Bay View Capital Corporation Reports Third Quarter Results.SAN MATEO San Mateo (săn mətā`ō), city (1990 pop. 85,486), San Mateo co., W Calif., on San Francisco Bay; inc. 1894. It is a commercial and retail center with some high-technology manufacturing. San Mateo, Spanish for St. , Calif.--(BUSINESS WIRE)--Oct. 24, 1995--Bay View Capital Corporation ("Company")(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BVFS BVFS Bautechnische Versuchs- und Forschungsanstalt Salzburg (Salzburg, Austria) BVFS Brazos Valley Flight Services (College Station, TX) BVFS Bundesverband Freier Sachverständiger eV ), the holding company for Bay View Federal Bank ("Bank"), reported earnings of $2.3 million, or $.31 per share, for the third quarter ended September September: see month. 30, 1995. This compares with earnings of $3.7 million, or $.51 per share, for third quarter of 1994. The earnings decline was primarily due to lower net interest income. The decline was also due to the fact that third quarter results a year ago benefited from reduced tax expenses arising from a revision of the Company's tax liabilities for prior years. However, earnings for the current quarter benefited from lower general and administrative expense which continued to decline reflecting the impact of cost reductions previously taken. For the nine months period ended September 30, 1995, earnings were $4.0 million, or $.54 per share, compared with $10.3 million, or $1.44 per share, for the same period in 1994. Net interest income for the third quarter of 1995 was $13.7 million compared with $16.6 million for the same period in 1994. The decrease in net interest income was primarily due to a decline in the net interest margin to 1.85% from 2.33% in the third quarter of 1994. A significant portion of Bay View's assets are indexed to the Eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval District Cost of Funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. ("COFI COFI Cost of Funds Index COFI Council Of Forest Industries (Canada) COFI Community Organizing and Family Issues COFI Checkout and Fault Isolation COFI Coder/Decoder Filter (electrical engineering) "). The increase in the COFI index compared to a year ago was out paced by an increase in cost of funds in a rising interest rate environment. The net interest margin improved from 1.81% in the second quarter of 1995. Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide H. Sondker, President and Chief Executive Officer, said "We expect to see further expansion in the net interest margin as we build our transaction account base and reprice our higher costing liabilities. However, net interest income is not expected to grow at a similar pace as we believe the balance sheet will continue to shrink shrink Vox populi noun A psychiatrist slightly. We are taking the opportunity to adjust the balance sheet to continue improving profitability for the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ." The provision for losses on loans and securities were $0.9 million and $0.6 million for the third quarter of 1995 and 1994, respectively. The lower provision for losses in the prior year quarter was due to recoveries of amounts previously charged-off. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. decreased to $44.0 million at September 30, 1995 from $50.6 million at December December: see month. 31, 1994. The allowance for losses on loans and securities was $30.0 million at the end of the third quarter of 1995 versus $30.7 million at December 31, 1994. General and administrative expenses were $10.8 million in the third quarter of 1995, down from 12.0 million for the same period in 1994. During the second quarter of 1995, the Company recorded a $1.9 million charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc workforce reductions and other costs related to downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing the Company's operations. Sondker said "We will continue to evaluate our operating structure with the intent to improve productivity throughout the Bank. We are pleased with the reductions in operating costs operating costs npl → gastos mpl operacionales for the third quarter but still have much to do." At September 30, 1995, Bay View Federal Bank was deemed "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " under current capital regulations and continued to exceed its fully phased-in regulatory capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Consistent with prior announcement, the Company has made open-market purchases open-market purchase The buying of stocks and bonds in the securities markets. For example, in order to satisfy the sinking fund requirement of a bond indenture, the issuer may call securities from investors or make open-market purchases. of approximately 30,000 shares of its common stock subsequent to September 30, 1995. The Company expects to continue its repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program along the terms that were previously disclosed. Pending federal legislation to recapitalize re·cap·i·tal·ize tr.v. re·cap·i·tal·ized, re·cap·i·tal·iz·ing, re·cap·i·tal·iz·es To change the capital structure of (a corporation). re·cap the Savings Association Insurance Fund Savings Association Insurance Fund (SAIF) A government organization that replaced the Federal Savings and Loan Insurance Corporation as the provider of deposit insurance for thrift institutions. would entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary charging savings institutions a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. special assessment. The proposed assessment of between 0.85% and 0.90% of total insured deposits would be in addition to the Bank's annual deposit insurance premium. The Company has appointed David A. Heaberlin as Executive Vice President, Chief Financial Officer and Treasurer of the Company and the Bank effective November November: see month. 1, 1995. Heaberlin has more than 20 years experience in the financial industry. He served as the Senior Vice President and Chief Financial Officer of ITT ITT Initial Teacher Training (UK) ITT I Think That ITT Invitation To Tender ITT Individual Time Trial (professional cycling) ITT Intention-To-Treat ITT In This Thread (forums) Residential Capital Corporation from 1993 to 1994 and most recently as Senior Vice President and Chief Financial Officer of First California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Mortgage Service America. Prior to 1993, he served as the Chief Financial Officer of several savings banks savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. as well as a commercial bank. Headquartered in San Mateo, California San Mateo is a city in San Mateo County, California, in the San Francisco Bay Area. It is one of the larger suburbs on the San Francisco Peninsula, located between Burlingame to the north, Foster City to the East, and Belmont to the south. , Bay View Federal Bank has $3.1 billion in assets and operates 27 banking centers and one loan production office in the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay . A consolidated financial summary follows: -0-
BAY VIEW CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands except per September 30, December 31, share amounts) 1995 1994
ASSETS
Cash and cash equivalents:
Cash and due from depository
institutions $ 17,971 $ 21,750
Interest-bearing deposits and
federal funds sold 13,761 4,442
31,732 26,192
Loans and securities available for sale:
Loans receivable --- 704
Mortgage-backed securities (cost: 1995,
$3,592; 1994, $115,151) 4,174 108,856
Investment securities (cost: 1995,
$8,000; 1994, $1,000) 8,050 980
Securities held to maturity:
Mortgage-backed securities, net of
allowance for losses:
1995, $1,541; 1994, $1,574 752,416 812,824
Investment securities 36,884 31,861
Loans receivable held for investment,
net of allowance for losses:
1995, $28,417; 1994, $29,115 2,094,231 2,053,859
Investment in stock of the Federal
Home Loan Bank of San Francisco 41,009 49,646
Real estate owned, net 25,539 13,529
Premises and equipment, net 23,919 23,208
Core deposit premiums and goodwill
(intangibles) 7,964 9,779
Other assets 30,915 35,091
Total assets $ 3,056,833 $ 3,166,529
LIABILITIES AND STOCKHOLDERS' EQUITY
Customer deposits $ 1,847,277 $ 1,707,376
Advances from the Federal Home Loan
Bank of San Francisco 732,130 956,310
Securities sold under agreements to
repurchase 220,422 255,106
Other borrowings 7,973 8,542
Other liabilities 22,618 21,880
Total liabilities 2,830,420 2,949,214
Stockholders' equity:
Serial preferred stock: authorized,
7,000,000 shares; outstanding: none --- ---
Common stock ($.01 par value);
authorized, 20,000,000 shares;
outstanding: 1995, 7,393,711 shares;
1994, 7,167,974 shares 74 72
Additional paid-in capital 96,703 92,630
Retained earnings (substantially
restricted) 134,296 133,624
Unrealized gain (loss) on securities
available for sale (net of tax) 363 (3,634)
Debt of Employee Stock Ownership Plan (5,023) (5,377)
Total stockholders' equity 226,413 217,315
Total liabilities and stockholders'
equity $ 3,056,833 $ 3,166,529
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands Three Months Ended Nine Months Ended except per share September 30, September 30, amounts) 1995 1994 1995 1994 Interest income: Interest on loans receivable $ 40,249 $ 32,125 $ 115,055 $ 96,140 Interest on mortgage- backed securities 12,715 16,343 42,323 45,224 Interest and dividends on investments 1,517 1,299 4,849 3,035
54,481 49,767 162,227 144,399
Interest expense: Interest on customer deposits 24,652 16,475 69,018 48,019 Interest on borrowings 16,083 16,719 51,467 45,764
40,735 33,194 120,485 93,783
Net interest income 13,746 16,573 41,742 50,616 Provision for losses on loans and securities 900 566 2,700 3,157 Net interest income after provision for losses 12,846 16,007 39,042 47,459 Noninterest income: Loan fees and charges 847 933 2,941 3,609 Gain (loss) on sale of assets 1 (19) (2,195) (16) Rental income from premises 199 199 588 594 Other income 1,050 797 3,156 2,417
2,097 1,910 4,490 6,604
Noninterest expense: General and administrative expenses 10,760 11,997 35,959 35,069 Real estate owned operations, net (336) 26 (946) 148 Provision for (recovery of) losses on real estate (81) 80 (317) (27) Amortization of intangibles 604 604 1,814 1,814
10,947 12,707 36,510 37,004
Income before income tax expense 3,996 5,210 7,022 17,059 Income tax expense 1,720 1,535 3,052 6,731 Net income $ 2,276 $ 3,675 $ 3,970 $ 10,328 Earnings per share $ 0.31 $ 0.51 $ 0.54 $ 1.44
SELECTED FINANCIAL DATA
(Unaudited)
(Dollars in thousands except September 30, December 31, per share amounts) 1995 1994 Stockholders' equity (book value) per share $ 30.62 $ 30.32 Ratio of stockholders' equity to total assets 7.41% 6.86% Nonperforming assets (c) $43,984 $50,577 Ratio to total assets 1.44% 1.60% Troubled debt restructurings (d) $14,783 $13,948 Ratio to total assets 0.48% 0.44%
Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 1995 1994 1995 1994
Loans: Originated $ 57,498 $157,737 $212,342 $381,693 Purchased/Repurchased 11,376 --- 13,025 3,456 Sold --- 818 119 11,565 Securitized and sold --- --- --- 9,544 Mortgage-backed securities: Purchased --- --- --- 400,746 Sold --- --- 103,454 --- Net interest spread (for the period) (a) 1.56% 2.14% 1.55% 2.22% Net interest margin (for the period) (a) (b) 1.85% 2.33% 1.82% 2.40% Return on average assets (e) 0.30% 0.48% 0.17% 0.47% Return on average equity (e) 4.03% 6.86% 2.37% 6.47% Ratio of general and administrative expenses to average assets (e) 1.40% 1.58% 1.53% 1.59% Efficiency ratio (f) 67.92% 64.84% 74.25% 61.27%
(a) Net interest spread and margin are calculated excluding
nonperforming assets.
(b) Net interest margin represents net interest spread after
including a factor for the excess of interest-earning assets
over interest-bearing liabilities.
(c) Loans ninety days or more delinquent (excluding accruing loans
delinquent ninety days or more), loans designated as
nonperforming, nonperforming securities and real estate owned.
(d) Real estate loans which have been modified (due to borrower
financial difficulties) with a stated interest rate and/or a
monthly payment rate lower than the prevailing market rate. At
September 30, 1995 and December 31, 1994, all such loans were
current according to their modified terms.
(e) Annualized.
(f) Ratio of general and administrative expenses (including non-
recurring expenses) to net interest income and recurring
noninterest income.
CONTACT: Bay View Capital Corporation, San Mateo Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. E. Moyer, 415/312-7272 |
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