SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| For the quarterly period ended September 30, 2002 | ||
| OR | ||
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _______ to _______
Commission file number 34-027228
BankAtlantic Bancorp, Inc.
(Exact name of registrant as specified in its charter)
| Florida (State or other jurisdiction of incorporation or organization) |
65-0507804 (I.R.S. Employer Identification No.) |
| 1750 East Sunrise Boulevard Ft. Lauderdale, Florida (Address of principal executive offices) |
33304 (Zip Code) |
(954) 760-5000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.
YES x NO o
Indicate the number of shares outstanding of each of the issuer’s classes of preferred and common stock as of the latest practicable date.
| Outstanding at | ||||
| Title of Each Class | November 5, 2002 | |||
Class A Common Stock, par value $0.01 per share |
53,428,662 | |||
Class B Common Stock, par value $0.01 per share |
4,876,124 | |||
TABLE OF CONTENTS
| Page | ||||
| Part I | FINANCIAL INFORMATION | |||
| Reference | ||||
| Item 1. | Financial Statements | 1-21 | ||
| Consolidated Statements of Financial Condition — September 30, 2002 and 2001 and December 31, 2001 — Unaudited | 4 | |||
| Consolidated Statements of Operations — For the Three and Nine Months Ended September 30, 2002 and 2001 — Unaudited | 5-6 | |||
| Consolidated Statements of Stockholders’ Equity and Comprehensive Income - For the Nine Months Ended September 30, 2002 and 2001 — Unaudited | 7 | |||
| Consolidated Statements of Cash Flows — For the Nine Months Ended September 30, 2002 and 2001 — Unaudited | 8-9 | |||
| Notes to Consolidated Financial Statements — Unaudited | 10-21 | |||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 22-37 | ||
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 38-40 | ||
| Item 4. | Controls and Procedures | 40 | ||
| Part II | OTHER INFORMATION | |||
| Item 1. | Legal Proceedings | 41 | ||
| Item 6. | Exhibits and Reports on Form 8-K | 41 | ||
| Signatures and Certification | 42-44 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
PART I. FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION -UNAUDITED
| September 30, | December 31, | September 30, | |||||||||||
| (In thousands, except share data) | 2002 | 2001 | 2001 | ||||||||||
ASSETS |
|||||||||||||
Cash and due from depository institutions |
$ | 167,683 | $ | 120,049 | $ | 86,201 | |||||||
Securities purchased under resell agreements |
147 | 156 | 17,280 | ||||||||||
Investment securities and tax certificates (approximate fair value: $418,047
$434,470 and $366,616) |
411,488 | 428,718 | 359,967 | ||||||||||
Loans receivable, net |
3,627,406 | 2,774,238 | 2,885,518 | ||||||||||
Securities available for sale (at fair value) |
652,203 | 843,867 | 945,105 | ||||||||||
Trading securities (at fair value) |
166,182 | 68,296 | 33,024 | ||||||||||
Accrued interest receivable |
36,603 | 33,706 | 36,113 | ||||||||||
Real estate held for development and sale and joint ventures |
251,519 | 178,273 | 173,032 | ||||||||||
Equity method investment |
59,995 | — | — | ||||||||||
Office properties and equipment, net |
91,807 | 61,685 | 61,986 | ||||||||||
Federal Home Loan Bank stock, at cost which approximates fair value |
65,224 | 56,428 | 56,428 | ||||||||||
Deferred tax asset, net |
34,261 | 17,879 | 16,669 | ||||||||||
Goodwill |
79,005 | 39,859 | 40,807 | ||||||||||
Core deposit intangible asset |
14,210 | — | — | ||||||||||
Other assets |
66,481 | 31,332 | 53,526 | ||||||||||
Total assets |
$ | 5,724,214 | $ | 4,654,486 | $ | 4,765,656 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||||
Liabilities: |
|||||||||||||
Deposits |
$ | 2,974,874 | $ | 2,276,567 | $ | 2,293,597 | |||||||
Advances from FHLB |
1,307,739 | 1,106,030 | 1,113,979 | ||||||||||
Securities sold under agreements to repurchase |
286,663 | 406,070 | 70,000 | ||||||||||
Federal funds purchased |
45,000 | 61,000 | 546,521 | ||||||||||
Subordinated debentures, notes and bonds payable |
197,195 | 131,428 | 136,906 | ||||||||||
Guaranteed preferred beneficial interests in Company’s Junior Subordinated
Debentures |
190,125 | 74,750 | 74,750 | ||||||||||
Securities sold not yet purchased |
33,034 | 38,431 | 43,273 | ||||||||||
Due to clearing agent |
81,774 | 9,962 | — | ||||||||||
Other liabilities |
150,370 | 114,575 | 114,197 | ||||||||||
Total liabilities |
5,266,774 | 4,218,813 | 4,393,223 | ||||||||||
Stockholders’ equity: |
|||||||||||||
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued and outstanding |
— | — | — | ||||||||||
Class A common stock, $.01 par value, authorized 80,000,000 shares;
issued and outstanding 53,428,662, 53,203,159 and 46,202,430 shares |
534 | 532 | 462 | ||||||||||
Class B common stock, $.01 par value, authorized 45,000,000 shares;
issued and outstanding 4,876,124, 4,876,124 and 4,876,124 shares |
49 | 49 | 49 | ||||||||||
Additional paid-in capital |
252,689 | 251,202 | 197,285 | ||||||||||
Unearned compensation — restricted stock grants |
(1,247 | ) | (1,359 | ) | (1,579 | ) | |||||||
Retained earnings |
199,155 | 170,349 | 161,534 | ||||||||||
Total stockholders’ equity before accumulated other comprehensive income |
451,180 | 420,773 | 357,751 | ||||||||||
Accumulated other comprehensive income |
6,260 | 14,900 | 14,682 | ||||||||||
Total stockholders’ equity |
457,440 | 435,673 | 372,433 | ||||||||||
Total liabilities and stockholders’ equity |
$ | 5,724,214 | $ | 4,654,486 | $ | 4,765,656 | |||||||
See Notes to Consolidated Financial Statements — Unaudited
4
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
| For the Three Months | For the Nine Months | ||||||||||||||||
| Ended September 30, | Ended September 30, | ||||||||||||||||
| (In thousands, except share and per share data) | 2002 | 2001 | 2002 | 2001 | |||||||||||||
Interest income: |
|||||||||||||||||
Interest and fees on loans and leases |
$ | 59,969 | $ | 60,372 | $ | 166,365 | $ | 185,803 | |||||||||
Interest and dividends on securities available for sale |
10,322 | 13,112 | 34,192 | 39,761 | |||||||||||||
Interest and dividends on other investment and trading securities |
13,214 | 9,595 | 33,840 | 27,423 | |||||||||||||
Total interest income |
83,505 | 83,079 | 234,397 | 252,987 | |||||||||||||
Interest expense: |
|||||||||||||||||
Interest on deposits |
16,089 | 21,410 | 48,521 | 68,943 | |||||||||||||
Interest on advances from FHLB |
15,856 | 15,476 | 46,452 | 44,837 | |||||||||||||
Interest on securities sold under agreements to repurchase
and federal funds purchased |
2,305 | 4,618 | 5,802 | 21,392 | |||||||||||||
Interest on subordinated debentures, notes and bonds payable
and guaranteed beneficial interests in Company’s Junior
Subordinated Debentures |
7,306 | 5,440 | 18,767 | 18,767 | |||||||||||||
Capitalized interest on real estate developments and joint ventures |
(1,688 | ) | (1,426 | ) | (4,519 | ) | (4,444 | ) | |||||||||
Total interest expense |
39,868 | 45,518 | 115,023 | 149,495 | |||||||||||||
Net interest income |
43,637 | 37,561 | 119,374 | 103,492 | |||||||||||||
Provision for loan losses |
2,082 | 7,258 | 10,786 | 14,059 | |||||||||||||
Net interest income after provision for loan losses |
41,555 | 30,303 | 108,588 | 89,433 | |||||||||||||
Non-interest income: |
|||||||||||||||||
Investment banking income |
53,506 | 10,944 | 106,675 | 29,999 | |||||||||||||
Net revenues from sales of real estate and joint venture activities |
8,852 | 11,241 | 33,295 | 24,582 | |||||||||||||
Income from equity method investment |
1,427 | — | 3,168 | — | |||||||||||||
Service charges on deposits |
6,684 | 3,820 | 17,234 | 11,590 | |||||||||||||
Other service charges and fees |
3,591 | 3,903 | 10,246 | 11,275 | |||||||||||||
Gains on securities activities |
186 | 2,241 | 6,308 | 4,292 | |||||||||||||
Impairment of securities |
(302 | ) | (5 | ) | (18,459 | ) | (700 | ) | |||||||||
Other |
2,683 | 2,049 | 7,316 | 6,311 | |||||||||||||
Total non-interest income |
76,627 | 34,193 | 165,783 | 87,349 | |||||||||||||
Non-interest expense: |
|||||||||||||||||
Employee compensation and benefits |
60,011 | 22,924 | 141,203 | 69,675 | |||||||||||||
Occupancy and equipment |
11,080 | 7,258 | 28,498 | 21,094 | |||||||||||||
Advertising and promotion |
3,645 | 1,943 | 9,619 | 5,862 | |||||||||||||
Amortization of intangible assets |
453 | 1,041 | 907 | 3,115 | |||||||||||||
Writedown of real estate owned |
1,400 | 126 | 1,464 | 298 | |||||||||||||
Impairment of cost over fair value of net assets acquired |
— | 6,624 | — | 6,624 | |||||||||||||
Restructuring charges and impairment writedowns |
— | 331 | 1,007 | 331 | |||||||||||||
Acquisition related charges and impairments |
(71 | ) | — | 4,925 | — | ||||||||||||
Other |
20,049 | 12,081 | 51,241 | 33,347 | |||||||||||||
Total non-interest expense |
96,567 | 52,328 | 238,864 | 140,346 | |||||||||||||
Income before income taxes, extraordinary item and
cumulative effect of a change in accounting principle |
21,615 | 12,168 | 35,507 | 36,436 | |||||||||||||
Provision for income taxes |
6,611 | 7,077 | 10,156 | 15,915 | |||||||||||||
Income before extraordinary item and cumulative
effect of a change in accounting principle |
15,004 | 5,091 | 25,351 | 20,521 | |||||||||||||
Extraordinary item (less applicable income taxes of $0 and $2,771) |
(61 | ) | — | 23,749 | — | ||||||||||||
Cumulative effect of a change in accounting principle
less applicable provision (benefit) for income taxes
of ($1,246) and $683 |
— | — | (15,107 | ) | 1,138 | ||||||||||||
Net income |
14,943 | 5,091 | 33,993 | 21,659 | |||||||||||||
Amortization of goodwill, net of tax |
— | 1,002 | — | 2,971 | |||||||||||||
Net income adjusted to exclude goodwill amortization |
$ | 14,943 | $ | 6,093 | $ | 33,993 | $ | 24,630 | |||||||||
(CONTINUED)
See Notes to Consolidated Financial Statements — Unaudited
5
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
| For the Three Months | For the Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2002 | 2001 | 2002 | 2001 | |||||||||||||
Earnings per share |
||||||||||||||||
Basic earnings per share before extraordinary item and
cumulative effect of a change in accounting principle |
$ | 0.26 | $ | 0.12 | $ | 0.44 | $ | 0.53 | ||||||||
Basic earnings per share from extraordinary item |
— | — | 0.41 | — | ||||||||||||
Basic earnings per share from cumulative effect of a change
in accounting principle |
— | — | (0.26 | ) | 0.03 | |||||||||||
Basic earnings per share |
0.26 | 0.12 | 0.59 | 0.56 | ||||||||||||
Basic earnings per share from amortization of goodwill |
— | 0.02 | — | 0.08 | ||||||||||||
Basic earnings per share adjusted for goodwill amortization |
$ | 0.26 | $ | 0.14 | $ | 0.59 | $ | 0.64 | ||||||||
Diluted earnings per share before extraordinary item and
cumulative effect of a change in accounting principle |
$ | 0.24 | $ | 0.11 | $ | 0.41 | $ | |||||||||