UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant To Section 13 Or 15(d) Of
The Securities Exchange Act Of 1934
Date Of Report: July 20, 2001
(Date Of Earliest Event Reported)
MONTEREY BAY BANCORP, INC.
(Exact Name Of Registrant As Specified In Its Charter)
DELAWARE 77-0381362
(State Or Other Jurisdiction Of (I.R.S. Employer Identification
Incorporation Or Organization) Number)
Commission File Number: 0-24802
567 Auto Center Drive, Watsonville, California 95076
(Address Of Principal Executive Offices)(Zip Code)
(831) 768 - 4800
(Registrant's Telephone Number, Including Area Code)
WWW.MONTEREYBAYBANK.COM
(Registrant's Internet Site)
INFO@MONTEREYBAYBANK.COM
(Registrant's Electronic Mail Address)
1
Item 5. Other Events
On July 20, 2001, Monterey Bay Bancorp, Inc. ("Registrant" and "Company")
issued a press release that announced:
o financial and operating results for the three and six month periods ended
June 30, 2001
o the hiring of a new Senior Vice President for the Company's wholly owned
subsidiary, Monterey Bay Bank
o the continuing arbitration of claims by a former executive
Item 7. Financial Statements and Exhibits
(c) Exhibits
The following Exhibits are filed as part of this Report:
99.1 Press Release dated July 20, 2001.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Monterey Bay Bancorp, Inc.
(Registrant)
Date: July 20, 2001 By: /s/ C. Edward Holden
--------------------
C. Edward Holden
Chief Executive Officer
President
Vice Chairman Of The Board Of Directors
Date: July 20, 2001 By: /s/ Mark R. Andino
------------------
Mark R. Andino
Chief Financial Officer
Treasurer
(Principal Financial & Accounting Officer)
3
EXHIBIT INDEX
Exhibit Number Exhibit
-------------- -------
Exhibit 99.1 Press Release Dated July 20, 2001
4
Exhibit 99.1
July 20, 2001
FOR IMMEDIATE RELEASE
---------------------
MONTEREY BAY BANCORP, INC. ANNOUNCES:
SECOND QUARTER AND YEAR TO DATE 2001 RESULTS;
HIRING OF A SENIOR EXECUTIVE FOR MONTEREY BAY BANK;
CONTINUING ARBITRATION OF CLAIMS BY A FORMER EXECUTIVE
Common Stock Symbol: MBBC
NASDAQ National Market
Watsonville, CA. July 20, 2001. Monterey Bay Bancorp, Inc. ("Company"),
the holding company for Monterey Bay Bank ("Bank"), today reported net income of
$949 thousand, equivalent to $0.29 diluted earnings per share, for the quarter
ended June 30, 2001, compared to net income of $554 thousand, or $0.18 diluted
earnings per share, for the same period in 2000. Net income during the quarter
ended March 31, 2001 (the immediately preceding quarter) was $602 thousand,
equivalent to $0.18 diluted earnings per share.
For the six months ended June 30, 2001, net income was $1.6 million,
equivalent to $0.47 diluted earnings per share. This compares to net income of
$1.4 million, or $0.43 diluted earnings per share, for the first six months of
2000. Net income during the first half of 2001 was impacted by (pre-tax)
operating costs for the conversion of the Company's core data processing system
($447 thousand) and legal expenses associated with the arbitration of claims by
a former executive ($161 thousand).
During the second quarter of 2001, the Company continued the
implementation of its strategic plan of transforming the Bank into a community
focused commercial bank serving the financial needs of consumers and businesses
throughout the Greater Monterey Bay Area. Key accomplishments during the second
quarter of 2001 included the expanded utilization of the new core data
processing system implemented in March, 2001, the hiring of several new
professional bankers, and the attainment of record levels of total assets,
loans, and deposits at June 30, 2001.
Net interest income increased from $4.6 million and $9.0 million during
the second quarter and first half of 2000, respectively, to $4.8 million and
$9.5 million during the same periods in 2001 primarily due to greater average
balances of interest earning assets and liabilities. The Company's ratio of net
interest income to average total assets was 3.79% and 3.81% for the three and
six months ended June 30, 2001, down from 3.85% and 3.86% during the same
periods in 2000. The Company's margins were impacted in the most recent quarter
by a shift in loan mix toward residential mortgages. Margins were also hampered
by the Company's offering higher than normal relative retail deposit pricing to
facilitate customer retention following the core systems conversion. In
addition, during the second quarter of 2001, the Company experienced difficulty
adjusting its NOW and Savings deposit rates at the same pace as the declines in
indices utilized for adjustable rate loans, as the NOW and Savings deposit rates
were already at low nominal levels.
The Company recorded a $300 thousand provision for loan losses during
the second quarter of 2001, down from $775 thousand during the second quarter of
2000. For the first six months of 2001, the Company recorded $800 thousand in
provisions for loan losses, compared to $1.0 million during the same period in
2000. The Company's ratio of loan loss reserves to loans outstanding increased
slightly from 1.35% at December 31, 2000 to 1.37% at June 30, 2001. No
recoveries were realized during the first half of 2001, and charge-offs during
the six month period totaled $26 thousand.
5
Monterey Bay Bancorp, Inc.
Press Release Page 2
July 20, 2001
The Company's management remains concerned about the negative impacts
upon the loan portfolio arising from the following factors:
o the California energy crisis, with effects upon the availability and price
of electricity, business costs, consumer spending and disposable income,
and the pace of economic activity in the State
o the financial difficulties experienced by many technology related companies
in the Silicon Valley area adjacent to the Bank's primary market areas
o the impact of lower technology stock prices on consumer spending,
liquidity, and investment, with a particular concern regarding the effects
on the demand and pricing for real estate in the Bank's primary market
areas
o the significant number of layoffs announced during the first half of 2001
by California companies, with a related rise in the rate of unemployment in
California
o the general reduction in national economic growth
The Company commenced a special credit review during the second quarter
of 2001 with the intent to identify significant credits that might be
particularly and materially adversely impacted by the California energy crisis.
This special review was in addition to the ongoing credit monitoring processes
conducted by the Company. To date, no loans have been identified as being
directly and materially adversely affected by the California energy crisis. The
Company has historically focused on real estate loans and has conducted only
limited lending to manufacturers and other industries with a significant rate of
energy utilization. The Company intends to continue this special credit review
during the third quarter of 2001. In addition, the Company now includes an
analysis of borrowers' exposure to energy availability and prices as part of its
underwriting process for new loans.
The Company is in the process of upgrading the backup electricity
generator at its main administrative office. The upgraded unit will have
sufficient capacity to power the entire building for up to several days, as
compared to the current generator that is primarily designed to support the
Company's computer servers and network. Through mid-July 2001, various factors
had favorably combined to limit electricity blackouts in California to
relatively few occurrences.
Non-accrual loans at June 30, 2001 totaled $1.1 million, down from $4.7
million at December 31, 2000. The payoff in full on two large non-accrual loans
in April 2001, as previously announced, accounted for most of the decline.
Non-accrual loans at June 30, 2001 were primarily comprised of delinquent
residential mortgages. The Company had no foreclosed real estate at June 30,
2001.
6
Monterey Bay Bancorp, Inc. Page 3
Press Release
July 20, 2001
The special residential loan pool that the Company purchased in 1998
has paid down significantly in recent months. This pool is comprised of loans
that present a borrower credit profile and / or a loan to value ratio outside of
(less favorable than) the Company's normal underwriting criteria. To mitigate
the credit risk for this portfolio, the Company obtained, at purchase, a
scheduled principal / scheduled interest loan servicing agreement from the
seller. This agreement also contains a guaranty by the seller to absorb any
principal losses on the portfolio in exchange for the seller's retention of a
portion of the loans' yield through loan servicing fees. While the seller has
met all its contractual obligations through June 30, 2001, the Company has
allocated certain reserves to this pool due to concerns regarding the potential
losses by the seller in honoring the guaranty, the present delinquency profile
of the pool, and the differential between loan principal balances and current
appraisals for foreclosed loans and loans in the process of foreclosure. The
original balance of the special residential loan pool in 1998 was $40.0 million,
which was paid down to $8.1 million at June 30, 2001. In late July, the Company
is scheduled to receive approximately $700 thousand in additional principal
repayments associated with June activity.
Non-interest income totaled $695 thousand and $1.3 million during the
three and six months ended June 30, 2001, comparing favorably to $583 thousand
and $1.1 million during the same periods in 2000.
Service charge income rose from $312 thousand and $592 thousand during
the three and six months ended June 30, 2000 to $473 thousand and $882 thousand
during the same periods in 2001. This increase in part resulted from the revised
fee and service charge schedule implemented with the new core processing system
in March, 2001. The Bank has also benefited from fees generated from an
additional remote ATM during the first six months of 2001 that was not in place
in the first half of the prior year. In addition, selected higher ATM fees and
increased debit card transaction volume contributed to a $44 thousand increase
in combined ATM and debit card fee income in the first six months of 2001 versus
the same period in 2000.
There were no sales of mortgage backed and investment securities during
the second quarter of 2001. During the second quarter of 2000, security sales
generated a pre-tax gain of $2 thousand. For the six months ended June 30, 2001,
security sales produced a pre-tax gain of $34 thousand, versus a pre-tax loss of
$77 thousand during the first half of 2000. Although many of the Company's
securities appreciated during the second quarter of 2001 in conjunction with
interest rate cuts implemented by the Federal Reserve, management decided to
retain the securities as a means of generating net interest income.
Loan servicing income totaled $41 thousand and $43 thousand during the
three and six months ended June 30, 2001, compared to $24 thousand and $61
thousand during the same periods in 2000. The Company continues to sell the vast
majority of its long term, fixed rate residential loan production into the
secondary market on a servicing released basis. As a result, the portfolio of
loans serviced for others is declining as loans pay off. At June 30, 2001, the
Company serviced $51.0 million in various types of loans for other investors,
compared to $62.0 million at December 31, 2000.
During the second quarter of 2001, the Company continued the revamping
of its non-FDIC insured investment sales program to improve franchise value and
better integrate this operation with the overall strategic plan. Staffing
changes contributed to commissions from the sale of annuities, mutual funds,
insurance, and individual securities declining from $183 thousand and $390
thousand during the three and six months ended June 30, 2000 to $71 thousand and
$188 thousand during the same periods in 2001. Commission revenue during the
third quarter of 2001 is anticipated to be below the similar period in 2000.
Revenue from the sale of non-FDIC insured investments has also been hampered
during the first half of 2001 versus the same period in the prior year by less
favorable capital market conditions.
7
Monterey Bay Bancorp, Inc. Page 4
Press Release
July 20, 2001
Non-interest expense totaled $3.5 million and $7.4 million for the
three and six months ended June 30, 2001, compared to $3.4 million and $6.7
million for the same periods in 2000. Total non-interest expense in 2001 has
been increased by costs for the data processing conversion ($447 thousand) and
legal expenses associated with the arbitration of claims by a former executive
($161 thousand). Costs for the data processing conversion included deconversion
fees to the prior service bureau, printing and postage costs for additional
customer communications, employee training and travel costs, and consulting fees
for technology professionals retained to assist with and speed the
implementation of the new system.
During the first half of 2001, the Company has adjusted its staffing to
advance the strategic plan. During 2001, the Bank has added an additional
commercial loan officer and hired three new professional bankers. Staffing has
increased in the data processing function, coincident with the Company's
shifting from an external service bureau to in-house data processing. The change
in the Company's systems environment also impacted various other operating
expenses. Data processing fees were much lower in the second quarter of 2001
than the same period in 2000, while equipment expense was higher due to the
added depreciation from the new hardware and software installed in 2001. In
addition to the aforementioned increase in non-interest income, the Company's
new client-server technology platform, combined with the associated product
redesign, has fostered various operating efficiencies, including reduced costs
for customer statements, certificate of deposit maturity notices, and certain
electronic transaction processing.
Advertising and promotion costs were lower in the three and six months
ended June 30, 2001 than during the same periods the prior year. This stemmed
from the Company's awaiting the completion of the systems conversion and product
redesign prior to conducting extensive advertising. By mid-2001, however, the
Bank had commenced a significant local radio advertising campaign focused on
building customer relationships and centered about the theme "Monterey Bay Bank.
Expect More. Get The Best."
Total assets increased from $486.2 million at December 31, 2000 to a
record $518.8 million at June 30, 2001.
Cash & cash equivalents decreased from $25.2 million at December 31,
2000 to $11.2 million at June 30, 2001 due to the Company's increased investment
in the loan portfolio, including significant credit originations and asset
purchases at the end of the second quarter.
Investment and mortgage backed securities decreased from $50.3 million
at December 31, 2000 to $45.9 million at June 30, 2001. During the second
quarter of 2001, the Company utilized cash flows from prepayments on mortgage
related securities to fund the expansion in the loan portfolio. No securities
were purchased during the three months ended June 30, 2001.
Loans held for sale totaled $383 thousand at June 30, 2001. The
Company's pace of mortgage banking activity has accelerated in 2001 in
conjunction with the Federal Reserve's six interest rate cuts and declines in
mortgage rates from their levels of one year ago, generating borrower impetus to
refinance. The Company sells most of its long term, fixed rate residential
mortgage production into the secondary market on a servicing released basis.
Gains on the sale of loans originated for sale totaled $29 thousand during the
first half of 2001, compared to $11 thousand during the first six months of
2000. The Company sells its long term, fixed rate residential mortgages and
purchases more interest rate sensitive loans as part of its interest rate risk
management program.
8
Monterey Bay Bancorp, Inc. Page 5
Press Release
July 20, 2001
Loans held for investment, net, increased from $391.8 million at
December 31, 2000 to a record $441.1 million at June 30, 2001. The increase
resulted from a combination of strong internal loan originations and from pool
purchases of various types of California real estate loans. Net loans as a
percentage of total assets increased from 80.6% at December 31, 2000 to 85.1% at
June 30, 2001, in conjunction with the Company's strategy supporting its
interest margin, fostering economic activity in its local communities, and
effectively utilizing the Bank's capital. However, because $21.4 million in loan
pool purchases were funded in June 2001, the Company generated only limited net
interest income from such during the second quarter.
Even with the strong second quarter 2001 loan production, the Company's
pipeline at June 30, 2001 remained at a historically high level, including $35.0
million in outstanding firm loan commitments by the Bank, portending additional
loan portfolio expansion during the third quarter of 2001. The pipeline at June
30, 2001 included a number of commercial credits, as the Company has continued
to gradually expand its lending to local businesses in conformity with its
strategic plan. Commercial loans represented 1.3% of gross loans at June 30,
2001.
The Company reversed its long term loan portfolio diversification away
from residential mortgages during the first half of 2001, in part due to
management's concerns about the near term status of the California economy in
general and construction lending in particular. Residential mortgages comprised
43.4% of gross loans at June 30, 2001, up from 37.8% at December 31, 2000. In
contrast, construction loans declined from 13.9% of gross loans at December 31,
2000 to 10.0% of gross loans at June 30, 2001.
Premises and equipment, net, increased from $7.4 million at December
31, 2000 to $7.9 million at June 30, 2001 primarily due to hardware and software
purchases in support of the new core processing system.
Deposits increased from $407.8 million at December 31, 2000 to $418.3
million at June 30, 2001, with the increase concentrated in certificates of
deposit. Following the computer systems conversion, the Company experienced an
increase in the rate of deposit account closures, with the account closures
concentrated in lower balance accounts that are now subject to service charges
in conjunction with a new fee and service charge schedule implemented with the
computer systems conversion. Net transaction account generation was also slowed
during the second quarter of 2001, as the Company adjusted its fees and
practices to address competitive conditions and operational issues that stemmed
from the new data processing environment.
Borrowings increased from $32.6 million at December 31, 2000 to $51.8
million at June 30, 2001. During 2001, the Company has utilized FHLB advances to
fund some of the expansion in the loan portfolio. All of the Company's FHLB
advances at June 30, 2001 were fixed rate, fixed term borrowings without call or
put option features.
Monterey Bay Bank continues to be in the highest regulatory capital
classification of "Well Capitalized". The Bank remains well in excess of the
institution specific regulatory capital requirements imposed by the Office of
Thrift Supervision during the first quarter of 2000 in conjunction with the
special residential mortgage pool. To support the Bank's growth during the first
half of 2001, Monterey Bay Bancorp, Inc. downstreamed $300 thousand in capital
to Monterey Bay Bank during June, 2001.
9
Monterey Bay Bancorp, Inc. Page 6
Press Release
July 20, 2001
Consolidated stockholders' equity increased from $43.8 million at
December 31, 2000 to $47.1 million at June 30, 2001 due to a combination of net
income, continued amortization of deferred stock compensation, Directors
receiving their fees in Company stock, appreciation in the portfolio of
securities classified as available for sale, and the exercise of vested stock
options. The Company did not conduct any share repurchases during the first half
of 2001. The Company's tangible book value per share increased from $12.54 at
December 31, 2000 to $13.21 at June 30, 2001.
The Bank recently hired Susan M. Carlson as Senior Vice President and
Chief Administrative Officer. Ms. Carlson has over twenty years of banking
experience, and has previously served the Bank in a consulting capacity. In her
new position, Ms. Carlson will be responsible for the Bank's human resources,
training, facilities management, and marketing functions. Her position will
include tasks performed by the previous Director of Human Resources, who
resigned from the Bank during the second quarter of 2001.
The Company participated in binding arbitration during the second
quarter of 2001 to address claims by the former President and Chief Operating
Officer regarding payments due under his employment contracts. The arbitration
process will continue during the third quarter of 2001. In the third quarter of
2000, the Company established a $250 thousand reserve for the settlement of
these claims, exclusive of legal costs that are being recognized as incurred. At
this time, the Company, following consultation with counsel, believes this
reserve to be adequate to cover its liabilities in this regard.
In reviewing the most recent quarter, C. Edward Holden, Chief Executive
Officer & President, commented "The Company achieved a number of key objectives
during the second quarter of 2001. We improved our utilization of the new core
data processing system that was implemented at the end of the first quarter,
enhancing customer service and bolstering our internal efficiency. Our customers
will experience further benefits in coming months, as there are additional
features and technologies we have yet to implement. Our commercial banking
business expanded as we attracted a number of new customers who sought the type
of relationship banking approach that is the focus of our marketing efforts. We
hired several new professional bankers to augment our sales to doctors,
accountants, attorneys, and other professionals while also providing improved
service to our existing retail customers. In summary, it was an incredibly
active quarter as we accelerated the implementation of our strategic plan of
transforming the Company into a community based financial services firm."
Mr. Holden continued, "In light of the slowdown in the national and
California economies, the financial difficulties being experienced by segments
of the technology industry located adjacent to our primary market area, and the
uncertain impact of the California energy crisis, the Company increased its
focus on relatively lower risk residential lending during the second quarter of
2001. The Company's credit profile at June 30, 2001 was the most favorable its
has been in the past 18 months. While this shift in focus may restrain the
Company's margins in the short term, we believe maintaining a keen emphasis on
credit quality at this point in the economic cycle to be prudent management.
When the national and California economies rebound, the Company wants to be well
positioned to participate in and actively foster the prosperity and quality of
life in the Greater Monterey Bay Area. In that regard, the Company is
considering potential future sites for additional branches and stand alone
ATM's, in addition to an expansion in the scope of electronic financial services
offered."
10
Monterey Bay Bancorp, Inc. Page 7
Press Release
July 20, 2001
McKenzie Moss, Chairman of the Board of Directors, commented "The Board
of Directors, while somewhat pleased with the Company's improved earnings in
2001 versus the first half of 2000, acknowledges their job is to deliver a more
competitive return on stockholders' equity. Our transformation strategy has
commenced and is bearing economic fruit; however, additional investment will be
required to advance the implementation of the strategic plan. We appreciate the
support expressed by our customers and stockholders. Members of the Board
continue to receive retainer fees exclusively in MBBC common stock, one of many
ways to communicate our dedicated support for the Company and our alignment with
stockholder interests."
The Company's common stock is listed on the NASDAQ National Market
under the symbol "MBBC". The Company and the Bank are headquartered in
Watsonville, California. The Bank operates through its administrative offices in
Watsonville and eight full service branches located in the Greater Monterey Bay
Area of Central California. The Bank's deposits are insured by the Federal
Deposit Insurance Corporation up to the maximum allowed by law.
This news release contains certain forward-looking statements that are
subject to various factors that could cause actual results to differ materially
from such statements. Such factors include, but are not limited to, the
economic, business, and real estate market conditions in the Company's market
areas, competition, regulatory actions, the possibility that the Company will
not be successful in achieving its strategic objectives, the performance and
contributions of new employees, expected loan payments, the successful future
utilization and efficacy of new technology, the impact of the California energy
crisis, and other factors discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time. The Company 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.
For further information contact:
--------------------------------
C. Edward Holden Mark R. Andino
Chief Executive Officer or Chief Financial Officer
(831) 768 - 4840 (831) 768 - 4806
ed.holden@montereybaybank.com mark.andino@montereybaybank.com
General communication:
----------------------
INFO@MONTEREYBAYBANK.COM
www.montereybaybank.com
Phone: (831) 768-4800
Fax: (831) 722-6794
--- financial data follows ---
11
MONTEREY BAY BANCORP, INC.
Consolidated Financial Highlights
Unaudited
(Dollars In Thousands Except Per Share Amounts)
June 30, December 31,
Financial Condition Data 2001 2000
------------------------------------------------------ ---- ----
Cash and cash equivalents $ 11,150 $ 25,159
Investment and mortgage backed securities available for sale 45,889 50,310
Loans held for sale 383 --
Loans receivable held for investment:
Residential one to four unit real estate loans 202,650 160,155
Multifamily five or more units real estate loans 88,442 76,727
Commercial and industrial real estate loans 103,890 102,322
Construction loans 46,613 59,052
Land loans 13,097 16,310
Other loans 12,455 9,379
--------- ---------
Sub-total gross loans held for investment 467,147 423,945
(Less) / Plus:
Undisbursed construction loan funds (19,928) (26,580)
Unamortized purchase premiums, net of purchase discounts 205 21
Deferred loan fees and costs, net (158) (202)
Allowance for loan losses (6,138) (5,364)
--------- ---------
Loans receivable held for investment, net 441,128 391,820
Investment in capital stock of the Federal Home Loan Bank 2,981 2,884
Accrued interest receivable 3,126 2,901
Premises and equipment, net 7,870 7,375
Core deposit intangibles, net 1,854 2,195
Real estate acquired via foreclosure, net -- --
Other assets 4,416 3,546
--------- ---------
Total assets $ 518,797 $ 486,190
========= =========
Non-interest bearing demand deposits $ 20,248 $ 17,065
Interest bearing NOW checking accounts 41,505 41,859
Savings accounts 19,998 16,503
Money market accounts 85,151 87,651
Certificates of deposit 251,437 244,710
--------- ---------
Total deposits 418,339 407,788
Borrowings 51,766 32,582
Other liabilities 1,548 1,983
--------- ---------
Total liabilities 471,653 442,353
--------- ---------
Stockholders' equity 47,144 43,837
--------- ---------
Total liabilities and stockholders' equity $ 518,797 $ 486,190
========= =========
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
Operating Data 2001 2000 2001 2000
------------------------------------------------------ ---- ---- ---- ----
Interest income $ 9,710 $ 9,411 $ 19,705 $ 18,461
Interest expense 4,937 4,859 10,180 9,417
--------- --------- --------- ---------
Net interest income before provision for loan losses 4,773 4,552 9,525 9,044
Provision for loan losses 300 775 800 1,025
--------- --------- --------- ---------
Net interest income after provision for loan losses 4,473 3,777 8,725 8,019
Non-interest income 695 583 1,339 1,084
Non-interest expense 3,520 3,369 7,363 6,706
--------- --------- --------- ---------
Income before income taxes 1,648 991 2,701 2,397
Provision for income taxes 699 437 1,150 1,044
--------- --------- --------- ---------
Net income $ 949 $ 554 $ 1,551 $ 1,353
========= ========= ========= =========
Shares applicable to basic earnings per share 3,262,003 3,075,153 3,244,622 3,106,789
Basic earnings per share $ 0.29 $ 0.18 $ 0.48 $ 0.44
========= ========= ========= =========
Shares applicable to diluted earnings per share 3,300,595 3,076,403 3,287,577 3,113,614
Diluted earnings per share $ 0.29 $ 0.18 $ 0.47 $ 0.43
========= ========= ========= =========
12
MONTEREY BAY BANCORP, INC.
Selected Ratios And Other Data
Unaudited
(Dollars In Thousands)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2001 2000 2001 2000
---- ---- ---- ----
Profitability Ratios
------------------------------------------
Return on average assets 0.75% 0.47% 0.62% 0.58%
Return on average equity 8.14% 5.57% 6.84% 6.81%
Interest rate spread during the period 3.62% 3.59% 3.64% 3.61%
Net interest income / average total assets 3.79% 3.85% 3.81% 3.86%
Net interest margin 4.01% 4.02% 4.02% 4.04%
Efficiency ratio 64.37% 65.61% 67.78% 66.21%
Other Information
------------------------------------------
Average total assets $ 503,666 $ 473,461 $ 499,905 $ 468,076
Average interest earning assets 476,385 452,481 473,482 $ 447,511
At At
June 30, December 31,
2001 2000
---- ----
Asset Quality Information
------------------------------------------
Non-accrual loans $ 1,070 $ 4,666
Non-performing loans 1,070 4,741
Real estate acquired via foreclosure -- --
Allowance for loan losses 6,138 5,364
Allowance for loan losses / loans outstanding 1.37% 1.35%
Allowance for loan losses / non-accrual loans 573.64% 114.96%
Bank Regulatory Capital Ratios
------------------------------------------
Tangible capital ratio 7.97% 8.03%
Core capital ratio 7.97% 8.03%
Tier one risk based capital ratio 10.88% 11.03%
Total risk based capital ratio 12.14% 12.28%
Other Information
------------------------------------------
Full-service customer facilities 8 8
Number of ATM's 11 11
Loan to deposit ratio 105.54% 96.08%
Tangible book value per share $13.21 $12.54
Shares outstanding 3,428,440 3,321,210
13