UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)April 25, 2007
BankAtlantic Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Florida | 34-027228 | 65-0507804 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
2100 West Cypress Creek Road Ft. Lauderdale, Florida | 33309 | |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code954-940-5000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c)) |
Item 2.02. Results of Operations and Financial Condition
The information in this item (including Exhibit 99.1) is being furnished pursuant to Items 2.02 and 9.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act. On April 25, 2007, BankAtlantic Bancorp, Inc. (the Company”) issued a press release announcing its financial results for the quarter ended March 31, 2007. The press release and accompanying financial tables are attached hereto as Exhibit 99.1 and are incorporated herein by reference. In addition to financial results determined in accordance with generally accepted accounting principles (“GAAP”), the press release also contains financial information that uses the Company’s internal allocation measures to determine net contribution and non-interest expense allocable to new bank branches (which we refer to as stores). The Company believes that these non-GAAP operating measures supplement our GAAP financial information and provide useful measures of evaluating the Company’s operating results and any related trends that may be affecting the Company’s business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Item 9.01 Financial Statements and Exhibits
(c) Press Release dated April 25, 2007
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 25, 2007
BANKATLANTIC BANCORP, INC. | ||||
By: | /s/ James A. White | |||
James A. White | ||||
Executive Vice President - - Chief Financial Officer | ||||
BankAtlantic Bancorp Reports Financial Results for First Quarter, 2007
FORT LAUDERDALE, Florida — April 25, 2007 — BankAtlantic Bancorp, Inc. (NYSE: BBX), reported financial results for the quarter ended March 31, 2007. Net income for the first quarter of 2007 was $5.7 million, or $0.09 per diluted share, compared to $6.5 million, or $0.10 per diluted share reported for the first quarter of 2006. The Company recorded a loss from continuing operations of ($2.2) million, or ($0.04) per diluted share, compared to income from continuing operations of $8.0 million, or $0.13 per diluted share for the first quarter of 2006.
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “During the quarter, over 79,000 new customer accounts joined BankAtlantic as we celebrated the Company’s 55th birthday and fifth anniversary as‘Florida’s Most Convenient Bank’. We also experienced continued core deposit growth and were successful in achieving our goals in our new ‘store expansion program’, including our entry into the Orlando market. As previously announced, we’ve pursued expense management initiatives with a focus on reducing operational expenses.
“While we believe Florida remains a very attractive market, Florida’s real estate market has slowed significantly, and we are facing the challenges associated with this slowdown. As discussed later in this release, we experienced an increase in non-accrual loans in our residential real estate development portfolio during the quarter and expect that we may experience further deterioration in the portfolio during 2007. Additionally, because of the flat yield curve, we are experiencing, along with the rest of the industry, slower deposit growth and margin compression.
“We continue to believe the Florida market is resilient and that organic deposit growth and aggressive new store openings will build a broad foundation for the future, yielding long-term franchise and shareholder value.”
Accomplishments and highlights include:
BankAtlantic
BankAtlantic
Store Expansion Program— BankAtlantic’s Chief Executive Officer and President, Jarett S. Levan, commented, “During the first quarter of 2007, BankAtlantic marked its fifth anniversary as‘Florida’s Most Convenient Bank’with the grand opening of five new stores, including its first two stores in the greater Orlando area. We have opened a total of 22 new stores since January 1, 2005, accounting for $136 million in core deposit and $227 million in total deposit balances respectively. In the first quarter of 2007, the new stores generated $44 million of core deposit balance growth and over 25,000 core deposit accounts. We continue to be very pleased with these new stores, which on average have met or exceeded our goals in core deposit balances in their first year and to ‘breakeven’ on a current earnings basis in 12-15 months. As of quarter-end, we had a total of 93 stores throughout Florida.
“Due to the time required for newly opened stores to breakeven, the expenses associated with BankAtlantic’s ‘store expansion program’ negatively impacted BankAtlantic’s first quarter results by $2.7 million after tax, and increased the efficiency ratio by approximately 550 basis points. We anticipate that the expansion program will have a negative impact on 2007 net income by approximately $8.2 million. However, we believe this continued investment 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, and will continue to contribute to the overall franchise value.
Core Deposit Accounts and Balances— “We are pleased with the core deposit growth achieved during the quarter, particularly in light of continued competitive and economic pressures. The quarter’s growth in total bank core deposit balances was $189.0 million, or 8.4% over the fourth quarter of 2006. At quarter end, ‘total bank’ and ‘same store’ core deposit balances increased 5.9% and 5.0%, respectively, compared with the first quarter of 2006, representing a total bank net increase of $135.1 million in core deposit balances. In the first quarter of 2007, BankAtlantic opened over 79,000 new core deposit accounts, which represent an increase of 3.6% over the number of accounts opened in the corresponding 2006 period and an increase of 8.5% from the immediately preceding quarter. Core deposit balances now represent 59.5% of total deposits, up from 57.9% in the comparable 2006 period.
Net Income —“For the first quarter of 2007, the Bank’s net income was $0.6 million, down from $10.2 million in the comparable 2006 quarter. As discussed in detail in subsequent sections of this release, the reduction was caused primarily by net interest margin compression, combined with an increased loan loss provision. Both factors reflect current economic conditions impacting our business. Net income was also negatively impacted by the expenses associated with the ‘store expansion program’, as well as the costs associated with our steps to reduce personnel expense.
Credit Quality —“During the first quarter of 2007, non-accrual loans increased $19.6 million from the first quarter of 2006, the majority of which related to residential land acquisition and development loans in our commercial real estate loan portfolio. As a result, the ratio of non-performing loans to total loans increased from 0.14% at March 31, 2006 to 0.55% at March 31, 2007. The provision for loan losses in the first quarter of 2007 was $7.5 million, or 0.64% of average loans (annualized) versus $0.2 million, or 0.01% for the first quarter of 2006. The allowance for loan losses increased $8.5 million from $41.9 million (0.94% of total loans) at March 31, 2006 to $50.4 million (1.08% of total loans) at March 31, 2007; and the ratio of allowance for loan losses to non-performing loans stood at 196% at March 31, 2007.
“The current environment for residential land acquisition and development loans is a concern, particularly in Florida, and represents an area where we remain very cautious in our credit management. In view of market conditions, we anticipate we may experience further deterioration in the portfolio over the next several quarters as the market attempts to absorb an oversupply of available lot inventory.
“On the other hand, we remain pleased with the performance of our purchased residential mortgage portfolio, which was approximately $2.1 billion at quarter-end, representing 38.2% of earning assets. The portfolio has no sub-prime or negative amortizing loans, and each loan is individually underwritten prior to purchase. The portfolio’s average FICO score is 736, and delinquency at quarter-end was approximately 30 basis points.
Net Interest Margin and Earning Assets— “Net interest income for the first quarter of 2007 was $52.1 million compared to $55.1 million in the corresponding 2006 quarter, reflecting a 1.3% increase in earning assets combined with a 24 basis point decline in the tax equivalent net interest margin. Average earning assets increased $75.2 million, while average core deposits and total deposits increased $132.6 million and $71.1 million respectively. The period-end ratio of borrowings to deposits and borrowings declined in the first quarter of 2007 to 26.4%, from 30.4% in the fourth quarter of 2006.
“The tax equivalent net interest margin was 3.78% in the first quarter of 2007, down from 4.11% in the corresponding quarter of 2006. While earning asset yields improved 32 basis points, the cost of interest bearing liabilities increased 59 basis points, reflecting the growth in higher cost deposit categories and the impact of balance growth within our tiered-pricing structure. Future improvement in net interest margin is challenged by a protracted flatness of the yield curve, recent increases in non-accrual assets and growth dynamics impacting the mix of both interest bearing liabilities and earning assets (All references to net interest margin and earning assets exclude loan participations sold previously recognized as secured borrowings).
Non-interest income —“Non-interest income for the first quarter was $35.0 million, or 29.8% greater than the comparable 2006 period. Additionally, fee income as a percent of total revenues rose to 36.3% in the first quarter of 2007 compared to 30.8% in 2006, reflecting the increase in transaction accounts, and the increasing base of revenues not directly impacted by the interest rate environment.
Non-interest expense — “Non-interest expense for the first quarter of 2007 was $76.2 million, before one-time charges of $2.6 million related to a reduction in staff in the first quarter, $8.4 million greater than the corresponding quarter of 2006, and $2.3 million less than the fourth quarter of 2006. The increase in expenses is primarily related to the ‘store expansion program’. As discussed in this release, we anticipate that the impact of the staff reductions and the reduced marketing expenditures will be fully effective starting the second quarter of 2007.
Expense Management —“During the quarter, we’ve worked to reduce our operating expenses without impacting the ‘store expansion program’ or affecting our customer service standards. We reduced our workforce by approximately 225 associates, or 8%. The quarter’s results include the $2.6 million charge associated with this workforce reduction. The expected annualized compensation and benefits savings is approximately $10 million. The impact will begin to be fully reflected in the results for the second quarter. As noted earlier, marketing expenses were also reduced in the quarter and should approximate our 2005 levels. We continue to explore opportunities for expense savings throughout the organization,” concluded Jarett S. Levan.
BankAtlantic Bancorp:
As previously announced, during the quarter, BankAtlantic Bancorp completed the sale of Ryan Beck Holdings, Inc. (Ryan Beck) to Stifel Financial Corp. (NYSE:SF) in a tax-free transaction. Income from discontinued operations includes a gain of $16.5 million on that transaction. Net of the operating loss of Ryan Beck prior to its sale, we recorded after-tax income of $7.9 million from Ryan Beck. A significant portion of the loss at Ryan Beck prior to the sale is related to one-time charges directly tied to this sale.
As previously announced, during the quarter, BankAtlantic Bancorp completed the sale of Ryan Beck Holdings, Inc. (Ryan Beck) to Stifel Financial Corp. (NYSE:SF) in a tax-free transaction. Income from discontinued operations includes a gain of $16.5 million on that transaction. Net of the operating loss of Ryan Beck prior to its sale, we recorded after-tax income of $7.9 million from Ryan Beck. A significant portion of the loss at Ryan Beck prior to the sale is related to one-time charges directly tied to this sale.
Additionally, as part of the sale of Ryan Beck, BankAtlantic Bancorp is to receive warrants to purchase approximately 482,000 shares of Stifel common stock at an exercise price of $36.00 per share. The warrants are accounted for as derivatives, and accordingly changes in value are reflected in earnings. We recorded a $1.5 million loss associated with the change in value of the warrants resulting from a decline in Stifel stock price from the time of acquisition to the March 31, 2007 period-end.
As part of our ongoing stock buyback program, BankAtlantic Bancorp repurchased 1.3 million shares during the first quarter of 2007.
Further, 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 April 4, 2007. The first quarter’s dividend declaration marked BankAtlantic Bancorp’s 55th consecutive quarterly dividend payment.
Financial Highlights:
First Quarter, 2007 Compared to First Quarter, 2006
BankAtlantic Bancorp — consolidated:
• | Net income of $5.7 million vs. $6.5 million, a decrease of 11.5% | ||
• | Diluted earnings per share of $0.09 vs $0.10, a decrease of 10% | ||
• | Loss from continuing operations of ($2.2) million vs. income from continuing operations of $8.0 million | ||
• | Diluted loss per share from continuing operations of ($0.04) vs. diluted earnings per share from continuing operations of $0.13 | ||
• | Return on average tangible equity from continuing operations was (1.96%) | ||
• | Book value per share at March 31, 2007 was $8.61 |
BankAtlantic:
• | Business segment net income was $639,000 vs. $10.2 million | ||
• | Over 79,000 new core deposit accounts opened, an increase of 3.6% over accounts opened in the corresponding 2006 quarter, with related new balances of $235.8 million | ||
• | Return on average tangible assets was 0.04% | ||
• | Return on average tangible equity was 0.51% | ||
• | Tax equivalent net interest margin was 3.78% | ||
• | Non-interest income was $35.0 million vs. $27.0 million, an increase of 29.8% | ||
• | Non-interest expense before the one-time severance charge was $76.2 million vs. $67.8 million, an increase of 12.4% |
- — - — - — - — - -
BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Thursday, April 26, 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 number5054519.
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, May 10, 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 is5054519.
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=38962. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Thursday, May 10, 2007.
BankAtlantic Bancorp’s first quarter, 2007 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 first quarter, 2007 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. BankAtlantic Bancorp owned Ryan Beck Holdings, Inc. (“Ryan Beck”), a subsidiary engaged in retail and institutional brokerage and investment banking. On March 1, 2007, BankAtlantic Bancorp announced that it had completed the sale of Ryan Beck to Stifel Financial Corp. 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. BankAtlantic Bancorp owned Ryan Beck Holdings, Inc. (“Ryan Beck”), a subsidiary engaged in retail and institutional brokerage and investment banking. On March 1, 2007, BankAtlantic Bancorp announced that it had completed the sale of Ryan Beck to Stifel Financial Corp. 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 currently has 93 stores and operates more than 200 conveniently located ATMs.
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 currently has 93 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.
For further information, please visit our websites:
www.BankAtlanticBancorp.com
www.BankAtlantic.com
www.BankAtlanticBancorp.com
www.BankAtlantic.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
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.
# # #
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; the quality of our residential land acquisition and development loans and conditions specifically in that market sector; 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. Additionally, we acquired a significant investment in Stifel equity securities in connection with the Ryan Beck Holdings, Inc. sale subjecting us to the risk of the value of Stifel shares and warrants received varying 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.
BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)
Summary of Selected Financial Data (unaudited)
For The Three Months Ended | ||||||||||||||||||||||||
3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | ||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||
Net (loss) income from continuing operations | $ | (2,204 | ) | 1,048 | 7,366 | 10,443 | 8,022 | |||||||||||||||||
Net (loss) income | $ | 5,716 | (1,670 | ) | 2,524 | 8,076 | 6,457 | |||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||
Basic | 60,635 | 61,007 | 61,046 | 61,324 | 61,005 | |||||||||||||||||||
Diluted | 60,635 | 62,278 | 62,412 | 62,820 | 62,761 | |||||||||||||||||||
Key Performance Ratios | ||||||||||||||||||||||||
Basic (loss) earnings per share from continuing operations | $ | (0.04 | ) | 0.02 | 0.12 | 0.17 | 0.13 | |||||||||||||||||
Diluted (loss) earnings per share from continuing operations | $ | (0.04 | ) | 0.02 | 0.12 | 0.17 | 0.13 | |||||||||||||||||
Basic earnings (loss) per share | $ | 0.09 | (0.03 | ) | 0.04 | 0.13 | 0.11 | |||||||||||||||||
Diluted earnings (loss) per share | $ | 0.09 | (0.03 | ) | 0.04 | 0.13 | 0.10 | |||||||||||||||||
Return on average tangible assets from continuing operations | (note 1) | % | (0.14 | ) | 0.07 | 0.46 | 0.68 | 0.51 | ||||||||||||||||
Return on average tangible equity from continuing operations | (note 1) | % | (1.96 | ) | 0.92 | 6.52 | 9.27 | 7.24 | ||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||
Assets | $ | 6,439 | 6,520 | 6,467 | 6,272 | 6,388 | ||||||||||||||||||
Tangible assets | (note 1) | $ | 6,358 | 6,436 | 6,383 | 6,188 | 6,304 | |||||||||||||||||
Loans | $ | 4,651 | 4,655 | 4,611 | 4,479 | 4,610 | ||||||||||||||||||
Investments | $ | 1,142 | 1,141 | 1,151 | 1,084 | 1,082 | ||||||||||||||||||
Deposits and escrows | $ | 3,902 | 3,776 | 3,731 | 3,849 | 3,831 | ||||||||||||||||||
Stockholders’ equity | $ | 529 | 533 | 526 | 526 | 522 | ||||||||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 450 | 454 | 452 | 451 | 443 |
(1) | 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. | |
(2) | Loan participations sold accounted for as secured borrowings. |
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
Consolidated Statements of Financial Condition (unaudited)
March 31, | December 31, | March 31, | ||||||||||
(In thousands, except share data) | 2007 | 2006 | 2006 | |||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 130,184 | 138,904 | 176,072 | ||||||||
Securities available for sale (at fair value) | 666,733 | 651,316 | 670,683 | |||||||||
Investment securities held-to-maturity (approximate fair value: | ||||||||||||
$270,617, $209,020 and $205,000) | 273,040 | 206,682 | 207,137 | |||||||||
Financial instruments accounted for at fair value | 8,811 | — | — | |||||||||
Tax certificates net of allowance of $3,782, $3,699 and $3,513 | 157,062 | 195,391 | 135,114 | |||||||||
Loans receivable, net of allowance for loan losses of $50,373, $43,602 and $41,889 | 4,622,784 | 4,595,920 | 4,521,725 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 69,503 | 80,217 | 60,800 | |||||||||
Discontinued operations assets held for sale | — | 190,763 | 230,385 | |||||||||
Real estate held for development and sale | 27,031 | 25,333 | 22,347 | |||||||||
Real estate owned | 23,135 | 21,747 | 1,647 | |||||||||
Office properties and equipment, net | 229,810 | 219,717 | 163,057 | |||||||||
Goodwill and other intangible assets | 76,937 | 77,324 | 78,485 | |||||||||
Other assets | 95,146 | 92,348 | 90,663 | |||||||||
Total assets | $ | 6,380,176 | 6,495,662 | 6,358,115 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits | ||||||||||||
Demand | $ | 1,031,628 | 995,920 | 1,152,361 | ||||||||
NOW | 799,300 | 779,383 | 790,225 | |||||||||
Savings | 598,579 | 465,172 | 351,839 | |||||||||
Money market | 653,231 | 677,642 | 806,871 | |||||||||
Certificates of deposits | 1,002,284 | 948,919 | 859,470 | |||||||||
Total deposits | 4,085,022 | 3,867,036 | 3,960,766 | |||||||||
Advances from FHLB | 1,297,055 | 1,517,058 | 1,085,914 | |||||||||
Securities sold under agreements to repurchase | 76,711 | 101,932 | 94,434 | |||||||||
Federal funds purchased and other short term borrowings | 46,751 | 32,026 | 81,197 | |||||||||
Secured borrowings | — | — | 111,754 | |||||||||
Subordinated debentures, notes and bonds payable | 29,654 | 29,923 | 41,832 | |||||||||
Junior subordinated debentures | 263,266 | 263,266 | 263,266 | |||||||||
Discontinued operations liabilities held for sale | — | 95,246 | 125,499 | |||||||||
Other liabilities | 66,740 | 64,193 | 73,840 | |||||||||
Total liabilities | 5,865,199 | 5,970,680 | 5,838,502 | |||||||||
Stockholders’ equity: | ||||||||||||
Common stock | 600 | 611 | 613 | |||||||||
Additional paid-in capital | 247,755 | 260,460 | 262,626 | |||||||||
Retained earnings | 269,048 | 265,089 | 263,500 | |||||||||
Total stockholders’ equity before accumulated other comprehensive loss | 517,403 | 526,160 | 526,739 | |||||||||
Accumulated other comprehensive loss | (2,426 | ) | (1,178 | ) | (7,126 | ) | ||||||
Total stockholders’ equity | 514,977 | 524,982 | 519,613 | |||||||||
Total liabilities and stockholders’ equity | $ | 6,380,176 | 6,495,662 | 6,358,115 | ||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For The Three Months Ended | ||||||||||||||||||||
(in thousands) | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | |||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||
Interest and fees on loans | $ | 79,587 | 81,019 | 80,790 | 75,765 | 75,386 | ||||||||||||||
Interest on securities available for sale | 4,561 | 4,472 | 4,483 | 4,314 | 4,305 | |||||||||||||||
Interest on tax exempt securities | 3,796 | 3,817 | 3,804 | 3,862 | 3,806 | |||||||||||||||
Interest and dividends on taxable investments and tax certificates | 5,596 | 6,543 | 6,039 | 4,396 | 4,376 | |||||||||||||||
Total interest income | 93,540 | 95,851 | 95,116 | 88,337 | 87,873 | |||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||
Interest on deposits | 19,002 | 17,258 | 15,095 | 13,852 | 12,754 | |||||||||||||||
Interest on advances from FHLB | 18,723 | 20,837 | 18,509 | 13,007 | 14,139 | |||||||||||||||
Interest on short-term borrowed funds | 2,555 | 2,505 | 5,078 | 4,931 | 2,575 | |||||||||||||||
Interest on secured borrowings | — | — | — | — | 2,401 | |||||||||||||||
Interest on long-term debt | 6,114 | 6,184 | 6,521 | 6,377 | 5,963 | |||||||||||||||
Capitalized interest on real estate development | — | (85 | ) | (75 | ) | (289 | ) | (480 | ) | |||||||||||
Total interest expense | 46,394 | 46,699 | 45,128 | 37,878 | 37,352 | |||||||||||||||
NET INTEREST INCOME | 47,146 | 49,152 | 49,988 | 50,459 | 50,521 | |||||||||||||||
Provision for (recovery from) loan losses | 7,461 | 8,160 | 271 | (20 | ) | 163 | ||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 39,685 | 40,992 | 49,717 | 50,479 | 50,358 | |||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||
Service charges on deposits | 24,595 | 26,091 | 24,008 | 21,274 | 19,099 | |||||||||||||||
Other service charges and fees | 7,033 | 7,188 | 6,779 | 7,353 | 6,222 | |||||||||||||||
Securities activities, net | 1,555 | 2,199 | 2,243 | 2,830 | 2,541 | |||||||||||||||
Gain on sales of loans | 200 | 211 | 175 | 200 | 94 | |||||||||||||||
Gain associated with debt redemption | — | — | — | 1,092 | 436 | |||||||||||||||
Income (loss) from real estate operations | — | — | — | 114 | (1,096 | ) | ||||||||||||||
Income from unconsolidated subsidiaries | 1,146 | 303 | 266 | 278 | 820 | |||||||||||||||
(Loss) gain on the sale of office properties and equipment, net | (153 | ) | (148 | ) | (3 | ) | 1,806 | (28 | ) | |||||||||||
Other | 2,376 | 2,581 | 2,740 | 2,676 | 2,272 | |||||||||||||||
Total non-interest income | 36,752 | 38,425 | 36,208 | 37,623 | 30,360 | |||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||
Employee compensation and benefits | 41,090 | 38,759 | 38,619 | 37,590 | 35,836 | |||||||||||||||
Occupancy and equipment | 15,944 | 16,247 | 15,018 | 13,429 | 12,614 | |||||||||||||||
Advertising and promotion | 5,858 | 10,400 | 8,649 | 7,400 | 8,618 | |||||||||||||||
Professional fees | 1,713 | 1,632 | 1,968 | 2,374 | 2,317 | |||||||||||||||
Costs associated with debt redemption | — | — | — | 1,034 | 423 | |||||||||||||||
Check losses | 1,857 | 2,639 | 2,855 | 1,875 | 1,246 | |||||||||||||||
Supplies and postage | 1,853 | 1,736 | 1,719 | 1,737 | 1,661 | |||||||||||||||
Telecommunication | 1,381 | 1,233 | 1,241 | 1,158 | 1,153 | |||||||||||||||
One-time termination benefits | 2,553 | — | — | — | — | |||||||||||||||
Other | 7,244 | 7,195 | 6,438 | 7,493 | 5,880 | |||||||||||||||
Total non-interest expense | 79,493 | 79,841 | 76,507 | 74,090 | 69,748 | |||||||||||||||
(Loss) income from continuing operations before income taxes | (3,056 | ) | (424 | ) | 9,418 | 14,012 | 10,970 | |||||||||||||
(Benefit) provision for income taxes | (852 | ) | (1,472 | ) | 2,052 | 3,569 | 2,948 | |||||||||||||
(Loss) income from continuing operations | (2,204 | ) | 1,048 | 7,366 | 10,443 | 8,022 | ||||||||||||||
Discontinued operations | 7,920 | (2,718 | ) | (4,842 | ) | (2,367 | ) | (1,565 | ) | |||||||||||
Net income (loss) | $ | 5,716 | (1,670 | ) | 2,524 | 8,076 | 6,457 | |||||||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
Consolidated Average Balance Sheet (unaudited)
For the three months ended | ||||||||||||||||||||||
(in thousands except percentages and per share data) | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | |||||||||||||||||
Loans: | ||||||||||||||||||||||
Residential real estate | $ | 2,181,478 | 2,176,047 | 2,130,077 | 2,047,430 | 2,043,310 | ||||||||||||||||
Commercial real estate | 1,420,944 | 1,462,005 | 1,498,192 | 1,480,314 | 1,683,173 | |||||||||||||||||
Consumer | 606,472 | 584,972 | 563,002 | 546,624 | 539,937 | |||||||||||||||||
Commercial business | 156,237 | 155,884 | 152,796 | 148,776 | 102,533 | |||||||||||||||||
Small business | 285,387 | 276,103 | 267,263 | 255,701 | 241,103 | |||||||||||||||||
Total Loans | 4,650,518 | 4,655,011 | 4,611,330 | 4,478,845 | 4,610,056 | |||||||||||||||||
Investments — taxable | 743,936 | 740,568 | 751,922 | 679,622 | 680,739 | |||||||||||||||||
Investments — tax exempt | 398,388 | 400,804 | 399,091 | 404,644 | 401,541 | |||||||||||||||||
Total interest earning assets | 5,792,842 | 5,796,383 | 5,762,343 | 5,563,111 | 5,692,336 | |||||||||||||||||
Goodwill and core deposit intangibles | 81,124 | 83,708 | 84,098 | 84,486 | 84,878 | |||||||||||||||||
Discontinued assets held for sale | 118,319 | 232,317 | 226,146 | 236,122 | 235,841 | |||||||||||||||||
Other non-interest earning assets | 446,785 | 407,149 | 394,311 | 388,656 | 375,388 | |||||||||||||||||
Total assets | $ | 6,439,070 | 6,519,557 | 6,466,898 | 6,272,375 | 6,388,443 | ||||||||||||||||
Tangible assets | (note 1) | $ | 6,357,946 | 6,435,849 | 6,382,800 | 6,187,889 | 6,303,565 | |||||||||||||||
Deposits: | ||||||||||||||||||||||
Demand deposits | $ | 989,293 | 1,006,242 | 1,043,497 | 1,109,005 | 1,065,510 | ||||||||||||||||
Savings | 529,435 | 413,239 | 367,829 | 364,946 | 331,117 | |||||||||||||||||
NOW | 771,017 | 735,164 | 727,517 | 764,738 | 760,419 | |||||||||||||||||
Money market | 650,383 | 694,057 | 733,058 | 765,805 | 829,700 | |||||||||||||||||
Certificates of deposit | 961,716 | 927,431 | 858,688 | 844,318 | 843,866 | |||||||||||||||||
Total deposits | 3,901,844 | 3,776,133 | 3,730,589 | 3,848,812 | 3,830,612 | |||||||||||||||||
Short-term borrowed funds | 197,683 | 189,519 | 374,913 | 396,870 | 239,144 | |||||||||||||||||
FHLB advances | 1,405,279 | 1,528,039 | 1,354,944 | 1,010,458 | 1,164,675 | |||||||||||||||||
Secured borrowings | (note 2) | — | — | — | — | 125,293 | ||||||||||||||||
Long-term debt | 292,899 | 293,592 | 300,549 | 303,052 | 301,529 | |||||||||||||||||
Total borrowings | 1,895,861 | 2,011,150 | 2,030,406 | 1,710,380 | 1,830,641 | |||||||||||||||||
Discontinued liabilities held for sale | 61,202 | 141,254 | 131,266 | 138,339 | 136,169 | |||||||||||||||||
Other liabilities | 50,722 | 57,832 | 48,827 | 48,402 | 68,524 | |||||||||||||||||
Total liabilities | 5,909,629 | 5,986,369 | 5,941,088 | 5,745,933 | 5,865,946 | |||||||||||||||||
Stockholders’ equity | 529,441 | 533,188 | 525,810 | 526,442 | 522,497 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,439,070 | 6,519,557 | 6,466,898 | 6,272,375 | 6,388,443 | ||||||||||||||||
Other comprehensive (loss) in stockholders’ equity | (2,142 | ) | (4,379 | ) | (10,270 | ) | (8,700 | ) | (5,350 | ) | ||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 450,459 | 453,859 | 451,982 | 450,656 | 442,969 | |||||||||||||||
Net Interest Margin | 3.35 | % | 3.56 | % | 3.63 | % | 3.75 | % | 3.62 | % | ||||||||||||
Period End | ||||||||||||||||||||||
Total loans, net | $ | 4,622,784 | 4,595,920 | 4,638,215 | 4,484,764 | 4,521,725 | ||||||||||||||||
Total assets | 6,380,176 | 6,495,662 | 6,570,220 | 6,402,889 | 6,358,115 | |||||||||||||||||
Total stockholders’ equity | 514,977 | 524,982 | 522,533 | 518,498 | 519,613 | |||||||||||||||||
Class A common shares outstanding | 54,956,368 | 56,157,425 | 56,114,600 | 56,338,922 | 56,417,568 | |||||||||||||||||
Class B common shares outstanding | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | |||||||||||||||||
Cash dividends | 2,458,490 | 2,507,673 | 2,506,136 | 2,330,675 | 2,334,112 | |||||||||||||||||
Common stock cash dividends per share | 0.041 | 0.041 | 0.041 | 0.038 | 0.038 | |||||||||||||||||
Closing stock price | 10.96 | 13.81 | 14.22 | 14.84 | 14.39 | |||||||||||||||||
High stock price for the quarter | 13.98 | 13.94 | 14.97 | 15.99 | 15.23 | |||||||||||||||||
Low stock price for the quarter | 10.87 | 12.66 | 12.96 | 13.86 | 12.67 | |||||||||||||||||
Book value per share | 8.61 | 8.60 | 8.57 | 8.47 | 8.48 |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | |||||||||||||||
Net interest income | $ | 52,070 | 54,103 | 55,107 | 55,257 | 55,138 | ||||||||||||||
Provision for (recovery from) loan losses | 7,461 | 8,160 | 271 | (20 | ) | 163 | ||||||||||||||
Net Interest income after provision for loan losses | 44,609 | 45,943 | 54,836 | 55,277 | 54,975 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposits | 24,595 | 26,091 | 24,008 | 21,274 | 19,099 | |||||||||||||||
Other service charges and fees | 7,033 | 7,188 | 6,779 | 7,353 | 6,222 | |||||||||||||||
Securities activities, net | 621 | 200 | — | 458 | (1 | ) | ||||||||||||||
Gain on sales of loans | 200 | 211 | 175 | 200 | 94 | |||||||||||||||
Gain associated with debt redemption | — | — | — | 1,092 | 436 | |||||||||||||||
Income (loss) from real estate operations | — | — | — | 114 | (1,096 | ) | ||||||||||||||
Income from unconsolidated subsidiaries | 365 | 33 | — | — | — | |||||||||||||||
(Loss) gain on the sale of office properties, net | (153 | ) | (148 | ) | (3 | ) | 1,806 | (28 | ) | |||||||||||
Other non-interest income | 2,386 | 2,590 | 2,752 | 2,663 | 2,282 | |||||||||||||||
Total non-interest income | 35,047 | 36,165 | 33,711 | 34,960 | 27,008 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Employee compensation and benefits | 40,664 | 37,709 | 37,512 | 36,529 | 34,349 | |||||||||||||||
Occupancy and equipment | 15,942 | 16,242 | 15,015 | 13,424 | 12,610 | |||||||||||||||
Advertising | 5,788 | 10,331 | 8,599 | 7,205 | 8,524 | |||||||||||||||
Professional fees | 1,620 | 1,576 | 1,756 | 2,109 | 2,212 | |||||||||||||||
Costs associated with debt redemption | — | — | — | 1,034 | 423 | |||||||||||||||
Check losses | 1,857 | 2,639 | 2,855 | 1,875 | 1,246 | |||||||||||||||
Supplies and postage | 1,850 | 1,735 | 1,716 | 1,728 | 1,654 | |||||||||||||||
Telecommunication | 1,379 | 1,230 | 1,238 | 1,155 | 1,151 | |||||||||||||||
One-time termination benefits | 2,553 | — | — | — | — | |||||||||||||||
Other | 7,117 | 7,017 | 6,217 | 7,202 | 5,631 | |||||||||||||||
Total non-interest expense | 78,770 | 78,479 | 74,908 | 72,261 | 67,800 | |||||||||||||||
Income from bank operations business segment before income taxes | 886 | 3,629 | 13,639 | 17,976 | 14,183 | |||||||||||||||
Provision for income taxes | 247 | 11 | 3,801 | 5,272 | 4,021 | |||||||||||||||
Net income from bank operations business segment | $ | 639 | 3,618 | 9,838 | 12,704 | 10,162 | ||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
For the Three Months Ended | ||||||||||||||||||||||
(in thousands except percentages | ||||||||||||||||||||||
and per share data) | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | |||||||||||||||||
Statistics: | ||||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||
Average earning assets | $ | 5,666,507 | 5,702,063 | 5,669,550 | 5,460,276 | 5,591,286 | ||||||||||||||||
Average interest bearing liabilities | $ | 4,551,448 | 4,520,332 | 4,457,382 | 4,189,321 | 4,338,215 | ||||||||||||||||
Average tangible assets | $ | 6,092,568 | 6,086,579 | 6,041,302 | 5,827,060 | 5,947,154 | ||||||||||||||||
Average tangible equity | $ | 502,827 | 505,580 | 500,655 | 491,459 | 484,162 | ||||||||||||||||
Borrowings to deposits and borrowings | % | 26.39 | 30.36 | 33.63 | 29.35 | 26.31 | ||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||
Yield on earning assets | % | 6.71 | 6.83 | 6.81 | 6.58 | 6.39 | ||||||||||||||||
Cost of interest-bearing liabilities | % | 3.65 | 3.62 | 3.52 | 3.14 | 3.06 | ||||||||||||||||
Interest spread | % | 3.06 | 3.21 | 3.29 | 3.44 | 3.33 | ||||||||||||||||
Net interest margin | % | 3.78 | 3.96 | 4.04 | 4.17 | 4.02 | ||||||||||||||||
Performance: | ||||||||||||||||||||||
Efficiency ratio | % | 90.42 | 86.94 | 84.34 | 80.10 | 82.54 | ||||||||||||||||
Return on average tangible assets | % | 0.04 | 0.24 | 0.65 | 0.87 | 0.68 | ||||||||||||||||
Return on average tangible equity | % | 0.51 | 2.86 | 7.86 | 10.34 | 8.40 | ||||||||||||||||
Earning assets repricing: | ||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 54 | 52 | 52 | 52 | 55 | ||||||||||||||||
Percent of earning assets that have variable rates | % | 46 | 48 | 48 | 48 | 45 | ||||||||||||||||
One year Gap | % | (3 | ) | (4 | ) | (4 | ) | (2 | ) | 9 |
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(In thousands) | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,622,784 | 4,595,920 | 4,638,215 | 4,484,764 | 4,521,725 | ||||||||||||||
Held to maturity securities | 424,487 | 475,790 | 479,859 | 470,994 | 396,251 | |||||||||||||||
Available for sale securities | 556,404 | 559,629 | 568,699 | 569,618 | 567,664 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 6,447 | 6,834 | 7,221 | 7,608 | 7,995 | |||||||||||||||
Other assets | 495,098 | 478,460 | 418,551 | 445,454 | 436,490 | |||||||||||||||
Total assets | $ | 6,175,709 | 6,187,122 | 6,183,034 | 6,048,927 | 6,000,614 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 1,031,628 | 995,930 | 1,011,531 | 1,119,608 | 1,152,365 | ||||||||||||||
NOW | 799,300 | 779,383 | 723,211 | 747,437 | 790,225 | |||||||||||||||
Savings | 598,579 | 465,172 | 370,169 | 372,212 | 351,839 | |||||||||||||||
Total core deposits | 2,429,507 | 2,240,485 | 2,104,911 | 2,239,257 | 2,294,429 | |||||||||||||||
Money market | 653,231 | 677,642 | 695,591 | 740,192 | 806,871 | |||||||||||||||
Certificate of deposits | 1,002,284 | 948,919 | 874,956 | 855,561 | 859,470 | |||||||||||||||
Total deposits | 4,085,022 | 3,867,046 | 3,675,458 | 3,835,010 | 3,960,770 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,297,055 | 1,517,058 | 1,687,062 | 1,127,065 | 1,085,914 | |||||||||||||||
Short term borrowings | 137,914 | 138,686 | 144,722 | 428,942 | 179,850 | |||||||||||||||
Secured borrowings (1) | — | — | — | — | 111,754 | |||||||||||||||
Long term debt | 29,654 | 29,923 | 30,192 | 37,378 | 36,832 | |||||||||||||||
Other liabilities | 63,108 | 68,460 | 81,437 | 68,641 | 74,771 | |||||||||||||||
Total liabilities | 5,612,753 | 5,621,173 | 5,618,871 | 5,497,036 | 5,449,891 | |||||||||||||||
Stockholder’s equity | 562,956 | 565,949 | 564,163 | 551,891 | 550,723 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,175,709 | 6,187,122 | 6,183,034 | 6,048,927 | 6,000,614 | ||||||||||||||
(1) | 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 | ||||||||||||||||||||||||
March 31, 2007 | March 31, 2006 | |||||||||||||||||||||||
(in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,181,478 | 29,511 | 5.41 | % | $ | 2,043,309 | 25,712 | 5.03 | % | ||||||||||||||
Commercial real estate | 1,420,944 | 29,493 | 8.30 | 1,557,880 | 30,827 | 7.92 | ||||||||||||||||||
Loan participations sold | — | — | — | 125,293 | 2,401 | 7.77 | ||||||||||||||||||
Consumer | 606,472 | 11,365 | 7.50 | 539,937 | 9,477 | 7.02 | ||||||||||||||||||
Commercial business | 156,238 | 3,490 | 8.94 | 102,533 | 2,261 | 8.82 | ||||||||||||||||||
Small business | 285,387 | 5,728 | 8.03 | 241,103 | 4,708 | 7.81 | ||||||||||||||||||
Total loans | 4,650,519 | 79,587 | 6.85 | 4,610,055 | 75,386 | 6.54 | ||||||||||||||||||
Investments — tax exempt | 396,374 | 5,802 | (1) | 5.85 | 393,159 | 5,731 | (1) | 5.83 | ||||||||||||||||
Investments — taxable | 619,614 | 9,696 | 6.26 | 588,072 | 8,233 | 5.60 | ||||||||||||||||||
Total interest earning assets | 5,666,507 | 95,085 | 6.71 | % | 5,591,286 | 89,350 | 6.39 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 77,138 | 78,693 | ||||||||||||||||||||||
Other non-interest earning assets | 426,061 | 355,868 | ||||||||||||||||||||||
Total Assets | $ | 6,169,706 | $ | 6,025,847 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 529,435 | 2,570 | 1.97 | % | $ | 331,117 | 313 | 0.38 | % | ||||||||||||||
NOW | 771,017 | 1,512 | 0.80 | 760,419 | 934 | 0.50 | ||||||||||||||||||
Money market | 650,383 | 3,938 | 2.46 | 829,700 | 3,984 | 1.95 | ||||||||||||||||||
Certificate of deposit | 961,716 | 10,982 | 4.63 | 843,866 | 7,523 | 3.62 | ||||||||||||||||||
Total interest bearing deposits | 2,912,551 | 19,002 | 2.65 | 2,765,102 | 12,754 | 1.87 | ||||||||||||||||||
Short-term borrowed funds | 203,984 | 2,633 | 5.23 | 245,326 | 2,643 | 4.37 | ||||||||||||||||||
Advances from FHLB | 1,405,279 | 18,723 | 5.40 | 1,164,675 | 14,140 | 4.92 | ||||||||||||||||||
Secured borrowings | — | — | — | 125,293 | 2,401 | 7.77 | ||||||||||||||||||
Long-term debt | 29,634 | 626 | 8.57 | 37,819 | 748 | 8.02 | ||||||||||||||||||
Total interest bearing liabilities | 4,551,448 | 40,984 | 3.65 | 4,338,215 | 32,686 | 3.06 | ||||||||||||||||||
Demand deposits | 989,546 | 1,065,909 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 56,222 | 70,349 | ||||||||||||||||||||||
Total Liabilities | 5,597,216 | 5,474,473 | ||||||||||||||||||||||
Stockholder’s equity | 572,490 | 551,374 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,169,706 | $ | 6,025,847 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | $ | 54,101 | 3.06 | % | $ | 56,664 | 3.33 | % | ||||||||||||||||
Tax equivalent adjustment | (2,031 | ) | (2,006 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | — | 480 | ||||||||||||||||||||||
Net interest income | 52,070 | 55,138 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.71 | % | 6.39 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.93 | 2.37 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.78 | % | 4.02 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 3.78 | % | 4.11 | % | ||||||||||||||||||||
(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 | |||||||||||||||||||
3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
Beginning balance | $ | 43,602 | 42,517 | 42,012 | 41,889 | 41,192 | ||||||||||||||
Charge-offs: | ||||||||||||||||||||
Residential real estate | (151 | ) | — | (111 | ) | (60 | ) | (68 | ) | |||||||||||
Commercial real estate | — | (7,000 | ) | — | — | — | ||||||||||||||
Commercial business | — | — | — | (22 | ) | (12 | ) | |||||||||||||
Consumer | (538 | ) | (209 | ) | (232 | ) | (39 | ) | (201 | ) | ||||||||||
Small business | (438 | ) | (544 | ) | (93 | ) | (229 | ) | (85 | ) | ||||||||||
Total charge-offs | (1,127 | ) | (7,753 | ) | (436 | ) | (350 | ) | (366 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Residential real estate | — | — | 170 | — | 178 | |||||||||||||||
Commercial real estate | — | — | 10 | — | 9 | |||||||||||||||
Commercial business | 42 | 379 | 54 | 116 | 111 | |||||||||||||||
Consumer | 167 | 76 | 163 | 98 | 199 | |||||||||||||||
Small business | 228 | 114 | 193 | 119 | 140 | |||||||||||||||
Other | — | 109 | 80 | 160 | 263 | |||||||||||||||
Total recoveries | 437 | 678 | 670 | 493 | 900 | |||||||||||||||
Net (charge-offs) recoveries | (690 | ) | (7,075 | ) | 234 | 143 | 534 | |||||||||||||
Provision (recovery from) loan losses | 7,461 | 8,160 | 271 | (20 | ) | 163 | ||||||||||||||
Ending balance | $ | 50,373 | 43,602 | 42,517 | 42,012 | 41,889 | ||||||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.06 | % | 0.61 | (0.02 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
As of | ||||||||||||||||||||
3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 25,746 | 4,436 | 32,895 | 5,349 | 6,101 | ||||||||||||||
Nonaccrual tax certificates | 597 | 631 | 760 | 857 | 685 | |||||||||||||||
Real estate owned | 23,135 | 21,747 | 1,439 | 1,907 | 1,647 | |||||||||||||||
Other repossessed assets | — | — | — | — | — | |||||||||||||||
Total nonperforming assets | $ | 49,478 | 26,814 | 35,094 | 8,113 | 8,433 | ||||||||||||||
Nonperforming assets to total loans and other assets | 1.02 | % | 0.55 | 0.72 | 0.17 | 0.18 | ||||||||||||||
Allowance for loan losses to total loans | 1.08 | % | 0.94 | 0.91 | 0.93 | 0.94 | ||||||||||||||
Provision (recovery) to average loans | 0.64 | % | 0.70 | 0.02 | (0.00 | ) | 0.01 | |||||||||||||
Allowance to nonperforming loans | 195.65 | % | 982.91 | 129.25 | 785.42 | 686.59 |
(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 | ||||||||||||||||||||
(in thousands) | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | |||||||||||||||
Net interest (expense) | $ | (4,924 | ) | (4,952 | ) | (5,117 | ) | (4,798 | ) | (4,618 | ) | |||||||||
Non-Interest income | ||||||||||||||||||||
Income from unconsolidated subsidiaries | 781 | 270 | 266 | 278 | 820 | |||||||||||||||
Securities activities, net | 934 | 2,000 | 2,243 | 2,372 | 2,541 | |||||||||||||||
Non-interest income | 1,715 | 2,270 | 2,509 | 2,650 | 3,361 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Employee compensation and benefits | 426 | 1,050 | 1,107 | 1,061 | 1,487 | |||||||||||||||
Advertising and promotion | 70 | 70 | 49 | 195 | 94 | |||||||||||||||
Professional fees | 93 | 56 | 212 | 264 | 106 | |||||||||||||||
Other | 144 | 194 | 243 | 297 | 271 | |||||||||||||||
Non-interest expense | 733 | 1,370 | 1,611 | 1,817 | 1,958 | |||||||||||||||
Loss from parent company activities before income taxes | (3,942 | ) | (4,052 | ) | (4,219 | ) | (3,965 | ) | (3,215 | ) | ||||||||||
Benefit for income taxes | (1,099 | ) | (1,484 | ) | (1,748 | ) | (1,702 | ) | (1,074 | ) | ||||||||||
Net loss from parent company business segment | $ | (2,843 | ) | (2,568 | ) | (2,471 | ) | (2,263 | ) | (2,141 | ) | |||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 14,699 | 4,852 | 2,246 | 8,796 | 4,933 | ||||||||||||||
Securities | 194,257 | 103,218 | 101,621 | 99,486 | 112,006 | |||||||||||||||
Investment in subsidiaries | 562,958 | 661,467 | 662,224 | 654,651 | 655,609 | |||||||||||||||
Investment in unconsolidated subsidiaries | 7,910 | 11,996 | 11,996 | 11,996 | 11,996 | |||||||||||||||
Other assets | 2,929 | 12,165 | 12,256 | 10,716 | 7,382 | |||||||||||||||
Total assets | $ | 782,753 | 793,698 | 790,343 | 785,645 | 791,926 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 263,266 | 263,266 | 263,266 | 263,266 | 268,266 | ||||||||||||||
Other liabilities | 4,510 | 5,450 | 4,544 | 3,881 | 4,047 | |||||||||||||||
Total liabilities | 267,776 | 268,716 | 267,810 | 267,147 | 272,313 | |||||||||||||||
Stockholders’ equity | 514,977 | 524,982 | 522,533 | 518,498 | 519,613 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 782,753 | 793,698 | 790,343 | 785,645 | 791,926 | ||||||||||||||