Exhibit 99.1
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BankAtlantic Bancorp Reports
Financial Results for the Third Quarter 2006
Financial Results for the Third Quarter 2006
FORT LAUDERDALE, Florida — October 18, 2006 — BankAtlantic Bancorp, Inc. (NYSE: BBX) today announced financial results for the third quarter 2006. For the three-month period ending September 30, 2006, net income was $2.3 million, or $0.04 per diluted share, compared to $16.3 million, or $0.26 per diluted share, for the third quarter 2005. Year-to-date, net income was $17.2 million, or $0.27 per diluted share, compared to $60.7 million, or $0.95 per diluted share, for the nine months of 2005.
Alan B. Levan, Chairman and Chief Executive Officer of BankAtlantic Bancorp commented, “This quarter’s performance reflects a $4.8 million loss at Ryan Beck for the quarter (or approximately $0.08 per diluted share), slower net growth in low cost deposits at BankAtlantic (although we continue to achieve increases in new accounts and balances associated with those accounts), and several other factors discussed in this release. Despite the quarter’s results, we remain committed to our banking strategy, and are pleased with the underlying growth in new account openings and growth in fee revenue at BankAtlantic. Also discussed later in this release, Ryan Beck is undertaking a review of its operations with a view toward improving its future performance.
Commentary on Business Segment Operations:
BankAtlantic:
BankAtlantic:
“For the third quarter 2006, BankAtlantic’s net income was $9.7 million, down from $19.3 million in the comparable 2005 quarter. The third quarter 2005 included a negative provision for loan losses of $3.4 million, compared to a $271,000 provision in the current quarter, contributing significantly to the earnings decline. Additionally, the current quarter reflects relatively flat net interest income and increased expenses associated with our new store expansion program and its related marketing costs, partially offset by growth in fee income.
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“Net interest income for the third quarter 2006 was $55.1 million, or $0.8 million lower than the 2005 quarter, due to lower earning assets which more than offset an improved margin. While we continue our strategy of using the growth in low cost deposits to reduce borrowings, the slowed growth in low cost deposits resulted in a modest increase in borrowings, to a level of 33.6% of deposits and borrowings, up from 33.2% in the third quarter of 2005. Our longer term plans continue to target a reduction in this ratio toward the 10-15% range. Our ability to achieve this level will depend upon both the growth in low cost deposits and growth in core earning assets.
“The tax equivalent net interest margin improved to 4.04%, from 3.96% in the corresponding quarter of 2005, but down from 4.17% in the second quarter of 2006. (All references to net interest margin exclude loan participations sold previously recognized as secured borrowings.) Average earning assets increased approximately $210 million from the second quarter through purchases of residential loans. The spread on the purchased assets was relatively narrow, contributing to the decline in net interest margin from the second quarter to the third quarter, 2006. Additionally, overall funding costs increased, with the overall rate paid on interest bearing liabilities rising from 3.14% to 3.52% between the second and third quarters of 2006. The continued flatness of the yield curve has created a challenging environment, in which continued growth in low cost deposits will largely determine the amount of future improvement in net interest margin. With low cost deposits growing in the 15-20% range, further margin expansion is expected, but if the growth rate continues in the single digit levels we experienced this quarter, little change in the margin is likely in the near term.
“Non-interest income for the third quarter was $33.7 million, or 31% greater than the comparable 2005 period, primarily driven by growth in deposit service charges and other fees directly associated with the number of new accounts.
“Non-interest expense of $75.2 million was $18.5 million, or 33% greater than the corresponding quarter of 2005. The growth in expenses from the corresponding quarter of 2005 was largely the result of a $9.4 million, or 34% increase in personnel costs, and a $4.0 million, or 37% increase in occupancy and equipment expense, again reflecting our growth initiatives and store expansion strategy. Advertising expense increased $3.3 million, or 60% increase from the prior year’s corresponding quarter, reflecting our previously announced program of advertising associated with our new stores and our efforts to attract higher levels of low cost deposits.
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“Credit quality remained good in the third quarter, with the ratio of non-performing loans to total loans increasing only slightly from 0.12% at June 30, 2006 to 0.13% at September 30, 2006, and the ratio of non-performing assets to total loans plus other assets remaining stable at 0.17%. The Bank recorded a net recovery of $234,000 in the third quarter compared to a net recovery of $143,000 for the immediately preceding quarter. Year-to-date, the Bank has experienced net recoveries of $911,000. The Allowance for Loan Losses increased slightly from $42.0 million at June 30, 2006 to $42.5 million at September 30, 2006, and the ratio of the allowance to non-performing loans at quarter end was 674%.
“BankAtlantic opened nearly 62,000 and 197,000 new low cost deposit accounts in the third quarter of 2006 and year-to-date 2006, respectively, an increase of 21% and 27% over the number of accounts opened in the corresponding 2005 periods. Balances of these new accounts have aggregated approximately $443 million year-to-date. At quarter end, “total bank” and “same store” low cost deposit balances increased 5.5% and 5.3%, respectively, compared to the third quarter 2005, an increase of $110 million in low cost deposit balances. As noted in earlier quarters, growth in balances in new low cost accounts remains very strong, but declines in legacy balances, due to higher interest rates and other factors, have negatively impacted growth in net aggregate balances. Demand deposits declined slightly to 27.5% of total deposits from 29.2% in the second quarter 2006. Year-over-year, low cost deposit balances rose to 57.3% of total deposits, up from 54.0% in the third quarter of 2005.
“Earlier this month, BankAtlantic announced its plans to open at least four new full service stores in the greater Orlando area in 2007. The first two stores are expected to open during the first quarter, and our total expansion plan currently calls for opening more than 20 stores in the greater Orlando area over the next several years. BankAtlantic has maintained a commercial lending presence in Orlando since 2002. We have found its demographics and growth trends particularly attractive. Earlier this year, we opened a Customer Service Center (a telephone call center which serves as a backup to our main center in Fort Lauderdale), and in preparation for this new store expansion, a new sales and training center in Orlando. In addition to the announced Orlando entry, we opened three new stores in the Miami-Dade area during the third quarter.
“Also during the quarter, BankAtlantic announced the expansion of its fleet of Automated Teller Machines (ATMs) to include the world’s largest cruise ship, Royal Caribbean
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International’s “Freedom of the Seas.” BankAtlantic pioneered the concept of linking satellite communications technology with ATMs in a shipboard environment in 1995. In addition to its cruise ship-based ATM’s, BankAtlantic operates its own proprietary network of land-based ATMs throughout its footprint in Florida, including several in Native American gaming casinos, totaling collectively over 250 machines.
Ryan Beck & Co.:
“During the third quarter of 2006, Ryan Beck & Co. recorded a net loss of $4.8 million compared to a profit of $0.4 million in the comparable quarter of 2005. The loss was largely due to continued weakness in its investment banking activities, plus the costs associated with the rapid expansion which took place in late 2005 and early 2006 in its capital markets and investment banking businesses, including in the municipal finance, equity capital markets and fixed income capital markets. During the third quarter, Ryan Beck began a review of its lines of business to determine where improvements in operating performance can be attained. While Ryan Beck remains committed to all of its core business lines, it is also committed to restoring the firm to profitability, and we anticipate that Ryan Beck will make decisions in the fourth quarter which will position it to return to profitability in 2007.
“Private Client Group revenues at Ryan Beck were down for the quarter due to decreased customer activity. Ryan Beck opened five new Private Client Group offices in three states during the quarter. Retail brokerage activity, which involves providing wealth management services to the mass affluent market, had third quarter revenue of $33.8 million compared to $37.8 million for the third quarter of 2005. Total client assets have risen to $19.1 billion.
“Revenue from capital markets activities was $14.6 million compared to $9.5 million for the third quarter of 2005. This increase was principally due to the growth in capital markets staff which was initiated in late 2005.
“Investment banking activities provided third quarter revenue of $2.2 million compared to $4.1 million for the third quarter of 2005. This decrease was primarily due to decreased deal flow this quarter compared to the 2005 quarter.
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BankAtlantic Bancorp:
“As part of our on-going stock repurchase program, we repurchased 310,000 shares of our Class A Common Stock in market transactions during the third quarter. Year-to-date BankAtlantic Bancorp has purchased 560,000 shares of Class A Common Stock in market transactions. We anticipate continuing this repurchase program in the fourth quarter, and in 2007 subject to market conditions and our liquidity requirements.
“During the third quarter, BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.041 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on October 3, 2006. The third quarter’s declaration marked BankAtlantic Bancorp’s 53rd consecutive quarterly dividend payment since 1993.”
Financial Highlights:
Third Quarter, 2006 Compared to Third Quarter, 2005
Third Quarter, 2006 Compared to Third Quarter, 2005
BankAtlantic Bancorp — consolidated:
• | Net income of $2.3 million vs. $16.3 million, a decrease of 86% | ||
• | Diluted earnings per share of $0.04 vs. $0.26, a decrease of 85% | ||
• | Return on average tangible equity was 2.07% | ||
• | Book value per share was $8.60 |
BankAtlantic:
• | Business segment net income was $9.7 million vs. $19.3 million, a decrease of 50% | ||
• | Nearly 62,000 new low cost deposit accounts opened, an increase of 21% over accounts opened in the corresponding 2005 quarter, with related new balances of $134 million | ||
• | Return on average tangible assets was 0.64% | ||
• | Return on average tangible equity was 7.71% | ||
• | Tax equivalent net interest margin increased to 4.04% vs. 3.87% | ||
• | Non-interest income was $33.7 million vs. $25.7 million, an increase of 31% | ||
• | Non-interest expense grew to $75.2 million vs. $56.7 million, an increase of 33% |
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Ryan Beck & Co.:
• | Business segment loss was $4.8 million vs. income of $423,000 | ||
• | Return on average tangible equity was (20.75%) | ||
• | Total operating revenues were $49.1 million vs. $54.1 million, a decrease of 9% | ||
• | Retail brokerage revenue was $33.8 million vs. $37.8 million, a decrease of 11% | ||
• | Capital markets revenue was $14.6 million vs. $9.5 million, an increase of 53% | ||
• | Investment banking revenue was $2.2 million vs. $4.1 million, a decrease of 45% |
Year to Date 2006 Compared to Year to Date 2005
BankAtlantic Bancorp — consolidated:
• | Net income was $17.2 million vs. $60.7 million, a decrease of 72% | ||
• | Diluted earnings per share were $0.27 vs. $0.95, a decrease of 72% | ||
• | Return on average tangible equity was 5.10% |
BankAtlantic:
• | Business segment net income was $32.8 million vs. $54.9 million, a decrease of 40% | ||
• | 197,000 new low cost deposit accounts opened, an increase of 27% over accounts opened in the corresponding 2005 period, with related new balances of $443 million | ||
• | Return on average tangible assets was 0.74% | ||
• | Return on average tangible equity was 8.89% | ||
• | Tax equivalent net interest margin increased to 4.08% vs. 3.81% | ||
• | Non-interest income (excluding gains associated with debt redemption) was $94.2 million vs. $74.2 million, an increase of 27% | ||
• | Non-interest expense (excluding costs associated with debt redemption and a facilities impairment charge in 2005), grew to $213.3 million vs. $161.6 million, an increase of 32% |
Ryan Beck & Co.:
• | Business segment loss was $8.8 million vs. income of $16.0 million | ||
• | Return on average tangible equity was (12.12%) |
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• | Total operating revenues decreased to $163.2 million vs. $199.2 million, a decrease of 18% | ||
• | Retail brokerage revenue was $109.5 million vs. $112.3 million, a decrease of 2% | ||
• | Capital markets revenue was $42.8 million vs. $37.3 million, an increase of 15% | ||
• | Investment banking revenue was $8.5 million vs. $44.8 million, a decrease of 81% |
BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Thursday, October 19, 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 number7550253.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Friday, November 17, 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 is7550253.
Webcast Information:
Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visitwww.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Webcast” navigation link, or go directly tohttp://www.visualwebcaster.com/event.asp?id=35860. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Friday, November 17, 2006.
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BankAtlantic Bancorp’s third 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 third 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.
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 more than 80 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 more than 80 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 45 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 45 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
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* 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.
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
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
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
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
# # #
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 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;
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BankAtlantic’s seven-day banking initiatives, new store expansion program, Orlando 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 those new 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 ability to implement a strategy to improve its operating results and return to profitability, changes in economic or regulatory policies, the volatility of the stock market and fixed income markets, as well as its revenue mix, the success of 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. 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 Nine | ||||||||||||||||||||||||||||||||
For The Three Months Ended | Months Ended | |||||||||||||||||||||||||||||||
9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 9/30/2006 | 9/30/2005 | ||||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||||
Net income (loss) (GAAP basis) | $ | 2,338 | 8,122 | 6,712 | (1,493 | ) | 16,260 | 17,172 | 60,675 | |||||||||||||||||||||||
Operating net income ** | (note 1) | $ | 2,338 | 8,084 | 6,704 | 8,507 | 16,260 | 17,126 | 63,084 | |||||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 61,046 | 61,324 | 61,005 | 60,618 | 60,555 | 61,125 | 60,362 | |||||||||||||||||||||||||
Diluted | 62,412 | 62,820 | 62,761 | 62,898 | 63,193 | 62,664 | 63,176 | |||||||||||||||||||||||||
Key Performance Ratios (GAAP basis): | ||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.04 | 0.13 | 0.11 | (0.03 | ) | 0.27 | 0.28 | 1.01 | |||||||||||||||||||||||
Diluted earnings (loss) per share * | $ | 0.04 | 0.13 | 0.11 | (0.03 | ) | 0.26 | 0.27 | 0.95 | |||||||||||||||||||||||
Return on average tangible assets | (note 2) | % | 0.15 | 0.53 | 0.43 | (0.09 | ) | 0.98 | 0.36 | 1.26 | ||||||||||||||||||||||
Return on average tangible equity | (note 2) | % | 2.07 | 7.21 | 6.06 | (1.32 | ) | 15.05 | 5.10 | 19.64 | ||||||||||||||||||||||
Key Performance Ratios (Operating basis): | ||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.04 | 0.13 | 0.11 | 0.14 | 0.27 | 0.28 | 1.05 | ||||||||||||||||||||||||
Diluted earnings per share * | $ | 0.04 | 0.13 | 0.11 | 0.13 | 0.26 | 0.27 | 0.99 | ||||||||||||||||||||||||
Return on average tangible assets | (note 2) | % | 0.15 | 0.52 | 0.43 | 0.53 | 0.98 | 0.36 | 1.31 | |||||||||||||||||||||||
Return on average tangible equity | (note 2) | % | 2.07 | 7.18 | 6.05 | 7.52 | 15.05 | 5.09 | 20.42 | |||||||||||||||||||||||
* Diluted earnings per share calculation deducts (in thousands): | ||||||||||||||||||||||||||||||||
Subsidiaries stock options, if dilutive | $ | — | — | — | (28 | ) | (21 | ) | — | (806 | ) | |||||||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||||
Assets | $ | 6,467 | 6,272 | 6,388 | 6,463 | 6,692 | 6,376 | 6,489 | ||||||||||||||||||||||||
Tangible assets | (note 2) | $ | 6,383 | 6,188 | 6,304 | 6,378 | 6,607 | 6,292 | 6,403 | |||||||||||||||||||||||
Loans excluding certain loan participations sold | (note 3) | $ | 4,611 | 4,482 | 4,488 | 4,550 | 4,726 | 4,528 | 4,574 | |||||||||||||||||||||||
Loan participations sold | (note 3) | $ | — | — | 125 | 134 | 148 | 41 | 159 | |||||||||||||||||||||||
Investments | $ | 1,317 | 1,258 | 1,259 | 1,263 | 1,322 | 1,278 | 1,290 | ||||||||||||||||||||||||
Deposits and escrows | $ | 3,731 | 3,849 | 3,831 | 3,704 | 3,655 | 3,803 | 3,624 | ||||||||||||||||||||||||
Stockholders’ equity | $ | 526 | 526 | 522 | 533 | 516 | 525 | 495 | ||||||||||||||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 452 | 451 | 443 | 453 | 432 | 449 | 412 |
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. |
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
Consolidated Statements of Financial Condition (unaudited)
(In thousands, except share data) | 9/30/2006 | 12/31/2005 | 9/30/2005 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 134,473 | 167,032 | 140,346 | ||||||||
Short term investments | 1,481 | 3,229 | 11,802 | |||||||||
Securities available for sale (at fair value) | 663,820 | 674,544 | 702,176 | |||||||||
Securities owned (at fair value) | 186,588 | 180,292 | 120,298 | |||||||||
Investment securities and tax certificates (approximate fair value: $401,707, $364,122 and $366,456) | 398,492 | 364,444 | 366,884 | |||||||||
Loans receivable, net of allowance for loan losses of $42,517, $41,192 and $40,695 | 4,622,964 | 4,622,234 | 4,664,456 | |||||||||
Residential loans held for sale | 15,251 | 2,538 | 8,680 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 87,867 | 69,931 | 78,931 | |||||||||
Accrued interest receivable | 46,169 | 41,490 | 39,766 | |||||||||
Real estate held for development and sale | 24,420 | 21,177 | 24,493 | |||||||||
Investments and advances to unconsolidated subsidiaries | 13,359 | 12,464 | 12,510 | |||||||||
Office properties and equipment, net | 201,509 | 154,120 | 140,466 | |||||||||
Deferred tax asset, net | 29,602 | 29,615 | 25,591 | |||||||||
Goodwill | 76,674 | 76,674 | 76,674 | |||||||||
Core deposit intangible asset | 7,221 | 8,395 | 8,796 | |||||||||
Due from clearing agent | 13,579 | — | 15,650 | |||||||||
Other assets | 46,181 | 43,232 | 45,194 | |||||||||
Total assets | $ | 6,569,650 | 6,471,411 | 6,482,713 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits | ||||||||||||
Demand | $ | 1,011,531 | 1,019,949 | 1,017,071 | ||||||||
NOW | 723,211 | 755,708 | 673,803 | |||||||||
Savings | 370,169 | 313,889 | 303,348 | |||||||||
Money market | 695,591 | 846,441 | 921,585 | |||||||||
Certificates of deposit | 874,956 | 816,689 | 777,743 | |||||||||
Total deposits | 3,675,458 | 3,752,676 | 3,693,550 | |||||||||
Advances from FHLB | 1,687,062 | 1,283,532 | 1,485,649 | |||||||||
Securities sold under agreements to repurchase | 91,512 | 116,026 | 147,966 | |||||||||
Federal funds purchased | 51,435 | 139,475 | 28,042 | |||||||||
Secured borrowings | — | 138,270 | 129,891 | |||||||||
Subordinated debentures, notes and bonds payable | 30,192 | 39,092 | 40,702 | |||||||||
Junior subordinated debentures | 263,266 | 263,266 | 263,266 | |||||||||
Securities sold but not yet purchased | 68,820 | 35,177 | 20,688 | |||||||||
Due to clearing agent | 40,842 | 24,486 | — | |||||||||
Other liabilities | 136,515 | 163,075 | 149,567 | |||||||||
Total liabilities | 6,045,102 | 5,955,075 | 5,959,321 | |||||||||
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 56,114,600, 55,884,089 and 55,862,486 shares | 562 | 559 | 559 | |||||||||
Class B common stock, $.01 par value, authorized 45,000,000 shares; issued and outstanding 4,876,124, 4,876,124 and 4,876,124 shares | 49 | 49 | 49 | |||||||||
Additional paid-in capital | 258,887 | 261,720 | 261,587 | |||||||||
Unearned compensation — restricted stock grants | — | (936 | ) | (1,021 | ) | |||||||
Retained earnings | 271,281 | 261,279 | 265,082 | |||||||||
Total stockholders’ equity before accumulated other comprehensive loss | 530,779 | 522,671 | 526,256 | |||||||||
Accumulated other comprehensive loss | (6,231 | ) | (6,335 | ) | (2,864 | ) | ||||||
Total stockholders’ equity | 524,548 | 516,336 | 523,392 | |||||||||
Total liabilities and stockholders’ equity | $ | 6,569,650 | 6,471,411 | 6,482,713 | ||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For the Nine | |||||||||||||||||||||||||||||||||
For The Three Months Ended | Months Ended | ||||||||||||||||||||||||||||||||
(in thousands) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 9/30/2006 | 9/30/2005 | ||||||||||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 80,790 | 75,765 | 75,386 | 75,404 | 75,747 | 231,941 | 217,846 | |||||||||||||||||||||||||
Interest on securities available for sale | 4,483 | 4,314 | 4,305 | 4,379 | 4,741 | 13,102 | 15,294 | ||||||||||||||||||||||||||
Interest on tax exempt securities | 4,183 | 4,506 | 4,229 | 4,027 | 3,963 | 12,918 | 11,332 | ||||||||||||||||||||||||||
Interest and dividends on investments and securities owned | 9,516 | 7,743 | 8,191 | 8,777 | 8,478 | 25,450 | 23,346 | ||||||||||||||||||||||||||
Total interest income | 98,972 | 92,328 | 92,111 | 92,587 | 92,929 | 283,411 | 267,818 | ||||||||||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||||||||||||
Interest on deposits | 15,095 | 13,852 | 12,754 | 11,736 | 10,519 | 41,701 | 28,348 | ||||||||||||||||||||||||||
Interest on advances from FHLB | 18,509 | 13,007 | 14,139 | 15,565 | 17,332 | 45,655 | 46,610 | ||||||||||||||||||||||||||
Interest on short-term borrowed funds | 5,078 | 4,931 | 2,575 | 2,746 | 2,108 | 12,584 | 6,853 | ||||||||||||||||||||||||||
Interest on secured borrowings | — | — | 2,401 | 2,862 | 2,637 | 2,401 | 7,282 | ||||||||||||||||||||||||||
Interest on long-term debt | 7,957 | 7,891 | 7,584 | 6,825 | 6,392 | 23,432 | 18,380 | ||||||||||||||||||||||||||
Capitalized interest on real estate development | (75 | ) | (289 | ) | (480 | ) | (513 | ) | (477 | ) | (844 | ) | (1,366 | ) | |||||||||||||||||||
Total interest expense | 46,564 | 39,392 | 38,973 | 39,221 | 38,511 | 124,929 | 106,107 | ||||||||||||||||||||||||||
NET INTEREST INCOME | 52,408 | 52,936 | 53,138 | 53,366 | 54,418 | 158,482 | 161,711 | ||||||||||||||||||||||||||
Provision (recovery from) loan losses | 271 | (20 | ) | 163 | (109 | ) | (3,410 | ) | 414 | (6,506 | ) | ||||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 52,137 | 52,956 | 52,975 | 53,475 | 57,828 | 158,068 | 168,217 | ||||||||||||||||||||||||||
NON-INTEREST INCOME: | |||||||||||||||||||||||||||||||||
Service charges on deposits | 24,008 | 21,274 | 19,099 | 17,808 | 16,415 | 64,381 | 44,148 | ||||||||||||||||||||||||||
Other service charges and fees | 6,779 | 7,353 | 6,222 | 6,436 | 5,824 | 20,354 | 16,911 | ||||||||||||||||||||||||||
Broker/dealer revenue | 45,205 | 51,381 | 54,562 | 49,831 | 50,368 | 151,148 | 188,969 | ||||||||||||||||||||||||||
Securities activities, net | 2,243 | 2,830 | 2,541 | 474 | 181 | 7,614 | 373 | ||||||||||||||||||||||||||
Gain on sales of loans | 175 | 200 | 94 | 221 | 295 | 469 | 521 | ||||||||||||||||||||||||||
Gain associated with debt redemption | — | 1,092 | 436 | — | — | 1,528 | — | ||||||||||||||||||||||||||
Income (loss) from real estate operations | — | 114 | (1,096 | ) | (558 | ) | 1,142 | (982 | ) | 5,038 | |||||||||||||||||||||||
Income from unconsolidated subsidiaries | 266 | 278 | 820 | 211 | 142 | 1,364 | 410 | ||||||||||||||||||||||||||
Gain (loss) on the sale of office properties and equipment, net | (3 | ) | 1,806 | (28 | ) | (16 | ) | — | 1,775 | 293 | |||||||||||||||||||||||
Other | 2,740 | 2,676 | 2,272 | 2,315 | 2,137 | 7,688 | 7,714 | ||||||||||||||||||||||||||
Total non-interest income | 81,413 | 89,004 | 84,922 | 76,722 | 76,504 | 255,339 | 264,377 | ||||||||||||||||||||||||||
NON-INTEREST EXPENSE: | |||||||||||||||||||||||||||||||||
Employee compensation and benefits | 79,573 | 80,011 | 80,200 | 70,257 | 68,455 | 239,784 | 212,641 | ||||||||||||||||||||||||||
Occupancy and equipment | 19,181 | 17,516 | 16,247 | 15,394 | 14,853 | 52,944 | 42,043 | ||||||||||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | — | — | 3,706 | ||||||||||||||||||||||||||
Advertising and promotion | 10,383 | 8,644 | 9,957 | 11,701 | 6,667 | 28,984 | 21,034 | ||||||||||||||||||||||||||
Professional fees | 5,028 | 4,189 | 4,250 | 4,692 | 4,207 | 13,467 | 12,604 | ||||||||||||||||||||||||||
Communications | 3,472 | 3,930 | 3,954 | 3,470 | 3,371 | 11,356 | 10,084 | ||||||||||||||||||||||||||
Floor broker and clearing fees | 1,823 | 2,142 | 2,719 | 2,433 | 2,305 | 6,684 | 6,685 | ||||||||||||||||||||||||||
Costs associated with debt redemption | — | 1,034 | 423 | — | — | 1,457 | — | ||||||||||||||||||||||||||
Check losses | 2,855 | 1,875 | 1,246 | 2,627 | 1,434 | 5,976 | 2,549 | ||||||||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | — | 10,000 | — | — | — | ||||||||||||||||||||||||||
Other | 10,068 | 12,422 | 10,672 | 9,425 | 9,892 | 33,162 | 28,766 | ||||||||||||||||||||||||||
Total non-interest expense | 132,383 | 131,763 | 129,668 | 129,999 | 111,184 | 393,814 | 340,112 | ||||||||||||||||||||||||||
Income before income taxes | 1,167 | 10,197 | 8,229 | 198 | 23,148 | 19,593 | 92,482 | ||||||||||||||||||||||||||
(Benefit) provision for income taxes | (1,171 | ) | 2,075 | 1,517 | 1,691 | 6,888 | 2,421 | 31,807 | |||||||||||||||||||||||||
GAAP net income (loss) | $ | 2,338 | 8,122 | 6,712 | (1,493 | ) | 16,260 | 17,172 | 60,675 | ||||||||||||||||||||||||
Reconciliation of Operating and GAAP Net Income | |||||||||||||||||||||||||||||||||
GAAP net income (loss) | $ | 2,338 | 8,122 | 6,712 | (1,493 | ) | 16,260 | 17,172 | 60,675 | ||||||||||||||||||||||||
Gain associated with debt redemption | — | (710 | ) | (283 | ) | — | — | (993 | ) | — | |||||||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | — | — | 2,409 | ||||||||||||||||||||||||||
Costs associated with debt redemption | — | 672 | 275 | — | — | 947 | — | ||||||||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | — | 10,000 | — | — | — | ||||||||||||||||||||||||||
Operating net income | (note 1) | $ | 2,338 | 8,084 | 6,704 | 8,507 | 16,260 | 17,126 | 63,084 | ||||||||||||||||||||||||
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) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | |||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 2,130,077 | 2,047,430 | 2,043,310 | 2,115,899 | 2,245,067 | ||||||||||||||||||||||||||||||
Commercial real estate excluding certain loan participations sold | (note 3) | 1,498,192 | 1,483,299 | 1,561,236 | 1,576,131 | 1,643,570 | ||||||||||||||||||||||||||||||
Loan participations sold | (note 3) | — | — | 125,293 | 134,080 | 147,633 | ||||||||||||||||||||||||||||||
Consumer | 563,002 | 546,624 | 539,937 | 538,321 | 527,190 | |||||||||||||||||||||||||||||||
Lease financing | 76 | 172 | 467 | 1,433 | 2,768 | |||||||||||||||||||||||||||||||
Commercial business | 152,720 | 148,604 | 102,066 | 91,979 | 90,578 | |||||||||||||||||||||||||||||||
Small business | 267,263 | 255,701 | 241,103 | 226,153 | 216,931 | |||||||||||||||||||||||||||||||
Total Loans | 4,611,330 | 4,481,830 | 4,613,412 | 4,683,996 | 4,873,737 | |||||||||||||||||||||||||||||||
Investments — taxable | 918,159 | 853,224 | 857,866 | 867,625 | 924,911 | |||||||||||||||||||||||||||||||
Investments — tax exempt | 399,091 | 404,644 | 401,541 | 394,935 | 396,908 | |||||||||||||||||||||||||||||||
Total interest earning assets | 5,928,580 | 5,739,698 | 5,872,819 | 5,946,556 | 6,195,556 | |||||||||||||||||||||||||||||||
Goodwill and core deposit intangibles | 84,098 | 84,486 | 84,878 | 85,277 | 85,679 | |||||||||||||||||||||||||||||||
Other non-interest earning assets | 454,220 | 448,191 | 430,746 | 431,215 | 411,116 | |||||||||||||||||||||||||||||||
Total assets | $ | 6,466,898 | 6,272,375 | 6,388,443 | 6,463,048 | 6,692,351 | ||||||||||||||||||||||||||||||
Tangible assets | (note 2) | $ | 6,382,800 | 6,187,889 | 6,303,565 | 6,377,771 | 6,606,672 | |||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 1,043,497 | 1,109,005 | 1,065,510 | 1,017,467 | 1,000,219 | ||||||||||||||||||||||||||||||
Savings | 367,829 | 364,946 | 331,117 | 309,007 | 303,268 | |||||||||||||||||||||||||||||||
NOW | 727,517 | 764,738 | 760,419 | 692,128 | 666,567 | |||||||||||||||||||||||||||||||
Money market | 733,058 | 765,805 | 829,700 | 887,858 | 904,382 | |||||||||||||||||||||||||||||||
Certificates of deposit | 858,688 | 844,318 | 843,866 | 797,187 | 781,044 | |||||||||||||||||||||||||||||||
Total deposits | 3,730,589 | 3,848,812 | 3,830,612 | 3,703,647 | 3,655,480 | |||||||||||||||||||||||||||||||
Short-term borrowed funds | 374,913 | 396,870 | 239,144 | 276,333 | 251,242 | |||||||||||||||||||||||||||||||
FHLB advances | 1,354,944 | 1,010,458 | 1,164,675 | 1,345,033 | 1,659,411 | |||||||||||||||||||||||||||||||
Secured borrowings | (note 3) | — | — | 125,293 | 134,080 | 147,633 | ||||||||||||||||||||||||||||||
Long-term debt | 300,549 | 303,052 | 301,529 | 301,655 | 298,887 | |||||||||||||||||||||||||||||||
Total borrowings | 2,030,406 | 1,710,380 | 1,830,641 | 2,057,101 | 2,357,173 | |||||||||||||||||||||||||||||||
Other liabilities | 180,093 | 186,741 | 204,693 | 169,156 | 163,581 | |||||||||||||||||||||||||||||||
Total liabilities | 5,941,088 | 5,745,933 | 5,865,946 | 5,929,904 | 6,176,234 | |||||||||||||||||||||||||||||||
Stockholders’ equity | 525,810 | 526,442 | 522,497 | 533,144 | 516,117 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,466,898 | 6,272,375 | 6,388,443 | 6,463,048 | 6,692,351 | ||||||||||||||||||||||||||||||
Other comprehensive (loss) in stockholders’ equity | (10,270 | ) | (8,700 | ) | (5,350 | ) | (4,810 | ) | (1,612 | ) | ||||||||||||||||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 451,982 | 450,656 | 442,969 | 452,677 | 432,050 | |||||||||||||||||||||||||||||
Period End | ||||||||||||||||||||||||||||||||||||
Total loans, net excluding certain loan participations sold | $ | 4,638,215 | 4,484,764 | 4,412,989 | 4,486,502 | 4,543,245 | ||||||||||||||||||||||||||||||
Loan participations sold | (note 3) | — | — | 111,754 | 138,270 | 129,891 | ||||||||||||||||||||||||||||||
Total assets | 6,569,650 | 6,402,357 | 6,357,602 | 6,471,411 | 6,482,713 | |||||||||||||||||||||||||||||||
Total stockholders’ equity | 524,548 | 520,991 | 521,770 | 516,336 | 523,392 | |||||||||||||||||||||||||||||||
Common shares outstanding | 60,990,724 | 61,215,046 | 61,293,692 | 60,760,213 | 60,738,610 | |||||||||||||||||||||||||||||||
Cash dividends | 2,506,136 | 2,330,675 | 2,334,112 | 2,308,888 | 2,308,067 | |||||||||||||||||||||||||||||||
Common stock cash dividends per share | 0.041 | 0.038 | 0.038 | 0.038 | 0.038 | |||||||||||||||||||||||||||||||
Closing stock price | 14.22 | 14.84 | 14.39 | 14.00 | 16.99 | |||||||||||||||||||||||||||||||
High stock price for the quarter | 14.97 | 15.99 | 15.23 | 17.19 | 19.33 | |||||||||||||||||||||||||||||||
Low stock price for the quarter | 12.96 | 13.86 | 12.67 | 13.29 | 15.64 | |||||||||||||||||||||||||||||||
Book value per share | 8.60 | 8.51 | 8.51 | 8.50 | 8.62 |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(In thousands) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 9/30/2006 | 9/30/2005 | |||||||||||||||||||||
Net interest income | $ | 55,107 | 55,257 | 55,138 | 54,760 | 55,939 | 165,502 | 166,315 | ||||||||||||||||||||
Provision (recovery from) loan losses | 271 | (20 | ) | 163 | (109 | ) | (3,410 | ) | 414 | (6,506 | ) | |||||||||||||||||
Net Interest income after provision for loan losses | 54,836 | 55,277 | 54,975 | 54,869 | 59,349 | 165,088 | 172,821 | |||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 24,008 | 21,274 | 19,099 | 17,808 | 16,415 | 64,381 | 44,148 | |||||||||||||||||||||
Other service charges and fees | 6,779 | 7,353 | 6,222 | 6,436 | 5,824 | 20,354 | 16,911 | |||||||||||||||||||||
Securities activities, net | — | 458 | (1 | ) | — | 23 | 457 | 117 | ||||||||||||||||||||
Gain on sales of loans | 175 | 200 | 94 | 221 | 295 | 469 | 521 | |||||||||||||||||||||
Gain associated with debt redemption | — | 1,092 | 436 | — | — | 1,528 | — | |||||||||||||||||||||
Income (loss) from real estate operations | — | 114 | (1,096 | ) | (558 | ) | 1,142 | (982 | ) | 5,038 | ||||||||||||||||||
Gain (loss) on the sale of office properties, net | (3 | ) | 1,806 | (28 | ) | (16 | ) | — | 1,775 | 293 | ||||||||||||||||||
Other non-interest income | 2,752 | 2,663 | 2,282 | 1,944 | 2,019 | 7,697 | 7,196 | |||||||||||||||||||||
Total non-interest income | 33,711 | 34,960 | 27,008 | 25,835 | 25,718 | 95,679 | 74,224 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 37,524 | 36,517 | 34,357 | 31,445 | 28,106 | 108,398 | 82,081 | |||||||||||||||||||||
Occupancy and equipment | 14,809 | 13,584 | 12,372 | 11,503 | 10,826 | 40,765 | 30,108 | |||||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | — | — | 3,706 | |||||||||||||||||||||
Advertising | 8,855 | 7,123 | 8,296 | 10,244 | 5,518 | 24,274 | 16,651 | |||||||||||||||||||||
Professional fees | 1,928 | 2,020 | 2,193 | 2,521 | 2,641 | 6,141 | 7,174 | |||||||||||||||||||||
Costs associated with debt redemption | — | 1,034 | 423 | — | — | 1,457 | — | |||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | — | 10,000 | — | — | — | |||||||||||||||||||||
Other | 12,098 | 11,906 | 9,742 | 10,076 | 9,631 | 33,746 | 25,582 | |||||||||||||||||||||
Total non-interest expense | 75,214 | 72,184 | 67,383 | 75,789 | 56,722 | 214,781 | 165,302 | |||||||||||||||||||||
Income from bank operations business segment before income taxes | 13,333 | 18,053 | 14,600 | 4,915 | 28,345 | 45,986 | 81,743 | |||||||||||||||||||||
Provision for income taxes | 3,682 | 5,301 | 4,182 | 4,018 | 9,054 | 13,165 | 26,820 | |||||||||||||||||||||
Net income from bank operations business segment | $ | 9,651 | 12,752 | 10,418 | 897 | 19,291 | 32,821 | 54,923 | ||||||||||||||||||||
Reconciliation of Operating and business segment net income | ||||||||||||||||||||||||||||
Business segment income | $ | 9,651 | 12,752 | 10,418 | 897 | 19,291 | 32,821 | 54,923 | ||||||||||||||||||||
Gain associated with debt redemption | — | (710 | ) | (283 | ) | — | — | (993 | ) | — | ||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | — | — | 2,409 | |||||||||||||||||||||
Costs associated with debt redemption | — | 672 | 275 | — | — | 947 | — | |||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | — | 10,000 | — | — | — | |||||||||||||||||||||
Operating net income | $ | 9,651 | 12,714 | 10,410 | 10,897 | 19,291 | 32,775 | 57,332 | ||||||||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands except percentages | ||||||||||||||||||||||||||||
and per share data) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 9/30/2006 | 9/30/2005 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
GAAP tax equivalent: | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,669,550 | 5,460,276 | 5,591,286 | 5,709,807 | 5,967,885 | 5,573,990 | 5,958,545 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,457,382 | 4,189,321 | 4,338,215 | 4,485,417 | 4,754,244 | 4,328,741 | 4,783,203 | ||||||||||||||||||||
Average tangible assets | $ | 6,041,302 | 5,827,060 | 5,947,154 | 6,053,697 | 6,280,162 | 5,938,841 | 6,256,418 | ||||||||||||||||||||
Average tangible equity | $ | 500,655 | 491,459 | 484,162 | 495,614 | 473,387 | 492,159 | 462,048 | ||||||||||||||||||||
Borrowings to deposits and borrowings | % | 33.63 | 29.35 | 26.31 | 31.45 | 33.24 | 33.63 | 33.24 | ||||||||||||||||||||
Operating (2): | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,669,550 | 5,460,276 | 5,465,993 | 5,575,727 | 5,820,252 | 5,532,684 | 5,799,958 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,457,382 | 4,189,321 | 4,212,922 | 4,351,337 | 4,606,611 | 4,287,435 | 4,624,616 | ||||||||||||||||||||
Average tangible assets | $ | 6,041,302 | 5,827,060 | �� | 5,821,861 | 5,919,617 | 6,132,529 | 5,897,535 | 6,097,831 | |||||||||||||||||||
Average tangible equity | $ | 500,654 | 491,459 | 484,162 | 495,614 | 473,387 | 492,152 | 462,048 | ||||||||||||||||||||
GAAP tax equivalent: | ||||||||||||||||||||||||||||
Yield on earning assets | % | 6.81 | 6.58 | 6.39 | 6.29 | 6.08 | 6.60 | 5.85 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 3.52 | 3.14 | 3.06 | 2.97 | 2.78 | 3.24 | 2.54 | ||||||||||||||||||||
Interest spread | % | 3.29 | 3.44 | 3.33 | 3.32 | 3.30 | 3.35 | 3.31 | ||||||||||||||||||||
Net interest margin | % | 4.04 | 4.17 | 4.02 | 3.96 | 3.87 | 4.08 | 3.81 | ||||||||||||||||||||
Operating tax equivalent (2): | ||||||||||||||||||||||||||||
Yield on earning assets | % | 6.81 | 6.58 | 6.36 | 6.24 | 6.05 | 6.59 | 5.84 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 3.52 | 3.14 | 2.92 | 2.80 | 2.64 | 3.20 | 2.42 | ||||||||||||||||||||
Interest spread | % | 3.29 | 3.44 | 3.44 | 3.44 | 3.41 | 3.39 | 3.42 | ||||||||||||||||||||
Net interest margin | % | 4.04 | 4.17 | 4.11 | 4.05 | 3.96 | 4.11 | 3.91 | ||||||||||||||||||||
GAAP: | ||||||||||||||||||||||||||||
Efficiency ratio | % | 84.68 | 80.01 | 82.03 | 94.04 | 69.46 | 82.23 | 68.72 | ||||||||||||||||||||
Return on average tangible assets | % | 0.64 | 0.88 | 0.70 | 0.06 | 1.23 | 0.74 | 1.17 | ||||||||||||||||||||
Return on average tangible equity | % | 7.71 | 10.38 | 8.61 | 0.72 | 16.30 | 8.89 | 15.85 | ||||||||||||||||||||
Operating (1): | ||||||||||||||||||||||||||||
Efficiency ratio | % | 84.68 | 79.83 | 81.95 | 81.63 | 69.46 | 81.68 | 67.18 | ||||||||||||||||||||
Return on average tangible assets | % | 0.64 | 0.87 | 0.72 | 0.74 | 1.26 | 0.74 | 1.25 | ||||||||||||||||||||
Return on average tangible equity | % | 7.71 | 10.35 | 8.60 | 8.79 | 16.30 | 8.88 | 16.54 | ||||||||||||||||||||
Earning assets repricing: | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 52 | 52 | 55 | 54 | 50 | ||||||||||||||||||||||
Percent of earning assets that have variable rates | % | 48 | 48 | 45 | 46 | 50 | ||||||||||||||||||||||
One year Gap | % | (4 | ) | (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) | Adjusted to exclude loan participations sold accounted for as secured borrowings. |
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(In thousands) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,638,215 | 4,484,764 | 4,409,971 | 4,483,142 | 4,539,544 | ||||||||||||||
Loan participations sold (1) | — | — | 111,754 | 138,270 | 129,891 | |||||||||||||||
Held to maturity securities | 479,859 | 470,994 | 396,251 | 427,575 | 439,015 | |||||||||||||||
Available for sale securities | 568,699 | 569,618 | 567,664 | 578,913 | 608,375 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 7,221 | 7,608 | 7,995 | 8,395 | 8,796 | |||||||||||||||
Other assets | 417,982 | 444,923 | 435,976 | 402,546 | 369,994 | |||||||||||||||
Total assets | $ | 6,182,465 | 6,048,396 | 6,000,100 | 6,109,330 | 6,166,104 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 1,011,531 | 1,119,608 | 1,152,365 | 1,019,992 | 1,017,866 | ||||||||||||||
NOW | 723,211 | 747,437 | 790,225 | 755,708 | 673,803 | |||||||||||||||
Savings | 370,169 | 372,212 | 351,839 | 313,889 | 303,348 | |||||||||||||||
Total low cost deposits | 2,104,911 | 2,239,257 | 2,294,429 | 2,089,589 | 1,995,017 | |||||||||||||||
Money market | 695,591 | 740,192 | 806,871 | 846,441 | 921,585 | |||||||||||||||
Certificate of deposits | 874,956 | 855,561 | 859,470 | 816,689 | 777,743 | |||||||||||||||
Total deposits | 3,675,458 | 3,835,010 | 3,960,770 | 3,752,719 | 3,694,345 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,687,062 | 1,127,065 | 1,085,914 | 1,283,532 | 1,485,649 | |||||||||||||||
Short term borrowings | 144,722 | 428,942 | 179,850 | 261,154 | 187,513 | |||||||||||||||
Secured borrowings (1) | — | — | 111,754 | 138,270 | 129,891 | |||||||||||||||
Long term debt | 30,192 | 37,378 | 36,832 | 39,092 | 36,702 | |||||||||||||||
Other liabilities | 78,853 | 65,907 | 72,102 | 89,834 | 79,228 | |||||||||||||||
Total liabilities | 5,616,287 | 5,494,302 | 5,447,222 | 5,564,601 | 5,613,328 | |||||||||||||||
Stockholder’s equity | 566,178 | 554,094 | 552,878 | 544,729 | 552,776 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,182,465 | 6,048,396 | 6,000,100 | 6,109,330 | 6,166,104 | ||||||||||||||
(1) | Amount represents loan participations sold accounted for as secured borrowings. |
Bank Operations Business Segment
Average Balance Sheet — Yield/Rate Analysis
Average Balance Sheet — Yield/Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
September 30, 2006 | September 30, 2005 | |||||||||||||||||||||||
(in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,130,077 | 27,891 | 5.24 | % | $ | 2,245,067 | 27,676 | 4.93 | % | ||||||||||||||
Commercial real estate | 1,498,192 | 32,979 | 8.81 | 1,639,530 | 30,839 | 7.52 | ||||||||||||||||||
Loan participations sold | — | — | — | 147,633 | 2,637 | 7.09 | ||||||||||||||||||
Consumer | 563,001 | 11,024 | 7.83 | 527,189 | 8,433 | 6.40 | ||||||||||||||||||
Lease financing | 76 | 3 | 15.79 | 2,768 | 66 | 9.54 | ||||||||||||||||||
Commercial business | 152,720 | 3,405 | 8.92 | 90,578 | 1,828 | 8.07 | ||||||||||||||||||
Small business | 267,263 | 5,489 | 8.22 | 216,931 | 4,268 | 7.87 | ||||||||||||||||||
Total loans | 4,611,329 | 80,791 | 7.01 | 4,869,696 | 75,747 | 6.22 | ||||||||||||||||||
Investments — tax exempt | 397,436 | 5,806 | (1) | 5.84 | 386,097 | 5,617 | (1) | 5.82 | ||||||||||||||||
Investments — taxable | 660,785 | 9,993 | 6.05 | 712,092 | 9,348 | 5.25 | ||||||||||||||||||
Total interest earning assets | 5,669,550 | 96,590 | 6.81 | % | 5,967,885 | 90,712 | 6.08 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 77,913 | 79,494 | ||||||||||||||||||||||
Other non-interest earning assets | 371,752 | 312,261 | ||||||||||||||||||||||
Total Assets | $ | 6,119,215 | $ | 6,359,640 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 367,829 | 721 | 0.78 | % | $ | 303,268 | 229 | 0.30 | % | ||||||||||||||
NOW | 727,517 | 1,149 | 0.63 | 666,567 | 773 | 0.46 | ||||||||||||||||||
Money market | 733,058 | 4,019 | 2.18 | 904,382 | 3,729 | 1.64 | ||||||||||||||||||
Certificate of deposit | 858,688 | 9,206 | 4.25 | 781,044 | 5,788 | 2.94 | ||||||||||||||||||
Total interest bearing deposits | 2,687,092 | 15,095 | 2.23 | 2,655,261 | 10,519 | 1.57 | ||||||||||||||||||
Short-term borrowed funds | 378,063 | 5,117 | 5.37 | 256,492 | 2,151 | 3.33 | ||||||||||||||||||
Advances from FHLB | 1,354,944 | 18,509 | 5.42 | 1,659,411 | 17,332 | 4.14 | ||||||||||||||||||
Secured borrowings | — | — | — | 147,633 | 2,637 | 7.09 | ||||||||||||||||||
Long-term debt | 37,283 | 805 | 8.57 | 35,447 | 645 | 7.22 | ||||||||||||||||||
Total interest bearing liabilities | 4,457,382 | 39,526 | 3.52 | 4,754,244 | 33,284 | 2.78 | ||||||||||||||||||
Demand deposits | 1,043,574 | 1,000,694 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 53,567 | 56,659 | ||||||||||||||||||||||
Total Liabilities | 5,554,523 | 5,811,597 | ||||||||||||||||||||||
Stockholder’s equity | 564,692 | 548,043 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,119,215 | $ | 6,359,640 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | $ | 57,064 | 3.29 | % | $ | 57,428 | 3.30 | % | ||||||||||||||||
Tax equivalent adjustment | (2,032 | ) | (1,966 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | 75 | 477 | ||||||||||||||||||||||
Net interest income | 55,107 | 55,939 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.81 | % | 6.08 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.77 | 2.21 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 4.04 | % | 3.87 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 4.04 | % | 3.96 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Nine Months Ended | ||||||||||||||||||||||||
September 30, 2006 | September 30, 2005 | |||||||||||||||||||||||
(in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,073,923 | 79,890 | 5.14 | % | $ | 2,198,170 | 80,782 | 4.90 | % | ||||||||||||||
Commercial real estate | 1,511,983 | 94,775 | 8.36 | 1,708,272 | 89,460 | 6.98 | ||||||||||||||||||
Loan participations sold | 41,306 | 2,401 | 7.75 | 158,587 | 7,281 | 6.12 | ||||||||||||||||||
Consumer | 549,939 | 30,676 | 7.44 | 506,902 | 22,376 | 5.89 | ||||||||||||||||||
Lease financing | 237 | 23 | 12.94 | 4,561 | 365 | 10.67 | ||||||||||||||||||
Commercial business | 135,035 | 8,914 | 8.80 | 90,199 | 5,047 | 7.46 | ||||||||||||||||||
Small business | 254,325 | 15,262 | 8.00 | 206,389 | 11,978 | 7.74 | ||||||||||||||||||
Total loans | 4,566,748 | 231,941 | 6.77 | 4,873,080 | 217,289 | 5.95 | ||||||||||||||||||
Investments — tax exempt | 396,348 | 17,355 | (1) | 5.84 | 362,988 | 15,775 | (1) | 5.79 | ||||||||||||||||
Investments — taxable | 610,894 | 26,422 | 5.77 | 722,477 | 28,423 | 5.25 | ||||||||||||||||||
Total interest earning assets | 5,573,990 | 275,718 | 6.60 | % | 5,958,545 | 261,487 | 5.85 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 78,300 | 79,923 | ||||||||||||||||||||||
Other non-interest earning assets | 364,851 | 297,873 | ||||||||||||||||||||||
Total Assets | $ | 6,017,141 | $ | 6,336,341 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 354,765 | 1,557 | 0.59 | % | $ | 295,450 | 628 | 0.28 | % | ||||||||||||||
NOW | 750,771 | 3,106 | 0.55 | 672,224 | 2,097 | 0.42 | ||||||||||||||||||
Money market | 775,833 | 11,977 | 2.06 | 910,697 | 9,727 | 1.43 | ||||||||||||||||||
Certificate of deposit | 849,011 | 25,061 | 3.95 | 780,258 | 15,896 | 2.72 | ||||||||||||||||||
Total deposits | 2,730,380 | 41,701 | 2.04 | 2,658,629 | 28,348 | 1.43 | ||||||||||||||||||
Short-term borrowed funds | 342,413 | 12,760 | 4.98 | 325,670 | 6,955 | 2.86 | ||||||||||||||||||
Advances from FHLB | 1,177,389 | 45,655 | 5.18 | 1,604,169 | 46,610 | 3.88 | ||||||||||||||||||
Secured borrowings | 41,306 | 2,401 | 7.75 | 158,587 | 7,281 | 5.89 | ||||||||||||||||||
Long-term debt | 37,253 | 2,469 | 8.86 | 36,148 | 1,823 | 6.74 | ||||||||||||||||||
Total interest bearing liabilities | 4,328,741 | 104,986 | 3.24 | 4,783,203 | 91,017 | 2.54 | ||||||||||||||||||
Demand deposits | 1,072,867 | 965,900 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 58,383 | 49,823 | ||||||||||||||||||||||
Total Liabilities | 5,459,991 | 5,798,926 | ||||||||||||||||||||||
Stockholder’s equity | 557,150 | 537,415 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,017,141 | $ | 6,336,341 | ||||||||||||||||||||
Net interest income/net interest spread | $ | 170,732 | 3.35 | % | $ | 170,470 | 3.31 | % | ||||||||||||||||
Tax equivalent adjustment | (6,074 | ) | (5,521 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | 844 | 1,366 | ||||||||||||||||||||||
Net interest income | 165,502 | 166,315 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.60 | % | 5.85 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.52 | 2.04 | ||||||||||||||||||||||
Net interest margin | 4.08 | % | 3.81 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 4.11 | % | 3.91 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
(in thousands) | For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 9/30/2006 | 9/30/2005 | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 42,012 | 41,889 | 41,192 | 40,695 | 43,650 | 41,192 | 46,010 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (111 | ) | (60 | ) | (68 | ) | (8 | ) | (191 | ) | (239 | ) | (445 | ) | ||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial business | — | (22 | ) | (12 | ) | (119 | ) | (222 | ) | (34 | ) | (1,019 | ) | |||||||||||||||
Consumer | (232 | ) | (39 | ) | (201 | ) | (91 | ) | (99 | ) | (472 | ) | (248 | ) | ||||||||||||||
Small business | (93 | ) | (229 | ) | (85 | ) | (102 | ) | (68 | ) | (407 | ) | (662 | ) | ||||||||||||||
Total charge-offs | (436 | ) | (350 | ) | (366 | ) | (320 | ) | (580 | ) | (1,152 | ) | (2,374 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | 170 | — | 178 | 9 | 55 | 348 | 56 | |||||||||||||||||||||
Commercial real estate | 10 | — | 9 | — | — | 19 | — | |||||||||||||||||||||
Commercial business | 54 | 116 | 111 | 306 | 355 | 281 | 816 | |||||||||||||||||||||
Consumer | 163 | 98 | 199 | 238 | 159 | 460 | 456 | |||||||||||||||||||||
Small business | 193 | 119 | 140 | 205 | 289 | 452 | 694 | |||||||||||||||||||||
Other | 80 | 160 | 263 | 168 | 177 | 503 | 1,543 | |||||||||||||||||||||
Total recoveries | 670 | 493 | 900 | 926 | 1,035 | 2,063 | 3,565 | |||||||||||||||||||||
Net recoveries | 234 | 143 | 534 | 606 | 455 | 911 | 1,191 | |||||||||||||||||||||
Provision (recovery from) loan losses | 271 | (20 | ) | 163 | (109 | ) | (3,410 | ) | 414 | (6,506 | ) | |||||||||||||||||
Ending balance | $ | 42,517 | 42,012 | 41,889 | 41,192 | 40,695 | 42,517 | 40,695 | ||||||||||||||||||||
Annualized net recoveries to average loans | % | (0.02 | ) | (0.01 | ) | (0.05 | ) | (0.05 | ) | (0.04 | ) | (0.04 | ) | (0.05 | ) | |||||||||||||
As of | |||||||||||||||||||||
9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | |||||||||||||||||
Credit Quality | |||||||||||||||||||||
Nonaccrual loans | $ | 6,306 | 5,349 | 6,101 | 6,801 | 6,883 | |||||||||||||||
Nonaccrual tax certificates | 760 | 857 | 685 | 388 | 385 | ||||||||||||||||
Real estate owned | 1,439 | 1,907 | 1,647 | 967 | 912 | ||||||||||||||||
Other repossessed assets | — | — | — | — | 46 | ||||||||||||||||
Total nonperforming assets | $ | 8,505 | 8,113 | 8,433 | 8,156 | 8,226 | |||||||||||||||
Nonperforming assets to total loans and other assets | % | 0.17 | 0.17 | 0.18 | 0.17 | 0.17 | |||||||||||||||
Allowance for loan losses to total loans | % | 0.91 | 0.93 | 0.94 | 0.91 | 0.89 | |||||||||||||||
Provision (recovery) to average loans | % | 0.02 | (0.00 | ) | 0.01 | (0.01 | ) | (0.29 | ) | ||||||||||||
Allowance to nonperforming loans | % | 674.23 | 785.42 | 686.59 | 605.68 | 591.24 |
(1) Average and total loans exclude loan participations sold financed by secured borrowings.
Ryan Beck & Co., Inc. Business Segment
Consolidated Statements of Operations and Statistics — Unaudited
Consolidated Statements of Operations and Statistics — Unaudited
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 9/30/2006 | 9/30/2005 | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Retail brokerage | $ | 33,778 | 36,209 | 39,490 | 36,093 | 37,831 | 109,477 | 112,286 | ||||||||||||||||||||
Capital markets activities | 14,583 | 14,489 | 13,747 | 10,346 | 9,534 | 42,819 | 37,263 | |||||||||||||||||||||
Investment banking activities | 2,238 | 3,384 | 2,917 | 5,242 | 4,065 | 8,539 | 44,800 | |||||||||||||||||||||
Other | (1,538 | ) | 1,290 | 2,646 | 2,469 | 2,694 | 2,398 | 4,812 | ||||||||||||||||||||
Total operating revenues | 49,061 | 55,372 | 58,800 | 54,150 | 54,124 | 163,233 | 199,161 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Employee compensation and benefits | 40,943 | 42,433 | 44,355 | 37,764 | 39,358 | 127,731 | 127,561 | |||||||||||||||||||||
Occupancy and equipment | 4,369 | 3,927 | 3,871 | 3,887 | 4,025 | 12,167 | 11,929 | |||||||||||||||||||||
Advertising and promotion | 1,479 | 1,326 | 1,567 | 1,333 | 1,072 | 4,372 | 4,085 | |||||||||||||||||||||
Professional fees | 2,888 | 1,905 | 1,951 | 2,287 | 1,411 | 6,744 | 4,419 | |||||||||||||||||||||
Communications | 3,472 | 3,930 | 3,954 | 3,470 | 3,371 | 11,356 | 10,084 | |||||||||||||||||||||
Floor broker and clearing fees | 1,823 | 2,142 | 2,719 | 2,433 | 2,305 | 6,684 | 6,685 | |||||||||||||||||||||
Interest expense | 1,436 | 1,514 | 1,621 | 1,130 | 819 | 4,571 | 2,289 | |||||||||||||||||||||
Other | 598 | 2,086 | 1,918 | 1,828 | 1,604 | 4,602 | 5,376 | |||||||||||||||||||||
Total expenses | 57,008 | 59,263 | 61,956 | 54,132 | 53,965 | 178,227 | 172,428 | |||||||||||||||||||||
Income (loss) from Ryan Beck business segment — before income taxes | (7,947 | ) | (3,891 | ) | (3,156 | ) | 18 | 159 | (14,994 | ) | 26,733 | |||||||||||||||||
Provision (benefit) for income taxes | (3,105 | ) | (1,524 | ) | (1,591 | ) | (654 | ) | (264 | ) | (6,220 | ) | 10,749 | |||||||||||||||
Net income (loss) from Ryan Beck business segment | $ | (4,842 | ) | (2,367 | ) | (1,565 | ) | 672 | 423 | (8,774 | ) | 15,984 | ||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Average tangible assets | $ | 236,129 | 238,827 | 231,145 | 220,065 | 208,883 | 235,367 | 189,423 | ||||||||||||||||||||
Average tangible equity | 93,350 | 97,098 | 99,220 | 99,456 | 99,195 | 96,556 | 91,689 | |||||||||||||||||||||
GAAP return on average tangible assets | % | (8.20 | ) | (3.96 | ) | (2.71 | ) | 1.22 | 0.81 | (4.97 | ) | 11.25 | ||||||||||||||||
GAAP return on average tangible equity | (20.75 | ) | (9.75 | ) | (6.31 | ) | 2.70 | 1.71 | (12.12 | ) | 23.24 | |||||||||||||||||
Compensation as a percent of revenues | 83.45 | 76.63 | 75.43 | 69.74 | 72.72 | 78.25 | 64.05 | |||||||||||||||||||||
Retail brokerage to total revenues | 68.85 | 65.39 | 67.16 | 66.65 | 69.90 | 67.07 | 56.38 | |||||||||||||||||||||
Capital markets activities to total revenues | 29.72 | 26.17 | 23.38 | 19.11 | 17.62 | 26.23 | 18.71 | |||||||||||||||||||||
Investment banking revenue to total revenues | 4.56 | 6.11 | 4.96 | 9.68 | 7.51 | 5.23 | 22.49 |
Condensed Statements of Financial Condition — Unaudited
As of | |||||||||||||||||||||
(in thousands) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 12,153 | 3,799 | 3,396 | 5,366 | 5,388 | |||||||||||||||
Securities | 186,588 | 174,657 | 169,570 | 180,292 | 120,298 | ||||||||||||||||
Notes receivable — GMS | — | — | 3,018 | 3,360 | 3,702 | ||||||||||||||||
Property and equipment, net | 9,935 | 8,307 | 7,629 | 7,573 | 7,503 | ||||||||||||||||
Goodwill | 6,184 | 6,184 | 6,184 | 6,184 | 6,184 | ||||||||||||||||
Due from clearing agent | 13,579 | 3,963 | 2,672 | — | 15,650 | ||||||||||||||||
Other assets | 41,041 | 41,650 | 37,916 | 37,334 | 37,332 | ||||||||||||||||
Total assets | $ | 269,480 | 238,560 | 230,385 | 240,109 | 196,057 | |||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Securities sold not yet purchased | $ | 68,820 | 39,173 | 41,828 | 35,177 | 20,688 | |||||||||||||||
Due to clearing agent | 40,842 | 38,730 | 32,206 | 24,486 | — | ||||||||||||||||
Other liabilities | 61,760 | 57,899 | 51,465 | 74,100 | 69,695 | ||||||||||||||||
Total liabilities | 171,422 | 135,802 | 125,499 | 133,763 | 90,383 | ||||||||||||||||
Stockholder’s equity | 98,058 | 102,758 | 104,886 | 106,346 | 105,674 | ||||||||||||||||
Total liabilities and stockholder’s equity | $ | 269,480 | 238,560 | 230,385 | 240,109 | 196,057 | |||||||||||||||
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
Condensed Statements of Operations — Unaudited
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 9/30/2006 | 9/30/2005 | |||||||||||||||||||||
Net interest (expense) | $ | (5,117 | ) | (4,798 | ) | (4,618 | ) | (4,583 | ) | (4,458 | ) | (14,533 | ) | (12,507 | ) | |||||||||||||
Non-Interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 266 | 278 | 820 | 211 | 142 | 1,364 | 410 | |||||||||||||||||||||
Securities activities, net | 2,243 | 2,372 | 2,541 | 475 | 158 | 7,156 | 256 | |||||||||||||||||||||
Other | — | — | — | 514 | 150 | — | 658 | |||||||||||||||||||||
Non-interest income | 2,509 | 2,650 | 3,361 | 1,200 | 450 | 8,520 | 1,324 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 1,107 | 1,061 | 1,487 | 1,048 | 991 | 3,655 | 2,999 | |||||||||||||||||||||
Advertising and promotion | 49 | 195 | 94 | 123 | 77 | 338 | 298 | |||||||||||||||||||||
Professional fees | 212 | 264 | 106 | 28 | 186 | 582 | 1,151 | |||||||||||||||||||||
Other | 243 | 297 | 271 | 153 | 94 | 811 | 363 | |||||||||||||||||||||
Non-interest expense | 1,611 | 1,817 | 1,958 | 1,352 | 1,348 | 5,386 | 4,811 | |||||||||||||||||||||
Loss from parent company activities before income taxes | (4,219 | ) | (3,965 | ) | (3,215 | ) | (4,735 | ) | (5,356 | ) | (11,399 | ) | (15,994 | ) | ||||||||||||||
Benefit for income taxes | (1,748 | ) | (1,702 | ) | (1,074 | ) | (1,673 | ) | (1,902 | ) | (4,524 | ) | (5,762 | ) | ||||||||||||||
Net loss from parent company business segment | $ | (2,471 | ) | (2,263 | ) | (2,141 | ) | (3,062 | ) | (3,454 | ) | (6,875 | ) | (10,232 | ) | |||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | |||||||||||||||||||||
(in thousands) | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash | $ | 2,246 | 8,796 | 4,933 | 7,342 | 12,783 | |||||||||||||||
Securities | 101,621 | 99,486 | 112,006 | 104,602 | 103,755 | ||||||||||||||||
Investment in subsidiaries | 664,239 | 656,854 | 657,765 | 651,078 | 658,454 | ||||||||||||||||
Investment in unconsolidated subsidiaries | 11,996 | 11,996 | 11,996 | 12,464 | 12,510 | ||||||||||||||||
Other assets | 12,256 | 10,716 | 7,383 | 8,210 | 7,075 | ||||||||||||||||
Total assets | $ | 792,358 | 787,848 | 794,083 | 783,696 | 794,577 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Subordinated debentures and notes payable | $ | 263,266 | 263,266 | 268,266 | 263,266 | 263,266 | |||||||||||||||
Other liabilities | 4,544 | 3,881 | 4,047 | 4,094 | 7,919 | ||||||||||||||||
Total liabilities | 267,810 | 267,147 | 272,313 | 267,360 | 271,185 | ||||||||||||||||
Stockholders’ equity | 524,548 | 520,701 | 521,770 | 516,336 | 523,392 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 792,358 | 787,848 | 794,083 | 783,696 | 794,577 | |||||||||||||||