BankAtlantic Bancorp Reports Earnings
For The Second Quarter 2004
Income From Continuing Operations Increased 87%
Earnings Per Share Increased 81%
FORT LAUDERDALE, Florida – July 21, 2004 — BankAtlantic Bancorp, Inc. (NYSE: BBX) today reported income from continuing operations increased 87% to $18.3 million for the second quarter of 2004, up from $9.8 million earned in the corresponding period in 2003. Diluted earnings per share from continuing operations increased 81% to $0.29, up from $0.16 earned in the corresponding period in 2003.
Chairman of the Board and Chief Executive Officer Alan B. Levan commented, “We are extremely pleased with second quarter results. Since the inception of BankAtlantic’s ‘Florida’s Most Convenient Bank’ initiatives, growth in low cost deposits has continued at significantly high levels. We maintained a net interest margin for the quarter of 3.73% vs. 3.27% in the 2003 period. Credit quality remained strong. Ryan Beck & Co. also had an extraordinary quarter, reporting an increase of 658% in income from continuing operations over the equivalent quarter of 2003, reflecting strong investment banking performance.”
Additional accomplishments and highlights include:
BankAtlantic:
“BankAtlantic’s groundbreaking ‘Florida’s Most Convenient Bank’ initiatives continue to contribute to record growth in new customers proving our belief that customers desire the unsurpassed convenience offered by BankAtlantic. Since January 2002, BankAtlantic has opened over 331,000 new checking and savings accounts, including nearly 42,000 in the second quarter of 2004. The second quarter of 2004 marks the tenth consecutive quarter of double-digit growth in new low cost checking and savings account openings. The average balances in these accounts are very typical for consumer banking relationships, with average balances in the range of $2,500 — $3,500 for individual accounts and approximately $10,000 — $15,000 for small business accounts. The growth in our low cost deposits from the inception of this program has resulted from accounts in these ranges.
“As shown in the table below, balances in low cost deposits increased 37% on a ‘same branch basis’ in the second quarter of 2004 over the second quarter of 2003, to a total of $1.6 billion at quarter-end. At December 31, 2001, immediately preceding the initiation of the ‘Florida’s Most Convenient
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Bank’ program, BankAtlantic had $600 million in low cost deposits. Non-interest bearing demand deposits now constitute 24% of deposit funding, up from 19% a year ago, and 13% before initiation of the program.
The following table presents comparative data for new account balances:
MAR '02 | JUN '02 | SEP '02 | DEC '02 | MAR '03 | ||||||||||||||||
Demand Deposits, as % of Total Deposits | 13 | % | 14 | % | 14 | % | 16 | % | 18 | % | ||||||||||
Low Cost Deposits*, as % of Total Deposits | 29 | % | 30 | % | 32 | % | 35 | % | 40 | % | ||||||||||
Low Cost Deposit Growth* | ||||||||||||||||||||
“Same Branch” Y-o-Y Change** | 15 | % | 23 | % | 30 | % | 30 | % | 31 | % | ||||||||||
Effective rate, Low Cost Deposits* | 0.38 | % | 0.49 | % | 0.45 | % | 0.35 | % | 0.33 | % |
JUN '03 | SEP '03 | DEC '03 | MAR '04 | JUN '04 | ||||||||||||||||
Demand Deposits, as % of Total Deposits | 19 | % | 20 | % | 21 | % | 24 | % | 24 | % | ||||||||||
Low Cost Deposits*, as % of Total Deposits | 41 | % | 43 | % | 45 | % | 49 | % | 50 | % | ||||||||||
Low Cost Deposit Growth* | ||||||||||||||||||||
“Same Branch” Y-o-Y Change** | 33 | % | 36 | % | 34 | % | 36 | % | 37 | % | ||||||||||
Effective rate, Low Cost Deposits* | 0.28 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % |
* Low Cost Deposits consist of DDA, Now Checking, and Savings.
** Includes branches open two or more years.
“BankAtlantic’s credit quality remained strong. The ratio of non-performing loans remained favorable at 0.32% of total loans at June 30, 2004, unchanged from the quarter ending March 31, 2004. The ratio of non-performing assets to total loans plus other real estate improved to 0.35% at June 30, 2004, down from 0.36% at March 31, 2004. The Allowance for Loan and Lease Losses was 1.18% of total loans and leases at June 30, 2004, down slightly from 1.22% of total loans and leases at March 31, 2004. However, the coverage ratio of the Allowance for Loan and Lease Losses to non-performing loans remained stable at 368% at June 30, 2004 vs. 387% at March 31, 2004.
“During the second quarter, the Bank successfully recovered $2.1 million from the guarantor on a loan that was charged-off in July of 2002. Primarily as a result of this recovery, the Bank had net recoveries for the quarter of $3.3 million and a negative provision of $2.0 million. On a year-to-date
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basis, the Bank had net recoveries of $4.0 million and a negative provision of $2.8 million. In the corresponding period of 2003, net charge-offs were negligible and a provision of $2.3 million was recorded.
“The net interest margin at BankAtlantic improved to 3.73%, up from 3.27% in the comparable quarter of 2003 and unchanged from the immediately preceding quarter. Our continued progress in improving the margin reflects the growth in low cost deposits together with reductions in high cost Federal Home Loan Bank advances, as we have made prepayments of those advances in each of the three preceding quarters. While further margin improvement will largely depend on the future pattern of interest rates, we believe our level of low cost deposits, coupled with the positioning of our balance sheet for rising interest rates should enable BankAtlantic to benefit from a higher interest rate environment.
“On July 15, BankAtlantic unveiled its branch de novo expansion strategy for 2005, and its renovation and branch ‘branding’ initiative for its existing 73 branches. BankAtlantic’s commitment to these two programs is designed to position the Bank for increased growth within its existing markets.
2005 Branch De Novo Initiative:
“BankAtlantic’s branch expansion initiative includes a mix of new in-line and free-standing branches beginning in the first quarter of 2005. The Bank expects to open between eight and ten branches in 2005. The initial focus will be to place new branches within BankAtlantic’s current footprint, with future growth in other attractive markets.
Branch Branding Initiative:
“The branch branding initiative, including interior renovation of all existing 73 BankAtlantic branches, is designed to create a consistent retail environment and customer-friendly identity regardless of the branch or its location. The renovation process includes inviting new colors, a comfortable customer waiting area, a video plasma screen, a redesigned Totally Free Change Exchange coin counter, and a ‘Yeah, We’re Open’ sign signifying the bank’s convenient 7 day banking strategy and its bold and spirited personality.
Ryan Beck & Co.:
“Ryan Beck & Co. reported record net income of $7.0 million on operating revenue of $65.9 million for the three-month period ending June 30, 2004. Growth in operating revenue for the second quarter of 2004 was 23% over the comparable 2003 period. Investment banking revenues for the quarter grew to $18 million vs. $5.1 million in the comparable 2003 period. The pre-tax margin increased to 18.5% in the second quarter 2004, up from 2.8% in the second quarter of 2003. Income from continuing
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operations increased 658% vs. the comparable 2003 period. Year-to-date, return on average equity grew to 31.8% vs. 8.0% for the corresponding period of 2003. Total assets in approximately 152,000 client accounts were approximately $18.1 billion at June 30, 2004, excluding certain annuities and mutual funds. Commissions and principal transactions decreased 3.9% from the quarter ended June 30, 2003, and fell 12% from the immediately preceding quarter, reflecting decreased activity on the part of individual investors given current market conditions.
“Ryan Beck & Co. reached several significant milestones during the period. Ryan Beck served as the dealer-manager for one of the largest and most complex mutual to stock conversions ever by assisting a client in raising over $1.0 billion in equity and acquiring two companies. Ryan Beck also launched a major product initiative focusing on exchange-traded funds, with itsWashington Crossing Advisors Conquest Program.This is a proprietary new program offering discretionary management of ETF portfolios managed by Chief Investment Strategist, Joe Battipaglia and Ryan Beck’s Investment Strategy Group. Ryan Beck’s financial institutions group announced or completed twelve merger and acquisition (M&A) transactions and five capital financing transactions through the second quarter. Through June 30, 2004, the firm is ranked fourth in the SNL Securities M&A League Tables for the number of M&A transactions announced.
“Ryan Beck also completed the relocation of its headquarters, moving from Livingston to its new 40,000 square feet facility in Florham Park, New Jersey, and expanded its presence and visibility by opening a new branch office in Cherry Hill, N.J., its first in the southern part of the state. The firm also made three significant additions to the investment research department during the quarter.
BankAtlantic Bancorp:
“Earlier this year, we withdrew an announced public offering of up to 6 million shares of equity. Our decision to terminate this offering was based on the improvement in our equity ratios and cash position, and a market decline that made an offering unattractive without a compelling need for the capital at that time. Recently, we decided not to undertake an equity offering unless a specific capital need arises, such as would result from an acquisition opportunity which offers a strong economic justification.
“At quarter end, BankAtlantic Bancorp was added to Standard & Poor’s (S&P) SmallCap 600 Index. The S&P 600 Index covers approximately three percent of the domestic equities market and is well accepted in the investment community as representing promising smaller capitalization companies. We are very pleased to be included in this group of companies. In addition, BankAtlantic Bancorp is also
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listed in the S&P 1500 Supercomposite Index and the New York Stock Exchange Composite Index,” Levan concluded.
Financial Highlights:
Second Quarter, 2004 Compared to Second Quarter, 2003
BankAtlantic Bancorp — consolidated (adjusted for Levitt Corporation spin-off):
• | Income from continuing operations of $18.3 million vs. $9.8 million, an increase of 87%. | |||
• | Diluted earnings per share from continuing operations of $0.29 vs. $0.16, an increase of 81%. | |||
• | Return from continuing operations on tangible equity was 21.18% vs. 9.91%. | |||
• | Book value per share rose to $7.37. |
BankAtlantic:
• | Business segment net income of $14.0 million vs. $13.0 million, an increase of 7.7%. | |||
• | Return on average tangible assets was 1.20% vs. 1.00%. | |||
• | Return on tangible equity was 13.68% vs. 13.18%. | |||
• | Non-interest income was $22.2 million vs. $21.5 million, an increase of 3%. | |||
• | Non-interest expense grew to $43.6 million vs. $40.7 million, an increase of 7%. |
Ryan Beck & Co.:
• | Business segment income from continuing operations increased to $7.0 million vs. $0.9 million, an increase of 658% over the second quarter, 2003. | |||
• | Return on equity from continuing operations was 33.07% vs. 5.26%. | |||
• | Total operating revenues increased to $65.9 million vs. $53.4 million, an increase of 23%. | |||
• | Principal transactions were $21.7 million vs. $24.1 million. | |||
• | Investment banking revenue increased to $18.0 million vs. $5.1 million, an increase of 252%. | |||
• | Commission income increased to $22.2 million vs. $21.6 million, an increase of 3%. |
Year to Date 2004 Compared to Year to Date 2003
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BankAtlantic Bancorp — consolidated (adjusted for Levitt Corporation spin-off):
• | Income from continuing operations was $38.8 million vs. $20.6 million. Excluding the effect of a litigation settlement and costs associated with the early redemption of debt, operating net income would have been $31.6 million vs. $21.7 million, an increase of 46%. | |||
• | Diluted earnings per share from continuing operations were $0.61 vs. $0.34, an increase of 79%. The effect of the non-recurring transactions was $0.12 in the current period and $(0.01) last year. | |||
• | Return from continuing operations on average tangible equity was 23.17% vs. 11.06%. Excluding the non-recurring expenses, the return on average tangible equity was 18.90% vs. 16.05%. |
BankAtlantic:
• | Business segment net income of $17.3 million vs. $24.4 million. The 2004 period includes a $7.6 million after-tax expense related to the prepayment of “high cost” FHLB advances. | |||
• | Return on average tangible assets was 0.76% vs. 0.97%. Excluding the prepayment expenses, the return on tangible assets was 1.09% for the current period. | |||
• | Return on tangible equity was 8.45% vs. 12.52%. Excluding the prepayment expenses, the return on tangible equity was 12.17% for the current period. | |||
• | Non-interest income was $40.4 million vs. $36.6 million, an increase of 10%. | |||
• | Non-interest expense grew to $97.7 million vs. $77.0 million. Included in the current period is an $11.7 million expense associated with the prepayment of FHLB Advances. Excluding the prepayment charge, expenses increased 12%. |
Ryan Beck & Co.:
• | Business segment net income from continuing operations increased to $12.1 million vs. $2.7 million. | |||
• | Return on equity from continuing operations was 28.62% vs. 7.81%. | |||
• | Total operating revenues increased to $131.7 million vs. $108.7 million, an increase of 21%. |
BankAtlantic Bancorpwill host an investor and media teleconference call and webcast on Thursday, July 22, 2004 at 11:00 a.m. Eastern Time.
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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 number8593300.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Friday, August 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:8593300.
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. Eastern Time, Friday, August 20, 2004.
BankAtlantic Bancorp’s Second Quarter, 2004 earnings results press release and financial summary, as well as the Supplemental Financials (a detailed summary of significant financial events and extensive business segment financial data), are available on its website at: www.BankAtlanticBancorp.com.
• | To view the press release and financial summary, 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. |
Copies of BankAtlantic Bancorp’s Second Quarter, 2004 earnings results press release and financial summary, and the Supplemental Financials are also 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 diversified financial services holding company and the parent company of BankAtlantic and Ryan Beck & Co. Through these subsidiaries, BankAtlantic Bancorp
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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 — 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 including a Miami-Dade branch open until midnight, free online banking, Totally Free Change Exchange coin counters, 24/7 call center service and free retail and business checking with a free gift.
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, and consulting and financial advisory services to financial institutions and middle market companies. Ryan Beck & Co. also provides independent research in the financial institutions, healthcare, technology, and consumer product industries. Ryan Beck & Co. 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 button on www.BankAtlanticBancorp.com
BankAtlantic Bancorp Contact Info:
Investor Relations:
Leo Hinkley, Senior 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
Investor & Corporate Communications:
Adrienne Zvi
Phone: (954) 760-5241, Fax: (954) 760-5415
Email: CorpComm@BankAtlanticBancorp.com
Sharon Lyn
Phone: (954) 760-5402, Fax: (954) 760-5415
Email: slyn@BankAtlantic.com
BankAtlantic, “Florida’s Most Convenient Bank,”Contact Info:
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Public Relations:
Hattie Harvey
Telephone: (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
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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. When used in this press release, 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 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; as well as the impact of regulatory or accounting issues, including the impact of periodic testing of goodwill and other intangible assets for impairment; and achieving the benefits of the prepayment of the Federal Home Loan Bank advances. Further, this press release contains forward-looking statements relating to BankAtlantic’s new branch, de novo expansion strategy and its renovation and branch “branding” initiative which are subject to a number of risks and uncertainties. These include, but are not limited to: regulatory issues, that the number of new branches
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may be less than anticipated, and that the new branch, de novo expansion strategy and renovation and branch “branding” initiative will not be successful or will not produce results which justify their costs. 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 other new lines of business including its Washington Crossing Advisors Conquest Program, uncertainties associated with the Gruntal litigation; that the relocation of its headquarters, new branch office in Cherry Hill, N.J., or additional personnel added to its investment research department are not successful or do not produce results which justify their costs; and additional risks and uncertainties that are subject to change and 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 | For the Six Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands except share data and ratios) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 6/30/2004 | 6/30/2003 | |||||||||||||||||||||||||||||
Current Earnings: | ||||||||||||||||||||||||||||||||||||
Net income (GAAP basis) | 18,260 | 20,524 | 17,642 | 18,508 | 17,209 | 38,784 | 31,567 | |||||||||||||||||||||||||||||
Income from continuing operations (GAAP basis) | (note 1) | $ | 18,260 | 20,524 | 7,826 | 10,144 | 9,809 | 38,784 | 20,627 | |||||||||||||||||||||||||||
Operating net income | (note 2) | $ | 18,260 | 13,371 | 13,582 | 11,470 | 10,880 | 31,631 | 21,698 | |||||||||||||||||||||||||||
Average Common Shares Outstanding: | ||||||||||||||||||||||||||||||||||||
Basic | 59,343,940 | 59,257,270 | 58,891,273 | 58,646,254 | 58,321,020 | 59,300,605 | 58,246,733 | |||||||||||||||||||||||||||||
Diluted | 62,807,683 | 63,193,034 | 61,852,217 | 61,343,946 | 61,898,924 | 62,979,163 | 63,047,682 | |||||||||||||||||||||||||||||
Key Performance Ratios (GAAP basis): | ||||||||||||||||||||||||||||||||||||
Basic earnings per share | 0.31 | 0.35 | 0.30 | 0.32 | 0.30 | 0.65 | 0.54 | |||||||||||||||||||||||||||||
Diluted earnings per share * | 0.29 | 0.32 | 0.28 | 0.30 | 0.28 | 0.61 | 0.51 | |||||||||||||||||||||||||||||
Basic earnings per share from continuing operations | $ | 0.31 | 0.35 | 0.13 | 0.17 | 0.17 | 0.65 | 0.35 | ||||||||||||||||||||||||||||
Diluted earnings per share from continuing operations * | $ | 0.29 | 0.32 | 0.12 | 0.16 | 0.16 | 0.61 | 0.34 | ||||||||||||||||||||||||||||
Return on average tangible assets from cont ops | (note 3) | % | 1.48 | 1.75 | 0.61 | 0.74 | 0.69 | 1.61 | 0.74 | |||||||||||||||||||||||||||
Return on average tangible equity from cont ops | (note 3) | % | 21.18 | 24.97 | 7.23 | 9.77 | 9.91 | 23.17 | 11.06 | |||||||||||||||||||||||||||
Key Performance Ratios (Operating basis): | ||||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.31 | 0.23 | 0.23 | 0.20 | 0.19 | 0.53 | 0.37 | ||||||||||||||||||||||||||||
Diluted earnings per share * | $ | 0.29 | 0.21 | 0.22 | 0.19 | 0.18 | 0.49 | 0.35 | ||||||||||||||||||||||||||||
Return on average tangible assets | (note 3,4) | % | 1.48 | 1.14 | 1.14 | 0.89 | 0.81 | 1.31 | 0.83 | |||||||||||||||||||||||||||
Return on average tangible equity | (note 3,4) | % | 21.18 | 16.27 | 17.20 | 15.23 | 15.09 | 18.90 | 16.05 | |||||||||||||||||||||||||||
* Diluted earnings per share calculation adds back: | ||||||||||||||||||||||||||||||||||||
Interest expense net of tax on convertible securities, if dilutive | $ | — | — | — | — | 129 | — | 569 | ||||||||||||||||||||||||||||
Subsidiaries stock options, if dilutive | (273 | ) | (192 | ) | (104 | ) | (83 | ) | (27 | ) | (472 | ) | (74 | ) | ||||||||||||||||||||||
Average Balance Sheet Data: | ||||||||||||||||||||||||||||||||||||
Assets | $ | 5,022,805 | 4,791,753 | 5,221,228 | 5,579,697 | 5,787,226 | 4,907,291 | 5,640,395 | ||||||||||||||||||||||||||||
Tangible assets | (note 3) | $ | 4,934,771 | 4,703,305 | 5,132,341 | 5,490,370 | 5,696,656 | 4,819,050 | 5,549,043 | |||||||||||||||||||||||||||
Tangible assets excluding Levitt | (note 3) | $ | 4,934,771 | 4,703,305 | 4,751,321 | 5,141,183 | 5,371,749 | 4,819,050 | 5,237,616 | |||||||||||||||||||||||||||
Loans | $ | 3,777,452 | 3,730,782 | 3,698,377 | 3,942,124 | 3,983,528 | 3,754,117 | 3,809,454 | ||||||||||||||||||||||||||||
Investments | $ | 818,812 | 668,269 | 773,271 | 901,283 | 1,087,937 | 743,550 | 1,109,716 | ||||||||||||||||||||||||||||
Deposits and escrows | $ | 3,205,328 | 3,064,750 | 3,032,170 | 2,951,536 | 2,925,061 | 3,135,040 | 2,888,546 | ||||||||||||||||||||||||||||
Stockholders’ equity | $ | 435,852 | 423,482 | 521,393 | 503,274 | 480,115 | 429,679 | 472,456 | ||||||||||||||||||||||||||||
Tangible stockholders’ equity | (note 3) | $ | 344,832 | 328,714 | 433,103 | 415,294 | 396,050 | 334,806 | 372,902 | |||||||||||||||||||||||||||
Tangible stockholders’ equity excluding Levitt | (note 3) | $ | 344,832 | 328,714 | 315,808 | 301,310 | 288,452 | 334,806 | 270,333 |
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 equity security litigation gain 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 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) | 6/30/2004 | 12/31/2003 | 6/30/2003 | |||||||||
ASSETS | ||||||||||||
Cash and due from depository institutions | $ | 132,927 | 119,882 | 127,150 | ||||||||
Securities purchased under resell agreements and federal funds | 399 | — | — | |||||||||
Securities available for sale (at fair value) | 694,554 | 358,511 | 509,572 | |||||||||
Securities owned (at fair value) | 120,953 | 124,565 | 224,405 | |||||||||
Investment securities and tax certificates (approximate fair value: $194,046, $192,706 and $208,622) | 194,046 | 192,706 | 208,621 | |||||||||
Loans receivable, net of allowance for loan losses of $46,737, $45,595 and $49,576 | 3,899,099 | 3,686,153 | 4,024,344 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 44,154 | 40,325 | 69,131 | |||||||||
Accrued interest receivable | 27,864 | 27,866 | 34,162 | |||||||||
Real estate held for development and sale | 25,077 | 21,803 | 241,346 | |||||||||
Investments and advances in unconsolidated subsidiaries | 7,910 | 7,910 | 99,094 | |||||||||
Office properties and equipment, net | 106,105 | 93,577 | 92,599 | |||||||||
Deferred tax asset, net | 22,288 | 22,999 | 34,527 | |||||||||
Goodwill | 76,674 | 76,674 | 76,674 | |||||||||
Core deposit intangible asset | 11,121 | 11,985 | 12,864 | |||||||||
Due from clearing agent | 16,048 | — | — | |||||||||
Other assets | 49,159 | 46,593 | 64,364 | |||||||||
Total assets | $ | 5,428,378 | 4,831,549 | 5,818,853 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits Interest free checking | $ | 787,819 | 645,036 | 546,805 | ||||||||
NOW accounts | 584,658 | 533,888 | 455,514 | |||||||||
Savings accounts | 251,218 | 208,966 | 191,586 | |||||||||
Insured money fund savings | 906,865 | 865,590 | 850,579 | |||||||||
Certificate accounts | 719,545 | 804,662 | 859,896 | |||||||||
Total deposits | 3,250,105 | 3,058,142 | 2,904,380 | |||||||||
Advances from FHLB | 883,727 | 782,205 | 1,332,300 | |||||||||
Securities sold under agreements to repurchase | 374,824 | 138,809 | 217,950 | |||||||||
Federal funds purchased | 20,000 | — | 155,000 | |||||||||
Subordinated debentures, notes and bonds payable | 36,395 | 36,595 | 142,461 | |||||||||
Junior subordinated debentures | 263,266 | 263,266 | 263,218 | |||||||||
Securities sold not yet purchased | 51,321 | 37,813 | 34,968 | |||||||||
Due to clearing agent | — | 8,583 | 112,410 | |||||||||
Other liabilities | 108,406 | 92,684 | 160,335 | |||||||||
Total liabilities | 4,988,044 | 4,418,097 | 5,323,022 | |||||||||
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 54,903,283, 54,396,824 and 53,753,721 shares | 549 | 544 | 538 | |||||||||
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 | 258,258 | 259,770 | 254,532 | |||||||||
Unearned compensation — restricted stock grants | (1,090 | ) | (1,178 | ) | (1,133 | ) | ||||||
Retained earnings | 183,170 | 148,311 | 241,632 | |||||||||
Total stockholders’ equity before accumulated other comprehensive income | 440,936 | 407,496 | 495,618 | |||||||||
Accumulated other comprehensive income (loss) | (602 | ) | 5,956 | 213 | ||||||||
Total stockholders’ equity | 440,334 | 413,452 | 495,831 | |||||||||
Total liabilities and stockholders’ equity | $ | 5,428,378 | 4,831,549 | 5,818,853 | ||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
For The Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
(in thousands) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 6/30/2004 | 6/30/2003 | |||||||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Interest and fees on loans and leases | $ | 48,034 | 48,936 | 49,647 | 50,668 | 54,191 | 96,970 | 107,131 | ||||||||||||||||||||||||
Interest on securities available for sale | 5,194 | 3,653 | 3,372 | 4,598 | 7,686 | 8,847 | 16,343 | |||||||||||||||||||||||||
Interest and dividends on investment and securities owned | 6,879 | 7,040 | 7,833 | 7,545 | 7,344 | 13,919 | 14,712 | |||||||||||||||||||||||||
Total interest income | 60,107 | 59,629 | 60,852 | 62,811 | 69,221 | 119,736 | 138,186 | |||||||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Interest on deposits | 6,788 | 6,973 | 7,504 | 7,758 | 9,758 | 13,761 | 20,927 | |||||||||||||||||||||||||
Interest on advances from FHLB | 7,769 | 9,098 | 11,667 | 15,025 | 15,291 | 16,867 | 30,607 | |||||||||||||||||||||||||
Interest on short-term borrowed funds | 632 | 250 | 289 | 558 | 1,248 | 882 | 2,067 | |||||||||||||||||||||||||
Interest on long-term debt | 4,912 | 4,827 | 5,399 | 4,257 | 4,531 | 9,739 | 8,352 | |||||||||||||||||||||||||
Capitalized interest on real estate developments | (346 | ) | (307 | ) | (312 | ) | (286 | ) | (256 | ) | (653 | ) | (595 | ) | ||||||||||||||||||
Total interest expense | 19,755 | 20,841 | 24,547 | 27,312 | 30,572 | 40,596 | 61,358 | |||||||||||||||||||||||||
NET INTEREST INCOME | 40,352 | 38,788 | 36,305 | 35,499 | 38,649 | 79,140 | 76,828 | |||||||||||||||||||||||||
Provision (recovery) for loan losses | (1,963 | ) | (859 | ) | (1,811 | ) | (1,076 | ) | 1,490 | (2,822 | ) | 2,340 | ||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 42,315 | 39,647 | 38,116 | 36,575 | 37,159 | 81,962 | 74,488 | |||||||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Service charges on deposits | 13,028 | 11,277 | 11,481 | 10,925 | 9,605 | 24,305 | 18,163 | |||||||||||||||||||||||||
Other service charges and fees | 6,431 | 4,637 | 4,704 | 4,625 | 6,071 | 11,068 | 9,989 | |||||||||||||||||||||||||
Broker/dealer revenue and other commissions | 61,925 | 62,445 | 55,566 | 49,992 | 50,565 | 124,370 | 102,230 | |||||||||||||||||||||||||
Securities activities, net | 3 | 72 | (1,582 | ) | (336 | ) | (19 | ) | 75 | 365 | ||||||||||||||||||||||
Equity security litigation settlement gain | — | 22,840 | — | — | — | 22,840 | — | |||||||||||||||||||||||||
Gain on sales of loans | 116 | 129 | 108 | 10 | 1 | 245 | 4 | |||||||||||||||||||||||||
Income from real estate operations | 683 | 305 | 354 | 66 | 4,136 | 988 | 5,222 | |||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 118 | 118 | 119 | 106 | 118 | 236 | 200 | |||||||||||||||||||||||||
Other | 3,041 | 2,542 | 2,492 | 2,405 | 2,125 | 5,583 | 4,506 | |||||||||||||||||||||||||
Total non-interest income | 85,345 | 104,365 | 73,242 | 67,793 | 72,602 | 189,710 | 140,679 | |||||||||||||||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||||||||||||||||||
Employee compensation and benefits | 63,538 | 67,180 | 56,795 | 55,318 | 57,415 | 130,718 | 114,827 | |||||||||||||||||||||||||
Occupancy and equipment | 11,046 | 10,250 | 10,522 | 10,161 | 9,615 | 21,296 | 19,353 | |||||||||||||||||||||||||
Advertising and promotion | 5,630 | 4,694 | 3,110 | 2,989 | 3,819 | 10,324 | 6,626 | |||||||||||||||||||||||||
Professional fees | 2,610 | 2,737 | 5,243 | 4,239 | 3,715 | 5,347 | 6,830 | |||||||||||||||||||||||||
Communications | 3,106 | 3,253 | 2,917 | 2,821 | 4,216 | 6,359 | 8,045 | |||||||||||||||||||||||||
Floor broker and clearing fees | 2,438 | 2,802 | 2,506 | 2,327 | 2,236 | 5,240 | 4,394 | |||||||||||||||||||||||||
Cost associated with debt redemption | — | 11,741 | 8,855 | 2,040 | 1,648 | 11,741 | 1,648 | |||||||||||||||||||||||||
Other | 9,534 | 9,357 | 7,391 | 8,588 | 11,826 | 18,891 | 21,327 | |||||||||||||||||||||||||
Total non-interest expenses | 97,902 | 112,014 | 97,339 | 88,483 | 94,490 | 209,916 | 183,050 | |||||||||||||||||||||||||
Income from continuing operations before income taxes | 29,758 | 31,998 | 14,019 | 15,885 | 15,271 | 61,756 | 32,117 | |||||||||||||||||||||||||
Provision for income taxes | 11,498 | 11,474 | 6,193 | 5,741 | 5,462 | 22,972 | 11,490 | |||||||||||||||||||||||||
Income from continuing operations | 18,260 | 20,524 | 7,826 | 10,144 | 9,809 | 38,784 | 20,627 | |||||||||||||||||||||||||
Discontinued operations, net of tax * | — | — | 9,816 | 8,364 | 7,400 | — | 10,940 | |||||||||||||||||||||||||
GAAP net income | (note1) | $ | 18,260 | 20,524 | 17,642 | 18,508 | 17,209 | 38,784 | 31,567 | |||||||||||||||||||||||
Reconciliation of Operating and GAAP Income from continuing operations | ||||||||||||||||||||||||||||||||
GAAP income from continuing operations | $ | 18,260 | 20,524 | 7,826 | 10,144 | 9,809 | 38,784 | 20,627 | ||||||||||||||||||||||||
Costs associated with debt redemption | — | 7,632 | 5,756 | 1,326 | 1,071 | 7,632 | 1,071 | |||||||||||||||||||||||||
Equity security litigation settlement gain | — | (14,785 | ) | — | — | — | (14,785 | ) | — | |||||||||||||||||||||||
Operating net income | (note2) | $ | 18,260 | 13,371 | 13,582 | 11,470 | 10,880 | 31,631 | 21,698 | |||||||||||||||||||||||
* | 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) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | |||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,386,482 | 1,326,061 | 1,403,686 | 1,714,774 | 1,880,890 | ||||||||||||||||||
Commercial real estate | 1,650,763 | 1,701,012 | 1,660,004 | 1,621,407 | 1,508,064 | |||||||||||||||||||
Consumer | 403,824 | 374,222 | 341,246 | 319,269 | 306,740 | |||||||||||||||||||
Lease financing | 11,526 | 13,642 | 16,293 | 18,935 | 22,713 | |||||||||||||||||||
Commercial business | 142,686 | 141,955 | 111,705 | 108,714 | 106,323 | |||||||||||||||||||
Small business | 182,171 | 173,890 | 165,443 | 159,025 | 158,798 | |||||||||||||||||||
Total Loans | 3,777,452 | 3,730,782 | 3,698,377 | 3,942,124 | 3,983,528 | |||||||||||||||||||
Investments — taxable | 745,854 | 664,907 | 773,271 | 901,283 | 1,087,937 | |||||||||||||||||||
Investments — tax exempt | 72,958 | 3,362 | — | — | — | |||||||||||||||||||
Total interest earning assets | 4,596,264 | 4,399,051 | 4,471,648 | 4,843,407 | 5,071,465 | |||||||||||||||||||
Goodwill and core deposit intangibles | 88,034 | 88,448 | 88,887 | 89,327 | 90,570 | |||||||||||||||||||
Other non-interest earning assets | 338,507 | 304,254 | 660,693 | 646,963 | 625,191 | |||||||||||||||||||
Total assets | $ | 5,022,805 | 4,791,753 | 5,221,228 | 5,579,697 | 5,787,226 | ||||||||||||||||||
Tangible assets | (note 3) | $ | 4,934,771 | 4,703,305 | 5,132,341 | 5,490,370 | 5,696,656 | |||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 242,506 | 220,005 | 205,564 | 197,778 | 185,685 | ||||||||||||||||||
NOW | 586,259 | 543,619 | 507,876 | 473,741 | 454,108 | |||||||||||||||||||
Money funds | 912,065 | 866,767 | 879,095 | 874,789 | 836,246 | |||||||||||||||||||
Certificates of deposit | 709,523 | 769,949 | 815,454 | 837,221 | 913,564 | |||||||||||||||||||
Total interest bearing deposits | 2,450,353 | 2,400,340 | 2,407,989 | 2,383,529 | 2,389,603 | |||||||||||||||||||
Short-term borrowed funds | 269,423 | 128,130 | 131,095 | 228,427 | 385,604 | |||||||||||||||||||
FHLB advances | 696,661 | 760,973 | 937,888 | 1,249,074 | 1,313,896 | |||||||||||||||||||
Long-term debt | 299,931 | 299,878 | 413,154 | 407,538 | 409,567 | |||||||||||||||||||
Total interest bearing liabilities | 3,716,368 | 3,589,321 | 3,890,126 | 4,268,568 | 4,498,670 | |||||||||||||||||||
Non-interest bearing deposits | 754,975 | 664,410 | 624,181 | 568,007 | 535,458 | |||||||||||||||||||
Non-interest bearing other liabilities | 115,610 | 114,540 | 185,528 | 239,848 | 272,983 | |||||||||||||||||||
Total liabilities | 4,586,953 | 4,368,271 | 4,699,835 | 5,076,423 | 5,307,111 | |||||||||||||||||||
Stockholders’ equity | 435,852 | 423,482 | 521,393 | 503,274 | 480,115 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,022,805 | 4,791,753 | 5,221,228 | 5,579,697 | 5,787,226 | ||||||||||||||||||
Other comprehensive (loss) income in stockholders’ equity | $ 2,986 | 6,320 | (597 | ) | (1,347 | ) | (6,505 | ) | ||||||||||||||||
Tangible stockholders’ equity | (note 3) | $ | 344,832 | 328,714 | 433,103 | 415,294 | 396,050 | |||||||||||||||||
Period End | ||||||||||||||||||||||||
Total loans, net | $ | 3,899,099 | 3,674,173 | 3,686,153 | 3,739,638 | 4,024,344 | ||||||||||||||||||
Total assets | 5,428,378 | 4,750,483 | 4,831,549 | 5,197,060 | 5,818,851 | |||||||||||||||||||
Total stockholders’ equity | 440,334 | 429,577 | 413,452 | 513,669 | 495,831 | |||||||||||||||||||
Common shares outstanding | 59,779,407 | 59,207,954 | 59,272,948 | 58,940,200 | 58,629,845 | |||||||||||||||||||
Cash dividends | 1,972,775 | 1,953,863 | 1,956,008 | 1,945,268 | 1,817,525 | |||||||||||||||||||
Common stock cash dividends per share | 0.033 | 0.033 | 0.033 | 0.033 | 0.031 | |||||||||||||||||||
Closing stock price (1) | 18.45 | 16.96 | 14.02 | 10.52 | 8.78 | |||||||||||||||||||
High stock price for the quarter (1) | 18.53 | 19.00 | 14.58 | 11.64 | 9.22 | |||||||||||||||||||
Low stock price for the quarter (1) | 14.37 | 13.70 | 10.44 | 8.68 | 7.09 | |||||||||||||||||||
Book value per share — historical | 7.37 | 7.26 | 6.98 | 8.72 | 8.46 |
(1) | adjusted to reflect the Levitt spin-off. |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||
(In thousands) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 6/30/2004 | 6/30/2003 | |||||||||||||||||||||
Net interest income | $ | 41,344 | 39,795 | 37,326 | 36,558 | 40,716 | 81,139 | 80,215 | ||||||||||||||||||||
Provision (recovery) for loan losses | (1,963 | ) | (859 | ) | (1,811 | ) | (1,076 | ) | 1,490 | (2,822 | ) | 2,340 | ||||||||||||||||
Net Interest income after provision for loan losses | 43,307 | 40,654 | 39,137 | 37,634 | 39,226 | 83,961 | 77,875 | |||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 13,028 | 11,277 | 11,481 | 10,925 | 9,605 | 24,305 | 18,163 | |||||||||||||||||||||
Other service charges and fees | 6,431 | 4,637 | 4,704 | 4,625 | 6,071 | 11,068 | 9,989 | |||||||||||||||||||||
Securities losses | — | (3 | ) | (1,582 | ) | (336 | ) | (19 | ) | (3 | ) | (40 | ) | |||||||||||||||
Gain on sales of loans | 116 | 129 | 108 | 10 | 1 | 245 | 4 | |||||||||||||||||||||
Income from real estate operations | 683 | 305 | 354 | 66 | 4,136 | 988 | 5,222 | |||||||||||||||||||||
Other non-interest income | 1,911 | 1,875 | 1,858 | 1,864 | 1,700 | 3,786 | 3,270 | |||||||||||||||||||||
Total non-interest income | 22,169 | 18,220 | 16,923 | 17,154 | 21,494 | 40,389 | 36,608 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 23,135 | 23,029 | 20,171 | 19,387 | 20,466 | 46,164 | 39,934 | |||||||||||||||||||||
Occupancy and equipment | 7,809 | 7,146 | 7,092 | 6,874 | 6,715 | 14,955 | 13,363 | |||||||||||||||||||||
Advertising | 4,161 | 3,463 | 2,517 | 2,444 | 2,874 | 7,624 | 4,473 | |||||||||||||||||||||
Professional fees | 807 | 1,258 | 1,129 | 1,139 | 1,025 | 2,065 | 2,121 | |||||||||||||||||||||
Cost associated with debt redemption | — | 11,741 | 8,855 | 2,040 | — | 11,741 | — | |||||||||||||||||||||
Other | 7,658 | 7,495 | 5,702 | 7,275 | 9,578 | 15,153 | 17,097 | |||||||||||||||||||||
Total non-interest expense | 43,570 | 54,132 | 45,466 | 39,159 | 40,658 | 97,702 | 76,988 | |||||||||||||||||||||
Income from bank operations business segment before income taxes | 21,906 | 4,742 | 10,594 | 15,629 | 20,062 | 26,648 | 37,495 | |||||||||||||||||||||
Provision for income taxes | 7,911 | 1,436 | 2,780 | 5,675 | 7,103 | 9,347 | 13,134 | |||||||||||||||||||||
Net income from bank operations business segment | $ | 13,995 | 3,306 | 7,814 | 9,954 | 12,959 | 17,301 | 24,361 | ||||||||||||||||||||
Reconciliation of Operating and business segment net income | ||||||||||||||||||||||||||||
Business segment income | $ | 13,995 | 3,306 | 7,814 | 9,954 | 12,959 | 17,301 | 24,361 | ||||||||||||||||||||
Cost associated with debt redemption | — | 7,632 | 5,756 | 1,326 | — | 7,632 | — | |||||||||||||||||||||
Operating net income | $ | 13,995 | 10,938 | 13,570 | 11,280 | 12,959 | 24,933 | 24,361 | ||||||||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 6/30/2004 | 6/30/2003 | ||||||||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||||||
Average total interest earning assets ( in 000’s) | $ | 4,422,181 | 4,220,559 | 4,381,497 | 4,706,976 | 4,930,653 | 4,321,379 | 4,783,554 | ||||||||||||||||||||||||
Average total interest bearing liabilities (in 000’s) | $ | 3,483,903 | 3,347,890 | 3,554,854 | 3,924,292 | 4,174,158 | 3,415,897 | 4,077,307 | ||||||||||||||||||||||||
GAAP efficiency ratio | % | 68.60 | 93.31 | 83.81 | 72.91 | 65.36 | 80.39 | �� | 65.90 | |||||||||||||||||||||||
GAAP return on average assets | % | 1.18 | 0.29 | 0.66 | 0.79 | 0.99 | 0.74 | 0.95 | ||||||||||||||||||||||||
GAAP return on average equity | % | 11.38 | 2.67 | 6.42 | 8.26 | 11.03 | 7.01 | 10.47 | ||||||||||||||||||||||||
Operating efficiency ratio (1) | % | 68.60 | 73.07 | 67.49 | 69.11 | 65.36 | 70.73 | 65.90 | ||||||||||||||||||||||||
Operating return on average assets (1) | % | 1.18 | 0.96 | 1.15 | 0.90 | 0.99 | 1.07 | 0.95 | ||||||||||||||||||||||||
Operating return on average equity (1) | % | 11.38 | 8.82 | 11.15 | 9.36 | 11.03 | 10.10 | 10.47 | ||||||||||||||||||||||||
Net interest margin | % | 3.73 | 3.73 | 3.39 | 3.10 | 3.27 | 3.73 | 3.31 | ||||||||||||||||||||||||
Yield on earning assets | % | 5.16 | 5.34 | 5.20 | 5.11 | 5.46 | 5.25 | 5.61 | ||||||||||||||||||||||||
Cost of interest-bearing liabilities | % | 1.82 | 2.02 | 2.24 | 2.41 | 2.58 | 1.92 | 2.70 | ||||||||||||||||||||||||
Interest spread | % | 3.34 | 3.32 | 2.96 | 2.70 | 2.88 | 3.33 | 2.91 |
(1) | Ratios have been adjusted to exclude costs associated with debt redemptions. |
Condensed Statements of Financial Condition (Unaudited)
As Of | ||||||||||||||||||||||||
(In thousands) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Loans receivable | $ | 3,852,549 | 3,621,787 | 3,630,682 | 3,767,935 | 4,070,332 | ||||||||||||||||||
Held to maturity securities | 236,400 | 167,615 | 231,231 | 212,236 | 274,352 | |||||||||||||||||||
Available for sale securities | 639,581 | 338,639 | 339,362 | 337,147 | 503,514 | |||||||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||||||
Core deposit intangible asset | 11,121 | 11,546 | 11,985 | 12,424 | 12,864 | |||||||||||||||||||
Other assets | 311,755 | 284,289 | 283,101 | 286,709 | 289,764 | |||||||||||||||||||
Total assets | $ | 5,121,895 | 4,494,365 | 4,566,850 | 4,686,940 | 5,221,315 | ||||||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||
Interest free checking | $ | 787,945 | 748,533 | 645,325 | 594,685 | 546,805 | ||||||||||||||||||
NOW accounts | 584,658 | 567,498 | 533,888 | 480,837 | 455,514 | |||||||||||||||||||
Savings accounts | 251,218 | 233,832 | 208,966 | 202,354 | 191,586 | |||||||||||||||||||
Total low costs deposits | 1,623,821 | 1,549,863 | 1,388,179 | 1,277,876 | 1,193,905 | |||||||||||||||||||
Insured money fund savings | 906,865 | 870,447 | 865,590 | 878,281 | 850,579 | |||||||||||||||||||
Certificate accounts | 719,545 | 723,256 | 804,662 | 826,045 | 859,896 | |||||||||||||||||||
Total deposits | 3,250,231 | 3,143,566 | 3,058,431 | 2,982,202 | 2,904,380 | |||||||||||||||||||
Advances from Federal Home Loan Bank | 883,727 | 591,466 | 782,205 | 956,820 | 1,332,300 | |||||||||||||||||||
Short term borrowings | 401,459 | 191,469 | 161,597 | 167,983 | 401,298 | |||||||||||||||||||
Long term debt | 36,295 | 36,582 | 35,334 | 36,077 | 35,112 | |||||||||||||||||||
Other liabilities | 55,020 | 42,243 | 39,427 | 62,389 | 70,228 | |||||||||||||||||||
Total liabilities | 4,626,732 | 4,005,326 | 4,076,994 | 4,205,471 | 4,743,318 | |||||||||||||||||||
Stockholder’s equity | 495,163 | 489,039 | 489,856 | 481,469 | 477,997 | |||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,121,895 | 4,494,365 | 4,566,850 | 4,686,940 | 5,221,315 | ||||||||||||||||||
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
June 30, 2004 | June 30, 2003 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,386,482 | 15,781 | 4.55 | % | $ | 1,880,890 | 22,556 | 4.80 | % | ||||||||||||||
Commercial real estate | 1,641,438 | 22,670 | 5.52 | 1,554,965 | 23,374 | 6.01 | ||||||||||||||||||
Consumer | 403,824 | 4,067 | 4.03 | 306,740 | 3,520 | 4.59 | ||||||||||||||||||
Lease financing | 11,526 | 317 | 11.00 | 22,713 | 648 | 11.41 | ||||||||||||||||||
Commercial business | 103,780 | 1,589 | 6.12 | 106,323 | 1,496 | 5.63 | ||||||||||||||||||
Small business | 182,171 | 3,223 | 7.08 | 158,798 | 2,895 | 7.29 | ||||||||||||||||||
Total loans | 3,729,221 | 47,647 | 5.11 | 4,030,429 | 54,489 | 5.41 | ||||||||||||||||||
Investments — tax exempt | 72,675 | 938 | (1) | 5.17 | — | — | — | |||||||||||||||||
Investments — taxable | 620,285 | 8,505 | 5.48 | 900,224 | 12,848 | 5.71 | ||||||||||||||||||
Total interest earning assets | 4,422,181 | 57,090 | 5.16 | % | 4,930,653 | 67,337 | 5.46 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 81,849 | 83,591 | ||||||||||||||||||||||
Other non-interest earning assets | 251,755 | 237,074 | ||||||||||||||||||||||
Total Assets | $ | 4,755,785 | $ | 5,251,318 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 242,506 | 161 | 0.27 | % | $ | 185,685 | 268 | 0.58 | % | ||||||||||||||
NOW | 586,259 | 534 | 0.37 | 454,108 | 561 | 0.50 | ||||||||||||||||||
Money funds | 912,065 | 2,116 | 0.93 | 836,246 | 2,625 | 1.26 | ||||||||||||||||||
Certificate accounts | 709,523 | 3,977 | 2.25 | 913,564 | 6,304 | 2.77 | ||||||||||||||||||
Total deposits | 2,450,353 | 6,788 | 1.11 | 2,389,603 | 9,758 | 1.64 | ||||||||||||||||||
Short-term borrowed funds | 300,460 | 702 | 0.94 | 436,975 | 1,337 | 1.23 | ||||||||||||||||||
Advances from FHLB | 696,661 | 7,769 | 4.49 | 1,313,896 | 15,291 | 4.67 | ||||||||||||||||||
Long-term debt | 36,429 | 505 | 5.58 | 33,684 | 491 | 5.85 | ||||||||||||||||||
Total interest bearing liabilities | 3,483,903 | 15,764 | 1.82 | 4,174,158 | 26,877 | 2.58 | ||||||||||||||||||
Non-interest bearing deposits | 755,593 | 535,567 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 24,585 | 71,454 | ||||||||||||||||||||||
Total Liabilities | 4,264,081 | 4,781,179 | ||||||||||||||||||||||
Stockholder’s equity | 491,704 | 470,139 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 4,755,785 | $ | 5,251,318 | ||||||||||||||||||||
Net interest income/ net interest spread | $ | 41,326 | 3.34 | % | $ | 40,460 | 2.88 | % | ||||||||||||||||
Capitalized interest from real estate operations | 346 | 256 | ||||||||||||||||||||||
Net interest income (tax equivalent) | 41,672 | 40,716 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 5.16 | % | 5.46 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 1.43 | 2.19 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.73 | % | 3.27 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations
Average Balance Sheet — Yield / Rate Analysis
For the Six Months Ended | ||||||||||||||||||||||||
June 30, 2004 | June 30, 2003 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,356,271 | 31,722 | 4.68 | % | $ | 1,721,109 | 44,142 | 5.13 | % | ||||||||||||||
Commercial real estate | 1,665,700 | 46,364 | 5.57 | 1,542,751 | 46,241 | 5.99 | ||||||||||||||||||
Consumer | 389,023 | 7,967 | 4.10 | 301,735 | 6,988 | 4.63 | ||||||||||||||||||
Lease financing | 12,584 | 698 | 11.09 | 26,318 | 1,482 | 11.26 | ||||||||||||||||||
Commercial business | 101,369 | 3,089 | 6.09 | 103,553 | 2,945 | 5.69 | ||||||||||||||||||
Small business | 178,031 | 6,308 | 7.09 | 161,460 | 5,932 | 7.35 | ||||||||||||||||||
Total loans | 3,702,978 | 96,148 | 5.19 | 3,856,926 | 107,730 | 5.59 | ||||||||||||||||||
Investments — tax exempt | 38,019 | 989 | (1) | 5.20 | — | — | 0.00 | |||||||||||||||||
Investments — taxable | 580,382 | 16,314 | 5.62 | 926,628 | 26,536 | 5.73 | ||||||||||||||||||
Total interest earning assets | 4,321,379 | 113,451 | 5.25 | % | 4,783,554 | 134,266 | 5.61 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 82,056 | 84,170 | ||||||||||||||||||||||
Other non-interest earning assets | 245,915 | 249,449 | ||||||||||||||||||||||
Total Assets | $ | 4,649,350 | $ | 5,117,173 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 231,256 | 304 | 0.26 | % | $ | 178,531 | 584 | 0.66 | % | ||||||||||||||
NOW | 564,939 | 1,026 | 0.37 | 439,944 | 1,103 | 0.51 | ||||||||||||||||||
Money funds | 889,416 | 3,992 | 0.90 | 822,938 | 5,278 | 1.29 | ||||||||||||||||||
Certificate accounts | 739,736 | 8,439 | 2.29 | 940,069 | 13,962 | 3.00 | ||||||||||||||||||
Total deposits | 2,425,347 | 13,761 | 1.14 | 2,381,482 | 20,927 | 1.77 | ||||||||||||||||||
Short-term borrowed funds | 225,597 | 1,004 | 0.89 | 361,763 | 2,174 | 1.21 | ||||||||||||||||||
Advances from FHLB | 728,817 | 16,867 | 4.65 | 1,299,519 | 30,607 | 4.75 | ||||||||||||||||||
Long-term debt | 36,136 | 987 | 5.49 | 34,543 | 938 | 5.48 | ||||||||||||||||||
Total interest bearing liabilities | 3,415,897 | 32,619 | 1.92 | 4,077,307 | 54,646 | 2.70 | ||||||||||||||||||
Non-interest bearing deposits | 710,194 | 507,119 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 29,305 | 67,518 | ||||||||||||||||||||||
Total Liabilities | 4,155,396 | 4,651,944 | ||||||||||||||||||||||
Stockholder’s equity | 493,954 | 465,229 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 4,649,350 | $ | 5,117,173 | ||||||||||||||||||||
Net interest income/net interest spread | $ | 80,832 | 3.33 | % | $ | 79,620 | 2.91 | % | ||||||||||||||||
Capitalized interest from real estate operations | 653 | 595 | ||||||||||||||||||||||
Net interest income | 81,485 | 80,215 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 5.25 | % | 5.61 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 1.52 | 2.30 | ||||||||||||||||||||||
Net interest margin | 3.73 | % | 3.31 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
(in thousands) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 6/30/2004 | 6/30/2003 | |||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 45,383 | 45,595 | 48,202 | 49,576 | 48,695 | 45,595 | 48,022 | ||||||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||||||
Residential real estate | (124 | ) | (231 | ) | (320 | ) | (150 | ) | (98 | ) | (355 | ) | (212 | ) | ||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Commercial business | (80 | ) | (344 | ) | (1,306 | ) | (1,798 | ) | (536 | ) | (424 | ) | (2,989 | ) | ||||||||||||||||||
Consumer | (285 | ) | (248 | ) | (1,085 | ) | (260 | ) | (490 | ) | (533 | ) | (895 | ) | ||||||||||||||||||
Small business | (35 | ) | (44 | ) | (321 | ) | (334 | ) | (1,433 | ) | (79 | ) | (2,053 | ) | ||||||||||||||||||
Syndication | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Total charge-offs | (524 | ) | (867 | ) | (3,032 | ) | (2,542 | ) | (2,557 | ) | (1,391 | ) | (6,149 | ) | ||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||||||
Residential real estate | 217 | 26 | 184 | 424 | 61 | 243 | 118 | |||||||||||||||||||||||||
Commercial real estate | 2,050 | 1 | — | 1 | — | 2,051 | 1 | |||||||||||||||||||||||||
Commercial business | 828 | 559 | 466 | 492 | 694 | 1,387 | 1,361 | |||||||||||||||||||||||||
Consumer | 240 | 338 | 538 | 343 | 414 | 578 | 878 | |||||||||||||||||||||||||
Small business | 429 | 392 | 482 | 748 | 575 | 821 | 1,408 | |||||||||||||||||||||||||
Syndication | 77 | 198 | 566 | 236 | 204 | 275 | 2,331 | |||||||||||||||||||||||||
Total recoveries | 3,841 | 1,514 | 2,236 | 2,244 | 1,948 | 5,355 | 6,097 | |||||||||||||||||||||||||
Net (charge-offs) recoveries | 3,317 | 647 | (796 | ) | (298 | ) | (609 | ) | 3,964 | (52 | ) | |||||||||||||||||||||
Provision (recovery) for loan losses | (1,963 | ) | (859 | ) | (1,811 | ) | (1,076 | ) | 1,490 | (2,822 | ) | 2,340 | ||||||||||||||||||||
Adjustments to acquired loan losses | — | — | — | — | — | — | (734 | ) | ||||||||||||||||||||||||
Ending allowance for loan losses | $ | 46,737 | 45,383 | 45,595 | 48,202 | 49,576 | 46,737 | 49,576 | ||||||||||||||||||||||||
Annualized net charge-offs to average loans | % | (0.35 | ) | (0.07 | ) | 0.09 | 0.03 | 0.06 | (0.21 | ) | 0.00 | |||||||||||||||||||||
As of | ||||||||||||||||||||||||
6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | ||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||
Nonaccrual loans and tax certificates | $ | 13,288 | 12,279 | 11,687 | 12,586 | 14,201 | ||||||||||||||||||
Acquired nonaccrual loans | 9 | 10 | 10 | 314 | 409 | |||||||||||||||||||
Real estate owned, net of allowance | 1,321 | 1,667 | 2,422 | 8,904 | 8,157 | |||||||||||||||||||
Other repossessed assets | 0 | 0 | 0 | 274 | 435 | |||||||||||||||||||
Total nonperforming assets | $ | 14,618 | 13,956 | 14,119 | 22,078 | 23,202 | ||||||||||||||||||
Loan loss allowance to non performing assets | % | 319.72 | 325.19 | 322.93 | 218.33 | 213.67 | ||||||||||||||||||
Nonperforming assets to total loans and other assets | % | 0.35 | 0.36 | 0.36 | 0.56 | 0.54 | ||||||||||||||||||
Allowance for loan losses to total loans | % | 1.18 | 1.22 | 1.22 | 1.27 | 1.22 |
Ryan Beck & Co., Inc. Business Segment
Consolidated Statements of Operations and Statistics — Unaudited
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
(in thousands) | 6/31/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 6/30/2004 | 6/30/2003 | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Principal transactions | $ | 21,654 | 24,443 | 25,288 | 21,091 | 24,057 | 46,097 | 49,140 | ||||||||||||||||||||||||
Investment banking | 18,026 | 12,631 | 7,318 | 7,642 | 5,079 | 30,657 | 12,768 | |||||||||||||||||||||||||
Commissions | 22,245 | 25,371 | 22,963 | 21,258 | 21,603 | 47,616 | 40,955 | |||||||||||||||||||||||||
Interest, dividends and other | 3,949 | 3,416 | 3,683 | 3,450 | 2,662 | 7,365 | 5,821 | |||||||||||||||||||||||||
Total operating revenues | 65,874 | 65,861 | 59,252 | 53,441 | 53,401 | 131,735 | 108,684 | |||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Compensation, benefits | 40,297 | 44,042 | 36,619 | 35,924 | 36,892 | 84,339 | 74,815 | |||||||||||||||||||||||||
Professional fees | 1,330 | 1,045 | 3,775 | 2,638 | 2,332 | 2,375 | 4,054 | |||||||||||||||||||||||||
Communication | 3,106 | 3,253 | 2,916 | 2,822 | 4,216 | 6,359 | 8,045 | |||||||||||||||||||||||||
Occupancy and equipment | 3,236 | 3,103 | 3,430 | 3,287 | 2,900 | 6,339 | 5,990 | |||||||||||||||||||||||||
Floor broker and clearing fees | 2,438 | 2,802 | 2,506 | 2,327 | 2,236 | 5,240 | 4,394 | |||||||||||||||||||||||||
Interest and other | 3,292 | 3,054 | 2,444 | 2,027 | 3,349 | 6,346 | 6,795 | |||||||||||||||||||||||||
Total operating expenses | 53,699 | 57,299 | 51,690 | 49,025 | 51,925 | 110,998 | 104,093 | |||||||||||||||||||||||||
Income from Ryan Beck before income taxes | 12,175 | 8,562 | 7,562 | 4,416 | 1,476 | 20,737 | 4,591 | |||||||||||||||||||||||||
Provision for income taxes | 5,161 | 3,434 | 3,559 | 1,522 | 551 | 8,595 | 1,843 | |||||||||||||||||||||||||
Income from Ryan Beck’s continuing operations | 7,014 | 5,128 | 4,003 | 2,894 | 925 | 12,142 | 2,748 | |||||||||||||||||||||||||
Discontinued operations (GMS), net of tax | — | — | — | 306 | 754 | — | 837 | |||||||||||||||||||||||||
Net income from Ryan Beck business segment | $ | 7,014 | 5,128 | 4,003 | 3,200 | 1,679 | 12,142 | 3,585 | ||||||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||||||
GAAP return on equity | % | 33.07 | 26.40 | 20.65 | 17.40 | 9.55 | 28.62 | 10.19 | ||||||||||||||||||||||||
Continuing operations return on equity | 33.07 | 26.40 | 20.65 | 15.74 | 5.26 | 28.62 | 7.81 | |||||||||||||||||||||||||
Compensation as a percent of revenues | 61.17 | 66.87 | 61.80 | 67.22 | 69.08 | 64.02 | 68.84 | |||||||||||||||||||||||||
Commissions to total revenues | 33.77 | 38.52 | 38.75 | 39.78 | 40.45 | 36.15 | 37.68 | |||||||||||||||||||||||||
Principal transactions to total revenues | 32.87 | 37.11 | 42.68 | 39.47 | 45.05 | 34.99 | 45.21 | |||||||||||||||||||||||||
Investment banking revenue to total revenues | 27.36 | 19.18 | 12.35 | 14.30 | 9.51 | 23.27 | 11.75 |
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||||||
(in thousands) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 4,000 | 4,888 | 5,538 | 259 | 1,193 | ||||||||||||||||||
Securities | 120,953 | 122,114 | 124,565 | 87,837 | 224,405 | |||||||||||||||||||
Other investments | — | — | — | 4,212 | 1,456 | |||||||||||||||||||
Notes receivable — GMS | 8,551 | 10,261 | 11,971 | 13,681 | — | |||||||||||||||||||
Property and equipment, net | 6,762 | 4,749 | 3,713 | 3,599 | 4,095 | |||||||||||||||||||
Goodwill | 6,184 | 6,184 | 6,184 | 6,184 | 6,184 | |||||||||||||||||||
Due from clearing agent | 16,048 | — | — | — | — | |||||||||||||||||||
Other assets | 25,809 | 28,051 | 26,703 | 27,149 | 37,085 | |||||||||||||||||||
Total assets | $ | 188,307 | 176,247 | 178,674 | 142,921 | 274,418 | ||||||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Securities sold not yet purchased | $ | 51,321 | 34,250 | 37,813 | 15,089 | 34,968 | ||||||||||||||||||
Note payable | — | 427 | 801 | 1,176 | 1,550 | |||||||||||||||||||
Note payable to BankAtlantic Bancorp | — | — | — | — | 5,000 | |||||||||||||||||||
Due to clearing agent | — | 18,328 | 8,583 | 6,087 | 112,410 | |||||||||||||||||||
Other liabilities | 52,145 | 45,559 | 53,922 | 47,013 | 50,137 | |||||||||||||||||||
Total liabilities | 103,466 | 98,564 | 101,119 | 69,365 | 204,065 | |||||||||||||||||||
Stockholder’s equity | 84,841 | 77,683 | 77,555 | 73,556 | 70,353 | |||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 188,307 | 176,247 | 178,674 | 142,921 | 274,418 | ||||||||||||||||||
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | 6/30/2004 | 6/30/2003 | |||||||||||||||||||||
Net interest (expense) | $ | (3,583 | ) | (3,592 | ) | (3,804 | ) | (3,676 | ) | (3,868 | ) | (7,175 | ) | (7,141 | ) | |||||||||||||
Income from unconsolidated subsidiaries | 118 | 118 | 119 | 107 | 117 | 236 | 199 | |||||||||||||||||||||
Gains on sales of assets | 3 | 75 | — | — | — | 78 | 404 | |||||||||||||||||||||
Equity security litigation settlement gain | — | 22,840 | — | — | — | 22,840 | — | |||||||||||||||||||||
Cost associated with debt redemption | — | — | — | — | (1,648 | ) | — | (1,648 | ) | |||||||||||||||||||
Other income (expense) | (861 | ) | (747 | ) | (455 | ) | (588 | ) | (868 | ) | (1,608 | ) | (1,783 | ) | ||||||||||||||
Income (loss) from parent company activities before income taxes | (4,323 | ) | 18,694 | (4,140 | ) | (4,157 | ) | (6,267 | ) | 14,371 | (9,969 | ) | ||||||||||||||||
Provision (Benefit) for income taxes | (1,574 | ) | 6,604 | (148 | ) | (1,454 | ) | (2,192 | ) | 5,030 | (3,487 | ) | ||||||||||||||||
Income (loss) from parent company activities from continuing operations | $ | (2,749 | ) | 12,090 | (3,992 | ) | (2,703 | ) | (4,075 | ) | 9,341 | (6,482 | ) | |||||||||||||||
Reconciliation of Operating and business segment income | ||||||||||||||||||||||||||||
Business segment income from continuing operations | $ | (2,749 | ) | 12,090 | (3,992 | ) | (2,703 | ) | (4,075 | ) | 9,341 | (6,482 | ) | |||||||||||||||
Equity security litigation settlement gain | — | (14,785 | ) | — | — | — | (14,785 | ) | — | |||||||||||||||||||
Cost associated with debt redemption | — | — | — | — | 1,071 | — | 1,071 | |||||||||||||||||||||
Operating loss (pretax) | $ | (2,749 | ) | (2,695 | ) | (3,992 | ) | (2,703 | ) | (3,004 | ) | (5,444 | ) | (5,411 | ) | |||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 6/30/2003 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 10,850 | 48,841 | 22,765 | 16,551 | 15,115 | ||||||||||||||
Securities | 56,773 | 21,826 | 20,949 | 17,254 | 9,458 | |||||||||||||||
Notes receivable from related parties | 38,000 | 42,125 | 43,500 | 30,000 | 35,000 | |||||||||||||||
Investment in subsidiaries | 579,760 | 566,725 | 567,411 | 679,253 | 664,825 | |||||||||||||||
Investment in unconsolidated subsidiaries | 7,910 | 7,910 | 7,910 | 12,545 | 12,027 | |||||||||||||||
Other assets | 13,021 | 8,235 | 16,953 | 24,050 | 25,490 | |||||||||||||||
Total assets | $ | 706,314 | 695,662 | 679,488 | 779,653 | 761,915 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 263,366 | 263,366 | 263,366 | 263,318 | 263,318 | ||||||||||||||
Other liabilities | 2,860 | 2,719 | 2,670 | 2,666 | 2,766 | |||||||||||||||
Total liabilities | 266,226 | 266,085 | 266,036 | 265,984 | 266,084 | |||||||||||||||
Stockholders’ equity | 440,088 | 429,577 | 413,452 | 513,669 | 495,831 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 706,314 | 695,662 | 679,488 | 779,653 | 761,915 | ||||||||||||||