SAN MATEO, Calif., Nov. 7 /PRNewswire-FirstCall/ -- Bay View
Capital Corporation (the "Company") today reported a third quarter
2005 net loss of $1.4 million, or $0.21 per diluted share, compared
to a second quarter 2005 net loss of $1.5 million, or $0.23 per
diluted share, and a third quarter 2004 net loss of $1.6 million,
or $0.25 per diluted share. Net loss for the nine months ended
September 30, 2005 was $3.2 million, or $0.49 per diluted share,
compared to $2.7 million, or $0.41 per diluted share, for the nine
months ended September 30, 2004. Third Quarter Results of
Operations Record quarterly loan production by Bay View Acceptance
Corporation ("BVAC"), the Company's auto finance subsidiary,
increased net interest income and decreased provision for credit
losses highlighted the third quarter results. However, net leasing
income declined with the continued runoff of the Company's
liquidating auto lease portfolio, and noninterest expense increased
due primarily to activities associated with the Company's other
liquidating assets. Interest rates continued to rise in the third
quarter of 2005, producing an unrealized gain of $0.7 million in
the Company's interest rate derivatives for the quarter. The
Company's net interest income increased to $5.0 million for the
third quarter of 2005 from $4.0 million for the second quarter of
2005 and $3.8 million for the third quarter of 2004, primarily on
growth in auto contracts receivable during the first nine months of
2005. However, the Company's net interest margin declined as
floating-rate funding costs on BVAC's warehouse credit facility
rose more rapidly than yields on warehoused auto contracts. The
Company recorded a provision for credit losses of $1.3 million for
the third quarter of 2005 compared to $1.8 million for the second
quarter of 2005 and $0.3 million for the third quarter of 2004.
During the third quarter of 2005, auto contracts
held-for-investment decreased by $43.5 million while auto contracts
held-for-sale increased by $133.3 million. The Company's
noninterest income was $1.8 million for the third quarter of 2005
compared to $1.1 million for the second quarter of 2005 and $1.2
million for the third quarter of 2004. The increase in noninterest
income was largely due to the aforementioned gain on derivative
instruments, partially offset by reduced leasing income as that
portfolio continued to run off. During the third quarter of 2005,
the Company recorded $0.7 million of unrealized gain on its
interest rate derivatives, designated as fair value hedges,
compared to $1.1 million of unrealized loss in the second quarter
of 2005 and $1.8 million of unrealized loss in the third quarter of
2004. Leasing income declined by $1.9 million compared to the third
quarter of 2004. The Company's noninterest expense was $7.7 million
for the third quarter of 2005 compared to $5.8 million for the
second quarter of 2005 and $7.3 million for the third quarter of
2004. The linked-quarter increase was primarily due to additional
accrued liquidation expense, higher professional and legal fees and
a $0.5 million writedown on the Company's liquidating real estate
owned portfolio. The writedown and subsequent sale of this property
during the third quarter of 2005 reduced nonperforming assets in
the liquidating portfolio to $0.7 million at September 30, 2005
from $2.7 million at June 30, 2005. Financial Condition Auto
contracts receivable increased by $263.3 million, or 80%, in the
nine months ended September 30, 2005. Total assets increased to
$693.9 million at September 30, 2005 from $423.3 million at
December 31, 2004. At September 30, 2005, borrowings included
$229.4 million of outstandings on BVAC's warehouse credit facility
and $345.7 million of securitization notes payable. During the
first nine months of 2005, the Company liquidated an additional
$9.7 million of its remaining auto lease portfolio, reducing the
balance at September 30, 2005 to $0.3 million. At September 30,
2005, the Company had $20.4 million of current and deferred tax
assets, net, consisting of current and deferred tax assets of $41.9
million less a valuation allowance of $21.5 million. Bay View
Acceptance Corporation BVAC produced third quarter 2005 net income
of $1.0 million compared to a second quarter 2005 net loss of $864
thousand and a third quarter 2004 net loss of $548 thousand. Net
interest income rose by 23% on a linked-quarter basis and 32% on a
year-over-year basis -- to $4.8 million for the third quarter of
2005 from $3.9 million for the second quarter of 2005 and $3.6
million for the third quarter of 2004 -- on $263.3 million of
growth in auto contracts receivable during the first nine months of
2005. Net interest margin declined by 6 basis points on a
linked-quarter basis and 163 basis points year-over-year. Net
interest margin averaged 3.21% for the third quarter of 2005
compared to 3.27% for the second quarter of 2005 and 4.84% for the
third quarter of 2004 as floating-rate funding costs on BVAC's
warehouse credit facility rose more rapidly than yields on
warehoused auto contracts. As previously noted, third quarter 2005
results included a $0.7 million unrealized gain on interest rate
derivatives and a lower provision for credit losses. Third quarter
2005 purchases of auto contracts rose to $147.5 million from second
quarter 2005 purchases of $144.8 million and third quarter 2004
purchases of $69.5 million due largely to the success of BVAC's
efforts to broaden its market for good credit quality customers.
For the third quarter of 2005, BVAC's purchased contract rate
averaged 9.04% compared to 8.88% for the second quarter of 2005 and
8.06% for the third quarter of 2004 -- an increase of 16 basis
points quarter-over-quarter and 99 basis points year-over-year.
FICO credit scores averaged 734 for both second quarter and third
quarter 2005 production compared with 742 for third quarter 2004
production. Net chargeoffs improved to an annualized rate of 0.85%
of managed contracts in the third quarter of 2005 from 0.92% in the
second quarter of 2005 and 1.01% in the third quarter of 2004. At
September 30, 2005, BVAC was servicing approximately 37,000 auto
contracts with an aggregate outstanding balance of $744 million
compared to approximately 28,000 auto contracts with an aggregate
outstanding balance of $557 million at September 30, 2004. In July
2005, BVAC issued $180.9 million of auto receivable-backed notes
through Bay View 2005-LJ-2 Owner Trust. The issue, BVAC's first
senior/ subordinate structure, was comprised of four AAA-rated
fixed-rate senior note classes and three subordinate classes rated
down to BBB. Principal is paid sequentially to the notes. In this
transaction, credit support to all classes is provided by excess
spread, a reserve account and subordination in the form of an
unrated certificate. The notes have final maturities ranging
between July 28, 2006 and February 25, 2014 and contain a provision
that grants BVAC the option of calling the notes at any time after
the aggregate balance of the receivables has been reduced to 15% of
the original pool of receivables. Proceeds from the issuance of the
notes were used to repay $180.0 million of borrowings on BVAC's
revolving warehouse credit facility. BVAC has evaluated its
exposure to losses in the areas affected by Hurricane Katrina and
Hurricane Rita, including a review of outstanding auto contract
balances for borrowers in Alabama, Louisiana, Mississippi and
certain areas of Texas, delinquencies of borrowers in these areas,
strategies for tracking borrowers that may have left these areas to
reside elsewhere, and vehicle losses related to flood damage. The
Company believes it has no material exposure to losses from
Hurricane Katrina and Hurricane Rita. Other Today the Company also
filed a Form 8-K Current Report with the Securities and Exchange
Commission ("SEC") announcing that it had signed a definitive
agreement whereby a subsidiary of AmeriCredit Corp. (NYSE:ASF) will
purchase all of the outstanding capital stock of BVAC in an
all-cash transaction for approximately $62.5 million, the
approximate book value of BVAC as of June 30, 2005. The sale of
BVAC to AmeriCredit is expected to close during the first half of
2006, subject to approval of the sale by the Company's stockholders
and customary government approvals. AmeriCredit is a leading
independent auto finance company that operates throughout the
United States. On October 28, 2005, the Company filed a Form 8-K
Current Report with the SEC announcing the execution of a
definitive agreement to merge with Great Lakes Bancorp, Inc.
("Great Lakes") of Buffalo, New York, with the Company as the
surviving corporation. Great Lakes is the holding company for
Greater Buffalo Savings Bank (the "Bank") which was founded in
November 1999 and as of September 30, 2005 reported assets of $771
million. The Bank operates 9 full service branches and currently
has 4 additional branches under construction in Western New York.
Under the terms of the merger agreement, Great Lakes stockholders
will receive a fixed ratio of 1.0873 shares of Bay View common
stock for each share of Great Lakes common stock. Based on the
closing price of Bay View common stock on October 25, 2005, the
transaction is valued at approximately $67.1 million. After
completion of the merger, Bay View stockholders will own
approximately 60% of Bay View's then outstanding shares. The merger
is expected to close in the first quarter of 2006, subject to
receipt of government regulatory approvals and stockholder
approvals. The merged businesses will operate under the name of
Great Lakes Bancorp, but will maintain Bay View's listing on the
NYSE. Three members of Bay View's senior executive team will be
joining the Board of Directors of Great Lakes, which will have 15
members upon the merger. Following the merger, Robert B. Goldstein
will serve as Chairman of the Executive Committee of the Great
Lakes Board, Charles G. Cooper will become Chairman of the ALCO and
Risk Management Committee of the Great Lakes Board and John W. Rose
will become Chairman of the Investor Relations Committee of the
Great Lakes Board. They will join Barry Snyder, who will continue
as Chairman of the Board of Great Lakes, and Andrew W. Dorn, Jr.,
who will continue as President and Chief Executive Officer of Great
Lakes. The Company does not expect the merger to adversely impact
its net operating loss carryforwards. Conference Call The Company
will host a conference call at 2:00 p.m. PST on Wednesday November
9, 2005 to discuss its financial results. Analysts, media
representatives and the public are invited to listen to this
discussion by calling 1-888-793-6954 and referencing the password
"BVC." An audio replay of this conference call will be available
through Friday, December 9, 2005 and can be accessed by dialing
1-866-486-4643. Bay View Capital Corporation is a financial
services company headquartered in San Mateo, California. Its common
stock is listed on the NYSE: BVC. For more information, visit the
Company's website at http://www.bayviewcapital.com/.
Forward-Looking Statements All statements contained in this release
that are not historic facts are based on current expectations. Such
statements are forward-looking statements (as defined in the
Private Securities Litigation Reform Act of 1995) in nature and
involve a number of risks and uncertainties. Although the Company
currently believes that the assumptions underlying the
forward-looking statements are reasonable, any of the assumptions
could prove inaccurate and, therefore, there can be no assurance
that the results contemplated by the forward-looking statements
will be realized. For information regarding factors that could
cause the results contemplated by the forward-looking statements to
differ from expectations, such as the inability to achieve any
financial goals related to contemplated asset resolution, including
the inability to use net operating loss carryforwards that the
Company currently has, please refer to the Company's Reports on
Forms 10-K and 10-Q filed with the SEC. In light of the significant
uncertainties inherent in the forward- looking statements included
herein, the inclusion of such statements should not be regarded as
a representation by the Company or any other person. The Company
disclaims any obligation to update such forward-looking statements
or to announce publicly the results of any revisions to any of the
forward- looking statements included herein to reflect future
events or developments. Bay View Capital Corporation Consolidated
Statements of Financial Condition September 30, December 31, 2005
2004 (Unaudited) (Dollars in thousands) ASSETS Cash $10,531 $4,447
Restricted cash 38,287 26,845 Retained interests in securitizations
available-for-sale 20,564 22,636 Auto installment contracts and
loans held-for-sale: Auto installment contracts 234,824 75,021
Other loans -- 902 Auto installment contracts held-for-investment,
net 6,975 252,863 Securitized auto installment contracts
held-for-investment, net 349,417 -- Investment in operating lease
assets, net 344 10,041 Real estate owned, net 722 3,379 Premises
and equipment, net 638 733 Repossessed vehicles 407 439 Current and
deferred income taxes, net 20,436 16,977 Goodwill 1,846 1,846 Other
assets 8,863 7,199 Total assets $693,854 $423,328 LIABILITIES AND
STOCKHOLDERS' EQUITY Borrowings: Warehouse credit facility and
other short-term borrowings $229,446 $298,755 Securitization notes
payable 345,723 -- Other borrowings 1 1,895 Other liabilities 9,675
9,629 Liquidation reserve 7,708 8,856 Total liabilities 592,553
319,135 Stockholders' equity: Common stock ($.01 par value);
authorized, 80,000,000 shares; issued, 2005 - 6,597,848 shares;
2004 - 6,597,303 shares; outstanding, 2005 - 6,596,431 shares; 2004
- 6,593,860 shares 66 66 Additional paid-in capital 109,254 109,578
Accumulated deficit (7,829) (4,585) Treasury stock, at cost; 2005 -
1,417 shares; 2004 - 3,443 shares (252) (587) Accumulated other
comprehensive income (loss) 62 (279) Total stockholders' equity
101,301 104,193 Total liabilities and stockholders' equity $693,854
$423,328 Bay View Capital Corporation Consolidated Statements of
Operations and Comprehensive Loss (Unaudited) For the Three Months
Ended September 30, June 30, September 30, 2005 2005 2004 (In
thousands, except per share amounts) Interest income: Interest on
auto installment contracts and other loans $10,305 $8,276 $5,217
Interest on short-term investments and retained interests in
securitizations 980 844 743 11,285 9,120 5,960 Interest expense:
Interest on warehouse credit facility and other short-term
borrowings 2,553 2,661 2,130 Interest on securitization notes
payable 3,775 2,440 -- Other interest expense -- 5 17 6,328 5,106
2,147 Net interest income 4,957 4,014 3,813 Provision for credit
losses 1,257 1,793 331 Net interest income after provision for
credit losses 3,700 2,221 3,482 Noninterest income: Leasing income
631 1,843 2,510 Loan servicing income 408 472 720 Loan fees 254 193
239 Unrealized gain (loss) on derivative instruments 738 (1,106)
(1,757) Loss on auto installment contracts and other loans
held-for-sale and retained interests in securitizations, net (280)
(585) (616) Other, net 56 279 68 1,807 1,096 1,164 Noninterest
expense: General and administrative 7,067 5,630 6,009 Leasing
expense 60 156 1,190 Real estate owned, net 545 24 109 7,672 5,810
7,308 Loss before income tax benefit (2,165) (2,493) (2,662) Income
tax benefit (801) (947) (1,044) Net loss $(1,364) $(1,546) $(1,618)
Basic loss per share $(0.21) $(0.23) $(0.25) Diluted loss per share
$(0.21) $(0.23) $(0.25) Weighted-average basic shares outstanding
6,596 6,596 6,588 Weighted-average diluted shares outstanding 6,596
6,596 6,588 Net loss $(1,364) $(1,546) $(1,618) Other comprehensive
income (loss), net of tax: Change in unrealized gain (loss) on
securities available-for-sale, net of tax expense (benefit) of $66,
$77 and ($254) for the three month periods ended September 30,
2005, June 30, 2005 and September 30, 2004, respectively 103 120
(398) Comprehensive loss $(1,261) $(1,426) $(2,016) Bay View
Capital Corporation Consolidated Statements of Operations and
Comprehensive Loss (Unaudited) For the Nine Months Ended September
30, September 30, 2005 2004 (In thousands, except per share
amounts) Interest income: Interest on auto installment contracts
and other loans $24,931 $13,880 Interest on short-term investments
and retained interests in securitizations 2,545 2,204 27,476 16,084
Interest expense: Interest on warehouse credit facility and other
short-term borrowings 7,624 4,906 Interest on securitization notes
payable 7,475 -- Other interest expense 13 1,346 15,112 6,252 Net
interest income 12,364 9,832 Provision for credit losses 3,887 852
Net interest income after provision for credit losses 8,477 8,980
Noninterest income: Leasing income 4,544 11,334 Loan servicing
income 1,432 2,519 Loan fees 630 963 Unrealized gain on derivative
instruments 1,112 651 Loss on auto installment contracts and other
loans held-for-sale and retained interests in securitizations, net
(1,314) (2,261) Other, net 577 1,168 6,981 14,374 Noninterest
expense: General and administrative 19,303 18,696 Leasing expense
731 8,705 Real estate owned, net 573 389 20,607 27,790 Loss before
income tax benefit (5,149) (4,436) Income tax benefit (1,905)
(1,740) Net loss $(3,244) $(2,696) Basic loss per share $(0.49)
$(0.41) Diluted loss per share $(0.49) $(0.41) Weighted-average
basic shares outstanding 6,595 6,583 Weighted-average diluted
shares outstanding 6,595 6,583 Net loss $(3,244) $(2,696) Other
comprehensive income, net of tax: Change in unrealized gain on
securities available-for-sale, net of tax expense of $220 and $110
for the nine month periods ended September 30, 2005 and September
30, 2004, respectively 341 172 Comprehensive loss $(2,903) $(2,524)
BAY VIEW CAPITAL CORPORATION SELECTED FINANCIAL DATA (Unaudited) At
At At September 30, December 31, September 30, 2005 2004 2004
(Dollars in thousands except per share amounts) Auto Installment
Contracts and Other Loans Receivable: Auto installment contracts
Auto installment contracts held-for-sale $234,824 $75,021 $129,371
Auto installment contracts held-for-investment, net 6,975 252,863
147,703 Securitized auto installment contracts held-for-investment,
net 349,417 -- -- Total auto installment contracts, net 591,216
327,884 277,074 Other loans held-for-sale -- 902 925 Auto
installment contracts and other loans receivable, net (1) $591,216
$328,786 $277,999 Credit Quality (Liquidating Portfolio):
Nonperforming assets - total (2) (3) $722 $4,282 $5,104
Nonperforming assets - franchise $552 $3,792 $4,602 Loans
delinquent 60 days or more $-- $902 $925 Loans delinquent 60 days
or more - franchise $-- $583 $593 Per Share Data: Book value per
share $15.36 $15.80 $18.35 Other Data: Full-time equivalent
employees, including BVAC 105 125 128 (1) Includes allowances for
mark-to-market valuation reserves and credit losses of $3.7
million, $2.7 million and $2.0 million at September 30, 2005,
December 31, 2004 and September 30, 2004, respectively. (2)
Consists entirely of real estate owned at September 30, 2005. (3)
Nonperforming assets include mark-to-market valuation reserves of
$1.2 million at both December 31, 2004 and September 30, 2004,
respectively. BAY VIEW ACCEPTANCE CORPORATION (Unaudited) At At At
September 30, December 31, September 30, 2005 2004 2004 (Dollars in
thousands) Selected Balance Sheet Information: Cash $6,376 $3,278
$5,226 Restricted cash 21,454 7,540 9,768 Retained interests in
securitizations available-for-sale 20,564 22,636 24,680 Auto
installment contracts held-for-sale 234,824 75,021 129,371 Auto
installment contracts held-for-investment, net 6,975 252,863
147,703 Securitized auto installment contracts held-for-investment,
net 349,417 -- -- Advances to parent -- 3,010 -- Other assets
10,884 7,969 7,704 Total assets $650,494 $372,317 $324,452
Warehouse credit facility and other short-term borrowings $229,446
$298,755 $246,006 Securitization notes payable 345,723 -- --
Advances from parent 58 -- 4,220 Current and deferred taxes, net
6,360 6,947 6,860 Other liabilities 5,282 4,277 5,187 Total
liabilities 586,869 309,979 262,273 Stockholder's equity 63,625
62,338 62,179 Total liabilities and stockholder's equity $650,494
$372,317 $324,452 BAY VIEW ACCEPTANCE CORPORATION (Continued)
(Unaudited) For the Three Months Ended For the Nine Months Ended
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, 2005 2005 2004
2005 2004 (Dollars in thousands) Selected Results of Operations
Information: Interest income on auto installment contracts $10,305
$8,276 $5,170 $24,931 $13,477 Interest income on short-term
investments and retained interests in securitizations 828 731 638
2,189 1,956 Interest expense on borrowings (6,331) (5,100) (2,177)
(15,090) (5,184) Net interest income 4,802 3,907 3,631 12,030
10,249 Provision for credit losses (1,257) (1,793) (331) (3,887)
(852) Loan servicing income 398 468 712 1,409 2,472 Loan fees 222
160 204 532 610 Unrealized gain (loss) on derivative instruments
738 (1,106) (1,757) 1,112 651 Loss on auto installment contracts
held-for-sale and retained interests in securitizations (348) (356)
(682) (1,224) (2,242) Other income, net 45 51 50 140 126 General
and administrative expenses (2,976) (2,810) (2,668) (8,608) (8,324)
Income (loss) before income taxes 1,624 (1,479) (841) 1,504 2,690
Income tax (expense) benefit (601) 615 293 (557) (1,159) Net income
(loss) $1,023 $(864) $(548) $947 $ 1,531 Selected Production
Information: Dollar value of auto installment contracts purchased
$147,521 $144,785 $69,474 $407,185 $214,658 Number of auto
installment contracts purchased 6,281 6,089 2,364 17,071 7,154
Average balance of auto installment contracts purchased $23.5 $23.8
$29.4 23.9 $30.0 Weighted- average contract rate 9.04% 8.88% 8.06%
8.78% 7.94% Average FICO credit score 734 734 742 736 736 Selected
Credit Quality Information: Net chargeoffs on managed contracts for
period $1,544 $1,525 $1,409 $4,713 $4,838 Net chargeoffs as a
percentage of average managed contracts (annualized) 0.85% 0.92%
1.01% 0.95% 1.15% Contracts delinquent 30 days or more as a
percentage of managed contracts (as of period-end) 0.62% 0.40%
0.30% 0.62% 0.30% Average Managed Contracts $727,125 $660,429
$557,744 $661,917 $561,332 At At At September 30, December 31,
September 30, 2005 2004 2004 (Dollars in thousands) Managed
Contracts (period-end): Total outstanding managed contracts
$743,640 $570,864 $ 556,802 Total number of contracts 36,527 28,300
28,146 Other Data: Full-time equivalent employees 90 104 101
DATASOURCE: Bay View Capital Corporation CONTACT: John Okubo,
+1-650-294-7778, for Bay View Capital Corporation Web site:
http://www.bayviewcapital.com/
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