Exhibit 99.1
December 26, 2000
FOR IMMEDIATE RELEASE
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MONTEREY BAY BANCORP, INC. ANNOUNCES:
REPAYMENT IN FULL OF A $4,825,000 NON-ACCRUAL BUSINESS TERM LOAN;
$2.1 MILLION INCREASE IN INVESTMENT IN MONTEREY BAY BANK
Common Stock Symbol: MBBC
NASDAQ National Market
Watsonville, CA. December 26, 2000. Monterey Bay Bancorp, Inc.
("Company") today reported the repayment in full of a $4,825,000 business term
loan primarily secured by the common stock of a depository institution
conducting business outside the State of California. This loan was originated by
Monterey Bay Bancorp, Inc. and has been maintained on non-accrual status since
the fourth quarter of 1999. At September 30, 2000, the Company had reserved
$200,000 for this loan. In addition to all principal owed, the Company also
received all related interest and the reimbursement of $16,000 for legal fees.
Commenting on the repayment, C. Edward Holden, Chief Executive Officer,
stated "The repayment of this loan will positively impact the Company's
financial profile at the end of our fiscal year, December 31, 2000, particularly
in regards to classified asset levels. The repayment also provides the Monterey
Bay Bancorp, Inc. holding company with additional liquidity. This integrates
effectively with the recent decision by the Board of Directors to invest an
additional $2.1 million from the holding company into the Monterey Bay Bank
("Bank") subsidiary to support the Bank's business strategy for 2001."
Mr. Holden then continued "The repayment of the business term loan
provides the holding company with both flexibility and additional resources to
further the Bank's ongoing evolution into a community based financial services
firm. The enhanced flexibility will permit the Company to consider various
opportunities to build shareholder value."
The Company's common stock is listed on the NASDAQ National Market
under the symbol "MBBC". The Company and the Bank are headquartered in
Watsonville, California. The Bank operates through its administrative offices in
Watsonville and eight full service branches located in the Greater Monterey Bay
Area of Central California.
This news release contains certain forward-looking statements that are
subject to various factors that could cause actual results to differ materially
from such statements. Such factors include, but are not limited to, the economic
and real estate market conditions in the Company's market areas, the possibility
that the Company will not be successful in achieving its strategic and tactical
objectives, changes in liquidity demands upon the Company and its subsidiary,
and other factors discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time. The Company does not
undertake, and specifically disclaims any obligation, to update any
forward-looking statements to reflect occurrences or unanticipated events or
circumstances after the date of such statements.
For further information contact:
C. Edward Holden Mark R. Andino
Chief Executive Officer or Chief Financial Officer
(831) 768 - 4840 (831) 768 - 4806
[email protected]
Fax: (831) 722 - 6794
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