Exhibit 99.1
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BankAtlantic Bancorp Reports Financial Results
For the Fourth Quarter and Full Year, 2008
- BankAtlantic’s Fourth Quarter of 2008 loss led by non-cash goodwill impairment and
non-cash deferred tax asset valuation charges-
- BankAtlantic’s pre-tax core operating earnings(1) increased 28.9%
for the full 2008 year -
- Balance sheet strengthened through increased loan loss reserves, decreased leverage and
continued well-capitalized ratios -
FORT LAUDERDALE, Florida — February 10, 2009 —BankAtlantic Bancorp, Inc. (NYSE: BBX) today reported a loss for the quarter and year ending December 31, 2008.
Fourth Quarter 2008
The net loss of ($156.6) million or ($13.94) per diluted share for the fourth quarter of 2008 was driven by non-cash charges of $129.6 million, comprised of a goodwill impairment charge of $48.3 million at BankAtlantic, the banking subsidiary of BankAtlantic Bancorp, and an $81.3 million non-cash deferred tax asset valuation allowance. Of this deferred tax asset allowance, $67.4 million was reflected at BankAtlantic and $13.9 million was reflected at the parent company level. See further discussion in the Income Taxes section below. While reflected in the fourth quarter’s earnings, the goodwill impairment and the deferred tax asset allowance have no impact on ongoing operations and did not affect BankAtlantic’s regulatory capital, well-capitalized status, cash or liquidity.
Excluding the goodwill impairment and deferred tax asset allowance, BankAtlantic Bancorp’s net loss for the fourth quarter of 2008 was ($27.0) million or ($2.41) per diluted share, compared to a net loss of ($9.9) million or ($0.89) per diluted share, in the fourth quarter of 2007.
(1) | Core operating earnings is defined as pretax earnings before loan and tax certificate provisions, debt redemption costs and impairment, restructuring and exit activities. |
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Full Year 2008
For the full year 2008, BankAtlantic Bancorp (the “Company”) reported a net loss of ($205.5) million or ($18.30) per diluted share. Excluding the goodwill impairment and the deferred tax asset allowance, the Company’s net loss was ($75.9) million for the full year 2008, or ($6.76) per diluted share, compared to a net loss of ($22.2) million or ($1.91) per diluted share for the full year 2007.
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “The U.S. economy is experiencing one of the deepest and longest economic downturns in its history and the Florida economy mirrors the national landscape. In fact, certain sectors of the real estate market in South Florida have been impacted more severely than the U.S. markets in general, and our results reflect these extraordinarily challenging economic times.
“BankAtlantic’s 57 year history is deeply rooted in community banking and we have proudly supported the growth and vibrancy of our communities. Unfortunately, the homebuilding and commercial real estate sectors have faced unprecedented challenges in Florida. This is clearly evidenced in the results of our Commercial Real Estate portfolio, which prior to the downturn, had suffered minimal losses in over 20 years.
“BankAtlantic has operated during all phases of economic cycles over the past half century, and although no cycle is identical, we believe that our long term success will depend on our continued focus on three principles: managing credit, improving core operating earnings, and maintaining appropriate capital levels. While our success at managing credit risk is clearly impacted by the state of the economy, we believe we are prudently managing our portfolio and anticipate improvement as the overall economy recovers. Although disappointed with continuing losses and charge-offs, BankAtlantic’s core operating earnings (defined as pretax earnings before loan and tax certificate provisions, debt redemption costs and impairment, restructuring and exit activities) increased significantly during 2008 and, most importantly, the Bank’s capital levels continue to exceed all regulatory ‘well-capitalized’ ratios. Specifically, as of December 31, 2008:
• | “BankAtlantic’s capital levels exceeded all regulatory ‘well-capitalized’ thresholds, essentially unchanged from the fourth quarter of 2007. |
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• | “BankAtlantic’s pre-tax core operating earnings increased to $65.4 million for the full 2008 year versus $50.7 million for the full 2007 year, an increase of 28.9% |
• | “During the quarter, BankAtlantic funded over $148 million in commercial, consumer and small business loans, which we believe is not only appropriate but vital to the economic recovery of our communities. At the same time, as part of its capital management efforts, BankAtlantic reduced its assets by over $283 million during the quarter, primarily as a result of using scheduled repayments of loans and investment securities to reduce borrowings. |
• | “A key strength of the BankAtlantic franchise has always been and continues to be our low cost deposit base. Of our total deposits at December 31, 2008, approximately 66% were non-CD balances with a deposit cost of 0.61%. Brokered CDs as a percent of assets were 4% at quarter-end. While we continued to grow both core and total deposits during the fourth quarter of 2008 over the prior quarter, our total cost of deposits remained very attractive at 1.59%. |
• | “BankAtlantic effectively reduced its ratio of total borrowings to deposits plus borrowings from 30.0% at September 30, 2008 to 25.0% at December 31, 2008, a further strengthening of its balance sheet. |
• | “As we have reported previously, BankAtlantic’s lending practices have never included subprime, option-arm or negative amortization products, and its investment portfolio does not include credit default swaps, commercial paper, collateralized debt obligations (CDO’s), structured investment vehicles (SIV’s), Auction Rate Securities, Fannie Mae or Freddie Mac equity. |
“Again, we believe that BankAtlantic’s long term success requires our continued focus on managing credit, improving core operating earnings, maintaining appropriate capital levels, and making our customers our number one priority. This formula has proven correct over time. Ultimately, while banks and the financial landscape continue to change, BankAtlantic remains ready to serve Florida’s residents as it has for over a half century,” concluded Alan B. Levan.
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BankAtlantic Highlights:
BankAtlantic Performance:
Capital Strength — BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “BankAtlantic is well-capitalized, with Core, Tier I and Total Capital ratios of 6.77%, 9.75% and 11.58% at December 31, 2008, respectively, well in excess of the regulatory
well-capitalized thresholds of 5.0%, 6.0% and 10.0%. These ratios are essentially unchanged from the fourth quarter of 2007. Additionally, BankAtlantic’s ratio of tangible common equity to tangible assets (“TCE”) was 6.8% at December 31, 2008. During the fourth quarter of 2008, BankAtlantic substantially offset the impact of its net loss on its regulatory capital position through an effective reduction of over $283 million in assets (before the goodwill impairment and deferred tax asset write-downs), primarily as a result of payments received on residential loans and redemptions of tax certificates by property owners. BankAtlantic did not receive any capital contributions during the fourth quarter from its holding company, BankAtlantic Bancorp. However, BankAtlantic Bancorp contributed $65.0 million to BankAtlantic during the first nine months of 2008.
well-capitalized thresholds of 5.0%, 6.0% and 10.0%. These ratios are essentially unchanged from the fourth quarter of 2007. Additionally, BankAtlantic’s ratio of tangible common equity to tangible assets (“TCE”) was 6.8% at December 31, 2008. During the fourth quarter of 2008, BankAtlantic substantially offset the impact of its net loss on its regulatory capital position through an effective reduction of over $283 million in assets (before the goodwill impairment and deferred tax asset write-downs), primarily as a result of payments received on residential loans and redemptions of tax certificates by property owners. BankAtlantic did not receive any capital contributions during the fourth quarter from its holding company, BankAtlantic Bancorp. However, BankAtlantic Bancorp contributed $65.0 million to BankAtlantic during the first nine months of 2008.
Deposits and Liquidity— “BankAtlantic’s deposit base continues to be a stable funding source, with over 66% of our $3.9 billion in total deposits at December 31, 2008 comprised of non-CD balances, with an average cost of non-CD deposits and total deposits for the fourth quarter of 2008 of 0.61% and 1.59%, respectively. We believe the low-cost nature of BankAtlantic’s deposit base is a differentiating strength of its franchise, particularly in the current economy.
“Core deposits (demand, NOW and savings accounts) and total deposits at December 31, 2008 increased approximately $16 million and $58 million, respectively, from the third quarter of 2008. During the fourth quarter of 2008, BankAtlantic proactively reduced its period-end Federal Home Loan Bank (‘FHLB’) borrowings from the third quarter by $501.0 million, or 34.0%, and reduced its ratio of total borrowings to deposits plus borrowings from 30.0% to 25.0%. Further, BankAtlantic’s brokered deposit balances at December 31, 2008 represented only 4.0% of assets, an amount we believe to be significantly below other Florida financial institutions.
Net Income — “BankAtlantic’s net loss before the goodwill impairment and deferred tax asset valuation allowance was ($19.2) million for the fourth quarter of 2008, compared to a net loss of ($3.4) million for the fourth quarter of 2007.
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“Pre-tax core operating earnings for the fourth quarter of 2008, as defined above, were $7.7 million compared to $7.8 million reported for the fourth quarter of 2007. Pre-tax core operating earnings during 2008 were $65.4 million versus $50.7 million for the 2007 year, a 28.9% improvement. Loan loss and tax certificate provisions, goodwill impairment, debt redemption costs, and impairment, restructuring and exit activity expenses, which are not included in core operating earnings, were ($88.6) million for the fourth quarter of 2008, ($48.3) million of which was goodwill impairment, and ($15.3) million for the fourth quarter of 2007, and aggregated ($202.2) million and ($91.5) million for the full years ended December 31, 2008 and 2007, respectively.
Net Interest Margin — “Net interest income for the fourth quarter of 2008 was $44.5 million compared to $47.3 million in the fourth quarter of 2007, with approximately $1.9 million of the decline from a decrease in earning assets through scheduled payments and redemptions. Additionally, the incremental impact of additional non-accrual loans during the fourth quarter of 2008 was approximately $1.3 million greater than the comparative 2007 quarter. Partially as a result of these changes, the tax equivalent net interest margin during the fourth quarter of 2008 was 3.29% versus 3.41% during the fourth quarter of 2007. Concurrently, we worked to improve the net interest spread on the balance sheet, resulting in a spread of 2.92% in the fourth quarter of 2008 compared to 2.79% in the fourth quarter of 2007.
“For the full year 2008, net interest income was similarly impacted by lower assets and increasing nonaccrual loans. Net interest income for 2008 was $193.6 million compared to $199.5 million in the comparable 2007 period. Tax equivalent net interest margin was 3.45% for 2008 versus 3.62% for the full year 2007. Lower earning asset balances reduced the margin by approximately $2.9 million during this period, while the incremental impact of nonaccrual loans was approximately $1.2 million. Similar to fourth quarter results, the full year results included a targeted improvement of the full year net interest spread in 2008 to 3.03% compared to 2.94% for the full year 2007.
Non-interest income — “Total non-interest income was 41.0% of total revenue for the fourth quarter of 2008 as well as the full year 2008, compared to 42.0% for the full year 2007. Total non-interest income for the fourth quarter of 2008 was $31.1 million and $137.3 million for the full year 2008. This source of revenue, while less than last year largely due to current economic conditions, continues to be a stable source of revenue for BankAtlantic.
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Non-interest expense— “Expense reduction initiatives have continued to result in savings as core expenses in the fourth quarter of 2008 (defined as total non-interest expense excluding goodwill impairment, provision for tax certificates, impairment, restructuring and exit activities and costs associated with debt redemption) were $67.9 million, or a 10.5% improvement over the fourth quarter of 2007 expenses of $75.8 million. For the full year 2008, core expenses were $265.6 million, or a 9.3% improvement over the full year 2007 expenses of $292.7 million. Expenses not included in core expenses consisted of the following:
• | “Goodwill impairmentof $48.3 million in the fourth quarter and for the full year 2008, versus none in 2007. The impairment was related to BankAtlantic’s Commercial Real Estate and Community divisions, a result of the economic impact on these businesses combined with the overall downturn in the industry and sustained decline in the Company’s stock price. | ||
• | “Costs associated with debt redemptionof $1.2 million in the fourth quarter and the full year 2008, versus none in 2007. These costs were associated with the prepayment of certain FHLB borrowings, which we anticipate will have the effect of improving net interest income in 2009 over what it would have otherwise been by approximately $4.8 million. | ||
• | “Impairment, restructuring and exit chargesof $3.6 million and $5.7 million in the fourth quarters of 2008 and 2007, respectively, and $10.0 million and $20.4 million for the full years 2008 and 2007, respectively, related primarily to foreclosed property held by us, impairments, and impairments of facilities held for sale and sublease as we continue to seek to reduce occupancy and facility expenses. | ||
• | “Tax certificate provision expenseof $3.6 million and $75,000 in the fourth quarters of 2008 and 2007, respectively, and $7.3 million and $300,000 for the full years 2008 and 2007, respectively. The increased provisions relate primarily to certain out of state portfolios purchased in distressed areas. |
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Credit Risk Management:
Credit— “The provision for loan losses in the fourth quarter of 2008 was $31.8 million, an increase from the prior and comparable quarters as BankAtlantic’s allowance for loan losses increased to $125.6 million at December 31, 2008, representing 2.87% of total loans, compared to 2.04% at December 31, 2007. The allowance has increased in all loan categories, particularly our Commercial Real Estate loan portfolio where we experienced a significant increase in non-accrual loans. Total non-accrual loans increased approximately $118 million in the fourth quarter of 2008, including an increase of approximately $105 million in commercial real estate non-accrual loans. Of these commercial real estate non-accruals, approximately 50% were included in the Residential Land Acquisition, Development & Construction portfolio, previously identified as higher risk in this environment. BankAtlantic experienced fourth quarter net charge-offs of $12.6 million, an improvement over each of the prior quarters in 2008, and compared to net charge-offs of $7.9 million in the fourth quarter of 2007. Full year 2008 net charge-offs were $97.4 million, compared to $20.4 million for the full year 2007. See details of charge-offs, non-accrual loans and delinquencies in the Capital & Credit Highlights tables below.
Commercial Real Estate Loans — “At December 31, 2008, BankAtlantic’s Commercial Real Estate loan portfolio totaled $1.2 billion, including the following loan categories that have been reduced during 2008 as a result of pay-downs, pay-offs, charge-offs, and/or sale to Bancorp’s asset workout subsidiary or others:
“Builder land bank loans:Consisted of 12 loans aggregating $149.6 million at December 31, 2007, including 6 loans aggregating $86.5 million on non-accrual at year end 2007; reduced to 7 loans aggregating $62.4 million at December 31, 2008, including 4 loans aggregating $40.4 million on non-accrual at year end 2008.
“Land acquisition and development loans:Consisted of 34 loans aggregating $194.9 million at December 31, 2007, including 2 loans aggregating $7.3 million on non-accrual at year end 2007; reduced to 25 loans aggregating $165.8 million at December 31, 2008, including 3 loans aggregating $33.2 million on non-accrual at year end 2008.
“Land acquisition, development and construction loans:Consisted of 29 loans aggregating $151.6 million at December 31, 2007, including 7 loans aggregating $57.2 million on non-accrual at year end 2007; reduced to 14 loans aggregating $75.5 million at December 31, 2008, including 3 loans aggregating $18.5 million on non-accrual at year end 2008.
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“These non-accrual commercial real estate loans are reflected on the Bank’s financial statements at approximately 62% of their original principal balances after charge-offs or specific reserves. In addition to the residential land loans discussed above, BankAtlantic had other commercial real estate loans totaling $69.8 million on non-accrual at December 31, 2008. If economic pressures continue to impact our borrowers, we could experience continued deterioration in our commercial real estate portfolio.
Purchased Residential Loans — “Our Purchased Residential loan portfolio was $1.9 billion at year-end, representing 42.4% of the Bank’s total loans. This portfolio consists of approximately 6,100 first mortgage loans secured by properties throughout the nation. Delinquencies, excluding non-accrual loans, at December 31, 2008 were 0.99%. While this portfolio is experiencing increased delinquencies and non-accrual balances, it is important to note that the portfolio is geographically diverse, the weighted average FICO score of borrowers in this portfolio was 742 at the time of origination and the original back end debt ratio was a weighted average of 33.4%. The current weighted average loan-to-value of the loans in this portfolio is 75.1%. Our standard products in this portfolio have never included purchased or originated subprime, negative amortizing, option-arm or ‘pick-a-payment’ loans. While we anticipate that we may experience continued deterioration in this portfolio until the broader economy improves, we do believe that the nature of this portfolio should result in better performance than many industry residential loan portfolios.
Consumer Loans — “Our Consumer loan portfolio had an outstanding balance of $745.1 million at year-end, with home equity loans representing 96.5% of this portfolio. All of our home equity loans were originated by us in our local markets with central underwriting. Approximately 23% of this portfolio is secured by first mortgages. Delinquencies, excluding non-accrual loans, at December 31, 2008 were 1.60%. We continue to work diligently with our borrowers experiencing difficulties and regularly evaluate our consumer loan available commitments and to reduce overall line exposure where appropriate; however, we anticipate that we will continue to experience increased levels of delinquencies and charge-offs in this portfolio during 2009 based on current economic conditions.
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Income Taxes
“Income tax expense amounted to $54.0 million for the fourth quarter of 2008, compared with an income tax benefit of $4.1 million for the same quarter of 2007. As previously indicated, the variance was primarily due to the establishment of a non-cash valuation allowance on our deferred tax assets, recorded based upon the requirements of SFAS No.109 ‘Accounting for Income Taxes’ (‘SFAS No. 109’). SFAS No. 109 states that a deferred tax asset should be reduced by a valuation allowance if based on the weight of all available factors, it is more likely than not (a likelihood of more than 50%) that some portion or all of the deferred tax asset will not be realized.
“As of December 31, 2008, BankAtlantic had approximately $67.4 million of net deferred tax assets on its balance sheet. A significant amount of BankAtlantic’s deferred tax assets relate to net operating losses and allowances for loan losses recorded in the past two years arising from the impact of the unprecedented economic downturn on BankAtlantic. Due to BankAtlantic’s recent history of losses, the significant ongoing deterioration in economic conditions and other factors, BankAtlantic recorded a full $67.4 million deferred tax asset valuation allowance at December 31, 2008.
“The deferred tax asset valuation allowance is non-cash, does not impact cash flows, liquidity or any ongoing operations at BankAtlantic. Additionally, BankAtlantic’s net operating loss carry forwards have an expiration term of 20 years. Most importantly, this deferred tax asset allowance does not affect the ongoing regulatory capital computations for BankAtlantic. BankAtlantic continues to maintain regulatory capital ratios well in excess of the ‘well-capitalized’ levels, and this valuation allowance has no impact on this well-capitalized status.
“BankAtlantic will evaluate the necessity of the deferred tax asset allowance quarterly, and to the extent realization of a portion or all of the tax asset becomes ‘more-likely-than-not’ based on changes in circumstances as per the SFAS 109 guidance (through improved earnings, changes in tax law or other relevant changes), a reversal of that portion of the deferred tax asset valuation allowance will be made. As an example, if currently proposed legislation is passed that would allow BankAtlantic to take a five-year carry back of net operating losses, that might result in a reversal of some portion of the deferred tax asset valuation allowance into income during the period such legislation became effective.”
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BankAtlantic Bancorp:
Alan B. Levan further commented “At December 31, 2008, BankAtlantic Bancorp had $40.7 million in cash and investments. Securities activities for the fourth quarter of 2008 included an other-than-temporary impairment charge of ($3.4) million related to a sustained deterioration in the market value of an investment. The comparable 2007 quarter included a loss of ($4.0) million related to investment impairments and warrant valuations. Full year securities activities resulted in a loss of ($356,000) in 2008 compared to a gain of $6.1 million in 2007. Income tax expense amounted to ($7.2) million for the fourth quarter 2008, compared with an income tax benefit of $3.7 million for the same quarter of 2007. The variance was primarily due to the fourth quarter 2008 establishment of a $13.9 million valuation allowance on the deferred tax assets at the parent company level. As previously stated, the deferred tax asset valuation allowance is non-cash, does not impact cash flows, liquidity or any ongoing operations at BankAtlantic Bancorp.
Asset Workout Subsidiary— “As previously discussed, during the first quarter of 2008, BankAtlantic Bancorp formed a wholly-owned asset workout subsidiary and purchased certain non-accrual loans from BankAtlantic. These assets are no longer held by BankAtlantic, and any gain or loss associated with these assets will have no impact on BankAtlantic’s operations or capital, but will be included in BankAtlantic Bancorp’s consolidated results. These assets, as with all other assets and liabilities of BankAtlantic Bancorp, should not be combined with those of BankAtlantic when evaluating and comparing metrics for BankAtlantic as the insured financial institution.
“At December 31, 2008, the loans held by the workout subsidiary totaled $81.3 million with specific loan reserves of $11.7 million. During the fourth quarter of 2008, primarily as a result of more current valuations, these loans were written-down by $2.7 million. The breakdown of the non-accrual loans held by the Company’s asset workout subsidiary at December 31, 2008 is as follows:
“Builder land bank loans:Comprised of 4 loans aggregating $22.0 million.
“Land acquisition and development loans:Comprised of 4 loans aggregating $16.8 million.
“Land acquisition, development and construction loans:Comprised of 9 loans aggregating $29.2 million.
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“Other Commercial real estate loans:Comprised of 3 loans aggregating $5.8 million.
“Commercial business loans:Comprised of 3 loans aggregating $5.6 million.
“These loans are carried on BankAtlantic Bancorp’s books at approximately 55% of their original principal balances after charge-offs or specific reserves.
Discontinued Operations — “BankAtlantic Bancorp recorded $10.6 million in discontinued operations net income in the fourth quarter of 2008 related to the contingent earn-out received from the 2007 first quarter sale of Ryan Beck. The final earn-out period concludes February 28, 2009. The full year 2008 net income from discontinued operations was $16.6 million compared to $7.8 million for the full year 2007.
Cash Dividend— “BankAtlantic Bancorp’s Board of Directors recently declared a cash dividend of $0.025 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on January 20, 2009. While given the current economy, there is no assurance that dividends will continue to be declared and paid into the future, this quarter’s dividend declaration marked BankAtlantic Bancorp’s 62nd consecutive quarterly dividend payment.”
Financial Highlights:
All per share and stock price amounts presented below have been restated to reflect the
one-for-five reverse stock split effected by BankAtlantic Bancorp on September 26, 2008.
one-for-five reverse stock split effected by BankAtlantic Bancorp on September 26, 2008.
Fourth Quarter, 2008 Compared to Fourth Quarter, 2007
BankAtlantic Bancorp — consolidated:
• | Loss from continuing operations excluding non-cash goodwill impairment and deferred tax asset valuation allowance of ($37.6) million versus ($9.9) million; fourth quarter of 2008 included goodwill impairment of $48.3 million and a deferred tax asset valuation allowance of $81.3 million |
• | Diluted loss per share from continuing operations excluding non-cash goodwill impairment and deferred tax asset valuation allowance of ($3.35) versus ($0.89) |
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BankAtlantic:
• | Excluding goodwill impairment and deferred tax asset valuation allowance, loss of ($19.2) million versus ($3.4) million; fourth quarter of 2008 included goodwill impairment of $48.3 million and a deferred tax asset valuation allowance of $67.4 million | ||
• | Pre-tax operating earnings of $7.7 million versus $7.8 million; pre-tax operating earnings excludes the impact of provision for loan and tax certificate losses, impairments, debt redemption costs, restructuring and exit activities of ($88.6) million for the 2008 quarter and ($15.3) million for the 2007 quarter | ||
• | Tax equivalent net interest margin of 3.29% versus 3.41% | ||
• | Non-interest income of $31.1 million versus $36.3 million | ||
• | Non-interest expense of $67.9 million versus $75.8 million, a decrease of 10.5%, before the impairment, debt redemption cost, provision for tax certificates, restructuring and exit activities of ($56.8) million in 2008 and ($5.8) million in 2007 |
Full Year 2008 Compared to Full Year 2007
BankAtlantic Bancorp – consolidated:
• | Loss from continuing operations excluding non-cash goodwill impairment and deferred tax asset valuation allowance of ($92.5) million versus ($30.0) million; 2008 included goodwill impairment of $48.3 million and a deferred tax asset valuation allowance of $81.3 million | ||
• | Diluted loss per share from continuing operations excluding non-cash goodwill impairment and deferred tax asset valuation allowance of ($8.24) versus ($2.58) |
BankAtlantic:
• | Excluding goodwill impairment and deferred tax asset valuation allowance, loss of ($52.3) million versus ($19.4) million; 2008 included goodwill impairment of $48.3 million and a deferred tax asset valuation allowance of $67.4 million | ||
• | Pre-tax operating earnings of $65.4 million versus $50.7 million; pre-tax operating earnings excludes the impact of provision for loan and tax certificate losses, impairments, debt redemption costs, restructuring and exit activities of ($202.2) million for 2008 and ($91.5) million for 2007 | ||
• | Non-interest income of $137.3 million versus $143.9 million, a decrease of 4.6% |
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• | Non-interest expense of $265.6 million versus $292.7 million, a decrease of 9.3% before the $66.8 million and $20.7 million of impairment, debt redemption costs, provision for tax certificates, restructuring and exit activities during the 2008 and 2007 periods |
Capital and Credit Highlights:
Capital Ratios (BankAtlantic)
Capital Ratios | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | ||||||||||||||||||||||
Total Risk-Based | 11.58 | % | 11.75 | % | 11.77 | % | 11.83 | % | 11.63 | % | |||||||||||||||||
Tier 1 Risk-Based | 9.75 | % | 9.95 | % | 9.99 | % | 10.04 | % | 9.85 | % | |||||||||||||||||
Core | 6.77 | % | 6.89 | % | 6.82 | % | 6.87 | % | 6.94 | % | |||||||||||||||||
Fourth Quarter Loan Provision & Allowance for Loan Losses:
($ in thousands) | 4Q 2008 | Allowance for Loan Losses | % of Reserves | ||||||||||||||
Loan Provision | at December 31, 2008 | to Total Loans | |||||||||||||||
Commercial Real Estate | $ | 13,968 | $ | 75,850 | 6.21 | % | |||||||||||
Consumer | 11,137 | 32,382 | 4.34 | % | |||||||||||||
Small Business | 2,655 | 8,133 | 2.49 | % | |||||||||||||
Residential | 3,014 | 6,034 | 0.31 | % | |||||||||||||
Commercial Business | 996 | 3,173 | 2.21 | % | |||||||||||||
Total BankAtlantic | $ | 31,770 | $ | 125,572 | 2.87 | % | |||||||||||
Parent-Workout Sub | 6,682 | 11,685 | 14.32 | % | |||||||||||||
Consolidated Total | $ | 38,452 | $ | 137,257 | 3.07 | % | |||||||||||
Net Charge-offs, for the three-months ended:
($ in thousands) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | ||||||||||||||||||||||
Commercial Real Estate | $ | 0 | $ | 4,965 | $ | 14,501 | $ | 40,591 | $ | 3,118 | |||||||||||||||||
Consumer | 9,033 | 7,621 | 7,095 | 4,748 | 4,045 | ||||||||||||||||||||||
Small Business | 1,644 | 1,334 | 345 | 1,135 | 449 | ||||||||||||||||||||||
Purchased Residential | 1,694 | 753 | 761 | 584 | 216 | ||||||||||||||||||||||
CRA Residential | 265 | 249 | 74 | 40 | 39 | ||||||||||||||||||||||
Commercial Business | (3 | ) | (9 | ) | (3 | ) | (26 | ) | (14 | ) | |||||||||||||||||
Total BankAtlantic | $ | 12,633 | $ | 14,913 | $ | 22,773 | $ | 47,072 | $ | 7,853 | |||||||||||||||||
Parent-Workout Sub | 2,698 | 8,290 | 8,184 | na | na | ||||||||||||||||||||||
Consolidated Total | $ | 15,331 | $ | 23,203 | $ | 30,957 | $ | 47,072 | $ | 7,853 | |||||||||||||||||
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Non-accrual loans, at period-end:
($ in thousands) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | ||||||||||||||||||||||
Commercial Real Estate | $ | 161,947 | $ | 56,419 | $ | 54,033 | $ | 35,381 | $ | 159,278 | |||||||||||||||||
Consumer | 6,763 | 5,867 | 4,495 | 4,374 | 3,218 | ||||||||||||||||||||||
Small Business | 4,644 | 3,911 | 1,165 | 893 | 883 | ||||||||||||||||||||||
Purchased Residential | 31,118 | 21,266 | 16,721 | 13,236 | 6,895 | ||||||||||||||||||||||
CRA Residential | 3,616 | 2,279 | 1,487 | 1,906 | 1,783 | ||||||||||||||||||||||
Commercial Business | 0 | 0 | 0 | 0 | 6,534 | ||||||||||||||||||||||
Total BankAtlantic | $ | 208,088 | $ | 89,742 | $ | 77,901 | $ | 55,790 | $ | 178,591 | |||||||||||||||||
Parent-Workout Sub | 79,327 | 82,059 | 90,412 | 101,493 | na | ||||||||||||||||||||||
Consolidated Total | $ | 287,415 | $ | 171,801 | $ | 168,313 | $ | 157,283 | $ | 178,591 | |||||||||||||||||
Delinquencies, excluding non-accrual loans, at period-end(BankAtlantic):
Loan Principal at | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | |||||||||||||||||||||||||
12/31/08 | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||
$1,224,820 | Commercial Real Estate | 1.34 | %* | 0.41 | %* | 0.42 | % | 1.97 | % | 0.00 | % | |||||||||||||||||||
730,718 | Consumer | 1.60 | % | 1.17 | % | 1.54 | % | 1.14 | % | 1.08 | % | |||||||||||||||||||
327,475 | Small Business | 1.31 | % | 0.95 | % | 0.93 | % | 0.49 | % | 0.14 | % | |||||||||||||||||||
1,855,570 | Purchased Residential | 0.99 | % | 0.73 | % | 0.44 | % | 0.52 | % | 0.43 | % | |||||||||||||||||||
79,438 | CRA Residential | 2.35 | % | 2.57 | % | 1.55 | % | 0.93 | % | 2.54 | % | |||||||||||||||||||
146,930 | Commercial Business | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 1.03 | % | |||||||||||||||||||
$4,364,951 | Total BankAtlantic | 1.20 | %* | 0.73 | %* | 0.65 | % | 0.98 | % | 0.43 | % | |||||||||||||||||||
* | Excludes $58.5 million and $26 million of Commercial Real Estate loans at December 31, 2008 and September 30, 2008, respectively, which had matured and had been approved for renewal or forbearance but were not fully documented at period end. Including these loans, Commercial Real Estate delinquencies were 6.12% and 2.52% and Total BankAtlantic delinquencies would have been 2.54% and 1.31% at December 31, 2008 and September 30, 2008, respectively. |
14
Financial data is provided in the supplemental financial tables available at www.BankAtlanticBancorp.com for both BankAtlantic (bank only) as well as the Parent-BankAtlantic Bancorp.
• | 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. |
Additionally, BankAtlantic financial information is provided quarterly to the OTS through Thrift Financial Reports, available to the public through the OTS and FDIC websites.
Copies of BankAtlantic Bancorp’s fourth quarter and full year 2008 financial results press release and financial summary, and the Supplemental Financials will also be made available upon request via fax, email, or postal service mail. To request a copy, contact BankAtlantic Bancorp’s Investor Relations department using the contact information listed below.
BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Tuesday, February 10, 2009, at 8:30 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 number81427295.
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 25, 2009. 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 is81427295.
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=54715. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Wednesday, February 25, 2009.
About BankAtlantic Bancorp:
BankAtlantic Bancorp (NYSE: BBX) is a bank holding company and the parent company of BankAtlantic.
15
About BankAtlantic:
BankAtlantic, “Florida’s Most Convenient Bank”, with nearly $6.0 billion in assets and more than 100 stores is one of the largest financial institutions headquartered in Florida. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, Free Online Banking & Bill Pay, a 7-Day Customer Service Center, Change Exchange coin counters and free retail and business checking with a free gift. BankAtlantic has been serving communities throughout Florida since 1952 and currently operates more than 250 conveniently located ATMs. The bank has supported thousands of charitable, civic and professional organizations since the inception of the BankAtlantic Foundation in 1994.
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
Donna Rouzeau,
Assistant Vice President, Investor Relations & Corporate Communications
Email: CorpComm@BankAtlanticBancorp.com
Leo Hinkley,
Senior Vice President, Investor Relations Officer
Email: InvestorRelations@BankAtlanticBancorp.com
Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Public Relations:
Hattie Hess, Vice President, Public Relations
Telephone: 954-940-6383, Fax: 954-940-6310
Email: hhess@BankAtlantic.com
Public Relations for BankAtlantic:
Rbb Public Relations
Sandra Fine
Telephone: 305-567-0535, Fax: 305-448-5027
Email: sandra.fine@rbbpr.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:
Rbb Public Relations
Sandra Fine
Telephone: 305-567-0535, Fax: 305-448-5027
Email: sandra.fine@rbbpr.com
# # #
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. Actual
16
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, including the impact of a continued and deepening recession on our business generally, our well capitalized regulatory capital ratios, as well as the ability of our borrowers to service their obligations and of our customers to maintain account balances; 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 (including those held in the asset workout subsidiary of the Company) of a sustained downturn in the economy and 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 bank loans, Land acquisition and development loans and Land acquisition, development and construction loans) as well as other Commercial real estate loans, and Commercial business loans; and conditions specifically in those market sectors; the risks of additional charge-offs, impairments and required increases in our allowance for loan losses; BankAtlantic Bancorp’s ability to successfully manage the loans held by the newly formed asset workout subsidiary, and the risk that we will continue to realize losses in that loan portfolio; 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 financial and credit 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 initiatives not resulting in continued growth of core deposits or increasing average balances of new deposit accounts or producing results which do not justify their costs; the success of our expense reduction initiatives and the ability to achieve additional cost savings; and the impact of periodic valuation testing of goodwill, deferred tax assets and other assets. Past performance, actual or estimated new account openings and growth may not be indicative of future results. 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.
17
BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)
Summary of Selected Financial Data (unaudited)
For the | ||||||||||||||||||||||||||||||||
For the Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | ||||||||||||||||||||||||||
Earnings (in thousands): | ||||||||||||||||||||||||||||||||
Net loss from continuing operations | $ | (167,177 | ) | (10,982 | ) | (19,363 | ) | (24,564 | ) | (9,926 | ) | (222,086 | ) | (30,012 | ) | |||||||||||||||||
Net loss | $ | (156,612 | ) | (6,063 | ) | (19,363 | ) | (23,443 | ) | (9,926 | ) | (205,481 | ) | (22,200 | ) | |||||||||||||||||
Average Common Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 11,231 | 11,228 | 11,223 | 11,219 | 11,211 | 11,226 | 11,632 | |||||||||||||||||||||||||
Diluted | 11,231 | 11,228 | 11,223 | 11,219 | 11,211 | 11,226 | 11,632 | |||||||||||||||||||||||||
Key Performance Ratios Basic loss per share from continuing operations | $ | (14.88 | ) | (0.98 | ) | (1.73 | ) | (2.19 | ) | (0.89 | ) | (19.78 | ) | (2.58 | ) | |||||||||||||||||
Diluted loss per share from continuing operations | $ | (14.88 | ) | (0.98 | ) | (1.73 | ) | (2.19 | ) | (0.89 | ) | (19.78 | ) | (2.58 | ) | |||||||||||||||||
Basic loss per share | $ | (13.94 | ) | (0.54 | ) | (1.73 | ) | (2.09 | ) | (0.89 | ) | (18.30 | ) | (1.91 | ) | |||||||||||||||||
Diluted loss per share | $ | (13.94 | ) | (0.54 | ) | (1.73 | ) | (2.09 | ) | (0.89 | ) | (18.30 | ) | (1.91 | ) | |||||||||||||||||
Return on average tangible assets from continuing operations | (note 1) | % | (11.15 | ) | (0.69 | ) | (1.26 | ) | (1.57 | ) | (0.63 | ) | (3.59 | ) | (0.47 | ) | ||||||||||||||||
Return on average tangible equity from continuing operations | (note 1) | % | (195.32 | ) | (12.76 | ) | (21.63 | ) | (25.73 | ) | (9.96 | ) | (62.25 | ) | (6.95 | ) | ||||||||||||||||
Average Balance Sheet Data (in millions): | ||||||||||||||||||||||||||||||||
Assets | $ | 6,073 | 6,397 | 6,235 | 6,350 | 6,354 | 6,264 | 6,420 | ||||||||||||||||||||||||
Tangible assets | (note 1) | $ | 5,999 | 6,322 | 6,160 | 6,274 | 6,278 | 6,189 | 6,342 | |||||||||||||||||||||||
Loans | $ | 4,482 | 4,544 | 4,571 | 4,642 | 4,654 | 4,560 | 4,669 | ||||||||||||||||||||||||
Investments | $ | 1,054 | 1,347 | 1,138 | 1,191 | 1,172 | 1,182 | 1,207 | ||||||||||||||||||||||||
Deposits and escrows | $ | 3,917 | 3,935 | 3,907 | 3,949 | 3,960 | 3,927 | 3,974 | ||||||||||||||||||||||||
Stockholders’ equity | $ | 410 | 415 | 435 | 459 | 471 | 430 | 508 | ||||||||||||||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 342 | 344 | 358 | 382 | 399 | 357 | 432 |
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) | 2008 | 2007 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 158,957 | 124,574 | |||||
Securities available for sale (at fair value) | 701,845 | 925,363 | ||||||
Investment securities (approximate fair value: $2,503 and $44,688) | 2,036 | 39,617 | ||||||
Financial instruments accounted for at fair value | — | 10,661 | ||||||
Tax certificates net of allowance of $6,064 and $3,289 | 213,534 | 188,401 | ||||||
Loans receivable, net of allowance for loan losses of $137,257 and $94,020 | 4,326,651 | 4,524,188 | ||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 54,607 | 74,003 | ||||||
Real estate held for development and sale | 18,383 | 33,741 | ||||||
Real estate owned | 19,045 | 17,216 | ||||||
Office properties and equipment, net | 216,978 | 243,863 | ||||||
Goodwill and other intangible assets | 26,244 | 75,886 | ||||||
Other assets | 76,277 | 121,304 | ||||||
Total assets | $ | 5,814,557 | 6,378,817 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | ||||||||
Demand | $ | 741,691 | 824,211 | |||||
NOW | 992,762 | 900,233 | ||||||
Savings | 419,494 | 580,497 | ||||||
Money market | 427,762 | 624,390 | ||||||
Certificates of deposit | 1,344,659 | 1,024,074 | ||||||
Total deposits | 3,926,368 | 3,953,405 | ||||||
Advances from FHLB | 967,028 | 1,397,044 | ||||||
Securities sold under agreements to repurchase | 46,084 | 58,265 | ||||||
Federal funds purchased and other short term borrowings | 238,339 | 108,975 | ||||||
Subordinated debentures and bonds payable | 22,864 | 26,654 | ||||||
Junior subordinated debentures | 294,195 | 294,195 | ||||||
Other liabilities | 78,553 | 80,958 | ||||||
Total liabilities | 5,573,431 | 5,919,496 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 112 | 112 | ||||||
Additional paid-in capital | 218,975 | 217,141 | ||||||
Retained earnings | 29,825 | 236,150 | ||||||
Total stockholders’ equity before accumulated other comprehensive (loss) income | 248,912 | 453,403 | ||||||
Accumulated other comprehensive (loss) income | (7,786 | ) | 5,918 | |||||
Total stockholders’ equity | 241,126 | 459,321 | ||||||
Total liabilities and stockholders’ equity | $ | 5,814,557 | 6,378,817 | |||||
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
For the | ||||||||||||||||||||||||||||||||
For the Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
(in thousands) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | |||||||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 56,660 | 60,843 | 61,583 | 68,136 | 74,415 | 247,222 | 313,998 | ||||||||||||||||||||||||
Interest on securities available for sale | 9,434 | 9,966 | 10,553 | 10,490 | 8,075 | 40,443 | 22,099 | |||||||||||||||||||||||||
Interest on tax exempt securities | — | — | — | 14 | 1,266 | 14 | 12,700 | |||||||||||||||||||||||||
Interest on tax certificates | 4,769 | 8,893 | 4,926 | 3,565 | 3,939 | 22,153 | 16,305 | |||||||||||||||||||||||||
Interest and dividends on taxable investments | 250 | 1,482 | 1,425 | 1,527 | 1,727 | 4,684 | 6,531 | |||||||||||||||||||||||||
Total interest income | 71,113 | 81,184 | 78,487 | 83,732 | 89,422 | 314,516 | 371,633 | |||||||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Interest on deposits | 15,610 | 15,552 | 14,508 | 18,593 | 21,443 | 64,263 | 84,476 | |||||||||||||||||||||||||
Interest on advances from FHLB | 10,162 | 13,401 | 12,433 | 14,946 | 17,443 | 50,942 | 73,256 | |||||||||||||||||||||||||
Interest on short-term borrowed funds | 151 | 330 | 725 | 1,279 | 2,068 | 2,485 | 9,573 | |||||||||||||||||||||||||
Interest on long-term debt | 6,008 | 5,484 | 5,220 | 6,283 | 6,650 | 22,995 | 25,552 | |||||||||||||||||||||||||
Total interest expense | 31,931 | 34,767 | 32,886 | 41,101 | 47,604 | 140,685 | 192,857 | |||||||||||||||||||||||||
NET INTEREST INCOME | 39,182 | 46,417 | 45,601 | 42,631 | 41,818 | 173,831 | 178,776 | |||||||||||||||||||||||||
Provision for loan losses | 38,452 | 31,214 | 47,247 | 42,888 | 9,515 | 159,801 | 70,842 | |||||||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | 730 | 15,203 | (1,646 | ) | (257 | ) | 32,303 | 14,030 | 107,934 | |||||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Service charges on deposits | 21,501 | 23,924 | 24,466 | 24,014 | 26,342 | 93,905 | 102,639 | |||||||||||||||||||||||||
Other service charges and fees | 7,096 | 7,309 | 7,121 | 7,433 | 7,171 | 28,959 | 28,950 | |||||||||||||||||||||||||
Securities activities, net | (3,320 | ) | 1,132 | 8,965 | (4,738 | ) | (3,163 | ) | 2,039 | 8,412 | ||||||||||||||||||||||
Gain on sales of loans | 18 | 42 | 129 | 76 | 68 | 265 | 494 | |||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 282 | 265 | 287 | 1,275 | 337 | 2,109 | 2,500 | |||||||||||||||||||||||||
Other | 2,276 | 2,524 | 2,908 | 2,579 | 1,690 | 10,287 | 8,308 | |||||||||||||||||||||||||
Total non-interest income | 27,853 | 35,196 | 43,876 | 30,639 | 32,445 | 137,564 | 151,303 | |||||||||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Employee compensation and benefits | 31,724 | 31,679 | 33,181 | 35,155 | 37,922 | 131,739 | 151,178 | |||||||||||||||||||||||||
Occupancy and equipment | 16,228 | 15,996 | 16,172 | 16,386 | 17,026 | 64,782 | 65,851 | |||||||||||||||||||||||||
Advertising and business promotion | 4,348 | 3,430 | 3,662 | 4,895 | 5,659 | 16,335 | 20,002 | |||||||||||||||||||||||||
Professional fees | 4,622 | 3,160 | 2,219 | 2,760 | 3,067 | 12,761 | 8,690 | |||||||||||||||||||||||||
Check losses | 1,854 | 2,094 | 2,101 | 2,718 | 3,547 | 8,767 | 11,476 | |||||||||||||||||||||||||
Supplies and postage | 1,294 | 1,080 | 1,282 | 1,006 | 1,502 | 4,662 | 6,146 | |||||||||||||||||||||||||
Telecommunication | 866 | 753 | 1,331 | 1,502 | 1,348 | 4,452 | 5,571 | |||||||||||||||||||||||||
Cost associated with debt redemption | 1,236 | — | 1 | 1 | — | 1,238 | — | |||||||||||||||||||||||||
Provision for tax certificates | 3,641 | 2,838 | 924 | (117 | ) | 75 | 7,286 | 300 | ||||||||||||||||||||||||
Impairment of goodwill | 48,284 | — | — | — | — | 48,284 | — | |||||||||||||||||||||||||
Impairment, restructuring and exit activities | 3,620 | 522 | 5,952 | (65 | ) | 5,681 | 10,029 | 20,361 | ||||||||||||||||||||||||
Other | 11,052 | 7,098 | 6,914 | 5,792 | 6,645 | 30,856 | 27,246 | |||||||||||||||||||||||||
Total non-interest expense | 128,769 | 68,650 | 73,739 | 70,033 | 82,472 | 341,191 | 316,821 | |||||||||||||||||||||||||
Loss from continuing operations before income taxes | (100,186 | ) | (18,251 | ) | (31,509 | ) | (39,651 | ) | (17,724 | ) | (189,597 | ) | (57,584 | ) | ||||||||||||||||||
Provision (benefit) for income taxes | 66,991 | (7,269 | ) | (12,146 | ) | (15,087 | ) | (7,798 | ) | 32,489 | (27,572 | ) | ||||||||||||||||||||
Loss from continuing operations | (167,177 | ) | (10,982 | ) | (19,363 | ) | (24,564 | ) | (9,926 | ) | (222,086 | ) | (30,012 | ) | ||||||||||||||||||
Discontinued operations | 10,565 | 4,919 | — | 1,121 | — | 16,605 | 7,812 | |||||||||||||||||||||||||
Net loss | $ | (156,612 | ) | (6,063 | ) | (19,363 | ) | (23,443 | ) | (9,926 | ) | (205,481 | ) | (22,200 | ) | |||||||||||||||||
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) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,956,429 | 2,010,749 | 2,086,519 | 2,162,421 | 2,196,552 | ||||||||||||||||||
Commercial real estate | 1,309,670 | 1,320,678 | 1,292,627 | 1,307,236 | 1,317,578 | |||||||||||||||||||
Consumer | 754,709 | 755,050 | 743,123 | 722,327 | 697,764 | |||||||||||||||||||
Commercial business | 138,598 | 135,909 | 129,332 | 131,770 | 132,677 | |||||||||||||||||||
Small business | 322,417 | 322,048 | 319,096 | 318,588 | 309,322 | |||||||||||||||||||
Total Loans | 4,481,823 | 4,544,434 | 4,570,697 | 4,642,342 | 4,653,893 | |||||||||||||||||||
Investments — taxable | 1,054,126 | 1,346,852 | 1,137,831 | 1,186,441 | 1,036,382 | |||||||||||||||||||
Investments — tax exempt | — | — | — | 4,314 | 135,961 | |||||||||||||||||||
Total interest earning assets | 5,535,949 | 5,891,286 | 5,708,528 | 5,833,097 | 5,826,236 | |||||||||||||||||||
Goodwill and core deposit intangibles | 74,166 | 75,029 | 75,401 | 75,718 | 76,068 | |||||||||||||||||||
Other non-interest earning assets | 462,813 | 430,683 | 450,999 | 440,961 | 451,397 | |||||||||||||||||||
Total assets | $ | 6,072,928 | 6,396,998 | 6,234,928 | 6,349,776 | 6,353,701 | ||||||||||||||||||
Tangible assets | (note 1) | $ | 5,998,762 | 6,321,969 | 6,159,527 | 6,274,058 | 6,277,633 | |||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand deposits | $ | 770,152 | 812,505 | 878,864 | 854,534 | 885,006 | ||||||||||||||||||
Savings | 425,256 | 471,270 | 552,094 | 566,448 | 589,966 | |||||||||||||||||||
NOW | 958,389 | 955,392 | 941,964 | 926,381 | 830,898 | |||||||||||||||||||
Money market | 461,253 | 557,343 | 617,013 | 609,062 | 638,041 | |||||||||||||||||||
Certificates of deposit | 1,301,953 | 1,138,615 | 917,133 | 992,078 | 1,015,940 | |||||||||||||||||||
Total deposits | 3,917,003 | 3,935,125 | 3,907,068 | 3,948,503 | 3,959,851 | |||||||||||||||||||
Short-term borrowed funds | 110,080 | 79,503 | 148,407 | 163,124 | 182,134 | |||||||||||||||||||
FHLB advances | 1,258,944 | 1,598,111 | 1,389,835 | 1,423,746 | 1,368,242 | |||||||||||||||||||
Long-term debt | 319,400 | 320,283 | 320,469 | 320,650 | 321,885 | |||||||||||||||||||
Total borrowings | 1,688,424 | 1,997,897 | 1,858,711 | 1,907,520 | 1,872,261 | |||||||||||||||||||
Other liabilities | 57,852 | 48,981 | 34,023 | 34,673 | 50,554 | |||||||||||||||||||
Total liabilities | 5,663,279 | 5,982,003 | 5,799,802 | 5,890,696 | 5,882,666 | |||||||||||||||||||
Stockholders’ equity | 409,649 | 414,995 | 435,126 | 459,080 | 471,035 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,072,928 | 6,396,998 | 6,234,928 | 6,349,776 | 6,353,701 | ||||||||||||||||||
Other comprehensive income (loss) in stockholders’ equity | (6,874 | ) | (4,184 | ) | 1,679 | 1,496 | (3,562 | ) | ||||||||||||||||
Tangible stockholders’ equity | (note 1) | $ | 342,357 | 344,150 | 358,046 | 381,866 | 398,529 | |||||||||||||||||
Net Interest Margin | 2.85 | % | 3.16 | % | 3.18 | % | 2.91 | % | 2.95 | % | ||||||||||||||
Period End | ||||||||||||||||||||||||
Total loans, net | $ | 4,326,651 | 4,405,098 | 4,442,529 | 4,483,305 | 4,524,188 | ||||||||||||||||||
Total assets | 5,814,557 | 6,227,884 | 6,514,975 | 6,390,690 | 6,378,817 | |||||||||||||||||||
Total stockholders’ equity | 241,126 | 400,233 | 408,206 | 433,896 | 459,321 | |||||||||||||||||||
Class A common shares outstanding | 10,258,057 | 10,254,570 | 10,251,382 | 10,245,744 | 10,239,235 | |||||||||||||||||||
Class B common shares outstanding | 975,225 | 975,225 | 975,225 | 975,225 | 975,225 | |||||||||||||||||||
Closing stock price | 5.80 | 8.20 | 8.80 | 19.55 | 20.50 | |||||||||||||||||||
High stock price for the quarter | 11.82 | 15.00 | 20.75 | 29.00 | 48.00 | |||||||||||||||||||
Low stock price for the quarter | 2.25 | 4.05 | 7.80 | 16.30 | 14.45 | |||||||||||||||||||
Book value per share | 21.47 | 35.64 | 36.36 | 38.67 | 40.96 | |||||||||||||||||||
Tangible book value per share | 19.82 | 29.47 | 30.02 | 31.67 | 33.66 |
Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
Condensed Statements of Operations (Unaudited)
For the | ||||||||||||||||||||||||||||
For the Three Months Ended | Years Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | |||||||||||||||||||||
Net interest income | $ | 44,525 | 51,195 | 49,923 | 48,005 | 47,291 | 193,648 | 199,510 | ||||||||||||||||||||
Provision for loan losses | 31,770 | 22,924 | 37,801 | 42,888 | 9,515 | 135,383 | 70,842 | |||||||||||||||||||||
Net interest income after provision for loan losses | 12,755 | 28,271 | 12,122 | 5,117 | 37,776 | 58,265 | 128,668 | |||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Service charges on deposits | 21,501 | 23,924 | 24,466 | 24,014 | 26,342 | 93,905 | 102,639 | |||||||||||||||||||||
Other service charges and fees | 7,096 | 7,309 | 7,121 | 7,433 | 7,171 | 28,959 | 28,950 | |||||||||||||||||||||
Securities activities, net | 93 | 1 | 1,960 | 341 | 861 | 2,395 | 2,307 | |||||||||||||||||||||
Loss from real estate operations | — | — | (281 | ) | — | — | (281 | ) | (12 | ) | ||||||||||||||||||
Gain on sales of loans | 18 | 42 | 129 | 76 | 68 | 265 | 494 | |||||||||||||||||||||
Income from unconsolidated subsidiaries | 127 | 122 | 147 | 1,113 | 163 | 1,509 | 1,219 | |||||||||||||||||||||
Other non-interest income | 2,274 | 2,520 | 3,186 | 2,576 | 1,685 | 10,556 | 8,285 | |||||||||||||||||||||
Total non-interest income | 31,109 | 33,918 | 36,728 | 35,553 | 36,290 | 137,308 | 143,882 | |||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 30,956 | 30,353 | 32,118 | 34,243 | 37,221 | 127,670 | 148,757 | |||||||||||||||||||||
Occupancy and equipment | 16,227 | 15,993 | 16,171 | 16,383 | 17,023 | 64,774 | 65,839 | |||||||||||||||||||||
Advertising and business promotion | 4,243 | 3,388 | 3,564 | 4,861 | 5,596 | 16,056 | 19,684 | |||||||||||||||||||||
Professional fees | 4,019 | 2,696 | 2,004 | 2,260 | 2,969 | 10,979 | 8,266 | |||||||||||||||||||||
Check losses | 1,854 | 2,094 | 2,101 | 2,718 | 3,547 | 8,767 | 11,476 | |||||||||||||||||||||
Supplies and postage | 1,220 | 1,076 | 1,281 | 1,003 | 1,441 | 4,580 | 6,078 | |||||||||||||||||||||
Telecommunication | 860 | 748 | 1,326 | 1,496 | 1,342 | 4,430 | 5,552 | |||||||||||||||||||||
Cost associated with debt redemption | 1,236 | — | 1 | 1 | — | 1,238 | — | |||||||||||||||||||||
Provision for tax certificates | 3,641 | 2,838 | 924 | (117 | ) | 75 | 7,286 | 300 | ||||||||||||||||||||
Impairment of goodwill | 48,284 | — | — | — | — | 48,284 | — | |||||||||||||||||||||
Impairment, restructuring and exit activities | 3,620 | 522 | 5,952 | (65 | ) | 5,681 | 10,029 | 20,361 | ||||||||||||||||||||
Other | 8,513 | 7,098 | 6,895 | 5,843 | 6,686 | 28,349 | 27,055 | |||||||||||||||||||||
Total non-interest expense | 124,673 | 66,806 | 72,337 | 68,626 | 81,581 | 332,442 | 313,368 | |||||||||||||||||||||
Loss from bank operations business segment before income taxes | (80,809 | ) | (4,617 | ) | (23,487 | ) | (27,956 | ) | (7,515 | ) | (136,869 | ) | (40,818 | ) | ||||||||||||||
Provision (benefit) for income taxes | 54,022 | (2,525 | ) | (9,428 | ) | (10,975 | ) | (4,143 | ) | 31,094 | (21,378 | ) | ||||||||||||||||
Net loss from bank operations business segment | $ | (134,831 | ) | (2,092 | ) | (14,059 | ) | (16,981 | ) | (3,372 | ) | (167,963 | ) | (19,440 | ) | |||||||||||||
Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
Condensed Statements of Condition and Statistics (Unaudited)
For the | ||||||||||||||||||||||||||||
(in thousands except percentages | For the Three Months Ended | Years Ended | ||||||||||||||||||||||||||
and per share data) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | |||||||||||||||||||||
Statistics: | ||||||||||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||||||||
Average earning assets | $ | 5,436,572 | 5,770,265 | 5,569,690 | 5,669,461 | 5,653,913 | 5,611,453 | 5,690,404 | ||||||||||||||||||||
Average interest bearing liabilities | $ | 4,571,084 | 4,839,138 | 4,610,344 | 4,712,913 | 4,656,897 | 4,683,489 | 4,629,819 | ||||||||||||||||||||
Average tangible assets | $ | 5,881,742 | 6,187,300 | 6,002,728 | 6,085,957 | 6,080,693 | 6,039,405 | 6,123,978 | ||||||||||||||||||||
Average tangible equity | $ | 492,366 | 486,523 | 466,141 | 467,952 | 481,495 | 478,304 | 499,158 | ||||||||||||||||||||
Borrowings to deposits and borrowings | % | 24.89 | 29.53 | 31.61 | 28.74 | 28.74 | 24.89 | 28.74 | ||||||||||||||||||||
Tax equivalent: | ||||||||||||||||||||||||||||
Yield on earning assets | % | 5.22 | 5.61 | 5.61 | 5.88 | 6.33 | 5.58 | 6.61 | ||||||||||||||||||||
Cost of interest-bearing liabilities | % | 2.30 | 2.45 | 2.46 | 3.02 | 3.54 | 2.55 | 3.67 | ||||||||||||||||||||
Interest spread | % | 2.92 | 3.16 | 3.15 | 2.86 | 2.79 | 3.03 | 2.94 | ||||||||||||||||||||
Net interest margin | % | 3.29 | 3.56 | 3.58 | 3.37 | 3.41 | 3.45 | 3.62 | ||||||||||||||||||||
Performance: | ||||||||||||||||||||||||||||
Efficiency ratio | % | 164.84 | 78.49 | 83.48 | 82.13 | 97.61 | 100.45 | 91.26 | ||||||||||||||||||||
Operating Efficiency ratio (1) | % | 89.76 | 74.54 | 75.54 | 82.35 | 90.72 | 80.25 | 85.24 | ||||||||||||||||||||
Return on average tangible assets | % | (9.17 | ) | (0.14 | ) | (0.94 | ) | (1.12 | ) | (0.22 | ) | (2.78 | ) | (0.32 | ) | |||||||||||||
Return on average tangible equity | % | (109.54 | ) | (1.72 | ) | (12.06 | ) | (14.52 | ) | (2.80 | ) | (35.12 | ) | (3.89 | ) | |||||||||||||
Tangible capital to tangible assets | 6.80 | % | 7.89 | % | 7.54 | % | 7.56 | % | 7.55 | % | ||||||||||||||||||
Earning assets repricing at period end: | ||||||||||||||||||||||||||||
Percent of earning assets that have fixed rates | % | 49 | 53 | 52 | 53 | 54 | ||||||||||||||||||||||
Percent of earning assets that have variable rates | % | 51 | 47 | 48 | 47 | 46 | ||||||||||||||||||||||
One year Gap | % | 3 | (2 | ) | 1 | 3 | (3 | ) | ||||||||||||||||||||
Regulatory Capital Ratios at period end | ||||||||||||||||||||||||||||
Total risk-based capital | % | 11.58 | 11.75 | 11.77 | 11.83 | 11.63 | ||||||||||||||||||||||
Tier I risk-based capital | % | 9.75 | 9.95 | 9.99 | 10.04 | 9.85 | ||||||||||||||||||||||
Core capital | % | 6.77 | 6.89 | 6.82 | 6.87 | 6.94 |
(1) | Operating efficiency ratio is calculated excluding cost associated with debt redemption, provision for tax certificates, impairment of goodwill, impairment, restructuring and exit activities. |
Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
Condensed Statements of Financial Condition (Unaudited)
As of | ||||||||||||||||||||
(in thousands) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans receivable, net | $ | 4,256,741 | 4,328,467 | 4,357,541 | 4,388,334 | 4,524,188 | ||||||||||||||
Investment securities | 268,141 | 371,181 | 501,741 | 237,031 | 262,404 | |||||||||||||||
Available for sale securities | 700,250 | 731,279 | 755,651 | 790,570 | 789,917 | |||||||||||||||
Goodwill | 22,205 | 70,489 | 70,489 | 70,489 | 70,489 | |||||||||||||||
Core deposit intangible asset | 4,039 | 4,375 | 4,711 | 5,047 | 5,397 | |||||||||||||||
Other assets | 462,314 | 607,188 | 679,015 | 720,485 | 509,567 | |||||||||||||||
Total assets | $ | 5,713,690 | 6,112,979 | 6,369,148 | 6,211,956 | 6,161,962 | ||||||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||
Deposits Demand | $ | 741,691 | 767,179 | 891,142 | 912,862 | 824,211 | ||||||||||||||
NOW | 992,762 | 938,366 | 939,714 | 928,275 | 900,233 | |||||||||||||||
Savings | 419,494 | 432,246 | 526,303 | 571,456 | 580,497 | |||||||||||||||
Money market | 427,762 | 494,505 | 621,899 | 618,045 | 624,390 | |||||||||||||||
Certificates of deposit | 1,344,659 | 1,235,936 | 955,921 | 964,976 | 1,024,074 | |||||||||||||||
Total deposits | 3,926,368 | 3,868,232 | 3,934,979 | 3,995,614 | 3,953,405 | |||||||||||||||
Advances from Federal Home Loan Bank | 967,028 | 1,468,032 | 1,657,036 | 1,477,040 | 1,397,044 | |||||||||||||||
Short term borrowings | 311,074 | 127,041 | 135,200 | 108,009 | 170,433 | |||||||||||||||
Long term debt | 22,864 | 26,098 | 26,287 | 26,467 | 26,654 | |||||||||||||||
Other liabilities | 73,462 | 72,552 | 65,655 | 65,351 | 79,147 | |||||||||||||||
Total liabilities | 5,300,796 | 5,561,955 | 5,819,157 | 5,672,481 | 5,626,683 | |||||||||||||||
Stockholder’s equity | 412,894 | 551,024 | 549,991 | 539,475 | 535,279 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,713,690 | 6,112,979 | 6,369,148 | 6,211,956 | 6,161,962 | ||||||||||||||
Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Three Months Ended | ||||||||||||||||||||||||
December 31, 2008 | December 31, 2007 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 1,956,429 | 26,295 | 5.38 | % | $ | 2,196,552 | 30,175 | 5.49 | % | ||||||||||||||
Commercial real estate | 1,227,137 | 15,480 | 5.05 | 1,317,578 | 23,273 | 7.07 | ||||||||||||||||||
Consumer | 754,709 | 7,171 | 3.80 | 697,764 | 12,006 | 6.88 | ||||||||||||||||||
Commercial business | 137,062 | 2,339 | 6.83 | 132,677 | 2,875 | 8.67 | ||||||||||||||||||
Small business | 322,417 | 5,289 | 6.56 | 309,322 | 6,086 | 7.87 | ||||||||||||||||||
Total loans | 4,397,754 | 56,574 | 5.15 | 4,653,893 | 74,415 | 6.40 | ||||||||||||||||||
Investments — tax exempt | — | — | — | 130,850 | 1,860 | (1) | 5.69 | |||||||||||||||||
Investments — taxable | 1,038,818 | 14,327 | 5.52 | 869,170 | 13,262 | 6.10 | ||||||||||||||||||
Total interest earning assets | 5,436,572 | 70,901 | 5.22 | % | 5,653,913 | 89,537 | 6.33 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 74,166 | 76,068 | ||||||||||||||||||||||
Other non-interest earning assets | 445,170 | 426,780 | ||||||||||||||||||||||
Total Assets | $ | 5,955,908 | $ | 6,156,761 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 425,256 | 729 | 0.68 | % | $ | 589,967 | 2,946 | 1.98 | % | ||||||||||||||
NOW | 958,389 | 1,954 | 0.81 | 830,898 | 2,533 | 1.21 | ||||||||||||||||||
Money market | 461,253 | 1,319 | 1.14 | 638,041 | 4,274 | 2.66 | ||||||||||||||||||
Certificates of deposit | 1,301,953 | 11,607 | 3.55 | 1,015,940 | 11,690 | 4.57 | ||||||||||||||||||
Total interest bearing deposits | 3,146,851 | 15,609 | 1.97 | 3,074,846 | 21,443 | 2.77 | ||||||||||||||||||
Short-term borrowed funds | 140,083 | 209 | 0.59 | 186,118 | 2,108 | 4.49 | ||||||||||||||||||
Advances from FHLB | 1,258,944 | 10,162 | 3.21 | 1,368,242 | 17,443 | 5.06 | ||||||||||||||||||
Long-term debt | 25,206 | 396 | 6.25 | 27,691 | 601 | 8.61 | ||||||||||||||||||
Total interest bearing liabilities | 4,571,084 | 26,376 | 2.30 | 4,656,897 | 41,595 | 3.54 | ||||||||||||||||||
Demand deposits | 770,059 | 885,398 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 54,383 | 61,451 | ||||||||||||||||||||||
Total Liabilities | 5,395,526 | 5,603,746 | ||||||||||||||||||||||
Stockholder’s equity | 560,382 | 553,015 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 5,955,908 | $ | 6,156,761 | ||||||||||||||||||||
Net tax equivalent interest income/ net interest spread | 44,525 | 2.92 | % | 47,942 | 2.79 | % | ||||||||||||||||||
Tax equivalent adjustment | — | (651 | ) | |||||||||||||||||||||
Net interest income | 44,525 | 47,291 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 5.22 | % | 6.33 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 1.93 | 2.92 | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 3.29 | % | 3.41 | % | ||||||||||||||||||||
(1) | The tax equivalent basis is computed using a 35% tax rate. |
Bank Operations
Average Balance Sheet — Yield / Rate Analysis
Average Balance Sheet — Yield / Rate Analysis
For the Years Ended | ||||||||||||||||||||||||
December 31, 2008 | December 31, 2007 | |||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Residential real estate | $ | 2,053,645 | 111,691 | 5.44 | % | $ | 2,209,832 | 120,768 | 5.47 | % | ||||||||||||||
Commercial real estate | 1,238,307 | 69,642 | 5.62 | 1,367,095 | 108,931 | 7.97 | ||||||||||||||||||
Consumer | 743,863 | 33,950 | 4.56 | 650,764 | 47,625 | 7.32 | ||||||||||||||||||
Commercial business | 132,565 | 9,516 | 7.18 | 142,455 | 12,720 | 8.93 | ||||||||||||||||||
Small business | 320,853 | 22,162 | 6.91 | 298,774 | 23,954 | 8.02 | ||||||||||||||||||
Total loans | 4,489,233 | 246,961 | 5.50 | 4,668,920 | 313,998 | 6.73 | ||||||||||||||||||
Investments — tax exempt | — | — | — | 328,583 | 19,272 | (1) | 5.87 | |||||||||||||||||
Investments — taxable | 1,122,220 | 66,324 | 5.91 | 692,901 | 43,044 | 6.21 | ||||||||||||||||||
Total interest earning assets | 5,611,453 | 313,285 | 5.58 | % | 5,690,404 | 376,314 | 6.61 | % | ||||||||||||||||
Goodwill and core deposit intangibles | 75,076 | 76,599 | ||||||||||||||||||||||
Other non-interest earning assets | 427,952 | �� | 433,574 | |||||||||||||||||||||
Total Assets | $ | 6,114,481 | $ | 6,200,577 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | $ | 503,464 | 4,994 | 0.99 | % | $ | 584,542 | 12,559 | 2.15 | % | ||||||||||||||
NOW | 945,594 | 8,791 | 0.93 | 794,258 | 8,149 | 1.03 | ||||||||||||||||||
Money market | 560,885 | 8,993 | 1.60 | 656,702 | 17,882 | 2.72 | ||||||||||||||||||
Certificates of deposit | 1,088,170 | 41,485 | 3.81 | 992,043 | 45,886 | 4.63 | ||||||||||||||||||
Total deposits | 3,098,113 | 64,263 | 2.07 | 3,027,545 | 84,476 | 2.79 | ||||||||||||||||||
Short-term borrowed funds | 141,654 | 2,699 | 1.91 | 194,222 | 9,829 | 5.06 | ||||||||||||||||||
Advances from FHLB | 1,417,718 | 50,942 | 3.59 | 1,379,106 | 73,256 | 5.31 | ||||||||||||||||||
Long-term debt | 26,004 | 1,733 | 6.66 | 28,946 | 2,498 | 8.63 | ||||||||||||||||||
Total interest bearing liabilities | 4,683,489 | 119,637 | 2.55 | 4,629,819 | 170,059 | 3.67 | ||||||||||||||||||
Demand deposits | 828,825 | 946,356 | ||||||||||||||||||||||
Non-interest bearing other liabilities | 50,584 | 55,683 | ||||||||||||||||||||||
Total Liabilities | 5,562,898 | 5,631,858 | ||||||||||||||||||||||
Stockholder’s equity | 551,583 | 568,719 | ||||||||||||||||||||||
Total liabilities and stockholder’s equity | $ | 6,114,481 | $ | 6,200,577 | ||||||||||||||||||||
Net interest income/net interest spread | 193,648 | 3.03 | % | 206,255 | 2.94 | % | ||||||||||||||||||
Tax equivalent adjustment | — | (6,745 | ) | |||||||||||||||||||||
Net interest income | 193,648 | 199,510 | ||||||||||||||||||||||
Margin | ||||||||||||||||||||||||
Interest income/interest earning assets | 5.58 | % | 6.61 | % | ||||||||||||||||||||
Interest expense/interest earning assets | 2.13 | 2.99 | ||||||||||||||||||||||
Net interest margin | 3.45 | % | 3.62 | % | ||||||||||||||||||||
(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 | ||||||||||||||||||||||||||||
For the Three Months Ended | Years Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Beginning balance | $ | 106,435 | 98,424 | 83,396 | 94,020 | 92,358 | 94,020 | 43,602 | ||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Residential real estate | (2,088 | ) | (1,077 | ) | (1,027 | ) | (624 | ) | (255 | ) | (4,816 | ) | (461 | ) | ||||||||||||||
Commercial real estate | — | (4,965 | ) | (14,501 | ) | (40,591 | ) | (3,118 | ) | (60,057 | ) | (12,562 | ) | |||||||||||||||
Commercial business | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer | (9,197 | ) | (7,684 | ) | (7,225 | ) | (4,836 | ) | (4,094 | ) | (28,942 | ) | (7,065 | ) | ||||||||||||||
Small business | (1,755 | ) | (1,471 | ) | (464 | ) | (1,196 | ) | (534 | ) | (4,886 | ) | (2,554 | ) | ||||||||||||||
Total charge-offs | (13,040 | ) | (15,197 | ) | (23,217 | ) | (47,247 | ) | (8,001 | ) | (98,701 | ) | (22,642 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Residential real estate | 130 | 75 | 192 | — | — | 397 | 15 | |||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | 304 | |||||||||||||||||||||
Commercial business | 3 | 9 | 3 | 26 | 14 | 41 | 862 | |||||||||||||||||||||
Consumer | 163 | 63 | 130 | 88 | 49 | 444 | 417 | |||||||||||||||||||||
Small business | 111 | 137 | 119 | 61 | 85 | 428 | 620 | |||||||||||||||||||||
Total recoveries | 407 | 284 | 444 | 175 | 148 | 1,310 | 2,218 | |||||||||||||||||||||
Net charge-offs | (12,633 | ) | (14,913 | ) | (22,773 | ) | (47,072 | ) | (7,853 | ) | (97,391 | ) | (20,424 | ) | ||||||||||||||
Transfer specific reserves to Parent | — | — | — | (6,440 | ) | — | (6,440 | ) | — | |||||||||||||||||||
Provision for loan losses | 31,770 | 22,924 | 37,801 | 42,888 | 9,515 | 135,383 | 70,842 | |||||||||||||||||||||
Ending balance | $ | 125,572 | 106,435 | 98,424 | 83,396 | 94,020 | 125,572 | 94,020 | ||||||||||||||||||||
Annualized net charge-offs to average loans | % | 1.15 | 1.34 | 2.04 | 4.06 | 0.67 | 2.17 | 0.44 | ||||||||||||||||||||
As of | ||||||||||||||||||||
12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | ||||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 208,088 | 89,742 | 77,901 | 55,790 | 178,591 | ||||||||||||||
Nonaccrual tax certificates | 1,441 | 2,317 | 2,309 | 2,013 | 2,094 | |||||||||||||||
Real estate owned | 19,045 | 20,054 | 20,298 | 19,784 | 17,216 | |||||||||||||||
Other repossessed assets | — | — | — | — | — | |||||||||||||||
Total nonperforming assets | 228,574 | 112,113 | 100,508 | 77,587 | 197,901 | |||||||||||||||
Nonperforming assets to total loans and other assets | % | 4.95 | 2.36 | 2.05 | 1.67 | 4.10 | ||||||||||||||
Allowance for loan losses to total loans | % | 2.87 | 2.40 | 2.21 | 1.86 | 2.04 | ||||||||||||||
Provision to average loans | % | 2.89 | 2.06 | 3.38 | 3.70 | 0.82 | ||||||||||||||
Allowance to nonaccrual loans | % | 60.35 | 118.60 | 126.34 | 149.48 | 52.65 | ||||||||||||||
Nonperforming loans to total loans | % | 4.75 | 2.02 | 1.75 | 1.25 | 3.87 | ||||||||||||||
Nonperforming assets to reserves and stockholder equity | % | 41.98 | 16.91 | 15.41 | 12.39 | 31.28 |
Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
Condensed Statements of Operations — Unaudited
For the | ||||||||||||||||||||||||||||
For the Three Months Ended | Years Ended | |||||||||||||||||||||||||||
(in thousands) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | |||||||||||||||||||||
Net interest expense | $ | (5,343 | ) | (4,778 | ) | (4,324 | ) | (5,374 | ) | (5,473 | ) | (19,819 | ) | (20,734 | ) | |||||||||||||
Provision for loan losses | 6,682 | 8,290 | 9,446 | — | — | 24,418 | — | |||||||||||||||||||||
Net interest income after provision for loan losses | (12,025 | ) | (13,068 | ) | (13,770 | ) | (5,374 | ) | (5,473 | ) | (44,237 | ) | (20,734 | ) | ||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||
Income from unconsolidated subsidiaries | 155 | 143 | 140 | 162 | 174 | 600 | 1,281 | |||||||||||||||||||||
Securities activities, net | (3,413 | ) | 1,131 | 7,005 | (5,079 | ) | (4,024 | ) | (356 | ) | 6,105 | |||||||||||||||||
Other | 287 | 202 | 269 | 271 | 275 | 1,029 | 864 | |||||||||||||||||||||
Non-interest income | (2,971 | ) | 1,476 | 7,414 | (4,646 | ) | (3,575 | ) | 1,273 | 8,250 | ||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 768 | 1,326 | 1,063 | 912 | 701 | 4,069 | 2,421 | |||||||||||||||||||||
Advertising and business promotion | 105 | 42 | 98 | 34 | 62 | 279 | 317 | |||||||||||||||||||||
Professional fees | 603 | 464 | 215 | 500 | 98 | 1,782 | 424 | |||||||||||||||||||||
Other | 2,905 | 210 | 290 | 229 | 300 | 3,634 | 1,120 | |||||||||||||||||||||
Non-interest expense | 4,381 | 2,042 | 1,666 | 1,675 | 1,161 | 9,764 | 4,282 | |||||||||||||||||||||
Loss from parent company activities before income taxes | (19,377 | ) | (13,634 | ) | (8,022 | ) | (11,695 | ) | (10,209 | ) | (52,728 | ) | (16,766 | ) | ||||||||||||||
Provision (benefit) for income taxes | 12,969 | (4,744 | ) | (2,718 | ) | (4,112 | ) | (3,655 | ) | 1,395 | (6,194 | ) | ||||||||||||||||
Net loss from parent company business segment | $ | (32,346 | ) | (8,890 | ) | (5,304 | ) | (7,583 | ) | (6,554 | ) | (54,123 | ) | (10,572 | ) | |||||||||||||
Condensed Statements of Financial Condition — Unaudited
As of | ||||||||||||||||||||
(in thousands) | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash | $ | 37,116 | 41,031 | 17,261 | 27,624 | 9,163 | ||||||||||||||
Securities | 3,630 | 5,727 | 18,664 | 28,864 | 185,724 | |||||||||||||||
Investment in subsidiaries | 482,904 | 634,266 | 638,679 | 634,447 | 535,281 | |||||||||||||||
Investment in unconsolidated subsidiaries | 8,820 | 8,820 | 8,820 | 8,820 | 8,820 | |||||||||||||||
Other assets | 7,943 | 9,482 | 21,006 | 30,672 | 16,339 | |||||||||||||||
Total assets | $ | 540,413 | 699,326 | 704,430 | 730,427 | 755,327 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Subordinated debentures and notes payable | $ | 294,195 | 294,195 | 294,195 | 294,195 | 294,195 | ||||||||||||||
Other liabilities | 5,092 | 4,898 | 2,029 | 2,336 | 1,811 | |||||||||||||||
Total liabilities | 299,287 | 299,093 | 296,224 | 296,531 | 296,006 | |||||||||||||||
Stockholders’ equity | 241,126 | 400,233 | 408,206 | 433,896 | 459,321 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 540,413 | 699,326 | 704,430 | 730,427 | 755,327 | ||||||||||||||
Parent Company Business Segment
Allowance for Loan Loss and Credit Quality
Allowance for Loan Loss and Credit Quality
Parent Company and Work-out Subsidiary | For the | |||||||||||||||||||
(in thousands) | For the Three Months Ended | Year Ended | ||||||||||||||||||
12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2008 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
Beginning balance | $ | 7,702 | 7,702 | 6,440 | — | — | ||||||||||||||
Charge-offs | (2,699 | ) | (8,290 | ) | (8,184 | ) | — | (19,173 | ) | |||||||||||
Specific reserves transfer from BankAtlantic | — | — | — | 6,440 | 6,440 | |||||||||||||||
Provision for loan losses | 6,682 | 8,290 | 9,446 | — | 24,418 | |||||||||||||||
Ending balance | $ | 11,685 | 7,702 | 7,702 | 6,440 | 11,685 | ||||||||||||||
As of | ||||||||||||||||
12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | |||||||||||||
Credit Quality | ||||||||||||||||
Nonaccrual loans | $ | 79,327 | 82,059 | 90,412 | 101,493 | |||||||||||
Specific reserves | (11,685 | ) | (7,702 | ) | (7,702 | ) | (6,440 | ) | ||||||||
Nonaccrual loans, net | $ | 67,642 | 74,357 | 82,710 | 95,053 | |||||||||||
Consolidated BankAtlantic Bancorp and Subsidiaries
Nonperforming Assets and Credit Quality Statistics
Nonperforming Assets and Credit Quality Statistics
(in thousands) | As of | |||||||||||||||
12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | |||||||||||||
Nonperforming Assets | ||||||||||||||||
Commercial real estate | $ | 235,636 | 132,840 | 138,808 | 130,645 | |||||||||||
Residential | 34,734 | 23,545 | 18,208 | 15,141 | ||||||||||||
Consumer | 6,763 | 5,867 | 4,495 | 4,374 | ||||||||||||
Commercial business | 5,638 | 5,638 | 5,638 | 6,231 | ||||||||||||
Small business | 4,644 | 3,911 | 1,165 | 893 | ||||||||||||
Total nonaccrual loans | 287,415 | 171,801 | 168,314 | 157,284 | ||||||||||||
Nonaccrual tax certificates | 1,441 | 2,317 | 2,309 | 2,013 | ||||||||||||
Real estate owned | 19,045 | 20,054 | 20,298 | 19,784 | ||||||||||||
Other repossessed assets | — | — | — | — | ||||||||||||
Total nonperforming assets, gross | $ | 307,901 | 194,172 | 190,921 | 179,081 | |||||||||||
Credit Quality Statistics | ||||||||||||||||
Nonperforming assets, gross to total loans and other assets | % | 6.55 | 4.01 | 3.83 | 3.77 | |||||||||||
Allowance for loan losses to total loans | % | 3.07 | 2.53 | 2.33 | 1.96 | |||||||||||
Provision to average loans | % | 3.43 | 2.75 | 4.13 | 3.70 | |||||||||||
Allowance to nonaccrual loans | % | 47.76 | 66.44 | 63.05 | 57.12 |