from here 2005 Year in Review Corporate Headquarters 3003 Tasman Drive Santa Clara, California U.S.A. svb.com

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1 from here Corporate Headquarters 3003 Tasman Drive Santa Clara, California U.S.A. svb.com Member FDIC Member Federal Reserve System 2006 SVB Financial Group. All rights reserved.

2 to there Finding opportunity and leading change at SVB, that s how we ve always worked. It s how we ve sharpened our strategy, led our customers and delivered on our potential as a financial services company. But as the business world has evolved, its financial needs have evolved, too. Once again, we re thinking about how to lead our clients to the next level understanding the direction of global business, anticipating their requirements, adapting our structure and deploying our capabilities where they can produce the greatest value. Today, we are SVB Financial Group. We serve clients who need to evolve from entrepreneurs to enterprises, from local to global or from inception to infinity. And we can lead them from where they are now to where they need to be. 1

3 from decision to delivery 2

4 from many to one 5

5 from insight to implementation

6 from start-up to scaled-up

7 from complex to manageable 10 11

8 from talent to team 12 13

9 from local to global 14 15

10 from objective to outcome 16 17

11 To our Shareholders: Over the past five years, we at SVB Financial Group have put considerable focus and energy toward articulating a clear company vision and then building the right team and developing the right strategy to help us achieve that vision. Today, more so than at any other time in the company s history, our strategy positions us to help clients succeed in a rapidly changing, increasingly global business environment that requires the resources, flexibility and vision to adapt quickly. In this environment, our clients require a financial partner that can adapt as well, providing innovative and evolutionary services and an assurance of continued strength and scalability. At SVB Financial Group, those characteristics are part and parcel of our vision of becoming the premier provider of innovative financial services to entrepreneurial companies of all sizes worldwide. Our performance in 2005 validated our strategic direction, and demonstrated our ability to execute on our stated goals. We are making meaningful progress on the business initiatives behind our strategy, from globalization to expanding our product set. Our core businesses SVB Alliant, SVB Capital, SVB Global and SVB Silicon Valley Bank are all performing according to our expectations. Our management team, many of whom were new to the company at this time last year, has found its collective stride. We are executing according to plan in every facet of our business. Looking across almost all areas of the company, 2005 was an outstanding year for SVB Financial Group, with four successive quarters of record high loan balances, outstanding returns on our loan portfolio, stable deposits, strong credit quality, and accelerating growth in our non-banking businesses. EPS in 2005 rose 41.2 percent to $2.40 Net Income rose nearly 45 percent to $92.5 million Net Interest Margin increased to 6.46 percent from 5.38 percent in 2004 Average loans were up 20 percent to $2.4 billion Net Interest Income increased by 30 percent to $299.3 million Average deposits were up 6.7 percent to $4.2 billion Credit quality remained strong with nonperforming loans at 0.26 percent of total gross loans at December 31, 2005, down from 0.64 percent the prior year This performance, combined with the increased sense of confidence within SVB and a noticeable stabilization of the markets we serve, makes us optimistic about the years ahead. We expect to build upon the success of 2005, so long as we continue to execute on our strategy, expand efficiently, and commit ourselves to strengthening the SVB team

12 Executing on the Strategy: Our strategic plan for growing the business encompasses several distinct, but interrelated objectives. Focus exclusively on technology, life sciences, private equity and premium wine By narrowing our focus to technology, life sciences, private equity and premium wine, we ve gained a solid understanding of the true risks and rewards faced by companies in the core markets we serve. As a result, we re perfectly positioned to both anticipate and develop the innovative approaches to meet the unique financial needs of our clients. Our focus on these core industries also allows us to better differentiate perceived risk from real risk. By being able to devise uniquely creative solutions for our clients, while also managing our credit risks, we achieve levels of operational performance that would be out of reach for a typical commercial bank. In 2005 we incurred net charge offs of just $1.1 million, compared to $52.6 million in 2000 the year we chose to abandon our work with industries outside of our core competencies illustrating the strategic benefit of focusing on what we know best, and then executing. Support entrepreneurs from inception to infinity with a diverse product set The strength of the SVB brand continues to be a competitive differentiator for us. After 23 years of improving our capabilities and building our networks and our reputation as the bank for emerging technology and life science companies, today we enjoy nearly 50 percent market share of U.S. VC-backed companies, and an increasing share of publicly traded ones. As we ve perfected our skills in meeting the needs of these industries, we ve also expanded the number and size of clients that we can serve through our improved capacity, more sophisticated product set and global reach. Clients are responding favorably, and this year our client count was at record levels, exceeding 11,000 clients in total. The ability to meet our clients needs from inception to infinity requires that we go beyond traditional commercial banking solutions to provide a powerful and unmatched combination of products and services, networks, expertise and reach that helps our clients succeed, regardless of the stage in a business life. svb alliant Merger, acquisition and private capital advisory services svb capital Private equity services and access for midsize endowments to invest in some of the best venture capital funds svb global Business development, consulting and business services in dynamic global markets SVB Business Partners (Shanghai) Co. Ltd. SVB Europe Advisors Private Ltd. SVB India Advisors Pvt. Ltd. svb silicon valley bank Credit and global cash management at every stage of growth SVB Asset Management: corporate investment advisory SVB Securities: broker dealer investment services Private Client Services 20 21

13 The successful execution of our strategy to offer diversified financial services to distinct markets led us to change our holding company name in 2005 from Silicon Valley Bancshares to SVB Financial Group. Our new name and logo represent a more accurate reflection of who we are today and how we will evolve as we continue to grow our capabilities and expand into new markets. Lead through innovation and industry thought leadership At SVB Financial Group, we strive to be more than just a service provider for our clients, but instead a valued partner whose ideas, counsel and relationships can directly increase our clients probability of success. This innovation and thought leadership takes many forms from issueoriented industry newsletters to exclusive networking and educational events that bring together investors, entrepreneurs and invaluable business connections. One such event in 2005 was our second Tech Investors Forum held in September in San Francisco. The Forum drew high praise from the 77 selected, high-growth, public and private companies invited to present, and the more than 300 institutional and private equity investors to whom they presented. Expand the global network Our efforts to formally expand the SVB Global network have been buoyed by our longstanding relationships in key international technology markets such as India, China, the U.K. and Israel. Our work in these regions has been a reflection of our clients needs and priorities, and our growing realization that to be anything less than global is to be irrelevant. With that guiding us, we officially opened our third international subsidiary, SVB Business Partners (Shanghai) Co. Ltd. in December. Like our operation in Bangalore, India, our operation in Shanghai, China targets high-growth technology companies and venture capital investors and provides business and consulting services designed for firms conducting cross-border business. We ll continue to make strategic decisions for a global future, as we work to establish a network of resources that ties the world together for our clients and partners. In the coming years, we expect this to include an increased presence in Israel, as well as other geographies where technology innovation is growing and thriving. Through our expanding geographic reach, the strength of our relationships and the range of our service offering, we provide the global connections that lead our clients from lone entrepreneurs to established enterprises to new opportunities to prosper, wherever in the world they want to do business

14 Developing the Best Team: A strategy is nothing more than a plan on paper without the ability to execute effectively. This is dependent on having the right team of people, dedicated to the right values. At SVB Financial Group, we ve worked hard over the past years to ensure that we have both. From our deep bench of talented senior leaders to every member of our highly experienced, driven, enterprising and dedicated staff, we have the best team in place that the company has ever had. Most importantly, SVB Financial Group is a company with a conscience. We are an organization in which personal and professional ethics supersede any competing interest. Throughout our evolution from small bank to global financial services provider, our core values have remained a constant. They are the blueprint from which we ve built the company we are today, and will continue to guide our approach to hiring colleagues and serving clients. A Limitless Opportunity: While 2005 will be remembered as the year the economic recovery became real, I m confident that 2006 will prove to be just as challenging, exciting and rewarding. Technology spending is recovering worldwide, and equipment and software output is increasing. There is ample venture capital available for investment in new companies, and globalization has dramatically increased the spectrum of opportunity for both investors and entrepreneurs. The pace of merger and acquisition activity, in the markets we serve, continues to be brisk, and the quality of the deals is improving. All in all, the global economy is trending upward; that s good news in general. Our clients and partners are asking us to help them take advantage of the opportunities they see, both domestically and internationally, and we have every intention of doing so. We have more expertise and greater reach than we ve ever had before, and those assets are essential to our ability to understand and anticipate our clients needs, no matter where in the world they are doing business. Thank you for your continued support. Sincerely, kenneth p. wilcox President and Chief Executive Officer, SVB Financial Group alex w. pete hart Chairman of the Board, SVB Financial Group 24 25

15 Company Overview Collectively, SVB Financial Group s four businesses, SVB Alliant, SVB Capital, SVB Global and SVB Silicon Valley Bank, offer diversified financial services to companies at all stages of development, worldwide. Dedicated exclusively to the needs of clients in strategically chosen market niches, SVB Financial Group and its member businesses have a deep understanding of their clients industries and the financial services they require to be successful. SVB Alliant A leading investment banking firm, SVB Alliant provides M&A and private capital advisory services to high-growth and established companies. The firm has earned a strong reputation based on its deep domain expertise, robust execution and global transaction experience, and proven track record of building value for its clients. SVB Alliant s expertise spans the technology landscape, with experience in semiconductors, communications, storage, security, networking, peripherals and capital equipment, the Internet, software and services, life sciences and premium wine. The firm s experienced finance and M&A advisors understand their clients industries and businesses and develop solutions to meet client objectives. SVB Capital SVB Capital is the private equity arm of SVB Financial Group. SVB Capital Partners, the unit s funds management group, invests in private equity funds and directly into portfolio companies. The SVB Capital suite of funds exceeds $700 million and includes fund of funds, co-investment funds, venture debt funds and special debt funds invested primarily on behalf of endowments and foundations. SVB Capital s Private Equity Group provides traditional banking products, customized lending solutions and venture distribution services to more than 500 venture capital and private equity clients worldwide. SVB Global Since the early 1990s SVB Financial Group has been calling on international markets and building relationships with technology companies, entrepreneurs, venture capitalists and service providers worldwide. SVB Global helps technology companies and private equity firms navigate foreign markets and identify opportunities, whether entering or leaving the U.S. SVB Global assists clients with market intelligence and furthers the company s global strategy by developing business relationships through dedicated teams in the U.S., London, Bangalore and Shanghai. SVB Silicon Valley Bank For more than 20 years, SVB Silicon Valley Bank has provided financial services to some of the most innovative and entrepreneurial companies in the technology, life science, private equity and premium wine industries. Through years of experience working with these industries, SVB Silicon Valley Bank has a deep understanding of its clients business models and of the volatility inherent in serving these dynamic markets. Offering global commercial, investment and private banking and asset management services to companies of all sizes, SVB Silicon Valley Bank demonstrates an innovative approach to financial services and a deep commitment to helping entrepreneurial companies succeed

16 SVB Financial Group serves four distinct industries: Financial Highlights Technology Private Equity High-growth technology companies require creative financing structures custom fit for their needs as they grow. Our global, diversified services model is designed to work with companies as they expand, regardless of their size. Our technology clients are public, private, venture-backed and bootstrapped companies alike in all segments of technology. The private equity industry plays a critical role in the development and growth of the world s entrepreneurial community. We provide more than 500 private equity and venture capital firms with the financial services they need to foster the innovation of their portfolio companies. Premium Wine $3.9 $4.1 $4.8 $5.2 $3.1 $3.3 $3.9 $4.2 $1.8 $1.8 $2.0 $ % 12.9% 17.1% Life Sciences Long development cycles, clinical trials and regulatory approvals are the hallmarks of life science companies. Employing an appreciation for risk, a long-term perspective and a deep understanding of the industry, we help life science companies obtain the financing they need to succeed. Corporate and family-owned wineries, vintners and wine service providers know that year-to-year cycles are part of their business. Our Wine Group understands the industry s volatility and is well known among the premium wineries in California, Oregon and Washington for its on-staff expertise, financial resourcefulness and ability to manage risk effectively Average Assets in billions Average Deposits in billions Average Loans in billions 2.6% Return on Average Equity $.35 ($1.4) $1.21 $1.70 $2.40 $191.8 $183.1 $229.5 $ % 5.16% 5.38% 6.46% $4.4 $2.0 $ Earnings Per Diluted Share Net Interest Income in millions Net Interest Margin Net Charge-Offs/ Recoveries in millions 28 29

17 Board of Directors of SVB Financial Group Executive Officers of SVB Financial Group 1 Alex W. Pete Hart Chairman of the Board, SVB Financial Group and independent consultant in the financial services industry 2 Kenneth P. Wilcox President and Chief Executive Officer, SVB Financial Group 3 Eric A. Benhamou Chairman and Chief Executive Officer, Benhamou Global Ventures, LLC 4 David M. Clapper President and Chief Executive Officer, SurgRx, Inc. 2 5 Roger F. Dunbar Retired Former Global Vice Chairman, Ernst & Young, LLP 6 Joel P. Friedman Retired Former President, Business Process Outsourcing organization, Accenture 7 G. Felda Hardymon General Partner, Bessemer Venture Partners and Professor of Management Practice, Harvard Business School 8 Harry W. Kellogg, Jr. a Vice Chairman, SVB Silicon Valley Bank 9 C. Richard Kramlich Co-Founder and General Partner, New Enterprise Associates, L.P. 10 James R. Porter Retired Former Chairman, Firstwave Technologies 11 Michaela K. Rodeno Chief Executive Officer, St. Supéry Vineyards and Winery 12 Larry W. Sonsini b Chairman, Wilson Sonsini Goodrich & Rosati, P.C. a Director of SVB Silicon Valley Bank only b To serve as Director until April 2006; Appointed Advisory Director in April Kenneth P. Wilcox President and Chief Executive Officer 2 Gregory W. Becker Chief Operating Officer, SVB Silicon Valley Bank 3 Jack Jenkins-Stark Chief Financial Officer 4 Harry W. Kellogg, Jr. Chairman, SVB Capital and President, Private Client Services 5 David T. Ketsdever Chief Executive Officer, SVB Alliant 6 Mark A. MacLennan President, SVB Capital 7 Lynda Ward Pierce Head of Human Resources 8 Marc J. Verissimo Chief Strategy Officer 9 David C. Webb Chief Information Officer

18 SVB Financial Group Corporate Social Responsibility Statement At SVB Financial Group, satisfying the complex needs of our clients is what our business is all about. We work hard to be the premier provider of innovative financial services to entrepreneurial companies of all sizes worldwide. But that s only part of our story. Behind every client of SVB is a system dedicated to earning their trust. And whether it s called corporate citizenship or social responsibility, SVB takes seriously its commitment to conducting business in an ethical and responsible manner. We live up to that commitment in the way we work, in our accountability to shareholders and our engagement with our employees, customers, the communities we are chartered to serve and the environment in which we operate. The way we work and our accountability to shareholders Effective corporate governance is essential for maintaining the public trust and achieving long-term sustainable value for all of our stakeholders. SVB Financial Group is committed to sound oversight consistent with the best interests of our stakeholders, ethical business principles and adherence to the letter and spirit of the law. SVB Financial Group is also diligent about ensuring its compliance with requirements of all applicable banking laws and Generally Accepted Accounting Principles, and reporting our financial results objectively and accurately. Our Corporate Governance statement and details on the Board of Directors can be found at svb.com. Engagement with our employees Engaged, able and qualified employees who feel fulfilled and energized, and who embrace our business strategy and culture, help make our business successful. SVB Financial Group is deeply committed to investing in its employees and developing current and future leaders. This is achieved through a welcoming and collaborative environment, a safe and healthy workplace, organizational transparency and attractive compensation. Our goal is to consistently be one of the 100 Best Places to Work in the Greater Bay Area as measured by the San Francisco Business Times, Silicon Valley/San Jose Business Journal and East Bay Business Times. More information on SVB compensation, employee activities and SVB Financial Group s role as one of the top 100 Best Places to Work can be found at svb.com. The communities we are chartered to serve In return for Federal deposit insurance, financial institutions are required to make every effort to provide financial services to low- and moderate-income individuals and the low- and moderate-income communities the institution is chartered to serve as mandated through the Community Reinvestment Act ( CRA ). SVB Financial Group looks beyond the mandates of this regulatory requirement and stands on the belief that communities are the building blocks of our nation and that the economic health of our communities affects not only our local economy, but the international economy as well. A sustainable commitment to the communities we serve requires employee collaboration with various financial organizations, corporate leaders, foundations, nonprofits, government entities (domestic and international) and others. SVB Financial Group employees at all levels participate in a variety of activities that make communities a better place to live and work, including but not limited to: Active leadership in the various committees of the Silicon Valley Leadership Group; Triathlons for the Leukemia-Lymphoma Society s Team in Training and endurance bicycle rides for Best Buddies International; Helping SVB Financial Group clients create Social Responsibility Programs of their own through the Entrepreneurs Foundation; Volunteering time with low-income families in the Salvation Army Adopt-a-Family Program and bridging the divide between low-income youth and the entrepreneurial spirit of Silicon Valley through BUILD and the National Foundation for Teaching Entrepreneurship; and Donning hard hats for the annual National Rebuilding Together Day every April. In order to better support employee participation in community activities, The Silicon Valley Bank Foundation exists to make grants on a quarterly basis to community organizations where SVB Financial Group employees volunteer or serve in leadership positions, and which share our goal of serving and improving the community. SVB Financial Group s goal is to dedicate resources to positively impact communities throughout its footprint in a manner that is sustainable and inclusive, and to consistently achieve a Satisfactory rating by the Federal Reserve on our CRA examinations. More information on SVB s CRA program, employee activities, the SVB Foundation and community initiatives can be found at svb.com. The environment in which we operate As with most financial service organizations, SVB Financial Group s main impact on the environment is indirect, through our lending and investments. The environmental risks facing businesses today add a new dimension to risk management. SVB Financial Group s role of allocating capital to cutting-edge businesses brings with it responsibilities of recognizing those risks and considering the sometimes conflicting interests of our clients and other stakeholders in society. SVB Financial Group is committed to being a well-informed and valued business partner for our clients, resulting in both increased business opportunities and decreased environmental risks

19 Corporate Offices SVB Financial Group Corporate Headquarters 3003 Tasman Drive Santa Clara, CA SVB Alliant Headquarters 181 Lytton Ave. Palo Alto, CA Washington St. One Newton Executive Park Suite 200 Newton, MA SVB Capital Headquarters* 3000 Sand Hill Road Building 3, Suite 150 Menlo Park, CA SVB Global Headquarters 3003 Tasman Drive Santa Clara, CA SVB Business Partners (Shanghai) Co. Ltd. Unit 1604, Shui On Plaza 333 Huai Hai Zhong Road Shanghai China SVB India Advisors Pvt. Ltd. 3rd Floor, Prestige Loka Brunton Road Bangalore India SVB Europe Advisors Limited 8 Clifford St. London W1S 2LQ United Kingdom SVB Silicon Valley Bank Headquarters* 3003 Tasman Drive Santa Clara, CA Wine Division California Napa Valley* 899 Adams St. Suite G-2 St. Helena, CA Sonoma 3700 Old Redwood Highway Suite 220 Santa Rosa, CA Western Division California Fremont Civic Center Drive Suite 220 Fremont, CA Irvine 38 Technology Drive Suite 150 Irvine, CA Los Angeles 5820 Canoga Ave. Suite 210 Woodland Hills, CA Palo Alto* 2 Palo Alto Square Suite 110 Palo Alto, CA Palo Alto 2400 Geng Road Suite 200 Palo Alto, CA San Diego 4445 Eastgate Mall Suite 110 San Diego, CA San Francisco 185 Berry St. Suite 3000 San Francisco, CA Santa Clara 3979 Freedom Circle Suite 600 Santa Clara, CA Central Division Arizona Northsight Blvd. Suite 203 Scottsdale, AZ Colorado 4410 Arapahoe Ave. Suite 200 Boulder, CO Illinois 230 West Monroe St. Suite 720 Chicago, IL Minnesota 301 Carlson Parkway Suite 255 Minnetonka, MN Oregon 8705 S.W. Nimbus Ave. Suite 240 Beaverton, OR Texas Austin 7000 North MoPac Expressway Suite 360 Austin, TX Dallas N. Dallas Parkway Suite 780 Centura Tower Dallas, TX Washington 4700 Carillon Point Kirkland, WA Eastern Division Georgia 3353 Peachtree Road N.E. North Tower Suite M-10 Atlanta, GA Massachusetts 2221 Washington St. One Newton Executive Park Suite 200 Newton, MA New York 400 Madison Ave. Suite 15A New York, NY North Carolina 2530 Meridian Parkway 3rd Floor Durham, NC Pennsylvania 5 Radnor Corporate Center 100 Matsonford Road Suite 555 Radnor, PA Virginia 8020 Towers Crescent Drive Suite 475 Vienna, VA * Branch Locations 34 35

20 Shareholder Information SVB Financial Group Corporate Headquarters 3003 Tasman Drive Santa Clara, CA U.S.A Independent Registered Public Accounting Firm KPMG LLP Three Embarcadero Center San Francisco, CA Common Stock The Company s common stock trades on the Nasdaq Stock Market under the symbol SIVB. Registrar and Transfer Agent Wells Fargo Bank, N.A. P.O. Box St. Paul, MN Annual Meeting of Shareholders The 2006 Annual Meeting of Shareholders will be held at 4:00 p.m. local time, Thursday, April 20, 2006 at the SVB Financial Group headquarters, 3003 Tasman Drive Santa Clara, CA Form 10-K SVB Financial Group 2005 Annual Report on Form 10-K has been filed with the Securities and Exchange Commission. Copies are available at svb.com or upon written request to: Investor Relations Lisa Bertolet 003 Tasman Drive Santa Clara, CA lbertol@svb.com Forward-Looking Statements The statements contained herein may be forward-looking statements regarding future events or the future financial performance of SVB Financial Group (the Company ). Actual events or results may differ materially. Please refer to reports and other documents filed from time to time by the Company with the Securities and Exchange Commission, including the Company s Form 10-K for the fiscal year ended December 31, These reports and documents contain financial and other material information about the Company, and identify important risk factors that could cause the Company s actual results to differ materially from the expectations contained in our forward-looking statements. 36 design: VSA Partners, Inc.