Exhibit 99.1
[SILICON VALLEY BANCSHARES LOGO]
SILICON VALLEY BANCSHARES 3003 Tasman Drive Santa Clara, CA 95054
For immediate release Contact:
June 8, 2000 Lisa Bertolet
Investor Relations
(408) 654-7282
NASDAQ: SIVB Andrea McGhee
Corporate Communications
(408) 654-3078
SILICON VALLEY BANCSHARES ANNOUNCES MID-SECOND QUARTER FINANCIAL HIGHLIGHTS
SANTA CLARA, CA -- Silicon Valley Bancshares (the "Company"), parent
company of Silicon Valley Bank (the "Bank"), announced today the following
financial highlights for the two months ended May 31, 2000. This press release
represents a continuation of the Company's practice of issuing a mid-quarter
financial highlights update.
(Dollars in thousands)
Average Loans, Net of Unearned Income - $1,596,844
Average Interest-Earning Assets - $4,671,123
Average Deposits - $4,463,724
Net Interest Margin - 6.9%
Yield on Loans - 11.7%
Yield on Interest-Earning Assets - 8.0%
Cost of Funds - 1.1%
Efficiency Ratio - 43.9%
Warrant Income - $11,151
Venture Capital Gains - $1,700
Off-Balance Sheet Client Funds - $10,001,986
Based on May 31, 2000 market valuations, the Company had additional
potential pre-tax warrant gains totaling $23.3 million. The Company is
restricted from selling many of these warrants until the second, third and
fourth quarters of 2000. As of May 31, 2000, the Company held 1,035 warrants in
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companies and had made investments in 172 venture capital funds and direct
equity investments in 37 companies. Many of these companies are non-public.
Thus, for those companies for which a readily determinable market value cannot
be obtained, the Company values those equity instruments at cost less any
identified impairment. Additionally, the Company is typically precluded from
using any type of derivative instrument to secure the current unrealized gains
associated with many of the warrants. Hence, the amount of income realized by
the Company from the warrants in future periods may vary materially from the
current unrealized amount due to fluctuations in the market prices of the
underlying common stock of these companies. Furthermore, the Company may
reinvest some or all of the income realized from the disposition of warrants in
pursuing its business strategies.
As of May 31, 2000, the Company has identified two loans with principal
amounts aggregating approximately $13.0 million, that, on the basis of
information known to the Company, were judged to have a higher than normal risk
of becoming nonperforming.
This release includes "forward-looking statements" as that term is used
in the securities laws. All statements regarding the Company's expected
financial position, business and strategies are forward-looking statements. In
addition, in this release the words "anticipates," "believes," "estimates,"
"seeks," "expects," "plans," "intends" and similar expressions, as they relate
to the Company or its management, are intended to identify forward-looking
statements. Although the Company believes that the expectations reflected in
these forward-looking statements are reasonable, and has based these
expectations on the Company's beliefs as well as assumptions it has made, such
expectations may prove to be incorrect.
For information with respect to factors that could cause actual results
to differ from the expectations stated in the forward-looking statements, see
the text under the caption "Risk Factors" included in Item 7 of our Report on
Form 10-K dated March 17, 2000. The Company urges investors to consider these
factors carefully in evaluating the forward-looking statements contained in this
release. All subsequent written or oral forward-looking statements attributable
to the Company or persons acting on the Company's 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.
The Company will be in a quiet period beginning June 16, 2000 (15
calendar days before quarter end) and will issue a press release announcing the
final 2000 second quarter financial results on Thursday, July 20, 2000. The
Company will host a conference call at 7:00 a.m. (PST), on Friday, July 21,
2000, to discuss the 2000 second quarter financial results. The conference call
can be accessed by dialing (888) 955-3514 and referencing the passcode "Silicon
Valley Bank." A digitized replay of this
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conference call will be available beginning at approximately 10:00 a.m.
(PST), on Friday, July 21, 2000, through 9:00 a.m. (PST), on Friday, August
18, 2000, by dialing (800) 333-1871. An audio replay of this conference call
will also be available on the World Wide Web at www.svb.com beginning Friday,
July 21, 2000.
Silicon Valley Bank serves emerging growth and middle-market companies
in targeted niches, focusing on the technology and life sciences industries,
while also identifying and capitalizing on opportunities to serve companies in
other industries whose financial services needs the Bank believes are
underserved.
The Bank operates offices throughout the Silicon Valley: Santa
Clara, Palo Alto and Sand Hill, the center of the venture capital community
in California. Other regional offices within California include: Irvine, Los
Angeles, Napa Valley, San Diego, San Francisco, Santa Barbara, and Sonoma.
Office locations outside of California include: Phoenix, Arizona; Boulder,
Colorado; Atlanta, Georgia; Chicago, Illinois; Boston, Massachusetts;
Minneapolis, Minnesota; Portland, Oregon; Philadelphia, Pennsylvania; Austin,
Texas; Dallas, Texas; Durham, North Carolina; Northern Virginia; and Seattle,
Washington.
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