UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(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, 2000
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: 000-22407
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.)
58-72 East Main Street, Somerville, New Jersey 08876
- ---------------------------------------------- ------------
(Address of principal executive officers) (Zip Code)
(908) 541-9500
(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 May 8,2000, there were 2,958,526 shares of common stock, $2.09 par value
outstanding.
<PAGE>
SVB FINANCIAL SERVICES, INC.
FORM 10-QSB
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 2 - Changes in Securities
ITEM 3 - Defaults Upon Senior Securities
ITEM 4 - Submission of Matters to a Vote of Security Holders
ITEM 5 - Other Information
ITEM 6 - Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
BALANCE SHEET March 31, December 31,
March 31, 2000 and December 31, 1999 2000 1999
-------------- ------------------
(Unaudited)
<S> <C> <C>
(in thousands)
ASSETS
Cash & Due from Banks $ 10,644 $ 7,028
Federal Funds Sold 8,875 2,400
Other Short Term Investments 36 -
-------------- ------------------
Total Cash and Cash Equivalents 19,555 9,428
-------------- ------------------
Interest Bearing Time Deposits 6,980 5,283
Securities
Available for Sale, at Fair Value 25,755 26,377
Held to Maturity 4,049 5,122
Equity Securities 839 839
-------------- ------------------
Total Securities 30,643 32,338
-------------- ------------------
Loans 159,374 153,151
Allowance for Loan Losses (1,611) (1,550)
Unearned Income (172) (176)
-------------- ------------------
Net Loans 157,591 151,425
-------------- ------------------
Premises & Equipment, Net 4,898 4,789
Other Assets 3,113 2,844
-------------- ------------------
Total Assets $222,780 $206,107
============== ==================
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
Non-interest Bearing $ 35,733 $ 32,020
NOW Accounts 29,916 27,025
Savings 17,790 16,618
Money Market Accounts 25,169 25,446
Time
Greater than $100,000 13,878 13,486
Less than $100,000 83,280 74,967
-------------- ------------------
Total Deposits 205,766 189,562
-------------- ------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Obligation Under Capital Lease 431 432
Other Liabilities 945 749
-------------- ------------------
Total Liabilities 207,142 190,743
-------------- ------------------
SHAREHOLDERS' EQUITY
Common Stock $2.09 Par Value: 20,000,000 6,183 6,158
Shares Authorized; 2,958,526 Shares in 2000 and
2,946,556 Shares in 1999 Issued and Outstanding
Additional Paid-in Capital 6,536 6,496
Retained Earnings 3,489 3,215
Accumulated Other Comprehensive Loss (570) (505)
-------------- ------------------
Total Shareholders' Equity 15,638 15,364
-------------- ------------------
Total Liabilities and Shareholders' Equity $222,780 $206,107
============== ==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended
For the Period Ended March 31, 2000 1999
(in thousands) ------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C>
INTEREST INCOME
Loans $ 3,409 $ 2,622
Securities Available for Sale 395 312
Securities Held to Maturity 74 204
Dividends on Equity Securities 10 0
Other Short Term Investments 0 8
Interest Bearing Time Deposits 88 63
Federal Funds Sold 73 84
----------------- ---------------
Total Interest Income 4,049 3,293
----------------- ---------------
INTEREST EXPENSE
Deposits 1,735 1,468
Federal Funds Purchased 0 1
Obligation Under Capital Lease 9 9
----------------- ---------------
Total Interest Expense 1,744 1,478
----------------- ---------------
Net Interest Income 2,305 1,815
PROVISION FOR LOAN LOSSES 95 80
----------------- ----------------
Net Interest Income after Provision For Loan Losses 2,210 1,735
----------------- ---------------
OTHER INCOME
Service Charges on Deposit Accounts 123 80
Gains on the Sale of Securities Available for Sale 0 1
Gains on the Sale of Loans 66 33
Other Income 54 51
----------------- ---------------
Total Other Income 243 165
----------------- ---------------
OTHER EXPENSE
Salaries and Employee Benefits 997 743
Occupancy Expense 300 203
Equipment Expense 107 101
Other Expenses 621 437
----------------- ---------------
Total Other Expense 2,025 1,484
----------------- ---------------
Income Before Provision for Income Taxes 428 416
Provision for Income Taxes 154 148
----------------- ---------------
Net Income $ 274 $ 268
================= ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
EARNINGS PER SHARE - Basic (1) $0.09 $0.09
================= ===============
EARNINGS PER SHARE - Diluted (1) $0.09 $0.09
================= ===============
</TABLE>
(1) Amounts have been restated for stock splits and stock dividends.
<PAGE>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
For the Period Ended March 31,
<TABLE>
<CAPTION>
For the Three Months Ended
2000 1999
-------------------------------------
(in thousands) (Unaudited) (Unaudited)
<S> <C> <C>
Net Income $ 274 $ 268
Other Comprehensive Income, Net of Tax
Unrealized Losses Arising in the Period (65) (71)
---------------- ---------------
Comprehensive Income $ 209 $ 197
================ ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
STATEMENTS OF CASH FLOW
For the Period Ended March 31, 2000 1999
--------------------------------------
(Unaudited) (Unaudited
<S> <C> <C>
(in thousands)
OPERATING ACTIVITIES
Net Income $ 274 $ 268
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Provision for Loan Losses 95 80
Depreciation and Amortization 131 103
Accretion/(Amortization) of Securities Discount 5 (26)
Gains on the Sale of Securities Available for Sale 0 (1)
Gains on the Sale of Loans (66) (33)
Increase in Other Assets (238) (595)
Increase in Other Liabilities 196 139
(Decrease)/Increase in Unearned Income (27) 23
---------------- ------------------
Net Cash Provided By (Used for) Operating Activities 370 (42)
---------------- ------------------
INVESTING ACTIVITIES
Increase in Interest Bearing Time Deposits (1,697) (901)
Proceeds from Sale of Securities Available for Sale 0 2,510
Proceeds from Maturities of Securities
Available for Sale 1,511 2,706
Held to Maturity 1,072 7,369
Purchases of Securities
Available for Sale (993) (6,980)
Held to Maturity 0 (1,804)
Increase in Loans, Net (6,168) (4,997)
Capital Expenditures (236) (931)
---------------- ------------------
Net Cash Used for Investing Activities (6,511) (3,028)
---------------- ------------------
FINANCING ACTIVITIES
Net Increase in Demand Deposits 6,604 10,032
Net Increase/(Decrease) in Savings Deposits 1,172 (119)
Net Decrease in Money Market Deposits (277) (782)
Net Increase in Time Deposits 8,705 2,032
Decrease in Obligation Under Capital Lease (1) (1)
Proceeds from Issuance of Common Stock, Net 65 5
---------------- ------------------
Net Cash Provided by Financing Activities 16,268 11,167
---------------- ------------------
Increase in Cash and Cash Equivalents 10,127 8,097
Cash and Cash Equivalents, Beginning of Year 9,428 19,648
---------------- ------------------
Cash and Cash Equivalents, End of Period $ 19,555 $ 27,745
================ ==================
</TABLE>
<PAGE>
<TABLE>
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
<S> <C> <C>
Cash Paid During the Year for Interest $ 1,791 $ 1,490
================ ==================
Cash Paid During the Year for Federal Income Taxes $ 50 $ 30
================ ==================
</TABLE>
<PAGE>
SVB FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000 (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.
Effective November 19, 1999, the Company paid a 5% stock dividend. 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, 2000 are not necessarily indicative of the results that may be expected for
the year ended December 31, 2000.
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, 2000 and December 31, 1999 the composition of outstanding
loans is summarized as follows:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
-------------------- ---------------
<S> <C> <C>
(in thousands)
Secured by Real Estate:
Residential Mortgage $ 42,484 $ 41,727
Commercial Mortgage 45,771 48,349
Construction 10,932 11,943
Commercial and Industrial 41,285 32,628
Loans to Individuals for Automobiles 7,250 7,907
Loans to Individuals 11,588 10,062
Other Loans 64 535
------------ ------------
$159,374 $153,151
============ ============
</TABLE>
There were no loans restructured during 2000 or 1999. There were no
loans past due 90 days or more and still accruing at March 31, 2000 or at
December 31, 1999. Loans in a non-accrual status totaled $498,000 at March 31,
2000 and $692,000 at December 31, 1999.
<PAGE>
3. Allowance for Loan Losses
The allowance for 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 loan losses
is as follows:
<TABLE>
<CAPTION>
Three Months
Ended Year Ended
March 31, December 31,
2000 1999
(in thousands) -------------- ----------------
<S> <C> <C>
Balance January 1, $ 1,550 $ 1,211
Provision Charged to Operations 95 440
Charge Offs (37) (115)
Recoveries 3 14
------------- ----------------
Balance End of Period $ 1,611 $ 1,550
============= ================
</TABLE>
4. New Accounting Pronouncement
In June 1998, SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activity." was issued. Subsequent to this statement, SFAS No. 137 was
issued, which amended the effective date of SFAS No. 133 to be all fiscal
quarters of all fiscal years beginning after June 15, 2000. Based on the
Company's minimal use of derivatives at the current time, management does not
anticipate the adoption of SFAS No. 133 will have a significant impact on
earnings or the financial position of the Company. However, the impact from
adopting SFAS No. 133 will depend on the nature and purpose of the derivative
instruments in use by the Company at that time.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Management of SVB Financial Services, Inc. (the "Company") is not aware
of any known trends, events or uncertainties that will have or are reasonably
likely to have a material effect on the Company's liquidity, capital resources
or results of operations. The following discussion and analysis should be read
in conjunction with the detailed information and consolidated financial
statements, including notes thereto, included elsewhere in this report. The
consolidated financial condition and results of operations of the Company are
essentially those of the Bank. Therefore, the analysis that follows is directed
to the performance of the Bank. Such financial condition and results of
operations are not intended to be indicative of future performance.
In addition to historical information, this discussion and analysis
contains forward-looking statements. The forward-looking statements contained
herein are subject to certain risks and uncertainties that could cause actual
results to differ materially from those projected in the forward-looking
statements. Important factors that might cause such a difference include, but
are not limited to, those discussed in the section entitled "Management's
Discussion and Analysis of Financial Condition and Results of Operations."
Readers are cautioned not to place undue reliance on these forward-looking
statements, which reflect management's analysis only as the date hereof. The
Company undertakes no obligation to publicly revise or update these
forward-looking statements to reflect events or circumstances that arise after
the date hereof.
<PAGE>
Non Banking Products and Affiliations
The Company has formed a joint venture subsidiary, Somerset Valley
Financial LLC, with International Planning Alliance of Somerset, New Jersey.
This arrangement will allow the Bank to share in revenues through the sale of
life insurance, medical insurance, financial planning, executive benefits and
retirement products. Currently, five Bank employees are licensed to sell
insurance.
Additionally, the Company has entered into an agreement with National
Discount Brokers to provide an Internet link that will enable our customers to
carry out discounted trading from our web site.
Results of Operation
Net income for the first three months of 2000 was $274,000, an increase
of $6,000 or 2% as compared to the same period in 1999. Earnings per share-Basic
were $.09 in 2000 as well as $.09 in 1999. Earnings per share-Diluted were $.09
in 2000 and $.09 in 1999.
A detailed discussion of the major components of net income follows:
Net Interest Income
Net interest income for the first three months of 1999 was $2.3 million
compared to $1.8 million in 1999, an increase of $490,000 or 27%.
Almost all of the increase can be attributed to an increase in average
earnings assets. Average earning assets for the first three months of 2000 were
$197.6 million an increase of $25.1 million or 15% from the first three months
of 1999. Loans averaged $154.8 million during the three months of 2000, an
increase of $30.4 million from the same period last year. The increase in loan
balances caused interest income to increase $685,000. Partially offsetting this
increase, securities averaged $31.7 million, a decrease of $3.8 million from
1999. The yield on loans increased from 8.54% in 1999 to 8.86% for the first
quarter of 2000. This was the result of an increase of 125 basis points in the
prime rate since the first quarter of 1999. The increase in yield caused
interest income on loans to increase $103,000. Overall, interest income
increased $757,000. The yield on earning assets was 8.24% in 2000 and 7.74% for
1999.
The overall cost of interest-bearing liabilities decreased from 4.30%
to 4.27%. Total interest bearing deposits increased $24.8 million during the
three months of 2000 to $163.8 million, of which time deposits accounted for 43%
of this increase. The increase in deposits caused interest expense to increase
$247,000. Overall, interest expense increased $266,000 and the cost of funding
earning assets increased from 3.47% in 1999 to 3.55% in 2000.
The net result of the change in net interest income for the first three
months of 2000 versus the first three months of 1999 was an increase of
$490,000. The net interest margin increased 42 basis points from a 4.27% to a
4.69%.
Provision for Loan Losses
The provision for loan losses was $95,000 in the first three months of
2000 as compared to $80,000 in the first three months of 1999. The increase in
provision can be attributed to growth in loans of $32.9 million since March 31,
1999.
<PAGE>
Other Income
The Company has placed an emphasis on improving its fee income over the
past twelve months.
During the first three months of 2000, other income increased $78,000
or 47% over the same period in 1999. Service charges on deposit accounts
increased $43,000 or 54% from the same period last year. The growth in the
number of commercial and consumer checking accounts as well as a change in the
service charge pricing structure. Foreign transaction fees at the Company's ATM
machines and service charge on NOW and money market accounts accounted for 21%
of the increase in service charges respectively.
Gains on the sale of SBA loans increased $20,000. The Company is a
preferred SBA lender and, as such, 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 Company also earned $13,000 for the sale of
mortgage loans. Overall, gains on the sale of loans increased $33,000. These
amounts can vary greatly from quarter to quarter and from year to year.
Additionally, fees related to the servicing of SBA loans as described increased
19% over the same period for last year.
Other income increased $3,000 or 6% compared to 1999.
Other Expense
Other expenses for the three months ended March 31, 2000 increased
$541,000 or 36% from the same period in 1999. During the first quarter of 2000,
the Company opened two new branches, one located on State Highway 34 in Aberdeen
and one on Allen Road in Bernards. Expenses directly charged to the opening of
these branches exceeded $175,000 in the first quarter of 2000. In addition,
total assets have grown $26.1 million or 13% since March 31, 1999. Because of
the growth in assets and the addition of branches, the Company has also had to
hire additional lending and back-office personnel to better service its customer
base. These additions combined with normal salary increases caused salary and
benefits expense to increase $254,000 or 34% from last year. Rent on the newly
opened locations and the relocation of the executive offices and operation
center the last quarter of 1999 coupled with increased depreciation on other
facilities resulted in a $97,000 or 48% increase in occupancy expenses. Other
expense increased $184,000 or 42% over the same period last year. Included in
this are the following items. Outside services and data processing increased by
$85,000 or 46% over the first quarter. Purchases of supplies for new employees
and the additional branches increased supplies expense $12,000 or 26% from last
year. Advertising and business development expense increased $42,000 or 107%.
Most of this increase was related to the opening of the two new branches during
the first quarter of 2000.
Financial Condition
March 31, 2000 compared to December 31, 1999
Total assets increased $16.7 million or 8% from December 31, 1999.
Total loans increased $6.2 million. Loans secured by real estate decreased $2.8
million. Most of this variance was due to a decrease of $2.6 million in
commercial mortgages, as a result of current competition and market conditions.
Offsetting this, other commercial loans and loans to individuals increased $8.7
million and $400,000 respectively.
<PAGE>
Deposits increased $16.2 million or 9% during the first three months of
2000. Most categories of deposits improved during the quarter with certificates
of deposits less than $100,000 growing by $8.3 million followed by NOW accounts
growing by $2.9 million. The Company normally pays above market rates on
certificates of deposit opened during the "grand opening" period of its new
branches.
Investment securities decreased $1.7 million.
<PAGE>
Asset Quality
There were no loans past due 90 days or more and still accruing as of
March 31, 2000 or December 31, 1999.
Loans in a non-accrual status totaled $498,000 at March 31, 2000 and
$692,000 at December 31, 1999 and represented .31% of total loans as of March
31, 2000 and .45% as of December 31, 1999.
The Company had no other real estate owned at March 31, 2000.
Allowance for Loan Losses
The allowance for 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, 2000, the allowance for loans losses was $1,611,000 and
represented 1.01% of total loans and 323.49% of non-performing loans compared to
an allowance for loan losses at December 31, 1999 of $1,550,000 or 1.01% of
total loans and 223.99% of non-performing loans at December 31, 1999.
Charge-offs for the first three months of 2000 totaled $37,000 compared
to $41,000 for the quarter ended March 31, 1999.
Capital Resources
Total Shareholders' Equity was $15,638,000 at March 31, 2000 compared
to $15,364,000 at December 31, 1999.
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.
March 31, December 31,
2000 1999
--------------- --------------
Tier I Capital to Risk Weighted Assets 8.86% 9.21%
Total Capital to Risk Weighted Assets 9.80% 10.17%
Leverage Ratio 7.14% 7.56%
Liquidity
Cash and Cash Equivalents totaled $19.5 million at March 31, 2000 an
increase of $10.1 million, since December 31, 1999.
The increase in Cash and Cash Equivalents was primarily attributable to
an increase in deposits which contributed to an increase in cash provided by
financing activities of $16.3 million. Certificate of deposits and demand
deposits experienced the largest increases for the three month period of $8.7
million and $6.6 million respectively.
An increase in loans resulted in net cash used for investing activities
of $6.5 million.
<PAGE>
ITEM 3 - MARKET RISK
The Company's market risk is primarily its exposure to interest rate
risk. Interest rate risk is the effect that changes in interest rates have in
future earnings. The principal objective in managing interest rate risk is to
maximize net interest income within the acceptable levels of risk that have been
previously established by policy.
Please refer to pages 28-30 "Interest Rate Sensitivity Analysis" in the
1999 Annual Report. There has been no material changes in market risk since the
date of that report.
<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
30, 2000 for the Annual Meeting of Shareholders on April 27,
2000. The purpose was the election of five of the fourteen
Directors for a term of three years, approval of SVB Financial
Services, Inc. 2000 Incentive Stock Option Plan and approval
of SVB Financial Services, Inc. 2000 Directors Stock Option
Plan.
Following are the results of the voting: The following
candidates were nominated for a term to continue to the 2003
Annual Meeting.
<TABLE>
<CAPTION>
Votes For Votes Withheld
--------- --------------
<S> <C> <C>
John K. Kitchen 2,571,691 1,722
Anthony J. Santye, Jr. 2,542,665 30,748
G. Robert Santye 2,542,665 30,748
Herman C. Simonse 2,571,901 1,512
Donald R. Tourville 2,571,901 1,512
Approval of SVB Financial Services, Inc. 2000 Incentive Stock Option Plan.
Votes For Votes Against Abstain
--------- ------------- ----------
2,163,702 119,867 2,074
Approval of SVB Financial Services, Inc. 2000 Directors Stock Option Plan.
Votes For Votes Against Abstain
--------- ------------- -----------
1,655,391 628,178 2,074
</TABLE>
Item 5 - Other Information
On July 6, 1998, the common stock of the Company began trading
on the Nasdaq National Market, under the trading symbol SVBF.
On March 31, 2000, the closing bid of the Company's common
stock was $8.938 per share.
Effective in July 1999, the Company has a web site and can be
located on www.somersetvalleybank.com.
In September 1999, the Bank became a member of the Federal
Home Loan Bank.
<PAGE>
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.
(b) Form 8-K
There has been no Form 8-K filed during the first quarter of
2000.
(27) Financial Data Schedule
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 8, 2000 By: /s/ Keith B. McCarthy
------------------------
Keith B. McCarthy
Executive Vice President
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 10,644
<INT-BEARING-DEPOSITS> 6,980
<FED-FUNDS-SOLD> 8,875
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 26,594
<INVESTMENTS-CARRYING> 4,049
<INVESTMENTS-MARKET> 3,949
<LOANS> 159,374
<ALLOWANCE> 1,611
<TOTAL-ASSETS> 222,780
<DEPOSITS> 205,766
<SHORT-TERM> 0
<LIABILITIES-OTHER> 945
<LONG-TERM> 431
0
0
<COMMON> 6,183
<OTHER-SE> 9,455
<TOTAL-LIABILITIES-AND-EQUITY> 222,780
<INTEREST-LOAN> 3,409
<INTEREST-INVEST> 479
<INTEREST-OTHER> 161
<INTEREST-TOTAL> 4,049
<INTEREST-DEPOSIT> 1,735
<INTEREST-EXPENSE> 1,744
<INTEREST-INCOME-NET> 2,305
<LOAN-LOSSES> 95
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2025
<INCOME-PRETAX> 428
<INCOME-PRE-EXTRAORDINARY> 274
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 274
<EPS-BASIC> .09
<EPS-DILUTED> .09
<YIELD-ACTUAL> 4.69
<LOANS-NON> 498
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,550
<CHARGE-OFFS> (37)
<RECOVERIES> 3
<ALLOWANCE-CLOSE> 1,611
<ALLOWANCE-DOMESTIC> 1,611
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
