Exhibit 99.1
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BankAtlantic Bancorp Reports Financial Results
For the Fourth Quarter and Full Year, 2007
For the Fourth Quarter and Full Year, 2007
FORT LAUDERDALE, Florida — January 29, 2008 —BankAtlantic Bancorp, Inc. (NYSE: BBX) today reported a loss from continuing operations of ($9.9) million, or ($0.18) per diluted share, for the fourth quarter 2007, compared to income from continuing operations of $1.0 million, or $0.02 per diluted share, for the fourth quarter 2006. For the year ended at December 31, 2007, BankAtlantic Bancorp recorded a net loss of ($22.2) million, or ($0.38) per diluted share, compared to net income of $15.4 million, or $0.25 per diluted share, for the year ended December 31, 2006. BankAtlantic Bancorp recorded a net loss from continuing operations of ($30.0) million, or ($0.52) per diluted share, for the year ended December 31, 2007, compared to net income from continuing operations of $26.9 million, or $0.43 per diluted share, reported for the year ended December 31, 2006.
Pre-tax items contributing to the fourth quarter 2007 loss included, at the BankAtlantic level, $9.5 million in provision for loan losses, $5.7 million in restructuring charges and $3.2 million in negative impact associated with BankAtlantic’s store expansion program; and at the Parent Company level, a $3.3 million investment impairment and a $2.7 million reduction in Stifel Financial warrant valuation. These items are further discussed in this release.
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “The current economic environment is clearly challenging. While we are obviously unhappy that we have recognized substantial impairments in our Commercial Real Estate loan portfolio, we believe that we have successfully avoided many of the pitfalls in this market. BankAtlantic exited the high rise condo market a number of years in advance of its declines, avoided subprime and negative amortizing mortgage products, and sought to minimize credit risk in its investment portfolios by avoiding CLO, CDO, ABCP and SIV exposure. Rather than expanding leverage and generating funding through higher cost methods, BankAtlantic focused on increasing core deposits through our seven-day convenience model, which appears to be positive in the current rate environment. We also commenced expense reduction initiatives and have aggressively identified issues in our commercial loan portfolios. We believe BankAtlantic
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will emerge as a stronger organization as the marketplace returns to a more normalized environment.
BankAtlantic Highlights
Net Income —“For the fourth quarter of 2007, BankAtlantic’s net loss was ($3.4) million, down from net income of $3.6 million in the comparable 2006 quarter. As discussed in detail later in this release, the decline was the result of net interest margin compression associated with the higher cost of deposits and higher levels of non-performing loans, increased provisions for loan losses, and expenses associated with restructuring and exit activities, partially offset by lower advertising costs. The full year 2007 net loss was ($19.4) million compared to net income of $36.3 million in 2006.
Credit Quality— “Non-performing loans increased from $165.4 million at September 30, 2007 to $178.6 million at December 31, 2007. As a result, the ratio of non-performing loans to total loans increased from 3.53% at September 30, 2007 to 3.87% at December 31, 2007, and the ratio of non-performing assets to total loans plus other assets increased from 3.74% at September 30, 2007 to 4.10% at December 31, 2007. For the quarter ended December 31, 2007, the bank experienced net charge-offs of $7.9 million, including consumer net charge-offs of $4.0 million, representing primarily home equity lines of credit, where the value of the underlying collateral has declined.
“The provision for loan loss in the fourth quarter of 2007 was $9.5 million or 0.82% of average loans versus $8.2 million or 0.70% of average loans for the fourth quarter of 2006 and $48.9 million or 4.17% of average loans for the third quarter of 2007. The allowance for loan losses increased to $94.0 million (2.04% of total loans) at December 31, 2007 compared to $43.6 million (0.94% of total loans) at December 31, 2006. Characteristics of our Commercial Real Estate, Residential and Consumer loan portfolios are detailed below.
Commercial Real Estate Loans—“The Bank’s Commercial Real Estate loan portfolio at December 31, 2007 totaled $1.3 billion, including the following categories, where we believe we have the most exposure to declines in the real estate market:
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• | Builder land bank loans: This category of 12 loans aggregates $149.6 million, of which 6 loans totaling $86.5 million are non-accrual. At September 30, 2007, this category included 13 loans aggregating $149.3 million, of which five loans totaling $81.1 million were non-accrual. |
• | Land acquisition and development loans: This category of 34 loans aggregates $194.9 million, of which two loans totaling $7.3 million are non-accrual. At September 30, 2007, this category included 37 loans aggregating $218.5 million, of which three loans totaling $13.2 million were non-accrual. |
• | Land acquisition, development and construction loans: This category of 29 loans aggregates $151.6 million, of which 7 loans totaling $57.2 million are non-accrual. At September 30, 2007, this category included 33 loans aggregating $187.7 million, of which seven loans totaling $62.0 million were non-accrual. |
We believe we are making progress and will continue to aggressively monitor this real estate loan portfolio. Of the non-accrual Commercial Real Estate loans at December 31, 2007, approximately $101.2 million are in various stages of negotiation and the balance of $58.1 million is in active litigation. In summary, there were 19 Commercial Real Estate loans totaling $159.3 million on non-accrual at December 31, 2007, compared to 15 loans totaling $156.3 million at September 30, 2007. While we are pleased the numbers have stabilized, we do not anticipate that the real estate housing market in Florida will improve in the near-term. We are continuing to closely work with our borrowers; but additional provisions relating to this portfolio may be required.
Purchased Residential Loans— “Our Purchased Residential loan portfolio was $2.1 billion at quarter-end, representing approximately 47.0% of the Bank’s total loans. As we have previously indicated, this portfolio does not include subprime or negative amortizing loans, is geographically diverse, the weighted average FICO score in this portfolio was 741 at the time of origination, the weighted average original loan-to-value of the portfolio was 67.0%, and the original back end debt ratio was a weighted average of 32.8%. As of December 31, 2007, the average time to payment reset was 66.6 months. Quarter-end delinquencies, including non-accrual loans, were 0.77% of the unpaid principal balance, versus 0.32% in the fourth quarter of 2006 and 0.50% in the third quarter of 2007. Non-accrual balances increased to $6.9 million at December 31, 2007 from $4.1 million at September 30, 2007, and $1.6 million at December 31,
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2006. The average loan-to-value of non-accrual balances at December 31, 2007, based on updated property values, was 60.0%, and our loss history on this portfolio over the past twelve months was very low at 0.02% of the average outstanding balances or $404,000. While this portfolio has experienced an increase in delinquencies and non-accruals which we anticipate may continue as the housing market remains weak, based on the inherent characteristics of these loans, we continue to expect this portfolio to perform satisfactorily.
Consumer Loans- “Our Consumer loan portfolio was $692.0 million at quarter-end, with Home Equity loans constituting approximately 98.0% of this portfolio. Delinquency trends in this portfolio have increased, and charge-offs have increased due to declining property values. At origination, these loans had a weighted average loan-to-value, inclusive of first mortgages, of 67.0%, and a weighted average Beacon score of 706. Additionally, 70.0% of the portfolio balances have Beacon scores of 700 or greater. Total delinquencies at December 31, 2007 were 1.48% versus 0.61% at December 31, 2006 and 1.34% at September 30, 2007. Non-accrual balances were stable during the quarter at $3.2 million at both December 31, 2007 and September 30, 2007, compared to $1.6 million at December 31, 2006.”
Store Expansion Program— BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “During the fourth quarter of 2007, we opened two new stores, bringing the total to 15 stores opened in 2007. We have opened a total of 32 new stores since January 1, 2005, which as of December 31, 2007 had balances of $224.6 million in core deposits and $358.3 million in total deposits. (Core deposits include DDA, NOW and savings accounts.) For 2007, the new stores have generated net growth of $132.4 million in core deposits, $195.0 million of total deposits, and over 84,000 of new core deposit accounts.Because of the time required for newly opened stores to breakeven, the expenses associated with BankAtlantic’s store expansion program negatively impacted BankAtlantic’s fourth quarter pre-tax income by approximately $3.2 million and had a $14.2 million impact on the full year pre-tax income. As of quarter-end, we had a total of 103 stores throughout Florida.
“While we remain committed to store expansion in the long-term, we have decided to reduce our new store openings in 2008 to the four originally planned for the first quarter of 2008. We will reevaluate our expansion plans as the economic environment improves. Related to our decision to slow store expansion, we are considering exiting the Orlando market or selling the
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four stores currently open as well as three sites acquired for future development in the Orlando market, as we will not have a sufficient presence in the short-term to justify being in this market.
Deposit Accounts and Balances— “At quarter-end, ‘total bank’ and ‘same store’ core deposit balances increased 2.9% and 2.4%, respectively, over the fourth quarter of 2006, representing a total bank net increase of $64.5 million in core deposits and $86.4 million in total deposits. In the fourth quarter of 2007, in spite of economic pressures in our markets combined with a significant reduction in advertising and marketing expense, new account openings remained strong, with BankAtlantic opening over 57,000 new core deposit accounts.
Net Interest Margin and Earning Assets— “Net interest income for the fourth quarter of 2007 was $47.3 million compared to $54.1 million in the corresponding 2006 quarter, reflecting a 55 basis point decline in the tax equivalent net interest margin. The tax equivalent net interest margin was 3.41% in the fourth quarter of 2007, down from 3.96% in the corresponding quarter of 2006, reflecting the increase of $171.1 million in non-performing assets between periods, a 21 basis point or $3.1 million incremental negative impact to the net interest margin in the fourth quarter of 2007, as well as an increase of 30 basis points in the cost of interest bearing deposits since the fourth quarter 2006 due to ongoing competitive pressures affecting our deposit pricing. Average loans were essentially flat from the fourth quarter of 2006, decreasing $1.1 million. Average core deposits increased $150.9 million or 7.0% and average total deposits increased $183.4 million or 4.9%, respectively, over the fourth quarter of 2006.
Non-interest income —“Non-interest income for the fourth quarter 2007 was $36.3 million compared to $36.2 million in the fourth quarter 2006. For the full year, non-interest income was $143.9 million, a 9.1% increase over 2006 non-interest income of $131.8 million. Non-interest income in the 2006 year included a $1.5 million gain associated with debt redemption. Non-interest income increased as a result of the growth of accounts of 10.0% over 2006 and the fees related to these accounts; net fees per account were lower in the fourth quarter of 2007 compared to fourth quarter 2006, resulting in the unchanged non-interest income level for the quarter.
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Non-interest expense —“Non-interest expense for the fourth quarter 2007 was $81.6 million, or $3.1 million greater than the fourth quarter of 2006. The fourth quarter 2007 expenses included $5.7 million in restructuring costs (related primarily to certain land and leases that are now held for sale or determined to no longer be of use due to the decision to defer store expansion and other operational consolidation efforts) and $2.5 million in increased expense from the fourth quarter of 2006 to fourth quarter of 2007 related to our store expansion program. Non-interest expense for 2007 was $313.4 million versus $293.4 million for 2006. Expenses in 2007 reflected $12.0 million in impairment charges associated with real estate owned and real estate held for sale, $8.4 million of restructuring costs and exit activities, $17.9 million in increased expenses over 2006 related to our store expansion program, and a decrease of $15.0 million in advertising and marketing expenses from 2006; 2006 expenses included $1.5 million of costs associated with debt redemption. Excluding the impairment and restructuring expenses in 2007, our expenses were nearly flat from 2006. We are pleased that we have been successful in effectively offsetting the incremental cost of our store expansion with efficiencies in our marketing and operations during 2007.
“In summary, we continue to work with our residential land borrowers and to closely monitor the performance of our other loan portfolios. We believe that we made progress in our efforts to reduce non-interest expenses, and we will continue to evaluate available opportunities to further reduce expenses and improve profitability,” concluded Jarett S. Levan.
BankAtlantic Bancorp:
BankAtlantic Bancorp’s Chairman and CEO, Alan B. Levan, further commented, “During the quarter, the Parent Company only financials reflected a $3.3 million impairment of a $5.0 million investment in a private investment partnership due to a substantial deterioration in market value. This is the only Parent Company investment reflecting an impairment at December 31, 2007; of the $194.9 million in book value of cash and securities held at the Parent Company, $114.7 million is represented by Stifel Financial Corporation stock and warrants, and the remaining $80.2 million is invested in cash and other investments with no unrealized investment losses at period-end.
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Stifel Investments—“In January 2008, we sold 250,000 shares of Stifel Financial Corp. common stock to Stifel at book value for proceeds of approximately $10.6 million. We continue to hold 2,127,354 shares of Stifel common stock and warrants to purchase 481,724 shares of Stifel common stock at an exercise price of $36 per share. At quarter-end, the aggregate fair-value of these holdings was approximately $117.8 million. We recorded a $2.7 million pre-tax loss for the quarter associated with the change in value of the warrants in the fourth quarter of 2007; for the full year 2007, we recorded a net gain of $0.3 million on the change in the warrant valuation since inception. 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.
Litigation— “During the quarter, several lawsuits were filed against the Company and its directors and certain members of management relating to BankAtlantic’s loan portfolio and provisions for loan losses including allegations, based on an erroneous publication, that the Bank made a loan to a since-defaulted borrower without obtaining an appraisal for the property. While we normally do not comment on pending litigation, we believe that it is important to correct any suggestion that an appraisal was not obtained. In fact, we did obtain an appraisal as well as an independent review of that appraisal, prior to making the subject loan.
Cash Dividend— “BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.005 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on January 3rd, 2008. The fourth quarter’s dividend declaration marked BankAtlantic Bancorp’s 58th consecutive quarterly dividend payment.
“Since 1984 we have experienced three significant downturns. In each case, we followed a similar formula to reduce expenses, focus on credit, and position our revenue channels for future growth. While each downturn is different, we believe this formula will serve us well during the current times,” concluded Alan B. Levan.
Financial Highlights:
Fourth Quarter, 2007 Compared to Fourth Quarter, 2006
BankAtlantic Bancorp — consolidated:
• | (Loss) from continuing operations of ($9.9) million versus income of $1.0 million | ||
• | Diluted (loss) earnings per share from continuing operations of ($0.18) versus $0.02 |
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• | Return on average tangible equity from continuing operations was (10.0%) versus 0.92% | ||
• | Book value per share was $8.19 versus $8.60 |
BankAtlantic:
• | Business segment (loss) income was ($3.4) million versus $3.6 million | ||
• | Over 57,000 new core deposit accounts opened versus over 73,000 | ||
• | Return on average tangible assets was (0.22%) versus 0.24% | ||
• | Return on average tangible equity was (2.80%) versus 2.86% | ||
• | Tax equivalent net interest margin decreased to 3.41% versus 3.96% | ||
• | Non-interest income was $36.3 million versus $36.2 million in 2006, an increase of 0.4% | ||
• | Non-interest expense was $81.6 million versus $78.5 million, an increase of 4.0%; before the $5.7 million of restructuring and exit activities in 2007, non-interest expense was $75.9 million versus $78.5 million in 2006, a decrease of 3.3% |
Year-to-date 2007 Compared to Year-to-date 2006
BankAtlantic Bancorp — consolidated:
• | (Loss) from continuing operations was ($30.0) million versus income of $26.9 million | ||
• | Diluted (loss) earnings per share from continuing operations was ($0.52) versus $0.43 | ||
• | Return on average tangible equity from continuing operations was (6.95%) versus 6.00% |
BankAtlantic:
• | Business segment (loss) income was ($19.4) million versus $36.3 million | ||
• | Over 257,000 new core deposit accounts opened versus over 269,000 | ||
• | Return on average tangible assets was (0.32%) versus 0.61% | ||
• | Return on average tangible equity was (3.89%) versus 7.35% | ||
• | Non-interest income was $143.9 million versus $131.8 million in 2006, an increase of 9.1%; before $1.5 million of gains associated with debt redemption in 2006, non-interest income was $143.9 million versus $130.3 million in 2006, an increase of 10.0% | ||
• | Non-interest expense was $313.4 million versus $293.4 million in 2006, an increase of 6.8%; before the $12.0 million impairment charge associated with real estate owned and real estate held for sale and the $8.4 million of restructuring and exit activities in 2007 and the $1.5 million costs associated with debt redemption in 2006, non-interest expense |
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grew to $293.0 million versus $292.0 million, an increase of 0.3% while absorbing approximately $17.9 million in increased expenses in 2007 over 2006 related to our store expansion program | |||
BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Wednesday, January 30, 2008, at 11:00 a.m. (Eastern Time).
Teleconference Call Information:
To access the teleconference call in the U.S. and Canada, the toll free number to call is 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number29942381.
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, February 13, 2008. 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 is29942381.
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=44769. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Wednesday, February 13, 2008.
BankAtlantic Bancorp’s fourth quarter and full year, 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 fourth quarter and full year, 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.
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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 an approximate 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 located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, Totally Free Online Banking & Bill Pay, 7-Day Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift. For further information visit www.BankAtlantic.com
For further information, please visit our websites:
www.BankAtlanticBancorp.com
www.BankAtlantic.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
Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
Assistant Vice President, Investor Relations & Corporate Communications
Email: CorpComm@BankAtlanticBancorp.com
Leo Hinkley,
Senior Vice President, Investor Relations Officer
Email: InvestorRelations@BankAtlanticBancorp.com
Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Public Relations:
Hattie Hess, Vice President, Public Relations
Telephone: 954-940-6383, Fax: 954-940-6310
Email: hhess@BankAtlantic.com
Telephone: 954-940-6383, Fax: 954-940-6310
Email: hhess@BankAtlantic.com
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Public Relations for BankAtlantic:
Boardroom Communications
Caren Berg
Phone: 954-370-8999, Fax: 954-370-8892
Email: caren@boardroompr.com
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 performance of our loan portfolio, 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, development loans (including “Builder land bank loans”), Home Equity 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 stores and achieving growth and profitability at stores in the time frames anticipated, if at all;and the impact of periodic testing of goodwill, deferred tax assets, 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 Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||||||
12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 12/31/2007 | 12/31/2006 | ||||||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations | $ | (9,926 | ) | (29,610 | ) | 11,728 | (2,204 | ) | 1,048 | (30,012 | ) | 26,879 | ||||||||||||||||||||||
Net (loss) income | $ | (9,926 | ) | (29,610 | ) | 11,620 | 5,716 | (1,670 | ) | (22,200 | ) | 15,387 | ||||||||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||||
Basic | 56,054 | 56,832 | 59,190 | 60,635 | 61,007 | 58,162 | 61,095 | |||||||||||||||||||||||||||
Diluted | 56,054 | 56,832 | 59,929 | 60,635 | 62,278 | 58,162 | 62,563 | |||||||||||||||||||||||||||
Key Performance Ratios | ||||||||||||||||||||||||||||||||||
Basic (loss) earnings per share from continuing operations | $ | (0.18 | ) | (0.52 | ) | 0.20 | (0.04 | ) | 0.02 | (0.52 | ) | 0.44 | ||||||||||||||||||||||
Diluted (loss) earnings per share from continuing operations | $ | (0.18 | ) | (0.52 | ) | 0.20 | (0.04 | ) | 0.02 | (0.52 | ) | 0.43 | ||||||||||||||||||||||
Basic (loss) earnings per share | $ | (0.18 | ) | (0.52 | ) | 0.20 | 0.09 | (0.03 | ) | (0.38 | ) | 0.25 | ||||||||||||||||||||||
Diluted (loss) earnings per share | $ | (0.18 | ) | (0.52 | ) | 0.19 | 0.09 | (0.03 | ) | (0.38 | ) | 0.25 | ||||||||||||||||||||||
Return on average tangible assets from continuing operations | (note 1) | % | (0.63 | ) | (1.85 | ) | 0.74 | (0.14 | ) | 0.07 | (0.47 | ) | 0.42 | |||||||||||||||||||||
Return on average tangible equity from continuing operations | (note 1) | % | (9.96 | ) | (27.45 | ) | 10.47 | (1.96 | ) | 0.92 | (6.95 | ) | 6.00 | |||||||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||||||
Assets | $ | 6,354 | 6,479 | 6,407 | 6,439 | 6,520 | 6,420 | 6,413 | ||||||||||||||||||||||||||
Tangible assets | (note 1) | $ | 6,278 | 6,402 | 6,330 | 6,358 | 6,436 | 6,342 | 6,328 | |||||||||||||||||||||||||
Loans | $ | 4,654 | 4,693 | 4,678 | 4,651 | 4,655 | 4,669 | 4,589 | ||||||||||||||||||||||||||
Investments | $ | 1,172 | 1,244 | 1,194 | 1,142 | 1,141 | 1,207 | 1,115 | ||||||||||||||||||||||||||
Deposits and escrows | $ | 3,960 | 3,984 | 4,048 | 3,902 | 3,776 | 3,974 | 3,796 | ||||||||||||||||||||||||||
Stockholders’ equity | $ | 471 | 506 | 525 | 529 | 533 | 508 | 525 | ||||||||||||||||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 399 | 431 | 448 | 450 | 454 | 432 | 448 |
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)
December 31, | December 31, | |||||||
(in thousands, except share data) | 2007 | 2006 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 124,574 | 138,904 | |||||
Securities available for sale (at fair value) | 925,363 | 651,316 | ||||||
Investment securities (approximate fair value: $44,110 and $209,020) | 39,617 | 206,682 | ||||||
Financial instruments accounted for at fair value | 10,661 | — | ||||||
Tax certificates net of allowance of $3,289 and $3,699 | 188,401 | 195,391 | ||||||
Loans receivable, net of allowance for loan losses of $94,020 and $43,602 | 4,524,188 | 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 | 33,741 | 25,333 | ||||||
Real estate owned | 17,216 | 21,747 | ||||||
Office properties and equipment, net | 243,863 | 219,717 | ||||||
Goodwill and other intangible assets | 75,886 | 77,324 | ||||||
Other assets | 121,304 | 92,348 | ||||||
Total assets | $ | 6,378,817 | 6,495,662 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | ||||||||
Demand | $ | 824,211 | 995,920 | |||||
NOW | 900,233 | 779,383 | ||||||
Savings | 580,497 | 465,172 | ||||||
Money market | 624,390 | 677,642 | ||||||
Certificates of deposit | 1,024,074 | 948,919 | ||||||
Total deposits | 3,953,405 | 3,867,036 | ||||||
Advances from FHLB | 1,397,044 | 1,517,058 | ||||||
Securities sold under agreements to repurchase | 58,265 | 101,932 | ||||||
Federal funds purchased and other short term borrowings | 108,975 | 32,026 | ||||||
Subordinated debentures and bonds payable | 26,654 | 29,923 | ||||||
Junior subordinated debentures | 294,195 | 263,266 | ||||||
Discontinued operations liabilities held for sale | — | 95,246 | ||||||
Other liabilities | 80,958 | 64,193 | ||||||
Total liabilities | 5,919,496 | 5,970,680 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 561 | 611 | ||||||
Additional paid-in capital | 216,692 | 260,460 | ||||||
Retained earnings | 236,150 | 265,089 | ||||||
Total stockholders’ equity before accumulated other comprehensive income (loss) | 453,403 | 526,160 | ||||||
Accumulated other comprehensive income (loss) | 5,918 | (1,178 | ) | |||||
Total stockholders’ equity | 459,321 | 524,982 | ||||||
Total liabilities and stockholders’ equity | $ | 6,378,817 | 6,495,662 | |||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||
Interest and fees on loans | $ | 74,415 | 80,082 | 79,914 | 79,587 | 81,019 | 313,998 | 312,960 | ||||||||||||||||||||
Interest on securities available for sale | 8,075 | 4,835 | 4,628 | 4,561 | 4,472 | 22,099 | 17,574 | |||||||||||||||||||||
Interest on tax exempt securities | 1,266 | 3,838 | 3,800 | 3,796 | 3,817 | 12,700 | 15,289 | |||||||||||||||||||||
Interest and dividends on taxable investments and tax certificates | 5,666 | 6,141 | 5,433 | 5,596 | 6,543 | 22,836 | 21,354 | |||||||||||||||||||||
Total interest income | 89,422 | 94,896 | 93,775 | 93,540 | 95,851 | 371,633 | 367,177 | |||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Interest on deposits | 21,443 | 22,558 | 21,473 | 19,002 | 17,258 | 84,476 | 58,959 | |||||||||||||||||||||
Interest on advances from FHLB | 17,443 | 18,987 | 18,103 | 18,723 | 20,837 | 73,256 | 66,492 | |||||||||||||||||||||
Interest on short-term borrowed funds | 2,068 | 2,940 | 2,010 | 2,555 | 2,505 | 9,573 | 15,089 | |||||||||||||||||||||
Interest on secured borrowings | — | — | — | — | — | — | 2,401 | |||||||||||||||||||||
Interest on long-term debt | 6,650 | 6,652 | 6,136 | 6,114 | 6,184 | 25,552 | 25,045 | |||||||||||||||||||||
Capitalized interest on real estate development | — | — | — | — | (85 | ) | — | (929 | ) | |||||||||||||||||||
Total interest expense | 47,604 | 51,137 | 47,722 | 46,394 | 46,699 | 192,857 | 167,057 | |||||||||||||||||||||
NET INTEREST INCOME | 41,818 | 43,759 | 46,053 | 47,146 | 49,152 | 178,776 | 200,120 | |||||||||||||||||||||
Provision for loan losses | 9,515 | 48,949 | 4,917 | 7,461 | 8,160 | 70,842 | 8,574 | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 32,303 | (5,190 | ) | 41,136 | 39,685 | 40,992 | 107,934 | 191,546 | ||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||
Service charges on deposits | 26,342 | 25,894 | 25,808 | 24,595 | 26,091 | 102,639 | 90,472 | |||||||||||||||||||||
Other service charges and fees | 7,171 | 7,222 | 7,524 | 7,033 | 7,188 | 28,950 | 27,542 | |||||||||||||||||||||
Securities activities, net | (3,163 | ) | 1,207 | 8,813 | 1,555 | 2,199 | 8,412 | 9,813 | ||||||||||||||||||||
Gain on sales of loans | 68 | 88 | 138 | 200 | 211 | 494 | 680 | |||||||||||||||||||||
Gain associated with debt redemption | — | — | — | — | — | — | 1,528 | |||||||||||||||||||||
Income from unconsolidated subsidiaries | 337 | 348 | 669 | 1,146 | 303 | 2,500 | 1,667 | |||||||||||||||||||||
(Loss) gain on the sale of office properties and equipment, net | (564 | ) | (362 | ) | (42 | ) | (153 | ) | (148 | ) | (1,121 | ) | 1,627 | |||||||||||||||
Other | 2,254 | 2,225 | 2,574 | 2,376 | 2,581 | 9,429 | 9,287 | |||||||||||||||||||||
Total non-interest income | 32,445 | 36,622 | 45,484 | 36,752 | 38,425 | 151,303 | 142,616 | |||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Employee compensation and benefits | 37,922 | 34,258 | 37,908 | 41,090 | 38,759 | 151,178 | 150,804 | |||||||||||||||||||||
Occupancy and equipment | 17,026 | 16,954 | 15,927 | 15,944 | 16,247 | 65,851 | 57,308 | |||||||||||||||||||||
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 | 5,659 | 4,276 | 4,209 | 5,858 | 10,400 | 20,002 | 35,067 | |||||||||||||||||||||
Professional fees | 3,067 | 2,542 | 1,368 | 1,713 | 1,632 | 8,690 | 8,291 | |||||||||||||||||||||
Costs associated with debt redemption | — | — | — | — | — | — | 1,457 | |||||||||||||||||||||
Check losses | 3,547 | 3,341 | 2,731 | 1,857 | 2,639 | 11,476 | 8,615 | |||||||||||||||||||||
Supplies and postage | 1,502 | 1,159 | 1,632 | 1,853 | 1,736 | 6,146 | 6,853 | |||||||||||||||||||||
Telecommunication | 1,348 | 1,286 | 1,556 | 1,381 | 1,233 | 5,571 | 4,785 | |||||||||||||||||||||
Restructuring charges | 5,681 | 117 | — | 2,553 | — | 8,351 | — | |||||||||||||||||||||
Other | 6,720 | 6,858 | 6,724 | 7,244 | 7,195 | 27,546 | 27,006 | |||||||||||||||||||||
Total non-interest expense | 82,472 | 81,679 | 73,177 | 79,493 | 79,841 | 316,821 | 300,186 | |||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (17,724 | ) | (50,247 | ) | 13,443 | (3,056 | ) | (424 | ) | (57,584 | ) | 33,976 | ||||||||||||||||
(Benefit) provision for income taxes | (7,798 | ) | (20,637 | ) | 1,715 | (852 | ) | (1,472 | ) | (27,572 | ) | 7,097 | ||||||||||||||||
(Loss) income from continuing operations | (9,926 | ) | (29,610 | ) | 11,728 | (2,204 | ) | 1,048 | (30,012 | ) | 26,879 | |||||||||||||||||
Discontinued operations | — | — | (108 | ) | 7,920 | (2,718 | ) | 7,812 | (11,492 | ) | ||||||||||||||||||
Net (loss) income | $ | (9,926 | ) | (29,610 | ) | 11,620 | 5,716 | (1,670 | ) | (22,200 | ) | 15,387 | ||||||||||||||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
Consolidated Average Balance Sheet (unaudited)
For the Three Months Ended | ||||||||||||||||||||
(in thousands except percentages and per share data) | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | |||||||||||||||
Loans: | ||||||||||||||||||||
Residential real estate | $ | 2,196,552 | 2,245,138 | 2,215,606 | 2,181,478 | 2,176,047 | ||||||||||||||
Commercial real estate | 1,317,578 | 1,346,842 | 1,384,405 | 1,420,944 | 1,462,005 | |||||||||||||||
Consumer | 697,764 | 662,320 | 635,370 | 606,472 | 584,972 | |||||||||||||||
Commercial business | 132,677 | 134,390 | 147,026 | 156,237 | 155,884 | |||||||||||||||
Small business | 309,322 | 304,388 | 295,483 | 285,387 | 276,103 | |||||||||||||||
Total Loans | 4,653,893 | 4,693,078 | 4,677,890 | 4,650,518 | 4,655,011 | |||||||||||||||
Investments — taxable | 1,036,382 | 841,486 | 795,156 | 743,936 | 740,568 | |||||||||||||||
Investments — tax exempt | 135,961 | 402,482 | 399,160 | 398,388 | 400,804 | |||||||||||||||
Total interest earning assets | 5,826,236 | 5,937,046 | 5,872,206 | 5,792,842 | 5,796,383 | |||||||||||||||
Goodwill and core deposit intangibles | 76,068 | 76,419 | 76,784 | 81,124 | 83,708 | |||||||||||||||
Discontinued assets held for sale | — | — | — | 118,319 | 232,317 | |||||||||||||||
Other non-interest earning assets | 451,397 | 465,427 | 457,817 | 446,785 | 407,149 | |||||||||||||||
Total assets | $ | 6,353,701 | 6,478,892 | 6,406,807 | 6,439,070 | 6,519,557 | ||||||||||||||
Tangible assets (note 1) | $ | 6,277,633 | 6,402,473 | 6,330,023 | 6,357,946 | 6,435,849 | ||||||||||||||
Deposits: | ||||||||||||||||||||
Demand deposits | $ | 885,006 | 922,293 | 989,259 | 989,293 | 1,006,242 | ||||||||||||||
Savings | 589,966 | 611,862 | 605,939 | 529,435 | 413,239 | |||||||||||||||
NOW | 830,898 | 792,462 | 782,018 | 771,017 | 735,164 | |||||||||||||||
Money market | 638,041 | 660,925 | 677,545 | 650,383 | 694,057 | |||||||||||||||
Certificates of deposit | 1,015,940 | 996,415 | 993,458 | 961,716 | 927,431 | |||||||||||||||
Total deposits | 3,959,851 | 3,983,957 | 4,048,219 | 3,901,844 | 3,776,133 | |||||||||||||||
Short-term borrowed funds | 182,134 | 225,034 | 151,656 | 197,683 | 189,519 | |||||||||||||||
FHLB advances | 1,368,242 | 1,398,245 | 1,344,855 | 1,405,279 | 1,528,039 | |||||||||||||||
Long-term debt | 321,885 | 318,762 | 293,489 | 292,899 | 293,592 | |||||||||||||||
Total borrowings | 1,872,261 | 1,942,041 | 1,790,000 | 1,895,861 | 2,011,150 | |||||||||||||||
Discontinued liabilities held for sale | — | — | — | 61,202 | 141,254 | |||||||||||||||
Other liabilities | 50,554 | 46,805 | 43,465 | 50,722 | 57,832 | |||||||||||||||
Total liabilities | 5,882,666 | 5,972,803 | 5,881,684 | 5,909,629 | 5,986,369 | |||||||||||||||
Stockholders’ equity | 471,035 | 506,089 | 525,123 | 529,441 | 533,188 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,353,701 | 6,478,892 | 6,406,807 | 6,439,070 | 6,519,557 | ||||||||||||||
Other comprehensive (loss) income in stockholders’ equity | (3,562 | ) | (1,765 | ) | 377 | (2,142 | ) | (4,379 | ) | |||||||||||
Tangible stockholders’ equity (note 1) | $ | 398,529 | 431,435 | 447,962 | 450,459 | 453,859 | ||||||||||||||
Net Interest Margin | 2.95 | % | 3.11 | % | 3.27 | % | 3.35 | % | 3.56 | % | ||||||||||
Period End | ||||||||||||||||||||
Total loans, net | $ | 4,524,188 | 4,586,625 | 4,618,690 | 4,622,784 | 4,595,920 | ||||||||||||||
Total assets | 6,378,817 | 6,485,593 | 6,495,047 | 6,380,176 | 6,495,662 | |||||||||||||||
Total stockholders’ equity | 459,321 | 471,889 | 512,724 | 514,977 | 524,982 | |||||||||||||||
Class A common shares outstanding | 51,196,175 | 51,168,201 | 53,212,871 | 54,956,368 | 56,157,425 | |||||||||||||||
Class B common shares outstanding | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | |||||||||||||||
Cash dividends | 281,130 | 2,315,458 | 2,386,145 | 2,458,490 | 2,507,673 | |||||||||||||||
Common stock cash dividends per share | 0.005 | 0.0412 | 0.0410 | 0.0410 | 0.0410 | |||||||||||||||
Closing stock price | 4.10 | 8.67 | 8.61 | 10.96 | 13.81 | |||||||||||||||
High stock price for the quarter | 9.60 | 9.25 | 11.25 | 13.98 | 13.94 | |||||||||||||||
Low stock price for the quarter | 2.89 | 7.50 | 8.38 | 10.87 | 12.66 | |||||||||||||||
Book value per share | 8.19 | 8.42 | 8.83 | 8.61 | 8.60 |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||||
Net interest income | $ | 47,291 | 49,235 | 50,914 | 52,070 | 54,103 | 199,510 | 219,605 | ||||||||||||||||||||
Provision for loan losses | 9,515 | 48,949 | 4,917 | 7,461 | 8,160 | 70,842 | 8,574 | |||||||||||||||||||||
Net interest income after provision for loan losses | 37,776 | 286 | 45,997 | 44,609 | 45,943 | 128,668 | 211,031 | |||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 26,342 | 25,894 | 25,808 | 24,595 | 26,091 | 102,639 | 90,472 | |||||||||||||||||||||
Other service charges and fees | 7,171 | 7,222 | 7,524 | 7,033 | 7,188 | 28,950 | 27,542 | |||||||||||||||||||||
Securities activities, net | 861 | 613 | 212 | 621 | 200 | 2,307 | 657 | |||||||||||||||||||||
Gain on sales of loans | 68 | 88 | 138 | 200 | 211 | 494 | 680 | |||||||||||||||||||||
Gain associated with debt redemption | — | — | — | — | — | — | 1,528 | |||||||||||||||||||||
Income from unconsolidated subsidiaries | 163 | 182 | 509 | 365 | 33 | 1,219 | 33 | |||||||||||||||||||||
(Loss) gain on the sale of office properties, net | (564 | ) | (362 | ) | (42 | ) | (153 | ) | (148 | ) | (1,121 | ) | 1,627 | |||||||||||||||
Other non-interest income | 2,249 | 2,224 | 2,535 | 2,386 | 2,590 | 9,394 | 9,305 | |||||||||||||||||||||
Total non-interest income | 36,290 | 35,861 | 36,684 | 35,047 | 36,165 | 143,882 | 131,844 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 37,221 | 34,244 | 36,628 | 40,664 | 37,709 | 148,757 | 146,099 | |||||||||||||||||||||
Occupancy and equipment | 17,023 | 16,951 | 15,923 | 15,942 | 16,242 | 65,839 | 57,291 | |||||||||||||||||||||
Impairment of real estate held for sale | — | 3,655 | 1,056 | — | — | 4,711 | — | |||||||||||||||||||||
Impairment of real estate owned | — | 7,233 | 66 | — | — | 7,299 | — | |||||||||||||||||||||
Advertising | 5,596 | 4,221 | 4,079 | 5,788 | 10,331 | 19,684 | 34,659 | |||||||||||||||||||||
Professional fees | 2,969 | 2,444 | 1,233 | 1,620 | 1,576 | 8,266 | 7,653 | |||||||||||||||||||||
Costs associated with debt redemption | — | — | — | — | — | — | 1,457 | |||||||||||||||||||||
Check losses | 3,547 | 3,341 | 2,731 | 1,857 | 2,639 | 11,476 | 8,615 | |||||||||||||||||||||
Supplies and postage | 1,441 | 1,158 | 1,629 | 1,850 | 1,735 | 6,078 | 6,833 | |||||||||||||||||||||
Telecommunication | 1,342 | 1,283 | 1,548 | 1,379 | 1,230 | 5,552 | 4,774 | |||||||||||||||||||||
Restructuring and exit activities | 5,681 | 117 | — | 2,553 | — | 8,351 | — | |||||||||||||||||||||
Other | 6,761 | 6,848 | 6,629 | 7,117 | 7,017 | 27,355 | 26,067 | |||||||||||||||||||||
Total non-interest expense | 81,581 | 81,495 | 71,522 | 78,770 | 78,479 | 313,368 | 293,448 | |||||||||||||||||||||
(Loss) income from bank operations business segment before income taxes | (7,515 | ) | (45,348 | ) | 11,159 | 886 | 3,629 | (40,818 | ) | 49,427 | ||||||||||||||||||
(Benefit) provision for income taxes | (4,143 | ) | (18,236 | ) | 754 | 247 | 11 | (21,378 | ) | 13,105 | ||||||||||||||||||
Net (loss) income from bank operations business segment | $ | (3,372 | ) | (27,112 | ) | 10,405 | 639 | 3,618 | (19,440 | ) | 36,322 | |||||||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||
(in thousands except percentages and per share data) | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,653,913 | 5,750,192 | 5,690,488 | 5,666,507 | 5,702,063 | 5,690,404 | 5,606,272 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,656,897 | 4,718,381 | 4,590,419 | 4,551,448 | 4,520,332 | 4,629,819 | 4,377,033 | ||||||||||||||||||||
Average tangible assets | $ | 6,080,693 | 6,194,549 | 6,127,470 | 6,092,568 | 6,086,579 | 6,123,978 | 5,976,464 | ||||||||||||||||||||
Average tangible equity | $ | 481,495 | 507,963 | 504,091 | 502,827 | 505,580 | 499,158 | 493,972 | ||||||||||||||||||||
Borrowings to deposits and borrowings | % | 28.74 | 29.89 | 28.74 | 26.39 | 30.36 | 28.74 | 30.36 | ||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||||||||
Yield on earning assets | % | 6.33 | 6.71 | 6.70 | 6.71 | 6.83 | 6.61 | 6.65 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 3.54 | 3.80 | 3.70 | 3.65 | 3.62 | 3.67 | 3.34 | ||||||||||||||||||||
Interest spread | % | 2.79 | 2.91 | 3.00 | 3.06 | 3.21 | 2.94 | 3.31 | ||||||||||||||||||||
Net interest margin | % | 3.41 | 3.59 | 3.72 | 3.78 | 3.96 | 3.62 | 4.04 | ||||||||||||||||||||
Performance: | ||||||||||||||||||||||||||||
Efficiency ratio | % | 97.61 | 95.77 | 81.65 | 90.42 | 86.94 | 91.26 | 83.50 | ||||||||||||||||||||
Return on average tangible assets | % | (0.22 | ) | (1.75 | ) | 0.68 | 0.04 | 0.24 | (0.32 | ) | 0.61 | |||||||||||||||||
Return on average tangible equity | % | (2.80 | ) | (21.35 | ) | 8.26 | 0.51 | 2.86 | (3.89 | ) | 7.35 | |||||||||||||||||
Earning assets repricing: | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 54 | 54 | 54 | 54 | 52 | �� | |||||||||||||||||||||
Percent of earning assets that have variable rates | % | 46 | 46 | 46 | 46 | 48 | ||||||||||||||||||||||
One year Gap | % | (3 | ) | (9 | ) | (7 | ) | (3 | ) | (4 | ) |
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(in thousands) | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,524,188 | 4,586,625 | 4,618,690 | 4,622,784 | 4,595,920 | ||||||||||||||
Investment securities | 262,404 | 482,666 | 507,593 | 424,487 | 475,790 | |||||||||||||||
Available for sale securities | 789,917 | 570,624 | 563,318 | 556,404 | 559,629 | |||||||||||||||
Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 5,397 | 5,747 | 6,097 | 6,447 | 6,834 | |||||||||||||||
Other assets | 509,567 | 557,951 | 505,874 | 495,098 | 478,460 | |||||||||||||||
Total assets | $ | 6,161,962 | 6,274,102 | 6,272,061 | 6,175,709 | 6,187,122 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand | $ | 824,211 | 896,094 | 971,260 | 1,031,628 | 995,930 | ||||||||||||||
NOW | 900,233 | 801,289 | 769,994 | 799,300 | 779,383 | |||||||||||||||
Savings | 580,497 | 613,010 | 608,791 | 598,579 | 465,172 | |||||||||||||||
Money market | 624,390 | 656,218 | 666,820 | 653,231 | 677,642 | |||||||||||||||
Certificates of deposit | 1,024,074 | 1,002,197 | 1,000,278 | 1,002,284 | 948,919 | |||||||||||||||
Total deposits | 3,953,405 | 3,968,808 | 4,017,143 | 4,085,022 | 3,867,046 | |||||||||||||||
Advances from Federal Home Loan Bank | 1,397,044 | 1,417,047 | 1,397,051 | 1,297,055 | 1,517,058 | |||||||||||||||
Short term borrowings | 170,433 | 245,895 | 193,937 | 137,914 | 138,686 | |||||||||||||||
Long term debt | 26,654 | 29,125 | 29,397 | 29,654 | 29,923 | |||||||||||||||
Other liabilities | 79,147 | 74,539 | 67,747 | 63,108 | 68,460 | |||||||||||||||
Total liabilities | 5,626,683 | 5,735,414 | 5,705,275 | 5,612,753 | 5,621,173 | |||||||||||||||
Stockholder’s equity | 535,279 | 538,688 | 566,786 | 562,956 | 565,949 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,161,962 | 6,274,102 | 6,272,061 | 6,175,709 | 6,187,122 | ||||||||||||||
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,196,552 | 30,175 | 5.49 | % | $ | 2,176,047 | 29,212 | 5.37 | % | ||||||||||||||
Commercial real estate | 1,317,578 | 23,273 | 7.07 | 1,462,005 | 31,245 | 8.55 | ||||||||||||||||||
Consumer | 697,764 | 12,006 | 6.88 | 584,972 | 11,321 | 7.74 | ||||||||||||||||||
Commercial business | 132,677 | 2,875 | 8.67 | 155,884 | 3,515 | 9.02 | ||||||||||||||||||
Small business | 309,322 | 6,086 | 7.87 | 276,103 | 5,725 | 8.29 | ||||||||||||||||||
Total loans | 4,653,893 | 74,415 | 6.40 | 4,655,011 | 81,018 | 6.96 | ||||||||||||||||||
Investments — tax exempt | 130,850 | 1,860 | (1) | 5.69 | 397,105 | 5,806 | (1) | 5.85 | ||||||||||||||||
Investments — taxable | 869,170 | 13,262 | 6.10 | 649,947 | 10,512 | 6.47 | ||||||||||||||||||
Total interest earning assets | 5,653,913 | 89,537 | 6.33 | % | 5,702,063 | 97,336 | 6.83 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 76,068 | 77,524 | ||||||||||||||||||||||
Other non-interest earning assets | 426,780 | 384,516 | ||||||||||||||||||||||
Total Assets | $ | 6,156,761 | $ | 6,164,103 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 589,967 | 2,946 | 1.98 | % | $ | 413,239 | 1,379 | 1.32 | % | ||||||||||||||
NOW | 830,898 | 2,533 | 1.21 | 735,164 | 1,327 | 0.72 | ||||||||||||||||||
Money market | 638,041 | 4,274 | 2.66 | 694,057 | 4,003 | 2.29 | ||||||||||||||||||
Certificates of deposit | 1,015,940 | 11,690 | 4.57 | 927,431 | 10,549 | 4.51 | ||||||||||||||||||
Total interest bearing deposits | 3,074,846 | 21,443 | 2.77 | 2,769,891 | 17,258 | 2.47 | ||||||||||||||||||
Short-term borrowed funds | 186,118 | 2,108 | 4.49 | 192,532 | 2,548 | 5.25 | ||||||||||||||||||
Advances from FHLB | 1,368,242 | 17,443 | 5.06 | 1,528,039 | 20,837 | 5.41 | ||||||||||||||||||
Long-term debt | 27,691 | 601 | 8.61 | 29,870 | 643 | 8.54 | ||||||||||||||||||
Total interest bearing liabilities | 4,656,897 | 41,595 | 3.54 | 4,520,332 | 41,286 | 3.62 | ||||||||||||||||||
Demand deposits | 885,398 | 1,006,959 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 61,451 | 62,601 | ||||||||||||||||||||||
Total Liabilities | 5,603,746 | 5,589,892 | ||||||||||||||||||||||
Stockholder’s equity | 553,015 | 574,211 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,156,761 | $ | 6,164,103 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | 47,942 | 2.79 | % | 56,050 | 3.21 | % | ||||||||||||||||||
Tax equivalent adjustment | (651 | ) | (2,032 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | — | 85 | ||||||||||||||||||||||
Net interest income | 47,291 | 54,103 | �� | |||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.33 | % | 6.83 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.92 | 2.87 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.41 | % | 3.96 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Year Ended | ||||||||||||||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,209,832 | 120,768 | 5.47 | % | $ | 2,099,664 | 109,103 | 5.20 | % | ||||||||||||||
Commercial real estate | 1,367,095 | 108,931 | 7.97 | 1,499,388 | 126,019 | 8.40 | ||||||||||||||||||
Loan participations sold | — | — | — | 30,894 | 2,401 | 7.77 | ||||||||||||||||||
Consumer | 650,764 | 47,625 | 7.32 | 558,769 | 41,997 | 7.52 | ||||||||||||||||||
Commercial business | 142,455 | 12,720 | 8.93 | 140,465 | 12,452 | 8.86 | ||||||||||||||||||
Small business | 298,774 | 23,954 | 8.02 | 259,816 | 20,988 | 8.08 | ||||||||||||||||||
Total loans | 4,668,920 | 313,998 | 6.73 | 4,588,996 | 312,960 | 6.82 | ||||||||||||||||||
Investments — tax exempt | 328,583 | 19,272 | (1) | 5.87 | 396,539 | 23,162 | (1) | 5.84 | ||||||||||||||||
Investments — taxable | 692,901 | 43,044 | 6.21 | 620,737 | 36,934 | 5.95 | ||||||||||||||||||
Total interest earning assets | 5,690,404 | 376,314 | 6.61 | % | 5,606,272 | 373,056 | 6.65 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 76,599 | 78,104 | ||||||||||||||||||||||
Other non-interest earning assets | 433,574 | 370,192 | ||||||||||||||||||||||
Total Assets | $ | 6,200,577 | $ | 6,054,568 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 584,542 | 12,559 | 2.15 | % | $ | 369,504 | 2,936 | 0.79 | % | ||||||||||||||
NOW | 794,258 | 8,149 | 1.03 | 746,837 | 4,433 | 0.59 | ||||||||||||||||||
Money market | 656,702 | 17,882 | 2.72 | 755,221 | 15,980 | 2.12 | ||||||||||||||||||
Certificates of deposit | 992,043 | 45,886 | 4.63 | 868,777 | 35,610 | 4.10 | ||||||||||||||||||
Total deposits | 3,027,545 | 84,476 | 2.79 | 2,740,339 | 58,959 | 2.15 | ||||||||||||||||||
Short-term borrowed funds | 194,222 | 9,829 | 5.06 | 304,635 | 15,309 | 5.03 | ||||||||||||||||||
Advances from FHLB | 1,379,106 | 73,256 | 5.31 | 1,265,772 | 66,492 | 5.25 | ||||||||||||||||||
Secured borrowings | — | — | — | 30,894 | 2,401 | 7.77 | ||||||||||||||||||
Long-term debt | 28,946 | 2,498 | 8.63 | 35,393 | 3,112 | 8.79 | ||||||||||||||||||
Total interest bearing liabilities | 4,629,819 | 170,059 | 3.67 | 4,377,033 | 146,273 | 3.34 | ||||||||||||||||||
Demand deposits | 946,356 | 1,056,254 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 55,683 | 61,392 | ||||||||||||||||||||||
Total Liabilities | 5,631,858 | 5,494,679 | ||||||||||||||||||||||
Stockholder’s equity | 568,719 | 559,889 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,200,577 | $ | 6,054,568 | ||||||||||||||||||||
Net interest income/net interest spread | 206,255 | 2.94 | % | 226,783 | 3.31 | % | ||||||||||||||||||
Tax equivalent adjustment | (6,745 | ) | (8,107 | ) | ||||||||||||||||||||
Capitalized interest from real estate operations | — | 929 | ||||||||||||||||||||||
Net interest income | 199,510 | 219,605 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 6.61 | % | 6.65 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.99 | 2.61 | ||||||||||||||||||||||
Net interest margin | 3.62 | % | 4.04 | % | ||||||||||||||||||||
Net interest margin (tax equivalent) excluding secured borrowings | 3.62 | % | 4.07 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 92,358 | 54,754 | 50,373 | 43,602 | 42,517 | 43,602 | 41,192 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (255 | ) | (3 | ) | (52 | ) | (151 | ) | — | (461 | ) | (239 | ) | |||||||||||||||
Commercial real estate | (3,118 | ) | (9,444 | ) | — | — | (7,000 | ) | (12,562 | ) | (7,000 | ) | ||||||||||||||||
Commercial business | — | — | — | — | — | — | (34 | ) | ||||||||||||||||||||
Consumer | (4,094 | ) | (1,689 | ) | (744 | ) | (538 | ) | (209 | ) | (7,065 | ) | (681 | ) | ||||||||||||||
Small business | (534 | ) | (581 | ) | (1,001 | ) | (438 | ) | (544 | ) | (2,554 | ) | (951 | ) | ||||||||||||||
Total charge-offs | (8,001 | ) | (11,717 | ) | (1,797 | ) | (1,127 | ) | (7,753 | ) | (22,642 | ) | (8,905 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | — | — | 15 | — | — | 15 | 348 | |||||||||||||||||||||
Commercial real estate | — | — | 304 | — | — | 304 | 19 | |||||||||||||||||||||
Commercial business | 14 | 29 | 777 | 42 | 379 | 862 | 660 | |||||||||||||||||||||
Consumer | 49 | 120 | 81 | 167 | 76 | 417 | 536 | |||||||||||||||||||||
Small business | 85 | 223 | 84 | 228 | 114 | 620 | 566 | |||||||||||||||||||||
Other | — | — | — | — | 109 | — | 612 | |||||||||||||||||||||
Total recoveries | 148 | 372 | 1,261 | 437 | 678 | 2,218 | 2,741 | |||||||||||||||||||||
Net (charge-offs) recoveries | (7,853 | ) | (11,345 | ) | (536 | ) | (690 | ) | (7,075 | ) | (20,424 | ) | (6,164 | ) | ||||||||||||||
Provision for loan losses | 9,515 | 48,949 | 4,917 | 7,461 | 8,160 | 70,842 | 8,574 | |||||||||||||||||||||
Ending balance | $ | 94,020 | 92,358 | 54,754 | 50,373 | 43,602 | 94,020 | 43,602 | ||||||||||||||||||||
Annualized net charge-offs (recoveries) to average loans | % | 0.67 | 0.97 | 0.05 | 0.06 | 0.61 | 0.44 | 0.14 | ||||||||||||||||||||
As of | ||||||||||||||||||||
12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 178,591 | 165,369 | 21,806 | 25,746 | 4,436 | ||||||||||||||
Nonaccrual tax certificates | 2,094 | 1,140 | 711 | 597 | 631 | |||||||||||||||
Real estate owned | 17,216 | 17,159 | 23,886 | 23,135 | 21,747 | |||||||||||||||
Other repossessed assets | — | — | — | — | — | |||||||||||||||
Total nonperforming assets, gross | 197,901 | 183,668 | 46,403 | 49,478 | 26,814 | |||||||||||||||
Nonperforming assets, gross to total loans and other assets | % | 4.10 | 3.74 | 0.94 | 1.02 | 0.55 | ||||||||||||||
Allowance for loan losses to total loans | % | 2.04 | 1.97 | 1.17 | 1.08 | 0.94 | ||||||||||||||
Provision to average loans | % | 0.82 | 4.17 | 0.42 | 0.64 | 0.70 | ||||||||||||||
Allowance to nonaccrual loans | % | 52.65 | 55.85 | 251.10 | 195.65 | 982.91 |
(1) | Average and total loans exclude loan participations sold financed by secured borrowings. |
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
Condensed Statements of Operations — Unaudited
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||||
Net interest (expense) | $ | (5,473 | ) | (5,476 | ) | (4,861 | ) | (4,924 | ) | (4,952 | ) | (20,734 | ) | (19,485 | ) | |||||||||||||
Non-Interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 174 | 167 | 159 | 781 | 270 | 1,281 | 1,634 | |||||||||||||||||||||
Securities activities, net | (4,024 | ) | 594 | 8,601 | 934 | 2,000 | 6,105 | 9,156 | ||||||||||||||||||||
Other | 275 | 156 | 254 | 179 | — | 864 | — | |||||||||||||||||||||
Non-interest income | (3,575 | ) | 917 | 9,014 | 1,894 | 2,270 | 8,250 | 10,790 | ||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 701 | 14 | 1,280 | 426 | 1,050 | 2,421 | 4,705 | |||||||||||||||||||||
Advertising and promotion | 62 | 55 | 130 | 70 | 70 | 317 | 408 | |||||||||||||||||||||
Professional fees | 98 | 98 | 135 | 93 | 56 | 424 | 638 | |||||||||||||||||||||
Other | 300 | 173 | 324 | 323 | 194 | 1,120 | 1,005 | |||||||||||||||||||||
Non-interest expense | 1,161 | 340 | 1,869 | 912 | 1,370 | 4,282 | 6,756 | |||||||||||||||||||||
(Loss) income from parent company activities before income taxes | (10,209 | ) | (4,899 | ) | 2,284 | (3,942 | ) | (4,052 | ) | (16,766 | ) | (15,451 | ) | |||||||||||||||
(Benefit) provision for income taxes | (3,655 | ) | (2,401 | ) | 961 | (1,099 | ) | (1,484 | ) | (6,194 | ) | (6,008 | ) | |||||||||||||||
Net (loss) income from parent company business segment | $ | (6,554 | ) | (2,498 | ) | 1,323 | (2,843 | ) | (2,568 | ) | (10,572 | ) | (9,443 | ) | ||||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||||||||||
(in thousands) | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash | $ | 9,163 | 12,540 | 28,332 | 14,699 | 4,852 | ||||||||||||||||||||||
Securities | 185,724 | 201,155 | 193,979 | 194,257 | 103,218 | |||||||||||||||||||||||
Investment in subsidiaries | 535,281 | 538,691 | 566,787 | 562,958 | 661,467 | |||||||||||||||||||||||
Investment in unconsolidated subsidiaries | 8,820 | 8,839 | 8,685 | 7,910 | 11,996 | |||||||||||||||||||||||
Other assets | 16,339 | 8,466 | 8,370 | 2,929 | 12,165 | |||||||||||||||||||||||
Total assets | $ | 755,327 | 769,691 | 806,153 | 782,753 | 793,698 | ||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
Subordinated debentures and notes payable | $ | 294,195 | 294,195 | 289,040 | 263,266 | 263,266 | ||||||||||||||||||||||
Other liabilities | 1,811 | 3,607 | 4,389 | 4,510 | 5,450 | |||||||||||||||||||||||
Total liabilities | 296,006 | 297,802 | 293,429 | 267,776 | 268,716 | |||||||||||||||||||||||
Stockholders’ equity | 459,321 | 471,889 | 512,724 | 514,977 | 524,982 | |||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 755,327 | 769,691 | 806,153 | 782,753 | 793,698 | ||||||||||||||||||||||