Bay View Bank
| Company type | Subsidiary |
|---|---|
| Industry | Banking |
| Founded | 1973 |
| Defunct | 2002 |
| Fate | Liquidated; assets sold to U.S. Bank and Washington Mutual |
| Headquarters | San Mateo, California , United States |
Area served | San Francisco Bay Area |
| Products | Banking services, home mortgages, commercial real estate loans, multifamily loans |
| Parent | Bay View Capital Corp. |
Bay View Bank, headquartered in San Mateo, California, operated 58 branches throughout the San Francisco Bay Area, making it one of the region’s largest locally headquartered financial institutions. As of September 30, 2002, the bank reported total deposits amounting to $3.03 billion and outstanding loans totaling $731 million.
The bank was a fully owned subsidiary of Bay View Capital Corp. In 2002, it underwent liquidation, with its assets sold off in segments. The retail branch network and home mortgage portfolios were acquired by U.S. Bank, while Washington Mutual purchased its commercial real estate and multifamily loan portfolios.
History
Bay View Capital Corporation was listed on the New York Stock Exchange under the symbol BVC. Toward the end of the 1990s, the company’s stock experienced a significant decline, losing half its value by May 2000. To preserve shareholder value, Bay View Capital explored options to divest part or all of its operations. Eventually, shareholders consented to a plan involving dissolution and phased liquidation aimed at protecting their equity.
During one quarter in 2000, Bay View Bank suffered a substantial loss of $234.5 million due to non-performing loans. In November of that year, acquisition interest was shown by Wells Fargo and Golden State Bancorp, but their offers—approximately $325 million—were deemed insufficient by the bank’s board. Despite financial difficulties, the board anticipated higher bids based on the institution’s net asset value and shareholder equity.
In July 2002, Bay View Capital announced agreements to sell Bay View Bank’s branches, deposit base, and selected loan assets to U.S. Bancorp for about $429 million. Separately, its mortgage portfolio was sold to Washington Mutual at a slight premium over book value. Both transactions were finalized by November 2002.