EXHIBIT 99.1
Press Release dated April 16, 2002
For Information Contact | ||
At Greater Bay Bancorp: | At FRB Weber Shandwick: | |
David L. Kalkbrenner | Christina Carrabino (general information) | |
President and CEO | Stephanie Mishra (analyst contact) | |
(650) 614-5767 | (415) 986-1591 | |
Steven C. Smith | ||
EVP, CAO andCFO | ||
(650) 813-8222 |
FOR IMMEDIATE RELEASE
GREATER BAY BANCORP REPORTS 13% INCREASE
IN FIRST QUARTER 2002 NET INCOME
PALO ALTO, CA, April 16, 2002—Greater Bay Bancorp (Nasdaq: GBBK), an $8.3 billion in assets financial services holding company, today announced results for the first quarter ended March 31, 2002. Greater Bay Bancorp’sNET INCOME for the first quarter of 2002 increased to $27.6 million, or $0.52 per diluted share, compared to $24.5 million, or $0.48 per diluted share, in the first quarter of 2001. The Company’sCASH NET INCOME,excluding amortization of intangibles, was $0.53 per diluted share in the first quarter of 2002, compared to $0.48 per diluted share in the first quarter of 2001.
Based onNET INCOME, for the first quarter of 2002, Greater Bay Bancorp’s return on average equity was 20.38%, return on average assets was 1.39% and efficiency ratio was 43.14%. For the first quarter of 2001, net income resulted in a return on average equity of 24.51%, return on average assets of 1.73% and an efficiency ratio of 43.33%.
Based onCASH NET INCOME, for the first quarter of 2002, Greater Bay Bancorp’s return on average equity was 20.63%, return on average assets was 1.41% and efficiency ratio was 42.66%. For the first quarter of 2001, cash net income resulted in a return on average equity of 24.68%, return on average assets of 1.74% and an efficiency ratio of 42.99%.
Greater Bay Bancorp’s non-interest income rose to 19.62% of total revenue for the first quarter of 2002, compared to 13.24% for the first quarter of 2001. The increase in non-interest income is primarily attributed to the Company’s merger with ABD Insurance and Financial Services, Inc. (“ABD”), the 16th largest insurance agency in the U.S. This merger, which closed in early March 2002, resulted in an increase in non-interest income of $10.9 million for that one-month period. Excluding the one-month of revenue generated from ABD, non-interest income to total revenue would have been 11.24%. Total revenue growth for the first quarter of 2002 from the first quarter of 2001 was 33% including ABD, and 20% excluding ABD, while net interest income grew at a 23% pace for the same period.
At March 31, 2002, Greater Bay Bancorp’s total assets were $8.3 billion, an increase of 38% or $2.3 billion from March 31, 2001. Total loans grew 7% to $4.5 billion, an increase of $297
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million from March 31, 2001, while total deposits increased to $5.0 billion, an increase of 5% or $228 million from March 31, 2001.
Greater Bay Bancorp’s allowance for loan losses was 2.78% of total loans at March 31, 2002 and 2.77% at December 31, 2001, while its ratio of non-performing assets to total assets was 0.35% at March 31, 2002, compared to 0.39% at December 31, 2001. The allowance for loan losses was 435.04% of total non-performing assets at March 31, 2002, compared to 402.79% at December 31, 2001.
The capital ratios of Greater Bay Bancorp and each of its subsidiary banks continue to be above the well-capitalized guidelines established by the bank regulatory agencies.
“Greater Bay Bancorp’s strong first quarter operating results confirm that we have been able to effectively deliver quality returns to our shareholders during a period of significant economic uncertainty. While we are optimistic that the economy is beginning to recover from the slowdown, we continue to be vigilant in managing our credit risk and controlling our operating expenses, while focusing on continuing to build our relationship banking business. Our 13% increase in net income for the first quarter, along with our strong loan loss reserves and credit quality, allowed Greater Bay Bancorp to report GAAP EPS of $0.52 (cash EPS of $0.53) per diluted share, return on average equity in the quarter of 20.38% and return on average assets in the quarter of 1.39%,” stated David Kalkbrenner, President and CEO of Greater Bay Bancorp.”
Mr. Kalkbrenner continued, “Greater Bay Bancorp continues to manage its credit risk by maintaining a strong loan loss reserve position and aggressively managing its non-performing assets. During the quarter, we continued to proactively review all areas of our credit portfolio, and our real estate portfolio continues to perform very well. We continued our proactive analysis of the non-relationship syndicated national credit portfolio (“SNC portfolio”), which is now down to less than $77 million as of March 31, 2002 or 0.9% of total assets. This review resulted in net charge-offs for the first quarter of $15.4 million, of which approximately $11.1 million were from the SNC portfolio. While the net charge-offs were higher than we would have liked, we are pleased to report that none of the remaining $4.3 million in net charge-offs were from the core banks real estate loan portfolios. Once again, we were able to record a provision for loan losses in excess of our net charge-offs, a key differentiating factor in determining quality of earnings amongst financial services companies. As we have previously stated, the Company has not funded a non-relationship SNC loan in over 27 months and we do not intend to re-enter that market in the foreseeable future.”
“We continue to be comfortable with our interest rate risk strategy as Greater Bay’s net interest margin expanded during the first quarter of 2002 to 4.98% from 4.83% in the fourth quarter of 2001. We had positioned the Company to mitigate margin contraction during a down rate market environment, while looking to gain margin expansion during a flat or rising market rate outlook. With the continued positive economic signals emanating from the Federal Reserve Board, we now believe interest rates will rise later in 2002, which will continue to provide positive momentum for our net interest margin,” said Mr. Kalkbrenner.
Mr. Kalkbrenner further noted, “We completed our acquisition of ABD on March 12, 2002. We have already begun to realize the synergies of this acquisition, as ABD brings to Greater Bay
2
Bancorp an excellent opportunity to offer our business clients the benefits available from ABD. For the first quarter of this year, ABD contributed other income that increased Greater Bay’s non-interest income to total revenue from approximately 11% to almost 20%. On a prospective basis, we estimate this percentage will increase to in excess of 30%, with a long-term goal of reaching 40%.”
“The strides our Company has taken to ensure quality shareholder returns while also improving the strength of the franchise were evidenced during the first quarter by two milestone events. Both Moody’s Investor Services and Standard & Poor’s assigned investment grade ratings to Greater Bay Bancorp and its two largest subsidiary banks, Cupertino National Bank and Mid-Peninsula Bank. These ratings recognized Greater Bay’s solid financial fundamentals, and position the Company to be able to take advantage of lower debt and equity financing costs in the future,” added Mr. Kalkbrenner.
Forward-Looking Information
Concerning the remainder of 2002, Mr. Kalkbrenner commented, “We believe the economy is stabilizing in the San Francisco Bay Area and we are looking forward to a stronger business environment, especially in the second half of 2002. Greater Bay continues to deliver strong operating results, even during a period of slow economic growth. We remain confident in our ability to prosper and, with our strong relationship banking focus, experienced bankers and Regional Community Banking strategy, we are confident of our ability to be in the top 25% of our industry peer group in 2002.” For a detailed review of Greater Bay Bancorp’s 2002 performance goals, please review the Form 8-K, which was filed on April 4, 2002 with the SEC. For 2002, Greater Bay Bancorp’s guidance is as follows:
• | Earnings per share growth in the mid to high teens |
• | Revenue growth in the range of 11% to 17% |
• | Net interest margin in the range of 4.90% to 5.00% |
• | Return on average equity in excess of 20% |
• | Return on average assets in excess of 1.4% |
• | Loan growth in the range of approximately 7% to 10% |
• | Deposit growth in the range of approximately 5% to 10% |
• | Non-performing assets of less than 0.50% of total assets, which we believe will be at the low end of peer industry averages |
• | Net charge-offs in the range of 70 to 80 basis points of average loans including the SNC portfolio |
• | Net charge-offs in the range of 35 to 40 basis points of average loans excluding the SNC portfolio |
Greater Bay Bancorp through its eleven subsidiary banks, Bank of Petaluma, Bank of Santa Clara, Bay Area Bank, Bay Bank of Commerce, Coast Commercial Bank, Cupertino National Bank, Golden Gate Bank, Mid-Peninsula Bank, Mt. Diablo National Bank, Peninsula Bank of Commerce and San Jose National Bank, along with its operating divisions, serves clients throughout Silicon Valley, San Francisco, the San Francisco Peninsula, the East Bay Region, the North Bay Region and the Central Coastal Region. ABD Insurance and Financial Services, a
3
wholly owned subsidiary of Greater Bay Bancorp, provides commercial insurance brokerage, employee benefits consulting and risk management solutions to business clients throughout the United States.
Investors have the opportunity to listen to the conference call live over the Internet at http:/www.companyboardroom.com. Investors should go to the CompanyBoardroom Web site 15 minutes prior to the start of the call, as it may be necessary to download audio software to hear the conference call. To do so, investors should click on the Windows Media Player icon at the bottom of the page and follow directions from there. A replay of the conference call will be available on the CompanyBoardroomWeb site for 30 days and via telephone through April 23, 2002 by dialing 703-925-2435, passcode 5910484.
Safe Harbor
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to the Company’s current expectations regarding future operating results, net loan charge-offs, asset quality, level of loan loss reserves, growth in loans, deposits and assets, continued success of its Regional Community Banking strategy and the strength of the local economy. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions at the international, national and local levels and increased competition among financial service providers on the Company’s results of operations, the Company’s ability to continue its internal growth at historical rates, the Company’s ability to maintain its net interest spread, and the quality of the Company’s earning assets; (2) any difficulties that may be encountered in integrating newly acquired businesses and in realizing operating efficiencies; (3) government regulation; (4) the risks relating to the Company’s warrant positions; and (5) the other risks set forth in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2001.
For additional information and press releases about Greater Bay Bancorp, visit the Company’s web site at http://www.gbbk.com.
-Financial Tables Follow-
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GREATER BAY BANCORP
MARCH 31, 2002—FINANCIAL SUMMARY
($ in 000’s, except share and per share data)
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA: | |||||||||||||||||||||
Mar 31 2002 | Dec 31 2001 | Sept 30 2001 | Jun 30 2001 | Mar 31 2001 | |||||||||||||||||
Cash and Due From Banks | $ | 206,487 | $ | 189,404 | $ | 236,989 | $ | 228,606 | $ | 229,167 | |||||||||||
Investments | 3,215,112 | 2,996,630 | 2,662,420 | 2,161,190 | 1,423,704 | ||||||||||||||||
Loans: | |||||||||||||||||||||
Commercial | 1,901,577 | 1,909,056 | 1,888,710 | 1,865,769 | 1,845,605 | ||||||||||||||||
Term Real Estate—Commercial | 1,466,686 | 1,407,300 | 1,332,095 | 1,192,601 | 1,134,389 | ||||||||||||||||
Total Commercial | 3,368,263 | 3,316,356 | 3,220,805 | 3,058,370 | 2,979,994 | ||||||||||||||||
Construction | 697,899 | 744,127 | 731,619 | 781,018 | 757,974 | ||||||||||||||||
Real Estate—Other | 251,021 | 246,117 | 237,143 | 246,908 | 244,846 | ||||||||||||||||
Consumer and Other | 196,111 | 204,483 | 205,334 | 224,093 | 232,710 | ||||||||||||||||
Deferred Loan Fees, Net | (14,917 | ) | (15,362 | ) | (15,117 | ) | (14,788 | ) | (14,443 | ) | |||||||||||
Total Loans | 4,498,377 | 4,495,721 | 4,379,784 | 4,295,601 | 4,201,081 | ||||||||||||||||
Allowance for Loan Losses | (125,331 | ) | (124,744 | ) | (98,178 | ) | (96,119 | ) | (93,688 | ) | |||||||||||
Total Loans, Net | 4,373,046 | 4,370,977 | 4,281,606 | 4,199,482 | 4,107,393 | ||||||||||||||||
Goodwill and Other Intangibles | 171,722 | 25,080 | 23,851 | 24,226 | 24,588 | ||||||||||||||||
Other Assets | 363,658 | 294,963 | 300,093 | 271,994 | 269,543 | ||||||||||||||||
Total Assets | $ | 8,330,025 | $ | 7,877,054 | $ | 7,504,959 | $ | 6,885,498 | $ | 6,054,395 | |||||||||||
Deposits: | |||||||||||||||||||||
Demand, Non-Interest Bearing | $ | 934,150 | $ | 953,989 | $ | 956,085 | $ | 959,065 | $ | 1,012,560 | |||||||||||
NOW, MMDA and Savings | 2,271,837 | 2,280,119 | 2,265,671 | 2,295,315 | 2,349,651 | ||||||||||||||||
Time Certificates, $100,000 and over | 590,965 | 642,073 | 733,077 | 684,612 | 724,170 | ||||||||||||||||
Other Time Certificates | 1,244,260 | 1,113,890 | 918,482 | 940,581 | 726,583 | ||||||||||||||||
Total Deposits | 5,041,212 | 4,990,071 | 4,873,315 | 4,879,573 | 4,812,964 | ||||||||||||||||
Other Borrowings | 2,313,428 | 2,095,896 | 1,790,383 | 1,365,465 | 604,931 | ||||||||||||||||
Other Liabilities | 176,688 | 94,403 | 142,748 | 98,792 | 114,476 | ||||||||||||||||
Total Liabilities | 7,531,328 | 7,180,370 | 6,806,446 | 6,343,830 | 5,532,371 | ||||||||||||||||
Trust Preferred Securities | 218,000 | 218,000 | 218,000 | 99,500 | 99,500 | ||||||||||||||||
REIT Preferred Securities | 15,650 | 15,000 | — | — | — | ||||||||||||||||
Convertible Preferred Stock | 72,500 | — | — | — | — | ||||||||||||||||
Stockholders’ Equity | 492,547 | 463,684 | 480,513 | 442,168 | 422,524 | ||||||||||||||||
565,047 | 463,684 | 480,513 | 442,168 | 422,524 | |||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 8,330,025 | $ | 7,877,054 | $ | 7,504,959 | $ | 6,885,498 | $ | 6,054,395 | |||||||||||
Average Quarterly Total Loans, excluding Nonaccrual | $ | 4,439,279 | $ | 4,420,039 | $ | 4,318,278 | $ | 4,231,007 | $ | 4,101,904 | |||||||||||
Average Quarterly Investments | $ | 3,098,595 | $ | 2,794,646 | $ | 2,434,315 | $ | 1,787,608 | $ | 1,194,120 | |||||||||||
Average Quarterly Interest Earning Assets | $ | 7,537,874 | $ | 7,214,685 | $ | 6,752,593 | $ | 6,018,615 | $ | 5,296,024 | |||||||||||
Average Quarterly Deposits | $ | 5,055,141 | $ | 4,869,237 | $ | 4,895,336 | $ | 4,808,515 | $ | 4,680,972 | |||||||||||
Average Quarterly Interest Bearing Liabilities | $ | 6,220,579 | $ | 5,837,617 | $ | 5,474,686 | $ | 4,821,892 | $ | 4,105,171 | |||||||||||
Average Quarterly Assets | $ | 8,028,660 | $ | 7,613,853 | $ | 7,154,318 | $ | 6,436,244 | $ | 5,749,274 | |||||||||||
Average Quarterly Equity | $ | 549,300 | $ | 469,459 | $ | 461,930 | $ | 435,244 | $ | 405,937 | |||||||||||
Total Regulatory Capital | |||||||||||||||||||||
Tier I or Leverage Capital | $ | 602,839 | $ | 607,820 | $ | 562,151 | $ | 512,260 | $ | 494,346 | |||||||||||
Total Capital | $ | 701,039 | $ | 740,653 | $ | 721,596 | $ | 580,779 | $ | 561,325 | |||||||||||
Nonperforming Assets | |||||||||||||||||||||
Nonaccrual Loans | $ | 27,837 | $ | 30,970 | $ | 22,273 | $ | 8,186 | $ | 19,292 | |||||||||||
OREO | 972 | — | — | — | 259 | ||||||||||||||||
Total Nonperforming Assets | $ | 28,809 | $ | 30,970 | $ | 22,273 | $ | 8,186 | $ | 19,551 | |||||||||||
Greater Bay Trust Company Assets | $ | 644,216 | $ | 629,696 | $ | 672,077 | $ | 683,306 | $ | 734,910 |
Note: Prior periods have been restated to reflect the merger between Greater Bay Bancorp and San Jose National Bank on a pooling-of-interest basis.
5
GREATER BAY BANCORP
MARCH 31, 2002—FINANCIAL SUMMARY
($ in 000’s, except share and per share data)
SELECTED YEAR TO DATE CONSOLIDATED OPERATING DATA: | |||||||||||||||||||||
First Quarter 2002 | Fourth Quarter 2001 | Third Quarter 2001 | Second Quarter 2001 | First Quarter 2001 | |||||||||||||||||
Interest Income | $ | 129,425 | $ | 129,946 | $ | 131,856 | $ | 124,669 | $ | 120,770 | |||||||||||
Interest Expense | 36,891 | 42,054 | 50,879 | 47,628 | 45,671 | ||||||||||||||||
Net Interest Income Before Provision for Loan Losses | 92,534 | 87,892 | 80,977 | 77,041 | 75,099 | ||||||||||||||||
Provision for Loan Losses | 16,000 | 28,950 | 8,400 | 10,049 | 7,328 | ||||||||||||||||
Net Interest Income After Provision for Loan Losses | 76,534 | 58,942 | 72,577 | 66,992 | 67,771 | ||||||||||||||||
Non-interest Income: | |||||||||||||||||||||
Insurance Agency Commissions & Fees (1) | 10,891 | — | — | — | — | ||||||||||||||||
Depositor Service Fees | 2,828 | 3,223 | 2,564 | 2,481 | 2,334 | ||||||||||||||||
Loan and International Banking Fees | 2,527 | 2,243 | 1,987 | 2,085 | 2,541 | ||||||||||||||||
Trust Fees | 906 | 881 | 865 | 978 | 886 | ||||||||||||||||
ATM Fees | 583 | 656 | 803 | 766 | 662 | ||||||||||||||||
Gain on Sale of Loans | 496 | 347 | 1,684 | 375 | 835 | ||||||||||||||||
Gain/(loss) on Investments | 200 | (46 | ) | 819 | 3,944 | 1,587 | |||||||||||||||
Other Income | 4,161 | 2,380 | 1,900 | 1,870 | 2,611 | ||||||||||||||||
22,592 | 9,684 | 10,622 | 12,499 | 11,456 | |||||||||||||||||
Nonrecurring—Warrant Income (2) | — | — | 77 | 504 | — | ||||||||||||||||
Total Non-interest Income | 22,592 | 9,684 | 10,699 | 13,003 | 11,456 | ||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Salaries | 26,046 | 23,675 | 21,366 | 20,824 | 18,693 | ||||||||||||||||
Deferred Loan Origination Costs | (2,986 | ) | (3,117 | ) | (3,067 | ) | (3,480 | ) | (1,750 | ) | |||||||||||
Benefits | 5,515 | 4,138 | 4,019 | 4,295 | 4,103 | ||||||||||||||||
Total Compensation and Benefits | 28,575 | 24,696 | 22,318 | 21,639 | 21,046 | ||||||||||||||||
Occupancy and Equipment | 8,838 | 7,817 | 7,036 | 6,642 | 6,261 | ||||||||||||||||
Professional Services & Legal | 1,689 | 2,342 | 2,418 | 1,626 | 1,453 | ||||||||||||||||
Telephone, postage and supplies | 1,633 | 1,615 | 1,366 | 1,541 | 1,505 | ||||||||||||||||
Marketing and promotion | 1,452 | 1,470 | 1,413 | 1,404 | 1,361 | ||||||||||||||||
Data Processing | 1,129 | 1,021 | 1,166 | 1,130 | 1,131 | ||||||||||||||||
Client Services | 647 | 645 | 712 | 805 | 803 | ||||||||||||||||
FDIC Insurance and Assessments | 463 | 627 | 406 | 393 | 336 | ||||||||||||||||
Amortization of Intangibles | 562 | 376 | 374 | 366 | 292 | ||||||||||||||||
Other Expenses | 4,682 | 3,331 | 4,000 | 3,669 | 3,315 | ||||||||||||||||
49,670 | 43,940 | 41,209 | 39,215 | 37,503 | |||||||||||||||||
Trust Preferred Securities (TPS) & REIT Preferred Securities expense | 5,323 | 5,088 | 3,724 | 2,454 | 2,458 | ||||||||||||||||
Nonrecurring Expenses (2) | — | — | — | — | — | ||||||||||||||||
Total Operating Expenses (1) (3) | 54,993 | 49,028 | 44,933 | 41,669 | 39,961 | ||||||||||||||||
Income Before Income Taxes, Merger and Other Related Nonrecurring Costs | 44,133 | 19,598 | 38,343 | 38,326 | 39,266 | ||||||||||||||||
Income Taxes: | |||||||||||||||||||||
Income Tax Expense | 16,531 | 6,369 | 14,485 | 14,171 | 14,734 | ||||||||||||||||
Capital Loss Carryback Tax (Benefit) (4) | — | (11,897 | ) | — | — | — | |||||||||||||||
Nonrecurring Income Tax Expense (2) | — | — | 32 | 212 | — | ||||||||||||||||
Total Income Tax Expense | 16,531 | (5,528 | ) | 14,517 | 14,383 | 14,734 | |||||||||||||||
Income Before Merger and Other Related Nonrecurring Costs | 27,602 | 25,126 | 23,826 | 23,943 | 24,532 | ||||||||||||||||
Merger and Other Related Nonrecurring Costs, net of tax (2) | — | 17,611 | — | — | — | ||||||||||||||||
Net Income | $ | 27,602 | $ | 7,515 | $ | 23,826 | $ | 23,943 | $ | 24,532 | |||||||||||
GAAP EPS (including Amortization of Intangibles) | |||||||||||||||||||||
Income Per Share (Before Nonrecurring and Merger Items) (2) (5) (6) | |||||||||||||||||||||
Basic (7) | $ | 0.54 | $ | 0.51 | $ | 0.48 | $ | 0.48 | $ | 0.50 | |||||||||||
Diluted | $ | 0.52 | $ | 0.49 | $ | 0.46 | $ | 0.46 | $ | 0.48 | |||||||||||
Income Per Share (Before Merger Items) (6) | |||||||||||||||||||||
Basic (7) | $ | 0.54 | $ | 0.51 | $ | 0.48 | $ | 0.48 | $ | 0.50 | |||||||||||
Diluted | $ | 0.52 | $ | 0.49 | $ | 0.46 | $ | 0.47 | $ | 0.48 | |||||||||||
Net Income Per Share | |||||||||||||||||||||
Basic (7) | $ | 0.54 | $ | 0.15 | $ | 0.48 | $ | 0.48 | $ | 0.50 | |||||||||||
Diluted | $ | 0.52 | $ | 0.15 | $ | 0.46 | $ | 0.47 | $ | 0.48 | |||||||||||
Cash EPS (excluding Amortization of Intangibles) | |||||||||||||||||||||
Income Per Share (Before Nonrecurring and Merger Items) (2) (5) (6) | |||||||||||||||||||||
Basic (7) | $ | 0.55 | $ | 0.51 | $ | 0.48 | $ | 0.48 | $ | 0.50 | |||||||||||
Diluted | $ | 0.53 | $ | 0.49 | $ | 0.47 | $ | 0.47 | $ | 0.48 | |||||||||||
Income Per Share (Before Merger Items) (6) | |||||||||||||||||||||
Basic (7) | $ | 0.55 | $ | 0.51 | $ | 0.48 | $ | 0.49 | $ | 0.50 | |||||||||||
Diluted | $ | 0.53 | $ | 0.49 | $ | 0.47 | $ | 0.47 | $ | 0.48 | |||||||||||
Net Income Per Share | |||||||||||||||||||||
Basic (7) | $ | 0.55 | $ | 0.16 | $ | 0.48 | $ | 0.49 | $ | 0.50 | |||||||||||
Diluted | $ | 0.53 | $ | 0.15 | $ | 0.47 | $ | 0.47 | $ | 0.48 | |||||||||||
Weighted Average Common Shares Outstanding | 50,204,000 | 49,689,000 | 49,588,000 | 49,487,000 | 49,192,000 | ||||||||||||||||
Weighted Average Common & Common Equivalent Shares Outstanding | 53,026,000 | 51,221,000 | 51,352,000 | 50,976,000 | 51,413,000 |
(1) | The Company acquired ABD Insurance and Financial Services (ABD) on March 12, 2002 which is accounted for under the purchase accounting method. |
(2) | Components of Nonrecurring and Merger Items. Net Income excluding these items is $25,126 for Q4 2001; $23,781 for Q3 2001 and $23,651 for Q2 2001. |
(3) | Total Operating Expenses were $47.5 million in Q1 2002, excluding operating expenses of ABD. |
(4) | The Capital Loss Carryback was recognized in conjunction with the establishment of a REIT which also generated $15 million in additional capital in Q4 2001. |
(5) | For Q4 2001 includes a Capital Loss Carryback Tax Benefit of $11.9 million and a Q4 2001 additional provision for loan losses of approximately $21 million over the recurring Q3 2001 provision and excludes Nonrecurring and Merger Items of $17.6 million, net of tax. Excludes Nonrecurring and Merger Items of $45 thousand, net of tax, in Q3 2001 and $292 thousand, net of tax, in Q2 2001. |
(6) | In addition to the principal performance measures in accordance with generally accepted accounting principles, we are providing these supplemental pro forma performance measures to highlight the result of our core operations. We believe these calculations, which are derived from data presented on the face of our consolidated financial statements, are useful for investors to provide comparability from period to period with regard to our core operations. These calculations are not intended to be a substitute for the principal performance measures in accordance with generally accepted accounting principles. |
(7) | Net income available to common stockholders is based on total net income less preferred dividends of $263 thousand in Q1 2002. |
Note: | Prior periods have been restated to reflect the merger between Greater Bay Bancorp and San Jose National Bank on a pooling-of-interest basis. |
6
GREATER BAY BANCORP W/O ABD
MARCH 31, 2002—FINANCIAL SUMMARY
($ in 000’s, except share and per share data)
SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION RATIOS:
Mar 31 2002 | Dec 31 2001 | Sept 30 2001 | Jun 30 2001 | Mar 31 2001 | ||||||||||||||||
Loan to Deposit Ratio | 89.23 | % | 90.09 | % | 89.87 | % | 88.03 | % | 87.29 | % | ||||||||||
Core Bank Loan to Deposit Ratio (1) | 72.26 | % | 75.41 | % | 75.60 | % | 73.94 | % | 74.15 | % | ||||||||||
Ratio of Allowance for Loan Losses to: | ||||||||||||||||||||
Average Loans | 2.81 | % | 2.80 | % | 2.26 | % | 2.27 | % | 2.27 | % | ||||||||||
End of Period Loans | 2.78 | % | 2.77 | % | 2.23 | % | 2.23 | % | 2.22 | % | ||||||||||
Total Nonperforming Assets | 435.04 | % | 402.79 | % | 440.79 | % | 1174.19 | % | 479.20 | % | ||||||||||
Ratio of Provision for Loan Losses to Average Loans, annualized: | 1.45 | % | 2.58 | % | 0.77 | % | 0.95 | % | 0.72 | % | ||||||||||
Total Nonperforming Assets to Total Assets | 0.35 | % | 0.39 | % | 0.30 | % | 0.12 | % | 0.32 | % | ||||||||||
Ratio of Quarterly Net Charge-offs to Average Loans, annualized | 1.40 | % | 0.52 | % | 0.58 | % | 0.72 | % | 0.53 | % | ||||||||||
Ratio of YTD Net Charge-offs to YTD Average Loans, annualized | 1.40 | % | 0.59 | % | 0.61 | % | 0.63 | % | 0.53 | % | ||||||||||
Loan Growth, current quarter to prior year quarter | 7.08 | % | 10.60 | % | 24.28 | % | 31.85 | % | 37.29 | % | ||||||||||
Loan Growth, current quarter to prior quarter, annualized | 0.24 | % | 10.50 | % | 7.78 | % | 9.02 | % | 13.60 | % | ||||||||||
Loan Growth, YTD annualized | 0.24 | % | 10.60 | % | 10.36 | % | 11.45 | % | 13.60 | % | ||||||||||
Recurring Revenue Growth, current quarter to prior year quarter | 33.01 | % | 17.96 | % | 18.97 | % | 22.77 | % | 29.01 | % | ||||||||||
Recurring Revenue Growth, current quarter to prior quarter, annualized | 72.94 | % | 25.89 | % | 9.12 | % | 13.83 | % | 18.82 | % | ||||||||||
Net Interest Income Growth, current quarter to prior year quarter | 23.22 | % | 18.47 | % | 18.50 | % | 18.33 | % | 29.57 | % | ||||||||||
Net Interest Income Growth, current quarter to prior quarter, annualized | 21.42 | % | 33.88 | % | 20.27 | % | 10.37 | % | 4.96 | % | ||||||||||
Average Earning Assets to Average Total Assets | 93.89 | % | 94.76 | % | 94.38 | % | 93.51 | % | 92.12 | % | ||||||||||
Average Earning Assets to Average Interest-Bearing Liabilities | 121.18 | % | 123.59 | % | 123.34 | % | 124.82 | % | 129.01 | % | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Leverage | 7.67 | % | 8.01 | % | 7.86 | % | 7.96 | % | 8.60 | % | ||||||||||
Tier 1 Risk Based Capital | 10.31 | % | 10.49 | % | 10.05 | % | 9.47 | % | 9.40 | % | ||||||||||
Total Risk Based Capital | 11.99 | % | 12.79 | % | 12.90 | % | 10.73 | % | 10.68 | % | ||||||||||
Risk Weighted Assets | $ | 5,845,147 | $ | 5,792,917 | $ | 5,593,341 | $ | 5,411,878 | $ | 5,258,204 | ||||||||||
Book Value Per Share | $ | 9.75 | $ | 9.31 | $ | 9.66 | $ | 8.92 | $ | 8.54 | ||||||||||
Total Shares Outstanding | 50,501,861 | 49,831,682 | 49,717,960 | 49,555,808 | 49,463,962 |
SELECTED QUARTERLY CONSOLIDATED OPERATING RATIOS:
First Quarter 2002 | Fourth Quarter 2001 | Third Quarter 2001 | Second Quarter 2001 | First Quarter 2001 | |||||||||||
GAAP Ratios (including Amortization of Intangibles) | |||||||||||||||
Return on Period Average Assets, annualized (2) | 1.39 | % | 1.31 | % | 1.32 | % | 1.47 | % | 1.73 | % | |||||
Return on Period Average Equity, annualized (2) | 20.38 | % | 21.23 | % | 20.42 | % | 21.80 | % | 24.51 | % | |||||
Net Interest Margin—Average Earning Assets | 4.98 | % | 4.83 | % | 4.76 | % | 5.13 | % | 5.75 | % | |||||
Operating Expense Ratio (Before Nonrecurring and Merger Items) | 2.78 | % | 2.55 | % | 2.49 | % | 2.60 | % | 2.82 | % | |||||
Operating Expense Ratio (Before Nonrecurring and Merger Items and excluding TPS & REIT preferred securities expense) | 2.51 | % | 2.29 | % | 2.29 | % | 2.44 | % | 2.65 | % | |||||
Efficiency Ratio (Before Nonrecurring and Merger Items) | 47.77 | % | 50.25 | % | 49.05 | % | 46.54 | % | 46.17 | % | |||||
Efficiency Ratio (Before Nonrecurring and Merger Items and excluding TPS & REIT preferred securities expense) | |||||||||||||||
Efficiency Ratio (Before Nonrecurring and Merger Items and excluding TPS & REIT preferred securities expense) | 43.14 | % | 45.03 | % | 44.99 | % | 43.80 | % | 43.33 | % | |||||
Efficiency Ratio (Before Nonrecurring and Merger Items, excluding TPS & REIT preferred securities expense and excluding the operating results of ABD) | 40.53 | % | 45.03 | % | 44.99 | % | 43.80 | % | 43.33 | % | |||||
Cash Ratios (excluding Amortization of Intangibles) | |||||||||||||||
Return on Period Average Assets, annualized (2) | 1.41 | % | 1.32 | % | 1.33 | % | 1.49 | % | 1.74 | % | |||||
Return on Period Average Equity, annualized (2) | 20.63 | % | 21.42 | % | 20.62 | % | 22.00 | % | 24.68 | % | |||||
Net Interest Margin—Average Earning Assets | 4.98 | % | 4.83 | % | 4.76 | % | 5.13 | % | 5.75 | % | |||||
Operating Expense Ratio (Before Nonrecurring and Merger Items) | 2.75 | % | 2.54 | % | 2.47 | % | 2.57 | % | 2.80 | % | |||||
Operating Expense Ratio (Before Nonrecurring and Merger Items and excluding TPS & REIT preferred securities expense) | 2.48 | % | 2.27 | % | 2.26 | % | 2.42 | % | 2.62 | % | |||||
Efficiency Ratio (Before Nonrecurring and Merger Items) | 47.28 | % | 49.86 | % | 48.65 | % | 46.13 | % | 45.83 | % | |||||
Efficiency Ratio (Before Nonrecurring and Merger Items and excluding TPS & REIT preferred securities expense) | 42.66 | % | 44.65 | % | 44.58 | % | 43.39 | % | 42.99 | % | |||||
Efficiency Ratio (Before Nonrecurring and Merger Items, excluding TPS & REIT preferred securities expense and excluding the operating results of ABD) | 40.51 | % | 44.65 | % | 44.58 | % | 43.39 | % | 42.99 | % |
(1) | Includes the eleven core banking divisions and excludes ABD, Matsco, Capco, Pacific Business Funding and Corporate Finance. |
(2) | For Q4 2001 includes a Capital Loss Carryback Tax Benefit of $11.9 million and a Q4 2001 additional provision for loan losses of approximately $21 million over the recurring Q3 2001 provision and excludes Nonrecurring and Merger Items of $17.6 million, net of tax. Excludes Nonrecurring and Merger Items of $45 thousand, net of tax, in Q3 2001 and $292 thousand, net of tax, in Q2 2001. |
Note: Prior periods have been restated to reflect the merger between Greater Bay Bancorp and San Jose National Bank on a pooling-of-interest basis.
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