Silicon Valley Bancshares, Inc. Announces Final Second Quarter Results
Company news | August 12, 2003
SANTA CLARA, Calif., Aug 12, 2003 /PRNewswire-First Call via COMTEX/ -- On July 17, 2003 Silicon Valley Bancshares, Inc. (Nasdaq: SIVB), parent company of Silicon Valley Bank and Alliant Partners, announced preliminary results that excluded any impact of a Statement of Financial Accounting Standards (SFAS) No. 142 goodwill impairment test on its investment-banking subsidiary, Alliant Partners, which was in process at the time of the announcement. This impairment test, which has now been completed, resulted in a $17.0 million pre-tax charge. Net of tax, the charge was $11.0 million.After reflecting the impact of this impairment charge, the company realized a net loss of $0.02 per diluted common share for the second quarter of 2003.
"Alliant's unique value as an integral part of our business strategy remains unchanged, and its performance has met our expectations," said KenWilcox, president and CEO.
"We engaged two independent firms to perform separate valuations on Alliant Partners. One analysis resulted in no goodwill impairment, however, the second analysis indicated goodwill impairment. We chose the more conservative of the two."
Without the SFAS No. 142 analysis and resulting charge, second quarter earnings would have been as previously reported. Complete financial statements reflecting the impact of the impairment test are included as part of this release. With the exception of the SFAS No. 142 charge, the financial analysis remains as previously reported in the July 17, 2003 press release.Earnings Conference Call
On August 12, 2003, the company will host a conference call at 5:00 p.m.(EDT) to discuss this announcement. The conference call can be accessed by dialing 877-630-8512 and referencing the passcode "Silicon Valley Bank." Alive Webcast can be accessed at www.svb.com. A digitized replay of this conference call will be available beginning at approximately 7:30 p.m. (EDT), on Tuesday, August 12, 2003, through 8:00 p.m. (EDT), on Saturday, August 16, 2003, by dialing 888-566-0514. A replay of the Webcast will also be available on www.svb.com beginning Tuesday, August 12, 2003.
About Silicon Valley Bancshares, Inc.
For 20 years, Silicon Valley Bancshares Inc., a financial holding company providing diversified financial services, has sustained its mission to provide innovative solutions to help entrepreneurs succeed. The company's principal subsidiary, Silicon Valley Bank, serves emerging growth and mature companies in the technology and life sciences markets, as well as the premium wine industry. Headquartered in Santa Clara, California, the company offers its clients financial products and services including commercial, investment, merchant and private banking, as well as value-added client services using its proprietary knowledge base. Merger, acquisition and corporate partnering services are provided through the company's investment banking subsidiary, Alliant Partners. More information on the company can be found at www.svb.com.