EX-99.1 2 g10114exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 Press Release
 

(BANKATLANTIC LOGO)
BankAtlantic Bancorp Reports
Financial Results for the Third Quarter 2007
     FORT LAUDERDALE, Florida — October 25, 2007 —BankAtlantic Bancorp, Inc. (NYSE: BBX) today announced a net loss of ($29.6) million, or ($0.52) per diluted share for the quarter ended September 30, 2007, compared to net income of $2.5 million, or $0.04 per diluted share, for the third quarter of 2006. The company recorded a loss from continuing operations of ($29.6) million, or ($0.52) per diluted share for the 2007 quarter, compared to income from continuing operations of $7.4 million, or $0.12 per diluted share, for the 2006 quarter.
     Net loss for the nine months of 2007 was ($12.3) million, or ($0.21) per diluted share, compared to net income of $17.1 million, or $0.27 per diluted share, for the comparable 2006 period. Income (loss) from continuing operations for the nine months of 2007 was ($20.1) million, or ($0.34) per diluted share, compared to $25.8 million, or $0.41 per diluted share, for the comparable 2006 period.
     BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “This quarter’s financial results reflect the continuing impact of the current economic environment on our business, particularly the deteriorating residential real estate market, contributing to higher non-performing asset levels, increased loan loss reserves, further valuation impairment of real estate owned and held for sale, and net interest margin compression. The impact of the decline in the Florida residential real estate market has been significant. We do not anticipate that market conditions will improve in the near-term and expect that the negative factors impacting this quarter’s results may continue to affect us in the fourth quarter and into 2008.
     “While our results this quarter were disappointing, our balance sheet remains strong. We remain well capitalized and have significant liquidity. Additionally, as detailed later in this release, we have decided to slow our store expansion program in support of our commitment to manage expenses in the current economic environment.

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BankAtlantic Highlights
     Net Income — “For the third quarter of 2007, BankAtlantic’s net loss was ($27.1) million, down from net income of $9.8 million in the comparable 2006 quarter. As discussed in detail later in this release, the decline was driven by increased loan loss provisions and impairments of real estate owned and held for sale. Other factors contributing to the decline included net interest margin compression and costs associated with opening new stores, offset in part by an increase in non-interest income.
     Credit Quality — “Non-performing loans increased from $21.8 million at June 30, 2007 to $165.4 million at September 30, 2007 resulting primarily from the placement of eleven commercial real estate loans totaling $148.7 million on non-accrual status. As a result, the ratio of non-performing loans to total loans increased from 0.47% at June 30, 2007 to 3.53% at September 30, 2007 and the ratio of non-performing assets to total loans plus other assets increased from 0.94% at June 30, 2007 to 3.74% at September 30, 2007. The Bank’s loss experience for the quarter ended September 30, 2007 was a net charge-off of $11.3 million compared to a net recovery of $0.2 million for the quarter ended September 30, 2006. Included in the $11.3 million net charge-off was $8.8 million related to the write-down of one ‘builder land bank loan’ and consumer net charge-offs of $1.6 million, representing primarily home equity lines of credit. (‘Builder land bank loans’ are characterized as loans made to borrowers with agreements to sell the underlying collateral to national and local home builders pursuant to option contracts.)
     “The rapid deterioration in the Florida real estate market and the associated increase in non-performing loans required an increase in our allowance for loan losses at quarter-end. The provision for loan loss in the third quarter of 2007 was $48.9 million or 1.04% of average loans for the third quarter of 2007 versus $0.3 million or 0.01% of average loans for the third quarter of 2006. The allowance for loan losses increased to $92.4 million (1.97% of total loans) at September 30, 2007 compared to $42.5 million (0.91% of total loans) at September 30, 2006. This quarter’s provision included $27.8 million in specific reserves on nine non-performing loans aggregating $104.8 million. The ratio of the allowance for loan losses less specific reserves, to non-performing loans without specific reserves stood at 107% at September 30, 2007 versus 129% at September 30, 2006. Characteristics of our Commercial, Residential and Consumer loan portfolios are detailed below.

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     Commercial Loans — “The Bank’s Commercial Real Estate loan portfolio at September 30, 2007 totaled $1.3 billion. This portfolio consists of retail, industrial, and residential acquisition, development and construction loans. As we have previously disclosed, most of these loans are personally guaranteed by the borrower, BankAtlantic’s interest in any of these loans generally does not exceed $20.0 million, and single borrower concentrations are limited to $40.0 million.
     “The categories within this ‘Commercial Residential’ portfolio where we believe we have exposure to the declines in the real estate market are as follows:
•   Builder land bank loans: This category of 13 loans aggregates $149.3 million, of which five loans totaling $81.1 million are non-accrual and an additional three loans totaling $28.7 million were considered classified assets at quarter-end.
 
•   Land acquisition and development loans: This category of 37 loans aggregates $218.5 million, of which three loans totaling $13.2 million are non-accrual and an additional five loans totaling $19.7 million were considered classified assets at quarter end.
 
•   Land acquisition, development and construction loans: This category of 24 loans aggregates $165.3 million, of which seven loans totaling $62.0 million are non-accrual and an additional four loans totaling $41.9 million were considered classified assets at quarter end.
     “We are monitoring this portfolio very closely due to rapidly changing conditions impacting both the underlying collateral values and the projected repayment sources in the current environment. We do not anticipate that the housing market will improve in the near-term, and accordingly, additional downgrades and additional provisions relating to this portfolio may be required.
     Purchased Residential Loans— “Our Purchased Residential Mortgage portfolio was $2.2 billion at quarter-end, representing approximately 47% of the Bank’s total loans. As we have previously indicated, this portfolio does not include sub-prime or negative amortizing loans, the average FICO score in this portfolio was 741 at the time of origination, and the average original loan-to-value of the portfolio was 68%. Quarter-end delinquencies, including non-accrual loans, were 0.50% of the unpaid principal balance, and our loss history on this portfolio over the past twelve months is approximately 0.01% of the average outstanding balances.

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     Consumer Loans - “Our Consumer loan portfolio was $671.7 million at quarter-end, with total delinquencies at 1.34%. Home equity loans represent $647.5 million of this portfolio. At origination, these loans had average loan-to-values, inclusive of first mortgages, of 67%, and Beacon scores on average of 705.”
     Store Expansion Program — BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “While we remain committed to our store expansion program in the long-term and continue to believe that new stores remain an attractive way to grow our franchise, we have decided to slow the pace of our new store growth for 2008, based on market conditions. We anticipate completing our previously announced goal of opening 20 stores in 2007, and opening 6 new stores in 2008. Growth of new stores beyond this level in 2008 will be dependent upon the economic environment and corporate profitability.
     “During the third quarter of 2007, we opened seven new stores, including our 100th store, bringing the total to 13 stores opened to date in 2007. We have opened a total of 30 new stores since January 1, 2005, which as of September 30, 2007 had balances of $222.3 million in core deposits and $343.5 million in total deposits. Core deposits include DDA, NOW and savings accounts. Since the third quarter of 2006, the new stores have generated net growth of $164.8 million in core deposits, $233.2 million of total deposits, and over 82,000 of new core deposit accounts. However, because of the time required for newly opened stores to breakeven, the expenses associated with BankAtlantic’s store expansion program negatively impacted BankAtlantic’s third quarter pre-tax income by approximately $3.9 million and are anticipated to impact the full year’s pre-tax income by between $14.0 to $15.0 million. As of quarter-end, we had a total of 101 stores throughout Florida.
     Deposit Accounts and Balances — “At quarter-end, ‘total bank’ and ‘same store’ core deposit balances increased 9.8% and 7.5%, respectively, over the third quarter of 2006, representing a total bank net increase of $205.5 million in core deposits and $293.4 million in total deposits. In the third quarter of 2007, BankAtlantic opened nearly 60,000 new core deposit accounts.
     Net Interest Margin and Earning Assets — “Net interest income for the third quarter of 2007 was $49.2 million compared to $55.1 million in the corresponding 2006 quarter, reflecting a 45 basis point decline in the tax equivalent net interest margin. The tax equivalent net interest margin was 3.59% in the third quarter of 2007, down from 4.04% in the corresponding quarter of 2006. Average earning assets increased $80.6 million over the third quarter of 2006, with growth in lower yielding residential real estate loans offset by declines in higher yielding commercial real estate loans. Average core deposits and total deposits increased $187.9 million and $253.5 million, respectively, over the third quarter of 2006.

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     Non-interest income — “Non-interest income for the third quarter was $35.9 million, a 6.4% increase over the comparable 2006 period. Additionally, non-interest income as a percent of total revenues rose to 42.1% in the third quarter of 2007 compared to 38.0% in the comparable 2006 quarter, reflecting an increase in the number of transaction accounts as well as an increase in revenue not directly impacted by the interest rate environment.
     Non-interest expense — “Non-interest expense for the third quarter of 2007 increased $6.6 million from the third quarter of 2006 to $81.5 million, which included $10.9 million in real estate impairments and $4.8 million in increased expenses, year-over-year, related to our store expansion program. Additionally, non-interest expenses increased from the second to the third quarter of 2007 by approximately $10.0 million, reflecting $10.9 million in impairment charges of real estate owned or held for sale in the third quarter compared to $1.1 million of impairments in the second quarter. Excluding these impairments, non-interest expense during these quarters would have been essentially flat, while absorbing approximately $1.5 million in incremental expense from the second to third quarter of 2007 related to our store expansion program.
     “In summary, we are working closely with our residential land borrowers in this difficult economic environment. We continue to evaluate available opportunities to reduce expenses and improve profitability. At the same time, we are analyzing new deposit products and services with a goal of increasing our core deposits and providing compelling value to our customers,” concluded Jarett S. Levan.
BankAtlantic Bancorp:
     Stifel Investment — BankAtlantic Bancorp’s Chairman and CEO, Alan B. Levan, further commented, “We continue to hold 2,377,354 shares of Stifel common stock and warrants to purchase 481,724 shares of Stifel common stock at an exercise price of $36 per share, the fair-value of which at quarter-end aggregated approximately $130.7 million. We recorded a $1.5 million pre-tax loss for the quarter associated with the change in value of the warrants in the third quarter of 2007, versus the $6.1 million gain recorded in the second quarter of 2007, and

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the $1.5 million loss recorded in the first quarter of 2007. Currently, pre-tax unrealized gains in the Stifel holdings are approximately $37.3 million (based on the October 22, 2007 closing price). Excluded from this amount is the possible contingent earn-out, if any, which may be payable pursuant to the terms of the Ryan Beck agreement. The private client contingent payment is based upon defined revenues attributable to specified individuals over a two-year period; assuming such individuals achieve their 2006 level of revenues annually during the earn-out period, the earn-out would approximate $20.0 million. The private client earn-out is capped at $40.0 million for the two years. The investment banking contingent payment is based on defined revenues attributable to specified individuals, and is equal to 25% of the related fees in excess of $25.0 million for each of the two years following closing. The contingent payments are payable, at Stifel’s election, in cash or common stock, but there is no assurance any amounts will ultimately be payable.
     Cash Dividend — “BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.0412 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on October 3rd, 2007. The third quarter’s dividend declaration marked BankAtlantic Bancorp’s 57th consecutive quarterly dividend payment.”
Financial Highlights:
Third Quarter, 2007 Compared to Third Quarter, 2006
BankAtlantic Bancorp — consolidated:
  •   (Loss) from continuing operations of ($29.6) million vs. income of $7.4 million
 
  •   Diluted (loss) earnings per share from continuing operations of ($0.52 ) vs. $0.12
 
  •   Return on average tangible equity from continuing operations was (27.45%) vs. 6.52%
 
  •   Book value per share was $8.42 vs. $8.57

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BankAtlantic:
  •   Business segment (loss) income was ($27.1) million vs. $9.8 million
 
  •   Nearly 60,000 new core deposit accounts opened
 
  •   Return on average tangible assets was (1.75%) vs. 0.65%
 
  •   Return on average tangible equity was (21.35%) vs. 7.86%
 
  •   Tax equivalent net interest margin decreased to 3.59% vs. 4.04%
 
  •   Non-interest income was $35.9 million vs. $33.7 million in 2006, an increase of 6%
 
  •   Non-interest expense was $81.5 million vs. $74.9 million in 2006, an increase of 9%
 
  •   Non-interest expense, before the $10.9 million impairment charges associated with real estate owned and held for sale in 2007, was $70.6 million vs. $74.9 million, a decrease of 6%
Year-to-date 2007 Compared to Year-to-date 2006
BankAtlantic Bancorp — consolidated:
  •   (Loss) from continuing operations was ($20.1) million vs. income of $25.8 million
 
  •   Diluted (loss) earnings per share from continuing operations was ($0.34) vs. $0.41
 
  •   Return on average tangible equity from continuing operations was (6.04%) vs. 6.56%
BankAtlantic:
  •   Business segment (loss) income was ($16.1) million vs. $32.7 million
 
  •   Nearly 200,000 new core deposit accounts opened
 
  •   Return on average tangible assets was (0.35%) vs. 0.73%
 
  •   Return on average tangible equity was (4.24%) vs. 8.86%
 
  •   Non-interest income, before $1.5 million of gains associated with debt redemption in 2006, was $107.6 million during 2007 vs. $94.2 million, an increase of 14%
 
  •   Non-interest expense, before the $12.0 million impairment charge associated with real estate owned and real estate held for sale and the one-time termination benefits of $2.6 million in 2007 and the $1.5 million costs associated with debt redemption in 2006, grew to $217.2 million vs. $213.5 million, an increase of 2%
____________________
BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Friday, October 26, 2007, at 11:00 a.m. (Eastern Time).

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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 19442017.
     A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Friday, November 9, 2007. 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 19442017.
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=42821. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Friday, November 9, 2007.
     BankAtlantic Bancorp’s third quarter, 2007 earnings results press release and financial summary, as well as the Supplemental Financials (a detailed summary of significant financial events and extensive business segment financial data), will be available on its website at: www.BankAtlanticBancorp.com.
  •   To view the financial summary, access the “Investor Relations” section and click on the “Quarterly Financials” navigation link.
 
  •   To view the Supplemental Financials, access the “Investor Relations” section and click on the “Supplemental Financials” navigation link.
     Copies of BankAtlantic Bancorp’s third quarter, 2007 earnings results press release and financial summary, and the Supplemental Financials will also be made available upon request via fax, email, or postal service mail. To request a copy, contact BankAtlantic Bancorp’s Investor Relations department using the contact information listed below.
About BankAtlantic Bancorp:
BankAtlantic Bancorp (NYSE: BBX) is a diversified financial services holding company and the parent company of BankAtlantic. BankAtlantic Bancorp provides a full line of products and services encompassing consumer and commercial banking. On February 28, 2007, BankAtlantic Bancorp announced that it had completed the sale of its wholly-owned subsidiary, Ryan Beck Holdings, Inc. and its subsidiaries to Stifel Financial Corp., Inc. (NYSE: SF). As a consequence of the sale, BankAtlantic Bancorp currently holds a 16% ownership interest in Stifel Financial Corp.
About BankAtlantic:
BankAtlantic, “Florida’s Most Convenient Bank” is one of the largest financial institutions headquartered in Florida and provides a comprehensive offering of banking services and products via its broad network of community stores and its online banking division — BankAtlantic.com. BankAtlantic has over 100 stores and operates more than 250 conveniently

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located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, including several stores open until midnight, Totally Free Online Banking & Bill Pay, 24/7 Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift.
For further information, please visit our websites:
www.BankAtlanticBancorp.com
www.BankAtlantic.com
* To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on our website: www.BankAtlanticBancorp.com.
BankAtlantic Bancorp Contact Info:
Donna Rouzeau,
Assistant Vice President, Investor Relations & Corporate Communications
Email: CorpComm@BankAtlanticBancorp.com
Leo Hinkley,
Senior Vice President, Investor Relations Officer
Email: InvestorRelations@BankAtlanticBancorp.com
Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309
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: caren@boardroompr.com
* To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on our website: www.BankAtlanticBancorp.com.
# # #
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

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reference herein, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify certain of such forward-looking statements. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of BankAtlantic Bancorp, Inc. (“the Company”) and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services; credit risks and loan losses, and the related sufficiency of the allowance for loan losses, including the impact on the credit quality of our loans, 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 Loans”) and conditions specifically in that market sector; the risks of additional charge offs, impairments and required increases in our allowance for loan losses; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on the bank’s net interest margin; adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on our activities; the value of our assets and on the ability of our borrowers to service their debt obligations; BankAtlantic’s seven-day banking initiatives and other growth, marketing or advertising initiatives not resulting in continued growth of core deposits or producing results which do not justify their costs; the success of our expense discipline initiative and the ability to achieve additional cost savings; the success of BankAtlantic’s new store expansion program, including the opening of the anticipated number of new stores in 2007 and 2008 and achieving growth and profitability at the stores in the time frames anticipated, if at all; and the impact of periodic testing of goodwill and other intangible assets for impairment. Past performance, actual or estimated new account openings and growth rate may not be indicative of future results. Additionally, we acquired a significant investment in Stifel equity securities in connection with the Ryan Beck Holdings, Inc. sale subjecting us to the risk of the value of Stifel shares and warrants received varying over time, and the risk that no gain will be realized. The earn-out amounts payable under the agreement with Stifel are contingent upon the performance of individuals and divisions of Ryan Beck which are now under the exclusive control and direction of Stifel, and there is no assurance that we will be entitled to receive any earn-out payments. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission. The Company cautions that the foregoing factors are not exclusive.

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BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)
                                                             
                                                For the Nine
        For the Three Months Ended   Months Ended
        9/30/2007   6/30/2007   3/31/2007   12/31/2006   9/30/2006   9/30/2007   9/30/2006
Earnings (in thousands):
                                                            
Net (loss) income from continuing operations
       $ (29,610 )     11,728       (2,204 )     1,048       7,366       (20,086 )     25,831  
Net (loss) income
       $ (29,610 )     11,620       5,716       (1,670 )     2,524       (12,274 )     17,057  
 
                                                            
Average Common Shares Outstanding (in thousands):
                                                            
Basic
         56,832       59,190       60,635       61,007       61,046       58,872       61,125  
Diluted
         56,832       59,929       60,635       62,278       62,412       58,872       62,664  
 
                                                            
Key Performance Ratios
                                                            
Basic (loss) earnings per share from continuing operations
       $ (0.52 )     0.20       (0.04 )     0.02       0.12       (0.34 )     0.42  
Diluted (loss) earnings per share from continuing operations
       $ (0.52 )     0.20       (0.04 )     0.02       0.12       (0.34 )     0.41  
Basic (loss) earnings per share
       $ (0.52 )     0.20       0.09       (0.03 )     0.04       (0.21 )     0.28  
Diluted (loss) earnings per share
       $ (0.52 )     0.19       0.09       (0.03 )     0.04       (0.21 )     0.27  
Return on average tangible assets from continuing operations
   (note 1)     (1.85 )%     0.74       (0.14 )     0.07       0.46       (0.42 )     0.55  
Return on average tangible equity from continuing operations
   (note 1)     (27.45 )%     10.47       (1.96 )     0.92       6.52       (6.04 )     6.56  
 
                                                            
Average Balance Sheet Data (in millions):
                                                            
Assets
       $ 6,479       6,407       6,439       6,520       6,467       6,442       6,376  
Tangible assets
   (note 1)   $ 6,402       6,330       6,358       6,436       6,383       6,363       6,291  
Loans
       $ 4,693       4,678       4,651       4,655       4,611       4,674       4,567  
Investments
       $ 1,244       1,194       1,142       1,141       1,151       1,194       1,106  
Deposits and escrows
       $ 3,984       4,048       3,902       3,776       3,731       3,978       3,803  
Stockholders’ equity
       $ 506       525       529       533       526       520       525  
Tangible stockholders’ equity
   (note 1)   $ 431       448       450       454       452       443       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)
                 
    September 30,     December 31,  
(in thousands, except share data)   2007     2006  
ASSETS
                
Cash and cash equivalents
   $ 138,170       138,904  
Securities available for sale (at fair value)
     715,458       651,316  
Investment securities held-to-maturity (approximate fair value: $252,341 and $209,020)
     245,950       206,682  
Financial instruments accounted for at fair value
     13,388       —  
Tax certificates net of allowance of $3,894 and $3,699
     204,746       195,391  
Loans receivable, net of allowance for loan losses of $92,358 and $43,602
     4,586,625       4,595,920  
Federal Home Loan Bank stock, at cost which approximates fair value
     74,903       80,217  
Discontinued operations assets held for sale
     —       190,763  
Real estate held for development and sale
     21,985       25,333  
Real estate owned
     17,159       21,747  
Office properties and equipment, net
     251,445       219,717  
Goodwill and other intangible assets
     76,236       77,324  
Other assets
     139,528       92,348  
 
            
Total assets
   $ 6,485,593       6,495,662  
 
            
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Liabilities:
                
Deposits
                
Demand
   $ 895,263       995,920  
NOW
     801,289       779,383  
Savings
     613,010       465,172  
Money market
     656,218       677,642  
Certificates of deposit
     1,002,197       948,919  
 
            
Total deposits
     3,967,977       3,867,036  
Advances from FHLB
     1,417,047       1,517,058  
Securities sold under agreements to repurchase
     64,837       101,932  
Federal funds purchased and other short term borrowings
     175,000       32,026  
Subordinated debentures and bonds payable
     29,125       29,923  
Junior subordinated debentures
     294,195       263,266  
Discontinued operations liabilities held for sale
     —       95,246  
Other liabilities
     65,523       64,193  
 
            
Total liabilities
     6,013,704       5,970,680  
 
            
Stockholders’ equity:
                
Common stock
     561       611  
Additional paid-in capital
     215,524       260,460  
Retained earnings
     246,357       265,089  
 
            
Total stockholders’ equity before accumulated other comprehensive income (loss)
     462,442       526,160  
Accumulated other comprehensive income (loss)
     9,447       (1,178 )
 
            
Total stockholders’ equity
     471,889       524,982  
 
            
Total liabilities and stockholders’ equity
   $ 6,485,593       6,495,662  
 
            

 

 

BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
                                                         
                                            For the Nine  
    For the Three Months Ended     Months Ended  
(in thousands)   9/30/2007     6/30/2007     3/31/2007     12/31/2006     9/30/2006     9/30/2007     9/30/2006  
INTEREST INCOME:
                                                        
Interest and fees on loans
   $ 80,082       79,914       79,587       81,019       80,790       239,583       231,941  
Interest on securities available for sale
     4,835       4,628       4,561       4,472       4,483       14,024       13,102  
Interest on tax exempt securities
     3,838       3,800       3,796       3,817       3,804       11,434       11,472  
Interest and dividends on taxable investments and tax certificates
     6,141       5,433       5,596       6,543       6,039       17,170       14,811  
 
                                          
Total interest income
     94,896       93,775       93,540       95,851       95,116       282,211       271,326  
 
                                          
INTEREST EXPENSE:
                                                        
Interest on deposits
     22,558       21,473       19,002       17,258       15,095       63,033       41,701  
Interest on advances from FHLB
     18,987       18,103       18,723       20,837       18,509       55,813       45,655  
Interest on short-term borrowed funds
     2,940       2,010       2,555       2,505       5,078       7,505       12,584  
Interest on secured borrowings
     —       —       —       —       —       —       2,401  
Interest on long-term debt
     6,652       6,136       6,114       6,184       6,521       18,902       18,861  
Capitalized interest on real estate development
     —       —       —       (85 )     (75 )     —       (844 )
 
                                          
Total interest expense
     51,137       47,722       46,394       46,699       45,128       145,253       120,358  
 
                                          
NET INTEREST INCOME
     43,759       46,053       47,146       49,152       49,988       136,958       150,968  
Provision for loan losses
     48,949       4,917       7,461       8,160       271       61,327       414  
 
                                          
NET INTEREST INCOME AFTER PROVISION
     (5,190 )     41,136       39,685       40,992       49,717       75,631       150,554  
 
                                          
NON-INTEREST INCOME:
                                                        
Service charges on deposits
     25,894       25,808       24,595       26,091       24,008       76,297       64,381  
Other service charges and fees
     7,222       7,524       7,033       7,188       6,779       21,779       20,354  
Securities activities, net
     1,207       8,813       1,555       2,199       2,243       11,575       7,614  
Gain on sales of loans
     88       138       200       211       175       426       469  
Gain associated with debt redemption
     —       —       —       —       —       —       1,528  
Income from unconsolidated subsidiaries
     348       669       1,146       303       266       2,163       1,364  
(Loss) gain on the sale of office properties and equipment, net
     (362 )     (42 )     (153 )     (148 )     (3 )     (557 )     1,775  
Other
     2,225       2,574       2,376       2,581       2,740       7,175       6,706  
 
                                          
Total non-interest income
     36,622       45,484       36,752       38,425       36,208       118,858       104,191  
 
                                          
NON-INTEREST EXPENSE:
                                                        
Employee compensation and benefits
     34,258       37,908       41,090       38,759       38,619       113,256       112,045  
Occupancy and equipment
     16,954       15,927       15,944       16,247       15,018       48,825       41,061  
Impairment of real estate held for sale
     3,655       1,056       —       —       —       4,711       —  
Impairment of real estate owned
     7,233       66       —       —       —       7,299       —  
Advertising and promotion
     4,276       4,209       5,858       10,400       8,649       14,343       24,667  
Professional fees
     2,542       1,368       1,713       1,632       1,968       5,623       6,659  
Costs associated with debt redemption
     —       —       —       —       —       —       1,457  
Check losses
     3,341       2,731       1,857       2,639       2,855       7,929       5,976  
Supplies and postage
     1,159       1,632       1,853       1,736       1,719       4,644       5,117  
Telecommunication
     1,286       1,556       1,381       1,233       1,241       4,223       3,552  
One-time termination benefits
     —       —       2,553       —       —       2,553       —  
Other
     6,975       6,724       7,244       7,195       6,438       20,943       19,811  
 
                                          
Total non-interest expense
     81,679       73,177       79,493       79,841       76,507       234,349       220,345  
 
                                          
(Loss) income from continuing operations before income taxes
     (50,247 )     13,443       (3,056 )     (424 )     9,418       (39,860 )     34,400  
(Benefit) provision for income taxes
     (20,637 )     1,715       (852 )     (1,472 )     2,052       (19,774 )     8,569  
 
                                          
(Loss) income from continuing operations
     (29,610 )     11,728       (2,204 )     1,048       7,366       (20,086 )     25,831  
Discontinued operations
     —       (108 )     7,920       (2,718 )     (4,842 )     7,812       (8,774 )
 
                                          
 
                                                      
Net (loss) income
   $ (29,610 )     11,620       5,716       (1,670 )     2,524       (12,274 )     17,057  
 
                                          

 

 

BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
                                             
        For the Three Months Ended  
(in thousands except percentages and per share data)       9/30/2007     6/30/2007     3/31/2007     12/31/2006     9/30/2006  
Loans:
                                            
Residential real estate
       $ 2,245,138       2,215,606       2,181,478       2,176,047       2,130,077  
Commercial real estate
         1,346,842       1,384,405       1,420,944       1,462,005       1,498,192  
Consumer
         662,320       635,370       606,472       584,972       563,002  
Commercial business
         134,390       147,026       156,237       155,884       152,796  
Small business
         304,388       295,483       285,387       276,103       267,263  
 
                                  
Total Loans
         4,693,078       4,677,890       4,650,518       4,655,011       4,611,330  
Investments — taxable
         841,486       795,156       743,936       740,568       751,922  
Investments — tax exempt
         402,482       399,160       398,388       400,804       399,091  
 
                                  
Total interest earning assets
         5,937,046       5,872,206       5,792,842       5,796,383       5,762,343  
Goodwill and core deposit intangibles
         76,419       76,784       81,124       83,708       84,098  
Discontinued assets held for sale
         —       —       118,319       232,317       226,146  
Other non-interest earning assets
         465,427       457,817       446,785       407,149       394,311  
 
                                  
Total assets
       $ 6,478,892       6,406,807       6,439,070       6,519,557       6,466,898  
 
                                  
Tangible assets
   (note 1)   $ 6,402,473       6,330,023       6,357,946       6,435,849       6,382,800  
 
                                  
 
                                            
Deposits:
                                            
Demand deposits
       $ 922,293       989,259       989,293       1,006,242       1,043,497  
Savings
         611,862       605,939       529,435       413,239       367,829  
NOW
         792,462       782,018       771,017       735,164       727,517  
Money market
         660,925       677,545       650,383       694,057       733,058  
Certificates of deposit
         996,415       993,458       961,716       927,431       858,688  
 
                                  
Total deposits
         3,983,957       4,048,219       3,901,844       3,776,133       3,730,589  
Short-term borrowed funds
         225,034       151,656       197,683       189,519       374,913  
FHLB advances
         1,398,245       1,344,855       1,405,279       1,528,039       1,354,944  
Long-term debt
         318,762       293,489       292,899       293,592       300,549  
 
                                  
Total borrowings
         1,942,041       1,790,000       1,895,861       2,011,150       2,030,406  
Discontinued liabilities held for sale
         —       —       61,202       141,254       131,266  
Other liabilities
         46,805       43,465       50,722       57,832       48,827  
 
                                  
Total liabilities
         5,972,803       5,881,684       5,909,629       5,986,369       5,941,088  
 
                                  
Stockholders’ equity
         506,089       525,123       529,441       533,188       525,810  
 
                                  
Total liabilities and stockholders’ equity
       $ 6,478,892       6,406,807       6,439,070       6,519,557       6,466,898  
 
                                  
Other comprehensive (loss) income in stockholders’ equity
         (1,765 )     377       (2,142 )     (4,379 )     (10,270 )
 
                                  
Tangible stockholders’ equity
   (note 1)   $ 431,435       447,962       450,459       453,859       451,982  
 
                                  
Net Interest Margin
         3.11 %     3.27 %     3.35 %     3.56 %     3.63 %
 
                                  
 
                                            
Period End
                                            
Total loans, net
       $ 4,586,625       4,618,690       4,622,784       4,595,920       4,638,215  
Total assets
         6,485,593       6,495,047       6,380,176       6,495,662       6,570,220  
Total stockholders’ equity
         471,889       512,724       514,977       524,982       522,533  
Class A common shares outstanding
         51,168,201       53,212,871       54,956,368       56,157,425       56,114,600  
Class B common shares outstanding
         4,876,124       4,876,124       4,876,124       4,876,124       4,876,124  
Cash dividends
         2,315,458       2,386,145       2,458,490       2,507,673       2,506,136  
Common stock cash dividends per share
         0.0412       0.0410       0.0410       0.0410       0.0410  
Closing stock price
         8.67       8.61       10.96       13.81       14.22  
High stock price for the quarter
         9.25       11.25       13.98       13.94       14.97  
Low stock price for the quarter
         7.50       8.38       10.87       12.66       12.96  
Book value per share
         8.42       8.83       8.61       8.60       8.57  

 

 

Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
                                                         
                                            For the Nine  
          For the Three Months Ended       Months Ended  
(in thousands)   9/30/2007     6/30/2007     3/31/2007     12/31/2006     9/30/2006     9/30/2007     9/30/2006  
Net interest income
   $ 49,235       50,914       52,070       54,103       55,107       152,219       165,502  
Provision for loan losses
     48,949       4,917       7,461       8,160       271       61,327       414  
 
                                          
Net interest income after provision for loan losses
     286       45,997       44,609       45,943       54,836       90,892       165,088  
 
                                          
Non-interest income
                                                        
Service charges on deposits
     25,894       25,808       24,595       26,091       24,008       76,297       64,381  
Other service charges and fees
     7,222       7,524       7,033       7,188       6,779       21,779       20,354  
Securities activities, net
     613       212       621       200       —       1,446       457  
Gain on sales of loans
     88       138       200       211       175       426       469  
Gain associated with debt redemption
     —       —       —       —       —       —       1,528  
Income from unconsolidated subsidiaries
     182       509       365       33       —       1,056       —  
(Loss) gain on the sale of office properties, net
     (362 )     (42 )     (153 )     (148 )     (3 )     (557 )     1,775  
Other non-interest income
     2,224       2,535       2,386       2,590       2,752       7,145       6,715  
 
                                          
Total non-interest income
     35,861       36,684       35,047       36,165       33,711       107,592       95,679  
 
                                          
Non-interest expense
                                                        
Employee compensation and benefits
     34,244       36,628       40,664       37,709       37,512       111,536       108,390  
Occupancy and equipment
     16,951       15,923       15,942       16,242       15,015       48,816       41,049  
Impairment of real estate held for sale
     3,655       1,056       —       —       —       4,711       —  
Impairment of real estate owned
     7,233       66       —       —       —       7,299       —  
Advertising
     4,221       4,079       5,788       10,331       8,599       14,088       24,328  
Professional fees
     2,444       1,233       1,620       1,576       1,756       5,297       6,077  
Costs associated with debt redemption
     —       —       —       —       —       —       1,457  
Check losses
     3,341       2,731       1,857       2,639       2,855       7,929       5,976  
Supplies and postage
     1,158       1,629       1,850       1,735       1,716       4,637       5,098  
Telecommunication
     1,283       1,548       1,379       1,230       1,238       4,210       3,544  
One-time termination benefits
     —       —       2,553       —       —       2,553       —  
Other
     6,965       6,629       7,117       7,017       6,217       20,711       19,050  
 
                                          
Total non-interest expense
     81,495       71,522       78,770       78,479       74,908       231,787       214,969  
 
                                          
(Loss) income from bank operations business segment before income taxes
     (45,348 )     11,159       886       3,629       13,639       (33,303 )     45,798  
(Benefit) provision for income taxes
     (18,236 )     754       247       11       3,801       (17,235 )     13,094  
 
                                          
Net (loss) income from bank operations business segment
   $ (27,112 )     10,405       639       3,618       9,838       (16,068 )     32,704  
 
                                          

 

 

Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
                                                         
                                            For the Nine
(in thousands except percentages   For the Three Months Ended   Months Ended
and per share data)   9/30/2007   6/30/2007   3/31/2007   12/31/2006   9/30/2006   9/30/2007   9/30/2006
Statistics:
                                                        
Tax equivalent:
                                                        
Average earning assets
  $ 5,750,192       5,690,488       5,666,507       5,702,063       5,669,550       5,702,702       5,573,990  
Average interest bearing liabilities
   $ 4,718,381       4,590,419       4,551,448       4,520,332       4,457,382       4,620,695       4,328,741  
Average tangible assets
   $ 6,194,549       6,127,470       6,092,568       6,086,579       6,041,302       6,138,565       5,938,841  
Average tangible equity
   $ 507,963       504,091       502,827       505,580       500,655       505,111       492,152  
Borrowings to deposits and borrowings
     29.89 %     28.74       26.39       30.36       33.63       29.89       33.63  
Tax equivalent:
                                                        
Yield on earning assets
     6.71 %     6.70       6.71       6.83       6.81       6.71       6.60  
Cost of interest-bearing liabilities
     3.80 %     3.70       3.65       3.62       3.52       3.72       3.24  
Interest spread
     2.91 %     3.00       3.06       3.21       3.29       2.99       3.36  
Net interest margin
     3.59 %     3.72       3.78       3.96       4.04       3.70       4.08  
Performance:
                                                        
Efficiency ratio
     95.77 %     81.65       90.42       86.94       84.34       89.21       82.31  
Return on average tangible assets
     (1.75 )%     0.68       0.04       0.24       0.65       (0.35 )     0.73  
Return on average tangible equity
     (21.35 )%     8.26       0.51       2.86       7.86       (4.24 )     8.86  
Earning assets repricing:
                                                        
Percent of earning assets that have fixed rates
     54 %     54       54       52       52                  
Percent of earning assets that have variable rates
     46 %     46       46       48       48                  
One year Gap
     (9 )%     (7 )     (3 )     (4 )     (4 )                

 

 

Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
                                         
    As of  
(in thousands)   9/30/2007     6/30/2007     3/31/2007     12/31/2006     9/30/2006  
ASSETS
                                        
Loans receivable, net
   $ 4,586,625       4,618,690       4,622,784       4,595,920       4,638,215  
Held to maturity securities
     482,666       507,593       424,487       475,790       479,859  
Available for sale securities
     570,624       563,318       556,404       559,629       568,699  
Goodwill
     70,489       70,489       70,489       70,489       70,489  
Core deposit intangible asset
     5,747       6,097       6,447       6,834       7,221  
Other assets
     557,951       505,874       495,098       478,460       418,551  
 
                              
Total assets
   $ 6,274,102       6,272,061       6,175,709       6,187,122       6,183,034  
 
                              
LIABILITIES AND STOCKHOLDER’S EQUITY
                                        
Deposits
                                        
Demand
   $ 896,094       971,260       1,031,628       995,930       1,011,531  
NOW
     801,289       769,994       799,300       779,383       723,211  
Savings
     613,010       608,791       598,579       465,172       370,169  
Money market
     656,218       666,820       653,231       677,642       695,591  
Certificates of deposit
     1,002,197       1,000,278       1,002,284       948,919       874,956  
 
                              
Total deposits
     3,968,808       4,017,143       4,085,022       3,867,046       3,675,458  
Advances from Federal Home Loan Bank
     1,417,047       1,397,051       1,297,055       1,517,058       1,687,062  
Short term borrowings
     245,895       193,937       137,914       138,686       144,722  
Long term debt
     29,125       29,397       29,654       29,923       30,192  
Other liabilities
     74,539       67,747       63,108       68,460       81,437  
 
                              
Total liabilities
     5,735,414       5,705,275       5,612,753       5,621,173       5,618,871  
Stockholder’s equity
     538,688       566,786       562,956       565,949       564,163  
 
                              
Total liabilities and stockholder’s equity
   $ 6,274,102       6,272,061       6,175,709       6,187,122       6,183,034  
 
                              

 

 

Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
                                                 
    For the Three Months Ended
    September 30, 2007     September 30, 2006  
    Average     Revenue/     Yield/     Average     Revenue/     Yield/  
( in thousands)   Balance     Expense     Rate     Balance     Expense     Rate  
Loans:
                                                
Residential real estate
   $ 2,245,138       30,901       5.51 %   $ 2,130,077       27,891       5.24 %
Commercial real estate
     1,346,842       27,519       8.17       1,498,192       32,979       8.81  
Consumer
     662,320       12,419       7.50       563,001       11,024       7.83  
Commercial business
     134,390       3,054       9.09       152,796       3,408       8.92  
Small business
     304,388       6,189       8.13       267,263       5,489       8.22  
 
                                    
Total loans
     4,693,078       80,082       6.83       4,611,329       80,791       7.01  
Investments — tax exempt
     390,906       5,765 (1)     5.90       397,436       5,806 (1)     5.84  
Investments — taxable
     666,208       10,580       6.35       660,785       9,993       6.05  
 
                                    
Total interest earning assets
     5,750,192       96,427       6.71 %     5,669,550       96,590       6.81 %
 
                                        
Goodwill and core deposit intangibles
     76,419                       77,913                  
Other non-interest earning assets
     444,357                       371,752                  
 
                                            
Total Assets
   $ 6,270,968                     $ 6,119,215                  
 
                                            
 
                                                
Deposits:
                                                
Savings
   $ 611,862       3,642       2.36 %   $ 367,829       721       0.78 %
NOW
     792,462       2,355       1.18       727,517       1,149       0.63  
Money market
     660,925       4,881       2.93       733,058       4,019       2.18  
Certificates of deposit
     996,415       11,679       4.65       858,688       9,206       4.25  
 
                                    
Total interest bearing deposits
     3,061,664       22,557       2.92       2,687,092       15,095       2.23  
 
                                    
Short-term borrowed funds
     229,366       2,998       5.19       378,063       5,117       5.37  
Advances from FHLB
     1,398,245       18,987       5.39       1,354,944       18,509       5.42  
Long-term debt
     29,106       632       8.61       37,283       805       8.57  
 
                                    
Total interest bearing liabilities
     4,718,381       45,174       3.80       4,457,382       39,526       3.52  
Demand deposits
     922,452                       1,043,574                  
Non-interest bearing other liabilities
     54,210                       53,567                  
 
                                            
Total Liabilities
     5,695,043                       5,554,523                  
Stockholder’s equity
     575,925                       564,692                  
 
                                            
Total liabilities and stockholder’s equity
   $ 6,270,968                     $ 6,119,215                  
 
                                            
Net tax equivalent interest income/ net interest spread
             51,253       2.91 %             57,064       3.29 %
 
                                            
Tax equivalent adjustment
             (2,018 )                     (2,032 )        
Capitalized interest from real estate operations
             —                       75          
 
                                            
Net interest income
             49,235                       55,107          
 
                                            
 
                                                
Margin
                                                
Interest income/interest earning assets
                     6.71 %                     6.81 %
Interest expense/interest earning assets
                     3.12                       2.77  
 
                                            
Net interest margin (tax equivalent)
                     3.59 %                     4.04 %
 
                                            
 
(1)   The tax equivalent basis is computed using a 35% tax rate.

 

 

Bank Operations
Average Balance Sheet — Yield / Rate Analysis
                                                 
    For the Nine Months Ended  
    September 30, 2007     September 30, 2006  
    Average     Revenue/     Yield/     Average     Revenue/     Yield/  
(in thousands)   Balance     Expense     Rate     Balance     Expense     Rate  
Loans:
                                                
Residential real estate
   $ 2,214,307       90,593       5.46 %   $ 2,073,923       79,890       5.14 %
Commercial real estate
     1,383,783       85,658       8.25       1,511,983       94,775       8.36  
Loan participations sold
     —       —       0.00       41,306       2,401       7.75  
Consumer
     634,925       35,619       7.48       549,939       30,676       7.44  
Commercial business
     145,759       9,846       9.01       135,272       8,937       8.81  
Small business
     295,211       17,867       8.07       254,325       15,262       8.00  
 
                                    
Total loans
     4,673,985       239,583       6.83       4,566,748       231,941       6.77  
Investments — tax exempt
     395,218       17,412 (1)     5.87       396,348       17,355       5.84  
Investments — taxable
     633,499       29,782       6.27       610,894       26,422       5.77  
 
                                    
Total interest earning assets
     5,702,702       286,777       6.71 %     5,573,990       275,718       6.60 %
 
                                        
Goodwill and core deposit intangibles
     76,778                       78,300                  
Other non-interest earning assets
     435,863                       364,851                  
 
                                            
Total Assets
   $ 6,215,343                     $ 6,017,141                  
 
                                            
 
Deposits:
                                                
Savings
   $ 582,714       9,613       2.21 %   $ 354,765       1,557       0.59 %
NOW
     781,911       5,616       0.96       750,771       3,106       0.55  
Money market
     662,990       13,608       2.74       775,833       11,977       2.06  
Certificates of deposit
     983,990       34,195       4.65       849,011       25,061       3.95  
 
                                    
Total deposits
     3,011,605       63,032       2.80       2,730,380       41,701       2.04  
 
                                    
Short-term borrowed funds
     196,953       7,722       5.24       342,413       12,760       4.98  
Advances from FHLB
     1,382,768       55,813       5.40       1,177,389       45,655       5.18  
Secured borrowings
     —       —       0.00       41,306       2,401       7.75  
Long-term debt
     29,369       1,897       8.64       37,253       2,469       8.86  
 
                                    
Total interest bearing liabilities
     4,620,695       128,464       3.72       4,328,741       104,986       3.24  
Demand deposits
     966,898                       1,072,867                  
Non-interest bearing other liabilities
     53,738                       58,383                  
 
                                            
Total Liabilities
     5,641,331                       5,459,991                  
Stockholder’s equity
     574,012                       557,150                  
 
                                            
Total liabilities and stockholder’s equity
   $ 6,215,343                     $ 6,017,141                  
 
                                            
Net interest income/net interest spread
             158,313       2.99 %             170,732       3.36 %
 
                                            
Tax equivalent adjustment
             (6,094 )                     (6,074 )        
Capitalized interest from real estate operations
             —                       844          
 
                                            
Net interest income
             152,219                       165,502          
 
                                            
Margin
                                                
Interest income/interest earning assets
                     6.71 %                     6.60 %
Interest expense/interest earning assets
                     3.01                       2.52  
 
                                            
Net interest margin
                     3.70 %                     4.08 %
 
                                            
 
Net interest margin (tax equivalent) excluding secured borrowings
                     3.70 %                     4.11 %
 
                                            
 
(1)   The tax equivalent basis is computed using a 35% tax rate.

 

 

Bank Operations Business Segment
Allowance for Loan Loss and Credit Quality
                                                         
                                            For the Nine  
    For the Three Months Ended     Months Ended  
(in thousands)   9/30/2007     6/30/2007     3/31/2007     12/31/2006     9/30/2006     9/30/2007     9/30/2006  
Allowance for Loan Losses
                                                        
 
                                                        
Beginning balance
   $ 54,754       50,373       43,602       42,517       42,012       43,602       41,192  
 
                                                        
Charge-offs:
                                                        
Residential real estate
     (3 )     (52 )     (151 )     —       (111 )     (206 )     (239 )
Commercial real estate
     (9,444 )     —       —       (7,000 )     —       (9,444 )     —  
Commercial business
     —       —       —       —       —       —       (34 )
Consumer
     (1,689 )     (744 )     (538 )     (209 )     (232 )     (2,971 )     (472 )
Small business
     (581 )     (1,001 )     (438 )     (544 )     (93 )     (2,020 )     (407 )
 
                                          
Total charge-offs
     (11,717 )     (1,797 )     (1,127 )     (7,753 )     (436 )     (14,641 )     (1,152 )
 
                                          
 
                                                        
Recoveries:
                                                        
Residential real estate
     —       15       —       —       170       15       348  
Commercial real estate
     —       304       —       —       10       304       19  
Commercial business
     29       777       42       379       54       848       281  
Consumer
     120       81       167       76       163       368       460  
Small business
     223       84       228       114       193       535       452  
Other
     —       —       —       109       80       —       503  
 
                                          
Total recoveries
     372       1,261       437       678       670       2,070       2,063  
 
                                          
Net (charge-offs) recoveries
     (11,345 )     (536 )     (690 )     (7,075 )     234       (12,571 )     911  
 
                                          
Provision for loan losses
     48,949       4,917       7,461       8,160       271       61,327       414  
 
                                          
Ending balance
     92,358       54,754       50,373       43,602       42,517       92,358       42,517  
Less specific reserves
     27,884       5,849       5,856       162       172       27,884       172  
 
                                          
General allowance for loan losses
   $ 64,474       48,905       44,517       43,440       42,345       64,474       42,345  
 
                                          
Annualized net charge-offs (recoveries) to average loans
     0.97 %     0.05       0.06       0.61       (0.02 )     0.36       (0.03 )
 
                                          
                                         
    As of  
    9/30/2007     6/30/2007     3/31/2007     12/31/2006     9/30/2006  
Credit Quality
                                        
 
                                        
Nonaccrual loans
   $ 60,536       9,161       13,101       4,436       32,895  
Nonaccrual loans with specific reserves
     104,833       12,645       12,645       —       —  
Nonaccrual tax certificates
     1,140       711       597       631       760  
Real estate owned
     17,159       23,886       23,135       21,747       1,439  
Other repossessed assets
     —       —       —       —       —  
 
                              
Total nonperforming assets, gross
     183,668       46,403       49,478       26,814       35,094  
 
                              
 
                                        
Nonperforming assets, gross to total loans and other assets
     3.74 %     0.94       1.02       0.55       0.72  
Allowance for loan losses to total loans
     1.97 %     1.17       1.08       0.94       0.91  
Provision to average loans
     4.17 %     0.42       0.64       0.70       0.02  
Allowance to nonaccrual loans
     55.85 %     251.10       195.65       982.91       129.25  
 
(1)   Average and total loans exclude loan participations sold financed by secured borrowings.

 

 

Parent Company Business Segment Activities
Condensed Statements of Operations — Unaudited
                                                         
                                            For the Nine  
    For the Three Months Ended     Months Ended  
(in thousands)   9/30/2007     6/30/2007     3/31/2007     12/31/2006     9/30/2006     9/30/2007     9/30/2006  
Net interest (expense)
   $ (5,476 )     (4,861 )     (4,924 )     (4,952 )     (5,117 )     (15,261 )     (14,533 )
Non-Interest income
                                                        
Income from unconsolidated subsidiaries
     167       159       781       270       266       1,107       1,364  
Securities activities, net
     594       8,601       934       2,000       2,243       10,129       7,156  
Other
     13       48       —       —       —       61       —  
 
                                          
Non-interest income
     774       8,808       1,715       2,270       2,509       11,297       8,520  
 
                                          
Non-interest expense
                                                        
Employee compensation and benefits
     14       1,280       426       1,050       1,107       1,720       3,655  
Advertising and promotion
     55       130       70       70       49       255       338  
Professional fees
     98       135       93       56       212       326       582  
Other
     30       118       144       194       243       292       811  
 
                                          
Non-interest expense
     197       1,663       733       1,370       1,611       2,593       5,386  
 
                                          
(Loss) income from parent company activities before income taxes
     (4,899 )     2,284       (3,942 )     (4,052 )     (4,219 )     (6,557 )     (11,399 )
(Benefit) provision for income taxes
     (2,401 )     961       (1,099 )     (1,484 )     (1,748 )     (2,539 )     (4,524 )
 
                                          
Net (loss) income from parent company business segment
   $ (2,498 )     1,323       (2,843 )     (2,568 )     (2,471 )     (4,018 )     (6,875 )
 
                                          
Condensed Statements of Financial Condition — Unaudited
                                         
    As of  
(in thousands)   9/30/2007     6/30/2007     3/31/2007     12/31/2006     9/30/2006  
ASSETS
                                        
Cash
   $ 12,540       28,332       14,699       4,852       2,246  
Securities
     201,155       193,979       194,257       103,218       101,621  
Investment in subsidiaries
     538,691       566,787       562,958       661,467       662,224  
Investment in unconsolidated subsidiaries
     8,839       8,685       7,910       11,996       11,996  
Other assets
     8,466       8,370       2,929       12,165       12,256  
 
                              
Total assets
   $ 769,691       806,153       782,753       793,698       790,343  
 
                              
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                        
Subordinated debentures and notes payable
   $ 294,195       289,040       263,266       263,266       263,266  
Other liabilities
     3,607       4,389       4,510       5,450       4,544  
 
                              
Total liabilities
     297,802       293,429       267,776       268,716       267,810  
 
                              
Stockholders’ equity
     471,889       512,724       514,977       524,982       522,533  
 
                              
Total liabilities and stockholders’ equity
   $ 769,691       806,153       782,753       793,698       790,343