BankAtlantic Bancorp Reports Earnings
For The First Quarter 2005
FORT LAUDERDALE, Florida – April 19, 2005 — BankAtlantic Bancorp, Inc. (NYSE: BBX) today announced financial results for the first quarter ended March 31, 2005. Net income was $19.9 million for the quarter vs. $20.5 million earned in the corresponding period in 2004. The 2004 quarter included a $14.7 million after-tax gain recognized in connection with a litigation settlement and $7.6 million of after-tax costs associated with the prepayment of certain high cost debt. Excluding the effect of these items, net income in the first quarter 2004 would have been $13.4 million, compared to $19.9 million in the current quarter, an increase of 49%. Diluted net income per share decreased 3% to $0.31, compared to $0.32 in the prior quarter; and excluding the two items discussed above, diluted earnings per share would have increased 48% to $0.31, up from $0.21 in the first quarter, 2004.
Alan B. Levan, Chairman and Chief Executive Officer of BankAtlantic Bancorp commented, “We are very pleased with the quarter’s results. BankAtlantic’s growth in new low-cost deposits continued at rates among the highest in our industry, asset quality remained very high, and our momentum continues to be truly excellent. Further, Ryan Beck & Co. delivered solid results.
Additional accomplishments and highlights include:
BankAtlantic:
“BankAtlantic’s landmark ‘Florida’s Most Convenient Bank’initiative continues to result in impressive growth in new customer generation. Since January 2002, BankAtlantic has opened nearly 465,000 new checking and savings accounts, including nearly 55,000 in the first quarter of 2005. Balances in low cost deposits increased 25% over the first quarter of 2004 to a total of $1.9 billion at quarter-end, and on a “same store” basis, the increase was 27%. 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 26% of deposit funding, up from 24% a year ago, and 13% before the initiation of the program. The sustained growth in core deposits continues to exceed our initial goals and reinforces our belief that customers place a high value on the unique and unparalleled convenience offered by BankAtlantic.
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Following is the comparative data of Period-end Balances:
Period-end Balances
Annual, Year-over-Year
2004 | 2003 | Change | ||||||||||
Checking (DDA/NOW) | $ | 1,549.1 | $ | 1,179.2 | +31.4 | % | ||||||
Savings | $ | 270.0 | $ | 209.0 | +29.2 | % | ||||||
Total | $ | 1,819.1 | $ | 1,388.2 | +31.0 | % |
Quarterly, Year-over-Year
1Q'05 | 1Q'04 | Change | ||||||||||
Checking (DDA/NOW) | $ | 1,637.1 | $ | 1,316.1 | +24.4 | % | ||||||
Savings | $ | 296.5 | $ | 233.8 | +26.8 | % | ||||||
Total | $ | 1,933.6 | $ | 1,549.9 | +24.8 | % |
“The tax equivalent net interest margin improved to 3.88% in the first quarter of 2005 vs. 3.73% in the first quarter 2004, but down slightly from the 3.91% in the fourth quarter 2004. The decline from the 2004 fourth quarter net interest margin is attributable to acquisitions of securities and residential loans made late in that quarter, and offsets what we believe to be good fundamental growth in our margin from core banking activities. The core net interest margin reflects the growth in our low cost deposits and higher yields on commercial, consumer, and small business loans. Although a shift in the slope of the yield curve could moderate further margin improvement, we believe BankAtlantic is capable of achieving gradual further margin improvement in a rising interest rate environment.
“Asset quality continued to be positive with the ratio of non-performing loans to total loans declining from 0.17% at December 31, 2004 to 0.14% at March 31, 2005. During the quarter, the Bank had net recoveries of $948,000 vs. net recoveries of $647,000 for the first quarter of 2004. The primary contributor to the net recovery for the quarter was a $1.1 million partial recovery of a loan charged off in 2003. The net recoveries, coupled with continuing asset quality improvement, the continued liquidation of discontinued loan portfolios, and the repayment of a large classified loan resulted in a negative provision for the quarter of $3.9 million vs. a negative provision in the first quarter of 2004 of $859,000.
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“Loan production remained strong, with loan totals growing 27% to $4.7 billion in the first quarter 2005, vs. $3.7 billion at March 31, 2004. Average consumer loans grew 30%, and average small business loans were up 13% in the first quarter. Residential loan purchases in the second half of 2004 led to a large year-over-year increase in those loans.
“In January, BankAtlantic commenced several new initiatives — a new program of ‘midnight hours’ at selected stores, extended hours in all locations, and ‘Totally Free Online Banking & Bill Pay.’ The ‘midnight hours’ provide customers with full-service banking at times convenient to their busy schedules by staying open 7 days a week from 7:30 a.m. to midnight. We have five stores that are open until midnight, selected on the basis of demographics that we believe will find this convenience especially attractive. Earlier this quarter, we announced that beginning Labor Day, 2005, all BankAtlantic stores, with the exception of the five Midnight locations, will be open from 7:30 AM to 8:00 PM for lobby and drive-up services six days a week, Monday through Saturday, and 11:00 AM to 4:00 PM on Sundays. BankAtlantic’s ‘Totally Free Online Banking & Bill Pay’ is free for small business and retail customers, has no additional fees and no restrictions on the number of payments, and makes account management and monthly bill paying both affordable and convenient.
“During the quarter we launched the latest addition to the BankAtlantic ATM fleet. In partnership with Cunard, one of the world’s largest international cruise lines, the BankAtlantic network of ATM’s now includes ports of call around the globe aboard the Queen Mary 2. The addition of Cunard Lines brings BankAtlantic’s cruise ship ATM business into five of the largest cruise lines serving the United States.
The previously announced regulatory compliance issue, involving deficiencies in our compliance with the USA Patriot Act, the Bank Secrecy Act and related anti-money laundering laws, continues to require bank resources and considerable management focus. We believe that we have taken significant corrective action in respect to identified deficiencies, and are now operating with increased staff levels and enhanced systems capabilities. Resolution of the issues raised by the deficiencies identified remains uncertain. The possibility of regulatory action, including significant financial penalties, and restrictions on BankAtlantic’s operations may be imposed, and no estimate of a date for resolution of this matter can be given. A more detailed discussion of this matter is contained below under “Compliance Matter.”
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Ryan Beck & Co.:
“For the first quarter 2005, Ryan Beck & Co. reported operating revenues of $57.6 million, and net income of $2.5 million. Return on average tangible equity was 11.9% for the first quarter 2005 vs. 28.3% in the first quarter 2004. Revenues from Ryan Beck & Co.’s Private Client Group were $38.9 million in the first quarter 2005, vs. $43.9 million at March 31, 2004. The decline comes as investors were less active in the securities markets during the 2005 period. For the first quarter 2005, Capital Markets revenues were $8.1 million, vs. $9.8 million in the comparable 2004 period, and Investment Banking revenues were $9.9 million, vs. $10.9 million in the comparable 2004 period.
“During the quarter, Ryan Beck’s financial institutions group announced or completed seven deals, three of which were Merger & Acquisition (M&A) transactions. Ryan Beck ranked third nationally in number of M&A transactions for the first quarter, 2005. (Source: SNL Securities, as of 4/6/05).
“Consistent with its 2005 business plan, Ryan Beck expanded its Capital Markets Group with the hiring of 21 institutional equity and fixed income trading and sales professionals, along with six equity research professionals. It is anticipated that the new hires will significantly increase Ryan Beck’s ability to service institutional investors, benefit both institutional and retail investors, and will result in research coverage for three new sectors, including Aerospace, Defense and Homeland Security, Healthcare Services, and Real Estate Investment Trusts (REITs). During the quarter, Ryan Beck also continued its active recruiting program for Financial Consultants, with significant additions throughout its system. The Private Client Group also relocated its New Haven, CT office to a larger, more modern facility in Hamden, CT, and upgraded and refurbished its Allentown, Pennsylvania and Shrewsbury, New Jersey offices.
“Ryan Beck launched a new, proprietary unit investment trust, the ‘Ryan Beck Select Core Equity Portfolio.’ Through an investment in equity securities, the ‘Select Core Equity Portfolio’s objective is to achieve above-average total return through a combination of capital appreciation and dividend income. As of the first quarter 2005, the total assets in the trust amounted to $42 million.
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“Ryan Beck continued its no-nonsense ‘Let’s Get Down to Work’ advertising campaign. Utilizing local cable stations and rail platforms, the campaign’s demographic target market focuses in Northern and Central New Jersey, Long Island, Lower Connecticut, Westchester and Rockland counties, concluded Levan.
Financial Highlights:
First Quarter, 2005 Compared to First Quarter, 2004
BankAtlantic Bancorp — consolidated:
• | Net income of $19.9 million vs. $20.5 million. Excluding an after-tax gain of $14.7 million from a litigation settlement and a $7.6 million after-tax expense resulting from early redemption of debt, net income would have been $19.9 million vs. $13.4 million, an increase of 49%. | |||
• | Earnings per share of $0.31 vs. $0.32. Excluding the effects of the 2004 litigation settlement and debt redemption, diluted earnings per share would have been $0.31 vs. $0.21, an increase of 48%. | |||
• | Return on average tangible equity was 20.20%. | |||
• | Book value per share rose to $7.94. |
BankAtlantic:
• | Business segment net income, excluding the $7.6 million after-tax expense of debt redemption in 2004, was $20.9 million vs. $11.4 million, an increase of 83%. | |||
• | Return on average tangible assets was 1.40%. | |||
• | Return on average tangible equity was 18.60%. | |||
• | Tax equivalent net interest margin increased to 3.88% vs. 3.73% | |||
• | Non-interest income was $23.5 million vs. $18.2 million, an increase of 29%. | |||
• | Non-interest expense, excluding the $11.7 million in pre-tax expense associated with debt redemption, grew to $50.3 million vs. $41.8 million, an increase of 20%. |
Ryan Beck & Co.:
• | Business segment income decreased to $2.5 million vs. $5.1 million. | |||
• | Return on average tangible equity was 11.87%. |
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• | Total operating revenues decreased to $57.6 million vs. $65.9 million. | |||
• | Principal transaction revenue was $19.8 million vs. $24.4 million. | |||
• | Investment banking revenue decreased to $11.9 million vs. $12.6 million. | |||
• | Commission income was $20.3 million vs. $25.4 million. |
Compliance Matter:
BankAtlantic previously reported that it had identified deficiencies in BankAtlantic’s compliance with the USA PATRIOT Act, anti-money laundering laws and the Bank Secrecy Act and that it has been cooperating with regulators and other federal agencies concerning these deficiencies. BankAtlantic has provided and is continuing to provide information to the government pursuant to a number of subpoenas relating to, among other things, numerous customers and transactions and the Bank’s policies and procedures. BankAtlantic Bancorp cannot predict whether or to what extent civil or criminal regulatory action or monetary or other penalties will be pursued against the Bank or the Company by regulators or other federal agencies.
Recently, Riggs Bank, N.A. announced that it had consented to a $25 million civil money penalty paid to the Department of the Treasury, assessed concurrently by the Financial Crimes Enforcement Network (FinCEN”) and the Office of the Comptroller of the Currency, for willful, systemic violation of the anti-money laundering program and suspicious activity and currency transaction requirements of the Bank Secrecy Act. Riggs Bank, N.A. also announced that it has resolved an investigation into its Bank Secrecy Act compliance by pleading guilty to a count of failing to file timely and/or accurate Suspicious Activity Reports, paid a $16 million fine and agreed to a five-year period of corporate probation. Riggs National Corporation, the holding company for Riggs Bank, N.A., also consented to the issuance of a Cease and Desist Order relating to future compliance and board oversight, which, among other things, prohibits the declaration or payment of dividends on its stock or distributions of interest, principal or other sums with respect to debentures issued in connection with its trust preferred securities, or redeem or repurchase any of its stock without regulatory approval.
Further, AmSouth Corporation (“AmSouth”) and AmSouth Bank disclosed that they entered into a deferred prosecution agreement with the U.S. Attorney relating to deficiencies in the bank’s reporting of
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suspicious activities under the Bank Secrecy Act. AmSouth also announced that it entered into a Cease and Desist Order with the Federal Reserve and the Alabama Department of Banking and an order with FinCEN relating to deficiencies in AmSouth’s compliance with the Bank Secrecy Act. AmSouth announced that under the deferred prosecution agreement, it agreed to make a payment of $40 million to the United States and, in connection with the Federal Reserve and FinCEN orders, was assessed a $10 million civil money penalty. AmSouth also disclosed that in connection with the Cease and Desist Order, the Federal Reserve indicated it would restrict AmSouth’s expansion activities until such time as the Federal Reserve believes the company is in substantial compliance with the requirements of the order. AmSouth further disclosed that the Cease and Desist Order requires specific actions, including steps to comply with the Bank Secrecy Act.
Other financial institutions have also been required to enter into regulatory agreements and to pay fines and assessments with respect to their activities. BankAtlantic Bancorp and BankAtlantic may be the subject of similar civil and criminal regulatory proceedings and actions and may be required to pay fines or penalties which may be similar to, greater than or less than those imposed on other institutions.
- — - — - — - — - -
BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Wednesday, April 20, 2005, 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 number5456453.
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, May 20, 2005. 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 is5456453.
Webcast Information:
Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visit www.BankAtlanticBancorp.com, access the “Investor Relations” section
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and click on the “Webcast” navigation link. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Friday, May 20, 2005.
BankAtlantic Bancorp’s first quarter, 2005 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. |
Additional copies of BankAtlantic Bancorp’s first quarter, 2005 earnings results press release and financial summary, and the Supplemental Financials will also be made 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 stores throughout Florida and its online banking division - BankAtlantic.com. BankAtlantic has 75 stores and operates more than 200 conveniently located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, including several stores open until midnight, Totally Free Online Banking & Bill Pay, 24/7 Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift.
About Ryan Beck & Co.:
Founded in 1946, Ryan Beck & Co., Inc. provides financial advice and innovative solutions to individuals, institutions and corporate clients through the activities of approximately 1,100 employees in 39 offices located in 14 states. For individual investors, the firm’s Private Client Group provides a full range of financial services, including investment consulting, retirement plans, insurance and investment
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advisory services. Institutional clients benefit from the market making, underwriting and distribution activities of the firm’s experienced Capital Markets Group, which encompasses equity and fixed income trading and institutional sales as well as research. Through its Investment Banking Groups, Ryan Beck raises capital and provides financial advisory services to financial institutions, middle market companies and municipalities.
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 our website:www.BankAtlanticBancorp.com.
BankAtlantic Bancorp Contact Info:
Investor Relations & Corporate Communications:
Donna Rouzeau, Assistant Vice President
Email:CorpComm@BankAtlanticBancorp.com
Investor Relations:
Leo Hinkley, Senior Vice President
Email:InvestorRelations@BankAtlanticBancorp.com
Phone: (954) 760-5317,Fax: (954) 760-5415
Mailing Address: BankAtlantic Bancorp, Investor Relations, 1750 East Sunrise Blvd., Fort
Lauderdale, FL 33304
BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Public Relations:
Telephone: (954) 760-5383, Fax: (954) 760-5388, Email:hhess@BankAtlantic.com
Public Relations for BankAtlantic:
Boardroom Communications
Caren Berg
Phone: (954) 370-8999, Fax: (954) 370-8892, Email:caren@boardroompr.com
# # #
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. When used in this press release and in any documents incorporated by reference herein, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify certain of such forward-looking statements. Actual
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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 including their impact on BankAtlantic’s net interest margin; adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on our activities and the value of our assets; BankAtlantic’s seven-day banking initiative and other growth initiatives not being successful or producing results which do not justify their costs; the impact of periodic testing of goodwill and other intangible assets for impairment; achieving the benefits of the prepayment of the Federal Home Loan Bank advances; as well as the costs related to the correction of compliance deficiencies associated with the USA Patriot Act, anti-money laundering laws and the Bank Secrecy Act, and whether or to what extent monetary fines, restrictions on operations or other penalties relating to these compliance deficiencies will be imposed on the Company or the Bank by regulators or other federal agencies. 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, its ability to recruit and retain financial consultants, the volatility of the stock market and fixed income markets, as well as its revenue mix, the success of new lines of business and additional risks and uncertainties that are subject to change and may be outside of Ryan Beck’s control. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission. The Company cautions that the foregoing factors are not exclusive.
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BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)
For The Three Months Ended | ||||||||||||||||||||||||||||
3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | ||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||
Net income (GAAP basis) | $ | 19,878 | 17,293 | 14,691 | 18,260 | 20,524 | ||||||||||||||||||||||
Operating net income | (note 1) | $ | 19,878 | 17,293 | 14,691 | 18,260 | 13,371 | |||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||
Basic | 60,072 | 59,827 | 59,687 | 59,344 | 59,257 | |||||||||||||||||||||||
Diluted | 63,207 | 63,156 | 63,110 | 62,808 | 63,193 | |||||||||||||||||||||||
Key Performance Ratios (GAAP basis): | ||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.33 | 0.29 | 0.25 | 0.31 | 0.35 | ||||||||||||||||||||||
Diluted earnings per share * | $ | 0.31 | 0.27 | 0.23 | 0.29 | 0.32 | ||||||||||||||||||||||
Return on average tangible assets | (note 2) | % | 1.27 | 1.19 | 1.09 | 1.48 | 1.75 | |||||||||||||||||||||
Return on average tangible equity | (note 2) | % | 20.20 | 18.34 | 16.18 | 21.18 | 24.97 | |||||||||||||||||||||
Key Performance Ratios (Operating basis): | ||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.33 | 0.29 | 0.25 | 0.31 | 0.23 | ||||||||||||||||||||||
Diluted earnings per share * | $ | 0.31 | 0.27 | 0.23 | 0.29 | 0.21 | ||||||||||||||||||||||
Return on average tangible assets | (note 2) | % | 1.27 | 1.19 | 1.09 | 1.48 | 1.14 | |||||||||||||||||||||
Return on average tangible equity | (note 2) | % | 20.20 | 18.34 | 16.18 | 21.18 | 16.27 | |||||||||||||||||||||
* Diluted earnings per share calculation deducts (in thousands): | ||||||||||||||||||||||||||||
Subsidiaries stock options, if dilutive | $ | (120 | ) | (51 | ) | (152 | ) | (273 | ) | (192 | ) | |||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||
Assets | $ | 6,355 | 5,877 | 5,478 | 5,023 | 4,792 | ||||||||||||||||||||||
Tangible assets | (note 2) | $ | 6,268 | 5,790 | 5,390 | 4,935 | 4,703 | |||||||||||||||||||||
Loans | $ | 4,668 | 4,359 | 4,032 | 3,777 | 3,731 | ||||||||||||||||||||||
Investments | $ | 1,242 | 1,076 | 1,018 | 819 | 668 | ||||||||||||||||||||||
Deposits and escrows | $ | 3,557 | 3,371 | 3,283 | 3,205 | 3,065 | ||||||||||||||||||||||
Stockholders’ equity | $ | 480 | 468 | 452 | 436 | 423 | ||||||||||||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 394 | 377 | 363 | 345 | 329 |
Notes:
(1) | Operating net income is defined as GAAP net income adjusted for revenue from a litigation settlement and costs associated with debt redemptions, net of tax. | |||
(2) | 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. | |||
** | 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. |
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BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
(In thousands, except share data) | 3/31/2005 | 12/31/2004 | 3/31/2004 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 119,915 | 118,967 | 114,849 | ||||||||
Short term investments | 16,832 | 16,093 | 1,953 | |||||||||
Securities available for sale (at fair value) | 762,573 | 747,160 | 358,665 | |||||||||
Securities owned (at fair value) | 142,294 | 125,443 | 122,114 | |||||||||
Investment securities and tax certificates (approximate fair value: $298,950, $306,963 and $139,075) | 302,498 | 307,438 | 139,075 | |||||||||
Loans receivable, net of allowance for loan losses of $43,042, $46,010 and $45,383 | 4,637,232 | 4,599,048 | 3,674,173 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 80,600 | 78,619 | 30,340 | |||||||||
Accrued interest receivable | 38,864 | 35,982 | 26,781 | |||||||||
Real estate held for development and sale | 24,799 | 27,692 | 24,239 | |||||||||
Investments and advances in unconsolidated subsidiaries | 7,910 | 7,910 | 7,910 | |||||||||
Office properties and equipment, net | 132,438 | 129,790 | 96,628 | |||||||||
Deferred tax asset, net | 22,971 | 20,269 | 17,751 | |||||||||
Goodwill | 76,674 | 76,674 | 76,674 | |||||||||
Core deposit intangible asset | 9,597 | 10,270 | 11,546 | |||||||||
Due from clearing agent | 1,120 | 16,619 | — | |||||||||
Other assets | 42,034 | 38,803 | 47,785 | |||||||||
Total assets | $ | 6,418,351 | 6,356,777 | 4,750,483 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits | ||||||||||||
Demand | $ | 960,063 | 890,398 | 748,402 | ||||||||
NOW | 676,945 | 658,137 | 567,498 | |||||||||
Savings | 296,485 | 270,001 | 233,832 | |||||||||
Money market | 913,434 | 875,422 | 870,447 | |||||||||
Certificates of deposit | 796,928 | 763,244 | 723,256 | |||||||||
Total deposits | 3,643,855 | 3,457,202 | 3,143,435 | |||||||||
Advances from FHLB | 1,524,881 | 1,544,497 | 591,466 | |||||||||
Securities sold under agreements to repurchase | 217,463 | 296,643 | 118,465 | |||||||||
Federal funds purchased | 75,000 | 105,000 | 25,000 | |||||||||
Subordinated debentures, notes and bonds payable | 35,878 | 37,741 | 37,109 | |||||||||
Junior subordinated debentures | 263,266 | 263,266 | 263,266 | |||||||||
Securities sold but not yet purchased | 60,276 | 39,462 | 34,250 | |||||||||
Due to clearing agent | — | — | 18,328 | |||||||||
Other liabilities | 116,751 | 143,701 | 89,587 | |||||||||
Total liabilities | 5,937,370 | 5,887,512 | 4,320,906 | |||||||||
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 55,665,968, 55,214,225 and 54,331,830 shares | 556 | 552 | 543 | |||||||||
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 | 260,207 | 259,702 | 255,915 | |||||||||
Unearned compensation — restricted stock grants | (957 | ) | (1,001 | ) | (1,134 | ) | ||||||
Retained earnings | 228,714 | 210,955 | 166,882 | |||||||||
Total stockholders’ equity before accumulated other comprehensive income | 488,569 | 470,257 | 422,255 | |||||||||
Accumulated other comprehensive income (loss) | (7,588 | ) | (992 | ) | 7,322 | |||||||
Total stockholders’ equity | 480,981 | 469,265 | 429,577 | |||||||||
Total liabilities and stockholders’ equity | $ | 6,418,351 | 6,356,777 | 4,750,483 | ||||||||
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BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
For The Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | |||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||
Interest and fees on loans | $ | 66,355 | 60,088 | 52,661 | 48,034 | 48,936 | ||||||||||||||
Interest on securities available for sale | 5,295 | 4,905 | 4,974 | 4,584 | 3,620 | |||||||||||||||
Interest on tax exempt securities | 3,225 | 2,076 | 1,329 | 610 | 33 | |||||||||||||||
Interest and dividends on investments and securities owned | 7,311 | 7,377 | 7,409 | 6,879 | 7,040 | |||||||||||||||
Total interest income | 82,186 | 74,446 | 66,373 | 60,107 | 59,629 | |||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||
Interest on deposits | 8,295 | 7,534 | 7,060 | 6,788 | 6,973 | |||||||||||||||
Interest on advances from FHLB | 13,674 | 11,458 | 9,364 | 7,769 | 9,098 | |||||||||||||||
Interest on short-term borrowed funds | 2,099 | 1,356 | 953 | 632 | 250 | |||||||||||||||
Interest on long-term debt | 5,672 | 5,112 | 5,034 | 4,912 | 4,827 | |||||||||||||||
Capitalized interest on real estate developments | (452 | ) | (390 | ) | (355 | ) | (346 | ) | (307 | ) | ||||||||||
Total interest expense | 29,288 | 25,070 | 22,056 | 19,755 | 20,841 | |||||||||||||||
NET INTEREST INCOME | 52,898 | 49,376 | 44,317 | 40,352 | 38,788 | |||||||||||||||
Provision (recovery) for loan losses | (3,916 | ) | (4,004 | ) | 1,717 | (1,963 | ) | (859 | ) | |||||||||||
NET INTEREST INCOME AFTER PROVISION | 56,814 | 53,380 | 42,600 | 42,315 | 39,647 | |||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||
Service charges on deposits | 12,989 | 13,637 | 13,493 | 13,028 | 11,277 | |||||||||||||||
Other service charges and fees | 5,238 | 6,733 | 5,819 | 6,431 | 4,637 | |||||||||||||||
Broker/dealer revenue | 51,999 | 51,787 | 51,792 | 61,925 | 62,445 | |||||||||||||||
Securities activities, net | 102 | 3,653 | 2 | 3 | 72 | |||||||||||||||
Litigation settlement | — | — | — | — | 22,840 | |||||||||||||||
Gain on sales of loans | 110 | 152 | 86 | 116 | 129 | |||||||||||||||
Income from real estate operations | 2,241 | 517 | 900 | 683 | 305 | |||||||||||||||
Income from unconsolidated subsidiaries | 131 | 126 | 123 | 118 | 118 | |||||||||||||||
Other | 5,860 | 3,300 | 2,959 | 3,041 | 2,542 | |||||||||||||||
Total non-interest income | 78,670 | 79,905 | 75,174 | 85,345 | 104,365 | |||||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||||||
Employee compensation and benefits | 65,795 | 65,354 | 58,992 | 63,538 | 67,180 | |||||||||||||||
Occupancy and equipment | 13,237 | 14,753 | 11,782 | 11,236 | 10,375 | |||||||||||||||
Advertising and promotion | 6,298 | 5,955 | 4,757 | 5,630 | 4,694 | |||||||||||||||
Professional fees | 3,126 | 6,398 | 4,356 | 2,610 | 2,737 | |||||||||||||||
Communications | 3,205 | 3,301 | 3,182 | 2,916 | 3,128 | |||||||||||||||
Floor broker and clearing fees | 2,368 | 2,452 | 2,143 | 2,438 | 2,802 | |||||||||||||||
Cost associated with debt redemption | — | — | — | — | 11,741 | |||||||||||||||
Other | 10,756 | 9,307 | 9,405 | 9,534 | 9,357 | |||||||||||||||
Total non-interest expenses | 104,785 | 107,520 | 94,617 | 97,902 | 112,014 | |||||||||||||||
Income before income taxes | 30,699 | 25,765 | 23,157 | 29,758 | 31,998 | |||||||||||||||
Provision for income taxes | 10,821 | 8,472 | 8,466 | 11,498 | 11,474 | |||||||||||||||
GAAP net income | $ | 19,878 | 17,293 | 14,691 | 18,260 | 20,524 | ||||||||||||||
Reconciliation of Operating and GAAP Net Income | ||||||||||||||||||||
GAAP net income | $ | 19,878 | 17,293 | 14,691 | 18,260 | 20,524 | ||||||||||||||
Costs associated with debt redemption | — | — | — | — | 7,632 | |||||||||||||||
Litigation settlement | — | — | — | — | (14,785 | ) | ||||||||||||||
Operating net income(note 1) | $ | 19,878 | 17,293 | 14,691 | 18,260 | 13,371 | ||||||||||||||
3
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
For the three months ended | ||||||||||||||||||||
(in thousands except percentages and per share data) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | |||||||||||||||
Loans: | ||||||||||||||||||||
Residential real estate | $ | 2,085,473 | 1,812,018 | 1,583,353 | 1,386,482 | 1,326,061 | ||||||||||||||
Commercial real estate | 1,764,927 | 1,743,952 | 1,670,928 | 1,650,763 | 1,701,012 | |||||||||||||||
Consumer | 487,746 | 467,716 | 438,205 | 403,824 | 374,222 | |||||||||||||||
Lease financing | 6,242 | 8,219 | 9,738 | 11,526 | 13,642 | |||||||||||||||
Commercial business | 128,372 | 136,391 | 142,022 | 142,686 | 141,955 | |||||||||||||||
Small business | 195,733 | 190,849 | 187,536 | 182,171 | 173,890 | |||||||||||||||
Total Loans | 4,668,493 | 4,359,145 | 4,031,782 | 3,777,452 | 3,730,782 | |||||||||||||||
Investments — taxable | 877,003 | 823,903 | 845,286 | 745,854 | 664,907 | |||||||||||||||
Investments — tax exempt | 364,824 | 251,699 | 172,328 | 72,958 | 3,362 | |||||||||||||||
Total interest earning assets | 5,910,320 | 5,434,747 | 5,049,396 | 4,596,264 | 4,399,051 | |||||||||||||||
Goodwill and core deposit intangibles | 86,791 | 87,164 | 87,591 | 88,034 | 88,448 | |||||||||||||||
Other non-interest earning assets | 358,024 | 354,815 | 340,979 | 338,507 | 304,254 | |||||||||||||||
Total assets | $ | 6,355,135 | 5,876,726 | 5,477,966 | 5,022,805 | 4,791,753 | ||||||||||||||
Tangible assets (note 2) | $ | 6,268,344 | 5,789,562 | 5,390,375 | 4,934,771 | 4,703,305 | ||||||||||||||
Deposits: | ||||||||||||||||||||
Demand deposits | $ | 912,897 | 845,797 | 791,639 | 754,975 | 664,410 | ||||||||||||||
Savings | 281,512 | 262,549 | 250,286 | 242,506 | 220,005 | |||||||||||||||
NOW | 664,313 | 622,308 | 590,787 | 586,259 | 543,619 | |||||||||||||||
Money markt | 921,382 | 903,602 | 931,596 | 912,065 | 866,767 | |||||||||||||||
Certificates of deposit | 777,353 | 736,704 | 718,826 | 709,523 | 769,949 | |||||||||||||||
Total deposits | 3,557,457 | 3,370,960 | 3,283,134 | 3,205,328 | 3,064,750 | |||||||||||||||
Short-term borrowed funds | 352,911 | 266,840 | 283,011 | 269,423 | 128,130 | |||||||||||||||
FHLB advances | 1,536,434 | 1,339,051 | 1,036,651 | 696,661 | 760,973 | |||||||||||||||
Long-term debt | 300,551 | 299,741 | 299,596 | 299,931 | 299,878 | |||||||||||||||
Total borrowings | 2,189,896 | 1,905,632 | 1,619,258 | 1,266,015 | 1,188,981 | |||||||||||||||
Other liabilities | 128,233 | 132,047 | 123,750 | 115,610 | 114,540 | |||||||||||||||
Total liabilities | 5,875,586 | 5,408,639 | 5,026,142 | 4,586,953 | 4,368,271 | |||||||||||||||
Stockholders’ equity | 479,549 | 468,087 | 451,824 | 435,852 | 423,482 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,355,135 | 5,876,726 | 5,477,966 | 5,022,805 | 4,791,753 | ||||||||||||||
Other comprehensive income (loss) in stockholders’ equity | $ | (949 | ) | 3,656 | 1,065 | 2,986 | 6,320 | |||||||||||||
Tangible stockholders’ equity (note 2) | $ | 393,707 | 377,267 | 363,168 | 344,832 | 328,714 | ||||||||||||||
Period End | ||||||||||||||||||||
Total loans, net | $ | 4,637,232 | 4,599,048 | 4,176,571 | 3,899,099 | 3,674,173 | ||||||||||||||
Total assets | 6,418,351 | 6,356,777 | 5,678,612 | 5,428,378 | 4,750,483 | |||||||||||||||
Total stockholders’ equity | 480,981 | 469,265 | 459,489 | 440,334 | 429,577 | |||||||||||||||
Common shares outstanding | 60,542,092 | 60,090,349 | 59,874,084 | 59,779,407 | 59,207,954 | |||||||||||||||
Cash dividends | 2,118,973 | 2,103,164 | 2,095,600 | 1,972,775 | 1,953,863 | |||||||||||||||
Common stock cash dividends per share | 0.035 | 0.035 | 0.035 | 0.033 | 0.033 | |||||||||||||||
Closing stock price | 17.40 | 19.90 | 18.32 | 18.45 | 16.96 | |||||||||||||||
High stock price for the quarter | 20.00 | 20.08 | 19.25 | 18.53 | 19.00 | |||||||||||||||
Low stock price for the quarter | 17.02 | 16.06 | 17.40 | 14.37 | 13.70 | |||||||||||||||
Book value per share | 7.94 | 7.81 | 7.67 | 7.37 | 7.26 |
4
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | |||||||||||||||
Net interest income | $ | 54,345 | 50,339 | 45,380 | 41,344 | 39,795 | ||||||||||||||
Provision (recovery) for loan losses | (3,916 | ) | (4,004 | ) | 1,717 | (1,963 | ) | (859 | ) | |||||||||||
Net Interest income after provision for loan losses | 58,261 | 54,343 | 43,663 | 43,307 | 40,654 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposits | 12,989 | 13,637 | 13,493 | 13,028 | 11,277 | |||||||||||||||
Other service charges and fees | 5,238 | 6,733 | 5,819 | 6,431 | 4,637 | |||||||||||||||
Securities gains (losses) | 7 | 40 | — | — | (3 | ) | ||||||||||||||
Gain on sales of loans | 110 | 152 | 86 | 116 | 129 | |||||||||||||||
Income from real estate operations | 2,241 | 517 | 900 | 683 | 305 | |||||||||||||||
Other non-interest income | 2,956 | 1,924 | 2,034 | 1,911 | 1,875 | |||||||||||||||
Total non-interest income | 23,541 | 23,003 | 22,332 | 22,169 | 18,220 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Employee compensation and benefits | 26,398 | 25,136 | 23,128 | 22,498 | 22,392 | |||||||||||||||
Occupancy and equipment | 9,117 | 9,658 | 8,100 | 7,809 | 7,146 | |||||||||||||||
Advertising | 5,168 | 5,087 | 3,301 | 4,161 | 3,463 | |||||||||||||||
Professional fees | 1,666 | 4,366 | 3,312 | 807 | 1,258 | |||||||||||||||
Cost associated with debt redemption | — | — | — | — | 11,741 | |||||||||||||||
Other | 7,915 | 7,417 | 7,689 | 7,658 | 7,495 | |||||||||||||||
Total non-interest expense | 50,264 | 51,664 | 45,530 | 42,933 | 53,495 | |||||||||||||||
Income from bank operations business segment before income taxes | 31,538 | 25,682 | 20,465 | 22,543 | 5,379 | |||||||||||||||
Provision for income taxes | 10,677 | 8,870 | 6,866 | 8,134 | 1,659 | |||||||||||||||
Net income from bank operations business segment | $ | 20,861 | 16,812 | 13,599 | 14,409 | 3,720 | ||||||||||||||
Reconciliation of Operating and business segment net income | ||||||||||||||||||||
Business segment income | $ | 20,861 | 16,812 | 13,599 | 14,409 | 3,720 | ||||||||||||||
Cost associated with debt redemption | — | — | — | — | 7,632 | |||||||||||||||
Operating net income | $ | 20,861 | 16,812 | 13,599 | 14,409 | 11,352 | ||||||||||||||
5
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
For the Three Months Ended | ||||||||||||||||||||
(in thousands except percentages | ||||||||||||||||||||
and per share data) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | |||||||||||||||
Statistics: | ||||||||||||||||||||
Average earning assets | $ | 5,696,192 | 5,225,840 | 4,843,628 | 4,422,181 | 4,220,559 | ||||||||||||||
Average interest bearing liabilities | $ | 4,575,247 | 4,172,665 | 3,851,388 | 3,483,903 | 3,347,890 | ||||||||||||||
Average tangible assets | $ | 5,979,211 | 5,492,505 | 5,090,496 | 4,673,936 | 4,460,627 | ||||||||||||||
Average tangible equity | $ | 448,667 | 435,787 | 425,437 | 409,215 | 410,062 | ||||||||||||||
Tax equivalent: | ||||||||||||||||||||
Yield on earning assets | % | 5.64 | 5.50 | 5.25 | 5.16 | 5.34 | ||||||||||||||
Cost of interest-bearing liabilities | % | 2.19 | 1.99 | 1.85 | 1.82 | 2.02 | ||||||||||||||
Interest spread | % | 3.45 | 3.51 | 3.40 | 3.34 | 3.32 | ||||||||||||||
Net interest margin | % | 3.88 | 3.91 | 3.78 | 3.73 | 3.73 | ||||||||||||||
GAAP: | ||||||||||||||||||||
Efficiency ratio | % | 64.54 | 70.44 | 67.24 | 67.60 | 92.21 | ||||||||||||||
Return on average tangible assets | % | 1.40 | 1.22 | 1.07 | 1.23 | 0.33 | ||||||||||||||
Return on average tangible equity | % | 18.60 | 15.43 | 12.79 | 14.08 | 3.63 | ||||||||||||||
Operating (1): | ||||||||||||||||||||
Efficiency ratio | % | 64.54 | 70.44 | 67.24 | 67.60 | 71.97 | ||||||||||||||
Return on average tangible assets | % | 1.40 | 1.22 | 1.07 | 1.23 | 1.02 | ||||||||||||||
Return on average tangible equity | % | 18.60 | 15.43 | 12.79 | 14.08 | 11.07 |
(1) Ratios have been adjusted to exclude costs associated with debt redemptions.
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(In thousands) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable | $ | 4,616,846 | 4,554,952 | 4,132,133 | 3,852,549 | 3,621,787 | ||||||||||||||
Held to maturity securities | 376,298 | 378,912 | 215,420 | 236,400 | 167,615 | |||||||||||||||
Available for sale securities | 695,154 | 700,642 | 648,043 | 639,581 | 338,639 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 9,597 | 10,270 | 10,695 | 11,121 | 11,546 | |||||||||||||||
Other assets | 335,215 | 329,723 | 308,894 | 312,583 | 284,703 | |||||||||||||||
Total assets | $ | 6,103,599 | 6,044,988 | 5,385,674 | 5,122,723 | 4,494,779 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 960,152 | 890,919 | 782,677 | 787,945 | 748,533 | ||||||||||||||
NOW | 676,945 | 658,137 | 590,051 | 584,658 | 567,498 | |||||||||||||||
Savings | 296,485 | 270,001 | 252,408 | 251,218 | 233,832 | |||||||||||||||
Total low cost deposits | 1,933,582 | 1,819,057 | 1,625,136 | 1,623,821 | 1,549,863 | |||||||||||||||
Money market | 913,434 | 875,422 | 893,315 | 906,865 | 870,447 | |||||||||||||||
Certificate of deposits | 796,928 | 763,244 | 724,601 | 719,545 | 723,256 | |||||||||||||||
Total deposits | 3,643,944 | 3,457,723 | 3,243,052 | 3,250,231 | 3,143,566 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,524,881 | 1,544,497 | 1,249,112 | 883,727 | 591,466 | |||||||||||||||
Short term borrowings | 298,816 | 407,841 | 293,562 | 401,459 | 191,469 | |||||||||||||||
Long term debt | 35,878 | 37,641 | 36,680 | 36,295 | 36,582 | |||||||||||||||
Other liabilities | 73,191 | 80,410 | 52,749 | 55,020 | 42,243 | |||||||||||||||
Total liabilities | 5,576,710 | 5,528,112 | 4,875,155 | 4,626,732 | 4,005,326 | |||||||||||||||
Stockholder’s equity | 526,889 | 516,876 | 510,519 | 495,991 | 489,453 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,103,599 | 6,044,988 | 5,385,674 | 5,122,723 | 4,494,779 | ||||||||||||||
6
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
March 31, 2005 | March 31, 2004 | |||||||||||||||||||||||
(in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,085,473 | 25,509 | 4.89 | % | $ | 1,326,061 | 15,941 | 4.81 | % | ||||||||||||||
Commercial real estate | 1,759,747 | 28,323 | 6.44 | 1,689,962 | 23,694 | 5.61 | ||||||||||||||||||
Consumer | 487,746 | 6,776 | 5.56 | 374,222 | 3,900 | 4.17 | ||||||||||||||||||
Lease financing | 6,242 | 151 | 9.68 | �� | 13,642 | 382 | 11.20 | |||||||||||||||||
Commercial business | 94,283 | 1,640 | 6.96 | 98,959 | 1,500 | 6.06 | ||||||||||||||||||
Small business | 195,733 | 3,491 | 7.13 | 173,891 | 3,085 | 7.10 | ||||||||||||||||||
Total loans | 4,629,224 | 65,890 | 5.69 | 3,676,737 | 48,502 | 5.28 | ||||||||||||||||||
Investments — tax exempt | 334,029 | 4,829 | (1) | 5.78 | 3,362 | 51 | (1) | 6.04 | ||||||||||||||||
Investments — taxable | 732,939 | 9,555 | 5.21 | 540,460 | 7,808 | 5.78 | ||||||||||||||||||
Total interest earning assets | 5,696,192 | 80,274 | 5.64 | % | 4,220,559 | 56,361 | 5.34 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 80,375 | 82,263 | ||||||||||||||||||||||
Other non-interest earning assets | 283,019 | 240,068 | ||||||||||||||||||||||
Total Assets | $ | 6,059,586 | $ | 4,542,890 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 281,512 | 189 | 0.27 | % | $ | 220,005 | 144 | 0.26 | % | ||||||||||||||
NOW | 664,313 | 602 | 0.37 | 543,619 | 491 | 0.36 | ||||||||||||||||||
Money market | 921,382 | 2,704 | 1.19 | 866,767 | 1,876 | 0.87 | ||||||||||||||||||
Certificate of deposit | 777,353 | 4,800 | 2.50 | 769,949 | 4,462 | 2.33 | ||||||||||||||||||
Total interest bearing deposits | 2,644,560 | 8,295 | 1.27 | 2,400,340 | 6,973 | 1.17 | ||||||||||||||||||
Short-term borrowed funds | 357,047 | 2,122 | 2.41 | 150,735 | 302 | 0.81 | ||||||||||||||||||
Advances from FHLB | 1,536,434 | 13,674 | 3.61 | 760,973 | 9,098 | 4.81 | ||||||||||||||||||
Long-term debt | 37,206 | 600 | 6.54 | 35,842 | 482 | 5.41 | ||||||||||||||||||
Total interest bearing liabilities | 4,575,247 | 24,691 | 2.19 | 3,347,890 | 16,855 | 2.02 | ||||||||||||||||||
Demand deposits | 913,717 | 664,796 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 44,216 | 34,025 | ||||||||||||||||||||||
Total Liabilities | 5,533,180 | 4,046,711 | ||||||||||||||||||||||
Stockholder’s equity | 526,406 | 496,179 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,059,586 | $ | 4,542,890 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | $ | 55,583 | 3.45 | % | $ | 39,506 | 3.32 | % | ||||||||||||||||
Tax equivalent adjustment | (1,690 | ) | (18 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | 452 | 307 | ||||||||||||||||||||||
Net interest income | 54,345 | 39,795 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 5.64 | % | 5.34 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 1.76 | 1.61 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.88 | % | 3.73 | % | ||||||||||||||||||||
(1) The tax equivalent basis is computed using a 35% tax rate.
7
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
(in thousands) | For the Three Months Ended | |||||||||||||||||||
3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
Beginning balance | $ | 46,010 | 48,778 | 46,737 | 45,383 | 45,595 | ||||||||||||||
Charge-offs: | ||||||||||||||||||||
Residential real estate | (198 | ) | (76 | ) | (151 | ) | (124 | ) | (231 | ) | ||||||||||
Commercial real estate | — | (645 | ) | — | — | — | ||||||||||||||
Commercial business | (286 | ) | (762 | ) | (429 | ) | (80 | ) | (344 | ) | ||||||||||
Consumer | (106 | ) | (71 | ) | (174 | ) | (285 | ) | (248 | ) | ||||||||||
Small business | (128 | ) | (233 | ) | (144 | ) | (35 | ) | (44 | ) | ||||||||||
Other | — | — | — | — | — | |||||||||||||||
Total charge-offs | (718 | ) | (1,787 | ) | (898 | ) | (524 | ) | (867 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Residential real estate | 1 | 190 | 53 | 217 | 26 | |||||||||||||||
Commercial real estate | — | 2,000 | 1 | 2,050 | 1 | |||||||||||||||
Commercial business | 116 | 259 | 454 | 828 | 559 | |||||||||||||||
Consumer | 176 | 266 | 167 | 240 | 338 | |||||||||||||||
Small business | 185 | 231 | 378 | 429 | 392 | |||||||||||||||
Other | 1,188 | 77 | 169 | 77 | 198 | |||||||||||||||
Total recoveries | 1,666 | 3,023 | 1,222 | 3,841 | 1,514 | |||||||||||||||
Net recoveries | 948 | 1,236 | 324 | 3,317 | 647 | |||||||||||||||
Provision (recovery) for loan losses | (3,916 | ) | (4,004 | ) | 1,717 | (1,963 | ) | (859 | ) | |||||||||||
Ending balance | $ | 43,042 | 46,010 | 48,778 | 46,737 | 45,383 | ||||||||||||||
Annualized net (recoveries) to average loans | % | (0.08 | ) | (0.11 | ) | (0.03 | ) | (0.35 | ) | (0.07 | ) | |||||||||
As of | ||||||||||||||||||||
3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 6,504 | 7,903 | 11,352 | 12,711 | 11,724 | ||||||||||||||
Nonaccrual tax certificates | 417 | 381 | 448 | 586 | 565 | |||||||||||||||
Real estate owned | 1,438 | 692 | 1,059 | 1,321 | 1,667 | |||||||||||||||
Other repossessed assets | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Total nonperforming assets | $ | 8,359 | 8,976 | 12,859 | 14,618 | 13,956 | ||||||||||||||
Nonperforming assets to total loans and other assets | % | 0.17 | 0.19 | 0.30 | 0.36 | 0.37 | ||||||||||||||
Allowance for loan losses to total loans | % | 0.92 | 1.00 | 1.17 | 1.20 | 1.24 |
8
Ryan Beck & Co., Inc. Business Segment
Consolidated Statements of Operations and Statistics — Unaudited
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | |||||||||||||||
Revenues | ||||||||||||||||||||
Principal transactions | $ | 19,802 | 24,925 | 19,393 | 21,654 | 24,443 | ||||||||||||||
Investment banking | 11,882 | 3,753 | 13,835 | 18,026 | 12,631 | |||||||||||||||
Commissions | 20,315 | 23,109 | 18,564 | 22,245 | 25,371 | |||||||||||||||
Interest, dividends and other | 5,634 | 4,114 | 3,727 | 3,949 | 3,416 | |||||||||||||||
Total operating revenues | 57,633 | 55,901 | 55,519 | 65,874 | 65,861 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Compensation, benefits | 38,437 | 39,439 | 35,090 | 40,297 | 44,042 | |||||||||||||||
Professional fees | 1,417 | 2,044 | 1,063 | 1,330 | 1,045 | |||||||||||||||
Communications | 3,205 | 3,301 | 3,182 | 2,916 | 3,128 | |||||||||||||||
Occupancy and equipment | 4,118 | 5,095 | 3,680 | 3,426 | 3,228 | |||||||||||||||
Floor broker and clearing fees | 2,368 | 2,452 | 2,143 | 2,438 | 2,802 | |||||||||||||||
Interest and other | 3,522 | 2,318 | 3,179 | 3,292 | 3,054 | |||||||||||||||
Total operating expenses | 53,067 | 54,649 | 48,337 | 53,699 | 57,299 | |||||||||||||||
Income from Ryan Beck business segment - before income taxes | 4,566 | 1,252 | 7,182 | 12,175 | 8,562 | |||||||||||||||
Provision for income taxes | 2,036 | 11 | 3,082 | 5,161 | 3,434 | |||||||||||||||
Net income from Ryan Beck business segment | $ | 2,530 | 1,241 | 4,100 | 7,014 | 5,128 | ||||||||||||||
Statistics: | ||||||||||||||||||||
Average tangible assets | $ | 171,833 | 178,967 | 182,226 | 166,954 | 160,085 | ||||||||||||||
Average tangible equity | 85,248 | 83,242 | 81,693 | 76,465 | 72,484 | |||||||||||||||
GAAP return on average tangible assets | % | 5.89 | 2.77 | 9.00 | 16.80 | 12.81 | ||||||||||||||
GAAP return on average tangible equity | 11.87 | 5.96 | 20.08 | 36.69 | 28.30 | |||||||||||||||
Compensation as a percent of revenues | 66.69 | 70.55 | 63.20 | 61.17 | 66.87 | |||||||||||||||
Commissions to total revenues | 35.25 | 41.34 | 33.44 | 33.77 | 38.52 | |||||||||||||||
Principal transactions to total revenues | 34.36 | 44.59 | 34.93 | 32.87 | 37.11 | |||||||||||||||
Investment banking revenue to total revenues | 20.62 | 6.71 | 24.92 | 27.36 | 19.18 |
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 6,312 | 3,674 | 4,225 | 4,000 | 4,888 | ||||||||||||||
Securities | 142,294 | 125,443 | 111,944 | 120,953 | 122,114 | |||||||||||||||
Notes receivable — GMS | 4,386 | 6,096 | 6,438 | 8,551 | 10,261 | |||||||||||||||
Property and equipment, net | 7,020 | 7,472 | 7,748 | 6,762 | 4,749 | |||||||||||||||
Goodwill | 6,184 | 6,184 | 6,184 | 6,184 | 6,184 | |||||||||||||||
Due from clearing agent | 1,120 | 16,619 | 14,478 | 16,048 | — | |||||||||||||||
Other assets | 29,426 | 28,129 | 24,441 | 25,809 | 28,051 | |||||||||||||||
Total assets | $ | 196,742 | 193,617 | 175,458 | 188,307 | 176,247 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Securities sold not yet purchased | $ | 60,276 | 39,462 | 31,760 | 51,321 | 34,250 | ||||||||||||||
Note payable | — | — | — | — | 427 | |||||||||||||||
Due to clearing agent | — | — | — | — | 18,328 | |||||||||||||||
Other liabilities | 44,246 | 63,974 | 54,757 | 52,145 | 45,559 | |||||||||||||||
Total liabilities | 104,522 | 103,436 | 86,517 | 103,466 | 98,564 | |||||||||||||||
Stockholder’s equity | 92,220 | 90,181 | 88,941 | 84,841 | 77,683 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 196,742 | 193,617 | 175,458 | 188,307 | 176,247 | ||||||||||||||
9
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | |||||||||||||||
Net interest (expense) | $ | (3,892 | ) | (3,593 | ) | (3,683 | ) | (3,583 | ) | (3,592 | ) | |||||||||
Income from unconsolidated subsidiaries | 131 | 126 | 123 | 118 | 118 | |||||||||||||||
Gains on sales of securities | 95 | 3,613 | 2 | 3 | 75 | |||||||||||||||
Litigation settlement | — | — | — | — | 22,840 | |||||||||||||||
Employee compensation and benefits | (960 | ) | (778 | ) | (774 | ) | (743 | ) | (747 | ) | ||||||||||
Cost associated with debt redemption | — | — | — | — | — | |||||||||||||||
Other income (expense) | (779 | ) | (536 | ) | (160 | ) | (755 | ) | (637 | ) | ||||||||||
Income (loss) from parent company activities before income taxes | (5,405 | ) | (1,168 | ) | (4,492 | ) | (4,960 | ) | 18,057 | |||||||||||
Provision (Benefit) for income taxes | (1,892 | ) | (409 | ) | (1,483 | ) | (1,797 | ) | 6,381 | |||||||||||
Net income (loss) from parent company business segment | $ | (3,513 | ) | (759 | ) | (3,009 | ) | (3,163 | ) | 11,676 | ||||||||||
Reconciliation of Operating and business segment income | ||||||||||||||||||||
Business segment net income | $ | (3,513 | ) | (759 | ) | (3,009 | ) | (3,163 | ) | 11,676 | ||||||||||
Litigation settlement | — | — | — | — | (14,785 | ) | ||||||||||||||
Operating loss | $ | (3,513 | ) | (759 | ) | (3,009 | ) | (3,163 | ) | (3,109 | ) | |||||||||
Condensed Statements of Financial Condition — Unaudited
As of | |||||||||||||||||||||||
(in thousands) | 3/31/2005 | 12/31/2004 | 9/30/2004 | 6/30/2004 | 3/31/2004 | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash | $ | 8,032 | 9,131 | 10,643 | 10,850 | 48,841 | |||||||||||||||||
Securities | 85,711 | 64,656 | 62,324 | 61,812 | 21,826 | ||||||||||||||||||
Notes receivable from related parties | 16,000 | 38,000 | 38,000 | 38,000 | 42,125 | ||||||||||||||||||
Investment in subsidiaries | 619,111 | 607,061 | 599,462 | 580,834 | 567,139 | ||||||||||||||||||
Investment in unconsolidated subsidiaries | 7,910 | 7,910 | 7,912 | 7,910 | 7,910 | ||||||||||||||||||
Other assets | 15,452 | 8,918 | 7,937 | 7,154 | 7,821 | ||||||||||||||||||
Total assets | $ | 752,216 | 735,676 | 726,278 | 706,560 | 695,662 | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
Subordinated debentures and notes payable | $ | 263,266 | 263,366 | 263,366 | 263,366 | 263,366 | |||||||||||||||||
Other liabilities | 7,969 | 3,045 | 3,423 | 2,860 | 2,719 | ||||||||||||||||||
Total liabilities | 271,235 | 266,411 | 266,789 | 266,226 | 266,085 | ||||||||||||||||||
Stockholders’ equity | 480,981 | 469,265 | 459,489 | 440,334 | 429,577 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 752,216 | 735,676 | 726,278 | 706,560 | 695,662 | |||||||||||||||||
10