|
|
Matsco---Greater Bay Bank to Make Announcement July 23 by Christopher Menkin In early May, 2003, Matt Shieman, President told Leasing
News he would make a statement regarding the apparent cut back of programs,
particularly closing the broker division and letting credit people go. Supposedly he would send word on May 12th,
but then changed his mind. He
asked us to wait thirty days.
http://www.leasingnews.org/pictures_past/past_05-16-03.htm There were rumors about the loss of $8 million in an ATM
portfolio and financial questions in the broker division. A key employee in the dental division, Hy Bren, retired. Other changes were
being made. One of the questions concerned the “good will” portion and
perhaps the ramification of the “cure agreement”, which Greater Bay
Bank had entered into with the Federal Reserve Board. Leasing News tried to reach Mr. Shieman for a comment today,
but the telephone call was not returned. The point being perhaps from Paul Menzel in stating his relationship with Santa Barbara Bank & Trust, where he said,” The
key is your source of funds; that you are hooked up to the right horse.
Management of the bank has sensible expectations. It has been the expectations
and demands of other leasing management that has led to may leasing
company’s demise. We have the right horse here.” The comments may be appropriate to Matt Shieman at Greater
Bay Bank, and perhaps also to Dwight Galloway at Republic Leasing of
South Carolina. Here are two well regarded leaders in the industry and they can
“ride.” But---- From the bank’s year-end financial statement footnotes: “ On November 30,2000, we completed the acquisition of The
Matsco Companies, Inc. for a purchase price of $6.5 million in cash. We may also be required to pay future contingent
cash payment of up to $6.0million based on the performance of Matsco
subsequent to the acquisition. The
acquisition was accounted for using the purchase method of accounting
and, accordingly The Matsco Companies, Inc.’s results of operations
have been included the consolidated financials statement since the date
of acquisition. The source of funds for the acquisition was our available
cash. “ We have allocated the purchase price for the Matsco Companies,
Inc. to the assets acquired and liabilities assumed based on the on
the estimated fair values at the date of acquisition. ( Here is a major
point. editor) “The excess of purchase price over the estimated fair values
of the net assets acquired, totaling $15.9 million, was record as goodwill,
and through December 31,2001 amortized on the straight-line method over
20 years. Goodwill is evaluated
annually for possible impairment under the provision of SFAS No. 142.
( the statement continues: “ Based upon our evaluation, as of December 31,2002, no impairment
exists.” “Pro forma financial information for the CAPCO and Matsco
acquisitions have not been provided, as these are not deemed to be significant
subsidiaries as defined by the Securities and Exchange Commission.” It was this financial statement that an “impairment” was
declared, primarily it seems on real estate, mortgage, and other evaluations,
especially on the San Francisco Peninsula, the heart of Silicon Valley,
where the commercial real estate market is “depressed” and unemployment
in Santa Clara County itself is an official 8.5%. In addition to the notice
dated that Greater Bay Bank had completed “the terms and conditions
of the cure agreement” a week in advance,
another note was filed on July 14th and posted yesterday regarding the consent to statements relating to the consolidated
financial statements by PricewaterhouseCoopers, LLP. The actual press release: #### Press release ######################################### A press release outlining the second quarter financial
results will be distributed at 3:30 a.m. PDT on July 23, 2003. The conference
call will begin at 8:00 a.m. PDT on July 23, 2003, and will last for
approximately one hour. Investors have the opportunity to listen to the conference
call live over the Internet at <http://www.companyboardroom.com>.
Investors should go to the Company Boardroom web site 15 minutes prior
to the start of the call, as it may be necessary to download audio software
to hear the conference call. To do so, investors should click on the
Windows Media Player icon at the bottom of the page and follow directions
from there. A replay of the conference call will be available on the
Company Boardroom web site. A telephone replay will also be available
beginning at 11 a.m. PDT on July 23 through midnight on July 30, 2003,
by dialing 800-642-1687 or 706-645-9291 and providing Conference ID
1572019. Greater Bay Bancorp, through its eleven subsidiary banks,
Bank of Petaluma, Bank of Santa Clara, Bay Area Bank, Bay Bank of Commerce,
Coast Commercial Bank, Cupertino National Bank, Golden Gate Bank, Mid-Peninsula
Bank, Mt. Diablo National Bank, Peninsula Bank of Commerce and San Jose
National Bank, along with its operating divisions, serves clients throughout
Silicon Valley, San Francisco, the San Francisco Peninsula, the East
Bay Region, the North Bay Region and the Central Coastal Region. ABD
Insurance and Financial Services, a wholly owned subsidiary of Greater
Bay Bancorp, provides commercial insurance brokerage, employee benefits
consulting and risk management solutions to business clients throughout
the United States. . For additional information and press releases about Greater
Bay Bancorp, visit the Company's web site at <http://www.gbbk.com>. Contact: Greater Bay Bancorp David L. Kalkbrenner, 650/614-5767 Steven C. Smith, 650/813-8222 or Silverman Heller Associates Philip Bourdillon / Eugene Heller, 310/208-2550 #### Press Release ############ Other information can be found here: http://biz.yahoo.com/djus/030630/0830000533_2.html http://finance.yahoo.com/q?s=GBBK&d=t http://table.finance.yahoo.com/k?s=gbbk&g=d http://www.gbbk.com/banks/banks.html Please send to a colleague as we are trying to build our
readership.
|
|
