Bay View Capital Corporation announces Fourth Quarter and Year-End Earnings.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)--Jan. 26, 1995--Following are the Fourth Quarter and Year-End year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. Earnings for Bay View Capital Corporation: Bay View Capital Corporation, the holding company for Bay View Federal Bank, reported earnings of $4.2 million, or $.58 per share, in the fourth quarter ended December December: see month. 31, 1994. This compares with earnings of $2.2 million, or $.30 per share, in the fourth quarter of 1993. For the full year of 1994, earnings were $14.5 million, or $2.02 per share, up from $12.5 million, or $1.78 per share, in 1993. The earnings for 1994 benefited from lower provisions for losses on loans and real estate compared with 1993. The 1994 earnings also benefited from a reduction in income tax expense of $1.3 million in the fourth quarter of 1994 and $2.1 million for the full year of 1994 due to a revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. of the estimated income tax liability in connection with an IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. examination of prior tax years. John E. Brubaker, President and Chief Executive Officer, said "I am pleased with our earnings performance under difficult market conditions. We continue to make good progress in improving asset quality and controlling risk in our balance sheet for the long term. The credit quality of the loan portfolio has continued to improve and resulted in reduced loan loss provisions. Loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. volume increased to $564 million for 1994 compared to $158 million in 1993 and our deposit base has also continued to improve. However, net interest margin has been negatively affected by rising interest rates because a significant portion of Bay View's loans 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. , an adjustable loan index that typically lags behind current market interest rate movements." Net interest income for the fourth quarter of 1994 was $16.3 million compared with $17.1 million for the same period in 1993. Net interest income for the full year decreased to $66.9 million from $69.7 million in 1993. The decrease in net interest income was due to lower net interest margin which declined from 2.74% for 1993 to 2.34% in 1994. The decline in net interest margin was partially offset by an increase in average interest-earning assets, which grew 12.1% year-to-year. The provision for loan losses for the fourth quarters of 1994 and 1993 were $0.3 million and $0.2 million, respectively. The provision for loan losses was $3.4 million in 1994, down from $7.0 million in 1993 reflecting the continuing improvement in the quality of the loan portfolio. 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. declined from $72.4 million, or 2.72% of total assets at December 31, 1993 to $50.6 million, or 1.60% of total assets at December 31, 1994. The ratio of the allowance for possible losses to nonperforming assets increased from 48.8% at December 31, 1993 to 62.1% at December 31, 1994. Relative to total loans, the allowance for possible loan losses represented 1.40% at December 31, 1994 versus 1.87% at December 31, 1993. General and administrative expenses decreased from $13.9 million in the fourth quarter of 1993 to $12.2 million in the fourth quarter of 1994. The general and administrative expenses in the fourth quarter of 1993 included certain one time expenses, costs associated with rebuilding loan production capacity and meeting certain new regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. reporting requirements. General and administrative expenses for the full year of 1994 were almost the same as 1993 which were $47.3 million and $46.9 million, respectively. Brubaker said "Bay View is committed to high performance community banking. We expect our net interest margin to continue under pressure. In late 1994, we initiated a reengineering Using information technology to improve performance and cut costs. Its main premise, as popularized by the book "Reengineering the Corporation" by Michael Hammer and James Champy, is to examine the goals of an organization and to redesign work and business processes from the ground up study of all banking activities in order to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. our operations. We believe the results of this study will lead to more efficient operations in the future. This is important at any time but even more so given our expectation for further increases in interest rates during 1995." At December 31, 1994, 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. . 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 $3.2 billion in assets and operates 27 community banking branches and 1 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 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: financial summary follows: -0-
BAY VIEW CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands except per share December 31, December 31, amounts) 1994 1993
ASSETS
Cash and cash equivalents: Cash and due from depository institutions $ 21,750 $ 22,894 Interest-bearing deposits and federal funds sold 4,442 1,261
26,192 24,155
Loans and securities available for sale: Loans receivable 704 14,610 Mortgage-backed securities (cost: 1994, $115,151; 1993, $182,538) 108,856 186,643 Investment securities (cost: 1994, $1,000; 1993, $6,146) 980 6,399 Securities held to maturity: Mortgage-backed securities, net of allowance for losses: 1994, $1,574, 1993, $534 812,824 532,053 Investment securities 31,861 5,000 Loans receivable held for investment, net of allowance for losses: 1994, $29,115; 1993, $33,790 2,053,859 1,762,210 Investment in stock of the Federal Home Loan Bank of San Francisco 49,646 38,137 Real estate owned, net of allowance for losses; 1994, $726; 1993, $1,017 13,529 16,858 Premises and equipment, less accumulated depreciation 23,208 21,120 Core deposit premiums and goodwill (intangibles) 9,779 12,198 Other assets 35,091 44,159
Total Assets $ 3,166,529 $ 2,663,542
LIABILITIES AND STOCKHOLDERS' EQUITY Customer deposits $ 1,707,376 $ 1,694,263 Advances from the Federal Home Loan Bank of San Francisco 956,310 719,600 Securities sold under agreements to repurchase 255,106 12,729 Other borrowings 8,542 9,085 Other liabilities 21,880 16,889
Total Liabilities 2,949,214 2,452,566
Stockholders' equity: Serial preferred stock: authorized, 7,000,000 shares; outstanding: none - - Common stock ($.01 par value); authorized, 20,000,000 shares; outstanding: 1994, 7,167,974 shares; 1993, 7,055,263 shares 72 71 Additional paid-in capital 92,630 90,725 Retained earnings (substantially restricted) 133,624 123,394 Unrealized gain (loss) on securities available for sale (net of tax) (3,634) 2,488 Debt of Employee Stock Ownership Plan (5,377) (5,702)
Total Stockholders' Equity 217,315 210,976
Total Liabilities and
Stockholder's Equity $ 3,166,529 $ 2,663,542
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands Three Months Ended Twelve Months Ended except per share December 31, December 31, amounts) 1994 1993 1994 1993 Interest income: Interest on loans receivable $ 35,643 $ 34,293 $ 131,783 $ 145,361 Interest on mortgage- backed securities 15,887 11,288 61,111 43,038 Interest and dividends on investments 1,397 709 4,432 3,127
52,927 46,290 197,326 191,526
Interest expense:
Interest on customer
deposits 18,405 17,075 66,424 68,075
Interest on borrowings 18,213 12,125 63,977 53,775
36,618 29,200 130,401 121,850
Net interest income 16,309 17,090 66,925 69,676 Provision for losses on loans and securities 250 215 3,407 7,031 Net interest income after provision for losses 16,059 16,875 63,518 62,645 Noninterest income: Loan fees and charges 928 1,420 4,537 5,044 (Loss) gain on sale of assets (25) 541 (41) 1,091 Rental income from premises 215 183 809 835 Other income 856 514 3,273 2,586
1,974 2,658 8,578 9,556
Noninterest expense: General and administrative expenses 12,218 13,851 47,287 46,871 Real estate owned operations, net (243) 83 (95) 1 Provision for losses on real estate 172 1,009 145 819 Amortization of intangibles 604 604 2,418 2,104
12,751 15,547 49,755 49,795
Income before income tax expense and extraordinary items 5,282 3,986 22,341 22,406 Income tax expense 1,097 1,836 7,828 9,765 Income before extraordinary items 4,185 2,150 14,513 12,641 Extraordinary items - penalties for prepayment of debts, net of tax - - - (132) Net income $ 4,185 $ 2,150 $ 14,513 $ 12,509 Primary earnings per share: Income before extraordinary items $ 0.58 $ 0.30 $ 2.02 $ 1.80 Extraordinary items - - - (0.02) Net income $ 0.58 $ 0.30 $ 2.02 $ 1.78
SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands except per December 31, December 31, share amounts) 1994 1993 Stockholders' equity (book value) per share $ 30.32 $ 29.90 Ratio of stockholders' equity to total assets 6.86% 7.92% Weighted average (at period end): Yield on interest-earning assets 6.92% 6.98% Cost of interest-bearing liabilities 5.14% 4.67% Net interest spread (at period end) (a) 1.78% 2.31% Net interest margin (at period end) (a) (b) 2.00% 2.48% Nonperforming assets (c) $ 50,577 $ 72,365 Ratio to total assets 1.60% 2.72% Troubled debt restructurings (d) $13,948 $ 14,188 Ratio to total assets .44% .53%
Three Months Ended Twelve Months Ended
December 31, December 31,
1994 1993 1994 1993
Loans: Originated $182,601 $ 51,799 $564,294 $158,279 Purchased/Repurchased 1,896 995 5,352 34,844 Sold 445 13,383 12,010 54,657 Securitized and sold 490 2,555 10,034 2,555 Mortgage-backed securities: Purchased - 178,686 400,746 617,784 Sold - 69,081 - 83,778 Net interest spread (for the period (a) 1.98% 2.56% 2.16% 2.55% Net interest margin (for the period) (a) (b) 2.20% 2.72% 2.34% 2.74% Return on average assets (e) .54% .32% .49% .47% Return on average equity (e) 7.75% 4.12% 6.79% 6.14% Ratio of general and administrative expenses to average assets (e) 1.56% 2.06% 1.59% 1.75% Efficiency ratio (f) 66.74% 72.11% 62.60% 59.98%
(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
and foreclosed real estate.
(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
December 31, 1994 and December 31, 1993, all such loans were
current according to their modified terms.
(e) Ratio excludes net expenses from real estate owned operations.
(f) Ratio of general and administrative expenses to net interest
income and recurring noninterest income.
Prior year balances have been reclassified to conform with current year
presentation.
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CONTACT: Bay View Capital Corp., 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 Moyer is a surname, and may refer to:
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