Exhibit 99
Press Release dated February 1, 2005
For Information Contact | ||
At Greater Bay Bancorp: | At Silverman Heller Associates: | |
Byron A. Scordelis, President and CEO | Philip Bourdillon/Gene Heller | |
(650) 614-5751 | (310) 208-2550 | |
James S. Westfall, EVP and CFO | ||
(650) 813-8275 |
FOR IMMEDIATE RELEASE
GREATER BAY BANCORP REPORTS FOURTH QUARTER
AND YEAR END 2004 RESULTS
PALO ALTO, Calif., February 1, 2005 — Greater Bay Bancorp (Nasdaq:GBBK), a $6.9 billion in assets financial services holding company, today announced results for the fourth quarter and the year ended December 31, 2004.
For the fourth quarter of 2004, Greater Bay Bancorp’snet income was $21.1 million, or $0.33 per fully diluted common share, compared to $21.4 million, or $0.37 per fully diluted common share, for the fourth quarter of 2003, and $22.5 million, or $0.36 per fully diluted common share, for the third quarter of 2004. For the year ended December 31, 2004,net income was $92.9 million, or $1.50 per fully diluted common share, compared to $92.0 million, or $1.62 per fully diluted common share for the year ended December 31, 2003.
The reported fully diluted earnings per common share reflect the Company’s implementation of a recent accounting pronouncement relating to contingently convertible debt for reporting purposes. This accounting change requires that the common shares issuable upon conversion of the Company’s outstanding Zero Coupon Senior Convertible Contingent Debt Securities (CODES) be considered on an if-converted basis in calculating fully diluted earnings per common share. The accounting pronouncement also required the Company to restate its fully diluted earnings per common share for prior periods. The effect of this implementation was to decrease the Company’s reported fully diluted earnings per common share by $0.04 for the fourth quarter of 2004, $0.04 for the third quarter of 2004, and $0.13 for the year ended December 31, 2004.
Return on average common equity for the fourth quarter of 2004 was 12.69% versus 13.05% for the fourth quarter of 2003, and 13.90% for the third quarter of 2004. Return on average common equity for the year ended December 31, 2004 was 14.21% compared to 14.52% for the same period in 2003.Return on average assets for the fourth quarter of 2004 was 1.18% compared to 1.10% for the fourth quarter of 2003, and 1.20% in the third quarter of 2004. Return on average assets rose to 1.25% for the year ended December 31, 2004 versus 1.16% for the same period in 2003.
Greater Bay Bancorp Reports Fourth Quarter and Year End 2004 Results
February 1, 2005
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Operating results for the fourth quarter of 2004 included a gain on sale of Small Business Administration loans of $1.2 million and a gain on sale of an equity investment of $1.1 million, partially offset by a $1.7 million adjustment for deferred rent on leased corporate properties.
“We are pleased to report solid core operating performance for 2004, including three consecutive quarters of growth in our loan portfolio,” commented Byron A. Scordelis, President and Chief Executive Officer of Greater Bay Bancorp. “During the year, we continued our proactive efforts to address the evolving interest rate environment, added to our executive management team, and reinforced our credit, internal control and growth disciplines in ways that we believe further enhance our potential for delivering superior long-term shareholder returns.”
Non-Interest Income
Non-interest income for the fourth quarter of 2004 increased to $44.7 million from $40.5 million in the fourth quarter of 2003. This increase was primarily attributable to higher insurance commissions and fees of $2.0 million in the Company’s subsidiary, ABD Insurance and Financial Services (“ABD”), an increase of $1.6 million in rental revenue on operating leases booked by the Company’s small ticket equipment leasing unit and an increase of $0.5 million in gains on sale of securities. These increases were partially offset by a $1.1 million reduction in loan and international banking fees.
Non-interest income during the fourth quarter of 2004 was $44.7 million compared to $47.8 million during the third quarter of 2004. This decrease was primarily attributable to a cyclical $3.5 million decline in insurance commissions and fees and a $0.9 million decline in loan and international banking fees. These decreases were partially offset by a $0.4 million increase in rental revenue on operating leases and $1.2 million increase in gains on sale of loans.
For the year ended December 31, 2004, non-interest income rose to $186.6 million from $171.5 million for the year ended December 31, 2003. This growth included an increase of $13.0 million in insurance commissions and fees and an increase of $6.0 million in rental revenue on operating leases. These increases were partially offset by lower gains on sale of loans of $2.0 million and a decline in loan and international banking fees of $2.3 million.
Non-interest income as a percentage of total revenues in the fourth quarter of 2004 was 39.6%, compared to 35.0% in the fourth quarter of 2003 and 40.5% in the third quarter of 2004. For the year ended December 31, 2004, non-interest income as a percentage of total revenues increased to 39.5% from 36.5% for the year ended December 31, 2003.
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February 1, 2005
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Operating Expenses
Operating expenses for the fourth quarter of 2004 were $78.5 million or $4.4 million higher than operating expenses for the fourth quarter of 2003. Major components of the change from the 2003 period included increases of:
• | $2.8 million in legal and professional fees entirely related to Sarbanes-Oxley compliance activities; |
• | $1.6 million in occupancy and equipment expenses entirely related to the deferred rent adjustment cited above; and |
• | $1.2 million in depreciation on equipment leased to others. |
The above cost increases were partially offset by a $2.2 million decrease in compensation expense.
Operating expenses decreased during the fourth quarter of 2004 by approximately $0.2 million compared to the third quarter of 2004.
Operating expenses for the year ended December 31, 2004 were $22.1 million higher than operating expenses for the year ended December 31, 2003. Major components of the change from the 2003 period included increases of:
• | $12.6 million in ABD expenses, reflecting business activity growth; |
• | $5.0 million in depreciation on equipment leased to others; and |
• | $4.3 million in legal and professional fees entirely related to Sarbanes-Oxley compliance activities that in total amounted to $6.2 million in 2004. |
Balance Sheet
At December 31, 2004, Greater Bay Bancorp’s total assets were $6.9 billion, total securities were $1.6 billion, total loans were $4.5 billion and total deposits were $5.1 billion.
Between December 31, 2003 and December 31, 2004, total loans declined by $57.9 million. Portfolio contraction was caused by declines in real estate construction loans of $58.0 million and commercial term real estate loans of $38.6 million. These declines were partially offset by an increase in commercial loans of $31.6 million.
Total loans increased by $10.2 million from September 30, 2004 to December 31, 2004. This fourth quarter growth reflects increases in the real estate construction and land portfolio of $19.6 million, in commercial loans of $17.5 million, and in other real estate loans of $19.1 million. These increases were partially offset by a decline in term real estate loans of $49.8 million.
Total core deposits (excluding institutional time deposits) at December 31, 2004 increased by $253.9 million, compared to December 31, 2003 and decreased by $74.5 million compared to September 30, 2004. Institutional time deposits and other wholesale borrowings at December 31, 2004 declined by $946.1 million compared to December 31, 2003 and decreased by $143.6 million compared to September 30, 2004.
“We are encouraged to note the continued rise in commercial loans outstanding as well as the second consecutive quarterly increase in construction loan totals which we believe to be consistent with the
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February 1, 2005
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emergence of the Bay Area economy from its recent period of economic slowdown,” stated Mr. Scordelis. “While our core deposit portfolio nominally declined during the quarter, this was the result of an expected reduction in a few large deposit accounts. We remain pleased with our full year results in this important area.”
During the fourth quarter of 2004, the Company continued the planned reduction of its securities portfolio. Total securities at December 31, 2004 were $1.6 billion compared to $2.2 billion at December 31, 2003 and $1.8 billion at September 30, 2004. Of the decrease from September 30, 2004, approximately $100.0 million was attributable to the sale of securities (at a total gain of $1.6 million) with the remaining reduction resulting from normal portfolio run-off.
“Fourth quarter security portfolio reductions were consistent with our planned balance sheet de-leveraging effort that began in the second quarter of 2004,” stated James S. Westfall, Executive Vice President and Chief Financial Officer. “The portfolio’s shorter duration and reduced available-for-sale component has improved the Company’s position relative to potential upward interest rate movements.”
Credit Quality Overview
Net charge-offs in the fourth quarter of 2004 were $4.6 million, or 0.41% of average annualized loans, compared to $9.3 million or 0.81% for the fourth quarter of 2003 and $3.6 million or 0.32% for the third quarter of 2004. Net charge-offs for the year ended December 31, 2004 totaled $17.7 million or 0.40% of average annualized loans, compared to $31.6 million or 0.67% for 2003.
Nonperforming assets were $44.3 million at December 31, 2004, compared to $61.7 million at December 31, 2003 and $59.3 million at September 30, 2004. The ratio of nonperforming assets to total assets was 0.64% at December 31, 2004, compared to 0.81% at December 31, 2003 and 0.83% at September 30, 2004. The ratio of non-accrual loans to total loans was 0.98% at December 31, 2004, compared to 1.36% at December 31, 2003 and 1.31% at September 30, 2004.
The Company’s provision for credit losses was $0.2 million for the fourth quarter of 2004 compared to $7.0 million for the fourth quarter of 2003 and $1.3 million for the third quarter of 2004. The provision for the year ended December 31, 2004 was $5.5 million compared to $28.2 million for 2003.
The allowance for loan and lease losses was $107.5 million or 2.39% of total loans at December 31, 2004, compared to $124.5 million or 2.73% of total loans at December 31, 2003 and $113.5 million or 2.53% of total loans at September 30, 2004. At December 31, 2004, the Company reclassified $6.5 million of its allowance for loan and lease losses related to unfunded credit commitments from the allowance for loan and lease losses to other liabilities. Prior periods have been similarly reclassified along with the relevant financial ratios. The process used in the determination of the adequacy of the reserve for unfunded credit commitments is consistent with the process for the allowance for loan and lease losses.
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February 1, 2005
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Capital Overview
The capital ratios of Greater Bay Bancorp and its subsidiary bank continue to substantially exceed well-capitalized guidelines established by bank regulatory agencies.
The Company’s total equity to assets ratio was 10.99% at December 31, 2004 compared to 9.88% at December 31, 2003 and 10.40% at September 30, 2004. The Company’s total tangible equity to tangible assets ratio was 7.64% at December 31, 2004 compared to 7.12% at December 31, 2003 and 7.55% as of September 30, 2004. The increase during the fourth quarter primarily reflected a contraction of $200.7 million in tangible assets partially offset by an $8.9 million decrease in tangible equity.
Purchases under the Company’s $70.0 million common share repurchase program during 2004 totaled approximately 2.2 million shares at an average price of $27.26 per share. There were no common share repurchases during the fourth quarter. Remaining unused repurchase authority at December 31, 2004 was $10.8 million.
Net Interest Margin and Interest Rate Risk Management
Greater Bay Bancorp’s average net interest margin for the fourth quarter of 2004 was 4.36%, compared to 4.33% for the fourth quarter of 2003 and 4.27% for the third quarter of 2004.
The nine basis point increase in the net interest margin from the third quarter reflects a 25 basis point increase in interest-earning asset yields less a corresponding 16 basis point increase in related funding costs.
“Fourth quarter margin growth reflected the effect of rising short term interest rates on the Company’s net asset sensitive position, an increased concentration of loans in the earning asset mix, lower nonperforming asset levels and restrained upward deposit pricing,” stated Mr. Westfall.
Other Matters
The Company is continuing its discussions with the Internal Revenue Service related to the previously disclosed notice of proposed adjustment concerning merger expenses deducted in 2000 and 2001. Based upon analysis by the Company and its outside advisors, no tax expense was recorded related to these items in the fourth quarter of 2004.
In response to recent developments in the insurance industry related to contingency and override revenue received by commercial insurance brokers from carriers, the Company engaged outside counsel to conduct a compliance review of ABD’s contingency commission arrangements and marketing practices. The compliance review included extensive interviews with ABD personnel, analysis of contingency arrangements and review of producer compensation, client files and email activity. While not yet formally presented, the review process has been completed, and no evidence
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was found to indicate any improper activities of the type alleged against other firms in New York, nor were any systemic compliance-related issues identified in these general areas of concern.
Outlook For 2005
Our guidance for 2005 is as follows:
• | Loan growth – based on the current forecast of moderate economic growth in our primary market area, and our clients’ current business outlook, we anticipate future loan portfolio growth in the low to mid-single digits. |
• | Deposit growth –we anticipate future core deposit growth in the mid-single digits. We intend to adjust our use of institutional time deposits and other non-relationship funding sources to meet funding needs not satisfied by core deposit and capital funding sources. |
• | Credit quality –based on our continued aggressive credit risk management and the current economic outlook, we anticipate future net charge-offs from 40 basis points to 50 basis points of average loans outstanding. |
• | Net interest margin – based on balance sheet trends and the rate sensitivity of the Company’s assets and liabilities, we expect the margin to fluctuate between 4.35% and 4.50%. |
Conference Call
The Company will broadcast its earnings conference call live via the Internet at 8:00 a.m. (PST) on February 1, 2005. Participants may access this conference call through the Company’s website athttp://www.gbbk.com, under the “Investor Info” link, or throughhttp://www.FullDisclosure.com. You should go to either of these websites 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 websites. A telephone replay will also be available beginning at 11 a.m. PST on February 1 through midnight on February 7, 2005 by dialing (800)-642-1687 or (706)-645-9291 and providing Conference ID 3553193.
About Greater Bay Bancorp
Greater Bay Bancorp, a diversified financial services holding company, provides community banking services in the Greater San Francisco Bay Area through Greater Bay Bank, N.A.’s community banking organization, including 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. Nationally, Greater Bay Bancorp provides specialized leasing and loan services through its specialty
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finance group, which includes Matsco, CAPCO and Greater Bay Capital. ABD Insurance and Financial Services, the Company’s insurance brokerage subsidiary, provides commercial insurance brokerage, employee benefits consulting and risk management solutions to business clients throughout the United States.
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 interest margin, net loan charge-offs, asset quality, level of loan loss reserves, growth in loans and deposits 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 and the quality of the Company’s earning assets; (2) any difficulties that may be encountered in consolidating the bank subsidiaries and in realizing operating efficiencies; (3) government regulation, including developments related to the ongoing insurance industry-wide investigations into contingent commissions and override payments, and the ultimate resolution of the notice of proposed adjustment from the IRS; and (4) 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, 2003. Greater Bay does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
For additional information and press releases about Greater Bay Bancorp, visit the Company’s website athttp://www.gbbk.com.
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Greater Bay Bancorp Reports Fourth Quarter and Year End 2004 Results
February 1, 2005
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GREATER BAY BANCORP
DECEMBER 31, 2004 - FINANCIAL SUMMARY (UNAUDITED)
($ in 000’s)
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA:
Dec 31 2004 | Sept 30 2004 | Jun 30 2004 | Mar 31 2004 | Dec 31 2003 | ||||||||||||||||
Cash and Due From Banks | $ | 171,657 | $ | 184,639 | $ | 242,517 | $ | 251,895 | $ | 238,534 | ||||||||||
Fed Funds Sold | — | 8,000 | 22,000 | 216,000 | 35,000 | |||||||||||||||
Securities | 1,615,273 | 1,835,647 | 2,256,839 | 2,177,330 | 2,229,509 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 1,969,351 | 1,951,813 | 1,941,573 | 1,929,257 | 1,937,766 | |||||||||||||||
Term Real Estate - Commercial | 1,597,756 | 1,647,568 | 1,658,921 | 1,632,921 | 1,636,356 | |||||||||||||||
Total Commercial | 3,567,107 | 3,599,381 | 3,600,494 | 3,562,178 | 3,574,122 | |||||||||||||||
Real Estate Construction and Land | 479,113 | 459,533 | 415,155 | 479,692 | 537,079 | |||||||||||||||
Real Estate Other | 291,737 | 272,684 | 268,947 | 261,127 | 273,504 | |||||||||||||||
Consumer and Other | 155,829 | 152,553 | 171,003 | 146,022 | 167,593 | |||||||||||||||
Deferred Fees and Discounts, Net | (13,902 | ) | (14,457 | ) | (12,575 | ) | (12,812 | ) | (14,491 | ) | ||||||||||
Total Loans, Net of Deferred Fees and Discounts | 4,479,884 | 4,469,694 | 4,443,024 | 4,436,207 | 4,537,807 | |||||||||||||||
Allowance for Loan and Lease Losses (1) | (107,517 | ) | (113,460 | ) | (116,045 | ) | (118,411 | ) | (124,489 | ) | ||||||||||
Total Loans, Net (1) | 4,372,367 | 4,356,234 | 4,326,979 | 4,317,796 | 4,413,318 | |||||||||||||||
Goodwill | 212,432 | 178,317 | 178,317 | 178,317 | 177,991 | |||||||||||||||
Other Intangible Assets | 39,228 | 41,310 | 43,544 | 45,778 | 47,238 | |||||||||||||||
Other Assets | 531,864 | 507,346 | 544,539 | 455,289 | 458,372 | |||||||||||||||
Total Assets (1) | $ | 6,942,821 | $ | 7,111,493 | $ | 7,614,735 | $ | 7,642,405 | $ | 7,599,962 | ||||||||||
Deposits: | ||||||||||||||||||||
Demand, Non-Interest Bearing | $ | 1,063,036 | $ | 1,053,348 | $ | 1,045,651 | $ | 1,030,169 | $ | 1,077,648 | ||||||||||
NOW, MMDA and Savings | 3,263,716 | 3,272,922 | 3,361,211 | 3,133,005 | 2,858,647 | |||||||||||||||
Time Deposits, $100,000 and over | 647,531 | 716,911 | 725,753 | 696,885 | 735,657 | |||||||||||||||
Other Time Deposits | 139,320 | 152,376 | 174,297 | 321,384 | 640,715 | |||||||||||||||
Total Deposits | 5,113,603 | 5,195,557 | 5,306,912 | 5,181,443 | 5,312,667 | |||||||||||||||
Other Borrowings | 578,664 | 714,883 | 1,112,334 | 1,270,255 | 1,071,880 | |||||||||||||||
Subordinated Debt | 210,311 | 210,311 | 210,311 | 210,311 | 210,311 | |||||||||||||||
Other Liabilities (1) | 264,556 | 238,221 | 257,976 | 232,075 | 242,425 | |||||||||||||||
Total Liabilities (1) | 6,167,134 | 6,358,972 | 6,887,533 | 6,894,084 | 6,837,283 | |||||||||||||||
Preferred Stock of Real Estate Investment Trust Subsidiaries | 12,621 | 12,582 | 12,162 | 12,162 | 12,162 | |||||||||||||||
Convertible Preferred Stock | 103,816 | 91,917 | 91,924 | 92,050 | 91,752 | |||||||||||||||
Common Shareholders’ Equity | 659,250 | 648,022 | 623,116 | 644,109 | 658,765 | |||||||||||||||
Total Equity | 763,066 | 739,939 | 715,040 | 736,159 | 750,517 | |||||||||||||||
Total Liabilities and Total Equity (1) | $ | 6,942,821 | $ | 7,111,493 | $ | 7,614,735 | $ | 7,642,405 | $ | 7,599,962 | ||||||||||
Average Quarterly Total Loans, excluding Nonaccrual | $ | 4,415,129 | $ | 4,412,082 | $ | 4,414,731 | $ | 4,450,875 | $ | 4,494,411 | ||||||||||
Average Quarterly Securities | $ | 1,792,892 | $ | 2,135,059 | $ | 2,325,402 | $ | 2,272,026 | $ | 2,397,036 | ||||||||||
Average Quarterly Interest Earning Assets | $ | 6,208,021 | $ | 6,547,141 | $ | 6,740,133 | $ | 6,722,901 | $ | 6,891,447 | ||||||||||
Average Quarterly Deposits | $ | 5,295,406 | $ | 5,311,140 | $ | 5,280,262 | $ | 5,210,518 | $ | 5,382,868 | ||||||||||
Average Quarterly Interest Bearing Liabilities | $ | 5,004,480 | $ | 5,383,185 | $ | 5,613,803 | $ | 5,533,915 | $ | 5,720,832 | ||||||||||
Average Quarterly Assets (1) | $ | 7,085,307 | $ | 7,442,983 | $ | 7,637,696 | $ | 7,554,333 | $ | 7,697,315 | ||||||||||
Average Quarterly Common Shareholders’ Equity | $ | 660,867 | $ | 642,523 | $ | 638,371 | $ | 674,670 | $ | 651,027 | ||||||||||
Average Quarterly Total Equity | $ | 752,913 | $ | 734,443 | $ | 730,420 | $ | 766,721 | $ | 735,280 | ||||||||||
Average YTD Interest Earning Assets | $ | 6,553,500 | $ | 6,669,512 | $ | 6,731,632 | $ | 6,722,901 | $ | 7,084,821 | ||||||||||
Average YTD Assets (1) | $ | 7,431,444 | $ | 7,544,040 | $ | 7,595,354 | $ | 7,554,333 | $ | 7,915,037 | ||||||||||
Average YTD Common Shareholders’ Equity | $ | 654,095 | $ | 651,820 | $ | 656,520 | $ | 674,670 | $ | 633,503 | ||||||||||
Average YTD Total Equity | $ | 746,111 | $ | 743,826 | $ | 748,570 | $ | 766,721 | $ | 714,113 | ||||||||||
Total Regulatory Capital | ||||||||||||||||||||
Tier I Capital | $ | 727,319 | $ | 733,579 | $ | 727,214 | $ | 704,790 | $ | 745,586 | ||||||||||
Total Risk-based Capital | $ | 797,923 | $ | 804,839 | $ | 799,306 | $ | 775,571 | $ | 818,743 | ||||||||||
Nonperforming Assets | ||||||||||||||||||||
Nonaccrual Loans | $ | 43,711 | $ | 58,741 | $ | 42,230 | $ | 48,042 | $ | 61,700 | ||||||||||
OREO | — | — | — | 1,200 | — | |||||||||||||||
Other Nonperforming Assets | 569 | 534 | — | — | — | |||||||||||||||
Total Nonperforming Assets | $ | 44,280 | $ | 59,275 | $ | 42,230 | $ | 49,242 | $ | 61,700 | ||||||||||
Greater Bay Trust Company Assets | $ | 634,343 | $ | 653,910 | $ | 647,022 | $ | 640,063 | $ | 629,333 |
(1) | As of December 31, 2004, we reclassified the reserve for unfunded credit commitments from the allowance for loan losses to other liabilities. Amounts presented prior to the fourth quarter of 2004 have been reclassified to conform with the current presentation. |
Greater Bay Bancorp Reports Fourth Quarter and Year End 2004 Results
February 1, 2005
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GREATER BAY BANCORP
DECEMBER 31, 2004 - FINANCIAL SUMMARY (UNAUDITED)
($ in 000’s)
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
Fourth Quarter 2004 | Third Quarter 2004 | Second Quarter 2004 | First Quarter 2004 | Fourth Quarter 2003 | ||||||||||||||||
Interest Income | $ | 92,576 | $ | 93,574 | $ | 93,604 | $ | 96,745 | $ | 98,197 | ||||||||||
Interest Expense | 24,473 | 23,307 | 21,722 | 21,374 | 22,975 | |||||||||||||||
Net Interest Income Before Provision for Credit Losses | 68,103 | 70,267 | 71,882 | 75,371 | 75,222 | |||||||||||||||
Provision for Credit Losses | 213 | 1,308 | 2,000 | 2,000 | 7,000 | |||||||||||||||
Net Interest Income After Provision for Credit Losses | 67,890 | 68,959 | 69,882 | 73,371 | 68,222 | |||||||||||||||
Non-interest Income: | ||||||||||||||||||||
Insurance Commissions and Fees | 29,727 | 33,276 | 32,916 | 34,581 | 27,747 | |||||||||||||||
Rental Revenue on Operating Leases | 3,500 | 3,067 | 2,665 | 2,317 | 1,934 | |||||||||||||||
Service Charges and Other Fees | 2,611 | 2,599 | 2,624 | 2,623 | 2,754 | |||||||||||||||
Gains on Sale of Securities, net | 1,636 | 2,820 | 1,572 | 2,342 | 1,175 | |||||||||||||||
Gains on Sale of Loans | 1,315 | 129 | 699 | 338 | 1,129 | |||||||||||||||
Loan and International Banking Fees | 1,094 | 1,953 | 1,962 | 2,036 | 2,172 | |||||||||||||||
Trust Fees | 1,041 | 972 | 974 | 851 | 925 | |||||||||||||||
ATM Network Revenue | 302 | 314 | 333 | 360 | 430 | |||||||||||||||
Other Income | 3,494 | 2,637 | 2,880 | 2,025 | 2,267 | |||||||||||||||
Total Non-interest Income | 44,720 | 47,767 | 46,625 | 47,473 | 40,533 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Salaries & Benefits | 46,826 | 48,282 | 49,423 | 52,603 | 48,390 | |||||||||||||||
Deferred Loan Origination Costs | (4,384 | ) | (3,772 | ) | (3,797 | ) | (3,019 | ) | (3,709 | ) | ||||||||||
Total Compensation | 42,442 | 44,510 | 45,626 | 49,584 | 44,681 | |||||||||||||||
Occupancy and Equipment | 11,984 | 11,570 | 10,251 | 10,205 | 10,390 | |||||||||||||||
Legal and Other Professional Fees | 6,441 | 6,525 | 4,646 | 3,298 | 3,641 | |||||||||||||||
Depreciation – Equipment Leased to Others | 2,941 | 2,549 | 2,252 | 1,905 | 1,712 | |||||||||||||||
Amortization of Intangibles | 2,072 | 2,071 | 2,072 | 2,071 | 1,889 | |||||||||||||||
Marketing and Promotion | 1,963 | 1,741 | 1,729 | 1,669 | 1,755 | |||||||||||||||
Telephone, Postage and Supplies | 1,943 | 1,670 | 1,853 | 1,749 | 1,854 | |||||||||||||||
Insurance | 1,346 | 1,267 | 1,257 | 1,271 | 837 | |||||||||||||||
Data Processing | 1,222 | 1,303 | 1,272 | 1,227 | 1,267 | |||||||||||||||
Correspondent Bank Charges | 580 | 623 | 692 | 862 | 1,036 | |||||||||||||||
FDIC Insurance and Regulatory Assessments | 449 | 458 | 496 | 500 | 505 | |||||||||||||||
Client Services Expenses | 242 | 318 | 272 | 327 | 337 | |||||||||||||||
Expenses on Other Real Estate Owned | — | — | 214 | 134 | — | |||||||||||||||
Contribution to Greater Bay Bancorp Foundation | — | — | — | 900 | — | |||||||||||||||
Other Expenses | 4,400 | 3,654 | 3,987 | 3,886 | 3,711 | |||||||||||||||
78,025 | 78,259 | 76,619 | 79,588 | 73,615 | ||||||||||||||||
Dividends Paid on Preferred Stock of Real Estate Investment Trust Subsidiaries | 456 | 456 | 456 | 456 | 464 | |||||||||||||||
Total Operating Expenses | 78,481 | 78,715 | 77,075 | 80,044 | 74,079 | |||||||||||||||
Income Before Provision for Income Taxes | 34,129 | 38,011 | 39,432 | 40,800 | 34,676 | |||||||||||||||
Provision for Income Taxes | 13,050 | 15,556 | 14,899 | 15,948 | 13,256 | |||||||||||||||
Net Income | $ | 21,079 | $ | 22,455 | $ | 24,533 | $ | 24,852 | $ | 21,420 | ||||||||||
Greater Bay Bancorp Reports Fourth Quarter and Year End 2004 Results
February 1, 2005
Page 10 of 13
GREATER BAY BANCORP
DECEMBER 31, 2004 - FINANCIAL SUMMARY (UNAUDITED)
($ in 000’s)
SELECTED CONSOLIDATED OPERATING DATA FOR THE TWELVE MONTH PERIODS: | ||||||||
Dec 31 2004 | Dec 31 2003 | |||||||
Interest Income | $ | 376,499 | $ | 407,719 | ||||
Interest Expense | 90,876 | 109,838 | ||||||
Net Interest Income Before Provision for Credit Losses | 285,623 | 297,881 | ||||||
Provision for Credit Losses | 5,521 | 28,195 | ||||||
Net Interest Income After Provision for Credit Losses | 280,102 | 269,686 | ||||||
Non-interest Income: | ||||||||
Insurance Commissions and Fees | 130,500 | 117,508 | ||||||
Rental Revenue on Operating Leases | 11,549 | 5,582 | ||||||
Service Charges and Other Fees | 10,457 | 11,372 | ||||||
Gains on Sale of Securities, net | 8,370 | 8,759 | ||||||
Loan and International Banking Fees | 7,045 | 9,392 | ||||||
Trust Fees | 3,838 | 3,314 | ||||||
Gains on Sale of Loans | 2,481 | 4,458 | ||||||
ATM Network Revenue | 1,309 | 1,773 | ||||||
Other Income | 11,036 | 9,384 | ||||||
Total Non-interest Income | 186,585 | 171,542 | ||||||
Operating Expenses: | ||||||||
Salaries & Benefits | 197,134 | 189,626 | ||||||
Deferred Loan Origination Costs | (14,972 | ) | (14,203 | ) | ||||
Total Compensation | 182,162 | 175,423 | ||||||
Occupancy and Equipment | 44,010 | 40,898 | ||||||
Legal and Other Professional Fees | 20,910 | 16,594 | ||||||
Depreciation - Equipment Leased to Others | 9,647 | 4,615 | ||||||
Amortization of Intangibles | 8,286 | 7,180 | ||||||
Telephone, Postage and Supplies | 7,215 | 7,245 | ||||||
Marketing and Promotion | 7,102 | 6,120 | ||||||
Insurance | 5,141 | 4,487 | ||||||
Data Processing | 5,024 | 5,356 | ||||||
Correspondent Bank Charges | 2,757 | 4,519 | ||||||
FDIC Insurance and Regulatory Assessments | 1,903 | 2,073 | ||||||
Client Services Expenses | 1,159 | 1,293 | ||||||
Contribution to Greater Bay Bancorp Foundation | 900 | — | ||||||
Expenses on Other Real Estate Owned | 348 | 1,065 | ||||||
Other Expenses | 15,927 | 13,516 | ||||||
312,491 | 290,384 | |||||||
Dividends Paid on Preferred Stock of Real Estate Investment Trust Subsidiaries | 1,824 | 1,824 | ||||||
Total Operating Expenses | 314,315 | 292,208 | ||||||
Income Before Provision for Income Taxes | 152,372 | 149,020 | ||||||
Provision for Income Taxes | 59,453 | 57,017 | ||||||
Net Income | $ | 92,919 | $ | 92,003 | ||||
Greater Bay Bancorp Reports Fourth Quarter and Year End 2004 Results
February 1, 2005
Page 11 of 13
GREATER BAY BANCORP
DECEMBER 31, 2004 - FINANCIAL SUMMARY (UNAUDITED)
($ in 000’s, except share and per share data)
SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION RATIOS: | ||||||||||||||||||||
Dec 31 2004 | Sept 30 2004 | Jun 30 2004 | Mar 31 2004 | Dec 31 2003 | ||||||||||||||||
FINANCIAL RATIOS: | ||||||||||||||||||||
Loan to Deposit Ratio | 87.61 | % | 86.03 | % | 83.72 | % | 85.62 | % | 85.41 | % | ||||||||||
Ratio of Allowance for Loan and Lease Losses to: (1) | ||||||||||||||||||||
Average Loans | 2.41 | % | 2.54 | % | 2.60 | % | 2.63 | % | 2.73 | % | ||||||||||
End of Period Loans | 2.39 | % | 2.53 | % | 2.60 | % | 2.66 | % | 2.73 | % | ||||||||||
Total Nonaccrual Loans | 245.97 | % | 193.15 | % | 274.79 | % | 246.47 | % | 201.76 | % | ||||||||||
Ratio of Provision for Loan and Lease Losses to Average Loans, annualized | 0.02 | % | 0.12 | % | 0.18 | % | 0.18 | % | 0.61 | % | ||||||||||
Total Nonaccrual Loans to Total Loans | 0.98 | % | 1.31 | % | 0.95 | % | 1.08 | % | 1.36 | % | ||||||||||
Total Nonperforming Assets to Total Assets | 0.64 | % | 0.83 | % | 0.55 | % | 0.64 | % | 0.81 | % | ||||||||||
Ratio of Quarterly Net Charge-offs to Average Loans, annualized | 0.41 | % | 0.32 | % | 0.36 | % | 0.50 | % | 0.81 | % | ||||||||||
Ratio of YTD Net Charge-offs to YTD Average Loans | 0.40 | % | 0.39 | % | 0.43 | % | 0.50 | % | 0.67 | % | ||||||||||
Loan Growth, current quarter to prior year quarter | -1.28 | % | -2.86 | % | -5.62 | % | -6.00 | % | -5.29 | % | ||||||||||
Loan Growth, current quarter to prior quarter, annualized | 0.91 | % | 2.39 | % | 0.62 | % | -9.01 | % | -5.49 | % | ||||||||||
Loan Growth, YTD | -1.28 | % | -2.01 | % | -4.20 | % | -9.01 | % | -5.29 | % | ||||||||||
Core Deposit Growth, current quarter to prior year quarter (2) | 5.56 | % | 7.10 | % | 10.32 | % | 6.20 | % | 3.09 | % | ||||||||||
Core Deposit Growth, current quarter to prior quarter, annualized (2) | -6.06 | % | -9.79 | % | 22.70 | % | 16.20 | % | -0.35 | % | ||||||||||
Core Deposit Growth, YTD (2) | 5.56 | % | 9.61 | % | 19.91 | % | 16.20 | % | 3.09 | % | ||||||||||
Deposit Growth, current quarter to prior year quarter | -3.75 | % | -4.47 | % | -4.35 | % | -6.16 | % | 0.77 | % | ||||||||||
Deposit Growth, current quarter to prior quarter, annualized | -6.28 | % | -8.35 | % | 9.74 | % | -9.93 | % | -9.21 | % | ||||||||||
Deposit Growth, YTD | -3.75 | % | -2.94 | % | -0.22 | % | -9.93 | % | 0.77 | % | ||||||||||
Revenue Growth, current quarter to prior year quarter | -2.53 | % | 1.22 | % | 2.05 | % | 1.58 | % | -3.12 | % | ||||||||||
Revenue Growth, current quarter to prior quarter, annualized | -17.56 | % | -1.59 | % | -14.20 | % | 24.63 | % | -2.92 | % | ||||||||||
Net Interest Income Growth, current quarter to prior year quarter | -9.46 | % | -3.33 | % | -2.60 | % | -1.05 | % | -7.16 | % | ||||||||||
Net Interest Income Growth, current quarter to prior quarter, annualized | -12.25 | % | -8.94 | % | -18.62 | % | 0.80 | % | 13.83 | % | ||||||||||
Average Earning Assets to Average Total Assets | 87.62 | % | 87.96 | % | 88.25 | % | 88.99 | % | 89.53 | % | ||||||||||
Average Earning Assets to Average Interest-Bearing Liabilities | 124.05 | % | 121.62 | % | 120.06 | % | 121.49 | % | 120.46 | % | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Tier 1 Leverage ratio | 10.67 | % | 10.18 | % | 9.83 | % | 9.64 | % | 9.98 | % | ||||||||||
Tier 1 Risk-Based Capital ratio | 12.98 | % | 12.98 | % | 12.72 | % | 12.58 | % | 12.87 | % | ||||||||||
Total Risk-Based Capital ratio | 14.24 | % | 14.24 | % | 13.98 | % | 13.84 | % | 14.13 | % | ||||||||||
Total Equity to Assets ratio | 10.99 | % | 10.40 | % | 9.39 | % | 9.63 | % | 9.88 | % | ||||||||||
Risk Weighted Assets | $ | 5,602,439 | $ | 5,651,203 | $ | 5,715,605 | $ | 5,604,682 | $ | 5,793,334 | ||||||||||
Common Book Value Per Common Share | $ | 12.89 | $ | 12.73 | $ | 12.18 | $ | 12.57 | $ | 12.54 | ||||||||||
Total Common Shares Outstanding | 51,150,167 | 50,907,052 | 51,177,202 | 51,238,680 | 52,529,850 | |||||||||||||||
NON-GAAP RATIOS (3): | ||||||||||||||||||||
Tangible Total Equity (4) to Tangible Assets (5) | 7.64 | % | 7.55 | % | 6.67 | % | 6.90 | % | 7.12 | % | ||||||||||
Tangible Common Book Value Per Common Share (6) | $ | 7.97 | $ | 8.42 | $ | 7.84 | $ | 8.20 | $ | 8.25 | ||||||||||
(1) As of December 31, 2004, we reclassified the reserve for unfunded credit commitments from the allowance for loan losses to other liabilities. Amounts presented prior to the fourth quarter of 2004 have been reclassified to conform with the current presentation. |
| |||||||||||||||||||
(2) Core Deposits includes total deposits, less institutional time deposits. |
| |||||||||||||||||||
(3) Management believes that these ratios are meaningful measures because they reflect the equity deployed in the Company’s businesses. The following table sets forth the reconciliation of Common Shareholders’ Equity to Tangible Total Equity and Total Assets to Tangible Assets: |
| |||||||||||||||||||
Common Shareholders’ Equity | $ | 659,250 | $ | 648,022 | $ | 623,116 | $ | 644,109 | $ | 658,765 | ||||||||||
Convertible Preferred Stock | 103,816 | 91,917 | 91,924 | 92,050 | 91,752 | |||||||||||||||
Total Equity | 763,066 | 739,939 | 715,040 | 736,159 | 750,517 | |||||||||||||||
Less: Goodwill and Other Intangible Assets | (251,660 | ) | (219,627 | ) | (221,861 | ) | (224,095 | ) | (225,229 | ) | ||||||||||
Tangible Total Equity (4) | $ | 511,406 | $ | 520,312 | $ | 493,179 | $ | 512,064 | $ | 525,288 | ||||||||||
Total Assets | $ | 6,942,821 | $ | 7,111,493 | $ | 7,614,735 | $ | 7,642,405 | $ | 7,599,962 | ||||||||||
Less: Goodwill and Other Intangible Assets | (251,660 | ) | (219,627 | ) | (221,861 | ) | (224,095 | ) | (225,229 | ) | ||||||||||
Tangible Assets (5) | $ | 6,691,161 | $ | 6,891,866 | $ | 7,392,874 | $ | 7,418,310 | $ | 7,374,733 | ||||||||||
(4) | Tangible Total Equity includes Common Shareholders’ Equity and Convertible Preferred Stock, less Goodwill and Other Intangible Assets. |
(5) | Tangible Assets includes Total Assets, less Goodwill and Other Intangible Assets. |
(6) | Computed by dividing Common Shareholders’ Equity, less Goodwill and Other Intangible Assets by Total Common Shares outstanding. |
.Greater Bay Bancorp Reports Fourth Quarter and Year End 2004 Results
February 1, 2005
Page 12 of 13
GREATER BAY BANCORP
DECEMBER 31, 2004 - FINANCIAL SUMMARY (UNAUDITED)
($ in 000’s, except share and per share data)
SELECTED QUARTERLY CONSOLIDATED OPERATING RATIOS:
Fourth Quarter 2004 | Third Quarter 2004 | Second Quarter 2004 | First Quarter 2004 | Fourth Quarter 2003 | ||||||||||||||||
GAAP EPS | ||||||||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||
Basic (1) | $ | 0.38 | $ | 0.41 | $ | 0.45 | $ | 0.44 | $ | 0.38 | ||||||||||
Fully Diluted (1) | $ | 0.33 | $ | 0.36 | $ | 0.39 | $ | 0.42 | $ | 0.37 | ||||||||||
Weighted Average Common Shares Outstanding (1) | 51,060,000 | 51,046,000 | 51,108,000 | 52,654,000 | 52,363,000 | |||||||||||||||
Weighted Average Common & Common Equivalent Shares Outstanding (1) | 58,924,000 | 58,776,000 | 58,929,000 | 54,835,000 | 53,976,000 | |||||||||||||||
GAAP Ratios | ||||||||||||||||||||
Return on Quarterly Average Assets, annualized | 1.18 | % | 1.20 | % | 1.29 | % | 1.32 | % | 1.10 | % | ||||||||||
Return on Quarterly Average Common Shareholders’ Equity, annualized | 12.69 | % | 13.90 | % | 15.46 | % | 14.82 | % | 13.05 | % | ||||||||||
Return on Quarterly Average Total Equity, annualized | 11.14 | % | 12.16 | % | 13.51 | % | 13.04 | % | 11.56 | % | ||||||||||
Net Interest Margin - Average Earning Assets (2) | 4.36 | % | 4.27 | % | 4.29 | % | 4.51 | % | 4.33 | % | ||||||||||
Operating Expense Ratio (3) | 4.41 | % | 4.21 | % | 4.06 | % | 4.26 | % | 3.82 | % | ||||||||||
Efficiency Ratio (4) | 69.56 | % | 66.69 | % | 65.04 | % | 65.16 | % | 64.00 | % | ||||||||||
Total Operating Expenses | $ | 78,481 | $ | 78,715 | $ | 77,075 | $ | 80,044 | $ | 74,079 | ||||||||||
Total Revenue | $ | 112,823 | $ | 118,034 | $ | 118,507 | $ | 122,844 | $ | 115,755 | ||||||||||
NON-GAAP Ratios | ||||||||||||||||||||
Efficiency Ratio (Excluding the operating results of ABD) (5) | 60.80 | % | 60.26 | % | 57.24 | % | 59.00 | % | 54.11 | % | ||||||||||
ABD Operating Expenses | $ | 28,300 | $ | 27,857 | $ | 28,268 | $ | 28,139 | $ | 26,761 | ||||||||||
ABD Revenue | $ | 30,286 | $ | 33,643 | $ | 33,245 | $ | 34,870 | $ | 28,301 |
(1) | The following table provides detailed components included in the calculation of the Company’s basic and fully diluted earnings per common share and is presented to provide investors with information to enable them to better understand the reported EPS calculations. The table also shows the effect of the adoption of Emerging Issues Task Force (EITF) Issue 04-8, “The Effect of Contingently Convertible Debt on Diluted Earnings per Share”, on the current and prior periods. The Company’s outstanding convertible preferred stock was antidilutive for all periods presented. |
Q4 2004 | Q3 2004 | Q2 2004 | Q1 2004 | Q4 2003 | ||||||||||||||||||
GAAP EPS as reported | ||||||||||||||||||||||
Net Income as reported | $ | 21,079 | $ | 22,455 | $ | 24,533 | $ | 24,852 | $ | 21,420 | ||||||||||||
Less: Dividends on convertible preferred stock | (1,653 | ) | (1,653 | ) | (1,653 | ) | (1,653 | ) | (1,479 | ) | ||||||||||||
(A) | Net Income available to common shareholders | $ | 19,426 | $ | 20,802 | $ | 22,880 | $ | 23,199 | $ | 19,941 | |||||||||||
Add: CODES interest, net of taxes | 190 | 202 | 176 | 17 | 2 | |||||||||||||||||
(B) | Net Income available to common shareholders including CODES | $ | 19,616 | $ | 21,004 | $ | 23,056 | $ | 23,216 | $ | 19,943 | |||||||||||
(C) | Weighted Average Common Shares Outstanding | 51,060,000 | 51,046,000 | 51,108,000 | 52,654,000 | 52,363,000 | ||||||||||||||||
Common Stock Equivalents-Stock Options | 1,548,000 | 1,414,000 | 1,505,000 | 1,612,000 | 1,598,000 | |||||||||||||||||
CODES due 2024 on if-converted basis | 6,301,000 | 6,301,000 | 6,301,000 | 554,000 | — | |||||||||||||||||
CODES due 2022 on if-converted basis | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | |||||||||||||||||
(D) | Total Weighted Average Common & Common Equivalent Shares Outstanding | 58,924,000 | 58,776,000 | 58,929,000 | 54,835,000 | 53,976,000 | ||||||||||||||||
(A)/(C) | Earnings Per Common Share - Basic | $ | 0.38 | $ | 0.41 | $ | 0.45 | $ | 0.44 | $ | 0.38 | |||||||||||
(B)/(D) | Earnings Per Common Share - Fully Diluted | $ | 0.33 | $ | 0.36 | $ | 0.39 | $ | 0.42 | $ | 0.37 | |||||||||||
Fully Diluted EPS Excluding Impact of New Accounting Pronouncement (EITF 04-8) | ||||||||||||||||||||||
Net Income as reported | $ | 21,079 | $ | 22,455 | $ | 24,533 | $ | 24,852 | $ | 21,420 | ||||||||||||
Less: Dividends on convertible preferred stock | (1,653 | ) | (1,653 | ) | (1,653 | ) | (1,653 | ) | (1,479 | ) | ||||||||||||
(E) | Net Income available to common shareholders | $ | 19,426 | $ | 20,802 | $ | 22,880 | $ | 23,199 | $ | 19,941 | |||||||||||
Weighted Average Common Shares Outstanding | 51,060,000 | 51,046,000 | 51,108,000 | 52,654,000 | 52,363,000 | |||||||||||||||||
Common Stock Equivalents-Stock Options | 1,548,000 | 1,414,000 | 1,505,000 | 1,612,000 | 1,598,000 | |||||||||||||||||
(F) | Weighted Average Common & Common Equivalent Shares Outstanding | 52,608,000 | 52,460,000 | 52,613,000 | 54,266,000 | 53,961,000 | ||||||||||||||||
(E)/(F) | Earnings Per Common Share - Fully Diluted excluding the impact of EITF 04-8 | $ | 0.37 | $ | 0.40 | $ | 0.43 | $ | 0.43 | $ | 0.37 | |||||||||||
Reconciliation: | ||||||||||||||||||||||
Earnings Per Common Share - Fully Diluted as reported | $ | 0.33 | $ | 0.36 | $ | 0.39 | $ | 0.42 | $ | 0.37 | ||||||||||||
Earnings Per Common Share - Fully Diluted excluding the impact of EITF 04-8 | $ | 0.37 | $ | 0.40 | $ | 0.43 | $ | 0.43 | $ | 0.37 | ||||||||||||
Difference | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | 0.00 | ||||||||
(2) | Net interest income for the period, annualized and divided by average quarterly interest earning assets. |
(3) | Total operating expenses for the period, annualized and divided by average quarterly assets. |
(4) | Total operating expenses divided by total revenue (the sum of net interest income and non-interest income). |
(5) | Total operating expenses less ABD operating expenses divided by total revenue less ABD revenue. |
Greater Bay Bancorp Reports Fourth Quarter and Year End 2004 Results
February 1, 2005
Page 13 of 13
GREATER BAY BANCORP
DECEMBER 31, 2004 - FINANCIAL SUMMARY (UNAUDITED)
($ in 000’s, except share and per share data)
SELECTED CONSOLIDATED OPERATING RATIOS FOR THE TWELVE MONTH PERIODS: |
| |||||||
YTD Dec 31 2004 | YTD Dec 31 2003 | |||||||
GAAP EPS | ||||||||
Earnings Per Common Share | ||||||||
Basic (1) | $ | 1.68 | $ | 1.65 | ||||
Fully Diluted (1) | $ | 1.50 | $ | 1.62 | ||||
Weighted Average Common Shares Outstanding (1) | 51,468,000 | 52,040,000 | ||||||
Weighted Average Common & Common Equivalent Shares Outstanding (1) | 57,881,000 | 53,008,000 | ||||||
GAAP Ratios | ||||||||
Return on Average Yearly Assets, annualized | 1.25 | % | 1.16 | % | ||||
Return on Average Yearly Common Shareholders’ Equity, annualized | 14.21 | % | 14.52 | % | ||||
Return on Average Yearly Total Equity, annualized | 12.45 | % | 12.88 | % | ||||
Net Interest Margin - Average Earning Assets (2) | 4.36 | % | 4.20 | % | ||||
Operating Expense Ratio (3) | 4.23 | % | 3.69 | % | ||||
Efficiency Ratio (4) | 66.56 | % | 62.25 | % | ||||
Total Operating Expenses | $ | 314,315 | $ | 292,208 | ||||
Total Revenue | $ | 472,208 | $ | 469,423 | ||||
NON-GAAP Ratios | ||||||||
Efficiency Ratio (Excluding the operating results of ABD) (5) | 59.31 | % | 55.08 | % | ||||
ABD Operating Expenses | $ | 112,564 | $ | 99,049 | ||||
ABD Revenue | $ | 132,044 | $ | 118,745 |
(1) | The following table provides detailed components included in the calculation of the Company's basic and fully diluted earnings per common share and is presented to provide investors with information to enable them to better understand the reported EPS calculations. The table also shows the effect of the adoption of Emerging Issues Task Force (EITF) Issue 04-8, “The Effect of Contingently Convertible Debt on Diluted Earnings per Share”, on the current and prior periods. The Company's outstanding convertible preferred stock was antidilutive for all periods presented. |
2004 | 2003 | |||||||||
GAAP EPS as reported | ||||||||||
Net Income as reported | $ | 92,919 | $ | 92,003 | ||||||
Less: Dividends on convertible preferred stock | (6,613 | ) | (5,913 | ) | ||||||
(A) | Net Income available to common shareholders | $ | 86,306 | $ | 86,090 | |||||
Add: CODES interest, net of taxes | 584 | 9 | ||||||||
(B) | Net Income available to common shareholders including CODES | $ | 86,890 | $ | 86,099 | |||||
(C) | Weighted Average Common Shares Outstanding | 51,468,000 | 52,040,000 | |||||||
Common Stock Equivalents-Stock Options | 1,526,000 | 953,000 | ||||||||
CODES due 2024 on if-converted basis | 4,872,000 | — | ||||||||
CODES due 2022 on if-converted basis | 15,000 | 15,000 | ||||||||
(D) | Total Weighted Average Common & Common Equivalent Shares Outstanding | 57,881,000 | 53,008,000 | |||||||
(A)/(C) | Earnings Per Common Share - Basic | $ | 1.68 | $ | 1.65 | |||||
(B)/(D) | Earnings Per Common Share - Fully Diluted | $ | 1.50 | $ | 1.62 | |||||
Fully Diluted EPS Excluding Impact of New Accounting Pronouncement (EITF 04-8) | ||||||||||
Net Income as reported | $ | 92,919 | $ | 92,003 | ||||||
Less: Dividends on convertible preferred stock | (6,613 | ) | (5,913 | ) | ||||||
(E) | Net Income available to common shareholders | $ | 86,306 | $ | 86,090 | |||||
Weighted Average Common Shares Outstanding | 51,468,000 | 52,040,000 | ||||||||
Common Stock Equivalents-Stock Options | 1,526,000 | 953,000 | ||||||||
(F) | Weighted Average Common & Common Equivalent Shares Outstanding | 52,994,000 | 52,993,000 | |||||||
(E)/(F) | Earnings Per Common Share - Fully Diluted excluding the impact of EITF 04-8 | $ | 1.63 | $ | 1.62 | |||||
Reconciliation: | ||||||||||
Earnings Per Common Share - Fully Diluted as reported | $ | 1.50 | $ | 1.62 | ||||||
Earnings Per Common Share - Fully Diluted excluding the impact of EITF 04-8 | $ | 1.63 | $ | 1.62 | ||||||
Difference | $ | (0.13 | ) | $ | (0.00 | ) | ||||
(2) | Net interest income for the period, annualized and divided by YTD average interest earning assets. |
(3) | Total operating expenses for the period, annualized and divided by YTD average assets. |
(4) | Total operating expenses divided by total revenue (the sum of net interest income and non-interest income). |
(5) | Total operating expenses less ABD operating expenses divided by total revenue less ABD revenue. |