Bay View (NYSE:BVC)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Bay View Charts. Click Here for more Bay View Charts.](/p.php?pid=staticchart&s=NY%5EBVC&p=8&t=15)
Bay View Capital Corporation Announces Fourth Quarter Results
SAN MATEO, Calif., Jan. 25 /PRNewswire-FirstCall/ -- Bay View Capital
Corporation (NYSE:BVC) (the "Company") today reported a fourth quarter 2004 net
loss of $1.1 million, or $0.17 per diluted share, compared to a third quarter
2004 net loss of $1.4 million, or $0.22 per diluted share, and a fourth quarter
of 2003 net loss of $673 thousand, or $0.10 per diluted share. The per share
data reflects the 1-for-10 reverse split effective June 30, 2004.
Results of Operations
Net interest income totaled $3.9 million for the fourth quarter of 2004
compared to $3.8 million for the third quarter of 2004. The increase in net
interest income was primarily due to an increase in interest income generated
by continued growth of BVAC's portfolio of auto contracts, which was partially
offset by an increase in the cost of funds on BVAC's warehouse credit facility
resulting from rising market interest rates.
Noninterest income was $2.9 million for the fourth quarter of 2004 compared to
$1.5 million for the third quarter of 2004. The increase in noninterest income
was primarily the result of unrealized gains on interest rate swaps held by
BVAC, partially offset by decreased leasing income associated with the
declining balance of the Company's liquidating auto lease portfolio.
Noninterest income for the fourth quarter of 2004 included $1.0 million of
unrealized gains on interest rate swaps, while the third quarter of 2004
included $1.4 million of unrealized losses. This volatility was primarily due
to fluctuations in intermediate-term interest rates during this period. During
2004, BVAC had $2.1 million of unrealized gains on interest rate swaps,
reflecting the increase in intermediate term rates that occurred since the
beginning of the year.
Total noninterest expense was $7.8 million for the fourth quarter of 2004
compared to $7.3 million for the third quarter of 2004. The increase in
noninterest expense was primarily due to $0.8 million of writedowns in the
Company's real estate owned portfolio and a $0.5 million increase in general
and administrative expenses resulting primarily from consulting fees incurred
in connection with the Company's implementation of the Sarbanes-Oxley Act of
2002. These increases were partially offset by a $0.8 million decrease in
leasing expense.
Financial Condition
The Company's total assets were $423.8 million at December 31, 2004, compared
to $364.1 million at December 31, 2003. The growth in total assets was
primarily due to $162.0 million of net growth in auto loan contracts, partially
offset by $56.6 million of payoffs on the Company's auto leasing business.
At December 31, 2004, the Company had tax assets of approximately $16.7
million, consisting of net tax assets of $38.2 million less a valuation
allowance of $21.5 million.
On December 31, 2004, the Company distributed $14.8 million in cash, or $2.25
per share, to the holders of its common stock.
BVAC
BVAC acquires auto installment contracts from a network of approximately 7,000
manufacturer-franchised and independent auto dealers in 33 states. BVAC has
positioned itself in the market as a lender for well-qualified borrowers. While
BVAC competes with other lenders for good credit quality auto loans, it offers
specialized products such as extended term financing and larger advances for
high credit quality customers and uses these products to establish
relationships with automobile dealers.
BVAC's net interest income for the fourth quarter of 2004 improved to $3.8
million from $3.6 million in the third quarter of 2004, primarily due to
continued growth in its inventory of auto contracts. During the fourth quarter
of 2004, BVAC purchased $80.7 million of auto contracts, an increase of 16.1%
compared to purchases of $69.5 million in the third quarter of 2004 and an
increase of 19.7% from purchases of $67.4 million in the fourth quarter of
2003. BVAC attributes this increase to the initial success of its efforts to
broaden its market for good credit quality customers and its focus on expanding
its origination of high quality loans. BVAC has consistently improved its
monthly loan originations since September 2004, and its December 2004 loan
originations were the highest achieved during any month in 2004.
For the fourth quarter of 2004, BVAC's purchased contract rates averaged 8.09%
compared to third quarter rates that averaged 8.06%. Credit quality indicators
also improved in the fourth quarter of 2004. FICO scores for the quarter
averaged 746 compared to an average of 742 for third quarter 2004 production.
Net chargeoffs were at 1.11% of managed contracts in the fourth quarter of 2004
compared to 1.01% for the third quarter of 2004.
During 2004, BVAC sold $24.8 million of auto contracts on a "whole loan" basis
with servicing retained. At December 31, 2004, BVAC was servicing 28,283 auto
contracts with an aggregate outstanding balance of $571 million compared to
28,146 auto contracts with an aggregate outstanding balance of $557 million at
September 30, 2004.
Liquidation Activities
The Company continues to dispose of the assets and satisfy the liabilities it
assumed from Bay View Bank, N.A., whose dissolution was effective on September
30, 2003. Since December 31, 2003, $98.2 million of these assets have been
liquidated and $45.4 million of liabilities have been discharged. At December
31, 2004, remaining assets to be liquidated totaled approximately $61.5 million
compared to $159.7 million at December 31, 2003. Remaining liabilities to be
satisfied totaled $19.7 million at December 31, 2004 compared to $65.0 million
at December 31, 2003.
Nonperforming assets, net of mark-to-market valuation allowances, were $4.7
million at December 31, 2004. Total loans that were delinquent 60 days or more
were $0.9 million at December 31, 2004.
Other
During the fourth quarter of 2003, the Company's Board of Directors amended the
Plan of Dissolution and Stockholder Liquidity (the "Plan"), which the Company
adopted in October 2002, to become a plan of partial liquidation. As a result,
the Company discontinued its use of the liquidation basis of accounting, which
it used from September 30, 2002 through September 30, 2003, and re-adopted the
going concern basis of accounting effective October 1, 2003. Accordingly, the
Company is providing the following financial statements herein:
Financial Condition: Consolidated Statements of Financial Condition as of
December 31, 2004 and December 31, 2003.
Results of Operations / Change in Net Assets: Consolidated Statements of
Operations and Comprehensive Loss for the three-month periods ended
December 31, 2004, September 30, 2004 and December 31, 2003 as well as
for the year ended December 31, 2004 and a Consolidated Statement of
Changes in Net Assets in Liquidation (Liquidation Basis) for the
nine-month period ended September 30, 2003.
The Company will host a conference call at 2:00 p.m. PST on January 26, 2005 to
discuss its financial results. Analysts, media representatives and the public
are invited to listen to this discussion by calling 1-888-793-6954 and
referencing the password "BVC." An audio replay of this conference call will
be available through Friday, February 25, 2005 and can be accessed by dialing
1-888-568-0871.
Bay View Capital Corporation is a financial services company headquartered in
San Mateo, California. Its common stock is listed on the NYSE: BVC. For more
information, visit the Company's website at http://www.bayviewcapital.com/.
Forward-Looking Statements
All statements contained in this release that are not historic facts are based
on current expectations. Such statements are forward-looking statements (as
defined in the Private Securities Litigation Reform Act of 1995) in nature and
involve a number of risks and uncertainties. Although the Company currently
believes that the assumptions underlying the forward-looking statements are
reasonable, any of the assumptions could prove inaccurate and, therefore, there
can be no assurance that the results contemplated by the forward-looking
statements will be realized. For information regarding factors that could
cause the results contemplated by the forward-looking statements to differ from
expectations, such as the inability to achieve the financial goals of both the
Company's plan of partial liquidation, including any financial goals related to
contemplated asset resolution and the Company's plan for the continuing
operation of the auto business, including the inability to use net operating
loss carryforwards that the Company currently has, please refer to the
Company's Reports on Forms 10-K and 10-Q filed with the Securities and Exchange
Commission. In light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such statements
should not be regarded as a representation by the Company or any other person.
The Company disclaims any obligation to update such forward-looking statements
or to announce publicly the results of any revisions to any of the
forward-looking statements included herein to reflect future events or
developments.
Bay View Capital Corporation
Consolidated Statements of Financial Condition
December 31, December 31,
2004 2003
(Unaudited)
(Dollars in thousands)
ASSETS
Cash and cash equivalents:
Cash and due from depository institutions $4,436 $11,434
Short-term investments 11 129
4,447 11,563
Restricted cash 26,845 32,240
Securities available-for-sale:
Retained interests in securitizations 22,636 28,590
Mortgage-backed and other securities -- 6,139
Loans held-for-sale:
Installment contracts 75,021 165,874
Other loans 902 12,074
Installment contracts held-for-investment, net 252,863 --
Investment in operating lease assets, net 10,041 66,657
Real estate owned, net 3,379 4,955
Premises and equipment, net 733 371
Repossessed vehicles 439 438
Income taxes, net 16,699 21,031
Goodwill 1,846 1,846
Other assets 7,907 12,340
Total assets $423,758 $364,118
LIABILITIES AND STOCKHOLDERS' EQUITY
Borrowings:
Warehouse credit facility $298,755 $138,221
Other borrowings 1,895 16,055
Junior Subordinated Deferrable Interest Debentures -- 24,784
Other liabilities 9,629 17,500
Liquidation reserve 8,856 11,626
Total liabilities 319,135 208,186
Stockholders' equity:
Common stock ($.01 par value); authorized,
80,000,000 shares; issued,
2004 - 6,597,303 shares;
2003 - 6,579,333 shares;
outstanding, 2004 - 6,593,860 shares;
2003 - 6,575,890 shares 66 658
Additional paid-in capital 109,579 156,588
Accumulated deficit (4,156) (673)
Treasury stock, at cost; 2004 - 3,443 shares;
2003 - 3,443 shares (587) (587)
Accumulated other comprehensive loss (279) (54)
Total stockholders' equity 104,623 155,932
Total liabilities and stockholders' equity $423,758 $364,118
Bay View Capital Corporation
Consolidated Statements of Operations and Comprehensive Loss
For the Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
2004 2004 2003
(Unaudited)(Unaudited)
(In thousands, except per share amounts)
Interest income:
Interest on loans and leases $5,820 $5,217 $3,757
Interest on mortgage-backed securities -- -- 166
Interest and dividends
on investment securities 705 743 1,013
6,525 5,960 4,936
Interest expense:
Interest on borrowings 2,593 2,147 3,612
2,593 2,147 3,612
Net interest income 3,932 3,813 1,324
Provision for losses on
installment contracts 760 331 --
Net interest income after provision
for losses on installment contracts 3,172 3,482 1,324
Noninterest income:
Leasing income 1,607 2,510 6,907
Loan servicing income 624 720 1,132
Unrealized gains (losses) on
interest rate swap agreements 976 (1,433) (176)
Unrealized losses on installment
contracts and other loans (289) (249) --
Loan fees and charges 154 239 213
Gains (losses) on sale of assets
and liabilities, net (293) (367) 657
Other, net 83 68 1,602
2,862 1,488 10,335
Noninterest expense:
General and administrative 6,515 6,009 5,747
Leasing expense 458 1,190 5,938
Real estate owned operations, net 866 109 831
7,839 7,308 12,516
Loss before income tax benefit (1,805) (2,338) (857)
Income tax benefit (708) (917) (184)
Net loss $(1,097) $(1,421) $(673)
Basic loss per share $(0.17) $(0.22) $(0.10)
Diluted loss per share $(0.17) $(0.22) $(0.10)
Weighted-average
basic shares outstanding 6,591 6,588 6,419
Weighted-average
diluted shares outstanding 6,591 6,588 6,419
Net loss $(1,097) $(1,421) $(673)
Other comprehensive loss, net of tax:
Change in unrealized loss on
securities available-for-sale,
net of tax benefit of $254, $254 and
$35 for the three months ended
December 31, 2004, September 30, 2004
and December 31, 2003, respectively (397) (398) (54)
Other comprehensive loss (397) (398) (54)
Comprehensive loss $(1,494) $(1,819) $(727)
Bay View Capital Corporation
Consolidated Statement of Operations and Comprehensive Loss
(Unaudited)
For the Year Ended
December 31, 2004
(In thousands, except
per share amounts)
Interest income:
Interest on loans and leases $19,700
Interest on mortgage-backed securities 31
Interest and dividends on investment securities 2,878
22,609
Interest expense:
Interest on borrowings 8,845
8,845
Net interest income 13,764
Provision for losses on installment contracts 1,612
Net interest income after provision
for losses on installment contracts 12,152
Noninterest income:
Leasing income 12,941
Loan servicing income 3,143
Unrealized gains on interest rate swap agreements 2,140
Unrealized losses on installment contracts and other loans (1,643)
Loan fees and charges 1,117
Loss on sale of assets and liabilities, net (1,630)
Other, net 1,679
17,747
Noninterest expense:
General and administrative 25,211
Leasing expense 9,163
Real estate owned operations, net 1,255
35,629
Loss before income tax benefit (5,730)
Income tax benefit (2,248)
Net loss $(3,482)
Basic loss per share $(0.53)
Diluted loss per share $(0.53)
Weighted-average basic shares outstanding 6,585
Weighted-average diluted shares outstanding 6,585
Net loss $(3,482)
Other comprehensive loss, net of tax:
Change in unrealized loss on securities
available-for-sale, net of tax benefit of
$144 for the year ended December 31, 2004 (225)
Other comprehensive loss (225)
Comprehensive loss $(3,707)
Bay View Capital Corporation
Consolidated Statement of Changes in Net Assets in Liquidation
(Liquidation Basis)
(Unaudited)
For the Nine Months Ended
September 30, 2003
(Dollars in thousands)
Net assets in liquidation at beginning of period $410,064
Pre-tax loss from operations (4,595)
Changes in estimated values of assets and liabilities (5,995)
Income tax benefit 6,252
Net loss from operations (4,338)
Other changes in net assets in liquidation (A) 4,088
Net assets in liquidation at end of period $409,814
(A) Primarily represents proceeds from stock options and warrants
exercised.
BAY VIEW CAPITAL CORPORATION
SELECTED FINANCIAL DATA
For the For the
Year Nine
For the Three Months Ended Ended Months Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Sept. 30,
2004 2004 2003 2004 2003
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Going
Concern Liquidation
Going Concern Basis Basis Basis
(Dollars in thousands)
Selected Results of Operations/Changes in Net Assets in Liquidation
Information:
Net interest
income (A) $3,932 $3,813 $1,324 $13,764 $9,540
Provision for losses
on installment
contracts (760) (331) -- (1,612) --
Leasing income 1,607 2,510 6,907 12,941 32,578
Loan servicing income 624 720 1,132 3,143 3,689
Unrealized gains
(losses) on interest
rate swap agreements 976 (1,433) (176) 2,140 (1,448)
Unrealized losses
on installment
contracts and
other loans (289) (249) -- (1,643) --
Loan fees and charges 154 239 213 1,117 1,007
Gain (loss) on
sale of assets and
liabilities, net (293) (367) 657 (1,630) 787
Other income, net 83 68 1,602 1,679 474
General and
administrative
expense (6,515) (6,009) (5,747) (25,211) (26,338)
Leasing expense (458) (1,190) (5,938) (9,163) (24,421)
Other expense (866) (109) (831) (1,255) (463)
Pre-tax loss
from operations (1,805) (2,338) (857) (5,730) (4,595)
Changes in
estimated
liquidation values
of assets
and liabilities -- -- -- -- (5,995)
Income tax benefit 708 917 184 2,248 6,252
Other changes
in net assets
in liquidation -- -- -- -- 4,088
Change in net assets
in liquidation -- -- -- -- $(250)
Net loss $(1,097) $(1,421) $(673) $(3,482)
At At At
Dec. 31, Sept. 30, Dec. 31,
2004 2004 2003
(Unaudited) (Unaudited)
Going Concern Basis
(Dollars in thousands, except per share amounts)
Installment Contracts and Loans Receivable:
Auto installment contracts (B)
Installment contracts held-for-sale $75,021 $129,371 $165,874
Installment contracts
held-for-investment 252,863 147,703 --
Total auto installment contracts 327,884 277,074 165,874
Other loans and leases:
Franchise loans 583 593 6,428
Asset-based loans, syndicated loans,
factored receivables
and commercial leases 319 332 844
Business loans -- -- 4,802
Total other loans and leases 902 925 12,074
Installment contracts
and loans receivable (C) $328,786 $277,999 $177,948
Credit Quality (Liquidating Portfolio):
Nonperforming assets - total (D) $4,282 $5,104 $6,795
Nonperforming assets - franchise $3,792 $4,602 $5,757
Loans and leases delinquent
60 days or more $902 $925 $563
Loans and leases delinquent
60 days or more - franchise $583 $593 $--
Per Share Data:
Book value per share (E) $15.87 $18.35 23.71
Other Data:
Full-time equivalent employees,
including BVAC 125 128 143
(A) Effective July 1, 2003, the Company adopted Statement of Financial
Accounting Standards No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity" and,
accordingly, dividend expense on the Capital Securities has been
reflected in interest on borrowings.
(B) Excludes auto-related operating lease assets reported separately from
loans and leases totaling $10.0 million, $16.5 million, and
$66.7 million at December 31, 2004, September 30, 2004 and
December 31, 2003, respectively.
(C) Includes allowances for mark-to-market valuation reserves and credit
losses of $2.7 million, $2.0 million and $3.2 million at
December 31, 2004, September 30, 2004 and December 31, 2003,
respectively.
(D) Nonperforming assets include mark-to-market valuation reserves of
$1.2 million, $1.2 million and $1.4 million at December 31, 2004,
September 30, 2004 and December 31, 2003, respectively.
(E) Book value per share is presented on a post-reverse stock split basis.
BAY VIEW ACCEPTANCE CORPORATION
At At At
Dec. 31, Sept. 30, Dec. 31,
2004 2004 2003
(Unaudited) (Unaudited)
Going Concern Basis
(Dollars in thousands)
Selected Balance Sheet Information:
Cash and cash equivalents $3,278 $5,226 $2,841
Restricted cash 7,540 9,768 5,130
Retained interest in
auto loan securitization 22,636 24,680 29,789
Installment contracts held-for-sale 75,021 129,371 165,874
Installment contracts
held-for-investment, net 252,863 147,703 --
Advances to parent 3,010 -- --
Other assets 8,677 8,215 6,861
Total assets $373,025 $324,963 $210,495
Advances from parent $-- $4,220 $802
Warehouse line 298,755 246,006 138,221
Other liabilities 11,502 12,247 10,236
Total liabilities 310,257 262,473 149,259
Stockholder's equity 62,768 62,490 61,236
Total liabilities
and stockholder's equity $373,025 $324,963 $210,495
BAY VIEW ACCEPTANCE CORPORATION (Continued)
For the For the
Year Year
For the Three Months Ended Ended Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2004 2004 2003 2004 2003
(Unaudited) (Unaudited) (Unaudited)
Going Concern Basis
(Dollars in thousands)
Selected Results of Operations Information:
Interest on
auto contracts $5,821 $5,170 $4,713 $19,298 $13,351
Interest on
investment securities 620 638 540 2,576 2,859
Interest expense
on borrowings (2,647) (2,177) (1,269) (7,831) (4,193)
Net interest income 3,794 3,631 3,984 14,043 12,017
Provision for
losses on
installment contracts (760) (331) -- (1,612) --
Loan servicing income 621 712 1,056 3,093 3,884
Unrealized gains
(losses) on interest
rate swap agreements 976 (1,433) (176) 2,137 (1,624)
Unrealized gains
(losses) on
installment contracts
held-for-sale (289) 181 (702) (1,213) 380
Loan fees and charges 124 204 215 734 888
Gain (loss) on
sale of assets, net (452) (863) 595 (1,770) 232
Other income, net 49 50 370 176 1,430
General
and administrative
expense (2,950) (2,668) (3,694) (11,274) (13,244)
Income (loss) before
income taxes 1,113 (517) 1,648 4,314 3,963
Income tax
benefit (expense) (438) 166 (676) (1,797) (1,643)
Net income (loss) $675 $(351) $972 $2,517 $2,320
Selected Production Information:
Dollar value
of contracts
purchased $80,689 $69,474 $67,413 $295,348 $279,521
Number of
contracts
purchased 2,889 2,364 2,292 10,043 9,762
Average balance
of contracts
purchased $27.9 $29.4 $29.4 $29.4 $28.6
Weighted-average
contract rate 8.09% 8.06% 8.03% 7.98% 8.35%
Average FICO
credit score 746 742 735 739 732
Selected Credit Quality Information:
Net chargeoffs on
managed contracts
for period $1,566 $1,409 $1,882 $6,404 $6,994
Net chargeoffs
as a percentage
of average
managed contracts
(annualized) 1.11% 1.01% 1.32% 1.14% 1.17%
Contracts
delinquent 30 days
or more as a
percentage of
managed contracts
(as of period-end) 0.63% 0.30% 0.49% 0.63% 0.49%
Average Managed
Contracts $564,667 $557,744 $569,057 $562,155 $593,207
At At At
Dec. 31, Sept. 30, Dec. 31,
2004 2004 2003
(Unaudited) (Unaudited)
(Dollars in thousands)
Managed Assets:
Total managed contracts $570,864 $556,802 $567,293
Total number of contracts 28,283 28,146 31,035
Other Data:
Full-time equivalent employees 104 106 102
DATASOURCE: Bay View Capital Corporation
CONTACT: John Okubo of Bay View Capital Corporation, +1-650-294-7778
Web site: http://www.bayviewcapital.com/