Bay View
Capital Corporation
News Release
------------
NYSE: BVC
Web Site: www.bayviewcapital.com
Contact: Mark E. Lefanowicz
(650) 294-7730
Edward H. Sondker
(650) 312-7373
FOR IMMEDIATE RELEASE
September 29, 2000
BAY VIEW CAPITAL ANNOUNCES DEFERRAL OF DISTRIBUTIONS ON CAPITAL
SECURITIES
San Mateo, California - Bay View Capital Corporation (NYSE: BVC) today
announced that it has entered into the agreement that it previously announced it
was negotiating with the Board of Governors of the Federal Reserve System. In
addition to requiring prior approval to pay common stock dividends, the final
agreement will also require the Company to obtain prior approval to disburse its
dividends associated with its 9.76% Capital Securities (NYSE: BVS).
Bay View initially believed that the agreement would not affect the
dividend on its Capital Securities as long as it met certain published capital,
liquidity, and other requirements. The Company has since been advised that the
prior approval of the Board of Governors of the Federal Reserve and the Federal
Reserve Bank of San Francisco to disburse these dividends will be required
despite meeting those requirements.
The Company has requested approval to disburse the upcoming September 30,
2000 quarterly dividend but does not anticipate receiving the Federal Reserve
Board's approval. In such case, pursuant to the terms of the Capital Securities,
the Company will defer distributions on the debentures. During this deferral
period, distributions to which holders are entitled will continue to accrue at
an annual rate of 9.76% of the liquidation amount of $25 per Capital Security,
plus accumulated additional distributions at the same rate, compounded
quarterly, on any unpaid distributions (to the extent permitted by law). The
Company fully intends to continue to seek permission to distribute the dividend
at the earliest opportunity.
Bay View Capital Corporation is a diversified financial services holding
company with over $6 billion in assets. Headquartered in San Mateo, California,
it is the parent company of Bay View Bank, N.A. and its subsidiaries, Bay View
Acceptance Corporation, Bay View Commercial Finance Group, and Bay View
Franchise Mortgage Acceptance Company.
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Forward-Looking Statements
This press release contains forward-looking statements which describe the
Company's future plans, strategies and expectations. All forward-looking
statements are based on assumptions and involve risks and uncertainties, many of
which are beyond the Company's control and which may cause actual results,
performance or achievements to differ materially from anticipated results,
performance or achievements. Factors that might affect forward-looking
statements include, among other things:
o the demand for the Company's products;
o actions taken by the Company's competitors;
o tax rate changes, new tax laws and revised tax law interpretations;
o adverse changes occurring in the securities markets;
o inflation and changes in prevailing interest rates that reduce margins or
the fair value of the financial instruments held;
o economic or business conditions, either nationally or in the Company's
market areas, that are worse than expected;
o legislative or regulatory changes that adversely affect the Company's
business;
o the inability to sell or securitize assets;
o the timing, impact and other uncertainties of asset sales or acquisitions
and the Company's success or failure in the integration of their
operations;
o the ability to enter new geographic and product markets successfully and
capitalize on growth opportunities;
o technological changes that are more difficult or expensive than expected;
o increases in delinquencies and defaults by borrowers and other loan
delinquencies;
o increases in the provision for losses on loans and leases;
o the inability to sustain or improve the performance of subsidiaries;
o the inability to achieve the financial goals in the Company's strategic
plans, including any financial goals related to both contemplated and
consummated asset sales or acquisitions;
o the outcome of lawsuits or regulatory disputes;
o credit and other risks of lending, leasing and investment activities; and
o the inability to use net operating loss carryforwards currently held by the
Company.
As a result of the above, the Company cannot assure that future results of
operations or financial condition or any other matters will be consistent with
those presented in any forward-looking statements. Accordingly, the Company
cautions you not to rely on these forward-looking statements. The Company does
not undertake, and specifically disclaims any obligation, to update these
forward-looking statements, which speak only as of the date made.
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