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BankAtlantic Bancorp Reports
Financial Results for the Third Quarter 2007
Financial Results for the Third Quarter 2007
FORT LAUDERDALE, Florida — October 25, 2007 —BankAtlantic Bancorp, Inc. (NYSE: BBX) today announced a net loss of ($29.6) million, or ($0.52) per diluted share for the quarter ended September 30, 2007, compared to net income of $2.5 million, or $0.04 per diluted share, for the third quarter of 2006. The company recorded a loss from continuing operations of ($29.6) million, or ($0.52) per diluted share for the 2007 quarter, compared to income from continuing operations of $7.4 million, or $0.12 per diluted share, for the 2006 quarter.
Net loss for the nine months of 2007 was ($12.3) million, or ($0.21) per diluted share, compared to net income of $17.1 million, or $0.27 per diluted share, for the comparable 2006 period. Income (loss) from continuing operations for the nine months of 2007 was ($20.1) million, or ($0.34) per diluted share, compared to $25.8 million, or $0.41 per diluted share, for the comparable 2006 period.
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “This quarter’s financial results reflect the continuing impact of the current economic environment on our business, particularly the deteriorating residential real estate market, contributing to higher non-performing asset levels, increased loan loss reserves, further valuation impairment of real estate owned and held for sale, and net interest margin compression. The impact of the decline in the Florida residential real estate market has been significant. We do not anticipate that market conditions will improve in the near-term and expect that the negative factors impacting this quarter’s results may continue to affect us in the fourth quarter and into 2008.
“While our results this quarter were disappointing, our balance sheet remains strong. We remain well capitalized and have significant liquidity. Additionally, as detailed later in this release, we have decided to slow our store expansion program in support of our commitment to manage expenses in the current economic environment.
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BankAtlantic Highlights
Net Income —“For the third quarter of 2007, BankAtlantic’s net loss was ($27.1) million, down from net income of $9.8 million in the comparable 2006 quarter. As discussed in detail later in this release, the decline was driven by increased loan loss provisions and impairments of real estate owned and held for sale. Other factors contributing to the decline included net interest margin compression and costs associated with opening new stores, offset in part by an increase in non-interest income.
Credit Quality— “Non-performing loans increased from $21.8 million at June 30, 2007 to $165.4 million at September 30, 2007 resulting primarily from the placement of eleven commercial real estate loans totaling $148.7 million on non-accrual status. As a result, the ratio of non-performing loans to total loans increased from 0.47% at June 30, 2007 to 3.53% at September 30, 2007 and the ratio of non-performing assets to total loans plus other assets increased from 0.94% at June 30, 2007 to 3.74% at September 30, 2007. The Bank’s loss experience for the quarter ended September 30, 2007 was a net charge-off of $11.3 million compared to a net recovery of $0.2 million for the quarter ended September 30, 2006. Included in the $11.3 million net charge-off was $8.8 million related to the write-down of one ‘builder land bank loan’ and consumer net charge-offs of $1.6 million, representing primarily home equity lines of credit. (‘Builder land bank loans’ are characterized as loans made to borrowers with agreements to sell the underlying collateral to national and local home builders pursuant to option contracts.)
“The rapid deterioration in the Florida real estate market and the associated increase in non-performing loans required an increase in our allowance for loan losses at quarter-end. The provision for loan loss in the third quarter of 2007 was $48.9 million or 1.04% of average loans for the third quarter of 2007 versus $0.3 million or 0.01% of average loans for the third quarter of 2006. The allowance for loan losses increased to $92.4 million (1.97% of total loans) at September 30, 2007 compared to $42.5 million (0.91% of total loans) at September 30, 2006. This quarter’s provision included $27.8 million in specific reserves on nine non-performing loans aggregating $104.8 million. The ratio of the allowance for loan losses less specific reserves, to non-performing loans without specific reserves stood at 107% at September 30, 2007 versus 129% at September 30, 2006. Characteristics of our Commercial, Residential and Consumer loan portfolios are detailed below.
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Commercial Loans—“The Bank’s Commercial Real Estate loan portfolio at September 30, 2007 totaled $1.3 billion. This portfolio consists of retail, industrial, and residential acquisition, development and construction loans. As we have previously disclosed, most of these loans are personally guaranteed by the borrower, 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.
“The categories within this ‘Commercial Residential’ portfolio where we believe we have exposure to the declines in the real estate market are as follows:
• | Builder land bank loans: This category of 13 loans aggregates $149.3 million, of which five loans totaling $81.1 million are non-accrual and an additional three loans totaling $28.7 million were considered classified assets at quarter-end. | |
• | Land acquisition and development loans: This category of 37 loans aggregates $218.5 million, of which three loans totaling $13.2 million are non-accrual and an additional five loans totaling $19.7 million were considered classified assets at quarter end. | |
• | Land acquisition, development and construction loans: This category of 24 loans aggregates $165.3 million, of which seven loans totaling $62.0 million are non-accrual and an additional four loans totaling $41.9 million were considered classified assets at quarter end. |
“We are monitoring this portfolio very closely due to rapidly changing conditions impacting both the underlying collateral values and the projected repayment sources in the current environment. We do not anticipate that the housing market will improve in the near-term, and accordingly, additional downgrades and additional provisions relating to this portfolio may be required.
Purchased Residential Loans— “Our Purchased Residential Mortgage portfolio was $2.2 billion at quarter-end, representing approximately 47% of the Bank’s total loans. As we have previously indicated, this portfolio does not include sub-prime or negative amortizing loans, 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 68%. Quarter-end delinquencies, including non-accrual loans, were 0.50% of the unpaid principal balance, and our loss history on this portfolio over the past twelve months is approximately 0.01% of the average outstanding balances.
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Consumer Loans- “Our Consumer loan portfolio was $671.7 million at quarter-end, with total delinquencies at 1.34%. Home equity loans represent $647.5 million of this portfolio. At origination, these loans had average loan-to-values, inclusive of first mortgages, of 67%, and Beacon scores on average of 705.”
Store Expansion Program— BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “While we remain committed to our store expansion program in the long-term and continue to believe that new stores remain an attractive way to grow our franchise, we have decided to slow the pace of our new store growth for 2008, based on market conditions. We anticipate completing our previously announced goal of opening 20 stores in 2007, and opening 6 new stores in 2008. Growth of new stores beyond this level in 2008 will be dependent upon the economic environment and corporate profitability.
“During the third quarter of 2007, we opened seven new stores, including our 100th store, bringing the total to 13 stores opened to date in 2007. We have opened a total of 30 new stores since January 1, 2005, which as of September 30, 2007 had balances of $222.3 million in core deposits and $343.5 million in total deposits. Core deposits include DDA, NOW and savings accounts. Since the third quarter of 2006, the new stores have generated net growth of $164.8 million in core deposits, $233.2 million of total deposits, and over 82,000 of new core deposit accounts. However, because of the time required for newly opened stores to breakeven, the expenses associated with BankAtlantic’s store expansion program negatively impacted BankAtlantic’s third quarter pre-tax income by approximately $3.9 million and are anticipated to impact the full year’s pre-tax income by between $14.0 to $15.0 million. As of quarter-end, we had a total of 101 stores throughout Florida.
Deposit Accounts and Balances— “At quarter-end, ‘total bank’ and ‘same store’ core deposit balances increased 9.8% and 7.5%, respectively, over the third quarter of 2006, representing a total bank net increase of $205.5 million in core deposits and $293.4 million in total deposits. In the third quarter of 2007, BankAtlantic opened nearly 60,000 new core deposit accounts.
Net Interest Margin and Earning Assets— “Net interest income for the third quarter of 2007 was $49.2 million compared to $55.1 million in the corresponding 2006 quarter, reflecting a 45 basis point decline in the tax equivalent net interest margin. The tax equivalent net interest margin was 3.59% in the third quarter of 2007, down from 4.04% in the corresponding quarter of 2006. Average earning assets increased $80.6 million over the third quarter of 2006, with growth in lower yielding residential real estate loans offset by declines in higher yielding commercial real estate loans. Average core deposits and total deposits increased $187.9 million and $253.5 million, respectively, over the third quarter of 2006.
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Non-interest income —“Non-interest income for the third quarter was $35.9 million, a 6.4% increase over the comparable 2006 period. Additionally, non-interest income as a percent of total revenues rose to 42.1% in the third quarter of 2007 compared to 38.0% in the comparable 2006 quarter, reflecting an increase in the number of transaction accounts as well as an increase in revenue not directly impacted by the interest rate environment.
Non-interest expense — “Non-interest expense for the third quarter of 2007 increased $6.6 million from the third quarter of 2006 to $81.5 million, which included $10.9 million in real estate impairments and $4.8 million in increased expenses, year-over-year, related to our store expansion program. Additionally, non-interest expenses increased from the second to the third quarter of 2007 by approximately $10.0 million, reflecting $10.9 million in impairment charges of real estate owned or held for sale in the third quarter compared to $1.1 million of impairments in the second quarter. Excluding these impairments, non-interest expense during these quarters would have been essentially flat, while absorbing approximately $1.5 million in incremental expense from the second to third quarter of 2007 related to our store expansion program.
“In summary, we are working closely with our residential land borrowers in this difficult economic environment. We continue to evaluate available opportunities to reduce expenses and improve profitability. At the same time, we are analyzing new deposit products and services with a goal of increasing our core deposits and providing compelling value to our customers,” concluded Jarett S. Levan.
BankAtlantic Bancorp:
Stifel Investment— BankAtlantic Bancorp’s Chairman and CEO, Alan B. Levan, further commented, “We continue to hold 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, the fair-value of which at quarter-end aggregated approximately $130.7 million. We recorded a $1.5 million pre-tax loss for the quarter associated with the change in value of the warrants in the third quarter of 2007, versus the $6.1 million gain recorded in the second quarter of 2007, and
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the $1.5 million loss recorded in the first quarter of 2007. Currently, pre-tax unrealized gains in the Stifel holdings are approximately $37.3 million (based on the October 22, 2007 closing price). Excluded from this amount is the possible contingent earn-out, if any, which may be 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 level of revenues annually during the earn-out period, the earn-out would approximate $20.0 million. The private client earn-out is capped at $40.0 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 $25.0 million for each of the two years following closing. 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.
Cash Dividend— “BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.0412 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on October 3rd, 2007. The third quarter’s dividend declaration marked BankAtlantic Bancorp’s 57th consecutive quarterly dividend payment.”
Financial Highlights:
Third Quarter, 2007 Compared to Third Quarter, 2006
BankAtlantic Bancorp — consolidated:
• | (Loss) from continuing operations of ($29.6) million vs. income of $7.4 million | ||
• | Diluted (loss) earnings per share from continuing operations of ($0.52 ) vs. $0.12 | ||
• | Return on average tangible equity from continuing operations was (27.45%) vs. 6.52% | ||
• | Book value per share was $8.42 vs. $8.57 |
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BankAtlantic:
• | Business segment (loss) income was ($27.1) million vs. $9.8 million | ||
• | Nearly 60,000 new core deposit accounts opened | ||
• | Return on average tangible assets was (1.75%) vs. 0.65% | ||
• | Return on average tangible equity was (21.35%) vs. 7.86% | ||
• | Tax equivalent net interest margin decreased to 3.59% vs. 4.04% | ||
• | Non-interest income was $35.9 million vs. $33.7 million in 2006, an increase of 6% | ||
• | Non-interest expense was $81.5 million vs. $74.9 million in 2006, an increase of 9% | ||
• | Non-interest expense, before the $10.9 million impairment charges associated with real estate owned and held for sale in 2007, was $70.6 million vs. $74.9 million, a decrease of 6% |
Year-to-date 2007 Compared to Year-to-date 2006
BankAtlantic Bancorp — consolidated:
• | (Loss) from continuing operations was ($20.1) million vs. income of $25.8 million | ||
• | Diluted (loss) earnings per share from continuing operations was ($0.34) vs. $0.41 | ||
• | Return on average tangible equity from continuing operations was (6.04%) vs. 6.56% |
BankAtlantic:
• | Business segment (loss) income was ($16.1) million vs. $32.7 million | ||
• | Nearly 200,000 new core deposit accounts opened | ||
• | Return on average tangible assets was (0.35%) vs. 0.73% | ||
• | Return on average tangible equity was (4.24%) vs. 8.86% | ||
• | Non-interest income, before $1.5 million of gains associated with debt redemption in 2006, was $107.6 million during 2007 vs. $94.2 million, an increase of 14% | ||
• | Non-interest expense, before the $12.0 million impairment charge associated with real estate owned and real estate held for sale and the one-time termination benefits of $2.6 million in 2007 and the $1.5 million costs associated with debt redemption in 2006, grew to $217.2 million vs. $213.5 million, an increase of 2% |
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BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Friday, October 26, 2007, at 11:00 a.m. (Eastern Time).
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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 number19442017.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Friday, November 9, 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 is19442017.
Webcast Information:
Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visit www.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Webcast” navigation link, or go directly tohttp://www.visualwebcaster.com/event.asp?id=42821. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Friday, November 9, 2007.
BankAtlantic Bancorp’s third 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 third 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 provides a full line of products and services encompassing consumer and commercial banking. On February 28, 2007, BankAtlantic Bancorp announced that it had completed the sale of its wholly-owned subsidiary, Ryan Beck Holdings, Inc. and its subsidiaries to Stifel Financial Corp., Inc. (NYSE: SF). As a consequence of the sale, BankAtlantic Bancorp currently holds a 16% ownership interest in Stifel Financial Corp.
BankAtlantic Bancorp (NYSE: BBX) is a diversified financial services holding company and the parent company of BankAtlantic. BankAtlantic Bancorp provides a full line of products and services encompassing consumer and commercial banking. On February 28, 2007, BankAtlantic Bancorp announced that it had completed the sale of its wholly-owned subsidiary, Ryan Beck Holdings, Inc. and its subsidiaries to Stifel Financial Corp., Inc. (NYSE: SF). As a consequence of the sale, BankAtlantic Bancorp currently holds a 16% ownership interest in Stifel Financial Corp.
About BankAtlantic:
BankAtlantic, “Florida’s Most Convenient Bank” is one of the largest financial institutions headquartered in Florida and provides a comprehensive offering of banking services and products via its broad network of community stores and its online banking division — BankAtlantic.com. BankAtlantic has over 100 stores and operates more than 250 conveniently
BankAtlantic, “Florida’s Most Convenient Bank” is one of the largest financial institutions headquartered in Florida and provides a comprehensive offering of banking services and products via its broad network of community stores and its online banking division — BankAtlantic.com. BankAtlantic has over 100 stores and operates more than 250 conveniently
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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
* To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on our website: www.BankAtlanticBancorp.com.
BankAtlantic Bancorp Contact Info:
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:
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
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
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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 a sustained downturn in the real estate market and other 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; the risks of additional charge offs, impairments and required increases in our allowance for loan losses; 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; the value of our assets and on the ability of our borrowers to service their debt obligations; 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 initiative and the ability to achieve additional cost savings; the success of BankAtlantic’s new store expansion program, including the opening of the anticipated number of new stores in 2007 and 2008 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 Nine | ||||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||||
9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 9/30/2007 | 9/30/2006 | ||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||
Net (loss) income from continuing operations | $ | (29,610 | ) | 11,728 | (2,204 | ) | 1,048 | 7,366 | (20,086 | ) | 25,831 | |||||||||||||||||||
Net (loss) income | $ | (29,610 | ) | 11,620 | 5,716 | (1,670 | ) | 2,524 | (12,274 | ) | 17,057 | |||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||
Basic | 56,832 | 59,190 | 60,635 | 61,007 | 61,046 | 58,872 | 61,125 | |||||||||||||||||||||||
Diluted | 56,832 | 59,929 | 60,635 | 62,278 | 62,412 | 58,872 | 62,664 | |||||||||||||||||||||||
Key Performance Ratios | ||||||||||||||||||||||||||||||
Basic (loss) earnings per share from continuing operations | $ | (0.52 | ) | 0.20 | (0.04 | ) | 0.02 | 0.12 | (0.34 | ) | 0.42 | |||||||||||||||||||
Diluted (loss) earnings per share from continuing operations | $ | (0.52 | ) | 0.20 | (0.04 | ) | 0.02 | 0.12 | (0.34 | ) | 0.41 | |||||||||||||||||||
Basic (loss) earnings per share | $ | (0.52 | ) | 0.20 | 0.09 | (0.03 | ) | 0.04 | (0.21 | ) | 0.28 | |||||||||||||||||||
Diluted (loss) earnings per share | $ | (0.52 | ) | 0.19 | 0.09 | (0.03 | ) | 0.04 | (0.21 | ) | 0.27 | |||||||||||||||||||
Return on average tangible assets from continuing operations | (note 1) | (1.85 | )% | 0.74 | (0.14 | ) | 0.07 | 0.46 | (0.42 | ) | 0.55 | |||||||||||||||||||
Return on average tangible equity from continuing operations | (note 1) | (27.45 | )% | 10.47 | (1.96 | ) | 0.92 | 6.52 | (6.04 | ) | 6.56 | |||||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||
Assets | $ | 6,479 | 6,407 | 6,439 | 6,520 | 6,467 | 6,442 | 6,376 | ||||||||||||||||||||||
Tangible assets | (note 1) | $ | 6,402 | 6,330 | 6,358 | 6,436 | 6,383 | 6,363 | 6,291 | |||||||||||||||||||||
Loans | $ | 4,693 | 4,678 | 4,651 | 4,655 | 4,611 | 4,674 | 4,567 | ||||||||||||||||||||||
Investments | $ | 1,244 | 1,194 | 1,142 | 1,141 | 1,151 | 1,194 | 1,106 | ||||||||||||||||||||||
Deposits and escrows | $ | 3,984 | 4,048 | 3,902 | 3,776 | 3,731 | 3,978 | 3,803 | ||||||||||||||||||||||
Stockholders’ equity | $ | 506 | 525 | 529 | 533 | 526 | 520 | 525 | ||||||||||||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 431 | 448 | 450 | 454 | 452 | 443 | 449 |
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)
September 30, | December 31, | |||||||
(in thousands, except share data) | 2007 | 2006 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 138,170 | 138,904 | |||||
Securities available for sale (at fair value) | 715,458 | 651,316 | ||||||
Investment securities held-to-maturity (approximate fair value: $252,341 and $209,020) | 245,950 | 206,682 | ||||||
Financial instruments accounted for at fair value | 13,388 | — | ||||||
Tax certificates net of allowance of $3,894 and $3,699 | 204,746 | 195,391 | ||||||
Loans receivable, net of allowance for loan losses of $92,358 and $43,602 | 4,586,625 | 4,595,920 | ||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 74,903 | 80,217 | ||||||
Discontinued operations assets held for sale | — | 190,763 | ||||||
Real estate held for development and sale | 21,985 | 25,333 | ||||||
Real estate owned | 17,159 | 21,747 | ||||||
Office properties and equipment, net | 251,445 | 219,717 | ||||||
Goodwill and other intangible assets | 76,236 | 77,324 | ||||||
Other assets | 139,528 | 92,348 | ||||||
Total assets | $ | 6,485,593 | 6,495,662 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | ||||||||
Demand | $ | 895,263 | 995,920 | |||||
NOW | 801,289 | 779,383 | ||||||
Savings | 613,010 | 465,172 | ||||||
Money market | 656,218 | 677,642 | ||||||
Certificates of deposit | 1,002,197 | 948,919 | ||||||
Total deposits | 3,967,977 | 3,867,036 | ||||||
Advances from FHLB | 1,417,047 | 1,517,058 | ||||||
Securities sold under agreements to repurchase | 64,837 | 101,932 | ||||||
Federal funds purchased and other short term borrowings | 175,000 | 32,026 | ||||||
Subordinated debentures and bonds payable | 29,125 | 29,923 | ||||||
Junior subordinated debentures | 294,195 | 263,266 | ||||||
Discontinued operations liabilities held for sale | — | 95,246 | ||||||
Other liabilities | 65,523 | 64,193 | ||||||
Total liabilities | 6,013,704 | 5,970,680 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 561 | 611 | ||||||
Additional paid-in capital | 215,524 | 260,460 | ||||||
Retained earnings | 246,357 | 265,089 | ||||||
Total stockholders’ equity before accumulated other comprehensive income (loss) | 462,442 | 526,160 | ||||||
Accumulated other comprehensive income (loss) | 9,447 | (1,178 | ) | |||||
Total stockholders’ equity | 471,889 | 524,982 | ||||||
Total liabilities and stockholders’ equity | $ | 6,485,593 | 6,495,662 | |||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 9/30/2007 | 9/30/2006 | |||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||
Interest and fees on loans | $ | 80,082 | 79,914 | 79,587 | 81,019 | 80,790 | 239,583 | 231,941 | ||||||||||||||||||||
Interest on securities available for sale | 4,835 | 4,628 | 4,561 | 4,472 | 4,483 | 14,024 | 13,102 | |||||||||||||||||||||
Interest on tax exempt securities | 3,838 | 3,800 | 3,796 | 3,817 | 3,804 | 11,434 | 11,472 | |||||||||||||||||||||
Interest and dividends on taxable investments and tax certificates | 6,141 | 5,433 | 5,596 | 6,543 | 6,039 | 17,170 | 14,811 | |||||||||||||||||||||
Total interest income | 94,896 | 93,775 | 93,540 | 95,851 | 95,116 | 282,211 | 271,326 | |||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Interest on deposits | 22,558 | 21,473 | 19,002 | 17,258 | 15,095 | 63,033 | 41,701 | |||||||||||||||||||||
Interest on advances from FHLB | 18,987 | 18,103 | 18,723 | 20,837 | 18,509 | 55,813 | 45,655 | |||||||||||||||||||||
Interest on short-term borrowed funds | 2,940 | 2,010 | 2,555 | 2,505 | 5,078 | 7,505 | 12,584 | |||||||||||||||||||||
Interest on secured borrowings | — | — | — | — | — | — | 2,401 | |||||||||||||||||||||
Interest on long-term debt | 6,652 | 6,136 | 6,114 | 6,184 | 6,521 | 18,902 | 18,861 | |||||||||||||||||||||
Capitalized interest on real estate development | — | — | — | (85 | ) | (75 | ) | — | (844 | ) | ||||||||||||||||||
Total interest expense | 51,137 | 47,722 | 46,394 | 46,699 | 45,128 | 145,253 | 120,358 | |||||||||||||||||||||
NET INTEREST INCOME | 43,759 | 46,053 | 47,146 | 49,152 | 49,988 | 136,958 | 150,968 | |||||||||||||||||||||
Provision for loan losses | 48,949 | 4,917 | 7,461 | 8,160 | 271 | 61,327 | 414 | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | (5,190 | ) | 41,136 | 39,685 | 40,992 | 49,717 | 75,631 | 150,554 | ||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||
Service charges on deposits | 25,894 | 25,808 | 24,595 | 26,091 | 24,008 | 76,297 | 64,381 | |||||||||||||||||||||
Other service charges and fees | 7,222 | 7,524 | 7,033 | 7,188 | 6,779 | 21,779 | 20,354 | |||||||||||||||||||||
Securities activities, net | 1,207 | 8,813 | 1,555 | 2,199 | 2,243 | 11,575 | 7,614 | |||||||||||||||||||||
Gain on sales of loans | 88 | 138 | 200 | 211 | 175 | 426 | 469 | |||||||||||||||||||||
Gain associated with debt redemption | — | — | — | — | — | — | 1,528 | |||||||||||||||||||||
Income from unconsolidated subsidiaries | 348 | 669 | 1,146 | 303 | 266 | 2,163 | 1,364 | |||||||||||||||||||||
(Loss) gain on the sale of office properties and equipment, net | (362 | ) | (42 | ) | (153 | ) | (148 | ) | (3 | ) | (557 | ) | 1,775 | |||||||||||||||
Other | 2,225 | 2,574 | 2,376 | 2,581 | 2,740 | 7,175 | 6,706 | |||||||||||||||||||||
Total non-interest income | 36,622 | 45,484 | 36,752 | 38,425 | 36,208 | 118,858 | 104,191 | |||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Employee compensation and benefits | 34,258 | 37,908 | 41,090 | 38,759 | 38,619 | 113,256 | 112,045 | |||||||||||||||||||||
Occupancy and equipment | 16,954 | 15,927 | 15,944 | 16,247 | 15,018 | 48,825 | 41,061 | |||||||||||||||||||||
Impairment of real estate held for sale | 3,655 | 1,056 | — | — | — | 4,711 | — | |||||||||||||||||||||
Impairment of real estate owned | 7,233 | 66 | — | — | — | 7,299 | — | |||||||||||||||||||||
Advertising and promotion | 4,276 | 4,209 | 5,858 | 10,400 | 8,649 | 14,343 | 24,667 | |||||||||||||||||||||
Professional fees | 2,542 | 1,368 | 1,713 | 1,632 | 1,968 | 5,623 | 6,659 | |||||||||||||||||||||
Costs associated with debt redemption | — | — | — | — | — | — | 1,457 | |||||||||||||||||||||
Check losses | 3,341 | 2,731 | 1,857 | 2,639 | 2,855 | 7,929 | 5,976 | |||||||||||||||||||||
Supplies and postage | 1,159 | 1,632 | 1,853 | 1,736 | 1,719 | 4,644 | 5,117 | |||||||||||||||||||||
Telecommunication | 1,286 | 1,556 | 1,381 | 1,233 | 1,241 | 4,223 | 3,552 | |||||||||||||||||||||
One-time termination benefits | — | — | 2,553 | — | — | 2,553 | — | |||||||||||||||||||||
Other | 6,975 | 6,724 | 7,244 | 7,195 | 6,438 | 20,943 | 19,811 | |||||||||||||||||||||
Total non-interest expense | 81,679 | 73,177 | 79,493 | 79,841 | 76,507 | 234,349 | 220,345 | |||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (50,247 | ) | 13,443 | (3,056 | ) | (424 | ) | 9,418 | (39,860 | ) | 34,400 | |||||||||||||||||
(Benefit) provision for income taxes | (20,637 | ) | 1,715 | (852 | ) | (1,472 | ) | 2,052 | (19,774 | ) | 8,569 | |||||||||||||||||
(Loss) income from continuing operations | (29,610 | ) | 11,728 | (2,204 | ) | 1,048 | 7,366 | (20,086 | ) | 25,831 | ||||||||||||||||||
Discontinued operations | — | (108 | ) | 7,920 | (2,718 | ) | (4,842 | ) | 7,812 | (8,774 | ) | |||||||||||||||||
Net (loss) income | $ | (29,610 | ) | 11,620 | 5,716 | (1,670 | ) | 2,524 | (12,274 | ) | 17,057 | |||||||||||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
Consolidated Average Balance Sheet (unaudited)
For the Three Months Ended | ||||||||||||||||||||||
(in thousands except percentages and per share data) | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | |||||||||||||||||
Loans: | ||||||||||||||||||||||
Residential real estate | $ | 2,245,138 | 2,215,606 | 2,181,478 | 2,176,047 | 2,130,077 | ||||||||||||||||
Commercial real estate | 1,346,842 | 1,384,405 | 1,420,944 | 1,462,005 | 1,498,192 | |||||||||||||||||
Consumer | 662,320 | 635,370 | 606,472 | 584,972 | 563,002 | |||||||||||||||||
Commercial business | 134,390 | 147,026 | 156,237 | 155,884 | 152,796 | |||||||||||||||||
Small business | 304,388 | 295,483 | 285,387 | 276,103 | 267,263 | |||||||||||||||||
Total Loans | 4,693,078 | 4,677,890 | 4,650,518 | 4,655,011 | 4,611,330 | |||||||||||||||||
Investments — taxable | 841,486 | 795,156 | 743,936 | 740,568 | 751,922 | |||||||||||||||||
Investments — tax exempt | 402,482 | 399,160 | 398,388 | 400,804 | 399,091 | |||||||||||||||||
Total interest earning assets | 5,937,046 | 5,872,206 | 5,792,842 | 5,796,383 | 5,762,343 | |||||||||||||||||
Goodwill and core deposit intangibles | 76,419 | 76,784 | 81,124 | 83,708 | 84,098 | |||||||||||||||||
Discontinued assets held for sale | — | — | 118,319 | 232,317 | 226,146 | |||||||||||||||||
Other non-interest earning assets | 465,427 | 457,817 | 446,785 | 407,149 | 394,311 | |||||||||||||||||
Total assets | $ | 6,478,892 | 6,406,807 | 6,439,070 | 6,519,557 | 6,466,898 | ||||||||||||||||
Tangible assets | (note 1) | $ | 6,402,473 | 6,330,023 | 6,357,946 | 6,435,849 | 6,382,800 | |||||||||||||||
Deposits: | ||||||||||||||||||||||
Demand deposits | $ | 922,293 | 989,259 | 989,293 | 1,006,242 | 1,043,497 | ||||||||||||||||
Savings | 611,862 | 605,939 | 529,435 | 413,239 | 367,829 | |||||||||||||||||
NOW | 792,462 | 782,018 | 771,017 | 735,164 | 727,517 | |||||||||||||||||
Money market | 660,925 | 677,545 | 650,383 | 694,057 | 733,058 | |||||||||||||||||
Certificates of deposit | 996,415 | 993,458 | 961,716 | 927,431 | 858,688 | |||||||||||||||||
Total deposits | 3,983,957 | 4,048,219 | 3,901,844 | 3,776,133 | 3,730,589 | |||||||||||||||||
Short-term borrowed funds | 225,034 | 151,656 | 197,683 | 189,519 | 374,913 | |||||||||||||||||
FHLB advances | 1,398,245 | 1,344,855 | 1,405,279 | 1,528,039 | 1,354,944 | |||||||||||||||||
Long-term debt | 318,762 | 293,489 | 292,899 | 293,592 | 300,549 | |||||||||||||||||
Total borrowings | 1,942,041 | 1,790,000 | 1,895,861 | 2,011,150 | 2,030,406 | |||||||||||||||||
Discontinued liabilities held for sale | — | — | 61,202 | 141,254 | 131,266 | |||||||||||||||||
Other liabilities | 46,805 | 43,465 | 50,722 | 57,832 | 48,827 | |||||||||||||||||
Total liabilities | 5,972,803 | 5,881,684 | 5,909,629 | 5,986,369 | 5,941,088 | |||||||||||||||||
Stockholders’ equity | 506,089 | 525,123 | 529,441 | 533,188 | 525,810 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,478,892 | 6,406,807 | 6,439,070 | 6,519,557 | 6,466,898 | ||||||||||||||||
Other comprehensive (loss) income in stockholders’ equity | (1,765 | ) | 377 | (2,142 | ) | (4,379 | ) | (10,270 | ) | |||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 431,435 | 447,962 | 450,459 | 453,859 | 451,982 | |||||||||||||||
Net Interest Margin | 3.11 | % | 3.27 | % | 3.35 | % | 3.56 | % | 3.63 | % | ||||||||||||
Period End | ||||||||||||||||||||||
Total loans, net | $ | 4,586,625 | 4,618,690 | 4,622,784 | 4,595,920 | 4,638,215 | ||||||||||||||||
Total assets | 6,485,593 | 6,495,047 | 6,380,176 | 6,495,662 | 6,570,220 | |||||||||||||||||
Total stockholders’ equity | 471,889 | 512,724 | 514,977 | 524,982 | 522,533 | |||||||||||||||||
Class A common shares outstanding | 51,168,201 | 53,212,871 | 54,956,368 | 56,157,425 | 56,114,600 | |||||||||||||||||
Class B common shares outstanding | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | |||||||||||||||||
Cash dividends | 2,315,458 | 2,386,145 | 2,458,490 | 2,507,673 | 2,506,136 | |||||||||||||||||
Common stock cash dividends per share | 0.0412 | 0.0410 | 0.0410 | 0.0410 | 0.0410 | |||||||||||||||||
Closing stock price | 8.67 | 8.61 | 10.96 | 13.81 | 14.22 | |||||||||||||||||
High stock price for the quarter | 9.25 | 11.25 | 13.98 | 13.94 | 14.97 | |||||||||||||||||
Low stock price for the quarter | 7.50 | 8.38 | 10.87 | 12.66 | 12.96 | |||||||||||||||||
Book value per share | 8.42 | 8.83 | 8.61 | 8.60 | 8.57 |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 9/30/2007 | 9/30/2006 | |||||||||||||||||||||
Net interest income | $ | 49,235 | 50,914 | 52,070 | 54,103 | 55,107 | 152,219 | 165,502 | ||||||||||||||||||||
Provision for loan losses | 48,949 | 4,917 | 7,461 | 8,160 | 271 | 61,327 | 414 | |||||||||||||||||||||
Net interest income after provision for loan losses | 286 | 45,997 | 44,609 | 45,943 | 54,836 | 90,892 | 165,088 | |||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 25,894 | 25,808 | 24,595 | 26,091 | 24,008 | 76,297 | 64,381 | |||||||||||||||||||||
Other service charges and fees | 7,222 | 7,524 | 7,033 | 7,188 | 6,779 | 21,779 | 20,354 | |||||||||||||||||||||
Securities activities, net | 613 | 212 | 621 | 200 | — | 1,446 | 457 | |||||||||||||||||||||
Gain on sales of loans | 88 | 138 | 200 | 211 | 175 | 426 | 469 | |||||||||||||||||||||
Gain associated with debt redemption | — | — | — | — | — | — | 1,528 | |||||||||||||||||||||
Income from unconsolidated subsidiaries | 182 | 509 | 365 | 33 | — | 1,056 | — | |||||||||||||||||||||
(Loss) gain on the sale of office properties, net | (362 | ) | (42 | ) | (153 | ) | (148 | ) | (3 | ) | (557 | ) | 1,775 | |||||||||||||||
Other non-interest income | 2,224 | 2,535 | 2,386 | 2,590 | 2,752 | 7,145 | 6,715 | |||||||||||||||||||||
Total non-interest income | 35,861 | 36,684 | 35,047 | 36,165 | 33,711 | 107,592 | 95,679 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 34,244 | 36,628 | 40,664 | 37,709 | 37,512 | 111,536 | 108,390 | |||||||||||||||||||||
Occupancy and equipment | 16,951 | 15,923 | 15,942 | 16,242 | 15,015 | 48,816 | 41,049 | |||||||||||||||||||||
Impairment of real estate held for sale | 3,655 | 1,056 | — | — | — | 4,711 | — | |||||||||||||||||||||
Impairment of real estate owned | 7,233 | 66 | — | — | — | 7,299 | — | |||||||||||||||||||||
Advertising | 4,221 | 4,079 | 5,788 | 10,331 | 8,599 | 14,088 | 24,328 | |||||||||||||||||||||
Professional fees | 2,444 | 1,233 | 1,620 | 1,576 | 1,756 | 5,297 | 6,077 | |||||||||||||||||||||
Costs associated with debt redemption | — | — | — | — | — | — | 1,457 | |||||||||||||||||||||
Check losses | 3,341 | 2,731 | 1,857 | 2,639 | 2,855 | 7,929 | 5,976 | |||||||||||||||||||||
Supplies and postage | 1,158 | 1,629 | �� | 1,850 | 1,735 | 1,716 | 4,637 | 5,098 | ||||||||||||||||||||
Telecommunication | 1,283 | 1,548 | 1,379 | 1,230 | 1,238 | 4,210 | 3,544 | |||||||||||||||||||||
One-time termination benefits | — | — | 2,553 | — | — | 2,553 | — | |||||||||||||||||||||
Other | 6,965 | 6,629 | 7,117 | 7,017 | 6,217 | 20,711 | 19,050 | |||||||||||||||||||||
Total non-interest expense | 81,495 | 71,522 | 78,770 | 78,479 | 74,908 | 231,787 | 214,969 | |||||||||||||||||||||
(Loss) income from bank operations business segment before income taxes | (45,348 | ) | 11,159 | 886 | 3,629 | 13,639 | (33,303 | ) | 45,798 | |||||||||||||||||||
(Benefit) provision for income taxes | (18,236 | ) | 754 | 247 | 11 | 3,801 | (17,235 | ) | 13,094 | |||||||||||||||||||
Net (loss) income from bank operations business segment | $ | (27,112 | ) | 10,405 | 639 | 3,618 | 9,838 | (16,068 | ) | 32,704 | ||||||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
For the Nine | ||||||||||||||||||||||||||||
(in thousands except percentages | For the Three Months Ended | Months Ended | ||||||||||||||||||||||||||
and per share data) | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 9/30/2007 | 9/30/2006 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,750,192 | 5,690,488 | 5,666,507 | 5,702,063 | 5,669,550 | 5,702,702 | 5,573,990 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,718,381 | 4,590,419 | 4,551,448 | 4,520,332 | 4,457,382 | 4,620,695 | 4,328,741 | ||||||||||||||||||||
Average tangible assets | $ | 6,194,549 | 6,127,470 | 6,092,568 | 6,086,579 | 6,041,302 | 6,138,565 | 5,938,841 | ||||||||||||||||||||
Average tangible equity | $ | 507,963 | 504,091 | 502,827 | 505,580 | 500,655 | 505,111 | 492,152 | ||||||||||||||||||||
Borrowings to deposits and borrowings | 29.89 | % | 28.74 | 26.39 | 30.36 | 33.63 | 29.89 | 33.63 | ||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||||||||
Yield on earning assets | 6.71 | % | 6.70 | 6.71 | 6.83 | 6.81 | 6.71 | 6.60 | ||||||||||||||||||||
Cost of interest-bearing liabilities | 3.80 | % | 3.70 | 3.65 | 3.62 | 3.52 | 3.72 | 3.24 | ||||||||||||||||||||
Interest spread | 2.91 | % | 3.00 | 3.06 | 3.21 | 3.29 | 2.99 | 3.36 | ||||||||||||||||||||
Net interest margin | 3.59 | % | 3.72 | 3.78 | 3.96 | 4.04 | 3.70 | 4.08 | ||||||||||||||||||||
Performance: | ||||||||||||||||||||||||||||
Efficiency ratio | 95.77 | % | 81.65 | 90.42 | 86.94 | 84.34 | 89.21 | 82.31 | ||||||||||||||||||||
Return on average tangible assets | (1.75 | )% | 0.68 | 0.04 | 0.24 | 0.65 | (0.35 | ) | 0.73 | |||||||||||||||||||
Return on average tangible equity | (21.35 | )% | 8.26 | 0.51 | 2.86 | 7.86 | (4.24 | ) | 8.86 | |||||||||||||||||||
Earning assets repricing: | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | 54 | % | 54 | 54 | 52 | 52 | ||||||||||||||||||||||
Percent of earning assets that have variable rates | 46 | % | 46 | 46 | 48 | 48 | ||||||||||||||||||||||
One year Gap | (9 | )% | (7 | ) | (3 | ) | (4 | ) | (4 | ) |
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(in thousands) | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,586,625 | 4,618,690 | 4,622,784 | 4,595,920 | 4,638,215 | ||||||||||||||
Held to maturity securities | 482,666 | 507,593 | 424,487 | 475,790 | 479,859 | |||||||||||||||
Available for sale securities | 570,624 | 563,318 | 556,404 | 559,629 | 568,699 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 5,747 | 6,097 | 6,447 | 6,834 | 7,221 | |||||||||||||||
Other assets | 557,951 | 505,874 | 495,098 | 478,460 | 418,551 | |||||||||||||||
Total assets | $ | 6,274,102 | 6,272,061 | 6,175,709 | 6,187,122 | 6,183,034 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 896,094 | 971,260 | 1,031,628 | 995,930 | 1,011,531 | ||||||||||||||
NOW | 801,289 | 769,994 | 799,300 | 779,383 | 723,211 | |||||||||||||||
Savings | 613,010 | 608,791 | 598,579 | 465,172 | 370,169 | |||||||||||||||
Money market | 656,218 | 666,820 | 653,231 | 677,642 | 695,591 | |||||||||||||||
Certificates of deposit | 1,002,197 | 1,000,278 | 1,002,284 | 948,919 | 874,956 | |||||||||||||||
Total deposits | 3,968,808 | 4,017,143 | 4,085,022 | 3,867,046 | 3,675,458 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,417,047 | 1,397,051 | 1,297,055 | 1,517,058 | 1,687,062 | |||||||||||||||
Short term borrowings | 245,895 | 193,937 | 137,914 | 138,686 | 144,722 | |||||||||||||||
Long term debt | 29,125 | 29,397 | 29,654 | 29,923 | 30,192 | |||||||||||||||
Other liabilities | 74,539 | 67,747 | 63,108 | 68,460 | 81,437 | |||||||||||||||
Total liabilities | 5,735,414 | 5,705,275 | 5,612,753 | 5,621,173 | 5,618,871 | |||||||||||||||
Stockholder’s equity | 538,688 | 566,786 | 562,956 | 565,949 | 564,163 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,274,102 | 6,272,061 | 6,175,709 | 6,187,122 | 6,183,034 | ||||||||||||||
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
September 30, 2007 | September 30, 2006 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
( in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,245,138 | 30,901 | 5.51 | % | $ | 2,130,077 | 27,891 | 5.24 | % | ||||||||||||||
Commercial real estate | 1,346,842 | 27,519 | 8.17 | 1,498,192 | 32,979 | 8.81 | ||||||||||||||||||
Consumer | 662,320 | 12,419 | 7.50 | 563,001 | 11,024 | 7.83 | ||||||||||||||||||
Commercial business | 134,390 | 3,054 | 9.09 | 152,796 | 3,408 | 8.92 | ||||||||||||||||||
Small business | 304,388 | 6,189 | 8.13 | 267,263 | 5,489 | 8.22 | ||||||||||||||||||
Total loans | 4,693,078 | 80,082 | 6.83 | 4,611,329 | 80,791 | 7.01 | ||||||||||||||||||
Investments — tax exempt | 390,906 | 5,765 | (1) | 5.90 | 397,436 | 5,806 | (1) | 5.84 | ||||||||||||||||
Investments — taxable | 666,208 | 10,580 | 6.35 | 660,785 | 9,993 | 6.05 | ||||||||||||||||||
Total interest earning assets | 5,750,192 | 96,427 | 6.71 | % | 5,669,550 | 96,590 | 6.81 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 76,419 | 77,913 | ||||||||||||||||||||||
Other non-interest earning assets | 444,357 | 371,752 | ||||||||||||||||||||||
Total Assets | $ | 6,270,968 | $ | 6,119,215 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 611,862 | 3,642 | 2.36 | % | $ | 367,829 | 721 | 0.78 | % | ||||||||||||||
NOW | 792,462 | 2,355 | 1.18 | 727,517 | 1,149 | 0.63 | ||||||||||||||||||
Money market | 660,925 | 4,881 | 2.93 | 733,058 | 4,019 | 2.18 | ||||||||||||||||||
Certificates of deposit | 996,415 | 11,679 | 4.65 | 858,688 | 9,206 | 4.25 | ||||||||||||||||||
Total interest bearing deposits | 3,061,664 | 22,557 | 2.92 | 2,687,092 | 15,095 | 2.23 | ||||||||||||||||||
Short-term borrowed funds | 229,366 | 2,998 | 5.19 | 378,063 | 5,117 | 5.37 | ||||||||||||||||||
Advances from FHLB | 1,398,245 | 18,987 | 5.39 | 1,354,944 | 18,509 | 5.42 | ||||||||||||||||||
Long-term debt | 29,106 | 632 | 8.61 | 37,283 | 805 | 8.57 | ||||||||||||||||||
Total interest bearing liabilities | 4,718,381 | 45,174 | 3.80 | 4,457,382 | 39,526 | 3.52 | ||||||||||||||||||
Demand deposits | 922,452 | 1,043,574 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 54,210 | 53,567 | ||||||||||||||||||||||
Total Liabilities | 5,695,043 | 5,554,523 | ||||||||||||||||||||||
Stockholder’s equity | 575,925 | 564,692 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,270,968 | $ | 6,119,215 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | 51,253 | 2.91 | % | 57,064 | 3.29 | % | ||||||||||||||||||
Tax equivalent adjustment | (2,018 | ) | (2,032 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | — | 75 | ||||||||||||||||||||||
Net interest income | 49,235 | 55,107 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.71 | % | 6.81 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 3.12 | 2.77 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.59 | % | 4.04 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Nine Months Ended | ||||||||||||||||||||||||
September 30, 2007 | September 30, 2006 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,214,307 | 90,593 | 5.46 | % | $ | 2,073,923 | 79,890 | 5.14 | % | ||||||||||||||
Commercial real estate | 1,383,783 | 85,658 | 8.25 | 1,511,983 | 94,775 | 8.36 | ||||||||||||||||||
Loan participations sold | — | — | 0.00 | 41,306 | 2,401 | 7.75 | ||||||||||||||||||
Consumer | 634,925 | 35,619 | 7.48 | 549,939 | 30,676 | 7.44 | ||||||||||||||||||
Commercial business | 145,759 | 9,846 | 9.01 | 135,272 | 8,937 | 8.81 | ||||||||||||||||||
Small business | 295,211 | 17,867 | 8.07 | 254,325 | 15,262 | 8.00 | ||||||||||||||||||
Total loans | 4,673,985 | 239,583 | 6.83 | 4,566,748 | 231,941 | 6.77 | ||||||||||||||||||
Investments — tax exempt | 395,218 | 17,412 | (1) | 5.87 | 396,348 | 17,355 | 5.84 | |||||||||||||||||
Investments — taxable | 633,499 | 29,782 | 6.27 | 610,894 | 26,422 | 5.77 | ||||||||||||||||||
Total interest earning assets | 5,702,702 | 286,777 | 6.71 | % | 5,573,990 | 275,718 | 6.60 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 76,778 | 78,300 | ||||||||||||||||||||||
Other non-interest earning assets | 435,863 | 364,851 | ||||||||||||||||||||||
Total Assets | $ | 6,215,343 | $ | 6,017,141 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 582,714 | 9,613 | 2.21 | % | $ | 354,765 | 1,557 | 0.59 | % | ||||||||||||||
NOW | 781,911 | 5,616 | 0.96 | 750,771 | 3,106 | 0.55 | ||||||||||||||||||
Money market | 662,990 | 13,608 | 2.74 | 775,833 | 11,977 | 2.06 | ||||||||||||||||||
Certificates of deposit | 983,990 | 34,195 | 4.65 | 849,011 | 25,061 | 3.95 | ||||||||||||||||||
Total deposits | 3,011,605 | 63,032 | 2.80 | 2,730,380 | 41,701 | 2.04 | ||||||||||||||||||
Short-term borrowed funds | 196,953 | 7,722 | 5.24 | 342,413 | 12,760 | 4.98 | ||||||||||||||||||
Advances from FHLB | 1,382,768 | 55,813 | 5.40 | 1,177,389 | 45,655 | 5.18 | ||||||||||||||||||
Secured borrowings | — | — | 0.00 | 41,306 | 2,401 | 7.75 | ||||||||||||||||||
Long-term debt | 29,369 | 1,897 | 8.64 | 37,253 | 2,469 | 8.86 | ||||||||||||||||||
Total interest bearing liabilities | 4,620,695 | 128,464 | 3.72 | 4,328,741 | 104,986 | 3.24 | ||||||||||||||||||
Demand deposits | 966,898 | 1,072,867 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 53,738 | 58,383 | ||||||||||||||||||||||
Total Liabilities | 5,641,331 | 5,459,991 | ||||||||||||||||||||||
Stockholder’s equity | 574,012 | 557,150 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,215,343 | $ | 6,017,141 | ||||||||||||||||||||
Net interest income/net interest spread | 158,313 | 2.99 | % | 170,732 | 3.36 | % | ||||||||||||||||||
Tax equivalent adjustment | (6,094 | ) | (6,074 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | — | 844 | ||||||||||||||||||||||
Net interest income | 152,219 | 165,502 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.71 | % | 6.60 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 3.01 | 2.52 | ||||||||||||||||||||||
Net interest margin | 3.70 | % | 4.08 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 3.70 | % | 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
For the Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 9/30/2007 | 9/30/2006 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 54,754 | 50,373 | 43,602 | 42,517 | 42,012 | 43,602 | 41,192 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (3 | ) | (52 | ) | (151 | ) | — | (111 | ) | (206 | ) | (239 | ) | |||||||||||||||
Commercial real estate | (9,444 | ) | — | — | (7,000 | ) | — | (9,444 | ) | — | ||||||||||||||||||
Commercial business | — | — | — | — | — | — | (34 | ) | ||||||||||||||||||||
Consumer | (1,689 | ) | (744 | ) | (538 | ) | (209 | ) | (232 | ) | (2,971 | ) | (472 | ) | ||||||||||||||
Small business | (581 | ) | (1,001 | ) | (438 | ) | (544 | ) | (93 | ) | (2,020 | ) | (407 | ) | ||||||||||||||
Total charge-offs | (11,717 | ) | (1,797 | ) | (1,127 | ) | (7,753 | ) | (436 | ) | (14,641 | ) | (1,152 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | — | 15 | — | — | 170 | 15 | 348 | |||||||||||||||||||||
Commercial real estate | — | 304 | — | — | 10 | 304 | 19 | |||||||||||||||||||||
Commercial business | 29 | 777 | 42 | 379 | 54 | 848 | 281 | |||||||||||||||||||||
Consumer | 120 | 81 | 167 | 76 | 163 | 368 | 460 | |||||||||||||||||||||
Small business | 223 | 84 | 228 | 114 | 193 | 535 | 452 | |||||||||||||||||||||
Other | — | — | — | 109 | 80 | — | 503 | |||||||||||||||||||||
Total recoveries | 372 | 1,261 | 437 | 678 | 670 | 2,070 | 2,063 | |||||||||||||||||||||
Net (charge-offs) recoveries | (11,345 | ) | (536 | ) | (690 | ) | (7,075 | ) | 234 | (12,571 | ) | 911 | ||||||||||||||||
Provision for loan losses | 48,949 | 4,917 | 7,461 | 8,160 | 271 | 61,327 | 414 | |||||||||||||||||||||
Ending balance | 92,358 | 54,754 | 50,373 | 43,602 | 42,517 | 92,358 | 42,517 | |||||||||||||||||||||
Less specific reserves | 27,884 | 5,849 | 5,856 | 162 | 172 | 27,884 | 172 | |||||||||||||||||||||
General allowance for loan losses | $ | 64,474 | 48,905 | 44,517 | 43,440 | 42,345 | 64,474 | 42,345 | ||||||||||||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.97 | % | 0.05 | 0.06 | 0.61 | (0.02 | ) | 0.36 | (0.03 | ) | ||||||||||||||||||
As of | ||||||||||||||||||||
9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 60,536 | 9,161 | 13,101 | 4,436 | 32,895 | ||||||||||||||
Nonaccrual loans with specific reserves | 104,833 | 12,645 | 12,645 | — | — | |||||||||||||||
Nonaccrual tax certificates | 1,140 | 711 | 597 | 631 | 760 | |||||||||||||||
Real estate owned | 17,159 | 23,886 | 23,135 | 21,747 | 1,439 | |||||||||||||||
Other repossessed assets | — | — | — | — | — | |||||||||||||||
Total nonperforming assets, gross | 183,668 | 46,403 | 49,478 | 26,814 | 35,094 | |||||||||||||||
Nonperforming assets, gross to total loans and other assets | 3.74 | % | 0.94 | 1.02 | 0.55 | 0.72 | ||||||||||||||
Allowance for loan losses to total loans | 1.97 | % | 1.17 | 1.08 | 0.94 | 0.91 | ||||||||||||||
Provision to average loans | 4.17 | % | 0.42 | 0.64 | 0.70 | 0.02 | ||||||||||||||
Allowance to nonaccrual loans | 55.85 | % | 251.10 | 195.65 | 982.91 | 129.25 |
(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 Nine | ||||||||||||||||||||||||||||
For the Three Months Ended | Months Ended | |||||||||||||||||||||||||||
(in thousands) | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | 9/30/2007 | 9/30/2006 | |||||||||||||||||||||
Net interest (expense) | $ | (5,476 | ) | (4,861 | ) | (4,924 | ) | (4,952 | ) | (5,117 | ) | (15,261 | ) | (14,533 | ) | |||||||||||||
Non-Interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 167 | 159 | 781 | 270 | 266 | 1,107 | 1,364 | |||||||||||||||||||||
Securities activities, net | 594 | 8,601 | 934 | 2,000 | 2,243 | 10,129 | 7,156 | |||||||||||||||||||||
Other | 13 | 48 | — | — | — | 61 | — | |||||||||||||||||||||
Non-interest income | 774 | 8,808 | 1,715 | 2,270 | 2,509 | 11,297 | 8,520 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 14 | 1,280 | 426 | 1,050 | 1,107 | 1,720 | 3,655 | |||||||||||||||||||||
Advertising and promotion | 55 | 130 | 70 | 70 | 49 | 255 | 338 | |||||||||||||||||||||
Professional fees | 98 | 135 | 93 | 56 | 212 | 326 | 582 | |||||||||||||||||||||
Other | 30 | 118 | 144 | 194 | 243 | 292 | 811 | |||||||||||||||||||||
Non-interest expense | 197 | 1,663 | 733 | 1,370 | 1,611 | 2,593 | 5,386 | |||||||||||||||||||||
(Loss) income from parent company activities before income taxes | (4,899 | ) | 2,284 | (3,942 | ) | (4,052 | ) | (4,219 | ) | (6,557 | ) | (11,399 | ) | |||||||||||||||
(Benefit) provision for income taxes | (2,401 | ) | 961 | (1,099 | ) | (1,484 | ) | (1,748 | ) | (2,539 | ) | (4,524 | ) | |||||||||||||||
Net (loss) income from parent company business segment | $ | (2,498 | ) | 1,323 | (2,843 | ) | (2,568 | ) | (2,471 | ) | (4,018 | ) | (6,875 | ) | ||||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 9/30/2006 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 12,540 | 28,332 | 14,699 | 4,852 | 2,246 | ||||||||||||||
Securities | 201,155 | 193,979 | 194,257 | 103,218 | 101,621 | |||||||||||||||
Investment in subsidiaries | 538,691 | 566,787 | 562,958 | 661,467 | 662,224 | |||||||||||||||
Investment in unconsolidated subsidiaries | 8,839 | 8,685 | 7,910 | 11,996 | 11,996 | |||||||||||||||
Other assets | 8,466 | 8,370 | 2,929 | 12,165 | 12,256 | |||||||||||||||
Total assets | $ | 769,691 | 806,153 | 782,753 | 793,698 | 790,343 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 294,195 | 289,040 | 263,266 | 263,266 | 263,266 | ||||||||||||||
Other liabilities | 3,607 | 4,389 | 4,510 | 5,450 | 4,544 | |||||||||||||||
Total liabilities | 297,802 | 293,429 | 267,776 | 268,716 | 267,810 | |||||||||||||||
Stockholders’ equity | 471,889 | 512,724 | 514,977 | 524,982 | 522,533 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 769,691 | 806,153 | 782,753 | 793,698 | 790,343 | ||||||||||||||