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

                                   FORM 10-QSB

(Mark One)

(X)  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR 15 (d)  OF  THE  SECURITIES
     EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2001

                                       or

(_)  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15 (d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from _________________  to __________________

                        Commission File Number: 000-22407

                          SVB Financial Services, Inc.
             (Exact name of registrant as specified in its charter)

         New Jersey                                         22-3438058
(State of other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                          Identification No.)

70 East Main Street, Somerville, New Jersey                   08876
(Address of principal executive officers)                   (Zip Code)

                                 (908) 541-9500
              (Registrant's telephone number, including area code)

(Former  name,  former  address and former  fiscal year,  if changed  since last
report)

     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.

              (X)     Yes                     (_)     No

As of November 1, 2001 there were 3,315,297 shares of common stock, $2.09 par
value outstanding. The number of shares outstanding has been adjusted for a
declared stock dividend of 5%. The dividend was declared October 25, 2001,
payable November 20, 2001 to all holders of record November 6, 2001.


<PAGE>


                          SVB FINANCIAL SERVICES, INC.
                          ----------------------------

                                   FORM 10-QSB

                                      INDEX


PART I   -     FINANCIAL INFORMATION

ITEM 1   -     Financial Statements and Notes to Consolidated Financial
               Statements

ITEM 2   -     Management's Discussion and Analysis of Financial Condition
               and Results of Operations

ITEM 3   -     Market Risk

PART II  -     OTHER INFORMATION

ITEM 1   -     Legal Proceedings

ITEM 2   -     Changes in Securities

ITEM 3   -     Defaults Upon Senior Securities

ITEM 4   -     Submission of Matters to a Vote of Security Holders

ITEM 5   -     Other Information

ITEM 6   -     Exhibits and Reports on Form 8-K


SIGNATURES


<PAGE>

<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS                                                     September 30,   December 31,
September 30, 2001 and December 31, 2000                                            2001           2000
(in thousands)                                                                  -------------   ------------
                                                                                 (Unaudited)
ASSETS
<S>                                                                               <C>            <C>
Cash & Due from Banks                                                             $  11,606      $   8,280
Federal Funds Sold                                                                   11,410          --
Other Short Term Investments                                                          5,503             78
                                                                                  ---------      ---------
Total Cash and Cash Equivalents                                                      28,519          8,358
                                                                                  ---------      ---------

Interest Bearing Time Deposits                                                        8,668          8,075

Securities
   Available for Sale, at Fair Value                                                 28,014         33,303
   Held to Maturity  (Fair Value $36,100 in 2001 and $6,362 in 2000)                 35,512          6,337
                                                                                  ---------      ---------
Total Securities                                                                     63,526         39,640
                                                                                  ---------      ---------

Loans                                                                               197,354        179,218
   Allowance for Loan Losses                                                         (2,031)        (1,823)
   Unearned Income                                                                     (163)          (144)
                                                                                  ---------      ---------
Net Loans                                                                           195,160        177,251
                                                                                  ---------      ---------

Premises & Equipment, Net                                                             5,067          4,844
Other Assets                                                                          3,699          3,462
                                                                                  ---------      ---------
Total Assets                                                                      $ 304,639      $ 241,630
                                                                                  =========      =========
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
   Non-interest Bearing                                                           $  40,090      $  34,749
   NOW                                                                               47,073         35,088
Savings                                                                              23,939         16,696
Money Market                                                                         32,902         22,826
Time
   Greater than $100,000                                                             32,532         17,072
   Less than $100,000                                                               100,818         95,953
                                                                                  ---------      ---------
Total Deposits                                                                      277,354        222,384
                                                                                  ---------      ---------

Other Borrowings                                                                      2,000            325
Obligation Under Capital Lease                                                          420            426
Subordinated Debentures                                                               4,000           --
                                                                                  ---------      ---------
Total Borrowings                                                                      6,420            751
                                                                                  ---------      ---------

Other Liabilities                                                                     1,581          1,129
                                                                                  ---------      ---------
Total Liabilities                                                                   285,355        224,264
                                                                                  ---------      ---------

SHAREHOLDERS' EQUITY
Common Stock $2.09 Par Value: 20,000,000                                              6,599          6,490
   Shares Authorized; 3,157,426 Shares in 2001 and
   3,105,168 Shares in 2000 Issued and Outstanding
Additional Paid-in Capital                                                            7,584          7,483
Retained Earnings                                                                     4,736          3,454
Accumulated Other Comprehensive Income/(Loss)                                           365            (61)
                                                                                  ---------      ---------
Total Shareholders' Equity                                                           19,284         17,366
                                                                                  ---------      ---------
Total Liabilities and Shareholders' Equity                                        $ 304,639      $ 241,630
                                                                                  =========      =========
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME                                   For the Three Months Ended       For the Nine Months Ended
For the Period Ended September 30,                                     2001            2000            2001          2000
(in thousands)                                                     -------------   -------------   -------------  -------------
                                                                    (Unaudited)     (Unaudited)     (Unaudited)    (Unaudited)

INTEREST INCOME
<S>                                                                  <C>             <C>              <C>            <C>
Loans                                                                $ 3,940         $ 3,859          $12,003        $10,985
Securities Available for Sale                                            349             460            1,236          1,294
Securities Held to Maturity                                              410              73              763            216
Other Short Term Investments                                               4               1                6              2
Interest Bearing Time Deposits                                           134             117              413            311
Federal Funds Sold                                                       202              98              497            237
                                                                     -------         -------          -------        -------
Total Interest Income                                                  5,039           4,608           14,918         13,045
                                                                     -------         -------          -------        -------

INTEREST EXPENSE
Deposits                                                               2,194           2,041            6,844          5,651
Other Borrowings                                                          23               1               27              1
Obligation Under Capital Lease                                             9               9               27             27
Subordinated Debentures                                                   49            --                 49           --
                                                                     -------         -------          -------        -------
Total Interest Expense                                                 2,275           2,051            6,947          5,679
                                                                     -------         -------          -------        -------

Net Interest Income                                                    2,764           2,557            7,971          7,366
PROVISION FOR LOAN LOSSES                                                 90              80              285            260
                                                                     -------         -------          -------        -------
Net Interest Income after Provision For Loan Losses                    2,674           2,477            7,686          7,106
                                                                     -------         -------          -------        -------

OTHER INCOME
Service Charges on Deposit Accounts                                      189             147              566            405
Gains on the Sale of Loans                                               115              33              202            105
Other Income                                                              94              63              256            175
                                                                     -------         -------          -------        -------
Total Other Income                                                       398             243            1,024            685
                                                                     -------         -------          -------        -------

OTHER EXPENSE
Salaries and Employee Benefits                                         1,139           1,022            3,343          3,053
Occupancy Expense                                                        349             309            1,018            921
Equipment Expense                                                        121             127              361            361
Other Expenses                                                           636             584            1,944          1,807
                                                                     -------         -------          -------        -------
Total Other Expense                                                    2,245           2,042            6,666          6,142
                                                                     -------         -------          -------        -------

Income Before Provision for Income Taxes                                 827             678            2,044          1,649
Provision for Income Taxes                                               314             255              762            615
                                                                     -------         -------          -------        -------
Net Income                                                           $   513         $   423          $ 1,282        $ 1,034
                                                                     =======         =======          =======        =======

EARNINGS PER SHARE - Basic (1)                                       $  0.15         $  0.12          $  0.39        $  0.31
                                                                     =======         =======          =======        =======
EARNINGS PER SHARE - Diluted (1)                                     $  0.15         $  0.12          $  0.38        $  0.30
                                                                     =======         =======          =======        =======
</TABLE>

(1)  Amounts have been restated for stock dividends.


<PAGE>

<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
For the Period Ended September 30,

                                                 For the Three Months Ended      For the Nine Months Ended
                                                     2001          2000             2001             2000
                                                 -----------    -----------      -----------     -----------
(in thousands)                                   (Unaudited)    (Unaudited)      (Unaudited)     (Unaudited)
<S>                                                <C>             <C>             <C>             <C>
Net Income                                         $  513          $  423          $1,282          $1,034
Other Comprehensive Income, Net of Tax
   Unrealized Gains Arising in the Period             264             186             426             189
                                                   ------          ------          ------          ------
Comprehensive Income                               $  777          $  609          $1,708          $1,223
                                                   ======          ======          ======          ======
</TABLE>


<PAGE>

<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Period Ended September 30,                              2001                       2000
(in thousands)                                              -------------              -------------
                                                             (Unaudited)                (Unaudited)
OPERATING ACTIVITIES
<S>                                                           <C>                        <C>
Net Income                                                    $  1,282                   $  1,034
Adjustments to Reconcile Net Income to
   Net Cash Provided by Operating Activities:
Provision for Loan Losses                                          285                        260
Depreciation and Amortization                                      440                        430
Amortization of Securities Discount                                 39                          3
Gains on the Sale of Loans                                        (202)                      (105)
Increase in Other Assets                                          (467)                      (612)
Increase in Other Liabilities                                      452                        332
Increase in Unearned Income                                         19                         17
                                                              --------                   --------
Net Cash Provided By Operating Activities                        1,848                      1,359
                                                              --------                   --------

INVESTING ACTIVITIES
Increase in Interest Bearing Time Deposits                        (593)                    (2,197)
Proceeds from the Sales of Securities                              208                       --
Proceeds from Maturities of Securities
   Available for Sale                                           17,263                      2,535
   Held to Maturity                                              4,520                      1,153
Purchases of Securities
   Available for Sale                                          (11,528)                    (5,982)
   Held to Maturity                                            (33,743)                      (475)
Increase in Loans, Net                                         (18,011)                   (15,993)
Capital Expenditures                                              (652)                      (379)
                                                              --------                   --------
Net Cash Used for Investing Activities                         (42,536)                   (21,338)
                                                              --------                   --------

FINANCING ACTIVITIES
Net Increase in Demand Deposits                                 17,326                      8,327
Net Increase in Savings Deposits                                 7,243                        242
Net Increase/(Decrease) in Money Market Deposits                10,076                     (1,481)
Net Increase in Time Deposits                                   20,325                     17,799
Increase in Other Borrowings                                     1,675                       --
Decrease in Obligation Under Capital Lease                          (6)                        (5)
Increase in Subordinated Debentures                              4,000                       --
Proceeds from the Issuance of Common Stock, Net                    225                         66
Purchase of Common Stock, Net                                      (15)                      --
                                                              --------                   --------
Net Cash Provided by Financing Activities                       60,849                     24,948
                                                              --------                   --------

Increase in Cash and Cash Equivalents                           20,161                      4,969
Cash and Cash Equivalents, Beginning of Year                     8,358                      9,428
                                                              --------                   --------
Cash and Cash Equivalents, End of Period                      $ 28,519                   $ 14,397
                                                              ========                   ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   INFORMATION
Cash Paid During the Year for Interest                        $  7,016                   $  5,606
                                                              ========                   ========
Cash Paid During the Year for Federal Income Taxes            $    453                   $    620
                                                              ========                   ========
</TABLE>


<PAGE>

                          SVB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         September 30, 2001 (UNAUDITED)


1.   SVB Financial Services,  Inc., (the "Company"), a bank holding company, was
incorporated  on  February 7, 1996 for the sole  purpose of becoming  the parent
holding company for Somerset Valley Bank ("the Bank"), a full service commercial
bank incorporated in 1990. SVB Bald Eagle Statutory Trust I, a subsidiary of the
Company,  was created to issue trust preferred  securities to assist the Company
to raise additional  regulatory  capital.  The Bank has one subsidiary  Somerset
Valley Investment Company, Inc., which manages an investment portfolio.

     The consolidated  financial  statements  included herein have been prepared
without an audit  pursuant to the rules and  regulations  of the  Securities and
Exchange  Commission.  Certain  information  and footnote  disclosures  normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles have been omitted pursuant to such rules and regulations.
The  accompanying   condensed  consolidated  financial  statements  reflect  all
adjustments  which  are,  in the  opinion  of  management,  necessary  to a fair
statement of the results for the interim periods presented. Such adjustments are
of a normal recurring nature. These consolidated  condensed financial statements
should be read in  conjunction  with the audited  financial  statements  and the
notes thereto.  The results for the nine months ended September 30, 2001 are not
necessarily  indicative  of the results  that may be expected for the year ended
December 31, 2001.

     The  consolidated  financial  statements  include the  accounts of Somerset
Valley Bank. All significant  inter- company accounts and transactions have been
eliminated.

2.   Loans

     At September 30, 2001 and December 31, 2000 the  composition of outstanding
loans is summarized as follows:

                                          September 30,     December 31,
                                              2001             2000
                                            --------         --------
(in thousands)
Secured by Real Estate:
   Residential Mortgage                     $ 61,606         $ 55,357
   Commercial Mortgage                        70,903           57,223
   Construction                               20,005           12,561
Commercial and Industrial                     27,651           33,429
Loans to Individuals for Automobiles           7,527            8,583
Loans to Individuals                           9,471           11,721
Other Loans                                      191              344
                                            --------         --------
                                            $197,354         $179,218
                                            ========         ========


     Loans totaling $160,000 were  restructured  during July of 2001. There were
no loans restructured  during 2000. There were loans totaling $2,000 past due 90
days or more and still accruing at September 30, 2001.  There were no loans past
due 90 days or more and  still  accruing  at  December  31,  2000.  Loans in non
accrual status  totaled  $609,000 at September 30, 2001 and $482,000 at December
31, 2000.



<PAGE>


3.   Allowance for Loan Losses

     The allowance for loan losses is based on estimates and ultimate losses may
vary from the current estimates.  These estimates are reviewed  periodically and
as adjustments become necessary,  they are reflected in operations in the period
in which they become  known.  An analysis of the allowance for loan losses is as
follows:

                                         Nine Months
                                            Ended          Year Ended
                                         September 30,     December 31,
(in thousands)                               2001             2000
                                           --------         --------
Balance January 1,                         $ 1,823          $ 1,550
Provision Charged to Operations                285              375
Charge Offs                                    (98)            (137)
Recoveries                                      21               35
                                           -------          -------
Balance End of Period                      $ 2,031          $ 1,823
                                           =======          =======

4.   Guaranteed  Preferred  Beneficial  Interest  in  Corporation   Subordinated
     Debentures

     The  Company  participates  in a pooled  institutional  placement  of trust
preferred  securities  arranged by First  Tennessee  Securities  Corporation,  a
subsidiary of First  Tennessee Bank N.A. The Company  purchased the common stock
of SVB Bald Eagle  Statutory  Trust I on July 30,  2001 and funding of the trust
preferred securities took place on July 31, 2001. Dividend payments will be paid
quarterly  at an initial  rate of 7.29%.  This  subordinated  debenture  will be
redeemed in the year 2031.

     The  intention  of this  trust  is to  increase  the  Company's  regulatory
capital.

5.   New Accounting Pronouncement

     On June 29, 2001, the Financial  Accounting  Standards  Board (FASB) issued
Statement  of  Financial   Accounting   Standards   (SFAS)  No.  141,   Business
Combinations, and SFAS No. 142, Goodwill and Intangible Assets. These statements
are expected to result in  significant  modifications  relative to the Company's
accounting for goodwill and other intangible assets.  SFAS No. 141 requires that
all business  combinations  initiated  after June 30, 2001 must be accounted for
under the  purchase  method  of  accounting.  SFAS No.  141 was  effective  upon
issuance.  SFAS No. 142 modifies the accounting  for all purchased  goodwill and
intangible  assets.  SFAS No. 142  includes  requirements  to test  goodwill and
indefinite  lived  intangible  assets for impairment  rather than amortize them.
SFAS No. 142 will be effective  for fiscal years  beginning  after  December 31,
2001 and early  adoption  is not  permitted  except  for  business  combinations
entered  into after June 30,  2001.  The  Company is  currently  evaluating  the
provisions  of SFAS  No.  142,  but its  preliminary  assessment  is that  these
Statements will not have a material impact on the Company's  financial  position
or results of operations.

     On July 6, 2001, the Securities and Exchange  Commission (SEC) issued Staff
Accounting Bulletin (SAB) No. 102, Selected Loan Loss Allowance  Methodology and
Documentation  Issues.  SAB  No.  102  provides  guidance  on  the  development,
documentation,  and application of a systematic  methodology for determining the
allowance for loans and leases in accordance  with US GAAP.  The adoption of SAB
No. 102 is not  expected to have a material  impact on the  Company's  financial
position or results of operations.

<PAGE>


ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

     Management of SVB Financial Services,  Inc. (the "Company") is not aware of
any known  trends,  events  or  uncertainties  that will have or are  reasonably
likely to have a material effect on the Company's  liquidity,  capital resources
or results of operations.  The following  discussion and analysis should be read
in  conjunction  with  the  detailed  information  and  consolidated   financial
statements,  including  notes thereto,  included  elsewhere in this report.  The
consolidated  financial  condition  and results of operations of the Company are
essentially those of the Bank. Therefore,  the analysis that follows is directed
to the  performance  of the  Bank.  Such  financial  condition  and  results  of
operations are not intended to be indicative of future performance.

     In  addition  to  historical  information,  this  discussion  and  analysis
contains forward-looking  statements.  The forward-looking  statements contained
herein are subject to certain  risks and  uncertainties  that could cause actual
results  to  differ  materially  from  those  projected  in the  forward-looking
statements.  Important factors that might cause such a difference  include,  but
are not limited  to,  those  discussed  in the  section  entitled  "Management's
Discussion  and  Analysis of  Financial  Condition  and Results of  Operations."
Readers  are  cautioned  not to place undue  reliance  on these  forward-looking
statements,  which reflect  management's  analysis only as the date hereof.  The
Company   undertakes  no   obligation   to  publicly   revise  or  update  these
forward-looking  statements to reflect events or circumstances  that arise after
the date hereof.

Non Banking Products and Affiliations
-------------------------------------

     The  Company  has  formed  a  joint  venture  subsidiary,  Somerset  Valley
Financial LLC, with  International  Planning  Alliance of Somerset,  New Jersey.
This  arrangement  allows the Bank to share in revenues through the sale of life
insurance,  medical  insurance,   financial  planning,  executive  benefits  and
retirement  products.  Currently,  five  Bank  employees  are  licensed  to sell
insurance.  There is also an on-site employee of International Planning Alliance
available to assist customers.

     The Company has reentered into a service  agreement  with Aurora  Financial
Group,  Inc.  to  provide   origination/processing   and  closing  services  for
residential mortgage loans. The Company sells mortgage loans to Aurora Financial
Group,  Inc. on a  non-recourse  basis and receives  fee income.  An employee of
Aurora Financial Group, Inc. is on-site for these purposes.

Results of Operation
--------------------

     Net income for the first nine months of 2001 was $1,282,000, an increase of
$248,000 or 24% as compared to the same period in 2000. Earnings per share-Basic
were $.39 in 2001 and $.31 in 2000. Earnings per share-Diluted were $.38 in 2001
and $.30 in 2000. Earnings per share have been restated for stock dividends.

     A detailed discussion of the major components of net income follows:

Net Interest Income
-------------------

     Net  interest  income  for the first nine  months of 2001 was $8.0  million
compared to $7.4 million in 2000, an increase of $605,000 or 8%.

     Almost all of the  increase  can be  attributed  to an  increase in average
earnings  assets.  Average earning assets for the first nine months of 2001 were
$259.4  million,  an increase of $53.5  million or 26% from the same period last
year.  Loans averaged $188.1 million during the nine months of 2001, an increase
of $26.3 million from last year. The increase in loan balances  caused  interest
income to increase $1.6 million. Security investments averaged $46.1 million, an
increase of $13.8 million from the same period last year.

<PAGE>

     The  yield  on loans  decreased  from  9.07% in 2000 to 8.53% in 2001.  The
decrease in yield  caused  interest  income on loans to decrease  $583,000.  The
yield on earning  assets was 7.69% for 2001 and 8.46% for 2000.  The  effects of
the 350 basis points  decrease in the prime rate this year are  reflected in the
yield. Overall, interest income increased $1.9 million.

     The  overall  cost of  interest-bearing  liabilities  decreased  from 4.44%
during 2000 to 4.28% this year. Total interest-bearing  deposits increased $45.9
million  during  the first nine  months of 2001 to $216.8  million of which time
deposits  accounted  for 63% of the  increase.  The increase in deposits  caused
interest expense to increase $1.4 million.  A decline in rates paid on all types
of deposits,  most notably  certificates  of deposits and money market  accounts
caused  interest  expense  to  decrease  $244,000.   Overall,  interest  expense
increased  $1.2 million and the cost of funding  earning  assets  decreased from
3.68% in 2000 to 3.58% in 2001.

     The net  result of the  change in net  interest  income  for the first nine
months of 2001 versus the same period of 2000 was an increase of  $654,000.  The
net interest margin  decreased from a 4.78% to a 4.11% as a result of the impact
of the interest  rate  reductions  by the Federal  Reserve  which have a greater
initial impact on earning assets than on  interest-bearing  liabilities  for the
Bank.

Provision for Loan Losses
-------------------------

     The provision for loan losses was $285,000 in the first nine months of 2001
as compared to $260,000  during the first nine months of 2000.  The  increase in
provision  is based on the  Company's  most  recent  analysis  and can mostly be
attributed to growth in loans of $28.2 million since September 30, 2000.

Other Income
------------

     The Company has continued to place an emphasis on improving its fee income.

     During the first nine months of 2001, total other income increased $339,000
or 49%  over the same  period  in 2000.  Service  charges  on  deposit  accounts
increased  $161,000 or 40% from 2000. The growth in the number of commercial and
consumer checking  accounts and increases in service charge pricing  contributed
to this increase.  Overdraft fees and foreign  transaction fees at the Company's
ATM  machines   increased  63%  and  49%  over  last  year's  service   charges,
respectively, and were the primary contributors to the increase.

     Gains on the sale of total  loans  increased  $97,000  or 92% from the same
period in 2000.  The Company is a preferred SBA lender and, as such,  originates
SBA loans and sells the government  guaranteed  portions in the secondary market
while  retaining the servicing.  The amount of gains  recognized on SBA loans is
dependent on the volume of new SBA loans  generated each quarter.  These amounts
can vary greatly from quarter to quarter and from year to year.  Fees related to
the  servicing of SBA loans as described  increased  $7,000 or 11% over the same
period for last year.

     Other income increased $81,000 or 46% compared to 2000,  primarily a result
of increased  mortgage  processing fees, which represent  $37,000 or 46% of this
increase.  Safe deposits rents  increased  $12,000 as a result of the additional
branch offices. These boxes are usually free for the first year in a new branch.
During  2001,  the  Bernards  and  Aberdeen  offices  completed  their  one year
anniversaries.

<PAGE>

Other Expense
-------------

     Other  expenses  for the nine months  ended  September  30, 2001  increased
$524,000  or 9% from the same  period in 2000.  Total  assets  have grown  $72.0
million or 31% since  September 30, 2000.  Because of the growth in assets,  the
Company has had to hire  additional  personnel.  These  additions  coupled  with
normal salary increases caused salary and benefits expense to increase  $290,000
or 9% from the same period last year.  Rent on our recently opened Edison branch
and increases in depreciation expenses from Edison and other facilities resulted
in a $97,000 or 11% increase in occupancy costs.  Equipment expense was $361,000
for  2001 as well as  2000.  Other  expense  increased  $137,000  or 8%,  due to
increased insurance, FDIC assessment and website development and usage expenses.

Financial Condition
September 30, 2001 compared to December 31, 2000
------------------------------------------------

     Total assets were $304.6  million at September  30, 2001  increasing  $63.0
million or 26% from  December 31, 2000.  Total loans  increased  $18.1  million.
Loans secured by real estate grew by $27.4  million.  All other loan  categories
showed a decrease.  Commercial and industrial  loans,  loans to individuals  and
loans to individuals  for automobiles  decreased $5.8 million,  $2.3 million and
$1.1 million, respectively. Other loans also showed a decrease of $153,000.

     Deposits  increased  $55.0  million or 25% during the first nine  months of
2001. All categories of deposits improved during the period with certificates of
deposits  and  NOW  accounts   growing  by  $20.3  million  and  $12.0  million,
respectively.  The  Company  has  remained  competitive  in the  pricing  of its
certificates  of deposits  during the current  downward rate trend.  The Company
believes it has benefited from the decline in the stock market causing consumers
to move funds into insured instruments.  It continues to benefit from the recent
merger of Fleet Bank and Summit Bank.

     Investment  securities  grew $23.9  million  since  December  31, 2000 as a
result of deposit growth outpacing loan growth.

Asset Quality
-------------

     There  were  loans  totaling  $2,000  past  due 90 days or more  and  still
accruing as of September 30, 2001.  There were no loans past due 90 days or more
and still accruing as of December 31, 2000.

     Loans in a non-accrual  status  totaled  $609,000 at September 30, 2001 and
$482,000  at  December  31,  2000  and  represented  .31% of  total  loans as of
September 30, 2001 and .27% as of December 31, 2000.

     Loans  considered to be impaired  totaled $732,000 at September 30, 2001, a
valuation reserve of $152,000 is attributed to these loans.

     The Company had no other real estate owned at September 30, 2001.

Allowance for Loan Losses
-------------------------

     The  Company  maintains  an  allowance  for loan  losses at a level  deemed
sufficient to absorb  losses,  which are inherent in the loan  portfolio at each
balance  sheet date.  Management  determines  the adequacy of the allowance on a
monthly  basis to ensure that the  provision  for loan  losses has been  charged
against  earnings in an amount  necessary to maintain  the  allowance at a level
that is  appropriate  based on  management's  assessment  of probable  estimated
losses.  The Company's  methodology  for assessing  the  appropriateness  of the
allowance  for loan  losses  consists of several key  elements.  These  elements
include a specific  allowance for all commercial  loans based upon a risk rating
assigned  to the loan,  an  allowance  for  homogeneous  types of loans  such as
consumer  installment loans,  residential  mortgage loans and home equity loans,
and an additional  allowance for loans deemed to be impaired and an  unallocated
portion.   The  Company   consistently   applies  the  following   comprehensive
methodology.

<PAGE>

     All  commercial  loans are assigned a two-digit  risk rating at the time of
closing.  The first digit of the rating  refers to the  strength of the borrower
based on their financial condition and past history. Current economic conditions
and the effect on the  borrower's  business  are also taken  into  account.  The
second digit refers to the  collateral  strength and  liquidity  with zero being
assigned to unsecured  loans. An allowance  amount is then assigned to each risk
rating.  Since, in its ten-year history, the Company has had very few commercial
loan  losses,  the  amount  of the  allowance  is  based  on the  experience  of
management  and their  judgement  with  respect to these types of loans.  A risk
rating may be changed  with the  approval of the senior loan  officer.  A rating
change may be requested  if the  individual  loan  officer or the Bank's  credit
analyst is aware of a change in the borrower's financial condition. In addition,
approximately  60% of the dollar amount of  commercial  loans are reviewed on an
annual basis by an outside  independent  loan review firm at which time a change
to the risk rating may be recommended.

     The  allowance for  homogenous  loans is  established  based on a number of
factors,  including  current  economic  conditions and the loss  experience with
these types of loans as well as Management's judgement.

     Loans are  deemed to be  impaired  if they are 60 days or more past due for
principal or interest or are in a non-accrual  status.  If there is insufficient
collateral  to pay the amount of the loan an  allowance is  determined  over and
above the  required  by the risk  rating by taking the  difference  between  the
carrying  amount of the loan and the present value of expected future cash flows
discounted at the loans current rate less any amounts already established by the
risk rating.

     The Company  also  maintains  an  unallocated  allowance.  The  unallocated
allowance  is used to  cover  any  factors  or  conditions,  which  may  cause a
potential  loan loss but are not  specifically  identifiable.  It is  prudent to
maintain an unallocated  portion of the allowance because no matter how detailed
an analysis of potential loan losses is performed, these estimates by definition
lack precision.

     Since all identified losses are immediately  charged off, no portion of the
allowance  for loan losses is  restricted  to any  individual  loan or groups of
loans, and the entire allowance is available to absorb any and all loan losses.

     A loan  is  placed  in a  non-accrual  status  at the  time  when  ultimate
collectability of principal or interest,  wholly or partially, is in doubt. Past
due loans are those loans which were  contractually  past due 90 days or more as
to interest or  principal  payments  but are well  secured and in the process of
collection.

     At September  30, 2001,  the allowance  for loans loss was  $2,031,000  and
represented 1.03% of total loans and 333.50% of non-performing loans compared to
an  allowance  for loan losses at December  31, 2000 of  $1,823,000  or 1.02% of
total loans and 378.22% of non-performing loans at December 31, 2000.

     Charge-offs for the first nine months of 2001 totaled  $77,000  compared to
$137,000 for the year ended December 31, 2000.

Capital Resources
-----------------

     Total  Shareholders'  Equity was $19,284,000 at September 30, 2001 compared
to $17,366,000 at December 31, 2000. Subordinated debentures in the amount of $4
million are also included in the  calculation of regulatory  capital ratios with
certain limitations.

     Under the FDIC  Improvement  Act of 1991,  banks are required to maintain a
minimum  ratio of total  capital to risk based assets of 8% of which at least 4%
must be in the form of Tier I  Capital  (primarily  Shareholders'  Equity).  The
following are the Company's capital ratios at the end of the periods indicated.

                                            September 30,     December 31,
                                                2001             2000
                                              --------         --------
Total Capital to Risk Weighted Assets          10.79%           9.68%
Tier I Capital to Risk Weighted Assets          9.88%           8.71%
Leverage Ratio                                  7.43%           7.31%

     The  improvement in the ratios  resulted from the issuance of  subordinated
debentures.


<PAGE>

Liquidity
---------

     Cash and Cash  Equivalents  totaled  $28.5 million at September 30, 2001 an
increase of $20.2 million, since December 31, 2000.

     The increase in Cash and Cash Equivalents was primarily  attributable to an
increase  in deposits  which  contributed  to an  increase  in cash  provided by
financing  activities  of $60.8  million.  Demand  deposits and  certificate  of
deposits  experienced  the largest  increases for the nine month period of $20.3
million and $17.3 million,  respectively.  Four million  dollars was provided by
subordinated debentures (trust subordinated securities).

     An increase in loans and net purchases of investment securities resulted in
net cash used for investing activities of $42.5 million.

ITEM 3 - MARKET RISK

     The Company's  market risk is primarily its exposure to interest rate risk.
Interest  rate risk is the effect that changes in interest  rates have in future
earnings.  The principal objective in managing interest rate risk is to maximize
net  interest  income  within  the  acceptable  levels  of risk  that  have been
previously established by policy.

     Please refer to pages 30-32  "Interest  Rate  Sensitivity  Analysis" in the
2000 Annual Report.  There has been no material changes in market risk since the
date of that report.


<PAGE>

                            PART II-OTHER INFORMATION
                            -------------------------



Item 1   -        Legal Proceedings
                  -----------------
                  The Company is party in the ordinary course of business to
                  litigation involving collection matters, contract claims and
                  other miscellaneous causes of action arising from its
                  business. Management does not consider that such proceedings
                  depart from usual routine litigation and, in its judgment, the
                  Company's financial position and results of operations will
                  not be affected materially by such proceedings.

Item 2   -        Changes in Securities
                  ---------------------
                  None.

Item 3   -        Defaults upon Senior Securities
                  -------------------------------
                  None.

Item 4   -        Submission of Matters to a Vote of Security Holders
                  ---------------------------------------------------
                  None.

Item 5   -        Other Information
                  -----------------
                  The common stock of the Company is traded on the Nasdaq
                  National Market, under the trading symbol SVBF. On September
                  30, 2001, the closing bid of the Company's common stock was
                  $9.00 per share.

                  The Company has a web site and can be located at
                  www.somersetvalleybank.com.

Item 6   -        Exhibits and Reports on Form 8-K
                  --------------------------------

            (a)   Exhibits
                  --------
                  None

            (b)   Form 8-K
                  --------
                  There has been no Form 8-K filed during the nine months of
                  2001.


<PAGE>


                                   SIGNATURES


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                          SVB FINANCIAL SERVICES, INC.
                                          ----------------------------
                                          (Registrant)




Dated:   November 1, 2001                 By: /s/ Keith B. McCarthy
                                             ------------------------------
                                                Keith B. McCarthy
                                                Executive Vice President
                                                Chief Accounting Officer