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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

Commission File Number: 000-15637

SILICON VALLEY BANCSHARES
(Exact name of registrant as specified in its charter)

(408) 654-7400
Registrant's telephone number, including area code:

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

        Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act.) Yes ý    No o

        At July 31, 2004, 35,643,672 shares of the registrant's common stock ($0.001 par value) were outstanding.

TABLE OF CONTENTS

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PART I—FINANCIAL INFORMATION

ITEM 1—INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SILICON VALLEY BANCSHARES AND SUBSIDIARIES
INTERIM CONSOLIDATED BALANCE SHEETS

See accompanying notes to interim consolidated financial statements.

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SILICON VALLEY BANCSHARES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF INCOME

See accompanying notes to interim consolidated financial statements.

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SILICON VALLEY BANCSHARES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

See accompanying notes to interim consolidated financial statements.

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SILICON VALLEY BANCSHARES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

See accompanying notes to interim consolidated financial statements.

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SILICON VALLEY BANCSHARES AND SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1.     Summary of Significant Accounting Policies

        Silicon Valley Bancshares and its subsidiaries (the "Company") offer its clients financial products and services through its five lines of banking and financial services: Our segments are described in Note 8 to the Interim Consolidated Financial Statements. Silicon Valley Bancshares is a bank holding company and a financial holding company whose principal subsidiary is Silicon Valley Bank (the "Bank"), a California-chartered bank, founded in 1983, and headquartered in Santa Clara, California. The Bank serves more than 9,800 clients across the country, through its 26 regional offices. The Bank has 12 offices throughout California and operates regional offices across the country, including Arizona, Colorado, Georgia, Illinois, Massachusetts, Minnesota, New York, North Carolina, Oregon, Pennsylvania, Texas, Virginia, and Washington. The Bank serves clients in all stages of growth from emerging-growth companies to corporate technology clients in the technology and life sciences markets, as well as the premium wine industry. We define "emerging-growth" clients as companies in the start-up or early stages of their lifecycle; these companies tend to be privately held, thinly capitalized and backed by venture capital; they tend to have few employees, primarily engaged in research and development, have brought relatively few products or services to market, and have no or little revenue. By contrast, the company defines "corporate technology" clients as companies that tend to be more mature; they may be relatively well capitalized, publicly traded and more established in the markets in which they participate, although not necessarily the leading players in the largest industries. Merger, acquisition, private placement and corporate partnering services are provided through the Company's wholly-owned investment banking subsidiary, SVB Alliant, whose offices are in California and Massachusetts.

        The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America. Certain reclassifications have been made to the Company's 2003 interim consolidated financial statements to conform to the 2004 presentations. Such reclassifications had no effect on the results of operations or stockholders' equity.

        Descriptions of the Company's significant accounting policies are included in the Company's 2003 Annual Report on Form 10-K under "Item 8. Consolidated Financial Statements and Supplementary Data—Note 1 to the Consolidated Financial Statements—Summary of Significant Accounting Policies." As of June 30, 2004, there have been no significant changes to these policies, except as included herein.

Basis of Presentation and Preparation

Consolidation

        The Consolidated Financial Statements include the accounts of Silicon Valley Bancshares and those of its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. SVB Strategic Investors, LLC, SVB Strategic Investors II, LLC and Silicon Valley BancVentures, Inc., as general partners, are considered to have significant influence over the operating and financing policies of non wholly-owned affiliates, SVB Strategic Investors Fund, L.P., SVB Strategic Investors Fund, L.P. II and Silicon Valley BancVentures, L.P., respectively. The limited partners of SVB Strategic Investors Fund, L.P., SVB Strategic Investors Fund, L.P. II and Silicon Valley BancVentures, L.P. hold no substantive participating rights, therefore, the assets, liabilities, partners' capital and results of operations are included in the Company's Interim Consolidated Financial Statements. Minority interest in the capital of consolidated affiliates primarily represents the minority participants' share of the equity of SVB Strategic Investors Fund, L.P., SVB Strategic Investors Fund, L.P. II and Silicon Valley BancVentures, L.P.

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        Similar accounting is applied to SVB Woodside Financial, the general partner of Taurus Growth Partners, L.P. and Libra Partners, L.P., see the Company's 2003 Annual Report on Form 10-K under "Item 8. Consolidated Financial Statements and Supplementary Data—Note 2 to the Consolidated Financial Statements—Business Combinations."

        The preparation of interim consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and judgments that affect the reported amounts of assets and liabilities as of the balance sheet date and the results of operations for the reported periods. Actual results could differ materially from those estimates. An estimate of possible changes or a range of possible changes cannot be made. For more information on the Company's critical accounting policies and estimates, refer to "Part 1, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates."

        In the opinion of Management, the interim consolidated financial statements contain all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Company's consolidated financial position at June 30, 2004, and the interim results of its operations and interim cash flows for the three and six months ended June 30, 2004 and 2003. The December 31, 2003 Consolidated Balance Sheet was derived from audited financial statements. Certain information and footnote disclosures normally presented have been omitted from this report. The results of operations for the three and six months ended June 30, 2004, may not necessarily be indicative of the Company's operating results for the full year. The interim consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2003 Annual Report on Form 10-K.

Earnings Per Share

        Basic earnings per share (EPS) excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. If the Company had earned a profit during the three month period ended June 30, 2003, we would have added 1.1 million common equivalent shares to our basic weighted-average shares outstanding.

Income from Client Warrants

        Unexercised warrant equity instruments in private companies are initially recorded at a nominal value on the Company's interim consolidated balance sheets. They are carried at this value until they become marketable or expire.

        Gains on warrant equity instruments that result from a portfolio company being acquired by a publicly-traded company are marked to market when the acquisition occurs. The resulting gains are recognized into net income on that date, in accordance with Emerging Issues Task Force, Issue No. 91-5, "Nonmonetary Exchange of Cost-Method Investments."

        Unrealized gains on warrant equity instruments are recorded upon the establishment of a readily determinable fair value of the underlying security, as defined by Statement of Financial Accounting Standard (SFAS) No.115, "Accounting for Certain Investments in Debt and Equity Instruments," and are excluded from net income and are reported in accumulated other comprehensive income, which is a separate component of stockholders' equity.

        Further fluctuations in the market value of these marketable equity instruments, prior to eventual sale, are excluded from net income and are reported in accumulated other comprehensive income, which is a separate component of stockholders' equity. Gains or losses on warrant equity instruments

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are recorded in our consolidated net income in the period the underlying securities are sold to a third party.

Stock-Based Compensation

        The Company has elected to follow Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB No. 25"), and related interpretations, in accounting for its employee stock options rather than the alternative fair value accounting allowed by SFAS No. 123, "Accounting for Stock-Based Compensation," as amended by SFAS No. 148, "Accounting for Stock-Based Compensation—Transition and Disclosure." APB No. 25 provides that the compensation expense relative to the Company's employee stock options is measured based on the intrinsic value of the stock option. SFAS No. 123 as amended by SFAS No. 148 requires companies that continue to follow APB No. 25 to provide a pro-forma disclosure of the impact of applying the fair value method of SFAS No. 123. The Company accounts for stock issued to non-employees in accordance with the provisions of SFAS No. 123 and Financial Accounting Standards Board (FASB) Interpretation No. 44, "Accounting for Certain Transactions Involving Stock Compensation."

        Had compensation cost related to both the Company's stock option awards to employees and directors and to the Employee Stock Purchase Plan been determined under the fair value method prescribed under SFAS No. 123, the Company's net income, basic earnings per share, and diluted earnings per share would have been the pro-forma amounts below:

        Refer to the Company's 2003 Annual Report on Form 10-K under "Item 8. Consolidated Financial Statements and Supplementary Data—Note 18 to the Consolidated Financial Statements—Employee Benefit Plans" for assumptions used in calculating the pro-forma amounts above.

2.     Business Combinations

        On September 28, 2001, the Company completed its acquisition of SVB Alliant (formerly known as Alliant Partners) and has included its results of operations in the Company's consolidated results of operations since that date. The acquisition has allowed the Company to strengthen its investment banking platform for its clients.

        The Company agreed to purchase the assets of SVB Alliant for a total of $100.0 million, due in several installments of cash and/or common stock. These installments are payable over four years

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between September 30, 2001 and September 30, 2005. As of June 30, 2004, the first three installments aggregating $81.3 million have been paid in cash, and the remaining $18.7 million, which was discounted at prevailing forward market interest rates of approximately 3.3% at the time of purchase, are recorded as short-term and long-term debt.

        In addition to the fixed purchase price, the sellers received certain contingent purchase price payments including 75% of the pre-tax income of SVB Alliant for the twelve-month period ended September 28, 2002, which totaled approximately $2.4 million.

        Furthermore, the agreement provides for the Company to pay to the sellers an amount equal to fifteen times the amount by which SVB Alliant's cumulative after-tax net income from October 1, 2002 to September 30, 2005 exceeds $26.5 million, provided, however, that the aggregate amount of any deferred earn-out payment payable shall not exceed $75.0 million. SVB Alliant's cumulative after-tax net loss, from October 1, 2002 through June 30, 2004 was $36.3 million.

        The Company also agreed to make retention payments aggregating $5.0 million in equal annual installments on September 28, 2003, 2004, and 2005, of which, the first installment was paid in late 2003.

        The purchase price was allocated to the assets acquired and liabilities assumed, based on the estimated net fair values at the date of acquisition of approximately $0.5 million. The excess of purchase price over the estimated fair values of the net assets acquired was recorded as goodwill. The business combinations were recorded in accordance with SFAS No. 141. See "Note 6 and Note 7 to the Interim Consolidated Financial Statements—Goodwill, and Short-term Borrowings and Long-term Debt."

3.     Earnings Per Share (EPS)

        The following is a reconciliation of basic EPS to diluted EPS for the three and six months ended June 30, 2004 and 2003.

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4.     Investment Securities

        The detailed composition of the Company's investment securities is presented as follows:

(1)

Included $1.0 million related to Silicon Valley BancVentures, L.P., at June 30, 2004. The Company manages this fund and has a controlling ownership interest of 10.7% in the fund. Excluding the minority interest-owned portion of Silicon Valley BancVentures, L.P., the Company has marketable equity securities (investment company accounting) of $0.1 million as of June 30, 2004.

(2)

Included $39.8 million and $30.1 million related to SVB Strategic Investors Fund, L.P., at June 30, 2004, and December 31, 2003, respectively. The Company manages this fund and has a controlling ownership interest of 11.1% in the fund. It also included $2.6 million related to SVB Strategic Investors Fund II, L.P., at June 30, 2004. The Company manages this fund and has a controlling interest of 30.0% in the fund as of June 30, 2004. Excluding the minority interest-owned portion of these funds, the Company has non-marketable venture capital fund investments (investment company accounting) of $5.2 million and $3.3 million, as of June 30, 2004 and December 31, 2003, respectively.

(3)

Included $12.4 million and $10.0 million related to Silicon Valley BancVentures, L.P., at June 30, 2004, and December 31, 2003, respectively. The Company has a controlling ownership interest of 10.7% in the fund. Excluding the minority interest-owned portion of Silicon Valley BancVentures, L.P., the Company has non-marketable other private equity investments of $1.3 million and $1.1 million as of June, 30, 2004, and December 31, 2003, respectively.

(4)

Non-marketable other investments included $1.5 million related to Partners For Growth, L.P., at June 30, 2004. The Company has a majority ownership interest of 53.2% in the fund. Excluding the minority interest-owned portion of Partners For Growth, L.P., the Company has non-marketable other investments of $0.8 million as of June 30, 2004.

        The following tables present the total commitments, funded commitments, and carrying value of the Company's venture capital and other private equity investments at June 30, 2004. The table also presents net investment gains (losses) for the six months ended June 30, 2004. The carrying value of the Company's venture capital and other private equity investments at and for the year ended December 31, 2003, are included in "Item 8. Consolidated Financial Statements and Supplementary

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Data—Note 6 to the Consolidated Financial Statements—Investment Securities" in the Company's 2003 Annual Report on Form 10-K.

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5.     Loans and Allowance for Loan Losses

        The detailed composition of loans, net of unearned income of $13.7 million and $12.3 million, at June 30, 2004, and December 31, 2003, respectively, is presented in the following table:

        The activity in the allowance for loan losses for the three and six months ended June 30, 2004 and 2003 was as follows:

        The aggregate recorded investment in loans for which impairment has been determined in accordance with SFAS No. 114 totaled $12.6 million and $16.7 million at June 30, 2004, and June 30, 2003, respectively. Allocations of the allowance for loan losses specific to impaired loans totaled $3.8 million at June 30, 2004, and $8.7 million at June 30, 2003. Average impaired loans for the second quarter of 2004 and 2003 totaled $13.7 million and $18.9 million, respectively.

6.     Goodwill

        The Company's total goodwill balance was $37.5 million at June 30, 2004 and December 31, 2003. Substantially all of the Company's goodwill pertains to the acquisition of SVB Alliant and a minor portion relates to the acquisition of Woodside Asset Management, Inc.

        As discussed in the 2003 Annual Report on Form 10-K under "Item 8. Consolidated Financial Statements and Supplementary Data—Note 1 to the Consolidated Financial Statements—Significant Accounting Policies", we adopted the provisions of Statement of Financial Accounting Standard No. 142 ("SFAS No.142"), "Goodwill and Other Intangible Assets" on January 1, 2002. Under this standard, we are required to test intangible assets identified as having an indefinite useful life for impairment.

        During the 2004 second quarter, the Company conducted its annual valuation analysis of the SVB Alliant reporting unit in accordance with SFAS No. 142, based primarily on forecasted discounted cash

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flow analyses. The valuation analysis of SVB Alliant indicated no further impairment beyond that already identified in the valuation analyses performed on that reporting unit as of June 30, 2003 and again as of December 31, 2003, which had previously indicated impairment of goodwill of $17.0 million and $46.0 million, respectively. The Company expensed these amounts to continuing operations as impairment charges during the second and fourth quarters of 2003, respectively.

        For a description of the Company's accounting policies relating to goodwill, refer to the 2003 Annual Report on Form 10-K, under "Item 8. Consolidated Financial Statements and Supplementary Data—Note 1 to the Consolidated Financial Statements—Summary of Significant Accounting Policies."

7.     Short-term Borrowings and Long-term Debt

        The following table represents the outstanding short-term borrowings and long-term debt at June 30, 2004 and December 31, 2003:

(1)

Relates to the acquisition of SVB Alliant, and are payable to the former owners, who were employed by the Company. These notes were discounted over their respective terms, based on market interest rates as of September 28, 2001. Refer to Interim Consolidated Financial Statements Note 2. Business Combinations.

        On June 30, 2004, the company entered into federal funds purchased arrangements with an average interest rate of 1.4% repayable on July 1, 2004.

        On May 20, 2003, the Company issued $150.0 million of zero-coupon, convertible subordinated notes at face value, due June 15, 2008, to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 and outside the United States to non-US persons pursuant to Regulation S under the Securities Act. The notes are convertible into the Company's common stock at a conversion price of $33.6277 per share and are subordinated to all present and future senior debt of the Company. Holders of the notes may convert their notes only if: (i) the price of the Company's common stock issuable upon conversion of a note reaches a specified threshold, (ii) specified corporate transactions occur, or (iii) the trading price for the notes falls below certain thresholds. At the initial conversion price, each $1,000 principal amount of notes will be convertible into approximately 29.7374 shares of the Company's common stock. The Company filed a shelf registration statement with respect to the resale of the notes and the common stock issuable upon the conversion of the notes with the SEC on August 14, 2003. The fair value of the convertible subordinated notes at June 30, 2004 was $189.3 million, based on quoted market prices. This debt will be convertible in the 2004 third quarter, since the Company's stock price was $39.65 at June 30, 2004, which exceeded the conversion threshold. The potential dilutive effect of this contingently convertible debt as of June 30, 2004 was excluded from the calculation of earnings per share in 2004 and 2003 in accordance with the provisions of SFAS No. 128 and EITF 90-19.

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        Concurrent with the issuance of the convertible notes, the Company entered into convertible note hedge and warrant transactions with respect to its common stock, with the objective of limiting its exposure to potential dilution from conversion of the notes. The terms and conditions of the convertible note hedge are disclosed in "Part I. Financial Information—Item 1. Notes to the Interim Consolidated Financial Statements—Note 8 to the Interim Consolidated Financial Statements—Derivative Financial Instruments." The proceeds of the warrant transaction were included in stockholders' equity in accordance with the guidance in Emerging Task Force Issue No. 00-19, "Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock." Under the warrant agreement, Credit Suisse First Boston LLC may purchase up to approximately 4.4 million shares of the Company's common stock at $51.34 per share, upon the occurrence of conversion events defined above. The warrant transaction will expire on June 15, 2008.

7.0% Junior Subordinated Debentures

        On October 30, 2003, the Company issued $51.5 million in 7.0% Junior Subordinated Debentures to a special-purpose trust, SVB Capital II. Distributions to SVB Capital II are cumulative and are payable quarterly at a fixed rate of 7.0% per annum of the face value of the Junior Subordinated Debentures. The Junior Subordinated Debentures are mandatorily redeemable upon the maturity of the debentures on October 15, 2033, or to the extent that there are any earlier redemptions of any debentures by the Company. The Company may redeem the debentures prior to maturity in whole or in part, at its option, at any time on or after October 30, 2008. In addition, the Company may redeem the debentures, in whole but not in part, prior to October 30, 2008 upon the occurrence of certain events. Issuance costs of $2.2 million related to the Junior Subordinated Debentures were deferred and are being amortized over the period until mandatory redemption of the debentures in October 2033. Also see "Note 8. Derivative Financial Instruments" below. The fair value of the 7.0% Junior Subordinated Debentures was estimated to be $45.4 million as of June 30, 2004.

Available Lines of Credit

        The Company currently has available federal funds and lines of credit facilities totaling $169.0 million, of which $139.0 million were unused at June 30, 2004.

8.     Derivative Financial Instruments

        Derivative instruments that the Company uses as a part of its interest rate risk management may include interest rate swaps, caps and floors and forward contracts.

        On October 30, 2003, the Company entered into an interest rate swap agreement with a notional amount of $50.0 million. This agreement hedges against the risk of changes in fair value associated with the Company's Junior Subordinated Debentures. The terms of this interest rate hedge agreement provide for a swap of the Company's 7.0% fixed rate payment for a variable rate based on London Inter-Bank Offer Rate (LIBOR) plus a spread. Because the swap meets the criteria for the "short cut" treatment under SFAS No. 133, the benefit or expense is recorded in the period incurred. This derivative agreement provided a benefit of $0.6 million and $1.2 million for the three and six months ended June 30, 2004. The swap agreement mirrors the terms of the Junior Subordinated Debentures and therefore is callable by the counterparty anytime after October 30, 2008. The Company assumes no ineffectiveness as the swap agreement meets the short-cut method requirements under SFAS No. 133 for fair value hedges of debt instruments. As a result, changes in the fair value of the swap are offset by changes in the fair value of the Junior Subordinated Debentures, and no net gain or loss is recognized in earnings. Changes in the fair value of the derivative agreement and the Junior Subordinated Debentures are primarily dependent on changes in market interest rates. The derivative instrument had a fair value of $1.2 million, which was recorded in other assets at June 30, 2004.

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        On May 15, 2003, the Company entered into a convertible note hedge agreement (purchased call option) with Credit Suisse First Boston LLC (the Counterparty) with respect to its common stock, to limit its exposure to potential dilution from conversion of the Company's $150.0 million principal amount of zero coupon convertible notes. Upon the occurrence of conversion events, the Company has the right to purchase up to approximately 4.4 million of its common stock from the Counterparty at a price of $33.6277 per common share. The convertible note hedge agreement will expire on June 15, 2008. The Company has the option to settle any amounts due under the convertible hedge either in cash or net shares of its common stock. The cost of the convertible note hedge is included in stockholders' equity in accordance with the guidance in Emerging Task Force Issue No. 00-19, "Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock."

        For the Company's Foreign Exchange Contracts and Foreign Currency Option Contracts, see the Company's 2003 Annual Report on Form 10-K.

9. Operating Segments

        The Company is organized into five lines of banking and financial services for management reporting: Commercial Banking, Merchant Banking (SVB Capital), Investment Banking (SVB Alliant), Private Client Services (formerly Private Banking), and Other Business Services. These operating segments are strategic units that offer different services to different clients. They are managed separately because each segment appeals to different markets and, accordingly, requires different strategies. The results of operating segments are based on the Company's management reporting process, which assigns assets, liabilities, income, and expenses to the aforementioned operating segments. This process is dynamic and there is no comprehensive, authoritative guidance for management reporting. The management reporting process measures the performance of operating segments based on the Company's management structure and is not necessarily comparable with similar information for other financial services companies. Changes in the management structure and/or the allocation process have resulted, and may in the future result in, changes in the Company's allocation methodology as this process is under constant refinement. In the event of such changes, results for prior periods have been, and may be, restated for comparability, and to reflect changes in the Company's allocation methodology.

        As of June 30, 2004, based on the quantitative threshold for determining reportable segments as required by SFAS No. 131 "Disclosures About Segments of an Enterprise and Related Information," the Company's reportable segments are: Commercial Banking, which is the principal operating segment of the Company, Merchant Banking (SVB Capital), and Investment Banking (SVB Alliant). Private Client Services does not meet the separate reporting thresholds as defined by SFAS No. 131 and as such has been combined with other business services for segment reporting purposes.

        Commercial Banking provides services to commercial clients in the technology, life science and premium wine industry niches. Lending services, include traditional term loans, commercial finance lending, and structured finance lending. The segment's cash management services unit provides deposit services, collection services, disbursement services, electronic funds transfers, and online banking through SVBeConnect. Commercial Banking's International services unit provides trade services, foreign exchange services, export trade finance, and international cash management. Investment and advisory services are provided through Silicon Valley Bank's broker-dealer subsidiary, SVB Securities, which includes mutual funds, fixed income securities, and investment reporting and monitoring. Also under Commercial Banking, SVB Asset Management one of the Bank's registered investment advisor subsidiaries, actively manages commercial client investment portfolios.

        Merchant Banking (SVB Capital) makes private equity and venture capital fund investments, international alliances and manages three limited partnerships: a venture capital fund and two funds of

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funds. Merchant Banking also provides the lending, deposit, cash management, international, and investment banking services to venture capital firms and other private equity firms.

        Investment Banking (SVB Alliant) provides merger and acquisition, private placement, and corporate partnering services.

        Private Client Services and Other segment includes Private Client Services and Other Business Services. Private Client Services provides a wide array of loan, personal asset management, mortgage services, and trust and estate planning tailored for high-net-worth individuals. It also provides investment advisory services to these high-net-worth clients through the Company's subsidiary Woodside Asset Management, Inc. The Other Business Services unit provides Web-based business services and professional services. The Private Client Services and Other segment also includes necessary adjustments to reconcile segment data to the interim consolidated financial statements.

        The Company's primary source of revenue is from net interest income. Thus, the Company's segments are reported below using net interest income. The Company also evaluates performance based on noninterest income and noninterest expense, which are presented as measures of segment profit and loss. The Company does not allocate income taxes to its segments. Additionally, the

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Company's management reporting model is predicated on average asset balances, therefore, it is not possible to provide period-end asset balances for segment reporting purposes.