Exhibit 99.1
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BankAtlantic Bancorp Reports Financial Results
For the Third Quarter, 2010
For the Third Quarter, 2010
FORT LAUDERDALE, Florida — November 16, 2010 — BankAtlantic Bancorp, Inc. (NYSE: BBX) today reported a net loss from continuing operations of ($25.2) million, or ($0.42) per diluted share, for the quarter ended September 30, 2010, compared to a net loss from continuing operations of ($52.1) million, or ($3.43) per diluted share, for the quarter ended September 30, 2009.
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “The improvement in the financial results this quarter as compared to the same quarter of 2009 is due primarily to a reduced provision for loan losses, which declined over 60% in the third quarter of 2010 as compared to the same quarter a year ago. The lower provision for loan losses resulted primarily from lower charge-offs and a decline in additions to specific valuation allowances on Commercial Real Estate loans during the current quarter.”
Highlights of the BankAtlantic Operating Segment:
BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “As a community bank, we are mindful of the impact this recession has had on our customers, their families, and the businesses and communities we serve. We are proud to have provided our customers with financial solutions in these difficult times and to have met their banking needs. We plan to continue to work hard to meet our customer’s needs and continue to provide a high level of service which we believe contributed to BankAtlantic being ranked “Highest Customer Satisfaction with Retail Banking in Florida” by J.D. Power and Associates.”
BankAtlantic Performance:
Deposits and Borrowings—“Core(1) and total deposits at September 30, 2010 were $2.8 billion and $3.8 billion, respectively, as compared to $2.5 billion and $4.0 billion, respectively, as of September 30, 2009. At September 30, 2010:
(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, 2010 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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• | “Non-certificate of deposit balances represented approximately 83.1% of total deposits; | ||
• | “The average cost of core deposits and total deposits for the third quarter of 2010 were 0.24% and 0.49%, respectively; and | ||
• | “Brokered deposit balances represented only 0.59% of assets and 0.69% of total deposits. |
• | “BankAtlantic continues to maintain a low level of borrowings, with total borrowings of $234.7 million, or 5.2% of total assets, at September 30, 2010. Total borrowings at September 30, 2009 were $416.6 million, or 8.5% of total assets. | ||
• | “BankAtlantic’s loan to deposit ratio was 83.9% at September 30, 2010, as compared to 96.2% at September 30, 2009. |
Results of Operations —“BankAtlantic’s net loss was ($17.7) million for the third quarter of 2010, compared to a net loss of ($39.9) million for the second quarter of 2010, and a net loss of ($35.3) million for the third quarter of 2009. Pretax core operating earnings(2) for the third quarter of 2010 were $13.9 million, compared to $9.1 million for the second quarter of 2010, and $24.0 million for the third quarter of 2009. The decline in the third quarter 2010 core earnings from the 2009 comparative quarter was largely due to: lower net interest income primarily related to lower asset balances combined with an increase in lower-yielding excess cash balances and nonperforming assets; lower non-interest income resulting from lower securities gains and reduced non-sufficient funds income due to changes in customer behavior; and an increase in core non-interest expenses due mostly to professional fees relating primarily to higher legal fees. Loan loss and tax certificate provisions, debt redemption costs, loss on real estate sold and impairment, restructuring and exit activity expenses, which are not included in pre-tax core operating earnings, were ($31.6) million for the third quarter of 2010, ($48.9) million for the second quarter of 2010 and ($59.3) million for the third quarter of 2009.
(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, gains/losses on sales of real estate, restructuring and exit activities. A reconciliation of loss from bank operations before income taxes to pre-tax core operating earnings is included in BankAtlantic Bancorp’s Third Quarter, 2010 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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Net Interest Margin— “Net interest income for the third quarter of 2010 was $39.1 million compared to $41.5 million for the third quarter of 2009, with improvements in net interest margin offset by decreases in earning assets, increases in lower-yielding investments and net increases in nonperforming assets.
• | “Net interest margin during the third quarter of 2010 was 3.70%, a 16 basis point improvement from 3.54% during the third quarter of 2009. | ||
• | “Net interest spread during the third quarter of 2010 was 3.54%, a 26 basis point improvement from 3.28% during the third quarter of 2009. | ||
• | “Average balance sheet activity during the third quarter of 2010 impacting net interest income included: |
• | “Average earning assets declined by $448 million since September 30, 2009. | ||
• | “Average invested excess cash of $190.8 million during the third quarter of 2010 earned an average yield of 25 basis points. This compares to $41.5 million in average invested cash during the third quarter of 2009 earning an average yield of approximately 25 basis points. | ||
• | “Average nonperforming assets of $434.6 million at September 30, 2010, an increase of $100.5 million from the third quarter of 2009. |
Non-interest income —“Total non-interest income for the third quarter of 2010 was $27.0 million, down from $35.5 million for the third quarter of 2009. These amounts include a net loss on securities activities of ($0.5) million in the 2010 third quarter and a net gain on securities activities of $4.8 million in the 2009 third quarter. Additionally, these amounts reflect $4.6 million in lower deposit service charges in the 2010 quarter due to declines in customer non-sufficient funds activity, versus the comparable quarter of 2009.
Non-interest expense—“Total non-interest expenses were $60.8 million in the third quarter of 2010 compared to $60.0 million in the third quarter of 2009.
“Core expenses(3) were $52.2 million in the third quarter of 2010, slightly lower than core expenses of $53.0 million in the third quarter of 2009, reflecting a $1.4 million decrease in employee compensation and benefits and a $1.3 million decrease in occupancy and equipment. These expense reductions were partially offset by a $2.2 million increase in professional fees primarily related to legal costs.
(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, gains/losses on sales of real estate, impairments, restructuring and exit activities. A reconciliation of total expense to core expense is included in BankAtlantic Bancorp’s Third Quarter, 2010 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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“Expenses not included in ‘core expenses’ consisted of the following:
• | “Impairment, restructuring and exit chargeswere $8.1 million in the third quarter of 2010, versus $1.7 million in the third quarter of 2009. The charges in the third quarter of 2010 included: |
• | A $4.5 million write-down to fair value of fixed assets related to the Tampa store network associated with the previous announcement in the third quarter of our intention to explore the sale of our Tampa area operations. | ||
• | A $2.1 million severance charge related to a reduction in force during the third quarter of 2010. The anticipated annual expense reduction in compensation and benefits is estimated between $8 million and $10 million. | ||
• | Charges totaling $1.1 million related to write-downs of lease contracts associated with stores held-for-sale. | ||
• | Charges totaling $0.4 million related to write-downs of real estate owned. |
• | “Tax certificate provisionof $0.9 million in the third quarter of 2010, versus a recovery of ($0.2) million in the third quarter of 2009, primarily associated with increased provisions relating to tax certificates held in certain out-of-state markets. | ||
• | “Gain on sale of real estateof $0.4 million in the third quarter of 2010, versus a $0.1 million loss in the third quarter of 2009. | ||
• | “Costs associated with debt redemptionof $0 for the third quarter of 2010, versus $5.4 million in the third quarter of 2009. These costs were associated with the prepayment of certain borrowings as part of our balance sheet de-leveraging efforts during 2009. |
Credit:
• | “BankAtlantic’s allowance for loan losses was $181.8 million at September 30, 2010. The allowance coverage to total loans increased to 5.34% at September 30, 2010 compared to 5.09% at June 30, 2010, and 4.18% at September 30, 2009. | ||
• | “The provision for loan losses in the third quarter of 2010 was $23.0 million compared to $43.6 million in the second quarter of 2010 and $52.2 million in the third quarter of 2009. |
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• | “The provision for loan losses in the third quarter of 2010 by loan portfolios is as follows: Commercial Real Estate- $7.8 million provision; Consumer- $7.0 million provision; Small Business- $4.0 million provision; Residential Real Estate- $3.6 million provision; and Commercial Business- $0.7 million provision. |
• | “Net charge-offs were $21.9 million in the third quarter of 2010, down from $32.5 million in the second quarter of 2010 and $43.1 million in the third quarter of 2009. Third quarter 2010 net charge-offs reflected lower net charge-offs from both comparative quarters in all loan categories with the exception of Small Business where the charge-offs were slightly higher. | ||
• | “Total non-accrual loans were $404.1 million at September 30, 2010, reflecting an increase of $42.0 million, or 11.6%, from $362.1 million at June 30, 2010, and an increase of $109.2 million, or 37.0%, from $294.9 million at September 30, 2009. The increase in non-accrual loans during the third quarter of 2010 as compared to the second quarter of 2010 was largely due to new non-accrual Commercial Real Estate loans determined to be collateral dependent, approximately $59.0 million of which of continued to be current and paying under the terms of their loan agreements. | ||
• | “Total nonperforming assets were $464.9 million at September 30, 2010, as compared to $410.5 million at June 30, 2010, and $328.7 million from September 30, 2009. The increase in the third quarter of 2010 reflects the net increases to non-accrual loans discussed above as well as migration of certain non-accrual loans to real estate owned in the quarter. |
“Other credit information for BankAtlantic’s three largest loan portfolios is further detailed below.
Commercial Real Estate Loans —“Our Commercial Real Estate portfolio was $999 million at September 30, 2010, representing 29.5% of the total loan portfolio.
• | “Net charge-offs in the third quarter of 2010 were $6.0 million, down from $14.1 million in the second quarter of 2010 and $21.5 million in the third quarter of 2009. | ||
• | “Delinquencies, excluding non-accrual loans and loans in the process of renewal, increased to $14.3 million, or 1.4% of total loans, at September 30, 2010, compared to $7.5 million, or 0.7% of total loans, at June 30, 2010, and $12.5 million, or 1.1% of total loans, at September 30, 2009. |
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• | “Commercial Real Estate non-accrual loans at September 30, 2010 were $275.1 million, reflecting a net increase of $45.1 million from June 30, 2010, and an increase of $85.3 million from September 30, 2009. Of the $275.1 million of Commercial Real Estate non-accrual loans at September 30, 2010, approximately $82.4 million were current and paying under terms of their loan agreements at September 30, 2010. | ||
• | “The allowance coverage for Commercial Real Estate loans was 10.04% of the related portfolio at September 30, 2010, compared to 9.42% of the related portfolio at June 30, 2010 and 7.56% at September 30, 2009. |
At September 30, 2010, BankAtlantic’s Commercial Real Estate loan portfolio included the following:
• | “Commercial residential land acquisition, development and construction loans consisting of: |
• | Builder land bank loans:Five loans aggregating $16.0 million, all of which were on non-accrual at September 30, 2010. Charge-offs of $39.9 million have been taken on these non-accrual loans, and $4.5 million in specific reserves are currently maintained related to these loans. | ||
• | Land acquisition and development loans:22 loans aggregating $136.0 million, including 11 loans aggregating $64.8 million on non-accrual at September 30, 2010. Charge-offs of $19.8 million have been taken on these non-accrual loans, and $16.7 million in specific reserves are currently maintained related to these loans. | ||
• | Land acquisition, development and construction loans:4 loans aggregating $4.9 million, with no loans on non-accrual at September 30, 2010. Specific reserves of $0.6 million are currently maintained related to these loans. |
• | “Commercial land loans: 28 loans aggregating $87.5 million, including 8 loans aggregating $52.1 million on non-accrual at September 30, 2010. Charge-offs of $16.9 million have been taken on these non-accrual loans, and $8.2 million in specific reserves are currently maintained related to these loans. |
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• | “All other Commercial Real Estate loans: Consists of $755 million, including 33 loans aggregating $142.2 million on non-accrual at September 30, 2010. Charge-offs of $15.6 million have been taken on these non-accrual loans, and $46.9 million in specific reserves are currently maintained related to these loans. |
Residential Real Estate Loans—“Our Residential Real Estate loan portfolio was $1.3 billion at September 30, 2010, representing 38.7% of the Bank’s total loans. The purchased residential loan portfolio (representing 93.1% of the total residential loan portfolio) consists of approximately 4,560 first mortgage loans secured by properties throughout the United States.
• | “Net charge-offs for the third quarter of 2010 were $4.2 million, compared to net charge-offs of $4.8 million in the second quarter of 2010, and $7.0 million in the third quarter of 2009. | ||
• | “Delinquencies, excluding non-accrual loans, at September 30, 2010 were $17.9 million (down slightly from the June 30, 2010 level of $18.5 million, and a 28% decline from the September 30, 2009 level of $24.9 million), representing 1.37% of the portfolio at September 30, 2010, compared to 1.32% of the portfolio at June 30, 2010, and 1.52% of the portfolio at September 30, 2009. | ||
• | “Residential non-accrual loans at September 30, 2010 were $87.6 million, up from $83.9 million at June 30, 2010 and up from $76.0 million at September 30, 2009. | ||
• | “The allowance coverage for Residential Real Estate loans was 1.68% at September 30, 2010 compared to 1.62% at June 30, 2010, and 1.45% at September 30, 2009. |
Consumer Loans —“Our Consumer Loan portfolio had an outstanding balance of $632.2 million at September 30, 2010. Home equity loans represent 97% of the Consumer Loan portfolio. All of our home equity loans were originated by us in our local markets with central underwriting. BankAtlantic does not have a credit card portfolio.
• | “Net charge-offs in the third quarter of 2010 were $9.6 million, down from $11.6 million in the second quarter of 2010, and $12.3 million in the third quarter of 2009. | ||
• | “Delinquencies, excluding non-accrual loans, decreased to $12.0 million, or 1.90% of the portfolio, at September 30, 2010; compared to $13.2 million, or 2.04% of the portfolio, at June 30, 2010; and compared to $13.7 million, or 1.97% of the portfolio, at September 30, 2009. |
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• | “Consumer non-accrual loans at September 30, 2010 were $13.3 million, down slightly from $13.8 million at June 30, 2010, and up from $11.3 million at September 30, 2009. | ||
• | “The allowance coverage for Consumer loans at September 30, 2010 was 6.08% of the portfolio, compared to 6.37% at June 30, 2010, and 6.02% of the portfolio at September 30, 2009.” |
Capital
“At September 30, 2010, BankAtlantic’s capital ratios were:
• | Total risk-based capital of 12.59%. | ||
• | Tier 1 risk-based capital of 10.59%. | ||
• | Core capital of 7.17%. |
“In addition, as indicated below, BankAtlantic’s capital ratios have been stable over the last four years.
Capital Ratios (BankAtlantic) as of:
12/2006 | 12/2007 | 12/2008 | 12/2009 | 6/2010 | ||||||||||||||||
Core | 7.55 | % | 6.94 | % | 6.80 | % | 7.58 | % | 7.36 | % | ||||||||||
Tier 1 Risk-Based | 10.50 | % | 9.85 | % | 9.80 | % | 10.63 | % | 10.87 | % | ||||||||||
Total Risk-Based | 12.08 | % | 11.63 | % | 11.63 | % | 12.56 | % | 12.86 | % |
BankAtlantic Bancorp (Parent Company level):
Alan B. Levan further commented, “BankAtlantic Bancorp’s net loss at the parent only level was ($7.5) million for the third quarter of 2010, compared to a net loss of ($16.8) million for the third quarter of 2009. The net loss in the third quarter of 2010 included a net provision for loan losses of $1.4 million compared to $11.3 million in the third quarter of 2009.
“As announced in the first quarter of 2009, we continue to defer the regularly scheduled interest payments on the outstanding junior subordinated debentures relating to all of our TruPS, which is permitted under the terms of the securities for up to another 13 consecutive quarterly periods.
“During the third quarter of 2010, BankAtlantic Bancorp announced the previous completion of its rights offering in July 2010, with approximately $20.0 million of proceeds received in connection with the exercise by its shareholders of rights to purchase Class A Common Stock. These proceeds were used to support second quarter 2010 capital contributions of $20 million to BankAtlantic.
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Asset Workout Subsidiary— “During the first quarter of 2008, BankAtlantic 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 is included in BankAtlantic Bancorp’s consolidated results. These assets, as with all other assets and liabilities of BankAtlantic Bancorp, should not be combined with those of BankAtlantic when evaluating and comparing metrics for BankAtlantic as the insured financial institution.
“The loans and real estate owned held by the workout subsidiary totaled $32.6 million with specific loan reserves of $4.2 million at September 30, 2010.
“The composition of the non-accrual loans held by the Company’s asset workout subsidiary at September 30, 2010 was as follows:
• | “Builder land bank loans:One loan totaling $3.9 million for which $16.0 million in charge-offs have been taken. | ||
• | “Land acquisition and development loans:Three loans aggregating $4.6 million. Charge-offs of $7.2 million have been taken on these non-accrual loans, and $0.9 million in specific reserves are currently maintained related to these loans. | ||
• | “Land acquisition, development and construction loans:Five loans aggregating $5.9 million. Charge-offs of $10.3 million have been taken on these non-accrual loans, and $2.9 million in specific reserves are currently maintained related to these loans. | ||
• | “Commercial business loans:One loan totaling $5.5 million, with $0.4 million in specific reserves currently maintained related to this loan. No prior charge-offs have been recorded with respect to this loan.” |
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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.
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Additionally, copies of BankAtlantic Bancorp’s third quarter 2010 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.
About BankAtlantic Bancorp:
BankAtlantic Bancorp (NYSE: BBX) is a bank holding company and the parent company of BankAtlantic.
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 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 and offers extended weekday hours, holiday hours, Free Online Banking & Bill Pay, a 7-Day Customer Service Center, Change Exchange coin counters, as well as retail and business checking accounts.
BankAtlantic, Florida’s Most Convenient Bank, is one of the largest financial institutions headquartered in Florida. Via its broad network of community branches 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 and offers extended weekday hours, holiday hours, Free Online Banking & Bill Pay, a 7-Day Customer Service Center, Change Exchange coin counters, as well as retail and business checking accounts.
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, continued decreases in real estate values, and increased unemployment or sustained high unemployment rates on our business generally, our regulatory capital ratios, the ability of our borrowers to service their obligations and of our customers to maintain account balances and the value of collateral securing our loans; 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, Residential loans and Consumer loans, and conditions specifically in those market sectors; the quality of our Commercial business loans and conditions specifically in that market sector; the risks of additional charge-offs, impairments and required increases in our allowance for loan losses especially if the economy and real estate markets in Florida do not improve; the impact of additional regulation and litigation regarding overdraft fees; additional regulatory requirements or restrictions on our activities which impact our business and prospects; the uncertain impact of legal proceedings on our financial condition or operations, 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; we may not be able to sell our Tampa operations on acceptable terms or at all; our expense reduction initiatives may not be successful and additional cost savings may not be achieved; we may raise additional capital and such capital may be highly dilutive to BankAtlantic Bancorp’s shareholders or may not be available; and the risks associated with the impact of periodic valuation testing of goodwill, deferred tax assets and other assets. Past performance and perceived trends may not indicate 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, 2009. The Company cautions that the foregoing factors are not exclusive. Furthermore, BankAtlantic received the highest numerical score among retail banks in Florida in the proprietary J.D. Power and Associates 2010 Retail Banking Satisfaction StudySM. Study based on 47,673 total responses measuring 9 providers in Florida and measures opinions of consumers with their primary banking provider. Proprietary study results are based on experiences and perceptions of consumers surveyed in January 2010. Your experiences may vary. Visit jdpower.com.
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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 | |||||||||||||||||||||||||||||||
9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | ||||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||||
Net loss from continuing operations | $ | (25,184 | ) | (51,250 | ) | (20,521 | ) | (52,464 | ) | (52,089 | ) | (96,955 | ) | (137,056 | ) | |||||||||||||||||
Net loss | $ | (25,184 | ) | (51,250 | ) | (20,521 | ) | (52,464 | ) | (52,589 | ) | (96,955 | ) | (133,355 | ) | |||||||||||||||||
Net loss attributable to BankAtlantic Bancorp | $ | (25,409 | ) | (51,489 | ) | (20,729 | ) | (52,464 | ) | (52,589 | ) | (97,627 | ) | (133,355 | ) | |||||||||||||||||
Pre-tax core operating earnings — Non-GAAP | (note 1) | $ | 7,871 | 3,927 | 11,103 | 5,379 | 18,530 | 22,901 | 41,434 | |||||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 60,784 | 50,679 | 49,335 | 49,335 | 15,174 | 53,565 | 15,171 | |||||||||||||||||||||||||
Diluted | 60,784 | 50,679 | 49,335 | 49,335 | 15,174 | 53,565 | 15,171 | |||||||||||||||||||||||||
Key Performance Ratios | ||||||||||||||||||||||||||||||||
Diluted loss per share from continuing operations | (note 2) | $ | (0.42 | ) | (1.02 | ) | (0.42 | ) | (1.06 | ) | (3.43 | ) | (1.82 | ) | (9.03 | ) | ||||||||||||||||
Diluted loss per share | (note 2) | $ | (0.42 | ) | (1.02 | ) | (0.42 | ) | (1.06 | ) | (3.47 | ) | (1.82 | ) | (8.79 | ) | ||||||||||||||||
Return on average tangible assets from continuing operations | (note 3) | % | (2.22 | ) | (4.46 | ) | (1.74 | ) | (4.30 | ) | (4.14 | ) | (2.80 | ) | (3.40 | ) | ||||||||||||||||
Return on average tangible equity from continuing operations | (note 3) | % | (138.75 | ) | (193.89 | ) | (64.56 | ) | (110.64 | ) | (132.56 | ) | (127.22 | ) | (95.16 | ) | ||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||||
Assets | $ | 4,548 | 4,616 | 4,744 | 4,894 | 5,046 | 4,635 | 5,388 | ||||||||||||||||||||||||
Tangible assets — Non-GAAP | (note 3) | $ | 4,533 | 4,600 | 4,728 | 4,878 | 5,030 | 4,620 | 5,368 | |||||||||||||||||||||||
Loans, gross | $ | 3,513 | 3,627 | 3,799 | 3,991 | 4,134 | 3,645 | 4,289 | ||||||||||||||||||||||||
Investments | $ | 748 | 648 | 604 | 610 | 617 | 667 | 764 | ||||||||||||||||||||||||
Deposits and escrows | $ | 3,931 | 4,080 | 4,013 | 3,988 | 4,046 | 4,008 | 4,041 | ||||||||||||||||||||||||
Equity | $ | 85 | 118 | 142 | 201 | 166 | 115 | 206 | ||||||||||||||||||||||||
Tangible equity — Non-GAAP | (note 3) | $ | 73 | 106 | 127 | 190 | 157 | 102 | 192 | |||||||||||||||||||||||
Period End ($ in thousands) | ||||||||||||||||||||||||||||||||
Total loans, net | $ | 3,239,542 | 3,387,725 | 3,515,542 | 3,694,326 | 3,845,837 | ||||||||||||||||||||||||||
Total assets | $ | 4,527,736 | 4,655,600 | 4,748,201 | 4,815,617 | 4,941,189 | ||||||||||||||||||||||||||
Total equity | $ | 64,082 | 77,466 | 119,611 | 141,571 | 189,442 | ||||||||||||||||||||||||||
Class A common shares outstanding | 61,595,321 | 52,946,126 | 48,245,042 | 48,245,042 | 48,245,042 | |||||||||||||||||||||||||||
Class B common shares outstanding | 975,225 | 975,225 | 975,225 | 975,225 | 975,225 | |||||||||||||||||||||||||||
Book value per share | $ | 1.02 | 1.44 | 2.43 | 2.88 | 3.85 | ||||||||||||||||||||||||||
Tangible book value per share — Non-GAAP | (note 4) | $ | 0.84 | 1.20 | 2.20 | 2.59 | 3.64 | |||||||||||||||||||||||||
High stock price for the quarter | $ | 1.85 | 3.28 | 3.24 | 2.96 | 6.68 | ||||||||||||||||||||||||||
Low stock price for the quarter | $ | 0.75 | 1.35 | 1.14 | 1.20 | 2.60 | ||||||||||||||||||||||||||
Closing stock price | $ | 0.80 | 1.40 | 1.77 | 1.30 | 2.90 |
Notes: | ||
(1) | Pre-tax core operating earnings excludes provision for loan losses, cost associated with debt redemption, provision for tax certificates, FDIC special assessment, gains/losses on sales of real estate 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 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 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. |
12
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
Consolidated Statements of Financial Condition (unaudited)
September 30, | December 31, | |||||||
(in thousands) | 2010 | 2009 | ||||||
ASSETS | ||||||||
Cash and due from depository institutions | $ | 103,919 | 108,946 | |||||
Interest bearing deposits at federal reserve and other banks | 233,706 | 125,851 | ||||||
Securities available for sale and derivatives (at fair value) | 446,694 | 320,327 | ||||||
Investment securities (approximate fair value: $1,500 and $1,500) | 1,500 | 1,500 | ||||||
Tax certificates, net of allowance of $8,452 and $6,781 | 104,681 | 110,991 | ||||||
Loans receivable, net of allowance for loan losses of $185,947 and $187,218 | 3,239,542 | 3,694,326 | ||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 45,259 | 48,751 | ||||||
Real estate held for development and sale | 6,533 | 13,694 | ||||||
Real estate owned | 67,783 | 46,477 | ||||||
Office properties and equipment, net | 154,427 | 201,686 | ||||||
Goodwill and other intangible assets | 14,877 | 15,817 | ||||||
Assets held for sale | 37,209 | — | ||||||
Other assets | 71,606 | 127,251 | ||||||
Total assets | $ | 4,527,736 | 4,815,617 | |||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | ||||||||
Demand | $ | 809,830 | 827,580 | |||||
Savings | 411,612 | 412,360 | ||||||
NOW | 1,288,792 | 1,409,138 | ||||||
Money market | 386,091 | 360,043 | ||||||
Certificates of deposit | 601,956 | 960,559 | ||||||
Deposits held for sale | 339,360 | — | ||||||
Total deposits | 3,837,641 | 3,969,680 | ||||||
Advances from FHLB | 180,000 | 282,012 | ||||||
Securities sold under agreements to repurchase | 19,138 | 24,468 | ||||||
Federal funds purchased and other short term borrowings | 1,810 | 2,803 | ||||||
Subordinated debentures and bonds payable | 22,000 | 22,697 | ||||||
Junior subordinated debentures | 318,802 | 308,334 | ||||||
Liabilities held for sale | 100 | — | ||||||
Other liabilities | 84,163 | 64,052 | ||||||
Total liabilities | 4,463,654 | 4,674,046 | ||||||
Equity: | ||||||||
Common stock | 626 | 493 | ||||||
Additional paid-in capital | 317,304 | 296,438 | ||||||
Accumulated deficit | (251,061 | ) | (153,434 | ) | ||||
Accumulated other comprehensive loss | (3,207 | ) | (1,926 | ) | ||||
Total BankAtlantic Bancorp stockholders’ equity | 63,662 | 141,571 | ||||||
Noncontrolling interests | 420 | — | ||||||
Total equity | 64,082 | 141,571 | ||||||
Total liabilities and equity | $ | 4,527,736 | 4,815,617 | |||||
13
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) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||
Interest and fees on loans | $ | 38,356 | 39,898 | 41,634 | 43,056 | 45,028 | 119,888 | 142,453 | ||||||||||||||||||||
Interest on securities available for sale | 2,847 | 2,714 | 3,645 | 3,889 | 4,766 | 9,206 | 19,653 | |||||||||||||||||||||
Interest on tax certificates | 2,837 | 514 | 2,356 | 2,975 | 3,793 | 5,707 | 11,047 | |||||||||||||||||||||
Interest and dividends on investments | 367 | 223 | 153 | 136 | 161 | 743 | 384 | |||||||||||||||||||||
Total interest income | 44,407 | 43,349 | 47,788 | 50,056 | 53,748 | 135,544 | 173,537 | |||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Interest on deposits | 4,877 | 6,021 | 7,057 | 7,950 | 9,420 | 17,955 | 33,934 | |||||||||||||||||||||
Interest on advances from FHLB | 106 | 1 | 958 | 1,783 | 2,494 | 1,065 | 14,740 | |||||||||||||||||||||
Interest on short-term borrowed funds | 8 | 7 | 8 | 9 | 9 | 23 | 200 | |||||||||||||||||||||
Interest on long-term debt | 4,107 | 3,891 | 3,791 | 3,824 | 3,973 | 11,789 | 12,791 | |||||||||||||||||||||
Total interest expense | 9,098 | 9,920 | 11,814 | 13,566 | 15,896 | 30,832 | 61,665 | |||||||||||||||||||||
NET INTEREST INCOME | 35,309 | 33,429 | 35,974 | 36,490 | 37,852 | 104,712 | 111,872 | |||||||||||||||||||||
Provision for loan losses | 24,410 | 48,553 | 30,755 | 81,301 | 63,586 | 103,718 | 151,357 | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 10,899 | (15,124 | ) | 5,219 | (44,811 | ) | (25,734 | ) | 994 | (39,485 | ) | |||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||
Service charges on deposits | 15,214 | 15,502 | 15,048 | 17,940 | 19,767 | 45,764 | 57,799 | |||||||||||||||||||||
Other service charges and fees | 7,495 | 7,739 | 7,378 | 7,103 | 7,355 | 22,612 | 22,439 | |||||||||||||||||||||
Securities activities, net | (552 | ) | 312 | 3,138 | 1,273 | 4,774 | 2,898 | 9,907 | ||||||||||||||||||||
Other | 5,204 | 2,970 | 2,900 | 3,267 | 3,711 | 11,074 | 10,093 | |||||||||||||||||||||
Total non-interest income | 27,361 | 26,523 | 28,464 | 29,583 | 35,607 | 82,348 | 100,238 | |||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Employee compensation and benefits | 23,549 | 25,155 | 25,378 | 28,628 | 24,876 | 74,082 | 79,617 | |||||||||||||||||||||
Occupancy and equipment | 13,263 | 13,745 | 13,582 | 14,270 | 14,553 | 40,590 | 44,306 | |||||||||||||||||||||
Advertising and business promotion | 2,026 | 2,239 | 1,944 | 2,286 | 1,549 | 6,209 | 6,360 | |||||||||||||||||||||
Professional fees | 6,209 | 4,824 | 2,887 | 5,138 | 3,470 | 13,920 | 9,491 | |||||||||||||||||||||
Check losses | 763 | 521 | 432 | 1,207 | 1,146 | 1,716 | 2,981 | |||||||||||||||||||||
Supplies and postage | 983 | 921 | 998 | 1,135 | 1,035 | 2,902 | 3,038 | |||||||||||||||||||||
Telecommunication | 702 | 662 | 534 | 844 | 353 | 1,898 | 1,637 | |||||||||||||||||||||
Cost associated with debt redemption | — | 53 | 7 | — | 5,431 | 60 | 7,463 | |||||||||||||||||||||
Provision for tax certificates | 885 | 2,134 | 733 | 686 | (198 | ) | 3,752 | 2,702 | ||||||||||||||||||||
(Gain) loss on sale of real estate | (442 | ) | 1,490 | (104 | ) | (122 | ) | 67 | 944 | (220 | ) | |||||||||||||||||
Impairment, restructuring and exit activities | 8,165 | 2,947 | 143 | 7,700 | 1,730 | 11,255 | 14,757 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | — | — | 2,428 | |||||||||||||||||||||
Other | 7,304 | 7,958 | 7,580 | 7,186 | 7,947 | 22,842 | 23,246 | |||||||||||||||||||||
Total non-interest expense | 63,407 | 62,649 | 54,114 | 68,958 | 61,959 | 180,170 | 197,806 | |||||||||||||||||||||
Loss from continuing operations before income taxes | (25,147 | ) | (51,250 | ) | (20,431 | ) | (84,186 | ) | (52,086 | ) | (96,828 | ) | (137,053 | ) | ||||||||||||||
Provision (benefit) for income taxes | 37 | — | 90 | (31,722 | ) | 3 | 127 | 3 | ||||||||||||||||||||
Loss from continuing operations | (25,184 | ) | (51,250 | ) | (20,521 | ) | (52,464 | ) | (52,089 | ) | (96,955 | ) | (137,056 | ) | ||||||||||||||
Discontinued operations | — | — | — | — | (500 | ) | — | 3,701 | ||||||||||||||||||||
Net loss | (25,184 | ) | (51,250 | ) | (20,521 | ) | (52,464 | ) | (52,589 | ) | (96,955 | ) | (133,355 | ) | ||||||||||||||
Less: net income attributable to noncontrolling interest | (225 | ) | (239 | ) | (208 | ) | — | — | (672 | ) | — | |||||||||||||||||
Net loss attributable to BankAtlantic Bancorp | $ | (25,409 | ) | (51,489 | ) | (20,729 | ) | (52,464 | ) | (52,589 | ) | (97,627 | ) | (133,355 | ) | |||||||||||||
14
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) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
Loans: | ||||||||||||||||||||
Residential real estate | $ | 1,356,748 | 1,433,322 | 1,513,302 | 1,600,027 | 1,698,715 | ||||||||||||||
Commercial real estate | 1,061,918 | 1,079,760 | 1,148,435 | 1,228,250 | 1,262,163 | |||||||||||||||
Consumer | 653,631 | 670,173 | 688,173 | 700,254 | 717,473 | |||||||||||||||
Commercial business | 133,841 | 135,689 | 139,843 | 150,467 | 140,621 | |||||||||||||||
Small business | 306,927 | 308,254 | 309,549 | 312,485 | 314,672 | |||||||||||||||
Total Loans | 3,513,065 | 3,627,198 | 3,799,302 | 3,991,483 | 4,133,644 | |||||||||||||||
Investments | 748,299 | 648,462 | 603,874 | 609,946 | 616,665 | |||||||||||||||
Total interest earning assets | 4,261,364 | 4,275,660 | 4,403,176 | 4,601,429 | 4,750,309 | |||||||||||||||
Goodwill and core deposit intangibles | 15,028 | 15,353 | 15,652 | 15,973 | 16,297 | |||||||||||||||
Other non-interest earning assets | 271,950 | 324,727 | 324,910 | 276,438 | 279,588 | |||||||||||||||
Total assets | $ | 4,548,342 | 4,615,740 | 4,743,738 | 4,893,840 | 5,046,194 | ||||||||||||||
Tangible assets — Non-GAAP (note 3) | $ | 4,533,314 | 4,600,387 | 4,728,086 | 4,877,867 | 5,029,897 | ||||||||||||||
Deposits: | ||||||||||||||||||||
Demand deposits | $ | 907,294 | 916,131 | 864,413 | 844,052 | 808,817 | ||||||||||||||
Savings | 444,981 | 445,686 | 425,235 | 421,032 | 431,516 | |||||||||||||||
NOW | 1,484,558 | 1,525,475 | 1,467,103 | 1,312,073 | 1,237,459 | |||||||||||||||
Money market | 404,406 | 386,712 | 360,470 | 372,081 | 392,344 | |||||||||||||||
Certificates of deposit | 689,664 | 805,656 | 896,074 | 1,038,920 | 1,175,821 | |||||||||||||||
Total deposits | 3,930,903 | 4,079,660 | 4,013,295 | 3,988,158 | 4,045,957 | |||||||||||||||
Short-term borrowed funds | 26,187 | 25,528 | 26,332 | 30,812 | 31,905 | |||||||||||||||
FHLB advances | 106,685 | 1,264 | 173,011 | 282,015 | 410,628 | |||||||||||||||
Long-term debt | 340,230 | 334,507 | 331,403 | 328,222 | 324,729 | |||||||||||||||
Total borrowings | 473,102 | 361,299 | 530,746 | 641,049 | 767,262 | |||||||||||||||
Other liabilities | 59,207 | 57,152 | 57,755 | 63,979 | 66,855 | |||||||||||||||
Total liabilities | 4,463,212 | 4,498,111 | 4,601,796 | 4,693,186 | 4,880,074 | |||||||||||||||
Equity | 85,130 | 117,629 | 141,942 | 200,654 | 166,120 | |||||||||||||||
Total liabilities and equity | $ | 4,548,342 | 4,615,740 | 4,743,738 | 4,893,840 | 5,046,194 | ||||||||||||||
Other comprehensive loss in equity | (2,499 | ) | (3,454 | ) | (846 | ) | (4,999 | ) | (7,356 | ) | ||||||||||
Tangible equity — Non-GAAP (note 3) | $ | 72,601 | 105,730 | 127,136 | 189,680 | 157,179 | ||||||||||||||
Net Interest Margin | 3.32 | % | 3.13 | % | 3.33 | % | 3.26 | % | 3.23 | % | ||||||||||
15
Consolidated BankAtlantic Bancorp, Inc. and Subsidiaries
Nonperforming Assets and Credit Quality Statistics
Nonperforming Assets and Credit Quality Statistics
As of | ||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
BankAtlantic | $ | 404,087 | 362,126 | 301,365 | 286,120 | 294,865 | ||||||||||||||
Parent- Work out Sub | 19,916 | 24,358 | 35,326 | 44,897 | 53,520 | |||||||||||||||
Consolidated nonaccrual loans | $ | 424,003 | 386,484 | 336,691 | 331,017 | 348,385 | ||||||||||||||
Net Charge-offs: | ||||||||||||||||||||
BankAtlantic | $ | (21,887 | ) | (32,547 | ) | (36,074 | ) | (74,910 | ) | (43,092 | ) | |||||||||
Parent- Work out Sub | (4,438 | ) | (5,741 | ) | (4,302 | ) | (3,836 | ) | �� | (8,051 | ) | |||||||||
Consolidated charge-offs | $ | (26,325 | ) | (38,288 | ) | (40,376 | ) | (78,746 | ) | (51,143 | ) | |||||||||
Loan Provision: | ||||||||||||||||||||
BankAtlantic | $ | 23,012 | 43,634 | 32,034 | 82,523 | 52,246 | ||||||||||||||
Parent- Work out Sub | 1,398 | 4,919 | (1,279 | ) | (1,222 | ) | 11,340 | |||||||||||||
Consolidated loan provision | $ | 24,410 | 48,553 | 30,755 | 81,301 | 63,586 | ||||||||||||||
Allowance for Loan Loss: | ||||||||||||||||||||
BankAtlantic | $ | 181,760 | 180,635 | 169,548 | 173,588 | 165,975 | ||||||||||||||
Parent- Work out Sub | 4,187 | 7,227 | 8,049 | 13,630 | 18,688 | |||||||||||||||
Consolidated allowance for loan loss | $ | 185,947 | 187,862 | 177,597 | 187,218 | 184,663 | ||||||||||||||
Nonperforming Assets: | ||||||||||||||||||||
BankAtlantic | $ | 464,865 | 410,542 | 343,693 | 324,226 | 328,685 | ||||||||||||||
Parent- Work out Sub | 29,682 | 34,190 | 45,858 | 55,429 | 59,787 | |||||||||||||||
Consolidated nonperforming assets | $ | 494,547 | 444,732 | 389,551 | 379,655 | 388,472 | ||||||||||||||
Consolidated Credit Quality Statistics | ||||||||||||||||||||
Allowance for loan losses to total loans | % | 5.43 | 5.25 | 4.81 | 4.82 | 4.58 | ||||||||||||||
Allowance to nonaccrual loans | % | 43.86 | 48.61 | 52.75 | 56.56 | 53.01 | ||||||||||||||
Provision to average loans | % | 2.78 | 5.35 | 3.24 | 8.15 | 6.15 | ||||||||||||||
Nonperforming loans, gross to total assets | % | 9.36 | 8.30 | 7.09 | 6.87 | 7.05 | ||||||||||||||
Nonperforming assets, gross to total assets | % | 10.92 | 9.55 | 8.20 | 7.88 | 7.86 |
16
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 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 | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2010 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Loss from continuing operations before income taxes | $ | (25,147 | ) | (51,250 | ) | (20,431 | ) | (84,186 | ) | (52,086 | ) | (96,828 | ) | (137,053 | ) | |||||||||||||
Costs associated with debt redemption | — | 53 | 7 | — | 5,431 | 60 | 7,463 | |||||||||||||||||||||
Provision for tax certificates | 885 | 2,134 | 733 | 686 | (198 | ) | 3,752 | 2,702 | ||||||||||||||||||||
Loss (gain) on sale of real estate | (442 | ) | 1,490 | (104 | ) | (122 | ) | 67 | 944 | (220 | ) | |||||||||||||||||
Impairment, restructuring and exit activities | 8,165 | 2,947 | 143 | 7,700 | 1,730 | 11,255 | 14,757 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | — | — | 2,428 | |||||||||||||||||||||
Provision for loan losses | 24,410 | 48,553 | 30,755 | 81,301 | 63,586 | 103,718 | 151,357 | |||||||||||||||||||||
Non-GAAP pre-tax core operating earnings | $ | 7,871 | 3,927 | 11,103 | 5,379 | 18,530 | 22,901 | 41,434 | ||||||||||||||||||||
Reconciliation of equity to tangible book value per share | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
Equity | $ | 64,082 | 77,466 | 119,611 | 141,571 | 189,442 | ||||||||||||||
Goodwill and core deposit intangibles | (14,877 | ) | (15,186 | ) | (15,494 | ) | (15,817 | ) | (16,139 | ) | ||||||||||
Other comprehensive loss | 3,207 | 2,320 | 4,141 | 1,926 | 5,836 | |||||||||||||||
Tangible book value | $ | 52,412 | 64,600 | 108,258 | 127,680 | 179,139 | ||||||||||||||
Common shares outstanding, period end | 62,570,546 | 53,921,351 | 49,220,267 | 49,220,267 | 49,220,267 | |||||||||||||||
Book value per share | $ | 1.02 | 1.44 | 2.43 | 2.88 | 3.85 | ||||||||||||||
Tangible book value per share — Non-GAAP | $ | 0.84 | 1.20 | 2.20 | 2.59 | 3.64 | ||||||||||||||
Reconciliation of return on average assets and average equity to return on average tangible assets and average tangible equity | ||||||||||||||||||||||||||||
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Net loss from continuing operations | $ | (25,184 | ) | (51,250 | ) | (20,521 | ) | (52,464 | ) | (52,089 | ) | (96,955 | ) | (137,056 | ) | |||||||||||||
Average total assets | 4,548,342 | 4,615,740 | 4,743,738 | 4,893,840 | 5,046,194 | 4,635,217 | 5,387,892 | |||||||||||||||||||||
Average goodwill and core deposit intangibles | (15,028 | ) | (15,353 | ) | (15,652 | ) | (15,973 | ) | (16,297 | ) | (15,342 | ) | (19,593 | ) | ||||||||||||||
Average tangible assets | 4,533,314 | 4,600,387 | 4,728,086 | 4,877,867 | 5,029,897 | 4,619,875 | 5,368,299 | |||||||||||||||||||||
Average equity | 85,130 | 117,629 | 141,942 | 200,654 | 166,120 | 114,685 | 206,483 | |||||||||||||||||||||
Average goodwill and core deposit intangibles | (15,028 | ) | (15,353 | ) | (15,652 | ) | (15,973 | ) | (16,297 | ) | (15,342 | ) | (19,593 | ) | ||||||||||||||
Other comprehensive loss | 2,499 | 3,454 | 846 | 4,999 | 7,356 | 2,272 | 5,151 | |||||||||||||||||||||
Average tangible equity | $ | 72,601 | 105,730 | 127,136 | 189,680 | 157,179 | 101,615 | 192,041 | ||||||||||||||||||||
Return on average assets from continuing operations | -2.21 | % | -4.44 | % | -1.73 | % | -4.29 | % | -4.13 | % | -2.79 | % | -3.39 | % | ||||||||||||||
Return on average tangible assets from continuing operations — Non-GAAP | -2.22 | % | -4.46 | % | -1.74 | % | -4.30 | % | -4.14 | % | -2.80 | % | -3.40 | % | ||||||||||||||
Return on average equity from continuing operations | -118.33 | % | -174.28 | % | -57.83 | % | -104.59 | % | -125.42 | % | -112.72 | % | -88.50 | % | ||||||||||||||
Return on average tangible equity from continuing operations — Non-GAAP | -138.75 | % | -193.89 | % | -64.56 | % | -110.64 | % | -132.56 | % | -127.22 | % | -95.16 | % | ||||||||||||||
17
BankAtlantic (Bank Operations Business Segment)
Summary of Selected Financial Data (unaudited)
Summary of Selected Financial Data (unaudited)
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands except percentages) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Average interest earning assets | $ | 4,234,115 | 4,240,545 | 4,355,771 | 4,545,711 | 4,682,449 | 4,276,245 | 4,974,977 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 3,189,179 | 3,220,458 | 3,383,776 | 3,494,040 | 3,717,691 | 3,263,758 | 4,039,043 | ||||||||||||||||||||
Period end borrowings to deposits and borrowings | % | 5.76 | 4.13 | 4.84 | 8.00 | 9.52 | 5.76 | 9.52 | ||||||||||||||||||||
Efficiency ratio | % | 91.87 | 94.05 | 77.86 | 96.82 | 77.99 | 87.75 | 85.90 | ||||||||||||||||||||
Yield on interest earning assets | % | 4.19 | 4.08 | 4.34 | 4.40 | 4.58 | 4.22 | 4.64 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 0.65 | 0.78 | 0.99 | 1.13 | 1.30 | 0.81 | 1.65 | ||||||||||||||||||||
Interest spread | % | 3.54 | 3.30 | 3.35 | 3.27 | 3.28 | 3.41 | 2.99 | ||||||||||||||||||||
Net interest margin | % | 3.70 | 3.49 | 3.57 | 3.62 | 3.54 | 3.60 | 3.30 | ||||||||||||||||||||
Non-GAAP Measures (Note 1) | ||||||||||||||||||||||||||||
Average tangible assets | $ | 4,489,189 | 4,544,611 | 4,668,854 | 4,819,572 | 4,959,000 | 4,566,803 | 5,284,659 | ||||||||||||||||||||
Average tangible equity | $ | 338,712 | 356,572 | 367,220 | 425,344 | 376,006 | 353,971 | 389,597 | ||||||||||||||||||||
Pre-tax core operating earnings | $ | 13,922 | 9,078 | 15,774 | 10,428 | 23,975 | 38,774 | 58,783 | ||||||||||||||||||||
Core operating efficiency ratio | % | 78.95 | 85.65 | 76.71 | 84.70 | 68.85 | 80.33 | 73.81 | ||||||||||||||||||||
Return on average tangible assets | % | (1.57 | ) | (3.51 | ) | (1.47 | ) | (4.04 | ) | (2.85 | ) | (2.18 | ) | (2.52 | ) | |||||||||||||
Return on average tangible equity | % | (20.87 | ) | (44.73 | ) | (18.66 | ) | (45.74 | ) | (37.56 | ) | (28.13 | ) | (34.25 | ) | |||||||||||||
Tangible capital to tangible assets | % | 7.08 | 7.29 | 7.55 | 7.66 | 8.37 | ||||||||||||||||||||||
Earning assets repricing at period end: | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 45 | 47 | 48 | 48 | 49 | ||||||||||||||||||||||
Percent of earning assets that have variable rates | % | 55 | 53 | 52 | 52 | 51 | ||||||||||||||||||||||
Regulatory capital ratios and statistics at period end | ||||||||||||||||||||||||||||
Total risk-based capital | % | 12.59 | 12.86 | 12.86 | 12.56 | 13.51 | ||||||||||||||||||||||
Tier I risk-based capital | % | 10.59 | 10.87 | 10.90 | 10.63 | 11.60 | ||||||||||||||||||||||
Core capital | % | 7.17 | 7.36 | 7.51 | 7.58 | 8.31 | ||||||||||||||||||||||
Risk-weighted assets | $ | 3,021,862 | 3,104,341 | 3,206,075 | 3,364,662 | 3,470,256 | ||||||||||||||||||||||
Adjusted total assets | $ | 4,459,875 | 4,584,519 | 4,656,270 | 4,720,917 | 4,843,459 |
Note 1
See page 15 for a reconciliation of non-GAAP measures to GAAP financial measures.
18
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) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Net interest income | $ | 39,101 | 37,008 | 39,459 | 39,992 | 41,485 | 115,568 | 123,332 | ||||||||||||||||||||
Provision for loan losses | 23,012 | 43,634 | 32,034 | 82,523 | 52,246 | 98,680 | 131,721 | |||||||||||||||||||||
Net interest income after provision for loan losses | 16,089 | (6,626 | ) | 7,425 | (42,531 | ) | (10,761 | ) | 16,888 | (8,389 | ) | |||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 15,214 | 15,502 | 15,048 | 17,940 | 19,767 | 45,764 | 57,799 | |||||||||||||||||||||
Other service charges and fees | 7,495 | 7,739 | 7,378 | 7,103 | 7,355 | 22,612 | 22,439 | |||||||||||||||||||||
Securities activities, net | (543 | ) | 309 | 3,132 | — | 4,774 | 2,898 | 11,161 | ||||||||||||||||||||
Other non-interest income | 4,869 | 2,721 | 2,699 | 3,116 | 3,596 | 10,289 | 9,734 | |||||||||||||||||||||
Total non-interest income | 27,035 | 26,271 | 28,257 | 28,159 | 35,492 | 81,563 | 101,133 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 22,475 | 24,254 | 24,374 | 26,229 | 23,917 | 71,103 | 76,980 | |||||||||||||||||||||
Occupancy and equipment | 13,263 | 13,745 | 13,581 | 14,269 | 14,553 | 40,589 | 44,305 | |||||||||||||||||||||
Advertising and business promotion | 1,917 | 2,121 | 1,934 | 2,254 | 1,514 | 5,972 | 6,141 | |||||||||||||||||||||
Professional fees | 4,942 | 4,220 | 2,565 | 4,542 | 2,752 | 11,727 | 8,032 | |||||||||||||||||||||
Check losses | 763 | 521 | 432 | 1,207 | 1,146 | 1,716 | 2,981 | |||||||||||||||||||||
Supplies and postage | 929 | 895 | 965 | 1,106 | 987 | 2,789 | 2,978 | |||||||||||||||||||||
Telecommunication | 697 | 655 | 529 | 842 | 348 | 1,881 | 1,622 | |||||||||||||||||||||
Cost associated with debt redemption | — | 53 | 7 | — | 5,431 | 60 | 7,463 | |||||||||||||||||||||
Provision for tax certificates | 885 | 2,134 | 733 | 686 | (198 | ) | 3,752 | 2,702 | ||||||||||||||||||||
(Gain) loss on sale of real estate | (442 | ) | 880 | (104 | ) | (122 | ) | 67 | 334 | (220 | ) | |||||||||||||||||
Impairment, restructuring and exit activities | 8,099 | 2,247 | 143 | 7,700 | 1,730 | 10,489 | 14,757 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | — | — | 2,428 | |||||||||||||||||||||
Other | 7,228 | 7,790 | 7,562 | 7,274 | 7,785 | 22,580 | 22,643 | |||||||||||||||||||||
Total non-interest expense | 60,756 | 59,515 | 52,721 | 65,987 | 60,032 | 172,992 | 192,812 | |||||||||||||||||||||
Loss from bank operations business segment before income taxes | (17,632 | ) | (39,870 | ) | (17,039 | ) | (80,359 | ) | (35,301 | ) | (74,541 | ) | (100,068 | ) | ||||||||||||||
Provision (benefit) for income taxes | 37 | — | 90 | (31,722 | ) | 3 | 127 | 3 | ||||||||||||||||||||
Net loss from bank operations business segment | (17,669 | ) | (39,870 | ) | (17,129 | ) | (48,637 | ) | (35,304 | ) | (74,668 | ) | (100,071 | ) | ||||||||||||||
Less: net income attributable to noncontrolling interest | (225 | ) | (239 | ) | (208 | ) | — | — | (672 | ) | — | |||||||||||||||||
Net loss attributable to BankAtlantic | $ | (17,894 | ) | (40,109 | ) | (17,337 | ) | (48,637 | ) | (35,304 | ) | (75,340 | ) | (100,071 | ) | |||||||||||||
19
BankAtlantic (Bank Operations Business Segment)
Condensed Statements of Financial Condition (unaudited)
Condensed Statements of Financial Condition (unaudited)
As of | ||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 3,220,936 | 3,367,633 | 3,485,228 | 3,659,943 | 3,807,800 | ||||||||||||||
Investment securities and FHLB stock | 150,035 | 189,120 | 137,189 | 159,742 | 187,152 | |||||||||||||||
Available for sale securities | 446,591 | 275,065 | 243,779 | 320,322 | 355,340 | |||||||||||||||
Goodwill | 13,081 | 13,081 | 13,081 | 13,081 | 13,081 | |||||||||||||||
Core deposit intangible asset | 1,796 | 2,105 | 2,413 | 2,736 | 3,058 | |||||||||||||||
Assets held for sale | 37,209 | — | — | — | — | |||||||||||||||
Other assets | 615,828 | 764,278 | 806,311 | 599,298 | 515,954 | |||||||||||||||
Total assets | $ | 4,485,476 | 4,611,282 | 4,688,001 | 4,755,122 | 4,882,385 | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 809,830 | 902,486 | 900,984 | 827,580 | 809,749 | ||||||||||||||
Savings | 411,612 | 442,142 | 443,288 | 412,360 | 425,508 | |||||||||||||||
NOW | 1,288,792 | 1,496,369 | 1,501,274 | 1,409,138 | 1,238,542 | |||||||||||||||
Money market | 386,091 | 397,313 | 361,877 | 360,043 | 372,442 | |||||||||||||||
Certificates of deposit | 601,956 | 749,948 | 840,017 | 960,559 | 1,113,238 | |||||||||||||||
Deposits held for sale | 339,360 | — | — | — | — | |||||||||||||||
Total deposits | 3,837,641 | 3,988,258 | 4,047,440 | 3,969,680 | 3,959,479 | |||||||||||||||
Advances from Federal Home Loan Bank | 180,000 | 115,000 | 152,008 | 282,012 | 342,016 | |||||||||||||||
Short term borrowings | 32,666 | 34,685 | 31,797 | 40,657 | 51,825 | |||||||||||||||
Long term debt | 22,000 | 22,000 | 22,000 | 22,697 | 22,738 | |||||||||||||||
Liabilities held for sale | 100 | — | — | — | — | |||||||||||||||
Other liabilities | 81,452 | 100,904 | 66,574 | 61,175 | 83,085 | |||||||||||||||
Total liabilities | 4,153,859 | 4,260,847 | 4,319,819 | 4,376,221 | 4,459,143 | |||||||||||||||
Equity | 331,617 | 350,435 | 368,182 | 378,901 | 423,242 | |||||||||||||||
Total liabilities and equity | $ | 4,485,476 | 4,611,282 | 4,688,001 | 4,755,122 | 4,882,385 | ||||||||||||||
20
BankAtlantic (Bank Operations Business Segment)
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
( in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,356,748 | 16,340 | 4.82 | % | $ | 1,698,715 | 21,320 | 5.02 | % | ||||||||||||||
Commercial real estate | 1,036,215 | 9,703 | 3.75 | 1,196,418 | 11,566 | 3.87 | ||||||||||||||||||
Consumer | 653,630 | 4,808 | 2.94 | 717,473 | 5,245 | 2.92 | ||||||||||||||||||
Commercial business | 132,306 | 2,573 | 7.78 | 139,085 | 1,833 | 5.27 | ||||||||||||||||||
Small business | 306,927 | 4,875 | 6.35 | 314,672 | 5,004 | 6.36 | ||||||||||||||||||
Total loans | 3,485,826 | 38,299 | 4.39 | 4,066,363 | 44,968 | 4.42 | ||||||||||||||||||
Investments | 748,289 | 6,032 | 3.22 | 616,086 | 8,700 | 5.65 | ||||||||||||||||||
Total interest earning assets | 4,234,115 | 44,331 | 4.19 | % | 4,682,449 | 53,668 | 4.58 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 15,028 | 16,297 | ||||||||||||||||||||||
Other non-interest earning assets | 255,074 | 276,551 | ||||||||||||||||||||||
Total Assets | $ | 4,504,217 | $ | 4,975,297 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 444,981 | 250 | 0.22 | % | $ | 431,516 | 367 | 0.34 | % | ||||||||||||||
NOW | 1,484,558 | 1,441 | 0.39 | 1,237,459 | 1,930 | 0.62 | ||||||||||||||||||
Money market | 404,406 | 551 | 0.54 | 392,344 | 642 | 0.65 | ||||||||||||||||||
Certificates of deposit | 689,664 | 2,635 | 1.52 | 1,175,821 | 6,480 | 2.19 | ||||||||||||||||||
Total interest bearing deposits | 3,023,609 | 4,877 | 0.64 | 3,237,140 | 9,419 | 1.15 | ||||||||||||||||||
Short-term borrowed funds | 36,885 | 12 | 0.13 | 47,186 | 15 | 0.13 | ||||||||||||||||||
Advances from FHLB | 106,685 | 106 | 0.39 | 410,628 | 2,494 | 2.41 | ||||||||||||||||||
Long-term debt | 22,000 | 235 | 4.24 | 22,737 | 255 | 4.45 | ||||||||||||||||||
Total interest bearing liabilities | 3,189,179 | 5,230 | 0.65 | 3,717,691 | 12,183 | 1.30 | ||||||||||||||||||
Demand deposits | 907,272 | 808,802 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 56,525 | 63,870 | ||||||||||||||||||||||
Total Liabilities | 4,152,976 | 4,590,363 | ||||||||||||||||||||||
Equity | 351,241 | 384,934 | ||||||||||||||||||||||
Total liabilities and equity | $ | 4,504,217 | $ | 4,975,297 | ||||||||||||||||||||
Net interest income/ net interest spread | 39,101 | 3.54 | % | 41,485 | 3.28 | % | ||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 4.19 | % | 4.58 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 0.49 | 1.04 | ||||||||||||||||||||||
Net interest margin | 3.70 | % | 3.54 | % | ||||||||||||||||||||
21
BankAtlantic (Bank Operations Business Segment)
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Nine Months Ended | ||||||||||||||||||||||||
September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,433,884 | 53,048 | 4.93 | % | $ | 1,811,487 | 69,736 | 5.13 | % | ||||||||||||||
Commercial real estate | 1,061,298 | 30,821 | 3.87 | 1,214,049 | 35,802 | 3.93 | ||||||||||||||||||
Consumer | 670,532 | 14,537 | 2.89 | 730,846 | 15,946 | 2.91 | ||||||||||||||||||
Commercial business | 134,900 | 6,773 | 6.69 | 141,301 | 5,655 | 5.34 | ||||||||||||||||||
Small business | 308,234 | 14,538 | 6.29 | 317,623 | 15,020 | 6.31 | ||||||||||||||||||
Total loans | 3,608,848 | 119,717 | 4.42 | 4,215,306 | 142,159 | 4.50 | ||||||||||||||||||
Investments | 667,397 | 15,600 | 3.12 | 759,671 | 30,908 | 5.42 | ||||||||||||||||||
Total interest earning assets | 4,276,245 | 135,317 | 4.22 | % | 4,974,977 | 173,067 | 4.64 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 15,342 | 19,593 | ||||||||||||||||||||||
Other non-interest earning assets | 290,558 | 309,682 | ||||||||||||||||||||||
Total Assets | $ | 4,582,145 | $ | 5,304,252 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 438,707 | 855 | 0.26 | % | $ | 441,270 | 1,258 | 0.38 | % | ||||||||||||||
NOW | 1,492,442 | 5,444 | 0.49 | 1,148,733 | 5,155 | 0.60 | ||||||||||||||||||
Money market | 384,024 | 1,810 | 0.63 | 408,656 | 2,089 | 0.68 | ||||||||||||||||||
Certificates of deposit | 796,375 | 9,846 | 1.65 | 1,243,603 | 25,431 | 2.73 | ||||||||||||||||||
Total deposits | 3,111,548 | 17,955 | 0.77 | 3,242,262 | 33,933 | 1.40 | ||||||||||||||||||
Short-term borrowed funds | 36,633 | 35 | 0.13 | 129,487 | 223 | 0.23 | ||||||||||||||||||
Advances from FHLB | 93,410 | 1,065 | 1.52 | 644,516 | 14,740 | 3.06 | ||||||||||||||||||
Long-term debt | 22,167 | 694 | 4.19 | 22,778 | 839 | 4.92 | ||||||||||||||||||
Total interest bearing liabilities | 3,263,758 | 19,749 | 0.81 | 4,039,043 | 49,735 | 1.65 | ||||||||||||||||||
Demand deposits | 896,080 | 798,390 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 55,266 | 62,751 | ||||||||||||||||||||||
Total Liabilities | 4,215,104 | 4,900,184 | ||||||||||||||||||||||
Stockholder’s equity | 367,041 | 404,068 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 4,582,145 | $ | 5,304,252 | ||||||||||||||||||||
Net interest income/net interest spread | 115,568 | 3.41 | % | 123,332 | 2.99 | % | ||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 4.22 | % | 4.64 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 0.62 | 1.34 | ||||||||||||||||||||||
Net interest margin | 3.60 | % | 3.30 | % | ||||||||||||||||||||
22
BankAtlantic (Bank Operations Business Segment)
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 180,635 | 169,548 | 173,588 | 165,975 | 156,821 | 173,588 | 125,572 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (4,619 | ) | (5,233 | ) | (4,181 | ) | (7,579 | ) | (7,174 | ) | (14,033 | ) | (15,685 | ) | ||||||||||||||
Commercial real estate | (5,969 | ) | (14,146 | ) | (21,332 | ) | (58,664 | ) | (21,541 | ) | (41,447 | ) | (37,636 | ) | ||||||||||||||
Commercial business | — | — | — | — | — | — | (516 | ) | ||||||||||||||||||||
Consumer | (9,881 | ) | (11,822 | ) | (10,771 | ) | (8,307 | ) | (12,490 | ) | (32,474 | ) | (31,929 | ) | ||||||||||||||
Small business | (2,402 | ) | (2,225 | ) | (837 | ) | (1,738 | ) | (2,249 | ) | (5,464 | ) | (7,367 | ) | ||||||||||||||
Total charge-offs | (22,871 | ) | (33,426 | ) | (37,121 | ) | (76,288 | ) | (43,454 | ) | (93,418 | ) | (93,133 | ) | ||||||||||||||
Recoveries: | �� | |||||||||||||||||||||||||||
Residential real estate | 383 | 435 | 64 | 96 | 133 | 882 | 816 | |||||||||||||||||||||
Commercial real estate | — | 65 | 62 | 422 | — | 127 | 278 | |||||||||||||||||||||
Commercial business | — | 1 | 658 | 494 | — | 659 | 6 | |||||||||||||||||||||
Consumer | 294 | 254 | 194 | 205 | 157 | 742 | 382 | |||||||||||||||||||||
Small business | 307 | 124 | 69 | 161 | 72 | 500 | 333 | |||||||||||||||||||||
Total recoveries | 984 | 879 | 1,047 | 1,378 | 362 | 2,910 | 1,815 | |||||||||||||||||||||
Net charge-offs | (21,887 | ) | (32,547 | ) | (36,074 | ) | (74,910 | ) | (43,092 | ) | (90,508 | ) | (91,318 | ) | ||||||||||||||
Provision for loan losses | 23,012 | 43,634 | 32,034 | 82,523 | 52,246 | 98,680 | 131,721 | |||||||||||||||||||||
Ending balance | $ | 181,760 | 180,635 | 169,548 | 173,588 | 165,975 | 181,760 | 165,975 | ||||||||||||||||||||
As of | ||||||||||||||||||||||||||||
9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | ||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||||||
Nonaccrual loans | ||||||||||||||||||||||||||||
Commercial real estate | $ | 275,057 | 230,007 | 168,937 | 167,867 | 189,720 | ||||||||||||||||||||||
Consumer | 13,282 | 13,818 | 14,428 | 14,451 | 11,336 | |||||||||||||||||||||||
Small business | 10,995 | 12,248 | 10,971 | 9,338 | 9,693 | |||||||||||||||||||||||
Residential real estate | 87,563 | 83,894 | 88,262 | 76,401 | 76,022 | |||||||||||||||||||||||
Commercial business | 17,190 | 22,159 | 18,767 | 18,063 | 8,094 | |||||||||||||||||||||||
Total Nonaccrual loans | 404,087 | 362,126 | 301,365 | 286,120 | 294,865 | |||||||||||||||||||||||
Nonaccrual tax certificates | 2,761 | 2,836 | 1,495 | 2,161 | 3,011 | |||||||||||||||||||||||
Real estate owned | 58,017 | 45,492 | 40,833 | 35,935 | 30,796 | |||||||||||||||||||||||
Other repossessed assets | — | 88 | — | 10 | 13 | |||||||||||||||||||||||
Total nonperforming assets | $ | 464,865 | 410,542 | 343,693 | 324,226 | 328,685 | ||||||||||||||||||||||
Allowance for loan losses to total loans | % | 5.34 | 5.09 | 4.64 | 4.53 | 4.18 | ||||||||||||||||||||||
Allowance to nonaccrual loans | % | 44.98 | 49.88 | 56.26 | 60.67 | 56.29 | ||||||||||||||||||||||
Provision to average loans | % | 2.64 | 4.86 | 3.42 | 8.39 | 5.14 | ||||||||||||||||||||||
Annualized net charge-offs to average loans | % | 2.51 | 3.62 | 3.85 | 7.61 | 4.24 | ||||||||||||||||||||||
Nonperforming loans to total assets | % | 9.01 | 7.85 | 6.43 | 6.02 | 6.04 | ||||||||||||||||||||||
Nonperforming assets to total assets | % | 10.36 | 8.90 | 7.33 | 6.82 | 6.73 |
23
BankAtlantic (Bank Operations Business Segment)
Delinquencies, Excluding Non-Accrual Loans, at Period-End
Delinquencies, Excluding Non-Accrual Loans, at Period-End
($ in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
Commercial real estate | $ | 14,317 | 7,537 | 40,642 | 25,489 | 12,500 | ||||||||||||||
Consumer | 12,004 | 13,181 | 14,858 | 15,173 | 13,678 | |||||||||||||||
Small business | 2,927 | 4,182 | 3,891 | 2,714 | 3,900 | |||||||||||||||
Residential real estate | 17,946 | 18,472 | 26,893 | 26,710 | 24,877 | |||||||||||||||
Commercial business | — | — | 1,129 | 2,820 | 4,863 | |||||||||||||||
Total BankAtlantic | $ | 47,194 | 43,372 | 87,413 | 72,906 | 59,818 | ||||||||||||||
9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | ||||||||||||||||
Commercial real estate | % | 1.43 | * | 0.72 | * | 3.85 | * | 2.28 | * | 1.07 | * | |||||||||
Consumer | % | 1.90 | 2.04 | 2.23 | 2.23 | 1.97 | ||||||||||||||
Small business | % | 0.96 | 1.35 | 1.26 | 0.87 | 1.25 | ||||||||||||||
Residential real estate | % | 1.37 | ** | 1.32 | ** | 1.83 | ** | 1.72 | ** | 1.52 | ** | |||||||||
Commercial business | % | — | — | 0.84 | 1.80 | 3.27 | ||||||||||||||
Total BankAtlantic | % | 1.39 | 1.23 | 2.40 | 1.91 | 1.51 | ||||||||||||||
* | Excludes$12.0 million, $1.2 million, $0, $8.7 million and $0 million of Commercial Real Estate loans at September 30, June 30, 2010, March 31, 2010, December 31,2009, and September 30, 2009, 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 2.63%, .83%, and 3.07% and total BankAtlantic delinquencies would have been 1.75%, 1.26% and 2.14% at September 30, 2010, June 30, 2010 and December 31, 2009, respectively. | |
** | Includes $1.2 billion, $1.3 billion, $1.4 billion, $1.5 billion and $1.6 billion of purchased residential loans with delinquencies excluding non-accrual loans of 1.19%, 1.09%, 1.63%, 1.59% and 1.44% as of September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively. |
BankAtlantic (Bank Operations Business Segment)
Loan Provision & Allowance for Loan Losses
Loan Provision & Allowance for Loan Losses
Allowance | % of Reserves | ||||||||||||
3Q 2010 | for Loan | to Total | |||||||||||
($ in thousands) | Loan Provision | Losses | Loans | ||||||||||
Commercial real estate | $ | 7,756 | 100,331 | 10.04 | % | ||||||||
Consumer | 6,957 | 38,428 | 6.08 | ||||||||||
Small business | 4,023 | 10,921 | 3.57 | ||||||||||
Residential real estate | 3,578 | 21,970 | 1.68 | ||||||||||
Commercial business | 698 | 10,110 | 7.33 | ||||||||||
Total BankAtlantic | $ | 23,012 | 181,760 | 5.34 | % | ||||||||
24
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 not currently controllable by management. Management uses core expenses to measure expense reduction trends excluding items 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 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 | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2009 | 12/21/2003 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Loss from bank operations business segment before income taxes | $ | (17,632 | ) | (39,870 | ) | (17,039 | ) | (80,359 | ) | (35,301 | ) | (74,541 | ) | (100,068 | ) | |||||||||||||
Costs associated with debt redemption | — | 53 | 7 | — | 5,431 | 60 | 7,463 | |||||||||||||||||||||
Provision for tax certificates | 885 | 2,134 | 733 | 686 | (198 | ) | 3,752 | 2,702 | ||||||||||||||||||||
Loss (gain) on sale of real estate | (442 | ) | 880 | (104 | ) | (122 | ) | 67 | 334 | (220 | ) | |||||||||||||||||
Impairment, restructuring and exit activities | 8,099 | 2,247 | 143 | 7,700 | 1,730 | 10,489 | 14,757 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | — | — | 2,428 | |||||||||||||||||||||
Provision for loan losses | 23,012 | 43,634 | 32,034 | 82,523 | 52,246 | 98,680 | 131,721 | |||||||||||||||||||||
Non-GAAP pre-tax core operating earnings | $ | 13,922 | 9,078 | 15,774 | 10,428 | 23,975 | 38,774 | 58,783 | ||||||||||||||||||||
Reconciliation of non-interest expense to core expenses and calculation of core operating efficiency ratio
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
($ in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Non-interest expense | $ | 60,756 | 59,515 | 52,721 | 65,987 | 60,032 | 172,992 | 192,812 | ||||||||||||||||||||
Costs associated with debt redemption | — | (53 | ) | (7 | ) | — | (5,431 | ) | (60 | ) | (7,463 | ) | ||||||||||||||||
Provision for tax certificates | (885 | ) | (2,134 | ) | (733 | ) | (686 | ) | 198 | (3,752 | ) | (2,702 | ) | |||||||||||||||
Gain (loss) on sale of real estate | 442 | (880 | ) | 104 | 122 | (67 | ) | (334 | ) | 220 | ||||||||||||||||||
Impairment, restructuring and exit activities | (8,099 | ) | (2,247 | ) | (143 | ) | (7,700 | ) | (1,730 | ) | (10,489 | ) | (14,757 | ) | ||||||||||||||
FDIC special assessment | — | — | — | — | — | — | (2,428 | ) | ||||||||||||||||||||
Core expenses | $ | 52,214 | 54,201 | 51,942 | 57,723 | 53,002 | 158,357 | 165,682 | ||||||||||||||||||||
Net interest income | 39,101 | 37,008 | 39,459 | 39,992 | 41,485 | 115,568 | 123,332 | |||||||||||||||||||||
Non-interest income | 27,035 | 26,271 | 28,257 | 28,159 | 35,492 | 81,563 | 101,133 | |||||||||||||||||||||
Total revenues | $ | 66,136 | 63,279 | 67,716 | 68,151 | 76,977 | 197,131 | 224,465 | ||||||||||||||||||||
Non-GAAP core operating efficiency ratio | 78.95 | % | 85.65 | % | 76.71 | % | 84.70 | % | 68.85 | % | 80.33 | % | 73.81 | % | ||||||||||||||
Reconciliation of return on average assets and average equity to return on average tangible assets and average tangible equity
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
($ in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Net loss from bank operations business segment | $ | (17,669 | ) | (39,870 | ) | (17,129 | ) | (48,637 | ) | (35,304 | ) | (74,668 | ) | (100,071 | ) | |||||||||||||
Average total assets | 4,504,217 | 4,559,964 | 4,684,506 | 4,835,545 | 4,975,297 | 4,582,145 | 5,304,252 | |||||||||||||||||||||
Average goodwill and core deposit intangibles | (15,028 | ) | (15,353 | ) | (15,652 | ) | (15,973 | ) | (16,297 | ) | (15,342 | ) | (19,593 | ) | ||||||||||||||
Average tangible assets | 4,489,189 | 4,544,611 | 4,668,854 | 4,819,572 | 4,959,000 | 4,566,803 | 5,284,659 | |||||||||||||||||||||
Average equity | 351,241 | 368,472 | 382,027 | 436,322 | 384,934 | 367,041 | 404,068 | |||||||||||||||||||||
Average goodwill and core deposit intangibles | (15,028 | ) | (15,353 | ) | (15,652 | ) | (15,973 | ) | (16,297 | ) | (15,342 | ) | (19,593 | ) | ||||||||||||||
Other comprehensive loss | 2,499 | 3,453 | 845 | 4,995 | 7,369 | 2,271 | 5,122 | |||||||||||||||||||||
Average tangible equity | $ | 338,712 | 356,572 | 367,220 | 425,344 | 376,006 | 353,970 | 389,597 | ||||||||||||||||||||
Return on average assets from continuing operations | -1.57 | % | -3.50 | % | -1.46 | % | -4.02 | % | -2.84 | % | -2.17 | % | -2.52 | % | ||||||||||||||
Return on average tangible assets from continuing operations — Non-GAAP | -1.57 | % | -3.51 | % | -1.47 | % | -4.04 | % | -2.85 | % | -2.18 | % | -2.52 | % | ||||||||||||||
Return on average equity from continuing operations | -20.12 | % | -43.28 | % | -17.93 | % | -44.59 | % | -36.69 | % | -27.12 | % | -33.02 | % | ||||||||||||||
Return on average tangible equity from continuing operations — Non-GAAP | -20.87 | % | -44.73 | % | -18.66 | % | -45.74 | % | -37.56 | % | -28.13 | % | -34.25 | % | ||||||||||||||
Reconciliation of equity to total tangible capital; Total assets to total tangible assets; The calculation of tangible capital to tangible assets
For the Three Months Ended | ||||||||||||||||||||
($ in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
Equity | $ | 331,617 | 350,435 | 368,182 | 378,901 | 423,242 | ||||||||||||||
Goodwill and core deposit intangibles | (14,877 | ) | (15,186 | ) | (15,494 | ) | (15,817 | ) | (16,139 | ) | ||||||||||
Total tangible capital | 316,740 | 335,249 | 352,688 | 363,084 | 407,103 | |||||||||||||||
Total assets | 4,485,476 | 4,611,282 | 4,688,001 | 4,755,122 | 4,882,385 | |||||||||||||||
Goodwill and core deposit intangibles | (14,877 | ) | (15,186 | ) | (15,494 | ) | (15,817 | ) | (16,139 | ) | ||||||||||
Total tangible assets | $ | 4,470,599 | $ | 4,596,096 | $ | 4,672,507 | $ | 4,739,305 | $ | 4,866,246 | ||||||||||
Non-GAAP tangible capital to tangible assets | 7.08 | % | 7.29 | % | 7.55 | % | 7.66 | % | 8.37 | % | ||||||||||
Reconciliation of total deposits to core deposits
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
Total deposits | $ | 3,837,641 | 3,988,258 | 4,047,440 | 3,969,680 | 3,959,479 | ||||||||||||||
Non-core deposits held for sale | (78,088 | ) | — | — | — | — | ||||||||||||||
Money market | (386,091 | ) | (397,313 | ) | (361,877 | ) | (360,043 | ) | (372,442 | ) | ||||||||||
Certificates of deposit | (601,956 | ) | (749,948 | ) | (840,017 | ) | (960,559 | ) | (1,113,238 | ) | ||||||||||
Core deposits | 2,771,506 | 2,840,997 | 2,845,546 | 2,649,078 | 2,473,799 | |||||||||||||||
25
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) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Net interest expense | $ | (3,792 | ) | (3,579 | ) | (3,485 | ) | (3,501 | ) | (3,633 | ) | (10,856 | ) | (11,461 | ) | |||||||||||||
Provsion (recovery) for loan losses | 1,398 | 4,919 | (1,279 | ) | (1,222 | ) | 11,340 | 5,038 | 19,636 | |||||||||||||||||||
Net interest income after provision forloan losses | (5,190 | ) | (8,498 | ) | (2,206 | ) | (2,279 | ) | (14,973 | ) | (15,894 | ) | (31,097 | ) | ||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 293 | 237 | 189 | 145 | 109 | 719 | 342 | |||||||||||||||||||||
Securities activities, net | (9 | ) | 3 | 6 | 1,274 | — | — | (1,255 | ) | |||||||||||||||||||
Other | 292 | 271 | 263 | 294 | 255 | 826 | 764 | |||||||||||||||||||||
Non-interest income | 576 | 511 | 458 | 1,713 | 364 | 1,545 | (149 | ) | ||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 1,074 | 901 | 1,004 | 2,399 | 959 | 2,979 | 2,637 | |||||||||||||||||||||
Advertising and business promotion | 109 | 118 | 10 | 31 | 35 | 237 | 220 | |||||||||||||||||||||
Professional fees | 1,267 | 604 | 322 | 596 | 718 | 2,193 | 1,459 | |||||||||||||||||||||
Loss on sale of real estate | — | 610 | — | — | — | 610 | — | |||||||||||||||||||||
Impairment of real estate owned | 66 | 700 | — | — | — | 766 | — | |||||||||||||||||||||
Other | 385 | 460 | 308 | 235 | 464 | 1,153 | 1,423 | |||||||||||||||||||||
Non-interest expense | 2,901 | 3,393 | 1,644 | 3,261 | 2,176 | 7,938 | 5,739 | |||||||||||||||||||||
Loss from parent company activities before income taxes | (7,515 | ) | (11,380 | ) | (3,392 | ) | (3,827 | ) | (16,785 | ) | (22,287 | ) | (36,985 | ) | ||||||||||||||
Provision (benefit) for income taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Net loss from parent company business segment | $ | (7,515 | ) | (11,380 | ) | (3,392 | ) | (3,827 | ) | (16,785 | ) | (22,287 | ) | (36,985 | ) | |||||||||||||
Parent Company Business Segment
Condensed Statements of Financial Condition — Unaudited
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 12,240 | 8,395 | 5,135 | 14,002 | 16,105 | ||||||||||||||
Securities | 1,508 | 1,508 | 1,506 | 1,505 | 2,207 | |||||||||||||||
Investment in subsidiaries | 359,368 | 379,776 | 413,759 | 423,529 | 466,671 | |||||||||||||||
Investment in unconsolidated subsidiaries | 10,027 | 9,733 | 9,496 | 9,307 | 9,161 | |||||||||||||||
Other assets | 1,635 | 2,430 | 2,329 | 4,017 | 2,630 | |||||||||||||||
Total assets | $ | 384,778 | 401,842 | 432,225 | 452,360 | 496,774 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 318,802 | 315,160 | 311,707 | 308,334 | 304,944 | ||||||||||||||
Other liabilities | 2,314 | 9,632 | 1,288 | 2,455 | 2,388 | |||||||||||||||
Total liabilities | 321,116 | 324,792 | 312,995 | 310,789 | 307,332 | |||||||||||||||
Stockholders’ equity | 63,662 | 77,050 | 119,230 | 141,571 | 189,442 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 384,778 | 401,842 | 432,225 | 452,360 | 496,774 | ||||||||||||||
Parent Company Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
Parent Company and Work-out Subsidiary | For the Nine | |||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 7,227 | 8,049 | 13,630 | 18,688 | 15,399 | 13,630 | 11,685 | ||||||||||||||||||||
Net charge-offs | (4,438 | ) | (5,741 | ) | (4,302 | ) | (3,836 | ) | (8,051 | ) | (14,481 | ) | (12,633 | ) | ||||||||||||||
Provision (recovery) for loan losses | 1,398 | 4,919 | (1,279 | ) | (1,222 | ) | 11,340 | 5,038 | 19,636 | |||||||||||||||||||
Ending balance | $ | 4,187 | 7,227 | 8,049 | 13,630 | 18,688 | 4,187 | 18,688 | ||||||||||||||||||||
As of | ||||||||||||||||||||
9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Total Loans — gross | $ | 22,793 | 27,319 | 38,363 | 48,012 | 56,783 | ||||||||||||||
Nonaccrual loans | $ | 19,916 | 24,358 | 35,326 | 44,897 | 53,520 | ||||||||||||||
Specific reserves | (4,187 | ) | (7,227 | ) | (8,049 | ) | (13,630 | ) | (18,680 | ) | ||||||||||
Nonaccrual loans, net | $ | 15,729 | 17,131 | 27,277 | 31,267 | 34,840 | ||||||||||||||
Real estate owned | 9,766 | 9,832 | 10,532 | 10,532 | 6,267 | |||||||||||||||
Total nonperforming assets | $ | 25,495 | 26,963 | 37,809 | 41,799 | 41,107 | ||||||||||||||
26