Exhibit 99.1
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BankAtlantic Bancorp Reports Earnings
For The Fourth Quarter and Full Year, 2006
FORT LAUDERDALE, Florida — January 31, 2007 — BankAtlantic Bancorp, Inc. (NYSE: BBX), today reported income from continuing operations of $26.9 million, or $0.43 per diluted share, for the year ended December 31, 2006, compared to $42.5 million, or $0.67 per diluted share, reported for the year ended December 31, 2005. For the fourth quarter 2006, income from continuing operations was $1.0 million, or $0.02 per diluted share, compared to a loss of ($2.2) million, or ($0.04) per diluted share, for the fourth quarter, 2005. [On January 9, 2007, BankAtlantic Bancorp announced that it had signed a definitive agreement for the sale of Ryan Beck Holdings, Inc. (“Ryan Beck”) to Stifel Financial. Accordingly, Ryan Beck’s financial results are classified as discontinued operations effective in the fourth quarter, 2006. Additional information on this pending sale is contained later in this release.]
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “The financial results for the fourth quarter and full year 2006 reflect a challenging environment for gathering core deposits, the foreclosure on one large real estate credit, and the costs of our continued commitment to our new store expansion program. We continue to view this new store expansion program as being crucial to our building sustainable growth in core deposits (Demand, NOW and Savings accounts), and to maintaining our focus on building long-term franchise and shareholder value.
“We are assessing all aspects of our approach to sales and marketing, and have commenced initiatives to reduce overall expenses without impacting our customer service and growth initiatives. Additionally, we have included in the release detailed information on the performance of the store expansion program to support the basis for our belief that this is the correct strategic action for BankAtlantic,” Levan concluded.
Accomplishments and highlights include:
BankAtlantic
BankAtlantic
New Stores Deposit Growth and Impact on Income— BankAtlantic’s Chief Executive Officer and President, Jarett S. Levan, commented, “We are pleased to share the results of the new store program, as these stores have contributed significantly to the growth in core deposit accounts despite this difficult banking environment. BankAtlantic’s store expansion program, consisting of the 17 new stores opened since January 1, 2005, contributed $80 million, or 53.2% of the $151 million annual growth in period-end core deposit balances. Additionally, the program represented 17.4% of the 2006 annual growth in core deposit accounts, and 13.2% of the 2006 growth in non-interest income. These new stores, on average, continue to meet or exceed our goals of attracting $7-8 million in core deposit balances in their first year and to ‘breakeven’ on a current earnings basis in 12-15 months.
“The net operating contribution of BankAtlantic’s store expansion program negatively impacted BankAtlantic’s results by ($2.5) million in the fourth quarter 2006, which was $2.1 million more than the negative impact of ($0.4) million included in the comparable 2005 quarter’s results. (Net operating contribution from the store expansion program is defined as direct revenue and expenses of stores opened since January 1, 2005, plus upfront costs of certain store openings planned in 2007 and 2008, including allocated advertising and promotion, but excluding full cost allocation of back office and other indirect expenses.) Combined, the new stores’ contribution to net income was a negative impact of ($6.0) million in 2006, compared to a loss of ($1.4) million in 2005. Further, the program increased BankAtlantic’s fourth quarter 2006 efficiency ratio by approximately 500 basis points.
“Given the increase in planned new stores in 2007, the program will continue to have a significant negative impact on operating expenses, and in total, on the Bank’s overall net income. We strongly believe, however, that this investment in our future is well supported by the success achieved by the store expansion program to date, particularly in the contribution to the Bank’s overall core deposit growth. Accordingly, we plan to continue the store expansion program as part of our long term strategic growth plan, within the framework of tightened expense discipline, as discussed later in this release.
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“We opened six new stores in the fourth quarter and plan to open approximately 24 new stores in 2007, including at least four new full service stores in the greater Orlando area. The first two stores in greater Orlando opened this week, and our current expansion plan calls for opening more than 20 stores in this area over the next several years. BankAtlantic has maintained a commercial lending presence in Orlando since 2002 and in 2006 opened a Customer Service Center (a telephone call center which serves as a backup to our main center in Fort Lauderdale) and a new sales and training center in Orlando.
Core Deposit Accounts and Balances— “In the fourth quarter 2006, BankAtlantic opened over 73,000 new core deposit accounts and nearly 270,000 for the full year 2006, an increase of 6.3% and 19.2%, respectively, over the number of accounts opened in the corresponding 2005 periods. At quarter end, ‘total bank’ and ‘same store’ core deposit balances increased 7.2% and 6.6%, respectively, vs. the fourth quarter 2005, representing a total bank net increase of $151 million in core deposit balances. (‘Same store’ information consists of information for stores opened for one year or more.) Demand deposits declined slightly to 25.8% of total deposits from 27.2% in the prior year’s quarter; however, core deposit balances increased to 57.9% of total deposits, up from 55.7% in the prior year’s quarter. While we are pleased with the performance of the new stores, our legacy stores are not performing in a manner consistent with the trends of previous years. This is evident in our average core deposit account balance decline of over $500, or 11%, when compared to these balances at the end of 2005. We remain committed to improving the performance of our legacy stores, and are reviewing strategies and programs aimed at improving the performance of these stores,” said Jarett Levan.
Net Incomefor the fourth quarter 2006 was $3.6 million, up from $0.9 million in the comparable 2005 quarter. The fourth quarter 2006 included an $8.2 million provision for loan losses vs. a $0.1 million recovery in the comparable 2005 quarter, and a $1.0 million reduction in the provision for income taxes due to a lower annual effective tax rate. As previously disclosed, the fourth quarter 2005 included a $10.0 million reserve for fines and penalties related to a compliance matter that was first reported in 2004. The effective tax rate for 2006 of 26.5% declined from the 2005 rate of 35.6% due to the relative increase of 2006 tax-exempt income to total taxable income and the non-deductibility of the $10.0 million 2005 reserve.
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Non-interest incomefor the fourth quarter was $36.2 million, or 40.0% greater than the comparable 2005 period. Additionally, fee income as a percent of total revenues rose to 36.9 % in the fourth quarter of 2006 compared to 30.0% in 2005, representing an increasing base of revenues not directly impacted by the interest rate environment. Non-interest income for 2006 rose 31.8% to $131.8 million, vs. $100.1 million reported in 2005. The continued improvement in non-interest income is primarily due to growth in fees directly attributable to the growth in new deposit accounts.
Non-interest expensefor the fourth quarter 2006 of $78.5 million was $2.7 million greater than the corresponding quarter of 2005; excluding the 2005 compliance reserve, the increase over the corresponding quarter was $12.7 million or 19.3%. The growth in expenses from the corresponding quarter of 2005 was the result of our growth initiatives and store expansion strategy, with $5.5 million of the increase attributable directly to the store expansion program. Specifically, the remaining growth reflected an increase in core bank compensation and benefits of $3.9 million and in occupancy and equipment of $3.1 million, offset in part by a decline in advertising and marketing of $0.9 million.
Jarett Levan further commented, “In light of the declining net growth in core deposit balances and our intent to support the store expansion program, we have initiated a focused effort to reduce the growth in overall expenses. In the fourth quarter 2006, we commenced initiatives to curtail non-strategic expense growth, and are pleased with the early results. Expenses increased $3.6 million from the third quarter 2006 to the fourth quarter 2006, with $2.1 million of that growth directly attributable to the store expansion program, with only $1.5 million related to core bank expense growth, primarily in fourth quarter marketing promotions. As part of our focus on overall expenses, our goal is to reduce our marketing expenses in 2007 back to 2005 levels. These expenses were $34.7 million in 2006, compared to $26.9 million in 2005. We believe that our efforts should become evident in the first quarter, 2007. While we recognize this may slow account growth somewhat in 2007, this is part of our expense discipline initiatives and we anticipate that there will be a net favorable impact from this action.”
Net Interest Margin and Earning Assets— Net interest income for the fourth quarter 2006 was $54.1 million compared to $54.8 million in the 2005 quarter, reflecting limited growth in earning assets combined with a nine basis point decline in tax equivalent net interest margin
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during the comparable periods. Average earning assets increased $126.3 million, with increases in all loan categories except for commercial real estate, which declined approximately $110.4 million. Average core deposits increased $136.1 million, or 6.7%, driven by Savings and NOW increases. Average total deposits increased $72.5 million, reflecting growth in Certificates of Deposit partially offset by a reduction in Money Market products. The period-end ratio of borrowings to deposits and borrowings improved slightly in the fourth quarter 2006 to 30.4%, from 31.5% in the comparable 2005 quarter. BankAtlantic continues to target a reduction in this ratio to the 10-15% range, although the Bank’s ability to achieve this level will depend upon growth both in core deposits and in earning assets.
The tax equivalent net interest margin was 3.96% in the fourth quarter 2006, down from 4.05% in the corresponding quarter of 2005, and down from 4.04% in the third quarter of 2006. Average earning assets increased $32.5 million from the third quarter 2006 through purchases of residential loans and growth in consumer loans, partially offset by a reduction in commercial real estate loans. Yield on earning assets increased two basis points from the third quarter of 2006, compared to an increase of ten basis points in the cost of interest-bearing liabilities, driven principally by higher rates paid on Savings and Certificates of Deposit. Average interest-bearing liabilities increased $63.0 million from the third quarter of 2006, led by growth in higher cost liabilities, including Certificates of Deposit and Savings.
The tax equivalent net interest margin for the full year 2006 rose to 4.07%, up from 3.95% for the comparable 12 month period of 2005. Future improvement in net interest margin is challenged by a protracted flatness of the yield curve. Until there is a change in the interest rate environment, continued growth in core deposits will largely determine the amount of any future improvement in net interest margin. While further margin improvement is anticipated, we expect that the rate of increase in the margin is likely to be relatively modest in the near term. (All references to net interest margin and earning assets exclude loan participations sold previously recognized as secured borrowings.)
Credit Quality— During the fourth quarter 2006, the Bank took possession of the real estate securing the $27.2 million non-performing loan disclosed in the Company’s third quarter Form 10-Q filing. The loan was charged down by $7.0 million to its collateral value less costs to sell and transferred to Real Estate Owned (REO) with a corresponding increase in the provision for loan losses of the same amount.
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As a result, the ratio of non-performing loans to total loans decreased from 0.70% at September 30, 2006 to 0.10% at December 31, 2006. Including the effect of this one loan, the ratio of annualized net charge-offs to average loans rose to 0.61% for the fourth quarter 2006 and 0.13% for the full year. The ratio of non-performing assets to total loans and real estate owned decreased from 0.72% at September 30, 2006 to 0.55% at December 31, 2006. Fourth quarter 2006 provision expense was $8.2 million representing 0.70% of average loans vs. 0.02% of average loans for the third quarter 2006. On a full year basis, provision expense for 2006 was $8.6 million, or 0.19% of average loans vs. a negative provision of ($6.6) million or (0.14%) of average loans for 2005.
Alan Levan commented, “We are very aware of concerns at the national level and within Florida about the condition of the real estate market, and are closely watching these conditions in our markets and the potential impact on our loan portfolio. We believe that our credit process has remained conservative and consistent with our practices over the past several years during which our credit experience was excellent. That being said, we are monitoring our real estate exposure with the utmost of caution and attention to the current market trends.”
Ryan Beck Holdings, Inc.
On January 9, 2007, BankAtlantic Bancorp announced it had reached a definitive agreement under which Ryan Beck will be sold to and merged into Stifel Financial Corp. (NYSE: SF). The merger is structured as a tax-free reorganization and BankAtlantic Bancorp is to receive consideration, as follows:
• | Initial consideration consisting of approximately 2,531,000 shares of Stifel common stock. At closing Stifel may substitute cash in lieu of up to approximately 150,000 shares, based upon a value of the greater of $36.00 per share or market. | ||
• | Five-year warrants to purchase up to 500,000 shares of Stifel’s common stock, at an exercise price of $36.00 per share. | ||
• | A contingent payment based on defined revenues attributable to specified individuals in Ryan Beck’s existing private client division over the two-year period following closing. |
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• | A second contingent payment based on defined revenues attributable to specified individuals in Ryan Beck’s existing investment banking division. Each of the contingent earn-out payments is payable, at Stifel’s election, in cash or common stock. |
Alan Levan commented, “This transaction gives us the opportunity to combine Ryan Beck with a larger, very successful public company which has the scale to achieve greater operating efficiencies and which has effectively integrated several acquisitions into their network. It was the Stifel track record that convinced us that a primarily stock-based payment was preferable, providing BankAtlantic Bancorp the opportunity to maximize the return on our investment in Ryan Beck. Since the announcement of the deal, Stifel’s stock is up substantially from $36 per share at the time the terms were negotiated, to $47.62 per share as of January 30, 2007, an increase of about 30%. While we have no immediate plans to sell any of the Stifel stock that we will be receiving, and there are limitations on our sale of the stock, we do anticipate gradually reducing our investment, consistent with market conditions and as the combined companies begin to realize the benefits of the consolidation. We anticipate that the resulting proceeds will be used to support future growth of the BankAtlantic franchise, and provide additional funding of our on-going stock repurchase program and investments.”
BankAtlantic Bancorp:
BankAtlantic Bancorp recently announced that its Board of Directors appointed Jarett S. Levan to the positions of Chief Executive Officer of its wholly owned subsidiary, BankAtlantic, and President of BankAtlantic Bancorp. Jarett had previously been the Bank’s President and will retain that title.
He will continue to work with the executive team to maintain the focus of BankAtlantic’s Florida’s Most Convenient Bank initiatives and will continue to serve on the BankAtlantic and BankAtlantic Bancorp Board of Directors.
During the fourth 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 January 3, 2007. The fourth quarter’s dividend declaration marked BankAtlantic Bancorp’s 54th consecutive quarterly dividend payment.
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Financial Highlights:
Fourth Quarter, 2006 Compared to Fourth Quarter, 2005
Fourth Quarter, 2006 Compared to Fourth Quarter, 2005
BankAtlantic Bancorp — consolidated:
• | Income (loss) from continuing operations of $1.0 million vs. ($2.2) million | ||
• | Diluted earnings (loss) per share from continuing operations of $0.02 vs. ($0.04) | ||
• | Return on average tangible equity from continuing operations was 0.92% | ||
• | Book value per share was $8.60 |
BankAtlantic:
• | Business segment net income was $3.6 million vs. $897,000 an increase of 303% | ||
• | Over 73,000 new core deposit accounts opened, an increase of 6.3% over accounts opened in the corresponding 2005 quarter, with related new balances of $241 million | ||
• | Return on average tangible assets was 0.24% | ||
• | Return on average tangible equity was 2.86% | ||
• | Tax equivalent net interest margin remained at 3.96% | ||
• | Non-interest income was $36.2 million vs. $25.8 million, an increase of 40% | ||
• | Non-interest expense grew to $78.5 million vs. $75.8 million, an increase of 4% |
Ryan Beck Holdings, Inc. (discontinued operations):
• | Business segment loss was ($2.7) million vs. income of $672,000 | ||
• | Return on average tangible equity was (12.05%) | ||
• | Total revenues were $55.2 million vs. $54.2 million |
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Year to Date 2006 Compared to Year to Date 2005
BankAtlantic Bancorp — consolidated:
• | Income from continuing operations was $26.9 million vs. $42.5 million in 2005. Excluding the income impact resulting from the 2006 early redemption of debt, the 2005 facilities impairment charge, and the 2005 reserve for the compliance matter, operating net income would have been $26.8 million in 2006 vs. $54.9 million in 2005, a decrease of 51% (These adjustments are detailed in the financial statements on the Company’s website and in the attached tables.) | ||
• | Diluted earnings per share from continuing operations of $0.43 vs. $0.67. Excluding the effects of the adjustments listed above, diluted earnings per share were $0.43 vs. $0.87, a decrease of 51% | ||
• | Return on average tangible equity from continuing operations was 6% |
BankAtlantic:
• | Business segment net income was $36.3 million vs. $55.8 million, a decrease of 35%. | ||
• | Nearly 270,000 new core deposit accounts opened, an increase of 19.2% over accounts opened in 2005, with balances of $684 million | ||
• | Return on average tangible assets was 0.61% | ||
• | Return on average tangible equity was 7.35% | ||
• | Tax equivalent net interest margin excluding secured borrowings increased to 4.07% vs. 3.95%. | ||
• | Non-interest income, before the 2006 gains associated with debt redemption was $130.3 million vs. $100.1 million, an increase of 30% | ||
• | Non-interest expense, before the 2006 costs associated with debt redemption, the 2005 impairment charge and the 2005 reserve for the compliance matter, grew to $292.0 million vs. $227.4 million, an increase of 28% |
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Ryan Beck Holdings, Inc.:
• | Business segment loss was ($11.5) million vs. income of $16.7 million | ||
• | Return on average tangible equity was (12.10%) | ||
• | Total operating revenues decreased to $218.5 million vs. $253.3 million |
BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Thursday, February 1, 2007, 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 number6422197.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Thursday, March 1, 2007. 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 is6422197.
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=37385. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Thursday, March 1, 2007.
BankAtlantic Bancorp’s fourth quarter and full year, 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 fourth quarter and full year, 2006 earnings results press release and financial summary, and the Supplemental Financials will also be made available upon request via fax, email, or postal service mail. To request a copy, contact BankAtlantic Bancorp’s Investor Relations department using the contact information listed below.
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About BankAtlantic Bancorp:
BankAtlantic Bancorp (NYSE: BBX) is a diversified financial services holding company and the parent company of BankAtlantic. It also owns Ryan Beck Holdings, Inc. (“Ryan Beck”), a subsidiary engaged in retail and institutional brokerage and investment banking. On January 9, 2007, BankAtlantic Bancorp announced that it had entered into an agreement with Stifel Financial Corp. (Stifel), for the sale of Ryan Beck to Stifel. This sale is expected to close in the first quarter, 2007, subject to approvals. Ryan Beck is accounted for as a discontinued operation.
BankAtlantic Bancorp (NYSE: BBX) is a diversified financial services holding company and the parent company of BankAtlantic. It also owns Ryan Beck Holdings, Inc. (“Ryan Beck”), a subsidiary engaged in retail and institutional brokerage and investment banking. On January 9, 2007, BankAtlantic Bancorp announced that it had entered into an agreement with Stifel Financial Corp. (Stifel), for the sale of Ryan Beck to Stifel. This sale is expected to close in the first quarter, 2007, subject to approvals. Ryan Beck is accounted for as a discontinued operation.
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 over 90 stores and operates more than 200 conveniently located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, including several stores open until midnight, Totally Free Online Banking & Bill Pay, 24/7 Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift.
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 over 90 stores and operates more than 200 conveniently located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, including several stores open until midnight, Totally Free Online Banking & Bill Pay, 24/7 Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift.
About Ryan Beck Holdings, Inc.:
Founded in 1946, Ryan Beck provides financial advice and innovative solutions to individuals, institutions and corporate clients through the activities of approximately 1,100 employees in 41 offices located in 11 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 Groups, Ryan Beck raises capital and provides financial advisory services to financial institutions, middle market companies and municipalities.
Founded in 1946, Ryan Beck provides financial advice and innovative solutions to individuals, institutions and corporate clients through the activities of approximately 1,100 employees in 41 offices located in 11 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 Groups, Ryan Beck raises capital and provides financial advisory services to financial institutions, middle market companies and municipalities.
For further information, please visit our websites:
www.BankAtlanticBancorp.com
www.BankAtlantic.com
www.RyanBeck.com
www.BankAtlanticBancorp.com
www.BankAtlantic.com
www.RyanBeck.com
BankAtlantic Bancorp Contact Info:
Donna Rouzeau,
Assistant Vice President, Investor Relations & Corporate Communications
Email:CorpComm@BankAtlanticBancorp.com
Leo Hinkley,
Senior Vice President, Investor Relations Officer
Email:InvestorRelations@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
Donna Rouzeau,
Assistant Vice President, Investor Relations & Corporate Communications
Email:CorpComm@BankAtlanticBancorp.com
Leo Hinkley,
Senior Vice President, Investor Relations Officer
Email:InvestorRelations@BankAtlanticBancorp.com
Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
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BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Public Relations:
Hattie Hess, Vice President, Public Relations
Telephone: 954-940-6383, Fax: 954-940-6310
Email:hhess@BankAtlantic.com
Public Relations for BankAtlantic:
Boardroom Communications
Caren Berg
Phone: 954-370-8999, Fax: 954-370-8892
Email:caren@boardroompr.com
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
• 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.
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Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. When used in this press release and in any documents incorporated by reference herein, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify certain of such forward-looking statements. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of BankAtlantic Bancorp, Inc. (“the Company”) and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services; credit risks and loan losses, and the related sufficiency of the allowance for loan losses, including the impact on the credit quality of our loans of changes in the real estate markets in our trade area and where our collateral is located; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on the bank’s net interest margin; adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on our activities and the value of our assets; BankAtlantic’s seven-day banking initiatives and other growth, marketing or advertising initiatives not resulting in continued growth of core deposits or producing results which do not justify their costs; the success of our expenses discipline initiatives; BankAtlantic’s new store expansion program, successfully opening the anticipated number of new stores in 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 Holdings, Inc., which are subject to a number of risks and uncertainties, which include, but are not limited to, that the sale of Ryan Beck to Stifel may not be consummated on the terms described or on any basis, and that the value of the Stifel shares and the warrants received will vary over time. 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 Years Ended | |||||||||||||||||||||||||||||||
12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | ||||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations (GAAP basis) | $ | 1,048 | 7,366 | 10,443 | 8,022 | (2,165 | ) | 26,879 | 42,526 | |||||||||||||||||||||||
Net income (loss) (GAAP basis) | $ | (1,670 | ) | 2,524 | 8,076 | 6,457 | (1,493 | ) | 15,387 | 59,182 | ||||||||||||||||||||||
Operating net income ** | (note 1) | $ | 1,048 | 7,366 | 10,405 | 8,014 | 7,835 | 26,833 | 54,935 | |||||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 61,007 | 61,046 | 61,324 | 61,005 | 60,618 | 61,095 | 60,426 | |||||||||||||||||||||||||
Diluted | 62,278 | 62,412 | 62,820 | 62,761 | 62,898 | 62,563 | 63,120 | |||||||||||||||||||||||||
Key Performance Ratios (GAAP basis): | ||||||||||||||||||||||||||||||||
Basic earnings (loss) per share from continuing operations | 0.02 | 0.12 | 0.17 | 0.13 | (0.04 | ) | 0.44 | 0.70 | ||||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations* | 0.02 | 0.12 | 0.17 | 0.13 | (0.04 | ) | 0.43 | 0.67 | ||||||||||||||||||||||||
Basic earnings (loss) per share | $ | (0.03 | ) | 0.04 | 0.13 | 0.11 | (0.03 | ) | 0.25 | 0.98 | ||||||||||||||||||||||
Diluted earnings (loss) per share * | $ | (0.03 | ) | 0.04 | 0.13 | 0.10 | (0.03 | ) | 0.25 | 0.92 | ||||||||||||||||||||||
Return on average tangible assets from continuing operations | (note 2) | % | 0.07 | 0.46 | 0.68 | 0.51 | (0.14 | ) | 0.42 | 0.65 | ||||||||||||||||||||||
Return on average tangible equity from continuing operations | (note 2) | % | 0.92 | 6.52 | 9.27 | 7.24 | (1.91 | ) | 6.00 | 10.07 | ||||||||||||||||||||||
Key Performance Ratios (Operating basis): | ||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.02 | 0.12 | 0.17 | 0.13 | 0.13 | 0.44 | 0.91 | ||||||||||||||||||||||||
Diluted earnings per share * | $ | 0.02 | 0.12 | 0.17 | 0.13 | 0.12 | 0.43 | 0.87 | ||||||||||||||||||||||||
Return on average tangible assets | (note 2) | % | 0.07 | 0.46 | 0.67 | 0.51 | 0.49 | 0.42 | 0.84 | |||||||||||||||||||||||
Return on average tangible equity | (note 2) | % | 0.92 | 6.52 | 9.24 | 7.24 | 6.92 | 5.98 | 13.01 | |||||||||||||||||||||||
* Diluted earnings per share calculation deducts (in thousands): subsidiaries stock options, if dilutive | $ | — | — | — | — | (28 | ) | — | (834 | ) | ||||||||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||||
Assets | $ | 6,520 | 6,467 | 6,272 | 6,388 | 6,463 | 6,413 | 6,603 | ||||||||||||||||||||||||
Tangible assets | (note 2) | $ | 6,436 | 6,383 | 6,188 | 6,304 | 6,378 | 6,328 | 6,517 | |||||||||||||||||||||||
Loans excluding certain loan participations sold | (note 3) | $ | 4,655 | 4,611 | 4,482 | 4,488 | 4,550 | 4,560 | 4,686 | |||||||||||||||||||||||
Loan participations sold | (note 3) | $ | — | — | — | 125 | 134 | 31 | 155 | |||||||||||||||||||||||
Investments | $ | 1,304 | 1,317 | 1,258 | 1,259 | 1,263 | 1,285 | 1,283 | ||||||||||||||||||||||||
Deposits and escrows | $ | 3,776 | 3,731 | 3,849 | 3,831 | 3,704 | 3,796 | 3,644 | ||||||||||||||||||||||||
Stockholders’ equity | $ | 533 | 526 | 526 | 522 | 533 | 525 | 505 | ||||||||||||||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 454 | 452 | 451 | 443 | 453 | 448 | 422 |
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) | 12/31/2006 | 12/31/2005 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 136,467 | 167,032 | |||||
Short term investments | 5,722 | 3,229 | ||||||
Securities available for sale (at fair value) | 651,316 | 674,544 | ||||||
Securities owned (at fair value) | 109,838 | 180,292 | ||||||
Investment securities and tax certificates (approximate fair value: $404,411 and $364,122) | 402,073 | 364,444 | ||||||
Loans receivable, net of allowance for loan losses of $43,602 and $41,192 | 4,586,607 | 4,622,234 | ||||||
Residential loans held for sale | 9,313 | 2,538 | ||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 80,217 | 69,931 | ||||||
Accrued interest receivable | 47,673 | 41,490 | ||||||
Real estate held for development and sale | 25,333 | 21,177 | ||||||
Real estate owned | 21,747 | 967 | ||||||
Investments and advances to unconsolidated subsidiaries | 15,074 | 12,464 | ||||||
Office properties and equipment, net | 229,361 | 154,120 | ||||||
Deferred tax asset, net | 30,004 | 29,615 | ||||||
Goodwill | 76,674 | 76,674 | ||||||
Core deposit intangible asset | 6,834 | 8,395 | ||||||
Due from clearing agent | 18,173 | — | ||||||
Other assets | 43,236 | 42,265 | ||||||
Total assets | $ | 6,495,662 | 6,471,411 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | ||||||||
Demand | $ | 995,920 | 1,019,949 | |||||
NOW | 779,383 | 755,708 | ||||||
Savings | 465,172 | 313,889 | ||||||
Money market | 677,642 | 846,441 | ||||||
Certificates of deposit | 948,919 | 816,689 | ||||||
Total deposits | 3,867,036 | 3,752,676 | ||||||
Advances from FHLB | 1,517,058 | 1,283,532 | ||||||
Securities sold under agreements to repurchase | 101,932 | 116,026 | ||||||
Federal funds purchased | 32,026 | 139,475 | ||||||
Secured borrowings | — | 138,270 | ||||||
Subordinated debentures, notes and bonds payable | 29,923 | 39,092 | ||||||
Junior subordinated debentures | 263,266 | 263,266 | ||||||
Securities sold but not yet purchased | 31,407 | 35,177 | ||||||
Due to clearing agent | — | 24,486 | ||||||
Other liabilities | 128,032 | 163,075 | ||||||
Total liabilities | 5,970,680 | 5,955,075 | ||||||
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 56,157,425 and 55,884,089 shares | 562 | 559 | ||||||
Class B common stock, $.01 par value, authorized 45,000,000 shares; issued and outstanding 4,876,124 and 4,876,124 shares | 49 | 49 | ||||||
Additional paid-in capital | 260,460 | 261,720 | ||||||
Unearned compensation — restricted stock grants | — | (936 | ) | |||||
Retained earnings | 265,089 | 261,279 | ||||||
Total stockholders’ equity before accumulated other comprehensive loss | 526,160 | 522,671 | ||||||
Accumulated other comprehensive loss | (1,178 | ) | (6,335 | ) | ||||
Total stockholders’ equity | 524,982 | 516,336 | ||||||
Total liabilities and stockholders’ equity | $ | 6,495,662 | 6,471,411 | |||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For The Three Months Ended | For the Years Ended | |||||||||||||||||||||||||||||||
(in thousands) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 81,019 | 80,790 | 75,765 | 75,386 | 75,404 | 312,960 | 293,250 | ||||||||||||||||||||||||
Interest on securities available for sale | 4,472 | 4,483 | 4,314 | 4,305 | 4,379 | 17,574 | 19,673 | |||||||||||||||||||||||||
Interest on tax exempt securities | 3,817 | 3,804 | 3,862 | 3,806 | 3,695 | 15,289 | 14,422 | |||||||||||||||||||||||||
Interest and dividends on taxable investments and tax certificates | 6,543 | 6,039 | 4,396 | 4,376 | 4,790 | 21,354 | 18,549 | |||||||||||||||||||||||||
Total interest income | 95,851 | 95,116 | 88,337 | 87,873 | 88,268 | 367,177 | 345,894 | |||||||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Interest on deposits | 17,258 | 15,095 | 13,852 | 12,754 | 11,736 | 58,959 | 40,084 | |||||||||||||||||||||||||
Interest on advances from FHLB | 20,837 | 18,509 | 13,007 | 14,139 | 15,565 | 66,492 | 62,175 | |||||||||||||||||||||||||
Interest on short-term borrowed funds | 2,505 | 5,078 | 4,931 | 2,575 | 2,746 | 15,089 | 9,599 | |||||||||||||||||||||||||
Interest on secured borrowings | — | — | — | 2,401 | 2,862 | 2,401 | 10,144 | |||||||||||||||||||||||||
Interest on long-term debt | 6,184 | 6,521 | 6,377 | 5,963 | 5,695 | 25,045 | 21,786 | |||||||||||||||||||||||||
Capitalized interest on real estate development | (85 | ) | (75 | ) | (289 | ) | (480 | ) | (513 | ) | (929 | ) | (1,879 | ) | ||||||||||||||||||
Total interest expense | 46,699 | 45,128 | 37,878 | 37,352 | 38,091 | 167,057 | 141,909 | |||||||||||||||||||||||||
NET INTEREST INCOME | 49,152 | 49,988 | 50,459 | 50,521 | 50,177 | 200,120 | 203,985 | |||||||||||||||||||||||||
Provision for (recovery from) loan losses | 8,160 | 271 | (20 | ) | 163 | (109 | ) | 8,574 | (6,615 | ) | ||||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 40,992 | 49,717 | 50,479 | 50,358 | 50,286 | 191,546 | 210,600 | |||||||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Service charges on deposits | 26,091 | 24,008 | 21,274 | 19,099 | 17,808 | 90,472 | 61,956 | |||||||||||||||||||||||||
Other service charges and fees | 7,188 | 6,779 | 7,353 | 6,222 | 6,436 | 27,542 | 23,347 | |||||||||||||||||||||||||
Securities activities, net | 2,199 | 2,243 | 2,830 | 2,541 | 474 | 9,813 | 847 | |||||||||||||||||||||||||
Gain on sales of loans | 211 | 175 | 200 | 94 | 221 | 680 | 742 | |||||||||||||||||||||||||
Gain associated with debt redemption | — | — | 1,092 | 436 | — | 1,528 | — | |||||||||||||||||||||||||
Income (loss) from real estate operations | — | — | 114 | (1,096 | ) | (558 | ) | (982 | ) | 4,480 | ||||||||||||||||||||||
Income from unconsolidated subsidiaries | 303 | 266 | 278 | 820 | 211 | 1,667 | 621 | |||||||||||||||||||||||||
Gain (loss) on the sale of office properties and equipment, net | (148 | ) | (3 | ) | 1,806 | (28 | ) | (16 | ) | 1,627 | 277 | |||||||||||||||||||||
Other | 2,581 | 2,740 | 2,676 | 2,272 | 2,315 | 10,269 | 10,029 | |||||||||||||||||||||||||
Total non-interest income | 38,425 | 36,208 | 37,623 | 30,360 | 26,891 | 142,616 | 102,299 | |||||||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Employee compensation and benefits | 38,759 | 38,619 | 37,590 | 35,836 | 32,493 | 150,804 | 117,573 | |||||||||||||||||||||||||
Occupancy and equipment | 16,247 | 15,018 | 13,429 | 12,614 | 11,507 | 57,308 | 41,621 | |||||||||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | — | — | 3,706 | |||||||||||||||||||||||||
Advertising and promotion | 10,400 | 8,649 | 7,400 | 8,618 | 10,368 | 35,067 | 27,317 | |||||||||||||||||||||||||
Professional fees | 1,632 | 1,968 | 2,374 | 2,317 | 2,405 | 8,291 | 10,590 | |||||||||||||||||||||||||
Costs associated with debt redemption | — | — | 1,034 | 423 | — | 1,457 | — | |||||||||||||||||||||||||
Check losses | 2,639 | 2,855 | 1,875 | 1,246 | 2,627 | 8,615 | 5,176 | |||||||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | — | — | 10,000 | — | 10,000 | |||||||||||||||||||||||||
Other | 10,164 | 9,398 | 10,388 | 8,694 | 7,597 | 38,644 | 30,987 | |||||||||||||||||||||||||
Total non-interest expense | 79,841 | 76,507 | 74,090 | 69,748 | 76,997 | 300,186 | 246,970 | |||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (424 | ) | 9,418 | 14,012 | 10,970 | 180 | 33,976 | 65,929 | ||||||||||||||||||||||||
(Benefit) provision for income taxes | (1,472 | ) | 2,052 | 3,569 | 2,948 | 2,345 | 7,097 | 23,403 | ||||||||||||||||||||||||
Income (loss) from continuing operations | 1,048 | 7,366 | 10,443 | 8,022 | (2,165 | ) | 26,879 | 42,526 | ||||||||||||||||||||||||
Discontinued operations | (2,718 | ) | (4,842 | ) | (2,367 | ) | (1,565 | ) | 672 | (11,492 | ) | 16,656 | ||||||||||||||||||||
GAAP net income (loss) | $ | (1,670 | ) | 2,524 | 8,076 | 6,457 | (1,493 | ) | 15,387 | 59,182 | ||||||||||||||||||||||
Reconciliation of Operating and GAAP Net Income (loss) from Continuing Operations | ||||||||||||||||||||||||||||||||
GAAP net income (loss) from continuing operations | $ | 1,048 | 7,366 | 10,443 | 8,022 | (2,165 | ) | 26,879 | 42,526 | |||||||||||||||||||||||
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 | — | 10,000 | |||||||||||||||||||||||||
Operating net income | (note 1) | $ | 1,048 | 7,366 | 10,405 | 8,014 | 7,835 | 26,833 | 54,935 | |||||||||||||||||||||||
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) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,176,047 | 2,130,077 | 2,047,430 | 2,043,310 | 2,115,899 | ||||||||||||||||||
Commercial real estate excluding certain loan participations sold | (note 3) | 1,462,005 | 1,498,192 | 1,483,299 | 1,561,236 | 1,576,131 | ||||||||||||||||||
Loan participations sold | (note 3) | — | — | — | 125,293 | 134,080 | ||||||||||||||||||
Consumer | 584,972 | 563,002 | 546,624 | 539,937 | 538,321 | |||||||||||||||||||
Commercial business | 155,884 | 152,796 | 148,776 | 102,533 | 93,412 | |||||||||||||||||||
Small business | 276,103 | 267,263 | 255,701 | 241,103 | 226,153 | |||||||||||||||||||
Total Loans | 4,655,011 | 4,611,330 | 4,481,830 | 4,613,412 | 4,683,996 | |||||||||||||||||||
Investments — taxable | 903,484 | 918,159 | 853,224 | 857,866 | 867,625 | |||||||||||||||||||
Investments — tax exempt | 400,804 | 399,091 | 404,644 | 401,541 | 394,935 | |||||||||||||||||||
Total interest earning assets | 5,959,299 | 5,928,580 | 5,739,698 | 5,872,819 | 5,946,556 | |||||||||||||||||||
Goodwill and core deposit intangibles | 83,708 | 84,098 | 84,486 | 84,878 | 85,277 | |||||||||||||||||||
Other non-interest earning assets | 476,550 | 454,220 | 448,191 | 430,746 | 431,215 | |||||||||||||||||||
Total assets | $ | 6,519,557 | 6,466,898 | 6,272,375 | 6,388,443 | 6,463,048 | ||||||||||||||||||
Tangible assets | (note 2) | $ | 6,435,849 | 6,382,800 | 6,187,889 | 6,303,565 | 6,377,771 | |||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand deposits | $ | 1,006,242 | 1,043,497 | 1,109,005 | 1,065,510 | 1,017,467 | ||||||||||||||||||
Savings | 413,239 | 367,829 | 364,946 | 331,117 | 309,007 | |||||||||||||||||||
NOW | 735,164 | 727,517 | 764,738 | 760,419 | 692,128 | |||||||||||||||||||
Money market | 694,057 | 733,058 | 765,805 | 829,700 | 887,858 | |||||||||||||||||||
Certificates of deposit | 927,431 | 858,688 | 844,318 | 843,866 | 797,187 | |||||||||||||||||||
Total deposits | 3,776,133 | 3,730,589 | 3,848,812 | 3,830,612 | 3,703,647 | |||||||||||||||||||
Short-term borrowed funds | 189,519 | 374,913 | 396,870 | 239,144 | 276,333 | |||||||||||||||||||
FHLB advances | 1,528,039 | 1,354,944 | 1,010,458 | 1,164,675 | 1,345,033 | |||||||||||||||||||
Secured borrowings | (note 3) | — | — | — | 125,293 | 134,080 | ||||||||||||||||||
Long-term debt | 293,592 | 300,549 | 303,052 | 301,529 | 301,655 | |||||||||||||||||||
Total borrowings | 2,011,150 | 2,030,406 | 1,710,380 | 1,830,641 | 2,057,101 | |||||||||||||||||||
Other liabilities | 199,086 | 180,093 | 186,741 | 204,693 | 169,156 | |||||||||||||||||||
Total liabilities | 5,986,369 | 5,941,088 | 5,745,933 | 5,865,946 | 5,929,904 | |||||||||||||||||||
Stockholders’ equity | 533,188 | 525,810 | 526,442 | 522,497 | 533,144 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,519,557 | 6,466,898 | 6,272,375 | 6,388,443 | 6,463,048 | ||||||||||||||||||
Other comprehensive (loss) in stockholders’ equity | (4,379 | ) | (10,270 | ) | (8,700 | ) | (5,350 | ) | (4,810 | ) | ||||||||||||||
Tangible stockholders’ equity | (note 2) | $ | 453,859 | 451,982 | 450,656 | 442,969 | 452,677 | |||||||||||||||||
Period End | ||||||||||||||||||||||||
Total loans, net excluding certain loan participations sold | $ | 4,595,920 | 4,638,215 | 4,484,764 | 4,412,989 | 4,486,502 | ||||||||||||||||||
Loan participations sold | (note 3) | — | — | — | 111,754 | 138,270 | ||||||||||||||||||
Total assets | 6,495,662 | 6,569,650 | 6,402,357 | 6,357,602 | 6,471,411 | |||||||||||||||||||
Total stockholders’ equity | 524,982 | 524,548 | 520,991 | 521,770 | 516,336 | |||||||||||||||||||
Common shares outstanding | 61,033,549 | 60,990,724 | 61,215,046 | 61,293,692 | 60,760,213 | |||||||||||||||||||
Cash dividends | 2,507,673 | 2,506,136 | 2,330,675 | 2,334,112 | 2,308,888 | |||||||||||||||||||
Common stock cash dividends per share | 0.041 | 0.041 | 0.038 | 0.038 | 0.038 | |||||||||||||||||||
Closing stock price | 13.81 | 14.22 | 14.84 | 14.39 | 14.00 | |||||||||||||||||||
High stock price for the quarter | 13.94 | 14.97 | 15.99 | 15.23 | 17.19 | |||||||||||||||||||
Low stock price for the quarter | 12.66 | 12.96 | 13.86 | 12.67 | 13.29 | |||||||||||||||||||
Book value per share | 8.60 | 8.60 | 8.51 | 8.51 | 8.50 |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Three Months Ended | For the Years Ended | |||||||||||||||||||||||||||
(In thousands) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||||||||||
Net interest income | $ | 54,103 | 55,107 | 55,257 | 55,138 | 54,760 | 219,605 | 221,075 | ||||||||||||||||||||
Provision for (recovery from) loan losses | 8,160 | 271 | (20 | ) | 163 | (109 | ) | 8,574 | (6,615 | ) | ||||||||||||||||||
Net Interest income after provision for loan losses | 45,943 | 54,836 | 55,277 | 54,975 | 54,869 | 211,031 | 227,690 | |||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 26,091 | 24,008 | 21,274 | 19,099 | 17,808 | 90,472 | 61,956 | |||||||||||||||||||||
Other service charges and fees | 7,188 | 6,779 | 7,353 | 6,222 | 6,436 | 27,542 | 23,347 | |||||||||||||||||||||
Securities activities, net | 200 | — | 458 | (1 | ) | — | 657 | 117 | ||||||||||||||||||||
Gain on sales of loans | 211 | 175 | 200 | 94 | 221 | 680 | 742 | |||||||||||||||||||||
Gain associated with debt redemption | — | — | 1,092 | 436 | — | 1,528 | — | |||||||||||||||||||||
Income (loss) from real estate operations | — | — | 114 | (1,096 | ) | (558 | ) | (982 | ) | 4,480 | ||||||||||||||||||
Income from unconsolidated subsidiaries | 33 | — | — | — | — | 33 | — | |||||||||||||||||||||
Gain (loss) on the sale of office properties, net | (148 | ) | (3 | ) | 1,806 | (28 | ) | (16 | ) | 1,627 | 277 | |||||||||||||||||
Other non-interest income | 2,590 | 2,752 | 2,663 | 2,282 | 1,944 | 10,287 | 9,140 | |||||||||||||||||||||
Total non-interest income | 36,165 | 33,711 | 34,960 | 27,008 | 25,835 | 131,844 | 100,059 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 37,709 | 37,512 | 36,529 | 34,349 | 31,445 | 146,099 | 113,526 | |||||||||||||||||||||
Occupancy and equipment | 16,242 | 15,015 | 13,424 | 12,610 | 11,503 | 57,291 | 41,611 | |||||||||||||||||||||
Impairment of office properties and equipment | — | — | — | — | — | — | 3,706 | |||||||||||||||||||||
Advertising | 10,331 | 8,599 | 7,205 | 8,524 | 10,244 | 34,659 | 26,895 | |||||||||||||||||||||
Professional fees | 1,576 | 1,756 | 2,109 | 2,212 | 2,521 | 7,653 | 9,695 | |||||||||||||||||||||
Costs associated with debt redemption | — | — | 1,034 | 423 | — | 1,457 | — | |||||||||||||||||||||
Reserve for fines and penalties, compliance matter | — | — | — | — | 10,000 | — | 10,000 | |||||||||||||||||||||
Other | 12,621 | 12,026 | 11,960 | 9,682 | 10,076 | 46,289 | 35,658 | |||||||||||||||||||||
Total non-interest expense | 78,479 | 74,908 | 72,261 | 67,800 | 75,789 | 293,448 | 241,091 | |||||||||||||||||||||
Income from bank operations business segment before income taxes | 3,629 | 13,639 | 17,976 | 14,183 | 4,915 | 49,427 | 86,658 | |||||||||||||||||||||
Provision for income taxes | 11 | 3,801 | 5,272 | 4,021 | 4,018 | 13,105 | 30,838 | |||||||||||||||||||||
Net income from bank operations business segment | $ | 3,618 | 9,838 | 12,704 | 10,162 | 897 | 36,322 | 55,820 | ||||||||||||||||||||
Reconciliation of Operating and business segment net income | ||||||||||||||||||||||||||||
Business segment income | $ | 3,618 | 9,838 | 12,704 | 10,162 | 897 | 36,322 | 55,820 | ||||||||||||||||||||
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 | — | 10,000 | |||||||||||||||||||||
Operating net income | $ | 3,618 | 9,838 | 12,666 | 10,154 | 10,897 | 36,276 | 68,229 | ||||||||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
(in thousands except percentages | For the Three Months Ended | For the Years Ended | ||||||||||||||||||||||||||
and per share data) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
GAAP tax equivalent: | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,702,063 | 5,669,550 | 5,460,276 | 5,591,286 | 5,709,807 | 5,606,272 | 5,897,963 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,520,332 | 4,457,382 | 4,189,321 | 4,338,215 | 4,485,417 | 4,377,033 | 4,710,258 | ||||||||||||||||||||
Average tangible assets | $ | 6,086,579 | 6,041,302 | 5,827,060 | 5,947,154 | 6,053,697 | 5,976,464 | 6,207,435 | ||||||||||||||||||||
Average tangible equity | $ | 505,580 | 500,655 | 491,459 | 484,162 | 495,614 | 493,976 | 470,512 | ||||||||||||||||||||
Borrowings to deposits and borrowings | % | 30.36 | 33.63 | 29.35 | 26.31 | 31.45 | 30.36 | 31.45 | ||||||||||||||||||||
Operating (2): | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,702,063 | 5,669,550 | 5,460,276 | 5,465,993 | 5,575,727 | 5,575,378 | 5,743,439 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,520,332 | 4,457,382 | 4,189,321 | 4,212,922 | 4,351,337 | 4,346,139 | 4,555,734 | ||||||||||||||||||||
Average tangible assets | $ | 6,086,579 | 6,041,302 | 5,827,060 | 5,821,861 | 5,919,617 | 5,945,570 | 6,052,911 | ||||||||||||||||||||
Average tangible equity | $ | 505,580 | 500,654 | 491,459 | 484,162 | 495,614 | 493,976 | 470,512 | ||||||||||||||||||||
GAAP tax equivalent: | ||||||||||||||||||||||||||||
Yield on earning assets | % | 6.83 | 6.81 | 6.58 | 6.39 | 6.29 | 6.65 | 5.96 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 3.62 | 3.52 | 3.14 | 3.06 | 2.97 | 3.34 | 2.65 | ||||||||||||||||||||
Interest spread | % | 3.21 | 3.29 | 3.44 | 3.33 | 3.32 | 3.31 | 3.31 | ||||||||||||||||||||
Net interest margin | % | 3.96 | 4.04 | 4.17 | 4.02 | 3.96 | 4.04 | 3.85 | ||||||||||||||||||||
Operating tax equivalent (2): | ||||||||||||||||||||||||||||
Yield on earning assets | % | 6.83 | 6.81 | 6.58 | 6.36 | 6.24 | 6.65 | 5.94 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 3.62 | 3.52 | 3.14 | 2.92 | 2.80 | 3.31 | 2.51 | ||||||||||||||||||||
Interest spread | % | 3.21 | 3.29 | 3.44 | 3.44 | 3.44 | 3.34 | 3.43 | ||||||||||||||||||||
Net interest margin | % | 3.96 | 4.04 | 4.17 | 4.11 | 4.05 | 4.07 | 3.95 | ||||||||||||||||||||
GAAP: | ||||||||||||||||||||||||||||
Efficiency ratio | % | 86.94 | 84.34 | 80.10 | 82.54 | 94.04 | 83.50 | 75.07 | ||||||||||||||||||||
Return on average tangible assets | % | 0.24 | 0.65 | 0.87 | 0.68 | 0.06 | 0.61 | 0.90 | ||||||||||||||||||||
Return on average tangible equity | % | 2.86 | 7.86 | 10.34 | 8.40 | 0.72 | 7.35 | 11.86 | ||||||||||||||||||||
Operating (1): | ||||||||||||||||||||||||||||
Efficiency ratio | % | 86.94 | 84.34 | 79.92 | 82.46 | 81.63 | 83.08 | 70.81 | ||||||||||||||||||||
Return on average tangible assets | % | 0.24 | 0.65 | 0.87 | 0.70 | 0.74 | 0.61 | 1.13 | ||||||||||||||||||||
Return on average tangible equity | % | 2.86 | 7.86 | 10.31 | 8.39 | 8.79 | 7.34 | 14.50 | ||||||||||||||||||||
Earning assets repricing: | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 52 | 52 | 52 | 55 | 54 | ||||||||||||||||||||||
Percent of earning assets that have variable rates | % | 48 | 48 | 48 | 45 | 46 | ||||||||||||||||||||||
One year Gap | % | (4 | ) | (4 | ) | (2 | ) | 9 | 7 |
(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) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,595,920 | 4,638,215 | 4,484,764 | 4,409,971 | 4,483,142 | ||||||||||||||
Loan participations sold (1) | — | — | — | 111,754 | 138,270 | |||||||||||||||
Held to maturity securities | 475,790 | 479,859 | 470,994 | 396,251 | 427,575 | |||||||||||||||
Available for sale securities | 559,629 | 568,699 | 569,618 | 567,664 | 578,913 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 6,834 | 7,221 | 7,608 | 7,995 | 8,395 | |||||||||||||||
Other assets | 478,460 | 418,551 | 445,454 | 436,490 | 402,546 | |||||||||||||||
Total assets | $ | 6,187,122 | 6,183,034 | 6,048,927 | 6,000,614 | 6,109,330 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 995,930 | 1,011,531 | 1,119,608 | 1,152,365 | 1,019,992 | ||||||||||||||
NOW | 779,383 | 723,211 | 747,437 | 790,225 | 755,708 | |||||||||||||||
Savings | 465,172 | 370,169 | 372,212 | 351,839 | 313,889 | |||||||||||||||
Total low cost deposits | 2,240,485 | 2,104,911 | 2,239,257 | 2,294,429 | 2,089,589 | |||||||||||||||
Money market | 677,642 | 695,591 | 740,192 | 806,871 | 846,441 | |||||||||||||||
Certificate of deposits | 948,919 | 874,956 | 855,561 | 859,470 | 816,689 | |||||||||||||||
Total deposits | 3,867,046 | 3,675,458 | 3,835,010 | 3,960,770 | 3,752,719 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,517,058 | 1,687,062 | 1,127,065 | 1,085,914 | 1,283,532 | |||||||||||||||
Short term borrowings | 138,686 | 144,722 | 428,942 | 179,850 | 261,154 | |||||||||||||||
Secured borrowings (1) | — | — | — | 111,754 | 138,270 | |||||||||||||||
Long term debt | 29,923 | 30,192 | 37,378 | 36,832 | 39,092 | |||||||||||||||
Other liabilities | 68,460 | 81,437 | 68,641 | 74,771 | 89,834 | |||||||||||||||
Total liabilities | 5,621,173 | 5,618,871 | 5,497,036 | 5,449,891 | 5,564,601 | |||||||||||||||
Stockholder’s equity | 565,949 | 564,163 | 551,891 | 550,723 | 544,729 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,187,122 | 6,183,034 | 6,048,927 | 6,000,614 | 6,109,330 | ||||||||||||||
(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 | ||||||||||||||||||||||||
December 31, 2006 | December 31, 2005 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
( in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,176,047 | 29,212 | 5.37 | % | $ | 2,115,899 | 26,210 | 4.95 | % | ||||||||||||||
Commercial real estate | 1,462,005 | 31,245 | 8.55 | 1,572,432 | 30,773 | 7.83 | ||||||||||||||||||
Loan participations sold | — | — | — | 134,081 | 2,862 | 8.47 | ||||||||||||||||||
Consumer | 584,972 | 11,321 | 7.74 | 538,321 | 8,972 | 6.67 | ||||||||||||||||||
Commercial business | 155,884 | 3,515 | 9.02 | 93,412 | 2,044 | 8.75 | ||||||||||||||||||
Small business | 276,103 | 5,725 | 8.29 | 226,153 | 4,542 | 8.03 | ||||||||||||||||||
Total loans | 4,655,011 | 81,018 | 6.96 | 4,680,298 | 75,403 | 6.44 | ||||||||||||||||||
Investments — tax exempt | 397,105 | 5,806 | (1) | 5.85 | 386,073 | 5,615 | (1) | 5.82 | ||||||||||||||||
Investments — taxable | 649,947 | 10,512 | 6.47 | 643,436 | 8,779 | 5.46 | ||||||||||||||||||
Total interest earning assets | 5,702,063 | 97,336 | 6.83 | % | 5,709,807 | 89,797 | 6.29 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 77,524 | 79,092 | ||||||||||||||||||||||
Other non-interest earning assets | 384,516 | 343,890 | ||||||||||||||||||||||
Total Assets | $ | 6,164,103 | $ | 6,132,789 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 413,239 | 1,379 | 1.32 | % | $ | 309,007 | 281 | 0.36 | % | ||||||||||||||
NOW | 735,164 | 1,327 | 0.72 | 692,128 | 866 | 0.50 | ||||||||||||||||||
Money market | 694,057 | 4,003 | 2.29 | 887,858 | 3,902 | 1.74 | ||||||||||||||||||
Certificate of deposit | 927,431 | 10,549 | 4.51 | 797,187 | 6,687 | 3.33 | ||||||||||||||||||
Total interest bearing deposits | 2,769,891 | 17,258 | 2.47 | 2,686,180 | 11,736 | 1.73 | ||||||||||||||||||
Short-term borrowed funds | 192,532 | 2,548 | 5.25 | 282,474 | 2,805 | 3.94 | ||||||||||||||||||
Advances from FHLB | 1,528,039 | 20,837 | 5.41 | 1,345,033 | 15,565 | 4.59 | ||||||||||||||||||
Secured borrowings | — | — | — | 134,081 | 2,862 | 8.47 | ||||||||||||||||||
Long-term debt | 29,870 | 643 | 8.54 | 37,649 | 617 | 6.50 | ||||||||||||||||||
Total interest bearing liabilities | 4,520,332 | 41,286 | 3.62 | 4,485,417 | 33,585 | 2.97 | ||||||||||||||||||
Demand deposits | 1,006,959 | 1,018,169 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 62,601 | 63,021 | ||||||||||||||||||||||
Total Liabilities | 5,589,892 | 5,566,607 | ||||||||||||||||||||||
Stockholder’s equity | 574,211 | 566,182 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,164,103 | $ | 6,132,789 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | 56,050 | 3.21 | % | 56,212 | 3.32 | % | ||||||||||||||||||
Tax equivalent adjustment | (2,032 | ) | (1,965 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | 85 | 513 | ||||||||||||||||||||||
Net interest income | 54,103 | 54,760 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.83 | % | 6.29 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.87 | 2.33 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.96 | % | 3.96 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 3.96 | % | 4.05 | % | ||||||||||||||||||||
(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 Years Ended | ||||||||||||||||||||||||
December 31, 2006 | December 31, 2005 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,099,664 | 109,103 | 5.20 | % | $ | 2,177,432 | 106,992 | 4.91 | % | ||||||||||||||
Commercial real estate | 1,499,388 | 126,019 | 8.40 | 1,674,033 | 120,235 | 7.18 | ||||||||||||||||||
Loan participations sold | 30,894 | 2,401 | 7.77 | 154,524 | 10,144 | 6.56 | ||||||||||||||||||
Consumer | 558,769 | 41,997 | 7.52 | 514,822 | 31,348 | 6.09 | ||||||||||||||||||
Commercial business | 140,465 | 12,452 | 8.86 | 94,420 | 7,455 | 7.90 | ||||||||||||||||||
Small business | 259,816 | 20,988 | 8.08 | 211,371 | 16,520 | 7.82 | ||||||||||||||||||
Total loans | 4,588,996 | 312,960 | 6.82 | 4,826,602 | 292,694 | 6.06 | ||||||||||||||||||
Investments — tax exempt | 396,539 | 23,162 | (1) | 5.84 | 368,807 | 21,391 | (1) | 5.80 | ||||||||||||||||
Investments — taxable | 620,737 | 36,934 | 5.95 | 702,554 | 37,201 | 5.30 | ||||||||||||||||||
Total interest earning assets | 5,606,272 | 373,056 | 6.65 | % | 5,897,963 | 351,286 | 5.96 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 78,104 | 79,714 | ||||||||||||||||||||||
Other non-interest earning assets | 370,192 | 309,472 | ||||||||||||||||||||||
Total Assets | $ | 6,054,568 | $ | 6,287,149 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 369,504 | 2,936 | 0.79 | % | $ | 298,867 | 909 | 0.30 | % | ||||||||||||||
NOW | 746,837 | 4,433 | 0.59 | 677,241 | 2,964 | 0.44 | ||||||||||||||||||
Money market | 755,221 | 15,980 | 2.12 | 904,941 | 13,629 | 1.51 | ||||||||||||||||||
Certificate of deposit | 868,777 | 35,610 | 4.10 | 784,525 | 22,582 | 2.88 | ||||||||||||||||||
Total deposits | 2,740,339 | 58,959 | 2.15 | 2,665,574 | 40,084 | 1.50 | ||||||||||||||||||
Short-term borrowed funds | 304,635 | 15,309 | 5.03 | 314,782 | 9,760 | 3.10 | ||||||||||||||||||
Advances from FHLB | 1,265,772 | 66,492 | 5.25 | 1,538,852 | 62,175 | 4.04 | ||||||||||||||||||
Secured borrowings | 30,894 | 2,401 | 7.77 | 154,524 | 10,144 | 6.56 | ||||||||||||||||||
Long-term debt | 35,393 | 3,112 | 8.79 | 36,526 | 2,440 | 6.68 | ||||||||||||||||||
Total interest bearing liabilities | 4,377,033 | 146,273 | 3.34 | 4,710,258 | 124,603 | 2.65 | ||||||||||||||||||
Demand deposits | 1,056,254 | 979,075 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 61,392 | 53,150 | ||||||||||||||||||||||
Total Liabilities | 5,494,679 | 5,742,483 | ||||||||||||||||||||||
Stockholder’s equity | 559,889 | 544,666 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,054,568 | $ | 6,287,149 | ||||||||||||||||||||
Net interest income/net interest spread | 226,783 | 3.31 | % | 226,683 | 3.31 | % | ||||||||||||||||||
Tax equivalent adjustment | (8,107 | ) | (7,487 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | 929 | 1,879 | ||||||||||||||||||||||
Net interest income | 219,605 | 221,075 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.65 | % | 5.96 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.61 | 2.11 | ||||||||||||||||||||||
Net interest margin | 4.04 | % | 3.85 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 4.07 | % | 3.95 | % | ||||||||||||||||||||
(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
For the Three Months Ended | For the Years Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 42,517 | 42,012 | 41,889 | 41,192 | 40,695 | 41,192 | 46,010 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | — | (111 | ) | (60 | ) | (68 | ) | (8 | ) | (239 | ) | (453 | ) | |||||||||||||||
Commercial real estate | (7,000 | ) | — | — | — | — | (7,000 | ) | — | |||||||||||||||||||
Commercial business | — | — | (22 | ) | (12 | ) | (119 | ) | (34 | ) | (1,138 | ) | ||||||||||||||||
Consumer | (209 | ) | (232 | ) | (39 | ) | (201 | ) | (91 | ) | (681 | ) | (339 | ) | ||||||||||||||
Small business | (544 | ) | (93 | ) | (229 | ) | (85 | ) | (102 | ) | (951 | ) | (764 | ) | ||||||||||||||
Total charge-offs | (7,753 | ) | (436 | ) | (350 | ) | (366 | ) | (320 | ) | (8,905 | ) | (2,694 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | — | 170 | — | 178 | 9 | 348 | 65 | |||||||||||||||||||||
Commercial real estate | — | 10 | — | 9 | — | 19 | — | |||||||||||||||||||||
Commercial business | 379 | 54 | 116 | 111 | 306 | 660 | 1,122 | |||||||||||||||||||||
Consumer | 76 | 163 | 98 | 199 | 238 | 536 | 694 | |||||||||||||||||||||
Small business | 114 | 193 | 119 | 140 | 205 | 566 | 899 | |||||||||||||||||||||
Other | 109 | 80 | 160 | 263 | 168 | 612 | 1,711 | |||||||||||||||||||||
Total recoveries | 678 | 670 | 493 | 900 | 926 | 2,741 | 4,491 | |||||||||||||||||||||
Net (charge-offs) recoveries | (7,075 | ) | 234 | 143 | 534 | 606 | (6,164 | ) | 1,797 | |||||||||||||||||||
Provision (recovery from) loan losses | 8,160 | 271 | (20 | ) | 163 | (109 | ) | 8,574 | (6,615 | ) | ||||||||||||||||||
Ending balance | $ | 43,602 | 42,517 | 42,012 | 41,889 | 41,192 | 43,602 | 41,192 | ||||||||||||||||||||
Annualized net charge-offs (recoveries) to average loans | % | 0.61 | (0.02 | ) | (0.01 | ) | (0.05 | ) | (0.05 | ) | 0.13 | (0.04 | ) | |||||||||||||||
As of | ||||||||||||||||||||
12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 4,436 | 32,895 | 5,349 | 6,101 | 6,801 | ||||||||||||||
Nonaccrual tax certificates | 631 | 760 | 857 | 685 | 388 | |||||||||||||||
Real estate owned | 21,747 | 1,439 | 1,907 | 1,647 | 967 | |||||||||||||||
Other repossessed assets | — | — | — | — | — | |||||||||||||||
Total nonperforming assets | $ | 26,814 | 35,094 | 8,113 | 8,433 | 8,156 | ||||||||||||||
Nonperforming assets to total loans and other assets | % | 0.55 | 0.72 | 0.17 | 0.18 | 0.17 | ||||||||||||||
Allowance for loan losses to total loans | % | 0.94 | 0.91 | 0.93 | 0.94 | 0.91 | ||||||||||||||
Provision (recovery) to average loans | % | 0.70 | 0.02 | (0.00 | ) | 0.01 | (0.01 | ) | ||||||||||||
Allowance to nonperforming loans | % | 982.91 | 129.25 | 785.42 | 686.59 | 605.68 |
(1) | Average and total loans exclude loan participations sold financed by secured borrowings. |
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
Condensed Statements of Operations — Unaudited
For the Three Months Ended | For the Years Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||||||||||
Net interest (expense) | $ | (4,952 | ) | (5,117 | ) | (4,798 | ) | (4,618 | ) | (4,583 | ) | (19,485 | ) | (17,090 | ) | |||||||||||||
Non-Interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 270 | 266 | 278 | 820 | 211 | 1,634 | 621 | |||||||||||||||||||||
Securities activities, net | 2,000 | 2,243 | 2,372 | 2,541 | 475 | 9,156 | 731 | |||||||||||||||||||||
Other | — | — | — | — | 514 | — | 1,172 | |||||||||||||||||||||
Non-interest income | 2,270 | 2,509 | 2,650 | 3,361 | 1,200 | 10,790 | 2,524 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 1,050 | 1,107 | 1,061 | 1,487 | 1,048 | 4,705 | 4,047 | |||||||||||||||||||||
Advertising and promotion | 70 | 49 | 195 | 94 | 123 | 408 | 421 | |||||||||||||||||||||
Professional fees | 56 | 212 | 264 | 106 | 28 | 638 | 1,179 | |||||||||||||||||||||
Other | 194 | 243 | 297 | 271 | 153 | 1,005 | 516 | |||||||||||||||||||||
Non-interest expense | 1,370 | 1,611 | 1,817 | 1,958 | 1,352 | 6,756 | 6,163 | |||||||||||||||||||||
Loss from parent company activities before income taxes | (4,052 | ) | (4,219 | ) | (3,965 | ) | (3,215 | ) | (4,735 | ) | (15,451 | ) | (20,729 | ) | ||||||||||||||
Benefit for income taxes | (1,484 | ) | (1,748 | ) | (1,702 | ) | (1,074 | ) | (1,673 | ) | (6,008 | ) | (7,435 | ) | ||||||||||||||
Net loss from parent company business segment | $ | (2,568 | ) | (2,471 | ) | (2,263 | ) | (2,141 | ) | (3,062 | ) | (9,443 | ) | (13,294 | ) | |||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 4,852 | 2,246 | 8,796 | 4,933 | 7,342 | ||||||||||||||
Securities | 103,218 | 101,621 | 99,486 | 112,006 | 104,602 | |||||||||||||||
Investment in subsidiaries | 661,467 | 662,224 | 654,651 | 655,609 | 651,078 | |||||||||||||||
Investment in unconsolidated subsidiaries | 11,996 | 11,996 | 11,996 | 11,996 | 12,464 | |||||||||||||||
Other assets | 12,198 | 12,256 | 10,716 | 7,383 | 8,210 | |||||||||||||||
Total assets | $ | 793,731 | 790,343 | 785,645 | 791,927 | 783,696 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 263,266 | 263,266 | 263,266 | 268,266 | 263,266 | ||||||||||||||
Other liabilities | 5,483 | 4,544 | 3,881 | 4,047 | 4,094 | |||||||||||||||
Total liabilities | 268,749 | 267,810 | 267,147 | 272,313 | 267,360 | |||||||||||||||
Stockholders’ equity | 524,982 | 522,533 | 518,498 | 519,614 | 516,336 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 793,731 | 790,343 | 785,645 | 791,927 | 783,696 | ||||||||||||||
Ryan Beck & Co., Inc. Business Segment (Discontinued Operations)
Consolidated Statements of Operations and Statistics — Unaudited
Consolidated Statements of Operations and Statistics — Unaudited
For the Three Months Ended | For the Years Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Retail brokerage | $ | 39,186 | 33,778 | 36,209 | 39,490 | 36,093 | 148,663 | 148,379 | ||||||||||||||||||||
Capital markets activities | 12,012 | 14,583 | 14,489 | 13,747 | 10,346 | 54,831 | 47,609 | |||||||||||||||||||||
Investment banking activities | 3,016 | 2,238 | 3,384 | 2,917 | 5,242 | 11,555 | 50,042 | |||||||||||||||||||||
Other | 1,014 | (1,538 | ) | 1,290 | 2,646 | 2,469 | 3,412 | 7,281 | ||||||||||||||||||||
Total operating revenues | 55,228 | 49,061 | 55,372 | 58,800 | 54,150 | 218,461 | 253,311 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Employee compensation and benefits | 42,874 | 40,943 | 42,433 | 44,355 | 37,764 | 170,605 | 165,325 | |||||||||||||||||||||
Occupancy and equipment | 4,421 | 4,369 | 3,927 | 3,871 | 3,887 | 16,588 | 15,816 | |||||||||||||||||||||
Advertising and promotion | 1,416 | 1,479 | 1,326 | 1,567 | 1,333 | 5,788 | 5,418 | |||||||||||||||||||||
Professional fees | 2,046 | 2,888 | 1,905 | 1,951 | 2,287 | 8,790 | 6,706 | |||||||||||||||||||||
Communications | 3,831 | 3,472 | 3,930 | 3,954 | 3,470 | 15,187 | 13,554 | |||||||||||||||||||||
Floor broker and clearing fees | 1,928 | 1,823 | 2,142 | 2,719 | 2,433 | 8,612 | 9,118 | |||||||||||||||||||||
Interest expense | 1,424 | 1,436 | 1,514 | 1,621 | 1,130 | 5,995 | 3,419 | |||||||||||||||||||||
Other | 1,787 | 598 | 2,086 | 1,918 | 1,828 | 6,389 | 7,204 | |||||||||||||||||||||
Total expenses | 59,727 | 57,008 | 59,263 | 61,956 | 54,132 | 237,954 | 226,560 | |||||||||||||||||||||
Income (loss) from Ryan Beck business segment — before income taxes | (4,499 | ) | (7,947 | ) | (3,891 | ) | (3,156 | ) | 18 | (19,493 | ) | 26,751 | ||||||||||||||||
Provision (benefit) for income taxes | (1,781 | ) | (3,105 | ) | (1,524 | ) | (1,591 | ) | (654 | ) | (8,001 | ) | 10,095 | |||||||||||||||
Net income (loss) from Ryan Beck business segment | $ | (2,718 | ) | (4,842 | ) | (2,367 | ) | (1,565 | ) | 672 | (11,492 | ) | 16,656 | |||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Average tangible assets | $ | 206,924 | 236,129 | 238,827 | 231,145 | 220,065 | 228,256 | 197,083 | ||||||||||||||||||||
Average tangible equity | 90,239 | 93,350 | 97,098 | 99,220 | 99,456 | 94,977 | 93,630 | |||||||||||||||||||||
GAAP return on average tangible assets | % | (5.25 | ) | (8.20 | ) | (3.96 | ) | (2.71 | ) | 1.22 | (5.03 | ) | 8.45 | |||||||||||||||
GAAP return on average tangible equity | (12.05 | ) | (20.75 | ) | (9.75 | ) | (6.31 | ) | 2.70 | (12.10 | ) | 17.79 | ||||||||||||||||
Compensation as a percent of revenues | 77.63 | 83.45 | 76.63 | 75.43 | 69.74 | 78.09 | 65.27 | |||||||||||||||||||||
Retail brokerage to total revenues | 70.95 | 68.85 | 65.39 | 67.16 | 66.65 | 68.05 | 58.58 | |||||||||||||||||||||
Capital markets activities to total revenues | 21.75 | 29.72 | 26.17 | 23.38 | 19.11 | 25.10 | 18.79 | |||||||||||||||||||||
Investment banking revenue to total revenues | 5.46 | 4.56 | 6.11 | 4.96 | 9.68 | 5.29 | 19.76 |
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 3,285 | 12,153 | 3,799 | 3,396 | 5,366 | ||||||||||||||
Securities | 109,838 | 186,588 | 174,657 | 169,570 | 180,292 | |||||||||||||||
Notes receivable — GMS | — | — | — | 3,018 | 3,360 | |||||||||||||||
Property and equipment, net | 9,644 | 9,935 | 8,307 | 7,629 | 7,573 | |||||||||||||||
Goodwill | 6,184 | 6,184 | 6,184 | 6,184 | 6,184 | |||||||||||||||
Due from clearing agent | 18,173 | 13,579 | 3,963 | 2,672 | — | |||||||||||||||
Other assets | 43,639 | 41,041 | 41,650 | 37,916 | 37,334 | |||||||||||||||
Total assets | $ | 190,763 | 269,480 | 238,560 | 230,385 | 240,109 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Securities sold not yet purchased | $ | 31,407 | 68,820 | 39,173 | 41,828 | 35,177 | ||||||||||||||
Due to clearing agent | 0 | 40,842 | 38,730 | 32,206 | 24,486 | |||||||||||||||
Other liabilities | 63,839 | 61,760 | 57,899 | 51,465 | 74,100 | |||||||||||||||
Total liabilities | 95,246 | 171,422 | 135,802 | 125,499 | 133,763 | |||||||||||||||
Stockholder’s equity | 95,517 | 98,058 | 102,758 | 104,886 | 106,346 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 190,763 | 269,480 | 238,560 | 230,385 | 240,109 | ||||||||||||||
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DEMAND DEPOSITS OF TOTAL DEPOSITS 25.8% 27.5% 29.2% 29.1% 27.2% 27.6% 2 8.2% 6.3% AR '05 JUN '05SEP '05DEC '05MAR '06JUN '06SEP '06DEC '06 CORE DEPOSITS* OF TOTAL DEPOSITS 57.9% 57.3% 58.4% 57.9% 55.7% 54.0% 54.3% 53.1% AR '05 JUN '05SEP '05DEC '05MAR '06JUN '06SEP '06DEC '06 E DEPOSIT1 GROWTH E"2 YEAR-OVER-YEAR CHANGE 6.6% 6.0% 10.2% 16.6% 16.9% 23.1% 23.5% JUN '05 SEP '05DEC '05MAR '06JUN '06SEP '06DEC '06 3 |