Exhibit 99.1
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BankAtlantic Bancorp Reports Financial Results for Second Quarter, 2007
FORT LAUDERDALE, Florida — July 24, 2007 — BankAtlantic Bancorp, Inc. (NYSE: BBX) today announced financial results for the quarter ended June 30, 2007. Net income was $11.6 million, or $0.19 per diluted share, compared to net income of $8.1 million, or $0.13 per diluted share, for the second quarter of 2006. Income from continuing operations was $11.7 million, or $0.20 per diluted share, compared to $10.4 million, or $0.17 per diluted share, for the 2006 period.
Net income for the first six months of 2007 was $17.3 million, or $0.28 per diluted share, compared to $14.5 million, or $0.23 per diluted share, for the comparable 2006 period. Income from continuing operations for the first six months of 2007 was $9.5 million, or $0.16 per diluted share, compared to $18.5 million, or $0.29 per diluted share, for the comparable 2006 period.
The second quarter and year-to-date results include an after-tax gain of approximately $5.3 million, or $0.09 per diluted share, and $4.2 million, or $0.07 per diluted share, respectively, associated with the quarterly valuation of warrants to purchase shares of Stifel Financial Corp. (Stifel) acquired in connection with the sale of Ryan Beck Holdings, Inc. (Ryan Beck) in the first quarter of 2007.
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “While we remain committed to the expansion of BankAtlantic through organic growth, we understand that we are in a very challenging economic cycle. This quarter’s financial results compared to the prior year reflect growth in deposit accounts, continued opening of new stores, and our focus on operational efficiency. However, it also reflects the significant impact of the economic cycle on our business with margin compression, higher non-performing asset levels and an increase in our loan loss reserves.
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BankAtlantic Highlights
Net Income —“For the second quarter of 2007, BankAtlantic’s net income was $10.4 million, down from $12.7 million in the comparable 2006 quarter. As discussed in detail later in this release, the decline was due primarily to net interest margin compression, costs associated with opening new stores, and an increased loan loss provision. These factors were offset in part during the quarter by an increase in non-interest income, a decrease in non-interest expense and a lower provision for income taxes, reflecting a lower effective tax rate based on the amount of projected tax-exempt income anticipated for the year.”
Store Expansion Program— BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “During the second quarter of 2007, we celebrated the grand opening of another new store, bringing the total to six stores opened to date in 2007. We have opened a total of 23 new stores since January 1, 2005, which as of June 30, 2007 had balances of $154.3 million in core deposits and $261.8 million in total deposits. (Core deposits include DDA, NOW and savings accounts.) Since the second quarter of 2006, the new stores generated net growth of $113.0 million in core deposits, $182.5 million of total deposits, and over 73,000 of new core deposit accounts. As a whole, these new stores continue to meet or exceed our net contribution goals to ‘break-even’ on a current earnings basis in 12-15 months. Because of the time required for newly opened stores to break-even, the expenses associated with BankAtlantic’s store expansion program negatively impacted BankAtlantic’s second quarter pre-tax results by approximately $2.9 million. We anticipate that the negative impact of the expansion program on 2007 pre-tax income will range between $13.0 and $14.0 million based on the anticipated addition of another 11-13 new stores during the remainder of 2007. We believe the costs of the expansion program are justified by the anticipated performance of the new stores, and that the new stores will continue to contribute to BankAtlantic’s overall deposit growth and franchise value as the stores mature. As of quarter-end, we had a total of 94 stores throughout Florida.
Deposit Accounts and Balances— “At quarter-end, ‘total bank’ and ‘same store’ core deposit balances both increased 5% over the second quarter of 2006, representing a total bank net increase of $110.8 million in core deposits and $182.1 million in total deposits. In the second quarter of 2007, BankAtlantic opened over 60,000 new core deposit accounts, an increase of 4% over the second quarter of 2006, despite a 43% reduction in advertising expense in the 2007 quarter.
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Credit Quality— “The economic cycle has created a degree of uncertainty, particularly in Florida. As such, we remain cautious in our credit management. The following paragraphs are offered to provide additional clarity regarding the characteristics of our Commercial and Residential portfolios.
Commercial Loans — “The Bank’s Commercial Real Estate loan portfolio at June 30, 2007 totaled $1.4 billion. This portfolio consists of retail, industrial, residential construction and development loans. Most of these loans are personally guaranteed, BankAtlantic’s interest in any of these loans generally does not exceed $20.0 million, and single borrower concentrations are limited to $40.0 million. Approximately twelve loans in this portfolio, aggregating approximately $135 million, are characterized as ‘Builder Land Loans’. ‘Builder Land Loans’ were made to borrowers who have agreements to sell the underlying collateral to national and local home builders pursuant to option contracts. However, due to the deterioration in the Florida housing market, some of these option contracts have been cancelled or modified. We continue to monitor the impact of the weak homebuilding environment on this portfolio. Although our non-accrual loans declined $3.9 million in the quarter from the first quarter of 2007, we may have additional downgrades and additional provisions relating to the portfolio if the housing market does not improve.
Residential—“Our Purchased Residential Mortgage portfolio was $2.2 billion at quarter- end, representing approximately 47% of the Bank’s total loans. This portfolio contained no sub-prime or negative amortizing loans, and over 90% of the portfolio is distributed geographically outside of the state of Florida. The average FICO score in this portfolio was 741 at the time of origination, and the average original loan-to-value of the portfolio was 69%. Quarter-end delinquencies, including non-accrual loans, were 0.39% of the unpaid principal balance, and our loss history on this portfolio over the past twelve months was less than 0.01% of average outstandings.
“As previously indicated, during the second quarter of 2007, overall non-accrual loans decreased 15%, or $3.9 million from the first quarter of 2007 but increased $16.5 million compared to the second quarter of 2006, primarily as a result of non-accruals in our ‘Builder Land Loans’ portfolio. As a result, the ratio of non-performing loans to total loans increased from 0.12% at June 30, 2006 to 0.47% at June 30, 2007. Annualized net charge-offs (recoveries) to average loans were 0.05% for the June 30, 2007 quarter, compared to (0.01) % for
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the June 30, 2006 quarter. The provision for loan losses in the second quarter of 2007 was $4.9 million, or 0.42% of average loans (annualized) versus a net recovery of $20,000 for the second quarter of 2006. The allowance for loan losses increased $12.7 million from $42.0 million (0.93% of total loans) at June 30, 2006 to $54.8 million (1.17% of total loans) at June 30, 2007.
Net Interest Margin and Earning Assets— “Net interest income for the second quarter of 2007 was $50.9 million compared to $55.3 million in the corresponding 2006 quarter, reflecting a 45 basis point decline in the tax equivalent net interest margin offset in part by a 4% increase in average earning assets. Average earning assets increased $230.2 million, while average core deposits and total deposits increased $138.3 million and $199.2 million, respectively.
“The tax equivalent net interest margin was 3.72% in the second quarter of 2007, down from 4.17% in the corresponding quarter of 2006. While earning asset yields improved 12 basis points, the cost of interest bearing liabilities increased 56 basis points, reflecting an increase in higher cost deposit categories and pricing tiers. Additionally, average demand deposits declined $119.9 million as we experienced migration to higher cost deposit products, and the higher yielding Commercial Real Estate loan portfolio declined approximately $96 million.
Non-interest income —“Non-interest income for the second quarter was $36.7 million, a 5% increase over the comparable 2006 period. Excluding gains of $2.9 million in the second quarter of 2006 related to debt redemption and a sale of office properties, non-interest income would have increased 14% in the second quarter of 2007 over the comparable 2006 period. Additionally, non-interest income as a percent of total revenues rose to 42% in the second quarter of 2007 compared to 39% in 2006, reflecting the increase in the number of transaction accounts and an increase in revenue not directly impacted by the interest rate environment.
Non-interest expense — “Non-interest expense for the second quarter of 2007 decreased $0.7 million from the second quarter of 2006 to $71.5 million, which included $4.8 million in increased expenses, year-over-year, related to our store expansion program. We previously noted that the impact of first quarter workforce reductions and reduced marketing expenditures would be reflected in the results for the second quarter. This is evidenced by a decline in expenses from the first to second quarter of 2007 of approximately $7.2 million. The first quarter of 2007 included a charge of $2.6 million in one-time termination benefits, and the second quarter of 2007 included a $1.1 million impairment charge of real estate held for sale;
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excluding these items, the improvement in expenses from the first to second quarter of 2007 would have been $5.8 million. We remain committed to prudent expense management in areas that do not impact our ‘Florida’s Most Convenient Bank’ strategy or affect customer service, and continue to explore opportunities for expense savings throughout the organization. However, the costs associated with the additional new stores that are planned to open in the third and fourth quarters of this year are anticipated to result in a net increase in expenses in 2007.”
BankAtlantic Bancorp:
Stifel Investment—BankAtlantic Bancorp’s Chairman and CEO, Alan B. Levan, further commented, “As previously announced during the first quarter of 2007, BankAtlantic Bancorp completed the sale of Ryan Beck to Stifel in a tax-free transaction. As part of the sale of Ryan Beck, BankAtlantic Bancorp received 2,377,354 shares of Stifel common stock and warrants to purchase 481,724 shares of Stifel common stock at an exercise price of $36 per share. As the warrants are accounted for as derivatives with changes in value reflected in earnings, we recorded a $6.1 million pre-tax gain for the quarter associated with the change in value of the warrants resulting from the increase in the Stifel stock price in the second quarter of 2007, versus the $(1.5) million loss recorded in the first quarter of 2007. Currently, unrealized pre-tax gains in the Stifel holdings are approximately $36 million (based on the July 24, 2007 closing price). Excluded from this figure is the contingent earn-out, if any, payable pursuant to the terms of the Ryan Beck agreement. The private client contingent payment is based upon defined revenues attributable to specified individuals over a two-year period; assuming such individuals achieve their 2006 revenues annually during the earn-out period, the earn-out would approximate $20 million. The private client earn-out is capped at $40 million for the two years. The investment banking contingent payment is based on defined revenues attributable to specified individuals, and is equal to 25% of the related fees in excess of $25 million for each of the next two years. The contingent payments are payable, at Stifel’s election, in cash or common stock, but there is no assurance any amounts will ultimately be payable.
Stock Buyback— “As part of our stock buyback program, BankAtlantic Bancorp repurchased just over 2 million shares during the second quarter of 2007. Under the current Board authorization which allows repurchase of up to 6 million shares, we have repurchased and retired approximately 3.9 million shares, or 7% of total outstanding shares at the time the
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program was initiated. Approximately 2.1 million shares remain available for repurchase under the current program, and we are currently evaluating increasing this amount.
Cash Dividend— “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 July 3rd, 2007. The second quarter’s dividend declaration marked BankAtlantic Bancorp’s 56th consecutive quarterly dividend payment.”
Financial Highlights:
Second Quarter, 2007 Compared to Second Quarter, 2006
Second Quarter, 2007 Compared to Second Quarter, 2006
BankAtlantic Bancorp — consolidated:
• | Income from continuing operations was $11.7 million vs. $10.4 million, an increase of 12% | ||
• | Diluted earnings per share from continuing operations was $0.20 vs. $0.17 | ||
• | Return on average tangible equity from continuing operations was 10.47% | ||
• | Book value per share was $8.83 |
BankAtlantic:
• | Business segment net income was $10.4 million vs. $12.7 million, a decrease of 18% | ||
• | Over 60,000 new core deposit accounts opened, an increase of 4% over accounts opened in the corresponding 2006 quarter | ||
• | Return on average tangible assets was 0.68% | ||
• | Return on average tangible equity was 8.26% | ||
• | Tax equivalent net interest margin decreased to 3.72% vs. 4.17% | ||
• | Non-interest income, before gains of $1.1 million associated with debt redemption and $1.8 million associated with the sale of office properties in 2006, was $36.7 million vs. $32.1 million, an increase of 14% | ||
• | Non-interest expense, before the $1.1 million impairment charge of real estate held for sale in 2007 and $1.0 million of costs associated with debt redemption in 2006, was $70.5 million vs. $71.2 million, a decrease of 1% |
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Year to Date 2007 Compared to Year to Date 2006
BankAtlantic Bancorp — consolidated:
• | Income from continuing operations was $9.5 million vs. $18.5 million | ||
• | Diluted earnings per share from continuing operations of $0.16 vs. $0.29 | ||
• | Return on average tangible equity from continuing operations was 4.24% |
BankAtlantic:
• | Business segment net income was $11.0 million vs. $22.9 million | ||
• | Nearly 140,000 new core deposit accounts opened, an increase of 4% over accounts opened in 2006 | ||
• | Return on average tangible assets was 0.36% | ||
• | Return on average tangible equity was 4.39% | ||
• | Non-interest income, before gains of $1.5 million associated with debt redemption and $1.8 million associated with the sale of office properties in 2006, was $71.7 million vs. $58.7 million, an increase of 22% | ||
• | Non-interest expense, before the $1.1 million impairment charge of real estate held for sale in 2007, the one-time charge of $2.6 million for termination benefits in 2007 and the $1.5 million costs associated with debt redemption in 2006, grew to $146.7 million vs. $138.6 million, an increase of 6% |
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BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Wednesday, July 25, 2007, at 10:00 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 number5790546.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Wednesday, August 8, 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 is5790546.
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Webcast Information:
Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visit www.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Webcast” navigation link, or go directly to http://www.visualwebcaster.com/event.asp?id=40582. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Wednesday, August 8, 2007.
BankAtlantic Bancorp’s second quarter, 2007 financial results press release and financial summary, as well as the Supplemental Financials (a detailed summary of significant financial events and extensive business segment financial data), will be available on its website at: www.BankAtlanticBancorp.com.
• | To view the financial summary, access the “Investor Relations” section and click on the “Quarterly Financials” navigation link. | ||
• | To view the Supplemental Financials, access the “Investor Relations” section and click on the “Supplemental Financials” navigation link. |
Copies of BankAtlantic Bancorp’s second quarter, 2007 financial 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 97 stores and operates more than 250 conveniently located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, including several stores open until midnight, Totally Free Online Banking & Bill Pay, 24/7 Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift.
BankAtlantic, “Florida’s Most Convenient Bank” is one of the largest financial institutions headquartered in Florida and provides a comprehensive offering of banking services and products via its broad network of community stores and its online banking division — BankAtlantic.com. BankAtlantic currently has 97 stores and operates more than 250 conveniently located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, including several stores open until midnight, Totally Free Online Banking & Bill Pay, 24/7 Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift.
For further information, please visit our websites:
www.BankAtlanticBancorp.com
www.BankAtlantic.com
www.BankAtlanticBancorp.com
www.BankAtlantic.com
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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
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
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.
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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; the quality of our residential land acquisition and development loans (including “Builder Land 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 expense 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 in the time frames anticipated, if at all;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, and the risk that no gain will be realized. The earn-out amounts payable under the agreement with Stifel are contingent upon the performance of individuals and divisions of Ryan Beck which are now under the exclusive control and direction of Stifel, and there is no assurance that we will be entitled to receive any earn-out payments. 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 Six | ||||||||||||||||||||||||||||||||
For The Three Months Ended | Months Ended | |||||||||||||||||||||||||||||||
6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 6/30/2007 | 6/30/2006 | ||||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 11,728 | (2,204 | ) | 1,048 | 7,366 | 10,443 | 9,524 | 18,465 | |||||||||||||||||||||||
Net income (loss) | $ | 11,620 | 5,716 | (1,670 | ) | 2,524 | 8,076 | 17,336 | 14,533 | |||||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 59,190 | 60,635 | 61,007 | 61,046 | 61,324 | 59,908 | 61,166 | |||||||||||||||||||||||||
Diluted | 59,929 | 60,635 | 62,278 | 62,412 | 62,820 | 60,922 | 62,792 | |||||||||||||||||||||||||
Key Performance Ratios | ||||||||||||||||||||||||||||||||
Basic earnings (loss) per share from continuing operations | $ | 0.20 | (0.04 | ) | 0.02 | 0.12 | 0.17 | 0.16 | 0.30 | |||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations | $ | 0.20 | (0.04 | ) | 0.02 | 0.12 | 0.17 | 0.16 | 0.29 | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.20 | 0.09 | (0.03 | ) | 0.04 | 0.13 | 0.29 | 0.24 | |||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.19 | 0.09 | (0.03 | ) | 0.04 | 0.13 | 0.28 | 0.23 | |||||||||||||||||||||||
Return on average tangible assets from continuing operations | (note 1) | % | 0.74 | (0.14 | ) | 0.07 | 0.46 | 0.68 | 0.30 | 0.59 | ||||||||||||||||||||||
Return on average tangible equity from continuing operations | (note 1) | % | 10.47 | (1.96 | ) | 0.92 | 6.52 | 9.27 | 4.24 | 8.27 | ||||||||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||||
Assets | $ | 6,407 | 6,439 | 6,520 | 6,467 | 6,272 | 6,423 | 6,330 | ||||||||||||||||||||||||
Tangible assets | (note 1) | $ | 6,330 | 6,358 | 6,436 | 6,383 | 6,188 | 6,344 | 6,246 | |||||||||||||||||||||||
Loans | $ | 4,678 | 4,651 | 4,655 | 4,611 | 4,479 | 4,644 | 4,544 | ||||||||||||||||||||||||
Investments | $ | 1,194 | 1,142 | 1,141 | 1,151 | 1,084 | 1,168 | 1,083 | ||||||||||||||||||||||||
Deposits and escrows | $ | 4,048 | 3,902 | 3,776 | 3,731 | 3,849 | 3,975 | 3,840 | ||||||||||||||||||||||||
Stockholders’ equity | $ | 525 | 529 | 533 | 526 | 526 | 527 | 524 | ||||||||||||||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 448 | 450 | 454 | 452 | 451 | 449 | 447 |
Note:
(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. |
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
Consolidated Statements of Financial Condition (unaudited)
June 30, | December 31, | |||||||
(in thousands, except share data) | 2007 | 2006 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 150,000 | 138,904 | |||||
Securities available for sale (at fair value) | 667,287 | 651,316 | ||||||
Investment securities held-to-maturity (approximate fair value: | ||||||||
$291,019 and $209,020) | 278,169 | 206,682 | ||||||
Financial instruments accounted for at fair value | 14,892 | — | ||||||
Tax certificates net of allowance of $3,829 and $3,699 | 230,540 | 195,391 | ||||||
Loans receivable, net of allowance for loan losses of $54,754 and $43,602 | 4,618,690 | 4,595,920 | ||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 74,003 | 80,217 | ||||||
Discontinued operations assets held for sale | — | 190,763 | ||||||
Real estate held for development and sale | 25,110 | 25,333 | ||||||
Real estate owned | 23,886 | 21,747 | ||||||
Office properties and equipment, net | 241,327 | 219,717 | ||||||
Goodwill and other intangible assets | 76,586 | 77,324 | ||||||
Other assets | 94,557 | 92,348 | ||||||
Total assets | $ | 6,495,047 | 6,495,662 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | ||||||||
Demand | $ | 971,260 | 995,920 | |||||
NOW | 769,994 | 779,383 | ||||||
Savings | 608,791 | 465,172 | ||||||
Money market | 666,820 | 677,642 | ||||||
Certificates of deposit | 1,000,278 | 948,919 | ||||||
Total deposits | 4,017,143 | 3,867,036 | ||||||
Advances from FHLB | 1,397,051 | 1,517,058 | ||||||
Securities sold under agreements to repurchase | 77,440 | 101,932 | ||||||
Federal funds purchased and other short term borrowings | 110,662 | 32,026 | ||||||
Subordinated debentures and bonds payable | 29,397 | 29,923 | ||||||
Junior subordinated debentures | 289,040 | 263,266 | ||||||
Discontinued operations liabilities held for sale | — | 95,246 | ||||||
Other liabilities | 61,590 | 64,193 | ||||||
Total liabilities | 5,982,323 | 5,970,680 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 581 | 611 | ||||||
Additional paid-in capital | 231,639 | 260,460 | ||||||
Retained earnings | 278,282 | 265,089 | ||||||
Total stockholders’ equity before accumulated other comprehensive income (loss) | 510,502 | 526,160 | ||||||
Accumulated other comprehensive income (loss) | 2,222 | (1,178 | ) | |||||
Total stockholders’ equity | 512,724 | 524,982 | ||||||
Total liabilities and stockholders’ equity | $ | 6,495,047 | 6,495,662 | |||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For the Six | ||||||||||||||||||||||||||||
For The Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 6/30/2007 | 6/30/2006 | |||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||
Interest and fees on loans | $ | 79,914 | 79,587 | 81,019 | 80,790 | 75,765 | 159,501 | 151,151 | ||||||||||||||||||||
Interest on securities available for sale | 4,628 | 4,561 | 4,472 | 4,483 | 4,314 | 9,189 | 8,619 | |||||||||||||||||||||
Interest on tax exempt securities | 3,800 | 3,796 | 3,817 | 3,804 | 3,862 | 7,596 | 7,668 | |||||||||||||||||||||
Interest and dividends on taxable investments and tax certificates | 5,433 | 5,596 | 6,543 | 6,039 | 4,396 | 11,029 | 8,772 | |||||||||||||||||||||
Total interest income | 93,775 | 93,540 | 95,851 | 95,116 | 88,337 | 187,315 | 176,210 | |||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Interest on deposits | 21,473 | 19,002 | 17,258 | 15,095 | 13,852 | 40,475 | 26,606 | |||||||||||||||||||||
Interest on advances from FHLB | 18,103 | 18,723 | 20,837 | 18,509 | 13,007 | 36,826 | 27,146 | |||||||||||||||||||||
Interest on short-term borrowed funds | 2,010 | 2,555 | 2,505 | 5,078 | 4,931 | 4,565 | 7,506 | |||||||||||||||||||||
Interest on secured borrowings | — | — | — | — | — | 2,401 | ||||||||||||||||||||||
Interest on long-term debt | 6,136 | 6,114 | 6,184 | 6,521 | 6,377 | 12,250 | 12,340 | |||||||||||||||||||||
Capitalized interest on real estate development | — | — | (85 | ) | (75 | ) | (289 | ) | — | (769 | ) | |||||||||||||||||
Total interest expense | 47,722 | 46,394 | 46,699 | 45,128 | 37,878 | 94,116 | 75,230 | |||||||||||||||||||||
NET INTEREST INCOME | 46,053 | 47,146 | 49,152 | 49,988 | 50,459 | 93,199 | 100,980 | |||||||||||||||||||||
Provision for (recovery from) loan losses | 4,917 | 7,461 | 8,160 | 271 | (20 | ) | 12,378 | 143 | ||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 41,136 | 39,685 | 40,992 | 49,717 | 50,479 | 80,821 | 100,837 | |||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||
Service charges on deposits | 25,808 | 24,595 | 26,091 | 24,008 | 21,274 | 50,403 | 40,373 | |||||||||||||||||||||
Other service charges and fees | 7,524 | 7,033 | 7,188 | 6,779 | 7,353 | 14,557 | 13,575 | |||||||||||||||||||||
Securities activities, net | 8,813 | 1,555 | 2,199 | 2,243 | 2,830 | 10,368 | 5,371 | |||||||||||||||||||||
Gain on sales of loans | 138 | 200 | 211 | 175 | 200 | 338 | 294 | |||||||||||||||||||||
Gain associated with debt redemption | — | — | — | — | 1,092 | — | 1,528 | |||||||||||||||||||||
(Loss) income from real estate operations | (12 | ) | — | — | — | 114 | (12 | ) | (982 | ) | ||||||||||||||||||
Income from unconsolidated subsidiaries | 669 | 1,146 | 303 | 266 | 278 | 1,815 | 1,098 | |||||||||||||||||||||
(Loss) gain on the sale of office properties and equipment, net | (42 | ) | (153 | ) | (148 | ) | (3 | ) | 1,806 | (195 | ) | 1,778 | ||||||||||||||||
Other | 2,586 | 2,376 | 2,581 | 2,740 | 2,676 | 4,962 | 4,948 | |||||||||||||||||||||
Total non-interest income | 45,484 | 36,752 | 38,425 | 36,208 | 37,623 | 82,236 | 67,983 | |||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Employee compensation and benefits | 37,908 | 41,090 | 38,759 | 38,619 | 37,590 | 78,998 | 73,426 | |||||||||||||||||||||
Occupancy and equipment | 15,927 | 15,944 | 16,247 | 15,018 | 13,429 | 31,871 | 26,043 | |||||||||||||||||||||
Impairment of real estate held for development and sale | 1,056 | — | — | — | — | 1,056 | — | |||||||||||||||||||||
Advertising and promotion | 4,209 | 5,858 | 10,400 | 8,649 | 7,400 | 10,067 | 16,018 | |||||||||||||||||||||
Professional fees | 1,368 | 1,713 | 1,632 | 1,968 | 2,374 | 3,081 | 4,691 | |||||||||||||||||||||
Costs associated with debt redemption | — | — | — | — | 1,034 | — | 1,457 | |||||||||||||||||||||
Check losses | 2,731 | 1,857 | 2,639 | 2,855 | 1,875 | 4,588 | 3,121 | |||||||||||||||||||||
Supplies and postage | 1,632 | 1,853 | 1,736 | 1,719 | 1,737 | 3,485 | 3,398 | |||||||||||||||||||||
Telecommunication | 1,556 | 1,381 | 1,233 | 1,241 | 1,158 | 2,937 | 2,311 | |||||||||||||||||||||
One-time termination benefits | — | 2,553 | — | — | — | 2,553 | — | |||||||||||||||||||||
Other | 6,790 | 7,244 | 7,195 | 6,438 | 7,493 | 14,034 | 13,373 | |||||||||||||||||||||
Total non-interest expense | 73,177 | 79,493 | 79,841 | 76,507 | 74,090 | 152,670 | 143,838 | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 13,443 | (3,056 | ) | (424 | ) | 9,418 | 14,012 | 10,387 | 24,982 | |||||||||||||||||||
Provision (benefit) for income taxes | 1,715 | (852 | ) | (1,472 | ) | 2,052 | 3,569 | 863 | 6,517 | |||||||||||||||||||
Income (loss) from continuing operations | 11,728 | (2,204 | ) | 1,048 | 7,366 | 10,443 | 9,524 | 18,465 | ||||||||||||||||||||
Discontinued operations | (108 | ) | 7,920 | (2,718 | ) | (4,842 | ) | (2,367 | ) | 7,812 | (3,932 | ) | ||||||||||||||||
Net income (loss) | $ | 11,620 | 5,716 | (1,670 | ) | 2,524 | 8,076 | 17,336 | 14,533 | |||||||||||||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
Consolidated Average Balance Sheet (unaudited)
For the three months ended | ||||||||||||||||||||||||
(in thousands except percentages and per share data) | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,215,606 | 2,181,478 | 2,176,047 | 2,130,077 | 2,047,430 | ||||||||||||||||||
Commercial real estate | 1,384,405 | 1,420,944 | 1,462,005 | 1,498,192 | 1,480,314 | |||||||||||||||||||
Consumer | 635,370 | 606,472 | 584,972 | 563,002 | 546,624 | |||||||||||||||||||
Commercial business | 147,026 | 156,237 | 155,884 | 152,796 | 148,776 | |||||||||||||||||||
Small business | 295,483 | 285,387 | 276,103 | 267,263 | 255,701 | |||||||||||||||||||
Total Loans | 4,677,890 | 4,650,518 | 4,655,011 | 4,611,330 | 4,478,845 | |||||||||||||||||||
Investments — taxable | 795,156 | 743,936 | 740,568 | 751,922 | 679,622 | |||||||||||||||||||
Investments — tax exempt | 399,160 | 398,388 | 400,804 | 399,091 | 404,644 | |||||||||||||||||||
Total interest earning assets | 5,872,206 | 5,792,842 | 5,796,383 | 5,762,343 | 5,563,111 | |||||||||||||||||||
Goodwill and core deposit intangibles | 76,784 | 81,124 | 83,708 | 84,098 | 84,486 | |||||||||||||||||||
Discontinued assets held for sale | — | 118,319 | 232,317 | 226,146 | 236,122 | |||||||||||||||||||
Other non-interest earning assets | 457,817 | 446,785 | 407,149 | 394,311 | 388,656 | |||||||||||||||||||
Total assets | $ | 6,406,807 | 6,439,070 | 6,519,557 | 6,466,898 | 6,272,375 | ||||||||||||||||||
Tangible assets | (note 1) | $ | 6,330,023 | 6,357,946 | 6,435,849 | 6,382,800 | 6,187,889 | |||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand deposits | $ | 989,259 | 989,293 | 1,006,242 | 1,043,497 | 1,109,005 | ||||||||||||||||||
Savings | 605,939 | 529,435 | 413,239 | 367,829 | 364,946 | |||||||||||||||||||
NOW | 782,018 | 771,017 | 735,164 | 727,517 | 764,738 | |||||||||||||||||||
Money market | 677,545 | 650,383 | 694,057 | 733,058 | 765,805 | |||||||||||||||||||
Certificates of deposit | 993,458 | 961,716 | 927,431 | 858,688 | 844,318 | |||||||||||||||||||
Total deposits | 4,048,219 | 3,901,844 | 3,776,133 | 3,730,589 | 3,848,812 | |||||||||||||||||||
Short-term borrowed funds | 151,656 | 197,683 | 189,519 | 374,913 | 396,870 | |||||||||||||||||||
FHLB advances | 1,344,855 | 1,405,279 | 1,528,039 | 1,354,944 | 1,010,458 | |||||||||||||||||||
Long-term debt | 293,489 | 292,899 | 293,592 | 300,549 | 303,052 | |||||||||||||||||||
Total borrowings | 1,790,000 | 1,895,861 | 2,011,150 | 2,030,406 | 1,710,380 | |||||||||||||||||||
Discontinued liabilities held for sale | — | 61,202 | 141,254 | 131,266 | 138,339 | |||||||||||||||||||
Other liabilities | 43,465 | 50,722 | 57,832 | 48,827 | 48,402 | |||||||||||||||||||
Total liabilities | 5,881,684 | 5,909,629 | 5,986,369 | 5,941,088 | 5,745,933 | |||||||||||||||||||
Stockholders’ equity | 525,123 | 529,441 | 533,188 | 525,810 | 526,442 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,406,807 | 6,439,070 | 6,519,557 | 6,466,898 | 6,272,375 | ||||||||||||||||||
Other comprehensive income (loss) in stockholders’ equity | 377 | (2,142 | ) | (4,379 | ) | (10,270 | ) | (8,700 | ) | |||||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 447,962 | 450,459 | 453,859 | 451,982 | 450,656 | |||||||||||||||||
Net Interest Margin | 3.27 | % | 3.35 | % | 3.56 | % | 3.63 | % | 3.75 | % | ||||||||||||||
Period End | ||||||||||||||||||||||||
Total loans, net | $ | 4,618,690 | 4,622,784 | 4,595,920 | 4,638,215 | 4,484,764 | ||||||||||||||||||
Total assets | 6,495,047 | 6,380,176 | 6,495,662 | 6,570,220 | 6,402,889 | |||||||||||||||||||
Total stockholders’ equity | 512,724 | 514,977 | 524,982 | 522,533 | 518,498 | |||||||||||||||||||
Class A common shares outstanding | 53,212,871 | 54,956,368 | 56,157,425 | 56,114,600 | 56,338,922 | |||||||||||||||||||
Class B common shares outstanding | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | |||||||||||||||||||
Cash dividends | 2,386,145 | 2,458,490 | 2,507,673 | 2,506,136 | 2,330,675 | |||||||||||||||||||
Common stock cash dividends per share | 0.041 | 0.041 | 0.041 | 0.041 | 0.038 | |||||||||||||||||||
Closing stock price | 8.61 | 10.96 | 13.81 | 14.22 | 14.84 | |||||||||||||||||||
High stock price for the quarter | 11.25 | 13.98 | 13.94 | 14.97 | 15.99 | |||||||||||||||||||
Low stock price for the quarter | 8.38 | 10.87 | 12.66 | 12.96 | 13.86 | |||||||||||||||||||
Book value per share | 8.83 | 8.61 | 8.60 | 8.57 | 8.47 |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Six | ||||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||||
(in thousands) | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 6/30/2007 | 6/30/2006 | |||||||||||||||||||||||
Net interest income | $ | 50,914 | 52,070 | 54,103 | 55,107 | 55,257 | 102,984 | 110,395 | ||||||||||||||||||||||
Provision for (recovery from) loan losses | 4,917 | 7,461 | 8,160 | 271 | (20 | ) | 12,378 | 143 | ||||||||||||||||||||||
Net Interest income after provision for loan losses | 45,997 | 44,609 | 45,943 | 54,836 | 55,277 | 90,606 | 110,252 | |||||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||
Service charges on deposits | 25,808 | 24,595 | 26,091 | 24,008 | 21,274 | 50,403 | 40,373 | |||||||||||||||||||||||
Other service charges and fees | 7,524 | 7,033 | 7,188 | 6,779 | 7,353 | 14,557 | 13,575 | |||||||||||||||||||||||
Securities activities, net | 212 | 621 | 200 | — | 458 | 833 | 457 | |||||||||||||||||||||||
Gain on sales of loans | 138 | 200 | 211 | 175 | 200 | 338 | 294 | |||||||||||||||||||||||
Gain associated with debt redemption | — | — | — | — | 1,092 | — | 1,528 | |||||||||||||||||||||||
(Loss) income from real estate operations | (12 | ) | — | — | — | 114 | (12 | ) | (982 | ) | ||||||||||||||||||||
Income from unconsolidated subsidiaries | 509 | 365 | 33 | — | — | 874 | — | |||||||||||||||||||||||
(Loss) gain on the sale of office properties, net | (42 | ) | (153 | ) | (148 | ) | (3 | ) | 1,806 | (195 | ) | 1,778 | ||||||||||||||||||
Other non-interest income | 2,547 | 2,386 | 2,590 | 2,752 | 2,663 | 4,933 | 4,945 | |||||||||||||||||||||||
Total non-interest income | 36,684 | 35,047 | 36,165 | 33,711 | 34,960 | 71,731 | 61,968 | |||||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||||
Employee compensation and benefits | 36,628 | 40,664 | 37,709 | 37,512 | 36,529 | 77,292 | 70,878 | |||||||||||||||||||||||
Occupancy and equipment | 15,923 | 15,942 | 16,242 | 15,015 | 13,424 | 31,865 | 26,034 | |||||||||||||||||||||||
Impairment of real estate held for sale | 1,056 | — | — | — | — | 1,056 | — | |||||||||||||||||||||||
Advertising | 4,079 | 5,788 | 10,331 | 8,599 | 7,205 | 9,867 | 15,729 | |||||||||||||||||||||||
Professional fees | 1,233 | 1,620 | 1,576 | 1,756 | 2,109 | 2,853 | 4,321 | |||||||||||||||||||||||
Costs associated with debt redemption | — | — | — | — | 1,034 | — | 1,457 | |||||||||||||||||||||||
Check losses | 2,731 | 1,857 | 2,639 | 2,855 | 1,875 | 4,588 | 3,121 | |||||||||||||||||||||||
Supplies and postage | 1,629 | 1,850 | 1,735 | 1,716 | 1,728 | 3,479 | 3,382 | |||||||||||||||||||||||
Telecommunication | 1,548 | 1,379 | 1,230 | 1,238 | 1,155 | 2,927 | 2,306 | |||||||||||||||||||||||
One-time termination benefits | — | 2,553 | — | — | — | 2,553 | — | |||||||||||||||||||||||
Other | 6,695 | 7,117 | 7,017 | 6,217 | 7,202 | 13,812 | 12,833 | |||||||||||||||||||||||
Total non-interest expense | 71,522 | 78,770 | 78,479 | 74,908 | 72,261 | 150,292 | 140,061 | |||||||||||||||||||||||
Income from bank operations business segment before income taxes | 11,159 | 886 | 3,629 | 13,639 | 17,976 | 12,045 | 32,159 | |||||||||||||||||||||||
Provision for income taxes | 754 | 247 | 11 | 3,801 | 5,272 | 1,001 | 9,293 | |||||||||||||||||||||||
Net income from bank operations business segment | $ | 10,405 | 639 | 3,618 | 9,838 | 12,704 | 11,044 | 22,866 | ||||||||||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
For the Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands except percentages and per share data) | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 6/30/2007 | 6/30/2006 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,690,488 | 5,666,507 | 5,702,063 | 5,669,550 | 5,460,276 | 5,678,563 | 5,525,419 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,590,419 | 4,551,448 | 4,520,332 | 4,457,382 | 4,189,321 | 4,571,041 | 4,263,356 | ||||||||||||||||||||
Average tangible assets | $ | 6,127,470 | 6,092,568 | 6,086,579 | 6,041,302 | 5,827,060 | 6,110,115 | 5,886,762 | ||||||||||||||||||||
Average tangible equity | $ | 504,091 | 502,827 | 505,580 | 500,655 | 491,459 | 503,672 | 487,830 | ||||||||||||||||||||
Borrowings to deposits and borrowings | % | 28.74 | 26.39 | 30.36 | 33.63 | 29.35 | 28.74 | 29.35 | ||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||||||||
Yield on earning assets | % | 6.70 | 6.71 | 6.83 | 6.81 | 6.58 | 6.70 | 6.48 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 3.70 | 3.65 | 3.62 | 3.52 | 3.14 | 3.67 | 3.10 | ||||||||||||||||||||
Interest spread | % | 3.00 | 3.06 | 3.21 | 3.29 | 3.44 | 3.03 | 3.39 | ||||||||||||||||||||
Net interest margin | % | 3.72 | 3.78 | 3.96 | 4.04 | 4.17 | 3.74 | 4.09 | ||||||||||||||||||||
Performance: | ||||||||||||||||||||||||||||
Efficiency ratio | % | 81.65 | 90.42 | 86.94 | 84.34 | 80.10 | 86.02 | 81.26 | ||||||||||||||||||||
Return on average tangible assets | % | 0.68 | 0.04 | 0.24 | 0.65 | 0.87 | 0.36 | 0.78 | ||||||||||||||||||||
Return on average tangible equity | % | 8.26 | 0.51 | 2.86 | 7.86 | 10.34 | 4.39 | 9.37 | ||||||||||||||||||||
Earning assets repricing: | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 54 | 54 | 52 | 52 | 52 | ||||||||||||||||||||||
Percent of earning assets that have variable rates | % | 46 | 46 | 48 | 48 | 48 | ||||||||||||||||||||||
One year Gap | % | (7 | ) | (3 | ) | (4 | ) | (4 | ) | (2 | ) |
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(in thousands) | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,618,690 | 4,622,784 | 4,595,920 | 4,638,215 | 4,484,764 | ||||||||||||||
Held to maturity securities | 507,593 | 424,487 | 475,790 | 479,859 | 470,994 | |||||||||||||||
Available for sale securities | 563,318 | 556,404 | 559,629 | 568,699 | 569,618 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 6,097 | 6,447 | 6,834 | 7,221 | 7,608 | |||||||||||||||
Other assets | 505,874 | 495,098 | 478,460 | 418,551 | 445,454 | |||||||||||||||
Total assets | $ | 6,272,061 | 6,175,709 | 6,187,122 | 6,183,034 | 6,048,927 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 971,260 | 1,031,628 | 995,930 | 1,011,531 | 1,119,608 | ||||||||||||||
NOW | 769,994 | 799,300 | 779,383 | 723,211 | 747,437 | |||||||||||||||
Savings | 608,791 | 598,579 | 465,172 | 370,169 | 372,212 | |||||||||||||||
Total core deposits | 2,350,045 | 2,429,507 | 2,240,485 | 2,104,911 | 2,239,257 | |||||||||||||||
Money market | 666,820 | 653,231 | 677,642 | 695,591 | 740,192 | |||||||||||||||
Certificates of deposit | 1,000,278 | 1,002,284 | 948,919 | 874,956 | 855,561 | |||||||||||||||
Total deposits | 4,017,143 | 4,085,022 | 3,867,046 | 3,675,458 | 3,835,010 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,397,051 | 1,297,055 | 1,517,058 | 1,687,062 | 1,127,065 | |||||||||||||||
Short term borrowings | 193,937 | 137,914 | 138,686 | 144,722 | 428,942 | |||||||||||||||
Long term debt | 29,397 | 29,654 | 29,923 | 30,192 | 37,378 | |||||||||||||||
Other liabilities | 67,747 | 63,108 | 68,460 | 81,437 | 68,641 | |||||||||||||||
Total liabilities | 5,705,275 | 5,612,753 | 5,621,173 | 5,618,871 | 5,497,036 | |||||||||||||||
Stockholder’s equity | 566,786 | 562,956 | 565,949 | 564,163 | 551,891 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,272,061 | 6,175,709 | 6,187,122 | 6,183,034 | 6,048,927 | ||||||||||||||
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
June 30, 2007 | June 30, 2006 | |||||||||||||||||||||||
(in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,215,606 | 30,181 | 5.45 | % | $ | 2,047,430 | 26,288 | 5.14 | % | ||||||||||||||
Commercial real estate | 1,384,405 | 28,646 | 8.28 | 1,480,314 | 30,965 | 8.37 | ||||||||||||||||||
Consumer | 635,370 | 11,836 | 7.45 | 546,624 | 10,175 | 7.45 | ||||||||||||||||||
Commercial business | 147,026 | 3,306 | 8.99 | 148,777 | 3,243 | 8.72 | ||||||||||||||||||
Small business | 295,483 | 5,944 | 8.05 | 255,701 | 5,093 | 7.97 | ||||||||||||||||||
Total loans | 4,677,890 | 79,913 | 6.83 | 4,478,846 | 75,764 | 6.77 | ||||||||||||||||||
Investments — tax exempt | 398,435 | 5,846 | (1) | 5.87 | 398,404 | 5,817 | (1) | 5.84 | ||||||||||||||||
Investments — taxable | 614,163 | 9,506 | 6.19 | 583,026 | 8,197 | 5.62 | ||||||||||||||||||
Total interest earning assets | 5,690,488 | 95,265 | 6.70 | % | 5,460,276 | 89,778 | 6.58 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 76,784 | 78,301 | ||||||||||||||||||||||
Other non-interest earning assets | 436,982 | 366,784 | ||||||||||||||||||||||
Total Assets | $ | 6,204,254 | $ | 5,905,361 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 605,940 | 3,401 | 2.25 | % | $ | 364,946 | 523 | 0.57 | % | ||||||||||||||
NOW | 782,018 | 1,749 | 0.90 | 764,738 | 1,023 | 0.54 | ||||||||||||||||||
Money market | 677,545 | 4,789 | 2.84 | 765,805 | 3,974 | 2.08 | ||||||||||||||||||
Certificates of deposit | 993,458 | 11,535 | 4.66 | 844,318 | 8,331 | 3.96 | ||||||||||||||||||
Total interest bearing deposits | 3,058,961 | 21,474 | 2.82 | 2,739,807 | 13,851 | 2.03 | ||||||||||||||||||
Short-term borrowed funds | 157,230 | 2,091 | 5.33 | 402,390 | 5,001 | 4.98 | ||||||||||||||||||
Advances from FHLB | 1,344,855 | 18,102 | 5.40 | 1,010,459 | 13,007 | 5.16 | ||||||||||||||||||
Long-term debt | 29,373 | 638 | 8.71 | 36,665 | 916 | 10.02 | ||||||||||||||||||
Total interest bearing liabilities | 4,590,419 | 42,305 | 3.70 | 4,189,321 | 32,775 | 3.14 | ||||||||||||||||||
Demand deposits | 989,434 | 1,109,361 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 50,800 | 51,442 | ||||||||||||||||||||||
Total Liabilities | 5,630,653 | 5,350,124 | ||||||||||||||||||||||
Stockholder’s equity | 573,601 | 555,237 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,204,254 | $ | 5,905,361 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | $ | 52,960 | 3.00 | % | $ | 57,003 | 3.44 | % | ||||||||||||||||
Tax equivalent adjustment | (2,046 | ) | (2,035 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | — | 289 | ||||||||||||||||||||||
Net interest income | 50,914 | 55,257 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.70 | % | 6.58 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.98 | 2.41 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.72 | % | 4.17 | % | ||||||||||||||||||||
(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 Six Months Ended | ||||||||||||||||||||||||
June 30, 2007 | June 30, 2006 | |||||||||||||||||||||||
(in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,198,636 | 59,692 | 5.43 | % | $ | 2,045,381 | 52,000 | 5.08 | % | ||||||||||||||
Commercial real estate | 1,402,559 | 58,139 | 8.29 | 1,518,882 | 61,792 | 8.14 | ||||||||||||||||||
Loan participations sold | — | — | 0.00 | 62,301 | 2,401 | 7.71 | ||||||||||||||||||
Consumer | 621,001 | 23,201 | 7.47 | 543,299 | 19,652 | 7.23 | ||||||||||||||||||
Commercial business | 151,562 | 6,793 | 8.96 | 125,783 | 5,505 | 8.75 | ||||||||||||||||||
Small business | 290,522 | 11,676 | 8.04 | 248,442 | 9,801 | 7.89 | ||||||||||||||||||
Total loans | 4,664,280 | 159,501 | 6.84 | 4,544,088 | 151,151 | 6.65 | ||||||||||||||||||
Investments — tax exempt | 397,410 | 11,648 | (1) | 5.86 | 395,796 | 11,548 | 5.84 | |||||||||||||||||
Investments — taxable | 616,873 | 19,202 | 6.23 | 585,535 | 16,430 | 5.61 | ||||||||||||||||||
Total interest earning assets | 5,678,563 | 190,351 | 6.70 | % | 5,525,419 | 179,129 | 6.48 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 76,960 | 78,496 | ||||||||||||||||||||||
Other non-interest earning assets | 431,552 | 361,343 | ||||||||||||||||||||||
Total Assets | $ | 6,187,075 | $ | 5,965,258 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 567,899 | 5,971 | 2.12 | % | $ | 348,125 | 836 | 0.48 | % | ||||||||||||||
NOW | 776,548 | 3,261 | 0.85 | 762,590 | 1,957 | 0.52 | ||||||||||||||||||
Money market | 664,039 | 8,727 | 2.65 | 797,576 | 7,958 | 2.01 | ||||||||||||||||||
Certificates of deposit | 977,674 | 22,517 | 4.64 | 844,093 | 15,855 | 3.79 | ||||||||||||||||||
Total deposits | 2,986,160 | 40,476 | 2.73 | 2,752,384 | 26,606 | 1.95 | ||||||||||||||||||
Short-term borrowed funds | 180,478 | 4,723 | 5.28 | 324,292 | 7,644 | 4.75 | ||||||||||||||||||
Advances from FHLB | 1,374,900 | 36,826 | 5.40 | 1,087,141 | 27,146 | 5.04 | ||||||||||||||||||
Secured borrowings | — | — | 0.00 | 62,301 | 2,401 | 7.71 | ||||||||||||||||||
Long-term debt | 29,503 | 1,265 | 8.65 | 37,238 | 1,664 | 9.01 | ||||||||||||||||||
Total interest bearing liabilities | 4,571,041 | 83,290 | 3.67 | 4,263,356 | 65,461 | 3.10 | ||||||||||||||||||
Demand deposits | 989,490 | 1,087,755 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 53,495 | 60,831 | ||||||||||||||||||||||
Total Liabilities | 5,614,026 | 5,411,942 | ||||||||||||||||||||||
Stockholder’s equity | 573,049 | 553,316 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,187,075 | $ | 5,965,258 | ||||||||||||||||||||
Net interest income/net interest spread | 107,061 | 3.03 | % | 113,668 | 3.39 | % | ||||||||||||||||||
Tax equivalent adjustment | (4,077 | ) | (4,042 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | — | 769 | ||||||||||||||||||||||
Net interest income | 102,984 | 110,395 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.70 | % | 6.48 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.96 | 2.39 | ||||||||||||||||||||||
Net interest margin | 3.74 | % | 4.09 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 3.74 | % | 4.14 | % | ||||||||||||||||||||
(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 Six | ||||||||||||||||||||||||||||
(in thousands) | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||
6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 6/30/2007 | 6/30/2006 | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 50,373 | 43,602 | 42,517 | 42,012 | 41,889 | 43,602 | 41,192 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (52 | ) | (151 | ) | — | (111 | ) | (60 | ) | (203 | ) | (128 | ) | |||||||||||||||
Commercial real estate | — | — | (7,000 | ) | — | — | — | — | ||||||||||||||||||||
Commercial business | — | — | — | — | (22 | ) | — | (34 | ) | |||||||||||||||||||
Consumer | (744 | ) | (538 | ) | (209 | ) | (232 | ) | (39 | ) | (1,282 | ) | (240 | ) | ||||||||||||||
Small business | (1,001 | ) | (438 | ) | (544 | ) | (93 | ) | (229 | ) | (1,439 | ) | (314 | ) | ||||||||||||||
Total charge-offs | (1,797 | ) | (1,127 | ) | (7,753 | ) | (436 | ) | (350 | ) | (2,924 | ) | (716 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | 15 | — | — | 170 | — | 15 | 178 | |||||||||||||||||||||
Commercial real estate | 304 | — | — | 10 | — | 304 | 9 | |||||||||||||||||||||
Commercial business | 777 | 42 | 379 | 54 | 116 | 819 | 227 | |||||||||||||||||||||
Consumer | 81 | 167 | 76 | 163 | 98 | 248 | 297 | |||||||||||||||||||||
Small business | 84 | 228 | 114 | 193 | 119 | 312 | 259 | |||||||||||||||||||||
Other | — | — | 109 | 80 | 160 | — | 423 | |||||||||||||||||||||
Total recoveries | 1,261 | 437 | 678 | 670 | 493 | 1,698 | 1,393 | |||||||||||||||||||||
Net (charge-offs) recoveries | (536 | ) | (690 | ) | (7,075 | ) | 234 | 143 | (1,226 | ) | 677 | |||||||||||||||||
Provision for (recovery from) loan losses | 4,917 | 7,461 | 8,160 | 271 | (20 | ) | 12,378 | 143 | ||||||||||||||||||||
Ending balance | $ | 54,754 | 50,373 | 43,602 | 42,517 | 42,012 | 54,754 | 42,012 | ||||||||||||||||||||
Annualized net charge-offs (recoveries) to average loans | % | 0.05 | 0.06 | 0.61 | (0.02 | ) | (0.01 | ) | 0.05 | (0.03 | ) | |||||||||||||||||
As of | ||||||||||||||||||||||||||||
6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | ||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 21,806 | 25,746 | 4,436 | 32,895 | 5,349 | ||||||||||||||||||||||
Nonaccrual tax certificates | 711 | 597 | 631 | 760 | 857 | |||||||||||||||||||||||
Real estate owned | 23,886 | 23,135 | 21,747 | 1,439 | 1,907 | |||||||||||||||||||||||
Other repossessed assets | — | — | — | — | — | |||||||||||||||||||||||
Total nonperforming assets | $ | 46,403 | 49,478 | 26,814 | 35,094 | 8,113 | ||||||||||||||||||||||
Nonperforming assets to total loans and other assets | % | 0.94 | 1.02 | 0.55 | 0.72 | 0.17 | ||||||||||||||||||||||
Allowance for loan losses to total loans | % | 1.17 | 1.08 | 0.94 | 0.91 | 0.93 | ||||||||||||||||||||||
Provision (recovery) to average loans | % | 0.42 | 0.64 | 0.70 | 0.02 | (0.00 | ) | |||||||||||||||||||||
Allowance to nonperforming loans | % | 251.10 | 195.65 | 982.91 | 129.25 | 785.42 |
(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 Six | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 6/30/2007 | 6/30/2006 | |||||||||||||||||||||
Net interest (expense) | $ | (4,861 | ) | (4,924 | ) | (4,952 | ) | (5,117 | ) | (4,798 | ) | (9,785 | ) | (9,416 | ) | |||||||||||||
Non-Interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 159 | 781 | 270 | 266 | 278 | 940 | 1,098 | |||||||||||||||||||||
Securities activities, net | 8,601 | 934 | 2,000 | 2,243 | 2,372 | 9,535 | 4,913 | |||||||||||||||||||||
Non-interest income | 8,760 | 1,715 | 2,270 | 2,509 | 2,650 | 10,475 | 6,011 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 1,280 | 426 | 1,050 | 1,107 | 1,061 | 1,706 | 2,548 | |||||||||||||||||||||
Advertising and promotion | 130 | 70 | 70 | 49 | 195 | 200 | 289 | |||||||||||||||||||||
Professional fees | 135 | 93 | 56 | 212 | 264 | 228 | 370 | |||||||||||||||||||||
Other | 70 | 144 | 194 | 243 | 297 | 214 | 568 | |||||||||||||||||||||
Non-interest expense | 1,615 | 733 | 1,370 | 1,611 | 1,817 | 2,348 | 3,775 | |||||||||||||||||||||
Income (loss) from parent company activities before income taxes | 2,284 | (3,942 | ) | (4,052 | ) | (4,219 | ) | (3,965 | ) | (1,658 | ) | (7,180 | ) | |||||||||||||||
Provision (benefit) for income taxes | 961 | (1,099 | ) | (1,484 | ) | (1,748 | ) | (1,702 | ) | (138 | ) | (2,776 | ) | |||||||||||||||
Net income (loss) from parent company business segment | $ | 1,323 | (2,843 | ) | (2,568 | ) | (2,471 | ) | (2,263 | ) | (1,520 | ) | (4,404 | ) | ||||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||||||||||
(in thousands) | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash | $ | 28,332 | 14,699 | 4,852 | 2,246 | 8,796 | ||||||||||||||||||||||
Securities | 193,979 | 194,257 | 103,218 | 101,621 | 99,486 | |||||||||||||||||||||||
Investment in subsidiaries | 566,787 | 562,958 | 661,467 | 662,224 | 654,651 | |||||||||||||||||||||||
Investment in unconsolidated subsidiaries | 8,685 | 7,910 | 11,996 | 11,996 | 11,996 | |||||||||||||||||||||||
Other assets | 8,370 | 2,929 | 12,165 | 12,256 | 10,716 | |||||||||||||||||||||||
Total assets | $ | 806,153 | 782,753 | 793,698 | 790,343 | 785,645 | ||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
Subordinated debentures and notes payable | $ | 289,040 | 263,266 | 263,266 | 263,266 | 263,266 | ||||||||||||||||||||||
Other liabilities | 4,389 | 4,510 | 5,450 | 4,544 | 3,881 | |||||||||||||||||||||||
Total liabilities | 293,429 | 267,776 | 268,716 | 267,810 | 267,147 | |||||||||||||||||||||||
Stockholders’ equity | 512,724 | 514,977 | 524,982 | 522,533 | 518,498 | |||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 806,153 | 782,753 | 793,698 | 790,343 | 785,645 | ||||||||||||||||||||||