GBBK Global Blockchain Acquisition Corporation

Greater Bay Bancorp (Nasdaq:GBBK), a $7.4 billion in assets financial services holding company, today announced results for the first quarter of 2007. For the first quarter of 2007, the Company�s net income was $17.8 million, or $0.31 per diluted common share, compared to $26.2 million, or $0.46 per diluted common share, for the first quarter of 2006, and $18.8 million, or $0.33 per diluted common share, for the fourth quarter of 2006. Operating results for the quarter included notable expenses of $1.5 million in professional services associated with the Company�s previously announced strategic planning project and $0.7 million of pension-related expenses. These expenses were offset by a $1.5 million mark-to-market gain in the value of the Company�s venture capital and equity securities. Additionally, also included in the operating results for the first quarter were expenses related to prior periods of $1.4 million in compensation expense and $0.4 million in tax expense. These errors were immaterial to the prior periods as well as to the current period and accordingly, were corrected in the current quarter. For the first quarter of 2007, the Company�s return on average common equity, annualized, was 9.65% compared to 15.62% for the first quarter of 2006, and 10.03% for the fourth quarter of 2006. Return on average assets, annualized, for the first quarter of 2007 was 0.98% compared to 1.49% for the first quarter of 2006, and 1.00% for the fourth quarter of 2006. Commenting on the quarter Byron A. Scordelis, President and Chief Executive Officer of Greater Bay Bancorp, stated, �While the size of our loan portfolio was relatively flat due to faster-than-expected pay downs in the construction lending area, our specialty finance business once again delivered solid high-quality growth. We sustained our core deposit totals after posting an annualized gain of more than 15% in the prior quarter, and our insurance brokerage business achieved net new business inflow that effectively neutralized declining premium levels. We are also pleased with the sustained strength of our credit metrics as well as with our realization of measurable operating cost control given the three particular expense items noted above.� Net Interest Income and Margin Net interest income for the first quarter of 2007 decreased to $59.9 million from $66.9 million in the first quarter of 2006, and from $63.9 million in the fourth quarter of 2006. The net interest margin (on a fully tax-equivalent basis) for the first quarter of 2007 was 3.78%, compared to 4.37% for the first quarter of 2006 and 3.91% for the fourth quarter of 2006. �The quarterly margin decline primarily reflects continued increase in customer deposit costs and a gradual balance shift away from non-interest-bearing demand deposits,� stated James S. Westfall, Executive Vice President and Chief Financial Officer. Non-Interest Income Non-interest income for the first quarter of 2007 decreased modestly to $58.5 million compared to $58.8 million in the first quarter of 2006. First quarter 2007 results compared to first quarter 2006 included an increase of $1.5 million in mark-to-market gains on venture capital and equity securities and a decrease of $0.7 million in ABD revenues. Non-interest income for the first quarter of 2007 increased to $58.5 million compared to $51.6 million in the fourth quarter of 2006. The $6.9 million increase was primarily attributable to a $5.2 million increase in insurance commissions and fees reflecting normal first quarter seasonality and a $2.7 million increase in mark-to-market gains in our venture capital and equity securities. Non-interest income as a percentage of total revenues for the first quarter of 2007 was 49.4%, compared to 46.8% for the first quarter of 2006 and 44.7% for the fourth quarter of 2006. Operating Expenses Operating expenses for the first quarter of 2007 increased modestly to $90.7 million from $90.5 million in the first quarter of 2006. First quarter 2007 operating expenses included $1.5 million for professional services associated with the Company�s previously announced strategic planning project, $0.7 million in pension related expenses, and $1.4 million in compensation expense related to prior periods. Operating expenses for the first quarter of 2007 increased to $90.7 million from $88.0 million in the fourth quarter of 2006. This increase was primarily attributable to an increase of $3.5 million in compensation and benefits, including first quarter seasonal increases in payroll taxes and 401(k) matching contribution expenses of $2.7 million and $1.4 million of compensation expense related to prior periods. This was partially offset by a decrease of $0.7 million in occupancy and equipment costs. Income Taxes The Company�s effective tax rate was 38.3% for the first quarter of 2007 compared to 36.5% for the first quarter of 2006. Approximately 150 basis points of the rate increase was due to $0.4 million of income tax expense related to prior periods. The Company adopted FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" or FIN 48 effective January 1, 2007 and as a result recognized a $4.5 million reserve addition for uncertain tax positions which was recorded as a reduction to retained earnings as of January 1, 2007, and had no effect on net income. Credit Quality Overview Net loan charge-offs in the first quarter of 2007 were $1.1 million, or 0.09% of average loans, annualized, compared to $43,000, or less than 0.01% of average loans, annualized, for the first quarter of 2006 and $3.2 million, or 0.26% of average loans, annualized, for the fourth quarter of 2006. Provision for credit losses was a negative $1.1 million for the first quarter of 2007, compared to a negative $6.0 million for the first quarter of 2006, and a negative $0.4 million for the fourth quarter of 2006. Non-performing assets were $32.1 million at March 31, 2007, compared to $33.4 million at March 31, 2006 and $30.2 million at December 31, 2006. The ratio of non-performing assets to total assets was 0.43% at March 31, 2007, compared to 0.47% at March 31, 2006 and 0.41% at December 31, 2006. The ratio of non-accrual loans to total loans was 0.64% at March 31, 2007, compared to 0.70% at March 31, 2006 and 0.61% at December 31, 2006. Allowance for loan and lease losses was $66.0 million, or 1.35% of total loans, at March 31, 2007, compared to $74.6 million, or 1.58% of total loans, at March 31, 2006 and $68.0 million, or 1.39% of total loans, at December 31, 2006. �We are pleased with our quarterly results in virtually every key credit portfolio quality indicator,� commented Mr. Scordelis. �Our recording of a negative provision for the quarter is consistent with our negligible charge-off experience. We continue to adhere to a consistent and disciplined application of sound credit fundamentals, and believe that our results are reflective of that approach.� Balance Sheet At March 31, 2007, total assets were $7.4 billion, total net loans and leases were $4.9 billion, total securities were $1.4 billion, and total deposits were $5.3 billion. Total loans and leases, net of deferred costs and fees, were $4.9 billion at March 31, 2007, which represents an increase of $176.1 million, or 3.7%, compared to March 31, 2006. This growth reflects an increase of $253.0 million in commercial loans and leases and $28.7 million in commercial term real estate loans. These increases were partially offset by declines of $39.1 million in construction and land loans, $38.4 million in consumer and other loans, and $33.7 million in real estate other loans. Total loans and leases, net of deferred costs and fees, were unchanged between December 31, 2006 and March 31, 2007. Increases of $53.8 million in commercial loans and leases and $64.5 million in commercial term real estate loans were offset by decreases of $80.9 million in construction and land loans, $26.6 million in real estate other loans, $6.7 million in consumer and other loans and $5.3 million in residential mortgages. Securities totaled $1.4 billion as of March 31, 2007, compared to $1.5 billion at March 31, 2006 and $1.5 billion at December 31, 2006. Total deposits at March 31, 2007 were $5.3 billion, which represents an increase of $200.2 million, or 3.9%, compared to March 31, 2006, and an increase of $51.8 million compared to December 31, 2006. Core deposits (excluding institutional and brokered deposits) at March 31, 2007 were $4.3 billion, which represents a decrease of $204.9 million, or 4.6%, compared to March 31, 2006, and an increase of $11.7 million compared to December 31, 2006. Capital Overview The capital ratios of Greater Bay Bancorp and its subsidiary bank continue to comfortably exceed minimum well-capitalized guidelines established by bank regulatory agencies. The Company�s common equity to assets ratio was 10.13% at March 31, 2007, compared to 9.69% at March 31, 2006 and 9.99% at December 31, 2006. The Company�s tangible common equity to tangible assets ratio was 6.47% at March 31, 2007, compared to 5.84% at March 31, 2006 and 6.32% at December 31, 2006. Other Matters As a separate matter, the Company today announced that it has signed a definitive merger agreement with Wells Fargo & Company. Consummation of the merger is subject to shareholder and regulatory approvals and other customary closing conditions. About Greater Bay Bancorp Greater Bay Bancorp, a diversified financial services holding company, provides community banking services in the Greater San Francisco Bay Area through Greater Bay Bank, N.A.�s community banking organization, including Bank of Petaluma, Coast Commercial Bank, Golden Gate Bank, Mid-Peninsula Bank, Mt. Diablo National Bank, Peninsula Bank of Commerce and Santa Clara Valley National Bank. Nationally, Greater Bay Bancorp provides specialized leasing and loan services through its specialty finance group, which includes Matsco, Greater Bay Business Funding and Greater Bay Capital. ABD Insurance and Financial Services, the Company�s insurance brokerage subsidiary, provides commercial insurance brokerage, employee benefits consulting and risk management solutions to business clients throughout the United States. Safe Harbor Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to the Company�s current expectations regarding future operating results, net interest margin, net loan charge-offs, asset quality, level of loan loss provisions, growth in loans and deposits, ABD revenue growth and level of operating expenses. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions at the local, national and international levels and increased competition among financial service providers on the Company�s results of operations and the quality of the Company�s earning assets; (2) government regulation, including ABD�s receipt of requests for information from state insurance commissioners and subpoenas from state attorneys general related to the ongoing insurance industry-wide investigations into contingent commissions and override payments; and (3) the other risks set forth in the Company�s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006. Greater Bay 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 additional information and press releases about Greater Bay Bancorp, visit the Company�s website at http://www.gbbk.com. GREATER BAY BANCORP March 31, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars and shares in 000's, except per share data) � � � � � � � � � SELECTED QUARTERLY CONSOLIDATED OPERATING DATA: � First Quarter 2007 Fourth Quarter 2006 Third Quarter 2006 Restated(7) Second Quarter 2006 Restated(7) First Quarter 2006 Interest income $ 113,479� $ 116,308� $ 113,916� $ 108,321� $ 104,015� Interest expense 53,572� 52,419� 50,142� 42,487� 37,134� Net interest income before (reversal of) / provision for credit losses 59,907� 63,889� 63,774� 65,834� 66,881� (Reversal of) / provision for credit losses (1,073) (384) (443) (1,886) (6,004) Net interest income after (reversal of) / provision for credit losses 60,980� 64,273� 64,217� 67,720� 72,885� � Non-interest income: Insurance commissions and fees 43,898� 38,730� 41,757� 40,235� 44,600� Rental revenue on operating leases 4,322� 4,490� 4,632� 4,790� 4,950� Service charges and other fees 2,196� 2,324� 2,363� 2,368� 2,540� Loan and international banking fees 2,047� 1,980� 1,960� 1,718� 1,795� Income on bank owned life insurance 1,726� 2,003� 2,038� 1,922� 1,911� Trust fees 1,054� 1,138� 1,059� 1,127� 1,055� Other income 3,221� 908� 1,643� 4,610� 1,915� Total non-interest income 58,464� 51,573� 55,452� 56,770� 58,766� � Operating expenses: Compensation and benefits 58,762� 55,279� 52,548� 50,906� 57,556� Occupancy and equipment 10,751� 11,457� 11,896� 11,192� 11,322� Legal costs and other professional fees 4,123� 3,950� 5,074� 3,884� 3,753� Depreciation - operating leases 3,393� 3,503� 3,665� 3,917� 4,003� Amortization of intangibles 1,462� 1,507� 1,678� 1,689� 1,640� Other expenses 12,167� 12,281� 16,220� 11,387� 12,271� Total operating expenses 90,658� 87,977� 91,081� 82,975� 90,545� � Income before provision for income taxes and cumulative effect of accounting change 28,786� 27,869� 28,588� 41,515� 41,106� Provision for income taxes 11,027� 9,091� 10,076� 15,423� 15,006� Income before cumulative effect of accounting change 17,759� 18,778� 18,512� 26,092� 26,100� Cumulative effect of accounting change, net of tax (1) -� -� -� -� 130� Net income $ 17,759� $ 18,778� $ 18,512� $ 26,092� $ 26,230� � � � � � � � � � � � EARNINGS PER SHARE DATA: Net Income per common share before cumulative effect of accounting change (2) Basic $ 0.32� $ 0.34� $ 0.33� $ 0.48� $ 0.49� Diluted $ 0.31� $ 0.33� $ 0.32� $ 0.47� $ 0.46� � Net Income per common share after cumulative effect of accounting change (2) Basic $ 0.32� $ 0.34� $ 0.33� $ 0.48� $ 0.49� Diluted $ 0.31� $ 0.33� $ 0.32� $ 0.47� $ 0.46� � Weighted average common shares outstanding 50,488� 50,478� 50,423� 50,188� 49,802� Weighted average common & potential common shares outstanding 51,294� 51,180� 51,366� 51,173� 52,727� � GAAP ratios Return on quarterly average assets, annualized 0.98% 1.00% 1.00% 1.47% 1.49% Return on quarterly average common shareholders' equity, annualized 9.65% 10.03% 10.15% 14.85% 15.62% Return on quarterly average total equity, annualized 8.48% 8.81% 8.89% 12.95% 13.56% Net interest margin, annualized (3) 3.78% 3.91% 3.97% 4.26% 4.37% Operating expense ratio, annualized (4) 5.01% 4.71% 4.92% 4.66% 5.15% Efficiency ratio (5) 76.59% 76.20% 76.39% 67.68% 72.06% � NON-GAAP ratios Efficiency ratio (excluding ABD & other ABD expenses paid by holding company) (6) 72.92% 67.08% 69.63% 58.27% 66.35% � � � � � � (1) Effective January 1, 2006, the Company adopted SFAS No.123R, as a result of which the Company recognized a one-time cumulative adjustment, to record an estimate of future forfeitures on outstanding equity based awards for which compensation expense had been recognized prior to adoption. � � (2) The following table provides a reconciliation of income available to common shareholders. Additionally, the Company's outstanding convertible preferred stock was antidilutive for all periods presented. � Income before cumulative effect of accounting change as reported $ 17,759� $ 18,778� $ 18,512� $ 26,092� $ 26,100� Less: dividends on convertible preferred stock (1,831) (1,832) (1,832) (1,822) (1,832) Income available to common shareholders before cumulative effect of accounting change 15,928� 16,946� 16,680� 24,270� 24,268� Add: CODES interest and other related income/(loss), net of taxes -� -� -� -� 59� Income available to common shareholders before cumulative effect of accounting change 15,928� 16,946� 16,680� 24,270� 24,327� Cumulative effect of accounting change, net of tax -� -� -� -� 130� Income available to common shareholders after cumulative effect of accounting change $ 15,928� $ 16,946� $ 16,680� $ 24,270� $ 24,457� � Weighted average common shares outstanding 50,488� 50,478� 50,423� 50,188� 49,802� Weighted average potential common shares: Stock options 806� 702� 943� 985� 946� CODES due 2024 -� -� -� -� 1,979� Total weighted average common & potential common shares outstanding 51,294� 51,180� 51,366� 51,173� 52,727� � � (3) Net interest income (on a tax equivalent basis) for the period, annualized and divided by average quarterly interest earning assets for the period. � (4) Total operating expenses for the period, annualized and divided by average quarterly assets. � (5) Total operating expenses divided by total revenue (the sum of net interest income and non-interest income, excluding provision for credit losses). � (6) Total operating expenses less ABD operating expenses divided by total revenue less ABD revenue. The following table provides the information for calculating the efficiency ratio excluding ABD: Revenue (excluding ABD) $ 74,032� $ 75,911� $ 77,083� $ 82,180� $ 80,546� Operating expenses (excluding ABD & other ABD-related expenses) $ 53,990� $ 50,924� $ 53,670� $ 47,888� $ 53,441� � (7) Restated Q1 and Q2 2006 to reflect adoption of SEC Staff Accounting Bulletin No.108 effective January 1, 2006. GREATER BAY BANCORP March 31, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars in 000's) � � � � � � � � � SELECTED CONSOLIDATED FINANCIAL CONDITION DATA AND RATIOS: � Mar 312007 Dec 312006 Restated(6)Sep 302006 Restated(6)Jun 302006 Restated(6)Mar 312006 Cash and cash equivalents $ 139,083� $ 170,365� $ 160,572� $ 198,716� $ 167,203� Fed funds sold 161,000� -� -� 36,000� -� Securities 1,435,692� 1,543,097� 1,572,109� 1,565,732� 1,468,123� Loans and leases: Commercial 2,299,362� 2,245,549� 2,136,235� 2,072,334� 2,046,402� Term real estate - commercial 1,468,160� 1,403,631� 1,423,090� 1,394,518� 1,439,416� Total commercial 3,767,522� 3,649,180� 3,559,325� 3,466,852� 3,485,818� Real estate construction and land 649,009� 729,871� 753,416� 762,409� 688,086� Residential mortgage 274,329� 279,615� 277,038� 275,332� 271,658� Real estate other 146,697� 173,271� 163,077� 164,133� 180,409� Consumer and other 62,026� 68,698� 79,131� 101,821� 100,468� Deferred costs and fees, net 6,254� 5,206� 4,278� 4,066� 3,285� Total loans and leases, net of deferred costs and fees 4,905,837� 4,905,841� 4,836,265� 4,774,613� 4,729,724� Allowance for loan and lease losses (65,950) (68,025) (71,323) (71,689) (74,568) Total loans and leases, net 4,839,887� 4,837,816� 4,764,942� 4,702,924� 4,655,156� Goodwill 246,016� 246,016� 242,687� 243,343� 242,728� Other intangible assets 43,069� 42,978� 44,515� 46,227� 48,005� Other assets 517,581� 530,862� 554,985� 583,167� 533,366� Total assets $ 7,382,328� $ 7,371,134� $ 7,339,810� $ 7,376,109� $ 7,114,581� � Deposits: Demand, noninterest-bearing $ 953,808� $ 1,028,245� $ 980,050� $ 1,015,734� $ 1,004,575� MMDA, NOW and savings 2,679,239� 2,614,349� 2,613,387� 2,734,656� 2,957,354� Time deposits, $100,000 and over 911,915� 892,048� 784,557� 776,712� 782,891� Other time deposits 763,975� 722,541� 681,104� 495,131� 363,941� Total deposits 5,308,937� 5,257,183� 5,059,098� 5,022,233� 5,108,761� Other borrowings 791,670� 825,837� 994,044� 970,390� 750,248� Subordinated debt 180,929� 180,929� 180,929� 287,631� 210,311� Other liabilities 237,061� 254,812� 256,545� 268,899� 240,008� Total liabilities 6,518,597� 6,518,761� 6,490,616� 6,549,153� 6,309,328� � Minority interest: Preferred stock of real estate investment trust subsidiaries 12,902� 12,861� 12,821� 12,780� 12,739� � Convertible preferred stock 103,069� 103,094� 103,094� 103,096� 103,097� Common shareholders' equity (1) 747,760� 736,418� 733,279� 711,080� 689,417� Total share-holders' equity (1) 850,829� 839,512� 836,373� 814,176� 792,514� � � � � � Total liabilities and total equity $ 7,382,328� $ 7,371,134� $ 7,339,810� $ 7,376,109� $ 7,114,581� � � � � � � � � � RATIOS: � Loan growth, current quarter to prior year quarter 3.72% 3.76% 3.19% 0.72% 4.93% Loan growth, current quarter to prior quarter, annualized 0.00% 5.71% 5.12% 3.81% 0.15% Loan growth, YTD 0.00% 3.76% 3.06% 1.99% 0.15% � Core loan growth, current quarter to prior year quarter (2) 4.37% 4.45% 3.90% 1.32% 1.39% Core loan growth, current quarter to prior quarter, annualized (2) 0.34% 6.41% 5.91% 4.47% 0.66% Core loan growth, YTD (2) 0.34% 4.45% 3.73% 2.58% 0.66% � Deposit growth, current quarter to prior year quarter 3.92% 3.93% 0.87% 2.93% 2.26% Deposit growth, current quarter to prior quarter, annualized 3.99% 15.53% 2.91% -6.79% 4.03% Deposit growth, YTD 3.99% 3.93% 0.01% -1.45% 4.03% � Core deposit growth, current quarter to prior year quarter (3) -4.58% -6.79% -10.48% -6.63% -5.78% Core deposit growth, current quarter to prior quarter, annualized (3) 1.11% 15.29% -14.43% -19.72% -8.31% Core deposit growth, YTD (3) 1.11% -6.79% -13.71% -13.84% -8.31% � Revenue growth, current quarter to prior year quarter (4) -5.79% -4.38% -2.66% 2.46% 8.10% Revenue growth, current quarter to prior quarter, annualized (4) 10.22% -12.53% -10.93% -9.71% 16.43% � Net interest income growth, current quarter to prior year quarter -10.43% -5.69% -6.21% 0.63% 1.27% Net interest income growth, current quarter to prior quarter, annualized -25.28% 0.72% -12.41% -6.28% -5.18% � � � � � � (1) The Company adopted FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" or FIN 48 effective January 1, 2007 and as a result recognized a $4.5 million reserve for uncertain tax positions which was recorded as a reduction to the beginning balance of retained earnings as of January 1, 2007. � � (2) Core loans calculated as total loans less purchased residential mortgage loans. � � (3) Core deposits calculated as total deposits less institutional and brokered time deposits. � � (4) Revenue is the sum of net interest income before (reversal of) / provision for credit losses and total non-interest income. � � (5) Restated Q1, Q2 and Q3 2006 to reflect adoption of SEC Staff Accounting Bulletin No. 108 effective January 1, 2006. GREATER BAY BANCORP March 31, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars in 000's) � � � � � � � � � � � � SELECTED AVERAGE BALANCE SHEET AND YIELD DATA: � Three months ended March 31, 2007 December 31, 2006 Average balance (2) Interest Average yield / rate Average balance (2) Interest Average yield / rate Tax-Equivalent Basis (1) � � � � � INTEREST-EARNING ASSETS: Fed funds sold $ 63,223� $ 815� 5.23% $ 83,034� $ 1,098� 5.24% Securities: Taxable 1,441,326� 16,588� 4.67% 1,493,073� 17,358� 4.61% Tax-exempt (1) 92,071� 1,582� 6.97% 92,347� 1,595� 6.85% Other short-term (3) 8,424� 84� 4.03% 9,643� 90� 3.69% Loans and leases (4) 4,869,674� 94,910� 7.90% 4,850,605� 96,673� 7.91% Total interest-earning assets 6,474,718� 113,979� 7.14% 6,528,702� 116,814� 7.10% Noninterest-earning assets 866,562� -� 889,484� -� Total assets $ 7,341,280� 113,979� $ 7,418,186� 116,814� INTEREST-BEARING LIABILITIES: Deposits: MMDA, NOW and Savings $ 2,603,938� 18,810� 2.93% $ 2,611,369� 17,545� 2.67% Time deposits over $100,000 877,491� 10,881� 5.03% 827,608� 10,312� 4.94% Other time deposits 747,657� 9,072� 4.92% 727,388� 8,895� 4.85% Total interest-bearing deposits 4,229,086� 38,763� 3.72% 4,166,365� 36,752� 3.50% Short-term borrowings 369,591� 4,489� 4.93% 393,702� 4,873� 4.91% CODES -� -� 0.00% -� -� 0.00% Subordinated debt 180,929� 3,711� 8.32% 180,929� 3,768� 8.26% Other long-term borrowings 494,409� 6,609� 5.42% 526,025� 7,026� 5.30% Total interest-bearing liabilities 5,274,016� 53,572� 4.12% 5,267,021� 52,419� 3.95% Noninterest-bearing deposits 948,232� 1,021,175� Other noninterest-bearing liabilities 256,393� 271,643� Minority Interest: Preferred stock of real estate investment trust subsidiaries 12,876� 12,837� Shareholders' equity 849,763� � 845,510� � Total share-holders' equity and liabilities $ 7,341,280� 53,572� $ 7,418,186� 52,419� � Net interest income, on a tax-equivalent basis (1) 60,407� 64,395� � Net interest margin (5) 3.78% 3.91% � Reconciliation to reported net interest income: � Adjustment for tax-equivalent basis (500) (506) � Net interest income, as reported $ 59,907� $ 63,889� � � (1) Income from tax-exempt securities issued by state and local governments or authorities, is adjusted by an increment that equates tax-exempt income to tax equivalent basis (assuming a 35% federal income tax rate). (2) Nonaccrual loans are included in the average balance. (3) Includes average interest-earning deposits in other financial institutions. (4) Amortization of deferred costs and fees, net, resulted in an increase of interest income on loans by $592,000 and $674,000, for the three months ended March 31, 2007 and December 31, 2006, respectively. (5) Net interest margin during the period equals (a) the difference between tax-equivalent interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (b) average interest-earning assets for the period, annualized. GREATER BAY BANCORP March 31, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars in 000's) � � � � � � � � � � � � SELECTED AVERAGE BALANCE SHEET AND YIELD DATA: � Three months ended March 31, 2007 March 31, 2006 Average balance (2) Interest Average yield / rate Average balance (2) Interest Average yield / rate Tax-Equivalent Basis (1) � � � � � INTEREST-EARNING ASSETS: Fed funds sold $ 63,223� $ 815� 5.23% $ 12,290� $ 132� 4.34% Securities: Taxable 1,441,326� 16,588� 4.67% 1,425,340� 15,622� 4.45% Tax-exempt (1) 92,071� 1,582� 6.97% 82,596� 1,494� 7.33% Other short-term (3) 8,424� 84� 4.03% 9,762� 35� 1.46% Loans and leases (4) 4,869,674� 94,910� 7.90% 4,721,031� 87,220� 7.49% Total interest-earning assets 6,474,718� 113,979� 7.14% 6,251,019� 104,503� 6.78% Noninterest-earning assets 866,562� -� 885,077� -� Total assets $ 7,341,280� 113,979� $ 7,136,096� 104,503� INTEREST-BEARING LIABILITIES: Deposits: MMDA, NOW and Savings $ 2,603,938� 18,810� 2.93% $ 2,950,240� 14,072� 1.93% Time deposits over $100,000 877,491� 10,881� 5.03% 756,259� 7,321� 3.93% Other time deposits 747,657� 9,072� 4.92% 260,812� 2,368� 3.68% Total interest-bearing deposits 4,229,086� 38,763� 3.72% 3,967,311� 23,761� 2.43% Short-term borrowings 369,591� 4,489� 4.93% 288,491� 2,983� 4.19% CODES -� -� 0.00% 75,101� 101� 0.55% Subordinated debt 180,929� 3,711� 8.32% 210,311� 4,557� 8.79% Other long-term borrowings 494,409� 6,609� 5.42% 474,316� 5,732� 4.90% Total interest-bearing liabilities 5,274,016� 53,572� 4.12% 5,015,530� 37,134� 3.00% Noninterest-bearing deposits 948,232� 1,041,806� Other noninterest-bearing liabilities 256,393� 281,996� Minority Interest: Preferred stock of real estate investment trust subsidiaries 12,876� 12,715� Shareholders' equity 849,763� � 784,049� � Total share-holders' equity and liabilities $ 7,341,280� 53,572� $ 7,136,096� 37,134� � Net interest income, on a tax-equivalent basis (1) 60,407� 67,369� � Net interest margin (5) 3.78% 4.37% � Reconciliation to reported net interest income: � Adjustment for tax-equivalent basis (500) (488) � Net interest income, as reported $ 59,907� $ 66,881� � � (1) Income from tax-exempt securities issued by state and local governments or authorities, is adjusted by an increment that equates tax-exempt income to tax equivalent basis (assuming a 35% federal income tax rate). (2) Nonaccrual loans are included in the average balance. (3) Includes average interest-earning deposits in other financial institutions. (4) Amortization of deferred costs and fees, net, resulted in an increase of interest income on loans by $592,000 and $245,000 for the three months ended March 31, 2007 and March 31, 2006, respectively. (5) Net interest margin during the period equals (a) the difference between tax-equivalent interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (b) average interest-earning assets for the period, annualized. GREATER BAY BANCORP March 31, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars and shares in 000's, except per share data) � � � � � � � � � SELECTED CONSOLIDATED CREDIT QUALITY DATA: � Mar 312007 Dec 312006 Sep 302006 Jun 302006 Mar 312006 � � � � � Nonperforming assets Commercial: Matsco/GBC $ 9,160� $ 7,583� $ 8,323� $ 7,257� $ 8,011� SBA 6,456� 5,576� 2,881� 4,536� 3,627� Other 7,769� 8,486� 6,458� 4,775� 9,184� Total commercial 23,385� 21,645� 17,662� 16,568� 20,822� Real estate: Commercial 6,180� 7,173� 10,939� 14,763� 8,203� Construction and land 1,980� 930� 323� 323� 3,242� Other -� -� -� 3� 7� Total real estate 8,160� 8,103� 11,262� 15,089� 11,452� Consumer and other 74� 117� 139� 611� 718� Total nonaccrual loans 31,619� 29,865� 29,063� 32,268� 32,992� OREO -� -� -� -� -� Other nonperforming assets 435� 382� 603� 361� 438� Total non-performing assets $ 32,054� $ 30,247� $ 29,666� $ 32,629� $ 33,430� � Net loan charge-offs (recoveries) (1) $ 1,122� $ 3,192� $ 223� $ 2,662� $ 43� � Ratio of allowance for loan and lease losses to: End of period loans 1.35% 1.39% 1.48% 1.50% 1.58% Total nonaccrual loans 208.6% 227.8% 245.4% 222.2% 226.0% � Ratio of quarter (reversal of) / provision for credit losses to quarter average loans, annualized -0.09% -0.03% -0.04% -0.16% -0.52% � Total nonaccrual loans to total loans 0.64% 0.61% 0.60% 0.68% 0.70% Total nonperforming assets to total assets 0.43% 0.41% 0.40% 0.44% 0.47% � Ratio of quarterly net loan charge-offs to average loans, annualized 0.09% 0.26% 0.02% 0.23% 0.00% Ratio of YTD net loan charge-offs to YTD average loans 0.09% 0.13% 0.08% 0.12% 0.00% � � � � � � (1) Net loan charge-offs are loan charge-offs net of recoveries. Q3 2006 includes an insurance recovery of $1.6 million related to a previously charged-off loan. � � � � � � � � � � � � � � � � � � � � � SELECTED QUARTERLY CAPITAL RATIOS AND DATA: Mar 312007 Dec 312006 Sep 302006 Jun 302006 Mar 312006 � � � � � Tier 1 leverage ratio 10.92% 10.63% 10.63% 12.07% 10.77% Tier 1 risk-based capital ratio 12.61% 12.26% 12.15% 13.49% 12.48% Total risk-based capital ratio 13.79% 13.47% 13.40% 14.93% 13.73% Total equity to assets ratio 11.53% 11.39% 11.40% 11.04% 11.14% Common equity to assets ratio 10.13% 9.99% 9.99% 9.64% 9.69% � Tier I capital $ 769,415� $ 755,860� $ 748,071� $ 824,154� $ 734,692� Total risk-based capital $ 841,821� $ 830,461� $ 825,036� $ 911,802� $ 808,436� Risk weighted assets $ 6,103,632� $ 6,166,011� $ 6,155,489� $ 6,108,101� $ 5,889,032� � NON-GAAP RATIOS (1): � Tangible common equity to tangible assets (2) 6.47% 6.32% 6.32% 5.95% 5.84% Tangible common book value per common share (3) $ 8.99� $ 8.78� $ 8.74� $ 8.28� $ 7.93� � Common book value per common share (4) $ 14.65� $ 14.46� $ 14.36� $ 13.97� $ 13.71� Total common shares outstanding 51,044� 50,938� 51,047� 50,917� 50,288� � � � � � � (1) The following table provides a reconciliation of common equity to tangible common equity and total assets to tangible assets: � Common shareholders' equity $ 747,760� $ 736,418� $ 733,279� $ 711,080� $ 689,417� Less: goodwill and other Intangible assets (289,085) (288,994) (287,202) (289,570) (290,733) Tangible common equity $ 458,675� $ 447,424� $ 446,077� $ 421,510� $ 398,684� � Total assets $ 7,382,328� $ 7,371,134� $ 7,339,810� $ 7,376,109� $ 7,114,581� Less: goodwill and other intangible assets (289,085) (288,994) (287,202) (289,570) (290,733) Tangible assets $ 7,093,242� $ 7,082,140� $ 7,052,608� $ 7,086,539� $ 6,823,848� � � (2) Computed as common shareholders' equity, less goodwill and other intangible assets divided by tangible assets. � (3) Computed as common shareholders' equity, less goodwill and other intangible assets divided by total common shares outstanding. � (4) Computed as common shareholders' equity divided by common shares outstanding.