EX-99.1 2 dex991.htm SLIDE PRESENTATION OF GREATER BAY BANCORP AS OF JUNE 30, 2006 Slide presentation of Greater Bay Bancorp as of June 30, 2006

Exhibit 99.1

Slide Presentation of Greater Bay Bancorp as of June 30, 2006

1
Greater Bay Bancorp
Greater Bay Bancorp
Investor Presentation
Investor Presentation
September 2006
September 2006

2
Greater Bay Bancorp
Greater Bay Bancorp
Certain
matters
discussed
in
this
presentation
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.

3
Company Profile
Company Profile
As of June 30, 2006
As of June 30, 2006
$4.5 billion
Core Loans
(1)
1.41% / 14.3%
Q2 ROA / ROCE
$1.5 billion
Market Capitalization
(3)
$712 million
Common Equity
50.9 million
Common Shares Outstanding
$0.46
Q2 Diluted EPS
$25.1 million
Q2 Net Income
$4.3 billion
Core Deposits
(2)
$7.4 billion
Total Assets
(1)
Excludes purchased whole loans
(2)
Excludes brokered and wholesale institutional deposits
(3)
As of August 15, 2006

4
Investment Rationale
Investment Rationale
•
Largest independent banking franchise in Northern
California operating in lucrative San Francisco Bay Area
regional market.
•
Proven record of organic growth.
•
Established track record as acquirer of choice.
•
Diversified provider of financial services in three distinct
business areas.
•
Mitigates geographic and sector-specific
concentrations.
•
Balanced spread and fee revenue mix.

5
Investment Rationale
Investment Rationale
•
Strong financial fundamentals and sound credit metrics.
•
Experienced and proven executive management team.
•
Leading to long-term record of superior shareholder
return.

6
An Exceptional Regional Market
An Exceptional Regional Market

7
Greater San Francisco Bay Area
Greater San Francisco Bay Area

8
Greater San Francisco Bay Area Profile
Greater San Francisco Bay Area Profile
•
Recognized
global
leadership
in
technological
innovation,
advancement,
and
growth.
•
Unmatched
concentration
of
venture
capital
funding
and
investment.
•
Entrepreneurial
spirit
and
results-oriented
ethic.
•
Highest
levels
of
worker
productivity
and
per
capita
income
in
the
nation.
•
Highest
level
of
workforce
education
in
the
nation.
•
Exceptionally
strong
international
trade
position.

9
Diversified Financial Services
Diversified Financial Services
Provider
Provider

10
Diversified Financial Services Provider
Diversified Financial Services Provider
Greater Bay Bancorp
Community Banking
Loans of $3.0 billion
Core deposits of $4.2
billion
8 distinct community bank
brands
41 offices
Relationship based
Centralized operations,
international and cash
management support
Bay Area in scope
Assets of $1.6 billion
Commercial finance to
health care businesses
Small ticket leasing
Factoring and asset
based lending
SBA lending
National in scope
Annual premiums of
$2.2 billion
2005 annual revenues of
$154 million *
Offering P&C and D&O,
employee benefits, risk
management services
No underwriting risk
Western U.S. in scope
Specialty Finance
Insurance Brokerage
*Includes Lucini/Parish which was acquired May 2005.

11
Community Banking
Community Banking

12
Community Banking Business
Community Banking Business
•
Operating 8 separate banking identities under single
consolidated charter –
41 office locations throughout the
Greater Bay Area.
•
Common data processing platform, credit policies and
operating procedures –
served and supported by single
administrative staff.
•
Relationship focused:
•
Loans: Commercial ($500M-5MM), CRE ($1-10MM),
and construction ($1-10MM).
•
Deposits: Full suite of business and personal
products.
•
Local people in local markets making local decisions
based upon local knowledge.

13
Community Banking Footprint
Community Banking Footprint

14
Client-Centric Banking Model
Client-Centric Banking Model
Install
Sell
Service
Craft
Locate and
Diagnose
1
5
4
2
3
Client
Link and
Build
6
Relationship
Management
Business
Development

15
Business Development Group Initiatives
Business Development Group Initiatives
•
Proven executive hired in Q4 2005 to build & manage team.
•
Fourteen proven BDOs recruited to date.
•
Top performers from two major local competitors.
•
Virtually all BDOs
from large banks.
•
Targeted to grow to 15 by year-end.
•
Each BDO expected to generate $20MM in annual loan/line
commitments and related deposit business.
•
Commercial and owner-occupied CRE in nature.
•
Target size of $1-6 MM per commitment.

16
Core Deposit Balances
Core Deposit Balances
(1)
(1)
$4.43
$4.56
$4.81
$4.56
$4.47
$4.25
$0
$2
$4
$6
2002
2003
2004
2005
Q1 '06
Q2 '06
($ in Billions)
(1) Core deposits exclude brokered and wholesale institutional deposits.

17
(1) Core deposits exclude brokered and wholesale institutional deposits.
By Region
By Type
Demand
24%
MMDAs
37%
Savings &
NOW
27%
Other Time
Deposits
3%
Time
Deposits
>$100
9%
San Mateo
30%
Contra
Costa
13%
Sonoma
4%
Santa
Clara
38%
Santa Cruz
&
Monterey
6%
Alameda
3%
Marin
2%
San
Francisco
4%
Community Banking Core Deposits
Community Banking Core Deposits
(1)
(1)
June 30, 2006
June 30, 2006

18
Restrained Core Deposit Pricing
Restrained Core Deposit Pricing
-1%
0%
1%
2%
3%
4%
5%
Dec '03
Dec '04
Dec '05
Jun '06
Interest Bearing Core Deposit Cost
LIBOR
Cumulative Rate Change

19
Specialty Finance
Specialty Finance

20
Specialty Finance Business
Specialty Finance Business
•
Collection
of
discrete
businesses
focused
on
acquisition
and
servicing/sale
of
value-based
assets
where
execution,
efficiency,
standardization,
and
productivity
are
essential
to
optimizing
profitability.
•
Transaction
rather
than
relationship-based.
•
Relationships
essentially
limited
to
intermediaries
who
source
the
business
(dealers,
distributors,
etc.).
•
Mandate
to
compete
at
high
end
of
credit
quality
spectrum.
•
No
deviation
from
target
borrower
–
very
disciplined.
•
Intense
focus
on
perpetual
growth
of
credit
risk
knowledge
and
on
automation-based
underwriting
as
core
strategic
elements.

21
Total Assets:       $1.6 billion
Professional dental
and veterinary term
commercial financing
National in scope
Matsco
Small-ticket leasing
National in scope
Greater Bay
Capital
Factoring and asset-
based lending
National in scope
Greater Bay
Business Funding
504 and 7(A) business
sourced direct and via
community banks
Regional in scope
SBA
Lending
Start-up venture aimed
at brokering or retaining
high quality SFD REL
Regional in scope
Residential
Mortgage Lending
Specialty
Finance
Group

22
Specialty Finance Group
Specialty Finance Group
Loan Portfolio Composition
Loan Portfolio Composition
June 30, 2006
June 30, 2006
(1)
Excludes operating lease totals of $56.7 million at 06/30/06.
Matsco
60%
Greater Bay
Capital (1)
14%
SBA Lending
17%
Residential
Mortgage
3%
Greater Bay
Business
Funding
6%

23
Credit Portfolio Profile
Credit Portfolio Profile

24
Core Loan Portfolio Composition
Core Loan Portfolio Composition
Combined Community Banking and Specialty Finance
Combined Community Banking and Specialty Finance
($ in Billions)
$-
$1
$2
$3
$4
$5
2001
2002
2003
2004
2005
Q2 2006
Commercial-Term RE
Construction and Land
Commercial - Community Banking
Commercial-Specialty Finance
SNC/Residential/All Other
$4.51              $4.81              $4.55             $4.47
$4.50               $4.56
14%
13%
26%
16%
31%
11%
17%
24%
15%
33%
10%
19%
23%
12%
36%
9%
23%
22%
11%
36%
9%
26%
20%
14%
31%
8%
29%
16%
17%
29%

25
-400
-200
0
200
400
Dec-03
Jun-04
Dec-04
Jun-05
Dec-05
Jun-06
Commercial - Term RE
Construction and Land
Commercial - Community Banking
Commercial - Specialty Finance
Total Loans *
Core Loan Portfolio Evolution
Core Loan Portfolio Evolution
Combined Community Banking and Specialty Finance
Combined Community Banking and Specialty Finance
(Cumulative Change Since December 2003)
(Cumulative Change Since December 2003)
($ in Millions)
* Total Loans  gross of deferred fees and discounts

26
Term Commercial Real Estate Loan Composition
Term Commercial Real Estate Loan Composition
June 30, 2006
June 30, 2006
Retail
22%
Industrial
16%
Self
Storage
2%
Office
35%
Warehouse
6%
Other
10%
R&D
4%
Hotel/Motel
5%
San Mateo
11%
Contra
Costa
7%
Marin
7%
San
Francisco
9%
Santa Cruz
5%
Sonoma
7%
Monterey
2%
Other
9%
Alameda
15%
Santa
Clara
28%
By Type
By County
Total -
$1.3 Billion

27
Bay Area Office Market
Bay Area Office Market
and Vacancy Trends
and Vacancy Trends
Source: BT Commercial
$0
$2
$4
$6
1999
2000
2001
2002
2003
2004
2005
0%
5%
10%
15%
20%
25%
Avg Rent
Vacancy

28
Construction Loan Portfolio Composition
Construction Loan Portfolio Composition
December 31, 2002
June 30, 2006
1-4 SFR
38%
Multifamily
18%
Office
29%
Industrial
1%
Self
Storage
3%
Retail
2%
Other
9%
Total -
$557 Million
Total -
$612 Million
1-4 SFR
53%
Multifamily
27%
Office
6%
Retail
6%
Land
2%
Self
Storage
1%
R&D
2%
Other
3%

29
Construction Loan Portfolio Composition
Construction Loan Portfolio Composition
June 30,  2006
June 30,  2006
By County
Santa Clara
32%
San
Francisco
13%
San Mateo
13%
Alameda
8%
Santa Cruz
5%
Contra
Costa
7%
Sacramento
4%
San Diego
4%
Other
5%
Marin
2%
Solano
3%
Monterey
2%
Sonoma
2%
Total -
$612 Million

65-70%
29%
< 60%
22%
70-75%
16%
60-65%
28%
75-80%
5%
By  LTV
By Total Commitment Size
Total -
$751 Million
1-4 Family/Condo Construction Portfolio Commitments
1-4 Family/Condo Construction Portfolio Commitments
June 30, 2006
June 30, 2006
$20-25MM
11%
Over
$25MM
17%
Under
$5MM
31%
$15-20MM
10%
$10-15MM
15%
$5-10MM
16%
30

31
Commercial Insurance
Commercial Insurance
Brokerage
Brokerage

32
Commercial Insurance Services Business
Commercial Insurance Services Business
•
Acquired
ABD
Insurance
and
Financial
Services
in
March
2002
–
a
highly-respected
provider
of
commercial
insurance
brokerage
and
risk
management
services.
•
Largest
brokerage
firm
headquartered
on
the
West
Coast
and
14
largest
in
the
nation.
•
4
largest
bank-owned
firm
in
the
country.
•
Diversified
property
and
casualty
(65%)
and
employee
benefit
(35%)
revenue
streams.
•
Key
strengths
in
technology,
biotech,
wine,
construction,
and
agribusiness
industry
sectors.
th
th

33
•
Strategic focus on disciplined expansion (via organic growth
and acquisitions) into key western regional markets.
•
Leverage existing lines of business expertise –
and to
develop enhanced “provider-of-choice”
branding and
pricing positions.
•
Successful 2003 expansion into Seattle.
•
Completed acquisition of highly regarded Lucini/Parish
firm in Nevada –
May 1, 2005.
Commercial Insurance Services Business
Commercial Insurance Services Business

34
Bay Area
Sacramento
Reno
Los Angeles/
Southern CA
Seattle
Additional Major
Western Regional
Markets
ABD Insurance and
Financial Services
2005 Commission & Fee Revenue:  $154 million

35
ABD Geographic Distribution
ABD Geographic Distribution
% of 2005 Revenue
% of 2005 Revenue
Nevada
Seattle
Bay Area
Southern CA/
Central Coast
Sacramento
10%
10%
13%
17%
50%

36
ABD 2005 Revenue Distribution
By Size of Client Relationship *
($ in 000’s)
$25-50
14%
$5-25
16%
Over $75
2%
$500-750
4%
$250-500
14%
$100-250
29%
$50-100
21%
Property and Casualty
* Excludes relationships of less than $5,000
$5-25
15%
Over $750
4%
$500-750
4%
$250-500
12%
$100-250
28%
$25-50
16%
$50-100
21%
Employee Benefits

37
Increased Non-Interest Revenue Contribution
Increased Non-Interest Revenue Contribution
18%
13%
25%
12%
28%
12%
32%
12%
34%
13%
2002
2003
2004
2005
YTD '06
ABD
Other Fee-Based
40%
31%
37%
44%
47%

38
Sound Credit Metrics
Sound Credit Metrics

39
Net Charge-Offs
Net Charge-Offs
$31.6
$17.7
$11.3
$2.7
$0
$25
$50
$75
2003
2004
2005
YTD '06
($ in Millions)

40
Net Charge-Offs by Loan Type
Net Charge-Offs by Loan Type
-$5
$0
$5
$10
$15
2003
$10.9
$4.3
$3.2
$2.0
0.9
2004
$6.7
$3.1
$2.8
$1.6
0.5
2005
$5.7
$0.7
$0.0
$3.0
1.9
YTD '06
$2.6
$0.8
$0.0
($0.9)
0.2
Specialty        
Finance *
C & I
RE Term -
Commercial
Construction &  
Land
Consumer &
Other
($ in Millions)
* Specialty Finance includes, Matsco, GBC, GBBF and SBA.

41
Non-Performing Assets by Loan Type
Non-Performing Assets by Loan Type
$0
$25
$50
$75
$100
6/30/04
9/30/04
12/31/04
3/31/05
6/30/05
9/30/05
12/31/05
3/31/06
6/30/06
CRE
Const./Land
Commercial
Specialty Finance
All Other
$42
$59
$44
($ in Millions)
$53
$88*
$73*
$72*
*
Includes
single
borrowing
relationship
representing
$41.6MM
at
6/30/05,
$36.6MM
at
9/30/05
and
$36.8MM
12/31/05.
$33
$33

42
Strong Financial Indicators
Strong Financial Indicators

43
Capital Strength
Capital Strength
14.9%
13.5%
12.1%
6.0%
Q2 ‘06
13.3%
14.3%
10.0%
Total Risk-Based Capital
12.0%
13.0%
6.0%
Tier 1 Risk-Based Capital
10.4%
10.7%
5.0%
Leverage Ratio
5.6%
6.1%
N/A
Tangible Common Equity /
Tangible Assets
2005
2004
Regulatory
Well-Capitalized
Standard
Capital Ratios

44
4.35%
4.36%
5.29%
5.56%
4.86%
4.52%
4.20%
4.36%
4.26%
7.75%
7.25%
8.50%
9.50%
5.00%
4.25%
4.00%
5.25%
8.25%
2%
4%
6%
8%
10%
12/99
12/00
12/01
12/02
12/03
12/04
12/05
03/06
06/06
GBBK's Avg. Margin
Prime Rate
Net Interest Margin
Net Interest Margin

45
Interest Rate Risk Profile
Interest Rate Risk Profile
•
Neutral
risk
positioning
orientation.
•
Fundamentally
matched
across
maturity
spectrum.
•
Balanced
under
1
year
gap
--
asset
rates
reset
before
liabilities.
•
Investment
portfolio
continues
to
be
managed
for
minimal
credit
and
controlled
convexity
risk.
•
Deposit
repricing
speed
and
balance
behaviors
primary
position
uncertainty.

46
Quality Management
Quality Management

47
Experienced and Committed
Experienced and Committed
Management Team
Management Team
Franklin Templeton, KeyCorp
Allen Gula
Chief Information Officer
ABD, Minet, COMPRO
Dan R. Francis
Insurance Brokerage
Wells Fargo
Colleen M. Anderson
Community Banking
Stanford University, Bank of
America, EurekaBank
Peggy Hiraoka
Human Resources
Wells Fargo, ATT Capital
Keith Wilton
Specialty Finance
Cal Fed, OTS
Kenneth Shannon
Chief Risk Officer
Bank of America
James S. Westfall
Chief Financial Officer
Wells Fargo, Bank of America,
EurekaBank
Byron A. Scordelis
Chief Executive Officer
Experience
Name
Officer

48
Focus on the Future
Focus on the Future

49
2006 Accomplishments of Note
2006 Accomplishments of Note
•
Continuation
of
solid
and
quality
growth
realized
in
specialty
finance
and
commercial
insurance
brokerage
businesses.
•
Integration
of
strategic
insurance
acquisition
successfully
completed.
•
Expansion
of
GBC
franchise
sustained.
•
Repositioning
of
community
bank
asset
portfolio
proceeding
in
concert
with
stated
objectives.
•
Balance
migration
from
CRE
to
construction.
•
BDO
initiative
established
and
growing.
•
Key
risk
and
control
metrics
favorably
reflect
devotion
of
focus
and
resources.
•
Credit
quality
trends
sustainably
strengthening.
•
SOX
compliance
efforts
consistent
with
control-based
ethic.

50
Key Objectives
Key Objectives
•
Restore and drive top-line revenue growth.
•
Quality loan and deposit growth in targeted product
types and client profiles.
•
Focus on C&I, construction, and specialty finance
lending.
•
Continued growth of insurance and other fee revenue
sources.
•
Redoubled focus on pricing disciplines.
•
Achieve and sustain increased cost efficiency.
•
Rationalize responsibilities and structures.
•
Realize growth without added recurring cost.

51
Key Objectives
Key Objectives
•
Pursue
expansion
of
all
existing
business
lines.
•
Be
regarded
as
“best
of
breed”
in
all
control
endeavors.
•
Regulatory,
compliance,
accounting,
SOX,
and
enterprise-wide
risk
management.
•
Portfolio
concentration
and
credit
quality.
•
Interest
rate
risk
management.
•
Be
an
active
force
for
positive
change
in
the
communities
that
we
serve.

52
Recent Developments
Recent Developments
•
Realignment
of
community
bank
“branding”
identities
completed
in
August
2006.
•
Reduced
number
of
franchise
identities
from
twelve
to
eight.
•
Strategic
positioning
around
“natural”
regional
community
banking
economic
markets.
•
Leverages
pre-existing
strength
of
Mid-Peninsula
Bank
identity,
and
coalesces
four
previously
unfocused
identities
in
the
Santa
Clara
Valley
around
single
new
regional
brand
--
with
deposits
totaling
in
excess
of
$1.0
billion.
•
Opened
new
banking
office
in
Santa
Rosa,
and
finalizing
leases
on
new
locations
in
Oakland
and
Livermore
--
both
expected
to
open
by
YE
06.

53
•
Established
de
novo
commercial
insurance
brokerage
operation
in
Eugene,
Oregon
in
August
2006.
-
Continues
ABD’s
strategic
mission
of
building
out
(via
mix
of
organic
and
de
novo
growth)
leading
commercial
insurance
brokerage
position
on
West
Coast.
•
Major
acquisitions
successfully
completed
in
Nevada
and
Washington.
•
De
novo
locations
established
in
San
Diego,
Denver,
and
Eugene.

54
Focus on Shareholder Value
Focus on Shareholder Value

55
GBBK Share Price Performance
GBBK Share Price Performance
0%
200%
400%
600%
800%
GBBK
S&P Bank Index
S&P 500
Nasdaq Bank Index

56
Greater Bay Bancorp
Greater Bay Bancorp