  We prove a relation between a generating series for the heights of Heegner
cycles on the arithmetic surface associated to a Shimura curve and the second
term in the Laurent expansion at s=1/2 of an Eisenstein series of weight 3/2
for SL(2). On the geometric side, a typical coefficient of the generating
series involves the Faltings heights of abelian surfaces isogenous to a product
of CM elliptic curves, an archimedean contribution, and contributions from
vertical components in the fibers of bad reduction. On the analytic side, these
terms arise via the derivatives of local Whittaker functions. It should be
noted that s=1/2 is not the central point for the functional equation of the
Eisenstein series in question. Moreover, the first term of the Laurent
expansion at s=1/2 coincides with the generating function for the degrees of
the Heegner cycles on the generic fiber, and, in particular, does not vanish.
