EXHIBIT 99.1
Press Release Dated October 17, 2001
For Information Contact
-----------------------
At Greater Bay Bancorp: At Financial Relations Board:
David L. Kalkbrenner Christina Carrabino (general information)
President and CEO Stephanie Mishra (analyst contact)
(650) 614-5767 (415) 986-1591
Steven C. Smith
EVP, CAO and CFO
(650) 813-8222
FOR IMMEDIATE RELEASE
---------------------
GREATER BAY BANCORP REPORTS 16% INCREASE
IN THIRD QUARTER 2001 CORE EARNINGS
"28% Increase in Core Earnings Year Over Year"
PALO ALTO, CA, October 17, 2001 -- Greater Bay Bancorp (Nasdaq: GBBK), a $6.8
billion in assets financial services holding company, today announced results
for the third quarter and nine months ended September 30, 2001. Greater Bay
Bancorp's CORE EARNINGS, net income excluding nonrecurring warrant income and
-----------------------------------------
merger related expenses, for the third quarter of 2001 increased 16% to $21.3
-----------------------
million, or $0.48 per diluted share, compared to $18.3 million, or $0.42 per
diluted share, in the third quarter of 2000.
Based on CORE EARNINGS for the third quarter of 2001, Greater Bay Bancorp's
return on average equity was 21.68%, return on average assets was 1.30% and
efficiency ratio was 48.94%, while the third quarter of 2000 core earnings
resulted in a return on average equity of 24.14%, return on average assets of
1.61% and an efficiency ratio of 45.03%.
For the first nine months of 2001, Greater Bay Bancorp's CORE EARNINGS increased
28% to $63.7 million, or $1.45 per diluted share, compared to $49.7 million, or
$1.16 per diluted share, for the first nine months of 2000.
Based on CORE EARNINGS for the first nine months of 2001, Greater Bay Bancorp's
return on average equity was 23.30%, return on average assets was 1.47% and
efficiency ratio was 47.21%, while the first nine months of 2000 core earnings
resulted in a return on average equity of 23.25%, return on average assets of
1.57% and an efficiency ratio of 46.69%.
For the third quarter of 2001, NET INCOME increased to $21.4 million, or $0.49
per diluted share, compared to net income of $12.9 million, or $0.29 per diluted
share, for the third quarter of 2000. Net income for the third quarter of 2001
included $0.1 million in nonrecurring warrant income and zero merger related
expenses, compared to $1.6 million in nonrecurring warrant income and $7.0
million in merger related expenses for the third quarter of 2000.
For the first nine months of 2001, NET INCOME increased to $64.0 million, or
$1.46 per diluted share, compared to net income of $40.6 million, or $0.94 per
diluted share for the first nine months of 2000. Net income for the first nine
months of 2001 included $0.3 million in nonrecurring warrant income and zero in
merger related expenses, compared to $7.1 million in nonrecurring warrant income
and $16.2 million in merger related expenses for the first nine months of 2000.
At September 30, 2001, Greater Bay Bancorp's total assets were $6.8 billion, an
increase of 50% or $2.3 billion from September 30, 2000. Total loans grew 26% to
$3.9 billion, an increase of $804.4 million from September 30, 2000, while total
deposits increased to $4.3 billion, an increase of 10% or $389.0 million from
September 30, 2000.
Greater Bay Bancorp's allowance for loan losses was 2.31% of total loans at
September 30, 2001 and 2.18% at September 30, 2000, while its ratio of
non-performing assets to total assets was 0.32% at September 30, 2001, compared
to 0.35% at September 30, 2000. The allowance for loan losses was 418.20% of
total non-performing assets at September 30, 2001, compared to 430.84% at
September 30, 2000.
"Greater Bay Bancorp continues to post excellent operating results, even during
this period of a rapidly declining economy," stated David Kalkbrenner, President
and Chief Executive Officer of Greater Bay Bancorp. "The dramatic decline in
market interest rates has directly impacted the Company's net interest margin
and ultimately its net interest income; however, through continued prudent
expense management, strategic expense investments and client relationship
pricing, we have been able to continue to report quality earnings."
Mr. Kalkbrenner continued, "We continue to be vigilant in managing our credit
risk during this period of economic uncertainty and the results of that are
shown in our strong loan loss reserve position, low non-performing asset ratio
and very manageable net charge-off ratio. While our net charge-off ratio is
higher than prior years and higher than our original estimates, we are pleased
that during this challenging economic environment our relationship portfolios,
including commercial business and real estate loans, continue to perform well.
Our losses to date have been primarily in our shared national credit portfolio
which continues to shrink as a percentage of our total loan portfolio."
"Greater Bay Bancorp's lending philosophy has always focused on relationship
banking, which we believe allows for substantially better credit risk management
than can be attributed to transaction lending institutions," stated Mr.
Kalkbrenner. "To date, this has resulted in excellent credit metrics in our
portfolio. While we are pleased with the results, we continue to actively
monitor all segments of our portfolio, particularly the real estate segment. The
results of our ongoing review indicate that our conservative underwriting
standards and strong relationships at the time we funded the term and
construction real estate loans, continue to be reflected in the quality of the
portfolio. We currently do not see any significant deterioration in this
portfolio; however, we recognize that the economic downturn is more severe than
many people had anticipated. We will continue to be diligent in our credit
management, as well as new business underwriting, but we are pleased that our
core earnings supplemented by strong loan loss
reserves allowed Greater Bay Bancorp to continue to report quality earnings and
build long-term value for our shareholders."
The capital ratios of Greater Bay Bancorp and each of its subsidiary banks
continue to be above the well-capitalized guidelines established by the bank
regulatory agencies.
Merger with SJNB Financial Corp.
The previously announced merger transaction between Greater Bay Bancorp and SJNB
Financial Corp., San Jose, California is anticipated to close on October 23,
2001, subject to receipt of shareholder approvals. Regulatory approval for the
merger was received on October 3, 2001. On a pro forma basis, as if this merger
had been completed on September 30, 2001, the combined organization would have
had $7.5 billion in assets, $4.9 billion in deposits and 42 banking offices
covering the entire San Francisco Bay Area.
Forward-Looking Information
According to Mr. Kalkbrenner, "Based on current information, we believe our
previous guidance given for 2001 remains the same except for net charge-offs.
Due to the unprecedented slowing in our economy, net charge-offs will be in the
range of 55 basis points to 65 basis points for this year. Even with the higher
net loan charge-offs and substantial net interest margin compression, Greater
Bay remains comfortable with full year 2001 First Call analyst consensus
estimates of $1.92 to $1.93 per share, before the merger with SJNB. These
---------------------------
excellent operating results are expected to once again place Greater Bay in the
top 10% of its peer group when judged on the financial performance metrics of
return on equity, earnings per share and asset growth."
Looking forward to 2002, Mr. Kalkbrenner commented, "Greater Bay's overriding
performance goal is to continue to be in the top echelon of its peer group bank
competitors. Like most banks, we will also be impacted by the turbulent economic
environment but firmly believe our results will once again place Greater Bay in
the top group of performers for 2002, based on currently available mid-cap bank
analysts' estimates. We anticipate earnings growth of 11% to 17% with return on
equity being in excess of 20%. For a detailed review of our 2002 performance
goals, please review our Form 8-K which we filed today with the SEC."
Subsequent Events
Greater Bay Bancorp is currently in the process of establishing a real estate
investment Trust ("REIT") that will allow for flexibility in raising capital,
while also providing for a one-time capital gains tax loss carryback and a
one-time reduction in income tax expense. It is anticipated that the REIT will
be fully operational late in the fourth quarter of 2001 or early in the first
quarter of 2002. The impact on the Company's results of operations in
establishing the REIT is estimated to be a one-time reduction in income tax
expense of approximately $10 million to $12 million. Given the economic
uncertainty in the US economy, this one time benefit can be used either to
increase capital or, alternatively, to bolster balance sheet reserves.
Greater Bay Bancorp through its ten subsidiary banks, 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 and Peninsula Bank of Commerce, along with its operating
divisions, serves clients throughout Silicon Valley, San Francisco, the San
Francisco Peninsula, the East Bay Region, the North Bay Region and the Central
Coastal Region.
Greater Bay Bancorp's third quarter 2001 earnings conference call is scheduled
for October 17, 2001 at 8:00 am PDT. Investors have the opportunity to listen to
the conference call live on the Internet through Street Events at
http://www.streetevents.com. Investors should go to the Street Events Web site
---------------------------
15 minutes prior to the start of the call, as it may be necessary to download
audio software to hear the conference call. To do so, investors should click on
the Windows Media Player icon and follow directions from there. A replay of the
conference call will be available on the Street Events Web site for 30 days and
via telephone through October 24, 2001 by dialing (703) 925-2435, passcode
5587068.
Greater Bay Bancorp's corporate press releases are available on the Company's
Web site at http://www.gbbk.com.
-------------------
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, growth in loans, deposits and
assets, net loan charge-offs, level of loan loss reserves, loan quality,
continued success of its Super Community Banking strategy 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 international, national and local levels and
increased competition among financial service providers on the Company's results
of operations, the Company's ability to continue its internal growth at
historical rates, the Company's ability to maintain its net interest spread, and
the quality of the Company's earning assets; (2) government regulations; (3) the
ability to successfully integrate pending mergers and acquisitions; (4)
completion of the formation of the REIT; (5) the risks relating to the Company's
warrant positions; and (6) 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, 2000.
For investor information on Greater Bay Bancorp at no charge, call our automated
shareholder information line at 1-800-PRO-INFO (1-800-776-4636) and enter code
GBBK. For international access, dial 1-201-432-6555.
-Financial Tables Follow-
GREATER BAY BANCORP
SEPTEMBER 30, 2001 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
-----------------------------------------------------------------------------------------------------------------------------------
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA:
Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2001 2001 2001 2000 2000
-------------------------------------------------------------------
Cash and Due From Banks $ 212,811 $ 200,271 $ 206,156 $ 270,774 $ 243,207
Investments 2,538,501 2,038,824 1,301,970 1,100,333 1,085,257
Loans:
Commercial 1,645,159 1,620,541 1,595,293 1,562,712 1,250,056
Term Real Estate - Commercial 1,177,058 1,041,530 992,777 967,428 890,127
-------------------------------------------------------------------
Total Commercial 2,632,217 2,662,071 2,588,070 2,530,140 2,140,183
Construction 675,527 723,394 701,414 691,912 581,956
Real Estate - Other 226,553 236,927 233,538 176,568 174,997
Consumer and Other 184,458 204,939 216,064 216,459 206,632
Deferred Loan Fees, Net (14,075) (13,759) (13,461) (13,657) (13,440)
-------------------------------------------------------------------
Total Loans 3,894,680 3,813,572 3,725,625 3,601,422 3,090,328
Allowance for Loan Losses (90,414) (88,190) (85,914) (84,014) (67,637)
-------------------------------------------------------------------
Total Loans, Net 3,804,266 3,725,382 3,639,711 3,517,408 3,022,691
Other Assets 287,946 260,500 258,409 241,863 196,914
-------------------------------------------------------------------
Total Assets $ 6,843,524 $ 6,224,977 $ 5,406,246 $ 5,130,378 $ 4,548,069
===================================================================
Deposits:
Demand, Non-Interest Bearing $ 851,708 $ 846,505 $ 897,229 $ 1,003,828 $ 899,496
NOW, MMDA and Savings 2,018,214 2,058,234 2,108,098 2,082,708 2,132,184
Time Certificates, $100,000 and over 593,536 545,043 595,710 571,330 555,158
Other Time Certificates 850,893 866,970 672,593 507,195 338,500
-------------------------------------------------------------------
Total Deposits 4,314,351 4,316,752 4,273,630 4,165,061 3,925,338
-------------------------------------------------------------------
Other Borrowings 1,770,519 1,344,926 572,828 431,228 135,313
Other Liabilities 133,994 92,157 105,922 112,224 87,702
-------------------------------------------------------------------
Total Liabilities 6,218,864 5,753,835 4,952,380 4,708,513 4,148,353
-------------------------------------------------------------------
Trust Preferred Securities 218,000 99,500 99,500 99,500 99,500
Stockholders' Equity 406,660 371,642 354,366 322,365 300,216
-------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $ 6,843,524 $ 6,224,977 $ 5,406,246 $ 5,130,378 $ 4,548,069
===================================================================
Average Quarterly Total Loans, excluding Nonaccrual $ 3,838,288 $ 3,759,151 $ 3,638,946 $ 3,326,505 $ 2,962,402
Average Quarterly Investments $ 2,302,123 $ 1,649,065 $ 1,048,617 $ 1,095,752 $ 1,225,598
Average Quarterly Interest Earning Assets $ 6,140,411 $ 5,408,216 $ 4,687,563 $ 4,422,257 $ 4,188,000
Average Quarterly Interest Bearing Liabilities $ 5,004,378 $ 4,353,948 $ 3,643,025 $ 3,334,513 $ 3,044,342
Average Quarterly Assets $ 6,490,768 $ 5,770,784 $ 5,088,379 $ 4,783,445 $ 4,532,392
Average Quarterly Equity $ 390,017 $ 363,785 $ 340,582 $ 316,331 $ 301,644
Total Regulatory Capital
Tier I or Leverage Capital $ 494,374 $ 446,412 $ 431,427 $ 417,847 $ 412,724
Total Capital $ 646,596 $ 507,979 $ 491,675 $ 475,891 $ 462,807
Nonperforming Assets
Nonaccrual Loans $ 21,620 $ 7,221 $ 17,874 $ 12,593 $ 14,884
Restructured Loans -- -- -- -- 420
ORFO 259 -- -- -- 395
-------------------------------------------------------------------
Total Nonperforming Assets $ 21,620 $ 7,221 $ 18,133 $ 12,593 $ 15,699
===================================================================
Greater Bay Trust Company Assets $ 672,077 $ 683,306 $ 734,910 $ 773,791 $ 838,659
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SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION RATIOS:
Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2001 2001 2001 2000 2000
-------------------------------------------------------------------
Loan to Deposit Ratio 90.27% 88.34% 87.18% 86.47% 78.73%
Core Bank Loan to Deposit Ratio (1) 74.15% 72.42% 72.39% 72.44% 71.89%
Ratio of Allowance for Loan Losses to:
Average Loans 2.34% 2.34% 2.35% 2.52% 2.27%
End of Period Loans 2.31% 2.30% 2.30% 2.32% 2.18%
Total Nonperforming Assets 418.20% 1221.30% 473.80% 667.15% 430.84%
Ratio of Provision for Loan Losses to Average Loans,
annualized: 0.81% 1.05% 0.77% 0.75% 1.05%
Total Nonperforming Assets to Total Assets 0.32% 0.12% 0.34% 0.25% 0.35%
Ratio of Quarterly Net Charge-offs to Average Loans, annualized 0.58% 0.79% 0.59% 0.31% 0.37%
Ratio of YTD Net Charge-offs to YTD Average Loans, annualized 0.66% 0.69% 0.59% 0.38% 0.41%
Loan Growth, current quarter to prior year quarter 26.03% 34.31% 40.23% 46.13% 37.05%
Loan Growth, current quarter to prior quarter, annualized 8.44% 9.47% 13.99% 65.79% 35.17%
Loan Growth, YTD annualized 10.89% 11.88% 13.99% 46.13% 33.92%
Recurring Revenue Growth, current quarter to prior year quarter 21.73% 24.95% 30.94% 30.59% 34.71%
Recurring Revenue Growth, current quarter to prior quarter,
annualized 10.20% 18.71% 20.12% 31.93% 21.05%
Net Interest Income Growth, current quarter to prior year
quarter 21.63% 21.53% 32.06% 40.04% 40.11%
Net Interest Income Growth, current quarter to prior quarter,
annualized 23.15% 15.11% 5.13% 37.27% 22.88%
Average Earning Assets to Average Total Assets 94.60% 93.72% 92.12% 92.45% 92.40%
Average Earning Assets to Average Interest-Bearing Liabilities 122.70% 124.21% 128.67% 132.62% 137.57%
Capital Ratios:
Leverage 7.64% 7.76% 8.52% 8.77% 9.11%
Tier 1 Risk Based Capital 9.83% 9.19% 9.14% 9.40% 10.83%
Total Risk Based Capital 12.86% 10.46% 10.42% 10.70% 12.14%
Risk Weighted Assets $ 5,026,795 $ 4,856,661 $ 4,720,719 $ 4,446,088 $ 3,812,504
Book Value Per Share (2) $ 9.51 $ 8.72 $ 8.33 $ 7.69 $ 7.21
Total Shares Outstanding (2) 42,774,660 42,625,248 42,546,142 41,929,173 41,648,016
---------------
(1) Includes the ten core banking divisions and excludes Matsco, Capco, Pacific
Business Funding and Corporate Finance.
(2) Prior periods have been restated for the 2 for 1 stock split effective
October 4, 2000.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Bank of Santa Clara and Bank of Petaluma on a pooling-of-interests
basis.
--------------------------------------------------------------------------------
GREATER BAY BANCORP
SEPTEMBER 30, 2001 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
------------------------------------------------------------------------------------------------------------------------------------
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
2001 2001 2001 2000 2000
-------------------------------------------------------------------
Interest Income $ 119,706 $ 111,807 $ 106,694 $ 104,376 $ 96,612
Interest Expense 46,954 43,066 40,448 38,957 36,797
-------------------------------------------------------------------
Net Interest Income Before Provision for Loan Losses 72,752 68,741 66,246 65,419 59,815
Provision for Loan Losses 7,880 9,849 6,928 6,316 7,844
-------------------------------------------------------------------
Net Interest Income After Provision for Loan Losses 64,872 58,892 59,318 59,103 51,971
Other Income:
Trust Fees 865 978 886 954 822
Depositor Service Fees 2,192 2,091 2,013 2,034 2,219
ATM Fees 803 766 662 748 817
Loan and International Banking Fees 1,987 2,085 2,541 2,562 2,497
Gain on Sale of Loans 1,684 375 835 312 429
Gain/(loss) on Investments 819 3,944 1,578 21 3
Other Income 1,538 1,588 2,216 1,289 1,288
-------------------------------------------------------------------
9,888 11,827 10,731 7,920 8,075
Nonrecurring - Warrant Income (2) 77 504 -- 870 2,767
-------------------------------------------------------------------
Total Other Income 9,965 12,331 10,731 8,790 10,842
Operating Expenses:
Salaries 16,086 15,188 14,726 14,565 13,022
Benefits 3,594 3,872 3,679 2,884 2,770
-------------------------------------------------------------------
Total Compensation and Benefits (4) 19,680 19,060 18,405 17,449 15,792
Occupancy and Equipment 6,597 6,286 5,863 5,711 5,575
Professional Services & Legal 2,324 1,532 1,387 1,083 1,312
Telephone, postage and supplies 1,232 1,382 1,323 1,295 1,040
Marketing and promotion 1,272 1,272 1,235 1,229 935
Data Processing 948 922 911 757 461
Client Services 548 653 644 563 477
FDIC Insurance and Assessments 406 330 273 356 379
Other Real Estate, Net -- -- -- 5 --
Other Expenses 3,709 3,481 3,091 2,489 2,014
-------------------------------------------------------------------
36,716 34,918 33,132 30,937 27,985
Trust Preferred Securities (TPS) expense 3,724 2,454 2,458 2,412 2,585
-------------------------------------------------------------------
Total Operating Expenses 40,440 37,372 35,590 33,349 30,570
-------------------------------------------------------------------
Income Before Income Taxes, Merger and Other
Related Nonrecurring Costs 34,397 33,851 34,459 34,544 32,243
Income Taxes:
Income Tax Expense 13,005 12,491 12,928 12,695 11,173
Nonrecurring Income Tax Expense (2) 32 212 -- 366 1,164
-------------------------------------------------------------------
Total Income Tax Expense 13,037 12,703 12,928 13,061 12,337
Income Before Merger and Other Related Nonrecurring Costs 21,360 21,148 21,531 21,483 19,906
Merger and Other Related Nonrecurring Costs, net of tax (2) -- -- -- 3,533 7,037
-------------------------------------------------------------------
Net Income $ 21,360 $ 21,148 $ 21,531 $ 17,950 $ 12,869
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SELECTED QUARTERLY CONSOLIDATED OPERATING RATIOS:
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
2001 2001 2001 2000 2000
-------------------------------------------------------------------
Income Per Share (Before Nonrecurring and Merger
Items) (2),(3)
Basic $ 0.50 $ 0.49 $ 0.51 $ 0.50 $ 0.44
Diluted $ 0.48 $ 0.48 $ 0.49 $ 0.47 $ 0.42
Income Per Share (Before Merger Items) (3)
Basic $ 0.50 $ 0.50 $ 0.51 $ 0.51 $ 0.48
Diluted $ 0.49 $ 0.48 $ 0.49 $ 0.48 $ 0.46
Net Income Per Share (3)
Basic $ 0.50 $ 0.50 $ 0.51 $ 0.43 $ 0.31
Diluted $ 0.49 $ 0.48 $ 0.49 $ 0.41 $ 0.29
Weighted Average Common Shares Outstanding (3) 42,652,000 42,562,000 42,323,000 41,817,000 41,448,000
Weighted Average Common & Common Equivalent Shares
Outstanding (3) 43,983,000 43,685,000 44,175,000 44,319,000 43,676,000
Return on Period Average Assets, annualized (1) 1.30% 1.45% 1.72% 1.74% 1.61%
Return on Period Average Equity, annualized (1) 21.68% 23.00% 25.64% 26.38% 24.14%
Net Interest Margin - Average Earning Assets (5) 4.70% 5.10% 5.73% 5.89% 5.68%
Operating Expense Ratio (Before Nonrecurring and Merger
Items) 2.47% 2.60% 2.84% 2.77% 2.68%
Operating Expense Ratio (Before Nonrecurring and Merger
Items and excluding TPS expense) 2.24% 2.43% 2.64% 2.57% 2.46%
Efficiency Ratio (Before Nonrecurring and Merger Items) 48.94% 46.39% 46.23% 45.47% 45.03%
Efficiency Ratio (Before Nonrecurring and Merger Items
and excluding TPS expense) 44.43% 43.34% 43.04% 42.18% 41.22%
------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(1) Before Nonrecurring and Merger Items of $45 thousand, net of tax, in Q3
2001; $292 thousand, net of tax, in Q2 2001; $3.0 million, net of tax, in
Q4 2000 and $5.4 million, net of tax, in Q3 2000.
(2) Components of Nonrecurring and Merger Items. Net Income excluding these
items is $21,315 for Q3 2001;$20,856 for Q2 2001; $20,979 for Q4 2000 and
$18,303 for Q3 2000.
(3) Prior periods have been restated for the 2 for 1 stock split effective
October 4, 2000.
(4) Included Matsco compensation and benefits of $1.4 million in Q3 2001; $1.1
million in Q2 2001; $2.4 million in Q1 2001 and $904,000 in Q4 2000. (5)
The Net Interest Margin for Q3 2001 would have been 4.98%, if there was no
change in the balance sheet mix.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Bank of Santa Clara and Bank of Petaluma on a pooling-of-interests
basis.
--------------------------------------------------------------------------------
GREATER BAY BANCORP
SEPTEMBER 30, 2001 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
-----------------------------------------------------------------------------------------------------
SELECTED YEAR TO DATE CONSOLIDATED OPERATING DATA:
YTD YTD
30-Sep 30-Sep
2001 2000
------------- -------------
Interest Income $ 338,207 $ 263,987
Interest Expense 130,468 97,447
------------- -------------
Net Interest Income Before Provision for Loan Losses 207,739 166,540
Provision for Loan Losses 24,657 21,780
------------- -------------
Net Interest Income After Provision for Loan Losses 183,082 144,760
Other Income:
Trust Fees 2,729 2,496
Depositor Service Fees 6,296 6,560
ATM Fees 2,231 2,143
Loan and International Banking Fees 6,613 5,600
Gain on Sale of Loans 2,894 1,878
Gain/(loss) on Investments 6,341 60
Other Income 5,342 5,882
------------- -------------
32,446 24,619
Nonrecurring - Warrant Income (2) 581 12,116
------------- -------------
Total Other Income 33,027 36,735
Operating Expenses:
Salaries 46,000 38,513
Benefits 11,145 8,362
------------- -------------
Total Compensation and Benefits (4) 57,145 46,875
Occupancy and Equipment 18,746 15,977
Professional Services & Legal 5,243 3,621
Telephone, postage and supplies 3,937 3,362
Marketing and promotion 3,779 2,956
Data Processing 2,781 1,375
Client Services 1,845 1,518
FDIC Insurance and Assessments 1,009 880
Other Real Estate, Net -- 51
Other Expenses 10,281 7,218
------------- -------------
104,766 83,833
Trust Preferred Securities (TPS) expense 8,636 5,426
------------- -------------
Total Operating Expenses 113,402 89,259
------------- -------------
Income Before Income Taxes, Merger and Other Related Nonrecurring Costs 102,707 92,236
Income Taxes:
Income Tax Expense 38,424 30,432
Nonrecurring Income Tax Expense (2) 244 5,044
------------- -------------
Total Income Tax Expense 38,668 35,476
Income Before Merger and Other Related Nonrecurring Costs 64,039 56,760
Merger and Other Related Nonrecurring Costs, net of tax (2) -- 16,170
------------- -------------
Net Income $ 64,039 $ 40,590
------------- -------------
-----------------------------------------------------------------------------------------------------
SELECTED YEAR TO DATE CONSOLIDATED OPERATING RATIOS:
30-Sep 30-Sep
2001 2000
------------- -------------
Income Per Share (Before Nonrecurring and Merger Items) (2), (3)
Basic $ 1.50 $ 1.21
Diluted $ 1.45 $ 1.16
Income Per Share (Before Merger Items) (3)
Basic $ 1.51 $ 1.38
Diluted $ 1.46 $ 1.32
Net Income Per Share (3)
Basic $ 1.51 $ 0.99
Diluted $ 1.46 $ 0.94
Weighted Average Common Shares Outstanding (3) 42,515,000 40,996,000
Weighted Average Common & Common Equivalent Shares Outstanding (3) 43,850,000 42,981,000
Return on Period Average Assets, annualized (1) 1.47% 1.57%
Return on Period Average Equity, annualized (1) 23.30% 23.25%
Net Interest Margin - Average Earning Assets 5.13% 5.64%
Operating Expense Ratio (Before Nonrecurring and Merger Items) 2.62% 2.81%
Operating Expense Ratio (Before Nonrecurring and Merger Items and
excluding TPS expense) 2.42% 2.64%
Efficiency Ratio (Before Nonrecurring and Merger Items) 47.21% 46.69%
Efficiency Ratio (Before Nonrecurring and Merger Items and excluding
TPS expense) 43.62% 43.86%
-----------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(1) Before Nonrecurring and Merger Items of $337 thousand, net of tax, in YTD
Sept 2001 and $9.1 million, net of tax, in YTD Sept 2000.
(2) Components of Nonrecurring and Merger Items. Net Income excluding these
items is $63,702 for YTD Sept 2001 and $49,688 for YTD Sept 2000.
(3) Prior periods have been restated for the 2 for 1 stock split effective
October 4, 2000.
(4) Included Matsco compensation and benefits of $5.0 million in YTD September
2001.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Bank of Santa Clara and Bank of Petaluma on a pooling-of-interests
basis.
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