Exhibit 99.1
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BankAtlantic Bancorp Reports
Financial Results for the Second Quarter 2006
Financial Results for the Second Quarter 2006
FORT LAUDERDALE, Florida — July 19, 2006 — BankAtlantic Bancorp, Inc. (NYSE: BBX) today announced financial results for the second quarter 2006. For the three-month period ending June 30, 2006, net income was $8.4 million, or $0.13 per diluted share, compared to $24.5 million, or $0.38 per diluted share, reported in the second quarter 2005. Year-to-date, net income was $15.1 million, or $0.24 per diluted share, compared to $44.4 million, or $0.69 per diluted share, for the first six months of 2005.
Alan B. Levan, Chairman and Chief Executive Officer of BankAtlantic Bancorp commented, “In BankAtlantic, the second quarter’s results are consistent with our long term strategy of growing our banking franchise, and with our focus on long term returns rather than short-term earnings. The quarter’s performance also reflects the impact of a $2.1 million loss at Ryan Beck, discussed in detail later in this release, compared to a $13.0 million profit for the corresponding 2005 quarter.
“As we have previously discussed, BankAtlantic’s strategy includes an aggressive marketing program, new store expansion program, and extended hours ‘convenience model.’ Although these initiatives involve incremental costs that result in lower earnings than those of prior periods, we continue to believe these costs will translate into enhanced long term profitability and shareholder value.
“During the second quarter, demand deposits rose to a record level of 29.2% of total deposits and low cost deposits (demand, savings, and NOW accounts) grew to a record 58.4% of total deposits. In spite of the continued general national declines in these deposits (which have steadily declined since June, 2005), we believe BankAtlantic’s growth in new low cost deposits is among the highest in the industry and continues to outperform the national trend by approximately 15%.
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“Earning assets were essentially unchanged for the second quarter compared to the prior quarter, consistent with our posture in response to interest rates and a flat yield curve, and as discussed below, our margin has continued to improve. Asset quality has remained high.
“Earlier during the second quarter, we announced that Ryan Beck Holdings, Inc., the parent company of Ryan Beck & Co., Inc., had filed a registration statement with the Securities and Exchange Commission for an initial public offering of shares of Ryan Beck Holdings, Inc.’s Class A Common Stock. The purpose of the proposed offering is to monetize a portion of BankAtlantic Bancorp’s investment in Ryan Beck through payment to BankAtlantic Bancorp of a special dividend funded by a portion of the net proceeds. While we remain intent on monetizing some portion of our investment in Ryan Beck, we have postponed the previously announced initial public offering due to a combination of current equity market conditions and Ryan Beck’s weak recent financial performance. At this point, we anticipate proceeding with the offering when market conditions permit and results at Ryan Beck improve.
“As part of our on-going stock repurchase program, we bought 250,000 shares of our stock in market transactions during the quarter.
Commentary on Business Segment Operations:
BankAtlantic:
“BankAtlantic’s ‘Florida’s Most Convenient Bank’ initiatives of providing convenience and service continue to deliver good results. During the second quarter, BankAtlantic opened 58,000 new low cost deposit accounts, an increase of 19% over the number of accounts opened in the corresponding 2005 quarter. These new accounts resulted in approximately $157 million in new low cost deposit balances. Year-to-date, BankAtlantic opened approximately 135,000 new low cost deposit accounts, a 29% increase, with corresponding new balances of approximately $309 million.
“At quarter end, ‘total bank’ and ‘same store’ low cost deposit balances increased 11.8% and 9.6%, respectively, vs. the second quarter 2005, representing a $236 million increase in low cost deposit balances over the second quarter 2005.While these results are lower than recent growth rates at BankAtlantic, we believe that growth of new accounts has been significantly offset by declines in average balances in our ‘legacy’ customer base. We believe the decline in
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balances in legacy accounts results from external issues, including the impact of higher interest rates, competition from alternative investment products, significantly increased energy prices, and other similar factors.
“For the second quarter 2006, net income for BankAtlantic was $12.8 million, down from $14.8 million in the comparable 2005 period. Net interest income for the second quarter 2006 was $55.3 million, or $0.8 million lower than the 2005 quarter, due to lower earning assets, which more than offset an improved margin. We have continued our strategy of using the growth in low cost deposits to reduce borrowings, and as a result, the ratio of borrowings to total deposits and borrowings at quarter end improved to 29%, down from 38% in the second quarter of 2005, although up slightly from the immediately preceding quarter. Our longer term expectation is for this ratio to trend toward the 10-15% range.
“Non-interest income for the second quarter was $35.0 million, 40% greater than the comparable 2005 period, primarily driven by growth in deposit service charges and other fees. Non-interest expense of $72.2 million was $13.9 million, or 24% greater than the corresponding quarter of 2005. The growth in expenses from the prior year was largely the result of an $8.9 million (32%) increase in personnel costs, and a $3.4 million (34%) increase in occupancy and equipment expense, again reflecting our growth initiatives and store expansion strategy. Advertising expense increased $1.2 million (19%) from the prior year, reflecting our aggressive program to attract low cost deposits.
“The tax equivalent net interest margin was 4.17%, improved from 4.11% in the first quarter of 2006 and 3.90% in the corresponding quarter of 2005. (All references to net interest margin exclude loan participations sold previously recognized as secured borrowings.) We believe the margin improvement is particularly significant in light of the continued flatness of the yield curve. Although further margin improvement will largely depend on the future pattern of interest rates, we continue to believe our high level of low cost deposits and the expected growth in those deposits should result in a gradual further improvement in BankAtlantic’s margin.
“Credit quality remained good during the second quarter, with the ratio of non-performing loans to total loans decreasing from 0.14% three months ago to 0.12% at June 30, 2006. The ratio of non-performing assets to total loans plus other real estate also declined
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modestly during the same period to 0.17%. The allowance for loan losses (ALL) was unchanged from the March 2006 quarter, remaining at $42 million.
“During the quarter BankAtlantic announced its store expansion program for the next two years, including the anticipated opening of 20 new stores in 2006 and 27 new stores in 2007. To date in 2006, BankAtlantic has opened five new stores. Each of the new stores opened in 2006 has met or exceeded our expectations for deposit growth, and we are encouraged with the progress in incremental contribution by these stores.
Ryan Beck & Co.:
“During the second quarter of 2006, Ryan Beck & Co. recorded a net loss of $2.1 million compared to a profit of $13.0 million in the comparable quarter of 2005. On a per share basis, this is equivalent to a $0.03 per diluted share loss, compared to a per diluted share contribution of $0.21 in the 2005 quarter. We believe the loss was largely due to continued weakness in its capital markets and investment banking activities, as well as the compensation costs and direct expenses associated with the expansion of those activities, including expansion of municipal finance and trading areas, principally in late 2005. Additionally, the 2005 quarter included one very large investment banking transaction which contributed significant investment banking fees and capital markets commissions to the quarter’s performance. We anticipate an improvement in the Ryan Beck performance in the second half of 2006, as Ryan Beck’s 2005 expansion initiatives are expected to produce better results.
“Retail brokerage activity, which involves providing wealth management services to the mass affluent market, had second quarter revenue of $36.2 million compared to $35.2 million for the second quarter of 2005. Total client assets have risen to a record high $19 billion. During the past 12 months, this area successfully recruited 56 experienced Financial Consultants.
“Revenue from capital markets activities was $14.5 million compared to $20.4 million for the second quarter of 2005. This decrease was due to the large investment banking transaction in 2005, and excluding that transaction from 2005 results, capital markets had higher revenue in 2006.
“Investment banking activities resulted in second quarter revenue of $3.4 million compared to $30.3 million for the second quarter 2005. This decrease resulted principally from
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the large 2005 underwriting transaction along with decreased activity in Ryan Beck’s principal markets.”
Financial Highlights:
Second Quarter, 2006 Compared to Second Quarter, 2005
BankAtlantic Bancorp — consolidated:
• | Net income of $8.4 million vs. $24.5 million | ||
• | Diluted earnings per share of $0.13 vs. $0.38 | ||
• | Return on average tangible equity was 7.47% | ||
• | Book value per share was $8.51 |
BankAtlantic:
• | Business segment net income was $12.8 million vs. $14.8 million, a decrease of 14% | ||
• | 58,000 new low cost deposit accounts opened, an increase of 19% over accounts opened in the corresponding 2005 quarter, with related new balances of $157 million | ||
• | Return on average tangible assets was 0.88% | ||
• | Return on average tangible equity was 10.38% | ||
• | Tax equivalent net interest margin increased to 4.17% vs. 3.79% | ||
• | Non-interest income was $35.0 million vs. $25.0 million, an increase of 40% | ||
• | Non-interest expense grew to $72.2 million vs. $58.3 million, an increase of 24% |
Ryan Beck & Co.:
• | Business segment net loss was ($2.1) million vs. net income of $13.0 million, a decrease of 116% | ||
• | Return on average tangible equity was (8.55%) | ||
• | Total revenues were $55.4 million vs. $87.4 million (the 2005 quarter included one very large public offering in which Ryan Beck was the joint lead manager) | ||
• | Retail brokerage revenue was $36.2 million vs. $35.2 million | ||
• | Capital markets revenue was $14.5 million vs. $20.4 million | ||
• | Investment banking revenue was $3.4 million vs. $30.3 million |
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Year to Date 2006 Compared to Year to Date 2005
BankAtlantic Bancorp — consolidated:
• | Net income was $15.1 million vs. $44.4 million, a decrease of 66% | ||
• | Earnings per share of $0.24 vs. $0.69, a decrease of 65% | ||
• | Return on average tangible equity was 6.77% |
BankAtlantic:
• | Business segment net income was $23.2 million vs. $35.6 million, a decrease of 35% | ||
• | 135,000 new low cost deposit accounts opened, an increase of 29% over new accounts opened in the corresponding 2005 period, with related new balances of $309 million | ||
• | Return on average tangible assets was 0.79% | ||
• | Return on average tangible equity was 9.50% | ||
• | Tax equivalent net interest margin increased to 4.09% vs. 3.78% | ||
• | Non-interest income was $60.4 million (excluding gains associated with debt redemption) vs. $48.5 million, an increase of 25% | ||
• | Non-interest expense increased to $139.6 million vs. $108.6 million, an increase of 29% |
Ryan Beck & Co.:
• | Business segment net loss was ($3.6) million vs. net income of $15.6 million | ||
• | Return on average tangible equity was (7.42%) | ||
• | Total operating revenues decreased to $114.2 million vs. $145.0 million (the 2005 quarter included one very large public offering in which Ryan Beck was the joint lead manager) | ||
• | Retail brokerage revenue was $75.7 million vs. $74.5 million | ||
• | Capital markets revenue was $28.2 million vs. $27.7 million | ||
• | Investment banking revenue was $6.3 million vs. $40.7 million |
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BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Thursday, July 20, 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 to call is 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number2645022.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Friday, August 18, 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 is2645022.
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, or go directly tohttp://www.visualwebcaster.com/event.asp?id=34592. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Friday, August 18, 2006.
BankAtlantic Bancorp’s second 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 financial summary, access the “Investor Relations” section and click on the “Quarterly Financials” navigation link. | ||
• | To view the Supplemental Financials, access the “Investor Relations” section and click on the “Supplemental Financials” navigation link. |
Copies of BankAtlantic Bancorp’s second quarter, 2006 earnings results press release and financial summary, and the Supplemental Financials will also be made available upon request via
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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.
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 81 stores and operates approximately 250 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.
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 81 stores and operates approximately 250 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.
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
* 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:
Leo Hinkley,
Senior Vice President, Investor Relations
Email:InvestorRelations@BankAtlanticBancorp.com
Leo Hinkley,
Senior Vice President, Investor Relations
Email:InvestorRelations@BankAtlanticBancorp.com
Donna Rouzeau,
Assistant Vice President, Investor Relations & Corporate Communications
Email:CorpComm@BankAtlanticBancorp.com
Assistant Vice President, Investor Relations & Corporate Communications
Email:CorpComm@BankAtlanticBancorp.com
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Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
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, 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, new store expansion program, and other growth, marketing or advertising initiatives not resulting in continued growth of low cost deposits or producing results which justify their costs; successfully opening the anticipated number of new stores in 2006 and 2007 and achieving growth and profitability at the stores; and the impact of periodic testing of goodwill and other intangible assets for impairment. 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, including that the expansion of its municipal finance, investment banking and capital markets areas, including the associated increased headcount, will produce results which justify the increased expenses; 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 when anticipated, if at all, 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 | For the Six Months Ended | |||||||||||||||||||||||||||||||
6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 6/30/2006 | 6/30/2005 | ||||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||||
Net income (loss) (GAAP basis) | $ | 8,412 | 6,712 | (1,493 | ) | 16,260 | 24,537 | 15,124 | 44,415 | |||||||||||||||||||||||
Operating net income ** | (note 1) | $ | 8,374 | 6,704 | 8,507 | 16,260 | 26,946 | 15,078 | 46,824 | |||||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 61,324 | 61,005 | 60,618 | 60,555 | 60,453 | 61,166 | 60,263 | |||||||||||||||||||||||||
Diluted | 62,820 | 62,761 | 62,898 | 63,193 | 63,161 | 62,792 | 63,176 | |||||||||||||||||||||||||
Key Performance Ratios (GAAP basis): | ||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.14 | 0.11 | (0.03 | ) | 0.27 | 0.41 | 0.25 | 0.74 | |||||||||||||||||||||||
Diluted earnings (loss) per share * | $ | 0.13 | 0.11 | (0.03 | ) | 0.26 | 0.38 | 0.24 | 0.69 | |||||||||||||||||||||||
Return on average tangible assets | (note 2) | % | 0.54 | 0.43 | (0.09 | ) | 0.98 | 1.48 | 0.48 | 1.36 | ||||||||||||||||||||||
Return on average tangible equity | (note 2) | % | 7.47 | 6.06 | (1.32 | ) | 15.05 | 23.98 | 6.77 | 22.12 | ||||||||||||||||||||||
Key Performance Ratios (Operating basis): | ||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.14 | 0.11 | 0.14 | 0.27 | 0.45 | 0.25 | 0.78 | ||||||||||||||||||||||||
Diluted earnings per share * | $ | 0.13 | 0.11 | 0.13 | 0.26 | 0.42 | 0.24 | 0.73 | ||||||||||||||||||||||||
Return on average tangible assets | (note 2) | % | 0.54 | 0.43 | 0.53 | 0.98 | 1.62 | 0.48 | 1.43 | |||||||||||||||||||||||
Return on average tangible equity | (note 2) | % | 7.43 | 6.05 | 7.52 | 15.05 | 26.33 | 6.75 | 23.32 | |||||||||||||||||||||||
* Diluted earnings per share calculation deducts (in thousands): | ||||||||||||||||||||||||||||||||
subsidiaries stock options, if dilutive | $ | — | — | (28 | ) | (21 | ) | (665 | ) | — | (785 | ) | ||||||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||||
Assets | $ | 6,272 | 6,388 | 6,463 | 6,692 | 6,729 | 6,330 | 6,629 | ||||||||||||||||||||||||
Tangible assets | (note 2) | $ | 6,188 | 6,304 | 6,378 | 6,607 | 6,643 | 6,245 | 6,542 | |||||||||||||||||||||||
Loans excluding certain loan participations sold | (note 3) | $ | 4,482 | 4,488 | 4,550 | 4,726 | 4,802 | 4,610 | 4,567 | |||||||||||||||||||||||
Loan participations sold | (note 3) | $ | — | 125 | 134 | 148 | 165 | 62 | 168 | |||||||||||||||||||||||
Investments | $ | 1,258 | 1,259 | 1,263 | 1,322 | 1,306 | 1,259 | 1,274 | ||||||||||||||||||||||||
Deposits and escrows | $ | 3,849 | 3,831 | 3,704 | 3,655 | 3,658 | 3,840 | 3,608 | ||||||||||||||||||||||||
Stockholders’ equity | $ | 526 | 522 | 533 | 516 | 490 | 524 | 485 | ||||||||||||||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 451 | 443 | 453 | 432 | 409 | 447 | 402 |
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) | 6/30/2006 | 12/31/2005 | 6/30/2005 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 163,394 | 167,032 | 159,173 | ||||||||
Short term investments | 1,263 | 3,229 | 5,783 | |||||||||
Securities available for sale (at fair value) | 662,304 | 674,544 | 749,188 | |||||||||
Securities owned (at fair value) | 174,657 | 180,292 | 109,095 | |||||||||
Investment securities and tax certificates (approximate fair value: $411,117, $364,122 and $403,951) | 415,127 | 364,444 | 402,430 | |||||||||
Loans receivable, net of allowance for loan losses of $42,012, $41,192 and $43,650 | 4,484,764 | 4,624,772 | 4,968,904 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 62,667 | 69,931 | 88,362 | |||||||||
Accrued interest receivable | 42,655 | 41,490 | 41,270 | |||||||||
Real estate held for development and sale | 23,585 | 21,177 | 23,982 | |||||||||
Investments and advances to unconsolidated subsidiaries | 11,996 | 12,464 | 7,910 | |||||||||
Office properties and equipment, net | 187,283 | 154,120 | 135,012 | |||||||||
Deferred tax asset, net | 35,235 | 29,615 | 22,636 | |||||||||
Goodwill | 76,674 | 76,674 | 76,674 | |||||||||
Core deposit intangible asset | 7,608 | 8,395 | 9,197 | |||||||||
Due from clearing agent | 3,963 | — | 22,091 | |||||||||
Other assets | 49,182 | 43,232 | 61,344 | |||||||||
Total assets | $ | 6,402,357 | 6,471,411 | 6,883,051 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits | ||||||||||||
Demand | $ | 1,119,604 | 1,019,949 | 1,039,611 | ||||||||
NOW | 747,437 | 755,708 | 660,633 | |||||||||
Savings | 372,212 | 313,889 | 302,677 | |||||||||
Money market | 740,192 | 846,441 | 899,364 | |||||||||
Certificates of deposit | 855,561 | 816,689 | 789,533 | |||||||||
Total deposits | 3,835,006 | 3,752,676 | 3,691,818 | |||||||||
Advances from FHLB | 1,127,065 | 1,283,532 | 1,695,265 | |||||||||
Securities sold under agreements to repurchase | 196,099 | 116,026 | 246,360 | |||||||||
Federal funds purchased | 224,322 | 139,475 | 109,500 | |||||||||
Secured borrowings | — | 138,270 | 165,375 | |||||||||
Subordinated debentures, notes and bonds payable | 37,378 | 39,092 | 35,232 | |||||||||
Junior subordinated debentures | 263,266 | 263,266 | 263,266 | |||||||||
Securities sold but not yet purchased | 39,173 | 35,177 | 28,184 | |||||||||
Due to clearing agent | 38,730 | 24,486 | — | |||||||||
Other liabilities | 120,327 | 163,075 | 137,657 | |||||||||
Total liabilities | 5,881,366 | 5,955,075 | 6,372,657 | |||||||||
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 56,338,922, 55,884,089 and 55,766,653 shares | 564 | 559 | 558 | |||||||||
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 | 261,325 | 261,720 | 260,829 | |||||||||
Unearned compensation — restricted stock grants | — | (936 | ) | (916 | ) | |||||||
Retained earnings | 271,740 | 261,279 | 251,129 | |||||||||
Total stockholders’ equity before accumulated other comprehensive income | 533,678 | 522,671 | 511,649 | |||||||||
Accumulated other comprehensive (loss) | (12,687 | ) | (6,335 | ) | (1,255 | ) | ||||||
Total stockholders’ equity | 520,991 | 516,336 | 510,394 | |||||||||
Total liabilities and stockholders’ equity | $ | 6,402,357 | 6,471,411 | 6,883,051 | ||||||||
2
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For the Six | ||||||||||||||||||||||||||||||||
For The Three Months Ended | Months Ended | |||||||||||||||||||||||||||||||
(in thousands) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 6/30/2006 | 6/30/2005 | |||||||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 75,765 | 75,386 | 75,404 | 75,747 | 73,582 | 151,151 | 142,099 | ||||||||||||||||||||||||
Interest on securities available for sale | 4,314 | 4,305 | 4,379 | 4,741 | 5,258 | 8,619 | 10,553 | |||||||||||||||||||||||||
Interest on tax exempt securities | 4,856 | 4,229 | 4,027 | 3,963 | 4,016 | 9,085 | 7,369 | |||||||||||||||||||||||||
Interest and dividends on investments and | ||||||||||||||||||||||||||||||||
securities owned | 7,393 | 8,191 | 8,777 | 8,478 | 7,685 | 15,584 | 14,868 | |||||||||||||||||||||||||
Total interest income | 92,328 | 92,111 | 92,587 | 92,929 | 90,541 | 184,439 | 174,889 | |||||||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Interest on deposits | 13,852 | 12,754 | 11,736 | 10,519 | 9,534 | 26,606 | 17,829 | |||||||||||||||||||||||||
Interest on advances from FHLB | 13,007 | 14,139 | 15,565 | 17,332 | 15,604 | 27,146 | 29,278 | |||||||||||||||||||||||||
Interest on short-term borrowed funds | 4,931 | 2,575 | 2,746 | 2,108 | 2,646 | 7,506 | 4,745 | |||||||||||||||||||||||||
Interest on secured borrowings | — | 2,401 | 2,862 | 2,637 | 2,483 | 2,401 | 4,645 | |||||||||||||||||||||||||
Interest on long-term debt | 7,891 | 7,584 | 6,825 | 6,392 | 6,316 | 15,475 | 11,988 | |||||||||||||||||||||||||
Capitalized interest on real estate development | (289 | ) | (480 | ) | (513 | ) | (477 | ) | (437 | ) | (769 | ) | (889 | ) | ||||||||||||||||||
Total interest expense | 39,392 | 38,973 | 39,221 | 38,511 | 36,146 | 78,365 | 67,596 | |||||||||||||||||||||||||
NET INTEREST INCOME | 52,936 | 53,138 | 53,366 | 54,418 | 54,395 | 106,074 | 107,293 | |||||||||||||||||||||||||
Provision (recovery from) loan losses | (20 | ) | 163 | (109 | ) | (3,410 | ) | 820 | 143 | (3,096 | ) | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 52,956 | 52,975 | 53,475 | 57,828 | 53,575 | 105,931 | 110,389 | |||||||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Service charges on deposits | 21,274 | 19,099 | 17,808 | 16,415 | 14,744 | 40,373 | 27,733 | |||||||||||||||||||||||||
Other service charges and fees | 7,353 | 6,222 | 6,436 | 5,824 | 5,849 | 13,575 | 11,087 | |||||||||||||||||||||||||
Broker/dealer revenue | 51,381 | 54,562 | 49,831 | 50,368 | 83,915 | 105,943 | 138,601 | |||||||||||||||||||||||||
Securities activities, net | 2,830 | 2,541 | 474 | 181 | 90 | 5,371 | 192 | |||||||||||||||||||||||||
Gain on sales of loans | 200 | 94 | 221 | 295 | 116 | 294 | 226 | |||||||||||||||||||||||||
Gain associated with debt redemption | 1,092 | 436 | — | — | — | 1,528 | — | |||||||||||||||||||||||||
Income (loss) from real estate operations | 114 | (1,096 | ) | (558 | ) | 1,142 | 1,655 | (982 | ) | 3,896 | ||||||||||||||||||||||
Income from unconsolidated subsidiaries | 278 | 820 | 211 | 142 | 137 | 1,098 | 268 | |||||||||||||||||||||||||
Gain (loss) on the sale of office properties and equipment, net | 1,806 | (28 | ) | (16 | ) | — | 293 | 1,778 | 293 | |||||||||||||||||||||||
Other | 2,676 | 2,272 | 2,315 | 2,137 | 2,404 | 4,948 | 5,577 | |||||||||||||||||||||||||
Total non-interest income | 89,004 | 84,922 | 76,722 | 76,504 | 109,203 | 173,926 | 187,873 | |||||||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Employee compensation and benefits | 80,011 | 80,200 | 70,257 | 68,455 | 78,391 | 160,211 | 144,186 | |||||||||||||||||||||||||
Occupancy and equipment | 17,516 | 16,247 | 15,394 | 14,853 | 13,953 | 33,763 | 27,190 | |||||||||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | 3,706 | — | 3,706 | |||||||||||||||||||||||||
Advertising and promotion | 8,644 | 9,957 | 11,701 | 6,667 | 8,069 | 18,601 | 14,367 | |||||||||||||||||||||||||
Professional fees | 4,189 | 4,250 | 4,692 | 4,207 | 4,316 | 8,439 | 8,397 | |||||||||||||||||||||||||
Communications | 3,930 | 3,954 | 3,470 | 3,371 | 3,508 | 7,884 | 6,713 | |||||||||||||||||||||||||
Floor broker and clearing fees | 2,142 | 2,719 | 2,433 | 2,305 | 2,012 | 4,861 | 4,380 | |||||||||||||||||||||||||
Costs associated with debt redemption | 1,034 | 423 | — | — | — | 1,457 | — | |||||||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | 10,000 | — | — | — | — | |||||||||||||||||||||||||
Other | 14,297 | 11,918 | 12,052 | 11,326 | 10,188 | 26,215 | 19,989 | |||||||||||||||||||||||||
Total non-interest expense | 131,763 | 129,668 | 129,999 | 111,184 | 124,143 | 261,431 | 228,928 | |||||||||||||||||||||||||
Income before income taxes | 10,197 | 8,229 | 198 | 23,148 | 38,635 | 18,426 | 69,334 | |||||||||||||||||||||||||
Provision for income taxes | 1,785 | 1,517 | 1,691 | 6,888 | 14,098 | 3,302 | 24,919 | |||||||||||||||||||||||||
GAAP net income (loss) | $ | 8,412 | 6,712 | (1,493 | ) | 16,260 | 24,537 | 15,124 | 44,415 | |||||||||||||||||||||||
Reconciliation of Operating and GAAP Net Income | ||||||||||||||||||||||||||||||||
GAAP net income (loss) | $ | 8,412 | 6,712 | (1,493 | ) | 16,260 | 24,537 | 15,124 | 44,415 | |||||||||||||||||||||||
Gain associated with debt redemption | (710 | ) | (283 | ) | — | — | — | (993 | ) | — | ||||||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | 2,409 | — | 2,409 | |||||||||||||||||||||||||
Costs associated with debt redemption | 672 | 275 | — | — | — | 947 | — | |||||||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | 10,000 | — | — | — | — | |||||||||||||||||||||||||
Operating net income | (note 1) | $ | 8,374 | 6,704 | 8,507 | 16,260 | 26,946 | 15,078 | 46,824 | |||||||||||||||||||||||
3
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) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,047,430 | 2,043,310 | 2,115,899 | 2,245,067 | 2,262,214 | ||||||||||||||||||
Commercial real estate excluding certain loan participations sold | (note 3) | 1,483,299 | 1,561,236 | 1,576,131 | 1,643,570 | 1,731,243 | ||||||||||||||||||
Loan participations sold | (note 3) | — | 125,293 | 134,080 | 147,633 | 164,778 | ||||||||||||||||||
Consumer | 546,624 | 539,937 | 538,321 | 527,190 | 505,338 | |||||||||||||||||||
Lease financing | 172 | 467 | 1,433 | 2,768 | 4,710 | |||||||||||||||||||
Commercial business | 148,604 | 102,066 | 91,979 | 90,578 | 91,756 | |||||||||||||||||||
Small business | 255,701 | 241,103 | 226,153 | 216,931 | 206,272 | |||||||||||||||||||
Total Loans | 4,481,830 | 4,613,412 | 4,683,996 | 4,873,737 | 4,966,311 | |||||||||||||||||||
Investments — taxable | 853,224 | 857,866 | 867,625 | 924,911 | 899,134 | |||||||||||||||||||
Investments — tax exempt | 404,644 | 401,541 | 394,935 | 396,908 | 406,403 | |||||||||||||||||||
Total interest earning assets | 5,739,698 | 5,872,819 | 5,946,556 | 6,195,556 | 6,271,848 | |||||||||||||||||||
Goodwill and core deposit intangibles | 84,486 | 84,878 | 85,277 | 85,679 | 86,095 | |||||||||||||||||||
Other non-interest earning assets | 448,191 | 430,746 | 431,215 | 411,116 | 371,549 | |||||||||||||||||||
Total assets | $ | 6,272,375 | 6,388,443 | 6,463,048 | 6,692,351 | 6,729,492 | ||||||||||||||||||
Tangible assets | (note 2) | $ | 6,187,889 | 6,303,565 | 6,377,771 | 6,606,672 | 6,643,397 | |||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand deposits | $ | 1,109,005 | 1,065,510 | 1,017,467 | 1,000,219 | 981,643 | ||||||||||||||||||
Savings | 364,946 | 331,117 | 309,007 | 303,268 | 301,331 | |||||||||||||||||||
NOW | 764,738 | 760,419 | 692,128 | 666,567 | 685,769 | |||||||||||||||||||
Money market | 765,805 | 829,700 | 887,858 | 904,382 | 906,514 | |||||||||||||||||||
Certificates of deposit | 844,318 | 843,866 | 797,187 | 781,044 | 782,335 | |||||||||||||||||||
Total deposits | 3,848,812 | 3,830,612 | 3,703,647 | 3,655,480 | 3,657,592 | |||||||||||||||||||
Short-term borrowed funds | 396,870 | 239,144 | 276,333 | 251,242 | 359,861 | |||||||||||||||||||
FHLB advances | 1,010,458 | 1,164,675 | 1,345,033 | 1,659,411 | 1,615,310 | |||||||||||||||||||
Secured borrowings | (note 3) | — | 125,293 | 134,080 | 147,633 | 164,778 | ||||||||||||||||||
Long-term debt | 303,052 | 301,529 | 301,655 | 298,887 | 299,075 | |||||||||||||||||||
Total borrowings | 1,710,380 | 1,830,641 | 2,057,101 | 2,357,173 | 2,439,024 | |||||||||||||||||||
Other liabilities | 186,741 | 204,693 | 169,156 | 163,581 | 142,617 | |||||||||||||||||||
Total liabilities | 5,745,933 | 5,865,946 | 5,929,904 | 6,176,234 | 6,239,233 | |||||||||||||||||||
Stockholders’ equity | 526,442 | 522,497 | 533,144 | 516,117 | 490,259 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,272,375 | 6,388,443 | 6,463,048 | 6,692,351 | 6,729,492 | ||||||||||||||||||
Other comprehensive (loss) in stockholders’ equity | (8,700 | ) | (5,350 | ) | (4,810 | ) | (1,612 | ) | (5,119 | ) | ||||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 450,656 | 442,969 | 452,677 | 432,050 | 409,283 | |||||||||||||||||
Period End | ||||||||||||||||||||||||
Total loans, net excluding certain loan participations sold | $ | 4,484,764 | 4,412,989 | 4,486,502 | 4,543,245 | 4,803,529 | ||||||||||||||||||
Loan participations sold | (note 3) | — | 111,754 | 138,270 | 129,891 | 165,375 | ||||||||||||||||||
Total assets | 6,402,357 | 6,357,602 | 6,471,411 | 6,482,713 | 6,883,051 | |||||||||||||||||||
Total stockholders’ equity | 520,991 | 521,770 | 516,336 | 523,392 | 510,394 | |||||||||||||||||||
Common shares outstanding | 61,215,046 | 61,293,692 | 60,760,213 | 60,738,610 | 60,642,777 | |||||||||||||||||||
Cash dividends | 2,330,675 | 2,334,112 | 2,308,888 | 2,308,067 | 2,122,497 | |||||||||||||||||||
Common stock cash dividends per share | 0.038 | 0.038 | 0.038 | 0.038 | 0.035 | |||||||||||||||||||
Closing stock price | 14.84 | 14.39 | 14.00 | 16.99 | 18.95 | |||||||||||||||||||
High stock price for the quarter | 15.99 | 15.23 | 17.19 | 19.33 | 19.15 | |||||||||||||||||||
Low stock price for the quarter | 13.86 | 12.67 | 13.29 | 15.64 | 16.51 | |||||||||||||||||||
Book value per share | 8.51 | 8.51 | 8.50 | 8.62 | 8.42 |
4
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(In thousands) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 6/30/2006 | 6/30/2005 | |||||||||||||||||||||
Net interest income | $ | 55,257 | 55,138 | 54,760 | 55,939 | 56,031 | 110,395 | 110,376 | ||||||||||||||||||||
Provision (recovery from) loan losses | (20 | ) | 163 | (109 | ) | (3,410 | ) | 820 | 143 | (3,096 | ) | |||||||||||||||||
Net interest income after provision for loan losses | 55,277 | 54,975 | 54,869 | 59,349 | 55,211 | 110,252 | 113,472 | |||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 21,274 | 19,099 | 17,808 | 16,415 | 14,744 | 40,373 | 27,733 | |||||||||||||||||||||
Other service charges and fees | 7,353 | 6,222 | 6,436 | 5,824 | 5,849 | 13,575 | 11,087 | |||||||||||||||||||||
Securities activities, net | 458 | (1 | ) | — | 23 | 87 | 457 | 94 | ||||||||||||||||||||
Gain on sales of loans | 200 | 94 | 221 | 295 | 116 | 294 | 226 | |||||||||||||||||||||
Gain associated with debt redemption | 1,092 | 436 | — | — | — | 1,528 | — | |||||||||||||||||||||
Income (loss) from real estate operations | 114 | (1,096 | ) | (558 | ) | 1,142 | 1,655 | (982 | ) | 3,896 | ||||||||||||||||||
Gain (loss) on the sale of office properties, net | 1,806 | (28 | ) | (16 | ) | — | 293 | 1,778 | 293 | |||||||||||||||||||
Other non-interest income | 2,663 | 2,282 | 1,944 | 2,019 | 2,221 | 4,945 | 5,177 | |||||||||||||||||||||
Total non-interest income | 34,960 | 27,008 | 25,835 | 25,718 | 24,965 | 61,968 | 48,506 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 36,517 | 34,357 | 31,445 | 28,106 | 27,577 | 70,874 | 53,975 | |||||||||||||||||||||
Occupancy and equipment | 13,584 | 12,372 | 11,503 | 10,826 | 10,165 | 25,956 | 19,282 | |||||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | 3,706 | — | 3,706 | |||||||||||||||||||||
Advertising | 7,123 | 8,296 | 10,244 | 5,518 | 5,965 | 15,419 | 11,133 | |||||||||||||||||||||
Professional fees | 2,020 | 2,193 | 2,521 | 2,641 | 2,638 | 4,213 | 4,533 | |||||||||||||||||||||
Costs associated with debt redemption | 1,034 | 423 | — | — | — | 1,457 | — | |||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | 10,000 | — | — | — | — | |||||||||||||||||||||
Other | 11,906 | 9,742 | 10,076 | 9,631 | 8,265 | 21,648 | 15,951 | |||||||||||||||||||||
Total non-interest expense | 72,184 | 67,383 | 75,789 | 56,722 | 58,316 | 139,567 | 108,580 | |||||||||||||||||||||
Income from bank operations business segment before income taxes | 18,053 | 14,600 | 4,915 | 28,345 | 21,860 | 32,653 | 53,398 | |||||||||||||||||||||
Provision for income taxes | 5,301 | 4,182 | 4,018 | 9,054 | 7,089 | 9,483 | 17,766 | |||||||||||||||||||||
Net income from bank operations business segment | $ | 12,752 | 10,418 | 897 | 19,291 | 14,771 | 23,170 | 35,632 | ||||||||||||||||||||
Reconciliation of Operating and business segment net income | ||||||||||||||||||||||||||||
Business segment income | $ | 12,752 | 10,418 | 897 | 19,291 | 14,771 | 23,170 | 35,632 | ||||||||||||||||||||
Gain associated with debt redemption | (710 | ) | (283 | ) | — | — | — | (993 | ) | — | ||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | 2,409 | — | 2,409 | |||||||||||||||||||||
Costs associated with debt redemption | 672 | 275 | — | — | — | 947 | — | |||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | 10,000 | — | — | — | — | |||||||||||||||||||||
Operating net income | $ | 12,714 | 10,410 | 10,897 | 19,291 | 17,180 | 23,124 | 38,041 | ||||||||||||||||||||
5
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
For the Six | ||||||||||||||||||||||||||||
(in thousands except percentages and per share data) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||
6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 6/30/2006 | 6/30/2005 | ||||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
GAAP tax equivalent: | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,460,276 | 5,591,286 | 5,709,807 | 5,967,885 | 6,046,843 | 5,525,419 | 5,957,794 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,189,321 | 4,338,215 | 4,485,417 | 4,754,244 | 4,856,422 | 4,263,356 | 4,801,919 | ||||||||||||||||||||
Average tangible assets | $ | 5,827,060 | 5,947,154 | 6,053,697 | 6,280,162 | 6,344,861 | 5,886,762 | 6,248,354 | ||||||||||||||||||||
Average tangible equity | $ | 491,459 | 484,162 | 495,614 | 473,387 | 463,813 | 487,830 | 456,282 | ||||||||||||||||||||
Borrowings to deposits and borrowings | % | 29.35 | 26.31 | 31.45 | 33.24 | 37.95 | 29.35 | 37.95 | ||||||||||||||||||||
Operating (3): | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,460,276 | 5,465,993 | 5,575,727 | 5,820,252 | 5,882,065 | 5,463,118 | 5,789,642 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,189,321 | 4,212,922 | 4,351,337 | 4,606,611 | 4,691,644 | 4,201,055 | 4,633,767 | ||||||||||||||||||||
Average tangible assets | $ | 5,827,060 | 5,821,861 | 5,919,617 | 6,132,529 | 6,180,083 | 5,824,461 | 6,080,202 | ||||||||||||||||||||
Average tangible equity | $ | 491,459 | 484,162 | 495,614 | 473,387 | 463,813 | 487,830 | 456,282 | ||||||||||||||||||||
GAAP tax equivalent: | ||||||||||||||||||||||||||||
Yield on earning assets | % | 6.58 | 6.39 | 6.29 | 6.08 | 5.84 | 6.48 | 5.73 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 3.14 | 3.06 | 2.97 | 2.78 | 2.55 | 3.10 | 2.42 | ||||||||||||||||||||
Interest spread | % | 3.44 | 3.33 | 3.32 | 3.30 | 3.29 | 3.39 | 3.31 | ||||||||||||||||||||
Net interest margin | % | 4.17 | 4.02 | 3.96 | 3.87 | 3.79 | 4.09 | 3.78 | ||||||||||||||||||||
Operating tax equivalent (3): | ||||||||||||||||||||||||||||
Yield on earning assets | % | 6.58 | 6.36 | 6.24 | 6.05 | 5.84 | 6.47 | 5.74 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 3.14 | 2.92 | 2.80 | 2.64 | 2.43 | 3.03 | 2.31 | ||||||||||||||||||||
Interest spread | % | 3.44 | 3.44 | 3.44 | 3.41 | 3.41 | 3.44 | 3.43 | ||||||||||||||||||||
Net interest margin | % | 4.17 | 4.11 | 4.05 | 3.96 | 3.90 | 4.14 | 3.89 | ||||||||||||||||||||
GAAP: | ||||||||||||||||||||||||||||
Efficiency ratio | % | 80.01 | 82.03 | 94.04 | 69.46 | 72.00 | 80.97 | 68.34 | ||||||||||||||||||||
Return on average tangible assets | % | 0.88 | 0.70 | 0.06 | 1.23 | 0.93 | 0.79 | 1.14 | ||||||||||||||||||||
Return on average tangible equity | % | 10.38 | 8.61 | 0.72 | 16.30 | 12.74 | 9.50 | 15.62 | ||||||||||||||||||||
Operating (1): | ||||||||||||||||||||||||||||
Efficiency ratio | % | 79.83 | 81.95 | 81.63 | 69.46 | 67.42 | 80.13 | 66.01 | ||||||||||||||||||||
Return on average tangible assets | % | 0.87 | 0.72 | 0.74 | 1.26 | 1.11 | 0.79 | 1.25 | ||||||||||||||||||||
Return on average tangible equity | % | 10.35 | 8.60 | 8.79 | 16.30 | 14.82 | 9.48 | 16.67 | ||||||||||||||||||||
Earning assets repricing (2): | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 52 | 55 | 54 | 50 | |||||||||||||||||||||||
Percent of earning assets that have variable rates | % | 48 | 45 | 46 | 50 | |||||||||||||||||||||||
One year Gap | % | (2 | ) | 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. |
6
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(In thousands) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,484,764 | 4,409,971 | 4,483,142 | 4,539,544 | 4,799,485 | ||||||||||||||
Loan participations sold (1) | — | 111,754 | 138,270 | 129,891 | 165,375 | |||||||||||||||
Held to maturity securities | 470,994 | 396,251 | 427,575 | 439,015 | 483,992 | |||||||||||||||
Available for sale securities | 569,618 | 567,664 | 578,913 | 608,375 | 658,532 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 7,608 | 7,995 | 8,395 | 8,796 | 9,197 | |||||||||||||||
Other assets | 444,923 | 435,976 | 402,546 | 369,994 | 374,207 | |||||||||||||||
Total assets | $ | 6,048,396 | 6,000,100 | 6,109,330 | 6,166,104 | 6,561,277 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 1,119,608 | 1,152,365 | 1,019,992 | 1,017,866 | 1,039,703 | ||||||||||||||
NOW | 747,437 | 790,225 | 755,708 | 673,803 | 660,633 | |||||||||||||||
Savings | 372,212 | 351,839 | 313,889 | 303,348 | 302,677 | |||||||||||||||
Total low cost deposits | 2,239,257 | 2,294,429 | 2,089,589 | 1,995,017 | 2,003,013 | |||||||||||||||
Money market | 740,192 | 806,871 | 846,441 | 921,585 | 899,364 | |||||||||||||||
Certificate of deposits | 855,561 | 859,470 | 816,689 | 777,743 | 789,533 | |||||||||||||||
Total deposits | 3,835,010 | 3,960,770 | 3,752,719 | 3,694,345 | 3,691,910 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,127,065 | 1,085,914 | 1,283,532 | 1,485,649 | 1,695,265 | |||||||||||||||
Short term borrowings | 428,942 | 179,850 | 261,154 | 187,513 | 362,307 | |||||||||||||||
Secured borrowings (1) | — | 111,754 | 138,270 | 129,891 | 165,375 | |||||||||||||||
Long term debt | 37,378 | 36,832 | 39,092 | 36,702 | 35,232 | |||||||||||||||
Other liabilities | 65,907 | 72,102 | 89,834 | 79,228 | 69,235 | |||||||||||||||
Total liabilities | 5,494,302 | 5,447,222 | 5,564,601 | 5,613,328 | 6,019,324 | |||||||||||||||
Stockholder’s equity | 554,094 | 552,878 | 544,729 | 552,776 | 541,953 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,048,396 | 6,000,100 | 6,109,330 | 6,166,104 | 6,561,277 | ||||||||||||||
(1) Amount represents loan participations sold accounted for as secured borrowings.
7
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
June 30, 2006 | June 30, 2005 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,047,430 | 26,288 | 5.14 | % | $ | 2,262,214 | 27,597 | 4.88 | % | ||||||||||||||
Commercial real estate | 1,480,314 | 30,965 | 8.37 | 1,726,861 | 30,298 | 7.02 | ||||||||||||||||||
Loan participations sold | — | — | — | 164,778 | 2,483 | 6.04 | ||||||||||||||||||
Consumer | 546,624 | 10,175 | 7.45 | 505,338 | 7,595 | 6.01 | ||||||||||||||||||
Lease financing | 173 | 4 | 9.25 | 4,710 | 131 | 11.13 | ||||||||||||||||||
Commercial business | 148,604 | 3,239 | 8.72 | 85,778 | 1,598 | 7.45 | ||||||||||||||||||
Small business | 255,701 | 5,093 | 7.97 | 206,272 | 3,788 | 7.35 | ||||||||||||||||||
Total loans | 4,478,846 | 75,764 | 6.77 | 4,955,951 | 73,490 | 5.93 | ||||||||||||||||||
Investments — tax exempt | 398,404 | 5,817 | (1) | 5.84 | 368,264 | 5,329 | (1) | 5.79 | ||||||||||||||||
Investments — taxable | 583,026 | 8,197 | 5.62 | 722,628 | 9,520 | 5.27 | ||||||||||||||||||
Total interest earning assets | 5,460,276 | 89,778 | 6.58 | % | 6,046,843 | 88,339 | 5.84 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 78,301 | 79,910 | ||||||||||||||||||||||
Other non-interest earning assets | 366,784 | 298,018 | ||||||||||||||||||||||
Total Assets | $ | 5,905,361 | $ | 6,424,771 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 364,946 | 523 | 0.57 | % | $ | 301,331 | 209 | 0.28 | % | ||||||||||||||
NOW | 764,738 | 1,023 | 0.54 | 685,769 | 723 | 0.42 | ||||||||||||||||||
Money market | 765,805 | 3,974 | 2.08 | 906,514 | 3,295 | 1.46 | ||||||||||||||||||
Certificate of deposit | 844,318 | 8,331 | 3.96 | 782,335 | 5,307 | 2.72 | ||||||||||||||||||
Total interest bearing deposits | 2,739,807 | 13,851 | 2.03 | 2,675,949 | 9,534 | 1.43 | ||||||||||||||||||
Short-term borrowed funds | 402,390 | 5,001 | 4.98 | 364,575 | 2,681 | 2.95 | ||||||||||||||||||
Advances from FHLB | 1,010,459 | 13,007 | 5.16 | 1,615,310 | 15,604 | 3.87 | ||||||||||||||||||
Secured borrowings | — | — | — | 164,778 | 2,483 | 6.04 | ||||||||||||||||||
Long-term debt | 36,665 | 916 | 10.02 | 35,810 | 578 | 6.47 | ||||||||||||||||||
Total interest bearing liabilities | 4,189,321 | 32,775 | 3.14 | 4,856,422 | 30,880 | 2.55 | ||||||||||||||||||
Demand deposits | 1,109,361 | 982,332 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 51,442 | 48,459 | ||||||||||||||||||||||
Total Liabilities | 5,350,124 | 5,887,213 | ||||||||||||||||||||||
Stockholder’s equity | 555,237 | 537,558 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,905,361 | $ | 6,424,771 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | $ | 57,003 | 3.44 | % | $ | 57,459 | 3.29 | % | ||||||||||||||||
Tax equivalent adjustment | (2,035 | ) | (1,865 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | 289 | 437 | ||||||||||||||||||||||
Net interest income | 55,257 | 56,031 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.58 | % | 5.84 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.41 | 2.05 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 4.17 | % | 3.79 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 4.17 | % | 3.90 | % | ||||||||||||||||||||
(1) The tax equivalent basis is computed using a 35% tax rate.
8
Bank Operations
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Six Months Ended | ||||||||||||||||||||||||
June 30, 2006 | June 30, 2005 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,045,381 | 52,000 | 5.08 | % | $ | 2,174,332 | 53,106 | 4.88 | % | ||||||||||||||
Commercial real estate | 1,518,882 | 61,792 | 8.14 | 1,743,213 | 58,621 | 6.73 | ||||||||||||||||||
Loan participations sold | 62,301 | 2,401 | 7.71 | 168,152 | 4,645 | 5.52 | ||||||||||||||||||
Consumer | 543,299 | 19,652 | 7.23 | 496,591 | 14,371 | 5.79 | ||||||||||||||||||
Lease financing | 319 | 20 | 12.54 | 5,472 | 298 | 10.89 | ||||||||||||||||||
Commercial business | 125,464 | 5,485 | 8.74 | 90,007 | 3,222 | 7.16 | ||||||||||||||||||
Small business | 248,442 | 9,801 | 7.89 | 201,031 | 7,279 | 7.24 | ||||||||||||||||||
Total loans | 4,544,088 | 151,151 | 6.65 | 4,878,798 | 141,542 | 5.80 | ||||||||||||||||||
Investments — tax exempt | 395,796 | 11,548 | (1) | 5.84 | 351,241 | 10,158 | 5.78 | |||||||||||||||||
Investments — taxable | 585,535 | 16,430 | 5.61 | 727,755 | 19,075 | 5.24 | ||||||||||||||||||
Total interest earning assets | 5,525,419 | 179,129 | 6.48 | % | 5,957,794 | 170,775 | 5.73 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 78,496 | 80,141 | ||||||||||||||||||||||
Other non-interest earning assets | 361,343 | 290,560 | ||||||||||||||||||||||
Total Assets | $ | 5,965,258 | $ | 6,328,495 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 348,125 | 836 | 0.48 | % | $ | 291,476 | 399 | 0.28 | % | ||||||||||||||
NOW | 762,590 | 1,957 | 0.52 | 675,100 | 1,324 | 0.40 | ||||||||||||||||||
Money market | 797,576 | 7,958 | 2.01 | 913,907 | 5,998 | 1.32 | ||||||||||||||||||
Certificate of deposit | 844,093 | 15,855 | 3.79 | 779,858 | 10,108 | 2.61 | ||||||||||||||||||
Total deposits | 2,752,384 | 26,606 | 1.95 | 2,660,341 | 17,829 | 1.35 | ||||||||||||||||||
Short-term borrowed funds | 324,292 | 7,644 | 4.75 | 360,832 | 4,804 | 2.68 | ||||||||||||||||||
Advances from FHLB | 1,087,141 | 27,146 | 5.04 | 1,576,090 | 29,278 | 3.75 | ||||||||||||||||||
Secured borrowings | 62,301 | 2,401 | 7.71 | 168,152 | 4,645 | 5.52 | ||||||||||||||||||
Long-term debt | 37,238 | 1,664 | 9.01 | 36,504 | 1,178 | 6.51 | ||||||||||||||||||
Total interest bearing liabilities | 4,263,356 | 65,461 | 3.10 | 4,801,919 | 57,734 | 2.42 | ||||||||||||||||||
Demand deposits | 1,087,755 | 948,214 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 60,831 | 46,349 | ||||||||||||||||||||||
Total Liabilities | 5,411,942 | 5,796,482 | ||||||||||||||||||||||
Stockholder’s equity | 553,316 | 532,013 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,965,258 | $ | 6,328,495 | ||||||||||||||||||||
Net interest income/net interest spread | $ | 113,668 | 3.39 | % | $ | 113,041 | 3.31 | % | ||||||||||||||||
Tax equivalent adjustment | (4,042 | ) | (3,554 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | 769 | 889 | ||||||||||||||||||||||
Net interest income | 110,395 | 110,376 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.48 | % | 5.73 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.39 | 1.95 | ||||||||||||||||||||||
Net interest margin | 4.09 | % | 3.78 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 4.14 | % | 3.89 | % | ||||||||||||||||||||
(1) The tax equivalent basis is computed using a 35% tax rate.
9
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 6/30/2006 | 6/30/2005 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 41,889 | 41,192 | 40,695 | 43,650 | 43,042 | 41,192 | 46,010 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (60 | ) | (68 | ) | (8 | ) | (191 | ) | (56 | ) | (128 | ) | (254 | ) | ||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial business | (22 | ) | (12 | ) | (119 | ) | (222 | ) | (511 | ) | (34 | ) | (797 | ) | ||||||||||||||
Consumer | (39 | ) | (201 | ) | (91 | ) | (99 | ) | (43 | ) | (240 | ) | (149 | ) | ||||||||||||||
Small business | (229 | ) | (85 | ) | (102 | ) | (68 | ) | (466 | ) | (314 | ) | (594 | ) | ||||||||||||||
Total charge-offs | (350 | ) | (366 | ) | (320 | ) | (580 | ) | (1,076 | ) | (716 | ) | (1,794 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | — | 178 | 9 | 55 | — | 178 | 1 | |||||||||||||||||||||
Commercial real estate | — | 9 | — | — | — | 9 | — | |||||||||||||||||||||
Commercial business | 116 | 111 | 306 | 355 | 345 | 227 | 461 | |||||||||||||||||||||
Consumer | 98 | 199 | 238 | 159 | 121 | 297 | 297 | |||||||||||||||||||||
Small business | 119 | 140 | 205 | 289 | 220 | 259 | 405 | |||||||||||||||||||||
Other | 160 | 263 | 168 | 177 | 178 | 423 | 1,366 | |||||||||||||||||||||
Total recoveries | 493 | 900 | 926 | 1,035 | 864 | 1,393 | 2,530 | |||||||||||||||||||||
Net (charge-offs) recoveries | 143 | 534 | 606 | 455 | (212 | ) | 677 | 736 | ||||||||||||||||||||
Provision (recovery from) loan losses | (20 | ) | 163 | (109 | ) | (3,410 | ) | 820 | 143 | (3,096 | ) | |||||||||||||||||
Ending balance | $ | 42,012 | 41,889 | 41,192 | 40,695 | 43,650 | 42,012 | 43,650 | ||||||||||||||||||||
Annualized net charge-offs (recoveries) to average loans | % | (0.01 | ) | (0.05 | ) | (0.05 | ) | (0.04 | ) | 0.02 | (0.03 | ) | (0.03 | ) | ||||||||||||||
As of | |||||||||||||||||||||
6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | |||||||||||||||||
Credit Quality | |||||||||||||||||||||
Nonaccrual loans | $ | 5,349 | 6,101 | 6,801 | 6,883 | 5,785 | |||||||||||||||
Nonaccrual tax certificates | 857 | 685 | 388 | 385 | 562 | ||||||||||||||||
Real estate owned | 1,907 | 1,647 | 967 | 912 | 1,178 | ||||||||||||||||
Other repossessed assets | — | — | — | 46 | 328 | ||||||||||||||||
Total nonperforming assets | $ | 8,113 | 8,433 | 8,156 | 8,226 | 7,853 | |||||||||||||||
Nonperforming assets to total loans and other assets | % | 0.17 | 0.18 | 0.17 | 0.17 | 0.16 | |||||||||||||||
Allowance for loan losses to total loans | % | 0.93 | 0.94 | 0.91 | 0.89 | 0.90 | |||||||||||||||
Provision expense (recovery) to average loans | % | 0.00 | 0.01 | (0.01 | ) | (0.29 | ) | 0.07 | |||||||||||||
Allowance to nonperforming loans | % | 785.42 | 686.59 | 605.68 | 591.24 | 754.54 |
(1) Average and total loans exclude loan participations sold financed by secured borrowings.
10
Ryan Beck & Co., Inc. Business Segment
Consolidated Statements of Operations and Statistics — Unaudited
Consolidated Statements of Operations and Statistics — Unaudited
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 6/30/2006 | 6/30/2005 | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Retail brokerage | $ | 36,209 | 39,490 | 36,093 | 37,831 | 35,168 | 75,699 | 74,455 | ||||||||||||||||||||
Capital markets activities | 14,489 | 13,747 | 10,346 | 9,534 | 20,393 | 28,236 | 27,729 | |||||||||||||||||||||
Investment banking activities | 3,384 | 2,917 | 5,242 | 4,065 | 30,339 | 6,301 | 40,735 | |||||||||||||||||||||
Other | 1,290 | 2,646 | 2,469 | 2,694 | 1,504 | 3,936 | 2,118 | |||||||||||||||||||||
Total operating revenues | 55,372 | 58,800 | 54,150 | 54,124 | 87,404 | 114,172 | 145,037 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Employee compensation and benefits | 42,433 | 44,355 | 37,764 | 39,358 | 49,766 | 86,788 | 88,203 | |||||||||||||||||||||
Occupancy and equipment | 3,927 | 3,871 | 3,887 | 4,025 | 3,786 | 7,798 | 7,904 | |||||||||||||||||||||
Advertising and promotion | 1,326 | 1,567 | 1,333 | 1,072 | 1,940 | 2,893 | 3,013 | |||||||||||||||||||||
Professional fees | 1,905 | 1,951 | 2,287 | 1,411 | 1,591 | 3,856 | 3,008 | |||||||||||||||||||||
Communications | 3,930 | 3,954 | 3,470 | 3,371 | 3,508 | 7,884 | 6,713 | |||||||||||||||||||||
Floor broker and clearing fees | 2,142 | 2,719 | 2,433 | 2,305 | 2,012 | 4,861 | 4,380 | |||||||||||||||||||||
Interest expense | 1,514 | 1,621 | 1,130 | 819 | 968 | 3,135 | 1,470 | |||||||||||||||||||||
Other | 2,086 | 1,918 | 1,828 | 1,604 | 1,825 | 4,004 | 3,772 | |||||||||||||||||||||
Total expenses | 59,263 | 61,956 | 54,132 | 53,965 | 65,396 | 121,219 | 118,463 | |||||||||||||||||||||
Income (loss) from Ryan Beck business segment — before income taxes | (3,891 | ) | (3,156 | ) | 18 | 159 | 22,008 | (7,047 | ) | 26,574 | ||||||||||||||||||
Provision (benefit) for income taxes | (1,814 | ) | (1,591 | ) | (654 | ) | (264 | ) | 8,977 | (3,405 | ) | 11,013 | ||||||||||||||||
Net income (loss) from Ryan Beck business segment | $ | (2,077 | ) | (1,565 | ) | 672 | 423 | 13,031 | (3,642 | ) | 15,561 | |||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Average tangible assets | $ | 238,827 | 231,145 | 220,065 | 208,883 | 184,601 | 234,986 | 178,252 | ||||||||||||||||||||
Average tangible equity | 97,195 | 99,220 | 99,456 | 99,195 | 85,735 | 98,207 | 85,495 | |||||||||||||||||||||
GAAP return on average tangible assets | % | (3.48 | ) | (2.71 | ) | 1.22 | 0.81 | 28.24 | (3.10 | ) | 17.46 | |||||||||||||||||
GAAP return on average tangible equity | (8.55 | ) | (6.31 | ) | 2.70 | 1.71 | 60.80 | (7.42 | ) | 36.40 | ||||||||||||||||||
Compensation as a percent of revenues | 76.63 | 75.43 | 69.74 | 72.72 | 56.94 | 76.02 | 60.81 | |||||||||||||||||||||
Retail brokerage to total revenues | 65.39 | 67.16 | 66.65 | 69.90 | 40.24 | 66.30 | 51.34 | |||||||||||||||||||||
Capital markets activities to total revenues | 26.17 | 23.38 | 19.11 | 17.62 | 23.33 | 24.73 | 19.12 | |||||||||||||||||||||
Investment banking revenue to total revenues | 6.11 | 4.96 | 9.68 | 7.51 | 34.71 | 5.52 | 28.09 |
Condensed Statements of Financial Condition — Unaudited
As of | |||||||||||||||||||||
(in thousands) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 3,799 | 3,396 | 5,366 | 5,388 | 4,103 | |||||||||||||||
Securities | 174,657 | 169,570 | 180,292 | 120,298 | 109,095 | ||||||||||||||||
Notes receivable — GMS | — | 3,018 | 3,360 | 3,702 | 4,043 | ||||||||||||||||
Property and equipment, net | 8,307 | 7,629 | 7,573 | 7,503 | 6,795 | ||||||||||||||||
Goodwill | 6,184 | 6,184 | 6,184 | 6,184 | 6,184 | ||||||||||||||||
Due from clearing agent | 3,963 | 2,672 | — | 15,650 | 22,091 | ||||||||||||||||
Other assets | 41,650 | 37,916 | 37,334 | 37,332 | 51,338 | ||||||||||||||||
Total assets | $ | 238,560 | 230,385 | 240,109 | 196,057 | 203,649 | |||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Securities sold not yet purchased | $ | 39,173 | 41,828 | 35,177 | 20,688 | 28,184 | |||||||||||||||
Due to clearing agent | 38,730 | 32,206 | 24,486 | — | — | ||||||||||||||||
Other liabilities | 57,609 | 51,465 | 74,100 | 69,695 | 70,214 | ||||||||||||||||
Total liabilities | 135,512 | 125,499 | 133,763 | 90,383 | 98,398 | ||||||||||||||||
Stockholder’s equity | 103,048 | 104,886 | 106,346 | 105,674 | 105,251 | ||||||||||||||||
Total liabilities and stockholder’s equity | $ | 238,560 | 230,385 | 240,109 | 196,057 | 203,649 | |||||||||||||||
11
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
Condensed Statements of Operations — Unaudited
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 6/30/2006 | 6/30/2005 | |||||||||||||||||||||
Net interest (expense) | $ | (4,798 | ) | (4,618 | ) | (4,583 | ) | (4,458 | ) | (4,157 | ) | (9,416 | ) | (8,049 | ) | |||||||||||||
Non-Interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 278 | 820 | 211 | 142 | 137 | 1,098 | 268 | |||||||||||||||||||||
Securities activities, net | 2,372 | 2,541 | 475 | 158 | 3 | 4,913 | 98 | |||||||||||||||||||||
Other | — | — | 514 | 150 | 202 | — | 508 | |||||||||||||||||||||
Non-interest income | 2,650 | 3,361 | 1,200 | 450 | 342 | 6,011 | 874 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 1,061 | 1,487 | 1,048 | 991 | 1,048 | 2,548 | 2,008 | |||||||||||||||||||||
Advertising and promotion | 195 | 94 | 123 | 77 | 164 | 289 | 221 | |||||||||||||||||||||
Professional fees | 264 | 106 | 28 | 186 | 106 | 370 | 965 | |||||||||||||||||||||
Other | 297 | 271 | 153 | 94 | 100 | 568 | 269 | |||||||||||||||||||||
Non-interest expense | 1,817 | 1,958 | 1,352 | 1,348 | 1,418 | 3,775 | 3,463 | |||||||||||||||||||||
Loss from parent company activities before income taxes | (3,965 | ) | (3,215 | ) | (4,735 | ) | (5,356 | ) | (5,233 | ) | (7,180 | ) | (10,638 | ) | ||||||||||||||
Benefit for income taxes | (1,702 | ) | (1,074 | ) | (1,673 | ) | (1,902 | ) | (1,968 | ) | (2,776 | ) | (3,860 | ) | ||||||||||||||
Net loss from parent company business segment | $ | (2,263 | ) | (2,141 | ) | (3,062 | ) | (3,454 | ) | (3,265 | ) | (4,404 | ) | (6,778 | ) | |||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | |||||||||||||||||||||
(in thousands) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash | $ | 8,796 | 4,933 | 7,342 | 12,783 | 11,218 | |||||||||||||||
Securities | 99,486 | 112,006 | 104,602 | 103,755 | 100,592 | ||||||||||||||||
Investment in subsidiaries | 657,144 | 657,765 | 651,078 | 658,454 | 647,207 | ||||||||||||||||
Investment in unconsolidated subsidiaries | 11,996 | 11,996 | 12,464 | 12,510 | 7,910 | ||||||||||||||||
Other assets | 10,716 | 7,383 | 8,210 | 7,075 | 13,905 | ||||||||||||||||
Total assets | $ | 788,138 | 794,083 | 783,696 | 794,577 | 780,832 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Subordinated debentures and notes payable | $ | 263,266 | 268,266 | 263,266 | 263,266 | 263,266 | |||||||||||||||
Other liabilities | 3,881 | 4,047 | 4,094 | 7,919 | 7,172 | ||||||||||||||||
Total liabilities | 267,147 | 272,313 | 267,360 | 271,185 | 270,438 | ||||||||||||||||
Stockholders’ equity | 520,991 | 521,770 | 516,336 | 523,392 | 510,394 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 788,138 | 794,083 | 783,696 | 794,577 | 780,832 | |||||||||||||||
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