##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1933    
|  
|   |  | For the fiscal year ended December 31, 2005                                                 
|  
|OR
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the transition period
    from           to                                             

Commission file number 0-14879


BAY VIEW CAPITAL CORPORATION


(Exact name of registrant as specified in its charter)


|                                                                            |  |                                                    
|--------------------------------------------------------------------------- |  | ---------------------------------------------------
|Delaware(State or other jurisdiction of
     incorporation or organization) |  | 94-3078031(I.R.S. Employer
     Identification No.)

|                                                                                      |  |                
|------------------------------------------------------------------------------------- |  | ---------------
|1840 Gateway Drive
     San Mateo, California(Address of principal executive offices) |  | 94404(Zip Code)

Registrants telephone number, including area code:
(650) 312-7300


Securities registered pursuant to Section 12(b) of the
Act:


|                                        |  |                                          
|--------------------------------------- |  | -----------------------------------------
|Title of Each Class                     |  | Name of Each Exchange on Which Registered
|                                        |  |                                          
|Common Stock, par value $0.01 per share |  | New York Stock Exchange                  

Securities registered pursuant to Section 12(g) of the
Act:


None


o þ


o þ


þ o


S-K 10-K 10-K. þ


12b-2


o þ o


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE


10-K 10-K,










---



##### 










FORM 10-K


|             |  |                                                                                                                      |  |   
|------------ |  | -------------------------------------------------------------------------------------------------------------------- |  | --
|PART I      
|Item 1.      |  | Business                                                                                                             |  | 4 
|             |  | General and Business Overview                                                                                        |  | 4 
|             |  | Liquidating Portfolio                                                                                                |  | 6 
|             |  | Competition                                                                                                          |  | 6 
|             |  | Economic Conditions, Government Policies
    and Legislation                                                         |  | 6 
|             |  | Supervision and Regulation                                                                                           |  | 6 
|             |  | Employees                                                                                                            |  | 8 
|             |  | Executive Officers of the Registrant                                                                                 |  | 8 
|Item 1A.     |  | Risk Factors                                                                                                         |  | 9 
|Item 1B.     |  | Unresolved Staff Comments                                                                                            |  | 17
|Item 2.      |  | Properties                                                                                                           |  | 17
|Item 3.      |  | Legal Proceedings                                                                                                    |  | 17
|Item 4.      |  | Submission of Matters to a Vote of Security
    Holders                                                              |  | 17
|PART II     
|Item 5.      |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  | 18
|Item 6.      |  | Selected Financial Data                                                                                              |  | 18
|Item 7.      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  | 21
|Item 7A.     |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |  | 41
|Item 8.      |  | Financial Statements and Supplementary
    Data                                                                      |  | 44
|Item 9.      |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  | 84
|Item 9A.     |  | Controls and Procedures                                                                                              |  | 84
|Item 9B.     |  | Other Information                                                                                                    |  | 88
|PART III    
|Item 10.     |  | Directors and Executive Officers of the
    Registrant                                                               |  | 88
|Item 11.     |  | Executive Compensation                                                                                               |  | 88
|Item 12.     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |  | 88
|Item 13.     |  | Certain Relationships and Related
    Transactions                                                                   |  | 88
|Item 14.     |  | Principal Accounting Fees and Services                                                                               |  | 88
|PART IV     
|Item 15.     |  | Exhibits and Financial Statement
    Schedules                                                                       |  | 88
|Signatures   |  | 93                                                                                                                  
|EXHIBIT 10.1
|EXHIBIT 10.2
|EXHIBIT 10.3
|EXHIBIT 10.4
|EXHIBIT 11  
|EXHIBIT 12  
|EXHIBIT 14  
|EXHIBIT 21  
|EXHIBIT 23.1
|EXHIBIT 23.2
|EXHIBIT 31.1
|EXHIBIT 31.2
|EXHIBIT 32.1
|EXHIBIT 32.2



2



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Forward-Looking Statements


10-K 10-K


10-K,






| |   |                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------
| |  | expected cost savings from the merger may not be realized within
    the expected time frame or at all;                                       
|
| |  | revenues may be lower than expected following the merger;                                                                                     
|
| |  | the merger may not be approved by the requisite vote of
    GLBs or BVCCs stockholders;                                                     
|
| |  | the amendments to BVCCs certificate of incorporation may
    not be approved by the requisite vote of BVCCs
    stockholders;               
|
| |  | the sale of BVAC may not be approved by the requisite vote of
    BVCCs stockholders;                                                        
|
| |  | competitive pressure among financial services companies is
    intense;                                                                       
|
| |  | general economic conditions may be less favorable than expected;                                                                              
|
| |  | political conditions and related actions by the United States
    military abroad may adversely affect economic conditions as a
    whole;    
|
| |  | changes in the interest rate environment may reduce interest
    margins and impact funding sources;                                          
|
| |  | changes in market rates and prices may adversely impact the
    value of financial products and assets;                                       
|
| |  | legislation or changes in the regulatory environment may
    adversely affect the businesses in which BVCC and GLB are
    engaged; and       
|
| |  | litigation liabilities, including costs, expenses, settlements
    and judgments, may adversely affect either company or their
    businesses.

10-K 10-K.


10-K


3



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##### Table of Contents






Part I







|        |         
|------- | --------
|Item 1. | Business




General and Business Overview






| |           
| | ----------
| | Background











4



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8-K 8-K


BVAC






loan-to






5



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Liquidating Portfolio







Competition







Economic Conditions, Government Policies and Legislation









Supervision and Regulation


General




6



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Future Legislation




Fiscal and Monetary Policies




Consumer Protection Laws Affecting BVAC


Truth-in Truth-in


7



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Employees




|                                |  |  |     | 
|------------------------------- |  |  | --- | 
|Bay View Acceptance Corporation |  |  | 85  | 
|Bay View Capital Corporation    |  |  | 16  | 
|                                |  |  |    
|Total                           |  |  | 101 | 
|                                |  |  |    






Executive Officers of the Registrant




|                             |  |     |    |  |          |                                                                                                                                                                                       |           |  |      | 
|---------------------------- |  | --- | -- |  | -------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- |  | ---- | 
|                             |  |     |    |  |          | Year                                                                                                                                                                                  |          
|Name                         |  | Age |    |  | Position |                                                                                                                                                                                       | Appointed | 
|                             |  |     |    |  |          |                                                                                                                                                                                       |           | 
|Charles G. Cooper            |  |     | 58 |  |          | Director, President and Chief Executive Officer                                                                                                                                       |           |  | 2002 | 
|Prodyodth K. PK Chatterjee |  |     | 57 |  |          | Director, Executive Vice President and Director of Retail
    Operations, Bay View Capital Corporation and President and Chief
    Executive Officer, Bay View Acceptance Corporation |           |  | 2004 | 
|John Okubo                   |  |     | 52 |  |          | Executive Vice President and Chief Financial Officer                                                                                                                                  |           |  | 2002 | 
|Sossy Soukiassian            |  |     | 42 |  |          | Senior Vice President and General Auditor                                                                                                                                             |           |  | 2002 | 



Mr. Cooper


Mr. Chatterjee


Mr. Okubo


Ms. Soukiassian


8



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|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K,


Risks Specifically Related to the Merger




| |                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | GLB stockholders cannot be certain of the market value of
    the BVCC common stock that they will receive in the merger
    because the market price of BVCC common stock fluctuates.



10-K




| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | The ability of each of GLB and BVCC to pursue alternatives
    to the merger is restricted by the merger agreement.

break-up




| |                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | GLBs stockholders do not have the right to vote on
    important BVCC matters even though they will become stockholders
    of BVCC if the merger is consummated.





| |                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------
| | The amount of capital BVCC brings to the merged company
    could be substantially reduced from the amount of BVCCs
    capital at December 31, 2005.



9



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Risks Related to Owning BVCC Common Stock




| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | The combined company will be dependent on the ability of
    its subsidiaries to pay dividends in order to meet its
    obligations.





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Interest rate volatility could significantly harm the
    combined companys business.





| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | The combined companys results of operations will be
    significantly affected if its borrowers are unable to pay their
    loans.





| |   |                                                                                                  
| | - | -------------------------------------------------------------------------------------------------
| |  | credit risks of a particular borrower;                                                           
|
| |  | changes in economic and industry conditions;                                                     
|
| |  | the duration of the loan; and                                                                    
|
| |  | in the case of a collateralized loan, uncertainties as to the
    future value of the collateral.





| |                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The combined companys financial condition and
    results of operations would be adversely affected if GBSBs
    allowance for loan losses is not sufficient to absorb actual
    losses.



10



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| |   |                                                                                          
| | - | -----------------------------------------------------------------------------------------
| |  | a regular review of the quality, mix and size of the overall
    loan portfolio;         
|
| |  | historical loan loss experience;                                                         
|
| |  | evaluation of non-performing loans;                                                      
|
| |  | assessment of economic conditions and their effects on
    GBSBs existing portfolio; and
|
| |  | the amount and quality of collateral, including guarantees,
    securing loans.          



| |                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The merged companys financial condition may be
    adversely affected if GBSB is unable to attract sufficient
    deposits to fund its anticipated loan growth.





| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | The combined company could experience significant
    difficulties and complications in connection with its growth and
    acquisition strategy.







| |   |                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------
| |  | potential exposure to unknown or contingent liabilities of banks
    and non-bank entities the merged company acquires;
|
| |  | exposure to potential asset quality issues of acquired banks and
    non-bank entities;                                
|
| |  | potential disruption to the merged companys business;                                                                 
|
| |  | potential diversion of the time and attention of the merged
    companys management; and                              
|
| |  | the possible loss of key employees and customers of the banks
    and other businesses the merged company acquires.    

start-up




11



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| |                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------
| | The combined company could be adversely affected by
    changes in the law, especially changes in the regulation of the
    banking industry.

10-K.




| |   |                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------
| |  | the payment of dividends;                                                                                             
|
| |  | mergers with or acquisitions of other institutions;                                                                   
|
| |  | investments;                                                                                                          
|
| |  | loans and interest rates;                                                                                             
|
| |  | the provision of securities, insurance or trust
    services; and                                                     
|
| |  | the types of non-deposit activities in which the combined
    companys financial institution subsidiaries may engage.





| |                                                                                                             
| | ------------------------------------------------------------------------------------------------------------
| | The combined companys results of operations could be
    adversely affected due to significant competition.





| |   |                                                                              
| | - | -----------------------------------------------------------------------------
| |  | changes in regulation;                                                       
|
| |  | prevailing economic conditions in the Greater Buffalo area;                  
|
| |  | changes in technology and product delivery systems;                          
|
| |  | declining population trends; and                                             
|
| |  | the accelerated pace of consolidation among financial services
    providers.





| |                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The combined companys anticipated future growth may
    require it to raise additional capital in the future, but that
    capital may not be available when it is needed.



12



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| |                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------
| | Adverse economic conditions in GBSBs market areas
    may adversely impact its results of operations and financial
    condition.





| |                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------
| | Certain provisions of BVCCs certificate of
    incorporation and by-laws after the merger may discourage
    takeovers.





| |   |                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | classify its board of directors into three classes, so that
    stockholders elect only one-third of its board of directors each
    year;                                                 
|
| |  | permit stockholders to remove directors only for cause;                                                                                                                                    
|
| |  | do not permit stockholders to take action except at an annual or
    special meeting of stockholders;                                                                                      
|
| |  | require stockholders to give advance notice to nominate
    candidates for election to the board of directors or to make
    stockholder proposals at a stockholders meeting;             
|
| |  | permit the board of directors to issue, without stockholder
    approval unless otherwise required by law, preferred stock with
    such terms as its board of directors may determine; and
|
| |  | prohibit the acquisition of 5% or more of BVCCs common
    stock, without the prior approval of its board of directors.                                                                   





13



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| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | Loss of members of the combined companys executive
    team could have a negative impact on its business.





| |                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If it should be ultimately determined that BVCCs
    reserves for the contingent liabilities remaining from the
    dissolution of BVB are not adequate, it could have a material
    adverse effect on the combined company.



Risks Relating to BVAC




| |                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The sale of BVAC may not occur notwithstanding the
    decision of BVCCs board of directors that the sale of BVAC
    is in the best interests of BVCC and its stockholders.





| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | The purchase agreement limits BVCCs and BVACs
    ability to pursue alternatives to the sale of BVAC.

break-up




| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | The purchase agreement restricts the activities in which
    BVAC may engage pending the merger.





| |                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Certain indemnification obligations of BVCC under the
    purchase agreement survive indefinitely and are not limited in
    amount which could adversely affect the financial condition of
    the merged company.



14



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| |                                                                   
| | ------------------------------------------------------------------
| | BVACs business is dependent upon general economic
    conditions.





| |                                          
| | -----------------------------------------
| | BVAC is also subject to litigation risks.





| |   |                                               
| | - | ----------------------------------------------
| |  | usury laws;                                   
|
| |  | inaccurate disclosures;                       
|
| |  | wrongful repossession;                        
|
| |  | violations of bankruptcy stay provisions;     
|
| |  | certificate of title disputes;                
|
| |  | fraud;                                        
|
| |  | breach of contract; and                       
|
| |  | discriminatory treatment of credit applicants.





| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | BVAC is subject to significant government regulation,
    violations of which could have a material adverse effect on
    BVAC.





| |   |                                                                  
| | - | -----------------------------------------------------------------
| |  | licensing requirements;                                          
|
| |  | record-keeping requirements;                                     
|
| |  | payment of fees to certain states;                               
|
| |  | maximum interest rates that may be charged;                      
|
| |  | interest rates on loans to customers serving in the military;    
|
| |  | debt collection practices;                                       
|
| |  | disclosure to customers regarding financing terms;               
|
| |  | the privacy of certain consumer information; and                 
|
| |  | collection of debt from loan customers who have filed bankruptcy.



15



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| |                                            
| | -------------------------------------------
| | Changes in law could adversely affect BVAC.





| |                                                                               
| | ------------------------------------------------------------------------------
| | BVAC is dependent upon its ability to effect
    securitizations periodically.





| |                                             
| | --------------------------------------------
| | BVAC operates in a competitive market place.





| |   |                                                                        
| | - | -----------------------------------------------------------------------
| |  | the maintenance of favorable relationships with automobile
    dealers;
|
| |  | interest rates charged;                                                
|
| |  | the quality of credit accepted;                                        
|
| |  | the flexibility of loan terms offered; and                             
|
| |  | the quality of service provided.                                       



Risks Relating to Tax Matters




| |                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If the transfer restrictions are not effective in
    preventing an ownership change from occurring, the merged
    companys ability to use BVCCs net operating loss
    carryforwards could be severely limited.





| |                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The transfer restrictions may delay or prevent takeover
    bids by third parties and may delay or frustrate attempts by
    stockholders to replace management.



16



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| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | The value of the net operating loss carryforwards is
    subject to challenge by the IRS.





| |   |                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the ability of the merged company to generate sufficient net
    income to utilize the net operating loss carryforwards;                        
|
| |  | the absence of a future ownership change of BVCC within the
    meaning of Section 382 of the Code;                                             
|
| |  | the acceptance by the IRS of the positions taken on BVCCs
    prior tax returns as to the amount and timing of its income and
    expenses; and
|
| |  | future changes in laws or regulations relating to the use of net
    operating loss carryforwards.                                              






|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments








|        |           
|------- | ----------
|Item 2. | Properties








|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings














|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders



17



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Part II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities



|                   |  |         |       |  |         |   |       |         |  |   |         |  |  |   |       | 
|------------------ |  | ------- | ----- |  | ------- | - | ----- | ------- |  | - | ------- |  |  | - | ----- | 
|                   |  | 2005    |      
|                   |  |         |      
|                   |  | First   |       |  | Second  |   |       | Third   |  |   | Fourth  | 
|                   |  | Quarter |       |  | Quarter |   |       | Quarter |  |   | Quarter | 
|                   |  |         |       |  |         |   |       |         |  |   |         | 
|Stock price  high |  | $       | 17.38 |  |         | $ | 16.24 |         |  | $ | 15.95   |  |  | $ | 18.00 | 
|Stock price  low  |  | $       | 15.58 |  |         | $ | 15.27 |         |  | $ | 15.32   |  |  | $ | 15.30 | 

|                   |  |         |       |  |         |   |       |         |  |   |         |  |  |   |       | 
|------------------ |  | ------- | ----- |  | ------- | - | ----- | ------- |  | - | ------- |  |  | - | ----- | 
|                   |  | 2004    |      
|                   |  |         |      
|                   |  | First   |       |  | Second  |   |       | Third   |  |   | Fourth  | 
|                   |  | Quarter |       |  | Quarter |   |       | Quarter |  |   | Quarter | 
|                   |  |         |       |  |         |   |       |         |  |   |         | 
|Stock price  high |  | $       | 24.00 |  |         | $ | 22.40 |         |  | $ | 19.75   |  |  | $ | 18.00 | 
|Stock price  low  |  | $       | 21.30 |  |         | $ | 20.00 |         |  | $ | 16.15   |  |  | $ | 15.31 | 








|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data

|                                                                                             |  |                        |         |             |       |   |               |       |  |   |         |  |  |      |         |  |  |   |           | 
|-------------------------------------------------------------------------------------------- |  | ---------------------- | ------- | ----------- | ----- | - | ------------- | ----- |  | - | ------- |  |  | ---- | ------- |  |  | - | --------- | 
|                                                                                             |  | At December 31,        |        
|                                                                                             |  |                        |        
|                                                                                             |  | 2005                   |         |             | 2004  |   |               | 2003  |  |   | 2002    |  |  | 2001 |        
|                                                                                             |  |                        |         |             |       |   |               |       |  |   |         |  |  |      |        
|                                                                                             |  |                        |         | Liquidation |       |   | Going Concern |      
|Selected Balance Sheet Information(1)                                                        |  | Going Concern Basis    |         |             | Basis |   |               | Basis | 
|                                                                                             |  |                        |         |             |       |   |               |       | 
|                                                                                             |  | (Dollars in thousands) |        
|Total assets                                                                                 |  | $                      | 714,761 |             |       | $ | 427,519       |       |  | $ | 364,118 |  |  | $    | 875,545 |  |  | $ | 4,014,105 | 
|Retained interests in securitizations available-for-sale and
    other investment securities |  |                        | 20,107  |             |       |   | 22,636        |       |  |   | 28,836  |  |  |      | 38,137  |  |  |   | 98,980    | 
|Mortgage-backed securities                                                                   |  |                        |        |             |       |   |              |       |  |   | 5,893   |  |  |      | 32,516  |  |  |   | 278,891   | 
|Loans and leases held-for-investment, net                                                    |  |                        | 633,621 |             |       |   | 252,863       |       |  |   |        |  |  |      |        |  |  |   | 2,326,787 | 
|Loans and leases held-for-sale                                                               |  |                        |        |             |       |   | 75,923        |       |  |   | 177,948 |  |  |      | 311,014 |  |  |   | 40,608    | 
|Investment in operating lease assets, net                                                    |  |                        |        |             |       |   | 10,041        |       |  |   | 66,657  |  |  |      | 191,005 |  |  |   | 339,349   | 
|Intangible assets                                                                            |  |                        | 1,846   |             |       |   | 1,846         |       |  |   | 1,846   |  |  |      |        |  |  |   | 123,573   | 
|Deposits                                                                                     |  |                        |        |             |       |   |              |       |  |   |        |  |  |      | 224,189 |  |  |   | 3,234,927 | 
|Borrowings                                                                                   |  |                        | 621,295 |             |       |   | 300,650       |       |  |   | 179,060 |  |  |      | 61,969  |  |  |   | 287,168   | 
|Capital Securities(2)                                                                        |  |                        |        |             |       |   |              |       |  |   |        |  |  |      | 90,000  |  |  |   | 90,000    | 
|Net assets in liquidation                                                                    |  |                        |        |             |       |   |              |       |  |   |        |  |  |      | 410,064 |  |  |   |          | 
|Stockholders equity                                                                         |  |                        | 70,515  |             |       |   | 104,193       |       |  |   | 155,932 |  |  |      |        |  |  |   | 336,187   | 

18



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|                                                           |  |                                                  |         |   |                   |               |         |                     |              |   |               |               |  |              |              |   |               |   |         |              |  |   |          |   |  |   |          |  
|---------------------------------------------------------- |  | ------------------------------------------------ | ------- | - | ----------------- | ------------- | ------- | ------------------- | ------------ | - | ------------- | ------------- |  | ------------ | ------------ | - | ------------- | - | ------- | ------------ |  | - | -------- | - |  | - | -------- | -
|                                                           |  |                                                  |         |   |                   | For the Three |         |                     | For the Nine |   |               | For the Three |  |              | For the Nine |   |               |  
|                                                           |  | For the Year                                     |         |   | For the Year      |               |         | Months              |              |   | Months        |               |  | Months       |              |   | Months        |   |         | For the Year | 
|                                                           |  | Ended                                            |         |   | Ended             |               |         | Ended               |              |   | Ended         |               |  | Ended        |              |   | Ended         |   |         | Ended        | 
|Selected Results of Operations                             |  | December 31,                                     |         |   | December 31,      |               |         | December 31,        |              |   | September 30, |               |  | December 31, |              |   | September 30, |   |         | December 31, | 
|Information(1)                                             |  | 2005                                             |         |   | 2004              |               |         | 2003                |              |   | 2003          |               |  | 2002         |              |   | 2002          |   |         | 2001         | 
|                                                           |  |                                                  |         |   |                   |               |         |                     |              |   |               |               |  |              |              |   |               |   |         |              | 
|                                                           |  | Going Concern Basis                              |         |   | Liquidation Basis |               |         | Going Concern Basis |             
|                                                           |  |                                                  |         |   |                   |               |         |                     |             
|                                                           |  | (Dollars in thousands, except per share amounts) |        
|Interest income                                            |  | $                                                | 40,253  |   |                   | $             | 22,609  |                     |              | $ | 4,936         |               |  | $            | 17,951       |   |               | $ | 17,247  |              |  | $ | 145,239  |   |  | $ | 302,745  |  
|Interest expense                                           |  |                                                  | (22,617 | ) |                   |               | (8,845  | )                   |              |   | (3,612        | )             |  |              | (8,411       | ) |               |   | (10,001 | )            |  |   | (60,068  | ) |  |   | (180,497 | )
|                                                           |  |                                                  |         |   |                   |               |         |                     |              |   |               |               |  |              |              |   |               |   |         |              | 
|Net interest income                                        |  |                                                  | 17,636  |   |                   |               | 13,764  |                     |              |   | 1,324         |               |  |              | 9,540        |   |               |   | 7,246   |              |  |   | 85,171   |   |  |   | 122,248  |  
|Provision for credit losses                                |  |                                                  | (7,947  | ) |                   |               | (1,612  | )                   |              |   |              |               |  |              |             |   |               |   |        |              |  |   | (10,700  | ) |  |   | (71,890  | )
|Leasing income                                             |  |                                                  | 4,800   |   |                   |               | 12,941  |                     |              |   | 6,907         |               |  |              | 32,578       |   |               |   | 14,639  |              |  |   | 56,188   |   |  |   | 92,305   |  
|Gain (loss) on sales of assets and liabilities, net        |  |                                                  | (1,247  | ) |                   |               | (1,887  | )                   |              |   | 842           |               |  |              | 787          |   |               |   | 81      |              |  |   | 18,625   |   |  |   | (10,547  | )
|Other income, net                                          |  |                                                  | 3,449   |   |                   |               | 5,985   |                     |              |   | 2,586         |               |  |              | 3,722        |   |               |   | 3,600   |              |  |   | 16,752   |   |  |   | 25,411   |  
|General and administrative expenses                        |  |                                                  | (27,395 | ) |                   |               | (25,211 | )                   |              |   | (5,747        | )             |  |              | (26,338      | ) |               |   | (17,697 | )            |  |   | (106,101 | ) |  |   | (155,287 | )
|Restructuring charges                                      |  |                                                  |        |   |                   |               |        |                     |              |   |              |               |  |              |             |   |               |   |        |              |  |   |         |   |  |   | (6,935   | )
|Revaluation of franchise-related assets                    |  |                                                  |        |   |                   |               |        |                     |              |   |              |               |  |              |             |   |               |   |        |              |  |   |         |   |  |   | (70,146  | )
|Leasing expense                                            |  |                                                  | (739    | ) |                   |               | (9,163  | )                   |              |   | (5,938        | )             |  |              | (24,421      | ) |               |   | (10,854 | )            |  |   | (43,984  | ) |  |   | (86,120  | )
|Real estate operations, net                                |  |                                                  | (485    | ) |                   |               | (1,255  | )                   |              |   | (831          | )             |  |              | (463         | ) |               |   | (397    | )            |  |   | (1,222   | ) |  |   | (5,021   | )
|Amortization of intangible assets                          |  |                                                  |        |   |                   |               |        |                     |              |   |              |               |  |              |             |   |               |   |        |              |  |   | (993     | ) |  |   | (11,280  | )
|                                                           |  |                                                  |         |   |                   |               |         |                     |              |   |               |               |  |              |              |   |               |   |         |              | 
|Income (loss) before income tax expense (benefit)          |  |                                                  | (11,928 | ) |                   |               | (6,438  | )                   |              |   | (857          | )             |  |              | (4,595       | ) |               |   | (3,382  | )            |  |   | 13,736   |   |  |   | (177,262 | )
|Adjustment for liquidation basis accounting                |  |                                                  |        |   |                   |               |        |                     |              |   |              |               |  |              | (5,995       | ) |               |   | (2,761  | )            |  |   | 266,510  |   |  |   |         |  
|Income tax (expense) benefit                               |  |                                                  | (22,522 | ) |                   |               | 2,526   |                     |              |   | 184           |               |  |              | 6,252        |   |               |   | 4,886   |              |  |   | (181,792 | ) |  |   | 85,866   |  
|Dividends on Capital Securities(3)                         |  |                                                  |        |   |                   |               |        |                     |              |   |              |               |  |              |             |   |               |   | (2,742  | )            |  |   | (7,873   | ) |  |   | (9,774   | )
|Cumulative effect of change in accounting principle        |  |                                                  |        |   |                   |               |        |                     |              |   |              |               |  |              |             |   |               |   |        |              |  |   | (18,920  | ) |  |   |         |  
|                                                           |  |                                                  |         |   |                   |               |         |                     |              |   |               |               |  |              |              |   |               |   |         |              | 
|Net income (loss) and changes in net assets in liquidation |  | $                                                | (34,450 | ) |                   | $             | (3,912  | )                   |              | $ | (673          | )             |  | $            | (4,338       | ) |               | $ | (3,999  | )            |  | $ | 71,661   |   |  | $ | (101,170 | )
|                                                           |  |                                                  |         |   |                   |               |         |                     |              |   |               |               |  |              |              |   |               |   |         |              | 
|Earnings (loss) per diluted share(4)                       |  | $                                                | (5.22   | ) |                   | $             | (0.59   | )                   |              | $ | (0.10         | )             |  |              | N/A          |   |               |   | N/A     |              |  | $ | 11.35    |   |  | $ | (19.89   | )
|Cash distributions per share(4)                            |  | $                                                |        |   |                   | $             | 7.25    |                     |              | $ | 40.00         |               |  | $            |             |   |               | $ |        |              |  | $ |         |   |  | $ |         |  

19



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|                                              |  |                                        |       |                                         |       |   |         |       |  |       |       |   |  |      |        |   |  |   |        |  
|--------------------------------------------- |  | -------------------------------------- | ----- | --------------------------------------- | ----- | - | ------- | ----- |  | ----- | ----- | - |  | ---- | ------ | - |  | - | ------ | -
|                                              |  | At and For the Year Ended December 31, |      
|                                              |  |                                        |      
|                                              |  | 2005                                   |       |                                         | 2004  |   |         | 2003  |  |       | 2002  |   |  | 2001 |       
|                                              |  |                                        |       |                                         |       |   |         |       |  |       |       |   |  |      |       
|                                              |  |                                        |       |                                         |       |   |         |       |  | Going |      
|                                              |  |                                        |       | Liquidation                             |       |   | Concern |      
|Selected Other Information(1)                 |  | Going Concern Basis                    |       |                                         | Basis |   |         | Basis | 
|                                              |  |                                        |       |                                         |       |   |         |       | 
|                                              |  |                                        |       | (Dollars in thousands, except per share |      
|                                              |  |                                        |       | amounts)                                |      
|Net interest margin                           |  |                                        | 3.21  | %                                       |       |   | 4.41    | %     |  |       | 2.71  | % |  |      | N/A    |   |  |   | 3.18   | %
|Book value per share(4)                       |  | $                                      | 10.66 |                                         |       | $ | 15.80   |       |  | $     | 23.71 |   |  |      | N/A    |   |  | $ | 53.72  |  
|Nonperforming assets                          |  | $                                      | 1,667 |                                         |       | $ | 4,742   |       |  | $     | 7,133 |   |  | $    | 27,268 |   |  | $ | 89,817 |  
|Ratio of nonperforming assets to total assets |  |                                        | 0.23  | %                                       |       |   | 1.12    | %     |  |       | 1.96  | % |  |      | 3.11   | % |  |   | 2.24   | %






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The financial statements for the periods from September 30,
    2002 through September 30, 2003 have been prepared using
    liquidation basis accounting.                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(2) | Effective December 31, 2003, BVCC adopted FASB Financial
    Interpretation No. 46, Consolidation of Variable
    Interest Entities, as revised, and, accordingly,
    deconsolidated Bay View Capital I. As a result, as of
    December 31, 2003, the 9.76% Capital Securities of Bay View
    Capital I are no longer reflected on the Companys
    Consolidated Statement of Financial Condition while BVCCs
    underlying 9.76% Junior Subordinated Deferrable Interest
    Debentures, which were acquired by Bay View Capital I, are
    reflected as borrowings of BVCC.
|   
|(3) | Effective July 1, 2003, BVCC adopted Statement of Financial
    Accounting Standards (SFAS) No. 150,
    Accounting for Certain Financial Instruments with
    Characteristics of both Liabilities and Equity.
    Year-to-date dividend
    expense on the Capital Securities is now reflected in interest
    on borrowings. SFAS No. 150 does not allow for prior
    year restatements.                                                                                                                                                                                      
|   
|(4) | Adjusted to retroactively reflect a
    1-for-10 reverse stock
    split effective June 30, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

INDEX


|                                                            |                                               |                                                                                     |    |    |    | 
|----------------------------------------------------------- | --------------------------------------------- | ----------------------------------------------------------------------------------- | -- | -- | -- | 
|Strategic Overview                                          |                                               |                                                                                     | 22 |   
|                                                            | Liquidation of Bay View Bank                  |                                                                                     |    | 22 |   
|                                                            | Auto Finance                                  |                                                                                     |    | 22 |   
|                                                            | Critical Accounting Policies                  |                                                                                     |    | 23 |   
|Accounting Changes and Recent Accounting
    Pronouncements |                                               |                                                                                     | 27 |   
|Results of Operations                                       |                                               |                                                                                     | 28 |   
|                                                            | Going Concern Basis                           |                                                                                     |    | 28 |   
|                                                            |                                               | Results of Operations  Years
    ended December 31, 2005 and 2004                  |    |    | 28 | 
|                                                            |                                               | Results of Operations  Three
    Months ended December 31, 2003                    |    |    | 32 | 
|                                                            | Liquidation Basis                             |                                                                                     |    | 34 |   
|                                                            |                                               | Changes in Net Assets in
    Liquidation  Nine Months ended September 30,
    2003 |    |    | 34 | 
|Balance Sheet Analysis                                      |                                               |                                                                                     | 35 |   
|                                                            | Restricted Cash                               |                                                                                     |    | 35 |   
|                                                            | Retained Interests in Securitizations         |                                                                                     |    | 35 |   
|                                                            | Auto Contracts and Other Loans
    Receivable |                                                                                     |    | 36 |   
|                                                            | Borrowings                                    |                                                                                     |    | 38 |   
|Liquidity and Capital Resources                             |                                               |                                                                                     | 39 |   
|Contractual Obligations                                     |                                               |                                                                                     | 40 |   
|Stock Repurchase Program                                    |                                               |                                                                                     | 41 |   
|Impact of Inflation and Changing Prices                     |                                               |                                                                                     | 41 |   

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Strategic Overview







Liquidation of Bay View Bank










| |   |                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Adverse market conditions in the auto finance sector, which
    caused our Board to conclude that the near-term sale of BVAC to
    a third party, or distribution of the stock of BVAC to our
    stockholders, as contemplated by the Original Plan, would not be
    the best method of maximizing stockholder value;
|
| |  | The opportunity to obtain greater corporate and financial
    flexibility than we would have if we were operating as a
    dissolving corporation; and                                                                                                                                                                  
|
| |  | A determination that our remaining tax net operating loss
    carryforwards could be more fully utilized by continuing to
    operate BVAC beyond the third quarter of 2005.                                                                                                                                            

1-for-10







Auto Finance




22



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loan-to









Critical Accounting Policies






| |                                               
| | ----------------------------------------------
| | Going Concern vs. Liquidation Basis Accounting



re-adopted




| |   |                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Goodwill: Reestablished the $1.8 million of goodwill
    related to our acquisition of BVACs predecessor entity,
    CTL, Inc., that existed prior to our adoption of liquidation
    basis accounting;

23



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| |   |                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Premium on investment in BVAC: Reversed $10.0 million of
    premium over the book value of BVAC, which was recorded as
    deferred gain under liquidation basis accounting, and restored
    the historical cost basis in our equity investment in BVAC;                                                                 
|
| |  | Auto contracts: Reversed unrealized gains that were recorded
    under liquidation basis accounting and restored the lower of
    cost or market valuation;                                                                                                                                                                
|
| |  | Mortgage-backed securities: Restored fair value accounting for
    these available-for-sale securities;                                                                                                                                                                                                                    
|
| |  | Accrued liabilities: Reversed $1.7 million of accruals
    related to certain severance and occupancy costs that were
    recorded under liquidation basis accounting and adopted
    Statement of Financial Accounting Standards (SFAS)
    No. 146, Accounting for Costs Associated with
    Disposal Activities; and
|
| |  | Stockholders equity: Restored stockholders equity as
    of October 1, 2003.                                                                                                                                                                                                                                             





| |                                                                          
| | -------------------------------------------------------------------------
| | Securitization Transactions and Retained Interests in
    Securitizations









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|                                             |  |                
|-------------------------------------------- |  | ---------------
|Weighted-average discount rate               |  | 10.0%          
|Range of projected annual credit losses, net |  | 1.45% - 1.65%  
|Range of projected cumulative credit losses  |  | 2.31% - 2.44%  
|Prepayment speed                             |  | 1.35 - 1.50 ABS







| |                            
| | ---------------------------
| | Allowance for Credit Losses



90-day


25



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| |             
| | ------------
| | Income Taxes









| |                       
| | ----------------------
| | Derivative Instruments







26



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Accounting Changes and Recent Accounting Pronouncements








27



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03-01


94-6 94-6 94-6





Results of Operations








| |   |                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Consolidated Statements of Financial Condition as of
    December 31, 2005 and 2004,                                                                                 
|
| |  | Consolidated Statements of Operations and Comprehensive Loss for
    the years ended December 31, 2005 and 2004 and the three
    months ended December 31, 2003, and
|
| |  | Consolidated Statements of Changes in Net Assets in Liquidation
    for the nine months ended September 30, 2003.                                                    




Going Concern Basis





Results of Operations  Years ended
December 31, 2005 and 2004






28



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| |                                            
| | -------------------------------------------
| | Net Interest Income and Net Interest Margin







29



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|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |   |        |        |  |  |      |      |  
|-------------------------------------------- | ----------------------------------------------------- | ------------------------------------ | ------- | ------- | ------------------------------------ | - | ------- | ---------- | - | ------- | ------- | ---- | - | -------- | ------- | ------- | ---------- | - | ------ | ------ |  |  | ---- | ---- | -
|                                             |                                                       | Average Balances, Yields and Rates   |        
|                                             |                                                       |                                      |        
|                                             |                                                       | For the Year Ended December 31, 2005 |         |         | For the Year Ended December 31, 2004 |  
|                                             |                                                       |                                      |         |         |                                      |  
|                                             |                                                       | Average                              |         |         |                                      |   | Average |            |   | Average |         |      |   |          | Average |        
|                                             |                                                       | Balance                              |         |         | Interest                             |   |         | Yield/Rate |   |         | Balance |      |   | Interest |         |         | Yield/Rate |  
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|                                             |                                                       | (Dollars in thousands)               |        
|Assets                                      
|Interest-earning assets:                     |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |   |        |        |  |  |      |     
|                                             | Restricted cash and other short-term investments      |                                      | $       | 36,102  |                                      |   | $       | 1,756      |   |         |         | 4.80 | % |          | $       | 33,640  |            |   | $      | 516    |  |  |      | 1.53 | %
|                                             | Retained interests in securitizations                 |                                      |         | 21,225  |                                      |   |         | 1,948      |   |         |         | 9.18 |   |          |         | 26,622  |            |   |        | 2,345  |  |  |      | 8.81 |  
|                                             | Mortgage-backed and other securities                  |                                      |         |        |                                      |   |         |           |   |         |         |     |   |          |         | 742     |            |   |        | 48     |  |  |      | 6.47 |  
|                                             | Auto installment contracts and other loans receivable |                                      |         | 223,920 |                                      |   |         | 17,913     |   |         |         | 8.01 |   |          |         | 251,380 |            |   |        | 19,700 |  |  |      | 7.83 |  
|                                             | Securitized auto installment contracts                |                                      |         | 271,751 |                                      |   |         | 18,636     |   |         |         | 6.85 |   |          |         |        |            |   |        |       |  |  |      |     |  
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Total interest-earning assets                |                                                       |                                      | 552,998 |         |                                      |   | 40,253  |            |   |         | 7.27    | %    |   |          | 312,384 |         |            |   | 22,609 |        |  |  | 7.23 | %   
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Other assets                                 |                                                       |                                      | 51,271  |         |                                      |   |         |            |   |         |         |      |   |          | 81,554  |         |            |   |        |        |  |  |      |     
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Total assets                                 |                                                       | $                                    | 604,269 |         |                                      |   |         |            |   |         |         |      |   | $        | 393,938 |         |            |   |        |        |  |  |      |     
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|                                            
|Liabilities and Stockholders Equity        
|Interest-bearing liabilities:                |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |   |        |        |  |  |      |     
|                                             | Warehouse credit facility and other borrowings        |                                      | $       | 223,126 |                                      |   |         | 10,242     |   |         |         | 4.53 | % |          | $       | 215,775 |            |   |        | 5,647  |  |  |      | 2.58 | %
|                                             | Interest rate swap (income) expense                   |                                      |         |        |                                      |   |         | (62        | ) |         |         |     |   |          |         |        |            |   |        | 1,995  |  |  |      |     |  
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|                                             | Warehouse credit facility, other borrowings and swaps |                                      |         | 223,126 |                                      |   |         | 10,180     |   |         |         | 4.50 |   |          |         | 215,775 |            |   |        | 7,642  |  |  |      | 3.50 |  
|                                             | Junior Subordinated Deferrable Interest Debentures    |                                      |         |        |                                      |   |         |           |   |         |         |     |   |          |         | 12,256  |            |   |        | 1,203  |  |  |      | 9.77 |  
|                                             | Securitization notes payable                          |                                      |         | 260,273 |                                      |   |         | 12,437     |   |         |         | 4.79 |   |          |         |        |            |   |        |       |  |  |      |     |  
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Total interest-bearing liabilities           |                                                       |                                      | 483,399 |         |                                      |   | 22,617  |            |   |         | 4.65    | %    |   |          | 228,031 |         |            |   | 8,845  |        |  |  | 3.84 | %   
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Other liabilities                            |                                                       |                                      | 17,061  |         |                                      |   |         |            |   |         |         |      |   |          | 35,629  |         |            |   |        |        |  |  |      |     
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Total liabilities                            |                                                       |                                      | 500,460 |         |                                      |   |         |            |   |         |         |      |   |          | 263,660 |         |            |   |        |        |  |  |      |     
|Stockholders equity                         |                                                       |                                      | 103,809 |         |                                      |   |         |            |   |         |         |      |   |          | 130,278 |         |            |   |        |        |  |  |      |     
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Total liabilities and stockholders equity   |                                                       | $                                    | 604,269 |         |                                      |   |         |            |   |         |         |      |   | $        | 393,938 |         |            |   |        |        |  |  |      |     
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Net interest income/net interest rate spread |                                                       |                                      |         |         |                                      | $ | 17,636  |            |   |         | 2.62    | %    |   |          |         |         |            | $ | 13,764 |        |  |  | 3.39 | %   
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Net interest-earning assets                  |                                                       | $                                    | 69,599  |         |                                      |   |         |            |   |         |         |      |   | $        | 84,353  |         |            |   |        |        |  |  |      |     
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  
|Net interest margin                          |                                                       |                                      |         |         |                                      |   |         |            |   |         | 3.21    | %    |   |          |         |         |            |   |        |        |  |  | 4.41 | %   
|                                             |                                                       |                                      |         |         |                                      |   |         |            |   |         |         |      |   |          |         |         |            |  



| |                            
| | ---------------------------
| | Provision for Credit Losses



30



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| |                   
| | ------------------
| | Noninterest Income







| |                    
| | -------------------
| | Noninterest Expense





|                                                                                                            |  |                        |         |   |              |   |         |  
|----------------------------------------------------------------------------------------------------------- |  | ---------------------- | ------- | - | ------------ | - | ------- | -
|                                                                                                            |  | For the Year Ended     |        
|                                                                                                            |  |                        |        
|                                                                                                            |  | December 31,           |         |   | December 31, |  
|                                                                                                            |  | 2005                   |         |   | 2004         |  
|                                                                                                            |  |                        |         |   |              |  
|                                                                                                            |  | (Dollars in thousands) |        
|General and administrative expenses                                                                         |  | $                      | 27,395  |   |              | $ | 25,211  |  
|Average managed assets, including auto-related securitized assets                                           |  | $                      | 792,560 |   |              | $ | 709,735 |  
|General and administrative expense to average managed assets,
    including auto-related securitized assets |  |                        | 3.46    | % |              |   | 3.55    | %
|                                                                                                            |  |                        |         |   |              |  



31



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| |             
| | ------------
| | Income Taxes










Results of Operations  Three Months ended
December 31, 2003








| |                    
| | -------------------
| | Net Interest Income



32



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|                                           |                                                       |                                    |         |         |          |   |         |            |  |  |       |       |  
|------------------------------------------ | ----------------------------------------------------- | ---------------------------------- | ------- | ------- | -------- | - | ------- | ---------- |  |  | ----- | ----- | -
|                                           |                                                       | Average Balances, Yields and Rates |        
|                                           |                                                       |                                    |        
|                                           |                                                       | For the Three Months Ended         |        
|                                           |                                                       | December 31, 2003                  |        
|                                           |                                                       |                                    |        
|                                           |                                                       | Average                            |         |         |          |   | Average |           
|                                           |                                                       | Balance                            |         |         | Interest |   |         | Yield/Rate | 
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|                                           |                                                       | (Dollars in thousands)             |        
|Assets                                     |                                                       |                                    |         |         |          |   |         |            |  |  |       |      
|Interest-earning assets:                   |                                                       |                                    |         |         |          |   |         |            |  |  |       |      
|                                           | Auto installment contracts and other loans receivable |                                    | $       | 175,621 |          |   | $       | 3,757      |  |  |       | 8.48  | %
|                                           | Investments(1)                                        |                                    |         | 242,863 |          |   |         | 1,013      |  |  |       | 1.65  |  
|                                           | Mortgage-backed securities(1)                         |                                    |         | 11,105  |          |   |         | 166        |  |  |       | 5.95  |  
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Total interest-earning assets              |                                                       |                                    | 429,589 |         |          |   | 4,936   |            |  |  | 4.56  | %    
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Other assets                               |                                                       |                                    | 29,740  |         |          |   |         |            |  |  |       |      
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Total assets                               |                                                       | $                                  | 459,329 |         |          |   |         |            |  |  |       |      
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|                                          
|Liabilities and Stockholders Equity       |                                                       |                                    |         |         |          |   |         |            |  |  |       |      
|Interest-bearing liabilities:              |                                                       |                                    |         |         |          |   |         |            |  |  |       |      
|                                           | Borrowings(2)                                         |                                    | $       | 128,781 |          |   |         | 3,612      |  |  |       | 11.20 | %
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Total interest-bearing liabilities         |                                                       |                                    | 128,781 |         |          |   | 3,612   |            |  |  | 11.20 | %    
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Other liabilities                          |                                                       |                                    | 47,550  |         |          |   |         |            |  |  |       |      
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Total liabilities                          |                                                       |                                    | 176,331 |         |          |   |         |            |  |  |       |      
|Stockholders equity                       |                                                       |                                    | 282,998 |         |          |   |         |            |  |  |       |      
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Total liabilities and stockholders equity |                                                       | $                                  | 459,329 |         |          |   |         |            |  |  |       |      
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Net interest income/net interest spread    |                                                       |                                    |         |         |          | $ | 1,324   |            |  |  | (6.64 | )%   
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Net interest-earning assets                |                                                       | $                                  | 300,808 |         |          |   |         |            |  |  |       |      
|                                           |                                                       |                                    |         |         |          |   |         |            | 
|Net interest margin(3)                     |                                                       |                                    |         |         |          |   |         |            |  |  | 1.71  | %    
|                                           |                                                       |                                    |         |         |          |   |         |            | 






|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Average balances and yields for securities and other investments
    classified as available-for-sale are based on historical
    amortized cost.
|   
|(2) | Interest expense for borrowings includes expenses related to our
    Capital Securities.                                                         
|   
|(3) | Annualized net interest income divided by average
    interest-earning assets.                                                                   

33



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| |                               
| | ------------------------------
| | Noninterest Income and Expense

mark-to




| |                
| | ---------------
| | Leasing Expense





| |             
| | ------------
| | Income Taxes






Liquidation Basis





Changes in Net Assets in Liquidation  Nine Months
ended September 30, 2003






mark-to








34



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Balance Sheet Analysis









| |                
| | ---------------
| | Restricted Cash







| |                                      
| | -------------------------------------
| | Retained Interests in Securitizations



|                                            |           |                        |        |        |      |   |        |        | 
|------------------------------------------- | --------- | ---------------------- | ------ | ------ | ---- | - | ------ | ------ | 
|                                            |           | At December 31,        |       
|                                            |           |                        |       
|                                            |           | 2005                   |        |        | 2004 |  
|                                            |           |                        |        |        |      |  
|                                            |           | (Dollars in thousands) |       
|Transaction:                                |           |                        |        |        |      |   |        |       
|                                            | 2002-LJ-1 |                        | $      | 14,028 |      |   | $      | 15,622 | 
|                                            | 2003-LJ-1 |                        |        | 6,079  |      |   |        | 7,014  | 
|                                            |           |                        |        |        |      |  
|Total retained interests in securitizations |           | $                      | 20,107 |        |      | $ | 22,636 |       
|                                            |           |                        |        |        |      |  



35



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| |                                          
| | -----------------------------------------
| | Auto Contracts and Other Loans Receivable



|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |         |       |     |       |      |     |     | 
|---------------------------------------------------------------- | ---------------------------------------------------------------- | ----------------------------------------------------- | ----------------- | ------- | ----- | - | ----- | ------ | ---- | - | ------- | ------- | ----- | --- | ----- | ---- | --- | --- | 
|                                                                 |                                                                  | At December 31,                                       |                  
|                                                                 |                                                                  |                                                       |                  
|                                                                 |                                                                  | 2005                                                  |                   |         | 2004  |  
|                                                                 |                                                                  |                                                       |                   |         |       |  
|                                                                 |                                                                  |                                                       |                   | % of    |       |   |       |        | % of |  
|                                                                 |                                                                  | Amount                                                |                   |         | Total |   |       | Amount |      |   | Total   |        
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        
|                                                                 |                                                                  | (Dollars in thousands)                                |                  
|Auto installment contracts and other loans receivable(1):        |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |         |       |     |       |     
|                                                                 | Auto installment contracts held-for-sale                         |                                                       | $                 |        |       |   |       |       | %    |   | $       | 73,462  |       |     |       | 22.3 | %  
|                                                                 |                                                                  | Premiums, discounts, and deferred fees and costs, net |                   |         |      |   |       |        |     |   |         |         | 1,559 |     |       |      | 0.5 |    
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        
|                                                                 | Auto installment contracts held-for-sale, net                    |                                                       |                   |        |       |   |       |       |      |   |         | 75,021  |       |     |       | 22.8 |    
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        
|                                                                 | Other loans held-for-sale:(2)                                    |                                                       |                   |         |       |   |       |        |      |   |         |         |       |     |       |      |    
|                                                                 |                                                                  |                                                       | Franchise loans   |         |       |  |       |        |      |  |         |         |       | 583 |       |      |     | 0.2 | 
|                                                                 |                                                                  |                                                       | Asset-based loans |         |       |  |       |        |      |  |         |         |       | 319 |       |      |     | 0.1 | 
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        
|                                                                 |                                                                  | Total other loans held-for-sale(2)                    |                   |         |      |   |       |        |     |   |         |         | 902   |     |       |      | 0.3 |    
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        
|                                                                 | Auto installment contracts and other loans held-for-sale, net(2) |                                                       |                   |        |       |   |       |       | %    |   |         | 75,923  |       |     |       | 23.1 | %  
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        
|                                                                 | Auto installment contracts held-for-investment                   |                                                       |                   | 105,120 |       |   |       | 16.6   | %    |   |         | 247,219 |       |     |       | 75.2 | %  
|                                                                 | Securitized auto installment contracts held-for-investment       |                                                       |                   | 520,387 |       |   |       | 82.1   |      |   |         |        |       |     |       |     |    
|                                                                 | Premiums, discounts, and deferred fees and costs, net            |                                                       |                   | 14,393  |       |   |       | 2.3    |      |   |         | 7,152   |       |     |       | 2.2  |    
|                                                                 | Allowance for credit losses                                      |                                                       |                   | (6,279  | )     |   |       | (1.0   | )    |   |         | (1,508  | )     |     |       | (0.5 | )  
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        
|                                                                 | Auto installment contracts held-for-investment, net              |                                                       |                   | 633,621 |       |   |       | 100.0  | %    |   |         | 252,863 |       |     |       | 76.9 | %  
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        
|Auto installment contracts and other loans receivable, net(1)(2) |                                                                  | $                                                     | 633,621           |         |       |   | 100.0 | %      |      | $ | 328,786 |         |       |     | 100.0 | %   
|                                                                 |                                                                  |                                                       |                   |         |       |   |       |        |      |   |         |        






|    |                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------
|(1) | Auto contracts do not include auto-related operating lease
    assets.                                     
|   
|(2) | Includes allowances for
    mark-to-market
    valuation reserves of $1.2 million at December 31,
    2004.







| |                          
| | -------------------------
| | Auto Contracts Receivable



36



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| |               
| | --------------
| | Credit Quality









37



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##### Table of Contents





| |                            
| | ---------------------------
| | Allowance for Credit Losses



|                                         |  |                        |        |   |      |   |       |  
|---------------------------------------- |  | ---------------------- | ------ | - | ---- | - | ----- | -
|                                         |  | At and For the Year    |       
|                                         |  | Ended December 31,     |       
|                                         |  |                        |       
|                                         |  | 2005                   |        |   | 2004 |  
|                                         |  |                        |        |   |      |  
|                                         |  | (Dollars in thousands) |       
|Balance at beginning of period           |  | $                      | 1,508  |   |      | $ |      |  
|Charge-offs                              |  |                        | (3,875 | ) |      |   | (222  | )
|Recoveries                               |  |                        | 699    |   |      |   | 118   |  
|                                         |  |                        |        |   |      |  
|Net charge-offs                          |  |                        | (3,176 | ) |      |   | (104  | )
|Provision for losses on loans and leases |  |                        | 7,947  |   |      |   | 1,612 |  
|                                         |  |                        |        |   |      |  
|Balance at end of period                 |  | $                      | 6,279  |   |      | $ | 1,508 |  
|                                         |  |                        |        |   |      |  





| |                                  
| | ---------------------------------
| | Other Loans and Real Estate Owned






Borrowings




|                             |  |                        |         |  |      |   |         | 
|---------------------------- |  | ---------------------- | ------- |  | ---- | - | ------- | 
|                             |  | At December 31,        |        
|                             |  |                        |        
|                             |  | 2005                   |         |  | 2004 |  
|                             |  |                        |         |  |      |  
|                             |  | (Dollars in thousands) |        
|Warehouse credit facility    |  | $                      | 99,727  |  |      | $ | 298,755 | 
|Securitization notes payable |  |                        | 521,568 |  |      |   |        | 
|Other borrowings             |  |                        |        |  |      |   | 1,895   | 
|                             |  |                        |         |  |      |  
|Total                        |  | $                      | 621,295 |  |      | $ | 300,650 | 
|                             |  |                        |         |  |      |  

Warehouse credit facility


38



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out-of




Securitization notes payable


Other borrowings





Liquidity and Capital Resources




39



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##### Table of Contents







1-for-10













Contractual Obligations






40



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|                                                                           |  |                        |         |           |        |   |         |           |           |   |           |  |  |         |         |  |  |   |         | 
|-------------------------------------------------------------------------- |  | ---------------------- | ------- | --------- | ------ | - | ------- | --------- | --------- | - | --------- |  |  | ------- | ------- |  |  | - | ------- | 
|                                                                           |  | Payments Due by Period |        
|                                                                           |  |                        |        
|                                                                           |  |                        |         | Less than |        |   |         |           | More than |  
|                                                                           |  | Total                  |         |           | 1 Year |   |         | 1-3 Years |           |   | 3-5 Years |  |  | 5 Years |        
|                                                                           |  |                        |         |           |        |   |         |           |           |   |           |  |  |         |        
|                                                                           |  | (Dollars in thousands) |        
|Warehouse credit facility                                                  |  | $                      | 99,727  |           |        | $ | 99,727  |           |           | $ |          |  |  | $       |        |  |  | $ |        | 
|Operating leases(1)                                                        |  |                        | 14,721  |           |        |   | 2,606   |           |           |   | 5,069     |  |  |         | 3,925   |  |  |   | 3,121   | 
|Bay View 2005-LJ-1, 2005-LJ-2, and 2005-3 auto receivable-backed
    notes |  |                        | 521,568 |           |        |   | 14,719  |           |           |   | 84,277    |  |  |         | 239,200 |  |  |   | 183,372 | 
|                                                                           |  |                        |         |           |        |   |         |           |           |   |           |  |  |         |        
|Total                                                                      |  | $                      | 636,016 |           |        | $ | 117,052 |           |           | $ | 89,346    |  |  | $       | 243,125 |  |  | $ | 186,493 | 
|                                                                           |  |                        |         |           |        |   |         |           |           |   |           |  |  |         |        






|    |                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These payments do not reflect $4.2 million in sublease
    rental income from existing sublease rental arrangements through
    the year 2011. Included in the table above are lease payments of
    $13.7 million related to the Companys liquidating
    activities.




Stock Repurchase Program







Impact of Inflation and Changing Prices









|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk

Asset/ Liability Management






| |                          
| | -------------------------
| | Fixed-rate Auto Contracts



41



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| |                    
| | -------------------
| | Net Interest Income





.




| |                          
| | -------------------------
| | Warehouse Credit Facility

out-of




42



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##### Table of Contents





|                                                         |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |   |  |   |      |   |  |   |         | 
|-------------------------------------------------------- | ------------------------------ | ---------------------- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - | ---- | - | ------- | ---------- |  | - | ---------- | - |  | - | ---- | - |  | - | ------- | 
|Years Ending December 31,                                |                                | 2006                   |   |         | 2007 |  |   | 2008    |   |  | 2009 |         |   | 2010 |   |         | Thereafter |  |   | Fair Value |  
|                                                         |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |  
|                                                         |                                | (Dollars in thousands) |  
|Assets:                                                  |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |   |  |   |      |   |  |   |        
|Retained interests in securitizations available-for-sale |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |   |  |   |      |   |  |   |        
|                                                         | Principal amounts              |                        | $ | 14,334  |      |  | $ | 5,773   |   |  | $    |        |   |      | $ |        |            |  | $ |           |   |  | $ |     |   |  | $ | 20,107  | 
|                                                         | Weighted-average yield         |                        |   | 8.48    | %    |  |   | 9.50    | % |  |      | 0.00    | % |      |   | 0.00    | %          |  |   | 0.00       | % |  |   | 0.00 | % |  |   |         | 
|Auto installment contracts held-for-investment, net      |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |   |  |   |      |   |  |   |        
|                                                         | Principal amounts              |                        | $ | 197,251 |      |  | $ | 175,203 |   |  | $    | 155,624 |   |      | $ | 105,543 |            |  | $ |           |   |  | $ |     |   |  | $ | 635,131 | 
|                                                         | Weighted-average yield         |                        |   | 7.43    | %    |  |   | 7.44    | % |  |      | 7.48    | % |      |   | 7.48    | %          |  |   | 0.00       | % |  |   | 0.00 | % |  |   |         | 
|                                                        
|Liabilities:                                            
|Warehouse credit facility                                |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |   |  |   |      |   |  |   |        
|                                                         | Principal amounts              |                        | $ | 99,727  |      |  | $ |        |   |  | $    |        |   |      | $ |        |            |  | $ |           |   |  | $ |     |   |  | $ | 99,727  | 
|                                                         | Weighted-average interest rate |                        |   | 4.92    | %    |  |   | 0.00    | % |  |      | 0.00    | % |      |   | 0.00    | %          |  |   | 0.00       | % |  |   | 0.00 | % |  |   |         | 
|Securitization notes payable                             |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |   |  |   |      |   |  |   |        
|                                                         | Principal amounts              |                        | $ | 162,923 |      |  | $ | 145,905 |   |  | $    | 129,485 |   |      | $ | 83,255  |            |  | $ |           |   |  | $ |     |   |  | $ | 518,270 | 
|                                                         | Weighted-average interest rate |                        |   | 4.34    | %    |  |   | 4.50    | % |  |      | 4.64    | % |      |   | 6.08    | %          |  |   | 0.00       | % |  |   | 0.00 | % |  |   |         | 
|Interest Rate Derivatives:(1)                            |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |   |  |   |      |   |  |   |        
|Interest rate swaps                                      |                                |                        |   |         |      |  |   |         |   |  |      |         |   |      |   |         |            |  |   |            |   |  |   |      |   |  |   |        
|                                                         | Notional amounts               |                        | $ | 50,000  |      |  | $ | 15,000  |   |  | $    |        |   |      | $ |        |            |  | $ |           |   |  | $ |     |   |  | $ | 997     | 
|                                                         | Average rate paid              |                        |   | 3.64    | %    |  |   | 3.79    | % |  |      | 0.00    | % |      |   | 0.00    | %          |  |   | 0.00       | % |  |   | 0.00 | % |  |   |         | 
|                                                         | Average rate received          |                        |   | 4.30    | %    |  |   | 4.26    | % |  |      | 0.00    | % |      |   | 0.00    | %          |  |   | 0.00       | % |  |   | 0.00 | % |  |   |         | 






|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes interest rate cap contracts acquired in connection with
    BVACs warehouse credit facility for the benefit of the
    Note Purchasers.

43



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|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

Bay View Capital Corporation and Subsidiaries


Consolidated Statements of Financial Condition


|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |   |         |         |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------- | ------- | ------- | ------------ | - | ------- | ------- | -
|                                                                                                                                                                      |                                                                                                                                                                                                       | December 31,           |         |         | December 31, |  
|                                                                                                                                                                      |                                                                                                                                                                                                       | 2005                   |         |         | 2004         |  
|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |  
|                                                                                                                                                                      |                                                                                                                                                                                                       | (Dollars in thousands) |        
|ASSETS                                                                                                                                                               
|Cash and cash equivalents                                                                                                                                             |                                                                                                                                                                                                       | $                      | 8,898   |         |              | $ | 4,447   |        
|Restricted cash                                                                                                                                                       |                                                                                                                                                                                                       |                        | 35,138  |         |              |   | 26,845  |        
|Retained interests in securitizations available-for-sale                                                                                                              |                                                                                                                                                                                                       |                        | 20,107  |         |              |   | 22,636  |        
|Auto installment contracts and loans held-for-sale:                                                                                                                   |                                                                                                                                                                                                       |                        |         |         |              |   |         |        
|                                                                                                                                                                      | Auto installment contracts                                                                                                                                                                            |                        |         |        |              |   |         | 75,021  |  
|                                                                                                                                                                      | Other loans                                                                                                                                                                                           |                        |         |        |              |   |         | 902     |  
|Auto installment contracts held-for-investment, net of allowance
    for credit losses of $0.7 million at December 31, 2005
    and $1.5 million at December 31, 2004 |                                                                                                                                                                                                       |                        | 106,822 |         |              |   | 252,863 |        
|Securitized auto installment contracts held-for-investment, net
    of allowance for credit losses of $5.6 million at
    December 31, 2005                           |                                                                                                                                                                                                       |                        | 526,799 |         |              |   |        |        
|Investment in operating lease assets, net                                                                                                                             |                                                                                                                                                                                                       |                        |        |         |              |   | 10,041  |        
|Real estate owned, net                                                                                                                                                |                                                                                                                                                                                                       |                        | 552     |         |              |   | 3,379   |        
|Premises and equipment, net                                                                                                                                           |                                                                                                                                                                                                       |                        | 536     |         |              |   | 733     |        
|Repossessed vehicles                                                                                                                                                  |                                                                                                                                                                                                       |                        | 542     |         |              |   | 439     |        
|Deferred income taxes, net                                                                                                                                            |                                                                                                                                                                                                       |                        |        |         |              |   | 21,168  |        
|Goodwill                                                                                                                                                              |                                                                                                                                                                                                       |                        | 1,846   |         |              |   | 1,846   |        
|Other assets                                                                                                                                                          |                                                                                                                                                                                                       |                        | 13,521  |         |              |   | 7,199   |        
|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |  
|Total assets                                                                                                                                                          |                                                                                                                                                                                                       | $                      | 714,761 |         |              | $ | 427,519 |        
|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |  
|                                                                                                                                                                     
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                 
|Borrowings:                                                                                                                                                           |                                                                                                                                                                                                       |                        |         |         |              |   |         |        
|                                                                                                                                                                      | Warehouse credit facility                                                                                                                                                                             |                        | $       | 99,727  |              |   | $       | 298,755 |  
|                                                                                                                                                                      | Securitization notes payable                                                                                                                                                                          |                        |         | 521,568 |              |   |         |        |  
|                                                                                                                                                                      | Other borrowings                                                                                                                                                                                      |                        |         |        |              |   |         | 1,895   |  
|Current income taxes, net                                                                                                                                             |                                                                                                                                                                                                       |                        | 4,048   |         |              |   | 4,191   |        
|Other liabilities                                                                                                                                                     |                                                                                                                                                                                                       |                        | 11,133  |         |              |   | 9,629   |        
|Liquidation reserve                                                                                                                                                   |                                                                                                                                                                                                       |                        | 7,770   |         |              |   | 8,856   |        
|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |  
|Total liabilities                                                                                                                                                     |                                                                                                                                                                                                       |                        | 644,246 |         |              |   | 323,326 |        
|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |  
|Stockholders equity:                                                                                                                                                 |                                                                                                                                                                                                       |                        |         |         |              |   |         |        
|                                                                                                                                                                      | Common stock ($.01 par value); authorized,
    80,000,000 shares; issued, 2005 
    6,614,516 shares; 2004  6,597,303 shares;
    outstanding, 2005  6,613,099 shares;
    2004  6,593,860 shares |                        |         | 66      |              |   |         | 66      |  
|                                                                                                                                                                      | Additional paid-in capital                                                                                                                                                                            |                        |         | 109,585 |              |   |         | 109,578 |  
|                                                                                                                                                                      | Accumulated deficit                                                                                                                                                                                   |                        |         | (39,035 | )            |   |         | (4,585  | )
|                                                                                                                                                                      | Treasury stock, at cost; 2005  1,417 shares;
    2004  3,443 shares                                                                                                                                 |                        |         | (252    | )            |   |         | (587    | )
|                                                                                                                                                                      | Accumulated other comprehensive gain (loss)                                                                                                                                                           |                        |         | 151     |              |   |         | (279    | )
|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |  
|Total stockholders equity                                                                                                                                            |                                                                                                                                                                                                       |                        | 70,515  |         |              |   | 104,193 |        
|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |  
|Total liabilities and stockholders equity                                                                                                                            |                                                                                                                                                                                                       | $                      | 714,761 |         |              | $ | 427,519 |        
|                                                                                                                                                                      |                                                                                                                                                                                                       |                        |         |         |              |  



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Bay View Capital Corporation and Subsidiaries


Consolidated Statements of Operations and Comprehensive
Loss


|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |   |   |        |       |  
|----------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | ------- | ------ | ----------------- | - | ------ | ----------------- | - | - | ------ | ----- | -
|                                                      |                                                                                                                                                                                                                                                           | For the Year                             |         |        | For the Year      |   |        | For the Three     |  
|                                                      |                                                                                                                                                                                                                                                           | Ended                                    |         |        | Ended             |   |        | Months Ended      |  
|                                                      |                                                                                                                                                                                                                                                           | December 31, 2005                        |         |        | December 31, 2004 |   |        | December 31, 2003 |  
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|                                                      |                                                                                                                                                                                                                                                           | (In thousands, except per share amounts) |        
|Interest income:                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |   |   |        |      
|                                                      | Interest on auto installment contracts and other loans                                                                                                                                                                                                    |                                          | $       | 36,549 |                   |   | $      | 19,700            |   |   | $      | 3,757 |  
|                                                      | Interest on retained interests in securitizations and other
    investments                                                                                                                                                                               |                                          |         | 3,704  |                   |   |        | 2,878             |   |   |        | 1,013 |  
|                                                      | Interest on mortgage-backed securities                                                                                                                                                                                                                    |                                          |         |       |                   |   |        | 31                |   |   |        | 166   |  
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|                                                      |                                                                                                                                                                                                                                                           |                                          | 40,253  |        |                   |   | 22,609 |                   |   |   | 4,936  |      
|Interest expense:                                     |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |   |   |        |      
|                                                      | Interest on warehouse credit facility and other short-term
    borrowings                                                                                                                                                                                 |                                          |         | 10,167 |                   |   |        | 7,488             |   |   |        | 742   |  
|                                                      | Interest on securitization notes payable                                                                                                                                                                                                                  |                                          |         | 12,437 |                   |   |        |                  |   |   |        |      |  
|                                                      | Other interest expense                                                                                                                                                                                                                                    |                                          |         | 13     |                   |   |        | 1,357             |   |   |        | 2,870 |  
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|                                                      |                                                                                                                                                                                                                                                           |                                          | 22,617  |        |                   |   | 8,845  |                   |   |   | 3,612  |      
|Net interest income                                   |                                                                                                                                                                                                                                                           |                                          | 17,636  |        |                   |   | 13,764 |                   |   |   | 1,324  |      
|Provision for credit losses                           |                                                                                                                                                                                                                                                           |                                          | 7,947   |        |                   |   | 1,612  |                   |   |   |       |      
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|Net interest income after provision for credit losses |                                                                                                                                                                                                                                                           |                                          | 9,689   |        |                   |   | 12,152 |                   |   |   | 1,324  |      
|Noninterest income:                                   |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |   |   |        |      
|                                                      | Leasing income                                                                                                                                                                                                                                            |                                          |         | 4,800  |                   |   |        | 12,941            |   |   |        | 6,907 |  
|                                                      | Loan servicing income                                                                                                                                                                                                                                     |                                          |         | 1,759  |                   |   |        | 3,143             |   |   |        | 1,132 |  
|                                                      | Loan fees                                                                                                                                                                                                                                                 |                                          |         | 907    |                   |   |        | 1,117             |   |   |        | 213   |  
|                                                      | Gain (loss) on derivative instruments, net                                                                                                                                                                                                                |                                          |         | 1,219  |                   |   |        | 1,432             |   |   |        | (176  | )
|                                                      | Gain (loss) on auto installment contracts and other loans
    held-for-sale and retained interests in securitizations, net                                                                                                                                |                                          |         | (2,291 | )                 |   |        | (2,844            | ) |   |        | 919   |  
|                                                      | Other, net                                                                                                                                                                                                                                                |                                          |         | 608    |                   |   |        | 1,250             |   |   |        | 1,340 |  
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|                                                      |                                                                                                                                                                                                                                                           |                                          | 7,002   |        |                   |   | 17,039 |                   |   |   | 10,335 |      
|Noninterest expense:                                  |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |   |   |        |      
|                                                      | General and administrative:                                                                                                                                                                                                                               |                                          |         |        |                   |   |        |                   |   |   |        |       |  
|                                                      | Compensation and employee benefits                                                                                                                                                                                                                        |                                          |         | 10,323 |                   |   |        | 12,063            |   |   |        | 2,286 |  
|                                                      | Occupancy and equipment                                                                                                                                                                                                                                   |                                          |         | 1,595  |                   |   |        | 2,445             |   |   |        | 739   |  
|                                                      | Professional and legal services                                                                                                                                                                                                                           |                                          |         | 11,538 |                   |   |        | 5,666             |   |   |        | 1,200 |  
|                                                      | Data processing                                                                                                                                                                                                                                           |                                          |         | 1,082  |                   |   |        | 1,170             |   |   |        | 291   |  
|                                                      | Postage, telephone and travel                                                                                                                                                                                                                             |                                          |         | 1,547  |                   |   |        | 1,840             |   |   |        | 502   |  
|                                                      | Other, net                                                                                                                                                                                                                                                |                                          |         | 1,310  |                   |   |        | 2,027             |   |   |        | 729   |  
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|                                                      |                                                                                                                                                                                                                                                           |                                          | 27,395  |        |                   |   | 25,211 |                   |   |   | 5,747  |      
|                                                      | Leasing expense                                                                                                                                                                                                                                           |                                          |         | 739    |                   |   |        | 9,163             |   |   |        | 5,938 |  
|                                                      | Real estate owned, net                                                                                                                                                                                                                                    |                                          |         | 485    |                   |   |        | 1,255             |   |   |        | 831   |  
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|                                                      |                                                                                                                                                                                                                                                           |                                          | 28,619  |        |                   |   | 35,629 |                   |   |   | 12,516 |      
|Loss before income tax expense (benefit)              |                                                                                                                                                                                                                                                           |                                          | (11,928 | )      |                   |   | (6,438 | )                 |   |   | (857   | )    
|Income tax expense (benefit)                          |                                                                                                                                                                                                                                                           |                                          | 22,522  |        |                   |   | (2,526 | )                 |   |   | (184   | )    
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|Net loss                                              |                                                                                                                                                                                                                                                           | $                                        | (34,450 | )      |                   | $ | (3,912 | )                 |   | $ | (673   | )    
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|Basic loss per share                                  |                                                                                                                                                                                                                                                           | $                                        | (5.22   | )      |                   | $ | (0.59  | )                 |   | $ | (0.10  | )    
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|Diluted loss per share                                |                                                                                                                                                                                                                                                           | $                                        | (5.22   | )      |                   | $ | (0.59  | )                 |   | $ | (0.10  | )    
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|Weighted-average basic shares outstanding             |                                                                                                                                                                                                                                                           |                                          | 6,596   |        |                   |   | 6,585  |                   |   |   | 6,419  |      
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|Weighted-average diluted shares outstanding           |                                                                                                                                                                                                                                                           |                                          | 6,596   |        |                   |   | 6,585  |                   |   |   | 6,419  |      
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|Net loss                                              |                                                                                                                                                                                                                                                           | $                                        | (34,450 | )      |                   | $ | (3,912 | )                 |   | $ | (673   | )    
|Other comprehensive income (loss) net of tax:         |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |   |   |        |      
|                                                      | Change in unrealized gain (loss) on securities
    available-for-sale, net of tax expense (benefit) of $282, ($144)
    and ($35) for the years ended December 31, 2005 and 2004
    and the three-month period ended December 31, 2003,
    respectively |                                          |         | 430    |                   |   |        | (225              | ) |   |        | (54   | )
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  
|Comprehensive loss                                    |                                                                                                                                                                                                                                                           | $                                        | (34,020 | )      |                   | $ | (4,137 | )                 |   | $ | (727   | )    
|                                                      |                                                                                                                                                                                                                                                           |                                          |         |        |                   |   |        |                   |  



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Bay View Capital Corporation and Subsidiaries


Consolidated Statement of Changes in Net Assets in
Liquidation


|                                                      |  |                        |         |  
|----------------------------------------------------- |  | ---------------------- | ------- | -
|                                                      |  | 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            |  |                        | 4,088   |  
|                                                      |  |                        |        
|Net assets in liquidation at end of period            |  | $                      | 409,814 |  
|                                                      |  |                        |        



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Bay View Capital Corporation and Subsidiaries


Consolidated Statements of Stockholders Equity


|                                                                                                                 |  |                        |       |  |        |            |      |         |  |   |             |             |       |          |         |       |               |   |      |               |  |   |      |   |  |   |         |  
|---------------------------------------------------------------------------------------------------------------- |  | ---------------------- | ----- |  | ------ | ---------- | ---- | ------- |  | - | ----------- | ----------- | ----- | -------- | ------- | ----- | ------------- | - | ---- | ------------- |  | - | ---- | - |  | - | ------- | -
|                                                                                                                 |  |                        |       |  |        |            |      |         |  |   |             | Accumulated |       |          |        
|                                                                                                                 |  |                        |       |  |        | Additional |      |         |  |   |             |             | Other |          |         | Total |              
|                                                                                                                 |  | Number of              |       |  | Common |            |      | Paid-In |  |   | Accumulated |             |       | Treasury |         |       | Comprehensive |   |      | Stockholders | 
|                                                                                                                 |  | Shares Issued          |       |  | Stock  |            |      | Capital |  |   | Deficit     |             |       | Stock    |         |       | Gain (Loss)   |   |      | Equity        | 
|                                                                                                                 |  |                        |       |  |        |            |      |         |  |   |             |             |       |          |         |       |               |   |      |               | 
|                                                                                                                 |  | (Amounts in thousands) |      
|Balance at October 1, 2003                                                                                       |  |                        | 6,377 |  |        |            | 638  |         |  |   | 146,727     |             |       |          |        |       |               |   | (701 | )             |  |   |     |   |  |   | 146,664 |  
|Adjustment related to re-adoption of going concern basis
    accounting                                          |  |                        |      |  |        |            |     |         |  |   | 1,095       |             |       |          |        |       |               |   |     |               |  |   |     |   |  |   | 1,095   |  
|Exercise of stock options, including tax benefits                                                                |  |                        | 197   |  |        |            | 20   |         |  |   | 8,714       |             |       |          |        |       |               |   |     |               |  |   |     |   |  |   | 8,734   |  
|Exercise of stock warrants                                                                                       |  |                        | 4     |  |        |            |     |         |  |   | 166         |             |       |          |        |       |               |   |     |               |  |   |     |   |  |   | 166     |  
|Distribution of restricted shares                                                                                |  |                        | 1     |  |        |            |     |         |  |   | (114        | )           |       |          |        |       |               |   | 114  |               |  |   |     |   |  |   |        |  
|Net loss                                                                                                         |  |                        |      |  |        |            |     |         |  |   |            |             |       |          | (673    | )     |               |   |     |               |  |   |     |   |  |   | (673    | )
|Unrealized loss on retained interests in securitizations and
    other securities available-for-sale, net of tax |  |                        |      |  |        |            |     |         |  |   |            |             |       |          |        |       |               |   |     |               |  |   | (54  | ) |  |   | (54     | )
|                                                                                                                 |  |                        |       |  |        |            |      |         |  |   |             |             |       |          |         |       |               |   |      |               | 
|Balance at December 31, 2003                                                                                     |  |                        | 6,579 |  |        |            | 658  |         |  |   | 156,588     |             |       |          | (673    | )     |               |   | (587 | )             |  |   | (54  | ) |  |   | 155,932 |  
|Exercise of stock warrants                                                                                       |  |                        | 10    |  |        |            |     |         |  |   | 26          |             |       |          |        |       |               |   |     |               |  |   |     |   |  |   | 26      |  
|Distribution of directors stock-in-lieu of cash plan shares                                                     |  |                        | 8     |  |        |            | 1    |         |  |   | 181         |             |       |          |        |       |               |   |     |               |  |   |     |   |  |   | 182     |  
|Reclassification of common stock par value to additional
    paid-in-capital due to reverse stock split          |  |                        |      |  |        |            | (593 | )       |  |   | 593         |             |       |          |        |       |               |   |     |               |  |   |     |   |  |   |        |  
|Redemption of fractional shares                                                                                  |  |                        |      |  |        |            |     |         |  |   | (12         | )           |       |          |        |       |               |   |     |               |  |   |     |   |  |   | (12     | )
|Cash distributions                                                                                               |  |                        |      |  |        |            |     |         |  |   | (47,798     | )           |       |          |        |       |               |   |     |               |  |   |     |   |  |   | (47,798 | )
|Net loss                                                                                                         |  |                        |      |  |        |            |     |         |  |   |            |             |       |          | (3,912  | )     |               |   |     |               |  |   |     |   |  |   | (3,912  | )
|Unrealized loss on retained interests in securitizations and
    other securities available-for-sale, net of tax |  |                        |      |  |        |            |     |         |  |   |            |             |       |          |        |       |               |   |     |               |  |   | (225 | ) |  |   | (225    | )
|                                                                                                                 |  |                        |       |  |        |            |      |         |  |   |             |             |       |          |         |       |               |   |      |               | 
|Balance at December 31, 2004                                                                                     |  |                        | 6,597 |  |        |            | 66   |         |  |   | 109,578     |             |       |          | (4,585  | )     |               |   | (587 | )             |  |   | (279 | ) |  |   | 104,193 |  
|Distribution of directors retirement plan shares(1)                                                             |  |                        |      |  |        |            |     |         |  |   | (335        | )           |       |          |        |       |               |   | 335  |               |  |   |     |   |  |   |        |  
|Exercise of stock options                                                                                        |  |                        | 17    |  |        |            |     |         |  |   | 244         |             |       |          |        |       |               |   |     |               |  |   |     |   |  |   | 244     |  
|Exercise of stock warrants                                                                                       |  |                        | 1     |  |        |            |     |         |  |   | (1          | )           |       |          |        |       |               |   |     |               |  |   |     |   |  |   | (1      | )
|Stock-based compensation expense  stock options                                                                 |  |                        |      |  |        |            |     |         |  |   | 99          |             |       |          |        |       |               |   |     |               |  |   |     |   |  |   | 99      |  
|Net loss                                                                                                         |  |                        |      |  |        |            |     |         |  |   |            |             |       |          | (34,450 | )     |               |   |     |               |  |   |     |   |  |   | (34,450 | )
|Unrealized gain on retained interests in securitizations and
    other securities available-for-sale, net of tax |  |                        |      |  |        |            |     |         |  |   |            |             |       |          |        |       |               |   |     |               |  |   | 430  |   |  |   | 430     |  
|                                                                                                                 |  |                        |       |  |        |            |      |         |  |   |             |             |       |          |         |       |               |   |      |               | 
|Balance at December 31, 2005                                                                                     |  |                        | 6,615 |  |        | $          | 66   |         |  | $ | 109,585     |             |       | $        | (39,035 | )     |               | $ | (252 | )             |  | $ | 151  |   |  | $ | 70,515  |  
|                                                                                                                 |  |                        |       |  |        |            |      |         |  |   |             |             |       |          |         |       |               |   |      |               | 






|    |                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects distribution of the Companys common stock to
    retired participants in a retirement plan for non-employee
    members of its Board of Directors, which was frozen in 1996,
    eliminating future obligations for the Company. Such shares were
    repurchased in the market and held in treasury by the plan
    trustee.



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Bay View Capital Corporation and Subsidiaries


Consolidated Statements of Cash Flows


|                                                                                                                                                   |                                                                                                                            |                                 |          |          |      |   |          |         |   |   |         |          |  
|-------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | -------- | -------- | ---- | - | -------- | ------- | - | - | ------- | -------- | -
|                                                                                                                                                   |                                                                                                                            | For the Year Ended December 31, |         
|                                                                                                                                                   |                                                                                                                            |                                 |         
|                                                                                                                                                   |                                                                                                                            | 2005                            |          |          | 2004 |   |          | 2003    |  
|                                                                                                                                                   |                                                                                                                            |                                 |          |          |      |   |          |         |  
|                                                                                                                                                   |                                                                                                                            | (Dollars in thousands)          |         
|CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                               |                                                                                                                            |                                 |          |          |      |   |          |         |   |   |         |         
|Net loss and certain changes in net assets in liquidation                                                                                          |                                                                                                                            | $                               | (34,450  | )        |      | $ | (3,912   | )       |   | $ | (5,011  | )       
|Adjustments to reconcile net loss and certain changes in net
    assets in liquidation to net cash provided by (used in)
    operating activities: |                                                                                                                            |                                 |          |          |      |   |          |         |   |   |         |         
|                                                                                                                                                   | Net increase in auto installment contracts and other loans
    held-for-sale resulting from purchases, net of repayments   |                                 |          | (276,513 | )    |   |          | (39,372 | ) |   |         | (204,478 | )
|                                                                                                                                                   | Proceeds from securitizations and/or sales of auto installment
    contracts and loans held-for-sale                       |                                 |          | 6,493    |      |   |          | 33,823  |   |   |         | 340,808  |  
|                                                                                                                                                   | Provision for credit losses                                                                                                |                                 |          | 7,947    |      |   |          | 1,612   |   |   |         |         |  
|                                                                                                                                                   | Depreciation and amortization of premises and equipment                                                                    |                                 |          | 354      |      |   |          | 294     |   |   |         | 539      |  
|                                                                                                                                                   | Depreciation and amortization of investment in operating lease
    assets                                                  |                                 |          | 817      |      |   |          | 8,821   |   |   |         | 28,487   |  
|                                                                                                                                                   | Accretion of retained interests in securitizations                                                                         |                                 |          | (1,959   | )    |   |          | (2,345  | ) |   |         | (2,822   | )
|                                                                                                                                                   | Amortization of premium and accretion of discount, net                                                                     |                                 |          | 4,929    |      |   |          | 582     |   |   |         | (6,568   | )
|                                                                                                                                                   | Provision for deferred income taxes                                                                                        |                                 |          | 20,886   |      |   |          | (5,043  | ) |   |         | 109      |  
|                                                                                                                                                   | (Gain) loss on auto installment contracts and other loans
    held-for-sale and retained interests in securitizations, net |                                 |          | 2,291    |      |   |          | 2,844   |   |   |         | (842     | )
|                                                                                                                                                   | Change in fair value of derivative instruments                                                                             |                                 |          | (1,219   | )    |   |          | (1,432  | ) |   |         | 1,624    |  
|                                                                                                                                                   | (Increase) decrease in restricted cash                                                                                     |                                 |          | (8,293   | )    |   |          | 5,395   |   |   |         | (16,699  | )
|                                                                                                                                                   | (Increase) decrease in other assets                                                                                        |                                 |          | (4,819   | )    |   |          | 5,985   |   |   |         | 8,390    |  
|                                                                                                                                                   | Increase (decrease) in other liabilities                                                                                   |                                 |          | 1,245    |      |   |          | (5,731  | ) |   |         | (25,859  | )
|                                                                                                                                                   | Decrease in reserve for estimated costs during the period of
    liquidation                                               |                                 |          | (1,086   | )    |   |          | (2,770  | ) |   |         | (28,485  | )
|                                                                                                                                                   | Adjustment for liquidation basis of accounting                                                                             |                                 |          |         |      |   |          |        |   |   |         | 5,995    |  
|                                                                                                                                                   | Adjustment to readopt going concern basis of accounting                                                                    |                                 |          |         |      |   |          |        |   |   |         | 1,095    |  
|                                                                                                                                                   | Other, net                                                                                                                 |                                 |          | (2,636   | )    |   |          | 7,074   |   |   |         | 1,571    |  
|                                                                                                                                                   |                                                                                                                            |                                 |          |          |      |   |          |         |  
|Net cash provided by (used in) operating activities                                                                                                |                                                                                                                            |                                 | (286,013 | )        |      |   | 5,825    |         |   |   | 97,854  |         
|                                                                                                                                                   |                                                                                                                            |                                 |          |          |      |   |          |         |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                                                                                               |                                                                                                                            |                                 |          |          |      |   |          |         |   |   |         |         
|Net increase in auto installment contracts and other loans
    held-for-investment resulting from purchases, net of repayments                     |                                                                                                                            |                                 | (47,535  | )        |      |   | (151,304 | )       |   |   |        |         
|Decrease in investment in operating lease assets                                                                                                   |                                                                                                                            |                                 | 9,303    |          |      |   | 47,453   |         |   |   | 85,475  |         
|Purchases of investment securities                                                                                                                 |                                                                                                                            |                                 |         |          |      |   |         |         |   |   | (9,485  | )       
|Proceeds from principal repayments on mortgage-backed securities                                                                                   |                                                                                                                            |                                 |         |          |      |   | 590      |         |   |   | 13,236  |         
|Proceeds from principal payments on retained interests in
    securitizations and other investment securities                                      |                                                                                                                            |                                 | 4,963    |          |      |   | 7,876    |         |   |   | 14,314  |         
|Proceeds from sales of mortgage-backed securities
    available-for-sale                                                                           |                                                                                                                            |                                 |         |          |      |   | 5,632    |         |   |   | 12,523  |         
|Proceeds from sales of investment securities available-for-sale                                                                                    |                                                                                                                            |                                 |         |          |      |   |         |         |   |   | 2,735   |         
|Proceeds from retained interests in securitizations                                                                                                |                                                                                                                            |                                 |         |          |      |   |         |         |   |   | 4,380   |         
|Proceeds from sales of real estate owned                                                                                                           |                                                                                                                            |                                 | 2,375    |          |      |   | 690      |         |   |   | 2,702   |         
|Additions to premises and equipment, net                                                                                                           |                                                                                                                            |                                 | (157     | )        |      |   | (650     | )       |   |   | (152    | )       
|Decrease in investment in stock of the Federal Home
    Loan Bank of San Francisco                                                                 |                                                                                                                            |                                 |         |          |      |   |         |         |   |   | 16,075  |         
|Decrease in investment in stock of the Federal Reserve Bank                                                                                        |                                                                                                                            |                                 |         |          |      |   |         |         |   |   | 13,659  |         
|                                                                                                                                                   |                                                                                                                            |                                 |          |          |      |   |          |         |  
|Net cash provided by (used in) investing activities                                                                                                |                                                                                                                            |                                 | (31,051  | )        |      |   | (89,713  | )       |   |   | 155,462 |         
|                                                                                                                                                   |                                                                                                                            |                                 |          |          |      |   |          |         |  



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Bay View Capital Corporation and Subsidiaries


Consolidated Statements of Cash
Flows  (continued)


|                                                                 |                                                                                             |                                 |          |         |      |   |          |         |  |   |          |        | 
|---------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ------------------------------- | -------- | ------- | ---- | - | -------- | ------- |  | - | -------- | ------ | 
|                                                                 |                                                                                             | For the Year Ended December 31, |         
|                                                                 |                                                                                             |                                 |         
|                                                                 |                                                                                             | 2005                            |          |         | 2004 |   |          | 2003    | 
|                                                                 |                                                                                             |                                 |          |         |      |   |          |         | 
|                                                                 |                                                                                             | (Dollars in thousands)          |         
|CASH FLOWS FROM FINANCING ACTIVITIES                             |                                                                                             |                                 |          |         |      |   |          |         |  |   |          |       
|Net decrease in deposits                                         |                                                                                             |                                 |         |         |      |   |         |         |  |   | (224,189 | )     
|Proceeds from warehouse credit facility                          |                                                                                             |                                 | 756,764  |         |      |   | 275,484  |         |  |   | 160,054  |       
|Repayment of warehouse credit facility                           |                                                                                             |                                 | (955,792 | )       |      |   | (114,950 | )       |  |   | (21,833  | )     
|Proceeds from issuance of securitization notes payable           |                                                                                             |                                 | 638,858  |         |      |   |         |         |  |   |         |       
|Repayment of securitization notes payable                        |                                                                                             |                                 | (116,663 | )       |      |   |         |         |  |   |         |       
|Net decrease in other borrowings                                 |                                                                                             |                                 | (1,895   | )       |      |   | (14,160  | )       |  |   | (44,614  | )     
|Redemption of Junior Subordinated Deferrable Interest Debentures |                                                                                             |                                 |         |         |      |   | (22,000  | )       |  |   | (68,000  | )     
|Proceeds from issuance of common stock                           |                                                                                             |                                 | 243      |         |      |   | 196      |         |  |   | 12,225   |       
|Cash distributions paid to common stockholders                   |                                                                                             |                                 |         |         |      |   | (47,798  | )       |  |   | (263,150 | )     
|                                                                 |                                                                                             |                                 |          |         |      |   |          |         | 
|Net cash provided by (used in) financing activities              |                                                                                             |                                 | 321,515  |         |      |   | 76,772   |         |  |   | (449,507 | )     
|                                                                 |                                                                                             |                                 |          |         |      |   |          |         | 
|Net increase (decrease) in cash and cash equivalents             |                                                                                             |                                 | 4,451    |         |      |   | (7,116   | )       |  |   | (196,191 | )     
|Cash and cash equivalents at beginning of year                   |                                                                                             |                                 | 4,447    |         |      |   | 11,563   |         |  |   | 207,754  |       
|                                                                 |                                                                                             |                                 |          |         |      |   |          |         | 
|Cash and cash equivalents at end of year                         |                                                                                             | $                               | 8,898    |         |      | $ | 4,447    |         |  | $ | 11,563   |       
|                                                                 |                                                                                             |                                 |          |         |      |   |          |         | 
|Cash paid during the year for:                                   |                                                                                             |                                 |          |         |      |   |          |         |  |   |          |       
|                                                                 | Interest                                                                                    |                                 | $        | 22,951  |      |   | $        | 8,552   |  |   | $        | 13,013 | 
|                                                                 | Income taxes                                                                                |                                 | $        | 1,778   |      |   | $        | 449     |  |   | $        | 13,534 | 
|Supplemental non-cash investing and financing activities:        |                                                                                             |                                 |          |         |      |   |          |         |  |   |          |       
|                                                                 | Auto installment contracts transferred from held-for-sale to
    held-for-investment        |                                 | $        | 344,312 |      |   | $        | 103,067 |  |   | $        |       | 
|                                                                 | Auto installment contracts securitized and transferred to
    securities available-for-sale |                                 | $        |        |      |   | $        |        |  |   | $        | 9,485  | 
|                                                                 | Loans transferred to real estate owned                                                      |                                 | $        |        |      |   | $        |        |  |   | $        | 6,970  | 
|                                                                 | Non-cash stock-based compensation expense                                                   |                                 | $        | 99      |      |   | $        |        |  |   | $        |       | 



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial Statements


December 31, 2005




|        |                      
|------- | ---------------------
|Note 1. | Basis of Presentation







1-for-10




| |                                              
| | ---------------------------------------------
| | Plan of Dissolution and Stockholder Liquidity





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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




mark-to


Plan of Partial
Liquidation






















51



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|        |                         
|------- | ------------------------
|Note 2. | Proposed Merger and Sale



| |                                       
| | --------------------------------------
| | Definitive Agreement to Merge with GLB







| |                                         
| | ----------------------------------------
| | Definitive Agreement to Sell BVAC to AFS





|        |                                           
|------- | ------------------------------------------
|Note 3. | Summary of Significant Accounting Policies

Going Concern Basis






| |                     
| | --------------------
| | Nature of Operations





| |                 
| | ----------------
| | Use of Estimates



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##### Table of Contents



Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






| |                          
| | -------------------------
| | Cash and Cash Equivalents







| |                
| | ---------------
| | Restricted Cash





| |           
| | ----------
| | Securities

held-to




| |                 
| | ----------------
| | Loans Receivable



Auto Contracts Receivable








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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)








Other Loans Receivable








| |                                                                          
| | -------------------------------------------------------------------------
| | Securitization Transactions and Retained Interests in
    Securitizations





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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)












|                                             |  |                
|-------------------------------------------- |  | ---------------
|Weighted-average discount rate               |  | 10.0%          
|Range of projected annual credit losses, net |  | 1.45% - 1.65%  
|Range of projected cumulative credit losses  |  | 2.31% - 2.44%  
|Prepayment speed                             |  | 1.35 - 1.50 ABS





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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




| |                            
| | ---------------------------
| | Allowance for Credit Losses



90-day






| |                                     
| | ------------------------------------
| | Investment in Operating Lease Assets



recorded-to




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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


experience-to


experience-to experience-to






| |                  
| | -----------------
| | Real Estate Owned





| |                       
| | ----------------------
| | Premises and Equipment





| |                  
| | -----------------
| | Intangible Assets





| |             
| | ------------
| | Income Taxes



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






| |                       
| | ----------------------
| | Derivative Instruments









58



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




| |                         
| | ------------------------
| | Stock-Based Compensation









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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                                                                                             |             |                                                  |         |       |                    |               |        |              |   |   |      |       |  
|-------------------------------------------------------------------------------------------- | ----------- | ------------------------------------------------ | ------- | ----- | ------------------ | ------------- | ------ | ------------ | - | - | ---- | ----- | -
|                                                                                             |             |                                                  |         |       |                    | For the Three |       
|                                                                                             |             |                                                  |         |       |                    | Months Ended  |       
|                                                                                             |             | For the Year Ended                               |         |       | For the Year Ended |               |        | December 31, |  
|                                                                                             |             | December 31, 2005                                |         |       | December 31, 2004  |               |        | 2003         |  
|                                                                                             |             |                                                  |         |       |                    |               |        |              |  
|                                                                                             |             | (Dollars in thousands, except per share amounts) |        
|Net loss as reported in Consolidated Statements of Operations
    and Comprehensive Loss     |             | $                                                | (34,450 | )     |                    | $             | (3,912 | )            |   | $ | (673 | )    
|Stock-based employee compensation included in net loss as
    reported                       |             |                                                  | 99      |       |                    |               |       |              |   |   |     |      
|Stock-based employee compensation expense determined under fair
    value method, net of tax |             |                                                  | (189    | )     |                    |               | (37    | )            |   |   |     |      
|                                                                                             |             |                                                  |         |       |                    |               |        |              |  
|Pro forma net loss, after stock-based employee compensation
    expense                      |             | $                                                | (34,540 | )     |                    | $             | (3,949 | )            |   | $ | (673 | )    
|                                                                                             |             |                                                  |         |       |                    |               |        |              |  
|Net loss per share  basic:                                                                  |             |                                                  |         |       |                    |               |        |              |   |   |      |      
|                                                                                             | As reported |                                                  | $       | (5.22 | )                  |               | $      | (0.59        | ) |   | $    | (0.10 | )
|                                                                                             | Pro forma   |                                                  | $       | (5.24 | )                  |               | $      | (0.60        | ) |   | $    | (0.10 | )
|Net loss per share  diluted:                                                                |             |                                                  |         |       |                    |               |        |              |   |   |      |      
|                                                                                             | As reported |                                                  | $       | (5.22 | )                  |               | $      | (0.59        | ) |   | $    | (0.10 | )
|                                                                                             | Pro forma   |                                                  | $       | (5.24 | )                  |               | $      | (0.60        | ) |   | $    | (0.10 | )



|                                        |  |              |      |  
|--------------------------------------- |  | ------------ | ---- | -
|                                        |  | For the Year |     
|                                        |  | Ended        |     
|                                        |  | December 31, |     
|                                        |  | 2004         |     
|                                        |  |              |     
|Dividend yield                          |  |              |     | %
|Expected volatility of our common stock |  |              | 85   | %
|Expected risk-free interest rate(1)     |  |              | 3.25 | %
|Expected life of options in years       |  |              | 3.59 |  






|    |                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------
|(1) | The expected risk-free interest rate was calculated using a term
    commensurate with the expected life of the options.



| |                                                            
| | -----------------------------------------------------------
| | Accounting Changes and Recent Accounting
    Pronouncements



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






03-01


94-6 94-6 94-6




| |                  
| | -----------------
| | Reclassifications



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


Liquidation Basis






| |                 
| | ----------------
| | Use of Estimates

mark-to




| |           
| | ----------
| | Securities





| |                 
| | ----------------
| | Loans and Leases





| |                                    
| | -----------------------------------
| | Allowance for Loan and Lease Losses

mark-to




| |                  
| | -----------------
| | Real Estate Owned



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




| |                       
| | ----------------------
| | Premises and Equipment





| |                  
| | -----------------
| | Intangible Assets





| |                                                                 
| | ----------------------------------------------------------------
| | Reserve for Estimated Costs during the Period of
    Liquidation





|        |               
|------- | --------------
|Note 4. | Loss Per Share





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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                                            |  |                                          |         |               |                   |   |        |      |  |   |       |  
|------------------------------------------- |  | ---------------------------------------- | ------- | ------------- | ----------------- | - | ------ | ---- |  | - | ----- | -
|                                            |  |                                          |         | For the Three |                  
|                                            |  | For the Year Ended                       |         |               | Months Ended      |  
|                                            |  |                                          |         |               | December 31,      |  
|                                            |  | December 31, 2005                        |         |               | December 31, 2004 |   |        | 2003 | 
|                                            |  |                                          |         |               |                   |   |        |      | 
|                                            |  | (In thousands, except per share amounts) |        
|Net loss                                    |  | $                                        | (34,450 | )             |                   | $ | (3,912 | )    |  | $ | (673  | )
|                                            |  |                                          |         |               |                   |   |        |      | 
|Weighted-average basic shares outstanding   |  |                                          | 6,596   |               |                   |   | 6,585  |      |  |   | 6,419 |  
|Add: Dilutive potential common shares       |  |                                          |        |               |                   |   |       |      |  |   |      |  
|                                            |  |                                          |         |               |                   |   |        |      | 
|Weighted-average diluted shares outstanding |  |                                          | 6,596   |               |                   |   | 6,585  |      |  |   | 6,419 |  
|                                            |  |                                          |         |               |                   |   |        |      | 
|Basic loss per share                        |  | $                                        | (5.22   | )             |                   | $ | (0.59  | )    |  | $ | (0.10 | )
|Diluted loss per share                      |  | $                                        | (5.22   | )             |                   | $ | (0.59  | )    |  | $ | (0.10 | )



|        |                                      
|------- | -------------------------------------
|Note 5. | Retained Interests in Securitizations





|          |  |                                      |        |  |          |   |        |           |  |          |             |  |           |                 |      |        |         |   |     |  |  |   |        | 
|--------- |  | ------------------------------------ | ------ |  | -------- | - | ------ | --------- |  | -------- | ----------- |  | --------- | --------------- | ---- | ------ | ------- | - | --- |  |  | - | ------ | 
|          |  | For the Year Ended December 31, 2005 |       
|          |  |                                      |       
|          |  | Beginning                            |        |  | Cash     |   |        |           |  | Realized |             |  | Change in |                 |      | Ending |        
|          |  | Balance                              |        |  | Received |   |        | Accretion |  |          | Gain (Loss) |  |           | Unrealized Gain |      |        | Balance |  
|          |  |                                      |        |  |          |   |        |           |  |          |             |  |           |                 |      |        |         |  
|          |  | (Dollars in thousands)               |       
|2002-LJ-1 |  | $                                    | 15,622 |  |          | $ | (3,543 | )         |  | $        | 1,417       |  |           | $               |     |        |         | $ | 532 |  |  | $ | 14,028 | 
|2003-LJ-1 |  |                                      | 7,014  |  |          |   | (1,421 | )         |  |          | 528         |  |           |                 | (222 | )      |         |   | 180 |  |  |   | 6,079  | 
|          |  |                                      |        |  |          |   |        |           |  |          |             |  |           |                 |      |        |         |  
|Totals    |  | $                                    | 22,636 |  |          | $ | (4,964 | )         |  | $        | 1,945       |  |           | $               | (222 | )      |         | $ | 712 |  |  | $ | 20,107 | 
|          |  |                                      |        |  |          |   |        |           |  |          |             |  |           |                 |      |        |         |  

|          |  |                                      |        |  |          |   |        |           |  |          |             |           |                 |   |        |         |  |   |      |   |  |   |        | 
|--------- |  | ------------------------------------ | ------ |  | -------- | - | ------ | --------- |  | -------- | ----------- | --------- | --------------- | - | ------ | ------- |  | - | ---- | - |  | - | ------ | 
|          |  | For the Year Ended December 31, 2004 |       
|          |  |                                      |       
|          |  | Beginning                            |        |  | Cash     |   |        |           |  | Realized |             | Change in |                 |   | Ending |        
|          |  | Balance                              |        |  | Received |   |        | Accretion |  |          | Gain (Loss) |           | Unrealized Loss |   |        | Balance | 
|          |  |                                      |        |  |          |   |        |           |  |          |             |           |                 |   |        |         | 
|          |  | (Dollars in thousands)               |       
|2002-LJ-1 |  | $                                    | 18,744 |  |          | $ | (4,536 | )         |  | $        | 1,563       |           |                 | $ |       |         |  | $ | (149 | ) |  | $ | 15,622 | 
|2003-LJ-1 |  |                                      | 9,846  |  |          |   | (3,340 | )         |  |          | 782         |           |                 |   |       |         |  |   | (274 | ) |  |   | 7,014  | 
|          |  |                                      |        |  |          |   |        |           |  |          |             |           |                 |   |        |         |  |  
|Totals    |  | $                                    | 28,590 |  |          | $ | (7,876 | )         |  | $        | 2,345       |           |                 | $ |       |         |  | $ | (423 | ) |  | $ | 22,636 | 
|          |  |                                      |        |  |          |   |        |           |  |          |             |           |                 |   |        |         |  |  

64



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                                            |  |                 |  |              
|------------------------------------------- |  | --------------- |  | -------------
|                                            |  | At December 31,
|                                            |  |                
|                                            |  | 2005            |  | 2004         
|                                            |  |                 |  |              
|Weighted-average discount rate              |  | 10.0%           |  | 10.0% - 12.0%
|Range of projected annual credit losses     |  | 1.45% - 1.65%   |  | 1.40% - 1.53%
|Range of projected cumulative credit losses |  | 2.31% - 2.44%   |  | 2.04% - 2.37%
|Prepayment speed                            |  | 1.35 - 1.50 ABS |  | 1.60 ABS     



|                                                                              |  |                        |        | 
|----------------------------------------------------------------------------- |  | ---------------------- | ------ | 
|                                                                              |  | At December 31, 2005   |       
|                                                                              |  |                        |       
|                                                                              |  | (Dollars in thousands) |       
|Carrying amount/fair value of retained interests                              |  | $                      | 20,107 | 
|Decrease in fair value from 10% adverse change in discount rate               |  |                        | 151    | 
|Decrease in fair value from 20% adverse change in discount rate               |  |                        | 301    | 
|Decrease in fair value from 10% adverse change in projected
    credit losses |  |                        | 141    | 
|Decrease in fair value from 20% adverse change in projected
    credit losses |  |                        | 282    | 



|        |                                                      
|------- | -----------------------------------------------------
|Note 6. | Auto Installment Contracts and Other Loans Receivable



|                                                              |                                                            |                                                      |         |         |        |   |         |         |        |  
|------------------------------------------------------------- | ---------------------------------------------------------- | ---------------------------------------------------- | ------- | ------- | ------ | - | ------- | ------- | ------ | -
|                                                              |                                                            | At December 31,                                      |        
|                                                              |                                                            |                                                      |        
|                                                              |                                                            | 2005                                                 |         |         | 2004   |  
|                                                              |                                                            |                                                      |         |         |        |  
|                                                              |                                                            | (Dollars in thousands)                               |        
|Auto installment contracts and other loans receivable:        |                                                            |                                                      |         |         |        |   |         |        
|                                                              | Auto installment contracts held-for-sale                   |                                                      | $       |        |        |   | $       | 73,462  |       
|                                                              |                                                            | Premiums, discounts and deferred fees and costs, net |         |         |       |   |         |         | 1,559  |  
|                                                              |                                                            |                                                      |         |         |        |  
|                                                              | Auto installment contracts held-for-sale, net              |                                                      |         |        |        |   |         | 75,021  |       
|                                                              |                                                            |                                                      |         |         |        |  
|                                                              | Other loans held-for-sale:                                 |                                                      |         |         |        |   |         |         |       
|                                                              |                                                            | Franchise loans                                      |         |         |       |   |         |         | 583    |  
|                                                              |                                                            | Asset-based loans                                    |         |         |       |   |         |         | 319    |  
|                                                              |                                                            |                                                      |         |         |        |  
|                                                              | Total other loans held-for-sale                            |                                                      |         |        |        |   |         | 902     |       
|                                                              |                                                            |                                                      |         |         |        |  
|Auto installment contracts and other loans held-for-sale, net |                                                            |                                                      |        |         |        |   | 75,923  |        
|                                                              |                                                            |                                                      |         |         |        |  
|                                                              | Auto installment contracts held-for-investment             |                                                      |         | 105,120 |        |   |         | 247,219 |       
|                                                              | Securitized auto installment contracts held-for-investment |                                                      |         | 520,387 |        |   |         |        |       
|                                                              |                                                            | Premiums, discounts and deferred fees and costs, net |         |         | 14,393 |   |         |         | 7,152  |  
|                                                              |                                                            | Allowance for credit losses                          |         |         | (6,279 | ) |         |         | (1,508 | )
|                                                              |                                                            |                                                      |         |         |        |  
|                                                              | Auto installment contracts held-for-investment, net        |                                                      |         | 633,621 |        |   |         | 252,863 |       
|                                                              |                                                            |                                                      |         |         |        |  
|Auto installment contracts and other loans receivable, net    |                                                            | $                                                    | 633,621 |         |        | $ | 328,786 |        
|                                                              |                                                            |                                                      |         |         |        |  

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Notes to Consolidated Financial
Statements  (Continued)














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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                                 |  |                        |         |                    |              |                  |                 |      |  |   |       |  |  |      |       |  |      |   |       |  |  |   |       | 
|-------------------------------- |  | ---------------------- | ------- | ------------------ | ------------ | ---------------- | --------------- | ---- |  | - | ----- |  |  | ---- | ----- |  | ---- | - | ----- |  |  | - | ----- | 
|                                 |  |                        |         |                    |              | Principal Amount |                 |      |  |   |      
|                                 |  |                        |         |                    |              | of Loans         |                 |      | 
|                                 |  |                        |         | Delinquent 60 Days |              |                  | Net Charge-Offs |     
|                                 |  | Loans Receivable       |         |                    | or More      |                  |                 |      | 
|                                 |  |                        |         |                    |              |                  |                 |     
|                                 |  |                        |         | For the Year Ended |             
|                                 |  | At December 31,        |         |                    | December 31, |                 
|                                 |  |                        |         |                    |              |                 
|                                 |  | 2005                   |         |                    | 2004         |                  |                 | 2005 |  |   | 2004  |  |  | 2005 |       |  | 2004 |  
|                                 |  |                        |         |                    |              |                  |                 |      |  |   |       |  |  |      |       |  |      |  
|                                 |  | (Dollars in thousands) |        
|Auto installment contracts(1)(2) |  | $                      | 773,635 |                    |              | $                | 578,069         |      |  | $ | 2,472 |  |  | $    | 1,108 |  |      | $ | 7,268 |  |  | $ | 6,404 | 
|Franchise loans                  |  |                        |        |                    |              |                  | 583             |      |  |   |      |  |  |      | 583   |  |      |   |      |  |  |   | 338   | 
|Other loans                      |  |                        |        |                    |              |                  | 319             |      |  |   |      |  |  |      | 319   |  |      |   |      |  |  |   | 52    | 
|                                 |  |                        |         |                    |              |                  |                 |      |  |   |       |  |  |      |       |  |      |  
|Total managed loans              |  |                        | 773,635 |                    |              |                  | 578,971         |      |  | $ | 2,472 |  |  | $    | 2,010 |  |      | $ | 7,268 |  |  | $ | 6,794 | 
|                                 |  |                        |         |                    |              |                  |                 |      |  |   |       |  |  |      |       |  |      |  
|Less:                            |  |                        |         |                    |              |                  |                 |      |  |   |       |  |  |      |       |  |      |   |       |  |  |   |       | 
|Securitized and sold loans       |  |                        | 140,014 |                    |              |                  | 250,185         |      |  |   |       |  |  |      |       |  |      |   |       |  |  |   |       | 
|                                 |  |                        |         |                    |              |                  |                 |      |  |   |       |  |  |      |       |  |      |  
|Loans receivable                 |  | $                      | 633,621 |                    |              | $                | 328,786         |      |  |   |       |  |  |      |       |  |      |   |       |  |  |   |       | 
|                                 |  |                        |         |                    |              |                  |                 |      |  |   |       |  |  |      |       |  |      |  






|    |                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes off-balance sheet amounts associated with securitized
    auto contracts sold with servicing retained.                                                                                                                                                                                                                        
|   
|(2) | Includes $3.3 million and $0.8 million of net
    charge-offs from off-balance sheet auto contracts and auto
    contracts held-for-sale, respectively, for 2005; includes
    $5.2 million and $1.1 million of net charge-offs from
    off-balance sheet auto contracts and auto contracts
    held-for-sale, respectively, for 2004.



|                               |  |                        |        |   |      |   |       |  
|------------------------------ |  | ---------------------- | ------ | - | ---- | - | ----- | -
|                               |  | At and For the Year    |       
|                               |  | Ended December 31,     |       
|                               |  |                        |       
|                               |  | 2005                   |        |   | 2004 |  
|                               |  |                        |        |   |      |  
|                               |  | (Dollars in thousands) |       
|Balance at beginning of period |  | $                      | 1,508  |   |      | $ |      |  
|Charge-offs                    |  |                        | (3,875 | ) |      |   | (222  | )
|Recoveries                     |  |                        | 699    |   |      |   | 118   |  
|                               |  |                        |        |   |      |  
|Net charge-offs                |  |                        | (3,176 | ) |      |   | (104  | )
|Provision for credit losses    |  |                        | 7,947  |   |      |   | 1,612 |  
|                               |  |                        |        |   |      |  
|Balance at end of period       |  | $                      | 6,279  |   |      | $ | 1,508 |  
|                               |  |                        |        |   |      |  

mark-to


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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)






|        |                       
|------- | ----------------------
|Note 7. | Premises and Equipment



|                                          |  |                        |        |   |      |   |        |  
|----------------------------------------- |  | ---------------------- | ------ | - | ---- | - | ------ | -
|                                          |  | At December 31,        |       
|                                          |  |                        |       
|                                          |  | 2005                   |        |   | 2004 |  
|                                          |  |                        |        |   |      |  
|                                          |  | (Dollars in thousands) |       
|Leasehold improvements                    |  | $                      | 756    |   |      | $ | 647    |  
|Furniture and equipment                   |  |                        | 4,496  |   |      |   | 4,323  |  
|                                          |  |                        |        |   |      |  
|                                          |  |                        | 5,252  |   |      |   | 4,970  |  
|Less:                                     |  |                        |        |   |      |   |        |  
|Accumulated depreciation and amortization |  |                        | (4,716 | ) |      |   | (4,237 | )
|                                          |  |                        |        |   |      |  
|Premises and equipment, net               |  | $                      | 536    |   |      | $ | 733    |  
|                                          |  |                        |        |   |      |  





|        |                                     
|------- | ------------------------------------
|Note 8. | Goodwill and Other Intangible Assets









|        |           
|------- | ----------
|Note 9. | Borrowings





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Notes to Consolidated Financial
Statements  (Continued)










|         |                             
|-------- | ----------------------------
|Note 10. | Securitization Notes Payable









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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|           |  |                        |         |                  |               |  |      |  
|---------- |  | ---------------------- | ------- | ---------------- | ------------- |  | ---- | -
|           |  | At December 31, 2005   |        
|           |  |                        |        
|           |  |                        |         | Weighted-Average |              
|           |  | Amount                 |         |                  | Interest Rate | 
|           |  |                        |         |                  |               | 
|           |  | (Dollars in thousands) |        
|2006       |  | $                      | 14,719  |                  |               |  | 4.22 | %
|2007       |  |                        | 98      |                  |               |  | 7.09 |  
|2008       |  |                        | 84,179  |                  |               |  | 3.98 |  
|2009       |  |                        | 73,500  |                  |               |  | 4.86 |  
|2010       |  |                        | 165,700 |                  |               |  | 4.36 |  
|Thereafter |  |                        | 183,372 |                  |               |  | 5.16 |  
|           |  |                        |         |                  |               | 
|           |  | $                      | 521,568 |                  |               |  | 4.65 | %
|           |  |                        |         |                  |               | 



|         |                   
|-------- | ------------------
|Note 11. | Capital Securities





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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|         |             
|-------- | ------------
|Note 12. | Income Taxes



|                         |  |                        |        |  |       |   |     |       |  |   |        | 
|------------------------ |  | ---------------------- | ------ |  | ----- | - | --- | ----- |  | - | ------ | 
|                         |  | For the Year Ended     |       
|                         |  | December 31, 2005      |       
|                         |  |                        |       
|                         |  | Federal                |        |  | State |   |     | Total | 
|                         |  |                        |        |  |       |   |     |       | 
|                         |  | (Dollars in thousands) |       
|Current provision        |  | $                      | 1,276  |  |       | $ | 360 |       |  | $ | 1,636  | 
|Deferred provision       |  |                        | 20,886 |  |       |   |    |       |  |   | 20,886 | 
|                         |  |                        |        |  |       |   |     |       | 
|Total income tax expense |  | $                      | 22,162 |  |       | $ | 360 |       |  | $ | 22,522 | 
|                         |  |                        |        |  |       |   |     |       | 

|                                   |  |                        |        |   |  |   |       |  |  |   |        |  
|---------------------------------- |  | ---------------------- | ------ | - |  | - | ----- |  |  | - | ------ | -
|                                   |  | For the Year Ended     |       
|                                   |  | December 31, 2004      |       
|                                   |  |                        |       
|                                   |  | (Dollars in thousands) |       
|Current provision                  |  | $                      |       |   |  | $ | 2,517 |  |  | $ | 2,517  |  
|Deferred provision                 |  |                        | (5,828 | ) |  |   | 785   |  |  |   | (5,043 | )
|                                   |  |                        |        |   |  |   |       |  | 
|Total income tax expense (benefit) |  | $                      | (5,828 | ) |  | $ | 3,302 |  |  | $ | (2,526 | )
|                                   |  |                        |        |   |  |   |       |  | 

|                         |  |                        |        |   |  |   |        |   |  |   |        |  
|------------------------ |  | ---------------------- | ------ | - |  | - | ------ | - |  | - | ------ | -
|                         |  | For the Year Ended     |       
|                         |  | December 31, 2003      |       
|                         |  |                        |       
|                         |  | (Dollars in thousands) |       
|Current provision        |  | $                      | 566    |   |  | $ | (7,111 | ) |  | $ | (6,545 | )
|Deferred provision       |  |                        | (1,483 | ) |  |   | 1,592  |   |  |   | 109    |  
|                         |  |                        |        |   |  |   |        |   | 
|Total income tax benefit |  | $                      | (917   | ) |  | $ | (5,519 | ) |  | $ | (6,436 | )
|                         |  |                        |        |   |  |   |        |   | 







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Notes to Consolidated Financial
Statements  (Continued)






|                                                 |  |                    |        |    |      |  |      |      |  |  |       |  
|------------------------------------------------ |  | ------------------ | ------ | -- | ---- |  | ---- | ---- |  |  | ----- | -
|                                                 |  | For the Year Ended |       
|                                                 |  | December 31,       |       
|                                                 |  |                    |       
|                                                 |  | 2005               |        |    | 2004 |  |      | 2003 | 
|                                                 |  |                    |        |    |      |  |      |      | 
|Federal statutory income tax rate                |  |                    | 34.0   | %  |      |  | 35.0 | %    |  |  | 35.0  | %
|State income tax, net of federal tax benefit     |  |                    | 4.2    |    |      |  | 4.2  |      |  |  | 39.2  |  
|Decrease in tax rates on net deferred tax assets |  |                    | (8.2   | )  |      |  |     |      |  |  |      |  
|Nondeductible merger costs                       |  |                    | (3.4   | )  |      |  |     |      |  |  |      |  
|Increase in valuation allowance                  |  |                    | (211.8 | )  |      |  |     |      |  |  |      |  
|Increase in contingent tax                       |  |                    | (2.2   | )  |      |  |     |      |  |  |      |  
|Nondeductible compensation                       |  |                    |       |    |      |  |     |      |  |  | (16.3 | )
|Other, net                                       |  |                    | (1.4   | )  |      |  |     |      |  |  | (1.7  | )
|                                                 |  |                    |        |    |      |  |      |      | 
|Effective income tax rate                        |  |                    | (188.8 | )% |      |  | 39.2 | %    |  |  | 56.2  | %
|                                                 |  |                    |        |    |      |  |      |      | 





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Notes to Consolidated Financial
Statements  (Continued)




|                                                |                                                      |                        |        |        |      |   |        |        | 
|----------------------------------------------- | ---------------------------------------------------- | ---------------------- | ------ | ------ | ---- | - | ------ | ------ | 
|                                                |                                                      | At December 31,        |       
|                                                |                                                      |                        |       
|                                                |                                                      | 2005                   |        |        | 2004 |  
|                                                |                                                      |                        |        |        |      |  
|                                                |                                                      | (Dollars in thousands) |       
|Deferred tax assets:                            |                                                      |                        |        |        |      |   |        |       
|                                                | Net operating loss carryforwards                     |                        | $      | 53,611 |      |   | $      | 48,808 | 
|                                                | Alternative minimum tax credit carryforwards         |                        |        | 5,193  |      |   |        | 3,916  | 
|                                                | Other accrued expenses not deducted for tax purposes |                        |        | 4,438  |      |   |        | 4,277  | 
|                                                | Provision for credit losses                          |                        |        | 2,405  |      |   |        | 1,065  | 
|                                                | Auto lease receivable financing                      |                        |        |       |      |   |        | 743    | 
|                                                | Mark-to-market adjustments, net                      |                        |        |       |      |   |        | 504    | 
|                                                | Other                                                |                        |        | 28     |      |   |        | 1,259  | 
|                                                |                                                      |                        |        |        |      |  
|Gross deferred tax assets                       |                                                      |                        | 65,675 |        |      |   | 60,572 |       
|Valuation allowance                             |                                                      |                        | 46,762 |        |      |   | 21,495 |       
|                                                |                                                      |                        |        |        |      |  
|Deferred tax assets, net of valuation allowance |                                                      |                        | 18,913 |        |      |   | 39,077 |       
|Deferred tax liabilities:                       |                                                      |                        |        |        |      |   |        |       
|                                                | Securitizations                                      |                        |        | 15,008 |      |   |        | 14,486 | 
|                                                | Mark-to-market adjustments, net                      |                        |        | 3,797  |      |   |        |       | 
|                                                | Tax depreciation in excess of book depreciation      |                        |        | 83     |      |   |        | 3,398  | 
|                                                | Real estate partnership investments                  |                        |        | 25     |      |   |        | 25     | 
|                                                |                                                      |                        |        |        |      |  
|Gross deferred tax liabilities                  |                                                      |                        | 18,913 |        |      |   | 17,909 |       
|                                                |                                                      |                        |        |        |      |  
|Net deferred tax assets                         |                                                      | $                      |       |        |      | $ | 21,168 |       
|                                                |                                                      |                        |        |        |      |  









|         |                    
|-------- | -------------------
|Note 13. | Liquidation Reserve

94-3


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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|                             |                      |                        |       |        |               |             |       |          |   |   |       |        |   |   |        |        |  
|---------------------------- | -------------------- | ---------------------- | ----- | ------ | ------------- | ----------- | ----- | -------- | - | - | ----- | ------ | - | - | ------ | ------ | -
|                             |                      |                        |       |        |               | Litigation/ |       |          |  
|                             |                      | Severance(1)           |       |        | Facilities(2) |             |       | Other(3) |   |   | Total |       
|                             |                      |                        |       |        |               |             |       |          |   |   |       |       
|                             |                      | (Dollars in thousands) |      
|Balance at December 31, 2003 |                      | $                      | 2,014 |        |               | $           | 6,379 |          |   | $ | 3,233 |        |   | $ | 11,626 |       
|                             | Accruals (reversals) |                        |       | 613    |               |             |       | 485      |   |   |       | (1,313 | ) |   |        | (215   | )
|                             | Payments             |                        |       | (1,313 | )             |             |       | (861     | ) |   |       | (381   | ) |   |        | (2,555 | )
|                             |                      |                        |       |        |               |             |       |          |   |   |       |       
|Balance at December 31, 2004 |                      |                        | 1,314 |        |               |             | 6,003 |          |   |   | 1,539 |        |   |   | 8,856  |       
|                             | Accruals (reversals) |                        |       | 66     |               |             |       | (177     | ) |   |       | 747    |   |   |        | 636    |  
|                             | Payments             |                        |       | (775   | )             |             |       | (881     | ) |   |       | (66    | ) |   |        | (1,722 | )
|                             |                      |                        |       |        |               |             |       |          |   |   |       |       
|Balance at December 31, 2005 |                      | $                      | 605   |        |               | $           | 4,945 |          |   | $ | 2,220 |        |   | $ | 7,770  |       
|                             |                      |                        |       |        |               |             |       |          |   |   |       |       






|    |                                                                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For the year ended December 31, 2005, accruals included
    increased severance expense due to employees length of
    service. For the year ended December 31, 2004, accruals
    represented the cost of additional
    reductions-in-force
    which increased severance obligations.                              
|   
|(2) | For the year ended December 31, 2005, reversals were
    attributable to postponement of a planned move of the
    Companys headquarters during 2005. For the year ended
    December 31, 2004, accruals represented additional
    abandonment cost attributable to projected delays in subleasing
    vacated space.
|   
|(3) | For the year ended December 31, 2005, accruals were
    attributable to estimated costs related to litigation. For the
    year ended December 31, 2004, reversals primarily reflect a
    reduction of accrued litigation attributable to settlements.                                                                



|         |              
|-------- | -------------
|Note 14. | Stock Options







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Notes to Consolidated Financial
Statements  (Continued)








|                             |  |               |          |   |                 |  |          |       |  |  |            |  
|---------------------------- |  | ------------- | -------- | - | --------------- |  | -------- | ----- |  |  | ---------- | -
|                             |  | Employee      |          |   | Non-Employee    |  |          |      
|                             |  | Stock Option  |          |   | Director Stock  |  |          |      
|                             |  | and Incentive |          |   | Option and      |  |          |      
|                             |  | Plans         |          |   | Incentive Plans |  |          | Total | 
|                             |  |               |          |   |                 |  |          |       | 
|Shares reserved for issuance |  |               | 813,001  |   |                 |  | 125,000  |       |  |  | 938,001    |  
|Granted                      |  |               | (973,989 | ) |                 |  | (113,700 | )     |  |  | (1,087,689 | )
|Forfeited                    |  |               | 420,203  |   |                 |  | 39,700   |       |  |  | 459,903    |  
|Expired                      |  |               | (210,624 | ) |                 |  | (28,800  | )     |  |  | (239,424   | )
|                             |  |               |          |   |                 |  |          |       | 
|Total available for grant    |  |               | 48,591   |   |                 |  | 22,200   |       |  |  | 70,791     |  
|                             |  |               |          |   |                 |  |          |       | 



|                                    |  |               |          |   |                |   |              |                  |  |   |        | 
|----------------------------------- |  | ------------- | -------- | - | -------------- | - | ------------ | ---------------- |  | - | ------ | 
|                                    |  | Number of     |          |   | Exercise Price |   |              | Weighted-Average | 
|                                    |  | Option Shares |          |   | Range          |   |              | Exercise Price   | 
|                                    |  |               |          |   |                |   |              |                  | 
|Outstanding at January 1, 2003      |  |               | 520,110  |   |                | $ | 45.90-344.10 |                  |  | $ | 88.00  | 
|Granted                             |  |               |         |   |                |   |             |                  |  |   |       | 
|Exercised                           |  |               | (330,783 | ) |                |   | 45.90-54.10  |                  |  |   | 46.40  | 
|Forfeited                           |  |               | (102,597 | ) |                |   | 54.10-316.30 |                  |  |   | 152.80 | 
|                                    |  |               |          |   |                |   |              |                  | 
|Outstanding at December 31, 2003    |  |               | 86,730   |   |                |   | 68.40-344.10 |                  |  |   | 169.10 | 
|Granted(1)                          |  |               | 50,000   |   |                |   | 16.87        |                  |  |   | 16.87  | 
|Exercised                           |  |               |         |   |                |   |             |                  |  |   |       | 
|Forfeited                           |  |               | (52,630  | ) |                |   | 70.75-344.06 |                  |  |   | 177.46 | 
|                                    |  |               |          |   |                |   |              |                  | 
|Outstanding at December 31, 2004    |  |               | 84,100   |   |                |   | 16.87-326.88 |                  |  |   | 73.47  | 
|Granted                             |  |               |         |   |                |   |             |                  |  |   |       | 
|Exercised(2)                        |  |               | (16,668  | ) |                |   | 14.62        |                  |  |   | 14.62  | 
|Forfeited                           |  |               | (18,900  | ) |                |   | 68.40-316.88 |                  |  |   | 142.56 | 
|                                    |  |               |          |   |                |   |              |                  | 
|Outstanding at December 31, 2005(2) |  |               | 48,532   |   |                | $ | 14.62-326.88 |                  |  | $ | 64.47  | 
|                                    |  |               |          |   |                |   |              |                  | 
|Exercisable at December 31, 2003    |  |               | 86,730   |   |                | $ | 68.40-344.10 |                  |  | $ | 169.10 | 
|                                    |  |               |          |   |                |   |              |                  | 
|Exercisable at December 31, 2004    |  |               | 34,100   |   |                | $ | 68.40-326.88 |                  |  | $ | 156.47 | 
|                                    |  |               |          |   |                |   |              |                  | 
|Exercisable at December 31, 2005    |  |               | 15,200   |   |                | $ | 68.40-326.88 |                  |  | $ | 173.77 | 
|                                    |  |               |          |   |                |   |              |                  | 

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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)







|    |                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On October 28, 2004, 50,000 stock options granted during
    2004 were repriced from $19.37 to $16.87 to reflect the
    September 30, 2004 cash distribution of $2.50 per
    share as required by the option agreements.                                                                                                                 
|   
|(2) | On January 27, 2005, 50,000 stock options granted during
    2004 were repriced from $16.87 to $14.62 to reflect the
    December 31, 2004 cash distribution of $2.25 per share
    as required by the option agreements. On December 28, 2005,
    16,668 stock options, representing the vested portion of the
    grant, were exercised.



|                         |  |             |        |           |                 |  |      |                  |  |           |             |  |           |                |        |  |  |   |        | 
|------------------------ |  | ----------- | ------ | --------- | --------------- |  | ---- | ---------------- |  | --------- | ----------- |  | --------- | -------------- | ------ |  |  | - | ------ | 
|                         |  | Outstanding |        |           |                
|                         |  |             |        |           | Exercisable     | 
|                         |  |             |        | Weighted- |                 |  |      |                  |  |          
|                         |  | Number of   |        |           | Average         |  |      |                  |  | Number of |             |  | Weighted- |               
|                         |  | Options     |        |           | Remaining       |  |      | Weighted-Average |  |           | Options     |  |           | Average        |       
|Range of Exercise Prices |  | Outstanding |        |           | Life (in years) |  |      | Exercise Price   |  |           | Exercisable |  |           | Exercise Price |       
|                         |  |             |        |           |                 |  |      |                  |  |           |             |  |           |                |       
|$ 14.62-14.62            |  |             | 33,332 |           |                 |  | 3.68 |                  |  | $         | 14.62       |  |           |                |       |  |  | $ |       | 
|68.40-99.69              |  |             | 5,250  |           |                 |  | 6.12 |                  |  |           | 77.14       |  |           |                | 5,250  |  |  |   | 77.14  | 
|134.69-179.38            |  |             | 3,150  |           |                 |  | 2.11 |                  |  |           | 149.00      |  |           |                | 3,150  |  |  |   | 149.00 | 
|185.00-185.00            |  |             | 800    |           |                 |  | 3.08 |                  |  |           | 185.00      |  |           |                | 800    |  |  |   | 185.00 | 
|188.13-188.13            |  |             | 250    |           |                 |  | 3.49 |                  |  |           | 188.13      |  |           |                | 250    |  |  |   | 188.13 | 
|188.75-188.75            |  |             | 600    |           |                 |  | 0.81 |                  |  |           | 188.75      |  |           |                | 600    |  |  |   | 188.75 | 
|255.00-255.00            |  |             | 2,300  |           |                 |  | 1.08 |                  |  |           | 255.00      |  |           |                | 2,300  |  |  |   | 255.00 | 
|299.06-299.06            |  |             | 2,000  |           |                 |  | 2.08 |                  |  |           | 299.06      |  |           |                | 2,000  |  |  |   | 299.06 | 
|316.25-316.25            |  |             | 350    |           |                 |  | 2.41 |                  |  |           | 316.25      |  |           |                | 350    |  |  |   | 316.25 | 
|326.88-326.88            |  |             | 500    |           |                 |  | 2.15 |                  |  |           | 326.88      |  |           |                | 500    |  |  |   | 326.88 | 
|                         |  |             |        |           |                 |  |      |                  |  |           |             |  |           |                |       
|$14.62-326.88            |  |             | 48,532 |           |                 |  | 3.59 |                  |  | $         | 64.47       |  |           |                | 15,200 |  |  | $ | 173.77 | 
|                         |  |             |        |           |                 |  |      |                  |  |           |             |  |           |                |       



| |                                  
| | ---------------------------------
| | SFAS No. 123 Pro Forma Disclosure





|         |                       
|-------- | ----------------------
|Note 15. | Employee Benefit Plans





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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)








|         |                       
|-------- | ----------------------
|Note 16. | Derivative Instruments







out-of


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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




|         |                              
|-------- | -----------------------------
|Note 17. | Commitments and Contingencies



| |         
| | --------
| | Premises





|           |  |                        |        | 
|---------- |  | ---------------------- | ------ | 
|           |  | Operating Lease        |       
|           |  | Payments               |       
|           |  |                        |       
|           |  | (Dollars in thousands) |       
|2006       |  | $                      | 2,606  | 
|2007       |  |                        | 2,649  | 
|2008       |  |                        | 2,420  | 
|2009       |  |                        | 1,931  | 
|2010       |  |                        | 1,994  | 
|Thereafter |  |                        | 3,121  | 
|           |  |                        |       
|           |  | $                      | 14,721 | 
|           |  |                        |       





| |                                   
| | ----------------------------------
| | Loans and Standby Letter of Credit





| |           
| | ----------
| | Litigation



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)










|         |                                              
|-------- | ---------------------------------------------
|Note 18. | Estimated Fair Value of Financial Instruments









| |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Cash, cash equivalent and restricted cash: This category
    includes cash and deposits due from depository institutions and
    money market funds. The cash equivalents were readily
    convertible to known amounts of cash or are so near their
    maturity that they present insignificant risk of changes in
    value. For these short-term financial instruments, the carrying
    amount approximated fair value.
|
| | Retained interests in securitizations: The fair value of
    retained interests in securitizations was estimated by
    discounting future cash flows using a discount rate commensurate
    with the risks involved.                                                                                                                                                                                                       
|
| | Auto installment contracts and other loans receivable: The
    fair value of auto contracts and other loans was based on prices
    for similar loans in the secondary whole loan or securitization
    markets with similar credit terms and remaining maturities.
    Prepayment estimates were based on historical experience for
    similar loans.                                                                     
|
| | Warehouse credit facility and other borrowings: These
    borrowings, which include BVACs floating-rate warehouse
    credit facility at December 31, 2005 and 2004 and a
    structured financing of the Companys auto lease cash flows
    as of December 31, 2004, mature within one year of the
    reported balance sheet date. For such borrowings, the carrying
    amount approximated fair value.                
|
| | Securitization notes payable: The fair value of
    securitization notes payable was based on quoted market prices
    for the individual notes.                                                                                                                                                                                                                                                                            
|
| | Interest rate swaps: The fair value of interest rate swaps
    is the estimated amount that the Company would receive or pay to
    terminate the swap agreements at the reporting date, taking into
    account current interest rates and the current creditworthiness
    of the swap counterparties.                                                                                                                    

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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Interest rate caps: The fair value of interest rate caps is
    the estimated amount that the Company would receive or pay to
    terminate the cap agreements at the reporting date, taking into
    account current interest rates and the current creditworthiness
    of the cap counterparties.                                                                                                                                                                                                                                
|
| | Limitations: The fair value estimates presented below were
    based on pertinent information available to the Company as of
    December 31, 2005 and 2004. Although the Company is not
    aware of any factors that would significantly affect the
    estimated fair value amounts, these amounts have not been
    comprehensively revalued for purposes of these financial
    statements since those dates and, therefore, current estimates
    of fair value may differ significantly from the amounts
    presented below.



|                       |                                                       |                        |     |         |            |  |     |          |  |  |            |         |  |  |     |         | 
|---------------------- | ----------------------------------------------------- | ---------------------- | --- | ------- | ---------- |  | --- | -------- |  |  | ---------- | ------- |  |  | --- | ------- | 
|                       |                                                       | At December 31,        |    
|                       |                                                       |                        |    
|                       |                                                       | 2005                   |     |         | 2004       | 
|                       |                                                       |                        |     |         |            | 
|                       |                                                       | Carrying               |     |         | Estimated  |  |     | Carrying |  |  | Estimated  |        
|                       |                                                       | Amount                 |     |         | Fair Value |  |     | Amount   |  |  | Fair Value |        
|                       |                                                       |                        |     |         |            |  |     |          |  |  |            |        
|                       |                                                       | (Dollars in thousands) |    
|Financial assets:      |                                                       |                        |     |         |            |  |     |          |  |  |            |         |  |  |     |        
|                       | Cash, cash equivalents and restricted cash            |                        | $   | 44,036  |            |  | $   | 44,036   |  |  | $          | 31,292  |  |  | $   | 31,292  | 
|                       | Retained interests in securitizations                 |                        |     | 20,107  |            |  |     | 20,107   |  |  |            | 22,636  |  |  |     | 22,636  | 
|                       | Auto installment contracts and other loans receivable |                        |     | 633,621 |            |  |     | 635,131  |  |  |            | 328,786 |  |  |     | 329,207 | 
|Financial liabilities: |                                                       |                        |     |         |            |  |     |          |  |  |            |         |  |  |     |        
|                       | Warehouse credit facility and other borrowings        |                        |     | 99,727  |            |  |     | 99,727   |  |  |            | 300,650 |  |  |     | 300,650 | 
|                       | Securitization notes payable                          |                        |     | 521,568 |            |  |     | 518,270  |  |  |            |        |  |  |     |        | 
|Interest rate swaps    |                                                       |                        | 997 |         |            |  | 997 |          |  |  | 398        |         |  |  | 398 |        
|Interest rate caps     |                                                       |                        | 433 |         |            |  | 433 |          |  |  | 698        |         |  |  | 698 |        



|         |                                                     
|-------- | ----------------------------------------------------
|Note 19. | Selected Quarterly Results of Operations (Unaudited)

|                            |  |                                                  |       |   |         |   |        |         |  |   |         |   |  |   |         |  
|--------------------------- |  | ------------------------------------------------ | ----- | - | ------- | - | ------ | ------- |  | - | ------- | - |  | - | ------- | -
|                            |  | For the Year Ended December 31, 2005             |      
|                            |  |                                                  |      
|                            |  | First                                            |       |   | Second  |   |        | Third   |  |   | Fourth  |  
|                            |  | Quarter                                          |       |   | Quarter |   |        | Quarter |  |   | Quarter |  
|                            |  |                                                  |       |   |         |   |        |         |  |   |         |  
|                            |  | (Dollars in thousands, except per share amounts) |      
|Interest income             |  | $                                                | 7,071 |   |         | $ | 9,120  |         |  | $ | 11,285  |   |  | $ | 12,777  |  
|Net interest income         |  |                                                  | 3,393 |   |         |   | 4,014  |         |  |   | 4,957   |   |  |   | 5,272   |  
|Provision for credit losses |  |                                                  | 837   |   |         |   | 1,793  |         |  |   | 1,257   |   |  |   | 4,060   |  
|Loss before income taxes    |  |                                                  | (491  | ) |         |   | (2,493 | )       |  |   | (2,165  | ) |  |   | (6,779  | )
|Net loss                    |  |                                                  | (334  | ) |         |   | (1,546 | )       |  |   | (1,364  | ) |  |   | (31,206 | )
|Basic loss per share(1)     |  | $                                                | (0.05 | ) |         | $ | (0.23  | )       |  | $ | (0.21   | ) |  | $ | (4.73   | )
|Diluted loss per share(1)   |  | $                                                | (0.05 | ) |         | $ | (0.23  | )       |  | $ | (0.21   | ) |  | $ | (4.73   | )

80



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Bay View Capital Corporation and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


|                            |  |                                                  |        |   |         |   |       |         |  |   |         |   |  |   |        |  
|--------------------------- |  | ------------------------------------------------ | ------ | - | ------- | - | ----- | ------- |  | - | ------- | - |  | - | ------ | -
|                            |  | For the Year Ended December 31, 2004             |       
|                            |  |                                                  |       
|                            |  | First                                            |        |   | Second  |   |       | Third   |  |   | Fourth  |  
|                            |  | Quarter                                          |        |   | Quarter |   |       | Quarter |  |   | Quarter |  
|                            |  |                                                  |        |   |         |   |       |         |  |   |         |  
|                            |  | (Dollars in thousands, except per share amounts) |       
|Interest income             |  | $                                                | 4,912  |   |         | $ | 5,212 |         |  | $ | 5,960   |   |  | $ | 6,525  |  
|Net interest income         |  |                                                  | 2,970  |   |         |   | 3,049 |         |  |   | 3,813   |   |  |   | 3,932  |  
|Provision for credit losses |  |                                                  |       |   |         |   | 521   |         |  |   | 331     |   |  |   | 760    |  
|Loss before income taxes    |  |                                                  | (1,483 | ) |         |   | (291  | )       |  |   | (2,662  | ) |  |   | (2,002 | )
|Net loss                    |  |                                                  | (901   | ) |         |   | (177  | )       |  |   | (1,618  | ) |  |   | (1,216 | )
|Basic loss per share(1)     |  | $                                                | (0.14  | ) |         | $ | (0.03 | )       |  | $ | (0.25   | ) |  | $ | (0.18  | )
|Diluted loss per share(1)   |  | $                                                | (0.14  | ) |         | $ | (0.03 | )       |  | $ | (0.25   | ) |  | $ | (0.18  | )






|    |                                                                                                                                                                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Loss per share is computed independently for each of the
    quarters presented. Therefore, the sum of the quarterly loss per
    share amounts may not equal the annual amount. This is caused by
    rounding and the averaging effect of the number of share
    equivalents outstanding throughout the year, which changes with
    the market price of the common stock.





|         |                  
|-------- | -----------------
|Note 20. | Subsequent Events



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM











Internal Control  Integrated Framework













82



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM























83



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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures



| |                                                 
| | ------------------------------------------------
| | Evaluation of Disclosure Controls and Procedures

13a-15(e) 15d-15(e)






| |                                                                     
| | --------------------------------------------------------------------
| | Managements Report on Internal Control Over
    Financial Reporting

13a-15(f) 15d-15(f)








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Management has implemented a process to monitor and assess both
    the design and operating effectiveness of our internal control
    over financial reporting.                                                                                                                                                                                                                                                                        
|
| |  | Because of its inherent limitations, a system of internal
    control over financial reporting may not prevent or detect
    misstatements. Also, projections of any evaluation of
    effectiveness as to future financial reporting periods are
    subject to the risk that controls may become inadequate because
    of changes in conditions or that the degree of compliance with
    the policies or procedures may deteriorate.



84



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##### Table of Contents







| |                                             
| | --------------------------------------------
| | Limitations on the Effectiveness of Controls





| |                                                         
| | --------------------------------------------------------
| | Changes in Internal Control Over Financial
    Reporting







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Insufficient Qualified Accounting Personnel 
    Prior to the quarter ended December 31, 2005, our
    management, including our Chief Executive Officer and our Chief
    Financial Officer, had concluded that we had insufficient
    qualified accounting personnel to identify and resolve complex
    accounting issues on a timely basis and a lack of appropriate
    resources resulting in insufficient supervision and review of
    our financial reporting process. We subsequently retained a
    qualified independent advisory firm to provide guidance relating
    to the application of complex accounting principles and retained
    additional senior accounting personnel to provide sufficient
    supervision and review of our financial reporting process.
    Management, including our Chief Executive Officer and our Chief
    Financial Officer, has concluded that these actions have
    remediated that material weakness.
|
| |  | Third-Party Service Organizations  Prior to
    the quarter ended December 31, 2005, we were unable to
    assess the effectiveness of the internal controls of one of Bay
    View Acceptance Corporation (BVAC)s
    third-party service organizations. The third-party
    organizations processes are an integral part of
    BVACs auto installment loan process, which is part of our
    internal control over financial reporting. During the quarter
    ended December 31, 2005, we received a SAS 70 Type II
    report from this third party service organization. Management,
    including our Chief Executive Officer and our Chief Financial
    Officer, has concluded that this action has remediated that
    material weakness.                                                                                                                                                                                                     

85



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


ON MANAGEMENTS ASSESSMENT OF THE EFFECTIVENESS OF
INTERNAL CONTROL


OVER FINANCIAL REPORTING AND THE EFFECTIVENESS


OF INTERNAL CONTROL OVER FINANCIAL REPORTING





Internal Control  Integrated Framework








Internal
Control  Integrated Framework Internal Control  Integrated
Framework




86



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87



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##### Table of Contents








|         |                  
|-------- | -----------------
|Item 9B. | Other Information






Part III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant

10-K, S-K









|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation

10-K,







|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters

10-K,







|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions

10-K,







|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services

10-K,





Part IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

(1) and (2):




| |                                                                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our Financial Statements and Supplementary Data contained in
    Item 8 are filed as part of this report. All financial
    statement schedules have been omitted as the required
    information is not applicable or has been included in our
    financial statements and related notes.

88



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##### Table of Contents



(a) (3):




| |                                        
| | ---------------------------------------
| | Exhibits are listed in the table below.

|           |    |          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |     
|---------- | -- | -------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Regulation |    |          |  | Reference to Prior                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|S-K        |    |          |  | Filing or Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Exhibit    |    |          |  | Number Attached                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Number     |    | Document |  | Hereto                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|           |    |          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|           | 2  |          |  | Plan of acquisition, reorganization, arrangement, liquidation or
    succession:                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|           |    |          |  | Agreement and Plan of Merger by and between Bay View Capital
    Corporation and Great Lakes Bancorp, Inc. dated as of
    October 26, 2005                                                                                                                                                                                                                                                                                                                                                                                 |  | 2a  
|           | 3  |          |  | Articles of Incorporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 3a  
|           |    |          |  | Bylaws                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 3b  
|           | 4  |          |  | Instruments defining the rights of security holders, including
    indentures:                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |     
|           |    |          |  | Articles of Incorporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 3a  
|           |    |          |  | Bylaws                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 3b  
|           |    |          |  | Specimen of common stock certificate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 4a  
|           | 9  |          |  | Voting trust agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | None
|           | 10 |          |  | Material contracts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |     
|           |    |          |  | First Supplemental Indenture between Bay View 2005-LJ-1 Owner
    Trust, Issuer and Deutsche Bank Trust Company Americas,
    Indenture Trustee dated as of June 3, 2005, to the
    Indenture dated as of February 1, 2005                                                                                                                                                                                                                                                                                                 |  | 10.1
|           |    |          |  | Amended and Restated Indenture by and between Bay View 2005
    Warehouse Trust, Issuer and JPMorgan Chase Bank, N.A., Indenture
    Trustee dated as of November 11, 2005                                                                                                                                                                                                                                                                                                                                                  |  | 10.2
|           |    |          |  | Amended and Restated Note Purchase Agreement among Bay View
    Acceptance Corporation, the Contributor, Bay View 2005 Warehouse
    Trust, the Issuer, Falcon Asset Securitization Corporation and
    Fairway Finance Company, LLC, the Initial Purchasers, JPMorgan
    Chase Bank, N.A. and Harris Nesbitt Corp., the Lender Group
    Agents, JPMorgan Chase Bank, N.A. and Bank of Montreal, the
    Financial Institutions and JPMorgan Chase Bank, N.A., the
    Administrative Agent dated as of November 11, 2005 |  | 10.3
|           |    |          |  | Amended and Restated Sales and Servicing Agreement by and among
    Bay View 2005 Warehouse Trust, as Issuer, Bay View Warehouse
    Corporation, as Depositor, Bay View Acceptance Corporation, as
    Servicer and as Contributor and JPMorgan Chase Bank, N.A. as
    Indenture Trustee and Systems & Services Technologies,
    Inc., as Backup Servicer dated as of November 11, 2005                                                                                                                                  |  | 10.4
|           |    |          |  | Form of Voting Agreement by and among certain directors and
    officers of Great Lakes Bancorp, Inc. and Bay View Capital
    Corporation dated as of October 26, 2005                                                                                                                                                                                                                                                                                                                                                     |  | 10a 
|           |    |          |  | Stock Purchase Agreement among AmeriCredit Financial Services,
    Inc., Bay View Capital Corporation and Bay View Acceptance
    Corporation dated as of November 7, 2005                                                                                                                                                                                                                                                                                                                                                  |  | 10b 
|           |    |          |  | Amended and Restated Agreement between Bay View Warehouse
    Corporation, as Depositor and Wilmington Trust Company, as Owner
    Trustee dated as of June 20, 2005                                                                                                                                                                                                                                                                                                                                                        |  | 10c 
|           |    |          |  | Contribution Agreement by and between Bay View Acceptance
    Corporation, as Contributor and Bay View 2005 Warehouse Trust,
    as Depositor dated as of June 20, 2005                                                                                                                                                                                                                                                                                                                                                     |  | 10c 

89



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|           |    |          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |             
|---------- | -- | -------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------
|Regulation |    |          |  | Reference to Prior                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|S-K        |    |          |  | Filing or Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Exhibit    |    |          |  | Number Attached                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Number     |    | Document |  | Hereto                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|           |    |          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|           |    |          |  | Custodian Agreement among Bay View Acceptance Corporation, as
    Custodian, Bay View 2005 Warehouse Trust, as Issuer and JPMorgan
    Chase Bank, N.A., as Indenture Trustee dated as of June 20,
    2005                                                                                                                                                                                                                                                                                       |  | 10c         
|           |    |          |  | Indenture by and between Bay View 2005 Warehouse Trust, as
    Issuer and JPMorgan Chase Bank, N.A., as Indenture Trustee dated
    as of June 20, 2005                                                                                                                                                                                                                                                                                                                                           |  | 10c         
|           |    |          |  | Note Purchase Agreement among Bay View Acceptance
    Corporation, the Contributor, Bay View 2005 Warehouse Trust, the
    Issuer, Falcon Asset Securitization Corporation and Fairway
    Finance Company, LLC, the Initial Purchasers, JPMorgan Chase
    Bank, N.A. and Harris Nesbit Corp., the Lender Group Agents,
    JPMorgan Chase Bank, N.A. and Bank of Montreal, the Financial
    Institutions and JPMorgan Chase Bank, N.A., the Administrative
    Agent dated as of June 20, 2005 |  | 10c         
|           |    |          |  | Sale and Servicing Agreement by and among Bay View 2005
    Warehouse Trust, as Issuer, Bay View Warehouse Corporation, as
    Depositor, Bay View Acceptance Corporation, as Servicer and
    Contributor and JPMorgan Chase Bank, N.A., as Indenture Trustee
    and Systems & Services Technologies, Inc., as Backup
    Servicer dated as of June 20, 2005                                                                                                                                    |  | 10c         
|           |    |          |  | Employment Contract with P.K. Chatterjee                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 10d         
|           |    |          |  | Supplemental Executive Retirement Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 10e         
|           |    |          |  | Senior Management Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 10e         
|           |    |          |  | Senior Management Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 10e         
|           |    |          |  | Amended and Restated 1986 Stock Option and Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 10f         
|           |    |          |  | Amendment No. One to the 1986 Stock Option and Incentive
    Plan                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 10g         
|           |    |          |  | Amendment No. One to the Amended and Restated 1995 Stock
    Option and Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                            |  | 10g         
|           |    |          |  | Amendment No. Two to the Amended and Restated 1995 Stock
    Option and Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                            |  | 10g         
|           |    |          |  | Amended and Restated 1989 Non-Employee Director Stock Option Plan                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 10h         
|           |    |          |  | Deferred Compensation Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 10i         
|           |    |          |  | Amended and Restated 1995 Stock Option and Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 10j         
|           |    |          |  | 1998   2000 Stock Performance Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 10k         
|           |    |          |  | 1998 Non-Employee Director Stock Option and Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 10k         
|           |    |          |  | Supplemental Phantom Stock Unit Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 10l         
|           |    |          |  | 2001 Equity Incentive Plan for Employees                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 10m         
|           |    |          |  | 2001 Non-Employee Director Stock Option Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 10n         
|           |    |          |  | Amendment No. One to the Stock in Lieu of Cash Compensation
    Plan for Non-Employee Directors                                                                                                                                                                                                                                                                                                                                                                                                   |  | 10o         
|           |    |          |  | Amendment No. Three to the Amended Outside Directors
    Retirement Plan                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 10o         
|           | 11 |          |  | Statement re computation of per share earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 11          
|           | 12 |          |  | Statements re computation of ratios                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 12          
|           | 13 |          |  | Annual Report to security holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Not required
|           | 14 |          |  | Code of Ethical Conduct                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 14          

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##### Table of Contents



|           |    |          |  |                                                                                                                                                            |  |             
|---------- | -- | -------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------
|Regulation |    |          |  | Reference to Prior                                                                                                                                        
|S-K        |    |          |  | Filing or Exhibit                                                                                                                                         
|Exhibit    |    |          |  | Number Attached                                                                                                                                           
|Number     |    | Document |  | Hereto                                                                                                                                                    
|           |    |          |  |                                                                                                                                                           
|           | 16 |          |  | Letter re change in certifying accountant                                                                                                                  |  | Not required
|           | 18 |          |  | Letter re change in accounting principles                                                                                                                  |  | None        
|           | 21 |          |  | Subsidiaries of the Registrant                                                                                                                             |  | 21          
|           | 22 |          |  | Published report regarding matters submitted to vote of security
    holders                                                                               |  | None        
|           | 23 |          |  | Consent of Grant Thornton LLP                                                                                                                              |  | 23.1        
|           |    |          |  | Consent of Deloitte & Touche LLP                                                                                                                           |  | 23.2        
|           | 24 |          |  | Power of attorney                                                                                                                                          |  | Not required
|           | 31 |          |  | Certification of Chief Executive Officer pursuant to
    Rules 13a-14 and 15d-14, as adopted pursuant to
    section 302 of the Sarbanes-Oxley Act of 2002 |  | 31.1        
|           | 31 |          |  | Certification of Chief Financial Officer pursuant to
    Rules 13a-14 and 15d-14, as adopted pursuant to
    section 302 of the Sarbanes-Oxley Act of 2002 |  | 31.2        
|           | 32 |          |  | Certification of Chief Executive Officer pursuant to
    18 U.S.C. section 1350, as adopted pursuant to
    section 906 of the Sarbanes-Oxley Act of 2002  |  | 32.1        
|           | 32 |          |  | Certification of Chief Financial Officer pursuant to
    18 U.S.C. section 1350, as adopted pursuant to
    section 906 of the Sarbanes-Oxley Act of 2002  |  | 32.2        
|           | 99 |          |  | Additional Exhibits                                                                                                                                        |  | None        



|    |  |                                                                                                                                                                                                         
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2a  |  | Filed as exhibit 2.1 to the Registrants Current
    Report on Form 8-K filed October 28, 2005 (File
    No. 001-14879)                                                                                 
|3a  |  | Filed as exhibit 3 to the Registrants Quarterly
    Report on Form 10-Q for the quarterly period ended
    June 30, 2004, as amended on Form 10-Q/A on May 10,
    2005 (File No. 001-14879)           
|3b  |  | Filed as exhibit 3.2 to the Registrants Current
    Report on Form 8-K filed February 1, 2006 (File
    No. 001-14879)                                                                                 
|4a  |  | Filed as exhibit 4.1 to the Registrants Annual Report
    on Form 10-K filed March 24, 2000 for the year ended
    December 31, 1999 (File No. 001-14879)                                              
|10a |  | Filed as exhibit 10.1 to the Registrants Current
    Report on Form 8-K filed October 28, 2005 (File
    No. 001-14879)                                                                                
|10b |  | Filed as exhibit 10.1 to the Registrants Current
    Report on Form 8-K filed November 9, 2005 (File
    No. 001-14879)                                                                                
|10c |  | Filed as exhibits 10.1 to 10.6, respectively, to the
    Registrants Quarterly Report on Form 10-Q filed
    August 5, 2005 for the quarter ended June 30, 2005
    (File No. 001-14879)               
|10d |  | Filed as exhibit 10.a to the Registrants Quarterly
    Report on Form 10-Q filed November 9, 2004 for the
    quarter ended September 30, 2004 (File No. 001-14879)                                    
|10e |  | Filed as exhibits 10.6 to 10.8, respectively, to the
    Registrants Annual Report on Form 10-K filed
    March 30, 1993 for the year ended December 31, 1992
    (File No. 000-17901)                 
|10f |  | Filed as exhibit 4 to the Registrants Registration
    Statement on Form S-8 filed August 11, 1995 (File
    No. 33-95724)                                                                             
|10g |  | Filed as exhibits 10 to 10.2, respectively, to the
    Registrants Quarterly Report on Form 10-Q filed
    November 12, 1999 for the quarterly period ended
    September 30, 1999 (File No. 001-14879)
|10h |  | Filed as exhibit 4.4 to the Registrants Registration
    Statement on Form S-8 filed July 26, 1991 (File
    No. 33-41924)                                                                             

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##### Table of Contents



|    |  |                                                                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10i |  | Filed as an exhibit to the Registrants Annual Report on
    Form 10-K for the fiscal year ended December 31, 1996,
    as amended on Form 10-K/ A on June 27, 1997 (File
    No. 000-17901)
|10j |  | Filed as an exhibit to the Registrants Annual Report on
    Form 10-K for the fiscal year ended December 31, 1996,
    as amended on Form 10-K/ A on June 27, 1997 (File
    No. 000-17901)
|10k |  | Filed as an appendix to the Registrants Definitive Proxy
    Statement on Schedule 14-A filed April 20, 1998 (File
    No. 000-17901)                                                      
|10l |  | Filed as exhibit 10.4 to the Registrants Annual
    Report on Form 10-K filed on March 24, 2000 for the
    year ended December 31, 1999 (File No. 001-14879)                              
|10m |  | Filed as exhibit 10 to the Registrants Registration
    Statement on Form S-8 filed September 27, 2001 (File
    No. 333-70372)                                                            
|10n |  | Filed as exhibit 10 to the Registrants Registration
    Statement on Form S-8 filed September 27, 2001 (File
    No. 333-70362)                                                            
|10o |  | Filed as exhibits 10.1 and 10.2, respectively, to the
    Registrants Annual Report on Form 10-K filed
    March 19, 2003 for the year ended December 31, 2002
    (File No. 001-14879)    

S-K.


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##### Table of Contents






Signatures






| |                             
| | ----------------------------
| | BAY VIEW CAPITAL CORPORATION



| |     |               
| | --- | --------------
| | By: | /s/ John Okubo

| |                                             
| | --------------------------------------------
| |                                             
| | John Okubo                                  
| | Executive Vice President and                
| | Chief Financial Officer                     
| | (Principal Financial and Accounting Officer)

Date:




|                                                                                                                                |  |                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------
|By: /s/ Robert B. GoldsteinRobert B. Goldstein
    Chairman of the Board                                                        |  | By: /s/ Charles G. CooperCharles G. Cooper, Director
    President and Chief Executive Officer
    (Principal Executive Officer)
|Date: March 21, 2006                                                                                                            |  | Date: March 21, 2006                                                                                                            
|                                                                                                                               
|By: /s/ Prodyodth K. ChatterjeeProdyodth K. Chatterjee, Director
    Executive Vice President and Director of Retail Operations |  | By: /s/ Joel E. HymanJoel E. Hyman
    Director                                                                                 
|Date: March 21, 2006                                                                                                            |  | Date: March 21, 2006                                                                                                            
|                                                                                                                               
|By: /s/ Frederick W. DreherFrederick W. Dreher
    Director                                                                     |  | By: /s/ Daniel W. PorterDaniel W. Porter
    Director                                                                           
|Date: March 21, 2006                                                                                                            |  | Date: March 21, 2006                                                                                                            
|                                                                                                                               
|                                                                                                                               
|By: /s/ Roger K. EasleyRoger K. Easley
    Director                                                                             |  | By: /s/ John W. RoseJohn W. Rose
    Director                                                                                   
|Date: March 21, 2006                                                                                                            |  | Date: March 21, 2006                                                                                                            
|                                                                                                                               
|By: /s/ Thomas M. FosterThomas M. Foster
    Director                                                                           |  |                                                                                                                                 
|                                                                                                                               
|Date: March 21, 2006                                                                                                            |  |                                                                                                                                 

93