-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Hpvgo9ZGjyY3GeKgbGAz3rJHTqN7dJ1wJv7pMG+sNWNj47huLmWxbA/iDkYcp+AA yRZWbtRrymxaOgOP3u7qrg== 0000929624-98-001268.txt : 19980720 0000929624-98-001268.hdr.sgml : 19980720 ACCESSION NUMBER: 0000929624-98-001268 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980708 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980717 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREATER BAY BANCORP CENTRAL INDEX KEY: 0000775473 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 942952485 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-25034 FILM NUMBER: 98668039 BUSINESS ADDRESS: STREET 1: 2860 WEST BAYSHORE ROAD CITY: PALO ALTO STATE: CA ZIP: 94303 BUSINESS PHONE: 4153751555 MAIL ADDRESS: STREET 1: 2860 BAYSHORE STREET 2: 420 COWPER ST CITY: PALO ALTO STATE: CA ZIP: 943011504 FORMER COMPANY: FORMER CONFORMED NAME: MID PENINSULA BANCORP DATE OF NAME CHANGE: 19941031 FORMER COMPANY: FORMER CONFORMED NAME: SAN MATEO COUNTY BANCORP DATE OF NAME CHANGE: 19920703 8-K 1 FORM 8-K ================================================================================ 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): JULY 8, 1998 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 ================================================================================ 1 ITEM 5. OTHER EVENTS. See attached Press Release dated July 8, 1998. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. Exhibits -------- 99.1 Press Release dated July 8, 1998. 2 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. GREATER BAY BANCORP (Registrant) Date: July 16, 1998 By /s/ Steven C. Smith _____________________________ Steven C. Smith Executive Vice President, Chief Operating Officer and Chief Financial Officer 3 EXHIBIT INDEX ------------- 99.1 Press Release dated July 8, 1998. 4 EX-99.1 2 PRESS RELEASE DATED JULY 8, 1998 EXHIBIT 99.1 Press Release dated July 8, 1998 [GREATER BAY BANCORP LETTERHEAD APPEARS HERE] For Immediate Release For Information Contact - --------------------- ----------------------- July 8, 1998 David L. Kalkbrenner, President & CEO (650) 614-5767 Steven C. Smith, EVP, COO & CFO (650) 813-8222 GREATER BAY BANCORP REPORTS RECORD 1998 SECOND QUARTER AND YEAR TO DATE EARNINGS PALO ALTO, CA - Greater Bay Bancorp (Nasdaq: "GBBK"), the $1.5 billion in assets holding company for Cupertino National Bank, Golden Gate Bank, Mid- Peninsula Bank, Peninsula Bank of Commerce, Venture Banking Group and Greater Bay Trust Company, announced net earnings of $6.6 million or $0.67 per diluted share for the six month period ended June 30, 1998. Net earnings included approximately $1.3 million, net of tax, in merger and related non-recurring costs. Excluding the merger and related non-recurring costs, net earnings for the six month period ended June 30, 1998 would have been $7.9 million or $0.80 per diluted share, an increase in net earnings of 36.6% over the same period in 1997. For the second quarter of 1998 Greater Bay Bancorp's net earnings were $2.9 million or $0.29 per diluted share. Excluding the merger and related non- recurring costs, second quarter 1998 net earnings would have been $4.2 million or $0.43 per share, a 14.4% increase over first quarter 1998 net earnings and a 40.7% increase over the second quarter 1997 earnings of $3.0 million or $0.32 per share. Greater Bay Bancorp's total assets reached $1.5 billion at June 30, 1998, an increase of 45.0% or $456.6 million from June 30, 1997, while total loans grew to $804.6 million, an increase of $153.7 million or 23.6% compared to total loans at June 30, 1997. Total deposits increased $376.1 million to $1.3 billion at quarter end, a 41.4% increase since June 30, 1997. Total deposits included approximately $70.0 million in temporary funds from clients, which were received on June 30, 1998 and invested in short-term investment securities. The majority of these funds were withdrawn in early July 1998. Mr. David L. Kalkbrenner, President and Chief Executive Officer, stated, "We continue to report record operating results in our core banking business, while also positioning the company to be the preeminent Super Community Banking franchise serving the dynamic market from San Francisco through the Peninsula to San Jose." Mr. Kalkbrenner continued, "During the quarter we added Golden Gate Bank in San Francisco to the Greater Bay Family of Banks, while also completing a two-for-one stock split which we believe will enhance liquidity for our shareholders." GREATER BAY BANCORP REPORTS RECORD 1998 SECOND QUARTER AND YEAR TO DATE EARNINGS JULY 8, 1998 PAGE 2 The second quarter 1998 operating results include approximately $25,000, excluding internal staff time, related to the correction of the year 2000 "millenium bug" which impacts all companies. The Company anticipates spending $300,000 to $500,000 in 1998 and 1999 to ensure that its systems are ready for processing information in the year 2000. For the six-month period ended June 30, 1998, Greater Bay Bancorp's return on average equity and average assets, excluding merger and related non-recurring costs were 20.29% and 1.24% compared to 16.72% and 1.19% for the six month period ended June 30, 1997. During the second quarter of 1998, Greater Bay Bancorp's return on average equity and average assets, excluding the merger and related non-recurring costs, were 21.62% and 1.25% compared to 16.63% and 1.18% for the same period in 1997. Greater Bay Bancorp's ratio of non-performing assets to total assets was 0.35% at June 30, 1998 compared to 0.89% at June 30, 1997. The allowance for loan losses represented 2.19% of total loans and 345.19% of total non performing assets at June 30, 1998, compared to 2.09% and 150.32% at June 30, 1997. The Company's Trust division, Greater Bay Trust Company, continues to reflect strong growth, increasing the level of fiduciary assets under management by 30.76% to a total of $636.4 million at June 30, 1998 compared to $486.7 million one year earlier. Trust fee income increased by 51.1% from $481,000 for the second quarter of 1997 to $727,000 for the second quarter of 1998. Greater Bay Bancorp's capital ratios continue to be above the well- capitalized guidelines established by the Bank Regulatory Agencies. Greater Bay Bancorp and its banking subsidiaries, Cupertino National Bank, Golden Gate Bank, Mid-Peninsula Bank and Peninsula Bank of Commerce, along with the Venture Banking Group and the Greater Bay Trust Company serve clients throughout the Silicon Valley and the San Francisco peninsula through offices in Cupertino, Palo Alto, Redwood City, Millbrae, San Bruno, San Francisco, San Jose and San Mateo. This document may contain forward-looking statements that are subject to ------------------------------------------------------------------------ risks and uncertainties that could cause actual results to differ materially - ---------------------------------------------------------------------------- from those projected. For a discussion of factors that could cause actual - -------------------------------------------------------------------------- results to differ, please see the Company's publicly available Securities and - ----------------------------------------------------------------------------- Exchange Commission filings, including its annual report on Form 10-K dated - --------------------------------------------------------------------------- December 31, 1997, and particularly the discussion of risk factors within that - ------------------------------------------------------------------------------ document. - -------- WE INVEST IN RELATIONSHIPS! GREATER BAY BANCORP JUNE 30, 1998 - FINANCIAL SUMMARY ($ IN 000'S, EXCEPT SHARE DATA)
- ---------------------------------------------------------------------------------------------------------------------- SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION DATA: JUN 30 MAR 31 DEC 31 SEPT 30 JUN 30 1998 1998 1997 1997 1997 ----------- ----------- ----------- ----------- ----------- Cash and Due From Banks $ 69,239 $ 70,749 $ 53,000 $ 49,436 $ 44,058 Investments 558,335 426,098 393,676 319,793 299,133 Loans: Commercial 357,758 350,705 345,742 319,376 316,828 Construction 139,850 121,446 112,514 115,797 112,760 Real Estate 227,652 217,845 196,217 191,564 164,313 Consumer and Other 81,750 79,177 82,914 64,807 59,689 Deferred Loan Fees, Net (2,446) (2,904) (2,765) (3,007) (2,700) ----------- ----------- ----------- ----------- ----------- Total Loans 804,564 766,269 734,622 688,537 650,890 Allowance for Loan Losses (17,584) (16,205) (16,093) (14,433) (13,584) ----------- ----------- ----------- ----------- ----------- Total Loans, Net 786,980 750,064 718,529 674,104 637,306 Other Assets 56,313 57,651 35,114 34,385 33,817 ----------- ----------- ----------- ----------- ----------- Total Assets $ 1,470,867 $ 1,304,562 $ 1,200,319 $ 1,077,718 $ 1,014,314 =========== =========== =========== =========== =========== Deposits: Demand, Non-Interest Bearing $ 263,121 $ 208,277 $ 219,495 $ 184,585 $ 169,031 NOW, MMDA and Savings 809,594 676,730 627,475 590,958 552,616 Time Certificates, $100,000 and over 180,891 175,381 183,147 147,255 123,707 Other Time Certificates 31,009 46,043 41,031 47,635 63,179 ----------- ----------- ----------- ----------- ----------- Total Deposits 1,284,615 1,106,431 1,071,148 970,433 908,533 ----------- ----------- ----------- ----------- ----------- Other Borrowings 70,000 71,900 19,480 - 2,969 Other Liabilities 10,919 22,967 10,433 7,869 7,128 ----------- ----------- ----------- ----------- ----------- Total Liabilities 1,365,534 1,201,298 1,101,061 978,302 918,630 ----------- ----------- ----------- ----------- ----------- Long-term Subordinated Debt 3,000 3,000 3,000 3,000 3,000 Trust Preferred Securities 20,000 20,000 20,000 20,000 20,000 Stockholders' Equity 82,333 80,264 76,258 76,416 72,684 ----------- ----------- ----------- ----------- ----------- Regulatory Capital 105,333 103,264 99,258 99,416 95,684 ----------- ----------- ----------- ----------- ----------- Total Liabilities and Shareholders' Equity $ 1,470,867 $ 1,304,562 $ 1,200,319 $ 1,077,718 $ 1,014,314 =========== =========== =========== =========== =========== Average Quarterly Loans, excluding Nonaccrual $ 753,510 $ 738,009 $ 716,971 $ 665,564 $ 623,557 Average Quarterly Investments $ 471,513 $ 410,650 $ 351,928 $ 327,222 $ 320,733 Average Quarterly Interest Bearing Liabilities $ 986,297 $ 955,914 $ 863,686 $ 809,927 $ 771,942 Average Quarterly Assets $ 1,359,402 $ 1,222,582 $ 1,132,476 $ 1,060,029 $ 1,014,633 Average Quarterly Equity $ 79,480 $ 77,252 $ 77,043 $ 74,912 $ 71,834 Regulatory Capital Tier I or Leverage Capital $ 101,935 $ 99,724 $ 96,035 $ 96,418 $ 92,540 Total Capital $ 117,545 $ 114,336 $ 110,096 $ 109,591 $ 105,057 Nonperforming Assets Nonaccrual Loans $ 3,758 $ 3,152 $ 2,971 $ 4,565 $ 5,783 Loans 90 Days Past Due & Accruing 75 108 158 575 147 Restructured Loans 531 903 1,062 1,453 1,705 OREO 730 1,001 1,303 1,069 1,402 ----------- ----------- ----------- ----------- ----------- Total Nonperforming Assets $ 5,094 $ 5,164 $ 5,494 $ 7,662 $ 9,037 =========== =========== =========== =========== =========== Greater Bay Trust Company Assets $ 636,362 $ 576,290 $ 577,746 $ 539,800 $ 486,679 - ----------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------ SELECTED QUARTERLY CONSOLIDATED FINANCIAL CONDITION RATIOS: JUN 30 MAR 31 DEC 31 SEPT 30 JUN 30 1998 1998 1997 1997 1997 --------- ---------- --------- --------- ---------- Loan to Deposit Ratio 62.63% 69.26% 68.58% 70.95% 71.64% Ratio of Allowance for Loan Losses to: Total Loans 2.19% 2.11% 2.19% 2.10% 2.09% Total Nonperforming Assets 345.19% 313.81% 292.92% 188.37% 150.32% Total Nonperforming Assets to Total Assets 0.35% 0.40% 0.46% 0.71% 0.89% Ratio of Net Charge-offs to Average Loans, annualized 0.01% 0.62% 0.27% 0.20% 0.20% Earning Assets to Total Assets 92.57% 91.38% 93.98% 93.42% 93.36% Earning Assets to Interest-Bearing Liabilities 133.29% 132.73% 132.46% 128.11% 128.05% Capital Ratios: Leverage 7.50% 8.16% 8.48% 9.10% 9.12% Tier 1 Risk Based Capital 10.22% 10.76% 10.90% 11.84% 12.14% Total Risk Based Capital 11.79% 12.34% 12.49% 13.46% 13.79% Risk Weighted Assets $ 997,119 $ 926,374 $ 881,337 $ 814,260 $ 762,053 Book Value Per Share $ 8.96 $ 8.82 $ 8.47 $ 8.56 $ 8.16 Total Shares Outstanding 9,192,134 9,098,764 9,006,930 8,927,152 8,908,538
Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and Peninsula Bank of Commerce and Pacific Rim Bancorporation (the parent of Golden Gate Bank), on a pooling-of-interests basis. - ------------------------------------------------------------------------------- GREATER BAY BANCORP JUNE 30, 1998 - FINANCIAL SUMMARY ($ IN 000'S, EXCEPT SHARE DATA)
- ------------------------------------------------------------------------------------------------------------------------------- SELECTED QUARTERLY CONSOLIDATED OPERATING DATA: SECOND FIRST FOURTH THIRD SECOND QUARTER QUARTER QUARTER QUARTER QUARTER 1998 1998 1997 1997 1997 -------- -------- -------- -------- -------- Interest Income $ 26,655 $ 24,732 $ 23,966 $ 22,304 $ 20,910 Interest Expense 11,228 10,082 9,254 8,524 8,281 -------- -------- -------- -------- -------- Net Interest Income before Provision for Loan Losses 15,427 14,650 14,712 13,780 12,629 Provision for Loan Losses 1,307 936 1,000 1,224 2,275 -------- -------- -------- -------- -------- Net Interest Income after Provision for Loan Losses 14,120 13,714 13,712 12,556 10,354 Other Income: Trust Fees 727 550 603 550 481 Depositor Service Fees 349 420 394 433 400 Gain on Sale of SBA Loans 221 244 269 216 181 Loan Fees 110 63 53 74 39 Gain on Investments (8) 8 25 5 8 Other Income (1) 199 (341) 114 166 257 ------- -------- -------- -------- -------- 1,598 944 1,458 1,444 1,366 Nonrecurring - Warrant Income - 497 14 34 1,114 ------- -------- -------- -------- -------- Other Income 1,598 1,441 1,472 1,478 2,480 Operating Expenses: Compensation and Benefits 5,548 5,251 5,268 4,951 4,727 Occupancy and Equipment 1,514 1,371 1,342 1,376 1,295 Professional Services & Legal 485 382 392 506 500 FDIC Insurance and Assessments 77 89 73 70 83 Client Services (20) 151 80 83 79 Other Real Estate, Net (8) 24 25 (10) 71 Other Expenses 1,554 1,587 2,127 1,269 1,354 ------- -------- -------- -------- -------- 9,150 8,855 9,307 8,245 8,109 Nonrecurring Expenses (2) - 701 - - - ------- -------- -------- -------- -------- Other Expenses 9,150 9,556 9,307 8,245 8,109 ------- -------- -------- -------- -------- Income before Income Taxes & Merger and Other Related Nonrecurring Costs 6,568 5,599 5,877 5,789 4,725 Income Tax Expense 2,331 1,894 2,037 2,146 1,714 ------- -------- -------- -------- -------- Net Income before Merger and Other Related Nonrecurring Costs 4,237 3,705 3,840 3,643 3,011 Merger and Other Related Nonrecurring Costs, net of tax 1,314 - 2,282 - - ------- -------- -------- -------- -------- Net Income $ 2,923 $ 3,705 $ 1,558 $ 3,643 $ 3,011 ======= ======== ======== ======== ======== - -------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------- SELECTED QUARTERLY CONSOLIDATED OPERATING RATIOS: SECOND FIRST FOURTH THIRD SECOND QUARTER QUARTER QUARTER QUARTER QUARTER 1998 1998 1997 1997 1997 -------- -------- -------- -------- -------- Income Per Share (3) (before merger and other related nonrecurring costs) Basic $ 0.46 $ 0.41 $ 0.43 $ 0.41 $ 0.34 Diluted $ 0.43 $ 0.37 $ 0.39 $ 0.38 $ 0.32 Net Income Per Share (3) Basic $ 0.32 $ 0.41 $ 0.17 $ 0.41 $ 0.34 Diluted $ 0.29 $ 0.37 $ 0.16 $ 0.38 $ 0.32 Weighted Average Common Shares Outstanding (4) 9,163,034 9,059,152 8,968,984 8,922,882 8,895,548 Weighted Average Common & Common Equivalent Shares Outstanding (4) 9,956,808 9,957,456 9,781,420 9,645,818 9,484,672 Return on Quarterly Average Assets, annualized (5) 1.25% 1.23% 1.35% 1.36% 1.18% Return on Quarterly Average Equity, annualized (5) 21.62% 19.45% 19.78% 22.05% 16.63% Net Interest Margin - Average Earning Assets 5.05% 5.12% 5.52% 5.57% 5.36% Operating Expense Ratio (before Merger and Other Related Nonrecurring Costs) 2.70% 3.17% 3.26% 3.09% 3.21% Efficiency Ratio (before Merger and Other Related Nonrecurring Costs) 53.75% 59.39% 57.51% 54.04% 53.67% - -----------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- (1) Q1 of 1998 includes a $700,000 write-down of an equity investment in accordance with APB 18. (2) Q1 of 1998 nonrecurring expenses is comprised of a $701,000 donation to the GBB Foundation. (3) Earnings per share for prior periods have been restated as required by the adoption of SFAS No. 128. In accordance with the newly adopted accounting standard, Earnings Per Share is now presented on a Basic and Diluted basis. (4) Restated to reflect the 2-for-1 stock split declared for shareholders of record as of April 30, 1998. (5) Before Merger and Other Related Nonrecurring Costs of $1.31 million, net of tax, in Q2 of 1998 and $2.28 million, net of tax, in Q4 of 1997. Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and Peninsula Bank of Commerce and Pacific Rim Bancorporation (the parent of Golden Gate Bank), on a pooling-of-interests basis. - -------------------------------------------------------------------------------- GREATER BAY BANCORP JUNE 30, 1998 - FINANCIAL SUMMARY ($ IN 000'S, EXCEPT SHARE DATA) - -------------------------------------------------------------------------------- SELECTED YEAR TO DATE CONSOLIDATED OPERATING DATA: JUNE 30, JUNE 30, 1998 1997 ---------- ---------- Interest Income $ 51,387 $ 39,191 Interest Expense 21,310 15,136 ---------- ---------- Net Interest Income Before Provision for Loan Losses 30,077 24,055 Provision for Loan Losses 2,243 4,268 ---------- ---------- Net Interest Income After Provision for Loan Losses 27,834 19,787 Other Income (1) 2,542 2,481 Other Income - nonrecurring 497 1,114 ---------- ---------- Total Other Income 3,039 3,595 Other Expenses 18,005 15,551 Other Expenses - nonrecurring (2) 701 (1,287) ---------- ---------- Total Other Expenses 18,706 14,264 ---------- ---------- Income before Income Taxes & Merger and Other Related Nonrecurring Costs 12,167 9,118 Income Tax Expense 4,225 3,303 ---------- ---------- Net Income before Merger and Other Related Nonrecurring Costs 7,942 5,815 Merger and Other Related Nonrecurring Costs, net of tax 1,314 - ---------- ---------- Net Income $ 6,628 $ 5,815 ---------- ---------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SELECTED YEAR TO DATE CONSOLIDATED OPERATING RATIOS: JUNE 30, JUNE 30, 1998 1997 ---------- ---------- Income Per Share (3) (before merger and other related nonrecurring costs) Basic $ 0.87 $ 0.65 Diluted $ 0.80 $ 0.61 Net Income Per Share (3) Basic $ 0.73 $ 0.65 Diluted $ 0.67 $ 0.61 Weighted Average Common Shares Outstanding (4) 9,106,015 8,923,764 Weighted Average Common & Common Equivalent Shares Outstanding (4) 9,924,158 9,594,479 Return on Average Assets, annualized (5) 1.24% 1.19% Return on Average Equity, annualized (5) 20.29% 16.72% Net Interest Margin - Average Earning Assets 5.00% 5.33% Operating Expense Ratio (before Merger and Other Related Nonrecurring Costs) 2.92% 2.91% Efficiency Ratio (before Non-recurring Items and Merger and Other Related Non-recurring Costs) 55.20% 58.60% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (1) Q1 of 1998 includes a $700,000 write-down of an equity investment in accordance with APB 18. (2) Q1 of 1998 nonrecurring expenses is comprised of a $701,000 donation to the GBB Foundation. Q1 of 1997 nonrecurring expenses inc ludes $413,000 in nonrecurring charges as well as a $1.70 million recovery from GBB's insurance coverage related to the $1.70 million legal settlement charge that occurred in the second quarter of 1995. (3) Earnings per share for prior periods have been restated as required by the adoption of SFAS No. 128. In accordance with the newly adopted accounting standard, Earnings Per Share is now presented on a Basic and Diluted basis. (4) Restated to reflect the 2-for-1 stock split declared for shareholders of record as of April 30, 1998. (5) Before Merger and Other Related Non-recurring Costs of $1.31 million, net of tax, in Q2 of 1998. Note: Prior periods have been restated to reflect the mergers between Greater Bay Bancorp and Peninsula Bank of Commerce and Pacific Rim Bancorporation (the parent of Golden Gate Bank), on a pooling-of-interests basis. - -------------------------------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----