GBBK Global Blockchain Acquisition Corporation

Greater Bay Bancorp (Nasdaq:GBBK), a $7.3 billion in assets financial services holding company, today announced results for the second quarter of 2007 and six months ended June 30, 2007. For the second quarter of 2007, the Company�s net income was $17.5 million, or $0.35 per diluted common share, compared to $26.1 million, or $0.47 per diluted common share, for the second quarter of 2006, and $17.8 million, or $0.31 per diluted common share, for the first quarter of 2007. For the first six months of 2007, net income was $35.2 million, or $0.66 per diluted common share, compared to $52.3 million, or $0.94 per diluted common share, for the first six months of 2006. Operating results for the second quarter of 2007 included expenses of $2.1 million ($1.6 million after tax) for professional services associated with the Company�s proposed merger with Wells Fargo & Company and a write-off of $0.8 million ($0.5 million after tax) in capitalized debt issuance costs for a debt offering that was cancelled due to the proposed merger. On June 30, 2007, the Company redeemed its outstanding convertible Series B Preferred Stock with a carrying value of $102.6 million for $100.5 million. The $2.0 million (after tax) excess of the carrying value over the redemption value did not affect reported net income for the second quarter or the first six months of 2007, but is included in net income available to common shareholders for purposes of calculating net income per share amounts for the second quarter and the first six months of 2007. For the second quarter of 2007, the Company�s return on average common equity, annualized, was 9.29% compared to 14.85% for the second quarter of 2006, and 9.65% for the first quarter of 2007. Return on average common equity, annualized, for the first six months of 2007 was 9.47% compared to 15.79% for the same period in 2006. Return on average assets, annualized, for the second quarter of 2007 was 0.96% compared to 1.47% for the second quarter of 2006, and 0.98% for the first quarter of 2007. Return on average assets, annualized, was 0.97% for the first six months of 2007 compared to 1.49% for the same period in 2006. Net Interest Income and Margin Net interest income for the second quarter of 2007 decreased to $59.5 million from $65.8 million in the second quarter of 2006, and from $59.9 million in the first quarter of 2007. The net interest margin (on a fully tax-equivalent basis) for the second quarter of 2007 was 3.71%, compared to 4.26% for the second quarter of 2006 and 3.78% for the first quarter of 2007. The five basis point increase in the linked-quarter interest-earning asset yield was exceeded by a 12 basis point increase in the cost of interest-bearing liabilities, reflecting a continued deposit mix shift toward higher yielding products. Net interest income for the first half of 2007 decreased to $119.4 million from $132.7 million for the same period in 2006. The net interest margin (on a fully tax-equivalent basis) for the first six months of 2007 was 3.75% compared to 4.31% for the same period in 2006. Non-Interest Income Non-interest income for the second quarter of 2007 increased to $58.2 million compared to $56.8 million in the second quarter of 2006. The $1.4 million increase was due to increases of $3.3 million in insurance commissions and fees and $1.6 million in gains on deferred compensation investments, which were partially offset by a decrease of $3.8 million in mark-to-market gains on venture capital and equity securities. Non-interest income for the second quarter of 2007 remained relatively flat compared to the first quarter of 2007. Non-interest income in the first six months of 2007 increased to $116.7 million from $115.5 million in the first six months of 2006. The $1.2 million increase was due primarily to increases of $2.6 million in insurance commissions and fees and $1.5 million in gains on deferred compensation investments, which were partially offset by decreases of $1.7 million in mark-to-market gains on venture capital and equity securities and $1.2 million rental revenues on operating leases. Non-interest income as a percentage of total revenues for the second quarter of 2007 was 49.5%, compared to 46.3% for the second quarter of 2006 and 49.4% for the first quarter of 2007. Non-interest income as a percentage of total revenues for the first six months of 2007 was 49.4%, compared to 46.5% for the same period one year ago. Operating Expenses Operating expenses for the second quarter of 2007 increased $7.5 million to $90.5 million from $83.0 million in the second quarter of 2006. Second quarter 2007 operating expenses compared to second quarter 2006 included: Increase of $4.8 million in compensation expenses due mainly to increases in average salaries, bonus levels and share based compensation expense Increase of $1.2 million in legal costs and other professional fees primarily due to $2.1 million in professional services expense associated with the Company�s pending merger with Wells Fargo & Company, and Increase of $1.8 million in other expenses due principally to a $0.8 million write-off of debt issuance costs related to a cancelled debt offering. Operating expenses for the second quarter of 2007 decreased to $90.5 million from $90.7 million in the first quarter of 2007. Second quarter 2007 operating expenses compared to first quarter 2007 included: Decrease of $3.1 million in compensation and benefits due mainly to lower share based compensation expense of $1.2 million, lower payroll taxes of $1.2 million and lower 401(k) contribution expense of $0.9 million. Increase of $1.0 million in legal costs and other professional fees primarily due to merger related expenses Increase in other expenses related to the write-off of debt issuance costs Operating expenses in the first six months of 2007 increased to $181.1 million from $173.5 million in the first half of 2006. The first six months of 2007 operating expenses compared to the same period in 2006 included: Increase of $6.0 million in compensation expenses due mainly to increases in salaries of $1.1 million, bonus expense of $1.5 million and share based compensation expense of $2.6 million Increase of $1.6 million in legal costs and other professional fees due primarily to merger related costs and professional services associated with the Company�s previously announced strategic planning project Increase of $1.7 million in other expenses due mainly to the write-off of debt issuance costs related to a cancelled debt offering and $0.9 million in outsourced data processing fees. Income Taxes The Company�s effective tax rate was 36.6% for the second quarter of 2007 compared to 37.2% for the second quarter of 2006. The effective tax rate was 37.5% for the first six months of 2007 compared to 36.8% for the same period in 2006. Credit Quality Overview Net loan charge-offs in the second quarter of 2007 were $1.8 million, or 0.14% of average loans, annualized, compared to $2.7 million or 0.23% of average loans, annualized, for the second quarter of 2006 and $1.1 million, or 0.09% of average loans, annualized, for the first quarter of 2007. Net loan charge-offs in the first six months of 2007 were $2.9 million, or 0.12% of average loans, annualized, compared to $2.7 million or 0.12% for the same period in 2006. Provision for credit losses was a negative $0.4 million for the second quarter of 2007, compared to a negative $1.9 million for the second quarter of 2006, and a negative $1.1 million for the first quarter of 2007. The provision for credit losses for the first six months of 2007 was a negative $1.5 million, compared to a negative $7.9 million for the first six months of 2006. Non-performing assets were $24.4 million at June 30, 2007, compared to $32.6 million at June 30, 2006 and $32.1 million at March 31, 2007. The ratio of non-performing assets to total assets was 0.33% at June 30, 2007, compared to 0.44% at June 30, 2006 and 0.43% at March 31, 2007. The ratio of non-accrual loans to total loans was 0.48% at June 30, 2007, compared to 0.68% at June 30, 2006 and 0.64% at March 31, 2007. Allowance for loan and lease losses was $64.1 million, or 1.27% of total loans, at June 30, 2007, compared to $71.7 million, or 1.50% of total loans, at June 30, 2006 and $66.0 million, or 1.35% of total loans, at March 31, 2007. Balance Sheet At June 30, 2007, total assets were $7.3 billion, total net loans and leases were $5.1 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 $5.1 billion at June 30, 2007, which represents an increase of $277.6 million, or 5.8%, compared to June 30, 2006. This growth reflects an increase of $354.4 million, or 17.1%, in commercial loans and leases plus $97.7 million in commercial term real estate loans. These increases were partially offset by a decline of $106.0 million, or 13.9%, in construction and land loans plus $35.7 million in consumer and other loans, $19.7 million in real estate other loans and $16.9 million in residential mortgages. Total loans and leases, net of deferred costs and fees, were $5.1 billion at June 30, 2007, which represents an increase of $146.4 million, or 12.0% annualized, compared to March 31, 2007. This growth was most notable in commercial loans and leases, which increased by $127.4 million or an annualized rate of 22.2%. Additional increases in commercial term real estate loans of $24.1 million and in construction and land loans of $7.4 million were partially offset by a decline of $15.9 million in residential mortgage lending. Securities totaled $1.4 billion as of June 30, 2007, compared to $1.6 billion at June 30, 2006 and $1.4 billion at March 31, 2007. Total deposits at June 30, 2007 were $5.3 billion, which represents an increase of $277.2 million, or 5.5%, compared to June 30, 2006, and a decrease of $9.5 million compared to March 31, 2007. Core deposits (excluding institutional and brokered deposits) at June 30, 2007 were $3.9 billion, which represents a decrease of $321.4 million, or 7.6%, compared to June 30, 2006, and a decrease of $336.4 million compared to March 31, 2007. The majority of this core deposit outflow occurred in April, and is viewed in part as being a seasonal event, with other outflow occurring in the area of large specialty deposits which continued a trend noted in prior quarters. 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 10.32% at June 30, 2007, compared to 9.64% at June 30, 2006 and 10.13% at March 31, 2007. The Company�s tangible common equity to tangible assets ratio was 6.66% at June 30, 2007, compared to 5.95% at June 30, 2006 and 6.47% at March 31, 2007. 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, among other things, our pending merger with Wells Fargo & Company, 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; (3) failure to consummate our merger with Wells Fargo & Company as a result of the inability to satisfy a condition to close, including the inability to obtain requisite shareholder or governmental approval; and (4) 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, except as required by law. For additional information and press releases about Greater Bay Bancorp, visit the Company�s website at http://www.gbbk.com. GREATER BAY BANCORP JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars and shares in 000's, except per share data) � � � � � � � � � � SELECTED QUARTERLY CONSOLIDATED OPERATING DATA: Restated(6) Second First Fourth Third Second Quarter Quarter Quarter Quarter Quarter � 2007 � � 2007 � � 2006 � � 2006 � � 2006 � Interest income $ 115,255 $ 113,479 $ 116,308 $ 113,916 $ 108,321 Interest expense � 55,799 � � 53,572 � � 52,419 � � 50,142 � � 42,487 � Net interest income before (reversal of) / provision for credit losses 59,456 59,907 63,889 63,774 65,834 (Reversal of) / provision for credit losses � (418 ) � (1,073 ) � (384 ) � (443 ) � (1,886 ) Net interest income after (reversal of) / provision for credit losses 59,874 60,980 64,273 64,217 67,720 � Non-interest income: Insurance commissions and fees 43,541 43,898 38,730 41,757 40,235 Rental revenue on operating leases 4,215 4,322 4,490 4,632 4,790 Service charges and other fees 2,239 2,196 2,324 2,363 2,368 Loan and international banking fees 2,359 2,047 1,980 1,960 1,718 Income on bank owned life insurance 2,107 1,726 2,003 2,038 1,922 Trust fees 1,097 1,054 1,138 1,059 1,127 Other income � 2,633 � � 3,221 � � 908 � � 1,643 � � 4,610 � Total non-interest income 58,191 58,464 51,573 55,452 56,770 � Operating expenses: Compensation and benefits 55,709 58,762 55,279 52,548 50,906 Occupancy and equipment 11,319 10,751 11,457 11,896 11,192 Legal costs and other professional fees 5,076 4,123 3,950 5,074 3,884 Depreciation - operating leases 3,270 3,393 3,503 3,665 3,917 Amortization of intangibles 1,896 1,462 1,507 1,678 1,689 Other expenses � 13,202 � � 12,167 � � 12,281 � � 16,220 � � 11,387 � Total operating expenses 90,472 90,658 87,977 91,081 82,975 � Income before provision for income taxes and cumulative effect of accounting change 27,593 28,786 27,869 28,588 41,515 Provision for income taxes � 10,105 � � 11,027 � � 9,091 � � 10,076 � � 15,423 � Net income $ 17,488 � $ 17,759 � $ 18,778 � $ 18,512 � $ 26,092 � � � � � � � � � � � � � EARNINGS PER SHARE DATA: Net Income per common share(1) Basic $ 0.36 $ 0.32 $ 0.34 $ 0.33 $ 0.48 Diluted $ 0.35 $ 0.31 $ 0.33 $ 0.32 $ 0.47 � Weighted average common shares outstanding 50,639 50,488 50,478 50,423 50,188 Weighted average common & potential common shares outstanding 51,440 51,294 51,180 51,366 51,173 � GAAP ratios Return on quarterly average assets, annualized 0.96 % 0.98 % 1.00 % 1.00 % 1.47 % Return on quarterly average common shareholders' equity, annualized 9.29 % 9.65 % 10.03 % 10.15 % 14.85 % Return on quarterly average total equity, annualized 8.45 % 8.48 % 8.81 % 8.89 % 12.95 % Net interest margin, annualized(2) 3.71 % 3.78 % 3.91 % 3.97 % 4.26 % Operating expense ratio, annualized(3) 4.96 % 5.01 % 4.71 % 4.92 % 4.66 % Efficiency ratio(4) 76.90 % 76.59 % 76.20 % 76.39 % 67.68 % � NON-GAAP ratios Efficiency ratio (excluding ABD & other ABD expenses paid by holding company)(5) 72.40 % 72.92 % 67.08 % 69.63 % 58.27 % � � (1 ) 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. � Net income $ 17,488 $ 17,759 $ 18,778 $ 18,512 $ 26,092 Less: dividends on convertible preferred stock (1,348 ) (1,831 ) (1,832 ) (1,832 ) (1,822 ) Plus: excess of carrying value over the consideration paid on redemption of preferred stock(7) � 2,030 � � - � � - � � - � � - � Net Income available to common shareholders $ 18,170 � $ 15,928 � $ 16,946 � $ 16,680 � $ 24,270 � � Weighted average common shares outstanding 50,639 50,488 50,478 50,423 50,188 Weighted average potential common shares: Stock options � 801 � � 806 � � 702 � � 943 � � 985 � Total weighted average common & potential common shares outstanding � 51,440 � � 51,294 � � 51,180 � � 51,366 � � 51,173 � � (2 ) Net interest income (on a tax equivalent basis) for the period, annualized and divided by average quarterly interest earning assets for the period. � (3 ) Total operating expenses for the period, annualized and divided by average quarterly assets. � (4 ) Total operating expenses divided by total revenue (the sum of net interest income and non-interest income, excluding provision for credit losses). � (5 ) 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) $ 73,335 $ 74,032 $ 75,911 $ 77,083 $ 82,180 Operating expenses (excluding ABD & other ABD-related expenses) $ 53,091 $ 53,990 $ 50,924 $ 53,670 $ 47,888 � (6 ) Restated Q2 2006 to reflect adoption of SEC Staff Accounting Bulletin No. 108 effective January 1, 2006. � (7 ) On June 30, 2007, the Company redeemed its outstanding convertible Series B Preferred Stock which had a carrying value of $102.6 million at its stated value of $50.00 per share for total consideration of $100.5 million. The $2.0 million excess of the carrying value of the redeemed shares over the consideration paid was recorded as an adjustment to paid-in-capital, which is included in Common Stock. This $2.0 million adjustment to paid-in-capital is also included in income available to common shareholders for purposes of determining the net income per common share. GREATER BAY BANCORP JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars and shares in 000's, except per share data) � � � � � � SELECTED QUARTERLY CONSOLIDATED OPERATING DATA: Six Months Ended June 30, Restated(7) � 2007 � � 2006 � Interest income $ 228,734 $ 212,336 Interest expense � 109,371 � � 79,621 � Net interest income before (reversal of) / provision for credit losses 119,363 132,715 Reversal of provision for credit losses � (1,491 ) � (7,890 ) Net interest income after reversal of provision for credit losses 120,854 140,605 � Non-interest income: Insurance commissions and fees 87,439 84,835 Rental revenue on operating leases 8,537 9,740 Service charges and other fees 4,435 4,908 Loan and international banking fees 4,406 3,513 Income on bank owned life insurance 3,833 3,833 Trust fees 2,151 2,182 Other income � 5,854 � � 6,525 � Total non-interest income 116,655 115,536 � Operating expenses: Compensation and benefits 114,471 108,462 Occupancy and equipment 22,070 22,514 Legal costs and other professional fees 9,199 7,637 Depreciation - operating leases 6,663 7,920 Amortization of intangibles 3,358 3,329 Other expenses � 25,369 � � 23,658 � Total operating expenses 181,130 173,520 � Income before provision for income taxes and cumulative effect of accounting change 56,379 82,621 Provision for income taxes � 21,132 � � 30,429 � Income before cumulative effect of accounting change 35,247 52,192 Cumulative effect of accounting change, net of tax(1) � - � � 130 � Net income $ 35,247 � $ 52,322 � � � � � � � � � EARNINGS PER SHARE DATA: Net Income per common share before cumulative effect of accounting change(2) Basic $ 0.67 $ 0.97 Diluted $ 0.66 $ 0.94 � Net Income per common share after cumulative effect of accounting change(2) Basic $ 0.67 $ 0.97 Diluted $ 0.66 $ 0.94 � Weighted average common shares outstanding 50,568 49,997 Weighted average common & potential common shares outstanding 51,378 51,860 � GAAP ratios Return on YTD average assets, annualized 0.97 % 1.49 % Return on YTD common shareholders' equity, annualized 9.47 % 15.79 % Return on YTD average total equity, annualized 8.46 % 13.67 % Net interest margin, annualized(3) 3.75 % 4.31 % Operating expense ratio, annualized(4) 4.99 % 4.94 % Efficiency ratio(5) 76.74 % 69.90 % � NON-GAAP ratios Efficiency Ratio (excluding ABD & other ABD expenses paid by holding company)(6) 72.66 % 62.27 % � � � � � (1 ) Effective January 1, 2006, the Company adopted SFAS No. 123 (revised 2004), Share-Based Payment ("SFAS 123R"), as a result of which the Company recognized a one-time 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 before and after cumulative effect of accounting change. Additionally, the Company's outstanding convertible preferred stock was antidilutive for all periods presented. � Net income before cumulative effect of accounting change as reported $ 35,247 $ 52,192 Less: dividends on convertible preferred stock (3,179 ) (3,654 ) Plus: excess of carrying value over the consideration paid on redemption of preferred stock(8) � 2,030 � � - � Net Income available to common shareholders before cumulative effect of accounting change 34,098 48,538 Add: CODES interest and other related income/(loss), net of taxes � - � � 59 � Net income available to common shareholders before cumulative effect of accounting change 34,098 48,597 Cumulative effect of accounting change, net of tax � - � � 130 � Net income available to common shareholders after cumulative effect of accounting change $ 34,098 � $ 48,727 � � � Weighted average common shares outstanding 50,568 49,997 Weighted average potential common shares: Stock options 810 879 CODES � - � � 984 � Total weighted average common & potential common shares outstanding � 51,378 � � 51,860 � � (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) $ 147,367 $ 162,726 Operating Expenses (Excluding ABD & other ABD expenses paid by holding company) $ 107,081 $ 101,329 � (7 ) Restated YTD 2006 to reflect adoption of SEC Staff Accounting Bulletin No. 108 effective January 1, 2006. � (8 ) On June 30, 2007, the Company redeemed its outstanding convertible Series B Preferred Stock which had a carrying value of $102.6 million at its stated value of $50.00 per share for total consideration of $100.5 million. The $2.0 million excess of the carrying value of the redeemed shares over the consideration paid was recorded as an adjustment to paid-in-capital, which is included in Common Stock. This $2.0 million adjustment to paid-in-capital is also included in income available to common shareholders for purposes of determining the net income per common share. GREATER BAY BANCORP JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars in 000's) � � � � � � � � � � � � � � SELECTED CONSOLIDATED FINANCIAL CONDITION DATA AND RATIOS: Restated(5) Restated(5) Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 � 2007 � � � 2007 � � � 2006 � � � 2006 � � � 2006 � Cash and cash equivalents $ 134,464 $ 139,083 $ 170,365 $ 160,572 $ 198,716 Fed funds sold 20,000 161,000 - - 36,000 Securities 1,369,589 1,435,692 1,543,097 1,572,109 1,565,732 Loans and leases: Commercial 2,426,776 2,299,362 2,245,549 2,136,235 2,072,334 Term real estate - commercial � 1,492,253 � � � 1,468,160 � � � 1,403,631 � � � 1,423,090 � � � 1,394,518 � Total commercial 3,919,029 3,767,522 3,649,180 3,559,325 3,466,852 Real estate construction and land 656,405 649,009 729,871 753,416 762,409 Residential mortgage 258,479 274,329 279,615 277,038 275,332 Real estate other 144,463 146,697 173,271 163,077 164,133 Consumer and other 66,119 62,026 68,698 79,131 101,821 Deferred costs and fees, net � 7,709 � � � 6,254 � � � 5,206 � � � 4,278 � � � 4,066 � Total loans and leases, net of deferred costs and fees 5,052,204 4,905,837 4,905,841 4,836,265 4,774,613 Allowance for loan and lease losses � (64,110 ) � � (65,950 ) � � (68,025 ) � � (71,323 ) � � (71,689 ) Total loans and leases, net 4,988,094 4,839,887 4,837,816 4,764,942 4,702,924 Goodwill 246,016 246,016 246,016 242,687 243,343 Other intangible assets 41,150 43,069 42,978 44,515 46,227 Other assets � 529,756 � � � 517,581 � � � 530,862 � � � 554,985 � � � 583,167 � Total assets $ 7,329,069 � � $ 7,382,328 � � $ 7,371,134 � � $ 7,339,810 � � $ 7,376,109 � � Deposits: Demand, noninterest-bearing $ 879,756 $ 953,808 $ 1,028,245 $ 980,050 $ 1,015,734 MMDA, NOW and savings 2,527,705 2,679,239 2,614,349 2,613,387 2,734,656 Time deposits, $100,000 and over 805,311 911,915 892,048 784,557 776,712 Other time deposits � 1,086,650 � � � 763,975 � � � 722,541 � � � 681,104 � � � 495,131 � Total deposits � 5,299,422 � � � 5,308,937 � � � 5,257,183 � � � 5,059,098 � � � 5,022,233 � Other borrowings 826,240 791,670 825,837 994,044 970,390 Subordinated debt 175,774 180,929 180,929 180,929 287,631 Other liabilities � 258,201 � � � 237,061 � � � 254,812 � � � 256,545 � � � 268,899 � Total liabilities � 6,559,637 � � � 6,518,597 � � � 6,518,761 � � � 6,490,616 � � � 6,549,153 � � Minority interest: Preferred stock of real estate investment trust subsidiaries 12,943 12,902 12,861 12,821 12,780 � Convertible preferred stock - 103,069 103,094 103,094 103,096 Common shareholders' equity(1) � 756,489 � � � 747,760 � � � 736,418 � � � 733,279 � � � 711,080 � Total shareholders' equity(1) � 756,489 � � � 850,829 � � � 839,512 � � � 836,373 � � � 814,176 � Total liabilities and total equity $ 7,329,069 � � $ 7,382,328 � � $ 7,371,134 � � $ 7,339,810 � � $ 7,376,109 � � � � � � � � � � � � � � � RATIOS: � Loan growth, current quarter to prior year quarter 5.81 % 3.72 % 3.76 % 3.19 % 0.72 % Loan growth, current quarter to prior quarter, annualized 11.97 % 0.00 % 5.71 % 5.12 % 3.81 % Loan growth, YTD 6.02 % 0.00 % 3.76 % 3.06 % 1.99 % � Core loan growth, current quarter to prior year quarter(2) 6.59 % 4.37 % 4.45 % 3.90 % 1.32 % Core loan growth, current quarter to prior quarter, annualized(2) 13.09 % 0.34 % 6.41 % 5.91 % 4.47 % Core loan growth, YTD(2) 6.76 % 0.34 % 4.45 % 3.73 % 2.58 % � Deposit growth, current quarter to prior year quarter 5.52 % 3.92 % 3.93 % 0.87 % 2.93 % Deposit growth, current quarter to prior quarter, annualized -0.72 % 3.99 % 15.53 % 2.91 % -6.79 % Deposit growth, YTD 1.62 % 3.99 % 3.93 % 0.01 % -1.45 % � Core deposit growth, current quarter to prior year quarter(3) -7.56 % -4.58 % -6.79 % -10.48 % -6.63 % Core deposit growth, current quarter to prior quarter, annualized(3) -31.62 % 1.11 % 15.29 % -14.43 % -19.72 % Core deposit growth, YTD(3) -15.39 % 1.11 % -6.79 % -13.71 % -13.84 % � Revenue growth, current quarter to prior year quarter(4) -4.04 % -5.79 % -4.38 % -2.66 % 2.46 % Revenue growth, current quarter to prior quarter, annualized(4) -2.45 % 10.22 % -12.53 % -10.93 % -9.71 % � Net interest income growth, current quarter to prior year quarter -9.69 % -10.43 % -5.69 % -6.21 % 0.63 % Net interest income growth, current quarter to prior quarter, annualized -3.02 % -25.28 % 0.72 % -12.41 % -6.28 % � � (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 Q2 and Q3 2006 to reflect adoption of SEC Staff Accounting Bulletin No. 108 effective January 1, 2006. GREATER BAY BANCORP JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars in 000's) � � � � � � � � � � � � � SELECTED AVERAGE BALANCE SHEET AND YIELD DATA: � Three months ended June 30, 2007 March 31, 2007 Average Average Average yield / Average yield / Tax-Equivalent Basis(1) balance(2) � Interest � rate balance(2) � Interest � rate � INTEREST-EARNING ASSETS: Fed funds sold $ 58,077 $ 763 5.27 % $ 63,223 $ 815 5.23 % Securities: Taxable 1,347,838 15,365 4.57 % 1,441,326 16,588 4.67 % Tax-exempt(1) 90,848 1,554 6.86 % 92,071 1,582 6.97 % Other short-term(3) 9,363 86 3.70 % 8,424 84 4.03 % Loans and leases(4) � 4,948,695 � 97,976 � 7.94 % � 4,869,674 � 94,910 � 7.90 % Total interest-earning assets 6,454,821 115,744 7.19 % 6,474,718 113,979 7.14 % Noninterest-earning assets � 858,236 � - � � 866,562 � - � Total assets $ 7,313,057 � 115,744 � $ 7,341,280 � 113,979 � INTEREST-BEARING LIABILITIES: Deposits: MMDA, NOW and Savings $ 2,609,041 20,195 3.10 % $ 2,603,938 18,810 2.93 % Time deposits over $100,000 858,287 10,856 5.07 % 877,491 10,881 5.03 % Other time deposits � 814,071 � 9,991 � 4.92 % � 747,657 � 9,072 � 4.92 % Total interest-bearing deposits 4,281,399 41,042 3.84 % 4,229,086 38,763 3.72 % Short-term borrowings 347,514 4,624 5.34 % 369,591 4,489 4.93 % Subordinated debt 176,850 3,645 8.27 % 180,929 3,711 8.32 % Other long-term borrowings � 499,732 � 6,724 � 5.40 % � 494,409 � 6,609 � 5.42 % Total interest-bearing liabilities 5,305,495 56,035 4.24 % 5,274,016 53,572 4.12 % Noninterest-bearing deposits 901,588 948,232 Other noninterest-bearing liabilities 263,096 256,393 Minority Interest: Preferred stock of real estate investment trust subsidiaries 12,917 12,876 Shareholders' equity � 829,961 � � 849,763 � Total shareholders' equity and liabilities $ 7,313,057 � 56,035 � $ 7,341,280 � 53,572 � � Net interest income, on a tax-equivalent basis(1) 59,709 60,407 � Net interest margin(5) 3.71 % 3.78 % � Reconciliation to reported net interest income: � Adjustment for tax-equivalent basis � (253 ) � (500 ) � Net interest income, as reported $ 59,456 � $ 59,907 � (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 $771,000 and $592,000, for the three months ended June 30, 2007 and March 31, 2007, 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 JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars in 000's) � � � � � � � � � � � � � SELECTED AVERAGE BALANCE SHEET AND YIELD DATA: � Three months ended June 30, 2007 June 30, 2006 Average Average Average yield / Average yield / Tax-Equivalent Basis(1) balance(2) � Interest � rate balance(2) � Interest � rate � INTEREST-EARNING ASSETS: Fed funds sold $ 58,077 $ 763 5.27 % $ 10,791 $ 128 4.77 % Securities: Taxable 1,347,838 15,365 4.57 % 1,433,756 16,030 4.48 % Tax-exempt(1) 90,848 1,554 6.86 % 86,323 1,543 7.16 % Other short-term(3) 9,363 86 3.70 % 9,348 46 1.99 % Loans and leases(4) � 4,948,695 � 97,976 � 7.94 % � 4,705,859 � 91,074 � 7.76 % Total interest-earning assets 6,454,821 115,744 7.19 % 6,246,077 108,821 6.99 % Noninterest-earning assets � 858,236 � - � � 894,432 � - � Total assets $ 7,313,057 � 115,744 � $ 7,140,509 � 108,821 � INTEREST-BEARING LIABILITIES: Deposits: MMDA, NOW and Savings $ 2,609,041 20,195 3.10 % $ 2,807,337 15,094 2.16 % Time deposits over $100,000 858,287 10,856 5.07 % 780,415 8,466 4.35 % Other time deposits � 814,071 � 9,991 � 4.92 % � 414,765 � 4,381 � 4.24 % Total interest-bearing deposits 4,281,399 41,042 3.84 % 4,002,517 27,941 2.80 % Short-term borrowings 347,514 4,624 5.34 % 262,439 2,947 4.50 % Subordinated debt 176,850 3,645 8.27 % 224,755 4,867 8.68 % Other long-term borrowings � 499,732 � 6,724 � 5.40 % � 547,494 � 6,732 � 4.93 % Total interest-bearing liabilities 5,305,495 56,035 4.24 % 5,037,205 42,487 3.38 % Noninterest-bearing deposits 901,588 1,013,577 Other noninterest-bearing liabilities 263,096 270,030 Minority Interest: Preferred stock of real estate investment trust subsidiaries 12,917 12,756 Shareholders' equity � 829,961 � � 806,941 � Total shareholders' equity and liabilities $ 7,313,057 � 56,035 � $ 7,140,509 � 42,487 � � Net interest income, on a tax-equivalent basis(1) 59,709 66,334 � Net interest margin(5) 3.71 % 4.26 % � Reconciliation to reported net interest income: � Adjustment for tax-equivalent basis � (253 ) � (500 ) � Net interest income, as reported $ 59,456 � $ 65,834 � (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 $771,000 and $602,000 for the three months ended June 30, 2007 and June 30, 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 JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars in 000's) � � � � � � � � � � � � � SELECTED AVERAGE BALANCE SHEET AND YIELD DATA: � Six months ended June 30, 2007 June 30, 2006 Average Average Average yield / Average yield / Tax-Equivalent Basis(1) balance(2) � Interest � rate balance(2) � Interest � rate � INTEREST-EARNING ASSETS: Fed funds sold $ 60,635 $ 1,578 5.25 % $ 11,533 $ 260 4.55 % Securities: Taxable 1,394,324 31,953 4.62 % 1,429,572 31,653 4.47 % Tax-exempt(1) 91,456 3,137 6.92 % 84,470 3,035 7.24 % Other short-term(3) 8,896 170 3.86 % 9,554 81 1.72 % Loans and leases(4) � 4,909,402 � 192,885 � 7.92 % � 4,713,403 � 178,294 � 7.63 % Total interest-earning assets 6,464,713 229,724 7.17 % 6,248,532 213,323 6.88 % Noninterest-earning assets � 862,377 � - � � 889,779 � - � Total assets $ 7,327,090 � 229,724 � $ 7,138,311 � 213,323 � INTEREST-BEARING LIABILITIES: Deposits: MMDA, NOW and Savings $ 2,606,503 39,005 3.02 % $ 2,878,394 29,165 2.04 % Time deposits over $100,000 867,836 21,793 5.06 % 768,401 15,789 4.14 % Other time deposits � 781,048 � 19,007 � 4.91 % � 338,214 � 6,748 � 4.02 % Total interest-bearing deposits 4,255,387 79,805 3.78 % 3,985,009 51,702 2.62 % Short-term borrowings 358,491 9,112 5.13 % 275,389 5,930 4.34 % CODES - - 0.00 % 37,343 101 0.55 % Subordinated debt 178,878 7,356 8.29 % 217,573 9,424 8.73 % Other long-term borrowings � 497,086 � 13,334 � 5.41 % � 511,107 � 12,464 � 4.92 % Total interest-bearing liabilities 5,289,842 109,607 4.18 % 5,026,421 79,621 3.19 % Noninterest-bearing deposits 924,781 1,027,613 Other noninterest-bearing liabilities 259,763 275,984 Minority Interest: Preferred stock of real estate investment trust subsidiaries 12,897 12,735 Shareholders' equity � 839,807 � � 795,558 � Total shareholders' equity and liabilities $ 7,327,090 � 109,607 � $ 7,138,311 � 79,621 � � Net interest income, on a tax-equivalent basis(1) 120,117 133,702 � Net interest margin(5) 3.75 % 4.31 % � Reconciliation to reported net interest income: � Adjustment for tax-equivalent basis � (754 ) � (987 ) � Net interest income, as reported $ 119,363 � $ 132,715 � (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 $1,363,000 and $847,000 for the six months ended June 30, 2007 and June 30, 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 JUNE 30, 2007 - FINANCIAL SUMMARY (UNAUDITED) (Dollars and shares in 000's, except per share data) � � � � � � � � � � SELECTED CONSOLIDATED CREDIT QUALITY DATA: � Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 � � � � � 2007 � � 2007 � � 2006 � � 2006 � � 2006 � � Nonperforming assets Commercial: Matsco/GBC $ 8,169 $ 9,160 $ 7,583 $ 8,323 $ 7,257 SBA 6,252 6,456 5,576 2,881 4,536 Other � 5,280 � � 7,769 � � 8,486 � � 6,458 � � 4,775 � Total commercial 19,701 23,385 21,645 17,662 16,568 Real estate: Commercial 2,306 6,180 7,173 10,939 14,763 Construction and land 1,980 1,980 930 323 323 Other � - � � - � � - � � - � � 3 � Total real estate 4,286 8,160 8,103 11,262 15,089 Consumer and other � 189 � � 74 � � 117 � � 139 � � 611 � Total nonaccrual loans 24,176 31,619 29,865 29,063 32,268 OREO - - - - - Other nonperforming assets � 215 � � 435 � � 382 � � 603 � � 361 � Total nonperforming assets $ 24,391 � $ 32,054 � $ 30,247 � $ 29,666 � $ 32,629 � � Net loan charge-offs (recoveries)(1) $ 1,755 $ 1,122 $ 3,192 $ 223 $ 2,662 � Ratio of allowance for loan and lease losses to: End of period loans 1.27 % 1.35 % 1.39 % 1.48 % 1.50 % Total nonaccrual loans 265.2 % 208.6 % 227.8 % 245.4 % 222.2 % � Ratio of quarter (reversal of) / provision for credit losses to quarter average loans, annualized -0.03 % -0.09 % -0.03 % -0.04 % -0.16 % � Total nonaccrual loans to total loans 0.48 % 0.64 % 0.61 % 0.60 % 0.68 % Total nonperforming assets to total assets 0.33 % 0.43 % 0.41 % 0.40 % 0.44 % � Ratio of quarterly net loan charge-offs to average loans, annualized 0.14 % 0.09 % 0.26 % 0.02 % 0.23 % Ratio of YTD net loan charge-offs to YTD average loans 0.12 % 0.09 % 0.13 % 0.08 % 0.12 % � � � (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: Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 � � � � � 2007 � � 2007 � � 2006 � � 2006 � � 2006 � � Tier 1 leverage ratio 9.64 % 10.92 % 10.63 % 10.63 % 12.07 % Tier 1 risk-based capital ratio 10.90 % 12.61 % 12.26 % 12.15 % 13.49 % Total risk-based capital ratio 12.04 % 13.79 % 13.47 % 13.40 % 14.93 % Total equity to assets ratio 10.32 % 11.53 % 11.39 % 11.40 % 11.04 % Common equity to assets ratio 10.32 % 10.13 % 9.99 % 9.99 % 9.64 % � Tier I capital $ 676,078 $ 769,415 $ 755,860 $ 748,071 $ 824,154 Total risk-based capital $ 746,311 $ 841,821 $ 830,461 $ 825,036 $ 911,802 Risk weighted assets $ 6,201,016 $ 6,103,632 $ 6,166,011 $ 6,155,489 $ 6,108,101 � NON-GAAP RATIOS(1): � Tangible common equity to tangible assets(2) 6.66 % 6.47 % 6.32 % 6.32 % 5.95 % Tangible common book value per common share(3) $ 9.17 $ 8.99 $ 8.78 $ 8.74 $ 8.28 � Common book value per common share(4) $ 14.79 $ 14.65 $ 14.46 $ 14.36 $ 13.97 Total common shares outstanding 51,159 51,044 50,938 51,047 50,917 � � � � � (1 ) The following table provides a reconciliation of common equity to tangible common equity and total assets to tangible assets: � Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 � 2007 � � 2007 � � 2006 � � 2006 � � 2006 � � Common shareholders' equity $ 756,489 $ 747,760 $ 736,418 $ 733,279 $ 711,080 Less: goodwill and other Intangible assets � (287,166 ) � (289,085 ) � (288,994 ) � (287,202 ) � (289,570 ) Tangible common equity $ 469,323 � $ 458,675 � $ 447,424 � $ 446,077 � $ 421,510 � � Total assets $ 7,329,069 $ 7,382,328 $ 7,371,134 $ 7,339,810 $ 7,376,109 Less: goodwill and other intangible assets � (287,166 ) � (289,085 ) � (288,994 ) � (287,202 ) � (289,570 ) Tangible assets $ 7,041,903 � $ 7,093,242 � $ 7,082,140 � $ 7,052,608 � $ 7,086,539 � � (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. �