Exhibit 99.2
For Information Contact
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At Greater Bay Bancorp At Financial Relations Board
David L. Kalkbrenner Lise Needham (general information)
President and CEO Stephanie Mishra (analyst contact)
(650) 614-5767 (415) 986-1591
Steven C. Smith
EVP, COO and CFO
(650) 813-8222
FOR IMMEDIATE RELEASE
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GREATER BAY BANCORP ANNOUNCES
29% INCREASE IN CORE EARNINGS
PALO ALTO, CA, April 13, 1999 -- Greater Bay Bancorp (Nasdaq: GBBK), a $1.8
billion in assets financial services holding company, today announced results
for the first quarter ended March 31, 1999. Core earnings for the first quarter
increased 29% to $5.1 million or $0.50 per diluted share, compared to earnings
of $4.0 million or $0.39 per diluted share for the first quarter of 1998.
Including the one-time extraordinary charge related to the early retirement of
subordinated debt, first quarter 1999 net earnings were $5.0 million or $0.49
per diluted share.
At March 31, 1999, Greater Bay Bancorp's total assets were $1.8 billion, an
increase of 35% or approximately $460 million from March 31, 1998. Total loans
grew to $1.1 billion, an increase of $362 million or 46% compared to total loans
at March 31, 1998. Total deposits increased to $1.5 billion at quarter end, a
$433 million or 39% increase since March 31, 1998.
For the first quarter 1999, Greater Bay Bancorp's return on average equity and
average assets before the one-time extraordinary charge were 21.78% and 1.25%,
respectively, compared to 20.84% and 1.30%, respectively, for the first quarter
of 1998.
Mr. David L. Kalkbrenner, President and Chief Executive Officer, stated, "This
has been a great quarter for Greater Bay Bancorp. Our Super-Community Banking
strategy is clearly working. Greater Bay's earnings remain strong, our loan
growth is rapid and we continue to achieve superior asset quality." Mr.
Kalkbrenner continued, "We are also focusing our efforts on diversifying our
revenue stream while seeking ways to improve our competitive edge."
Mr. Kalkbrenner added, "During the quarter, we signed a definitive merger
agreement, which is expected to close in May 1999, with Bay Area Bancshares. We
also announced the grand opening of the Greater Bay Bank Santa Clara Valley
Commercial Banking Group. These developments further demonstrate our continued
commitment to increasing market share within the communities we serve."
GREATER BAY BANCORP ANNOUNCES 29% INCREASE IN CORE EARNINGS
APRIL 13, 1999
PAGE 2
Operating results for the three months ended March 31, 1999, include
approximately $118,000 excluding internal staff time, related to the correction
of the year 2000 "millennium bug" which impacts all companies. The company has
budgeted an anticipated total expenditure of $300,000 in fiscal 1999 to address
the year 2000 issues.
Reflecting the high quality of its expanding loan portfolio, Greater Bay
Bancorp's ratio of non-performing assets to total assets was 0.22% at March 31,
1999, compared to 0.39% at March 31, 1998. In addition, the allowance for loan
losses represented 1.91% of total loans and 554.95% of total non-performing
assets at March 31, 1999, compared to 2.12% and 320.78% at March 31, 1998.
During the quarter, the Company's trust fees, depositor services fees, gain on
sale of SBA loans, and loan and international banking fees were $1.7 million, up
23% from $1.4 million in the first quarter of 1998.
Greater Bay Bancorp's capital ratios continue to be above the well-capitalized
guidelines established by the bank regulatory agencies.
Greater Bay Bancorp and its financial service subsidiaries, Cupertino National
Bank, Mid-Peninsula Bank, Peninsula Bank of Commerce and Golden Gate Bank, along
with its operating divisions, Greater Bay Bank Santa Clara Commercial Banking
Group, Greater Bay Corporate Finance Group, Greater Bay Bank Contra Costa
Regional Banking Office, Greater Bay International Banking Division, Greater Bay
Trust Company, Pacific Business Funding and Venture Banking Group, serve clients
throughout Silicon Valley, the San Francisco Peninsula and the Contra Costa Tri
Valley Region, with offices located in San Jose, Cupertino, Santa Clara, Palo
Alto, Redwood City, San Mateo, Millbrae, San Bruno, San Francisco and Walnut
Creek.
SAFE HARBOR
This document may contain forward-looking statements that are subject to risks
and uncertainties that could cause actual results to differ materially from
those projected. For a discussion of factors that could cause actual results to
differ, please see the Company's publicly available Securities and Exchange
Commission filings, including its Annual Report on Form
10-K for the year ended December 31, 1998, and particularly the discussion of
risk factors within that document.
For investor information on Greater Bay Bancorp at no charge, call our automated
shareholder information line at 1-800-679-2606 or via fax, dial 1-800-PRO-INFO
and enter code GBBK. For international access, dial 1-732-544-2850.
- FINANCIAL TABLES FOLLOW -
Greater Bay Creater Bay Bancrop Announces 29% Increase In Core Earnings
April 13, 1999
Page 3
GREATER BAY BANCORP
MARCH 31, 1999 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
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SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION DATA:
Mar 31 Dec 31 Sept 30 Jun 30 Mar 31
1999 1998 1998 1998 1998
----------- ----------- ----------- ----------- -----------
Cash and Due From Banks $ 68,185 $ 59,975 $ 55,399 $ 70,010 $ 71,152
Investments 511,123 463,470 574,636 558,335 426,098
Loans:
Commercial 560,913 455,077 388,094 372,930 367,384
Construction 177,939 173,857 153,378 139,850 121,446
Real Estate 320,637 299,111 245,340 227,652 217,845
Consumer and Other 89,418 81,089 75,673 81,750 79,177
Deferred Loan Fees, Net (4,358) (3,343) (2,966) (2,446) (2,904)
----------- ----------- ----------- ----------- -----------
Total Loans 1,144,549 1,005,791 859,519 819,736 782,948
Allowance for Loan Losses (21,915) (21,304) (19,861) (17,985) (16,565)
----------- ----------- ----------- ----------- -----------
Total Loans, Net 1,122,634 984,487 839,658 801,751 766,383
Other Assets 79,354 74,933 65,690 56,773 58,092
----------- ----------- ----------- ----------- -----------
Total Assets $ 1,781,296 $ 1,582,865 $ 1,535,383 $ 1,486,869 $ 1,321,725
=========== =========== =========== =========== ===========
Deposits:
Demand, Non-Interest Bearing $ 280,747 $ 268,448 $ 237,596 $ 263,121 $ 208,277
NOW, MMDA and Savings 931,256 854,392 802,220 809,594 676,730
Time Certificates, $100,000 and over 275,639 168,075 198,286 180,891 175,381
Other Time Certificates 51,435 51,577 49,830 31,009 46,043
----------- ----------- ----------- ----------- -----------
Total Deposits 1,539,077 1,342,492 1,287,932 1,284,615 1,106,431
----------- ----------- ----------- ----------- -----------
Other Borrowings 69,788 73,734 89,735 82,275 85,142
Other Liabilities 24,174 20,963 15,764 14,556 26,857
----------- ----------- ----------- ----------- -----------
Total Liabilities 1,633,039 1,437,189 1,393,431 1,381,446 1,218,430
----------- ----------- ----------- ----------- -----------
Long-term Subordinated Debt - 3,000 3,000 3,000 3,000
Trust Preferred Securities 50,000 50,000 50,000 20,000 20,000
Stockholders' Equity 98,257 92,676 88,952 82,423 80,295
----------- ----------- ----------- ----------- -----------
Regulatory Capital 148,257 145,676 141,952 105,423 103,295
----------- ----------- ----------- ----------- -----------
Total Liabilities and Shareholders' Equity $ 1,781,296 $ 1,582,865 $ 1,535,383 $ 1,486,869 $ 1,321,725
=========== =========== =========== =========== ===========
Average Quarterly Total Loans, excluding Nonaccrual $ 1,075,401 $ 905,675 $ 824,356 $ 794,786 $ 752,381
Average Quarterly Investments $ 466,052 $ 548,793 $ 585,654 $ 475,082 $ 410,650
Average Quarterly Interest Bearing Liabilities $ 1,298,993 $ 1,216,476 $ 1,148,268 $ 1,015,659 $ 969,365
Average Quarterly Assets $ 1,667,169 $ 1,578,508 $ 1,489,844 $ 1,375,328 $ 1,240,507
Average Quarterly Equity $ 95,840 $ 90,624 $ 86,577 $ 80,667 $ 77,425
Regulatory Capital
Tier I or Leverage Capital $ 130,279 $ 123,287 $ 115,951 $ 102,025 $ 99,755
Total Capital $ 165,354 $ 161,103 $ 154,597 $ 120,281 $ 117,031
Nonperforming Assets
Nonaccrual Loans $ 2,847 $ 1,858 $ 2,919 $ 3,758 $ 3,152
Loans 90 Days Past Due & Accruing - - - 75 108
Restructured Loans 482 327 377 531 903
OREO 620 966 905 1,001 1,001
----------- ----------- ----------- ----------- -----------
Total Nonperforming Assets $ 3,949 $ 3,151 $ 4,201 $ 5,365 $ 5,164
=========== =========== =========== =========== ===========
Greater Bay Trust Company Assets $ 630,840 $ 649,336 $ 581,437 $ 636,362 $ 576,290
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SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION RATIOS:
Mar 31 Dec 31 Sept 30 Jun 30 Mar 31
1999 1998 1998 1998 1998
----------- ----------- ----------- ----------- -----------
Loan to Deposit Ratio 74.37% 74.92% 66.74% 63.81% 70.76%
Ratio of Allowance for Loan Losses to:
Total Loans 1.91% 2.12% 2.31% 2.19% 2.12%
Total Nonperforming Assets 554.95% 676.10% 472.77% 335.24% 320.78%
Total Nonperforming Assets to Total Assets 0.22% 0.20% 0.27% 0.36% 0.39%
Ratio of Quarterly Net Charge-offs to Average Loans,
annualized 0.10% 0.22% 0.02% 0.01% 0.01%
Ratio of YTD Net Charge-offs to Average Loans ,
annualized 0.10% 0.21% 0.20% 0.30% 0.61%
Earning Assets to Total Assets 93.03% 92.92% 93.41% 92.59% 91.46%
Earning Assets to Interest-Bearing Liabilities 120.25% 122.48% 120.21% 122.19% 120.12%
Capital Ratios:
Leverage 7.81% 7.81% 7.78% 7.42% 8.04%
Tier 1 Risk Based Capital 9.23% 9.90% 10.99% 10.08% 10.57%
Total Risk Based Capital 11.72% 12.94% 14.65% 11.88% 12.41%
Risk Weighted Assets $ 1,411,340 $ 1,245,336 $ 1,055,323 $ 1,012,545 $ 943,348
Book Value Per Share $ 10.09 $ 9.64 $ 9.28 $ 8.69 $ 8.55
Total Shares Outstanding 9,736,602 9,612,141 9,584,634 9,489,134 9,395,764
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Pacific Rim Bancorporation and Pacific Business Funding
Corporation, on a pooling-of-interests basis.
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Greater Bay Creater Bay Bancrop Announces 29% Increase In Core Earnings
April 13, 1999
Page 4
GREATER BAY BANCORP
MARCH 31, 1999 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
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SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
1999 1998 1998 1998 1998
---------- --------- --------- --------- ---------
Interest Income $ 31,341 $ 29,969 $ 29,861 $ 27,510 $ 25,560
Interest Expense 12,981 12,495 12,953 11,592 10,432
---------- --------- --------- --------- ---------
Net Interest Income before Provision for Loan Losses 18,360 17,494 16,908 15,918 15,128
Provision for Loan Losses 861 1,901 1,791 1,347 996
---------- --------- --------- --------- ---------
Net Interest Income after Provision for Loan Losses 17,499 15,593 15,117 14,571 14,132
Other Income:
Trust Fees 721 664 642 617 550
Depositor Service Fees 352 357 361 349 420
Loan and International Banking Fees 309 176 165 190 146
Gain on Sale of SBA Loans 284 282 290 221 244
Gain/(loss) on Investments - 320 4 42 8
Other Income (1) 264 384 65 152 (339)
---------- --------- --------- --------- ---------
1,930 2,183 1,527 1,571 1,029
Nonrecurring - Warrant Income 4 314 134 - 497
---------- --------- --------- --------- ---------
Other Income 1,934 2,497 1,661 1,571 1,526
Operating Expenses:
Compensation and Benefits 6,380 5,807 5,753 5,729 5,426
Occupancy and Equipment 2,072 1,751 1,542 1,535 1,389
Professional Services & Legal 489 432 403 377 385
Client Services 252 140 122 131 151
FDIC Insurance and Assessments 92 84 88 77 89
Other Real Estate, Net 21 (6) 43 (8) 24
Other Expenses 1,729 2,458 1,740 1,431 1,618
---------- --------- --------- --------- ---------
11,035 10,666 9,691 9,272 9,082
Nonrecurring Expenses (2) - 448 192 - 701
---------- --------- --------- --------- ---------
Total Operating Expenses 11,035 11,114 9,883 9,272 9,783
---------- --------- --------- --------- ---------
Income before Income Taxes, Merger and Other Related
Nonrecurring Costs and Extraordinary Items 8,398 6,976 6,895 6,870 5,875
Income Tax Expense 3,252 1,993 2,141 2,334 1,896
---------- --------- --------- --------- ---------
Income before Merger and Other Related Nonrecurring Costs
and Extraordinary Items 5,146 4,983 4,754 4,536 3,979
Merger and Other Related Nonrecurring Costs, net of tax - - 360 1,314 -
---------- --------- --------- --------- ---------
Income before Extraordinary Items 5,146 4,983 4,394 3,222 3,979
Extraordinary Items, net of tax (3) (88) - - - -
---------- --------- --------- --------- ---------
Net Income $ 5,058 4,983 $ 4,394 $ 3,222 $ 3,979
========== ========= ========= ========= =========
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SELECTED QUARTERLY CONSOLIDATED OPERATING RATIOS:
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
1999 1998 1998 1998 1998
------------ --------- --------- --------- ---------
Income Per Share (Before Merger and Other Related
Nonrecurring Costs and Extraordinary Items) (4) (5)
Basic $ 0.53 0.52 $ 0.50 $ 0.48 $ 0.43
Diluted $ 0.50 0.48 $ 0.47 $ 0.44 $ 0.39
Net Income Per Share (4) (5)
Basic $ 0.52 0.52 $ 0.46 $ 0.34 $ 0.43
Diluted $ 0.49 0.48 $ 0.43 $ 0.31 $ 0.39
Weighted Average Common Shares Outstanding (5) 9,688,000 9,595,000 9,525,000 9,460,000 9,356,000
Weighted Average Common & Common Equivalent
Shares Outstanding (5) 10,276,000 10,306,000 10,223,000 10,254,000 10,254,000
Return on Quarterly Average Assets, annualized (6) 1.25% 1.25% 1.27% 1.32% 1.30%
Return on Quarterly Average Equity, annualized (6) 21.78% 21.82% 21.79% 22.55% 20.84%
Net Interest Margin - Average Earning Assets 4.83% 4.77% 4.76% 5.03% 5.28%
Operating Expense Ratio (Before Merger and Other Related
Nonrecurring Costs and Extraordinary Items) 2.68% 2.68% 2.58% 2.70% 2.97%
Efficiency Ratio (Before Merger and Other Related
Nonrecurring Costs and Extraordinary Items) 54.39% 54.21% 52.57% 53.02% 56.21%
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(1) Q1 and Q3 of 1998 includes a $700,000 and $100,000 write-down of an equity
investment in accordance with APB 18, respectively.
(2) Q1, Q3 and Q4 of 1998 nonrecurring expenses are comprised of $701,000,
$192,000 and $448,000 in donations to the GBB Foundation, respectively.
(3) Includes $88,000 loss on early retirement of subordinated debt.
(4) Net income per share for prior periods have been restated as required by the
adoption of SFAS No. 128. In accordance with the newly adopted accounting
standard, Net income Per Share is now presented on a Basic and Diluted
basis.
(5) Restated to reflect the 2-for-1 stock split declared for shareholders of
record as of April 30, 1998.
(6) Before Merger and Other Related Nonrecurring Costs and Extraordinary Items
of $88,000, net of tax, in Q1 1999, $360,000, net of tax, in Q3 of 1998, and
$1.31 million, net of tax, in Q2 of 1998.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Pacific Rim Bancorporation and Pacific Business Funding
Corporation, on a pooling-of-interests basis.
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Greater Bay Greater Bay Bancorp Announces 29% Increase In Core Earnings
April 13, 1999
Page 5
GREATER BAY BANCORP
MARCH 31, 1999 - FINANCIAL SUMMARY
($ in 000's, except shar data)
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SELECTED YEAR TO DATE CONSOLIDATED OPERATING DATA:
MARCH 31, MARCH 31,
1999 1998
--------- ---------
Interest Income $ 31,341 $ 25,560
Interest Expense 12,981 10,432
-------- --------
Net Interest Income Before Provision for Loan Losses 18,360 15,128
Provision for Loan Losses 861 996
-------- --------
Net Interest Income After Provision for Loan Losses 17,499 14,132
Other Income (1) 1,930 1,029
Nonrecurring - Warrant Income 4 497
-------- --------
Total Other Income 1,934 1,526
Operating Expenses 11,035 9,082
Other Expenses - nonrecurring (2) - 701
-------- --------
Total Operating Expenses 11,035 9,783
-------- --------
Income Before Income Taxes and Extraordinary Items 8,398 5,875
Income Tax Expense 3,252 1,896
-------- --------
Income Before Extraordinary Items 5,146 3,979
Extraordinary Items (3) (88) -
-------- --------
Net Income $ 5,058 $ 3,979
-------- --------
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SELECTED YEAR TO DATE CONSOLIDATED OPERATING RATIOS:
MARCH 31, MARCH 31,
1999 1998
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Income Per Share (Before Extraordinary Items) (4) (5)
Basic $ 0.53 $ 0.43
Diluted $ 0.50 $ 0.39
Net Income Per Share (4) (5)
Basic $ 0.52 $ 0.43
Diluted $ 0.49 $ 0.39
Weighted Average Common Shares Outstanding (5) 9,688,000 9,356,000
Weighted Average Common & Common Equivalent Shares Outstanding (5) 10,276,000 10,254,000
Return on Average Assets, annualized (6) 1.25% 1.30%
Return on Average Equity, annualized (6) 21.78% 20.84%
Net Interest Margin - Average Earning Assets 4.83% 5.28%
Operating Expense Ratio (Before Extraordinary Items) 2.68% 2.87%
Efficiency Ratio (Before Extraordinary Items) 54.39% 56.21%
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(1) Q1 of 1998 includes a $700,000 write-down of an equity investment in
accordance with APB 18.
(2) Q1 of 1998 nonrecurring expenses are comprised of a $701,000 donation to
the GBB Foundation.
(3) Includes $88,000 loss on early retirement of subordinated debt.
(4) Net income per share for prior periods have been restated as required by
the adoption of SFAS No. 128. In accordance with the newly adopted
accounting standard, Net income per share is now presented on a Basic and
Diluted basis.
(5) Restated to reflect the 2-for-1 stock split declared for shareholders of
record as of April 30, 1998.
(6) Before Extraordinary Items of $88,000, net of
tax in Q1 of 1999.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Pacific Rim Bancorporation and Pacific Business Funding
Corporation, on a pooling-of-interests basis.
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