Bay View Capital Corporation Announces First Quarter Results SAN
MATEO, Calif., May 3 /PRNewswire-Firstcall/ -- Bay View Capital
Corporation (the "Company") (NYSE:BVC) today reported a first
quarter 2005 net loss of $334 thousand, or $0.05 per diluted share,
compared to a restated first quarter 2004 net loss of $901
thousand, or $0.14 per diluted share. Per share data reflects a
1-for-10 reverse stock split that was effective June 30, 2004.
Results of Operations Net interest income increased to $3.4 million
for the first quarter of 2005 from $3.0 million for the same period
a year ago. Interest expense for the first quarter of 2005 reflects
the benefit of a $0.6 million savings in connection with redemption
of the remaining $22.0 million of Capital Securities in 2004.
Noninterest income declined to $4.1 million for the first quarter
of 2005 from $7.0 million for the first quarter of 2004, largely on
a $3.2 million decline in leasing income resulting from continued
runoff of the Company's liquidating auto lease portfolio offset, in
part, by favorable experience on the disposition of vehicles coming
off lease. Noninterest expense declined to $7.1 million for the
first quarter of 2005 from $11.5 million for the first quarter of
2004 on a $4.2 million decline in leasing expense. Financial
Condition Total assets increased to $502.9 million at March 31,
2005 from $423.3 million at December 31, 2004, on $75.2 million of
growth in auto contract receivables. Outstanding borrowings
increased by $80.7 million during the quarter. At March 31, 2005,
the Company had tax assets of $17.1 million, consisting of net tax
assets of $38.6 million less a valuation allowance of $21.5
million. BVAC Bay View Acceptance Corporation ("BVAC"), the
Company's auto finance subsidiary, acquires retail auto installment
contracts from a network of approximately 7,000
manufacturer-franchised and independent auto dealers in 30 states
and 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. For the first quarter of
2005, BVAC produced net income of $788 thousand compared to $596
thousand for the first quarter of 2004. First quarter 2005 net
interest income of $3.3 million was flat when compared with first
quarter 2004 net interest income as increased funding costs, caused
by rising market interest rates, largely offset increased interest
income resulting from growth in its auto contracts receivable.
During the first quarter of 2005, BVAC purchased $115.5 million of
auto contracts, an increase of 43% compared to purchases of $80.7
million in the fourth quarter of 2004 and an increase of 67% from
first quarter 2004 purchases of $69.3 million. BVAC attributes this
increase to the initial success of its efforts to broaden its
market for good credit quality customers and expand its origination
of high quality loans. BVAC has consistently improved its monthly
loan purchase volumes since September 2004, and its March 2005 loan
purchase volume was the highest achieved in the Company's history.
For the first quarter of 2005, BVAC's purchased contract rates
averaged 8.30% compared to first quarter 2004 rates of 7.90%.
Credit quality indicators also improved during the quarter. FICO
scores for the quarter averaged 742 compared to an average of 734
for first quarter 2004 production. Net chargeoffs improved to 1.11%
of managed contracts in the first quarter of 2005 from 1.23% in the
first quarter of 2004. During the quarter, BVAC, through Bay View
2005-LJ-1 Owner Trust, issued $232.1 million of auto receivable
backed notes. The issue was comprised of five classes of notes,
Classes A-1 through A-4, and Class I which is an interest only
security. The notes have a weighted-average stated coupon of 4.19%
and final maturities ranging between February 27, 2006 and May 25,
2012. The notes are insured as to the timely payment of principal
and interest and they contain a call provision that grants the
Company the option of calling the notes at any time after the
aggregate balance of receivables has been reduced to 15% of the
original pool of receivables. Proceeds from the issuance of the
notes were used to repay $217.8 million of borrowings on the
Company's revolving warehouse credit facility. At March 31, 2005,
BVAC was servicing 30,409 auto contracts with an aggregate
outstanding balance of $619 million compared to 29,824 auto
contracts with an aggregate outstanding balance of $560 million at
March 31, 2004. Liquidation Activities The Company continued 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. During the quarter, $5.1 million of these assets,
primarily auto leases and real estate owned, were liquidated and
$4.0 million of liabilities were discharged. Nonperforming
liquidating assets, net of mark-to-market valuation allowances,
were $3.0 million at March 31, 2005. Total liquidating loans that
were delinquent 60 days or more were $0.4 million at March 31,
2005. Other As previously reported, the Company is restating its
consolidated financial statements for the first, second and third
quarters of 2004 to correct its accounting for derivatives
(interest rate cap contracts) maintained by an affiliated special
purpose owners trust entity in connection with BVAC's $350 million
revolving receivables warehouse credit facility. The impact of the
restatement to first quarter 2004 results is to increase net loss
by $58 thousand and decrease total assets by the same amount. The
Company will host a conference call at 2:00 p.m. PDT on May 6, 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 Sunday, June 5,
2005 and can be accessed by dialing 1-866-360-3305. 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 March
31, 2005 December 31, (Unaudited) 2004 (Dollars in thousands)
ASSETS Cash and cash equivalents $8,079 $4,447 Restricted cash
33,112 26,845 Retained interests in securitizations 21,880 22,636
Auto installment contracts and loans held-for-sale: Auto
installment contracts 109,617 75,021 Other loans 375 902 Auto
installment contracts held-for-investment, net 293,470 252,863
Investment in operating lease assets, net 5,941 10,041 Real estate
owned, net 2,654 3,379 Premises and equipment, net 710 733
Repossessed vehicles 250 439 Deferred and current income taxes, net
17,098 16,977 Goodwill 1,846 1,846 Other assets 7,870 7,199 Total
assets $502,902 $423,328 LIABILITIES AND STOCKHOLDERS' EQUITY
Borrowings: Warehouse credit facility $160,304 $298,755
Securitization notes payable 220,475 -- Other borrowings 607 1,895
Other liabilities 8,771 9,629 Liquidation reserve 8,768 8,856 Total
liabilities 398,925 319,135 Stockholders' equity: Common stock
($.01 par value); authorized, 80,000,000 shares; issued, 2005 -
6,597,303 shares; 2004 - 6,597,303 shares; outstanding, 2005 -
6,595,886 shares; 2004 - 6,593,860 shares 66 66 Additional paid-in
capital 109,243 109,578 Accumulated deficit (4,919) (4,585)
Treasury stock, at cost; 2005 - 1,417 shares; 2004 - 3,443 shares
(252) (587) Accumulated other comprehensive loss (161) (279) Total
stockholders' equity 103,977 104,193 Total liabilities and
stockholders' equity $502,902 $423,328 Bay View Capital Corporation
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited) For the Three Months Ended March 31, December 31, March
31, 2005 2004 2004 As Restated (In thousands, except per share
amounts) Interest income: Interest on installment contracts and
loans $6,350 $5,820 $4,155 Interest on mortgage-backed securities
-- -- 29 Interest and dividends on investment securities 721 705
728 7,071 6,525 4,912 Interest expense: Interest on borrowings
3,678 2,593 1,942 3,678 2,593 1,942 Net interest income 3,393 3,932
2,970 Provision for losses on installment contracts 837 760 -- Net
interest income after provision for losses on installment contracts
2,556 3,172 2,970 Noninterest income: Leasing income 2,070 1,607
5,228 Loan servicing income 552 624 947 Unrealized gain (loss) on
derivative instruments 1,480 779 (308) Unrealized loss on
installment contracts and other loans (10) (32) (5) Loan fees and
charges 183 154 500 Loss on sale of assets and liabilities, net
(439) (550) (300) Other, net 242 83 984 4,078 2,665 7,046
Noninterest expense: General and administrative 6,606 6,515 6,541
Leasing expense 515 458 4,667 Real estate owned operations, net 4
866 291 7,125 7,839 11,499 Loss before income taxes (491) (2,002)
(1,483) Income tax benefit (157) (786) (582) Net loss $(334)
$(1,216) $(901) Basic loss per share $(0.05) $(0.18) $(0.14)
Diluted loss per share $(0.05) $(0.18) $(0.14) Weighted-average
basic shares outstanding 6,594 6,591 6,578 Weighted-average diluted
shares outstanding 6,594 6,591 6,578 Net loss $(334) $(1,216)
$(901) Other comprehensive income (loss), net of tax: Change in
unrealized gain (loss) on securities available-for-sale, net of tax
expense (benefit) of $29, ($254) and $389 for the three months
ended March 31, 2005, December 31, 2004 and, March 31, 2004,
respectively 45 (397) 608 Other comprehensive income (loss) 45
(397) 608 Comprehensive loss $(289) $(1,613) $(293) BAY VIEW
CAPITAL CORPORATION SELECTED FINANCIAL DATA (Unaudited) At At At
March 31, December 31, March 31, 2005 2004 2004 (Dollars in
thousands, except per share amounts) Auto Installment Contracts and
Loans Receivable: Auto installment contracts (1) Auto contracts
held-for-sale $109,617 $ 75,021 $207,630 Auto contracts
held-for-investment 293,470 252,863 -- Total auto installment
contracts 403,087 327,884 207,630 Other loans and leases: Franchise
loans 375 583 6,314 Asset-based loans -- 319 503 Total other loans
and leases 375 902 6,817 Auto installment contracts and other loans
receivable (2) $403,462 $328,786 $214,447 Credit Quality
(Liquidating Portfolio): Nonperforming assets - total (3) $3,029
$4,281 $5,718 Nonperforming assets - franchise $2,859 $3,792 $5,045
Loans and leases delinquent 60 days or more $375 $902 $435 Loans
and leases delinquent 60 days or more - franchise $375 $583 $-- Per
Share Data: Book value per share (4) $15.77 $15.80 $23.66 Other
Data: Full-time equivalent employees, including BVAC 125 125 134
(1) Excludes auto-related operating lease assets reported
separately from loans and leases totaling $5.9 million, $10.0
million, and $45.1 million at March 31, 2005, December 31, 2004 and
March 31, 2004, respectively. (2) Includes allowances for
mark-to-market valuation reserves and credit losses of $3.3
million, $2.7 million and $0.9 million at March 31, 2005, December
31, 2004 and March 31, 2004, respectively. (3) Nonperforming assets
include mark-to-market valuation reserves of $1.2 million, $1.2
million and $0.8 million at March 31, 2005, December 31, 2004 and
March 31, 2004, respectively. (4) Book value per share is presented
on a post-reverse stock split basis. BAY VIEW ACCEPTANCE
CORPORATION (Unaudited) At At At March 31, December 31, March 31,
2005 2004 2004 As Restated (Amounts in thousands) Selected Balance
Sheet Information: Cash $7,387 $3,278 $(642) Restricted cash 13,800
7,540 9,025 Retained interests in auto loan securitizations 21,880
22,636 29,040 Auto installment contracts held-for-sale 109,617
75,021 207,630 Auto installment contracts held-for-investment, net
293,470 252,863 -- Advances to parent 398 3,010 -- Other assets
8,443 7,969 6,427 Total assets $454,995 $372,317 $251,480 Warehouse
credit facility $160,304 $298,755 $155,158 Securitization notes
payable 220,475 -- -- Advances from parent -- -- 22,771 Current and
deferred taxes 7,565 6,947 6,411 Other liabilities 3,408 4,277
5,450 Total liabilities 391,752 309,979 189,790 Stockholder's
equity 63,243 62,338 61,690 Total liabilities and stockholder's
equity $454,995 $372,317 $251,480 BAY VIEW ACCEPTANCE CORPORATION
(Continued) (Unaudited) For the Three Months Ended March 31,
December 31, March 31, 2005 2004 2004 As Restated (Amounts in
thousands, except per share amounts) Selected Results of Operations
Information: Interest on auto contracts $6,350 $5,821 $3,913
Interest on investment securities 630 620 666 Interest expense on
borrowings (3,659) (2,647) (1,319) Net interest income 3,321 3,794
3,260 Provision for losses on installment contracts (837) (760) --
Loan servicing income 543 621 939 Unrealized gain (loss) on
derivative instruments 1,480 779 (308) Unrealized loss on auto
contracts (10) (32) (5) Loan fees and charges 150 124 215 Loss on
sale of assets, net (510) (709) (207) Other income, net 44 49 30
General and administrative expenses(2,822) (2,950) (2,910) Income
before income tax expense 1,359 916 1,014 Income tax expense (571)
(360) (418) Net income $788 $556 $596 Selected Production
Information: Dollar value of contracts purchased $115,536 $80,689
$69,337 Number of contracts purchased 4,701 2,889 2,289 Average
balance of contracts purchased $24.6 $27.9 $30.2 Weighted-average
contract rate 8.30% 8.09% 7.90% Average FICO credit score 742 746
734 Selected Credit Quality Information: Net chargeoffs on managed
contracts for period $1,680 $1,566 $1,739 Net chargeoffs as a
percentage of average managed contracts (annualized) 1.11% 1.11%
1.23% Contracts delinquent 30 days or more as a percentage of
managed contracts (as of period-end) 0.41% 0.63% 0.41% Average
Managed Contracts $598,190 $564,667 $566,371 At At At March 31,
December 31, March 31, 2005 2004 2004 (Amounts in thousands)
Managed Contracts (period-end): Total managed contracts $618,792
$570,864 $560,389 Total number of contracts 30,409 28,283 29,824
Other Data: Full-time equivalent employees 104 104 106 DATASOURCE:
Bay View Capital Corporation CONTACT: John Okubo of Bay View
Capital Corporation, +1-650-294-7778 Web site:
http://www.bayviewcapital.com/
Copyright
Bay View (NYSE:BVC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bay View (NYSE:BVC)
Historical Stock Chart
From Jul 2023 to Jul 2024