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
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
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
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>.
Greater Bay Bancorp
David L. Kalkbrenner, 650/614-5767
Steven C. Smith, 650/813-8222
Silverman Heller Associates
Philip Bourdillon / Eugene Heller, 310/208-2550
#### Press Release ############
Other information can be found here:
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