719739--3/27/2006--SVB_FINANCIAL

related topics

{system, service, information}

{regulation, change, law}

{acquisition, growth, future}

{condition, economic, financial}

{personnel, key, retain}

{product, market, service}

{loss, insurance, financial}

{financial, litigation, operation}

{loan, real, estate}

{investment, property, distribution}

{operation, natural, condition}

{debt, indebtedness, cash}

{control, financial, internal}

{operation, international, foreign}

{capital, credit, financial}

If a significant number of clients fail to perform under their loans, our business, profitability, and financial condition would be adversely affected. Because of the credit profile of our loan portfolio, our levels of nonperforming assets and charge-offs can be volatile, and we may need to make material provisions for loan losses in any period, which could reduce net income or increase net losses in that period. Our current level of interest rate spread may decline in the future. Any material reduction in our interest spread could have a material impact on our business and profitability. Our business is dependent upon access to funds on attractive terms. Warrant, venture capital fund, and direct equity investment portfolio gains or losses depend upon the performance of the portfolio investments and the general condition of the public equity markets, which is uncertain. Public equity offerings and mergers and acquisitions involving our clients can cause loans to be paid off early, which could adversely affect our business and profitability. If we fail to retain our key employees, our growth and profitability could be adversely affected. Changes to our employee compensation structure could adversely affect our results of operations and cash flows, as well as our ability to attract, recruit, and retain certain key employees. We could be liable for breaches of security in our online banking services. Fear of security breaches could limit the growth of our online services. Business interruptions due to natural disasters and other events beyond our control can adversely affect our business. We rely on other companies to provide key components of our business infrastructure. We face risks associated with the ability of our information technology systems and our processes to effectively support our growth. We depend on the accuracy and completeness of information about customers and counterparties. Our accounting policies and methods are key to how we report our financial condition and results of operations. They may require management to make estimates about matters that are uncertain. Changes in accounting standards could materially impact our financial statements. If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results. As a result, current and potential stockholders could lose confidence in our financial reporting, which would harm our business and the trading price of our stock. We are subject to extensive regulation that could limit or restrict our activities and impose financial requirements or limitations on the conduct of our business. SVB Financial relies on dividends from its subsidiaries for most of its revenue. Our business reputation is important and any damage to it can have a material adverse effect on our business. Adverse changes in domestic or global economic conditions, especially in the technology sector and particularly in California, could have a material adverse effect on our business, growth, and profitability. Decreases in the amount of equity capital available to start-up and emerging-growth companies could adversely affect our business, profitability, and growth prospects. We cannot assure that we will be able to maintain our historical levels of profitability in the face of sustained competitive pressures. We face risks in connection with completed or potential acquisitions. We face risks associated with international operations. Maintaining or increasing our market share depends on market acceptance of new products and services.

Full 10-K form ▸

719739--3/27/2006--SVB_FINANCIAL_GROUP