BankAtlantic Bancorp Reports Earnings
For The Third Quarter 2004
Income From Continuing Operations Increased 46%
Earnings Per Share Increased 44%
YTD Income From Continuing Operations Increased 74%
YTD Earnings Per Share Increased 68%
FORT LAUDERDALE, Florida – October 20, 2004 — BankAtlantic Bancorp, Inc. (NYSE: BBX) today announced financial results for the third quarter ended September 30, 2004. Income from continuing operations increased 46% to $14.7 million for the third quarter of 2004, up from $10.1 million earned in the corresponding period in 2003. Diluted earnings per share from continuing operations increased 44% to $0.23, up from $0.16 in the corresponding period in 2003. Year-to-date income from continuing operations increased 74% to $53.5 million for the period ending September 30, 2004, up from $30.8 million in the corresponding period in 2003. Year-to-date diluted earnings per share from continuing operations increased 68% to $0.84, up from $0.50 earned in the corresponding period in 2003.
Chairman of the Board and Chief Executive Officer Alan B. Levan commented, “The last six weeks of the third quarter brought Floridians unprecedented disruptions from hurricanes including evacuations, curfews, loss of electric service, and other related damages. The rapid succession of the four Florida hurricanes created unparalleled challenges to our communities. We are very proud of our extraordinarily dedicated staff for keeping the ‘Florida’s Most Convenient Bank’ promise during this trying period. We offered customers and non-customers alike unparalleled service and care before and after each storm, including weekends and the Labor Day holiday.
“In spite of weather-related conditions during the quarter, BankAtlantic’s growth initiatives continued to show solid progress. BankAtlantic maintained a net interest margin for the quarter of 3.78%, up from 3.10% in the comparable 2003 period, and credit quality remained strong. Low cost deposits continued to grow, as outlined later in this release. Ryan Beck & Co. experienced good results, reporting a 42% increase in business segment income from continuing operations over the equivalent quarter of 2003, although its quarter was down from its all-time high in the second quarter, 2004.
Additional accomplishments and highlights include:
BankAtlantic:
“Our groundbreaking ‘Florida’s Most Convenient Bank’ initiatives continue to contribute strong growth in new customer generation, further validating our belief that customers desire the unsurpassed convenience BankAtlantic delivers. Since January 2002, BankAtlantic has opened approximately 370,000 new checking and savings accounts, including 38,600 in the third quarter of 2004.
“As shown in the table below, balances in low cost deposits increased 27% on a ‘same branch basis’ over the third 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 Bank’ program, BankAtlantic had $602 million in low cost deposits. Non-interest bearing demand deposits now constitute 24% of deposit funding, up from 20% a year ago, and 13% before initiation of the program.
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The following table presents comparative data for new accounts:
Total Bank
New Account Openings
Annual, Year-over-Year
2002 | 2003 | Change | ||||||||||
Checking (DDA/NOW) | 76,614 | 98,281 | +28 | % | ||||||||
Savings | 22,488 | 46,207 | +105 | % | ||||||||
Total | 99,102 | 144,488 | +46 | % |
Quarterly, Year-over-Year
3Q'03 | 3Q'04 | Change | ||||||||||
Checking (DDA/NOW) | 25,872 | 25,361 | -2 | % | ||||||||
Savings | 11,651 | 13,236 | +14 | % | ||||||||
Total | 37,523 | 38,597 | +3 | % |
Quarterly, Year-to-Date
Y-T-D | Y-T-D | |||||||||||
3Q'03 | 3Q'04 | Change | ||||||||||
Checking (DDA/NOW) | 75,331 | 83,225 | +10 | % | ||||||||
Savings | 34,844 | 42,992 | +23 | % | ||||||||
Total | 110,175 | 126,217 | +15 | % |
Total Bank
Period-end Balances
Annual, Year-over-Year
(In Millions)
2002 | 2003 | Change | ||||||||||
Checking (DDA/NOW) | $ | 862.7 | $ | 1,179.2 | +36.7 | % | ||||||
Savings | $ | 163.6 | $ | 209.0 | +27.7 | % | ||||||
Total | $ | 1,026.3 | $ | 1,388.2 | +35.3 | % |
Quarterly, Year-over-Year
(In Millions)
3Q'03 | 3Q'04 | Change | ||||||||||
Checking (DDA/NOW) | $ | 1,075.5 | $ | 1,372.8 | +27.6 | % | ||||||
Savings | $ | 202.4 | $ | 252.4 | +24.7 | % | ||||||
Total | $ | 1,277.9 | $ | 1,625.2 | +27.2 | % |
* To view comparative new account and balance graphs, please accesswww.BankAtlanticBancorp.com,click on the “Press Room” navigation link, then click the “Charts and Graphs” link.
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“The net interest margin at BankAtlantic improved to 3.78%, up from 3.10% in the comparable quarter of 2003. Our continued improvement in net interest margin reflects the growth in our low cost deposits, the restructuring of high cost FHLB advances in prior periods, and higher yields on interest sensitive assets resulting from the recent increases in interest rates. We believe BankAtlantic may realize further margin improvement in a rising interest rate environment. However, a shift in the slope of the yield curve could temporarily moderate or offset that benefit.
“BankAtlantic’s credit quality continued to improve, with net recoveries in the period of $324,000 or 0.03% of average loans. On a year-to-date basis, the Bank has experienced net recoveries of $4.3 million or 0.15% of average loans. Provision for loan loss expense for the quarter was $1.7 million, vs. a negative provision of $2.0 million in the quarter ended June 30. On a year-to-date basis as of September 30, the provision expense was a benefit of $1.1 million, primarily the result of a $2.0 million recovery associated with a loan charged off in 2002. The ratio of non-performing loans to total loans declined from 0.33% at June 30 to 0.27% at September 30 and the ratio of non-performing assets to total assets decreased from 0.36% to 0.30%. The Allowance for Loan and Lease Losses (‘ALLL’) increased from $46.7 million (1.20% of period ending loans) at June 30 to $48.8 million (1.17% of period ending loans) at September 30. However, the coverage of the ALLL to non-performing loans increased from 368% to 430% and the coverage of ALLL to non-performing assets increased from 320% to 379%.
“Small business and consumer loan demand continues to be robust. In the third quarter, average consumer loans grew 37%, and average small business loans grew 18% vs. the comparable 2003 period. Year-to date 2004 average consumer loans grew 32%, and small business loans grew 13%, vs. the comparable nine-month period of 2003. Commercial real estate lending grew 5% year-to-date.
“On September 30th, BankAtlantic announced plans to expand the number of branches with extended branch lobby hours through midnight in selected branches. BankAtlantic began its ‘midnight hours’ pilot program in June of this year at its Kendale Lakes branch in Miami-Dade County, where we are now open from 7:30 a.m. through midnight seven days a week. The pilot program has been well received and we are now expanding our ‘midnight hours’ offering to seven additional branches in several counties beginning in January 2005.
“During the third quarter, we spent approximately $2 million (or approximately $0.02 per share, after tax) in connection with our efforts to fully comply with the USA Patriot Act, Anti-Money Laundering laws and the Bank Secrecy Act, which have imposed far-reaching and substantial requirements on financial institutions. We expect these expenses, which were primarily paid to outside professionals, to continue at approximately this level during the fourth quarter. Although we have added significant staff in the compliance area that will be an on-going expense, much of the increased level of expenditures for compliance in the third and fourth quarters resulted from the identification of deficiencies in the past, requiring a thorough review of previous compliance under these laws. We are cooperating with federal agencies in connection with the past deficiencies. We cannot provide assurance that monetary penalties will not be imposed.
Ryan Beck & Co.:
“Ryan Beck & Co. delivered solid results for the third quarter of 2004. Income from continuing operations in the quarter grew 42% to $4.1 million, up from $2.9 million in the 2003 quarter. The pre-tax margin increased to 12.9%, up from 8.3% in the third quarter, 2003. Investment banking revenue grew 82% to $13.8 million, up from $7.6 million in 2003. Ryan Beck’s Financial Institutions Group announced or completed eight transactions, including six merger and acquisition transactions as well as two capital financing transactions in the quarter. Year-to-date, investment banking revenue rose 118% to $44.5 million, up from $20.4 million in 2003. Total operating revenue for the nine months grew 15% to $187
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million, up from $162 million in 2003. Income from continuing operations for the nine months grew 189% to $16.2 million, up from $5.6 million in 2003. Year-to-date, the return on equity improved to 24.3%, vs. 12.3% in 2003.
“This quarter was also one with significant achievements for Ryan Beck & Co. Ryan Beck’s financial institutions investment banking group was ranked the number one advisor in conversion offerings by gross proceeds, and the number four M&A advisor by number of deals (source: SNL Securities).
“During the quarter, Ryan Beck launched a new, proprietary unit investment trust, the Ryan Beck Select Balanced Income Portfolio, 2004 Series. This trust invests in a diversified portfolio of 15-20 separately managed, taxable closed-end funds. At September 30, 2004, total deposits in the trust amounted to $42 million.
“Ryan Beck also launched a new advertising campaign designed to raise brand awareness and to reflect the firm’s straightforward, no-nonsense approach to investing. Highlighted by rail platform billboards and television spots, the campaign focused in key markets in New Jersey and New York.
BankAtlantic Bancorp:
“On July 7, 2004, BankAtlantic Bancorp announced it had been added to Standard & Poor’s (S&P) SmallCap 600 Index. In addition, BankAtlantic Bancorp is also listed in the S&P 1500 Supercomposite Index and the New York Stock Exchange Composite Index.
Financial Highlights:
Third Quarter, 2004 Compared to Third Quarter, 2003
BankAtlantic Bancorp — consolidated (adjusted for Levitt Corporation spin-off):
• | Income from continuing operations of $14.7 million vs. $10.1 million, an increase of 46%. | |||
• | Diluted earnings per share from continuing operations of $0.23 vs. $0.16, an increase of 44%. | |||
• | Return from continuing operations on tangible equity was 16.18% vs. 9.77%. | |||
• | Book value per share rose to $7.67. |
BankAtlantic:
• | Business segment net income of $13.6 million vs. $9.9 million, an increase of 37%. | |||
• | Return on average tangible assets was 1.07% vs. 0.81%. | |||
• | Return on tangible equity was 12.79% vs. 9.92%. | |||
• | Non-interest income was $22.3 million vs. $17.1 million, an increase of 30%. | |||
• | Non-interest expense grew to $45.5 million vs. $39.2 million, an increase of 16%. |
Ryan Beck & Co.:
• | Business segment net income from continuing operations increased to $4.1 million vs. $2.9 million, an increase of 41%. | |||
• | Return on equity from continuing operations was 18.44% vs. 15.75%. | |||
• | Total operating revenues increased to $55.5 million vs. $53.4 million, an increase of 4%. | |||
• | Principal transactions were $19.4 million vs. $21.1 million. | |||
• | Investment banking revenue increased to $13.8 million vs. $7.6 million, an increase of 82%. | |||
• | Commission income was $18.6 million vs. $21.3 million. |
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Year-To-Date 2004 Compared To The Corresponding 2003 Period
BankAtlantic Bancorp — consolidated (adjusted for Levitt Corporation spin-off):
• | Income from continuing operations was $53.5 million vs. $30.8 million. Excluding the effect of a litigation settlement and costs associated with the early redemption of debt, operating net income would have been $46.3 million vs. $33.2 million, an increase of 39%. | |||
• | Diluted earnings per share from continuing operations were $0.84 vs. $0.50, an increase of 68%. The effect of the non-recurring items was $0.11 in the current period and $(0.04) last year. | |||
• | Return from continuing operations on average tangible equity was 20.63% vs. 10.31%. Excluding the non-recurring items, the return on average tangible equity would have been 17.87% vs. 15.12%. |
BankAtlantic:
• | Business segment net income of $31.7 million vs. $34.3 million. The 2004 period includes a $7.6 million after-tax expense related to the prepayment of “high cost” FHLB advances vs. $1.3 million in 2003. Excluding these prepayment expenses, segment income would have been $39.3 million. | |||
• | Return on average tangible assets was 0.89% vs. 0.91%. Excluding the prepayment expenses, the return on tangible assets would have been 1.11% for the current period. | |||
• | Return on tangible equity was 10.19% vs. 11.63%. Excluding the prepayment expenses, the return on tangible equity was 12.65% for the current period. | |||
• | Non-interest income was $62.7 million vs. $53.8 million, an increase of 17%. | |||
• | Non-interest expense grew to $142.0 million vs. $116.1 million. Included in the current period is an $11.7 million expense associated with the prepayment of FHLB Advances vs. $2.0 million in 2003. Excluding the prepayment charges, expenses increased 14%. |
Ryan Beck & Co.:
• | Business segment net income from continuing operations increased to $16.2 million vs. $5.6 million. | |||
• | Return on equity from continuing operations was 24.35% vs. 10.23%. | |||
• | Total operating revenues increased to $187.3 million vs. $162.1 million, an increase of 16%. |
— — — — — — — — — — —
BankAtlantic BancorpBankAtlantic Bancorp will host an investor and media teleconference call and webcast on Thursday, October 21, 2004, at 11:00 a.m. Eastern Time.
Teleconference Call Information:
To access the teleconference call in the U.S. and Canada, the toll free number to call is 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number1329745.
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, November 19, 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 is1329745.
Webcast Information:
Alternatively, 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, November 19, 2004.
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BankAtlantic Bancorp’s Third 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 Third 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 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 74 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 onwww.BankAtlanticBancorp.com
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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, Investor and Corp. Communications Specialist
Phone: (954) 760-5241, Fax: (954) 760-5415
Email:CorpComm@BankAtlanticBancorp.com
BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Public Relations:
Hattie Harvey, Vice President
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
# # #
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, extended midnight branch banking hours initiative, and other growth initiatives not producing results consistent with historic growth rates or results which would justify their costs; as well as the impact of regulatory or accounting issues including the impact of and compliance with Anti-Money Laundering and Bank Secrecy Act laws. Further, this press
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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; announced or anticipated transactions, including mergers and acquisitions, or capital financing transactions not being completed or producing results which do not justify their costs; the success or profitability of Ryan Beck’s newly launched products; the effectiveness of Ryan Beck’s advertising and brand awareness campaigns; 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 Nine Months Ended | |||||||||||||||||||||||||||
(in thousands except share data and ratios) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 9/30/2004 | 9/30/2003 | |||||||||||||||||||||
Current Earnings: | ||||||||||||||||||||||||||||
Net income (GAAP basis) | $ | 14,691 | 18,260 | 20,524 | 17,642 | 18,508 | 53,475 | 50,075 | ||||||||||||||||||||
Income from continuing operations (GAAP basis (note 1) | $ | 14,691 | 18,260 | 20,524 | 7,826 | 10,144 | 53,475 | 30,771 | ||||||||||||||||||||
Operating net income (note 2) | $ | 14,691 | 18,260 | 13,371 | 13,582 | 11,470 | 46,322 | 33,168 | ||||||||||||||||||||
Average Common Shares Outstanding: | ||||||||||||||||||||||||||||
Basic | 59,687,354 | 59,343,940 | 59,257,270 | 58,891,273 | 58,646,254 | 59,430,463 | 58,381,370 | |||||||||||||||||||||
Diluted | 63,109,757 | 62,807,683 | 63,193,034 | 61,852,217 | 61,343,946 | 63,026,141 | 62,475,859 | |||||||||||||||||||||
Key Performance Ratios (GAAP basis): | ||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.25 | 0.31 | 0.35 | 0.30 | 0.32 | 0.90 | 0.86 | ||||||||||||||||||||
Diluted earnings per share * | $ | 0.23 | 0.29 | 0.32 | 0.28 | 0.30 | 0.84 | 0.80 | ||||||||||||||||||||
Basic earnings per share from continuing operations | $ | 0.25 | 0.31 | 0.35 | 0.13 | 0.17 | 0.90 | 0.53 | ||||||||||||||||||||
Diluted earnings per share from continuing operations* | $ | 0.23 | 0.29 | 0.32 | 0.12 | 0.16 | 0.84 | 0.50 | ||||||||||||||||||||
Return on average tangible assets from continuing operations (note 3) | 1.09 | % | 1.48 | 1.75 | 0.61 | 0.74 | 1.42 | 0.74 | ||||||||||||||||||||
Return on average tangible equity from continuing operations (note 3) | 16.18 | % | 21.18 | 24.97 | 7.23 | 9.77 | 20.63 | 10.31 | ||||||||||||||||||||
Key Performance Ratios (Operating basis): | ||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.25 | 0.31 | 0.23 | 0.23 | 0.20 | 0.78 | 0.57 | ||||||||||||||||||||
Diluted earnings per share * | $ | 0.23 | 0.29 | 0.21 | 0.22 | 0.19 | 0.73 | 0.54 | ||||||||||||||||||||
Return on average tangible assets (note 3,4) | 1.09 | % | 1.48 | 1.14 | 1.14 | 0.89 | 1.23 | 0.85 | ||||||||||||||||||||
Return on average tangible equity (note 3,4) | 16.18 | % | 21.18 | 16.27 | 17.20 | 15.23 | 17.87 | 15.12 | ||||||||||||||||||||
* Diluted earnings per share calculation adds back: | ||||||||||||||||||||||||||||
Interest expense net of tax on convertible securities, if dilutive | $ | — | — | — | — | — | — | 569 | ||||||||||||||||||||
Subsidiaries stock options, if dilutive | $ | (152 | ) | (273 | ) | (192 | ) | (104 | ) | (83 | ) | (617 | ) | (157 | ) | |||||||||||||
Average Balance Sheet Data: | ||||||||||||||||||||||||||||
Assets | $ | 5,477,966 | 5,022,805 | 4,791,753 | 5,221,228 | 5,579,697 | 5,098,906 | 5,623,497 | ||||||||||||||||||||
Tangible assets (note 3) | $ | 5,390,375 | 4,934,771 | 4,703,305 | 5,132,341 | 5,490,370 | 5,010,883 | 5,532,827 | ||||||||||||||||||||
Tangible assets excluding Levitt (note 3) | $ | 5,390,375 | 4,934,771 | 4,703,305 | 4,751,321 | 5,141,183 | 5,010,883 | 5,211,623 | ||||||||||||||||||||
Loans | $ | 4,031,782 | 3,777,452 | 3,730,782 | 3,698,377 | 3,942,124 | 3,847,348 | 3,854,041 | ||||||||||||||||||||
Investments | $ | 1,017,614 | 818,812 | 668,269 | 773,271 | 901,283 | 835,571 | 1,039,475 | ||||||||||||||||||||
Deposits and escrows | $ | 3,283,134 | 3,205,328 | 3,064,750 | 3,032,170 | 2,951,536 | 3,184,764 | 2,909,774 | ||||||||||||||||||||
Stockholders’ equity | $ | 451,824 | 435,852 | 423,482 | 521,393 | 503,274 | 437,115 | 482,764 | ||||||||||||||||||||
Tangible stockholders’ equity (note 3) | $ | 363,168 | 344,832 | 328,714 | 433,103 | 415,294 | 345,644 | 397,986 | ||||||||||||||||||||
Tangible stockholders’ equity excluding Levitt (note 3) | $ | 363,168 | 344,832 | 328,714 | 315,808 | 301,310 | 345,644 | 292,490 |
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 the litigation settlement 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) | 9/30/2004 | 12/31/2003 | 9/30/2003 | |||||||||
ASSETS | ||||||||||||
Cash and due from depository institutions | $ | 119,606 | 119,882 | 139,096 | ||||||||
Securities purchased under resell agreements and federal funds | 2,241 | — | 4,212 | |||||||||
Securities available for sale (at fair value) | 703,418 | 358,511 | 354,101 | |||||||||
Securities owned (at fair value) | 111,944 | 124,565 | 87,837 | |||||||||
Investment securities and tax certificates (approximate fair value: $159,944, $192,706 and $159,762) | 159,944 | 192,706 | 155,550 | |||||||||
Loans receivable, net of allowance for loan losses of $48,778, $45,595 and $48,202 | 4,176,571 | 3,686,153 | 3,739,638 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 62,425 | 40,325 | 56,987 | |||||||||
Accrued interest receivable | 30,126 | 27,866 | 29,109 | |||||||||
Real estate held for development and sale | 25,521 | 21,803 | 256,920 | |||||||||
Investments and advances in unconsolidated subsidiaries | 7,910 | 7,910 | 102,590 | |||||||||
Office properties and equipment, net | 115,809 | 93,577 | 93,334 | |||||||||
Deferred tax asset, net | 18,413 | 22,999 | 33,684 | |||||||||
Goodwill | 76,674 | 76,674 | 76,674 | |||||||||
Core deposit intangible asset | 10,695 | 11,985 | 12,424 | |||||||||
Due from clearing agent | 14,478 | — | — | |||||||||
Other assets | 42,837 | 46,593 | 54,904 | |||||||||
Total assets | $ | 5,678,612 | 4,831,549 | 5,197,060 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits | ||||||||||||
Interest free checking | $ | 781,916 | 645,036 | 594,685 | ||||||||
NOW accounts | 590,051 | 533,888 | 480,837 | |||||||||
Savings accounts | 252,408 | 208,966 | 202,355 | |||||||||
Insured money fund savings | 893,315 | 865,590 | 878,281 | |||||||||
Certificate accounts | 724,601 | 804,662 | 826,045 | |||||||||
Total deposits | 3,242,291 | 3,058,142 | 2,982,203 | |||||||||
Advances from FHLB | 1,249,112 | 782,205 | 956,820 | |||||||||
Securities sold under agreements to repurchase | 200,550 | 138,809 | 143,230 | |||||||||
Federal funds purchased | 86,300 | — | — | |||||||||
Subordinated debentures, notes and bonds payable | 36,780 | 36,595 | 146,696 | |||||||||
Junior subordinated debentures | 263,266 | 263,266 | 263,218 | |||||||||
Securities sold not yet purchased | 31,760 | 37,813 | 15,089 | |||||||||
Due to clearing agent | — | 8,583 | 6,086 | |||||||||
Other liabilities | 109,064 | 92,684 | 170,049 | |||||||||
Total liabilities | 5,219,123 | 4,418,097 | 4,683,391 | |||||||||
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 54,997,960, 54,396,824 and 54,064,076 shares | 550 | 544 | 541 | |||||||||
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 | 258,980 | 259,770 | 256,782 | |||||||||
Unearned compensation — restricted stock grants | (1,046 | ) | (1,178 | ) | (1,223 | ) | ||||||
Retained earnings | 195,765 | 148,311 | 258,197 | |||||||||
Total stockholders’ equity before accumulated other comprehensive income | 454,298 | 407,496 | 514,346 | |||||||||
Accumulated other comprehensive income (loss) | 5,191 | 5,956 | (677 | ) | ||||||||
Total stockholders’ equity | 459,489 | 413,452 | 513,669 | |||||||||
Total liabilities and stockholders’ equity | $ | 5,678,612 | 4,831,549 | 5,197,060 | ||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
For The Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 9/30/2004 | 9/30/2003 | |||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||
Interest and fees on loans and leases | $ | 52,661 | 48,034 | 48,936 | 49,647 | 50,668 | 149,631 | 157,799 | ||||||||||||||||||||
Interest on securities available for sale | 4,974 | 4,584 | 3,620 | 3,372 | 4,598 | 13,178 | 20,941 | |||||||||||||||||||||
Interest on tax exempt securities | 1,329 | 610 | 33 | — | — | 1,972 | — | |||||||||||||||||||||
Interest and dividends on investment and | ||||||||||||||||||||||||||||
securities owned | 7,409 | 6,879 | 7,040 | 7,833 | 7,545 | 21,328 | 22,257 | |||||||||||||||||||||
Total interest income | 66,373 | 60,107 | 59,629 | 60,852 | 62,811 | 186,109 | 200,997 | |||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Interest on deposits | 7,060 | 6,788 | 6,973 | 7,504 | 7,758 | 20,821 | 28,685 | |||||||||||||||||||||
Interest on advances from FHLB | 9,364 | 7,769 | 9,098 | 11,667 | 15,025 | 26,231 | 45,632 | |||||||||||||||||||||
Interest on short-term borrowed funds | 953 | 632 | 250 | 289 | 558 | 1,835 | 2,625 | |||||||||||||||||||||
Interest on long-term debt | 5,034 | 4,912 | 4,827 | 5,399 | 4,257 | 14,773 | 12,609 | |||||||||||||||||||||
Capitalized interest on real estate developments | (355 | ) | (346 | ) | (307 | ) | (312 | ) | (286 | ) | (1,008 | ) | (881 | ) | ||||||||||||||
Total interest expense | 22,056 | 19,755 | 20,841 | 24,547 | 27,312 | 62,652 | 88,670 | |||||||||||||||||||||
NET INTEREST INCOME | 44,317 | 40,352 | 38,788 | 36,305 | 35,499 | 123,457 | 112,327 | |||||||||||||||||||||
Provision (recovery) for loan losses | 1,717 | (1,963 | ) | (859 | ) | (1,811 | ) | (1,076 | ) | (1,105 | ) | 1,264 | ||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 42,600 | 42,315 | 39,647 | 38,116 | 36,575 | 124,562 | 111,063 | |||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||
Service charges on deposits | 13,493 | 13,028 | 11,277 | 11,481 | 10,925 | 37,798 | 29,088 | |||||||||||||||||||||
Other service charges and fees | 5,819 | 6,431 | 4,637 | 4,704 | 4,625 | 16,887 | 14,614 | |||||||||||||||||||||
Broker/dealer revenue and other commissions | 51,792 | 61,925 | 62,445 | 55,566 | 49,992 | 176,162 | 152,222 | |||||||||||||||||||||
Securities activities, net | 2 | 3 | 72 | (1,582 | ) | (336 | ) | 77 | 29 | |||||||||||||||||||
Litigation settlement | — | — | 22,840 | — | — | 22,840 | — | |||||||||||||||||||||
Gain on sales of loans | 86 | 116 | 129 | 108 | 10 | 331 | 14 | |||||||||||||||||||||
Income from real estate operations | 900 | 683 | 305 | 354 | 66 | 1,888 | 5,288 | |||||||||||||||||||||
Income from unconsolidated subsidiaries | 123 | 118 | 118 | 119 | 106 | 359 | 306 | |||||||||||||||||||||
Other | 2,959 | 3,041 | 2,542 | 2,492 | 2,405 | 8,542 | 6,911 | |||||||||||||||||||||
Total non-interest income | 75,174 | 85,345 | 104,365 | 73,242 | 67,793 | 264,884 | 208,472 | |||||||||||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||||||||||||||
Employee compensation and benefits | 58,992 | 63,538 | 67,180 | 56,795 | 55,318 | 189,710 | 170,145 | |||||||||||||||||||||
Occupancy and equipment | 11,782 | 11,236 | 10,375 | 10,522 | 10,161 | 33,393 | 29,514 | |||||||||||||||||||||
Advertising and promotion | 4,757 | 5,630 | 4,694 | 3,110 | 2,988 | 15,081 | 9,614 | |||||||||||||||||||||
Professional fees | 4,356 | 2,610 | 2,737 | 5,243 | 4,238 | 9,703 | 11,068 | |||||||||||||||||||||
Communications | 3,182 | 2,916 | 3,128 | 2,917 | 2,822 | 9,226 | 10,867 | |||||||||||||||||||||
Floor broker and clearing fees | 2,143 | 2,438 | 2,802 | 2,506 | 2,328 | 7,383 | 6,722 | |||||||||||||||||||||
Cost associated with debt redemption | — | — | 11,741 | 8,855 | 2,040 | 11,741 | 3,688 | |||||||||||||||||||||
Other | 9,405 | 9,534 | 9,357 | 7,391 | 8,588 | 28,296 | 29,915 | |||||||||||||||||||||
Total non-interest expenses | 94,617 | 97,902 | 112,014 | 97,339 | 88,483 | 304,533 | 271,533 | |||||||||||||||||||||
Income from continuing operations before income taxes | 23,157 | 29,758 | 31,998 | 14,019 | 15,885 | 84,913 | 48,002 | |||||||||||||||||||||
Provision for income taxes | 8,466 | 11,498 | 11,474 | 6,193 | 5,741 | 31,438 | 17,231 | |||||||||||||||||||||
Income from continuing operations | 14,691 | 18,260 | 20,524 | 7,826 | 10,144 | 53,475 | 30,771 | |||||||||||||||||||||
Discontinued operations, net of tax * | — | — | — | 9,816 | 8,364 | — | 19,304 | |||||||||||||||||||||
GAAP net income (note 1) | $ | 14,691 | 18,260 | 20,524 | 17,642 | 18,508 | 53,475 | 50,075 | ||||||||||||||||||||
Reconciliation of Operating and GAAP Income from continuing operations | ||||||||||||||||||||||||||||
GAAP income from continuing operations | $ | 14,691 | 18,260 | 20,524 | 7,826 | 10,144 | 53,475 | 30,771 | ||||||||||||||||||||
Costs associated with debt redemption | — | — | 7,632 | 5,756 | 1,326 | 7,632 | 2,397 | |||||||||||||||||||||
Litigation settlement | — | — | (14,785 | ) | — | — | (14,785 | ) | — | |||||||||||||||||||
Operating net income (note 2) | $ | 14,691 | 18,260 | 13,371 | 13,582 | 11,470 | 46,322 | 33,168 | ||||||||||||||||||||
* 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) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | |||||||||||||||
Gross loans: | ||||||||||||||||||||
Residential real estate | $ | 1,583,353 | 1,386,482 | 1,326,061 | 1,403,686 | 1,714,774 | ||||||||||||||
Commercial real estate | 1,670,928 | 1,650,763 | 1,701,012 | 1,660,004 | 1,621,407 | |||||||||||||||
Consumer | 438,205 | 403,824 | 374,222 | 341,246 | 319,269 | |||||||||||||||
Lease financing | 9,738 | 11,526 | 13,642 | 16,293 | 18,935 | |||||||||||||||
Commercial business | 142,022 | 142,686 | 141,955 | 111,705 | 108,714 | |||||||||||||||
Small business | 187,536 | 182,171 | 173,890 | 165,443 | 159,025 | |||||||||||||||
Total Loans | 4,031,782 | 3,777,452 | 3,730,782 | 3,698,377 | 3,942,124 | |||||||||||||||
Investments — taxable | 845,286 | 745,854 | 664,907 | 773,271 | 901,283 | |||||||||||||||
Investments — tax exempt | 172,328 | 72,958 | 3,362 | — | — | |||||||||||||||
Total interest earning assets | 5,049,396 | 4,596,264 | 4,399,051 | 4,471,648 | 4,843,407 | |||||||||||||||
Goodwill and core deposit intangibles | 87,591 | 88,034 | 88,448 | 88,887 | 89,327 | |||||||||||||||
Other non-interest earning assets | 340,979 | 338,507 | 304,254 | 660,693 | 646,963 | |||||||||||||||
Total assets | $ | 5,477,966 | 5,022,805 | 4,791,753 | 5,221,228 | 5,579,697 | ||||||||||||||
Tangible assets (note 3) | $ | 5,390,375 | 4,934,771 | 4,703,305 | 5,132,341 | 5,490,370 | ||||||||||||||
Deposits: | ||||||||||||||||||||
Savings | $ | 250,286 | 242,506 | 220,005 | 205,564 | 197,778 | ||||||||||||||
NOW | 590,787 | 586,259 | 543,619 | 507,876 | 473,741 | |||||||||||||||
Money funds | 931,596 | 912,065 | 866,767 | 879,095 | 874,789 | |||||||||||||||
Certificates of deposit | 718,826 | 709,523 | 769,949 | 815,454 | 837,221 | |||||||||||||||
Total interest bearing deposits | 2,491,495 | 2,450,353 | 2,400,340 | 2,407,989 | 2,383,529 | |||||||||||||||
Short-term borrowed funds | 283,011 | 269,423 | 128,130 | 131,095 | 228,427 | |||||||||||||||
FHLB advances | 1,036,651 | 696,661 | 760,973 | 937,888 | 1,249,074 | |||||||||||||||
Long-term debt | 299,596 | 299,931 | 299,878 | 413,154 | 407,538 | |||||||||||||||
Total interest bearing liabilities | 4,110,753 | 3,716,368 | 3,589,321 | 3,890,126 | 4,268,568 | |||||||||||||||
Non-interest bearing deposits | 791,639 | 754,975 | 664,410 | 624,181 | 568,007 | |||||||||||||||
Non-interest bearing other liabilities | 123,750 | 115,610 | 114,540 | 185,528 | 239,848 | |||||||||||||||
Total liabilities | 5,026,142 | 4,586,953 | 4,368,271 | 4,699,835 | 5,076,423 | |||||||||||||||
Stockholders’ equity | 451,824 | 435,852 | 423,482 | 521,393 | 503,274 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,477,966 | 5,022,805 | 4,791,753 | 5,221,228 | 5,579,697 | ||||||||||||||
Other comprehensive (loss) income in stockholders’ equity | $ | 1,065 | 2,986 | 6,320 | (597 | ) | (1,347 | ) | ||||||||||||
Tangible stockholders’ equity (note 3) | $ | 363,168 | 344,832 | 328,714 | 433,103 | 415,294 | ||||||||||||||
Period End | ||||||||||||||||||||
Total loans, net | $ | 4,176,571 | 3,899,099 | 3,674,173 | 3,686,153 | 3,739,638 | ||||||||||||||
Total assets | 5,678,612 | 5,428,378 | 4,750,483 | 4,831,549 | 5,197,060 | |||||||||||||||
Total stockholders’ equity | 459,489 | 440,334 | 429,577 | 413,452 | 513,669 | |||||||||||||||
Common shares outstanding | 59,874,084 | 59,779,407 | 59,207,954 | 59,272,948 | 58,940,200 | |||||||||||||||
Cash dividends | 2,095,600 | 1,972,775 | 1,953,863 | 1,956,008 | 1,945,268 | |||||||||||||||
Common stock cash dividends per share | 0.035 | 0.033 | 0.033 | 0.033 | 0.033 | |||||||||||||||
Closing stock price (1) | 18.32 | 18.45 | 16.96 | 14.02 | 10.52 | |||||||||||||||
High stock price for the quarter (1) | 19.25 | 18.53 | 19.00 | 14.58 | 11.64 | |||||||||||||||
Low stock price for the quarter (1) | 17.40 | 14.37 | 13.70 | 10.44 | 8.68 | |||||||||||||||
Book value per share — historical | 7.67 | 7.37 | 7.26 | 6.98 | 8.72 |
(1) | adjusted to reflect the Levitt spin-off. |
BankAtlantic Bancorp, Inc. and Subsidiaries
Condensed Statements of Operations (Unaudited)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
(In thousands) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 9/30/2004 | 9/30/2003 | |||||||||||||||||||||
Net interest income | $ | 45,380 | 41,344 | 39,795 | 37,326 | 36,559 | 126,519 | 116,772 | ||||||||||||||||||||
Provision (recovery) for loan losses | 1,717 | (1,963 | ) | (859 | ) | (1,811 | ) | (1,076 | ) | (1,105 | ) | 1,264 | ||||||||||||||||
Net Interest income after provision for loan losses | 43,663 | 43,307 | 40,654 | 39,137 | 37,635 | 127,624 | 115,508 | |||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 13,493 | 13,028 | 11,277 | 11,481 | 10,925 | 37,798 | 29,088 | |||||||||||||||||||||
Other service charges and fees | 5,819 | 6,431 | 4,637 | 4,704 | 4,625 | 16,887 | 14,614 | |||||||||||||||||||||
Securities losses | — | — | (3 | ) | (1,582 | ) | (336 | ) | (3 | ) | (376 | ) | ||||||||||||||||
Gain on sales of loans | 86 | 116 | 129 | 108 | 10 | 331 | 14 | |||||||||||||||||||||
Income from real estate operations | 900 | 683 | 305 | 354 | 66 | 1,888 | 5,288 | |||||||||||||||||||||
Other non-interest income | 2,034 | 1,911 | 1,875 | 1,858 | 1,856 | 5,820 | 5,125 | |||||||||||||||||||||
Total non-interest income | 22,332 | 22,169 | 18,220 | 16,923 | 17,146 | 62,721 | 53,753 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 23,128 | 22,498 | 22,392 | 20,171 | 19,387 | 68,018 | 59,321 | |||||||||||||||||||||
Occupancy and equipment | 8,100 | 7,809 | 7,146 | 7,092 | 6,874 | 23,055 | 20,237 | |||||||||||||||||||||
Advertising | 3,301 | 4,161 | 3,463 | 2,517 | 2,444 | 10,925 | 6,917 | |||||||||||||||||||||
Professional fees | 3,312 | 807 | 1,258 | 1,129 | 1,139 | 5,377 | 3,260 | |||||||||||||||||||||
Cost associated with debt redemption | — | — | 11,741 | 8,855 | 2,040 | 11,741 | 2,040 | |||||||||||||||||||||
Other | 7,689 | 7,658 | 7,495 | 5,702 | 7,273 | 22,842 | 24,367 | |||||||||||||||||||||
Total non-interest expense | 45,530 | 42,933 | 53,495 | 45,466 | 39,157 | 141,958 | 116,142 | |||||||||||||||||||||
Income from bank operations business segment before income taxes | 20,465 | 22,543 | 5,379 | 10,594 | 15,624 | 48,387 | 53,119 | |||||||||||||||||||||
Provision for income taxes | 6,866 | 8,134 | 1,659 | 2,780 | 5,675 | 16,659 | 18,809 | |||||||||||||||||||||
Net income from bank operations business segment | $ | 13,599 | 14,409 | 3,720 | 7,814 | 9,949 | 31,728 | 34,310 | ||||||||||||||||||||
Reconciliation of Operating and business segment net income | ||||||||||||||||||||||||||||
Business segment income | $ | 13,599 | 14,409 | 3,720 | 7,814 | 9,949 | 31,728 | 34,310 | ||||||||||||||||||||
Cost associated with debt redemption | — | — | 7,632 | 5,756 | 1,326 | 7,632 | 1,326 | |||||||||||||||||||||
Operating net income | $ | 13,599 | 14,409 | 11,352 | 13,570 | 11,275 | 39,360 | 35,636 | ||||||||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
(in thousands except percentages and per share data) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 9/30/2004 | 9/30/2003 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Average total interest earning assets | $ | 4,843,628 | 4,422,181 | 4,220,559 | 4,381,497 | 4,706,976 | 4,496,733 | 4,757,626 | ||||||||||||||||||||
Average total interest bearing liabilities | $ | 3,851,388 | 3,483,903 | 3,347,890 | 3,554,854 | 3,924,292 | 3,562,120 | 4,026,880 | ||||||||||||||||||||
GAAP efficiency ratio | 67.24 | % | 67.60 | 92.21 | 83.81 | 72.91 | 75.01 | 68.11 | ||||||||||||||||||||
GAAP return on average assets | 1.05 | % | 1.21 | 0.33 | 0.66 | 0.79 | 0.88 | 0.90 | ||||||||||||||||||||
GAAP return on average equity | 10.76 | % | 11.72 | 3.00 | 6.42 | 8.25 | 8.50 | 9.71 | ||||||||||||||||||||
Operating efficiency ratio (1) | 67.24 | % | 67.60 | 71.97 | 67.49 | 69.11 | 68.81 | 66.91 | ||||||||||||||||||||
Operating return on average assets (1) | 1.05 | % | 1.21 | 1.00 | 1.15 | 0.90 | 1.09 | 0.93 | ||||||||||||||||||||
Operating return on average equity (1) | 10.76 | % | 11.72 | 9.15 | 11.15 | 9.35 | 10.54 | 10.09 | ||||||||||||||||||||
Net interest margin | 3.78 | % | 3.73 | 3.73 | 3.39 | 3.10 | 3.75 | 3.24 | ||||||||||||||||||||
Yield on earning assets | 5.25 | % | 5.16 | 5.34 | 5.20 | 5.11 | 5.25 | 5.45 | ||||||||||||||||||||
Cost of interest-bearing liabilities | 1.85 | % | 1.82 | 2.02 | 2.24 | 2.41 | 1.89 | 2.61 | ||||||||||||||||||||
Interest spread | 3.40 | % | 3.34 | 3.32 | 2.96 | 2.70 | 3.36 | 2.84 |
(1) | Ratios have been adjusted to exclude costs associated with debt redemptions. |
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(In thousands) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable | $ | 4,132,133 | 3,852,549 | 3,621,787 | 3,630,682 | 3,767,935 | ||||||||||||||
Held to maturity securities | 215,420 | 236,400 | 167,615 | 231,231 | 212,236 | |||||||||||||||
Available for sale securities | 648,043 | 639,581 | 338,639 | 339,362 | 337,147 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 10,695 | 11,121 | 11,546 | 11,985 | 12,424 | |||||||||||||||
Other assets | 308,894 | 312,583 | 284,703 | 283,101 | 286,709 | |||||||||||||||
Total assets | $ | 5,385,674 | 5,122,723 | 4,494,779 | 4,566,850 | 4,686,940 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Interest free checking | $ | 782,677 | 787,945 | 748,533 | 645,325 | 594,685 | ||||||||||||||
NOW accounts | 590,051 | 584,658 | 567,498 | 533,888 | 480,837 | |||||||||||||||
Savings accounts | 252,408 | 251,218 | 233,832 | 208,966 | 202,354 | |||||||||||||||
Total low costs deposits | 1,625,136 | 1,623,821 | 1,549,863 | 1,388,179 | 1,277,876 | |||||||||||||||
Insured money fund savings | 893,315 | 906,865 | 870,447 | 865,590 | 878,281 | |||||||||||||||
Certificate accounts | 724,601 | 719,545 | 723,256 | 804,662 | 826,045 | |||||||||||||||
Total deposits | 3,243,052 | 3,250,231 | 3,143,566 | 3,058,431 | 2,982,202 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,249,112 | 883,727 | 591,466 | 782,205 | 956,820 | |||||||||||||||
Short term borrowings | 293,562 | 401,459 | 191,469 | 161,597 | 167,983 | |||||||||||||||
Long term debt | 36,680 | 36,295 | 36,582 | 35,334 | 36,077 | |||||||||||||||
Other liabilities | 52,749 | 55,020 | 42,243 | 39,427 | 62,389 | |||||||||||||||
Total liabilities | 4,875,155 | 4,626,732 | 4,005,326 | 4,076,994 | 4,205,471 | |||||||||||||||
Stockholder’s equity | 510,519 | 495,991 | 489,453 | 489,856 | 481,469 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,385,674 | 5,122,723 | 4,494,779 | 4,566,850 | 4,686,940 | ||||||||||||||
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
September 30, 2004 | September 30, 2003 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,583,353 | 18,636 | 4.71 | % | $ | 1,714,774 | 18,186 | 4.24 | % | ||||||||||||||
Commercial real estate | 1,662,978 | 23,737 | 5.71 | 1,666,209 | 24,011 | 5.76 | ||||||||||||||||||
Consumer | 438,205 | 4,609 | 4.21 | 319,269 | 3,548 | 4.45 | ||||||||||||||||||
Lease financing | 9,738 | 235 | 9.65 | 18,935 | 538 | 11.37 | ||||||||||||||||||
Commercial business | 104,022 | 1,636 | 6.29 | 110,236 | 1,618 | 5.87 | ||||||||||||||||||
Small business | 187,536 | 3,372 | 7.19 | 159,025 | 3,022 | 7.60 | ||||||||||||||||||
Total loans | 3,985,832 | 52,225 | 5.24 | 3,988,448 | 50,923 | 5.11 | ||||||||||||||||||
Investments — tax exempt | 144,126 | 1,948 | (1) | 5.41 | — | — | — | |||||||||||||||||
Investments — taxable | 713,670 | 9,439 | 5.29 | 718,528 | 9,211 | 5.13 | ||||||||||||||||||
Total interest earning assets | 4,843,628 | 63,612 | 5.25 | % | 4,706,976 | 60,134 | 5.11 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 81,406 | 83,143 | ||||||||||||||||||||||
Other non-interest earning assets | 246,868 | 229,398 | ||||||||||||||||||||||
Total Assets | $ | 5,171,902 | $ | 5,019,517 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 250,286 | 169 | 0.27 | % | $ | 197,778 | 137 | 0.27 | % | ||||||||||||||
NOW | 590,787 | 555 | 0.37 | 473,741 | 438 | 0.37 | ||||||||||||||||||
Money funds | 931,596 | 2,283 | 0.97 | 874,789 | 1,935 | 0.88 | ||||||||||||||||||
Certificate accounts | 718,826 | 4,053 | 2.24 | 837,221 | 5,248 | 2.49 | ||||||||||||||||||
Total deposits | 2,491,495 | 7,060 | 1.13 | 2,383,529 | 7,758 | 1.29 | ||||||||||||||||||
Short-term borrowed funds | 287,011 | 966 | 1.34 | 256,826 | 588 | 0.91 | ||||||||||||||||||
Advances from FHLB | 1,036,651 | 9,364 | 3.59 | 1,249,074 | 15,025 | 4.77 | ||||||||||||||||||
Long-term debt | 36,231 | 515 | 5.65 | 34,863 | 489 | 5.56 | ||||||||||||||||||
Total interest bearing liabilities | 3,851,388 | 17,905 | 1.85 | 3,924,292 | 23,860 | 2.41 | ||||||||||||||||||
Non-interest bearing deposits | 792,227 | 568,333 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 22,626 | 44,637 | ||||||||||||||||||||||
Total Liabilities | 4,666,241 | 4,537,262 | ||||||||||||||||||||||
Stockholder’s equity | 505,661 | 482,255 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,171,902 | $ | 5,019,517 | ||||||||||||||||||||
Net interest income/ net interest spread | $ | 45,707 | 3.40 | % | $ | 36,274 | 2.70 | % | ||||||||||||||||
Tax equivalent adjustment | (682 | ) | — | |||||||||||||||||||||
Capitalized interest from real estate operations | 355 | 285 | ||||||||||||||||||||||
Net interest income (tax equivalent) | 45,380 | 36,559 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 5.25 | % | 5.11 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 1.47 | 2.01 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.78 | % | 3.10 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations
Average Balance Sheet — Yield / Rate Analysis
For the Nine Months Ended | ||||||||||||||||||||||||
September 30, 2004 | September 30, 2003 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,432,518 | 50,358 | 4.69 | % | $ | 1,718,974 | 62,329 | 4.83 | % | ||||||||||||||
Commercial real estate | 1,664,786 | 70,101 | 5.61 | 1,584,284 | 70,249 | 5.91 | ||||||||||||||||||
Consumer | 405,537 | 12,577 | 4.14 | 307,644 | 10,535 | 4.57 | ||||||||||||||||||
Lease financing | 11,628 | 933 | 10.70 | 23,830 | 2,020 | 11.30 | ||||||||||||||||||
Commercial business | 102,260 | 4,725 | 6.16 | 105,806 | 4,564 | 5.75 | ||||||||||||||||||
Small business | 181,222 | 9,679 | 7.12 | 160,589 | 8,955 | 7.44 | ||||||||||||||||||
Total loans | 3,797,951 | 148,373 | 5.21 | 3,901,127 | 158,652 | 5.42 | ||||||||||||||||||
Investments — tax exempt | 73,646 | 2,937 | (1) | 5.32 | — | — | 0 | |||||||||||||||||
Investments — taxable | 625,136 | 25,753 | 5.49 | 856,499 | 35,745 | 5.56 | ||||||||||||||||||
Total interest earning assets | 4,496,733 | 177,063 | 5.25 | % | 4,757,626 | 194,397 | 5.45 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 81,838 | 83,823 | ||||||||||||||||||||||
Other non-interest earning assets | 246,235 | 242,537 | ||||||||||||||||||||||
Total Assets | $ | 4,824,806 | $ | 5,083,986 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 237,646 | 473 | 0.27 | % | $ | 185,432 | 721 | 0.52 | % | ||||||||||||||
NOW | 573,617 | 1,581 | 0.37 | 451,333 | 1,540 | 0.46 | ||||||||||||||||||
Money funds | 903,579 | 6,275 | 0.93 | 840,412 | 7,213 | 1.15 | ||||||||||||||||||
Certificate accounts | 732,715 | 12,492 | 2.28 | 905,409 | 19,211 | 2.84 | ||||||||||||||||||
Total deposits | 2,447,557 | 20,821 | 1.14 | 2,382,586 | 28,685 | 1.61 | ||||||||||||||||||
Short-term borrowed funds | 246,218 | 1,970 | 1.07 | 326,400 | 2,762 | 1.13 | ||||||||||||||||||
Advances from FHLB | 832,177 | 26,231 | 4.21 | 1,282,519 | 45,633 | 4.76 | ||||||||||||||||||
Long-term debt | 36,168 | 1,502 | 5.55 | 35,375 | 1,428 | 5.40 | ||||||||||||||||||
Total interest bearing liabilities | 3,562,120 | 50,524 | 1.89 | 4,026,880 | 78,508 | 2.61 | ||||||||||||||||||
Non-interest bearing deposits | 737,738 | 527,334 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 27,063 | 58,885 | ||||||||||||||||||||||
Total Liabilities | 4,326,921 | 4,613,099 | ||||||||||||||||||||||
Stockholder’s equity | 497,885 | 470,887 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 4,824,806 | $ | 5,083,986 | ||||||||||||||||||||
Net interest income/net interest spread | $ | 126,539 | 3.36 | % | $ | 115,889 | 2.84 | % | ||||||||||||||||
Tax equivalent adjustment | (1,028 | ) | — | |||||||||||||||||||||
Capitalized interest from real estate operations | 1,008 | 883 | ||||||||||||||||||||||
Net interest income | 126,519 | 116,772 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 5.25 | % | 5.45 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 1.50 | 2.21 | ||||||||||||||||||||||
Net interest margin | 3.75 | % | 3.24 | % | ||||||||||||||||||||
(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 Nine Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 9/30/2004 | 9/30/2003 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 46,737 | 45,383 | 45,595 | 48,202 | 49,576 | 45,595 | 48,022 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (151 | ) | (124 | ) | (231 | ) | (320 | ) | (150 | ) | (506 | ) | (362 | ) | ||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial business | (429 | ) | (80 | ) | (344 | ) | (1,306 | ) | (1,798 | ) | (853 | ) | (4,787 | ) | ||||||||||||||
Consumer | (174 | ) | (285 | ) | (248 | ) | (1,085 | ) | (260 | ) | (707 | ) | (1,155 | ) | ||||||||||||||
Small business | (144 | ) | (35 | ) | (44 | ) | (321 | ) | (334 | ) | (223 | ) | (2,387 | ) | ||||||||||||||
Syndication | — | — | — | — | — | — | — | |||||||||||||||||||||
Total charge-offs | (898 | ) | (524 | ) | (867 | ) | (3,032 | ) | (2,542 | ) | (2,289 | ) | (8,691 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | 53 | 217 | 26 | 184 | 424 | 296 | 542 | |||||||||||||||||||||
Commercial real estate | 1 | 2,050 | 1 | — | 1 | 2,052 | 2 | |||||||||||||||||||||
Commercial business | 454 | 828 | 559 | 466 | 492 | 1,841 | 1,853 | |||||||||||||||||||||
Consumer | 167 | 240 | 338 | 538 | 343 | 745 | 1,221 | |||||||||||||||||||||
Small business | 378 | 429 | 392 | 482 | 748 | 1,199 | 2,156 | |||||||||||||||||||||
Syndication | 169 | 77 | 198 | 566 | 236 | 444 | 2,567 | |||||||||||||||||||||
Total recoveries | 1,222 | 3,841 | 1,514 | 2,236 | 2,244 | 6,577 | 8,341 | |||||||||||||||||||||
Net (charge-offs) recoveries | 324 | 3,317 | 647 | (796 | ) | (298 | ) | 4,288 | (350 | ) | ||||||||||||||||||
Provision (recovery) for loan losses | 1,717 | (1,963 | ) | (859 | ) | (1,811 | ) | (1,076 | ) | (1,105 | ) | 1,264 | ||||||||||||||||
Adjustments to acquired loan losses | — | — | — | — | — | — | (734 | ) | ||||||||||||||||||||
Ending allowance for loan losses | $ | 48,778 | 46,737 | 45,383 | 45,595 | 48,202 | 48,778 | 48,202 | ||||||||||||||||||||
Annualized net charge-offs to average loans | (0.03 | )% | (0.35 | ) | (0.07 | ) | 0.09 | 0.03 | (0.15 | ) | 0.01 | |||||||||||||||||
As of | ||||||||||||||||||||
9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 11,352 | 12,711 | 11,724 | 10,803 | 12,041 | ||||||||||||||
Nonaccrual tax certificates | 448 | 586 | 565 | 894 | 859 | |||||||||||||||
Real estate owned | 1,059 | 1,321 | 1,667 | 2,422 | 8,904 | |||||||||||||||
Other repossessed assets | 0 | 0 | 0 | 0 | 274 | |||||||||||||||
Total nonperforming assets | $ | 12,859 | 14,618 | 13,956 | 14,119 | 22,078 | ||||||||||||||
Loan loss allowance to non performing assets | 379.33 | % | 319.72 | 325.19 | 322.93 | 218.33 | ||||||||||||||
Nonperforming assets to total loans and other assets | 0.30 | % | 0.36 | 0.37 | 0.36 | 0.55 | ||||||||||||||
Allowance for loan losses to total loan | 1.17 | % | 1.20 | 1.24 | 1.24 | 1.26 |
Ryan Beck & Co., Inc. Business Segment
Consolidated Statements of Operations and Statistics — Unaudited
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 9/30/2004 | 9/30/2003 | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Principal transactions | $ | 19,393 | 21,654 | 24,443 | 25,288 | 21,093 | 65,490 | 70,235 | ||||||||||||||||||||
Investment banking | 13,835 | 18,026 | 12,631 | 7,318 | 7,642 | 44,492 | 20,410 | |||||||||||||||||||||
Commissions | 18,564 | 22,245 | 25,371 | 22,963 | 21,257 | 66,180 | 62,212 | |||||||||||||||||||||
Interest, dividends and other | 3,727 | 3,949 | 3,416 | 3,683 | 3,451 | 11,092 | 9,269 | |||||||||||||||||||||
Total operating revenues | 55,519 | 65,874 | 65,861 | 59,252 | 53,443 | 187,254 | 162,126 | |||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Compensation, benefits | 35,090 | 40,297 | 44,042 | 36,619 | 35,925 | 119,429 | 110,740 | |||||||||||||||||||||
Professional fees | 1,063 | 1,330 | 1,045 | 3,775 | 2,638 | 3,438 | 6,692 | |||||||||||||||||||||
Communications | 3,182 | 2,916 | 3,128 | 2,916 | 2,822 | 9,226 | 10,867 | |||||||||||||||||||||
Occupancy and equipment | 3,680 | 3,426 | 3,228 | 3,430 | 3,287 | 10,334 | 9,277 | |||||||||||||||||||||
Floor broker and clearing fees | 2,143 | 2,438 | 2,802 | 2,506 | 2,328 | 7,383 | 6,722 | |||||||||||||||||||||
Interest and other | 3,179 | 3,292 | 3,054 | 2,444 | 2,025 | 9,525 | 8,819 | |||||||||||||||||||||
Total operating expenses | 48,337 | 53,699 | 57,299 | 51,690 | 49,025 | 159,335 | 153,117 | |||||||||||||||||||||
Income from Ryan Beck before income taxes | 7,182 | 12,175 | 8,562 | 7,562 | 4,418 | 27,919 | 9,009 | |||||||||||||||||||||
Provision for income taxes | 3,082 | 5,161 | 3,434 | 3,559 | 1,522 | 11,677 | 3,365 | |||||||||||||||||||||
Income from Ryan Beck’s continuing operations | 4,100 | 7,014 | 5,128 | 4,003 | 2,896 | 16,242 | 5,644 | |||||||||||||||||||||
Discontinued operations (GMS), net of tax | — | — | — | — | 306 | — | 1,143 | |||||||||||||||||||||
Net income from Ryan Beck business segment | $ | 4,100 | 7,014 | 5,128 | 4,003 | 3,202 | 16,242 | 6,787 | ||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
GAAP return on equity | 18.44 | % | 33.07 | 26.40 | 20.65 | 17.41 | 24.35 | 12.30 | ||||||||||||||||||||
Continuing operations return on equity | 18.44 | 33.07 | 26.40 | 20.65 | 15.75 | 24.35 | 10.23 | |||||||||||||||||||||
Compensation as a percent of revenues | 63.20 | 61.17 | 66.87 | 61.80 | 67.22 | 63.78 | 68.30 | |||||||||||||||||||||
Commissions to total revenues | 33.44 | 33.77 | 38.52 | 38.75 | 39.78 | 35.34 | 38.37 | |||||||||||||||||||||
Principal transactions to total revenues | 34.93 | 32.87 | 37.11 | 42.68 | 39.47 | 34.97 | 43.32 | |||||||||||||||||||||
Investment banking revenue to total revenues | 24.92 | 27.36 | 19.18 | 12.35 | 14.30 | 23.76 | 12.59 |
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 4,225 | 4,000 | 4,888 | 5,538 | 259 | ||||||||||||||
Securities | 111,944 | 120,953 | 122,114 | 124,565 | 87,837 | |||||||||||||||
Other investments | — | — | — | — | 4,212 | |||||||||||||||
Notes receivable — GMS | 6,438 | 8,551 | 10,261 | 11,971 | 13,681 | |||||||||||||||
Property and equipment, net | 7,748 | 6,762 | 4,749 | 3,713 | 3,599 | |||||||||||||||
Goodwill | 6,184 | 6,184 | 6,184 | 6,184 | 6,184 | |||||||||||||||
Due from clearing agent | 14,478 | 16,048 | — | — | — | |||||||||||||||
Other assets | 24,441 | 25,809 | 28,051 | 26,703 | 27,149 | |||||||||||||||
Total assets | $ | 175,458 | 188,307 | 176,247 | 178,674 | 142,921 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Securities sold not yet purchased | $ | 31,760 | 51,321 | 34,250 | 37,813 | 15,089 | ||||||||||||||
Note payable | — | — | 427 | 801 | 1,176 | |||||||||||||||
Due to clearing agent | — | — | 18,328 | 8,583 | 6,087 | |||||||||||||||
Other liabilities | 54,757 | 52,145 | 45,559 | 53,922 | 47,013 | |||||||||||||||
Total liabilities | 86,517 | 103,466 | 98,564 | 101,119 | 69,365 | |||||||||||||||
Stockholder’s equity | 88,941 | 84,841 | 77,683 | 77,555 | 73,556 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 175,458 | 188,307 | 176,247 | 178,674 | 142,921 | ||||||||||||||
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | 9/30/2004 | 9/30/2003 | |||||||||||||||||||||
Net interest (expense) | $ | (3,683 | ) | (3,583 | ) | (3,592 | ) | (3,804 | ) | (3,676 | ) | (10,858 | ) | (10,818 | ) | |||||||||||||
Income from unconsolidated subsidiaries | 123 | 118 | 118 | 119 | 106 | 359 | 306 | |||||||||||||||||||||
Gains on sales of assets | 2 | 3 | 75 | — | — | 80 | 405 | |||||||||||||||||||||
Litigation settlement | — | — | 22,840 | — | — | 22,840 | — | |||||||||||||||||||||
Employee compensation and benefits | (774 | ) | (743 | ) | (747 | ) | — | — | (2,264 | ) | — | |||||||||||||||||
Cost associated with debt redemption | — | — | — | — | — | — | (1,648 | ) | ||||||||||||||||||||
Other income (expense) | (160 | ) | (755 | ) | (637 | ) | (455 | ) | (587 | ) | (1,552 | ) | (2,371 | ) | ||||||||||||||
Income (loss) from parent company activities before income taxes | (4,492 | ) | (4,960 | ) | 18,057 | (4,140 | ) | (4,157 | ) | 8,605 | (14,126 | ) | ||||||||||||||||
Provision (Benefit) for income taxes | (1,483 | ) | (1,797 | ) | 6,381 | (148 | ) | (1,456 | ) | 3,101 | (4,943 | ) | ||||||||||||||||
Income (loss) from parent company activities from continuing operations | $ | (3,009 | ) | (3,163 | ) | 11,676 | (3,992 | ) | (2,701 | ) | 5,504 | (9,183 | ) | |||||||||||||||
Reconciliation of Operating and business segment income | ||||||||||||||||||||||||||||
Business segment income from continuing operations | $ | (3,009 | ) | (3,163 | ) | 11,676 | (3,992 | ) | (2,701 | ) | 5,504 | (9,183 | ) | |||||||||||||||
Litigation settlement | — | — | (14,785 | ) | — | — | (14,785 | ) | — | |||||||||||||||||||
Cost associated with debt redemption | — | — | — | — | — | — | 1,071 | |||||||||||||||||||||
Operating loss (pretax) | $ | (3,009 | ) | (3,163 | ) | (3,109 | ) | (3,992 | ) | (2,701 | ) | (9,281 | ) | (8,112 | ) | |||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 9/30/2004 | 6/30/2004 | 3/31/2004 | 12/31/2003 | 9/30/2003 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 10,643 | 10,850 | 48,841 | 22,765 | 16,551 | ||||||||||||||
Securities | 62,324 | 61,812 | 21,826 | 20,949 | 17,254 | |||||||||||||||
Notes receivable from related parties | 38,000 | 38,000 | 42,125 | 43,500 | 30,000 | |||||||||||||||
Investment in subsidiaries | 599,462 | 580,834 | 567,139 | 567,411 | 679,253 | |||||||||||||||
Investment in unconsolidated subsidiaries | 7,912 | 7,910 | 7,910 | 7,910 | 12,545 | |||||||||||||||
Other assets | 7,937 | 7,154 | 7,821 | 16,953 | 24,050 | |||||||||||||||
Total assets | $ | 726,278 | 706,560 | 695,662 | 679,488 | 779,653 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 263,366 | 263,366 | 263,366 | 263,366 | 263,318 | ||||||||||||||
Other liabilities | 3,423 | 2,860 | 2,719 | 2,670 | 2,666 | |||||||||||||||
Total liabilities | 266,789 | 266,226 | 266,085 | 266,036 | 265,984 | |||||||||||||||
Stockholders’ equity | 459,489 | 440,334 | 429,577 | 413,452 | 513,669 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 726,278 | 706,560 | 695,662 | 679,488 | 779,653 | ||||||||||||||