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BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)
For The
For The Three Months Ended Six Months Ended
----------------------------------------------------------- ---------------------
(in thousands except share data and ratios)
6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002 6/30/2003 6/30/2002
--------- --------- ---------- --------- --------- --------- ---------
Current Earnings:
GAAP Net Income (note 1) $ 17,209 14,358 18,066 14,473 20,323 31,567 17,796
Operating Net Income (note 2) $ 18,280 14,358 19,020 15,737 13,319 32,638 26,587
Average Common Shares Outstanding:
Basic 58,321,020 58,171,621 58,085,481 58,065,396 57,973,880 58,246,733 57,918,382
Diluted GAAP 61,898,924 64,250,488 64,188,382 64,320,448 57,973,880 63,047,682 60,887,362
Diluted Operating 61,898,924 64,250,488 64,188,382 64,320,448 64,747,784 63,047,682 64,981,777
Key GAAP Performance Ratios:
Basic earnings per share $ 0.30 0.25 0.31 0.25 0.35 0.54 0.31
Diluted earnings per share * $ 0.28 0.23 0.29 0.23 0.35 0.51 0.29
Return on average tangible
assets (note 3) % 1.21 1.06 1.32 1.02 1.47 1.14 0.70
Return on average tangible
equity (note 3) % 17.38 15.02 19.98 16.96 24.63 16.93 9.99
Key Operating Performance Ratios:
Basic earnings per share $ 0.31 0.25 0.33 0.27 0.23 0.56 0.46
Diluted earnings per share * $ 0.30 0.23 0.30 0.25 0.21 0.53 0.42
Operating return on average
tangible assets (note 3) % 1.28 1.06 1.39 1.10 0.96 1.18 1.05
Operating return on average
tangible equity (note 3) % 18.46 15.02 21.03 18.44 16.14 17.50 14.93
* Diluted earnings per share
calculation adds back interest
expense net of tax on convertible
securities if dilutive $ 129 440 440 440 440 569 880
Average Balance Sheet Data:
Assets $5,787,226 5,491,930 5,552,458 5,796,782 5,620,134 5,640,395 5,138,393
Tangible assets (note 3) $5,696,656 5,399,787 5,459,454 5,701,036 5,522,552 5,549,043 5,076,713
Loans $3,983,528 3,633,446 3,602,605 3,679,371 3,564,545 3,809,454 3,214,362
Investments $1,087,937 1,131,737 1,207,985 1,392,785 1,367,312 1,109,716 1,349,802
Deposits and escrows $2,925,061 2,851,626 2,970,904 2,988,545 3,028,407 2,888,546 2,726,277
Stockholders' equity $ 480,115 464,712 456,579 441,177 427,740 472,456 419,596
Tangible stockholders' equity (note 3) $ 396,050 382,487 361,681 341,355 330,042 372,902 356,223
Tangible equity to tangible
assets % 6.95 7.08 6.62 5.99 5.98 6.72 7.02
Notes:
(1) GAAP net income is defined as net income in accordance with generally
accepted accounting principles.
(2) Operating net income is defined as GAAP income before extraordinary
items and cumulative accounting change, adjusted for restructuring
charges and write downs, costs associated with debt redemptions, loss
on mutual funds associated with the acquired Gruntal deferred
compensation plan, acquisition and conversion related charges and
impairment of equity securities, net of tax
(3) Average tangible assets is defined as average total assets less
average goodwill and core deposit intangibles. Average tangible
stockholders' equity is defined as average total stockholders' equity
less average goodwill, core deposit intangibles and other
comprehensive income.
** Operating net income is not prepared in accordance with GAAP and this
non-GAAP financial measure should not be construed as being superior
to GAAP.
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
(In thousands, except share data) 6/30/2003 12/31/2002 6/30/2002
----------- ----------- -----------
ASSETS
Cash and due from depository institutions $ 127,150 200,600 150,468
Securities purchased under resell agreements and federal funds -- 50,145 149
Investment securities and tax certificates (approximate fair value:
$208,622, $212,698 and $461,020) 208,621 212,240 453,778
Loans receivable, net 4,024,340 3,372,630 3,564,143
Securities available for sale (at fair value) 509,572 707,858 767,648
Securities owned (at fair value) 224,405 186,454 244,000
Accrued interest receivable 34,162 33,984 36,687
Real estate held for development and sale and joint ventures 268,546 252,087 237,962
Investment in unconsolidated real estate subsidiary 64,381 60,695 58,205
Office properties and equipment, net 92,174 92,699 92,740
Federal Home Loan Bank stock, at cost which approximates fair value 69,131 64,943 60,732
Deferred tax asset, net 34,527 35,316 38,857
Goodwill 76,674 78,612 83,526
Core deposit intangible asset 12,864 13,757 14,664
Other assets 64,931 58,991 91,833
----------- ----------- -----------
Total assets $ 5,811,478 5,421,011 5,895,392
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Interest free checking $ 546,805 462,718 412,425
NOW accounts 455,514 399,985 335,414
Savings accounts 191,586 163,641 149,967
Insured money fund savings 850,579 775,175 769,390
Certificate accounts 859,896 1,119,036 1,312,902
----------- ----------- -----------
Total deposits 2,904,380 2,920,555 2,980,098
Advances from FHLB 1,332,300 1,297,170 1,218,926
Securities sold under agreements to repurchase 218,141 116,279 491,735
Federal funds purchased 155,000 -- 80,000
Subordinated debentures, notes and bonds payable 140,810 193,816 195,243
Guaranteed preferred beneficial interests in Company's Junior
Subordinated Debentures 255,375 180,375 155,125
Securities sold not yet purchased 34,968 38,003 68,325
Due to clearing agent 112,410 78,791 94,312
Other liabilities 162,263 126,688 165,300
----------- ----------- -----------
Total liabilities 5,315,647 4,951,677 5,449,064
----------- ----------- -----------
Stockholders' equity:
Preferred stock, $.01 par value, 10,000,000 shares authorized;
none issued and outstanding -- -- --
Class A common stock, $.01 par value, authorized 80,000,000 shares;
issued and outstanding 53,753,721, 53,441,847 and 53,392,502 shares 538 534 534
Class B common stock, $.01 par value, authorized 45,000,000 shares;
issued and outstanding 4,876,124, 4,876,124 and 4,876,124 shares 49 49 49
Additional paid-in capital 254,532 252,699 253,127
Unearned compensation - restricted stock grants (1,133) (1,209) (1,285)
Retained earnings 241,632 213,692 184,768
----------- ----------- -----------
Total stockholders' equity before accumulated other comprehensive income 495,618 465,765 437,193
Accumulated other comprehensive income 213 3,569 9,135
----------- ----------- -----------
Total stockholders' equity 495,831 469,334 446,328
----------- ----------- -----------
Total liabilities and stockholders' equity $ 5,811,478 5,421,011 5,895,392
=========== =========== ===========
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
For the
For The Three Months Ended Six Months Ended
------------------------------------------------------ --------------------
(in thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002 6/30/2003 6/30/2002
--------- --------- ---------- --------- --------- --------- ---------
INTEREST INCOME:
Interest and fees on loans $ 54,257 52,996 55,502 59,969 59,325 107,253 106,396
Interest on securities available
for sale 7,686 8,657 8,214 10,322 11,804 16,343 23,870
Interest and dividends on investment
and trading securities 10,082 9,540 11,657 13,214 11,925 19,622 20,626
--------- --------- --------- --------- --------- --------- ---------
Total interest income 72,025 71,193 75,373 83,505 83,054 143,218 150,892
--------- --------- --------- --------- --------- --------- ---------
INTEREST EXPENSE:
Interest on deposits 9,758 11,169 14,256 16,089 17,106 20,927 32,432
Interest on advances from FHLB 15,291 15,316 15,960 15,856 15,676 30,607 30,596
Interest on short-term borrowed
funds 1,248 819 744 2,305 2,113 2,067 3,497
Interest on long-term debt 6,792 6,219 7,457 7,306 6,853 13,011 11,461
Capitalized interest on real
estate developments (1,608) (1,574) (1,478) (1,688) (1,613) (3,182) (2,831)
--------- --------- --------- --------- --------- --------- ---------
Total interest expense 31,481 31,949 36,939 39,868 40,135 63,430 75,155
--------- --------- --------- --------- --------- --------- ---------
NET INTEREST INCOME 40,544 39,244 38,434 43,637 42,919 79,788 75,737
Provision for loan losses 1,490 850 3,291 2,082 6,139 2,340 8,704
--------- --------- --------- --------- --------- --------- ---------
NET INTEREST INCOME AFTER PROVISION 39,054 38,394 35,143 41,555 36,780 77,448 67,033
--------- --------- --------- --------- --------- --------- ---------
NON-INTEREST INCOME:
Service charges on deposits 9,605 8,558 9,245 6,684 5,687 18,163 10,550
Other service charges and fees 6,071 3,918 3,841 3,591 3,550 9,989 6,655
Broker/dealer revenue and other
commissions 58,091 57,984 49,721 50,196 38,191 116,075 51,239
Securities gains (losses) (19) 384 (27) 2,483 3,083 365 6,122
Impairment of securities -- -- (342) (302) (18,157) -- (18,157)
Gain (losses) on sales of loans 1 3 2,066 (230) 2 4 4
Income from real estate operations 20,515 13,788 18,355 8,852 12,466 34,303 24,443
Income from unconsolidated subsidiary 2,319 119 2,181 1,427 1,741 2,438 1,741
Other 3,466 3,249 3,563 2,913 2,763 6,715 4,629
--------- --------- --------- --------- --------- --------- ---------
Total non-interest income 100,049 88,003 88,603 75,614 49,326 188,052 87,226
--------- --------- --------- --------- --------- --------- ---------
NON-INTEREST EXPENSES:
Employee compensation and benefits 69,015 67,032 58,469 59,714 53,902 136,047 80,765
Occupancy and equipment 9,891 10,007 10,737 11,377 10,551 19,898 17,845
Amortization of intangible assets 439 454 453 453 454 893 454
Write-down of real estate owned -- 755 -- 1,400 7 755 64
Other 31,298 26,050 25,957 23,694 23,640 57,348 37,166
Restructuring charges and write-downs 1,648 -- 3,125 -- 1,007 1,648 1,007
Acquisition related charges -- -- -- (71) 3,922 -- 4,996
--------- --------- --------- --------- --------- --------- ---------
Total non-interest expenses 112,291 104,298 98,741 96,567 93,483 216,589 142,297
--------- --------- --------- --------- --------- --------- ---------
Income (loss) before income taxes,
extraordinary items and cumulative
accounting change 26,812 22,099 25,005 20,602 (7,377) 48,911 11,962
Provision (benefit) for income taxes 9,603 7,741 6,939 6,068 (3,890) 17,344 2,869
--------- --------- --------- --------- --------- --------- ---------
Income (loss) before extraordinary items
and cumulative accounting change 17,209 14,358 18,066 14,534 (3,487) 31,567 9,093
Extraordinary items, net of tax -- -- -- (61) 23,810 -- 23,810
Cumulative accounting change, net of tax -- -- -- -- -- -- (15,107)
--------- --------- --------- --------- --------- --------- ---------
GAAP net income (note 1) $ 17,209 14,358 18,066 14,473 20,323 31,567 17,796
========= ========= ========= ========= ========= ========= =========
Reconciliation of Operating and
GAAP Net Income
- -------------------------------
GAAP net income (loss) before
extraordinary items and cumulative
accounting change $ 17,209 14,358 18,066 14,534 (3,487) 31,567 9,093
Restructuring charges and write-downs -- -- -- 655 -- 655
Costs associated with debt redemption 1,071 -- 2,031 -- -- 1,071 --
Loss on mutual funds associated with
acquired Gruntal deferred compensation
plan -- -- -- 1,493 -- -- --
Acquisition and conversion related
charges -- -- (1,300) (487) 4,350 -- 5,037
Impairment of securities available
for sale -- -- 222 196 11,802 -- 11,802
--------- --------- --------- --------- --------- --------- ---------
Operating net income (note 2) $ 18,280 14,358 19,020 15,737 13,319 32,638 26,587
========= ========= ========= ========= ========= ========= =========
BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
For the three months ended
----------------------------------------------------------------------------------
(in thousands except percentages
and per share data) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002
------------ ------------ ------------ ------------ ------------
Gross loans:
Residential real estate $ 1,880,890 1,559,553 1,471,218 1,576,825 1,570,598
Commercial real estate 1,508,064 1,482,352 1,552,221 1,543,243 1,453,042
Consumer 306,740 296,675 283,119 264,873 245,209
Lease financing 22,713 29,962 34,623 40,410 46,315
Commercial business 106,323 100,753 99,118 93,136 96,711
Small business 158,798 164,151 162,306 160,884 152,670
------------ ------------ ------------ ------------ ------------
Total Loans 3,983,528 3,633,446 3,602,605 3,679,371 3,564,545
Investments 1,087,937 1,131,737 1,207,985 1,392,785 1,367,312
------------ ------------ ------------ ------------ ------------
Total interest earning assets 5,071,465 4,765,183 4,810,590 5,072,156 4,931,857
Goodwill and core deposit intangibles 90,570 92,143 93,004 95,746 97,582
Other non-interest earning assets 625,191 634,604 648,864 628,880 590,695
------------ ------------ ------------ ------------ ------------
Total assets $ 5,787,226 5,491,930 5,552,458 5,796,782 5,620,134
============ ============ ============ ============ ============
Tangible assets (note 3) $ 5,696,656 5,399,787 5,459,454 5,701,036 5,522,552
============ ============ ============ ============ ============
Deposits:
Savings $ 185,685 171,298 157,376 149,906 148,926
NOW 454,108 425,642 379,271 357,709 337,707
Money funds 836,246 809,462 795,996 786,375 778,630
Certificates of deposit 913,564 966,869 1,186,270 1,266,869 1,340,929
------------ ------------ ------------ ------------ ------------
Total interest bearing
deposits 2,389,603 2,373,271 2,518,913 2,560,859 2,606,192
Short-term borrowed funds 385,604 269,660 194,252 519,886 477,267
FHLB advances 1,313,896 1,284,983 1,305,466 1,229,562 1,169,404
Long-term debt 409,567 377,185 377,620 346,416 318,476
------------ ------------ ------------ ------------ ------------
Total interest bearing liabilities 4,498,670 4,305,099 4,396,251 4,656,723 4,571,339
Non-interest bearing deposits 535,458 478,355 451,991 427,686 422,215
Non-interest bearing other liabilities 272,983 243,764 247,637 271,196 198,840
------------ ------------ ------------ ------------ ------------
Total liabilities 5,307,111 5,027,218 5,095,879 5,355,605 5,192,394
------------ ------------ ------------ ------------ ------------
Stockholders' equity 480,115 464,712 456,579 441,177 427,740
------------ ------------ ------------ ------------ ------------
Total liabilities and stockholders'
equity $ 5,787,226 5,491,930 5,552,458 5,796,782 5,620,134
============ ============ ============ ============ ============
Other comprehensive (loss) income in
stockholders' equity (6,505) (9,918) 1,894 4,076 116
------------ ------------ ------------ ------------ ------------
Tangible stockholders' equity (note 3) $ 396,050 382,487 361,681 341,355 330,042
============ ============ ============ ============ ============
Period end information:
Total loans, net $ 4,024,340 3,881,143 3,372,630 3,627,406 3,564,143
Total assets 5,811,478 5,806,532 5,421,011 5,724,214 5,895,392
Total stockholders' equity 495,831 479,616 469,334 457,440 446,328
Common shares outstanding 58,629,845 58,392,970 58,317,971 58,304,786 58,268,626
Cash dividends 1,817,525 1,810,182 1,807,857 1,807,449 1,689,953
Common stock cash dividends per share 0.031 0.031 0.031 0.031 0.029
Closing stock price 11.89 9.79 9.45 8.98 12.40
High stock price for the quarter 12.49 10.12 9.76 12.15 12.97
Low stock price for the quarter 9.60 8.76 7.30 7.00 10.05
Book value per share 8.46 8.21 8.05 7.85 7.66
Bank Operations Business Segment
Condensed Statements of Operations and Statistics (Unaudited)
For the
For the Three Months Ended Six Months Ended
-------------------------------------------------------------- -----------------------
(In thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002 6/30/2003 6/30/2002
-------- -------- -------- -------- -------- -------- --------
Net interest income $ 40,459 39,159 39,684 44,697 44,482 79,618 79,741
Provision for loan losses 1,490 850 3,291 2,082 6,139 2,340 8,704
-------- -------- -------- -------- -------- -------- --------
Net Interest income after
provision for loan losses 38,969 38,309 36,393 42,615 38,343 77,278 71,037
-------- -------- -------- -------- -------- -------- --------
Non-interest income
Service charges on deposits 9,605 8,558 9,245 6,684 5,687 18,163 10,550
Other service charges and fees 6,071 3,918 3,841 3,591 3,550 9,989 6,655
Securities gains (losses) (19) (21) (27) 1,977 2,770 (40) 2,791
Gain (losses) on sales of loans 1 3 2,066 (230) 2 4 4
Other non-interest income 3,686 1,900 1,968 1,287 1,543 5,586 2,915
-------- -------- -------- -------- -------- -------- --------
Total non-interest income 19,344 14,358 17,093 13,309 13,552 33,702 22,915
-------- -------- -------- -------- -------- -------- --------
Non-interest expense
Employee compensation and benefits 20,264 19,039 17,300 16,873 16,880 39,303 30,957
Occupancy and equipment 6,699 6,636 7,697 7,851 7,833 13,335 14,304
Amortization of intangible assets 439 454 454 453 454 893 454
Write-down of real estate owned -- 755 -- 1,400 7 755 64
Other 10,849 8,350 10,049 8,652 9,397 19,199 16,030
Restructuring charges and impairment
write-downs -- -- -- -- 1,007 -- 1,007
Acquisition and conversion related
charges -- -- -- (941) 731 -- 1,805
-------- -------- -------- -------- -------- -------- --------
Total non-interest expense 38,251 35,234 35,500 34,288 36,309 73,485 64,621
-------- -------- -------- -------- -------- -------- --------
Income from bank operations business
segment (pretax) 20,062 17,433 17,986 21,636 15,586 37,495 29,331
======== ======== ======== ======== ======== ======== ========
Reconciliation of Operating and
business segment income
Business segment income $ 20,062 17,433 17,986 21,636 15,586 37,495 29,331
Restructuring charges and
impairment write-downs -- -- -- -- 1,007 -- 1,007
Acquisition and conversion
related charges -- -- -- (941) 731 -- 1,805
-------- -------- -------- -------- -------- -------- --------
Operating income (pretax) $ 20,062 17,433 17,986 20,695 17,324 37,495 32,143
======== ======== ======== ======== ======== ======== ========
Statistics:
Average total interest earning
assets (in 000's) $ 4,930,653 4,634,822 4,681,594 4,948,182 4,876,306 4,783,554 4,507,804
Average total interest bearing
liabilities (in 000's) $ 4,174,158 3,979,381 4,075,758 4,332,964 4,278,876 4,077,307 3,917,129
GAAP operating efficiency ratio % 63.96 65.84 62.53 59.11 62.57 64.85 62.95
GAAP return on average assets % 0.98 0.90 0.91 1.05 0.77 0.94 0.79
GAAP return on average equity % 10.92 9.70 9.98 12.21 8.91 10.32 9.16
Operating efficiency ratio(1) % 63.96 65.84 62.53 60.73 59.57 64.85 60.21
Operating return on average
assets(1) % 0.98 0.90 0.91 1.00 0.85 0.94 0.86
Operating return on average
equity(1) % 10.92 9.70 9.98 11.37 9.87 10.32 10.04
Net interest margin % 3.27 3.35 3.41 3.64 3.64 3.31 3.51
Yield on earning assets % 5.46 5.78 6.08 6.41 6.53 5.61 6.51
Cost of interest-bearing
liabilities % 2.58 2.83 3.06 3.16 3.29 2.70 3.45
Interest spread % 2.88 2.95 3.02 3.25 3.24 2.91 3.06
(1) Ratios have been adjusted to exclude restructuring charges, impairment
writedowns and acquisition and conversion related charges.
Condensed Statements of Financial Condition (Unaudited)
As Of
-------------------------------------------------------------------------------
(In thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002
----------- ----------- ----------- ----------- -----------
ASSETS
Loans receivable $ 4,070,328 3,926,122 3,419,530 3,673,746 3,614,946
Held to maturity securities 274,352 237,479 323,400 473,013 510,736
Available for sale securities 503,514 739,468 706,497 638,119 762,376
Goodwill 70,489 70,489 71,222 71,653 74,929
Core deposit intangible asset 12,864 13,303 13,757 14,210 14,664
Other assets 289,498 309,899 369,480 344,238 353,034
----------- ----------- ----------- ----------- -----------
Total assets $ 5,221,045 5,296,760 4,903,886 5,214,979 5,330,685
=========== =========== =========== =========== ===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Deposits $ 2,904,380 2,883,373 2,920,555 552,974,874 2,980,098
Advances from Federal Home Loan Bank 1,332,300 1,308,246 1,297,170 1,307,739 1,218,926
Short term borrowings 401,298 523,947 127,272 378,443 579,354
Long term debt 33,461 35,425 35,755 14,026 14,315
Other liabilities 71,609 74,428 55,378 75,174 79,372
----------- ----------- ----------- ----------- -----------
Total liabilities 4,743,048 4,825,419 4,436,130 4,750,256 4,872,065
Stockholder's equity 477,997 471,341 467,756 464,723 458,620
----------- ----------- ----------- ----------- -----------
Total liabilities and stockholder's equity $ 5,221,045 5,296,760 4,903,886 5,214,979 5,330,685
=========== =========== =========== =========== ===========
Bank Operations Business Segment
Average Balance Sheet - Yield / Rate Analysis
For the Three Months Ended
-----------------------------------------------------------------------------------
June 30, 2003 June 30, 2002
-------------------------------------- --------------------------------------
(in thousands) Average Revenue/ Yield/ Average Revenue/ Yield/
Balance Expense Rate Balance Expense Rate
------------ ----------- ----------- ------------ ----------- -----------
Loans:
Residential real estate $ 1,880,890 22,556 4.80 % $ 1,570,598 25,139 6.40 %
Commercial real estate 1,554,965 23,373 6.01 1,499,812 24,826 6.62
Consumer 306,740 3,520 4.59 245,209 3,522 5.75
Lease financing 22,713 648 11.41 46,315 1,453 12.55
Commercial business 106,323 1,496 5.63 96,711 1,387 5.74
Small business 158,798 2,895 7.29 152,670 2,995 7.85
------------ ----------- ----------- ------------ ----------- -----------
Total loans 4,030,429 54,488 5.41 3,611,315 59,322 6.57
------------ ----------- ----------- ------------ ----------- -----------
Investments 900,224 12,848 5.71 1,264,991 20,300 6.42
------------ ----------- ----------- ------------ ----------- -----------
Total interest earning assets 4,930,653 67,336 5.46 % 4,876,306 79,622 6.53 %
----------- ----------- ----------- -----------
Goodwill and core deposit intangibles 83,591 90,678
Other non-interest earning assets 237,074 247,027
------------ ------------
Total Assets $ 5,251,318 $ 5,214,011
============ ============
Deposits:
Savings $ 185,685 268 0.58 % $ 148,926 375 1.01 %
NOW 454,108 561 0.50 337,707 735 0.87
Money funds 836,246 2,625 1.26 778,630 3,659 1.88
Certificate accounts 913,564 6,304 2.77 1,340,929 12,337 3.69
------------ ----------- ----------- ------------ ----------- -----------
Total deposits 2,389,603 9,758 1.64 2,606,192 17,106 2.63
------------ ----------- ----------- ------------ ----------- -----------
Short-term borrowed funds 436,975 1,337 1.23 488,986 2,134 1.75
Advances from FHLB 1,313,896 15,291 4.67 1,169,404 15,676 5.38
Long-term debt 33,684 491 5.85 14,294 224 6.29
------------ ----------- ----------- ------------ ----------- -----------
Total interest bearing liabilities 4,174,158 26,877 2.58 4,278,876 35,140 3.29
Non-interest bearing deposits 535,567 422,215
Non-interest bearing other liabilities 71,454 65,143
------------ ------------
Total Liabilities 4,781,179 4,766,234
Stockholder's equity 470,139 447,777
------------ ------------
Total liabilities and stockholder's
equity $ 5,251,318 $ 5,214,011
============ ============
Net interest income/ net interest
spread $ 40,459 2.88 % $ 44,482 3.24 %
=========== =========== =========== ===========
Margin
Interest income/interest earning assets 5.46 % 6.53 %
Interest expense/interest earning assets 2.19 2.89
----------- -----------
Net interest margin 3.27 % 3.64 %
=========== ===========
Bank Operations
Average Balance Sheet - Yield / Rate Analysis
For the Six Months Ended
-----------------------------------------------------------------------------------
June 30, 2003 June 30, 2002
-------------------------------------- --------------------------------------
(in thousands) Average Revenue/ Yield/ Average Revenue/ Yield/
Balance Expense Rate Balance Expense Rate
------------ ----------- ----------- ------------ ----------- -----------
Loans:
Residential real estate $ 1,721,109 44,142 5.13 % $ 1,331,126 43,160 6.48 %
Commercial real estate 1,542,751 46,239 5.99 1,402,857 45,357 6.47
Consumer 301,735 6,988 4.63 231,669 6,754 5.83
Lease financing 26,318 1,482 11.26 49,593 3,044 12.28
Commercial business 103,553 2,945 5.69 103,678 3,046 5.88
Small business 161,460 5,932 7.35 130,969 5,248 8.01
------------ ----------- ----------- ------------ ----------- ---------
Total loans 3,856,926 107,728 5.59 3,249,892 106,609 6.56
------------ ----------- ----------- ------------ ----------- ---------
Investments 926,628 26,536 5.73 1,257,912 40,117 6.38
------------ ----------- ----------- ------------ ----------- ---------
Total interest earning assets 4,783,554 134,264 5.61 % 4,507,804 146,726 6.51 %
----------- ---------- ----------- ---------
Goodwill and core deposit intangibles 84,170 54,552
Other non-interest earning assets 249,449 212,150
------------ ------------
Total Assets $ 5,117,173 $ 4,774,506
============ ============
Deposits:
Savings $ 178,531 584 0.66 % $ 127,955 644 1.01 %
NOW 439,944 1,103 0.51 286,372 1,085 0.76
Money funds 822,938 5,278 1.29 708,528 6,627 1.89
Certificate accounts 940,069 13,962 3.00 1,232,917 24,077 3.94
------------ ----------- ----------- ------------ ----------- ---------
Total deposits 2,381,482 20,927 1.77 2,355,772 32,433 2.78
------------ ----------- ----------- ------------ ----------- ---------
Short-term borrowed funds 361,763 2,174 1.21 425,377 3,715 1.76
Advances from FHLB 1,299,519 30,607 4.75 1,128,039 30,597 5.47
Long-term debt 34,543 938 5.48 7,941 240 6.09
------------ ----------- ----------- ------------ ----------- ---------
Total interest bearing liabilities 4,077,307 54,646 2.70 3,917,129 66,985 3.45
Non-interest bearing deposits 507,119 370,505
Non-interest bearing other liabilities 67,518 76,912
------------ ------------
Total Liabilities 4,651,944 4,364,546
Stockholder's equity 465,229 409,960
------------ ------------
Total liabilities and stockholder's
equity $ 5,117,173 $ 4,774,506
============ ============
Net interest income/net
interest spread $ 79,618 2.91 % $ 79,741 3.06 %
========== =========== ========== =========
Margin
Interest income/interest earning assets 5.61 % 6.51 %
Interest expense/interest earning assets 2.30 3.00
---------- ---------
Net interest margin 3.31 % 3.51 %
========== =========
Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
For the
(in thousands) For the Three Months Ended Six Months Ended
------------------------------------------------------------ ---------------------
6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002 6/30/2003 6/30/2002
--------- --------- ---------- --------- --------- --------- ---------
Allowance for Loan Losses
Beginning balance $ 48,695 48,022 45,602 48,587 48,927 48,022 44,585
Charge-offs:
Residential real estate (98) (114) (401) (284) (3) (212) (142)
Commercial real estate -- -- (140) (2,549) (4,309) -- (4,309)
Commercial business (536) (2,453) (1,106) (1,779) (1,972) (2,989) (4,185)
Consumer (490) (405) (342) (396) (536) (895) (1,385)
Small business (1,433) (620) (736) (727) (1,261) (2,053) (2,192)
Syndication -- -- -- (13) -- -- (8,000)
-------- -------- -------- -------- -------- -------- --------
Total charge-offs (2,557) (3,592) (2,725) (5,748) (8,081) (6,149) (20,213)
-------- -------- -------- -------- -------- -------- --------
Recoveries:
Residential real estate 61 57 174 94 60 118 63
Commercial real estate -- 1 -- 3 3 1 17
Commercial business 694 667 559 597 982 1,361 1,935
Consumer 414 464 431 411 498 878 1,076
Small business 575 833 630 549 698 1,408 1,089
Syndication 204 2,127 489 102 -- 2,331 683
-------- -------- -------- -------- -------- -------- --------
Total recoveries 1,948 4,149 2,283 1,756 2,241 6,097 4,863
-------- -------- -------- -------- -------- -------- --------
Net (charge-offs) recoveries (609) 557 (442) (3,992) (5,840) (52) (15,350)
Provision for loan losses 1,490 850 3,292 2,082 6,139 2,340 8,704
Acquired allowance for loan losses -- (734) (430) (1,075) (639) (734) 10,648
-------- -------- -------- -------- -------- -------- --------
Ending allowance for loan losses $ 49,576 48,695 48,022 45,602 48,587 49,576 48,587
======== ======== ======== ======== ======== ======== ========
Annualized net charge-offs to
average loans 0.06 (0.06) 0.05 0.43 0.66 0.00 0.94
======== ======== ======== ======== ======== ======== ========
As of
------------------------------------------------------------
6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002
--------- --------- ---------- --------- ---------
Credit Quality
Nonaccrual loans and tax
certificates $ 12,900 13,357 18,232 29,366 37,792
Acquired nonaccrual loans 409 1,537 2,105 3,065 3,136
Real estate owned, net of allowance 8,157 9,045 9,607 10,015 11,603
Other repossessed assets 435 513 4 1 0
-------- -------- -------- -------- --------
Total nonperforming assets $ 21,901 24,452 29,948 42,447 52,531
======== ======== ======== ======== ========
Loan loss allowance to non
performing assets % 226.36 199.15 160.35 107.43 92.49
======== ======== ======== ======== ========
Nonperforming assets to total
loans and other assets % 0.51 0.60 0.83 1.10 1.38
Allowance for loan losses to
total loans % 1.22 1.24 1.40 1.24 1.34
Levitt Corporation Business Segment
Condensed Statements of Operations and Statistics - Unaudited
For the
For the Three Months Ended Six Months Ended
-------------------------------------------------------- -------------------
(in thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002 6/30/2003 6/30/2002
--------- --------- ---------- --------- --------- --------- ---------
Revenues
Sales of real estate $ 17,888 13,441 17,829 8,392 11,121 31,329 21,912
Income (loss) from
unconsolidated subsidiary 1,940 (134) 2,107 941 1,522 1,806 1,522
Joint venture operations 231 (313) (657) 130 477 (82) 1,376
Interest - other 823 758 1,127 512 736 1,581 1,513
--------- ------ ------ ----- ------ ------ ------
Total revenues 20,882 13,752 20,406 9,975 13,856 34,634 26,323
--------- ------ ------ ----- ------ ------ ------
Operating expenses
Compensation, benefits 4,708 3,682 4,491 3,334 3,538 8,390 6,158
Selling, general and
administrative 3,565 2,706 3,147 2,378 2,432 6,271 4,284
Interest 8 241 6 70 312 249 313
Other 2,237 1,755 1,924 1,357 1,769 3,992 3,475
--------- ------ ------ ----- ------ ------ ------
Total operating expenses 10,518 8,384 9,568 7,139 8,051 18,902 14,230
--------- ------ ------ ----- ------ ------ ------
Income from Levitt Corporation
(pretax) $ 10,364 5,368 10,838 2,836 5,805 15,732 12,093
========= ======= ======= ======= ======= ======= =======
Statistics:
Return on equity % 21.61 11.86 24.76 6.96 15.26 16.40 15.90
Administrative expenses as a
% of revenue 17.07 19.68 15.42 23.84 17.55 18.11 16.27
Gross profit as a percent of sales 26.68 25.38 21.71 20.48 23.73 26.11 25.86
Debt to equity 1.38 1.46 1.37 1.49 1.49 1.38 1.49
Housing units:
Backlog (units) 1,576 1,129 885 814 713 1,576 713
Sales (units) 210 162 249 195 230 372 436
New contracts 596 467 320 296 236 1,063 425
Condensed Statements of Financial Condition - Unaudited
As of
--------------------------------------------------------
(in thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002
--------- --------- ---------- --------- ---------
ASSETS
Cash $ 31,568 27,946 19,002 13,669 15,485
Loans receivable 4,809 6,205 6,082 5,944 5,575
Real estate inventory and joint
venture investments 222,411 218,351 202,377 202,937 187,628
Investment in unconsolidated
subsidiary 60,224 57,866 57,332 56,520 55,267
Other assets 10,645 11,052 10,668 11,512 13,387
--------- ------- ------- ------- -------
Total assets $ 329,657 321,420 295,461 290,582 277,342
========= ======= ======= ======= =======
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Notes payable $ 132,208 131,970 117,445 119,136 115,079
Notes payable to BankAtlantic
Bancorp 30,000 30,000 30,000 30,000 30,000
Other liabilities 49,593 48,217 40,483 41,376 34,885
--------- ------- ------- ------- -------
Total liabilities 211,801 210,187 187,928 190,512 179,964
--------- ------- ------- ------- -------
Stockholder's equity 117,856 111,233 107,533 100,070 97,378
--------- ------- ------- ------- -------
Total liabilities and stockholder's
equity $ 329,657 321,420 295,461 290,582 277,342
========= ======= ======= ======= =======
<Table>
<Caption>
Levitt Corporation Spin-off Pro Forma
SUMMARY PRO FORMA STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
As of June 30, 2003
-------------------------------------------------------------
BBX After
BBX Levitt Levitt Spin-off Levitt
(In thousands) As Reported As Reported Pro Forma Pro Forma
----------- ----------- --------------- ---------
ASSETS
Cash and short-term investments $ 127,150 31,568 114,100 31,568
Investments 1,011,729 -- 1,011,729 --
Loans 4,024,340 4,809 4,113,828 4,809
Real estate held for development and sale and joint ventures 268,546 222,411 20,467 222,411
Investment in unconsolidated real estate subsidiary 64,381 60,224 -- 64,381
Other Assets 315,332 10,645 307,046 10,645
---------- ---------- ---------- ----------
Total Assets $5,811,478 329,657 5,567,170 333,814
========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $2,904,380 -- 2,904,380 --
FHLB Advances 1,332,300 -- 1,332,300 --
Other short-term borrowings 373,141 -- 391,659 --
Other long-term borrowings 396,185 162,208 290,486 175,708
Other liabilities 309,641 49,593 262,407 49,593
---------- ---------- ---------- ----------
Total Liabilities 5,315,647 211,801 5,181,232 225,301
Stockholders' Equity 495,831 117,856 385,938 108,513
---------- ---------- ---------- ----------
Total Liabilities and stockholders' equity $5,811,478 329,657 5,567,170 333,814
========== ========== ========== ==========
Levitt Corporation Spin-off Pro Forma
SUMMARY PRO FORMA STATEMENTS OF OPERATIONS
(Unaudited)
For the Six Months Ended June 30, 2003
-----------------------------------------------------------
BBX Levitt
As Originally As Originally BBX Levitt
(In thousands) Reported Reported Pro Forma Pro Forma
------------- ------------- --------- ---------
Net interest income $ 79,788 212 80,520 (58)
Provision for loan losses 2,340 -- 2,340 --
--------- --------- --------- ---------
Net interest income after provision for loan losses 77,448 212 78,180 (58)
--------- --------- --------- ---------
Non-interest income:
Service charges and other banking fees 28,152 -- 28,152 --
Investment banking Income 116,075 -- 116,075 --
Gains on sales of real estate and joint venture activities 34,303 31,266 2,315 31,266
Income from unconsolidated real estate subsidiary 2,438 1,806 -- 2,438
Gains (losses) on sales of assets and redemption of debt (1,279) -- (1,279) --
Other 6,715 1,119 5,606 1,119
--------- --------- --------- ---------
Total non-interest income 186,404 34,191 150,869 34,823
--------- --------- --------- ---------
Non-interest expense:
Employee compensation and benefits 136,048 8,390 127,658 8,390
Other 78,894 10,281 68,623 10,281
--------- --------- --------- ---------
Total non-interest expense 214,942 18,671 196,281 18,671
--------- --------- --------- ---------
Income before income taxes 48,910 15,732 32,768 16,094
Provision for income taxes 17,344 6,072 11,129 6,216
--------- --------- --------- ---------
Net income $ 31,566 9,660 21,640 9,879
========= ========= ========= =========
Levitt Corporation's obligations to BBX post spin-off Amount Maturity
------ --------
Existing Notes payable $ 30,000 1/1/2008
Dividend note payable 8,000 1/1/2008
Note associated with sale of Bluegreen stock 5,500 1/1/2004
--------- --------
Total obligations to BBX post spin-off $ 43,500
=========
Summary of spin-off transactions
- ---------------------------------------------------------------------------------------
Levitt declares a dividend of $8.0 million to it sole shareholder, Bancorp,
payable in a note at a rate of prime minus .25%. At the date of the
spin-off, Bancorp transfers its interest in Bluegreen Corporation for a
$5.5 million note from Levitt.
Ryan, Beck & Co., Inc. Business Segment
Consolidated Statements of Operations and Statistics - Unaudited
For the
For the Three Months Ended Six Months Ended
---------------------------------------------------------- ---------------------
(in thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002 6/30/2003 6/30/2002
--------- --------- ---------- --------- --------- --------- ---------
Revenues
Principal transactions $30,025 30,041 21,890 20,180 16,725 60,066 24,232
Investment banking 6,018 8,513 5,225 7,791 5,080 14,531 7,999
Commissions 22,219 19,889 22,608 22,224 16,386 42,108 19,418
Interest, dividends and other 6,019 5,531 5,680 5,909 4,912 11,550 5,750
------- ------- ------- ------- ------- ------- -------
Total operating revenues 64,281 63,974 55,403 56,104 43,103 128,255 57,399
------- ------- ------- ------- ------- ------- -------
Operating expenses
Compensation, benefits 43,985 44,290 38,669 39,553 30,959 88,275 40,673
Communication 4,643 4,265 3,538 3,523 3,314 8,908 4,228
Occupancy and equipment 3,192 3,371 2,988 3,526 2,719 6,563 3,542
Clearing fees 2,519 2,402 2,712 2,671 2,467 4,921 3,316
Acquisition related expenses -- -- -- 870 3,191 -- 3,191
Interest and other 7,719 6,898 5,172 5,843 4,870 14,617 6,633
------- ------- ------- ------- ------- ------- -------
Total operating expenses 62,058 61,226 53,079 55,986 47,520 123,284 61,583
Income (loss) from Ryan Beck
operations before extraordinary
item and cumulative accounting
change (pretax) 2,223 2,748 2,324 118 (4,417) 4,971 (4,184)
Extraordinary item, net of tax -- -- -- (61) 23,810 -- 23,810
Cumulative accounting change,
net of tax -- -- -- -- -- -- (1,768)
Business segment Income from
------- ------- ------- ------- ------- ------- -------
Ryan Beck operations (pretax) $ 2,223 2,748 2,324 57 19,393 4,971 17,858
======= ======= ======= ======= ======= ======= =======
Reconciliation of Operating and
business segment income
Business segment income $ 2,223 2,748 2,324 57 19,393 4,971 17,858
Acquisition related expenses -- -- -- 192 3,961 -- 3,961
Loss on mutual funds associated
with acquired --
Gruntal deferred compensation
plan -- -- -- 2,297 -- -- --
Extraordinary item, net of tax -- -- -- 61 (23,810) -- (23,810)
Cumulative accounting change,
net of tax -- -- -- -- -- -- 1,768
------- ------- ------- ------- ------- ------- -------
Operating income (loss) (pretax) $ 2,223 2,748 2,324 2,607 (456) 4,971 (223)
======= ======= ======= ======= ======= ======= =======
Statistics:
GAAP return on equity % 7.41 9.39 8.17 0.21 76.42 8.29 35.18
Operating return on equity 7.41 9.39 8.17 9.46 (1.80) 8.29 (0.44)
Compensation as a percent of
revenues 68.43 69.23 69.80 70.50 71.83 68.83 70.86
Commissions to total revenues 34.57 31.09 40.81 39.61 38.02 32.83 33.83
Principal transactions to total
revenues 46.71 46.96 39.51 35.97 38.80 46.83 42.22
Investment banking revenue to
total revenues 9.36 13.31 9.43 13.89 11.79 11.33 13.94
Condensed Statements of Financial Condition - Unaudited
As of
----------------------------------------------------------
(in thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002
--------- --------- ---------- --------- ---------
ASSETS
Cash and cash equivalents $ 1,193 3,615 3,133 6,882 15,225
Securities 224,405 154,319 186,454 178,774 244,000
Other investments 1,456 - 383 299 374
Property and equipment, net 4,095 4,037 4,113 4,031 3,567
Goodwill 6,184 7,389 7,351 7,351 7,351
Other assets 37,085 38,023 33,328 32,214 22,445
-------- ------- ------- ------- -------
Total assets $274,418 207,383 234,762 229,551 292,962
======== ======= ======= ======= =======
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Securities sold not yet purchased $ 34,968 49,760 38,003 33,034 68,325
Note payable 1,550 1,930 2,304 3,427 3,427
Note payable to BankAtlantic Bancorp 5,000 5,000 5,000 5,000 5,000
Due to clearing agent 112,410 36,982 78,791 81,774 94,312
Other liabilities 50,137 45,038 43,897 41,660 56,929
-------- ------- ------- ------- -------
Total liabilities 204,065 138,710 167,995 164,895 227,993
-------- ------- ------- ------- -------
Stockholder's equity 70,353 68,673 66,767 64,656 64,969
-------- ------- ------- ------- -------
Total liabilities and
stockholder's equity $274,418 207,383 234,762 229,551 292,962
======== ======= ======= ======= =======
Parent Company Business Segment Activities
Condensed Statements of Operations - Unaudited
For the
For the Three Months Ended Six Months Ended
------------------------------------------------------------ ----------------------
(in thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002 6/30/2003 6/30/2002
--------- --------- ---------- --------- --------- --------- ---------
Net interest (expense) $ (3,751) (3,191) (4,303) (4,311) (4,068) (6,942) (7,080)
Income from unconsolidated subsidiary 379 253 74 486 219 632 219
Gains on sales of assets -- 404 -- 506 312 404 3,330
Impairment writedown -- -- (342) (302) (18,157) -- (18,157)
Ryan Beck retention pool compensation
expense -- -- -- -- (519) -- (1,038)
Acquisition and conversion related charges -- -- 2,000 -- (2,000) -- (2,000)
Cost associated with debt redemption (1,648) -- (3,125) -- -- (1,648) --
Other income (expense) (817) (917) (446) (369) (138) (1,734) (552)
--------- --------- --------- --------- --------- --------- ---------
Loss from parent company activities
before a change in accounting principle (5,837) (3,451) (6,142) (3,990) (24,351) (9,288) (25,278)
Cumulative accounting change -- -- -- -- -- -- (13,339)
--------- --------- --------- --------- --------- --------- ---------
Loss from parent company business segment
activities (pretax) $ (5,837) (3,451) (6,142) (3,990) (24,351) (9,288) (25,278)
========= ========= ========= ========= ========= ========= =========
Reconciliation of Operating and business
segment income
Business segment income before cumulative
acctg change $ (5,837) (3,451) (6,142) (3,990) (24,351) (9,288) (25,278)
Impairment writedown -- -- 342 302 18,157 -- 18,157
Acquisition and conversion related charges -- -- (2,000) -- 2,000 -- 2,000
Cost associated with debt redemption 1,648 -- 3,125 -- -- 1,648 --
--------- --------- --------- --------- --------- --------- ---------
Operating loss (pretax) $ (4,189) (3,451) (4,675) (3,688) (4,194) (7,640) (5,121)
========= ========= ========= ========= ========= ========= =========
Condensed Statements of Financial Condition - Unaudited
As of
-------------------------------------------------------------
(in thousands) 6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002
--------- --------- ---------- --------- ---------
ASSETS
Cash $ 15,115 53,513 2,723 39,176 3,465
Securities 9,458 3,935 4,761 4,892 8,672
Notes receivable from subsidiaries 35,000 35,000 35,000 35,000 35,000
Investment in subsidiaries 672,695 657,398 647,169 633,908 623,293
Investment in unconsolidated subsidiary 4,157 3,718 3,363 3,475 2,938
Other assets 25,490 32,129 30,454 28,592 27,808
--------- --------- --------- --------- ---------
Total assets $ 761,915 785,693 723,470 745,043 701,176
========= ========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Subordinated debentures and notes
payable $ 263,318 302,735 251,737 282,725 250,158
Other liabilities 2,766 3,342 2,399 4,878 4,690
--------- --------- --------- --------- ---------
Total liabilities 266,084 306,077 254,136 287,603 254,848
--------- --------- --------- --------- ---------
Stockholders' equity: 495,831 479,616 469,334 457,440 446,328
--------- --------- --------- --------- ---------
Total liabilities and stockholders'
equity $ 761,915 785,693 723,470 745,043 701,176
========= ========= ========= ========= =========