Bay View Capital Corporation Third Quarter 1996 Results; Continued Earnings Growth Before SAIF recapitalization Assessment.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. 15, 1996--Bay View Capital Corp. ("the Company" or "BVCC BVCC Blackstone Valley Chamber of Commerce (Whitinsville, Massachusetts) BVCC Buena Vista Construction Company "), the holding company for Bay View Federal Bank ("BVFB") and 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). Thrift thrift: see leadwort. and Loan ("CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic "), today reported third quarter 1996 earnings of $4.6 million or $.67 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , before the industry-wide, one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , 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. (SAIF) recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. assessment. The Company also disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , as detailed in a separate news release of the same date, that revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to asset valuation estimates for its recently acquired CTL unit have resulted in a dramatic reduction in goodwill and a corresponding significant improvement in tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value. The separate news release also details certain strategies being pursued which could allow nearly $50 million of the Company's investment in CTL to be returned to the Company for redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. . The third quarter 1996 performance, before the SAIF recapitalization assessment, represents an increase of $2.3 million or $.36 per share when compared to net income of $2.3 million or $.31 per share for the corresponding period in 1995. Compared with the previous quarter, earnings before the SAIF recapitalization assessment increased $0.4 million or $.07 per share from second quarter 1996 earnings of $4.2 million or $.60 per share. Earnings for the nine months ended Sept. 30, 1996, before the SAIF recapitalization assessment, was $12.8 million, or $1.83 per share as compared with $4.0 million, or $0.54 per share for the same period in 1995. The increase in earnings was largely due to sustained improvements in the Company's net interest margin which continued to expand during the nine month period ended Sept. 30, 1996. 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 are pleased to report another quarter of solid earnings growth and improved net interest margins for Bay View. Our concerted efforts to strengthen our deposit franchise and lower our cost of funding continues to translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. into positive results for the Company." SAIF Recapitalization Assessment Due to legislation signed by President Clinton Clinton. 1 Town (1990 pop. 12,767), Middlesex co., S Conn., on Long Island Sound; settled 1663, set off from Killingworth and inc. 1838. The school that later became Yale opened here in 1702. on Sept. 30, 1996, 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 and fully fund the SAIF, all SAIF-insured institutions are being assessed a one-time charge on recorded deposits as of March 31, 1995. Customer deposits for BVFB are SAIF-insured whereas deposits for CTL are insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. under the Bank Insurance Fund. The Company's share of this assessment is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $11.7 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ($6.7 million after tax or $.97 per share) based on a charge of 65.7 basis points and is due and payable by Nov. 30, 1996. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: operating results for the three and nine months ended Sept. 30, 1996, after giving effect to the SAIF recapitalization assessment, were a net loss of $2.1 million or $0.30 per share and net income of $6.1 million or $0.86 per share, respectively. As a result of this legislation, premiums on SAIF-insured deposits for BVFB will be reduced for 1997 from approximately 23 basis points to 6.4 basis points which will translate into lower annual deposit costs in 1997. The estimated annual savings associated with this lower premium will be approximately $2.7 million based on the level of deposits for BVFB at Sept. 30, 1996. This estimated benefit is consistent with the Company's expectations. Tangible Cash Earnings Tangible cash earnings exclude non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. associated with the amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . Tangible cash earnings, before the SAIF recapitalization assessment, were $5.0 million or $.72 per share for the third quarter of 1996 as compared to $2.7 million or $.36 per share for the same period in 1995, an increase of $2.3 million or $.36 per share. Compared to the previous quarter, tangible cash earnings, before the SAIF recapitalization assessment, increased $.3 million or $.05 per share, from $4.7 million or $.67 per share for the second quarter of 1996. For the nine months ended Sept. 30, 1996, tangible cash earnings, before the SAIF recapitalization assessment, were $14.1 million or $2.01 per share as compared to $5.1 million or $.70 per share for the same period in 1995. Acquisition of CTL Credit, Inc. The Company completed its acquisition of CTL Credit, Inc., the holding company for CTL, on June June: see month. 14, 1996 and recorded the acquisition with an effective date of June 1, 1996. The acquisition was accounted for using the purchase method of accounting. Under this method, the acquisition purchase price of approximately $62 million was allocated to assets acquired and liabilities assumed based on their estimated fair values as of the effective date of the acquisition. Goodwill, which represents the excess of the purchase price over the fair value of the net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired, was initially estimated at $18.4 million. Subsequent research and analysis has concluded that realizable asset valuations, especially related to selected assets being positioned for securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. or sale, are considerably higher than initially assumed. Based on the revised estimates Revised estimate The third estimate of GDP released about three months after the measurement period. of the fair value of the net assets acquired, goodwill is currently estimated to be $7.0 million at the date of acquisition. See separate news release of same date for additional information on acquisition related accounting and discussion of business strategies. The impact of the revised goodwill on tangible book value per share of the Company at acquisition (June 1, 1996) was an improvement of $1.72 per share based on outstanding shares at Sept. 30, 1996. Including the net change in stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. for the third quarter of 1996 and excluding the SAIF recapitalization charge, the tangible book value per share of the Company has improved by more than 8% to $28.55 at Sept. 30, 1996 compared with $26.42 at June 30, 1996. Even after inclusion of the SAIF recapitalization charge of $1.02 per share, the tangible book value per share at Sept. 30, 1996 improved to $27.53, an increase of $1.11 from $26.42 at June 30, 1996. In light of these valuations, management expects to explore the sale of the CTL equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
Management estimates that capital of $48 million associated with these assets would be returned to the Company for redeployment. The capital returned from CTL when combined with excess capital available at BVFB and excess cash at the Company, would approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. more than $80 million. Edward H. Sondker, president and chief executive officer, said, "Our business strategy is focused on increasing the velocity of our capital utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be . The sale and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. securitization of these assets will allow the Company to recover a large portion of our invested capital while positioning CTL to contribute to the Company's continued future earnings growth momentum through periodic securitizations of future production." David A. Heaberlin, executive vice president, chief financial officer and treasurer TREASURER. An officer entrusted with the treasures or money either of a private individual, a corporation, a company, or a state. 2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. , added, "We expect to utilize this capital pool to aggressively pursue accretive acquisition Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. opportunities. If we are unable to identify meaningful accretive acquisition opportunities within 6-12 months it is likely that these funds will be used to 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. additional shares." Net Interest Margin Continues to Expand Consolidated net interest income for the third quarter of 1996 was $22.9 million, an increase of $9.2 million as compared to third quarter 1995 net interest income of $13.7 million. The consolidated net interest margin for the current third quarter was 2.80%, up 95 basis points as compared to 1.85% for the prior year third quarter. Consolidated net interest income increased by $4.1 million as compared to second quarter 1996 net interest income of $18.8 million. The consolidated net interest margin for the current quarter increased 27 basis points as compared to the second quarter net interest margin of 2.53% (which included the impact of CTL's net interest margin for the month of June 1996 only). The BVFB's net interest margin for the current quarter increased 13 basis points as compared to the previous quarter and 60 basis points as compared to the prior year third quarter. The continuing improvement in net interest margin was primarily due to lower 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. . -0-
The following table shows the yields on interest- earning assets
and cost of funds for BVFB:
Three Months Ended
Sept. 30, 1996 June 30, 1996 Sept. 30, 1995
Interest Yields Interest Yields Interest Yields
(Dollars in thousands)
Assets $ 52,269 7.41% $52,173 7.38% $54,480 7.29%
Liabilities (35,149) 5.27% (35,630) 5.39% (40,734) 5.73%
Net spread $ 17,120 2.14% $16,543 1.99% $13,746 1.56%
Net margin 2.45% 2.32% 1.85%
-0-
The increase in yields on interest-earning assets for BVFB was
primarily due to the repricing of a significant portion of loans
indexed to the Cost of Funds Index ("COFI") and to a lesser extent,
the one-year Treasury. The decrease in cost of retail deposits was
primarily due to favorable repricing of certificates of deposit and
increase in transaction accounts which are at lower rates than
certificates of deposit.
Transaction accounts as a percentage of total deposits increased
to approximately 28% from 26% at June 30, 1996 and approximately 20%
at year-end 1995. The retail cost of deposits at Sept. 30, 1996
was 4.66% as compared to COFI of 4.84%. Retail deposit costs at June
30, 1996 and Sept. 30, 1995 were 4.89% and 5.33%, respectively,
as compared to COFI of 4.82% and 5.13% for the same periods.
-0-
The following table is a summary of cost of retail
deposits for BVFB versus COFI.
Sept. 30, 1996 June 30, 1996 Sept. 30,1995
(Dollars in thousands)
Cost of retail deposits 4.66% 4.89% 5.33%
COFI 4.84% 4.82% 5.13%
Spread above/(below) COFI (0.18)% 0.07% 0.20%
-0-
Consolidated net interest income for the nine months ended
Sept. 30, 1996 was $57.9 million, an increase of $16.2 million as
compared to $41.7 million for the nine months ended Sept. 30,
1995. The net interest margin for the nine months ended Sept.
30, 1996 was 2.51%, up 69 basis points as compared to 1.82% for the
same period a year ago.
-0-
A summary of consolidated net interest income and margins
follows:
Three Months Ended
Sept. 30, 1996 June 30, 1996 Sept. 30, 1995
Net Net Net Net Net Net
Interest Interest Interest Interest Interest Interest
Income Margin Income Margin Income Margin
(Dollars in thousands)
BVFB $17,120 2.45% $16,543 2.32% $13,723 1.85%
CTL (post acquisition)
6,854 5.65% 2,681 5.58% - -
BVCC(a) (1,096) N/A (387) N/A 23 N/A
BVCC-Consolidated
$22,878 2.80% $18,837 2.53% $13,746 1.85%
Nine Months Ended
Sept. 30, 1996 Sept. 30, 1995
Net Net Net Net
Interest Interest Interest Interest
Income Margin Income Margin
(Dollars in thousands)
BVFB $49,857 2.33% $41,670 1.82%
CTL (post acquisition)
9,535 5.61% - -
BVCC(a) (1,462) N/A 72 N/A
BVCC-Consolidated
$57,930 2.51% $41,742 1.82%
(a) Consists primarily of interest expense on $50 million 8.42%
Senior Debentures (all-in cost 8.91% annualized) issued in May 1996
to partially finance the acquisition of CTL.
Improvement in Credit Quality
Credit quality remained strong and has continued to improve as
evidenced by a continuing decline in nonperforming assets and
delinquencies. A summary of the trends in credit quality is as
follows:
-0-
Nonperforming Assets
as a Percentage of Total Assets
Sept. 30, 1996 Dec. 31, 1995 Dec. 31, 1994
(Dollars in thousands)
BVFB $16,409 0.57% $38,811 1.29% $50,577 1.60%
CTL (post acquisition)
6,659 1.23% - - - -
BVCC-Consolidated
$23,068 0.67% $38,811 1.29% $50,577 1.60%
-0-
Loans Delinquent 60 Days or More
as a Percentage of Gross Loans
Sept. 30, 1996 Dec. 31, 1995 Dec. 31, 1994
(Dollars in thousands)
BVFB $16,234 0.77% $20,166 0.96% $48,465 2.33%
CTL (post acquisition)
3,307 0.67% - - - -
BVCC-Consolidated
$19,541 0.76% $20,166 0.96% $48,465 2.33%
-0-
Reserve Adequacy
The consolidated loan loss reserves at Sept. 30, 1996 reflect
the impact of purchase accounting valuation adjustments for CTL. The
CTL allowance for loan losses reflects management's intention to
securitize selective assets which have been reclassified as
held-for-sale and recorded at estimated realizable fair values
consistent with purchase accounting.
Excluding CTL, the allowance for loan losses for BVFB was $27.8
million and $30.9 million at Sept. 30, 1996 and Dec. 31, 1995,
respectively. The allowance for loan losses for BVFB at June 30,
1996 was $28.5 million.
The consolidated provision for losses on loans and securities was
$432,000 for the third quarter of 1996 as compared to $818,000
(including the provision for loan losses pertaining to CTL during the
month of June 1996) for the second quarter of 1996 and $900,000 for
the third quarter of 1995.
The provision for losses on loans and securities for BVFB was
$400,000 for the third quarter of 1996 as compared to $400,000 for
the second quarter of 1996 and $900,000 for the third quarter of
1995. The lower provision for losses for BVFB was primarily due to
the improvements in credit quality as compared to a year ago.
-0-
A summary of loan loss allowances for selective balance sheet
dates is as follows:
Allowances for Losses on Loans and Securities
as a Percentage of Nonperforming Assets
Sept. 30, 1996 Dec. 31, 1995 Dec. 31, 1994
(Dollars in thousands)
BVFB $27,839 169.66% $30,944 79.73% $30,689 62.11%
CTL (post acquisition):
Assets held for portfolio
2,677 - - - - -
Assets held-for-sale
8,574 - - - - -
------- ------- ------- ------- ------ ------
Subtotal 11,251 168.96% - - - -
BVCC-Consolidated
$39,090 169.46% $30,944 79.73% $30,689 62.11%
Allowances for Losses on Loans
as a Percentage of Nonperforming Loans
Sept. 30, 1996 Dec. 31, 1995 Dec. 31, 1994
(Dollars in thousands)
BVFB $27,674 259.41% $30,014 279.07% $29,115 80.16%
CTL (post acquisition):
Assets held for portfolio
2,677 - - - - -
Assets held-for-sale
8,574 - - - - -
------ ------ ------ ------ ------ -----
Subtotal 11,251 348.65% - - - -
BVCC-Consolidated
$38,925 280.14% $30,014 279.07% $29,115 80.16%
Mr. Heaberlin commented, "Our reserve level is clearly
consistent with our intent to maintain strong reserves. We compare
extremely favorably with our peers. With consolidated nonperforming
assets of .67%, 60-day delinquencies of .76% and reserves at nearly
two to three times these respective classifications, we believe the
quality of Bay View's assets is unquestionable."
G & A Expenses - Excluding CTL and Special Mention Items
(See Separate Section)
General and administrative expenses (excluding CTL and special
mention items) for the third quarter of 1996 and 1995 were almost the
same at $10.7 million. General and administrative expenses
(excluding CTL and special mention items) for the second quarter of
1996 were also at $10.7 million.
General and administrative expenses (excluding CTL and special
mention items) for the nine months ended September 30, 1996 were
$32.1 million, a decrease of $3.8 million as compared to the general
and administrative expenses for same period in 1995 of $35.9 million.
The higher expenses during the third quarter of 1995 were primarily
due to expenses incurred relating to the downsizing of the Company's
operations.
General and administrative expenses (excluding CTL, special
mention and related items) for the first nine months of 1996, on an
annualized basis, approximates $42 million which includes deposit
insurance premiums at $.26 for every $100 of deposits.
General and administrative expenses (excluding CTL, special
mention items and normalization of the deposit insurance premium at
the 1997 premium rate of 6.4 basis points) for the first nine months
of 1996 on an annualized basis would approximate $39 million.
General and administration expenses for CTL have declined during the
period subsequent to acquisition.
General and administrative expenses for CTL, on an annualized
basis, based on the trends since acquisition date are projected to be
approximately $19 million. This represents a decline of
approximately $1.5 million on an annualized basis from the
pre-acquisition run rates.
The consolidated efficiency ratios (excluding special mention
items) for the three and nine months ended September 30, 1996 were
56.68% and 57.54%, respectively, compared to 67.92% and 74.25% for
the same periods in 1995, respectively.
This ratio for the second quarter of 1996 was 57.65%. The
improvement in the ratio was attributable to a combination of higher
net interest income and noninterest income as well as lower general
and administrative expenses (excluding special mention items).
The following table of general and administrative expenses and
efficiency ratios excludes special mention items.
Three Months Ended
Sept. 30, 1996 June 30, 1996 Sept. 30, 1995
G&A % G&A % G&A %
(Dollars in thousands)
Bay View
Federal Bank $ 10,340 53.90% $ 10,491 57.38% $ 10,639 67.92%
CTL (post
acquisition) 4,620 52.93% 1,628 56.22% - -
BVCC 389 N/A 187 N/A 121 N/A
BVCC-
Consolidated $ 15,349 56.68% $ 12,306 57.65% $ 10,760 67.92%
Nine Months Ended
Sept. 30, 1996 Sept. 30, 1995
G&A % G&A %
(Dollars in thousands)
Bay View
Federal Bank $ 31,370 57.76% $ 35,487 74.25%
CTL (post acquisition) 6,248 53.75% - -
BVCC 774 N/A 472 N/A
BVCC-Consolidated $ 38,392 57.54% $ 35,959 74.25%
Special Mention Items
Net income for the three months ended September 30, 1996
contained several items which are worthy of special mention. The net
impact of these items on third quarter 1996 results was a net
decrease of $72,000 after tax or $0.01 per share.
Third Quarter 1996 (pretax)
The following special mention items benefited net income during
the period:
- $3.2 million gain from the sale of and income received
from certain real estate owned properties.
- $1.4 million of enhanced profitability resulting from
purchase accounting valuations associated with the CTL
assets being held-for-sale.
The following special mention items were deducted from net income
during the period:
- $2.0 million accrual for termination of data processing
contracts and an additional write-down for computer hardware
relating to the Company's long-term information services
technology agreement with BISYS Group, Inc.
- $1.3 million loss accrual for lease obligations in
excess of related sublease rentals resulting from
unfavorable lease agreement terms.
- $1.2 million expense accrual for long-term incentive
plan awards.
- $210,000 accrual for downsizing loan operations and
relocation of administrative functions.
The following is a summary of the special mention items for the
two previous quarters:
Second Quarter 1996 (pretax)
- $770,000 gain from the sale of and income received from
certain real estate owned properties.
- $500,000 additional write-down due to the sale of the
corporate office complex which closed in the third quarter
of 1996. The Company had initially provided a write-down of
$7.1 million on this property.
- $425,000 write-down related to certain computer
hardware and software. The computer related write-down was
directly related to the Company's decision to enter into a
long-term information services technology agreement with
BISYS Group, Inc.
First Quarter 1996 (pretax)
- $800,000 gain from the sale of and income received from
certain real estate owned properties.
- $350,000 write-off of core deposit intangibles and
fixed assets due to a branch closure.
- $260,000 loss resulting from the sale of approximately
$24 million of mortgage-backed securities from the available
for sale portfolio.
The net impact of special mention items year-to-date for 1996
was not material.
Stock Repurchase Program
The Company's outstanding shares of common stock at September 30,
1996 and December 31, 1995 were 6,640,242 shares and 7,101,590
shares, respectively. The decrease in the number of outstanding
shares was primarily attributable to the repurchase of 550,000 shares
in 1996 (245,000 shares were repurchased in the third quarter of
1996) partially offset by the exercise of stock options.
As a result of the stock repurchases, weighted average shares
outstanding (including certain common stock equivalents) used for
earnings per share calculations has decreased from 7,293,492 shares
in 1995 to 6,939,172 shares for the third quarter of 1996, a decrease
of approximately 5%.
The Company's share repurchase during the third quarter 1996
completed its previously announced intention to repurchase 800,000
shares of common stock. These shares were repurchased at an average
cost of $31.97.
Headquartered in San Mateo, California, the Company has total
assets of $3.4 billion. Bay View Federal Bank operates 26 full
service community banking centers throughout the San Francisco Bay
Area. California Thrift and Loan operates 19 offices throughout
California and the western United States.
Additional information relating to the Company's SEC filings,
earnings releases, corporate news releases and analyst reports is
available on the Internet.
A consolidated financial summary follows:
Bay View Capital Corporation
Consolidated Statements of Financial Condition
(Unaudited)
(Dollars in thousands except per share amounts)
Sept. 30, June 30, Dec. 31,
1996 1996 1995
ASSETS
Cash and cash equivalents:
Cash and due from depository
institution $ 40,999 $ 18,892 $ 24,144
Interest-bearing deposits and
federal funds sold 37,715 17,098 18,616
---------- ---------- ----------
78,714 35,990 42,760
Loans held-for-sale 363,306 - -
Securities available for sale:
Mortgage-backed securities 112,769 115,935 149,778
Investment securities 1,015 1,220 8,035
Securities held to maturity:
Mortgage-backed securities, net
of allowance for losses 514,600 535,454 581,600
Investment securities 32,820 32,547 39,928
Loans receivable held for
investment, net of allowance
for losses 2,208,276 2,521,824 2,062,268
Investment in stock of the
FHLB of San Francisco 45,058 42,601 39,450
Real estate owned, net 8,497 18,290 24,476
Premises and equipment, net 9,310 19,153 16,184
Core deposit premiums 4,238 4,667 5,835
Goodwill 6,636 18,182 -
Other assets 42,936 42,984 34,182
Total assets $3,428,175 $3,388,847 $3,004,496
LIABILITIES AND
STOCKHOLDERS' EQUITY
Customer deposits:
Transaction accounts $ 474,180 $ 465,978 $ 387,610
Certificates of deposit 1,620,274 1,735,626 1,432,230
---------- ---------- ----------
2,094,454 2,201,604 1,819,840
Advances from the FHLB
of San Francisco 829,056 748,550 766,790
Securities sold under
agreements to repurchase 192,632 137,640 166,738
Senior debenture 50,000 50,000 -
Other borrowings 7,260 9,991 7,937
Other borrowings 61,078 34,885 35,214
Total liabilities 3,234,480 3,182,670 2,796,519
Stockholders' equity:
Serial preferred stock:
authorized, 7,000,000 shares;
outstanding: none - - -
Common stock ($.01 par value);
authorized, 20,000,000 shares;
outstanding: 9/30/96 - 6,640,242;
6/30/96 - 6,885,242 shares;
12/31/95 - 7,101,590 shares 66 69 71
Additional paid-in capital 99,989 98,896 97,646
Retained earnings
(substantially restricted) 100,945 114,543 115,966
Unrealized loss on securities
available for sale (net of tax) (2,667) (2,693) (683)
Debt of Employee Stock Ownership Plan (4,638) (4,638) (5,023)
Total stockholders' equity 193,695 206,177 207,977
Total liabilities and
stockholders' equity $3,428,175 $3,388,847 $3,004,496
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands except per share amounts)
Three Months Ended Nine Months Ended
Sept. 30, June 30, Sept. 30, Sept. 30,
1996 1996 1995 1996 1995
Interest income:
Interest on loans
receivable $53,839 $44,941 $40,249 $139,166 $115,055
Interest on mortgage-
backed securities 10,294 10,593 12,715 32,257 42,323
Interest and dividends
on investments 1,895 1,560 1,517 5,109 4,849
------- ------- ------- -------- --------
66,028 57,094 54,481 176,532 162,227
Interest expense:
Interest on
customer deposits 27,016 24,453 24,652 74,763 69,018
Interest on Senior
debenture 1,114 406 - 1,520 -
Interest on borrowings 15,020 13,398 16,083 42,319 51,467
------- ------- ------- ------- --------
43,150 38,257 40,735 118,602 120,485
Net interest income 22,878 18,837 13,746 57,930 41,742
Provision for losses on
loans and securities 432 818 900 1,851 2,700
Net interest income
after provision
for losses 22,446 18,019 12,846 56,079 39,042
Noninterest income:
Loan fees and charges 1,387 1,123 847 2,978 2,941
Loss on sale of
securities - - 1 (262) (2,195)
Rental income from
premises 128 206 199 531 588
Other income 1,387 1,180 1,050 3,988 3,156
------- ------- ------- -------- --------
2,902 2,509 2,097 7,235 4,490
Noninterest expense:
General and
administrative
expenses 19,839 13,231 10,760 43,807 35,959
SAIF recapitalization
assessment 11,750 - - 11,750 -
Real estate owned
operations, net (3,146) (774) (336) (4,807) (946)
Provision for
(recovery of) losses
on real estate 23 (70) (81) (100) (317)
Amortization and write
down of intangibles 524 678 604 1,928 1,814
------- ------- ------- -------- --------
28,990 13,065 10,947 52,578 36,510
Income (loss) before
income tax expense (3,642) 7,463 3,996 10,736 7,022
Income tax expense
(benefit) (1,534) 3,247 1,720 4,635 3,052
Net income (loss) $(2,108) $ 4,216 $ 2,276 $ 6,101 $ 3,970
Earnings (loss)
per share $ (0.30) $ 0.60 $ 0.31 $ 0.86 $ 0.54
Bay View Capital Corporation
Selected Financial Data (Including CTL Post Acquisition)
(Unaudited)
(Dollars in thousands except per share amounts)
Sept. 30, June 30, Dec. 31,
1996 1996 1995
Per Share Data:
Book value per share $ 29.17 $ 29.94 $ 29.29
Tangible book value per share 27.53 26.42 28.46
Loans Receivable:
Mortgage Loans
Single family 738,968 767,505 731,310
Multifamily (5 to 36 units) 665,508 659,806 634,647
Multifamily (37+ units) 369,966 354,383 360,391
Nonresidential 372,993 354,923 333,236
---------- ---------- ----------
2,147,435 2,136,617 2,059,584
Consumer Loans
Auto loans 309,917 317,241 2,366
Home equity and other 68,957 42,661 32,483
Equipment leases 61,488 64,321 -
---------- ---------- -----------
440,362 424,223 34,849
Gross loans receivable 2,587,797 2,560,840 2,094,433
Purchase accounting valuation 23,813 - -
Advances to borrowers 992 980 607
Deferred fees and discounts (2,094) (3,175) (2,758)
Allowance for loan losses (38,925) (36,821) (30,014)
Net loans receivable 2,571,583 2,521,824 2,062,268
Credit Quality:
Nonaccrual loans
Single family $ 6,948 $ 6,485 $ 6,272
Multifamily 4,392 4,246 3,551
Nonresidential 1,366 563 852
Consumer 575 487 80
Equipment leases 614 868 -
---------- ---------- ----------
13,895 12,649 10,755
Real estate owned 8,497 18,290 24,476
Mortgage-backed securities - - 3,580
Other repossessed assets 676 649 -
Total nonperforming assets 23,068 31,588 38,811
Troubled debt restructurings
(TDRs) 647 650 15,641
Total nonperforming assets
and TDRs 23,715 32,238 54,452
Nonperforming assets to
total assets 0.67% 0.93% 1.29%
GVA to nonperforming assets 169.46% 117.09% 79.73%
Loan GVA to nonperforming loans 280.14% 291.10% 279.07%
TDRs to total assets 0.02% 0.02% 0.52%
Loans delinquent 60 days or more $ 19,541 $ 20,369 $ 20,166
Ratio to gross loans 0.76% 0.80% 0.96%
Other Data:
Loans serviced for others $ 428,678 $ 449,236 $ 466,499
Capitalized excess servicing $ 664 $ 755 $ 985
Employees (full time equivalents):
Bay View Federal Bank 384 384 402
California Thrift and Loan 208 208 216
Bay View Capital Corporation
Selected Financial Data (Including CTL Post Acquisition)
(Unaudited)
(Dollars in thousands except per share amounts)
Three Months Ended Nine Months Ended
Sept. 30, June 30, Sept. 30, Sept. 30,
Average Assets: 1996 1996 1995 1996 1995
Loans $2,567,126 $2,222,296 $2,103,844 $2,285,289 $2,078,863
Mortgage-backed
securities 639,918 665,855 762,324 670,288 834,945
Investment
securities 33,566 21,839 39,322 29,669 35,951
Other earning
assets 92,302 88,913 63,598 86,979 78,651
--------- --------- --------- --------- ---------
3,332,912 2,998,903 2,969,088 3,072,225 3,028,410
Nonperforming
assets 31,204 30,312 48,829 33,529 51,841
Other assets 46,543 78,304 47,946 50,191 46,339
Total assets $3,410,659 $3,107,519 $3,065,863 $3,155,945 $3,126,590
Average Liabilities & Equity:
Savings and
checking a/c's $ 331,568 $ 307,398 $ 244,305 $ 314,224 $ 240,244
Money market
accounts 141,326 128,873 122,569 124,026 129,808
Jumbo certificates
of deposit 23,912 33,587 66,080 23,977 86,456
Other certificates
of deposit 1,645,003 1,457,185 1,405,898 1,493,757 1,341,521
--------- --------- --------- --------- ---------
2,141,809 1,927,043 1,838,852 1,955,984 1,798,029
FHLB advances 793,525 735,073 830,039 767,016 898,898
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