-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ol78pmWeMMYTg6/2BpJzF/h9XJOQFiKhNWPDwj+FJhnw0Pu6on5vyCQCVG2PEY8y OtYMUMJlBfV921Esy+jv3A== 0000921768-03-000003.txt : 20030207 0000921768-03-000003.hdr.sgml : 20030207 20030207152057 ACCESSION NUMBER: 0000921768-03-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030205 ITEM INFORMATION: FILED AS OF DATE: 20030207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANKATLANTIC BANCORP INC CENTRAL INDEX KEY: 0000921768 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 650507804 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13133 FILM NUMBER: 03544651 BUSINESS ADDRESS: STREET 1: 1750 E SUNRISE BLVD CITY: FORT LAUDERDALE STATE: FL ZIP: 33304 BUSINESS PHONE: 9547605000 MAIL ADDRESS: STREET 1: 1750 EAST SUNRISE BOULEVARD CITY: FORT LAUDERVALE STATE: FL ZIP: 33304 8-K 1 decrel.txt FOURTH QUARTER PRESS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 --------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) of the SECURITIES EXCHANGE ACT OF 1934 --------------------------------- Date of Report February 5, 2003 (Date of earliest event reported) BankAtlantic Bancorp, Inc. (Exact name of registrant as specified in its Charter) Florida 34-027228 - -------------------------------------- ----------------------------- (State of other jurisdiction or (Commission File Number) incorporation or organization) 1750 East Sunrise Blvd. Ft. Lauderdale, Florida 33304 - -------------------------------------- ----------------------------- (Address of principal executive offices) (Zip Code) 65-0507804 -------------------------------------- (IRS Employer Identification No.) (954) 760-5000 (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Item 9. Regulation FD Disclosure On February 5, 2003, BankAtlantic Bancorp, Inc. (the "Company") issued a press release announcing its fourth quarter and year 2002 earnings as well as a restatement of its second and third quarter 2002 earnings. The Company is furnishing the press release as Exhibit 99.1 to this report pursuant to Item 9 of Form 8-K. The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 9 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information herein (including Exhibit 99.1). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BANKATLANTIC BANCORP, INC. By: /s/ JAMES A. WHITE ------------------------- James A. White Executive Vice President - Chief Financial Officer Dated: February 7, 2003 3 EXHIBIT INDEX Exhibit Description - ------- ----------- 99.1 Press Release dated February 5, 2003. EX-99 3 ex99.txt PRESS RELEASE Exhibit 99.1 Record Fourth Quarter Net Income of $18.1 Million -- An Increase of 72% Record Net Income for Year of $50.3 Million -- An Increase of 56% BankAtlantic Bancorp, Inc. (NYSE: BBX), the parent company of BankAtlantic, Levitt Companies and Ryan Beck & Co., today announced that Net Income increased 72% to $18.1 million for the fourth quarter of 2002, up from $10.5 million earned in the corresponding period in 2001. On a per share basis, Net Income for the quarter was $0.29, up from $0.19 in the corresponding 2001 quarter. Net Income for the year ended December 31, 2002 was a record $50.3 million, an increase of 56%, compared to $ 32.2 million in 2001. On a per share basis, Net Income for the year was $0.81, up from $0.65 during the corresponding 2001 period. (All per share amounts are diluted.) The Company also reported "operating net income" of $19.0 million ($0.30 per share) for the fourth quarter of 2002, an increase of 43% compared to $13.3 million ($0.24 per share) earned in the corresponding period in 2001. For the year ended December 31, 2002, "operating net income" was a record $61.3 million, an increase of 38%, compared to $44.5 million in 2001. On a per share basis, operating net income was $0.98 vs. $0.88 in 2001. As discussed more fully below, the Company is restating its results for the second and third quarters, 2002 downward by $0.02 and $0.01 per share, respectively. A more detailed summary of significant financial events, a reconciliation between Net Income (under Generally Accepted Accounting Principles ("GAAP")) and "operating net income," and extensive business segment financial data can be accessed on the Investor Relations page of the BankAtlantic website at the text link labeled "Supplemental Financials" (http://www.bankatlantic.com/ investorrelations/supplemental.asp ). Net Income as determined under GAAP is adjusted to "operating net income" by adjusting for itemized extraordinary and non-recurring items and by removing prior years' goodwill amortization. The Company believes that this adjustment is appropriate so as to allow investors to see financial information on the same basis as used by management in evaluating its various operations. Copies of the Supplemental Financials can also be received via fax or mail upon request by contacting BankAtlantic's Investor Relations department utilizing the contact information listed at the end of this release. BankAtlantic Bancorp Highlights (consolidated) Fourth Quarter, 2002 Compared to Fourth Quarter, 2001 * Net Income of $18.1 million vs. $10.5 million, an increase of 72% * Diluted earnings per share of $0.29 vs. $0.19, an increase of 53%. * "Operating net income" of $19.0 million vs. $13.3 million, an increase of 43%. * "Operating earnings per share" increased to $0.30 vs. $0.24, an increase of 25%. * "Operating return" on tangible assets was 1.39% vs. 1.16%. * "Operating return" on tangible equity was 21.03% vs. 16.25%. * Book value per share rose to $8.05 vs. $7.50. Full Year, 2002 Compared to Full Year, 2001 * Net Income of $50.3 million vs. $32.2 million, an increase of 56%. * Diluted earnings per share of $0.81 vs. $0.65, an increase of 25%. * "Operating net income" of $61.3 million vs. $44.5 million, an increase of 38%. * "Operating earnings per share" increased to $0.98 vs. $0.88, or 11%. * "Operating return" on tangible assets was 1.15% vs. 0.96%. * "Operating return" on tangible equity was 17.23% vs. 17.79%. Management Strategy: Management determined in 1999 that its objective of increasing shareholder value and attaining high performance status would be best achieved by increasing low cost deposits (demand, NOW and savings deposits), increasing non interest income, improving credit quality, reducing leverage in the holding company and simplifying our business mix. In 2000 and 2001, we significantly augmented our management group when we recruited senior executive officers from high performance institutions to join our executive management team in the capacity of Chief Financial Officer, Chief Credit Officer, Chief Community Banking Officer and Chief Information and Operations Officer. These officers have brought the depth of experience in financial controls, credit, sales management and technology that our bank needed to implement its strategy. In late 2001 and early 2002 BankAtlantic changed the landscape of banking in Florida through its "Florida's Most Convenient Bank" initiative. This initiative includes free checking, seven day branch banking, extended lobby hours, 24 hour customer service center and dozens of new product and customer service initiatives to brand BankAtlantic as the most unique, innovative, entrepreneurial and convenient bank in Florida. Management Commentary: Chairman of the Board and CEO Alan B. Levan commented, "This was a very significant year of accomplishment for our company. * As the result of this transformation of BankAtlantic, we were successful in increasing the percentage of low cost deposits (demand, NOW and savings deposits) to total deposits to 35%, from 27% at the end of last year. Excluding acquisitions, our deposit growth was 5%, or $111 million, in 2002. Of this increase, $212 million was in low cost deposits, which grew 35% year- over-year on a "same store" basis -- net of a reduction in higher cost certificates of deposit of $152 million. Across our system, we opened approximately 77,000 new demand and NOW accounts in 2002, a level approximately 134% higher than our experience in 2001. Our objective is to sustain a 15% rate of increase in low cost deposits and have built our 2003 business plans around such an increase. * Our increased marketing, personnel and other operating costs associated with the "Florida's Most Convenient Bank" initiative are approximately $6 - 7 million annually, a continuing investment that we expect to result in improved net interest margins and higher levels of fee income in coming periods. * As of 12/31/02, BankAtlantic is the largest Florida-based bank, with 72 full service branches. In addition, as part of the re-branding strategy, we have also committed to a program to open de novo branches, renovate others, and to relocate some so as to continue to position our company in the faster growing/ higher deposit level markets within our footprint. * BankAtlantic completed the acquisition of Community Savings, Ryan Beck acquired certain assets and related liabilities from Gruntal & Co., and Levitt Companies and the Company acquired a 40% interest in the outstanding common stock of Bluegreen Corporation (NYSE: BXG). * The Community Savings acquisition was a complete success and was integrated into the BankAtlantic network with minimal customer disruption or loss of business. * Ryan Beck also successfully integrated its Gruntal asset acquisition and we expect this move to serve as the foundation for an improved contribution to earnings from Ryan Beck in 2003. * The Bluegreen investment has proven to be a satisfactory contributor to our bottom-line, adding $5.3 million to pretax income in 2002. * We continued to experience a marked improvement in credit quality ratios. During the fourth quarter, the ratio of non-performing loans to total loans was 0.60% versus 0.88% the preceding quarter. The ratio of non- performing assets to total loans plus other assets declined from 1.10% in the third quarter to 0.83% at December 31, 2002. Net charge-offs to average loans for the fourth quarter were only 0.05% versus 0.43% for the third quarter. The allowance for loan and lease losses rose from 1.24% of total loans at September 30, 2002 to 1.40% at December 31, 2002. In addition, the coverage of the allowance for loan and lease losses to non-performing loans rose to 236%, up from 141% the preceding quarter." "As we look forward to 2003, we see several developments which will affect future profitability. First, the rollout of the "Florida's Most Convenient Bank" initiative comes with associated costs, which are being incurred before we see its full benefits. This will constrain near-term earnings growth in BankAtlantic. Second, the net interest margin narrowed from lower interest rates and prepayments during 2002, and we expect that it will continue to do so for the next few quarters. This narrowed margin, coupled with the expenses associated with the facilities renovation and relocation program, may limit the growth of BankAtlantic's contribution to 2003 consolidated results. We are confident, however, that the ultimate contribution of the growth in low cost deposits attracted through the "Florida's Most Convenient Bank" initiative will more than justify the near-term costs. Third, the performance of Ryan Beck during 2002 was a significant improvement, as it successfully integrated its asset purchase from Gruntal & Co. We expect continued improvement in Ryan Beck operations in 2003. Fourth, the contribution from Levitt in 2002 was excellent, and we are pleased to report that it was a record for that company." "During the third and fourth quarters, BankAtlantic Bancorp sold an aggregate of $65 million of trust preferred securities at floating rates with a current average of 4.72%. The net proceeds and other funds were used to retire outstanding debt of approximately $96 million with fixed interest rates ranging from 9% to 9.5%. With these transactions, we have largely completed our earlier-announced program to simplify the capital structure of our company, and in the process have significantly reduced its funding costs," Levan concluded. Restatement of Second, Third Quarters' Results: In connection with the Gruntal transaction, Ryan Beck assumed a nonqualified deferred compensation plan and certain mutual fund assets associated with the plan. With the prior concurrence of the Company's independent accountants, the Company accounted for these mutual fund assets based on accounting principles applicable to BankAtlantic Bancorp, and accordingly, the assets were accounted for as securities available for sale. The effect of this treatment was that changes in the fair value of the mutual fund assets were recorded in other comprehensive income in the equity section of the Company's balance sheet. Recently, the Company determined, with the concurrence of its independent accountants, that the accounting treatment for recording changes in the value of the plan's mutual funds during the second and third quarters was inappropriate, and that those assets were required to be treated in accordance with the specialized industry accounting principles applicable to broker-dealers, which require including changes in the fair value of the mutual funds as an adjustment to broker/dealer operations income in the Company's consolidated income statement. Based on such treatment, the Company has restated its results for the second and third quarters, 2002, to reflect non-cash unrealized losses associated with changes in the value of the plan's mutual funds of $1.9 million and $1.0 million, (pre tax), respectively. The impact of the foregoing is to reduce after tax income by $1.3 million ($0.02/share) and $0.5 million ($0.01/ share) for the second and third quarters, respectively. Commentary on Operations of Subsidiary Companies: BankAtlantic -- Fourth Quarter, 2002 Compared to Fourth Quarter, 2001 * "Operating pretax income" of $18.0 million vs. $19.1 million, a decrease of 6%. * "Operating return" on tangible assets was 0.93% vs. 1.14%. * "Operating return" on tangible equity was 12.3% vs. 14.8%. * Average loans grew to $3.7 billion, vs. $2.9 billion, an increase of 28%. * Average residential loans increased to $1.5 billion vs. $1.2 billion, an increase of 25%. * Average commercial real estate loans increased to $1.6 billion vs. $1.2 billion, an increase of 33%. * Average small business loans increased to $162 million vs. $100 million, an increase of 62%. * Annualized net charge offs declined to 0.05% of average loans, vs. 0.35% * Non-performing assets decreased to $29.9 million vs. $42.9 million * The net interest margin decreased 20 basis points, from 3.61% to 3.41%. * Non interest income increased to $17.1 million vs. $9.8 million, or 74%. BankAtlantic -- Full Year, 2002 Compared to Full Year, 2001 * "Operating pretax income" of $ 70.8 million vs. $71.3 million, a decrease of 0.7%. * "Operating return" on average tangible assets was 0.92% vs. 1.04%. * "Operating return" on average tangible equity was 12.5% vs. 13.8%. * Total average loans grew to $3.5 billion, vs. $3.0 billion, an increase of 17%. * Average residential loans increased to $1.4 billion vs. $1.3 billion, an increase of 8%. * Average commercial real estate loans increased to $1.5 billion vs. $1.1 billion, an increase of 36%. * Average small business loans increased to $146 million vs. $98 million, an increase of 49% * Annual average total deposits increased to $2.9 billion vs. $2.3 billion, an increase of 26%. Excluding acquisitions, deposits increased to $2.4 billion vs. $2.3 billion. * Average low cost deposits increased 51% to $865 million. Excluding acquisitions, low cost deposits increased to $706 million vs. $572 million. * Non-interest bearing demand deposits now constitute 16% of deposit balances, up from 13% last year. * Net charge offs declined to 0.57% of average loans, vs. 0.64%. * Non-performing assets decreased to $29.9 million vs. $42.9 million * The net interest margin decreased nine basis points to 3.52% from 3.61%. * Non interest income increased to $53.3 million vs. $37.5 million, or 42%. Levitt Companies -- Fourth Quarter, 2002 Compared to Fourth Quarter, 2001 * "Operating pre-tax income" increased to $10.8 million vs. $2.2 million in the corresponding quarter of 2001, an increase of 391%. This is primarily due to continued strength in home sales at Levitt and Sons, the partial sale of a land tract in Tampa by Core Communities, and earnings from the Bluegreen investment. * "Operating return" on equity was 24.8% vs. 8.0%. * Total revenue increased to $20.4 million vs. $12.2 million. * New homes contracted increased to 320 vs. 139, an increase of 130%. Levitt Companies -- Full Year, 2002 Compared to Full Year, 2001 * "Operating pretax income" increased to $25.8 million vs. $11.6 million in the prior year, an increase of 122%, due principally to the factors mentioned in the fourth quarter discussion above. * Operating return" on equity was 15.3% vs. 10.6%. * Total revenue increased to $56.7 million vs. $38.6 million. * New homes contracted increased to 1,041 vs. 900, an increase of 15.7%. Ryan Beck & Co. -- Fourth Quarter, 2002 Compared to Fourth Quarter, 2001 * "Operating pretax income" rose to $2.3 million vs. $282,000, an increase of 716%. * "Operating return" on tangible equity was 9.18% vs. 3.76%. * Total operating revenues increased to $55.4 million vs. $14.4 million, an increase of 285%. Ryan Beck & Co. -- Full Year, 2002 Compared to Full Year, 2001 * "Operating pretax income" rose to $4.7 million vs. a $1.6 million loss. * "Operating return" on tangible equity was 6.18%. * Total operating revenues increased to $168.9 million vs. $46.7 million, an increase of 262%. About BankAtlantic Bancorp: BankAtlantic Bancorp (NYSE: BBX) is a diversified financial services holding company and the parent company of BankAtlantic, Levitt Companies, and Ryan Beck & Co. Through these subsidiaries, BankAtlantic Bancorp provides a full line of products and services encompassing consumer and commercial banking, brokerage and investment banking, and real estate development. BankAtlantic Bancorp is one of the largest financial institutions headquartered in the State of Florida. About BankAtlantic: BankAtlantic, "Florida's Most Convenient Bank" is one of the largest financial institutions headquartered in Florida and provides a comprehensive offering of banking services and products via its broad network of community branches throughout Florida and its online banking division - BankAtlantic.com. BankAtlantic has 72 branch locations, operates more than 190 conveniently located ATMs and offers extended hours. Visit BankAtlantic's Website for further information at www.BankAtlantic.com. Seven-Day Branch Banking-Monday through Sunday Extended branch lobby hours are 8:30AM-5:00PM, Monday through Wednesday, and 8:30AM-8:00PM, Thursday and Friday. Extended drive-thru hours are 7:30AM-8:00PM, Monday through Wednesday, and 7: 30AM-8:00PM, Thursday and Friday. Saturday branch lobby hours are 8:30AM-3:00PM, and drive-thru hours are 7: 30AM-6:00PM Sunday branch lobby hours are 11:00AM-4:00PM, and drive-thru hours are 11: 00AM-4:00PM Levitt Companies is the parent company of Levitt and Sons and Core Communities. Levitt and Sons, America's oldest homebuilder and first to build planned suburban communities, currently develops single and multi-family homes for active adults and families throughout Florida. Core Communities develops master-planned communities in Florida, including its original and best-known, St. Lucie West -- a 4,600-acre community with 4,000 built and occupied homes, 150 businesses employing 5,000 people and a university campus. New master-planned developments include Westchester, now under development on Florida's Treasure Coast in St. Lucie County, featuring 5,600 residences, a commercial town center and a world-class corporate park. Ryan Beck & Co. is a full-service broker dealer engaging in underwriting, market making, distribution, and trading of equity and debt securities. The firm also provides money management services, general securities brokerage, including financial planning for the individual investor, consulting and financial advisory services to financial institutions and middle market companies. Ryan Beck & Co. also provides independent research in the financial institutions, energy, healthcare, technology, and consumer product industries. Ryan Beck & Co. has in excess of 575 financial consultants located in 36 offices nationwide. For further information, please visit our websites: www.BankAtlantic.com www.LevittandSons.com www.CoreCommunities.com www.LevittCommercial.com www.RyanBeck.com www.Cumber.com www.GMSgroup.com * To receive future news releases or announcements directly via email, please access the e-News banner on the Investor Relations page at www.BankAtlantic.com. BankAtlantic Bancorp Contact Info: Investor Relations: Leo Hinkley, Tel: (954) 760-5317, Fax: (954) 760-5415, or InvestorRelations@BankAtlantic.com Corporate Communications: Sharon Lyn, Tel: (954) 760-5402 or CorpComm@BankAtlantic.com Public Relations for BankAtlantic: Boardroom Communications, Tel: (954) 370-8999, Caren Berg, caren@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 the 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, the risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services; credit risks and loan losses, and the related sufficiency of the allowance for loan losses; the effects of, and changes in, trade, monetary and fiscal policies and laws, including but not limited to interest rate policies of the Board of Governors of the Federal Reserve System; adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) and the impact of such conditions on our activities; the impact of changes in financial services' laws and regulations ( including laws concerning taxes, banking, securities and insurance); technological changes; BankAtlantic's seven-day banking initiative and other growth initiatives are not successful or do not produce results which justify their costs; the impact of changes in accounting policies by the Securities and Exchange Commission; the impact of periodic testing of goodwill and other intangible assets for impairment, and with respect to the operations of Levitt Companies ("Levitt") and its real estate subsidiaries: the market for real estate generally and in the areas where Levitt has developments, the availability and price of land suitable for development, materials prices, labor costs, interest rates, environmental factors and governmental regulations; and the Company's success at managing the risks involved in the foregoing. Further, this press release contains forward-looking statements with respect to recent acquisitions, each of which are subject to risks and uncertainties, including the risk that the acquisitions could involve additional costs or that the future financial and operating performance of these acquisitions will not be advantageous. 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 ("SEC"). The Company cautions that the foregoing factors are not exclusive. 2 BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statement of Operations (unaudited) For The Three Months Ended (in thousands) 12/31/02 9/30/02 6/30/02 3/31/02 12/31/01 INTEREST INCOME: Interest and fees on loans $ 55,502 59,969 59,325 47,071 51,261 Interest on securities available for sale 8,214 10,322 11,804 12,066 13,052 Interest and dividends on investment and trading securities 11,657 13,214 11,925 8,701 8,318 Total interest income 75,373 83,505 83,054 67,838 72,631 INTEREST EXPENSE: Interest on deposits 14,256 16,089 17,106 15,326 16,725 Interest on advances from FHLB 15,960 15,856 15,676 14,920 15,635 Interest on short-term borrowed funds 744 2,305 2,113 1,384 2,878 Interest on long-term debt 7,457 7,306 6,853 4,608 4,171 Capitalized interest on real estate develop- ments (1,478) (1,688) (1,613) (1,218) (1,305) Total interest expense 36,939 39,868 40,135 35,020 38,104 NET INTEREST INCOME 38,434 43,637 42,919 32,818 34,527 Provision for loan losses 3,291 2,082 6,139 2,565 2,846 NET INTEREST INCOME AFTER PROVISION 35,143 41,555 36,780 30,253 31,681 NON-INTEREST INCOME: Service charges on deposits 9,245 6,684 5,687 4,863 4,782 Other service charges and fees 3,841 3,591 3,550 3,105 3,456 Broker/dealer revenue and other commissions 49,721 50,196 38,191 13,048 13,437 Securities gains (losses) (27) 2,483 3,083 3,039 2,832 Impairment of securities (342) (302) (18,157) -- (2,827) Gain (losses) on sales of loans 2,066 (230) 2 2 37 Income from real estate operations 18,355 8,852 12,466 11,977 12,001 Other 5,744 4,340 4,504 1,866 2,206 Total non- interest income 88,603 75,614 49,326 37,900 35,924 NON-INTEREST EXPENSES: Employee compensation and benefits 58,469 59,714 53,902 26,863 25,423 Occupancy and equipment 10,737 11,377 10,551 7,294 7,397 Amortization of intangible assets 453 453 454 -- 958 Write-down of real estate owned -- 1,400 7 57 (181) Other 25,957 23,694 23,640 13,526 16,822 Restructuring charges and write-downs 3,125 -- 1,007 -- -- Acquisition related charges -- (71) 3,922 1,074 -- Total non- interest expenses 98,741 96,567 93,483 48,814 50,419 Income (loss) before income taxes, extraordinary items and cumulative accounting change 25,005 20,602 (7,377) 19,339 17,186 Provision (benefit) for income taxes 6,939 6,068 (3,890) 6,759 6,685 Income (loss) before extraordinary items and cumulative accounting change 18,066 14,534 (3,487) 12,580 10,501 Extraordinary items, net of tax -- (61) 23,810 -- -- Cumulative accounting change, net of tax -- -- -- (15,107) -- GAAP net income (loss) (note 1) $ 18,066 14,473 20,323 (2,527) 10,501 Reconciliation of Operating and GAAP Net Income GAAP net income (loss) before extraordinary items and cumulative accounting change $ 18,066 14,534 (3,487) 12,580 10,501 Amortization of goodwill -- -- -- -- 958 Restructuring charges and write-downs -- -- 655 -- -- Costs associated with debt redemption 2,031 -- -- -- -- Loss on mutual funds associated with acquired Gruntal pension plan -- 1,493 -- -- -- Acquisition and conversion related charges (1,300) (487) 4,350 687 -- Impairment of securities available for sale 222 196 11,802 -- 1,838 Operating net income (note 2) $ 19,020 15,737 13,319 13,267 13,297 BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statement of Operations (unaudited) For The Year Ended (in thousands) 12/31/02 12/31/01 INTEREST INCOME: Interest and fees on loans $ 221,867 237,064 Interest on securities available for sale 42,406 52,813 Interest and dividends on investment and trading securities 45,497 35,741 Total interest income 309,770 325,618 INTEREST EXPENSE: Interest on deposits 62,777 85,668 Interest on advances from FHLB 62,412 60,472 Interest on short-term borrowed funds 6,546 24,270 Interest on long-term debt 26,224 22,938 Capitalized interest on real estate developments (5,997) (5,749) Total interest expense 151,962 187,599 NET INTEREST INCOME 157,808 138,019 Provision for loan losses 14,077 16,905 NET INTEREST INCOME AFTER PROVISION 143,731 121,114 NON-INTEREST INCOME: Service charges on deposits 26,479 16,372 Other service charges and fees 14,087 14,731 Broker/dealer revenue and other commissions 151,156 43,436 Securities gains (losses) 8,578 7,124 Impairment of securities (18,801) (3,527) Gain (losses) on sales of loans 1,840 60 Income from real estate operations 51,650 36,583 Other 16,454 8,494 Total non-interest income 251,443 123,273 NON-INTEREST EXPENSES: Employee compensation and benefits 198,948 95,098 Occupancy and equipment 39,959 28,491 Amortization of intangible assets 1,360 4,073 Write-down of real estate owned 1,464 117 Other 86,817 56,031 Restructuring charges and write-downs 4,132 6,955 Acquisition related charges 4,925 -- Total non-interest expenses 337,605 190,765 Income (loss) before income taxes, extraordinary items and cumulative accounting change 57,569 53,622 Provision (benefit) for income taxes 15,876 22,600 Income (loss) before extraordinary items and cumulative accounting change 41,693 31,022 Extraordinary items, net of tax 23,749 -- Cumulative accounting change, net of tax (15,107) 1,138 GAAP net income (loss) $ 50,335 32,160 Reconciliation of Operating and GAAP Net Income GAAP net income (loss) before extraordinary items and cumulative accounting change $ 41,693 31,022 Amortization of goodwill -- 4,073 Restructuring charges and write-downs 655 6,836 Costs associated with debt redemption 2,031 253 Loss on mutual funds associated with acquired Gruntal pension plan 1,493 -- Acquisition and conversion related charges 3,250 -- Impairment of securities available for sale 12,221 2,293 Operating net income (note 1) $ 61,343 44,476 BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statement of Financial Condition (unaudited) (In thousands, except share data) 12/31/02 12/31/01 ASSETS Cash and due from depository institutions $ 200,600 120,049 Securities purchased under resell agreements and federal funds 50,145 156 Investment securities and tax certificates (approximate fair value: $212,240 and $434,470) 212,240 428,718 Loans receivable, net 3,372,630 2,774,238 Securities available for sale (at fair value) 707,858 843,867 Trading securities (at fair value) 186,454 68,296 Accrued interest receivable 33,984 33,706 Real estate held for development and sale and joint ventures 252,087 178,273 Investment in unconsolidated real estate subsidiary 60,695 -- Office properties and equipment, net 92,699 61,685 Federal Home Loan Bank stock, at cost which approximates fair value 64,943 56,428 Deferred tax asset, net 35,316 17,879 Goodwill 78,611 39,859 Core deposit intangible asset 13,757 -- Other assets 58,992 31,332 Total assets $ 5,421,011 4,654,486 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $ 2,920,555 2,276,567 Advances from FHLB 1,297,170 1,106,030 Securities sold under agreements to repurchase 116,279 406,070 Federal funds purchased -- 61,000 Subordinated debentures, notes and bonds payable 193,816 131,428 Guaranteed preferred beneficial interests in Company's Junior Subordinated Debentures 180,375 74,750 Securities sold not yet purchased 38,003 38,431 Due to clearing agent 78,791 9,962 Other liabilities 126,688 114,575 Total liabilities 4,951,677 4,218,813 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 53,441,847 and 53,203,159 shares 534 532 Class B common stock, $.01 par value, authorized 45,000,000 shares; issued and outstanding 4,876,124 and 4,876,124 shares 49 49 Additional paid-in capital 252,699 251,202 Unearned compensation - restricted stock grants (1,209) (1,359) Retained earnings 213,692 170,349 Total stockholders' equity before accumulated other comprehensive income 465,765 420,773 Accumulated other comprehensive income 3,569 14,900 Total stockholders' equity 469,334 435,673 Total liabilities and stockholders' equity $ 5,421,011 4,654,486 BankAtlantic Bancorp, Inc. and Subsidiaries Summary of Selected Financial Data (unaudited) (in thousands except share data and ratios) For The Three Months Ended 12/31/02 9/30/02 6/30/02 3/31/02 12/31/01 Current Earnings: GAAP Net Income (loss) (note 1) $ 18,066 14,473 20,323 (2,527) 10,501 Operating Net Income (note 2) $ 19,020 15,737 13,319 13,267 13,297 Average Common Shares Outstanding: Basic 58,085,481 58,065,396 57,973,880 57,862,267 51,768,998 Diluted GAAP 64,188,382 64,320,448 57,973,880 65,207,468 57,859,579 Diluted Operating 64,188,382 64,320,448 64,747,784 65,207,468 57,859,579 Key GAAP Performance Ratios: Basic earnings (loss) per share $ 0.31 0.25 0.35 (0.04) 0.20 Diluted earnings (loss) per share * $ 0.29 0.23 0.35 (0.04) 0.19 Return on average tangible assets (note 3) % 1.32 1.02 1.47 (0.22) 0.91 Return on average tangible equity (note 3)% 19.98 16.96 24.63 (2.64) 12.83 Key Operating Performance Ratios: Basic earnings (loss) per share $ 0.33 0.27 0.23 0.23 0.26 Diluted earnings (loss) per share * $ 0.30 0.25 0.21 0.21 0.24 Operating return on average tangible assets (note 3) % 1.39 1.10 0.96 1.15 1.16 Operating return on average tangible equity (note 3)% 21.03 18.44 16.14 13.89 16.25 * Diluted earnings per share calculation adds back interest expense net of tax on convertible securities, if dilutive $ 440 440 440 440 441 Average Balance Sheet Data: Assets $ 5,552,458 5,796,782 5,620,134 4,656,653 4,637,305 Tangible Assets (note 3) $ 5,459,454 5,701,036 5,522,552 4,630,874 4,596,908 Loans $ 3,602,605 3,679,371 3,564,545 2,864,179 2,899,626 Invest- ments $ 1,207,985 1,392,785 1,367,312 1,332,292 1,330,722 Deposits and escrows $ 2,970,904 2,988,545 3,028,407 2,424,146 2,275,587 Stock- holders' Equity $ 456,579 441,177 427,740 411,455 373,351 Tangible Stock- holders' Equity (note 3) $ 361,681 341,355 330,042 382,161 327,325 Tangible equity to tangible assets % 6.62 5.99 5.98 8.25 7.12 BankAtlantic Bancorp, Inc. and Subsidiaries Summary of Selected Financial Data (unaudited) (in thousands except share data and ratios) For The Year Ended 12/31/02 12/31/01 Current Earnings: GAAP Net Income (loss) (note 1) $ 50,335 32,160 Operating Net Income (note 2) $ 61,343 44,476 Average Common Shares Outstanding: Basic 57,997,556 42,091,961 Diluted GAAP 64,400,725 54,313,104 Diluted Operating 64,400,725 54,313,104 Key GAAP Performance Ratios: Basic earnings (loss) per share $ 0.87 0.76 Diluted earnings (loss) per share * $ 0.81 0.65 Return on average tangible assets (note 3) % 0.94 0.69 Return on average tangible equity (note 3) % 14.14 12.87 Key Operating Performance Ratios: Basic earnings (loss) per share $ 1.06 1.06 Diluted earnings (loss) per share * $ 0.98 0.88 Operating return on average tangible assets (note 3) % 1.15 0.96 Operating return on average tangible equity (note 3) % 17.23 17.79 * Diluted earnings per share calculation adds back interest expense net of tax on convertible securities, if dilutive $ 1,760 3,397 Average Balance Sheet Data: Assets $ 5,410,030 4,695,327 Tangible Assets (note 3) $ 5,331,769 4,648,808 Loans $ 3,430,387 2,978,811 Investments $ 1,324,938 1,322,230 Deposits and escrows $ 2,854,870 2,320,266 Stockholders' Equity $ 434,380 304,392 Tangible Stockholders' Equity (note 3) $ 355,970 249,973 Tangible equity to tangible assets % 6.68 5.38 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 net income adjusted for goodwill amortization, goodwill impairment, core deposit amortization and any non-operating activities, 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. /CONTACT: Investor Relations, Leo Hinkley, +1-954-760-5317, or fax, +1-954- 760-5415, or InvestorRelations@BankAtlantic.com, or Corporate Communications, Sharon Lyn, +1-954-760-5402, or CorpComm@BankAtlantic.com, both of BankAtlantic Bancorp, Inc.; or Caren Berg, Boardroom Communications, +1-954-370-8999, caren@ boardroompr.com, for BankAtlantic Bancorp, Inc./ -----END PRIVACY-ENHANCED MESSAGE-----