Exhibit 99.1
For Information Contact At Greater Bay Bancorp: Byron A. Scordelis, President and CEO (650) 838-6101 James S. Westfall, EVP and CFO (650) 838-6108 | At Silverman Heller Associates: Philip Bourdillon/Gene Heller (310) 208-2550 | |
FOR IMMEDIATE RELEASE |
GREATER BAY BANCORP REPORTS
FINANCIAL RESULTS
FORTHE SECOND QUARTEROF 2007
EAST PALO ALTO, Calif., August 7, 2007 – Greater Bay Bancorp (Nasdaq: GBBK), a $7.3 billion in assets financial services holding company, today announced results for the second quarter of 2007 and six months ended June 30, 2007.
For the second quarter of 2007, the Company’snet income was $17.5 million, or $0.35 per diluted common share, compared to $26.1 million, or $0.47 per diluted common share, for the second quarter of 2006, and $17.8 million, or $0.31 per diluted common share, for the first quarter of 2007. For the first six months of 2007, net income was $35.2 million, or $0.66 per diluted common share, compared to $52.3 million, or $0.94 per diluted common share for the first six months of 2006.
Operating results for the second quarter of 2007 included expenses of $2.1 million ($1.6 million after tax) for professional services associated with the Company’s proposed merger with Wells Fargo & Company and a write-off of $0.8 million ($0.5 million after tax) in capitalized debt issuance costs for a debt offering that was cancelled due to the proposed merger.
On June 30, 2007, the Company redeemed its outstanding convertible Series B Preferred Stock with a carrying value of $102.6 million for $100.5 million. The $2.0 million (after tax) excess of the carrying value over the redemption value did not affect reported net income for the second quarter or the first six months of 2007, but is included in net income available to common shareholders for purposes of calculating net income per share amounts for the second quarter and the first six months of 2007.
For the second quarter of 2007, the Company’sreturn on average common equity, annualized, was 9.29% compared to 14.85% for the second quarter of 2006, and 9.65% for the first quarter of 2007. Return on average common equity, annualized, for the first six months of 2007 was 9.47% compared to 15.79% for the same period in 2006.Return on average assets, annualized, for the second quarter of 2007 was 0.96% compared to 1.47% for the second quarter of 2006, and 0.98% for the first quarter of 2007. Return on average assets, annualized, was 0.97% for the first six months of 2007 compared to 1.49% for the same period in 2006.
Greater Bay Bancorp Reports
Financial Results for the Second Quarter of 2007
August 7, 2007
Page 2 of 12
Net Interest Income and Margin
Net interest income for the second quarter of 2007 decreased to $59.5 million from $65.8 million in the second quarter of 2006, and from $59.9 million in the first quarter of 2007.
The net interest margin (on a fully tax-equivalent basis) for the second quarter of 2007 was 3.71%, compared to 4.26% for the second quarter of 2006 and 3.78% for the first quarter of 2007. The five basis point increase in the linked-quarter interest-earning asset yield was exceeded by a 12 basis point increase in the cost of interest-bearing liabilities, reflecting a continued deposit mix shift toward higher yielding products.
Net interest income for the first half of 2007 decreased to $119.4 million from $132.7 million for the same period in 2006. The net interest margin (on a fully tax-equivalent basis) for the first six months of 2007 was 3.75% compared to 4.31% for the same period in 2006.
Non-Interest Income
Non-interest income for the second quarter of 2007 increased to $58.2 million compared to $56.8 million in the second quarter of 2006. The $1.4 million increase was due to increases of $3.3 million in insurance commissions and fees and $1.6 million in gains on deferred compensation investments, which were partially offset by a decrease of $3.8 million in mark-to-market gains on venture capital and equity securities.
Non-interest income for the second quarter of 2007 remained relatively flat compared to the first quarter of 2007.
Non-interest income in the first six months of 2007 increased to $116.7 million from $115.5 million in the first six months of 2006. The $1.2 million increase was due primarily to increases of $2.6 million in insurance commissions and fees and $1.5 million in gains on deferred compensation investments, which were partially offset by decreases of $1.7 million in mark-to-market gains on venture capital and equity securities and $1.2 million rental revenues on operating leases.
Non-interest income as a percentage of total revenues for the second quarter of 2007 was 49.5%, compared to 46.3% for the second quarter of 2006 and 49.4% for the first quarter of 2007. Non-interest income as a percentage of total revenues for the first six months of 2007 was 49.4%, compared to 46.5% for the same period one year ago.
Operating Expenses
Operating expenses for the second quarter of 2007 increased $7.5 million to $90.5 million from $83.0 million in the second quarter of 2006. Second quarter 2007 operating expenses compared to second quarter 2006 included:
• | Increase of $4.8 million in compensation expenses due mainly to increases in average salaries, bonus levels and share based compensation expense |
• | Increase of $1.2 million in legal costs and other professional fees primarily due to $2.1 million in professional services expense associated with the Company’s pending merger with Wells Fargo & Company, and |
-more -
Greater Bay Bancorp Reports
Financial Results for the Second Quarter of 2007
August 7, 2007
Page 3 of 12
• | Increase of $1.8 million in other expenses due principally to a $0.8 million write-off of debt issuance costs related to a cancelled debt offering. |
Operating expenses for the second quarter of 2007 decreased to $90.5 million from $90.7 million in the first quarter of 2007. Second quarter 2007 operating expenses compared to first quarter 2007 included:
• | Decrease of $3.1 million in compensation and benefits due mainly to lower share based compensation expense of $1.2 million, lower payroll taxes of $1.2 million and lower 401(k) contribution expense of $0.9 million. |
• | Increase of $1.0 million in legal costs and other professional fees primarily due to merger related expenses |
• | Increase in other expenses related to the write-off of debt issuance costs |
Operating expenses in the first six months of 2007 increased to $181.1 million from $173.5 million in the first half of 2006. The first six months of 2007 operating expenses compared to the same period in 2006 included:
• | Increase of $6.0 million in compensation expenses due mainly to increases in salaries of $1.1 million, bonus expense of $1.5 million and share based compensation expense of $2.6 million |
• | Increase of $1.6 million in legal costs and other professional fees due primarily to merger related costs and professional services associated with the Company’s previously announced strategic planning project |
• | Increase of $1.7 million in other expenses due mainly to the write-off of debt issuance costs related to a cancelled debt offering and $0.9 million in outsourced data processing fees. |
Income Taxes
The Company’s effective tax rate was 36.6% for the second quarter of 2007 compared to 37.2% for the second quarter of 2006. The effective tax rate was 37.5% for the first six months of 2007 compared to 36.8% for the same period in 2006.
Credit Quality Overview
Net loan charge-offs in the second quarter of 2007 were $1.8 million, or 0.14% of average loans, annualized, compared to $2.7 million or 0.23% of average loans, annualized, for the second quarter of 2006 and $1.1 million, or 0.09% of average loans, annualized, for the first quarter of 2007. Net loan charge-offs in the first six months of 2007 were $2.9 million, or 0.12% of average loans, annualized, compared to $2.7 million or 0.12% for the same period in 2006.
Provision for credit losses was a negative $0.4 million for the second quarter of 2007, compared to a negative $1.9 million for the second quarter of 2006, and a negative $1.1 million for the first quarter of 2007. The provision for credit losses for the first six months of 2007 was a negative $1.5 million, compared to a negative $7.9 million for the first six months of 2006.
Non-performing assets were $24.4 million at June 30, 2007, compared to $32.6 million at June 30, 2006 and $32.1 million at March 31, 2007. The ratio of non-performing assets to total assets was 0.33% at June 30, 2007, compared to 0.44% at June 30, 2006 and 0.43% at March 31,
-more -
Greater Bay Bancorp Reports
Financial Results for the Second Quarter of 2007
August 7, 2007
Page 4 of 12
2007. The ratio of non-accrual loans to total loans was 0.48% at June 30, 2007, compared to 0.68% at June 30, 2006 and 0.64% at March 31, 2007.
Allowance for loan and lease losses was $64.1 million, or 1.27% of total loans, at June 30, 2007, compared to $71.7 million, or 1.50% of total loans, at June 30, 2006 and $66.0 million, or 1.35% of total loans, at March 31, 2007.
Balance Sheet
At June 30, 2007, total assets were $7.3 billion, total net loans and leases were $5.1 billion, total securities were $1.4 billion, and total deposits were $5.3 billion.
Total loans and leases, net of deferred costs and fees, were $5.1 billion at June 30, 2007, which represents an increase of $277.6 million, or 5.8%, compared to June 30, 2006. This growth reflects an increase of $354.4 million, or 17.1%, in commercial loans and leases plus $97.7 million in commercial term real estate loans. These increases were partially offset by a decline of $106.0 million, or 13.9%, in construction and land loans plus $35.7 million in consumer and other loans, $19.7 million in real estate other loans and $16.9 million in residential mortgages.
Total loans and leases, net of deferred costs and fees, were $5.1 billion at June 30, 2007, which represents an increase of $146.4 million, or 12.0% annualized, compared to March 31, 2007. This growth was most notable in commercial loans and leases, which increased by $127.4 million or an annualized rate of 22.2%. Additional increases in commercial term real estate loans of $24.1 million and in construction and land loans of $7.4 million were partially offset by a decline of $15.9 million in residential mortgage lending.
Securities totaled $1.4 billion as of June 30, 2007, compared to $1.6 billion at June 30, 2006 and $1.4 billion at March 31, 2007.
Total deposits at June 30, 2007 were $5.3 billion, which represents an increase of $277.2 million, or 5.5%, compared to June 30, 2006, and a decrease of $9.5 million compared to March 31, 2007.
Core deposits (excluding institutional and brokered deposits) at June 30, 2007 were $3.9 billion, which represents a decrease of $321.4 million, or 7.6%, compared to June 30, 2006, and a decrease of $336.4 million compared to March 31, 2007. The majority of this core deposit outflow occurred in April, and is viewed in part as being a seasonal event, with other outflow occurring in the area of large specialty deposits which continued a trend noted in prior quarters.
Capital Overview
The capital ratios of Greater Bay Bancorp and its subsidiary bank continue to comfortably exceed minimum well-capitalized guidelines established by bank regulatory agencies.
The Company’s common equity to assets ratio was 10.32% at June 30, 2007, compared to 9.64% at June 30, 2006 and 10.13% at March 31, 2007. The Company’s tangible common equity to tangible assets ratio was 6.66% at June 30, 2007, compared to 5.95% at June 30, 2006 and 6.47% at March 31, 2007.
-more -
Greater Bay Bancorp Reports
Financial Results for the Second Quarter of 2007
August 7, 2007
Page 5 of 12
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, Coast Commercial Bank, Golden Gate Bank, Mid-Peninsula Bank, Mt. Diablo National Bank, Peninsula Bank of Commerce and Santa Clara Valley National Bank. Nationally, Greater Bay Bancorp provides specialized leasing and loan services through its specialty finance group, which includes Matsco, Greater Bay Business Funding 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, among other things, our pending merger with Wells Fargo & Company, the Company’s current expectations regarding future operating results, net interest margin, net loan charge-offs, asset quality, level of loan loss provisions, growth in loans and deposits, ABD revenue growth and level of operating expenses. 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; (3) failure to consummate our merger with Wells Fargo & Company as a result of the inability to satisfy a condition to close, including the inability to obtain requisite shareholder or governmental approval; 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, 2006. 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, except as required by law.
For additional information and press releases about Greater Bay Bancorp, visit the Company’s website athttp://www.gbbk.com.
-Financial Tables Follow-
-more -
Greater Bay Bancorp Reports Financial Results for the Second Quarter of 2007
August 7, 2007
Page 6 of 12
GREATER BAY BANCORP
JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars and shares in 000’s, except per share data)
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
Second Quarter 2007 | First Quarter 2007 | Fourth Quarter 2006 | Third Quarter 2006 | Restated(6) Second Quarter 2006 | ||||||||||||||||
Interest income | $ | 115,255 | $ | 113,479 | $ | 116,308 | $ | 113,916 | $ | 108,321 | ||||||||||
Interest expense | 55,799 | 53,572 | 52,419 | 50,142 | 42,487 | |||||||||||||||
Net interest income before (reversal of) / provision for credit losses | 59,456 | 59,907 | 63,889 | 63,774 | 65,834 | |||||||||||||||
(Reversal of) / provision for credit losses | (418 | ) | (1,073 | ) | (384 | ) | (443 | ) | (1,886 | ) | ||||||||||
Net interest income after (reversal of) / provision for credit losses | 59,874 | 60,980 | 64,273 | 64,217 | 67,720 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Insurance commissions and fees | 43,541 | 43,898 | 38,730 | 41,757 | 40,235 | |||||||||||||||
Rental revenue on operating leases | 4,215 | 4,322 | 4,490 | 4,632 | 4,790 | |||||||||||||||
Service charges and other fees | 2,239 | 2,196 | 2,324 | 2,363 | 2,368 | |||||||||||||||
Loan and international banking fees | 2,359 | 2,047 | 1,980 | 1,960 | 1,718 | |||||||||||||||
Income on bank owned life insurance | 2,107 | 1,726 | 2,003 | 2,038 | 1,922 | |||||||||||||||
Trust fees | 1,097 | 1,054 | 1,138 | 1,059 | 1,127 | |||||||||||||||
Other income | 2,633 | 3,221 | 908 | 1,643 | 4,610 | |||||||||||||||
Total non-interest income | 58,191 | 58,464 | 51,573 | 55,452 | 56,770 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Compensation and benefits | 55,709 | 58,762 | 55,279 | 52,548 | 50,906 | |||||||||||||||
Occupancy and equipment | 11,319 | 10,751 | 11,457 | 11,896 | 11,192 | |||||||||||||||
Legal costs and other professional fees | 5,076 | 4,123 | 3,950 | 5,074 | 3,884 | |||||||||||||||
Depreciation - operating leases | 3,270 | 3,393 | 3,503 | 3,665 | 3,917 | |||||||||||||||
Amortization of intangibles | 1,896 | 1,462 | 1,507 | 1,678 | 1,689 | |||||||||||||||
Other expenses | 13,202 | 12,167 | 12,281 | 16,220 | 11,387 | |||||||||||||||
Total operating expenses | 90,472 | 90,658 | 87,977 | 91,081 | 82,975 | |||||||||||||||
Income before provision for income taxes and cumulative effect of accounting change | 27,593 | 28,786 | 27,869 | 28,588 | 41,515 | |||||||||||||||
Provision for income taxes | 10,105 | 11,027 | 9,091 | 10,076 | 15,423 | |||||||||||||||
Net income | $ | 17,488 | $ | 17,759 | $ | 18,778 | $ | 18,512 | $ | 26,092 | ||||||||||
EARNINGS PER SHARE DATA: | ||||||||||||||||||||
Net Income per common share (1) | ||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.32 | $ | 0.34 | $ | 0.33 | $ | 0.48 | ||||||||||
Diluted | $ | 0.35 | $ | 0.31 | $ | 0.33 | $ | 0.32 | $ | 0.47 | ||||||||||
Weighted average common shares outstanding | 50,639 | 50,488 | 50,478 | 50,423 | 50,188 | |||||||||||||||
Weighted average common & potential common shares outstanding | 51,440 | 51,294 | 51,180 | 51,366 | 51,173 | |||||||||||||||
GAAP ratios | ||||||||||||||||||||
Return on quarterly average assets, annualized | 0.96 | % | 0.98 | % | 1.00 | % | 1.00 | % | 1.47 | % | ||||||||||
Return on quarterly average common shareholders’ equity, annualized | 9.29 | % | 9.65 | % | 10.03 | % | 10.15 | % | 14.85 | % | ||||||||||
Return on quarterly average total equity, annualized | 8.45 | % | 8.48 | % | 8.81 | % | 8.89 | % | 12.95 | % | ||||||||||
Net interest margin, annualized (2) | 3.71 | % | 3.78 | % | 3.91 | % | 3.97 | % | 4.26 | % | ||||||||||
Operating expense ratio, annualized (3) | 4.96 | % | 5.01 | % | 4.71 | % | 4.92 | % | 4.66 | % | ||||||||||
Efficiency ratio (4) | 76.90 | % | 76.59 | % | 76.20 | % | 76.39 | % | 67.68 | % | ||||||||||
NON-GAAP ratios | ||||||||||||||||||||
Efficiency ratio (excluding ABD & other ABD expenses paid by holding company) (5) | 72.40 | % | 72.92 | % | 67.08 | % | 69.63 | % | 58.27 | % | ||||||||||
(1) The following table provides a reconciliation of income available to common shareholders. Additionally, the Company’s outstanding convertible preferred stock was antidilutive for all periods presented. |
| |||||||||||||||||||
Net income | $ | 17,488 | $ | 17,759 | $ | 18,778 | $ | 18,512 | $ | 26,092 | ||||||||||
Less: dividends on convertible preferred stock | (1,348 | ) | (1,831 | ) | (1,832 | ) | (1,832 | ) | (1,822 | ) | ||||||||||
Plus: excess of carrying value over the consideration paid on redemption of preferred stock (7) | 2,030 | — | — | — | — | |||||||||||||||
Net Income available to common shareholders | $ | 18,170 | $ | 15,928 | $ | 16,946 | $ | 16,680 | $ | 24,270 | ||||||||||
Weighted average common shares outstanding | 50,639 | 50,488 | 50,478 | 50,423 | 50,188 | |||||||||||||||
Weighted average potential common shares: | ||||||||||||||||||||
Stock options | 801 | 806 | 702 | 943 | 985 | |||||||||||||||
Total weighted average common & potential common shares outstanding | 51,440 | 51,294 | 51,180 | 51,366 | 51,173 | |||||||||||||||
(2) Net interest income (on a tax equivalent basis) for the period, annualized and divided by average quarterly interest earning assets for the period. |
| |||||||||||||||||||
(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) | $ | 73,335 | $ | 74,032 | $ | 75,911 | $ | 77,083 | $ | 82,180 | ||||||||||
Operating expenses (excluding ABD & other ABD-related expenses) | $ | 53,091 | $ | 53,990 | $ | 50,924 | $ | 53,670 | $ | 47,888 | ||||||||||
(6) Restated Q2 2006 to reflect adoption of SEC Staff Accounting Bulletin No.108 effective January 1, 2006. |
| |||||||||||||||||||
(7) On June 30, 2007, the Company redeemed its outstanding convertible Series B Preferred Stock which had a carrying value of $102.6 million at its stated value of $50.00 per share for total consideration of $100.5 million. The $2.0 million excess of the carrying value of the redeemed shares over the consideration paid was recorded as an adjustment to paid-in-capital, which is included in Common Stock. This $2.0 million adjustment to paid-in-capital is also included in income available to common shareholders for purposes of determining the net income per common share. |
|
Greater Bay Bancorp Reports Financial Results for the Second Quarter of 2007
August 7, 2007
Page 7 of 12
GREATER BAY BANCORP
JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars and shares in 000’s, except per share data)
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
Six Months Ended June 30, | ||||||||
2007 | Restated(7) 2006 | |||||||
Interest income | $ | 228,734 | $ | 212,336 | ||||
Interest expense | 109,371 | 79,621 | ||||||
Net interest income before (reversal of) / provision for credit losses | 119,363 | 132,715 | ||||||
Reversal of provision for credit losses | (1,491 | ) | (7,890 | ) | ||||
Net interest income after reversal of provision for credit losses | 120,854 | 140,605 | ||||||
Non-interest income: | ||||||||
Insurance commissions and fees | 87,439 | 84,835 | ||||||
Rental revenue on operating leases | 8,537 | 9,740 | ||||||
Service charges and other fees | 4,435 | 4,908 | ||||||
Loan and international banking fees | 4,406 | 3,513 | ||||||
Income on bank owned life insurance | 3,833 | 3,833 | ||||||
Trust fees | 2,151 | 2,182 | ||||||
Other income | 5,854 | 6,525 | ||||||
Total non-interest income | 116,655 | 115,536 | ||||||
Operating expenses: | ||||||||
Compensation and benefits | 114,471 | 108,462 | ||||||
Occupancy and equipment | 22,070 | 22,514 | ||||||
Legal costs and other professional fees | 9,199 | 7,637 | ||||||
Depreciation - operating leases | 6,663 | 7,920 | ||||||
Amortization of intangibles | 3,358 | 3,329 | ||||||
Other expenses | 25,369 | 23,658 | ||||||
Total operating expenses | 181,130 | 173,520 | ||||||
Income before provision for income taxes and cumulative effect of accounting change | 56,379 | 82,621 | ||||||
Provision for income taxes | 21,132 | 30,429 | ||||||
Income before cumulative effect of accounting change | 35,247 | 52,192 | ||||||
Cumulative effect of accounting change, net of tax (1) | — | 130 | ||||||
Net income | $ | 35,247 | $ | 52,322 | ||||
EARNINGS PER SHARE DATA: | ||||||||
Net Income per common share before cumulative effect of accounting change (2) | ||||||||
Basic | $ | 0.67 | $ | 0.97 | ||||
Diluted | $ | 0.66 | $ | 0.94 | ||||
Net Income per common share after cumulative effect of accounting change (2) | ||||||||
Basic | $ | 0.67 | $ | 0.97 | ||||
Diluted | $ | 0.66 | $ | 0.94 | ||||
Weighted average common shares outstanding | 50,568 | 49,997 | ||||||
Weighted average common & potential common shares outstanding | 51,378 | 51,860 | ||||||
GAAP ratios | ||||||||
Return on YTD average assets, annualized | 0.97 | % | 1.49 | % | ||||
Return on YTD common shareholders’ equity, annualized | 9.47 | % | 15.79 | % | ||||
Return on YTD average total equity, annualized | 8.46 | % | 13.67 | % | ||||
Net interest margin, annualized (3) | 3.75 | % | 4.31 | % | ||||
Operating expense ratio, annualized (4) | 4.99 | % | 4.94 | % | ||||
Efficiency ratio (5) | 76.74 | % | 69.90 | % | ||||
NON-GAAP ratios | ||||||||
Efficiency Ratio (excluding ABD & other ABD expenses paid by holding company) (6) | 72.66 | % | 62.27 | % | ||||
(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 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. |
| |||||||
Net income before cumulative effect of accounting change as reported | $ | 35,247 | $ | 52,192 | ||||
Less: dividends on convertible preferred stock | (3,179 | ) | (3,654 | ) | ||||
Plus: excess of carrying value over the consideration paid on redemption of preferred stock (8) | 2,030 | — | ||||||
Net Income available to common shareholders before cumulative effect of accounting change | 34,098 | 48,538 | ||||||
Add: CODES interest and other related income/(loss), net of taxes | — | 59 | ||||||
Net income available to common shareholders before cumulative effect of accounting change | 34,098 | 48,597 | ||||||
Cumulative effect of accounting change, net of tax | — | 130 | ||||||
Net income available to common shareholders after cumulative effect of accounting change | $ | 34,098 | $ | 48,727 | ||||
Weighted average common shares outstanding | 50,568 | 49,997 | ||||||
Weighted average potential common shares: | ||||||||
Stock options | 810 | 879 | ||||||
CODES | — | 984 | ||||||
Total weighted average common & potential common shares outstanding | 51,378 | 51,860 | ||||||
(3) Net interest income (on a tax equivalent basis) for the period, annualized and divided by average quarterly 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) | $ | 147,367 | $ | 162,726 | ||||
Operating Expenses (Excluding ABD & other ABD expenses paid by holding company) | $ | 107,081 | $ | 101,329 | ||||
(7) Restated YTD 2006 to reflect adoption of SEC Staff Accounting Bulletin No.108 effective January 1, 2006. |
| |||||||
(8) On June 30, 2007, the Company redeemed its outstanding convertible Series B Preferred Stock which had a carrying value of $102.6 million at its stated value of $50.00 per share for total consideration of $100.5 million. The $2.0 million excess of the carrying value of the redeemed shares over the consideration paid was recorded as an adjustment to paid-in-capital, which is included in Common Stock. This $2.0 million adjustment to paid-in-capital is also included in income available to common shareholders for purposes of determining the net income per common share. |
|
Greater Bay Bancorp Reports Financial Results for the Second Quarter of 2007
August 7, 2007
Page 8 of 12
GREATER BAY BANCORP
JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA AND RATIOS:
Jun 30 2007 | Mar 31 2007 | Dec 31 2006 | Restated(5) Sep 30 2006 | Restated(5) Jun 30 2006 | ||||||||||||||||
Cash and cash equivalents | $ | 134,464 | $ | 139,083 | $ | 170,365 | $ | 160,572 | $ | 198,716 | ||||||||||
Fed funds sold | 20,000 | 161,000 | — | — | 36,000 | |||||||||||||||
Securities | 1,369,589 | 1,435,692 | 1,543,097 | 1,572,109 | 1,565,732 | |||||||||||||||
Loans and leases: | ||||||||||||||||||||
Commercial | 2,426,776 | 2,299,362 | 2,245,549 | 2,136,235 | 2,072,334 | |||||||||||||||
Term real estate - commercial | 1,492,253 | 1,468,160 | 1,403,631 | 1,423,090 | 1,394,518 | |||||||||||||||
Total commercial | 3,919,029 | 3,767,522 | 3,649,180 | 3,559,325 | 3,466,852 | |||||||||||||||
Real estate construction and land | 656,405 | 649,009 | 729,871 | 753,416 | 762,409 | |||||||||||||||
Residential mortgage | 258,479 | 274,329 | 279,615 | 277,038 | 275,332 | |||||||||||||||
Real estate other | 144,463 | 146,697 | 173,271 | 163,077 | 164,133 | |||||||||||||||
Consumer and other | 66,119 | 62,026 | 68,698 | 79,131 | 101,821 | |||||||||||||||
Deferred costs and fees, net | 7,709 | 6,254 | 5,206 | 4,278 | 4,066 | |||||||||||||||
Total loans and leases, net of deferred costs and fees | 5,052,204 | 4,905,837 | 4,905,841 | 4,836,265 | 4,774,613 | |||||||||||||||
Allowance for loan and lease losses | (64,110 | ) | (65,950 | ) | (68,025 | ) | (71,323 | ) | (71,689 | ) | ||||||||||
Total loans and leases, net | 4,988,094 | 4,839,887 | 4,837,816 | 4,764,942 | 4,702,924 | |||||||||||||||
Goodwill | 246,016 | 246,016 | 246,016 | 242,687 | 243,343 | |||||||||||||||
Other intangible assets | 41,150 | 43,069 | 42,978 | 44,515 | 46,227 | |||||||||||||||
Other assets | 529,756 | 517,581 | 530,862 | 554,985 | 583,167 | |||||||||||||||
Total assets | $ | 7,329,069 | $ | 7,382,328 | $ | 7,371,134 | $ | 7,339,810 | $ | 7,376,109 | ||||||||||
Deposits: | ||||||||||||||||||||
Demand, noninterest-bearing | $ | 879,756 | $ | 953,808 | $ | 1,028,245 | $ | 980,050 | $ | 1,015,734 | ||||||||||
MMDA, NOW and savings | 2,527,705 | 2,679,239 | 2,614,349 | 2,613,387 | 2,734,656 | |||||||||||||||
Time deposits, $100,000 and over | 805,311 | 911,915 | 892,048 | 784,557 | 776,712 | |||||||||||||||
Other time deposits | 1,086,650 | 763,975 | 722,541 | 681,104 | 495,131 | |||||||||||||||
Total deposits | 5,299,422 | 5,308,937 | 5,257,183 | 5,059,098 | 5,022,233 | |||||||||||||||
Other borrowings | 826,240 | 791,670 | 825,837 | 994,044 | 970,390 | |||||||||||||||
Subordinated debt | 175,774 | 180,929 | 180,929 | 180,929 | 287,631 | |||||||||||||||
Other liabilities | 258,201 | 237,061 | 254,812 | 256,545 | 268,899 | |||||||||||||||
Total liabilities | 6,559,637 | 6,518,597 | 6,518,761 | 6,490,616 | 6,549,153 | |||||||||||||||
Minority interest: | ||||||||||||||||||||
Preferred stock of real estate investment trust subsidiaries | 12,943 | 12,902 | 12,861 | 12,821 | 12,780 | |||||||||||||||
Convertible preferred stock | — | 103,069 | 103,094 | 103,094 | 103,096 | |||||||||||||||
Common shareholders’ equity (1) | 756,489 | 747,760 | 736,418 | 733,279 | 711,080 | |||||||||||||||
Total shareholders’ equity (1) | 756,489 | 850,829 | 839,512 | 836,373 | 814,176 | |||||||||||||||
Total liabilities and total equity | $ | 7,329,069 | $ | 7,382,328 | $ | 7,371,134 | $ | 7,339,810 | $ | 7,376,109 | ||||||||||
RATIOS: | ||||||||||||||||||||
Loan growth, current quarter to prior year quarter | 5.81 | % | 3.72 | % | 3.76 | % | 3.19 | % | 0.72 | % | ||||||||||
Loan growth, current quarter to prior quarter, annualized | 11.97 | % | 0.00 | % | 5.71 | % | 5.12 | % | 3.81 | % | ||||||||||
Loan growth, YTD | 6.02 | % | 0.00 | % | 3.76 | % | 3.06 | % | 1.99 | % | ||||||||||
Core loan growth, current quarter to prior year quarter (2) | 6.59 | % | 4.37 | % | 4.45 | % | 3.90 | % | 1.32 | % | ||||||||||
Core loan growth, current quarter to prior quarter, annualized (2) | 13.09 | % | 0.34 | % | 6.41 | % | 5.91 | % | 4.47 | % | ||||||||||
Core loan growth, YTD (2) | 6.76 | % | 0.34 | % | 4.45 | % | 3.73 | % | 2.58 | % | ||||||||||
Deposit growth, current quarter to prior year quarter | 5.52 | % | 3.92 | % | 3.93 | % | 0.87 | % | 2.93 | % | ||||||||||
Deposit growth, current quarter to prior quarter, annualized | -0.72 | % | 3.99 | % | 15.53 | % | 2.91 | % | -6.79 | % | ||||||||||
Deposit growth, YTD | 1.62 | % | 3.99 | % | 3.93 | % | 0.01 | % | -1.45 | % | ||||||||||
Core deposit growth, current quarter to prior year quarter (3) | -7.56 | % | -4.58 | % | -6.79 | % | -10.48 | % | -6.63 | % | ||||||||||
Core deposit growth, current quarter to prior quarter, annualized (3) | -31.62 | % | 1.11 | % | 15.29 | % | -14.43 | % | -19.72 | % | ||||||||||
Core deposit growth, YTD (3) | -15.39 | % | 1.11 | % | -6.79 | % | -13.71 | % | -13.84 | % | ||||||||||
Revenue growth, current quarter to prior year quarter (4) | -4.04 | % | -5.79 | % | -4.38 | % | -2.66 | % | 2.46 | % | ||||||||||
Revenue growth, current quarter to prior quarter, annualized (4) | -2.45 | % | 10.22 | % | -12.53 | % | -10.93 | % | -9.71 | % | ||||||||||
Net interest income growth, current quarter to prior year quarter | -9.69 | % | -10.43 | % | -5.69 | % | -6.21 | % | 0.63 | % | ||||||||||
Net interest income growth, current quarter to prior quarter, annualized | -3.02 | % | -25.28 | % | 0.72 | % | -12.41 | % | -6.28 | % |
(1) The Company adopted FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” or FIN 48 effective January 1, 2007 and as a result recognized a $4.5 million reserve for uncertain tax positions which was recorded as a reduction to the beginning balance of retained earnings as of January 1, 2007. | ||||||||||
(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. | ||||||||||
(4) Revenue is the sum of net interest income before (reversal of) / provision for credit losses and total non-interest income. | ||||||||||
(5) Restated Q2 and Q3 2006 to reflect adoption of SEC Staff Accounting Bulletin No. 108 effective January 1, 2006. |
Greater Bay Bancorp Reports Financial Results for the Second Quarter of 2007
August 7, 2007
Page 9 of 12
GREATER BAY BANCORP
JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
Three months ended | ||||||||||||||||||||
June 30, 2007 | March 31, 2007 | |||||||||||||||||||
Tax-Equivalent Basis (1) | Average balance (2) | Interest | Average yield / rate | Average balance (2) | Interest | Average yield / rate | ||||||||||||||
INTEREST-EARNING ASSETS: | ||||||||||||||||||||
Fed funds sold | $ | 58,077 | $ | 763 | 5.27 | % | $ | 63,223 | $ | 815 | 5.23 | % | ||||||||
Securities: | ||||||||||||||||||||
Taxable | 1,347,838 | 15,365 | 4.57 | % | 1,441,326 | 16,588 | 4.67 | % | ||||||||||||
Tax-exempt (1) | 90,848 | 1,554 | 6.86 | % | 92,071 | 1,582 | 6.97 | % | ||||||||||||
Other short-term (3) | 9,363 | 86 | 3.70 | % | 8,424 | 84 | 4.03 | % | ||||||||||||
Loans and leases (4) | 4,948,695 | 97,976 | 7.94 | % | 4,869,674 | 94,910 | 7.90 | % | ||||||||||||
Total interest-earning assets | 6,454,821 | 115,744 | 7.19 | % | 6,474,718 | 113,979 | 7.14 | % | ||||||||||||
Noninterest-earning assets | 858,236 | — | 866,562 | — | ||||||||||||||||
Total assets | $ | 7,313,057 | 115,744 | $ | 7,341,280 | 113,979 | ||||||||||||||
INTEREST-BEARING LIABILITIES: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
MMDA, NOW and Savings | $ | 2,609,041 | 20,195 | 3.10 | % | $ | 2,603,938 | 18,810 | 2.93 | % | ||||||||||
Time deposits over $100,000 | 858,287 | 10,856 | 5.07 | % | 877,491 | 10,881 | 5.03 | % | ||||||||||||
Other time deposits | 814,071 | 9,991 | 4.92 | % | 747,657 | 9,072 | 4.92 | % | ||||||||||||
Total interest-bearing deposits | 4,281,399 | 41,042 | 3.84 | % | 4,229,086 | 38,763 | 3.72 | % | ||||||||||||
Short-term borrowings | 347,514 | 4,624 | 5.34 | % | 369,591 | 4,489 | 4.93 | % | ||||||||||||
Subordinated debt | 176,850 | 3,645 | 8.27 | % | 180,929 | 3,711 | 8.32 | % | ||||||||||||
Other long-term borrowings | 499,732 | 6,724 | 5.40 | % | 494,409 | 6,609 | 5.42 | % | ||||||||||||
Total interest-bearing liabilities | 5,305,495 | 56,035 | 4.24 | % | 5,274,016 | 53,572 | 4.12 | % | ||||||||||||
Noninterest-bearing deposits | 901,588 | 948,232 | ||||||||||||||||||
Other noninterest-bearing liabilities | 263,096 | 256,393 | ||||||||||||||||||
Minority Interest: Preferred stock of real estate investment trust subsidiaries | 12,917 | 12,876 | ||||||||||||||||||
Shareholders’ equity | 829,961 | 849,763 | ||||||||||||||||||
Total shareholders’ equity and liabilities | $ | 7,313,057 | 56,035 | $ | 7,341,280 | 53,572 | ||||||||||||||
Net interest income, on a tax-equivalent basis (1) | 59,709 | 60,407 | ||||||||||||||||||
Net interest margin (5) | 3.71 | % | 3.78 | % | ||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||
Adjustment for tax-equivalent basis | (253 | ) | (500 | ) | ||||||||||||||||
Net interest income, as reported | $ | 59,456 | $ | 59,907 | ||||||||||||||||
(1) | Income from tax-exempt securities issued by state and local governments or authorities, is adjusted by an increment that equatestax-exempt income to tax equivalent basis (assuming a 35% federal income tax rate). |
(2) | Nonaccrual loans are included in the average balance. |
(3) | Includes average interest-earning deposits in other financial institutions. |
(4) | Amortization of deferred costs and fees, net, resulted in an increase of interest income on loans by $771,000 and $592,000, for the three monthsended June 30, 2007 and March 31, 2007, respectively. |
(5) | Net interest margin during the period equals (a) the difference between tax-equivalent interest income on interest-earning assets and theinterest expense on interest-bearing liabilities, divided by (b) average interest-earning assets for the period, annualized. |
Greater Bay Bancorp Reports Financial Results for the Second Quarter of 2007
August 7, 2007
Page 10 of 12
GREATER BAY BANCORP
JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
Three months ended | ||||||||||||||||||||
June 30, 2007 | June 30, 2006 | |||||||||||||||||||
Tax-Equivalent Basis (1) | Average balance (2) | Interest | Average yield / rate | Average balance (2) | Interest | Average yield / rate | ||||||||||||||
INTEREST-EARNING ASSETS: | ||||||||||||||||||||
Fed funds sold | $ | 58,077 | $ | 763 | 5.27 | % | $ | 10,791 | $ | 128 | 4.77 | % | ||||||||
Securities: | ||||||||||||||||||||
Taxable | 1,347,838 | 15,365 | 4.57 | % | 1,433,756 | 16,030 | 4.48 | % | ||||||||||||
Tax-exempt (1) | 90,848 | 1,554 | 6.86 | % | 86,323 | 1,543 | 7.16 | % | ||||||||||||
Other short-term (3) | 9,363 | 86 | 3.70 | % | 9,348 | 46 | 1.99 | % | ||||||||||||
Loans and leases (4) | 4,948,695 | 97,976 | 7.94 | % | 4,705,859 | 91,074 | 7.76 | % | ||||||||||||
Total interest-earning assets | 6,454,821 | 115,744 | 7.19 | % | 6,246,077 | 108,821 | 6.99 | % | ||||||||||||
Noninterest-earning assets | 858,236 | — | 894,432 | — | ||||||||||||||||
Total assets | $ | 7,313,057 | 115,744 | $ | 7,140,509 | 108,821 | ||||||||||||||
INTEREST-BEARING LIABILITIES: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
MMDA, NOW and Savings | $ | 2,609,041 | 20,195 | 3.10 | % | $ | 2,807,337 | 15,094 | 2.16 | % | ||||||||||
Time deposits over $100,000 | 858,287 | 10,856 | 5.07 | % | 780,415 | 8,466 | 4.35 | % | ||||||||||||
Other time deposits | 814,071 | 9,991 | 4.92 | % | 414,765 | 4,381 | 4.24 | % | ||||||||||||
Total interest-bearing deposits | 4,281,399 | 41,042 | 3.84 | % | 4,002,517 | 27,941 | 2.80 | % | ||||||||||||
Short-term borrowings | 347,514 | 4,624 | 5.34 | % | 262,439 | 2,947 | 4.50 | % | ||||||||||||
Subordinated debt | 176,850 | 3,645 | 8.27 | % | 224,755 | 4,867 | 8.68 | % | ||||||||||||
Other long-term borrowings | 499,732 | 6,724 | 5.40 | % | 547,494 | 6,732 | 4.93 | % | ||||||||||||
Total interest-bearing liabilities | 5,305,495 | 56,035 | 4.24 | % | 5,037,205 | 42,487 | 3.38 | % | ||||||||||||
Noninterest-bearing deposits | 901,588 | 1,013,577 | ||||||||||||||||||
Other noninterest-bearing liabilities | 263,096 | 270,030 | ||||||||||||||||||
Minority Interest: Preferred stock of real estate investment trust subsidiaries | 12,917 | 12,756 | ||||||||||||||||||
Shareholders’ equity | 829,961 | 806,941 | ||||||||||||||||||
Total shareholders’ equity and liabilities | $ | 7,313,057 | 56,035 | $ | 7,140,509 | 42,487 | ||||||||||||||
Net interest income, on a tax-equivalent basis (1) | 59,709 | 66,334 | ||||||||||||||||||
Net interest margin (5) | 3.71 | % | 4.26 | % | ||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||
Adjustment for tax-equivalent basis | (253 | ) | (500 | ) | ||||||||||||||||
Net interest income, as reported | $ | 59,456 | $ | 65,834 | ||||||||||||||||
(1) | 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). |
(2) | Nonaccrual loans are included in the average balance. |
(3) | Includes average interest-earning deposits in other financial institutions. |
(4) | Amortization of deferred costs and fees, net, resulted in an increase of interest income on loans by $771,000 and $602,000 for the three months ended June 30, 2007 and June 30, 2006, 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 Financial Results for the Second Quarter of 2007
August 7, 2007
Page 11 of 12
GREATER BAY BANCORP
JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars in 000’s)
SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
Six months ended | ||||||||||||||||||||
June 30, 2007 | June 30, 2006 | |||||||||||||||||||
Tax-Equivalent Basis (1) | Average balance (2) | Interest | Average yield / rate | Average balance (2) | Interest | Average yield / rate | ||||||||||||||
INTEREST-EARNING ASSETS: | ||||||||||||||||||||
Fed funds sold | $ | 60,635 | $ | 1,578 | 5.25 | % | $ | 11,533 | $ | 260 | 4.55 | % | ||||||||
Securities: | ||||||||||||||||||||
Taxable | 1,394,324 | 31,953 | 4.62 | % | 1,429,572 | 31,653 | 4.47 | % | ||||||||||||
Tax-exempt (1) | 91,456 | 3,137 | 6.92 | % | 84,470 | 3,035 | 7.24 | % | ||||||||||||
Other short-term (3) | 8,896 | 170 | 3.86 | % | 9,554 | 81 | 1.72 | % | ||||||||||||
Loans and leases (4) | 4,909,402 | 192,885 | 7.92 | % | 4,713,403 | 178,294 | 7.63 | % | ||||||||||||
Total interest-earning assets | 6,464,713 | 229,724 | 7.17 | % | 6,248,532 | 213,323 | 6.88 | % | ||||||||||||
Noninterest-earning assets | 862,377 | — | 889,779 | — | ||||||||||||||||
Total assets | $ | 7,327,090 | 229,724 | $ | 7,138,311 | 213,323 | ||||||||||||||
INTEREST-BEARING LIABILITIES: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
MMDA, NOW and Savings | $ | 2,606,503 | 39,005 | 3.02 | % | $ | 2,878,394 | 29,165 | 2.04 | % | ||||||||||
Time deposits over $100,000 | 867,836 | 21,793 | 5.06 | % | 768,401 | 15,789 | 4.14 | % | ||||||||||||
Other time deposits | 781,048 | 19,007 | 4.91 | % | 338,214 | 6,748 | 4.02 | % | ||||||||||||
Total interest-bearing deposits | 4,255,387 | 79,805 | 3.78 | % | 3,985,009 | 51,702 | 2.62 | % | ||||||||||||
Short-term borrowings | 358,491 | 9,112 | 5.13 | % | 275,389 | 5,930 | 4.34 | % | ||||||||||||
CODES | — | — | 0.00 | % | 37,343 | 101 | 0.55 | % | ||||||||||||
Subordinated debt | 178,878 | 7,356 | 8.29 | % | 217,573 | 9,424 | 8.73 | % | ||||||||||||
Other long-term borrowings | 497,086 | 13,334 | 5.41 | % | 511,107 | 12,464 | 4.92 | % | ||||||||||||
Total interest-bearing liabilities | 5,289,842 | 109,607 | 4.18 | % | 5,026,421 | 79,621 | 3.19 | % | ||||||||||||
Noninterest-bearing deposits | 924,781 | 1,027,613 | ||||||||||||||||||
Other noninterest-bearing liabilities | 259,763 | 275,984 | ||||||||||||||||||
Minority Interest: Preferred stock of real estate investment trust subsidiaries | 12,897 | 12,735 | ||||||||||||||||||
Shareholders’ equity | 839,807 | 795,558 | ||||||||||||||||||
Total shareholders’ equity and liabilities | $ | 7,327,090 | 109,607 | $ | 7,138,311 | 79,621 | ||||||||||||||
Net interest income, on a tax-equivalent basis (1) | 120,117 | 133,702 | ||||||||||||||||||
Net interest margin (5) | 3.75 | % | 4.31 | % | ||||||||||||||||
Reconciliation to reported net interest income: | ||||||||||||||||||||
Adjustment for tax-equivalent basis | (754 | ) | (987 | ) | ||||||||||||||||
Net interest income, as reported | $ | 119,363 | $ | 132,715 | ||||||||||||||||
(1) | 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). |
(2) | Nonaccrual loans are included in the average balance. |
(3) | Includes average interest-earning deposits in other financial institutions. |
(4) | Amortization of deferred costs and fees, net, resulted in an increase of interest income on loans by $1,363,000 and $847,000 for the six months ended June 30, 2007 and June 30, 2006, 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 Financial Results for the Second Quarter of 2007
August 7, 2007
Page 12 of 12
GREATER BAY BANCORP
JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED)
(Dollars and shares in 000’s, except per share data)
SELECTED CONSOLIDATED CREDIT QUALITY DATA:
Jun 30 2007 | Mar 31 2007 | Dec 31 2006 | Sep 30 2006 | Jun 30 2006 | ||||||||||||||||
Nonperforming assets | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Matsco/GBC | $ | 8,169 | $ | 9,160 | $ | 7,583 | $ | 8,323 | $ | 7,257 | ||||||||||
SBA | 6,252 | 6,456 | 5,576 | 2,881 | 4,536 | |||||||||||||||
Other | 5,280 | 7,769 | 8,486 | 6,458 | 4,775 | |||||||||||||||
Total commercial | 19,701 | 23,385 | 21,645 | 17,662 | 16,568 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial | 2,306 | 6,180 | 7,173 | 10,939 | 14,763 | |||||||||||||||
Construction and land | 1,980 | 1,980 | 930 | 323 | 323 | |||||||||||||||
Other | — | — | — | — | 3 | |||||||||||||||
Total real estate | 4,286 | 8,160 | 8,103 | 11,262 | 15,089 | |||||||||||||||
Consumer and other | 189 | 74 | 117 | 139 | 611 | |||||||||||||||
Total nonaccrual loans | 24,176 | 31,619 | 29,865 | 29,063 | 32,268 | |||||||||||||||
OREO | — | — | — | — | — | |||||||||||||||
Other nonperforming assets | 215 | 435 | 382 | 603 | 361 | |||||||||||||||
Total nonperforming assets | $ | 24,391 | $ | 32,054 | $ | 30,247 | $ | 29,666 | $ | 32,629 | ||||||||||
Net loan charge-offs (recoveries) (1) | $ | 1,755 | $ | 1,122 | $ | 3,192 | $ | 223 | $ | 2,662 | ||||||||||
Ratio of allowance for loan and lease losses to: | ||||||||||||||||||||
End of period loans | 1.27 | % | 1.35 | % | 1.39 | % | 1.48 | % | 1.50 | % | ||||||||||
Total nonaccrual loans | 265.2 | % | 208.6 | % | 227.8 | % | 245.4 | % | 222.2 | % | ||||||||||
Ratio of quarter (reversal of) / provision for credit losses to quarter average loans, annualized | -0.03 | % | -0.09 | % | -0.03 | % | -0.04 | % | -0.16 | % | ||||||||||
Total nonaccrual loans to total loans | 0.48 | % | 0.64 | % | 0.61 | % | 0.60 | % | 0.68 | % | ||||||||||
Total nonperforming assets to total assets | 0.33 | % | 0.43 | % | 0.41 | % | 0.40 | % | 0.44 | % | ||||||||||
Ratio of quarterly net loan charge-offs to average loans, annualized | 0.14 | % | 0.09 | % | 0.26 | % | 0.02 | % | 0.23 | % | ||||||||||
Ratio of YTD net loan charge-offs to YTD average loans | 0.12 | % | 0.09 | % | 0.13 | % | 0.08 | % | 0.12 | % | ||||||||||
(1) Net loan charge-offs are loan charge-offs net of recoveries. Q3 2006 includes an insurance recovery of $1.6 million related to a previously charged-off loan. |
| |||||||||||||||||||
SELECTED QUARTERLY CAPITAL RATIOS AND DATA: |
| |||||||||||||||||||
Jun 30 2007 | Mar 31 2007 | Dec 31 2006 | Sep 30 2006 | Jun 30 2006 | ||||||||||||||||
Tier 1 leverage ratio | 9.64 | % | 10.92 | % | 10.63 | % | 10.63 | % | 12.07 | % | ||||||||||
Tier 1 risk-based capital ratio | 10.90 | % | 12.61 | % | 12.26 | % | 12.15 | % | 13.49 | % | ||||||||||
Total risk-based capital ratio | 12.04 | % | 13.79 | % | 13.47 | % | 13.40 | % | 14.93 | % | ||||||||||
Total equity to assets ratio | 10.32 | % | 11.53 | % | 11.39 | % | 11.40 | % | 11.04 | % | ||||||||||
Common equity to assets ratio | 10.32 | % | 10.13 | % | 9.99 | % | 9.99 | % | 9.64 | % | ||||||||||
Tier I capital | $ | 676,078 | $ | 769,415 | $ | 755,860 | $ | 748,071 | $ | 824,154 | ||||||||||
Total risk-based capital | $ | 746,311 | $ | 841,821 | $ | 830,461 | $ | 825,036 | $ | 911,802 | ||||||||||
Risk weighted assets | $ | 6,201,016 | $ | 6,103,632 | $ | 6,166,011 | $ | 6,155,489 | $ | 6,108,101 | ||||||||||
NON-GAAP RATIOS (1): | ||||||||||||||||||||
Tangible common equity to tangible assets (2) | 6.66 | % | 6.47 | % | 6.32 | % | 6.32 | % | 5.95 | % | ||||||||||
Tangible common book value per common share (3) | $ | 9.17 | $ | 8.99 | $ | 8.78 | $ | 8.74 | $ | 8.28 | ||||||||||
Common book value per common share (4) | $ | 14.79 | $ | 14.65 | $ | 14.46 | $ | 14.36 | $ | 13.97 | ||||||||||
Total common shares outstanding | 51,159 | 51,044 | 50,938 | 51,047 | 50,917 | |||||||||||||||
(1) The following table provides a reconciliation of common equity to tangible common equity and total assets to tangible assets: |
| |||||||||||||||||||
Common shareholders’ equity | $ | 756,489 | $ | 747,760 | $ | 736,418 | $ | 733,279 | $ | 711,080 | ||||||||||
Less: goodwill and other Intangible assets | (287,166 | ) | (289,085 | ) | (288,994 | ) | (287,202 | ) | (289,570 | ) | ||||||||||
Tangible common equity | $ | 469,323 | $ | 458,675 | $ | 447,424 | $ | 446,077 | $ | 421,510 | ||||||||||
Total assets | $ | 7,329,069 | $ | 7,382,328 | $ | 7,371,134 | $ | 7,339,810 | $ | 7,376,109 | ||||||||||
Less: goodwill and other intangible assets | (287,166 | ) | (289,085 | ) | (288,994 | ) | (287,202 | ) | (289,570 | ) | ||||||||||
Tangible assets | $ | 7,041,903 | $ | 7,093,242 | $ | 7,082,140 | $ | 7,052,608 | $ | 7,086,539 | ||||||||||
(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. |
(4) | Computed as common shareholders’ equity divided by common shares outstanding. |