Consolidated net income for the fourth quarter of 2006 totaled $28.4 million, which represents an increase of $3.2 million or 12.7 percent, compared to consolidated net income of $25.2 million for the third quarter of 2006, and an increase of $2.8 million or 10.9 percent, compared to consolidated net income of $25.6 million for the fourth quarter of 2005.

Consolidated net income totaled $89.4 million for the year ended December 31, 2006, which represents a decrease of $3.1 million or 3.4 percent, compared to $92.5 million for the year ended December 31, 2005. The 2006 results include a net of tax charge of $10.4 million due to impairment of goodwill.

Earnings per diluted common share (EPS) were $0.77 for the fourth quarter of 2006, which represents an increase of 13.2 percent, compared to EPS of $0.68 for the third quarter of 2006, and an increase of 14.9 percent, compared to EPS of $0.67 for the fourth quarter of 2005. EPS for 2006 were $2.38, compared to EPS of $2.40 for 2005.

Non-GAAP consolidated net income for the year ended December 31, 2006 was $99.8 million, compared to $92.5 million for the year ended December 31, 2005. Non-GAAP consolidated net income for 2006 excludes a net of tax charge of $10.4 million due to impairment of goodwill. Non-GAAP consolidated net income for 2005 had no similar items. A complete reconciliation between non-GAAP consolidated net income and GAAP consolidated net income for the years ended December 31, 2006 and 2005 is provided in an attached table under the section "Use of Non-GAAP Financial Measure."

Fourth Quarter 2006 Highlights

-- Net interest income increased by $3.2 million to $93.0 million in the

fourth quarter of 2006 from $89.8 million in the third quarter of 2006.

-- Net interest margin increased to 7.50 percent in the fourth quarter of

2006 from 7.45 percent in the third quarter of 2006.

-- The yield on the Company's loan portfolio increased to 10.57 percent

for the fourth quarter of 2006 from 10.49 percent in the third quarter

of 2006.

-- Noninterest income increased by $14.9 million in the fourth quarter of

2006 to $45.9 million from $31.0 million in the third quarter of 2006.

-- Noninterest expense increased by $8.2 million to $83.2 million in the

fourth quarter of 2006 from $75.0 million in the third quarter of 2006.

-- Quarterly average loans outstanding totaled $3.15 billion for the

fourth quarter of 2006, which represents an increase of $175.6 million

or 5.9 percent, compared to the third quarter of 2006, and surpassed

the $3 billion mark for the first time in the Company's history.

-- Period end total assets surpassed the $6 billion mark for the first

time in the Company's history.

-- The Company repurchased 200,000 shares of its common stock during the

fourth quarter of 2006 at an aggregate cost of $9.5 million under its

stock repurchase program.

2006 Highlights

-- Net interest income increased by $53.2 million to $352.5 million in

2006 from $299.3 million in 2005.

-- Net interest margin increased to 7.38 percent in 2006 from 6.46 percent

in 2005.

-- The yield on the Company's loan portfolio increased to 10.37 percent in

2006 from 9.26 percent in 2005.

-- Noninterest income increased by $23.7 million to $141.2 million in 2006

from $117.5 million in 2005.

-- Noninterest expense increased by $62.6 million to $322.5 million in

2006 from $259.9 million in 2005. Noninterest expense in 2006 included

a pre-tax charge of $18.4 million due to impairment of goodwill.

-- Average loans outstanding totaled $2.88 billion in 2006, which

represents an increase of $513.7 million or 21.7 percent, compared

to 2005.

-- The Company repurchased 2,144,415 shares of its common stock at an

aggregate cost of $103.8 million under its stock repurchase program

in 2006.

"2006 marks another year of strong operating results. Our impressive loan growth and credit quality speak to SVB Financial Group's unique ability to assess and manage risk effectively in the dynamic markets we serve," said Kenneth Wilcox, president and CEO of SVB Financial Group. "As we work toward an ideal balance of compelling growth and effective cost control, we are using that expertise to pursue new kinds of clients in previously untapped markets that will ultimately be an important source of new revenue."

Selected Financial Results

(Dollars in millions, For the three months ended

except per % Change from

share amounts) Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,

2006 2006 2005 2006 2005

EPS - Diluted $0.77 $0.68 $0.67 13.2% 14.9%

Net Income 28.4 25.2 25.6 12.7 10.9

Average Total

Assets $5,579.2 $5,405.6 $5,303.6 3.2 5.2

Return on

Average Assets (1) 2.0% 1.8% 1.9% 11.1 5.3

Return on

Average Equity (1) 18.2% 17.2% 18.3% 5.8 (0.5)

Average Loans,

Net of Unearned

Income and

Allowance for

Loan Losses $3,151.6 $2,976.0 $2,592.0 5.9 21.6

Average Investment

Securities 1,520.9 1,585.6 1,941.8 (4.1) (21.7)

Average Deposits 3,830.7 3,833.9 4,137.0 (0.1) (7.4)

Average Short-Term

Borrowings (2) 566.2 523.4 179.8 8.2 214.9

Average Other

Long-Term Debt (3) 69.5 0.8 4.0 -- --

Fully Taxable

Equivalent:

Net Interest

Income (4) $93.4 $90.2 $81.5 3.5 14.6

Net Interest

Margin 7.50% 7.45% 6.78% 0.7 10.6

Period End

Prime Rate 8.25 8.25 7.25 -- 13.8

Average SVB

Prime Lending Rate 8.25% 8.25% 6.96% --% 18.5%

For the year ended

Dec. 31, Dec. 31,

2006 2005 % Change

EPS - Diluted $2.38 $2.40 (0.8)%

Net Income 89.4 92.5 (3.4)

Average Total Assets $5,387.4 $5,189.8 3.8

Return on Average Assets (1) 1.7% 1.8% (5.6)

Return on Average Equity (1) 15.2% 17.1% (11.1)

Average Loans, Net of Unearned

Income and Allowance for

Loan Losses $2,882.1 $2,368.4 21.7

Average Investment Securities 1,684.2 1,984.2 (15.1)

Average Deposits 3,921.9 4,166.5 (5.9)

Average Short-Term

Borrowings (2) 400.9 69.5 476.8

Average Other Long-Term

Debt (3) 17.7 8.0 121.3

Fully Taxable Equivalent:

Net Interest Income (4) $354.1 $301.3 17.5

Net Interest Margin 7.38% 6.46% 14.2

Period End Prime Rate 8.25 7.25 13.8

Average SVB Prime Lending Rate 7.95% 6.18% 28.6%

(1) Ratios represent annualized consolidated net income divided by

quarterly average assets/equity and annual average assets/equity,

respectively.

(2) Short-term borrowings represent federal funds purchased, FHLB advances

maturing in less than one year and securities sold under agreement to

repurchase.

(3) Other long-term debt represents FHLB advances as well as long-term

notes payable.

(4) 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 in 2006. The tax equivalent adjustments were

$0.4 million for each of the quarters ended December 31, 2006 and

September 30, 2006, and $0.5 million for the quarter ended

December 31, 2005. The tax equivalent adjustments were $1.6 million

and $2.0 million for the years ended December 31, 2006 and 2005,

respectively.

Net Interest Income

Net interest income of $93.0 million in the fourth quarter of 2006 increased by $3.2 million or 3.6 percent, from $89.8 million in the third quarter of 2006, and increased by $12.0 million or 14.8 percent, from $81.0 million in the fourth quarter of 2005. The increase in the fourth quarter of 2006, compared to the third quarter of 2006 was primarily due to a $5.3 million increase in income from our loan portfolio, partially offset by a $1.0 million decrease in interest income from our investment securities portfolio and an increase in interest expense of $1.3 million. The increase in interest income from our loan portfolio is primarily related to growth in this portfolio. Decreases in our investment securities portfolio reflect lower levels of investment securities due to scheduled maturities and prepayments. The increase in interest expense is primarily related to increases in short- term borrowings and other long-term debt.

As of December 31, 2006, 73.0 percent, or $2.5 billion, of the Company's outstanding gross loans were variable-rate loans that adjust at a prescribed measurement date upon a change in the Company's prime-lending rate or other variable indices, compared to 74.2 percent, or $2.5 billion as of September 30, 2006 and 73.8 percent, or $2.1 billion as of December 31, 2005.

Net Interest Margin

Net interest margin (on a fully tax equivalent basis) was 7.50 percent in the fourth quarter of 2006, compared to 7.45 percent in the third quarter of 2006. This increase was largely due to growth in our loan portfolio and in our noninterest-bearing deposits, partially offset by increases in the balances outstanding of our short-term borrowings and other long-term debt. In 2006, net interest margin was 7.38 percent, compared to 6.46 percent for 2005. This increase was primarily due to increases in yields and growth of our loan portfolio, partially offset by increases in the levels and rates of our short- term borrowings and other long-term debt.

Noninterest Income

Noninterest income of $45.9 million in the fourth quarter of 2006 increased by $14.9 million or 48.1 percent, from $31.0 million in the third quarter of 2006, and increased by $9.1 million or 24.7 percent from $36.8 million in the fourth quarter of 2005. The increase in the fourth quarter of 2006, compared to the third quarter of 2006 was primarily driven by a $5.8 million increase in net gains on investment securities, a $3.6 million increase in net gains on derivative instruments and a $2.4 million increase in corporate finance fees.

Client Investment Fees

Client investment fees totaled $12.2 million in the fourth quarter of 2006, which represents an increase of $0.6 million or 5.2 percent, compared to client investment fees of $11.6 million for the third quarter of 2006.

Foreign Exchange Fees

Foreign exchange fees totaled $5.6 million in the fourth quarter of 2006, compared to $5.2 million for the third quarter of 2006 and $5.0 million for the fourth quarter of 2005. For the year ended December 31, 2006, foreign exchange fees totaled $21.0 million, compared to $17.9 million for 2005. Foreign exchange fees represent the income differential between purchases and sales of foreign currency exchange. Foreign exchange fees were previously presented as a component of gains on derivative instruments, net, within noninterest income in the consolidated statements of income.

Gains (Losses) on Investment Securities, Net

Net gains on investment securities were $3.8 million in the fourth quarter of 2006, compared to net losses of $2.0 million in the third quarter of 2006 and net gains of $3.4 million in the fourth quarter of 2005. Net gains on investment securities of $3.8 million in the fourth quarter of 2006 were primarily due to $3.6 million from net increases in the fair values of fund investments and realized distributions from these investments in one of our managed fund of funds. Relevant amounts attributable to minority interests are reflected in the interim consolidated statements of income under the caption "Minority Interest in Net (Income)/Losses of Consolidated Affiliates". As of December 31, 2006, the Company held investments, either directly or through its managed investment funds, in 361 private equity funds, 46 companies and three venture debt funds.

Gains on Derivative Instruments, Net

For the three months ended

(Dollars in % Change from

thousands) Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,

2006 2006 2005 2006 2005

Total gains

(losses) on

foreign exchange

forwards, net (1) $(980) $182 $50 (638.5)% --%

Change in fair

value of

interest rate

swap (2) 430 397 -- 8.3 --

Gains on

the exercise

of warrants, net 4,054 3,693 1,439 9.8 181.7

Equity warrant

assets - change

in fair value (3):

Cancellations and

expirations (864) (1,623) (716) (46.8) 20.7

Other changes

in fair value 4,247 591 1,933 618.6 119.7

Total net

(losses) gains

on equity warrant

assets (4) 3,383 (1,032) 1,217 (427.8) 178.0

Total gains on

derivative

instruments, net $6,887 $3,240 $2,706 112.6% 154.5%

For the year ended

Dec. 31, Dec. 31,

2006 2005 % Change

Total gains (losses) on

foreign exchange forwards,

net (1) $(219) $3,410 (106.4)%

Change in fair value of

interest rate swap (2) (3,630) -- --

Gains on the exercise of

warrants, net 11,495 9,010 27.6

Equity warrant assets -

change in fair value (3):

Cancellations and expirations (3,963) (2,952) 34.2

Other changes in fair value 14,266 (2,718) (624.9)

Total net (losses) gains

on equity warrant assets (4) 10,303 (5,670) (281.7)

Total gains on derivative

instruments, net $17,949 $6,750 165.9%

(1) Represents (a) the income differential between foreign exchange

forward contracts/non-deliverable foreign exchange forward contracts

with clients and opposite way foreign exchange forward contracts/non-

deliverable foreign exchange forward contracts with correspondent

banks; and (b) the change in the fair value of foreign exchange

forward contracts with correspondent banks to economically reduce

foreign exchange exposure risk related to certain foreign currency

denominated loans.

(2) Represents the change in the fair value hedge agreement for the three

months ended December 31, 2006. For the year ended December 31, 2006,

the amount is comprised of a $3.3 million loss for the interest rate

swap agreement prior to its designation as a fair value hedge and a

$0.3 million loss for the fair value hedge agreement.

(3) As of December 31, 2006, the Company held warrants in 1,287 companies.

(4) Includes net gains (losses) on equity warrant assets held by

consolidated investment affiliates. Relevant amounts attributable to

minority interests are reflected in the interim consolidated

statements of income under the caption "Minority Interest in Net

(Income)/Losses of Consolidated Affiliates."

Noninterest Expense

Noninterest expense for the fourth quarter of 2006 totaled $83.2 million, compared to $75.0 million in the third quarter of 2006. The increase in noninterest expense of $8.2 million in the fourth quarter of 2006 is mainly attributable to increases in our compensation and benefits expense and business development and travel expense.

Noninterest expense of $322.5 million for the year ended December 31, 2006 increased by $62.6 million or 24.1 percent, compared to $259.9 million for the year ended December 31, 2005, primarily due to an increase of $25.0 million in compensation and benefits expense, a pre-tax charge of $18.4 million related to impairment of goodwill, and an increase of $12.1 million in professional services. The increase in compensation and benefits expense was largely due to the Company's adoption of Statement of Financial Accounting Standards 123( R ), Share-Based Payment ("SFAS 123( R )"), and from an increase in the number of full-time equivalent employees. The $18.4 million goodwill impairment charge (pre-tax) recognized in 2006 resulted from our annual goodwill impairment assessment of SVB Alliant, our investment banking subsidiary. The increase in professional services expense primarily relates to consulting costs incurred as part of ongoing efforts to enhance and maintain compliance with various regulations.

Share-Based Compensation

The Company adopted SFAS 123( R ) on January 1, 2006 using the modified prospective method. SFAS 123( R ) requires the Company to measure all employee share-based compensation awards using a fair value based method, estimate award forfeitures, and record such expense in its consolidated statements of income. Consolidated net income for the fourth quarter of 2006 includes $4.6 million (pre-tax) in share-based payment expense, compared to $5.2 million (pre-tax) for the third quarter of 2006. Share-based payment expense is primarily related to stock option, restricted stock and employee stock purchase plan expense calculated in accordance with SFAS 123( R ). Share- based payment expense for the fourth quarter of 2005 was $1.7 million. Prior to our adoption of SFAS 123( R ), we were not required to reflect employee stock option and employee stock purchase plan expenses in consolidated net income.

Income Tax Expense

The Company's effective tax rate was 42.78 percent for the fourth quarter of 2006, which was comparable to 42.69 percent for the third quarter of 2006. The Company's effective tax rate for the year ended December 31, 2006 was 42.45 percent, compared to 39.63 percent for the year ended December 31, 2005. The increase in the tax rate for 2006, compared to 2005, was primarily attributable to the tax impact of certain SFAS 123( R ) share-based payment expenses.

Credit Quality

December 31, September 30, December 31,

(Dollars in thousands) 2006 2006 2005

Nonperforming Loans and Assets:

Loans Past Due 90 Days or More $-- $-- $1,046

Nonaccrual Loans 10,977 9,322 6,499

Total Nonperforming Loans 10,977 9,322 7,545

Other Real Estate Owned 5,677 5,710 6,255

Total Nonperforming Assets $16,654 $15,032 $13,800

Nonperforming Loans as a

Percentage of Total Gross Loans 0.31% 0.28% 0.26%

Nonperforming Assets as a

Percentage of Total Assets 0.28% 0.26% 0.25%

Allowance for Loan Losses $42,747 $39,549 $36,785

As a Percentage of Total

Gross Loans 1.22% 1.18% 1.28%

As a Percentage of

Nonperforming Loans 389.42% 424.25% 487.54%

Allowance For Unfunded

Credit Commitments (1) $14,653 $13,751 $17,115

Total Gross Loans $3,502,202 $3,340,833 $2,863,921

(1) The "Allowance for Unfunded Credit Commitments" is included as a

component of "Other Liabilities."

The Company recognized $3.6 million in gross loan charge-offs and realized $1.9 million in gross loan recoveries during the fourth quarter of 2006. This compares to gross loan charge-offs of $3.2 million and gross loan recoveries of $2.1 million in the third quarter of 2006. The Company recognized a total of $14.1 million in gross loan charge-offs and realized a total of $10.2 million in gross loan recoveries for the year ended December 31, 2006. This compares to total gross loan charge-offs of $12.5 million and total gross loan recoveries of $11.4 million for the year ended December 31, 2005.

Client Investment Funds and Deposits

Period end balances at

December 31, September 30, December 31,

(Dollars in millions) 2006 2006 2005

Client Investment Funds (1):

Client Directed Investment

Assets $11,220.9 $10,911.1 $8,863.4

Sweep Money Market Funds 2,573.5 2,332.5 2,247.4

Client Investment Assets

Under Management 5,165.5 4,454.8 3,856.7

Total Client Investment Funds 18,959.9 17,698.4 14,967.5

Deposits:

Noninterest-Bearing Demand 3,039.5 2,956.6 2,934.3

Negotiable Order of

Withdrawal (NOW) 36.0 30.4 39.6

Money Market 668.8 672.0 961.0

Time 313.3 315.5 317.8

Total Deposits 4,057.6 3,974.5 4,252.7

Total Client Investment

Funds and Deposits $23,017.5 $21,672.9 $19,220.2

(1) Client Investment Funds invested through SVB Financial Group are

maintained at third party financial institutions.

Average total client investment funds totaled $18.2 billion during the fourth quarter of 2006, compared to $17.8 billion during the third quarter of 2006.

Minority Interest in Consolidated Affiliates

Minority interest in net income of consolidated affiliates was $1.2 million in the fourth quarter of 2006, compared with net losses of $0.9 million in the third quarter of 2006 and net income of $2.9 million in the fourth quarter of 2005. Minority interest in net income of consolidated affiliates of $1.2 million in the fourth quarter of 2006 was primarily due to gains on fund investments in one of our managed fund of funds. Minority interest in the capital of consolidated affiliates increased by $9.3 million for the fourth quarter of 2006, compared to the third quarter of 2006, primarily due to capital calls from consolidated affiliates, partially offset by distributions of realized gains from two consolidated funds.

Stock Repurchase Plan and Stockholders' Equity

The Company repurchased 200,000 shares of its common stock during the fourth quarter of 2006 at an aggregate cost of $9.5 million, leaving $67.8 million in remaining authorization under its current stock repurchase program, which expires in June 2008. The Company repurchased 2,144,415 shares of its common stock during the year ended December 31, 2006 at an aggregate cost of $103.8 million.

Stockholders' equity totaled $628.5 million at December 31, 2006, an increase of $32.7 million, compared to $595.8 million at September 30, 2006, and an increase of $59.2 million, compared to $569.3 million at December 31, 2005. The increase in stockholders' equity for the fourth quarter of 2006, compared to the third quarter of 2006 was primarily due to an increase in consolidated net income as well as increases in stock option exercises, partially offset by repurchases of common stock. Both SVB Financial Group's and SVB Silicon Valley Bank's capital ratios were in excess of regulatory guidelines for classification as a well-capitalized depository institution as of December 31, 2006.

Outlook for the First Quarter of 2007 and the Year Ending December 31, 2007

SVB Financial Group currently expects first quarter 2007 diluted earnings per share to be between $0.63 and $0.69. This outlook reflects an expectation of somewhat lower growth in average loans and comparable growth in total client funds compared to the fourth quarter of 2006. We expect the average yield on our loan portfolio and net interest margin to be comparable to the third quarter of 2006. Our outlook also reflects an expectation of lower noninterest income due to lower gains from investment securities and derivative instruments, and a lower amount of provision for loan losses and unfunded credit commitments along with higher noninterest expense due to higher compensation cost than recorded in the fourth quarter of 2006. The Company's effective tax rate is expected to be lower than the fourth quarter of 2006. For the year ending December 31, 2007, we expect average loans, total client funds, noninterest income, and noninterest expense to grow somewhat more slowly; a higher provision for loan losses and unfunded credit commitments compared to 2006. The preceding statements regarding our expectations for various financial metrics, including diluted earnings per share, loan and total client funds growth, net interest income, loan yields, net interest margin, noninterest income, gains from investment securities and derivative instruments, provision for loan losses and unfunded credit commitments, noninterest expense and the effective tax rate are forward looking statements. Actual results may differ.

Safe Harbor

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Management has in the past and might in the future make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements are statements that are not historical facts. Broadly speaking, forward-looking statements include, without limitation, the following:

-- Projections of the Company's revenues, income, earnings per share,

noninterest costs, including professional service, compliance,

compensation and other costs, cash flows, balance sheet, capital

expenditures, capital structure or other financial items

-- Descriptions of strategic initiatives, plans or objectives of

management for future operations, including pending acquisitions

-- Statements about the efficacy of the Company's strategy

-- Forecasts of venture capital funding levels

-- Forecasts of future interest rates

-- Forecasts of expected levels of provisions for loan losses, loan growth

and client funds

-- Forecasts of future economic performance

-- Forecasts of future prevailing interest rates

-- Forecasts of future recoveries on investments

-- Descriptions of assumptions underlying or relating to any of

the foregoing

You can identify these and other forward-looking statements by the use of words such as "becoming," "may," "will," "should," "predicts," "potential," "continue," "anticipates," "believes," "estimates," "seeks," "expects," "plans," "intends," the negative of such words, or comparable terminology. Although management believes that the expectations reflected in these forward- looking statements are reasonable, it has based these expectations on its beliefs and assumptions, such expectations may prove to be incorrect. Actual results of operations and financial performance could differ significantly from those expressed in or implied by management's forward-looking statements.

In this release, the Company makes forward-looking statements discussing the Company's management's expectations about the following:

-- Its financial results for the first quarter of 2007 and the year ending

December 31, 2007, and the components thereof

-- Future performance

-- Future market interest rates

-- Future economic conditions

Factors that may cause the outlook for the first quarter of 2007 and the year ending December 31, 2007 to change include the following:

-- Accounting changes, as required by generally accepted accounting

principles in the United States of America

-- Changes in the state of the economy or the markets served by the

Company

-- Changes in credit quality of the Company's loan portfolio

-- Changes in interest rates or market levels or factors affecting them

-- Changes in the performance or equity valuation of companies in which

the Company has invested or holds derivative instruments or equity

warrants assets

-- Variations from the Company's expectations as to factors impacting its

cost structure

For additional information about factors that could cause actual results to differ from the expectations stated in forward-looking statements, please see the text under the caption "Risk Factors" included under Item 1A of Part I of the Company's most recently filed Form 10-K for the annual period ended December 31, 2005 and Form 10-Q for the period ended September 30, 2006. The Company urges investors to consider all of these factors carefully in evaluating the forward-looking statements contained in this discussion and analysis. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward- looking statements included in this release are made only as of the date of this release. The Company does not intend, and undertakes no obligation, to update these forward-looking statements.

Certain reclassifications were made to prior years' results to conform to 2006 presentations. Such reclassifications had no effect on the Company's results of operations or stockholders' equity.

Earnings Conference Call

On January 25, 2007, the Company will host a conference call at 2:00 p.m. (Pacific Time) to discuss the financial results for the fourth quarter and year ended December 31, 2006. The conference call can be accessed by dialing (866) 916-4782 and referencing the conference ID "6014657." A listen-only live webcast can be accessed on the Investor Relations page of the Company's website at http://www.svb.com . A digitized replay of this conference call will be available beginning at approximately 4:30 p.m. (Pacific Time), on Thursday, January 25, 2007, through midnight (Pacific Time), on Sunday, February 25, 2007, by dialing (866) 642-1687. A replay of the webcast will also be available on http://www.svb.com for 12 months following the call.

About SVB Financial Group

For more than 20 years, SVB Financial Group, the parent company of SVB Silicon Valley Bank, has been dedicated to helping entrepreneurs succeed. SVB Financial Group is a financial holding company that serves emerging growth and mature companies in the technology, life science, private equity and premium wine industries. Offering diversified financial services through SVB Silicon Valley Bank, SVB Alliant, 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 transactions, asset management and a full range of services for private equity companies, as well as the added value of its knowledge and networks worldwide. Headquartered in Santa Clara, Calif., SVB Financial Group operates through 28 offices in the U.S. and three internationally. More information on the company can be found at http://www.svb.com .

Disclaimer:

SVB Silicon Valley Bank refers to Silicon Valley Bank, the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, 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)

(Dollars in

thousands,

except For the three months ended For the year ended

per share Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,

amounts) 2006 2006 2005 2006 2005

Interest

income:

Loans $83,948 $78,686 $62,696 $299,001 $219,283

Investment

securities:

Taxable 16,809 17,720 20,634 74,523 83,950

Non-taxable 685 737 853 3,026 3,695

Federal funds

sold,

securities

purchased

under

agreement

to resell

and other

short-term

investment

securities 3,358 3,161 2,263 11,089 9,531

Total

interest

income 104,800 100,304 86,446 387,639 316,459

Interest

expense:

Deposits 2,047 2,197 2,682 8,905 10,933

Borrowings 9,745 8,299 2,755 26,277 6,233

Total

interest

expense 11,792 10,496 5,437 35,182 17,166

Net interest

income 93,008 89,808 81,009 352,457 299,293

Provision

for loan

losses 4,982 2,767 1,810 9,877 237

Net interest

income

after

provision

for loan

losses 88,026 87,041 79,199 342,580 299,056

Noninterest

income:

Client

investment

fees 12,181 11,555 9,354 44,345 33,255

Foreign

exchange

fees 5,551 5,182 4,991 21,045 17,906

Gains on

derivative

instruments,

net 6,887 3,240 2,706 17,949 6,750

Corporate

finance

fees 4,437 1,999 7,324 11,649 22,063

Deposit

service

charges 2,924 2,747 2,488 10,159 9,805

Letter of

credit

and

standby

letter

of credit

income 2,334 2,617 2,589 9,943 10,007

Gains

(losses)

investment

securities,

net 3,760 (2,048) 3,435 2,551 4,307

Other 7,785 5,676 3,917 23,565 13,402

Total

noninterest

income 45,859 30,968 36,804 141,206 117,495

Noninterest

expense:

Compensation

and

benefits (1) 49,887 45,505 41,246 188,588 163,590

Professional

services 10,999 11,363 11,670 40,791 28,729

Impairment

of goodwill -- -- -- 18,434 --

Net occupancy 4,754 4,112 3,704 17,369 16,210

Furniture and

equipment 4,037 3,899 3,527 15,311 12,824

Business

development

and travel 4,006 3,013 3,107 12,760 10,647

Correspondent

bank fees 1,555 1,510 1,405 5,647 5,530

Data

processing

services 1,306 944 1,042 4,239 4,105

Telephone 1,254 1,040 859 4,081 3,703

(Reduction of)/

provision

for unfunded

credit

commitments 902 458 678 (2,461) 927

Other 4,470 3,163 3,499 17,744 13,595

Total

noninterest

expense 83,170 75,007 70,737 322,503 259,860

Income before

minority

interest

in net

(income)/

losses of

consolidated

affiliates

and income

tax expense 50,715 43,002 45,266 161,283 156,691

Minority

interest

in net

(income)/

losses of

consolidated

affiliates (1,169) 919 (2,928) (6,308) (3,396)

Income

before

income

taxes 49,546 43,921 42,338 154,975 153,295

Income

tax expense 21,196 18,751 16,692 65,782 60,758

Net income

before

cumulative

effect of

change in

accounting

principle 28,350 25,170 25,646 89,193 92,537

Cumulative

effect of

change in

accounting

principle,

net

of tax (2) -- -- -- 192 --

Net income $28,350 $25,170 $25,646 $89,385 $92,537

Earnings

per common

share -

basic

before

cumulative

effect

of change in

accounting

principle $0.83 $0.73 $0.74 $2.57 $2.64

Earnings

per common

share -

diluted

before

cumulative

effect of

change in

accounting

principle $0.77 $0.68 $0.67 $2.37 $2.40

Earnings

per common

share -

basic $0.83 $0.73 $0.74 $2.58 $2.64

Earnings

per common

share -

diluted $0.77 $0.68 $0.67 $2.38 $2.40

Weighted

average

outstanding -

basic 34,290,427 34,417,390 34,868,175 34,680,522 35,114,574

Weighted

average

outstanding -

diluted 37,023,600 37,053,519 38,247,703 37,614,646 38,489,189

(1) Compensation and benefits included share-based payments of

$4.6 million, $5.2 million, $1.7 million, $21.3 million and

$7.1 million for the three months ended December 31, 2006,

September 30, 2006 and December 31, 2005, respectively, and the years

ended December 31, 2006 and 2005, respectively.

(2) The cumulative effect of change in accounting principle, net of tax,

on previously granted restricted stock for the effects of adopting

SFAS 123( R ) Share-Based Payment.

SVB FINANCIAL GROUP AND SUBSIDIARIES

INTERIM CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands,

except par value and December 31, September 30, December 31,

per share amounts) 2006 2006 2005

Assets:

Cash and due from banks $393,284 $305,134 $286,446

Federal funds sold,

securities purchased

under agreement to resell

and other short-term

investment securities 239,301 295,367 175,652

Investment securities 1,677,928 1,726,499 2,037,270

Loans, net of unearned income 3,482,402 3,319,515 2,843,353

Allowance for loan losses (42,747) (39,549) (36,785)

Net loans 3,439,655 3,279,966 2,806,568

Premises and equipment,

net of accumulated

depreciation and amortization 37,306 34,131 25,099

Goodwill 21,296 21,243 35,638

Accrued interest receivable

and other assets 235,178 210,769 175,042

Total assets $6,043,948 $5,873,109 $5,541,715

Liabilities, Minority Interest

and Stockholders' Equity:

Liabilities:

Deposits:

Noninterest-bearing

demand $3,039,528 $2,956,635 $2,934,278

Negotiable order of

withdrawal (NOW) 35,983 30,376 39,573

Money market 668,794 671,968 961,052

Time 313,320 315,481 317,827

Total deposits 4,057,625 3,974,460 4,252,730

Short-term borrowings 683,537 809,767 279,475

Contingently convertible debt 148,441 148,215 147,604

Junior subordinated debentures 51,355 51,201 48,228

Other long-term debt 152,669 2,669 --

Other liabilities 155,792 134,329 124,921

Total liabilities 5,249,419 5,120,641 4,852,958

Minority interest in

capital of consolidated

affiliates 166,015 156,690 119,456

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; 34,401,230 shares,

34,253,880 shares and

35,164,680 shares outstanding,

respectively 34 34 35

Additional paid-in capital 4,873 -- 8,439

Retained earnings 641,528 614,964 587,713

Unearned compensation -- -- (5,792)

Accumulated other

comprehensive loss (17,921) (19,220) (21,094)

Total stockholders' equity 628,514 595,778 569,301

Total liabilities, minority

interest and

stockholders' equity $6,043,948 $5,873,109 5,541,715

Capital Ratios:

Total risk-based capital ratio 13.96% 13.58% 14.75%

Tier 1 risk-based capital ratio 12.35 12.01 12.39

Tier 1 leverage ratio 12.46 12.21 11.64

Other Period-End Statistics:

Loans, net of unearned

income-to-deposits ratio 85.82% 83.52% 66.86%

Book value per share $18.27 $17.39 $16.22

Full-time equivalent employees 1,140 1,120 1,033

SVB FINANCIAL GROUP AND SUBSIDIARIES

INTERIM AVERAGE BALANCES, RATES AND YIELDS

(Unaudited)

For the three months ended,

(Dollars in December 31, 2006 September 30, 2006

thousands) Interest Interest

Average Income/ Yield/ Average Income/ Yield/

Balance Expense Rate Balance Expense Rate

Interest-

earning

assets:

Federal

funds

sold,

securities

purchased

under

agreement

to resell

and other

short-term

investments

(1) $265,798 $3,358 5.01% $240,767 $3,161 5.21%

Investment

securities:

Taxable 1,459,289 16,809 4.57 1,518,983 17,720 4.63

Non-

taxable (2) 61,620 1,054 6.79 66,620 1,134 6.75

Loans:

Commercial 2,636,896 74,000 11.13 2,497,698 69,277 11.00

Real estate

construction

and term 222,710 3,847 6.85 201,147 3,567 7.04

Consumer and

other 291,985 6,101 8.29 277,192 5,842 8.36

Total loans,

net of

unearned

income and

allowance

for loan

losses 3,151,591 83,948 10.57 2,976,037 78,686 10.49

Total

interest-

earning

assets 4,938,298 105,169 8.45 4,802,407 100,701 8.32

Cash and due

from banks 243,788 242,194

Allowance

for loan

losses (40,923) (39,088)

Goodwill 21,278 18,521

Other

assets (3) 416,756 381,537

Total

assets $5,579,197 $5,405,571

Funding

sources:

Interest-

bearing

liabilities:

NOW deposits $33,884 $34 0.40% $33,660 $34 0.40%

Regular

money

market

deposits 159,105 280 0.70 191,418 398 0.82

Bonus

money

market

deposits 513,688 1,055 0.81 551,071 1,145 0.82

Time

deposits 317,368 678 0.85 322,310 620 0.76

Short-term

borrowings 566,230 7,701 5.40 523,352 7,201 5.46

Contingently

convertible

debt 148,311 232 0.62 148,090 232 0.62

Junior

subordinated

debentures 51,077 849 6.59 50,117 845 6.69

Other

long-term

debt 69,517 963 5.50 837 21 9.95

Total

interest-

bearing

liabilities 1,859,180 11,792 2.52 1,820,855 10,496 2.29

Portion of

noninterest-

bearing

funding

sources 3,079,118 2,981,552

Total funding

sources 4,938,298 11,792 0.95 4,802,407 10,496 0.87

Noninterest-

bearing

funding

sources:

Demand

deposits 2,806,656 2,735,481

Other

liabilities 129,484 117,911

Minority

interest

in capital

consolidated

affiliates 164,182 151,496

Stockholders'

equity 619,695 579,828

Portion used

to fund

interest-

earning

assets (3,079,118) (2,981,552)

Total

liabilities,

minority

interest,

and

stockholders'

equity $5,579,197 $5,405,571

Net

interest

income and

margin $93,377 7.50% $90,205 7.45%

Total

deposits $3,830,701 $3,833,940

Average

stockholders'

equity as a

percentage of

average assets 11.11% 10.73%

(1) Includes average interest-bearing deposits in other financial

institutions of $34.9 million and $29.1 million for the fourth quarter

of 2006 and third quarter of 2006, respectively.

(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 in 2006. The tax equivalent adjustments were

$0.4 million for both the fourth and third quarter of 2006.

(3) Average investment securities of $191.4 million and $155.6 million for

the fourth quarter of 2006 and third quarter of 2006, respectively,

were classified as other assets, as they were noninterest-yielding

assets.

SVB FINANCIAL GROUP AND SUBSIDIARIES

YEAR END AVERAGE BALANCES, RATES AND YIELDS

(Unaudited)

For the year ended,

December 31, 2006 December 31, 2005

(Dollars in Interest Interest

thousands) Average Income/ Yield/ Average Income/ Yield/

Balance Expense Rate Balance Expense Rate

Interest-

earning

assets:

Federal

funds sold,

securities

purchased

under

agreement

to resell

and other

short-term

investments

(1) $232,634 $11,089 4.77% $313,266 $9,531 3.04%

Investment

securities:

Taxable 1,615,807 74,523 4.61 1,900,027 83,950 4.42

Non-

taxable (2) 68,371 4,656 6.81 84,151 5,685 6.76

Loans:

Commercial 2,419,286 263,878 10.91 1,969,204 194,018 9.85

Real estate

construction

and term 195,041 13,422 6.88 159,123 10,032 6.30

Consumer and

other 267,761 21,701 8.10 240,035 15,233 6.35

Total loans,

net of

unearned

income and

allowance

for loan

losses 2,882,088 299,001 10.37 2,368,362 219,283 9.26

Total

interest-

earning

assets 4,798,900 389,269 8.11 4,665,806 318,449 6.83

Cash and

due from

banks 242,305 227,869

Allowance

for loan

losses (38,808) (37,144)

Goodwill 27,653 35,638

Other

assets (3) 357,385 297,608

Total

assets $5,387,435 $5,189,777

Funding

sources:

Interest-

bearing

liabilities:

NOW deposits $36,999 $151 0.41% $33,196 $134 0.40%

Regular

money

market

deposits 210,933 1,675 0.79 406,843 2,834 0.70

Bonus money

market

deposits 569,122 4,738 0.83 792,123 6,057 0.76

Time deposits 318,855 2,341 0.73 297,286 1,908 0.64

Short-term

borrowings 400,913 21,131 5.27 69,499 2,698 3.88

Contingently

convertible

debt 148,002 929 0.63 147,181 941 0.64

Junior

subordinated

debentures 50,223 3,211 6.39 49,309 2,330 4.73

Other

long-term

debt 17,741 1,006 5.67 8,035 264 3.29

Total

interest-

bearing

liabilities 1,752,788 35,182 2.01 1,803,472 17,166 0.95

Portion of

noninterest-

bearing

funding

sources 3,046,112 2,862,334

Total funding

sources 4,798,900 35,182 0.73 4,665,806 17,166 0.37

Noninterest-

bearing

funding

sources:

Demand

deposits 2,785,948 2,637,028

Other

liabilities 115,516 114,012

Minority

interest

in capital

consolidated

affiliates 143,977 93,839

Stockholders'

equity 589,206 541,426

Portion used

to fund

interest-

earning

assets (3,046,112) (2,862,334)

Total

liabilities,

minority

interest, and

stockholders'

equity $5,387,435 $5,189,777

Net interest

income and

margin $354,087 7.38% $301,283 6.46%

Total

deposits $3,921,857 $4,166,476

Average

stockholders'

equity as a

percentage of

average assets 10.94% 10.43%

(1) Includes average interest-bearing deposits in other financial

institutions of $31.0 million and $20.4 million for 2006 and 2005,

respectively.

(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 in 2006. The tax equivalent adjustments were

$1.6 million and $2.0 million for the years ended December 31, 2006

and 2005, respectively.

(3) Average investments of $151.2 million and $124.8 million for 2006

and 2005, respectively, were classified as other assets, as they were

noninterest-yielding assets.

Use of Non-GAAP Financial Measure

To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), SVB Financial Group uses a certain non-GAAP measure (non-GAAP net income) of financial performance. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. The GAAP measure most directly comparable to non-GAAP net income is net income. The Company believes that as certain items do not occur in every reporting period, period-by-period comparisons by investors are facilitated by presentation of this non-GAAP financial measure and its core operating expenses and performance. A reconciliation of the non-GAAP financial measure to GAAP information is set forth in the table below.

SVB Financial Group believes that this non-GAAP financial measure, when taken together with the corresponding GAAP financial measure, provides meaningful supplemental information regarding the Company's performance by excluding certain items that do not occur in every reporting period of the Company's core business, operating results or future outlook. SVB Financial Group's management uses, and believes that investors benefit from referring to, this non-GAAP financial measure in assessing the Company's operating results and when planning, forecasting and analyzing future periods. This non- GAAP financial measure also facilitates a comparison of the Company's performance to prior periods. In the financial table below, SVB Financial Group has provided a reconciliation of the most comparable non-GAAP financial measure to the GAAP financial measure used in this press release.

The following table reconciles non-GAAP Net Income to GAAP Net Income for the years ended December 31, 2006 and 2005.

SVB FINANCIAL GROUP AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP TO GAAP NET INCOME

(Unaudited)

For the year ended

December 31, December 31,

(Dollars in thousands) 2006 2005

Non-GAAP Net Income $99,833 $92,537

Impact of impairment of goodwill on

income before income taxes (1) (18,434) --

Impact of impairment of goodwill on

income tax benefit (2) 7,986 --