<PAGE>
EXHIBIT 99.1
Press Release dated January 17, 2001
For Information Contact
-----------------------
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 REPORTS OVER 50% INCREASE IN YEAR END AND FOURTH QUARTER
2000 CORE OPERATING RESULTS
-Company Exceeds $5.0 Billion in Assets-
PALO ALTO, CA, January 17, 2001 -- Greater Bay Bancorp (Nasdaq: GBBK), a $5.1
billion in assets financial services holding company, today announced record
results for the fourth quarter and year ended December 31, 2000. Greater Bay
Bancorp's core earnings, which is its net income, excluding nonrecurring warrant
income and merger related expenses, for the fourth quarter of 2000 increased 53%
to $21.0 million, or $0.47 per diluted share, compared to $13.7 million, or
$0.33 per diluted share, in the fourth quarter of 1999.
Income, including nonrecurring warrant income and excluding nonrecurring merger
related expenses, increased to $21.5 million, or $0.48 per diluted share, for
the fourth quarter of 2000, compared to $18.2 million, or $0.43 per diluted
share, in the fourth quarter of 1999.
For the fourth quarter of 2000, net income increased to $18.0 million, or $0.41
per diluted share, compared to net income of $14.2 million, or $0.34 per diluted
share for the fourth quarter of 1999. Net income for the fourth quarter of 2000
included $870,000 in pre-tax nonrecurring warrant income and $4.6 million in
merger related expenses compared to $14.3 million of pre-tax nonrecurring
warrant income and $6.4 million in nonrecurring merger related expenses, for the
fourth quarter of 1999.
Based on its core earnings for the fourth quarter of 2000, Greater Bay Bancorp's
return on average equity was 26.38%, its return on average assets was 1.74% and
its efficiency ratio was 45.52%, while the fourth quarter of 1999 core earnings
resulted in a return on average equity of 23.65%, return on average assets of
1.45% and an efficiency ratio of 50.37%.
Greater Bay Bancorp's core earnings, which is its net income, excluding
nonrecurring warrant income and merger related expenses, for the year ended
December 31, 2000 also increased 53% to $70.7 million, or $1.62 per diluted
share, compared to $46.2 million, or $1.15 per diluted share, for the year ended
December 31, 1999.
<PAGE>
Income, including nonrecurring warrant income and excluding nonrecurring merger
related expenses, increased to $78.2 million, or $1.80 per diluted share, for
the year ended December 31, 2000, compared to $50.8 million, or $1.26 per
diluted share, for the year ended December 31, 1999.
For the year ended December 31, 2000, net income increased to $58.5 million, or
$1.35 per diluted share, compared to net income of $44.2 million, or $1.10 per
diluted share, for the year ended December 31, 1999. Net income for the year
ended December 31, 2000 included $13.0 million in pre-tax nonrecurring warrant
income and $30.1 million in merger related expenses compared to $14.5 million of
pre-tax nonrecurring warrant income and $10.3 million of nonrecurring merger
related expenses for the year ended December 31, 1999.
Based on its core earnings for the year ended December 31, 2000, Greater Bay
Bancorp's return on average equity was 24.08%, its return on average assets was
1.61% and its efficiency ratio was 46.36%, while for the year ended December 31
1999, Greater Bay Bancorp's core earnings resulted in a return on average equity
of 21.08%, return on average assets of 1.39% and an efficiency ratio of 54.45%.
Non-interest income, excluding warrant income, continues to grow, reflecting
Greater Bay Bancorp's efforts to further diversify and expand its revenue
stream. For the fourth quarter of 2000, the Company's trust fees, depositor
services fees, gain on sale of SBA loans, and loan and international banking
fees were $5.9 million, up 37% from $4.3 million in the fourth quarter of 1999.
At December 31, 2000, Greater Bay Bancorp's total assets were $5.1 billion, an
increase of 37% or $1.4 billion from December 31, 1999. Total loans grew to
$3.6 billion, an increase of 46% or $1.1 billion (34% excluding the Matsco
acquisition which resulted in the purchase accounting acquisition of $291
million in loans) from December 31, 1999, while total deposits increased to $4.2
billion, an increase of 28% or $902 million from December 31, 1999.
"Once again, our company had an outstanding year with a record 53% increase in
core earnings combined with quality asset growth in excess of 37%. Our Super
Community Banking Strategy, with its strong emphasis on our relationship banking
model, continues to be successful, as our operating results prove clients like
to do business in their local communities served by people they know and trust,"
said David Kalkbrenner, president and chief executive officer of Greater Bay
Bancorp.
Mr. Kalkbrenner added, "Greater Bay Bancorp continues to have record core
operating performance, with fourth quarter core EPS of $0.47 per diluted share,
the 16th consecutive quarter of earnings per share increases, and return on
-------------------------------------------------------------
average equity in the fourth quarter in excess of 26%, the 13th consecutive
----------------
quarter where shareholders' return on average equity exceeded 20%."
------------------------------------------------------------------
Mr. Kalkbrenner continued, "With the slowdown in the economy, the 50 basis point
rate decrease by the Federal Reserve should be a stimulus to keep the economy
growing. We believe this initial rate decrease will not have a significant
impact on our net interest margin or net income for 2001, as we are continuing
to experience good quality new business volume."
<PAGE>
Greater Bay Bancorp's allowance for loan losses increased to 2.32% of total
loans at December 31, 2000, compared to 2.18% at September 30, 2000 and 1.94% at
December 31, 1999, while its ratio of non-performing assets to total assets was
0.26% at December 31, 2000, compared to 0.36% at September 30, 2000 and 0.19% at
December 31, 1999. The allowance for loan losses was 635.70% of total non-
performing assets at December 31, 2000, compared to 413.94% at September 30,
2000 and 690.23% at December 31, 1999.
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.
Mr. Kalkbrenner commented, "Our ability to continue to support internal growth
while integrating four bank mergers during 2000 is a tribute to our high quality
people and their commitment to "deliver" for our clients and shareholders.
During the fourth quarter, we successfully integrated and converted the Bank of
Santa Clara and the Bank of Petaluma to Greater Bay systems. The acquisition of
The Matsco Companies, which is headquartered in Emeryville, California and
specializes in financial services for the dental and veterinary markets, closed
in November 2000 and we expect to fully integrate it during February 2001."
Looking Forward - 2001 Performance Goals
Looking toward 2001, Mr. Kalkbrenner stated, "Based on our current analysis of
business conditions in the San Francisco Bay Area and our opportunities to
expand current and prospective client relationships, we remain optimistic about
our prospects for 2001. During periods of economic uncertainty, well-
disciplined community banks in local markets always have opportunities to
attract excellent new business relationships from bigger banks who make
decisions not to serve certain market segments. We recognize that credit
---
quality may fluctuate during periods of economic uncertainty, but we are
positioned with a strong balance sheet and a client relationship focus that has
proven successful and which we believe will continue to be successful."
The following 2001 performance guidance, which was previously disclosed in a
press release dated November 27, 2000, remains unchanged based on expectations
of a soft "landing" in the Bay Area economy:
. Loan growth in the 20%-25% range
. Deposit growth 15%
. Revenue growth of 22%-27%
. Return on equity greater than 20%
. Return on average assets greater than 1.4%
. Efficiency ratio less than 48%
. Earnings per share growth of 17%-25%
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
<PAGE>
Francisco, the San Francisco Peninsula, the East Bay Region, the North Bay
Region and the Central Coastal Region.
Greater Bay Bancorp's fourth quarter earnings conference call is scheduled for
January 17, 2001 at 8:00 am PST. Investors have the opportunity to listen to the
conference call live on the Internet at http://www.vcall.com. Investors should
--------------------
go to the Vcall web site 15 minutes prior to the start of the call to register.
It may be necessary to download audio software to hear the conference call. To
do so investors should click on the Real Player icon and follow directions from
there. A replay of the conference call will be available through Vcall for 30
days. A replay of the conference call will also be available for seven days by
calling (703) 925-2435 or (888) 266-2086, code 4885141.
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, 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 regulation; (3) the
ability to successfully integrate recently completed mergers and acquisitions;
(4) the risks relating to the Company's warrant positions set forth in the
paragraph below; and (5) 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, 1999.
We have historically obtained rights to acquire stock, in the form of warrants,
in certain clients as part of negotiated credit facilities. We may not be able
to realize gains from these equity instruments in future periods due to
fluctuations in the market prices of the underlying common stock of these
companies. The timing and amount of income, if any, from the disposition of
client warrants typically depend upon factors beyond our control, including the
general condition of the public equity markets, levels of mergers and
acquisitions activity, and legal and contractual restrictions on our ability to
sell the underlying securities. Therefore, future gains cannot be predicted
with any degree of accuracy and are likely to vary materially from period to
period. In addition, a significant portion of the income we realize from the
disposition of client warrants may be offset by expenses related to our efforts
to build an infrastructure sufficient to support our present and future business
activities, as well as expenses incurred in evaluating and pursuing new business
opportunities.
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 -
<PAGE>
GREATER BAY BANCORP
DECEMBER 31, 2000 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2000 2000 2000 2000 1999
----------- ----------- ----------- ----------- -----------
Cash and Due From Banks ................................... $ 270,774 $ 243,207 $ 232,371 $ 182,642 $ 147,222
Investments ............................................... 1,100,333 1,085,257 1,110,239 1,187,241 999,623
Loans:
Commercial ......................................... 1,562,712 1,250,056 1,130,322 1,042,686 926,075
Term Real Estate - Commercial ...................... 967,428 890,127 869,226 834,146 764,034
----------- ----------- ----------- ----------- -----------
Total Commercial ................................. 2,530,140 2,140,183 1,999,548 1,876,832 1,690,109
Construction ....................................... 691,912 581,956 516,998 494,099 479,163
Real Estate - Other ................................ 176,568 174,997 127,571 126,363 140,852
Consumer and Other ................................. 216,459 206,632 209,019 172,571 167,257
Deferred Loan Fees, Net ............................ (13,657) (13,440) (13,829) (13,066) (12,911)
----------- ----------- ----------- ----------- -----------
Total Loans ...................................... 3,601,422 3,090,328 2,839,307 2,656,799 2,464,470
Allowance for Loan Losses ....................... (84,014) (67,637) (58,578) (52,852) (48,047)
----------- ----------- ----------- ----------- -----------
Total Loans, Net ................................... 3,517,408 3,022,691 2,780,729 2,603,947 2,416,423
Other Assets .............................................. 241,863 196,914 195,746 194,001 173,461
Total Assets .............................................. $ 5,130,378 $ 4,548,069 $ 4,319,085 $ 4,167,831 $ 3,736,729
========== ========== =========== =========== ===========
Deposits:
Demand, Non-Interest Bearing ....................... $ 1,003,828 $ 899,496 $ 851,590 $ 847,815 $ 727,613
NOW, MMDA and Savings ............................. 2,082,708 2,132,184 2,032,360 2,070,090 1,838,868
Time Certificates, $100,000 and over ............... 784,118 737,533 675,031 589,072 534,662
Other Time Certificates ............................ 294,407 156,125 157,554 145,221 161,745
----------- ----------- ----------- ----------- -----------
Total Deposits ................................... 4,165,061 3,925,338 3,716,535 3,652,198 3,262,888
----------- ----------- ----------- ----------- -----------
Other Borrowings .......................................... 431,228 135,313 156,037 116,092 117,0
Other Liabilities ......................................... 112,224 87,702 60,368 61,598 54,894
Total Liabilities ................................ 4,708,513 4,148,353 3,932,940 3,829,888 3,434,834
----------- ----------- ----------- ----------- -----------
Trust Preferred Securities ................................ 99,500 99,500 99,500 58,500 49,000
Stockholders' Equity ...................................... 322,365 300,216 286,645 279,443 252,895
----------- ----------- ----------- ----------- -----------
Total Liabilities and Shareholders' Equity ................ $ 5,130,378 $ 4,548,069 $ 4,319,085 $ 4,167,831 $ 3,736,729
=========== =========== =========== =========== ===========
Average Quarterly Total Loans, excluding Nonaccrual ....... $ 3,326,505 $ 2,962,402 $ 2,826,612 $ 2,553,083 $ 2,326,382
Average Quarterly Investments ............................. $ 1,095,752 $ 1,225,598 $ 1,154,824 $ 1,138,163 $ 1,091,046
Average Quarterly Interest Earning Assets ................. $ 4,422,257 $ 4,188,000 $ 3,981,436 $ 3,691,246 $ 3,417,428
Average Quarterly Interest Bearing Liabilities ............ $ 3,334,513 $ 3,044,342 $ 2,972,538 $ 2,819,566 $ 2,699,848
Average Quarterly Assets .................................. $ 4,783,445 $ 4,532,392 $ 4,213,203 $ 3,979,375 $ 3,752,978
Average Quarterly Equity .................................. $ 316,331 $ 301,644 $ 284,653 $ 269,530 $ 230,644
Total Regulatory Capital
Tier I or Leverage Capital ......................... $ 417,847 $ 412,724 $ 385,854 $ 346,472 $ 302,073
Total Capital ...................................... $ 475,891 $ 462,807 $ 447,301 $ 390,554 $ 343,091
Nonperforming Assets
Nonaccrual Loans ................................... $ 12,493 $ 14,884 $ 8,779 $ 6,327 $ 5,744
Loans 90 Days Past Due & Accruing (1) .............. 723 641 712 41 139
Restructured Loans ................................. -- 420 420 743 807
OREO ............................................... -- 395 229 271 271
----------- ----------- ----------- ----------- -----------
Total Nonperforming Assets ................................ $ 13,216 $ 16,340 $ 10,140 $ 7,382 $ 6,961
=========== =========== =========== =========== ===========
Greater Bay Trust Company Assets .......................... $ 773,791 $ 838,659 $ 795,042 $ 751,677 $ 697,435
</TABLE>
SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION RATIOS:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2000 2000 2000 2000 2000
----------- ----------- ----------- ----------- -----------
Loan to Deposit Ratio (including $291 million
Matsco loans accounted for as a Purchase) ................ 86.47% 78.73% 76.40% 72.75% 75.53%
Loan to Deposit Ratio (excluding Matsco loans)............ 79.47% 78.73% 76.40% 72.75% 75.53%
Ratio of Allowance for Loan Losses to:
Total Loans ....................................... 2.32% 2.18% 2.05% 1.98% 1.94%
Total Nonperforming Assets ........................ 635.70% 413.94% 577.69% 715.96% 690.23%
Total Nonperforming Assets to Total Assets ................ 0.26% 0.36% 0.23% 0.18% 0.19%
Ratio of Quarterly Net Charge-offs to Average Loans,
annualized ............................................... 0.31% 0.37% 0.58% 0.26% 0.22%
Ratio of YTD Net Charge-offs to YTD Average Loans,
annualized ............................................... 0.38% 0.41% 0.44% 0.26% 0.09%
Internal Loan Growth, Annualized (including $291 million
Matsco loans accounted for as a Purchase) ................ 65.79% 35.17% 27.63 31.39% 36.87%
Internal Loan Growth, Annualized (excluding Matsco loans) . 28.28% 35.17% 27.63 31.39% 36.87%
Recurring Revenue Growth, Annualized (including
$291 million Matsco loans accounted for as a Purchase) ... 32.62% 20.97% 38.33% 19.14% 54.51%
Recurring Revenue Growth, Annualized (excluding Matsco
loans) ................................................... 22.67% 20.97% 38.33% 19.14% 54.51%
Average Earning Assets to Average Total Assets ............ 92.45% 92.40% 94.50% 92.76% 91.06%
Average Earning Assets to Average Interest-Bearing
Liabilities .............................................. 132.62% 137.57% 133.94% 130.92% 126.58%
Capital Ratios:
Leverage .......................................... 8.77% 9.11% 9.16% 8.71% 8.05%
Tier 1 Risk Based Capital ......................... 9.40% 10.83% 10.87% 10.30% 9.75%
Total Risk Based Capital .......................... 10.70% 12.14% 12.61% 11.62% 11.07%
Risk Weighted Assets ...................................... $ 4,446,088 $ 3,812,504 $3,548,503 $ 3,362,293 $ 3,098,774
Book Value Per Share (2) .................................. $ 7.69 $ 7.21 $ 6.94 $ 6.80 $ 6.38
Total Shares Outstanding (2) .............................. 41,929,173 41,648,016 41,284,372 41,121,745 39,635,048
</TABLE>
(1) Subsequent to year-end a loan totaling aprroximately $500,000 was paid
current. In addition, three loans totaling $3.7 million were paid off in
January 2001 and not included in the above totals.
(2) Prior periods have been restated for the 2 for 1 stock split effective
October 4, 2000.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Mt. Diablo Bancshares, Coast Bancorp., Bank of Santa Clara and Bank
of Petaluma on a pooling-of-interests basis.
<PAGE>
GREATER BAY BANCORP
DECEMBER 31, 2000 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
<TABLE>
<CAPTION>
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
2000 2000 2000 2000 1999
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Interest Income ....................................... $104,376 $ 96,612 $ 87,538 $ 79,837 $ 73,124
Interest Expense (6) .................................. 38,898 36,852 31,017 29,633 26,412
--------- --------- --------- --------- ---------
Net Interest Income Before Provision for
Loan Losses ................................... 65,478 59,760 56,521 50,204 46,712
Provision for Loan Losses ............................. 6,316 7,844 8,312 5,624 6,383
--------- --------- --------- --------- ---------
Net Interest Income After Provision for
Loan Losses ................................... 59,162 51,916 48,209 44,580 40,329
Other Income:
Trust Fees ............................................ 954 822 827 847 774
Depositor Service Fees ................................ 2,034 2,219 2,194 2,147 1,426
ATM Fees .............................................. 748 817 676 650 581
Loan and International Banking Fees ................... 2,562 2,497 1,927 1,176 1,959
Gain on Sale of SBA Loans ............................. 312 429 753 696 143
Gain/(loss) on Investments ............................ 21 3 58 (1) (37)
Other Income (1) ...................................... 1,289 1,288 1,482 3,112 4,601
--------- --------- --------- --------- ---------
7,920 8,075 7,917 8,627 9,447
Nonrecurring - Warrant Income (4) ..................... 870 2,767 740 8,609 14,278
--------- --------- --------- --------- ---------
Other Income ........................................ 8,790 10,842 8,657 17,236 23,725
Operating Expenses:
Compensation and Benefits ............................. 17,449 15,792 15,258 15,825 15,383
Occupancy and Equipment ............................... 5,711 5,575 5,117 5,285 4,628
Professional Services & Legal ......................... 1,083 1,312 1,199 1,110 594
Client Services ....................................... 563 477 496 545 489
FDIC Insurance and Assessments ........................ 356 379 251 250 113
Other Real Estate, Net ................................ 5 -- 41 10 (53)
Other Expenses (6) .................................... 8,241 6,980 7,092 6,210 7,135
--------- --------- --------- --------- ---------
Total Operating Expenses ............................ 33,408 30,515 29,454 29,235 40,126
--------- --------- --------- --------- ---------
Income Before Income Taxes, Merger and Other Related
Nonrecurring Costs ............................ 34,544 32,243 27,412 32,581 23,928
Income Taxes:
Income Tax Expense .................................... 12,695 11,173 9,953 9,306 7,739
Nonrecurring Income Tax Expense (4) ................... 366 1,164 290 3,590 (2,046)
--------- --------- --------- --------- ---------
Total Income Tax Expense ............................ 13,061 12,337 10,243 12,896 5,693
Income Before Merger and Other Related Nonrecurring
Costs ................................................ 21,483 19,906 17,169 19,685 18,235
Merger and Other Related Nonrecurring Costs, net
of tax (4) ........................................... 3,533 7,037 6,744 2,389 3,995
--------- --------- --------- --------- ---------
Net Income .................................... $ 17,950 $ 12,869 $ 10,425 $ 17,296 $ 14,240
========= ========= ========= ========= =========
SELECTED QUARTERLY CONSOLIDATED OPERATING RATIOS:
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
2000 2000 2000 2000 1999
Income Per Share (Before Nonrecurring and Merger
Items) (4), (5)
Basic ......................................... $0.50 $0.44 $0.41 $0.37 $0.35
Diluted ....................................... $0.47 $0.42 $0.39 $0.35 $0.33
Income Per Share (Before Merger Items) (5)
Basic ......................................... $0.51 $0.48 $0.42 $0.49 $0.46
Diluted ....................................... $0.48 $0.46 $0.40 $0.47 $0.43
Net Income Per Share (5)
Basic ......................................... $0.43 $0.31 $0.25 $0.43 $0.36
Diluted ....................................... $0.41 $0.29 $0.24 $0.42 $0.34
Weighted Average Common Shares Outstanding (5) ........ 41,817,000 41,448,000 41,207,000 39,784,000 39,612,000
Weighted Average Common and Common Equivalent
Shares Outstanding (5) ............................... 44,319,000 43,676,000 42,913,000 41,632,000 41,964,000
Return on Period Average Assets, annualized (3) ....... 1.74% 1.61% 1.60% 1.48% 1.45%
Return on Period Average Equity, annualized (3) ....... 26.38% 24.14% 23.62% 21.88% 23.65%
Net Interest Margin - Average Earning Assets (6) ...... 5.89% 5.68% 5.71% 5.47% 5.42%
Operating Expense Ratio (Before Nonrecurring and
Merger Items) (6) .................................... 2.78% 2.68% 2.81% 2.95% 2.99%
Efficiency Ratio (Before Nonrecurring and Merger
Items, including $291 million Matsco loans accounted
for as a Purchase) (6) ............................... 45.52% 44.98% 45.71% 49.69% 50.37%
Efficiency Ratio (Before Nonrecurring and Merger Items,
excluding Matsco loans) (6) .......................... 43.85% 44.98% 45.71% 49.69% 50.37%
</TABLE>
(1) Q1 2000 and Q4 1999 include a $2.1 million and $3.1 million gain on an
equity investment, respectively.
(2) Q4 of 1999 Nonrecurring Expenses are comprised of $7.4 million in donations
to the GBB Foundation.
(3) Before Nonrecurring and Merger Items of $3.0 million, net of tax, in Q4
2000; $5.4 million, net of tax, in Q3 2000; $6.3 million, net of tax, in Q2
2000; $2.6 million, net of tax, in Q1 2000 and $492,000, net of tax, in Q4 1999.
(4) Components of Nonrecurring and Merger Items. Net Income excluding these
items is $20,979 for Q4 2000, $18,303 for Q3 2000, $16,719 for Q2 2000, $14,666
for Q1 2000 and $13,748 for Q4 1999.
(5) Prior periods have been restated for the 2 for 1 stock split effective
October 4, 2000.
(6) The expense for dividends paid on Trust Preferred Securities is included in
operating expenses for all periods presented. In prior press releases, this
expense was classified as interest expense.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Mt. Diablo Bancshares, Coast Bancorp., Bank of Santa Clara and Bank
of Petaluma on a pooling-of-interests basis.
<PAGE>
[.EX99_1]
GREATER BAY BANCORP
December 31, 2000 - FINANCIAL SUMMARY
($ in 000's, except share and per share data)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
SELECTED YEAR TO DATE CONSOLIDATED OPERATING DATA:
Dec 31, 2000 Dec 31, 1999
-------------------- ---------------------
<S> <C> <C>
Interest Income $ 368,363 $ 255,377
Interest Expense (6) 136,400 90,817
-------------------- ---------------------
Net Interest Income Before Provision for Loan Losses 231,963 164,560
Provision for Loan Losses 28,096 14,039
-------------------- ---------------------
Net Interest Income After Provision for Loan Losses 203,867 150,521
Other Income (1) 32,539 28,471
Nonrecurring - Warrant Income 12,986 14,508
-------------------- ---------------------
Total Other Income 45,525 42,979
Operating Expenses (6) 122,612 105,114
Other Expenses - nonrecurring (2) - 12,160
-------------------- ---------------------
Total Operating Expenses 122,612 117,274
-------------------- ---------------------
Net Income Before Income Taxes, Merger and Other Related
Nonrecurring Costs and Extraordinary Items 126,780 76,226
Income Tax Expense 48,537 25,468
-------------------- ---------------------
Net Income Before Merger and Other Related Nonrecurring
Costs and Extraordinary Items 78,243 50,758
Merger and Other Related Nonrecurring Costs, net of tax 19,703 6,486
-------------------- ---------------------
Net Income Before Extraordinary Items 58,540 44,272
Extraordinary Items (3) - (88)
-------------------- ---------------------
Net Income $ 58,540 $ 44,184
==================== =====================
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SELECTED YEAR TO DATE CONSOLIDATED OPERATING RATIOS:
Dec 31, 2000 Dec 31, 1999
-------------------- ---------------------
Net Income Per Share (Before Nonrecurring, Merger and Extraordinary
Items) (4), (5)
<S> <C> <C>
Basic $ 1.71 $ 1.21
Diluted $ 1.62 $ 1.15
Net Income Per Share (Before Merger and Extraordinary Items) (5)
Basic $ 1.90 $ 1.33
Diluted $ 1.80 $ 1.26
Net Income Per Share (5)
Basic $ 1.42 $ 1.16
Diluted $ 1.35 $ 1.10
Weighted Average Common Shares Outstanding (5) 41,229,000 38,245,000
Weighted Average Common & Common Equivalent Shares Outstanding (5) 43,505,000 40,304,000
Return on Average Assets, annualized (4) 1.61% 1.39%
Return on Average Equity, annualized (4) 24.08% 21.08%
Net Interest Margin - Average Earning Assets (6) 5.72% 5.39%
Operating Expense Ratio (Before Nonrecurring and Extraordinary
Items) (6) 2.80% 3.17%
Efficiency Ratio (Before Nonrecurring, Merger and
Extraordinary Items, including $291 million Matsco loans
accounted for as a Purchase) (6) 46.36% 54.45%
Efficiency Ratio (Before Nonrecurring, Merger and
Extraordinary Items, excluding Matsco loans) (6) 46.19% 54.45%
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</TABLE>
(1) 2000 and 1999 include a $2.1 million and $3.1 million gain on an equity
investment respectively.
(2) 1999 nonrecurring expenses are comprised of a $7.8 million donation to the
GBB Foundation.
(3) 1999 includes $88,000 loss on early retirement of subordinated debt.
(4) Before Merger and Other Related Nonrecurring Costs and Extraordinary
Items of $19.7 million, net of tax in 2000 and $6.5 million, net of tax,
in 1999.
(5) Prior periods have been restated for the 2 for 1 stock split effective
October 4, 2000.
(6) The expense for dividends paid on Trust Preferred Securities is included in
operating expenses for all periods presented. In prior press releases, this
expense was classified as interest expense.
Note: Prior periods have been restated to reflect the mergers between Greater
Bay Bancorp, Mt. Diablo Bancshares, Coast Bancorp., Bank of Santa Clara
and Bank of Petaluma on a pooling-of-interests basis.
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