Bay View Capital Corporation Announces 2005 Results
17 März 2006 - 10:05PM
PR Newswire (US)
SAN MATEO, Calif., March 17 /PRNewswire-FirstCall/ -- Bay View
Capital Corporation (the "Company") today announced that its
consolidated net loss for the year ended December 31, 2005 was
$34.5 million, or $5.22 per diluted share, compared to a net loss
of $3.9 million, or $0.59 per diluted share, for the year ended
December 31, 2004. Results for the year included a charge of $25.3
million to record a full valuation allowance on the Company's
deferred tax assets as of December 31, 2005. As a result of the
Company's consolidated pre-tax loss of $11.9 million for the year
ended December 31, 2005 and in accordance with generally accepted
accounting principles, or GAAP, the Company concluded that its net
deferred tax assets of $46.8 million at December 31, 2005 should be
fully reserved. Under GAAP, the Company is required to recognize a
valuation allowance on its deferred tax assets if, based upon the
weight of available evidence, it is more likely than not that some
or all of the asset may not be realized. The realization of the
deferred tax asset is dependent on the generation of future taxable
income and, given the Company's significant losses, management has
made a judgment that a full valuation allowance is prudent at this
time. In reaching this conclusion, the Company did not take into
consideration the future taxable income that may arise from the
previously announced pending sale of BVAC to a subsidiary of
AmeriCredit Corp. and the pending merger with Great Lakes Bancorp,
Inc. The Company's establishment of the full valuation allowance
does not affect its net operating loss carryforwards, which totaled
$143.4 million at December 31, 2005 and remain available to offset
future taxable income. Upon the consummation of the merger, the
carrying value of the deferred tax assets will be reevaluated as
part of purchase accounting based on estimates of future taxable
income of the combined company. The Company expects to file its
Form 10-K Annual Report for 2005 in the next several days. The 10-K
will contain management's discussion and analysis of the Company's
2005 results of operations. In connection with the previously
announced merger with Great Lakes, the Company has received Federal
Reserve approval of its application to become a bank holding
company as well as New York State Banking Board approval of the
merger. "We are very pleased to have received these approvals from
the bank regulatory authorities and look forward to presenting
these transactions to our stockholders," stated Charles G. Cooper,
the Company's President and Chief Executive Officer. The merger
remains subject to approval by the Company's stockholders and those
of Great Lakes. The Company currently anticipates that the joint
proxy statement/prospectus will be mailed to stockholders of the
Company and Great Lakes in early April. Bay View Capital
Corporation is a financial services company headquartered in San
Mateo, California. Its common stock is listed on the NYSE: BVC. Not
a Proxy Statement This press release is not a proxy statement or a
solicitation of proxies from the holders of common stock of the
Company or Great Lakes Bancorp, Inc. and does not constitute an
offer of any securities of the Company for sale. Any solicitation
of proxies will be made only by the joint proxy
statement/prospectus of the Company and Great Lakes Bancorp, Inc.
that will be mailed to all stockholders promptly after it is
declared effective by the SEC. Investors and security holders of
Great Lakes Bancorp are urged to read the proxy
statement/prospectus of the Company and the relevant materials when
they become available, because they will contain important
information about Great Lakes, the Company and the merger. The
proxy statement/prospectus and other relevant materials, when they
become available, may be obtained free of charge at the SEC's web
site at http://www.sec.gov/. Forward-Looking Statements All
statements contained in this release that are not historic facts
are based on current expectations. Such statements are
forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995) in nature and involve a number of
risks and uncertainties. Although the Company currently believes
that the assumptions underlying the forward-looking statements are
reasonable, any of the assumptions could prove inaccurate and,
therefore, there can be no assurance that the results contemplated
by the forward-looking statements will be realized. For information
regarding factors that could cause the results contemplated by the
forward-looking statements to differ from expectations, such as the
inability to achieve any financial goals related to contemplated
asset resolution, including the inability to use net operating loss
carryforwards that the Company currently has and the inability to
consummate strategic initiatives including the consummation of the
merger transaction with Great Lakes and sale of BVAC, please refer
to the Company's periodic reports filed with the Securities and
Exchange Commission. In light of the significant uncertainties
inherent in the forward-looking statements included herein, the
inclusion of such statements should not be regarded as a
representation by the Company or any other person. The Company
disclaims any obligation to update such forward- looking statements
or to announce publicly the results of any revisions to any of the
forward-looking statements included herein to reflect future events
or developments. DATASOURCE: Bay View Capital Corporation CONTACT:
John Okubo of Bay View Capital Corporation, +1-650-294-7778 Web
site: http://www.bayviewcapital.com/
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