UPDATE 1-SVB Financial to repay all TARP funds

* To repay $235 mln and unpaid dividends

* Says repayment to shrink Q4 earnings by $11.4 mln

Dec 18 (Reuters) - SVB Financial Group (SIVB.O) said it would repay the $235 million it received from the U.S. government's Troubled Asset Relief Program along with unpaid dividends. The repayment is expected to result in a non-cash charge that will reduce fourth-quarter earnings by $11.4 million, the company said in a statement.

The investment firm will use part of the $300 million it raised in an equity offering in November to repay the U.S. Treasury by the end of the year.

Under the Capital Purchase Program, SVB sold preferred shares totaling $235 million and granted the Treasury a warrant for common shares in the company.

The company expects to repurchase the outstanding warrant issued in early 2010.

To date, the company has paid more than $10 million in dividends to the U.S. Treasury under the program.

Shares of the Santa Clara, California-based company were up 3 percent at $39.21 in morning trade Friday on Nasdaq. (Reporting by Gowri Jayakumar in Bangalore; Editing by Anne Pallivathuckal)