-----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, NfLzXuTk/fCXhyHvORnLsqgIWypWJK+720pBigymFNskj/qRNzHCL/BIOHGfmP2x CDGUb81gnxjjomzc3xaS4A== 0001012870-00-001941.txt : 20000407 0001012870-00-001941.hdr.sgml : 20000407 ACCESSION NUMBER: 0001012870-00-001941 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000406 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000406 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREATER BAY BANCORP CENTRAL INDEX KEY: 0000775473 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 770387041 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-25034 FILM NUMBER: 595162 BUSINESS ADDRESS: STREET 1: 2860 WEST BAYSHORE ROAD CITY: PALO ALTO STATE: CA ZIP: 94303 BUSINESS PHONE: 4153751555 MAIL ADDRESS: STREET 1: 2860 BAYSHORE ROAD 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): April 6, 2000 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 Item 5. Other Events. On December 14, 1999, Greater Bay Bancorp (the "Registrant") signed a definitive agreement for a merger with Coast Bancorp ("Coast"), as a result of which Coast Commercial Bank will become a wholly owned subsidiary of the Registrant. On January 26, 2000, the Registrant signed a definitive agreement with Bank of Santa Clara ("BSC") and GBB Merger Corp. providing for the merger of GBB Merger Corp. with and into BSC, as a result of which BSC will become a wholly owned subsidiary of the Registrant. On March 21, 2000, the Registrant signed a definitive agreement with Bank of Petaluma ("BOP") and DKSS Corp. providing for the merger of DKSS Corp. with and into BOP, as a result of which BOP will become a wholly owned subsidiary of the Registrant. The purpose of this Current Report on Form 8-K is to report the pro forma financial information relating to these proposed mergers. Pro Forma Financial Information Included as Exhibit 99.1 of this Current Report on Form 8-K is unaudited pro forma condensed combined financial information. The Unaudited Pro Forma Condensed Combined Balance Sheet as of December 31, 1999 combines the historical consolidated balance sheets of the Registrant, Coast, BSC and BOP, as if each of these mergers had been effective on December 31, 1999, after giving effect to certain adjustments. These adjustments are based on estimates. The Unaudited Pro Forma Condensed Combined Statements of Operations for the years ended December 31, 1999, 1998 and 1997 present the combined results of operations of the Registrant, Coast, BSC and BOP as if the mergers had been effective at the beginning of each period. No assurance can be given when and if the proposed mergers with Coast, BSC and BOP will be consummated. The unaudited pro forma condensed combined financial information and accompanying notes reflect the application of the pooling of interests method of accounting for the mergers. Under this method of accounting, the recorded assets, liabilities, shareholders' equity, income and expenses of the Registrant, Coast, BSC and BOP are combined and reflected at their historical amounts. The pro forma combined figures shown in the unaudited pro forma condensed combined financial information are simply arithmetical combinations of the Registrant's, Coast's, BSC's and BOP's separate financial results; you should not assume that the Registrant, Coast, BSC and BOP would have achieved the pro forma combined results if they had actually been combined during the periods presented. The combined company expects to achieve merger benefits in the form of operating cost savings. The pro forma earnings, which do not reflect any direct costs or potential savings which are expected to result from the consolidation of the operations of the Registrant, Coast, BSC and BOP are not indicative of the results of future operations. No assurances can be given with respect to the ultimate level of expense savings. 2 Pro Forma Earnings with Operating Efficiencies The unaudited pro forma condensed combined financial information contained in Exhibit 99.1 indicates that, for the year ended December 31, 1999, the Registrant's diluted net earnings per share (before merger and other related nonrecurring costs and extraordinary items) would have been $2.24, a decline of $0.06 from the reported earnings before the mergers with Coast, BSC and BOP. However, these pro forma earnings per share do not reflect the operating efficiencies that the Registrant has realized in all of its previous mergers. On average, the Registrant has realized operating efficiencies from its prior mergers in excess of 15% of the operating expenses of the acquired institutions. The following table details the impact of applying the Registrant's historical percentage of operating efficiencies attained on a pro forma basis to December 31, 1999 earnings (in thousands, except per share data):
Operating Net Diluted Expenses Income (1) EPS (1) ----------------- --------------- ------------- Pro-Forma Net Income Before Operating Efficiencies $113,074 $46,195 $2.24 Operating Expenses: Coast 13,372 13,372 BSC 14,294 14,294 BOP 6,690 6,690 -------- ------- Total 34,356 34,356 Greater Bay Anticipated Merger & Acquisition Operating Efficiencies 18.45% 18.45% Estimated Operating Efficiencies, Gross 6,340 6,340 Estimated Operating Efficiencies, Net of Tax 3,680 3,680 -------- ------- Adjusted Pro-Forma Net Income After Operating Efficiencies $109,394 $49,875 $2.39 ======== =======
(1) - Before merger and other related nonrecurring costs and extraordinary items. No assurance can be given that these operating efficiencies will be achieved. Information contained under this caption constitutes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. The Registrant's actual results may differ significantly from the results discussed in these forward-looking statements. Factors that might cause such a difference include but are not limited to difficulties in integrating the business of the newly acquired institutions, the timing relating to achieving the operating efficiencies, economic conditions, competition in the geographic and business areas in which the Registrant conducts its operations and government regulation. 3 Item 7. Financial Statements and Exhibits. Exhibits - -------- 99.1 Unaudited Pro Forma Condensed Combined Balance Sheet as of December 31, 1999 and Unaudited Pro Forma Condensed Combined Statements of Operations for the years ended December 31, 1999, 1998 and 1997 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Greater Bay Bancorp (Registrant) Dated: April 6, 2000 By: /s/ Linda M. Iannone -------------------- Linda M. Iannone Senior Vice President and General Counsel 5 EX-99.1 2 UNAUDITED PRO FORMA STATEMENTS EXHIBIT 99.1 Unaudited Pro Forma Condensed Combined Balance Sheet As of December 31, 1999 (In thousands)
Historical Historical Greater Coast Greater Bay & Coast Bay Bancorp Adjustments (1) Bancorp Combined --- ------- --------------- ---------------- Assets Cash and due from banks $ 107,591 $ 18,295 $ - $ 125,886 Federal funds sold 200,550 15,000 - 215,550 Other short-term securities 30,257 - - 30,257 Securities available-for-sale 332,133 112,764 - 444,897 Securities held-to-maturity and other 163,036 - - 163,036 Total loans, net 1,880,756 204,586 - 2,085,342 Property, premises and equipment 23,878 1,994 - 25,872 Interest receivable and other assets 107,887 17,369 400 125,656 ----------------------------------------------------------------- Total assets $ 2,846,088 $ 370,008 $ 400 $ 3,216,496 ================================================================= Liabilities Total Deposits $ 2,506,386 $ 300,613 $ - $ 2,806,999 Other borrowings 69,100 31,500 - 100,600 Subordinated debt - - - - Other liabilities 47,007 4,856 3,800 55,663 Trust Preferred Securities 50,000 - - 50,000 ----------------------------------------------------------------- Total liabilities 2,672,493 336,969 3,800 3,013,262 ----------------------------------------------------------------- Shareholders' equity 173,595 33,039 (3,400) 203,234 ----------------------------------------------------------------- Total liabilities and shareholders' equity $ 2,846,088 $ 370,008 $ 400 $ 3,216,496 ================================================================= Historical Greater Bay & Historical Bank of Bank of Santa Bank of Santa Clara Adjustments (2) Clara Combined Petaluma ----------- --------------- -------------- -------- Assets Cash and due from banks $ 11,244 $ - $ 118,835 $ 9,795 Federal funds sold - - 200,550 3,300 Other short-term securities - - 30,257 297 Securities available-for-sale - - 332,133 48,840 Securities held-to-maturity and other 88,017 - 251,053 6,725 Total loans, net 212,770 - 2,093,526 118,312 Property, premises and equipment 10,086 - 33,964 1,640 Interest receivable and other assets 4,817 1,000 113,704 5,790 ------------------------------------------------------------------ Total assets $ 326,934 $ 1,000 $ 3,174,022 $ 194,699 ================================================================== Liabilities Total Deposits $ 293,698 $ - $ 2,800,084 $ 162,190 Other borrowings - - 69,100 16,452 Subordinated debt - - - Other liabilities 1,867 4,400 53,274 1,164 Trust Preferred Securities - - 50,000 - ------------------------------------------------------------------ Total liabilities 295,565 4,400 2,972,458 179,806 ------------------------------------------------------------------ Shareholders' equity 31,369 (3,400) 201,564 14,893 ------------------------------------------------------------------ Total liabilities and shareholders' equity $ 326,934 $ 1,000 $ 3,174,022 $ 194,699 ================================================================== Historical Coast Bancorp, Greater Bay & Bank of Santa Clara & Bank of Petaluma Bank of Petaluma Adjustments (3) Combined Combined --------------- -------- -------- Assets Cash and due from banks $ - $ 117,386 $ 39,334 Federal funds sold - 203,850 18,300 Other short-term securities - 30,554 297 Securities available-for-sale - 380,973 161,604 Securities held-to-maturity and other - 169,761 94,742 Total loans, net - 1,999,068 535,668 Property, premises and equipment - 25,518 13,720 Interest receivable and other assets 500 114,177 27,976 ------------------------------------------------------ Total assets $ 500 $ 3,041,287 $ 891,641 ====================================================== Liabilities Total Deposits $ - $ 2,668,576 $ 756,501 Other borrowings - 85,552 47,952 Subordinated debt - - Other liabilities 3,300 51,471 7,887 Trust Preferred Securities - 50,000 0 ------------------------------------------------------ Total liabilities 3,300 2,855,599 812,340 ------------------------------------------------------ Shareholders' equity (2,800) 185,688 79,301 ------------------------------------------------------ Total liabilities and shareholders' equity $ 500 $ 3,041,287 $ 891,641 ====================================================== Greater Bay, Coast Bancorp, Bank of Santa Clara & Bank of Petaluma Adjustments (1, 2 & 3) Combined ---------------------- --------- Assets Cash and due from banks $ - $ 146,925 Federal funds sold - 218,850 Other short-term securities - 30,554 Securities available-for-sale - 493,737 Securities held-to-maturity and other - 257,778 Total loans, net - 2,416,424 Property, premises and equipment - 37,598 Interest receivable and other assets 1,900 137,763 ------------------------------------------------ Total assets $ 1,900 $ 3,739,629 ================================================ Liabilities Total Deposits 3,262,887 Other borrowings - 117,052 Subordinated debt - Other liabilities 11,500 66,394 Trust Preferred Securities - 50,000 ------------------------------------------------ Total liabilities 11,500 3,496,333 ------------------------------------------------ Shareholders' equity (9,600) 243,296 ------------------------------------------------ Total liabilities and shareholders' equity $ 1,900 $ 3,739,629 ================================================
(1) The table above reflects all nonrecurring Greater Bay and Coast Bancorp estimated merger-related costs as of December 31, 1999. The nonrecurring Greater Bay and Coast Bancorp estimated merger-related costs are not included on the unaudited pro forma condensed combined statement of operations but are included on the unaudited pro forma condensed combined balance sheet as a reduction to shareholders' equity, net of a $2.0 million tax benefit. These costs will be charged to expense immediately following the consummation of the merger. (2) The table above reflects all nonrecurring Greater Bay and Bank of Santa Clara estimated merger-related costs as of December 31, 1999. The nonrecurring Greater Bay and Bank of Santa Clara estimated merger-related costs are not included on the unaudited pro forma condensed combined statement of operations but are included on the unaudited pro forma condensed combined balance sheet as a reduction to shareholders' equity, net of a $2.1 million tax benefit. These costs will be charged to expense immediately following the consummation of the merger. (3) The table above reflects all nonrecurring Greater Bay and Bank of Petaluma estimated merger-related costs as of December 31, 1999. The nonrecurring Greater Bay and Bank of Petaluma estimated merger-related costs are not included on the unaudited pro forma condensed combined statement of operations but are included on the unaudited pro forma condensed combined balance sheet as a reduction to shareholders' equity, net of a $1.7 million tax benefit. These costs will be charged to expense immediately following the consummation of the merger. Unaudited Pro Forma Condensed Combined Statement of Operations For the Year Ended December 31, 1999 (In thousands)
Historical Historical Greater Coast Greater Bay & Coast Bay Bancorp Adjustments (2) Bancorp Combined --- ------- --------------- ---------------- Interest on loans $ 149,883 $ 19,403 $ 169,286 Interest on investment securities 27,675 7,013 34,688 Other interest income 12,740 885 13,625 ---------- --------- -------------- ----------- Total interest income 190,298 27,301 217,599 Interest on deposits 68,049 6,179 74,228 Other interest expense 8,508 1,094 9,602 ---------- --------- -------------- ----------- Net interest income 113,741 20,028 133,769 Provision for loans losses 13,064 - 13,064 ---------- --------- -------------- ----------- Net interest income after provision for loan losses 100,677 20,028 120,705 Other income 33,306 4,670 37,976 Operating expenses 79,212 13,372 92,584 ---------- --------- -------------- ----------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 54,771 11,326 66,097 Provision for income taxes 17,659 4,387 22,046 ---------- --------- -------------- ----------- Income before merger and other related nonrecurring costs, net of tax 37,112 6,939 44,051 Merger and other related nonrecurring costs, net of tax (6,486) - (6,486) ---------- --------- -------------- ----------- Income before extraordinary items 30,626 6,939 37,565 Extraordinary item (88) - (88) ---------- --------- -------------- ----------- Net income $ 30,538 $ 6,939 37,477 ========== ========= ============== =========== Net income per share - basic (1) $ 2.45 $ 1.45 $ 2.39 ========== ========= ============== =========== Average common shares outstanding 13,310,000 4,792,000 (1,557,000) 16,545,000 ========== ========= ============== =========== Net income per share - diluted (1) $ 2.30 $ 1.41 $ 2.26 ========== ========= ============== =========== Average common and common equivalent shares outstanding 14,189,000 4,910,000 (1,596,000) 17,503,000 ========== ========= ============== =========== Historical Greater Bay & Historical Bank of Bank of Santa Bank of Santa Clara Adjustments (3) Clara Combined Petaluma ----------- --------------- -------------- --------- Interest on loans $ 18,384 $ 168,267 $ 9,810 Interest on investment securities 5,200 32,875 3,746 Other interest income 591 13,331 117 ---------- --------------- ----------- ---------- Total interest income 24,175 214,473 13,673 Interest on deposits 6,213 74,262 4,404 Other interest expense - 8,508 641 ---------- --------------- ----------- ---------- Net interest income 17,962 131,703 8,628 Provision for loans losses 675 13,739 300 ---------- --------------- ----------- ---------- Net interest income after provision for loan losses 17,287 117,964 8,328 Other income 3,808 37,114 1,195 Operating expenses 14,294 93,506 6,196 ---------- --------------- ----------- ---------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 6,801 61,572 3,327 Provision for income taxes 2,398 20,057 1,023 ---------- --------------- ----------- ---------- Income before merger and other related nonrecurring costs, net of tax 4,403 41,515 2,304 Merger and other related nonrecurring costs, net of tax - (6,486) - ---------- --------------- ----------- ---------- Income before extraordinary items 4,403 35,029 2,304 Extraordinary item - (88) - ---------- --------------- ----------- ---------- Net income $ 4,403 $ 34,941 $ 2,304 ========== =============== =========== ========== Net income per share - basic (1) $ 1.91 $ 2.41 $ 1.61 ========== =============== =========== ========== Average common shares outstanding 2,310,000 (301,000) 15,319,000 1,428,000 ========== =============== =========== ========== Net income per share - diluted (1) $ 1.86 $ 2.27 $ 1.55 ========== =============== =========== ========== Average common and common equivalent shares outstanding 2,369,000 (308,000) 16,250,000 1,491,000 ========== =============== =========== ========== Historical Coast Bancorp, Greater Bay & Bank of Santa Clara Bank of Petaluma and Bank of Adjustments (4) Combined Petaluma Combined --------------- -------- ----------------- Interest on loans $ 159,693 $ 47,597 Interest on investment securities 31,421 15,959 Other interest income 12,857 1,593 --------------- ---------- ---------- Total interest income 203,971 65,149 Interest on deposits 72,453 16,796 Other interest expense 9,149 1,735 --------------- ---------- ---------- Net interest income 122,369 46,618 Provision for loans losses 13,364 975 --------------- ---------- ---------- Net interest income after provision for loan losses 109,005 45,643 Other income 34,501 9,673 Operating expenses 85,408 33,862 --------------- ---------- ---------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 58,098 21,454 Provision for income taxes 18,682 7,808 --------------- ---------- ---------- Income before merger and other related nonrecurring costs, net of tax 39,416 13,646 Merger and other related nonrecurring costs, net of tax (6,486) - --------------- ---------- ---------- Income before extraordinary items 32,930 13,646 Extraordinary item (88) - --------------- ---------- ---------- Net income $ 32,842 $ 13,646 =============== ========== ========== Net income per share - basic (1) $ 2.44 $ 1.60 =============== ========== ========== Average common shares outstanding (450,000) 14,288,000 8,530,000 =============== ========== ========== Net income per share - diluted (1) $ 2.29 $ 1.56 =============== ========== ========== Average common and common equivalent shares outstanding (470,000) 15,210,000 8,770,000 =============== ========== ========== Greater Bay, Coast Bancorp, Bank of Santa Clara & Bank of Adjustments (2, 3 & 4) Petaluma Combined ---------------------- ----------------- Interest on loans $ - $ 197,480 Interest on investment securities - 43,634 Other interest income - 14,333 --------------- --------------- Total interest income - 255,447 Interest on deposits - 84,845 Other interest expense - 10,243 --------------- --------------- Net interest income - 160,359 Provision for loans losses - 14,039 --------------- --------------- Net interest income after provision for loan losses - 146,320 Other income - 42,979 Operating expenses - 113,074 --------------- --------------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items - 76,225 Provision for income taxes - 25,467 --------------- --------------- Income before merger and other related nonrecurring costs, net of tax - 50,758 Merger and other related nonrecurring costs, net of tax - (6,486) --------------- --------------- Income before extraordinary items - 44,272 Extraordinary item - (88) --------------- --------------- Net income $ - $ 44,184 =============== =============== Net income per share - basic (1) $ 2.37 =============== =============== Average common shares outstanding (2,308,000) 19,532,000 =============== =============== Net income per share - diluted (1) $ 2.24 =============== =============== Average common and common equivalent shares outstanding (2,374,000) 20,585,000 =============== ===============
(1) Before merger and other related nonrecurring costs and extraordinary items (2) Calculated as the historical Greater Bay weighted average shares plus the historical Coast Bancorp weighted average shares adjusted for the assumed conversion ratio of 0.675. (3) Calculated as the historical Greater Bay weighted average shares plus the historical Bank of Santa Clara weighted average shares adjusted for the assumed conversion ratio of 0.870. (4) Calculated as the historical Greater Bay weighted average shares plus the historical Bank of Petaluma weighted average shares adjusted for the assumed conversion ratio of 0.685. Unaudited Pro Forma Condensed Combined Statement of Operations For the Year Ended December 31, 1998 (In thousands)
Historical Historical Greater Coast Bay Bancorp --- ------- Interest on loans $ 111,361 $ 16,891 Interest on investment securities 22,740 5,848 Other interest income 11,805 1,388 ---------- ---------- Total interest income 145,906 24,127 Interest on deposits 50,563 5,589 Other interest expense 8,255 1,174 ---------- ---------- Net interest income 87,088 17,364 Provision for loans losses 7,159 300 ---------- ---------- Net interest income after provision for loan losses 79,929 17,064 Other income 11,370 5,987 Operating expenses 56,405 12,482 ---------- ---------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 34,894 10,569 Provision for income taxes 11,666 4,408 ---------- ---------- Income before merger and other related nonrecurring costs, net of tax 23,228 6,161 Merger and other related nonrecurring costs, net of tax (1,674) - ---------- ---------- Net income $ 21,554 $ 6,161 ========== ========== Net income per share - basic (1) $ 1.75 $ 1.28 ========== ========== Average common shares outstanding 13,091,000 4,803,000 ========== ========== Net income per share - diluted (1) $ 1.63 $ 1.25 ========== ========== Average common and common equivalent shares outstanding 14,047,000 4,936,000 ========== ========== Greater Bay & Coast Adjustments (2) Bancorp Combined --------------- ------------------ Interest on loans $ 128,252 Interest on investment securities 28,588 Other interest income 13,193 ---------- ---------- Total interest income 170,033 Interest on deposits 56,152 Other interest expense 9,429 ---------- ---------- Net interest income 104,452 Provision for loans losses 7,459 ---------- ---------- Net interest income after provision for loan losses 96,993 Other income 17,357 Operating expenses 68,887 ---------- ---------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 45,463 Provision for income taxes 16,074 ---------- ---------- Income before merger and other related nonrecurring costs, net of tax 29,389 Merger and other related nonrecurring costs, net of tax (1,674) ---------- ---------- Net income $ 27,715 ========== ========== Net income per share - basic (1) $ 1.78 ========== ========== Average common shares outstanding (1,561,000) 16,333,000 ========== ========== Net income per share - diluted (1) $ 1.67 ========== ========== Average common and common equivalent shares outstanding (1,604,000) 17,379,000 ========== ========== Historical Bank of Santa Clara Adjustments (3) ----------- -------------- Interest on loans $ 18,145 Interest on investment securities 3,836 Other interest income 456 --------- ---------- Total interest income 22,437 Interest on deposits 6,247 Other interest expense - --------- ---------- Net interest income 16,190 Provision for loans losses 600 --------- ---------- Net interest income after provision for loan losses 15,590 Other income 3,398 Operating expenses 13,014 --------- ---------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 5,974 Provision for income taxes 2,018 --------- ---------- Income before merger and other related nonrecurring costs, net of tax 3,956 Merger and other related nonrecurring costs, net of tax - --------- ---------- Net income $ 3,956 ========= ========== Net income per share - basic (1) $ 1.73 ========= ========== Average common shares outstanding 2,284,000 (297,000) ========= ========== Net income per share - diluted (1) $ 1.69 ========= ========== Average common and common equivalent shares outstanding 2,336,000 (304,000) ========= ========== Greater Bay & Historical Bank of Santa Bank of Clara Combined Petaluma ------------- -------- Interest on loans $ 129,506 $ 9,145 Interest on investment securities 26,576 3,426 Other interest income 12,261 173 ---------- --------- Total interest income 168,343 12,744 Interest on deposits 56,810 4,373 Other interest expense 8,255 564 ---------- --------- Net interest income 103,278 7,807 Provision for loans losses 7,759 220 ---------- --------- Net interest income after provision for loan losses 95,519 7,587 Other income 14,768 1,186 Operating expenses 69,419 5,645 ---------- --------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 40,868 3,128 Provision for income taxes 13,684 1,012 ---------- --------- Income before merger and other related nonrecurring costs, net of tax 27,184 2,116 Merger and other related nonrecurring costs, net of tax (1,674) - ---------- --------- Net income $ 25,510 $ 2,116 ========== ========= Net income per share - basic (1) $ 1.78 $ 1.54 ========== ========= Average common shares outstanding 15,078,000 1,370,000 ========== ========= Net income per share - diluted (1) $ 1.67 $ 1.45 ========== ========= Average common and common equivalent shares outstanding 16,079,000 1,464,000 ========== ========= Greater Bay & Bank of Petaluma Adjustments (4) Combined -------------- -------- Interest on loans $ 120,506 Interest on investment securities 26,166 Other interest income 11,978 ---------- ---------- Total interest income 158,650 Interest on deposits 54,936 Other interest expense 8,819 ---------- ---------- Net interest income 94,895 Provision for loans losses 7,379 ---------- ---------- Net interest income after provision for loan losses 87,516 Other income 12,556 Operating expenses 62,050 ---------- ---------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 38,022 Provision for income taxes 12,678 ---------- ---------- Income before merger and other related nonrecurring costs, net of tax 25,344 Merger and other related nonrecurring costs, net of tax (1,674) ---------- ---------- Net income $ 23,670 ========== ========== Net income per share - basic (1) $ 1.78 ========== ========== Average common shares outstanding (432,000) 14,029,000 ========== ========== Net income per share - diluted (1) $ 1.66 ========== ========== Average common and common equivalent shares outstanding (461,000) 15,050,000 ========== ========== Bank of Santa Clara and Bank of Petaluma Combined Adjustments (2,3 & 4) -------- -------------------- Interest on loans $ 44,181 Interest on investment securities 13,110 Other interest income 2,017 --------- ---------- Total interest income 59,308 Interest on deposits 16,209 Other interest expense 1,738 --------- ---------- Net interest income 41,361 Provision for loans losses 1,120 --------- ---------- Net interest income after provision for loan losses 40,241 Other income 10,571 Operating expenses 31,141 --------- ---------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 19,671 Provision for income taxes 7,438 --------- ---------- Income before merger and other related nonrecurring costs, net of tax 12,233 Merger and other related nonrecurring costs, net of tax - --------- ---------- Net income 12,233 ========= ========== Net income per share - basic (1) $ 1.45 ========= ========== Average common shares outstanding 8,457,000 (2,290,000) ========= ========== Net income per share - diluted (1) $ 1.40 ========= ========== Average common and common equivalent shares outstanding 8,736,000 (2,369,000) ========= ========== Greater Bay, Coast Bancorp, Bank of Santa Clara & Bank of Petaluma Combined ----------------- Interest on loans $ 155,542 Interest on investment securities 35,850 Other interest income 13,822 ---------- Total interest income 205,214 Interest on deposits 66,772 Other interest expense 9,993 ---------- Net interest income 128,449 Provision for loans losses 8,279 ---------- Net interest income after provision for loan losses 120,170 Other income 21,941 Operating expenses 87,546 ---------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 54,565 Provision for income taxes 19,104 ---------- Income before merger and other related nonrecurring costs, net of tax 35,461 Merger and other related nonrecurring costs, net of tax (1,674) ---------- Net income $ 33,787 ========== Net income per share - basic (1) $ 1.82 ========== Average common shares outstanding 19,258,000 ========== Net income per share - diluted (1) $ 1.72 ========== Average common and common equivalent shares outstanding 20,414,000 ==========
(1) Before merger and other related nonrecurring costs and extraordinary items. (2) Calculated as the historical Greater Bay weighted average shares plus the historical Coast Bancorp weighted average shares adjusted for the assumed conversion ratio of 0.675. (3) Calculated as the historical Greater Bay weighted average shares plus the historical Bank of Santa Clara weighted average shares adjusted for the assumed conversion ratio of 0.870. (4) Calculated as the historical Greater Bay weighted average shares plus the historical Bank of Petaluma weighted average shares adjusted for the assumed conversion ratio of 0.685. Unaudited Pro Forma Condensed Combined Statement of Operations For the Year Ended December 31, 1997 (In thousands)
Historical Historical Greater Coast Greater Bay & Coast Bay Bancorp Adjustments (2) Bancorp Combined --- ------- --------------- ------------------- Interest on loans $ 91,138 $ 14,514 $ 105,652 Interest on investment securities 12,028 5,052 17,080 Other interest income 10,292 1,244 11,536 -------------- ----------- ------------- ---------------- Total interest income 113,458 20,810 134,268 Interest on deposits 38,981 4,116 43,097 Other interest expense 3,544 1,511 5,055 -------------- ----------- ------------- ---------------- Net interest income 70,933 15,183 86,116 Provision for loans losses 7,541 450 7,991 -------------- ----------- ------------- ---------------- Net interest income after provision for loan losses 63,392 14,733 78,125 Other income 10,377 4,929 15,306 Operating expenses 46,490 11,006 57,496 -------------- ----------- ------------- ---------------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 27,279 8,656 35,935 Provision for income taxes 9,798 3,501 13,299 -------------- ----------- ------------- ---------------- Net income before merger and other related nonrecurring costs, net of tax 17,481 5,155 22,636 Merger and other related nonrecurring costs, net of tax (2,282) - (2,282) -------------- ----------- ------------- ---------------- Net income $ 15,199 $ 5,155 $ 20,354 ============== =========== ============= ================ Net income per share - basic (1) $ 1.30 $ 1.06 $ 1.36 ============== =========== ============= ================ Average common shares outstanding 12,252,000 4,853,000 (1,577,000) 15,528,000 ============== =========== ============= ================ Net income per share - diluted (1) $ 1.23 $ 1.05 $ 1.29 ============== =========== ============= ================ Average common and common equivalent shares outstanding 13,028,000 4,931,000 (1,603,000) 16,356,000 ============== =========== ============= ================
Historical Greater Bay & Historical Bank of Bank of Santa Bank of Santa Clara Adjustments (3) Clara Combined Petaluma ------------ --------------- -------------- ------------ Interest on loans $ 16,463 $ 107,601 $ 7,696 Interest on investment securities 3,953 15,981 3,019 Other interest income 306 10,598 77 ------------ -------------- -------------- ------------ Total interest income 20,722 134,180 10,792 Interest on deposits 5,909 44,890 3,681 Other interest expense - 3,544 567 ------------ -------------- -------------- ------------ Net interest income 14,813 85,746 6,544 Provision for loans losses 800 8,341 340 ------------ -------------- -------------- ------------ Net interest income after provision for loan losses 14,013 77,405 6,204 Other income 2,988 13,365 1,047 Operating expenses 12,019 58,509 5,049 ------------ -------------- -------------- ------------ Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 4,982 32,261 2,202 Provision for income taxes 1,618 11,416 726 ------------ -------------- -------------- ------------ Net income before merger and other related nonrecurring costs, net of tax 3,364 20,845 1,476 Merger and other related nonrecurring costs, net of tax - (2,282) - ------------ -------------- -------------- ------------ Net income $ 3,364 $ 18,563 $ 1,476 ============ ============== ============== ============ Net income per share - basic (1) $ 1.48 $ 1.36 $ 1.14 ============ ============== ============== ============ Average common shares outstanding 2,276,000 (296,000) 14,232,000 1,296,000 ============ ============== ============== ============ Net income per share - diluted (1) $ 1.45 $ 1.29 $ 1.06 ============ ============== ============== ============ Average common and common equivalent shares outstanding 2,321,000 (301,000) 15,048,000 1,393,000 ============ ============== ============== ============
Greater Bay, Historical Coast Coast Bancorp, Bancorp, Greater Bay Bank of Bank of Santa & Bank Santa Clara Clara & Bank of and Bank Bank of Petaluma of Petaluma Adjustments Petaluma Adjustments (3) Combined Combined (2, 3 & 4) Combined ---------------- -------------- -------------- -------------- -------------- Interest on loans $ 98,834 $ 38,673 $ 129,811 Interest on investment securities 15,047 12,024 24,052 Other interest income 10,369 1,627 11,919 -------------- -------------- -------------- -------------- ------------- Total interest income 124,250 52,324 165,782 Interest on deposits 42,662 13,706 52,687 Other interest expense 4,111 2,078 5,622 -------------- -------------- -------------- -------------- ------------- Net interest income 77,477 36,540 107,473 Provision for loans losses 7,881 1,590 9,131 -------------- -------------- -------------- -------------- ------------- Net interest income after provision for loan losses 69,596 34,950 98,342 Other income 11,424 8,964 19,341 Operating expenses 51,539 28,074 74,564 -------------- -------------- -------------- -------------- ------------- Income before provision for income taxes and merger and other related nonrecurring costs and extraordinary items 29,481 15,840 43,119 Provision for income taxes 10,524 5,845 15,643 -------------- -------------- -------------- -------------- ------------- Net income before merger and other related nonrecurring costs, net of tax 18,957 9,995 27,476 Merger and other related nonrecurring costs, net of tax (2,282) - (2,282) -------------- -------------- -------------- -------------- ------------- Net income $ 16,675 9,995 $ 25,194 ============== ============== ============== ============== ============= Net income per share - basic (1) $ 1.33 $ 1.19 $ 1.41 ============== ============== ============== ============== ============= Average common shares outstanding (408,000) 13,140,000 8,425,000 (2,281,000) 18,396,000 ============== ============== ============== ============== ============= Net income per share - diluted (1) $ 1.25 $ 1.16 $ 1.34 ============== ============== ============== ============== ============= Average common and common equivalent shares outstanding (439,000) 13,982,000 8,645,000 (2,343,000) 19,330,000 ============== ============== ============== ============== =============
(1) Before merger and other related nonrecurring costs and extraordinary items (2) Calculated as the historical Greater Bay weighted average shares plus the historical Coast Bancorp weighted average shares adjusted for the assumed conversion ratio of 0.675. (3) Calculated as the historical Greater Bay weighted average shares plus the historical Bank of Santa Clara weighted average shares adjusted for the assumed conversion ratio of 0.870. (4) Calculated as the historical Greater Bay weighted average shares plus the historical Bank of Petaluma weighted average shares adjusted for the assumed conversion ratio of 0.685. -----END PRIVACY-ENHANCED MESSAGE-----