Exhibit 99.1

For Information Contact
At Greater Bay Bancorp:	At Silverman Heller Associates:
Byron A. Scordelis, President and CEO	Philip Bourdillon/Gene Heller
(650) 838-6101	(310) 208-2550
James S. Westfall, EVP and CFO
(650) 838-6108

FOR IMMEDIATE RELEASE

GREATER BAY BANCORP REPORTS

NET INCOME OF $25.1 MILLION OR $0.46 PER SHARE

FOR THE SECOND QUARTER OF 2006

EAST PALO ALTO, Calif., August 4, 2006 – Greater Bay Bancorp (Nasdaq: GBBK), a $7.4 billion in assets financial services holding company, today announced results for the second quarter and six months ended June 30, 2006.

For the second quarter of 2006, the Company’s net income was $25.1 million, or $0.46 per diluted common share, compared to $22.7 million, or $0.38 per diluted common share, for the second quarter of 2005, and $25.9 million, or $0.46 per diluted common share, for the first quarter of 2006. For the first six months of 2006, net income was $51.0 million, or $0.91 per diluted common share, compared to $44.2 million, or $0.72 per diluted common share for the first six months of 2005.

For the second quarter of 2006, the Company’s return on average common equity, annualized, was 14.29% compared to 13.68% for the second quarter of 2005, and 15.42% for the first quarter of 2006. Return on average common equity, annualized, for the first six months of 2006 was 14.84% compared to 13.36% for the same period in 2005. Return on average assets, annualized, for the second quarter of 2006 was 1.41% compared to 1.28% for the second quarter of 2005, and 1.47% for the first quarter of 2006. Return on average assets, annualized, was 1.44% for the first six months of 2006 compared to 1.27% for the same period in 2005.

Operating results during the second quarter included the Company’s recognition of a $3.5 million fair value increase on its warrant portfolio primarily due to a single warrant position acquired in a prior period. This gain was partially offset by $2.0 million in expenses associated with acceleration of fixed asset depreciation, stock-based compensation expense related to prior period stock option grants, and costs incurred in conjunction with the Company’s planned outsourcing of its mainframe operations.

“We are pleased to report another quarter characterized by solid operating results,” stated Byron A. Scordelis, President and Chief Executive Officer of Greater Bay Bancorp. “We posted meaningful loan growth for the quarter in areas of previously indicated portfolio emphasis while sustaining the strength of our core credit quality metrics. Our specialty finance business continued its delivery of enviable results, and our commercial insurance brokerage business produced tangible results in key performance areas in spite of continued pressure on premium levels. While aggregate deposit totals declined, attrition of demand deposits abated and funding costs remained well controlled. And, of equal significance we maintained effective company wide expense discipline.” added Mr. Scordelis.

Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

Page 2 of 13

Net Interest Income

Net interest income for the second quarter of 2006 increased to $65.8 million from $65.4 million in the second quarter of 2005 primarily due to an increase of $125.7 million in the average loan portfolio balance.

Net interest income for the second quarter of 2006 decreased to $65.8 million from $66.6 million in the first quarter of 2006. This decrease was primarily due to a nine basis point decrease in the net interest margin.

Net interest income for the first half of 2006 increased to $132.5 million from $131.5 million for the same period of 2005. This was primarily due to an increase of $192.1 million in the average loan portfolio balance.

Non-Interest Income

Non-interest income for the second quarter of 2006 was $56.8 million compared to $54.2 million in the second quarter of 2005. This change was primarily attributable to:

• Increase in other income of $2.2 million primarily due to $3.5 million of warrant value gains as compared to $2.3 million in gains recorded in the second quarter of 2005 on CODES debt repurchases and purchased residential mortgage loan appreciation between price commitment and settlement dates, and

• Increase in insurance brokerage commissions and fees of $1.0 million, including $2.6 million related to Lucini / Parish which was acquired on May 1, 2005.

Non-interest income for the second quarter of 2006 was $56.8 million compared to $60.0 million in the first quarter of 2006. This reduction was primarily attributable to decreases in insurance commissions and fees of $4.7 million including seasonal override and contingent income, partially offset by increases in other income of $2.3 million that includes warrant portfolio appreciation.

Non-interest income in the first six months of 2006 increased to $116.8 million from $104.4 million in the first six months of 2005. This change was primarily attributable to:

• Increase in insurance brokerage commissions and fees of $7.9 million, including $9.4 million related to Lucini / Parish, and

• Increase in other income of $4.3 million including $4.0 million of warrant portfolio appreciation.

Non-interest income as a percentage of total revenues for the second quarter of 2006 was 46.3%, compared to 45.3% for the second quarter of 2005 and 47.4% for the first quarter of 2006. Non-interest income as a percentage of total revenues for the first six months of 2006 was 46.9%, compared to 44.3% for the same period one year ago.

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Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

Page 3 of 13

Operating Expenses

Operating expenses for the second quarter of 2006 increased to $84.5 million from $81.1 million in the second quarter of 2005. This expense growth was primarily attributable to the following:

• Inclusion of only two months of Lucini/Parish operations expense in 2005 – $2.2 million,

• Opening of new ABD offices in San Diego and Denver – $0.8 million,

• Stock-based compensation expense for prior period stock option grants – $0.4 million

• Costs related to outsourcing of the company’s mainframe operations – $0.7 million, and

• Acceleration of fixed asset depreciation – $0.8 million.

These items were partially offset by a decrease in other expense of $1.6 million.

During the second quarter, the Company conducted a self-initiated review of administrative and accounting practices associated with its granting of stock options. At the recommendation of management, the Audit Committee, with the assistance of independent advisors, conducted a comprehensive inquiry of these practices covering the period 1996-2005. The Audit Committee’s review identified no improprieties in the Company’s option granting practices. Nevertheless, the Company has determined that historical option granting practices, principally during the period 1996-2000, gave rise to a pre-tax expense of $0.4 million, which the Company recorded in the second quarter. The Company has concluded that this amount had no material impact on its previously filed or current financial statements.

Operating expenses for the second quarter of 2006 decreased to $84.5 million from $92.1 million in the first quarter of 2006. This expense reduction was primarily attributable to the following:

• Decrease in compensation expense of $6.4 million related to decreases in bonus expense of $3.3 million and normal seasonal decreases in payroll taxes and Company 401(k) matching contribution expense of $1.9 million, and

• Decrease in other expense of $2.1 million due primarily to the recognition during the first quarter of 2006 of $1.2 million in stock-based compensation related to accelerated vesting of restricted stock and $0.9 million in contributions to the Greater Bay Bancorp Foundation.

These decreases were partially offset by an increase in occupancy and equipment expense of $0.9 million, including $0.3 million related to our mainframe outsourcing initiative.

Operating expenses in the first six months of 2006 increased to $176.6 million from $165.1 million in the first half of 2005. This expense growth was primarily attributable to:

• Inclusion of only two months of Lucini/Parish operations expense in 2005 – $7.5 million,

• Opening of new ABD offices in San Diego and Denver in 2006 – $1.5 million,

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Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

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• Stock-based compensation in the first quarter of 2006 related to accelerated vesting of restricted stock – $1.1 million,

• Increased stock-based compensation reflecting adoption of FAS 123R – $0.9 million,

• Stock-based compensation expense for prior period stock option grants – $0.4 million,

• Mainframe outsourcing initiative – $0.7 million, and

• Accelerated fixed asset depreciation – $0.8 million.

These increases were partially offset by a $1.1 million decrease in severance expense.

Credit Quality Overview

Net loan charge-offs in the second quarter of 2006 were $2.7 million, or 0.23% of average loans, annualized, compared to $3.5 million, or 0.30% of average loans, for the second quarter of 2005 and $43,000, or less than 0.01% of average loans, for the first quarter of 2006. Net loan charge-offs in the first six months of 2006 were $2.7 million, or 0.12% of average loans, annualized, compared to $7.0 million or 0.31% for the same period in 2005.

Non-performing assets were $32.6 million at June 30, 2006, compared to $88.6 million at June 30, 2005 and $33.4 million at March 31, 2006. The ratio of non-performing assets to total assets was 0.44% at June 30, 2006, compared to 1.22% at June 30, 2005 and 0.47% at March 31, 2006. The ratio of non-accrual loans to total loans was 0.68% at June 30, 2006, compared to 1.86% at June 30, 2005 and 0.70% at March 31, 2006.

The Company recorded a negative provision for credit losses of $1.9 million for the second quarter of 2006, compared to a provision of $2.3 million for the second quarter of 2005, and a negative provision of $6.0 million for the first quarter of 2006. The provision for the first six months of 2006 was a negative $7.9 million, compared to $0.6 million for the first six months of 2005.

The allowance for loan and lease losses was $71.7 million, or 1.50% of total loans at June 30, 2006, compared to $98.5 million, or 2.07% of total loans, at June 30, 2005 and $74.6 million, or 1.57% of total loans, at March 31, 2006.

“We remain very pleased with the overall direction and level of our credit quality,” stated Mr. Scordelis. “Net losses continued to be well-controlled, and non-performing assets further declined to a base that is now more than 60% below the level of just one year ago. As a tangible reflection of our key credit metrics and the inherent quality of our portfolio, we recorded a modestly negative loan loss provision for the second quarter.”

Balance Sheet

At June 30, 2006, total assets were $7.4 billion, total net loans were $4.8 billion, total securities were $1.6 billion, and total deposits were $5.0 billion.

Total loans net of deferred fees and discounts increased by $34.1 million from June 30, 2005 to June 30, 2006. This growth reflects increases of $219.3 million in real estate construction and land loans, and $47.8 million in commercial loans. These increases were partially offset by a decrease of $153.1 million in the commercial term real estate loan portfolio and $60.0 million in real estate other.

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Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

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Total loans net of deferred fees and discounts increased by $44.9 million from March 31, 2006 to June 30, 2006, representing an annualized growth rate of 4.5%. This growth reflects an increase of $74.3 million in real estate construction and land loans and $25.9 in commercial loans, which was partially offset by a decrease of $48.9 million in the commercial term real estate portfolio. Results for the second quarter included $5.3 million in pay downs of previously purchased residential whole loans and a $23.2 million reclassification adjustment that reduced the carrying value of certain loans in the Company’s specialty finance business. Excluding this reclassification adjustment, core loans (which exclude purchased loans) grew by $73.5 million or an annualized rate of 6.6% when compared to as of March 31, 2006.

“The increase in our core loan totals was concentrated in the areas of commercial and construction lending which we had previously cited as being areas of particular emphasis,” commented Mr. Scordelis. “Annualized growth in construction loan outstandings during the quarter was 43.3%, and, exclusive of the carrying value adjustment, our specialty finance business grew by $84.4 million or an annualized growth rate of 22.6% for the quarter.”

Securities totaled $1.6 billion as of June 30, 2006, compared to $1.6 billion at June 30, 2005 and $1.5 billion at March 31, 2006.

Core deposits (excluding institutional and brokered deposits) at June 30, 2006 decreased by $301.9 million compared to June 30, 2005 and decreased by $219.9 million compared to March 31, 2006.

“We noted a stabilization in demand deposit levels throughout the quarter which contrasted favorably to the decline experienced in the prior period,” commented Mr. Scordelis. “Roughly one-half of the decline in interest-bearing deposits occurred in our specialty account area which is principally comprised of title, exchange, venture capital and other large balance relationships. These accounts are characterized by above average deposit costs – and their decline reflects a continuation of a trend that has persisted for the past several quarters. The balance of our deposit attrition occurred in more traditional interest-bearing money market account categories. We continue to be mindful of the trade-off between achieving growth in our deposit base and the marginal funding cost required to do so when viewed in the context of alternative funding sources,” added Mr. Scordelis.

Capital Overview

The capital ratios of Greater Bay Bancorp and its subsidiary bank continue to exceed minimum well-capitalized guidelines established by bank regulatory agencies.

The Company’s common equity to assets ratio was 9.66% at June 30, 2006, compared to 9.19% at June 30, 2005 and 9.71% at March 31, 2006. The Company’s tangible common equity to tangible assets ratio was 5.96% at June 30, 2006, compared to 5.42% at June 30, 2005 and 5.86% at March 31, 2006.

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Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

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Net Interest Margin and Interest Rate Risk Management

The net interest margin (on a fully tax equivalent basis) for the second quarter of 2006 was 4.26%, compared to 4.27% for the second quarter of 2005 and 4.35% for the first quarter of 2006. The net interest margin (on a fully tax equivalent basis) for the first six months of 2006 was 4.31% compared to 4.35% for the same period in 2005.

“Nine basis points of the linked quarter margin decline is attributable to the effect of core deposit outflows, partially offset by continued pricing restraint,” stated James S. Westfall, chief financial officer. “Additionally, the full quarter effect of refinancing the Company’s 0.5% CODES debt, retired in March 2006, at prevailing market rates further compressed the margin by five basis points. Buffering these margin pressures was a $0.8 million increase in recognized deferred loan interest and fees triggered by loan payoffs that contributed five basis points.”

Outlook for 2006

Our full year guidance for 2006 is as follows:

• Core Loan Growth – based on the current forecast of moderate economic growth in our primary market area coupled with a planned increase in our lending and relationship management staff, we anticipate core loan portfolio growth in the mid to high single digit range, with this growth concentrated in the second half of the year.

• Core Deposit Growth – we do not currently contemplate a near-term recovery of the core deposit outflow experienced in the first half of 2006, and now expect core deposit totals to remain flat for the balance of the year relative to the quarter end balance as of June 30, 2006. We intend to continue our reliance on institutional and other non-relationship funding sources to fulfill our funding needs.

• Credit Quality – based on our continued aggressive credit risk management and the current economic outlook, we anticipate net charge-offs from 15 basis points to 25 basis points of average loans outstanding.

• Net Interest Margin – based on the Company’s anticipated core loan and deposit growth and its slightly net asset interest rate sensitivity position, we expect the margin to fluctuate in the 4.20% to 4.30% range.

Conference Call

The Company will broadcast its earnings conference call live via the Internet at 8:00 a.m. (PDT) on Friday, August 4, 2006. Participants may access this conference call through the Company’s website at http://www.gbbk.com, under the “Investor Info” link, or through http://www.earnings.com. You should go to either of these websites 15 minutes prior to the start of the call, as it may be necessary to download audio software to hear the conference call.

A replay of the conference call will be available on the websites. A telephone replay will also be available beginning at 11:00 a.m. PDT on August 4 through 9 p.m. PDT on August 11, 2006, by dialing 800-642-1687 or 706-645-9291 and providing Conference ID 4124519.

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Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

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About Greater Bay Bancorp

Greater Bay Bancorp, a diversified financial services holding company, provides community banking services in the Greater San Francisco Bay Area through Greater Bay Bank, N.A.’s community banking organization, including Bank of Petaluma, Bank of Santa Clara, Bay Area Bank, Bay Bank of Commerce, Coast Commercial Bank, Cupertino National Bank, Golden Gate Bank, Mid-Peninsula Bank, Mt. Diablo National Bank, Peninsula Bank of Commerce and San Jose National Bank. Nationally, Greater Bay Bancorp provides specialized leasing and loan services through its specialty finance group, which includes Matsco, CAPCO and Greater Bay Capital. ABD Insurance and Financial Services, the Company’s insurance brokerage subsidiary, provides commercial insurance brokerage, employee benefits consulting and risk management solutions to business clients throughout the United States.

Safe Harbor

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to the Company’s current expectations regarding future operating results, net interest margin, net loan charge-offs, asset quality, level of loan loss reserves, growth in loans and deposits and the strength of the local economy. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions at the local, national and international levels and increased competition among financial service providers on the Company’s results of operations and the quality of the Company’s earning assets; (2) government regulation, including ABD’s receipt of requests for information from state insurance commissioners and subpoenas from state attorneys general related to the ongoing insurance industry-wide investigations into contingent commissions and override payments; and (3) the other risks set forth in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2005. Greater Bay 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 additional information and press releases about Greater Bay Bancorp, visit the Company’s website at http://www.gbbk.com.

-Financial Tables Follow-

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Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

Page 8 of 13

GREATER BAY BANCORP

June 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)

(Dollars and shares in 000’s, except per share data)

SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
	Second Quarter 2006			First Quarter 2006			Fourth Quarter 2005			Third Quarter 2005			Second Quarter 2005
Interest income	$	108,321		$	103,754		$	102,225		$	100,710		$	96,050
Interest expense		42,487			37,134			34,478			32,714			30,625
Net interest income before (recovery of) / provision for credit losses		65,834			66,620			67,747			67,996			65,425
(Recovery of) / provision for credit losses		(1,886	)		(6,004	)		(10,491	)		(3,352	)		2,252
Net interest income after (recovery of) / provision for credit losses		67,720			72,624			78,238			71,348			63,173
Non-interest income:
Insurance commissions and fees		40,235			44,969			37,071			39,974			39,223
Rental revenue on operating leases		4,790			5,264			4,906			4,901			4,463
Service charges and other fees		2,368			2,540			2,533			2,496			2,869
Loan and international banking fees		1,718			1,795			1,919			1,663			2,113
Income on bank owned life insurance		1,922			1,911			1,869			1,877			2,004
Trust fees		1,127			1,055			1,101			1,074			1,060
Gains on sale of loans		—			—			172			100			111
Security gains, net		5			168			—			43			9
Other income		4,605			2,331			3,438			2,361			2,389
Total non-interest income		56,770			60,033			53,009			54,489			54,241
Operating expenses:
Compensation and benefits		51,500			57,929			51,455			50,745			48,172
Occupancy and equipment		12,241			11,322			11,285			11,278			11,148
Legal costs and other professional fees		3,884			3,753			5,295			4,671			3,198
Depreciation - operating leases		3,917			4,091			4,013			4,108			3,735
Amortization of intangibles		1,689			1,640			1,835			1,886			2,072
Other expenses		11,255			13,379			12,476			11,936			12,805
Total operating expenses		84,486			92,114			86,359			84,624			81,130
Income before provision for income taxes and cumulative effect of accounting change		40,004			40,543			44,888			41,213			36,284
Provision for income taxes		14,886			14,772			17,433			15,626			13,609
Income before cumulative effect of accounting change		25,118			25,771			27,455			25,587			22,675
Cumulative effect of accounting change, net of tax (1)		—			130			—			—			—
Net income	$	25,118		$	25,901		$	27,455		$	25,587		$	22,675
EARNINGS PER SHARE DATA:
Net Income per common share before cumulative effect of accounting change (2)
Basic	$	0.46		$	0.48		$	0.51		$	0.47		$	0.41
Diluted	$	0.46		$	0.46		$	0.48		$	0.44		$	0.38
Net Income per common share after cumulative effect of accounting change (2)
Basic	$	0.46		$	0.48		$	0.51		$	0.47		$	0.41
Diluted	$	0.46		$	0.46		$	0.48		$	0.44		$	0.38
Weighted average common shares outstanding		50,188			49,802			50,251			50,698			50,843
Weighted average common & potential common shares outstanding		51,173			52,727			53,370			54,010			55,573
GAAP ratios
Return on quarterly average assets, annualized		1.41	%		1.47	%		1.53	%		1.41	%		1.28	%
Return on quarterly average common shareholders’ equity, annualized		14.29	%		15.42	%		16.25	%		15.13	%		13.68	%
Return on quarterly average total equity, annualized		12.47	%		13.39	%		14.09	%		13.12	%		11.84	%
Net interest margin, annualized (3)		4.26	%		4.35	%		4.36	%		4.32	%		4.27	%
Operating expense ratio, annualized (4)		4.75	%		5.24	%		4.81	%		4.67	%		4.60	%
Efficiency ratio (5)		68.91	%		72.73	%		71.52	%		69.09	%		67.80	%
NON-GAAP ratios
Efficiency ratio (excluding ABD & other ABD expenses paid by holding company) (6)		59.53	%		67.76	%		62.31	%		59.50	%		60.16	%

(1) Effective January 1, 2006, the Company adopted SFAS No.123 (revised 2004), Share-Based Payment (“SFAS 123R”), as a result of which the Company recognized a one-time cumulative adjustment, to record an estimate of future forfeitures on outstanding equity based awards for which compensation expense had been recognized prior to adoption.

(2) The following table provides a reconciliation of income available to common shareholders before and after cumulative effect of accounting change. Additionally, the Company’s outstanding convertible preferred stock was antidilutive for all periods presented.

Income before cumulative effect of accounting change as reported	$	25,118		$	25,771		$	27,455		$	25,587		$	22,675
Less: dividends on convertible preferred stock		(1,822	)		(1,832	)		(1,825	)		(1,834	)		(1,841	)
Income available to common shareholders before cumulative effect of accounting change		23,296			23,939			25,630			23,753			20,834
Add: CODES interest and other related income/(loss), net of taxes		—			59			(99	)		76			111
Income available to common shareholders before cumulative effect of accounting change		23,296			23,998			25,531			23,829			20,945
Cumulative effect of accounting change, net of tax		—			130			—			—			—
Income available to common shareholders after cumulative effect of accounting change	$	23,296		$	24,128		$	25,531		$	23,829		$	20,945
Weighted average common shares outstanding		50,188			49,802			50,251			50,698			50,843
Weighted average potential common shares:
Stock options		985			946			939			878			1,062
CODES due 2024		—			1,979			2,180			2,426			3,653
CODES due 2022		—			—			—			8			15
Total weighted average common & potential common shares outstanding		51,173			52,727			53,370			54,010			55,573

(3) Net interest income (on a tax equiivalent basis) for the period, annualized and divided by average quarterly interest earning assets for the period.

(4) Total operating expenses for the period, annualized and divided by average quarterly assets.

(5) Total operating expenses divided by total revenue (the sum of net interest income and non-interest income, excluding provision for credit losses).

(6) Total operating expenses less ABD operating expenses divided by total revenue less ABD revenue. The following table provides the information for calculating the efficiency ratio excluding ABD:

Revenue (excluding ABD)	$	82,180	$	81,183	$	83,614	$	81,796	$	80,190
Operating expenses (excluding ABD & other ABD expenses paid by holding company)	$	48,922	$	55,010	$	52,102	$	48,667	$	48,243

Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

Page 9 of 13

GREATER BAY BANCORP

June 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)

(Dollars and shares in 000’s, except per share data)

SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
	Six Months Ended June 30,
	2006			2005
Interest income	$	212,075		$	187,848
Interest expense		79,621			56,381
Net interest income before (recovery of) / provision for credit losses		132,454			131,467
(Recovery of) / provision for credit losses		(7,890	)		574
Net interest income after (recovery of) / provision for credit losses		140,344			130,893
Non-interest income:
Insurance commissions and fees		85,204			77,345
Rental revenue on operating leases		10,054			8,495
Service charges and other fees		4,908			5,419
Loan and international banking fees		3,513			4,126
Income on bank owned life insurance		3,833			3,801
Trust fees		2,182			2,126
Gains on sale of loans		—			206
Security gains, net		173			299
Other income		6,936			2,617
Total non-interest income		116,803			104,434
Operating expenses:
Compensation and benefits		109,429			98,457
Occupancy and equipment		23,563			21,560
Legal costs and other professional fees		7,637			8,049
Depreciation - operating leases		8,008			7,105
Amortization of intangibles		3,329			4,155
Other expenses		24,634			25,752
Total operating expenses		176,600			165,078
Income before provision for income taxes and cumulative effect of accounting change		80,547			70,249
Provision for income taxes		29,658			26,064
Income before cumulative effect of accounting change		50,889			44,185
Cumulative effect of accounting change, net of tax (1)		130			—
Net income	$	51,019		$	44,185
EARNINGS PER SHARE DATA:
Net Income per common share before cumulative effect of accounting change (2)
Basic	$	0.94		$	0.79
Diluted	$	0.91		$	0.72
Net Income per common share after cumulative effect of accounting change (2)
Basic	$	0.95		$	0.79
Diluted	$	0.91		$	0.72
Weighted average common shares outstanding		49,997			50,988
Weighted average common & potential common shares outstanding		51,860			56,842
GAAP ratios
Return on YTD average assets, annualized		1.44	%		1.27	%
Return on YTD common shareholders’ equity, annualized		14.84	%		13.36	%
Return on YTD average total equity, annualized		12.92	%		11.56	%
Net interest margin, annualized (3)		4.31	%		4.35	%
Operating expense ratio, annualized (4)		4.99	%		4.74	%
Efficiency ratio (5)		70.85	%		69.98	%
NON-GAAP ratios
Efficiency Ratio (excluding ABD & other ABD expenses paid by holding company) (6)		63.62	%		64.10	%

(1) Effective January 1, 2006, the Company adopted SFAS No.123 (revised 2004), Share-Based Payment (“SFAS 123R”), as a result of which the Company recognized a one-time which the Company recognized a one-time cumulative adjustment, to record an estimate of future forfeitures on outstanding equity based awards for which compensation expense had been recognized prior to adoption.

(2) The following table provides a reconciliation of income available to common shareholders before and after cumulative effect of accounting change. Additionally, the Company’s outstanding convertible preferred stock was antidilutive for all periods presented.

Income before cumulative effect of accounting change as reported	$	50,889		$	44,185
Less: dividends on convertible preferred stock		(3,654	)		(3,681	)
Net Income available to common shareholders before cumulative effect of accounting change		47,235			40,504
Add: CODES interest and other related income/(loss), net of taxes		59			290
Income available to common shareholders before cumulative effect of accounting change		47,294			40,794
Cumulative effect of accounting change, net of tax		130			—
Income available to common shareholders after cumulative effect of accounting change	$	47,424		$	40,794
Weighted average common shares outstanding		49,997			50,988
Weighted average potential common shares:
Stock options		879			1,049
CODES due 2024		984			4,790
CODES due 2022		—			15
Total weighted average common & potential common shares outstanding		51,860			56,842

(3) Net interest income (on a tax equiivalent basis) for the period, annualized and divided by average quarterly interest earning assets for the period.

(4) Total operating expenses for the period, annualized and divided by average quarterly assets.

(5) Total operating expenses divided by total revenue (the sum of net interest income and non-interest income, excluding provision for credit losses).

(6) Total operating expenses less ABD operating expenses divided by total revenue less ABD revenue. The following table provides the information for calculating the efficiency ratio excluding ABD:

Revenue (Excluding ABD)	$	163,363	$	157,935
Operating Expenses (Excluding ABD & other ABD expenses paid by holding company)	$	103,932	$	101,238

Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

Page 10 of 13

GREATER BAY BANCORP

June 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)

(Dollars in 000’s)

SELECTED CONSOLIDATED FINANCIAL CONDITION DATA AND RATIOS:
	Jun 30 2006			Mar 31 2006			Dec 31 2005			Sep 30 2005			Jun 30 2005
Cash and cash equivalents	$	198,716		$	167,203		$	152,153		$	153,284		$	190,048
Fed funds sold		36,000			—			—			20,000			10,000
Securities		1,565,732			1,468,123			1,493,584			1,487,935			1,583,662
Loans:
Commercial		2,088,082			2,062,141			2,067,873			2,020,656			2,040,289
Term real estate - commercial		1,340,762			1,389,635			1,389,329			1,432,939			1,493,890
Total commercial		3,428,844			3,451,776			3,457,202			3,453,595			3,534,179
Real estate construction and land		762,409			688,086			644,883			609,969			543,117
Residential mortgage		275,332			271,658			266,263			258,268			260,453
Real estate other		217,889			230,190			263,164			261,969			277,847
Consumer and other		101,370			100,020			108,833			115,593			137,827
Deferred fees and discounts, net		(11,231	)		(12,006	)		(12,376	)		(12,681	)		(12,939	)
Total loans, net of deferred fees and discounts		4,774,613			4,729,724			4,727,969			4,686,713			4,740,484
Allowance for loan and lease losses		(71,689	)		(74,568	)		(82,159	)		(92,857	)		(98,487	)
Total loans, net		4,702,924			4,655,156			4,645,810			4,593,856			4,641,997
Goodwill		243,343			242,728			243,289			236,511			236,211
Other intangible assets		46,227			48,005			49,741			51,739			53,785
Other assets		576,712			527,291			536,392			529,983			550,402
Total assets	$	7,369,654		$	7,108,506		$	7,120,969		$	7,073,308		$	7,266,105
Deposits:
Demand, noninterest-bearing	$	1,015,734		$	1,004,575		$	1,093,157		$	1,066,536		$	1,091,208
MMDA, NOW and savings		2,734,656			2,957,354			3,000,647			3,003,159			2,955,343
Time deposits, $100,000 and over		776,712			782,891			741,682			750,406			696,740
Other time deposits		495,131			363,941			223,053			195,315			136,008
Total deposits		5,022,233			5,108,761			5,058,539			5,015,416			4,879,299
Other borrowings		970,390			750,248			797,802			813,006			1,117,285
Subordinated debt		287,631			210,311			210,311			210,311			210,311
Other liabilities		261,907			232,866			265,607			252,510			275,417
Total liabilities		6,542,161			6,302,186			6,332,259			6,291,243			6,482,312
Minority interest:
Peferred stock of real estate investment trust subsidiaries		12,780			12,739			12,699			12,658			12,617
Convertible preferred stock		103,096			103,097			103,387			102,706			103,366
Common shareholders’ equity		711,617			690,484			672,624			666,701			667,810
Total equity		814,713			793,581			776,011			769,407			771,176
Total liabilities and total equity	$	7,369,654		$	7,108,506		$	7,120,969		$	7,073,308		$	7,266,105
RATIOS:
Loan growth, current quarter to prior year quarter		0.72	%		4.93	%		5.34	%		4.31	%		6.40	%
Loan growth, current quarter to prior quarter, annualized		3.81	%		0.15	%		3.49	%		-4.50	%		20.74	%
Loan growth, YTD		1.99	%		0.15	%		5.34	%		5.91	%		11.33	%
Core loan growth, current quarter to prior year quarter (1)		1.32	%		1.39	%		0.57	%		-1.13	%		0.75	%
Core loan growth, current quarter to prior quarter, annualized (1)		4.47	%		0.66	%		4.30	%		-4.09	%		4.73	%
Core loan growth, YTD (1)		2.58	%		0.66	%		0.57	%		-0.68	%		1.06	%
Deposit growth, current quarter to prior year quarter		2.93	%		2.26	%		-0.87	%		-3.47	%		-8.06	%
Deposit growth, current quarter to prior quarter, annualized		-6.79	%		4.03	%		3.41	%		11.07	%		-9.35	%
Deposit growth, YTD		-1.45	%		4.03	%		-0.87	%		-2.29	%		-8.83	%
Core deposit growth, current quarter to prior year quarter (2)		-6.63	%		-5.78	%		-5.03	%		-6.45	%		-9.21	%
Core deposit growth, current quarter to prior quarter, annualized (2)		-19.72	%		-8.31	%		-1.02	%		2.02	%		-16.23	%
Core deposit growth, YTD (2)		-13.84	%		-8.31	%		-5.03	%		-6.40	%		-10.63	%
Revenue growth, current quarter to prior year quarter (3)		2.46	%		8.96	%		7.03	%		3.77	%		0.98	%
Revenue growth, current quarter to prior quarter, annualized (3)		-12.82	%		19.80	%		-5.60	%		9.35	%		11.84	%
Net interest income growth, current quarter to prior year quarter		0.63	%		0.88	%		-0.52	%		-3.23	%		-8.98	%
Net interest income growth, current quarter to prior quarter, annualized		-4.73	%		-6.75	%		-1.45	%		15.59	%		-3.75	%

(1) Core loans calculated as total loans less purchased residential mortgage loans.

(2) Core deposits calculated as total deposits less institutional and brokered time deposits.

(3) Revenue is the sum of net interest income before (recovery of) / provision for credit losses and total non-interest income.

Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

Page 11 of 13

GREATER BAY BANCORP

June 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)

(Dollars in 000’s)

SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:

	Three months ended
	June 30, 2006							March 31, 2006							June 30, 2005
Tax-Equivalent Basis (1)	Average balance (2)		Interest			Average yield / rate		Average balance (2)		Interest			Average yield / rate		Average balance (2)		Interest			Average yield / rate
INTEREST-EARNING ASSETS:
Fed funds sold	$	10,791	$	128		4.77	%	$	12,290	$	132		4.34	%	$	32,893	$	220		2.68	%
Securities:
Taxable		1,433,756		16,030		4.48	%		1,425,340		15,622		4.45	%		1,495,651		16,000		4.29	%
Tax-exempt (1)		86,323		1,543		7.16	%		82,596		1,494		7.33	%		84,555		1,557		7.38	%
Other short-term (3)		9,348		46		1.99	%		9,762		35		1.46	%		6,414		28		1.75	%
Loans (4)		4,705,859		91,074		7.76	%		4,721,031		86,959		7.47	%		4,580,165		78,760		6.90	%
Total interest-earning assets		6,246,077		108,821		6.99	%		6,251,019		104,242		6.76	%		6,199,678		96,565		6.25	%
Noninterest-earning assets		888,886		—					878,637		—					880,559		—
Total assets	$	7,134,963		108,821				$	7,129,656		104,242				$	7,080,237		96,565
INTEREST-BEARING LIABILITIES:
Deposits:
MMDA, NOW and Savings	$	2,807,337		15,094		2.16	%	$	2,950,240		14,072		1.93	%	$	3,112,247		13,297		1.71	%
Time deposits over $100,000		780,415		8,466		4.35	%		756,259		7,321		3.93	%		662,925		4,424		2.68	%
Other time deposits		414,765		4,381		4.24	%		260,812		2,368		3.68	%		136,573		781		2.29	%
Total interest-bearing deposits		4,002,517		27,941		2.80	%		3,967,311		23,761		2.43	%		3,911,745		18,502		1.90	%
Short-term borrowings		262,439		2,947		4.50	%		288,491		2,983		4.19	%		413,096		3,625		3.52	%
CODES		—		—		0.00	%		75,101		101		0.55	%		144,225		192		0.53	%
Subordinated debt		224,755		4,867		8.68	%		210,311		4,557		8.79	%		210,311		4,377		8.35	%
Other long-term borrowings		547,494		6,732		4.93	%		474,316		5,732		4.90	%		299,061		3,929		5.27	%
Total interest-bearing liabilities		5,037,205		42,487		3.38	%		5,015,530		37,134		3.00	%		4,978,438		30,625		2.47	%
Noninterest-bearing deposits		1,013,577							1,041,806							1,083,982
Other noninterest-bearing liabilities		263,424							275,257							237,041
Minority Interest: Preferred stock of real estate investment trust subsidiaries		12,756							12,715							12,593
Shareholders’ equity		808,001							784,348							768,183
Total shareholders’ equity and liabilities	$	7,134,963		42,487				$	7,129,656		37,134				$	7,080,237		30,625
Net interest income, on a tax-equivalent basis (1)				66,335							67,108							65,940
Net interest margin (5)						4.26	%						4.35	%						4.27	%
Reconciliation to reported net interest income:
Adjustment for tax equivalent basis				(500	)						(488	)						(515	)
Net interest income, as reported			$	65,834						$	66,620						$	65,425

(1) Income from tax-exempt securities issued by state and local governments or authorities, is adjusted by an increment that equates tax-exempt income to tax equivalent basis (assuming a 35% federal income tax rate).

(2) Nonaccrual loans are included in the average balance.

(3) Includes average interest-earning deposits in other financial institutions.

(4) Amortization of deferred loan fees, net of the amortization of deferred costs, resulted in an increase (decrease) of interest income on loans by $602,000, $245,000, and ($1,000) for the three months ended June 30, 2006, March 31, 2006 and June 30, 2005, respectively.

(5) Net interest margin during the period equals (a) the difference between tax-equivalent interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (b) average interest-earning assets for the period, annualized.

Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

Page 12 of 13

GREATER BAY BANCORP

June 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)

(Dollars in 000’s)

SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:

	YTD
	June 30, 2006							June 30, 2005
Tax-Equivalent Basis (1)	Average balance (2)		Interest			Average yield / rate		Average balance (2)		Interest			Average yield / rate
INTEREST-EARNING ASSETS:
Fed funds sold	$	11,533	$	260		4.55	%	$	35,058	$	405		2.33	%
Securities:
Taxable		1,429,572		31,653		4.47	%		1,497,815		32,060		4.32	%
Tax-exempt (1)		84,470		3,035		7.24	%		84,391		2,960		7.07	%
Other short-term (3)		9,554		81		1.72	%		5,110		52		2.05	%
Loans (4)		4,713,403		178,033		7.62	%		4,521,309		153,352		6.84	%
Total interest-earning assets		6,248,532		213,062		6.88	%		6,143,683		188,829		6.20	%
Noninterest-earning assets		883,785		—					880,071		—
Total assets	$	7,132,317		213,062				$	7,023,754		188,829
INTEREST-BEARING LIABILITIES:
Deposits:
MMDA, NOW and Savings	$	2,878,394		29,165		2.04	%	$	3,194,323		26,554		1.68	%
Time deposits over $100,000		768,401		15,789		4.14	%		628,095		7,612		2.44	%
Other time deposits		338,214		6,748		4.02	%		136,792		1,454		2.14	%
Total interest-bearing deposits		3,985,009		51,702		2.62	%		3,959,210		35,620		1.81	%
Short-term borrowings		275,389		5,930		4.34	%		334,365		5,580		3.37	%
CODES		37,343		101		0.55	%		185,549		509		0.55	%
Subordinated debt		217,573		9,424		8.73	%		210,311		8,689		8.33	%
Other long-term borrowings		511,107		12,464		4.92	%		227,917		5,983		5.29	%
Total interest-bearing liabilities		5,026,421		79,621		3.19	%		4,917,352		56,381		2.31	%
Noninterest-bearing deposits		1,027,613							1,067,752
Other noninterest-bearing liabilities		269,309							255,286
Minority Interest: Preferred stock of real estate investment trust subsidiaries		12,735							12,582
Shareholders’ equity		796,239							770,782
Total shareholders’ equity and liabilities	$	7,132,317		79,621				$	7,023,754		56,381
Net interest income, on a tax-equivalent basis (1)				133,441							132,448
Net interest margin (5)						4.31	%						4.35	%
Reconciliation to reported net interest income:
Adjustment for tax equivalent basis				(987	)						(981	)
Net interest income, as reported			$	132,454						$	131,467

(1) Income from tax-exempt securities issued by state and local governments or authorities, is adjusted by an increment that equates tax-exempt income to tax equivalent basis (assuming a 35% federal income tax rate).

(2) Nonaccrual loans are included in the average balance.

(3) Includes average interest-earning deposits in other financial institutions.

(4) Amortization of deferred loan fees, net of the amortization of deferred costs, resulted in an increase (decrease) of interest income on loans by $847,000 and ($3,000) for the six months ended June 30, 2006 and June 30, 2005, respectively.

(5) Net interest margin during the period equals (a) the difference between tax-equivalent interest income on interest-earning assets and the interest expense on interest- bearing liabilities, divided by (b) average interest-earning assets for the period, annualized.

Greater Bay Bancorp Reports Second Quarter 2006 Results

August 4, 2006

Page 13 of 13

GREATER BAY BANCORP

June 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)

(Dollars and shares in 000’s, except per share data)

SELECTED CONSOLIDATED CREDIT QUALITY DATA:
	Jun 30 2006			Mar 31 2006			Dec 31 2005			Sept 30 2005			Jun 30 2005
Nonperforming assets (1)
Commercial:
Matsco/GBC	$	7,257		$	8,011		$	8,883		$	9,299		$	7,509
SBA		4,536			3,627			6,497			7,612			7,421
Other		4,775			9,184			9,142			7,578			7,646
Total commercial		16,568			20,822			24,522			24,489			22,576
Real estate:
Commercial		14,763			8,203			8,434			9,844			13,015
Construction and land		323			3,242			323			—			10,608
Other		3			7			33,312			33,777			33,781
Total real estate		15,089			11,452			42,069			43,621			57,404
Consumer and other		611			718			4,503			3,821			8,106
Total nonaccrual loans		32,268			32,992			71,094			71,931			88,086
OREO		—			—			—			—			—
Other nonperforming assets		361			438			631			1,153			495
Total nonperforming assets (1)	$	32,629		$	33,430		$	71,725		$	73,084		$	88,581
Net loan charge-offs (recoveries) (2)	$	2,662		$	43		$	1,207		$	3,098		$	3,476
Ratio of allowance for loan and lease losses to:
End of period loans		1.50	%		1.57	%		1.73	%		1.98	%		2.07	%
Total nonaccrual loans		222.17	%		226.02	%		115.56	%		129.09	%		111.81	%
Ratio of (recovery of ) / provision for credit losses to average loans, annualized		-0.16	%		-0.52	%		-0.89	%		-0.28	%		0.20	%
Total nonaccrual loans to total loans		0.68	%		0.70	%		1.50	%		1.53	%		1.86	%
Total nonperforming assets to total assets		0.44	%		0.47	%		1.01	%		1.03	%		1.22	%
Ratio of quarterly net loan charge-offs to average loans, annualized		0.23	%		0.00	%		0.10	%		0.26	%		0.30	%
Ratio of YTD net loan charge-offs to YTD average loans		0.12	%		0.00	%		0.24	%		0.29	%		0.31	%

(1) Nonperforming assets include nonaccrual loans, other real estate owned and other nonperforming assets.

(2) Net loan charge-offs are loan charge-offs net of recoveries.

SELECTED QUARTERLY CAPITAL RATIOS AND DATA:
	Jun 30 2006			Mar 31 2006			Dec 31 2005			Sept 30 2005			Jun 30 2005
Tier 1 leverage ratio		12.07	%		10.77	%		10.41	%		10.23	%		10.30	%
Tier 1 risk-based capital ratio		13.49	%		12.48	%		12.01	%		12.25	%		11.96	%
Total risk-based capital ratio		14.93	%		13.73	%		13.26	%		13.51	%		13.22	%
Total equity to assets ratio		11.05	%		11.16	%		10.90	%		10.88	%		10.61	%
Common equity to assets ratio		9.66	%		9.71	%		9.45	%		9.43	%		9.19	%
Tier I capital	$	824,154		$	734,692		$	708,563		$	702,030		$	695,108
Total risk-based capital	$	911,802		$	808,436		$	782,525		$	774,044		$	768,187
Risk weighted assets	$	6,108,101		$	5,889,032		$	5,900,425		$	5,730,710		$	5,810,227
NON-GAAP RATIOS (1):
Tangible common equity to tangible assets - end of period (2)		5.96	%		5.86	%		5.56	%		5.58	%		5.42	%
Tangible common book value per common share - end of period (3)	$	8.29		$	7.95		$	7.61		$	7.51		$	7.44
Common book value per common share - end of period (4)	$	13.98		$	13.73		$	13.48		$	13.22		$	13.16
Total common shares outstanding - end of period		50,917			50,288			49,906			50,425			50,756

(1) The following table provides a reconciliation of common equity to tangible common equity and total assets to tangible assets:

Common shareholders’ equity	$	711,617		$	690,484		$	672,624		$	666,701		$	667,810
Less: goodwill and other Intangible assets		(289,570	)		(290,733	)		(293,030	)		(288,250	)		(289,996	)
Tangible common equity	$	422,047		$	399,751		$	379,594		$	378,451		$	377,814
Total assets	$	7,369,654		$	7,108,506		$	7,120,969		$	7,073,308		$	7,266,105
Less: goodwill and other intangible assets		(289,570	)		(290,733	)		(293,030	)		(288,250	)		(289,996	)
Tangible assets	$	7,080,084		$	6,817,773		$	6,827,939		$	6,785,058		$	6,976,109

(2) Computed as common shareholders’ equity, less goodwill and other intangible assets divided by tangible assets.

(3) Computed as common shareholders’ equity, less goodwill and other intangible assets divided by total common shares outstanding - end of period.

(4) Computed as common shareholders’ equity divided by common shares outstanding - end of period.