EX-99.1 2 g11512exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 Press Release
 

Exhibit 99.1
(BANK ATLANTIC BANCORP LOGO)
BankAtlantic Bancorp Reports Financial Results
For the Fourth Quarter and Full Year, 2007
     FORT LAUDERDALE, Florida — January 29, 2008 —BankAtlantic Bancorp, Inc. (NYSE: BBX) today reported a loss from continuing operations of ($9.9) million, or ($0.18) per diluted share, for the fourth quarter 2007, compared to income from continuing operations of $1.0 million, or $0.02 per diluted share, for the fourth quarter 2006. For the year ended at December 31, 2007, BankAtlantic Bancorp recorded a net loss of ($22.2) million, or ($0.38) per diluted share, compared to net income of $15.4 million, or $0.25 per diluted share, for the year ended December 31, 2006. BankAtlantic Bancorp recorded a net loss from continuing operations of ($30.0) million, or ($0.52) per diluted share, for the year ended December 31, 2007, compared to net income from continuing operations of $26.9 million, or $0.43 per diluted share, reported for the year ended December 31, 2006.
     Pre-tax items contributing to the fourth quarter 2007 loss included, at the BankAtlantic level, $9.5 million in provision for loan losses, $5.7 million in restructuring charges and $3.2 million in negative impact associated with BankAtlantic’s store expansion program; and at the Parent Company level, a $3.3 million investment impairment and a $2.7 million reduction in Stifel Financial warrant valuation. These items are further discussed in this release.
     BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “The current economic environment is clearly challenging. While we are obviously unhappy that we have recognized substantial impairments in our Commercial Real Estate loan portfolio, we believe that we have successfully avoided many of the pitfalls in this market. BankAtlantic exited the high rise condo market a number of years in advance of its declines, avoided subprime and negative amortizing mortgage products, and sought to minimize credit risk in its investment portfolios by avoiding CLO, CDO, ABCP and SIV exposure. Rather than expanding leverage and generating funding through higher cost methods, BankAtlantic focused on increasing core deposits through our seven-day convenience model, which appears to be positive in the current rate environment. We also commenced expense reduction initiatives and have aggressively identified issues in our commercial loan portfolios. We believe BankAtlantic

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will emerge as a stronger organization as the marketplace returns to a more normalized environment.
BankAtlantic Highlights
     Net Income — “For the fourth quarter of 2007, BankAtlantic’s net loss was ($3.4) million, down from net income of $3.6 million in the comparable 2006 quarter. As discussed in detail later in this release, the decline was the result of net interest margin compression associated with the higher cost of deposits and higher levels of non-performing loans, increased provisions for loan losses, and expenses associated with restructuring and exit activities, partially offset by lower advertising costs. The full year 2007 net loss was ($19.4) million compared to net income of $36.3 million in 2006.
     Credit Quality — “Non-performing loans increased from $165.4 million at September 30, 2007 to $178.6 million at December 31, 2007. As a result, the ratio of non-performing loans to total loans increased from 3.53% at September 30, 2007 to 3.87% at December 31, 2007, and the ratio of non-performing assets to total loans plus other assets increased from 3.74% at September 30, 2007 to 4.10% at December 31, 2007. For the quarter ended December 31, 2007, the bank experienced net charge-offs of $7.9 million, including consumer net charge-offs of $4.0 million, representing primarily home equity lines of credit, where the value of the underlying collateral has declined.
     “The provision for loan loss in the fourth quarter of 2007 was $9.5 million or 0.82% of average loans versus $8.2 million or 0.70% of average loans for the fourth quarter of 2006 and $48.9 million or 4.17% of average loans for the third quarter of 2007. The allowance for loan losses increased to $94.0 million (2.04% of total loans) at December 31, 2007 compared to $43.6 million (0.94% of total loans) at December 31, 2006. Characteristics of our Commercial Real Estate, Residential and Consumer loan portfolios are detailed below.
     Commercial Real Estate Loans — “The Bank’s Commercial Real Estate loan portfolio at December 31, 2007 totaled $1.3 billion, including the following categories, where we believe we have the most exposure to declines in the real estate market:

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•   Builder land bank loans: This category of 12 loans aggregates $149.6 million, of which 6 loans totaling $86.5 million are non-accrual. At September 30, 2007, this category included 13 loans aggregating $149.3 million, of which five loans totaling $81.1 million were non-accrual.
•   Land acquisition and development loans: This category of 34 loans aggregates $194.9 million, of which two loans totaling $7.3 million are non-accrual. At September 30, 2007, this category included 37 loans aggregating $218.5 million, of which three loans totaling $13.2 million were non-accrual.
•   Land acquisition, development and construction loans: This category of 29 loans aggregates $151.6 million, of which 7 loans totaling $57.2 million are non-accrual. At September 30, 2007, this category included 33 loans aggregating $187.7 million, of which seven loans totaling $62.0 million were non-accrual.
     We believe we are making progress and will continue to aggressively monitor this real estate loan portfolio. Of the non-accrual Commercial Real Estate loans at December 31, 2007, approximately $101.2 million are in various stages of negotiation and the balance of $58.1 million is in active litigation. In summary, there were 19 Commercial Real Estate loans totaling $159.3 million on non-accrual at December 31, 2007, compared to 15 loans totaling $156.3 million at September 30, 2007. While we are pleased the numbers have stabilized, we do not anticipate that the real estate housing market in Florida will improve in the near-term. We are continuing to closely work with our borrowers; but additional provisions relating to this portfolio may be required.
     Purchased Residential Loans— “Our Purchased Residential loan portfolio was $2.1 billion at quarter-end, representing approximately 47.0% of the Bank’s total loans. As we have previously indicated, this portfolio does not include subprime or negative amortizing loans, is geographically diverse, the weighted average FICO score in this portfolio was 741 at the time of origination, the weighted average original loan-to-value of the portfolio was 67.0%, and the original back end debt ratio was a weighted average of 32.8%. As of December 31, 2007, the average time to payment reset was 66.6 months. Quarter-end delinquencies, including non-accrual loans, were 0.77% of the unpaid principal balance, versus 0.32% in the fourth quarter of 2006 and 0.50% in the third quarter of 2007. Non-accrual balances increased to $6.9 million at December 31, 2007 from $4.1 million at September 30, 2007, and $1.6 million at December 31,

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2006. The average loan-to-value of non-accrual balances at December 31, 2007, based on updated property values, was 60.0%, and our loss history on this portfolio over the past twelve months was very low at 0.02% of the average outstanding balances or $404,000. While this portfolio has experienced an increase in delinquencies and non-accruals which we anticipate may continue as the housing market remains weak, based on the inherent characteristics of these loans, we continue to expect this portfolio to perform satisfactorily.
     Consumer Loans - “Our Consumer loan portfolio was $692.0 million at quarter-end, with Home Equity loans constituting approximately 98.0% of this portfolio. Delinquency trends in this portfolio have increased, and charge-offs have increased due to declining property values. At origination, these loans had a weighted average loan-to-value, inclusive of first mortgages, of 67.0%, and a weighted average Beacon score of 706. Additionally, 70.0% of the portfolio balances have Beacon scores of 700 or greater. Total delinquencies at December 31, 2007 were 1.48% versus 0.61% at December 31, 2006 and 1.34% at September 30, 2007. Non-accrual balances were stable during the quarter at $3.2 million at both December 31, 2007 and September 30, 2007, compared to $1.6 million at December 31, 2006.”
     Store Expansion Program — BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “During the fourth quarter of 2007, we opened two new stores, bringing the total to 15 stores opened in 2007. We have opened a total of 32 new stores since January 1, 2005, which as of December 31, 2007 had balances of $224.6 million in core deposits and $358.3 million in total deposits. (Core deposits include DDA, NOW and savings accounts.) For 2007, the new stores have generated net growth of $132.4 million in core deposits, $195.0 million of total deposits, and over 84,000 of new core deposit accounts. Because of the time required for newly opened stores to breakeven, the expenses associated with BankAtlantic’s store expansion program negatively impacted BankAtlantic’s fourth quarter pre-tax income by approximately $3.2 million and had a $14.2 million impact on the full year pre-tax income. As of quarter-end, we had a total of 103 stores throughout Florida.
     “While we remain committed to store expansion in the long-term, we have decided to reduce our new store openings in 2008 to the four originally planned for the first quarter of 2008. We will reevaluate our expansion plans as the economic environment improves. Related to our decision to slow store expansion, we are considering exiting the Orlando market or selling the

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four stores currently open as well as three sites acquired for future development in the Orlando market, as we will not have a sufficient presence in the short-term to justify being in this market.
     Deposit Accounts and Balances — “At quarter-end, ‘total bank’ and ‘same store’ core deposit balances increased 2.9% and 2.4%, respectively, over the fourth quarter of 2006, representing a total bank net increase of $64.5 million in core deposits and $86.4 million in total deposits. In the fourth quarter of 2007, in spite of economic pressures in our markets combined with a significant reduction in advertising and marketing expense, new account openings remained strong, with BankAtlantic opening over 57,000 new core deposit accounts.
     Net Interest Margin and Earning Assets — “Net interest income for the fourth quarter of 2007 was $47.3 million compared to $54.1 million in the corresponding 2006 quarter, reflecting a 55 basis point decline in the tax equivalent net interest margin. The tax equivalent net interest margin was 3.41% in the fourth quarter of 2007, down from 3.96% in the corresponding quarter of 2006, reflecting the increase of $171.1 million in non-performing assets between periods, a 21 basis point or $3.1 million incremental negative impact to the net interest margin in the fourth quarter of 2007, as well as an increase of 30 basis points in the cost of interest bearing deposits since the fourth quarter 2006 due to ongoing competitive pressures affecting our deposit pricing. Average loans were essentially flat from the fourth quarter of 2006, decreasing $1.1 million. Average core deposits increased $150.9 million or 7.0% and average total deposits increased $183.4 million or 4.9%, respectively, over the fourth quarter of 2006.
     Non-interest income — “Non-interest income for the fourth quarter 2007 was $36.3 million compared to $36.2 million in the fourth quarter 2006. For the full year, non-interest income was $143.9 million, a 9.1% increase over 2006 non-interest income of $131.8 million. Non-interest income in the 2006 year included a $1.5 million gain associated with debt redemption. Non-interest income increased as a result of the growth of accounts of 10.0% over 2006 and the fees related to these accounts; net fees per account were lower in the fourth quarter of 2007 compared to fourth quarter 2006, resulting in the unchanged non-interest income level for the quarter.

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     Non-interest expense — “Non-interest expense for the fourth quarter 2007 was $81.6 million, or $3.1 million greater than the fourth quarter of 2006. The fourth quarter 2007 expenses included $5.7 million in restructuring costs (related primarily to certain land and leases that are now held for sale or determined to no longer be of use due to the decision to defer store expansion and other operational consolidation efforts) and $2.5 million in increased expense from the fourth quarter of 2006 to fourth quarter of 2007 related to our store expansion program. Non-interest expense for 2007 was $313.4 million versus $293.4 million for 2006. Expenses in 2007 reflected $12.0 million in impairment charges associated with real estate owned and real estate held for sale, $8.4 million of restructuring costs and exit activities, $17.9 million in increased expenses over 2006 related to our store expansion program, and a decrease of $15.0 million in advertising and marketing expenses from 2006; 2006 expenses included $1.5 million of costs associated with debt redemption. Excluding the impairment and restructuring expenses in 2007, our expenses were nearly flat from 2006. We are pleased that we have been successful in effectively offsetting the incremental cost of our store expansion with efficiencies in our marketing and operations during 2007.
     “In summary, we continue to work with our residential land borrowers and to closely monitor the performance of our other loan portfolios. We believe that we made progress in our efforts to reduce non-interest expenses, and we will continue to evaluate available opportunities to further reduce expenses and improve profitability,” concluded Jarett S. Levan.
BankAtlantic Bancorp:
     BankAtlantic Bancorp’s Chairman and CEO, Alan B. Levan, further commented, “During the quarter, the Parent Company only financials reflected a $3.3 million impairment of a $5.0 million investment in a private investment partnership due to a substantial deterioration in market value. This is the only Parent Company investment reflecting an impairment at December 31, 2007; of the $194.9 million in book value of cash and securities held at the Parent Company, $114.7 million is represented by Stifel Financial Corporation stock and warrants, and the remaining $80.2 million is invested in cash and other investments with no unrealized investment losses at period-end.

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     Stifel Investments —“In January 2008, we sold 250,000 shares of Stifel Financial Corp. common stock to Stifel at book value for proceeds of approximately $10.6 million. We continue to hold 2,127,354 shares of Stifel common stock and warrants to purchase 481,724 shares of Stifel common stock at an exercise price of $36 per share. At quarter-end, the aggregate fair-value of these holdings was approximately $117.8 million. We recorded a $2.7 million pre-tax loss for the quarter associated with the change in value of the warrants in the fourth quarter of 2007; for the full year 2007, we recorded a net gain of $0.3 million on the change in the warrant valuation since inception. 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.
     Litigation — “During the quarter, several lawsuits were filed against the Company and its directors and certain members of management relating to BankAtlantic’s loan portfolio and provisions for loan losses including allegations, based on an erroneous publication, that the Bank made a loan to a since-defaulted borrower without obtaining an appraisal for the property. While we normally do not comment on pending litigation, we believe that it is important to correct any suggestion that an appraisal was not obtained. In fact, we did obtain an appraisal as well as an independent review of that appraisal, prior to making the subject loan.
     Cash Dividend — “BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.005 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on January 3rd, 2008. The fourth quarter’s dividend declaration marked BankAtlantic Bancorp’s 58th consecutive quarterly dividend payment.
     “Since 1984 we have experienced three significant downturns. In each case, we followed a similar formula to reduce expenses, focus on credit, and position our revenue channels for future growth. While each downturn is different, we believe this formula will serve us well during the current times,” concluded Alan B. Levan.
Financial Highlights:
Fourth Quarter, 2007 Compared to Fourth Quarter, 2006
BankAtlantic Bancorp — consolidated:
  •   (Loss) from continuing operations of ($9.9) million versus income of $1.0 million
 
  •   Diluted (loss) earnings per share from continuing operations of ($0.18) versus $0.02

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  •   Return on average tangible equity from continuing operations was (10.0%) versus 0.92%
 
  •   Book value per share was $8.19 versus $8.60
BankAtlantic:
  •   Business segment (loss) income was ($3.4) million versus $3.6 million
 
  •   Over 57,000 new core deposit accounts opened versus over 73,000
 
  •   Return on average tangible assets was (0.22%) versus 0.24%
 
  •   Return on average tangible equity was (2.80%) versus 2.86%
 
  •   Tax equivalent net interest margin decreased to 3.41% versus 3.96%
 
  •   Non-interest income was $36.3 million versus $36.2 million in 2006, an increase of 0.4%
 
  •   Non-interest expense was $81.6 million versus $78.5 million, an increase of 4.0%; before the $5.7 million of restructuring and exit activities in 2007, non-interest expense was $75.9 million versus $78.5 million in 2006, a decrease of 3.3%
Year-to-date 2007 Compared to Year-to-date 2006
BankAtlantic Bancorp — consolidated:
  •   (Loss) from continuing operations was ($30.0) million versus income of $26.9 million
 
  •   Diluted (loss) earnings per share from continuing operations was ($0.52) versus $0.43
 
  •   Return on average tangible equity from continuing operations was (6.95%) versus 6.00%
BankAtlantic:
  •   Business segment (loss) income was ($19.4) million versus $36.3 million
 
  •   Over 257,000 new core deposit accounts opened versus over 269,000
 
  •   Return on average tangible assets was (0.32%) versus 0.61%
 
  •   Return on average tangible equity was (3.89%) versus 7.35%
 
  •   Non-interest income was $143.9 million versus $131.8 million in 2006, an increase of 9.1%; before $1.5 million of gains associated with debt redemption in 2006, non-interest income was $143.9 million versus $130.3 million in 2006, an increase of 10.0%
 
  •   Non-interest expense was $313.4 million versus $293.4 million in 2006, an increase of 6.8%; before the $12.0 million impairment charge associated with real estate owned and real estate held for sale and the $8.4 million of restructuring and exit activities in 2007 and the $1.5 million costs associated with debt redemption in 2006, non-interest expense

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      grew to $293.0 million versus $292.0 million, an increase of 0.3% while absorbing approximately $17.9 million in increased expenses in 2007 over 2006 related to our store expansion program
     
 
BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Wednesday, January 30, 2008, at 11:00 a.m. (Eastern Time).
Teleconference Call Information:
     To access the teleconference call in the U.S. and Canada, the toll free number to call is 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number 29942381.
     A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Wednesday, February 13, 2008. To access the replay option in the U.S. and Canada, the toll free number to call is 1-800-642-1687. International calls for the replay may be placed at 706-645-9291. The replay digital PIN number for both domestic and international calls is 29942381.
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=44769. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Wednesday, February 13, 2008.
     BankAtlantic Bancorp’s fourth quarter and full year, 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 fourth quarter and full year, 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.

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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 an approximate 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 located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, Totally Free Online Banking & Bill Pay, 7-Day Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift. For further information visit www.BankAtlantic.com
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

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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 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 performance of our loan portfolio, 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, development loans (including “Builder land bank loans”), Home Equity 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 stores and achieving growth and profitability at stores in the time frames anticipated, if at all; and the impact of periodic testing of goodwill, deferred tax assets, 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 Three Months Ended   For the Year Ended
            12/31/2007   9/30/2007   6/30/2007   3/31/2007   12/31/2006   12/31/2007   12/31/2006
Earnings (in thousands):
                                                                
Net (loss) income from continuing operations
           $ (9,926 )     (29,610 )     11,728       (2,204 )     1,048       (30,012 )     26,879  
Net (loss) income
           $ (9,926 )     (29,610 )     11,620       5,716       (1,670 )     (22,200 )     15,387  
 
                                                                
Average Common Shares Outstanding (in thousands):
                                                                
Basic
             56,054       56,832       59,190       60,635       61,007       58,162       61,095  
Diluted
             56,054       56,832       59,929       60,635       62,278       58,162       62,563  
 
                                                                
Key Performance Ratios
                                                                
Basic (loss) earnings per share from continuing operations
           $ (0.18 )     (0.52 )     0.20       (0.04 )     0.02       (0.52 )     0.44  
Diluted (loss) earnings per share from continuing operations
           $ (0.18 )     (0.52 )     0.20       (0.04 )     0.02       (0.52 )     0.43  
Basic (loss) earnings per share
           $ (0.18 )     (0.52 )     0.20       0.09       (0.03 )     (0.38 )     0.25  
Diluted (loss) earnings per share
           $ (0.18 )     (0.52 )     0.19       0.09       (0.03 )     (0.38 )     0.25  
Return on average tangible assets from continuing operations
   (note 1)   % (0.63 )     (1.85 )     0.74       (0.14 )     0.07       (0.47 )     0.42  
Return on average tangible equity from continuing operations
   (note 1)   % (9.96 )     (27.45 )     10.47       (1.96 )     0.92       (6.95 )     6.00  
 
                                                                
Average Balance Sheet Data (in millions):
Assets
           $ 6,354       6,479       6,407       6,439       6,520       6,420       6,413  
Tangible assets
   (note 1)   $ 6,278       6,402       6,330       6,358       6,436       6,342       6,328  
Loans
           $ 4,654       4,693       4,678       4,651       4,655       4,669       4,589  
Investments
           $ 1,172       1,244       1,194       1,142       1,141       1,207       1,115  
Deposits and escrows
           $ 3,960       3,984       4,048       3,902       3,776       3,974       3,796  
Stockholders’ equity
           $ 471       506       525       529       533       508       525  
Tangible stockholders’ equity
   (note 1)   $ 399       431       448       450       454       432       448  
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)
                 
    December 31,     December 31,  
(in thousands, except share data)   2007     2006  
ASSETS
                
Cash and cash equivalents
   $ 124,574       138,904  
Securities available for sale (at fair value)
     925,363       651,316  
Investment securities (approximate fair value: $44,110 and $209,020)
     39,617       206,682  
Financial instruments accounted for at fair value
     10,661       —  
Tax certificates net of allowance of $3,289 and $3,699
     188,401       195,391  
Loans receivable, net of allowance for loan losses of $94,020 and $43,602
     4,524,188       4,595,920  
Federal Home Loan Bank stock, at cost which approximates fair value
     74,003       80,217  
Discontinued operations assets held for sale
     —       190,763  
Real estate held for development and sale
     33,741       25,333  
Real estate owned
     17,216       21,747  
Office properties and equipment, net
     243,863       219,717  
Goodwill and other intangible assets
     75,886       77,324  
Other assets
     121,304       92,348  
 
            
Total assets
   $ 6,378,817       6,495,662  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Liabilities:
                
Deposits
                
Demand
   $ 824,211       995,920  
NOW
     900,233       779,383  
Savings
     580,497       465,172  
Money market
     624,390       677,642  
Certificates of deposit
     1,024,074       948,919  
 
            
Total deposits
     3,953,405       3,867,036  
Advances from FHLB
     1,397,044       1,517,058  
Securities sold under agreements to repurchase
     58,265       101,932  
Federal funds purchased and other short term borrowings
     108,975       32,026  
Subordinated debentures and bonds payable
     26,654       29,923  
Junior subordinated debentures
     294,195       263,266  
Discontinued operations liabilities held for sale
     —       95,246  
Other liabilities
     80,958       64,193  
 
            
Total liabilities
     5,919,496       5,970,680  
 
            
Stockholders’ equity:
                
Common stock
     561       611  
Additional paid-in capital
     216,692       260,460  
Retained earnings
     236,150       265,089  
 
            
Total stockholders’ equity before accumulated other comprehensive income (loss)
     453,403       526,160  
Accumulated other comprehensive income (loss)
     5,918       (1,178 )
 
            
Total stockholders’ equity
     459,321       524,982  
 
            
Total liabilities and stockholders’ equity
   $ 6,378,817       6,495,662  
 
            

 

BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
                                                         
    For the Three Months Ended     For the Year Ended  
(in thousands)   12/31/2007     9/30/2007     6/30/2007     3/31/2007     12/31/2006     12/31/2007     12/31/2006  
INTEREST INCOME:
                                                        
Interest and fees on loans
   $ 74,415       80,082       79,914       79,587       81,019       313,998       312,960  
Interest on securities available for sale
     8,075       4,835       4,628       4,561       4,472       22,099       17,574  
Interest on tax exempt securities
     1,266       3,838       3,800       3,796       3,817       12,700       15,289  
Interest and dividends on taxable investments and tax certificates
     5,666       6,141       5,433       5,596       6,543       22,836       21,354  
 
                                          
Total interest income
     89,422       94,896       93,775       93,540       95,851       371,633       367,177  
 
                                          
INTEREST EXPENSE:
                                                        
Interest on deposits
     21,443       22,558       21,473       19,002       17,258       84,476       58,959  
Interest on advances from FHLB
     17,443       18,987       18,103       18,723       20,837       73,256       66,492  
Interest on short-term borrowed funds
     2,068       2,940       2,010       2,555       2,505       9,573       15,089  
Interest on secured borrowings
     —       —       —       —       —       —       2,401  
Interest on long-term debt
     6,650       6,652       6,136       6,114       6,184       25,552       25,045  
Capitalized interest on real estate development
     —       —       —       —       (85 )     —       (929 )
 
                                          
Total interest expense
     47,604       51,137       47,722       46,394       46,699       192,857       167,057  
 
                                          
NET INTEREST INCOME
     41,818       43,759       46,053       47,146       49,152       178,776       200,120  
Provision for loan losses
     9,515       48,949       4,917       7,461       8,160       70,842       8,574  
 
                                          
NET INTEREST INCOME AFTER PROVISION
     32,303       (5,190 )     41,136       39,685       40,992       107,934       191,546  
 
                                          
NON-INTEREST INCOME:
                                                        
Service charges on deposits
     26,342       25,894       25,808       24,595       26,091       102,639       90,472  
Other service charges and fees
     7,171       7,222       7,524       7,033       7,188       28,950       27,542  
Securities activities, net
     (3,163 )     1,207       8,813       1,555       2,199       8,412       9,813  
Gain on sales of loans
     68       88       138       200       211       494       680  
Gain associated with debt redemption
     —       —       —       —       —       —       1,528  
Income from unconsolidated subsidiaries
     337       348       669       1,146       303       2,500       1,667  
(Loss) gain on the sale of office properties and equipment, net
     (564 )     (362 )     (42 )     (153 )     (148 )     (1,121 )     1,627  
Other
     2,254       2,225       2,574       2,376       2,581       9,429       9,287  
 
                                          
Total non-interest income
     32,445       36,622       45,484       36,752       38,425       151,303       142,616  
 
                                          
NON-INTEREST EXPENSE:
                                                        
Employee compensation and benefits
     37,922       34,258       37,908       41,090       38,759       151,178       150,804  
Occupancy and equipment
     17,026       16,954       15,927       15,944       16,247       65,851       57,308  
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
     5,659       4,276       4,209       5,858       10,400       20,002       35,067  
Professional fees
     3,067       2,542       1,368       1,713       1,632       8,690       8,291  
Costs associated with debt redemption
     —       —       —       —       —       —       1,457  
Check losses
     3,547       3,341       2,731       1,857       2,639       11,476       8,615  
Supplies and postage
     1,502       1,159       1,632       1,853       1,736       6,146       6,853  
Telecommunication
     1,348       1,286       1,556       1,381       1,233       5,571       4,785  
Restructuring charges
     5,681       117       —       2,553       —       8,351       —  
Other
     6,720       6,858       6,724       7,244       7,195       27,546       27,006  
 
                                          
Total non-interest expense
     82,472       81,679       73,177       79,493       79,841       316,821       300,186  
 
                                          
(Loss) income from continuing operations before income taxes
     (17,724 )     (50,247 )     13,443       (3,056 )     (424 )     (57,584 )     33,976  
(Benefit) provision for income taxes
     (7,798 )     (20,637 )     1,715       (852 )     (1,472 )     (27,572 )     7,097  
 
                                          
(Loss) income from continuing operations
     (9,926 )     (29,610 )     11,728       (2,204 )     1,048       (30,012 )     26,879  
Discontinued operations
     —       —       (108 )     7,920       (2,718 )     7,812       (11,492 )
 
                                          
Net (loss) income
   $ (9,926 )     (29,610 )     11,620       5,716       (1,670 )     (22,200 )     15,387  
 
                                          

 

 

BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)
                                         
    For the Three Months Ended  
(in thousands except percentages and per share data)   12/31/2007     9/30/2007     6/30/2007     3/31/2007     12/31/2006  
Loans:
                                        
Residential real estate
   $ 2,196,552       2,245,138       2,215,606       2,181,478       2,176,047  
Commercial real estate
     1,317,578       1,346,842       1,384,405       1,420,944       1,462,005  
Consumer
     697,764       662,320       635,370       606,472       584,972  
Commercial business
     132,677       134,390       147,026       156,237       155,884  
Small business
     309,322       304,388       295,483       285,387       276,103  
 
                              
Total Loans
     4,653,893       4,693,078       4,677,890       4,650,518       4,655,011  
Investments — taxable
     1,036,382       841,486       795,156       743,936       740,568  
Investments — tax exempt
     135,961       402,482       399,160       398,388       400,804  
 
                              
Total interest earning assets
     5,826,236       5,937,046       5,872,206       5,792,842       5,796,383  
Goodwill and core deposit intangibles
     76,068       76,419       76,784       81,124       83,708  
Discontinued assets held for sale
     —       —       —       118,319       232,317  
Other non-interest earning assets
     451,397       465,427       457,817       446,785       407,149  
 
                              
Total assets
   $ 6,353,701       6,478,892       6,406,807       6,439,070       6,519,557  
 
                              
Tangible assets (note 1)
   $ 6,277,633       6,402,473       6,330,023       6,357,946       6,435,849  
 
                              
 
                                        
Deposits:
                                        
Demand deposits
   $ 885,006       922,293       989,259       989,293       1,006,242  
Savings
     589,966       611,862       605,939       529,435       413,239  
NOW
     830,898       792,462       782,018       771,017       735,164  
Money market
     638,041       660,925       677,545       650,383       694,057  
Certificates of deposit
     1,015,940       996,415       993,458       961,716       927,431  
 
                              
Total deposits
     3,959,851       3,983,957       4,048,219       3,901,844       3,776,133  
Short-term borrowed funds
     182,134       225,034       151,656       197,683       189,519  
FHLB advances
     1,368,242       1,398,245       1,344,855       1,405,279       1,528,039  
Long-term debt
     321,885       318,762       293,489       292,899       293,592  
 
                              
Total borrowings
     1,872,261       1,942,041       1,790,000       1,895,861       2,011,150  
Discontinued liabilities held for sale
     —       —       —       61,202       141,254  
Other liabilities
     50,554       46,805       43,465       50,722       57,832  
 
                              
Total liabilities
     5,882,666       5,972,803       5,881,684       5,909,629       5,986,369  
 
                              
Stockholders’ equity
     471,035       506,089       525,123       529,441       533,188  
 
                              
Total liabilities and stockholders’ equity
   $ 6,353,701       6,478,892       6,406,807       6,439,070       6,519,557  
 
                              
Other comprehensive (loss) income in stockholders’ equity
     (3,562 )     (1,765 )     377       (2,142 )     (4,379 )
 
                              
Tangible stockholders’ equity (note 1)
   $ 398,529       431,435       447,962       450,459       453,859  
 
                              
Net Interest Margin
     2.95 %     3.11 %     3.27 %     3.35 %     3.56 %
 
                              
 
                                        
Period End
                                        
Total loans, net
   $ 4,524,188       4,586,625       4,618,690       4,622,784       4,595,920  
Total assets
     6,378,817       6,485,593       6,495,047       6,380,176       6,495,662  
Total stockholders’ equity
     459,321       471,889       512,724       514,977       524,982  
Class A common shares outstanding
     51,196,175       51,168,201       53,212,871       54,956,368       56,157,425  
Class B common shares outstanding
     4,876,124       4,876,124       4,876,124       4,876,124       4,876,124  
Cash dividends
     281,130       2,315,458       2,386,145       2,458,490       2,507,673  
Common stock cash dividends per share
     0.005       0.0412       0.0410       0.0410       0.0410  
Closing stock price
     4.10       8.67       8.61       10.96       13.81  
High stock price for the quarter
     9.60       9.25       11.25       13.98       13.94  
Low stock price for the quarter
     2.89       7.50       8.38       10.87       12.66  
Book value per share
     8.19       8.42       8.83       8.61       8.60  

 

 

Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)
                                                         
    For the Three Months Ended     For the Year Ended  
(in thousands)   12/31/2007     9/30/2007     6/30/2007     3/31/2007     12/31/2006     12/31/2007     12/31/2006  
Net interest income
   $ 47,291       49,235       50,914       52,070       54,103       199,510       219,605  
Provision for loan losses
     9,515       48,949       4,917       7,461       8,160       70,842       8,574  
 
                                          
Net interest income after provision for loan losses
     37,776       286       45,997       44,609       45,943       128,668       211,031  
 
                                          
Non-interest income
                                                        
Service charges on deposits
     26,342       25,894       25,808       24,595       26,091       102,639       90,472  
Other service charges and fees
     7,171       7,222       7,524       7,033       7,188       28,950       27,542  
Securities activities, net
     861       613       212       621       200       2,307       657  
Gain on sales of loans
     68       88       138       200       211       494       680  
Gain associated with debt redemption
     —       —       —       —       —       —       1,528  
Income from unconsolidated subsidiaries
     163       182       509       365       33       1,219       33  
(Loss) gain on the sale of office properties, net
     (564 )     (362 )     (42 )     (153 )     (148 )     (1,121 )     1,627  
Other non-interest income
     2,249       2,224       2,535       2,386       2,590       9,394       9,305  
 
                                          
Total non-interest income
     36,290       35,861       36,684       35,047       36,165       143,882       131,844  
 
                                          
Non-interest expense
                                                        
Employee compensation and benefits
     37,221       34,244       36,628       40,664       37,709       148,757       146,099  
Occupancy and equipment
     17,023       16,951       15,923       15,942       16,242       65,839       57,291  
Impairment of real estate held for sale
     —       3,655       1,056       —       —       4,711       —  
Impairment of real estate owned
     —       7,233       66       —       —       7,299       —  
Advertising
     5,596       4,221       4,079       5,788       10,331       19,684       34,659  
Professional fees
     2,969       2,444       1,233       1,620       1,576       8,266       7,653  
Costs associated with debt redemption
     —       —       —       —       —       —       1,457  
Check losses
     3,547       3,341       2,731       1,857       2,639       11,476       8,615  
Supplies and postage
     1,441       1,158       1,629       1,850       1,735       6,078       6,833  
Telecommunication
     1,342       1,283       1,548       1,379       1,230       5,552       4,774  
Restructuring and exit activities
     5,681       117       —       2,553       —       8,351       —  
Other
     6,761       6,848       6,629       7,117       7,017       27,355       26,067  
 
                                          
Total non-interest expense
     81,581       81,495       71,522       78,770       78,479       313,368       293,448  
 
                                          
(Loss) income from bank operations business segment before income taxes
     (7,515 )     (45,348 )     11,159       886       3,629       (40,818 )     49,427  
(Benefit) provision for income taxes
     (4,143 )     (18,236 )     754       247       11       (21,378 )     13,105  
 
                                          
Net (loss) income from bank operations business segment
   $ (3,372 )     (27,112 )     10,405       639       3,618       (19,440 )     36,322  
 
                                          

 

 

Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)
                                                         
    For the Three Months Ended   For the Year Ended
(in thousands except percentages and per share data)   12/31/2007   9/30/2007   6/30/2007   3/31/2007   12/31/2006   12/31/2007   12/31/2006
Statistics:
                                                        
Tax equivalent:
                                                        
Average earning assets
   $ 5,653,913       5,750,192       5,690,488       5,666,507       5,702,063       5,690,404       5,606,272  
Average interest bearing liabilities
   $ 4,656,897       4,718,381       4,590,419       4,551,448       4,520,332       4,629,819       4,377,033  
Average tangible assets
   $ 6,080,693       6,194,549       6,127,470       6,092,568       6,086,579       6,123,978       5,976,464  
Average tangible equity
   $ 481,495       507,963       504,091       502,827       505,580       499,158       493,972  
Borrowings to deposits and borrowings
   % 28.74       29.89       28.74       26.39       30.36       28.74       30.36  
Tax equivalent:
                                                        
Yield on earning assets
   % 6.33       6.71       6.70       6.71       6.83       6.61       6.65  
Cost of interest-bearing liabilities
   % 3.54       3.80       3.70       3.65       3.62       3.67       3.34  
Interest spread
   % 2.79       2.91       3.00       3.06       3.21       2.94       3.31  
Net interest margin
   % 3.41       3.59       3.72       3.78       3.96       3.62       4.04  
Performance:
                                                        
Efficiency ratio
   % 97.61       95.77       81.65       90.42       86.94       91.26       83.50  
Return on average tangible assets
   % (0.22 )     (1.75 )     0.68       0.04       0.24       (0.32 )     0.61  
Return on average tangible equity
   % (2.80 )     (21.35 )     8.26       0.51       2.86       (3.89 )     7.35  
Earning assets repricing:
                                                        
Percent of earning assets that have fixed rates
   % 54       54       54       54       52                  
Percent of earning assets that have variable rates
   % 46       46       46       46       48                  
One year Gap
   % (3 )     (9 )     (7 )     (3 )     (4 )                

 

 

Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)
                                         
    As of  
(in thousands)   12/31/2007     9/30/2007     6/30/2007     3/31/2007     12/31/2006  
ASSETS
                                        
Loans receivable, net
   $ 4,524,188       4,586,625       4,618,690       4,622,784       4,595,920  
Investment securities
     262,404       482,666       507,593       424,487       475,790  
Available for sale securities
     789,917       570,624       563,318       556,404       559,629  
Goodwill
     70,489       70,489       70,489       70,489       70,489  
Core deposit intangible asset
     5,397       5,747       6,097       6,447       6,834  
Other assets
     509,567       557,951       505,874       495,098       478,460  
 
                              
Total assets
   $ 6,161,962       6,274,102       6,272,061       6,175,709       6,187,122  
 
                              
 
                                        
LIABILITIES AND STOCKHOLDER’S EQUITY
                                        
Deposits
                                        
Demand
   $ 824,211       896,094       971,260       1,031,628       995,930  
NOW
     900,233       801,289       769,994       799,300       779,383  
Savings
     580,497       613,010       608,791       598,579       465,172  
Money market
     624,390       656,218       666,820       653,231       677,642  
Certificates of deposit
     1,024,074       1,002,197       1,000,278       1,002,284       948,919  
 
                              
Total deposits
     3,953,405       3,968,808       4,017,143       4,085,022       3,867,046  
Advances from Federal Home Loan Bank
     1,397,044       1,417,047       1,397,051       1,297,055       1,517,058  
Short term borrowings
     170,433       245,895       193,937       137,914       138,686  
Long term debt
     26,654       29,125       29,397       29,654       29,923  
Other liabilities
     79,147       74,539       67,747       63,108       68,460  
 
                              
Total liabilities
     5,626,683       5,735,414       5,705,275       5,612,753       5,621,173  
Stockholder’s equity
     535,279       538,688       566,786       562,956       565,949  
 
                              
Total liabilities and stockholder’s equity
   $ 6,161,962       6,274,102       6,272,061       6,175,709       6,187,122  
 
                              

 

 

Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis
                                                 
    For the Three Months Ended  
    December 31, 2007     December 31, 2006  
    Average     Revenue/     Yield/     Average     Revenue/     Yield/  
(in thousands)   Balance     Expense     Rate     Balance     Expense     Rate  
Loans:
                                                
Residential real estate
   $ 2,196,552       30,175       5.49 %   $ 2,176,047       29,212       5.37 %
Commercial real estate
     1,317,578       23,273       7.07       1,462,005       31,245       8.55  
Consumer
     697,764       12,006       6.88       584,972       11,321       7.74  
Commercial business
     132,677       2,875       8.67       155,884       3,515       9.02  
Small business
     309,322       6,086       7.87       276,103       5,725       8.29  
 
                                    
Total loans
     4,653,893       74,415       6.40       4,655,011       81,018       6.96  
Investments — tax exempt
     130,850       1,860 (1)     5.69       397,105       5,806 (1)     5.85  
Investments — taxable
     869,170       13,262       6.10       649,947       10,512       6.47  
 
                                    
Total interest earning assets
     5,653,913       89,537       6.33 %     5,702,063       97,336       6.83 %
 
                                        
Goodwill and core deposit intangibles
     76,068                       77,524                  
Other non-interest earning assets
     426,780                       384,516                  
 
                                            
Total Assets
   $ 6,156,761                     $ 6,164,103                  
 
                                            
 
Deposits:
                                                
Savings
   $ 589,967       2,946       1.98 %   $ 413,239       1,379       1.32 %
NOW
     830,898       2,533       1.21       735,164       1,327       0.72  
Money market
     638,041       4,274       2.66       694,057       4,003       2.29  
Certificates of deposit
     1,015,940       11,690       4.57       927,431       10,549       4.51  
 
                                    
Total interest bearing deposits
     3,074,846       21,443       2.77       2,769,891       17,258       2.47  
 
                                    
Short-term borrowed funds
     186,118       2,108       4.49       192,532       2,548       5.25  
Advances from FHLB
     1,368,242       17,443       5.06       1,528,039       20,837       5.41  
Long-term debt
     27,691       601       8.61       29,870       643       8.54  
 
                                    
Total interest bearing liabilities
     4,656,897       41,595       3.54       4,520,332       41,286       3.62  
Demand deposits
     885,398                       1,006,959                  
Non-interest bearing other liabilities
     61,451                       62,601                  
 
                                            
Total Liabilities
     5,603,746                       5,589,892                  
Stockholder’s equity
     553,015                       574,211                  
 
                                            
Total liabilities and stockholder’s equity
   $ 6,156,761                     $ 6,164,103                  
 
                                            
Net tax equivalent interest income/ net interest spread
             47,942       2.79 %             56,050       3.21 %
 
                                            
Tax equivalent adjustment
             (651 )                     (2,032 )        
Capitalized interest from real estate operations
             —                       85          
 
                                            
Net interest income
             47,291                       54,103          
 
                                            
 
Margin
                                                
Interest income/interest earning assets
                     6.33 %                     6.83 %
Interest expense/interest earning assets
                     2.92                       2.87  
 
                                            
Net interest margin (tax equivalent)
                     3.41 %                     3.96 %
 
                                            
 
(1)   The tax equivalent basis is computed using a 35% tax rate.

 

Bank Operations
Average Balance Sheet — Yield / Rate Analysis
                                                 
    For the Year Ended  
    December 31, 2007     December 31, 2006  
    Average     Revenue/     Yield/     Average     Revenue/     Yield/  
(in thousands)   Balance     Expense     Rate     Balance     Expense     Rate  
Loans:
                                                
Residential real estate
   $ 2,209,832       120,768       5.47 %   $ 2,099,664       109,103       5.20 %
Commercial real estate
     1,367,095       108,931       7.97       1,499,388       126,019       8.40  
Loan participations sold
     —       —       —       30,894       2,401       7.77  
Consumer
     650,764       47,625       7.32       558,769       41,997       7.52  
Commercial business
     142,455       12,720       8.93       140,465       12,452       8.86  
Small business
     298,774       23,954       8.02       259,816       20,988       8.08  
 
                                    
Total loans
     4,668,920       313,998       6.73       4,588,996       312,960       6.82  
Investments — tax exempt
     328,583       19,272 (1)     5.87       396,539       23,162 (1)     5.84  
Investments — taxable
     692,901       43,044       6.21       620,737       36,934       5.95  
 
                                    
Total interest earning assets
     5,690,404       376,314       6.61 %     5,606,272       373,056       6.65 %
 
                                        
Goodwill and core deposit intangibles
     76,599                       78,104                  
Other non-interest earning assets
     433,574                       370,192                  
 
                                            
Total Assets
   $ 6,200,577                     $ 6,054,568                  
 
                                            
 
                                                
Deposits:
                                                
Savings
   $ 584,542       12,559       2.15 %   $ 369,504       2,936       0.79 %
NOW
     794,258       8,149       1.03       746,837       4,433       0.59  
Money market
     656,702       17,882       2.72       755,221       15,980       2.12  
Certificates of deposit
     992,043       45,886       4.63       868,777       35,610       4.10  
 
                                    
Total deposits
     3,027,545       84,476       2.79       2,740,339       58,959       2.15  
 
                                    
Short-term borrowed funds
     194,222       9,829       5.06       304,635       15,309       5.03  
Advances from FHLB
     1,379,106       73,256       5.31       1,265,772       66,492       5.25  
Secured borrowings
     —       —       —       30,894       2,401       7.77  
Long-term debt
     28,946       2,498       8.63       35,393       3,112       8.79  
 
                                    
Total interest bearing liabilities
     4,629,819       170,059       3.67       4,377,033       146,273       3.34  
Demand deposits
     946,356                       1,056,254                  
Non-interest bearing other liabilities
     55,683                       61,392                  
 
                                            
Total Liabilities
     5,631,858                       5,494,679                  
Stockholder’s equity
     568,719                       559,889                  
 
                                            
Total liabilities and stockholder’s equity
   $ 6,200,577                     $ 6,054,568                  
 
                                            
Net interest income/net interest spread
             206,255       2.94 %             226,783       3.31 %
 
                                            
Tax equivalent adjustment
             (6,745 )                     (8,107 )        
Capitalized interest from real estate operations
             —                       929          
 
                                            
Net interest income
             199,510                       219,605          
 
                                            
 
                                                
Margin
                                                
Interest income/interest earning assets
                     6.61 %                     6.65 %
Interest expense/interest earning assets
                     2.99                       2.61  
 
                                            
Net interest margin
                     3.62 %                     4.04 %
 
                                            
 
                                                
Net interest margin (tax equivalent) excluding secured borrowings
                     3.62 %                     4.07 %
 
                                            
 
(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 Three Months Ended     For the Year Ended  
(in thousands)   12/31/2007     9/30/2007     6/30/2007     3/31/2007     12/31/2006     12/31/2007     12/31/2006  
Allowance for Loan Losses
                                                        
 
                                                        
Beginning balance
   $ 92,358       54,754       50,373       43,602       42,517       43,602       41,192  
 
                                                        
Charge-offs:
                                                        
Residential real estate
     (255 )     (3 )     (52 )     (151 )     —       (461 )     (239 )
Commercial real estate
     (3,118 )     (9,444 )     —       —       (7,000 )     (12,562 )     (7,000 )
Commercial business
     —       —       —       —       —       —       (34 )
Consumer
     (4,094 )     (1,689 )     (744 )     (538 )     (209 )     (7,065 )     (681 )
Small business
     (534 )     (581 )     (1,001 )     (438 )     (544 )     (2,554 )     (951 )
 
                                          
Total charge-offs
     (8,001 )     (11,717 )     (1,797 )     (1,127 )     (7,753 )     (22,642 )     (8,905 )
 
                                          
 
                                                        
Recoveries:
                                                        
Residential real estate
     —       —       15       —       —       15       348  
Commercial real estate
     —       —       304       —       —       304       19  
Commercial business
     14       29       777       42       379       862       660  
Consumer
     49       120       81       167       76       417       536  
Small business
     85       223       84       228       114       620       566  
Other
     —       —       —       —       109       —       612  
 
                                          
Total recoveries
     148       372       1,261       437       678       2,218       2,741  
 
                                          
Net (charge-offs) recoveries
     (7,853 )     (11,345 )     (536 )     (690 )     (7,075 )     (20,424 )     (6,164 )
 
                                          
Provision for loan losses
     9,515       48,949       4,917       7,461       8,160       70,842       8,574  
 
                                          
Ending balance
   $ 94,020       92,358       54,754       50,373       43,602       94,020       43,602  
 
                                          
Annualized net charge-offs (recoveries) to average loans
   % 0.67       0.97       0.05       0.06       0.61       0.44       0.14  
 
                                          
                                         
    As of  
    12/31/2007     9/30/2007     6/30/2007     3/31/2007     12/31/2006  
Credit Quality
                                        
 
                                        
Nonaccrual loans
   $ 178,591       165,369       21,806       25,746       4,436  
Nonaccrual tax certificates
     2,094       1,140       711       597       631  
Real estate owned
     17,216       17,159       23,886       23,135       21,747  
Other repossessed assets
     —       —       —       —       —  
 
                              
Total nonperforming assets, gross
     197,901       183,668       46,403       49,478       26,814  
 
                              
 
                                        
Nonperforming assets, gross to total loans and other assets
   % 4.10       3.74       0.94       1.02       0.55  
Allowance for loan losses to total loans
  % 2.04       1.97       1.17       1.08       0.94  
Provision to average loans
   % 0.82       4.17       0.42       0.64       0.70  
Allowance to nonaccrual loans
   % 52.65       55.85       251.10       195.65       982.91  
 
(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 Three Months Ended     For the Year Ended  
(in thousands)   12/31/2007     9/30/2007     6/30/2007     3/31/2007     12/31/2006     12/31/2007     12/31/2006  
Net interest (expense)
   $ (5,473 )     (5,476 )     (4,861 )     (4,924 )     (4,952 )     (20,734 )     (19,485 )
Non-Interest income
                                                        
Income from unconsolidated subsidiaries
     174       167       159       781       270       1,281       1,634  
Securities activities, net
     (4,024 )     594       8,601       934       2,000       6,105       9,156  
Other
     275       156       254       179       —       864       —  
 
                                          
Non-interest income
     (3,575 )     917       9,014       1,894       2,270       8,250       10,790  
 
                                          
Non-interest expense
                                                        
Employee compensation and benefits
     701       14       1,280       426       1,050       2,421       4,705  
Advertising and promotion
     62       55       130       70       70       317       408  
Professional fees
     98       98       135       93       56       424       638  
Other
     300       173       324       323       194       1,120       1,005  
 
                                          
Non-interest expense
     1,161       340       1,869       912       1,370       4,282       6,756  
 
                                          
(Loss) income from parent company activities before income taxes
     (10,209 )     (4,899 )     2,284       (3,942 )     (4,052 )     (16,766 )     (15,451 )
(Benefit) provision for income taxes
     (3,655 )     (2,401 )     961       (1,099 )     (1,484 )     (6,194 )     (6,008 )
 
                                          
Net (loss) income from parent company business segment
   $ (6,554 )     (2,498 )     1,323       (2,843 )     (2,568 )     (10,572 )     (9,443 )
 
                                          
Condensed Statements of Financial Condition — Unaudited
                                         
    As of  
(in thousands)   12/31/2007     9/30/2007     6/30/2007     3/31/2007     12/31/2006  
ASSETS
                                        
Cash
   $ 9,163       12,540       28,332       14,699       4,852  
Securities
     185,724       201,155       193,979       194,257       103,218  
Investment in subsidiaries
     535,281       538,691       566,787       562,958       661,467  
Investment in unconsolidated subsidiaries
     8,820       8,839       8,685       7,910       11,996  
Other assets
     16,339       8,466       8,370       2,929       12,165  
 
                              
Total assets
   $ 755,327       769,691       806,153       782,753       793,698  
 
                              
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                        
Subordinated debentures and notes payable
   $ 294,195       294,195       289,040       263,266       263,266  
Other liabilities
     1,811       3,607       4,389       4,510       5,450  
 
                              
Total liabilities
     296,006       297,802       293,429       267,776       268,716  
 
                              
Stockholders’ equity
     459,321       471,889       512,724       514,977       524,982  
 
                                          
Total liabilities and stockholders’ equity
   $ 755,327       769,691       806,153       782,753       793,698