BankAtlantic Bancorp Reports Financial Results For the Second Quarter, 2008
21% Improvement Compared to First Quarter, 2008
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--BankAtlantic Bancorp, Inc. (NYSE:BBX) today reported a net loss from continuing operations of ($19.4) million, or ($0.35) per diluted share for the quarter ended June 30, 2008, representing a 21.2% improvement compared to the net loss of ($24.6) million or ($0.44) per diluted share for the first quarter of 2008. BankAtlantic Bancorp (“the Company”) reported net income of $11.7 million, or $0.20 per diluted share, for the second quarter of 2007.
BankAtlantic, the banking subsidiary of BankAtlantic Bancorp, reported a net loss of ($14.1) million for the quarter ended June 30, 2008 compared to a net loss of ($17.0) million for the first quarter of 2008, a 17.2% improvement, and net income of $10.4 million for the second quarter of 2007. BankAtlantic’s second quarter 2008 pre-tax core operating earnings (defined as pre-tax earnings before the impact of loan loss provisions, impairment, restructuring and exit activities) was $20.3 million, versus $17.2 million in the comparable 2007 period, an 18% improvement. BankAtlantic’s second quarter 2008 pre-tax core operating earnings rose 36.8%, up from $14.8 million in the first quarter of 2008. Loan loss provisions, impairment, restructuring and exit activity expenses aggregated $43.8 million in the second quarter of 2008, $6.0 million in the second quarter of 2007 and $42.8 million in the first quarter of 2008.
BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “It is generally hard to find good news in bad news but this is one of those circumstances. While there is no question that many of our loyal customers are hurting -- and their pain causes us pain -- we are beginning to see early signals that segments of the environment are stabilizing and upcoming and meaningful government support for the economy is materializing. We are hopeful that the healing process has begun for our customers and for us. Our core operating earnings are showing marked improvement and our aggressive recognition of credit issues when the tidal wave hit last year appears to be paying off. Also, while we clearly experienced significant credit losses, we are pleased that our decisions over the last few years to avoid many of the investments that have severely hurt so many institutions has left us better off than many banks and thrifts who are not only dealing with the kind of core credit issues we have, but are also having to address the market that now exists for exotic assets.
“Our desirable position in this awful market is not an accident. During its 56 years serving Florida, BankAtlantic has experienced and successfully navigated through a number of economic and real estate downturns. Despite the noise in some quarters driven by misinformation, bad information, and simply irresponsible reporting disconnected from fact, BankAtlantic, with its strong core of retail customers, is well positioned to emerge from the current economic downturn stronger, leaner, wiser and more profitable.
“The reported earnings reflect the financial results of BankAtlantic Bancorp, BankAtlantic's holding company. In light of the current volume of misinformation being circulated, it is important to note that it is our subsidiary, BankAtlantic, which enjoys federal deposit insurance. Our investment in that subsidiary financial institution is critical to BankAtlantic Bancorp’s success. For the purpose of evaluating the safety and soundness of an insured entity, however, BankAtlantic is evaluated based on its own financials, independent from the consolidated financials of BankAtlantic Bancorp. We remain pleased to report on the financial condition of both our subsidiary as well as BankAtlantic Bancorp.
“As of June 30, 2008, BankAtlantic remains in every measurable category a ‘well capitalized’ institution under all regulatory standards. Its total risk based capital ratio is 11.77%, Tier 1 risk based capital ratio is 9.99%, tangible capital ratio is 6.82%, and core capital is 6.82%; all exceeding the ‘well capitalized’ standard for the respective capital ratios. Its ratio of non-performing loans to total loans is 1.75%, and its ratio of non-performing assets to its capital and reserves is 15.5%. While market conditions have driven those ratios higher than we would like, they are both better than industry averages today, and, we believe, represent a significant accomplishment considering the state of the Florida economy and the problems facing other institutions. BankAtlantic is sound, strong and has a long and bright future to look forward to, built on the high level of service it provides to its loyal customers in its dynamic retail network.
“BankAtlantic's residential lending practices have never included subprime, option-arm, negative amortization or similar products. We believe that is why BankAtlantic’s $2.0 billion Residential loan portfolio has experienced net losses that appear to be significantly below standard industry comparison. In addition, BankAtlantic’s investment portfolio does not include any commercial paper, collateralized debt obligations, structured investment vehicles, Fannie Mae or Freddie Mac equity or debt securities, or investments otherwise considered high-risk. The decisions to forego the potential profits earned by others on these types of investments have in the longer term proven wise.
“Early on, we recognized credit issues in certain segments of our loan portfolios. We believe that these issues are largely attributable to the economic downturn and the decline of the Florida residential real estate markets. We also believe that we have made significant progress since the start of the current real estate crisis through the second quarter of 2008. As is detailed below, net interest income, non-interest income and core operating earnings have all increased. Core deposits (DDA, NOW and Savings) have increased. Non-interest expenses have declined and charge-offs in commercial real estate have declined.
“BankAtlantic’s internal capital projections indicate continued ‘well capitalized’ ratios without additional capital, even if it is necessary to absorb additional charge-offs. Having said that, and despite our belief that our government has and will use the tools to keep our economy from slipping significantly further, we are also planning for a worst case economic scenario we hope will never occur. Simply put, notwithstanding what likely will happen, we must plan for what could happen and for the most dire of circumstances affecting our customers.
“The time to raise capital is when you might need it but do not then need it. This is that time. Accordingly, we have decided to pursue raising additional capital through a shareholder rights offering of Common Stock to the Company’s shareholders which we are publicly announcing today in a separate press release. Offering our stock directly to our existing shareholders at a discount to the market will give every shareholder the opportunity to participate and acquire shares on the same terms. We believe this is the fairest and most equitable approach for our current shareholders.
“We appreciate the support our company has enjoyed over the years from its customers, shareholders, and employees. As dark as it has been for the economy during this year, we have seen, survived and prospered through much worse. We will do so now as well, as we work to make certain that those who believe in the future of this company are rewarded for having done so.”
BankAtlantic Highlights:
BankAtlantic Performance:
Net Income – BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “Despite the losses associated with our loan portfolios, we have made significant progress in improving core operating earnings.
“Year-to-date, pre-tax core operating earnings, which exclude the impact of loan loss provisions and impairment, restructuring and exit activity, were $35.1 million versus $28.1 million at June 30, 2007, representing a 24.9% improvement. As stated above, the second quarter 2008 pre-tax core operating earnings were $20.3 million, a 36.8% improvement over $14.8 million reported for the first quarter of 2008. Loan loss provisions, impairment, restructuring, exit activity expenses and tax provisions, aggregated ($66.1) million and ($17.1) million for the six months ended June 30, 2008 and 2007, respectively, and ($34.3) million and ($31.8) million for the three months ended June 30, 2008 and March 31, 2008, respectively. Details for each period are provided in the supplementary financial statements included with this press release. We believe these improvements reflect management’s success in reducing operating expenses and improving profitability in the core business in spite of the challenges in the current economic environment.
Deposit Accounts and Balances – “Over 75% of BankAtlantic’s $3.9 billion in total deposits at June 30, 2008 is comprised of non-CD balances, which we believe speaks to the strength and stability of our deposit base and franchise. Total Bank core deposit balances, representing Demand, NOW and Savings accounts, increased $52.2 million year-to-date, compared to $109.6 million for the comparable 2007 period, which we believe is a result of the impact of the economic environment on our customers.
Net Interest Margin – “Net interest income for the second quarter of 2008 was $49.9 million compared to $48.0 million in the previous quarter and $50.9 million in the corresponding 2007 quarter. The tax equivalent net interest margin was 3.58% in the second quarter of 2008, up 21 basis points, compared to 3.37% in the first quarter of 2008, and 3.72% in the corresponding quarter of 2007. The decline from the 2007 quarter was due primarily to competitive pricing pressures in this interest rate environment and the impact of non-performing assets. Additionally, average earning assets decreased $99.8 million and $120.8 million compared to the first quarter of 2008 and the second quarter of 2007, respectively, due to our conscious decision to slow loan growth in support of capital preservation and credit risk management initiatives.
Non-interest income – “Non-interest income for the second quarter of 2008 was $36.7 million, a 3.3% increase over the first quarter of 2008 and essentially flat with the second quarter of 2007. Total non-interest income for the second quarter was 42% of total income. Approximately 67% of our non-interest income is generated directly by our deposit account base, representing what we believe is a consistent and stable source of income for BankAtlantic.
Non-interest expense – “We remain committed to a multi-year program to create a more efficient operating platform. Recurring non-interest expense in the quarter continued to show material improvement from prior periods, as we completed the early stages of this initiative. Year-to-date, excluding impairment, restructuring and exit activity charges of $5.8 million in 2008 and $3.7 million in 2007, non-interest expense improved $11.5 million or 7.8% from the 2007 year-to-date period. Excluding impairment, restructuring and exit activity charges of $1.1 million in the second quarter of 2007 and of $6.0 million in the second quarter of 2008, non-interest expense during the second quarter of 2008 was $66.4 million, a decline of $4.0 million or 5.7% from the comparable 2007 quarter. Excluding impairment, restructuring and exit activity recoveries of ($0.1) million in the first quarter of 2008 and charges of $6.0 million in the second quarter of 2008, non-interest expense during the second quarter of 2008 decreased $2.4 million or 3.4% from the first quarter of 2008. Total non-interest expense was $72.3 million in the second quarter of 2008, compared to $71.5 million in the second quarter of 2007 and $68.6 million in the first quarter of 2008.
“Through reductions in staff and normal attrition we have reduced headcount by 27.3% since January 2007. These expense reductions were achieved despite absorbing incremental direct expense, year-over-year, related to 31 new stores opened from 2005 to date and operating expenses associated with our recently sold Central Florida stores.
Credit Risk Management:
Credit - “BankAtlantic experienced net charge-offs of $22.8 million in the second quarter of 2008, representing a 51.6% improvement over first quarter 2008 net charge-offs. This was largely the result of the performance of our Commercial Real Estate portfolio, where net charge-offs for the second quarter of 2008 were $14.5 million ($13.8 million of which was related to one loan), an improvement of over $26.1 million compared to the $40.6 million charged-off in the first quarter of 2008. Non-accrual loans were re-appraised during the first half of this year and the valuation adjustments are reflected in these charge-offs and specific reserves. The quarter’s net charge-offs also included Consumer loans of $7.1 million, Residential loans of $0.8 million, and Small Business loans of $0.3 million. Commercial business loans did not have any charge-offs in this quarter or in the comparable 2007 period.
“The provision for loan loss in the second quarter of 2008 was $37.8 million, as we increased our allowance for loan losses to a total of $98.4 million (representing 2.21% of total loans), primarily reflecting additional specific reserves in our Commercial Real Estate portfolio related to recent valuation updates and increases in our Consumer portfolio reserves. The allowance coverage of total non-accrual loans was 126.34% at June 30, 2008, and the ratio of non-performing loans to total loans at June 30, 2008 was 1.75%.
Commercial Real Estate Loans – “The Bank’s Commercial Real Estate loan portfolio at June 30, 2008 totaled $1.3 billion, including the following loan categories which we believe have the most exposure to declines in the real estate market:
“Builder land bank loans: This category of 7 loans aggregates $64.0 million; 2 of the loans, totaling $17.6 million, are on non-accrual.
“Land acquisition and development loans: This category of 26 loans aggregates $172.3 million; one loan, totaling $3.2 million, is on non-accrual.
“Land acquisition, development and construction loans: This category of 18 loans aggregates $88.1 million; 3 of these loans, totaling $24.7 million, are on non-accrual.
“These non-accrual commercial real estate loans are reflected on the Bank’s financial statements at approximately 50% of their principal balances before charge-offs or specific reserves. Additionally, we would note that these three loan categories that we identified in the third quarter of 2007 have been the source for 84% of the existing non-accrual commercial real estate loan balances and 99.7% of commercial real estate charge-offs since the third quarter of 2007. Further, loans identified in the third quarter 2007 as non-accrual have been the source of 79.2% of the total charge-offs since that time. We expect continued pressure on this portfolio throughout 2008, including the possibility of additional non-accrual loans, provisions and charge-offs. However, we believe the current trends in our Commercial Real Estate portfolio appear to be stabilizing.
Purchased Residential Loans – “Our Purchased Residential loan portfolio was $2.0 billion at quarter-end, representing 44.4% of the Bank’s total loans. This portfolio consists of approximately 6,500 first mortgage loans secured by properties in every state of the nation. As we previously stated, our standard products in this portfolio have never included purchased or originated subprime, negative amortizing or option-arm loans. The portfolio is geographically diverse with 92% located outside of Florida, the weighted average FICO score of borrowers in this portfolio was 742 at the time of origination, the weighted average loan-to-value of the loans in this portfolio at the time of origination was 68.9%, and the original back end debt ratio was a weighted average of 33.1%. As of June 30, 2008, the average time to payment reset was 61 months. Quarter-end delinquencies, including non-accrual loans, were 1.33% of the unpaid principal balance, versus 1.17% in the previous quarter. Non-accrual balances in this portfolio increased to $16.7 million at June 30, 2008 from $13.2 million at March 31, 2008. Based on more recently obtained property valuations, the weighted average loan-to-value of the non-accrual loan balances on June 30, 2008 was 74.8%, and the year-to-date annualized charge-offs remain low at 0.16%. While this portfolio is experiencing greater pressure than in the past, we believe that it remains a strong performing portfolio.
Consumer Loans - “Our Consumer loan portfolio had outstanding balances of $734.4 million at quarter-end, with home equity loans representing 96.4% of this portfolio. None of our home equity loans have been purchased from others; 100% have been originated in our local markets with central underwriting. Approximately 19% of this portfolio is secured by first mortgages. The loans in this portfolio have an updated weighted average loan-to-value, inclusive of first mortgages, of 74.4%, and an updated weighted average Beacon score of borrowers of approximately 737. Total delinquencies in this portfolio, including non-accruals, at June 30, 2008 were 2.17% versus 1.76% at March 31, 2008. Non-accrual balances in this portfolio were essentially flat at $4.5 million at June 30, 2008 compared to $4.4 million at March 31, 2008. During the first half of 2008, we decreased our consumer loan available commitments by $122.7 million in an effort to reduce overall exposure. Notwithstanding our efforts, based on current economic conditions, we anticipate that we will continue to experience elevated levels of delinquencies and charge-offs in this portfolio during the balance of the year.
Capital Strength:
Capital – “At June 30, 2008, BankAtlantic’s Core, Tier I and Total Capital ratios were 6.82%, 9.99% and 11.77%, respectively, exceeding the regulatory well-capitalized thresholds of 5.0%, 6.0% and 10.0%. BankAtlantic’s ratio of non-performing assets to common equity plus reserves was 15.5% at June 30, 2008. BankAtlantic Bancorp contributed $35.0 million in capital to BankAtlantic during the second quarter of 2008, and has contributed $55.0 million of capital year-to-date, offsetting the impact of the losses and further strengthening the Bank’s already well-capitalized base.
“Florida remains one of the best banking markets in the country. We are positioned to take advantage of opportunities in this market as we emerge from this economic cycle with a more efficient operating platform and improved core operating earnings.” concluded Jarett S. Levan.
Parent:
Stifel Investment – BankAtlantic Bancorp’s Chairman and CEO, Alan B. Levan, further commented, “During the quarter, we completed the sale of all of our remaining shares of Stifel Financial Corp. common stock for proceeds of $15.7 million, representing a gain of $3.7 million. As a result of Stifel’s recent three for two stock split, we currently hold warrants to purchase 722,586 shares of Stifel Financial Corp. common stock at an exercise price of $24.00 per share. BankAtlantic Bancorp recorded a $4.5 million gain associated with the change in value of the warrants in the second quarter of 2008, versus the $6.1 million gain recorded in the second quarter of 2007.
Asset Workout Subsidiary – “As previously announced, during the first quarter of 2008, BankAtlantic Bancorp formed a wholly-owned asset workout subsidiary. BankAtlantic transferred approximately $101.5 million of non-accrual loans and $6.4 million in specific loan reserves to the workout subsidiary on March 31, 2008 in exchange for a cash payment of $94.8 million. 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 (the Parent company) consolidated results. These assets, as with all other assets and liabilities at BankAtlantic Bancorp, should not be combined with those of BankAtlantic when evaluating and comparing metrics for BankAtlantic as the insured financial institution.
“At June 30, 2008, the loans held by the workout subsidiary totaled $92.8 million with specific loan reserves of $7.7 million. During the second quarter, primarily as a result of updated valuations, these loans were charged-down by $8.2 million, and BankAtlantic Bancorp recorded a provision for loan losses of $9.4 million. Additionally, during the quarter, one loan for $2.4 million returned to accrual status. The breakdown of the non-accrual loans held by the Company’s asset workout subsidiary is as follows:
“Builder land bank loans: Four loans aggregating $29.0 million.
“Land acquisition and development loans: Four loans aggregating $19.5 million.
“Land acquisition, development and construction loans: Nine loans aggregating $29.3 million.
“Other Commercial real estate loans: Three loans aggregating $7.0 million.
“Commercial business loans: Three loans aggregating $5.6 million.
“These commercial real estate non-accrual loans are carried on BankAtlantic Bancorp’s books at approximately 63.3% of their principal balances prior to charge-offs or specific reserves. While BankAtlantic Bancorp may consider pursuing a possible joint venture or sale of its interests in the workout subsidiary in the future, there is no assurance this will occur.
BankAtlantic Bancorp:
Cash Dividend – “BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.005 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on July 3rd, 2008. This quarter’s dividend declaration marked BankAtlantic Bancorp’s 60th consecutive quarterly dividend payment,” concluded Alan B. Levan.
Financial Highlights:
Second Quarter, 2008 Compared to Second Quarter, 2007
BankAtlantic Bancorp - consolidated:
- (Loss) income from continuing operations of ($19.4) million versus income of $11.7 million
- Diluted (loss) earnings per share from continuing operations of ($0.35) versus $0.20
- Return on average tangible equity from continuing operations was (21.63%) versus 10.47%
- Book value per share was $7.27 versus $8.83
BankAtlantic:
- Business segment (loss) income was ($14.1) million versus income of $10.4 million
- Pre-tax operating earnings (pre-tax loss before impact of provision for loan losses, impairments, restructuring and exit activities of $43.8 million for the 2008 quarter and $6.0 million for the 2007 quarter) was $20.3 million versus $17.2 million
- Over 40,000 new core deposit accounts opened
- Return on average tangible assets was (0.94%) versus 0.68%
- Return on average tangible equity was (12.06%) versus 8.26%
- Tax equivalent net interest margin decreased to 3.58% versus 3.72%
- Non-interest income remained flat at $36.7 million
- Non-interest expense was $66.4 million versus $70.4 million, a decrease of 5.70%, before the impairment, restructuring and exit activities of $6.0 million in 2008 and $1.1 million in 2007
Second Quarter, 2008 Compared to First Quarter, 2008
BankAtlantic Bancorp - consolidated:
- (Loss) from continuing operations of ($19.4) million versus ($24.6) million
- Diluted (loss) per share from continuing operations of ($0.35) versus ($0.44)
- Return on average tangible equity from continuing operations was (21.63%) versus (25.73%)
- Book value per share was $7.27 versus $7.73
BankAtlantic:
- Business segment (loss) was ($14.1) million versus ($17.0) million
- Pre-tax operating earnings (pre-tax loss before impact of provision for loan losses, impairments, restructuring and exit activities of $43.8 million for the second quarter and $42.8 million for the first quarter) was $20.3 million versus $14.8 million
- Return on average tangible assets was (0.94%) versus (1.12%)
- Return on average tangible equity was (12.06%) versus (14.52%)
- Tax equivalent net interest margin increased to 3.58% versus 3.37%
- Non-interest income was $36.7 million versus $35.6 million
- Non-interest expense was $66.4 million versus $68.7 million, a decrease of 3.43%, before the impairment, restructuring and exit activities of $6.0 million in the second quarter and a $0.1 million recovery during the first quarter
Year-to-date 2008 Compared to Year-to-date 2007
BankAtlantic Bancorp - consolidated:
- (Loss) income from continuing operations was ($43.9) million versus income of $9.5 million
- Diluted (loss) earnings per share from continuing operations was ($0.78) versus $0.16
- Return on average tangible equity from continuing operations was (23.75%) versus 4.24%
BankAtlantic:
- Business segment (loss) income was ($31.0) million versus income of $11.0 million
- Pre-tax operating earnings (pre-tax loss before impact of provision for loan losses, impairments, restructuring and exit activities of $86.5 million year-to-date 2008 and $16.1 million year-to-date 2007) was $35.1 million versus $28.1 million
- Nearly 103,000 new core deposit accounts opened
- Return on average tangible assets was (1.03%) versus 0.36%
- Return on average tangible equity was (13.29%) versus 4.39%
- Non-interest income was $72.3 million versus $71.7 million, an increase of 0.77%
- Non-interest expense, before the $5.8 million and $3.7 million of impairment, restructuring and exit activities during the 2008 and 2007 periods, was $135.1 million versus $146.6 million, a decrease of 7.8%
Financial data is provided in the supplemental financial tables included with this release for both BankAtlantic (bank only) as well as the Parent- BankAtlantic Bancorp. Additionally, BankAtlantic financial information is provided quarterly to the OTS through Thrift Financial Reports, available to the public through the OTS and FDIC websites.
BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Wednesday, July 30, 2008 at 11:00 a.m. (Eastern Time).
Teleconference Call Information:
To access the teleconference call in the U.S. and Canada, the toll free number to call is 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number 54889866.
A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Wednesday, August 13, 2008. To access the replay option in the U.S. and Canada, the toll free number to call is 1-800-642-1687. International calls for the replay may be placed at 706-645-9291. The replay digital PIN number for both domestic and international calls is 54889866.
Webcast Information:
Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visit www.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Webcast” navigation link, or go directly to http://www.visualwebcaster.com/event.asp?id=49472. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Wednesday, August 13, 2008.
BankAtlantic Bancorp’s second quarter, 2008 financial results press release and financial summary, as well as the Supplemental Financials (a detailed summary of significant financial events and extensive business segment financial data), will be available on its website at: www.BankAtlanticBancorp.com.
- To view the financial summary, access the “Investor Relations” section and click on the “Quarterly Financials” navigation link.
- To view the Supplemental Financials, access the “Investor Relations” section and click on the “Supplemental Financials” navigation link.
Copies of BankAtlantic Bancorp’s second quarter, 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.
About BankAtlantic Bancorp:
BankAtlantic Bancorp (NYSE:BBX) is a bank holding company and the parent company of BankAtlantic.
About BankAtlantic:
BankAtlantic, "Florida's Most Convenient Bank", with over $6 billion in assets and more than 100 stores is one of the largest financial institutions headquartered in Florida. BankAtlantic provides a full line of products and services encompassing consumer and commercial banking. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, Totally Free Online Banking & Bill Pay, a 7-Day Customer Service Center, Totally Free 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:
-- 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 |
| Leo Hinkley, |
| Senior Vice President, Investor Relations Officer |
|
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: |
| Boardroom Communications |
| Caren Berg |
| Phone: 954-370-8999, Fax: 954-370-8892 |
|
Email: cberg@boardroompr.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. When used in this press release and in any documents incorporated by reference herein, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify certain of such forward-looking statements. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of BankAtlantic Bancorp, Inc. (“the Company”) and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services, including the impact of a continued downturn in the economy or a recession on our business generally, as well as the ability of our borrowers to service their obligations and on 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 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”) and conditions specifically in that market sector; 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; the successful completion of a sale or joint venture of BankAtlantic Bancorp’s interests in the newly formed asset workout subsidiary in the future, 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 capital markets and the impact of such conditions on our activities, the value of our assets and on the ability of our borrowers to service their debt obligations; BankAtlantic’s seven-day banking initiatives and other growth, marketing or advertising initiatives not resulting in continued growth of core deposits or increasing average balances of new deposit accounts or producing results which do not justify their costs; the success of our expense discipline initiative and the ability to achieve additional cost savings; the success of BankAtlantic’s new store expansion program, and achieving growth and profitability at the stores in the time frames anticipated, if at all; and the impact of periodic testing of goodwill, deferred tax assets and other assets for impairment. 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.
|
BankAtlantic Bancorp, Inc. and Subsidiaries |
|||||||||||||||||||||
| Summary of Selected Financial Data (unaudited) | |||||||||||||||||||||
| For the Six | |||||||||||||||||||||
| For the Three Months Ended | Months Ended | ||||||||||||||||||||
| 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | 6/30/2008 | 6/30/2007 | |||||||||||||||
| Earnings (in thousands): | |||||||||||||||||||||
| Net (loss) income from continuing operations | $ | (19,363 | ) | (24,564 | ) | (9,926 | ) | (29,610 | ) | 11,728 | (43,927 | ) | 9,524 | ||||||||
| Net (loss) income | $ | (19,363 | ) | (23,443 | ) | (9,926 | ) | (29,610 | ) | 11,620 | (42,806 | ) | 17,336 | ||||||||
| Average Common Shares Outstanding (in thousands): | |||||||||||||||||||||
| Basic | 56,117 | 56,097 | 56,054 | 56,832 | 59,190 | 56,107 | 59,908 | ||||||||||||||
| Diluted | 56,117 | 56,097 | 56,054 | 56,832 | 59,929 | 56,107 | 60,922 | ||||||||||||||
| Key Performance Ratios | |||||||||||||||||||||
| Basic (loss) earnings per share from continuing operations | $ | (0.35 | ) | (0.44 | ) | (0.18 | ) | (0.52 | ) | 0.20 | (0.78 | ) | 0.16 | ||||||||
| Diluted (loss) earnings per share from continuing operations | $ | (0.35 | ) | (0.44 | ) | (0.18 | ) | (0.52 | ) | 0.20 | (0.78 | ) | 0.16 | ||||||||
| Basic (loss) earnings per share | $ | (0.35 | ) | (0.42 | ) | (0.18 | ) | (0.52 | ) | 0.20 | (0.76 | ) | 0.29 | ||||||||
| Diluted (loss) earnings per share | $ | (0.35 | ) | (0.42 | ) | (0.18 | ) | (0.52 | ) | 0.19 | (0.76 | ) | 0.28 | ||||||||
|
Return on average tangible assets from continuing operations (note 1) |
% | (1.26 | ) | (1.57 | ) | (0.63 | ) | (1.85 | ) | 0.74 | (1.41 | ) | 0.30 | ||||||||
|
Return on average tangible equity from continuing operations (note 1) |
% | (21.63 | ) | (25.73 | ) | (9.96 | ) | (27.45 | ) | 10.47 | (23.75 | ) | 4.24 | ||||||||
| Average Balance Sheet Data (in millions): | |||||||||||||||||||||
| Assets | $ | 6,235 | 6,350 | 6,354 | 6,479 | 6,407 | 6,292 | 6,423 | |||||||||||||
|
Tangible assets (note 1) |
$ | 6,160 | 6,274 | 6,278 | 6,402 | 6,330 | 6,217 | 6,344 | |||||||||||||
| Loans | $ | 4,571 | 4,642 | 4,654 | 4,693 | 4,678 | 4,607 | 4,644 | |||||||||||||
| Investments | $ | 1,138 | 1,191 | 1,172 | 1,244 | 1,194 | 1,164 | 1,168 | |||||||||||||
| Deposits and escrows | $ | 3,907 | 3,949 | 3,960 | 3,984 | 4,048 | 3,928 | 3,975 | |||||||||||||
| Stockholders' equity | $ | 435 | 459 | 471 | 506 | 525 | 447 | 527 | |||||||||||||
|
Tangible stockholders' equity (note 1) |
$ | 358 | 382 | 399 | 431 | 448 | 370 | 449 | |||||||||||||
| Note: | |||||||||||||||||||||
|
(1) |
Average tangible assets is defined as average total assets less average goodwill and core deposit intangibles. |
||||||||||||||||||||
| Average tangible equity is defined as average total stockholders' equity less average goodwill, core deposit intangibles and other comprehensive income. | |||||||||||||||||||||
| BankAtlantic Bancorp, Inc. and Subsidiaries | ||||||
| Consolidated Statements of Financial Condition (unaudited) | ||||||
| June 30, | December 31, | |||||
| (in thousands, except share data) | 2008 | 2007 | ||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 308,554 | 124,574 | |||
| Securities available for sale (at fair value) | 759,023 | 925,363 | ||||
| Investment securities (approximate fair value: $2,036 and $44,688) | 2,036 | 39,617 | ||||
| Financial instruments accounted for at fair value | 13,257 | 10,661 | ||||
| Tax certificates net of allowance of $4,010 and $3,289 | 416,084 | 188,401 | ||||
| Loans receivable, net of allowance for loan losses of $106,126 and $94,020 | 4,442,529 | 4,524,188 | ||||
| Federal Home Loan Bank stock, at cost which approximates fair value | 85,657 | 74,003 | ||||
| Real estate held for development and sale | 23,254 | 33,741 | ||||
| Real estate owned | 20,298 | 17,216 | ||||
| Office properties and equipment, net | 222,484 | 243,863 | ||||
| Goodwill and other intangible assets | 75,200 | 75,886 | ||||
| Other assets | 146,599 | 121,304 | ||||
| Total assets | $ | 6,514,975 | 6,378,817 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Liabilities: | ||||||
| Deposits | ||||||
| Demand | $ | 891,142 | 824,211 | |||
| NOW | 939,714 | 900,233 | ||||
| Savings | 526,303 | 580,497 | ||||
| Money market | 621,899 | 624,390 | ||||
| Certificates of deposit | 955,921 | 1,024,074 | ||||
| Total deposits | 3,934,979 | 3,953,405 | ||||
| Advances from FHLB | 1,657,036 | 1,397,044 | ||||
| Securities sold under agreements to repurchase | 53,209 | 58,265 | ||||
| Federal funds purchased and other short term borrowings | 75,000 | 108,975 | ||||
| Subordinated debentures and bonds payable | 26,287 | 26,654 | ||||
| Junior subordinated debentures | 294,195 | 294,195 | ||||
| Other liabilities | 66,063 | 80,958 | ||||
| Total liabilities | 6,106,769 | 5,919,496 | ||||
| Stockholders' equity: | ||||||
| Common stock | 562 | 561 | ||||
| Additional paid-in capital | 218,922 | 216,692 | ||||
| Retained earnings | 192,780 | 236,150 | ||||
| Total stockholders' equity before accumulated other comprehensive (loss) income | ||||||
| 412,264 | 453,403 | |||||
| Accumulated other comprehensive (loss) income | (4,058 | ) | 5,918 | |||
| Total stockholders' equity | 408,206 | 459,321 | ||||
| Total liabilities and stockholders' equity | $ | 6,514,975 | 6,378,817 | |||
| BankAtlantic Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||
| Consolidated Statements of Operations (unaudited) | ||||||||||||||||||||
| For the Six | ||||||||||||||||||||
| For the Three Months Ended | Months Ended | |||||||||||||||||||
| (in thousands) |
6/30/2008 |
3/31/2008 |
12/31/2007 |
9/30/2007 |
6/30/2007 |
6/30/2008 |
6/30/2007 |
|||||||||||||
| INTEREST INCOME: | ||||||||||||||||||||
| Interest and fees on loans | $ | 61,583 | 68,136 | 74,415 | 80,082 | 79,914 | 129,719 | 159,501 | ||||||||||||
| Interest on securities available for sale | 10,553 | 10,490 | 8,075 | 4,835 | 4,628 | 21,043 | 9,189 | |||||||||||||
| Interest on tax exempt securities | - | 14 | 1,266 | 3,838 | 3,800 | 14 | 7,596 | |||||||||||||
| Interest on tax certificates | 4,926 | 3,565 | 3,939 | 4,589 | 3,768 | 8,491 | 7,777 | |||||||||||||
| Interest and dividends on taxable investments | 1,425 | 1,527 | 1,727 | 1,552 | 1,665 | 2,952 | 3,252 | |||||||||||||
| Total interest income | 78,487 | 83,732 | 89,422 | 94,896 | 93,775 | 162,219 | 187,315 | |||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||||||
| Interest on deposits | 14,508 | 18,593 | 21,443 | 22,558 | 21,473 | 33,101 | 40,475 | |||||||||||||
| Interest on advances from FHLB | 12,433 | 14,946 | 17,443 | 18,987 | 18,103 | 27,379 | 36,826 | |||||||||||||
| Interest on short-term borrowed funds | 725 | 1,279 | 2,068 | 2,940 | 2,010 | 2,004 | 4,565 | |||||||||||||
| Interest on long-term debt | 5,220 | 6,283 | 6,650 | 6,652 | 6,136 | 11,503 | 12,250 | |||||||||||||
|
Total interest expense |
32,886 | 41,101 | 47,604 | 51,137 | 47,722 | 73,987 | 94,116 | |||||||||||||
| NET INTEREST INCOME | 45,601 | 42,631 | 41,818 | 43,759 | 46,053 | 88,232 | 93,199 | |||||||||||||
| Provision for loan losses | 47,247 | 42,888 | 9,515 | 48,949 | 4,917 | 90,135 | 12,378 | |||||||||||||
| NET INTEREST INCOME AFTER PROVISION | (1,646 | ) | (257 | ) | 32,303 | (5,190 | ) | 41,136 | (1,903 | ) | 80,821 | |||||||||
| NON-INTEREST INCOME: | ||||||||||||||||||||
| Service charges on deposits | 24,466 | 24,014 | 26,342 | 25,894 | 25,808 | 48,480 | 50,403 | |||||||||||||
| Other service charges and fees | 7,121 | 7,433 | 7,171 | 7,222 | 7,524 | 14,554 | 14,557 | |||||||||||||
| Securities activities, net | 8,965 | (4,738 | ) | (3,163 | ) | 1,207 | 8,813 | 4,227 | 10,368 | |||||||||||
| Gain on sales of loans | 129 | 76 | 68 | 88 | 138 | 205 | 338 | |||||||||||||
| Income from unconsolidated subsidiaries | 287 | 1,275 | 337 | 348 | 669 | 1,562 | 1,815 | |||||||||||||
| Other | 2,908 | 2,579 | 1,690 | 1,863 | 2,532 | 5,487 | 4,755 | |||||||||||||
| Total non-interest income | 43,876 | 30,639 | 32,445 | 36,622 | 45,484 | 74,515 | 82,236 | |||||||||||||
| NON-INTEREST EXPENSE: | ||||||||||||||||||||
| Employee compensation and benefits | 33,181 | 35,155 | 37,922 | 34,258 | 37,908 | 68,336 | 78,998 | |||||||||||||
| Occupancy and equipment | 16,172 | 16,386 | 17,026 | 16,954 | 15,927 | 32,558 | 31,871 | |||||||||||||
| Advertising and business promotion | 3,662 | 4,895 | 5,659 | 4,276 | 4,209 | 8,557 | 10,067 | |||||||||||||
| Professional fees | 2,219 | 2,760 | 3,067 | 2,542 | 1,368 | 4,979 | 3,081 | |||||||||||||
| Check losses | 2,101 | 2,718 | 3,547 | 3,341 | 2,731 | 4,819 | 4,588 | |||||||||||||
| Supplies and postage | 1,282 | 1,006 | 1,502 | 1,159 | 1,632 | 2,288 | 3,485 | |||||||||||||
| Telecommunication | 1,331 | 1,502 | 1,348 | 1,286 | 1,556 | 2,833 | 2,937 | |||||||||||||
| Impairment, restructuring and exit activities | 5,952 | (115 | ) | 5,681 | 11,005 | 1,122 | 5,837 | 3,675 | ||||||||||||
| Other | 7,839 | 5,726 | 6,720 | 6,858 | 6,724 | 13,565 | 13,968 | |||||||||||||
| Total non-interest expense | 73,739 | 70,033 | 82,472 | 81,679 | 73,177 | 143,772 | 152,670 | |||||||||||||
|
(Loss) income from continuing operations before income taxes |
(31,509 | ) | (39,651 | ) | (17,724 | ) | (50,247 | ) | 13,443 | (71,160 | ) | 10,387 | ||||||||
| (Benefit) provision for income taxes | (12,146 | ) | (15,087 | ) | (7,798 | ) | (20,637 | ) | 1,715 | (27,233 | ) | 863 | ||||||||
| (Loss) income from continuing operations | (19,363 | ) | (24,564 | ) | (9,926 | ) | (29,610 | ) | 11,728 | (43,927 | ) | 9,524 | ||||||||
| Discontinued operations | - | 1,121 | - | - | (108 | ) | 1,121 | 7,812 | ||||||||||||
| Net (loss) income | $ | (19,363 | ) | (23,443 | ) | (9,926 | ) | (29,610 | ) | 11,620 | (42,806 | ) | 17,336 | |||||||
| BankAtlantic Bancorp, Inc. and Subsidiaries | |||||||||||||||||
| Consolidated Average Balance Sheet (unaudited) | |||||||||||||||||
| For the Three Months Ended | |||||||||||||||||
|
(in thousands except percentages and per share data) |
6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | ||||||||||||
| Loans: | |||||||||||||||||
| Residential real estate | $ | 2,086,519 | 2,162,421 | 2,196,552 | 2,245,138 | 2,215,606 | |||||||||||
| Commercial real estate | 1,292,627 | 1,307,236 | 1,317,578 | 1,346,842 | 1,384,405 | ||||||||||||
| Consumer | 743,123 | 722,327 | 697,764 | 662,320 | 635,370 | ||||||||||||
| Commercial business | 129,332 | 131,770 | 132,677 | 134,390 | 147,026 | ||||||||||||
| Small business | 319,096 | 318,588 | 309,322 | 304,388 | 295,483 | ||||||||||||
| Total Loans | 4,570,697 | 4,642,342 | 4,653,893 | 4,693,078 | 4,677,890 | ||||||||||||
| Investments - taxable | 1,137,831 | 1,186,441 | 1,036,382 | 841,486 | 795,156 | ||||||||||||
| Investments - tax exempt | - | 4,314 | 135,961 | 402,482 | 399,160 | ||||||||||||
| Total interest earning assets | 5,708,528 | 5,833,097 | 5,826,236 | 5,937,046 | 5,872,206 | ||||||||||||
| Goodwill and core deposit intangibles | 75,401 | 75,718 | 76,068 | 76,419 | 76,784 | ||||||||||||
| Other non-interest earning assets | 450,999 | 440,961 | 451,397 | 465,427 | 457,817 | ||||||||||||
| Total assets | $ | 6,234,928 | 6,349,776 | 6,353,701 | 6,478,892 | 6,406,807 | |||||||||||
|
Tangible assets (note 1) |
$ | 6,159,527 | 6,274,058 | 6,277,633 | 6,402,473 | 6,330,023 | |||||||||||
| Deposits: | |||||||||||||||||
| Demand deposits | $ | 878,864 | 854,534 | 885,006 | 922,293 | 989,259 | |||||||||||
| Savings | 552,094 | 566,448 | 589,966 | 611,862 | 605,939 | ||||||||||||
| NOW | 941,964 | 926,381 | 830,898 | 792,462 | 782,018 | ||||||||||||
| Money market | 617,013 | 609,062 | 638,041 | 660,925 | 677,545 | ||||||||||||
| Certificates of deposit | 917,133 | 992,078 | 1,015,940 | 996,415 | 993,458 | ||||||||||||
| Total deposits | 3,907,068 | 3,948,503 | 3,959,851 | 3,983,957 | 4,048,219 | ||||||||||||
| Short-term borrowed funds | 148,407 | 163,124 | 182,134 | 225,034 | 151,656 | ||||||||||||
| FHLB advances | 1,389,835 | 1,423,746 | 1,368,242 | 1,398,245 | 1,344,855 | ||||||||||||
| Long-term debt | 320,469 | 320,650 | 321,885 | 318,762 | 293,489 | ||||||||||||
| Total borrowings | 1,858,711 | 1,907,520 | 1,872,261 | 1,942,041 | 1,790,000 | ||||||||||||
| Other liabilities | 34,023 | 34,673 | 50,554 | 46,805 | 43,465 | ||||||||||||
| Total liabilities | 5,799,802 | 5,890,696 | 5,882,666 | 5,972,803 | 5,881,684 | ||||||||||||
| Stockholders' equity | 435,126 | 459,080 | 471,035 | 506,089 | 525,123 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 6,234,928 | 6,349,776 | 6,353,701 | 6,478,892 | 6,406,807 | |||||||||||
| Other comprehensive income (loss) in stockholders' equity | 1,679 | 1,496 | (3,562 | ) | (1,765 | ) | 377 | ||||||||||
|
Tangible stockholders' equity (note 1) |
$ | 358,046 | 381,866 | 398,529 | 431,435 | 447,962 | |||||||||||
| Net Interest Margin | 3.18 | % | 2.91 | % | 2.95 | % | 3.11 | % | 3.27 | % | |||||||
| Period End | |||||||||||||||||
| Total loans, net | $ | 4,442,529 | 4,483,305 | 4,524,188 | 4,586,625 | 4,618,690 | |||||||||||
| Total assets | 6,514,975 | 6,390,690 | 6,378,817 | 6,485,593 | 6,495,047 | ||||||||||||
| Total stockholders' equity | 408,206 | 433,896 | 459,321 | 471,889 | 512,724 | ||||||||||||
| Class A common shares outstanding | 51,256,912 | 51,228,719 | 51,196,175 | 51,168,201 | 53,212,871 | ||||||||||||
| Class B common shares outstanding | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | 4,876,124 | ||||||||||||
| Cash dividends | 281,431 | 280,524 | 281,130 | 2,315,458 | 2,386,145 | ||||||||||||
| Common stock cash dividends per share | 0.005 | 0.005 | 0.005 | 0.0412 | 0.0410 | ||||||||||||
| Closing stock price | 1.76 | 3.91 | 4.10 | 8.67 | 8.61 | ||||||||||||
| High stock price for the quarter | 4.15 | 5.80 | 9.60 | 9.25 | 11.25 | ||||||||||||
| Low stock price for the quarter | 1.56 | 3.32 | 2.89 | 7.50 | 8.38 | ||||||||||||
| Book value per share | 7.27 | 7.73 | 8.19 | 8.42 | 8.83 | ||||||||||||
| Bank Operations Business Segment | |||||||||||||||||||||
| Condensed Statements of Operations (Unaudited) | |||||||||||||||||||||
| For the Six | |||||||||||||||||||||
| For the Three Months Ended | Months Ended | ||||||||||||||||||||
| (in thousands) | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | 6/30/2008 | 6/30/2007 | ||||||||||||||
| Net interest income | $ | 49,923 | 48,005 | 47,291 | 49,235 | 50,914 | 97,928 | 102,984 | |||||||||||||
| Provision for loan losses | 37,801 | 42,888 | 9,515 | 48,949 | 4,917 | 80,689 | 12,378 | ||||||||||||||
|
Net interest income after provision for loan losses |
12,122 | 5,117 | 37,776 | 286 | 45,997 | 17,239 | 90,606 | ||||||||||||||
| Non-interest income | |||||||||||||||||||||
| Service charges on deposits | 24,466 | 24,014 | 26,342 | 25,894 | 25,808 | 48,480 | 50,403 | ||||||||||||||
| Other service charges and fees | 7,121 | 7,433 | 7,171 | 7,222 | 7,524 | 14,554 | 14,557 | ||||||||||||||
| Securities activities, net | 1,960 | 341 | 861 | 613 | 212 | 2,301 | 833 | ||||||||||||||
| Loss from real estate operations | (281 | ) | - | - | - | - | (281 | ) | (12 | ) | |||||||||||
| Gain on sales of loans | 129 | 76 | 68 | 88 | 138 | 205 | 338 | ||||||||||||||
| Income from unconsolidated subsidiaries | 147 | 1,113 | 163 | 182 | 509 | 1,260 | 874 | ||||||||||||||
| Gain (loss) on the sale of office properties, net | 40 | (61 | ) | (564 | ) | (362 | ) | (42 | ) | (21 | ) | (195 | ) | ||||||||
| Other non-interest income | 3,146 | 2,637 | 2,249 | 2,224 | 2,535 | 5,783 | 4,933 | ||||||||||||||
| Total non-interest income | 36,728 | 35,553 | 36,290 | 35,861 | 36,684 | 72,281 | 71,731 | ||||||||||||||
| Non-interest expense | |||||||||||||||||||||
| Employee compensation and benefits | 32,118 | 34,243 | 37,221 | 34,244 | 36,628 | 66,361 | 77,292 | ||||||||||||||
| Occupancy and equipment | 16,171 | 16,383 | 17,023 | 16,951 | 15,923 | 32,554 | 31,865 | ||||||||||||||
| Advertising and business promotion | 3,564 | 4,861 | 5,596 | 4,221 | 4,079 | 8,425 | 9,867 | ||||||||||||||
| Professional fees | 2,004 | 2,260 | 2,969 | 2,444 | 1,233 | 4,264 | 2,853 | ||||||||||||||
| Check losses | 2,101 | 2,718 | 3,547 | 3,341 | 2,731 | 4,819 | 4,588 | ||||||||||||||
| Supplies and postage | 1,281 | 1,003 | 1,441 | 1,158 | 1,629 | 2,284 | 3,479 | ||||||||||||||
| Telecommunication | 1,326 | 1,496 | 1,342 | 1,283 | 1,548 | 2,822 | 2,927 | ||||||||||||||
| Impairment, restructuring and exit activities | 5,952 | (115 | ) | 5,681 | 11,005 | 1,122 | 5,837 | 3,675 | |||||||||||||
| Other | 7,820 | 5,777 | 6,761 | 6,848 | 6,629 | 13,597 | 13,746 | ||||||||||||||
| Total non-interest expense | 72,337 | 68,626 | 81,581 | 81,495 | 71,522 | 140,963 | 150,292 | ||||||||||||||
|
|
|||||||||||||||||||||
|
(Loss) income from bank operations business segment before income taxes |
(23,487 | ) | (27,956 | ) | (7,515 | ) | (45,348 | ) | 11,159 | (51,443 | ) | 12,045 | |||||||||
| (Benefit) provision for income taxes | (9,428 | ) | (10,975 | ) | (4,143 | ) | (18,236 | ) | 754 | (20,403 | ) | 1,001 | |||||||||
|
Net (loss) income from bank operations business segment |
$ | (14,059 | ) | (16,981 | ) | (3,372 | ) | (27,112 | ) | 10,405 | (31,040 | ) | 11,044 | ||||||||
| Bank Operations Business Segment | |||||||||||||||||||||
| Condensed Statements of Condition and Statistics (Unaudited) | |||||||||||||||||||||
| For the Six | |||||||||||||||||||||
|
|
For the Three Months Ended | Months Ended | |||||||||||||||||||
|
(in thousands except percentages and per share data)
|
6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | 6/30/2008 | 6/30/2007 | ||||||||||||||
| Statistics: | |||||||||||||||||||||
| Tax equivalent: | |||||||||||||||||||||
| Average earning assets | $ | 5,569,690 | 5,669,461 | 5,653,913 | 5,750,192 | 5,690,488 | 5,619,575 | 5,678,563 | |||||||||||||
| Average interest bearing liabilities | $ | 4,610,344 | 4,712,913 | 4,656,897 | 4,718,381 | 4,590,419 | 4,661,628 | 4,571,041 | |||||||||||||
| Average tangible assets | $ | 6,002,728 | 6,085,957 | 6,080,693 | 6,194,549 | 6,127,470 | 6,044,342 | 6,110,115 | |||||||||||||
| Average tangible equity | $ | 466,141 | 467,952 | 481,495 | 507,963 | 504,091 | 467,044 | 503,672 | |||||||||||||
| Borrowings to deposits and borrowings | % | 31.61 | 28.74 | 28.74 | 29.89 | 28.74 | 31.61 | 28.74 | |||||||||||||
| Tax equivalent: | |||||||||||||||||||||
| Yield on earning assets | % | 5.61 | 5.88 | 6.33 | 6.71 | 6.70 | 5.75 | 6.70 | |||||||||||||
| Cost of interest-bearing liabilities | % | 2.46 | 3.02 | 3.54 | 3.80 | 3.70 | 2.74 | 3.67 | |||||||||||||
| Interest spread | % | 3.15 | 2.86 | 2.79 | 2.91 | 3.00 | 3.01 | 3.03 | |||||||||||||
| Net interest margin | % | 3.58 | 3.37 | 3.41 | 3.59 | 3.72 | 3.48 | 3.74 | |||||||||||||
| Performance: | |||||||||||||||||||||
| Efficiency ratio | % | 83.48 | 82.13 | 97.61 | 95.77 | 81.65 | 82.82 | 86.02 | |||||||||||||
|
Efficiency ratio before impairment, restructuring and exit activities
|
% | 76.61 | 82.27 | 90.81 | 82.84 | 80.37 | 79.39 | 83.92 | |||||||||||||
| Return on average tangible assets | % | (0.94 | ) | (1.12 | ) | (0.22 | ) | (1.75 | ) | 0.68 | (1.03 | ) | 0.36 | ||||||||
| Return on average tangible equity | % | (12.06 | ) | (14.52 | ) | (2.80 | ) | (21.35 | ) | 8.26 | (13.29 | ) | 4.39 | ||||||||
| Earning assets repricing: | |||||||||||||||||||||
| Percent of earning assets that have fixed rates | % | 52 | 53 | 54 | 54 | 54 | |||||||||||||||
| Percent of earning assets that have variable rates | % | 48 | 47 | 46 | 46 | 46 | |||||||||||||||
| One year Gap | % | 1 | 3 | (3 | ) | (9 | ) | (7 | ) | ||||||||||||
| Regulatory Capital Ratios | |||||||||||||||||||||
| Total risk-based capital | % | 11.77 | 11.83 | 11.63 | 11.93 | 12.34 | |||||||||||||||
| Tier I risk-based capital | % | 9.99 | 10.04 | 9.85 | 10.17 | 10.62 | |||||||||||||||
| Core capital | % | 6.82 | 6.87 | 6.94 | 7.20 | 7.48 | |||||||||||||||
| Bank Operations Business Segment | |||||||||||
| Condensed Statements of Financial Condition (Unaudited) | |||||||||||
| As of | |||||||||||
| (in thousands) | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | ||||||
| ASSETS | |||||||||||
| Loans receivable, net | $ | 4,357,541 | 4,388,334 | 4,524,188 | 4,586,625 | 4,618,690 | |||||
| Investment securities | 501,741 | 237,031 | 262,404 | 482,666 | 507,593 | ||||||
| Available for sale securities | 755,651 | 790,570 | 789,917 | 570,624 | 563,318 | ||||||
| Goodwill | 70,489 | 70,489 | 70,489 | 70,489 | 70,489 | ||||||
| Core deposit intangible asset | 4,711 | 5,047 | 5,397 | 5,747 | 6,097 | ||||||
| Other assets | 679,015 | 720,485 | 509,567 | 557,951 | 505,874 | ||||||
| Total assets | $ | 6,369,148 | 6,211,956 | 6,161,962 | 6,274,102 | 6,272,061 | |||||
| LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||||||
| Deposits | |||||||||||
| Demand | $ | 891,142 | 912,862 | 824,211 | 896,094 | 971,260 | |||||
| NOW | 939,714 | 928,275 | 900,233 | 801,289 | 769,994 | ||||||
| Savings | 526,303 | 571,456 | 580,497 | 613,010 | 608,791 | ||||||
| Money market | 621,899 | 618,045 | 624,390 | 656,218 | 666,820 | ||||||
| Certificates of deposit | 955,921 | 964,976 | 1,024,074 | 1,002,197 | 1,000,278 | ||||||
| Total deposits | 3,934,979 | 3,995,614 | 3,953,405 | 3,968,808 | 4,017,143 | ||||||
| Advances from Federal Home Loan Bank | 1,657,036 | 1,477,040 | 1,397,044 | 1,417,047 | 1,397,051 | ||||||
| Short term borrowings | 135,200 | 108,009 | 170,433 | 245,895 | 193,937 | ||||||
| Long term debt | 26,287 | 26,467 | 26,654 | 29,125 | 29,397 | ||||||
| Other liabilities | 65,655 | 65,351 | 79,147 | 74,539 | 67,747 | ||||||
| Total liabilities | 5,819,157 | 5,672,481 | 5,626,683 | 5,735,414 | 5,705,275 | ||||||
| Stockholder's equity | 549,991 | 539,475 | 535,279 | 538,688 | 566,786 | ||||||
| Total liabilities and stockholder's equity | $ | 6,369,148 | 6,211,956 | 6,161,962 | 6,274,102 | 6,272,061 | |||||
| Bank Operations Business Segment | |||||||||||||||||||
| Average Balance Sheet - Yield / Rate Analysis | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| June 30, 2008 | June 30, 2007 | ||||||||||||||||||
|
|
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||
|
(in thousands) |
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
| Loans: | |||||||||||||||||||
| Residential real estate | $ | 2,086,519 | 28,469 | 5.46 | % | $ | 2,215,606 | 30,181 | 5.45 | % | |||||||||
| Commercial real estate | 1,194,902 | 16,979 | 5.68 | 1,384,405 | 28,646 | 8.28 | |||||||||||||
|
Consumer |
743,123 | 8,273 | 4.45 | 635,370 | 11,836 | 7.45 | |||||||||||||
| Commercial business | 127,229 | 2,224 | 6.99 | 147,026 | 3,306 | 8.99 | |||||||||||||
| Small business | 319,095 | 5,521 | 6.92 | 295,483 | 5,944 | 8.05 | |||||||||||||
| Total loans | 4,470,868 | 61,466 | 5.50 | 4,677,890 | 79,913 | 6.83 | |||||||||||||
| Investments - tax exempt | - | - | - | 398,435 | 5,846 |
|
(1) |
5.87 | |||||||||||
| Investments - taxable | 1,098,822 | 16,615 | 6.05 | 614,163 | 9,506 | 6.19 | |||||||||||||
| Total interest earning assets | 5,569,690 | 78,081 | 5.61 | % | 5,690,488 | 95,265 | 6.70 | % | |||||||||||
| Goodwill and core deposit intangibles | 75,401 | 76,784 | |||||||||||||||||
| Other non-interest earning assets | 433,038 | 436,982 | |||||||||||||||||
| Total Assets | $ | 6,078,129 | $ | 6,204,254 | |||||||||||||||
| Deposits: | |||||||||||||||||||
| Savings | $ | 552,094 | 1,284 | 0.94 | % | $ | 605,940 | 3,401 | 2.25 | % | |||||||||
| NOW | 941,964 | 1,898 | 0.81 | 782,018 | 1,749 | 0.90 | |||||||||||||
| Money market | 617,013 | 2,427 | 1.58 | 677,545 | 4,789 | 2.84 | |||||||||||||
| Certificates of deposit | 917,133 | 8,899 | 3.90 | 993,458 | 11,535 | 4.66 | |||||||||||||
| Total interest bearing deposits | 3,028,204 | 14,508 | 1.93 | 3,058,961 | 21,474 | 2.82 | |||||||||||||
| Short-term borrowed funds | 166,031 | 788 | 1.91 | 157,230 | 2,091 | 5.33 | |||||||||||||
| Advances from FHLB | 1,389,835 | 12,433 | 3.60 | 1,344,855 | 18,102 | 5.40 | |||||||||||||
| Long-term debt | 26,274 | 429 | 6.57 | 29,373 | 638 | 8.71 | |||||||||||||
| Total interest bearing liabilities | 4,610,344 | 28,158 | 2.46 | 4,590,419 | 42,305 | 3.70 | |||||||||||||
| Demand deposits | 878,906 | 989,434 | |||||||||||||||||
| Non-interest bearing other liabilities | 45,770 | 50,800 | |||||||||||||||||
| Total Liabilities | 5,535,020 | 5,630,653 | |||||||||||||||||
| Stockholder's equity | 543,109 | 573,601 | |||||||||||||||||
|
Total liabilities and stockholder's equity |
$ | 6,078,129 | $ | 6,204,254 | |||||||||||||||
|
Net tax equivalent interest income/net interest spread |
$ | 49,923 | 3.15 | % | $ | 52,960 | 3.00 | % | |||||||||||
| Tax equivalent adjustment | - | (2,046 | ) | ||||||||||||||||
| Net interest income | 49,923 | 50,914 | |||||||||||||||||
| Margin | |||||||||||||||||||
|
Interest income/interest earning assets |
5.61 | % | 6.70 | % | |||||||||||||||
|
Interest expense/interest earning assets |
2.03 | 2.98 | |||||||||||||||||
| Net interest margin (tax equivalent) | 3.58 | % | 3.72 | % | |||||||||||||||
| (1) The tax equivalent basis is computed using a 35% tax rate. | |||||||||||||||||||
| Bank Operations | |||||||||||||||||||
| Average Balance Sheet - Yield / Rate Analysis | |||||||||||||||||||
| For the Six Months Ended | |||||||||||||||||||
| June 30, 2008 | June 30, 2007 | ||||||||||||||||||
| ( in thousands) | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | |||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||
| Loans: | |||||||||||||||||||
| Residential real estate | $ | 2,124,470 | 58,121 | 5.47 | % | $ | 2,198,636 | 59,692 | 5.43 | % | |||||||||
| Commercial real estate | 1,249,615 | 36,522 | 5.85 | 1,402,559 | 58,139 | 8.29 | |||||||||||||
| Consumer | 732,725 | 18,825 | 5.14 | 621,001 | 23,201 | 7.47 | |||||||||||||
| Commercial business | 129,659 | 4,772 | 7.36 | 151,562 | 6,793 | 8.96 | |||||||||||||
| Small business | 317,838 | 11,362 | 7.15 | 290,522 | 11,676 | 8.04 | |||||||||||||
| Total loans | 4,554,307 | 129,602 | 5.69 | 4,664,280 | 159,501 | 6.84 | |||||||||||||
| Investments - tax exempt | - | - | - | 397,410 | 11,648 |
|
(1) |
5.86 | |||||||||||
| Investments - taxable | 1,065,268 | 31,837 | 5.98 | 616,873 | 19,202 | 6.23 | |||||||||||||
| Total interest earning assets | 5,619,575 | 161,439 | 5.75 | % | 5,678,563 | 190,351 | 6.70 | % | |||||||||||
| Goodwill and core deposit intangibles | 75,560 | 76,960 | |||||||||||||||||
| Other non-interest earning assets | 424,767 | 431,552 | |||||||||||||||||
| Total Assets | $ | 6,119,902 | $ | 6,187,075 | |||||||||||||||
| Deposits: | |||||||||||||||||||
| Savings | $ | 559,271 | 3,302 | 1.19 | % | $ | 567,899 | 5,971 | 2.12 | % | |||||||||
| NOW | 934,173 | 4,581 | 0.99 | 776,548 | 3,261 | 0.85 | |||||||||||||
| Money market | 613,038 | 5,585 | 1.83 | 664,039 | 8,727 | 2.65 | |||||||||||||
| Certificates of deposit | 954,605 | 19,633 | 4.14 | 977,674 | 22,517 | 4.64 | |||||||||||||
| Total deposits | 3,061,087 | 33,101 | 2.17 | 2,986,160 | 40,476 | 2.73 | |||||||||||||
| Short-term borrowed funds | 167,386 | 2,113 | 2.54 | 180,478 | 4,723 | 5.28 | |||||||||||||
| Advances from FHLB | 1,406,790 | 27,379 | 3.91 | 1,374,900 | 36,826 | 5.40 | |||||||||||||
| Long-term debt | 26,365 | 918 | 7.00 | 29,503 | 1,265 | 8.65 | |||||||||||||
| Total interest bearing liabilities | 4,661,628 | 63,511 | 2.74 | 4,571,041 | 83,290 | 3.67 | |||||||||||||
| Demand deposits | 866,834 | 989,490 | |||||||||||||||||
| Non-interest bearing other liabilities | 47,298 | 53,495 | |||||||||||||||||
| Total Liabilities | 5,575,760 | 5,614,026 | |||||||||||||||||
| Stockholder' | |||||||||||||||||||