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 June 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 August 1, 2001 there were 3,148,626 shares of common stock, $2.09 par
value outstanding.


<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                                                     June 30,       December 31,
June 30, 2001 and December 31, 2000                                               2001            2000
                                                                                ---------------------------
                                                                                        (Unaudited)
<S>                                                                             <C>             <C>
(in thousands)
ASSETS
Cash & Due from Banks                                                           $  12,123       $   8,280
Federal Funds Sold                                                                 20,915              --
Other Short Term Investments                                                           43              78
                                                                                ---------------------------
Total Cash and Cash Equivalents                                                    33,081           8,358
                                                                                ---------------------------

Interest Bearing Time Deposits                                                      8,465           8,075

Securities
   Available for Sale, at Fair Value                                               23,366          32,464
   Held to Maturity  (Fair Value $26,138 in 2001 and $6,362 in 2000)               26,123           6,337
   Equity Securities                                                                  899             839
                                                                                ---------------------------
Total Securities                                                                   50,388          39,640
                                                                                ---------------------------

Loans                                                                             188,064         179,218
   Allowance for Loan Losses                                                       (1,961)         (1,823)
   Unearned Income                                                                   (150)           (144)
Net Loans                                                                         185,953         177,251
                                                                                ---------------------------
Premises & Equipment, Net                                                           5,136           4,844
Other Assets                                                                        3,539           3,462
Total Assets                                                                    $ 286,562       $ 241,630
                                                                                ===========================

LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
   Non-interest Bearing                                                         $  38,591       $  34,749
   NOW Accounts                                                                    49,267          35,088
Savings                                                                            20,724          16,696
Money Market Accounts                                                              27,748          22,826
Time
   Greater than $100,000                                                           23,654          17,072
   Less than $100,000                                                             104,543          95,953
Total Deposits                                                                    264,527         222,384
                                                                                ---------------------------

Other Borrowings                                                                    2,000             325
Obligation Under Capital Lease                                                        422             426
Other Liabilities                                                                   1,158           1,129
                                                                                ---------------------------
Total Liabilities                                                                 268,107         224,264
                                                                                ---------------------------
SHAREHOLDERS' EQUITY
Common Stock $2.09 Par Value: 20,000,000                                            6,581           6,490
   Shares Authorized; 3,148,626 Shares in 2001 and
   2,946,556 Shares in 2000 Issued and Outstanding
Additional Paid-in Capital                                                          7,550           7,483
Retained Earnings                                                                   4,223           3,454
Accumulated Other Comprehensive Income (Loss)                                         101             (61)
                                                                                ---------------------------
Total Shareholders' Equity                                                         18,455          17,366
                                                                                ---------------------------
Total Liabilities and Shareholders' Equity                                      $ 286,562       $ 241,630
                                                                                ===========================
</TABLE>

<PAGE>


<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME                           For the Three Months Ended       For the Six Months Ended
For the Period Ended June 30,                                 2001              2000            2001           2000
                                                          ---------------------------------------------------------------
                                                            (Unaudited)     (Unaudited)      (Unaudited)     (Unaudited)
<S>                                                           <C>              <C>              <C>              <C>
(in thousands)
INTEREST INCOME
Loans                                                         $4,017           $3,716           $8,063           $7,126
Securities Available for Sale                                    369              419              866              814
Securities Held to Maturity                                      245               70              353              143
Dividends on Equity Securities                                    10               10               21               20
Other Short Term Investments                                       1                1                2                1
Interest Bearing Time Deposits                                   140              106              279              194
Federal Funds Sold                                               169               66              295              139
                                                              ------           ------           ------           ------
Total Interest Income                                          4,951            4,388            9,879            8,437
                                                              ------           ------           ------           ------

INTEREST EXPENSE
Deposits                                                       2,279            1,875            4,650            3,610
Other Borrowings                                                   4               --                4               --
Obligation Under Capital Lease                                     9                9               18               18
                                                              ------           ------           ------           ------
Total Interest Expense                                         2,292            1,884            4,672            3,628
                                                              ------           ------           ------           ------

Net Interest Income                                            2,659            2,504            5,207            4,809
PROVISION FOR LOAN LOSSES                                         90               85              195              180
                                                              ------           ------           ------           ------
Net Interest Income after Provision For Loan Losses            2,569            2,419            5,012            4,629
                                                              ------           ------           ------           ------

OTHER INCOME
Service Charges on Deposit Accounts                              196              136              377              258
Gains on the Sale of Loans                                        56                6               87               72
Other Income                                                      93               57              162              112
                                                              ------           ------           ------           ------
Total Other Income                                               345              199              626              442
                                                              ------           ------           ------           ------

OTHER EXPENSE
Salaries and Employee Benefits                                 1,111            1,034            2,204            2,031
Occupancy Expense                                                325              312              669              612
Equipment Expense                                                122              127              240              234
Other Expenses                                                   667              602            1,308            1,223
                                                              ------           ------           ------           ------
Total Other Expense                                            2,225            2,075            4,421            4,100
                                                              ------           ------           ------           ------

Income Before Provision for Income Taxes                         689              543            1,271              971
Provision for Income Taxes                                       257              206              448              360
                                                              ------           ------           ------           ------
Net Income                                                    $  432           $  337           $  769           $  611
                                                              ======           ======           ======           ======

EARNINGS PER SHARE - Basic (1)                                $ 0.14           $ 0.10           $ 0.25           $ 0.20
                                                              ======           ======           ======           ======
EARNINGS PER SHARE - Diluted (1)                              $ 0.14           $ 0.10           $ 0.24           $ 0.19
                                                              ======           ======           ======           ======
</TABLE>

(1)  Amounts have been restated for stock dividends.


<PAGE>





SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
For the Period Ended June 30,

<TABLE>
<CAPTION>
                                                            For the Three Months Ended        For the Six Months Ended
                                                               2001           2000             2001             2000
                                                            -----------    -----------      -----------      -----------
                                                            (Unaudited)    (Unaudited)      (Unaudited)      (Unaudited)
<S>                                                           <C>            <C>              <C>                <C>
(in thousands)
Net Income                                                    $ 432          $ 337            $ 769              $ 611
Other Comprehensive Income, Net of Tax
   Unrealized (Losses)/Gains Arising in the Period              (45)            68              162                  3
                                                              -----          -----            -----              -----
Comprehensive Income                                          $ 387          $ 405            $ 931              $ 614
                                                              =====          =====            =====              =====
</TABLE>





<PAGE>


<TABLE>
<CAPTION>

SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Period Ended June 30,                                       2001           2000
                                                                -----------    ------------
                                                                (Unaudited)     (Unaudited)
<S>                                                              <C>              <C>
(in thousands)
OPERATING ACTIVITIES
Net Income                                                       $    769         $    611
Adjustments to Reconcile Net Income to
   Net Cash Provided by Operating Activities:
Provision for Loan Losses                                             195              180
Depreciation and Amortization                                         287              280
Amortization of Securities Discount                                     2                5
Gains on the Sale of Loans                                            (87)             (72)
Increase in Other Assets                                             (168)            (491)
Increase in Other Liabilities                                          29               94
Increase/(Decrease) in Unearned Income                                  6              (11)
                                                                 --------         --------
Net Cash Provided By Operating Activities                           1,033              596
                                                                 --------         --------

INVESTING ACTIVITIES
Increase in Interest Bearing Time Deposits                           (390)          (1,803)
Proceeds from Maturities of Securities
   Available for Sale                                              12,639            1,954
   Held to Maturity                                                 1,913            1,093
Purchases of Securities
   Available for Sale                                              (3,288)          (2,991)
   Held to Maturity                                               (21,708)            (475)
   Equity Securities                                                  (60)              --
Increase in Loans, Net                                             (8,816)         (12,517)
Capital Expenditures                                                 (572)            (323)
                                                                 --------         --------
Net Cash Used for Investing Activities                            (20,282)         (15,062)
                                                                 --------         --------

FINANCING ACTIVITIES
Net Increase in Demand Deposits                                    18,021           14,369
Net Increase in Savings Deposits                                    4,028            1,112
Net Increase in Money Market Deposits                               4,922              939
Net Increase in Time Deposits                                      15,172            6,053
Decrease in Federal Funds Purchased                                  (325)              --
Increase in Other Borrowings                                        2,000               --
Decrease in Obligation Under Capital Lease                             (4)              (3)
Proceeds from the Issuance of Common Stock, Net                       173               66
Purchase of Common Stock, Net                                         (15)              --
                                                                 --------         --------
Net Cash Provided by Financing Activities                          43,972           22,536
                                                                 --------         --------

Increase in Cash and Cash Equivalents                              24,723            8,070
Cash and Cash Equivalents, Beginning of Year                        8,358            9,428
                                                                 --------         --------
Cash and Cash Equivalents, End of Period                         $ 33,081         $ 17,498
                                                                 ========         ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   INFORMATION
Cash Paid During the Year for Interest                           $  4,695         $  3,592
                                                                 ========         ========
Cash Paid During the Year for Federal Income Taxes               $    453         $    395
                                                                 ========         ========
</TABLE>




<PAGE>



                          SVB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            June 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. 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 six months ended June 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 June 30, 2001 and December 31, 2000 the composition of
outstanding loans is summarized as follows:

                                                       June 30,   December 31,
                                                         2001        2000
                                                       --------    --------
               (in thousands)
               Secured by Real Estate:
                  Residential Mortgage                 $ 57,547    $ 55,357
                  Commercial Mortgage                    61,017      57,223
                  Construction                           18,104      12,561
               Commercial and Industrial                 32,575      33,429
               Loans to Individuals for Automobiles       8,037       8,583
               Loans to Individuals                       9,878      11,721
               Other Loans                                  906         344
                                                       --------    --------
                                                       $188,064    $179,218
                                                       ========    ========


               Loans totaling $160,000 were restructured during July of 2001
There were no loans restructured during 2000. There were no loans past due 90
days or more and still accruing at June 30, 2001 or December 31, 2000. Loans in
non-accrual status totaled $624,000 at June 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:

                                                    Six Months
                                                       Ended        Year Ended
                                                      June 30,      December 31,
               (in thousands)                           2001            2000
                                                      -------         -------
               Balance January 1,                     $ 1,823         $ 1,550
               Provision Charged to Operations            195             375
               Charge Offs                                (70)           (137)
               Recoveries                                  13              35
                                                      -------         -------
               Balance End of Period                  $ 1,961         $ 1,823
                                                      =======         =======

4. Guaranteed Preferred Beneficial Interest in Corporation Subordinated
   Debentures

               In June 2001, the Company signed a letter of intent to
participate 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.

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.

<PAGE>

               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.

               Additionally, the Company has entered into an agreement with
National Discount Brokers to provide an Internet link that enables our customers
to carry out discounted trading from our web site. The Company shares in revenue
based on the number of users as well as transaction volume.

               The Company has entered 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 six months of 2001 was $769,000, an
increase of $158,000 or 26% as compared to the same period in 2000. Earnings per
share-Basic were $.25 in 2001 and $.20 in 2000. Earnings per share- Diluted were
$.24 in 2001 and $.19 in 2000.

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

Net Interest Income

               Net interest income for the first six months of 2001 was $5.2
million compared to $4.8 million in 2000, an increase of $398,000 or 8%.

               Almost all of the increase can be attributed to an increase in
average earnings assets. Average earning assets for the first six months of 2001
were $248.7 million, an increase of $46.4 million or 23% from the same period
last year. Loans averaged $186.2 million during the six months of 2001, an
increase of $26.9 million from last year. The increase in loan balances caused
interest income to increase $1.1 million. Security investments averaged $41.2
million, an increase of $9.4 million from the same period last year. The yield
on loans decreased from 9.00% in 2000 to 8.73% in 2001. The decrease in yield
caused interest income on loans to decrease $196,000. The yield on earning
assets was 8.01% for 2001 and 8.39% for 2000. The effects of the 275 basis
points decrease in the prime rate this year are reflected in the yield. Overall,
interest income increased $1.4 million.

<PAGE>

               The overall cost of interest-bearing liabilities increased from
4.34% to 4.53%. Total interest-bearing deposits increased $39.7 million during
the first six months of 2001 to $208.0 million of which time deposits accounted
for 72% of the increase. The increase in deposits caused interest expense to
increase $921,000. An increase in rates paid on deposits, most notably
certificates of deposits caused interest expense to increase $119,000. The
Company has remained competitive in the pricing of its certificates of deposit
during the current downward rate trend. Overall, interest expense increased $1.0
million and the cost of funding earning assets increased from 3.61% in 2000 to
3.79% in 2001.

               The net result of the change in net interest income for the first
six months of 2001 versus the first half of 2000 was an increase of $398,000.
The net interest margin decreased from a 4.78% to a 4.22% 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 $195,000 in the first six
months of 2001 as compared to $180,000 in the first six 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 $22.4 million since June 30, 2000.

Other Income

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

               During the first six months of 2001, total other income increased
$184,000 or 42% over the same period in 2000. Service charges on deposit
accounts increased $119,000 or 46% 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 84% and 47% over last year's
service charges, respectively, and were the primary contributors to the
increase.

               Gains on the sale of total loans increased $15,000 or 21% from
the same period 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 15% over the
same period for last year.




<PAGE>



               Other income increased $50,000 or 45% compared to 2000, primarily
a result of increased mortgage processing fees, which represent $32,000 or 64%
of this increase. Safe deposits rents increased $8,000 as a result of the
additional branch offices.

Other Expense

               Other expenses for the six months ended June 30, 2001 increased
$321,000 or 8% from the same period in 2000. Total assets have grown $57.2
million or 25% since June 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 $173,000 or 9% from the
same period last year. Rent on our recently opened Edison branch and increased
depreciation on other facilities resulted in a $57,000 or 9% increase in
occupancy costs. Equipment expense increased $6,000 due to increased
depreciation and maintenance costs. Other expense increased $85,000 or 7%, due
to increased insurance expense and FDIC assessment.

Financial Condition
June 30, 2001 compared to December 31, 2000

               Total assets increased $44.9 million or 19% from December 31,
2000. Total loans increased $8.8 million. Loans secured by real estate increased
$11.5 million. While other loans also showed an increase of $600,000, all other
categories showed a decrease. Loans to individuals, commercial and industrial
loans and loans to individuals for automobiles decreased $1.8 million, $900,000
and $500,000, respectively.

               Deposits increased $42.1 million or 19% during the first six
months of 2001. All categories of deposits improved during the period with
certificates of deposits and NOW accounts growing by $15.2 million and $14.2
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 has also benefited from the recent
merger of Fleet Bank and Summit Bank.

               Investment securities grew $10.7 million since December 31, 2000
as a result of deposit growth out pacing loan growth.

Asset Quality

               There were no loans past due 90 days or more and still accruing
as of June 30, 2001 and December 31,
2000.

               Loans in a non-accrual status totaled $624,000 at June 30, 2001
and $482,000 at December 31, 2000 and represented .33% of total loans as of June
30, 2001 and .27% as of December 31, 2000.

               Loans considered to be impaired totaled $616,000 at June 30,
2001, a valuation reserve of $155,000 is attributed to these loans.

               The Company had no other real estate owned at June 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


<PAGE>


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.

               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 nine-year history, the Company has very little
commercial loan loss history, 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 June 30, 2001, the allowance for loans loss was $1,961,000 and
represented 1.04% of total loans and 314.26% 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 six months of 2001 totaled $70,000
compared to $137,000 for the year ended December 31, 2000.



<PAGE>


Capital Resources

               Total Shareholders' Equity was $18,455,000 at June 30, 2001
compared to $17,366,000 at December 31, 2000.

               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.

                                                June 30,    December 31,
                                                  2001         2000
                                                --------     --------
Total Capital to Risk Weighted Assets            9.41%        9.68%
Tier I Capital to Risk Weighted Assets           8.45%        8.71%
Leverage Ratio                                   6.47%        7.31%

Liquidity

               Cash and Cash Equivalents totaled $33.1 million at June 30, 2001
an increase of $24.7 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 $44.0 million. Demand deposits and
certificate of deposits experienced the largest increases for the six-month
period of $18.0 million and $15.2 million, respectively.

               An increase in loans and purchases of investment securities
resulted in net cash used for investing activities of $20.3 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
                             -----------------
                             On July 6, 1998, the common stock of the Company
                             began trading on the Nasdaq National Market, under
                             the trading symbol SVBF. On June 30, 2001, the
                             closing bid of the Company's common stock was $9.00
                             per share.

                             Effective in July 1999, the Company has a web site
                             and can be located on 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 six
                             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: August 8, 2001                 By: /s/ Keith B. McCarthy
                                         --------------------------
                                         Keith B. McCarthy
                                         Executive Vice President
                                         Chief Accounting Officer