EXHIBIT 99.1
Press Release dated October 16, 2002
For Information Contact | ||
At Greater Bay Bancorp: | At FRB|Weber Shandwick: | |
David L. Kalkbrenner | James Hoyne (analyst/investor information) | |
President andCEO | (310) 407-6546 | |
(650) 614-5767 | ||
Steven C. Smith | ||
EVP, CAO and CFO | ||
(650) 813-8222 |
FOR IMMEDIATE RELEASE
GREATER BAY BANCORP REPORTS 36% INCREASE
IN THIRD QUARTER 2002 NET INCOME
Net Income and Balance Sheet Overview
PALO ALTO, CA, October 16, 2002—Greater Bay Bancorp (Nasdaq:GBBK), an $8.3 billion in assets financial services holding company, today announced results for the third quarter and nine months ended September 30, 2002. Greater Bay Bancorp’sNET INCOME for the third quarter of 2002 increased 36% to $32.5 million, or $0.60 per diluted share, compared to $23.8 million, or $0.46 per diluted share, in the third quarter of 2001. The Company’sCASH NET INCOME,excluding amortization of intangibles, was $0.61 per diluted share in the third quarter of 2002, compared to $0.47 per diluted share in the third quarter of 2001.
Based onNET INCOME, for the third quarter of 2002, Greater Bay Bancorp’s return on average equity was 20.44%, return on average assets was 1.53% and efficiency ratio was 42.64%. For the third quarter of 2001, net income resulted in a return on average equity of 20.42%, return on average assets of 1.32% and an efficiency ratio of 44.99%.
Based onCASH NET INCOME, for the third quarter of 2002, Greater Bay Bancorp’s return on average equity was 28.79%, return on average assets was 1.60% and efficiency ratio was 41.52%. For the third quarter of 2001, cash net income resulted in a return on average equity of 21.74%, return on average assets of 1.34% and an efficiency ratio of 44.58%.
For the first nine months of 2002, Greater Bay Bancorp’sNET INCOME increased 30% to $93.6 million, or $1.73 per diluted share, compared to $72.3 million, or $1.41 per diluted share, for the first nine months of 2001. The Company’sCASH NET INCOME,excluding amortization of intangibles, was $1.78 per diluted share for the first nine months of 2002, compared to $1.43 per diluted share for the first nine months of 2001.
Based onNET INCOME, for the first nine months of 2002, Greater Bay Bancorp’s return on average equity was 21.10%, return on average assets was 1.51% and efficiency ratio was 44.70%. For the first nine months of 2001, net income resulted in a return on average equity of 22.14%, return on average assets of 1.49% and an efficiency ratio of 44.05%.
-more-
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 2 of 12
Based onCASH NET INCOME, for the first nine months of 2002, Greater Bay Bancorp’s return on average equity was 28.23%, return on average assets was 1.57% and efficiency ratio was 43.72%. For the first nine months of 2001, cash net income resulted in a return on average equity of 23.65%, return on average assets of 1.51% and an efficiency ratio of 43.67%.
At September 30, 2002, Greater Bay Bancorp’stotal assets were $8.3 billion, an increase of 11% or $813 million from September 30, 2001.Total loans grew to $4.7 billion, a 7% annualized growth rate, from $4.4 billion a year ago, whiletotal deposits increased to $5.4 billion, a 12% annualized growth rate from $4.9 billion at September 30, 2001. Deposit growth for the third quarter of 2002 of $145 million or 11% annualized was driven by a money market deposit marketing program, which focused on core deposits.
Greater Bay Bancorp’s allowance for loan losses was 2.73% of total loans at September 30, 2002 and 2.68% at June 30, 2002, while its ratio of non-performing assets to total assets was 0.58% at September 30, 2002, compared to 0.50% at June 30, 2002. The allowance for loan losses was 264.12% of total non-performing assets at September 30, 2002, compared to 294.21% at June 30, 2002.
Greater Bay Bancorp’snet interest margin for the third quarter of 2002 was 4.68% compared to 4.85% for the second quarter of 2002 and 4.98% for the first quarter of 2002. The net interest margin declined for the quarter, primarily as the result of the rapid paydowns in the investment portfolio, which were partially offset by declines in our borrowing costs. The end of period net interest margin was actually slightly higher than the average net interest margin due to the reduction in the investment portfolio and associated other borrowings.
Greater Bay Bancorp’snon-interest income rose to 37.54% of total revenue for the third quarter of 2002, compared to 11.60% for the third quarter of 2001. This was primarily attributed to the additional revenue generated from ABD Insurance and Financial Services (“ABD”) during the third quarter of 2002 and the additional income related to the gains in the investment portfolio.
“We are pleased to report that Greater Bay Bancorp had another quarter of good operating results; however, the current economic environment continues to provide substantial challenges,” said David Kalkbrenner, President and CEO of Greater Bay Bancorp.
Credit Quality Overview
Net charge-offs in the third quarter were higher than Greater Bay Bancorp’s previous expectations, but remain in line with the revised guidance provided in the Form 8K filed on September 17, 2002. Recent internal and external credit examinations have been completed without significant changes to our overall loan classifications. The increase in the net charge-offs is the result of our proactive credit risk management process, which identified loans in our real estate, shared national credit and Matsco portfolios, as discussed below:
• | Two real estate loans previously identified and discussed in the second quarter of 2002, accounted for 30% or $7.5 million of the quarterly charge-offs. The losses on these two credits, which were originated in 2000, were higher than second quarter 2002 estimates primarily because these |
-more-
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 3 of 12
borrowers had less liquidity and other assets in comparison to the borrowers in our typical client relationship. The Company performed a detailed review of all real estate borrowing relationships in excess of $2 million to determine if any other loans would have similar characteristics. Based on our current assessment of our loan portfolio and current economic conditions, the Company identified 7 loans totaling $38 million that could fall into this category (2 commercial construction and 5 real estate term loans). We estimate that the total loss exposure on these loans, if they all became nonperforming, would range from $5 million to $10 million; however, currently all of these loans are performing according to their terms.
• | Greater Bay Bancorp’s shared national credit portfolio now totals less than $50 million, with a target of approximately $30 million by year-end. The outstandings in this business have been declining since January 2000, when the Company made a decision to completely stop lending in this market segment. For the third quarter, losses approximated $4 million, with year to date losses exceeding 30% or $15 million of our total net charge-offs. |
• | Charge-offs in the Matsco division were higher than previous quarters, with approximately 25% or $5.9 million of the quarterly total. The increase in the Matsco charge-offs was the result of a more aggressive charge off policy and expanded collection process that was implemented in the third quarter. Matsco charges off credits after principal and interest payments are 120 days delinquent (180 days previously), even though in many cases there will be future recoveries. The recent collection efforts have reduced Matsco’s 30 day to 89 day delinquencies by 50% from the second quarter of 2002. |
Mr. Kalkbrenner commented, “We continue to be vigilant in our credit risk management practices and focus on identifying problems quickly. Our client relationships, particularly in the real estate industry, are with individuals and companies that provide us with substantial comfort when we evaluate the credit risk in our loan portfolio. Our underwriting standards require a substantial client relationship and include liquidity and net worth as key factors in the decision to lend. This disciplined approach has proven successful in the past and is proving to be valuable today as several of our borrowers have provided cash or additional collateral to ensure their obligation is properly secured.”
Interest Rate Risk and Investment Portfolio Overview
Greater Bay Bancorp mitigated the impact of credit losses on overall operations by proactively managing its interest rate risk position and reducing the size of its investment portfolio. Two years ago, Greater Bay Bancorp’s balance sheet had substantial interest rate risk in a falling rate environment. At that time, the Company initiated a program to leverage the balance sheet to protect the Company’s net interest income in the event rates declined. This strategy provided significant protection to net interest income during a period of rapidly declining market interest rates. While rates may decline in the near term, over the next two to three year period, an asset sensitive balance sheet will be beneficial, as rates may rise in the future. To take advantage of this opportunity, the Company began a process to de-leverage (that is, reduce the size of the investment portfolio and wholesale borrowings) the balance sheet in the third quarter. This de-leveraging strategy seeks to capture value on securities where prepayments are accelerating and to position the balance sheet to be more asset sensitive by allowing investment cash flows to repay borrowings and not be re-invested. In the short-term, it is anticipated that the loss of net interest income will be mitigated by increased core deposits
-more-
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 4 of 12
and loan growth. However, even if core growth does not completely cover the net interest income shortfall in the short term, we believe it will position the Company to take advantage of a rising rate environment with an asset sensitive balance sheet. The process that began in the third quarter will continue in the fourth quarter of 2002 and into 2003, with a final target of $2 billion for our investment securities portfolio (a reduction of $1.2 billion or 37% from its peak in early 2002).
Capital Overview
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 earnings for the second and third quarters of 2002, when combined with our de-leveraging strategy, substantially improved the tangible equity to asset ratio from 5.01% at March 31, 2002 to 6.11% at September 30, 2002.
Mr. Kalkbrenner commented, “In assessing our tangible equity ratio, we believe it is important to consider the composition of the goodwill that is deducted from common equity to arrive at tangible equity. At September 30, 2002, the majority of the goodwill is related to the ABD acquisition. Based on ABD’s outstanding performance and current peer insurance agency valuations, ABD is worth more than the recorded goodwill value. On a pro forma basis, including the ABD goodwill in tangible equity, our tangible equity ratio would be 7.72%.”
Mr. Kalkbrenner continued, “Strong earnings coupled with the de-leveraging strategy have positioned the Company to continue to actively manage credit quality, while providing opportunities to support shareholder value. Retiring 44% of our Zero Coupon Convertible Contingent Debentures was one step we took in the third quarter to add value for our shareholders. We are actively considering other options to add value for our shareholders, as well as further reductions in our investment portfolio to position the Company to take advantage of rising interest rates.”
Forward-Looking Information
Mr. Kalkbrenner stated, “Considering our high growth, good efficiency ratio and regulatory environment, we recognize the need to increase human and systems resources, particularly in the areas of compliance and enterprise-wide risk management. These additions to staff and systems will impact salary and other expenses over the next several quarters. These increases have already been incorporated into our 2002 and 2003 earnings guidance.”
Mr. Kalkbrenner commented further, “The San Francisco Bay Area continues to be impacted by the slowing economy, as the technology recovery continues to be pushed farther and farther out. While we have few technology specific clients, the slowing economy has significant impact on our clients who provide services or real estate to this market segment. While we continue to be cautiously optimistic about the future, we realize the economy is fragile. Based on current information and assuming asecond economic downturn does not occur, we are providing our guidance for the balance of 2002 and earnings per share guidance for 2003:”
-more-
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 5 of 12
2002 Guidance
• | Earnings per share growth |
—Q4 2002 in the range of $0.60 to $0.63
• | Net interest margin in the range of 4.65% to 4.85% |
• | Return on average equity in excess of 20% |
• | Return on average assets in excess of 1.40% |
• | Loan growth in the range of approximately 7% to 10% |
• | Deposit growth in the range of approximately 5% to 10% |
• | NPAs in the range of 0.50% to 0.65% of total assets |
• | Net charge-offs in the range of 110 to 120 basis points of average loans including the Shared National Credit portfolio |
2003 Guidance
• | 2003 earnings per share growth in the range of 10%—15% |
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 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 through CompanyBoardroom athttp://www.companyboardroom.com on Wednesday, October 16, 2002 at 8:00 a.m. 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. A replay of the conference call will be available on the CompanyBoardroom web site for 30 days and via telephone through October 23, 2002 by dialing (703) 925-2435 or (888) 266-2086, passcode 6234791.
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
-more-
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 6 of 12
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 athttp://www.gbbk.com.
-Financial Tables Follow-
-more-
Greater Bay Bancorp's Third Quarter 2002 Earnings Results
October 16, 2002
Page 7 of 12
GREATER BAY BANCORP
SEPTEMBER 30, 2002—FINANCIAL SUMMARY
($ in 000's, except share and per share data)
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA:
Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | ||||||||||||||||
2002 | 2002 | 2002 | 2001 | 2001 | ||||||||||||||||
Cash and Due From Banks | $ | 271,774 | $ | 265,033 | $ | 206,487 | $ | 189,404 | $ | 236,989 | ||||||||||
Investments | 2,966,302 | 3,181,788 | 3,215,112 | 2,996,630 | 2,662,420 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 2,007,389 | 1,997,960 | 1,901,577 | 1,909,056 | 1,888,710 | |||||||||||||||
Term Real Estate—Commercial | 1,529,582 | 1,500,972 | 1,466,686 | 1,407,300 | 1,332,095 | |||||||||||||||
Total Commercial | 3,536,971 | 3,498,932 | 3,368,263 | 3,316,356 | 3,220,805 | |||||||||||||||
Construction & Land | 715,351 | 728,795 | 697,899 | 744,127 | 731,619 | |||||||||||||||
Real Estate—Other | 282,894 | 292,474 | 251,021 | 246,117 | 237,143 | |||||||||||||||
Consumer and Other | 174,797 | 178,809 | 196,111 | 204,483 | 205,334 | |||||||||||||||
Deferred Loan Fees, Net | (16,102 | ) | (16,354 | ) | (14,917 | ) | (15,362 | ) | (15,117 | ) | ||||||||||
Total Loans | 4,693,911 | 4,682,656 | 4,498,377 | 4,495,721 | 4,379,784 | |||||||||||||||
Allowance for Loan Losses | (128,429 | ) | (126,092 | ) | (125,331 | ) | (124,744 | ) | (98,178 | ) | ||||||||||
Total Loans, Net | 4,565,482 | 4,556,564 | 4,373,046 | 4,370,977 | 4,281,606 | |||||||||||||||
Goodwill and Other Intangibles | 169,114 | 170,432 | 171,722 | 25,080 | 23,851 | |||||||||||||||
Other Assets | 345,327 | 352,405 | 363,658 | 294,963 | 300,093 | |||||||||||||||
Total Assets | $ | 8,317,999 | $ | 8,526,222 | $ | 8,330,025 | $ | 7,877,054 | $ | 7,504,959 | ||||||||||
Deposits: | ||||||||||||||||||||
Demand, Non-Interest Bearing | $ | 984,327 | $ | 933,486 | $ | 934,150 | $ | 953,989 | $ | 956,085 | ||||||||||
NOW, MMDA and Savings | 2,693,242 | 2,555,057 | 2,271,837 | 2,280,119 | 2,265,671 | |||||||||||||||
Time Certificates, $100,000 and over | 809,519 | 807,033 | 826,178 | 827,756 | 909,175 | |||||||||||||||
Other Time Certificates | 956,821 | 1,003,550 | 1,009,047 | 928,207 | 742,384 | |||||||||||||||
Total Deposits | 5,443,909 | 5,299,126 | 5,041,212 | 4,990,071 | 4,873,315 | |||||||||||||||
Other Borrowings | 1,840,423 | 2,209,356 | 2,313,428 | 2,095,896 | 1,790,383 | |||||||||||||||
Other Liabilities | 163,310 | 169,311 | 176,688 | 94,403 | 142,748 | |||||||||||||||
Total Liabilities | 7,447,642 | 7,677,793 | 7,531,328 | 7,180,370 | 6,806,446 | |||||||||||||||
Trust Preferred Securities | 203,000 | 223,000 | 218,000 | 218,000 | 218,000 | |||||||||||||||
REIT Preferred Securities | 15,650 | 15,650 | 15,650 | 15,000 | — | |||||||||||||||
Convertible Preferred Stock | 72,500 | 72,500 | 72,500 | — | — | |||||||||||||||
Shareholders' Equity | 579,207 | 537,279 | 492,547 | 463,684 | 480,513 | |||||||||||||||
651,707 | 609,779 | 565,047 | 463,684 | 480,513 | ||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 8,317,999 | $ | 8,526,222 | $ | 8,330,025 | $ | 7,877,054 | $ | 7,504,959 | ||||||||||
Average Quarterly Total Loans, excluding Nonaccrual | $ | 4,641,680 | $ | 4,541,191 | $ | 4,439,279 | $ | 4,420,039 | $ | 4,318,278 | ||||||||||
Average Quarterly Investments | $ | 3,183,293 | $ | 3,202,106 | $ | 3,098,595 | $ | 2,794,646 | $ | 2,434,315 | ||||||||||
Average Quarterly Interest Earning Assets | $ | 7,824,973 | $ | 7,743,297 | $ | 7,537,874 | $ | 7,214,685 | $ | 6,752,593 | ||||||||||
Average Quarterly Deposits | $ | 5,443,742 | $ | 5,194,555 | $ | 5,055,141 | $ | 4,869,237 | $ | 4,895,336 | ||||||||||
Average Quarterly Interest Bearing Liabilities | $ | 6,507,726 | $ | 6,499,184 | $ | 6,220,579 | $ | 5,837,617 | $ | 5,474,686 | ||||||||||
Average Quarterly Assets | $ | 8,474,179 | $ | 8,413,187 | $ | 8,028,660 | $ | 7,613,853 | $ | 7,154,318 | ||||||||||
Average Quarterly Equity | $ | 632,589 | $ | 598,254 | $ | 549,300 | $ | 469,459 | $ | 461,930 | ||||||||||
Total Regulatory Capital | ||||||||||||||||||||
Tier 1 or Leverage Capital | $ | 678,606 | $ | 640,207 | $ | 602,839 | $ | 607,820 | $ | 562,151 | ||||||||||
Total Capital | $ | 753,986 | $ | 736,378 | $ | 701,039 | $ | 740,653 | $ | 721,596 | ||||||||||
Nonperforming Assets | ||||||||||||||||||||
Nonaccrual Loans | $ | 47,695 | $ | 42,349 | $ | 27,837 | $ | 30,970 | $ | 22,273 | ||||||||||
OREO | 930 | 509 | 972 | — | — | |||||||||||||||
Total Nonperforming Assets | $ | 48,625 | $ | 42,858 | $ | 28,809 | $ | 30,970 | $ | 22,273 | ||||||||||
Greater Bay Trust Company Assets | $ | 598,481 | $ | 641,884 | $ | 644,216 | $ | 629,696 | $ | 672,077 |
Note: | Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and SJNB Financial Corp. on a pooling-of-interests basis. |
8
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 8 of 12
GREATER BAY BANCORP
SEPTEMBER 30, 2002—FINANCIAL SUMMARY
($ in 000’s, except share and per share data)
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
Third Quarter 2002 | Second Quarter 2002 | First Quarter 2002 | Fourth Quarter 2001 | Third Quarter 2001 | ||||||||||||||||
Interest Income | $ | 128,259 | $ | 130,792 | $ | 129,425 | $ | 129,946 | $ | 131,856 | ||||||||||
Interest Expense | 35,957 | 37,120 | 36,891 | 42,054 | 50,879 | |||||||||||||||
Net Interest Income Before Provision for Loan Losses | 92,302 | 93,672 | 92,534 | 87,892 | 80,977 | |||||||||||||||
Provision for Loan Losses | 27,776 | 9,000 | 16,000 | 28,950 | 8,400 | |||||||||||||||
Net Interest Income After Provision for Loan Losses | 64,526 | 84,672 | 76,534 | 58,942 | 72,577 | |||||||||||||||
Non-interest Income: | ||||||||||||||||||||
Insurance Agency Commissions & Fees(1) | 26,359 | 27,601 | 10,891 | — | — | |||||||||||||||
Depositor Service Fees | 2,771 | 2,762 | 2,828 | 3,223 | 2,564 | |||||||||||||||
Loan and International Banking Fees | 2,124 | 2,273 | 2,527 | 2,243 | 1,987 | |||||||||||||||
Trust Fees | 844 | 894 | 906 | 881 | 865 | |||||||||||||||
ATM Fees | 629 | 628 | 583 | 656 | 803 | |||||||||||||||
Gain on Sale of Loans | 2,049 | 210 | 496 | 347 | 1,684 | |||||||||||||||
Gain/(loss) on Investments | 9,299 | 2,707 | 200 | (46 | ) | 819 | ||||||||||||||
Gain on early retirement of Zero Coupon Convertible Contingent Securities (CODES) | 5,770 | — | — | — | — | |||||||||||||||
Other Income | 5,641 | 2,435 | 4,161 | 2,380 | 1,900 | |||||||||||||||
55,486 | 39,510 | 22,592 | 9,684 | 10,622 | ||||||||||||||||
Nonrecurring—Warrant Income(2) | (89 | ) | — | — | — | 77 | ||||||||||||||
Total Non-interest Income | 55,397 | 39,510 | 22,592 | 9,684 | 10,699 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Salaries | 37,296 | 36,054 | 26,046 | 23,675 | 21,366 | |||||||||||||||
Deferred Loan Origination Costs | (3,479 | ) | (3,745 | ) | (2,986 | ) | (3,117 | ) | (3,067 | ) | ||||||||||
Benefits | 5,950 | 6,338 | 5,515 | 4,138 | 4,019 | |||||||||||||||
Total Compensation and Benefits | 39,767 | 38,647 | 28,575 | 24,696 | 22,318 | |||||||||||||||
Occupancy and Equipment | 10,035 | 10,267 | 8,838 | 7,817 | 7,036 | |||||||||||||||
Professional Services & Legal | 2,462 | 1,915 | 1,689 | 2,342 | 2,418 | |||||||||||||||
Telephone, postage and supplies | 1,827 | 1,918 | 1,633 | 1,615 | 1,366 | |||||||||||||||
Marketing and promotion | 1,605 | 1,617 | 1,452 | 1,470 | 1,413 | |||||||||||||||
Data Processing | 1,145 | 1,196 | 1,129 | 1,021 | 1,166 | |||||||||||||||
Client Services | 433 | 557 | 647 | 645 | 712 | |||||||||||||||
FDIC Insurance and Assessments | 409 | 417 | 463 | 627 | 406 | |||||||||||||||
Other Real Estate, Net | 119 | — | — | — | — | |||||||||||||||
Amortization of Intangibles | 1,650 | 1,650 | 562 | 376 | 374 | |||||||||||||||
Other Expenses | 3,565 | 6,170 | 4,682 | 3,331 | 4,000 | |||||||||||||||
63,017 | 64,354 | 49,670 | 43,940 | 41,209 | ||||||||||||||||
Costs related to the Early Retirement of Trust Preferred Securities (TPS) | — | 975 | — | — | — | |||||||||||||||
TPS & REIT Preferred Securities expense | 4,826 | 5,185 | 5,323 | 5,088 | 3,724 | |||||||||||||||
Nonrecurring Expenses(2) | 479 | — | — | — | — | |||||||||||||||
Total Operating Expenses(1)(3) | 68,322 | 70,514 | 54,993 | 49,028 | 44,933 | |||||||||||||||
Income Before Income Taxes, Merger and Other Related Nonrecurring Costs | 51,601 | 53,668 | 44,133 | 19,598 | 38,343 | |||||||||||||||
Income Taxes: | ||||||||||||||||||||
Income Tax Expense | 19,572 | 20,132 | 16,531 | 6,369 | 14,485 | |||||||||||||||
Capital Loss Carryback Tax (Benefit)(4) | — | — | — | (11,897 | ) | — | ||||||||||||||
Nonrecurring Income Tax Expense(2) | (441 | ) | — | — | — | 32 | ||||||||||||||
Total Income Tax Expense | 19,131 | 20,132 | 16,531 | (5,528 | ) | 14,517 | ||||||||||||||
Income Before Merger and Other Related Nonrecurring Costs | 32,470 | 33,536 | 27,602 | 25,126 | 23,826 | |||||||||||||||
Merger and Other Related Nonrecurring Costs, net of tax(2) | — | — | — | 17,611 | — | |||||||||||||||
Net Income | $ | 32,470 | $ | 33,536 | $ | 27,602 | $ | 7,515 | $ | 23,826 | ||||||||||
(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 $32,597 for Q3 2002, $25,126 for Q4 2001and $23,781 for Q3 2001. |
(3) | Total Operating Expenses were $46.0 million in Q3 2002, $49.0 million in Q2 2002 and $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 $15 million in additional capital in Q4 2001. |
Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and SJNB Financial Corp. on a pooling-of-interests basis.
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 9 of 12
GREATER BAY BANCORP
SEPTEMBER 30, 2002—FINANCIAL SUMMARY
($ in 000’s, except share and per share data)
SELECTED YEAR TO DATE CONSOLIDATED OPERATING DATA:
YTD 30-Sep 2002 | YTD 30-Sep 2001 | |||||||
Interest Income | $ | 388,476 | $ | 377,295 | ||||
Interest Expense | 109,968 | 144,178 | ||||||
Net Interest Income Before Provision for Loan Losses | 278,508 | 233,117 | ||||||
Provision for Loan Losses | 52,776 | 25,777 | ||||||
Net Interest Income After Provision for Loan Losses | 225,732 | 207,340 | ||||||
Non-interest Income: | ||||||||
Insurance Agency Commissions & Fees(1) | 64,851 | — | ||||||
Depositor Service Fees | 8,361 | 7,379 | ||||||
Loan and International Banking Fees | 6,924 | 6,613 | ||||||
Trust Fees | 2,644 | 2,729 | ||||||
ATM Fees | 1,840 | 2,231 | ||||||
Gain on Sale of Loans | 2,755 | 2,894 | ||||||
Gain/(loss) on Investments | 12,206 | 6,350 | ||||||
Gain on early retirement of Zero Coupon Convertible Contingent Securities (CODES) | 5,770 | — | ||||||
Other Income | 12,237 | 6,381 | ||||||
117,588 | 34,577 | |||||||
Nonrecurring—Warrant Income(2) | (89 | ) | 581 | |||||
Total Non-interest Income | 117,499 | 35,158 | ||||||
Operating Expenses: | ||||||||
Salaries | 99,396 | 60,883 | ||||||
Deferred Loan Origination Costs | (10,210 | ) | (8,297 | ) | ||||
Benefits | 17,803 | 12,417 | ||||||
Total Compensation and Benefits | 106,989 | 65,003 | ||||||
Occupancy and Equipment | 29,140 | 19,939 | ||||||
Professional Services & Legal | 6,066 | 5,497 | ||||||
Telephone, postage and supplies | 5,378 | 4,412 | ||||||
Marketing and promotion | 4,674 | 4,178 | ||||||
Data Processing | 3,470 | 3,427 | ||||||
Client Services | 1,637 | 2,320 | ||||||
FDIC Insurance and Assessments | 1,289 | 1,135 | ||||||
Other Real Estate, Net | 119 | — | ||||||
Amortization of Intangibles | 3,862 | 1,032 | ||||||
Other Expenses | 14,417 | 10,984 | ||||||
177,041 | 117,927 | |||||||
Costs related to the Early Retirement of Trust Preferred Securities (TPS) | 975 | — | ||||||
TPS & REIT Preferred Securities expense | 15,334 | 8,636 | ||||||
Nonrecurring Expenses(2) | 479 | — | ||||||
Total Operating Expenses(1)(3) | 193,829 | 126,563 | ||||||
Income Before Income Taxes, Merger and Other Related Nonrecurring Costs | 149,402 | 115,935 | ||||||
Income Taxes: | ||||||||
Income Tax Expense | 56,235 | 43,390 | ||||||
Nonrecurring Income Tax Expense(2) | (441 | ) | 244 | |||||
Total Income Tax Expense | 55,794 | 43,634 | ||||||
Income Before Merger and Other Related Nonrecurring Costs | 93,608 | 72,301 | ||||||
Merger and Other Related Nonrecurring Costs, net of tax(2) | — | — | ||||||
Net Income | $ | 93,608 | $ | 72,301 | ||||
(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 $93,735 for YTD September 2002 and $71,964 for YTD September 2001. |
(3) | Total Operating Expenses were $142.5 million in YTD September 2002, excluding operating expenses of ABD. |
Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and SJNB Financial Corp. on a pooling-of-interests basis.
10
Greater Bay Bancorp’s Third Quarter Earnings Results
October 16, 2002
Page 10 of 12
GREATER BAY BANCORP
SEPTEMBER 30, 2002—FINANCIAL SUMMARY
($ in 000’s, except share and per share data)
SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION RATIOS:
Sept 30 2002 | Jun 30 2002 | Mar 31 2002 | Dec 31 2001 | Sept 30 2001 | ||||||||||||||||
Loan to Deposit Ratio | 86.22 | % | 88.37 | % | 89.23 | % | 90.09 | % | 89.87 | % | ||||||||||
Core Bank Loan to Deposit Ratio(1) | 70.53 | % | 71.49 | % | 72.26 | % | 75.41 | % | 75.60 | % | ||||||||||
Ratio of Allowance for Loan Losses to: | ||||||||||||||||||||
Average Loans | 2.74 | % | 2.75 | % | 2.81 | % | 2.80 | % | 2.26 | % | ||||||||||
End of Period Loans | 2.73 | % | 2.68 | % | 2.78 | % | 2.77 | % | 2.23 | % | ||||||||||
Total Nonperforming Assets | 264.12 | % | 294.21 | % | 435.04 | % | 402.79 | % | 440.79 | % | ||||||||||
Ratio of Provision for Loan Losses to Average Loans, annualized | 2.35 | % | 0.79 | % | 1.45 | % | 2.58 | % | 0.77 | % | ||||||||||
Total Nonperforming Loans to Total Loans | 1.02 | % | 0.90 | % | 0.62 | % | 0.69 | % | 0.51 | % | ||||||||||
Total Nonperforming Assets to Total Assets | 0.58 | % | 0.50 | % | 0.35 | % | 0.39 | % | 0.30 | % | ||||||||||
Ratio of Quarterly Net Charge-offs to Average Loans, annualized | 2.15 | % | 0.72 | % | 1.40 | % | 0.52 | % | 0.58 | % | ||||||||||
Ratio of YTD Net Charge-offs to YTD Average Loans, annualized | 1.43 | % | 1.05 | % | 1.40 | % | 0.59 | % | 0.61 | % | ||||||||||
Loan Growth, current quarter to prior year quarter | 7.17 | % | 9.01 | % | 7.08 | % | 10.60 | % | 24.28 | % | ||||||||||
Loan Growth, current quarter to prior quarter, annualized | 0.95 | % | 16.43 | % | 0.24 | % | 10.50 | % | 7.78 | % | ||||||||||
Loan Growth, YTD annualized | 5.89 | % | 8.39 | % | 0.24 | % | 10.60 | % | 10.36 | % | ||||||||||
Deposits Growth, current quarter to prior year quarter | 11.71 | % | 8.60 | % | 4.74 | % | 5.05 | % | 8.93 | % | ||||||||||
Deposits Growth, current quarter to prior quarter, annualized | 10.84 | % | 20.52 | % | 4.16 | % | 9.51 | % | -0.51 | % | ||||||||||
Deposits Growth, YTD annualized | 12.16 | % | 12.49 | % | 4.16 | % | 5.05 | % | 3.46 | % | ||||||||||
Recurring Revenue Growth, current quarter to prior year quarter | 61.34 | % | 48.74 | % | 33.01 | % | 17.96 | % | 18.97 | % | ||||||||||
Recurring Revenue Growth, current quarter to prior quarter, annualized | 43.51 | % | 62.91 | % | 72.94 | % | 25.89 | % | 9.12 | % | ||||||||||
Net Interest Income Growth, current quarter to prior year quarter | 13.99 | % | 21.59 | % | 23.22 | % | 18.47 | % | 18.50 | % | ||||||||||
Net Interest Income Growth, current quarter to prior quarter, annualized | -5.80 | % | 4.93 | % | 21.42 | % | 33.88 | % | 20.27 | % | ||||||||||
Average Earning Assets to Average Total Assets | 92.34 | % | 92.04 | % | 93.89 | % | 94.76 | % | 94.38 | % | ||||||||||
Average Earning Assets to Average Interest-Bearing Liabilities | 120.24 | % | 119.14 | % | 121.18 | % | 123.59 | % | 123.34 | % | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Tangible Equity and REIT Preferred Securities to Tangible Assets | 6.11 | % | 5.45 | % | 5.01 | % | 5.78 | % | 6.10 | % | ||||||||||
Tangible Equity and REIT Preferred Securities to Tangible Assets (including ABD value) | 7.72 | % | 7.05 | % | 6.68 | % | 5.78 | % | 6.10 | % | ||||||||||
Leverage | 8.17 | % | 7.77 | % | 7.67 | % | 8.01 | % | 7.86 | % | ||||||||||
Tier 1 Risk Based Capital | 11.35 | % | 10.66 | % | 10.31 | % | 10.49 | % | 10.05 | % | ||||||||||
Total Risk Based Capital | 12.61 | % | 12.26 | % | 11.99 | % | 12.79 | % | 12.90 | % | ||||||||||
Risk Weighted Assets | $ | 5,979,732 | $ | 6,005,431 | $ | 5,845,147 | $ | 5,792,917 | $ | 5,593,341 | ||||||||||
Book Value Per Share | $ | 11.26 | $ | 10.50 | $ | 9.75 | $ | 9.31 | $ | 9.66 | ||||||||||
Total Shares Outstanding | 51,442,027 | 51,192,359 | 50,501,861 | 49,831,682 | 49,717,960 |
(1) | Includes the eleven core banking divisions and excludes ABD, Matsco, Capco, Pacific Business Funding and Corporate Finance. |
Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and San Jose National Bank on a pooling-of-interests basis.
11
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 11 of 12
GREATER BAY BANCORP
SEPTEMBER 30, 2002—FINANCIAL SUMMARY
($ in 000’s, except share and per share data)
SELECTED QUARTERLY CONSOLIDATED OPERATING RATIOS:
Third Quarter 2002 | Second Quarter 2002 | First Quarter 2002 | Fourth Quarter 2001 | Third Quarter 2001 | ||||||||||||||||
GAAP EPS (including Amortization of Intangibles) | ||||||||||||||||||||
Income Per Share (Before Nonrecurring and Merger Items)(1)(2)(3) | ||||||||||||||||||||
Basic(4) | $ | 0.61 | $ | 0.64 | $ | 0.54 | $ | 0.51 | $ | 0.48 | ||||||||||
Diluted | $ | 0.60 | $ | 0.62 | $ | 0.52 | $ | 0.49 | $ | 0.46 | ||||||||||
Income Per Share (Before Merger Items)(3) | ||||||||||||||||||||
Basic(4) | $ | 0.61 | $ | 0.64 | $ | 0.54 | $ | 0.51 | $ | 0.48 | ||||||||||
Diluted | $ | 0.60 | $ | 0.62 | $ | 0.52 | $ | 0.49 | $ | 0.46 | ||||||||||
Net Income Per Share | ||||||||||||||||||||
Basic(4) | $ | 0.61 | $ | 0.64 | $ | 0.54 | $ | 0.15 | $ | 0.48 | ||||||||||
Diluted | $ | 0.60 | $ | 0.62 | $ | 0.52 | $ | 0.15 | $ | 0.46 | ||||||||||
Cash EPS (excluding Amortization of Intangibles) | ||||||||||||||||||||
Income Per Share (Before Nonrecurring and Merger Items)(1)(2)(3) | ||||||||||||||||||||
Basic(4) | $ | 0.63 | $ | 0.66 | $ | 0.55 | $ | 0.51 | $ | 0.48 | ||||||||||
Diluted | $ | 0.62 | $ | 0.63 | $ | 0.53 | $ | 0.49 | $ | 0.47 | ||||||||||
Income Per Share (Before Merger Items)(3) | ||||||||||||||||||||
Basic(4) | $ | 0.63 | $ | 0.66 | $ | 0.55 | $ | 0.51 | $ | 0.48 | ||||||||||
Diluted | $ | 0.61 | $ | 0.63 | $ | 0.53 | $ | 0.49 | $ | 0.47 | ||||||||||
Net Income Per Share(3) | ||||||||||||||||||||
Basic(4) | $ | 0.63 | $ | 0.66 | $ | 0.55 | $ | 0.16 | $ | 0.48 | ||||||||||
Diluted | $ | 0.61 | $ | 0.63 | $ | 0.53 | $ | 0.15 | $ | 0.47 | ||||||||||
Weighted Average Common Shares Outstanding | 51,339,000 | 50,685,000 | 50,204,000 | 49,689,000 | 49,588,000 | |||||||||||||||
Weighted Average Common & Common Equivalent Shares Outstanding | 54,504,000 | 54,500,000 | 53,026,000 | 51,221,000 | 51,352,000 | |||||||||||||||
GAAP Ratios (including Amortization of Intangibles) | ||||||||||||||||||||
Return on Period Average Assets, annualized(1) | 1.53 | % | 1.60 | % | 1.39 | % | 1.31 | % | 1.32 | % | ||||||||||
Return on Period Average Equity, annualized(1) | 20.44 | % | 22.48 | % | 20.38 | % | 21.23 | % | 20.42 | % | ||||||||||
Net Interest Margin—Average Earning Assets | 4.68 | % | 4.85 | % | 4.98 | % | 4.83 | % | 4.76 | % | ||||||||||
Operating Expense Ratio (Before Nonrecurring and Merger Items) | 3.18 | % | 3.36 | % | 2.78 | % | 2.55 | % | 2.49 | % | ||||||||||
Operating Expense Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS and TPS & REIT preferred securities expense) | 2.95 | % | 3.07 | % | 2.51 | % | 2.29 | % | 2.29 | % | ||||||||||
Efficiency Ratio (Before Nonrecurring and Merger Items) | 45.91 | % | 52.95 | % | 47.77 | % | 50.25 | % | 49.05 | % | ||||||||||
Efficiency Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS and TPS & REIT preferred securities expense) | 42.64 | % | 48.32 | % | 43.14 | % | 45.03 | % | 44.99 | % | ||||||||||
Efficiency Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS, TPS & REIT preferred securities expense and excluding the operating results of ABD) | 33.60 | % | 40.75 | % | 40.53 | % | 45.03 | % | 44.99 | % | ||||||||||
Cash Ratios (excluding Amortization of Intangibles) | ||||||||||||||||||||
Return on Period Average Assets, annualized(1) | 1.60 | % | 1.68 | % | 1.42 | % | 1.33 | % | 1.34 | % | ||||||||||
Return on Period Average Equity, annualized(1) | 28.79 | % | 32.37 | % | 23.89 | % | 22.63 | % | 21.74 | % | ||||||||||
Net Interest Margin—Average Earning Assets | 4.68 | % | 4.85 | % | 4.98 | % | 4.83 | % | 4.76 | % | ||||||||||
Operating Expense Ratio (Before Nonrecurring and Merger Items) | 3.10 | % | 3.28 | % | 2.75 | % | 2.54 | % | 2.47 | % | ||||||||||
Operating Expense Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS and TPS & REIT preferred securities expense) | 2.87 | % | 2.99 | % | 2.48 | % | 2.27 | % | 2.26 | % | ||||||||||
Efficiency Ratio (Before Nonrecurring and Merger Items) | 44.79 | % | 51.71 | % | 47.28 | % | 49.86 | % | 48.65 | % | ||||||||||
Efficiency Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS and TPS & REIT preferred securities expense) | 41.52 | % | 47.08 | % | 42.66 | % | 44.65 | % | 44.58 | % | ||||||||||
Efficiency Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS, TPS & REIT preferred securities expense and excluding the operating results of ABD) | 33.58 | % | 40.74 | % | 40.51 | % | 44.65 | % | 44.58 | % |
(1) | Excludes nonrecurring and Merger items of $127 thousand, net of tax, in Q3 2002. 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. |
(2) | Components of Nonrecurring and Merger Items. Net Income excluding these items is $32,597 for Q3 2002, $25,126 for Q4 2001 and $23,781 for Q3 2001. |
(3) | 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. |
(4) | Net income available to common shareholders is based on total net income less preferred dividends of $1.3 million for both Q3 and Q2 2002 and $263 thousand for Q1 2002. |
Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and SJNB Financial Corp. on a pooling-of-interests basis. |
12
Greater Bay Bancorp’s Third Quarter 2002 Earnings Results
October 16, 2002
Page 12 of 12
GREATER BAY BANCORP
SEPTEMBER 30, 2002—FINANCIAL SUMMARY
($ in 000’s, except share and per share data)
SELECTED YEAR TO DATE CONSOLIDATED OPERATING RATIOS:
YTD 30-Sep 2002 | YTD 30-Sep 2001 | |||||||
GAAP EPS (including Amortization of Intangibles) | ||||||||
Income Per Share (Before Nonrecurring and Merger Items)(1)(2)(3) | ||||||||
Basic(4) | $ | 1.79 | $ | 1.46 | ||||
Diluted | $ | 1.73 | $ | 1.41 | ||||
Income Per Share (Before Merger Items)(3) | ||||||||
Basic(4) | $ | 1.78 | $ | 1.46 | ||||
Diluted | $ | 1.73 | $ | 1.41 | ||||
Net Income Per Share | ||||||||
Basic(4) | $ | 1.78 | $ | 1.46 | ||||
Diluted | $ | 1.73 | $ | 1.41 | ||||
Cash EPS (excluding Amortization of Intangibles) | ||||||||
Income Per Share (Before Nonrecurring and Merger Items)(1)(2)(3) | ||||||||
Basic(4) | $ | 1.83 | $ | 1.47 | ||||
Diluted | $ | 1.78 | $ | 1.42 | ||||
Income Per Share (Before Merger Items)(3) | ||||||||
Basic(4) | $ | 1.83 | $ | 1.48 | ||||
Diluted | $ | 1.78 | $ | 1.43 | ||||
Net Income Per Share(3) | ||||||||
Basic(4) | $ | 1.83 | $ | 1.48 | ||||
Diluted | $ | 1.78 | $ | 1.43 | ||||
Weighted Average Common Shares Outstanding | 50,891,000 | 49,426,000 | ||||||
Weighted Average Common & Common Equivalent Shares Outstanding | 54,039,000 | 51,154,000 | ||||||
GAAP Ratios (including Amortization of Intangibles) | ||||||||
Return on Period Average Assets, annualized(1) | 1.51 | % | 1.49 | % | ||||
Return on Period Average Equity, annualized(1) | 21.10 | % | 22.14 | % | ||||
Net Interest Margin—Average Earning Assets | 4.83 | % | 5.17 | % | ||||
Operating Expense Ratio (Before Nonrecurring and Merger Items) | 3.11 | % | 2.62 | % | ||||
Operating Expense Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS and TPS & REIT preferred securities expense) | 2.85 | % | 2.44 | % | ||||
Efficiency Ratio (Before Nonrecurring and Merger Items) | 48.81 | % | 47.28 | % | ||||
Efficiency Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS and TPS & REIT preferred securities expense) | 44.70 | % | 44.05 | % | ||||
Efficiency Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS, TPS & REIT preferred securities expense and excluding the operating results of ABD) | 38.06 | % | 44.05 | % | ||||
Cash Ratios (excluding Amortization of Intangibles) | ||||||||
Return on Period Average Assets, annualized(1) | 1.57 | % | 1.51 | % | ||||
Return on Period Average Equity, annualized(1) | 28.23 | % | 23.65 | % | ||||
Net Interest Margin—Average Earning Assets | 4.83 | % | 5.17 | % | ||||
Operating Expense Ratio (Before Nonrecurring and Merger Items) | 3.05 | % | 2.60 | % | ||||
Operating Expense Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS and TPS & REIT preferred securities expense) | 2.79 | % | 2.42 | % | ||||
Efficiency Ratio (Before Nonrecurring and Merger Items) | 47.84 | % | 46.89 | % | ||||
Efficiency Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS and TPS & REIT preferred securities expense) | 43.72 | % | 43.67 | % | ||||
Efficiency Ratio (Before Nonrecurring and Merger Items, costs related to early retirement of TPS, TPS & REIT preferred securities expense and excluding the operating results of ABD) | 38.04 | % | 43.67 | % |
(1) | Excludes Nonrecurring and Merger Items of $127 thousand, net of tax, in YTD September 2002 and $337 thousand, net of tax, in YTD September 2001. |
(2) | Components of Nonrecurring and Merger Items. Net Income excluding these items is $93,735 for YTD September 2002 and $71,964 for YTD September 2001. |
(3) | 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. |
(4) | Net income available to common shareholders is based on total net income less preferred dividends of $2.9 million in YTD September 2002. |
Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and SJNB Financial Corp. on a pooling-of-interests basis.
13