Greater Bay Bancorp Reports Financial Results for the Third Quarter of 2006

  
    
  
  
    
      Greater Bay Bancorp (Nasdaq:GBBK), a $7.3 billion in assets financial 
      services holding company, today announced results for the third quarter 
      and nine months ended September 30, 2006.
    
    
      For the third quarter of 2006, the Company’s net 
      income was $18.5 million, or $0.32 per diluted common share, 
      compared to $25.6 million, or $0.44 per diluted common share, for the 
      third quarter of 2005, and $25.1 million, or $0.46 per diluted common 
      share, for the second quarter of 2006. For the first nine months of 
      2006, net income was $69.5 million, or $1.24 per diluted common share, 
      compared to $69.8 million, or $1.16 per diluted common share for the 
      first nine months of 2005.
    
    
      Operating results for the quarter reflected the recognition of 
      approximately $7.0 million of notable expenses which included the 
      following: $3.2 million of unamortized debt issuance costs that were 
      written off in connection with the redemption of trust preferred 
      securities in August 2006; $2.5 million in combined expenses related to 
      the rebranding of regional banking identities, consulting costs related 
      to the previously disclosed self-initiated review of historical stock 
      option practices, and transitional costs related to the outsourcing of 
      the Company’s mainframe data processing 
      operations; and $1.3 million in costs at ABD related to severance and 
      expenses associated with the opening of ABD’s 
      new office in Oregon.
    
    
      For the third quarter of 2006, the Company’s return 
      on average common equity, annualized, was 10.15% compared to 
      15.13% for the third quarter of 2005, and 14.29% for the second quarter 
      of 2006. Return on average common equity, annualized, for the first nine 
      months of 2006 was 13.22% compared to 13.96% for the same period in 
      2005. Return on average assets, 
      annualized, for the third quarter of 2006 was 1.00% compared to 1.41% 
      for the third quarter of 2005, and 1.41% for the second quarter of 2006. 
      Return on average assets, annualized, was 1.29% for the first nine 
      months of 2006 compared to 1.32% for the same period in 2005.
    
    
      “Our performance for the quarter was marked by 
      the confluence of several non-core or otherwise notable expenses which 
      impacted our bottom line results,” stated 
      Byron A. Scordelis, President and Chief Executive Officer of Greater Bay 
      Bancorp. “On a more sustained basis, we are 
      pleased to note the continuation of both solid loan growth and exemplary 
      credit quality during the most recent period. In the insurance brokerage 
      area, organic revenue growth was once again favorable at ABD, and the 
      Bank successfully completed the outsourcing of its mainframe operations 
      which will contribute to our broader and ongoing cost reduction efforts 
      in the future.”
    
    
      “While period-end core deposit totals once 
      again declined, effectively all of that reduction occurred in the 
      volatile title company, venture capital, and 1031 exchange specialty 
      deposit areas which extended a cyclical trend that has been evident for 
      several quarters,” Mr. Scordelis continued. “With 
      both the growth and quality of our loan portfolio well in hand, we are 
      intently focused on operating expense containment as well as long term 
      growth and value in our core deposit base as being key elements to drive 
      our future earnings performance.”
    
    
      Net Interest Income and Margin
    
    
      Net interest income for the third quarter of 2006 decreased to $63.8 
      million from $68.0 million in the third quarter of 2005, and decreased 
      from $65.8 million in the second quarter of 2006. Net interest income 
      for the first nine months of 2006 decreased to $196.2 million from 
      $199.5 million for the same period of 2005.
    
    
      The net interest margin (on a fully tax-equivalent basis) for the 
      third quarter of 2006 was 3.97%, compared to 4.32% for the third quarter 
      of 2005 and 4.26% for the second quarter of 2006. The net interest 
      margin (on a fully tax equivalent basis) for the first nine months of 
      2006 was 4.20% compared to 4.34% for the same period in 2005.
    
    
      “About half of the third quarter reduction in 
      net interest margin resulted from the combined effect of continued loan 
      growth, core deposit attrition, and upward pressure on core deposit 
      costs,” stated James Westfall, Executive Vice 
      President and Chief Financial Officer. “The 
      remaining change largely resulted from growth in our investment 
      portfolio, a period-to-period decline in deferred interest recognition 
      and prepayment fees, and a temporary increase in cash and cash 
      equivalents. We currently anticipate that our margin for the fourth 
      quarter will remain stabilized at or near third quarter levels which has 
      been reflected in our revised margin outlook for the full year,” 
      he concluded.
    
    
      Non-Interest Income
    
    
      Non-interest income for the third quarter of 2006 increased to $55.5 
      million compared to $54.5 million in the third quarter of 2005. This 
      change was primarily attributable to a $1.8 million increase in 
      insurance brokerage commissions and fees.
    
    
      Non-interest income for the third quarter of 2006 decreased by $1.3 
      million compared to the second quarter of 2006. This reduction was 
      primarily attributable to a $3.6 million reduction in warrant portfolio 
      income, partially offset by a $1.5 million increase in insurance 
      commissions and fees.
    
    
      Non-interest income for the first nine months of 2006 increased to 
      $172.3 million from $158.9 million for the same period of 2005. This 
      change was primarily attributable to an increase in insurance brokerage 
      commissions and fees of $9.6 million and an increase in other income of 
      $3.6 million including $3.9 million of warrant portfolio appreciation.
    
    
      Non-interest income as a percentage of total revenues for the third 
      quarter of 2006 was 46.5%, compared to 44.5% for the third quarter of 
      2005 and 46.3% for the second quarter of 2006. Non-interest income as a 
      percentage of total revenues for the first nine months of 2006 was 
      46.7%, compared to 44.3% for the same period one year ago.
    
    
      “We are encouraged by the continued revenue 
      growth being achieved by ABD in the face of ongoing pressures on premium 
      levels in the property and casualty and workers’ 
      compensation areas,” commented Mr. Scordelis. “Of 
      equal significance, ABD entered the Oregon market by opening a new 
      office in Eugene during the quarter, continuing ABD’s 
      progress in implementing its strategic objective of achieving a 
      preeminent presence and share position on the West Coast.”
    
    
      Operating Expenses
    
    
      Operating expenses for the third quarter of 2006 increased to $91.1 
      million from $84.6 million in the third quarter of 2005. Operating 
      expenses for the third quarter of 2006 increased to $91.1 million from 
      $84.5 million in the second quarter of 2006. This expense growth was 
      primarily attributable to the following:
    
    
      
        Write-off of $3.2 million in unamortized debt issuance costs 
        associated with the redemption of trust preferred securities,
      
      
        Combined costs of $2.5 million associated with the rebranding of 
        banking identities, consulting costs related to the previously 
        disclosed self-initiated review of historical stock option practices, 
        and outsourcing of the Company’s mainframe 
        computer operations, and
      
      
        Costs of $1.3 million at ABD related to severance and expenses 
        associated with the opening of its new office in Oregon.
      
    
    
      Operating expenses for the first nine months of 2006 increased to $267.7 
      million from $249.7 million for the first nine months of 2005. In 
      addition to the items noted above, expense growth during this period was 
      also attributable to:
    
    
      
        Expenses of $10.2 million representing the full year impact in 2006 of 
        expenses resulting from the Lucini/Parish acquisition in May 2005 and 
        ABD’s opening of new office locations in 
        San Diego and Denver, and
      
      
        Expenses of $2.3 million due to accelerated vesting of restricted 
        stock and adoption of FAS 123R.
      
    
    
      “In the current cyclical period of margin and 
      revenue pressure, cost rationalization is clearly of increased 
      importance. As a result of focused expense reduction initiatives 
      currently underway, we fully expect total normalized core operating 
      expenses to decrease in 2007 from actual 2006 levels,” 
      stated Mr. Scordelis.
    
    
      Credit Quality Overview
    
    
      Net loan charge-offs in the third 
      quarter of 2006 were $0.2 million, or 0.02% of average loans, 
      annualized, compared to $3.1 million, or 0.26% of average loans, for the 
      third quarter of 2005 and $2.7 million, or 0.23% of average loans, for 
      the second quarter of 2006. Net loan charge-offs for the first nine 
      months of 2006 were $2.9 million, or 0.08% of average loans, annualized, 
      compared to $10.1 million or 0.29% for the same period in 2005.
    
    
      Provision for credit losses was a 
      negative provision of $0.4 million for the third quarter of 2006, 
      compared to a negative provision of $3.4 million for the third quarter 
      of 2005, and a negative provision of $1.9 million for the second quarter 
      of 2006. The provision for the first nine months of 2006 was a negative 
      $8.3 million, compared to a negative $2.8 million for the first nine 
      months of 2005.
    
    
      Non-performing assets were $29.7 
      million at September 30, 2006, compared to $73.1 million at September 
      30, 2005 and $32.6 million at June 30, 2006. The ratio of non-performing 
      assets to total assets was 0.40% at September 30, 2006, compared to 
      1.03% at September 30, 2005 and 0.44% at June 30, 2006. The ratio of 
      non-accrual loans to total loans was 0.60% at September 30, 2006, 
      compared to 1.53% at September 30, 2005 and 0.68% at June 30, 2006.
    
    
      Allowance for loan and lease losses 
      was $71.3 million, or 1.48% of total loans at September 30, 2006, 
      compared to $92.9 million, or 1.98% of total loans, at September 30, 
      2005 and $71.7 million, or 1.50% of total loans, at June 30, 2006.
    
    
      “We continue to be pleased with the quality 
      of our credit portfolio,” commented Mr. 
      Scordelis. “Non-performing loan levels 
      continued their downward trend, and now stand fully sixty percent below 
      the dollar level of one year ago. Net charge-offs were also extremely 
      well contained. An assessment of these and other key credit metrics gave 
      rise to our decision to favorably adjust our guidance in this area for 
      the full year of 2006,” he concluded.
    
    
      Balance Sheet
    
    
      At September 30, 2006, total assets were $7.3 billion, total net loans 
      were $4.8 billion, total securities were $1.6 billion, and total 
      deposits were $5.1 billion.
    
    
      Total loans net of deferred costs 
      and fees increased by $149.6 million from September 30, 2005 to 
      September 30, 2006. This growth reflects increases of $143.4 million in 
      real estate construction and land loans, and $131.0 million in 
      commercial loans. These increases were partially offset by decreases of 
      $70.1 million in the commercial term real estate loan portfolio, $38.6 
      million in real estate other and $36.9 million in consumer and other 
      loans.
    
    
      Total loans net of deferred costs 
      and fees increased by $61.7 million from June 30, 2006 to September 30, 
      2006, representing an annualized growth rate of 5.12% for the quarter. 
      This growth reflects an increase of $63.9 in commercial loans and $22.0 
      million in commercial term real estate loans, partially offset by 
      decreases of $22.7 million in consumer and other loans and $9.0 million 
      in construction and land loans.
    
    
      “We are pleased with our fourth consecutive 
      quarter of core loan expansion, particularly since this growth was once 
      again concentrated in the targeted area of commercial lending. With our 
      specialty finance business activity remaining strong and our community 
      banking business posting tangible growth during the period, we continue 
      to track to the expectations reflected in our existing guidance,” 
      indicated Mr. Scordelis.
    
    
      Securities totaled $1.6 billion as 
      of September 30, 2006, compared to $1.5 billion at September 30, 2005 
      and $1.6 billion at June 30, 2006.
    
    
      Core deposits (excluding 
      institutional and brokered deposits) at September 30, 2006 decreased by 
      $479.8 million compared to September 30, 2005 and decreased by $154.6 
      million compared to June 30, 2006.
    
    
      According to Mr. Scordelis, “While core 
      deposit levels continue to be affected by the volatility of large 
      specialty accounts and upward pressure on core deposit costs, we are 
      encouraged that money market account totals in our community banking 
      area remained virtually flat during the quarter. Given this overall 
      challenging environment, we have redoubled our focus on steps aimed at 
      ensuring the restoration of well-priced growth in our deposit portfolio,” 
      he added.
    
    
      Capital Overview
    
    
      The capital ratios of Greater Bay Bancorp and its subsidiary bank 
      continue to exceed minimum well-capitalized guidelines established by 
      bank regulatory agencies.
    
    
      The Company’s common equity to assets ratio 
      was 10.01% at September 30, 2006, compared to 9.43% at September 30, 
      2005 and 9.66% at June 30, 2006. The Company’s 
      tangible common equity to tangible assets ratio was 6.34% at September 
      30, 2006, compared to 5.58% at September 30, 2005 and 5.96% at June 30, 
      2006.
    
    
      Other Matters
    
    
      In September 2006, the SEC staff issued Staff Accounting Bulletin No. 
      108, “Considering the Effects of Prior 
      Year Misstatements when Quantifying Misstatements in Current Year 
      Financial Statements” (SAB 108). 
      The Company will adopt SAB 108 as of December 31, 2006 and initially 
      apply its provisions using the cumulative effect transition method in 
      connection with the preparation of its annual financial statements for 
      the year ending December 31, 2006.
    
    
      Upon adoption of SAB 108, the Company expects to increase net income for 
      the year ending December 31, 2006 by approximately $1.3 million and, as 
      of January 1, 2006, record an increase to common stock of approximately 
      $3.4 million and a reduction in retained earnings of approximately $4.7 
      million. The increase in net income results from the reversal of entries 
      recorded during the first and second quarters of 2006 to correct 
      immaterial errors related to periods prior to 2006. The increase in 
      common stock relates to previously uncorrected errors in recording tax 
      benefits arising from stock option tax deductions during the years 1996 
      through 2005.
    
    
      Outlook for 2006
    
    
      Our full year guidance for 2006 has been updated as follows:
    
    
      
        Core Loan Growth – based on the 
        current forecast of moderate economic growth in our primary market 
        area, we anticipate core loan portfolio growth in the mid to high 
        single digit range.
      
      
        Core Deposit Growth – we do not 
        currently contemplate a near-term recovery of the core deposit outflow 
        experienced in the first nine months of 2006, and now expect core 
        deposit totals to remain flat for the balance of the year relative to 
        the quarter end balance at September 30, 2006.
      
      
        Credit Quality – based on our 
        continued credit risk management and the current economic outlook, we 
        anticipate full year net charge-offs to range from 12 basis points to 
        15 basis points of average loans outstanding.
      
      
        Net Interest Margin – based on the 
        Company’s anticipated core loan growth and 
        core deposit stability and its neutral interest rate sensitivity 
        position, we expect the full year margin level to fluctuate in the 
        4.10% to 4.15% range.
      
    
    
      Conference Call
    
    
      The Company will broadcast its earnings conference call live via the 
      Internet at 8:00 a.m. (PST) on Monday, October 30, 2006. Participants 
      may access this conference call through the Company’s 
      website at http://www.gbbk.com, under 
      the “Investor Info” 
      link, or through http://www.earnings.com. 
      You should go to either of these websites 15 minutes prior to the start 
      of the call, as it may be necessary to download audio software to hear 
      the conference call.
    
    
      A replay of the conference call will be available on the websites. A 
      telephone replay will also be available beginning at 11:00 a.m. PST on 
      October 30, 2006 through 9:00 p.m. PST on November 6, 2006, by dialing 
      800-642-1687 or 706-645-9291 and providing Conference ID 9745265.
    
    
      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, CAPCO 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 reserves, growth in loans 
      and deposits, the strength of the local economy and the Company’s 
      intent to adopt SAB 108 as of December 31, 2006. 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, 2005. 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
        
      
      
        
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
        
      
      
        
          (Dollars and shares in 000's, except per share data)
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
          Third
        
        
          Second
        
        
          First
        
        
          Fourth
        
        
          Third
        
      
      
        
        
        
        
        
        
        
          Quarter
        
        
          Quarter
        
        
          Quarter
        
        
          Quarter
        
        
          Quarter
        
      
      
        
        
        
        
        
        
        
          2006 
        
        
          2006 
        
        
          2006 
        
        
          2005 
        
        
          2005 
        
      
      
        
          Interest income
        
        
          $ 113,916 
        
        
          $ 108,321 
        
        
          $ 103,754 
        
        
          $ 102,225 
        
        
          $ 100,710 
        
      
      
        
          Interest expense
        
        
          50,142 
        
        
          42,487 
        
        
          37,134 
        
        
          34,478 
        
        
          32,714 
        
      
      
        
        
        
          Net interest income before (recovery of) / provision for credit 
          losses
        
        
          63,774 
        
        
          65,834 
        
        
          66,620 
        
        
          67,747 
        
        
          67,996 
        
      
      
        
          (Recovery of) / provision for credit losses
        
        
          (443)
        
        
          (1,886)
        
        
          (6,004)
        
        
          (10,491)
        
        
          (3,352)
        
      
      
        
        
        
          Net interest income after (recovery of) / provision for credit losses
        
        
          64,217 
        
        
          67,720 
        
        
          72,624 
        
        
          78,238 
        
        
          71,348 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest income:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Insurance commissions and fees
        
        
          41,757 
        
        
          40,235 
        
        
          44,969 
        
        
          37,071 
        
        
          39,974 
        
      
      
        
        
        
          Rental revenue on operating leases
        
        
          4,632 
        
        
          4,790 
        
        
          5,264 
        
        
          4,906 
        
        
          4,901 
        
      
      
        
        
        
          Service charges and other fees
        
        
          2,363 
        
        
          2,368 
        
        
          2,540 
        
        
          2,533 
        
        
          2,496 
        
      
      
        
        
        
          Loan and international banking fees
        
        
          1,960 
        
        
          1,718 
        
        
          1,795 
        
        
          1,919 
        
        
          1,663 
        
      
      
        
        
        
          Income on bank owned life insurance
        
        
          2,038 
        
        
          1,922 
        
        
          1,911 
        
        
          1,869 
        
        
          1,877 
        
      
      
        
        
        
          Trust fees
        
        
          1,059 
        
        
          1,127 
        
        
          1,055 
        
        
          1,101 
        
        
          1,074 
        
      
      
        
        
        
          Gains on sale of loans
        
        
          (14)
        
        
          - 
        
        
          - 
        
        
          172 
        
        
          100 
        
      
      
        
        
        
          Security gains, net
        
        
          40 
        
        
          5 
        
        
          168 
        
        
          - 
        
        
          43 
        
      
      
        
        
        
          Other income
        
        
          1,617 
        
        
          4,605 
        
        
          2,331 
        
        
          3,438 
        
        
          2,361 
        
      
      
        
        
        
        
        
          Total non-interest income
        
        
          55,452 
        
        
          56,770 
        
        
          60,033 
        
        
          53,009 
        
        
          54,489 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating expenses:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Compensation and benefits
        
        
          52,548 
        
        
          51,500 
        
        
          57,929 
        
        
          51,455 
        
        
          50,745 
        
      
      
        
        
        
          Occupancy and equipment
        
        
          11,896 
        
        
          12,241 
        
        
          11,322 
        
        
          11,285 
        
        
          11,278 
        
      
      
        
        
        
          Legal costs and other professional fees
        
        
          5,074 
        
        
          3,884 
        
        
          3,753 
        
        
          5,295 
        
        
          4,671 
        
      
      
        
        
        
          Depreciation - operating leases
        
        
          3,665 
        
        
          3,917 
        
        
          4,091 
        
        
          4,013 
        
        
          4,108 
        
      
      
        
        
        
          Amortization of intangibles
        
        
          1,678 
        
        
          1,689 
        
        
          1,640 
        
        
          1,835 
        
        
          1,886 
        
      
      
        
        
        
          Other expenses
        
        
          16,220 
        
        
          11,255 
        
        
          13,379 
        
        
          12,476 
        
        
          11,936 
        
      
      
        
        
        
        
        
          Total operating expenses
        
        
          91,081 
        
        
          84,486 
        
        
          92,114 
        
        
          86,359 
        
        
          84,624 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income before provision for income taxes and cumulative effect of 
          accounting change
        
        
          28,588 
        
        
          40,004 
        
        
          40,543 
        
        
          44,888 
        
        
          41,213 
        
      
      
        
          Provision for income taxes
        
        
          10,076 
        
        
          14,886 
        
        
          14,772 
        
        
          17,433 
        
        
          15,626 
        
      
      
        
          Income before cumulative effect of accounting change
        
        
          18,512 
        
        
          25,118 
        
        
          25,771 
        
        
          27,455 
        
        
          25,587 
        
      
      
        
          Cumulative effect of accounting change, net of tax (1)
        
        
          - 
        
        
          - 
        
        
          130 
        
        
          - 
        
        
          - 
        
      
      
        
        
        
          Net income
        
        
          $ 18,512 
        
        
          $ 25,118 
        
        
          $ 25,901 
        
        
          $ 27,455 
        
        
          $ 25,587 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          EARNINGS PER SHARE DATA:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net Income per common share before cumulative effect of accounting 
          change (2)
        
        
        
      
      
        
        
        
          Basic
        
        
          $ 0.33 
        
        
          $ 0.46 
        
        
          $ 0.48 
        
        
          $ 0.51 
        
        
          $ 0.47 
        
      
      
        
        
        
          Diluted
        
        
          $ 0.32 
        
        
          $ 0.46 
        
        
          $ 0.46 
        
        
          $ 0.48 
        
        
          $ 0.44 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income per common share after cumulative effect of accounting 
          change (2)
        
        
        
      
      
        
        
        
          Basic
        
        
          $ 0.33 
        
        
          $ 0.46 
        
        
          $ 0.48 
        
        
          $ 0.51 
        
        
          $ 0.47 
        
      
      
        
        
        
          Diluted
        
        
          $ 0.32 
        
        
          $ 0.46 
        
        
          $ 0.46 
        
        
          $ 0.48 
        
        
          $ 0.44 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average common shares outstanding
        
        
          50,423 
        
        
          50,188 
        
        
          49,802 
        
        
          50,251 
        
        
          50,698 
        
      
      
        
          Weighted average common & potential common shares outstanding
        
        
          51,366 
        
        
          51,173 
        
        
          52,727 
        
        
          53,370 
        
        
          54,010 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          GAAP ratios
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Return on quarterly average assets, annualized
        
        
          1.00%
        
        
          1.41%
        
        
          1.47%
        
        
          1.53%
        
        
          1.41%
        
      
      
        
        
        
          Return on quarterly average common shareholders' equity, annualized
        
        
          10.15%
        
        
          14.29%
        
        
          15.42%
        
        
          16.25%
        
        
          15.13%
        
      
      
        
        
        
          Return on quarterly average total equity, annualized
        
        
          8.89%
        
        
          12.47%
        
        
          13.39%
        
        
          14.09%
        
        
          13.12%
        
      
      
        
        
        
          Net interest margin, annualized (3)
        
        
          3.97%
        
        
          4.26%
        
        
          4.35%
        
        
          4.36%
        
        
          4.32%
        
      
      
        
        
        
          Operating expense ratio, annualized (4)
        
        
          4.92%
        
        
          4.75%
        
        
          5.24%
        
        
          4.81%
        
        
          4.67%
        
      
      
        
        
        
          Efficiency ratio (5)
        
        
          76.39%
        
        
          68.91%
        
        
          72.73%
        
        
          71.52%
        
        
          69.09%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          NON-GAAP ratios
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Efficiency ratio (excluding ABD & other ABD expenses paid by holding 
          company) (6)
        
        
          69.63%
        
        
          59.53%
        
        
          67.76%
        
        
          62.31%
        
        
          59.50%
        
      
      
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            (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 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.
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Income before cumulative effect of accounting change as reported
        
        
          $ 18,512 
        
        
          $ 25,118 
        
        
          $ 25,771 
        
        
          $ 27,455 
        
        
          $ 25,587 
        
      
      
        
        
        
          Less: dividends on convertible preferred stock
        
        
          (1,832)
        
        
          (1,822)
        
        
          (1,832)
        
        
          (1,825)
        
        
          (1,834)
        
      
      
        
        
        
          Income available to common shareholders before cumulative effect of 
          accounting change
        
        
          16,680 
        
        
          23,296 
        
        
          23,939 
        
        
          25,630 
        
        
          23,753 
        
      
      
        
        
        
          Add: CODES interest and other related income/(loss), net of taxes
        
        
          - 
        
        
          - 
        
        
          59 
        
        
          (99)
        
        
          76 
        
      
      
        
        
        
          Income available to common shareholders before cumulative effect of 
          accounting change
        
        
          16,680 
        
        
          23,296 
        
        
          23,998 
        
        
          25,531 
        
        
          23,829 
        
      
      
        
        
        
          Cumulative effect of accounting change, net of tax
        
        
          - 
        
        
          - 
        
        
          130 
        
        
          - 
        
        
          - 
        
      
      
        
        
        
          Income available to common shareholders after cumulative effect of 
          accounting change
        
        
          $ 16,680 
        
        
          $ 23,296 
        
        
          $ 24,128 
        
        
          $ 25,531 
        
        
          $ 23,829 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Weighted average common shares outstanding
        
        
          50,423 
        
        
          50,188 
        
        
          49,802 
        
        
          50,251 
        
        
          50,698 
        
      
      
        
        
        
          Weighted average potential common shares:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Stock options
        
        
          943 
        
        
          985 
        
        
          946 
        
        
          939 
        
        
          878 
        
      
      
        
        
        
        
        
          CODES due 2024
        
        
          - 
        
        
          - 
        
        
          1,979 
        
        
          2,180 
        
        
          2,426 
        
      
      
        
        
        
        
        
          CODES due 2022
        
        
          - 
        
        
          - 
        
        
          - 
        
        
          - 
        
        
          8 
        
      
      
        
        
        
          Total weighted average common & potential common shares outstanding
        
        
          51,366 
        
        
          51,173 
        
        
          52,727 
        
        
          53,370 
        
        
          54,010 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            (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)
        
        
          $ 77,083 
        
        
          $ 82,180 
        
        
          $ 81,183 
        
        
          $ 83,614 
        
        
          $ 81,796 
        
      
      
        
        
        
        
        
          Operating expenses (excluding ABD & other ABD expenses paid by 
          holding company)
        
        
          $ 53,670 
        
        
          $ 48,922 
        
        
          $ 55,010 
        
        
          $ 52,102 
        
        
          $ 48,667 
        
      
    
    
      
        
          GREATER BAY BANCORP
        
      
      
        
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
        
      
      
        
          (Dollars and shares in 000's, except per share data)
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Nine Months Ended September 30,
        
      
      
        
        
        
        
        
        
        
        
        
          2006 
        
        
          2005 
        
      
      
        
          Interest income
        
        
          $ 325,991 
        
        
          $ 288,558 
        
      
      
        
          Interest expense
        
        
          129,763 
        
        
          89,095 
        
      
      
        
        
        
          Net interest income before (recovery of) / provision for credit 
          losses
        
        
          196,228 
        
        
          199,463 
        
      
      
        
          (Recovery of) / provision for credit losses
        
        
          (8,333)
        
        
          (2,778)
        
      
      
        
        
        
          Net interest income after (recovery of) / provision for credit losses
        
        
          204,561 
        
        
          202,241 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest income:
        
        
        
        
        
      
      
        
        
        
          Insurance commissions and fees
        
        
          126,961 
        
        
          117,319 
        
      
      
        
        
        
          Rental revenue on operating leases
        
        
          14,686 
        
        
          13,396 
        
      
      
        
        
        
          Service charges and other fees
        
        
          7,271 
        
        
          7,915 
        
      
      
        
        
        
          Loan and international banking fees
        
        
          5,473 
        
        
          5,789 
        
      
      
        
        
        
          Income on bank owned life insurance
        
        
          5,871 
        
        
          5,679 
        
      
      
        
        
        
          Trust fees
        
        
          3,241 
        
        
          3,200 
        
      
      
        
        
        
          Gains on sale of loans
        
        
          (14)
        
        
          306 
        
      
      
        
        
        
          Security gains, net
        
        
          213 
        
        
          342 
        
      
      
        
        
        
          Other income
        
        
          8,553 
        
        
          4,977 
        
      
      
        
        
        
        
        
          Total non-interest income
        
        
          172,255 
        
        
          158,923 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating expenses:
        
        
        
        
        
      
      
        
        
        
          Compensation and benefits
        
        
          161,977 
        
        
          149,202 
        
      
      
        
        
        
          Occupancy and equipment
        
        
          35,459 
        
        
          32,838 
        
      
      
        
        
        
          Legal costs and other professional fees
        
        
          12,711 
        
        
          12,720 
        
      
      
        
        
        
          Depreciation - operating leases
        
        
          11,673 
        
        
          11,213 
        
      
      
        
        
        
          Amortization of intangibles
        
        
          5,007 
        
        
          6,041 
        
      
      
        
        
        
          Other expenses
        
        
          40,854 
        
        
          37,688 
        
      
      
        
        
        
        
        
          Total operating expenses
        
        
          267,681 
        
        
          249,702 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income before provision for income taxes and cumulative effect of 
          accounting change
        
        
          109,135 
        
        
          111,462 
        
      
      
        
          Provision for income taxes
        
        
          39,734 
        
        
          41,690 
        
      
      
        
          Income before cumulative effect of accounting change
        
        
          69,401 
        
        
          69,772 
        
      
      
        
          Cumulative effect of accounting change, net of tax (1)
        
        
          130 
        
        
          - 
        
      
      
        
        
        
          Net income
        
        
          $ 69,531 
        
        
          $ 69,772 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          EARNINGS PER SHARE DATA:
        
        
        
        
        
      
      
        
          Net Income per common share before cumulative effect of accounting 
          change (2)
        
        
        
        
        
      
      
        
        
        
          Basic
        
        
        
        
          $ 1.27 
        
        
          $ 1.26 
        
      
      
        
        
        
          Diluted
        
        
        
        
          $ 1.24 
        
        
          $ 1.16 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income per common share after cumulative effect of accounting 
          change (2)
        
        
        
        
        
      
      
        
        
        
          Basic
        
        
        
        
          $ 1.28 
        
        
          $ 1.26 
        
      
      
        
        
        
          Diluted
        
        
        
        
          $ 1.24 
        
        
          $ 1.16 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average common shares outstanding
        
        
          50,159 
        
        
          50,891 
        
      
      
        
          Weighted average common & potential common shares outstanding
        
        
          51,536 
        
        
          55,824 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          GAAP ratios
        
        
        
        
        
        
        
      
      
        
        
        
          Return on YTD average assets, annualized
        
        
          1.29%
        
        
          1.32%
        
      
      
        
        
        
          Return on YTD common shareholders' equity, annualized
        
        
          13.22%
        
        
          13.96%
        
      
      
        
        
        
          Return on YTD average total equity, annualized
        
        
          11.53%
        
        
          12.09%
        
      
      
        
        
        
          Net interest margin, annualized (3)
        
        
          4.20%
        
        
          4.34%
        
      
      
        
        
        
          Operating expense ratio, annualized (4)
        
        
          4.97%
        
        
          4.72%
        
      
      
        
        
        
          Efficiency ratio (5)
        
        
          72.64%
        
        
          69.67%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          NON-GAAP ratios
        
        
        
        
        
      
      
        
        
        
          Efficiency Ratio (excluding ABD & other ABD expenses paid by holding 
          company) (6)
        
        
          65.55%
        
        
          62.53%
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (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.
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Income before cumulative effect of accounting change as reported
        
        
          $ 69,401 
        
        
          $ 69,772 
        
      
      
        
        
        
          Less: dividends on convertible preferred stock
        
        
          (5,486)
        
        
          (5,515)
        
      
      
        
        
        
          Net Income available to common shareholders before cumulative effect 
          of accounting change
        
        
          63,915 
        
        
          64,257 
        
      
      
        
        
        
          Add: CODES interest and other related income/(loss), net of taxes
        
        
          59 
        
        
          366 
        
      
      
        
        
        
          Income available to common shareholders before cumulative effect of 
          accounting change
        
        
          63,974 
        
        
          64,623 
        
      
      
        
        
        
          Cumulative effect of accounting change, net of tax
        
        
          130 
        
        
          - 
        
      
      
        
        
        
          Income available to common shareholders after cumulative effect of 
          accounting change
        
        
          $ 64,104 
        
        
          $ 64,623 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Weighted average common shares outstanding
        
        
          50,159 
        
        
          50,891 
        
      
      
        
        
        
          Weighted average potential common shares:
        
        
        
        
        
      
      
        
        
        
        
        
          Stock options
        
        
          725 
        
        
          927 
        
      
      
        
        
        
        
        
          CODES due 2024
        
        
          652 
        
        
          3,993 
        
      
      
        
        
        
        
        
          CODES due 2022
        
        
          - 
        
        
          13 
        
      
      
        
        
        
          Total weighted average common & potential common shares outstanding
        
        
          51,536 
        
        
          55,824 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            (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 information is for 
          calculating the efficiency ratio excluding ABD:
        
      
      
        
           
        
      
      
        
        
        
        
        
          Revenue (Excluding ABD)
        
        
          $ 240,446 
        
        
          $ 239,730 
        
      
      
        
        
        
        
        
          Operating Expenses (Excluding ABD & other ABD expenses paid by 
          holding company)
        
        
          $ 157,602 
        
        
          $ 149,904 
        
      
    
    
      
        
          GREATER BAY BANCORP
        
      
      
        
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
        
      
      
        
          (Dollars in 000's)
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          SELECTED CONSOLIDATED FINANCIAL CONDITION DATA AND RATIOS:
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Sep 30
        
        
          Jun 30
        
        
          Mar 31
        
        
          Dec 31
        
        
          Sep 30
        
      
      
        
        
        
        
        
        
        
        
        
          2006 
        
        
          2006 
        
        
          2006 
        
        
          2005 
        
        
          2005 
        
      
      
        
          Cash and cash equivalents
        
        
          $ 160,572 
        
        
          $ 198,716 
        
        
          $ 167,203 
        
        
          $ 152,153 
        
        
          $ 153,284 
        
      
      
        
          Fed funds sold
        
        
          - 
        
        
          36,000 
        
        
          - 
        
        
          - 
        
        
          20,000 
        
      
      
        
          Securities
        
        
        
        
          1,572,109 
        
        
          1,565,732 
        
        
          1,468,123 
        
        
          1,493,584 
        
        
          1,487,935 
        
      
      
        
          Loans:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Commercial (1)
        
        
          2,136,235 
        
        
          2,072,334 
        
        
          2,046,402 
        
        
          2,052,049 
        
        
          2,005,198 
        
      
      
        
        
        
          Term real estate - commercial
        
        
          1,362,794 
        
        
          1,340,762 
        
        
          1,389,635 
        
        
          1,389,329 
        
        
          1,432,939 
        
      
      
        
        
        
        
        
          Total commercial (1)
        
        
          3,499,029 
        
        
          3,413,096 
        
        
          3,436,037 
        
        
          3,441,378 
        
        
          3,438,137 
        
      
      
        
        
        
          Real estate construction and land
        
        
          753,416 
        
        
          762,409 
        
        
          688,086 
        
        
          644,883 
        
        
          609,969 
        
      
      
        
        
        
          Residential mortgage
        
        
          277,038 
        
        
          275,332 
        
        
          271,658 
        
        
          266,263 
        
        
          258,268 
        
      
      
        
        
        
          Real estate other
        
        
          223,373 
        
        
          217,889 
        
        
          230,190 
        
        
          263,164 
        
        
          261,969 
        
      
      
        
        
        
          Consumer and other (1)
        
        
          79,131 
        
        
          101,821 
        
        
          100,468 
        
        
          109,168 
        
        
          116,026 
        
      
      
        
        
        
          Deferred costs and fees, net (1)
        
        
          4,278 
        
        
          4,066 
        
        
          3,285 
        
        
          3,113 
        
        
          2,344 
        
      
      
        
        
        
        
        
          Total loans, net of deferred costs and fees (1)
        
        
          4,836,265 
        
        
          4,774,613 
        
        
          4,729,724 
        
        
          4,727,969 
        
        
          4,686,713 
        
      
      
        
        
        
          Allowance for loan and lease losses
        
        
          (71,323)
        
        
          (71,689)
        
        
          (74,568)
        
        
          (82,159)
        
        
          (92,857)
        
      
      
        
        
        
        
        
          Total loans, net
        
        
          4,764,942 
        
        
          4,702,924 
        
        
          4,655,156 
        
        
          4,645,810 
        
        
          4,593,856 
        
      
      
        
          Goodwill
        
        
        
        
          242,687 
        
        
          243,343 
        
        
          242,728 
        
        
          243,289 
        
        
          236,511 
        
      
      
        
          Other intangible assets
        
        
          44,515 
        
        
          46,227 
        
        
          48,005 
        
        
          49,741 
        
        
          51,739 
        
      
      
        
          Other assets
        
        
          548,530 
        
        
          576,712 
        
        
          527,291 
        
        
          536,392 
        
        
          529,983 
        
      
      
        
          Total assets
        
        
          $ 7,333,355 
        
        
          $ 7,369,654 
        
        
          $ 7,108,506 
        
        
          $ 7,120,969 
        
        
          $ 7,073,308 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Deposits:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Demand, noninterest-bearing
        
        
          $ 980,050 
        
        
          $ 1,015,734 
        
        
          $ 1,004,575 
        
        
          $ 1,093,157 
        
        
          $ 1,066,536 
        
      
      
        
        
        
          MMDA, NOW and savings
        
        
          2,613,387 
        
        
          2,734,656 
        
        
          2,957,354 
        
        
          3,000,647 
        
        
          3,003,159 
        
      
      
        
        
        
          Time deposits, $100,000 and over
        
        
          784,557 
        
        
          776,712 
        
        
          782,891 
        
        
          741,682 
        
        
          750,406 
        
      
      
        
        
        
          Other time deposits
        
        
          681,104 
        
        
          495,131 
        
        
          363,941 
        
        
          223,053 
        
        
          195,315 
        
      
      
        
        
        
        
        
          Total deposits
        
        
          5,059,098 
        
        
          5,022,233 
        
        
          5,108,761 
        
        
          5,058,539 
        
        
          5,015,416 
        
      
      
        
          Other borrowings
        
        
          994,044 
        
        
          970,390 
        
        
          750,248 
        
        
          797,802 
        
        
          813,006 
        
      
      
        
          Subordinated debt
        
        
          180,929 
        
        
          287,631 
        
        
          210,311 
        
        
          210,311 
        
        
          210,311 
        
      
      
        
          Other liabilities
        
        
          249,553 
        
        
          261,907 
        
        
          232,866 
        
        
          265,607 
        
        
          252,510 
        
      
      
        
        
        
        
        
          Total liabilities
        
        
          6,483,624 
        
        
          6,542,161 
        
        
          6,302,186 
        
        
          6,332,259 
        
        
          6,291,243 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Minority interest:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          
            Preferred stock of real estate investment trust subsidiaries
          
        
        
          12,821 
        
        
          12,780 
        
        
          12,739 
        
        
          12,699 
        
        
          12,658 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Convertible preferred stock
        
        
          103,094 
        
        
          103,096 
        
        
          103,097 
        
        
          103,387 
        
        
          102,706 
        
      
      
        
          Common shareholders' equity
        
        
          733,816 
        
        
          711,617 
        
        
          690,484 
        
        
          672,624 
        
        
          666,701 
        
      
      
        
        
        
        
        
          Total equity
        
        
          836,910 
        
        
          814,713 
        
        
          793,581 
        
        
          776,011 
        
        
          769,407 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          Total liabilities and total equity
        
        
          $ 7,333,355 
        
        
          $ 7,369,654 
        
        
          $ 7,108,506 
        
        
          $ 7,120,969 
        
        
          $ 7,073,308 
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          RATIOS:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loan growth, current quarter to prior year quarter
        
        
          3.19%
        
        
          0.72%
        
        
          4.93%
        
        
          5.34%
        
        
          4.31%
        
      
      
        
          Loan growth, current quarter to prior quarter, annualized
        
        
          5.12%
        
        
          3.81%
        
        
          0.15%
        
        
          3.49%
        
        
          -4.50%
        
      
      
        
          Loan growth, YTD
        
        
          3.06%
        
        
          1.99%
        
        
          0.15%
        
        
          5.34%
        
        
          5.91%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Core loan growth, current quarter to prior year quarter (2)
        
        
          3.90%
        
        
          1.32%
        
        
          1.39%
        
        
          0.57%
        
        
          -1.13%
        
      
      
        
          Core loan growth, current quarter to prior quarter, annualized (2)
        
        
          5.91%
        
        
          4.47%
        
        
          0.66%
        
        
          4.30%
        
        
          -4.09%
        
      
      
        
          Core loan growth, YTD (2)
        
        
          3.73%
        
        
          2.58%
        
        
          0.66%
        
        
          0.57%
        
        
          -0.68%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Deposit growth, current quarter to prior year quarter
        
        
          0.87%
        
        
          2.93%
        
        
          2.26%
        
        
          -0.87%
        
        
          -3.47%
        
      
      
        
          Deposit growth, current quarter to prior quarter, annualized
        
        
          2.91%
        
        
          -6.79%
        
        
          4.03%
        
        
          3.41%
        
        
          11.07%
        
      
      
        
          Deposit growth, YTD
        
        
          0.01%
        
        
          -1.45%
        
        
          4.03%
        
        
          -0.87%
        
        
          -2.29%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Core deposit growth, current quarter to prior year quarter (3)
        
        
          -10.48%
        
        
          -6.63%
        
        
          -5.78%
        
        
          -5.03%
        
        
          -6.45%
        
      
      
        
          Core deposit growth, current quarter to prior quarter, annualized (3)
        
        
          -14.43%
        
        
          -19.72%
        
        
          -8.31%
        
        
          -1.02%
        
        
          2.02%
        
      
      
        
          Core deposit growth, YTD (3)
        
        
          -13.71%
        
        
          -13.84%
        
        
          -8.31%
        
        
          -5.03%
        
        
          -6.40%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenue growth, current quarter to prior year quarter (4)
        
        
          -2.66%
        
        
          2.46%
        
        
          8.96%
        
        
          7.03%
        
        
          3.77%
        
      
      
        
          Revenue growth, current quarter to prior quarter, annualized (4)
        
        
          -10.93%
        
        
          -12.82%
        
        
          19.80%
        
        
          -5.60%
        
        
          9.35%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income growth, current quarter to prior year quarter
        
        
          -6.21%
        
        
          0.63%
        
        
          0.88%
        
        
          -0.52%
        
        
          -3.23%
        
      
      
        
          Net interest income growth, current quarter to prior quarter, 
          annualized
        
        
          -12.41%
        
        
          -4.73%
        
        
          -6.75%
        
        
          -1.45%
        
        
          15.59%
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (1) In Q3 2006, $15.4 million of deferred costs and fees on leases 
          were reclassified from commercial loans and consumer and other loans 
          into net deferred costs and fees. Prior periods have been changed to 
          conform to this presentation.
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (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 (recovery of) / 
          provision for credit losses and total non-interest income.
        
      
    
    
      
        
          GREATER BAY BANCORP
        
      
      
        
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
        
      
      
        
          (Dollars in 000's)
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Three months ended
        
      
      
        
        
        
          September 30, 2006
        
        
          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
        
        
          $ 33,141 
        
        
          $ 432 
        
        
          5.18%
        
        
          $ 10,791 
        
        
          $ 128 
        
        
          4.77%
        
      
      
        
          Securities:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Taxable
        
        
          1,509,123 
        
        
          17,537 
        
        
          4.61%
        
        
          1,433,756 
        
        
          16,030 
        
        
          4.48%
        
      
      
        
          Tax-exempt (1)
        
        
          91,142 
        
        
          1,590 
        
        
          6.92%
        
        
          86,323 
        
        
          1,543 
        
        
          7.16%
        
      
      
        
          Other short-term (3)
        
        
          9,993 
        
        
          83 
        
        
          3.29%
        
        
          9,348 
        
        
          46 
        
        
          1.99%
        
      
      
        
          Loans (4)
        
        
          4,785,791 
        
        
          94,781 
        
        
          7.86%
        
        
          4,705,859 
        
        
          91,074 
        
        
          7.76%
        
      
      
        
          Total interest-earning assets
        
        
          6,429,190 
        
        
          114,423 
        
        
          7.06%
        
        
          6,246,077 
        
        
          108,821 
        
        
          6.99%
        
      
      
        
          Noninterest-earning assets
        
        
          911,348 
        
        
          - 
        
        
        
        
          888,886 
        
        
          - 
        
        
        
      
      
        
          Total assets
        
        
          $ 7,340,538 
        
        
          114,423 
        
        
        
        
          $ 7,134,963 
        
        
          108,821 
        
        
        
      
      
        
          INTEREST-BEARING LIABILITIES:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Deposits:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          MMDA, NOW and Savings
        
        
          $ 2,719,915 
        
        
          17,036 
        
        
          2.48%
        
        
          $ 2,807,337 
        
        
          15,094 
        
        
          2.16%
        
      
      
        
          Time deposits over $100,000
        
        
          787,289 
        
        
          9,506 
        
        
          4.79%
        
        
          780,415 
        
        
          8,466 
        
        
          4.35%
        
      
      
        
          Other time deposits
        
        
          595,200 
        
        
          6,973 
        
        
          4.65%
        
        
          414,765 
        
        
          4,381 
        
        
          4.24%
        
      
      
        
          Total interest-bearing deposits
        
        
          4,102,404 
        
        
          33,515 
        
        
          3.24%
        
        
          4,002,517 
        
        
          27,941 
        
        
          2.80%
        
      
      
        
          Short-term borrowings
        
        
          299,675 
        
        
          3,674 
        
        
          4.86%
        
        
          262,439 
        
        
          2,947 
        
        
          4.50%
        
      
      
        
          CODES
        
        
          - 
        
        
          - 
        
        
          0.00%
        
        
          - 
        
        
          - 
        
        
          0.00%
        
      
      
        
          Subordinated debt
        
        
          251,677 
        
        
          5,355 
        
        
          8.44%
        
        
          224,755 
        
        
          4,867 
        
        
          8.68%
        
      
      
        
          Other long-term borrowings
        
        
          579,694 
        
        
          7,598 
        
        
          5.20%
        
        
          547,494 
        
        
          6,732 
        
        
          4.93%
        
      
      
        
          Total interest-bearing liabilities
        
        
          5,233,450 
        
        
          50,142 
        
        
          3.80%
        
        
          5,037,205 
        
        
          42,487 
        
        
          3.38%
        
      
      
        
          Noninterest-bearing deposits
        
        
          993,457 
        
        
        
        
        
        
          1,013,577 
        
        
        
        
        
      
      
        
          Other noninterest-bearing liabilities
        
        
          274,367 
        
        
        
        
        
        
          263,424 
        
        
        
        
        
      
      
        
          Minority Interest: Preferred stock of real estate investment trust 
          subsidiaries
        
        
          12,796 
        
        
        
        
        
        
          12,756 
        
        
        
        
        
      
      
        
          Shareholders' equity
        
        
          826,468 
        
        
           
        
        
        
        
          808,001 
        
        
           
        
        
        
      
      
        
          Total shareholders' equity and liabilities
        
        
          $ 7,340,538 
        
        
          50,142 
        
        
        
        
          $ 7,134,963 
        
        
          42,487 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income, on a tax-equivalent basis (1)
        
        
        
        
          64,281 
        
        
        
        
        
        
          66,334 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest margin (5)
        
        
        
        
        
        
          3.97%
        
        
        
        
        
        
          4.26%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Reconciliation to reported net interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Adjustment for tax equivalent basis
        
        
        
        
          (507)
        
        
        
        
        
        
          (500)
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income, as reported
        
        
        
        
          $ 63,774 
        
        
        
        
        
        
          $ 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 loan fees, net of the amortization 
          of deferred costs, resulted in an increase of interest income on 
          loans by $364,000 and $602,000, for the three months ended 
          September 30, 2006 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
        
      
      
        
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
        
      
      
        
          (Dollars in 000's)
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Three months ended
        
      
      
        
        
        
          September 30, 2006
        
        
          September 30, 2005
        
      
      
        
        
        
        
        
        
        
          Average
        
        
        
        
        
        
          Average
        
      
      
        
        
        
          Average
        
        
        
        
          yield /
        
        
          Average
        
        
        
        
          yield /
        
      
      
        
          Tax-Equivalent Basis (1)
        
        
          balance (2)
        
        
          Interest
        
        
          rate
        
        
          balance (2)
        
        
          Interest
        
        
          rate
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          INTEREST-EARNING ASSETS:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Fed funds sold
        
        
          $ 33,141 
        
        
          $ 432 
        
        
          5.18%
        
        
          $ 45,033 
        
        
          $ 384 
        
        
          3.38%
        
      
      
        
          Securities:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Taxable
        
        
          1,509,123 
        
        
          17,537 
        
        
          4.61%
        
        
          1,446,353 
        
        
          15,117 
        
        
          4.15%
        
      
      
        
          Tax-exempt (1)
        
        
          91,142 
        
        
          1,590 
        
        
          6.92%
        
        
          82,724 
        
        
          1,514 
        
        
          7.27%
        
      
      
        
          Other short-term (3)
        
        
          9,993 
        
        
          83 
        
        
          3.29%
        
        
          11,923 
        
        
          59 
        
        
          1.96%
        
      
      
        
          Loans (4)
        
        
          4,785,791 
        
        
          94,781 
        
        
          7.86%
        
        
          4,699,570 
        
        
          84,135 
        
        
          7.10%
        
      
      
        
          Total interest-earning assets
        
        
          6,429,190 
        
        
          114,423 
        
        
          7.06%
        
        
          6,285,603 
        
        
          101,209 
        
        
          6.39%
        
      
      
        
          Noninterest-earning assets
        
        
          911,348 
        
        
          - 
        
        
        
        
          902,363 
        
        
          - 
        
        
        
      
      
        
          Total assets
        
        
          $ 7,340,538 
        
        
          114,423 
        
        
        
        
          $ 7,187,966 
        
        
          101,209 
        
        
        
      
      
        
          INTEREST-BEARING LIABILITIES:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Deposits:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          MMDA, NOW and Savings
        
        
          $ 2,719,915 
        
        
          17,036 
        
        
          2.48%
        
        
          $ 3,004,193 
        
        
          13,042 
        
        
          1.72%
        
      
      
        
          Time deposits over $100,000
        
        
          787,289 
        
        
          9,506 
        
        
          4.79%
        
        
          729,040 
        
        
          5,562 
        
        
          3.03%
        
      
      
        
          Other time deposits
        
        
          595,200 
        
        
          6,973 
        
        
          4.65%
        
        
          180,933 
        
        
          1,172 
        
        
          2.57%
        
      
      
        
          Total interest-bearing deposits
        
        
          4,102,404 
        
        
          33,515 
        
        
          3.24%
        
        
          3,914,166 
        
        
          19,776 
        
        
          2.00%
        
      
      
        
          Short-term borrowings
        
        
          299,675 
        
        
          3,674 
        
        
          4.86%
        
        
          350,989 
        
        
          3,290 
        
        
          3.72%
        
      
      
        
          CODES
        
        
          - 
        
        
          - 
        
        
          0.00%
        
        
          93,304 
        
        
          131 
        
        
          0.56%
        
      
      
        
          Subordinated debt
        
        
          251,677 
        
        
          5,355 
        
        
          8.44%
        
        
          210,311 
        
        
          4,446 
        
        
          8.39%
        
      
      
        
          Other long-term borrowings
        
        
          579,694 
        
        
          7,598 
        
        
          5.20%
        
        
          417,583 
        
        
          5,071 
        
        
          4.82%
        
      
      
        
          Total interest-bearing liabilities
        
        
          5,233,450 
        
        
          50,142 
        
        
          3.80%
        
        
          4,986,353 
        
        
          32,714 
        
        
          2.60%
        
      
      
        
          Noninterest-bearing deposits
        
        
          993,457 
        
        
        
        
        
        
          1,132,668 
        
        
        
        
        
      
      
        
          Other noninterest-bearing liabilities
        
        
          274,367 
        
        
        
        
        
        
          282,409 
        
        
        
        
        
      
      
        
          Minority Interest: Preferred stock of real estate investment trust 
          subsidiaries
        
        
          12,796 
        
        
        
        
        
        
          12,634 
        
        
        
        
        
      
      
        
          Shareholders' equity
        
        
          826,468 
        
        
           
        
        
        
        
          773,902 
        
        
           
        
        
        
      
      
        
          Total shareholders' equity and liabilities
        
        
          $ 7,340,538 
        
        
          50,142 
        
        
        
        
          $ 7,187,966 
        
        
          32,714 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income, on a tax-equivalent basis (1)
        
        
        
        
          64,281 
        
        
        
        
        
        
          68,495 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest margin (5)
        
        
        
        
        
        
          3.97%
        
        
        
        
        
        
          4.32%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Reconciliation to reported net interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Adjustment for tax equivalent basis
        
        
        
        
          (507)
        
        
        
        
        
        
          (499)
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income, as reported
        
        
        
        
          $ 63,774 
        
        
        
        
        
        
          $ 67,996 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (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 loan fees, net of the amortization 
          of deferred costs, resulted in an increase of interest income on 
          loans by $364,000 and $841,000 for the three months ended 
          September 30, 2006 and September 30, 2005, 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
        
      
      
        
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
        
      
      
        
          (Dollars in 000's)
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Year to date
        
      
      
        
        
        
          September 30, 2006
        
        
          September 30, 2005
        
      
      
        
        
        
        
        
        
        
          Average
        
        
        
        
        
        
          Average
        
      
      
        
        
        
          Average
        
        
        
        
          yield /
        
        
          Average
        
        
        
        
          yield /
        
      
      
        
          Tax-Equivalent Basis (1)
        
        
          balance (2)
        
        
          Interest
        
        
          rate
        
        
          balance (2)
        
        
          Interest
        
        
          rate
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          INTEREST-EARNING ASSETS:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Fed funds sold
        
        
          $ 18,813 
        
        
          $ 692 
        
        
          4.92%
        
        
          $ 38,412 
        
        
          $ 789 
        
        
          2.75%
        
      
      
        
          Securities:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Taxable
        
        
          1,456,380 
        
        
          49,191 
        
        
          4.52%
        
        
          1,480,290 
        
        
          47,196 
        
        
          4.26%
        
      
      
        
          Tax-exempt (1)
        
        
          86,718 
        
        
          4,625 
        
        
          7.13%
        
        
          84,012 
        
        
          4,472 
        
        
          7.12%
        
      
      
        
          Other short-term (3)
        
        
          9,701 
        
        
          164 
        
        
          2.26%
        
        
          8,117 
        
        
          95 
        
        
          1.56%
        
      
      
        
          Loans (4)
        
        
          4,727,539 
        
        
          272,813 
        
        
          7.72%
        
        
          4,581,382 
        
        
          237,486 
        
        
          6.93%
        
      
      
        
          Total interest-earning assets
        
        
          6,299,151 
        
        
          327,485 
        
        
          6.95%
        
        
          6,192,213 
        
        
          290,038 
        
        
          6.26%
        
      
      
        
          Noninterest-earning assets
        
        
          903,335 
        
        
          - 
        
        
        
        
          886,871 
        
        
          - 
        
        
        
      
      
        
          Total assets
        
        
          $ 7,202,486 
        
        
          327,485 
        
        
        
        
          $ 7,079,084 
        
        
          290,038 
        
        
        
      
      
        
          INTEREST-BEARING LIABILITIES:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Deposits:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          MMDA, NOW and Savings
        
        
          $ 2,824,987 
        
        
          46,202 
        
        
          2.19%
        
        
          $ 3,130,250 
        
        
          39,596 
        
        
          1.69%
        
      
      
        
          Time deposits over $100,000
        
        
          774,767 
        
        
          25,294 
        
        
          4.36%
        
        
          662,113 
        
        
          13,175 
        
        
          2.66%
        
      
      
        
          Other time deposits
        
        
          424,817 
        
        
          13,722 
        
        
          4.32%
        
        
          151,668 
        
        
          2,625 
        
        
          2.31%
        
      
      
        
          Total interest-bearing deposits
        
        
          4,024,571 
        
        
          85,218 
        
        
          2.83%
        
        
          3,944,031 
        
        
          55,396 
        
        
          1.88%
        
      
      
        
          Short-term borrowings
        
        
          283,572 
        
        
          9,604 
        
        
          4.53%
        
        
          339,960 
        
        
          8,870 
        
        
          3.49%
        
      
      
        
          CODES
        
        
          24,758 
        
        
          101 
        
        
          0.55%
        
        
          154,463 
        
        
          631 
        
        
          0.55%
        
      
      
        
          Subordinated debt
        
        
          229,066 
        
        
          14,779 
        
        
          8.63%
        
        
          210,311 
        
        
          13,135 
        
        
          8.24%
        
      
      
        
          Other long-term borrowings
        
        
          534,221 
        
        
          20,061 
        
        
          5.02%
        
        
          291,833 
        
        
          11,063 
        
        
          5.00%
        
      
      
        
          Total interest-bearing liabilities
        
        
          5,096,188 
        
        
          129,763 
        
        
          3.40%
        
        
          4,940,598 
        
        
          89,095 
        
        
          2.41%
        
      
      
        
          Noninterest-bearing deposits
        
        
          1,016,102 
        
        
        
        
        
        
          1,089,518 
        
        
        
        
        
      
      
        
          Other noninterest-bearing liabilities
        
        
          271,014 
        
        
        
        
        
        
          264,535 
        
        
        
        
        
      
      
        
          Minority Interest: Preferred stock of real estate investment trust 
          subsidiaries
        
        
          12,756 
        
        
        
        
        
        
          12,599 
        
        
        
        
        
      
      
        
          Shareholders' equity
        
        
          806,426 
        
        
           
        
        
        
        
          771,834 
        
        
           
        
        
        
      
      
        
          Total shareholders' equity and liabilities
        
        
          $ 7,202,486 
        
        
          129,763 
        
        
        
        
          $ 7,079,084 
        
        
          89,095 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income, on a tax-equivalent basis (1)
        
        
        
        
          197,722 
        
        
        
        
        
        
          200,943 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest margin (5)
        
        
        
        
        
        
          4.20%
        
        
        
        
        
        
          4.34%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Reconciliation to reported net interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Adjustment for tax equivalent basis
        
        
        
        
          (1,494)
        
        
        
        
        
        
          (1,480)
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income, as reported
        
        
        
        
          $ 196,228 
        
        
        
        
        
        
          $ 199,463 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (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 loan fees, net of the amortization 
          of deferred costs, resulted in an increase of interest income on 
          loans by $1,211,000 and $838,000 for the nine months ended 
          September 30, 2006 and September 30, 2005, 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
        
      
      
        
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
        
      
      
        
        
        
          (Dollars and shares in 000's, except per share data)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          SELECTED CONSOLIDATED CREDIT QUALITY DATA:
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Sep 30
        
        
          Jun 30
        
        
          Mar 31
        
        
          Dec 31
        
        
          Sep 30
        
      
      
        
           
        
        
           
        
        
           
        
        
          2006 
        
        
          2006 
        
        
          2006 
        
        
          2005 
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Nonperforming assets (1)
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Commercial:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Matsco/GBC
        
        
          $ 8,323 
        
        
          $ 7,257 
        
        
          $ 8,011 
        
        
          $ 8,883 
        
        
          $ 9,299 
        
      
      
        
        
        
        
        
          SBA
        
        
          2,881 
        
        
          4,536 
        
        
          3,627 
        
        
          6,497 
        
        
          7,612 
        
      
      
        
        
        
        
        
          Other
        
        
          6,458 
        
        
          4,775 
        
        
          9,184 
        
        
          9,142 
        
        
          7,578 
        
      
      
        
        
        
          Total commercial
        
        
          17,662 
        
        
          16,568 
        
        
          20,822 
        
        
          24,522 
        
        
          24,489 
        
      
      
        
        
        
          Real estate:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Commercial
        
        
          10,939 
        
        
          14,763 
        
        
          8,203 
        
        
          8,434 
        
        
          9,844 
        
      
      
        
        
        
        
        
          Construction and land
        
        
          323 
        
        
          323 
        
        
          3,242 
        
        
          323 
        
        
          - 
        
      
      
        
        
        
        
        
          Other
        
        
          - 
        
        
          3 
        
        
          7 
        
        
          33,312 
        
        
          33,777 
        
      
      
        
        
        
          Total real estate
        
        
          11,262 
        
        
          15,089 
        
        
          11,452 
        
        
          42,069 
        
        
          43,621 
        
      
      
        
        
        
          Consumer and other
        
        
          139 
        
        
          611 
        
        
          718 
        
        
          4,503 
        
        
          3,821 
        
      
      
        
        
        
        
        
          Total nonaccrual loans
        
        
          29,063 
        
        
          32,268 
        
        
          32,992 
        
        
          71,094 
        
        
          71,931 
        
      
      
        
        
        
          OREO
        
        
          - 
        
        
          - 
        
        
          - 
        
        
          - 
        
        
          - 
        
      
      
        
        
        
          Other nonperforming assets
        
        
          603 
        
        
          361 
        
        
          438 
        
        
          631 
        
        
          1,153 
        
      
      
        
        
        
        
        
          
            Total non-performing assets (1)
          
        
        
          $ 29,666 
        
        
          $ 32,629 
        
        
          $ 33,430 
        
        
          $ 71,725 
        
        
          $ 73,084 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loan charge-offs (recoveries) (2)
        
        
          $ 223 
        
        
          $ 2,662 
        
        
          $ 43 
        
        
          $ 1,207 
        
        
          $ 3,098 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Ratio of allowance for loan and lease losses to:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          End of period loans
        
        
          1.48%
        
        
          1.50%
        
        
          1.58%
        
        
          1.74%
        
        
          1.98%
        
      
      
        
        
        
          Total nonaccrual loans
        
        
          245.41%
        
        
          222.17%
        
        
          226.02%
        
        
          115.56%
        
        
          129.09%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Ratio of (recovery of ) / provision for credit losses to average 
          loans, annualized
        
        
          -0.04%
        
        
          -0.16%
        
        
          -0.52%
        
        
          -0.89%
        
        
          -0.28%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total nonaccrual loans to total loans
        
        
          0.60%
        
        
          0.68%
        
        
          0.70%
        
        
          1.50%
        
        
          1.53%
        
      
      
        
          Total nonperforming assets to total assets
        
        
          0.40%
        
        
          0.44%
        
        
          0.47%
        
        
          1.01%
        
        
          1.03%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Ratio of quarterly net loan charge-offs to average loans, annualized
        
        
          0.02%
        
        
          0.23%
        
        
          0.00%
        
        
          0.10%
        
        
          0.26%
        
      
      
        
          Ratio of YTD net loan charge-offs to YTD average loans
        
        
          0.08%
        
        
          0.12%
        
        
          0.00%
        
        
          0.24%
        
        
          0.29%
        
      
      
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (1) Nonperforming assets include nonaccrual loans, other real estate 
          owned and other nonperforming assets.
        
      
      
        
           
        
      
      
        
          (2) Net loan charge-offs are loan charge-offs net of recoveries.
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          SELECTED QUARTERLY CAPITAL RATIOS AND DATA:
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
          Sep 30
        
        
          Jun 30
        
        
          Mar 31
        
        
          Dec 31
        
        
          Sep 30
        
      
      
        
           
        
        
           
        
        
           
        
        
          2006 
        
        
          2006 
        
        
          2006 
        
        
          2005 
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tier 1 leverage ratio
        
        
          10.63%
        
        
          12.07%
        
        
          10.77%
        
        
          10.41%
        
        
          10.23%
        
      
      
        
          Tier 1 risk-based capital ratio
        
        
          12.15%
        
        
          13.49%
        
        
          12.48%
        
        
          12.01%
        
        
          12.25%
        
      
      
        
          Total risk-based capital ratio
        
        
          13.40%
        
        
          14.93%
        
        
          13.73%
        
        
          13.26%
        
        
          13.51%
        
      
      
        
          Total equity to assets ratio
        
        
          11.41%
        
        
          11.05%
        
        
          11.16%
        
        
          10.90%
        
        
          10.88%
        
      
      
        
          Common equity to assets ratio
        
        
          10.01%
        
        
          9.66%
        
        
          9.71%
        
        
          9.45%
        
        
          9.43%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tier I capital
        
        
          $ 748,071 
        
        
          $ 824,154 
        
        
          $ 734,692 
        
        
          $ 708,563 
        
        
          $ 702,030 
        
      
      
        
          Total risk-based capital
        
        
          $ 825,036 
        
        
          $ 911,802 
        
        
          $ 808,436 
        
        
          $ 782,525 
        
        
          $ 774,044 
        
      
      
        
          Risk weighted assets
        
        
          $ 6,155,489 
        
        
          $ 6,108,101 
        
        
          $ 5,889,032 
        
        
          $ 5,900,425 
        
        
          $ 5,730,710 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          NON-GAAP RATIOS (1):
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Tangible common equity to tangible assets - end of period (2)
        
        
          6.34%
        
        
          5.96%
        
        
          5.86%
        
        
          5.56%
        
        
          5.58%
        
      
      
        
        
        
          Tangible common book value per common share - end of period (3)
        
        
          $ 8.75 
        
        
          $ 8.29 
        
        
          $ 7.95 
        
        
          $ 7.61 
        
        
          $ 7.51 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Common book value per common share - end of period (4)
        
        
          $ 14.38 
        
        
          $ 13.98 
        
        
          $ 13.73 
        
        
          $ 13.48 
        
        
          $ 13.22 
        
      
      
        
        
        
          Total common shares outstanding - end of period
        
        
          51,047 
        
        
          50,917 
        
        
          50,288 
        
        
          49,906 
        
        
          50,425 
        
      
      
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (1) The following table provides a reconciliation of common equity 
          to tangible common equity and total assets to tangible assets:
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Common shareholders' equity
        
        
          $ 733,816 
        
        
          $ 711,617 
        
        
          $ 690,484 
        
        
          $ 672,624 
        
        
          $ 666,701 
        
      
      
        
        
        
          Less: goodwill and other Intangible assets
        
        
          (287,202)
        
        
          (289,570)
        
        
          (290,733)
        
        
          (293,030)
        
        
          (288,250)
        
      
      
        
        
        
        
        
          Tangible common equity
        
        
          $ 446,614 
        
        
          $ 422,047 
        
        
          $ 399,751 
        
        
          $ 379,594 
        
        
          $ 378,451 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total assets
        
        
          $ 7,333,355 
        
        
          $ 7,369,654 
        
        
          $ 7,108,506 
        
        
          $ 7,120,969 
        
        
          $ 7,073,308 
        
      
      
        
        
        
          Less: goodwill and other intangible assets
        
        
          (287,202)
        
        
          (289,570)
        
        
          (290,733)
        
        
          (293,030)
        
        
          (288,250)
        
      
      
        
        
        
        
        
          Tangible assets
        
        
          $ 7,046,153 
        
        
          $ 7,080,084 
        
        
          $ 6,817,773 
        
        
          $ 6,827,939 
        
        
          $ 6,785,058 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (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 - end 
          of period
        
      
      
        
           
        
      
      
        
          
            (4) Computed as common shareholders' equity divided by common 
            shares outstanding - end of period.
          
        
      
    
  
Greater Bay Bancorp (Nasdaq:GBBK), a $7.3 billion in assets
financial services holding company, today announced results for the
third quarter and nine months ended September 30, 2006.

   For the third quarter of 2006, the Company's net income was $18.5
million, or $0.32 per diluted common share, compared to $25.6 million,
or $0.44 per diluted common share, for the third quarter of 2005, and
$25.1 million, or $0.46 per diluted common share, for the second
quarter of 2006. For the first nine months of 2006, net income was
$69.5 million, or $1.24 per diluted common share, compared to $69.8
million, or $1.16 per diluted common share for the first nine months
of 2005.

   Operating results for the quarter reflected the recognition of
approximately $7.0 million of notable expenses which included the
following: $3.2 million of unamortized debt issuance costs that were
written off in connection with the redemption of trust preferred
securities in August 2006; $2.5 million in combined expenses related
to the rebranding of regional banking identities, consulting costs
related to the previously disclosed self-initiated review of
historical stock option practices, and transitional costs related to
the outsourcing of the Company's mainframe data processing operations;
and $1.3 million in costs at ABD related to severance and expenses
associated with the opening of ABD's new office in Oregon.

   For the third quarter of 2006, the Company's return on average
common equity, annualized, was 10.15% compared to 15.13% for the third
quarter of 2005, and 14.29% for the second quarter of 2006. Return on
average common equity, annualized, for the first nine months of 2006
was 13.22% compared to 13.96% for the same period in 2005. Return on
average assets, annualized, for the third quarter of 2006 was 1.00%
compared to 1.41% for the third quarter of 2005, and 1.41% for the
second quarter of 2006. Return on average assets, annualized, was
1.29% for the first nine months of 2006 compared to 1.32% for the same
period in 2005.

   "Our performance for the quarter was marked by the confluence of
several non-core or otherwise notable expenses which impacted our
bottom line results," stated Byron A. Scordelis, President and Chief
Executive Officer of Greater Bay Bancorp. "On a more sustained basis,
we are pleased to note the continuation of both solid loan growth and
exemplary credit quality during the most recent period. In the
insurance brokerage area, organic revenue growth was once again
favorable at ABD, and the Bank successfully completed the outsourcing
of its mainframe operations which will contribute to our broader and
ongoing cost reduction efforts in the future."

   "While period-end core deposit totals once again declined,
effectively all of that reduction occurred in the volatile title
company, venture capital, and 1031 exchange specialty deposit areas
which extended a cyclical trend that has been evident for several
quarters," Mr. Scordelis continued. "With both the growth and quality
of our loan portfolio well in hand, we are intently focused on
operating expense containment as well as long term growth and value in
our core deposit base as being key elements to drive our future
earnings performance."

   Net Interest Income and Margin

   Net interest income for the third quarter of 2006 decreased to
$63.8 million from $68.0 million in the third quarter of 2005, and
decreased from $65.8 million in the second quarter of 2006. Net
interest income for the first nine months of 2006 decreased to $196.2
million from $199.5 million for the same period of 2005.

   The net interest margin (on a fully tax-equivalent basis) for the
third quarter of 2006 was 3.97%, compared to 4.32% for the third
quarter of 2005 and 4.26% for the second quarter of 2006. The net
interest margin (on a fully tax equivalent basis) for the first nine
months of 2006 was 4.20% compared to 4.34% for the same period in
2005.

   "About half of the third quarter reduction in net interest margin
resulted from the combined effect of continued loan growth, core
deposit attrition, and upward pressure on core deposit costs," stated
James Westfall, Executive Vice President and Chief Financial Officer.
"The remaining change largely resulted from growth in our investment
portfolio, a period-to-period decline in deferred interest recognition
and prepayment fees, and a temporary increase in cash and cash
equivalents. We currently anticipate that our margin for the fourth
quarter will remain stabilized at or near third quarter levels which
has been reflected in our revised margin outlook for the full year,"
he concluded.

   Non-Interest Income

   Non-interest income for the third quarter of 2006 increased to
$55.5 million compared to $54.5 million in the third quarter of 2005.
This change was primarily attributable to a $1.8 million increase in
insurance brokerage commissions and fees.

   Non-interest income for the third quarter of 2006 decreased by
$1.3 million compared to the second quarter of 2006. This reduction
was primarily attributable to a $3.6 million reduction in warrant
portfolio income, partially offset by a $1.5 million increase in
insurance commissions and fees.

   Non-interest income for the first nine months of 2006 increased to
$172.3 million from $158.9 million for the same period of 2005. This
change was primarily attributable to an increase in insurance
brokerage commissions and fees of $9.6 million and an increase in
other income of $3.6 million including $3.9 million of warrant
portfolio appreciation.

   Non-interest income as a percentage of total revenues for the
third quarter of 2006 was 46.5%, compared to 44.5% for the third
quarter of 2005 and 46.3% for the second quarter of 2006. Non-interest
income as a percentage of total revenues for the first nine months of
2006 was 46.7%, compared to 44.3% for the same period one year ago.

   "We are encouraged by the continued revenue growth being achieved
by ABD in the face of ongoing pressures on premium levels in the
property and casualty and workers' compensation areas," commented Mr.
Scordelis. "Of equal significance, ABD entered the Oregon market by
opening a new office in Eugene during the quarter, continuing ABD's
progress in implementing its strategic objective of achieving a
preeminent presence and share position on the West Coast."

   Operating Expenses

   Operating expenses for the third quarter of 2006 increased to
$91.1 million from $84.6 million in the third quarter of 2005.
Operating expenses for the third quarter of 2006 increased to $91.1
million from $84.5 million in the second quarter of 2006. This expense
growth was primarily attributable to the following:

   --  Write-off of $3.2 million in unamortized debt issuance costs
        associated with the redemption of trust preferred securities,

   --  Combined costs of $2.5 million associated with the rebranding
        of banking identities, consulting costs related to the
        previously disclosed self-initiated review of historical stock
        option practices, and outsourcing of the Company's mainframe
        computer operations, and

   --  Costs of $1.3 million at ABD related to severance and expenses
        associated with the opening of its new office in Oregon.

   Operating expenses for the first nine months of 2006 increased to
$267.7 million from $249.7 million for the first nine months of 2005.
In addition to the items noted above, expense growth during this
period was also attributable to:

   --  Expenses of $10.2 million representing the full year impact in
        2006 of expenses resulting from the Lucini/Parish acquisition
        in May 2005 and ABD's opening of new office locations in San
        Diego and Denver, and

   --  Expenses of $2.3 million due to accelerated vesting of
        restricted stock and adoption of FAS 123R.

   "In the current cyclical period of margin and revenue pressure,
cost rationalization is clearly of increased importance. As a result
of focused expense reduction initiatives currently underway, we fully
expect total normalized core operating expenses to decrease in 2007
from actual 2006 levels," stated Mr. Scordelis.

   Credit Quality Overview

   Net loan charge-offs in the third quarter of 2006 were $0.2
million, or 0.02% of average loans, annualized, compared to $3.1
million, or 0.26% of average loans, for the third quarter of 2005 and
$2.7 million, or 0.23% of average loans, for the second quarter of
2006. Net loan charge-offs for the first nine months of 2006 were $2.9
million, or 0.08% of average loans, annualized, compared to $10.1
million or 0.29% for the same period in 2005.

   Provision for credit losses was a negative provision of $0.4
million for the third quarter of 2006, compared to a negative
provision of $3.4 million for the third quarter of 2005, and a
negative provision of $1.9 million for the second quarter of 2006. The
provision for the first nine months of 2006 was a negative $8.3
million, compared to a negative $2.8 million for the first nine months
of 2005.

   Non-performing assets were $29.7 million at September 30, 2006,
compared to $73.1 million at September 30, 2005 and $32.6 million at
June 30, 2006. The ratio of non-performing assets to total assets was
0.40% at September 30, 2006, compared to 1.03% at September 30, 2005
and 0.44% at June 30, 2006. The ratio of non-accrual loans to total
loans was 0.60% at September 30, 2006, compared to 1.53% at September
30, 2005 and 0.68% at June 30, 2006.

   Allowance for loan and lease losses was $71.3 million, or 1.48% of
total loans at September 30, 2006, compared to $92.9 million, or 1.98%
of total loans, at September 30, 2005 and $71.7 million, or 1.50% of
total loans, at June 30, 2006.

   "We continue to be pleased with the quality of our credit
portfolio," commented Mr. Scordelis. "Non-performing loan levels
continued their downward trend, and now stand fully sixty percent
below the dollar level of one year ago. Net charge-offs were also
extremely well contained. An assessment of these and other key credit
metrics gave rise to our decision to favorably adjust our guidance in
this area for the full year of 2006," he concluded.

   Balance Sheet

   At September 30, 2006, total assets were $7.3 billion, total net
loans were $4.8 billion, total securities were $1.6 billion, and total
deposits were $5.1 billion.

   Total loans net of deferred costs and fees increased by $149.6
million from September 30, 2005 to September 30, 2006. This growth
reflects increases of $143.4 million in real estate construction and
land loans, and $131.0 million in commercial loans. These increases
were partially offset by decreases of $70.1 million in the commercial
term real estate loan portfolio, $38.6 million in real estate other
and $36.9 million in consumer and other loans.

   Total loans net of deferred costs and fees increased by $61.7
million from June 30, 2006 to September 30, 2006, representing an
annualized growth rate of 5.12% for the quarter. This growth reflects
an increase of $63.9 in commercial loans and $22.0 million in
commercial term real estate loans, partially offset by decreases of
$22.7 million in consumer and other loans and $9.0 million in
construction and land loans.

   "We are pleased with our fourth consecutive quarter of core loan
expansion, particularly since this growth was once again concentrated
in the targeted area of commercial lending. With our specialty finance
business activity remaining strong and our community banking business
posting tangible growth during the period, we continue to track to the
expectations reflected in our existing guidance," indicated Mr.
Scordelis.

   Securities totaled $1.6 billion as of September 30, 2006, compared
to $1.5 billion at September 30, 2005 and $1.6 billion at June 30,
2006.

   Core deposits (excluding institutional and brokered deposits) at
September 30, 2006 decreased by $479.8 million compared to September
30, 2005 and decreased by $154.6 million compared to June 30, 2006.

   According to Mr. Scordelis, "While core deposit levels continue to
be affected by the volatility of large specialty accounts and upward
pressure on core deposit costs, we are encouraged that money market
account totals in our community banking area remained virtually flat
during the quarter. Given this overall challenging environment, we
have redoubled our focus on steps aimed at ensuring the restoration of
well-priced growth in our deposit portfolio," he added.

   Capital Overview

   The capital ratios of Greater Bay Bancorp and its subsidiary bank
continue to exceed minimum well-capitalized guidelines established by
bank regulatory agencies.

   The Company's common equity to assets ratio was 10.01% at
September 30, 2006, compared to 9.43% at September 30, 2005 and 9.66%
at June 30, 2006. The Company's tangible common equity to tangible
assets ratio was 6.34% at September 30, 2006, compared to 5.58% at
September 30, 2005 and 5.96% at June 30, 2006.

   Other Matters

   In September 2006, the SEC staff issued Staff Accounting Bulletin
No. 108, "Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements" (SAB
108). The Company will adopt SAB 108 as of December 31, 2006 and
initially apply its provisions using the cumulative effect transition
method in connection with the preparation of its annual financial
statements for the year ending December 31, 2006.

   Upon adoption of SAB 108, the Company expects to increase net
income for the year ending December 31, 2006 by approximately $1.3
million and, as of January 1, 2006, record an increase to common stock
of approximately $3.4 million and a reduction in retained earnings of
approximately $4.7 million. The increase in net income results from
the reversal of entries recorded during the first and second quarters
of 2006 to correct immaterial errors related to periods prior to 2006.
The increase in common stock relates to previously uncorrected errors
in recording tax benefits arising from stock option tax deductions
during the years 1996 through 2005.

   Outlook for 2006

   Our full year guidance for 2006 has been updated as follows:

   --  Core Loan Growth - based on the current forecast of moderate
        economic growth in our primary market area, we anticipate core
        loan portfolio growth in the mid to high single digit range.

   --  Core Deposit Growth - we do not currently contemplate a
        near-term recovery of the core deposit outflow experienced in
        the first nine months of 2006, and now expect core deposit
        totals to remain flat for the balance of the year relative to
        the quarter end balance at September 30, 2006.

   --  Credit Quality - based on our continued credit risk management
        and the current economic outlook, we anticipate full year net
        charge-offs to range from 12 basis points to 15 basis points
        of average loans outstanding.

   --  Net Interest Margin - based on the Company's anticipated core
        loan growth and core deposit stability and its neutral
        interest rate sensitivity position, we expect the full year
        margin level to fluctuate in the 4.10% to 4.15% range.

   Conference Call

   The Company will broadcast its earnings conference call live via
the Internet at 8:00 a.m. (PST) on Monday, October 30, 2006.
Participants may access this conference call through the Company's
website at http://www.gbbk.com, under the "Investor Info" link, or
through http://www.earnings.com. You should go to either of these
websites 15 minutes prior to the start of the call, as it may be
necessary to download audio software to hear the conference call.

   A replay of the conference call will be available on the websites.
A telephone replay will also be available beginning at 11:00 a.m. PST
on October 30, 2006 through 9:00 p.m. PST on November 6, 2006, by
dialing 800-642-1687 or 706-645-9291 and providing Conference ID
9745265.

   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,
CAPCO 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 reserves, growth in loans and
deposits, the strength of the local economy and the Company's intent
to adopt SAB 108 as of December 31, 2006. 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, 2005. 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.

-0-
*T
                         GREATER BAY BANCORP
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
         (Dollars and shares in 000's, except per share data)

----------------------------------------------------------------------
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:

                             Third   Second    First   Fourth    Third
                           Quarter  Quarter  Quarter  Quarter  Quarter
                             2006     2006     2006     2005     2005
                         ---------------------------------------------
Interest income          $113,916 $108,321 $103,754 $102,225 $100,710
Interest expense           50,142   42,487   37,134   34,478   32,714
                         ---------------------------------------------
  Net interest income
   before (recovery of) /
   provision for credit
   losses                  63,774   65,834   66,620   67,747   67,996
(Recovery of) / provision
 for credit losses           (443)  (1,886)  (6,004) (10,491)  (3,352)
                         ---------------------------------------------
  Net interest income
   after (recovery of) /
   provision for credit
   losses                  64,217   67,720   72,624   78,238   71,348

Non-interest income:
  Insurance commissions
   and fees                41,757   40,235   44,969   37,071   39,974
  Rental revenue on
   operating leases         4,632    4,790    5,264    4,906    4,901
  Service charges and
   other fees               2,363    2,368    2,540    2,533    2,496
  Loan and international
   banking fees             1,960    1,718    1,795    1,919    1,663
  Income on bank owned
   life insurance           2,038    1,922    1,911    1,869    1,877
  Trust fees                1,059    1,127    1,055    1,101    1,074
  Gains on sale of loans      (14)       -        -      172      100
  Security gains, net          40        5      168        -       43
  Other income              1,617    4,605    2,331    3,438    2,361
                         ---------------------------------------------
    Total non-interest
     income                55,452   56,770   60,033   53,009   54,489

Operating expenses:
  Compensation and
   benefits                52,548   51,500   57,929   51,455   50,745
  Occupancy and equipment  11,896   12,241   11,322   11,285   11,278
  Legal costs and other
   professional fees        5,074    3,884    3,753    5,295    4,671
  Depreciation -
   operating leases         3,665    3,917    4,091    4,013    4,108
  Amortization of
   intangibles              1,678    1,689    1,640    1,835    1,886
  Other expenses           16,220   11,255   13,379   12,476   11,936
                         ---------------------------------------------
    Total operating
     expenses              91,081   84,486   92,114   86,359   84,624

Income before provision
 for income taxes and
 cumulative effect of
 accounting change         28,588   40,004   40,543   44,888   41,213
Provision for income
 taxes                     10,076   14,886   14,772   17,433   15,626
                         ---------------------------------------------
Income before cumulative
 effect of accounting
 change                    18,512   25,118   25,771   27,455   25,587
Cumulative effect of
 accounting change, net
 of tax (1)                     -        -      130        -        -
                         ---------------------------------------------
  Net income              $18,512  $25,118  $25,901  $27,455  $25,587
                         =============================================


----------------------------------------------------------------------

EARNINGS PER SHARE DATA:
Net Income per common share before cumulative effect of
 accounting change (2)
  Basic                     $0.33    $0.46    $0.48    $0.51    $0.47
  Diluted                   $0.32    $0.46    $0.46    $0.48    $0.44

Net Income per common share after cumulative effect of
 accounting change (2)
  Basic                     $0.33    $0.46    $0.48    $0.51    $0.47
  Diluted                   $0.32    $0.46    $0.46    $0.48    $0.44

Weighted average common
 shares outstanding        50,423   50,188   49,802   50,251   50,698
Weighted average common &
 potential common shares
 outstanding               51,366   51,173   52,727   53,370   54,010

GAAP ratios
  Return on quarterly
   average assets,
   annualized                1.00%    1.41%    1.47%    1.53%    1.41%
  Return on quarterly
   average common
   shareholders' equity,
   annualized               10.15%   14.29%   15.42%   16.25%   15.13%
  Return on quarterly
   average total equity,
   annualized                8.89%   12.47%   13.39%   14.09%   13.12%
  Net interest margin,
   annualized (3)            3.97%    4.26%    4.35%    4.36%    4.32%
  Operating expense
   ratio, annualized (4)     4.92%    4.75%    5.24%    4.81%    4.67%
  Efficiency ratio (5)      76.39%   68.91%   72.73%   71.52%   69.09%

NON-GAAP ratios
  Efficiency ratio
   (excluding ABD & other
   ABD expenses paid by
   holding company) (6)     69.63%   59.53%   67.76%   62.31%   59.50%

-------------------------

(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 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.

  Income before
   cumulative effect of
   accounting change as
   reported               $18,512  $25,118  $25,771  $27,455  $25,587
  Less: dividends on
   convertible preferred
   stock                   (1,832)  (1,822)  (1,832)  (1,825)  (1,834)
                         ---------------------------------------------
  Income available to
   common shareholders
   before cumulative
   effect of accounting
   change                  16,680   23,296   23,939   25,630   23,753
  Add: CODES interest and
   other related
   income/(loss), net of
   taxes                        -        -       59      (99)      76
                         ---------------------------------------------
  Income available to
   common shareholders
   before cumulative
   effect of accounting
   change                  16,680   23,296   23,998   25,531   23,829
  Cumulative effect of
   accounting change, net
   of tax                       -        -      130        -        -
                         ---------------------------------------------
  Income available to
   common shareholders
   after cumulative
   effect of accounting
   change                 $16,680  $23,296  $24,128  $25,531  $23,829
                         =============================================

  Weighted average common
   shares outstanding      50,423   50,188   49,802   50,251   50,698
  Weighted average
   potential common
   shares:
    Stock options             943      985      946      939      878
    CODES due 2024              -        -    1,979    2,180    2,426
    CODES due 2022              -        -        -        -        8
                         ---------------------------------------------
  Total weighted average
   common & potential
   common shares
   outstanding             51,366   51,173   52,727   53,370   54,010
                         =============================================

(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)                 $77,083  $82,180  $81,183  $83,614  $81,796
    Operating expenses
     (excluding ABD &
     other ABD expenses
     paid by holding
     company)             $53,670  $48,922  $55,010  $52,102  $48,667
*T

-0-
*T
                         GREATER BAY BANCORP
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
         (Dollars and shares in 000's, except per share data)

----------------------------------------------------------------------
SELECTED QUARTERLY CONSOLIDATED OPERATING DATA:

                                                 Nine Months Ended
                                                    September 30,
                                                  2006        2005
                                               -----------------------
Interest income                                   $325,991   $288,558
Interest expense                                   129,763     89,095
                                               -----------------------
  Net interest income before (recovery of) /
   provision for credit losses                     196,228    199,463
(Recovery of) / provision for credit losses         (8,333)    (2,778)
                                               -----------------------
  Net interest income after (recovery of) /
   provision for credit losses                     204,561    202,241

Non-interest income:
  Insurance commissions and fees                   126,961    117,319
  Rental revenue on operating leases                14,686     13,396
  Service charges and other fees                     7,271      7,915
  Loan and international banking fees                5,473      5,789
  Income on bank owned life insurance                5,871      5,679
  Trust fees                                         3,241      3,200
  Gains on sale of loans                               (14)       306
  Security gains, net                                  213        342
  Other income                                       8,553      4,977
                                               -----------------------
     Total non-interest income                     172,255    158,923

Operating expenses:
  Compensation and benefits                        161,977    149,202
  Occupancy and equipment                           35,459     32,838
  Legal costs and other professional fees           12,711     12,720
  Depreciation - operating leases                   11,673     11,213
  Amortization of intangibles                        5,007      6,041
  Other expenses                                    40,854     37,688
                                               -----------------------
     Total operating expenses                      267,681    249,702

Income before provision for income taxes and
 cumulative effect of accounting change            109,135    111,462
Provision for income taxes                          39,734     41,690
                                               -----------------------
Income before cumulative effect of accounting
 change                                             69,401     69,772
Cumulative effect of accounting change, net of
 tax (1)                                               130          -
                                               -----------------------
  Net income                                       $69,531    $69,772
                                               =======================


----------------------------------------------------------------------

EARNINGS PER SHARE DATA:
Net Income per common share before cumulative
 effect of accounting change (2)
  Basic                                              $1.27      $1.26
  Diluted                                            $1.24      $1.16

Net Income per common share after cumulative
 effect of accounting change (2)
  Basic                                              $1.28      $1.26
  Diluted                                            $1.24      $1.16

Weighted average common shares outstanding          50,159     50,891
Weighted average common & potential common
 shares outstanding                                 51,536     55,824

GAAP ratios
  Return on YTD average assets, annualized            1.29%      1.32%
  Return on YTD common shareholders' equity,
   annualized                                        13.22%     13.96%
  Return on YTD average total equity,
   annualized                                        11.53%     12.09%
  Net interest margin, annualized (3)                 4.20%      4.34%
  Operating expense ratio, annualized (4)             4.97%      4.72%
  Efficiency ratio (5)                               72.64%     69.67%

NON-GAAP ratios
  Efficiency Ratio (excluding ABD & other ABD
   expenses paid by holding company) (6)             65.55%     62.53%

-----------------------------------------------

(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.

  Income before cumulative effect of accounting
   change as reported                              $69,401    $69,772
  Less: dividends on convertible preferred
   stock                                            (5,486)    (5,515)
                                               -----------------------
  Net Income available to common shareholders
   before cumulative effect of accounting
   change                                           63,915     64,257
  Add: CODES interest and other related
   income/(loss), net of taxes                          59        366
                                               -----------------------
  Income available to common shareholders
   before cumulative effect of accounting
   change                                           63,974     64,623
  Cumulative effect of accounting change, net
   of tax                                              130          -
                                               -----------------------
  Income available to common shareholders after
   cumulative effect of accounting change          $64,104    $64,623
                                               =======================


  Weighted average common shares outstanding        50,159     50,891
  Weighted average potential common shares:
     Stock options                                     725        927
     CODES due 2024                                    652      3,993
     CODES due 2022                                      -         13
                                               -----------------------
  Total weighted average common & potential
   common shares outstanding                        51,536     55,824
                                               =======================

(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 information is for
 calculating the efficiency ratio excluding ABD:

     Revenue (Excluding ABD)                      $240,446   $239,730
     Operating Expenses (Excluding ABD & other
      ABD expenses paid by holding company)       $157,602   $149,904
*T

-0-
*T
                         GREATER BAY BANCORP
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
                          (Dollars in 000's)

----------------------------------------------------------------------
SELECTED CONSOLIDATED FINANCIAL CONDITION DATA AND RATIOS:

                 Sep 30     Jun 30     Mar 31     Dec 31     Sep 30
                  2006       2006       2006       2005       2005
               -------------------------------------------------------
Cash and cash
 equivalents     $160,572   $198,716   $167,203   $152,153   $153,284
Fed funds sold          -     36,000          -          -     20,000
Securities      1,572,109  1,565,732  1,468,123  1,493,584  1,487,935
Loans:
 Commercial (1) 2,136,235  2,072,334  2,046,402  2,052,049  2,005,198
 Term real
  estate -
  commercial    1,362,794  1,340,762  1,389,635  1,389,329  1,432,939
               -------------------------------------------------------
  Total
   commercial
   (1)          3,499,029  3,413,096  3,436,037  3,441,378  3,438,137
 Real estate
  construction
  and land        753,416    762,409    688,086    644,883    609,969
 Residential
  mortgage        277,038    275,332    271,658    266,263    258,268
 Real estate
  other           223,373    217,889    230,190    263,164    261,969
 Consumer and
  other (1)        79,131    101,821    100,468    109,168    116,026
 Deferred costs
  and fees, net
  (1)               4,278      4,066      3,285      3,113      2,344
               -------------------------------------------------------
  Total loans,
   net of
   deferred
   costs and
   fees (1)     4,836,265  4,774,613  4,729,724  4,727,969  4,686,713
 Allowance for
  loan and
  lease losses    (71,323)   (71,689)   (74,568)   (82,159)   (92,857)
               -------------------------------------------------------
  Total loans,
   net          4,764,942  4,702,924  4,655,156  4,645,810  4,593,856
Goodwill          242,687    243,343    242,728    243,289    236,511
Other
 intangible
 assets            44,515     46,227     48,005     49,741     51,739
Other assets      548,530    576,712    527,291    536,392    529,983
               -------------------------------------------------------
Total assets   $7,333,355 $7,369,654 $7,108,506 $7,120,969 $7,073,308
               =======================================================

Deposits:
 Demand,
  noninterest-
  bearing        $980,050 $1,015,734 $1,004,575 $1,093,157 $1,066,536
 MMDA, NOW and
  savings       2,613,387  2,734,656  2,957,354  3,000,647  3,003,159
 Time deposits,
  $100,000 and
  over            784,557    776,712    782,891    741,682    750,406
 Other time
  deposits        681,104    495,131    363,941    223,053    195,315
               -------------------------------------------------------
  Total
   deposits     5,059,098  5,022,233  5,108,761  5,058,539  5,015,416
               -------------------------------------------------------
Other
 borrowings       994,044    970,390    750,248    797,802    813,006
Subordinated
 debt             180,929    287,631    210,311    210,311    210,311
Other
 liabilities      249,553    261,907    232,866    265,607    252,510
               -------------------------------------------------------
  Total
   liabilities  6,483,624  6,542,161  6,302,186  6,332,259  6,291,243
               -------------------------------------------------------

Minority
 interest:
Preferred stock
 of real estate
 investment
 trust
 subsidiaries      12,821     12,780     12,739     12,699     12,658

Convertible
 preferred
 stock            103,094    103,096    103,097    103,387    102,706
Common
 shareholders'
 equity           733,816    711,617    690,484    672,624    666,701
               -------------------------------------------------------
  Total equity    836,910    814,713    793,581    776,011    769,407

               -------------------------------------------------------
Total
 liabilities
 and total
 equity        $7,333,355 $7,369,654 $7,108,506 $7,120,969 $7,073,308
               =======================================================

----------------------------------------------------------------------
RATIOS:

Loan growth,
 current
 quarter to
 prior year
 quarter             3.19%      0.72%      4.93%      5.34%      4.31%
Loan growth,
 current
 quarter to
 prior quarter,
 annualized          5.12%      3.81%      0.15%      3.49%     -4.50%
Loan growth,
 YTD                 3.06%      1.99%      0.15%      5.34%      5.91%

Core loan
 growth,
 current
 quarter to
 prior year
 quarter (2)         3.90%      1.32%      1.39%      0.57%     -1.13%
Core loan
 growth,
 current
 quarter to
 prior quarter,
 annualized (2)      5.91%      4.47%      0.66%      4.30%     -4.09%
Core loan
 growth, YTD
 (2)                 3.73%      2.58%      0.66%      0.57%     -0.68%

Deposit growth,
 current
 quarter to
 prior year
 quarter             0.87%      2.93%      2.26%     -0.87%     -3.47%
Deposit growth,
 current
 quarter to
 prior quarter,
 annualized          2.91%     -6.79%      4.03%      3.41%     11.07%
Deposit growth,
 YTD                 0.01%     -1.45%      4.03%     -0.87%     -2.29%

Core deposit
 growth,
 current
 quarter to
 prior year
 quarter (3)       -10.48%     -6.63%     -5.78%     -5.03%     -6.45%
Core deposit
 growth,
 current
 quarter to
 prior quarter,
 annualized (3)    -14.43%    -19.72%     -8.31%     -1.02%      2.02%
Core deposit
 growth, YTD
 (3)               -13.71%    -13.84%     -8.31%     -5.03%     -6.40%

Revenue growth,
 current
 quarter to
 prior year
 quarter (4)        -2.66%      2.46%      8.96%      7.03%      3.77%
Revenue growth,
 current
 quarter to
 prior quarter,
 annualized (4)    -10.93%    -12.82%     19.80%     -5.60%      9.35%

Net interest
 income growth,
 current
 quarter to
 prior year
 quarter            -6.21%      0.63%      0.88%     -0.52%     -3.23%
Net interest
 income growth,
 current
 quarter to
 prior quarter,
 annualized        -12.41%     -4.73%     -6.75%     -1.45%     15.59%

---------------

(1) In Q3 2006, $15.4 million of deferred costs and fees on leases
 were reclassified from commercial loans and consumer and other loans
 into net deferred costs and fees. Prior periods have been changed to
 conform to this presentation.

(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 (recovery of) /
 provision for credit losses and total non-interest income.
*T

-0-
*T
                         GREATER BAY BANCORP
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
                          (Dollars in 000's)

----------------------------------------------------------------------


SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:

                                            Three months ended
                                    ----------------------------------
                                           September 30, 2006
                                    ----------------------------------
                                                            Average
                                      Average               yield /
Tax-Equivalent Basis (1)            balance (2)  Interest     rate
----------------------------------------------------------------------

INTEREST-EARNING ASSETS:
 Fed funds sold                         $33,141       $432      5.18%
 Securities:
  Taxable                             1,509,123     17,537      4.61%
  Tax-exempt (1)                         91,142      1,590      6.92%
  Other short-term (3)                    9,993         83      3.29%
 Loans (4)                            4,785,791     94,781      7.86%
                                    -----------------------
    Total interest-earning assets     6,429,190    114,423      7.06%
Noninterest-earning assets              911,348          -
                                    -----------------------
         Total assets                $7,340,538    114,423
                                    ============-----------
INTEREST-BEARING LIABILITIES:
 Deposits:
  MMDA, NOW and Savings              $2,719,915     17,036      2.48%
  Time deposits over $100,000           787,289      9,506      4.79%
  Other time deposits                   595,200      6,973      4.65%
                                    -----------------------
     Total interest-bearing deposits  4,102,404     33,515      3.24%
Short-term borrowings                   299,675      3,674      4.86%
CODES                                         -          -      0.00%
Subordinated debt                       251,677      5,355      8.44%
Other long-term borrowings              579,694      7,598      5.20%
                                    -----------------------
      Total interest-bearing
       liabilities                    5,233,450     50,142      3.80%
Noninterest-bearing deposits            993,457
Other noninterest-bearing
 liabilities                            274,367
Minority Interest: Preferred stock
 of real estate investment trust
 subsidiaries                            12,796
Shareholders' equity                    826,468
                                    -----------------------
  Total shareholders' equity and
   liabilities                       $7,340,538     50,142
                                    ============-----------

Net interest income, on a tax-
 equivalent basis (1)                               64,281

Net interest margin (5)                                         3.97%
                                                           ===========

Reconciliation to reported net
 interest income:
------------------------------------

Adjustment for tax equivalent basis                   (507)
                                                -----------

Net interest income, as reported                   $63,774
                                                ===========






                                           Three months ended
                                    ---------------------------------
                                              June 30, 2006
                                    ---------------------------------
                                                            Average
                                       Average              yield /
Tax-Equivalent Basis (1)             balance (2) Interest     rate
------------------------------------ --------------------------------

INTEREST-EARNING ASSETS:
 Fed funds sold                         $10,791       $128      4.77%
 Securities:
  Taxable                             1,433,756     16,030      4.48%
  Tax-exempt (1)                         86,323      1,543      7.16%
  Other short-term (3)                    9,348         46      1.99%
 Loans (4)                            4,705,859     91,074      7.76%
                                     ----------------------
    Total interest-earning assets     6,246,077    108,821      6.99%
Noninterest-earning assets              888,886          -
                                     ----------------------
         Total assets                $7,134,963    108,821
                                     ===========-----------
INTEREST-BEARING LIABILITIES:
 Deposits:
  MMDA, NOW and Savings              $2,807,337     15,094      2.16%
  Time deposits over $100,000           780,415      8,466      4.35%
  Other time deposits                   414,765      4,381      4.24%
                                     ----------------------
     Total interest-bearing deposits  4,002,517     27,941      2.80%
Short-term borrowings                   262,439      2,947      4.50%
CODES                                         -          -      0.00%
Subordinated debt                       224,755      4,867      8.68%
Other long-term borrowings              547,494      6,732      4.93%
                                     ----------------------
      Total interest-bearing
       liabilities                    5,037,205     42,487      3.38%
Noninterest-bearing deposits          1,013,577
Other noninterest-bearing
 liabilities                            263,424
Minority Interest: Preferred stock
 of real estate investment trust
 subsidiaries                            12,756
Shareholders' equity                    808,001
                                     ----------------------
  Total shareholders' equity and
   liabilities                       $7,134,963     42,487
                                     ===========-----------

Net interest income, on a tax-
 equivalent basis (1)                               66,334

Net interest margin (5)                                         4.26%
                                                           ==========

Reconciliation to reported net
 interest income:
------------------------------------

Adjustment for tax equivalent basis                   (500)
                                                -----------

Net interest income, as reported                   $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 loan fees, net of the amortization of
 deferred costs, resulted in an increase of interest income on loans
 by $364,000 and $602,000, for the three months ended September 30,
 2006 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.
*T

-0-
*T
                         GREATER BAY BANCORP
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
                          (Dollars in 000's)

----------------------------------------------------------------------


SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:

                                            Three months ended
                                    ----------------------------------
                                           September 30, 2006
                                    ----------------------------------
                                                            Average
                                      Average               yield /
Tax-Equivalent Basis (1)            balance (2)  Interest     rate
----------------------------------------------------------------------

INTEREST-EARNING ASSETS:
 Fed funds sold                         $33,141       $432      5.18%
 Securities:
  Taxable                             1,509,123     17,537      4.61%
  Tax-exempt (1)                         91,142      1,590      6.92%
  Other short-term (3)                    9,993         83      3.29%
 Loans (4)                            4,785,791     94,781      7.86%
                                    -----------------------
   Total interest-earning assets      6,429,190    114,423      7.06%
Noninterest-earning assets              911,348          -
                                    -----------------------
        Total assets                 $7,340,538    114,423
                                    ============-----------
INTEREST-BEARING LIABILITIES:
 Deposits:
  MMDA, NOW and Savings              $2,719,915     17,036      2.48%
  Time deposits over $100,000           787,289      9,506      4.79%
  Other time deposits                   595,200      6,973      4.65%
                                    -----------------------
    Total interest-bearing deposits   4,102,404     33,515      3.24%
Short-term borrowings                   299,675      3,674      4.86%
CODES                                         -          -      0.00%
Subordinated debt                       251,677      5,355      8.44%
Other long-term borrowings              579,694      7,598      5.20%
                                    -----------------------
     Total interest-bearing
      liabilities                     5,233,450     50,142      3.80%
Noninterest-bearing deposits            993,457
Other noninterest-bearing
 liabilities                            274,367
Minority Interest: Preferred stock
 of real estate investment trust
 subsidiaries                            12,796
Shareholders' equity                    826,468
                                    -----------------------
  Total shareholders' equity and
   liabilities                       $7,340,538     50,142
                                    ============-----------

Net interest income, on a tax-
 equivalent basis (1)                               64,281

Net interest margin (5)                                         3.97%
                                                           ===========

Reconciliation to reported net
 interest income:
------------------------------------

Adjustment for tax equivalent basis                   (507)
                                                -----------

Net interest income, as reported                   $63,774
                                                ===========






                                           Three months ended
                                    ---------------------------------
                                            September 30, 2005
                                    ---------------------------------
                                                            Average
                                       Average              yield /
Tax-Equivalent Basis (1)             balance (2) Interest     rate
------------------------------------ --------------------------------

INTEREST-EARNING ASSETS:
 Fed funds sold                         $45,033       $384      3.38%
 Securities:
  Taxable                             1,446,353     15,117      4.15%
  Tax-exempt (1)                         82,724      1,514      7.27%
  Other short-term (3)                   11,923         59      1.96%
 Loans (4)                            4,699,570     84,135      7.10%
                                     ----------------------
   Total interest-earning assets      6,285,603    101,209      6.39%
Noninterest-earning assets              902,363          -
                                     ----------------------
        Total assets                 $7,187,966    101,209
                                     ===========-----------
INTEREST-BEARING LIABILITIES:
 Deposits:
  MMDA, NOW and Savings              $3,004,193     13,042      1.72%
  Time deposits over $100,000           729,040      5,562      3.03%
  Other time deposits                   180,933      1,172      2.57%
                                     ----------------------
    Total interest-bearing deposits   3,914,166     19,776      2.00%
Short-term borrowings                   350,989      3,290      3.72%
CODES                                    93,304        131      0.56%
Subordinated debt                       210,311      4,446      8.39%
Other long-term borrowings              417,583      5,071      4.82%
                                     ----------------------
     Total interest-bearing
      liabilities                     4,986,353     32,714      2.60%
Noninterest-bearing deposits          1,132,668
Other noninterest-bearing
 liabilities                            282,409
Minority Interest: Preferred stock
 of real estate investment trust
 subsidiaries                            12,634
Shareholders' equity                    773,902
                                     ----------------------
  Total shareholders' equity and
   liabilities                       $7,187,966     32,714
                                     ===========-----------

Net interest income, on a tax-
 equivalent basis (1)                               68,495

Net interest margin (5)                                         4.32%
                                                           ==========

Reconciliation to reported net
 interest income:
------------------------------------

Adjustment for tax equivalent basis                   (499)
                                                -----------

Net interest income, as reported                   $67,996
                                                ===========



(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 loan fees, net of the amortization of
 deferred costs, resulted in an increase of interest income on loans
 by $364,000 and $841,000 for the three months ended September 30,
 2006 and September 30, 2005, 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.
*T

-0-
*T
                         GREATER BAY BANCORP
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
                          (Dollars in 000's)

----------------------------------------------------------------------



SELECTED AVERAGE BALANCE SHEET AND YIELD DATA:

                                               Year to date
                                    ----------------------------------
                                           September 30, 2006
                                    ----------------------------------
                                                            Average
                                      Average               yield /
Tax-Equivalent Basis (1)            balance (2)  Interest     rate
----------------------------------------------------------------------

INTEREST-EARNING ASSETS:
 Fed funds sold                         $18,813       $692      4.92%
 Securities:
  Taxable                             1,456,380     49,191      4.52%
  Tax-exempt (1)                         86,718      4,625      7.13%
  Other short-term (3)                    9,701        164      2.26%
 Loans (4)                            4,727,539    272,813      7.72%
                                    -----------------------
   Total interest-earning assets      6,299,151    327,485      6.95%
Noninterest-earning assets              903,335          -
                                    -----------------------
        Total assets                 $7,202,486    327,485
                                    ============-----------
INTEREST-BEARING LIABILITIES:
 Deposits:
  MMDA, NOW and Savings              $2,824,987     46,202      2.19%
  Time deposits over $100,000           774,767     25,294      4.36%
  Other time deposits                   424,817     13,722      4.32%
                                    -----------------------
    Total interest-bearing deposits   4,024,571     85,218      2.83%
Short-term borrowings                   283,572      9,604      4.53%
CODES                                    24,758        101      0.55%
Subordinated debt                       229,066     14,779      8.63%
Other long-term borrowings              534,221     20,061      5.02%
                                    -----------------------
     Total interest-bearing
      liabilities                     5,096,188    129,763      3.40%
Noninterest-bearing deposits          1,016,102
Other noninterest-bearing
 liabilities                            271,014
Minority Interest: Preferred stock
 of real estate investment trust
 subsidiaries                            12,756
Shareholders' equity                    806,426
                                    -----------------------
  Total shareholders' equity and
   liabilities                       $7,202,486    129,763
                                    ============-----------

Net interest income, on a tax-
 equivalent basis (1)                              197,722

Net interest margin (5)                                         4.20%
                                                           ===========

Reconciliation to reported net
 interest income:
------------------------------------

Adjustment for tax equivalent basis                 (1,494)
                                                -----------

Net interest income, as reported                  $196,228
                                                ===========







                                              Year to date
                                    ---------------------------------
                                            September 30, 2005
                                    ---------------------------------
                                                            Average
                                       Average              yield /
Tax-Equivalent Basis (1)             balance (2)  Interest    rate
---------------------------------------------------------------------

INTEREST-EARNING ASSETS:
 Fed funds sold                         $38,412       $789      2.75%
 Securities:
  Taxable                             1,480,290     47,196      4.26%
  Tax-exempt (1)                         84,012      4,472      7.12%
  Other short-term (3)                    8,117         95      1.56%
 Loans (4)                            4,581,382    237,486      6.93%
                                     ----------------------
   Total interest-earning assets      6,192,213    290,038      6.26%
Noninterest-earning assets              886,871          -
                                     ----------------------
        Total assets                 $7,079,084    290,038
                                     ===========-----------
INTEREST-BEARING LIABILITIES:
 Deposits:
  MMDA, NOW and Savings              $3,130,250     39,596      1.69%
  Time deposits over $100,000           662,113     13,175      2.66%
  Other time deposits                   151,668      2,625      2.31%
                                     ----------------------
    Total interest-bearing deposits   3,944,031     55,396      1.88%
Short-term borrowings                   339,960      8,870      3.49%
CODES                                   154,463        631      0.55%
Subordinated debt                       210,311     13,135      8.24%
Other long-term borrowings              291,833     11,063      5.00%
                                     ----------------------
     Total interest-bearing
      liabilities                     4,940,598     89,095      2.41%
Noninterest-bearing deposits          1,089,518
Other noninterest-bearing
 liabilities                            264,535
Minority Interest: Preferred stock
 of real estate investment trust
 subsidiaries                            12,599
Shareholders' equity                    771,834
                                     ----------------------
  Total shareholders' equity and
   liabilities                       $7,079,084     89,095
                                     ===========-----------

Net interest income, on a tax-
 equivalent basis (1)                              200,943

Net interest margin (5)                                         4.34%
                                                           ==========

Reconciliation to reported net
 interest income:
------------------------------------

Adjustment for tax equivalent basis                 (1,480)
                                                -----------

Net interest income, as reported                  $199,463
                                                ===========



(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 loan fees, net of the amortization of
 deferred costs, resulted in an increase of interest income on loans
 by $1,211,000 and $838,000 for the nine months ended September 30,
 2006 and September 30, 2005, 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.
*T

-0-
*T
                         GREATER BAY BANCORP
          September 30, 2006 - FINANCIAL SUMMARY (UNAUDITED)
         (Dollars and shares in 000's, except per share data)


----------------------------------------------------------------------
SELECTED CONSOLIDATED CREDIT QUALITY DATA:

                 Sep 30     Jun 30     Mar 31     Dec 31     Sep 30
                  2006       2006       2006       2005       2005
----------------------------------------------------------------------

Nonperforming
 assets (1)
 Commercial:
  Matsco/GBC       $8,323     $7,257     $8,011     $8,883     $9,299
  SBA               2,881      4,536      3,627      6,497      7,612
  Other             6,458      4,775      9,184      9,142      7,578
               -------------------------------------------------------
 Total
  commercial       17,662     16,568     20,822     24,522     24,489
 Real estate:
  Commercial       10,939     14,763      8,203      8,434      9,844
  Construction
   and land           323        323      3,242        323          -
  Other                 -          3          7     33,312     33,777
               -------------------------------------------------------
 Total real
  estate           11,262     15,089     11,452     42,069     43,621
 Consumer and
  other               139        611        718      4,503      3,821
               -------------------------------------------------------
  Total
   nonaccrual
   loans           29,063     32,268     32,992     71,094     71,931
 OREO                   -          -          -          -          -
 Other
  nonperforming
  assets              603        361        438        631      1,153
               -------------------------------------------------------
  Total non-
  performing
   assets (1)     $29,666    $32,629    $33,430    $71,725    $73,084
               =======================================================

Net loan
 charge-offs
 (recoveries)
 (2)                 $223     $2,662        $43     $1,207     $3,098

Ratio of
 allowance for
 loan and lease
 losses to:
 End of period
  loans              1.48%      1.50%      1.58%      1.74%      1.98%
 Total
  nonaccrual
  loans            245.41%    222.17%    226.02%    115.56%    129.09%

Ratio of
 (recovery of )
 / provision
 for credit
 losses to
 average loans,
 annualized         -0.04%     -0.16%     -0.52%     -0.89%     -0.28%

Total
 nonaccrual
 loans to total
 loans               0.60%      0.68%      0.70%      1.50%      1.53%
Total
 nonperforming
 assets to
 total assets        0.40%      0.44%      0.47%      1.01%      1.03%

Ratio of
 quarterly net
 loan charge-
 offs to
 average loans,
 annualized          0.02%      0.23%      0.00%      0.10%      0.26%
Ratio of YTD
 net loan
 charge-offs to
 YTD average
 loans               0.08%      0.12%      0.00%      0.24%      0.29%

---------------

(1) Nonperforming assets include nonaccrual loans, other real estate
 owned and other nonperforming assets.

(2) Net loan charge-offs are loan charge-offs net of recoveries.


----------------------------------------------------------------------


----------------------------------------------------------------------
SELECTED QUARTERLY CAPITAL RATIOS AND DATA:

                 Sep 30     Jun 30     Mar 31     Dec 31     Sep 30
                  2006       2006       2006       2005       2005
----------------------------------------------------------------------

Tier 1 leverage
 ratio              10.63%     12.07%     10.77%     10.41%     10.23%
Tier 1 risk-
 based capital
 ratio              12.15%     13.49%     12.48%     12.01%     12.25%
Total risk-
 based capital
 ratio              13.40%     14.93%     13.73%     13.26%     13.51%
Total equity to
 assets ratio       11.41%     11.05%     11.16%     10.90%     10.88%
Common equity
 to assets
 ratio              10.01%      9.66%      9.71%      9.45%      9.43%

Tier I capital   $748,071   $824,154   $734,692   $708,563   $702,030
Total risk-
 based capital   $825,036   $911,802   $808,436   $782,525   $774,044
Risk weighted
 assets        $6,155,489 $6,108,101 $5,889,032 $5,900,425 $5,730,710

NON-GAAP RATIOS (1):

 Tangible
  common equity
  to tangible
  assets - end
  of period (2)      6.34%      5.96%      5.86%      5.56%      5.58%
 Tangible
  common book
  value per
  common share
  - end of
  period (3)        $8.75      $8.29      $7.95      $7.61      $7.51

 Common book
  value per
  common share
  - end of
  period (4)       $14.38     $13.98     $13.73     $13.48     $13.22
 Total common
  shares
  outstanding -
  end of period    51,047     50,917     50,288     49,906     50,425

---------------

(1) The following table provides a reconciliation of common equity to
 tangible common equity and total assets to tangible assets:

 Common
  shareholders'
  equity         $733,816   $711,617   $690,484   $672,624   $666,701
 Less: goodwill
  and other
  Intangible
  assets         (287,202)  (289,570)  (290,733)  (293,030)  (288,250)
               -------------------------------------------------------
  Tangible
   common
   equity        $446,614   $422,047   $399,751   $379,594   $378,451
               =======================================================

 Total assets  $7,333,355 $7,369,654 $7,108,506 $7,120,969 $7,073,308
 Less: goodwill
  and other
  intangible
  assets         (287,202)  (289,570)  (290,733)  (293,030)  (288,250)
               -------------------------------------------------------
  Tangible
   assets      $7,046,153 $7,080,084 $6,817,773 $6,827,939 $6,785,058
               =======================================================

(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 - end of
 period

(4) Computed as common shareholders' equity divided by common shares
 outstanding - end of period.
*T