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 September 30, 2000
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number: 000-22407
SVB Financial Services, Inc.
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(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 November 7, 2000, there were 3,106,032 shares of common stock, $2.09 par
value outstanding. The number of shares outstanding has been adjusted for a
declared stock dividend and the Company repurchase of 400 shares of stock.
1
<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 6 - Exhibits and Reports on Form 8-K
SIGNATURES
2
<PAGE>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
September 30, 2000 and December 31, 1999
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------------ -------------------
(Unaudited)
<S> <C> <C>
(in thousands)
ASSETS
Cash & Due from Banks $ 10,605 $ 7,028
Federal Funds Sold 3,725 2,400
Other Short Term Investments 67 -
------------------ -------------------
Total Cash and Cash Equivalents 14,397 9,428
------------------ -------------------
Interest Bearing Time Deposits 7,480 5,283
Securities
Available for Sale, at Fair Value 30,106 26,377
Held to Maturity 4,445 5,122
Equity Securities 839 839
------------------ -------------------
Total Securities 35,390 32,338
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Loans 169,156 153,151
Allowance for Loan Losses (1,751) (1,550)
Unearned Income (159) (176)
------------------ -------------------
Net Loans 167,246 151,425
------------------ -------------------
Premises & Equipment, Net 4,749 4,789
Other Assets 3,348 2,844
Total Assets $232,610 $206,107
================== ===================
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
Non-interest Bearing $ 33,864 $ 32,020
NOW Accounts 33,508 27,025
Savings 16,860 16,618
Money Market Accounts 23,965 25,446
Time
Greater than $100,000 16,842 13,486
Less than $100,000 89,410 74,967
------------------ -------------------
Total Deposits 214,449 189,562
------------------ -------------------
Obligation Under Capital Lease 427 432
Other Liabilities 1,081 749
------------------ -------------------
Total Liabilities 215,957 190,743
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SHAREHOLDERS' EQUITY
Common Stock $2.09 Par Value: 20,000,000 6,184 6,158
Shares Authorized; 2,958,526 Shares in 2000 and
2,805,824 Shares in 1999 Issued and Outstanding
Additional Paid-in Capital 6,536 6,496
Retained Earnings 4,249 3,215
Accumulated Other Comprehensive Loss (316) (505)
------------------ -------------------
Total Shareholders' Equity 16,653 15,364
------------------ -------------------
Total Liabilities and Shareholders' Equity $232,610 $206,107
================== ===================
</TABLE>
3
<PAGE>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Period Ended September 30,
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
2000 1999 2000 1999
-------------- --------------- ---------------- -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
(in thousands)
INTEREST INCOME
Loans $ 3,859 $ 3,072 $10,985 $ 8,500
Securities Available for Sale 440 394 1,254 1,072
Securities Held to Maturity 73 100 216 428
Dividends on Equity Securities 20 3 40 3
Other Short Term Investments 1 1 2 10
Interest Bearing Time Deposits 117 94 311 233
Federal Funds Sold 98 104 237 262
------------ --------------- ---------------- -------------
Total Interest Income 4,608 3,768 13,045 10,508
------------ --------------- ---------------- -------------
INTEREST EXPENSE
Deposits 2,041 1,548 5,651 4,477
Federal Funds Purchased 1 1 1 3
Obligation Under Capital Lease 9 10 27 28
------------ --------------- ---------------- -------------
Total Interest Expense 2,051 1,559 5,679 4,508
------------ --------------- ---------------- -------------
Net Interest Income 2,557 2,209 7,366 6,000
PROVISION FOR LOAN LOSSES 80 150 260 330
------------ --------------- ---------------- -------------
Net Interest Income after Provision For Loan Losses 2,477 2,059 7,106 5,670
------------ --------------- ---------------- -------------
OTHER INCOME
Service Charges on Deposit Accounts 147 105 405 277
Gains on the Sale of Loans 33 100 105 184
Losses on the Sale of Securities Available for Sale 0 (3) 0 (8)
Other Income 63 27 175 117
------------ --------------- ---------------- -------------
Total Other Income 243 229 685 570
------------ --------------- ---------------- -------------
OTHER EXPENSE
Salaries and Employee Benefits 1,022 832 3,053 2,368
Occupancy Expense 309 216 921 629
Equipment Expense 127 110 361 317
Other Expenses 584 456 1,807 1,386
Total Other Expense 2,042 1,614 6,142 4,700
------------ --------------- ---------------- -------------
Income Before Provision for Income Taxes 678 674 1,649 1,540
Provision for Income Taxes 255 258 615 575
------------ --------------- ---------------- -------------
Net Income $ 423 $ 416 $ 1,034 $ 965
============ =============== ================ =============
EARNINGS PER SHARE - Basic (1) $ 0.13 $ 0.13 $ 0.33 $ 0.31
============ =============== ================ =============
EARNINGS PER SHARE - Diluted (1) $ 0.13 $ 0.13 $ 0.32 $ 0.30
============ =============== ================ =============
</TABLE>
(1) Amounts have been restated for stock splits and stock dividends.
4
<PAGE>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
For the Period Ended September 30,
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
2000 1999 2000 1999
----------- ----------- ----------- -----------
(in thousands) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net Income $ 423 $ 416 $1,034 $ 965
Other Comprehensive Income, Net of Tax
Unrealized Gains/(Losses) Arising in the Period 186 (23) 189 (350)
----------- ---------------- ---------------- ---------------
Comprehensive Income $ 609 $ 393 $1,223 $ 615
=========== ================ ================ ===============
</TABLE>
5
<PAGE>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Period Ended September 30,
<TABLE>
<CAPTION>
2000 1999
------------------- ------------------
(Unaudited) (Unaudited)
(in thousands)
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 1,034 $ 965
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Provision for Loan Losses 260 330
Depreciation and Amortization 430 341
Amortization/(Accretion) of Securities Discount 3 (35)
Losses on the Sale of Securities Available for Sale 0 8
Gains on the Sale of Loans (105) (184)
Increase in Other Assets (612) (95)
Increase in Other Liabilities 332 86
Increase in Unearned Income 17 97
------------------- ------------------
Net Cash Provided By Operating Activities 1,359 1,513
------------------- ------------------
INVESTING ACTIVITIES
Increase in Interest Bearing Time Deposits (2,197) (2,390)
Proceeds from Sale of Securities Available for Sale 0 6,512
Proceeds from Maturities of Securities
Available for Sale 2,535 4,302
Held to Maturity 1,153 13,233
Purchases of Securities
Available for Sale (5,982) (16,845)
Held to Maturity (475) (5,296)
Equity Securities 0 (589)
Increase in Loans, Net (15,993) (24,383)
Capital Expenditures (379) (1,462)
------------------- ------------------
Net Cash Used for Investing Activities (21,338) (26,918)
------------------- ------------------
FINANCING ACTIVITIES
Net Increase in Demand Deposits 8,327 10,265
Net Increase in Savings Deposits 242 1,829
Net (Decrease)/Increase in Money Market Deposits (1,481) 2,320
Net Increase in Time Deposits 17,799 706
Decrease in Obligation Under Capital Lease (5) (4)
Proceeds from the Issuance of Common Stock, Net 66 154
------------------- ------------------
Net Cash Provided by Financing Activities 24,948 15,270
------------------- ------------------
Increase/(Decrease) in Cash and Cash Equivalents 4,969 (10,135)
Cash and Cash Equivalents, Beginning of Year 9,428 19,648
------------------- ------------------
Cash and Cash Equivalents, End of Period $ 14,397 $ 9,513
=================== ==================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash Paid During the Period for Interest $ 5,606 $ 4,502
=================== ==================
Cash Paid During the Period for Federal Income Taxes $ 620 $ 540
=================== ==================
</TABLE>
6
<PAGE>
SVB FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 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 nine months ended
September 30, 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 September 30, 2000 and December 31, 1999 the composition of
outstanding loans is summarized as follows:
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
--------------- ----------------
<S> <C> <C>
(in thousands)
Secured by Real Estate:
Residential Mortgage $ 45,893 $ 41,727
Commercial Mortgage 43,358 48,349
Construction 11,402 11,943
Commercial and Industrial 44,651 32,628
Loans to Individuals for Automobiles 7,552 7,907
Loans to Individuals 15,434 10,062
Other Loans 866 535
---------- ----------
$169,156 $153,151
======== =========
</TABLE>
There were no loans restructured during 2000 or 1999. Loans past due 90
days or more and still accruing totaled $14,000 at September 30, 2000 and there
were no loans past due 90 days or more at December 31, 1999. Loans in a
non-accrual status totaled $527,000 at September 30, 2000 and $692,000 at
December 31, 1999.
7
<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:
Nine Months
Ended Year Ended
September 30, December 31,
(in thousands) 2000 1999
--------- ----------
Balance January 1, $ 1,550 $ 1,211
Provision Charged to Operations 260 440
Charge Offs (74) (115)
Recoveries 15 14
------- -------
Balance End of Period $ 1,751 $ 1,550
======= =======
4. New Accounting Pronouncement
We have adopted the provisions of SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activity" as amended by SFAS No. 137 and
SFAS No. 138. Based on the Company's minimal use of derivatives at the current
time, management does not anticipate the adoption fo 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, as amended, will depend on the
nature and purpose of the derivative instruments in use by the Company at that
time.
5. Stock Dividend
On October 27, 2000, the Company declared a 5% stock dividend to
shareholders of record as of November 7, 2000. Net income per share and weighted
average shares outstanding have been restated to reflect the stock dividend.
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.
8
<PAGE>
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.
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 website. The Company shares in revenue
based on the number of users as well as transaction volume.
Results of Operation
Net income for the first nine months of 2000 was $1,034,000, an
increase of $69,000 or 7% as compared to the same period in 1999. Earnings per
share-Basic were $.33 in 2000 and $.31 in 1999. Earnings per share- Diluted were
$.32 in 2000 and $.30 in 1999.
A detailed discussion of the major components of net income follows:
Net Interest Income
Net interest income for the first nine months of 2000 was $7.4 million
compared to $6.0 million in 1999, an increase of $1.4 million or 23%.
Average earning assets for the first nine months of 2000 were $205.9
million an increase of $25.0 million or 14% from the first nine months of 1999.
Almost all of this increase could be attributed to loans which averaged $161.8
million during the nine months of 2000, an increase of $29.0 million or 22% from
the same period last year. The increase in loan balances caused interest income
to increase $2.0 million. The yield on loans increased from 8.56% in September
1999 to 9.07% for the first nine months of 2000. This was the result of an
increase of 125 basis points in the prime rate since the third quarter of 1999.
The increase in yield caused interest income on loans to increase $532,000.
Overall, interest income increased $2.5 million. The yield on earning assets was
8.46% in 2000 and 7.77% for 1999.
The overall cost of interest-bearing liabilities increased from 4.14%
to 4.44%. Average interest bearing deposits increased $25.6 million during the
nine months of 2000 to $170.5 million, of which time deposits and NOW accounts
accounted for 44% and 32% of this increase, respectively. The increase in
deposits caused interest expense to increase $745,000. The increase in market
rates, increased competition for deposits and promotional CDs offered for the
two new branches all contributed to an increase in interest expense of $430,000
relating to rate. Overall, interest expense increased $1.2 million and the cost
of funding earning assets increased from 3.33% in 1999 to 3.68% in 2000.
The net result of the change in net interest income for the first nine
months of 2000 versus the first nine months of 1999 was an increase of $1.4
million. The net interest margin increased 35 basis points from 4.43% to 4.78%.
9
<PAGE>
Provision for Loan Losses
The provision for loan losses was $260,000 in the first nine months of
2000 and $330,000 for the same period in 1999. Even though provision decreased,
overall, provision for loan loss increased as a percentage of loans to 1.04%.
Other Income
The Company continues to place an emphasis on improving its fee income.
During the first nine months of 2000, total other income increased $115,000 or
20% over the same period in 1999.
Service charges on deposit accounts increased $128,000 or 46% 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
contributed to the additional service charge income. Foreign transaction fees at
the Company's ATM machines and overdraft fees accounted for 22% and 21% of the
increase in service charges, respectively.
Gains on the sale of SBA loans decreased $68,000. 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. Gains on the sale of mortgage loans decreased
$11,000 from last year primarily due to the fact that the Bank now recognizes
origination fees relating to FNMA loans instead of selling them in the market.
Overall, gains on the sale of loans decreased $79,000. Offsetting the decrease
in loan sales, fees related to the servicing of SBA loans and origination of
mortgage loans as described above increased 30% and 19% respectively over the
same period for last year.
Other income increased $58,000 or 50% compared to 1999. Visa/MasterCard
processing income represents 26% of the increase. Income from insurance
subsidiary was $10,000 representing 18% of this increase.
Other Expense
Other expenses for the nine months ended September 30, 2000 increased
$1.4 million or 31% 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 $556,000 in the nine months of 2000. In
addition, total assets have grown $31.4 million or 16% since September 30, 1999.
Because of the growth in assets and the addition of branches, the Company has
also 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 $685,000 or 29% from last year. Rent on the newly opened
locations and the relocation of the executive offices and operation center in
the last quarter of 1999 coupled with increased depreciation on other facilities
resulted in a $292,000 or 46% increase in occupancy expenses. Other expenses
increased $421,000 or 30% over the same period last year. Included in this are
the following items. Outside services and data processing increased by $213,000
or 38% over the nine months last year. Included in this increase are website
expenses of $28,000. Purchases of supplies for new employees and the additional
branches increased supplies expense $51,000 or 34% from last year. Advertising
and business development expenses increased $49,000 or 31%. Most of this
increase was related to the opening of the two new branches during the first
quarter of 2000. FDIC assessment increased $30,000 or 202% over the same period
as last year.
10
<PAGE>
Financial Condition
September 30, 2000 compared to December 31, 1999
Total assets increased $26.5 million or 13% from December 31, 1999.
Total loans increased $16.0 million. Loans secured by real estate decreased $1.4
million. Offsetting this, other commercial loans increased $12.0 million as a
result of increased demand and strong economic growth in the central New Jersey
area. Loans to individuals increased $5.4 million.
Deposits increased $24.9 million or 13% during the first nine months of
2000. Most categories of deposits improved during this period with certificates
of deposits less than $100,000 growing by $14.4 million followed by NOW accounts
increasing by $6.5 million. The Company prices its certificates of deposit
aggressively in relation to its competition offering promotional rates for the
grand openings of its two new branches and a 7% certificate during the third
quarter.
Investment securities increased $3.1 million for the period.
Asset Quality
Loans past due 90 days or more and still accruing as of September 30,
2000 were $14,000. There were no loans past due 90 days or more and still
accruing as of December 31, 1999.
Loans in a non-accrual status totaled $527,000 at September 30, 2000
and $692,000 at December 31, 1999 and represented .31% of total loans as of
September 30, 2000 and .45% as of December 31, 1999. On October 30, 2000 a
non-accrual loan as of September 30, 2000 was removed from non-accrual status
representing $96,000 of the total.
The Company had no other real estate owned at September 30, 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 September 30, 2000, the allowance for loans losses was $1,751,000
and represented 1.04% of total loans and 332.26% 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 nine months of 2000 totaled $74,000 compared
to $115,000 for the year ended December 31, 1999.
Capital Resources
Total Shareholders' Equity was $16,653,000 at September 30, 2000
compared to $15,364,000 at December 31, 1999.
11
<PAGE>
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.
September 30, December 31,
2000 1999
------------ -------------
Tier I Capital to Risk Weighted Assets 8.69% 9.21%
Total Capital to Risk Weighted Assets 9.64% 10.17%
Leverage Ratio 7.01% 7.56%
Liquidity
Cash and Cash Equivalents totaled $14.4 million at September 30, 2000
an increase of $5.0 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 $24.9 million. Certificates of deposits and demand
deposits experienced the largest increases for the nine month period of $17.8
million and $8.3 million respectively. The increase in cash flow for
certificates of deposits could be attributed to aggressive pricing in relation
to local competition.
Net cash used for investing activities for the period was $21.3
million. An increase in loans accounted for $16.0 million and net cash used for
purchase of securities was $2.8 million. Investments in interest bearing time
deposits increased $2.2 million.
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.
12
<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
None
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
A Form 8-K was filed on September 29, 2000 under Item 6
"Resignation of Directors" regarding the resignation of S.
Tucker S. Johnson, Director.
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
(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: November 7, 2000 By: /s/ Keith B. McCarthy
------------------------
Keith B. McCarthy
Executive Vice President
Chief Accounting Officer
13
