EXHIBIT 99.1
Press Release dated July 17, 2001
For Information Contact
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At Greater Bay Bancorp: At Financial Relations Board:
David L. Kalkbrenner Christina Carrabino (general information)
President and CEO James Hoyne (analyst contact)
(650) 614-5767 Dawn Swidorski (financial media)
Steven C. Smith (415) 986-1591
EVP, CAO and CFO
(650) 813-8222
FOR IMMEDIATE RELEASE
GREATER BAY BANCORP ANNOUNCES COMPLETION
OF TRUST PREFERRED SECURITIES OFFERING
PALO ALTO, CA, July 17, 2001 -- Greater Bay Bancorp (Nasdaq:GBBK), a financial
services holding company, announced the completion of a $15 million trust
preferred securities private offering. The company issued the trust preferred
securities through its trust subsidiary, GBB Capital VI, to a qualified
institutional buyer.
The trust preferred securities bear an interest rate of 6-month LIBOR plus 3.75%
payable semi-annually. GBB Capital VI used the proceeds from the sale of the
trust preferred securities to purchase junior subordinated deferrable interest
debentures of Greater Bay Bancorp. Greater Bay Bancorp intends to invest a
portion of the net proceeds in one or more of the company's subsidiary banks to
increase their capital levels and intends to use the remaining net proceeds for
general corporate purposes. Under applicable regulatory guidelines, the company
expects that the trust preferred securities will qualify as Tier I Capital.
The following table details on a historical and pro forma basis Greater Bay
Bancorp's capital ratios as of March 31, 2001.
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Historical Pro-Forma
($'s in billions) 3/31/01 3/31/01 (1)
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Total Assets $ 5,406,246 $ 5,421,246
Risk Weighted Assets $ 4,720,545 $ 4,735,732
Capital Ratios:
Equity to Assets 6.55% 6.54%
Leverage 8.52% 8.80%
Tier 1 Risk Based Capital 9.14% 9.41%
Total Risk Based Capital 10.42% 10.69%
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(1) Includes $15.0 million issuance of trust preferred securities.
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.
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 publicly available Securities and Exchange Commission
filings of Greater Bay Bancorp, including its Annual Report on Form 10-K for the
year ended December 31, 2000, and particularly the discussion of risk factors
within such documents.
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.
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