Exhibit 99.1
- ------------
January 29, 2002
FOR IMMEDIATE RELEASE
- ---------------------
MONTEREY BAY BANCORP, INC. ANNOUNCES:
FOURTH QUARTER AND FISCAL YEAR 2001 RESULTS;
DATE FOR 2002 ANNUAL MEETING OF STOCKHOLDERS;
RECORD DATE FOR VOTING AT THE 2002 ANNUAL MEETING OF STOCKHOLDERS
Common Stock Symbol: MBBC
NASDAQ National Market
Watsonville, CA. January 29, 2002. Monterey Bay Bancorp, Inc.
("Company"), the holding company for Monterey Bay Bank ("Bank"), today reported
net income of $1.14 million, equivalent to $0.33 diluted earnings per share, for
the fourth quarter ended December 31, 2001, compared to net income of $709
thousand, or $0.22 diluted earnings per share, for the same period in 2000. Net
income for the third quarter ended September 30, 2001 (the immediately preceding
quarter) was $1.06 million, equivalent to $0.31 diluted earnings per share.
For the year ended December 31, 2001, net income was $3.75 million,
equivalent to $1.12 diluted earnings per share. This compares to net income of
$2.52 million, or $0.81 diluted earnings per share, for the year 2000. The $3.75
million in 2001 net income was the highest annual level in the Company's
history. Return on average stockholders' equity increased from 6.24% in 2000 to
7.94% in 2001.
During the fourth quarter of 2001, the Company continued the
implementation of its strategic plan of transforming the Bank into a community
focused commercial bank serving the financial needs of consumers and businesses
throughout the Greater Monterey Bay Area. Key accomplishments during the fourth
quarter of 2001 included:
o the continued expansion of the Company's commercial banking
business
o the hiring of a new Director of Information Technology with
over 20 years of banking experience
o several other key hires, including an additional investment
sales representative with extensive local experience and a new
branch sales manager with longstanding ties to the communities
served by the Bank
o the ongoing implementation of technology complementary to the
new core processing system installed in March 2001
o the attainment of record levels of total assets, loans,
deposits, and stockholder's equity at December 31, 2001
o the attraction of several new market makers to the Company's
common stock
In addition, the $1.14 million in earnings during the fourth quarter of 2001 was
the highest of any quarter in the Company's history.
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Monterey Bay Bancorp, Inc. Page 2
Press Release
January 29, 2002
The Company's 2001 net income was impacted by (pre-tax) operating costs
for the conversion of the Company's core data processing system ($447 thousand)
and legal and other expenses associated with the now concluded arbitration of
claims by a former executive ($284 thousand). Neither of these factors impacted
the Company's results for the fourth quarter of 2001.
Net interest income increased from $4.5 million and $18.0 million
during the fourth quarter and the year 2000, respectively, to $5.2 million and
$19.7 million during the same periods in 2001 due to both expanded spreads and
greater average balances of interest earning assets and liabilities. The
Company's ratio of net interest income to average total assets was 3.92% and
3.83% for the fourth quarter and year ended December 31, 2001, compared to 3.76%
and 3.79% during the same periods in 2000. The increased spreads in part stemmed
from the Bank's continued implementation of its strategic plan to transform a 76
year old savings & loan into a community focused commercial bank.
The ratio of net interest income to average total assets increased from
3.79% during the third quarter of 2001 to 3.92% during the fourth quarter of
2001 despite the Company's difficulty in decreasing NOW and Savings deposit
rates at the same pace as the declines in indices utilized for adjustable rate
loans. The Company's NOW and Savings deposit rates were already at low nominal
levels before the significant interest rate cuts implemented by the Federal
Reserve throughout 2001. The Company has moderated the impact of these factors
in 2001 through its proactive asset / liability management program and an
increase in the ratio of net loans to total assets.
The Company recorded a $325 thousand provision for loan losses during
the fourth quarter of 2001, down from $500 thousand during the fourth quarter of
2000. For the full year 2001, the Company recorded $1.4 million in provisions
for loan losses, compared to $2.2 million during the year 2000. Loan loss
provisions during 2001 were lower than those for the prior year due to:
o a lower level of net charge-offs in 2001 versus 2000
o a decreased amount of classified loans at December 31, 2001 versus the
prior year end
o a reduced concentration of relatively higher risk construction and land
loans in 2001 versus 2000
o the reduction in specific reserves of $600 thousand associated with a
commercial real estate construction loan that was collected in full
during the second quarter of 2001
o an increased concentration of relatively lower risk residential and
multifamily mortgages in 2001 versus 2000
The above factors more than offset the impact of a larger loan portfolio,
including growth in commercial business loans outstanding, which increased from
$3.1 million at December 31, 2000 to $8.8 million at December 31, 2001.
Continued expansion of this portfolio is central to the Company's strategic plan
of more completely meeting the financial needs of local businesses in the
Greater Monterey Bay Area.
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Monterey Bay Bancorp, Inc. Page 3
Press Release
January 29, 2002
Non-accrual loans at December 31, 2001 totaled $2.3 million, down from
$4.7 million at December 31, 2000. The payoff in full on two large non-accrual
loans in April 2001 accounted for most of the decline. Non-accrual loans
increased, however, from $1.0 million at September 30, 2001 primarily due to the
change in status of two loans. One of these loans is a residential mortgage with
a principal balance of $845 thousand and the other loan is a commercial real
estate mortgage with a principal balance of $851 thousand. The Company is in the
process of foreclosing on the underlying real estate collateral for both loans.
Based upon a review of comparable recent market sales, the Company, at this
time, does not anticipate incurring a loss on either of these two loans. The
Company had no foreclosed real estate at December 31, 2001.
The Company's ratio of loan loss reserves to loans outstanding
increased from 1.35% at December 31, 2000 to 1.41% at December 31, 2001. No
recoveries were realized during 2001, and charge-offs during the year, primarily
comprised of commercial business loans, totaled $99 thousand, approximately half
of which occurred during the fourth quarter.
During the fourth quarter of 2001, the Company increased its formula
general valuation reserve factors for hotel / motel real estate loans and its
"Business Express" small business loans due to the Company's estimate of a rise
in the inherent loss present in these portfolios. The general valuation reserve
factor was increased for hotel / motel loans due to the particular economic
difficulties being experienced by the hospitality industry stemming from the
national recession and reduced personal and business travel following September
11, 2001. At December 31, 2001, the Company had $30.8 million in hotel / motel
loans outstanding. The Company's Business Express portfolio experienced
historically high charge-off rates in 2001, in part stemming from the nature of
these loans, which were extended to smaller and less established local
businesses. These businesses often have less financial strength than larger and
/ or more established business, and thus have been disproportionately affected
by the US economic recession. At December 31, 2001, the Company had $543
thousand of Business Express loans outstanding.
The special residential loan pool that the Company purchased in 1998
has paid down significantly in 2001. This pool is comprised of loans that
present a borrower credit profile and / or a loan to value ratio outside of
(less favorable than) the Company's normal underwriting criteria. To mitigate
the credit risk for this portfolio, the Company obtained, at purchase, a
scheduled principal / scheduled interest loan servicing agreement from the
seller. This agreement also contains a guaranty by the seller to absorb any
principal losses on the portfolio in exchange for the seller's retention of a
portion of the loans' yield through loan servicing fees. While the seller has
met all its contractual obligations through January 20, 2002, the Company has
allocated certain reserves to this pool due to concerns regarding the potential
losses by the seller in honoring the guaranty, the present delinquency profile
of the pool, and the differential between loan principal balances and current
appraisals for foreclosed loans and loans in the process of foreclosure. The
original balance of the special residential loan pool in 1998 was $40.0 million,
which was paid down to $5.6 million at December 31, 2001. In January 2002, the
Company received approximately $528 thousand in additional principal repayments
associated with December activity.
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Monterey Bay Bancorp, Inc. Page 4
Press Release
January 29, 2002
Non-interest income totaled $538 thousand during the fourth quarter of
2001, down from $626 thousand during the same period in 2000. This decline was
due to the impact of lower commissions from sales of non-FDIC insured investment
products and reduced gains on security sales more than offsetting the effect of
increased customer service charges and higher mortgage banking income. The
Company did not sell any securities during the fourth quarter of 2001, and
reinvested principal payments received on mortgage related securities into
limited duration US Agency mortgage related securities in order to maintain
minimum collateral requirements for various deposits.
Non-interest income totaled $2.6 million in 2001, comparing favorably
to $2.3 million in 2000. The Company recorded $190 thousand in pre-tax gains on
security sales in 2001, versus a pre-tax loss of $55 thousand during 2000. As
discussed below, customer service charges and mortgage banking income also
increased in 2001 versus the prior year, offset by reduced loan servicing income
and decreased commissions from sales of non-FDIC insured investments.
Service charge income rose from $357 thousand and $1.3 million during
the fourth quarter and the year 2000 to $405 thousand and $1.7 million during
the same periods in 2001. This increase primarily resulted from the revised fee
and service charge schedule implemented with the new core processing system in
March, 2001.
Loan servicing income totaled $24 thousand and $101 thousand during the
three and twelve months ended December 31, 2001, compared to $28 thousand and
$118 thousand during the same periods in 2000. The Company continues to sell the
vast majority of its long term, fixed rate residential loan production into the
secondary market on a servicing released basis. As a result, the portfolio of
loans serviced for others is declining as loans pay off. At December 31, 2001,
the Company serviced $42.6 million in various types of loans for other
investors, compared to $62.0 million at December 31, 2000.
Commissions from sale of non-FDIC insured investments totaled $22
thousand and $244 thousand during the fourth quarter and year ended December 31,
2001, compared to $142 thousand and $676 thousand during the same periods in
2000. Less favorable general capital market conditions and investment staff
turnover contributed to the lower revenues in 2001 versus 2000.
Gains on the sale of loans increased from $8 thousand and $23 thousand
during the fourth quarter and year ended December 31, 2000 to $41 thousand and
$88 thousand during the same periods in 2001. The lower interest rate
environment in 2001 resulting from the eleven rate cuts implemented by the
Federal Reserve led to a strong residential loan refinance market, which in turn
has bolstered the Company's mortgage banking activity. The $41 thousand in
mortgage banking income during the three months ended December 31, 2001 was the
highest quarterly result in the Company's history.
Non-interest expense totaled $3.4 million and $14.4 million for the
fourth quarter and year ended December 31, 2001, compared to $3.4 million and
$13.7 million for the same periods in 2000. Total non-interest expense in 2001
was increased by costs for the data processing conversion ($447 thousand) and
legal and other expenses associated with the arbitration of claims by a former
executive ($284 thousand). As previously announced, the arbitration was
concluded during the fourth quarter of 2001 with no additional financial impact
to the Company beyond that recorded through September 30, 2001.
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Monterey Bay Bancorp, Inc. Page 5
Press Release
January 29, 2002
Throughout 2001, the Company has adjusted its staffing to advance the
strategic plan, primarily through the hiring of commercial loan officers and
professional bankers. Staffing has also increased in the data processing
function, coincident with the Company's shifting from an external service bureau
to in-house data processing. The change in the Company's systems environment
also impacted various other operating expenses. Data processing fees were much
lower in 2001 versus 2000, while equipment expense was higher due to the added
depreciation from the new hardware and software installed in 2001.
Costs for the data processing conversion included deconversion fees to
the prior service bureau, printing and postage costs for additional customer
communications, employee training and travel costs, and consulting fees for
technology professionals retained to assist with and speed the implementation of
the new system.
Compensation and employee benefit costs were also increased in 2001
versus 2000 for payments under certain incentive compensation plans. These
expenses rose in 2001 in conjunction with the Company's improved financial
performance. Costs for the Bank's employee stock ownership plan ("ESOP")
increased in 2001 versus 2000 because of the higher average price of Monterey
Bay Bancorp, Inc. common stock.
Advertising and promotion costs totaled $108 thousand in the fourth
quarter of 2001, up from $78 thousand during the same period in 2000.
Advertising during the fourth quarter of 2001 included local radio ads that
focused on attracting business customers through the communication of the Bank's
"relationship banking" approach to customer service. The Bank also continued to
promote its 2001 theme of "Monterey Bay Bank. Expect More. Get The Best." For
the year 2001, advertising and promotion costs were $249 thousand, down from
$361 thousand in 2000 primarily due to the Company's reducing certain marketing
efforts early in 2001 while the core processing conversion was being completed.
Total assets increased from $486.2 million at December 31, 2000 to a
record $537.4 million at December 31, 2001.
Cash & cash equivalents decreased from $25.2 million at December 31,
2000 to $13.1 million at December 31, 2001 due to the Company's using cash
equivalents to fund an expansion in the loan portfolio.
Investment and mortgage backed securities decreased from $50.3 million
at December 31, 2000 to $37.9 million at December 31, 2001. During 2001, the
Company has utilized cash flows from sales and principal payments on mortgage
related securities to fund an increase in the loan portfolio.
Loans held for sale totaled $713 thousand at December 31, 2001. The
Company sells most of its long term, fixed rate residential mortgage production
into the secondary market on a servicing released basis, and purchases more
interest rate sensitive loans as part of its interest rate risk management
program.
Loans held for investment, net, increased from $391.8 million at
December 31, 2000 to a record $465.9 million at December 31, 2001. The increase
resulted from a combination of strong internal loan originations and from pool
purchases of various types of California real estate loans. Net loans as a
percentage of total assets increased from 80.6% at December 31, 2000 to 86.8% at
December 31, 2001, in conjunction with the Company's strategy of supporting its
interest margin, fostering economic activity in its local communities, and
effectively utilizing the Bank's capital.
9
Monterey Bay Bancorp, Inc. Page 6
Press Release
January 29, 2002
While just 1.8% of gross loans outstanding at December 31, 2001, the
Company's commercial business lending gained momentum during the fourth quarter
of 2001, ending the year with a record loan pipeline. The new commercial banking
relationship officers hired during 2001 had a positive impact in the fourth
quarter of the year, generating a rise in deposit balances in addition to the
expansion in the business loan portfolio.
Premises and equipment, net, increased from $7.4 million at December
31, 2000 to $7.6 million at December 31, 2001 primarily due to hardware and
software purchases in support of the new core processing system.
Deposits increased from $407.8 million at December 31, 2000 to a record
$432.3 million at December 31, 2001. The Company experienced strong growth in
money market deposits during the fourth quarter of 2001 due to a combination of
sales and marketing focus and the historically low interest rate environment's
leading certain customers to delay committing funds to term certificates of
deposit. Deposit growth during the fourth quarter of 2001 was, however,
restrained by certain competitors that conducted aggressive promotional
campaigns.
The Company continues to focus on attracting new transaction deposit
accounts in conjunction with its strategic plan, with the additional objective
of continuing to reduce the percentage of the deposit mix represented by
relatively higher cost certificates of deposit. Certificates of deposit declined
from 60.0% of total deposits at December 31, 2000 to 56.4% of total deposits at
December 31, 2001.
The Company's ratio of net loans to deposits was 107.92% at December
31, 2001. In 2002, the Company intends to actively manage this ratio by:
o introducing new deposit products and related services, including
Internet banking for businesses
o modifying staff incentive programs to more strongly focus on expanding
deposit relationships
o pursuing opportunities for additional branch locations
o directing a higher percentage of the advertising and promotion budget
to deposit generation
Borrowings increased from $32.6 million at December 31, 2000 to $53.8
million at December 31, 2001. During 2001, the Company has utilized Federal Home
Loan Bank ("FHLB") advances to fund some of the expansion in the loan portfolio.
All of the Company's FHLB advances at December 31, 2001 were fixed rate, fixed
term borrowings without call or put option features. During the fourth quarter
of 2001, the Company prepaid $10.0 million in FHLB advances due in the first
quarter of 2002 in order to extend the term structure of that debt in
conjunction with the Company's asset / liability management program.
Monterey Bay Bank continues to be in the highest regulatory capital
classification of "Well Capitalized", with capital levels significantly in
excess of regulatory requirements.
10
Monterey Bay Bancorp, Inc. Page 7
Press Release
January 29, 2002
Consolidated stockholders' equity increased from $43.8 million at
December 31, 2000 to a record $50.2 million at December 31, 2001 due to a
combination of:
o net income
o continued amortization of deferred stock compensation
o Directors receiving their fees in Company stock
o appreciation in the portfolio of securities classified as available for
sale
o the exercise of vested stock options
In addition, during the fourth quarter of 2001, the Company's Chief Executive
Officer and Chief Financial Officer elected to receive significant portions of
their 2001 incentive compensation in Company common stock rather than cash.
The Company did not conduct any share repurchases during 2001. However,
as previously announced during the fourth quarter of 2001, the Company's Board
of Directors has authorized a 114,035 share stock repurchase program. The
Company's tangible book value per share increased from $12.54 at December 31,
2000 to a record $14.08 at December 31, 2001.
The 2002 annual meeting of stockholders will take place on Thursday,
May 23, 2002 at 9:00 AM Pacific Time at the Watsonville Women's Club in
Watsonville, California. All stockholders are cordially invited to attend. The
Board of Directors has established Monday, March 25, 2002 as the Record Date for
voting at the 2002 annual meeting of stockholders.
In reviewing the most recent quarter, C. Edward Holden, the Company's
Chief Executive Officer and President, commented, "The Company realized five key
accomplishments this quarter. First, we continued implementing our strategy of
transforming the Bank into a community based financial services firm. Second,
the Company generated improved profitability versus prior periods, although
still trailing high performing peer institutions in various financial measures
including return on average stockholders' equity and efficiency ratio. Third,
the Company maintained a favorable credit profile, which we view as particularly
important during a national recession. Fourth, we achieved record levels of
loans, assets, deposits, and stockholder's equity; fueled by our focused efforts
to meet the financial needs of individuals, families, and businesses throughout
the Greater Monterey Bay Area. Fifth, and finally, we took several proactive
steps to augment stockholder value, including adding additional market makers
for the Company's common stock, increasing the use of stock based compensation
in lieu of cash compensation, announcing a stock repurchase authorization, and
pursuing an enhanced investment banking relationship in order to better support
and respond to our stockholders."
11
Monterey Bay Bancorp, Inc. Page 8
Press Release
January 29, 2002
Mr. Holden continued, "Our objectives for 2002 include continuing to
better utilize the significant new technology implemented at the Company this
year, further expanding commercial business lending, increasing the scope of
electronic financial services offered, and evaluating potential new sites for
branches in our local market area and loan production offices in California. We
want to expand with our local communities and encourage growth within those
communities by assisting our customers in achieving their financial objectives.
We begin the new year with the Company presenting an improved financial profile
versus prior years, a favorable pipeline of potential new business, and an
enhanced employee roster. While my enthusiasm for the Company remains vibrant,
my outlook must of course be tempered by the potential impacts of an economy in
recession, higher levels of unemployment, and continued business issues in the
technology sector which represents an important component of the California
economy. We continue to feel that the best approach in this type of economic
environment is the one core to our business strategy: fostering quality,
longstanding relationships with our customers."
McKenzie Moss, Chairman of the Board of Directors, commented "The Board
of Directors is pleased with the significant rise in the price of Monterey Bay
Bancorp's common stock during 2001, encompassing a shift from trading at a
discount to tangible book value per share to trading at a premium, even as we
generated a strong increase in tangible book value. The Board appreciates the
support of individual and institutional investors who have made the effort to
understand the strategic transformation occurring at the Company. We remain
focused on stockholder value, a focus demonstrated by both the Directors'
continuing to receive retainer fees in Company stock and by the numerous share
purchases by Directors and Officers throughout 2001. The Directors are active in
their support of the Company through the referral of new business and their
communication of appreciation for existing customers. We plan to continue these
efforts in 2002, thereby advancing the Company's strategic plan and achieving
our key goal of 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. The Bank operates 11 ATM's including two at remote
(non-branch) sites. The Bank also offers customer access via bilingual telephone
banking, Internet banking, and worldwide ATM networks. The Bank's deposits are
insured by the Federal Deposit Insurance Corporation ("FDIC") up to the maximum
allowed by law.
12
Monterey Bay Bancorp, Inc. Page 9
Press Release
January 29, 2002
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
economic, business, and real estate market conditions in the Company's market
areas, competition, regulatory actions, the possibility that the Company will
not be successful in achieving its strategic objectives, actions by investment
banking firms and significant stockholders, the performance and contributions of
new employees, expected loan payments and future collateral values, the
successful future utilization and efficacy of new technology, the impact of past
and potential future terrorist actions upon consumer confidence, income, and
spending, 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
President Treasurer
(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
--- financial data follows ---
13
MONTEREY BAY BANCORP, INC.
(NASDAQ: MBBC)
Consolidated Financial Highlights
Unaudited
(Dollars In Thousands)
December 31, December 31,
Financial Condition Data 2001 2000
- ------------------------------------------------------------ --------- ---------
Cash and cash equivalents $ 13,079 $ 25,159
Investment and mortgage backed securities available for sale 37,944 50,310
Loans held for sale 713 --
Loans receivable held for investment:
Residential one to four unit real estate loans 204,829 160,155
Multifamily five or more units real estate loans 103,854 76,727
Commercial and industrial real estate loans 109,988 102,322
Construction loans 38,522 59,052
Land loans 11,924 16,310
Other loans 15,823 9,379
--------- ---------
Sub-total gross loans held for investment 484,940 423,945
(Less) / Plus:
Undisbursed construction loan funds (12,621) (26,580)
Unamortized purchase premiums, net of purchase discounts 435 21
Deferred loan fees and costs, net (202) (202)
Allowance for loan losses (6,665) (5,364)
--------- ---------
Loans receivable held for investment, net 465,887 391,820
Investment in capital stock of the Federal Home Loan Bank 2,998 2,884
Accrued interest receivable 2,915 2,901
Premises and equipment, net 7,618 7,375
Core deposit intangibles, net 1,514 2,195
Real estate acquired via foreclosure, net -- --
Other assets 4,723 3,546
--------- ---------
Total assets $ 537,391 $ 486,190
========= =========
Non-interest bearing demand deposits $ 21,062 $ 17,065
Interest bearing NOW checking accounts 42,557 41,859
Savings accounts 19,127 16,503
Money market accounts 105,828 87,651
Certificates of deposit 243,765 244,710
--------- ---------
Total deposits 432,339 407,788
Borrowings 53,800 32,582
Other liabilities 1,090 1,983
--------- ---------
Total liabilities 487,229 442,353
--------- ---------
Stockholders' equity 50,162 43,837
--------- ---------
Total liabilities and stockholders' equity $ 537,391 $ 486,190
========= =========
14
MONTEREY BAY BANCORP, INC.
(NASDAQ: MBBC)
Consolidated Financial Highlights, Continued
Unaudited
(Dollars In Thousands Except Per Share Amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- --------------------------
Operating Data 2001 2000 2001 2000
- ---------------------------------------------------- --------- --------- --------- ---------
Interest income $ 9,267 $ 9,782 $ 38,731 $ 37,757
Interest expense 4,066 5,246 18,990 19,777
--------- --------- --------- ---------
Net interest income before provision for loan losses 5,201 4,536 19,741 17,980
Provision for loan losses 325 500 1,400 2,175
--------- --------- --------- ---------
Net interest income after provision for loan losses 4,876 4,036 18,341 15,805
--------- --------- --------- ---------
Non-interest income:
Gain (loss) on sale of securities, net -- 22 190 (55)
Commissions from sales of non-insured products 22 142 244 676
Customer service charges 405 357 1,688 1,306
Income from loan servicing 24 28 101 118
Gain on sale of loans 41 8 88 23
Other income 46 69 255 272
--------- --------- --------- ---------
Total non-interest income 538 626 2,566 2,340
--------- --------- --------- ---------
Non-interest expense:
Compensation and employee benefits 1,805 1,578 6,857 6,569
Occupancy and equipment 430 318 1,652 1,278
Deposit insurance premiums 50 48 198 188
Data processing fees 131 305 876 1,142
Legal and accounting expenses 138 172 863 661
Supplies, postage, telephone, and office 152 157 663 679
expenses
Advertising and promotion 108 78 249 361
Amortization of intangible assets 170 199 681 723
Other expense 436 563 2,330 2,075
--------- --------- --------- ---------
Total non-interest expense 3,420 3,418 14,369 13,676
--------- --------- --------- ---------
Income before income taxes 1,994 1,244 6,538 4,469
Provision for income taxes 851 535 2,787 1,946
--------- --------- --------- ---------
Net income $ 1,143 $ 709 $ 3,751 $ 2,523
========= ========= ========= =========
Shares applicable to basic earnings per share 3,318,113 3,129,897 3,275,303 3,110,910
Basic earnings per share $ 0.34 $ 0.23 $ 1.15 $ 0.81
========= ========= ========= =========
Shares applicable to diluted earnings per share 3,412,222 3,163,182 3,343,233 3,123,552
Diluted earnings per share $ 0.33 $ 0.22 $ 1.12 $ 0.81
========= ========= ========= =========
15
MONTEREY BAY BANCORP, INC.
(NASDAQ: MBBC)
Selected Ratios And Other Data
Unaudited
(Dollars In Thousands Except Per Share Amounts)
Three Months Ended December 31, Twelve Months Ended December 31,
------------------------------- --------------------------------
2001 2000 2001 2000
---- ---- ---- ----
Profitability Ratios [1]
- ------------------------------------------
Return on average assets 0.86% 0.59% 0.73% 0.53%
Return on average equity 9.17% 6.81% 7.94% 6.24%
Interest rate spread during the period 3.79% 3.50% 3.67% 3.54%
Net interest income / average total 3.92% 3.76% 3.83% 3.79%
assets
Net interest margin 4.12% 3.92% 4.04% 3.96%
Efficiency ratio 59.59% 66.21% 64.41% 67.30%
Other Information
- ------------------------------------------
Average total assets $ 531,389 $ 482,368 $ 515,351 $ 474,487
Average interest earning assets $ 505,110 $ 462,276 $ 488,796 $ 454,096
December 31, December 31,
2001 2000
---- ----
Asset Quality Information
- ------------------------------------------
Non-accrual loans $ 2,252 $ 4,666
Non-performing loans $ 2,252 $ 4,741
Real estate acquired via foreclosure -- --
Allowance for loan losses $ 6,665 $ 5,364
Allowance for loan losses /
loans outstanding 1.41% 1.35%
Allowance for loan losses /
non-accrual loans 295.96% 114.96%
Bank Regulatory Capital Ratios
- ------------------------------------------
Tangible capital ratio 8.24% 8.03%
Core capital ratio 8.24% 8.03%
Tier one risk based capital ratio 11.38% 11.03%
Total risk based capital ratio 12.64% 12.28%
Other Information
- ------------------------------------------
Full-service customer facilities 8 8
Number of ATM's 11 11
Loan to deposit ratio 107.92% 96.08%
Tangible book value per share $ 14.08 $ 12.54
Shares outstanding 3,456,097 3,321,210
- ------------------------------------------
<FN>
[1] All applicable quarterly ratios reflect annualized figures.
</FN>
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