1. SVB Financial Group (Nasdaq: SIVB) September 2006
Principal Banking Subsidiary: Silicon Valley Bank Member Federal Reserve System. Member FDIC

2. Safe Harbor Disclosure
This presentation contains projections or other forward-looking statements regarding the future events or the future financial performance of the company. Forward-looking statements are statements that are not historical facts. We wish to caution you that such statements are just predictions and actual events or results may differ materially, due to changes in economic, business and regulatory factors and trends. We also refer you to the documents the company files from time to time with the Securities and Exchange Commission, specifically the company’s last filed Form 10-Q, filed on August 9, These documents contain and identify important risk factors that could cause the company’s actual results to differ materially from those contained in our projections or other forward-looking statements.

3. Corporate Overview Growth Strategy Financial Highlights
Agenda

4. Corporate Overview

5. Corporate Overview Founded in 1983
Offices in 27 U.S. cities and three international markets
11,000+ clients and 1,100+ employees
Over $5 billion in assets
Leading market share: 50%+ of U.S. venture-backed technology companies
LP interests in more than 250 funds; more than 500 venture firm clients
Unique financial services model delivering strong, organic earnings growth
One of the highest net interest margins in the country (7.30%)
Low cost of funds due to high non-interest bearing deposits (71% of total)
Low loan-to-deposit ratio (75%) supporting future loan growth

6. Mission: To Help Entrepreneurial Companies Succeed
Strategy
Focus on technology, life science, private equity and premium wine
Meet the needs of clients from inception to infinity
Offer a diversified product set
Do it worldwide
Take a high-touch approach with decentralized delivery
Practice innovation and thought leadership

7. Growth

8. Our Growth Focus Continue to grow loans and deposits
Maintain strong Series A lending activity
Target and expand base of non-venture-backed and public technology and life science companies
Expand relationships with private equity firms and continue to leverage our unique position as with venture capital firms and their portfolio companies 
Provide Private Client Services to complement our commercial financial services
Expand funds business
Continue to grow our family of funds: direct equity and fund of funds
Establish new kinds of funds: venture debt, international and mezzanine
Grow fee-based income
Expand SVB Alliant’s footprint to take advantage of global M&A market 
Support our clients’ efforts to expand and do business globally through SVB Global Financial Services and SVB Global
Continue to grow SVB Asset Management
Build SVB Analytics
Loans and Deposits
Early stage companies
“Corporate Technology” clients
Venture Capital firms
Accelerate funds business
Gold Hill and Partners For Growth
SVB-managed fund-of-funds and co-investment funds
Generate fee-based income
SVB Alliant
Global Financial Services
Grow asset management business

9. Business Drivers
Strong growth in targeted industries generally exceeding GDP growth rates
Continued fundraising and investment by VCs and private equity firms
The creation of new companies, product categories and markets as a result of globalization
Growth in liquidity events such as mergers, acquisitions and Initial Public Offerings

10. Ample Capital to Invest in Good Companies
VC Investments in US Companies
US Cumulative Uninvested (Overhang)
Billions
Billions
Source: Thomson Financial Venture Economics

11. US Venture-Backed M&As
M&A As An Exit Strategy
M&As vs. IPOs
US Venture-Backed M&As
Billions
# of deals
Source: Thomson Financial Venture Economics

12. Financial Highlights

13. Financial Highlights – Q2 2006
Strength in our business model
Significant growth in both on- and off-balance sheet deposits and in loans
Strong earnings
Continued strong ROA and ROE
Strength in our balance sheet
Strong credit quality
Strong reserves
Strong capital base

14. Diluted Earnings Per Share
Net Income*
Millions
$35.9
$0.94
*Please review the following table for a reconciliation of the non-GAAP Net Income to GAAP Net Income.

15. Non-GAAP Analysis For the three months ended For the six months ended
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 certain non-GAAP measures 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 income tax expense is income tax expense. The GAAP measure most directly comparable to non-GAAP net income is net income. The Company believes that as these items do not occur in every reporting period, period by period comparisons by investors are facilitated by presentation of these non-GAAP financial measures of its core operating expenses and performance. A reconciliation of each of these non-GAAP financial measures to GAAP information is set forth in the table below.
SVB Financial Group believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide 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, these non-GAAP financial measures in assessing the Company's operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company's performance to prior periods.. In the financial table below, SVB Financial Group has provided a reconciliation of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release.
The following table reconciles the non-GAAP Net Income to GAAP Net Income:
For the three months ended
For the six months ended
June 30,
March 31,
2006
2005
Non-GAAP Net Income
$24,042
$22,271
$20,896
$46,313
$43,832
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
GAAP Net Income
$13,594
$35,865
(1)     Goodwill impairment charge for SVB Alliant.
(2)     Tax benefit from goodwill impairment at SVB Alliant tax rate.

16. Return to Stockholders
Return on Average Stockholders’ Equity
Return on Average Assets
ROE without impairment was 16.51%
ROA without impairment was 1.82%

17. Diversified Income Streams
Noninterest Income
Net Interest Income
Millions
Millions
$117.5
$107.8
$81.4
$81.4
$71.9
$64.4
$169.6
(1) Other Fee Income as a component of Noninterest Income consists of Letter of Credit and Standby Letter of Credit Income, Deposit Service Charges and Other Noninterest Income.

18. Average Loans, Net of Unearned Income
Strong Deposit and Loan Growth Trends Continue
Client Funds
Average Loans, Net of Unearned Income
Billions
Billions

19. Cost of Funds Remains Low
Net Interest Margin
Cost of Funds

20. LTD Ratio & Yield on Interest Earning Assets
Loan* to Deposit Ratio
Yield on Interest Earning Assets*
*Loans, net of unearned income.
*Based on average balance sheet data.

21. Non-Interest Bearing Demand Deposits*
Efficient Mix of Deposits
Non-Interest Bearing Demand Deposits*
Interest Bearing Deposits*
Billions
*Based on average balance sheet data.

22. Loan Portfolio Composition

23. Loan Portfolio Composition
Total Loan Portfolio
Composition of Technology Lending
Non-Technology Lending
Technology Lending

24. Credit Quality Remains Strong
Nonperforming Loans
Allowance for Loan Losses
Millions
Millions

25. A Reputation for Managing Risk
Gross Charge-offs
Net Charge-offs/(Recoveries)
Millions
Millions

26. Strong Capital Levels