<PAGE>
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)
June 18, 1997
Bay View Capital Corporation
(Exact name of registrant as specified in its charter)
Delaware 0-17901 94-3078031
(State or other (Commission File No.) (IRS Employer)
jurisdiction of Identification
incorporation) No.)
2121 South El Camino Real, San Mateo, California 94403
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415)
573-7300
N/A
(Former name or former address, if changed since last report)
<PAGE>
<PAGE>
Item 5. Other Events.
Bay View Capital Corporation (the "Company") is filing
herewith certain materials that may be presented by the Company
to financial analysts. Such materials are included as Exhibit 99
to this Report and incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99 Certain materials which may be presented to
financial analysts
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned hereunto duly authorized.
BAY VIEW CAPITAL CORPORATION
Date: June 18, 1997 By:/s/ David A. Heaberlin
David A. Heaberlin
Executive Vice President
and Chief Financial
Officer
<PAGE>
<PAGE>
EXHIBIT INDEX
Exhibit Sequential
Number Description Page No.
99 Certain materials which may be
presented to financial analysts
<PAGE>
<PAGE> 1
PIPER JAFFRAY
INVESTOR CONFERENCE PRESENTATION
JUNE 19, 1997
---------------------------------
David A. Heaberlin
Executive Vice President & Chief Financial Officer, Bay View
Capital Corporation and Executive Vice President & Chief
Operating Officer, Bay View Bank
Statements contained in this presentation that are not historical
facts may be forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934 and Section
27A of the Securities Act of 1933. Certain of such statements
are identified as being based on consensus estimates (by analysts
not affiliated with Bay View). Further, such statements are
subject to important factors that could cause actual results to
differ materially from those in this presentation, including the
following: regional and national economic conditions; changes in
the levels of market interest rates; credit risks of real estate,
consumer, commercial and other lending activities; regulatory
factors; changes in the market value of Bay View common stock and
the ability to repurchase same; Bay View's ability to achieve
synergies in the CGC and Eureka acquisitions and to sustain or
improve performance of CTL, CGC and Eureka; and the ability to
identify suitable future acquisition candidates.<PAGE>
<PAGE> 2
TABLE OF CONTENTS
- -----------------
Corporate/Strategic Overview
1996/1997 First Quarter Financial Highlights
Consumer Finance Platform
Commercial Finance Platform
Banking/Depository Platform
- Eureka Acquisition
1997/1999 Outlook
Conclusion<PAGE>
<PAGE> 3
CORPORATE/STRATEGIC OVERVIEW
----------------------------<PAGE>
<PAGE> 4
CORPORATE/STRATEGIC OVERVIEW
- ----------------------------
Bay View Capital Corporation (BVCC) is a Diversified Financial
Services Company Which Currently Operates From Three Business
Platforms Located in Nearly 20 States
Consumer/Auto Finance Platform
$200 Million Annual Origination (CTL)
$100 Million Annual Origination (UF)
Commercial Finance Platform (CGC)
$75 Million in Assets
Banking/Depository Platform (BVB)
$2.8 Billion in Assets
$5.0 Billion in Assets (Including EurekaBank Acquisition
Expected to Close on or About December 31, 1997)<PAGE>
<PAGE> 5
CORPORATE/STRATEGIC OVERVIEW
(continued)
- ----------------------------
Mission Statement
"To Build a Diversified Financial Services Company By Investing
In and Creating Niche Lending Generating Companies That Originate
High Yielding Assets Maximizing Per Share Market Value"<PAGE>
<PAGE> 6
CORPORATE/STRATEGIC OVERVIEW
(continued)
- ----------------------------
Strategic Redirection
Management Focus on Diversification of BVCC
BVB Focus:
Deposit Franchise Enhancement
Shrink Banking Platform to Optimum Core Deposit Base
BVCC Focus:
Shareholder Value Enhancement
Acquisition or Creation of Niche Asset Generation
California Thrift & Loan
Concord Growth Corporation
Ultra Funding
De-Emphasize Less Profitable Elements of BVCC Companies
Residential Mortgage Loan Origination of BVB
(EurekaBank??)
Indirect Leasing at CTL<PAGE>
<PAGE> 7
CORPORATE/STRATEGIC OVERVIEW
Capital Strategy
- ----------------------------
Maintain All Regulated Entities' Capital at "Well Capitalized"
Requirements
Migrate Excess Capital to BVCC for Redeployment Through
Acquisitions and/or Share Repurchases
Repurchase Shares
1,000,000 + Share Repurchase Completed in 1996/First Quarter
1997
Represents Nearly 15% of Year-End 1995 Shares Outstanding
Average Repurchase Price: $36.89<PAGE>
<PAGE> 8
CORPORATE/STRATEGIC OVERVIEW
Capital Strategy (continued)
- ----------------------------
Current Unexecuted Share Repurchase Authorization Approximates
$37 Million (Roughly 1,500,000 Shares at $25 Per Share) When
Combined with $12 Million Remaining from January 1997 $25 Million
Authorization
When Completed BVCC Will Have Repurchased Approximately 3,600,000
Shares or Nearly 25% of the BVCC Shares Outstanding When the
Initial Share Repurchase Program Was Announced<PAGE>
<PAGE> 9
1996/FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS
--------------------------------------------<PAGE>
<PAGE> 10
1996 FINANCIAL HIGHLIGHTS
- -------------------------
1996 Net Income (Before SAIF Recapitalization Charge):
$17.7 Million (All Core) $2.55 EPS*
SAIF Recapitalization Charge:
$6.7 Million or $.97 EPS*
1996 Net Income:
$11.0 Million or $1.58 EPS*
* Pre-June 3, 1997 2 for 1 Stock Split<PAGE>
<PAGE> 11
1996 FINANCIAL HIGHLIGHTS (continued)
- -------------------------------------
1996 Financial Performance Excluding SAIF Recapitalization
Charge:
Exceeded Consensus by $.04 Per Share
Exceeded Prior Year (Excluding Non-Recurring Charges) by $1.64
Per Share (65%)*
Tangible Cash Basis EPS (Excludes Goodwill Amortization) =
$2.93 Per Share*
* Pre-June 3, 1997 2-for-1 Stock Split<PAGE>
<PAGE> 12
1996 FINANCIAL HIGHLIGHTS (continued)
- -------------------------------------
The graph appearing at this point illustrates approximate
net income for the years 1992 through 1996, as follows: 1992, $10
million; 1993, $12.5 million; 1994, $14.5 million; 1995, $6.6
million (excluding special mention items); 1996, $17.7 million
(excluding special mention items).<PAGE>
<PAGE> 13
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS
- ---------------------------------------
First Quarter 1997 Net Income:
$5.3 Million (All Core) or $.78 EPS*
Consistent With Zacks' Consensus of $.78*
39% Growth From $.56 EPS for First Quarter of 1996*
8.3% Growth From Fourth Quarter 1996 (Excluding Non-Recurring
Charges)
Tangible Cash Basis EPS (Excludes Goodwill Amortization) =
$.92 per share*
*Pre- June 3, 1997 2 for 1 Stock Split<PAGE>
<PAGE> 14
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
First Quarter Net Income by Business Platform
<TABLE>
<CAPTION>
Dollar EPS
------ -----
<S> <C> <C>
Banking/Depository Platform $4,678 $0.69*
Consumer Finance Platform $ 584 $0.09*
Commercial Finance Platform** $ --- $ ---
------ -----
Total $5,262 $0.78*
------ -----
</TABLE>
*Pre-June 3, 1997 2 for 1 Stock Split
**No impact in First Quarter 1997
<PAGE>
<PAGE> 15
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
Bay View Securitization Corporation Securitized $253 Million of
High Quality/Non Sub-Prime Auto Loans
Embedded Funding Cost = 40 BP Over Two Year Treasury (6.75%)
Majority of Gain Utilized to Reduce CTL Acquisition
Cost/Goodwill
$925,000 First Quarter Pre-Tax Gain Recognized
Represents Market Rate Improvement Between Acquisition Date
and Sale Date
<PAGE>
<PAGE> 16
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates interest
margin as follows: December 1995: Bay View Bank Net Margin,
2.01%,Company's Consolidated Net Margin, 2.01%; March 1996: Bay
View Bank Net Margin, 2.21%, Company's Consolidated Net Margin,
2.21%; September 1996: Bay View Bank Net Margin, 2.45%,
California Thrift and Loan ("CTL") Net Margin, 5.35%; Company's
Consolidated Net Margin, 2.78%; December 1996: Bay View Bank Net
Margin, 2.51%, CTL Net Margin, 5.06%, Company's Consolidated Net
Margin, 2.79%; March 1997: Bay View Bank Net Margin, 2.56%; CTL
Net Margin, 5.03%; Company's Consolidated Net Margin, 2.72%.
Note: Consolidated Net Interest Margin for April 1997 was
2.87%, which included the impact of Concord Growth Corporation's
Net Interest Margin of 19.36%.
<PAGE>
<PAGE> 17
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point sets forth information
concerning retail deposits, as follows: June 1995: Certificates
of Deposit ("CD"): $1.46 billion; Transaction Accounts: $.37
billion; Transaction Accounts as a percentage of total deposits:
20.32%; September 1995 CDs: $1.48 billion; Transaction Accounts:
$.36 billion; Transaction Accounts as a percentage of deposits:
19.71%; December 1995 CDs: $1.43 billion; Transaction Accounts:
$.39 billion; Transaction Accounts as a percentage of deposits:
21.30%; June 1996 CDs: $1.29 billion; Transaction Accounts: $.45
billion; Transaction Accounts as a percentage of deposits:
25.81%; September 1996 CDs: $1.17 billion; Transaction Accounts:
$.46 billion; Transaction Accounts as a percentage of deposits:
28.05%; December 1996 CDs: $1.10 billion; Transaction Accounts:
$.48 billion; Transaction Accounts as a percentage of deposits:
30.27%; March 1997 CDs: $1.06 billion: Transaction Accounts: $.47
billion; Transaction Accounts as a percentage of deposits:
30.80%.
<PAGE>
<PAGE> 18
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates Bay View
Bank's retail deposit costs spread from the Cost of Funds Index,
as follows: June 1995: 13 basis points; September 1995: 20 basis
points; December 1995: 12 basis points; March 1996: 16 basis
points; June 1996: 7 basis points; September 1996: -18 basis
points; December 1996: -24 basis points; March 1997: -23 basis
points.
<PAGE>
<PAGE> 19
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates, on a
consolidated basis, the Company's non-performing assets and
troubled debt restructurings as a percentage of assets, as
follows: December 1992: 3.48%; December 1993: 3.25%; December
1994: 2.04%; December 1995: 1.81%; December 1996: 0.76%; March
1997: 0.76%.
<PAGE>
<PAGE> 20
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates Bay View
Bank's non-performing assets and troubled debt restructurings as
a percentage of assets, as follows: December 1992: 3.48%;
December 1993: 3.25%; December 1994: 2.04%; December 1995: 1.81%;
December 1996: 0.65%; March 1997: 0.64%.
<PAGE>
<PAGE> 21
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates California
Thrift and Loan's non-performing assets and troubled debt
restructurings, as follows: June 1996: $6,468,000; September
1996: $6,659,000; December 1996: $5,381,000; March 1997:
$5,137,000.
<PAGE>
<PAGE> 22
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates, on a
consolidated basis, the Company's ratios of loss reserve and
adequacy reserves to non-performing assets, as follows: December
1992: 58%; December 1993: 49%; December 1994: 62%; December 1995:
80% September 1996: 169%; December 1996: 150%; March 1997: 127%.
<PAGE>
<PAGE> 23
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates, on a
consolidated basis, the Company's general and administrative
expenses, as follows: 1994: $47.3 million; 1995: $47.4 million;
1996: $52.8 million (excludes special mention items and includes
California Thrift and Loan beginning June 1996); March 1997:
$56.8 million (annualized; excludes special mention items).
<PAGE>
<PAGE> 24
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates Bay View
Bank's general and administrative expenses as follows: December
1993: $46.9 million; December 1994: $46.8 million; December 1995:
$46.9 million (excludes special mention items); December 1996:
$40.4 million; March 1997: $38.8 million (annualized; excludes
special mention items).
<PAGE>
<PAGE> 25
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates the staffing
levels for Bay View Capital Corporation and Bay View Bank, as
follows: December 1994: 480.6 full-time equivalents ("FTEs");
March 1995: 446.6 FTEs; June 1995: 434.8 FTEs; December 1995:
402.2 FTEs; June 1996: 384 FTEs; September 1996: 384 FTEs;
December 1996: 383 FTEs; March 1997: 381 FTEs.
<PAGE>
<PAGE> 26
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates the staffing
levels of California Thrift and Loan, as follows: January 1996:
208 full-time equivalents ("FTEs"); September 1996: 208 FTEs;
December 1996: 193 FTEs; March 1997: 158 FTEs.
<PAGE>
<PAGE> 27
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point illustrates, for Bay View
Bank, the percentage of general and administrative expenses to
average assets, as follows: March 1995: 1.51%; June 1995: 1.68%;
September 1995: 1.40%; December 1995: 1.42%; March 1996: 1.45%;
June 1996: 1.44%; September 1996: 1.44% (excludes SAIF
recapitalization charge and special mention items); December
1996: 1.42% (excludes SAIF recapitalization charge and special
mention items); March 1997: 1.35% (excludes SAIF recapitalization
charge and special mention items).
<PAGE>
<PAGE> 28
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
The graph appearing at this point indicates the efficiency
ratio for Bay View Bank, as follows: March 1995: 71.2%; June
1995: 83.9%; September 1995: 67.9%; December 1995: 66.3%; March
1996: 58.7%; June 1996: 57.38% (excludes SAIF recapitalization
charge and special mention items); December 1996: 54.5% (excludes
SAIF recapitalization charge and special mention items); March
1997: 48.5% (excludes SAIF recapitalization charge and special
mention items).
<PAGE>
<PAGE> 29
FIRST QUARTER 1997 FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------
$25 Million Share Repurchase Authorized in January, 1997
Repurchased 228,000 Shares During First Quarter
Total Shares Repurchased Aggregate 1,028,000
Average Repurchase Cost:
First Quarter 1997 = $54.17 per share*
Total Repurchases = $36.89 per share*
Approximately $12 Million of Share Repurchase Authorization
Remains
Roughly 500,000 Shares @ $25 per share
*Pre-June 3, 1997 2 for 1 Stock Split
<PAGE>
<PAGE> 30
1996/1997 HIGHLIGHTS
- --------------------
The graph at this point sets forth the Company's stock
price, adjusted for the June 3, 1997 2 for 1 stock split: March
1995: $11.63; June 1995: $13.63; September 1995: $13.50; December
1995: $14.25; March 1996: $16.25; June 1996: $17.00; September
1996: $17.81; December 1996: $21.19; March 1997: $28.38; May
1997: $25.13.
<PAGE>
<PAGE> 31
1996/1997 HIGHLIGHTS
- --------------------
The graph appearing at this point illustrates the market
capitalization of the Company's common stock, as follows:
March 1995: $168,111,000; June 1995: $200,440,000; September
1995: $199,630,000; December 1995: $200,395,000; March 1996:
$224,260,000; June 1996: $234,098,000; September 1996:
$236,592,000; December 1996: $282,871,000; March 1997:
$367,064,000; May 1997: $325,940,000.
<PAGE>
<PAGE> 32
CONSUMER FINANCE PLATFORM
- -------------------------
<PAGE>
<PAGE> 33
CONSUMER FINANCE PLATFORM
- -------------------------
Acquired CTL in June, 1996
CTL has 30+ Year History
Acquired by Cal Fed and Spun-Off in 1993
Primary Focus: Non-Sub-Prime Auto Finance Niche Lender (A-/B+)
Strong Underwriting/High Yields (13+%)
High Quality Assets (Annual Losses 1.40%)
<PAGE>
<PAGE> 34
CONSUMER FINANCE PLATFORM (continued)
- -------------------------------------
The map appearing at this point indicates the locations of
CTL's marketing area and offices, as follows: Portland, OR;
Redding, CA; Sacramento, CA; Stockton, CA; Concord, CA; Fresno,
CA; Burlingame, CA; San Jose, CA; Bakersfield, CA; Santa
Barbara, CA; Woodland Hills, CA; Covina, CA; Riverside, CA; Costa
Mesa, CA; San Diego, CA; Phoenix, AZ; Dallas, TX; San Antonio,
TX; Houston, TX; Indiana; Bloomington, IL; Chicago, IL; Denver,
CO; Nevada.<PAGE>
<PAGE> 35
CONSUMER FINANCE PLATFORM (continued)
- -------------------------------------
The graph appearing at this point indicates the amount of
California Thrift and Loan's Auto Originations, as follows: 1994:
$156 million; 1995: $142 million; 1996: $175 million; Four months
- - 1996: $63 million; four months 1997: $54 million.<PAGE>
<PAGE> 36
CONSUMER FINANCE PLATFORM (continued)
- -------------------------------------
Restructure of CTL
Transition to "Pure" Finance Company Nearly Complete
Sale of $60 Million Equipment Leasing Portfolio Completed
Securitization of $253 Million of Auto Receivables Completed in
January
Future Securitizations Unlikely Due to EurekaBank Acquisition
<PAGE>
<PAGE> 37
CONSUMER FINANCE PLATFORM (continued)
- -------------------------------------
Restructure of CTL (continued)
Redemption of $267 Million of High Cost Deposits
Sale of Low Costs Deposits and Earning Assets to BVB by June
30, 1997
Sale of Santa Barbara Corporate Headquarters
Relocated to Covina (Los Angeles)
Strategic Alliance - Ultra Funding - Texas
High Quality, Bank Prime Lender
Annual Originations = $120+ Million
Annual Losses = .30 - .50%<PAGE>
<PAGE> 38
CONSUMER FINANCE PLATFORM (continued)
- -------------------------------------
Restructure of CTL (continued)
Asset Sales/Securitization Combined with Deposit
Sales/Redemptions and Loan Sales
Enabled $15 Million of Capital Returned to BVCC by 12/31/96
Enabled Further Return of Capital of $26 Million During First
Quarter
Return of Substantially All Remaining Capital (Out of the $62
Million Purchase Price) to BVCC by June 30, 1997
CTL Conclusion:
Acquired $175 Million Annual High Quality Auto Loan Origination
Capability for Roughly $7 Million<PAGE>
<PAGE> 39
COMMERCIAL FINANCE PLATFORM
- ---------------------------<PAGE>
<PAGE> 40
COMMERCIAL FINANCE PLATFORM
- ---------------------------
Concord Growth Corporation's (CGC) Corporate Vision:
"To Become the Preeminent Nationwide Provider of Asset Based
Financing to Small Businesses*"
Acquired CGC in April, 1997
Assets Approximate $75 Million
*$50,000 - $2,000,000 Transaction Size
<PAGE>
<PAGE> 41
COMMERCIAL FINANCE PLATFORM
(continued)
- ---------------------------
CGC Has Two Primary Product Lines:
Transactional Lending
Accounts Receivable Factoring
Single Invoice Financing
Interactive Accounts Receivable Financing
Receivable Portfolio Financing
These Products Represent Approximately 1/3 of Assets
Annual Yields Approximate 45%+
Annual Losses Approximate 1%
<PAGE>
<PAGE> 42
COMMERCIAL FINANCE PLATFORM
(continued)
- ---------------------------
CGC Has Two Primary Product Lines (continued):
Asset Based Lending
Accounts Receivable
Inventory
Machinery & Equipment
These Products Represent Approximately 2/3 of Assets
Annual Yields Approximate 18-20%
Annual Losses Approximate 2.00 - 2.25%
<PAGE>
<PAGE> 43
COMMERCIAL FINANCE PLATFORM
(continued)
- ---------------------------
The map appearing at this point indicates the location of
the offices of Concord Growth Corporation: San Jose, CA; Newport
Beach, CA; Sherman Oaks, CA; Upland, CA; Phoenix, AZ; Arlington,
TX; Miami, FL; Atlanta, GA; Charlotte, NC; Columbia, MD; New
Castle, DE; Milwaukee, WI; St. Paul, MN.
<PAGE>
<PAGE> 44
COMMERCIAL FINANCE PLATFORM
(continued)
- ---------------------------
Management Conclusions
Management Believes That Meaningful Platform Expansion
Opportunities Exist
Small Business Commercial Finance Industry is Highly
Fragmented
Typical Company is an Owner Operator Non-Public Entity
Approximately 45 Targets Aggregating $1.2 Billion Have Been
Identified
Would Target Accretive Transactions With 15%+ ROE<PAGE>
<PAGE> 45
BANKING/DEPOSITORY PLATFORM
- ---------------------------
<PAGE>
<PAGE> 46
BANKING/DEPOSITORY PLATFORM
- ---------------------------
Bay View Bank
85 Year Old Institution (BVB) with Strong Name Recognition
Large SF Area Deposit Base
27 Branches; $1.6 Billion
Assets: $2.8 Billion
Entered Into Agreement to Acquire EurekaBank (100-Year Old
Institution) on May 8, 1997
Will Create 7th Largest Bay Area Deposit Franchise
56 Branches; $3.4 Billion
Combined Assets: $5.1 Billion
<PAGE>
<PAGE> 47
EUREKA ACQUISITION
Market Share Analysis
- ---------------------
<PAGE>
<PAGE> 48
EUREKA ACQUISITION
Market Share Analysis (continued)
- ---------------------------------
WELL POSITIONED IN KEY MARKETS
Rank- Institution(St)- Branches in-Total Deposits-Market Share
Bay Area(a) In Bay Area
1 BankAmerica Corporation(CA) 255 $27,359,201 23.51%
2 Wells Fargo & Company (CA) 263 25,307,789 21.74
3 Washington Mutual, Inc.(WA)(b) 112 9,510,106 8.17
4 UnionBanCal Corporation (CA) 39 6,454,742 5.55
5 MacAndrews & Forbes Holdings(NY) 74 5,191,053 4.46
6 HT Ahmanson & Company (CA) 55 4,000,000 3.44
* Pro Forma Bay View Capital Corp. 63 3,530,993 3.03
7 Citicorp (NY) 59 3,208,676 2.76
8 Bank of the West (CA) 75 3,202,502 2.75
9 Golden West Financial Corp. (CA) 38 2,669,097 2.29
10 Comerica, Inc. (MI) 21 1,903,920 1.64
11 EurekaBank (CA) 36 1,796,379 1.54
12 Bay View Capital Corporation(CA) 26 1,734,614 1.49
13 WestAmerica Bancorp (CA) 39 1,519,729 1.31
14 Glendale Federal Bank (CA) 30 1,518,327 1.30
15 Sumitomo Bank (Foreign) 16 1,472,473 1.27
Source: SNL Securities, L.P.; data as of 6-30-96 adjusted for
mergers and acquisitions.
(a) Bay Area consists of: Alameda, Contra Costa, Marin, Napa,
San Francisco,San Mateo, Santa Clara, Santa Cruz, Solano
and Sonoma Counties.
(b) Includes Great Western.
<PAGE> 49
EUREKA ACQUISITION
Market Share Analysis (continued)
- ----------------------------
BAY VIEW'S MARKET SHARE WILL INCREASE
<TABLE>
<CAPTION>
BVCC AFEH ProForma Comb. Co.
---------- ---------- -------------------
<S> <C> <C> <C>
County County County
Deposit Market Deposit Market Deposit Market
County Rank-$(000) Share Rank-$(000) Share Rank-$(000) Share
- ------ ----- ----- ----- ----- ----- ----- ----- ----- -----
Alameda 23 104,537 0.67 19 151,050 0.97 15 255,587 1.64
Contra
Costa 24 56,842 0.40 14 158,720 1.12 13 215,562 1.52
Marin 14 75,938 1.82 15 71,644 1.72 9 147,582 3.55
San
Francisco 11 554,686 1.43 15 347,190 0.90 5 901,876 2.33
San Mateo 3 703,698 6.88 4 505,205 4.94 3 1,208,903 11.82
Santa
Clara - - - 15 337,047 1.47 15 337,047 1.47
Solano 3 193,823 10.11 11 45,274 2.36 3 239,097 12.47
Sonoma 19 54,169 1.08 16 94,000 1.89 12 148,569 2.97
</TABLE>
Data as of June 30, 1996.
<PAGE> 50
EUREKA ACQUISITION
Market Share Analysis (continued)
- ---------------
BAY VIEW BANK/EUREKABANK COMBINED
Will Represent Largest Deposit Franchise Among
Financial Institutions Which Operate Exclusively in
Bay Area
5th Largest Deposit Franchise in San Francisco County
3rd Largest Deposit Franchise in San Mateo and Solano
Counties
- Only Bank of America and Wells Fargo Will Have Larger
Deposit Franchises
<PAGE> 51
The map appearing at this point indicates the location of
the branches of Bay View Bank, by county, as follows:
Alameda Pleasanton/Main St.
San Leandro
Contra Costa Walnut Creek
San Francisco Bayview
Civic Center
Columbus
1850 Irving St.
Lakeside
Market Street
2601 Mission St.
Palm-Geary
San Mateo Belmont
Burlingame
Foster City
Menlo Park
Millibrae
San Mateo
Serramonte
South San Francisco
Westlake
Santa Clara San Jose/W. Santa Clara
Solano Benicia
Fairfield
Vallejo
Sonoma Rohnert Park
Sonoma
<PAGE>
<PAGE> 52
The map appearing at this point indicates the locations of
the branches of EurekaBank, by county, as follows:
Alameda Fremont
Pleasanton/Stoneridge Mall Rd.
San Leandro
Contra Costa Concord
Danville
Lafayette
Martinez
Marin Novato
San Rafeal
San Francisco Castro St.
1200 Irving St.
4610 Mission St.
Montgomery St.
Stockton St.
San Mateo Belmont
Half Moon Bay
Menlo Park
Pacifica
San Bruno
San Carlos
San Mateo
South San Francisco
Santa Clara Campbell
Cupertino
Los Altos
Los Gatos
Palo Alto
San Jose/Almaden
San Jose/Lincoln
San Jose/Saratoga
Sunnyvale
Santa Cruz Aptos
Santa Cruz
Solano Vacaville
Sonoma Courthouse Square
Magowan
<PAGE>
<PAGE> 53
The map appearing at this point indicates the locations, by
county, of the branches of Bay View Bank following the merger
with EurekaBank, as follows:
Alameda Fremont
Pleasanton/Main St.
Pleasanton/Stoneridge Mall Rd.
San Leandro
Contra Costa Concord
Danville
Lafayette
Martinez
Walnut Creek
Marin Novato
San Anselmo
San Rafeal
San Francisco Bayview
Castro St.
Civic Center
Columbus
1200 Irving St.
1850 Irving St.
Lakeside
Market St.
2601 Mission St.
4610 Mission St.
Montgomery St.
Palm-Geary
San Mateo Belmont
Burlingame
Foster City
Half Moon Bay
Menlo Park
Millibrae
Pacifica
San Carlos
San Mateo
Serramonte
South San Francisco
Westlake
Santa Clara Campbell
Cupertino
Los Altos
Los Gatos
Palo Alto
San Jose/W. Santa Clara
San Jose/Almaden
San Jose/Lincoln
San Jose/Saratoga
Sunnyvale
Santa Cruz Aptos
Santa Cruz
Solano Benicia
Fairfield
Vacaville
Vallejo
Sonoma Courthouse Square
Magowan
Rohnert Park
Sonoma<PAGE>
<PAGE> 54
EUREKA ACQUISITION
Market Share Analysis (continued)
- ------------------
EUREKABANK VERSUS BAY VIEW BANK
- Branch Locations
- EurekaBank = 36
- Bay View Bank = 27
- Combined = 56
- Consolidation of Only 7 Branches
- Average Deposits Per Branch = $60 Million
-Deposits
- EurekaBank = $1.85 Billion
- Bay View Bank - $1.58 Billion
- Combined - $3.40 Billion
- Combined Transaction Accounts = $1.1 Billion or 33%
<PAGE> 55
EUREKA ACQUISITION
Transaction Summary
- -------------------
<PAGE> 56
EUREKA ACQUISITION
Transaction Summary
- -------------------
Aggregate Offer Value: $300 Million
Estimated Book Value at Purchase Date: $188 Million
$300 Million Price/Book: 160%
$235 Million Adjusted Price/Book: 125%
$112 Deposit Premium: 6.1%
$60 Million Adjusted Deposit Premium: 3.2%
1998 EPS
- Accounting EPS: $1.74 (-$0.19 or -10%)
- Tangible Cash EPS: $2.68 (+$0.60 or +29%)
1999 EPS
- Accounting EPS: $2.22 (+$0.10 or +5%)
- Tangible Cash EPS: $3.16 (+$0.89 or +39%)
Expected Purchase Date
- December 31, 1997 or January 1, 1998
- Purchase Accounting Applied
<PAGE> 57
EUREKA ACQUISITION
Transaction Structure
- -------------------
<PAGE> 58
EUREKA ACQUISITION
Transaction Structure
- ------------------
$300 Million Purchase Price Represents
- 1.6 Times Book Value at Purchase Date
- $65 Million Purchase of Embedded Federal and State Tax
Loss Carryforwards
- $52 Million Premium above $13 Million Recorded by
Eureka
- $235 Million Adjusted Acquisition Price Attributable
to Assets Purchased and Liabilities Assumed
- 1.25 Times Book Value
<PAGE> 59
EUREKA ACQUISITION
Transaction Structure (continued)
- -------------------
Acquisition Will Be Accounted For as a Purchase Utilizing
Purchase Accounting
Goodwill is Preliminarily Estimated at $112 Million and is
Currently Anticipated to be Amortized Utilizing a Conservative
15-Year Life
- 25 Year Often Used in Similar Transactions
AFEH Shareholders Will Represent 40%+ of BVCC Shareholders and
Will Receive 2 BVCC Board Seats
<PAGE> 60
$112 Million of Goodwill Approximately 6.1% of Deposits
($1.85 Billion)
- Excluding Portion of Premium Attributable to Tax Loss
Carryforwards Acquired Represents 3.2% of Deposits
Planned Transaction Closing on or About 12-31-97
- Subject to Normal Regulatory and BVCC Shareholder
Approvals
Mutual "Lock-Up" Options
- Warrants to Acquire 19.9% Mutually Issued
<PAGE> 61
EUREKA ACQUISITION
Transaction Structure (continued)
- ------------------
$210 Million Stock Component Will be Determined Based on
20-Day Average Stock Price Prior to Closing
- If BVCC's 20-Day Average Stock Price is Above $26 or
Below $21, the Exchange Ratio Will be Fixed Based on
$26 or $21 Share Price (As Applicable)
- AFEH Has Right to Terminate if Bay View's Stock Price
Falls Below $21.00
- Bay View Has Right to Adjust Purchase Price for
AFEH Shortfall if Stock Price Falls Below $21.00
<PAGE> 62
EUREKA ACQUISITION
Transaction Structure (continued)
- ------------------
For Every $0.50 That BVCC Stock Exceeds $26.00
- Goodwill Will Increase By $4 Million
- 1998/1999 Net Income Will Reduced by $270,000
- 1998/1999 EPS Will Be Reduced by $0.01 Per Share
<PAGE> 63
EUREKA ACQUISITION
Transaction Structure (continued)
- --------------------
Pricing Attractive Relative to Recently Announced Transactions
- Bay View Will Pay 160% of Book Value at Purchase Date
For Eureka, Which is Comparable to the Median Multiple
Of 162% Paid by Acquirers in Thrift Acquisitions
Between 1996 and the Present
- Bay View Will Pay a 6.1% Premium to Deposits ($1.85
Billion) for Eureka, Which Compares Favorably With a
Median Premium of 7.52% Paid by Acquirers in Thrift
Acquisitions Between 1996 and the Present
<PAGE> 64
EUREKA ACQUISITION
Transaction Structure (continued)
- ------------------
Pricing Summary of Recently Announced Transactions
No. BUYER ST SELLER ST
- ---- ------------------ ----- ----------------------- -----
1. TCF Financial Corp MN Standard Financial IL
2. Marshall & Ilsley WI Security Capital Corp WI
3. CCB Financial Corp NC American Federal Bn SC
4. Sovereign Bancorp PA Bankers Corp NJ
5. Temple-Inland Inc TX California Financial CA
6. Webster Fin'l Corp CT DB Bancorp, Inc. CT
7. UST Corp MA Walden Bancorp, Inc. MA
8. North Fork Bancorp NY North Side SB NY
9. First Union Corp NC Center Fin'l Corp CT
10. First Union Corp NC Home Financial Corp FL
11. Nations Bank Corp NC TAC Bancshares FL
12. Union Planters Corp TN Leader Financial Corp TN
13. Norwest Corporation MN Primerit Bank FSB NV
14. Standard Federal Bank MI Bell Bancorp IL
15. MAF Bancorp IL N.S. Bancorp IL
16. First Union Corp NC Society First FSB FL
17. SouthTrust Corp AL Bankers First Corp GA
18. Bank of Boston MA Boston Bancorp MA
19. Republic New York NY Brooklyn Bancorp NY
20. MacAndrews & Forbes NY SFFed Corp CA
21. Norwest Corporation MN AMFED Financial NV
22. Nations Bank Corp NC CSF Holdings FL
23. Crestar Financial VA Loyola Capital Corp MD
24. First Union Corp NC Columbia First FSB VA
25. First Union Corp NC Coral Gables Fedcorp FL
26. First Union Corp NC American Savings of FL FL
27. Bay View Capital Corp CA America First Eureka CA
(Amounts on following page)
<PAGE>
<PAGE> 65
EUREKA ACQUISITION
Transaction Structure (continued)
- --------------------
Pricing Summary of Recently Announced Transactions (continued)
Ann'd Deal Ann'd Deal Ann'd Deal Ann'd TgbkPrem
No. Value ($M) Pr Tg Bk (%) 4-Qtr EPS(X) CoreDeps(%)
- ----- ----------- ------------ ------------ -----------
1. 423.30 151.06 33.33 9.97
2. 915.20 161.07 25.34 15.72
3. 341.60 330.71 24.40 26.61
4. 322.70 171.49 15.27 8.90
5. 147.00 164.20 30.30 7.58
6. 133.10 159.67 15.25 5.46
7. 165.90 196.16 16.16 11.38
8. 216.30 170.07 11.76 7.98
9. 384.50 176.18 14.96 7.17
10. 341.20 106.00 15.05 3.58
11. 279.80 188.07 15.03 8.35
12. 504.70 192.54 13.05 18.46
13. 190.70 163.64 26.90 7.32
14. 362.80 114.68 27.57 4.60
15. 275.70 113.22 16.40 6.05
16. 188.00 145.84 29.85 5.79
17. 145.80 150.65 11.30 7.92
18. 218.50 118.98 11.55 3.22
19. 529.60 140.68 14.46 4.78
20. 266.10 133.00 N/A 3.34
21. 196.60 168.87 17.98 7.00
22. 516.00 183.69 12.40 7.46
23. 279.30 147.74 17.44 7.93
24. 232.80 176.21 20.62 8.05
25. 513.80 139.43 14.37 9.81
26. 253.00 163.30 10.88 5.05
- ---- -------- -------- -------- -----
Median 277.50 162.19 15.27 7.52
- -----------------------------------------------------------------
27. 300.00 160.00 11.49 6.10
- -----------------------------------------------------------------
<PAGE>
<PAGE> 66
EUREKA ACQUISITION
Strategic Review
- ------------------
<PAGE> 67
EUREKA ACQUISITION
Strategic Review
- -----------------
Consistent With BVCC Mission Statement to Create Diversified
Financial Services Company and Enhance Shareholder Value
Consistent With Bay View Bank Mission Statement to Become Best
Northern California Community Bank
<PAGE> 68
EUREKA ACQUISITION
Strategic Review (continued)
- -----------------
Eureka Acquisition Will
- Create Largest Deposit Franchise Among Financial
Institutions Which Operate Exclusively in Bay Area
- Dramatically Enhances Retail Deposit Franchise Value
- Expand Low Cost Funding Platform for BVCC's Rapidly
Expanding Consumer and Commercial Finance Platforms
-Opportunity to Replace $700 Million Annual Low Yield
Asset Run-Off With Higher Yield Assets
- Accelerate Transition of Bay View Bank to Community Bank
Status
- Enable Bay View Bank to Rapidly Reduce Wholesale
Borrowings
<PAGE> 69
EUREKA ACQUISITION
Strategic Review (continued)
- -----------------
Transaction Will Generate significant Free Cash Flow
Prospectively
- Estimated at $250 Million for 1998-2001
- This Cash Flow Creation Will Support Future Asset Growth
Of $5 Billion
- Significant Portion of This Cash Flow Will Likely be
Returned to BVCC for Redeployment Through
- Accretive Acquisitions
- Share Repurchases
<PAGE> 70
EUREKA ACQUISITION
Critical Financial Assumptions
- --------------------
<PAGE> 71
EUREKA ACQUISITION
Critical Financial Assumptions
- ------------------
Critical Assumptions Include
- $21 Million of Expense Reductions
- Realization of $65 Million of Tax Loss Carryforwards
- Stable Interest Rate Environment
- Asset Quality Maintained
- Conservative Modeling Assumptions
- No Asset Growth; Slight Decline
- Asset Originations Assumed at 7.0% in 1998; 7.75% in
1999
- Day One CD Run-Off = 15%; Run-Off Replaced By Higher
Cost Borrowings
- Assume Only 50% of Cost Savings Reduced in 1998;
100% by 1999
<PAGE> 72
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- -------------------
Cost Savings Assumptions Consistent With Prior In-Market
Transactions
Transaction Assumed Cost Savings (%)
- ------------ -----------------------
Bank Bost/BayBanks 39%
Chemical/Chase 40%
Fleet/Shawmut 43%
Mercantile/Roosevelt 37%
NationsBank/BankSouth 60%
Wells/First Interstate 46%
Average 44%
Bay View/Eureka 46%
<PAGE> 73
EUREKA ACQUISITIONS
Critical Financial Assumptions (continued)
- --------------------
$21 Million of Conservative Cost Savings Achievable by June
30, 1998 Due to
- Corporate Headquarters/Operational Functions Located
Within Close Proximity
- Corporate Headquarters Located 2 Blocks Apart
- Branch Consolidations Limited to 7 Branches
- Believe MIS Conversion Can be Completed by Mid-1998
- Critical Driver in Achieving Cost Savings
- BVCC and EurekaBank Both Use Third Party for
Processing
- No "In-House" Processing
<PAGE> 74
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- ------------------
BVCC Has Demonstrated Success and Commitment to Cost Reduction
- BVCC CEO, BVB COO, and BVB EVP/Sales Manager Has
Extensive Consolidation Expertise
- BVB G&A/Assets Now 1.35%; Down From 1.60% in Early 1995
- Consumer Finance Platform G&A Now Nearly 3.00%; Down
From 4.75% at Announcement Date; 4.25% at June 1996
Acquisition Date
<PAGE> 75
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- -------------------
Expect Merger of 7 EurekaBank Branches Into Bay View Bank
("BVB") Branches:
- EurekaBank Bay View Bank
Belmont Branch To Belmont Branch
- EurekaBank Bay View Bank
Menlo Park Branch To Menlo Park Branch
- EurekaBank Bay View Bank
SF (Stockton St.) To SF (Columbus St.)
- EurekaBank Bay View Bank
San Bruno Branch To Millbrae Branch
- EurekaBank Bay View Bank
San Leandro Branch To San Leandro Branch
- EurekaBank Bay View Bank
San Mateo Branch To San Mateo Branch
- EurekaBank Bay View Bank
So. San Francisco Branch To So. San Francisco Branch
<PAGE> 76
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- --------------------
Summary of Cost Savings ($ Millions)
- Branch Consolidation $2.8
-All Branch Consolidation Decisions Finalized and
Made Public
- Bay View Bank and EurekaBank Annual Branch Attrition
Rates Approximately 35%
- Eliminate Eureka Executive Management 1.3
- Eureka Has High Senior Management Salaries
- Eliminate Administrative Office Space 1.9
- Eliminate Holding Company Partnership Costs 1.7
- Eliminate Duplicative Administrative Functions 4.0
- Eliminate Operational Functions 1.1
- Eliminate Duplicative Loan Origination & Servicing
Functions 6.8
- Eliminate Duplicative Marketing Costs 1.4
------
- Aggregate Cost Savings Identified $21.0
<PAGE> 77
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- --------------------
Aggregate Cost Savings Identified = $21 Million (Annualized)
Represents Roughly 46% of Anticipated Eureka's 1997 G&A and
20% of Combined Noninterest Expense
We Expect These Cost Savings Can be Achieved by June 30, 1998
- Expect to Realize Savings By July 1, 1998
- 100% of Savings Will Be Realized in 1999
Further Cost Savings May be Achievable
<PAGE> 78
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- -------------------
$65 Million Tax Asset Represents Future Utilization of $187
Million of Tax Loss Carryforwards Which Expire through 2007
Full Utilization Will Require BVCC Annual Taxable Income of $20
Million
- Represents 25% of Projected 1998 Pre-Tax Income
<PAGE> 79
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- ------------------
TAX LOSS CARRYFORWARDS
Beginning Ending
Year Balance Amortization Balance
- ----- ------------ ------------ ----------
1997 - - $ 65,661
1998 $ 65,661 $ (8,563) 57,097
1999 57,097 (8,563) 48,534
2000 48,534 (8,563) 39,971
2001 39,971 (8,563) 31,407
2002 31,407 (8,563) 22,844
2003 22,844 (5,775) 17,069
2004 17,069 (5,775) 11,294
2005 11,294 (5,775) 5,519
2006 5,519 (5,519) 0
2007 0 0 0
<PAGE> 80
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- -----------------
One-Time BVCC Restructuring Charges of $5.0 Million Pre-Tax
($2.9 Million After Tax or $0.44 Per Share)
- Debt/Securitization Restructuring $2.5 Million
- Severance $1.0 Million
- Facilities/Relocation $1.0 Million
- Other $0.5 Million
--------------
- Total $5.0 Million
<PAGE> 81
EUREKA ACQUISITION
Critical Financial Assumptions (continued)
- -------------------
Expect to Discontinue Auto Securitization Activities
- Reduces 1997 Net Income by Approximately $2.9 Million
($0.22 Per Share)
-Approximately $1.0 Million - $1.3 Million After Tax in
Second Quarter ($.08 - $.10 Per Share)
- EPS Impact Dependent on Exact Execution to be
Finalized by June 30, 1997
- Enhances 1998 and Future EPS Performance
Expect to Pursue $100 - $150 Million Subordinated Debt Issuance
at Either BVCC and/or BVB
<PAGE> 82
EUREKA ACQUISITION
Key Considerations
- -------------------
<PAGE> 83
EUREKA ACQUISITIONS
Key Considerations
- --------------------
Cost Savings Are Not Achieved
- Utilized Independent Third Parties to Verify Achievability
Of Cost Savings (Plan in Existence)
- Expect to Utilize Third Party Assistance to Implement
Tax Losses Are Not Utilized
- Projected Taxable Income Sufficient to Absorb Loss
Carryforward Even With 75% Decline in Taxable Income
<PAGE> 84
EUREKA ACQUISITION
Key Considerations (continued)
- -------------------
Deposits Are Not Retained
- BVB Familiar With Markets
- Minimal Branch Disruption Expected
- Only 7 Branch Closures Identified
- Deposit Franchises Very Similar
Asset Quality Deteriorates
- Eureka Non-Accruals/TDRs = .36%
- BVB Non-Accruals/TDRs = .63%
<PAGE> 85
EUREKA ACQUISITION
Key Consideration (continued)
- -------------------
Interest Rate Risk
- Both BVB and Eureka Have Hedges In Place to Significantly
Mitigate Interest Rate Risk Exposure
- Consolidated COFI Exposure Will Decline
- Eureka Exposure = 13% ($300 Million)
- BVB Exposure = 43% ($1.3 Billion)
- Combined Exposure = 30% ($1.6 Billion)
- $500 Million of Eureka's Assets are Rapidly Indexing
LIBOR Based Mortgages
- Reduction of Wholesale Borrowings and Expansion of Core
Deposits Will Further Mitigate Interest Rate Risk
<PAGE> 86
EUREKA ACQUISITION
Summary
- ------------------
<PAGE> 87
EUREKA ACQUISITION
Summary
- ------------------
Eureka Acquisition Enables Bay View to Create the Premier
Independent Banking/Deposit Franchise in San Francisco Bay
Area
Eureka Acquisition Expands Bay View's Low Cost Funding Base for
Consumer/Commercial Finance Platforms
$700 Million Low Yield Annual Asset Run-Off Creates Significant
Opportunity to Replace These Assets With High Yield Assets
<PAGE> 88
EUREKA ACQUISITION
Summary (continued)
- ------------------
Eureka Acquisition Accelerates Transition of Bay View Bank to
Community Bank Status
- Dramatically Enhances Core Deposits Franchise Value
Represents Low Risk Transaction
<PAGE> 89
1997/1999 OUTLOOK
- -------------------
<PAGE> 90
1997 OUTLOOK
- -------------
Comfortable with Consensus EPS Estimate Which Approximate:
- Accounting (Pre-Split): $2.62 ($3.50-$.44-$.44)
- Accounting (Post-Split): $1.31 ($1.75-$.22-$.22)
- Tangible Cash (Pre-Split): $3.12 ($4.00-$.44-$.44)
- Tangible Cash (Post-Split): $1.56 ($2.00-$.22-$.22)
Comfortable With Second Quarter Consensus/Accounting EPS
Estimates of $.33* ($.41-$.08)**
* Adjusted for June 3, 1997 2-for-1 Stock Split
** Adjusted for estimated impact of discontinuation of auto
securitization
<PAGE> 91
FINANCIAL OUTLOOK
- -------------------
Forecasted Eureka Acquisition Benefit - 1998
- Management Estimates That While the 1998 Accounting EPS
Benefit from the Eureka Acquisition Will Be Dilutive,
the Cash Accounting EPS is Accretive
- Book EPS Dilution Estimated at $.19 Per Share*
- Tangible Cash EPS Enhancement Estimated at $.60 Per
Share*
- Goodwill Amortization Estimated at $7.5 Million
= $0.37 Per Share*
- Charge-In-Lieu of Income Taxes Estimated at
$8.5 Million = $0.42 Per Share*
* Adjusted for June 3, 1997 2-for-1 Stock Split
<PAGE> 92
FINANCIAL OUTLOOK (continued)
- -------------------
Forecasted Eureka Acquisition Benefit - 1999
- Management Estimates That While The 1999 Accounting EPS
Benefit From the Eureka Acquisition Will Be Accretive,
Cash Accounting EPS is Significantly Accretive
- Book EPS Enhancement Estimated at $.10 Per Share*
- Tangible Cash EPS Enhancement Estimated at $.89 Per
Share*
- Goodwill Amortization Estimated at $7.5 Million
= $0.37 Per Share*
- Charge-in-Lieu of Income Taxes Estimated at
$8.5 Million = $0.42 Per Share*
* Adjusted for June 3, 1997 2-or-1 Stock Split
<PAGE> 93
FINANCIAL PROJECTIONS
- ----------------------
Projected Consolidated Balance Sheet
BV Post Acquis. Period End Period End
Pre-Acquis. Jan.1,1998 Dec.31,1998 Dec.31,1999
----------- ------------ ------------ -----------
Cash and
Investments $ 647,830 $ 1,414,726 $ 1,142,679 $ 1,032,085
Net Loans 2,302,421 3,692,200 3,730,007 3,769,813
Intangibles 21,143 132,345 121,463 111,681
Other Assets 56,778 148,630 237,789 231,399
----------- ----------- ----------- ---------
Total Assets $ 3,028,172 $ 5,387,901 $ 5,231,938 $ 5,143,978
Deposits $ 1,583,017 $ 3,240,051 $ 3,428,140 $ 3,479,853
Subordinated
Debt - 90,000 90,000 90,000
Other Borrowings
and Liabilities 1,252,203 1,674,898 1,319,491 1,183,225
---------- ------------ ----------- ---------
Total
Liabilities $ 2,835,220 $ 5,004,949 $ 4,837,631 $ 4,747,078
Total Equity 192,952 382,952 394,307 396,900
---------- ------------ ----------- ---------
Liabilities and
Shareholders'
Equity $ 3,028,172 $ 5,387,901 $ 5,231,938 $ 5,143,978
---------- ------------ ----------- ---------
---------- ------------ ----------- ---------
Book Value
Per Share* $ 14.50 $ 18.80 $ 19.36 $ 20.54
Tangible Book
Value Per Share* 12.91 12.30 13.40 14.81
Adjusted for June 3, 1997 2-for-1 Stock Split
<PAGE> 94
FINANCIAL PROJECTIONS (continued)
- ------------------------
Income Statement Forecast - 1998
PRELIMINARY ESTIMATED IMPACT OF EUREKA ACQUISITION
Tangible
Accounting* Cash*
----------- ----------
Before Eureka/$25 Million Stock
Buy-Back
- -------------------------------
Forecasted EPS $ 1.93** $ 1.93**
Goodwill Amortization 0.15
----------- ----------
1.93 2.08
Eureka Acquisition/$25 Million
Stock Buy-Back
- -------------------------------
EPS Impact $ (0.19) $ (0.19)
Cash Basis Adjustments
Goodwill Amortization 0.37
Utilization for tax loss
carryforwards 0.42
------------ ----------
$ (0.19) $ 0.60
------------ ----------
Forecasted EPS After Eureka/
$25 Million Stock Buy-Back $ 1.74 $ 2.68
* Adjusted for June 3, 1997 2-for-1 Stock Split
** Assumes 10% earnings growth from 1997 consensus.
<PAGE> 95
FINANCIAL PROJECTIONS (continued)
- ----------------------
Income Statement Forecast - 1999
PRELIMINARY ESTIMATED IMPACT OF EUREKA ACQUISITION
Tangible
Accounting* Cash*
--------------- ------------
Before Eureka/$25 Million Stock
Buy-Back
- -------------------------------
Forecasted EPS $ 2.12** $ 2.12**
Goodwill Amortization 0.15
--------------- -----------
2.12 2.27
Eureka Acquisition/$25 Million
Stock Buy-Back
- --------------------------------
EPS Impact $ 0,10 $ 0.10
Cash Basis Adjustments
Goodwill Amortization .37
Utilization for tax loss
carryforwards .42
--------------- ----------
$ 0.10 $ 0.89
--------------- ----------
Forecasted EPS After Eureka/
$25 Million Stock Buy-Back $ 2.22 $ 3.16
* Adjusted for June 3, 1997 2-for-1 Stock Split
** Assumes 10% earnings growth from 1997 consensus
<PAGE> 96
CONCLUSION
- --------------
<PAGE> 97
CONCLUSION
- --------------
Bay View Appreciates Your Support and Interest.
Management Remains Totally Committed to the Enhancement of the
Value of Our Shareholder's Investment in Bay View Capital
Corporation.
