BankAtlantic Bancorp Reports Earnings
For The First Quarter 2004
Income from Continuing Operations Increased 54%
Earnings per Share Increased 53%
FORT LAUDERDALE, Florida – April 19, 2004 — BankAtlantic Bancorp, Inc. (NYSE: BBX) — today reported net income from continuing operations increased 54% to $16.6 million, or $0.26 per diluted share, for the first quarter of 2004, up from $10.8 million, or $0.17 per diluted share, earned from continuing operations in the corresponding period in 2003. Excluding the effect of a large gain recognized in connection with a litigation settlement and the costs associated with a decision to prepay certain high cost debt, net income from continuing operations would have been $13.4 million vs. $10.8 million, an increase of 24%.
Chairman of the Board and Chief Executive Officer Alan B. Levan commented, “The first quarter of 2004 was an outstanding quarter for BankAtlantic Bancorp and gives us an excellent start for the new year. Growth in low cost deposits at BankAtlantic continued at the very high levels we have experienced since the inception of our ‘Florida’s Most Convenient Bank’ program. Credit quality remained strong. We are particularly pleased that our interest margin continued to improve. Also, Ryan Beck & Co. had an outstanding quarter, with record income for the quarter, and a strong backlog. Results from all of its major business units were quite favorable.”
Additional accomplishments and highlights include:
BankAtlantic:
“BankAtlantic’s ‘Florida’s Most Convenient Bank’initiatives, including seven-day banking, extended weekday hours, 24/7 call center service, Totally Free Checking, free online banking, Totally Free Change Exchange coin counters, and dozens of additional products and services, continue to attract new customers and generate new checking and savings account openings at record rates. Since January 2002, BankAtlantic has opened nearly 290,000 new checking and savings accounts including more than 45,000 in the first quarter of 2004. The first quarter of 2004 marks the ninth consecutive quarter of double-digit growth in new low cost checking and savings account openings. As shown in the table
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below, balances in low cost deposits increased 36% on a ‘same branch basis’ in the first quarter of 2004, over the first quarter of 2003, to a total of $1.55 billion at quarter-end. At December 31, 2001, immediately preceding the initiation of this program, BankAtlantic had $602 million in low cost deposits. Non-interest bearing demand deposits now constitute 24% of deposit funding, up from 18% a year ago, and 13% before initiation of the program.
The following table presents comparative data for new account balances:
DEC | MAR | JUN | SEP | DEC | MAR | JUN | SEP | DEC | MAR | |||||||||||||||||||||||||||||||
'01 | '02 | '02 | '02 | '02 | '03 | '03 | '03 | '03 | '04 | |||||||||||||||||||||||||||||||
Demand Deposits % of Total Deposits | 13 | % | 13 | % | 14 | % | 14 | % | 16 | % | 18 | % | 19 | % | 20 | % | 21 | % | 24 | % | ||||||||||||||||||||
Low Cost Deposits* % of Total Deposits | 26 | % | 29 | % | 30 | % | 32 | % | 35 | % | 40 | % | 41 | % | 43 | % | 45 | % | 49 | % | ||||||||||||||||||||
Low Cost Deposit Growth* “Same Branch” Year-over-Year Change** | 15 | % | 23 | % | 30 | % | 30 | % | 31 | % | 33 | % | 36 | % | 34 | % | 36 | % | ||||||||||||||||||||||
Effective rate, Low Cost Deposits* | 0.38 | % | 0.49 | % | 0.45 | % | 0.35 | % | 0.33 | % | 0.28 | % | 0.18 | % | 0.18 | % | 0.18 | % |
*DDA and NOW Checking plus Savings comprise Low Cost Deposits | ||
**Includes Branches open for 2 years or more |
“We continue to be excited with the results of our major re-branding of BankAtlantic. Our new customers bring a new vitality to our organization, and significantly add to our franchise value. They also provide us with a growing opportunity to cross promote additional bank products and services. Furthermore, our increased level of low cost deposits positions BankAtlantic to benefit in a higher interest rate environment.
“BankAtlantic’s loan portfolio quality remained strong.During the first quarter, the Bank experienced net recoveries on loans of $647,000, continuing our pattern of low net loan losses over the past several quarters. The ratio of non-performing assets to total loans and other assets was 0.34% at March 31, 2004 vs. 0.33% at December 31, 2003. Non-performing loans represented 0.29% of total loans at March 31, 2004, vs. 0.25% at December 31, 2003. The allowance for loan and lease losses to total loans and leases at March 31, 2004 was 1.22%, representing 415% of non-performing loans and 345% of all non-performing assets. This continued strong loan quality, coupled with the continuing run-off of the discontinued loan product lines, resulted in a $859,000 credit to the provision for loan losses during the first quarter of 2004.
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“The net interest margin at BankAtlantic improved to 3.73% in the first quarter of 2004, from 3.39% in the fourth quarter of 2003.Growth in low cost deposits, a slowing in prepayments of mortgages and our prepayments of certain FHLB advances have resulted in an improvement in our net interest margin. While further progress on this front will depend to a large degree on the pattern and level of interest rates, this increase represents a major improvement in BankAtlantic’s earning power, and validates our move to broaden our customer base and emphasize community banking as one of our core foundations.
“On March 30th, BankAtlantic announced the promotion of Lloyd DeVaux to the newly created position of Chief Operating Officer.Mr. DeVaux had previously been Executive Vice President and Chief Information Officer. He will continue to work closely with the rest of the executive team on leading implementation of the bank’s strategic objectives, and will assume additional responsibilities for many other bank-wide functions including expense management, strategic planning, talent management, and will also assume a greater role in dealing with the institutional investor community.
“During the quarter, BankAtlantic prepaid approximately $108 million of Federal Home Loan Bank advances.These FHLB advances had an average effective rate of 5.5% per annum and were scheduled to mature in 2007 – 2008. After giving effect to the prepayments, the remaining Federal Home Loan Bank advances consist of approximately $591 million of fixed rate advances, most of which are scheduled to mature between 2008 – 2011, with an average effective rate of approximately 4.98%. In conjunction with the prepayments, we recorded an after-tax charge of $7.6 million.
“Yeah, We’re Open.’ BankAtlantic has succeeded in firmly establishing our brand as that of the most convenient bank in our market. Toward that end, during the quarter we launched BankAtlantic’s new advertising campaign —“Yeah, We’re Open”emphasizing our ‘Florida’s Most Convenient Bank’ initiative. With three simple words, ‘Yeah, We’re Open,’ we have encompassed a strategy totally unique to BankAtlantic.
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Ryan Beck & Co.:
“Ryan Beck & Co. had record operating revenues of $65.9 million and net income of $5.1 million for the 3 month period ending March 31, 2004.Growth in operating revenues for the first quarter of 2004 grew 19% vs. the comparable 2003 period. Net income from continuing operations increased 183% vs. the comparable 2003 period. Return on equity grew to 26.4% vs. an 11.1% return on average equity in the first quarter of 2003.
“Each of the firm’s major business units had strong results.The Private Client Group revenues for the first quarter 2004 rose 31% to $45.0 million vs. $34.3 million in the comparable 2003 period. Investment Banking revenues for the quarter grew to $12.3 million vs. $11.4 million in the comparable 2003 period. During the first quarter, the Financial Institutions Investment Banking Group announced five mergers with a value of $2.34 billion. Further, the Middle Market Group completed the IPO for Bakers Footwear Group, Inc. (BKRS). This initial public offering was one of the best performing IPO’s for the quarter among domestic transactions. Additionally, in early April 2004, Ryan Beck closed certain major investment banking transactions, which resulted in revenue in excess of all investment banking revenue realized by Ryan Beck in the first quarter of this year. The impact of those transactions will be reflected in the second quarter of 2004.
“Rick Martin joined the firm as Managing Director and Director of Research.He brings 20 years of research experience within the financial services industry. Prior to joining the firm, Mr. Martin served as the Director of Research at Tucker Anthony Sutro Capital Markets, Advest, SBC Warburg and The Chicago Corporation.
BankAtlantic Bancorp:
“During the first quarter, BankAtlantic Bancorp announced that it had settled litigation between the Company and certain of its affiliates related to an investment in a technology company. Pursuant to the settlement, the Company sold its stock in the technology company to a third party investor group for $15 million in cash, its original cost, and received additional compensation for legal expenses and damages consisting of $1.7 million in cash and the return of 378,000 shares of the Company’s Class A Common Stock owned by the technology company. The parties also exchanged releases and the pending litigation between the parties will be dismissed in connection with the settlement. As a result of the settlement, the Company has no further interest in the technology company. The investment had
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previously been charged off, so the effect of this settlement was to increase net income for the quarter by $10.9 million, net of tax. In addition, the shares of BankAtlantic Bancorp received in connection with the settlement were retired, which will reduce shares outstanding by approximately 0.6%.
Financial Highlights:
First Quarter, 2004 Compared to First Quarter, 2003
BankAtlantic Bancorp — consolidated (adjusted for the Levitt Corporation spin-off):
• | Net income from continuing operations was $16.6 million vs. $10.8 million. Excluding the effect of a recent litigation settlement and costs associated with the early redemption of debt, net income from continuing operations would have been $13.4 million vs. $10.8 million, an increase of 24%. |
• | Return from continuing operations on tangible equity was 20.26% vs. 11.31%. Excluding the non-recurring items, the return on tangible equity was 16.27% for the current period. |
• | Book value per share, adjusted for the Levitt spin-off, rose to $7.26. |
BankAtlantic:
• | Business segment net income of $3.3 million vs. $11.4 million. The 2003 quarter includes a $7.6 million after-tax expense related to the prepayment of Federal Home Loan Bank (FHLB) advances. |
• | Return on average tangible assets was 0.30% vs. 0.93%. Excluding the FHLB advances repayment charge, the return on tangible assets was 0.98% for the current period. |
• | Return on tangible equity was 3.19% vs. 12.08%. Excluding the FHLB prepayment charge, the return on tangible equity was 10.53% for the current period. |
• | Net interest margin increased to 3.73% from 3.35% in the first quarter, 2003, and from 3.39% in the fourth quarter, 2003. |
• | Non-interest income was $18.2 million vs. $15.1 million, an increase of 21%. |
• | Non-interest expense grew to $54.1 million vs. $36.3 million. Included in the current period is an $11.7 million pre-tax expense associated with the prepayment of the FHLB advances. Excluding the prepayment costs, expenses increased 17%. |
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Ryan Beck & Co.:
• | Business segment net income from continuing operations increased to $5.1 million vs. $1.8 million, representing a 183% increase over the first quarter of 2003. |
• | Return on equity from continuing operations was 26.40% vs. 10.62%. |
• | Pretax margin increased to 13% for the quarter, up from 6% in the March 31, 2003 quarter. |
• | Total assets in client accounts were $18.5 billion as of March 31, 2004, excluding certain annuities and mutual funds. |
• | Active accounts totaled 178,000 at March 31, 2004, with client money market balances of approximately $1.2 billion. |
• | Customer margin debit balances exceeded $231 million at March 31, 2004. * * * |
BankAtlantic Bancorp’s First Quarter 2004 earnings results press release, financial summary, press release graphs, and the Supplemental Financials (extensive business segment financial data), are available on BankAtlantic Bancorp’s website: www.BankAtlanticBancorp.com.
• | To view this press release online, access the “Press Room.” |
• | To view the financial summary, access the “Investor Relations” section and click on the “Quarterly Financials” navigation link. |
• | To view the accompanying press release graphs, click 1Q2004Graphs, or access the “Investor Relations” section and click on the “Quarterly Financials” navigation link. |
• | To view the Supplemental Financials, access the “Investor Relations” section and click on the “Supplemental Financials” navigation link. The Supplemental Financials include segment information. Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. The information provided for segment reporting is based on internal reports utilized by management. |
Copies of BankAtlantic Bancorp’s First Quarter 2004 earnings results press release and financial summary, press release graphs, and the Supplemental Financials are also available upon request via fax, email, or postal service, by contacting BankAtlantic Bancorp’s Investor Relations department using the contact information listed below.
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BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Tuesday, April 20, 2004 at 11:00 a.m. (Eastern Time).
Teleconference Call:
To access the teleconference call in the U.S. and Canada, the toll free number to call is 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number6681905.
A replay of the teleconference callwill be available beginning two hours after the call’s completion through 5:00 p.m., Thursday, May 20, 2004. To access the replay option in the U.S. and Canada, the toll free number to call is 1-800-642-1687. International calls for the replay may be placed at 706-645-9291. The replay digital PIN number for both domestic and international calls is: 6681905.
Webcast:
Individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the live and/or archived webcast of the teleconference call, visit www.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Webcast” navigation link. The archive of the teleconference call will be available through 5:00 p.m., Thursday, May 20, 2004.
About BankAtlantic Bancorp:
BankAtlantic Bancorp(NYSE: BBX) is a diversified financial services holding company and the parent company of BankAtlantic and Ryan Beck & Co. Through these subsidiaries, BankAtlantic Bancorp provides a full line of products and services encompassing consumer and commercial banking, brokerage and investment banking.
About BankAtlantic:
BankAtlantic,“Florida’s Most Convenient Bank,” is one of the largest financial institutions headquartered in Florida and provides a comprehensive offering of banking services and products via its broad network of community branches throughout Florida and its online banking division -
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BankAtlantic.com. BankAtlantic has 73 branch locations and operates more than 200 conveniently located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, Totally Free Change Exchange coin counters, 24/7 call center service, and free retail and business checking with a free gift.
Seven-Day Banking – Monday through Sunday
• | Extended branch lobby hours are 8:30 am — 5:00 pm, Monday through Wednesday, and 8:30 am — 8:00 pm, Thursday and Friday. Our Kendale Lakes branch in Miami-Dade will be open until midnight commencing June 1, 2004. |
• | Extended drive-thru hours are 7:30 am — 8:00 pm, Monday through Friday. |
• | Saturday branch lobby hours are 8:30 am — 3:00 pm, and drive-thru hours are 7:30 am — 6:00 pm. |
• | Sunday branch lobby hours are 11:00 am — 4:00 pm, and drive-thru hours are 11:00 am — 4:00 pm. |
About Ryan Beck & Co.:
Ryan Beck & Co.is a full-service broker dealer engaging in underwriting, market making, distribution, and trading of equity and debt securities. The firm also provides money management services, general securities brokerage, including financial planning for the individual investor, consulting and financial advisory services to financial institutions and middle market companies. Ryan Beck & Co. also provides independent research on approximately 100 companies and has approximately 500 financial consultants located in 33 offices nationwide.
For further information, please visit our websites:
www.BankAtlanticBancorp.com
www.BankAtlantic.com
www.RyanBeck.com
• | To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up at our website: www.BankAtlanticBancorp.com |
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BankAtlantic Bancorp Contact Info:
Investor Relations:
Contact: Leo Hinkley, Vice President
Phone: (954) 760-5317
Fax: (954) 760-5415
Email: InvestorRelations@BankAtlanticBancorp.com.
Mailing Address: BankAtlantic Bancorp, Investor Relations, 1750 East Sunrise
Blvd., Fort Lauderdale, FL 33304
Corporate Communications:
Contact: Sharon Lyn, Assistant Vice President
Phone: (954) 760-5402
Fax: (954) 760-5415
Email: CorpComm@BankAtlanticBancorp.com
BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Public Relations:
Contact: Hattie Harvey, Public Relations Manager
Phone: (954) 760-5383
Fax: (954) 760-5388
Email: HHarvey@BankAtlantic.com.
Public Relations for BankAtlantic: Boardroom Communications, Caren Berg Phone: (954) 370-8999, Fax: (954) 370-8892 Email: Caren@Boardroompr.com
# # #
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. When used in this press release and in any documents incorporated by reference herein, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify certain of these forward-looking statements. 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
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uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services; credit risks and loan losses, and the related sufficiency of the allowance for loan losses; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws; adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on our activities and the value of our assets; BankAtlantic’s seven-day banking initiative and other growth initiatives not being successful or producing results which do not justify their costs; the impact of periodic testing of goodwill and other intangible assets for impairment; as well as achieving the benefits of the prepayment of the Federal Home Loan Bank advances. Further, this press release contains forward-looking statements with respect to Ryan Beck & Co., which are subject to a number of risks and uncertainties including but not limited to the risks and uncertainties associated with its operations, products and services, changes in economic or regulatory policies, the volatility of the stock market and fixed income markets, as well as its revenue mix, the success of new lines of business, uncertainties associated with the Gruntal litigation; and additional risks and uncertainties that are subject to change and may be outside of Ryan Beck’s control. 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. The Company cautions that the foregoing factors are not exclusive.
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BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)
For The Three Months Ended | ||||||||||||||||||||||||
(in thousands except share data and ratios) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||||||
Current Earnings: | ||||||||||||||||||||||||
Net income (GAAP basis) | $ | 16,647 | 17,642 | 18,508 | 17,209 | 14,358 | ||||||||||||||||||
Income from continuing operations (GAAP basis) | (note 1) | $ | 16,647 | 7,826 | 10,144 | 9,809 | 10,818 | |||||||||||||||||
Operating net income | (note 2) | $ | 13,371 | 13,582 | 11,470 | 10,880 | 10,818 | |||||||||||||||||
Average Common Shares Outstanding: | ||||||||||||||||||||||||
Basic | 59,257,270 | 58,891,273 | 58,646,254 | 58,321,020 | 58,171,621 | |||||||||||||||||||
Diluted | 63,193,034 | 61,852,217 | 61,343,946 | 61,898,924 | 64,250,488 | |||||||||||||||||||
Key Performance Ratios (GAAP basis): | ||||||||||||||||||||||||
Basic earnings per share | $ | 0.28 | 0.30 | 0.32 | 0.30 | 0.25 | ||||||||||||||||||
Diluted earnings per share * | $ | 0.26 | 0.28 | 0.30 | 0.28 | 0.23 | ||||||||||||||||||
Basic earnings per share from continuing operations | $ | 0.28 | 0.13 | 0.17 | 0.17 | 0.19 | ||||||||||||||||||
Diluted earnings per share from continuing operations * | $ | 0.26 | 0.12 | 0.16 | 0.16 | 0.17 | ||||||||||||||||||
Return on average tangible assets from cont ops | (note 3) | % | 1.42 | 0.61 | 0.74 | 0.69 | 0.80 | |||||||||||||||||
Return on average tangible equity from cont ops | (note 3) | % | 20.26 | 7.23 | 9.77 | 9.91 | 11.31 | |||||||||||||||||
Key Performance Ratios (Operating basis): | ||||||||||||||||||||||||
Basic earnings per share | $ | 0.23 | 0.23 | 0.20 | 0.19 | 0.19 | ||||||||||||||||||
Diluted earnings per share * | $ | 0.21 | 0.22 | 0.19 | 0.18 | 0.17 | ||||||||||||||||||
Return on average tangible assets | (note 3,4) | % | 1.14 | 1.14 | 0.89 | 0.81 | 0.85 | |||||||||||||||||
Return on average tangible equity | (note 3,4) | % | 16.27 | 17.20 | 15.23 | 15.09 | 15.40 | |||||||||||||||||
* Diluted earnings per share calculation adds back | ||||||||||||||||||||||||
interest expense net of tax on convertible securities, if dilutive | $ | — | — | — | 129 | 440 | ||||||||||||||||||
subsidiaries stock options, if dilutive | (192 | ) | (104 | ) | (83 | ) | (27 | ) | (47 | ) | ||||||||||||||
Average Balance Sheet Data: | ||||||||||||||||||||||||
Assets | $ | 4,791,753 | 5,221,228 | 5,579,697 | 5,787,226 | 5,491,930 | ||||||||||||||||||
Tangible assets | (note 3) | $ | 4,703,305 | 5,132,341 | 5,490,370 | 5,696,656 | 5,399,787 | |||||||||||||||||
Tangible assets excluding Levitt | (note 3) | $ | 4,703,305 | 4,751,321 | 5,141,183 | 5,371,749 | 5,090,888 | |||||||||||||||||
Loans | $ | 3,730,782 | 3,698,377 | 3,942,124 | 3,983,528 | 3,633,446 | ||||||||||||||||||
Investments | $ | 668,269 | 773,271 | 901,283 | 1,087,937 | 1,131,737 | ||||||||||||||||||
Deposits and escrows | $ | 3,064,750 | 3,032,170 | 2,951,536 | 2,925,061 | 2,851,626 | ||||||||||||||||||
Stockholders’ equity | $ | 423,482 | 521,393 | 503,274 | 480,115 | 464,712 | ||||||||||||||||||
Tangible stockholders’ equity | (note 3) | $ | 328,714 | 433,103 | 415,294 | 396,050 | 382,487 | |||||||||||||||||
Tangible stockholders’ equity excluding Levitt | (note 3) | $ | 328,714 | 315,808 | 301,310 | 288,452 | 281,053 |
Notes:
(1) | GAAP basis income from continuing operations is defined as income from continuing operations in accordance with generally accepted accounting principles. |
(2) | Operating net income is defined as GAAP income from continuing operations adjusted for securities impairment recoveries and costs associated with debt redemptions, net of tax. |
(3) | Average tangible assets is defined as average total assets less average goodwill and core deposit intangibles. Average tangible stockholders’ equity is defined as average total stockholders’ equity less average goodwill, core deposit intangibles and other comprehensive income. |
(4) | Return on average tangible assets and equity are calculated excluding Levitt Corporation’s assets and equity for comparability. | |||
** | Operating net income is not prepared in accordance with GAAP and this non-GAAP financial measure should not be construed as being superior to GAAP. |
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
(In thousands, except share data) | 3/31/2004 | 12/31/2003 | 3/31/2003 | |||||||||
ASSETS | ||||||||||||
Cash and due from depository institutions | $ | 114,849 | 119,882 | 139,940 | ||||||||
Securities purchased under resell agreements and federal funds | 1,953 | — | — | |||||||||
Securities available for sale (at fair value) | 358,665 | 358,511 | 740,003 | |||||||||
Securities owned (at fair value) | 122,114 | 124,565 | 154,319 | |||||||||
Investment securities and tax certificates (approximate fair value: $139,075, $192,706 and $175,876) | 139,075 | 192,706 | 175,436 | |||||||||
Loans receivable, net of allowance for loan losses of $45,383, $45,595 and $48,695 | 3,674,173 | 3,686,153 | 3,881,015 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 30,340 | 40,325 | 65,443 | |||||||||
Accrued interest receivable | 26,781 | 27,866 | 35,715 | |||||||||
Real estate held for development and sale | 24,239 | 21,803 | 263,317 | |||||||||
Investments and advances in unconsolidated subsidiaries | 7,910 | 7,910 | 71,794 | |||||||||
Office properties and equipment, net | 96,628 | 93,577 | 93,136 | |||||||||
Deferred tax asset, net | 17,751 | 22,999 | 37,523 | |||||||||
Goodwill | 76,674 | 76,674 | 77,878 | |||||||||
Core deposit intangible asset | 11,546 | 11,985 | 13,303 | |||||||||
Other assets | 47,785 | 46,593 | 64,517 | |||||||||
Total assets | $ | 4,750,483 | 4,831,549 | 5,813,339 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits | ||||||||||||
Interest free checking | $ | 748,402 | 645,036 | 516,404 | ||||||||
NOW accounts | 567,498 | 533,888 | 446,076 | |||||||||
Savings accounts | 233,832 | 208,966 | 180,362 | |||||||||
Insured money fund savings | 870,447 | 865,590 | 820,181 | |||||||||
Certificate accounts | 723,256 | 804,662 | 920,350 | |||||||||
Total deposits | 3,143,435 | 3,058,142 | 2,883,373 | |||||||||
Advances from FHLB | 591,466 | 782,205 | 1,308,246 | |||||||||
Securities sold under agreements to repurchase | 118,465 | 138,809 | 340,983 | |||||||||
Federal funds purchased | 25,000 | — | 115,000 | |||||||||
Subordinated debentures, notes and bonds payable | 37,109 | 36,595 | 195,073 | |||||||||
Junior subordinated debentures | 263,266 | 263,266 | 252,918 | |||||||||
Securities sold not yet purchased | 34,250 | 37,813 | 49,760 | |||||||||
Due to clearing agent | 18,328 | 8,583 | 36,982 | |||||||||
Other liabilities | 89,587 | 92,684 | 151,388 | |||||||||
Total liabilities | 4,320,906 | 4,418,097 | 5,333,723 | |||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued and outstanding | — | — | — | |||||||||
Class A common stock, $.01 par value, authorized 80,000,000 shares; issued and outstanding 54,331,830, 54,396,824 and 53,516,846 shares | 543 | 544 | 535 | |||||||||
Class B common stock, $.01 par value, authorized 45,000,000 shares; issued and outstanding 4,876,124, 4,876,124 and 4,876,124 shares | 49 | 49 | 49 | |||||||||
Additional paid-in capital | 259,792 | 259,770 | 253,032 | |||||||||
Unearned compensation – restricted stock grants | (1,134 | ) | (1,178 | ) | (1,171 | ) | ||||||
Retained earnings | 163,005 | 148,311 | 226,241 | |||||||||
Total stockholders’ equity before accumulated other comprehensive income | 422,255 | 407,496 | 478,686 | |||||||||
Accumulated other comprehensive income | 7,322 | 5,956 | 930 | |||||||||
Total stockholders’ equity | 429,577 | 413,452 | 479,616 | |||||||||
Total liabilities and stockholders’ equity | $ | 4,750,483 | 4,831,549 | 5,813,339 | ||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
For The Three Months Ended | ||||||||||||||||||||||||
(in thousands) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||
Interest and fees on loans and leases | $ | 48,936 | 49,647 | 50,668 | 54,191 | 52,940 | ||||||||||||||||||
Interest on securities available for sale | 3,620 | 3,372 | 4,598 | 7,686 | 8,657 | |||||||||||||||||||
Interest and dividends on investment and securities owned | 7,073 | 7,833 | 7,545 | 7,344 | 7,368 | |||||||||||||||||||
Total interest income | 59,629 | 60,852 | 62,811 | 69,221 | 68,965 | |||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||
Interest on deposits | 6,973 | 7,504 | 7,758 | 9,758 | 11,169 | |||||||||||||||||||
Interest on advances from FHLB | 9,098 | 11,667 | 15,025 | 15,291 | 15,316 | |||||||||||||||||||
Interest on short-term borrowed funds | 250 | 289 | 558 | 1,248 | 819 | |||||||||||||||||||
Interest on long-term debt | 4,827 | 5,399 | 4,257 | 4,531 | 3,821 | |||||||||||||||||||
Capitalized interest on real estate developments | (307 | ) | (312 | ) | (286 | ) | (256 | ) | (339 | ) | ||||||||||||||
Total interest expense | 20,841 | 24,547 | 27,312 | 30,572 | 30,786 | |||||||||||||||||||
NET INTEREST INCOME | 38,788 | 36,305 | 35,499 | 38,649 | 38,179 | |||||||||||||||||||
Provision (recovery) for loan losses | (859 | ) | (1,811 | ) | (1,076 | ) | 1,490 | 850 | ||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 39,647 | 38,116 | 36,575 | 37,159 | 37,329 | |||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||
Service charges on deposits | 11,277 | 11,481 | 10,925 | 9,605 | 8,558 | |||||||||||||||||||
Other service charges and fees | 4,637 | 4,704 | 4,625 | 6,071 | 3,918 | |||||||||||||||||||
Broker/dealer revenue and other commissions | 62,445 | 55,566 | 49,992 | 50,565 | 51,665 | |||||||||||||||||||
Securities activities, net | 72 | (1,582 | ) | (336 | ) | (19 | ) | 384 | ||||||||||||||||
Securities Impairment recoveries | 16,782 | — | — | — | — | |||||||||||||||||||
Gain on sales of loans | 129 | 108 | 10 | 1 | 3 | |||||||||||||||||||
Income from real estate operations | 305 | 354 | 66 | 4,136 | 1,086 | |||||||||||||||||||
Income from unconsolidated subsidiaries | 118 | 119 | 106 | 118 | 82 | |||||||||||||||||||
Other | 2,542 | 2,492 | 2,405 | 2,125 | 2,381 | |||||||||||||||||||
Total non-interest income | 98,307 | 73,242 | 67,793 | 72,602 | 68,077 | |||||||||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||||||||||
Employee compensation and benefits | 67,180 | 56,795 | 55,318 | 57,415 | 57,412 | |||||||||||||||||||
Occupancy and equipment | 10,250 | 10,522 | 10,161 | 9,615 | 9,738 | |||||||||||||||||||
Advertising and promotion | 4,694 | 3,110 | 2,989 | 3,819 | 2,807 | |||||||||||||||||||
Professional fees | 2,737 | 5,243 | 4,239 | 3,715 | 3,115 | |||||||||||||||||||
Communications | 3,253 | 2,917 | 2,821 | 4,216 | 3,829 | |||||||||||||||||||
Floor broker and clearing fees | 2,802 | 2,506 | 2,327 | 2,236 | 2,158 | |||||||||||||||||||
Cost associated with debt redemption | 11,741 | 8,855 | 2,040 | 1,648 | — | |||||||||||||||||||
Other | 9,357 | 7,391 | 8,588 | 11,826 | 9,501 | |||||||||||||||||||
Total non-interest expenses | 112,014 | 97,339 | 88,483 | 94,490 | 88,560 | |||||||||||||||||||
Income from continuing operations before income taxes | 25,940 | 14,019 | 15,885 | 15,271 | 16,846 | |||||||||||||||||||
Provision for income taxes | 9,293 | 6,193 | 5,741 | 5,462 | 6,028 | |||||||||||||||||||
Income from continuing operations | 16,647 | 7,826 | 10,144 | 9,809 | 10,818 | |||||||||||||||||||
Discontinued operations, net of tax * | — | 9,816 | 8,364 | 7,400 | 3,540 | |||||||||||||||||||
GAAP net income | (note 1) | $ | 16,647 | 17,642 | 18,508 | 17,209 | 14,358 | |||||||||||||||||
Reconciliation of Operating and GAAP Income from continuing operations | ||||||||||||||||||||||||
GAAP income from continuing operations | $ | 16,647 | 7,826 | 10,144 | 9,809 | 10,818 | ||||||||||||||||||
Costs associated with debt redemption | 7,632 | 5,756 | 1,326 | 1,071 | — | |||||||||||||||||||
Securities impairment recoveries | (10,908 | ) | — | — | — | — | ||||||||||||||||||
Operating net income | (note 2) | $ | 13,371 | 13,582 | 11,470 | 10,880 | 10,818 | |||||||||||||||||
* Primarily Levitt Corporation.
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
For the three months ended | ||||||||||||||||||||||||
(in thousands except percentages and per share data) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,326,061 | 1,403,686 | 1,714,774 | 1,880,890 | 1,559,553 | ||||||||||||||||||
Commercial real estate | 1,701,012 | 1,660,004 | 1,621,407 | 1,508,064 | 1,482,352 | |||||||||||||||||||
Consumer | 374,222 | 341,246 | 319,269 | 306,740 | 296,675 | |||||||||||||||||||
Lease financing | 13,642 | 16,293 | 18,935 | 22,713 | 29,962 | |||||||||||||||||||
Commercial business | 141,955 | 111,705 | 108,714 | 106,323 | 100,753 | |||||||||||||||||||
Small business | 173,890 | 165,443 | 159,025 | 158,798 | 164,151 | |||||||||||||||||||
Total Loans | 3,730,782 | 3,698,377 | 3,942,124 | 3,983,528 | 3,633,446 | |||||||||||||||||||
Investments – taxable | 664,907 | 773,271 | 901,283 | 1,087,937 | 1,131,737 | |||||||||||||||||||
Investments – tax exempt | 3,362 | — | — | — | — | |||||||||||||||||||
Total interest earning assets | 4,399,051 | 4,471,648 | 4,843,407 | 5,071,465 | 4,765,183 | |||||||||||||||||||
Goodwill and core deposit intangibles | 88,448 | 88,887 | 89,327 | 90,570 | 92,143 | |||||||||||||||||||
Other non-interest earning assets | 304,254 | 660,693 | 646,963 | 625,191 | 634,604 | |||||||||||||||||||
Total assets | $ | 4,791,753 | 5,221,228 | 5,579,697 | 5,787,226 | 5,491,930 | ||||||||||||||||||
Tangible assets | (note 3) | $ | 4,703,305 | 5,132,341 | 5,490,370 | 5,696,656 | 5,399,787 | |||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 220,005 | 205,564 | 197,778 | 185,685 | 171,298 | ||||||||||||||||||
NOW | 543,619 | 507,876 | 473,741 | 454,108 | 425,642 | |||||||||||||||||||
Money funds | 866,767 | 879,095 | 874,789 | 836,246 | 809,462 | |||||||||||||||||||
Certificates of deposit | 769,949 | 815,454 | 837,221 | 913,564 | 966,869 | |||||||||||||||||||
Total interest bearing deposits | 2,400,340 | 2,407,989 | 2,383,529 | 2,389,603 | 2,373,271 | |||||||||||||||||||
Short-term borrowed funds | 128,130 | 131,095 | 228,427 | 385,604 | 269,660 | |||||||||||||||||||
FHLB advances | 760,973 | 937,888 | 1,249,074 | 1,313,896 | 1,284,983 | |||||||||||||||||||
Long-term debt | 299,878 | 413,154 | 407,538 | 409,567 | 377,185 | |||||||||||||||||||
Total interest bearing liabilities | 3,589,321 | 3,890,126 | 4,268,568 | 4,498,670 | 4,305,099 | |||||||||||||||||||
Non-interest bearing deposits | 664,410 | 624,181 | 568,007 | 535,458 | 478,355 | |||||||||||||||||||
Non-interest bearing other liabilities | 114,540 | 185,528 | 239,848 | 272,983 | 243,764 | |||||||||||||||||||
Total liabilities | 4,368,271 | 4,699,835 | 5,076,423 | 5,307,111 | 5,027,218 | |||||||||||||||||||
Stockholders’ equity | 423,482 | 521,393 | 503,274 | 480,115 | 464,712 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,791,753 | 5,221,228 | 5,579,697 | 5,787,226 | 5,491,930 | ||||||||||||||||||
Other comprehensive (loss) income in stockholders’ equity | $ | 6,320 | (597 | ) | (1,347 | ) | (6,505 | ) | (9,918 | ) | ||||||||||||||
Tangible stockholders’ equity | (note 3) | $ | 328,714 | 433,103 | 415,294 | 396,050 | 382,487 | |||||||||||||||||
Period End | ||||||||||||||||||||||||
Total loans, net | $ | 3,674,173 | 3,686,153 | 3,739,638 | 4,024,344 | 3,881,015 | ||||||||||||||||||
Total assets | 4,750,483 | 4,831,549 | 5,197,060 | 5,818,851 | 5,813,339 | |||||||||||||||||||
Total stockholders’ equity | 429,577 | 413,452 | 513,669 | 495,831 | 479,616 | |||||||||||||||||||
Common shares outstanding | 59,207,954 | 59,272,948 | 58,940,200 | 58,629,845 | 58,392,970 | |||||||||||||||||||
Cash dividends | 1,953,863 | 1,956,008 | 1,945,268 | 1,817,525 | 1,810,182 | |||||||||||||||||||
Common stock cash dividends per share | 0.033 | 0.033 | 0.033 | 0.031 | 0.031 | |||||||||||||||||||
Closing stock price (1) | 16.96 | 14.02 | 10.52 | 8.78 | 7.23 | |||||||||||||||||||
High stock price for the quarter (1) | 19.00 | 14.58 | 11.64 | 9.22 | 7.47 | |||||||||||||||||||
Low stock price for the quarter (1) | 13.70 | 10.44 | 8.68 | 7.09 | 6.47 | |||||||||||||||||||
Book value per share – historical | 7.26 | 6.98 | 8.72 | 8.46 | 8.21 |
(1) adjusted to reflect the Levitt spin-off.
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||
Net interest income | $ | 39,795 | 37,326 | 36,558 | 40,716 | 39,499 | ||||||||||||||
Provision (recovery) for loan losses | (859 | ) | (1,811 | ) | (1,076 | ) | 1,490 | 850 | ||||||||||||
Net Interest income after provision for loan losses | 40,654 | 39,137 | 37,634 | 39,226 | 38,649 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposits | 11,277 | 11,481 | 10,925 | 9,605 | 8,558 | |||||||||||||||
Other service charges and fees | 4,637 | 4,704 | 4,625 | 6,071 | 3,918 | |||||||||||||||
Securities losses | (3 | ) | (1,582 | ) | (336 | ) | (19 | ) | (21 | ) | ||||||||||
Gain on sales of loans | 129 | 108 | 10 | 1 | 3 | |||||||||||||||
Income from real estate operations | 305 | 354 | 66 | 4,136 | 1,086 | |||||||||||||||
Other non-interest income | 1,875 | 1,858 | 1,864 | 1,700 | 1,570 | |||||||||||||||
Total non-interest income | 18,220 | 16,923 | 17,154 | 21,494 | 15,114 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Employee compensation and benefits | 23,029 | 20,171 | 19,387 | 20,466 | 19,468 | |||||||||||||||
Occupancy and equipment | 7,146 | 7,092 | 6,874 | 6,715 | 6,648 | |||||||||||||||
Advertising | 3,463 | 2,517 | 2,444 | 2,874 | 1,599 | |||||||||||||||
Professional fees | 1,258 | 1,129 | 1,139 | 1,025 | 1,096 | |||||||||||||||
Cost associated with debt redemption | 11,741 | 8,855 | 2,040 | — | — | |||||||||||||||
Other | 7,495 | 5,702 | 7,275 | 9,578 | 7,519 | |||||||||||||||
Total non-interest expense | 54,132 | 45,466 | 39,159 | 40,658 | 36,330 | |||||||||||||||
Income from bank operations business segment before income taxes | 4,742 | 10,594 | 15,629 | 20,062 | 17,433 | |||||||||||||||
Provision for income taxes | 1,436 | 2,780 | 5,675 | 7,103 | 6,031 | |||||||||||||||
Net income from bank operations business segment | $ | 3,306 | 7,814 | 9,954 | 12,959 | 11,402 | ||||||||||||||
Reconciliation of Operating and business segment net income | ||||||||||||||||||||
Business segment income | $ | 3,306 | 7,814 | 9,954 | 12,959 | 11,402 | ||||||||||||||
Cost associated with debt redemption | 7,632 | 5,756 | 1,326 | — | — | |||||||||||||||
Operating net income | $ | 10,938 | 13,570 | 11,280 | 12,959 | 11,402 | ||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
For the Three Months Ended | ||||||||||||||||||||||||
3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | ||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||
Average total interest earning assets ( in 000’s) | $ | 4,220,559 | 4,381,497 | 4,706,976 | 4,930,653 | 4,634,822 | ||||||||||||||||||
Average total interest bearing liabilities (in 000’s) | $ | 3,347,890 | 3,554,854 | 3,924,292 | 4,174,158 | 3,979,381 | ||||||||||||||||||
GAAP efficiency ratio | % | 93.31 | 83.81 | 72.91 | 65.36 | 66.52 | ||||||||||||||||||
GAAP return on average assets | % | 0.29 | 0.66 | 0.79 | 0.99 | 0.92 | ||||||||||||||||||
GAAP return on average equity | % | 2.67 | 6.42 | 8.26 | 11.03 | 9.91 | ||||||||||||||||||
Operating efficiency ratio (1) | % | 73.07 | 67.49 | 69.11 | 65.36 | 66.52 | ||||||||||||||||||
Operating return on average assets (1) | % | 0.96 | 1.15 | 0.90 | 0.99 | 0.92 | ||||||||||||||||||
Operating return on average equity (1) | % | 8.82 | 11.15 | 9.36 | 11.03 | 9.91 | ||||||||||||||||||
Net interest margin | % | 3.73 | 3.39 | 3.10 | 3.27 | 3.35 | ||||||||||||||||||
Yield on earning assets | % | 5.34 | 5.20 | 5.11 | 5.46 | 5.78 | ||||||||||||||||||
Cost of interest-bearing liabilities | % | 2.02 | 2.24 | 2.41 | 2.58 | 2.83 | ||||||||||||||||||
Interest spread | % | 3.32 | 2.96 | 2.70 | 2.88 | 2.95 |
(1) | Ratios have been adjusted to exclude costs associated with debt redemptions. |
Condensed Statements of Financial Condition (Unaudited)
As Of | ||||||||||||||||||||
(In thousands) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable | $ | 3,621,787 | 3,630,682 | 3,767,935 | 4,070,332 | 3,925,994 | ||||||||||||||
Held to maturity securities | 167,615 | 231,231 | 212,236 | 274,352 | 237,479 | |||||||||||||||
Available for sale securities | 338,639 | 339,362 | 337,147 | 503,514 | 739,468 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 11,546 | 11,985 | 12,424 | 12,864 | 13,303 | |||||||||||||||
Other assets | 284,289 | 283,101 | 286,709 | 289,764 | 309,437 | |||||||||||||||
Total assets | $ | 4,494,365 | 4,566,850 | 4,686,940 | 5,221,315 | 5,296,170 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Interest free checking | $ | 748,533 | 645,325 | 594,685 | 546,805 | 516,404 | ||||||||||||||
NOW accounts | 567,498 | 533,888 | 480,837 | 455,514 | 446,076 | |||||||||||||||
Savings accounts | 233,832 | 208,966 | 202,354 | 191,586 | 180,362 | |||||||||||||||
Total low costs deposits | 1,549,863 | 1,388,179 | 1,277,876 | 1,193,905 | 1,142,842 | |||||||||||||||
Insured money fund savings | 870,447 | 865,590 | 878,281 | 850,579 | 820,181 | |||||||||||||||
Certificate accounts | 723,256 | 804,662 | 826,045 | 859,896 | 920,350 | |||||||||||||||
Total deposits | 3,143,566 | 3,058,431 | 2,982,202 | 2,904,380 | 2,883,373 | |||||||||||||||
Advances from Federal Home Loan Bank | 591,466 | 782,205 | 956,820 | 1,332,300 | 1,308,246 | |||||||||||||||
Short term borrowings | 191,469 | 161,597 | 167,983 | 401,298 | 523,947 | |||||||||||||||
Long term debt | 36,582 | 35,334 | 36,077 | 35,112 | 37,579 | |||||||||||||||
Other liabilities | 42,243 | 39,427 | 62,389 | 70,228 | 71,684 | |||||||||||||||
Total liabilities | 4,005,326 | 4,076,994 | 4,205,471 | 4,743,318 | 4,824,829 | |||||||||||||||
Stockholder’s equity | 489,039 | 489,856 | 481,469 | 477,997 | 471,341 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 4,494,365 | 4,566,850 | 4,686,940 | 5,221,315 | 5,296,170 | ||||||||||||||
Bank Operations Business Segment
Average Balance Sheet – Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
March 31, 2004 | March 31, 2003 | |||||||||||||||||||||||
( in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,326,061 | 15,941 | 4.81 | % | $ | 1,559,553 | 21,586 | 5.54 | % | ||||||||||||||
Commercial real estate | 1,689,962 | 23,694 | 5.61 | 1,530,402 | 22,866 | 5.98 | ||||||||||||||||||
Consumer | 374,222 | 3,900 | 4.17 | 296,675 | 3,467 | 4.67 | ||||||||||||||||||
Lease financing | 13,642 | 382 | 11.20 | 29,962 | 834 | 11.13 | ||||||||||||||||||
Commercial business | 98,959 | 1,500 | 6.06 | 100,753 | 1,450 | 5.76 | ||||||||||||||||||
Small business | 173,891 | 3,085 | 7.10 | 164,151 | 3,037 | 7.40 | ||||||||||||||||||
Total loans | 3,676,737 | 48,502 | 5.28 | 3,681,496 | 53,240 | 5.78 | ||||||||||||||||||
Investments – tax exempt | 3,362 | 51 | (1) | 6.04 | — | — | — | |||||||||||||||||
Investments – taxable | 540,460 | 7,808 | 5.78 | 953,326 | 13,688 | 5.74 | ||||||||||||||||||
Total interest earning assets | 4,220,559 | 56,361 | 5.34 | % | 4,634,822 | 66,928 | 5.78 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 82,263 | 84,754 | ||||||||||||||||||||||
Other non-interest earning assets | 240,068 | 261,961 | ||||||||||||||||||||||
Total Assets | $ | 4,542,890 | $ | 4,981,537 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 220,005 | 144 | 0.26 | % | $ | 171,298 | 316 | 0.75 | % | ||||||||||||||
NOW | 543,619 | 491 | 0.36 | 425,622 | 542 | 0.52 | ||||||||||||||||||
Money funds | 866,767 | 1,876 | 0.87 | 809,482 | 2,652 | 1.33 | ||||||||||||||||||
Certificate accounts | 769,949 | 4,462 | 2.33 | 966,869 | 7,659 | 3.21 | ||||||||||||||||||
Total deposits | 2,400,340 | 6,973 | 1.17 | 2,373,271 | 11,169 | 1.91 | ||||||||||||||||||
Short-term borrowed funds | 150,735 | 302 | 0.81 | 285,716 | 837 | 1.19 | ||||||||||||||||||
Advances from FHLB | 760,973 | 9,098 | 4.81 | 1,284,983 | 15,315 | 4.83 | ||||||||||||||||||
Long-term debt | 35,842 | 482 | 5.41 | 35,411 | 447 | 5.12 | ||||||||||||||||||
Total interest bearing liabilities | 3,347,890 | 16,855 | 2.02 | 3,979,381 | 27,768 | 2.83 | ||||||||||||||||||
Non-interest bearing deposits | 664,796 | 478,355 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 34,025 | 63,538 | ||||||||||||||||||||||
Total Liabilities | 4,046,711 | 4,521,274 | ||||||||||||||||||||||
Stockholder’s equity | 496,179 | 460,263 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 4,542,890 | $ | 4,981,537 | ||||||||||||||||||||
Net interest income/net interest spread | 39,506 | 3.32 | % | 39,160 | 2.95 | % | ||||||||||||||||||
Capitalized interest from real estate operations | 307 | 339 | ||||||||||||||||||||||
Net interest income (tax equivalent) | 39,813 | 39,499 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 5.34 | % | 5.78 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 1.61 | 2.43 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.73 | % | 3.35 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
(in thousands) | For the Three Months Ended | |||||||||||||||||||
3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
Beginning balance | $ | 45,595 | 48,202 | 49,576 | 48,695 | 48,022 | ||||||||||||||
Charge-offs: | ||||||||||||||||||||
Residential real estate | (231 | ) | (320 | ) | (150 | ) | (98 | ) | (114 | ) | ||||||||||
Commercial real estate | — | — | — | — | — | |||||||||||||||
Commercial business | (344 | ) | (1,306 | ) | (1,798 | ) | (536 | ) | (2,453 | ) | ||||||||||
Consumer | (248 | ) | (1,085 | ) | (260 | ) | (490 | ) | (405 | ) | ||||||||||
Small business | (44 | ) | (321 | ) | (334 | ) | (1,433 | ) | (620 | ) | ||||||||||
Syndication | — | — | — | — | — | |||||||||||||||
Total charge-offs | (867 | ) | (3,032 | ) | (2,542 | ) | (2,557 | ) | (3,592 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Residential real estate | 26 | 184 | 424 | 61 | 57 | |||||||||||||||
Commercial real estate | 1 | — | 1 | — | 1 | |||||||||||||||
Commercial business | 559 | 466 | 492 | 694 | 667 | |||||||||||||||
Consumer | 338 | 538 | 343 | 414 | 464 | |||||||||||||||
Small business | 392 | 482 | 748 | 575 | 833 | |||||||||||||||
Syndication | 198 | 566 | 236 | 204 | 2,127 | |||||||||||||||
Total recoveries | 1,514 | 2,236 | 2,244 | 1,948 | 4,149 | |||||||||||||||
Net (charge-offs) recoveries | 647 | (796 | ) | (298 | ) | (609 | ) | 557 | ||||||||||||
Provision (recovery) for loan losses | (859 | ) | (1,811 | ) | (1,076 | ) | 1,490 | 850 | ||||||||||||
Adjustments to acquired loan losses | — | — | — | — | (734 | ) | ||||||||||||||
Ending allowance for loan losses | $ | 45,383 | 45,595 | 48,202 | 49,576 | 48,695 | ||||||||||||||
Annualized net charge-offs to average loans | % | (0.07 | ) | 0.09 | 0.03 | 0.06 | (0.06 | ) | ||||||||||||
As of | ||||||||||||||||||||
3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans and tax certificates | $ | 11,489 | 10,399 | 11,290 | 12,900 | 13,357 | ||||||||||||||
Acquired nonaccrual loans | 10 | 10 | 314 | 409 | 1,537 | |||||||||||||||
Real estate owned, net of allowance | 1,667 | 2,422 | 8,904 | 8,157 | 9,045 | |||||||||||||||
Other repossessed assets | 0 | 0 | 274 | 435 | 513 | |||||||||||||||
Total nonperforming assets | $ | 13,166 | 12,831 | 20,782 | 21,901 | 24,452 | ||||||||||||||
Loan loss allowance to non performing assets | % | 344.70 | 355.35 | 231.94 | 226.36 | 199.15 | ||||||||||||||
Nonperforming assets to total loans and other assets | % | 0.34 | 0.33 | 0.53 | 0.51 | 0.60 | ||||||||||||||
Allowance for loan losses to total loans | % | 1.22 | 1.22 | 1.27 | 1.22 | 1.24 |
Ryan Beck & Co., Inc. Business Segment
Consolidated Statements of Operations and Statistics – Unaudited
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||
Revenues | ||||||||||||||||||||
Principal transactions | $ | 24,443 | 25,288 | 21,091 | 24,057 | 25,083 | ||||||||||||||
Investment banking | 12,631 | 7,318 | 7,642 | 5,079 | 7,689 | |||||||||||||||
Commissions | 25,371 | 22,963 | 21,258 | 21,603 | 19,352 | |||||||||||||||
Interest, dividends and other | 3,416 | 3,683 | 3,450 | 2,662 | 3,159 | |||||||||||||||
Total operating revenues | 65,861 | 59,252 | 53,441 | 53,401 | 55,283 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Compensation, benefits | 44,042 | 36,619 | 35,924 | 36,892 | 37,923 | |||||||||||||||
Professional fees | 1,045 | 3,775 | 2,638 | 2,332 | 1,722 | |||||||||||||||
Communication | 3,253 | 2,916 | 2,822 | 4,216 | 3,829 | |||||||||||||||
Occupancy and equipment | 3,103 | 3,430 | 3,287 | 2,900 | 3,090 | |||||||||||||||
Floor broker and clearing fees | 2,802 | 2,506 | 2,327 | 2,236 | 2,158 | |||||||||||||||
Interest and other | 3,054 | 2,444 | 2,027 | 3,349 | 3,446 | |||||||||||||||
Total operating expenses | 57,299 | 51,690 | 49,025 | 51,925 | 52,168 | |||||||||||||||
Income from Ryan Beck before income taxes | 8,562 | 7,562 | 4,416 | 1,476 | 3,115 | |||||||||||||||
Provision for income taxes | 3,434 | 3,559 | 1,522 | 551 | 1,292 | |||||||||||||||
Income from Ryan Beck’s continuing operations | 5,128 | 4,003 | 2,894 | 925 | 1,823 | |||||||||||||||
Discontinued operations (GMS), net of tax | — | — | 306 | 754 | 83 | |||||||||||||||
Net income from Ryan Beck business segment | $ | 5,128 | 4,003 | 3,200 | 1,679 | 1,906 | ||||||||||||||
Statistics: | ||||||||||||||||||||
GAAP return on equity | % | 26.40 | 20.65 | 17.40 | 9.55 | 11.10 | ||||||||||||||
Continuing operations return on equity | 26.40 | 20.65 | 15.74 | 5.26 | 10.62 | |||||||||||||||
Compensation as a percent of revenues | 66.87 | 61.80 | 67.22 | 69.08 | 68.60 | |||||||||||||||
Commissions to total revenues | 38.52 | 38.75 | 39.78 | 40.45 | 35.01 | |||||||||||||||
Principal transactions to total revenues | 37.11 | 42.68 | 39.47 | 45.05 | 45.37 | |||||||||||||||
Investment banking revenue to total revenues | 19.18 | 12.35 | 14.30 | 9.51 | 13.91 |
Condensed Statements of Financial Condition – Unaudited
As of | ||||||||||||||||||||
(in thousands) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 4,888 | 5,538 | 259 | 1,193 | 3,615 | ||||||||||||||
Securities | 122,114 | 124,565 | 87,837 | 224,405 | 154,319 | |||||||||||||||
Other investments | — | — | 4,212 | 1,456 | — | |||||||||||||||
Notes receivable – GMS | 10,261 | 11,971 | 13,681 | — | — | |||||||||||||||
Property and equipment, net | 4,749 | 3,713 | 3,599 | 4,095 | 4,037 | |||||||||||||||
Goodwill | 6,184 | 6,184 | 6,184 | 6,184 | 7,389 | |||||||||||||||
Other assets | 28,051 | 26,703 | 27,149 | 37,085 | 38,023 | |||||||||||||||
Total assets | $ | 176,247 | 178,674 | 142,921 | 274,418 | 207,383 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Securities sold not yet purchased | $ | 34,250 | 37,813 | 15,089 | 34,968 | 49,760 | ||||||||||||||
Note payable | 427 | 801 | 1,176 | 1,550 | 1,930 | |||||||||||||||
Note payable to BankAtlantic Bancorp | — | — | — | 5,000 | 5,000 | |||||||||||||||
Due to clearing agent | 18,328 | 8,583 | 6,087 | 112,410 | 36,982 | |||||||||||||||
Other liabilities | 45,559 | 53,922 | 47,013 | 50,137 | 45,038 | |||||||||||||||
Total liabilities | 98,564 | 101,119 | 69,365 | 204,065 | 138,710 | |||||||||||||||
Stockholder’s equity | 77,683 | 77,555 | 73,556 | 70,353 | 68,673 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 176,247 | 178,674 | 142,921 | 274,418 | 207,383 | ||||||||||||||
Parent Company Business Segment Activities
Condensed Statements of Operations – Unaudited
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||
Net interest (expense) | $ | (3,592 | ) | (3,804 | ) | (3,676 | ) | (3,868 | ) | (3,273 | ) | |||||||||
Income from unconsolidated subsidiaries | 118 | 119 | 107 | 117 | 82 | |||||||||||||||
Gains on sales of assets | 75 | — | — | — | 404 | |||||||||||||||
Securities Impairment recoveries | 16,782 | — | — | — | — | |||||||||||||||
Cost associated with debt redemption | — | — | — | (1,648 | ) | — | ||||||||||||||
Other income (expense) | (747 | ) | (455 | ) | (588 | ) | (868 | ) | (915 | ) | ||||||||||
Income (loss) from parent company activities before income taxes | 12,636 | (4,140 | ) | (4,157 | ) | (6,267 | ) | (3,702 | ) | |||||||||||
Provision (Benefit) for income taxes | 4,423 | (148 | ) | (1,454 | ) | (2,192 | ) | (1,295 | ) | |||||||||||
Income (loss) from parent company activities from continuing operations | 8,213 | (3,992 | ) | (2,703 | ) | (4,075 | ) | (2,407 | ) | |||||||||||
Reconciliation of Operating and business segment income | ||||||||||||||||||||
Business segment income from continuing operations | $ | 8,213 | (3,992 | ) | (2,703 | ) | (4,075 | ) | (2,407 | ) | ||||||||||
Securities impairment recoveries | (10,908 | ) | — | — | — | — | ||||||||||||||
Cost associated with debt redemption | — | — | — | 1,071 | — | |||||||||||||||
Operating loss (pretax) | $ | (2,695 | ) | (3,992 | ) | (2,703 | ) | (3,004 | ) | (2,407 | ) | |||||||||
Condensed Statements of Financial Condition – Unaudited
As of | ||||||||||||||||||||
(in thousands) | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 48,841 | 22,765 | 16,551 | 15,115 | 53,513 | ||||||||||||||
Securities | 21,826 | 20,949 | 17,254 | 9,458 | 3,935 | |||||||||||||||
Notes receivable from related parties | 42,125 | 43,500 | 30,000 | 35,000 | 35,000 | |||||||||||||||
Investment in subsidiaries | 566,725 | 567,411 | 679,253 | 664,825 | 649,837 | |||||||||||||||
Investment in unconsolidated subsidiaries | 7,910 | 7,910 | 12,545 | 12,027 | 11,279 | |||||||||||||||
Other assets | 8,235 | 16,953 | 24,050 | 25,490 | 32,129 | |||||||||||||||
Total assets | $ | 695,662 | 679,488 | 779,653 | 761,915 | 785,693 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 263,366 | 263,366 | 263,318 | 263,318 | 302,735 | ||||||||||||||
Other liabilities | 2,719 | 2,670 | 2,666 | 2,766 | 3,342 | |||||||||||||||
Total liabilities | 266,085 | 266,037 | 265,984 | 266,084 | 306,077 | |||||||||||||||
Stockholders’ equity: | 429,577 | 413,452 | 513,669 | 495,831 | 479,616 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 695,662 | 679,488 | 779,653 | 761,915 | 785,693 | ||||||||||||||