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 March 31, 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 May 1, 2002 there were 3,441,222 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>

                         PART I - FINANCIAL INFORMATION

ITEM 1   -  Financial Statements and Notes to Consolidated Financial Statements

<TABLE>
<CAPTION>

SVB FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS                                 March 31,     December 31,
March 31, 2002 and December 31, 2001                          2002           2001
                                                           ----------------------------
(in thousands)                                            (Unaudited)
<S>                                                        <C>             <C>
ASSETS
Cash & Due from Banks                                      $  11,847       $  16,583
Federal Funds Sold                                            16,516           9,585
Other Short Term Investments                                   4,546           5,519
                                                           ----------------------------
Total Cash and Cash Equivalents                               32,909          31,687
                                                           ----------------------------

Interest Bearing Time Deposits                                11,464           9,670

Securities
   Available for Sale, at Fair Value                          38,834          29,052
   Held to Maturity  (Fair Value $49,800 in 2002              49,827          41,509
      and $41,829 in 2001)
                                                           ----------------------------
Total Securities                                              88,661          70,561
                                                           ----------------------------

Loans                                                        216,278         209,592
   Allowance for Loan Losses                                  (2,054)         (2,111)
   Unearned Income                                              (253)           (201)
                                                           ----------------------------
Net Loans                                                    213,971         207,280
                                                           ----------------------------

Premises & Equipment, Net                                      5,494           5,164
Other Assets                                                   4,355           3,943
                                                           ----------------------------
Total Assets                                               $ 356,854       $ 328,305
                                                           ============================
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
   Non-interest Bearing                                    $  48,991       $  40,993
   NOW                                                        53,577          56,965
Savings                                                       44,966          35,200
Money Market                                                  44,529          37,131
Time
   Greater than $100,000                                      26,012          26,865
   Less than $100,000                                        105,528         100,320
                                                           ----------------------------
Total Deposits                                               323,603         297,474
                                                           ----------------------------

Other Borrowings                                               7,238           5,747
Obligation Under Capital Lease                                   417             419
Subordinated Debentures                                        4,000           4,000
                                                           ----------------------------
Total Borrowings                                              11,655          10,166
                                                           ----------------------------

Other Liabilities                                              1,339           1,037
                                                           ----------------------------
Total Liabilities                                            336,597         308,677
                                                           ----------------------------

SHAREHOLDERS' EQUITY
Common Stock $2.09 Par Value: 20,000,000                       7,051           6,932
   Shares Authorized; 3,373,912 Shares in 2002 and
   3,316,724 Shares in 2001 Issued and Outstanding
Additional Paid-in Capital                                     8,919           8,690
Retained Earnings                                              4,240           3,762
Accumulated Other Comprehensive Income                            40             244
                                                           ----------------------------
Total Shareholders' Equity                                    20,257          19,628
                                                           ----------------------------
Total Liabilities and Shareholders' Equity                 $ 356,854       $ 328,305
                                                           ============================
</TABLE>




<PAGE>

<TABLE>
<CAPTION>

SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME                          For the Three Months Ended
For the Period Ended March 31,                                  2002         2001
                                                           --------------------------
                                                            (Unaudited) (Unaudited)
<S>                                                           <C>          <C>
(in thousands)
INTEREST INCOME
Loans                                                         $3,773       $4,046
Securities Available for Sale                                    370          508
Securities Held to Maturity                                      544          108
Other Short Term Investments                                      28            1
Interest Bearing Time Deposits                                   132          139
Federal Funds Sold                                                91          126
                                                           --------------------------
Total Interest Income                                          4,938        4,928
                                                           --------------------------

INTEREST EXPENSE
Deposits                                                       1,807        2,371
Other Borrowings                                                  79           --
Obligation Under Capital Lease                                     9            9
Subordinated Debentures                                           56           --
                                                           --------------------------
Total Interest Expense                                         1,951        2,380
                                                           --------------------------

Net Interest Income                                            2,987        2,548
PROVISION FOR LOAN LOSSES                                        100          105
                                                           --------------------------
Net Interest Income after Provision for Loan Losses            2,887        2,443
                                                           --------------------------

OTHER INCOME
Service Charges on Deposit Accounts                              193          181
Gains on the Sale of Securities Available for Sale, Net            8           --
Gains on the Sale of Loans                                        40           31
Other Income                                                     128           69
                                                           --------------------------
Total Other Income                                               369          281
                                                           --------------------------

OTHER EXPENSE
Salaries and Employee Benefits                                 1,310        1,093
Occupancy Expense                                                383          344
Equipment Expense                                                131          118
Other Expenses                                                   658          641
                                                           --------------------------
Total Other Expense                                            2,482        2,196
                                                           --------------------------

Income Before Provision for Income Taxes                         774          528
Provision for Income Taxes                                       296          191
                                                           --------------------------
Net Income                                                    $  478       $  337
                                                           ==========================

EARNINGS PER SHARE - Basic (1)                                $ 0.14       $ 0.10
                                                           ==========================
EARNINGS PER SHARE - Diluted (1)                              $ 0.14       $ 0.10
                                                           ==========================
</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 March 31,

                                                      For the Three Months Ended
                                                          2002          2001
                                                     ----------------------------
(in thousands)                                        (Unaudited)   (Unaudited)
<S>                                                     <C>            <C>
Net Income                                              $ 478          $ 337
Other Comprehensive Income, Net of Tax
   Unrealized (Losses)/Gains Arising in the Period       (197)           207
                                                     ----------------------------
Comprehensive Income                                    $ 281          $ 544
                                                     ============================
</TABLE>








<PAGE>

<TABLE>
<CAPTION>

SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Period Ended March 31,                                   2002           2001
                                                           ------------------------------
                                                             (Unaudited)    (Unaudited)
<S>                                                           <C>            <C>
(in thousands)
OPERATING ACTIVITIES
Net Income                                                    $    478       $    337
Adjustments to Reconcile Net Income to
   Net Cash Provided by Operating Activities:
Provision for Loan Losses                                          100            105
Depreciation and Amortization                                      153            144
Amortization/(Accretion) of Securities Premium/Discount            110             (5)
Gains on the Sale of Securities
   Available for Sale                                               (8)            --
Gains on the Sale of Loans                                         (40)           (31)
Increase in Other Assets                                          (310)          (171)
Increase in Other Liabilities                                      302            222
Increase/(Decrease) in Unearned Income                              52            (18)
                                                           ------------------------------
Net Cash Provided by Operating Activities                          837            583
                                                           ------------------------------

INVESTING ACTIVITIES
Increase in Interest Bearing Time Deposits                      (1,794)          (289)
Proceeds from the Sales of Securities Available for Sale           508             --
Proceeds from Maturities of Securities
   Available for Sale                                            1,833          3,967
   Held to Maturity                                              3,485            656
Purchases of Securities
   Available for Sale                                          (12,454)          (565)
   Held to Maturity                                            (11,873)        (5,022)
Increase in Loans, Net                                          (6,803)        (6,213)
Capital Expenditures                                              (483)          (481)
                                                           ------------------------------
Net Cash Used for Investing Activities                         (27,581)        (7,947)
                                                           ------------------------------

FINANCING ACTIVITIES
Net Increase in Demand Deposits                                  4,610          2,664
Net Increase in Savings Deposits                                 9,766          1,175
Net Increase in Money Market Deposits                            7,398          2,338
Net Increase in Time Deposits                                    4,355         14,165
Increase/(Decrease) in Other Borrowings                          1,491           (325)
Decrease in Obligation Under Capital Lease                          (2)            (2)
Proceeds from the Issuance of Common Stock, Net                    348             --
Purchase of Common Stock, Net                                       --            (11)
                                                           ------------------------------
Net Cash Provided by Financing Activities                       27,966         20,004
                                                           ------------------------------
Increase in Cash and Cash Equivalents                            1,222         12,640
Cash and Cash Equivalents, Beginning of Year                    31,687          8,358
                                                           ------------------------------
Cash and Cash Equivalents, End of Period                      $ 32,909       $ 20,998
                                                           ==============================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   INFORMATION
Cash Paid During the Year for Interest                        $  2,015       $  2,408
                                                           ==============================
Cash Paid During the Year for Federal Income Taxes            $    105       $     23
                                                           ==============================
</TABLE>


                          SVB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           March 31, 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, a subsidiary of the
Company,  was created to issue trust preferred  securities to assist the Company
to raise additional  regulatory  capital.  The Bank has one subsidiary  Somerset
Valley  Investment  Company,  Inc.  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 three  months  ended March 31, 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 March 31, 2002 and  December  31, 2001 the  composition  of  outstanding
loans is summarized as follows:

                                                       March 31,  December 31,
                                                         2002         2001
                                                      ----------  ------------
           (in thousands)
           Secured by Real Estate:
              Residential Mortgage                    $ 66,551     $ 67,598
              Commercial Mortgage                       84,760       75,905
              Construction                              22,485       21,438
           Commercial and Industrial                    24,986       28,105
           Loans to Individuals for Automobiles          5,854        6,640
           Loans to Individuals                         11,522        9,249
           Other Loans                                     120          657
                                                      --------     --------
                                                      $216,278     $209,592
                                                      ========     ========

     There were no loans restructured  during 2002. Loans totaling $301,000 were
restructed as of December 31, 2001.  There were loans totaling  $38,000 past due
90 days or more and still  accruing at March 31, 2002.  There were no loans past
due 90 days or more and  still  accruing  at  December  31,  2001.  Loans in non
accrual status  totaled  $461,000 at March 31, 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>
                                                       Three Months
                                                          Ended           Year Ended
                                                         March 31,        December 31,
                                                           2002               2001
                                                       ------------       ------------
           (in thousands)
           <S>                                           <C>               <C>
           Balance January 1,                            $ 2,111           $ 1,823
           Provision Charged to Operations                   100               365
           Charge Offs                                      (163)             (109)
           Recoveries                                          6                32
                                                       -------------------------------
           Balance End of Period                         $ 2,054           $ 2,111
                                                       ===============================
</TABLE>


4.   Guaranteed Preferred Beneficial Interest in Corporation Subordinated
     Debentures

     The  Company  participates  in a pooled  institutional  placement  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 March 31, 2002, the rate paid on
this  subordinated  debenture  based on 3-month  LIBOR plus 358 basis points was
5.45% and is adjusted in January, April, July and October.

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. 14 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.  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.

<PAGE>

     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.  There is also an on-site employee of International Planning Alliance
available to assist customers.

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

Results of Operation

     Net income for the first three months of 2002 was $478,000,  an increase of
$141,000 or 42% as compared to the same period in 2001. Earnings per share-Basic
were $.14 in 2002 and $.10 in 2001.  Earnings  per share-  Diluted  were $.14 in
2002 and $.10 in 2001.  Earnings  per  share  have been  restated  for the stock
dividend.

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

<PAGE>


Net Interest Income

     Net  interest  income for the first three  months of 2002 was $3.0  million
compared to $2.5 million in 2001, an increase of $439,000 or 17%.

     Almost all of the  increase  can be  attributed  to an  increase in average
earnings assets.  Average earning assets for the first three months of 2002 were
$333.3  million,  an increase of $91.8  million or 38% from the same period last
year. Loans averaged $212.9 million during the three months of 2002, an increase
of $28.6 million from last year. The increase in loan balances  caused  interest
income to increase $574,000.  Investment  securities  averaged $79.2 million, an
increase of $39.6 million or 100% from the same period last year.

     The  yield  on loans  decreased  from  8.91% in 2001 to 7.19% in 2002.  The
decrease in yield  caused  interest  income on loans to decrease  $847,000.  The
yield on earning  assets was 6.01% for 2002 and 8.28% for 2001.  The  effects of
the 325  basis  points  decrease  in the prime  rate  since  March 31,  2001 are
reflected in the yield. Overall, interest income increased $10,000.

     The  overall  cost of  interest-bearing  liabilities  decreased  from 4.77%
during 2001 to 2.78% this year. Total interest-bearing  deposits increased $71.3
million during the first three months of 2002 to $273.3 million of which savings
deposits and NOW accounts represented 33% and 28% of the increase, respectively.
The increase in deposits caused interest expense to increase $487,000. A decline
in rates paid on all types of deposits,  most notably  certificates  of deposits
and NOW accounts, caused interest expense to decrease $1.1 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 $4.0  million,  respectively,  of the  increase  in total  interest-
bearing liabilities.

     The net result of the  change in net  interest  income for the first  three
months of 2002 versus the same period of 2001 was an increase of  $439,000.  The
net interest  margin  decreased from 4.28% to 3.63% as a result of the impact of
the interest rate reductions by the Federal Reserve.

Provision for Loan Losses

     The  provision  for loan losses was  $100,000 in the first three  months of
2002 as compared to $105,000 during the first three months of 2001.

Other Income

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

     During the first three months of 2002, total other income increased $88,000
or 31%  over the same  period  in 2001.  Service  charges  on  deposit  accounts
increased  $12,000 or 7% 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 were
all above last year's levels.

     The Bank recognized net gains on the sale of securities  available for sale
of $8,000 during the first quarter of 2002.

     Gains on the  sale of total  loans  increased  $9,000  or 29% 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.  Fees related to
the  servicing of SBA loans as described  increased  $1,000 over the same period
for last year.

<PAGE>


     Other income increased $59,000 or 86% compared to 2001,  primarily a result
of  increased  mortgage  processing  fees  and  mortgage  servicing  fees  which
increased  $17,000 and $21,000,  respectively.  Commissions on letters of credit
also increased $10,000 or 75% from 2001.

Other Expense

     Other expenses for the three months ended March 31, 2002 increased $286,000
or 13% from the same period in 2001.  Total  assets have grown $94.5  million or
36% since March 31, 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 since March 31, 2001. These additions  coupled with normal
salary increases caused salary and benefits expense to increase  $217,000 or 20%
from the same  period last year.  Rent on our  recently  relocated  Hillsborough
branch  and  increases  in  depreciation  expense  resulted  in a $39,000 or 11%
increase in occupancy costs.  Rent on the former  Hillsborough  location will be
expensed  through its lease  period  ending  December  2003.  Equipment  expense
increased $13,000 or 11% from 2001, due to increased  computer  depreciation and
equipment rental expense.  Other expense  increased  $17,000 or 3% from the same
period  last  year as a  result  of  increased  computer  supplies  expense  and
miscellaneous   outside   service   expense,   which   increased  91%  and  30%,
respectively.

Financial Condition
March 31, 2002 compared to December 31, 2001

     Total assets were $356.9 million at March 31, 2002 increasing $28.5 million
or 9% from December 31, 2001. Total loans increased $6.7 million.  Loans secured
by real estate and loans to  individuals  grew by $8.9 million and $2.3 million,
respectively.  Commercial  and  industrial  loans and loans to  individuals  for
automobiles decreased $3.1 million and $786,000,  respectively. Other loans also
showed a decrease of $537,000.

     Deposits  increased  $26.1  million or 9% during the first three  months of
2002. All categories of deposits  improved  during the period with the exception
of NOW accounts and  certificates  of deposits  greater than  $100,000.  Savings
deposits, non-interest bearing demand deposits and money market accounts grew by
$9.8 million, $8.0 million and $7.4 million, respectively. While the Company has
remained  competitive  in the pricing of its deposits,  market rates have caused
certificates  of deposit rates to become  similar to the savings rates causing a
shift in customers to savings accounts and other core deposits.

     Investment  securities  grew $18.1  million  since  December  31, 2001 as a
result of deposit growth out pacing loan growth.

Asset Quality

     There  were  loans  totaling  $38,000  past due 90 days or more  and  still
accruing as of March 31, 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  $461,000  at March  31,  2002 and
$510,000 at December  31, 2001 and  represented  .21% of total loans as of March
31, 2002 and .24% as of December 31, 2001. The balance of existing  restructured
loans was $294,000 as of March 31, 2002 and $301,000 as of December 31, 2001.

     Loans  considered  to be impaired  totaled  $409,000 at March 31,  2002,  a
valuation reserve of $24,000 is attributed to these loans.

     The Company had no other real estate owned at March 31, 2002.



<PAGE>


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  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 March 31,  2002,  the  allowance  for loan  losses  was  $2,054,000  and
represented .95% of total loans and 272.05% of non-performing  loans compared to
an  allowance  for loan losses at December  31, 2001 of  $2,111,000  or 1.01% of
total loans and 260.30% of non-performing loans at December 31, 2001.

     Net  charge-offs  for the  first  three  months  of 2002  totaled  $157,000
compared  to $77,000 for the year ended  December  31,  2001.  Most of the first
quarter charge-offs for 2002 were concentrated in one loan.


<PAGE>


Capital Resources

     Total Shareholders'  Equity was $20.3 million at March 31, 2002 compared to
$19.6 million at December 31, 2001.  Subordinated debentures in the amount of $4
million are also included in the  calculation of regulatory  capital ratios with
certain limitations.

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

                                                    March 31,       December 31,
                                                      2002              2001
                                                    ---------       ------------
        Total Capital to Risk Weighted Assets        10.15%           10.39%
        Tier I Capital to Risk Weighted Assets        9.32%            9.50%
        Leverage Ratio                                6.56%            7.86%

     The reduction of the capital ratios was a result of the  significant  asset
growth  the  Company  experienced  in the  first  quarter  of 2002.  This  could
necessitate the obtaining of additional capital in 2002.

Liquidity

     Cash and Cash  Equivalents  totaled  $32.9  million at March 31,  2002,  an
increase of $1.2 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 $28.0  million.  Savings  deposits  and  money  market
deposits  experienced  the largest  increases for the three month period of $9.8
million and $7.4 million, respectively.  These increases in deposits were almost
offset by net cash used for investing activities of $27.6 million. Investment in
securities and loans accounted for $24.3 million and $6.8 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  quarter.  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 3.63% in the first quarter of 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
          Proxies were mailed to  shareholders  of the Company on March 28, 2002
          for the Annual Meeting of  Shareholders on April 25, 2002. The purpose
          was the election of five of the thirteen Directors for a term of three
          years.

          Following are the results of the voting:

               The following candidates were nominated for a term to continue to
               the 2005 Annual Meeting.

                                          Votes For             Votes Withheld
                                          ---------             --------------
               Willem Kooyker             2,783,162                    420
               Frank Orlando              2,782,007                  1,575
               Gilbert E. Pittenger       2,782,007                  1,575
               Frederick D. Quick         2,783,162                    420
               Donald Sciaretta           2,783,162                    420

ITEM 5 -  Other Information

          The  common  stock of the  Company  is traded on the  Nasdaq  National
          Market,  under the trading symbol SVBF. On March 31, 2002, the closing
          bid of the Company's common stock was $13.00 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 has been one Form 8-K filed during the three months of 2002.

                   January 22, 2002 - Fourth Quarter Earnings



<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:   May 1, 2002                            By: /s/ Keith B. McCarthy
                                                    --------------------------
                                                      Keith B. McCarthy
                                                      Executive Vice President
                                                      Chief Accounting Officer