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Florida | 6035 | 59-2022148 | ||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Alison W. Miller Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. 150 West Flagler Street, Suite 2200 Miami, Florida 33130 (305) 789-3200 | Stephen K. Roddenberry Akerman Senterfitt, P.A. One Southeast Third Avenue 25th Floor Miami, Florida 33131-1714 (305) 374-5600 | Seth M. Wise President Woodbridge Holdings Corporation 2100 West Cypress Creek Road Fort Lauderdale, Florida 33309 (954) 940-4950 |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company þ |
Proposed Maximum | Proposed Maximum | Amount of | ||||||||||
Title of Each Class of | Amount to be | Offering | Aggregate | Registration | ||||||||
Securities to be Registered(1) | Registered(2) | Price per Unit | Offering Price(3) | Fee(4) | ||||||||
Class A Common Stock, par value $0.01 per share | 44,769,038 | N/A | $13,030,758 | $727.12 | ||||||||
(1) | This registration statement relates to Class A Common Stock, par value $0.01 per share (“BFC Class A Common Stock”), of BFC Financial Corporation (“BFC” or the “registrant”) issuable to holders of Class A Common Stock, par value $0.01 per share (“Woodbridge Class A Common Stock”), of Woodbridge Holdings Corporation (“Woodbridge”), pursuant to the proposed merger (the “Merger”) of Woodbridge with and into WDG Merger Sub, LLC, a wholly owned subsidiary of BFC (“Merger Sub”). |
(2) | Based on the number of shares of BFC Class A Common Stock which may be issued in connection with the Merger, calculated as the product of (i) the number of outstanding shares of Woodbridge Class A Common Stock (other than shares owned by BFC) and (ii) an exchange ratio of 3.47 shares of BFC Class A Common Stock for each share of Woodbridge Class A Common Stock (other than shares owned by BFC). |
(3) | Pursuant to Rules 457(c) and 457(f)(1) under the Securities Act of 1933, as amended (the “Securities Act”), and solely for purposes of calculating this registration fee, the proposed maximum aggregate offering price is equal to the product of (i) the average of the high and low prices per share of Woodbridge Class A Common Stock, as quoted on the Pink Sheets Electronic Quotation Service, as of a date within five business days prior to the initial filing of this Registration Statement. and (ii) the number of outstanding shares of Woodbridge Class A Common Stock (other than shares owned by BFC). |
(4) | Previously paid in connection with the initial filing of this Registration Statement. |
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The information in this joint proxy statement/prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This joint proxy statement/prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. |
Alan B. Levan Chairman, Chief Executive Officer and President BFC Financial Corporation | Seth M. Wise President Woodbridge Holdings Corporation |
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2100 West Cypress Creek Road
Fort Lauderdale, Florida 33309
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
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Annex A | Agreement and Plan of Merger | |
Annex B | Opinion of JMP Securities LLC | |
Annex C | Opinion of Allen C. Ewing & Co. | |
Annex D | Form of Articles of Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation | |
Annex E | Form of By-laws of BFC Financial Corporation, as Proposed to be Amended | |
Annex F | Appraisal Rights Statutes under the Florida Business Corporation Act |
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Q: | What is the proposed merger? |
A: | On July 2, 2009, BFC Financial Corporation (“BFC”) and Woodbridge Holdings Corporation (“Woodbridge”) entered into the Agreement and Plan of Merger (the “merger agreement”) that is described in this joint proxy statement/prospectus. See “The Merger Agreement” beginning on page 90. A copy of the merger agreement is attached to this joint proxy statement/prospectus as Annex A. |
Subject to the terms and conditions of the merger agreement, Woodbridge will be merged with and into WDG Merger Sub, LLC, a wholly owned subsidiary of BFC (“Merger Sub”), with Merger Sub surviving and remaining a wholly owned subsidiary of BFC (the “merger”). | ||
Q: | Why am I being asked to vote on the merger? | |
A: | In accordance with BFC’s Amended and Restated Articles of Incorporation, the merger cannot be completed unless it is approved by BFC’s shareholders. Further, under the Florida Business Corporation Act (the “FBCA”), the related amendment to BFC’s Amended and Restated Articles of Incorporation to increase the number of authorized shares of BFC’s Class A Common Stock from 100,000,000 shares to 150,000,000 shares requires the approval of BFC’s shareholders. Accordingly, at the special meeting of BFC’s shareholders, BFC’s shareholders will be asked to approve the merger and the related transactions, including the amendment to BFC’s Amended and Restated Articles of Incorporation increasing the number of authorized shares of BFC’s Class A Common Stock from 100,000,000 shares to 150,000,000 shares. | |
In addition, under the FBCA, the merger cannot be completed unless Woodbridge’s shareholders approve the merger agreement. As a result, at Woodbridge’s annual meeting of shareholders, Woodbridge’s shareholders will be asked, among other proposals, to approve the merger agreement. |
See “Questions and Answers About the BFC Special Meeting” beginning on page ix and “Questions and Answers About the Woodbridge Annual Meeting” beginning on page xii for a discussion about the voting rights and voting procedures with respect to, and the shareholder vote required to approve, the merger and the related transactions and the merger agreement, as applicable. |
Q: | What will Woodbridge’s shareholders receive in the merger? | |
A: | Other than BFC, whose shares of Woodbridge’s Class A Common Stock and Class B Common Stock will be canceled in connection with the merger, and holders of Woodbridge’s Class A Common Stock who exercise and perfect their appraisal rights, each holder of Woodbridge’s Class A Common Stock will be entitled to receive 3.47 shares of BFC’s Class A Common Stock for each share of Woodbridge’s Class A Common Stock owned by such holder at the effective time of the merger. BFC will not issue fractional shares of its Class A Common Stock in the merger, but instead, the aggregate number of shares of BFC’s Class A Common Stock to which holders of Woodbridge’s Class A Common Stock will be entitled to receive will be rounded up to the next largest whole number. On July 2, 2009, the last trading day before the public announcement of the merger agreement, and on , 2009, the last trading day before the date of this joint proxy statement/prospectus, the closing price of BFC’s Class A Common Stock, as quoted on the Pink Sheets Electronic Quotation Service (the “Pink Sheets”), was $0.40 per share and $ per share, respectively. On July 2, 2009 and on , 2009, the closing price of Woodbridge’s Class A Common Stock, as quoted on the Pink Sheets, was $1.10 per share and $ per share, respectively. Shareholders of both companies are encouraged to obtain current market quotations prior to voting their shares. | |
Q: | What will happen to restricted stock awards of shares of Woodbridge’s Class A Common Stock and options to purchase shares of Woodbridge’s Class A Common Stock? | |
A: | At the effective time of the merger, BFC will assume Woodbridge’s 2003 Stock Incentive Plan, and all restricted stock awards of shares of Woodbridge’s Class A Common Stock outstanding at the effective time of the merger will be converted automatically into restricted stock awards of shares of BFC’s Class A Common Stock on the same terms and conditions and with the same restrictions, but with appropriate |
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adjustments made to the number of shares of BFC’s Class A Common Stock covered by the new restricted stock awards based on the exchange ratio of 3.47 shares of BFC’s Class A Common Stock for each share of Woodbridge’s Class A Common Stock. |
All options to purchase shares of Woodbridge’s Class A Common Stock outstanding at the effective time of the merger will be canceled in connection with the merger, and the holders thereof will not receive any consideration as a result of such cancellation. In agreeing to this treatment of Woodbridge’s options, Woodbridge’s special committee and board of directors considered the fact that, as of the date of the merger agreement, all such options were, and, for the foreseeable future, all such options are expected to be, “out-of-the-money” with exercise prices greatly exceeding the current market price of Woodbridge’s Class A Common Stock. However, it is anticipated that some or all of the directors and executive officers of Woodbridge will be granted BFC stock options or other equity-based compensation awards of BFC following the merger. |
Q: | What will BFC’s shareholders receive in connection with the merger? | |
A: | BFC’s shareholders will not receive any consideration in connection with the merger. Each share of BFC’s Class A Common Stock and Class B Common Stock outstanding immediately prior to the merger will remain outstanding as a share of BFC’s Class A Common Stock and Class B Common Stock, respectively, immediately following the merger. | |
Q: | Will there be restrictions on the transfer of the shares of BFC’s Class A Common Stock to be issued in the merger? | |
A: | The shares of BFC’s Class A Common Stock to be issued in the merger will be freely tradeable unless you are an affiliate of Woodbridge or BFC within the meaning of the federal securities laws. This will generally be the case only if you are a director, executive officer or holder of 10% or more of Woodbridge’s or BFC’s outstanding common stock. | |
Q: | What are the material federal income tax consequences of the merger to Woodbridge’s shareholders? | |
A: | The merger has been structured to qualify as a tax-free “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, holders of Woodbridge’s Class A Common Stock should not recognize gain or loss for United States federal income tax purposes upon the exchange of shares of Woodbridge’s Class A Common Stock for shares of BFC’s Class A Common Stock. | |
As described in further detail below, holders of Woodbridge’s Class A Common Stock have the right to assert and exercise appraisal rights with respect to the merger and obtain payment in cash for the value of their shares. The receipt of cash in exchange for shares of Woodbridge’s Class A Common Stock will be a taxable transaction. | ||
Tax matters are very complicated, and the tax consequences of the merger to a particular shareholder will depend in part on such shareholder’s circumstances. Accordingly, you are urged to consult your own tax advisor for a full understanding of the tax consequences of the merger to you, including the applicability and effect of federal, state, local and foreign income and other tax laws. | ||
Q: | Does the board of directors of Woodbridge recommend the approval of the merger agreement? | |
A: | Yes. The board of directors of Woodbridge designated a special committee comprised of independent directors (the “Woodbridge special committee”) to, among other things, negotiate, review and evaluate the terms and conditions, and determine the advisability of the merger. After such negotiation, review and evaluation, the Woodbridge special committee determined that the merger is advisable, fair to and in the best interests of Woodbridge’s shareholders. On the basis of such determination, the Woodbridge special committee recommended that the full board of directors of Woodbridge approve the merger agreement and the merger on the terms and conditions set forth in the merger agreement and recommend to the shareholders of Woodbridge that they approve the merger agreement. In arriving at its determination, the Woodbridge special committee consulted with certain members of Woodbridge’s senior management and its |
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legal and financial advisors and considered the factors described under “The Merger — Recommendation of the Woodbridge Board and its Reasons for the Merger.” | ||
After careful consideration of the recommendation of the Woodbridge special committee and careful evaluation and consideration of the merger agreement and the transactions contemplated thereby, the board of directors of Woodbridge determined that the merger agreement and the merger are advisable, fair to and in the best interests of Woodbridge’s shareholders. Accordingly, the board of directors of Woodbridge approved the merger agreement and the transactions contemplated thereby, including the merger, and recommends that Woodbridge’s shareholders vote “FOR” the approval of the merger agreement. In arriving at its determination, the Woodbridge board of directors also considered the factors described under “The Merger — Recommendation of the Woodbridge Board and its Reasons for the Merger.” | ||
Q: | Does the board of directors of BFC recommend the approval of the merger? | |
A: | Yes. After careful evaluation and consideration of the merger agreement and the transactions contemplated thereby, the board of directors of BFC determined that the merger agreement and the transactions contemplated thereby are advisable, fair to and in the best interests of BFC and its shareholders. Accordingly, the board of directors of BFC approved the merger agreement and the transactions contemplated thereby and recommends that BFC’s shareholders vote “FOR” the merger. In arriving at this determination, the board of directors of BFC also consulted with certain members of BFC’s senior management and BFC’s legal and financial advisors and considered the factors described under “The Merger — Recommendation of the BFC Board and its Reasons for the Merger.” | |
Q: | How do Woodbridge and BFC expect to conduct their respective businesses until the merger is completed and after the merger is completed? | |
A: | Both Woodbridge and BFC expect to, and have agreed in the merger agreement to, conduct their respective businesses prior to the effective time of the merger in the usual and ordinary course, consistent with their existing business and investment strategies and operational plans. With respect to Woodbridge, this may include, among other things, the continued pursuit of investments and acquisitions within or outside of the real estate industry and providing support to its existing investments, including additional investments in affiliates such as Bluegreen Corporation (“Bluegreen”), among others. Further, BFC expects to continue providing support for its controlled subsidiaries with a view to the improved performance of the organization as a whole, and this business strategy may include additional investments in its controlled subsidiaries such as BankAtlantic Bancorp, Inc. (“BankAtlantic Bancorp”). |
In addition, BFC expects that both it and Woodbridge (as a wholly owned subsidiary of BFC) will continue to conduct their respective businesses following the merger in the usual and ordinary course. BFC intends to allocate resources within the consolidated group among BFC’s investments and subsidiaries in a manner which its board of directors believes to be beneficial to BFC’s shareholders. It is currently anticipated that BFC will make additional investments in BankAtlantic Bancorp, whether in BankAtlantic Bancorp’s previously announced $100 million rights offering to its shareholders or otherwise, and may also make additional investments in Bluegreen, Core Communities, LLC (“Core Communities” or “Core”) or Benihana, Inc. (“Benihana”). |
Q: | Are there risks associated with the merger and the related transactions? |
A: | Yes. In evaluating the merger agreement and the transactions contemplated thereby, you should carefully consider the risks discussed in the section of this joint proxy statement/prospectus entitled “Risk Factors” beginning on page 19 and the other information about BFC and Woodbridge contained in this joint proxy statement/prospectus. |
Q: | When do the parties expect the merger to be completed? |
A: | BFC and Woodbridge are working to complete the merger as quickly as practicable. If each of BFC’s and Woodbridge’s shareholders approve the merger and the merger agreement, respectively, and the other conditions to consummation of the merger are met, then BFC and Woodbridge expect that the merger will be completed prior to the end of the third quarter of 2009. However, it is possible that factors outside of |
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BFC’s or Woodbridge’s control could require them to complete the merger at a later time or not complete it at all. |
For a description of certain matters that could delay or prevent the completion of the merger, please read the section entitled “Risk Factors” beginning on page 19. |
Q: | If I am a Woodbridge shareholder, should I send in my stock certificates now? | |
A: | No. If you are a holder of Woodbridge’s Class A Common Stock and the merger is approved, you will receive written instructions from the exchange agent retained for purposes of the merger explaining how to exchange your certificates representing shares of Woodbridge’s Class A Common Stock for certificates representing shares of BFC’s Class A Common Stock to which you are entitled as a result of the merger. BFC’s shareholders will not exchange their stock certificates. | |
Q: | Can I assert appraisal rights with respect to the merger? |
A: | Under the FBCA, holders of Woodbridge’s Class A Common Stock have the right to assert and exercise appraisal rights with respect to the merger and obtain payment in cash for the value of their shares rather than receive shares of BFC’s Class A Common Stock. The receipt of cash in exchange for shares of Woodbridge’s Class A Common Stock will be a taxable transaction. Pursuant to the FBCA, the fair value of the shares of Woodbridge’s Class A Common Stock held by a Woodbridge shareholder asserting appraisal rights means the value of such shares calculated as of the time immediately preceding the consummation of the merger, excluding any appreciation or depreciation in anticipation of the merger, and could be more than, less than or equal to the value of the shares of BFC’s Class A Common Stock that the shareholder would otherwise have received in connection with the merger. To assert and exercise appraisal rights, holders of Woodbridge’s Class A Common Stock must strictly follow the procedures set forth in the FBCA. These procedures are summarized under the section entitled “The Merger — Appraisal Rights” beginning on page 85. In addition, the text of the applicable provisions of the FBCA is included as Annex F to this joint proxy statement/prospectus. Any holder of Woodbridge’s Class A Common Stock wishing to assert and exercise appraisal rights is urged to consult with his, her or its legal counsel before attempting to assert and exercise those rights. BFC’s obligation to consummate the merger is conditioned upon holders of not more than 10% of the outstanding shares of Woodbridge’s Class A Common Stock exercising, or remaining entitled to exercise, appraisal rights for their shares. |
Under the FBCA, BFC’s shareholders will not be entitled to appraisal rights in connection with the merger. | ||
Q: | Where can I find more information about BFC and Woodbridge? |
A: | You can obtain more information about BFC and Woodbridge from the various sources described under “Where You Can Find More Information” beginning on page 301. |
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Q: | Where and when is the BFC special meeting? |
A: | The special meeting of BFC’s shareholders will be held at the Corporate Center, 2100 West Cypress Creek Road, Fort Lauderdale, Florida 33309 on September 21, 2009 commencing at 11:30 a.m., local time. |
Q: | Who can vote at the meeting? |
A: | Record holders of BFC’s Class A Common Stock and record holders of BFC’s Class B Common Stock as of the close of business on August 18, 2009 (the “BFC record date”) may vote at the meeting. As of the close of business on the BFC record date, shares of BFC’s Class A Common Stock and shares of BFC’s Class B Common Stock were outstanding. |
Q: | What will BFC’s shareholders be asked to vote on at the meeting? | |
A: | As described above and in the notice of special meeting of BFC’s shareholders, BFC’s shareholders will be asked to consider and vote upon the proposal to approve the merger and the related transactions, including an amendment to BFC’s Amended and Restated Articles of Incorporation increasing the number of authorized shares of BFC’s Class A Common Stock from 100,000,000 shares to 150,000,000 shares. In accordance with BFC’s Amended and Restated Articles of Incorporation and the FBCA, the merger and the related transactions cannot be completed unless they are approved by BFC’s shareholders. | |
Q: | What are the voting rights of BFC’s shareholders with respect to the merger and the related transactions? | |
A: | BFC’s shareholders will vote together as a single class on the proposal relating to the merger and the related transactions. Each share of BFC’s Class A Common Stock entitles the holder thereof to one vote per share on such proposal, with all holders of BFC’s Class A Common Stock having in the aggregate 22.0% of the general voting power of BFC. The number of votes represented by each share of BFC’s Class B Common Stock, which represents in the aggregate 78% of the general voting power of BFC, is calculated in accordance with BFC’s Amended and Restated Articles of Incorporation. At the meeting, each outstanding share of BFC’s Class B Common Stock will be entitled to votes on the proposal relating to the merger and the related transactions. | |
Q: | What are my choices when voting on the merger and the related transactions? | |
A: | BFC’s shareholders may vote for or against, or abstain from voting on, the merger and the related transactions. | |
Q: | What vote of BFC’s shareholders is required to approve the merger and the related transactions? | |
A: | The proposal to approve the merger and the related transactions will be approved if it receives the affirmative vote of a majority of the votes entitled to be cast on such proposal. Abstentions, failures to vote and “broker non-votes” will have the same effect as votes against the merger and the related transactions. | |
Alan B. Levan, BFC’s Chairman, Chief Executive Officer and President, and John E. Abdo, BFC’s Vice Chairman, collectively own, directly or indirectly, and are entitled to vote approximately 27.7% of the outstanding shares of BFC’s Class A Common Stock and approximately 86.3% of the outstanding shares of BFC’s Class B Common Stock, representing approximately 73.4% of the total voting power of BFC. Messrs. Abdo and Levan have indicated their intention to vote their shares of BFC’s Class A Common Stock and Class B Common Stock in favor of the merger and the related transactions. If Messrs. Levan and Abdo so vote their shares of BFC’s Class A Common Stock and Class B Common Stock to approve the merger and the related transactions, then the approval of the merger and the related transactions by BFC’s shareholders would be assured. |
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Q: | How many shares of BFC’s Class A Common Stock and Class B Common Stock do BFC’s executive officers and directors collectively own? | |
A: | BFC’s executive officers and directors and their respective affiliates collectively own and are entitled to vote 10,724,118 shares, or approximately 28.0%, of BFC’s Class A Common Stock, and 5,912,570 shares, or approximately 86.3%, of BFC’s Class B Common Stock. These shares collectively represent approximately 73.4% of the general voting power of BFC. | |
Q: | What constitutes a quorum? | |
A: | The presence at the meeting, in person or by proxy, of holders of shares of BFC’s Class A Common Stock and Class B Common Stock representing a majority of BFC’s voting power as of the BFC record date will constitute a quorum, permitting the conduct of business at the meeting. | |
Q: | May I vote in person? | |
A: | If your shares of BFC’s Class A Common Stock or Class B Common Stock are registered directly in your name with BFC’s transfer agent, you will be considered the shareholder of record of those shares, and the proxy materials and proxy card are being sent directly to you by BFC. If you are a BFC shareholder of record, you may attend the BFC special meeting and vote your shares in person, rather than signing and returning your proxy card or otherwise transmitting your voting instructions as described on the proxy card. | |
If your shares of BFC Class A Common Stock or Class B Common Stock are held in a brokerage account or by another nominee, you are considered the beneficial owner of shares held in “street name,” and the proxy materials are being forwarded to you together with a voting instruction card. As the beneficial owner, you are also invited to attend the BFC special meeting. Since a beneficial owner is not the shareholder of record, you may not vote these shares in person at the meeting unless you obtain a “legal proxy” from the broker, trustee or nominee that holds your shares, giving you the right to vote the shares in person. |
Q: | If my shares are held in “street name” by my broker, will my broker vote my shares without instructions from me? |
A: | No. Because the proposal relating to the merger and the related transactions is not considered a “routine matter,” if your shares of BFC’s Class A Common Stock or Class B Common Stock are held in “street name” and you have not provided voting instructions to your broker or nominee, then your broker or nominee may not vote your shares in its discretion on the proposal. Accordingly, your broker will vote your shares for you on the merger and the related transactions only if you provide instructions to your broker on how to vote your shares. You should follow the directions provided by your broker regarding how to instruct your broker to vote your shares. Without instructions, your shares will not be voted on the merger and the related transactions and the “broker non-votes” of such shares will have the effect of a vote against the merger and the related transactions. | |
Q: | What happens if I do not attend the meeting and fail to return a proxy card or otherwise provide voting instructions? |
A: | The failure to return your proxy card or otherwise provide voting instructions will have the same effect as voting against the merger and the related transactions. |
Q: | What do I need to do now? |
A: | After carefully reading and considering the information contained in this joint proxy statement/prospectus, please complete, sign and date your proxy and return it in the enclosed postage-paid return envelope or otherwise transmit your voting instructions as described on the enclosed proxy card so that your shares may be represented at the meeting. If you sign and send in your proxy and do not indicate how you want to vote, BFC will count your proxy as a vote “FOR” the merger and the related transactions. |
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Q: | Can I change my vote after I have mailed my signed proxy? | |
A: | Yes. You can change your vote at any time before your proxy is voted at the meeting. If you are the record owner of your shares, you can do this in one of three ways. First, you can send a written notice to BFC’s Secretary stating that you would like to revoke your proxy. Second, you can complete and submit by mail a new valid proxy bearing a later date or transmit new voting instructions by telephone or internet as described on the proxy card. Third, you can attend the meeting and vote in person; however, attendance at the meeting will not in and of itself constitute revocation of a previously executed proxy. | |
If you are not the record owner of your shares and your shares are held in “street name,” you must contact your broker, bank or other nominee to find out how to change your vote. | ||
Q: | Are there any other matters to be acted upon at the BFC special meeting? | |
A: | No. The only matter to be acted upon at the meeting is the proposal to approve the merger and the related transactions, including the amendment to BFC’s Amended and Restated Articles of Incorporation increasing the number of authorized shares of BFC’s Class A Common Stock from 100,000,000 shares to 150,000,000 shares. | |
Q: | Who can help answer my questions? |
A: | If you are a BFC shareholder, and would like additional copies, without charge, of this joint proxy statement/prospectus or if you have questions about the merger and the related transactions, including the procedures for voting your shares, you should call the information agent for the merger, Georgeson Inc.,toll-free at (888)666-2593. | |
BFC’s shareholders may also contact: | ||
BFC Financial Corporation |
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Q: | Where and when is the Woodbridge annual meeting? |
A: | Woodbridge’s annual meeting of shareholders will be held at the Corporate Center, 2100 West Cypress Creek Road, Fort Lauderdale, Florida 33309 on September 21, 2009 commencing at 12:00 p.m., local time. |
Q: | Who can vote at the Woodbridge annual meeting? |
A: | Record holders of Woodbridge’s Class A Common Stock and record holders of Woodbridge’s Class B Common Stock as of the close of business on August 18, 2009 (the “Woodbridge record date”) may vote at the Woodbridge annual meeting. As of the close of business on the Woodbridge record date, shares of Woodbridge’s Class A Common Stock and 243,807 shares of Woodbridge’s Class B Common Stock were outstanding. |
Q: | What will Woodbridge’s shareholders be asked to vote on at the meeting? | |
A: | As described above and in the notice of annual meeting of Woodbridge’s shareholders, Woodbridge’s shareholders will be asked to consider and vote upon the proposal to approve the merger agreement. In accordance with the FBCA, the merger cannot be completed unless the merger agreement is approved by Woodbridge’s shareholders. | |
In addition to the proposal relating to the merger agreement, Woodbridge’s shareholders will also be asked to consider and vote upon the proposal to elect three directors to Woodbridge’s board of directors to serve until the earlier of Woodbridge’s 2012 annual meeting of shareholders and the consummation of the merger as well as any other matters which may properly be brought before the meeting or any adjournment or postponement thereof. | ||
Q: | What are the voting rights of Woodbridge’s shareholders? | |
A: | Holders of Woodbridge’s Class A Common Stock and Class B Common Stock will vote as one class on each of the proposal relating to the merger agreement and the proposal relating to the election of directors. Holders of Woodbridge’s Class A Common Stock are entitled to one vote per share on each proposal, with all shares of Woodbridge’s Class A Common Stock representing in the aggregate 53% of the general voting power of Woodbridge. The number of votes represented by each share of Woodbridge’s Class B Common Stock, which represents in the aggregate 47% of the general voting power of Woodbridge, is calculated in accordance with Woodbridge’s Amended and Restated Articles of Incorporation. At the Woodbridge annual meeting, each outstanding share of Woodbridge’s Class B Common Stock will be entitled to votes on each of the proposal relating to the merger agreement and the proposal relating to the election of directors. | |
Q: | What are my choices when voting on the merger agreement? | |
A: | With respect to the vote on the merger agreement, you may vote for or against the merger agreement, or you may abstain from voting on the merger agreement. | |
Q: | What vote of Woodbridge’s shareholders is required to approve the merger agreement? | |
A: | Under the FBCA, approval of the merger agreement requires the affirmative vote of holders of shares of Woodbridge’s Class A Common Stock and Class B Common Stock representing a majority of the votes entitled to be cast on the proposal. Abstentions, failures to vote and “broker non-votes” will have the same effect as votes cast against the approval of the merger agreement. | |
BFC owns approximately 22% of the outstanding shares of Woodbridge’s Class A Common Stock and all of the outstanding shares of Woodbridge’s Class B Common Stock, representing approximately 59% of the total voting power of Woodbridge. BFC has agreed to vote its shares in favor of the merger agreement. As a result, the approval of the merger agreement by Woodbridge’s shareholders is assured. |
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Q: | Are any other shareholders of Woodbridge committed to vote for the approval of the merger agreement? | |
A: | Except for BFC’s agreement to vote its shares of Woodbridge’s Class A Common Stock and Class B Common Stock in favor of the merger agreement, there are no agreements or arrangements pursuant to which any shareholder of Woodbridge has committed to vote for or against the approval of the merger agreement. However, it is anticipated that BFC’s directors and executive officers, who collectively own less than 1% of the outstanding shares of Woodbridge’s Class A Common Stock (other than the shares beneficially owned through BFC), will vote their shares of Woodbridge’s Class A Common Stock in favor of the approval of the merger agreement although they are not required to do so. | |
Q: | What are my choices when voting on the election of directors? | |
A: | With respect to the vote on the election of directors, you may vote for all nominees, or your vote may be withheld with respect to one or more nominees. |
Q: | What is the recommendation of Woodbridge’s board of directors with respect to the merger agreement and the election of directors? |
A: | As described above and throughout this joint proxy statement/prospectus, the board of directors of Woodbridge recommends a vote “FOR” the approval of the merger agreement. The board of directors of Woodbridge also recommends a vote “FOR” the election of all of the nominees for director. |
Q: | What vote is required to approve the election of directors? | |
A: | The affirmative vote of a plurality of the votes cast at the Woodbridge annual meeting is required to approve the election of directors. A properly executed proxy marked “WITHHOLD AUTHORITY” with respect to the election of one or more directors will not be voted with respect to the director or directors indicated, although it will be counted for purposes of determining whether or not a quorum exists. | |
Q: | How many shares of Woodbridge’s Class A Common Stock and Class B Common Stock do Woodbridge’s executive officers and directors collectively own? | |
A: | Woodbridge’s executive officers and directors and their respective affiliates, which includes BFC, collectively own and are entitled to vote 3,848,530 shares, or approximately 23.1%, of Woodbridge’s Class A Common Stock. BFC beneficially owns all of the outstanding shares of Woodbridge’s Class B Common Stock. | |
Q: | What constitutes a quorum? | |
A: | A quorum will be present at the Woodbridge annual meeting, if shares representing a majority of the aggregate voting power of Woodbridge’s Class A Common Stock and Class B Common Stock outstanding on the Woodbridge record date are represented, in person or by proxy, at the meeting. | |
Q: | May I vote in person? | |
A: | If your shares of Woodbridge’s Class A Common Stock are registered directly in your name with Woodbridge’s transfer agent, you will be considered the shareholder of record of those shares, and the proxy materials and proxy card are being sent directly to you by Woodbridge. If you are a Woodbridge shareholder of record, you may attend the Woodbridge annual meeting and vote your shares in person, rather than signing and returning your proxy card or otherwise transmitting your voting instructions as described on the proxy card. | |
If your shares of Woodbridge’s Class A Common Stock are held in a brokerage account or by another nominee, you are considered the beneficial owner of shares held in “street name,” and the proxy materials are being forwarded to you together with a voting instruction card. As the beneficial owner, you are also invited to attend the Woodbridge annual meeting. Since a beneficial owner is not the shareholder of record, you may not vote these shares in person at the Woodbridge annual meeting unless you obtain a “legal proxy” from the broker, trustee or nominee that holds your shares, giving you the right to vote the shares in person. |
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Q: | If my shares are held in “street name” by my broker, will my broker vote my shares without instructions from me? |
A: | If your shares of Woodbridge’s Class A Common Stock are held in “street name” and you have not provided voting instructions to your broker or nominee, then whether your broker or nominee may vote your shares in its discretion depends on the proposals before the Woodbridge annual meeting. Your broker or nominee may vote your shares in its discretion on “routine matters.” The vote with respect to the merger agreement is not a “routine matter.” Accordingly, your broker will vote your shares for you on the merger agreement only if you provide instructions to your broker on how to vote your shares. You should follow the directions provided by your broker regarding how to instruct your broker to vote your shares. Without instructions, your shares will not be voted on the merger agreement and the “broker non-votes” of such shares will have the effect of a vote against the approval of the merger agreement. | |
The election of directors is a routine matter on which your broker or nominee will be permitted to vote your shares if no instructions are furnished. | ||
Q: | What happens if I do not attend the Woodbridge annual meeting and fail to return a proxy card or otherwise provide voting instructions? |
A: | The failure to return your proxy card or otherwise provide voting instructions will have the same effect as voting against the merger agreement, but will have no effect on the vote relating to the election of directors. |
Q: | What do I need to do now? | |
A: | After carefully reading and considering the information contained in this joint proxy statement/prospectus, please complete, sign and date your proxy and return it in the enclosed postage-paid return envelope or otherwise transmit your voting instructions as described on the proxy card so that your shares may be represented at the Woodbridge annual meeting. If you sign and send in your proxy and do not indicate how you want to vote, Woodbridge will count your proxy as a vote “FOR” the merger agreement and “FOR” each of the nominees for director. Additionally, although the board of directors of Woodbridge is not aware of any other matters to be presented at the Woodbridge annual meeting, if any other matters are properly brought before the meeting, the persons named in the enclosed proxy will vote the proxies in accordance with their judgment on those matters. | |
Q: | Can I change my vote after I have mailed my signed proxy? | |
A: | Yes. You can change your vote at any time before your proxy is voted at the Woodbridge annual meeting. If you are the record owner of your shares, you can do this in one of three ways. First, you can send a written notice to Woodbridge’s Secretary stating that you would like to revoke your proxy. Second, you can complete and submit by mail a new valid proxy bearing a later date or transmit new voting instructions by telephone or internet as described on the proxy card. Third, you can attend the Woodbridge annual meeting and vote in person; however, attendance at the Woodbridge annual meeting will not in and of itself constitute revocation of a previously executed proxy. | |
If you are not the record owner of your shares and your shares are held in “street name,” you must contact your broker, bank or other nominee to find out how to change your vote. | ||
Q: | Are there any other matters to be acted upon at the Woodbridge annual meeting? | |
A: | The board of directors of Woodbridge is not aware of any other matters to be presented or acted upon at the Woodbridge annual meeting. If any other matter is presented at the Woodbridge annual meeting on which a vote may properly be taken, the shares represented by proxies will be voted in accordance with the judgment of the person or persons voting those shares. |
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Q: | Who can help answer my questions? |
A: | If you are a Woodbridge shareholder, and would like additional copies, without charge, of this joint proxy statement/prospectus or if you have questions about the merger agreement or the election of directors, including the procedures for voting your shares on such proposals, you should call the information agent for the merger, Georgeson Inc., toll-free at (877)255-0124. |
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• | the approval of the merger and the related transactions and the merger agreement by BFC’s and Woodbridge’s shareholders, respectively; | |
• | the absence of any legal restraints or prohibitions preventing the completion of the merger or litigation or other proceeding seeking to enjoin or prohibit the merger; | |
• | the declaration by the SEC that the registration statement of which this joint proxy statement/prospectus is a part is effective and the absence of any stop order or proceeding, initiated or threatened in writing by the SEC, suspending or threatening to suspend such effectiveness; | |
• | the representations and warranties of each of BFC and Woodbridge contained in the merger agreement being true and correct, subject to certain materiality qualifications; |
• | neither BFC nor Woodbridge recording, or finding that it is reasonably likely to record, other-than-temporary impairment charges in an aggregate amount greater than $15 million; and |
• | holders of not more than 10% of the outstanding shares of Woodbridge’s Class A Common Stock duly and validly exercising, or remaining entitled to exercise, their appraisal rights in accordance with the FBCA. |
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• | if the requisite shareholder approvals are not obtained; |
• | if the merger has not been consummated by September 15, 2009 or, provided the parties are proceeding in good faith to consummate the merger, December 15, 2009; |
• | if such company’s financial advisor withdraws, revokes, annuls or materially modifies its fairness opinion; or | |
• | if the Woodbridge special committee or board of directors or the BFC board of directors determines to approve or recommend another acquisition or similar proposal after complying with the “no solicitation” provisions of the merger agreement or withholds or withdraws its recommendation of the merger agreement in a manner adverse to the other company. |
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Equivalent Value | ||||||||||||
Woodbridge’s | of | |||||||||||
BFC’s Class A | Class A | Woodbridge’s Class A | ||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||
July 2, 2009 | $ | 0.40 | $ | 1.10 | $ | 1.39 | ||||||
, 2009 | $ | [ ] | $ | [ ] | $ | [ ] |
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Six Months Ended | Year Ended | |||||||
June 30, 2009 | December 31, 2008 | |||||||
BFC HISTORICAL PER COMMON SHARE: | ||||||||
Loss from continuing operations per common share — basic and diluted | $ | (0.55 | ) | $ | (1.62 | ) | ||
Book value per common share | 2.14 | 2.50 | ||||||
Cash dividends per common share | N/A | N/A | ||||||
WOODBRIDGE HISTORICAL PER COMMON SHARE: | ||||||||
Income (loss) from continuing operations per common share — basic and diluted | $ | 0.91 | $ | (7.35 | ) | |||
Book value per common share | 8.43 | 7.07 | ||||||
Cash dividends per common share | N/A | N/A | ||||||
BFC UNAUDITED PRO FORMA COMBINED PER COMMON SHARE: | ||||||||
Loss from continuing operations per common share — basic and diluted | $ | (0.15 | ) | $ | (2.05 | ) | ||
Book value per common share | 2.28 | 2.26 | ||||||
Cash dividends per common share | N/A | N/A | ||||||
WOODBRIDGE UNAUDITED PRO FORMA EQUIVALENT PER COMMON SHARE: | ||||||||
Loss from continuing operations per common share — basic and diluted | $ | (0.52 | ) | $ | (7.11 | ) | ||
Book value per common share | 7.91 | 7.84 | ||||||
Cash dividends per common share | N/A | N/A |
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As of and for the | ||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||
Ended June 30, | As of and for the Years Ended December 31, | |||||||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||
(Dollars in thousands, except for per share data) | ||||||||||||||||||||||||||||
Statements of Operations Data: | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
BFC Activities | $ | 952 | 2,504 | 4,408 | 6,109 | 3,682 | 3,129 | 5,683 | ||||||||||||||||||||
Financial Services | 184,564 | 235,013 | 449,571 | 520,793 | 507,746 | 445,537 | 358,703 | |||||||||||||||||||||
Real Estate Development | 9,945 | 11,779 | 33,491 | 431,665 | 583,152 | 574,824 | 558,838 | |||||||||||||||||||||
195,461 | 249,296 | 487,470 | 958,567 | 1,094,580 | 1,023,490 | 923,224 | ||||||||||||||||||||||
Costs and Expenses | ||||||||||||||||||||||||||||
BFC Activities | 5,751 | 7,282 | 12,139 | 15,015 | 12,370 | 9,665 | 7,452 | |||||||||||||||||||||
Financial Services | 268,493 | 307,162 | 634,970 | 579,458 | 474,311 | 381,916 | 280,431 | |||||||||||||||||||||
Real Estate Development | 28,798 | 32,218 | 72,751 | 697,895 | 606,655 | 498,760 | 481,627 | |||||||||||||||||||||
303,042 | 346,662 | 719,860 | 1,292,368 | 1,093,336 | 890,341 | 769,510 | ||||||||||||||||||||||
Equity in earnings from unconsolidated affiliates | 17,250 | 3,246 | 15,064 | 12,724 | 10,935 | 13,404 | 19,603 | |||||||||||||||||||||
Impairment of unconsolidated affiliates | (20,401 | ) | — | (96,579 | ) | — | — | — | — | |||||||||||||||||||
Impairment of other investments | (2,396 | ) | — | (15,548 | ) | — | — | — | — | |||||||||||||||||||
Gain on settlement of investment in Woodbridge’s subsidiary | 40,369 | — | — | — | — | — | — | |||||||||||||||||||||
(Loss) income from continuing operations | ||||||||||||||||||||||||||||
before income taxes | (72,759 | ) | (94,120 | ) | (329,453 | ) | (321,077 | ) | 12,179 | 146,553 | 173,317 | |||||||||||||||||
(Benefit) provision for income taxes | — | (34,279 | ) | 15,763 | (69,012 | ) | (530 | ) | 59,566 | 70,917 | ||||||||||||||||||
(Loss) income from continuing operations | (72,759 | ) | (59,841 | ) | (345,216 | ) | (252,065 | ) | 12,709 | 86,987 | 102,400 | |||||||||||||||||
Discontinued operations, less income taxes | 4,201 | 1,019 | 16,605 | 7,160 | (10,535 | ) | 18,074 | 15,819 | ||||||||||||||||||||
Extraordinary gain, less income taxes | — | — | 9,145 | 2,403 | — | — | — | |||||||||||||||||||||
Net (loss) income | (68,558 | ) | (58,822 | ) | (319,466 | ) | (242,502 | ) | 2,174 | 105,061 | 118,219 | |||||||||||||||||
Less: Net (loss) income attributable to noncontrolling interest | 45,246 | 48,034 | 260,567 | 212,043 | (4,395 | ) | (92,287 | ) | (103,989 | ) | ||||||||||||||||||
Net (loss) income attributable to BFC | (23,312 | ) | (10,788 | ) | (58,899 | ) | (30,459 | ) | (2,221 | ) | 12,774 | 14,230 | ||||||||||||||||
Preferred stock dividends | (375 | ) | (375 | ) | (750 | ) | (750 | ) | (750 | ) | (750 | ) | (392 | ) | ||||||||||||||
Net (loss) income allocable to common stock | $ | (23,687 | ) | (11,163 | ) | (59,649 | ) | (31,209 | ) | (2,971 | ) | 12,024 | 13,838 | |||||||||||||||
Common Share Data(a),(b),(c) | ||||||||||||||||||||||||||||
Basic (loss) earnings per share of common stock: | ||||||||||||||||||||||||||||
Basic (loss) earnings per share from continuing operations | $ | (0.55 | ) | (0.25 | ) | (1.62 | ) | (0.90 | ) | (0.04 | ) | 0.24 | 0.48 | |||||||||||||||
Basic (loss) earnings per share from discontinued operations | 0.03 | — | 0.10 | 0.03 | (0.05 | ) | 0.18 | 0.09 | ||||||||||||||||||||
Basic (loss) earnings per share from extraordinary items | — | — | 0.20 | 0.06 | — | — | — | |||||||||||||||||||||
Basic (loss) earnings per share of common stock | $ | (0.52 | ) | (0.25 | ) | (1.32 | ) | (0.81 | ) | (0.09 | ) | 0.42 | 0.57 | |||||||||||||||
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As of and for the | ||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||
Ended June 30, | As of and for the Years Ended December 31, | |||||||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||
(Dollars in thousands, except for per share data) | ||||||||||||||||||||||||||||
Diluted (loss) earnings per share of common stock: | ||||||||||||||||||||||||||||
Diluted (loss) earnings per share from continuing operations | $ | (0.55 | ) | (0.25 | ) | (1.62 | ) | (0.90 | ) | (0.05 | ) | 0.22 | 0.40 | |||||||||||||||
Diluted (loss) earnings per share from discontinued operations | 0.03 | — | 0.10 | 0.03 | (0.05 | ) | 0.15 | 0.07 | ||||||||||||||||||||
Earnings per share from extraordinary items | — | — | 0.20 | 0.06 | — | — | — | |||||||||||||||||||||
Diluted (loss) earnings per share of common stock | $ | (0.52 | ) | (0.25 | ) | (1.32 | ) | (0.81 | ) | (0.10 | ) | 0.37 | 0.47 | |||||||||||||||
Basic weighted average number of common shares outstanding | 45,120 | 45,108 | 45,097 | 38,778 | 33,249 | 28,952 | 24,183 | |||||||||||||||||||||
Diluted weighted average number of common shares outstanding | 45,120 | 45,108 | 45,097 | 38,778 | 33,249 | 31,219 | 27,806 | |||||||||||||||||||||
Balance Sheet Data (at period end): | ||||||||||||||||||||||||||||
Loans and leases and held for sale, net | $ | 4,028,761 | 4,446,514 | 4,317,645 | 4,528,538 | 4,603,505 | 4,628,744 | 4,561,073 | ||||||||||||||||||||
Securities | $ | 690,596 | 1,227,418 | 979,417 | 1,191,173 | 1,081,980 | 1,064,857 | 1,082,985 | ||||||||||||||||||||
Total assets | $ | 5,812,997 | 7,165,501 | 6,395,582 | 7,114,433 | 7,605,766 | 7,395,755 | 6,954,847 | ||||||||||||||||||||
Deposits | $ | 4,055,047 | 3,879,300 | 3,919,796 | 3,953,405 | 3,867,036 | 3,752,676 | 3,457,202 | ||||||||||||||||||||
Securities sold under agreements to repurchase and federal funds purchased | $ | 25,068 | 127,924 | 279,726 | 159,905 | 128,411 | 249,263 | 362,002 | ||||||||||||||||||||
Other borrowings(d) | $ | 1,266,822 | 2,235,388 | 1,631,367 | 2,071,688 | 2,426,000 | 2,131,976 | 2,086,368 | ||||||||||||||||||||
BFC shareholders’ equity | $ | 96,527 | 172,146 | 112,867 | 184,037 | 177,585 | 183,080 | 125,251 | ||||||||||||||||||||
Noncontrolling interest | $ | 229,424 | 503,580 | 262,554 | 558,950 | 698,323 | 696,522 | 612,652 | ||||||||||||||||||||
Total equity | $ | 325,951 | 675,726 | 375,421 | 742,987 | 875,908 | 879,602 | 737,903 |
(a) | Since its inception, BFC has not paid any cash dividends on its common stock. | |
(b) | While BFC has two classes of common stock outstanding, the two-class method is not presented because BFC’s capital structure does not provide for different dividend rates or other preferences, other than voting rights, between the two classes. | |
(c) | Prior to the merger of I.R.E. Realty Advisory Group, Inc. (“I.R.E. RAG”) with and into BFC in November 2007, I.R.E. RAG owned 4,764,285 shares of BFC’s Class A Common Stock and 500,000 shares of BFC’s Class B Common Stock. Those shares of BFC’s Class A Common Stock and Class B Common Stock were considered to be outstanding; however, because BFC owned 45.5% of I.R.E. RAG’s common stock, 2,165,367 shares of BFC’s Class A Common Stock and 227,250 shares of BFC’s Class B Common Stock were eliminated from the number of outstanding shares for purposes of computing earnings per share. | |
(d) | Other borrowings consist of FHLB advances, subordinated debentures, notes, bonds payable, secured borrowings and junior subordinated debentures. Secured borrowings were recognized on loan participation agreements that constituted a legal sale of a portion of the loan but that were not qualified to be accounted for as a loan sale. |
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As of and for the | ||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||
Ended June 30, | As of and for the Years Ended December 31, | |||||||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 5,921 | 14,403 | 9,218 | 17,999 | 17,815 | 26,683 | 1,520 | ||||||||||||||||||||
Investment securities | 20,598 | 20,819 | 16,523 | 20,862 | 22,262 | 22,034 | 11,800 | |||||||||||||||||||||
Investment in venture partnerships | 346 | 428 | 361 | 864 | 908 | 950 | 971 | |||||||||||||||||||||
Investment in BankAtlantic Bancorp, Inc. | 43,742 | 96,031 | 66,326 | 108,173 | 113,586 | 112,218 | 103,125 | |||||||||||||||||||||
Investment in Woodbridge Holdings Corporation | 41,120 | 50,595 | 35,575 | 54,637 | 57,009 | 58,111 | 48,983 | |||||||||||||||||||||
Investment in and advances to wholly-owned subsidiaries | 2,241 | 2,691 | 2,323 | 1,578 | 1,525 | 1,631 | 31,867 | |||||||||||||||||||||
Loans receivable | — | — | — | 3,782 | 2,157 | 2,071 | 3,364 | |||||||||||||||||||||
Other assets | 1,252 | 1,145 | 835 | 906 | 2,261 | 960 | 2,697 | |||||||||||||||||||||
Total assets | $ | 115,220 | 186,112 | 131,161 | 208,801 | 217,523 | 224,658 | 204,327 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
Notes payable | $ | — | — | — | — | — | — | 10,483 | ||||||||||||||||||||
Advances from and negative basis in wholly-owned subsidiaries | 798 | 1,088 | 789 | 3,174 | 1,290 | 462 | 34,636 | |||||||||||||||||||||
Other liabilities | 6,866 | 6,786 | 6,476 | 7,722 | 7,351 | 7,417 | 6,929 | |||||||||||||||||||||
Deferred income taxes | — | 6,092 | — | 13,868 | 31,297 | 33,699 | 27,028 | |||||||||||||||||||||
Total liabilities | 7,664 | 13,966 | 7,265 | 24,764 | 39,938 | 41,578 | 79,076 | |||||||||||||||||||||
Redeemable 5% Cumulative Preferred Stock | 11,029 | — | 11,029 | — | — | — | — | |||||||||||||||||||||
Total BFC shareholders’ equity | 96,527 | 172,146 | 112,867 | 184,037 | 177,585 | 183,080 | 125,251 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 115,220 | 186,112 | 131,161 | 208,801 | 217,523 | 224,658 | 204,327 | ||||||||||||||||||||
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As of and for the | ||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||
Ended June 30, | As of and for the Years Ended December 31, | |||||||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Statements of Operations Data: | ||||||||||||||||||||||||||||
Revenues | $ | 616 | 1,137 | 2,489 | 3,977 | 2,232 | 1,775 | 3,514 | ||||||||||||||||||||
Expenses | 4,035 | 4,813 | 11,405 | 9,565 | 8,413 | 14,904 | 6,717 | |||||||||||||||||||||
(Loss) before earnings (loss) from subsidiaries | (3,419 | ) | (3,676 | ) | (8,916 | ) | (5,588 | ) | (6,181 | ) | (13,129 | ) | (3,203 | ) | ||||||||||||||
Equity from (loss) earnings in BankAtlantic Bancorp | (24,823 | ) | (10,342 | ) | (56,230 | ) | (7,206 | ) | 5,807 | 9,053 | 11,817 | |||||||||||||||||
Equity from (loss) earnings in Woodbridge Holdings Corporation | 3,771 | (3,861 | ) | (22,261 | ) | (39,622 | ) | (1,522 | ) | 9,125 | 10,265 | |||||||||||||||||
Equity from (loss) earnings in other subsidiaries | (99 | ) | (117 | ) | 15 | (1,083 | ) | (658 | ) | 6,671 | (35 | ) | ||||||||||||||||
(Loss) income from continuing operations before income taxes | (24,570 | ) | (17,996 | ) | (87,392 | ) | (53,499 | ) | (2,554 | ) | 11,720 | 18,844 | ||||||||||||||||
(Benefit) provision for income taxes | — | (7,046 | ) | (14,887 | ) | (19,599 | ) | (1,857 | ) | 4,000 | 6,826 | |||||||||||||||||
(Loss) income from continuing operations | (24,570 | ) | (10,950 | ) | (72,505 | ) | (33,900 | ) | (697 | ) | 7,720 | 12,018 | ||||||||||||||||
Discontinued operations, net of taxes | 1,258 | 162 | 4,461 | 1,038 | (1,524 | ) | 5,054 | 2,212 | ||||||||||||||||||||
Extraordinary gain, net of taxes | — | — | 9,145 | 2,403 | — | — | — | |||||||||||||||||||||
Net (loss) income attributable to BFC | (23,312 | ) | (10,788 | ) | (58,899 | ) | (30,459 | ) | (2,221 | ) | 12,774 | 14,230 | ||||||||||||||||
Preferred stock dividends | (375 | ) | (375 | ) | (750 | ) | (750 | ) | (750 | ) | (750 | ) | (392 | ) | ||||||||||||||
Net (loss) income allocable to common stock | $ | (23,687 | ) | (11,163 | ) | (59,649 | ) | (31,209 | ) | (2,971 | ) | 12,024 | 13,838 | |||||||||||||||
Statements of Cash Flow Data: | ||||||||||||||||||||||||||||
Operating Activities: | ||||||||||||||||||||||||||||
Net (loss) income | $ | (23,312 | ) | (10,788 | ) | (58,899 | ) | (30,459 | ) | (2,221 | ) | 12,774 | 14,230 | |||||||||||||||
Other operating activities | 20,306 | 7,034 | 53,391 | 25,954 | (820 | ) | (12,709 | ) | (18,243 | ) | ||||||||||||||||||
Net cash (used in) provided by operating activities | (3,006 | ) | (3,754 | ) | (5,508 | ) | (4,505 | ) | (3,041 | ) | 65 | (4,013 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | 84 | 533 | (2,469 | ) | (30,869 | ) | (923 | ) | (10,029 | ) | (9,577 | ) | ||||||||||||||||
Net cash (used in) provided by financing activities | (375 | ) | (375 | ) | (804 | ) | 35,558 | (4,904 | ) | 35,127 | 13,574 | |||||||||||||||||
(Decrease) increase in cash and cash equivalents | (3,297 | ) | (3,596 | ) | (8,781 | ) | 184 | (8,868 | ) | 25,163 | (16 | ) | ||||||||||||||||
Cash at beginning of period | 9,218 | 17,999 | 17,999 | 17,815 | 26,683 | 1,520 | 1,536 | |||||||||||||||||||||
Cash at end of period | $ | 5,921 | 14,403 | 9,218 | 17,999 | 17,815 | 26,683 | 1,520 | ||||||||||||||||||||
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As of and for the | ||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||
Ended June 30, | As of and for the Year Ended December 31, | |||||||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
Consolidated Operations: | ||||||||||||||||||||||||||||
Revenues from sales of real estate | $ | 3,194 | 2,549 | 13,837 | 410,115 | 566,086 | 558,112 | 549,652 | ||||||||||||||||||||
Cost of sales of real estate(a) | $ | 1,994 | 1,786 | 12,728 | 573,241 | 482,961 | 408,082 | 406,274 | ||||||||||||||||||||
Margin(a) | $ | 1,200 | 763 | 1,109 | (163,126 | ) | 83,125 | 150,030 | 143,378 | |||||||||||||||||||
Earnings from Bluegreen Corporation | $ | 17,050 | 1,737 | 8,996 | 10,275 | 9,684 | 12,714 | 13,068 | ||||||||||||||||||||
Selling, general & administrative expenses | $ | 21,103 | 25,579 | 50,754 | 117,924 | 121,151 | 87,639 | 71,001 | ||||||||||||||||||||
Impairment of investment in Bluegreen Corporation | $ | (20,401 | ) | — | (94,426 | ) | — | — | — | — | ||||||||||||||||||
Impairment of other investments | $ | (2,396 | ) | — | (14,120 | ) | — | — | — | — | ||||||||||||||||||
Gain on settlement of investment in subsidiary(f) | $ | 40,369 | — | — | — | — | — | — | ||||||||||||||||||||
Net income (loss) | $ | 15,452 | (19,373 | ) | (140,331 | ) | (234,620 | ) | (9,164 | ) | 54,911 | 57,415 | ||||||||||||||||
Basic earnings (loss) per common share(e) | $ | 0.91 | (1.01 | ) | (7.35 | ) | (30.00 | ) | (2.27 | ) | 13.58 | 15.19 | ||||||||||||||||
Diluted earnings (loss) per common share(b)(e) | $ | 0.91 | (1.01 | ) | (7.35 | ) | (30.00 | ) | (2.29 | ) | 13.44 | 14.91 | ||||||||||||||||
Basic weighted average common shares outstanding (thousands)(c)(e) | $ | 16,890 | 19,255 | 19,088 | 7,821 | 4,045 | 4,044 | 3,779 | ||||||||||||||||||||
Diluted weighted average common shares outstanding (thousands)(c)(e) | $ | 16,890 | 19,255 | 19,088 | 7,821 | 4,045 | 4,067 | 3,792 | ||||||||||||||||||||
Dividends declared per common share(e) | $ | — | — | — | 0.10 | 0.40 | 0.40 | 0.20 | ||||||||||||||||||||
Consolidated Financial Condition Data: | ||||||||||||||||||||||||||||
Cash | $ | 58,158 | 125,307 | 114,798 | 195,181 | 48,391 | 113,562 | 125,522 | ||||||||||||||||||||
Inventory of real estate | $ | 243,564 | 242,185 | 241,318 | 227,290 | 822,040 | 611,260 | 413,471 | ||||||||||||||||||||
Investment in Bluegreen Corporation | $ | 28,580 | 117,365 | 29,789 | 116,014 | 107,063 | 95,828 | 80,572 | ||||||||||||||||||||
Total assets | $ | 530,265 | 673,711 | 559,254 | 712,851 | 1,090,666 | 895,673 | 678,467 | ||||||||||||||||||||
Total debt | $ | 348,516 | 338,565 | 349,952 | 353,790 | 615,703 | 407,970 | 268,226 | ||||||||||||||||||||
Total liabilities | $ | 384,252 | 432,851 | 439,724 | 451,745 | 747,427 | 545,887 | 383,678 | ||||||||||||||||||||
Shareholders’ equity | $ | 146,013 | 240,860 | 119,530 | 261,106 | 343,239 | 349,786 | 294,789 | ||||||||||||||||||||
Book value per share(d) | $ | 8.43 | 12.51 | 7.07 | 13.56 | 86.50 | 88.17 | 74.33 |
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(a) | Margin is calculated as sales of real estate minus cost of sales of real estate. Included in cost of sales of real estate for the year ended December 31, 2008 is an impairment charge associated with the Carolina Oak homebuilding project in the amount of $3.5 million. Additionally, included in cost of sales of real estate for the years ended December 31, 2007 and 2006 are homebuilding inventory impairment charges and write-offs of deposits and pre-acquisition costs of $206.4 million and $31.1 million, respectively, in Woodbridge’s Primary Homebuilding segment. In Woodbridge’s Tennessee Homebuilding segment, impairment charges amounted to $11.2 million and $5.7 million in the years ended December 31, 2007 and 2006, respectively, which were included in cost of sales. Woodbridge’s Primary Homebuilding segment and Tennessee Homebuilding segment were part of Levitt and Sons, LLC (“Levitt and Sons”), Woodbridge’s formerly wholly-owned subsidiary which filed a voluntary bankruptcy petition in November 2007. |
(b) | Diluted earnings (loss) per share takes into account the dilutive effect of Woodbridge’s stock options and restricted stock using the treasury stock method, and the dilution in earnings Woodbridge recognizes as a result of outstanding Bluegreen securities that entitle the holders thereof to acquire shares of Bluegreen’s common stock. | |
(c) | The weighted average number of common shares outstanding in basic and diluted earnings (loss) per common share for 2006, 2005 and 2004 were retroactively adjusted for the number of shares representing the bonus element arising from Woodbridge’s 2007 rights offering. In connection with the rights offering, shares of Woodbridge’s Class A Common Stock were issued on October 1, 2007 at a purchase price below the market price of such stock on that date, resulting in the bonus element of 1.97%. The number of weighted average shares of Class A Common Stock was retroactively increased by this percentage for 2006, 2005 and 2004. | |
(d) | Book value per share is calculated as Woodbridge shareholders’ equity divided by total number of shares outstanding as of each period presented. | |
(e) | On September 26, 2008, Woodbridge effected aone-for-five reverse stock split, pursuant to which each five shares of Woodbridge’s Class A Common Stock then outstanding automatically converted into one share of Class A Common Stock, and each five shares of Woodbridge’s Class B Common Stock then outstanding automatically converted into one share of Class B Common Stock. Accordingly, all share and per share data presented herein for prior periods have been retroactively adjusted to reflect the reverse stock split. |
(f) | Represents the cost of settlement and related liability which was recognized into income during the six months ended June 30, 2009 in connection with the March 3, 2009 consummation of the settlement agreement relating to the bankruptcy of Levitt and Sons, as described throughout this joint proxy statement/prospectus. |
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Six Months Ended | Year Ended | |||||||
June 30, 2009 | December 31, 2008 | |||||||
(In thousands, except per share data) | (In thousands, except per share data) | |||||||
Statement of Operations Data: | ||||||||
Revenues | $ | 195,461 | $ | 487,470 | ||||
Net loss from continuing operations attributable to BFC | $ | (12,756 | ) | $ | (183,312 | ) | ||
Net loss after dividends on preferred stock | $ | (13,131 | ) | $ | (184,562 | ) | ||
Net loss per common share — basic and diluted | $ | (0.15 | ) | $ | (2.05 | ) | ||
Weighted average shares outstanding — basic and diluted | 89,889 | 89,866 |
As of | ||||
June 30, 2009 | ||||
(In thousands) | ||||
Balance Sheet Data: | ||||
Loans receivable and held for sale, net | $ | 4,028,761 | ||
Securities | $ | 690,596 | ||
Total assets | $ | 5,812,252 | ||
Deposits | $ | 4,055,047 | ||
Securities sold under agreements to repurchase and federal funds purchased | $ | 25,068 | ||
Total liabilities | $ | 5,476,017 | ||
BFC shareholders’ equity | $ | 204,572 | ||
Noncontrolling interests | $ | 120,634 | ||
Total equity | $ | 325,206 |
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• | limit transactions between BFC, BankAtlantic, BankAtlantic Bancorp and the subsidiaries or affiliates of either; | |
• | limit the activities of BankAtlantic, BankAtlantic Bancorp or BFC; or |
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• | impose capital requirements on BFC or BankAtlantic Bancorp. |
• | general economic conditions, and the disruptions in the financial markets which have adversely impacted consumer spending patterns and the availability and cost of credit may continue to impact Benihana or deteriorate further; | |
• | the failure of existing or new restaurants to perform as expected; | |
• | the inability to construct new restaurants and remodel existing restaurants within projected budgets and time periods; | |
• | increases in the minimum wage; | |
• | intense competition in the restaurant industry; | |
• | the food service industry is affected by litigation and publicity concerning food quality, health and other issues which could cause customers to avoid a particular restaurant, result in significant liabilities or litigation costs or damage reputation or brand recognition; and | |
• | implementing growth and renovation strategies may strain available resources. |
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• | overbuilding or decreases in demand to acquire land; | |
• | the availability and cost of financing; | |
• | unfavorable interest rates and increases in inflation; | |
• | changes in national, regional and local economic conditions; | |
• | cost overruns, inclement weather, and labor and material shortages; | |
• | the impact of present or future environmental legislation, zoning laws and other regulations; | |
• | availability, delays and costs associated with obtaining permits, approvals or licenses necessary to develop property; and | |
• | increases in real estate taxes, insurance and other local government fees. |
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• | the risk that a significant tenant or a number of tenants may file for bankruptcy protection, creating the possibility that past due rents may never be recovered; | |
• | the risk that leases with certain existing tenants may become overly burdensome to the lessee due to reduced business activity, and lease concessions and modifications may be necessary to avoid defaults; | |
• | the risk that the current adverse economic conditions and limited availability of credit may continue or deteriorate further, causing market capitalization rates on commercial properties to increase beyond present levels, thus reducing the value at which commercial projects can be sold; | |
• | the risk that net operating income at the commercial leasing projects may not be sufficient to meet certain debt service coverage ratio requirements, which would result in requirements for additional principal curtailment payments in order to bring the loans into compliance; and | |
• | the risk that vacant space will take longer to lease and that rental rates will be lower than projected or necessary to operate the project profitably. |
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• | shortages or increases in prices of construction materials; | |
• | natural disasters in the areas in which it operates; | |
• | lack of availability of adequate utility infrastructure and services; and | |
• | its need to rely on local subcontractors who may not be adequately capitalized or insured. |
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• | environmental matters, including the presence of hazardous or toxic substances; | |
• | wetland preservation; |
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• | health and safety; | |
• | zoning, land use and other entitlements; | |
• | building design; and | |
• | density levels. |
• | the installation of utility services such as gas, electric, water and waste disposal; | |
• | the dedication of acreage for open space, parks and schools; | |
• | permitted land uses; and | |
• | the construction design, methods and materials used. |
• | establish building moratoriums; | |
• | limit the number of commercial properties that may be built; | |
• | change building codes and construction requirements affecting property under construction; | |
• | increase the cost of development and construction; and | |
• | delay development and construction. |
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• | the cyclical nature of the real estate industry; | |
• | prevailing interest rates and the availability of financing; | |
• | weather; | |
• | cost and availability of materials and labor; | |
• | competitive conditions; | |
• | timing of sales of land; | |
• | the timing of receipt of regulatory and other governmental approvals for land development projects; and | |
• | the timing of the sale of its commercial leasing operations. |
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• | BankAtlantic’s borrowers may be unable to make timely repayments of their loans, or the value of real estate collateral securing the payment of such loans may decrease which could result in increased delinquencies, foreclosures and customer bankruptcies, any of which would increase levels of non-performing loans resulting in significant credit losses, increased expenses and could have a material adverse effect on our operating results. |
• | Further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations, may result in an inability to borrow on favorable terms or at all from other financial institutions or government entities. |
• | Increased regulation of the industry may increase costs and limit BankAtlantic’s activities and operations. |
• | Increased competition among financial services companies based on the recent consolidation of competing financial institutions and the conversion of investment banks into bank holding companies, may adversely affect BankAtlantic’s ability to market its products and services. |
• | BankAtlantic may be required to pay significantly higher FDIC deposit premiums and assessments. |
• | Consumer confidence in the financial industry has weakened and individual wealth has deteriorated, which could lead to declines in deposits and impact liquidity. |
• | Continued asset valuation declines could adversely impact our credit losses and result in additional goodwill and other asset impairments. |
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• | the risk characteristics of various classifications of loans; |
• | previous loan loss experience; |
• | specific loans that have probable loss potential; |
• | delinquency trends; |
• | estimated fair value of the collateral; |
• | current economic conditions; |
• | the views of its regulators; and |
• | geographic and industry loan concentrations. |
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• | interest income on interest-earning assets, such as loans; and |
• | interest expense on interest-bearing liabilities, such as deposits. |
• | it amortizes premiums on acquired loans and securities, and if loans or securities are prepaid, the unamortized premium will be charged off; and |
• | the yields it earns on the investment of funds that it receives from prepaid loans and securities are generally less than the yields that it earned on the prepaid loans. |
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• | delivering to BFC’s Secretary a signed, written notice of revocation bearing a date later than the date of the previously executed proxy, stating that the proxy is revoked; | |
• | signing and delivering a new proxy, relating to the same shares and bearing a later date, or transmitting new voting instructions by telephone or internet as described on the proxy card; or | |
• | attending the meeting and voting in person, although attendance at the meeting will not, by itself, revoke a proxy. |
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• | delivering to Woodbridge’s Secretary a signed, written notice of revocation bearing a date later than the date of the previously executed proxy, stating that the proxy is revoked; | |
• | signing and delivering a new proxy, relating to the same shares and bearing a later date, or transmitting new voting instructions by telephone or internet as described on the proxy card; or | |
• | attending the Woodbridge annual meeting and voting in person, although attendance at the Woodbridge annual meeting will not, by itself, revoke a proxy. |
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• | the fact that, based on BFC’s financial portfolio as of March 31, 2009, upon consummation of the merger, BFC will realize an increase in BFC shareholders’ equity from approximately $104.5 million to approximately $206.8 million; | |
• | the fact that, based on share and market price information as of July 2, 2009, the date of the merger agreement, upon consummation of the merger, BFC will realize an increase in unaffiliated public float from approximately 28.5 million shares to approximately 72.9 million shares and an increase in global market capitalization from approximately $18.1 million to approximately $36.0 million; | |
• | the fact that the merger will result in tax consolidation, thereby eliminating the potential for “double taxation” on BFC’s share of Woodbridge’s earnings; | |
• | the potential increased visibility and trading liquidity for BFC’s capital stock resulting from the merger; |
• | the efficiencies that could be realized as a result of the merger in legal, accounting and internal audit fees as well as fees relating to SEC reporting; |
• | the opinion of JMP Securities, BFC’s financial advisor, to the effect that, as of the date of the opinion, and subject to and based on the qualifications and assumptions set forth in the opinion, the exchange ratio was fair, from a financial point of view, to BFC’s shareholders (see “The Merger — Opinion of BFC’s Financial Advisor’’); |
• | the limited business integration risks due to the preexisting relationships between BFC and Woodbridge, including, without limitation, management commonality and BFC’s long-term investment in Woodbridge; | |
• | current financial market conditions and historical market prices, volatility and trading information with respect to BFC’s Class A Common Stock and Woodbridge’s Class A Common Stock; and | |
• | the belief that the terms of the merger agreement, including the parties’ respective representations, warranties and covenants contained therein, are reasonable. |
• | the substantial costs to be incurred in connection with the merger, including transaction expenses arising from the merger, whether or not the merger is consummated; |
• | the risks relating to Woodbridge’s and Core Communities’ outstanding debt, including the risk that certain of such debt may need to be restructured in the near future (which may not be possible on favorable terms or at all) and the risk of future impairment charges relating to Woodbridge’s assets, and specifically Core’s assets; |
• | the risk that the current economic downturn, if prolonged, may continue to have an adverse impact on Woodbridge’s financial condition and operating results; | |
• | the potential negative impact on BFC’s cash flow if a significant amount of Woodbridge’s shareholders exercise their appraisal rights; | |
• | the risks inherent in the fluctuating market price of BFC’s Class A Common Stock, such as the risk that the value of the shares of BFC’s Class A Common Stock issuable in connection with merger at the effective time of the merger may exceed the value of those shares as of the date on which the board of directors of BFC approved the merger; | |
• | possible disruptions to BFC’s operations and management distractions that could arise from the merger; |
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• | the possibility that the expected benefits from the merger described above may not be realized; | |
• | the limitations imposed in the merger agreement on the solicitation or consideration by BFC of alternative business combinations prior to the consummation of the merger; |
• | the interests that certain executive officers and directors of BFC have with respect to the merger in addition to their interests as shareholders of BFC generally, as described under “The Merger — Interests of Certain Persons in the Merger;” and |
• | various other risks associated with the merger set forth under the section entitled “Risk Factors.” |
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• | the fact that shareholders of Woodbridge (other than BFC) will own approximately 54% of the outstanding shares of BFC’s Class A Common Stock and approximately 50% of BFC’s total common equity immediately following the merger (subject to reduction to the extent shareholders elect to exercise and perfect their appraisal rights) and will therefore have a significant economic interest in BFC; | |
• | the implied value of Woodbridge’s Class A Common Stock of $1.39 per share based on the closing prices of BFC’s Class A Common Stock and Woodbridge’s Class A Common Stock on the Pink Sheets on July 2, 2009, the last trading day prior to the announcement of the signing of the merger agreement, representing a premium of approximately 26% over the closing price of Woodbridge’s Class A Common Stock on that day, and a premium of approximately 67% over the average market price of Woodbridge’s Class A Common Stock during the six-month period preceding the date of the merger agreement; | |
• | the fact that Woodbridge’s shareholders, as a result of the merger and the exchange of their shares of Woodbridge’s Class A Common Stock for BFC’s Class A Common Stock, will hold shares in a company with a more diversified portfolio of assets, which is consistent with Woodbridge’s stated objective of diversification; | |
• | the fact that, based on share and market price information as of July 2, 2009, the date of the merger agreement, BFC, after the merger, will have a pro forma market capitalization of approximately $36.0 million compared to Woodbridge’s stand-alone market capitalization of $18.6 million; | |
• | the limited business integration risks due to the preexisting relationships between BFC and Woodbridge, including, without limitation, management commonality and BFC’s long-term investment in Woodbridge; |
• | the efficiencies that could be realized as a result of the merger in legal, accounting and internal audit fees as well as fees relating to SEC reporting; |
• | the fact that, as of March 31, 2009, Woodbridge had a debt-to-total capitalization ratio of approximately 67% and that BFC currently has no outstanding long-term debt at its parent company level and, therefore, may have greater access to financial resources; |
• | the opinion of Ewing, Woodbridge’s financial advisor, to the effect that, as of the date of the opinion and subject to and based on the qualifications, limitations and assumptions set forth in the opinion, the consideration to be received by holders of Woodbridge’s Class A Common Stock in the merger was fair, from a financial point of view, to such holders (see “The Merger — Opinion of Woodbridge’s Financial Advisor”); |
• | current financial market conditions and historical market prices, volatility and trading information with respect to BFC’s Class A Common Stock and Woodbridge’s Class A Common Stock; | |
• | the opportunity for holders of Woodbridge’s Class A Common Stock to benefit from any increase in the trading price of BFC’s Class A Common Stock between the date of the merger agreement and the effective time of the merger because the exchange ratio is fixed; | |
• | the absence of any termination fee payable by Woodbridge to BFC if the merger agreement is terminated prior to completion of the merger; |
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• | the fact that, in connection with the merger, the seven directors of Woodbridge who are not currently directors of BFC (as well as Seth Wise, the President of Woodbridge) are to be appointed to BFC’s board of directors, which is expected to provide a degree of continuity and involvement by directors of Woodbridge in BFC following the merger; | |
• | the expected qualification of the merger as a “reorganization” within the meaning of Section 368(a) of the Code, resulting in the shares of BFC’s Class A Common Stock to be received by holders of Woodbridge’s Class A Common Stock in connection with the merger not being subject to federal income tax, as described under the section entitled “The Merger — Material U.S. Federal Income Tax Consequences of the Merger”; and | |
• | the belief that the terms of the merger agreement, including the parties’ respective representations, warranties and covenants contained therein, are reasonable. |
• | the substantial costs to be incurred in connection with the merger, including transaction expenses arising from the merger, whether or not the merger is consummated; | |
• | the possibility that holders of Woodbridge’s Class A Common Stock could be adversely affected by a decrease in the trading price of BFC’s Class A Common Stock between the date of the merger agreement and the effective time of the merger; | |
• | possible disruptions to Woodbridge’s operations and management distractions that could arise from the merger; | |
• | the possibility that the expected benefits from the merger described above may not be realized, including the fact that BFC’s potentially greater access to financial resources may not be realized and BFC’s cash flow may be negatively impacted as a result of Woodbridge’s shareholders exercising their appraisal rights or otherwise; | |
• | the limitations imposed in the merger agreement on the solicitation or consideration by Woodbridge of alternative business combinations prior to the consummation of the merger and the fact that Woodbridge did not seek out any alternative transactions prior to signing the merger agreement; |
• | the interests that certain executive officers and directors of Woodbridge have with respect to the merger in addition to their interests as shareholders of Woodbridge generally, as described under “The Merger — Interests of Certain Persons in the Merger;” |
• | the fact that holders of Woodbridge’s Class A Common Stock who receive shares of BFC’s Class A Common Stock in the merger will become subject to the risks inherent to businesses in the diverse mix of industries in which BFC has investments, including, primarily, the banking industry, which has been adversely impacted by the current economic downturn; and |
• | various other risks associated with the merger and the operations of BFC following the merger set forth under the section entitled “Risk Factors.” |
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• | reviewed certain publicly available financial statements and other business and financial information of BFC and Woodbridge; | |
• | reviewed the reported prices and trading activity for BFC’s and Woodbridge’s respective Class A Common Stock; | |
• | compared the financial performance of BFC and the prices and trading activity of BFC’s Class A Common Stock with that of certain other publicly-traded companies that it believed were generally comparable to BFC; | |
• | compared the financial performance of Woodbridge and the prices and trading activity of Woodbridge’s Class A Common Stock with that of certain other publicly-traded companies that it believed were generally comparable to Woodbridge; | |
• | reviewed the financial terms, to the extent publicly available, of certain merger transactions that it believed were generally comparable to the proposed merger between BFC and Woodbridge; | |
• | participated in discussions among representatives of BFC and Woodbridge and their respective legal advisors; | |
• | reviewed the July 1, 2009 draft of the merger agreement and certain other related documents which BFC provided to it; and | |
• | considered such other factors, and performed such other analysis, as it deemed appropriate. |
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• | a contribution analysis (i) for the three month period ended March 31, 2009 and (ii) for the twelve month period ended December 31, 2008; | |
• | a comparable public company analysis (which was based on public company peer group trading valuations); | |
• | an exchange ratio analysis (which was based on the relative stock price performance of Woodbridge’s and BFC’s respective Class A Common Stock); and | |
• | a premiums paid analysis (which was based on precedent comparable transactions). |
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Shareholders’ | ||||||||||||||||||||||||||||
Revenue | % Total | Assets | % Total | Equity | % Total | |||||||||||||||||||||||
Woodbridge | $ | 3.3 | 92 | % | Woodbridge | $ | 400.6 | 77 | % | Woodbridge | $ | 103.5 | 50 | % | ||||||||||||||
BFC | 0.3 | 8 | % | BFC | 122.8 | 23 | % | BFC | 104.5 | 50 | % | |||||||||||||||||
Total | $ | 3.6 | Total | $ | 523.4 | Total | $ | 207.9 | ||||||||||||||||||||
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Shareholders’ | ||||||||||||||||||||||||||||
Revenue | % Total | Assets | % Total | Equity | % Total | |||||||||||||||||||||||
Woodbridge | $ | 19.5 | 89 | % | Woodbridge | $ | 427.4 | 77 | % | Woodbridge | $ | 91.4 | 45 | % | ||||||||||||||
BFC | 2.5 | 11 | % | BFC | 131.2 | 23 | % | BFC | 112.9 | 55 | % | |||||||||||||||||
Total | $ | 22.0 | Total | $ | 558.6 | Total | $ | 204.2 |
Price/Tangible Book Value Multiple | ||||||||||
Land Developers | ||||||||||
Avatar Holdings | ||||||||||
Brookfield Homes | Mean | 0.90x | ||||||||
California Coastal Communities | Median | 0.44x | ||||||||
The St. Joe Companies | ||||||||||
Banks and Thrifts | ||||||||||
Bancorp South | ||||||||||
BankAtlantic Bancorp | ||||||||||
Colonial BancGroup | ||||||||||
First Citizens BancShares | ||||||||||
Hancock Holding Company | Mean | 0.92x | ||||||||
Seacoast Banking Crop. of Florida | Median | 1.04x | ||||||||
South Financial Group | ||||||||||
Trustmark Corporation | ||||||||||
United Bankshares | ||||||||||
United Community Banks | ||||||||||
WesBanco |
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Fully | ||||||||||||||||||||
Share Price | Diluted | Market | Tangible | Price / | ||||||||||||||||
6/30/09 | Shares(1) | Cap.(1) | Book Value | Tang. B V | ||||||||||||||||
BFC Financial Corporation(2) | $ | 0.41 | 45.1 | $ | 18.5 | $ | 104.5 | 0.18x |
(1) | Fully diluted shares outstanding is calculated using the Treasury Stock Method and accounts for in-the-money outstanding options and warrants. | |
(2) | Excludes goodwill associated with consolidation of BFC’s investments in subsidiaries. |
Price/Tangible Book Value Multiple | ||||||||||
Timeshare Operators | ||||||||||
Bluegreen Corporation | Mean | 0.23x | ||||||||
Silverleaf Resorts | Median | 0.23x | ||||||||
Land Developers | ||||||||||
Avatar Holdings | ||||||||||
Brookfield Homes | Mean | 0.90x | ||||||||
California Coastal Communities | Median | 0.44x | ||||||||
The St. Joe Companies |
Fully | ||||||||||||||||||||
Share Price | Diluted | Market | Tangible | Price / | ||||||||||||||||
6/30/09 | Shares(1) | Cap.(1) | Book Value | Tang. B V | ||||||||||||||||
Woodbridge Holdings Corporation | $ | 1.10 | 16.9 | $ | 18.6 | $ | 130.1 | 0.14x |
(1) | Fully diluted shares outstanding is calculated using the Treasury Stock Method and accounts for in-the-money outstanding options and warrants. |
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Closing Stock Price | Implied | |||||||||||
Time Period | Woodbridge | BFC | Exchange Ratio | |||||||||
10-trading day average | $ | 1.15 | $ | 0.43 | 2.70 | x | ||||||
30-trading day average | $ | 1.43 | $ | 0.42 | 3.42 | x | ||||||
60-trading day average | $ | 1.09 | $ | 0.37 | 2.94 | x | ||||||
120-trading day average | $ | 0.88 | $ | 0.28 | 3.18 | x | ||||||
180-trading day average | $ | 0.84 | $ | 0.29 | 2.96 | x | ||||||
240-trading day average | $ | 1.53 | $ | 0.36 | 4.21 | x |
Announcement | Target | Acquiror | ||
11/29/07 | Columbia Financial Corp. | CCFNB Bancorp Inc. | ||
11/09/07 | Omega Financial Corp. | FNB Corp. | ||
09/12/07 | MidWestOne Financial Group Inc. | ISB Financial Corp. | ||
07/26/07 | FNB Corp. | Virginia Financial Group, Inc. | ||
02/27/07 | FNB Financial Services Corp. | LSB Bancshares, Inc. | ||
09/21/06 | Main Street Trust Inc. | First Busey Corp. | ||
07/01/06 | Centrue Financial Corp. | UnionBancorp Inc. | ||
09/06/01 | BancFirst Ohio Corp. | UNB Corp. | ||
08/15/01 | MCB Financial Corp. | Business Bancorp | ||
06/13/01 | Virginia Commonwealth Financial Corp. | Virginia Financial Corp. | ||
05/31/01 | First Gaston Bank of North Carolina | Catawba Valley Bancshares |
• | based on the closing price on the applicable date, the mean/median at that date was: at 1 day prior (21.2%/18.6%); at 7 days prior (20.2%/19.4%); at 30 days prior (19.8/17.9%); at 60 days prior(19.2%/16.3%); at 90 days prior (26.0%/17.8%); and at 120 days prior (21.6%/22.6%); and | |
• | based on the average price over the applicable period, the mean/median over the period was: at 1 day (21.2%/18.6%); at 7 days prior (20.5%/19.0%); at 30 days prior (18.5%/16.9%); at 60 days prior (19.0%/17.6%); at 90 days prior (20.1%/17.8%); and at 120 days prior (21.0%/17.0%). |
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• | based on the closing price on the applicable date, the premium was: at 1 day prior (29.3%); at 7 days prior (23.7%); at 30 days prior (-13.3%) at 60 days prior (137.1%); at 90 days prior (77.8%); and at 120 days prior (122.3%); and | |
• | based on the average price over the applicable period, the premium was: at 1 day prior (29.3%); at 7 days prior (25.0%); at 30 days prior (-0.8%); at 60 days prior (30.9%); at 90 days prior (54.0%); and at 120 days prior (62.0%). |
% Premium Paid to Spot(1) | % Premium Paid to Average(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
30 | 60 | 90 | 120 | 30 | 60 | 90 | 120 | |||||||||||||||||||||||||||||||||||||||||||||||
1 Day | 7 Day | Day | Day | Day | Day | 1 Day | 7 Day | Day | Day | Day | Day | |||||||||||||||||||||||||||||||||||||||||||
Announcement | Target | Acquiror | Prior | Prior | Prior | Prior | Prior | Prior | Prior | Prior | Prior | Prior | Prior | Prior | ||||||||||||||||||||||||||||||||||||||||
Select Finance/ Banking MOE(3) Transactions Since 2001 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/29/07 | Columbia Financial Corp. | CCFNB Bancorp Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/09/07 | Omega Financial Corp. | FNB Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
09/12/07 | MidWestOne Financial Group Inc. | ISB Financial Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
07/26/07 | FNB Corp. | Virginia Financial Group, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
02/27/07 | FNB Financial Services Corp. | LSB Bancshares, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
09/21/06 | Main Street Trust Inc. | First Busey Corp. | Mean | 21.2 | % | 20.2 | % | 19.8 | % | 19.2 | % | 26.0 | % | 21.6 | % | 21.2 | % | 20.5 | % | 18.5 | % | 19.0 | % | 20.1 | % | 21.0 | % | |||||||||||||||||||||||||||
07/01/06 | Centrue Financial Corp. | UnionBancorp Inc. | Median | 18.6 | % | 19.4 | % | 17.9 | % | 16.3 | % | 17.8 | % | 22.6 | % | 18.6 | % | 19.0 | % | 16.9 | % | 17.6 | % | 17.8 | % | 17.0 | % | |||||||||||||||||||||||||||
09/06/01 | BancFirst Ohio Corp. | UNB Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
08/15/01 | MCB Financial Corp. | Business Bancorp | ||||||||||||||||||||||||||||||||||||||||||||||||||||
06/13/01 | Virginia Commonwealth Financial Corp. | Virginia Financial Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
05/31/01 | First Gaston Bank of North Carolina | Catawba Valley Bancshares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Woodbridge Holdings Corporation | BFC Financial Corporation(4) | 29.3 | % | 23.7 | % | (13.3 | )% | 137.1 | % | 77.8 | % | 122.3 | % | 29.3 | % | 25.0 | % | (0.8 | )% | 30.9 | % | 54.0 | % | 62.0 | % |
(1) | Based on the closing price on the applicable date. | |
(2) | Based on the average price over the applicable periods. | |
(3) | Merger of equals transactions. | |
(4) | Based on 3.47x exchange ratio and Woodbridge’s Class A Common Stock closing price of $1.10 and BFC’s Class A Common Stock closing price of $0.41 (as of 6/30/2009). |
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• | the underlying business decision of Woodbridge with respect to the merger; | |
• | the terms of any arrangements, understandings, agreements or documents related to, or the form of any other portion or aspect of, the merger or otherwise, except as expressly addressed in the opinion; | |
• | the relative merits of the merger as compared to any alternative business strategies that might exist for Woodbridge or any other party or the effect of any other transaction in which Woodbridge, BFC, their respective shareholders, or any other party might engage; | |
• | the tax or legal consequences of the merger to either Woodbridge, BFC, their respective shareholders, or any other party; or | |
• | the solvency, creditworthiness or fair value of Woodbridge or BFC under any applicable laws relating to bankruptcy, insolvency, fraudulent conveyance or similar matters. |
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• | reviewed the filings of Woodbridge, BFC and BankAtlantic Bancorp with the SEC, including each company’s Annual Reports onForm 10-K for the year ended December 31, 2008 and 2007 and Quarterly Report on Form10-Q for the quarter ended March 31, 2009, including, without limitation, the financial statements contained therein; | |
• | reviewed certain other publicly available financial data for Woodbridge, BFC and BankAtlantic Bancorp and other financial and operating information prepared by the management of Woodbridge, BFC and BankAtlantic Bancorp; | |
• | reviewed the historical market prices and trading volume for the publicly traded securities of Woodbridge and BFC; | |
• | reviewed the terms and conditions of the merger agreement; and | |
• | conducted such other studies, analyses and inquiries as Ewing deemed appropriate. |
• | the ready availability of mortgage financing and very low interest rates resulting from the Federal Reserve’s decision to “help” the economy after the collapse of the high-tech stock bubble in1999-2000; | |
• | reduced residential loan underwriting standards resulting from the acceptance of securitized and sub-prime securities by the markets and their endorsement by Fannie Mae and Freddie Mac; | |
• | a strong economy; | |
• | a favorable stock market; | |
• | increased personal wealth and liquidity created by the stock market and the liquidity created by the advent of home equity loans; and | |
• | steadily increasing home prices. |
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As of March 31, 2009
Balance Sheet | Percent of | |||||||
Assets | Asset Values | Woodbridge Assets | ||||||
Cash & CDs | $ | 127,000,000 | 24.0 | % | ||||
Real Estate Development Land | 242,000,000 | 46.6 | % | |||||
Shopping Centers & Equipment | 107,000,000 | 20.0 | % | |||||
31% of Bluegreen (9,500,000 Shares) | 16,600,000 | 3.0 | % | |||||
49% of Pizza Fusion | 3,300,000 | 0.6 | % | |||||
Office Depot (1,400,000 Shares) | 1,900,000 | 0.4 | % | |||||
Other Assets | 27,000,000 | 5.4 | % | |||||
TOTAL | $ | 524,500,000 | 100.0 | % |
• | Tradition DRI |
• | The Tradition DRI was commenced in 2002 and comprises 2,904 acres. All of the developed residential land units were sold to national and local homebuilders. Several thousand residential living units have been constructed and sold by the homebuilders, but many unsold houses remain. | |
• | The infrastructure of the Tradition DRI is financed by community development district bonds. | |
• | The Landing at Tradition is a completed 359,864 square foot power retail center located on 79 acres in the town center of Tradition, Florida and includes a number of national big box retailers. The retail center is 92% leased. The property is financed by a $58,300,000 loan. | |
• | The Village Center at Tradition is a Publix-anchored 112,421 rentable square foot shopping center (97% leased) that is part of a23-acre mixed-use project located in the town center. There is also a completed 28,000 square foot office building on the property. Two separate loans on the property total $13,700,000, which mature in June and July of 2010. |
• | Western Grove DRI |
• | The Western Grove DRI consists of 1,593 acres with entitlements for 4,062 residential units, 365,904 square feet of retail, 250,906 square feet of office space, an86-acre city park, and a20-acre school site. In addition, the undeveloped 640 acres mentioned above in the Tradition DRI has entitlements for 1,784 residential units and was considered in Ewing’s analysis to be a part of the Western Grove DRI property. | |
• | The infrastructure of the Western Grove DRI is to be financed by community development district bonds. The property has undergone some site improvements, including extensions of electric service and water and sewer mains, the installation of a pumping station and the clearing of some acreage. The Western Grove property is unencumbered, other than obligations for community development district bond debt service in the future. |
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• | A metro study survey prepared for Woodbridge in April 2009 indicated that, due to the current excess of lot inventories in the immediate market area and the West Palm Beach market, sales absorption within the Western Grove DRI will not commence until 2021. |
• | Southern Grove DRI |
• | The Southern Grove DRI consists of 2,104 acres with entitlements for 6,919 residential units and 13,164,528 square feet of commercial usage. | |
• | The infrastructure of the Southern Grove DRI is being financed by community development district bonds. | |
• | The horizontal infrastructure for a120-acre bio-tech/research mixed-use commercial park immediately south of Tradition Parkway and west of I-95 has been completed. Torrey Pines Institute for Molecular Studies has purchased a23-acre site and completed a 100,000 square foot center. Prospective tenants in the park are Oregon Health & Science University Vaccine & Gene Therapy Institute, Mann Research Center and Martin Memorial Health Systems Hospital. Construction is commencing on the Becker Road interchange and on Village Parkway, the primary north-south spine road in the Southern Grove DRI between Tradition Parkway and Becker Road. Financing is provided by the community development district bonds. | |
• | The Southern Grove DRI is collateral for an $86,700,000 loan maturing in June 2011. |
• | Development and construction activities at Tradition Hilton Head have virtually ceased. | |
• | There are entitlements for 9,500 residential units and 2,000,000 square feet of potential commercial building. An 18-hole Fazio golf course and practice center is completed and open. The golf course, which was originally intended as a member-only course, is now open to the public in an effort to defray some of the operating and maintenance costs. | |
• | Financing of the subdivision improvements has been provided in the amount of $27,900,000 due October 2019, and in the amount of $25,000,000 due February 2012. | |
• | Combined negative cash flow for 2009 is projected to be over $8,200,000, and there appears to be little asset value in Tradition Hilton Head. |
• | A150-acre tract in Tradition, South Carolina to be developed into a504-unit attached town home project. | |
• | Fourteen model homes have been constructed, of which nine have been sold. | |
• | Financing has been provided via an $80,000,000 line of credit, which has been frozen at $37,400,000. | |
• | Development has ceased other than limited marketing by the Tradition Hilton Head sales force to sell model homesand/or the remaining lots. |
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• | This is a 79,000 square foot, three-story, multi-tenant office building located immediately west of the BankAtlantic administrative headquarters on Cypress Creek Road in Ft. Lauderdale. | |
• | Sportsline.com occupies 41,000 square feet, which encompasses 52%, of the building, and its lease expires during the first quarter of 2010. | |
• | The administrative headquarters of Pizza Fusion occupies 4,900 square feet of the space. | |
• | The remaining 33,000 square feet of the building is vacant. Woodbridge is currently in discussions relating to the lease of 21,000 square feet of office space. The building has been financed by an $11,800,000 term loan that matures on April 15, 2015. |
• | Pizza Fusion Holdings, Inc. was founded in 2006 and is an operator and franchisor of upscale, organic pizza restaurants. There are 19 Pizza Fusion operations currently open, and Pizza Fusion anticipates opening an additional 17 franchises during 2009. Pizza Fusion projects that it will have 320 franchises open by 2015. However, the current adverse economic and credit environment may create an obstacle to the success of that expansion program. | |
• | Woodbridge invested $3,000,000 in 2,700,000 shares of Pizza Fusion Series B Convertible Preferred Stock in September of 2008 and, in July 2009, made an additional investment of $600,000 in the Series B Convertible Preferred Stock at a price of $1.15 per share. The additional investment made in July 2009 also entitles Woodbridge to10-year warrants for 300,000 shares of Series B Convertible Preferred Stock at a price of $1.44 per share. Woodbridge’s investment represents an approximate 45% economic interest in Pizza Fusion. |
• | Woodbridge owns 9,500,000 shares of the common stock of Bluegreen Corporation, representing 31% of outstanding shares of Bluegreen. Bluegreen’s common stock is listed on the NYSE. Bluegreen is a developer of timeshare resorts nationally, but primarily in Florida, Texas and the southeastern United States. | |
• | The investment in Bluegreen was valued at $16,500,000 as of March 31, 2009, based on a closing stock price of $1.74 on that date. | |
• | Due to difficulties in the financial markets (specifically in securitization of time share receivables), Bluegreen’s ability to continue to finance time share receivables has become very difficult. Woodbridge is attempting to assist Bluegreen in developing a financing source for the purchase of its time share receivables. |
• | Woodbridge owns 1,435,000 shares of Office Depot’s common stock. Office Depot’s common stock is listed on the NYSE, and the shares owned by Woodbridge represent less than 1% of the outstanding shares of such stock. | |
• | The investment in Office Depot was valued at $1,880,000 as of March 31, 2009, based on a closing stock price of $1.31 per share on that date. |
• | As of March 31, 2009, Woodbridge held cash and certificates of deposit totaling $127 million. | |
• | Other assets totaling $27 million consisted of intangible assets and goodwill. |
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As of March 31, 2009
Balance Sheet | Percentage | |||||||
Assets | Asset Values | BFC Assets | ||||||
Cash | $ | 7,554,000 | 6.2 | % | ||||
Investment in BankAtlantic Bancorp | 55,854,000 | 45.5 | % | |||||
Investment in Woodbridge | 39,417,000 | 32.1 | % | |||||
Investment in Benihana | 16,458,000 | 13.4 | % | |||||
Other Assets | 3,490,000 | 2.8 | % | |||||
TOTAL | $ | 122,773,000 | 100.0 | % |
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• | BFC has no long-term debt at its parent company level. | |
• | BFC’s revenues consisted primarily of dividends from BankAtlantic Bancorp and Woodbridge, but both companies have discontinued the payment of dividends on their common stock. As a result, revenues have declined from $522,000 in the first quarter of 2008 to $283,000 in the first quarter of 2009. BFC’s future cash flow must come from future dividends from BankAtlantic Bancorp and Woodbridgeand/or the sale of assets. | |
• | BFC lost $10,591,000 in the first quarter of 2009, reflecting its loss of dividend income and its equity interests in write-downs in its consolidated subsidiaries. | |
• | Woodbridge has net-operating-loss carry forwards totaling approximating $70 million. |
• | review BankAtlantic’s assets and reserves; | |
• | review the anticipated migration of loan problems and losses to loss reserves; and | |
• | determine whether BankAtlantic holds capital at “well-capitalized” regulatory levels, and whether such capital ratio levels are expected to continue. |
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• | Ewing analyzed the capital adequacy of BankAtlantic and concluded that BankAtlantic currently has capital which meets “well capitalized” regulatory standards. In addition, BankAtlantic may have access to additional capital to be provided by BankAtlantic Bancorp and BFC. If needed, these two entities could provide $65,000,000 to $90,000,000 to BankAtlantic by selling the $76,200,000 in loans held indirectly by BankAtlantic Bancorp, by selling other assets for approximately $11,000,000 or by utilizing existing cash of approximately $15,000,000. These resources could represent a source of a 15%-20% capital cushion for BankAtlantic. | |
• | BankAtlantic Bancorp, as a bank holding company, currently has no regulatory capital requirements to meet. | |
• | At March 31, 2009, BankAtlantic had $352,000,000 in nonperforming loans and $22,000,000 in REO. BankAtlantic had loan loss reserves of $146,600,000 as of March 31, 2009, which represented 3.4% of its gross loans and 40% of its nonperforming assets. | |
• | BankAtlantic Bancorp has elected not to pay dividends on its trust preferred securities as allowed by the applicable indentures. BankAtlantic ceased paying dividends to BankAtlantic Bancorp in December 2008 and has no plans to resume payment of dividends to BankAtlantic Bancorp. | |
• | BankAtlantic Bancorp and BankAtlantic are subject to several lawsuits that could have an adverse effect on BankAtlantic Bancorp and BankAtlantic if the plaintiffs prevail. |
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• | That, as a result of the merger, Woodbridge’s shareholders would be exchanging their ownership interest in Woodbridge’s various assets for an ownership interest in BFC’s various assets, which (other than its investment in Woodbridge) consist primarily of its investments in BankAtlantic Bancorp and Benihana. The resulting diversification of Woodbridge’s interests would appear to be consistent with Woodbridge’s board’s stated objective of diversification. | |
• | The economic recovery of the land development assets of Core is likely to take longer than the recovery of BankAtlantic. If so, the merger will better position Woodbridge’s shareholders to benefit earlier and from more diversified revenue producing sources when an improving economy occurs. | |
• | The two companies are under common control and many staff functions have already been combined. There should be nominal operating savings created by the merger in the form of reduced accounting, legal and SEC fees. | |
• | The resulting larger number of shares and shareholders may improve the marketability of BFC’s Class A Common Stock. |
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• | insurance companies; | |
• | tax-exempt organizations; | |
• | dealers in securities or foreign currency; | |
• | banks or trusts; | |
• | persons that hold shares of Woodbridge’s Class A Common Stock as part of a straddle, a hedge against currency risk, a constructive sale or conversion transaction; | |
• | persons that have a functional currency other than the U.S. dollar; | |
• | investors in pass-through entities; | |
• | holders who acquired their shares of Woodbridge’s Class A Common Stock through the exercise of options or otherwise as compensation or through a tax-qualified retirement plan; or | |
• | holders of options or restricted shares granted under any Woodbridge benefit plan. |
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• | a citizen or resident of the United States; | |
• | a corporation or other entity taxable as a corporation created or organized under the laws of the United States or any of its political subdivisions; | |
• | a trust, if a United States court is able to exercise primary supervision over the administration of the trust and one or more United States fiduciaries have the authority to control all substantial decisions of the trust; or | |
• | an estate that is subject to United States federal income tax on its income regardless of its source. |
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• | the approval of the merger and the related transactions and the merger agreement, respectively, by BFC’s and Woodbridge’s shareholders; | |
• | the absence of any legal restraints or prohibitions preventing the completion of the merger or litigation or other proceeding seeking to enjoin or prohibit the merger; |
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• | the declaration by the SEC that the registration statement of which this joint proxy statement/prospectus is a part is effective and the absence of any stop order or proceeding, initiated or threatened in writing by the SEC, suspending or threatening to suspend such effectiveness; | |
• | the receipt of all consents, approvals, assignments and authorizations reasonably necessary to consummate the merger and continue in full force and effect certain material contracts to which Woodbridge is a party; and | |
• | the receipt by BFC and Woodbridge from Stearns Weaver of an opinion, dated as of the date on which the merger is consummated, stating that the merger will be treated for U.S. federal income tax purposes as a “reorganization” within the meaning of Section 368(a) of the Code. |
• | the representations and warranties of Woodbridge contained in the merger agreement being true and correct, subject to certain materiality qualifications; | |
• | the performance in all material respects by Woodbridge of all obligations required to be performed by it under the merger agreement; | |
• | the delivery by Woodbridge to BFC of a certificate, dated as of the date on which the merger is consummated and signed by the president and chief financial officer of Woodbridge, certifying the satisfaction of each of the two foregoing conditions; | |
• | the fairness opinion of JMP Securities, BFC’s financial advisor, not being withdrawn, revoked or materially modified; | |
• | holders of not more than 10% of the outstanding shares of Woodbridge’s Class A Common Stock duly and validly exercising, or remaining entitled to exercise, their appraisal rights in accordance with the FBCA; and | |
• | Woodbridge not having recorded, or determining that it is reasonably likely to record,other-than-temporary impairment charges in an aggregate amount greater than $15 million. |
• | the representations and warranties of BFC contained in the merger agreement being true and correct, subject to certain materiality qualifications; | |
• | the performance in all material respects by BFC of all obligations required to be performed by it under the merger agreement; | |
• | the delivery by BFC to Woodbridge of a certificate, dated as of the date on which the merger is consummated and signed by the chief executive officer and chief financial officer of BFC, certifying the satisfaction of each of the two foregoing conditions; | |
• | the fairness opinion of Ewing, Woodbridge’s financial advisor, not being withdrawn, revoked or materially modified; and | |
• | BFC not having recorded, or determining that it is reasonably likely to record,other-than-temporary impairment charges in an aggregate amount greater than $15 million (except forother-than-temporary impairment charges relating to an asset owned by Woodbridge or any of Woodbridge’s subsidiaries or relating to BFC’s investment in Woodbridge). |
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• | organization, good standing and similar matters; | |
• | capitalization; | |
• | due authorization, execution, delivery and enforceability of the merger agreement and the transactions contemplated thereby; | |
• | absence of conflicts with each such party’s governing documents, applicable laws and contracts; | |
• | documents filed with the SEC, including financial statements, compliance with applicable SEC filing requirements and accuracy of information contained in such documents; | |
• | absence of any event or occurrence of any condition since March 31, 2009 that (i) has had or could reasonably be expected to have a material adverse effect with respect to such party, (ii) could reasonably be expected to render any of the representations and warranties of such party contained in the merger agreement incorrect or untrue as of the effective time of the merger or (iii) would result in a violation of the covenants of such party contained in the merger agreement had such event or condition occurred after the date of the merger agreement; | |
• | filing of tax returns and payment of taxes; | |
• | material contracts, and the enforceability of such contracts; | |
• | pending or threatened litigation; | |
• | engagement and payment of fees of brokers and finders; | |
• | accuracy of information supplied by such party in connection with this joint proxy statement/prospectus and the registration statement of which it is a part; | |
• | the qualification of the merger as a “reorganization” under Section 368(a) of the Code; | |
• | the receipt of fairness opinions from BFC’s and Woodbridge’s respective financial advisors; | |
• | accuracy and sufficiency of information contained in the merger agreement; | |
• | compliance with laws; | |
• | related party transactions; | |
• | insurance; | |
• | compliance with the Sarbanes-Oxley Act of 2002; | |
• | certain business practices; | |
• | employee benefit plans; and | |
• | labor and employment matters. |
• | conduct its business in a manner that is not consistent with its ordinary course of business and past practice or in a manner that would cause it to default under certain material contracts to which it is a party; |
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• | change or amend its Articles of Incorporation or By-laws (except that BFC may amend its Amended and Restated Articles of Incorporation and By-laws as described in this joint proxy statement/prospectus); | |
• | divide, combine or reclassify any of its capital stock or otherwise make any changes in its capital structure; | |
• | declare, pay or set aside for payment any dividend or other distribution in respect of its capital stock, except as consistent with past practice; | |
• | adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization; | |
• | engage in any action that could reasonably be expected to cause the merger to fail to qualify as a “reorganization” under Section 368(a) of the Code; | |
• | take any action that would cause its representations and warranties contained in the merger agreement to be untrue in any material respect; | |
• | take any action that would reasonably be likely to materially delay the merger; or | |
• | agree to take, or make any commitment to take, any of the foregoing actions. |
• | issue, sell, or grant any shares of its capital stock (except shares of Woodbridge’s Class A Common Stock to be issued upon exercise of options which are outstanding on the date of the merger agreement); or | |
• | issue, sell or grant any options, warrants, or rights to purchase or subscribe to, or enter into any arrangement or contract with respect to the issuance or sale of, any of its capital stock or rights or obligations convertible into or exchangeable for any such shares of capital stock, except in the ordinary course of business consistent with past practices. |
• | give prompt notice to the other party of (i) any event known to such party which has or is reasonably likely to have a material adverse effect on such party, (ii) any event or circumstance that constitutes or could reasonably be expected to constitute a breach of any of the representations, warranties, or covenants of such party contained in the merger agreement or (iii) any event or circumstance which could materially and adversely affect such party’s ability to satisfy the conditions to the merger; | |
• | permit the other party and its authorized representatives reasonable access during regular business hours to the properties of such party and make their respective directors, management and other employees and agents and authorized representatives (including counsel and independent public accountants) available to confer with the other party and its authorized representatives at reasonable times and upon reasonable request; |
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• | disclose and make available to the other party, and cause its agents and authorized representatives to disclose and make available to the other party, all books, papers and records relating to the assets, properties, operations, obligations and liabilities of such party, and to maintain the confidentiality of such information, except as otherwise required by law; | |
• | consult with the other party before issuing, and provide the other party the opportunity to review, comment upon and approve, subject to applicable law, regulation or stock exchange rules, any press release or other public announcement with respect to the merger agreement or the merger; | |
• | use its reasonable efforts (i) in good faith to take or cause to be taken as promptly as practicable all reasonable actions within its control to cause the conditions precedent to its obligations to consummate the merger to be fulfilled and (ii) to obtain all consents and approvals required in connection with the consummation of the transactions contemplated by the merger agreement; | |
• | hold a meeting of its shareholders as promptly as reasonably practicable after the effectiveness of the registration statement of which this joint proxy statement/prospectus is a part and use its reasonable efforts to secure the required vote or consent of its shareholders; | |
• | provide the other party with the information pertaining to such party required by the Securities Act or the Exchange Act, as the case may be, for inclusion in this joint proxy statement/prospectus and the registration statement of which this joint proxy statement/prospectus is a part; | |
• | use all reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable on the part of such party, to consummate and make effective the transactions contemplated by the merger agreement at the earliest practicable date, including obtaining all required consents, approvals, waivers, exemptions, amendments and authorizations, giving all notices, and making or effecting all filings, registrations, applications, designations and declarations; | |
• | use reasonable best efforts to cause the merger to qualify as a “reorganization” under Section 368(a) of the Code and use reasonable best efforts not to, and not to permit or cause any of its affiliates (or subsidiaries, in the case of BFC) to, take any action or cause any action to be taken which would cause the merger to fail to so qualify as a “reorganization” under Section 368(a) of the Code; | |
• | use its commercially reasonable efforts to cause to be delivered to the other party reasonable and customary comfort letters from its independent accountant; and | |
• | cooperate and consult with the other party, to the fullest extent possible, in connection with any shareholder litigation against it or any of its directors or officers with respect to the transactions contemplated by the merger agreement. |
• | prepare and file with the SEC, with Woodbridge’s assistance, the registration statement of which this joint proxy statement/prospectus is a part and use all commercially reasonable efforts to cause the registration statement to become effective as promptly as practicable after filing and to maintain such effectiveness until all of the shares of BFC’s Class A Common Stock to be issued in connection with the merger have been issued and distributed; | |
• | use its best efforts to cause the seven directors of Woodbridge who are not also directors of BFC as well as Seth M. Wise and Jarett S. Levan to be appointed to the board of directors of BFC in connection with the merger; | |
• | use its best efforts to cause Seth M. Wise to be appointed Executive Vice President of BFC in connection with the merger; and | |
• | take any action required under applicable federal or state securities laws in connection with the issuance of the shares of BFC’s Class A Common Stock in connection with the merger. |
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• | discontinue the sale or contribution (for any applicable period not commenced as of the date of the merger agreement) of Woodbridge’s Class A Common Stock and Class B Common Stock pursuant to any of Woodbridge’s employee benefit plans which are subject to Section 401(a) of the Code; | |
• | cause all outstanding options to purchase shares of Woodbridge’s Class A Common Stock to be canceled as of the effective time of the merger; and | |
• | terminate its shareholder rights plan as of the effective time of the merger and take such actions as may be necessary to cause the shareholder rights plan to be inapplicable to the merger and the other transactions contemplated by the merger agreement. |
• | solicit, initiate, or knowingly encourage any acquisition proposal or any inquiries or proposals that could reasonably be expected to lead to any acquisition proposal; | |
• | engage in negotiations or discussions concerning, or provide any non-public information to any person in connection with, any acquisition proposal or under circumstances that could reasonably be expected to result in an acquisition proposal; or | |
• | agree to, approve, recommend or otherwise endorse or support any acquisition proposal. |
• | merger, consolidation, share exchange, business combination or similar transaction involving Woodbridge or any of its subsidiaries or BFC; | |
• | sale, lease, exchange, transfer or other disposition (other than sales of inventory in the ordinary course of business consistent with past practices), directly or indirectly, by merger, consolidation, share exchange or otherwise (whether in one or more transactions), of all or substantially all of the assets of Woodbridge and its subsidiaries on a consolidated basis or BFC; | |
• | liquidation, dissolution, recapitalization or other similar type of transaction; | |
• | tender or exchange offer for ten percent or more of the outstanding shares of Woodbridge’s Class A Common Stock and Class B Common Stock or BFC’s Class A Common Stock and Class B Common Stock or other transaction with Woodbridge or BFC in which any person or group shall acquire or have the right to acquire beneficial ownership of ten percent or more of the outstanding shares of Woodbridge’s Class A Common Stock and Class B Common Stock or BFC’s Class A Common Stock and Class B Common Stock; or | |
• | other transaction which is similar in form, substance or purpose to any of the foregoing transactions. |
• | notify the other company immediately, and in any event within 24 hours, if (i) an acquisition proposal is made or is modified in any respect (including any written material provided by the offeror, the principal terms and conditions of any such acquisition proposal or modification thereto and the identity of the offeror), in which case Woodbridge or BFC will provide a copy of the acquisition proposal |
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concurrently with such notice or (ii) if either of them furnishes non-public information to, or enters into discussions or negotiations with respect to an acquisition proposal with, any third party; |
• | as promptly as practicable, advise the other company orally and in writing of any request for information that could reasonably be expected to lead to an acquisition proposal as well as the material terms and conditions of such request or inquiry and keep the other company informed in all respects of the status of any such request or inquiry; and | |
• | provide the other company with prior telephonic (promptly confirmed in writing) or written notice of any board of directors or committee meeting at which an acquisition proposal is expected or could reasonably be expected to be considered, together with a copy of the documentation relating to such acquisition proposal to the extent such documentation is then available (and otherwise provide such documentation as soon as available). |
• | furnish information about its business to such person under protection of an appropriate confidentiality agreement containing customary limitations on the use and disclosure of all non-public written or oral information furnished to such person, provided that Woodbridge contemporaneously furnishes to BFC or BFC contemporaneously furnishes to Woodbridge, as the case may be, all the non-public information furnished to such person; and | |
• | negotiate and participate in discussions with such person. |
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• | the merger has not been consummated by September 15, 2009 or, provided the companies are proceeding in good faith to consummate the merger, December 15, 2009; |
• | the shareholders of BFC do not approve the merger and the related transactions or the shareholders of Woodbridge do not approve the merger agreement; | |
• | any order, decree, ruling or other judgment issued by any court or other governmental entity prohibiting the consummation of the merger is in effect and has become final and nonappealable; | |
• | any law is enacted which makes consummation of the merger illegal; or | |
• | BFC’s board of directors or Woodbridge’s special committee or board of directors determines to approve or recommend a superior proposal after complying with the “no solicitation” provisions of the merger agreement or withholds or withdraws its recommendation of the merger agreement or the merger in a manner adverse to the other company. |
• | BFC breaches or fails to perform in any material respect any of its representations, warranties, covenants or other agreements contained in the merger agreement, which breach is incapable of being cured or is not cured within 15 days following the giving of written notice to BFC and which breach or failure to perform would result in the failure of a condition to Woodbridge’s obligation to consummate the merger; or | |
• | Ewing, Woodbridge’s financial advisor, withdraws, revokes, annuls or materially modifies its fairness opinion. |
• | Woodbridge breaches or fails to perform in any material respect any of its representations, warranties, covenants or other agreements contained in the merger agreement, which breach is incapable of being cured or is not cured within 15 days following the giving of written notice to Woodbridge and which breach or failure to perform would result in the failure of a condition to BFC’s obligation to consummate the merger; | |
• | JMP Securities, BFC’s financial advisor, withdraws, revokes, annuls or materially modifies its fairness opinion; or | |
• | a tender offer or exchange offer for ten percent or more of the outstanding shares of Woodbridge’s Class A Common Stock and Class B Common Stock is commenced or a registration statement or statement on Schedule TO with respect thereto is filed (other than by BFC or certain of its affiliates) and the board of directors of Woodbridge, notwithstanding its obligations under the merger agreement, recommends that the shareholders of Woodbridge tender their shares in such tender or exchange offer or publicly announces its intention to take no position with respect to such tender offer. |
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AS OF JUNE 30, 2009
BFC | Proforma | |||||||||||
Consolidated | Adjustments | Pro forma | ||||||||||
(In thousands, except for share data) | ||||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 271,873 | (745 | )(2) | 271,128 | |||||||
Securities investment | 690,596 | 690,596 | ||||||||||
Loans receivable and residential loans held for sale | 4,028,761 | 4,028,761 | ||||||||||
Real estate held for development and sale | 270,958 | 270,958 | ||||||||||
Real estate owned | 34,317 | 34,317 | ||||||||||
Investments in unconsolidated affiliates | 40,583 | 40,583 | ||||||||||
Properties and equipment, net | 304,291 | 304,291 | ||||||||||
Goodwill and other intangible assets | 35,363 | 35,363 | ||||||||||
Other assets | 136,255 | 136,255 | ||||||||||
Total assets | $ | 5,812,997 | (745 | ) | 5,812,252 | |||||||
LIABILITIES AND EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits | $ | 4,055,047 | 4,055,047 | |||||||||
Advances from FHLB | 597,252 | 597,252 | ||||||||||
Short term borrowings | 25,068 | 25,068 | ||||||||||
Subordinated debentures, mortgage notes payable | 286,245 | 286,245 | ||||||||||
Junior subordinated debentures | 383,325 | 383,325 | ||||||||||
Other liabilities | 129,080 | 129,080 | ||||||||||
Total liabilities | 5,476,017 | — | 5,476,017 | |||||||||
Preferred stock of $.01 par value; authorized - 10,000,000 shares; Redeemable 5% Cumulative Preferred Stock — $.01 par value; authorized 15,000 shares; issued and outstanding 15,000 shares in 2009 with a redemption value of $1,000 per share | 11,029 | 0 | 11,029 | |||||||||
Commitments and contingencies | ||||||||||||
Equity: | ||||||||||||
Class A common stock of $.01 par value, authorized 100,000,000 shares; issued and outstanding 38,275,112 in 2009, proforma 83,044,150 | 382 | 448 | (1) | 830 | ||||||||
Class B common stock of $.01 par value, authorized 20,000,000 shares; issued and outstanding 6,854,381 in 2009 | 69 | 0 | 69 | |||||||||
Additional paid-in capital | 124,728 | 108,342 | (1) | 233,070 | ||||||||
Accumulated deficit | (32,050 | ) | (745 | )(2) | (32,795 | ) | ||||||
Accumulated other comprehensive income | 3,398 | 0 | 3,398 | |||||||||
Total BFC shareholders’ equity | 96,527 | 108,045 | 204,572 | |||||||||
Noncontrolling interests | 229,424 | (108,790 | )(1) | 120,634 | ||||||||
Total equity | 325,951 | (745 | ) | 325,206 | ||||||||
Total liabilities and equity | $ | 5,812,997 | (745 | ) | 5,812,252 | |||||||
Currently, BFC’s voting interest in Woodbridge is 58.9% and, accordingly, BFC is required under generally accepted accounting principles to consolidate the financial results of Woodbridge. As such, the merger will be accounted for as an equity transaction. Therefore, both the fair value of the consideration paid and the excess carrying value of the noncontrolling interest are recorded in equity. |
(1) | The consideration that BFC will receive in exchange for the shares of its Class A Common Stock that it will issue in the merger is based on the carrying value of BFC’s non-controlling interest in Woodbridge at March 31, 2009 of $103.5 million and was allocated between common stock and additional paid-in capital. The excess carrying value of non-controlling interest of approximately $5.3 million was recorded in additional paid-in capital. The exchange ratio of 3.47 shares of BFC’s Class A Common Stock for each share of Woodbridge’s Class A Common Stock was determined by dividing the carrying value per share of Woodbridge’s Class A Common Stock of $8.02 as of March 31, 2009 by the carrying value per share of BFC’s Class A Common Stock of $2.31 as of that same date. |
(2) | Estimated direct costs associated with the merger. |
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For the Six Months Ended June 30, 2009 | ||||||||||||
BFC | Proforma | |||||||||||
Consolidated | Adjustments | Pro forma | ||||||||||
(In thousands, except for per share data) | ||||||||||||
Revenues | ||||||||||||
BFC Activities | $ | 952 | — | 952 | ||||||||
Financial Services | 184,564 | — | 184,564 | |||||||||
Real Estate Development | 9,945 | — | 9,945 | |||||||||
Total revenues | 195,461 | — | 195,461 | |||||||||
Costs and Expenses | ||||||||||||
BFC Activities | 5,751 | 5,751 | ||||||||||
Financial Services | 268,493 | — | 268,493 | |||||||||
Real Estate Development | 28,798 | 28,798 | ||||||||||
Total costs and expenses | 303,042 | — | 303,042 | |||||||||
Equity in earnings from unconsolidated affiliates | 17,250 | — | 17,250 | |||||||||
Impairment of unconsolidated affiliates | (20,401 | ) | — | (20,401 | ) | |||||||
Impairment of other investments | (2,396 | ) | — | (2,396 | ) | |||||||
Gain on settlement of investment in Woodbridge’s subsidiary | 40,369 | — | 40,369 | |||||||||
Loss from continuing operations before income taxes | (72,759 | ) | — | (72,759 | ) | |||||||
Income taxes | — | — | — | |||||||||
Loss from continuing operations | (72,759 | ) | — | (72,759 | ) | |||||||
Less: Net loss from continuing operations attributable to noncontrolling interests | 48,189 | 11,814 | (1) | 60,003 | ||||||||
Net (loss) income from continuing operations attributable to BFC | $ | (24,570 | ) | 11,814 | (12,756 | ) | ||||||
Basic and Diluted loss per common share from continuing operations | $ | (0.55 | )(3) | $ | (0.15 | )(3) | ||||||
Diluted weighted average number of common shares outstanding | 45,120 | 44,769 | (2) | 89,889 |
For the Year Ended December 31, 2008 | ||||||||||||
BFC | Proforma | |||||||||||
Consolidated | Adjustments | Pro forma | ||||||||||
(In thousands, except for per share data) | ||||||||||||
Revenues | ||||||||||||
BFC Activities | $ | 4,408 | — | 4,408 | ||||||||
Financial Services | 449,571 | — | 449,571 | |||||||||
Real Estate Development | 33,491 | — | 33,491 | |||||||||
Total revenues | 487,470 | — | 487,470 | |||||||||
Costs and Expenses | ||||||||||||
BFC Activities | 12,139 | — | 12,139 | |||||||||
Financial Services | 634,970 | — | 634,970 | |||||||||
Real Estate Development | 72,751 | — | 72,751 | |||||||||
Total costs and expenses | 719,860 | — | 719,860 | |||||||||
Equity in earnings from unconsolidated affiliates | 15,064 | — | 15,064 | |||||||||
Impairment of unconsolidated affiliates | (96,579 | ) | — | (96,579 | ) | |||||||
Impairment of investments | (15,548 | ) | — | (15,548 | ) | |||||||
Loss from continuing operations before income taxes and noncontrolling interest | (329,453 | ) | — | (329,453 | ) | |||||||
Provision for income taxes | 15,763 | — | 15,763 | |||||||||
Loss from continuing operations | (345,216 | ) | — | (345,216 | ) | |||||||
Net loss from continuing operations attributable to noncontrolling interest | 272,711 | (111,307 | )(1) | 161,404 | ||||||||
Net loss from continuing operations attributable to BFC | $ | (72,505 | ) | (111,307 | ) | (183,812 | ) | |||||
Basic and Diluted loss per common share from continuing operations | $ | (1.62 | )(3) | $ | (2.05 | )(3) | ||||||
Diluted weighted average number of common shares outstanding | 45,097 | 44,769 | (2) | 89,866 |
(1) | Eliminate net (loss) income from continuing operations attributable to noncontrolling interest in Woodbridge. | |
(2) | Shares of BFC’s Class A Common Stock that will be issued to Woodbridge’s shareholders in the merger. |
(3) | For purposes of computing basic and diluted loss per common share from continuing operations, preferred stock dividends of $375,000 and $750,000 were included in the numerators for the six months ended June 30, 2009 and for the year ended December 31, 2008, respectively. |
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Cash | ||||||||||||
Dividends | ||||||||||||
High | Low | per Share | ||||||||||
Calendar Year 2007 | ||||||||||||
First quarter | $ | 6.75 | $ | 4.31 | — | |||||||
Second quarter | 4.50 | 3.59 | — | |||||||||
Third quarter | 4.04 | 2.22 | — | |||||||||
Fourth quarter | 3.38 | 1.16 | — | |||||||||
Calendar Year 2008 | ||||||||||||
First quarter | $ | 1.56 | $ | 0.50 | — | |||||||
Second quarter | 1.26 | 0.57 | — | |||||||||
Third quarter | 1.04 | 0.45 | — | |||||||||
Fourth quarter | 0.68 | 0.12 | — | |||||||||
Calendar Year 2009 | ||||||||||||
First quarter | $ | 0.32 | $ | 0.06 | — | |||||||
Second quarter | 0.51 | 0.16 | — | |||||||||
Third quarter (through August 12, 2009) | 0.51 | 0.26 | — |
Cash | ||||||||||||
Dividends | ||||||||||||
High | Low | per Share | ||||||||||
Calendar Year 2007 | ||||||||||||
First quarter | $ | 77.20 | $ | 45.95 | $ | 0.10 | ||||||
Second quarter | 59.10 | 42.35 | — | |||||||||
Third quarter | 53.10 | 10.00 | — | |||||||||
Fourth quarter | 20.00 | 7.70 | — | |||||||||
Calendar Year 2008 | ||||||||||||
First quarter | $ | 13.15 | $ | 7.00 | — | |||||||
Second quarter | 11.50 | 5.50 | — | |||||||||
Third quarter | 6.60 | 0.78 | — | |||||||||
Fourth quarter | 3.25 | 0.02 | — | |||||||||
Calendar Year 2009 | ||||||||||||
First quarter | $ | 0.89 | $ | 0.32 | — | |||||||
Second quarter | 2.56 | 0.36 | — | |||||||||
Third quarter (through August 12, 2009) | 1.65 | 0.80 | — |
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Equivalent | ||||||||||||
Value of | ||||||||||||
BFC’s | Woodbridge’s | Woodbridge’s | ||||||||||
Class A | Class A | Class A | ||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||
July 2, 2009 | $ | 0.40 | $ | 1.10 | $ | 1.39 | ||||||
, 2009 | $ | [ ] | $ | [ ] | $ | [ ] |
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Shares | Percent of | Percent | ||||||||||
Owned | Ownership | of Vote | ||||||||||
BankAtlantic Bancorp | ||||||||||||
Class A Common Stock | 2,389,697 | 23.28 | % | 12.34 | % | |||||||
Class B Common Stock | 975,225 | 100.00 | % | 47.00 | % | |||||||
Total | 3,364,922 | 29.94 | % | 59.34 | % | |||||||
Woodbridge Holdings Corporation | ||||||||||||
Class A Common Stock | 3,735,392 | 22.45 | % | 11.90 | % | |||||||
Class B Common Stock | 243,807 | 100.00 | % | 47.00 | % | |||||||
Total | 3,979,199 | 23.57 | % | 58.90 | % |
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December 31, 2008 | December 31, 2007 | |||||||||||||||
Full-Time | Part-Time | Full-Time | Part-Time | |||||||||||||
BFC | 37 | 1 | 47 | 1 |
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• | attracting checking and savings deposits from individuals and business customers, | |
• | originating commercial real estate, middle market, consumer and small business loans, | |
• | purchasing wholesale residential loans, and | |
• | investing in mortgage-backed securities, tax certificates and other securities. |
• | Continuing the Bank’s “Florida’s Most Convenient Bank” Initiative. BankAtlantic began its “Florida’s Most Convenient Bank” initiative in 2002, when it introducedseven-day banking in Florida. This banking initiative resulted in a significant increase in core deposits (demand deposit accounts, NOW |
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checking accounts and savings accounts). BankAtlantic’s core deposits increased from approximately $600 million as of December 31, 2001 to $2.2 billion as of December 31, 2008. We believe the competitive market for deposits, the impact of the recession on our customers as well as reduced confidence in the banking system negatively impacted the growth of core deposits, which at December 31, 2008 declined by $151.0 million or 7% from December 31, 2007. While we believe that the decrease is a reflection of what is happening in the market generally, we are implementing strategies which we believe will enhance customer loyalty with our current customers and attract new customers in an effort to increase our core deposit balances. |
• | Maintaining and Strengthening our Capital Position. BankAtlantic exceeded all applicable regulatory capital requirements and was considered a “well capitalized” financial institution at December 31, 2008. See “Regulation and Supervision” — Capital Requirements” for an explanation of capital standards. Management has implemented initiatives with a view to preserving capital in response to the current recessionary economic environment. These initiatives include reducing assets as a result of loan and securities repayments in the ordinary course, eliminating cash dividends to the Parent Company, consolidating back-office facilities, decreasing store and call center hours, reducing staffing levels and marketing expenses, selling its central Florida stores, delaying its retail network expansion, and pursuing efforts to improve other operational efficiencies. | |
• | Managing Credit Risk. BankAtlantic believes that its underwriting policies and procedures are structured to enable it to offer products and services to its customers while minimizing its exposure to credit risk. However, the economic recession and the substantial decline in real estate values throughout the United States, and particularly in Florida, have had an adverse impact on the credit quality of our loan portfolio. In response, BankAtlantic has attempted to address credit risk through steps which include: |
• | Specifically monitored certain commercial and residential land acquisition, development and construction loans and related collateral; | |
• | Focused efforts and enhanced staffing relating to loan work-outs and collection processes; | |
• | Suspended the origination of land and residential acquisition, development and construction loans; | |
• | Transferred $101.5 million of non-performing commercial real estate loans to the Parent Company in March 2008; | |
• | Substantially reduced home equity loan originations based on the implementation of new underwriting requirements; | |
• | Terminated certain home equity loan unused lines of credit based on declines in borrower credit scores or the value of loan collateral; and | |
• | Increased the frequency of targeted loan reviews. |
• | Reducing Operating Expenses. Management continued initiatives to decrease operating expenses during 2008, including lowering advertising and marketing expenditures, exiting the Orlando market, reducing store hours, shortening call center hours, reducing staffing levels, renegotiating vendor contracts, outsourcing certain back-office functions, and consolidating back-office operations. During 2009, management intends to seek to further reduce costs in a manner which does not materially impact the quality of customer service. BankAtlantic is also continuing to evaluate its products and services as well as its delivery systems and back-office support infrastructure with a view to providing cost effective and profitable products and services to its customers. | |
• | Diversification of BankAtlantic’s Loan Portfolio. BankAtlantic is focused on the diversification of its loan portfolio. During 2009 BankAtlantic intends to seek to generate a greater percentage of small business and middle market commercial non-mortgage loans through its retail and lending network. As middle market and small business loans grow, we expect that commercial real estate loan portfolio |
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balances and residential mortgage loans will decline during 2009 through the scheduled repayment of existing loans and significant reductions in commercial real estate loan originations. |
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||||
Amount | Pct | Amount | Pct | Amount | Pct | Amount | Pct | Amount | Pct | |||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Residential | $ | 1,930 | 45.34 | 2,156 | 47.66 | 2,151 | 46.81 | 2,030 | 43.92 | 2,057 | 45.16 | % | ||||||||||||||||||||||||||||
Consumer — home equity | 719 | 16.89 | 676 | 14.94 | 562 | 12.23 | 514 | 11.12 | 457 | 10.03 | ||||||||||||||||||||||||||||||
Construction and development | 301 | 7.07 | 416 | 9.20 | 475 | 10.34 | 785 | 16.99 | 766 | 16.82 | ||||||||||||||||||||||||||||||
Commercial | 930 | 21.85 | 882 | 19.49 | 973 | 21.17 | 979 | 21.18 | 1,004 | 22.04 | ||||||||||||||||||||||||||||||
Small business | 219 | 5.14 | 212 | 4.69 | 187 | 4.07 | 152 | 3.29 | 124 | 2.72 | ||||||||||||||||||||||||||||||
Loans to Levitt Corporation | — | 0.00 | — | 0.00 | — | 0.00 | — | 0.00 | 9 | 0.20 | ||||||||||||||||||||||||||||||
Other loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial business | 143 | 3.36 | 131 | 2.90 | 157 | 3.42 | 88 | 1.90 | 93 | 2.04 | ||||||||||||||||||||||||||||||
Small business — non-mortgage | 108 | �� | 2.54 | 106 | 2.34 | 98 | 2.13 | 83 | 1.80 | 67 | 1.47 | |||||||||||||||||||||||||||||
Consumer | 26 | 0.61 | 31 | 0.68 | 26 | 0.57 | 27 | 0.59 | 18 | 0.40 | ||||||||||||||||||||||||||||||
Residential loans held for sale | 3 | 0.07 | 4 | 0.09 | 9 | 0.20 | 3 | 0.06 | 5 | 0.11 | ||||||||||||||||||||||||||||||
Total | 4,379 | 102.87 | 4,614 | 101.99 | 4,638 | 100.94 | 4,661 | 100.85 | 4,600 | 100.99 | ||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||
Unearned discounts (premiums) | (3 | ) | (0.07 | ) | (4 | ) | (0.09 | ) | (1 | ) | (0.02 | ) | (2 | ) | (0.04 | ) | (1 | ) | (0.02 | ) | ||||||||||||||||||||
Allowance for loan losses | 125 | 2.94 | 94 | 2.08 | 44 | 0.96 | 41 | 0.89 | 46 | 1.01 | ||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 4,257 | 100.00 | 4,524 | 100.00 | 4,595 | 100.00 | 4,622 | 100.00 | 4,555 | 100.00 | % | ||||||||||||||||||||||||||||
As of December 31, | ||||||||
2008 | 2007 | |||||||
Builder land bank loans | $ | 62 | 150 | |||||
Land acquisition and development loans | 166 | 202 | ||||||
Land acquisition, development and construction loans | 76 | 151 | ||||||
Total commercial residential development loans(1) | $ | 304 | 503 | |||||
(1) | At March 31, 2008, $101.5 million of non-performing loans were transferred to a subsidiary of the Parent Company. |
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Mortgage- | Corporate | Weighted | ||||||||||||||||||||||
Tax | Tax-Exempt | Backed | Bond | Average | ||||||||||||||||||||
Certificates | Securities | Securities | and Other | Total | Yield | |||||||||||||||||||
December 31, 2008 | ||||||||||||||||||||||||
Maturity:(1) | ||||||||||||||||||||||||
One year or less | $ | 224,434 | — | — | — | 224,434 | 6.68 | % | ||||||||||||||||
After one through five years | — | — | 101 | 250 | 351 | 3.98 | ||||||||||||||||||
After five through ten years | — | — | 36,885 | — | 36,885 | 5.16 | ||||||||||||||||||
After ten years | — | — | 662,238 | — | 662,238 | 4.77 | ||||||||||||||||||
Fair values(2) | $ | 224,434 | — | 699,224 | 250 | 923,908 | 5.25 | % | ||||||||||||||||
Amortized cost(2) | $ | 213,534 | — | 687,344 | 250 | 901,128 | 6.00 | % | ||||||||||||||||
Weighted average yield based on fair values | 6.68 | — | 4.79 | 4.30 | 5.25 | |||||||||||||||||||
Weighted average maturity (yrs) | 1.0 | — | 23.95 | 1.67 | 18.50 | |||||||||||||||||||
December 31, 2007 | ||||||||||||||||||||||||
Fair values(2) | $ | 188,401 | — | 788,461 | 681 | 977,543 | 5.90 | % | ||||||||||||||||
Amortized cost(2) | $ | 188,401 | — | 785,682 | 685 | 974,768 | 6.06 | % | ||||||||||||||||
December 31, 2006 | ||||||||||||||||||||||||
Fair values(2) | $ | 195,391 | 397,244 | 361,750 | 675 | 955,060 | 6.17 | % | ||||||||||||||||
Amortized cost(2) | $ | 195,391 | 397,469 | 365,565 | 685 | 959,110 | 6.05 | % | ||||||||||||||||
(1) | Except for tax certificates, maturities are based upon contractual maturities. Tax certificates do not have stated maturities, and estimates in the above table are based upon historical repayment experience (generally 1 to 2 years). | |
(2) | Equity and tax exempt securities held by the Parent Company with a cost of $3.6 million, $162.6 million, and $88.6 million and a fair value of $4.1 million, $179.5 million, and $99.9 million, at December 31, 2008, 2007 and 2006, respectively, were excluded from the above table. At December 31, 2008, equities held by BankAtlantic with a cost of $0.8 million and a fair value of $0.8 million was excluded from the above table. |
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December 31, 2008(1) | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Appreciation | Depreciation | Fair Value | |||||||||||||
Tax certificates and investment securities: | ||||||||||||||||
Tax certificates: | ||||||||||||||||
Cost equals market | $ | 213,534 | 10,900 | — | 224,434 | |||||||||||
Securities available for sale: | ||||||||||||||||
Investment securities: | ||||||||||||||||
Cost equals market | 250 | — | — | 250 | ||||||||||||
Market over cost | — | — | — | — | ||||||||||||
Cost over market | — | — | — | — | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Cost equals market | — | — | — | — | ||||||||||||
Market over cost | 654,199 | 12,863 | — | 667,062 | ||||||||||||
Cost over market | 33,145 | — | 983 | 32,162 | ||||||||||||
Total | $ | 901,128 | 23,763 | 983 | 923,908 | |||||||||||
(1) | The above table excludes Parent Company equity securities with a cost of $3.6 million and a fair value of $4.1 million at December 31, 2008. At December 31, 2008, equities held by BankAtlantic with a cost of $0.8 million and a fair value of $0.8 million was excluded from the above table. |
• | Securities sold under agreements to repurchase include a sale of a portion of its current investment portfolio (usually mortgage-backed securities and REMICs) at a negotiated rate and an agreement to repurchase the same assets on a specified future date. BankAtlantic issues repurchase agreements to institutions and to its customers. These transactions are collateralized by securities in its investment portfolio but are not insured by the FDIC. |
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• | Treasury tax and loan borrowings represent BankAtlantic’s participation in the Federal Reserve Treasury Investment Program. Under this program the Federal Reserve places funds with BankAtlantic obtained from treasury tax and loan payments received by financial institutions. | |
• | Federal funds borrowings occur under established facilities with various federally-insured banking institutions to purchase federal funds. We also have a borrowing facility with various federal agencies which may place funds with us at overnight rates. BankAtlantic uses these facilities on an overnight basis to assist in managing its cash requirements. These advances are collateralized by a security lien against its consumer loans. | |
• | Term auction facilities represent short term borrowings from the Federal Reserve System. These borrowings are collateralized by securities available for sale and are generally at federal fund interest rates which have been lower interest rates than alternative borrowings. | |
• | BankAtlantic’s other borrowings have floating interest rates and consist of a mortgage-backed bond and subordinated debentures. |
As of December 31, 2008 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Carrying | Unrealized | Unrealized | Estimated | |||||||||||||
Value | Appreciation | Depreciation | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 37,116 | — | — | 37,116 | |||||||||||
Equity securities | 1,597 | — | — | 1,597 | ||||||||||||
Private investment securities | 2,036 | 467 | — | 2,503 | ||||||||||||
Total | $ | 40,749 | 467 | — | 41,216 | |||||||||||
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Amount | ||||
(In millions) | ||||
Builder land bank loans | $ | 22 | ||
Land acquisition and development loans | 17 | |||
Land acquisition, development and construction loans | 29 | |||
Commercial | 14 | |||
Total commercial loans | $ | 82 | ||
December 31, 2008 | December 31, 2007 | |||||||||||||||
Full-Time | Part-Time | Full-Time | Part-Time | |||||||||||||
BankAtlantic Bancorp | 6 | — | 7 | — | ||||||||||||
BankAtlantic | 1,698 | 143 | 2,207 | 355 | ||||||||||||
Total | 1,704 | 143 | 2,214 | 355 | ||||||||||||
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• | acquiring another savings institution or its holding company without prior written approval of the OTS; | |
• | acquiring or retaining, with certain exceptions, more than 5% of a non-subsidiary savings institution, a non-subsidiary holding company, or a non-subsidiary company engaged in activities other than those permitted by HOLA; or | |
• | acquiring or retaining control of a depository institution that is not insured by the FDIC. |
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• | mortgage loans secured by residential and commercial real estate; | |
• | commercial and consumer loans; | |
• | certain types of debt securities; and | |
• | certain other assets. |
• | a tangible capital requirement for savings banks to have tangible capital in an amount equal to at least 1.5% of adjusted total assets; | |
• | a leverage ratio requirement: |
• | for savings banks assigned the highest composite rating of 1, to have core capital in an amount equal to at least 3% of adjusted total assets; or | |
• | for savings banks assigned any other composite rating, to have core capital in an amount equal to at least 4% of adjusted total assets, or a higher percentage if warranted by the particular circumstances or risk profile of the savings bank; and |
• | a risk-based capital requirement for savings banks to have capital in an amount equal to at least 8% of risk-weighted assets. |
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• | the size of the savings bank, on which the basic assessment is based; | |
• | the savings bank’s supervisory condition, which results in an additional assessment based on a percentage of the basic assessment for any savings bank with a composite rating of 3, 4 or 5 in its most recent safety and soundness examination; and | |
• | the complexity of the savings bank’s operations, which results in an additional assessment based on a percentage of the basic assessment for any savings bank that has more than $1 billion in trust assets that it administers, loans that it services for others or assets covered by its recourse obligations or direct credit substitutes. |
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• | a lending test, to evaluate the institution’s record of making loans in its designated assessment areas; | |
• | an investment test, to evaluate the institution’s record of investing in community development projects, affordable housing, and programs benefiting low or moderate income individuals and businesses; and | |
• | a service test, to evaluate the institution’s delivery of banking services throughout its designated assessment area. |
• | making or renewing a loan or other extension of credit to an affiliate; | |
• | purchasing, or investing in, a security issued by an affiliate; | |
• | purchasing an asset from an affiliate; | |
• | accepting a security issued by an affiliate as collateral for a loan or other extension of credit to any person or entity; and | |
• | issuing a guarantee, acceptance or letter of credit on behalf of an affiliate. |
• | making a loan or other extension of credit to an affiliate that is engaged in any non-bank holding company activity; and | |
• | purchasing, or investing in, securities issued by an affiliate that is not a subsidiary. |
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• | its total capital is at least 10% of its risk-weighted assets; | |
• | its core capital is at least 6% of its risk-weighted assets; | |
• | its core capital is at least 5% of its adjusted total assets; and | |
• | it is not subject to any written agreement, order, capital directive or prompt corrective action directive issued by the OTS, or certain regulations, to meet or maintain a specific capital level for any capital measure. |
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• | internal policies, procedures and controls designed to implement and maintain the savings bank’s compliance with all of the requirements of the USA PATRIOT Act, the BSA and related laws and regulations; | |
• | systems and procedures for monitoring and reporting of suspicious transactions and activities; | |
• | a designated compliance officer; | |
• | employee training; | |
• | an independent audit function to test the anti-money laundering program; | |
• | procedures to verify the identity of each customer upon the opening of accounts; and | |
• | heightened due diligence policies, procedures and controls applicable to certain foreign accounts and relationships. |
• | require lenders to disclose credit terms in meaningful and consistent ways; | |
• | require financial institutions to establish policies and procedures regarding identity theft and notify customers of certain information concerning their credit reporting; | |
• | prohibit discrimination against an applicant in any consumer or business credit transaction; | |
• | prohibit discrimination in housing-related lending activities; | |
• | require certain lender banks to collect and report applicant and borrower data regarding loans for home purchase or improvement projects; | |
• | require lenders to provide borrowers with information regarding the nature and cost of real estate settlements; | |
• | prohibit certain lending practices and limit escrow account amounts with respect to real estate transactions; and | |
• | prescribe penalties for violations of the requirements of consumer protection statutes and regulations. |
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Miami- | Palm | Tampa | ||||||||||||||
Dade | Broward | Beach | Bay | |||||||||||||
Owned full-service stores | 9 | 13 | 25 | 7 | ||||||||||||
Leased full-service stores | 13 | 11 | 5 | 6 | ||||||||||||
Ground leased full-service stores(1) | 2 | 3 | 1 | 6 | ||||||||||||
Total full-service stores | 24 | 27 | 31 | 19 | ||||||||||||
Lease expiration dates | 2009-2026 | 2009-2015 | 2011-2014 | 2009-2026 | ||||||||||||
Ground lease expiration dates | 2026-2027 | 2017-2072 | 2026 | 2026-2032 | ||||||||||||
(1) | Stores in which BankAtlantic owns the building and leases the land. |
Miami- | Palm | Tampa | Orlando/ | |||||||||||||||||
Dade | Broward | Beach | Bay | Jacksonville | ||||||||||||||||
Leased drive-through facilities | 1 | 2 | — | — | — | |||||||||||||||
Leased drive through expiration dates | 2010 | 2011-2014 | — | — | — | |||||||||||||||
Leased back-office facilities | — | 2 | — | 1 | 1 | |||||||||||||||
Leased back-office expiration dates | — | 2009-2011 | — | 2011 | 2013 | |||||||||||||||
Leased loan production facilities | 1 | — | — | — | — | |||||||||||||||
Leased loan production expiration dates | 2009 | — | — | — | — | |||||||||||||||
Miami- | Palm | Tampa | Orlando/ | |||||||||||||||||
Dade | Broward | Beach | Bay | Jacksonville | ||||||||||||||||
Executed leases for new stores | — | 1 | 1 | — | — | |||||||||||||||
Executed lease expiration dates | — | 2030 | 2029 | — | — | |||||||||||||||
Executed leases held for sublease | — | 1 | — | 5 | 2 | |||||||||||||||
Executed lease expiration dates | — | 2013 | — | 2010-2048 | 2028-2029 | |||||||||||||||
Land held for sale | — | — | 1 | 1 | 4 | |||||||||||||||
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High | Low | |||||||
2007 | ||||||||
First Quarter | $ | 6.10 | $ | 5.00 | ||||
Second Quarter | 4.65 | 3.60 | ||||||
Third Quarter | 3.50 | 2.25 | ||||||
Fourth Quarter | 3.00 | 1.10 | ||||||
2008 | ||||||||
First Quarter | $ | 1.50 | $ | 1.08 | ||||
Second Quarter | 1.20 | .65 | ||||||
Third Quarter | .75 | .52 | ||||||
Fourth Quarter | .55 | .25 | ||||||
2009 | ||||||||
First Quarter | $ | .25 | $ | .25 | ||||
Second Quarter | .51 | .25 | ||||||
Third Quarter (through August 12, 2009) | .40 | .40 |
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Number of Securities | ||||||||||||
Remaining Available for | ||||||||||||
Number of Securities to | Weighted-Average | Future Issuance Under | ||||||||||
be Issued Upon Exercise | Exercise Price of | Equity Compensation Plans | ||||||||||
of Outstanding Options | Outstanding Options | (Excluding Outstanding | ||||||||||
Plan Category | Warrants or Rights | Warrants or Rights | Options) | |||||||||
Equity compensation plans approved by security holders | 1,797,960 | $ | 4.57 | 2,015,804 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 1,797,960 | $ | 4.57 | 2,015,804 | ||||||||
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BankAtlantic Repricing Gap Table | ||||||||||||||||||||
As of December 31, 2008 | ||||||||||||||||||||
1 Year | 3 Years | 5 Years | More Than | |||||||||||||||||
or Less | or Less | or Less | 5 Years | Total | ||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Residential loans(1) | ||||||||||||||||||||
Fixed rate | $ | 221,281 | 127,914 | 65,996 | 236,071 | 651,262 | ||||||||||||||
Hybrids ARM less than 5 years | 64,444 | 40,703 | 6,118 | — | 111,265 | |||||||||||||||
Hybrids ARM more than 5 years | 441,458 | 274,155 | 201,044 | 261,715 | 1,178,372 | |||||||||||||||
Commercial loans | 989,437 | 138,406 | 110,131 | 130,512 | 1,368,486 | |||||||||||||||
Small business loans | 207,950 | 83,499 | 26,676 | 8,155 | 326,280 | |||||||||||||||
Consumer | 712,714 | 7,578 | 4,626 | 21,730 | 746,648 | |||||||||||||||
Total loans | 2,637,284 | 672,255 | 414,591 | 658,183 | 4,382,313 | |||||||||||||||
Investment securities | ||||||||||||||||||||
Mortgage backed securities | 210,711 | 133,679 | 79,576 | 263,626 | 687,592 | |||||||||||||||
Taxable investment securities | 75,412 | 250 | — | 12,761 | 88,423 | |||||||||||||||
Tax certificates | 213,534 | — | — | — | 213,534 | |||||||||||||||
Total investment securities | 499,657 | 133,929 | 79,576 | 276,387 | 989,549 | |||||||||||||||
Total interest earning assets | 3,136,941 | 806,184 | 494,167 | 934,570 | 5,371,862 | |||||||||||||||
Total non-earning assets | — | — | — | 341,828 | 341,828 | |||||||||||||||
Total assets | $ | 3,136,941 | 806,184 | 494,167 | 1,276,398 | 5,713,690 | ||||||||||||||
Total interest bearing liabilities | $ | 2,949,420 | 658,713 | 243,834 | 1,368,893 | 5,220,860 | ||||||||||||||
Non-interest bearing liabilities | — | — | — | 492,830 | 492,830 | |||||||||||||||
Total non-interest bearing liabilities and equity | $ | 2,949,420 | 658,713 | 243,834 | 1,861,723 | 5,713,690 | ||||||||||||||
GAP (repricing difference) | $ | 187,521 | 147,471 | 250,333 | (434,323 | ) | ||||||||||||||
Cumulative GAP | $ | 187,521 | 334,992 | 585,325 | 151,002 | |||||||||||||||
Repricing Percentage | 3.28 | % | 2.58 | % | 4.38 | % | (7.60 | )% | ||||||||||||
Cumulative Percentage | 3.28 | % | 5.86 | % | 10.24 | % | 2.64 | % | ||||||||||||
(1) | Hybrid adjustable rate mortgages (ARM) earn fixed rates for designated periods and adjust annually thereafter based on the one year U.S. Treasury note rate. |
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Year Ending December 31, | Amount(1) | |||
2009 | $ | 44,835 | ||
2010 | 41,413 | |||
2011 | 85,408 | |||
2012 | 81,191 | |||
2013 | 163,330 | |||
Thereafter | 563,436 | |||
Total interest only loans | $ | 979,613 | ||
(1) | The above table assumes no prepayments. |
• | Interest rates, | |
• | Loan prepayment rates, | |
• | Deposit decay rates, | |
• | Re-pricing of certain borrowings, and | |
• | Reinvestment in earning assets. |
• Fixed rate mortgages | 20 | % | ||
• Fixed rate securities | 20 | % | ||
• Tax certificates | 10 | % | ||
• Adjustable rate mortgages | 27 | % | ||
• Adjustable rate securities | 36 | % |
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Within | 1-3 | 3-5 | Over 5 | |||||||||||||
1 Year | Years | Years | Years | |||||||||||||
Money fund savings accounts decay rates | 17 | % | 17 | % | 16 | % | 14 | % | ||||||||
NOW and savings accounts decay rates | 37 | % | 32 | % | 17 | % | 17 | % |
As of December 31, 2008 | ||||||||
Net | ||||||||
Changes | Interest | Percent | ||||||
in Rate | Income | Change | ||||||
+200 bp | $ | 191,139 | (3.99 | )% | ||||
+100 bp | 198,441 | (0.32 | )% | |||||
0 | 199,086 | — | ||||||
−100 bp | 196,893 | (1.10 | )% | |||||
−200 bp | 193,138 | (2.99 | )% |
As of December 31, 2007 | ||||||||
Net | ||||||||
Changes | Interest | Percent | ||||||
in Rate | Income | Change | ||||||
+200 bp | $ | 187,031 | (7.96 | )% | ||||
+100 bp | 198,147 | (2.38 | )% | |||||
0 | 202,876 | — | ||||||
−100 bp | 203,331 | 0.23 | % | |||||
−200 bp | 204,354 | 0.74 | % |
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Name | Position | |
Alan B. Levan | Chairman, Chief Executive Officer and President | |
John E. Abdo | Vice Chairman | |
John K. Grelle | Executive Vice President and Chief Financial Officer | |
Maria R. Scheker | Chief Accounting Officer |
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At and for the Year Ended December 31, 2008 | ||||||||||||||||||||
BankAtlantic | ||||||||||||||||||||
BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Shared service receivable (payable) | (a | ) | $ | 398 | (175 | ) | (115 | ) | (108 | ) | ||||||||||
Shared service income (expense) | (a | ) | $ | 3,157 | (1,593 | ) | (1,135 | ) | (429 | ) | ||||||||||
Facilities cost | (a | ) | $ | (245 | ) | 271 | (101 | ) | 75 | |||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 8 | (80 | ) | 72 | — | ||||||||||||
Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 263 | (4,696 | ) | 4,433 | — |
At and for the Year Ended December 31, 2007 | ||||||||||||||||||||
BankAtlantic | ||||||||||||||||||||
BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Shared service receivable (payable) | (a | ) | $ | 312 | (89 | ) | (119 | ) | (104 | ) | ||||||||||
Shared service income (expense) | (a | ) | $ | 2,855 | (1,406 | ) | (1,006 | ) | (443 | ) | ||||||||||
Facilities cost | (a | ) | $ | (272 | ) | 220 | — | 52 | ||||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 38 | (185 | ) | 147 | — | ||||||||||||
Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 1,217 | (7,335 | ) | 6,118 | — |
At and for the Year Ended December 31, 2006 | ||||||||||||||||||||
BankAtlantic | ||||||||||||||||||||
BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 996 | (5,547 | ) | 4,552 | — | ||||||||||||
Shared service receivable (payable) | (a | ) | $ | 312 | (142 | ) | (107 | ) | (63 | ) | ||||||||||
Shared service income (expense) | (a | ) | $ | 2,035 | (647 | ) | (1,134 | ) | (254 | ) | ||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 43 | (479 | ) | 436 | — |
(a) | Pursuant to the terms of shared service agreements between BFC, BankAtlantic Bancorp and Woodbridge, subsidiaries of BFC provide shared service operations in the areas of human resources, risk management, investor relations, executive office administration and other services to BankAtlantic Bancorp and Woodbridge. Additionally, BFC provides certain risk management and administrative services to Bluegreen. The costs of shared services are allocated based upon the usage of the respective services. Also, as part of the shared service arrangement, BFC pays BankAtlantic Bancorp and Bluegreen for office facilities costs relating to BFC and its shared service operations. | |
In May 2008, BFC and BFC Shared Service Corporation (“BFC Shared Service”), a wholly-owned subsidiary of BFC, entered into office lease agreements with BankAtlantic under which BFC and BFC Shared Service agreed to pay BankAtlantic an annual rent of approximately $294,000 for office space in BankAtlantic’s corporate headquarters. In May 2008, BFC also entered into an office sub-lease agreement with Woodbridge for office space in BankAtlantic’s corporate headquarters pursuant to which Woodbridge agreed to pay BFC an annual rent of approximately $152,000, subject to annual 3% increases. |
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(b) | BFC and Woodbridge entered into securities sold under agreements to repurchase transactions with BankAtlantic in the aggregate of approximately $4.7 million, $7.3 million and $5.5 million at December 31, 2008, 2007 and 2006, respectively. Interest recognized in connection with these transactions was approximately $80,000, $185,000 and $479,000 for the years ended December 31, 2008, 2007 and 2006, respectively. These transactions have similar terms as BankAtlantic’s agreements with unaffiliated parties. Additionally, at December 31, 2008, BankAtlantic facilitated the placement of $49.9 million of certificates of deposits insured by the Federal Deposit Insurance Corporation (the “FDIC”) with other insured depository institutions on Woodbridge’s behalf through the Certificate of Deposit Account Registry Service (“CDARS”) program. The CDARS program facilitates the placement of funds into certificates of deposits issued by other financial institutions in increments of less than the standard FDIC insurance maximum to insure that both principal and interest are eligible for full FDIC insurance coverage. |
As of December 31, 2006 | As of December 31, 2007 | As of December 31, 2008 | ||||||||||||||||||||||
BankAtlantic | Weighted | BankAtlantic | Weighted | BankAtlantic | Weighted | |||||||||||||||||||
Bancorp’s Class A | Average | Bancorp’s Class A | Average | Bancorp’s Class A | Average | |||||||||||||||||||
Common Stock | Exercise Price | Common Stock | Exercise Price | Common Stock | Exercise Price | |||||||||||||||||||
Options outstanding | 61,320 | $ | 52.40 | 53,789 | $ | 49.50 | 53,789 | $ | 48.46 | |||||||||||||||
Options non-vested | 49,029 | $ | 56.95 | 30,917 | $ | 61.60 | 13,610 | $ | 92.85 |
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Change in | ||||||||||||||||||||||||||||||||||
Pension Value | ||||||||||||||||||||||||||||||||||
and | ||||||||||||||||||||||||||||||||||
Non-Equity | Nonqualified | |||||||||||||||||||||||||||||||||
Option | Incentive Plan | Deferred | All Other | |||||||||||||||||||||||||||||||
Bonus | Awards | Compensation | Compensation | Compensation | ||||||||||||||||||||||||||||||
Name and Principal Position | Source(1) | Year | Salary ($) | ($)(2) | ($)(3) | ($)(4) | Earnings ($)(5) | ($)(6) | Total ($) | |||||||||||||||||||||||||
Alan B. Levan, | BFC | 2008 | 677,375 | — | 279,125 | 267,956 | — | 227,863 | 1,452,319 | |||||||||||||||||||||||||
Chairman of the | BBX | 2008 | 541,828 | — | 297,721 | 283,055 | 20,934 | 21,771 | 1,165,309 | |||||||||||||||||||||||||
Board, President and Chief Executive Officer(7) | WDGH | 2008 | 151,218 | 500,000 | 401,449 | — | — | 1,500 | 1,054,167 | |||||||||||||||||||||||||
1,370,421 | 500,000 | 978,295 | 551,011 | 20,934 | 251,134 | 3,671,795 | ||||||||||||||||||||||||||||
BFC | 2007 | 676,345 | — | 312,352 | 809,278 | — | 216,468 | 2,014,443 | ||||||||||||||||||||||||||
BBX | 2007 | 590,480 | — | 351,664 | 21,793 | 53,905 | 21,000 | 1,038,842 | ||||||||||||||||||||||||||
WDGH | 2007 | 400,400 | 6,708 | 372,409 | — | — | 1,500 | 781,017 | ||||||||||||||||||||||||||
1,667,225 | 6,708 | 1,036,425 | 831,071 | 53,905 | 238,968 | 3,834,302 | ||||||||||||||||||||||||||||
John E. Abdo, | BFC | 2008 | 660,739 | — | 279,125 | 223,219 | — | — | 1,163,083 | |||||||||||||||||||||||||
Vice Chairman | BBX | 2008 | 509,274 | — | 198,480 | 281,785 | 12,147 | 9,240 | 1,010,926 | |||||||||||||||||||||||||
of the Board(7) | WDGH | 2008 | 151,218 | 500,000 | 534,538 | — | — | 307,740 | 1,493,496 | |||||||||||||||||||||||||
1,321,231 | 500,000 | 1,012,143 | 505,004 | 12,147 | 316,980 | 3,667,505 | ||||||||||||||||||||||||||||
BFC | 2007 | 590,480 | — | 312,352 | 594,880 | — | — | 1,497,712 | ||||||||||||||||||||||||||
BBX | 2007 | 415,140 | — | 234,443 | 15,240 | 25,849 | 21,675 | 712,347 | ||||||||||||||||||||||||||
WDGH | 2007 | 487,988 | 8,175 | 505,193 | — | — | 303,181 | 1,304,537 | ||||||||||||||||||||||||||
1,493,608 | 8,175 | 1,051,988 | 610,120 | 25,849 | 324,856 | 3,514,596 | ||||||||||||||||||||||||||||
John K. Grelle, | BFC | 2008 | 192,166 | 79,520 | — | — | — | 6,519 | 278,205 | |||||||||||||||||||||||||
Executive | BBX | 2008 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Vice President and Chief | WDGH | 2008 | 145,191 | 54,880 | — | — | — | — | 200,071 | |||||||||||||||||||||||||
Financial Officer(8) | ||||||||||||||||||||||||||||||||||
337,357 | 134,400 | — | — | — | 6,519 | 478,276 | ||||||||||||||||||||||||||||
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(1) | Amounts identified as BFC represent amounts paid or accrued by the Company. Amounts identified as BBX represent amounts paid or accrued by BankAtlantic Bancorp and BankAtlantic. Amounts identified as WDGH represent amounts paid or accrued by Woodbridge. | |
(2) | Amounts for 2008 represent discretionary cash bonuses paid to or accrued on behalf of each BFC Named Executive Officer by Woodbridge (and, for Mr. Grelle, by the Company) based on a subjective evaluation of their overall performance in areas outside those that can be objectively measured from financial results. | |
(3) | All options are to purchase shares of the respective company’s Class A Common Stock. The amounts for 2008 represent the dollar amounts recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), without taking into account an estimate of forfeitures related to service-based vesting of stock option grants, including amounts from awards granted prior to the 2008 fiscal year. Assumptions used in the calculation of these amounts are included in footnote 23 to the Company’s audited financial statements for the fiscal year ended December 31, 2008 included elsewhere in this joint proxy statement/prospectus. There were no forfeitures during 2008. None of the Company, BankAtlantic Bancorp or Woodbridge granted any options to the BFC Named Executive Officers during 2008. | |
(4) | Amounts for 2008 represent, with respect to the Company, cash bonuses granted to each of Messrs. Levan and Abdo under the formula-based component of the Company’s 2008 annual incentive program based on the achievement of pre-established, objective individual and company-wide annual financial performance goals. In addition, the 2008 amounts relating to BankAtlantic Bancorp represent (i) cash bonuses paid to each of Messrs. Levan and Abdo under the formula-based component of BankAtlantic Bancorp’s 2008 annual incentive program as a result of the achievement during the first three quarters of 2008 of the quarterly financial performance objectives of such program related to BankAtlantic Bancorp’s core non-interest expense reductions and (ii) cash bonuses of $4,462 and $3,192 earned by Messrs. Levan and Abdo, respectively, under the BankAtlantic Profit Sharing Stretch Plan with respect to the fourth quarter of 2007, but paid to Messrs. Levan and Abdo during the first quarter of 2008. | |
(5) | Represents the increase in the actuarial present value of accumulated benefits under the Retirement Plan for Employees of BankAtlantic (the “BankAtlantic Retirement Plan”). Additional information regarding the BankAtlantic Retirement Plan is set forth in the narrative accompanying the table entitled “Pension Benefits — 2008” below. | |
(6) | Items included under “All Other Compensation” for 2008 for each of the BFC Named Executive Officers are set forth in the table below: |
Levan | Abdo | Grelle | ||||||||||
BFC | ||||||||||||
Perquisites and other benefits | $ | 74,258 | $ | — | $ | — | ||||||
Amount paid for life and disability insurance premiums | 135,567 | — | — | |||||||||
Amount paid for automobile expenses | 18,038 | — | 6,519 | |||||||||
Total | $ | 227,863 | $ | — | $ | 6,519 | ||||||
BBX | ||||||||||||
Perquisites and other benefits | $ | 303 | $ | — | $ | — | ||||||
Insurance premiums | 12,228 | — | — | |||||||||
Contributions to the retirement and 401(k) plans | 9,200 | 9,200 | — | |||||||||
Dividends on restricted stock, REIT shares | 40 | 40 | — | |||||||||
Total | $ | 21,771 | $ | 9,240 | $ | — | ||||||
WDGH | ||||||||||||
Insurance premiums | $ | 1,500 | $ | 1,500 | $ | — | ||||||
Management fees paid to Abdo Companies, Inc. | — | 306,240 | — | |||||||||
Total | $ | 1,500 | $ | 307,740 | $ | — | ||||||
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The value of perquisites and other benefits included in the rows entitled “Perquisites and other benefits” in the table above is calculated based on their incremental cost to the respective company, which is determined based on the actual cost of providing these perquisites and other benefits. All perquisites and other benefits received in 2008 by Mr. Levan from the Company related to his personal use of the Company’s tickets to entertainment and sporting events. | ||
Amounts included in the row entitled “Insurance premiums” under “BBX” in the table above were paid in connection with BankAtlantic’s Split-Dollar Life Insurance Plan (the “BankAtlantic Split-Dollar Plan”). Additional information regarding the BankAtlantic Split-Dollar Plan is set forth in the narrative accompanying the “Pension Benefits — 2008” table below. | ||
Mr. Abdo is the principal shareholder and Chief Executive Officer of Abdo Companies, Inc. | ||
During 2008, each of Messrs. Levan and Abdo received $1,500 as reimbursement for insurance premiums for waiving participation in Woodbridge’s medical, dental and vision plans. These amounts are included in the row entitled “Insurance premiums” under “WDGH” in the table above. | ||
(7) | During 2008, each of Messrs. Levan and Abdo also received options to acquire 50,000 shares of Bluegreen’s common stock at an exercise price of $9.31 per share, which options are scheduled to vest on May 21, 2013 and expire on May 21, 2018. During 2008, each of Messrs. Levan and Abdo were also granted 71,000 shares of restricted common stock of Bluegreen and options to purchase an additional 71,000 shares of Bluegreen’s common stock at an exercise price of $7.50 per share. These additional options and restricted shares are scheduled to vest on May 21, 2013 (and the options are scheduled to expire on May 21, 2015); however, in the event of achange-in-control of Bluegreen at a price of at least $12.50 per share of common stock, a percentage (of up to 100%) of the options and restricted shares will vest depending on both the timing of thechange-in-control and the actual price for a share of Bluegreen’s common stock in the transaction which results in thechange-in-control. The aggregate grant date fair value of the options granted by Bluegreen to each of Messrs. Levan and Abdo during 2008 computed in accordance with FAS 123(R) was $370,700. The grant date fair value of the restricted stock awards granted by Bluegreen to each of Messrs. Levan and Abdo during 2008 computed in accordance with FAS 123(R) was $495,580. | |
(8) | Mr. Grelle joined the Company as acting Chief Financial Officer on January 11, 2008 and was appointed Executive Vice President and Chief Financial Officer of the Company on May 20, 2008. Mr. Grelle was also appointed Executive Vice President, Chief Financial Officer and principal accounting officer of Woodbridge on May 20, 2008. Because Mr. Grelle was not a named executive officer of BFC for 2007, no compensation information with respect to Mr. Grelle is provided for 2007. |
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Option Awards | ||||||||||||||||||||
Equity | ||||||||||||||||||||
Incentive | ||||||||||||||||||||
Plan Awards: | ||||||||||||||||||||
Number of | Number of | Number of | ||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||
Underlying | Underlying | Underlying | ||||||||||||||||||
Unexercised | Unexercised | Unexercised | Option | Option | ||||||||||||||||
Options | Options | Unearned | Exercise | Expiration | ||||||||||||||||
Name | Exercisable | Unexercisable | Options | Price | Date | |||||||||||||||
Alan B. Levan | 210,579 | (1)(3) | — | N/A | $ | 1.84 | 2/7/2013 | |||||||||||||
— | 93,750 | (1)(4) | 8.40 | 7/28/2014 | ||||||||||||||||
— | 75,000 | (2)(5) | 8.92 | 7/11/2015 | ||||||||||||||||
— | 75,000 | (2)(6) | 6.36 | 6/5/2016 | ||||||||||||||||
— | 75,000 | (2)(7) | 4.44 | 6/4/2017 | ||||||||||||||||
John E. Abdo | 210,579 | (1)(3) | — | N/A | 1.84 | 2/7/2013 | ||||||||||||||
— | 93,750 | (1)(4) | 8.40 | 7/28/2014 | ||||||||||||||||
— | 75,000 | (2)(5) | 8.92 | 7/11/2015 | ||||||||||||||||
— | 75,000 | (2)(6) | 6.36 | 6/5/2016 | ||||||||||||||||
— | 75,000 | (2)(7) | 4.44 | 6/4/2017 |
(1) | Represents options to purchase shares of BFC’s Class B Common Stock. | |
(2) | Represents options to purchase shares of BFC’s Class A Common Stock. | |
(3) | Vested on February 7, 2008. | |
(4) | Vests on July 28, 2009. | |
(5) | Vests on July 11, 2010. | |
(6) | Vests on June 5, 2011. | |
(7) | Vests on June 4, 2012. |
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Option Awards | ||||||||||||||||||||
Equity | ||||||||||||||||||||
Incentive | ||||||||||||||||||||
Plan Awards: | ||||||||||||||||||||
Number of | Number of | Number of | ||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||
Underlying | Underlying | Underlying | ||||||||||||||||||
Unexercised | Unexercised | Unexercised | Option | Option | ||||||||||||||||
Options(1) | Options(1) | Unearned | Exercise | Expiration | ||||||||||||||||
Name | Exercisable | Unexercisable | Options | Price | Date | |||||||||||||||
Alan B. Levan | 15,676 | (2) | N/A | $ | 42.79 | 3/4/2012 | ||||||||||||||
15,676 | (3) | $ | 37.05 | 3/31/2013 | ||||||||||||||||
12,000 | (4) | $ | 91.00 | 7/5/2014 | ||||||||||||||||
12,000 | (5) | $ | 95.10 | 7/11/2015 | ||||||||||||||||
12,000 | (6) | $ | 74.05 | 7/10/2016 | ||||||||||||||||
12,000 | (7) | $ | 46.90 | 6/4/2017 | ||||||||||||||||
John E. Abdo | 10,451 | (2) | N/A | $ | 42.79 | 3/4/2012 | ||||||||||||||
10,451 | (3) | $ | 37.05 | 3/31/2013 | ||||||||||||||||
8,000 | (4) | $ | 91.00 | 7/5/2014 | ||||||||||||||||
8,000 | (5) | $ | 95.10 | 7/11/2015 | ||||||||||||||||
8,000 | (6) | $ | 74.05 | 7/10/2016 | ||||||||||||||||
8,000 | (7) | $ | 46.90 | 6/4/2017 |
(1) | All options are to purchase shares of BankAtlantic Bancorp’s Class A Common Stock. | |
(2) | Vested on March 4, 2007. | |
(3) | Vested on March 31, 2008. | |
(4) | Vests on July 6, 2009. | |
(5) | Vests on July 12, 2010. | |
(6) | Vests on July 11, 2011. | |
(7) | Vests on June 5, 2012. |
Present Value | ||||||||||||||||
Number of Years | of Accumulated | Payments During | ||||||||||||||
Name | Plan Name | Credited Service | Benefit(1) | Last Fiscal Year | ||||||||||||
Alan B. Levan | Retirement Plan for Employees of BankAtlantic | 26 | $ | 988,376 | $ | 0 | ||||||||||
John E. Abdo | Retirement Plan for Employees of BankAtlantic | 14 | 449,510 | 0 |
(1) | Assumptions used in the calculation of these amounts are included in footnote 20 to BankAtlantic Bancorp’s audited financial statements for the fiscal year ended December 31, 2008 included in BankAtlantic Bancorp’s Annual Report onForm 10-K filed with the Securities and Exchange Commission on March 16, |
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2009, except that retirement age was assumed to be 65, the normal retirement age as defined in the BankAtlantic Retirement Plan. |
Estimated Annual Benefits | ||||||||||||||||||||
Years of Credited Service at December 31, 1998 | ||||||||||||||||||||
Average Five Year Compensation at December 31, 1998 | 5 Years | 10 Years | 20 Years | 30 Years | 40 Years | |||||||||||||||
$120,000 | $ | 10,380 | $ | 20,760 | $ | 41,520 | $ | 62,280 | $ | 83,160 | ||||||||||
$150,000 | 13,005 | 26,010 | 52,020 | 78,030 | 104,160 | |||||||||||||||
$160,000 and above | 13,880 | 27,760 | 55,520 | 83,280 | 111,160 |
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Change in | ||||||||||||||||||||||||||||
Pension Value | ||||||||||||||||||||||||||||
Fees | and Nonqualified | |||||||||||||||||||||||||||
Earned | Stock | Option | Non-Equity | Deferred | ||||||||||||||||||||||||
or Paid | Awards | Awards | Incentive Plan | Compensation | All Other | |||||||||||||||||||||||
Name | in Cash ($) | (1)(3)($) | (2)(3)($) | Compensation ($) | Earnings ($) | Compensation ($) | Total ($) | |||||||||||||||||||||
D. Keith Cobb(4) | 60,000 | 50,000 | — | — | — | — | 110,000 | |||||||||||||||||||||
Oscar Holzmann | 65,000 | — | 50,000 | — | — | — | 115,000 | |||||||||||||||||||||
Neil Sterling | 63,500 | — | 50,000 | — | — | — | 113,500 | |||||||||||||||||||||
Earl Pertnoy | 63,500 | 50,000 | — | — | — | — | 113,500 |
(1) | All restricted stock awards are in shares of BFC’s Class A Common Stock. The dollar amount represents the compensation recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), including amounts from awards granted prior to 2008. Assumptions used in the calculation of these amounts are included in footnote 23 to BFC’s audited financial statements for the fiscal year ended December 31, 2008 included elsewhere in this joint proxy statement/prospectus. There were no forfeitures during 2008. The grant date fair value computed in accordance with FAS 123(R) of the restricted stock awards granted to each of Messrs. Cobb and Pertnoy during 2008 was $50,000. |
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(2) | All options are to purchase shares of BFC’s Class A Common Stock and vested fully as of the date of grant. The dollar amount represents the compensation recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), without taking into account an estimate of forfeitures related to service-based vesting of stock option grants, including amounts from awards granted prior to 2008. Assumptions used in the calculation of these amounts are included in footnote 23 to the Company’s audited financial statements for the fiscal year ended December 31, 2008 included elsewhere in this joint proxy statement/prospectus. There were no forfeitures during 2008. The grant date fair value computed in accordance with FAS 123 (R) of the stock option awards granted to each of Messrs. Holzmann and Sterling during 2008 was $50,000. | |
(3) | The table below sets forth the aggregate number of stock options and the aggregate number of shares of restricted stock held as of December 31, 2008 by each non-employee director of BFC during the year ended December 31, 2008: |
Restricted | Stock | |||||||
Name | Stock(a) | Options(b) | ||||||
D. Keith Cobb | 25,100 | 6,250 | ||||||
Oscar Holzmann | — | 171,513 | ||||||
Neil Sterling | — | 171,513 | ||||||
Earl Pertnoy | 25,100 | 34,330 | (c) |
(a) | All restricted stock awards are in shares of BFC’s Class A Common Stock. | |
(b) | Represents options to purchase shares of BFC’s Class A Common Stock or Class B Common Stock as follows: D. Keith Cobb — 6,250 shares of Class B Common Stock; Oscar Holzmann — 151,223 shares of Class A Common Stock and 20,290 shares of Class B Common Stock; Neil Sterling — 151,223 shares of Class A Common Stock and 20,290 shares of Class B Common Stock; and Earl Pertnoy — 34,330 shares of Class B Common Stock. | |
(c) | Represents options held by Pertnoy Parent Limited Partnership. Mr. Pertnoy was the President of Pertnoy Parent, Inc., the General Partner of Pertnoy Parent Limited Partnership. |
(4) | During 2008, Mr. Cobb also received compensation valued at $120,000 for his service as a member of BankAtlantic Bancorp’s board of directors and as Chairman of its audit committee. |
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• | effect an exchange or reclassification of all or part of the shares of BFC’s Class A Common Stock into shares of another class; | |
• | effect an exchange or reclassification, or create a right of exchange, of all or part of the shares of another class into shares of BFC’s Class A Common Stock; | |
• | change the designation, rights, preferences, or limitations of all or part of the shares of BFC’s Class A Common Stock; | |
• | change all or part of the shares of BFC’s Class A Common Stock into a different number of shares of Class A Common Stock; | |
• | create a new class of shares which have rights or preferences with respect to distributions or to dissolution that are prior, superior, or substantially equal to the shares of BFC’s Class A Common Stock; | |
• | increase the rights, preferences, or number of authorized shares of any class that, after giving effect to the amendment, have rights or preferences with respect to distributions or to dissolution that are prior, superior, or substantially equal to the shares of BFC’s Class A Common Stock; | |
• | limit or deny an existing preemptive right of all or part of the shares of BFC’s Class A Common Stock; or | |
• | cancel or otherwise affect rights to distributions or dividends that have accumulated but not yet been declared on all or part of the shares of BFC’s Class A Common Stock. |
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• | the issuance of any additional shares of BFC’s Class B Common Stock, other than a stock dividend issued to holders of the Class B Common Stock; | |
• | the reduction of the number of outstanding shares of BFC’s Class B Common Stock (other than upon conversion of the Class B Common Stock into Class A Common Stock or upon a voluntary disposition to BFC); or | |
• | any amendments of the voting rights provisions of BFC’s Amended and Restated Articles of Incorporation. |
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• | the provisions in BFC’s Amended and Restated Articles of Incorporation regarding the voting rights of the Class B Common Stock; | |
• | the authority of BFC’s board of directors to issue additional shares of preferred stock and to fix the relative rights and preferences of the preferred stock without additional shareholder approval; |
• | the fact that BFC’s board of directors has in the past adopted, and has the authority to and, as discussed below and elsewhere in this joint proxy statement/prospectus, expects to adopt in the future, a shareholder rights plan which, if triggered, will have the effect of causing substantial dilution to a person or group who attempts to acquire BFC on terms not approved by its board of directors; |
• | the current division of BFC’s board of directors into three classes of directors with three-year staggered terms (however, as described throughout this joint proxy statement/prospectus, BFC’s By-laws will be amended in connection with the merger to provide that each director elected or appointed to BFC’s board of directors on or after the date of the amendment will serve for a term expiring at BFC’s next annual meeting of shareholders, such that as a result of this amendment (and subject to any future amendments), following BFC’s 2012 annual meeting of shareholders, BFC’s board of directors will no longer be divided into multiple classes with staggered terms); and | |
• | the advance notice procedures to be complied with by BFC’s shareholders in order to make shareholder proposals or nominate directors. |
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Class A | Class B | Percent of | Percent of | |||||||||||||||||
Common | Common | Class A | Class B | |||||||||||||||||
Stock | Stock | Common | Common | |||||||||||||||||
Name of Beneficial Owner | Notes | Ownership | Ownership | Stock | Stock | |||||||||||||||
I.R.E. Properties, Inc. | (1,2,4,5,10 | ) | 4,662,927 | 561,017 | 13.5 | % | 8.2 | % | ||||||||||||
Alan B. Levan | (1,2,3,4,5,6,10 | ) | 7,243,415 | 3,247,431 | 25.3 | % | 45.4 | % | ||||||||||||
John E. Abdo | (1,2,3,4,6,7,10 | ) | 3,356,771 | 3,273,797 | 16.0 | % | 45.7 | % | ||||||||||||
John K. Grelle | (2 | ) | — | — | 0.0 | % | 0.0 | % | ||||||||||||
D. Keith Cobb | (1,2,3,10 | ) | 97,656 | 6,250 | * | * | ||||||||||||||
Oscar Holzmann | (1,2,3,10 | ) | 164,361 | 20,290 | * | * | ||||||||||||||
Neil Sterling | (1,2,3,10 | ) | 164,361 | 20,290 | * | * | ||||||||||||||
Dr. Herbert A. Wertheim | (1,8,10 | ) | 3,968,157 | 416,448 | 11.3 | % | 6.1 | % | ||||||||||||
SC Fundamental Value Fund L.P. | (9,10 | ) | 3,913,108 | — | 10.2 | % | 0.0 | % | ||||||||||||
All directors and executive officers of BFC as of August 3, 2009 as a group (7 persons) | (1,3,4,5,6,7,10 | ) | 11,026,564 | 6,575,080 | 39.0 | % | 87.5 | % |
* | Less than one percent of class. | |
(1) | BFC’s Class B Common Stock is convertible on a share-for-share basis at any time at the beneficial owner’s discretion. However, see footnote 6 below regarding restrictions on Mr. Abdo’s right to convert his shares of BFC’s Class B Common Stock into shares of BFC’s Class A Common Stock. The number of shares of BFC’s Class B Common Stock held by each beneficial owner is not separately included in the “Class A Common Stock Ownership” column, but is included for the purpose of calculating the percent of BFC’s Class A Common Stock held by each beneficial owner. | |
(2) | Mailing address is 2100 West Cypress Creek Road, Fort Lauderdale, Florida 33309. |
(3) | Includes shares that may be acquired within 60 days after August 3, 2009 pursuant to the exercise of stock options to purchase shares of BFC’s Class A Common Stock or Class B Common Stock as follows: Alan B. Levan — 304,329 shares of Class B Common Stock; John E. Abdo — 304,329 shares of Class B Common Stock; D. Keith Cobb — 6,250 shares of Class B Common Stock; Oscar Holzmann — 151,223 shares of Class A Common Stock and 20,290 shares of Class B Common Stock; Neil Sterling — 151,223 shares of Class A Common Stock and 20,290 shares of Class B Common Stock; and Maria Scheker — 7,022 shares of Class B Common Stock. |
(4) | BFC may be deemed to be controlled by Messrs. Levan and Abdo, who collectively may be deemed to have an aggregate beneficial ownership of shares of BFC’s Class A Common Stock and Class B Common |
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Stock, including shares that may be acquired pursuant to the exercise of stock options (as set forth in footnote 3 above), representing 74.2% of the total voting power of BFC. |
(5) | Mr. Levan’s share ownership includes the shares of BFC’s Class A Common Stock and Class B Common Stock held by I.R.E. Properties, Inc. (as set forth in the table) as well as 1,270,302 shares of BFC’s Class A Common Stock and 133,314 shares of BFC’s Class B Common Stock held by Florida Partners Corporation and 1,298,749 shares of BFC’s Class A Common Stock and 146,865 shares of BFC’s Class B Common Stock held by Levan Enterprises, Ltd. I.R.E. Properties, Inc. is 100% owned by Levan Enterprises, Ltd. and may be deemed to be the controlling shareholder of Florida Partners Corporation. Levan Enterprises, Ltd. is a limited partnership whose sole general partner is Levan General Corp., a corporation 100% owned by Mr. Levan. Mr. Levan’s share ownership also includes 11,437 shares of BFC’s Class A Common Stock and 1,200 shares of BFC’s Class B Common Stock held of record by his wife and 71,250 shares of BFC’s Class B Common Stock subject to a plan adopted under Rule 10b5-1 of the Exchange Act. Collectively, the shares of BFC’s Class A Common Stock and Class B Common Stock beneficially owned by Mr. Levan represent approximately 38.1% of the total voting power of BFC. |
(6) | Messrs. Levan and Abdo have agreed to vote their shares of BFC’s Class B Common Stock in favor of the election of the other to BFC’s board of directors for so long as they are willing and able to serve as directors. Additionally, Mr. Abdo has agreed, subject to certain exceptions, not to transfer certain of his shares of BFC’s Class B Common Stock and to obtain the consent of Mr. Levan prior to the conversion of certain of his shares of BFC’s Class B Common Stock into shares of BFC’s Class A Common Stock. | |
(7) | Includes 75,000 shares of BFC’s Class A Common Stock subject to a plan adopted underRule 10b5-1 of the Exchange Act. | |
(8) | Dr. Wertheim’s ownership was reported in a Rebuttal of Control Agreement filed on December 20, 1996 with the Office of Thrift Supervision (as adjusted for stock splits since the date of filing). The Rebuttal of Control Agreement indicates that Dr. Wertheim has no intention to manage or control, directly or indirectly, BFC. Dr. Wertheim’s mailing address is 191 Leucadendra Drive, Coral Gables, Florida 33156. | |
(9) | Based on the Schedule 13G/A filed with the SEC on May 7, 2009, a group consisting of SC Fundamental Value Fund L.P. and certain of its affiliates have shared voting and dispositive power over all such shares. The mailing address of SC Fundamental Value Fund, L.P. and each of the other group members (other than SC Fundamental Value BVI, Ltd.) is 747 Third Avenue, 27th Floor, New York, New York 10017. The mailing address of SC Fundamental Value BVI, Ltd. isc/o MadisonGrey Fund Services (Cayman) Ltd., P.O. Box 10290, Grand Cayman KY1-1003, Cayman Islands. |
(10) | If the merger described in this joint proxy statement/prospectus is consummated and BFC issues all of the approximately 44.8 million shares of its Class A Common Stock which it may issue in the merger, then the beneficial share ownership, directly or indirectly, of each of BFC’s directors, each person who BFC knows to be the holder of more than 5% of BFC’s Class A Common Stock and BFC’s directors and executive officers as of August 3, 2009 as a group will be as follows (with the number of shares of BFC’s Class A Common Stock excluding, but the calculation of the percentage ownership of BFC’s Class A Common Stock including, the shares of BFC’s Class B Common Stock, if any, held by each such person): I.R.E. Properties, Inc. — 4,662,927 shares, representing 6.2% of, BFC’s Class A Common Stock; Alan B. Levan — 7,312,204 shares, representing 12.2% of, BFC’s Class A Common Stock; John E. Abdo — 3,384,271 shares, representing 7.7% of, BFC’s Class A Common Stock; D. Keith Cobb — 97,656 shares, representing less than 1% of, BFC’s Class A Common Stock; Oscar Holzmann — 164,361 shares, representing less than 1% of, BFC’s Class A Common Stock; Neil Sterling — 164,361 shares, representing less than 1% of, BFC’s Class A Common Stock; Dr. Herbert A. Wertheim — 3,968,157 shares, representing 5.3% of, BFC’s Class A Common Stock; SC Fundamental Value Fund L.P. — 3,913,108 shares, representing 4.7% of, BFC’s Class A Common Stock; and BFC’s directors and executive officers as of August 3, 2009 as a group — 11,122,853 shares, representing 19.7% of, BFC’s Class A Common Stock. |
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AND RESULTS OF OPERATIONS
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Percent | ||||||||||||
Shares | Percent of | of | ||||||||||
Owned | Ownership | Vote | ||||||||||
BankAtlantic Bancorp | ||||||||||||
Class A Common Stock | 2,389,697 | 23.28 | % | 12.34 | % | |||||||
Class B Common Stock | 975,225 | 100.00 | % | 47.00 | % | |||||||
Total | 3,364,922 | 29.94 | % | 59.34 | % | |||||||
Woodbridge Holdings Corporation | ||||||||||||
Class A Common Stock | 3,735,392 | 22.45 | % | 11.90 | % | |||||||
Class B Common Stock | 243,807 | 100.00 | % | 47.00 | % | |||||||
Total | 3,979,199 | 23.57 | % | 58.90 | % |
• | the impact of economic, competitive and other factors affecting the Company and its subsidiaries, and their operations, markets, products and services; | |
• | adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on the activities of the Company and its subsidiaries; | |
• | the Company’s ability to meet its operating needs and provide for its ongoing operating requirements through its cash and cash equivalents, and the Company’s ability to obtain additional funds on attractive terms, if at all, if additional funds are required; | |
• | the performance of entities in which the Company has made investments may not be as anticipated; |
• | BFC is dependent upon dividends from its subsidiaries to fund its operations, and currently BankAtlantic Bancorp and Woodbridge are not paying dividends and may not pay dividends in the future, and even if paid, BFC has historically experienced and may continue to experience negative cash flow; |
• | BFC may need to issue debt or equity securities to fund its operations, and any such securities may not be issued on favorable terms, if at all; |
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• | BFC will be subject to the unique business and industry risks and characteristics of each entity in which an investment is made; and | |
• | BFC shareholders’ interests may be diluted if additional shares of BFC common stock are issued and its interests in its subsidiaries may be diluted if its subsidiaries issue additional shares of common stock. |
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For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
BFC Activities | $ | (1,668 | ) | $ | 1,497 | $ | (3,530 | ) | $ | 3,316 | ||||||
Financial Services | (39,325 | ) | (19,363 | ) | (85,333 | ) | (43,927 | ) | ||||||||
Real Estate Development | 1,467 | (8,877 | ) | 16,104 | (19,230 | ) | ||||||||||
Loss from continuing operations | (39,526 | ) | (26,743 | ) | (72,759 | ) | (59,841 | ) | ||||||||
Discontinued operations, less income tax | — | — | 4,201 | 1,019 | ||||||||||||
Net loss | (39,526 | ) | (26,743 | ) | (68,558 | ) | (58,822 | ) | ||||||||
Less: Net loss attributable to noncontrolling interests | 26,617 | 21,826 | 45,246 | 48,034 | ||||||||||||
Net loss attributable to BFC | (12,909 | ) | (4,917 | ) | (23,312 | ) | (10,788 | ) | ||||||||
5% Preferred stock dividends | (187 | ) | (187 | ) | (375 | ) | (375 | ) | ||||||||
Net loss allocable to common shareholders | $ | (13,906 | ) | $ | (5,104 | ) | $ | (23,687 | ) | $ | (11,163 | ) | ||||
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
BFC Activities | $ | 5,997 | 12,567 | (5,006 | ) | |||||||
Financial Services | (217,646 | ) | (30,012 | ) | 26,879 | |||||||
Real Estate Development | (133,567 | ) | (234,620 | ) | (9,164 | ) | ||||||
Loss from continuing operations before income taxes | (345,216 | ) | (252,065 | ) | 12,709 | |||||||
Discontinued operations, less income tax | 16,605 | 7,160 | (10,535 | ) | ||||||||
Extraordinary gain, less income tax | 9,145 | 2,403 | — | |||||||||
Net (loss) income | (319,466 | ) | (242,502 | ) | 2,174 | |||||||
Net (loss) income attributable to noncontrolling interest | (260,567 | ) | (212,043 | ) | 4,395 | |||||||
Net loss attributable to BFC | $ | (58,899 | ) | (30,459 | ) | (2,221 | ) | |||||
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• | a decrease in cash and cash equivalents of approximately $7.1 million which was primarily due to: (i) Woodbridge’s net decrease in cash and cash equivalents of $56.6 million, primarily related to cash used in operations and investments in time deposits of approximately $40.3 million and (ii) a net decrease in cash and cash equivalents of $3.3 million at BFC, which resulted from cash used in operations of approximately $3.1 million and cash used in financing activities of $375,000 associated with BFC’s 5% Preferred Stock dividend payment, offset in part by higher cash balances at the Federal Reserve Bank associated with daily cash management activities at BankAtlantic; |
• | a decrease in Woodbridge’s restricted cash associated of approximately $13.4 million mainly associated with the settlement payment made in connection with the bankruptcy of Levitt and Sons; |
• | a decrease in securities available for sale reflecting BankAtlantic’s sale of $190.6 million of its mortgage-backed securities, as well as repayments associated with higher residential mortgage refinancings in response to low historical residential mortgage interest rates during the period; |
• | a decrease in BankAtlantic’s tax certificate balances primarily due to redemptions and decreased tax certificate acquisitions compared to prior periods; | |
• | a decline in BankAtlantic’s FHLB stock related to lower FHLB advance borrowings; |
• | higher residential loans held for sale at BankAtlantic primarily resulting from increased originations associated with residential mortgage refinancings; |
• | a decrease in BankAtlantic’s loan receivable balances associated with repayments of residential loans in the normal course of business combined with a significant decline in loan purchases and originations; |
• | a decrease in BankAtlantic’s accrued interest receivable primarily resulting from lower loan balances and a significant decline in interest rates; |
• | an increase in BankAtlantic’s real estate owned associated with commercial real estate and residential loan foreclosures; and |
• | a decrease in BankAtlantic’s goodwill associated with an $8.5 million impairment charge to goodwill, net of purchase accounting adjustment in the amount of $0.6 million. |
• | increased interest bearing deposit account balances at BankAtlantic associated with sales efforts and promotions of higher-yielding interest-bearing checking accounts and increases in certificates of deposits; |
• | higher non-interest-bearing deposit balances at BankAtlantic primarily due to increased customer balances in checking accounts; |
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• | lower FHLB advances and short-term borrowings at BankAtlantic due to repayments using proceeds from the sale of securities and loan repayments and an increase in deposit account balances; |
• | an increase in BankAtlantic Bancorp’s junior subordinated debentures due to interest deferrals; and |
• | a decrease of $52.9 million associated with Woodbridge’s reversal into income of the loss in excess of investment in Levitt and Sons as a result of the Bankruptcy Court’s approval of the Levitt and Sons’ bankruptcy plan. |
• | a decrease in cash and cash equivalents of approximately $78.8 million was primarily as a result of (i) a net decrease in cash and cash equivalents of $9.2 million at BFC, which resulted primarily from cash used in operations of approximately $5.8 million and cash used in investing activities of $2.5 million and (ii) Woodbridge’s net decrease in cash and cash equivalents of $80.4 million, which resulted from cash used in operations of $32.9 million, cash used in investing activities of $41.9 million and cash used in financing activities of $5.6 million. This decrease in cash and cash equivalents was offset in part by BankAtlantic Bancorp’s higher cash and due from depository institution balances resulting from additional cash at automated teller machines and cash on hand; | |
• | an increase in BankAtlantic federal funds sold and short term investments associated with daily treasury management; | |
• | an increase in Woodbridge’s restricted cash primarily related to the funding of the Levitt and Sons Settlement Agreement, providing collateral for a letter of credit as a result of a surety bond claim and the establishment of an interest reserve for one of Core’s loan agreements; | |
• | a decrease in securities available for sale and other financial instruments reflecting BankAtlantic Bancorp’s sale of Stifel common stock, the sale of Stifel warrants and the liquidation of managed fund equity investments and principal repayments on agency securities. This decrease in securities available for sale was offset in part by Woodbridge’s net increase of equity securities of $4.3 million (net of shares sold and impairment charges) relating to its investment in Office Depot and BFC’s net increase in the reclassification of its investment in Benihana Convertible Preferred Stock from investment securities which was carried at cost to investment securities available for sale in accordance with SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities;” | |
• | a decrease in investment securities at cost primarily resulting from BankAtlantic Bancorp’s sale of Stifel common stock and certain private equity securities and BFC’s reclassification of its investment in Benihana Convertible Preferred Stock as discussed above; | |
• | increase in tax certificate balances in BankAtlantic primarily due to higher Florida tax certificate acquisitions; | |
• | a decline in BankAtlantic FHLB stock related to lower FHLB advance borrowings; | |
• | a decrease in BankAtlantic loan receivable balances associated with a $43.2 million increase in the allowance for loan losses as well as lower residential loan balances partially offset by higher small business, commercial business and home equity loan balances; | |
• | lower real estate held for development and sale held by BankAtlantic associated with impairments and the sale of inventory of homes at a real estate development. This decrease in inventory of real estate was partially offset by a net increase of inventory held by Woodbridge of $14.0 million primarily associated with the land development activities of the Land Division; |
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• | a decrease in office properties and equipment primarily due to the sale by BankAtlantic of five central Florida branches to an unrelated financial institution as well as the disposal of properties in connection with the on-going consolidation of back-office facilities, as well as a decrease in Woodbridge property and equipment due to the sale of three ground lease parcels and a depreciation adjustment related to the reclassification into continuing operations of two of Core’s commercial leasing assets previously classified as discontinued operations; | |
• | a decrease in BankAtlantic’s goodwill associated with the recognition of a $46.6 million goodwill impairment (net of purchase accounting of $1.7 million); | |
• | a decrease in deferred tax assets, net due to the establishment of a deferred tax asset valuation allowance; | |
• | an increase in other intangible assets primarily associated with core deposit intangible assets relating to BFC’s “step acquisitions” in BankAtlantic Bancorp in August 2008 and December 2008, which increased BFC’s economic ownership in BankAtlantic Bancorp in the aggregate by approximately 6.5%. Such acquisitions were accounted as step acquisitions under the purchase method. The increase in other intangible assets was also due to Woodbridge’s intangible assets of approximately $4.3 million associated with its acquisition of shares of convertible preferred stock of Pizza Fusion; and | |
• | a decline in other assets primarily resulting from BankAtlantic Bancorp’s and Woodbridge’s receipt of income tax refunds associated with the carry-back of taxable losses for the year ended December 31, 2007. |
• | lower non-interest-bearing deposit balances primarily reflecting the migration of non-interest bearing deposits to interest-bearing NOW accounts as BankAtlantic promoted higher interest rate NOW accounts during 2008 in response to greater competition; | |
• | a decline in BankAtlantic insured savings and money market accounts primarily reflecting deposit outflows resulting from interest rate reductions on higher yield account products as higher rates from prior periods were discontinued; | |
• | an increase in BankAtlantic’s certificate accounts reflecting higher brokered deposit balances as well as a higher interest rate certificate account promotion during 2008; | |
• | lower FHLB advance borrowings at BankAtlantic due to a decline in total assets and the availability of alternative funding sources at lower interest rates; | |
• | higher short-term borrowings at BankAtlantic associated with funds obtained from the Treasury at lower interest rates than alternate funding sources; | |
• | a decrease in Woodbridge’s notes and mortgage notes payable primarily due to curtailment payments made in connection with a development loan collateralized by land in Tradition Hilton Head, offset in part by draws on lines of credit in Woodbridge’s Land Division; and | |
• | decreases in other liabilities primarily resulting from a decline at BankAtlantic in accrued interest payable on borrowings associated with significantly lower interest rates at period end, as well as a decrease in accrued liabilities at Woodbridge which was primarily attributable to decreased severance and construction accruals due to payments made during the year ended December 31, 2008, partially offset by an increase in Woodbridge’s current tax liability of approximately $2.4 million relating to its FIN 48 liability which was netted against current tax asset in 2007. |
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December 31, | ||||||||
2008 | 2007 | |||||||
BankAtlantic Bancorp | $ | 170,888 | 351,148 | |||||
Woodbridge | 91,389 | 207,138 | ||||||
Joint Venture Partnership | 277 | 664 | ||||||
$ | 262,554 | 558,950 | ||||||
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For the Three Months | Change | For the Six Months | Change | |||||||||||||||||||||
Ended June 30, | 2009 vs. | Ended June 30, | 2009 vs. | |||||||||||||||||||||
2009 | 2008 | 2008 | 2009 | 2008 | 2008 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Interest and dividend income | $ | 256 | 342 | (85 | ) | 514 | 762 | (247 | ) | |||||||||||||||
Securities activities, net | — | 103 | (103 | ) | — | 103 | (103 | ) | ||||||||||||||||
Other income, net | 1,009 | 1,208 | (200 | ) | 1,918 | 2,897 | (980 | ) | ||||||||||||||||
1,265 | 1,653 | (388 | ) | 2,432 | 3,762 | (1,330 | ) | |||||||||||||||||
Cost and Expenses | ||||||||||||||||||||||||
Employee compensation and benefits | 2,117 | 2,344 | (227 | ) | 4,313 | 5,504 | (1,191 | ) | ||||||||||||||||
Other expenses | 799 | 937 | (138 | ) | 1,561 | 1,935 | (374 | ) | ||||||||||||||||
2,916 | 3,281 | (365 | ) | 5,874 | 7,439 | (1,565 | ) | |||||||||||||||||
Equity loss from unconsolidated subsidiaries | (17 | ) | (55 | ) | 38 | (88 | ) | (53 | ) | (35 | ) | |||||||||||||
Loss from continuing operations before income taxes | (1,668 | ) | (1,683 | ) | 15 | (3,530 | ) | (3,730 | ) | 200 | ||||||||||||||
Benefit for income taxes | — | (3,180 | ) | 3,180 | — | (7,046 | ) | 7,046 | ||||||||||||||||
(Loss) income from continuing operations | $ | (1,668 | ) | 1,497 | (3,165 | ) | (3,530 | ) | 3,316 | (6,846 | ) | |||||||||||||
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Change | Change | |||||||||||||||||||
For the Years Ended December 31, | 2008 Vs. | 2007 Vs. | ||||||||||||||||||
2008 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Interest and dividend income | $ | 1,376 | 2,374 | 2,292 | (998 | ) | 82 | |||||||||||||
Securities activities | 898 | 1,295 | — | (397 | ) | 1,295 | ||||||||||||||
Other income, net | 4,955 | 4,977 | 3,680 | (22 | ) | 1,297 | ||||||||||||||
7,229 | 8,646 | 5,972 | (1,417 | ) | 2,674 | |||||||||||||||
Cost and Expenses | ||||||||||||||||||||
Employee compensation and benefits | 8,793 | 10,932 | 9,407 | (2,139 | ) | 1,525 | ||||||||||||||
Other expenses, net | 3,600 | 4,340 | 3,428 | (740 | ) | 912 | ||||||||||||||
12,393 | 15,272 | 12,835 | (2,879 | ) | 2,437 | |||||||||||||||
Equity in loss from unconsolidated affiliates | (152 | ) | (78 | ) | — | (74 | ) | (78 | ) | |||||||||||
Impairment of investment | (3,574 | ) | — | — | (3,574 | ) | — | |||||||||||||
Loss before income taxes | (8,890 | ) | (6,704 | ) | (6,863 | ) | (2,186 | ) | 159 | |||||||||||
Benefit for income taxes | (14,887 | ) | (19,271 | ) | (1,857 | ) | 4,384 | (17,414 | ) | |||||||||||
Income (loss) from continuing operations | $ | 5,997 | 12,567 | (5,006 | ) | (6,570 | ) | 17,573 | ||||||||||||
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For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
BFC Activities loss before income taxes | $ | (8,901 | ) | (6,670 | ) | (6,838 | ) | |||||
Subsidiaries not consolidated for income taxes: | ||||||||||||
Equity from (loss) earnings in BankAtlantic Bancorp | (56,230 | ) | (7,206 | ) | 5,807 | |||||||
Equity from loss in Woodbridge | (22,261 | ) | (39,622 | ) | (1,519 | ) | ||||||
Loss before income taxes | (87,392 | ) | (53,498 | ) | (2,550 | ) | ||||||
Benefit for income taxes | (14,887 | ) | (19,271 | ) | (1,857 | ) | ||||||
Net loss | $ | (72,505 | ) | (34,227 | ) | (693 | ) | |||||
Effective tax rate | 17 | % | 36 | % | 73 | % |
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For the Six | ||||||||
Months Ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | (3,050 | ) | (4,356 | ) | |||
Investing activities | 114 | 672 | ||||||
Financing activities | (383 | ) | (385 | ) | ||||
Decrease in cash and cash equivalents | (3,319 | ) | (4,069 | ) | ||||
Cash and cash equivalents at beginning of period | 9,719 | 18,898 | ||||||
Cash and cash equivalents at end of period | $ | 6,400 | 14,829 | |||||
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | (5,859 | ) | (3,267 | ) | (2,292 | ) | |||||
Investing activities | (2,495 | ) | (31,548 | ) | (1,416 | ) | ||||||
Financing activities | (825 | ) | 35,537 | (4,922 | ) | |||||||
Increase (decrease) in cash and cash equivalents | (9,179 | ) | 722 | (8,630 | ) | |||||||
Cash and cash equivalents at beginning of period | 18,898 | 18,176 | 26,806 | |||||||||
Cash and cash equivalents at end of period | $ | 9,719 | 18,898 | 18,176 | ||||||||
• | revenues from shared services activities for affiliated companies; |
• | dividends from Benihana’s Convertible Preferred Stock; |
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• | venture partnership distributions; |
• | revenues from BFC/CCC in 2008; and |
• | dividends from BankAtlantic Bancorp until January 2009. |
• | pay dividends on its outstanding 5% Preferred Stock; | |
• | fund its operating and general and administrative expenses, including shared services costs; and | |
• | solely with respect to the years ended December 31, 2008 and 2007, purchase shares of Woodbridge’s and BankAtlantic Bancorp’s Class A Common Stock; |
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For the Three Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
BankAtlantic | $ | (24,178 | ) | (14,059 | ) | (10,119 | ) | |||||
Parent Company | (14,178 | ) | (5,304 | ) | (8,874 | ) | ||||||
Net loss | $ | (38,356 | ) | (19,363 | ) | (18,993 | ) | |||||
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For the Six Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
BankAtlantic | $ | (64,767 | ) | (31,040 | ) | (33,727 | ) | |||||
Parent Company | (20,200 | ) | (12,887 | ) | (7,313 | ) | ||||||
Net loss | $ | (84,967 | ) | (43,927 | ) | (41,040 | ) | |||||
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Average Balance Sheet - Yield / Rate Analysis | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
June 30, 2009 | June 30, 2008 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Total loans | $ | 4,226,918 | 47,585 | 4.50 | $ | 4,470,868 | 61,466 | 5.50 | ||||||||||||||||
Investments | 702,931 | 9,405 | 5.35 | 1,098,822 | 16,615 | 6.05 | ||||||||||||||||||
Total interest earning assets | 4,929,849 | 56,990 | 4.62 | % | 5,569,690 | 78,081 | 5.61 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 16,618 | 75,401 | ||||||||||||||||||||||
Other non-interest earning assets | 324,435 | 433,038 | ||||||||||||||||||||||
Total Assets | $ | 5,270,902 | $ | 6,078,129 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 451,122 | 390 | 0.35 | % | $ | 552,094 | 1,284 | 0.94 | % | ||||||||||||||
NOW | 1,159,531 | 1,812 | 0.63 | 941,964 | 1,898 | 0.81 | ||||||||||||||||||
Money market | 412,065 | 674 | 0.66 | 617,013 | 2,427 | 1.58 | ||||||||||||||||||
Certificates of deposit | 1,256,299 | 8,651 | 2.76 | 917,133 | 8,899 | 3.90 | ||||||||||||||||||
Total interest bearing deposits | 3,279,017 | 11,527 | 1.41 | 3,028,204 | 14,508 | 1.93 | ||||||||||||||||||
Short-term borrowed funds | 65,604 | 27 | 0.17 | 166,031 | 788 | 1.91 | ||||||||||||||||||
Advances from FHLB | 625,254 | 5,082 | 3.26 | 1,389,835 | 12,433 | 3.60 | ||||||||||||||||||
Long-term debt | 22,779 | 276 | 4.86 | 26,274 | 429 | 6.57 | ||||||||||||||||||
Total interest bearing liabilities | 3,992,654 | 16,912 | 1.70 | 4,610,344 | 28,158 | 2.46 | ||||||||||||||||||
Demand deposits | 810,031 | 878,906 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 62,835 | 45,770 | ||||||||||||||||||||||
Total Liabilities | 4,865,520 | 5,535,020 | ||||||||||||||||||||||
Stockholder’s equity | 405,382 | 543,109 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,270,902 | $ | 6,078,129 | ||||||||||||||||||||
Net interest income/ net interest spread | $ | 40,078 | 2.92 | % | $ | 49,923 | 3.15 | % | ||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 4.62 | % | 5.61 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 1.38 | 2.03 | ||||||||||||||||||||||
Net interest margin | 3.24 | % | 3.58 | % | ||||||||||||||||||||
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Average Balance Sheet - Yield / Rate Analysis | ||||||||||||||||||||||||
For the Six Months Ended | ||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Total loans | $ | 4,291,012 | 97,191 | 4.53 | $ | 4,554,307 | 129,602 | 5.69 | ||||||||||||||||
Investments | 818,790 | 22,208 | 5.42 | 1,065,268 | 31,837 | 5.98 | ||||||||||||||||||
Total interest earning assets | 5,109,802 | 119,399 | 4.67 | % | 5,619,575 | 161,439 | 5.75 | |||||||||||||||||
Goodwill and core deposit intangibles | 21,269 | 75,560 | ||||||||||||||||||||||
Other non-interest earning assets | 340,386 | 424,767 | ||||||||||||||||||||||
Total Assets | $ | 5,471,457 | $ | 6,119,902 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 446,227 | 890 | 0.40 | % | $ | 559,271 | 3,302 | 1.19 | |||||||||||||||
NOW | 1,103,634 | 3,226 | 0.59 | 934,173 | 4,581 | 0.99 | ||||||||||||||||||
Money market | 416,947 | 1,447 | 0.70 | 613,038 | 5,585 | 1.83 | ||||||||||||||||||
Certificates of deposit | 1,278,057 | 18,951 | 2.99 | 954,605 | 19,633 | 4.14 | ||||||||||||||||||
Total deposits | 3,244,865 | 24,514 | 1.52 | 3,061,087 | 33,101 | 2.17 | ||||||||||||||||||
Short-term borrowed funds | 171,319 | 208 | 0.24 | 167,386 | 2,113 | 2.54 | ||||||||||||||||||
Advances from FHLB | 763,398 | 12,246 | 3.23 | 1,406,790 | 27,379 | 3.91 | ||||||||||||||||||
Long-term debt | 22,799 | 584 | 5.17 | 26,365 | 918 | 7.00 | ||||||||||||||||||
Total interest bearing liabilities | 4,202,381 | 37,552 | 1.80 | 4,661,628 | 63,511 | 2.74 | ||||||||||||||||||
Demand deposits | 793,098 | 866,834 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 62,184 | 47,298 | ||||||||||||||||||||||
Total Liabilities | 5,057,663 | 5,575,760 | ||||||||||||||||||||||
Stockholder’s equity | 413,794 | 544,142 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,471,457 | $ | 6,119,902 | ||||||||||||||||||||
Net interest income/net | ||||||||||||||||||||||||
interest spread | $ | 81,847 | 2.87 | % | $ | 97,928 | 3.01 | |||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 4.67 | % | 5.75 | |||||||||||||||||||||
Interest expense/interest earning assets | 1.48 | 2.27 | ||||||||||||||||||||||
Net interest margin | 3.19 | % | 3.48 | |||||||||||||||||||||
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June 30, | December 31, | |||||||
2009 | 2008 | |||||||
NONPERFORMING ASSETS | ||||||||
Nonaccrual: | ||||||||
Tax certificates | $ | 3,091 | 1,441 | |||||
Loans(3) | 295,448 | 208,088 | ||||||
Total nonaccrual | 298,539 | 209,529 | ||||||
Repossessed assets: | ||||||||
Real estate owned | 30,213 | 19,045 | ||||||
Other repossessed assets | 23 | — | ||||||
Total nonperforming assets, net | $ | 328,775 | 228,574 | |||||
Allowances | ||||||||
Allowance for loan losses | $ | 156,821 | 125,572 | |||||
Allowance for tax certificate losses | 7,508 | 6,064 | ||||||
Total allowances | $ | 164,329 | 131,636 | |||||
POTENTIAL PROBLEM LOANS | ||||||||
Contractually past due 90 days or more(1) | $ | 12,654 | 15,721 | |||||
Performing impaired loans(2) | 83,612 | — | ||||||
Troubled debt restructured loans | 63,057 | 25,843 | ||||||
TOTAL POTENTIAL PROBLEM LOANS | $ | 159,323 | 41,564 | |||||
(1) | The majority of these loans have matured and the borrowers continue to make payments under the matured agreements. |
(2) | BankAtlantic believes that it will ultimately collect all of the principal and interest associated with these loans; however, the timing of the payments may not be in accordance with the contractual terms of the loan agreement. |
(3) | Includes $44.8 million and $0 of troubled debt restructured loans as of June 30, 2009 and December 31, 2008, respectively. |
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As of June 30, 2009 | As of December 31, 2008 | |||||||||||||||
Non-accrual | Accruing | Non-accrual | Accruing | |||||||||||||
Commercial | $ | 33,811 | 45,399 | — | 25,843 | |||||||||||
Small business | 4,159 | 5,708 | — | — | ||||||||||||
Consumer | 668 | 9,989 | — | — | ||||||||||||
Residential | 6,137 | 1,961 | — | — | ||||||||||||
Total | $ | 44,775 | 63,057 | — | 25,843 | |||||||||||
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June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Commercial | $ | 32,252 | 29,208 | |||||
Small business | 435 | 300 | ||||||
Consumer | 2,551 | — | ||||||
Residential | 8,088 | — | ||||||
Total | $ | 43,326 | 29,508 | |||||
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Balance, beginning of period | $ | 146,639 | 83,396 | 125,572 | 94,020 | |||||||||||
Charge-offs | ||||||||||||||||
Residential | (3,923 | ) | (1,027 | ) | (8,511 | ) | (1,651 | ) | ||||||||
Commercial | (10,530 | ) | (14,501 | ) | (16,095 | ) | (55,092 | ) | ||||||||
Commercial business | (516 | ) | — | (516 | ) | — | ||||||||||
Consumer | (9,118 | ) | (7,225 | ) | (19,439 | ) | (12,061 | ) | ||||||||
Small business | (2,347 | ) | (464 | ) | (5,118 | ) | (1,660 | ) | ||||||||
Total Charge-offs | (26,434 | ) | (23,217 | ) | (49,679 | ) | (70,464 | ) | ||||||||
Recoveries of loans previously charged-off | 661 | 444 | 1,453 | 619 | ||||||||||||
Net (charge-offs) | (25,773 | ) | (22,773 | ) | (48,226 | ) | (69,845 | ) | ||||||||
Transfer of specific reserves to Parent Company | — | — | — | (6,440 | ) | |||||||||||
Provision for loan losses | 35,955 | 37,801 | 79,475 | 80,689 | ||||||||||||
Balance, end of period | $ | 156,821 | 98,424 | 156,821 | 98,424 | |||||||||||
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For the Three Months | For the Six Months | |||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||
2009 | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Service charges on deposits | $ | 19,347 | 24,466 | (5,119 | ) | 38,032 | 48,480 | (10,448 | ) | |||||||||||||||
Other service charges and fees | 8,059 | 7,121 | 938 | 15,084 | 14,554 | 530 | ||||||||||||||||||
Securities activities, net | 2,067 | 1,960 | 107 | 6,387 | 2,301 | 4,086 | ||||||||||||||||||
Income from unconsolidated | 103 | 147 | (44 | ) | 181 | 1,260 | (1,079 | ) | ||||||||||||||||
subsidiaries | ||||||||||||||||||||||||
Other | 3,200 | 3,034 | 166 | 5,957 | 5,686 | 271 | ||||||||||||||||||
Non-interest income | $ | 32,776 | 36,728 | (3,952 | ) | 65,641 | 72,281 | (6,640 | ) | |||||||||||||||
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For the Three Months | For the Six Months | |||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||
2009 | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Employee compensation and benefits | $ | 24,985 | 32,118 | (7,133 | ) | 53,063 | 66,361 | (13,298 | ) | |||||||||||||||
Occupancy and equipment | 14,842 | 16,171 | (1,329 | ) | 29,752 | 32,554 | (2,802 | ) | ||||||||||||||||
Advertising and business promotion | 1,846 | 3,564 | (1,718 | ) | 4,627 | 8,425 | (3,798 | ) | ||||||||||||||||
Check losses | 991 | 2,101 | (1,110 | ) | 1,835 | 4,819 | (2,984 | ) | ||||||||||||||||
Professional fees | 2,336 | 2,004 | 332 | 5,280 | 4,264 | 1,016 | ||||||||||||||||||
Supplies and postage | 991 | 1,281 | (290 | ) | 1,991 | 2,284 | (293 | ) | ||||||||||||||||
Telecommunication | 580 | 1,326 | (746 | ) | 1,274 | 2,822 | (1,548 | ) | ||||||||||||||||
Cost associated with debt redemption | 1,441 | 1 | 1,440 | 2,032 | 2 | 2,030 | ||||||||||||||||||
Restructuring charges and exit activities | 1,406 | 5,762 | (4,356 | ) | 3,280 | 5,597 | (2,317 | ) | ||||||||||||||||
Provision for tax certificates | 1,414 | 924 | 490 | 2,900 | 807 | 2,093 | ||||||||||||||||||
Impairment of real estate owned | 411 | 190 | 221 | 623 | 240 | 383 | ||||||||||||||||||
Impairment of goodwill | — | — | — | 9,124 | — | 9,124 | ||||||||||||||||||
FDIC special assessment | 2,428 | — | 2,428 | 2,428 | — | 2,428 | ||||||||||||||||||
Other | 7,406 | 6,895 | 511 | 14,571 | 12,788 | 1,783 | ||||||||||||||||||
Total non-interest expense | $ | 61,077 | 72,337 | (11,260 | ) | 132,780 | 140,963 | (8,183 | ) | |||||||||||||||
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For the Three Months | For the Six Months | |||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||
2009 | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Net interest expense | $ | (3,807 | ) | (4,324 | ) | 517 | (7,828 | ) | (9,698 | ) | 1,870 | |||||||||||||
Provision for loan losses | (7,539 | ) | (9,446 | ) | 1,907 | (8,296 | ) | (9,446 | ) | 1,150 | ||||||||||||||
Net interest expense after provision | ||||||||||||||||||||||||
for loan losses | (11,346 | ) | (13,770 | ) | 2,424 | (16,124 | ) | (19,144 | ) | 3,020 | ||||||||||||||
Non-interest income | (973 | ) | 7,414 | (8,387 | ) | (513 | ) | 2,768 | (3,281 | ) | ||||||||||||||
Non-interest expense | 1,859 | 1,666 | 193 | 3,563 | 3,341 | 222 | ||||||||||||||||||
Loss before income taxes | (14,178 | ) | (8,022 | ) | (6,156 | ) | (20,200 | ) | (19,717 | ) | (483 | ) | ||||||||||||
Income tax benefit | — | (2,718 | ) | 2,718 | — | (6,830 | ) | 6,830 | ||||||||||||||||
Parent company loss | $ | (14,178 | ) | (5,304 | ) | (8,874 | ) | (20,200 | ) | (12,887 | ) | (7,313 | ) | |||||||||||
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June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Nonaccrual loans: | ||||||||
Commercial residential real estate: | ||||||||
Builder land loans | $ | 17,471 | 22,019 | |||||
Land acquisition and development | 16,685 | 16,759 | ||||||
Land acquisition, development and construction | 24,795 | 29,163 | ||||||
Total commercial residential real estate | 58,951 | 67,941 | ||||||
Commercial non-residential real estate | 5,607 | 11,386 | ||||||
Total non-accrual loans | 64,558 | 79,327 | ||||||
Allowance for loan losses — specific reserves | (15,399 | ) | (11,685 | ) | ||||
Non-accrual loans, net | 49,159 | 67,642 | ||||||
Performing commercial non-residential loans | 3,352 | 2,259 | ||||||
Loans receivable, net | $ | 52,511 | 69,901 | |||||
For the Three | For the Six | |||||||||||||||
Months Ended | Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Balance, beginning of period | $ | 11,758 | 6,440 | 11,685 | — | |||||||||||
Loans charged-off | (3,898 | ) | (8,184 | ) | (4,582 | ) | (8,184 | ) | ||||||||
Recoveries of loans previously charged-off | — | — | — | — | ||||||||||||
Net (charge-offs) | (3,898 | ) | �� | (8,184 | ) | (4,582 | ) | (8,184 | ) | |||||||
Reserves transferred from BankAtlantic | — | — | — | 6,440 | ||||||||||||
Provision for loan losses | 7,539 | 9,446 | 8,296 | 9,446 | ||||||||||||
Balance, end of period | $ | 15,399 | 7,702 | 15,399 | 7,702 | |||||||||||
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For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
BankAtlantic | $ | (166,144 | ) | (19,440 | ) | 36,322 | ||||||
Parent Company | (53,100 | ) | (10,572 | ) | (9,443 | ) | ||||||
Net (loss) income | $ | (219,244 | ) | (30,012 | ) | 26,879 | ||||||
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Change | Change | |||||||||||||||||||
For the Years Ended December 31, | 2008 vs | 2007 vs | ||||||||||||||||||
2008 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||
Net interest income | $ | 193,648 | 199,510 | 219,605 | (5,862 | ) | (20,095 | ) | ||||||||||||
Provision for loan losses | (135,383 | ) | (70,842 | ) | (8,574 | ) | (64,541 | ) | (62,268 | ) | ||||||||||
Net income after provision for loan losses | 58,265 | 128,668 | 211,031 | (70,403 | ) | (82,363 | ) | |||||||||||||
Non-interest income | 137,308 | 144,412 | 131,844 | (7,104 | ) | 12,568 | ||||||||||||||
Non-interest expense | (330,623 | ) | (313,898 | ) | (293,448 | ) | (16,725 | ) | (20,450 | ) | ||||||||||
BankAtlantic (loss) income before income taxes | (135,050 | ) | (40,818 | ) | 49,427 | (94,232 | ) | (90,245 | ) | |||||||||||
(Provision)/benefit for income taxes | (31,094 | ) | 21,378 | (13,105 | ) | (52,472 | ) | 34,483 | ||||||||||||
BankAtlantic net (loss) contribution | $ | (166,144 | ) | (19,440 | ) | 36,322 | (146,704 | ) | (55,762 | ) | ||||||||||
For the Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, 2008 | December 31, 2007 | December 31, 2006 | ||||||||||||||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||||||
(Dollars are in thousands) | ||||||||||||||||||||||||||||||||||||
Interest earning assets | ||||||||||||||||||||||||||||||||||||
Loans:(a) | ||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 2,053,645 | 111,691 | 5.44 | % | $ | 2,209,832 | 120,768 | 5.47 | % | $ | 2,099,664 | 109,103 | 5.20 | % | |||||||||||||||||||||
Commercial real estate | 1,238,307 | 69,642 | 5.62 | 1,367,095 | 108,931 | 7.97 | 1,530,282 | 128,420 | 8.39 | |||||||||||||||||||||||||||
Consumer | 743,863 | 33,950 | 4.56 | 650,764 | 47,625 | 7.32 | 558,769 | 41,997 | 7.52 | |||||||||||||||||||||||||||
Commercial business | 132,565 | 9,516 | 7.18 | 142,455 | 12,720 | 8.93 | 140,465 | 12,452 | 8.86 | |||||||||||||||||||||||||||
Small business | 320,853 | 22,162 | 6.91 | 298,774 | 23,954 | 8.02 | 259,816 | 20,988 | 8.08 | |||||||||||||||||||||||||||
Total loans | 4,489,233 | 246,961 | 5.50 | 4,668,920 | 313,998 | 6.73 | 4,588,996 | 312,960 | 6.82 | |||||||||||||||||||||||||||
Tax exempt securities(c) | — | — | — | 328,583 | 19,272 | 5.87 | 396,539 | 23,162 | 5.84 |
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For the Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, 2008 | December 31, 2007 | December 31, 2006 | ||||||||||||||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||||||
(Dollars are in thousands) | ||||||||||||||||||||||||||||||||||||
Taxable investment securities(b) | 1,078,189 | 65,570 | 6.08 | 689,263 | 42,849 | 6.22 | 618,913 | 36,912 | 5.96 | |||||||||||||||||||||||||||
Federal funds sold | 44,031 | 754 | 1.71 | 3,638 | 195 | 5.36 | 1,824 | 22 | 1.21 | |||||||||||||||||||||||||||
Total investment securities | 1,122,220 | 66,324 | 5.91 | 1,021,484 | 62,316 | 6.10 | 1,017,276 | 60,096 | 5.91 | |||||||||||||||||||||||||||
Total interest earning assets | 5,611,453 | 313,285 | 5.58 | % | 5,690,404 | 376,314 | 6.61 | % | 5,606,272 | 373,056 | 6.65 | % | ||||||||||||||||||||||||
Total non-interest earning assets | 503,028 | 510,173 | 448,296 | |||||||||||||||||||||||||||||||||
Total assets | $ | 6,114,481 | $ | 6,200,577 | $ | 6,054,568 | ||||||||||||||||||||||||||||||
Interest bearing liabilities | ||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||
Savings | $ | 503,464 | 4,994 | 0.99 | % | $ | 584,542 | 12,559 | 2.15 | % | $ | 369,504 | 2,936 | 0.79 | % | |||||||||||||||||||||
NOW, money funds and checking | 1,506,479 | 17,784 | 1.18 | 1,450,960 | 26,031 | 1.79 | 1,502,058 | 20,413 | 1.36 | |||||||||||||||||||||||||||
Certificate accounts | 1,088,170 | 41,485 | 3.81 | 992,043 | 45,886 | 4.63 | 868,777 | 35,610 | 4.10 | |||||||||||||||||||||||||||
Total interest bearing deposits | 3,098,113 | 64,263 | 2.07 | 3,027,545 | 84,476 | 2.79 | 2,740,339 | 58,959 | 2.15 | |||||||||||||||||||||||||||
Securities sold under agreements to repurchase, federal funds and other short term borrowings | 141,654 | 2,699 | 1.91 | 194,222 | 9,829 | 5.06 | 304,635 | 15,309 | 5.03 | |||||||||||||||||||||||||||
Advances from FHLB | 1,417,718 | 50,942 | 3.59 | 1,379,106 | 73,256 | 5.31 | 1,265,772 | 66,492 | 5.25 | |||||||||||||||||||||||||||
Subordinated debentures and notes payable | 26,004 | 1,733 | 6.66 | 28,946 | 2,498 | 8.63 | 66,287 | 5,513 | 8.32 | |||||||||||||||||||||||||||
Total interest bearing liabilities | 4,683,489 | 119,637 | 2.55 | 4,629,819 | 170,059 | 3.67 | 4,377,033 | 146,273 | 3.34 | |||||||||||||||||||||||||||
Non-interest bearing liabilities | ||||||||||||||||||||||||||||||||||||
Demand deposit and escrow accounts | 828,825 | 946,356 | 1,056,254 | |||||||||||||||||||||||||||||||||
Other liabilities | 50,584 | 55,683 | 61,392 | |||||||||||||||||||||||||||||||||
Total non-interest bearing liabilities | 879,409 | 1,002,039 | 1,117,646 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 551,583 | 568,719 | 559,889 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,114,481 | $ | 6,200,577 | $ | 6,054,568 | ||||||||||||||||||||||||||||||
Net interest income/net interest spread | 193,648 | 3.03 | % | 206,255 | 2.94 | % | 226,683 | 3.31 | % | |||||||||||||||||||||||||||
Tax equivalent adjustment | — | (6,745 | ) | (8,107 | ) | |||||||||||||||||||||||||||||||
Capitalized interest from real estate operations | — | — | 929 | |||||||||||||||||||||||||||||||||
Net interest income | 193,648 | 199,510 | 219,605 | |||||||||||||||||||||||||||||||||
Margin | ||||||||||||||||||||||||||||||||||||
Interest income/average interest earning assets | 5.58 | % | 6.61 | % | 6.65 | % | ||||||||||||||||||||||||||||||
Interest expense/average interest earning assets | 2.13 | 2.99 | 2.61 | |||||||||||||||||||||||||||||||||
Tax equivalent net interest margin | 3.45 | % | 3.62 | % | 4.04 | % | ||||||||||||||||||||||||||||||
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(a) | Includes non-accruing loans. | |
(b) | Average balances were based on amortized cost. | |
(c) | The tax equivalent basis is computed using a 35% tax rate. |
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Year Ended | Year Ended | |||||||||||||||||||||||
December 31, 2008 | December 31, 2007 | |||||||||||||||||||||||
Compared to | Compared to | |||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||||||||||||||
Volume(a) | Rate | Total | Volume(a) | Rate | Total | |||||||||||||||||||
Increase (decrease) due to: | ||||||||||||||||||||||||
Loans | $ | (9,885 | ) | (57,152 | ) | (67,037 | ) | 5,375 | (4,337 | ) | 1,038 | |||||||||||||
Tax exempt securities | — | (19,272 | ) | (19,272 | ) | (3,986 | ) | 96 | (3,890 | ) | ||||||||||||||
Taxable investment securities(b) | 23,652 | (931 | ) | 22,721 | 4,373 | 1,564 | 5,937 | |||||||||||||||||
Federal funds sold | 692 | (133 | ) | 559 | 97 | 76 | 173 | |||||||||||||||||
Total earning assets | 14,459 | (77,488 | ) | (63,029 | ) | 5,859 | (2,601 | ) | 3,258 | |||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | (804 | ) | (6,761 | ) | (7,565 | ) | 4,620 | 5,003 | 9,623 | |||||||||||||||
NOW, money funds, and checking | 655 | (8,902 | ) | (8,247 | ) | (917 | ) | 6,535 | 5,618 | |||||||||||||||
Certificate accounts | 3,665 | (8,066 | ) | (4,401 | ) | 5,702 | 4,574 | 10,276 | ||||||||||||||||
Total deposits | 3,516 | (23,729 | ) | (20,213 | ) | 9,405 | 16,112 | 25,517 | ||||||||||||||||
Securities sold under agreements to repurchase | (1,002 | ) | (6,128 | ) | (7,130 | ) | (5,588 | ) | 108 | (5,480 | ) | |||||||||||||
Advances from FHLB | 1,387 | (23,701 | ) | (22,314 | ) | 6,020 | 744 | 6,764 | ||||||||||||||||
Subordinated debentures | (196 | ) | (569 | ) | (765 | ) | (3,222 | ) | 207 | (3,015 | ) | |||||||||||||
189 | (30,398 | ) | (30,209 | ) | (2,790 | ) | 1,059 | (1,731 | ) | |||||||||||||||
Total interest bearing liabilities | 3,705 | (54,127 | ) | (50,422 | ) | 6,615 | 17,171 | 23,786 | ||||||||||||||||
Change in tax equivalent interest income | $ | 10,754 | (23,361 | ) | (12,607 | ) | (756 | ) | (19,772 | ) | (20,528 | ) | ||||||||||||
(a) | Changes attributable to rate/volume have been allocated to volume. | |
(b) | Average balances were based on amortized cost. |
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For the Years Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Balance, beginning of period | $ | 94,020 | 43,602 | 41,192 | 46,010 | 45,595 | ||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial business loans | — | — | — | — | — | |||||||||||||||
Commercial real estate loans | (60,057 | ) | (12,562 | ) | (7,000 | ) | — | (645 | ) | |||||||||||
Small business | (4,886 | ) | (2,554 | ) | (951 | ) | (764 | ) | (238 | ) | ||||||||||
Consumer loans | (28,942 | ) | (7,065 | ) | (681 | ) | (259 | ) | (585 | ) | ||||||||||
Residential real estate loans | (4,816 | ) | (461 | ) | (239 | ) | (453 | ) | (582 | ) | ||||||||||
Continuing loan products | (98,701 | ) | (22,642 | ) | (8,871 | ) | (1,476 | ) | (2,050 | ) | ||||||||||
Discontinued loan products | — | — | (34 | ) | (1,218 | ) | (2,026 | ) | ||||||||||||
Total charge-offs | (98,701 | ) | (22,642 | ) | (8,905 | ) | (2,694 | ) | (4,076 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial business loans | 7 | 96 | 291 | 18 | 536 | |||||||||||||||
Commercial real estate loans | — | 304 | 419 | 1,471 | 4,052 | |||||||||||||||
Small business | 428 | 417 | 566 | 899 | 418 | |||||||||||||||
Consumer loans | 365 | 578 | 536 | 401 | 370 | |||||||||||||||
Residential real estate loans | 397 | 15 | 348 | 65 | 486 | |||||||||||||||
Continuing loan products | 1,197 | 1,410 | 2,160 | 2,854 | 5,862 | |||||||||||||||
Discontinued loan products | 113 | 808 | 581 | 1,637 | 3,738 | |||||||||||||||
Total recoveries | 1,310 | 2,218 | 2,741 | 4,491 | 9,600 | |||||||||||||||
Net (charge-offs) recoveries | (97,391 | ) | (20,424 | ) | (6,164 | ) | 1,797 | 5,524 | ||||||||||||
Provision for (recovery from) loan losses | 135,383 | 70,842 | 8,574 | (6,615 | ) | (5,109 | ) | |||||||||||||
Transfer specific reserves to Parent Company | (6,440 | ) | — | — | — | — | ||||||||||||||
Balance, end of period | $ | 125,572 | 94,020 | 43,602 | 41,192 | 46,010 | ||||||||||||||
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December 31, 2008 | December 31, 2007 | December 31, 2006 | ||||||||||||||||||||||||||||||||||
All | Loans | All | Loans | All | Loans | |||||||||||||||||||||||||||||||
to Gross | by | to Gross | by | to Gross | by | |||||||||||||||||||||||||||||||
All | Loans | Category | All | Loans | Category | All | Loans | Category | ||||||||||||||||||||||||||||
by | in Each | to Gross | by | in Each | to Gross | by | in Each | to Gross | ||||||||||||||||||||||||||||
Category | Category | Loans | Category | Category | Loans | Category | Category | Loans | ||||||||||||||||||||||||||||
Commercial business | $ | 3,173 | 2.22 | % | 3.15 | % | 2,668 | 2.04 | % | 2.65 | % | 2,359 | 1.50 | % | 3.07 | % | ||||||||||||||||||||
Commercial real estate | 75,850 | 5.44 | 30.69 | 72,948 | 4.51 | 32.78 | 24,632 | 1.28 | 37.54 | |||||||||||||||||||||||||||
Small business | 8,133 | 2.49 | 7.20 | 4,576 | 1.44 | 6.43 | 4,495 | 1.58 | 5.57 | |||||||||||||||||||||||||||
Residential real estate | 6,034 | 0.31 | 42.56 | 4,177 | 0.19 | 43.82 | 4,242 | 0.20 | 42.33 | |||||||||||||||||||||||||||
Consumer — direct | 32,382 | 4.35 | 16.40 | 9,651 | 1.37 | 14.32 | 7,874 | 1.34 | 11.49 | |||||||||||||||||||||||||||
Discontinued loan products | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total assigned | 125,572 | 94,020 | 43,602 | |||||||||||||||||||||||||||||||||
Unassigned | — | N/A | N/A | — | N/A | N/A | — | N/A | N/A | |||||||||||||||||||||||||||
$ | 125,572 | 2.76 | 100.00 | 94,020 | 1.90 | 100.00 | 43,602 | 0.85 | 100.00 | |||||||||||||||||||||||||||
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December 31, 2005 | December 31, 2004 | |||||||||||||||||||||||
All | Loans | All | Loans | |||||||||||||||||||||
to Gross | by | to Gross | by | |||||||||||||||||||||
All | Loans | Category | All | Loans | Category | |||||||||||||||||||
by | in Each | to Gross | by | in Each | to Gross | |||||||||||||||||||
Category | Category | Loans | Category | Category | Loans | |||||||||||||||||||
Commercial business | $ | 1,988 | 2.30 | % | 1.63 | % | 2,507 | 2.94 | % | 1.59 | % | |||||||||||||
Commercial real estate | 17,984 | 0.75 | 45.20 | 23,345 | 0.92 | 47.28 | ||||||||||||||||||
Small business | 2,640 | 1.12 | 4.43 | 2,403 | 1.26 | 3.55 | ||||||||||||||||||
Residential real estate | 2,592 | 0.13 | 38.53 | 2,565 | 0.12 | 38.57 | ||||||||||||||||||
Consumer — direct | 6,354 | 1.17 | 10.19 | 4,281 | 0.90 | 8.86 | ||||||||||||||||||
Discontinued loan products | 156 | 12.92 | 0.02 | 1,431 | 17.27 | 0.15 | ||||||||||||||||||
Total assigned | 31,714 | 36,532 | ||||||||||||||||||||||
Unassigned | 9,478 | N/A | N/A | 9,478 | N/A | N/A | ||||||||||||||||||
$ | 41,192 | 0.78 | 100.00 | 46,010 | 0.86 | 100.00 | ||||||||||||||||||
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December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||
Tax certificates | $ | 1,441 | 2,094 | 632 | 388 | 381 | ||||||||||||||
Residential | 34,734 | 8,678 | 2,629 | 5,981 | 5,538 | |||||||||||||||
Commercial(2)(3) | 161,947 | 165,818 | — | 340 | 1,067 | |||||||||||||||
Small business | 4,644 | 877 | 244 | 9 | 88 | |||||||||||||||
Consumer | 6,763 | 3,218 | 1,563 | 471 | 1,210 | |||||||||||||||
Total non-accrual assets | 209,529 | 180,685 | 5,068 | 7,189 | 8,284 | |||||||||||||||
Residential real estate owned | 2,285 | 413 | 617 | 86 | 309 | |||||||||||||||
Commercial real estate owned | 16,500 | 16,763 | 21,130 | 881 | 383 | |||||||||||||||
Small business real estate owned | 260 | — | — | — | — | |||||||||||||||
Consumer | — | 40 | — | — | — | |||||||||||||||
Total repossessed assets | 19,045 | 17,216 | 21,747 | 967 | 692 | |||||||||||||||
Total nonperforming assets | $ | 228,574 | 197,901 | 26,815 | 8,156 | 8,976 | ||||||||||||||
Total nonperforming assets as a percentage of: | ||||||||||||||||||||
Total assets | 4.00 | 3.21 | 0.43 | 0.13 | 0.15 | % | ||||||||||||||
Loans, tax certificates and real estate owned | 4.95 | 4.10 | 0.55 | 0.17 | 0.19 | % | ||||||||||||||
TOTAL ASSETS | $ | 5,713,690 | 6,161,962 | 6,187,122 | 6,109,330 | 6,044,988 | ||||||||||||||
TOTAL LOANS, TAX CERTIFICATES AND NET REAL ESTATE OWNED | $ | 4,614,892 | 4,823,825 | 4,903,961 | 4,830,268 | 4,771,682 | ||||||||||||||
Allowance for loan losses | $ | 125,572 | 94,020 | 43,602 | 41,192 | 46,010 | ||||||||||||||
Tax certificates | $ | 213,534 | 188,401 | 199,090 | 166,697 | 170,028 | ||||||||||||||
Allowance for tax certificate losses | $ | 6,064 | 3,289 | 3,699 | 3,271 | 3,297 | ||||||||||||||
OTHER POTENTIAL PROBLEM LOANS | ||||||||||||||||||||
Contractually past due 90 days or more(1) | $ | 15,721 | — | — | — | — | ||||||||||||||
Performing impaired loans | — | — | 163 | 193 | 320 | |||||||||||||||
Restructured loans | 25,843 | 2,488 | — | 77 | 24 | |||||||||||||||
TOTAL POTENTIAL PROBLEM LOANS | $ | 41,564 | 2,488 | 163 | 270 | 344 | ||||||||||||||
(1) | The majority of these loans have matured and the borrower continues to make payments under the matured loan agreement. | |
(2) | $121.9 million of impaired loans had specific reserves of $29.2 million and no additional specific reserves were determined to be required on the remaining impaired loans. | |
(3) | Excluded from the above table as of December 31, 2008 were $79.3 million of residential commercial loans that were transferred to a work-out subsidiary of the Parent Company in March 2008. |
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For the Years Ended | Change | Change | ||||||||||||||||||
December 31, | 2008 vs | 2007 vs | ||||||||||||||||||
2008 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||
Service charges on deposits | $ | 93,905 | 102,639 | 90,472 | (8,734 | ) | 12,167 | |||||||||||||
Other service charges and fees | 28,959 | 28,950 | 27,542 | 9 | 1,408 | |||||||||||||||
Securities activities, net | 2,395 | 2,307 | 657 | 88 | 1,650 | |||||||||||||||
Income from unconsolidated subsidiaries | 1,509 | 1,219 | 33 | 290 | 1,186 | |||||||||||||||
Gains associated with debt redemption | — | — | 1,528 | — | (1,528 | ) | ||||||||||||||
(Losses) gains on dispositions of office properties and equipment, net | (213 | ) | (1,121 | ) | 1,627 | 908 | (2,748 | ) | ||||||||||||
Gains on sales of loans | 265 | 494 | 680 | (229 | ) | (186 | ) | |||||||||||||
Other | 10,488 | 9,924 | 9,305 | 564 | 619 | |||||||||||||||
Non-interest income | $ | 137,308 | 144,412 | 131,844 | (7,104 | ) | 12,568 | |||||||||||||
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Change | Change | |||||||||||||||||||
For the Years Ended December 31, | 2008 vs | 2007 vs | ||||||||||||||||||
2008 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||
Employee compensation and benefits | $ | 125,851 | 148,758 | 146,099 | (22,907 | ) | 2,659 | |||||||||||||
Occupancy and equipment | 64,774 | 65,840 | 57,291 | (1,066 | ) | 8,549 | ||||||||||||||
Advertising and promotion | 16,056 | 19,684 | 34,659 | (3,628 | ) | (14,975 | ) | |||||||||||||
Check losses | 8,767 | 11,476 | 8,615 | (2,709 | ) | 2,861 | ||||||||||||||
Professional fees | 10,979 | 8,266 | 7,653 | 2,713 | 613 | |||||||||||||||
Supplies and postage | 4,580 | 6,078 | 6,833 | (1,498 | ) | (755 | ) | |||||||||||||
Telecommunication | 4,430 | 5,552 | 4,774 | (1,122 | ) | 778 | ||||||||||||||
Amortization of intangible assets | 1,359 | 1,437 | 1,561 | (78 | ) | (124 | ) | |||||||||||||
Cost associated with debt redemption | 1,238 | — | 1,457 | 1,238 | (1,457 | ) | ||||||||||||||
Provision for tax certificates | 7,286 | 300 | 300 | 6,986 | — | |||||||||||||||
Restructuring charges, impairments and exit activities | 7,395 | 8,351 | — | (956 | ) | 8,351 | ||||||||||||||
Impairment of real estate held for sale | 1,169 | 5,240 | — | (4,071 | ) | 5,240 | ||||||||||||||
Impairment of real estate owned | 1,465 | 7,299 | 9 | (5,834 | ) | 7,290 | ||||||||||||||
Impairment of goodwill | 48,284 | — | — | 48,284 | — | |||||||||||||||
Other | 26,990 | 25,617 | 24,197 | 1,373 | 1,420 | |||||||||||||||
Total non-interest expense | $ | 330,623 | 313,898 | 293,448 | 16,725 | 20,450 | ||||||||||||||
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Change | Change | |||||||||||||||||||
For the Years Ended December 31, | 2008 vs | 2007 vs | ||||||||||||||||||
2008 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
(Loss) income before income taxes | $ | (135,050 | ) | (40,818 | ) | 49,427 | (94,232 | ) | (90,245 | ) | ||||||||||
(Provision) benefit for income taxes | (31,094 | ) | 21,378 | (13,105 | ) | (52,472 | ) | 34,483 | ||||||||||||
BankAtlantic net (loss) income | $ | (166,144 | ) | (19,440 | ) | 36,322 | (146,704 | ) | (55,762 | ) | ||||||||||
Effective tax rate | (23.02 | )% | 52.37 | % | 26.51 | % | ||||||||||||||
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Change | Change | |||||||||||||||||||
For the Years Ended December 31, | 2008 vs | 2007 vs | ||||||||||||||||||
2008 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||
Net interest income (expense): | ||||||||||||||||||||
Interest income on loans | $ | 261 | — | — | 261 | — | ||||||||||||||
Interest and dividend income on investments | 1,184 | 2,320 | 2,448 | (1,136 | ) | (128 | ) | |||||||||||||
Interest expense on Junior subordinated debentures | (21,262 | ) | (23,054 | ) | (21,933 | ) | 1,792 | (1,121 | ) | |||||||||||
Net interest (expense) | (19,817 | ) | (20,734 | ) | (19,485 | ) | 917 | (1,249 | ) | |||||||||||
Provision for loan losses | (24,418 | ) | — | — | (24,418 | ) | — | |||||||||||||
Net interest (expense) after provision | (44,235 | ) | (20,734 | ) | (19,485 | ) | (23,501 | ) | (1,249 | ) | ||||||||||
Non-interest income: | ||||||||||||||||||||
Income from unconsolidated subsidiaries | 600 | 1,281 | 1,634 | (681 | ) | (353 | ) | |||||||||||||
Securities activities, net | (356 | ) | 6,105 | 9,156 | (6,461 | ) | (3,051 | ) | ||||||||||||
Other income | 1,027 | 824 | 23 | 203 | 801 | |||||||||||||||
Non-interest income | 1,271 | 8,210 | 10,813 | (6,939 | ) | (2,603 | ) | |||||||||||||
Non-interest expense: | ||||||||||||||||||||
Employee compensation and benefits | 3,046 | 2,421 | 4,705 | 625 | (2,284 | ) | ||||||||||||||
Advertising and promotion | 279 | 317 | 408 | (38 | ) | (91 | ) | |||||||||||||
Professional fees | 1,782 | 424 | 638 | 1,358 | (214 | ) | ||||||||||||||
Other | 3,634 | 1,080 | 1,028 | 2,554 | 52 | |||||||||||||||
Non-interest expense | 8,741 | 4,242 | 6,779 | 4,499 | (2,537 | ) | ||||||||||||||
Loss before income taxes | (51,705 | ) | (16,766 | ) | (15,451 | ) | (34,939 | ) | (1,315 | ) | ||||||||||
(Provision) benefit for income taxes | (1,395 | ) | 6,194 | 6,008 | (7,589 | ) | 186 | |||||||||||||
Parent Company loss | $ | (53,100 | ) | (10,572 | ) | (9,443 | ) | (42,528 | ) | (1,129 | ) | |||||||||
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Amount | ||||
(In thousands) | ||||
Nonaccrual loans: | ||||
Commercial residential real estate: | ||||
Builder land loans | $ | 32,039 | ||
Land acquisition and development | 19,809 | |||
Land acquisition, development and construction | 34,915 | |||
Total commercial residential real estate | 86,763 | |||
Commercial non-residential real estate | 14,731 | |||
Total non-accrual loans | 101,494 | |||
Allowance for loan losses — specific reserves | (6,440 | ) | ||
Non-accrual loans, net | $ | 95,054 | ||
December 31, | ||||
2008 | ||||
(In thousands) | ||||
Nonaccrual loans: | ||||
Commercial residential real estate: | ||||
Builder land loans | $ | 22,019 | ||
Land acquisition and development | 16,759 | |||
Land acquisition, development and construction | 29,163 | |||
Total commercial residential real estate | 67,941 | |||
Commercial non-residential real estate | 11,386 | |||
Total non-accrual loans | 79,327 | |||
Allowance for loan losses — specific reserves | (11,685 | ) | ||
Non-accrual loans, net | $ | 67,642 | ||
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• | Increase in cash and cash equivalents primarily reflecting $107.3 million of higher cash balances at the Federal Reserve Bank associated with daily cash management activities; |
• | Decrease in securities available for sale reflecting the sale of $190.6 million of mortgage-backed securities as well as repayments associated with higher residential mortgage refinancings in response to low historical residential mortgage interest rates during the period; |
• | Decrease in tax certificate balances primarily due to redemptions and decreased tax certificate acquisitions compared to prior periods; | |
• | Decline in FHLB stock related to lower FHLB advance borrowings; |
• | Higher residential loans held for sale primarily resulting from increased originations associated with residential mortgage refinancings; |
• | Decrease in loan receivable balances associated with repayments of residential loans in the normal course of business combined with a significant decline in loan purchases and originations; |
• | Decrease in accrued interest receivable primarily resulting from lower loan balances and a significant decline in interest rates; |
• | Increase in real estate owned associated with commercial real estate and residential loan foreclosures; and |
• | Decrease in goodwill associated with the impairment of $9.1 million of goodwill. |
• | Increased interest bearing deposit account balances associated with sales efforts and promotions of higher-yielding interest-bearing checking accounts partially offset by lower time deposits; |
• | Higher non-interest-bearing deposit balances primarily due to increased customer balances in checking accounts; |
• | Lower FHLB advances and short term borrowings due to repayments using proceeds from the sales of securities, loan repayments and increases in deposit account balances; and |
• | Increase in junior subordinated debentures due to interest deferrals. |
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• | Higher cash and due from depository institution balances resulting from additional cash at automated teller machines and cash on hand; | |
• | Increase in federal funds sold and short term investments associated with daily treasury management; | |
• | Decrease in securities available for sale and financial instruments reflecting the sale of Stifel common stock, the sale of Stifel warrants, the liquidation of managed fund equity investments held by the Parent Company and principal repayments on agency securities; | |
• | Decrease in investment securities at cost primarily resulting from the sale of Stifel common stock and certain private equity securities; | |
• | Increase in tax certificate balances primarily due to higher Florida tax certificate acquisitions; | |
• | Decline in FHLB stock related to lower FHLB advance borrowings; | |
• | Decrease in loan receivable balances associated with a $43.2 million increase in the allowance for loan losses as well as lower residential loan balances partially offset by higher small business, commercial business and home equity loan balances; | |
• | Lower real estate held for development and sale balances associated with impairments and the sale of inventory of homes at a real estate development; | |
• | Decrease in office properties and equipment primarily due to the sale of five central Florida stores to an unrelated financial institution as well as the disposal of properties in connection with the on-going consolidation of back-office facilities; | |
• | Decrease in deferred tax asset, net due to the establishment of a deferred tax asset valuation allowance; | |
• | Decrease in goodwill associated with the recognition of a $48.3 million goodwill impairment; and | |
• | Decline in other assets reflecting the receipt of income tax refunds associated with the carry-back of taxable losses for the year ended December 31, 2007. |
• | Lower non-interest-bearing deposit balances primarily reflecting the migration of non-interest bearing deposits to interest-bearing NOW accounts as BankAtlantic promoted higher interest rate NOW accounts during 2008 in response to greater competition; | |
• | Decline in insured savings and money market accounts primarily reflecting deposit outflows resulting from interest rate reductions on high yield account products as high rates from prior period promotions were discontinued; | |
• | Increase in certificate accounts reflecting higher brokered deposit balances as well as a higher interest rate certificate account promotion during 2008; | |
• | Lower FHLB advance borrowings due to a decline in total assets and the availability of alternative funding sources at lower interest rates; | |
• | Higher short-term borrowings associated with funds obtained from the Treasury at lower interest rates than alternate funding sources; and | |
• | Decrease in other liabilities primarily resulting from a decline in accrued interest payable on borrowings associated with significantly lower interest rates at period end. |
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As of June 30, 2009 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Carrying | Unrealized | Unrealized | Estimated | |||||||||||||
Value | Appreciation | Depreciation | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 16,122 | — | — | 16,122 | |||||||||||
Securities available for sale | 219 | — | 5 | 214 | ||||||||||||
Private investment securities | 2,036 | 979 | — | 3,015 | ||||||||||||
Total | $ | 18,377 | 979 | 5 | 19,351 | |||||||||||
As of December 31, 2008 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Carrying | Unrealized | Unrealized | Estimated | |||||||||||||
Value | Appreciation | Depreciation | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 37,116 | — | — | 37,116 | |||||||||||
Equity securities | 1,597 | — | — | 1,597 | ||||||||||||
Private investment securities | 2,036 | 467 | — | 2,503 | ||||||||||||
Total | $ | 40,749 | 467 | — | 41,216 | |||||||||||
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As of | ||||||||||||||||||||||||||||
December 31, | For the Period Ending December 31,(1) | |||||||||||||||||||||||||||
2008 | 2009 | 2010-2011 | 2012-2016 | 2017-2021 | 2022-2026 | >2027 | ||||||||||||||||||||||
Commercial real estate | $ | 1,449,620 | 665,220 | 309,179 | 316,651 | 94,982 | 60,879 | 2,709 | ||||||||||||||||||||
Residential real estate | 1,933,077 | 40,286 | 5,861 | 30,506 | 265,104 | 81,892 | 1,509,428 | |||||||||||||||||||||
Consumer and home equity | 745,086 | 1,384 | 5,861 | 297,845 | 370,009 | 69,987 | — | |||||||||||||||||||||
Commercial business | 251,248 | 120,903 | 43,983 | 81,387 | 4,428 | 547 | — | |||||||||||||||||||||
Total loans | $ | 4,379,031 | 827,793 | 364,884 | 726,389 | 734,523 | 213,305 | 1,512,137 | ||||||||||||||||||||
Total securities available for sale(1) | $ | 699,474 | — | 277 | 330 | 36,850 | 128,162 | 533,855 | ||||||||||||||||||||
(1) | Does not include $2.4 million of equity securities. |
Commercial | Real Estate | |||||||||||
Business | Construction | Total | ||||||||||
One year or less | $ | 215,440 | 291,441 | 506,881 | ||||||||
Over one year, but less than five years | 31,909 | 9,084 | 40,993 | |||||||||
Over five years | 3,899 | — | 3,899 | |||||||||
$ | 251,248 | 300,525 | 551,773 | |||||||||
Due After One Year: | ||||||||||||
Pre-determined interest rate | $ | 35,808 | 9,084 | 44,892 | ||||||||
Floating or adjustable interest rate | — | — | — | |||||||||
$ | 35,808 | 9,084 | 44,892 | |||||||||
Florida | 60 | % | ||
Eastern U.S.A. | 21 | % | ||
Western U.S.A. | 15 | % | ||
Central U.S.A. | 4 | % | ||
100 | % | |||
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Minimum Ratios | ||||||||||||||||
Adequately | Well | |||||||||||||||
Actual | Capitalized | Capitalized | ||||||||||||||
Amount | Ratio | Ratio | Ratio | |||||||||||||
At June 30, 2009: | ||||||||||||||||
Total risk-based capital | $ | 429,333 | 11.81 | % | 8.00 | % | 10.00 | % | ||||||||
Tier 1 risk-based capital | 360,943 | 9.93 | 4.00 | 6.00 | ||||||||||||
Tangible capital | 360,943 | 7.01 | 1.50 | 1.50 | ||||||||||||
Core capital | 360,943 | 7.01 | 4.00 | 5.00 | ||||||||||||
At December 31, 2008: | ||||||||||||||||
Total risk-based capital | $ | 456,776 | 11.63 | % | 8.00 | % | 10.00 | % | ||||||||
Tier 1 risk-based capital | 385,006 | 9.85 | 4.00 | 6.00 | ||||||||||||
Tangible capital | 385,006 | 6.94 | 1.50 | 1.50 | ||||||||||||
Core capital | 385,006 | 6.94 | 4.00 | 5.00 | ||||||||||||
At December 31, 2007: | ||||||||||||||||
Total risk-based capital | $ | 495,668 | 11.63 | % | 8.00 | % | 10.00 | % | ||||||||
Tier 1 risk-based capital | 420,063 | 9.85 | 4.00 | 6.00 | ||||||||||||
Tangible capital | 420,063 | 6.94 | 1.50 | 1.50 | ||||||||||||
Core capital | 420,063 | 6.94 | 4.00 | 5.00 |
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | 75,447 | 40,928 | 3,359 | ||||||||
Investing activities | 281,186 | (22,066 | ) | (205,891 | ) | |||||||
Financing activities | (322,250 | ) | (30,183 | ) | 174,460 | |||||||
Increase (decrease) in cash and cash equivalents | $ | 34,383 | (11,321 | ) | (28,072 | ) | ||||||
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Payments Due by Period(2) | ||||||||||||||||||||
Less than | After 5 | |||||||||||||||||||
Contractual Obligations | Total | 1 year | 1-3 years | 4-5 years | years | |||||||||||||||
Time deposits | $ | 1,230,829 | 1,160,960 | 56,398 | 13,471 | — | ||||||||||||||
Long-term debt | 324,134 | — | 22,000 | 7,939 | 294,195 | |||||||||||||||
Advances from FHLB(1) | 597,020 | 505,020 | 92,000 | — | — | |||||||||||||||
Operating lease obligations held for sublease | 30,203 | 1,282 | 3,616 | 2,421 | 22,884 | |||||||||||||||
Operating lease obligations held for use | 72,582 | 7,686 | 17,872 | 7,790 | 39,234 | |||||||||||||||
Pension obligation | 17,340 | 1,269 | 2,995 | 3,229 | 9,847 | |||||||||||||||
Other obligations | 12,800 | — | 4,800 | 6,400 | 1,600 | |||||||||||||||
Total contractual cash obligations | $ | 2,284,908 | 1,676,217 | 199,681 | 41,250 | 367,760 | ||||||||||||||
(1) | Payments due by period are based on contractual maturities |
(2) | The above table excludes interest payments on interest bearing liabilities |
Amount of Commitment Expiration per Period | ||||||||||||||||||||
Total | ||||||||||||||||||||
Amounts | Less Than | After 5 | ||||||||||||||||||
Commercial Commitments | Committed | 1 Year | 1-3 Years | 4-5 Years | Years | |||||||||||||||
Lines of credit | $ | 501,431 | 70,642 | — | — | 430,789 | ||||||||||||||
Standby letters of credit | 20,558 | 20,558 | — | — | — | |||||||||||||||
Other commercial commitments | 41,368 | 41,368 | — | — | — | |||||||||||||||
Total commercial commitments | $ | 563,357 | 132,568 | — | — | 430,789 | ||||||||||||||
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Payments Due by Period(2) | ||||||||||||||||||||
Less Than | After 5 | |||||||||||||||||||
Contractual Obligations | Total | 1 Year | 1-3 Years | 4-5 Years | Years | |||||||||||||||
Time deposits | $ | 1,338,176 | 1,229,144 | 65,640 | 43,377 | 15 | ||||||||||||||
Long-term debt | 317,059 | — | 22,000 | 864 | 294,195 | |||||||||||||||
Advances from FHLB(1) | 967,028 | 565,000 | 402,028 | — | — | |||||||||||||||
Operating lease obligations held for sublease | 30,729 | 1,241 | 3,657 | 2,403 | 23,428 | |||||||||||||||
Operating lease obligations held for use | 74,369 | 7,983 | 11,635 | 9,562 | 45,189 | |||||||||||||||
Pension obligation | 17,340 | 1,269 | 2,995 | 3,229 | 9,847 | |||||||||||||||
Other obligations | 20,056 | 2,956 | 5,900 | 6,400 | 4,800 | |||||||||||||||
Total contractual cash obligations | $ | 2,764,757 | 1,807,593 | 513,855 | 65,835 | 377,474 | ||||||||||||||
(1) | Payments due by period are based on contractual maturities | |
(2) | The above table excludes interest payments on interest bearing liabilities |
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• | recent data observed in the market, including similar assets, | |
• | cash flow modeling based on projected cash flows and market discount rates, and | |
• | estimated fair value of the underlying loan collateral. |
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Non- | Third | |||||||||||||||||||||||||||||
Date | Acres | Closed | Current | Saleable | Saleable | Acres | Acres | |||||||||||||||||||||||
Acquired | Acquired | Acres(a) | Inventory | Acres(b) | Acres(b) | Backlog | Available | |||||||||||||||||||||||
Currently in Development | ||||||||||||||||||||||||||||||
Tradition, Florida | 1998 — 2004 | 8,246 | 1,831 | 6,415 | 2,583 | 3,832 | — | 3,832 | ||||||||||||||||||||||
Tradition Hilton Head | 2005 | 5,390 | 166 | 5,224 | 2,417 | 2,807 | 10 | 2,797 | ||||||||||||||||||||||
Total Currently in Development | 13,636 | 1,997 | 11,639 | 5,000 | 6,639 | 10 | 6,629 | |||||||||||||||||||||||
(a) | Closed acres for Tradition Hilton Head include 150 acres owned by Carolina Oak, a wholly owned subsidiary of Woodbridge. The revenue from this sale was eliminated in consolidation. |
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(b) | Actual saleable and non-saleable acres may vary over time due to changes in zoning, project design, or other factors. Non-saleable acres include, but are not limited to, areas set aside for roads, parks, schools, utilities, wetlands and other public purposes. |
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Symbol | 1/2/04 | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | |||||||||||||||||||||||||||
Woodbridge Class A common stock | WDGH.PK | 100.00 | 152.48 | 113.60 | 61.31 | 11.04 | 0.60 | ||||||||||||||||||||||||||
Dow Jones US Total Home Construction Index | DJUSHB | 100.00 | 140.43 | 161.22 | 127.99 | 56.58 | 38.48 | ||||||||||||||||||||||||||
Russell 2000 Index | RTY | 100.00 | 116.18 | 120.04 | 140.44 | 136.58 | 89.05 | ||||||||||||||||||||||||||
Number of Securities to be | Weighted Average | |||||||||||
Issued Upon Exercise of | Exercise Price of | Number of Securities | ||||||||||
Outstanding Options, | Outstanding Options, | Remaining Available | ||||||||||
Plan Category | Warrants or Rights | Warrants and Rights | for Future Issuance | |||||||||
Equity compensation plans approved by security holders | 318,471 | $ | 78.89 | 281,529 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 318,471 | $ | 78.89 | 281,529 | ||||||||
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Fair Market | ||||||||||||||||||||||||||||||||
Value at | ||||||||||||||||||||||||||||||||
Payments Due by Year | December 31, | |||||||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | 2008 | |||||||||||||||||||||||||
Fixed rate debt: | ||||||||||||||||||||||||||||||||
Notes and mortgage payable(a) | 723 | 561 | 573 | 504 | 499 | 99,332 | 102,192 | 28,384 | ||||||||||||||||||||||||
Average interest rate | 8.09 | % | 8.11 | % | 8.12 | % | 8.13 | % | 8.14 | % | 8.15 | % | 8.12 | % | ||||||||||||||||||
Variable rate debt: | ||||||||||||||||||||||||||||||||
Notes and mortgage payable(a) | 2,797 | 8,102 | 187,895 | 25,751 | 707 | 19,217 | 244,469 | 227,145 | ||||||||||||||||||||||||
Average interest rate | 4.04 | % | 4.04 | % | 4.07 | % | 5.39 | % | 5.86 | % | 5.86 | % | 4.22 | % | ||||||||||||||||||
Total debt obligations | 3,520 | 8,663 | 188,468 | 26,255 | 1,206 | 118,549 | 346,661 | 255,529 |
(a) | Fair value calculated using current estimated borrowing rates. |
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• | forward the letter to the director or directors to whom it is addressed; | |
• | attempt to handle the inquiry directly if it relates to routine or ministerial matters, including requests for information; or | |
• | not forward the letter if it is primarily commercial in nature or if it is determined to relate to an improper or irrelevant topic. |
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ALAN B. LEVAN | Director since 1987 |
JAMES BLOSSER | Director since 2001 |
DARWIN DORNBUSH | Director since 2003 |
S. LAWRENCE KAHN, III | Director since 2003 |
JOEL LEVY | Director since 2003 |
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WILLIAM SCHERER | Director since 2001 |
JOHN E. ABDO | Director since 1985 |
WILLIAM NICHOLSON | Director since 2003 |
ALAN J. LEVY | Director since 2005 |
Name | Position | |
Alan B. Levan | Chairman and Chief Executive Officer | |
John E. Abdo | Vice Chairman | |
Seth M. Wise | President | |
John K. Grelle | Executive Vice President and Chief Financial Officer |
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Alan B. Levan | $ | 500,000 | ||
John E. Abdo | $ | 500,000 | ||
Seth M. Wise | $ | 210,000 | ||
John K. Grelle | $ | 54,880 |
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Change in | ||||||||||||||||||||||||||||||||||||
Pension Value | ||||||||||||||||||||||||||||||||||||
and Nonqualified | ||||||||||||||||||||||||||||||||||||
Non-Equity | Deferred | |||||||||||||||||||||||||||||||||||
Stock | Option | Incentive Plan | Compensation | All Other | ||||||||||||||||||||||||||||||||
Name and Principal Position | Year | Salary | Bonus(1) | Awards | Awards(2) | Compensation | Earnings | Compensation(3) | Total | |||||||||||||||||||||||||||
Alan B. Levan, | 2008 | $ | 151,218 | $ | 500,000 | $ | — | $ | 401,449 | $ | — | $ | — | $ | 1,500 | $ | 1,054,167 | |||||||||||||||||||
Chief Executive Officer(4) | 2007 | 400,400 | 6,708 | — | 372,409 | — | — | 1,500 | 781,017 | |||||||||||||||||||||||||||
2006 | 515,833 | 6,769 | — | 230,828 | — | — | — | 753,430 | ||||||||||||||||||||||||||||
John E. Abdo, | 2008 | 151,218 | 500,000 | — | 534,538 | — | — | 307,740 | 1,493,496 | |||||||||||||||||||||||||||
Vice Chairman(4) | 2007 | 487,988 | 8,175 | — | 505,193 | — | — | 303,181 | 1,304,537 | |||||||||||||||||||||||||||
2006 | 628,672 | 9,582 | — | 333,573 | — | — | 291,244 | 1,263,071 | ||||||||||||||||||||||||||||
Seth M. Wise, | 2008 | 350,004 | 210,000 | — | 205,809 | — | — | 7,200 | 773,013 | |||||||||||||||||||||||||||
President(5) | 2007 | 323,343 | 4,108 | — | 188,945 | — | — | 16,200 | 532,596 | |||||||||||||||||||||||||||
2006 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
John K. Grelle, | 2008 | 145,191 | 54,880 | — | — | — | — | — | 200,071 | |||||||||||||||||||||||||||
Executive Vice President and | 2007 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Chief Financial Officer(6) | 2006 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Patrick M. Worsham, | 2008 | 133,269 | — | — | — | — | — | — | 133,269 | |||||||||||||||||||||||||||
Former Acting Chief | 2007 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Financial Officer(7) | 2006 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
George P. Scanlon, | 2008 | — | — | — | — | — | — | 169,726 | 169,726 | |||||||||||||||||||||||||||
Former Executive Vice President | 2007 | 202,750 | 2,465 | — | 203,367 | — | — | 9,875 | 418,457 | |||||||||||||||||||||||||||
and Chief Financial Officer(8) | 2006 | 283,708 | 104,384 | — | 130,781 | — | — | 8,800 | 527,673 |
(1) | The amounts for 2008 represent discretionary cash bonuses paid to or accrued on behalf of the Woodbridge Named Executive Officers under Woodbridge’s 2008 annual incentive program based on a subjective evaluation of their overall performance in areas outside those that can be objectively measured from financial results. Woodbridge’s 2008 annual incentive program is more fully described in the “Compensation Discussion and Analysis” section above. | |
(2) | All options are to purchase shares of Woodbridge’s Class A Common Stock. The amounts for 2008 represent the dollar amounts recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), without taking into account an estimate of forfeitures related to service-based vesting of stock option grants, including amounts from awards granted prior to 2008. Assumptions used in the calculation of these amounts are included in footnote 6 to the Woodbridge’s audited consolidated financial statements for the fiscal year ended December 31, 2008 included elsewhere in this joint proxy statement/prospectus. In connection with Mr. Scanlon’s resignation as Woodbridge’s Executive Vice President and Chief Financial Officer, effective January 11, 2008, Mr. Scanlon forfeited all of his unvested stock options pursuant to which he had the right to purchase an aggregate of 110,000 shares of Woodbridge’s Class A Common Stock. Woodbridge did not grant any stock options to the Woodbridge Named Executive Officers during 2008. | |
(3) | The amounts for 2008 are comprised of the following. Each of Messrs. Levan and Abdo received $1,500 as reimbursement for insurance premiums for waiving participation in Woodbridge’s medical, dental and vision plans. In addition, the amount for Mr. Abdo includes management fees of $306,240 paid by Woodbridge to Abdo Companies, Inc., of which Mr. Abdo is the principal shareholder and Chief Executive Officer. Mr. Wise received an automobile allowance in the amount of $7,200. As described below under “Potential Payments upon Termination or Change-in Control,” in connection with his resignation as Woodbridge’s Executive Vice President and Chief Financial Officer, effective January 11, 2008, Woodbridge and Mr. Scanlon entered into an agreement pursuant to which Woodbridge paid an aggregate of $169,726 and |
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provided certain benefits to Mr. Scanlon during 2008 in consideration for Mr. Scanlon’s provision of certain services to Woodbridge during the year. | ||
(4) | During 2008, each of Messrs. Levan and Abdo received options to acquire 50,000 shares of Bluegreen’s common stock at an exercise price of $9.31 per share, which options are scheduled to vest on May 21, 2013 and expire on May 21, 2018. Each of Messrs. Levan and Abdo were also granted during 2008 71,000 shares of restricted common stock of Bluegreen and options to purchase an additional 71,000 shares of Bluegreen’s common stock at an exercise price of $7.50 per share. These additional options and restricted shares are scheduled to vest on May 21, 2013 (and the options are scheduled to expire on May 21, 2015); however, in the event of achange-in-control of Bluegreen at a price of at least $12.50 per share of common stock, a percentage (of up to 100%) of the options and restricted shares will vest depending on both the timing of thechange-in-control and the actual price for a share of Bluegreen’s common stock in the transaction which results in thechange-in-control. The aggregate grant date fair value of the options granted by Bluegreen to each of Messrs. Levan and Abdo during 2008 computed in accordance with FAS 123(R) was $370,700. The grant date fair value of the restricted stock awards granted by Bluegreen to each of Messrs. Levan and Abdo during 2008 computed in accordance with FAS 123(R) was $495,580. | |
(5) | Mr. Wise was not a named executive officer of Woodbridge during 2006. | |
(6) | Mr. Grelle was appointed Executive Vice President and Chief Financial Officer of Woodbridge on May 20, 2008. Prior to that time, Mr. Grelle was not employed by Woodbridge. | |
(7) | Mr. Worsham served as acting Chief Financial Officer of Woodbridge from January 11, 2008 through May 19, 2008. Other than with respect to that period of time, Mr. Worsham has not been employed by Woodbridge. | |
(8) | Mr. Scanlon resigned as Executive Vice President and Chief Financial Officer of Woodbridge, effective January 11, 2008. |
All Other | All Other | |||||||||||||||||||||||||||||||
Stock | Option | Grant Date | ||||||||||||||||||||||||||||||
Awards: | Awards: | Exercise or | Fair Value | |||||||||||||||||||||||||||||
Estimated Possible Payouts | Number of | Number of | Base Price | of Stock | ||||||||||||||||||||||||||||
Under Non-Equity Incentive | Shares of | Securities | of Option | and | ||||||||||||||||||||||||||||
Plan Awards(3) | Stock or | Underlying | Awards | Option | ||||||||||||||||||||||||||||
Name | Grant Date | Threshold | Target | Maximum | Units | Options | ($ / Sh) | Awards | ||||||||||||||||||||||||
Alan B. Levan | — | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | — | — | $ | — | $ | — | ||||||||||||||||
John E. Abdo | — | (1 | ) | (1 | ) | (1 | ) | — | — | — | — | |||||||||||||||||||||
Seth M. Wise(2) | — | N/A | N/A | N/A | — | — | — | — | ||||||||||||||||||||||||
John K. Grelle(2) | — | N/A | N/A | N/A | — | — | — | — | ||||||||||||||||||||||||
Patrick M. Worsham | — | N/A | N/A | N/A | — | — | — | — | ||||||||||||||||||||||||
George P. Scanlon | — | N/A | N/A | N/A | — | — | — | — |
(1) | During 2008, each of Messrs. Levan and Abdo was eligible to receive a cash bonus under the formula-based component of Woodbridge’s annual incentive program which related to the achievement of financial performance goals tied to Woodbridge’s consolidated gross revenues, subject to reduction in the sole discretion of the Compensation Committee. | |
(2) | No objective financial criteria were set under Woodbridge’s 2008 annual incentive program for Messrs. Wise and Grelle. | |
(3) | None of the Woodbridge Named Executive Officers received any payments under the formula-based component of Woodbridge’s 2008 annual incentive program. However, each of Messrs. Levan, Abdo, Wise and |
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Grelle received a discretionary bonus under Woodbridge’s 2008 annual incentive program based on a subjective evaluation of his overall performance in areas outside those that can be objectively measured from financial results. These discretionary bonuses are included in the “Bonus” column of the “Summary Compensation Table.” Woodbridge’s 2008 annual incentive program is more fully described in the “Compensation Discussion and Analysis” section above. |
Option Awards(1) | ||||||||||||||||||||
Equity | ||||||||||||||||||||
Incentive | ||||||||||||||||||||
Plan Awards: | ||||||||||||||||||||
Number of | Number of | Number of | ||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||
Underlying | Underlying | Underlying | ||||||||||||||||||
Unexercised | Unexercised | Unexercised | Option | Option | ||||||||||||||||
Options | Options | Unearned | Exercise | Expiration | ||||||||||||||||
Name | Exercisable | Unexercisable | Options | Price | Date | |||||||||||||||
Alan B. Levan | 12,000 | (2) | N/A | $ | 100.75 | 1/2/2014 | ||||||||||||||
8,000 | (3) | 160.65 | 7/22/2015 | |||||||||||||||||
12,000 | (4) | 65.30 | 7/24/2016 | |||||||||||||||||
12,000 | (5) | 45.80 | 6/18/2017 | |||||||||||||||||
John E. Abdo | 18,000 | (2) | N/A | 100.75 | 1/2/2014 | |||||||||||||||
12,000 | (3) | 160.65 | 7/22/2015 | |||||||||||||||||
12,000 | (4) | 65.30 | 7/24/2016 | |||||||||||||||||
12,000 | (5) | 45.80 | 6/18/2017 | |||||||||||||||||
Seth M. Wise | 6,000 | (2) | N/A | 100.75 | 1/2/2014 | |||||||||||||||
4,000 | (3) | 160.65 | 7/22/2015 | |||||||||||||||||
6,000 | (4) | 65.30 | 7/24/2016 | |||||||||||||||||
7,000 | (5) | 45.80 | 6/18/2017 | |||||||||||||||||
John K. Grelle | — | — | — | — | ||||||||||||||||
Patrick M. Worsham | — | — | — | — | ||||||||||||||||
George P. Scanlon | — | — | — | — |
(1) | All options are to purchase shares of Woodbridge’s Class A Common Stock. | |
(2) | These options vested on January 2, 2009, but they are included as unexercisable options because they were not exercisable as of December 31, 2008. As a result of their vesting on January 2, 2009, these options are currently exercisable. | |
(3) | Vests on July 22, 2010. | |
(4) | Vests on July 24, 2011. | |
(5) | Vests on June 18, 2012. |
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Change | ||||||||||||||||||||||||||||
in Pension | ||||||||||||||||||||||||||||
Value and | ||||||||||||||||||||||||||||
Nonqualified | ||||||||||||||||||||||||||||
Non-Equity | Deferred | |||||||||||||||||||||||||||
Fees Earned or | Stock | Option | Incentive Plan | Compensation | All Other | |||||||||||||||||||||||
Name | Paid in Cash | Awards(1)(3) | Awards(2)(3) | Compensation | Earnings | Compensation | Total | |||||||||||||||||||||
James Blosser | $ | 53,500 | $ | — | $ | 50,817 | $ | — | $ | — | $ | — | $ | 104,317 | ||||||||||||||
Darwin Dornbush | 49,708 | 50,000 | — | — | — | — | 99,708 | |||||||||||||||||||||
S. Lawrence Kahn, III | 63,500 | 35,000 | 15,246 | — | — | — | 113,746 | |||||||||||||||||||||
Alan J. Levy | 50,000 | 50,000 | — | — | — | — | 100,000 | |||||||||||||||||||||
Joel Levy | 65,004 | 25,000 | 25,410 | — | — | — | 115,414 | |||||||||||||||||||||
William R. Nicholson | 75,000 | — | 50,817 | — | — | — | 125,817 | |||||||||||||||||||||
William Scherer | 50,000 | 50,000 | — | — | — | — | 100,000 |
(1) | All restricted stock are shares of Woodbridge’s Class A Common Stock. The amount represents the dollar amount recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), without taking into account an estimate of forfeitures related to service-based vesting, of restricted stock grants, including amounts from awards granted prior to 2008. Assumptions used in the calculation of these amounts are included in footnote 6 to Woodbridge’s audited |
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financial statements for the fiscal year ended December 31, 2008 included elsewhere in this joint proxy statement/prospectus. There were no forfeitures during 2008. The grant date fair value of the restricted stock awards granted in 2008 computed in accordance with FAS 123(R) was $50,000 for each of Messrs. Dornbush, Alan J. Levy and Scherer, $35,000 for Mr. Kahn and $25,000 for Mr. Joel Levy. | ||
(2) | All options are to purchase shares of Woodbridge’s Class A Common Stock. The amount represents the dollar amount recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), without taking into account an estimate of forfeitures related to service-based vesting, of stock option grants, including amounts from awards granted prior to 2008. Assumptions used in the calculation of these amounts are included in footnote 6 to Woodbridge’s audited financial statements for the fiscal year ended December 31, 2008 included elsewhere in this joint proxy statement/prospectus. There were no forfeitures during 2008. The grant date fair value of the stock option awards computed in accordance with FAS 123(R) was $50,817 for each of Messrs. Blosser and Nicholson, $15,246 for Mr. Kahn and $25,410 for Mr. Joel Levy. | |
(3) | The table below sets forth the aggregate number of shares of restricted stock and the aggregate number of stock options held by each non-employee director as of December 31, 2008. All restricted stock awards are in shares of Woodbridge’s Class A Common Stock, and all stock options are options to purchase shares of Woodbridge’s Class A Common Stock. |
Name | Restricted Stock | Stock Options | ||||||
James Blosser | — | 19,176 | ||||||
Darwin Dornbush | 3,732 | 4,286 | ||||||
S. Lawrence Kahn, III | 2,612 | 7,827 | ||||||
Alan J. Levy | 3,732 | 2,762 | ||||||
Joel Levy | 1,866 | 11,435 | ||||||
William Nicholson | — | 18,834 | ||||||
William Scherer | 3,732 | 5,497 |
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Fiscal 2008 | Fiscal 2007 | |||||||
(In thousands) | ||||||||
Audit fees(1) | $ | 715 | $ | 1,197 | ||||
Audit-related fees | — | — | ||||||
Tax fees | — | — | ||||||
All other fees | — | — |
(1) | Includes fees for services related to Woodbridge’s annual financial statement audits, the 2008 and 2007 audits of the effectiveness of Woodbridge’s internal control over financial reporting and the review of quarterly financial statements filed in Woodbridge’s Quarterly Reports onForm 10-Q. The fiscal 2007 amount also includes fees relating to services performed by PwC with respect to Woodbridge’s 2007 rights offering, the amendments to Woodbridge’s Annual Report onForm 10-K/A for the year ended December 31, 2006 and Quarterly Report on Form10-Q/A for the quarter ended March 31, 2007 and the November 9, 2007 bankruptcy filing of Levitt and Sons and substantially all of its subsidiaries. |
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Amount and | ||||||||||
Nature of | ||||||||||
Beneficial | ||||||||||
Title of Class | Name and Address of Beneficial Owner | Ownership | Percent of Class | |||||||
Class A Common Stock | BFC Financial Corporation 2100 West Cypress Creek Road Fort Lauderdale, Florida 33309 | 3,735,391 | (1) | 23.6 | %(1) | |||||
Pennant Capital Management, LLC 40 Main Street Chatham, NY 07928 | 3,577,952 | (2) | 21.5 | % | ||||||
Class B Common Stock | BFC Financial Corporation 2100 West Cypress Creek Road Fort Lauderdale, Florida 33309 | 243,807 | (1) | 100 | % |
(1) | Woodbridge’s Class B Common Stock is convertible on ashare-for-share basis into Woodbridge’s Class A Common Stock at any time at BFC’s discretion. The 243,807 shares of Woodbridge’s Class B Common Stock held by BFC are not separately included in the Class A Common Stock ownership amount for BFC, but are included for the purposes of calculating the percent of Woodbridge’s Class A Common Stock beneficially owned by BFC. BFC may be deemed to be controlled by Alan B. Levan and John E. Abdo, who collectively may be deemed to have an aggregate beneficial ownership of shares of BFC’s Class A Common Stock and Class B Common Stock representing 74.2% of the total voting power of BFC. Mr. Levan |
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serves as Chairman and Chief Executive Officer of Woodbridge and Chairman, President and Chief Executive Officer of BFC. Mr. Abdo serves as Vice Chairman of each of Woodbridge and BFC. |
(2) | Pennant Capital Management, LLC and Alan Fournier have shared voting and shared dispositive power over all shares listed. |
Class A | Class B | Percent of | Percent of | |||||||||||||
Common Stock | Common Stock | Class A | Class B | |||||||||||||
Ownership | Ownership | Common Stock | Common Stock | |||||||||||||
BFC Financial Corporation(1) | 3,735,391 | 243,807 | 23.6 | % | 100 | % | ||||||||||
Alan B. Levan(1)(2)(3)(4) | 3,767,215 | 243,807 | 23.8 | % | 100 | % | ||||||||||
John E. Abdo(1)(2)(3)(4) | 3,761,316 | 243,807 | 23.7 | % | 100 | % | ||||||||||
Seth M. Wise(3)(4) | 7,043 | — | * | — | ||||||||||||
John K. Grelle | — | — | — | — | ||||||||||||
Patrick M. Worsham(5) | — | — | — | — | ||||||||||||
George P. Scanlon(5) | — | — | — | — | ||||||||||||
James J. Blosser(4) | 19,176 | — | * | — | ||||||||||||
Darwin C. Dornbush(4) | 14,433 | — | * | — | ||||||||||||
S. Lawrence Kahn, III(4) | 15,583 | — | * | — | ||||||||||||
Alan Levy(4) | 14,925 | — | * | — | ||||||||||||
Joel Levy(4) | 17,738 | — | * | — | ||||||||||||
William R. Nicholson(4) | 28,907 | — | * | — | ||||||||||||
William R. Scherer(4)(6) | 43,403 | — | * | — | ||||||||||||
All directors and executive officers of Woodbridge as of August 3, 2009 as a group (11 persons)(1)(7) | 3,954,348 | 243,807 | 24.8 | % | 100 | % |
* | Less than one percent of class. | |
(1) | Woodbridge’s Class B Common Stock is convertible on ashare-for-share basis into Woodbridge’s Class A Common Stock at any time at BFC’s discretion. BFC may be deemed to be controlled by Messrs. Levan and Abdo, who collectively may be deemed to have an aggregate beneficial ownership of shares of BFC’s Class A Common Stock and Class B Common Stock representing 74.2% of the total voting power of BFC. Mr. Levan serves as Chairman and Chief Executive Officer of Woodbridge and Chairman, President and Chief Executive Officer of BFC. Mr. Abdo serves as Vice Chairman of each of Woodbridge and BFC. The 243,807 shares of Woodbridge’s Class B Common Stock held by BFC are not separately included in the “Class A Common Stock Ownership” of BFC, Messrs. Levan and Abdo or Woodbridge’s directors and executive officers as a group, but are included for the purposes of calculating the percent of Woodbridge’s Class A Common Stock beneficially owned by each of BFC, Messrs. Levan and Abdo and Woodbridge’s directors and executive officers as a group. | |
(2) | Includes, for each of Messrs. Levan and Abdo, the 3,735,391 shares of Woodbridge’s Class A Common Stock and 243,807 shares of Woodbridge’s Class B Common Stock owned by BFC. The Class A Common Stock ownership of Messrs. Levan and Abdo also includes their indirect ownership of 18 shares and 6,104 shares, respectively. |
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(3) | Includes beneficial ownership of shares of Woodbridge’s Class A Common Stock held in the BankAtlantic Security Plus Plan as a result of BankAtlantic Bancorp’s previous ownership of Woodbridge prior to the 2003 spin-off of Woodbridge as follows: Mr. Levan — 2,998 shares; Mr. Abdo — 1,821 shares; and Mr. Wise — 18 shares. | |
(4) | Includes beneficial ownership of the following shares of Woodbridge’s Class A Common Stock which may be acquired within 60 days pursuant to stock options: Mr. Levan — 12,000 shares; Mr. Abdo — 18,000 shares; Mr. Wise — 6,000 shares; Mr. Dornbush — 4,286 shares; Mr. Alan J. Levy — 2,762 shares; Mr. Joel Levy — 11,435 shares; Mr. Blosser — 19,176 shares; Mr. Nicholson — 18,834 shares; Mr. Scherer — 5,497 shares; and Mr. Kahn — 7,827 shares. | |
(5) | As described elsewhere throughout this joint proxy statement/prospectus, Mr. Scanlon resigned as Executive Vice President and Chief Financial Officer of Woodbridge, effective January 11, 2008, and Mr. Worsham served as acting Chief Financial Officer and acting Chief Accounting Officer of Woodbridge from January 11, 2008 through May 20, 2008. Accordingly, neither of Messrs. Scanlon or Worsham is currently an executive officer of Woodbridge; however, they are included in the table above because they were both Woodbridge Named Executive Officers for 2008. Based on information in its possession, Woodbridge believes that Mr. Scanlon’s current address isc/o Fidelity National Information Services, 601 Riverside Avenue, Jacksonville, Florida 32204 and that Mr. Worsham’s current address isc/o Tatum LLC, 201 East Kennedy Boulevard, Suite 950, Tampa, Florida 33602. | |
(6) | Includes 74 shares of Woodbridge’s Class A Common Stock held indirectly though Mr. Scherer’s IRA account and 56 shares of Woodbridge’s Class A Common Stock held indirectly through his wife’s IRA account. |
(7) | Includes beneficial ownership of an aggregate of 105,817 shares of Woodbridge’s Class A Common Stock which may be acquired by Woodbridge’s directors and executive officers as of August 3, 2009 within 60 days pursuant to the exercise of outstanding stock options. |
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AND RESULTS OF OPERATIONS
• | the impact of economic, competitive and other factors affecting the Company and its operations; | |
• | the market for real estate in the areas where the Company has developments, including the impact of market conditions on the Company’s margins and the fair value of its real estate inventory; |
• | the risk that the value of the property held by Core Communities and Carolina Oak may decline, including as a result of the current downturn in the residential and commercial real estate and homebuilding industries, and the potential for related write-downs or impairment charges; |
• | the impact of the factors negatively impacting the homebuilding and residential real estate industries on the market and values of commercial property; | |
• | the risk that the downturn in the credit markets may adversely affect Core’s commercial leasing projects, including the ability of current and potential tenants to secure financing which may, in turn, negatively impact long-term rental and occupancy; |
• | the risks relating to Core’s dependence on certain key tenants in its commercial leasing projects, including the risk that current adverse conditions in the economy in generaland/or adverse developments in the businesses of these tenants could have a negative impact on Core’s financial condition; |
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• | the risk that the development of parcels and master-planned communities will not be completed as anticipated or that Core will be obligated to make additional payments under its outstanding development bonds; |
• | the effects of increases in interest rates on us and the availability and cost of credit to buyers of our inventory; |
• | the impact of the problems in financial and credit markets on the ability of buyers of our inventory to obtain financing on acceptable terms, if at all, and the risk that we will be unable to obtain financing and to renew existing credit facilities on acceptable terms, if at all; | |
• | the risks relating to Core’s liquidity, cash position and ability to satisfy required payments under its debt facilities, including the risk that Woodbridge may not provide funding to Core; |
• | the risk that Core may be required to make accelerated principal payments on its debt obligations due to re-margining or curtailment payment requirements, which may negatively impact our financial condition and results of operations; |
• | risks associated with the securities owned by the Company, including the risk that the Company may record further impairment charges with respect to such securities in the event trading prices decline in the future; |
• | the risks associated with the businesses in which the Company holds investments; | |
• | risks associated with the Company’s business strategy, including the Company’s ability to successfully make investments notwithstanding adverse conditions in the economy and the credit markets; |
• | the Company’s success in pursuing alternatives that could enhance liquidity for Bluegreen or be profitable for the Company; |
• | the impact on the price and liquidity of the Company’s Class A Common Stock and on the Company’s ability to obtain additional capital in the event the Company chooses to de-register its securities; and | |
• | the Company’s success at managing the risks involved in the foregoing. |
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Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2009 | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Sales of real estate | $ | 1,767 | 2,395 | (628 | ) | 3,194 | 2,549 | 645 | ||||||||||||||||
Other revenues | 3,046 | 2,744 | 302 | 5,936 | 5,708 | 228 | ||||||||||||||||||
Total revenues | 4,813 | 5,139 | (326 | ) | 9,130 | 8,257 | 873 | |||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||
Cost of sales of real estate | 1,301 | 1,758 | (457 | ) | 1,994 | 1,786 | 208 | |||||||||||||||||
Selling, general and administrative expenses | 10,349 | 12,952 | (2,603 | ) | 21,103 | 25,579 | (4,476 | ) | ||||||||||||||||
Interest expense | 3,747 | 2,532 | 1,215 | 6,520 | 5,556 | 964 | ||||||||||||||||||
Total costs and expenses | 15,397 | 17,242 | (1,845 | ) | 29,617 | 32,921 | (3,304 | ) | ||||||||||||||||
Earnings from Bluegreen Corporation | 10,714 | 1,211 | 9,503 | 17,050 | 1,737 | 15,313 | ||||||||||||||||||
Impairment of investment in Bluegreen | ||||||||||||||||||||||||
Corporation | — | — | — | (20,401 | ) | — | (20,401 | ) | ||||||||||||||||
Impairment of other investments | — | — | — | (2,396 | ) | — | (2,396 | ) | ||||||||||||||||
Gain on settlement of investment in subsidiary | — | — | — | 40,369 | — | 40,369 | ||||||||||||||||||
Interest and other income | 277 | 1,950 | (1,673 | ) | 843 | 3,554 | (2,711 | ) | ||||||||||||||||
Income (loss) before income taxes and noncontrolling interest | 407 | (8,942 | ) | 9,349 | 14,978 | (19,373 | ) | 34,351 | ||||||||||||||||
(Provision) benefit for income taxes | — | — | — | — | ||||||||||||||||||||
Net income (loss) | 407 | (8,942 | ) | 9,349 | 14,978 | (19,373 | ) | 34,351 | ||||||||||||||||
Add: Net loss attributable to noncontrolling interest | 270 | — | 270 | 474 | — | 474 | ||||||||||||||||||
Net income (loss) attributable to Woodbridge | $ | 677 | (8,942 | ) | 9,619 | 15,452 | (19,373 | ) | 34,825 | |||||||||||||||
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Three Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 1,408 | 1,711 | (303 | ) | |||||||
Other Operations | 320 | 635 | (315 | ) | ||||||||
Eliminations | 39 | 49 | (10 | ) | ||||||||
Consolidated | $ | 1,767 | 2,395 | (628 | ) | |||||||
Three Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 2,533 | 2,493 | 40 | ||||||||
Other Operations | 521 | 251 | 270 | |||||||||
Eliminations | (8 | ) | — | (8 | ) | |||||||
Consolidated | $ | 3,046 | 2,744 | 302 | ||||||||
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Three Months Ended June 30, | ||||||||||||||||||||
2009 | 2008 | Change | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Land Division | $ | 1,113 | 1,145 | (32 | ) | |||||||||||||||
Other Operations | 173 | 587 | (414 | ) | ||||||||||||||||
Eliminations | 15 | 26 | (11 | ) | ||||||||||||||||
Consolidated | $ | 1,301 | 1,758 | (457 | ) | |||||||||||||||
Three Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 5,162 | 5,320 | (158 | ) | |||||||
Other Operations | 5,209 | 7,651 | (2,442 | ) | ||||||||
Eliminations | (22 | ) | (19 | ) | (3 | ) | ||||||
Consolidated | $ | 10,349 | 12,952 | (2,603 | ) | |||||||
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Three Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 1,301 | 871 | 430 | ||||||||
Other Operations | 2,446 | 2,104 | 342 | |||||||||
Eliminations | — | (443 | ) | 443 | ||||||||
Consolidated | $ | 3,747 | 2,532 | 1,215 | ||||||||
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Six Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 2,835 | 1,865 | 970 | ||||||||
Other Operations | 320 | 635 | (315 | ) | ||||||||
Eliminations | 39 | 49 | (10 | ) | ||||||||
Consolidated | $ | 3,194 | 2,549 | 645 | ||||||||
Six Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 4,810 | 5,198 | (388 | ) | |||||||
Other Operations | 1,143 | 510 | 633 | |||||||||
Eliminations | (17 | ) | — | (17 | ) | |||||||
Consolidated | $ | 5,936 | 5,708 | 228 | ||||||||
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Six Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 1,806 | 1,173 | 633 | ||||||||
Other Operations | 173 | 587 | (414 | ) | ||||||||
Eliminations | 15 | 26 | (11 | ) | ||||||||
Consolidated | $ | 1,994 | 1,786 | 208 | ||||||||
Six Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 11,409 | 10,851 | 558 | ||||||||
Other Operations | 9,716 | 14,747 | (5,031 | ) | ||||||||
Eliminations | (22 | ) | (19 | ) | (3 | ) | ||||||
Consolidated | $ | 21,103 | 25,579 | (4,476 | ) | |||||||
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Six Months Ended June 30, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Land Division | $ | 2,671 | 1,864 | 807 | ||||||||
Other Operations | 3,849 | 4,777 | (928 | ) | ||||||||
Eliminations | — | (1,085 | ) | 1,085 | ||||||||
Consolidated | $ | 6,520 | 5,556 | 964 | ||||||||
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Three Months | Six Months | |||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||
2009 | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||
Acres sold | 3 | 3 | — | 13 | 3 | 10 | ||||||||||||||||||
Margin percentage(a) | 21.0 | % | 33.1 | % | (12.1 | )% | 36.3 | % | 37.1 | % | (0.8 | )% | ||||||||||||
Unsold saleable acres | 6,626 | 6,676 | (50 | ) | 6,626 | 6,676 | (50 | ) | ||||||||||||||||
Acres subject to sales contracts — third parties(b) | 8 | 326 | (318 | ) | 8 | 326 | (318 | ) | ||||||||||||||||
Aggregate sales price of acres subject to sales contracts to third parties (in thousands)(b) | $ | — | 96,164 | (96,164 | ) | — | 96,164 | (96,164 | ) |
(a) | Includes revenues from look back provisions and recognition of deferred revenue associated with sales in prior periods. |
(b) | As of June 30, 2009, approximately 8 acres were subject to a sales contract with a sales price which could range from $3.0 million to $3.9 million at a cost of approximately $2.2 million. The sale is contingent upon the purchaser obtaining financing and, if consummated on the contemplated terms, would not result in a loss. |
• | a net decrease in cash and cash equivalents of $56.6 million, primarily related to cash used in operations offset by approximately $40.3 million repositioned into investment in timed deposits; and |
• | a decrease in restricted cash of $13.4 million mainly associated with the settlement payment made in connection with the bankruptcy of Levitt and Sons. |
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• | a decrease of $52.9 million associated with the reversal into income of the loss in excess of investment in Levitt and Sons as a result of the Bankruptcy Court’s approval of the Levitt and Sons’ bankruptcy plan; and |
• | a net decrease in accounts payable and other accrued liabilities of approximately $1.1 million primarily attributable to the timing of payments to our vendors. |
2008 | 2007 | |||||||||||||||||||
Year Ended December 31, | Vs. 2007 | Vs. 2006 | ||||||||||||||||||
2008 | 2007 | 2006 | Change | Change | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | 13,837 | 410,115 | 566,086 | (396,278 | ) | (155,971 | ) | ||||||||||||
Other revenues | 11,701 | 10,458 | 9,241 | 1,243 | 1,217 | |||||||||||||||
Total revenues | 25,538 | 420,573 | 575,327 | (395,035 | ) | (154,754 | ) | |||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | 12,728 | 573,241 | 482,961 | (560,513 | ) | 90,280 | ||||||||||||||
Selling, general and administrative expenses | 50,754 | 117,924 | 121,151 | (67,170 | ) | (3,227 | ) | |||||||||||||
Interest expense | 10,867 | 3,807 | — | 7,060 | 3,807 | |||||||||||||||
Other expenses | — | 3,929 | 3,677 | (3,929 | ) | 252 | ||||||||||||||
Total costs and expenses | 74,349 | 698,901 | 607,789 | (624,552 | ) | 91,112 | ||||||||||||||
Earnings from Bluegreen Corporation | 8,996 | 10,275 | 9,684 | (1,279 | ) | 591 | ||||||||||||||
Impairment of investment in Bluegreen Corporation | (94,426 | ) | — | — | (94,426 | ) | — | |||||||||||||
Impairment of other investments | (14,120 | ) | — | — | (14,120 | ) | — | |||||||||||||
Interest and other income | 8,030 | 11,264 | 7,844 | (3,234 | ) | 3,420 | ||||||||||||||
Loss before income taxes | (140,331 | ) | (256,789 | ) | (14,934 | ) | 116,458 | (241,855 | ) | |||||||||||
Benefit for income taxes | — | 22,169 | 5,770 | (22,169 | ) | 16,399 | ||||||||||||||
Net loss | $ | (140,331 | ) | (234,620 | ) | (9,164 | ) | 94,289 | (225,456 | ) | ||||||||||
Basic loss per share(c) | $ | (7.35 | ) | (30.00 | ) | (2.27 | ) | 22.65 | (27.73 | ) | ||||||||||
Total diluted loss per share(a)(c) | $ | (7.35 | ) | (30.00 | ) | (2.29 | ) | 22.65 | (27.71 | ) | ||||||||||
Basic weighted average shares outstanding(b)(c) | 19,088 | 7,821 | 4,045 | 11,267 | 3,776 | |||||||||||||||
Diluted weighted average shares outstanding(b)(c) | 19,088 | 7,821 | 4,045 | 11,267 | 3,776 |
(a) | Diluted loss per share takes into account (i) the dilution in earnings we recognize from Bluegreen as a result of outstanding securities issued by Bluegreen that enable the holders thereof to acquire shares of Bluegreen’s common stock and (ii) the dilutive effect of our stock options and restricted stock using the treasury stock method. | |
(b) | The weighted average number of common shares outstanding in basic and diluted loss per common share for 2006 were retroactively adjusted for a number of shares representing the bonus element arising from the rights offering that closed on October 1, 2007. Under the rights offering, shares of our Class A common stock were issued on October 1, 2007 at a purchase price below the market price of such shares on |
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that date resulting in the bonus element of 1.97%. The number of weighted average shares of Class A common stock was retroactively increased by this percentage for 2006. | ||
(c) | On September 26, 2008, we effected aone-for-five reverse stock split. As a result of the reverse stock split, each five shares of our Class A Common Stock outstanding at the time of the reverse stock split automatically converted into one share of Class A Common Stock and each five shares of our Class B Common Stock outstanding at the time of the reverse stock split automatically converted into one share of Class B Common Stock. Accordingly, all share and per share data presented herein for prior periods have been retroactively adjusted to reflect the reverse stock split. |
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2008 | 2007 | |||||||||||||||||||
Year Ended December 31, | Vs. 2007 | Vs. 2006 | ||||||||||||||||||
2008 | 2007 | 2006 | Change | Change | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | 11,268 | 16,567 | 69,778 | (5,299 | ) | (53,211 | ) | ||||||||||||
Other revenues | 10,592 | 7,585 | 3,816 | 3,007 | 3,769 | |||||||||||||||
Total revenues | 21,860 | 24,152 | 73,594 | (2,292 | ) | (49,442 | ) | |||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | 6,632 | 7,447 | 42,662 | (815 | ) | (35,215 | ) | |||||||||||||
Selling, general and administrative expenses | 24,608 | 19,077 | 15,119 | 5,531 | 3,958 | |||||||||||||||
Interest expense | 3,637 | 2,629 | — | 1,008 | 2,629 | |||||||||||||||
Total costs and expenses | 34,877 | 29,153 | 57,781 | 5,724 | (28,628 | ) | ||||||||||||||
Interest and other income | 5,685 | 4,489 | 2,650 | 1,196 | 1,839 | |||||||||||||||
(Loss) income before income taxes | (7,332 | ) | (512 | ) | 18,463 | (6,820 | ) | (18,975 | ) | |||||||||||
Provision for income taxes | — | (5,910 | ) | (6,936 | ) | 5,910 | 1,026 | |||||||||||||
Net (loss)income | $ | (7,332 | ) | (6,422 | ) | 11,527 | (910 | ) | (17,949 | ) | ||||||||||
Operational data: | ||||||||||||||||||||
Acres sold(a) | 40 | 40 | 371 | — | (331 | ) | ||||||||||||||
Margin percentage(b) | 41.1 | % | 55.0 | % | 38.9 | % | (13.9 | )% | 16.1 | % | ||||||||||
Unsold saleable acres | 6,639 | 6,679 | 6,871 | (40 | ) | (192 | ) | |||||||||||||
Acres subject to sales contracts — Third parties | 10 | 259 | 74 | (249 | ) | 185 | ||||||||||||||
Aggregate sales price of acres subject to sales contracts to third parties | $ | 1,050 | 77,888 | 21,124 | (76,838 | ) | 56,764 |
(a) | Includes 5 acres sold related to commercial projects. | |
(b) | Margin percentage is calculated by dividing margin (sales of real estate minus cost of sales of real estate) by sales of real estate. Sales of real estate and margin percentage include lot sales, revenues from look back provisions and recognition of deferred revenue associated with sales in prior periods. |
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2008 | 2007 | |||||||||||||||||||
Year Ended December 31, | Vs. 2007 | Vs. 2006 | ||||||||||||||||||
2008 | 2007 | 2006 | Change | Change | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | 2,484 | 6,574 | 11,041 | (4,090 | ) | (4,467 | ) | ||||||||||||
Other revenues | 1,109 | 952 | 1,435 | 157 | (483 | ) | ||||||||||||||
Total revenues | 3,593 | 7,526 | 12,476 | (3,933 | ) | (4,950 | ) | |||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | 16,151 | 16,793 | 11,649 | (642 | ) | 5,144 | ||||||||||||||
Selling, general and administrative expenses | 26,717 | 32,508 | 28,174 | (5,791 | ) | 4,334 | ||||||||||||||
Interest expense | 8,315 | 1,073 | — | 7,242 | 1,073 | |||||||||||||||
Other expenses | — | 2,390 | 8 | (2,390 | ) | 2,382 | ||||||||||||||
Total costs and expenses | 51,183 | 52,764 | 39,831 | (1,581 | ) | 12,933 | ||||||||||||||
Earnings from Bluegreen Corporation | 8,996 | 10,275 | 9,684 | (1,279 | ) | 591 | ||||||||||||||
Impairment of investment in Bluegreen Corporation | (94,426 | ) | — | — | (94,426 | ) | — | |||||||||||||
Impairment of other investments | (14,120 | ) | — | — | (14,120 | ) | — | |||||||||||||
Interest and other income | 4,001 | 7,367 | 4,059 | (3,366 | ) | 3,308 | ||||||||||||||
Loss before income taxes | (143,139 | ) | (27,596 | ) | (13,612 | ) | (115,543 | ) | (13,984 | ) | ||||||||||
Benefit for income taxes | — | 34,297 | 5,639 | (34,297 | ) | 28,658 | ||||||||||||||
Net (loss) income | $ | (143,139 | ) | 6,701 | (7,973 | ) | (149,840 | ) | 14,674 | |||||||||||
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2008 | 2007 | |||||||||||||||||||
Year Ended December 31, | vs. 2007 | vs. 2006 | ||||||||||||||||||
2008 | 2007 | 2006 | Change | Change | ||||||||||||||||
(Dollars in thousands, except average price data) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | — | 345,666 | 424,420 | (345,666 | ) | (78,754 | ) | ||||||||||||
Other revenues | — | 2,243 | 4,070 | (2,243 | ) | (1,827 | ) | |||||||||||||
Total revenues | — | 347,909 | 428,490 | (347,909 | ) | (80,581 | ) | |||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | — | 501,206 | 367,252 | (501,206 | ) | 133,954 | ||||||||||||||
Selling, general and administrative expenses | — | 61,568 | 65,052 | (61,568 | ) | (3,484 | ) | |||||||||||||
Interest expense | — | 7,258 | — | (7,258 | ) | 7,258 | ||||||||||||||
Other expenses | — | 1,539 | 2,362 | (1,539 | ) | (823 | ) | |||||||||||||
Total costs and expenses | — | 571,571 | 434,666 | (571,571 | ) | 136,905 | ||||||||||||||
Interest and other income | — | 6,933 | 2,982 | (6,933 | ) | 3,951 | ||||||||||||||
(Loss) income before income taxes | — | (216,729 | ) | (3,194 | ) | 216,729 | (213,535 | ) | ||||||||||||
Benefit (provision) for income taxes | — | 1,396 | 1,508 | (1,396 | ) | (112 | ) | |||||||||||||
Net (loss) income | $ | — | (215,333 | ) | (1,686 | ) | 215,333 | (213,647 | ) | |||||||||||
Operational data: | ||||||||||||||||||||
Homes delivered | — | 998 | 1,320 | (998 | ) | (322 | ) | |||||||||||||
Construction starts | — | 558 | 1,445 | (558 | ) | (887 | ) | |||||||||||||
Average selling price of homes delivered | $ | — | 338,000 | 322,000 | (338,000 | ) | 16,000 | |||||||||||||
Margin percentage(a) | — | (45.0 | )% | 13.5 | % | 45.0 | % | (58.5 | )% | |||||||||||
Gross sales contracts (units) | — | 765 | 1,108 | (765 | ) | (343 | ) | |||||||||||||
Sales contracts cancellations (units) | — | 382 | 261 | (382 | ) | 121 | ||||||||||||||
Net orders (units) | — | 383 | 847 | (383 | ) | (464 | ) | |||||||||||||
Net orders (value) | $ | — | 94,782 | 324,217 | (94,782 | ) | (229,435 | ) | ||||||||||||
Backlog of homes (units) | — | — | 1,126 | — | (1,126 | ) | ||||||||||||||
Backlog of homes (value) | $ | — | — | 411,578 | — | (411,578 | ) |
(a) | Margin percentage is calculated by dividing margin (sales of real estate minus cost of sales of real estate) by sales of real estate. |
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2008 | 2007 | |||||||||||||||||||
Year Ended December 31, | Vs. 2007 | Vs. 2006 | ||||||||||||||||||
2008 | 2007 | 2006 | Change | Change | ||||||||||||||||
(Dollars in thousands, except average price data) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | — | 42,042 | 76,299 | (42,042 | ) | (34,257 | ) | ||||||||||||
Total revenues | — | 42,042 | 76,299 | (42,042 | ) | (34,257 | ) | |||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | — | 51,360 | 72,807 | (51,360 | ) | (21,447 | ) | |||||||||||||
Selling, general and administrative expenses | �� | — | 5,010 | 12,806 | (5,010 | ) | (7,796 | ) | ||||||||||||
Interest expense | — | 151 | — | (151 | ) | 151 | ||||||||||||||
Other expenses | — | — | 1,307 | — | (1,307 | ) | ||||||||||||||
Total costs and expenses | — | 56,521 | 86,920 | (56,521 | ) | (30,399 | ) | |||||||||||||
Interest and other income | — | 83 | 127 | (83 | ) | (44 | ) | |||||||||||||
(Loss) income before income taxes | — | (14,396 | ) | (10,494 | ) | 14,396 | (3,902 | ) | ||||||||||||
(Provision) benefit for income taxes | — | (1,700 | ) | 3,241 | 1,700 | (4,941 | ) | |||||||||||||
Net (loss) income | $ | — | (16,096 | ) | (7,253 | ) | 16,096 | (8,843 | ) | |||||||||||
Operational data: | ||||||||||||||||||||
Homes delivered | — | 146 | 340 | (146 | ) | (194 | ) | |||||||||||||
Construction starts | — | 171 | 237 | (171 | ) | (66 | ) | |||||||||||||
Average selling price of homes delivered | $ | — | 205,000 | 224,000 | (205,000 | ) | (19,000 | ) | ||||||||||||
Margin percentage(a) | — | (22.2 | )% | 4.6 | % | 22.2 | % | (26.8 | )% | |||||||||||
Gross sales contracts (units) | — | 266 | 412 | (266 | ) | (146 | ) | |||||||||||||
Sales contracts cancellations (units) | — | 156 | 143 | (156 | ) | 13 | ||||||||||||||
Net orders (units) | — | 110 | 269 | (110 | ) | (159 | ) | |||||||||||||
Net orders (value) | $ | — | 20,621 | 57,776 | (20,621 | ) | (37,155 | ) | ||||||||||||
Backlog of homes (units) | — | — | 122 | — | (122 | ) | ||||||||||||||
Backlog of homes (value) | $ | — | — | 26,662 | — | (26,662 | ) |
(a) | Margin percentage is calculated by dividing margin (sales of real estate minus cost of sales of real estate) by sales of real estate. |
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• | a net decrease in cash and cash equivalents of $80.4 million, which resulted from cash used in operations of $32.9 million, cash used in investing activities of $41.9 million and cash used in financing activities of $5.6 million; | |
• | an increase in restricted cash of $19.1 million primarily related to the funding of the Levitt and Sons Settlement Agreement, providing collateral for a letter of credit as a result of a surety bond claim and the establishment of an interest reserve for one of Core’s loan agreements; | |
• | a decrease in current income tax receivable as a result of the receipt of a $29.7 million federal income tax refund; | |
• | a decrease in our investment in Bluegreen of $86.2 million as a result of impairment charges recorded during 2008; | |
• | a net increase of our investment in other equity securities of $4.3 million as a result of the acquisition (net of shares sold) of shares of Office Depot and a $3.0 million investment in Pizza Fusion; | |
• | an increase in our investment in certificates of deposit of $9.6 million as a result of our investment in FDIC insured certificates of deposit in 2008; | |
• | a net increase in inventory of real estate of $14.0 million primarily associated with the land development activities of the Land Division; and | |
• | a decrease in property and equipment of $8.8 million due to the sale of three ground lease parcels and a depreciation adjustment related to the reclassification into continuing operations of two of Core’s commercial leasing assets previously classified as discontinued operations. |
• | a net decrease in notes and mortgage notes payable of $3.8 million primarily due to curtailment payments made in connection with a development loan collateralized by land in Tradition Hilton Head, offset in part by draws on lines of credit in the Land Division; | |
• | an increase in our current tax liability of approximately $2.4 million relating to our FIN 48 liability which was netted against our current tax asset in 2007; and | |
• | a net decrease in accounts payable and other accrued liabilities of approximately $8.1 million primarily attributable to decreased severance and construction accruals due to payments made during the year ended December 31, 2008. |
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Payments due by period | ||||||||||||||||||||
Less than | 2 - 3 | 4 - 5 | More than | |||||||||||||||||
Category | Total | 1 year | Years | Years | 5 years | |||||||||||||||
Long-term debt obligations(1)(2) | $ | 348,516 | 8,308 | 207,942 | 11,222 | 121,044 | ||||||||||||||
Operating lease obligations | 2,039 | 1,030 | 718 | 291 | — | |||||||||||||||
Total obligations | $ | 350,555 | 9,338 | 208,660 | 11,513 | 121,044 | ||||||||||||||
(1) | Amounts exclude interest because terms of repayment are based on construction activity and sales volume. In addition, a large portion of the debt is based on variable rates. |
(2) | These amounts represent scheduled principal payments. Some of those borrowings require the repayment of specified amounts upon a sale of portions of the property collateralizing those obligations, as well as curtailment repayments prior to scheduled maturity pursuant to re-margining requirements. |
Payments Due by Period | ||||||||||||||||||||
Less Than | 13-36 | 37-60 | More Than | |||||||||||||||||
Category(1) | Total | 12 Months | Months | Months | 60 Months | |||||||||||||||
Long-term debt obligations(2) | $ | 349,952 | 3,567 | 197,233 | 27,574 | 121,578 | ||||||||||||||
Interest payable on long-term debt | 244,269 | 18,140 | 31,476 | 18,855 | 175,798 | |||||||||||||||
Operating lease obligations | 3,797 | 1,279 | 1,062 | 386 | 1,070 | |||||||||||||||
Severance related termination obligations | 129 | 129 | — | — | — | |||||||||||||||
Independent contractor agreements | 681 | 681 | — | — | — | |||||||||||||||
Total obligations | $ | 598,828 | 23,796 | 229,771 | 46,815 | 298,446 | ||||||||||||||
(1) | Long-term debt obligations consist of notes, mortgage notes and bonds payable and junior subordinated debentures. Interest payable on these long-term debt obligations is the interest that will be incurred related to the outstanding debt. Operating lease obligations consist of lease commitments. The timing of contractual payments for debt obligations assumes the exercise of all extensions available at our sole discretion. |
(2) | In addition to the above scheduled payments, Core’s borrowing agreements generally require repayment of specified amounts upon a sale of a portion of the property collateralizing the debt or upon a reappraisal of the underlying collateral if declines in value cause the loan to exceed maximum loan to value ratios. In addition, Core is subject to provisions in its borrowing agreements that require additional principal payments, known as curtailment payments, in the event that sales are below those agreed to at the inception of the borrowing. Total curtailment payments during 2008 amounted to $19.9 million, consisting of a $14.9 million curtailment payment which was paid in January 2008 and an additional $5 million curtailment payment which was paid in June 2008. Additionally, certain borrowings may require increased principal payments on our debt obligations due to re-margining requirements. |
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THE MERGER AND THE RELATED TRANSACTIONS
THE MERGER AGREEMENT
PROXY MATERIALS FOR THE WOODBRIDGE ANNUAL MEETING
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AND FUTURE SHAREHOLDER PROPOSALS
100 F Street, N.E.
Room 1024
Washington, D.C. 20549
199 Water St., 26th Floor
New York, NY10038-3650
Shareholders of BFC Call: 888-666-2593
Shareholders of Woodbridge Call: 877-255-0124
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Page | ||||
Unaudited Financial Statements: | ||||
F-2 | ||||
F-3 | ||||
F-4 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
Audited Financial Statements: | ||||
F-49 | ||||
F-51 | ||||
F-53 | ||||
F-55 | ||||
F-56 | ||||
F-57 | ||||
F-61 | ||||
Bluegreen Corporation: |
F-1
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June 30, | December 31, | |||||||
2009 | 2008 | |||||||
(In thousands, except share data) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 271,873 | 278,937 | |||||
Restricted cash | 7,845 | 21,288 | ||||||
Securities available for sale and other financial instruments (at fair value) | 459,171 | 722,698 | ||||||
Investment securities at cost or amortized cost (fair value: $53,294 in 2009 and $12,475 in 2008) | 52,315 | 12,008 | ||||||
Tax certificates, net of allowance of $7,036 in 2009 and $6,064 in 2008 | 179,110 | 213,534 | ||||||
Federal Home Loan Bank (“FHLB”) stock, at cost which approximates fair value | 48,751 | 54,607 | ||||||
Residential loans held for sale | 7,694 | 3,461 | ||||||
Loans receivable, net of allowance for loan losses $172,220 in 2009 and $137,257 in 2008 | 4,021,067 | 4,314,184 | ||||||
Accrued interest receivable | 35,370 | 41,817 | ||||||
Real estate held for development and sale | 270,958 | 268,763 | ||||||
Real estate owned | 34,317 | 19,045 | ||||||
Investments in unconsolidated affiliates | 40,583 | 41,386 | ||||||
Properties and equipment, net | 304,291 | 315,347 | ||||||
Goodwill and other intangible assets, net | 35,363 | 44,986 | ||||||
Other assets | 44,289 | 43,521 | ||||||
Total assets | $ | 5,812,997 | 6,395,582 | |||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Interest bearing deposits | $ | 3,252,601 | 3,178,105 | |||||
Non-interest bearing deposits | 802,446 | 741,691 | ||||||
Total deposits | 4,055,047 | 3,919,796 | ||||||
Advances from FHLB | 597,252 | 967,491 | ||||||
Federal funds purchased and other short term borrowings | 5,553 | 238,339 | ||||||
Securities sold under agreements to repurchase | 19,515 | 41,387 | ||||||
Subordinated debentures, mortgage notes payable and mortgage-backed bonds | 286,245 | 287,772 | ||||||
Junior subordinated debentures | 383,325 | 376,104 | ||||||
Loss in excess of investment in Woodbridge’s subsidiary | — | 52,887 | ||||||
Other liabilities | 129,080 | 125,356 | ||||||
Total liabilities | 5,476,017 | 6,009,132 | ||||||
Commitments and contingencies | ||||||||
Preferred stock of $.01 par value; authorized — 10,000,000 shares; Redeemable 5% Cumulative Preferred Stock — $.01 par value; authorized 15,000 shares; issued and outstanding 15,000 shares in 2009 and 2008 with a redemption value of $1,000 per share | 11,029 | 11,029 | ||||||
Equity: | ||||||||
Class A common stock of $.01 par value, authorized 100,000,000 shares; issued and outstanding 38,275,112 in 2009 and 38,254,389 in 2008 | 382 | 382 | ||||||
Class B common stock of $.01 par value, authorized 20,000,000 shares; issued and outstanding 6,854,381 in 2009 and 6,875,104 in 2008 | 69 | 69 | ||||||
Additional paid-in capital | 124,728 | 123,562 | ||||||
Accumulated deficit | (32,050 | ) | (8,848 | ) | ||||
Accumulated other comprehensive income (loss) | 3,398 | (2,298 | ) | |||||
Total BFC Financial Corporation (“BFC”) shareholders’ equity | 96,527 | 112,867 | ||||||
Noncontrolling interests | 229,424 | 262,554 | ||||||
Total equity | 325,951 | 375,421 | ||||||
Total liabilities and equity | $ | 5,812,997 | 6,395,582 | |||||
F-2
Table of Contents
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues | ||||||||||||||||
BFC Activities: | ||||||||||||||||
Interest and dividend income | $ | 256 | 340 | 514 | 755 | |||||||||||
Securities activities, net | — | 103 | — | 103 | ||||||||||||
Other income | 274 | 388 | 438 | 1,646 | ||||||||||||
530 | 831 | 952 | 2,504 | |||||||||||||
Financial Services: | ||||||||||||||||
Interest and dividend income | 57,479 | 78,487 | 120,387 | 162,219 | ||||||||||||
Service charges on deposits | 19,347 | 24,466 | 38,032 | 48,480 | ||||||||||||
Other service charges and fees | 8,059 | 7,121 | 15,084 | 14,554 | ||||||||||||
Securities activities, net | 692 | 8,965 | 5,132 | 4,227 | ||||||||||||
Other income | 3,279 | 2,931 | 5,929 | 5,533 | ||||||||||||
88,856 | 121,970 | 184,564 | 235,013 | |||||||||||||
Real Estate Development: | ||||||||||||||||
Sales of real estate | 1,767 | 2,395 | 3,194 | 2,549 | ||||||||||||
Interest and dividend income | 157 | 616 | 404 | 2,071 | ||||||||||||
Securities activities, net | — | 1,178 | — | 1,178 | ||||||||||||
Other income | 3,157 | 2,891 | 6,347 | 5,981 | ||||||||||||
5,081 | 7,080 | 9,945 | 11,779 | |||||||||||||
Total revenues | 94,467 | 129,881 | 195,461 | 249,296 | ||||||||||||
Costs and Expenses | ||||||||||||||||
BFC Activities: | ||||||||||||||||
Employee compensation and benefits | 2,117 | 2,344 | 4,313 | 5,504 | ||||||||||||
Other expenses | 737 | 851 | 1,438 | 1,778 | ||||||||||||
2,854 | 3,195 | 5,751 | 7,282 | |||||||||||||
Financial Services: | ||||||||||||||||
Interest expense | 20,814 | 32,875 | 45,573 | 73,950 | ||||||||||||
Provision for loan losses | 43,494 | 47,247 | 87,771 | 90,135 | ||||||||||||
Employee compensation and benefits | 25,935 | 33,181 | 54,741 | 68,336 | ||||||||||||
Occupancy and equipment | 14,842 | 16,172 | 29,753 | 32,558 | ||||||||||||
Advertising and promotion | 1,979 | 3,662 | 4,811 | 8,557 | ||||||||||||
Restructuring charges and exit activities | 1,406 | 5,762 | 3,281 | 5,597 | ||||||||||||
Cost associated with debt redemption | 1,441 | 1 | 2,032 | 2 | ||||||||||||
Provision for tax certificates losses | 1,414 | 924 | 2,900 | 807 | ||||||||||||
Impairment of goodwill | — | — | 8,541 | — | ||||||||||||
Impairment of real estate owned | 411 | 190 | 623 | 240 | ||||||||||||
FDIC special assessment | 2,428 | — | 2,428 | — | ||||||||||||
Other expenses | 12,737 | 13,416 | 26,039 | 26,980 | ||||||||||||
126,901 | 153,430 | 268,493 | 307,162 | |||||||||||||
Real Estate Development: | ||||||||||||||||
Cost of sales of real estate | 1,301 | 1,760 | 1,994 | 1,848 | ||||||||||||
Interest expense, net of interest capitalized | 3,747 | 2,478 | 6,520 | 5,389 | ||||||||||||
Selling, general and administrative expenses | 9,945 | 12,530 | 20,284 | 24,981 | ||||||||||||
14,993 | 16,768 | 28,798 | 32,218 | |||||||||||||
Total costs and expenses | 144,748 | 173,393 | 303,042 | 346,662 | ||||||||||||
Equity in earnings from unconsolidated affiliates | 10,755 | 1,443 | 17,250 | 3,246 | ||||||||||||
Impairment of unconsolidated affiliates | — | — | (20,401 | ) | — | |||||||||||
Impairment of investments | — | — | (2,396 | ) | — | |||||||||||
Gain on settlement of investment in Woodbridge’s subsidiary | — | — | 40,369 | — | ||||||||||||
Loss from continuing operations before income taxes | (39,526 | ) | (42,069 | ) | (72,759 | ) | (94,120 | ) | ||||||||
Benefit for income taxes | — | (15,326 | ) | — | (34,279 | ) | ||||||||||
Loss from continuing operations | (39,526 | ) | (26,743 | ) | (72,759 | ) | (59,841 | ) | ||||||||
Discontinued operations, less income tax provision of | ||||||||||||||||
$0 and $705 for 2009 and 2008 | — | — | 4,201 | 1,019 | ||||||||||||
Net loss | (39,526 | ) | (26,743 | ) | (68,558 | ) | (58,822 | ) | ||||||||
Less: Net loss attributable to noncontrolling interests | 26,617 | 21,826 | 45,246 | 48,034 | ||||||||||||
Net loss attributable to BFC | (12,909 | ) | (4,917 | ) | (23,312 | ) | (10,788 | ) | ||||||||
5% Preferred stock dividends | (187 | ) | (187 | ) | (375 | ) | (375 | ) | ||||||||
Net loss allocable to common stock | $ | (13,096 | ) | (5,104 | ) | (23,687 | ) | (11,163 | ) | |||||||
Basic and Diluted (Loss) Earnings Per Common Share Attributable to BFC (Note 20): | ||||||||||||||||
Basic (Loss) Earnings Per Common Share | ||||||||||||||||
Loss per share from continuing operations | $ | (0.29 | ) | (0.11 | ) | (0.55 | ) | (0.25 | ) | |||||||
Earnings per share from discontinued operations | — | — | 0.03 | — | ||||||||||||
Net loss per common share | $ | (0.29 | ) | (0.11 | ) | (0.52 | ) | (0.25 | ) | |||||||
Diluted (Loss) Earnings Per Common Share | ||||||||||||||||
Loss per share from continuing operations | $ | (0.29 | ) | (0.11 | ) | (0.55 | ) | (0.25 | ) | |||||||
Earnings per share from discontinued operations | — | — | 0.03 | — | ||||||||||||
Net loss per common share | $ | (0.29 | ) | (0.11 | ) | (0.52 | ) | (0.25 | ) | |||||||
Basic weighted average number of common shares outstanding | 45,126 | 45,112 | 45,120 | 45,108 | ||||||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 45,126 | 45,112 | 45,120 | 45,108 | ||||||||||||
F-3
Table of Contents
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Net loss | $ | (39,526 | ) | (26,743 | ) | (68,558 | ) | (58,822 | ) | |||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Unrealized gains (losses) on securities available for sale | 6,705 | (6,284 | ) | 13,721 | (12,025 | ) | ||||||||||
Benefit for income taxes | — | (2,935 | ) | — | (5,149 | ) | ||||||||||
6,705 | (3,349 | ) | 13,721 | (6,876 | ) | |||||||||||
Unrealized gains (losses) associated with investment in unconsolidated affiliates | 132 | (799 | ) | 605 | (1,226 | ) | ||||||||||
Benefit for income taxes | — | (247 | ) | — | (412 | ) | ||||||||||
132 | (552 | ) | 605 | (814 | ) | |||||||||||
Pro-rata share of cumulative impact of accounting changes recognized by Bluegreen Corporation on retained interests in notes receivable sold | (1,251 | ) | — | (1,251 | ) | — | ||||||||||
Benefit for income taxes | — | — | — | — | ||||||||||||
(1,251 | ) | — | (1,251 | ) | — | |||||||||||
Reclassification adjustments of realized net gains included in net loss | (693 | ) | (6,010 | ) | (2,737 | ) | (3,974 | ) | ||||||||
Less: Provision for income taxes | — | (2,029 | ) | — | (1,243 | ) | ||||||||||
(693 | ) | (3,981 | ) | (2,737 | ) | (2,731 | ) | |||||||||
Total other comprehensive income (loss), net of tax | 4,893 | (7,882 | ) | 10,338 | (10,421 | ) | ||||||||||
Comprehensive loss | (34,633 | ) | (34,625 | ) | (58,220 | ) | (69,243 | ) | ||||||||
Less: Comprehensive loss attributable to noncontrolling interests | 25,864 | 28,634 | 40,604 | 56,804 | ||||||||||||
Comprehensive loss attributable to BFC | $ | (8,769 | ) | (5,991 | ) | (17,616 | ) | (12,439 | ) | |||||||
F-4
Table of Contents
Accumulated | Total | Non- | ||||||||||||||||||||||||||||||||||||||
Shares of Common | Class A | Class B | Additional | Other | BFC | Controlling | ||||||||||||||||||||||||||||||||||
Stock Outstanding | Common | Common | Paid-in | Accumulated | Comprehensive | Shareholders’ | Interests in | Total | ||||||||||||||||||||||||||||||||
Class A | Class B | Stock | Stock | Capital | Deficit | (Loss) Income | Equity | Subsidiaries | Equity | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2008 | 38,254 | 6,875 | $ | 382 | $ | 69 | $ | 123,562 | $ | (8,848 | ) | $ | (2,298 | ) | $ | 112,867 | $ | 262,554 | $ | 375,421 | ||||||||||||||||||||
Net loss | — | — | — | — | — | (23,312 | ) | — | (23,312 | ) | (45,246 | ) | (68,558 | ) | ||||||||||||||||||||||||||
Transfer of common stock | 21 | (21 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Pro rata share of the cumulative effect of accounting changes recognized by Bluegreen on retained interests in notes receivable sold(a) | — | — | — | — | — | 485 | — | 485 | 1,575 | 2,060 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 5,696 | 5,696 | 4,642 | 10,338 | ||||||||||||||||||||||||||||||
Noncontrolling interests net effect of subsidiaries’ capital transactions | — | — | — | — | — | — | — | — | 5,899 | 5,899 | ||||||||||||||||||||||||||||||
Net effect of subsidiaries’ capital transactions attributable to BFC | — | — | — | — | 732 | — | — | 732 | — | 732 | ||||||||||||||||||||||||||||||
Cash dividends on the 5% Preferred Stock | — | — | — | — | — | (375 | ) | — | (375 | ) | — | (375 | ) | |||||||||||||||||||||||||||
Share-based compensation related to stock options and restricted stock | — | — | — | — | 434 | — | — | 434 | — | 434 | ||||||||||||||||||||||||||||||
Balance, June 30, 2009 | 38,275 | 6,854 | $ | 382 | $ | 69 | $ | 124,728 | $ | (32,050 | ) | $ | 3,398 | $ | 96,527 | $ | 229,424 | $ | 325,951 | |||||||||||||||||||||
(a) | Accumulated deficit at January 1, 2009 was decrease by approximately $485,000 representing the Company’s pro rata share of the after tax non-credit portion of other-than temporary impairment losses recognized by Bluegreen Corporation (“Bluegreen”) upon its adoption of FSPFAS 115-2. These other-than temporary losses which were previously recognized in earnings have been reclassified to accumulated other comprehensive income (loss). |
F-5
Table of Contents
For the Six Months | ||||||||
Ended June 30, | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
Net cash provided by (used in) operating activities | $ | 11,017 | (21,004 | ) | ||||
Investing activities: | ||||||||
Proceeds from redemption and maturities of investment securities and tax certificates | 98,569 | 82,519 | ||||||
Purchase of investment securities and tax certificates | (107,816 | ) | (311,011 | ) | ||||
Purchase of securities available for sale | — | (288,231 | ) | |||||
Proceeds from sales of securities available for sale | 205,679 | 365,490 | ||||||
Proceeds from maturities of securities available for sale | 80,047 | 99,473 | ||||||
Decrease in restricted cash | 13,443 | 1,478 | ||||||
Cash paid in settlement of Woodbridge’s subsidiary bankruptcy | (12,430 | ) | — | |||||
Purchases of FHLB stock | (2,295 | ) | (31,140 | ) | ||||
Redemption of FHLB stock | 8,151 | 19,486 | ||||||
Investments in unconsolidated affiliates | (630 | ) | 139 | |||||
Distributions from unconsolidated affiliates | 398 | 2,021 | ||||||
Net decrease (increase) in loans | 185,352 | (20,787 | ) | |||||
Proceeds from the sale of loans receivable | 5,427 | 10,100 | ||||||
Adjustment to acquisition of Pizza Fusion | 3,000 | — | ||||||
Improvements to real estate owned | (577 | ) | (19 | ) | ||||
Proceeds from sales of real estate owned | 1,372 | 1,054 | ||||||
Net additions to office properties and equipment | (1,928 | ) | (5,669 | ) | ||||
Net cash outflows from the sale of Central Florida branches | — | (4,491 | ) | |||||
Net cash provided by (used in) investing activities | 475,762 | (79,588 | ) | |||||
Financing activities: | ||||||||
Net increase (decrease) in deposits | 135,251 | (49,628 | ) | |||||
Prepayments of FHLB advances | (526,032 | ) | — | |||||
Net proceeds (repayments) of FHLB advances | 154,000 | 260,000 | ||||||
Decrease in securities sold under agreements to repurchase | (21,872 | ) | 1,994 | |||||
Decrease in federal funds purchased | (232,786 | ) | (33,975 | ) | ||||
Repayment of notes and bonds payable | (1,656 | ) | (23,075 | ) | ||||
Proceeds from notes and bonds payable | 132 | 7,283 | ||||||
Preferred stock dividends paid | (375 | ) | (375 | ) | ||||
Proceeds from issuance of BankAtlantic Bancorp Class A common stock | — | 104 | ||||||
Purchase and retirement of Woodbridge Class A common stock | (13 | ) | — | |||||
BankAtlantic Bancorp cash dividends paid to non-BFC shareholders | (198 | ) | (432 | ) | ||||
Venture partnership distribution paid to non-BFC interest holder | — | (410 | ) | |||||
Payment of Woodbridge debt issuance costs | (294 | ) | (124 | ) | ||||
Net cash (used in) provided by financing activities | (493,843 | ) | 161,362 | |||||
(Decrease) increase in cash and cash equivalents | (7,064 | ) | 60,770 | |||||
Cash and cash equivalents at the beginning of period | 278,937 | 332,155 | ||||||
Cash and cash equivalents at end of period | $ | 271,873 | 392,925 | |||||
Supplemental cash flow information: | ||||||||
Interest paid on borrowings and deposits | $ | 54,641 | 83,340 | |||||
Supplementary disclosure of non-cash investing and financing activities: | ||||||||
Loans and tax certificates transferred to REO | 16,403 | 4,266 | ||||||
Increase (decrease) in BFC accumulated other comprehensive income, net of taxes | 5,696 | (1,651 | ) | |||||
Net increase in equity from the effect of subsidiaries’ capital transactions to BFC, net of income taxes | 732 | 329 | ||||||
Net increase in shareholders’ equity resulting from the cumulative impact of accounting changes recognized by Bluegreen on retained interests in notes receivable sold | 485 | — |
F-6
Table of Contents
1. | Presentation of Interim Financial Statements |
Shares | Percent of | Percent of | ||||||||||
Owned | Ownership | Vote | ||||||||||
BankAtlantic Bancorp | ||||||||||||
Class A Common Stock | 2,389,697 | 23.28 | % | 12.34 | % | |||||||
Class B Common Stock | 975,225 | 100.00 | % | 47.00 | % | |||||||
Total | 3,364,922 | 29.94 | % | 59.34 | % | |||||||
Woodbridge Holdings Corporation | ||||||||||||
Class A Common Stock | 3,735,392 | 22.45 | % | 11.90 | % | |||||||
Class B Common Stock | 243,807 | 100.00 | % | 47.00 | % | |||||||
Total | 3,979,199 | 23.57 | % | 58.90 | % |
F-7
Table of Contents
F-8
Table of Contents
F-9
Table of Contents
2. | Liquidity |
F-10
Table of Contents
F-11
Table of Contents
3. | Fair Value Measurement |
Fair Value Measurements at June 30, 2009 Using | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
June 30. | Assets | Inputs | Inputs | |||||||||||||
Description | 2009 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Mortgage-backed securities | $ | 293,141 | — | 293,141 | — | |||||||||||
REMICS(1) | 137,591 | — | 137,591 | — | ||||||||||||
Bonds | 250 | — | — | 250 | ||||||||||||
Benihana’s Convertible Preferred Stock | 20,511 | — | — | 20,511 | ||||||||||||
Other equity securities(2) | 7,678 | 7,468 | — | 210 | ||||||||||||
Total securities available for sale at fair value | $ | 459,171 | 7,468 | 430,732 | 20,971 | |||||||||||
Fair Value Measurements at December 31, 2008 Using: | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
December 31, | Assets | Inputs | Inputs | |||||||||||||
Description | 2008 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Mortgage-backed securities | $ | 532,873 | — | 532,873 | — | |||||||||||
REMICS | 166,351 | — | 166,351 | — | ||||||||||||
Bonds | 250 | — | — | 250 | ||||||||||||
Benihana’s Convertible Preferred Stock | 16,426 | — | — | 16,426 | ||||||||||||
Other equity securities(2) | 6,798 | 5,210 | — | 1,588 | ||||||||||||
Total securities available for sale at fair value | $ | 722,698 | 5,210 | 699,224 | 18,264 | |||||||||||
(1) | BankAtlantic invests in real estate mortgage investment conduits (“REMICs”) that are guaranteed by the U.S. government or its agencies. |
(2) | Equity securities includes Woodbridge’s investment in Office Depot’s common stock with an estimated fair value of approximately $6.5 million and $4.3 million at June 30, 2009 and December 31, 2008, respectively. (See Note 9) |
F-12
Table of Contents
Three Months Ended June 30, 2009 | ||||||||||||||||
Benihana | ||||||||||||||||
Convertible | Equity | |||||||||||||||
Bonds | Preferred Stock | Securities | Total | |||||||||||||
Beginning Balance | $ | 250 | 16,384 | 1,252 | 17,886 | |||||||||||
Total gains and losses (realized/unrealized) | ||||||||||||||||
Included in earnings | — | — | (1,378 | ) | (1,378 | ) | ||||||||||
Included in other comprehensive income | — | 4,127 | 336 | 4,463 | ||||||||||||
Purchases, issuances, and settlements | — | — | — | — | ||||||||||||
Transfers in and/or out of Level 3 | — | — | — | |||||||||||||
Ending balance | $ | 250 | 20,511 | 210 | 20,971 | |||||||||||
Six Months Ended June 30, 2009 | ||||||||||||||||
Benihana | ||||||||||||||||
Convertible | Equity | |||||||||||||||
Bonds | Preferred Stock | Securities | Total | |||||||||||||
Beginning Balance | $ | 250 | 16,426 | 1,588 | 18,264 | |||||||||||
Total gains and losses (realized/unrealized) | ||||||||||||||||
Included in earnings | — | — | (1,378 | ) | (1,378 | ) | ||||||||||
Included in other comprehensive income | — | 4,085 | — | 4,085 | ||||||||||||
Purchases, issuances, and settlements | — | — | — | — | ||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||||
Ending balance | $ | 250 | 20,511 | 210 | 20,971 | |||||||||||
Stifel | Equity | |||||||||||||||
Bonds | Warrants | Securities | Total | |||||||||||||
Beginning Balance | $ | 481 | 8,805 | 4,348 | 13,634 | |||||||||||
Total gains and losses (realized/unrealized) | ||||||||||||||||
Included in earnings | — | 4,452 | — | 4,452 | ||||||||||||
Included in other comprehensive income | 1 | — | (976 | ) | (975 | ) | ||||||||||
Purchases, issuances, and settlements | — | — | — | — | ||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||||
Ending balance, June 30, 2008 | $ | 482 | 13,257 | 3,372 | 17,111 | |||||||||||
F-13
Table of Contents
Stifel | Equity | |||||||||||||||
Bonds | Warrants | Securities | Total | |||||||||||||
Beginning Balance | $ | 681 | 10,661 | 5,133 | 16,475 | |||||||||||
Total gains and losses (realized/unrealized) | ||||||||||||||||
Included in earnings | — | 2,596 | — | 2,596 | ||||||||||||
Included in other comprehensive income | 1 | — | (1,761 | ) | (1,760 | ) | ||||||||||
Purchases, issuances, and settlements | (200 | ) | — | — | (200 | ) | ||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||||
Ending balance, June 30, 2008 | $ | 482 | 13,257 | 3,372 | 17,111 | |||||||||||
F-14
Table of Contents
Fair Value Measurements at June 30, 2009 | ||||||||||||||||||||
Quoted Prices in | ||||||||||||||||||||
Active Markets | Significant | Significant | ||||||||||||||||||
for Identical | Other Observable | Unobservable | ||||||||||||||||||
June 30, | Assets | Inputs | Inputs | Total | ||||||||||||||||
Description | 2009 | (Level 1) | (Level 2) | (Level 3) | Impairments | |||||||||||||||
Loans measured for impairment using the fair value of the collateral | $ | 177,326 | — | — | 177,326 | $ | 37,744 | |||||||||||||
Impaired real estate owned | 2,955 | — | — | 2,955 | 623 | |||||||||||||||
Impaired real estate held for sale | 2,130 | — | — | 2,130 | 33 | |||||||||||||||
Impaired goodwill | — | — | — | — | 8,541 | |||||||||||||||
Investment in Bluegreen | 23,984 | 23,984 | — | — | 20,401 | |||||||||||||||
Total | $ | 206,395 | 23,984 | — | 182,411 | $ | 67,342 | |||||||||||||
F-15
Table of Contents
June 30, 2009 | December 31, 2008 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 271,873 | 271,873 | 278,937 | 278,937 | |||||||||||
Restricted cash | 7,845 | 7,845 | 21,288 | 21,288 | ||||||||||||
Securities available for sale | 459,171 | 459,171 | 722,698 | 722,698 | ||||||||||||
Investment securities | 52,315 | 53,294 | 12,008 | 12,475 | ||||||||||||
Tax Certificates | 179,110 | 185,483 | 213,534 | 224,434 | ||||||||||||
Federal home loan bank stock | 48,751 | 48,751 | 54,607 | 54,607 | ||||||||||||
Loans receivable including loans held for sale, net | 4,041,217 | 3,659,724 | 4,317,645 | 3,950,557 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Deposits | $ | 4,055,047 | 4,045,715 | 3,919,796 | 3,919,810 | |||||||||||
Short term borrowings | 25,068 | 25,068 | 279,726 | 279,777 | ||||||||||||
Advances from FHLB | 597,252 | 605,809 | 967,491 | 983,582 | ||||||||||||
Subordinated debentures, mortgage and notes payable | 286,245 | 272,409 | 287,772 | 266,851 | ||||||||||||
Junior subordinated debentures | 383,325 | 122,661 | 376,104 | 152,470 |
F-16
Table of Contents
F-17
Table of Contents
4. | Noncontrolling Interests |
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
BankAtlantic Bancorp | $ | 116,699 | 170,888 | |||||
Woodbridge | 108,790 | 91,389 | ||||||
Other subsidiaries | 3,935 | 277 | ||||||
$ | 229,424 | 262,554 | ||||||
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Noncontrolling Interests — Continuing Operations: | ||||||||||||||||
BankAtlantic Bancorp | $ | 26,868 | 14,806 | 59,517 | 33,585 | |||||||||||
Woodbridge | (518 | ) | 7,094 | (11,814 | ) | 15,368 | ||||||||||
Other subsidiaries | 267 | (74 | ) | 486 | (62 | ) | ||||||||||
$ | 26,617 | 21,826 | 48,189 | 48,891 | ||||||||||||
Noncontrolling Interests — Discontinued Operations: | ||||||||||||||||
BankAtlantic Bancorp | $ | — | — | (2,943 | ) | (857 | ) | |||||||||
Woodbridge | — | — | — | — | ||||||||||||
Other subsidiaries | — | — | — | — | ||||||||||||
$ | — | — | (2,943 | ) | (857 | ) | ||||||||||
Net Loss (Income) Attributable to Noncontrolling Interests | $ | 26,617 | 21,826 | 45,246 | 48,034 | |||||||||||
5. | Segment Reporting |
F-18
Table of Contents
F-19
Table of Contents
BankAtlantic | ||||||||||||||||||||||||||||
Bancorp | Woodbridge | Eliminations | ||||||||||||||||||||||||||
For the Three Months Ended | BFC | Other | Land | Other | and | |||||||||||||||||||||||
June 30, 2009 | Activities | BankAtlantic | Operations | Division | Operations | Adjustments | Total | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Sales of real estate | $ | — | — | — | 1,408 | 320 | 39 | 1,767 | ||||||||||||||||||||
Interest and dividend income | 256 | 56,991 | 196 | 50 | 116 | 283 | 57,892 | |||||||||||||||||||||
Other income | 1,008 | 32,751 | (971 | ) | 2,613 | 575 | (1,168 | ) | 34,808 | |||||||||||||||||||
Total revenues | 1,264 | 89,742 | (775 | ) | 4,071 | 1,011 | (846 | ) | 94,467 | |||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||
Cost of sale of real estate | — | — | — | 1,113 | 173 | 15 | 1,301 | |||||||||||||||||||||
Interest expense, net | — | 16,913 | 4,002 | 1,301 | 2,446 | (101 | ) | 24,561 | ||||||||||||||||||||
Provision for loan losses | — | 35,955 | 7,539 | — | — | — | 43,494 | |||||||||||||||||||||
Other expenses | 2,915 | 61,077 | 1,860 | 5,162 | 5,209 | (831 | ) | 75,392 | ||||||||||||||||||||
Total costs and expenses | 2,915 | 113,945 | 13,401 | 7,576 | 7,828 | (917 | ) | 144,748 | ||||||||||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | (17 | ) | 25 | (2 | ) | — | 10,714 | 35 | 10,755 | |||||||||||||||||||
(Loss) income from continuing operations before income taxes | (1,668 | ) | (24,178 | ) | (14,178 | ) | (3,505 | ) | 3,897 | 106 | (39,526 | ) | ||||||||||||||||
Benefit for income taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Net (loss) income | (1,668 | ) | (24,178 | ) | (14,178 | ) | (3,505 | ) | 3,897 | 106 | (39,526 | ) | ||||||||||||||||
Less: Net loss attributable to noncontrolling interests | (3 | ) | 16,936 | 9,931 | 2,823 | (2,878 | ) | (192 | ) | 26,617 | ||||||||||||||||||
Net (loss) income attributable to BFC | $ | (1,671 | ) | (7,242 | ) | (4,247 | ) | (682 | ) | 1,019 | (86 | ) | (12,909 | ) | ||||||||||||||
Total assets | $ | 42,853 | 5,189,711 | 469,533 | 329,889 | 201,526 | (420,515 | ) | 5,812,997 | |||||||||||||||||||
F-20
Table of Contents
BankAtlantic | ||||||||||||||||||||||||||||
Bancorp | Woodbridge | Eliminations | ||||||||||||||||||||||||||
For the Three Months Ended | BFC | Other | Land | Other | and | |||||||||||||||||||||||
June 30, 2008 | Activities | BankAtlantic | Operations | Division | Operations | Adjustments | Total | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Sales of real estate | $ | — | — | — | 1,711 | 635 | 49 | 2,395 | ||||||||||||||||||||
Interest and dividend income | 342 | 78,081 | 469 | 135 | 490 | (74 | ) | 79,443 | ||||||||||||||||||||
Other income | 1,311 | 37,539 | 6,314 | 3,019 | 1,493 | (1,633 | ) | 48,043 | ||||||||||||||||||||
Total revenues | 1,653 | 115,620 | 6,783 | 4,865 | 2,618 | (1,658 | ) | 129,881 | ||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||
Cost of sales of real estate | — | — | — | 1,145 | 587 | 28 | 1,760 | |||||||||||||||||||||
Interest expense, net | — | 28,158 | 4,791 | 871 | 2,104 | (571 | ) | 35,353 | ||||||||||||||||||||
Provision for loan losses | — | 37,801 | 9,446 | — | — | — | 47,247 | |||||||||||||||||||||
Other expenses | 3,281 | 72,337 | 1,666 | 5,320 | 7,651 | (1,222 | ) | 89,033 | ||||||||||||||||||||
Total costs and expenses | 3,281 | 138,296 | 15,903 | 7,336 | 10,342 | (1,765 | ) | 173,393 | ||||||||||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | (55 | ) | (811 | ) | 1,098 | — | 1,211 | — | 1,443 | |||||||||||||||||||
Loss from continuing operations before income taxes | (1,683 | ) | (23,487 | ) | (8,022 | ) | (2,471 | ) | (6,513 | ) | 107 | (42,069 | ) | |||||||||||||||
Benefit for income taxes | (3,180 | ) | (9,428 | ) | (2,718 | ) | — | — | — | (15,326 | ) | |||||||||||||||||
Net (loss) income | 1,497 | (14,059 | ) | (5,304 | ) | (2,471 | ) | (6,513 | ) | 107 | (26,743 | ) | ||||||||||||||||
Less: Net loss attributable to noncontrolling interests | 51 | 8,654 | 3,261 | 2,708 | 7,189 | (37 | ) | 21,826 | ||||||||||||||||||||
Net (loss) income attributable to BFC | $ | 1,548 | (5,405 | ) | (2,043 | ) | 237 | 676 | 70 | (4,917 | ) | |||||||||||||||||
Total assets | $ | 36,343 | 6,369,148 | 704,430 | 362,709 | 316,389 | (623,518 | ) | 7,165,501 | |||||||||||||||||||
F-21
Table of Contents
BankAtlantic | ||||||||||||||||||||||||||||
Bancorp | Woodbridge | Eliminations | ||||||||||||||||||||||||||
For the Six Months Ended | BFC | Other | Land | Other | and | |||||||||||||||||||||||
June 30, 2009 | Activities | BankAtlantic | Operations | Division | Operations | Adjustments | Total | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Sales of real estate | $ | — | — | — | 2,835 | 320 | 39 | 3,194 | ||||||||||||||||||||
Interest and dividend income | 514 | 119,400 | 405 | 93 | 339 | 554 | 121,305 | |||||||||||||||||||||
Other income | 1,917 | 65,538 | (629 | ) | 5,121 | 1,266 | (2,251 | ) | 70,962 | |||||||||||||||||||
Total revenues | 2,431 | 184,938 | (224 | ) | 8,049 | 1,925 | (1,658 | ) | 195,461 | |||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||
Cost of sale of real estate | — | — | — | 1,806 | 173 | 15 | 1,994 | |||||||||||||||||||||
Interest expense, net | — | 37,553 | 8,232 | 2,671 | 3,849 | (212 | ) | 52,093 | ||||||||||||||||||||
Provision for loan losses | — | 79,475 | 8,296 | — | — | — | 87,771 | |||||||||||||||||||||
Other expenses | 5,873 | 132,780 | 3,564 | 11,409 | 9,716 | (2,158 | ) | 161,184 | ||||||||||||||||||||
Total costs and expenses | 5,873 | 249,808 | 20,092 | 15,886 | 13,738 | (2,355 | ) | 303,042 | ||||||||||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | (88 | ) | 103 | 116 | — | 17,050 | 69 | 17,250 | ||||||||||||||||||||
Impairment of unconsolidated affiliates | — | — | — | — | (20,401 | ) | — | (20,401 | ) | |||||||||||||||||||
Impairment of investments | — | — | — | — | (2,396 | ) | — | (2,396 | ) | |||||||||||||||||||
Gain on settlement of investment in Woodbridge’s subsidiary | — | — | — | — | 26,985 | 13,384 | 40,369 | |||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (3,530 | ) | (64,767 | ) | (20,200 | ) | (7,837 | ) | 9,425 | 14,150 | (72,759 | ) | ||||||||||||||||
Benefit for income taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
(Loss) income from continuing operations | (3,530 | ) | (64,767 | ) | (20,200 | ) | (7,837 | ) | 9,425 | 14,150 | (72,759 | ) | ||||||||||||||||
Discontinued operations, less income taxes | 1,258 | — | 4,201 | — | — | (1,258 | ) | 4,201 | ||||||||||||||||||||
Net (loss) income | (2,272 | ) | (64,767 | ) | (15,999 | ) | (7,837 | ) | 9,425 | 12,892 | (68,558 | ) | ||||||||||||||||
Less: Net loss (income) attributable to noncontrolling interests | 12 | 45,367 | 11,207 | 6,181 | (6,960 | ) | (10,561 | ) | 45,246 | |||||||||||||||||||
Net (loss) income attributable to BFC | $ | (2,260 | ) | (19,400 | ) | (4,792 | ) | (1,656 | ) | 2,465 | 2,331 | (23,312 | ) | |||||||||||||||
F-22
Table of Contents
BankAtlantic | ||||||||||||||||||||||||||||
Bancorp | Woodbridge | Eliminations | ||||||||||||||||||||||||||
For the Six Months Ended | BFC | Other | Land | Other | and | |||||||||||||||||||||||
June 30, 2008 | Activities | BankAtlantic | Operations | Division | Operations | Adjustments | Total | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Sales of real estate | $ | — | — | — | 1,865 | 635 | 49 | 2,549 | ||||||||||||||||||||
Interest and dividend income | 762 | 161,439 | 889 | 324 | 1,777 | (146 | ) | 165,045 | ||||||||||||||||||||
Other income | 3,000 | 71,979 | 1,506 | 6,439 | 1,807 | (3,029 | ) | 81,702 | ||||||||||||||||||||
Total revenues | 3,762 | 233,418 | 2,395 | 8,628 | 4,219 | (3,126 | ) | 249,296 | ||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||
Cost of sales of real estate | — | — | — | 1,173 | 587 | 88 | 1,848 | |||||||||||||||||||||
Interest expense, net | — | 63,511 | 10,585 | 1,864 | 4,777 | (1,398 | ) | 79,339 | ||||||||||||||||||||
Provision for loan losses | — | 80,689 | 9,446 | — | — | — | 90,135 | |||||||||||||||||||||
Other expenses | 7,439 | 140,963 | 3,341 | 10,851 | 14,747 | (2,001 | ) | 175,340 | ||||||||||||||||||||
Total costs and expenses | 7,439 | 285,163 | 23,372 | 13,888 | 20,111 | (3,311 | ) | 346,662 | ||||||||||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | (53 | ) | 302 | 1,260 | — | 1,737 | — | 3,246 | ||||||||||||||||||||
Loss from continuing operations before income taxes | (3,730 | ) | (51,443 | ) | (19,717 | ) | (5,260 | ) | (14,155 | ) | 185 | (94,120 | ) | |||||||||||||||
Benefit for income taxes | (7,046 | ) | (20,403 | ) | (6,830 | ) | — | — | — | (34,279 | ) | |||||||||||||||||
(Loss) income from continuing operations | 3,316 | (31,040 | ) | (12,887 | ) | (5,260 | ) | (14,155 | ) | 185 | (59,841 | ) | ||||||||||||||||
Discontinued operations, less income tax | 162 | — | 1,121 | — | — | (264 | ) | 1,019 | ||||||||||||||||||||
Net (loss) income | 3,478 | (31,040 | ) | (11,766 | ) | (5,260 | ) | (14,155 | ) | (79 | ) | (58,822 | ) | |||||||||||||||
Less: Net loss attributable to noncontrolling interests | 63 | 22,257 | 8,437 | 4,691 | 12,623 | (37 | ) | 48,034 | ||||||||||||||||||||
Net (loss) income attributable to BFC | $ | 3,541 | (8,783 | ) | (3,329 | ) | (569 | ) | (1,532 | ) | (116 | ) | (10,788 | ) | ||||||||||||||
6. | Acquisition |
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7. | Discontinued Operations |
8. | Restructuring Charges and Exit Activities |
Employee | ||||||||||||
Termination | ||||||||||||
Benefits | Contract | Total | ||||||||||
Liability | Liability | Liability | ||||||||||
Balance at January 1, 2008 | $ | 102 | 990 | 1,092 | ||||||||
Expenses incurred | 2,095 | 361 | 2,456 | |||||||||
Amounts paid or amortized | (1,105 | ) | (288 | ) | (1,393 | ) | ||||||
Balance at June 30, 2008 | $ | 1,092 | 1,063 | 2,155 | ||||||||
Balance at January 1, 2009 | $ | 171 | 1,462 | 1,633 | ||||||||
Expense incurred | 1,946 | 1,301 | 3,247 | |||||||||
Amounts paid or amortized | (1,693 | ) | (60 | ) | (1,753 | ) | ||||||
Balance at June 30, 2009 | $ | 424 | 2,703 | 3,127 | ||||||||
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Severance | Independent | |||||||||||||||||||
Related and | Contractor | Surety Bond | ||||||||||||||||||
Benefits | Facilities | Agreements | Accrual | Total | ||||||||||||||||
Balance at December 31, 2007 | $ | 1,954 | 1,010 | 1,421 | 1,826 | 6,211 | ||||||||||||||
Restructuring charges (credits) | 2,023 | 140 | (25 | ) | (150 | ) | 1,988 | |||||||||||||
Cash payments | (2,681 | ) | (259 | ) | (412 | ) | (532 | ) | (3,884 | ) | ||||||||||
Balance at June 30, 2008 | $ | 1,296 | 891 | 984 | 1,144 | 4,315 | ||||||||||||||
Balance at December 31, 2008 | $ | 129 | 704 | 597 | 1,144 | 2,574 | ||||||||||||||
Restructuring charges | 82 | — | 39 | — | 121 | |||||||||||||||
Cash payments | (211 | ) | (186 | ) | (388 | ) | (37 | ) | (822 | ) | ||||||||||
Balance at June 30, 2009 | $ | — | 518 | 248 | 1,107 | 1,873 | ||||||||||||||
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9. | Securities Available for Sale |
June 30, 2009 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Government agency securities: | ||||||||||||||||
Mortgage-backed securities | $ | 281,954 | 11,189 | 2 | 293,141 | |||||||||||
Real estate mortgage investment conduits(1) | 134,627 | 3,034 | 70 | 137,591 | ||||||||||||
Total mortgage-backed securities | 416,581 | 14,223 | 72 | 430,732 | ||||||||||||
Investment Securities: | ||||||||||||||||
Other bonds | 250 | — | — | 250 | ||||||||||||
Benihana’s Convertible Preferred Stock | 16,426 | 4,085 | — | 20,511 | ||||||||||||
Equity securities(2) | 2,912 | 4,771 | 5 | 7,678 | ||||||||||||
Total investment securities | 19,588 | 8,856 | 5 | 28,439 | ||||||||||||
Total | $ | 436,169 | 23,079 | 77 | 459,171 | |||||||||||
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December 31, 2008 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||
Mortgage-backed securities | $ | 521,895 | 11,017 | 39 | 532,873 | |||||||||||
Real estate mortgage investment conduits(1) | 165,449 | 1,846 | 944 | 166,351 | ||||||||||||
Total mortgage-backed securities | 687,344 | 12,863 | 983 | 699,224 | ||||||||||||
Investment Securities: | ||||||||||||||||
Other bonds | — | — | — | 250 | ||||||||||||
Benihana’s Convertible Preferred Stock | 16,426 | — | — | 16,426 | ||||||||||||
Equity securities(2) | 6,686 | 112 | — | 6,798 | ||||||||||||
Total investment securities | 23,362 | 112 | — | 23,474 | ||||||||||||
Total | $ | 710,706 | 12,975 | 983 | 722,698 | |||||||||||
(1) | Real estate mortgage investment conduits are pass-through entities that hold residential loans and investors are issued ownership interests in the entities in the form of a bond. The issuers of the securities were government agencies. |
(2) | Equity securities includes Woodbridge’s investment in Office Depot’s common stock with an estimated fair value of approximately $6.5 million and $4.3 million at June 30, 2009 and December 31, 2008, respectively, discussed below. |
For the Three Months | For the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Gross gains on securities sales | $ | 2,070 | 5,663 | 6,510 | 7,439 | |||||||||||
Gross losses on securities sales | $ | — | 2 | — | 4,660 | |||||||||||
Proceeds from sales of securities | $ | 43,277 | 200,504 | 205,706 | 341,589 | |||||||||||
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F-28
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June 30, | ||||
2009 | ||||
Fair value at December 31, 2008 | $ | 4,278 | ||
Other-than-temporary impairment during the three months ended March 31, 2009 | (2,396 | ) | ||
Unrealized holding gain | 4,663 | |||
Fair value at June 30, 2009 | $ | 6,545 | ||
10. | Loans Receivable |
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Real estate loans: | ||||||||
Residential | $ | 1,741,051 | 1,916,562 | |||||
Builder land loans | 76,892 | 84,453 | ||||||
Land acquisition and development | 208,606 | �� | 226,484 | |||||
Land acquisition, development and construction | 43,964 | 60,730 | ||||||
Construction and development | 212,675 | 229,856 | ||||||
Commercial | 732,604 | 713,571 | ||||||
Consumer — home equity | 697,631 | 718,950 | ||||||
Small business | 212,564 | 218,694 | ||||||
Other loans: | ||||||||
Commercial business | 140,651 | 144,554 | ||||||
Small business — non-mortgage | 101,439 | 108,230 | ||||||
Consumer loans | 13,941 | 16,406 | ||||||
Deposit overdrafts | 8,240 | 9,730 | ||||||
Total gross loans | 4,190,258 | 4,448,220 | ||||||
Adjustments: | ||||||||
Premiums, discounts and net deferred fees | 3,029 | 3,221 | ||||||
Allowance for loan losses | (172,220 | ) | (137,257 | ) | ||||
Loans receivable — net | $ | 4,021,067 | 4,314,184 | |||||
Loans held for sale | $ | 7,694 | 3,461 | |||||
F-29
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June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Construction and development | $ | 56,374 | 124,332 | |||||
Commercial | 34,716 | 38,930 | ||||||
Total undisbursed loans in process | $ | 91,090 | 163,262 | |||||
For the Three | For the Six | |||||||||||||||
Months Ended | Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Balance, beginning of period | $ | 158,397 | 89,836 | 137,257 | 94,020 | |||||||||||
Loans charged-off | (30,332 | ) | (31,401 | ) | (54,261 | ) | (78,648 | ) | ||||||||
Recoveries of loans previously charged-off | 661 | 444 | 1,453 | 619 | ||||||||||||
Net (charge-offs) | (29,671 | ) | (30,957 | ) | (52,808 | ) | (78,029 | ) | ||||||||
Provision for loan losses | 43,494 | 47,247 | 87,771 | 90,135 | ||||||||||||
Balance, end of period | $ | 172,220 | 106,126 | 172,220 | 106,126 | |||||||||||
June 30, 2009 | December 31, 2008 | |||||||||||||||
Gross | Gross | |||||||||||||||
Recorded | Specific | Recorded | Specific | |||||||||||||
Investment | Allowances | Investment | Allowances | |||||||||||||
Impaired loans with specific valuation allowances | $ | 246,240 | 58,693 | 174,710 | 41,192 | |||||||||||
Impaired loans without specific valuation allowances | 260,435 | — | 138,548 | — | ||||||||||||
Total | $ | 506,675 | 58,693 | 313,258 | 41,192 | |||||||||||
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Table of Contents
For the Three | For the Six | |||||||
Months Ended | Months Ended | |||||||
June 30, 2009 | June 30, 2009 | |||||||
Contracted interest income | $ | 6,408 | 11,505 | |||||
Interest income recognized | 734 | 1,428 | ||||||
Foregone interest income | $ | 5,674 | 10,077 | |||||
11. | Real Estate Held for Development and Sale |
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Land and land development costs | $ | 221,746 | 221,684 | |||||
Construction costs | 442 | 463 | ||||||
Capitalized interest and other costs | 40,727 | 38,539 | ||||||
Land held for sale | 8,043 | 8,077 | ||||||
Total | $ | 270,958 | 268,763 | |||||
12. | Investments in Unconsolidated Affiliates |
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Table of Contents
Three Months Ended | Six Months Ended | |||||||
June 30, 2009 | June 30, 2009 | |||||||
Pro rata share of Bluegreen’s net income | $ | 2,076 | 3,158 | |||||
Amortization of basis difference | 8,638 | 13,892 | ||||||
Total earnings from Bluegreen Corporation | $ | 10,714 | 17,050 | |||||
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Pro rata share of investment in Bluegreen Corporation | $ | 35,089 | 115,072 | |||||
Purchase accounting adjustment (from the step acquisition) | — | (4,700 | ) | |||||
Amortization of basis difference | 13,892 | 13,850 | ||||||
Less: Impairment of investment in Bluegreen Corporation | (20,401 | ) | (94,433 | ) | ||||
Investment in Bluegreen Corporation | $ | 28,580 | 29,789 | |||||
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Table of Contents
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Total assets | $ | 1,196,265 | 1,193,507 | |||||
Total liabilities | $ | 764,147 | 781,522 | |||||
Total Bluegreen shareholders’ equity | 399,864 | 382,467 | ||||||
Noncontrolling interest | 32,254 | 29,518 | ||||||
Total equity | 432,118 | 411,985 | ||||||
Total liabilities and shareholders’ equity | $ | 1,196,265 | 1,193,507 | |||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues and other income | $ | 92,031 | 151,603 | 170,520 | 290,955 | |||||||||||
Cost and other expenses | 86,321 | 144,726 | 157,775 | 280,989 | ||||||||||||
Income before noncontrolling interests and provision for income taxes | 5,710 | 6,877 | 12,745 | 9,966 | ||||||||||||
Benefit (provision) for income taxes | 2,654 | (2,112 | ) | 358 | (2,967 | ) | ||||||||||
Net income | 8,364 | 4,765 | 13,103 | 6,999 | ||||||||||||
Net income attributable to noncontrolling | ||||||||||||||||
Interests | 1,550 | (1,320 | ) | 2,736 | (2,158 | ) | ||||||||||
Net income attributable to Bluegreen | $ | 6,814 | 3,445 | 10,367 | 4,841 | |||||||||||
13. | Goodwill |
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Table of Contents
14. | Debt and Development Bonds Payable |
June 30, | December 31, | |||||||||
2009 | 2008 | Maturity Date | ||||||||
5.50% Commercial development mortgage note payable(a) | $ | 58,262 | 58,262 | June 2012 | ||||||
2.06% Commercial development mortgage note payable | 4,696 | 4,724 | June 2010 | |||||||
2.41% Commercial development mortgage note payable | 9,041 | 8,919 | July 2010 | |||||||
5.00% Land development mortgage note payable | 25,000 | 25,000 | February 2012 | |||||||
3.72% Land acquisition mortgage note payable | 22,824 | 23,184 | October 2019 | |||||||
6.88% Land acquisition mortgage note payable | 4,808 | 4,928 | October 2019 | |||||||
3.06% Land acquisition mortgage note payable(b) | 86,392 | 86,922 | June 2011 | |||||||
3.25% Borrowing base facility | 37,174 | 37,458 | March 2011 | |||||||
5.47% Other mortgage note payable | 11,712 | 11,831 | April 2015 | |||||||
6.00% — 6.13% Development bonds | 3,281 | 3,291 | May 2035 | |||||||
6.50% — 9.15% Other borrowings | 274 | 381 | August 2009 — June 2013 | |||||||
Total | $ | 263,464 | 264,900 | |||||||
(a) | Core has a credit agreement with a financial institution which provides for borrowings of up to $64.3 million. The credit agreement had an original maturity date of June 26, 2009 and a variable interest rate of30-day LIBOR plus 170 basis points or Prime Rate. During June 2009, the loan agreement was modified to extend the maturity date to June 2012. The loan, as modified, bears interest at a fixed interest rate of 5.5%. The terms of the modification also required Core to pledge approximately 10 acres of additional collateral. The new terms of the loan also include a debt service coverage ratio covenant of 1.10:1 and the elimination of a loan to value covenant. As of June 30, 2009, the loan had an outstanding balance of $58.3 million. |
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Table of Contents
(b) | In January of 2009, Core was advised by one of its lenders that the lender had received an external appraisal on the land that serves as collateral for a development mortgage note payable, which had an outstanding balance of $86.4 million at June 30, 2009. The appraised value would suggest the potential for a re-margining payment to bring the note payable back in line with the minimumloan-to-value requirement. The lender is conducting its internal review procedures, including the determination of the appraised value. As of the date of this filing, Core is in discussions with the lender to restructure the loan which may eliminate any re-margining requirements; however, there is no assurance that these discussions will be successful or that re-margining payments will not otherwise be required in the future. |
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15. | Interest Expense |
For the Three | For the Six | |||||||||||||||
Months Ended, | Months Ended, | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Interest expense | $ | 25,212 | 38,415 | 54,378 | 85,589 | |||||||||||
Interest capitalized | (651 | ) | (3,062 | ) | (2,285 | ) | (6,250 | ) | ||||||||
Interest expense, net | $ | 24,561 | 35,353 | 52,093 | 79,339 | |||||||||||
16. | Woodbridge Incentive Compensation Program |
17. | Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk |
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
BFC Activities | ||||||||
Guaranty agreements | $ | 36,000 | 38,000 | |||||
Financial Services | ||||||||
Commitments to sell fixed rate residential loans | 45,897 | 25,304 | ||||||
Commitments to originate loans held for sale | 38,202 | 21,843 | ||||||
Commitments to originate loans held to maturity | 50,163 | 16,553 | ||||||
Commitments to extend credit, including the undisbursed portion of loans in process | 428,628 | 597,739 | ||||||
Standby letters of credit | 16,892 | 20,558 | ||||||
Commercial lines of credit | 68,121 | 66,954 | ||||||
Real Estate Development | ||||||||
Continued Agreement of Indemnity- surety bonds | 17,100 | 19,900 |
F-36
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F-37
Table of Contents
F-38
Table of Contents
18. | Redeemable 5% Cumulative Preferred Stock |
19. | Certain Relationships and Related Party Transactions |
F-39
Table of Contents
BankAtlantic | ||||||||||||||||||||
BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the Three Months Ended June 30, 2009 | ||||||||||||||||||||
Shared service income (expense) | (a | ) | $ | 849 | (458 | ) | (255 | ) | (136 | ) | ||||||||||
Facilities cost | (a | ) | $ | (54 | ) | 78 | (38 | ) | 14 | |||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | — | (9 | ) | 9 | — | ||||||||||||
For the Three Months Ended June 30, 2008 | ||||||||||||||||||||
Shared service income (expense) | (a | ) | $ | 891 | (452 | ) | (321 | ) | (118 | ) | ||||||||||
Facilities cost | (a | ) | $ | (86 | ) | 127 | (62 | ) | 21 | |||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 2 | (11 | ) | 9 | — | ||||||||||||
For the Six Months Ended June 30, 2009 | ||||||||||||||||||||
Shared service income (expense) | (a | ) | $ | 1,710 | (906 | ) | (531 | ) | (273 | ) | ||||||||||
Facilities cost(a) | $ | (111 | ) | 156 | (76 | ) | 31 | |||||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase(b) | $ | — | (28 | ) | 28 | — | ||||||||||||||
For the Six months Ended June 30, 2008 | ||||||||||||||||||||
Shared service income (expense) | (a | ) | $ | 1,389 | (716 | ) | (467 | ) | (206 | ) | ||||||||||
Facilities cost | (a | ) | $ | (149 | ) | 177 | (62 | ) | 34 | |||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 7 | (37 | ) | 30 | — | ||||||||||||
At June 30, 2009 | ||||||||||||||||||||
Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 225 | (6,307 | ) | 6,082 | — | ||||||||||||
Shared service receivable (payable) | (a | ) | $ | 367 | (157 | ) | (86 | ) | (124 | ) | ||||||||||
At December 31, 2008 | ||||||||||||||||||||
Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 263 | (4,696 | ) | 4,433 | — | ||||||||||||
Shared service receivable (payable) | (a | ) | $ | 398 | (175 | ) | (115 | ) | (108 | ) |
(a) | Pursuant to the terms of shared service agreements between BFC, BankAtlantic Bancorp and Woodbridge, subsidiaries of BFC provide shared service operations in the areas of human resources, risk management, investor relations, executive office administration and other services to BankAtlantic Bancorp and Woodbridge. Additionally, BFC provides certain risk management and administrative services to Bluegreen. The costs of shared services are allocated based upon the usage of the respective services. Also, as part of the shared service arrangement, BFC pays BankAtlantic Bancorp and Bluegreen for office facilities costs relating to BFC and its shared service operations. |
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Table of Contents
In May 2009, BFC and BFC Shared Service Corporation (“BFC Shared Service”), a wholly-owned subsidiary of BFC, amended the terms of the office lease agreements with BankAtlantic under which BFC and BFC Shared Service agreed to pay BankAtlantic an annual rent of approximately $304,000 for office space in BankAtlantic’s corporate headquarters. In May 2009, BFC also amended the terms of the officesub-lease agreement with Woodbridge for office space in BankAtlantic’s corporate headquarters pursuant to which Woodbridge agreed to pay BFC an annual rent of approximately $141,000. All above mentioned lease agreements were originally entered into in May 2008. |
(b) | BFC and Woodbridge entered into securities sold under agreements to repurchase transactions with BankAtlantic in the aggregate of approximately $6.3 million and $4.7 million at June 30, 2009 and December 31, 2008, respectively. These transactions have similar terms as BankAtlantic’s agreements with unaffiliated parties. As of June 30, 2009, BankAtlantic facilitated the placement of $51.8 million of certificates of deposit insured by the Federal Deposit Insurance Corporation (the “FDIC”) with other insured depository institutions on Woodbridge’s behalf through the Certificate of Deposit Account Registry Service (“CDARS”) program. The CDARS program facilitates the placement of funds into certificates of deposit issued by other financial institutions in increments of less than the standard FDIC insurance maximum to insure that both principal and interest are eligible for full FDIC insurance coverage. At June 30, 2009, Woodbridge’s placements under the CDARS program with maturity dates of less than 3 months totaled $1.9 million, while placements with maturity dates or more than 3 months totaled $49.9 million. |
BankAtlantic | Weighted | |||||||
Bancorp Class A | Average | |||||||
Common Stock | Price | |||||||
Options outstanding | 53,789 | $ | 48.46 | |||||
Options non-vested | 13,610 | $ | 92.85 |
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Table of Contents
20. | Loss Per Common Share |
For the Three | For the Six | |||||||||||||||
Months Ended | Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Basic (loss) earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Loss from continuing operations | $ | (39,526 | ) | (26,743 | ) | (72,759 | ) | (59,841 | ) | |||||||
Less: Net Loss from continuing operations attributable to noncontrolling interests | 26,617 | 21,826 | 48,189 | 48,891 | ||||||||||||
Loss from continuing operations attributable to BFC | (12,909 | ) | (4,917 | ) | (24,570 | ) | (10,950 | ) | ||||||||
Preferred stock dividends | (187 | ) | (187 | ) | (375 | ) | (375 | ) | ||||||||
Loss allocable to common stock | (13,096 | ) | (5,104 | ) | (24,945 | ) | (11,325 | ) | ||||||||
Discontinued operations, net of taxes | — | — | 4,201 | 1,019 | ||||||||||||
Less: Noncontrolling interests discontinued operations | — | — | (2,943 | ) | (857 | ) | ||||||||||
Discontinued operations, net of taxes attributable to BFC | — | — | 1,258 | 162 | ||||||||||||
Net loss allocable to common shareholders | $ | (13,096 | ) | (5,104 | ) | (23,687 | ) | (11,163 | ) | |||||||
Denominator: | ||||||||||||||||
Basic weighted average number of common shares outstanding | 45,126 | 45,112 | 45,120 | 45,108 | ||||||||||||
Basic (loss) earnings per common share | ||||||||||||||||
Loss per share from continuing operations | $ | (0.29 | ) | (0.11 | ) | (0.55 | ) | (0.25 | ) | |||||||
Earnings per share from discontinued operations | — | — | 0.03 | — | ||||||||||||
Basic loss per share | $ | (0.29 | ) | (0.11 | ) | (0.52 | ) | (0.25 | ) | |||||||
F-42
Table of Contents
For the Three | For the Six | |||||||||||||||
Months Ended | Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Diluted (loss) earnings per common share: | ||||||||||||||||
Loss allocable to common stock | $ | (13,096 | ) | (5,104 | ) | (24,945 | ) | (11,325 | ) | |||||||
Effect of securities issuable by subsidiaries | — | — | — | — | ||||||||||||
Loss allocable to common stock after assumed dilution | $ | (13,096 | ) | (5,104 | ) | (24,945 | ) | (11,325 | ) | |||||||
Discontinued operations, net of taxes attributable to BFC | $ | — | — | 1,258 | 162 | |||||||||||
Effect of securities issuable by subsidiaries | — | — | — | — | ||||||||||||
$ | — | — | 1,258 | 162 | ||||||||||||
Net loss allocable to common shareholders | $ | (13,096 | ) | (5,104 | ) | (23,687 | ) | (11,163 | ) | |||||||
Denominator: | ||||||||||||||||
Basic weighted average number of common shares outstanding | 45,126 | 45,112 | 45,120 | 45,108 | ||||||||||||
Effect of dilutive stock options and unvested restricted stock | — | — | — | — | ||||||||||||
Diluted weighted average number of common shares outstanding | 45,126 | 45,112 | 45,120 | 45,108 | ||||||||||||
Diluted (loss) earnings per common share: | ||||||||||||||||
Loss per share from continuing operations | $ | (0.29 | ) | (0.11 | ) | (0.55 | ) | (0.25 | ) | |||||||
Earnings (loss) per share from discontinued operations | — | — | 0.03 | — | ||||||||||||
Diluted loss per share | $ | (0.29 | ) | (0.11 | ) | (0.52 | ) | (0.25 | ) | |||||||
21. | Parent Company Financial Information |
F-43
Table of Contents
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 5,921 | 9,218 | |||||
Investment securities | 20,598 | 16,523 | ||||||
Investment in venture partnerships | 346 | 361 | ||||||
Investment in BankAtlantic Bancorp, Inc. | 43,742 | 66,326 | ||||||
Investment in Woodbridge Holdings Corporation | 41,120 | 35,575 | ||||||
Investment in and advances to wholly owned subsidiaries | 2,241 | 2,323 | ||||||
Other assets | 1,252 | 835 | ||||||
Total assets | $ | 115,220 | 131,161 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Advances from and negative basis in wholly owned subsidiaries | $ | 798 | 789 | |||||
Other liabilities | 6,866 | 6,476 | ||||||
Total liabilities | 7,664 | 7,265 | ||||||
Redeemable 5% Cumulative Preferred Stock | 11,029 | 11,029 | ||||||
Shareholders’ equity | 96,527 | 112,867 | ||||||
Total liabilities and shareholders’ equity | $ | 115,220 | 131,161 | |||||
For the Three | For the Six | |||||||||||||||
Months Ended | Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 333 | 615 | 616 | 1,137 | |||||||||||
Expenses | 2,012 | 2,169 | 4,035 | 4,813 | ||||||||||||
(Loss) before earnings (loss) from subsidiaries | (1,679 | ) | (1,554 | ) | (3,419 | ) | (3,676 | ) | ||||||||
Equity in loss from BankAtlantic Bancorp | (11,464 | ) | (4,557 | ) | (24,823 | ) | (10,342 | ) | ||||||||
Equity in earnings (loss) from Woodbridge | 226 | (1,783 | ) | 3,771 | (3,861 | ) | ||||||||||
Equity in earnings (loss) from other subsidiaries | 8 | (203 | ) | (99 | ) | (117 | ) | |||||||||
Loss from continuing operations before income taxes | (12,909 | ) | (8,097 | ) | (24,570 | ) | (17,996 | ) | ||||||||
Benefit from income taxes | — | 3,180 | — | 7,046 | ||||||||||||
Loss from continuing operations | (12,909 | ) | (4,917 | ) | (24,570 | ) | (10,950 | ) | ||||||||
Discontinued operations, net of income taxes | — | — | 1,258 | 162 | ||||||||||||
Net loss attributable to BFC | (12,909 | ) | (4,917 | ) | (23,312 | ) | (10,788 | ) | ||||||||
5% Preferred stock dividends | (187 | ) | (187 | ) | (375 | ) | (375 | ) | ||||||||
Net loss allocable to common stock | $ | (13,096 | ) | (5,104 | ) | (23,687 | ) | (11,163 | ) | |||||||
F-44
Table of Contents
For the Six | ||||||||
Months Ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
Operating Activities: | ||||||||
Net cash used in operating activities | $ | (3,006 | ) | (3,754 | ) | |||
Investing Activities: | ||||||||
Distribution from partnership | 84 | 533 | ||||||
Net cash provided by in investing activities | 84 | 533 | ||||||
Financing Activities: | ||||||||
Preferred stock dividends paid | (375 | ) | (375 | ) | ||||
Net cash used in financing activities | (375 | ) | (375 | ) | ||||
Decrease in cash and cash equivalents | (3,297 | ) | (3,596 | ) | ||||
Cash at beginning of period | 9,218 | 17,999 | ||||||
Cash at end of period | $ | 5,921 | 14,403 | |||||
Supplementary disclosure of non-cash investing and financing activities | ||||||||
Net increase (decrease) in shareholders’ equity from the effect of subsidiaries’ capital transactions, net of income taxes | $ | 732 | 329 | |||||
Increase (decrease) increase in accumulated other comprehensive income, net of taxes | 5,696 | (1,651 | ) | |||||
Net increase in shareholders’ equity resulting from the cumulative impact of accounting changes recognized by Bluegreen on retained interests in notes receivable | 485 | — |
22. | New Accounting Pronouncements |
F-45
Table of Contents
23. | Litigation |
24. | Bankruptcy of Levitt and Sons |
F-46
Table of Contents
25. | Subsequent Events |
F-47
Table of Contents
F-48
Table of Contents
F-49
Table of Contents
F-50
Table of Contents
December 31, | ||||||||
2008 | 2007 | |||||||
As Adjusted | As Adjusted | |||||||
(In thousands, except share data) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 247,760 | 326,524 | |||||
Federal funds sold and other short-term investments | 31,177 | 5,631 | ||||||
Restricted cash | 21,288 | 2,207 | ||||||
Securities available for sale and other financial instruments (at fair value) | 722,698 | 926,307 | ||||||
Financial instruments accounted for at fair value | — | 10,661 | ||||||
Investment securities at cost or amortized costs (fair value: $12,475 and $65,244) | 12,008 | 60,173 | ||||||
Tax certificates, net of allowance of $6,064 in 2008 and $3,289 in 2007 | 213,534 | 188,401 | ||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 54,607 | 74,003 | ||||||
Residential loans held for sale at lower of cost or fair value | 3,461 | 4,087 | ||||||
Loans receivable, net of allowance for loan losses of $137,257 in 2008 and $94,020 in 2007 | 4,314,184 | 4,524,451 | ||||||
Accrued interest receivable | 41,817 | 46,271 | ||||||
Real estate held for development and sale | 268,763 | 270,229 | ||||||
Real estate owned | 19,045 | 17,216 | ||||||
Investments in unconsolidated affiliates | 41,386 | 128,321 | ||||||
Properties and equipment, net | 315,347 | 360,889 | ||||||
Goodwill | 20,782 | 70,490 | ||||||
Other intangible assets, net | 24,204 | 5,396 | ||||||
Deferred tax asset, net | — | 16,330 | ||||||
Other assets | 43,521 | 76,846 | ||||||
Total assets | $ | 6,395,582 | 7,114,433 | |||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Interest bearing | $ | 3,184,677 | 3,129,194 | |||||
Non-interest bearing | 741,691 | 824,211 | ||||||
Total deposits | 3,926,368 | 3,953,405 | ||||||
Advances from FHLB | 967,491 | 1,397,044 | ||||||
Federal funds purchased and other short term borrowings | 238,339 | 108,975 | ||||||
Securities sold under agreements to repurchase | 41,387 | 50,930 | ||||||
Subordinated debentures, mortgage notes payable and mortgage-backed bonds | 287,772 | 295,421 | ||||||
Junior subordinated debentures | 376,104 | 379,223 | ||||||
Loss in excess of investment in Woodbridge’s subsidiary | 52,887 | 55,214 | ||||||
Other liabilities | 118,784 | 131,234 | ||||||
Total liabilities | 6,009,132 | 6,371,446 | ||||||
Redeemable 5% Cumulative Preferred Stock — $.01 par value; authorized 15,000 shares; issued and outstanding 15,000 shares in 2008 and 0 in 2007, with a redemption value of $1,000 per share (See Note 34) | 11,029 | — | ||||||
F-51
Table of Contents
December 31, | ||||||||
2008 | 2007 | |||||||
As Adjusted | As Adjusted | |||||||
(In thousands, except share data) | ||||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Preferred stock of $.01 par value; authorized 10,000,000 shares; 5% Cumulative Convertible Preferred Stock (5% Preferred Stock) authorized 15,000 shares; issued and outstanding 0 shares in 2008 and 15,000 shares in 2007 | — | — | ||||||
Class A common stock of $.01 par value, authorized 70,000,000 shares; issued and outstanding 38,254,389 in 2008 and 38,232,932 in 2007 | 382 | 382 | ||||||
Class B common stock of $.01 par value, authorized 20,000,000 shares; issued and outstanding 6,875,104 in 2008 and 6,876,081 in 2007 | 69 | 69 | ||||||
Additional paid-in capital | 123,562 | 131,189 | ||||||
(Accumulated deficit) retained earnings | (8,848 | ) | 50,801 | |||||
Accumulated other comprehensive (loss) income | (2,298 | ) | 1,596 | |||||
Total BFC Financial Corporation (“BFC”) shareholders’ equity | 112,867 | 184,037 | ||||||
Noncontrolling interest | 262,554 | 558,950 | ||||||
Total equity | 375,421 | 742,987 | ||||||
Total liabilities and equity | $ | 6,395,582 | 7,114,433 | |||||
F-52
Table of Contents
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
As Adjusted | As Adjusted | As Adjusted | ||||||||||
(In thousands, except per share data) | ||||||||||||
Revenues | ||||||||||||
BFC Activities: | ||||||||||||
Interest and dividend income | $ | 1,368 | 2,335 | 2,249 | ||||||||
Securities activities, net | 898 | 1,295 | — | |||||||||
Other income | 2,142 | 2,479 | 1,433 | |||||||||
4,408 | 6,109 | 3,682 | ||||||||||
Financial Services: | ||||||||||||
Interest and dividend income | 314,538 | 371,633 | 367,177 | |||||||||
Service charges on deposits | 93,905 | 102,639 | 90,472 | |||||||||
Other service charges and fees | 28,959 | 28,950 | 27,542 | |||||||||
Securities activities, net | 2,039 | 8,412 | 9,813 | |||||||||
Other income | 10,130 | 9,159 | 12,742 | |||||||||
449,571 | 520,793 | 507,746 | ||||||||||
�� | ||||||||||||
Real Estate Development: | ||||||||||||
Sales of real estate | 13,837 | 410,115 | 566,086 | |||||||||
Interest and dividend income | 3,192 | 3,936 | 2,474 | |||||||||
Securities activities, net | 1,178 | — | — | |||||||||
Other income | 15,284 | 17,614 | 14,592 | |||||||||
33,491 | 431,665 | 583,152 | ||||||||||
Total revenues | 487,470 | 958,567 | 1,094,580 | |||||||||
Costs and Expenses | ||||||||||||
BFC Activities: | ||||||||||||
Employee compensation and benefits | 8,793 | 10,932 | 9,407 | |||||||||
Other expenses | 3,346 | 4,083 | 2,963 | |||||||||
12,139 | 15,015 | 12,370 | ||||||||||
Financial Services: | ||||||||||||
Interest expense, net of interest capitalized | 140,502 | 192,672 | 166,578 | |||||||||
Provision for (recovery of) loan losses | 159,801 | 70,842 | 8,574 | |||||||||
Employee compensation and benefits | 128,897 | 151,178 | 150,804 | |||||||||
Occupancy and equipment | 64,782 | 65,851 | 57,308 | |||||||||
Advertising and promotion | 16,335 | 20,002 | 35,067 | |||||||||
Cost associated with debt redemption | 1,238 | — | 1,457 | |||||||||
Provision for tax certificates | 7,286 | 300 | 300 | |||||||||
Restructuring charges and exit activities | 7,395 | 8,351 | — | |||||||||
Impairment of goodwill | 46,564 | — | — | |||||||||
Impairment of real estate held for sale | 1,169 | 5,240 | — | |||||||||
Impairment of real estate owned | 1,465 | 7,299 | 9 | |||||||||
Other expenses | 59,536 | 57,723 | 54,214 | |||||||||
634,970 | 579,458 | 474,311 | ||||||||||
F-53
Table of Contents
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
As Adjusted | As Adjusted | As Adjusted | ||||||||||
(In thousands, except per share data) | ||||||||||||
Real Estate Development: | ||||||||||||
Cost of sales of real estate | 12,838 | 573,241 | 482,961 | |||||||||
Interest expense, net of interest capitalized | 10,667 | 3,807 | — | |||||||||
Selling, general and administrative expenses | 49,246 | 116,918 | 120,017 | |||||||||
Other expenses | — | 3,929 | 3,677 | |||||||||
72,751 | 697,895 | 606,655 | ||||||||||
Total costs and expenses | 719,860 | 1,292,368 | 1,093,336 | |||||||||
Equity in earnings from unconsolidated affiliates | 15,064 | 12,724 | 10,935 | |||||||||
Impairment of unconsolidated affiliates | (96,579 | ) | — | — | ||||||||
Impairment of investments | (15,548 | ) | — | — | ||||||||
(Loss) income from continuing operations before income taxes | (329,453 | ) | (321,077 | ) | 12,179 | |||||||
Provision (benefit) for income taxes | 15,763 | (69,012 | ) | (530 | ) | |||||||
(Loss) income from continuing operations | (345,216 | ) | (252,065 | ) | 12,709 | |||||||
Discontinued operations, less income tax provision (benefit) of $0 in 2008, $(3,471) in 2007 and $(8,957) in 2006 | 16,605 | 7,160 | (10,535 | ) | ||||||||
Extraordinary gain, less income tax of $0 in 2008 and $1,509 in 2007 | 9,145 | 2,403 | — | |||||||||
Net (loss) income | (319,466 | ) | (242,502 | ) | 2,174 | |||||||
Less: Net (loss) income attributable to noncontrolling interest | (260,567 | ) | (212,043 | ) | 4,395 | |||||||
Net loss attributable to BFC | (58,899 | ) | (30,459 | ) | (2,221 | ) | ||||||
Preferred stock dividends | (750 | ) | (750 | ) | (750 | ) | ||||||
Net loss allocable to common stock | $ | (59,649 | ) | (31,209 | ) | (2,971 | ) | |||||
(Loss) earnings per common share attributable to BFC (See Note 33): | ||||||||||||
Basic loss per share from continuing operations | $ | (1.62 | ) | (0.90 | ) | (0.04 | ) | |||||
Basic earnings (loss) per share from discontinued operations | 0.10 | 0.03 | (0.05 | ) | ||||||||
Basic earnings per share from extraordinary gain | 0.20 | 0.06 | — | |||||||||
Basic loss per share | $ | (1.32 | ) | (0.81 | ) | (0.09 | ) | |||||
Diluted loss per share from continuing operations | $ | (1.62 | ) | (0.90 | ) | (0.05 | ) | |||||
Diluted earnings (loss) per share from discontinued operations | 0.10 | 0.03 | (0.05 | ) | ||||||||
Diluted earnings per share from extraordinary gain | 0.20 | 0.06 | — | |||||||||
Diluted loss per share | $ | (1.32 | ) | (0.81 | ) | (0.10 | ) | |||||
Basic weighted average number of common shares outstanding | 45,097 | 38,778 | 33,249 | |||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 45,097 | 38,778 | 33,249 |
F-54
Table of Contents
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
As Adjusted | As Adjusted | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Net (loss) income | $ | (319,466 | ) | (242,502 | ) | 2,174 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized gains (loss) on securities available for sale | (14,576 | ) | 17,754 | 15,763 | ||||||||
(Benefit) provision for income taxes | (6,647 | ) | 7,599 | 6,225 | ||||||||
Unrealized gains (loss) on securities available for sale, net of tax | (7,929 | ) | 10,155 | 9,538 | ||||||||
Unfunded pension liability | (13,911 | ) | 702 | 2,989 | ||||||||
Provision for income taxes | 2,112 | 310 | 1,528 | |||||||||
Unfunded pension liability, net of tax | (16,023 | ) | 392 | 1,461 | ||||||||
Unrealized (losses) gains associated with investment in unconsolidated affiliates | (2,021 | ) | (771 | ) | 1,263 | |||||||
(Benefit) provision for income taxes | (184 | ) | (340 | ) | 537 | |||||||
Unrealized (losses) gains associated with investment in unconsolidated affiliates, net of tax | (1,837 | ) | (431 | ) | 726 | |||||||
Reclassification adjustments: | ||||||||||||
Realized net periodic pension income (costs) | 248 | 239 | (366 | ) | ||||||||
Provision (benefit) for income taxes | — | 105 | (187 | ) | ||||||||
Realized net periodic pension income (costs), net of tax | 248 | 134 | (179 | ) | ||||||||
Realized (gains) loss reclassified into net loss | 10,502 | (8,814 | ) | (9,809 | ) | |||||||
Benefit for Income taxes | — | (3,710 | ) | (3,877 | ) | |||||||
Net realized (gains) loss reclassified into net loss, net of tax | 10,502 | (5,104 | ) | (5,932 | ) | |||||||
Other comprehensive (loss) income, net of tax | (15,039 | ) | 5,146 | 5,614 | ||||||||
Comprehensive (loss) income | (334,505 | ) | (237,356 | ) | 7,788 | |||||||
Less: Comprehensive (loss) income attributable to noncontrolling interest | (271,712 | ) | (207,042 | ) | 9,083 | |||||||
Total comprehensive loss attributable to BFC | $ | (62,793 | ) | (30,314 | ) | (1,295 | ) | |||||
F-55
Table of Contents
Unearned | Accumulated | |||||||||||||||||||||||||||||||||||||||||||
Compen- | Other | |||||||||||||||||||||||||||||||||||||||||||
Shares of Common | sation | Accumulated | Compre- | Total | Non- | Total | ||||||||||||||||||||||||||||||||||||||
Stock | Class A | Class B | Additional | Restricted | Deficit | hensive | BFC | controlling | Equity | |||||||||||||||||||||||||||||||||||
Outstanding | Common | Common | Paid-in | Stock | Retained | (Loss) | Shareholders’ | Interest in | As | |||||||||||||||||||||||||||||||||||
Class A | Class B | Stock | Stock | Capital | Grants | Earnings | Income | Equity | Subsidiaries | Adjusted | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2005 | 29,950 | 4,285 | $ | 278 | $ | 41 | $ | 97,223 | $ | (100 | ) | $ | 85,113 | $ | 525 | $ | 183,080 | $ | 696,522 | $ | 879,602 | |||||||||||||||||||||||
Cumulative effect adjustment upon adoption of Staff Accounting Bulletin No. 108 (“SAB No. 108”) | — | — | — | — | — | (253 | ) | — | (253 | ) | (253 | ) | ||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | — | — | (2,221 | ) | — | (2,221 | ) | 4,395 | 2,174 | ||||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | — | — | 926 | 926 | 4,688 | 5,614 | ||||||||||||||||||||||||||||||||||
Issuance of Common Stock, upon exercise of stock options | 30 | 3,929 | 1 | 39 | 9,076 | — | — | 9,116 | 9,116 | |||||||||||||||||||||||||||||||||||
Retirement of Common Stock relating to exercise of stock options | (1,279 | ) | (1,068 | ) | (13 | ) | (11 | ) | (13,246 | ) | — | — | (13,270 | ) | (13,270 | ) | ||||||||||||||||||||||||||||
Net effect of subsidiaries’ capital transactions, net of taxes | — | — | — | — | (16 | ) | — | — | (16 | ) | (16 | ) | ||||||||||||||||||||||||||||||||
Noncontrolling interests net effect of subsidiaries’ capital transactions | — | (7,282 | ) | (7,282 | ) | |||||||||||||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | (750 | ) | — | (750 | ) | (750 | ) | ||||||||||||||||||||||||||||||||
Share-based compensation related to stock options and restricted stock | — | — | — | — | 973 | — | — | 973 | 973 | |||||||||||||||||||||||||||||||||||
Reversal of unamortized stock compensation related to restricted stock upon adoption of FAS 123 ( R) | — | — | — | — | (100 | ) | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||
Transfer of shares of Common Stock | 55 | (55 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2006 | 28,756 | 7,091 | 266 | 69 | 93,910 | — | 81,889 | 1,451 | 177,585 | 698,323 | 875,908 | |||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of FASB Interpretation No. 48 | — | — | — | — | — | 121 | — | 121 | 121 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (30,459 | ) | — | (30,459 | ) | (212,043 | ) | (242,502 | ) | ||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | — | — | 145 | 145 | 5,001 | 5,146 | ||||||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | 11,500 | — | 115 | — | 36,006 | — | — | 36,121 | 36,121 | |||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options and restricted stock | 152 | — | 1 | — | 187 | — | — | 188 | 188 | |||||||||||||||||||||||||||||||||||
Cancelled shares of common stock upon merger. (See notes 32 and 33) | (2,163 | ) | (227 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net effect of subsidiaries’ capital transactions, net of taxes | — | — | — | — | (101 | ) | — | — | (101 | ) | (101 | ) | ||||||||||||||||||||||||||||||||
Noncontrolling interests net effect of subsidiaries’ capital transactions | — | 67,669 | 67,669 | |||||||||||||||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | (750 | ) | — | (750 | ) | (750 | ) | ||||||||||||||||||||||||||||||||
Share-based compensation related to stock options and restricted stock | — | — | — | — | 1,187 | — | — | 1,187 | 1,187 | |||||||||||||||||||||||||||||||||||
Transfer of shares of Common Stock | (12 | ) | 12 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2007 | 38,233 | 6,876 | 382 | 69 | 131,189 | — | 50,801 | 1,596 | 184,037 | 558,950 | 742,987 | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (58,899 | ) | — | (58,899 | ) | (260,567 | ) | (319,466 | ) | ||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | — | — | (3,894 | ) | (3,894 | ) | (11,145 | ) | (15,039 | ) | ||||||||||||||||||||||||||||||
Issuance of restricted Class A Common Stock | 120 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Transfer of shares of Common Stock | 1 | (1 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Purchase and retirement of Class A Common Stock | (100 | ) | — | — | — | (54 | ) | — | — | (54 | ) | (54 | ) | |||||||||||||||||||||||||||||||
Net effect of subsidiaries’ capital transactions, net of taxes | — | — | — | — | 2,398 | — | — | 2,398 | — | 2,398 | ||||||||||||||||||||||||||||||||||
Noncontrolling interests net effect of subsidiaries’ capital transactions | — | (24,684 | ) | (24,684 | ) | |||||||||||||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | (750 | ) | — | (750 | ) | — | (750 | ) | |||||||||||||||||||||||||||||||
Re-classification of the 5% Preferred Stock to Redeemable Preferred stock (see Note 34) | — | — | — | — | (11,029 | ) | — | — | (11,029 | ) | — | (11,029 | ) | |||||||||||||||||||||||||||||||
Share-based compensation related to stock options and restricted stock | — | — | — | — | 1,058 | — | — | 1,058 | — | 1,058 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2008 | 38,254 | 6,875 | $ | 382 | $ | 69 | $ | 123,562 | $ | — | $ | (8,848 | ) | $ | (2,298 | ) | $ | 112,867 | $ | 262,554 | $ | 375,421 | ||||||||||||||||||||||
F-56
Table of Contents
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
As Adjusted | As Adjusted | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Operating activities: | ||||||||||||
Net loss | $ | (319,466 | ) | (242,502 | ) | 2,174 | ||||||
Adjustment to reconcile net loss to net cash used in operating activities: | ||||||||||||
Extraordinary gain, net of taxes | (9,145 | ) | (2,403 | ) | — | |||||||
Discontinued operations attributable to noncontrolling interest | (12,144 | ) | (6,122 | ) | 9,011 | |||||||
Provision for loan losses | 168,552 | 78,441 | 8,883 | |||||||||
Restructuring charges, impairments and exit activities | 8,564 | 13,591 | — | |||||||||
Impairment of inventory and long lived assets | 3,605 | 227,412 | 38,328 | |||||||||
Cumulative effect adjustment before noncontrolling interest | — | 700 | (1,899 | ) | ||||||||
Depreciation, amortization and accretion, net | 28,389 | 23,693 | 31,845 | |||||||||
Share-based compensation expense | 3,821 | 9,386 | 9,291 | |||||||||
Tax benefits from share-based compensation | — | (1,265 | ) | (3,719 | ) | |||||||
Securities activities, net | (4,116 | ) | (9,707 | ) | (9,795 | ) | ||||||
Net losses (gains) on sales of real estate owned, loans and office properties and equipment | (2,448 | ) | 201 | (5,079 | ) | |||||||
Net gain on sale of Ryan Beck Holdings, Inc. | — | (2,175 | ) | — | ||||||||
Originations and repayments of loans held for sale, net | (59,323 | ) | (90,745 | ) | (93,887 | ) | ||||||
Proceeds from sales of loans held for sale | 53,564 | 96,470 | 87,793 | |||||||||
Equity in earnings from Bluegreen | (13,696 | ) | (10,275 | ) | (9,445 | ) | ||||||
Equity in earnings from unconsolidated affiliates | (323 | ) | (115 | ) | — | |||||||
Impairment of unconsolidated affiliates | 96,579 | — | — | |||||||||
Impairment of investments | 15,548 | — | — | |||||||||
Impairment of goodwill | 46,564 | — | — | |||||||||
Deferred income tax provision (benefit) | 50,260 | (44,024 | ) | (20,625 | ) | |||||||
Net losses (gains) associated with debt redemption | 1,238 | — | (71 | ) | ||||||||
Increase in forgivable notes receivable, net | — | (673 | ) | (6,111 | ) | |||||||
(Increase) decrease in real estate held for development and sale | (8,582 | ) | 27,006 | (259,629 | ) | |||||||
(Increase) decrease in securities owned, net | — | (23,855 | ) | 67,910 | ||||||||
Increase (decrease) securities sold but not yet purchased | — | 28,419 | (3,770 | ) | ||||||||
Decrease (increase) in accrued interest receivable | 4,454 | 1,405 | (6,183 | ) | ||||||||
Decrease (increase) in other assets | 15,584 | (12,204 | ) | (6,465 | ) | |||||||
Increase (decrease) in due to clearing agent | — | 9,657 | (40,115 | ) | ||||||||
Decrease in customer deposits | (123 | ) | (23,974 | ) | (8,990 | ) | ||||||
Decrease in other liabilities | (30,858 | ) | (45,712 | ) | (21,058 | ) | ||||||
Net cash provided by (used in) operating activities | 36,498 | 630 | (241,606 | ) | ||||||||
Investing activities: | ||||||||||||
Proceeds from redemption and maturity of investment securities and tax certificates | $ | 349,397 | 208,345 | 199,482 | ||||||||
Purchase of investment securities and tax certificates | (377,983 | ) | (211,402 | ) | (236,962 | ) | ||||||
Purchase of securities available for sale | (288,241 | ) | (682,231 | ) | (143,272 | ) | ||||||
Proceeds from sales and maturities of securities available for sale | 541,381 | 719,898 | 181,444 |
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For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
As Adjusted | As Adjusted | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Decrease (increase) in restricted cash | (19,081 | ) | (1,576 | ) | 651 | |||||||
Purchases of FHLB stock | (47,655 | ) | (22,725 | ) | (49,950 | ) | ||||||
Redemption of FHLB stock | 67,051 | 28,939 | 39,664 | |||||||||
Distributions from unconsolidated subsidiaries | 3,189 | 8,186 | 5,303 | |||||||||
Investments in unconsolidated subsidiaries | (66 | ) | (6,863 | ) | (10,323 | ) | ||||||
Net repayments (purchases and originations) of loans | 23,285 | (2,173 | ) | (106,123 | ) | |||||||
Proceeds from the sale of loans receivable | 10,100 | — | — | |||||||||
Additions to real estate owned | (19 | ) | (2,011 | ) | — | |||||||
Proceeds from sales of real estate owned | 3,810 | 2,252 | 4,382 | |||||||||
Proceeds from sales of property and equipment | 6,693 | 969 | 2,055 | |||||||||
Purchases of office property and equipment, net | (12,648 | ) | (103,033 | ) | (121,680 | ) | ||||||
Net cash outflows from the sale of Central Florida stores | (4,491 | ) | — | — | ||||||||
Equity securities received from Ryan Beck Holdings, Inc. earnout | (11,309 | ) | — | — | ||||||||
Deconsolidation of Woodbridge’s subsidiary cash balance | — | (6,387 | ) | — | ||||||||
Net proceeds from the sale of Ryan Beck Holdings, Inc. | — | 2,628 | — | |||||||||
Acquisition in Pizza Fusion Class B preferred shares | (3,000 | ) | — | — | ||||||||
Acquisition of BankAtlantic Bancorp Class A shares | (3,925 | ) | — | — | ||||||||
Acquisition of Woodbridge Class A shares | — | (33,205 | ) | — | ||||||||
Net cash (used in) provided by investing activities | $ | 236,488 | (100,389 | ) | (235,329 | ) | ||||||
Financing activities: | ||||||||||||
Net (decrease) increase in deposits | $ | (3,482 | ) | 86,369 | 114,360 | |||||||
Prepayments of FHLB advances | (694,363 | ) | — | — | ||||||||
Net proceeds (repayments) of FHLB advances | 262,808 | (120,000 | ) | 233,656 | ||||||||
Net decrease in securities sold under agreements to repurchase | (9,543 | ) | (45,456 | ) | (13,403 | ) | ||||||
Net increase (decrease) in federal funds purchased | 129,364 | 76,949 | (107,449 | ) | ||||||||
Repayments of secured borrowings | — | — | (26,516 | ) | ||||||||
Prepayment of notes and bonds payable | (2,751 | ) | — | — | ||||||||
Repayment of notes and bonds payable | (32,055 | ) | (162,213 | ) | (216,891 | ) | ||||||
Proceeds from notes and bonds payable | 27,522 | 236,839 | 384,732 | |||||||||
Issuance of junior subordinated debentures | — | 30,929 | 30,928 | |||||||||
Payments for debt issuance costs | (518 | ) | (1,695 | ) | (3,043 | ) | ||||||
Capital contributions in managed fund by investors | — | — | 2,905 | |||||||||
Capital withdrawals in managed fund by investors | — | — | (4,203 | ) | ||||||||
Excess tax benefits from share-based compensation | — | 1,265 | 3,719 | |||||||||
Proceeds from the issuance of BFC Class A Common Stock, net of issuance costs | — | 36,121 | — | |||||||||
Proceeds from the exercise of stock options | — | 187 | — | |||||||||
Preferred stock dividends paid | (750 | ) | (750 | ) | (750 | ) | ||||||
Purchase and retirement of Class A common stock | (54 | ) | — | — | ||||||||
Purchase and retirement of Woodbridge common stock | (1,439 | ) | — | — | ||||||||
Purchase and retirement of BankAtlantic Bancorp Class A common stock | — | (53,769 | ) | — |
F-58
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For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
As Adjusted | As Adjusted | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Proceeds from the issuance of Woodbridge Class A common stock, net of issuance costs | — | 152,651 | — | |||||||||
Payment of the minimum withholding tax upon the exercise of stock options | — | — | (6,871 | ) | ||||||||
Proceeds from issuance of BankAtlantic Bancorp Class A common stock | 103 | 2,449 | 1,479 | |||||||||
Purchase of subsidiary common stock | — | — | (7,833 | ) | ||||||||
BankAtlantic Bancorp common stock dividends paid to non-BFC shareholders | (636 | ) | (5,746 | ) | (7,592 | ) | ||||||
Woodbridge common stock dividends paid to non-BFC shareholders | — | (330 | ) | (1,322 | ) | |||||||
Distribution from venture partnership to minority holders | (410 | ) | — | — | ||||||||
Net cash (used in) provided by financing activities | (326,204 | ) | 233,800 | 375,906 | ||||||||
Increase (decrease) in cash and cash equivalents | (53,218 | ) | 134,041 | (101,029 | ) | |||||||
Cash and cash equivalents at beginning of period | 332,155 | 201,123 | 305,437 | |||||||||
Cash and cash equivalents of discontinued assets held for sale at disposal date | — | (6,294 | ) | — | ||||||||
Cash and cash equivalents of discontinued assets held for sale | — | 3,285 | (3,285 | ) | ||||||||
Cash and cash equivalents at end of period | $ | 278,937 | 332,155 | 201,123 | ||||||||
Supplemental cash flow information: | ||||||||||||
Interest on borrowings and deposits | $ | 153,168 | 197,157 | 167,430 | ||||||||
Income taxes (refunded) paid | (44,100 | ) | 5,409 | 39,770 | ||||||||
Supplementary disclosure of non-cash investing and financing activities: | ||||||||||||
Loans and tax certificates transferred to REO | 7,208 | 2,528 | 23,728 | |||||||||
Securities held-to-maturity transferred to securities available for sale | — | 203,004 | — | |||||||||
Long-lived assets held-for-use transferred to assets held for sale | — | 13,704 | — | |||||||||
Securities purchased pending settlement | — | 18,926 | — | |||||||||
Decrease in additional paid in capital from the re-classification of the 5% Preferred Stock to Redeemable Preferred stock (see Note 34) | 11,029 | — | — | |||||||||
Decrease in inventory from the reclassification to to property and equipment | — | 2,859 | 8,412 | |||||||||
Reduction in loan participations sold accounted for as secured borrowings | — | — | 111,754 | |||||||||
Exchange branch facilities | — | — | 2,350 | |||||||||
Increase (decrease) in accumulated other comprehensive income, net of taxes | (3,894 | ) | 145 | 926 | ||||||||
Net increase (decrease) in shareholders’ equity from the effect of subsidiaries’ capital transactions, net of taxes | 2,398 | (101 | ) | (16 | ) |
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Table of Contents
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
As Adjusted | As Adjusted | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Issuance and retirement of BFC Class A Common Stock accepted as consideration for the exercise price of stock options | — | — | 4,154 | |||||||||
Increase in deferred tax liability due to cumulative impact of change in accounting for uncertainties in income taxes (FIN 48 — see Note 25) | — | 121 | — |
F-60
Table of Contents
1. | Organization and Summary of Significant Accounting Policies |
Percent | ||||||||||||
Shares | Percent of | of | ||||||||||
Owned | Ownership | Vote | ||||||||||
BankAtlantic Bancorp | ||||||||||||
Class A Common Stock(1) | 2,389,697 | 23.30 | % | 12.35 | % | |||||||
Class B Common Stock | 975,225 | 100.00 | % | 47.00 | % | |||||||
Total | 3,364,922 | 29.96 | % | 59.35 | % | |||||||
Woodbridge Holdings Corporation | ||||||||||||
Class A Common Stock(2) | 3,735,392 | 22.43 | % | 11.89 | % | |||||||
Class B Common Stock | 243,807 | 100.00 | % | 47.00 | % | |||||||
Total | 3,979,199 | 23.55 | % | 58.89 | % |
(1) | In August 2008 and December 2008, BFC purchased an aggregate of 400,000 shares and 323,848 shares, respectively, of BankAtlantic Bancorp’s Class A common stock on the open market for an aggregate purchase price of $2.8 million and $1.1 million, respectively. BFC’s August 2008 and December 2008 acquisitions of BankAtlantic Bancorp’s Class A common stock increased BFC’s ownership interest in BankAtlantic Bancorp by approximately 3.6% in August 2008 and 2.9% in December 2008 and increased BFC’s voting interest by approximately 2.1% in August 2008 and 1.6% in December 2008. The acquisitions of additional shares of BankAtlantic Bancorp have been accounted for as step acquisitions under the purchase method of accounting. See Note 2 for further information. | |
(2) | BFC’s percentage of vote includes 1,229,117 shares of Woodbridge’s Class A Common Stock which BFC had previously agreed not to vote (except in limited circumstances) pursuant to a letter agreement requested by Woodbridge in connection with the listing of its shares on the NYSE. |
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F-62
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F-63
Table of Contents
F-64
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F-65
Table of Contents
F-66
Table of Contents
F-67
Table of Contents
F-68
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F-69
Table of Contents
F-70
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F-71
Table of Contents
F-72
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F-73
Table of Contents
F-74
Table of Contents
2. | Business Combination and Step Acquisitions |
F-75
Table of Contents
3. | Discontinued Operations |
F-76
Table of Contents
F-77
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Consideration received: | ||||
Stifel common stock and Warrants | $ | 107,445 | ||
Cash | 2,628 | |||
Total consideration received | 110,073 | |||
Net assets disposed: | ||||
Discontinued operations assets held for sale at disposal date | 206,763 | |||
Discontinued operations liabilities held for sale at disposal date | (117,364 | ) | ||
Net assets available for sale at disposal date | 89,399 | |||
Transaction cost | 2,709 | |||
Gain on disposal of Ryan Beck before income taxes | 17,965 | |||
Provision for income taxes | 2,959 | |||
Net gain on sale of Ryan Beck | $ | 15,006 | ||
For the Years Ended December 31, | ||||||||
2007 | 2006 | |||||||
Financial Services: | ||||||||
Investment banking revenue | $ | 37,836 | 218,461 | |||||
Expenses: | ||||||||
Employee compensation and benefits | 27,532 | 170,605 | ||||||
Occupancy and equipment | 2,984 | 16,588 | ||||||
Advertising and promotion | 740 | 5,788 | ||||||
Transaction related costs(1) | 14,263 | — | ||||||
Other expenses: | ||||||||
Professional fees | 1,106 | 8,790 | ||||||
Communications | 2,255 | 15,187 | ||||||
Floor broker and clearing fees | 1,162 | 8,612 | ||||||
Interest expense | 985 | 5,995 | ||||||
Other | 1,086 | 6,389 | ||||||
Total expenses | 52,113 | 237,954 | ||||||
Loss from Ryan Beck discontinued operations before income taxes | (14,277 | ) | (19,493 | ) | ||||
Income tax benefit | (6,431 | ) | (8,958 | ) | ||||
Loss from Ryan Beck discontinued operations, net of income taxes | $ | (7,846 | ) | (10,535 | ) | |||
(1) | Ryan Beck sale related costs include $9.3 million of change in control payments, $3.5 million of one-time employee termination benefits and $1.5 million of share-based compensation. |
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4. | Segment Reporting |
F-79
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F-80
Table of Contents
BankAtlantic | ||||||||||||||||||||||||||||
Bancorp | Woodbridge | Adjustments | ||||||||||||||||||||||||||
BFC | Other | Land | Other | and | ||||||||||||||||||||||||
Activities | BankAtlantic | Operations | Division | Operations | Eliminations | Total | ||||||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||||||
2008 | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Sales of real estate | $ | — | — | — | 11,268 | 2,484 | 85 | 13,837 | ||||||||||||||||||||
Interest and dividend income | 1,376 | 313,307 | 1,445 | 1,931 | 2,418 | (1,379 | ) | 319,098 | ||||||||||||||||||||
Other income | 5,853 | 135,799 | 671 | 14,341 | 2,692 | (4,821 | ) | 154,535 | ||||||||||||||||||||
Total revenues | 7,229 | 449,106 | 2,116 | 27,540 | 7,594 | (6,115 | ) | 487,470 | ||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||
Cost of sale of real estate | — | — | — | 6,742 | 16,151 | (10,055 | ) | 12,838 | ||||||||||||||||||||
Interest expense, net | — | 119,534 | 21,262 | 3,637 | 8,115 | (1,379 | ) | 151,169 | ||||||||||||||||||||
Provision for loan losses | — | 135,383 | 24,418 | — | — | — | 159,801 | |||||||||||||||||||||
Other expenses | 12,393 | 328,534 | 8,741 | 24,608 | 26,597 | (4,821 | ) | 396,052 | ||||||||||||||||||||
Total costs and expenses | 12,393 | 583,451 | 54,421 | 34,987 | 50,863 | (16,255 | ) | 719,860 | ||||||||||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | (152 | ) | 920 | 600 | — | 13,696 | — | 15,064 | ||||||||||||||||||||
Impairment of unconsolidated affiliates | — | — | — | — | (96,579 | ) | — | (96,579 | ) | |||||||||||||||||||
Impairment of investment | (3,574 | ) | — | — | — | (11,974 | ) | (15,548 | ) | |||||||||||||||||||
Loss from continuing operations before income taxes | (8,890 | ) | (133,425 | ) | (51,705 | ) | (7,447 | ) | (138,126 | ) | 10,140 | (329,453 | ) | |||||||||||||||
(Benefit) provision for income taxes | (14,887 | ) | 31,121 | 1,395 | (1,866 | ) | — | — | 15,763 | |||||||||||||||||||
Loss (income) from continuing operations | 5,997 | (164,546 | ) | (53,100 | ) | (5,581 | ) | (138,126 | ) | 10,140 | (345,216 | ) | ||||||||||||||||
Discontinued operations, less income taxes | 4,461 | — | 16,605 | — | — | (4,461 | ) | 16,605 | ||||||||||||||||||||
Extraordinary gain, less income taxes | 9,145 | — | — | — | — | — | 9,145 | |||||||||||||||||||||
Net (loss) income | 19,603 | (164,546 | ) | (36,495 | ) | (5,581 | ) | (138,126 | ) | 5,679 | (319,466 | ) | ||||||||||||||||
Net (loss) income attributable to noncontrolling interest | 12 | (122,175 | ) | (27,097 | ) | (4,651 | ) | (115,105 | ) | 8,449 | (260,567 | ) | ||||||||||||||||
Net (loss) income attributable to BFC | $ | 19,591 | (42,371 | ) | (9,398 | ) | (930 | ) | (23,021 | ) | 2,770 | (58,899 | ) | |||||||||||||||
At December 31, 2008 Total assets | $ | 26,468 | 5,713,690 | 542,478 | 339,941 | 220,587 | (447,582 | ) | 6,395,582 | |||||||||||||||||||
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Table of Contents
BankAtlantic | ||||||||||||||||||||||||||||||||||||
Bancorp | Woodbridge | Adjustments | ||||||||||||||||||||||||||||||||||
BFC | Other | Primary | Tennessee | Land | Other | and | ||||||||||||||||||||||||||||||
Activities | BankAtlantic | Operations | Homebuilding | Homebuilding | Division | Operations | Eliminations | Total | ||||||||||||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||||||||||||||
2007 | ||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
Sales of real estate | $ | — | — | — | 345,666 | 42,042 | 16,567 | 6,574 | (734 | ) | 410,115 | |||||||||||||||||||||||||
Interest and dividend income | 2,374 | 369,570 | 2,320 | 613 | 39 | 3,880 | 7,158 | (8,050 | ) | 377,904 | ||||||||||||||||||||||||||
Other income | 6,272 | 143,193 | 6,969 | 8,523 | 44 | 8,194 | 1,174 | (3,821 | ) | 170,548 | ||||||||||||||||||||||||||
Total revenues | 8,646 | 512,763 | 9,289 | 354,802 | 42,125 | 28,641 | 14,906 | (12,605 | ) | 958,567 | ||||||||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||||||||||
Cost of sales of real estate | — | — | — | 501,206 | 51,360 | 7,447 | 16,793 | (3,565 | ) | 573,241 | ||||||||||||||||||||||||||
Interest expense, net | — | 170,060 | 23,054 | 7,258 | 151 | 2,629 | 1,073 | (7,746 | ) | 196,479 | ||||||||||||||||||||||||||
Provision for loan losses | — | 70,842 | — | — | — | — | — | — | 70,842 | |||||||||||||||||||||||||||
Other expenses | 15,272 | 313,898 | 4,282 | 63,107 | 5,010 | 19,077 | 34,898 | (3,738 | ) | 451,806 | ||||||||||||||||||||||||||
Total costs and expenses | 15,272 | 554,800 | 27,336 | 571,571 | 56,521 | 29,153 | 52,764 | (15,049 | ) | 1,292,368 | ||||||||||||||||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | (78 | ) | 1,219 | 1,281 | 40 | — | — | 10,262 | — | 12,724 | ||||||||||||||||||||||||||
Loss from continuing operations before income taxes | (6,704 | ) | (40,818 | ) | (16,766 | ) | (216,729 | ) | (14,396 | ) | (512 | ) | (27,596 | ) | 2,444 | (321,077 | ) | |||||||||||||||||||
(Benefit) provision for income taxes | (19,271 | ) | (21,378 | ) | (6,194 | ) | (1,396 | ) | 1,700 | 5,910 | (34,297 | ) | 5,914 | (69,012 | ) | |||||||||||||||||||||
(Loss) income from continuing operations | 12,567 | (19,440 | ) | (10,572 | ) | (215,333 | ) | (16,096 | ) | (6,422 | ) | 6,701 | (3,470 | ) | (252,065 | ) | ||||||||||||||||||||
Discontinued operations, less income taxes | 1,038 | — | 7,812 | — | — | — | — | (1,690 | ) | 7,160 | ||||||||||||||||||||||||||
Extraordinary gain, less income taxes | 2,403 | — | — | — | — | — | — | — | 2,403 | |||||||||||||||||||||||||||
Net (loss) income | 16,008 | (19,440 | ) | (2,760 | ) | (215,333 | ) | (16,096 | ) | (6,422 | ) | 6,701 | (5,160 | ) | (242,502 | ) | ||||||||||||||||||||
Net (loss) income attributable to noncontrolling interest | (34 | ) | (14,610 | ) | (2,074 | ) | (179,268 | ) | (13,400 | ) | (5,346 | ) | 5,579 | (2,889 | ) | (212,043 | ) | |||||||||||||||||||
Net (loss) income attributable to BFC | $ | 16,042 | (4,830 | ) | (686 | ) | (36,065 | ) | (2,696 | ) | (1,076 | ) | 1,122 | (2,271 | ) | (30,459 | ) | |||||||||||||||||||
At December 31, 2007 Total assets | $ | 30,166 | 6,161,962 | 758,372 | 38,497 | — | 380,961 | 298,700 | (554,225 | ) | 7,114,433 | |||||||||||||||||||||||||
F-82
Table of Contents
BankAtlantic | ||||||||||||||||||||||||||||||||||||
Bancorp | Woodbridge | Adjustments | ||||||||||||||||||||||||||||||||||
BFC | Other | Primary | Tennessee | Land | Other | and | ||||||||||||||||||||||||||||||
Activities | BankAtlantic | Operations | Homebuilding | Homebuilding | Division | Operations | Eliminations | Total | ||||||||||||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||||||||||||||
2006 | ||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
Sales of real estate | $ | — | — | — | 424,420 | 76,299 | 69,778 | 11,041 | (15,452 | ) | 566,086 | |||||||||||||||||||||||||
Interest and dividend income | 2,292 | 364,949 | 2,448 | 434 | 110 | 961 | 3,377 | (2,671 | ) | 371,900 | ||||||||||||||||||||||||||
Other income | 3,680 | 131,811 | 9,138 | 6,897 | 17 | 5,505 | 2,254 | (2,708 | ) | 156,594 | ||||||||||||||||||||||||||
Total revenues | 5,972 | 496,760 | 11,586 | 431,751 | 76,426 | 76,244 | 16,672 | (20,831 | ) | 1,094,580 | ||||||||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||||||||||
Cost of sale of real estate | — | — | — | 367,252 | 72,807 | 42,662 | 11,649 | (11,409 | ) | 482,961 | ||||||||||||||||||||||||||
Interest expense, net | — | 145,344 | 21,933 | — | — | — | — | (699 | ) | 166,578 | ||||||||||||||||||||||||||
Provision for loan losses | — | 8,574 | — | — | — | — | — | — | 8,574 | |||||||||||||||||||||||||||
Other expenses | 12,835 | 293,448 | 6,738 | 67,414 | 14,113 | 15,119 | 28,182 | (2,626 | ) | 435,223 | ||||||||||||||||||||||||||
Total costs and expenses | 12,835 | 447,366 | 28,671 | 434,666 | 86,920 | 57,781 | 39,831 | (14,734 | ) | 1,093,336 | ||||||||||||||||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | — | 33 | 1,634 | (279 | ) | — | — | 9,547 | — | 10,935 | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (6,863 | ) | 49,427 | (15,451 | ) | (3,194 | ) | (10,494 | ) | 18,463 | (13,612 | ) | (6,097 | ) | 12,179 | |||||||||||||||||||||
Provision (benefit) for income taxes | 13,105 | (6,008 | ) | (1,508 | ) | (3,241 | ) | 6,936 | (5,639 | ) | (2,318 | ) | (530 | ) | ||||||||||||||||||||||
(Loss) income from continuing operations | (5,006 | ) | 36,322 | (9,443 | ) | (1,686 | ) | (7,253 | ) | 11,527 | (7,973 | ) | (3,779 | ) | 12,709 | |||||||||||||||||||||
Discontinued operations, less income taxes | (1,524 | ) | — | (11,492 | ) | — | — | — | — | 2,481 | (10,535 | ) | ||||||||||||||||||||||||
Net (loss) income | (6,530 | ) | 36,322 | (20,935 | ) | (1,686 | ) | (7,253 | ) | 11,527 | (7,973 | ) | (1,298 | ) | 2,174 | |||||||||||||||||||||
Net (loss) income attributable to noncontrolling interest | (25 | ) | 28,468 | (16,408 | ) | (1,406 | ) | (6,048 | ) | 9,613 | (6,649 | ) | (3,150 | ) | 4,395 | |||||||||||||||||||||
Net (loss) income attributable to BFC | $ | (6,505 | ) | 7,854 | (4,527 | ) | (280 | ) | (1,205 | ) | 1,914 | (1,324 | ) | 1,852 | (2,221 | ) | ||||||||||||||||||||
At December 31, 2006 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 45,756 | 6,187,122 | 796,629 | 644,447 | 62,065 | 271,169 | 146,116 | (547,538 | ) | 7,605,766 | |||||||||||||||||||||||||
5. | Cumulative-Effect Adjustment for Quantifying Financial Statement Misstatements |
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Cumulative Effect | ||||
Adjustment | ||||
As of January 1, 2006 | ||||
Other liabilities: | ||||
Recurring operating expenses(1) | $ | 1,618 | ||
Deferred data processing expenses(2) | 1,474 | |||
Current taxes payable | (696 | ) | ||
Increase in other liabilities | 2,396 | |||
Decrease in deferred tax liability | (657 | ) | ||
Decrease in noncontrolling interest | (1,486 | ) | ||
Decrease in retained earnings | $ | 253 | ||
(1) | BankAtlantic has historically expensed certain recurring invoices when paid. The effect of this accounting policy was not material to the Company’s financial statements in any given year as the “rollover” impact of expenses in the following year approximated the expenses that rolled over from the prior year. | |
(2) | BankAtlantic pays a fixed fee for certain data processing transaction services, and at the end of each contract year, the actual number of transactions is determined and the fees related to any greater or lesser transactions are invoiced or repaid to BankAtlantic over a twelve month period. BankAtlantic accounted for these charges when paid. The effect of this accounting policy was not material to the Company’s financial statements in any given year and the amount of the error had accumulated over a four year period as follows (in thousands): |
For the Years | Occupancy and | |||
Ended December 31, | Equipment Expense | |||
2002 | $ | 221 | ||
2003 | 276 | |||
2004 | 533 | |||
2005 | 444 | |||
$ | 1,474 | |||
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6.�� | Restructuring Charges, Impairments and Exit Activities |
Employee | ||||||||||||
Termination | ||||||||||||
Benefits | Contract | Total | ||||||||||
Liability | Liability | Liability | ||||||||||
Balance at January 1, 2007 | $ | — | — | — | ||||||||
Restructuring charges | 2,527 | 1,016 | 3,543 | |||||||||
Amounts paid or amortized | (2,425 | ) | (26 | ) | (2,451 | ) | ||||||
Balance at December 31, 2007 | $ | 102 | 990 | 1,092 | ||||||||
Employee | ||||||||||||
Termination | ||||||||||||
Benefits | Contract | Total | ||||||||||
Liability | Liability | Liability | ||||||||||
Balance at January 1, 2008 | $ | 102 | 990 | 1,092 | ||||||||
Expense incurred | 2,171 | 2,385 | 4,556 | |||||||||
Amounts paid or amortized | (2,102 | ) | (1,913 | ) | (4,015 | ) | ||||||
Balance at December 31 , 2008 | $ | 171 | 1,462 | 1,633 | ||||||||
For the Years Ended December 31, | ||||||||
2008 | 2007 | |||||||
Asset impairment | $ | 4,758 | 4,808 | |||||
Employee termination costs | 2,171 | 2,527 | ||||||
Lease termination, net | 2,385 | 1,016 | ||||||
Reversal of deferred rent upon lease termination | (2,186 | ) | — | |||||
Loss on central Florida branch sale | 267 | — | ||||||
Total | $ | 7,395 | 8,351 | |||||
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Amount | ||||
Assets sold: | ||||
Loans | $ | 6,470 | ||
Property and equipment | 13,373 | |||
Total assets sold | 19,843 | |||
Liabilities transferred: | ||||
Deposits | (24,477 | ) | ||
Other liabilities | (346 | ) | ||
Total liabilities transferred | (24,823 | ) | ||
Net liability transferred | (4,980 | ) | ||
Deposit premium | 654 | |||
Purchase transaction costs | (165 | ) | ||
Net cash outflows from sales of stores | $ | (4,491 | ) | |
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Severance | Independent | Surety | ||||||||||||||||||
Related and | Contractor | Bond | ||||||||||||||||||
Benefits | Facilities | Agreements | Accrual | Total | ||||||||||||||||
Balance at December 31, 2006 | $ | — | — | — | — | — | ||||||||||||||
Restructuring charges | 4,864 | 1,010 | 1,497 | 1,826 | 9,197 | |||||||||||||||
Cash payments | (2,910 | ) | — | (76 | ) | — | (2,986 | ) | ||||||||||||
Balance at December 31, 2007 | $ | 1,954 | 1,010 | 1,421 | 1,826 | 6,211 | ||||||||||||||
Restructuring charges | 2,238 | 140 | — | (150 | ) | 2,228 | ||||||||||||||
Cash payments | (4,063 | ) | (446 | ) | (824 | ) | (532 | ) | (5,865 | ) | ||||||||||
Balance at December 31, 2008 | $ | 129 | 704 | 597 | 1,144 | 2,574 | ||||||||||||||
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7. | Goodwill |
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8. | Federal Funds Sold and Other Short Term Investments |
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Ending Balance | $ | 20,825 | 484 | 691 | ||||||||
Maximum outstanding at any month end within period | $ | 362,360 | 21,555 | 16,276 | ||||||||
Average amount invested during period | $ | 44,031 | 3,638 | 1,824 | ||||||||
Average yield during period | 1.92 | % | 4.77 | % | 3.00 | % |
9. | Securities Available for Sale |
December 31, 2008 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Government agency securities: | ||||||||||||||||
Mortgage-backed securities | $ | 521,895 | 11,017 | 39 | 532,873 | |||||||||||
Real estate mortgage investment conduits(1) | 165,449 | 1,846 | 944 | 166,351 | ||||||||||||
Total mortgage-backed securities | 687,344 | 12,863 | 983 | 699,224 | ||||||||||||
Investment Securities: | ||||||||||||||||
Tax-exempt securities | — | — | — | — | ||||||||||||
Other bonds | 250 | — | — | 250 | ||||||||||||
Benihana Convertible Preferred Stock (see Note 12) | 16,426 | — | — | 16,426 | ||||||||||||
Equity securities | 6,686 | 112 | — | 6,798 | ||||||||||||
Total investment securities | 23,362 | 112 | — | 23,474 | ||||||||||||
Total | $ | 710,706 | 12,975 | 983 | 722,698 | |||||||||||
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December 31, 2007 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Government agency securities: | ||||||||||||||||
Mortgage-backed securities | $ | 585,796 | 4,378 | 555 | 589,619 | |||||||||||
Real estate mortgage investment conduits(1) | 199,886 | 1,359 | 2,403 | 198,842 | ||||||||||||
Total mortgage-backed securities | 785,682 | 5,737 | 2,958 | 788,461 | ||||||||||||
Investment Securities: | ||||||||||||||||
Tax-exempt securities | — | — | — | — | ||||||||||||
Other bonds | 685 | — | 4 | 681 | ||||||||||||
Equity securities | 123,876 | 13,289 | — | 137,165 | ||||||||||||
Total investment securities | 124,561 | 13,289 | 4 | 137,846 | ||||||||||||
Total | $ | 910,243 | 19,026 | 2,962 | 926,307 | |||||||||||
(1) | Real estate mortgage investment conduits are pass-through entities that hold residential loans, and investors are issued ownership interests in the entities in the form of a bond. The securities were issued by government agencies. |
As of December 31, 2008 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Mortgage-backed securities | $ | 4,736 | (39 | ) | — | — | 4,736 | (39 | ) | |||||||||||||||
Real estate mortgage investment conduits | — | — | 27,426 | (944 | ) | 27,426 | (944 | ) | ||||||||||||||||
Total available for sale securities: | $ | 4,736 | (39 | ) | 27,426 | (944 | ) | 32,162 | (983 | ) | ||||||||||||||
As of December 31, 2007 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Mortgage-backed securities | $ | 68,821 | (396 | ) | 14,792 | (159 | ) | 83,613 | (555 | ) | ||||||||||||||
Real estate mortgage investment conduits | 3,475 | (5 | ) | 35,398 | (2,398 | ) | 38,873 | (2,403 | ) | |||||||||||||||
Other bonds | 200 | — | 246 | (4 | ) | 446 | (4 | ) | ||||||||||||||||
Total available for sale securities: | $ | 72,496 | (401 | ) | 50,436 | (2,561 | ) | 122,932 | (2,962 | ) | ||||||||||||||
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Debt Securities | ||||||||
Available for Sale | ||||||||
Estimated | ||||||||
Amortized | Fair | |||||||
Cost | Value | |||||||
December 31, 2008(1)(2) | ||||||||
Due within one year | $ | — | — | |||||
Due after one year, but within five years | 279 | 281 | ||||||
Due after five years, but within ten years | 868 | 867 | ||||||
Due after ten years | 686,447 | 698,326 | ||||||
Total | $ | 687,594 | 699,474 | |||||
(1) | Scheduled maturities in the above table may vary significantly from actual maturities due to prepayments. | |
(2) | Scheduled maturities are based upon contractual maturities. |
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Gross gains on securities sales | $ | 8,378 | 17,026 | 10,137 | ||||||||
Gross losses on securities sales | $ | (5,103 | ) | (4,341 | ) | (168 | ) | |||||
Proceeds from sales of securities | $ | 395,770 | 625,095 | 70,300 | ||||||||
Other-than-temporary impairments | $ | (3,413 | ) | — | — | |||||||
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December 31, | ||||
2008 | ||||
Total cost | $ | 33,978 | ||
Sale of portion of Office Depot common stock | (17,726 | ) | ||
Other-than-temporary impairment | (11,974 | ) | ||
Total fair value | $ | 4,278 | ||
10. | Investment Securities |
December 31, 2008 | ||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Private investment securities(3) | $ | 12,008 | 467 | — | 12,475 | |||||||||||
December 31, 2007 | ||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Stifel restricted common stock(1) | $ | 31,433 | 3,061 | — | $ | 34,494 | ||||||||||
Private investment securities | 8,740 | 1,407 | — | 10,147 | ||||||||||||
Benihana Convertible Preferred Stock(2) | 20,000 | — | — | 20,000 | ||||||||||||
Equity securities(4) | — | 603 | — | 603 | ||||||||||||
$ | 60,173 | 5,071 | — | $ | 65,244 | |||||||||||
(1) | Stifel common stock that was subject to restrictions for more than one year was accounted for as investment securities at cost. |
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(2) | Historically, the Company’s investment in Benihana’s Convertible Preferred Stock has been classified as investment securities and has been carried at historical cost (see Note 12). | |
(3) | Private investment securities consist of equity instruments purchased through private placements and are accounted for at historical cost adjusted forother-than-temporary declines in value. | |
(4) | Equity securities consisted of 3,587 shares of MasterCard Class B common stock acquired through MasterCard’s 2006 initial public offering. |
11. | Tax Certificates |
As of December 31, 2008 | As of December 31, 2007 | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
Tax certificates(1) — | ||||||||||||||||
Net of allowance of $6,064 and $3,289, respectively | $ | 213,534 | 224,434 | 188,401 | 188,401 | |||||||||||
(1) | The estimated fair value was calculated at December 31, 2008 from an expected cash flow model discounted at an interest rate that takes into account the risk of the cash flows of tax certificates relative to alternative investments. At December 31, 2007, management considered the estimated fair value equivalent to book value for tax certificates since these securities have no stated maturity and generally redeem in two years or less. |
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For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Balance, beginning of period | $ | 3,289 | 3,699 | 3,271 | ||||||||
Charge-offs | (4,668 | ) | (867 | ) | (295 | ) | ||||||
Recoveries | 157 | 157 | 423 | |||||||||
Net (charge-offs) recoveries | (4,511 | ) | (710 | ) | 128 | |||||||
Provision charged to non-interest expense | 7,286 | 300 | 300 | |||||||||
Balance, end of period | $ | 6,064 | 3,289 | 3,699 | ||||||||
12. | Benihana Convertible Preferred Stock Investment |
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13. | Loans Receivable and Loans Held for Sale |
December 31, | December 31, | |||||||
2008 | 2007 | |||||||
Real estate loans: | ||||||||
Residential | $ | 1,916,562 | 2,155,752 | |||||
Builder land loans | 84,453 | 149,564 | ||||||
Land acquisition and development | 182,585 | 202,177 | ||||||
Land acquisition, development and construction | 104,629 | 151,321 | ||||||
Construction and development | 229,856 | 265,163 | ||||||
Commercial | 713,571 | 534,916 | ||||||
Consumer — home equity | 718,950 | 676,262 | ||||||
Small business | 218,694 | 211,797 | ||||||
Other loans: | ||||||||
Commercial business | 144,554 | 131,044 | ||||||
Small business — non-mortgage | 108,230 | 105,867 | ||||||
Consumer loans | 16,406 | 15,667 | ||||||
Deposit overdrafts | 9,730 | 15,005 | ||||||
Total gross loans | 4,448,220 | 4,614,535 | ||||||
Adjustments: | ||||||||
Premiums, discounts and net deferred fees | 3,221 | 3,936 | ||||||
Allowance for loan losses | (137,257 | ) | (94,020 | ) | ||||
Loans receivable — net | $ | 4,314,184 | 4,524,451 | |||||
Loans held for sale | $ | 3,461 | 4,087 | |||||
As of December 31, | ||||||||
2008 | 2007 | |||||||
Residential | $ | — | 2,982 | |||||
Construction and development | 124,332 | 214,159 | ||||||
Commercial | 38,930 | 105,336 | ||||||
Total undisbursed loans in process | $ | 163,262 | 322,477 | |||||
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Florida | 60 | % | ||
Eastern U.S.A. | 21 | % | ||
Western U.S.A. | 15 | % | ||
Central U.S.A | 4 | % | ||
100 | % | |||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Balance, beginning of period | $ | 94,020 | 44,173 | 41,830 | ||||||||
Loans charged-off | (117,874 | ) | (23,213 | ) | (8,905 | ) | ||||||
Recoveries of loans previously charged-off | 1,310 | 2,218 | 2,674 | |||||||||
Net (charge-offs) recoveries | (116,564 | ) | (20,995 | ) | (6,231 | ) | ||||||
Provision for loan losses | 159,801 | 70,842 | 8,574 | |||||||||
Balance, end of period | $ | 137,257 | 94,020 | 44,173 | ||||||||
As of December 31, 2008 | As of December 31, 2007 | |||||||||||||||
Gross | Gross | |||||||||||||||
Recorded | Specific | Recorded | Specific | |||||||||||||
Investment | Allowances | Investment | Allowances | |||||||||||||
Impaired loans with specific valuation allowances | $ | 174,710 | 41,192 | 113,955 | 17,809 | |||||||||||
Impaired loans without specific valuation allowances | 138,548 | — | 67,124 | — | ||||||||||||
Total | $ | 313,258 | 41,192 | 181,079 | 17,809 | |||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Contracted interest income | $ | 14,276 | 15,042 | 2,715 | ||||||||
Interest income recognized | (3,368 | ) | (10,071 | ) | (2,203 | ) | ||||||
Foregone interest income | $ | 10,908 | 4,971 | 512 | ||||||||
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As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Non-accrual — tax certificates | $ | 1,441 | 2,094 | 632 | ||||||||
Non-accrual — loans | ||||||||||||
Residential | 34,734 | 8,678 | 2,629 | |||||||||
Commercial real estate and business | 241,274 | 165,818 | — | |||||||||
Small business | 4,644 | 877 | 244 | |||||||||
Consumer | 6,763 | 3,218 | 1,563 | |||||||||
Total non-accrual loans | 287,415 | 178,591 | 4,436 | |||||||||
Real estate owned | 19,045 | 17,216 | 21,747 | |||||||||
Total non-performing assets | $ | 307,901 | 197,901 | 26,815 | ||||||||
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Performing impaired loans, net of specific allowances | $ | — | — | 162 | ||||||||
Loan 90 days past due and still accruing | 15,721 | — | — | |||||||||
Troubled debt restructured | 28,173 | 2,488 | — | |||||||||
Total potential problem loans | $ | 43,894 | 2,488 | 162 | ||||||||
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Real estate acquired in settlement of loans and tax certificates: | ||||||||||||
Operating expenses, net | $ | (1,243 | ) | (243 | ) | (224 | ) | |||||
Impairment of REO | (1,465 | ) | (7,299 | ) | 9 | |||||||
Net (loss) gain on sales | (124 | ) | 427 | 1,443 | ||||||||
Net (loss) gain on real estate owned activity | $ | (2,832 | ) | (7,115 | ) | 1,228 | ||||||
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14. | Properties and Equipment |
December 31, | ||||||||
2008 | 2007 | |||||||
Land, buildings and improvements | $ | 292,328 | 315,430 | |||||
Furniture and equipment | 104,363 | 115,504 | ||||||
Water irrigation facilities | 12,346 | 11,515 | ||||||
Total | 409,037 | 442,449 | ||||||
Less accumulated depreciation | 93,690 | 81,560 | ||||||
Properties and equipment — net | $ | 315,347 | 360,889 | |||||
15. | Real Estate Held for Development and Sale |
December 31, | ||||||||
2008 | 2007 | |||||||
Land and land development costs | $ | 221,684 | 216,090 | |||||
Construction costs | 463 | 5,426 | ||||||
Capitalized interest and other costs | 38,539 | 35,009 | ||||||
Land held for sale | 8,077 | 13,704 | ||||||
Total | $ | 268,763 | 270,229 | |||||
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16. | Capitalized Interest |
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Interest expense | $ | 162,669 | 243,439 | 209,509 | ||||||||
Interest capitalized | (11,500 | ) | (46,960 | ) | (42,931 | ) | ||||||
Interest expense, net | $ | 151,169 | 196,479 | 166,578 | ||||||||
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17. | Investments in Unconsolidated Affiliates |
December 31, | ||||||||
2008 | 2007 | |||||||
Investment in Bluegreen Corporation | $ | 29,789 | 111,321 | |||||
Investments in joint ventures | 2,973 | 5,615 | ||||||
BankAtlantic Bancorp investment in statutory business trusts | 8,218 | 8,820 | ||||||
Woodbridge investment in statutory business trusts | 406 | 2,565 | ||||||
$ | 41,386 | 128,321 | ||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Earnings from Bluegreen | $ | 13,696 | 10,275 | 9,684 | ||||||||
Loss from joint ventures | (152 | ) | (51 | ) | (416 | ) | ||||||
Earnings from statutory trusts | 1,520 | 2,500 | 1,667 | |||||||||
$ | 15,064 | 12,724 | 10,935 | |||||||||
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December 31, | ||||
2008 | ||||
Prorata share of Bluegreen’s net loss | $ | (154 | ) | |
Amortization of basis difference | 13,850 | |||
Total earnings from Bluegreen Corporation | $ | 13,696 | ||
December 31, | ||||
2008 | ||||
Prorata share of investment in Bluegreen Corporation | $ | 115,072 | ||
Purchase accounting adjustment (from the step acquisition) | (4,700 | ) | ||
Amortization of basis difference | 13,850 | |||
Less: Impairment of investment in Bluegreen Corporation | (94,433 | ) | ||
Investment in Bluegreen Corporation | $ | 29,789 | ||
December 31, | ||||||||
2008 | 2007 | |||||||
As Adjusted | As Adjusted | |||||||
(In thousands) | ||||||||
Total assets | $ | 1,193,507 | 1,039,578 | |||||
Total liabilities | 781,522 | 632,047 | ||||||
Total shareholders’ equity | 382,467 | 385,108 | ||||||
Noncontrolling interest | 29,518 | 22,423 | ||||||
Total liabilities and shareholders’ equity | $ | 1,193,507 | 1,039,578 | |||||
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Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2008 | 2007 | 2006 | ||||||||||
As Adjusted | As Adjusted | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Revenues and other income | $ | 602,043 | 691,494 | 671,509 | ||||||||
Cost and other expenses | 594,698 | 632,280 | 609,018 | |||||||||
Income before income taxes | 7,345 | 59,214 | 62,491 | |||||||||
Provision for income taxes | (766 | ) | (19,567 | ) | (20,861 | ) | ||||||
Income before cumulative effect of change in accounting principle | 6,579 | 39,647 | 41,630 | |||||||||
Cumulative effect of change in accounting principle, net of tax | — | — | (5,678 | ) | ||||||||
Net income | 6,579 | 39,647 | 35,952 | |||||||||
Less: Net income attributable to noncontrolling interest | 7,095 | 7,721 | 7,319 | |||||||||
Noncontrolling interest in cumulative effect of change in accounting principle | — | — | 1,184 | |||||||||
Net (loss) income attributable to Bluegreen Corporation | $ | (516 | ) | 31,926 | 29,817 | |||||||
As of December 31, | ||||||||
2008 | 2007 | |||||||
Statement of Financial Condition | ||||||||
Junior subordinated debentures | $ | 294,195 | 294,195 | |||||
Other assets | 1,035 | 1,072 | ||||||
Total Assets | $ | 295,230 | 295,267 | |||||
Trust preferred securities | $ | 285,375 | 285,375 | |||||
Other liabilities | 1,035 | 1,072 | ||||||
Total Liabilities | 286,410 | 286,447 | ||||||
Common securities | 8,820 | 8,820 | ||||||
Total Liabilities and Equity | $ | 295,230 | 295,267 | |||||
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For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Statement of Operations | ||||||||||||
Interest income from subordinated debentures | $ | 20,197 | 22,274 | 20,913 | ||||||||
Interest expense | (19,596 | ) | (21,612 | ) | (20,286 | ) | ||||||
Net income | $ | 601 | 662 | 627 | ||||||||
18. | Deposits |
and 2007 was 1.41% and 3.22%, respectively. The stated rates and balances on deposits were (dollars in thousands):
As of December 31, | ||||||||||||||||
2008 | 2007 | |||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||
Interest free checking | $ | 741,691 | 18.89 | % | 824,211 | 20.85 | % | |||||||||
Insured money fund savings | ||||||||||||||||
0.70% at December 31, 2008 | 427,762 | 10.89 | ||||||||||||||
2.45% at December 31, 2007, | 624,390 | 15.79 | ||||||||||||||
NOW accounts | ||||||||||||||||
0.50% at December 31, 2008 | 992,762 | 25.28 | ||||||||||||||
1.50% at December 31, 2007, | 900,233 | 22.77 | ||||||||||||||
Savings accounts | ||||||||||||||||
0.50% at December 31, 2008 | 419,494 | 10.68 | ||||||||||||||
1.50% at December 31, 2007, | 580,497 | 14.68 | ||||||||||||||
Total non-certificate accounts | 2,581,709 | 65.74 | 2,929,331 | 74.09 | ||||||||||||
Certificate accounts: | ||||||||||||||||
Less than 2.00% | 189,528 | 4.83 | 16,261 | 0.41 | ||||||||||||
2.01% to 3.00% | 145,188 | 3.70 | 52,435 | 1.33 | ||||||||||||
3.01% to 4.00% | 598,461 | 15.24 | 164,744 | 4.17 | ||||||||||||
4.01% to 5.00% | 337,885 | 8.61 | 445,498 | 11.27 | ||||||||||||
5.01% to 6.00% | 67,108 | 1.71 | 339,625 | 8.59 | ||||||||||||
6.01% to 7.00% | 6 | — | 32 | — | ||||||||||||
Total certificate accounts | 1,338,176 | 34.09 | 1,018,595 | 25.77 | ||||||||||||
Total deposit accounts | 3,919,885 | 99.83 | 3,947,926 | 99.86 | ||||||||||||
Premium on brokered deposits | (89 | ) | — | — | — | |||||||||||
Interest earned not credited to deposit accounts | 6,572 | 0.17 | 5,479 | 0.14 | ||||||||||||
Total | $ | 3,926,368 | 100.00 | % | 3,953,405 | 100.00 | % | |||||||||
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For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Money fund savings and NOW accounts | $ | 17,783 | 26,031 | 20,413 | ||||||||
Savings accounts | 4,994 | 12,559 | 2,936 | |||||||||
Certificate accounts — below $100,000 | 21,195 | 25,512 | 23,136 | |||||||||
Certificate accounts, $100,000 and above | 20,856 | 21,002 | 13,048 | |||||||||
Less early withdrawal penalty | (565 | ) | (628 | ) | (574 | ) | ||||||
Total | $ | 64,263 | 84,476 | 58,959 | ||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
Interest Rates | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | ||||||||||||||||||
0.00% to 2.00% | $ | 188,928 | 434 | 128 | — | 26 | 11 | |||||||||||||||||
2.01% to 3.00% | 136,775 | 6,505 | 1,342 | 159 | 407 | — | ||||||||||||||||||
3.01% to 4.00% | 581,465 | 7,435 | 3,408 | 2,718 | 3,431 | 4 | ||||||||||||||||||
4.01% to 5.00% | 283,391 | 13,687 | 6,798 | 26,576 | 7,433 | — | ||||||||||||||||||
5.01% to 6.00% | 38,579 | 25,204 | 699 | 870 | 1,757 | — | ||||||||||||||||||
6.01% and greater | 6 | — | — | — | — | — | ||||||||||||||||||
Total | $ | 1,229,144 | 53,265 | 12,375 | 30,323 | 13,054 | 15 | |||||||||||||||||
December 31, | ||||
2008 | ||||
3 months or less | $ | 259,704 | ||
4 to 6 months | 159,763 | |||
7 to 12 months | 170,000 | |||
More than 12 months | 74,232 | |||
Total | $ | 663,699 | ||
2008 | 2007 | |||||||
Brokered deposits | $ | 239,888 | 14,665 | |||||
Public deposits | 243,745 | 323,879 | ||||||
Total institutional deposits | $ | 483,633 | 338,544 | |||||
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Weighted | Weighted | |||||||||||
Average | Average | |||||||||||
Maturity | Interest | Outstanding | ||||||||||
Advances Maturing During the Year Ended: | Date | Rate | Balance | |||||||||
December 31, 2009 | 7/10/2009 | 3.69 | % | $ | 565,271 | |||||||
December 31, 2010 | 4/13/2010 | 2.84 | % | 402,220 | ||||||||
Total advances from the FHLB | $ | 967,491 | ||||||||||
20. | Federal Funds Purchased and Treasury Borrowings |
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Ending balance | $ | 238,339 | 108,975 | 32,026 | ||||||||
Maximum outstanding at any month end within period | $ | 238,339 | 175,000 | 266,237 | ||||||||
Average amount outstanding during period | $ | 78,125 | 115,334 | 176,237 | ||||||||
Average interest cost during period | 2.23 | % | 5.17 | % | 5.17 | % |
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21. | Securities Sold Under Agreements to Repurchase |
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Maximum borrowing at any month-end within the period | $ | 55,179 | 109,430 | 202,607 | ||||||||
Average borrowing during the period | $ | 63,529 | 73,848 | 123,944 | ||||||||
Average interest cost during the period | 2.23 | % | 4.88 | 4.83 | ||||||||
Average interest cost at end of the period | 0.12 | % | 3.46 | 5.17 |
Weighted | ||||||||||||||||
Estimated | Average | |||||||||||||||
Amortized | Fair | Repurchase | Interest | |||||||||||||
Cost | Value | Balance | Rate | |||||||||||||
December 31, 2008(1) | ||||||||||||||||
Mortgage-backed securities | $ | 46,689 | 47,896 | 41,387 | 0.12 | % | ||||||||||
REMIC | 0 | 0 | 0 | 0.00 | ||||||||||||
Total | $ | 46,689 | 47,896 | 41,387 | 0.00 | % | ||||||||||
December 31, 2007(1) | ||||||||||||||||
Mortgage-backed securities | $ | 30,028 | 30,251 | 23,468 | 3.46 | % | ||||||||||
REMIC | 37,796 | 35,398 | 27,462 | 3.46 | ||||||||||||
Total | $ | 67,824 | 65,649 | 50,930 | 3.46 | % | ||||||||||
(1) | At December 31, 2008 and 2007, all securities were classified as available for sale and were recorded at fair value in the consolidated statements of financial condition. |
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22. | Subordinated Debentures, Notes and Bonds Payable, Secured Borrowings, Junior Subordinated Debentures and Other Liabilities |
December 31, | Interest | Maturity | ||||||||||||||
2008 | 2007 | Rate | Date | |||||||||||||
BFC borrowings | ||||||||||||||||
Revolving Line of Credit | $ | — | LIBOR +2.80 | December 15, 2007 | ||||||||||||
Mortgage payables | 8 | 29 | 6.00% | June 2009 | ||||||||||||
Total BFC borrowings | 8 | 29 | ||||||||||||||
BankAtlantic borrowings | ||||||||||||||||
Subordinated debentures(1) | 22,000 | 22,000 | LIBOR + 3.45% | November 7, 2012 | ||||||||||||
Mortgage-Backed Bond | 864 | 4,654 | (2) | September 30, 2013 | ||||||||||||
Total BankAtlantic borrowings | 22,864 | 26,654 | ||||||||||||||
Woodbridge Borrowings | ||||||||||||||||
Land acquisition and development | (a | ) | 140,034 | 136,266 | From LIBOR | Range from June | ||||||||||
mortgage notes payable | (e | ) | +2.5% to Fixed | 2011 to October | ||||||||||||
6.88% | 2019 | |||||||||||||||
Commercial development | (b | ) | 71,905 | 76,278 | From LIBOR + | Range from June | ||||||||||
mortgage notes payable | (e | ) | 1.70% to Prime | 2009 to July 2010 | ||||||||||||
Borrowing base facility | (c | ) | 37,458 | 39,674 | Prime | March 2011 | ||||||||||
Other mortgage notes payable | (d | ) | 11,831 | 12,027 | Fixed 5.47% | April 2015 | ||||||||||
Development Bonds | 3,291 | 3,350 | Fixed from 6% | 2035 | ||||||||||||
to 6.13% | ||||||||||||||||
Other borrowings | 381 | 1,143 | Fixed from 2.44% to 9.15% | Range from July 2009 to June 2013 | ||||||||||||
Total Woodbridge borrowings | 264,900 | 268,738 | ||||||||||||||
Total | $ | 287,772 | 295,421 | |||||||||||||
(1) | LIBOR interest rates are indexed to3-month LIBOR and adjust quarterly. | |
(2) | The bonds adjust semi-annually to the ten year treasury constant maturity rate minus 23 basis points. | |
(a) | Core Communities’ land acquisition and development mortgage notes payable are collateralized by inventory of real estate and property and equipment with approximate net carrying values aggregating $174.5 million and $159.2 million as of December 31, 2008 and 2007, respectively. Core has a credit agreement with a financial institution which provides for borrowings of up to $88.9 million. This facility matures in June 2011 and has a loan to value limitation of 55%. As of December 31, 2008, $86.9 million was outstanding with no current availability for further borrowing based on available collateral. Core has a credit agreement with a financial institution which provides for borrowings of up to $33.0 million. This facility matures in October 2019. As of December 31, 2008, $23.2 million was outstanding with no current availability for further borrowing based on available collateral. Core has a credit agreement with a financial institution which provides for borrowing of up to $5.0 million. This facility matures in October 2019. As of December 31, 2008, $4.9 million was outstanding, with no current availability for borrowing based on available collateral. These notes accrue interest, payable monthly, at fixed and varying rates and are tied to various indices as noted above. For certain notes, principal payments are required monthly or quarterly |
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as the note dictates. Core had a $50.0 million revolving credit facility with a loan to value limitation of 75% for construction financing for the development of the Tradition Hilton Head master-planned community which was subsequently modified in 2008 to $25.0 million. This agreement had a provision that required additional principal payments, known as curtailment payments, in the event that actual sales were below the contractual requirements. A curtailment payment of $14.9 million was paid in January 2008. On June 27, 2008, Core modified this loan agreement, terminating the revolving feature of the loan and reducing an approximately $19 million curtailment payment due in June 2008 to $17.0 million, $5.0 million of which was paid in June 2008. The loan was further modified in December 2008, reducing the loan to $25 million, eliminating the curtailment requirements, extending the loan to February 2012 and increasing the rate to Prime Rate plus 1%, with a floor of 5.00%, and the establishment of an interest reserve classified as restricted cash. As of December 31, 2008, $25.0 million was outstanding, with no current availability for borrowing based on available collateral. The facility is due and payable on February 28, 2012. | ||
(b) | Core Communities has three credit agreements with a financial institution which provide for borrowings of up to $80.3 million. As of December 31, 2008, $71.9 million was outstanding, with no current availability for further borrowing based on available collateral. These credit agreements required debt service coverage ratios of up to 1.15. Core also has a credit agreement with a financial institution which provides for borrowing of up to $64.3 million. This facility matures in June 2009 and, as of December 31, 2008 $58.3 million was outstanding with no current availability for borrowing based on available collateral. In July 2008, one of these credit agreements was refinanced by a $9.1 million construction loan. The new loan has an interest rate of30-day LIBOR plus 210 basis points or Prime Rate, a maturity date of July 2010 with a one year extension subject to certain conditions and has an outstanding balance of $8.9 million at December 31, 2008. In 2008, Core extended the maturity of another $6.9 million credit agreement from June 2008 to June 2010, which had an outstanding balance of $4.7 million at December 31, 2008. These notes accrue interest at varying rates tied to various indices as noted above and interest is payable monthly. For certain notes, principal payments are required monthly. Core Communities’ commercial development mortgage notes payable are collateralized by commercial property with approximate net carrying values aggregating $96.1 million and $103.2 million as of December 31, 2008 and 2007, respectively. | |
(c) | Levitt and Sons had a $100.0 million revolving working capital, land acquisition, development and residential construction borrowing base facility agreement with 75% loan to value limitation and borrowed $30.2 million under the facility (the “Carolina Oak Loan”). The proceeds were used to finance the inter-company purchase of a 150 acre parcel in Tradition Hilton Head from Core Communities and to refinance a $15.0 million line of credit. In October 2007, in connection with Woodbridge’s acquisition from Levitt and Sons of the membership interests in Carolina Oak, Woodbridge became the obligor for the entire Carolina Oak Loan $34.1 million outstanding balance at the time of acquisition. The Carolina Oak Loan was modified in connection with the acquisition and had an outstanding balance of $37.5 million at December 31, 2008. The Carolina Oak Loan is collateralized by a first mortgage on the 150 acre parcel in Tradition, Hilton Head which had approximate net carrying values aggregating $27.6 million and $38.5 million as of December 31, 2008 and 2007, respectively. The Carolina Oak Loan is due and payable on March 21, 2011 and may be extended at the lender’s sole discretion on the anniversary date of the facility. Interest accrues at the Prime Rate and is payable monthly. At December 31, 2008, there was no availability to draw on this facility based on available collateral. | |
(d) | Woodbridge entered into a mortgage note payable agreement with a financial institution in March 2005 to repay the bridge loan used to temporarily fund Woodbridge’s purchase of an office building in Fort Lauderdale. This note payable is collateralized by the office building which had approximate net carrying values aggregating $13.7 million and $14.2 million as of December 31, 2008 and 2007, respectively. The note payable contains a balloon payment requirements of approximately $10.4 million at the maturity date in April 2015. Principal and interest are payable monthly. |
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(e) | Core Communities’ credit facilities generally require it to maintain minimum net worth and minimum working capital levels, the most restrictive of which is a minimum net worth of $75 million and minimum liquidity of $7.5 million. |
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December 31, | Beginning | |||||||||||||||||||||
2008 | 2007 | Optional | ||||||||||||||||||||
Issue | Outstanding | Outstanding | Interest | Maturity | Redemption | |||||||||||||||||
Junior Subordinated Debentures | Date | Amount | Amount | Rate | Date | Date | ||||||||||||||||
BBX Capital Trust I(A) | 06/26/2007 | $ | 25,774 | 25,774 | LIBOR + 1.45% | 09/15/2037 | 09/15/2012 | |||||||||||||||
BBX Capital Trust II(A) | 09/20/2007 | 5,155 | 5,155 | LIBOR + 1.50% | 12/15/2037 | 12/15/2012 | ||||||||||||||||
BBX Capital Trust II | 03/05/2002 | 57,088 | 57,088 | 8.50% | 03/31/2032 | 03/31/2007 | ||||||||||||||||
BBX Capital Trust III | 06/26/2002 | 25,774 | 25,774 | LIBOR + 3.45% | 06/26/2032 | 06/26/2007 | ||||||||||||||||
BBX Capital Trust IV | 09/26/2002 | 25,774 | 25,774 | LIBOR + 3.40% | 09/26/2032 | 09/26/2007 | ||||||||||||||||
BBX Capital Trust V | 09/27/2002 | 10,310 | 10,310 | LIBOR + 3.40% | 09/30/2032 | 09/27/2007 | ||||||||||||||||
BBX Capital Trust VI | 12/10/2002 | 15,450 | 15,450 | LIBOR + 3.35% | 12/10/2032 | 12/10/2007 | ||||||||||||||||
BBX Capital Trust VII | 12/19/2002 | 25,774 | 25,774 | LIBOR + 3.25% | 12/19/2032 | 12/19/2007 | ||||||||||||||||
BBX Capital Trust VIII | 12/19/2002 | 15,464 | 15,464 | LIBOR + 3.35% | 01/07/2033 | 12/19/2007 | ||||||||||||||||
BBX Capital Trust IX | 12/19/2002 | 10,310 | 10,310 | LIBOR + 3.35% | 01/07/2033 | 12/19/2007 | ||||||||||||||||
BBX Capital Trust X | 03/26/2003 | 51,548 | 51,548 | LIBOR + 3.15% | 03/26/2033 | 03/26/2008 | ||||||||||||||||
BBX Capital Trust XI | 04/10/2003 | 10,310 | 10,310 | LIBOR + 3.25% | 04/24/2033 | 04/24/2008 | ||||||||||||||||
BBX Capital Trust XII | 03/27/2003 | 15,464 | 15,464 | LIBOR + 3.25% | 04/07/2033 | 04/07/2008 | ||||||||||||||||
Total BankAtlantic Bancorp | 294,195 | 294,195 | ||||||||||||||||||||
Unsecured junior subordinated debentures — Levitt Capital Trust I (“LCT I”) | 03/15/2005 | 23,196 | 23,196 | From fixed 8.11% to LIBOR + 3.85% | 03/01/2035 | 3/15/2010 | ||||||||||||||||
Unsecured junior subordinated debentures — Levitt Capital Trust II (“LCT II”) | 05/04/2005 | 30,928 | 30,928 | From fixed 8.09% to LIBOR + 3.80% | 06/30/2035 | 05/04/2010 | ||||||||||||||||
Unsecured junior subordinated debentures — Levitt Capital Trust III (“LCT III”) | 06/01/2006 | 15,464 | 15,464 | From fixed 9.25% to LIBOR + 3.80% | 06/30/2036 | 06/30/2011 | ||||||||||||||||
Unsecured junior subordinated debentures — Levitt Capital Trust IV (“LCTIV”) | 07/18/2006 | 15,464 | 15,464 | From fixed 9.35% to LIBOR + 3.80% | 09/30/2036 | 09/30/2011 | ||||||||||||||||
Total Woodbridge | 85,052 | 85,052 | ||||||||||||||||||||
Purchase Accounting | (3,143 | ) | (24 | ) | ||||||||||||||||||
Total Junior Subordinated Debentures | $ | 376,104 | 379,223 | |||||||||||||||||||
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Consolidated | ||||
December 31, 2008 | ||||
Year ended December 31, | ||||
2009 | $ | 3,575 | ||
2010 | 8,713 | |||
2011 | 188,520 | |||
2012 | 48,309 | |||
2013 | 2,129 | |||
Thereafter | 412,630 | |||
$ | 663,876 | |||
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23. | Stock Based Compensation |
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Weighted Average | ||||||||
for the Twelve Months Ended | ||||||||
December 31, | ||||||||
2007 | 2006 | |||||||
Employees | ||||||||
Expected volatility | 43.05 | % | 44.22 | % | ||||
Expected dividends | 0 | % | 0 | % | ||||
Expected term (in years) | 7.5 | 7.5 | ||||||
Average risk-free interest rate | 4.94 | % | 5.01 | % | ||||
Option value | $ | 2.34 | $ | 3.54 |
Weighted Average | ||||||||
for the Twelve Months Ended | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
Non-Employees-Directors | ||||||||
Volatility | 50.81 | % | 43.05 | % | ||||
Expected dividends | 0.00 | % | 0.00 | % | ||||
Expected term (in years) | 5.00 | 5.00 | ||||||
Risk-free rate | 3.35 | % | 4.89 | % | ||||
Option value | $ | 0.40 | $ | 1.99 |
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Weighted | Weighted | |||||||||||||||
Average | Average | Aggregate | ||||||||||||||
Outstanding | Exercise | Remaining | Intrinsic | |||||||||||||
Options | Price | Contractual Term | Value ($000) | |||||||||||||
Outstanding at December 31, 2005 | 5,299,569 | $ | 2.92 | 3.12 | ||||||||||||
Exercised | (3,928,982 | ) | 2.32 | |||||||||||||
Forfeited | — | 0.00 | ||||||||||||||
Expired | — | 0.00 | ||||||||||||||
Granted | 236,500 | 6.36 | ||||||||||||||
Outstanding at December 31, 2006 | 1,607,087 | $ | 4.88 | 6.25 | $ | — | ||||||||||
Exercised | (129,769 | ) | 1.45 | |||||||||||||
Forfeited | (18,397 | ) | 4.99 | |||||||||||||
Expired | — | 0.00 | ||||||||||||||
Granted | 264,296 | 4.44 | ||||||||||||||
Outstanding at December 31, 2007 | 1,723,217 | $ | 5.07 | 6.31 | $ | — | ||||||||||
Exercised | — | 0.00 | ||||||||||||||
Forfeited | (30,000 | ) | 6.04 | |||||||||||||
Expired | (147,407 | ) | 3.68 | |||||||||||||
Granted | 252,150 | 0.83 | ||||||||||||||
Outstanding at December 31, 2008 | 1,797,960 | $ | 4.57 | 6.35 | $ | — | ||||||||||
Exercisable at December 31, 2008 | 881,158 | $ | 1.89 | 5.83 | $ | — | ||||||||||
Available for grant at December 31, 2008 | 2,015,804 | |||||||||||||||
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Weighted | ||||||||
Unvested | Average | |||||||
Restricted | Grant Date | |||||||
Stock | Fair Value | |||||||
Outstanding at December 31, 2005 | 11,262 | $ | 5.52 | |||||
Granted | 30,028 | 6.66 | ||||||
Vested | (26,276 | ) | 6.29 | |||||
Forfeited | — | — | ||||||
Outstanding at December 31, 2006 | 15,014 | $ | 6.65 | |||||
Granted | 22,522 | 4.44 | ||||||
Vested | (28,152 | ) | 3.71 | |||||
Forfeited | — | — | ||||||
Outstanding at December 31, 2007 | 9,384 | $ | 5.62 | |||||
Granted | 120,480 | 0.83 | ||||||
Vested | (79,664 | ) | 0.60 | |||||
Forfeited | — | — | ||||||
Outstanding at December 31, 2008 | 50,200 | $ | 1.26 | |||||
Stock Option Plans | ||||||||||||||||||||
Maximum | Shares | Class of | Vesting | Type of | ||||||||||||||||
Term | Authorized(3) | Stock | Requirements | Options(2) | ||||||||||||||||
1996 Stock Option Plan | 10 years | 449,219 | Class A | 5 Years(1 | ) | ISO, NQ | ||||||||||||||
1999 Non-qualifying Stock Option Plan | 10 years | 172,500 | Class A | (1 | ) | NQ | ||||||||||||||
1999 Stock Option Plan | 10 years | 172,500 | Class A | (1 | ) | ISO, NQ | ||||||||||||||
2000 Non-qualifying Stock Option Plan | 10 years | 340,830 | Class A | immediately | NQ | |||||||||||||||
2001 Amended and Restated Stock Option Plan | 10 years | 783,778 | Class A | 5 Years(1 | ) | ISO, NQ | ||||||||||||||
2005 Restricted Stock and Option Plan(4) | 10 years | 1,200,000 | Class A | 5 Years(1 | ) | ISO, NQ |
(1) | Vesting is established by the BankAtlantic Bancorp Compensation Committee in connection with each grant of options or restricted stock. All directors’ stock options vest immediately. | |
(2) | ISO — Incentive Stock Option NQ — Non-qualifying Stock Option |
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(3) | During 2001 all shares remaining available for grant under all stock options plans except the 2001 stock option plan were canceled. During 2005 all shares remaining available for grant under the 2001 stock option plan were canceled. | |
(4) | The 2005 Restricted Stock and Option Plan provides that up to 1,200,000 shares of BankAtlantic Bancorp Class A common stock may be issued for restricted stock awards and upon the exercise of options granted under the Plan. |
Class A | Weighted | |||||||
Non-vested | Average | |||||||
Restricted | Grant date | |||||||
Stock | Fair Value | |||||||
Outstanding at December 31, 2005 | 26,527 | $ | 40.00 | |||||
Vested | (6,965 | ) | 55.60 | |||||
Forfeited | — | — | ||||||
Granted | 6,278 | 73.68 | ||||||
Outstanding at December 31, 2006 | 25,840 | 43.95 | ||||||
Vested | (7,583 | ) | 48.93 | |||||
Forfeited | — | — | ||||||
Granted | 12,432 | 42.18 | ||||||
Outstanding at December 31, 2007 | 30,689 | 42.01 | ||||||
Vested | (10,295 | ) | 33.77 | |||||
Forfeited | — | — | ||||||
Granted | 5,455 | 9.70 | ||||||
Outstanding at December 31, 2008 | 25,849 | $ | 38.47 | |||||
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Weighted Average | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Volatility | 46.09 | % | 29.44 | % | 31.44 | % | ||||||
Expected dividends | 1.03 | % | 1.75 | % | 1.03 | % | ||||||
Expected term (in years) | 5.00 | 7.23 | 7.45 | |||||||||
Risk-free rate | 3.29 | % | 4.92 | % | 5.19 | % |
Weighted | Weighted | |||||||||||||||
Class A | Average | Average | Aggregate | |||||||||||||
Outstanding | Exercise | Remaining | Intrinsic | |||||||||||||
Options | Price | Contractual Term | Value ($000) | |||||||||||||
Outstanding at December 31, 2005 | 1,207,851 | $ | 45.40 | 5.7 | ||||||||||||
Exercised | (291,948 | ) | 20.65 | |||||||||||||
Forfeited | (51,955 | ) | 67.90 | |||||||||||||
Expired | (6,420 | ) | 46.49 | |||||||||||||
Granted | 190,254 | 73.75 | ||||||||||||||
Outstanding at December 31, 2006 | 1,047,782 | 56.45 | 6.4 | |||||||||||||
Exercised | (88,227 | ) | 27.75 | |||||||||||||
Forfeited | (75,486 | ) | 67.95 | |||||||||||||
Expired | (15,820 | ) | 59.25 | |||||||||||||
Granted | 196,249 | 46.79 | ||||||||||||||
Outstanding at December 31, 2007 | 1,064,498 | 56.17 | 6.2 | |||||||||||||
Exercised | (6,630 | ) | 15.60 | |||||||||||||
Forfeited | (126,678 | ) | 74.81 | |||||||||||||
Expired | (111,526 | ) | 30.50 | |||||||||||||
Granted | 75,954 | 9.70 | ||||||||||||||
Outstanding at December 31, 2008 | 895,618 | 53.09 | 5.8 | $ | — | |||||||||||
Exercisable at December 31, 2008 | 441,589 | $ | 31.87 | 4.4 | $ | — | ||||||||||
Available for grant at December 31, 2008 | 704,726 | |||||||||||||||
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Weighted | Weighted Average | |||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||
Number | Exercise | Contractual | Intrinsic | |||||||||||||
of Options | Price | Term | Value | |||||||||||||
(Thousands) | ||||||||||||||||
Options outstanding at December 31, 2006 | 378,521 | $ | 103.65 | $ | — | |||||||||||
Granted | 150,489 | 45.92 | — | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | 156,478 | 88.56 | — | |||||||||||||
Options outstanding at December 31, 2007 | 372,532 | $ | 86.66 | 8.00 years | — | |||||||||||
Granted | 36,398 | 6.70 | — | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | 90,459 | 81.85 | — | |||||||||||||
Options outstanding at December 31, 2008 | 318,471 | $ | 78.89 | 7.19 years | $ | — | ||||||||||
Options exercisable at December 31, 2008 | 69,822 | $ | 40.20 | 8.36 years | $ | — | ||||||||||
Stock options available for equity compensation grants at December 31, 2008 | 281,529 | |||||||||||||||
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Year Ended | Year Ended | Year Ended | ||||
December 31, 2008 | December 31, 2007 | December 31, 2006 | ||||
Expected volatility | 65.47% | 40.05% - 52.59% | 37.37% - 39.80% | |||
Expected dividend yield | 0.00% | 0.00% - 0.83% | 0.39% - 0.61% | |||
Risk-free interest rate | 4.16% | 4.58% - 5.14% | 4.57% - 5.06% | |||
Expected life | 5 years | 5 — 7.5 years | 5 — 7.5 years | |||
Forfeiture rate — executives | 5% | 5% | 5% | |||
Forfeiture rate — non-executives | — | 10% | 10% |
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Weighted Average | Weighted Average | Aggregate | ||||||||||||||
Grant Date | Remaining | Intrinsic | ||||||||||||||
Number of Options | Fair Value | Contractual Term | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Non-vested at December 31, 2006 | 358,660 | $ | 103.97 | $ | — | |||||||||||
Grants | 150,489 | 45.92 | — | |||||||||||||
Vested | 13,563 | 45.80 | — | |||||||||||||
Forfeited | 156,478 | 88.56 | — | |||||||||||||
Non-vested at December 31, 2007 | 339,108 | 87.64 | 7.98 years | — | ||||||||||||
Grants | 36,398 | 6.70 | — | |||||||||||||
Vested | 36,398 | 6.70 | — | |||||||||||||
Forfeited | 90,459 | 81.85 | — | |||||||||||||
Non-vested at December 31, 2008 | 248,649 | $ | 89.75 | 6.86 years | $ | — | ||||||||||
24. | Pension, Profit Sharing Plan, 401(k) Plans and Deferred Retirement Agreement |
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As of December 31, | ||||||||
2008 | 2007 | |||||||
Change in benefit obligation | ||||||||
Benefit obligation at the beginning of the year | $ | 28,918 | 29,620 | |||||
Interest cost | 1,720 | 1,656 | ||||||
Actuarial loss (gain) | 1,549 | (1,403 | ) | |||||
Benefits paid | (1,037 | ) | (955 | ) | ||||
Projected benefit obligation at end of year | 31,150 | 28,918 | ||||||
Change in plan assets | ||||||||
Fair value of Plan assets at the beginning of year | 29,104 | 28,626 | ||||||
Actual return on Plan assets | (10,146 | ) | 1,433 | |||||
Employer contribution | — | — | ||||||
Benefits paid | (1,037 | ) | (955 | ) | ||||
Fair value of Plan assets as of actuarial date | 17,921 | 29,104 | ||||||
Funded status at end of year | $ | (13,229 | ) | 186 | ||||
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Net comprehensive loss | $ | 19,690 | 3,915 | 4,493 | ||||||||
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As of December 31, | ||||||||
2008 | 2007 | |||||||
Projected benefit obligation | $ | 31,150 | 28,918 | |||||
Accumulated benefit obligation | 31,150 | 28,918 | ||||||
Fair value of plan assets | 17,921 | 29,104 |
For the Years Ended | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Interest cost on projected benefit obligation | $ | 1,719 | 1,656 | 1,624 | ||||||||
Expected return on plan assets | (2,430 | ) | (2,396 | ) | (2,190 | ) | ||||||
Amortization of unrecognized net gains and losses | 463 | 501 | 933 | |||||||||
Net periodic pension (income) expense(1) | $ | (248 | ) | (239 | ) | 367 | ||||||
Other changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ||||||||||||
Change in funding status | (13,415 | ) | 1,180 | 2,236 | ||||||||
Change in deferred tax assets | (2,112 | ) | (363 | ) | (1,204 | ) | ||||||
Total recognized net periodic benefit cost and other comprehensive income | $ | (15,775 | ) | 578 | 1,399 | |||||||
(1) | The estimated net loss for the Plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $1.6 million. |
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Weighted average discount rate used to determine benefit obligation | 6.00 | % | 6.00 | % | 5.75 | % | ||||||
Weighted average discount rate used to to determine net periodic benefit cost | 6.00 | % | 5.75 | % | 5.50 | % | ||||||
Rate of increase in future compensation levels | N/A | N/A | N/A | |||||||||
Expected long-term rate of return | 8.50 | % | 8.50 | % | 8.50 | % |
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Quoted Prices | ||||
in Active Markets | ||||
for Identical | ||||
Assets | ||||
Asset Category | (Level 1) | |||
Cash | $ | 382 | ||
Mutual Funds:(1) | ||||
US Large Cap Growth | 1,581 | |||
US Large Cap Value | 758 | |||
US Large Cap Blend | 1,680 | |||
US Mid-Cap Growth | 450 | |||
US Mid-Cap Value | 811 | |||
US Mid-Cap Blend | 638 | |||
International Equity | 2,784 | |||
Balanced | 8,235 | |||
Common Stock(2) | 602 | |||
Total pension assets | $ | 17,921 | ||
(1) | The Plan maintains diversified mutual funds in order to diversify risks and reduce volatility while achieving the targeted asset mix. | |
(2) | This category invests in aggressive growth common stocks. |
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Pension | ||||
Expected Future Service | Benefits | |||
2009 | $ | 1,269 | ||
2010 | 1,480 | |||
2011 | 1,515 | |||
2012 | 1,570 | |||
2013 | 1,659 | |||
Years2014-2018 | 9,847 |
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Employee salary contribution Limit(1) | $ | 15.5 | 15 | 15 | ||||||||
Percentage of salary limitation | 75 | % | 75 | % | 75 | % | ||||||
Total match contribution(2) | $ | 2,551 | 2,930 | 2,461 | ||||||||
Vesting of employer match | Immediate | Immediate | Immediate |
(1) | For the year ended December 31, 2008, employees over the age of 50 were entitled to contribute $20,500. For each of the years in the two year period ended December 31, 2007, employees over the age of 50 were entitled to contribute $20,000. | |
(2) | The employer matched 100% of the first 3% of employee contributions and 50% of the next 2% of employee contributions. |
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25. | Income Taxes |
For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Continuing operations | $ | 15,763 | (69,012 | ) | (530 | ) | ||||||
Discontinued operations | — | (3,472 | ) | (8,957 | ) | |||||||
Extraordinary items | — | 1,509 | — | |||||||||
Total provision (benefit) for income taxes | $ | 15,763 | (70,975 | ) | (9,487 | ) | ||||||
Continuing operations: | ||||||||||||
Current: | ||||||||||||
Federal | $ | (2,880 | ) | (33,941 | ) | 13,511 | ||||||
State | (1 | ) | 2 | 946 | ||||||||
(2,881 | ) | (33,939 | ) | 14,457 | ||||||||
Deferred: | ||||||||||||
Federal | 14,308 | (28,281 | ) | (13,977 | ) | |||||||
State | 4,336 | (6,792 | ) | (1,010 | ) | |||||||
18,644 | (35,073 | ) | (14,987 | ) | ||||||||
Provision (benefit) for income taxes | $ | 15,763 | (69,012 | ) | (530 | ) | ||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2008(1) | 2007(1) | 2006(1) | ||||||||||||||||||||||
Income tax provision at expected federal income tax rate of 35% | $ | (115,309 | ) | (35.00 | )% | $ | (112,377 | ) | (35.00 | )% | $ | 4,263 | 35.00 | % | ||||||||||
Increase (decrease) resulting from: | ||||||||||||||||||||||||
Taxes related to subsidiaries not consolidated for income tax purposes | (43,000 | ) | (13.05 | ) | (16,263 | ) | (5.07 | ) | 1,508 | 12.38 | ||||||||||||||
Provision (benefit) for state taxes, net of federal effect | (12,949 | ) | (3.93 | ) | (14,510 | ) | (4.52 | ) | (939 | ) | (7.71 | ) | ||||||||||||
Increase in valuation allowance | 190,516 | 57.83 | 77,586 | 24.16 | 1,694 | 13.91 | ||||||||||||||||||
Expired NOLs | 1,281 | 0.39 | 1,595 | 0.50 | — | |||||||||||||||||||
Loss from Levitt and Sons | (20,981 | ) | (6.37 | ) | — | — | ||||||||||||||||||
Goodwill impairment adjustment | 16,899 | 5.13 | — | — | 458 | 3.76 | ||||||||||||||||||
Tax-exempt interest income | (152 | ) | (0.05 | ) | (4,180 | ) | (1.30 | ) | (5,110 | ) | (41.96 | ) | ||||||||||||
Other — net | (542 | ) | (0.15 | ) | (863 | ) | (0.27 | ) | (2,404 | ) | (19.74 | ) | ||||||||||||
Provision for income taxes | $ | 15,763 | 4.78 | % | $ | (69,012 | ) | (21.49 | )% | $ | (530 | ) | (4.35 | )% | ||||||||||
(1) | Expected tax is computed based upon income (loss) from continuing operations before noncontrolling interest. |
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For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Deferred tax assets: | ||||||||||||
Allowance for loans, REO, tax certificate losses and other reserves, for financial statement purposes | $ | 49,642 | 38,786 | 20,546 | ||||||||
Federal and State net operating loss carryforward | 141,113 | 51,645 | 30,191 | |||||||||
Investment in Levitt and Sons | 46,393 | 68,339 | — | |||||||||
Compensation expensed for books and deferred for tax purposes | 779 | 410 | 13,099 | |||||||||
Real estate held for development and sale capitalized costs for tax purposes in excess of amounts capitalized for financial statement purposes | 1,204 | 2,358 | 6,579 | |||||||||
Real estate valuation | 1,295 | — | 12,889 | |||||||||
Accumulated other comprehensive income | 2,906 | — | 896 | |||||||||
Share based compensation | 3,982 | 3,073 | 1,922 | |||||||||
Income recognized for tax purposes and deferred for financial statement purposes | 7,510 | 7,228 | 6,949 | |||||||||
Investment in securities | 5,965 | — | — | |||||||||
Investment in Bluegreen | 11,135 | — | — | |||||||||
Other | 10,337 | 8,715 | 5,000 | |||||||||
Total gross deferred tax assets | 282,261 | 180,554 | 98,071 | |||||||||
Valuation allowance | (272,765 | ) | (84,028 | ) | (5,035 | ) | ||||||
Total deferred tax assets | 9,496 | 96,526 | 93,036 | |||||||||
Deferred tax liabilities: | ||||||||||||
Subsidiaries not consolidated for income tax purposes | — | 39,592 | 55,404 | |||||||||
Investment in Bluegreen | — | 21,768 | 19,501 | |||||||||
Deferred loan income | 1,468 | 1,993 | 1,956 | |||||||||
Purchase accounting adjustments | 427 | 2,830 | 1,929 | |||||||||
Accumulated other comprehensive income | — | 3,618 | 853 | |||||||||
Prepaid pension expense | 2,625 | 2,530 | 2,438 | |||||||||
Property and equipment | 3,073 | 3,789 | 3,670 | |||||||||
Other | 1,903 | 4,077 | 1,518 | |||||||||
Total gross deferred tax liabilities | 9,496 | 80,198 | 87,269 | |||||||||
Net deferred tax asset | — | 16,329 | 5,768 | |||||||||
Less net deferred tax asset at beginning of period | (16,329 | ) | (5,768 | ) | 10,693 | |||||||
Net deferred tax liability acquired due to purchase accounting | (39 | ) | 1,866 | — | ||||||||
Implementation of FIN 48 | — | (1,798 | ) | — | ||||||||
Increase (decrease) in deferred tax liability from subsidiaries other capital transactions | 2,009 | 14 | (177 | ) | ||||||||
Reduction in deferred tax asset associated with Stifel Ryan Beck | — | 16,593 | — | |||||||||
(Decrease) increase in BFC’s accumulated other comprehensive income | (981 | ) | 95 | 580 | ||||||||
Increase in Woodbridge’s accumulated other comprehensive income | — | 894 | 600 | |||||||||
(Decrease) increase in BankAtlantic Bancorp accumulated other comprehensive income | (3,304 | ) | 4,200 | 3,161 | ||||||||
(Provision) benefit for deferred income taxes | (18,644 | ) | 32,424 | 20,625 | ||||||||
Less: Provision (benefit) for deferred income taxes — discontinued operations | — | 1,139 | (5,638 | ) | ||||||||
Less: Provision for deferred income taxes — extraordinary income | — | 1,509 | — | |||||||||
Provision (benefit) for deferred income taxes — continuing operations | $ | (18,644 | ) | 35,073 | 14,987 | |||||||
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For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Balance, beginning of period | $ | 84,028 | 5,035 | 3,341 | ||||||||
Other comprehensive loss | (2,538 | ) | — | — | ||||||||
Increase in deferred tax valuation allowance | 190,516 | 77,586 | 1,694 | |||||||||
Increase in deferred tax allowance — paid in capital | 759 | 1,407 | — | |||||||||
Balance, end of period | $ | 272,765 | 84,028 | 5,035 | ||||||||
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Expiration Year | State | Federal | ||||||
2011 | $ | 1,662 | 1,831 | |||||
2012 | 669 | 984 | ||||||
2021 | 806 | 1,422 | ||||||
2022 | 824 | 1,515 | ||||||
2023 | 2,008 | 3,792 | ||||||
2024 | 28,059 | 34,714 | ||||||
2025 | 4,964 | 5,797 | ||||||
2026 | 18,497 | 18,531 | ||||||
2027 | 6,835 | 6,843 | ||||||
2028 | 4,748 | 4,754 | ||||||
Totals | $ | 69,072 | 80,183 | |||||
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For the Years Ended | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
Balance as of beginning of period | $ | 2,559 | 2,185 | |||||
Additions based on tax positions related to current year | 542 | 1,322 | ||||||
Additions based on tax positions related to prior year | 74 | 88 | ||||||
Lapse of Statute of Limitations | (575 | ) | — | |||||
Reductions of tax positions for prior years | (29 | ) | (1,036 | ) | ||||
Balance as of end of period | $ | 2,571 | 2,559 | |||||
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26. | Commitments and Contingencies |
Year Ending December 31, | Amount | |||
2009 | 10,503 | |||
2010 | 8,972 | |||
2011 | 7,382 | |||
2012 | 6,404 | |||
2013 | 5,947 | |||
Thereafter | 69,687 | |||
Total | $ | 108,895 | ||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Rental expense for premises and equipment | $ | 14,407 | 16,191 | 13,037 | ||||||||
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December 31, | December 31, | |||||||
2008 | 2007 | |||||||
BFC Activities | ||||||||
Guaranty agreements | $ | 38,000 | 59,112 | |||||
Financial Services | ||||||||
Commitments to sell fixed rate residential loans | 25,304 | 21,029 | ||||||
Commitments to sell variable rate residential loans | — | 1,518 | ||||||
Commitments to purchase variable rate residential loans | — | 39,921 | ||||||
Commitments to purchase fixed rate residential loans | — | 21,189 | ||||||
Commitments to originate loans held for sale | 21,843 | 18,344 | ||||||
Commitments to originate loans held to maturity | 16,553 | 158,589 | ||||||
Commitments to extend credit, including the undisbursed portion of loans in process | 597,739 | 992,838 | ||||||
Standby letters of credit | 20,558 | 41,151 | ||||||
Commercial lines of credit | 66,954 | 96,786 | ||||||
Real Estate Development | ||||||||
Continued Agreement of Indemnity- surety bonds | 19,900 | 19,100 | ||||||
Royalty fee license agreement | 923 | 1,100 |
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27. | Regulatory Matters |
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For Capital | To be Considered | |||||||||||||||||||||||
Actual | Adequacy Purposes | Well Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2008: | ||||||||||||||||||||||||
Total risk-based capital | $ | 456,776 | 11.63 | % | $ | 314,339 | 8.00 | % | $ | 392,923 | 10.00 | % | ||||||||||||
Tier I risk-based capital | 385,006 | 9.80 | 157,169 | 4.00 | 235,754 | 6.00 | ||||||||||||||||||
Tangible capital | 385,006 | 6.80 | 84,929 | 1.50 | 84,929 | 1.50 | ||||||||||||||||||
Core capital | 385,006 | 6.80 | 226,478 | 4.00 | 283,098 | 5.00 | ||||||||||||||||||
As of December 31, 2007: | ||||||||||||||||||||||||
Total risk-based capital | 495,668 | 11.63 | 340,998 | 8.00 | 426,248 | 10.00 | ||||||||||||||||||
Tier I risk-based capital | 420,063 | 9.85 | 170,499 | 4.00 | 255,749 | 6.00 | ||||||||||||||||||
Tangible capital | 420,063 | 6.94 | 90,821 | 1.50 | 90,821 | 1.50 | ||||||||||||||||||
Core capital | 420,063 | 6.94 | 242,190 | 4.00 | 302,738 | 5.00 |
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28. | Parent Company Financial Information |
December 31, | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 9,218 | 17,999 | |||||
Investment securities | 97 | 862 | ||||||
Investment in Benihana Convertible Preferred Stock | 16,426 | 20,000 | ||||||
Investment in venture partnerships | 361 | 864 | ||||||
Investment in BankAtlantic Bancorp, Inc. | 66,326 | 108,173 | ||||||
Investment in Woodbridge Holdings Corporation | 35,575 | 54,637 | ||||||
Investment in and advances to wholly owned subsidiaries | 2,323 | 1,578 | ||||||
Loans receivable | — | 3,782 | ||||||
Other assets | 835 | 906 | ||||||
Total assets | $ | 131,161 | 208,801 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Advances from and negative basis in wholly owned subsidiaries | $ | 789 | 3,174 | |||||
Other liabilities | 6,476 | 7,722 | ||||||
Deferred income taxes | — | 13,868 | ||||||
Total liabilities | 7,265 | 24,764 | ||||||
Redeemable 5% Cumulative Preferred Stock | 11,029 | — | ||||||
Shareholders’ equity | 112,867 | 184,037 | ||||||
Total liabilities and shareholders’ equity | $ | 131,161 | 208,801 | |||||
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For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 2,489 | 3,977 | 2,232 | ||||||||
Expenses | 11,405 | 9,565 | 8,413 | |||||||||
(Loss) before earnings (loss) from subsidiaries | (8,916 | ) | (5,588 | ) | (6,181 | ) | ||||||
Equity from (loss) earnings in BankAtlantic Bancorp | (56,230 | ) | (7,206 | ) | 5,807 | |||||||
Equity from loss in Woodbridge | (22,261 | ) | (39,622 | ) | (1,519 | ) | ||||||
Equity from earnings (loss) in other subsidiaries | 15 | (1,083 | ) | (658 | ) | |||||||
Loss before income taxes | (87,392 | ) | (53,499 | ) | (2,551 | ) | ||||||
Benefit for income taxes | (14,887 | ) | (19,599 | ) | (1,854 | ) | ||||||
Loss from continuing operations attributable to BFC | (72,505 | ) | (33,900 | ) | (697 | ) | ||||||
Equity in subsidiaries’ discontinued operations, net of tax | 4,461 | 1,038 | (1,524 | ) | ||||||||
Extraordinary gain, net of tax | 9,145 | 2,403 | — | |||||||||
Net loss attributable to BFC | (58,899 | ) | (30,459 | ) | (2,221 | ) | ||||||
5% Preferred Stock dividends | (750 | ) | (750 | ) | (750 | ) | ||||||
Net loss allocable to common stock | $ | (59,649 | ) | (31,209 | ) | (2,971 | ) | |||||
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For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Operating Activities: | ||||||||||||
Net cash used in operating activities | $ | (5,508 | ) | (4,505 | ) | (3,041 | ) | |||||
�� | ||||||||||||
Investing Activities: | ||||||||||||
Proceeds from sale of investment in real estate limited partnership | — | 1,000 | — | |||||||||
Proceeds from the sale of securities | 834 | 1,336 | — | |||||||||
Distribution from partnership | 633 | — | — | |||||||||
Investment in real estate limited partnership | — | — | (1,000 | ) | ||||||||
Additions to property and equipment | (11 | ) | — | 77 | ||||||||
Acquisition of Woodbridge Class A shares | — | (33,205 | ) | — | ||||||||
Acquisition of BankAtlantic Bancorp Class A shares | (3,925 | ) | — | — | ||||||||
Net cash used in investing activities | (2,469 | ) | (30,869 | ) | (923 | ) | ||||||
Financing Activities: | ||||||||||||
Proceeds from issuance of Class A Common Stock net of issuance costs | — | 36,121 | — | |||||||||
Proceeds from issuance of Common Stock upon exercise of stock option | — | 187 | — | |||||||||
Purchase and retirement of the Company’s Class A common stock | (54 | ) | — | — | ||||||||
Payment of the minimum withholding tax upon the exercise of stock options | — | — | (4,154 | ) | ||||||||
5% Preferred Stock dividends paid | (750 | ) | (750 | ) | (750 | ) | ||||||
Net cash (used in) provided by financing activities | (804 | ) | 35,558 | (4,904 | ) | |||||||
(Decrease) increase in cash and cash equivalents | (8,781 | ) | 184 | (8,868 | ) | |||||||
Cash at beginning of period | 17,999 | 17,815 | 26,683 | |||||||||
Cash at end of period | $ | 9,218 | 17,999 | 17,815 | ||||||||
Supplementary disclosure of non-cash investing and financing activities | ||||||||||||
Net increase (decrease) in shareholders’ equity from the effect | ||||||||||||
of subsidiaries capital transactions, net of income taxes | $ | 2,398 | (101 | ) | (16 | ) | ||||||
(Decrease) increase in accumulated other comprehensive income, net of taxes | (3,894 | ) | 145 | 926 | ||||||||
Decrease in additional paid in capital from the re-classification of the 5% Preferred Stock to Redeemable Preferred Stock | 11,029 | — | — | |||||||||
Issuance and retirement of Common Stock accepted as consideration for the exercise price of stock options | — | — | 4,154 | |||||||||
Cumulative effect adjustment upon adoption of FASB Interpretation No. 48 | — | 121 | — |
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29. | Noncontrolling Interest |
December 31, | ||||||||
2008 | 2007 | |||||||
BankAtlantic Bancorp | $ | 170,888 | 351,148 | |||||
Woodbridge | 91,389 | 207,138 | ||||||
Other subsidiaries | 277 | 664 | ||||||
$ | 262,554 | 558,950 | ||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Noncontrolling interest — Continuing Operations: | ||||||||||||
BankAtlantic Bancorp | $ | (161,416 | ) | (22,806 | ) | 21,072 | ||||||
Woodbridge | (111,307 | ) | (195,325 | ) | (7,643 | ) | ||||||
Other subsidiaries | 12 | (34 | ) | (23 | ) | |||||||
(272,711 | ) | (218,165 | ) | 13,406 | ||||||||
Noncontrolling interest — Discontinued Operations: | ||||||||||||
BankAtlantic Bancorp | 12,144 | 6,122 | (9,011 | ) | ||||||||
Woodbridge | — | — | — | |||||||||
Other subsidiaries | — | — | — | |||||||||
12,144 | 6,122 | (9,011 | ) | |||||||||
Net (loss) income attributable to noncontrolling interest | $ | (260,567 | ) | (212,043 | ) | 4,395 | ||||||
30. | Litigation |
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31. | Fair Value Measurement |
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Fair Value Measurements at December 31, 2008 Using: | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
December 31, | Assets | Inputs | Inputs | |||||||||||||
Description | 2008 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Mortgage-backed securities | $ | 532,873 | — | 532,873 | — | |||||||||||
REMICS | 166,351 | — | 166,351 | — | ||||||||||||
Bonds | 250 | — | — | 250 | ||||||||||||
Benihana Convertible Preferred Stock | 16,426 | — | — | 16,426 | ||||||||||||
Other equity securities | 6,798 | 5,210 | — | 1,588 | ||||||||||||
Total securities available for sale at fair value | $ | 722,698 | 5,210 | 699,224 | 18,264 | |||||||||||
Benihana | ||||||||||||||||||||
Stifel | Convertible | Equity | ||||||||||||||||||
Bonds | Warrants | Preferred Stock | Securities | Total | ||||||||||||||||
Beginning Balance | $ | 681 | 10,661 | 20,000 | 5,133 | 36,475 | ||||||||||||||
Total gains and losses (realized/unrealized) | ||||||||||||||||||||
Included in earnings (or changes in net assets) | — | 3,704 | (3,574 | ) | (3,412 | ) | (3,282 | ) | ||||||||||||
Included in other comprehensive Income | 1 | — | — | (133 | ) | (132 | ) | |||||||||||||
Purchases, issuances, and settlements | (432 | ) | (14,365 | ) | — | — | (14,797 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | |||||||||||||||
Ending balance | $ | 250 | — | 16,426 | 1,588 | 18,264 | ||||||||||||||
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Fair Value Measurements at December 31, 2008 | ||||||||||||||||||||
Quoted Prices in | ||||||||||||||||||||
Active Markets | Significant | Significant | ||||||||||||||||||
for Identical | Other Observable | Unobservable | ||||||||||||||||||
December 31, | Assets | Inputs | Inputs | Total | ||||||||||||||||
Description | 2008 | (Level 1) | (Level 2) | (Level 3) | Impairments | |||||||||||||||
Loans measured for impairment using the fair value of the collateral | $ | 209,012 | — | — | 209,012 | 103,193 | ||||||||||||||
Investment in Bluegreen | 29,789 | 29,789 | 94,433 | |||||||||||||||||
Woodbridge’s investment in unconsolidated trusts | 406 | 406 | 2,159 | |||||||||||||||||
Private equity investments | 536 | 536 | 1,148 | |||||||||||||||||
Total | $ | 239,743 | 29,789 | — | 209,954 | 200,933 | ||||||||||||||
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December 31, 2008 | December 31, 2007 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 278,937 | 278,937 | 332,155 | 332,154 | |||||||||||
Restricted cash | 21,288 | 21,288 | 2,207 | 2,207 | ||||||||||||
Securities available for sale | 722,698 | 722,698 | 926,307 | 926,307 | ||||||||||||
Financial instruments | — | — | 10,661 | 10,661 | ||||||||||||
Investment securities | 12,008 | 12,475 | 60,173 | 64,666 | ||||||||||||
Tax Certificates | 213,534 | 244,806 | 188,401 | 188,401 | ||||||||||||
Federal home loan bank stock | 54,607 | 54,607 | 74,003 | 74,003 | ||||||||||||
Loans receivable including loans held for sale, net | 4,317,645 | 3,950,557 | 4,528,538 | 4,614,705 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Deposits | $ | 3,926,368 | 3,926,382 | 3,953,405 | 3,967,256 | |||||||||||
Short term borrowings(1) | 279,726 | 279,777 | 159,905 | 159,905 | ||||||||||||
Advances from FHLB | 967,491 | 983,582 | 1,397,044 | 1,406,728 | ||||||||||||
Subordinated debentures, mortgage and notes Payable | 287,772 | 266,651 | 26,683 | 26,746 | ||||||||||||
Junior subordinated debentures | 376,104 | 152,470 | 674,644 | 625,943 |
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(1) | Short term borrowings includes federal funds purchased and other short term borrowings and securities sold under agreements to repurchase. |
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32. | Certain Relationships and Related Party Transactions |
At December 31, 2008 and | ||||||||||||||||||||
for the Year Ended December 31, 2008 | ||||||||||||||||||||
BankAtlantic | ||||||||||||||||||||
BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Shared service receivable (payable) | (a | ) | $ | 398 | (175 | ) | (115 | ) | (108 | ) | ||||||||||
Shared service income (expense) | (a | ) | $ | 3,157 | (1,593 | ) | (1,135 | ) | (429 | ) | ||||||||||
Facilities cost | (a | ) | $ | (245 | ) | 271 | (101 | ) | 75 | |||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 8 | (80 | ) | 72 | — | ||||||||||||
Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 263 | (4,696 | ) | 4,433 | — |
At December 31, 2007 and | ||||||||||||||||||||
for the Year Ended December 31, 2007 | ||||||||||||||||||||
BankAtlantic | ||||||||||||||||||||
BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Shared service receivable (payable) | (a | ) | $ | 312 | (89 | ) | (119 | ) | (104 | ) | ||||||||||
Shared service income (expense) | (a | ) | $ | 2,855 | (1,406 | ) | (1,006 | ) | (443 | ) | ||||||||||
Facilities cost | (a | ) | $ | (272 | ) | 220 | — | 52 | ||||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 38 | (185 | ) | 147 | — | ||||||||||||
Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 1,217 | (7,335 | ) | 6,118 | — |
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At December 31, 2006 and | ||||||||||||||||||||
for the Year Ended December 31, 2006 | ||||||||||||||||||||
BankAtlantic | ||||||||||||||||||||
BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Shared service receivable (payable) | (a | ) | $ | 312 | (142 | ) | (107 | ) | (63 | ) | ||||||||||
Shared service income (expense) | (a | ) | $ | 2,495 | (1,053 | ) | (1,134 | ) | (308 | ) | ||||||||||
Office facilities cost | (a | ) | $ | (460 | ) | 406 | — | 54 | ||||||||||||
Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 43 | (479 | ) | 436 | — | ||||||||||||
Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 996 | (5,547 | ) | 4,551 | — |
(a) | Pursuant to the terms of shared service agreements between BFC, BankAtlantic Bancorp and Woodbridge, subsidiaries of BFC provide shared service operations in the areas of human resources, risk management, investor relations, executive office administration and other services to BankAtlantic Bancorp and Woodbridge. Additionally, BFC provides certain risk management and administrative services to Bluegreen. The costs of shared services are allocated based upon the usage of the respective services. Also, as part of the shared service arrangement, the Company pays BankAtlantic Bancorp and Bluegreen for office facilities costs relating to the Company and its shared service operations. | |
In May 2008, BFC and BFC Shared Service Corporation (“BFC Shared Service”), a wholly-owned subsidiary of BFC, entered into office lease agreements with BankAtlantic under which BFC and BFC Shared Service pay BankAtlantic an annual rent of approximately $294,000 for office space in BankAtlantic’s corporate headquarters. In May 2008, BFC also entered into an office sub-lease agreement with Woodbridge for office space in BankAtlantic’s corporate headquarters pursuant to which Woodbridge will pay BFC an annual rent of approximately $152,000. | ||
(b) | BFC and Woodbridge entered into securities sold under agreements to repurchase transactions with BankAtlantic in the aggregate of approximately $4.7 million, $7.3 million and $5.5 million at December 31, 2008, 2007 and 2006, respectively. Interest was recognized in connection with the above was approximately $80,000, $185,000 and $479,000 for the years ended December 31, 2008, 2007 and 2006, respectively. These transactions have similar terms as BankAtlantic agreements with unaffiliated parties. Additionally, at December 31, 2008, BankAtlantic facilitated the placement of $49.9 million of FDIC insured certificates of deposits with other insured depository institutions on Woodbridge’s behalf through the Certificate of Deposit Account Registry Service (“CDARS”) program. The CDARS program facilitates the placement of funds into certificates of deposits issued by other financial institutions in increments of less than the standard FDIC insurance maximum to insure that both principal and interest are eligible for full FDIC insurance coverage. |
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Class A | Weighted | |||||||
Common | Average | |||||||
Stock | Price | |||||||
Options outstanding | 53,789 | $ | 48.46 | |||||
Options non-vested | 13,610 | $ | 92.85 |
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33. | Earnings (Loss) per Share |
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For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Basic (loss) earnings per common share | ||||||||||||
Numerator: | ||||||||||||
Income (loss) from continuing operations | $ | (345,216 | ) | (252,065 | ) | 12,709 | ||||||
Noncontrolling interests — continuing operations | 272,711 | 218,165 | (13,406 | ) | ||||||||
Loss attributable to BFC | (72,505 | ) | (33,900 | ) | (697 | ) | ||||||
Preferred stock dividends | (750 | ) | (750 | ) | (750 | ) | ||||||
Loss allocable to common stock | (73,255 | ) | (34,650 | ) | (1,447 | ) | ||||||
Discontinued operations, net of taxes | 16,605 | 7,160 | (10,535 | ) | ||||||||
Noncontrolling interests — discontinued operations | (12,144 | ) | (6,122 | ) | 9,011 | |||||||
Discontinued operations, net of taxes attributable to BFC | 4,461 | 1,038 | (1,524 | ) | ||||||||
Extraordinary gain, net of taxes | 9,145 | 2,403 | — | |||||||||
Noncontrolling interests — extraordinary gain | — | — | — | |||||||||
Extraordinary gain, net of taxes attributable to BFC | 9,145 | 2,403 | — | |||||||||
Net loss allocable to common shareholders | $ | (59,649 | ) | (31,209 | ) | (2,971 | ) | |||||
Denominator: | ||||||||||||
Basic weighted average number of common shares outstanding | 45,097 | 38,778 | 33,249 | |||||||||
Basic (loss) earnings per common share: | ||||||||||||
Loss per share from continuing operations | $ | (1.62 | ) | (0.90 | ) | (0.04 | ) | |||||
Earnings (loss) per share from discontinued operations | 0.10 | 0.03 | (0.05 | ) | ||||||||
Earnings per share from extraordinary gain | 0.20 | 0.06 | — | |||||||||
Basic loss per share | $ | (1.32 | ) | (0.81 | ) | (0.09 | ) | |||||
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For the Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Diluted (loss) earnings per common share: | ||||||||||||
Numerator: | ||||||||||||
Loss allocable to common stock | $ | (73,255 | ) | (34,650 | ) | (1,447 | ) | |||||
Effect of securities issuable by subsidiaries | — | — | (93 | ) | ||||||||
Income (loss) allocable to common stock after assumed dilution | (73,255 | ) | (34,650 | ) | (1,540 | ) | ||||||
Discontinued operations, net of taxes attributable to BFC | 4,461 | 1,038 | (1,524 | ) | ||||||||
Effect of securities issuable by a subsidiary | — | — | — | |||||||||
Discontinued operations allocable to common stock after assumed dilution | 4,461 | 1,038 | (1,524 | ) | ||||||||
Extraordinary gain, net of taxes | 9,145 | 2,403 | — | |||||||||
Effect of securities issuable by a subsidiary | — | — | — | |||||||||
Extraordinary gain allocable to common stock after assumed dilution | 9,145 | 2,403 | — | |||||||||
Net loss allocable to common stock after assumed dilution | $ | (59,649 | ) | (31,209 | ) | (3,064 | ) | |||||
Denominator | ||||||||||||
Basic weighted average number of common shares outstanding | 45,097 | 38,778 | 33,249 | |||||||||
Effect of dilutive stock options and unvested restricted stock | — | — | — | |||||||||
Diluted weighted average number of common shares outstanding | 45,097 | 38,778 | 33,249 | |||||||||
Diluted (loss) earnings per share | ||||||||||||
Loss per share from continuing operations | $ | (1.62 | ) | (0.90 | ) | (0.05 | ) | |||||
Earnings (loss) per share from discontinued operations | 0.10 | 0.03 | (0.05 | ) | ||||||||
Earnings per share from extraordinary gain | 0.20 | 0.06 | — | |||||||||
Diluted loss per share | $ | (1.32 | ) | (0.81 | ) | (0.10 | ) | |||||
34. | Redeemable 5% Cumulative Preferred Stock |
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35. | Common Stock, Preferred Stock and Dividends |
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36. | Selected Quarterly Results (Unaudited) |
First | Second | Third | Fourth | |||||||||||||||||
2008 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Revenues | $ | 119,415 | 129,881 | 134,713 | 103,461 | 487,470 | ||||||||||||||
Costs and expenses | 173,269 | 173,392 | 158,536 | 214,663 | 719,860 | |||||||||||||||
(53,854 | ) | (43,511 | ) | (23,823 | ) | (111,202 | ) | (232,390 | ) | |||||||||||
Equity in earnings from unconsolidated affiliates | 1,803 | 1,443 | 7,178 | 4,640 | 15,064 | |||||||||||||||
Impairment of unconsolidated affiliates | — | — | (53,583 | ) | (42,996 | ) | (96,579 | ) | ||||||||||||
Impairment of investments | — | — | — | (15,548 | ) | (15,548 | ) | |||||||||||||
Loss from continuing operations before income taxes | (52,051 | ) | (42,068 | ) | (70,228 | ) | (165,106 | ) | (329,453 | ) | ||||||||||
Provision (benefit) for income taxes | (18,953 | ) | (15,326 | ) | (12,401 | ) | 62,443 | 15,763 | ||||||||||||
Loss from continuing operations | (33,098 | ) | (26,742 | ) | (57,827 | ) | (227,549 | ) | (345,216 | ) | ||||||||||
Discontinued operations, less income taxes | 1,019 | — | 5,021 | 10,565 | 16,605 | |||||||||||||||
Extraordinary gain, less income taxes | — | — | 9,145 | — | 9,145 | |||||||||||||||
Net loss | (32,079 | ) | (26,742 | ) | (43,661 | ) | (216,984 | ) | (319,466 | ) | ||||||||||
Net loss attributable to noncontrolling interest | (26,208 | ) | (21,826 | ) | (48,870 | ) | (163,663 | ) | (260,567 | ) | ||||||||||
Net (loss) income attributable to BFC | (5,871 | ) | (4,916 | ) | 5,209 | (53,321 | ) | (58,899 | ) | |||||||||||
Preferred stock dividends | (188 | ) | (187 | ) | (187 | ) | (188 | ) | (750 | ) | ||||||||||
Net (loss) income allocable to common shareholders | $ | (6,059 | ) | (5,103 | ) | 5,022 | (53,509 | ) | (59,649 | ) | ||||||||||
Basic loss per share from continuing operations | $ | (0.13 | ) | (0.11 | ) | (0.12 | ) | (1.25 | ) | (1.62 | ) | |||||||||
Basic earnings per share from discontinued operations | — | — | 0.03 | 0.06 | 0.10 | |||||||||||||||
Basic earnings per share from extraordinary gain | — | — | 0.20 | — | 0.20 | |||||||||||||||
Basic earnings (loss) per share | $ | (0.13 | ) | (0.11 | ) | 0.11 | (1.19 | ) | (1.32 | ) | ||||||||||
Diluted loss per share from continuing operations | $ | (0.13 | ) | (0.11 | ) | (0.12 | ) | (1.25 | ) | (1.62 | ) | |||||||||
Diluted earnings per share from discontinued operations | — | — | 0.03 | 0.06 | 0.10 | |||||||||||||||
Diluted earnings per share from extraordinary gain | — | — | 0.20 | — | 0.20 | |||||||||||||||
Diluted earnings (loss) per share | $ | (0.13 | ) | (0.11 | ) | 0.11 | (1.19 | ) | (1.32 | ) | ||||||||||
Basic weighted average number of common shares outstanding | 45,103 | 45,112 | 45,102 | 45,069 | 45,097 | |||||||||||||||
Diluted weighted average number of common shares outstanding | 45,103 | 45,112 | 45,102 | 45,069 | 45,097 | |||||||||||||||
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First | Second | Third | Fourth | |||||||||||||||||
2007 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Revenues | $ | 276,525 | 272,543 | 261,012 | 148,487 | 958,567 | ||||||||||||||
Costs and expenses | 282,231 | 334,549 | 493,490 | 182,098 | 1,292,368 | |||||||||||||||
(5,706 | ) | (62,006 | ) | (232,478 | ) | (33,611 | ) | (333,801 | ) | |||||||||||
Equity in earnings from unconsolidated affiliates | 2,893 | 2,026 | 4,763 | 3,042 | 12,724 | |||||||||||||||
Loss from continuing operations before income taxes | (2,813 | ) | (59,980 | ) | (227,715 | ) | (30,569 | ) | (321,077 | ) | ||||||||||
Provision (benefit) for income taxes | (272 | ) | (17,774 | ) | (38,757 | ) | (12,209 | ) | (69,012 | ) | ||||||||||
Loss from continuing operations | (2,541 | ) | (42,206 | ) | (188,958 | ) | (18,360 | ) | (252,065 | ) | ||||||||||
Discontinued operations, less income taxes | 7,259 | (99 | ) | — | — | 7,160 | ||||||||||||||
Extraordinary gain, less income taxes | — | — | — | 2,403 | 2,403 | |||||||||||||||
Net (loss) income | 4,718 | (42,305 | ) | (188,958 | ) | (15,957 | ) | (242,502 | ) | |||||||||||
Net (loss) income attributable to noncontrolling interest | 5,291 | (39,391 | ) | (163,711 | ) | (14,232 | ) | (212,043 | ) | |||||||||||
Net loss attributable to BFC | (573 | ) | (2,914 | ) | (25,247 | ) | (1,725 | ) | (30,459 | ) | ||||||||||
Preferred stock dividends | (188 | ) | (187 | ) | (187 | ) | (188 | ) | (750 | ) | ||||||||||
Net loss allocable to common shareholders | $ | (761 | ) | (3,101 | ) | (25,434 | ) | (1,913 | ) | (31,209 | ) | |||||||||
Basic loss per share from continuing operations | $ | (0.05 | ) | (0.09 | ) | (0.59 | ) | (0.10 | ) | (0.90 | ) | |||||||||
Basic earnings per share from discontinued operations | 0.03 | — | — | — | 0.03 | |||||||||||||||
Basic earnings per share from extraordinary gain | — | — | — | 0.05 | 0.06 | |||||||||||||||
Basic earnings (loss) per share | $ | (0.02 | ) | (0.09 | ) | (0.59 | ) | (0.04 | ) | (0.81 | ) | |||||||||
Diluted loss per share from continuing operations | $ | (0.05 | ) | (0.09 | ) | (0.60 | ) | (0.10 | ) | (0.90 | ) | |||||||||
Diluted earnings per share from discontinued operations | 0.03 | — | — | — | 0.03 | |||||||||||||||
Diluted earnings per share from extraordinary gain | — | — | — | 0.05 | 0.06 | |||||||||||||||
Diluted earnings (loss) per share | $ | (0.02 | ) | (0.09 | ) | (0.60 | ) | (0.05 | ) | (0.81 | ) | |||||||||
Basic weighted average number of common shares outstanding | 33,444 | 33,451 | 42,942 | 45,096 | 38,778 | |||||||||||||||
Diluted weighted average number of common shares outstanding | 33,444 | 33,451 | 42,942 | 45,096 | 38,778 | |||||||||||||||
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37. | Financial Information of Levitt and Sons |
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November 9, | ||||
2007 | ||||
Cash | $ | 6,387 | ||
Inventory | 356,294 | |||
Property and equipment | 1,681 | |||
Other assets | 8,974 | |||
Assets deconsolidated | 373,336 | |||
Accounts payable and other accrued liabilities | 50,709 | |||
Customer deposits | 18,007 | |||
Notes and mortgage payable | 344,052 | |||
Due to Woodbridge | 67,831 | |||
Liabilities deconsolidated | $ | 480,599 | ||
Net equity/negative investment | $ | (107,263 | ) | |
The loss in excess of investment in subsidiary is comprised of: | ||||
Net equity/negative investment | (107,263 | ) | ||
Due to Woodbridge | 67,831 | |||
Deferred revenue(a) | (15,780 | ) | ||
$ | (55,212 | ) | ||
(a) | During the fourth quarter of 2008, deferred revenue was adjusted by $2.3 million due to a reclassification on intercompany land sales between Core and Carolina Oak that had been inadvertently recorded against the negative investment. As a result of this reclassification the net negative investment was reduced from $55.2 million to $52.9 million as of December 31, 2008. |
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2008 | 2007 | |||||||
(In thousands) | ||||||||
Assets | ||||||||
Cash | $ | 4,712 | 5,365 | |||||
Restricted cash | 885 | — | ||||||
Inventory | 166,358 | 208,686 | ||||||
Property and equipment | — | 55 | ||||||
Other assets | 19,657 | 23,810 | ||||||
Total assets | $ | 191,612 | 237,916 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Accounts payable and other accrued liabilities | $ | 719 | 469 | |||||
Due to Woodbridge | 2,870 | 748 | ||||||
Liabilities subject to compromise(A) | 327,707 | 354,748 | ||||||
Shareholders’ deficit | $ | (139,684 | ) | (118,049 | ) | |||
Total liabilities and shareholders’ equity | $ | 191,612 | 237,916 | |||||
(A) | Liabilities Subject to Compromise |
Accounts payable and other accrued liabilities | $ | 54,954 | ||
Customer deposits | 15,754 | |||
Due to Woodbridge | 87,182 | |||
Deficiency claim associated with secured debt | 45,458 | |||
Notes and mortgage payable | 124,359 | |||
Total liabilities subject to compromise | $ | 327,707 | ||
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2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues | ||||||||||||
Sales of real estate | $ | 32,505 | 397,561 | 500,719 | ||||||||
Other revenues | 2 | 2,245 | 4,070 | |||||||||
Total revenues | 32,507 | 399,806 | 504,789 | |||||||||
Costs and expenses | ||||||||||||
Cost of sales of real estate | 42,864 | 562,763 | 440,059 | |||||||||
Selling, general and administrative expenses | 4,340 | 70,848 | 77,858 | |||||||||
Total costs and expenses | 47,204 | 633,611 | 517,917 | |||||||||
Bankruptcy related items, net | (7,049 | ) | (3,525 | ) | — | |||||||
Other income, net of interest and other expense | 111 | (1,928 | ) | (560 | ) | |||||||
Loss before income taxes | (21,635 | ) | (239,258 | ) | (13,688 | ) | ||||||
(Provision) benefit for income taxes | — | (303 | ) | 4,749 | ||||||||
Net loss | $ | (21,635 | ) | (239,561 | ) | (8,939 | ) | |||||
38. | Subsequent Events |
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39. | Revised Financial Information |
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Page | ||||
Unaudited Financial Statements: | ||||
F-166 | ||||
F-167 | ||||
F-168 | ||||
F-169 | ||||
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F-171 | ||||
Audited Financial Statements: | ||||
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June 30, | December 31, | |||||||
2009 | 2008 | |||||||
(In thousands, except share data) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 58,158 | 114,798 | |||||
Restricted cash | 7,845 | 21,288 | ||||||
Inventory of real estate | 243,564 | 241,318 | ||||||
Investments: | ||||||||
Bluegreen Corporation | 28,580 | 29,789 | ||||||
Other equity securities | 6,545 | 4,278 | ||||||
Certificates of deposits, short-term | 49,920 | 9,600 | ||||||
Unconsolidated trusts | 418 | 419 | ||||||
Property and equipment, net | 105,979 | 109,477 | ||||||
Intangible assets | 5,073 | 4,324 | ||||||
Other assets | 24,183 | 23,963 | ||||||
Total assets | $ | 530,265 | 559,254 | |||||
LIABILITIES AND EQUITY | ||||||||
Accounts payable, accrued liabilities and other | $ | 35,736 | 36,885 | |||||
Notes and mortgage notes payable | 263,464 | 264,900 | ||||||
Junior subordinated debentures | 85,052 | 85,052 | ||||||
Loss in excess of investment in subsidiary | — | 52,887 | ||||||
Total liabilities | 384,252 | 439,724 | ||||||
Equity: | ||||||||
Preferred stock, $0.01 par value | ||||||||
Authorized: 5,000,000 shares Issued and outstanding: no shares | — | — | ||||||
Class A common stock, $0.01 par value | ||||||||
Authorized: 30,000,000 shares Issued: 16,637,132 and 19,042,149 shares, respectively | 166 | 190 | ||||||
Class B common stock, $0.01 par value | ||||||||
Authorized: 2,000,000 shares Issued and outstanding: 243,807 shares | 2 | 2 | ||||||
Additional paid-in capital | 339,650 | 339,780 | ||||||
Accumulated deficit(a) | (201,356 | ) | (218,868 | ) | ||||
Accumulated other comprehensive income (loss)(a) | 3,882 | (135 | ) | |||||
142,344 | 120,969 | |||||||
Less — common stock in treasury, at cost (2,385,624 shares at December 31, 2008) | — | (1,439 | ) | |||||
Total Woodbridge shareholders’ equity | 142,344 | 119,530 | ||||||
Noncontrolling interest | 3,669 | — | ||||||
Total equity | 146,013 | 119,530 | ||||||
Total liabilities and equity | $ | 530,265 | 559,254 | |||||
(a) | Accumulated deficit at January 1, 2009 was decreased by $2.1 million representing the pro rata share of the after tax non-credit portion of other-than- temporary impairment losses recognized by Bluegreen Corporation upon its adoption of FSPFAS 115-2. Theseother-than-temporary losses which were previously recognized in earnings have been reclassified to accumulated other comprehensive income (loss). |
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Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(As Adjusted) | (As Adjusted) | |||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
Sales of real estate | $ | 1,767 | 2,395 | 3,194 | 2,549 | |||||||||||
Other revenues | 3,046 | 2,744 | 5,936 | 5,708 | ||||||||||||
Total revenues | 4,813 | 5,139 | 9,130 | 8,257 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales of real estate | 1,301 | 1,758 | 1,994 | 1,786 | ||||||||||||
Selling, general and administrative expenses | 10,349 | 12,952 | 21,103 | 25,579 | ||||||||||||
Interest expense | 3,747 | 2,532 | 6,520 | 5,556 | ||||||||||||
Total costs and expenses | 15,397 | 17,242 | 29,617 | 32,921 | ||||||||||||
Earnings from Bluegreen Corporation | 10,714 | 1,211 | 17,050 | 1,737 | ||||||||||||
Impairment of investment in Bluegreen Corporation | — | — | (20,401 | ) | — | |||||||||||
Impairment of other investments | — | — | (2,396 | ) | — | |||||||||||
Gain on settlement of investment in subsidiary | — | — | 40,369 | — | ||||||||||||
Interest and other income | 277 | 1,950 | 843 | 3,554 | ||||||||||||
Income (loss) before income taxes and noncontrolling interest | 407 | (8,942 | ) | 14,978 | (19,373 | ) | ||||||||||
(Provision) benefit for income taxes | — | — | — | — | ||||||||||||
Net income (loss) | 407 | (8,942 | ) | 14,978 | (19,373 | ) | ||||||||||
Add: Net loss attributable to noncontrolling interest | 270 | — | 474 | — | ||||||||||||
Net income (loss) attributable to Woodbridge | $ | 677 | (8,942 | ) | 15,452 | (19,373 | ) | |||||||||
Income (loss) per common share attributable to Woodbridge common shareholders: | ||||||||||||||||
Basic | $ | 0.04 | (0.46 | ) | 0.91 | (1.01 | ) | |||||||||
Diluted | $ | 0.04 | (0.46 | ) | 0.91 | (1.01 | ) | |||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 16,893 | 19,255 | 16,890 | 19,255 | ||||||||||||
Diluted | 16,893 | 19,255 | 16,890 | 19,255 |
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Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Net income (loss) | $ | 407 | (8,942 | ) | 14,978 | (19,373 | ) | |||||||||
Other comprehensive income (loss): | ||||||||||||||||
Pro-rata share of unrealized gain (loss) recognized by Bluegreen Corporation on retained interests in notes receivable sold | 132 | (458 | ) | 605 | (885 | ) | ||||||||||
Pro-rata share of cumulative impact of accounting changes recognized by Bluegreen | ||||||||||||||||
Corporation on retained interests in notes receivable sold(FAS 115-2) | (1,251 | ) | — | (1,251 | ) | — | ||||||||||
Unrealized gain (loss) on other equity securities, net of reclassification adjustments (See Note 8) | 4,663 | 273 | 4,663 | (553 | ) | |||||||||||
Total unrealized gain (loss) | 3,544 | (185 | ) | 4,017 | (1,438 | ) | ||||||||||
Other comprehensive income (loss) | 3,951 | (9,127 | ) | 18,995 | (20,811 | ) | ||||||||||
Add: Comprehensive loss attributable to noncontrolling interest | 270 | — | 474 | — | ||||||||||||
Total comprehensive income (loss) attributable to Woodbridge | $ | 4,221 | (9,127 | ) | 19,469 | (20,811 | ) | |||||||||
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Unrealized holding gains onavailable-for-sale securities | $ | 4,663 | — | |||||
Cumulative impact of accounting changes recognized by Bluegreen Corporation on retained interests in notes receivable sold(FAS 115-2) | (1,251 | ) | — | |||||
Unrealized holding gain (loss) recognized by Bluegreen Corporation on retained interests in notes receivable sold | 470 | (135 | ) | |||||
Accumulated other comprehensive income (loss) | $ | 3,882 | (135 | ) | ||||
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Common | ||||||||||||||||||||||||||||||||||||||||||||
Shares of Common | Class A | Class B | Additional | Accumulated | Stock in | Non- | ||||||||||||||||||||||||||||||||||||||
Stock Outstanding | Common | Common | Paid-in | Retained | Comprehensive | Treasury | Controlling | |||||||||||||||||||||||||||||||||||||
Class A | Class B | Stock | Stock | Capital | Deficit | (Loss) Income | Shares | Amount | Interest | Total | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2008 | 19,042 | 244 | $ | 190 | $ | 2 | $ | 339,780 | $ | (218,868 | ) | $ | (135 | ) | 2,386 | $ | (1,439 | ) | $ | — | $ | 119,530 | ||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | — | — | 4,143 | 4,143 | |||||||||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | — | — | — | 19 | (13 | ) | — | (13 | ) | |||||||||||||||||||||||||||||||
Retirement of treasury shares | (2,399 | ) | — | (24 | ) | — | (1,428 | ) | — | — | (2,405 | ) | 1,452 | — | — | |||||||||||||||||||||||||||||
Share based compensation related to stock options and restricted stock | — | — | — | — | 570 | — | — | — | — | — | 570 | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 15,452 | — | — | — | (474 | ) | 14,978 | ||||||||||||||||||||||||||||||||
Pro-rata share of unrealized gain recognized by Bluegreen on retained interests in notes receivable sold | — | — | — | — | — | — | 605 | — | — | — | 605 | |||||||||||||||||||||||||||||||||
Pro-rata share of the cumulative impact of accounting changes recognized by Bluegreen Corporation on retained interests in notes receivable sold(FAS 115-2) | — | — | — | — | — | 2,060 | (1,251 | ) | — | — | — | 809 | ||||||||||||||||||||||||||||||||
Unrealized gain on other equity securities | — | — | — | — | — | — | 4,663 | — | — | — | 4,663 | |||||||||||||||||||||||||||||||||
Issuance of Bluegreen common stock | — | — | — | — | 728 | — | — | — | — | — | 728 | |||||||||||||||||||||||||||||||||
Balance at June 30, 2009 | 16,643 | 244 | $ | 166 | $ | 2 | $ | 339,650 | $ | (201,356 | ) | $ | 3,882 | — | $ | — | $ | 3,669 | $ | 146,013 | ||||||||||||||||||||||||
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Six Months Ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
Net cash used in operating activities | $ | (18,358 | ) | (39,768 | ) | |||
Investing activities: | ||||||||
Purchases of other equity securities | — | (33,978 | ) | |||||
Proceeds from sale of other equity securities | — | 18,904 | ||||||
Decrease in restricted cash | 13,443 | 1,478 | ||||||
Cash paid in settlement of subsidiary bankruptcy | (12,430 | ) | — | |||||
Distributions from unconsolidated trusts | 110 | 110 | ||||||
Adjustment to acquisition of Pizza Fusion | 3,000 | — | ||||||
Proceeds from the maturities of certificates of deposits, short-term | 9,600 | — | ||||||
Purchase of certificates of deposits, short-term | (49,920 | ) | — | |||||
Capital expenditures | (352 | ) | (1,123 | ) | ||||
Net cash used in investing activities | (36,549 | ) | (14,609 | ) | ||||
Financing activities: | ||||||||
Proceeds from notes and mortgage notes payable | 132 | 7,283 | ||||||
Repayment of notes and mortgage notes payable | (1,558 | ) | (22,656 | ) | ||||
Payments for debt issuance costs | (294 | ) | (124 | ) | ||||
Purchase of treasury shares | (13 | ) | — | |||||
Net cash used in financing activities | (1,733 | ) | (15,497 | ) | ||||
Decrease in cash and cash equivalents | (56,640 | ) | (69,874 | ) | ||||
Cash and cash equivalents at the beginning of period | 114,798 | 195,181 | ||||||
Cash and cash equivalents at the end of period | $ | 58,158 | 125,307 | |||||
Supplemental cash flow information: | ||||||||
Interest paid on borrowings, net of amounts capitalized | $ | 5,299 | 5,793 | |||||
Supplemental disclosure of non-cash operating, investing and financing activities: | ||||||||
Change in equity resulting from unrealized gain (loss) recognized from equity securities, net of tax | $ | 5,268 | (1,438 | ) | ||||
Change in equity resulting from the issuance of Bluegreen common stock, net of tax | $ | 728 | 497 | |||||
Change in equity resulting from retirement of treasury shares | $ | 1,439 | — | |||||
Change in equity resulting from the cumulative impact of accounting changes recognized by Bluegreen Corporation on retained interests sold(FAS 115-2) | $ | 809 | — |
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1. | Presentation of Interim Financial Statements |
F-171
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F-172
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F-173
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2. | Liquidity — Core Communities |
3. | Business Combination |
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4. | Stock Based Compensation |
Number of | Weighted | |||||||
Stock | Average Exercise | |||||||
Options | Price | |||||||
Options outstanding at December 31, 2008 | 318,471 | $ | 78.89 | |||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Forfeited | 3,900 | $ | 72.36 | |||||
Options outstanding at June 30, 2009 | 314,571 | $ | 78.97 | |||||
Options exercisable at June 30, 2009 | 141,682 | $ | 70.93 | |||||
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F-176
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5. | Inventory of Real Estate |
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Land and land development costs | $ | 202,518 | 202,456 | |||||
Construction costs | 442 | 463 | ||||||
Capitalized interest | 39,969 | 37,764 | ||||||
Other costs | 635 | 635 | ||||||
$ | 243,564 | 241,318 | ||||||
6. | Property and Equipment |
Depreciable Life | June 30, 2009 | December 31, 2008 | ||||||||
Real estate investments | 30-39 years | $ | 96,888 | 97,113 | ||||||
Water and irrigation facilities | 35-50 years | 12,490 | 12,346 | |||||||
Furniture and fixtures and equipment | 3-7 years | 12,332 | 12,259 | |||||||
121,710 | 121,718 | |||||||||
Accumulated depreciation | (15,731 | ) | (12,241 | ) | ||||||
Property and equipment, net | $ | 105,979 | 109,477 | |||||||
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7. | Interest |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Interest incurred | $ | 4,398 | 5,594 | 8,805 | 11,806 | |||||||||||
Interest capitalized | (651 | ) | (3,062 | ) | (2,285 | ) | (6,250 | ) | ||||||||
Interest expense | $ | 3,747 | 2,532 | 6,520 | 5,556 | |||||||||||
�� | ||||||||||||||||
Interest expensed in cost of sales | $ | 80 | 44 | 80 | 44 | |||||||||||
8. | Investments |
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Three Months Ended | Six Months Ended | |||||||
June 30, 2009 | June 30, 2009 | |||||||
Pro rata share of Bluegreen’s net income | $ | 2,076 | 3,158 | |||||
Amortization of basis difference | 8,638 | 13,892 | ||||||
Total earnings from Bluegreen Corporation | $ | 10,714 | 17,050 | |||||
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Pro rata share of investment in Bluegreen Corporation | $ | 35,089 | 115,065 | |||||
Amortization of basis difference | 13,892 | 9,150 | ||||||
Less: Impairment of investment in Bluegreen Corporation during the three months ended March 31, 2009 | (20,401 | ) | (94,426 | ) | ||||
Investment in Bluegreen Corporation | $ | 28,580 | 29,789 | |||||
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June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Total assets | $ | 1,196,265 | 1,193,507 | |||||
Total liabilities | $ | 764,147 | 781,522 | |||||
Total Bluegreen shareholders’ equity | 399,864 | 382,467 | ||||||
Noncontrolling interest | 32,254 | 29,518 | ||||||
Total equity | 432,118 | 411,985 | ||||||
Total liabilities and shareholders’ equity | $ | 1,196,265 | 1,193,507 | |||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues and other income | $ | 92,031 | 151,603 | 170,520 | 290,955 | |||||||||||
Cost and other expenses | 86,321 | 144,726 | 157,775 | 280,989 | ||||||||||||
Income before noncontrolling interests and provision for income taxes | 5,710 | 6,877 | 12,745 | 9,966 | ||||||||||||
Benefit (provision) for income taxes | 2,654 | (2,112 | ) | 358 | (2,967 | ) | ||||||||||
Net income | 8,364 | 4,765 | 13,103 | 6,999 | ||||||||||||
Net income attributable to noncontrolling interests | (1,550 | ) | (1,320 | ) | (2,736 | ) | (2,158 | ) | ||||||||
Net income attributable to Bluegreen | $ | 6,814 | 3,445 | 10,367 | 4,841 | |||||||||||
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June 30, | ||||
2009 | ||||
Fair value at December 31, 2008 | $ | 4,278 | ||
Other-than-temporary impairment during | ||||
the three months ended March 31, 2009 | (2,396 | ) | ||
Unrealized holding gain | 4,663 | |||
Fair value at June 30, 2009 | $ | 6,545 | ||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Unrealized holding gains arising during the period | $ | 4,663 | 1,451 | 2,267 | 625 | |||||||||||
Less: Reclassification adjustment for gains included in net income (loss) | — | (1,178 | ) | — | (1,178 | ) | ||||||||||
Add: Reclassification adjustment forother-than-temporary losses included in net income (loss) | — | — | 2,396 | — | ||||||||||||
Net unrealized gain (loss) on securities | $ | 4,663 | 273 | 4,663 | (553 | ) | ||||||||||
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9. | Debt |
June 30, | December 31, | |||||||||
2009 | 2008 | Maturity Date | ||||||||
5.50% Commercial development mortgage note payable(a) | $ | 58,262 | 58,262 | June 2012 | ||||||
2.06% Commercial development mortgage note payable | 4,696 | 4,724 | June 2010 | |||||||
2.41% Commercial development mortgage note payable | 9,041 | 8,919 | July 2010 | |||||||
5.00% Land development mortgage note payable | 25,000 | 25,000 | February 2012 | |||||||
3.72% Land acquisition mortgage note payable | 22,824 | 23,184 | October 2019 | |||||||
6.88% Land acquisition mortgage note payable | 4,808 | 4,928 | October 2019 | |||||||
3.06% Land acquisition mortgage note payable(b) | 86,392 | 86,922 | June 2011 | |||||||
3.25% Borrowing base facility | 37,174 | 37,458 | March 2011 | |||||||
5.47% Other mortgage note payable | 11,712 | 11,831 | April 2015 | |||||||
6.00% — 6.13% Development bonds | 3,281 | 3,291 | May 2035 | |||||||
6.50% — 9.15% Other borrowings | 274 | 381 | August 2009 — June 2013 | |||||||
Total | $ | 263,464 | 264,900 | |||||||
(a) | Core has a credit agreement with a financial institution which provides for borrowings of up to $64.3 million. The credit agreement had an original maturity date of June 26, 2009 and a variable interest rate of30-day LIBOR plus 170 basis points or Prime Rate. During June 2009, the loan agreement was modified to extend the maturity date to June 2012. The loan, as modified, bears interest at a fixed interest rate of 5.5%. The terms of the modification also required Core to pledge approximately 10 acres of additional collateral. The new terms of the loan also include a debt service coverage ratio covenant of 1.10:1 and the elimination of a loan to value covenant. As of June 30, 2009, the loan had an outstanding balance of $58.3 million. |
(b) | In January of 2009, Core was advised by one of its lenders that the lender had received an external appraisal on the land that serves as collateral for a development mortgage note payable, which had an outstanding balance of $86.4 million at June 30, 2009. The appraised value would suggest the potential for a re-margining payment to bring the note payable back in line with the minimumloan-to-value requirement. The lender is conducting its internal review procedures, including the determination of the appraised value. As of the date of this filing, Core is in discussions with the lender to restructure the loan which may eliminate any re-margining requirements; however, there is no assurance that these discussions will be successful or that re-margining payments will not otherwise be required in the future. |
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Beginning | ||||||||||||
Optional | ||||||||||||
June 30, | December 31, | Maturity | Redemption | |||||||||
2009 | 2008 | Date | Date | |||||||||
8.11% Levitt Capital Trust I | $ | 23,196 | 23,196 | March 2035 | March 2010 | |||||||
8.09% Levitt Capital Trust II | 30,928 | 30,928 | July 2035 | July 2010 | ||||||||
9.25% Levitt Capital Trust III | 15,464 | 15,464 | June 2036 | June 2011 | ||||||||
9.35% Levitt Capital Trust IV | 15,464 | 15,464 | September 2036 | September 2011 | ||||||||
Total | $ | 85,052 | 85,052 | |||||||||
10. | Fair Value Measurements |
• | Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; |
• | Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and |
• | Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
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Fair Value | Fair Value at | |||||
Hierarchy | June 30, 2009 | |||||
Investment in other equity securities | Level 1 | $ | 6,545 |
Fair Value | Fair Value at | |||||
Hierarchy | June 30, 2009 | |||||
Investment in Bluegreen Corporation | Level 1 | $ | 23,984 | |||
Investment in unconsolidated trusts | Level 3 | 1,051 | ||||
$ | 25,035 | |||||
Investment in | ||||
Unconsolidated | ||||
Trusts | ||||
Balance at December 31, 2008 | $ | 419 | ||
Total unrealized gains | 632 | |||
Balance at June 30, 2009 | $ | 1,051 | ||
11. | Commitments and Contingencies |
Severance | Independent | |||||||||||||||||||
Related and | Contractor | Surety Bond | ||||||||||||||||||
Benefits | Facilities | Agreements | Accrual | Total | ||||||||||||||||
Balance at December 31, 2008 | $ | 129 | 704 | 597 | 1,144 | 2,574 | ||||||||||||||
Restructuring charges | 82 | — | 39 | — | 121 | |||||||||||||||
Cash payments | (211 | ) | (186 | ) | (388 | ) | (37 | ) | (822 | ) | ||||||||||
Balance at June 30, 2009 | $ | — | 518 | 248 | 1,107 | 1,873 | ||||||||||||||
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F-185
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12. | Development Bonds Payable |
13. | Earnings (Loss) per Share and Stock Repurchases |
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Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Numerator: | ||||||||||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
Net earnings (loss) attributable to Woodbridge — basic | $ | 677 | (8,942 | ) | 15,452 | (19,373 | ) | |||||||||
Diluted earnings (loss) per common share: | ||||||||||||||||
Net earnings (loss) attributable to Woodbridge — basic | $ | 677 | (8,942 | ) | 15,452 | (19,373 | ) | |||||||||
Pro rata share of the net effect of Bluegreen dilutive securities | — | (5 | ) | — | (7 | ) | ||||||||||
Net earnings (loss) attributable to Woodbridge — diluted | $ | 677 | (8,947 | ) | 15,452 | (19,380 | ) | |||||||||
Denominator: | ||||||||||||||||
Basic average shares outstanding | 16,893 | 19,255 | 16,890 | 19,255 | ||||||||||||
Effect of dilutive stock options and unvested restricted stock | — | — | — | — | ||||||||||||
Diluted average shares outstanding | 16,893 | 19,255 | 16,890 | 19,255 | ||||||||||||
Earnings (loss) per common share attributable to Woodbridge common shareholders: | ||||||||||||||||
Basic | $ | 0.04 | (0.46 | ) | 0.91 | (1.01 | ) | |||||||||
Diluted | $ | 0.04 | (0.46 | ) | 0.91 | (1.01 | ) |
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14. | Other Revenues |
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Lease/rental income | $ | 2,413 | 2,219 | 4,693 | 4,719 | |||||||||||
Marketing fees | 36 | 246 | 84 | 339 | ||||||||||||
Impact fees | 126 | 32 | 137 | 178 | ||||||||||||
Franchise revenue | 202 | — | 501 | — | ||||||||||||
Irrigation revenue | 269 | 247 | 521 | 472 | ||||||||||||
Total other revenues | $ | 3,046 | 2,744 | 5,936 | 5,708 | |||||||||||
15. | Income Taxes |
16. | Interest and Other Income |
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Interest income | $ | 166 | 625 | 432 | 2,101 | |||||||||||
Gain on sale of other equity securities | — | 1,178 | — | 1,178 | ||||||||||||
Forfeited deposits | — | — | 188 | — | ||||||||||||
Other income | 111 | 147 | 223 | 275 | ||||||||||||
Total interest and other income | $ | 277 | 1,950 | 843 | 3,554 | |||||||||||
17. | Segment Reporting |
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Other | ||||||||||||||||
Three Months Ended June 30, 2009 | Land | Operations | Eliminations | Total | ||||||||||||
Revenues: | ||||||||||||||||
Sales of real estate | $ | 1,408 | 320 | 39 | 1,767 | |||||||||||
Other revenues | 2,533 | 521 | (8 | ) | 3,046 | |||||||||||
Total revenues | 3,941 | 841 | 31 | 4,813 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales of real estate | 1,113 | 173 | 15 | 1,301 | ||||||||||||
Selling, general and administrative expenses | 5,162 | 5,209 | (22 | ) | 10,349 | |||||||||||
Interest expense | 1,301 | 2,446 | — | 3,747 | ||||||||||||
Total costs and expenses | 7,576 | 7,828 | (7 | ) | 15,397 | |||||||||||
Earnings from Bluegreen Corporation | — | 10,714 | — | 10,714 | ||||||||||||
Interest and other income | 130 | 170 | (23 | ) | 277 | |||||||||||
(Loss) income before income taxes and noncontrolling interest | (3,505 | ) | 3,897 | 15 | 407 | |||||||||||
(Provision) benefit for income taxes | — | — | — | — | ||||||||||||
Net (loss) income | (3,505 | ) | 3,897 | 15 | 407 | |||||||||||
Add: Net loss attributable to noncontrolling interest | — | 270 | — | 270 | ||||||||||||
Net (loss) income attributable to Woodbridge | $ | (3,505 | ) | 4,167 | 15 | 677 | ||||||||||
Inventory of real estate | $ | 209,149 | 35,565 | (1,150 | ) | 243,564 | ||||||||||
Total assets | $ | 329,889 | 201,526 | (1,150 | ) | 530,265 | ||||||||||
Total debt | $ | 214,389 | 134,127 | — | 348,516 | |||||||||||
Total liabilities | $ | 246,754 | 145,523 | (8,025 | ) | 384,252 | ||||||||||
Total equity | $ | 83,135 | 56,003 | 6,875 | 146,013 | |||||||||||
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Other | ||||||||||||||||
Three Months Ended June 30, 2008 | Land | Operations | Eliminations | Total | ||||||||||||
Revenues: | ||||||||||||||||
Sales of real estate | $ | 1,711 | 635 | 49 | 2,395 | |||||||||||
Other revenues | 2,493 | 251 | — | 2,744 | ||||||||||||
Total revenues | 4,204 | 886 | 49 | 5,139 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales of real estate | 1,145 | 587 | 26 | 1,758 | ||||||||||||
Selling, general and administrative expenses | 5,320 | 7,651 | (19 | ) | 12,952 | |||||||||||
Interest expense | 871 | 2,104 | (443 | ) | 2,532 | |||||||||||
Total costs and expenses | 7,336 | 10,342 | (436 | ) | 17,242 | |||||||||||
Earnings from Bluegreen Corporation | — | 1,211 | — | 1,211 | ||||||||||||
Interest and other income | 661 | 1,732 | (443 | ) | 1,950 | |||||||||||
(Loss) income before income taxes | (2,471 | ) | (6,513 | ) | 42 | (8,942 | ) | |||||||||
Benefit for income taxes | — | — | — | — | ||||||||||||
Net (loss) income | $ | (2,471 | ) | (6,513 | ) | 42 | (8,942 | ) | ||||||||
Inventory of real estate | $ | 200,976 | 48,620 | (7,411 | ) | 242,185 | ||||||||||
Total assets | $ | 362,709 | 316,389 | (5,387 | ) | 673,711 | ||||||||||
Total debt | $ | 202,165 | 136,400 | — | 338,565 | |||||||||||
Total liabilities | $ | 239,666 | 181,958 | 11,227 | 432,851 | |||||||||||
Total shareholders’ equity | $ | 123,043 | 134,431 | (16,614 | ) | 240,860 | ||||||||||
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Other | ||||||||||||||||
Six Months Ended June 30, 2009 | Land | Operations | Eliminations | Total | ||||||||||||
Revenues: | ||||||||||||||||
Sales of real estate | $ | 2,835 | 320 | 39 | 3,194 | |||||||||||
Other revenues | 4,810 | 1,143 | (17 | ) | 5,936 | |||||||||||
Total revenues | 7,645 | 1,463 | 22 | 9,130 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales of real estate | 1,806 | 173 | 15 | 1,994 | ||||||||||||
Selling, general and administrative expenses | 11,409 | 9,716 | (22 | ) | 21,103 | |||||||||||
Interest expense | 2,671 | 3,849 | — | 6,520 | ||||||||||||
Total costs and expenses | 15,886 | 13,738 | (7 | ) | 29,617 | |||||||||||
Earnings from Bluegreen Corporation | — | 17,050 | — | 17,050 | ||||||||||||
Impairment of investment in Bluegreen Corporation | — | (20,401 | ) | — | (20,401 | ) | ||||||||||
Impairment of other investments | — | (2,396 | ) | — | (2,396 | ) | ||||||||||
Gain on settlement of investment in subsidiary | — | 26,985 | 13,384 | 40,369 | ||||||||||||
Interest and other income | 404 | 462 | (23 | ) | 843 | |||||||||||
(Loss) income before income taxes and noncontrolling interest | (7,837 | ) | 9,425 | 13,390 | 14,978 | |||||||||||
(Provision) benefit for income taxes | — | — | — | |||||||||||||
Net (loss) income | (7,837 | ) | 9,425 | 13,390 | 14,978 | |||||||||||
Add: Net loss attributable to noncontrolling interest | — | 474 | — | 474 | ||||||||||||
Net (loss) income attributable to Woodbridge | $ | (7,837 | ) | 9,899 | 13,390 | 15,452 | ||||||||||
Inventory of real estate | $ | 209,149 | 35,565 | (1,150 | ) | 243,564 | ||||||||||
Total assets | $ | 329,889 | 201,526 | (1,150 | ) | 530,265 | ||||||||||
Total debt | $ | 214,389 | 134,127 | — | 348,516 | |||||||||||
Total liabilities | $ | 246,754 | 145,523 | (8,025 | ) | 384,252 | ||||||||||
Total equity | $ | 83,135 | 56,003 | 6,875 | 146,013 | |||||||||||
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Other | ||||||||||||||||
Six Months Ended June 30, 2008 | Land | Operations | Eliminations | Total | ||||||||||||
Revenues: | ||||||||||||||||
Sales of real estate | $ | 1,865 | 635 | 49 | 2,549 | |||||||||||
Other revenues | 5,198 | 510 | — | 5,708 | ||||||||||||
Total revenues | 7,063 | 1,145 | 49 | 8,257 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales of real estate | 1,173 | 587 | 26 | 1,786 | ||||||||||||
Selling, general and administrative expenses | 10,851 | 14,747 | (19 | ) | 25,579 | |||||||||||
Interest expense | 1,864 | 4,777 | (1,085 | ) | 5,556 | |||||||||||
Total costs and expenses | 13,888 | 20,111 | (1,078 | ) | 32,921 | |||||||||||
Earnings from Bluegreen Corporation | — | 1,737 | — | 1,737 | ||||||||||||
Interest and other income | 1,565 | 3,074 | (1,085 | ) | 3,554 | |||||||||||
(Loss) income before income taxes | (5,260 | ) | (14,155 | ) | 42 | (19,373 | ) | |||||||||
Benefit for income taxes | — | — | — | — | ||||||||||||
Net (loss) income | $ | (5,260 | ) | (14,155 | ) | 42 | (19,373 | ) | ||||||||
Inventory of real estate | $ | 200,976 | 48,620 | (7,411 | ) | 242,185 | ||||||||||
Total assets | $ | 362,709 | 316,389 | (5,387 | ) | 673,711 | ||||||||||
Total debt | $ | 202,165 | 136,400 | — | 338,565 | |||||||||||
Total liabilities | $ | 239,666 | 181,958 | 11,227 | 432,851 | |||||||||||
Total shareholders’ equity | $ | 123,043 | 134,431 | (16,614 | ) | 240,860 | ||||||||||
18. | Parent Company Financial Statements |
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June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Total assets | $ | 240,588 | 253,017 | |||||
Total liabilities | $ | 94,575 | 133,487 | |||||
Total equity | 146,013 | 119,530 | ||||||
Total liabilities and equity | $ | 240,588 | 253,017 | |||||
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Earnings from Bluegreen Corporation | $ | 10,714 | 1,211 | 17,050 | 1,737 | |||||||||||
Impairment of investment in Bluegreen Corporation | — | — | 20,401 | — | ||||||||||||
Other revenues | 167 | 544 | 422 | 1,883 | ||||||||||||
Gain on settlement of investment in subsidiary | — | — | 26,985 | — | ||||||||||||
Costs and expenses | 5,331 | 7,318 | 8,911 | 14,724 | ||||||||||||
Income (loss) before income taxes | 5,550 | (5,563 | ) | 15,145 | (11,104 | ) | ||||||||||
(Provision) benefit for income taxes | — | — | — | — | ||||||||||||
Net income (loss) before undistributed (loss) earnings from consolidated subsidiaries | 5,550 | (5,563 | ) | 15,145 | (11,104 | ) | ||||||||||
(Loss) earnings from consolidated subsidiaries, net of income taxes | (4,873 | ) | (3,379 | ) | 307 | (8,269 | ) | |||||||||
Net income (loss) | $ | 677 | (8,942 | ) | 15,452 | (19,373 | ) | |||||||||
19. | Certain Relationships and Related Party Transactions |
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20. | New Accounting Pronouncements |
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21. | Litigation |
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22. | Bankruptcy of Levitt and Sons |
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23. | Subsequent Events |
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2008 | 2007 | |||||||
(In thousands, except share data) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 114,798 | 195,181 | |||||
Restricted cash | 21,288 | 2,207 | ||||||
Current income tax receivable | — | 27,407 | ||||||
Inventory of real estate | 241,318 | 227,290 | ||||||
Investments: | ||||||||
Bluegreen Corporation | 29,789 | 116,014 | ||||||
Other equity securities | 4,278 | — | ||||||
Certificates of deposits, short-term | 9,600 | — | ||||||
Unconsolidated trusts | 419 | 2,565 | ||||||
Property and equipment, net | 109,477 | 118,243 | ||||||
Intangible assets | 4,324 | — | ||||||
Other assets | 23,963 | 23,944 | ||||||
Total assets | $ | 559,254 | 712,851 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Accounts payable, accrued liabilities and other | $ | 33,913 | 42,026 | |||||
Customer deposits | 592 | 715 | ||||||
Current income tax payable | 2,380 | — | ||||||
Notes and mortgage notes payable | 264,900 | 268,738 | ||||||
Junior subordinated debentures | 85,052 | 85,052 | ||||||
Loss in excess of investment in subsidiary | 52,887 | 55,214 | ||||||
Total liabilities | 439,724 | 451,745 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, $0.01 par value Authorized: 5,000,000 shares Issued and outstanding: no shares | — | — | ||||||
Class A Common Stock, $0.01 par value Authorized: 30,000,000 shares Issued: 19,042,149 and 19,010,804 shares, respectively | 190 | 190 | ||||||
Class B Common Stock, $0.01 par value Authorized: 2,000,000 shares Issued and outstanding: 243,807 shares | 2 | 2 | ||||||
Additional paid-in capital | 339,780 | 337,565 | ||||||
Accumulated deficit | (218,868 | ) | (78,537 | ) | ||||
Accumulated other comprehensive (loss)income | (135 | ) | 1,886 | |||||
120,969 | 261,106 | |||||||
Less — common stock in treasury, at cost (2,385,624 in 2008) | (1,439 | ) | — | |||||
Total shareholders’ equity | 119,530 | 261,106 | ||||||
Total liabilities and shareholders’ equity | $ | 559,254 | 712,851 | |||||
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2008 | 2007 | 2006 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Revenues: | ||||||||||||
Sales of real estate | $ | 13,837 | 410,115 | 566,086 | ||||||||
Other revenues | 11,701 | 10,458 | 9,241 | |||||||||
Total revenues | 25,538 | 420,573 | 575,327 | |||||||||
Costs and expenses: | ||||||||||||
Cost of sales of real estate | 12,728 | 573,241 | 482,961 | |||||||||
Selling, general and administrative expenses | 50,754 | 117,924 | 121,151 | |||||||||
Interest expense | 10,867 | 3,807 | — | |||||||||
Other expenses | — | 3,929 | 3,677 | |||||||||
Total costs and expenses | 74,349 | 698,901 | 607,789 | |||||||||
Earnings from Bluegreen Corporation | 8,996 | 10,275 | 9,684 | |||||||||
Impairment of investment in Bluegreen Corporation | (94,426 | ) | — | — | ||||||||
Impairment of other investments | (14,120 | ) | — | — | ||||||||
Interest and other income | 8,030 | 11,264 | 7,844 | |||||||||
Loss before income taxes | (140,331 | ) | (256,789 | ) | (14,934 | ) | ||||||
Benefit for income taxes | — | 22,169 | 5,770 | |||||||||
Net loss | $ | (140,331 | ) | (234,620 | ) | (9,164 | ) | |||||
Loss per common share: | ||||||||||||
Basic | $ | (7.35 | ) | (30.00 | ) | (2.27 | ) | |||||
Diluted | $ | (7.35 | ) | (30.00 | ) | (2.29 | ) | |||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 19,088 | 7,821 | 4,045 | |||||||||
Diluted | 19,088 | 7,821 | 4,045 | |||||||||
Dividends declared per common share: | ||||||||||||
Class A common stock | $ | — | 0.10 | 0.40 | ||||||||
Class B common stock | $ | — | 0.10 | 0.40 |
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2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Net loss | $ | (140,331 | ) | (234,620 | ) | (9,164 | ) | |||||
Other comprehensive income: | ||||||||||||
Pro-rata share of unrealized (loss) gain recognized by Bluegreen Corporation on retained interests in notes receivable sold | (2,021 | ) | (870 | ) | 1,263 | |||||||
Benefit (provision) for income taxes | — | 335 | (487 | ) | ||||||||
Pro-rata share of unrealized (loss) gain recognized by Bluegreen Corporation on retained interests in notes receivable sold (net of tax) | (2,021 | ) | (535 | ) | 776 | |||||||
Comprehensive loss | $ | (142,352 | ) | (235,155 | ) | (8,388 | ) | |||||
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Shares of | ||||||||||||||||||||||||||||||||||||||||||||
Common | ||||||||||||||||||||||||||||||||||||||||||||
Stock | Class A | Class B | Additional | Retained | Common Stock | Accumulated | ||||||||||||||||||||||||||||||||||||||
Outstanding | Common | Common | Paid-in | Earnings | Unearned | in Treasury | Comprehensive | |||||||||||||||||||||||||||||||||||||
Class A | Class B | Stock | Stock | Capital | (Deficit) | Compensation | Shares | Amount | Income (Loss) | Total | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2005 | 3,723 | 244 | $ | 37 | $ | 2 | $ | 181,243 | $ | 166,969 | $ | (110 | ) | — | $ | — | $ | 1,645 | $ | 349,786 | ||||||||||||||||||||||||
Issuance of restricted common stock | 1 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Reversal of unamortized stock compensation related to restricted stock upon adoption of FAS 123(R) | — | — | — | — | (110 | ) | — | 110 | — | — | — | — | ||||||||||||||||||||||||||||||||
Share based compensation related to stock options and restricted stock | — | — | — | — | 3,250 | — | — | — | — | — | 3,250 | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (9,164 | ) | — | — | — | — | (9,164 | ) | |||||||||||||||||||||||||||||||
Pro-rata share of unrealized gain recognized by Bluegreen on sale of retained interests, net of tax | — | — | — | — | — | — | — | — | — | 776 | 776 | |||||||||||||||||||||||||||||||||
Issuance of Bluegreen common stock, net of tax | — | — | — | — | 177 | — | — | — | — | — | 177 | |||||||||||||||||||||||||||||||||
Cash dividends paid | — | — | — | — | — | (1,586 | ) | — | — | — | — | (1,586 | ) | |||||||||||||||||||||||||||||||
Balance at December 31, 2006 | 3,724 | 244 | $ | 37 | $ | 2 | $ | 184,560 | $ | 156,219 | $ | — | — | $ | — | $ | 2,421 | $ | 343,239 | |||||||||||||||||||||||||
Issuance of restricted common stock | 2 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Issuance from Rights Offering, net of issue costs | 15,285 | — | 153 | — | 152,498 | — | — | — | — | — | 152,651 | |||||||||||||||||||||||||||||||||
Share based compensation related to stock options and restricted stock | — | — | — | — | 2,193 | — | — | — | — | — | 2,193 | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (234,620 | ) | — | — | — | — | (234,620 | ) | |||||||||||||||||||||||||||||||
Pro-rata share of unrealized loss recognized by Bluegreen on sale of retained interests, net of tax | — | — | — | — | — | — | — | — | — | (535 | ) | (535 | ) | |||||||||||||||||||||||||||||||
Issuance of Bluegreen common stock, net of tax | — | — | — | — | (279 | ) | — | — | — | — | — | (279 | ) | |||||||||||||||||||||||||||||||
Tax asset valuation allowance associated with Bluegreen capital transactions | — | — | — | — | (1,407 | ) | — | — | — | — | — | (1,407 | ) | |||||||||||||||||||||||||||||||
Cash dividends paid | — | — | — | — | — | (396 | ) | — | — | — | — | (396 | ) | |||||||||||||||||||||||||||||||
Cumulative impact of change in accounting for uncertainties in income taxes (FIN 48 — see Note 16) | — | — | — | — | — | 260 | — | — | — | — | 260 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2007 | 19,011 | 244 | $ | 190 | $ | 2 | $ | 337,565 | $ | (78,537 | ) | $ | — | — | $ | — | $ | 1,886 | $ | 261,106 | ||||||||||||||||||||||||
Issuance of restricted common stock | 31 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | — | — | — | 2,386 | (1,439 | ) | — | (1,439 | ) | |||||||||||||||||||||||||||||||
Share based compensation related to stock options and restricted stock | — | — | — | — | 990 | — | — | — | — | — | 990 | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (140,331 | ) | — | — | — | — | (140,331 | ) | |||||||||||||||||||||||||||||||
Pro-rata share of unrealized loss recognized by Bluegreen on sale of retained interests | — | — | — | — | — | — | — | — | — | (2,021 | ) | (2,021 | ) | |||||||||||||||||||||||||||||||
Issuance of Bluegreen common Stock | — | — | — | — | 1,225 | — | — | — | — | — | 1,225 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2008 | 19,042 | 244 | $ | 190 | $ | 2 | $ | 339,780 | $ | (218,868 | ) | $ | — | 2,386 | $ | (1,439 | ) | $ | (135 | ) | $ | 119,530 | ||||||||||||||||||||||
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2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Operating activities: | ||||||||||||
Net loss | $ | (140,331 | ) | (234,620 | ) | (9,164 | ) | |||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
Depreciation and amortization | 7,341 | 5,207 | 3,703 | |||||||||
Change in deferred income taxes | — | (1,187 | ) | (14,263 | ) | |||||||
Earnings from Bluegreen Corporation | (8,996 | ) | (10,275 | ) | (9,684 | ) | ||||||
Earnings from unconsolidated trusts | (218 | ) | (220 | ) | (178 | ) | ||||||
Impairment of investment in Bluegreen Corporation | 94,426 | — | — | |||||||||
Impairment of other investments | 14,120 | — | — | |||||||||
(Gain) loss from real estate joint ventures | (182 | ) | 27 | 417 | ||||||||
Share-based compensation expense related to stock options and restricted stock | 990 | 1,962 | 3,250 | |||||||||
Gain on sale of property and equipment | (2,520 | ) | — | (1,329 | ) | |||||||
Gain on sale of equity securities | (1,178 | ) | — | — | ||||||||
Impairment of property and equipment | 114 | 533 | 245 | |||||||||
Impairment of inventory | 3,491 | 226,879 | 38,083 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Inventory of real estate | (19,964 | ) | 26,950 | (255,968 | ) | |||||||
Notes receivable | (63 | ) | 2,903 | (1,640 | ) | |||||||
Other assets | 309 | 2,180 | 5,174 | |||||||||
Income taxes receivable | 27,407 | — | — | |||||||||
Income taxes payable | 2,380 | — | — | |||||||||
Customer deposits | (123 | ) | (23,974 | ) | (8,990 | ) | ||||||
Accounts payable, accrued expenses and other liabilities | (9,900 | ) | (31,662 | ) | 9,824 | |||||||
Net cash used in operating activities | (32,897 | ) | (35,297 | ) | (240,520 | ) | ||||||
Investing activities: | ||||||||||||
Investment in real estate joint ventures | — | (229 | ) | (469 | ) | |||||||
Distributions from real estate joint ventures | 182 | 47 | 576 | |||||||||
(Increase) decrease in restricted cash | (19,081 | ) | (1,321 | ) | 421 | |||||||
Purchase of equity securities | (33,978 | ) | — | — | ||||||||
Acquisition of Pizza Fusion | (3,000 | ) | — | — | ||||||||
Purchase of short-term investments | (9,600 | ) | — | — | ||||||||
Proceeds from sale of equity securities | 18,904 | — | — | |||||||||
Investments in unconsolidated trusts | — | — | (928 | ) | ||||||||
Distributions from unconsolidated trusts | 218 | 220 | 178 | |||||||||
Proceeds from sale of property and equipment | 5,588 | 30 | 1,943 | |||||||||
Deconsolidation of subsidiary cash balance | — | (6,387 | ) | — | ||||||||
Capital expenditures | (1,154 | ) | (38,749 | ) | (29,476 | ) | ||||||
Net cash used in investing activities | (41,921 | ) | (46,389 | ) | (27,755 | ) | ||||||
Financing activities: | ||||||||||||
Proceeds from notes and mortgage notes payable | 27,522 | 236,839 | 379,732 | |||||||||
Proceeds from junior subordinated debentures | — | — | 30,928 | |||||||||
Repayment of notes and mortgage notes payable | (31,130 | ) | (158,923 | ) | (202,927 | ) | ||||||
Cash paid for stock repurchase | (1,439 | ) | — | — | ||||||||
Payments for debt issuance costs | (518 | ) | (1,695 | ) | (3,043 | ) | ||||||
Payments for stock issue costs | — | (196 | ) | — | ||||||||
Proceeds from issuance of common stock | — | 152,847 | — | |||||||||
Cash dividends paid | — | (396 | ) | (1,586 | ) | |||||||
Net cash (used in) provided by financing activities | (5,565 | ) | 228,476 | 203,104 | ||||||||
(Decrease) increase in cash and cash equivalents | $ | (80,383 | ) | 146,790 | (65,171 | ) | ||||||
Cash and cash equivalents at the beginning of period | 195,181 | 48,391 | 113,562 | |||||||||
Cash and cash equivalents at end of period | $ | 114,798 | 195,181 | 48,391 | ||||||||
Supplemental cash flow information | ||||||||||||
Interest paid on borrowings, net of amounts capitalized | $ | 11,101 | 5,927 | 963 | ||||||||
Income taxes (refunded) paid | (29,711 | ) | 4,556 | 17,140 | ||||||||
Supplemental disclosure of non-cash operating, investing and financing activities: | ||||||||||||
Change in shareholders’ equity resulting from the change in other comprehensive (loss) gain, net of taxes | $ | (2,021 | ) | (535 | ) | 776 | ||||||
Change in shareholders’ equity from the net effect of Bluegreen’s capital transactions, net of taxes | 1,225 | (279 | ) | 177 | ||||||||
Decrease in inventory from reclassification to property and equipment | — | 2,859 | 8,412 | |||||||||
Increase in deferred tax liability due to cumulative impact of change in accounting for uncertainties in income taxes (FIN 48 — see Note 16) | — | 260 | — | |||||||||
Assets and liabilities assumed upon acquisition of Pizza Fusion (see Note 3) |
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1. | Description of Business |
F-205
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2. | Summary of Significant Accounting Policies |
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• | Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; | |
• | Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |
• | Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
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For the Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Interest incurred | $ | 22,367 | 50,767 | 42,002 | ||||||||
Interest capitalized | (11,500 | ) | (46,960 | ) | (42,002 | ) | ||||||
Interest expense | $ | 10,867 | 3,807 | — | ||||||||
Interest expensed in cost of sales | $ | 326 | 17,949 | 15,358 | ||||||||
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F-211
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3. | Business Combination |
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Prepaid and other current assets | $ | 148 | ||
Property, plant and equipment | 117 | |||
Intangible assets | 4,324 | |||
Other assets | 15 | |||
Fair value of assets | 4,604 | |||
Accounts payable and other liabilities | 442 | |||
Deposits and deferred fees | 1,127 | |||
Notes payable | 35 | |||
Fair value of liabilities | $ | 1,604 | ||
Net assets acquired | $ | 3,000 | ||
Net cash consideration | $ | 3,000 | ||
4. | Loss per Share |
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For the Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Numerator: | ||||||||||||
Basic loss per common share: | ||||||||||||
Net loss — basic | $ | (140,331 | ) | (234,620 | ) | (9,164 | ) | |||||
Diluted loss per common share: | ||||||||||||
Net loss — basic | $ | (140,331 | ) | (234,620 | ) | (9,164 | ) | |||||
Pro rata share of the net effect of Bluegreen dilutive securities | — | (42 | ) | (100 | ) | |||||||
Net loss — diluted | $ | (140,331 | ) | (234,662 | ) | (9,264 | ) | |||||
Denominator: | ||||||||||||
Basic average shares outstanding | 19,088 | 7,821 | 3,967 | |||||||||
Bonus adjustment factor from registration rights offering | — | — | 1.0197 | |||||||||
Basic average shares outstanding | 19,088 | 7,821 | 4,045 | |||||||||
Net effect of stock options assumed to be exercised | — | — | — | |||||||||
Diluted average shares outstanding | 19,088 | 7,821 | 4,045 | |||||||||
Loss per common share: | ||||||||||||
Basic | $ | (7.35 | ) | (30.00 | ) | (2.27 | ) | |||||
Diluted | $ | (7.35 | ) | (30.00 | ) | (2.29 | ) |
5. | Equity transactions |
Classes of | Dividend | |||||||
Declaration Date | Record Date | Common Stock | per Share | Payment Date | ||||
January 24, 2006 | February 8, 2006 | Class A, Class B | $0.10 | February 15, 2006 | ||||
April 26, 2006 | May 8, 2006 | Class A, Class B | $0.10 | May 15, 2006 | ||||
August 1, 2006 | August 11, 2006 | Class A, Class B | $0.10 | August 18, 2006 | ||||
October 23, 2006 | November 10, 2006 | Class A, Class B | $0.10 | November 17, 2006 | ||||
January 22, 2007 | February 9, 2007 | Class A, Class B | $0.10 | February 16, 2007 |
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6. | Stock Based Compensation |
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Year Ended | Year Ended | Year Ended | ||||
December 31, | December 31, | December 31, | ||||
2008 | 2007 | 2006 | ||||
Expected volatility | 65.47% | 40.05% — 52.59% | 37.37% — 39.80% | |||
Expected dividend yield | 0.00% | 0.00% — 0.83% | 0.39% — 0.61% | |||
Risk-free interest rate | 4.16% | 4.58% — 5.14% | 4.57% — 5.06% | |||
Expected life | 5 years | 5 — 7.5 years | 5 — 7.5 years | |||
Forfeiture rate — executives | 5% | 5% | 5% | |||
Forfeiture rate — non-executives | — | 10% | 10% |
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Weighted | Weighted Average | |||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||
Number of | Exercise | Contractual | Intrinsic | |||||||||||||
Options | Price | Term | Value | |||||||||||||
(Thousands) | ||||||||||||||||
Options outstanding at December 31, 2006 | 378,521 | $ | 103.65 | $ | — | |||||||||||
Granted | 150,489 | 45.92 | — | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | 156,478 | 88.56 | — | |||||||||||||
Options outstanding at December 31, 2007 | 372,532 | $ | 86.66 | 8.00 years | — | |||||||||||
Granted | 36,398 | 6.70 | — | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | 90,459 | 81.85 | — | |||||||||||||
Options outstanding at December 31, 2008 | 318,471 | $ | 78.89 | 7.19 years | $ | — | ||||||||||
Options exercisable at December 31, 2008 | 69,822 | $ | 40.20 | 8.36 years | $ | — | ||||||||||
Stock options available for equity compensation grants at December 31, 2008 | 281,529 | |||||||||||||||
Weighted | ||||||||||||||||
Weighted | Average | |||||||||||||||
Average | Remaining | |||||||||||||||
Number of | Grant Date | Contractual | Aggregate | |||||||||||||
Options | Fair Value | Term | Intrinsic Value | |||||||||||||
(In thousands) | ||||||||||||||||
Non-vested at December 31, 2006 | 358,660 | $ | 103.97 | $ | — | |||||||||||
Grants | 150,489 | 45.92 | — | |||||||||||||
Vested | 13,563 | 45.80 | — | |||||||||||||
Forfeited | 156,478 | 88.56 | — | |||||||||||||
Non-vested at December 31, 2007 | 339,108 | 87.64 | 7.98 years | — | ||||||||||||
Grants | 36,398 | 6.70 | — | |||||||||||||
Vested | 36,398 | 6.70 | — | |||||||||||||
Forfeited | 90,459 | 81.85 | — | |||||||||||||
Non-vested at December 31, 2008 | 248,649 | $ | 89.75 | 6.86 years | $ | — | ||||||||||
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Options Outstanding | ||||||||||||||||
Number of | Remaining | Options Exercisable | ||||||||||||||
Range of Exercise Price | Stock Options | Contractual Life | Options | Exercise Price | ||||||||||||
$ 0.00 - $ 16.07 | 36,398 | 9.46 | 36,398 | $ | 6.70 | |||||||||||
$ 32.13 - $ 48.20 | 78,935 | 8.47 | 13,563 | $ | 45.80 | |||||||||||
$ 64.26 - $ 80.32 | 59,206 | 7.56 | — | $ | — | |||||||||||
$ 80.33 - $ 96.39 | 8,825 | 7.51 | 8,825 | $ | 80.45 | |||||||||||
$ 96.40 - $112.45 | 83,711 | 5.09 | 9,000 | $ | 100.75 | |||||||||||
$112.46 - $128.52 | 150 | 5.22 | — | $ | — | |||||||||||
$144.59 - $160.65 | 51,246 | 6.56 | 2,036 | $ | 159.75 | |||||||||||
318,471 | 7.19 | 69,822 | $ | 40.20 | ||||||||||||
7. | Notes Receivable |
8. | Inventory of Real Estate |
December 31, | ||||||||
2008 | 2007 | |||||||
Land and land development costs | $ | 202,456 | 196,577 | |||||
Construction cost | 463 | 1,062 | ||||||
Capitalized interest | 37,764 | 29,012 | ||||||
Other costs | 635 | 639 | ||||||
$ | 241,318 | 227,290 | ||||||
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9. | Property and Equipment |
December 31, | ||||||||||
Depreciable Life | 2008 | 2007 | ||||||||
Real estate investments | 30-39 years | $ | 97,113 | 101,185 | ||||||
Water and irrigation facilities | 35-50 years | 12,346 | 11,515 | |||||||
Furniture and fixtures and equipment | 3-7 years | 12,259 | 12,131 | |||||||
121,718 | 124,831 | |||||||||
Accumulated depreciation | (12,241 | ) | (6,588 | ) | ||||||
Property and equipment, net | $ | 109,477 | 118,243 | |||||||
10. | Investments |
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December 31, | ||||
2008 | ||||
Prorata share of Bluegreen’s net loss | $ | (154 | ) | |
Amortization of basis difference | 9,150 | |||
Total earnings from Bluegreen Corporation | $ | 8,996 | ||
December 31, | ||||
2008 | ||||
Prorata share of investment in Bluegreen Corporation | $ | 115,065 | ||
Amortization of basis difference | 9,150 | |||
Less: Impairment of investment in Bluegreen Corporation | (94,426 | ) | ||
Investment in Bluegreen Corporation | $ | 29,789 | ||
December 31, | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
Total assets | $ | 1,193,507 | 1,039,578 | |||||
Total liabilities | 781,522 | 632,047 | ||||||
Minority interest | 29,518 | 22,423 | ||||||
Total shareholders’ equity | 382,467 | 385,108 | ||||||
Total liabilities and shareholders’ equity | $ | 1,193,507 | 1,039,578 | |||||
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Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues and other income | $ | 602,043 | 691,494 | 671,509 | ||||||||
Cost and other expenses | 594,698 | 632,280 | 609,018 | |||||||||
Income before minority interest and provision for income taxes | 7,345 | 59,214 | 62,491 | |||||||||
Minority interest | 7,095 | 7,721 | 7,319 | |||||||||
Income before provision for income taxes | 250 | 51,493 | 55,172 | |||||||||
Provision for income taxes | (766 | ) | (19,567 | ) | (20,861 | ) | ||||||
(Loss) income before cumulative effect of change in accounting principle | (516 | ) | 31,926 | 34,311 | ||||||||
Cumulative effect of change in accounting principle, net of tax | — | — | (5,678 | ) | ||||||||
Minority interest in cumulative effect of change in accounting principle | — | — | 1,184 | |||||||||
Net (loss) income | $ | (516 | ) | 31,926 | 29,817 | |||||||
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December 31, | ||||
2008 | ||||
Total cost | $ | 33,978 | ||
Sale of portion of Office Depot common stock | (17,726 | ) | ||
Other-than-temporary impairment | (11,974 | ) | ||
Total fair value | $ | 4,278 | ||
December 31, | ||||
2008 | ||||
Unrealized holding loss arising during the period | $ | (10,796 | ) | |
Less: Reclassification adjustment for gains included in net loss | (1,178 | ) | ||
Less: Reclassification adjustment for other-than-temporary loss | 11,974 | |||
Net unrealized holding gain (loss) | $ | — | ||
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11. | Notes and Mortgage Notes Payable and Junior Subordinated Debentures |
December 31, | ||||||||||||
2008 | 2007 | Interest Rate | Maturity Date | |||||||||
Land acquisition and development mortgage notes payable(a)(f) | $ | 140,034 | 136,266 | From LIBOR + 2.50% to Fixed 6.88% | Range from June 2011 to October 2019 | |||||||
Commercial development mortgage notes payable(b)(f) | 71,905 | 76,278 | From LIBOR + 1.70% to Prime | Range from June 2009 to July 2010 | ||||||||
Borrowing base facility(c) | 37,458 | 39,674 | Prime | March 2011 | ||||||||
Other mortgage notes payable(d) | 11,831 | 12,027 | Fixed 5.47% | April 2015 | ||||||||
Development bonds | 3,291 | 3,350 | Fixed from 6.00% to 6.13% | 2035 | ||||||||
Other borrowings | 381 | 1,143 | Fixed from 2.44% to 9.15% | Range from July 2009 to June 2013 | ||||||||
Total Notes and Mortgage Notes Payable(e) | $ | 264,900 | 268,738 | |||||||||
(a) | Core Communities’ land acquisition and development mortgage notes payable are collateralized by inventory of real estate with approximate net carrying values aggregating $174.5 million and $159.2 million as of December 31, 2008 and 2007, respectively. Core has a credit agreement with a financial institution which provides for borrowing of up to $88.9 million. This facility matures in June 2011 and has a Loan to Value limitation of 55%. As of December 31, 2008, $86.9 million was outstanding, with no current availability for borrowing based on available collateral. Core has a credit agreement with a financial institution which provides for borrowings of up to $33.0 million. This facility matures in October 2019. As of December 31, 2008, $23.2 million is outstanding with no current availability for borrowing based on available collateral. Core has a credit agreement with a financial institution which provides for borrowing of up to $5.0 million. This facility matures in October 2019. As of December 31, 2008, $4.9 million was outstanding, with no current availability for borrowing based on available collateral. These notes accrue interest, payable monthly, at fixed and varying rates and are tied to various indices as noted above. For certain notes, principal payments are required monthly or quarterly as the note dictates. Core had a $50.0 million revolving credit facility with a Loan to Value limitation of 75% for construction financing for the development of the Tradition Hilton Head master-planned community which was subsequently modified in 2008 to $25.0 million. This agreement had a provision that required additional principal payments, known as curtailment payments, in the event that actual sales were below the contractual requirements. A curtailment payment of $14.9 million was paid in January 2008. On June 27, 2008, Core modified this loan agreement, terminating the revolving feature of the loan and reducing an approximately $19 million curtailment payment due in June 2008 to $17.0 million, $5.0 million of which was paid in June 2008. The loan was further modified in December 2008, reducing the loan to $25 million, eliminating the curtailment requirements, extending the loan to February 2012 and increasing the rate to Prime Rate plus 1%, with a floor of 5.00%, and the establishment of an interest reserve classified as restricted cash. As of December 31, 2008, $25.0 million was outstanding, with no current availability for borrowing based on available collateral. The loan accrues interest at the bank’s Prime Rate plus 1.0% (subject to a floor of 5%) and interest is payable monthly. The facility is due and payable on February 28, 2012. |
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(b) | Core Communities has three credit agreements with a financial institution which provides for borrowing of up to $80.3 million. As of December 31, 2008, $71.9 million was outstanding, with no current availability for borrowing based on available collateral. These credit agreements had debt service coverage ratios of up to 1.15. Core has a credit agreement with a financial institution which provides for borrowing of up to $64.3 million. This facility matures in June 2009, has two one-year extension options at the Company’s sole discretion and, as of December 31, 2008, $58.3 million was outstanding, with no current availability for borrowing based on available collateral. In July 2008, one of these credit agreements was refinanced by $9.1 million of construction loans. The new loan has an interest rate of30-day LIBOR plus 210 basis points or Prime Rate, a maturity date of July 2010 with a one year extension subject to certain conditions, and has an outstanding balance of $8.9 million at December 31, 2008. In 2008, Core extended the maturity of another $6.9 million credit agreement from June 2008 to June 2010, which had an outstanding balance of $4.7 million at December 31, 2008. These notes accrue interest at varying rates tied to various indices as noted above and interest is payable monthly. For certain notes, principal payments are required monthly as the note dictates. Core Communities’ commercial development mortgage notes payable are collateralized by commercial property with approximate net carrying values aggregating $96.1 million and $103.2 million as of December 31, 2008 and 2007, respectively. | |
(c) | Levitt and Sons had entered into a $100.0 million revolving working capital, land acquisition, development and residential construction borrowing base facility agreement with a 75% Loan to Value limitation and borrowed $30.2 million under the facility (the “Carolina Oak Loan”). The proceeds were used to finance the inter-company purchase of a 150 acre parcel in Tradition Hilton Head from Core Communities and to refinance a $15.0 million line of credit. In October 2007, in connection with Woodbridge’s acquisition from Levitt and Sons of the membership interests in Carolina Oak, Woodbridge became the obligor for the entire Carolina Oak Loan outstanding balance at the time of acquisition of $34.1 million. The Carolina Oak Loan was modified in connection with the acquisition and had an outstanding balance of $37.5 million at December 31, 2008. The Carolina Oak Loan is collateralized by a first mortgage on the 150 acre parcel in Tradition, Hilton Head with approximate net carrying values aggregating $27.6 million and $38.5 million as of December 31, 2008 and 2007, respectively. The Carolina Oak Loan is due and payable on March 21, 2011 and may be extended at the lender’s sole discretion on the anniversary date of the facility. Interest accrues at the Prime Rate and is payable monthly. At December 31, 2008, there was no immediate availability to draw on this facility based on available collateral. | |
(d) | Woodbridge entered into a mortgage note payable agreement with a financial institution in March 2005 to repay the bridge loan used to temporarily fund the Company’s purchase of an office building in Fort Lauderdale. This note payable is collateralized by the office building with approximate net carrying values aggregating $13.7 million and $14.2 million as of December 31, 2008 and 2007, respectively. The note payable contains a balloon payment provision of approximately $10.4 million at the maturity date in April 2015. Principal and interest are payable monthly. | |
(e) | At December 31, 2008, 2007 and 2006, the Prime Rate as reported by the Wall Street Journal was 3.25%, 7.25% and 8.25%, respectively, and the three-month LIBOR Rate was 1.83%, 4.98% and 5.36%, respectively. | |
(f) | Core Communities credit facilities generally require it to maintain a minimum net worth and minimum working capital levels, the most restrictive of which is a minimum net worth of $75 million and minimum liquidity of $7.5 million. |
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Beginning | ||||||||||||||||||
Optional | ||||||||||||||||||
As of December 31, | Redemption | |||||||||||||||||
Issue Date | 2008 | 2007 | Interest Rate | Maturity Date | Date | |||||||||||||
Levitt Capital Trust I | March 2005 | $ | 23,196 | 23,196 | From fixed 8.11% to LIBOR + 3.85% | March 2035 | March 2010 | |||||||||||
Levitt Capital Trust II | May 2005 | 30,928 | 30,928 | From fixed 8.09% to LIBOR + 3.80% | June 2035 | June 2010 | ||||||||||||
Levitt Capital Trust III | June 2006 | 15,464 | 15,464 | From fixed 9.25% to LIBOR + 3.80% | June 2036 | June 2011 | ||||||||||||
Levitt Capital Trust IV | July 2006 | 15,464 | 15,464 | From fixed 9.35% to LIBOR + 3.80% | September 2036 | September 2011 | ||||||||||||
Total | $ | 85,052 | 85,052 | |||||||||||||||
Year ended December 31, | ||||
2009 | $ | 3,567 | ||
2010 | 8,713 | |||
2011 | 188,520 | |||
2012 | 26,309 | |||
2013 | 1,265 | |||
Thereafter | 121,578 | |||
$ | 349,952 | |||
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12. | Development Bonds Payable |
13. | Employee Benefit Plan |
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14. | Certain Relationships and Related Party Transactions |
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
BFC | $ | 1,180 | 1,057 | 912 | ||||||||
Bancorp | 151 | 101 | 185 | |||||||||
Total fees | $ | 1,331 | 1,158 | 1,097 | ||||||||
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15. | Commitments and Contingencies |
Year ended December 31, | ||||
2009 | $ | 1,279 | ||
2010 | 700 | |||
2011 | 362 | |||
2012 | 190 | |||
2013 | 196 | |||
Thereafter | 1,070 | |||
$ | 3,797 | |||
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Severance | Independent | Surety | ||||||||||||||||||
Related and | Contractor | Bond | ||||||||||||||||||
Benefits | Facilities | Agreements | Accrual | Total | ||||||||||||||||
Balance at December 31, 2006 | $ | — | — | — | — | — | ||||||||||||||
Restructuring charges | 4,864 | 1,010 | 1,497 | 1,826 | 9,197 | |||||||||||||||
Cash payments | (2,910 | ) | — | (76 | ) | — | (2,986 | ) | ||||||||||||
Balance at December 31, 2007 | $ | 1,954 | 1,010 | 1,421 | 1,826 | 6,211 | ||||||||||||||
Restructuring charges | 2,238 | 140 | — | (150 | ) | 2,228 | ||||||||||||||
Cash payments | (4,063 | ) | (446 | ) | (824 | ) | (532 | ) | (5,865 | ) | ||||||||||
Balance at December 31, 2008 | $ | 129 | 704 | 597 | 1,144 | 2,574 | ||||||||||||||
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16. | Income Taxes |
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Current tax benefit (provision): | ||||||||||||
Federal | $ | — | 29,690 | (7,350 | ) | |||||||
State | — | 18 | (1,143 | ) | ||||||||
— | 29,708 | (8,493 | ) | |||||||||
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Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Deferred income tax (provision) benefit: | ||||||||||||
Federal | — | (6,421 | ) | 13,060 | ||||||||
State | — | (1,118 | ) | 1,203 | ||||||||
— | (7,539 | ) | 14,263 | |||||||||
Total income tax benefit | $ | — | 22,169 | 5,770 | ||||||||
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Income tax benefit at expected federal income tax rate of 35% | $ | 49,116 | 89,876 | 5,227 | ||||||||
Benefit for state taxes, net of federal benefit | 5,005 | 9,381 | 936 | |||||||||
Tax-exempt income | 140 | 425 | 489 | |||||||||
Goodwill impairment adjustment | — | — | (458 | ) | ||||||||
Share-based compensation | 21 | (134 | ) | (317 | ) | |||||||
Loss from Levitt and Sons | 20,981 | — | — | |||||||||
Increase in valuation allowance | (75,269 | ) | (76,730 | ) | (425 | ) | ||||||
Other, net | 6 | (649 | ) | 318 | ||||||||
Benefit for income taxes | $ | — | 22,169 | 5,770 | ||||||||
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As of December 31, | ||||||||
2008 | 2007 | |||||||
Deferred tax assets: | ||||||||
Real estate held for sale capitalized for tax purposes in excess of amounts capitalized for financial statement purposes | $ | 926 | 2,016 | |||||
Real estate valuation adjustments | 1,295 | — | ||||||
Investment in Levitt and Sons | 46,393 | 68,339 | ||||||
Share based compensation | 1,773 | 1,427 | ||||||
Accrued and other non-deductible expenses | 904 | 2,237 | ||||||
Investment in Bluegreen | 10,307 | — | ||||||
Investment in Office Depot | 4,620 | — | ||||||
Investment in unconsolidated trusts | 828 | — | ||||||
Federal net operating loss carryforward | 67,050 | 14,191 | ||||||
State net operating loss carryforward | 10,723 | 5,122 | ||||||
Income recognized for tax purposes and deferred for financial statement purposes | 7,510 | 7,228 | ||||||
Other | 4,095 | 2,049 | ||||||
Gross deferred tax assets | 156,424 | 102,609 | ||||||
Valuation allowance | (154,138 | ) | (78,562 | ) | ||||
Total deferred tax assets | 2,286 | 24,047 | ||||||
Deferred tax liabilities: | ||||||||
Investment in Bluegreen | — | 21,768 | ||||||
Property and equipment | 423 | 496 | ||||||
Other | 1,863 | 1,783 | ||||||
Total deferred tax liabilities | 2,286 | 24,047 | ||||||
Net deferred tax asset | — | |||||||
Less the deferred income tax (assets) liabilities at beginning of period | — | (6,635 | ) | |||||
Implementation of FIN 48 | — | (1,798 | ) | |||||
Deferred income taxes on Bluegreen’s unrealized gains, losses and issuance of common stock | — | 894 | ||||||
(Provision) benefit for deferred income taxes | $ | — | (7,539 | ) |
As of December 31, | ||||||||
2008 | 2007 | |||||||
Balance, beginning of period | $ | 78,562 | 425 | |||||
Increase in deferred tax valuation allowance | 75,269 | 76,730 | ||||||
Increase in deferred tax valuation allowance — paid in capital | 307 | 1,407 | ||||||
Balance, end of period | $ | 154,138 | 78,562 | |||||
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Balance at January 1, 2008 | $ | 2,365 | ||
Additions based on tax positions related to the current year | 542 | |||
Additions for tax positions of prior years | — | |||
Reductions for tax positions of prior years | — | |||
Settlements | 33 | |||
Lapse of Statute of Limitations | (575 | ) | ||
Balance at December 31, 2008 | $ | 2,365 | ||
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17. | Other Revenues |
For the Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Other revenues | ||||||||||||
Mortgage & title operations | $ | — | 2,243 | 4,070 | ||||||||
Lease/rental income | 9,892 | 5,803 | 3,254 | |||||||||
Marketing fees | 579 | 1,610 | 1,243 | |||||||||
Impact fees | 254 | — | — | |||||||||
Irrigation revenue | 976 | 802 | 674 | |||||||||
$ | 11,701 | 10,458 | 9,241 | |||||||||
18. | Other Expenses and Interest and Other Income |
For the Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Other expenses | ||||||||||||
Title and mortgage operations expense | $ | — | 1,539 | 2,362 | ||||||||
Loss on disposal of fixed assets | — | 564 | — | |||||||||
Hurricane expense, net of projected recoveries | — | — | 8 | |||||||||
Goodwill impairment | — | — | 1,307 | |||||||||
Surety bond indemnification | — | 1,826 | — | |||||||||
Total other expenses | $ | — | 3,929 | 3,677 | ||||||||
Interest and other income | ||||||||||||
Interest income | $ | 3,264 | 4,046 | 2,882 | ||||||||
Gain on sale of fixed assets | 2,520 | 30 | 1,329 | |||||||||
Gain on sale of equity securities | 1,178 | — | — | |||||||||
Forfeited buyer deposits | 371 | 6,196 | 2,700 | |||||||||
Other income | 697 | 992 | 933 | |||||||||
Interest and other income | $ | 8,030 | 11,264 | 7,844 | ||||||||
19. | Fair Value Measurements |
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• | Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; | |
• | Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |
• | Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Fair Value at | ||||||||
Fair Value Hierarchy | December 31, 2008 | |||||||
Investment in Bluegreen Corporation | Level 1 | $ | 29,789 | |||||
Investment in unconsolidated trusts | Level 3 | 406 | ||||||
Investment in other equity securities | Level 1 | 4,278 | ||||||
$ | 34,473 | |||||||
20. | Litigation |
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21. | Segment Reporting |
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Other | ||||||||||||||||
Year Ended December 31, 2008 | Land | Operations | Eliminations | Total | ||||||||||||
Revenues: | ||||||||||||||||
Sales of real estate | $ | 11,268 | 2,484 | 85 | 13,837 | |||||||||||
Other revenues | 10,592 | 1,109 | — | 11,701 | ||||||||||||
Total revenues | 21,860 | 3,593 | 85 | 25,538 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales of real estate | 6,632 | 16,151 | (10,055 | ) | 12,728 | |||||||||||
Selling, general and administrative expenses | 24,608 | 26,717 | (571 | ) | 50,754 | |||||||||||
Interest expense | 3,637 | 8,315 | (1,085 | ) | 10,867 | |||||||||||
Total costs and expenses | 34,877 | 51,183 | (11,711 | ) | 74,349 | |||||||||||
Earnings from Bluegreen Corporation | — | 8,996 | — | 8,996 | ||||||||||||
Impairment of investment in Bluegreen Corporation | — | (94,426 | ) | — | (94,426 | ) | ||||||||||
Impairment of other investments | — | (14,120 | ) | — | (14,120 | ) | ||||||||||
Interest and other income | 5,685 | 4,001 | (1,656 | ) | 8,030 | |||||||||||
(Loss) income before income taxes | (7,332 | ) | (143,139 | ) | 10,140 | (140,331 | ) | |||||||||
Benefit for income taxes | — | — | — | — | ||||||||||||
Net (loss) income | $ | (7,332 | ) | (143,139 | ) | 10,140 | (140,331 | ) | ||||||||
Inventory of real estate | $ | 208,033 | 34,719 | (1,434 | ) | 241,318 | ||||||||||
Total assets | $ | 339,941 | 220,587 | (1,274 | ) | 559,254 | ||||||||||
Total debt | $ | 215,332 | 134,620 | — | 349,952 | |||||||||||
Total liabilities | $ | 248,969 | 185,513 | 5,242 | 439,724 | |||||||||||
Total shareholders’ equity | $ | 90,972 | 35,074 | (6,516 | ) | 119,530 | ||||||||||
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Table of Contents
Primary | Tennessee | Other | ||||||||||||||||||||||
Year Ended December 31, 2007 | Homebuilding | Homebuilding | Land | Operations | Eliminations | Total | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Sales of real estate | $ | 345,666 | 42,042 | 16,567 | 6,574 | (734 | ) | 410,115 | ||||||||||||||||
Other revenues | 2,243 | — | 7,585 | 952 | (322 | ) | 10,458 | |||||||||||||||||
Total revenues | 347,909 | 42,042 | 24,152 | 7,526 | (1,056 | ) | 420,573 | |||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of sales of real estate | 501,206 | 51,360 | 7,447 | 16,793 | (3,565 | ) | 573,241 | |||||||||||||||||
Selling, general and administrative expenses | 61,568 | 5,010 | 19,077 | 32,508 | (239 | ) | 117,924 | |||||||||||||||||
Interest expense | 7,258 | 151 | 2,629 | 1,073 | (7,304 | ) | 3,807 | |||||||||||||||||
Other expenses | 1,539 | — | — | 2,390 | — | 3,929 | ||||||||||||||||||
Total costs and expenses | 571,571 | 56,521 | 29,153 | 52,764 | (11,108 | ) | 698,901 | |||||||||||||||||
Earnings from Bluegreen Corporation | — | — | — | 10,275 | — | 10,275 | ||||||||||||||||||
Interest and other income | 6,933 | 83 | 4,489 | 7,367 | (7,608 | ) | 11,264 | |||||||||||||||||
(Loss) income before income taxes | (216,729 | ) | (14,396 | ) | (512 | ) | (27,596 | ) | 2,444 | (256,789 | ) | |||||||||||||
Benefit (provision)for income taxes | 1,396 | (1,700 | ) | (5,910 | ) | 34,297 | (5,914 | ) | 22,169 | |||||||||||||||
Net (loss) income | $ | (215,333 | ) | (16,096 | ) | (6,422 | ) | 6,701 | (3,470 | ) | (234,620 | ) | ||||||||||||
Inventory of real estate | $ | 38,457 | — | 189,903 | 6,262 | (7,332 | ) | 227,290 | ||||||||||||||||
Total assets | $ | 38,749 | — | 342,696 | 336,713 | (5,307 | ) | 712,851 | ||||||||||||||||
Total debt | $ | 39,674 | — | 216,027 | 98,089 | — | 353,790 | |||||||||||||||||
Total liabilities | $ | 41,402 | — | 214,393 | 184,601 | 11,349 | 451,745 | |||||||||||||||||
Total shareholders’ equity | $ | (2,653 | ) | — | 128,303 | 152,112 | (16,656 | ) | 261,106 | |||||||||||||||
F-243
Table of Contents
Primary | Tennessee | Other | ||||||||||||||||||||||
Year Ended December 31, 2006 | Homebuilding | Homebuilding | Land | Operations | Eliminations | Total | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Sales of real estate | $ | 424,420 | 76,299 | 69,778 | 11,041 | (15,452 | ) | 566,086 | ||||||||||||||||
Other revenues | 4,070 | — | 3,816 | 1,435 | (80 | ) | 9,241 | |||||||||||||||||
Total revenues | 428,490 | 76,299 | 73,594 | 12,476 | (15,532 | ) | 575,327 | |||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of sales of real estate | 367,252 | 72,807 | 42,662 | 11,649 | (11,409 | ) | 482,961 | |||||||||||||||||
Selling, general and administrative expenses | 65,052 | 12,806 | 15,119 | 28,174 | — | 121,151 | ||||||||||||||||||
Other expenses | 2,362 | 1,307 | — | 8 | ��� | 3,677 | ||||||||||||||||||
Total costs and expenses | 434,666 | 86,920 | 57,781 | 39,831 | (11,409 | ) | 607,789 | |||||||||||||||||
Earnings from Bluegreen Corporation | — | — | — | 9,684 | — | 9,684 | ||||||||||||||||||
Interest and other income | 2,982 | 127 | 2,650 | 4,059 | (1,974 | ) | 7,844 | |||||||||||||||||
(Loss) income before income taxes | (3,194 | ) | (10,494 | ) | 18,463 | (13,612 | ) | (6,097 | ) | (14,934 | ) | |||||||||||||
Benefit (provision) for income taxes | 1,508 | 3,241 | (6,936 | ) | 5,639 | 2,318 | 5,770 | |||||||||||||||||
Net (loss) income | $ | (1,686 | ) | (7,253 | ) | 11,527 | (7,973 | ) | (3,779 | ) | (9,164 | ) | ||||||||||||
Inventory of real estate | $ | 608,358 | 56,214 | 176,356 | 13,269 | (32,157 | ) | 822,040 | ||||||||||||||||
Total assets | $ | 644,447 | 62,065 | 271,169 | 146,116 | (33,131 | ) | 1,090,666 | ||||||||||||||||
Total debt | $ | 378,633 | 39,274 | 95,980 | 101,816 | — | 615,703 | |||||||||||||||||
Total liabilities | $ | 529,476 | 55,524 | 133,015 | 49,357 | (19,945 | ) | 747,427 | ||||||||||||||||
Total shareholders’ equity | $ | 114,971 | 6,541 | 138,154 | 96,759 | (13,186 | ) | 343,239 | ||||||||||||||||
22. | Parent Company Financial Statements |
F-244
Table of Contents
December 31, | ||||||||
2008 | 2007 | |||||||
(In thousands except share data) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 94,725 | 161,557 | |||||
Restricted cash | 16,715 | — | ||||||
Inventory of real estate | 6,818 | 5,950 | ||||||
Investment in Bluegreen Corporation | 29,789 | 116,014 | ||||||
Investment in Unconsolidated Trusts | 419 | 2,565 | ||||||
Investments in wholly-owned subsidiaries | 52,272 | 110,598 | ||||||
Other assets | 52,279 | 32,848 | ||||||
Total assets | $ | 253,017 | 429,532 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Accounts payable and accrued liabilities | $ | 4,604 | 42,932 | |||||
Loss in excess of investment in subsidiary | 39,432 | 39,432 | ||||||
Notes payable | 238 | 1,010 | ||||||
Junior subordinated debentures | 85,052 | 85,052 | ||||||
Income tax payable | 4,161 | — | ||||||
Total liabilities | 133,487 | 168,426 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, $0.01 par value Authorized: 5,000,000 shares Issued and outstanding: no shares | — | — | ||||||
Common stock, Class A, $0.01 par value Authorized: 30,000,000 shares Issued: 19,042,149 and 19,010,804 shares, respectively | 190 | 190 | ||||||
Common stock, Class B, $0.01 par value Authorized: 2,000,000 shares Issued and outstanding: 243,807 shares | 2 | 2 |
F-245
Table of Contents
December 31, | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
Additional paid-in capital | 339,780 | 337,565 | ||||||
Accumulated deficit | (218,868 | ) | (78,537 | ) | ||||
Accumulated other comprehensive (loss) income | (135 | ) | 1,886 | |||||
120,969 | 261,106 | |||||||
Less — common stock in treasury, at cost (2,385,624 in 2008) | (1,439 | ) | — | |||||
Total shareholders’ equity | 119,530 | 261,106 | ||||||
Total liabilities and shareholders’ equity | $ | 253,017 | 429,532 | |||||
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Earnings from Bluegreen Corporation | $ | 8,996 | 10,275 | 9,684 | ||||||||
Other revenues | 2,616 | 7,363 | 3,497 | |||||||||
Costs and expenses(a) | 123,618 | 44,880 | 28,158 | |||||||||
Loss before income taxes | (112,006 | ) | (27,242 | ) | (14,977 | ) | ||||||
Benefit for income taxes | — | 34,567 | 6,162 | |||||||||
Net (loss) income before undistributed earnings from subsidiaries | (112,006 | ) | 7,325 | (8,815 | ) | |||||||
Loss from consolidated subsidiaries, net of income taxes | (28,325 | ) | (241,945 | ) | (349 | ) | ||||||
Net loss | $ | (140,331 | ) | (234,620 | ) | (9,164 | ) | |||||
(a) | Includes another-than-temporary impairment charge of $94.4 million incurred during the year ended December 31, 2008 related to the Company’s investment in Bluegreen Corporation and a $2.1 million impairment charge related to the Company’s investment in unconsolidated trusts. |
F-246
Table of Contents
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Operating activities: | ||||||||||||
Net loss | $ | (140,331 | ) | (234,620 | ) | (9,164 | ) | |||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
Depreciation and amortization | 2,595 | 2,664 | 1,352 | |||||||||
(Decrease) increase in deferred income taxes | — | (19,240 | ) | 2,953 | ||||||||
Equity from earnings in Bluegreen Corporation | (8,996 | ) | (10,275 | ) | (9,684 | ) | ||||||
Equity from loss in consolidated subsidiaries | 28,325 | 241,945 | 349 | |||||||||
Equity from loss in joint ventures | — | — | 2 | |||||||||
Equity in earnings from unconsolidated trusts | (218 | ) | (220 | ) | (178 | ) | ||||||
Share-based compensation expense related to stock options and restricted stock | 990 | 1,962 | 3,250 | |||||||||
Impairment of investment in Bluegreen Corporation | 94,426 | — | — | |||||||||
Impairment of other investment | 2,146 | — | — | |||||||||
Dividends received from consolidated subsidiaries | 30,000 | 13,073 | 12,086 | |||||||||
Write off of property and equipment | 114 | 536 | — | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Inventory of real estate | (868 | ) | 1,767 | (3,552 | ) | |||||||
Other assets | (1,247 | ) | (1,153 | ) | 1,404 | |||||||
Accounts payable, accrued expenses and other liabilities | (4,694 | ) | 5,043 | (9,444 | ) | |||||||
Current income tax | 29,743 | (6,249 | ) | — | ||||||||
Net cash provided by (used in) by operating activities | 31,985 | (4,767 | ) | (10,626 | ) | |||||||
Investing activities: | ||||||||||||
Distributions and advances from real estate joint ventures | — | — | 153 | |||||||||
Purchase of short-term investments | (9,600 | ) | — | — | ||||||||
Increase in restricted cash | (16,715 | ) | — | — | ||||||||
Investment in unconsolidated trusts | — | — | (928 | ) | ||||||||
Distributions from unconsolidated trusts | 218 | 220 | 178 | |||||||||
Purchase of property, plant and equipment | — | (41 | ) | (7,895 | ) | |||||||
Net cash (used in) provided by investing activities | (26,097 | ) | 179 | (8,492 | ) | |||||||
Financing activities: | ||||||||||||
Proceeds from notes and mortgage notes payable | — | 151 | 479 | |||||||||
Repayment of notes and mortgage notes payable | (772 | ) | (2,066 | ) | (686 | ) | ||||||
Proceeds from junior subordinated notes | — | — | 30,928 | |||||||||
Cash paid for stock repurchase | (1,439 | ) | — | — | ||||||||
Proceeds from issuance of common stock | — | 152,847 | — | |||||||||
Payments for debt offering cost | — | — | (1,077 | ) | ||||||||
Payments for stock issuance costs | — | (196 | ) | — | ||||||||
Net (decrease) increase in intercompany due | (70,509 | ) | 6,905 | (43,858 | ) | |||||||
Cash dividends paid | — | (396 | ) | (1,585 | ) | |||||||
Net cash (used in) provided by financing activities | (72,720 | ) | 157,245 | (15,799 | ) | |||||||
(Decrease) increase in cash and cash equivalents | (66,832 | ) | 152,657 | (34,917 | ) | |||||||
Cash and cash equivalents at the beginning of period | 161,557 | 8,900 | 43,817 | |||||||||
Cash and cash equivalents at end of period | $ | 94,725 | 161,557 | 8,900 | ||||||||
F-247
Table of Contents
23. | Selected Quarterly Financial Data (unaudited) |
Year Ended December 31, 2008 | ||||||||||||||||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | 2008 | ||||||||||||||||
Revenues | $ | 3,118 | 5,139 | 13,677 | 3,604 | 25,538 | ||||||||||||||
Costs and expenses | $ | (15,679 | ) | (17,242 | ) | (22,116 | ) | (19,312 | ) | (74,349 | ) | |||||||||
Earnings from Bluegreen Corporation | $ | 526 | 1,211 | 2,241 | 5,018 | 8,996 | ||||||||||||||
Impairment of investment in Bluegreen Corporation | $ | — | — | (53,576 | ) | (40,850 | ) | (94,426 | ) | |||||||||||
Impairment of other investments | $ | — | — | — | (14,120 | ) | (14,120 | ) | ||||||||||||
Net loss | $ | (10,431 | ) | (8,942 | ) | (56,003 | ) | (64,955 | ) | (140,331 | ) | |||||||||
Loss per share, basic and diluted | $ | (0.54 | ) | (0.46 | ) | (2.91 | ) | (3.49 | ) | (7.35 | ) |
Year Ended December 31, 2007 | ||||||||||||||||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter(a) | 2007 | ||||||||||||||||
Revenues | $ | 143,795 | 127,840 | 125,824 | 23,114 | 420,573 | ||||||||||||||
Costs and expenses | $ | (146,296 | ) | (205,616 | ) | (308,315 | ) | (38,674 | ) | (698,901 | ) | |||||||||
Earnings from Bluegreen Corporation | $ | 1,744 | 1,357 | 4,418 | 2,756 | 10,275 | ||||||||||||||
Net income (loss) | $ | 976 | (58,087 | ) | (169,168 | ) | (8,341 | ) | (234,620 | ) | ||||||||||
Earnings (loss) per share, basic and diluted | $ | 0.24 | (14.36 | ) | (41.80 | ) | (0.43 | ) | (30.00 | ) | ||||||||||
Dividends declared per common share | $ | 0.10 | — | — | — | 0.10 |
(a) | As previously reported, Woodbridge deconsolidated Levitt and Sons from its consolidated statements of financial condition and statements of operations as of November 9, 2007, which resulted in the Company not recording results of operations associated with Levitt and Sons after November 9, 2007. |
24. | Financial Information of Levitt and Sons |
F-248
Table of Contents
November 9, | ||||
2007 | ||||
(In thousands) | ||||
Cash | $ | 6,387 | ||
Inventory | 356,294 | |||
Property and equipment | 1,681 | |||
Other assets | 8,974 | |||
Assets deconsolidated | 373,336 | |||
Accounts payable and other accrued liabilities | 50,709 | |||
Customer deposits | 18,007 | |||
Notes and mortgage payable | 344,052 | |||
Due to Woodbridge | 67,831 | |||
Liabilities deconsolidated | $ | 480,599 | ||
Net equity/negative investment | $ | (107,263 | ) |
Net equity/negative investment | (107,263 | ) | ||
Due to Woodbridge | 67,831 | |||
Deferred revenue(a) | (15,780 | ) | ||
$ | (55,212 | ) | ||
(a) | During the fourth quarter of 2008, deferred revenue was adjusted by $2.3 million due to a reclassification on intercompany land sales between Core and Carolina Oak that had been inadvertently recorded against the negative investment. As a result of this reclassification the net negative investment was reduced from $55.2 million to $52.9 million as of December 31, 2008. |
F-249
Table of Contents
2008 | 2007 | |||||||
(In thousands) | ||||||||
Assets | ||||||||
Cash | $ | 4,712 | 5,365 | |||||
Restricted cash | 885 | — | ||||||
Inventory | 166,358 | 208,686 | ||||||
Property and equipment | — | 55 | ||||||
Other assets | 19,657 | 23,810 | ||||||
Total assets | $ | 191,612 | 237,916 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Accounts payable and other accrued liabilities | $ | 719 | 469 | |||||
Due to Woodbridge | 2,870 | 748 | ||||||
Liabilities subject to compromise(A) | 327,707 | 354,748 | ||||||
Shareholders’ deficit | $ | (139,684 | ) | (118,049 | ) | |||
Total liabilities and shareholders’ equity | $ | 191,612 | 237,916 | |||||
(A) | Liabilities Subject to Compromise |
Accounts payable and other accrued liabilities | $ | 54,954 | ||
Customer deposits | 15,754 | |||
Due to Woodbridge | 87,182 | |||
Deficiency claim associated with secured debt | 45,458 | |||
Notes and mortgage payable | 124,359 | |||
Total liabilities subject to compromise | $ | 327,707 | ||
F-250
Table of Contents
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues | ||||||||||||
Sales of real estate | $ | 32,505 | 397,561 | 500,719 | ||||||||
Other revenues | 2 | 2,245 | 4,070 | |||||||||
Total revenues | 32,507 | 399,806 | 504,789 | |||||||||
Costs and expenses | ||||||||||||
Cost of sales of real estate | 42,864 | 562,763 | 440,059 | |||||||||
Selling, general and administrative expenses | 4,340 | 70,848 | 77,858 | |||||||||
Total costs and expenses | 47,204 | 633,611 | 517,917 | |||||||||
Bankruptcy related items, net | (7,049 | ) | (3,525 | ) | — | |||||||
Other income, net of interest and other expense | 111 | (1,928 | ) | (560 | ) | |||||||
Loss before income taxes | (21,635 | ) | (239,258 | ) | (13,688 | ) | ||||||
(Provision) benefit for income taxes | — | (303 | ) | 4,749 | ||||||||
Net loss | $ | (21,635 | ) | (239,561 | ) | (8,939 | ) | |||||
25. | Subsequent Event |
F-251
Table of Contents
F-252
Table of Contents
Woodbridge Holdings Corporation
Real Estate Investments and Accumulated Depreciation
As of December 31, 2008
Date of | ||||||||||||||||||||||||||||||
Building and | Total | Accumulated | Net Book | Depreciable | Acquisition/ | |||||||||||||||||||||||||
Land | Improvement | Cost | Depreciation | Value | Encumbrances | Lives (Years) | Completion | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||
Cypress Creek Office Bldg Ft. Laud. | $ | 2,250 | $ | 13,355 | $ | 15,605 | $ | (1,892 | ) | $ | 13,713 | $ | 11,831 | S/L 30 | October 2004 | |||||||||||||||
The Village Center Port St. Lucie | 1,449 | 19,011 | 20,460 | (2,900 | ) | 17,560 | 14,381 | S/L 39 | February 2005 | |||||||||||||||||||||
The Landing Port St. Lucie | 5,988 | 55,060 | 61,048 | (1,950 | ) | 59,098 | 60,624 | S/L 39 | November 2007 | |||||||||||||||||||||
$ | 9,687 | $ | 87,426 | $ | 97,113 | $ | (6,742 | ) | $ | 90,371 | $ | 86,836 | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Balance, beginning of year | $ | 101,185 | 40,562 | 36,897 | ||||||||
Improvements | 348 | 60,623 | 6,898 | |||||||||
Sales | (2,675 | ) | — | (3,233 | ) | |||||||
Adjustments | (1,745 | ) | — | — | ||||||||
Balance, end of year | $ | 97,113 | 101,185 | 40,562 | ||||||||
For the Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Balance, beginning of year | $ | (3,065 | ) | (1,942 | ) | (732 | ) | |||||
Depreciation expense | (3,677 | ) | (1,123 | ) | (1,210 | ) | ||||||
Balance, end of year | $ | (6,742 | ) | (3,065 | ) | (1,942 | ) | |||||
F-253
Table of Contents
by and among
BFC FINANCIAL CORPORATION,
WDG MERGER SUB, LLC
and
WOODBRIDGE HOLDINGS CORPORATION
Table of Contents
DEFINITIONS | A-1 | |||
THE MERGER | A-6 | |||
Merger | A-6 | |||
Consummation of the Merger; Effective Time | A-6 | |||
Effect of the Merger | A-6 | |||
Articles of Organization and Operating Agreement | A-6 | |||
Board of Managers | A-6 | |||
Officers | A-6 | |||
Additional Actions | A-6 | |||
CONVERSION OF SHARES; CONSIDERATION | A-7 | |||
Merger Consideration | A-7 | |||
Exchange of Certificates | A-7 | |||
Stock Transfer Books | A-9 | |||
Woodbridge Options and Restricted Stock | A-9 | |||
Appraisal Rights | A-9 | |||
REPRESENTATIONS AND WARRANTIES OF BFC AND MERGER SUB | A-10 | |||
Organization; Good Standing; Power | A-10 | |||
Capitalization | A-10 | |||
Authorization; No Violation | A-11 | |||
Subsidiaries | A-11 | |||
Exchange Act Reports; Financial Statements | A-12 | |||
Absence of Certain Changes | A-12 | |||
Taxes | A-12 | |||
BFC Material Contracts | A-12 | |||
Investigations; Litigation | A-13 | |||
Insurance | A-13 | |||
Compliance with Laws | A-13 | |||
Labor Matters | A-13 | |||
Employee Benefit Plans | A-13 | |||
Related Party Transactions | A-14 | |||
Broker’s and Finder’s Fees | A-14 | |||
Registration Statement; Joint Proxy Statement/Prospectus | A-14 | |||
Tax Treatment | A-14 | |||
Opinion of Financial Advisor | A-14 | |||
Sarbanes-Oxley | A-14 | |||
Certain Business Practices | A-14 | |||
Operations of Merger Sub | A-15 | |||
Full Disclosure | A-15 | |||
REPRESENTATIONS AND WARRANTIES OF WOODBRIDGE | A-15 | |||
Organization; Good Standing; Power | A-15 | |||
Capitalization | A-15 | |||
Authorization; No Violation | A-16 | |||
Subsidiaries | A-17 | |||
Exchange Act Reports; Financial Statements | A-17 |
Annex A-i
Table of Contents
Absence of Certain Changes | A-17 | |||
Taxes | A-18 | |||
Investigations, Litigation | A-18 | |||
Woodbridge Material Contracts | A-18 | |||
Broker’s and Finder’s Fees | A-18 | |||
Registration Statement; Joint Proxy Statement/Prospectus | A-19 | |||
State Takeover Laws | A-19 | |||
Opinion of Financial Advisor | A-19 | |||
Tax Treatment | A-19 | |||
Full Disclosure | A-19 | |||
CONDUCT OF BUSINESS PRIOR TO THE EFFECTIVE TIME | A-19 | |||
Conduct of Business by Woodbridge | A-19 | |||
Conduct of Business by BFC | A-20 | |||
Notice | A-20 | |||
ADDITIONAL COVENANTS AND AGREEMENTS | A-21 | |||
Access to Information | A-21 | |||
Public Announcements | A-21 | |||
Reasonable Efforts | A-21 | |||
No Solicitation | A-21 | |||
Shareholder Meetings | A-23 | |||
Registration Statement; Joint Proxy Statement/Prospectus | A-23 | |||
Employee Benefit Plans | A-24 | |||
Indemnification | A-24 | |||
Further Assurances | A-25 | |||
Tax Treatment | A-25 | |||
Comfort Letters | A-26 | |||
Shareholder Litigation | A-26 | |||
HSR Act | A-26 | |||
Appointment of Directors and Executive Officer | A-26 | |||
Cancellation of Woodbridge Options | A-26 | |||
Cancellation of Woodbridge Rights Agreement | A-26 | |||
CONDITIONS PRECEDENT TO OBLIGATIONS | A-26 | |||
Conditions to Each Party’s Obligation to Effect the Merger | A-26 | |||
Conditions to Woodbridge’s Obligation to Effect the Merger | A-27 | |||
Conditions to BFC’s and Merger Sub’s Obligation to Effect the Merger | A-28 | |||
TERMINATION, AMENDMENT AND WAIVER | A-29 | |||
Termination of the Agreement | A-29 | |||
Effect of Termination | A-30 | |||
Amendment and Waiver | A-30 | |||
MISCELLANEOUS | A-30 | |||
Survival of the Representations and Warranties | A-30 | |||
Payment of Expenses | A-30 | |||
Binding Effect | A-30 | |||
Governing Law | A-30 | |||
Counterparts | A-30 |
Annex A-ii
Table of Contents
Notices | A-31 | |||
Entire Agreement; Assignment | A-31 | |||
Headings | A-31 | |||
Knowledge of the Parties | A-31 | |||
Attorneys’ Fees | A-32 | |||
No Third Party Beneficiary | A-32 | |||
Injunctive Relief | A-32 | |||
Jurisdiction; Venue | A-32 | |||
Severability | A-32 | |||
Waiver | A-32 | |||
Special Committee | A-32 | |||
Time of the Essence | A-32 |
Annex A-iii
Table of Contents
Annex A-1
Table of Contents
Annex A-2
Table of Contents
Annex A-3
Table of Contents
Annex A-4
Table of Contents
Annex A-5
Table of Contents
Annex A-6
Table of Contents
Annex A-7
Table of Contents
Annex A-8
Table of Contents
Annex A-9
Table of Contents
Annex A-10
Table of Contents
Annex A-11
Table of Contents
Annex A-12
Table of Contents
Annex A-13
Table of Contents
Annex A-14
Table of Contents
Annex A-15
Table of Contents
Annex A-16
Table of Contents
Annex A-17
Table of Contents
Annex A-18
Table of Contents
Annex A-19
Table of Contents
Annex A-20
Table of Contents
Annex A-21
Table of Contents
Annex A-22
Table of Contents
Annex A-23
Table of Contents
Annex A-24
Table of Contents
Annex A-25
Table of Contents
Annex A-26
Table of Contents
Annex A-27
Table of Contents
Annex A-28
Table of Contents
Annex A-29
Table of Contents
Annex A-30
Table of Contents
Annex A-31
Table of Contents
Annex A-32
Table of Contents
a Florida corporation
By: | /s/ Alan B. Levan |
a Florida limited liability company
By: | /s/ Alan B. Levan |
a Florida corporation
By: | /s/ Seth M. Wise |
Annex A-33
Table of Contents
Annex B-1
Table of Contents
Annex B-2
Table of Contents
Annex B-3
Table of Contents
Annex C-1
Table of Contents
Annex C-2
Table of Contents
Annex C-3
Table of Contents
TO THE
AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
BFC FINANCIAL CORPORATION
Annex D-1
Table of Contents
OF
BFC FINANCIAL CORPORATION
Annex E-1
Table of Contents
Annex E-2
Table of Contents
Annex E-3
Table of Contents
Annex E-4
Table of Contents
Annex E-5
Table of Contents
Annex E-6
Table of Contents
Annex E-7
Table of Contents
Annex E-8
Table of Contents
Annex E-9
Table of Contents
BOOKS AND RECORDS
Annex E-10
Table of Contents
Annex E-11
Table of Contents
Annex F-1
Table of Contents
Annex F-2
Table of Contents
Annex F-3
Table of Contents
Annex F-4
Table of Contents
Annex F-5
Table of Contents
Annex F-6
Table of Contents
Annex F-7
Table of Contents
Annex F-8
Table of Contents
Item 20. | Indemnification of Directors and Officers. |
Item 21. | Exhibits and Financial Statement Schedules. |
Exhibit | ||||
Number | Exhibit Description | |||
2 | .1 | Agreement and Plan of Merger, dated as of July 2, 2009, by and among BFC Financial Corporation, WDG Merger Sub, LLC and Woodbridge Holdings Corporation (included as Annex A to the joint proxy statement/prospectus that forms a part of this registration statement) | ||
3 | .1.1 | Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective October 8, 1997 (incorporated by reference to Exhibit 3.1 to BFC Financial Corporation’s Registration Statement onForm 8-A, filed with the SEC on October 16, 1997) | ||
3 | .1.2 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective June 18, 2002 (incorporated by reference to Exhibit 4 to BFC Financial Corporation’s Current Report onForm 8-K, filed with the SEC on June 18, 2002) | ||
3 | .1.3 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective April 15, 2003 (incorporated by reference to Appendix B to BFC Financial Corporation’s Definitive Proxy Statement on Schedule 14A, filed with the SEC on April 18, 2003) | ||
3 | .1.4 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective February 7, 2005 (incorporated by reference to Appendix A to BFC Financial Corporation’s Definitive Information Statement on Schedule 14C, filed with the SEC on January 18, 2005) | ||
3 | .1.5 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective June 22, 2004, as amended on December 17, 2008 (incorporated by reference to Exhibit 3.1 to BFC Financial Corporation’s Current Report onForm 8-K, filed with the SEC on December 18, 2008) | ||
3 | .1.6 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective May 19, 2009 (incorporated by reference to Appendix A to BFC Financial Corporation’s Definitive Proxy Statement on Schedule 14A, filed with the SEC on April 29, 2009) | ||
3 | .1.7 | Form of Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation to become effective as of the effective time of the merger described in this registration statement (included as Annex D to the joint proxy statement/prospectus that forms a part of this registration statement) | ||
3 | .2.1 | By-laws of BFC Financial Corporation, as amended (incorporated by reference to Exhibit 3.3 to BFC Financial Corporation’s Annual Report onForm 10-K for the year ended December 31, 2007, filed with the SEC on March 17, 2008) | ||
3 | .2.2 | Form of By-laws of BFC Financial Corporation, as amended, to become effective as of the effective time of the merger described in this registration statement (included as Annex E to the joint proxy statement/prospectus that forms a part of this registration statement) |
II-1
Table of Contents
Exhibit | ||||
Number | Exhibit Description | |||
5 | .1 | Opinion of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. regarding the legality of the securities being issued | ||
8 | .1 | Opinion of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. relating to tax matters (included in Exhibit 5.1) | ||
23 | .1 | Consent of PricewaterhouseCoopers LLP relating to BFC Financial Corporation’s consolidated financial statements | ||
23 | .2 | Consent of PricewaterhouseCoopers LLP relating to Woodbridge Holdings Corporation’s consolidated financial statements | ||
23 | .3 | Consent of Ernst & Young LLP relating to Bluegreen Corporation’s consolidated financial statements | ||
23 | .4 | Consent of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. (included in Exhibit 5.1) | ||
24 | .1* | Power of Attorney | ||
99 | .1 | Form of BFC Financial Corporation proxy cards | ||
99 | .2 | Form of Woodbridge Holdings Corporation proxy card | ||
99 | .3 | Unaudited financial statements of Bluegreen Corporation for the three and six months ended June 30, 2008 and 2009 | ||
99 | .4* | Audited financial statements of Bluegreen Corporation for the years ended December 31, 2006, 2007 and 2008 |
* | Previously filed. |
Item 22. | Undertakings. |
II-2
Table of Contents
II-3
Table of Contents
By: | /s/ Alan B. Levan |
Signature | Title | Date | ||||
/s/ Alan B. Levan Alan B. Levan | Chairman, Chief Executive Officer and President | August 14, 2009 | ||||
* John E. Abdo | Vice-Chairman | August 14, 2009 | ||||
/s/ John K. Grelle John K. Grelle | Executive Vice President and Chief Financial Officer | August 14, 2009 | ||||
/s/ Maria R. Scheker Maria R. Scheker | Chief Accounting Officer | August 14, 2009 | ||||
* D. Keith Cobb | Director | August 14, 2009 | ||||
* Oscar Holzmann | Director | August 14, 2009 | ||||
* Neil Sterling | Director | August 14, 2009 | ||||
*By: | /s/ Alan B. Levan Alan B. Levan, Attorney-in-Fact |
II-4
Table of Contents
Exhibit | ||||
Number | Exhibit Description | |||
2 | .1 | Agreement and Plan of Merger, dated as of July 2, 2009, by and among BFC Financial Corporation, WDG Merger Sub, LLC and Woodbridge Holdings Corporation (included as Annex A to the joint proxy statement/prospectus that forms a part of this registration statement) | ||
3 | .1.1 | Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective October 8, 1997 (incorporated by reference to Exhibit 3.1 to BFC Financial Corporation’s Registration Statement onForm 8-A, filed with the SEC on October 16, 1997) | ||
3 | .1.2 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective June 18, 2002 (incorporated by reference to Exhibit 4 to BFC Financial Corporation’s Current Report onForm 8-K, filed with the SEC on June 18, 2002) | ||
3 | .1.3 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective April 15, 2003 (incorporated by reference to Appendix B to BFC Financial Corporation’s Definitive Proxy Statement on Schedule 14A, filed with the SEC on April 18, 2003) | ||
3 | .1.4 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective February 7, 2005 (incorporated by reference to Appendix A to BFC Financial Corporation’s Definitive Information Statement on Schedule 14C, filed with the SEC on January 18, 2005) | ||
3 | .1.5 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective June 22, 2004, as amended on December 17, 2008 (incorporated by reference to Exhibit 3.1 to BFC Financial Corporation’s Current Report onForm 8-K, filed with the SEC on December 18, 2008) | ||
3 | .1.6 | Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation, effective May 19, 2009 (incorporated by reference to Appendix A to BFC Financial Corporation’s Definitive Proxy Statement on Schedule 14A, filed with the SEC on April 29, 2009) | ||
3 | .1.7 | Form of Amendment to the Amended and Restated Articles of Incorporation of BFC Financial Corporation to become effective as of the effective time of the merger described in this registration statement (included as Annex D to the joint proxy statement/prospectus that forms a part of this registration statement) | ||
3 | .2.1 | By-laws of BFC Financial Corporation, as amended (incorporated by reference to Exhibit 3.3 to BFC Financial Corporation’s Annual Report onForm 10-K for the year ended December 31, 2007, filed with the SEC on March 17, 2008) | ||
3 | .2.2 | Form of By-laws of BFC Financial Corporation, as amended, to become effective as of the effective time of the merger described in this registration statement (included as Annex E to the joint proxy statement/prospectus that forms a part of this registration statement) | ||
5 | .1 | Opinion of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. regarding the legality of the securities being issued | ||
8 | .1 | Opinion of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. relating to tax matters (included in Exhibit 5.1) | ||
23 | .1 | Consent of PricewaterhouseCoopers LLP relating to BFC Financial Corporation’s consolidated financial statements | ||
23 | .2 | Consent of PricewaterhouseCoopers LLP relating to Woodbridge Holdings Corporation’s consolidated financial statements | ||
23 | .3 | Consent of Ernst & Young LLP relating to Bluegreen Corporation’s consolidated financial statements | ||
23 | .4 | Consent of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. (included in Exhibit 5.1) | ||
24 | .1* | Power of Attorney (included on signature page of this registration statement) | ||
99 | .1 | Form of BFC Financial Corporation proxy cards | ||
99 | .2 | Form of Woodbridge Holdings Corporation proxy card | ||
99 | .3 | Unaudited financial statements of Bluegreen Corporation for the three and six months ended June 30, 2008 and 2009 | ||
99 | .4* | Audited financial statements of Bluegreen Corporation for the years ended December 31, 2006, 2007 and 2008 |
* | Previously filed. |