Exhibit 99.1
BankAtlantic Bancorp Reports Financial Results
For the Second Quarter, 2009
For the Second Quarter, 2009
— BankAtlantic’s core(1) and total deposits reached $2.4 billion and $4.1 billion,
respectively, matching record levels —
respectively, matching record levels —
— BankAtlantic’s core operating earnings (2) improved 16% over the prior quarter —
— BankAtlantic’s regulatory capital ratios continue to exceed all regulatory ‘well-capitalized’
thresholds and remain above December 31, 2008 levels —
thresholds and remain above December 31, 2008 levels —
FORT LAUDERDALE, Florida — July 22, 2009 —BankAtlantic Bancorp, Inc. (NYSE: BBX) today reported a net loss from continuing operations of ($38.4) million, or ($3.41) per diluted share for the quarter ended June 30, 2009, compared to a net loss from continuing operations of ($46.6) million, or ($4.15) per diluted share for the quarter ended March 31, 2009, and a net loss from continuing operations of ($19.4) million, or ($1.73) per diluted share for the quarter ended June 30, 2008. BankAtlantic Bancorp’s pre-tax loss from continuing operations was ($38.4) million, ($46.6) million and ($31.5) million for the quarters ended June 30, 2009, March 31, 2009 and June 30, 2008, respectively.
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan commented, “Our results for the second quarter reflect the extraordinarily challenging times, as the U.S. economy and Florida, in particular, continue to experience one of the deepest and longest recessions in history. While the current economic environment presents many challenges which are largely out of our control, we are managing our business and focusing our efforts on those areas over which we have greater control with the goal of countering these recessionary impacts where possible. These efforts include de-leveraging our balance sheet, implementing strategies for diversifying our loan portfolio, continuing to build our low-cost deposit franchise, improving efficiency in our operations, and above all, focusing on building strong customer
(1) | Core deposits include Demand, Now and Savings accounts. | |
(2) | Core operating earnings is defined as pretax earnings before provision for loan losses, tax certificate provisions, debt redemption costs, FDIC special assessment and impairment, restructuring and exit activities. |
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relationships. These are long-term efforts that we believe will position BankAtlantic well in a post-recessionary environment.
“While we are not pleased with the loss being reported, we continue to be pleased with BankAtlantic’s core business results. Highlights for the second quarter of 2009 include:
• | “Core and total deposits have grown to match record highs, while our borrowings are at their lowest levels in over a decade; | ||
• | “Pretax core operating earnings, net loss and net interest margin all improved over the first quarter of 2009; | ||
• | “Both core(3)and total non-interest expenses are at their lowest levels since 2005; | ||
• | “The increases in nonaccrual loans and nonperforming assets slowed during the quarter and no net increase in commercial real estate non-performing loans was experienced during the quarter; | ||
• | “The allowance for loan losses is the highest in the bank’s history; and | ||
• | “Our regulatory capital ratios remain well above all of the regulatory defined ‘well-capitalized’ thresholds, and reflect improvement from year-end 2008 levels. | ||
Capital ratios at June 30, 2009 were: |
— Core capital 7.01% (vs. regulatory well-capitalized level of 5%)
— Tier I risk-based capital 9.93% (vs. regulatory well-capitalized level of 6%)
— Total risk-based capital 11.81% (vs. regulatory well-capitalized level of 10%)
— Tangible common equity/tangible assets 7.09%
“Our near-term strategy remains the same and is straight-forward: we are focused on managing credit, maintaining appropriate capital levels and improving core operating earnings. Our goal is to continue to provide exceptional local service to our customers as we work to reposition the Company for sustainable profitability in the long term. Through it all, BankAtlantic continues to serve Florida’s residents and businesses as we have since 1952,” concluded Alan B. Levan.
(3) | Core expenses exclude tax certificate provisions, debt redemption costs, FDIC special assessment, impairments, restructuring and exit activities. |
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BankAtlantic Performance:
Deposits and Liquidity—BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “BankAtlantic’s deposit base continues to be a stable, growing funding source with core and total deposits matching our prior reported peak of deposits in 2007.
• | “Core and total deposits at June 30, 2009 grew to $2.4 billion and $4.1 billion, respectively, while maintaining the following strong characteristics: |
— | Non-CD balances represented approximately 70% of total deposits; | ||
— | The average cost of core deposits and total deposits for the second quarter of 2009 was 0.36% and 1.13%, respectively; and | ||
— | Brokered deposit balances represented only 4.3% of assets. |
• | “During the second quarter of 2009: |
— | Core deposits (Demand, NOW and Savings accounts) increased $86.9 million. | ||
— | Total deposits grew by $1.7 million, as the core deposit growth was partially offset by decreases in brokered CDs of $45.7 million and decreases in other non-core deposit categories of $39.5 million. |
• | “Year-to-date 2009: |
— | Core deposits increased approximately $274.4 million, representing a 12.7% increase from December 31, 2008. | ||
— | Total deposits increased approximately $128.7 million as the strong growth in core deposits offset net declines in non-core accounts. |
“Further, BankAtlantic reduced its borrowings significantly, resulting in its June 30, 2009 borrowings level of $666.8 million representing a 12 year low. Particularly in the current economic environment, we believe our low-cost deposit base combined with our significantly-reduced balance sheet leverage, reflect the fundamental strength of our franchise.
• | “During the second quarter of 2009, borrowings were reduced by $291.1 million, or 30.4%. | ||
• | “Since June 30, 2008, borrowings have been reduced by $1.15 billion, or 63.3%. | ||
• | “BankAtlantic’s ratio of total borrowings to deposits plus borrowings was 14.1% at June 30, 2009 compared to 19.1% at March 31, 2009 and 31.6% at June 30, 2008. |
Net Income — “BankAtlantic’s pre-tax loss was ($24.2) million for the second quarter of 2009, compared to a pre-tax loss of ($40.6) million for the first quarter of 2009 and a pre-tax loss
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of ($23.5) million for the second quarter of 2008. Pre-tax core operating earnings (as defined above) for the second quarter of 2009 improved 16.4% to $18.9 million compared to $16.2 million in the first quarter of 2009. Loan loss and tax certificate provisions, goodwill impairment, debt redemption costs, impairment, restructuring and exit activity expenses and the FDIC special assessment, which are not included in core operating earnings, were ($43.1) million for the second quarter of 2009, ($56.8) million for the first quarter of 2009, and ($44.7) million for the second quarter of 2008.
Net Interest Margin— “BankAtlantic’s net interest margin has remained relatively stable in spite of the increased pressure of nonperforming assets and reduced earning asset balances. We have proactively deleveraged our balance sheet and reduced assets through repayment of borrowings from scheduled loan and security payments and pay downs, and sales of investment securities.
• | “Net interest income for the second quarter of 2009 was $40.1 million compared to $41.8 million during the first quarter of 2009 and $49.9 million in the second quarter of 2008. | ||
• | “Net interest margin during the second quarter of 2009 was 3.24%, improved from 3.14% during the first quarter of 2009, and compared to 3.58% during the second quarter of 2008. | ||
• | “Improvement in margin from the first quarter of 2009 was primarily due to a decline in average borrowings ($490.5 million), growth in low cost deposits, and run-off of certain higher fixed rate maturing deposits, which partially offset the impact of the decline of average earning assets of $361.9 million during the quarter and a $34.0 million increase in non-performing assets. | ||
• | “The decline in net interest income and margin from the second quarter of 2008 was primarily due to a $639.8 million decline in average earning assets, a $228.3 million increase in non-performing assets, and discontinuation of the FHLB stock dividend. These factors were partially offset by the significant reduction of average borrowings, which declined by $868.5 million, and continued growth in low cost deposits which served to reduce overall funding costs. |
Non-interest income — “This source of revenue continues to be a stable revenue stream for BankAtlantic.
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• | “Total non-interest income was 45.0% of total revenue for the second quarter of 2009 compared to 42.4% for the comparable 2008 period. | ||
• | “Total non-interest income for the second quarter of 2009 was $32.8 million compared to $32.9 million in the first quarter of 2009 and $36.7 million for the comparable 2008 period, reflecting declining deposit fee trends during the past year. | ||
• | “Excluding securities gains of $4.3 million and $2.1 million in the first and second quarters of 2009, respectively, non-interest income improved to $30.7 million in the second quarter of 2009 from $28.5 million during the prior quarter, reflecting a modest increase in deposit fee activity. Excluding securities gains of $2.1 million and $2.0 million in the second quarter of 2009 and second quarter of 2008, respectively, non-interest income was down to $30.7 million during the second quarter of 2009 compared to $34.8 million in the second quarter of 2008. |
Non-interest expense—“Expense reduction initiatives have continued to result in savings. As noted above, BankAtlantic’s core and total non-interest expenses are both at their lowest quarterly levels since 2005.
• | “Core expenses (as defined above) in the second quarter of 2009 were $54.0 million, or a 7.6% improvement over core expenses of $58.4 million during the first quarter of 2009, and a 17.5% improvement over core expenses of $65.5 million during the second quarter of 2008. | ||
• | “Year-to-date, core expenses reflected a 16.3% improvement over comparable 2008 levels. |
“Expenses not included in core expenses consisted of the following:
• | “FDIC special assessment chargesof $2.4 million in the second quarter of 2009 compared to none in the prior 2009 or comparable 2008 quarter. | ||
• | “Impairment, restructuring and exit chargesof $1.8 million in the second quarter of 2009, down from $11.2 million (which included $9.1 million in goodwill impairment) in the prior 2009 quarter and $6.0 million in the second quarter of 2008. The charges in the current quarter primarily related to impairments of property and leaseholds held for sale driven largely by the depressed real estate market, and write-downs of real estate owned. | ||
• | “Tax certificate provision expenseof $1.4 million in the second quarter of 2009 compared to $1.5 million in the prior 2009 quarter and $0.9 million in the second quarter |
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of 2008. The increased provision in 2009 primarily related to certain out of state tax certificates held in distressed real estate markets. | |||
• | “Costs associated with debt redemptionof $1.4 million compared to $0.6 million in the prior 2009 quarter. These costs were associated with the prepayment of certain FHLB borrowings as part of our balance sheet de-leveraging efforts. |
Credit Risk Management:
• | “The provision for loan losses in the second quarter of 2009 was $36.0 million, increasing BankAtlantic’s allowance for loan losses to $156.8 million at June 30, 2009. The provision represented 3.79% of total loans at June 30, 2009, compared to 3.41% at March 31, 2009 and 2.21% at June 30, 2008. | ||
• | “The provision for loan losses in the second quarter of 2009 primarily related to our Residential Real Estate, Commercial Real Estate, and Consumer loan portfolios, as those portfolios continue to experience elevated levels of delinquencies, charge-offs and non-accrual loans, and continue to be adversely affected by declining collateral values and general economic conditions. | ||
• | “Second quarter 2009 net charge-offs were $25.8 million, compared to net charge-offs of $22.5 million in the first quarter of 2009, and net charge-offs of $22.8 million during the second quarter of 2008. |
— | Second quarter 2009 net charge-offs included charge-offs of $10.5 million in the Commercial Real Estate loan portfolio, $9.0 million in the Consumer Loan portfolio, $3.6 million in the Residential Real Estate loan portfolio and $2.2 million in the Small Business loan portfolio. |
• | “Total non-accrual loans were $295.4 million at June 30, 2009. This represented an increase of $24.0 million from the prior quarter, compared to an increase of $63.4 million in the first quarter of 2009 over the fourth quarter of 2008. The increase in non-accrual loans at June 30, 2009 included a net increase of $19.1 million in Residential Real Estate non-accrual loans and $3.8 million in Consumer non-accrual loans, while net Commercial Real Estate non-accrual loans were flat. | ||
• | “Real Estate Owned increased $8.5 million during the second quarter of 2009 to $30.2 million, with transfers primarily from the Commercial Real Estate portfolio. |
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Other credit information for BankAtlantic’s three largest loan portfolios is further detailed below.
Commercial Real Estate Loans — “We continued to experience losses in our $1.2 billion commercial real estate portfolio as the economic environment continued to impact our borrowers.
• | “Net charge-offs increased for the second quarter of 2009 to $10.5 million, compared to net charge-offs in the prior 2009 quarter of $5.3 million. | ||
• | “Delinquencies, excluding non-accrual loans, improved to $22.8 million or 1.90% of total loans at June 30, 2009, compared to $44.8 million or 3.68% of total loans at March 31, 2009. | ||
• | “Total Commercial Real Estate non-accrual loans decreased by $0.5 million during the second quarter to $204.1 million at June 30, 2009, with increases in non-accrual loan balances offset by charge-offs, transfers of two loans totaling $7.6 million into Real Estate Owned, the sale of one $4.7 million loan, and payments from borrowers. |
At June 30, 2009, BankAtlantic’s Commercial Real Estate loan portfolio included the following:
• | “Commercial residential land acquisition, development and construction loans were as follows: |
— | Builder land bank loans:Consisted of 7 loans aggregating $59.4 million, including 6 loans aggregating $58.3 million on non-accrual at June 30, 2009. | ||
— | Land acquisition and development loans:Consisted of 30 loans aggregating $191.9 million, including 9 loans aggregating $61.1 million on non-accrual at June 30, 2009. | ||
— | Land acquisition, development and construction loans:Consisted of 7 loans aggregating $19.2 million, including one $6.8 million loan on non-accrual at June 30, 2009. |
• | “Commercial land loans: Consisted of 30 loans aggregating $111.7 million, including 6 loans aggregating $40.9 million on nonaccrual at June 30, 2009. | ||
• | “All other Commercial real estate loans: Portfolio of $818.5 million, including 12 loans aggregating $37.1 million on nonaccrual at June 30, 2009. |
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• | Residential Loans — “Our Residential loan portfolio was $1.8 billion at June 30, 2009, representing 42.6% of the Bank’s total loans. The purchased residential loan portfolio (representing 96% of the total residential loan portfolio) consists of approximately 5,700 first mortgage loans secured by properties throughout the United States, the weighted average FICO score of borrowers in this portfolio was 741 at the time of origination and the original back end debt ratio was a weighted average of 33.5%. Standard products in this portfolio have never included subprime, negative amortizing, option-arm or ‘pick-a-payment’ loans. | ||
• | “Non-accrual balances increased during the second quarter of 2009 by $19.1 million to $64.7 million at June 30, 2009. | ||
• | “Delinquencies, excluding non-accrual loans, improved slightly to $24.4 million or 1.39% of the portfolio at June 30, 2009, compared to $27.4 million or 1.46% of the portfolio at March 31, 2009. | ||
• | “Net charge-offs in the second quarter of 2009 improved slightly to $3.6 million versus $4.3 million in the first quarter of 2009. | ||
• | “The allowance for Residential loans was increased during the second quarter of 2009 by approximately $10 million reflecting increased non-accrual balances and the decline in certain underlying collateral values. |
We expect that the delinquency levels and loss trends in the Residential portfolio will continue to mirror the broader economy and unemployment trends.
Consumer Loans — “Our Consumer Loan portfolio had an outstanding balance of $708.9 million at June 30, 2009, with home equity loans representing 98.5% of this portfolio. All of our home equity loans were originated by us in our local markets with central underwriting. Approximately 24% of the loans in this portfolio are secured by first mortgages.
• | “Non-accrual balances increased during the second quarter of 2009 by $3.8 million to $11.8 million at June 30, 2009. | ||
• | “Delinquencies, excluding non-accrual loans, improved to $9.9 million or 1.40% of the portfolio at June 30, 2009, compared to $12.4 million or 1.71% of the portfolio at March 31, 2009. | ||
• | “Net charge-offs in the second quarter of 2009 improved slightly to $9.0 million versus $10.2 million in the first quarter of 2009, however we believe this improvement was due |
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to the timing of billing and charge-off cycles during the second quarter and may not be indicative of a positive trend at this time. |
“We continue to work diligently with borrowers experiencing difficulties and regularly evaluate our consumer loan available commitments in an effort to reduce our overall exposure where appropriate. We believe delinquency and charge-off trends in this portfolio will continue to mirror the Florida economy, unemployment trends and any further declines in housing prices.
Capital
“During the second quarter of 2009, management continued to focus on efforts aimed at maintaining appropriate capital levels. Capital ratios at June 30, 2009 remained well above all of the regulatory defined well-capitalized thresholds, and reflect improvement from December 31, 2008 levels. Capital ratios at June 30, 2009 were:
• | Core capital 7.01% (vs. regulatory well capitalized level of 5%) | ||
• | Tier I risk-based capital 9.93% (vs. regulatory well capitalized level of 6%) | ||
• | Total risk-based capital 11.81% (vs. regulatory well capitalized level of 10%) | ||
• | Tangible common equity/tangible assets 7.09% |
Steps taken at BankAtlantic during the second quarter of 2009 which impacted capital levels included:
• | Pre-provision net earnings (net loss from bank operations, excluding provision for loan losses) of $11.8 million; | ||
• | Reduced total and risk-based assets through balance sheet de-leveraging activities (primarily through repayment of borrowings with scheduled loan and security payments and pay downs, and sales of investment securities); | ||
• | Capital contribution of $5.0 million from BankAtlantic Bancorp; and | ||
• | Continued suspension of dividends from BankAtlantic” |
BankAtlantic Bancorp:
Alan B. Levan further commented, “During the second quarter of 2009, BankAtlantic Bancorp (“Bancorp”) contributed $5.0 million in capital to BankAtlantic. While BankAtlantic did not require this capital contribution to maintain its well-capitalized ratio levels, Bancorp continued to demonstrate its intent to support BankAtlantic. Year-to-date, Bancorp has contributed $30 million in capital to BankAtlantic.
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“During the second quarter of 2009, Bancorp recorded an other-than-temporary impairment of $1.4 million on a $1.6 million investment in preferred stock of a bank holding company.
Asset Workout Subsidiary— “As previously discussed, during the first quarter of 2008, Bancorp formed a wholly-owned asset workout subsidiary and purchased certain non-accrual loans from BankAtlantic. These assets are no longer held by BankAtlantic, and any gain or loss associated with these assets have no impact on BankAtlantic’s operations or capital, but will be included in Bancorp’s consolidated results. These assets, as with all other assets and liabilities of Bancorp, should not be combined with those of BankAtlantic when evaluating and comparing metrics for BankAtlantic as the insured financial institution.
“The loans held by the workout subsidiary totaled $67.9 million with specific loan reserves of $15.4 million at June 30, 2009. During the second quarter of 2009, these loans were written-down by $3.9 million and two loans totaling $4.1 million were transferred to Real Estate Owned. The breakdown of the non-accrual loans held by the Company’s asset workout subsidiary at June 30, 2009 was as follows:
• | “Builder land bank loans:Comprised of 3 loans aggregating $17.5 million. | ||
• | “Land acquisition and development loans:Comprised of 4 loans aggregating $16.7 million. | ||
• | “Land acquisition, development and construction loans:Comprised of 8 loans aggregating $24.8 million. | ||
• | “Commercial business loans:Comprised of 3 loans aggregating $5.6 million. |
“While the environment continues to present significant challenges for our customers and our business, we are hopeful that recent positive indications in economic data, although slight and possibly temporary, are initial signs of at least a more stabilized environment and possible improvements to come. While we must prepare for a prolonged downturn, we look forward to a bright future for Florida, our customers and BankAtlantic.” concluded Alan B. Levan.
Additional detailed financial data for BankAtlantic (bank only), the Parent- BankAtlantic Bancorp, and consolidated BankAtlantic Bancorp are available at www.BankAtlanticBancorp.com .
To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials,” “Supplemental Financials” or “Financial Information” navigation links.
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Additionally, BankAtlantic’s financial information is provided quarterly to the OTS through Thrift Financial Reports, available to the public through the OTS and FDIC websites.
Additionally, copies of BankAtlantic Bancorp’s second quarter 2009 financial results press release and financial data are available upon request via fax, email, or postal service mail. To request a copy, contact BankAtlantic Bancorp’s Investor Relations department using the contact information listed below.
BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Thursday, July 23, 2009, at 11:00 a.m. (Eastern Time).
Teleconference Call Information:
To access the teleconference call in the U.S. and Canada, the toll free number to call is 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference conference ID number20264683.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Monday, August 24, 2009. To access the replay option in the U.S. and Canada, the toll free number to call is 1-800-642-1687. International calls for the replay may be placed at 706-645-9291. The replay digital conference ID number for both domestic and international calls is20264683.
Webcast Information:
Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visit www.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Webcast” navigation link, or go directly to http://www.visualwebcaster.com/event.asp?id=60524. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Thursday, August 6, 2009.
About BankAtlantic Bancorp:
BankAtlantic Bancorp (NYSE: BBX) is a bank holding company and the parent company of BankAtlantic.
About BankAtlantic:
BankAtlantic, Florida’s Most Convenient Bank, is one of the largest financial institutions headquartered in Florida. Via its broad network of community branches, online banking division — BankAtlantic.com , and conveniently located ATMs, BankAtlantic provides a full line of personal, small business and commercial banking products and services. BankAtlantic is open 7 days a week with extended weekday hours, Free Online Banking & Bill Pay, a 7-Day Customer Service Center and Change Exchange coin counters.
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For further information, please visit our websites:
www.BankAtlanticBancorp.com
www.BankAtlantic.com
www.BankAtlanticBancorp.com
www.BankAtlantic.com
To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on our website: www.BankAtlanticBancorp.com.
BankAtlantic Bancorp Contact Info:
Leo Hinkley, Investor Relations Officer
Telephone: (954) 940-5300
Email: InvestorRelations@BankAtlanticBancorp.com
Leo Hinkley, Investor Relations Officer
Telephone: (954) 940-5300
Email: InvestorRelations@BankAtlanticBancorp.com
BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Media Relations:
Sharon Lyn, Vice President
Telephone: 954-940-6383, Fax: 954-940-5320
Email: CorpComm@BankAtlanticBancorp.com
Media Relations:
Sharon Lyn, Vice President
Telephone: 954-940-6383, Fax: 954-940-5320
Email: CorpComm@BankAtlanticBancorp.com
Public Relations for BankAtlantic:
Rbb Public Relations
Sandra Fine
Telephone: 305-567-0535, Fax: 305-448-5027
Email: sandra.fine@rbbpr.com
Rbb Public Relations
Sandra Fine
Telephone: 305-567-0535, Fax: 305-448-5027
Email: sandra.fine@rbbpr.com
# # #
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of BankAtlantic Bancorp, Inc. (“the Company”) and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services, including the impact of the changing regulatory environment, a continued or deepening recession and increased unemployment on our business generally, our well capitalized regulatory capital ratios, as well as the ability of our borrowers to service their obligations and
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of our customers to maintain account balances; credit risks and loan losses, and the related sufficiency of the allowance for loan losses, including the impact on the credit quality of our loans (including those held in the asset workout subsidiary of the Company) of a sustained downturn in the economy and in the real estate market and other changes in the real estate markets in our trade area, and where our collateral is located; the quality of our real estate based loans including our residential land acquisition and development loans (including Builder land bank loans, Land acquisition and development loans and Land acquisition, development and construction loans) as well as Commercial land loans, other Commercial real estate loans, and Commercial business loans, and conditions specifically in those market sectors; the risks of additional charge-offs, impairments and required increases in our allowance for loan losses; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on the bank’s net interest margin; adverse conditions in the stock market, the public debt market and other financial and credit markets and the impact of such conditions on our activities, the value of our assets and on the ability of our borrowers to service their debt obligations and maintain account balances; BankAtlantic’s seven-day banking initiatives and other initiatives not resulting in continued growth of core deposits or increasing average balances of new deposit accounts or producing results which do not justify their costs; the success of our expense reduction initiatives and the ability to achieve additional cost savings; and the impact of periodic valuation testing of goodwill, deferred tax assets and other assets. Past performance, actual or estimated new account openings and growth may not be indicative of future results. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2008. The Company cautions that the foregoing factors are not exclusive.
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BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)
Summary of Selected Financial Data (unaudited)
For the Six | ||||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||||
6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 6/30/2009 | 6/30/2008 | ||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||
Net loss from continuing operations | $ | (38,356 | ) | (46,611 | ) | (164,335 | ) | (10,982 | ) | (19,363 | ) | (84,967 | ) | (43,927 | ) | |||||||||||||||
Net loss | $ | (38,356 | ) | (42,410 | ) | (153,770 | ) | (6,063 | ) | (19,363 | ) | (80,766 | ) | (42,806 | ) | |||||||||||||||
Pre-tax core operating earnings | (note 1) | $ | 12,238 | 10,953 | (2,111 | ) | 16,323 | 22,615 | 23,191 | 25,671 | ||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||
Basic | 11,237 | 11,234 | 11,231 | 11,228 | 11,223 | 11,235 | 11,221 | |||||||||||||||||||||||
Diluted | 11,237 | 11,234 | 11,231 | 11,228 | 11,223 | 11,235 | 11,221 | |||||||||||||||||||||||
Key Performance Ratios | ||||||||||||||||||||||||||||||
Diluted loss per share from continuing operations | (note 2) | $ | (3.41 | ) | (4.15 | ) | (14.63 | ) | (0.98 | ) | (1.73 | ) | (7.56 | ) | (3.91 | ) | ||||||||||||||
Diluted loss per share | (note 2) | $ | (3.41 | ) | (3.78 | ) | (13.69 | ) | (0.54 | ) | (1.73 | ) | (7.19 | ) | (3.81 | ) | ||||||||||||||
Return on average tangible assets from continuing operations | (note 3) | % | (2.88 | ) | (3.24 | ) | (10.96 | ) | (0.69 | ) | (1.26 | ) | (3.07 | ) | (1.41 | ) | ||||||||||||||
Return on average tangible equity from continuing operations | (note 3) | % | (80.39 | ) | (81.46 | ) | (192.00 | ) | (12.76 | ) | (21.63 | ) | (81.01 | ) | (23.75 | ) | ||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||
Assets | $ | 5,351 | 5,775 | 6,073 | 6,397 | 6,235 | 5,562 | 6,292 | ||||||||||||||||||||||
Tangible assets | (note 3) | $ | 5,334 | 5,749 | 5,999 | 6,322 | 6,160 | 5,540 | 6,217 | |||||||||||||||||||||
Loans, gross | $ | 4,302 | 4,435 | 4,482 | 4,544 | 4,571 | 4,368 | 4,607 | ||||||||||||||||||||||
Investments | $ | 705 | 947 | 1,054 | 1,347 | 1,138 | 825 | 1,164 | ||||||||||||||||||||||
Deposits and escrows | $ | 4,089 | 3,986 | 3,917 | 3,935 | 3,907 | 4,038 | 3,928 | ||||||||||||||||||||||
Stockholders’ equity | $ | 205 | 250 | 410 | 415 | 435 | 227 | 447 | ||||||||||||||||||||||
Tangible stockholders’ equity | (note 3) | $ | 191 | 229 | 342 | 344 | 358 | 210 | 370 |
Note: | ||
(1) | Pre-tax core operating earnings excludes provision for loan losses, cost associated with debt redemption, provision for tax certificates, FDIC special assessment, impairments, restructuring and exit activities. See reconciliation of pre-tax loss to pre-tax core operating earnings in BankAtlantic Bancorp’s and BankAtlantic’s consolidated statements of operations. | |
(2) | Diluted and basic loss per share are the same for all periods presented. | |
(3) | Average tangible assets is defined as average total assets less average goodwill and core deposit intangibles. Average tangible equity is defined as average total stockholders’ equity less average goodwill, core deposit intangibles and other comprehensive income. |
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
Consolidated Statements of Financial Condition (unaudited)
June 30, | December 31, | |||||||
(in thousands) | 2009 | 2008 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 213,476 | 158,957 | |||||
Securities available for sale (at fair value) | 431,976 | 701,845 | ||||||
Investment securities (approximate fair value: $3,015 and $2,503) | 2,036 | 2,036 | ||||||
Tax certificates, net of allowance of $7,508 and $6,064 | 179,110 | 213,534 | ||||||
Loans receivable, net of allowance for loan losses of $172,220 and $137,257 | 4,036,754 | 4,326,651 | ||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 48,751 | 54,607 | ||||||
Real estate held for development and sale | 18,349 | 18,383 | ||||||
Real estate owned | 34,317 | 19,045 | ||||||
Office properties and equipment, net | 209,064 | 216,978 | ||||||
Goodwill and other intangible assets | 16,461 | 26,244 | ||||||
Other assets | 70,731 | 76,277 | ||||||
Total assets | $ | 5,261,025 | 5,814,557 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | ||||||||
Demand | $ | 802,446 | 741,691 | |||||
Savings | 438,127 | 419,494 | ||||||
NOW | 1,187,742 | 992,762 | ||||||
Money market | 395,903 | 427,762 | ||||||
Certificates of deposit | 1,230,829 | 1,344,659 | ||||||
Total deposits | 4,055,047 | 3,926,368 | ||||||
Advances from FHLB | 597,020 | 967,028 | ||||||
Securities sold under agreements to repurchase | 25,821 | 46,084 | ||||||
Federal funds purchased and other short term borrowings | 5,553 | 238,339 | ||||||
Subordinated debentures and bonds payable | 22,781 | 22,864 | ||||||
Junior subordinated debentures | 301,353 | 294,195 | ||||||
Other liabilities | 86,883 | 75,711 | ||||||
Total liabilities | 5,094,458 | 5,570,589 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 113 | 113 | ||||||
Additional paid-in capital | 220,375 | 218,974 | ||||||
Retained (deficit) earnings | (48,381 | ) | 32,667 | |||||
Total stockholders’ equity before accumulated other comprehensive loss | 172,107 | 251,754 | ||||||
Accumulated other comprehensive loss | (5,540 | ) | (7,786 | ) | ||||
Total stockholders’ equity | 166,567 | 243,968 | ||||||
Total liabilities and stockholders’ equity | $ | 5,261,025 | 5,814,557 | |||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 6/30/2009 | 6/30/2008 | |||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||
Interest and fees on loans | $ | 47,747 | 49,678 | 56,660 | 60,843 | 61,583 | 97,425 | 129,719 | ||||||||||||||||||||
Interest on securities available for sale | 6,328 | 8,559 | 9,434 | 9,966 | 10,553 | 14,887 | 21,043 | |||||||||||||||||||||
Interest on tax certificates | 3,061 | 4,193 | 4,769 | 8,893 | 4,926 | 7,254 | 8,491 | |||||||||||||||||||||
Interest and dividends on investments | 44 | 179 | 250 | 1,482 | 1,425 | 223 | 2,966 | |||||||||||||||||||||
Total interest income | 57,180 | 62,609 | 71,113 | 81,184 | 78,487 | 119,789 | 162,219 | |||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Interest on deposits | 11,527 | 12,987 | 15,610 | 15,552 | 14,508 | 24,514 | 33,101 | |||||||||||||||||||||
Interest on advances from FHLB | 5,082 | 7,164 | 10,162 | 13,401 | 12,433 | 12,246 | 27,379 | |||||||||||||||||||||
Interest on short-term borrowed funds | 19 | 172 | 151 | 330 | 725 | 191 | 2,004 | |||||||||||||||||||||
Interest on long-term debt | 4,280 | 4,538 | 6,008 | 5,484 | 5,220 | 8,818 | 11,503 | |||||||||||||||||||||
Total interest expense | 20,908 | 24,861 | 31,931 | 34,767 | 32,886 | 45,769 | 73,987 | |||||||||||||||||||||
NET INTEREST INCOME | 36,272 | 37,748 | 39,182 | 46,417 | 45,601 | 74,020 | 88,232 | |||||||||||||||||||||
Provision for loan losses | 43,494 | 44,277 | 38,452 | 31,214 | 47,247 | 87,771 | 90,135 | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | (7,222 | ) | (6,529 | ) | 730 | 15,203 | (1,646 | ) | (13,751 | ) | (1,903 | ) | ||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||
Service charges on deposits | 19,347 | 18,685 | 21,501 | 23,924 | 24,466 | 38,032 | 48,480 | |||||||||||||||||||||
Other service charges and fees | 8,059 | 7,025 | 7,096 | 7,309 | 7,121 | 15,084 | 14,554 | |||||||||||||||||||||
Securities activities, net | 693 | 4,440 | (3,320 | ) | 1,132 | 8,965 | 5,133 | 4,227 | ||||||||||||||||||||
Other | 3,423 | 2,959 | 2,576 | 2,831 | 3,324 | 6,382 | 7,254 | |||||||||||||||||||||
Total non-interest income | 31,522 | 33,109 | 27,853 | 35,196 | 43,876 | 64,631 | 74,515 | |||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Employee compensation and benefits | 25,935 | 28,806 | 28,882 | 31,679 | 33,181 | 54,741 | 68,336 | |||||||||||||||||||||
Occupancy and equipment | 14,842 | 14,911 | 16,228 | 15,996 | 16,172 | 29,753 | 32,558 | |||||||||||||||||||||
Advertising and business promotion | 1,979 | 2,832 | 4,348 | 3,430 | 3,662 | 4,811 | 8,557 | |||||||||||||||||||||
Professional fees | 2,695 | 3,326 | 4,622 | 3,160 | 2,219 | 6,021 | 4,979 | |||||||||||||||||||||
Check losses | 991 | 844 | 1,854 | 2,094 | 2,101 | 1,835 | 4,819 | |||||||||||||||||||||
Supplies and postage | 999 | 1,004 | 1,294 | 1,080 | 1,282 | 2,003 | 2,288 | |||||||||||||||||||||
Telecommunication | 586 | 698 | 866 | 753 | 1,331 | 1,284 | 2,833 | |||||||||||||||||||||
Cost associated with debt redemption | 1,441 | 591 | 1,236 | — | 1 | 2,032 | 2 | |||||||||||||||||||||
Provision for tax certificates | 1,414 | 1,486 | 3,641 | 2,838 | 924 | 2,900 | 807 | |||||||||||||||||||||
Impairment of goodwill | — | 9,124 | 48,284 | — | — | 9,124 | — | |||||||||||||||||||||
Impairment, restructuring and exit activities | 1,817 | 2,086 | 3,620 | 522 | 5,952 | 3,903 | 5,887 | |||||||||||||||||||||
FDIC special assessment | 2,428 | — | — | — | — | 2,428 | — | |||||||||||||||||||||
Other | 7,529 | 7,483 | 11,052 | 7,098 | 6,914 | 15,012 | 12,706 | |||||||||||||||||||||
Total non-interest expense | 62,656 | 73,191 | 125,927 | 68,650 | 73,739 | 135,847 | 143,772 | |||||||||||||||||||||
Loss from continuing operations before income taxes | (38,356 | ) | (46,611 | ) | (97,344 | ) | (18,251 | ) | (31,509 | ) | (84,967 | ) | (71,160 | ) | ||||||||||||||
Provision (benefit) for income taxes | — | — | 66,991 | (7,269 | ) | (12,146 | ) | — | (27,233 | ) | ||||||||||||||||||
Loss from continuing operations | (38,356 | ) | (46,611 | ) | (164,335 | ) | (10,982 | ) | (19,363 | ) | (84,967 | ) | (43,927 | ) | ||||||||||||||
Discontinued operations | — | 4,201 | 10,565 | 4,919 | — | 4,201 | 1,121 | |||||||||||||||||||||
Net loss | $ | (38,356 | ) | (42,410 | ) | (153,770 | ) | (6,063 | ) | (19,363 | ) | (80,766 | ) | (42,806 | ) | |||||||||||||
Reconciliation of pre-tax loss to pre-tax core operating earnings | ||||||||||||||||||||||||||||
Loss from continuing operations before income taxes | $ | (38,356 | ) | (46,611 | ) | (97,344 | ) | (18,251 | ) | (31,509 | ) | (84,967 | ) | (71,160 | ) | |||||||||||||
Costs associated with debt redemption | 1,441 | 591 | 1,236 | — | 1 | 2,032 | 2 | |||||||||||||||||||||
Provision for tax certificates | 1,414 | 1,486 | 3,641 | 2,838 | 924 | 2,900 | 807 | |||||||||||||||||||||
Impairment of goodwill | — | 9,124 | 48,284 | — | — | 9,124 | — | |||||||||||||||||||||
Impairment, restructuring and exit activities | 1,817 | 2,086 | 3,620 | 522 | 5,952 | 3,903 | 5,887 | |||||||||||||||||||||
FDIC special assessment | 2,428 | — | — | — | — | 2,428 | — | |||||||||||||||||||||
Provision for loan losses | 43,494 | 44,277 | 38,452 | 31,214 | 47,247 | 87,771 | 90,135 | |||||||||||||||||||||
Pre-tax core operating earnings | (note 1) | $ | 12,238 | 10,953 | (2,111 | ) | 16,323 | 22,615 | 23,191 | 25,671 | ||||||||||||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
Consolidated Average Balance Sheet (unaudited)
For the Three Months Ended | ||||||||||||||||||||
(in thousands except percentages and per share data) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | |||||||||||||||
Loans: | ||||||||||||||||||||
Residential real estate | $ | 1,821,553 | 1,916,589 | 1,956,429 | 2,010,749 | 2,086,519 | ||||||||||||||
Commercial real estate | 1,291,536 | 1,305,809 | 1,309,670 | 1,320,678 | 1,292,627 | |||||||||||||||
Consumer | 730,988 | 744,371 | 754,709 | 755,050 | 743,123 | |||||||||||||||
Commercial business | 141,254 | 146,703 | 138,598 | 135,909 | 129,332 | |||||||||||||||
Small business | 316,287 | 321,991 | 322,417 | 322,048 | 319,096 | |||||||||||||||
Total Loans | 4,301,618 | 4,435,463 | 4,481,823 | 4,544,434 | 4,570,697 | |||||||||||||||
Investments | 704,874 | 947,219 | 1,054,126 | 1,346,852 | 1,137,831 | |||||||||||||||
Total interest earning assets | 5,006,492 | 5,382,682 | 5,535,949 | 5,891,286 | 5,708,528 | |||||||||||||||
Goodwill and core deposit intangibles | 16,618 | 25,971 | 74,166 | 75,029 | 75,401 | |||||||||||||||
Other non-interest earning assets | 327,876 | 365,847 | 462,813 | 430,683 | 450,999 | |||||||||||||||
Total assets | $ | 5,350,986 | 5,774,500 | 6,072,928 | 6,396,998 | 6,234,928 | ||||||||||||||
Tangible assets | (note 3) | $ | 5,334,368 | 5,748,529 | 5,998,762 | 6,321,969 | 6,159,527 | |||||||||||||
Deposits: | ||||||||||||||||||||
Demand deposits | $ | 810,006 | 775,982 | 770,152 | 812,505 | 878,864 | ||||||||||||||
Savings | 451,122 | 441,278 | 425,256 | 471,270 | 552,094 | |||||||||||||||
NOW | 1,159,531 | 1,047,116 | 958,389 | 955,392 | 941,964 | |||||||||||||||
Money market | 412,065 | 421,883 | 461,253 | 557,343 | 617,013 | |||||||||||||||
Certificates of deposit | 1,256,299 | 1,300,056 | 1,301,953 | 1,138,615 | 917,133 | |||||||||||||||
Total deposits | 4,089,023 | 3,986,315 | 3,917,003 | 3,935,125 | 3,907,068 | |||||||||||||||
Short-term borrowed funds | 45,433 | 253,317 | 110,080 | 79,503 | 148,407 | |||||||||||||||
FHLB advances | 625,254 | 903,077 | 1,258,944 | 1,598,111 | 1,389,835 | |||||||||||||||
Long-term debt | 320,945 | 317,184 | 319,400 | 320,283 | 320,469 | |||||||||||||||
Total borrowings | 991,632 | 1,473,578 | 1,688,424 | 1,997,897 | 1,858,711 | |||||||||||||||
Other liabilities | 65,599 | 65,092 | 57,852 | 48,981 | 34,023 | |||||||||||||||
Total liabilities | 5,146,254 | 5,524,985 | 5,663,279 | 5,982,003 | 5,799,802 | |||||||||||||||
Stockholders’ equity | 204,732 | 249,515 | 409,649 | 414,995 | 435,126 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,350,986 | 5,774,500 | 6,072,928 | 6,396,998 | 6,234,928 | ||||||||||||||
Other comprehensive (loss) income in stockholders’ equity | (2,729 | ) | (5,347 | ) | (6,874 | ) | (4,184 | ) | 1,679 | |||||||||||
Tangible stockholders’ equity | (note 3) | $ | 190,843 | 228,891 | 342,357 | 344,150 | 358,046 | |||||||||||||
Net Interest Margin | 2.89 | % | 2.78 | % | 2.85 | % | 3.16 | % | 3.18 | % | ||||||||||
Period End | ||||||||||||||||||||
Total loans, net | $ | 4,036,754 | 4,212,536 | 4,326,651 | 4,405,098 | 4,442,529 | ||||||||||||||
Total assets | 5,261,025 | 5,570,760 | 5,814,557 | 6,227,884 | 6,514,975 | |||||||||||||||
Total stockholders’ equity | 166,567 | 207,015 | 243,968 | 400,233 | 408,206 | |||||||||||||||
Class A common shares outstanding | 10,264,106 | 10,259,344 | 10,258,057 | 10,254,570 | 10,251,382 | |||||||||||||||
Class B common shares outstanding | 975,225 | 975,225 | 975,225 | 975,225 | 975,225 | |||||||||||||||
Book value per share | 14.82 | 18.43 | 21.72 | 35.63 | 36.36 | |||||||||||||||
Tangible book value per share | 13.85 | 17.18 | 20.08 | 29.47 | 30.02 | |||||||||||||||
High stock price for the quarter | 4.75 | 5.67 | 11.82 | 15.00 | 20.75 | |||||||||||||||
Low stock price for the quarter | 1.99 | 0.66 | 2.25 | 4.05 | 7.80 | |||||||||||||||
Closing stock price | 3.86 | 2.01 | 5.80 | 8.20 | 8.80 |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 6/30/2009 | 6/30/2008 | |||||||||||||||||||||
Net interest income | $ | 40,078 | 41,769 | 44,525 | 51,195 | 49,923 | 81,847 | 97,928 | ||||||||||||||||||||
Provision for loan losses | 35,955 | 43,520 | 31,770 | 22,924 | 37,801 | 79,475 | 80,689 | |||||||||||||||||||||
Net interest income after provision for loan losses | 4,123 | (1,751 | ) | 12,755 | 28,271 | 12,122 | 2,372 | 17,239 | ||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 19,347 | 18,685 | 21,501 | 23,924 | 24,466 | 38,032 | 48,480 | |||||||||||||||||||||
Other service charges and fees | 8,059 | 7,025 | 7,096 | 7,309 | 7,121 | 15,084 | 14,554 | |||||||||||||||||||||
Securities activities, net | 2,067 | 4,320 | 93 | 1 | 1,960 | 6,387 | 2,301 | |||||||||||||||||||||
Other non-interest income | 3,303 | 2,835 | 2,419 | 2,684 | 3,181 | 6,138 | 6,946 | |||||||||||||||||||||
Total non-interest income | 32,776 | 32,865 | 31,109 | 33,918 | 36,728 | 65,641 | 72,281 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 24,985 | 28,078 | 29,137 | 30,353 | 32,118 | 53,063 | 66,361 | |||||||||||||||||||||
Occupancy and equipment | 14,842 | 14,910 | 16,227 | 15,993 | 16,171 | 29,752 | 32,554 | |||||||||||||||||||||
Advertising and business promotion | 1,846 | 2,781 | 4,243 | 3,388 | 3,564 | 4,627 | 8,425 | |||||||||||||||||||||
Professional fees | 2,336 | 2,944 | 4,019 | 2,696 | 2,004 | 5,280 | 4,264 | |||||||||||||||||||||
Check losses | 991 | 844 | 1,854 | 2,094 | 2,101 | 1,835 | 4,819 | |||||||||||||||||||||
Supplies and postage | 991 | 1,000 | 1,220 | 1,076 | 1,281 | 1,991 | 2,284 | |||||||||||||||||||||
Telecommunication | 580 | 694 | 860 | 748 | 1,326 | 1,274 | 2,822 | |||||||||||||||||||||
Cost associated with debt redemption | 1,441 | 591 | 1,236 | — | 1 | 2,032 | 2 | |||||||||||||||||||||
Provision for tax certificates | 1,414 | 1,486 | 3,641 | 2,838 | 924 | 2,900 | 807 | |||||||||||||||||||||
Impairment of goodwill | — | 9,124 | 48,284 | — | — | 9,124 | — | |||||||||||||||||||||
Impairment, restructuring and exit activities | 1,817 | 2,086 | 3,620 | 522 | 5,952 | 3,903 | 5,887 | |||||||||||||||||||||
FDIC special assessment | 2,428 | — | — | — | — | 2,428 | — | |||||||||||||||||||||
Other | 7,406 | 7,165 | 8,513 | 7,098 | 6,895 | 14,571 | 12,738 | |||||||||||||||||||||
Total non-interest expense | 61,077 | 71,703 | 122,854 | 66,806 | 72,337 | 132,780 | 140,963 | |||||||||||||||||||||
Loss from bank operations business segment before income taxes | (24,178 | ) | (40,589 | ) | (78,990 | ) | (4,617 | ) | (23,487 | ) | (64,767 | ) | (51,443 | ) | ||||||||||||||
Provision (benefit) for income taxes | — | — | 54,022 | (2,525 | ) | (9,428 | ) | — | (20,403 | ) | ||||||||||||||||||
Net loss from bank operations business segment | $ | (24,178 | ) | (40,589 | ) | (133,012 | ) | (2,092 | ) | (14,059 | ) | (64,767 | ) | (31,040 | ) | |||||||||||||
Reconciliation of pre-tax loss to pre-tax core operating earnings | ||||||||||||||||||||||||||||
Loss from bank operations business segment before income taxes | (24,178 | ) | (40,589 | ) | (78,990 | ) | (4,617 | ) | (23,487 | ) | (64,767 | ) | (51,443 | ) | ||||||||||||||
Costs associated with debt redemption | 1,441 | 591 | 1,236 | — | 1 | 2,032 | 2 | |||||||||||||||||||||
Provision for tax certificates | 1,414 | 1,486 | 3,641 | 2,838 | 924 | 2,900 | 807 | |||||||||||||||||||||
Impairment of goodwill | — | 9,124 | 48,284 | — | — | 9,124 | — | |||||||||||||||||||||
Impairment, restructuring and exit activities | 1,817 | 2,086 | 3,620 | 522 | 5,952 | 3,903 | 5,887 | |||||||||||||||||||||
FDIC special assessment | 2,428 | — | — | — | — | 2,428 | — | |||||||||||||||||||||
Provision for loan losses | 35,955 | 43,520 | 31,770 | 22,924 | 37,801 | 79,475 | 80,689 | |||||||||||||||||||||
Pre-tax core operating earnings | 18,877 | 16,218 | 9,561 | 21,667 | 21,191 | 35,095 | 35,942 | |||||||||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
For the | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands except percentages) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 6/30/2009 | 6/30/2008 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Average interest earning assets | $ | 4,929,849 | 5,291,754 | 5,436,572 | 5,770,265 | 5,569,690 | 5,109,802 | 5,619,575 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 3,992,654 | 4,414,439 | 4,571,084 | 4,839,138 | 4,610,344 | 4,202,381 | 4,661,628 | ||||||||||||||||||||
Average tangible assets | $ | 5,254,284 | 5,648,268 | 5,881,742 | 6,187,300 | 6,002,728 | 5,450,188 | 6,044,342 | ||||||||||||||||||||
Average tangible equity | $ | 391,404 | 401,665 | 492,366 | 486,523 | 466,141 | 396,505 | 467,044 | ||||||||||||||||||||
Period end borrowings to deposits and borrowings | % | 14.12 | 19.12 | 24.89 | 29.53 | 31.61 | 14.12 | 31.61 | ||||||||||||||||||||
Yield on interest earning assets | % | 4.62 | 4.72 | 5.22 | 5.61 | 5.61 | 4.67 | 5.75 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 1.70 | 1.90 | 2.30 | 2.45 | 2.46 | 1.80 | 2.74 | ||||||||||||||||||||
Interest spread | % | 2.92 | 2.82 | 2.92 | 3.16 | 3.15 | 2.87 | 3.01 | ||||||||||||||||||||
Net interest margin | % | 3.24 | 3.14 | 3.29 | 3.56 | 3.58 | 3.19 | 3.48 | ||||||||||||||||||||
Performance: | ||||||||||||||||||||||||||||
Efficiency ratio | % | 83.83 | 96.07 | 162.43 | 78.49 | 83.48 | 90.03 | 82.82 | ||||||||||||||||||||
Pre-tax core operating earnings | (note 1) | $ | 18,877 | 16,218 | 9,561 | 21,667 | 21,191 | 35,095 | 35,942 | |||||||||||||||||||
Core operating efficiency ratio | (note 1) | % | 74.09 | 78.27 | 87.36 | 74.54 | 75.54 | 76.20 | 78.88 | |||||||||||||||||||
Return on average tangible assets | % | (1.84 | ) | (2.87 | ) | (9.05 | ) | (0.14 | ) | (0.94 | ) | (2.38 | ) | (1.03 | ) | |||||||||||||
Return on average tangible equity | % | (24.71 | ) | (40.42 | ) | (108.06 | ) | (1.72 | ) | (12.06 | ) | (32.67 | ) | (13.29 | ) | |||||||||||||
Tangible capital to tangible assets | % | 7.09 | 7.10 | 6.83 | 7.89 | 7.54 | ||||||||||||||||||||||
Earning assets repricing at period end: | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 51 | 50 | 49 | 53 | 52 | ||||||||||||||||||||||
Percent of earning assets that have variable rates | % | 49 | 50 | 51 | 47 | 48 | ||||||||||||||||||||||
One year Gap | % | 2 | (3 | ) | 3 | (2 | ) | 1 | ||||||||||||||||||||
Regulatory capital ratios at period end | ||||||||||||||||||||||||||||
Total risk-based capital | % | 11.81 | 11.86 | 11.63 | 11.75 | 11.77 | ||||||||||||||||||||||
Tier I risk-based capital | % | 9.93 | 10.01 | 9.80 | 9.95 | 9.99 | ||||||||||||||||||||||
Core capital | % | 7.01 | 6.97 | 6.80 | 6.89 | 6.82 |
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(in thousands) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 3,984,305 | 4,147,713 | 4,256,741 | 4,328,467 | 4,357,541 | ||||||||||||||
Investment securities | 227,861 | 221,392 | 268,141 | 371,181 | 501,741 | |||||||||||||||
Available for sale securities | 431,762 | 518,871 | 700,250 | 731,279 | 755,651 | |||||||||||||||
Goodwill | 13,081 | 13,081 | 22,205 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 3,380 | 3,703 | 4,039 | 4,375 | 4,711 | |||||||||||||||
Other assets | 529,322 | 583,843 | 462,314 | 607,188 | 679,015 | |||||||||||||||
Total assets | $ | 5,189,711 | 5,488,603 | 5,713,690 | 6,112,979 | 6,369,148 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 802,446 | 798,687 | 741,691 | 767,179 | 891,142 | ||||||||||||||
Savings | 438,127 | 457,991 | 419,494 | 432,246 | 526,303 | |||||||||||||||
NOW | 1,187,742 | 1,084,744 | 992,762 | 938,366 | 939,714 | |||||||||||||||
Money market | 395,903 | 413,777 | 427,762 | 494,505 | 621,899 | |||||||||||||||
Certificates of deposit | 1,230,829 | 1,298,114 | 1,344,659 | 1,235,936 | 955,921 | |||||||||||||||
Total deposits | 4,055,047 | 4,053,313 | 3,926,368 | 3,868,232 | 3,934,979 | |||||||||||||||
Advances from Federal Home Loan Bank | 597,020 | 817,024 | 967,028 | 1,468,032 | 1,657,036 | |||||||||||||||
Short term borrowings | 47,039 | 118,077 | 311,074 | 127,041 | 135,200 | |||||||||||||||
Long term debt | 22,781 | 22,822 | 22,864 | 26,098 | 26,287 | |||||||||||||||
Other liabilities | 84,454 | 72,279 | 71,643 | 72,552 | 65,655 | |||||||||||||||
Total liabilities | 4,806,341 | 5,083,515 | 5,298,977 | 5,561,955 | 5,819,157 | |||||||||||||||
Stockholder’s equity | 383,370 | 405,088 | 414,713 | 551,024 | 549,991 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,189,711 | 5,488,603 | 5,713,690 | 6,112,979 | 6,369,148 | ||||||||||||||
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
June 30, 2009 | June 30, 2008 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
( in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,821,553 | 23,351 | 5.13 | % | $ | 2,086,519 | 28,469 | 5.46 | % | ||||||||||||||
Commercial real estate | 1,218,371 | 12,095 | 3.97 | 1,194,902 | 16,979 | 5.68 | ||||||||||||||||||
Consumer | 730,989 | 5,291 | 2.90 | 743,123 | 8,273 | 4.45 | ||||||||||||||||||
Commercial business | 139,718 | 1,865 | 5.34 | 127,229 | 2,224 | 6.99 | ||||||||||||||||||
Small business | 316,287 | 4,983 | 6.30 | 319,095 | 5,521 | 6.92 | ||||||||||||||||||
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 | % | ||||||||||||||||||||
Bank Operations
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Six Months Ended | ||||||||||||||||||||||||
June 30, 2009 | June 30, 2008 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
( in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,868,808 | 48,415 | 5.18 | % | $ | 2,124,470 | 58,121 | 5.47 | % | ||||||||||||||
Commercial real estate | 1,223,010 | 24,236 | 3.96 | 1,249,615 | 36,522 | 5.85 | ||||||||||||||||||
Consumer | 737,643 | 10,702 | 2.90 | 732,725 | 18,825 | 5.14 | ||||||||||||||||||
Commercial business | 142,428 | 3,822 | 5.37 | 129,659 | 4,772 | 7.36 | ||||||||||||||||||
Small business | 319,123 | 10,016 | 6.28 | 317,838 | 11,362 | 7.15 | ||||||||||||||||||
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 | % | ||||||||||||||||||||
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 6/30/2009 | 6/30/2008 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 146,639 | 125,572 | 106,435 | 98,424 | 83,396 | 125,572 | 94,020 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (3,923 | ) | (4,588 | ) | (2,088 | ) | (1,077 | ) | (1,027 | ) | (8,511 | ) | (1,651 | ) | ||||||||||||||
Commercial real estate | (10,530 | ) | (5,565 | ) | — | (4,965 | ) | (14,501 | ) | (16,095 | ) | (55,092 | ) | |||||||||||||||
Commercial business | (516 | ) | — | — | — | — | (516 | ) | — | |||||||||||||||||||
Consumer | (9,118 | ) | (10,321 | ) | (9,197 | ) | (7,684 | ) | (7,225 | ) | (19,439 | ) | (12,061 | ) | ||||||||||||||
Small business | (2,347 | ) | (2,771 | ) | (1,755 | ) | (1,471 | ) | (464 | ) | (5,118 | ) | (1,660 | ) | ||||||||||||||
Total charge-offs | (26,434 | ) | (23,245 | ) | (13,040 | ) | (15,197 | ) | (23,217 | ) | (49,679 | ) | (70,464 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | 360 | 323 | 130 | 75 | 192 | 683 | 192 | |||||||||||||||||||||
Commercial real estate | — | 278 | — | — | — | 278 | — | |||||||||||||||||||||
Commercial business | 5 | 1 | 3 | 9 | 3 | 6 | 29 | |||||||||||||||||||||
Consumer | 130 | 95 | 163 | 63 | 130 | 225 | 218 | |||||||||||||||||||||
Small business | 166 | 95 | 111 | 137 | 119 | 261 | 180 | |||||||||||||||||||||
Total recoveries | 661 | 792 | 407 | 284 | 444 | 1,453 | 619 | |||||||||||||||||||||
Net charge-offs | (25,773 | ) | (22,453 | ) | (12,633 | ) | (14,913 | ) | (22,773 | ) | (48,226 | ) | (69,845 | ) | ||||||||||||||
Transfer specific reserves to Parent | — | — | — | — | — | — | (6,440 | ) | ||||||||||||||||||||
Provision for loan losses | 35,955 | 43,520 | 31,770 | 22,924 | 37,801 | 79,475 | 80,689 | |||||||||||||||||||||
Ending balance | $ | 156,821 | 146,639 | 125,572 | 106,435 | 98,424 | 156,821 | 98,424 | ||||||||||||||||||||
As of | ||||||||||||||||||||
6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | ||||||||||||||||||||
Commercial real estate | $ | 204,104 | 204,560 | 161,947 | 56,419 | 54,033 | ||||||||||||||
Consumer | 11,821 | 7,984 | 6,763 | 5,867 | 4,495 | |||||||||||||||
Small business | 8,916 | 7,383 | 4,644 | 3,911 | 1,165 | |||||||||||||||
Residential real estate | 64,720 | 45,630 | 34,734 | 23,545 | 18,208 | |||||||||||||||
Commercial business | 5,887 | 5,887 | — | — | — | |||||||||||||||
Total Nonaccrual loans | 295,448 | 271,444 | 208,088 | 89,742 | 77,901 | |||||||||||||||
Nonaccrual tax certificates | 3,091 | 1,298 | 1,441 | 2,317 | 2,309 | |||||||||||||||
Real estate owned | 30,213 | 21,763 | 19,045 | 20,054 | 20,298 | |||||||||||||||
Other repossessed assets | 23 | — | — | — | — | |||||||||||||||
Total nonperforming assets | 328,775 | 294,505 | 228,574 | 112,113 | 100,508 | |||||||||||||||
Allowance for loan losses to total loans | % | 3.79 | 3.41 | 2.87 | 2.40 | 2.21 | ||||||||||||||
Allowance to nonaccrual loans | % | 53.08 | 54.02 | 60.35 | 118.60 | 126.34 | ||||||||||||||
Provision to average loans | % | 3.40 | 4.00 | 2.89 | 2.06 | 3.38 | ||||||||||||||
Annualized net charge-offs to average loans | % | 2.44 | 2.06 | 1.15 | 1.34 | 2.04 | ||||||||||||||
Nonperforming loans to total loans | % | 7.13 | 6.32 | 4.75 | 2.02 | 1.75 | ||||||||||||||
Nonperforming assets to total loans and other assets | % | 7.54 | 6.55 | 4.95 | 2.36 | 2.05 |
Bank Operations Business Segment
Delinquencies, Excluding Non-Accrual Loans, at Period-End (BankAtlantic):
Delinquencies, Excluding Non-Accrual Loans, at Period-End (BankAtlantic):
6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | ||||||||||||||||
Commercial real estate | % | 0.72 | * | 2.39 | * | 1.34 | * | 0.41 | * | 0.42 | ||||||||||
Consumer | % | 1.40 | 1.71 | 1.60 | 1.17 | 1.54 | ||||||||||||||
Small business | % | 1.12 | 2.11 | 1.31 | 0.95 | 0.93 | ||||||||||||||
Residential real estate | % | 1.39 | ** | 1.46 | ** | 1.04 | 0.79 | 0.47 | ||||||||||||
Commercial business | % | — | 0.13 | — | — | — | ||||||||||||||
Total BankAtlantic | % | 1.13 | * | 1.77 | * | 1.20 | * | 0.73 | * | 0.65 | ||||||||||
* | Excludes $14.3 million, $15.7 million, $58.5 million and $26 million of Commercial Real Estate loans at June 30, 2009, March 31, 2009, December 31, 2008 and September 30, 2008, respectively, which had matured and had been approved for renewal or forbearance but were not fully documented at period end. Including these loans, Commercial Real Estate delinquencies were 1.90%, 3.68%, 6.12% and 2.52% and total BankAtlantic delinquencies would have been 1.50%, 2.14%, 2.54% and 1.31% at June 30, 2009, March 31, 2009, December 31, 2008 and September 30, 2008, respectively. | |
** | Includes $1.7 billion and $1.8 billion of purchased residential loans with delinquencies excluding non-accrual loans of 1.38% as of June 30, 2009 and March 31, 2009, respectively. |
Bank Operations Business Segment
First Quarter Loan Provision & Allowance for Loan Losses:
First Quarter Loan Provision & Allowance for Loan Losses:
Allowance | % of Reserves | |||||||||||
2Q 2009 | for Loan | to Total | ||||||||||
($ in thousands) | Loan Provision | Losses | Loans | |||||||||
Commercial real estate | $ | 10,530 | 79,622 | 6.63 | % | |||||||
Consumer | 8,988 | 42,382 | 5.98 | |||||||||
Small business | 1,953 | 9,229 | 2.93 | |||||||||
Residential real estate | 13,973 | 22,414 | 1.28 | |||||||||
Commercial business | 511 | 3,174 | 2.24 | |||||||||
Total BankAtlantic | $ | 35,955 | 156,821 | 3.79 | % | |||||||
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
Condensed Statements of Operations — Unaudited
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 6/30/2009 | 6/30/2008 | |||||||||||||||||||||
Net interest expense | $ | (3,807 | ) | (4,021 | ) | (5,343 | ) | (4,778 | ) | (4,324 | ) | (7,828 | ) | (9,698 | ) | |||||||||||||
Provision for loan losses | 7,539 | 757 | 6,682 | 8,290 | 9,446 | 8,296 | 9,446 | |||||||||||||||||||||
Net interest income after provision for loan losses | (11,346 | ) | (4,778 | ) | (12,025 | ) | (13,068 | ) | (13,770 | ) | (16,124 | ) | (19,144 | ) | ||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 115 | 118 | 155 | 143 | 140 | 233 | 302 | |||||||||||||||||||||
Securities activities, net | (1,375 | ) | 120 | (3,413 | ) | 1,131 | 7,005 | (1,255 | ) | 1,926 | ||||||||||||||||||
Other | 287 | 222 | 287 | 202 | 269 | 509 | 540 | |||||||||||||||||||||
Non-interest income | (973 | ) | 460 | (2,971 | ) | 1,476 | 7,414 | (513 | ) | 2,768 | ||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 950 | 728 | (255 | ) | 1,326 | 1,063 | 1,678 | 1,975 | ||||||||||||||||||||
Advertising and business promotion | 134 | 51 | 105 | 42 | 98 | 185 | 132 | |||||||||||||||||||||
Professional fees | 359 | 382 | 603 | 464 | 215 | 741 | 715 | |||||||||||||||||||||
Other | 416 | 543 | 2,905 | 210 | 290 | 959 | 519 | |||||||||||||||||||||
Non-interest expense | 1,859 | 1,704 | 3,358 | 2,042 | 1,666 | 3,563 | 3,341 | |||||||||||||||||||||
Loss from parent company activities before income taxes | (14,178 | ) | (6,022 | ) | (18,354 | ) | (13,634 | ) | (8,022 | ) | (20,200 | ) | (19,717 | ) | ||||||||||||||
Provision (benefit) for income taxes | — | — | 12,969 | (4,744 | ) | (2,718 | ) | — | (6,830 | ) | ||||||||||||||||||
Net loss from parent company business segment | $ | (14,178 | ) | (6,022 | ) | (31,323 | ) | (8,890 | ) | (5,304 | ) | (20,200 | ) | (12,887 | ) | |||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 16,122 | 19,860 | 37,116 | 41,031 | 17,261 | ||||||||||||||
Securities | 2,250 | 3,289 | 3,631 | 5,727 | 18,664 | |||||||||||||||
Investment in subsidiaries | 439,090 | 472,272 | 484,723 | 634,266 | 638,679 | |||||||||||||||
Investment in unconsolidated subsidiaries | 9,052 | 8,937 | 8,820 | 8,820 | 8,820 | |||||||||||||||
Other assets | 3,019 | 2,353 | 7,943 | 9,482 | 21,006 | |||||||||||||||
Total assets | $ | 469,533 | 506,711 | 542,233 | 699,326 | 704,430 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 301,353 | 297,519 | 294,195 | 294,195 | 294,195 | ||||||||||||||
Other liabilities | 1,613 | 2,177 | 4,070 | 4,898 | 2,029 | |||||||||||||||
Total liabilities | 302,966 | 299,696 | 298,265 | 299,093 | 296,224 | |||||||||||||||
Stockholders’ equity | 166,567 | 207,015 | 243,968 | 400,233 | 408,206 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 469,533 | 506,711 | 542,233 | 699,326 | 704,430 | ||||||||||||||
Parent Company Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
Parent Company and Work-out Subsidiary
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 6/30/2009 | 6/30/2008 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 11,758 | 11,685 | 7,702 | 7,702 | 6,440 | 11,685 | — | ||||||||||||||||||||
Charge-offs | (3,898 | ) | (684 | ) | (2,699 | ) | (8,290 | ) | (8,184 | ) | (4,582 | ) | (8,184 | ) | ||||||||||||||
Specific reserves transfer from BankAtlantic | — | — | — | — | — | — | 6,440 | |||||||||||||||||||||
Provision for loan losses | 7,539 | 757 | 6,682 | 8,290 | 9,446 | 8,296 | 9,446 | |||||||||||||||||||||
Ending balance | $ | 15,399 | 11,758 | 11,685 | 7,702 | 7,702 | 15,399 | 7,702 | ||||||||||||||||||||
As of | ||||||||||||||||||||
6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 64,558 | 74,321 | 79,327 | 82,059 | 90,412 | ||||||||||||||
Specific reserves | (15,367 | ) | (11,758 | ) | (11,685 | ) | (7,702 | ) | (7,702 | ) | ||||||||||
Nonaccrual loans, net | $ | 49,191 | 62,563 | 67,642 | 74,357 | 82,710 | ||||||||||||||
Real estate owned | 4,082 | — | — | — | — | |||||||||||||||
Total nonperforming assets | $ | 53,273 | 62,563 | 67,642 | 74,357 | 82,710 | ||||||||||||||
Total Loans - gross | $ | 67,910 | 76,641 | 81,657 | 84,394 | 92,762 | ||||||||||||||
Consolidated BankAtlantic Bancorp and Subsidiaries
Nonperforming Assets and Credit Quality Statistics
Nonperforming Assets and Credit Quality Statistics
As of | ||||||||||||||||||||
(in thousands) | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | |||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
BankAtlantic | $ | 295,448 | 271,444 | 208,088 | 89,742 | 77,901 | ||||||||||||||
Parent-Work out Sub | 64,558 | 74,321 | 79,327 | 82,059 | 90,412 | |||||||||||||||
Consolidated nonaccrual loans | $ | 360,006 | 345,765 | 287,415 | 171,801 | 168,313 | ||||||||||||||
Net Charge-offs: | ||||||||||||||||||||
BankAtlantic | $ | (25,773 | ) | (22,453 | ) | (12,633 | ) | (14,913 | ) | (22,773 | ) | |||||||||
Parent-Work out Sub | (3,898 | ) | (684 | ) | (2,699 | ) | (8,290 | ) | (8,184 | ) | ||||||||||
Consolidated charge-offs | $ | (29,671 | ) | (23,137 | ) | (15,332 | ) | (23,203 | ) | (30,957 | ) | |||||||||
Loan Provision: | ||||||||||||||||||||
BankAtlantic | $ | 35,955 | 43,520 | 31,770 | 22,924 | 37,801 | ||||||||||||||
Parent-Work out Sub | 7,539 | 757 | 6,682 | 8,290 | 9,446 | |||||||||||||||
Consolidated loan provision | $ | 43,494 | 44,277 | 38,452 | 31,214 | 47,247 | ||||||||||||||
Allowance for Loan Loss: | ||||||||||||||||||||
BankAtlantic | $ | 156,821 | 146,639 | 125,572 | 106,435 | 98,424 | ||||||||||||||
Parent-Work out Sub | 15,399 | 11,758 | 11,685 | 7,702 | 7,702 | |||||||||||||||
Consolidated allowance for loan loss | $ | 172,220 | 158,397 | 137,257 | 114,137 | 106,126 | ||||||||||||||
Nonperforming Assets: | ||||||||||||||||||||
BankAtlantic | $ | 328,775 | 294,505 | 228,574 | 112,113 | 100,508 | ||||||||||||||
Parent-Work out Sub | 68,640 | 74,321 | 79,327 | 82,059 | 90,412 | |||||||||||||||
Consolidated nonperforming assets | $ | 397,415 | 368,826 | 307,901 | 194,172 | 190,920 | ||||||||||||||
Consolidated Credit Quality Statistics | ||||||||||||||||||||
Allowance for loan losses to total loans | % | 4.09 | 3.62 | 3.07 | 2.53 | 2.33 | ||||||||||||||
Allowance to nonaccrual loans | % | 47.84 | 45.81 | 47.76 | 66.44 | 63.05 | ||||||||||||||
Provision to average loans | % | 4.04 | 3.99 | 3.43 | 2.75 | 4.13 | ||||||||||||||
Nonperforming loans, gross to total loans | % | 8.55 | 7.91 | 6.44 | 3.80 | 3.70 | ||||||||||||||
Nonperforming assets, gross to total loans and other assets | % | 8.97 | 8.07 | 6.55 | 4.01 | 3.83 |