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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 22, 2000
Greater Bay Bancorp
(Exact name of registrant as specified in its charter)
California 77-0387041
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
Commission file number: 0-25034
2860 West Bayshore Road
Palo Alto, California 94303
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (650) 813-8200
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Item 5. Other Events.
(a) Greater Bay Bancorp (the "Registrant") issued a press release on
February 22, 2000 announcing its first quarter 2000 cash dividend. A copy of
the press release is attached hereto as Exhibit 99.1.
(b) On January 31, 2000, the Registrant completed its merger with Mt.
Diablo Bancshares ("MDB"), which was accounted for using the pooling of
interests method of accounting. Attached hereto as Exhibit 99.2 are the
Registrant's interim financial data as of February 29, 2000 showing 30
days of post-combination operating results. Upon filing of this interim
financial data, the Registrant's supplemental consolidated financial
statements included in the Registrant's Current Report on Form 8-K, filed with
the SEC on February 1, 2000, become the historical consolidated financial
statements of the Registrant.
Item 7. Financial Statements and Exhibits.
Exhibits
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99.1 Press Release dated February 22, 2000
99.2 Interim Financial Data as of February 29, 2000
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Greater Bay Bancorp
(Registrant)
Dated: March 30, 2000 By: /s/ Linda M. Iannone
--------------------
Linda M. Iannone
Senior Vice President and General
Counsel
3
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Exhibit Index
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99.1 Press Release dated February 22, 2000
99.2 Interim Financial Data as of February 29, 2000
4
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EXHIBIT 99.1
For Information Contact
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at Greater Bay Bancorp: At Financial Relations Board:
David L Kalkbrenner, President & CEO Christina Carrabino (general information)
(650) 614-5767 Stephanie Mishra (analyst contact)
Steven C. Smith, EVP, CAO & CFO (415) 986-1591
(650) 813-8222
FOR IMMEDIATE RELEASE
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GREATER BAY BANCORP DECLARES
25% INCREASE IN FIRST QUARTER CASH DIVIDEND
PALO ALTO, CA, February 22, 2000-- Greater Bay Bancorp (Nasdaq: GBBK), a $2.85
billion in assets financial services holding company, has declared a fifteen
cent ($0.15) per share cash dividend for the first quarter of 2000.
The cash dividend will be payable on April 14, 2000, to shareholders of record
as of March 31, 2000. This dividend represents a 25% increase over the Company's
previous quarterly dividend of twelve cents ($0.12) per share.
"We are very pleased to announce an increased cash dividend for the first
quarter of 2000," said David L. Kalkbrenner, president and chief executive
officer of Greater Bay Bancorp. "The Company's continuing strong earnings
performance and capital ratios allow us to reward our shareholders for their
continued support and confidence."
Greater Bay Bancorp through its seven subsidiary banks, Bay Area Bank, Bay Bank
of Commerce, Cupertino National Bank, Golden Gate Bank, Mt. Diablo National
Bank, Mid-Peninsula Bank and Peninsula Bank of Commerce, along with its
operating divisions, serves clients throughout Silicon Valley, San Francisco,
the San Francisco Peninsula, and the Contra Costa Tri Valley Region, with
offices located in Cupertino, Danville, Fremont, Hayward, Lafayette, Millbrae,
Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Leandro, San
Mateo, San Ramon, Santa Clara, and Walnut Creek.
Safe Harbor
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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 the Annual Report on Form 10-K for the
year ended December 31, 1999, 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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EXHIBIT 99.2
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Greater Bay Bancorp and Subsidiaries
Interim Financial Data - Condensed Statement of Operations
For the Period January 1, 2000 through February 29, 2000
(dollars in thousands)
Net interest income $ 23,412
Provision for loan losses 4,259
-----------
Net interest income after provision for loan losses 19,153
-----------
Other income - recurring 4,463
Other income - warrant income 5,049
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Total other income 9,512
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Operating expenses - recurring 12,740
Merger and other related nonrecurring expenses 3,881
-----------
Total operating expenses 16,621
-----------
Net income before provision for income taxes 12,044
Provision for income taxes 4,712
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Net income $ 7,332
===========
The results presented above have been restated on a pooling of interests basis
to include the consolidated results of Mt. Diablo Bancshares, the parent of Mt.
Diablo National Bank, which was acquired by Greater Bay Bancorp in January 31,
2000
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GREATER BAY BANCORP
February 29, 2000 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
<TABLE>
<CAPTION>
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SELECTED CONSOLIDATED FINANCIAL CONDITION DATA:
Feb 29 Dec 31 Sept 30 June 30 Mar 31
2000 1999 1999 1999 1999
----------- ----------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Cash and Due From Banks $ 132,863 $ 107,591 $ 121,742 $ 114,398 $ 98,553
Investments 873,984 725,976 695,015 675,288 621,728
Loans:
Commercial 841,159 810,399 750,895 707,024 651,860
Term Real Estate - Commercial 493,295 484,076 441,510 373,443 369,663
----------- ----------- ---------- ----------- ------------
Total Commercial 1,334,454 1,294,475 1,192,405 1,080,467 1,021,523
Construction 440,925 417,326 347,715 315,408 272,300
Real Estate - Other 95,026 92,688 98,336 100,511 90,417
Consumer and Other 120,558 123,528 111,305 109,758 105,329
Deferred Loan Fees, Net (6,961) (6,840) (6,230) (5,818) (5,598)
----------- ----------- ---------- ----------- ------------
Total Loans 1,984,002 1,921,177 1,743,531 1,600,326 1,483,971
Allowance for Loan Losses (44,633) (40,421) (29,187) (26,866) (26,866)
----------- ----------- ---------- ----------- ------------
Total Loans, Net 1,939,369 1,880,756 1,710,503 1,571,139 1,457,105
Other Assets 144,556 131,765 114,090 103,326 92,908
----------- ----------- ---------- ----------- ------------
Total Assets $ 3,090,772 $ 2,846,088 $2,641,350 $ 2,464,151 $ 2,270,294
=========== =========== ========== =========== ============
Deposits:
Demand, Non-Interest Bearing $ 573,566 $ 514,482 $ 468,674 $ 416,978 $ 397,632
NOW, MMDA and Savings 1,669,088 1,463,517 1,374,684 1,258,623 1,124,487
Time Certificates, $100,000 and over 422,480 434,540 403,679 368,020 346,372
Other Time Certificates 93,135 93,847 112,446 112,364 115,269
----------- ----------- ---------- ----------- ------------
Total Deposits 2,758,269 2,506,386 2,368,400 2,155,985 1,983,760
----------- ----------- ---------- ----------- ------------
Other Borrowings 47,100 69,100 52,678 90,635 72,735
Other Liabilities 52,909 47,007 33,582 28,234 27,739
----------- ----------- ---------- ----------- ------------
Total Liabilities 2,858,278 2,622,493 2,445,743 2,274,854 2,084,234
----------- ----------- ---------- ----------- ------------
Long-term Subordinated Debt - - - - -
Trust Preferred Securities 50,000 50,000 50,000 50,000 50,000
Stockholders' Equity 182,494 173,595 145,607 139,297 136,060
----------- ----------- ---------- ----------- ------------
Regulatory Capital 232,494 223,595 195,607 189,297 186,060
----------- ----------- ---------- ----------- ------------
Total Liabilities and Shareholders' Equity $ 3,090,772 $ 2,846,088 $2,641,350 $ 2,464,151 $ 2,270,294
=========== =========== ========== =========== ============
Average Period Total Loans, excluding Nonaccrual $ 1,962,345 $ 1,814,744 $1,675,088 $ 1,548,566 $ 1,403,292
Average Period Investments $ 844,835 $ 800,475 $ 672,376 $ 670,236 $ 562,272
Average Period Interest Earning Assets $ 2,807,180 $ 2,615,219 $2,347,464 $ 2,218,803 $ 1,965,564
Average Period Interest Bearing Liabilities $ 2,240,158 $ 2,108,995 $1,934,828 $ 1,826,994 $ 1,609,827
Average Period Assets $ 3,018,462 $ 2,811,106 $2,534,508 $ 2,388,154 $ 2,133,395
Average Period Equity $ 180,132 $ 151,094 $ 144,073 $ 141,635 $ 132,773
Regulatory Capital
Tier I or Leverage Capital $ 253,755 $ 218,524 $ 190,680 $ 179,872 $ 167,903
Total Capital $ 289,936 $ 252,994 $ 226,092 $ 214,571 $ 207,371
Nonperforming Assets
Nonaccrual Loans $ 7,507 $ 4,418 $ 6,028 $ 3,487 $ 3,104
Loans 90 Days Past Due & Accruing - 51 - 199 -
Restructured Loans 745 807 1,492 1,034 951
OREO 271 271 515 595 620
----------- ----------- ---------- ----------- ------------
Total Nonperforming Assets $ 8,523 $ 5,547 $ 8,035 $ 5,315 $ 4,675
=========== =========== ========== =========== ============
Greater Bay Trust Company Assets $ 727,947 $ 652,054 $ 659,414 $ 630,840 $ 649,336
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SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION RATIOS:
Feb 29 Dec 31 Sept 30 June 30 Mar 31
2000 1999 1999 1999 1999
---------- ---------- --------- ---------- -----------
Loan to Deposit Ratio 71.93% 76.65% 73.89% 74.23% 74.81%
Ratio of Allowance for Loan Losses to:
Total Loans 2.25% 2.10% 1.89% 1.82% 1.81%
Total Nonperforming Assets 523.68% 728.70% 411.05% 549.14% 574.67%
Total Nonperforming Assets to Total Assets 0.28% 0.19% 0.30% 0.22% 0.21%
Ratio of Period Net Charge-offs to Average Loans , annualized -0.01% -0.28% 0.02% -0.01% -0.07%
Ratio of YTD Net Charge-offs to Average Loans , annualized -0.01% -0.09% -0.02% -0.04% -0.07%
Internal Loan Growth, Annualized 19.95% 40.42% 35.89% 31.80% 47.47%
Recurring Revenue Growth, Annualized 35.83% 58.27% 49.09% 50.33% 6.40%
Earning Assets to Total Assets 92.45% 93.10% 92.33% 92.44% 92.86%
Earning Assets to Interest-Bearing Liabilities 125.23% 125.51% 122.34% 121.19% 123.37%
Capital Ratios:
Leverage (1) 8.41% 7.77% 7.52% 7.53% 7.87%
Tier 1 Risk Based Capital (1) 10.11% 9.16% 8.78% 9.33% 9.29%
Total Risk Based Capital (1) 11.55% 10.61% 10.41% 11.13% 11.47%
Risk Weighted Assets $ 2,510,504 $ 2,384,511 $ 2,172,461 $ 1,927,955 $ 1,807,523
Book Value Per Share $ 12.96 $ 12.43 $ 10.87 $ 10.47 $ 10.38
Total Shares Outstanding 14,078,785 13,964,065 13,390,746 13,310,362 13,109,887
(1) Subsequent to February 29, 2000, $12.0 million of common stock and $9.5 million of trust preferred securities were issued. If
these were issued as of February 29, 2000, the ratios would have been 9.12%, 10.97% and 12.41%, respectively.
Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp, Bay Area Bancshares, Bay Commercial
Services and Mt. Diablo Bancshares on a pooling-of-interests basis.
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</TABLE>
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GREATER BAY BANCORP
February 29, 2000 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
<TABLE>
<CAPTION>
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SELECTED PERIOD CONSOLIDATED OPERATING DATA:
January 1 to Fourth Third Second First
February 29 Quarter Quarter Quarter Quarter
2000 1999 1999 1999 1999
------------ ----------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Interest Income $ 39,725 $ 55,568 $ 49,426 $ 45,155 $ 40,149
Interest Expense 16,313 22,513 19,830 18,283 15,929
----------- ----------- ---------- ----------- ------------
Net interest income Before provision for Loan Losses 23,412 33,055 29,596 26,872 24,220
Provision for Loan Losses 4,259 6,232 3,752 1,917 1,163
----------- ----------- ---------- ----------- ------------
Net Interest Income After Provision for Loan Losses 19,153 26,823 25,844 24,955 23,057
Other Income:
Trust Fees 565 774 768 727 721
Depositor Service Fees 517 916 791 660 712
ATM Fees 265 474 620 501 515
Loan and International Banking Fees 437 862 871 651 449
Gain on Sale of SBA Loans 142 85 272 351 302
Gain/(loss) on Investments - (23) 4 - -
Other Income (1) 2,537 3,949 1,836 591 419
----------- ----------- ---------- ----------- ------------
4,463 7,037 5,162 3,481 3,118
Nonrecurring - Warrant Income (5) 5,049 14,278 - 226 4
----------- ----------- ---------- ----------- ------------
Other Income 9,512 21,315 5,162 3,707 3,122
Operating Expenses:
Compensation and Benefits 7,230 10,745 9,482 9,129 8,714
Occupancy and Equipment 2,602 3,449 2,978 2,750 3,026
Professional Services & Legal 479 481 756 601 580
Client Services 331 474 323 138 439
FDIC Insurance and Assessments 161 179 167 128 117
Other Real Estate, Net 10 (53) 30 15 21
Other Expenses 1,929 3,112 3,244 3,403 2,537
----------- ----------- ---------- ----------- ------------
12,742 18,387 16,980 16,164 15,434
Nonrecurring Expenses (2) (5) - 11,837 - 323 -
----------- ----------- ---------- ----------- ------------
Total Operating Expenses 12,742 30,224 16,980 16,487 15,434
----------- ----------- ---------- ----------- ------------
Net Income Before Income Taxes, Merger and Other Related
Nonrecurring Costs and Extraordinary Items 15,923 17,914 14,026 12,175 10,745
Income Taxes:
Income Tax Expense 4,078 5,660 5,242 4,883 4,181
Nonrecurring Income Tax Expense (5) 2,123 (2,046) - (173) -
----------- ----------- ---------- ----------- ------------
Total Income Tax Expense 6,201 3,614 5,242 4,710 4,181
Net Income Before Merger and Other Related Nonrecurring Costs
and Extraordinary 9,722 14,300 8,784 7,465 6,564
Merger and Other Related Nonrecurring Costs, net of tax (5) 2,390 3,995 - 2,492 -
----------- ----------- ---------- ----------- ------------
Net Income Before Extraordinary Items 7,332 10,305 8,784 4,973 6,564
Extraordinary Items, net of tax (3) - - - - (88)
----------- ----------- ---------- ----------- ------------
Net Income $ 7,332 $ 10,305 $ 8,784 $ 4,973 $ 6,476
=========== =========== ========== =========== ============
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</TABLE>
<TABLE>
<CAPTION>
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SELECTED QUARTERLY CONSOLIDATED OPERATING RATIOS:
January 1 to Fourth Third Second First
February 29 Quarter Quarter Quarter Quarter
2000 1999 1999 1999 1999
------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Income Per Share (Before Merger, Nonrecurring
and Extraordinary Items)
Basic $ 0.49 $ 0.73 $ 0.66 $ 0.56 $ 0.50
Diluted $ 0.46 $ 0.68 $ 0.62 $ 0.53 $ 0.47
Net Income Per Share
Basic $ 0.52 $ 0.77 $ 0.66 $ 0.38 $ 0.50
Diluted $ 0.50 $ 0.72 $ 0.62 $ 0.35 $ 0.46
Weighted Average Common Shares Outstanding 14,010,000 13,459,000 13,394,000 13,231,000 13,053,000
Weighted Average Common & Common Equivalent
Shares Outstanding 14,744,000 14,400,000 14,190,000 14,070,000 13,973,000
Return on Period Average Assets, annualized (4) 1.37% 1.38% 1.38% 1.24% 1.25%
Return on Period Average Equity, annualized (4) 23.01% 25.77% 24.19% 20.93% 20.04%
Net Interest Margin - Average Earning Assets 5.09% 5.01% 5.00% 4.86% 5.00%
Operating Expense Ratio (Before Nonrecurring and
Extraordinary Items) 2.58% 2.60% 2.66% 2.71% 2.93%
Efficiency Ratio (Before Nonrecurring and
Extraordinary Items) 45.71% 45.86% 48.85% 53.25% 56.46%
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</TABLE>
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(1) Period ending February 29, 2000 and Q4 and Q3 of 1999 include a $2.1
million, $3.1million, and $900,000 gain on an equity investment,
respectively.
(2) Q4 and Q2 of 1999 nonrecurring expenses are comprised of $7.4 million and
$323,000 in donations to the GBB Foundation, respectively. (3) Includes
$88,000 loss on early retirement of subordinated debt.
(4) Before Merger,Nonrecurring and Extraordinary Items of ($653,000), net of
tax, for period ending February 29, 2000; $492,000, net of tax, Q4 of 1999;
$2.5 million, net of tax, in Q2 1999; $88,000, net of tax, in Q1 1999.
(5) Components of merger, nonrecurring and extraordinary items. Net income
excluding these items is $6,796 for period ending February 29, 2000, $9,813
at Q4 of 1999; $8,784 Q3 of 1999; $7,389 at Q2 of 1999 and $6,560 at Q1 of
1999.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Bay Area Bancshares, Bay Commercial Services and Mt. Diablo
Bancshares on a pooling-of-interests basis.
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