Exhibit 99.1
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BankAtlantic Bancorp Reports Financial Results for First Quarter 2006
Confirms Resolution of Compliance Matter
FORT LAUDERDALE, Florida — April 26, 2006 — BankAtlantic Bancorp, Inc. (NYSE: BBX) (“Company”) today announced financial results for the quarter ended March 31, 2006. Net income was $6.7 million, or $0.11 per diluted share, compared to $19.9 million, or $0.31 per diluted share, reported in the first quarter 2005.
Alan B. Levan, Chairman and Chief Executive Officer of BankAtlantic Bancorp commented, “The quarter’s financial results reflect our earlier decision to forego near-term results due to the previously announced costs of our expanded marketing program, our new store expansion program, and the added costs of our expanded hours ‘convenience model.’ We earlier announced our decision to increase our marketing expenditures by approximately $5 million each quarter and to move forward with a new store program with a goal of building sustainable high levels of low cost deposits (demand, savings, and NOW accounts). We knew that these incremental costs would cause earnings for several quarters to be below those of prior periods and our long term objectives, but we expect these moves, in turn, to translate into superior long term profitability. Based on the first quarter’s results, we believe our strategy is working. BankAtlantic’s growth in new low-cost deposits continued to be among the highest rates in the industry, even in the face of general national declines in these deposits. Additionally, earning asset levels remained steady, consistent with our current posture in response to interest rates. We are extremely pleased that asset quality remained very high and that our bank’s other growth initiatives are moving forward as anticipated.
“BankAtlantic Bancorp and Ryan Beck & Co. recently announced that we are pursuing a financial transaction relating to our investment in Ryan Beck with a view toward monetizing a portion of BankAtlantic Bancorp’s investment in that company. BankAtlantic Bancorp expects to retain a substantial interest in Ryan Beck subsequent to any financial transaction.
“For several quarters, we have disclosed regulatory issues relating to deficiencies in our compliance with the Bank Secrecy Act and anti-money laundering laws and regulations, and in
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the fourth quarter, 2005, made a $10 million provision for anticipated fines and penalties. Earlier today, we announced that we had entered into a deferred prosecution agreement with the Department of Justice relating to this matter and had agreed to the payment of a $10 million fine. At the same time we entered into a cease and desist order with the Office of Thrift Supervision and a consent with FinCEN. BankAtlantic has been advised that the orders and consents with the OTS and FinCEN will have no effect on BankAtlantic’s ongoing operations and growth, including branching and acquisitions, provided that BankAtlantic remains in full compliance with the terms of the orders and consents. Since these issues were identified in 2004, we have worked tirelessly to ensure we are in full compliance with all applicable laws and regulations, and have made significant investments in personnel and compliance systems. We are happy to put these issues behind us.
Commentary on Business Segment Operations:
BankAtlantic:
“BankAtlantic’s landmark ‘Florida’s Most Convenient Bank’ initiative continues to produce impressive growth in new customers. In the quarter, we opened a record 77,000 new low cost deposit accounts, an increase of 37% over the corresponding 2005 quarter. The ‘net new’ low cost deposit balances (net balance growth in both new and ‘legacy’ accounts) increased 79% to a record $205 million vs. $115 million in the comparable 2005 period. This is particularly significant since we achieved the highest level of low cost deposit growth in 2005 during that quarter. At quarter-end, ‘total bank’ and ‘same store’ low cost deposit balances increased 18.7% and 16.6%, respectively, from the first quarter 2005, to a record $2.3 billion in total low cost deposits. The quarter’s growth brought demand deposits to a record 29% of total deposits, and aggregate low cost deposit balances to a record 58% of total deposits. Additionally, we are pleased with the early successes of our new store program. In the past 15 months, we have opened six new stores, and are very pleased with the initial success of each in meeting its goals for growth in low cost deposits, fee income, and overall financial contribution.
“Earnings for BankAtlantic for the quarter were $10.4 million, down from $20.9 million in the first quarter of 2005. Net interest income of $55.1 million was $0.8 million greater than the first quarter of 2005, in spite of declines in earning assets, reflecting our strategy of utilizing the growth of lower cost deposits to reduce borrowings instead of investing in earning assets.
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The ratio of borrowings to deposits and borrowings at quarter end had improved to 26%, down from 35% in the first quarter of 2005. Our longer term expectation is for this ratio to trend toward a range of 10-15%.
“Non-interest income of $27.0 million was 15% greater than the first quarter of 2005. Excluding income/(loss) from real estate operations discussed below, non-interest income was 32% greater than the first quarter of 2005, driven by growth in service charges directly related to deposit growth. Non-interest expense of $67.4 million was $17.1 million, or 34%, greater than the corresponding quarter of 2005. The growth in expenses from the prior year was largely the result of an $8.0 million (30%) increase in personnel costs and a $3.3 million (36%) increase in occupancy and equipment expense, again reflecting our continued growth and store expansion strategy. Advertising expense increased $3.1 million from the prior year, due to our aggressive program to attract low cost deposits.
“The tax equivalent net interest margin increased to 4.11%, adjusted for the effect of loan sales (which are recorded as secured borrowings under generally accepted accounting principles), from 4.05% in the last quarter of 2005 and 3.88% in the corresponding quarter of 2005. The continued margin improvement is particularly significant in light of the flatness of the current yield curve. While further margin improvement will depend largely on the future pattern of interest rates, we believe our high level of low cost deposits and the expected continued growth in those deposits, coupled with the general positioning of our balance sheet for rising interest rates should result in a gradual further improvement in BankAtlantic’s margin.
“Credit quality remained strong, with the ratio of non-performing loans to total loans at 0.14% at March 31, 2006. During the quarter, BankAtlantic recorded net recoveries of $534,000, continuing the pattern of the past several quarters. Provision expense was $163,000 compared to a negative provision of $109,000 in the quarter ended December 31, 2005 and a negative provision of $3.9 million in the corresponding quarter of 2005. The ratio of the allowance for loan losses to non-performing loans remained solid, closing the quarter at 687% compared to 606% at December 31, 2005, and 662% at March 31, 2005.
“Loans and total earning assets declined slightly as continued run-off of our high rise condominium loan portfolio acted to offset growth in other areas, and as we followed our strategy of limited investment in residential loans due to the current flat yield curve. Average total loans were $4.6 billion vs. $4.8 billion in the comparable 2005 period. Average consumer
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loans increased 10.7% to $540 million and average small business loans increased 23.2% to $241 million, vs. the comparable 2005 period.
“During the current quarter, we experienced a loss of $1.1 million from operations of a real estate joint venture acquired in 2002 as part of the acquisition of another bank. The loss resulted from higher development and capitalized interest costs associated with units sold during the period. The higher development costs primarily resulted from an increase in the cost of building materials and a combination of higher labor costs and labor shortages resulting from the active real estate market, exacerbated by damage throughout the area from hurricanes over the past two years. It is possible that we may experience additional losses at this development, depending on the rate of future sales and development costs.
Ryan Beck & Co.:
“For the first quarter 2006, Ryan Beck & Co. recorded a first quarter loss of $1.6 million compared to a profit of $2.5 million in the first quarter of 2005. The loss was due to weak revenue growth, as well as the compensation costs and other direct expenses associated with the recent expansion of several of its units, principally the capital markets division, in late 2005. Client assets grew to nearly $19 billion, an increase of nearly 10.5% at March 31, 2006 from March 31, 2005. In addition, investment advisory assets grew 7.2% to nearly $1.4 billion over the past year.
“Gross revenue was $58.8 million vs. $57.6 million for the corresponding quarter of 2005, a 2% increase. Expense growth of 17% was primarily attributable to compensation expense associated with expansion in the capital markets and investment banking groups. In all cases, revenues associated with new hires lagged the increased compensation expense. Compensation and benefits, principally related to this growth, were up $5.9 million, and accounted for two thirds of the 17% increase in operating expenses. In addition, information processing costs and business development costs increased 23% and 46% respectively in the quarter-over-quarter comparison. These increases are also primarily driven by the increased headcount.
BankAtlantic Bancorp:
“During the quarter, BankAtlantic Bancorp sold a portion of its portfolio of equity securities for a $2.5 million gain. These sales were made to partially fund the interest expense
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on our junior subordinated debentures, and we presently anticipate continuing this strategy in subsequent periods,” Levan concluded.
Financial Highlights:
First Quarter, 2006 Compared to First Quarter, 2005
BankAtlantic Bancorp — consolidated:
• | Net income of $6.7 million vs. $19.9 million, a decrease of 66%. | ||
• | Earnings per share of $0.11 vs. $0.31, a decrease of 65%. | ||
• | Return on average tangible equity was 6.06%. | ||
• | Book value per share was $8.49. |
BankAtlantic:
• | Business segment income was $10.4 million vs. $20.9 million, a decrease of 50%. | ||
• | Return on average tangible assets was 0.70%. | ||
• | Return on average tangible equity was 8.61%. | ||
• | Tax equivalent net interest margin increased to 4.02% vs. 3.76% (4.11% vs. 3.88% excluding $2.4 million of interest income/expense and $2.2 million of interest income/expense, respectively, relating to loan participations recorded as secured borrowings). | ||
• | Non-interest income was $27.0 million vs. $23.5 million, an increase of 15%. | ||
• | Non-interest expense grew to $67.4 million vs. $50.3 million, an increase of 34%. |
Ryan Beck & Co.:
• | Business segment loss was $1.6 million vs. a profit in the prior quarter of $2.5 million. | ||
• | Loss on average tangible equity was (6.31%). | ||
• | Total operating revenues were $58.8 million vs. $57.6 million. | ||
• | Principal transactions were $24.7 million vs. $19.8 million. | ||
• | Investment banking revenue was $3.7 million vs. $11.9 million. | ||
• | Commission income was $22.9 million vs. $20.3 million. |
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BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Thursday, April 27, 2006, 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 is 1-800- 968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number 7633833.
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 26, 2006. To access the replay option in the U.S. and Canada, the toll free number to call is 1-800-642-1687. International calls for the replay may be placed at 706-645-9291. The replay digital PIN number for both domestic and international calls is 7633833.
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 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 26, 2006.
BankAtlantic Bancorp’s first quarter, 2006 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), will be 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 first quarter, 2006 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.
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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 and its online banking division - BankAtlantic.com. BankAtlantic has 79 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 43 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 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 Group, 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
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.
www.BankAtlanticBancorp.com.
BankAtlantic Bancorp Contact Info:
Leo Hinkley,
Senior Vice President, Investor Relations
Email: InvestorRelations@BankAtlanticBancorp.com
Senior Vice President, Investor Relations
Email: InvestorRelations@BankAtlanticBancorp.com
Donna Rouzeau,
Assistant Vice President, Investor Relations & Corporate Communications
Email: CorpComm@BankAtlanticBancorp.com
Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
Assistant Vice President, Investor Relations & Corporate Communications
Email: CorpComm@BankAtlanticBancorp.com
Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
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BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Public Relations:
Hattie Hess, Vice President, Public Relations
Telephone: (954) 940-6383, Fax: (954) 940-6310
Email: hhess@BankAtlantic.com
Public Relations for BankAtlantic:
Boardroom Communications
Caren Berg
Phone: (954) 370-8999, Fax: (954) 370-8892
Email: caren@boardroompr.com
Hattie Hess, Vice President, Public Relations
Telephone: (954) 940-6383, Fax: (954) 940-6310
Email: hhess@BankAtlantic.com
Public Relations for BankAtlantic:
Boardroom Communications
Caren Berg
Phone: (954) 370-8999, Fax: (954) 370-8892
Email: caren@boardroompr.com
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Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. When used in this press release 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 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, including the impact on the credit quality of our loans of changes in the commercial real estate market in our trade area; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on the 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 initiatives and other growth, marketing or advertising initiatives not resulting in continued growth of low cost deposits or producing results which justify their costs; the impact of periodic testing of goodwill and other intangible assets for impairment; and future compliance deficiencies occurring despite the regulatory compliance systems and procedures put in place. The results or performance derived or implied, directly or indirectly from the estimates and assumptions, are based on our beliefs and may not be accurate. Past performance, actual or estimated new account openings and growth rate may not be indicative of future results. 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 growth; and additional risks and uncertainties that are subject to change and may be outside of Ryan Beck’s control. Moreover, this press release also contains forward-looking statements with respect to the pursuit of a financial transaction regarding the Company’s investment in Ryan Beck, which are subject to a number of risks and uncertainties including but not limited to the fact that a financial transaction may not be consummated or may be consummated on terms different than those currently contemplated. 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)
Summary of Selected Financial Data (unaudited)
For The Three Months Ended | ||||||||||||||||||||||||
3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | ||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||
Net income (loss) (GAAP basis) | $ | 6,712 | (1,493 | ) | 16,260 | 24,537 | 19,878 | |||||||||||||||||
Operating net income ** | (note 1) | $ | 6,704 | 8,507 | 16,260 | 26,946 | 19,878 | |||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||
Basic | 61,005 | 60,618 | 60,555 | 60,453 | 60,072 | |||||||||||||||||||
Diluted | 62,761 | 62,898 | 63,193 | 63,161 | 63,207 | |||||||||||||||||||
Key Performance Ratios (GAAP basis): | ||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.11 | (0.03 | ) | 0.27 | 0.41 | 0.33 | |||||||||||||||||
Diluted earnings (loss) per share * | $ | 0.11 | (0.03 | ) | 0.26 | 0.38 | 0.31 | |||||||||||||||||
Return on average tangible assets | (note 2) | % | 0.43 | (0.09 | ) | 0.98 | 1.48 | 1.24 | ||||||||||||||||
Return on average tangible equity | (note 2) | % | 6.06 | (1.32 | ) | 15.05 | 23.98 | 20.20 | ||||||||||||||||
Key Performance Ratios (Operating basis): | ||||||||||||||||||||||||
Basic earnings per share | $ | 0.11 | 0.14 | 0.27 | 0.45 | 0.33 | ||||||||||||||||||
Diluted earnings per share * | $ | 0.11 | 0.13 | 0.26 | 0.42 | 0.31 | ||||||||||||||||||
Return on average tangible assets | (note 2) | % | 0.43 | 0.53 | 0.98 | 1.62 | 1.24 | |||||||||||||||||
Return on average tangible equity | (note 2) | % | 6.05 | 7.52 | 15.05 | 26.33 | 20.20 | |||||||||||||||||
* Diluted earnings per share calculation deducts (in thousands): | ||||||||||||||||||||||||
subsidiaries stock options, if dilutive | $ | — | (28 | ) | (21 | ) | (665 | ) | (120 | ) | ||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||
Assets | $ | 6,388 | 6,463 | 6,692 | 6,729 | 6,525 | ||||||||||||||||||
Tangible assets | (note 2) | $ | 6,304 | 6,378 | 6,607 | 6,643 | 6,438 | |||||||||||||||||
Loans excluding certain loan participations sold | (note 3) | $ | 4,488 | 4,550 | 4,726 | 4,802 | 4,668 | |||||||||||||||||
Loan participations sold | (note 3) | $ | 125 | 134 | 148 | 165 | 170 | |||||||||||||||||
Investments | $ | 1,259 | 1,263 | 1,322 | 1,306 | 1,242 | ||||||||||||||||||
Deposits and escrows | $ | 3,831 | 3,704 | 3,655 | 3,658 | 3,557 | ||||||||||||||||||
Stockholders’ equity | $ | 522 | 533 | 516 | 490 | 480 | ||||||||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 443 | 453 | 432 | 409 | 394 |
Notes: | ||
(1) | Operating net income is defined as GAAP net income adjusted for gains and costs associated with debt redemptions, an impairment charge relating to BankAtlantic’s headquarter facility and a reserve for a compliance matter. | |
(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. | |
(3) | Loan participations sold accounted for as secured borrowings. | |
** | 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)
Consolidated Statements of Financial Condition (unaudited)
(in thousands, except share data) | 3/31/2006 | 12/31/2005 | 3/31/2005 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 161,005 | 167,032 | 119,915 | ||||||||
Short term investments | 18,463 | 3,229 | 16,832 | |||||||||
Securities available for sale (at fair value) | 670,683 | 674,544 | 762,573 | |||||||||
Securities owned (at fair value) | 169,570 | 180,292 | 142,294 | |||||||||
Investment securities and tax certificates (approximate fair value: $340,114, $364,122 and $298,950) | 342,251 | 364,444 | 302,498 | |||||||||
Loans receivable, net of allowance for loan losses of $41,889, $41,192 and $43,042 | 4,524,743 | 4,624,772 | 4,801,412 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 60,800 | 69,931 | 80,600 | |||||||||
Accrued interest receivable | 42,251 | 41,490 | 38,864 | |||||||||
Real estate held for development and sale | 22,347 | 21,177 | 24,799 | |||||||||
Investments and advances to unconsolidated subsidiaries | 11,996 | 12,464 | 7,910 | |||||||||
Office properties and equipment, net | 170,686 | 154,120 | 132,438 | |||||||||
Deferred tax asset, net | 31,376 | 29,615 | 22,971 | |||||||||
Goodwill | 76,674 | 76,674 | 76,674 | |||||||||
Core deposit intangible asset | 7,995 | 8,395 | 9,597 | |||||||||
Due from clearing agent | 2,672 | — | 1,120 | |||||||||
Other assets | 44,090 | 43,232 | 42,034 | |||||||||
Total assets | $ | 6,357,602 | 6,471,411 | 6,582,531 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits | ||||||||||||
Demand | $ | 1,152,361 | 1,019,949 | 960,063 | ||||||||
NOW | 790,225 | 755,708 | 676,945 | |||||||||
Savings | 351,839 | 313,889 | 296,485 | |||||||||
Money market | 806,871 | 846,441 | 913,434 | |||||||||
Certificates of deposit | 859,470 | 816,689 | 796,928 | |||||||||
Total deposits | 3,960,766 | 3,752,676 | 3,643,855 | |||||||||
Advances from FHLB | 1,085,914 | 1,283,532 | 1,524,881 | |||||||||
Securities sold under agreements to repurchase | 94,434 | 116,026 | 217,463 | |||||||||
Federal funds purchased | 81,197 | 139,475 | 75,000 | |||||||||
Secured borrowings | 111,754 | 138,270 | 164,180 | |||||||||
Subordinated debentures, notes and bonds payable | 41,832 | 39,092 | 35,878 | |||||||||
Junior subordinated debentures | 263,266 | 263,266 | 263,266 | |||||||||
Securities sold but not yet purchased | 41,828 | 35,177 | 60,276 | |||||||||
Due to clearing agent | 32,206 | 24,486 | — | |||||||||
Other liabilities | 122,635 | 163,075 | 116,751 | |||||||||
Total liabilities | 5,835,832 | 5,955,075 | 6,101,550 | |||||||||
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 56,547,885, 55,884,089 and 55,665,968 shares | 565 | 559 | 556 | |||||||||
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 | 263,476 | 261,720 | 260,207 | |||||||||
Unearned compensation — restricted stock grants | (851 | ) | (936 | ) | (957 | ) | ||||||
Retained earnings | 265,657 | 261,279 | 228,714 | |||||||||
Total stockholders’ equity before accumulated other comprehensive income | 528,896 | 522,671 | 488,569 | |||||||||
Accumulated other comprehensive (loss) | (7,126 | ) | (6,335 | ) | (7,588 | ) | ||||||
Total stockholders’ equity | 521,770 | 516,336 | 480,981 | |||||||||
Total liabilities and stockholders’ equity | $ | 6,357,602 | 6,471,411 | 6,582,531 | ||||||||
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BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For The Three Months Ended | ||||||||||||||||||||||||
(in thousands) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||
Interest and fees on loans | $ | 75,386 | 75,404 | 75,747 | 73,582 | 68,517 | ||||||||||||||||||
Interest on securities available for sale | 4,305 | 4,379 | 4,741 | 5,258 | 5,295 | |||||||||||||||||||
Interest on tax exempt securities | 3,806 | 3,695 | 3,733 | 3,769 | 3,225 | |||||||||||||||||||
Interest and dividends on investments and securities owned | 8,614 | 9,109 | 8,708 | 7,932 | 7,311 | |||||||||||||||||||
Total interest income | 92,111 | 92,587 | 92,929 | 90,541 | 84,348 | |||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||
Interest on deposits | 12,754 | 11,736 | 10,519 | 9,534 | 8,295 | |||||||||||||||||||
Interest on advances from FHLB | 14,139 | 15,565 | 17,332 | 15,604 | 13,674 | |||||||||||||||||||
Interest on short-term borrowed funds | 2,575 | 2,746 | 2,108 | 2,646 | 2,099 | |||||||||||||||||||
Interest on secured borrowings | 2,401 | 2,862 | 2,637 | 2,483 | 2,162 | |||||||||||||||||||
Interest on long-term debt | 7,584 | 6,825 | 6,392 | 6,316 | 5,672 | |||||||||||||||||||
Capitalized interest on real estate development | (480 | ) | (513 | ) | (477 | ) | (437 | ) | (452 | ) | ||||||||||||||
Total interest expense | 38,973 | 39,221 | 38,511 | 36,146 | 31,450 | |||||||||||||||||||
NET INTEREST INCOME | 53,138 | 53,366 | 54,418 | 54,395 | 52,898 | |||||||||||||||||||
Provision (recovery from) loan losses | 163 | (109 | ) | (3,410 | ) | 820 | (3,916 | ) | ||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 52,975 | 53,475 | 57,828 | 53,575 | 56,814 | |||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||
Service charges on deposits | 19,099 | 17,808 | 16,415 | 14,744 | 12,989 | |||||||||||||||||||
Other service charges and fees | 6,222 | 6,436 | 5,824 | 5,849 | 5,238 | |||||||||||||||||||
Broker/dealer revenue | 54,562 | 49,831 | 50,368 | 83,915 | 54,686 | |||||||||||||||||||
Securities activities, net | 2,541 | 474 | 181 | 90 | 102 | |||||||||||||||||||
Gain on sales of loans | 94 | 221 | 295 | 116 | 110 | |||||||||||||||||||
Gain associated with debt redemption | 436 | — | — | — | — | |||||||||||||||||||
Income (loss) from real estate operations | (1,096 | ) | (558 | ) | 1,142 | 1,655 | 2,241 | |||||||||||||||||
Income from unconsolidated subsidiaries | 820 | 211 | 142 | 137 | 131 | |||||||||||||||||||
Other | 2,244 | 2,299 | 2,137 | 2,697 | 3,173 | |||||||||||||||||||
Total non-interest income | 84,922 | 76,722 | 76,504 | 109,203 | 78,670 | |||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||
Employee compensation and benefits | 80,200 | 70,257 | 68,455 | 78,391 | 65,795 | |||||||||||||||||||
Occupancy and equipment | 16,247 | 15,394 | 14,853 | 13,953 | 13,237 | |||||||||||||||||||
Impairment of office properties and equipment | — | — | — | 3,706 | — | |||||||||||||||||||
Advertising and promotion | 9,957 | 11,701 | 6,667 | 8,069 | 6,298 | |||||||||||||||||||
Professional fees | 4,250 | 4,692 | 4,207 | 4,316 | 4,081 | |||||||||||||||||||
Communications | 3,954 | 3,470 | 3,371 | 3,508 | 3,205 | |||||||||||||||||||
Floor broker and clearing fees | 2,719 | 2,433 | 2,305 | 2,012 | 2,368 | |||||||||||||||||||
Costs associated with debt redemption | 423 | — | — | — | — | |||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | 10,000 | — | — | — | |||||||||||||||||||
Other | 11,918 | 12,052 | 11,326 | 10,188 | 9,801 | |||||||||||||||||||
Total non-interest expense | 129,668 | 129,999 | 111,184 | 124,143 | 104,785 | |||||||||||||||||||
Income before income taxes | 8,229 | 198 | 23,148 | 38,635 | 30,699 | |||||||||||||||||||
Provision for income taxes | 1,517 | 1,691 | 6,888 | 14,098 | 10,821 | |||||||||||||||||||
GAAP net income (loss) | $ | 6,712 | (1,493 | ) | 16,260 | 24,537 | 19,878 | |||||||||||||||||
Reconciliation of Operating and GAAP Net Income | ||||||||||||||||||||||||
GAAP net income (loss) | $ | 6,712 | (1,493 | ) | 16,260 | 24,537 | 19,878 | |||||||||||||||||
Gain associated with debt redemption | (283 | ) | — | — | — | — | ||||||||||||||||||
Impairment of office properties and equipment | — | — | — | 2,409 | — | |||||||||||||||||||
Costs associated with debt redemption | 275 | — | — | — | — | |||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | 10,000 | — | — | — | |||||||||||||||||||
Operating net income | (note 1) | $ | 6,704 | 8,507 | 16,260 | 26,946 | 19,878 | |||||||||||||||||
11
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
Consolidated Average Balance Sheet (unaudited)
For the three months ended | ||||||||||||||||||||||||
(in thousands except percentages and per share data) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,043,310 | 2,115,899 | 2,245,067 | 2,262,214 | 2,085,473 | ||||||||||||||||||
Commercial real estate excluding certain loan participations sold | (note 3) | 1,561,236 | 1,576,131 | 1,643,570 | 1,731,243 | 1,764,927 | ||||||||||||||||||
Loan participations sold | (note 3) | 125,293 | 134,080 | 147,633 | 164,778 | 169,541 | ||||||||||||||||||
Consumer | 539,937 | 538,321 | 527,190 | 505,338 | 487,746 | |||||||||||||||||||
Lease financing | 467 | 1,433 | 2,768 | 4,710 | 6,242 | |||||||||||||||||||
Commercial business | 102,066 | 91,979 | 90,578 | 91,756 | 128,372 | |||||||||||||||||||
Small business | 241,103 | 226,153 | 216,931 | 206,272 | 195,733 | |||||||||||||||||||
Total Loans | 4,613,412 | 4,683,996 | 4,873,737 | 4,966,311 | 4,838,034 | |||||||||||||||||||
Investments — taxable | 857,866 | 867,625 | 924,911 | 899,134 | 877,003 | |||||||||||||||||||
Investments — tax exempt | 401,541 | 394,935 | 396,908 | 406,403 | 364,824 | |||||||||||||||||||
Total interest earning assets | 5,872,819 | 5,946,556 | 6,195,556 | 6,271,848 | 6,079,861 | |||||||||||||||||||
Goodwill and core deposit intangibles | 84,878 | 85,277 | 85,679 | 86,095 | 86,791 | |||||||||||||||||||
Other non-interest earning assets | 430,746 | 431,215 | 411,116 | 371,549 | 358,024 | |||||||||||||||||||
Total assets | $ | 6,388,443 | 6,463,048 | 6,692,351 | 6,729,492 | 6,524,676 | ||||||||||||||||||
Tangible assets | (note 2) | $ | 6,303,565 | 6,377,771 | 6,606,672 | 6,643,397 | 6,437,885 | |||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand deposits | $ | 1,065,510 | 1,017,467 | 1,000,219 | 981,643 | 912,897 | ||||||||||||||||||
Savings | 331,117 | 309,007 | 303,268 | 301,331 | 281,512 | |||||||||||||||||||
NOW | 760,419 | 692,128 | 666,567 | 685,769 | 664,313 | |||||||||||||||||||
Money market | 829,700 | 887,858 | 904,382 | 906,514 | 921,382 | |||||||||||||||||||
Certificates of deposit | 843,866 | 797,187 | 781,044 | 782,335 | 777,353 | |||||||||||||||||||
Total deposits | 3,830,612 | 3,703,647 | 3,655,480 | 3,657,592 | 3,557,457 | |||||||||||||||||||
Short-term borrowed funds | 239,144 | 276,333 | 251,242 | 359,861 | 352,911 | |||||||||||||||||||
FHLB advances | 1,164,675 | 1,345,033 | 1,659,411 | 1,615,310 | 1,536,434 | |||||||||||||||||||
Secured borrowings | (note 3) | 125,293 | 134,080 | 147,633 | 164,778 | 169,541 | ||||||||||||||||||
Long-term debt | 301,529 | 301,655 | 298,887 | 299,075 | 300,551 | |||||||||||||||||||
Total borrowings | 1,830,641 | 2,057,101 | 2,357,173 | 2,439,024 | 2,359,437 | |||||||||||||||||||
Other liabilities | 204,693 | 169,156 | 163,581 | 142,617 | 128,233 | |||||||||||||||||||
Total liabilities | 5,865,946 | 5,929,904 | 6,176,234 | 6,239,233 | 6,045,127 | |||||||||||||||||||
Stockholders’ equity | 522,497 | 533,144 | 516,117 | 490,259 | 479,549 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,388,443 | 6,463,048 | 6,692,351 | 6,729,492 | 6,524,676 | ||||||||||||||||||
Other comprehensive income (loss) in stockholders’ equity | $ | (5,350 | ) | (4,810 | ) | (1,612 | ) | (5,119 | ) | (949 | ) | |||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 442,969 | 452,677 | 432,050 | 409,283 | 393,707 | |||||||||||||||||
Period End | ||||||||||||||||||||||||
Total loans, net excluding certain loan participations sold | $ | 4,412,989 | 4,486,502 | 4,543,245 | 4,803,529 | 4,637,232 | ||||||||||||||||||
Loan participations sold | (note 3) | 111,754 | 138,270 | 129,891 | 165,375 | 164,180 | ||||||||||||||||||
Total assets | 6,357,602 | 6,471,411 | 6,482,713 | 6,883,051 | 6,582,531 | |||||||||||||||||||
Total stockholders’ equity | 521,770 | 516,336 | 523,392 | 510,394 | 480,981 | |||||||||||||||||||
Common shares outstanding | 61,424,009 | 60,760,213 | 60,738,610 | 60,642,777 | 60,542,092 | |||||||||||||||||||
Cash dividends | 2,334,112 | 2,308,888 | 2,308,067 | 2,122,497 | 2,118,973 | |||||||||||||||||||
Common stock cash dividends per share | 0.038 | 0.038 | 0.038 | 0.035 | 0.035 | |||||||||||||||||||
Closing stock price | 14.39 | 14.00 | 16.99 | 18.95 | 17.40 | |||||||||||||||||||
High stock price for the quarter | 15.23 | 17.19 | 19.33 | 19.15 | 20.00 | |||||||||||||||||||
Low stock price for the quarter | 12.67 | 13.29 | 15.64 | 16.51 | 17.02 | |||||||||||||||||||
Book value per share | 8.49 | 8.50 | 8.62 | 8.42 | 7.94 |
12
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||
Net interest income | $ | 55,138 | 54,760 | 55,939 | 56,031 | 54,345 | ||||||||||||||
Provision (recovery from) loan losses | 163 | (109 | ) | (3,410 | ) | 820 | (3,916 | ) | ||||||||||||
Net Interest income after provision for loan losses | 54,975 | 54,869 | 59,349 | 55,211 | 58,261 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposits | 19,099 | 17,808 | 16,415 | 14,744 | 12,989 | |||||||||||||||
Other service charges and fees | 6,222 | 6,436 | 5,824 | 5,849 | 5,238 | |||||||||||||||
Securities gains (losses) | (1 | ) | — | 23 | 87 | 7 | ||||||||||||||
Gain on sales of loans | 94 | 221 | 295 | 116 | 110 | |||||||||||||||
Gain associated with debt redemption | 436 | — | — | — | — | |||||||||||||||
Income (loss) from real estate operations | (1,096 | ) | (558 | ) | 1,142 | 1,655 | 2,241 | |||||||||||||
Other non-interest income | 2,254 | 1,928 | 2,019 | 2,514 | 2,956 | |||||||||||||||
Total non-interest income | 27,008 | 25,835 | 25,718 | 24,965 | 23,541 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Employee compensation and benefits | 34,357 | 31,445 | 28,106 | 27,577 | 26,398 | |||||||||||||||
Occupancy and equipment | 12,372 | 11,503 | 10,826 | 10,165 | 9,117 | |||||||||||||||
Impairment of office properties and equipment | — | — | — | 3,706 | — | |||||||||||||||
Advertising | 8,296 | 10,244 | 5,518 | 5,965 | 5,168 | |||||||||||||||
Professional fees | 2,193 | 2,521 | 2,641 | 2,638 | 1,895 | |||||||||||||||
Costs associated with debt redemption | 423 | — | — | — | — | |||||||||||||||
Reserve for fines and penalties, compliance matter | — | 10,000 | — | — | — | |||||||||||||||
Other | 9,742 | 10,076 | 9,631 | 8,265 | 7,686 | |||||||||||||||
Total non-interest expense | 67,383 | 75,789 | 56,722 | 58,316 | 50,264 | |||||||||||||||
Income from bank operations business segment before income taxes | 14,600 | 4,915 | 28,345 | 21,860 | 31,538 | |||||||||||||||
Provision for income taxes | 4,182 | 4,018 | 9,054 | 7,089 | 10,677 | |||||||||||||||
Net income from bank operations business segment | $ | 10,418 | 897 | 19,291 | 14,771 | 20,861 | ||||||||||||||
Reconciliation of Operating and business segment net income | ||||||||||||||||||||
Business segment income | $ | 10,418 | 897 | 19,291 | 14,771 | 20,861 | ||||||||||||||
Gain associated with debt redemption | (283 | ) | — | — | — | — | ||||||||||||||
Impairment of office properties and equipment | — | — | — | 2,409 | — | |||||||||||||||
Costs associated with debt redemption | 275 | — | — | — | — | |||||||||||||||
Reserve for fines and penalties, compliance matter | — | 10,000 | — | — | — | |||||||||||||||
Operating net income | $ | 10,410 | 10,897 | 19,291 | 17,180 | 20,861 | ||||||||||||||
13
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
(in thousands except percentages | For the Three Months Ended | |||||||||||||||||||
and per share data) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||
Statistics: | ||||||||||||||||||||
GAAP tax equivalent: | ||||||||||||||||||||
Average earning assets | $ | 5,591,286 | 5,709,807 | 5,967,885 | 6,046,843 | 5,865,733 | ||||||||||||||
Average interest bearing liabilities | $ | 4,338,215 | 4,485,417 | 4,754,244 | 4,856,422 | 4,744,788 | ||||||||||||||
Average tangible assets | $ | 5,947,154 | 6,053,697 | 6,280,162 | 6,344,861 | 6,148,752 | ||||||||||||||
Average tangible equity | $ | 484,162 | 495,614 | 473,387 | 463,813 | 448,667 | ||||||||||||||
Borrowings to deposits and borrowings | % | 26.31 | 31.45 | 33.24 | 37.95 | 35.71 | ||||||||||||||
Operating (3): | ||||||||||||||||||||
Average earning assets | $ | 5,465,993 | 5,575,727 | 5,820,252 | 5,882,065 | 5,696,192 | ||||||||||||||
Average interest bearing liabilities | $ | 4,212,922 | 4,351,337 | 4,606,611 | 4,691,644 | 4,575,247 | ||||||||||||||
Average tangible assets | $ | 5,821,861 | 5,919,617 | 6,132,529 | 6,180,083 | 5,979,211 | ||||||||||||||
Average tangible equity | $ | 484,162 | 495,614 | 473,387 | 463,813 | 448,667 | ||||||||||||||
GAAP tax equivalent: | ||||||||||||||||||||
Yield on earning assets | % | 6.39 | 6.29 | 6.08 | 5.84 | 5.62 | ||||||||||||||
Cost of interest-bearing liabilities | % | 3.06 | 2.97 | 2.78 | 2.55 | 2.30 | ||||||||||||||
Interest spread | % | 3.33 | 3.32 | 3.30 | 3.29 | 3.32 | ||||||||||||||
Net interest margin | % | 4.02 | 3.96 | 3.87 | 3.79 | 3.76 | ||||||||||||||
Operating tax equivalent (3): | ||||||||||||||||||||
Yield on earning assets | % | 6.36 | 6.24 | 6.05 | 5.84 | 5.64 | ||||||||||||||
Cost of interest-bearing liabilities | % | 2.92 | 2.80 | 2.64 | 2.43 | 2.19 | ||||||||||||||
Interest spread | % | 3.44 | 3.44 | 3.41 | 3.41 | 3.45 | ||||||||||||||
Net interest margin | % | 4.11 | 4.05 | 3.96 | 3.90 | 3.88 | ||||||||||||||
GAAP: | ||||||||||||||||||||
Efficiency ratio | % | 82.03 | 94.04 | 69.46 | 72.00 | 64.54 | ||||||||||||||
Return on average tangible assets | % | 0.70 | 0.06 | 1.23 | 0.93 | 1.36 | ||||||||||||||
Return on average tangible equity | % | 8.61 | 0.72 | 16.30 | 12.74 | 18.60 | ||||||||||||||
Operating (1): | ||||||||||||||||||||
Efficiency ratio | % | 81.95 | 81.63 | 69.46 | 67.42 | 64.54 | ||||||||||||||
Return on average tangible assets | % | 0.72 | 0.74 | 1.26 | 1.11 | 1.40 | ||||||||||||||
Return on average tangible equity | % | 8.60 | 8.79 | 16.30 | 14.82 | 18.60 | ||||||||||||||
Earning assets repricing (2): | ||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 55 | 54 | 50 | ||||||||||||||||
Percent of earning assets that have variable rates | % | 45 | 46 | 50 | ||||||||||||||||
One year Gap | % | 9 | 7 | 4 |
(1) | Ratios have been adjusted to exclude gains and costs associated with debt redemptions, impairment on BankAtlantic’s former corporate headquarters and a reserve for a compliance matter. | |
(2) | Percentages for periods prior to September 30, 2005 are not available. | |
(3) | Adjusted to exclude loan participations sold accounted for as secured borrowings. |
14
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(in thousands) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,409,971 | 4,483,142 | 4,539,544 | 4,799,485 | 4,616,846 | ||||||||||||||
Loan participations sold (1) | 111,754 | 138,270 | 129,891 | 165,375 | 164,180 | |||||||||||||||
Held to maturity securities | 396,251 | 427,575 | 439,015 | 483,992 | 376,298 | |||||||||||||||
Available for sale securities | 567,664 | 578,913 | 608,375 | 658,532 | 695,154 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 7,995 | 8,395 | 8,796 | 9,197 | 9,597 | |||||||||||||||
Other assets | 435,976 | 402,546 | 369,994 | 374,207 | 335,215 | |||||||||||||||
Total assets | $ | 6,000,100 | 6,109,330 | 6,166,104 | 6,561,277 | 6,267,779 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 1,152,365 | 1,019,992 | 1,017,866 | 1,039,703 | 960,152 | ||||||||||||||
NOW | 790,225 | 755,708 | 673,803 | 660,633 | 676,945 | |||||||||||||||
Savings | 351,839 | 313,889 | 303,348 | 302,677 | 296,485 | |||||||||||||||
Total low cost deposits | 2,294,429 | 2,089,589 | 1,995,017 | 2,003,013 | 1,933,582 | |||||||||||||||
Money market | 806,871 | 846,441 | 921,585 | 899,364 | 913,434 | |||||||||||||||
Certificate of deposits | 859,470 | 816,689 | 777,743 | 789,533 | 796,928 | |||||||||||||||
Total deposits | 3,960,770 | 3,752,719 | 3,694,345 | 3,691,910 | 3,643,944 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,085,914 | 1,283,532 | 1,485,649 | 1,695,265 | 1,524,881 | |||||||||||||||
Short term borrowings | 179,850 | 261,154 | 187,513 | 362,307 | 298,816 | |||||||||||||||
Secured borrowings (1) | 111,754 | 138,270 | 129,891 | 165,375 | 164,180 | |||||||||||||||
Long term debt | 36,832 | 39,092 | 36,702 | 35,232 | 35,878 | |||||||||||||||
Other liabilities | 72,102 | 89,834 | 79,228 | 69,235 | 73,191 | |||||||||||||||
Total liabilities | 5,447,222 | 5,564,601 | 5,613,328 | 6,019,324 | 5,740,890 | |||||||||||||||
Stockholder’s equity | 552,878 | 544,729 | 552,776 | 541,953 | 526,889 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,000,100 | 6,109,330 | 6,166,104 | 6,561,277 | 6,267,779 | ||||||||||||||
(1) | Amount represents loan participations sold accounted for as secured borrowings. |
15
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2006 | March 31, 2005 | |||||||||||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 2,043,309 | 25,712 | 5.03 | % | $ | 2,085,473 | 25,509 | 4.89 | % | ||||||||||||||||||||||
Commercial real estate | 1,557,880 | 30,827 | 7.92 | 1,759,747 | 28,323 | 6.44 | ||||||||||||||||||||||||||
Loan participations sold | 125,293 | 2,401 | 7.77 | 169,541 | 2,162 | 5.17 | ||||||||||||||||||||||||||
Consumer | 539,937 | 9,477 | 7.02 | 487,746 | 6,776 | 5.56 | ||||||||||||||||||||||||||
Lease financing | 467 | 15 | 12.85 | 6,242 | 151 | 9.68 | ||||||||||||||||||||||||||
Commercial business | 102,066 | 2,246 | 8.80 | 94,283 | 1,640 | 6.96 | ||||||||||||||||||||||||||
Small business | 241,103 | 4,708 | 7.81 | 195,733 | 3,491 | 7.13 | ||||||||||||||||||||||||||
Total loans | 4,610,055 | 75,386 | 6.54 | 4,798,765 | 68,052 | 5.67 | ||||||||||||||||||||||||||
Investments — tax exempt | 393,159 | 5,731 | (1 | ) | 5.83 | 334,029 | 4,829 | (1 | ) | 5.78 | ||||||||||||||||||||||
Investments — taxable | 588,072 | 8,233 | 5.60 | 732,939 | 9,555 | 5.21 | ||||||||||||||||||||||||||
Total interest earning assets | 5,591,286 | 89,350 | 6.39 | % | 5,865,733 | 82,436 | 5.62 | % | ||||||||||||||||||||||||
Goodwill and core deposit intangibles | 78,693 | 80,375 | ||||||||||||||||||||||||||||||
Other non-interest earning assets | 355,868 | 283,019 | ||||||||||||||||||||||||||||||
Total Assets | $ | 6,025,847 | $ | 6,229,127 | ||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||
Savings | $ | 331,117 | 313 | 0.38 | % | $ | 281,512 | 189 | 0.27 | % | ||||||||||||||||||||||
NOW | 760,419 | 934 | 0.50 | 664,313 | 602 | 0.37 | ||||||||||||||||||||||||||
Money market | 829,700 | 3,984 | 1.95 | 921,382 | 2,704 | 1.19 | ||||||||||||||||||||||||||
Certificate of deposit | 843,866 | 7,523 | 3.62 | 777,353 | 4,800 | 2.50 | ||||||||||||||||||||||||||
Total interest bearing deposits | 2,765,102 | 12,754 | 1.87 | 2,644,560 | 8,295 | 1.27 | ||||||||||||||||||||||||||
Short-term borrowed funds | 245,326 | 2,643 | 4.37 | 357,047 | 2,122 | 2.41 | ||||||||||||||||||||||||||
Advances from FHLB | 1,164,675 | 14,140 | 4.92 | 1,536,434 | 13,674 | 3.61 | ||||||||||||||||||||||||||
Secured borrowings | 125,293 | 2,401 | 7.77 | 169,541 | 2,162 | 5.17 | ||||||||||||||||||||||||||
Long-term debt | 37,819 | 748 | 8.02 | 37,206 | 600 | 6.54 | ||||||||||||||||||||||||||
Total interest bearing liabilities | 4,338,215 | 32,686 | 3.06 | 4,744,788 | 26,853 | 2.30 | ||||||||||||||||||||||||||
Demand deposits | 1,065,909 | 913,717 | ||||||||||||||||||||||||||||||
Non-interest bearing other liabilities | 70,349 | 44,216 | ||||||||||||||||||||||||||||||
Total Liabilities | 5,474,473 | 5,702,721 | ||||||||||||||||||||||||||||||
Stockholder’s equity | 551,374 | 526,406 | ||||||||||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,025,847 | $ | 6,229,127 | ||||||||||||||||||||||||||||
Net tax equivalent interest income/net interest spread | 56,664 | 3.33 | % | 55,583 | 3.32 | % | ||||||||||||||||||||||||||
Tax equivalent adjustment | (2,006 | ) | (1,690 | ) | ||||||||||||||||||||||||||||
Capitalized interest from real estate operations | 480 | 452 | ||||||||||||||||||||||||||||||
Net interest income | 55,138 | 54,345 | ||||||||||||||||||||||||||||||
Margin | ||||||||||||||||||||||||||||||||
Interest income/interest earning assets | 6.39 | % | 5.62 | % | ||||||||||||||||||||||||||||
Interest expense/interest earning assets | 2.37 | 1.86 | ||||||||||||||||||||||||||||||
Net interest margin (tax equivalent) | 4.02 | % | 3.76 | % | ||||||||||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 4.11 | % | 3.88 | % | ||||||||||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
16
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
Beginning balance | $ | 41,192 | 40,695 | 43,650 | 43,042 | 46,010 | ||||||||||||||
Charge-offs: | ||||||||||||||||||||
Residential real estate | (68 | ) | (8 | ) | (191 | ) | (56 | ) | (198 | ) | ||||||||||
Commercial real estate | — | — | — | — | — | |||||||||||||||
Commercial business | (12 | ) | (119 | ) | (222 | ) | (511 | ) | (286 | ) | ||||||||||
Consumer | (201 | ) | (91 | ) | (99 | ) | (43 | ) | (106 | ) | ||||||||||
Small business | (85 | ) | (102 | ) | (68 | ) | (466 | ) | (128 | ) | ||||||||||
Total charge-offs | (366 | ) | (320 | ) | (580 | ) | (1,076 | ) | (718 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Residential real estate | 178 | 9 | 55 | — | 1 | |||||||||||||||
Commercial real estate | 43 | — | — | — | — | |||||||||||||||
Commercial business | 111 | 306 | 355 | 345 | 116 | |||||||||||||||
Consumer | 199 | 238 | 159 | 121 | 176 | |||||||||||||||
Small business | 106 | 205 | 289 | 220 | 185 | |||||||||||||||
Other | 263 | 168 | 177 | 178 | 1,188 | |||||||||||||||
Total recoveries | 900 | 926 | 1,035 | 864 | 1,666 | |||||||||||||||
Net (charge-offs) recoveries | 534 | 606 | 455 | (212 | ) | 948 | ||||||||||||||
Provision (recovery from) loan losses | 163 | (109 | ) | (3,410 | ) | 820 | (3,916 | ) | ||||||||||||
Ending balance | $ | 41,889 | 41,192 | 40,695 | 43,650 | 43,042 | ||||||||||||||
Annualized net charge-offs (recoveries) to average loans | % | (0.05 | ) | (0.05 | ) | (0.04 | ) | 0.02 | (0.08 | ) | ||||||||||
As of | ||||||||||||||||||||
3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 6,101 | 6,801 | 6,883 | 5,785 | 6,504 | ||||||||||||||
Nonaccrual tax certificates | 685 | 388 | 385 | 562 | 417 | |||||||||||||||
Real estate owned | 1,647 | 967 | 912 | 1,178 | 1,438 | |||||||||||||||
Other repossessed assets | — | — | 46 | 328 | — | |||||||||||||||
Total nonperforming assets | $ | 8,433 | 8,156 | 8,226 | 7,853 | 8,359 | ||||||||||||||
Nonperforming assets to total loans and other assets | % | 0.18 | 0.17 | 0.17 | 0.16 | 0.17 | ||||||||||||||
Allowance for loan losses to total loans | % | 0.94 | 0.91 | 0.89 | 0.90 | 0.92 | ||||||||||||||
Provision expense (recovery) to average loans | % | 0.01 | (0.01 | ) | (0.29 | ) | 0.07 | (0.34 | ) | |||||||||||
Allowance to nonperforming loans | % | 686.59 | 605.68 | 591.24 | 754.54 | 661.78 |
(1) | Average and total loans exclude loan participations sold financed by secured borrowings. |
17
Ryan Beck & Co., Inc. Business Segment
Consolidated Statements of Operations and Statistics — Unaudited
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||
Revenues | ||||||||||||||||||||
Principal transactions | $ | 24,720 | 20,900 | 22,895 | 36,690 | 19,802 | ||||||||||||||
Investment banking | 3,702 | 4,511 | 3,741 | 25,394 | 11,882 | |||||||||||||||
Commissions | 22,928 | 21,891 | 21,390 | 19,478 | 20,315 | |||||||||||||||
Interest, dividends and other | 7,450 | 6,848 | 6,098 | 5,842 | 5,634 | |||||||||||||||
Total operating revenues | 58,800 | 54,150 | 54,124 | 87,404 | 57,633 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Compensation, benefits | 44,355 | 37,764 | 39,358 | 49,766 | 38,437 | |||||||||||||||
Professional fees | 1,951 | 2,287 | 1,411 | 1,591 | 1,417 | |||||||||||||||
Communications | 3,954 | 3,470 | 3,371 | 3,508 | 3,205 | |||||||||||||||
Occupancy and equipment | 3,871 | 3,887 | 4,025 | 3,786 | 4,118 | |||||||||||||||
Floor broker and clearing fees | 2,719 | 2,433 | 2,305 | 2,012 | 2,368 | |||||||||||||||
Interest and other | 5,106 | 4,291 | 3,495 | 4,733 | 3,522 | |||||||||||||||
Total operating expenses | 61,956 | 54,132 | 53,965 | 65,396 | 53,067 | |||||||||||||||
Income (loss) from Ryan Beck business segment — before income taxes | (3,156 | ) | 18 | 159 | 22,008 | 4,566 | ||||||||||||||
Provision (benefit) for income taxes | (1,591 | ) | (654 | ) | (264 | ) | 8,977 | 2,036 | ||||||||||||
Net income from Ryan Beck business segment | $ | (1,565 | ) | 672 | 423 | 13,031 | 2,530 | |||||||||||||
Statistics: | ||||||||||||||||||||
Average tangible assets | $ | 231,145 | 220,065 | 208,883 | 184,601 | 171,833 | ||||||||||||||
Average tangible equity | 99,220 | 99,456 | 99,195 | 85,735 | 85,248 | |||||||||||||||
GAAP return on average tangible assets | % | (2.71 | ) | 1.22 | 0.81 | 28.24 | 5.89 | |||||||||||||
GAAP return on average tangible equity | (6.31 | ) | 2.70 | 1.71 | 60.80 | 11.87 | ||||||||||||||
Compensation as a percent of revenues | 75.43 | 69.74 | 72.72 | 56.94 | 66.69 | |||||||||||||||
Commissions to total revenues | 38.99 | 40.43 | 39.52 | 22.29 | 35.25 | |||||||||||||||
Principal transactions to total revenues | 42.04 | 38.60 | 42.30 | 41.98 | 34.36 | |||||||||||||||
Investment banking revenue to total revenues | 6.30 | 8.33 | 6.91 | 29.05 | 20.62 |
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 3,396 | 5,366 | 5,388 | 4,103 | 6,312 | ||||||||||||||
Securities | 169,570 | 180,292 | 120,298 | 109,095 | 142,294 | |||||||||||||||
Notes receivable — GMS | 3,018 | 3,360 | 3,702 | 4,043 | 4,386 | |||||||||||||||
Property and equipment, net | 7,629 | 7,573 | 7,503 | 6,795 | 7,020 | |||||||||||||||
Goodwill | 6,184 | 6,184 | 6,184 | 6,184 | 6,184 | |||||||||||||||
Due from clearing agent | 2,672 | — | 15,650 | 22,091 | 1,120 | |||||||||||||||
Other assets | 37,916 | 37,334 | 37,332 | 51,338 | 29,426 | |||||||||||||||
Total assets | $ | 230,385 | 240,109 | 196,057 | 203,649 | 196,742 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Securities sold not yet purchased | $ | 41,828 | 35,177 | 20,688 | 28,184 | 60,276 | ||||||||||||||
Due to clearing agent | 32,206 | 24,486 | — | — | — | |||||||||||||||
Other liabilities | 51,465 | 74,100 | 69,695 | 70,214 | 44,246 | |||||||||||||||
Total liabilities | 125,499 | 133,763 | 90,383 | 98,398 | 104,522 | |||||||||||||||
Stockholder’s equity | 104,886 | 106,346 | 105,674 | 105,251 | 92,220 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 230,385 | 240,109 | 196,057 | 203,649 | 196,742 | ||||||||||||||
18
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
Condensed Statements of Operations — Unaudited
For the Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||
Net interest (expense) | $ | (4,618 | ) | (4,583 | ) | (4,457 | ) | (4,157 | ) | (3,892 | ) | |||||||||
Income from unconsolidated subsidiaries | 820 | 211 | 142 | 137 | 131 | |||||||||||||||
Gains on sales of securities | 2,541 | 475 | 158 | 3 | 95 | |||||||||||||||
Employee compensation and benefits | (1,487 | ) | (1,048 | ) | (991 | ) | (1,048 | ) | (960 | ) | ||||||||||
Other income (expense) | (471 | ) | 210 | (208 | ) | (168 | ) | (779 | ) | |||||||||||
Loss from parent company activities before income taxes | (3,215 | ) | (4,735 | ) | (5,356 | ) | (5,233 | ) | (5,405 | ) | ||||||||||
Benefit for income taxes | (1,074 | ) | (1,673 | ) | (1,902 | ) | (1,968 | ) | (1,892 | ) | ||||||||||
Net loss from parent company business segment | $ | (2,141 | ) | (3,062 | ) | (3,454 | ) | (3,265 | ) | (3,513 | ) | |||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 4,933 | 7,342 | 12,783 | 11,218 | 8,032 | ||||||||||||||
Securities | 112,006 | 104,602 | 103,755 | 100,592 | 85,711 | |||||||||||||||
Notes receivable from related parties | — | — | — | — | 16,000 | |||||||||||||||
Investment in subsidiaries | 657,765 | 651,078 | 658,454 | 647,207 | 619,111 | |||||||||||||||
Investment in unconsolidated subsidiaries | 11,996 | 12,464 | 12,510 | 7,910 | 7,910 | |||||||||||||||
Other assets | 7,383 | 8,210 | 7,075 | 13,905 | 15,452 | |||||||||||||||
Total assets | $ | 794,083 | 783,696 | 794,577 | 780,832 | 752,216 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 268,266 | 263,266 | 263,266 | 263,266 | 263,266 | ||||||||||||||
Other liabilities | 4,047 | 4,094 | 7,919 | 7,172 | 7,969 | |||||||||||||||
Total liabilities | 272,313 | 267,360 | 271,185 | 270,438 | 271,235 | |||||||||||||||
Stockholders’ equity | 521,770 | 516,336 | 523,392 | 510,394 | 480,981 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 794,083 | 783,696 | 794,577 | 780,832 | 752,216 | ||||||||||||||
19