Exhibit 99.1
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BankAtlantic Bancorp Reports Financial Results
For the Third Quarter, 2009
For the Third Quarter, 2009
— BankAtlantic’s core deposits (1) reached $2.5 billion, exceeding previous record levels—
— BankAtlantic’s regulatory capital ratios increased to
13.5% for total risk-based capital and 11.6% for Tier 1 risk-based capital —
FORT LAUDERDALE, Florida – October 22, 2009 –BankAtlantic Bancorp, Inc. (NYSE: BBX) today reported a net loss from continuing operations of ($52.1) million, or ($3.45) per diluted share for the quarter ended September 30, 2009, compared to a net loss from continuing operations of ($38.4) million, or ($2.54) per diluted share for the quarter ended June 30, 2009, and a net loss from continuing operations of ($11.0) million, or ($0.73) per diluted share for the quarter ended September 30, 2008.
The increased loss was primarily the result of a higher loan loss provision in the current quarter at both BankAtlantic and the Parent company, and to a lesser extent, when compared to the 2008 third quarter, the elimination of tax benefits (due to a full deferred tax allowance since the fourth quarter of 2008).
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan commented, “We welcome the news from economists that the current recession may now be easing. However, the present environment continues to be extraordinarily demanding and presents challenges for both our customers and our industry. As we address these challenges, our management team remains dedicated to navigating through the current challenges and focusing on long-term strategies. These strategies include continuing to build our low-cost deposits, improving efficiency in our operations, de-leveraging our balance sheet, maintaining appropriate
(1) | Core deposits is a term that we use to refer to Demand, NOW and Savings accounts. A reconciliation of core deposits to total deposits is included in BankAtlantic Bancorp’s Third Quarter 2009 Supplemental Financials available at www.BankAtlanticBancorp.com. To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links. |
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levels of capital, implementing strategies for diversifying our loan portfolio, and, above all, growing and building strong customer relationships. We believe the foundation provided by these long-term efforts will position BankAtlantic well in a post-recessionary environment.
“During the third quarter, BankAtlantic Bancorp (“the Company’) successfully completed a rights offering, raising approximately $76 million in capital from existing shareholders. The Company chose to contribute $75 million of this new capital directly into BankAtlantic. As a result, BankAtlantic’s regulatory capital ratios are at their highest levels in the last decade. BankAtlantic’s capital ratios at September 30, 2009 were:
• | Tangible capital/tangible assets of 8.4% | ||
• | Core capital of 8.3% (vs. regulatory well-capitalized level of 5%) | ||
• | Tier 1 risk-based capital of 11.6% (vs. regulatory well-capitalized level of 6%) | ||
• | Total risk-based capital of 13.5% (vs. regulatory well-capitalized level of 10%) |
“Additionally, despite the higher loan loss provision in the third quarter, we continue to be very pleased with BankAtlantic’s core business results. Highlights for the third quarter of 2009 include:
• | “Core deposits have grown to record high balances, while our borrowings are at their lowest levels in nearly two decades; | ||
• | “Pre-tax core operating earnings(2), non-interest income, non-interest expense and net interest margin all improved compared to both the 2009 second quarter and the 2008 third quarter; | ||
• | “Total non-interest expenses, including what we consider core expenses(3), are at their lowest levels since 2005; | ||
• | “Total non-accrual loans declined slightly, including a net decrease in commercial real |
(2) | Pre-tax core operating earnings is a non-GAAP measure that we use to refer to pre-tax earnings before provision for loan losses, tax certificate provisions, debt redemption costs, FDIC special assessments and impairment, restructuring and exit activities. A reconciliation of loss from bank operations to pre-tax core operating earnings is included in BankAtlantic Bancorp’s Third Quarter 2009 Supplemental Financials available at www.BankAtlanticBancorp.com. To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links. | |
(3) | Core expense is a non-GAAP measure that we use to refer to total non-interest expenses excluding tax certificate provisions, debt redemption costs, FDIC special assessments, impairments, restructuring and exit activities. A reconciliation of total expense to core expense is included in BankAtlantic Bancorp’s Third Quarter 2009 |
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Supplemental Financials available at www.BankAtlanticBancorp.com. To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links. | |||
estate non-performing loans; total non-performing assets were essentially flat during the quarter; | |||
• | “Even after absorbing an increase in quarterly charge-offs, our allowance for loan losses is at the highest level in BankAtlantic’s history. |
“Our strategy throughout the last two years’ challenging economic environment has been to focus on managing credit, maintaining appropriate capital levels and improving core operating earnings. We believe our efforts have produced positive results. Deposits are up significantly. Capital ratios have increased. Margin is up, and expenses and leverage are down. We are proud of these achievements and intend to continue to focus on our fundamental strategies through the remainder of this economic cycle and to provide exceptional local service to our customers as we have for over 57 years,” concluded Alan B. Levan.
BankAtlantic Performance:
Deposits and Liquidity—BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “BankAtlantic’s deposit base continues to be a stable and growing funding source with core deposits exceeding last quarter’s then record levels. This accomplishment is particularly significant given the seasonality that has traditionally resulted in decreased deposits during the third quarter. This year we continued to experience growth in core deposits during the third quarter.
• | “Core and total deposits at September 30, 2009 were $2.5 billion and $4.0 billion, respectively, with the following strong characteristics: |
— | Non-CD balances represented approximately 71.9% of total deposits; | ||
— | The average cost of core deposits and total deposits for the third quarter of 2009 was 0.37% and 0.92%, respectively; and | ||
— | Brokered deposit balances continued to decrease and now represent only 3.0% of assets. |
• | “During the third quarter of 2009: |
— | Core deposits (Demand, NOW and Savings accounts) increased $45.5 million. |
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— | Notwithstanding growth in core deposits, total deposits declined by $95.6 million, as core deposit growth was offset by decreases in brokered deposits of $78.0 million and decreases in other non-core deposit categories of $63.1 million. | ||
— | The cost of total deposits improved, decreasing 21 basis points. |
• | “Year-to-date 2009: |
— | Core deposits increased approximately $319.9 million. | ||
— | Total deposits increased approximately $33.1 million as the strong growth in core deposits offset net declines in non-core accounts. |
“Further, BankAtlantic continued to reduce its borrowings significantly, resulting in September 30, 2009 borrowings of $416.6 million, or 8.5% of total assets. Our organically grown low-cost deposit base, combined with low levels of brokered deposits and borrowings reflect the fundamental strength of our franchise, particularly when considering the current economic environment and competitive pressures.
• | “During the third quarter of 2009, borrowings were reduced by $250.3 million, or 37.5%. | ||
• | “Since September 30, 2008, borrowings have been reduced by $1.2 billion, or 74.3%. | ||
• | “BankAtlantic’s ratio of total borrowings to deposits plus borrowings was 9.5% at September 30, 2009 compared to 14.1% at June 30, 2009 and 29.5% at September 30, 2008. |
Net Income —“BankAtlantic’s pre-tax loss was ($35.3) million for the third quarter of 2009, compared to a pre-tax loss of ($24.2) million for the second quarter of 2009 and a pre-tax loss of ($4.6) million for the third quarter of 2008. Pretax core operating earnings (as defined above) for the third quarter of 2009 improved to $23.9 million compared to $18.9 million in the second quarter of 2009, and $21.7 million in the third quarter of 2008. Loan loss and tax certificate provisions, debt redemption costs, FDIC special assessments, and impairment, restructuring and exit activity expenses, which are not included in pre-tax core operating earnings, were ($59.2) million for the third quarter of 2009, ($43.1) million for the second quarter of 2009, and ($26.3) million for the third quarter of 2008.
Net Interest Margin— “We have proactively de-leveraged our balance sheet and reduced assets through repayment of borrowings with funds from scheduled payments and pay downs on loans and securities, and sales of investment securities. As a result, our average earning assets
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have declined by $288.9 million from the second quarter 2009 and by $1.13 billion from the third quarter 2008. Additionally, while non-performing asset levels have not changed significantly since June 30, 2009, they have increased by $216.6 million since September 30, 2008. At the same time, in spite of these significant balance sheet pressures, BankAtlantic’s net interest margin has remained stable due in part to restructuring efforts, growth in our low-cost deposit base, and disciplined pricing.
• | “Net interest income for the third quarter of 2009 was $41.5 million compared to $40.1 million during the second quarter of 2009 and $51.2 million in the third quarter of 2008. | ||
• | “Net interest margin during the third quarter of 2009 was 3.59%, a 35 basis point improvement from 3.24% during the second quarter of 2009, and a three basis point improvement from 3.56% during the third quarter of 2008. Net interest spread during the third quarter of 2009 was 3.33%, improved by 41 basis points from 2.92% during the second quarter of 2009, and improved by 17 basis points from 3.16% during the third quarter of 2008. | ||
• | “This significant improvement in net interest spread from the second quarter of 2009 was primarily due to lower average rates on borrowings and certificates of deposit due to scheduled maturities and repayment of higher cost borrowings. The impact of the net interest spread improvement on the net interest income and margin was partially offset by a $288.9 million decline of average earning assets during the 2009 third quarter. | ||
• | “The improvement in net interest spread from the third quarter of 2008 was largely the result of changes in the funding mix associated with growth in core deposits and the repayment of FHLB advances. The decline in net interest income and margin from the third quarter of 2008, however, was primarily due to the impact of the $1.1 billion decline in average earning assets, which served to offset the net interest spread improvements. |
Non-interest income —“Total non-interest income for the third quarter of 2009 was $35.5 million compared to $32.8 million in the second quarter of 2009, and $33.9 million for the comparable 2008 period.
“Excluding securities gains of $4.8 million and $2.1 million in the third and second quarters of 2009, respectively, non-interest income was flat at $30.7 million in the third and
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second quarters of 2009 compared to $33.9 million during the third quarter of 2008. Service charges on deposits declined from the prior year reflecting changes in customer behavior combined with changes in our customer mix as a result of our relationship driven deposit gathering strategies.
Non-interest expense—“Expense reduction initiatives have continued to result in cost savings. As noted above, BankAtlantic’s core and total non-interest expenses are both at their lowest quarterly levels since 2005.
• | “Total expenses in the third quarter of 2009 were $60.0 million, improved from $61.1 million during the second quarter of 2009, and improved from $66.8 million in the third quarter of 2008. | ||
• | “Core expenses (as defined above) in the third quarter of 2009 were $53.1 million, improved from $54.0 million during the second quarter of 2009, and a 16.4% improvement over core expenses of $63.4 million during the third quarter of 2008. | ||
• | “Year-to-date, core expenses reflected a 16.3% improvement over the comparable nine- month period of 2008. |
“Expenses not included in core expenses consisted of the following:
• | “Costs associated with debt redemptionof $5.4 million in the third quarter of 2009 compared to $1.4 million in the second quarter of 2009 and no costs in the third quarter of 2008. These costs were associated with the prepayment of certain FHLB borrowings as part of our balance sheet de-leveraging efforts. | ||
• | “Impairment, restructuring and exit chargesof $1.7 million in the third quarter of 2009, compared to $1.8 million in the second quarter of 2009 and $0.5 million in the third quarter of 2008. The charges in the current quarter primarily related to impairments of property held for sale based on current reduced real estate values and lease exit costs. | ||
• | “Tax certificate provisionof $(0.2) million net recovery in the third quarter of 2009 compared to $1.4 million expense in the second quarter of 2009 and $2.8 million expense in the third quarter of 2008. The net recovery in the current quarter was the result of a favorable law change affecting certain out of state tax certificates. | ||
• | “FDIC special assessment chargesof $2.4 million in the second quarter of 2009 compared to $0 in the third quarters of 2009 and 2008. |
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Credit Risk Management:
• | “The provision for loan losses in the third quarter of 2009 was $52.2 million, increasing BankAtlantic’s allowance for loan losses to $166.0 million at September 30, 2009. The provision represented 4.18% of total loans at September 30, 2009, compared to 3.79% at June 30, 2009 and 2.40% at September 30, 2008. | ||
• | “The provision for loan losses in the third quarter of 2009 primarily related to our Commercial Real Estate, Consumer and Residential Real Estate loan portfolios. These portfolios continued to experience elevated levels of delinquencies, charge-offs and non-accrual loans. In particular, the Commercial Real Estate portfolio continues to be adversely affected by declining collateral values and general economic conditions. While we are hopeful that recent indications of stabilizing residential real estate markets will result in improvements in the performance of our Residential and Consumer loan portfolios, we anticipate continued pressure over the near term on our primarily Florida-based Commercial Real Estate portfolio. | ||
• | “Third quarter 2009 net charge-offs were $43.1 million, compared to net charge-offs of $25.8 million in the second quarter of 2009, and net charge-offs of $14.9 million during the third quarter of 2008. The increase in net charge-offs was due primarily to continued declines in the value of the collateral for our non-accrual loans. |
– | Third quarter 2009 net charge-offs included $21.5 million in the Commercial Real Estate loan portfolio, $12.3 million in the Consumer Loan portfolio, $7.0 million in the Residential Real Estate loan portfolio and $2.2 million in the Small Business loan portfolio. |
• | “Total non-accrual loans were $294.9 million at September 30, 2009, reflecting a slight decrease of $0.6 million from the prior quarter, but reflecting an increase of $205.1 million from September 30, 2008. The decrease in non-accrual loans during the third quarter of 2009 included a net decrease in Commercial Real Estate non-accrual loans of $14.4 million offset by a net increase of $11.3 million in Residential Real Estate non-accrual loans and a net increase of $2.2 million in Commercial business non-accrual loans. The decline in non-accrual loans was the result of the increased charge-offs discussed above. |
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• | “Total non-performing assets were $328.7 million at September 30, 2009, a decrease of $90,000 from June 30, 2009, but an increase of $216.6 million from September 30, 2008. |
“Other credit information for BankAtlantic’s three largest loan portfolios is further detailed below.
Commercial Real Estate Loans –“We continue to experience losses in our $1.2 billion commercial real estate portfolio as the economic environment continues to impact our borrowers and the values of the underlying collateral.
• | “Net charge-offs increased for the third quarter of 2009 to $21.5 million, compared to net charge-offs in the prior 2009 quarter of $10.5 million. | ||
• | “Delinquencies, excluding non-accrual loans, decreased to $12.5 million or 1.07% of total loans at September 30, 2009, compared to $22.8 million or 1.90% of total loans at June 30, 2009. | ||
• | “Total Commercial Real Estate non-accrual loans decreased by $14.4 million during the third quarter to $189.7 million at September 30, 2009, with increases in non-accrual loan balances offset primarily by charge-offs. | ||
• | “The allowance coverage for Commercial Real Estate loans was increased during the third quarter to 7.6% of the related portfolio primarily due to declines in underlying collateral values. |
At September 30, 2009, BankAtlantic’s Commercial Real Estate loan portfolio included the following:
• | “Commercial residential land acquisition, development and construction loans consisting of: |
– | Builder land bank loans:Consisting of 7 loans aggregating $47.6 million, including 6 loans aggregating $46.5 million on non-accrual at September 30, 2009. |
– | Land acquisition and development loans:Consisting of 30 loans aggregating $189.3 million, including 9 loans aggregating $60.3 million on non-accrual at September 30, 2009. |
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— | Land acquisition, development and construction loans:Consisting of 6 loans aggregating $16.2 million, including 1 loan aggregating $6.7 million on non-accrual at September 30, 2009. |
• | “Commercial land loans: Consisting of 30 loans aggregating $109.5 million, including 6 loans aggregating $40.9 million on non-accrual at September 30, 2009. | ||
• | “All other Commercial real estate loans: Portfolio of $808.4 million, including 13 loans aggregating $35.4 million on non-accrual at September 30, 2009. |
Residential Loans —“Our Residential loan portfolio was $1.6 billion at September 30, 2009, representing 41.3% of the Bank’s total loans. The purchased residential loan portfolio (representing 95% of the total residential loan portfolio) consists of approximately 5,400 first mortgage loans secured by properties throughout the United States, the weighted average FICO score of borrowers in this portfolio was 740 at the time of origination and the original back end debt ratio, which we calculate as the ratio of total debt payments (inclusive of the fully amortizing residential loan) to income, was a weighted average of 33.6%. Standard products in this portfolio have never included subprime, negative amortizing, option-arm or ‘pick-a-payment’ loans.
• | “Non-accrual balances increased during the third quarter of 2009 by $11.3 million to $76.0 million at September 30, 2009. | ||
• | “Delinquencies, excluding non-accrual loans, remained basically unchanged at $24.9 million (compared to $24.4 million at June 30, 2009); however these delinquencies as a percent of the portfolio increased to 1.52% at September 30, 2009, compared to 1.39% of the portfolio at June 30, 2009 due to reductions in the size of the portfolio at September 30, 2009. | ||
• | “Net charge-offs in the third quarter of 2009 increased to $7.0 million versus $3.6 million in the second quarter of 2009. | ||
• | “The allowance coverage for Residential loans was increased during the third quarter of 2009 to 1.45% of the related portfolio reflecting increased non-accrual balances and the decline in certain underlying collateral values. |
“We continue to expect that the delinquency levels and loss trends in the Residential portfolio will continue to mirror the broader economy and unemployment trends.
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Consumer Loans —“Our Consumer Loan portfolio had an outstanding balance of $693.0 million at September 30, 2009. BankAtlantic does not have a credit card portfolio; home equity loans represent 98% of this Consumer 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 decreased slightly during the third quarter of 2009 by $0.5 million to $11.3 million at September 30, 2009. | ||
• | “Delinquencies, excluding non-accrual loans, increased to $13.7 million or 1.97% of the portfolio at September 30, 2009, compared to $9.9 million or 1.40% of the portfolio at June 30, 2009. We believe the increase in delinquencies during the quarter may have resulted in part from actions we took at the end of the second quarter 2009 to reduce credit availability on certain higher risk lines of credit. | ||
• | “Net charge-offs in the third quarter of 2009 increased to $12.3 million versus $9.0 million in the second quarter of 2009, however we believe this increase may have been primarily due to the timing of billing and charge-off cycles between the second and third quarters. | ||
• | “The allowance coverage for Consumer loans was increased during the third quarter of 2009 to 6.02% of the related portfolio reflecting increased delinquencies and the decline in certain underlying collateral values. |
“We continue to work diligently with borrowers experiencing difficulties, and continue to believe delinquency and charge-off trends in this portfolio will mirror the Florida economy, unemployment trends and declines in housing prices.
Capital
“During the third quarter of 2009, management continued to focus on capital levels. Capital ratios at September 30, 2009 remained well above all of the regulatory defined well-capitalized thresholds. Capital ratios at September 30, 2009 were:
• | Core capital 8.3% (vs. regulatory well capitalized level of 5%) | ||
• | Tier 1 risk-based capital 11.6% (vs. regulatory well capitalized level of 6%) | ||
• | Total risk-based capital 13.5% (vs. regulatory well capitalized level of 10%) | ||
• | Tangible capital/tangible assets 8.4%. |
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Key activities during the third quarter of 2009 which impacted capital levels included:
• | Reduced total and risk-based assets through balance sheet de-leveraging activities (primarily through repayment of borrowings with proceeds from scheduled loan and securities payments and pay downs, and sales of investment securities); | ||
• | Capital contribution of $75 million from BankAtlantic Bancorp; and | ||
• | Continued suspension of dividends from BankAtlantic.” |
BankAtlantic Bancorp:
Alan B. Levan further commented, “As noted previously, during the third quarter of 2009, BankAtlantic Bancorp completed its rights offering and received approximately $76 million of proceeds in connection with the exercise of rights by its shareholders. As a result, Bancorp issued an aggregate of approximately 38 million shares of its Class A Common Stock to participating shareholders. Upon completion of the rights offering, the Company and BankAtlantic reported that they were withdrawing their application to participate in the U.S. Treasury’s Capital Purchase Program.
“On September 30, 2009, Bancorp contributed $75.0 million in capital to BankAtlantic. While BankAtlantic did not require this capital contribution to maintain well-capitalized levels, Bancorp continues to demonstrate its intent to support BankAtlantic. Year-to-date, Bancorp has contributed $105 million in capital to BankAtlantic.
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 has 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 $56.8 million with specific loan reserves of $18.7 million at September 30, 2009. During the third quarter of 2009, these loans were written-down by $8.1 million and one loan totaling $2.2 million was transferred to Real
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Estate Owned. The breakdown of the non-accrual loans held by the Company’s asset workout subsidiary at September 30, 2009 was as follows:
• | “Builder land bank loans:Consisting of 3 loans aggregating $15.5 million. | ||
• | “Land acquisition and development loans:Consisting of 4 loans aggregating $14.0 million. | ||
• | “Land acquisition, development and construction loans:Consisting of 7 loans aggregating $18.5 million. | ||
• | “Commercial business loans:Consisting of 3 loans aggregating $5.6 million. |
“We are hopeful that recently announced economic data are positive signs of an improved operating environment for our customers. While we must continue to be vigilant and prepared for continued economic stress, 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 atwww.BankAtlanticBancorp.com.
To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links. 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 third 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, October 22, 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 should reference conference ID number36178755.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Thursday, November 5, 2009. To access the replay
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option in the U.S. and Canada, the toll free number to call is (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 is36178755.
Webcast Information:
Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visitwww.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Webcast” navigation link, or go directly tohttp://www.visualwebcaster.com/event.asp?id=63091. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Monday, November 23, 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.
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 and Media Relations Officer
Telephone: (954) 940-5300
Email:InvestorRelations@BankAtlanticBancorp.com
Leo Hinkley, Investor and Media 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
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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, decreases in real estate values, and increased unemployment on our business generally, our regulatory capital ratios and the ability of our borrowers to service their obligations and 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
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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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Supplemental Financial Information
Third Quarter 2009
Third Quarter 2009
Release Date: October 22, 2009
This information is preliminary, unaudited and based on data available at the time of the release.
Table of Contents | Page | |||
Consolidated BankAtlantic Bancorp, Inc. and Subsidiaries | ||||
Summary of Selected Financial Data (unaudited) | 2 | |||
Consolidated Statement of Financial Condition (unaudited) | 3 | |||
Consolidated Statements of Operations (unaudited) | 4 | |||
Consolidated Average Balance Sheet (unaudited) | 5 | |||
Nonperforming Assets and Credit Quality Statistics | 6 | |||
Reconciliation of GAAP Financial Measures to Non-GAAP Measures | 7 | |||
BankAtlantic (Bank Operations Business Segment) | ||||
Summary of Selected Financial Data (unaudited) | 8 | |||
Condensed Statements of Operations (unaudited) | 9 | |||
Condensed Statements of Financial Condition (unaudited) | 10 | |||
Quarterly Average Balance Sheet — Yield/Rate Analysis | 11 | |||
Year-to-Date Average Balance Sheet — Yield/Rate Analysis | 12 | |||
Allowance for Loan Loss and Net Charge-offs | 13 | |||
Nonperforming Assets | 13 | |||
Credit Statistics | 13 | |||
Delinquencies, Excluding Non-Accrual Loans, at Period-End | 14 | |||
Loan Provision and Allowance for Loan Losses by Portfolio | 14 | |||
Reconciliation of GAAP Financial Measures to Non-GAAP Measures | 15 | |||
Parent Company Business Segment | ||||
Condensed Statements of Operations (unaudited) | 16 | |||
Condensed Statements of Financial Condition (unaudited) | 16 | |||
Allowance for Loan Loss and Credit Quality | 16 |
BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)
Summary of Selected Financial Data (unaudited)
For the Nine | ||||||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||||
Net loss from continuing operations | $ | (52,089 | ) | (38,356 | ) | (46,611 | ) | (164,335 | ) | (10,982 | ) | (137,056 | ) | (54,909 | ) | |||||||||||||||||
Net loss | $ | (52,589 | ) | (38,356 | ) | (42,410 | ) | (153,770 | ) | (6,063 | ) | (133,355 | ) | (48,869 | ) | |||||||||||||||||
Pre-tax core operating earnings | (note 1) | $ | 18,463 | 12,238 | 10,953 | (2,111 | ) | 16,323 | 41,654 | 41,994 | ||||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 15,096 | 15,093 | 15,090 | 15,087 | 15,082 | 15,093 | 15,077 | |||||||||||||||||||||||||
Diluted | 15,096 | 15,093 | 15,090 | 15,087 | 15,082 | 15,093 | 15,077 | |||||||||||||||||||||||||
Key Performance Ratios | ||||||||||||||||||||||||||||||||
Diluted loss per share from continuing operations | (note 2) | $ | (3.45 | ) | (2.54 | ) | (3.09 | ) | (10.89 | ) | (0.73 | ) | (9.08 | ) | (3.64 | ) | ||||||||||||||||
Diluted loss per share | (note 2) | $ | (3.48 | ) | (2.54 | ) | (2.81 | ) | (10.19 | ) | (0.40 | ) | (8.84 | ) | (3.24 | ) | ||||||||||||||||
Non-GAAP Key Performance Ratios | ||||||||||||||||||||||||||||||||
Return on average tangible assets from continuing operations | (note 3) | % | (4.14 | ) | (2.88 | ) | (3.24 | ) | (10.96 | ) | (0.69 | ) | (3.40 | ) | (1.17 | ) | ||||||||||||||||
Return on average tangible equity from continuing operations | (note 3) | % | (132.56 | ) | (80.39 | ) | (81.46 | ) | (192.00 | ) | (12.76 | ) | (95.16 | ) | (20.26 | ) | ||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||||
Assets | $ | 5,046 | 5,351 | 5,775 | 6,073 | 6,397 | 5,388 | 6,327 | ||||||||||||||||||||||||
Tangible assets — Non-GAAP | (note 3) | $ | 5,030 | 5,334 | 5,749 | 5,999 | 6,322 | 5,368 | 6,252 | |||||||||||||||||||||||
Loans, gross | $ | 4,134 | 4,302 | 4,435 | 4,482 | 4,544 | 4,289 | 4,586 | ||||||||||||||||||||||||
Investments | $ | 575 | 705 | 947 | 1,054 | 1,347 | 741 | 1,226 | ||||||||||||||||||||||||
Deposits and escrows | $ | 4,046 | 4,089 | 3,986 | 3,917 | 3,935 | 4,041 | 3,930 | ||||||||||||||||||||||||
Stockholders’ equity | $ | 166 | 205 | 250 | 410 | 415 | 206 | 436 | ||||||||||||||||||||||||
Tangible stockholders’ equity — Non-GAAP | (note 3) | $ | 157 | 191 | 229 | 342 | 344 | 192 | 361 | |||||||||||||||||||||||
Period End ($ in thousands) | ||||||||||||||||||||||||||||||||
Total loans, net | $ | 3,845,837 | 4,036,754 | 4,212,536 | 4,326,651 | 4,405,098 | ||||||||||||||||||||||||||
Total assets | $ | 4,941,189 | 5,261,025 | 5,570,760 | 5,814,557 | 6,227,884 | ||||||||||||||||||||||||||
Total stockholders’ equity | $ | 189,442 | 166,567 | 207,015 | 243,968 | 400,233 | ||||||||||||||||||||||||||
Class A common shares outstanding | 48,245,042 | 10,264,106 | 10,259,344 | 10,258,057 | 10,254,570 | |||||||||||||||||||||||||||
Class B common shares outstanding | 975,225 | 975,225 | 975,225 | 975,225 | 975,225 | |||||||||||||||||||||||||||
Book value per share | $ | 3.85 | 14.82 | 18.43 | 21.72 | 35.63 | ||||||||||||||||||||||||||
Tangible book value per share — Non-GAAP | (note 4) | $ | 3.64 | 13.85 | 17.18 | 20.08 | 29.47 | |||||||||||||||||||||||||
High stock price for the quarter | $ | 6.68 | 4.75 | 5.67 | 11.82 | 15.00 | ||||||||||||||||||||||||||
Low stock price for the quarter | $ | 2.60 | 1.99 | 0.66 | 2.25 | 4.05 | ||||||||||||||||||||||||||
Closing stock price | $ | 2.90 | 3.86 | 2.01 | 5.80 | 8.20 |
Notes:
(1) | Pre-tax core operating earnings excludes provision for loan losses, cost associated with debt redemption, provision for tax certificates, FDIC special assessment and impairments, restructuring and exit activities. Pre-tax core operating earnings is a non-GAAP measure. See page 7 for a reconciliation of non-GAAP measures to GAAP financial measures. | ||
(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. Average tangible assets and average tangible equity are non-GAAP measures. See page 7 for a reconciliation of non-GAAP measures to GAAP financial measures. | ||
(4) | Tangible book value per share is defined as stockholders’ equity less goodwill and core deposit intangibles divided by the number of common shares outstanding. Tangible book value per share is a non-GAAP measure. See page 7 for a reconciliation of non-GAAP measures to GAAP financial measures. |
2
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
Consolidated Statements of Financial Condition (unaudited)
September 30, | December 31, | |||||||||
(in thousands) | 2009 | 2008 | ||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ | 207,921 | 158,957 | |||||||
Securities available for sale (at fair value) | 355,511 | 701,845 | ||||||||
Investment securities (approximate fair value: $3,768 and $2,503) | 2,036 | 2,036 | ||||||||
Tax certificates, net of allowance of $6,881 and $6,064 | 138,401 | 213,534 | ||||||||
Loans receivable, net of allowance for loan losses of $184,662 and $137,257 | 3,845,837 | 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 | 17,218 | 18,383 | ||||||||
Real estate owned | 37,075 | 19,045 | ||||||||
Office properties and equipment, net | 205,248 | 216,978 | ||||||||
Goodwill and other intangible assets | 16,139 | 26,244 | ||||||||
Other assets | 67,052 | 76,277 | ||||||||
Total assets | $ | 4,941,189 | 5,814,557 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Liabilities: | ||||||||||
Deposits | ||||||||||
Demand | $ | 809,749 | 741,691 | |||||||
Savings | 425,508 | 419,494 | ||||||||
NOW | 1,238,542 | 992,762 | ||||||||
Money market | 372,442 | 427,762 | ||||||||
Certificates of deposit | 1,113,238 | 1,344,659 | ||||||||
Total deposits | 3,959,479 | 3,926,368 | ||||||||
Advances from FHLB | 342,016 | 967,028 | ||||||||
Securities sold under agreements to repurchase | 33,437 | 46,084 | ||||||||
Federal funds purchased and other short term borrowings | 2,759 | 238,339 | ||||||||
Subordinated debentures and bonds payable | 22,738 | 22,864 | ||||||||
Junior subordinated debentures | 304,944 | 294,195 | ||||||||
Other liabilities | 86,374 | 75,711 | ||||||||
Total liabilities | 4,751,747 | 5,570,589 | ||||||||
Stockholders’ equity: | ||||||||||
Common stock | 493 | 113 | ||||||||
Additional paid-in capital | 295,754 | 218,974 | ||||||||
Retained (deficit) earnings | (100,969 | ) | 32,667 | |||||||
Total stockholders’ equity before accumulated other comprehensive loss | 195,278 | 251,754 | ||||||||
Accumulated other comprehensive loss | (5,836 | ) | (7,786 | ) | ||||||
Total stockholders’ equity | 189,442 | 243,968 | ||||||||
Total liabilities and stockholders’ equity | $ | 4,941,189 | 5,814,557 | |||||||
3
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For the Nine | ||||||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||||||
(in thousands) | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | |||||||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 45,028 | 47,747 | 49,678 | 56,660 | 60,843 | 142,453 | 190,562 | ||||||||||||||||||||||||
Interest on securities available for sale | 4,766 | 6,328 | 8,559 | 9,434 | 9,966 | 19,653 | 31,009 | |||||||||||||||||||||||||
Interest on tax certificates | 3,793 | 3,061 | 4,193 | 4,769 | 8,893 | 11,047 | 17,384 | |||||||||||||||||||||||||
Interest and dividends on investments | 161 | 44 | 179 | 250 | 1,482 | 384 | 4,448 | |||||||||||||||||||||||||
Total interest income | 53,748 | 57,180 | 62,609 | 71,113 | 81,184 | 173,537 | 243,403 | |||||||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Interest on deposits | 9,420 | 11,527 | 12,987 | 15,610 | 15,552 | 33,934 | 48,653 | |||||||||||||||||||||||||
Interest on advances from FHLB | 2,494 | 5,082 | 7,164 | 10,162 | 13,401 | 14,740 | 40,780 | |||||||||||||||||||||||||
Interest on short-term borrowed funds | 9 | 19 | 172 | 151 | 330 | 200 | 2,334 | |||||||||||||||||||||||||
Interest on long-term debt | 3,973 | 4,280 | 4,538 | 6,008 | 5,484 | 12,791 | 16,987 | |||||||||||||||||||||||||
Total interest expense | 15,896 | 20,908 | 24,861 | 31,931 | 34,767 | 61,665 | 108,754 | |||||||||||||||||||||||||
NET INTEREST INCOME | 37,852 | 36,272 | 37,748 | 39,182 | 46,417 | 111,872 | 134,649 | |||||||||||||||||||||||||
Provision for loan losses | 63,586 | 43,494 | 44,277 | 38,452 | 31,214 | 151,357 | 121,349 | |||||||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | (25,734 | ) | (7,222 | ) | (6,529 | ) | 730 | 15,203 | (39,485 | ) | 13,300 | |||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Service charges on deposits | 19,767 | 19,347 | 18,685 | 21,501 | 23,924 | 57,799 | 72,404 | |||||||||||||||||||||||||
Other service charges and fees | 7,355 | 8,059 | 7,025 | 7,096 | 7,309 | 22,439 | 21,863 | |||||||||||||||||||||||||
Securities activities, net | 4,774 | 693 | 4,440 | (3,320 | ) | 1,132 | 9,907 | 5,359 | ||||||||||||||||||||||||
Other | 3,711 | 3,423 | 2,959 | 2,576 | 2,831 | 10,093 | 10,085 | |||||||||||||||||||||||||
Total non-interest income | 35,607 | 31,522 | 33,109 | 27,853 | 35,196 | 100,238 | 109,711 | |||||||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Employee compensation and benefits | 24,876 | 25,935 | 28,806 | 28,882 | 31,679 | 79,617 | 100,015 | |||||||||||||||||||||||||
Occupancy and equipment | 14,553 | 14,842 | 14,911 | 16,228 | 15,996 | 44,306 | 48,554 | |||||||||||||||||||||||||
Advertising and business promotion | 1,549 | 1,979 | 2,832 | 4,348 | 3,430 | 6,360 | 11,987 | |||||||||||||||||||||||||
Professional fees | 3,470 | 2,695 | 3,326 | 4,622 | 3,160 | 9,491 | 8,139 | |||||||||||||||||||||||||
Check losses | 1,146 | 991 | 844 | 1,854 | 2,094 | 2,981 | 6,913 | |||||||||||||||||||||||||
Supplies and postage | 1,035 | 999 | 1,004 | 1,294 | 1,080 | 3,038 | 3,368 | |||||||||||||||||||||||||
Telecommunication | 353 | 586 | 698 | 866 | 753 | 1,637 | 3,586 | |||||||||||||||||||||||||
Cost associated with debt redemption | 5,431 | 1,441 | 591 | 1,236 | — | 7,463 | 2 | |||||||||||||||||||||||||
Provision for tax certificates | (198 | ) | 1,414 | 1,486 | 3,641 | 2,838 | 2,702 | 3,645 | ||||||||||||||||||||||||
Impairment of goodwill | — | — | 9,124 | 48,284 | — | 9,124 | — | |||||||||||||||||||||||||
Impairment, restructuring and exit activities | 1,730 | 1,817 | 2,086 | 3,620 | 522 | 5,633 | 6,409 | |||||||||||||||||||||||||
FDIC special assessment | — | 2,428 | — | — | — | 2,428 | — | |||||||||||||||||||||||||
Other | 8,014 | 7,529 | 7,483 | 11,052 | 7,098 | 23,026 | 19,804 | |||||||||||||||||||||||||
Total non-interest expense | 61,959 | 62,656 | 73,191 | 125,927 | 68,650 | 197,806 | 212,422 | |||||||||||||||||||||||||
Loss from continuing operations before income taxes | (52,086 | ) | (38,356 | ) | (46,611 | ) | (97,344 | ) | (18,251 | ) | (137,053 | ) | (89,411 | ) | ||||||||||||||||||
Provision (benefit) for income taxes | 3 | — | — | 66,991 | (7,269 | ) | 3 | (34,502 | ) | |||||||||||||||||||||||
Loss from continuing operations | (52,089 | ) | (38,356 | ) | (46,611 | ) | (164,335 | ) | (10,982 | ) | (137,056 | ) | (54,909 | ) | ||||||||||||||||||
Discontinued operations | (500 | ) | — | 4,201 | 10,565 | 4,919 | 3,701 | 6,040 | ||||||||||||||||||||||||
Net loss | $ | (52,589 | ) | (38,356 | ) | (42,410 | ) | (153,770 | ) | (6,063 | ) | (133,355 | ) | (48,869 | ) | |||||||||||||||||
4
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) | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,698,715 | 1,821,553 | 1,916,589 | 1,956,429 | 2,010,749 | ||||||||||||||||||
Commercial real estate | 1,262,163 | 1,291,536 | 1,305,809 | 1,309,670 | 1,320,678 | |||||||||||||||||||
Consumer | 717,473 | 730,988 | 744,371 | 754,709 | 755,050 | |||||||||||||||||||
Commercial business | 140,621 | 141,254 | 146,703 | 138,598 | 135,909 | |||||||||||||||||||
Small business | 314,672 | 316,287 | 321,991 | 322,417 | 322,048 | |||||||||||||||||||
Total Loans | 4,133,644 | 4,301,618 | 4,435,463 | 4,481,823 | 4,544,434 | |||||||||||||||||||
Investments | 575,183 | 704,874 | 947,219 | 1,054,126 | 1,346,852 | |||||||||||||||||||
Total interest earning assets | 4,708,827 | 5,006,492 | 5,382,682 | 5,535,949 | 5,891,286 | |||||||||||||||||||
Goodwill and core deposit intangibles | 16,297 | 16,618 | 25,971 | 74,166 | 75,029 | |||||||||||||||||||
Other non-interest earning assets | 321,070 | 327,876 | 365,847 | 462,813 | 430,683 | |||||||||||||||||||
Total assets | $ | 5,046,194 | 5,350,986 | 5,774,500 | 6,072,928 | 6,396,998 | ||||||||||||||||||
Tangible assets — Non-GAAP | (note 3) | $ | 5,029,897 | 5,334,368 | 5,748,529 | 5,998,762 | 6,321,969 | |||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand deposits | $ | 808,817 | 810,006 | 775,982 | 770,152 | 812,505 | ||||||||||||||||||
Savings | 431,516 | 451,122 | 441,278 | 425,256 | 471,270 | |||||||||||||||||||
NOW | 1,237,459 | 1,159,531 | 1,047,116 | 958,389 | 955,392 | |||||||||||||||||||
Money market | 392,344 | 412,065 | 421,883 | 461,253 | 557,343 | |||||||||||||||||||
Certificates of deposit | 1,175,821 | 1,256,299 | 1,300,056 | 1,301,953 | 1,138,615 | |||||||||||||||||||
Total deposits | 4,045,957 | 4,089,023 | 3,986,315 | 3,917,003 | 3,935,125 | |||||||||||||||||||
Short-term borrowed funds | 31,905 | 45,433 | 253,317 | 110,080 | 79,503 | |||||||||||||||||||
FHLB advances | 410,628 | 625,254 | 903,077 | 1,258,944 | 1,598,111 | |||||||||||||||||||
Long-term debt | 324,729 | 320,945 | 317,184 | 319,400 | 320,283 | |||||||||||||||||||
Total borrowings | 767,262 | 991,632 | 1,473,578 | 1,688,424 | 1,997,897 | |||||||||||||||||||
Other liabilities | 66,855 | 65,599 | 65,092 | 57,852 | 48,981 | |||||||||||||||||||
Total liabilities | 4,880,074 | 5,146,254 | 5,524,985 | 5,663,279 | 5,982,003 | |||||||||||||||||||
Stockholders’ equity | 166,120 | 204,732 | 249,515 | 409,649 | 414,995 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,046,194 | 5,350,986 | 5,774,500 | 6,072,928 | 6,396,998 | ||||||||||||||||||
Other comprehensive (loss) income in stockholders’ equity | (7,356 | ) | (2,729 | ) | (5,347 | ) | (6,874 | ) | (4,184 | ) | ||||||||||||||
Tangible stockholders’ equity — Non-GAAP | (note 3) | $ | 157,179 | 190,843 | 228,891 | 342,357 | 344,150 | |||||||||||||||||
Net Interest Margin | 3.23 | % | 2.89 | % | 2.78 | % | 2.85 | % | 3.16 | % | ||||||||||||||
5
Consolidated BankAtlantic Bancorp and Subsidiaries
Nonperforming Assets and Credit Quality Statistics
Nonperforming Assets and Credit Quality Statistics
(in thousands) | As of | |||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||||
BankAtlantic | $ | 294,865 | 295,448 | 271,444 | 208,088 | 89,742 | ||||||||||||||||
Parent- Work out Sub | 53,520 | 64,558 | 74,321 | 79,327 | 82,059 | |||||||||||||||||
Consolidated nonaccrual loans | $ | 348,385 | 360,006 | 345,765 | 287,415 | 171,801 | ||||||||||||||||
Net Charge-offs: | ||||||||||||||||||||||
BankAtlantic | $ | (43,092 | ) | (25,773 | ) | (22,453 | ) | (12,633 | ) | (14,913 | ) | |||||||||||
Parent- Work out Sub | (8,051 | ) | (3,898 | ) | (684 | ) | (2,699 | ) | (8,290 | ) | ||||||||||||
Consolidated charge-offs | $ | (51,143 | ) | (29,671 | ) | (23,137 | ) | (15,332 | ) | (23,203 | ) | |||||||||||
Loan Provision: | ||||||||||||||||||||||
BankAtlantic | $ | 52,246 | 35,955 | 43,520 | 31,770 | 22,924 | ||||||||||||||||
Parent- Work out Sub | 11,340 | 7,539 | 757 | 6,682 | 8,290 | |||||||||||||||||
Consolidated loan provision | $ | 63,586 | 43,494 | 44,277 | 38,452 | 31,214 | ||||||||||||||||
Allowance for Loan Loss: | ||||||||||||||||||||||
BankAtlantic | $ | 165,975 | 156,821 | 146,639 | 125,572 | 106,435 | ||||||||||||||||
Parent- Work out Sub | 18,688 | 15,399 | 11,758 | 11,685 | 7,702 | |||||||||||||||||
Consolidated allowance for loan loss | $ | 184,663 | 172,220 | 158,397 | 137,257 | 114,137 | ||||||||||||||||
Nonperforming Assets: | ||||||||||||||||||||||
BankAtlantic | $ | 328,685 | 328,775 | 294,505 | 228,574 | 112,113 | ||||||||||||||||
Parent- Work out Sub | 59,787 | 68,640 | 74,321 | 79,327 | 82,059 | |||||||||||||||||
Consolidated nonperforming assets | $ | 388,472 | 397,415 | 368,826 | 307,901 | 194,172 | ||||||||||||||||
Consolidated Credit Quality Statistics | ||||||||||||||||||||||
Allowance for loan losses to total loans | % | 4.58 | 4.09 | 3.62 | 3.07 | 2.53 | ||||||||||||||||
Allowance to nonaccrual loans | % | 53.01 | 47.84 | 45.81 | 47.76 | 66.44 | ||||||||||||||||
Provision to average loans | % | 6.15 | 4.04 | 3.99 | 3.43 | 2.75 | ||||||||||||||||
Nonperforming loans, gross to total loans | % | 8.64 | 8.55 | 7.91 | 6.44 | 3.80 | ||||||||||||||||
Nonperforming assets, gross to total loans and other assets | % | 9.22 | 8.97 | 8.07 | 6.55 | 4.01 |
6
BankAtlantic Bancorp, Inc. and Subsidiaries
Reconciliation of GAAP Financial Measures to Non-GAAP Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Measures
Management uses non-GAAP financial measures to supplement its GAAP financial information and to provide additional useful measures in the evaluation of the Company’s operating results and any related trends that may be affecting the Company’s business. Management uses pre-tax core operating earnings to measure the Company’s ongoing financial performance excluding items that are unusual or that are not currently controllable by management. Management uses book value per share and tangible book value per share to enable investors to compare these measures to the quoted market price of the Company’s Class A common stock and to other companies in the industry. The return on average tangible equity and average tangible assets is used by management to measure the Company’s effectiveness in its use of capital and assets, respectively, and to allow for comparison to other companies in the industry. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Reconciliation of loss from continuing operations before income taxes to pre-tax core operating earnings | ||||||||||||||||||||||||||||||
For the Nine | ||||||||||||||||||||||||||||||
(in thousands) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||
Loss from continuing operations before income taxes | $ | (52,086 | ) | (38,356 | ) | (46,611 | ) | (97,344 | ) | (18,251 | ) | (137,053 | ) | (89,411 | ) | |||||||||||||||
Costs associated with debt redemption | 5,431 | 1,441 | 591 | 1,236 | — | 7,463 | 2 | |||||||||||||||||||||||
Provision for tax certificates | (198 | ) | 1,414 | 1,486 | 3,641 | 2,838 | 2,702 | 3,645 | ||||||||||||||||||||||
Impairment of goodwill | — | — | 9,124 | 48,284 | — | 9,124 | — | |||||||||||||||||||||||
Impairment, restructuring and exit activities | 1,730 | 1,817 | 2,086 | 3,620 | 522 | 5,633 | 6,409 | |||||||||||||||||||||||
FDIC special assessment | — | 2,428 | — | — | — | 2,428 | — | |||||||||||||||||||||||
Provision for loan losses | 63,586 | 43,494 | 44,277 | 38,452 | 31,214 | 151,357 | 121,349 | |||||||||||||||||||||||
Non-GAAP pre-tax core operating earnings | $ | 18,463 | 12,238 | 10,953 | (2,111 | ) | 16,323 | 41,654 | 41,994 | |||||||||||||||||||||
Reconciliation of stockholders’ equity to tangible book value per share | ||||||||||||||||||||||
($ in thousands) | For the Three Months Ended | |||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||
Stockholders’ equity | $ | 189,442 | 166,567 | 207,015 | 243,968 | 400,233 | ||||||||||||||||
Goodwill and core deposit intangibles | (16,139 | ) | (16,461 | ) | (16,784 | ) | (26,244 | ) | (74,864 | ) | ||||||||||||
Other comprehensive loss | 5,836 | 5,540 | 2,750 | 7,786 | 5,558 | |||||||||||||||||
Tangible book value | $ | 179,139 | 155,646 | 192,981 | 225,510 | 330,927 | ||||||||||||||||
Common shares outstanding, period end | 49,220,267 | 11,239,331 | 11,234,569 | 11,233,282 | 11,229,795 | |||||||||||||||||
Book value per share | $ | 3.85 | 14.82 | 18.43 | 21.72 | 35.64 | ||||||||||||||||
Tangible book value per share — Non-GAAP | $ | 3.64 | 13.85 | 17.18 | 20.08 | 29.47 | ||||||||||||||||
Reconciliation of return on average assets and average equity to return on average tangible assets and average tangible equity | ||||||||||||||||||||||||||||||
For the Nine | ||||||||||||||||||||||||||||||
($ in thousands) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||
Net loss from continuing operations | $ | (52,089 | ) | (38,356 | ) | (46,611 | ) | (164,335 | ) | (10,982 | ) | (137,056 | ) | (54,909 | ) | |||||||||||||||
Average total assets | 5,046,194 | 5,350,986 | 5,774,500 | 6,072,928 | 6,396,998 | 5,387,892 | 6,327,487 | |||||||||||||||||||||||
Average goodwill and core deposit intangibles | (16,297 | ) | (16,618 | ) | (25,971 | ) | (74,166 | ) | (75,029 | ) | (19,593 | ) | (75,381 | ) | ||||||||||||||||
Average tangible assets | 5,029,897 | 5,334,368 | 5,748,529 | 5,998,762 | 6,321,969 | 5,368,299 | 6,252,106 | |||||||||||||||||||||||
Average stockholders’ equity | 166,120 | 204,732 | 249,515 | 409,649 | 414,995 | 206,483 | 436,316 | |||||||||||||||||||||||
Average goodwill and core deposit intangibles | (16,297 | ) | (16,618 | ) | (25,971 | ) | (74,166 | ) | (75,029 | ) | (19,593 | ) | (75,381 | ) | ||||||||||||||||
Other comprehensive loss | 7,356 | 2,729 | 5,347 | 6,874 | 4,184 | 5,151 | 350 | |||||||||||||||||||||||
Average tangible stockholders’ equity | $ | 157,179 | 190,843 | 228,891 | 342,357 | 344,150 | 192,041 | 361,285 | ||||||||||||||||||||||
Return on average assets from continuing operations | (-4.13 | )% | -2.87 | % | -3.23 | % | -10.82 | % | -0.69 | % | -10.18 | % | -3.47 | % | ||||||||||||||||
Return on average tangible assets from continuing operations — Non-GAAP | -4.14 | % | -2.88 | % | -3.24 | % | -10.96 | % | -0.69 | % | -10.21 | % | -3.51 | % | ||||||||||||||||
Return on average stockholders’ equity from continuing operations | -125.42 | % | -74.94 | % | -74.72 | % | -160.46 | % | -10.59 | % | -265.51 | % | -50.34 | % | ||||||||||||||||
Return on average tangible assets from continuing operations — Non-GAAP | -132.56 | % | -80.39 | % | -81.46 | % | -192.00 | % | -12.76 | % | -285.47 | % | -60.79 | % | ||||||||||||||||
7
BankAtlantic (Bank Operations Business Segment)
Summary of Selected Financial Data (unaudited)
Summary of Selected Financial Data (unaudited)
For the Nine | ||||||||||||||||||||||||||||||
(in thousands except percentages) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||||
Average interest earning assets | $ | 4,640,967 | 4,929,849 | 5,291,754 | 5,436,572 | 5,770,265 | 4,951,806 | 5,670,172 | ||||||||||||||||||||||
Average interest bearing liabilities | $ | 3,717,691 | 3,992,654 | 4,414,439 | 4,571,084 | 4,839,138 | 4,039,043 | 4,721,230 | ||||||||||||||||||||||
Period end borrowings to deposits and borrowings | % | 9.52 | 14.12 | 19.12 | 24.89 | 29.53 | 9.52 | 29.53 | ||||||||||||||||||||||
Efficiency ratio | % | 77.99 | 83.83 | 96.07 | 162.43 | 78.49 | 85.90 | 81.38 | ||||||||||||||||||||||
Yield on interest earning assets | % | 4.63 | 4.62 | 4.72 | 5.22 | 5.61 | 4.66 | 5.70 | ||||||||||||||||||||||
Cost of interest-bearing liabilities | % | 1.30 | 1.70 | 1.90 | 2.30 | 2.45 | 1.65 | 2.64 | ||||||||||||||||||||||
Interest spread | % | 3.33 | 2.92 | 2.82 | 2.92 | 3.16 | 3.01 | 3.06 | ||||||||||||||||||||||
Net interest margin | % | 3.59 | 3.24 | 3.14 | 3.29 | 3.56 | 3.32 | 3.50 | ||||||||||||||||||||||
Non-GAAP Measures (Note 1) | ||||||||||||||||||||||||||||||
Average tangible assets | $ | 4,959,000 | 5,254,284 | 5,648,268 | 5,881,742 | 6,187,300 | 5,284,659 | 6,092,344 | ||||||||||||||||||||||
Average tangible equity | $ | 376,006 | 391,404 | 401,665 | 492,366 | 486,523 | 389,597 | 473,584 | ||||||||||||||||||||||
Pre-tax core operating earnings | $ | 23,908 | 18,877 | 16,218 | 9,561 | 21,667 | 59,003 | 57,609 | ||||||||||||||||||||||
Core operating efficiency ratio | % | 68.94 | 74.09 | 78.27 | 87.36 | 74.54 | 73.71 | 77.44 | ||||||||||||||||||||||
Return on average tangible assets | % | (2.85 | ) | (1.84 | ) | (2.87 | ) | (9.05 | ) | (0.14 | ) | (2.52 | ) | (0.73 | ) | |||||||||||||||
Return on average tangible equity | % | (37.56 | ) | (24.71 | ) | (40.42 | ) | (108.06 | ) | (1.72 | ) | (34.25 | ) | (9.33 | ) | |||||||||||||||
Tangible capital to tangible assets | % | 8.37 | 7.09 | 7.10 | 6.83 | 7.89 | ||||||||||||||||||||||||
Earning assets repricing at period end: | ||||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 49 | 51 | 50 | 49 | 53 | ||||||||||||||||||||||||
Percent of earning assets that have variable rates | % | 51 | 49 | 50 | 51 | 47 | ||||||||||||||||||||||||
One year Gap | % | 6 | 2 | (3 | ) | 3 | (2 | ) | ||||||||||||||||||||||
Regulatory capital ratios at period end | ||||||||||||||||||||||||||||||
Total risk-based capital | % | 13.51 | 11.81 | 11.86 | 11.63 | 11.75 | ||||||||||||||||||||||||
Tier I risk-based capital | % | 11.60 | 9.93 | 10.01 | 9.80 | 9.95 | ||||||||||||||||||||||||
Core capital | % | 8.31 | 7.01 | 6.97 | 6.80 | 6.89 |
Note 1
See page 15 for a reconciliation of non-GAAP measures to GAAP financial measures.
See page 15 for a reconciliation of non-GAAP measures to GAAP financial measures.
8
BankAtlantic (Bank Operations Business Segment)
Condensed Statements of Operations (unaudited)
Condensed Statements of Operations (unaudited)
For the Nine | ||||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||||
(in thousands) | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | |||||||||||||||||||||||
Net interest income | $ | 41,485 | 40,078 | 41,769 | 44,525 | 51,195 | 123,332 | 149,123 | ||||||||||||||||||||||
Provision for loan losses | 52,246 | 35,955 | 43,520 | 31,770 | 22,924 | 131,721 | 103,613 | |||||||||||||||||||||||
Net interest income after provision for loan losses | (10,761 | ) | 4,123 | (1,751 | ) | 12,755 | 28,271 | (8,389 | ) | 45,510 | ||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||
Service charges on deposits | 19,767 | 19,347 | 18,685 | 21,501 | 23,924 | 57,799 | 72,404 | |||||||||||||||||||||||
Other service charges and fees | 7,355 | 8,059 | 7,025 | 7,096 | 7,309 | 22,439 | 21,863 | |||||||||||||||||||||||
Securities activities, net | 4,774 | 2,067 | 4,320 | 93 | 1 | 11,161 | 2,302 | |||||||||||||||||||||||
Other non-interest income | 3,596 | 3,303 | 2,835 | 2,419 | 2,684 | 9,734 | 9,630 | |||||||||||||||||||||||
Total non-interest income | 35,492 | 32,776 | 32,865 | 31,109 | 33,918 | 101,133 | 106,199 | |||||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||||
Employee compensation and benefits | 23,917 | 24,985 | 28,078 | 29,137 | 30,353 | 76,980 | 96,714 | |||||||||||||||||||||||
Occupancy and equipment | 14,553 | 14,842 | 14,910 | 16,227 | 15,993 | 44,305 | 48,547 | |||||||||||||||||||||||
Advertising and business promotion | 1,514 | 1,846 | 2,781 | 4,243 | 3,388 | 6,141 | 11,813 | |||||||||||||||||||||||
Professional fees | 2,752 | 2,336 | 2,944 | 4,019 | 2,696 | 8,032 | 6,960 | |||||||||||||||||||||||
Check losses | 1,146 | 991 | 844 | 1,854 | 2,094 | 2,981 | 6,913 | |||||||||||||||||||||||
Supplies and postage | 987 | 991 | 1,000 | 1,220 | 1,076 | 2,978 | 3,360 | |||||||||||||||||||||||
Telecommunication | 348 | 580 | 694 | 860 | 748 | 1,622 | 3,570 | |||||||||||||||||||||||
Cost associated with debt redemption | 5,431 | 1,441 | 591 | 1,236 | — | 7,463 | 2 | |||||||||||||||||||||||
Provision for tax certificates | (198 | ) | 1,414 | 1,486 | 3,641 | 2,838 | 2,702 | 3,645 | ||||||||||||||||||||||
Impairment of goodwill | — | — | 9,124 | 48,284 | — | 9,124 | — | |||||||||||||||||||||||
Impairment, restructuring and exit activities | 1,730 | 1,817 | 2,086 | 3,620 | 522 | 5,633 | 6,409 | |||||||||||||||||||||||
FDIC special assessment | — | 2,428 | — | — | — | 2,428 | — | |||||||||||||||||||||||
Other | 7,852 | 7,406 | 7,165 | 8,513 | 7,098 | 22,423 | 19,836 | |||||||||||||||||||||||
Total non-interest expense | 60,032 | 61,077 | 71,703 | 122,854 | 66,806 | 192,812 | 207,769 | |||||||||||||||||||||||
Loss from bank operations business segment before income taxes | (35,301 | ) | (24,178 | ) | (40,589 | ) | (78,990 | ) | (4,617 | ) | (100,068 | ) | (56,060 | ) | ||||||||||||||||
Provision (benefit) for income taxes | 3 | — | — | 54,022 | (2,525 | ) | 3 | (22,928 | ) | |||||||||||||||||||||
Net loss from bank operations business segment | $ | (35,304 | ) | (24,178 | ) | (40,589 | ) | (133,012 | ) | (2,092 | ) | (100,071 | ) | (33,132 | ) | |||||||||||||||
9
BankAtlantic (Bank Operations Business Segment)
Condensed Statements of Financial Condition (unaudited)
Condensed Statements of Financial Condition (unaudited)
As of | ||||||||||||||||||||||
(in thousands) | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | |||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans receivable, net | $ | 3,807,800 | 3,984,305 | 4,147,713 | 4,256,741 | 4,328,467 | ||||||||||||||||
Investment securities | 187,152 | 227,861 | 221,392 | 268,141 | 371,181 | |||||||||||||||||
Available for sale securities | 355,340 | 431,762 | 518,871 | 700,250 | 731,279 | |||||||||||||||||
Goodwill | 13,081 | 13,081 | 13,081 | 22,205 | 70,489 | |||||||||||||||||
Core deposit intangible asset | 3,058 | 3,380 | 3,703 | 4,039 | 4,375 | |||||||||||||||||
Other assets | 515,954 | 529,322 | 583,843 | 462,314 | 607,188 | |||||||||||||||||
Total assets | $ | 4,882,385 | 5,189,711 | 5,488,603 | 5,713,690 | 6,112,979 | ||||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||||
Deposits | ||||||||||||||||||||||
Demand | $ | 809,749 | 802,446 | 798,687 | 741,691 | 767,179 | ||||||||||||||||
Savings | 425,508 | 438,127 | 457,991 | 419,494 | 432,246 | |||||||||||||||||
NOW | 1,238,542 | 1,187,742 | 1,084,744 | 992,762 | 938,366 | |||||||||||||||||
Money market | 372,442 | 395,903 | 413,777 | 427,762 | 494,505 | |||||||||||||||||
Certificates of deposit | 1,113,238 | 1,230,829 | 1,298,114 | 1,344,659 | 1,235,936 | |||||||||||||||||
Total deposits | 3,959,479 | 4,055,047 | 4,053,313 | 3,926,368 | 3,868,232 | |||||||||||||||||
Advances from Federal Home Loan Bank | 342,016 | 597,020 | 817,024 | 967,028 | 1,468,032 | |||||||||||||||||
Short term borrowings | 51,825 | 47,039 | 118,077 | 311,074 | 127,041 | |||||||||||||||||
Long term debt | 22,738 | 22,781 | 22,822 | 22,864 | 26,098 | |||||||||||||||||
Other liabilities | 83,085 | 84,454 | 72,279 | 71,643 | 72,552 | |||||||||||||||||
Total liabilities | 4,459,143 | 4,806,341 | 5,083,515 | 5,298,977 | 5,561,955 | |||||||||||||||||
Stockholder’s equity | 423,242 | 383,370 | 405,088 | 414,713 | 551,024 | |||||||||||||||||
Total liabilities and stockholder’s equity | $ | 4,882,385 | 5,189,711 | 5,488,603 | 5,713,690 | 6,112,979 | ||||||||||||||||
10
BankAtlantic (Bank Operations Business Segment)
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||||
September 30, 2009 | September 30, 2008 | |||||||||||||||||||||||||
(in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||
Residential real estate | $ | 1,698,715 | 21,320 | 5.02 | % | $ | 2,010,749 | 27,275 | 5.43 | % | ||||||||||||||||
Commercial real estate | 1,196,418 | 11,566 | 3.87 | 1,229,755 | 17,687 | 5.75 | ||||||||||||||||||||
Consumer | 717,473 | 5,245 | 2.92 | 755,050 | 7,951 | 4.21 | ||||||||||||||||||||
Commercial business | 139,085 | 1,833 | 5.27 | 134,374 | 2,414 | 7.19 | ||||||||||||||||||||
Small business | 314,672 | 5,004 | 6.36 | 322,048 | 5,458 | 6.78 | ||||||||||||||||||||
Total loans | 4,066,363 | 44,968 | 4.42 | 4,451,976 | 60,785 | 5.46 | ||||||||||||||||||||
Investments | 574,604 | 8,700 | 6.06 | 1,318,289 | 20,159 | 6.12 | ||||||||||||||||||||
Total interest earning assets | 4,640,967 | 53,668 | 4.63 | % | 5,770,265 | 80,944 | 5.61 | % | ||||||||||||||||||
Goodwill and core deposit intangibles | 16,297 | 75,029 | ||||||||||||||||||||||||
Other non-interest earning assets | 318,033 | 417,035 | ||||||||||||||||||||||||
Total Assets | $ | 4,975,297 | $ | 6,262,329 | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Savings | $ | 431,516 | 367 | 0.34 | % | $ | 471,270 | 963 | 0.81 | % | ||||||||||||||||
NOW | 1,237,459 | 1,930 | 0.62 | 955,392 | 2,256 | 0.94 | ||||||||||||||||||||
Money market | 392,344 | 642 | 0.65 | 557,343 | 2,089 | 1.49 | ||||||||||||||||||||
Certificates of deposit | 1,175,821 | 6,480 | 2.19 | 1,138,615 | 10,244 | 3.58 | ||||||||||||||||||||
Total interest bearing deposits | 3,237,140 | 9,419 | 1.15 | 3,122,620 | 15,552 | 1.98 | ||||||||||||||||||||
Short-term borrowed funds | 47,186 | 15 | 0.13 | 92,319 | 378 | 1.63 | ||||||||||||||||||||
Advances from FHLB | 410,628 | 2,494 | 2.41 | 1,598,111 | 13,401 | 3.34 | ||||||||||||||||||||
Long-term debt | 22,737 | 255 | 4.45 | 26,088 | 418 | 6.37 | ||||||||||||||||||||
Total interest bearing liabilities | 3,717,691 | 12,183 | 1.30 | 4,839,138 | 29,749 | 2.45 | ||||||||||||||||||||
Demand deposits | 808,802 | 812,402 | ||||||||||||||||||||||||
Non-interest bearing other liabilities | 63,870 | 53,279 | ||||||||||||||||||||||||
Total Liabilities | 4,590,363 | 5,704,819 | ||||||||||||||||||||||||
Stockholder’s equity | 384,934 | 557,510 | ||||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 4,975,297 | $ | 6,262,329 | ||||||||||||||||||||||
Net interest income/ net interest spread | 41,485 | 3.33 | % | 51,195 | 3.16 | % | ||||||||||||||||||||
Margin | ||||||||||||||||||||||||||
Interest income/interest earning assets | 4.63 | % | 5.61 | % | ||||||||||||||||||||||
Interest expense/interest earning assets | 1.04 | 2.05 | ||||||||||||||||||||||||
Net interest margin | 3.59 | % | 3.56 | % | ||||||||||||||||||||||
11
BankAtlantic (Bank Operations Business Segment)
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2009 | September 30, 2008 | |||||||||||||||||||||||||||
(in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Residential real estate | $ | 1,811,487 | 69,736 | 5.13 | % | $ | 2,086,286 | 85,396 | 5.46 | % | ||||||||||||||||||
Commercial real estate | 1,214,049 | 35,802 | 3.93 | 1,242,058 | 54,162 | 5.81 | ||||||||||||||||||||||
Consumer | 730,846 | 15,946 | 2.91 | 740,221 | 26,778 | 4.82 | ||||||||||||||||||||||
Commercial business | 141,301 | 5,655 | 5.34 | 131,055 | 7,178 | 7.30 | ||||||||||||||||||||||
Small business | 317,623 | 15,020 | 6.31 | 320,328 | 16,873 | 7.02 | ||||||||||||||||||||||
Total loans | 4,215,306 | 142,159 | 4.50 | 4,519,948 | 190,387 | 5.62 | ||||||||||||||||||||||
Investments | 736,500 | 30,908 | 5.60 | 1,150,224 | 51,996 | 6.03 | ||||||||||||||||||||||
Total interest earning assets | 4,951,806 | 173,067 | 4.66 | % | 5,670,172 | 242,383 | 5.70 | % | ||||||||||||||||||||
Goodwill and core deposit intangibles | 19,593 | 75,381 | ||||||||||||||||||||||||||
Other non-interest earning assets | 332,853 | 422,172 | ||||||||||||||||||||||||||
Total Assets | $ | 5,304,252 | $ | 6,167,725 | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Savings | $ | 441,270 | 1,258 | 0.38 | % | $ | 529,723 | 4,265 | 1.08 | % | ||||||||||||||||||
NOW | 1,148,733 | 5,155 | 0.60 | 941,297 | 6,837 | 0.97 | ||||||||||||||||||||||
Money market | 408,656 | 2,089 | 0.68 | 594,338 | 7,674 | 1.72 | ||||||||||||||||||||||
Certificates of deposit | 1,243,603 | 25,431 | 2.73 | 1,016,390 | 29,878 | 3.93 | ||||||||||||||||||||||
Total deposits | 3,242,262 | 33,933 | 1.40 | 3,081,748 | 48,654 | 2.11 | ||||||||||||||||||||||
Short-term borrowed funds | 129,487 | 223 | 0.23 | 142,181 | 2,490 | 2.34 | ||||||||||||||||||||||
Advances from FHLB | 644,516 | 14,740 | 3.06 | 1,471,029 | 40,780 | 3.70 | ||||||||||||||||||||||
Long-term debt | 22,778 | 839 | 4.92 | 26,272 | 1,336 | 6.79 | ||||||||||||||||||||||
Total interest bearing liabilities | 4,039,043 | 49,735 | 1.65 | 4,721,230 | 93,260 | 2.64 | ||||||||||||||||||||||
Demand deposits | 798,390 | 848,558 | ||||||||||||||||||||||||||
Non-interest bearing other liabilities | 62,751 | 49,308 | ||||||||||||||||||||||||||
Total Liabilities | 4,900,184 | 5,619,096 | ||||||||||||||||||||||||||
Stockholder’s equity | 404,068 | 548,629 | ||||||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,304,252 | $ | 6,167,725 | ||||||||||||||||||||||||
Net interest income/net interest spread | 123,332 | 3.01 | % | 149,123 | 3.06 | % | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||||||
Interest income/interest earning assets | 4.66 | % | 5.70 | % | ||||||||||||||||||||||||
Interest expense/interest earning assets | 1.34 | 2.20 | ||||||||||||||||||||||||||
Net interest margin | 3.32 | % | 3.50 | % | ||||||||||||||||||||||||
12
BankAtlantic (Bank Operations Business Segment)
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
For the Nine | ||||||||||||||||||||||||||||||
(in thousands) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||||
Beginning balance | $ | 156,821 | 146,639 | 125,572 | 106,435 | 98,424 | 125,572 | 94,020 | ||||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||||
Residential real estate | (7,174 | ) | (3,923 | ) | (4,588 | ) | (2,088 | ) | (1,077 | ) | (15,685 | ) | (2,728 | ) | ||||||||||||||||
Commercial real estate | (21,541 | ) | (10,530 | ) | (5,565 | ) | — | (4,965 | ) | (37,636 | ) | (60,057 | ) | |||||||||||||||||
Commercial business | — | (516 | ) | — | — | — | (516 | ) | — | |||||||||||||||||||||
Consumer | (12,490 | ) | (9,118 | ) | (10,321 | ) | (9,197 | ) | (7,684 | ) | (31,929 | ) | (19,745 | ) | ||||||||||||||||
Small business | (2,249 | ) | (2,347 | ) | (2,771 | ) | (1,755 | ) | (1,471 | ) | (7,367 | ) | (3,131 | ) | ||||||||||||||||
Total charge-offs | (43,454 | ) | (26,434 | ) | (23,245 | ) | (13,040 | ) | (15,197 | ) | (93,133 | ) | (85,661) | |||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||||
Residential real estate | 133 | 360 | 323 | 130 | 75 | 816 | 267 | |||||||||||||||||||||||
Commercial real estate | — | — | 278 | — | — | 278 | — | |||||||||||||||||||||||
Commercial business | — | 5 | 1 | 3 | 9 | 6 | 38 | |||||||||||||||||||||||
Consumer | 157 | 130 | 95 | 163 | 63 | 382 | 281 | |||||||||||||||||||||||
Small business | 72 | 166 | 95 | 111 | 137 | 333 | 317 | |||||||||||||||||||||||
Total recoveries | 362 | 661 | 792 | 407 | 284 | 1,815 | 903 | |||||||||||||||||||||||
Net charge-offs | (43,092 | ) | (25,773 | ) | (22,453 | ) | (12,633 | ) | (14,913 | ) | (91,318 | ) | (84,758 | ) | ||||||||||||||||
Transfer specific reserves to Parent | — | — | — | — | — | — | (6,440 | ) | ||||||||||||||||||||||
Provision for loan losses | 52,246 | 35,955 | 43,520 | 31,770 | 22,924 | 131,721 | 103,613 | |||||||||||||||||||||||
Ending balance | $ | 165,975 | 156,821 | 146,639 | 125,572 | 106,435 | 165,975 | 106,435 | ||||||||||||||||||||||
As of | ||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||
Credit Quality | ||||||||||||||||||||||
Nonaccrual loans | ||||||||||||||||||||||
Commercial real estate | $ | 189,720 | 204,104 | 204,560 | 161,947 | 56,419 | ||||||||||||||||
Consumer | 11,336 | 11,821 | 7,984 | 6,763 | 5,867 | |||||||||||||||||
Small business | 9,693 | 8,916 | 7,383 | 4,644 | 3,911 | |||||||||||||||||
Residential real estate | 76,022 | 64,720 | 45,630 | 34,734 | 23,545 | |||||||||||||||||
Commercial business | 8,094 | 5,887 | 5,887 | — | — | |||||||||||||||||
Total Nonaccrual loans | 294,865 | 295,448 | 271,444 | 208,088 | 89,742 | |||||||||||||||||
Nonaccrual tax certificates | 3,011 | 3,091 | 1,298 | 1,441 | 2,317 | |||||||||||||||||
Real estate owned | 30,796 | 30,213 | 21,763 | 19,045 | 20,054 | |||||||||||||||||
Other repossessed assets | 13 | 23 | — | — | — | |||||||||||||||||
Total nonperforming assets | $ | 328,685 | 328,775 | 294,505 | 228,574 | 112,113 | ||||||||||||||||
Allowance for loan losses to total loans | % | 4.18 | 3.79 | 3.41 | 2.87 | 2.40 | ||||||||||||||||
Allowance to nonaccrual loans | % | 56.29 | 53.08 | 54.02 | 60.35 | 118.60 | ||||||||||||||||
Provision to average loans | % | 5.14 | 3.40 | 4.00 | 2.89 | 2.06 | ||||||||||||||||
Annualized net charge-offs to average loans | % | 4.24 | 2.44 | 2.06 | 1.15 | 1.34 | ||||||||||||||||
Nonperforming loans to total loans | % | 7.42 | 7.13 | 6.32 | 4.75 | 2.02 | ||||||||||||||||
Nonperforming assets to total loans and other assets | % | 7.92 | 7.54 | 6.55 | 4.95 | 2.36 |
13
BankAtlantic (Bank Operations Business Segment)
Delinquencies, Excluding Non-Accrual Loans, at Period-End
Delinquencies, Excluding Non-Accrual Loans, at Period-End
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||||||||||||
Commercial real estate | % | 1.07 | * | 0.72 | * | 2.39 | * | 1.34 | * | 0.41 | ||||||||||||||||||||||
Consumer | % | 1.97 | 1.40 | 1.71 | 1.60 | 1.17 | ||||||||||||||||||||||||||
Small business | % | 1.25 | 1.12 | 2.11 | 1.31 | 0.95 | ||||||||||||||||||||||||||
Residential real estate | % | 1.52 | ** | 1.39 | ** | 1.46 | ** | 1.04 | 0.79 | |||||||||||||||||||||||
Commercial business | % | 3.27 | — | 0.13 | — | — | ||||||||||||||||||||||||||
Total BankAtlantic | % | 1.51 | * | 1.13 | * | 1.77 | * | 1.20 | * | 0.73 | ||||||||||||||||||||||
* | Excludes $0, $14.3 million, $15.7 million, $58.5 million and $26 million of Commercial Real Estate loans at September 30, 2009, 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 $1.6 billion, $1.7 billion and $1.8 billion of purchased residential loans with delinquencies excluding non-accrual loans of 1.44%, 1.38%, 1.38% as of September 30, 2009, June 30, 2009 and March 31, 2009, respectively. |
BankAtlantic (Bank Operations Business Segment)
Loan Provision & Allowance for Loan Losses
Loan Provision & Allowance for Loan Losses
Allowance | % of Reserves | |||||||||||||
3Q 2009 | for Loan | to Total | ||||||||||||
($ in thousands) | Loan Provision | Losses | Loans | |||||||||||
Commercial real estate | $ | 30,083 | 88,164 | 7.56 | % | |||||||||
Consumer | 11,686 | 41,735 | 6.02 | |||||||||||
Small business | 2,125 | 9,178 | 2.93 | |||||||||||
Residential real estate | 8,352 | 23,724 | 1.45 | |||||||||||
Commercial business | — | 3,174 | 2.13 | |||||||||||
Total BankAtlantic | $ | 52,246 | 165,975 | 4.18 | % | |||||||||
14
BankAtlantic (Bank Operations Business Segment)
Reconciliation of GAAP Financial Measures to Non-GAAP Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Measures
Management uses non-GAAP financial measures to supplement its GAAP financial information and to provide additional useful measures in the evaluation of BankAtlantic’s operating results and any related trends that may be affecting BankAtlantic’s business. Management uses pre-tax core operating earnings to measure BankAtlantic’s ongoing financial performance excluding items that are unusual or that are not currently controllable by management. Management uses core expenses to measure expense reduction trends excluding items that are unusual or that are not currently controllable by management. The core operating efficiency ratio is used by management to measure the costs expended to generate a dollar of revenues, excluding items that are unusual or that are not currently controllable by management. The return on average tangible equity and average tangible assets is used by management to measure BankAtlantic’s effectiveness in its use of capital and assets, respectively, and to allow for comparison to other companies in the industry. The tangible equity to tangible asset ratio is used by management to evaluate capital adequacy trends and to allow for comparison to other companies in the industry. Management uses the core deposit measure to assess trends relating to its lower cost deposit categories, which management believes may generally be more indicative of relationship deposits. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Reconciliation of loss from bank operations business segment before income taxes to pre-tax core operating earnings | ||||||||||||||||||||||||||||||
For the Nine | ||||||||||||||||||||||||||||||
($ in thousands) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||
Loss from bank operations business segment before income taxes | $ | (35,301 | ) | (24,178 | ) | (40,589 | ) | (78,990 | ) | (4,617 | ) | (100,068 | ) | (56,060 | ) | |||||||||||||||
Costs associated with debt redemption | 5,431 | 1,441 | 591 | 1,236 | — | 7,463 | 2 | |||||||||||||||||||||||
Provision for tax certificates | (198 | ) | 1,414 | 1,486 | 3,641 | 2,838 | 2,702 | 3,645 | ||||||||||||||||||||||
Impairment of goodwill | — | — | 9,124 | 48,284 | — | 9,124 | — | |||||||||||||||||||||||
Impairment, restructuring and exit activities | 1,730 | 1,817 | 2,086 | 3,620 | 522 | 5,633 | 6,409 | |||||||||||||||||||||||
FDIC special assessment | — | 2,428 | — | — | — | 2,428 | — | |||||||||||||||||||||||
Provision for loan losses | 52,246 | 35,955 | 43,520 | 31,770 | 22,924 | 131,721 | 103,613 | |||||||||||||||||||||||
Non-GAAP pre-tax core operating earnings | $ | 23,908 | 18,877 | 16,218 | 9,561 | 21,667 | 59,003 | 57,609 | ||||||||||||||||||||||
Reconciliation of non-interest expense to core expenses and calculation of core operating efficiency ratio | ||||||||||||||||||||||||||||||
For the Nine | ||||||||||||||||||||||||||||||
($ in thousands) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||
Non-interest expense | $ | 60,032 | 61,077 | 71,703 | 122,854 | 66,806 | 192,812 | 207,769 | ||||||||||||||||||||||
Costs associated with debt redemption | (5,431 | ) | (1,441 | ) | (591 | ) | (1,236 | ) | — | (7,463 | ) | (2 | ) | |||||||||||||||||
Provision for tax certificates | 198 | (1,414 | ) | (1,486 | ) | (3,641 | ) | (2,838 | ) | (2,702 | ) | (3,645 | ) | |||||||||||||||||
Impairment of goodwill | — | — | (9,124 | ) | (48,284 | ) | — | (9,124 | ) | — | ||||||||||||||||||||
Impairment, restructuring and exit activities | (1,730 | ) | (1,817 | ) | (2,086 | ) | (3,620 | ) | (522 | ) | (5,633 | ) | (6,409 | ) | ||||||||||||||||
FDIC special assessment | — | (2,428 | ) | — | — | — | (2,428 | ) | — | |||||||||||||||||||||
Core expenses | $ | 53,069 | 53,977 | 58,416 | 66,073 | 63,446 | 165,462 | 197,713 | ||||||||||||||||||||||
Net interest income | 41,485 | 40,078 | 41,769 | 44,525 | 51,195 | 123,332 | 149,123 | |||||||||||||||||||||||
Non-interest income | 35,492 | 32,776 | 32,865 | 31,109 | 33,918 | 101,133 | 106,199 | |||||||||||||||||||||||
Total revenues | $ | 76,977 | 72,854 | 74,634 | 75,634 | 85,113 | 224,465 | 255,322 | ||||||||||||||||||||||
Non-GAAP core operating efficiency ratio | 68.94 | % | 74.09 | % | 78.27 | % | 87.36 | % | 74.54 | % | 73.71 | % | 77.44 | % | ||||||||||||||||
Reconciliation of return on average assets and average equity to return on average tangible assets and average tangible equity | ||||||||||||||||||||||||||||||
For the Nine | ||||||||||||||||||||||||||||||
($ in thousands) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||
Net loss from bank operations business segment | $ | (35,304 | ) | (24,178 | ) | (40,589 | ) | (133,012 | ) | (2,092 | ) | (100,071 | ) | (33,132 | ) | |||||||||||||||
Average total assets | 4,975,297 | 5,270,902 | 5,674,239 | 5,955,908 | 6,262,329 | 5,304,252 | 6,167,725 | |||||||||||||||||||||||
Average goodwill and core deposit intangibles | (16,297 | ) | (16,618 | ) | (25,825 | ) | (74,166 | ) | (75,029 | ) | (19,593 | ) | (75,381 | ) | ||||||||||||||||
Average tangible assets | 4,959,000 | 5,254,284 | 5,648,414 | 5,881,742 | 6,187,300 | 5,284,659 | 6,092,344 | |||||||||||||||||||||||
Average stockholders’ equity | 384,934 | 405,382 | 422,154 | 560,382 | 557,510 | 404,068 | 548,629 | |||||||||||||||||||||||
Average goodwill and core deposit intangibles | (16,297 | ) | (16,618 | ) | (25,825 | ) | (74,166 | ) | (75,029 | ) | (19,593 | ) | (75,381 | ) | ||||||||||||||||
Other comprehensive loss | 7,369 | 2,640 | 5,336 | 6,150 | 4,042 | 5,122 | 336 | |||||||||||||||||||||||
Average tangible stockholder’s equity | $ | 376,006 | 391,404 | 401,665 | 492,366 | 486,523 | 389,597 | 473,584 | ||||||||||||||||||||||
Return on average assets from continuing operations | -2.84 | % | -1.83 | % | -2.86 | % | -8.93 | % | -0.13 | % | -2.52 | % | -0.72 | % | ||||||||||||||||
Return on average tangible assets from continuing operations — Non-GAAP | -2.85 | % | -1.84 | % | -2.87 | % | -9.05 | % | -0.14 | % | -2.52 | % | -0.73 | % | ||||||||||||||||
Return on average stockholders’ equity from continuing operations | -36.69 | % | -23.86 | % | -38.46 | % | -94.94 | % | -1.50 | % | -33.02 | % | -8.05 | % | ||||||||||||||||
Return on average tangible assets from continuing operations — Non-GAAP | -37.56 | % | -24.71 | % | -40.42 | % | -108.06 | % | -1.72 | % | -34.25 | % | -9.33 | % | ||||||||||||||||
Reconciliation of stockholder’s equity to total tangible capital; Total assets to total tangible assets; The calculation of tangible capital to tangible assets | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||
Stockholder’s equity | $ | 423,242 | 383,370 | 405,088 | 414,713 | 551,024 | ||||||||||||||||
Goodwill and core deposit intangibles | (16,139 | ) | (16,461 | ) | (16,784 | ) | (26,244 | ) | (74,864 | ) | ||||||||||||
Total tangible capital | 407,103 | 366,909 | 388,304 | 388,469 | 476,160 | |||||||||||||||||
Total assets | 4,882,385 | 5,189,711 | 5,488,603 | 5,713,690 | 6,112,979 | |||||||||||||||||
Goodwill and core deposit intangibles | (16,139 | ) | (16,461 | ) | (16,784 | ) | (26,244 | ) | (74,864 | ) | ||||||||||||
Total tangible assets | $ | 4,866,246 | $ | 5,173,250 | $ | 5,471,819 | $ | 5,687,446 | $ | 6,038,115 | ||||||||||||
Non-GAAP tangible capital to tangible assets | 8.37 | % | 7.09 | % | 7.10 | % | 6.83 | % | 7.89 | % | ||||||||||||
Reconciliation of total deposits to core deposits | ||||||||||||||||||||||
(in thousands) | For the Three Months Ended | |||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||
Total deposits | $ | 3,959,479 | 4,055,047 | 4,053,313 | 3,926,368 | 3,868,232 | ||||||||||||||||
Money market | (372,442 | ) | (395,903 | ) | (413,777 | ) | (427,762 | ) | (494,505 | ) | ||||||||||||
Certificates of deposit | (1,113,238 | ) | (1,230,829 | ) | (1,298,114 | ) | (1,344,659 | ) | (1,235,936 | ) | ||||||||||||
Core deposits | 2,473,799 | 2,428,315 | 2,341,422 | 2,153,947 | 2,137,791 | |||||||||||||||||
15
Parent Company Business Segment
Condensed Statements of Operations (unaudited)
Condensed Statements of Operations (unaudited)
For the Nine | ||||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||||
(in thousands) | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | |||||||||||||||||||||||
Net interest expense | $ | (3,633 | ) | (3,807 | ) | (4,021 | ) | (5,343 | ) | (4,778 | ) | (11,461 | ) | (14,476 | ) | |||||||||||||||
Provision for loan losses | 11,340 | 7,539 | 757 | 6,682 | 8,290 | 19,636 | 17,736 | |||||||||||||||||||||||
Net interest income after provision for loan losses | (14,973 | ) | (11,346 | ) | (4,778 | ) | (12,025 | ) | (13,068 | ) | (31,097 | ) | (32,212 | ) | ||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 109 | 115 | 118 | 155 | 143 | 342 | 445 | |||||||||||||||||||||||
Securities activities, net | — | (1,375 | ) | 120 | (3,413 | ) | 1,131 | (1,255 | ) | 3,057 | ||||||||||||||||||||
Other | 255 | 287 | 222 | 287 | 202 | 764 | 742 | |||||||||||||||||||||||
Non-interest income | 364 | (973 | ) | 460 | (2,971 | ) | 1,476 | (149 | ) | 4,244 | ||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||||
Employee compensation and benefits | 959 | 950 | 728 | (255 | ) | 1,326 | 2,637 | 3,301 | ||||||||||||||||||||||
Advertising and business promotion | 35 | 134 | 51 | 105 | 42 | 220 | 174 | |||||||||||||||||||||||
Professional fees | 718 | 359 | 382 | 603 | 464 | 1,459 | 1,179 | |||||||||||||||||||||||
Other | 464 | 416 | 543 | 2,905 | 210 | 1,423 | 729 | |||||||||||||||||||||||
Non-interest expense | 2,176 | 1,859 | 1,704 | 3,358 | 2,042 | 5,739 | 5,383 | |||||||||||||||||||||||
Loss from parent company activities before income taxes | (16,785 | ) | (14,178 | ) | (6,022 | ) | (18,354 | ) | (13,634 | ) | (36,985 | ) | (33,351 | ) | ||||||||||||||||
Provision (benefit) for income taxes | — | — | — | 12,969 | (4,744 | ) | — | (11,574 | ) | |||||||||||||||||||||
Net loss from parent company business segment | $ | (16,785 | ) | (14,178 | ) | (6,022 | ) | (31,323 | ) | (8,890 | ) | (36,985 | ) | (21,777 | ) | |||||||||||||||
Parent Company Business Segment
Condensed Statements of Financial Condition — Unaudited
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||||
(in thousands) | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | |||||||||||||||||
ASSETS | ||||||||||||||||||||||
Cash | $ | 16,105 | 16,122 | 19,860 | 37,116 | 41,031 | ||||||||||||||||
Securities | 2,207 | 2,250 | 3,289 | 3,631 | 5,727 | |||||||||||||||||
Investment in subsidiaries | 466,671 | 439,090 | 472,272 | 484,723 | 634,266 | |||||||||||||||||
Investment in unconsolidated subsidiaries | 9,161 | 9,052 | 8,937 | 8,820 | 8,820 | |||||||||||||||||
Other assets | 2,630 | 3,019 | 2,353 | 7,943 | 9,482 | |||||||||||||||||
Total assets | $ | 496,774 | 469,533 | 506,711 | 542,233 | 699,326 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||
Subordinated debentures and notes payable | $ | 304,944 | 301,353 | 297,519 | 294,195 | 294,195 | ||||||||||||||||
Other liabilities | 2,388 | 1,613 | 2,177 | 4,070 | 4,898 | |||||||||||||||||
Total liabilities | 307,332 | 302,966 | 299,696 | 298,265 | 299,093 | |||||||||||||||||
Stockholders’ equity | 189,442 | 166,567 | 207,015 | 243,968 | 400,233 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 496,774 | 469,533 | 506,711 | 542,233 | 699,326 | ||||||||||||||||
Parent Company Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
Parent Company and Work-out Subsidiary | ||||||||||||||||||||||||||||||
(in thousands) | For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | 9/30/2009 | 9/30/2008 | ||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||||
Beginning balance | $ | 15,399 | 11,758 | 11,685 | 7,702 | 7,702 | 11,685 | — | ||||||||||||||||||||||
Charge-offs | (8,051 | ) | (3,898 | ) | (684 | ) | (2,699 | ) | (8,290 | ) | (12,633 | ) | (16,474 | ) | ||||||||||||||||
Specific reserves transfer from BankAtlantic | — | — | — | — | — | — | 6,440 | |||||||||||||||||||||||
Provision for loan losses | 11,340 | 7,539 | 757 | 6,682 | 8,290 | 19,636 | 17,736 | |||||||||||||||||||||||
Ending balance | 18,688 | 15,399 | 11,758 | 11,685 | 7,702 | 18,688 | 7,702 | |||||||||||||||||||||||
As of | ||||||||||||||||||||||
9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||||||||
Credit Quality | ||||||||||||||||||||||
Total Loans — gross | $ | 56,783 | 67,910 | 76,641 | 81,657 | 84,394 | ||||||||||||||||
Nonaccrual loans | $ | 53,520 | 64,558 | 74,321 | 79,327 | 82,059 | ||||||||||||||||
Specific reserves | (18,680 | ) | (15,367 | ) | (11,758 | ) | (11,685 | ) | (7,702 | ) | ||||||||||||
Nonaccrual loans, net | $ | 34,840 | 49,191 | 62,563 | 67,642 | 74,357 | ||||||||||||||||
Real estate owned | 6,267 | 4,082 | — | — | — | |||||||||||||||||
Total nonperforming assets | $ | 41,107 | 53,273 | 62,563 | 67,642 | 74,357 | ||||||||||||||||
16