Exhibit 99.1
For Information Contact | ||
At Greater Bay Bancorp: | At Silverman Heller Associates: | |
Byron A. Scordelis, President and CEO | Philip Bourdillon/Gene Heller | |
(650) 838-6101 | (310) 208-2550 | |
James S. Westfall, EVP and CFO | ||
(650) 838-6108 |
FOR IMMEDIATE RELEASE
GREATER BAY BANCORP ANNOUNCES REPAYMENT OF LARGE LOANS,
REVISION OF ITS PREVIOUSLY DISCLOSED 2005 FINANCIAL RESULTS
AND NOTICE OF LATE FILING OF ITS FORM 10-K
EAST PALO ALTO, Calif., March 17, 2006 – For the period ended December 31, 2005, Greater Bay Bancorp (Nasdaq:GBBK), a $7.1 billion in assets financial services holding company, previously reported non-performing assets of $68.2 million which included a single borrower relationship totaling $33.3 million. Subsequent to quarter-end and as disclosed in its earnings release dated February 1, 2006, the Company received a payment of $4.3 million which was fully applied to principal owed.
Since that disclosure, the Company has received an additional principal payment of $32.5 million which retired this borrower’s indebtedness to the Company. In an unrelated transaction, the Company also recently received full repayment of a large performing loan from another client which had the effect of reducing the pool analysis component of the Company’s loan loss reserve.
Although received after the quarter’s end, the payoffs of these loans were both determined to represent subsequent events which provided additional evidence concerning the realizability of these loans as of December 31, 2005. Accordingly, the carrying value of these loans as of December 31, 2005 has been adjusted to reflect their payoff value. The effect of this adjustment is as follows:
• | Net income for the quarter ended December 31, 2005 has been adjusted upward from $22.8 million to $27.5 million, or a revised level of $0.48 per diluted common share ($0.51 per basic common share), from the previously announced $0.39 per diluted common share (or $0.42 per basic common share). |
• | Net income for the year ended December 31, 2005 has been adjusted upward from $92.6 million to $97.2 million, or a revised level of $1.64 per diluted common share ($1.77 per basic common share), from the previously announced $1.55 per diluted common share ($1.68 per basic common share). |
Greater Bay Bancorp Announces Repayment of Large Loans, Revision of its
Previously Disclosed 2005 Financial Results and Notice of Late Filing of its Form 10-K
March 17, 2006
Page 2 of 9
• | The provision for credit losses for the fourth quarter of 2005 has been adjusted downward from a negative $2.6 million to a revised level of a negative $10.5 million. For the year ended December 31, 2005, the resulting revised provision level is a negative $13.3 million, rather than the previously announced negative $5.4 million. |
• | The reported allowance for loan and lease losses as of December 31, 2005 has been adjusted downward from the previously announced $86.6 million to a revised level of $82.2 million. |
• | Net charge-offs for the fourth quarter of 2005 have been adjusted downward from the previously reported level of $4.7 million (or 0.40% of average loans, annualized) to a revised level of $1.2 million (or 0.10% of average loans annualized). For the year ended December 31, 2005, the resulting revised net charge-off level is $11.3 million (or 0.24% of average loans), rather than the previously announced $14.8 million (or 0.32% of average loans). |
• | Non-performing assets have been correspondingly revised upward by an amount equal to the net charge-off adjustment from an originally reported $68.2 million to a revised level of $71.7 million. |
The impact of the combined payments totaling $36.8 million on the previously referenced non-performing relationship will be reflected as a reduction in the Company’s non-performing assets for the period ending March 31, 2006.
“Although necessitating a revision to our previously released financial results, we are clearly pleased with the outcome of these transactional matters,” stated Byron A. Scordelis, President and Chief Executive Officer of Greater Bay Bancorp. “The single non-performing relationship constituted more than fifty percent of that category total at year-end. While unanticipated with respect to its timing, the payoff of that obligation represents the culmination of an extended and diligent collection effort. We believe that the successful resolution of these loans provides enhanced clarity with respect to our credit metrics, our core credit disciplines, and the virtue of our relationship banking model,” he concluded.
In a separate matter, the Company today filed Form 12b-25 to extend the time for the filing of its Form 10-K for the fiscal year ended December 31, 2005. The reason for the extension is to allow additional time to complete the Company’s final validation of its consolidated statements of cash flows and to finalize management’s assessment of the Company’s internal control over financial reporting. Management expects to file the 2005 Form 10-K on or before March 31, 2006.
“While our books for the year remain open during this extended period, our present expectation is that our focus will be upon items related to our statements of cash flows. This review is specifically directed to categorizations within this statement. We do not currently anticipate any impact upon our consolidated statements of operations, balance sheets, or statements of shareholders’ equity for any period,” commented James S. Westfall, Executive Vice President and Chief Financial Officer.
Greater Bay Bancorp Announces Repayment of Large Loans, Revision of its
Previously Disclosed 2005 Financial Results and Notice of Late Filing of its Form 10-K
March 17, 2006
Page 3 of 9
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 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 completion of the Company’s evaluation of its cash flow statements and internal control environment, completion of its 2005 Annual Report on Form 10-K by March 31 2006 and its expectation that such evaluation will not impact its statements of operations, balance sheets or statements of shareholders’ equity. 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, the timely completion of the evaluations describe above. 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.
[Revised Financial Tables Follow]
# # #
Greater Bay Announces Revision to its Previously Disclosed 2005 Financial Results and Notice of Late Filing of its Form 10-K
March 17, 2006
Page 4 of 9
GREATER BAY BANCORP
DECEMBER 31, 2005 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars and shares in 000’s, except per share data)
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
Fourth Quarter 2005 | Third Quarter 2005 | Second Quarter 2005 | First Quarter 2005 | Fourth Quarter 2004 | ||||||||||||||||
Interest income | $ | 102,225 | $ | 100,710 | $ | 96,050 | $ | 91,798 | $ | 92,576 | ||||||||||
Interest expense | 34,478 | 32,714 | 30,625 | 25,756 | 24,473 | |||||||||||||||
Net interest income before provision for credit losses | 67,747 | 67,996 | 65,425 | 66,042 | 68,103 | |||||||||||||||
Provision for credit losses | (10,491 | ) | (3,352 | ) | 2,252 | (1,678 | ) | 213 | ||||||||||||
Net interest income after provision for credit losses | 78,238 | 71,348 | 63,173 | 67,720 | 67,890 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Insurance commissions and fees | 37,071 | 39,974 | 39,223 | 38,122 | 29,727 | |||||||||||||||
Rental revenues on operating leases | 4,906 | 4,901 | 4,463 | 4,032 | 3,500 | |||||||||||||||
Service charges and other fees | 2,533 | 2,496 | 2,869 | 2,550 | 2,611 | |||||||||||||||
Loan and international banking fees | 1,919 | 1,663 | 2,113 | 2,013 | 1,094 | |||||||||||||||
Trust fees | 1,101 | 1,074 | 1,060 | 1,066 | 1,041 | |||||||||||||||
Gain on sale of loans | 172 | 100 | 111 | 95 | 1,315 | |||||||||||||||
Gain on sale of securities, net | — | 43 | 9 | 290 | 1,636 | |||||||||||||||
Other income | 5,307 | 4,238 | 4,393 | 2,025 | 3,796 | |||||||||||||||
Total non-interest income | 53,009 | 54,489 | 54,241 | 50,193 | 44,720 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Compensation and benefits | 51,455 | 50,745 | 48,172 | 50,285 | 42,442 | |||||||||||||||
Occupancy and equipment | 11,285 | 11,278 | 11,148 | 10,412 | 11,984 | |||||||||||||||
Legal costs and other professional | 5,295 | 4,671 | 3,198 | 4,851 | 6,441 | |||||||||||||||
Depreciation - equipment leased to others | 4,013 | 4,108 | 3,735 | 3,370 | 2,941 | |||||||||||||||
Amortization of intangibles | 1,835 | 1,886 | 2,072 | 2,083 | 2,072 | |||||||||||||||
Other expenses | 12,476 | 11,936 | 12,805 | 12,947 | 12,601 | |||||||||||||||
Total operating expenses | 86,359 | 84,624 | 81,130 | 83,948 | 78,481 | |||||||||||||||
Income before provision for income taxes | 44,888 | 41,213 | 36,284 | 33,965 | 34,129 | |||||||||||||||
Provision for income taxes | 17,433 | 15,626 | 13,609 | 12,455 | 13,050 | |||||||||||||||
Net income | $ | 27,455 | $ | 25,587 | $ | 22,675 | $ | 21,510 | $ | 21,079 | ||||||||||
EARNINGS PER SHARE DATA: | ||||||||||||||||||||
Earnings per common share (1) | ||||||||||||||||||||
Basic | $ | 0.51 | $ | 0.47 | $ | 0.41 | $ | 0.38 | $ | 0.38 | ||||||||||
Diluted | $ | 0.48 | $ | 0.44 | $ | 0.38 | $ | 0.34 | $ | 0.33 | ||||||||||
Weighted average common shares outstanding | 50,251 | 50,698 | 50,843 | 51,135 | 51,060 | |||||||||||||||
Weighted average common & common equivalent shares outstanding | 53,370 | 54,010 | 55,573 | 58,184 | 58,924 | |||||||||||||||
GAAP ratios | ||||||||||||||||||||
Return on quarterly average assets, annualized | 1.53 | % | 1.41 | % | 1.28 | % | 1.25 | % | 1.18 | % | ||||||||||
Return on quarterly average common shareholders’ equity, annualized | 16.25 | % | 15.13 | % | 13.68 | % | 13.03 | % | 12.69 | % | ||||||||||
Return on quarterly average total equity, annualized | 14.09 | % | 13.12 | % | 11.84 | % | 11.28 | % | 11.14 | % | ||||||||||
Net interest margin, annualized (2) | 4.37 | % | 4.35 | % | 4.27 | % | 4.44 | % | 4.36 | % | ||||||||||
Operating expense ratio, annualized (3) | 4.81 | % | 4.67 | % | 4.60 | % | 4.89 | % | 4.39 | % | ||||||||||
Efficiency ratio (4) | 71.52 | % | 69.09 | % | 67.80 | % | 72.22 | % | 69.56 | % | ||||||||||
NON-GAAP ratios | ||||||||||||||||||||
Efficiency ratio (excluding ABD) (5) | 62.70 | % | 60.12 | % | 60.79 | % | 68.86 | % | 60.80 | % | ||||||||||
(1) The following table provides the detailed calculation of basic and diluted earnings per common share. The Company’s outstanding convertible preferred stock was antidilutive for all periods presented. |
Net income as reported | $ | 27,455 | $ | 25,587 | $ | 22,675 | $ | 21,510 | $ | 21,079 | ||||||||||
Less: dividends on convertible preferred stock | (1,825 | ) | (1,834 | ) | (1,841 | ) | (1,840 | ) | (1,653 | ) | ||||||||||
(A) Net income available to common shareholders | 25,630 | 23,753 | 20,834 | 19,670 | 19,426 | |||||||||||||||
Add: CODES interest and other related income/(loss), net of taxes | (99 | ) | 76 | 111 | 179 | 190 | ||||||||||||||
(B) Net income available to common shareholders including CODES | $ | 25,531 | $ | 23,829 | $ | 20,945 | $ | 19,849 | $ | 19,616 | ||||||||||
(C) Weighted average common shares outstanding | 50,251 | 50,698 | 50,843 | 51,135 | 51,060 | |||||||||||||||
Weighted average common equivalent shares: | ||||||||||||||||||||
Stock options | 939 | 878 | 1,062 | 1,094 | 1,548 | |||||||||||||||
CODES due 2024 | 2,180 | 2,426 | 3,653 | 5,940 | 6,301 | |||||||||||||||
CODES due 2022 | — | 8 | 15 | 15 | 15 | |||||||||||||||
(D) Total weighted average common & common equivalent shares outstanding | 53,370 | 54,010 | 55,573 | 58,184 | 58,924 | |||||||||||||||
(A)/(C) Earnings per common share - basic | $ | 0.51 | $ | 0.47 | $ | 0.41 | $ | 0.38 | $ | 0.38 | ||||||||||
(B)/(D) Earnings per common share - diluted | $ | 0.48 | $ | 0.44 | $ | 0.38 | $ | 0.34 | $ | 0.33 |
(2) Net interest income for the period, annualized and divided by average quarterly interest earning assets. Non accrual loans are excluded from the average balances. | |||||||||||||||
(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, excluding provision for credit losses). | |||||||||||||||
(5) Total operating expenses less ABD operating expenses divided by total revenue less ABD revenue. The following table provides the information for calculating the efficiency ratio excluding ABD: | |||||||||||||||
Revenue (excluding ABD) | $ | 83,614 | $ | 81,796 | $ | 80,190 | $ | 77,744 | $ | 82,537 | |||||
Operating expenses (excluding ABD) | $ | 52,422 | $ | 49,174 | $ | 48,750 | $ | 53,535 | $ | 50,181 |
Greater Bay Announces Revision to its Previously Disclosed 2005 Financial Results and Notice of Late Filing of its Form 10-K
March 17, 2006
Page 5 of 9
GREATER BAY BANCORP
DECEMBER 31, 2005 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars and shares in 000’s, except per share data)
SELECTED CONSOLIDATED OPERATING DATA FOR THE TWELVE MONTH PERIODS:
12 Months Ended December 31, | ||||||||
2005 | 2004 | |||||||
Interest income | $ | 390,783 | $ | 376,499 | ||||
Interest expense | 123,573 | 90,876 | ||||||
Net interest income before provision for credit losses | 267,210 | 285,623 | ||||||
Provision for credit losses | (13,269 | ) | 5,521 | |||||
Net interest income after provision for credit losses | 280,479 | 280,102 | ||||||
Non-interest income: | ||||||||
Insurance commissions and fees | 154,390 | 130,500 | ||||||
Rental revenues on operating leases | 18,302 | 11,549 | ||||||
Service charges and other fees | 10,448 | 10,457 | ||||||
Loan and international banking fees | 7,708 | 7,045 | ||||||
Trust fees | 4,301 | 3,838 | ||||||
Gain on sale of loans | 478 | 2,481 | ||||||
Gain on sale of securities, net | 342 | 8,370 | ||||||
Other income | 15,963 | 12,345 | ||||||
Total non-interest income | 211,932 | 186,585 | ||||||
Operating expenses: | ||||||||
Compensation and benefits | 200,657 | 182,162 | ||||||
Occupancy and equipment | 44,123 | 44,010 | ||||||
Legal costs and other professional | 18,015 | 20,910 | ||||||
Depreciation - equipment leased to others | 15,226 | 9,647 | ||||||
Amortization of intangibles | 7,876 | 8,286 | ||||||
Other expenses | 50,164 | 49,300 | ||||||
Total operating expenses | 336,061 | 314,315 | ||||||
Income before provision for income taxes | 156,350 | 152,372 | ||||||
Provision for income taxes | 59,123 | 59,453 | ||||||
Net income | $ | 97,227 | $ | 92,919 | ||||
EARNINGS PER SHARE DATA: | ||||||||
Earnings per common share (1) | ||||||||
Basic | $ | 1.77 | $ | 1.68 | ||||
Diluted | $ | 1.64 | $ | 1.50 | ||||
Weighted average common shares outstanding | 50,730 | 51,468 | ||||||
Weighted average common & common equivalent shares outstanding | 55,058 | 57,881 | ||||||
GAAP ratios | ||||||||
Return on YTD average assets | 1.37 | % | 1.25 | % | ||||
Return on YTD average common shareholders’ equity | 14.54 | % | 14.21 | % | ||||
Return on YTD average total equity | 12.59 | % | 12.45 | % | ||||
Net interest margin (2) | 4.35 | % | 4.35 | % | ||||
Operating expense ratio (3) | 4.74 | % | 4.22 | % | ||||
Efficiency ratio (4) | 70.14 | % | 66.56 | % | ||||
NON-GAAP ratios | ||||||||
Efficiency ratio (excluding ABD) (5) | 63.05 | % | 59.31 | % | ||||
____________ (1) The following table provides the detailed calculation of basic and diluted earnings per common share. The Company’s outstanding convertible preferred stock was antidilutive for all periods presented. | ||||||||
Net income as reported | $ | 97,227 | $ | 92,919 | ||||
Less: dividends on convertible preferred stock | (7,340 | ) | (6,613 | ) | ||||
(A) Net income available to common shareholders | 89,887 | 86,306 | ||||||
Add: CODES interest and other related income, net of taxes | 267 | 584 | ||||||
(B) Net income available to common shareholders including CODES | $ | 90,154 | $ | 86,890 | ||||
(C) Weighted average common shares outstanding | 50,730 | 51,468 | ||||||
Weighted average common equivalent shares: | ||||||||
Stock options | 1,017 | 1,526 | ||||||
CODES due 2024 | 3,302 | 4,872 | ||||||
CODES due 2022 | 9 | 15 | ||||||
(D) Total weighted average common & common equivalent shares outstanding | 55,058 | 57,881 | ||||||
(A)/(C) Earnings per common share - basic | $ | 1.77 | $ | 1.68 | ||||
(B)/(D) Earnings per common share - diluted | $ | 1.64 | $ | 1.50 | ||||
(2) Net interest income for the period and divided by YTD average interest earning assets. Non accrual loans are excluded from the average balances. | ||||||||
(3) Total operating expenses for the period and divided by YTD average assets. | ||||||||
(4) Total operating expenses divided by total revenue (the sum of net interest income and non-interest income, excluding provision for credit losses). | ||||||||
(5) Total operating expenses less ABD operating expenses divided by total revenue less ABD revenue. The following table provides the information for calculating the efficiency ratio excluding ABD: | ||||||||
Revenue (excluding ABD) | $ | 323,344 | $ | 340,164 | ||||
Operating expenses (excluding ABD) | $ | 203,881 | $ | 201,751 |
Greater Bay Announces Revision to its Previously Disclosed 2005 Financial Results and Notice of Late Filing of its Form 10-K
March 17, 2006
Page 6 of 9
GREATER BAY BANCORP
DECEMBER 31, 2005 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA AND RATIOS:
Dec 31 2005 | Sept 30 2005 | Jun 30 2005 | Mar 31 2005 | Dec 31 2004 | ||||||||||||||||
Cash and Due From Banks | $ | 152,153 | $ | 153,284 | $ | 190,048 | $ | 213,806 | $ | 171,657 | ||||||||||
Fed Funds Sold | �� | 20,000 | 10,000 | — | — | |||||||||||||||
Securities | 1,493,584 | 1,487,935 | 1,583,662 | 1,592,120 | 1,602,268 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial (1) | 2,067,873 | 2,020,656 | 2,040,289 | 2,028,492 | 1,988,465 | |||||||||||||||
Term Real Estate – Commercial | 1,389,329 | 1,432,939 | 1,493,890 | 1,540,496 | 1,597,756 | |||||||||||||||
Total Commercial (1) | 3,457,202 | 3,453,595 | 3,534,179 | 3,568,988 | 3,586,221 | |||||||||||||||
Real Estate Construction and Land | 644,883 | 609,969 | 543,117 | 499,817 | 479,113 | |||||||||||||||
Residential Mortgage | 266,263 | 258,268 | 260,453 | 71,004 | 22,982 | |||||||||||||||
Real Estate Other | 263,164 | 261,969 | 277,847 | 250,977 | 268,755 | |||||||||||||||
Consumer and Other | 108,833 | 115,593 | 137,827 | 129,859 | 145,065 | |||||||||||||||
Deferred Fees and Discounts, Net | (12,376 | ) | (12,681 | ) | (12,939 | ) | (13,239 | ) | (13,902 | ) | ||||||||||
Total Loans, Net of Deferred Fees and Discounts (1) | 4,727,969 | 4,686,713 | 4,740,484 | 4,507,406 | 4,488,234 | |||||||||||||||
Allowance for Loan and Lease Losses | (82,159 | ) | (92,857 | ) | (98,487 | ) | (99,355 | ) | (107,517 | ) | ||||||||||
Total Loans, Net (1) | 4,645,810 | 4,593,856 | 4,641,997 | 4,408,051 | 4,380,717 | |||||||||||||||
Goodwill | 243,289 | 236,511 | 236,211 | 212,077 | 212,432 | |||||||||||||||
Other Intangible Assets | 49,741 | 51,739 | 53,785 | 36,986 | 39,228 | |||||||||||||||
Other Assets | 536,392 | 529,983 | 550,402 | 539,423 | 544,869 | |||||||||||||||
Total Assets (1) | $ | 7,120,969 | $ | 7,073,308 | $ | 7,266,105 | $ | 7,002,463 | $ | 6,951,171 | ||||||||||
Deposits: | ||||||||||||||||||||
Demand, Non-Interest Bearing | $ | 1,093,157 | $ | 1,066,536 | $ | 1,091,208 | $ | 1,065,004 | $ | 1,052,272 | ||||||||||
NOW, MMDA and Savings | 3,000,647 | 3,003,159 | 2,955,343 | 3,193,558 | 3,263,716 | |||||||||||||||
Time Deposits, $100,000 and Over | 741,682 | 750,406 | 696,740 | 602,432 | 647,531 | |||||||||||||||
Other Time Deposits | 223,053 | 195,315 | 136,008 | 134,749 | 139,320 | |||||||||||||||
Total Deposits | 5,058,539 | 5,015,416 | 4,879,299 | 4,995,743 | 5,102,839 | |||||||||||||||
Other Borrowings | 797,802 | 813,006 | 1,117,285 | 775,361 | 578,664 | |||||||||||||||
Subordinated Debt | 210,311 | 210,311 | 210,311 | 210,311 | 210,311 | |||||||||||||||
Other Liabilities (1) | 265,607 | 252,510 | 275,417 | 249,170 | 283,670 | |||||||||||||||
Total Liabilities (1) | 6,332,259 | 6,291,243 | 6,482,312 | 6,230,585 | 6,175,484 | |||||||||||||||
Preferred Stock of Real Estate Investment Trust Subsidiaries | 12,699 | 12,658 | 12,617 | 12,577 | 12,621 | |||||||||||||||
Convertible Preferred Stock | 103,387 | 102,706 | 103,366 | 103,569 | 103,816 | |||||||||||||||
Common Shareholders’ Equity | 672,624 | 666,701 | 667,810 | 655,732 | 659,250 | |||||||||||||||
Total Equity | 776,011 | 769,407 | 771,176 | 759,301 | 763,066 | |||||||||||||||
Total Liabilities and Total Equity (1) | $ | 7,120,969 | $ | 7,073,308 | $ | 7,266,105 | $ | 7,002,463 | $ | 6,951,171 | ||||||||||
RATIOS: | ||||||||||||||||||||
Loan Growth, current quarter to prior year quarter | 5.34 | % | 4.31 | % | 6.40 | % | 1.26 | % | -1.55 | % | ||||||||||
Loan Growth, current quarter to prior quarter, annualized | 3.49 | % | -4.50 | % | 20.74 | % | 1.73 | % | -0.43 | % | ||||||||||
Loan Growth, YTD | 5.34 | % | 5.91 | % | 11.33 | % | 1.73 | % | -1.55 | % | ||||||||||
Core Loan Growth, current quarter to prior year quarter (2) | 0.57 | % | -1.13 | % | 0.75 | % | -0.34 | % | -2.05 | % | ||||||||||
Core Loan Growth, current quarter to prior quarter, annualized (2) | 4.30 | % | -4.09 | % | 4.73 | % | -2.62 | % | -2.46 | % | ||||||||||
Core Loan Growth, YTD (2) | 0.57 | % | -0.68 | % | 1.06 | % | -2.62 | % | -2.05 | % | ||||||||||
Deposit Growth, current quarter to prior year quarter | -0.87 | % | -3.47 | % | -8.06 | % | -3.58 | % | -3.95 | % | ||||||||||
Deposit Growth, current quarter to prior quarter, annualized | 3.41 | % | 11.07 | % | -9.35 | % | -8.51 | % | -7.10 | % | ||||||||||
Deposit Growth, YTD | -0.87 | % | -2.29 | % | -8.83 | % | -8.51 | % | -3.95 | % | ||||||||||
Core Deposit Growth, current quarter to prior year quarter (3) | -5.03 | % | -6.45 | % | -9.21 | % | -0.04 | % | 5.33 | % | ||||||||||
Core Deposit Growth, current quarter to prior quarter, annualized (3) | -1.02 | % | 2.02 | % | -16.23 | % | -5.18 | % | -6.94 | % | ||||||||||
Core Deposit Growth, YTD (3) | -5.03 | % | -6.40 | % | -10.63 | % | -5.18 | % | 5.33 | % | ||||||||||
Revenue Growth, current quarter to prior year quarter | 7.03 | % | 3.77 | % | 0.98 | % | -5.38 | % | -2.53 | % | ||||||||||
Revenue Growth, current quarter to prior quarter, annualized | -5.60 | % | 9.35 | % | 11.84 | % | 12.26 | % | -17.56 | % | ||||||||||
Net Interest Income Growth, current quarter to prior year quarter | -0.52 | % | -3.23 | % | -8.98 | % | -12.38 | % | -9.46 | % | ||||||||||
Net Interest Income Growth, current quarter to prior quarter, annualized | -1.45 | % | 15.59 | % | -3.75 | % | -12.27 | % | -12.25 | % |
(1) | Amounts presented prior to the fourth quarter of 2005 have been reclassified to conform with the current presentation. |
(2) | Core loans calculated as total loans less purchased residential mortgage loans. |
(3) | Core deposits calculated as total deposits less institutional and brokered time deposits. |
Greater Bay Announces Revision to its Previously Disclosed 2005 Financial Results and Notice of Late Filing of its Form 10-K
March 17, 2006
Page 7 of 9
GREATER BAY BANCORP
DECEMBER 31, 2005 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
Three months ended | |||||||||||||||||||||||||||
December 31, 2005 | September 30, 2005 | December 31, 2004 | |||||||||||||||||||||||||
Average balance (1) | Interest | Average yield / rate | Average balance (1) | Interest | Average yield / rate | Average balance (1) | Interest | Average yield / rate | |||||||||||||||||||
INTEREST-EARNING ASSETS: | |||||||||||||||||||||||||||
Fed funds sold | $ | 74,740 | $ | 716 | 3.80 | % | $ | 45,033 | $ | 384 | 3.38 | % | $ | 103,806 | $ | 474 | 1.82 | % | |||||||||
Other short-term securities | 11,245 | 45 | 1.58 | % | 11,923 | 59 | 1.97 | % | 3,369 | 21 | 2.53 | % | |||||||||||||||
Securities: | |||||||||||||||||||||||||||
Taxable | 1,374,102 | 14,862 | 4.29 | % | 1,446,354 | 15,118 | 4.15 | % | 1,588,942 | 16,774 | 4.20 | % | |||||||||||||||
Tax-exempt (2) | 80,793 | 991 | 4.87 | % | 82,724 | 1,015 | 4.87 | % | 85,346 | 1,084 | 5.05 | % | |||||||||||||||
Loans (3) | 4,604,029 | 85,611 | 7.38 | % | 4,616,593 | 84,135 | 7.23 | % | 4,434,865 | 74,222 | 6.66 | % | |||||||||||||||
Total interest-earning assets | 6,144,909 | 102,225 | 6.60 | % | 6,202,625 | 100,710 | 6.44 | % | 6,216,328 | 92,576 | 5.92 | % | |||||||||||||||
Noninterest-earning assets | 975,192 | — | 985,764 | — | 852,410 | — | |||||||||||||||||||||
Total assets | $ | 7,120,101 | 102,225 | $ | 7,188,389 | 100,710 | $ | 7,068,738 | 92,576 | ||||||||||||||||||
INTEREST-BEARING LIABILITIES: | |||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||
MMDA, NOW and Savings | $ | 3,111,275 | 14,841 | 1.89 | % | $ | 3,004,193 | 13,042 | 1.72 | % | $ | 3,379,322 | 12,150 | 1.43 | % | ||||||||||||
Time deposits over $100,000 | 741,859 | 6,466 | 3.46 | % | 729,040 | 5,562 | 3.03 | % | 677,813 | 3,205 | 1.88 | % | |||||||||||||||
Other time deposits | 194,054 | 1,376 | 2.81 | % | 180,933 | 1,172 | 2.57 | % | 146,052 | 647 | 1.76 | % | |||||||||||||||
Total interest-bearing deposits | 4,047,188 | 22,682 | 2.22 | % | 3,914,167 | 19,776 | 2.00 | % | 4,203,188 | 16,001 | 1.51 | % | |||||||||||||||
Short-term borrowings | 171,801 | 1,870 | 4.32 | % | 350,989 | 3,290 | 3.72 | % | 192,902 | 1,696 | 3.50 | % | |||||||||||||||
CODES | 87,500 | 117 | 0.53 | % | 93,304 | 131 | 0.56 | % | 241,307 | 326 | 0.54 | % | |||||||||||||||
Subordinated debt | 210,311 | 4,504 | 8.50 | % | 210,311 | 4,446 | 8.39 | % | 210,311 | 4,250 | 8.04 | % | |||||||||||||||
Other long-term borrowings | 456,962 | 5,304 | 4.61 | % | 417,583 | 5,071 | 4.82 | % | 156,772 | 2,199 | 5.58 | % | |||||||||||||||
Total interest-bearing liabilities | 4,973,762 | 34,478 | 2.75 | % | 4,986,354 | 32,714 | 2.60 | % | 5,004,480 | 24,473 | 1.95 | % | |||||||||||||||
Noninterest-bearing deposits | 1,086,424 | 1,133,089 | 1,092,390 | ||||||||||||||||||||||||
Other noninterest-bearing liabilities | 274,391 | 282,410 | 206,357 | ||||||||||||||||||||||||
Preferred stock of real estate investment trust subsidiaries | 12,674 | 12,634 | 12,598 | ||||||||||||||||||||||||
Shareholders’ equity | 772,848 | 773,902 | 752,914 | ||||||||||||||||||||||||
Total shareholders’ equity and liabilities | $ | 7,120,101 | 34,478 | $ | 7,188,389 | 32,714 | $ | 7,068,738 | 24,473 | ||||||||||||||||||
Net interest income | $ | 67,747 | $ | 67,996 | $ | 68,103 | |||||||||||||||||||||
Net interest margin(4) | 4.37 | % | 4.35 | % | 4.36 | % | |||||||||||||||||||||
(1) | Nonaccrual loans are excluded from the average balance. |
(2) | Tax equivalent yields earned on the tax-exempt securities are 7.25%, 7.27% and 7.60% for the three months ended December 31,2005, September 30, 2005, and December 31, 2004, respectively, using the federal statutory tax rate of 35%. |
(3) | Amortization of deferred loan fees, net of the amortization of deferred costs, resulted in an increase (decrease) of interest income on loans by $580,000, $841,000, and $340,000 for the three months ended December 31, 2005, September 30, 2005 and December 31, 2004, respectively. |
(4) | Net interest margin during the period equals (a) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (b) average interest-earning assets for the period, annualized. |
Greater Bay Announces Revision to its Previously Disclosed 2005 Financial Results and Notice of Late Filing of its Form 10-K
March 17, 2006
Page 8 of 9
GREATER BAY BANCORP
DECEMBER 31, 2005 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
For the twelve months ended: | ||||||||||||||||||
December 31, 2005 | December 31, 2004 | |||||||||||||||||
Average balance (1) | Interest | Average yield / rate | Average balance (1) | Interest | Average yield / rate | |||||||||||||
INTEREST-EARNING ASSETS: | ||||||||||||||||||
Fed funds sold | $ | 47,555 | $ | 1,505 | 3.16 | % | $ | 95,626 | $ | 1,128 | 1.18 | % | ||||||
Other short-term securities | 8,906 | 155 | 1.74 | % | 3,014 | 58 | 1.92 | % | ||||||||||
Securities: | ||||||||||||||||||
Taxable | 1,453,524 | 62,042 | 4.27 | % | 1,935,532 | 81,142 | 4.19 | % | ||||||||||
Tax-exempt (2) | 83,201 | 3,983 | 4.79 | % | 88,115 | 4,435 | 5.03 | % | ||||||||||
Loans (3) | 4,545,371 | 323,097 | 7.11 | % | 4,441,083 | 289,736 | 6.52 | % | ||||||||||
Total interest-earning assets | 6,138,556 | 390,783 | 6.37 | % | 6,563,370 | 376,499 | 5.74 | % | ||||||||||
Noninterest-earning assets | 951,042 | — | 886,023 | — | ||||||||||||||
Total assets | $ | 7,089,599 | 390,783 | $ | 7,449,392 | 376,499 | ||||||||||||
INTEREST-BEARING LIABILITIES: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
MMDA, NOW and Savings | $ | 3,125,467 | 54,437 | 1.74 | % | $ | 3,251,418 | 38,413 | 1.18 | % | ||||||||
Time deposits over $100,000 | 682,213 | 19,640 | 2.88 | % | 434,897 | 7,417 | 1.71 | % | ||||||||||
Other time deposits | 162,352 | 4,001 | 2.46 | % | 530,316 | 7,635 | 1.44 | % | ||||||||||
Total interest-bearing deposits | 3,970,032 | 78,078 | 1.97 | % | 4,216,631 | 53,465 | 1.27 | % | ||||||||||
Short-term borrowings | 297,561 | 10,741 | 3.61 | % | 538,690 | 10,266 | 1.91 | % | ||||||||||
CODES | 137,585 | 749 | 0.54 | % | 210,990 | 1,566 | 0.74 | % | ||||||||||
Subordinated debt | 210,311 | 17,639 | 8.39 | % | 210,311 | 17,754 | 8.44 | % | ||||||||||
Other long-term borrowings | 333,454 | 16,367 | 4.91 | % | 206,133 | 7,825 | 3.80 | % | ||||||||||
Total interest-bearing liabilities | 4,948,943 | 123,573 | 2.50 | % | 5,382,755 | 90,876 | 1.69 | % | ||||||||||
Noninterest-bearing deposits | 1,088,927 | 1,058,253 | ||||||||||||||||
Other noninterest-bearing liabilities | 267,021 | 250,000 | ||||||||||||||||
Preferred stock of real estate investment trust subsidiaries | 12,618 | 12,273 | ||||||||||||||||
Shareholders’ equity | 772,089 | 746,111 | ||||||||||||||||
Total shareholders’ equity and liabilities | $ | 7,089,599 | 123,573 | $ | 7,449,392 | 90,876 | ||||||||||||
Net interest income | $ | 267,210 | $ | 285,623 | ||||||||||||||
Net interest margin(4) | 4.35 | % | 4.35 | % | ||||||||||||||
(1) | Nonaccrual loans are excluded from the average balance. |
(2) | Tax equivalent yields earned on the tax-exempt securities are 7.15% and 7.59% for the twelve months ended December 31,2005 and December 31, 2004, respectively, using the federal statutory tax rate of 35%. |
(3) | Amortization of deferred loan fees, net of the amortization of deferred costs, resulted in an increase (decrease) of interest income on loans by $1.4 million and $514,000 for the twelve months ended December 31, 2005 and December 31, 2004, respectively. |
(4) | Net interest margin during the period equals (a) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (b) average interest-earning assets for the period. |
Greater Bay Announces Revision to its Previously Disclosed 2005 Financial Results and Notice of Late Filing of its Form 10-K
March 17, 2006
Page 9 of 9
GREATER BAY BANCORP
DECEMBER 31, 2005 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars and shares in 000’s, except per share data)
SELECTED CONSOLIDATED CREDIT QUALITY DATA:
Dec 31 2005 | Sept 30 2005 | Jun 30 2005 | Mar 31 2005 | Dec 31 2004 | ||||||||||||||||
Nonperforming Assets (1) | ||||||||||||||||||||
Commercial | $ | 7,650 | $ | 5,495 | $ | 7,122 | $ | 8,213 | $ | 11,586 | ||||||||||
Real Estate Term and Construction | 42,068 | 43,621 | 57,404 | 26,591 | 19,608 | |||||||||||||||
SBA | 6,497 | 7,612 | 7,421 | 6,752 | 1,876 | |||||||||||||||
Venture Banking Group | — | — | — | 24 | 806 | |||||||||||||||
Specialty Finance | 10,375 | 11,382 | 8,034 | 10,816 | 9,835 | |||||||||||||||
Other | 4,504 | 3,821 | 8,105 | 189 | — | |||||||||||||||
Total Nonperforming Loans (2) | $ | 71,094 | $ | 71,931 | $ | 88,086 | $ | 52,585 | $ | 43,711 | ||||||||||
OREO | — | — | — | — | — | |||||||||||||||
Other Nonperforming Assets | 631 | 1,153 | 495 | 840 | 569 | |||||||||||||||
Total Nonperforming Assets (1) | $ | 71,725 | $ | 73,084 | $ | 88,581 | $ | 53,425 | $ | 44,280 | ||||||||||
Net Loan Charge-Offs (Recoveries) (3) | $ | 1,207 | $ | 3,098 | $ | 3,476 | $ | 3,511 | $ | 4,563 | ||||||||||
Ratio of Allowance for Loan and Lease Losses to: | ||||||||||||||||||||
End of Period Loans (4) | 1.73 | % | 1.98 | % | 2.07 | % | 2.20 | % | 2.39 | % | ||||||||||
Total Nonaccrual Loans | 115.56 | % | 129.09 | % | 111.81 | % | 188.94 | % | 245.97 | % | ||||||||||
Ratio of Provision for Credit Losses to Average Loans, annualized (4) | -0.89 | % | -0.28 | % | 0.20 | % | -0.15 | % | 0.02 | % | ||||||||||
Total Nonperforming Loans to Total Loans (4) | 1.50 | % | 1.53 | % | 1.86 | % | 1.17 | % | 0.97 | % | ||||||||||
Total Nonperforming Assets to Total Assets (4) | 1.01 | % | 1.03 | % | 1.22 | % | 0.76 | % | 0.64 | % | ||||||||||
Ratio of Quarterly Net Loan Charge-offs to Average Loans, annualized (4) | 0.10 | % | 0.26 | % | 0.30 | % | 0.32 | % | 0.41 | % | ||||||||||
Ratio of YTD Net Loan Charge-offs to YTD Average Loans (4) | 0.24 | % | 0.29 | % | 0.31 | % | 0.32 | % | 0.39 | % |
(1) | Nonperforming assets include nonperforming loans, Other Real Estate Owned and other nonperforming assets. |
(2) | Nonperforming loans are defined as loans which are on nonaccrual status. |
(3) | Net loan charge-offs are loan charge-offs net of recoveries. |
(4) | Amounts presented prior to the fourth quarter of 2005 have been reclassified to conform with the current presentation. |
SELECTED QUARTERLY CAPITAL RATIOS AND DATA:
Dec 31 2005 | Sept 30 2005 | Jun 30 2005 | Mar 31 2005 | Dec 31 2004 | ||||||||||||||||
Tier 1 Leverage ratio | 10.41 | % | 10.23 | % | 10.30 | % | 10.98 | % | 10.67 | % | ||||||||||
Tier 1 Risk-Based Capital ratio | 12.01 | % | 12.25 | % | 11.96 | % | 13.08 | % | 13.01 | % | ||||||||||
Total Risk-Based Capital ratio | 13.26 | % | 13.51 | % | 13.22 | % | 14.34 | % | 14.27 | % | ||||||||||
Total Equity to Assets ratio | 10.90 | % | 10.88 | % | 10.61 | % | 10.84 | % | 10.98 | % | ||||||||||
Tier I Capital | $ | 708,563 | $ | 702,030 | $ | 695,108 | $ | 733,387 | $ | 727,319 | ||||||||||
Total Risk-based Capital | $ | 782,525 | $ | 774,044 | $ | 768,187 | $ | 803,966 | $ | 797,788 | ||||||||||
Risk Weighted Assets | $ | 5,900,425 | $ | 5,730,710 | $ | 5,810,227 | $ | 5,605,961 | $ | 5,591,535 | ||||||||||
NON-GAAP RATIOS (1): | ||||||||||||||||||||
Tangible Total Equity to Tangible Assets - End of Period | 7.07 | % | 7.09 | % | 6.90 | % | 7.56 | % | 7.63 | % | ||||||||||
Tangible Common Book Value Per Common Share - End of Period (2) | $ | 7.61 | $ | 7.51 | $ | 7.44 | $ | 7.97 | $ | 7.96 | ||||||||||
Common Book Value Per Common Share - End of Period (3) | $ | 13.48 | $ | 13.22 | $ | 13.16 | $ | 12.85 | $ | 12.88 | ||||||||||
Total Common Shares Outstanding - End of Period | 49,906 | 50,425 | 50,756 | 51,046 | 51,179 | |||||||||||||||
(1) The following table provides a reconciliation of Total Equity to Tangible Total Equity and Total Assets to Tangible Assets: | ||||||||||||||||||||
Common Shareholders’ Equity | $ | 672,624 | $ | 666,701 | $ | 667,810 | $ | 655,732 | $ | 659,250 | ||||||||||
Convertible Preferred Stock | 103,387 | 102,706 | 103,366 | 103,569 | 103,816 | |||||||||||||||
Total Equity | 776,011 | 769,407 | 771,176 | 759,301 | 763,066 | |||||||||||||||
Less: Goodwill and Other Intangible Assets | (293,030 | ) | (288,250 | ) | (289,996 | ) | (249,063 | ) | (251,660 | ) | ||||||||||
Tangible Total Equity | $ | 482,981 | $ | 481,157 | $ | 481,180 | $ | 510,238 | $ | 511,406 | ||||||||||
Total Assets | $ | 7,120,969 | $ | 7,073,308 | $ | 7,266,105 | $ | 7,002,463 | $ | 6,951,171 | ||||||||||
Less: Goodwill and Other Intangible Assets | (293,030 | ) | (288,250 | ) | (289,996 | ) | (249,063 | ) | (251,660 | ) | ||||||||||
Tangible Assets | $ | 6,827,939 | $ | 6,785,058 | $ | 6,976,109 | $ | 6,753,400 | $ | 6,699,511 | ||||||||||
(2) | Computed as Common Shareholders’ Equity, less Goodwill and Other Intangible Assets divided by Total Common Shares outstanding. |
(3) | Computed as Common Shareholders’ Equity divided by Common Shares outstanding - end of period. |