Exhibit 99.1
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November 7, 2001
FOR IMMEDIATE RELEASE
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MONTEREY BAY BANCORP, INC. ANNOUNCES:
CONCLUSION OF BINDING ARBITRATION OF CLAIMS BY A FORMER EXECUTIVE
Common Stock Symbol: MBBC
NASDAQ National Market
Watsonville, CA. November 7, 2001. Monterey Bay Bancorp, Inc.
("Company"), the holding company for Monterey Bay Bank ("Bank"), today announced
the conclusion and results of the binding arbitration process conducted to
address claims by the former President and Chief Operating Officer regarding
payments due under his employment contracts. The arbitrator's final decision
required the Company to make total payments of approximately $40 thousand less
than the Company accrued for settlement of the former executive's claims in the
third quarter of 2000, when the matter commenced. The Company will record the
recapture of the $40 thousand excess accrual in the fourth quarter of 2001. This
recapture will, however, be offset by the final legal costs for the arbitration,
resulting in no material impact upon earnings for the fourth quarter of 2001.
Commenting on the conclusion of the arbitration, C. Edward Holden,
Company Chief Executive Officer and President, stated, "We are pleased to
conclude this lengthy process. We are also pleased that there will be no
additional financial impact to the Company. The conclusion of the arbitration
allows management to redirect resources to advancing the Company's strategic
plan of transforming the Bank into a community focused commercial bank and
enhancing stockholder value."
The Company's common stock is listed on the NASDAQ National Market
under the symbol "MBBC". The Company and the Bank are headquartered in
Watsonville, California. The Bank operates through its administrative offices in
Watsonville and eight full service branches located in the Greater Monterey Bay
Area of Central California.
This news release contains certain forward-looking statements that are
subject to various factors that could cause actual results to differ materially
from such statements. Such factors include, but are not limited to, the
possibility that the Company will not be successful in achieving its strategic
objectives, the performance and contributions of employees, and other factors
discussed in documents filed by the Company with the Securities and Exchange
Commission from time to time. The Company 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 further information contact:
C. Edward Holden Mark R. Andino
Chief Executive Officer or Chief Financial Officer
(831) 768 - 4840 (831) 768 - 4806
ed.holden@montereybaybank.com mark.andino@montereybaybank.com
General communication:
INFO@MONTEREYBAYBANK.COM
www.montereybaybank.com
Phone: (831) 768 - 4800
Fax: (831) 722 - 6794