6,392			66			4.10			7,831			67			3.39

Total interest-bearing liabilities		6,562,549			14,191			0.86			5,966,044			10,417			0.69			4,802,910			10,005			0.83
Portion of noninterest-bearing funding sources		8,662,898									7,552,269									6,616,221

Total funding sources		15,225,447			14,191			0.37			13,518,313			10,417			0.31			11,419,131			10,005			0.35


Noninterest-bearing funding sources:
Demand deposits		8,016,091									6,924,973									5,998,373
Other liabilities		226,930									197,865									169,293
SVBFG stockholders’ equity		1,291,361									1,265,971									1,183,276
Noncontrolling interests		429,269									400,785									333,240
Portion used to fund interest-earning assets		(8,662,898	)								(7,552,269	)								(6,616,221	)

Total liabilities and total equity	$	16,526,200								$	14,755,638								$	12,487,092

Net interest income and margin				$	105,025			2.74	%				$	106,851			3.14	%				$	102,676			3.57	%

Total deposits	$	13,297,017								$	11,919,221								$	9,882,907

Average SVBFG stockholders’ equity as a percentage of average assets								7.81	%								8.58	%								9.48	%

Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis					(507	)								(510	)								(536	)

Net interest income, as reported				$	104,518								$	106,341								$	102,140

(1)

Includes average interest-bearing deposits in other financial institutions of $245.6 million, $237.8 million and $169.0 million for the quarters ended December 31, 2010, September 30, 2010 and December 31, 2009, respectively. For the quarters ended December 31, 2010, September 30, 2010 and December 31, 2009, balance also includes $2.7 billion, $3.4 billion and $3.5 billion, respectively, deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate.

(2)	Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income.

(3)	Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 35.0 percent for all periods presented.

(4)	Nonaccrual loans are reflected in the average balances of loans.

(5)

Average investment securities of $748.4 million, $740.1 million and $578.0 million for the quarters ended December 31, 2010, September 30, 2010 and December 31, 2009, 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, 2010									December 31, 2009
(Dollars in thousands)	Average balance			Interest income/ expense			Yield/ rate			Average balance			Interest income/ expense			Yield/ rate
Interest-earning assets:
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities (1)	$	3,869,781		$	10,960			0.28	%	$	3,333,182		$	9,790			0.29	%
Available-for-sale securities: (2)
Taxable		5,249,884			127,422			2.43			2,179,181			81,536			3.74
Non-taxable (3)		97,443			5,860			6.01			103,150			6,298			6.11
Total loans, net of unearned income (4)		4,435,911			319,540			7.20			4,699,696			335,806			7.15

Total interest-earning assets		13,653,019			463,782			3.40			10,315,209			433,430			4.20

Cash and due from banks		232,058									238,911
Allowance for loan losses		(77,999	)								(107,512	)
Goodwill		—									1,000
Other assets (5)		1,051,158									878,733

Total assets	$	14,858,236								$	11,326,341


Funding sources:
Interest-bearing liabilities:
NOW deposits	$	51,423		$	208			0.40	%	$	42,022		$	160			0.38	%
Regular money market deposits		149,206			408			0.27			149,696			748			0.50
Bonus money market deposits		1,668,907			4,900			0.29			1,034,152			5,404			0.52
Money market deposits in foreign offices		83,253			272			0.33			62,440			416			0.67
Time deposits		361,921			1,786			0.49			355,602			2,445			0.69
Sweep deposits		2,496,649			7,204			0.29			1,860,899			12,173			0.65

Total interest-bearing deposits		4,811,359			14,778			0.31			3,504,811			21,346			0.61
Short-term borrowings		49,972			92			0.18			46,133			72			0.16
5.375% senior notes		98,081			5,345			5.45			—			—			—
3.875% convertible senior notes		248,056			14,147			5.70			245,756			14,043			5.71
Junior subordinated debentures		55,706			3,061			5.49			55,948			3,465			6.19
Senior and subordinated notes		559,915			5,895			1.05			560,398			9,166			1.64
Other long-term debt		6,620			278			4.20			61,752			984			1.59

Total interest-bearing liabilities		5,829,709			43,596			0.75			4,474,798			49,076			1.10
Portion of noninterest-bearing funding sources		7,823,310									5,840,411

Total funding sources		13,653,019			43,596			0.32			10,315,209			49,076			0.47


Noninterest-bearing funding sources:
Demand deposits		7,216,968									5,289,288
Other liabilities		189,475									179,795
SVBFG stockholders’ equity		1,230,569									1,063,175
Noncontrolling interests		391,515									319,285
Portion used to fund interest-earning assets		(7,823,310	)								(5,840,411	)

Total liabilities and total equity	$	14,858,236								$	11,326,341

Net interest income and margin				$	420,186			3.08	%				$	384,354			3.73	%

Total deposits	$	12,028,327								$	8,794,099

Average SVBFG stockholders’ equity as a percentage of average assets								8.28	%								9.39	%

Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis					(2,051	)								(2,204	)

Net interest income, as reported				$	418,135								$	382,150

(1)

Includes average interest-bearing deposits in other financial institutions of $217.4 million and $176.5 million for the years ended December 31, 2010 and 2009, respectively. For the years ended December 31, 2010 and 2009, balance also includes $3.5 billion and $3.1 billion, respectively, deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate.

(2)	Yields on interest-earning investment securities do not give effect to changes in fair value that are reflected in other comprehensive income.

(3)	Interest income on non-taxable investment securities is presented on a fully taxable equivalent basis using the federal statutory tax rate of 35.0 percent for all periods presented.

(4)	Nonaccrual loans are reflected in the average balances of loans.

(5)	Average investment securities of $686.8 million and $505.5 million for the years ended December 31, 2010 and 2009, 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															Year ended
										% change
(Dollars in thousands)	December 31, 2010			September 30, 2010			December 31, 2009			September 30, 2010			December 31, 2009			December 31, 2010			December 31, 2009			% change
Gains (losses) on foreign exchange forward contracts, net:
Gains on client foreign exchange forward contracts, net (1)	$	662		$	420		$	426			57.6	%		55.4	%	$	1,914		$	1,730			10.6	%
Gains (losses) on internal foreign exchange forward contracts, net (2)		532			(2,987	)		406			(117.8	)		31.0			710			(2,258	)		(131.4	)

Total gains (losses) on foreign exchange forward contracts, net		1,194			(2,567	)		832			(146.5	)		43.5			2,624			(528	)		NM
Change in fair value of interest rate swap		—			—			—			—			—			—			(170	)		(100.0	)
Net gains on other derivatives		280			62			—			NM			—			342			—			—
Equity warrant assets:
Gains on exercise, net		425			3,462			1,271			(87.7	)		(66.6	)		5,524			933			NM
Change in fair value (3):
Cancellations and expirations		(449	)		(513	)		(871	)		(12.5	)		(48.5	)		(3,488	)		(4,515	)		(22.7	)
Other changes in fair value		3,507			813			138			NM			NM			4,520			3,527			28.2

Total net gains (losses) on equity warrant assets (4)		3,483			3,762			538			(7.4	)		NM			6,556			(55	)		NM

Total gains (losses) on derivative instruments, net	$	4,957		$	1,257		$	1,370			NM	%		NM	%	$	9,522		$	(753	)		NM	%

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)	At December 31, 2010, we held warrants in 1,157 companies, compared to 1,158 companies at September 30, 2010 and 1,225 companies at December 31, 2009.

(4)	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									Year ended
(Dollars in thousands)	December 31, 2010			September 30, 2010			December 31, 2009			December 31, 2010			December 31, 2009
Net interest (income) loss (1)	$	(8	)	$	(2	)	$	(11	)	$	(28	)	$	18
Noninterest (income) loss (1)		(19,751	)		(17,922	)		(6,668	)		(55,419	)		26,278
Noninterest expense (1)		3,298			2,939			3,344			12,348			12,451
Carried interest (2)		(34	)		333			(3	)		1,233			(1,377	)

Net (income) loss attributable to noncontrolling interests	$	(16,495	)	$	(14,652	)	$	(3,338	)	$	(41,866	)	$	37,370

(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 our managed funds, the preferred allocation earned by the general partner entity managing one of our consolidated sponsored debt funds, and the preferred allocation earned by the limited partners of one of our managed funds of funds.

Reconciliation of Basic and Diluted Weighted Average Common Shares Outstanding


	Three months ended						Year ended
(Shares in thousands)	December 31, 2010		September 30, 2010		December 31, 2009		December 31, 2010		December 31, 2009
Weighted average common shares outstanding—basic		42,067		41,931		36,476		41,774		33,901
Effect of dilutive securities:
Stock options		636		511		643		641		282
Restricted stock awards and units		100		71		95		63		—
3.875% convertible senior notes (1)		—		—		—		—		—
Warrants associated with 3.875% convertible senior notes (1)		—		—		—		—		—

Total effect of dilutive securities		736		582		738		704		282

Weighted average common shares outstanding—diluted		42,803		42,513		37,214		42,478		34,183

(1)

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.

Credit Quality


	Period end balances at
(Dollars in thousands)	December 31, 2010			September 30, 2010			December 31, 2009
Nonperforming loans and assets:
Nonperforming loans:
Loans past due 90 days or more still accruing interest	$	44		$	-		$	2,456
Impaired loans		39,426			45,017			50,227

Total nonperforming loans		39,470			45,017			52,683
Other real estate owned		—			—			220

Total nonperforming assets	$	39,470		$	45,017		$	52,903

Nonperforming loans as a percentage of total gross loans		0.71	%		0.92	%		1.15	%
Nonperforming assets as a percentage of total assets		0.23			0.29			0.41

Allowance for loan losses	$	82,627		$	74,369		$	72,450
As a percentage of total gross loans		1.48	%		1.52	%		1.58	%
As a percentage of total gross nonperforming loans		209.34			165.20			137.52
Allowance for loan losses for total gross impaired loans	$	6,936		$	6,538		$	8,868
As a percentage of total gross loans		0.12	%		0.13	%		0.19	%
As a percentage of total gross nonperforming loans		17.57			14.52			16.83
Allowance for loan losses for total gross performing loans	$	75,691		$	67,831		$	63,582
As a percentage of total gross loans		1.36	%		1.38	%		1.39	%
As a percentage of total gross performing loans		1.37			1.40			1.40
Reserve for unfunded credit commitments (1)	$	17,414		$	15,892		$	13,331
Total gross loans		5,567,205			4,900,129			4,582,966
Total gross performing loans		5,527,735			4,855,112			4,530,283
Total unfunded credit commitments		6,270,505			5,892,077			5,338,726

(1)	The “Reserve for Unfunded Credit Commitments” is included as a component of “Other liabilities.”

Average Client Investment Funds (1)


	Three months ended						Year ended
(Dollars in millions)	December 31, 2010		September 30, 2010		December 31, 2009		December 31, 2010		December 31, 2009
Client directed investment assets	$	9,218	$	9,171	$	10,190	$	9,279	$	10,879
Client investment assets under management		7,080		6,803		5,911		6,432		5,659
Sweep money market funds		—		—		—		—		56

Total average client investment funds	$	16,298	$	15,974	$	16,101	$	15,711	$	16,594

(1)	Client investment funds are maintained at third party financial institutions.

Period-end total client investment funds were $16.9 billion at December 31, 2010, compared to $16.1 billion at September 30, 2010 and $15.6 billion at December 31, 2009. The increases in average and period-end total client investment funds from the third quarter to the fourth quarter of 2010 was primarily due to an increase in client investment assets under management, mainly attributable to a combination of a stronger funding environment and an increase in existing client funding.

Use of Non-GAAP Financial Measures

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

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

•

Income and expense attributable to noncontrolling interests—As part of our funds management business, we recognize the entire income or loss from certain funds where we own less than 100 percent. We are required under GAAP to consolidate 100 percent of the results of the funds that we are deemed to control or in which we have a majority ownership. The relevant amounts attributable to investors other than us are reflected under “Net (Income) Loss Attributable to Noncontrolling Interests.” Our net income available to common stockholders includes only the portion of income or loss related to our ownership interest.

•

Non-tax deductible goodwill impairment charge of $4.1 million in the first quarter of 2009 resulting from changes in our outlook for future financial performance of eProsper.

•

Gains of $23.6 million and $1.1 million from the sales of certain agency and non-agency backed available-for-sale securities in the third quarter and second quarter of 2010, respectively.

•

Non-tax deductible charge of $11.4 million related to TARP repayment in the fourth quarter of 2009.

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, including:

•

Tangible common equity to tangible assets ratio; tangible common equity to risk-weighted assets ratio—These ratios are not required by GAAP or applicable bank regulatory requirements, and are used by management to evaluate the adequacy of the Company’s capital levels. Our ratios are calculated by dividing total SVBFG stockholders’ equity, by total assets or total risk-weighted assets, as applicable, after reducing amounts by acquired intangibles. The manner in which this ratio is calculated varies among companies. Accordingly, our ratios are not necessarily comparable to similar measures of other companies.

•

Non-GAAP operating efficiency ratio—This ratio excludes certain financial items that are otherwise required under GAAP. It is calculated by dividing noninterest expense (excluding goodwill impairment for applicable periods) by total taxable equivalent income (excluding gains on sales of certain agency and non-agency backed available-for-sale securities for applicable periods), after reducing both amounts by taxable equivalent losses (income) attributable to noncontrolling interests for applicable periods.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures (as applicable), provide meaningful supplemental information regarding our performance by: (i) excluding amounts attributable to noncontrolling interests 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 tables 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.


	Three months ended							Year ended
(Dollars in thousands, except share amounts)	December 31, 2010		September 30, 2010			December 31, 2009		December 31, 2010			December 31, 2009
Net income available to common stockholders	$	17,487	$	37,787		$	6,044	$	94,951		$	22,674
Impairment of goodwill (1)		—		—			—		—			4,092
Gains on sales of available-for-sale securities (2)		—		(23,605	)		—		(24,699	)		—
Tax impact of gains on sales of available-for-sale securities		—		9,397			—		9,830			—
Non-cash charge related to CPP repayment (3)		—		—			11,412		—			11,412

Non-GAAP net income available to common stockholders	$	17,487	$	23,579		$	17,456	$	80,082		$	38,178

GAAP earnings per common share—diluted	$	0.41	$	0.89		$	0.16	$	2.24		$	0.66
Impact of impairment of goodwill (1)		—		—			—		—			0.12
Impact of gains on sales of available-for-sale securities (2)		—		(0.56	)		—		(0.58	)		—
Tax impact of gains on sales of available-for-sale securities		—		0.22			—		0.23			—
Impact of non-cash charge related to CPP repayment (3)		—		—			0.31		—			0.34

Non-GAAP earnings per common share—diluted	$	0.41	$	0.55		$	0.47	$	1.89		$	1.12

Weighted average diluted common shares outstanding		42,802,817		42,512,515			37,214,151		42,478,340			34,182,728

(1)	Non-tax deductible goodwill impairment charge for eProsper recognized in the first quarter of 2009.

(2)	Gains on the sales of $492.9 million and $157.9 million in certain agency and non-agency backed available-for-sale securities in the third quarter and second quarter of 2010, respectively.

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


	Three months ended						Year ended
Non-GAAP noninterest income, net of noncontrolling interests (dollars in thousands)	December 31, 2010		September 30, 2010		December 31, 2009		December 31, 2010		December 31, 2009
GAAP noninterest income	$	71,864	$	86,236	$	40,742	$	247,530	$	97,743
Less: income (losses) attributable to noncontrolling interests, including carried interest		19,785		17,589		6,671		54,186		(24,901	)
Less: gains on sales of available-for-sale securities		—		23,605		—		24,699		—

Non-GAAP noninterest income, net of noncontrolling interests	$	52,079	$	45,042	$	34,071	$	168,645	$	122,644


	Three months ended						Year ended
Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests (dollars in thousands)	December 31, 2010		September 30, 2010		December 31, 2009		December 31, 2010		December 31, 2009
GAAP net gains (losses) on investment securities	$	25,940	$	46,611	$	6,681	$	93,360	$	(31,209	)
Less: gains (losses) on investment securities attributable to noncontrolling interests, including carried interest		19,427		16,817		5,853		52,586		(26,638	)
Less: gains on sales of available-for-sale securities		—		23,605		—		24,699		—

Non-GAAP net gains (losses) on investment securities, net of noncontrolling interests	$	6,513	$	6,189	$	828	$	16,075	$	(4,571	)


	Three months ended									Year ended
Non-GAAP operating efficiency ratio, net of noncontrolling interests (dollars in thousands, except ratios)	December 31, 2010			September 30, 2010			December 31, 2009			December 31, 2010			December 31, 2009
GAAP noninterest expense	$	115,891		$	104,171		$	87,907		$	422,818		$	343,866
Less: amounts attributable to noncontrolling interests		3,298			2,939			3,344			12,348			12,451
Less: impairment of goodwill		—			—			—			—			4,092

Non-GAAP noninterest expense, net of noncontrolling interests	$	112,593		$	101,232		$	84,563		$	410,470		$	327,323


GAAP taxable equivalent net interest income	$	105,025		$	106,851		$	102,676		$	420,186		$	384,354
Less: income (losses) attributable to noncontrolling interests		8			2			11			28			(18	)

Non-GAAP taxable equivalent net interest income, net of noncontrolling interests		105,017			106,849			102,665			420,158			384,372

Non-GAAP noninterest income, net of noncontrolling interests		52,079			45,042			34,071			168,645			122,644

Non-GAAP taxable equivalent revenue, net of noncontrolling interests	$	157,096		$	151,891		$	136,736		$	588,803		$	507,016


Non-GAAP operating efficiency ratio		71.67	%		66.65	%		61.84	%		69.71	%		64.56	%


Non-GAAP non-marketable securities, net of noncontrolling interests (dollars in thousands)	December 31, 2010			September 30, 2010			December 31, 2009
GAAP non-marketable securities	$	721,520		$	656,067		$	553,531
Less: noncontrolling interests in non-marketable securities		423,400			375,988			320,523

Non-GAAP non-marketable securities, net of noncontrolling interests	$	298,120		$	280,079		$	233,008


Non-GAAP tangible common equity and tangible assets (dollars in thousands, except ratios)	December 31, 2010			September 30, 2010			December 31, 2009
GAAP SVBFG stockholders’ equity	$	1,274,350		$	1,268,611		$	1,128,343
Less: intangible assets		847			891			665

Tangible common equity	$	1,273,503		$	1,267,720		$	1,127,678

GAAP total assets	$	17,527,761		$	15,660,069		$	12,841,399
Less: intangible assets		847			891			665

Tangible assets	$	17,526,914		$	15,659,178		$	12,840,734

Risk-weighted assets	$	9,406,677		$	8,358,860		$	7,494,498
Tangible common equity to tangible assets		7.27	%		8.10	%		8.78	%
Tangible common equity to risk-weighted assets		13.54			15.17			15.05

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