SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 333-12305
SVB Financial Services, Inc.
(Exact name of registrant as specified in its charter)
New Jersey 22-3438058
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
103 West End Avenue, Somerville, New Jersey 08876
(Address of principal executive officers) (Zip Code)
(908) 704-1188
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
[ X ] Yes [ ] No
As of March 31, 1998 there were 2,759,624 shares of common stock, $2.09 par
value outstanding. These numbers have been restated to show a 2 for 1 stock
split effective April 16, 1998.
<PAGE>
SVB FINANCIAL SERVICES, INC.
FORM 10-Q
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 - Financial Statements and Notes to Consolidated Financial
Statements
ITEM 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II - OTHER INFORMATION
ITEM 1 - Legal Proceedings
ITEM 4 - Submission of Matters to a Vote of Securities Holders
ITEM 6 - Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEET AS OF March 31, December 31,
March 31, 1998 and December 31, 1997 1998 1997
------------- -------------
(Unaudited)
<S> <C> <C>
ASSETS
Cash & Due from Banks $ 6,279,429 $ 5,794,622
Federal Funds Sold 12,400,000 0
Other Short Term Investments 734,011 188,304
------------- -------------
Total Cash and Cash Equivalents 19,413,440 5,982,926
------------- -------------
Securities
Available for Sale, at Market Value 11,599,745 11,266,269
Held to Maturity 17,032,171 22,101,977
------------- -------------
Total Securities 28,631,916 33,368,246
------------- -------------
Loans 106,120,722 106,470,674
Allowance for Possible Loan Losses (1,027,248) (982,198)
Unearned Income (93,157) (99,433)
------------- -------------
Net Loans 105,000,317 105,389,043
------------- -------------
Premises & Equipment, Net 1,799,370 1,733,516
Other Assets 2,062,466 2,075,757
------------- -------------
Total Assets $ 156,907,509 $ 148,549,488
============= =============
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
Non-interest Bearing $ 22,793,988 $ 21,965,676
NOW Accounts 16,100,972 13,014,148
Savings 9,429,508 9,042,660
Money Market Accounts 18,331,629 16,227,255
Time
Greater than $100,000 9,595,945 12,879,808
Less than $100,000 66,132,294 60,800,469
------------- -------------
Total Deposits 142,384,336 133,930,016
------------- -------------
Federal Funds Purchased -- 500,000
Obligation Under Capital Lease 442,365 443,697
Accrued Expenses & Other Liabilities 716,546 580,245
------------- -------------
Total Liabilities 143,543,247 135,453,958
------------- -------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEET AS OF March 31, December 31,
March 31, 1998 and December 31, 1997 1998 1997
------------- -------------
(Unaudited)
<S> <C> <C>
SHAREHOLDERS' EQUITY
Common Stock $2.09 Par Value, 10,000,000 5,767,614 5,739,265
Shares Authorized; 2,759,624 Shares in 1998 and
2,746,060 Shares in 1997 Issued and Outstanding
Additional Paid-in Capital 5,487,552 5,459,397
Retained Earnings 2,092,807 1,859,173
Accumulated Other Comprehensive Income 16,289 37,695
------------- -------------
Total Shareholders' Equity 13,364,262 13,095,530
------------- -------------
Total Liabilities and Shareholders' Equity $ 156,907,509 $ 148,549,488
============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Quarter Ended March 31, 1998 1997
----------- -----------
(Unaudited)
<S> <C> <C>
INTEREST INCOME
Interest on Loans $2,363,603 $2,004,289
Interest on Securities Available for Sale 163,865 145,654
Interest on Securities Held to Maturity 303,805 223,112
Interest on Other Short Term Investments 3,605 20,531
Interest on Federal Funds Sold 81,260 73,169
---------- ----------
Total Interest Income 2,916,138 2,466,755
---------- ----------
INTEREST EXPENSE
Interest on Deposits 1,318,754 1,106,398
Interest on Federal Funds Purchased 183 --
Interest on Obligation Under Capital Lease 9,410 --
---------- ----------
Total Interest Expense 1,328,347 1,106,398
---------- ----------
Net Interest Income 1,587,791 1,360,357
PROVISION FOR POSSIBLE LOAN LOSSES 65,000 75,000
---------- ----------
Net Interest Income after Provision For Possible Loan Losses 1,522,791 1,285,357
---------- ----------
OTHER INCOME
Service Charges on Deposit Accounts 64,320 52,550
Gain on the Sale of Loans 50,791 26,755
Other Income 30,098 30,973
---------- ----------
Total Other Income 145,209 110,278
---------- ----------
OTHER EXPENSE
Salaries and Employee Benefits 673,629 520,716
Occupancy Expense 149,150 112,407
Equipment Expense 84,941 75,994
Other Expenses 367,741 298,998
---------- ----------
Total Other Expense 1,275,461 1,008,115
---------- ----------
Net Income Before Provision for Income Taxes 392,539 387,520
Provision for Income Taxes 158,905 156,027
---------- ----------
NET INCOME $ 233,634 $ 231,493
========== ==========
EARNINGS PER COMMON SHARES - Basic* $ 0.09 $ 0.09
========== ==========
EARNINGS PER COMMON SHARES - Diluted* $ 0.09 $ 0.09
========== ==========
</TABLE>
*Based on the 2 for 1 stock split effective April 16, 1998, earnings per share
on a Basic and Diluted basis would have been $0.17 before the stock split.
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Three Months Ended
For the Quarter Ended March 31, 1998 1997
--------- ----------
(Unaudited)
<S> <C> <C>
Net Income $ 233,634 $ 231,493
Other Comprehensive Income, Net of Tax
Unrealized (Losses) Arising in the Period (21,406) (54,497)
--------- ---------
Comprehensive Income $ 212,228 $ 176,996
========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Quarter Ended March 31, 1998 1997
------------ ------------
(Unaudited)
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 233,634 $ 231,493
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities
Provision for Possible Loan Losses 65,000 75,000
Depreciation and Amortization 88,533 66,941
(Accretion) /Amortization of Securities Premium/Discount (15,798) 449
(Increase) /Decrease in Other Assets 9,911 (151,555)
Increase/(Decrease) in Accrued Expenses and Other Liabilities 147,328 (65,153)
Increase/(Decrease) in Unearned Income (6,276) 6,292
------------ ------------
Net Cash Provided By Operating Activities 522,332 163,467
------------ ------------
INVESTING ACTIVITIES
Proceeds from Maturities of Securities
Available for Sale 3,204,415 285,729
Held to Maturity 7,334,432 2,285,850
Purchases of Securities
Available for Sale (3,571,183) (2,995,391)
Held to Maturity (2,247,969) (3,482,206)
Decrease/(Increase) in Loans 330,002 (4,366,759)
Capital Expenditures (151,007) (79,713)
------------ ------------
Net Cash Used for Investing Activities 4,898,690 (8,352,490)
------------ ------------
FINANCING ACTIVITIES
Net Increase/(Decrease) in Demand Deposits 3,915,136 (2,274,196)
Net Increase in Savings Deposits 386,848 206,869
Net Increase in Money Market Deposits 2,104,374 1,316,102
Net Increase in Time Deposits 2,047,962 5,947,462
(Decrease) in Federal Funds Purchased (500,000) --
(Decrease) in Obligation Under Capital Leases (1,332) --
Proceeds from the Issuance of Common Stock, Net 56,504 --
Increase in Common Stock from Late Acceptance of Exchange Offer -- 24,762
------------ ------------
Net Cash Provided by Financing Activities 8,009,492 5,220,999
------------ ------------
Increase/(Decrease) in Cash and Cash Equivalents, Net 13,430,514 (2,968,024)
Cash and Cash Equivalents, Beginning of Year 5,982,926 12,128,176
------------ ------------
Cash and Cash Equivalents, End of Period $ 19,413,440 $ 9,160,152
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Year for Interest $ 1,367,632 $ 1,090,072
============ ============
Cash Paid During the Year for Federal Income Taxes $ 40,000 $ 142,562
============ ============
</TABLE>
<PAGE>
SVB FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1998 (UNAUDITED)
1. SVB Financial Services, Inc., (the "Company"), a bank holding company, was
incorporated on February 7, 1996 with authorized capital of 10,000,000 shares of
$4.17 par value common stock. On September 3, 1996, the Company acquired 100
percent of the shares of Somerset Valley Bank (the "Bank") by exchanging 6
shares of its Common Stock for each 5 shares of the Bank. This exchange has been
accounted for as a reorganization of entities under common control, similar to a
pooling of interests, which resulted in no changes to the underlying carrying
amounts of assets and liabilities. Effective April 16, 1998, the Company
declared a 2 for 1 stock split, resulting in a $2.09 par value common stock. All
financial statements have been restated to reflect this.
The consolidated financial statements included herein have been
prepared without an audit pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to such rules and
regulations. The accompanying condensed consolidated financial statements
reflect all adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim periods presented. Such
adjustments are of a normal recurring nature. These consolidated condensed
financial statements should be read in conjunction with the audited financial
statements and the notes thereto. The results for the three months ended March
31, 1998 are not necessarily indicative of the results that may be expected for
the year ended December 31, 1998.
The consolidated financial statements include the accounts of Somerset
Valley Bank. All significant inter-company accounts and transactions have been
eliminated.
2. Loans
At March 31, 1998 and December 31, 1997 the composition of outstanding
loans is summarized as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
------------- ------------
<S> <C> <C>
Secured by Real Estate:
Residential Mortgage $ 33,375,671 $ 33,248,717
Commercial Mortgage 31,540,235 29,793,163
Construction 4,327,095 4,851,720
Commercial and Industrial 19,498,706 20,889,305
Loans to Individuals 5,415,764 4,969,103
Loans to Individuals for Automobiles 11,487,681 12,177,339
Other Loans 475,570 541,327
------------- ------------
$ 106,120,722 $106,470,674
============= ============
</TABLE>
There were no loans restructured during 1998 or 1997. There were no
loans past due 90 days or more and still accruing at March 31, 1998 and December
31, 1997. Loans in a non-accrual status totaled $59,443 at March 31, 1998 and
$62,632 at December 31, 1997.
<PAGE>
3. Allowance for Possible Loan Losses
The allowance for possible loan losses is based on estimates and
ultimate losses may vary from the current estimates. These estimates are
reviewed periodically and as adjustments become necessary, they are reflected in
operations in the period in which they become known. An analysis of the
allowance for possible loan losses is as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
----------- -----------
<S> <C> <C>
Balance January 1, $ 982,198 $ 783,366
Provision Charged to Operations 65,000 280,000
Charge Offs (20,250) (86,399)
Recoveries 300 5,231
----------- -----------
Balance End of Period $ 1,027,248 $ 982,198
=========== ===========
</TABLE>
4. New Accounting Pronouncement
On January 1, 1998, the Corporation adopted Statements of Financial
Accounting Standards (SFAS) No. 129, "Disclosure Information about Capital
Structure." SFAS No. 129 summarizes previously issued disclosure guidance
contained within APB Opinion No. 10 and No. 15, as well as SFAS No. 47. The
Corporation's current disclosures were not affected by the adoption of SFAS No.
129.
On January 1, 1998, the Corporation adopted SFAS No. 130, "Reporting
Comprehensive Income." SFAS No. 130 establishes standards to provide prominent
disclosure of comprehensive income items. Comprehensive income is the change in
equity of a business enterprise during a period from transactions and other
events and circumstances from non-owner sources. Prior period amounts have been
restated to conform to the provisions of SFAS No. 130. The adoption of SFAS 130
did not have a material impact on the Corporation's financial position or
results of operations.
On January 1, 1998, the Corporation adopted SFAS No. 131, "Disclosures
about Segments of an Enterprise and Related Information." SFAS No. 131 requires
that public business enterprises report certain information about operating
segments in a complete set of financial statements of the enterprise and in
condensed financial statements of interim periods issued to shareholders. It
also requires the reporting of certain information about their product and
services, the geographic area in which they operate, and their major customers.
The adoption of SFAS No. 131 did not have an impact on the Corporation's
financial position or results of operations.
The American Institute of Certified Public Accountants (AICPA)
executive committee has issued Statement of Position (SOP) 98-1, Accounting for
the Costs of Computer Software Developed or Obtained for Internal Use. The SOP
was issued to provide authoritative guidance on the subject of accounting for
the cost associated with the purchase or development of computer software. The
statement is effective for fiscal years beginning after December 15, 1998 for
costs incurred in those fiscal years for all projects, including projects in
progress when the SOP is adopted. The adoption of SOP 98-1 is not expected to
have a material impact on the Corporation's financial position or results of
operations.
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Net income for the first three months of 1998 was $233,634, an increase
of $2,141 or 1.0% as compared to the same period in 1997. Earnings per
share-Basic were $.09 in 1998 as compared to $.09 in 1997*. Earnings per share -
Diluted were $.09 in 1998 and 1997*.
*Based on the 2 for 1 stock split effective April 16, 1998, earnings
per share on a Basic and Diluted basis would have been $0.17 before the
stock split.
A detailed discussion of the major components of net income follows:
Net Interest Income
Net interest income for the first three months of 1998 was $1,587,791
compared to $1,360,357 in 1997, an increase of $227,434 or 15%.
Almost all of the increase can be attributed to an increase in average
earnings assets. Average earnings assets for the first three months of 1998 were
$141.8 million an increase of $20.7 million or 17% from the first three months
of 1997. Loans accounted for almost 74% of this increase as loans averaged
$104.7 million during the three months. The increase in loan balances caused
interest income to increase $344,217. Furthermore, the yield on loans increased
from 9.09%, to a 9.16%, which caused interest income to increase an additional
$15,097. Overall, interest income increased $449,383. Almost all of this amount
was due to the increase in average balances. The yield on earning assets was
8.34% for 1998 and 8.26% for 1997.
The overall cost of interest-bearing liabilities increased five basis
points from 4.65% to 4.70%. The Company had several deposit promotions during
the latter part of 1997 and the first quarter of 1998 to help introduce the
opening of the Bridgewater Township, Gaston Avenue and Arbor Glen offices.
Although average non-interest sources of funds (capital and demand deposits)
increased $2.6 million, the cost of funding earning assets increased from 3.70%
to 3.80%. The increase in the cost to fund earning assets resulted in an
increase in interest expense of $221,949.
The net result of the change in net interest income for the first three
months of 1998 versus the first three months of 1997 was an increase in earnings
of $227,434. However, due to a change in the mix of the assets and liabilities,
the net interest margin declined one basis point from a 4.55% to a 4.54%.
Provision for Loan Possible Losses
The provision for possible loan losses was $65,000 in the first three
months of 1998 as compared to $75,000 in the first three months of 1997. The
decrease in the provision was mostly related to the slowdown in growth of
outstanding loans. Total gross loans decreased $349,952 since December 31, 1997
but increased $13.9 million or 15% since March 31, 1997.
<PAGE>
Other Income
During the first three months of 1998, other income increased $34,931
or 32% over the same period in 1997. Gains on the sale of loans accounted for
$24,036 of the increase. The Company is a preferred SBA lender and, as such, it
originates SBA loans and sells the government guaranteed portions in the
secondary market while retaining the servicing. The amount of gains recognized
on SBA loans is dependent on the volume of new SBA loans generated each quarter.
The amounts can vary greatly from quarter to quarter and from year to year.
Service charges on deposit accounts increased $11,770 or 22% from the
same period last year. The growth in the number of commercial and consumer
checking accounts resulted in increased overdraft, account maintenance and wire
transfer fees. Foreign transaction fees at the Company's ATM machines were
instituted in the latter half of 1997, which resulted in a $5,501 increase in
ATM fees over last year.
Other income decreased $875 or 3.0%.
Other Expense
Other expenses for the three months ended March 31, 1998 increased
$267,346 or 27% from the same period in 1997. Since July of 1997, the Company
has opened a branch office in Bridgewater Township, a branch on Gaston Avenue in
Somerville, and a branch in the Arbor Glen assisted living facility in
Bridgewater Township. Expenses were impacted by additional personnel, occupancy
costs, and other expenses related to the opening of the new branches.
Consequently, total assets have grown $26.6 million or 20% since March 31, 1997.
Because of the growth in assets and the offices, the Company has had to hire
additional personnel to better service its customer base. These additions
combined with normal salary increases caused salary and benefits expense to
increase $152,913 or 29% from last year. The Company has also entered into a
rental agreement for another potential branch site in Aberdeen, in Monmouth
County. Rent on the newly opened locations and the potential branch site
location coupled with depreciation on improved facilities resulted in a $36,743
or 33% increase in occupancy expenses. The Company has also made an effort to
remain current with technology and to provide computer access for each employee.
These purchases as well as other purchases of equipment for new employees
increased equipment expense $8,947 or 12% from last year. Other expenses
increased from last year $68,743 or 23%. Much of this increase was related to
the growth of the Company which affected many areas, but especially supplies and
data processing costs. Marketing and business development costs increased
$11,358 due to grand opening costs of the Gaston Avenue and Arbor Glenn offices
and to continued promotions of home equity loans and several new banking
products.
Financial Condition
March 31, 1998 compared to December 31, 1997
Total assets increased $8.4 million or 6% from December 31, 1997. Total
loans decreased $349,952. Loans secured by real estate increased $1.3 million.
Commercial mortgages increased $1.7 million while construction loans decreased
$524,625. Activity varies in the marketplace depending upon seasonality and
competition. Loans to individuals for automobiles, declined by $689,658. The
current interest rates earned on these loans in relation to competition has
caused the Company to not be as aggressive in generating new automobile loans.
<PAGE>
Deposits increased $8.5 million or 6% during the first three months.
All deposit categories, with the exception of CDs over $100,000, increased with
the largest increase of $5.3 million in the time deposits less than $100,000
category.
Investment securities decreased $4.7 million. The increase in deposits
coupled with flat yield curves in the market and pending loan growth caused a
shift from longer term securities to short term investments.
Asset Quality
There were no loans past due 90 days or more and still accruing as of
March 31, 1998 and at December 31, 1997.
Loans in a non-accrual status totaled $59,443 at March 31, 1998 and
$62,632 at December 31, 1997 and represented .06% of total loans as of March 31,
1998 and December 31, 1997.
The Company had no other real estate owned at March 31, 1998.
Allowance for Possible Loan Losses
The allowance for possible loan losses is maintained at a level
considered adequate to provide for potential loan losses. The level of the
allowance is based on management's evaluation of potential losses in the
portfolio, after consideration of risk characteristics of the loans and
prevailing and anticipated economic conditions. The allowance is increased by
provisions charged to expense and reduced by charge-offs, net of recoveries.
At March 31, 1998, the allowance for loans losses was $1,027,248 and
represented .97% of total loans and 1,728% of non-performing loans compared to
an allowance for loan losses at December 31, 1997 of $982,198 or .92% of total
loans and 1,568% of non-performing loans at December 31, 1997.
Charge-offs for the first three months of 1998 totaled $20,250 compared
to $86,399 for the year ended December 31, 1997.
Capital Resources
Total Shareholders' Equity was $13,364,262 at March 31, 1998 compared
to $13,095,530 at December 31, 1997.
Under the FDIC Improvement Act of 1991, banks are required to maintain
a minimum ratio of total capital to risk based assets of 8% of which at least 4%
must be in the form of Tier I Capital (primarily Shareholders' Equity). The
following are the Company's capital ratios at the end of the periods indicated.
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
--------- ------------
<S> <C> <C>
Tier I Capital to Risk Weighted Assets 10.65% 11.89%
Total Capital to Risk Weighted Assets 11.50% 12.81%
Leverage Ratio 8.65% 8.72%
</TABLE>
<PAGE>
Liquidity
Cash and cash equivalents totaled $19.4 million at March 31, 1998 an
increase of $13.4 million.
The increase in Cash and Cash Equivalents was partially attributable to
an increase in deposits which contributed to an increase in cash used for
financing activities of $8.0 million. Demand deposits experienced the largest
increase for the three month period of $3.9 million.
The increase in Cash and Cash Equivalents was also partially
attributable to a decrease in investment activities, which produced $4.9 million
of available cash. Those funds were invested in short term investments awaiting
pending future loan growth.
<PAGE>
PART II-OTHER INFORMATION
Item 1 - Legal Proceedings
The Company is party in the ordinary course of business to
litigation involving collection matters, contract claims and
other miscellaneous causes of action arising from its
business. Management does not consider that such proceedings
depart from usual routine litigation and, in its judgment, the
Company's financial position and results of operations will
not be affected materially by such proceedings.
Item 2 - Changes in Securities
None.
Item 3 - Defaults upon Senior Securities
None.
Item 4 - Submission of Matters to a Vote of Security Holders
Proxies were mailed to shareholders of the Company on March
31, 1998 for the Annual Meeting of Shareholders on April 30,
1998. The purpose was the election of Directors for a term of
three years.
Following are the results of the voting:
The following candidates were nominated for a term to
continue to the 2001 Annual Meeting.
<TABLE>
<CAPTION>
Votes For Votes Withheld
--------- --------------
<S> <C> <C>
Bernard Bernstein 1,110,272 144
Robert P. Corcoran 1,110,416 0
Mark S. Gold, MD 1,110,416 0
Raymond L. Hughes 1,110,272 144
S. Tucker S. Johnson 1,110,316 100
</TABLE>
Item 5 - Other Information
None.
Item 6 - Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
3(i) Articles of Incorporation
Certificate of Incorporation of the Company is incorporated by
reference to the Company's Registration Statement on Form SB-2
File Number 333-12305 Amendment No. 2, Filed November 4, 1996.
3(ii) Bylaws
Bylaws of the Company are incorporated by reference to the
Company's Registration Statement on Form SB-2 File No.
333-12305 Amendment No. 2, Filed November 4, 1996.
<PAGE>
(27) Financial Data Schedule
(b) Reports on Form 8-K
A report on Form 8-K was filed during the first quarter of
1998 under Item 5 "Other Events."
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SVB FINANCIAL SERVICES, INC.
(Registrant)
Dated: May 7, 1998 By: /s/Keith B. McCarthy
--------------------
Keith B. McCarthy
Executive Vice President
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 6,279,429
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 12,400,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 11,599,745
<INVESTMENTS-CARRYING> 17,032,171
<INVESTMENTS-MARKET> 17,058,242
<LOANS> 106,120,722
<ALLOWANCE> 1,027,248
<TOTAL-ASSETS> 156,907,509
<DEPOSITS> 142,384,336
<SHORT-TERM> 0
<LIABILITIES-OTHER> 716,546
<LONG-TERM> 442,365
0
0
<COMMON> 5,767,614
<OTHER-SE> 7,596,648
<TOTAL-LIABILITIES-AND-EQUITY> 156,907,509
<INTEREST-LOAN> 2,363,603
<INTEREST-INVEST> 467,670
<INTEREST-OTHER> 84,865
<INTEREST-TOTAL> 2,916,138
<INTEREST-DEPOSIT> 1,318,754
<INTEREST-EXPENSE> 1,328,347
<INTEREST-INCOME-NET> 1,587,791
<LOAN-LOSSES> 65,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,275,461
<INCOME-PRETAX> 392,539
<INCOME-PRE-EXTRAORDINARY> 392,539
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 233,634
<EPS-PRIMARY> .09
<EPS-DILUTED> .09
<YIELD-ACTUAL> 8.34
<LOANS-NON> 59,443
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 982,198
<CHARGE-OFFS> 20,250
<RECOVERIES> 300
<ALLOWANCE-CLOSE> 1,027,248
<ALLOWANCE-DOMESTIC> 1,027,248
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
