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, 2002

                                       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, 2002  there were  3,452,948  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, 2002 and December 31, 2001                        2002        2001
                                                         -----------------------
                                                        (Unaudited)
<S>                                                     <C>           <C>
(in thousands)
ASSETS
Cash & Due from Banks                                   $  17,869     $  16,583
Federal Funds Sold                                         13,068         9,585
Other Short Term Investments                                5,085         5,519
                                                         -----------------------
Total Cash and Cash Equivalents                            36,022        31,687
                                                         -----------------------

Interest Bearing Time Deposits                             12,055         9,670

Securities
 Available for Sale, at Fair Value                         40,910        29,052
 Held to Maturity (Fair Value $52,594 in 2002              52,122        41,509
 and $41,829 in 2001)
                                                         -----------------------
Total Securities                                           93,032        70,561
                                                         -----------------------

Loans                                                     225,409       209,592
 Allowance for Loan Losses                                (2,201)        (2,111)
 Unearned Income                                            (323)          (201)
                                                         -----------------------
Net Loans                                                 222,885       207,280
                                                         -----------------------

Premises & Equipment, Net                                   5,674         5,164
Other Assets                                                4,397         3,943
                                                         -----------------------
Total Assets                                            $ 374,065     $ 328,305
                                                         =======================
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
  Non-interest Bearing                                  $  46,472     $  40,993
  NOW                                                      63,001        56,965
Savings                                                    42,713        35,200
Money Market                                               50,864        37,131
Time
  Greater than $100,000                                    20,965        26,865
  Less than $100,000                                      112,538       100,320
                                                         -----------------------
Total Deposits                                            336,553       297,474
                                                         -----------------------

Other Borrowings                                            7,732         5,747
Obligation Under Capital Lease                                415           419
Guaranteed Beneficial Interest in the Corporation
 Subordinated Debentures                                    6,500         4,000
                                                         -----------------------
Total Borrowings                                           14,647        10,166
                                                         -----------------------

Other Liabilities                                           1,247         1,037
                                                         -----------------------
Total Liabilities                                         352,447       308,677
                                                         -----------------------

SHAREHOLDERS' EQUITY
Common Stock $2.09 Par Value: 20,000,000                    7,217         6,932
 Shares Authorized; 3,452,948 Shares in 2002 and
 3,316,724 Shares in 2001 Issued and Outstanding
Additional Paid-in Capital                                  9,198         8,690
Retained Earnings                                           4,889         3,762
Accumulated Other Comprehensive Income                        314           244
                                                         -----------------------
Total Shareholders' Equity                                 21,618        19,628
                                                         -----------------------
Total Liabilities and Shareholders' Equity              $ 374,065     $ 328,305
                                                        ========================
</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,                             2002            2001         2002           2001
                                                      ------------------------------------------------------
                                                         (Unaudited) (Unaudited)    (Unaudited) (Unaudited)
<S>                                                        <C>         <C>          <C>         <C>
(in thousands)
INTEREST INCOME
Loans                                                       $ 3,990     $ 4,017       $ 7,763     $ 8,063
Securities Available for Sale                                   426         379           796         887
Securities Held to Maturity                                     586         245         1,130         353
Other Short Term Investments                                     21           1            49           2
Interest Bearing Time Deposits                                  134         140           266         279
Federal Funds Sold                                               58         169           149         295
                                                            ---------------------------------------------
Total Interest Income                                         5,215       4,951        10,153       9,879
                                                            ---------------------------------------------

INTEREST EXPENSE
Deposits                                                      1,731       2,279         3,538       4,650
Other Borrowings                                                 79           4           158           4
Obligation Under Capital Lease                                    9           9            18          18
Subordinated Debentures                                          57          --           113          --
                                                            ---------------------------------------------
Total Interest Expense                                        1,876       2,292         3,827       4,672
                                                            ---------------------------------------------

Net Interest Income                                           3,339       2,659         6,326       5,207
PROVISION FOR LOAN LOSSES                                       135          90           235         195
                                                            ---------------------------------------------
Net Interest Income after Provision for Loan Losses           3,204       2,569         6,091       5,012
                                                            ---------------------------------------------

OTHER INCOME
Service Charges on Deposit Accounts                             221         196           414         377
Gains on the Sale of Securities Available for Sale, Net          15          --            23          --
Gains on the Sale of Loans                                       83          56           123          87
Other Income                                                    140          93           268         162
                                                            ---------------------------------------------
Total Other Income                                              459         345           828         626
                                                            ---------------------------------------------


OTHER EXPENSE
Salaries and Employee Benefits                                1,346       1,111         2,656       2,204
Occupancy Expense                                               384         325           767         669
Equipment Expense                                               135         122           266         240
Other Expenses                                                  770         667         1,428       1,308
                                                            ---------------------------------------------
Total Other Expense                                           2,635       2,225         5,117       4,421
                                                            ---------------------------------------------

Income Before Provision for Income Taxes                      1,028         689         1,802       1,217
Provision for Income Taxes                                      379         257           675         448
                                                            ---------------------------------------------
Net Income                                                  $   649     $   432       $ 1,127     $   769
                                                            ---------------------------------------------

EARNINGS PER SHARE - Basic (1)                              $  0.19     $  0.13       $  0.33     $  0.24
                                                            =============================================
EARNINGS PER SHARE - Diluted (1)                            $  0.19     $  0.13       $  0.33     $  0.23
                                                            =============================================
</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 June 30,

                                                         For the Three Months Ended   For the Six Months Ended
                                                                2002        2001           2002        2001
                                                         --------------------------------------------------------
                                                            (Unaudited)    (Unaudited)  (Unaudited)  (Unaudited)
<S>                                                            <C>          <C>           <C>          <C>
(in thousands)

Net Income                                                      $  649       $  432        $1,127       $  769
Other Comprehensive Income, Net of Tax
 Unrealized Gains/(Losses) Arising in the Period                   268         (45)            70          162
                                                         --------------------------------------------------------
Comprehensive Income                                            $  917       $  387        $1,197       $  931
                                                         ========================================================
</TABLE>


<PAGE>


<TABLE>
<CAPTION>

SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Period Ended June 30,                                    2002          2001
                                                              ------------------------
                                                              (Unaudited)   (Unaudited)
<S>                                                           <C>         <C>
(in thousands)
OPERATING ACTIVITIES
Net Income                                                     $  1,127    $    769
 Adjustments to Reconcile Net Income to
 Net Cash Provided by Operating Activities:
Provision for Loan Losses                                           235         195
Depreciation and Amortization                                       310         287
Amortization of Securities Premium                                  231           2
Gains on the Sale of Securities
 Available for Sale, Net                                            (23)         --
Gains on the Sale of Loans                                         (123)        (87)
Increase in Other Assets                                           (491)       (168)
Increase in Other Liabilities                                       210          29
Increase in Unearned Income                                         122           6
                                                               ----------------------
Net Cash Provided By Operating Activities                         1,598       1,033
                                                               ----------------------

INVESTING ACTIVITIES
Increase in Interest Bearing Time Deposits                       (2,385)       (390)
Proceeds from the Sale of Securities
 Available for Sale                                               2,529          --
Proceeds from Maturities of Securities
 Available for Sale                                               5,142      12,639
 Held to Maturity                                                10,063       1,913
Purchases of Securities
 Available for Sale                                             (19,484)     (3,348)
 Held to Maturity                                               (20,822)    (21,708)
Increase in Loans, Net                                          (15,839)     (8,816)
Capital Expenditures                                               (820)       (572)
                                                               ----------------------
Net Cash Used for Investing Activities                          (41,616)    (20,282)
                                                               ----------------------

FINANCING ACTIVITIES
Net Increase in Demand Deposits                                  11,515      18,021
Net Increase in Savings Deposits                                  7,513       4,028
Net Increase in Money Market Deposits                            13,733       4,922
Net Increase in Time Deposits                                     6,318      15,172
Decrease in Federal Funds Purchased                                  --        (325)
Increase in Other Borrowings                                      1,985       2,000
Decrease in Obligation Under Capital Lease                           (4)         (4)
Issuance of Guaranteed Beneficial Interest in the Corporation
 Subordinated Debentures                                          2,500          --
Proceeds from the Issuance of Common Stock, Net                     793         173
Purchase of Common Stock, Net                                        --         (15)
                                                               ----------------------
Net Cash Provided by Financing Activities                        44,353      43,972
                                                               ----------------------
Increase in Cash and Cash Equivalents                             4,335      24,723
Cash and Cash Equivalents, Beginning of Year                     31,687       8,358
                                                               ----------------------
Cash and Cash Equivalents, End of Period                       $ 36,022    $ 33,081
                                                               ======================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash Paid During the Year for Interest                         $  3,898    $  4,695
                                                               ======================
Cash Paid During the Year for Federal Income Taxes             $    625    $    453
                                                               ======================
</TABLE>



<PAGE>


                          SVB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            June 30, 2002 (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 and SVB Bald Eagle
Statutory  Trust II,  subsidiaries  of the Company,  were 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.
During the first  quarter of 2002,  Somerset  Valley  Investment  Company,  Inc.
became the parent company of West End One Corp., a company  incorporated  in the
State of  Delaware  which  manages an  investment  portfolio  for the benefit of
Somerset Valley Investment Company.

     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,  2002 are not
necessarily  indicative  of the results  that may be expected for the year ended
December 31, 2002.

     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, 2002 and December 31, 2001 the composition of outstanding loans
is summarized as follows:

<TABLE>
<CAPTION>
                                                                  June 30,     December 31,
                                                                    2002          2001
                                                                --------------------------
              <S>                                               <C>            <C>
              (in thousands)
              Secured by Real Estate:
                 Residential Mortgage                            $ 70,560       $ 67,598
                 Commercial Mortgage                               92,687         75,905
                 Construction                                      24,230         21,438
              Commercial and Industrial                            23,689         28,105
              Loans to Individuals for Automobiles                  5,138          6,640
              Loans to Individuals                                  8,774          9,249
              Other Loans                                             331            657
                                                                 -----------------------
                                                                 $225,409       $209,592
                                                                 =======================
</TABLE>


     There were no loans restructured  during 2002. Loans totaling $301,000 were
restructed as of December 31, 2001. There were loans totaling  $135,000 past due
90 days or more and still  accruing at June 30,  2002.  There were no loans past
due 90 days or more and  still  accruing  at  December  31,  2001.  Loans in non
accrual  status  totaled  $542,000 at June 30, 2002 and $510,000 at December 31,
2001.

<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:

<TABLE>
<CAPTION>
                                                      Six Months
                                                        Ended             Year Ended
                                                       June 30,           December 31,
                                                          2002               2001
                                                      -----------         ------------
             <S>                                     <C>                 <C>
             (in thousands)
              Balance January 1,                      $    2,111          $    1,823
              Provision Charged to Operations                235                 365
              Charge Offs                                   (175)               (109)
              Recoveries                                      30                  32
                                                      -----------         ------------
              Balance End of Period                   $    2,201          $    2,111
                                                      ===========         ============
</TABLE>


4.   Guaranteed  Preferred  Beneficial  Interest  in  Corporation   Subordinated
     Debentures

     The Company  participates in two pooled  institutional  placements of trust
preferred securities arranged by a third party. 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.  This  subordinated
debenture  will be redeemed in the year 2031. At June 30, 2002, the rate paid on
this subordinated  debenture of $4 million based on 3-month LIBOR plus 358 basis
points was 5.50% and is adjusted in January, April, July and October.

     On June 25,  2002,  the Company  purchased  common  stock of SVB Bald Eagle
Statutory Trust II and funding of the trust  preferred  securities took place on
June 26, 2002. This subordinated debenture will be redeemed in the year 2032. At
June 30,  2002,  the rate paid on this  subordinated  debenture  of $2.5 million
based on 3-month LIBOR plus 345 basis points was 5.34% and is adjusted in March,
June, September and December.

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 has adopted SFAS No. 141 and SFAS
No. 142 and these  Statements  did 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  Company  has
adopted  SAB No.  102 and it did not have a  material  impact  on the  Company's
financial position or results of operations.

     In  August  2001,  the  FASB  issued  SFAS  No.  144,  "Accounting  for the
Impairment or Disposal of Long-Lived  Assets." SFAS No. 144 retains the existing
requirements to recognize and measure the impairment of long-lived  assets to be
held and used or to be disposed of by sale. However,  SFAS No. 144 makes changes
to the  scope  and  certain  measurement  requirements  of  existing  accounting
guidance.

<PAGE>


SFAS No. 144 also changes the requirements  relating to reporting the effects of
a  disposal  or  discontinuation  of a segment  of a  business.  SFAS No. 144 is
effective  for  financial  statements  issued for fiscal years  beginning  after
December 15, 2001 and interim periods within those fiscal years. The Company has
adopted SFAS No. 144 and it did not have a  significant  impact on the financial
condition or results of the operations of the Company.

     On January 1, 2002, the Company  adopted  Statement of Position (SOP) 01-6,
Accounting by Certain Entities That Lend to or Finance the Activities of Others,
which  reconciles  and  conforms  existing  differences  in the  accounting  and
financial reporting guidance in the AICPA Audit and Accounting Guides, Banks and
Savings Institutions,  Audits of Credit Unions, and Audits of Finance Companies.
It also carries forward accounting guidance for practices deemed to be unique to
certain  financial  institutions.  The adoption of this SOP had no 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.

     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,  certain Bank  employees  are licensed to sell
insurance.

     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 Operations
---------------------

     Net income for the first six months of 2002 was $1,127,000,  an increase of
$358,000 or 47% as compared to the same period in 2001. Earnings per share-Basic
were $.33 in 2002 and $.24 in 2001.  Earnings  per share-  Diluted  were $.33 in
2002 and $.23 in 2001.  Earnings  per  share  have been  restated  for the stock
dividend.

<PAGE>


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

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

     Net  interest  income  for the  first six  months of 2002 was $6.3  million
compared to $5.2 million in 2001, an increase of $1.1 million or 21%.

     Almost all of the  increase  can be  attributed  to an  increase in average
earnings  assets.  Average  earning assets for the first six months of 2002 were
$337.9  million,  an increase of $89.2  million or 36% from the same period last
year.  Loans averaged  $217.0 million during the six months of 2002, an increase
of $30.8  million or 17% from last year.  The increase in loan  balances  caused
interest income to increase $1.2 million.  Investment  securities averaged $84.7
million, an increase of $43.5 million or 105% from the same period last year.

     The  yield  on loans  decreased  from  8.73% in 2001 to 7.21% in 2002.  The
decrease in yield caused interest income on loans to decrease $1.5 million.  The
yield on earning  assets was 6.06% for 2002 and 8.01% for 2001.  The  effects of
the 200  basis  points  decrease  in the  prime  rate  since  June 30,  2001 are
reflected in the yield. Overall,  interest income increased $274,000 as a result
of increase in balances.

     The  overall  cost of  interest-bearing  liabilities  decreased  from 4.53%
during  2001 to 2.66% this year.  Average  interest-bearing  deposits  increased
$71.5 million during the first six months of 2002 to $278.8 million. Compared to
last year both savings deposits and money market deposits had significant growth
increasing 125% and 87%, respectively.  The increase in deposits caused interest
expense to increase $887,000.  A decline in rates paid on all types of deposits,
caused interest expense to decrease $2.0 million. The Bank has made an effort to
control its interest cost while  remaining  competitive.  Advances from the FHLB
and the  subordinated  debentures  accounted  for $7.0 million and $4.1 million,
respectively, of the increase in total interest-bearing liabilities.

     The increase in interest  income and the  decrease in interest  expense for
the first six months of 2002 versus the same period of 2001 caused net  interest
to increase $1.1 million.  The net interest margin decreased from 4.22% to 3.78%
as a result of the impact of the interest rate reductions by the Federal Reserve
which totaled 475 basis points during 2001.

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

     The  provision for loan losses was $235,000 in the first six months of 2002
as  compared to $195,000  during the first six months of 2001.  The  increase in
provision  is based on the  Company's  most  recent  analysis  and can mostly be
attributed to growth in loans of $37.3 million since June 30, 2001 along with an
increase in net charge offs of $65,000 for the comparable periods.

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

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

     During the first six months of 2002, total other income increased  $202,000
or 32%  over the same  period  in 2001.  Service  charges  on  deposit  accounts
increased  $37,000 or 10% from 2001.  The growth in the number of commercial and
consumer checking  accounts and increases in service charge pricing  contributed
to this  increase.  Additionally,  income  derived  from  sweep  accounts,  wire
transfer  fees and foreign  transaction  fees at the Company's ATM machines have
all increased from last year.

     The Bank recognized net gains on the sale of securities  available for sale
of $23,000 during the first six months of 2002. No gains were recognized  during
2001.

<PAGE>


     Gains on the sale of total  loans  increased  $36,000  or 41% from the same
period in 2001.  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.

     Other  income  increased  $106,000 or 65% as compared to 2001.  Included in
this amount is a one time gain of $51,000 resulting from the  demutualization of
the Company's health insurance provider. Mortgage servicing fees and income from
Visa/Master Card increased $24,000 and $9,000, respectively.

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

     Other  expenses  for the first six  months  ended June 30,  2002  increased
$696,000  or 16% from the same  period in 2001.  Total  assets  have grown $87.5
million or 31% since June 30, 2001. Because of the growth in assets, the Company
has had to hire additional personnel.  In addition, the Company added the Edison
office to its  branch  network in May of 2001.  These  additions,  coupled  with
normal salary increases,  caused salary and benefits to increase $452,000 or 21%
from the same  period last year.  Rent on our  recently  relocated  Hillsborough
branch  and  increases  in  depreciation  expense  resulted  in a $98,000 or 15%
increase in occupancy costs.  Rent on the former  Hillsborough  location will be
expensed  through its lease  period  ending  December  2003.  Equipment  expense
increased $26,000 or 11% from 2001, due to increased  computer  depreciation and
maintenance and repairs on computer equipment.  Other expense increased $120,000
or 9% from the same period last year.  Miscellaneous  outside services increased
$49,000 or 52% from the same  period  last year due to  increased  correspondent
bank charges.

Financial Condition
June 30, 2002 compared to December 31, 2001
-------------------------------------------

     Total assets were $374.1 million at June 30, 2002 increasing  $45.8 million
or 14% from  December 31,  2001.  Total loans  increased  $15.8  million.  Loans
secured by real estate grew by $22.5 million.  Commercial  and industrial  loans
and  loans to  individuals  for  automobiles  decreased  $4.4  million  and $l.5
million, respectively.

     Deposits  increased  $39.1  million  or 13%  during the first six months of
2002. All categories of deposits  improved  during the period with the exception
of certificates of deposits greater than $100,000. Money market deposits grew by
$13.7 million,  $7.1 million of this growth was a transfer from  certificates of
deposits  greater than $100,000 by one customer.  Certificates  of deposits less
than  $100,000,  savings  deposits and NOW accounts  increased by $12.2 million,
$7.5  million  and  $6.0  million,   respectively.   The  Company  has  remained
competitive in the pricing of its  certificates  of deposits and believes it has
benefited from the decline in the stock market  causing  customers to move funds
to insured instruments.

     Investment securities and interest-bearing time deposits grew $22.5 million
and $2.4 million as a result of deposit growth out pacing loan growth.

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

     There  were  loans  totaling  $135,000  past due 90 days or more and  still
accruing as of June 30,  2002.  There were no loans past due 90 days or more and
still accruing as of December 31, 2001.

     Loans  in a  non-accrual  status  totaled  $542,000  at June  30,  2002 and
$510,000 at December 31, 2001 and represented .24% of total loans as of June 30,
2002 and  December  31,  2001.  The balance of existing  restructured  loans was
$287,000 as of June 30, 2002 and $301,000 as of December 31, 2001.

<PAGE>



     Loans  considered  to be  impaired  totaled  $684,000 at June 30,  2002,  a
valuation reserve of $57,000 is attributed to these loans.

     The Company had no other real estate owned at June 30, 2002.

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.

     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 amount  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.

<PAGE>


     At June 30,  2002,  the  allowance  for loan  losses was $2.2  million  and
represented .98% of total loans and 265.50% of non-performing  loans compared to
an  allowance  for loan losses at December  31, 2001 of $2.1 million or 1.01% of
total loans and 260.30% of non-performing loans at December 31, 2001.

     Net charge-offs for the first six months of 2002 totaled $145,000  compared
to $77,000 for the year ended  December 31, 2001.  Most of the  charge-offs  for
2002 were  concentrated in one loan,  which occurred during the first quarter of
this year.

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

     Total  Shareholders'  Equity was $21.6 million at June 30, 2002 compared to
$19.6  million at December 31, 2001.  Subordinated  debentures  in the amount of
$6.5 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.

                                                     June 30,       December 31,
                                                      2002              2001
                                                      ----              ----
        Total Capital to Risk Weighted Assets         10.43%           10.39%
        Tier I Capital to Risk Weighted Assets        11.29%            9.50%
        Leverage Ratio                                 7.34%            7.86%


Liquidity
---------

     Cash and Cash  Equivalents  totaled  $36.0  million  at June 30,  2002,  an
increase of $4.3 million since December 31, 2001.

     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 $44.4 million. Money market deposits and demand deposits
experienced the largest  increases for the six month period of $13.7 million and
$11.5 million, respectively. An additional $2.5 million was provided through the
issuance of subordinated  debentures.  These increases were almost offset by net
cash used for investing  activities of $41.6  million.  Investment in securities
and loans  accounted  for $40.3  million and $15.8  million,  respectively.  The
remainder of the increase of cash and cash  equivalents was related to operating
activities.

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 32-34  "Interest  Rate  Sensitivity  Analysis" in the
2001 Annual Report. There were no changes in the Federal Funds rate or the prime
lending  rate  during  the first  half of 2002.  The  Company  did  continue  to
experience the effects of the eleven interest rate decreases  totaling 475 basis
points in 2001.  The  Company's  net  interest  margin  was 3.80% in the  fourth
quarter of 2001 and was 3.78% for the period  ending June 30, 2002.  The average
net interest margin for the calendar years  1999-2001 was 4.43%.  There has been
no material changes in market risk since December 31, 2001.

<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 June 30,
              2002,  the closing  bid of the  Company's  common  stock was
              $11.75 per share.

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

ITEM 6-       Exhibits and Reports on Form 8-K
              --------------------------------
        (a)   Exhibits
              --------
              None

        (b)   Form 8-K
              --------
              There have been two Form 8-Ks filed during the six months of
              2002.

                        January 22, 2002 - Fourth Quarter Earnings
                        April 17, 2002----- First Quarter Earnings


                                   SIGNATURES

I, Robert P.  Corcoran,  hereby  certify  that the  periodic  report being filed
herewith containing financial statements fully complies with the requirements of
section 13(a) or 15(d) of the Securities Exchange Act of 1934 (16 U.S. C. 78m or
78o(d) and that  information  contained in said periodic report fairly presents,
in all material respects,  the financial  condition and results of operations of
SVB Financial Services, Inc. for the period covered by said periodic report.


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



                                                   /s/ Robert P. Corcoran
                                                   ----------------------------
                                                   Robert P. Corcoran
                                                   Chief Executive Officer








I, Keith B.  McCarthy,  hereby  certify  that the  periodic  report  being filed
herewith containing financial statements fully complies with the requirements of
section 13(a) or 15(d) of the Securities Exchange Act of 1934 (16 U.S. C. 78m or
78o(d) and that  information  contained in said periodic report fairly presents,
in all material respects,  the financial  condition and results of operations of
SVB Financial Services, Inc. for the period covered by said periodic report.


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





                                                   /s/ Keith B. McCarthy
                                                   -----------------------------
                                                   Keith B. McCarthy
                                                   Chief Financial Officer
                                                   Chief Accounting Officer

Dated:  August 1, 2002