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 REPORTS
NET INCOMEOF $25.9 MILLIONFORTHE FIRST QUARTEROF 2006
EAST PALO ALTO, Calif., April 27, 2006 – Greater Bay Bancorp (Nasdaq: GBBK), a $7.1 billion in assets financial services holding company, today announced results for the first quarter of 2006.
For the first quarter of 2006, Greater Bay Bancorp’snet income was $25.9 million, or $0.46 per diluted common share, compared to $21.5 million, or $0.34 per diluted common share, for the first quarter of 2005, and $27.5 million, or $0.48 per diluted common share, for the fourth quarter of 2005. For the first quarter of 2006, the Company’sreturn on average common equity, annualized, was 15.42% compared to 13.03% for the first quarter of 2005, and 16.25% for the fourth quarter of 2005.Return on average assets, annualized, for the first quarter of 2006 was 1.47% compared to 1.25% for the first quarter of 2005, and 1.53% for the fourth quarter of 2005.
“We are very pleased with our continued progress reflected in this quarter’s results,” commented Byron A. Scordelis, President and Chief Executive Officer of Greater Bay Bancorp. “We once again provided tangible affirmation of the strength of our core credit metrics. Our interest rate risk posture and deposit pricing discipline were reflected in the continued resilience of our net interest margin. Our underlying loan growth trends were encouraging, and our commercial insurance brokerage business achieved net new business inflow which neutralized declining premium levels.”
Net Interest Income
Net interest income for the first quarter of 2006 increased to $66.6 million from $66.0 million in the first quarter of 2005. This was primarily attributable to an increase in average loans of $259.2 million, partially offset by a decrease of $70.3 million in average interest earning securities.
Greater Bay Bancorp Reports First Quarter 2006 Results
April 27, 2006
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Net interest income for the first quarter of 2006 decreased to $66.6 million from $67.7 million in the fourth quarter of 2005.
Non-Interest Income
Non-interest income for the first quarter of 2006 was $60.0 million compared to $50.2 million in the first quarter of 2005. This was primarily attributable to:
· | Increases in insurance brokerage commissions and fees of $6.8 million, including $6.7 million related to Lucini / Parish which was acquired May 1, 2005, |
· | Increase in other income of $2.1 million due primarily to the $1.0 million other-than-temporary impairment charge in the first quarter of 2005, and |
· | Increases in operating lease revenue of $1.2 million. |
Non-interest income for the first quarter of 2006 was $60.0 million compared to $53.0 million in the fourth quarter of 2005. This was primarily attributable to increases in insurance commissions and fees of $7.9 million including seasonal override and contingent income, offset by decreases in other income of $1.1 million.
Non-interest income as a percentage of total revenues for the first quarter of 2006 was 47.4%, compared to 43.2% for the first quarter of 2005 and 43.9% for the fourth quarter of 2005.
“While our ABD insurance subsidiary continued to experience a positive net inflow of new business during the quarter, this was offset by a general softening of premium levels in the property and casualty and workers’ compensation areas,” stated Mr. Scordelis. “While we recognize this market dynamic as a normal cyclical consequence of the insurance brokerage business, we are fully confident in our long term ability to sustain both meaningful market share growth and top line revenue expansion at ABD.”
Operating Expenses
Operating expenses for the first quarter of 2006 increased to $92.1 million from $83.9 million in the first quarter of 2005. Excluding the impact of the Lucini-Parish acquisition and increased depreciation expenses associated with the growth of the Company’s operating lease portfolio, operating expenses increased by $2.1 million compared to the first quarter of 2005. This increase included the following recognition of expenses related to prior periods:
· | $1.1 million associated with the recognition of a restricted stock expense for holders whose vesting may be accelerated due to retirement age provisions in the Company’s equity incentive plan, and |
· | A charge of $0.4 million related to certain retirement plan expenses. |
These items were partially offset by a decrease in legal costs and other professional fees of $1.1 million.
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Greater Bay Bancorp Reports First Quarter 2006 Results
April 27, 2006
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Operating expenses for the first quarter of 2006 increased to $92.1 million from $86.4 million in the fourth quarter of 2005. This was primarily attributable to the $1.5 million recognition of expenses related to prior periods plus the following:
· | Normal seasonal increases in payroll taxes and 401(k) match expense of $3.0 million, and |
· | Increased severance expense of $0.8 million. |
These increases were partially offset by a decrease in legal costs and other professional fees expense of $1.5 million.
Credit Quality Overview
Net loan charge-offs in the first quarter of 2006 were $43,000, or less than 0.01% of average loans, annualized, compared to $3.5 million, or 0.32% of average loans, annualized, for the first quarter of 2005 and $1.2 million, or 0.10% of average loans, annualized, for the fourth quarter of 2005.
Non-performing assets were $33.4 million at March 31, 2006, compared to $53.4 million at March 31, 2005 and $71.7 million at December 31, 2005. The ratio of non-performing assets to total assets was 0.47% at March 31, 2006, compared to 0.76% at March 31, 2005 and 1.01% at December 31, 2005. The ratio of non-performing loans to total loans was 0.70% at March 31, 2006, compared to 1.17% at March 31, 2005 and 1.50% at December 31, 2005.
Non-performing assets declined in the first quarter of 2006 by $38.3 million due primarily to the repayment of one large relationship. During the first quarter of 2006, the Company received $36.8 million in principal payments, which retired this borrower’s indebtedness to the Company.
The Company recorded a negative provision for credit losses of $6.0 million for the first quarter of 2006, compared to a negative provision of $1.7 million for the first quarter of 2005, and a negative provision of $10.5 million for the fourth quarter of 2005.
The allowance for loan and lease losses was $74.6 million, or 1.57% of total loans, at March 31, 2006, compared to $99.4 million, or 2.20% of total loans, at March 31, 2005 and $82.2 million, or 1.73% of total loans, at December 31, 2005.
“We are extremely pleased with our quarterly results in virtually every key portfolio quality indicator,” commented Mr. Scordelis. “Our recording of a negative provision for the quarter is consistent with our negligible charge-off experience and the decline in our NPA level as well as with the continued strengthening of a broader array of additional credit metrics which we incorporate in our allowance determination process. We continue to adhere to a consistent and disciplined application of sound credit fundamentals, and believe that our results are reflective of that approach.”
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Greater Bay Bancorp Reports First Quarter 2006 Results
April 27, 2006
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Balance Sheet
At March 31, 2006, total assets were $7.1 billion, total net loans were $4.7 billion, total securities were $1.5 billion, and total deposits were $5.1 billion.
Total net loans increased by $222.3 million from March 31, 2005 to March 31, 2006. Excluding the impact of purchased and originated residential mortgage loans of $200.7 million, this growth reflects increases of $188.3 million in real estate construction and land loans, and $33.6 million in commercial loans. These increases were partially offset by a decrease of $150.9 million in the commercial term real estate loan portfolio.
Total net loans increased by $1.8 million from December 31, 2005 to March 31, 2006. This growth reflects an increase of $43.2 million in real estate construction and land loans, which was partially offset by a decrease of $33.0 million in the real estate other category. This reduction was the exclusive result of the payoff of a $36.8 million loan during the quarter that had previously been reported as non-performing.
“We are quite pleased with the overall lending results during the quarter. The growth in our loan portfolio was achieved in spite of the payoff of more than $70 million of non-performing and other large loans where accelerated collection was sought and successfully realized during the period,” stated Mr. Scordelis. “We continued the steady expansion of our construction portfolio, and also once again realized healthy growth across our specialty finance businesses,” he added.
Total securities were $1.5 billion as of March 31, 2006, compared to $1.6 billion at March 31, 2005 and $1.5 billion at December 31, 2005.
Total core deposits (excluding institutional and brokered deposits) at March 31, 2006 decreased by $274 million compared to March 31, 2005 and decreased by $93 million compared to December 31, 2005.
“In light of the escalation of general money market rates, we continued our effort to optimize the balance between deposit spreads and portfolio growth during the quarter,” stated Mr. Scordelis. “While demand deposit levels modestly declined, a majority of this change was due to identifiable seasonal or timing issues as well as to transfers of funds within the Bank.”
On March 24, 2006, all of the remaining holders of Greater Bay Bancorp’s contingent convertible debt securities due 2024 (“CODES”) exercised their contractual put right. This resulted in the retirement of $82.5 million of senior debt. No gain or loss was realized from this transaction.
Capital Overview
The capital ratios of Greater Bay Bancorp and its subsidiary bank continue to exceed the well-capitalized guidelines established by bank regulatory agencies.
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Greater Bay Bancorp Reports First Quarter 2006 Results
April 27, 2006
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The Company’s common equity to assets ratio was 9.71% at March 31, 2006, compared to 9.36% at March 31, 2005 and 9.45% at December 31, 2005. The Company’s tangible common equity to tangible assets ratio was 5.86% at March 31, 2006, compared to 6.02% at March 31, 2005 and 5.56% at December 31, 2005.
Net Interest Margin and Interest Rate Risk Management
The net interest margin (on a fully tax equivalent basis) for the first quarter of 2006 was 4.35%, compared to 4.43% for the first quarter of 2005 and 4.36% for the fourth quarter of 2005.
“Net interest margin stability reflected the Company’s practice of maintaining a fundamentally neutral interest rate position,” stated James S. Westfall, Executive Vice President and Chief Financial Officer. “Interest rate maturities of security purchases and wholesale financings are selected to offset exposures arising from customer business.”
Outlook for 2006
Our full year guidance for 2006 is as follows:
· | Core Loan Growth – based on the current forecast of moderate economic growth in our primary market area coupled with a planned increase in our lending and relationship management staff, we anticipate core loan portfolio growth in the mid to high single digit range, with this growth concentrated in the second half of the year. |
· | Core Deposit Growth – we anticipate core deposit growth in the low single digits, and 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 net charge-offs from 15 basis points to 25 basis points of average loans outstanding. |
· | Net Interest Margin – based on the Company’s anticipated core loan and deposit growth and its slightly net asset interest rate sensitivity position, we expect the margin to fluctuate in the 4.20% to 4.40% range. |
Conference Call
The Company will broadcast its earnings conference call live via the Internet at 8:00 a.m. (PDT) on Thursday, April 27, 2006. Participants may access this conference call through the Company’s website athttp://www.gbbk.com, under the “Investor Info” link, or throughhttp://www.earnings.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.
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Greater Bay Bancorp Reports First Quarter 2006 Results
April 27, 2006
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A replay of the conference call will be available on the websites. A telephone replay will also be available beginning at 11 a.m. PDT on April 27, 2006 through 9:00 p.m. on May 4, 2006 by dialing (800) 642-1687 or (706) 645-9291 and providing Conference ID 7927892.
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 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 local, national and international 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) government regulation, including ABD’s receipt of requests for information from state insurance commissioners and subpoenas from state attorneys general related to the ongoing insurance industry-wide investigations into contingent commissions and override payments; and (3) 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, 2005. 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 First Quarter 2006 Results
April 27, 2006
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GREATER BAY BANCORP
MARCH 31, 2006—FINANCIAL SUMMARY (UNAUDITED)
(Dollars and shares in 000’s, except per share data)
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA: | First Quarter 2006 | Fourth Quarter 2005 | Third Quarter 2005 | Second Quarter 2005 | First Quarter 2005 | |||||||||||||||
Interest income | $ | 103,754 | $ | 102,225 | $ | 100,710 | $ | 96,050 | $ | 91,798 | ||||||||||
Interest expense | 37,134 | 34,478 | 32,714 | 30,625 | 25,756 | |||||||||||||||
Net interest income before provision for / (recovery of) credit losses | 66,620 | 67,747 | 67,996 | 65,425 | 66,042 | |||||||||||||||
Provision for / (recovery of) credit losses | (6,004 | ) | (10,491 | ) | (3,352 | ) | 2,252 | (1,678 | ) | |||||||||||
Net interest income after provision for / (recovery of) credit losses | 72,624 | 78,238 | 71,348 | 63,173 | 67,720 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Insurance commissions and fees | 44,969 | 37,071 | 39,974 | 39,223 | 38,122 | |||||||||||||||
Rental revenues on operating leases | 5,264 | 4,906 | 4,901 | 4,463 | 4,032 | |||||||||||||||
Service charges and other fees | 2,540 | 2,533 | 2,496 | 2,869 | 2,550 | |||||||||||||||
Loan and international banking fees | 1,795 | 1,919 | 1,663 | 2,113 | 2,013 | |||||||||||||||
Income on bank owned life insurance | 1,911 | 1,869 | 1,877 | 2,004 | 1,797 | |||||||||||||||
Trust fees | 1,055 | 1,101 | 1,074 | 1,060 | 1,066 | |||||||||||||||
Gain on sale of loans | — | 172 | 100 | 111 | 95 | |||||||||||||||
Security gains, net | 168 | — | 43 | 9 | 290 | |||||||||||||||
Other income | 2,331 | 3,438 | 2,361 | 2,389 | 228 | |||||||||||||||
Total non-interest income | 60,033 | 53,009 | 54,489 | 54,241 | 50,193 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Compensation and benefits | 57,929 | 51,455 | 50,745 | 48,172 | 50,285 | |||||||||||||||
Occupancy and equipment | 11,322 | 11,285 | 11,278 | 11,148 | 10,412 | |||||||||||||||
Legal costs and other professional fees | 3,753 | 5,295 | 4,671 | 3,198 | 4,851 | |||||||||||||||
Depreciation—equipment leased to others | 4,091 | 4,013 | 4,108 | 3,735 | 3,370 | |||||||||||||||
Amortization of intangibles | 1,640 | 1,835 | 1,886 | 2,072 | 2,083 | |||||||||||||||
Other expenses | 13,379 | 12,476 | 11,936 | 12,805 | 12,947 | |||||||||||||||
Total operating expenses | 92,114 | 86,359 | 84,624 | 81,130 | 83,948 | |||||||||||||||
Income before income taxes and cumulative effect of accounting change | 40,543 | 44,888 | 41,213 | 36,284 | 33,965 | |||||||||||||||
Provision for income taxes | 14,772 | 17,433 | 15,626 | 13,609 | 12,455 | |||||||||||||||
Income before cumulative effect of accounting change | 25,771 | 27,455 | 25,587 | 22,675 | 21,510 | |||||||||||||||
Cumulative effect of accounting change, net of tax (1) | 130 | — | — | — | — | |||||||||||||||
Net income | $ | 25,901 | $ | 27,455 | $ | 25,587 | $ | 22,675 | $ | 21,510 | ||||||||||
EARNINGS PER SHARE DATA: | ||||||||||||||||||||
Earnings per common share before cumulative effect of accounting change (2) | ||||||||||||||||||||
Basic | $ | 0.48 | $ | 0.51 | $ | 0.47 | $ | 0.41 | $ | 0.38 | ||||||||||
Diluted | $ | 0.46 | $ | 0.48 | $ | 0.44 | $ | 0.38 | $ | 0.34 | ||||||||||
Earnings per common share after cumulative effect of accounting change (2) | ||||||||||||||||||||
Basic | $ | 0.48 | $ | 0.51 | $ | 0.47 | $ | 0.41 | $ | 0.38 | ||||||||||
Diluted | $ | 0.46 | $ | 0.48 | $ | 0.44 | $ | 0.38 | $ | 0.34 | ||||||||||
Weighted average common shares outstanding | 49,802 | 50,251 | 50,698 | 50,843 | 51,135 | |||||||||||||||
Weighted average common & common equivalent shares outstanding | 52,727 | 53,370 | 54,010 | 55,573 | 58,184 | |||||||||||||||
GAAP ratios | ||||||||||||||||||||
Return on quarterly average assets, annualized | 1.47 | % | 1.53 | % | 1.41 | % | 1.28 | % | 1.25 | % | ||||||||||
Return on quarterly average common shareholders’ equity, annualized | 15.42 | % | 16.25 | % | 15.13 | % | 13.68 | % | 13.03 | % | ||||||||||
Return on quarterly average total equity, annualized | 13.39 | % | 14.09 | % | 13.12 | % | 11.84 | % | 11.28 | % | ||||||||||
Net interest margin, annualized (3) | 4.35 | % | 4.36 | % | 4.32 | % | 4.27 | % | 4.43 | % | ||||||||||
Operating expense ratio, annualized (4) | 5.24 | % | 4.81 | % | 4.67 | % | 4.60 | % | 4.89 | % | ||||||||||
Efficiency ratio (5) | 72.73 | % | 71.52 | % | 69.09 | % | 67.80 | % | 72.22 | % | ||||||||||
NON-GAAP ratios | ||||||||||||||||||||
Efficiency ratio (excluding ABD) (6) | 68.63 | % | 62.70 | % | 60.12 | % | 60.79 | % | 68.86 | % |
(1) | Effective January 1, 2006, the Company adopted SFAS No.123 (revised 2004), “Share-Based Payment” (“SFAS 123R”), as a result of which the Company recognized a one-time cumulative adjustment, to record an estimate of future forfeitures on outstanding equity based awards for which compensation expense had been recognized prior to adoption. |
(2) | The following table provides a reconciliation of income available to common shareholders before and after cumulative effect of accounting change. Additionally, the Company’s outstanding convertible preferred stock was antidilutive for all periods presented. |
Income before cumulative effect of accounting change as reported | $ | 25,771 | $ | 27,455 | $ | 25,587 | $ | 22,675 | $ | 21,510 | ||||||||||
Less: dividends on convertible preferred stock | (1,832 | ) | (1,825 | ) | (1,834 | ) | (1,841 | ) | (1,840 | ) | ||||||||||
Income available to common shareholders before cumulative effect of accounting change | 23,939 | 25,630 | 23,753 | 20,834 | 19,670 | |||||||||||||||
Add: CODES interest and other related income/(loss), net of taxes | 59 | (99 | ) | 76 | 111 | 179 | ||||||||||||||
Income available to common shareholders before cumulative effect of accounting change | $ | 23,998 | $ | 25,531 | $ | 23,829 | $ | 20,945 | $ | 19,849 | ||||||||||
Cumulative effect of accounting change, net of tax | $ | 130 | — | — | — | — | ||||||||||||||
Income available to common shareholders after cumulative effect of accounting change | $ | 24,128 | $ | 25,531 | $ | 23,829 | $ | 20,945 | $ | 19,849 | ||||||||||
Weighted average common shares outstanding | 49,802 | 50,251 | 50,698 | 50,843 | 51,135 | |||||||||||||||
Weighted average common equivalent shares: | ||||||||||||||||||||
Stock options | 946 | 939 | 878 | 1,062 | 1,094 | |||||||||||||||
CODES due 2024 | 1,979 | 2,180 | 2,426 | 3,653 | 5,940 | |||||||||||||||
CODES due 2022 | — | — | 8 | 15 | 15 | |||||||||||||||
Total weighted average common & common equivalent shares outstanding | 52,727 | 53,370 | 54,010 | 55,573 | 58,184 | |||||||||||||||
(3) | Net interest income (on a tax equivalent basis) for the period, annualized and divided by average interest earning assets for the period. |
(4) | Total operating expenses for the period, annualized and divided by average quarterly assets. |
(5) | Total operating expenses divided by total revenue (the sum of net interest income and non-interest income, excluding provision for credit losses). |
(6) | 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) | $ | 81,183 | $ | 83,614 | $ | 81,796 | $ | 80,190 | $ | 77,744 | |||||
Operating expenses (excluding ABD) | $ | 55,717 | $ | 52,422 | $ | 49,174 | $ | 48,750 | $ | 53,535 |
Greater Bay Bancorp Reports First Quarter 2006 Results
April 27, 2006
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GREATER BAY BANCORP
MARCH 31, 2006—FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA AND RATIOS: | Mar 31 2006 | Dec 31 2005 | Sept 30 2005 | Jun 30 2005 | Mar 31 2005 | |||||||||||||||
Cash and Due From Banks | $ | 167,203 | $ | 152,153 | $ | 153,284 | $ | 190,048 | $ | 213,806 | ||||||||||
Fed Funds Sold | — | — | 20,000 | 10,000 | — | |||||||||||||||
Securities | 1,468,123 | 1,493,584 | 1,487,935 | 1,583,662 | 1,592,120 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 2,062,141 | 2,067,873 | 2,020,656 | 2,040,289 | 2,028,492 | |||||||||||||||
Term Real Estate—Commercial | 1,389,635 | 1,389,329 | 1,432,939 | 1,493,890 | 1,540,496 | |||||||||||||||
Total Commercial | 3,451,776 | 3,457,202 | 3,453,595 | 3,534,179 | 3,568,988 | |||||||||||||||
Real Estate Construction and Land | 688,086 | 644,883 | 609,969 | 543,117 | 499,817 | |||||||||||||||
Residential Mortgage | 271,658 | 266,263 | 258,268 | 260,453 | 71,004 | |||||||||||||||
Real Estate Other | 230,190 | 263,164 | 261,969 | 277,847 | 250,977 | |||||||||||||||
Consumer and Other | 100,020 | 108,833 | 115,593 | 137,827 | 129,859 | |||||||||||||||
Deferred Fees and Discounts, Net | (12,006 | ) | (12,376 | ) | (12,681 | ) | (12,939 | ) | (13,239 | ) | ||||||||||
Total Loans, Net of Deferred Fees and Discounts | 4,729,724 | 4,727,969 | 4,686,713 | 4,740,484 | 4,507,406 | |||||||||||||||
Allowance for Loan and Lease Losses | (74,568 | ) | (82,159 | ) | (92,857 | ) | (98,487 | ) | (99,355 | ) | ||||||||||
Total Loans, Net | 4,655,156 | 4,645,810 | 4,593,856 | 4,641,997 | 4,408,051 | |||||||||||||||
Goodwill | 242,728 | 243,289 | 236,511 | 236,211 | 212,077 | |||||||||||||||
Other Intangible Assets | 48,005 | 49,741 | 51,739 | 53,785 | 36,986 | |||||||||||||||
Other Assets | 527,291 | 536,392 | 529,983 | 550,402 | 539,423 | |||||||||||||||
Total Assets | $ | 7,108,506 | $ | 7,120,969 | $ | 7,073,308 | $ | 7,266,105 | $ | 7,002,463 | ||||||||||
Deposits: | ||||||||||||||||||||
Demand, Non-Interest Bearing | $ | 1,004,575 | $ | 1,093,157 | $ | 1,066,536 | $ | 1,091,208 | $ | 1,065,004 | ||||||||||
NOW, MMDA and Savings | 2,957,354 | 3,000,647 | 3,003,159 | 2,955,343 | 3,193,558 | |||||||||||||||
Time Deposits, $100,000 and Over | 782,891 | 741,682 | 750,406 | 696,740 | 602,432 | |||||||||||||||
Other Time Deposits | 363,941 | 223,053 | 195,315 | 136,008 | 134,749 | |||||||||||||||
Total Deposits | 5,108,761 | 5,058,539 | 5,015,416 | 4,879,299 | 4,995,743 | |||||||||||||||
Other Borrowings | 750,248 | 797,802 | 813,006 | 1,117,285 | 775,361 | |||||||||||||||
Subordinated Debt | 210,311 | 210,311 | 210,311 | 210,311 | 210,311 | |||||||||||||||
Other Liabilities | 232,866 | 265,607 | 252,510 | 275,417 | 249,170 | |||||||||||||||
Total Liabilities | 6,302,186 | 6,332,259 | 6,291,243 | 6,482,312 | 6,230,585 | |||||||||||||||
Minority interest: | ||||||||||||||||||||
Preferred Stock of Real Estate Investment Trust Subsidiaries | 12,739 | 12,699 | 12,658 | 12,617 | 12,577 | |||||||||||||||
Convertible Preferred Stock | 103,097 | 103,387 | 102,706 | 103,366 | 103,569 | |||||||||||||||
Common Shareholders’ Equity | 690,484 | 672,624 | 666,701 | 667,810 | 655,732 | |||||||||||||||
Total Equity | 793,581 | 776,011 | 769,407 | 771,176 | 759,301 | |||||||||||||||
Total Liabilities and Total Equity | $ | 7,108,506 | $ | 7,120,969 | $ | 7,073,308 | $ | 7,266,105 | $ | 7,002,463 | ||||||||||
RATIOS: | ||||||||||||||||||||
Loan Growth, current quarter to prior year quarter | 4.93 | % | 5.34 | % | 4.31 | % | 6.40 | % | 1.26 | % | ||||||||||
Loan Growth, current quarter to prior quarter, annualized | 0.15 | % | 3.49 | % | -4.50 | % | 20.74 | % | 1.73 | % | ||||||||||
Loan Growth, YTD | 0.15 | % | 5.34 | % | 5.91 | % | 11.33 | % | 1.73 | % | ||||||||||
Core Loan Growth, current quarter to prior year quarter (1) | 1.39 | % | 0.57 | % | -1.13 | % | 0.75 | % | -0.34 | % | ||||||||||
Core Loan Growth, current quarter to prior quarter, annualized (1) | 0.66 | % | 4.30 | % | -4.09 | % | 4.73 | % | -2.62 | % | ||||||||||
Core Loan Growth, YTD (1) | 0.66 | % | 0.57 | % | -0.68 | % | 1.06 | % | -2.62 | % | ||||||||||
Deposit Growth, current quarter to prior year quarter | 2.26 | % | -0.87 | % | -3.47 | % | -8.06 | % | -3.58 | % | ||||||||||
Deposit Growth, current quarter to prior quarter, annualized | 4.03 | % | 3.41 | % | 11.07 | % | -9.35 | % | -8.51 | % | ||||||||||
Deposit Growth, YTD | 4.03 | % | -0.87 | % | -2.29 | % | -8.83 | % | -8.51 | % | ||||||||||
Core Deposit Growth, current quarter to prior year quarter (2) | -5.78 | % | -5.03 | % | -6.45 | % | -9.21 | % | -0.04 | % | ||||||||||
Core Deposit Growth, current quarter to prior quarter, annualized (2) | -8.31 | % | -1.02 | % | 2.02 | % | -16.23 | % | -5.18 | % | ||||||||||
Core Deposit Growth, YTD (2) | -8.31 | % | -5.03 | % | -6.40 | % | -10.63 | % | -5.18 | % | ||||||||||
Revenue Growth, current quarter to prior year quarter (3) | 8.96 | % | 7.03 | % | 3.77 | % | 0.98 | % | -5.38 | % | ||||||||||
Revenue Growth, current quarter to prior quarter, annualized (3) | 19.80 | % | -5.60 | % | 9.35 | % | 11.84 | % | 12.26 | % | ||||||||||
Net Interest Income Growth, current quarter to prior year quarter | 0.88 | % | -0.52 | % | -3.23 | % | -8.98 | % | -12.38 | % | ||||||||||
Net Interest Income Growth, current quarter to prior quarter, annualized | -6.75 | % | -1.45 | % | 15.59 | % | -3.75 | % | -12.27 | % |
(1) | Core loans calculated as total loans less purchased residential mortgage loans. |
(2) | Core deposits calculated as total deposits less institutional and brokered time deposits. |
(3) | Revenue is the sum of net interest income before provision for / (recovery of) credit losses and total non-interest income. |
Greater Bay Bancorp Reports First Quarter 2006 Results
April 27, 2006
Page 9 of 10
GREATER BAY BANCORP
March 31, 2006—FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
Three months ended | ||||||||||||||||||||||||||||||
March 31, 2006 | December 31, 2005 | March 31, 2005 | ||||||||||||||||||||||||||||
Tax-Equivalent Basis (1) | Average balance (2) | Interest | Average yield / rate | Average balance (2) | Interest | Average yield / rate | Average balance (2) | Interest | Average yield / rate | |||||||||||||||||||||
INTEREST-EARNING ASSETS: | ||||||||||||||||||||||||||||||
Fed funds sold | $ | 12,290 | $ | 132 | 4.34 | % | $ | 74,740 | $ | 716 | 3.80 | % | $ | 32,489 | $ | 181 | 2.26 | % | ||||||||||||
Securities: | ||||||||||||||||||||||||||||||
Taxable | 1,425,340 | 15,622 | 4.45 | % | 1,374,102 | 14,862 | 4.29 | % | 1,499,446 | 15,955 | 4.32 | % | ||||||||||||||||||
Tax-exempt (1) | 82,596 | 1,494 | 7.33 | % | 80,793 | 1,476 | 7.25 | % | 84,781 | 1,403 | 6.71 | % | ||||||||||||||||||
Other short-term (3) | 9,762 | 35 | 1.46 | % | 11,245 | 45 | 1.58 | % | 3,796 | 135 | 14.39 | % | ||||||||||||||||||
Loans (4) | 4,721,031 | 86,959 | 7.47 | % | 4,673,852 | 85,611 | 7.27 | % | 4,461,799 | 74,590 | 6.78 | % | ||||||||||||||||||
Total interest-earning assets | 6,251,019 | 104,242 | 6.76 | % | 6,214,732 | 102,710 | 6.56 | % | 6,082,312 | 92,264 | 6.15 | % | ||||||||||||||||||
Noninterest-earning assets | 878,637 | — | 905,369 | — | 885,326 | — | ||||||||||||||||||||||||
Total assets | $ | 7,129,656 | 104,242 | $ | 7,120,101 | 102,710 | $ | 6,967,638 | 92,264 | |||||||||||||||||||||
INTEREST-BEARING LIABILITIES: | ||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||
MMDA, NOW and Savings | $ | 2,950,240 | 14,072 | 1.93 | % | $ | 3,111,275 | 14,841 | 1.89 | % | $ | 3,277,312 | 13,257 | 1.64 | % | |||||||||||||||
Time deposits over $100,000 | 356,157 | 2,968 | 3.38 | % | 352,606 | 2,736 | 3.08 | % | 348,154 | 1,835 | 2.14 | % | ||||||||||||||||||
Other time deposits | 660,914 | 6,721 | 4.12 | % | 583,307 | 5,105 | 3.47 | % | 381,737 | 2,027 | 2.15 | % | ||||||||||||||||||
Total interest-bearing deposits | 3,967,311 | 23,761 | 2.43 | % | 4,047,188 | 22,682 | 2.22 | % | 4,007,203 | 17,118 | 1.73 | % | ||||||||||||||||||
Short-term borrowings | 288,491 | 2,983 | 4.19 | % | 171,801 | 1,870 | 4.32 | % | 255,965 | 1,955 | 3.10 | % | ||||||||||||||||||
CODES | 75,101 | 101 | 0.55 | % | 87,500 | 117 | 0.53 | % | 227,334 | 308 | 0.55 | % | ||||||||||||||||||
Subordinated debt | 210,311 | 4,557 | 8.79 | % | 210,311 | 4,504 | 8.50 | % | 210,311 | 4,312 | 8.31 | % | ||||||||||||||||||
Other long-term borrowings | 474,316 | 5,732 | 4.90 | % | 456,962 | 5,304 | 4.61 | % | 155,980 | 2,063 | 5.36 | % | ||||||||||||||||||
Total interest-bearing liabilities | 5,015,530 | 37,134 | 3.00 | % | 4,973,762 | 34,478 | 2.75 | % | 4,856,794 | 25,756 | 2.15 | % | ||||||||||||||||||
Noninterest-bearing deposits | 1,041,806 | 1,086,424 | 1,051,341 | |||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 275,257 | 274,391 | 273,523 | |||||||||||||||||||||||||||
Minority Interest: Preferred stock of real estate investment trust subsidiaries | 12,715 | 12,674 | 12,571 | |||||||||||||||||||||||||||
Shareholders’ equity | 784,348 | 772,848 | 773,410 | |||||||||||||||||||||||||||
Total shareholders’ equity and liabilities | $ | 7,129,656 | 37,134 | $ | 7,120,101 | 34,478 | $ | 6,967,638 | 25,756 | |||||||||||||||||||||
Net interest income, on a tax-equivalent basis (1) | 67,108 | 68,232 | 66,508 | |||||||||||||||||||||||||||
Tax-equivalent adjustment | (488 | ) | (485 | ) | (466 | ) | ||||||||||||||||||||||||
Net interest income, as reported | $ | 66,620 | $ | 67,747 | $ | 66,042 | ||||||||||||||||||||||||
Net interest margin (5) | 4.35 | % | 4.36 | % | 4.43 | % | ||||||||||||||||||||||||
(1) | For the period ended March 31, 2006, income from tax-exempt securities issued by state and local governments or authorities, is adjusted by an increment that equates tax-exempt income to tax equivalent basis (assuming a 35% federal income tax rate); all prior periods presentation has been changed to conform to current period presentation. |
(2) | For the period ended March 31, 2006, nonaccrual loans are included in the average balance; prior periods presentation has been changed to conform to current period presentation. |
(3) | Includes average interest-earning deposits in other financial institutions. |
(4) | Amortization of deferred loan fees, net of the amortization of deferred costs, resulted in an increase (decrease) of interest income on loans by $245,000, $580,000 and ($1,000) for the three months ended March 31, 2006, December 31, 2005 and March 31, 2005, respectively. |
(5) | Net interest margin during the period equals (a) the difference between tax-equivalent 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 Bancorp Reports First Quarter 2006 Results
April 27, 2006
Page 10 of 10
GREATER BAY BANCORP
MARCH 31, 2006—FINANCIAL SUMMARY (UNAUDITED)
(Dollars and shares in 000’s, except per share data)
SELECTED CONSOLIDATED CREDIT QUALITY DATA: | Mar 31 2006 | Dec 31 2005 | Sept 30 2005 | Jun 30 2005 | Mar 31 2005 | |||||||||||||||
Nonperforming Assets (1) | ||||||||||||||||||||
Commercial | $ | 7,681 | $ | 7,650 | $ | 5,495 | $ | 7,122 | $ | 8,213 | ||||||||||
Real Estate Term and Construction | 11,452 | 42,068 | 43,621 | 57,404 | 26,591 | |||||||||||||||
SBA | 3,627 | 6,497 | 7,612 | 7,421 | 6,752 | |||||||||||||||
Venture Banking Group | 77 | — | — | — | 24 | |||||||||||||||
Specialty Finance | 9,437 | 10,375 | 11,382 | 8,034 | 10,816 | |||||||||||||||
Other | 718 | 4,504 | 3,821 | 8,105 | 189 | |||||||||||||||
Total Nonperforming Loans (2) | $ | 32,992 | $ | 71,094 | $ | 71,931 | $ | 88,086 | $ | 52,585 | ||||||||||
OREO | — | — | — | — | — | |||||||||||||||
Other Nonperforming Assets | 438 | 631 | 1,153 | 495 | 840 | |||||||||||||||
Total Nonperforming Assets (1) | $ | 33,430 | $ | 71,725 | $ | 73,084 | $ | 88,581 | $ | 53,425 | ||||||||||
Net Loan Charge-Offs (Recoveries) (3) | $ | 43 | $ | 1,207 | $ | 3,098 | $ | 3,476 | $ | 3,511 | ||||||||||
Ratio of Allowance for Loan and Lease Losses to: | ||||||||||||||||||||
End of Period Loans | 1.57 | % | 1.73 | % | 1.98 | % | 2.07 | % | 2.20 | % | ||||||||||
Total Nonaccrual Loans | 226.02 | % | 115.56 | % | 129.09 | % | 111.81 | % | 188.94 | % | ||||||||||
Ratio of Provision for / (recovery of) Credit Losses to Average Loans, annualized | -0.52 | % | -0.89 | % | -0.28 | % | 0.20 | % | -0.15 | % | ||||||||||
Total Nonperforming Loans to Total Loans | 0.70 | % | 1.50 | % | 1.53 | % | 1.86 | % | 1.17 | % | ||||||||||
Total Nonperforming Assets to Total Assets | 0.47 | % | 1.01 | % | 1.03 | % | 1.22 | % | 0.76 | % | ||||||||||
Ratio of Quarterly Net Loan Charge-offs to Average Loans, annualized | 0.00 | % | 0.10 | % | 0.26 | % | 0.30 | % | 0.32 | % | ||||||||||
Ratio of YTD Net Loan Charge-offs to YTD Average Loans | 0.00 | % | 0.24 | % | 0.29 | % | 0.31 | % | 0.32 | % |
(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. |
SELECTED QUARTERLY CAPITAL RATIOS AND DATA: | Mar 31 2006 | Dec 31 2005 | Sept 30 2005 | Jun 30 2005 | Mar 31 2005 | |||||||||||||||
Tier 1 Leverage ratio | 10.77 | % | 10.41 | % | 10.23 | % | 10.30 | % | 10.98 | % | ||||||||||
Tier 1 Risk-Based Capital ratio | 12.48 | % | 12.01 | % | 12.25 | % | 11.96 | % | 13.08 | % | ||||||||||
Total Risk-Based Capital ratio | 13.73 | % | 13.26 | % | 13.51 | % | 13.22 | % | 14.34 | % | ||||||||||
Total Equity to Assets ratio | 11.16 | % | 10.90 | % | 10.88 | % | 10.61 | % | 10.84 | % | ||||||||||
Common Equity to Assets ratio | 9.71 | % | 9.45 | % | 9.43 | % | 9.19 | % | 9.36 | % | ||||||||||
Tier I Capital | $ | 734,692 | $ | 708,563 | $ | 702,030 | $ | 695,108 | $ | 733,387 | ||||||||||
Total Risk-based Capital | $ | 808,436 | $ | 782,525 | $ | 774,044 | $ | 768,187 | $ | 803,966 | ||||||||||
Risk Weighted Assets | $ | 5,889,032 | $ | 5,900,425 | $ | 5,730,710 | $ | 5,810,227 | $ | 5,605,961 | ||||||||||
NON-GAAP RATIOS (1): | ||||||||||||||||||||
Tangible Common Equity to Tangible Assets—End of Period (2) | 5.86 | % | 5.56 | % | 5.58 | % | 5.42 | % | 6.02 | % | ||||||||||
Tangible Common Book Value Per Common Share—End of Period (3) | $ | 7.95 | $ | 7.61 | $ | 7.51 | $ | 7.44 | $ | 7.97 | ||||||||||
Common Book Value Per Common Share—End of Period (4) | $ | 13.73 | $ | 13.48 | $ | 13.22 | $ | 13.16 | $ | 12.85 | ||||||||||
Total Common Shares Outstanding—End of Period | 50,288 | 49,906 | 50,425 | 50,756 | 51,046 |
(1) | The following table provides a reconciliation of Common Equity to Tangible Common Equity and Total Assets to Tangible Assets: |
Common Shareholders’ Equity | $ | 690,484 | $ | 672,624 | $ | 666,701 | $ | 667,810 | $ | 655,732 | ||||||||||
Less: Goodwill and Other Intangible Assets | (290,733 | ) | (293,030 | ) | (288,250 | ) | (289,996 | ) | (249,063 | ) | ||||||||||
Tangible Common Equity | $ | 399,751 | $ | 379,594 | $ | 378,451 | $ | 377,814 | $ | 406,669 | ||||||||||
Total Assets | $ | 7,108,506 | $ | 7,120,969 | $ | 7,073,308 | $ | 7,266,105 | $ | 7,002,463 | ||||||||||
Less: Goodwill and Other Intangible Assets | (290,733 | ) | (293,030 | ) | (288,250 | ) | (289,996 | ) | (249,063 | ) | ||||||||||
Tangible Assets | $ | 6,817,773 | $ | 6,827,939 | $ | 6,785,058 | $ | 6,976,109 | $ | 6,753,400 | ||||||||||
(2) | Computed as Common Shareholders’ Equity, less Goodwill and Other Intangible Assets divided by Tangible Assets. |
(3) | Computed as Common Shareholders’ Equity, less Goodwill and Other Intangible Assets divided by Total Common Shares outstanding—end of period. |
(4) | Computed as Common Shareholders’ Equity divided by Common Shares outstanding—end of period. |