SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2004
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.
| 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 þ No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act)
Yes þ No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
| Title of Each Class | Outstanding at May 3, 2004 |
|
| Class A Common Stock, par value $0.01 per share Class B Common Stock, par value $0.01 per share |
54,460,900 4,876,124 |
TABLE OF CONTENTS
Part I. FINANCIAL INFORMATION
[THIS PAGE INTENTIONALLY LEFT BLANK]
Part I. FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
| March 31, | December 31, | March 31, | ||||||||||
| (In thousands, except share data) |
2004 |
2003 |
2003 |
|||||||||
ASSETS |
||||||||||||
Cash and due from depository institutions |
$ | 114,849 | $ | 119,882 | $ | 139,940 | ||||||
Federal funds sold and securities purchased under resell agreements |
1,953 | — | — | |||||||||
Securities owned (at fair value) |
122,114 | 124,565 | 154,319 | |||||||||
Securities available for sale (at fair value) |
358,665 | 358,511 | 740,003 | |||||||||
Investment securities and tax certificates (approximate fair value: |
||||||||||||
$139,075, $192,706 and $175,876) |
139,075 | 192,706 | 175,436 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value |
30,340 | 40,325 | 65,443 | |||||||||
Loans receivable, net of allowance for loan losses of $45,383,
$45,595 and $48,695 |
3,674,173 | 3,686,153 | 3,881,143 | |||||||||
Accrued interest receivable |
26,781 | 27,866 | 35,587 | |||||||||
Real estate held for development and sale |
24,239 | 21,803 | 238,356 | |||||||||
Investments and advances to unconsolidated subsidiaries |
7,910 | 7,910 | 96,755 | |||||||||
Office properties and equipment, net |
96,628 | 93,577 | 93,136 | |||||||||
Deferred tax asset, net |
17,751 | 22,999 | 37,523 | |||||||||
Goodwill, net |
76,674 | 76,674 | 77,878 | |||||||||
Core deposit intangible asset |
11,546 | 11,985 | 13,303 | |||||||||
Other assets |
47,785 | 46,593 | 64,517 | |||||||||
Total assets |
$ | 4,750,483 | $ | 4,831,549 | $ | 5,813,339 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Liabilities: |
||||||||||||
Deposits |
||||||||||||
Interest free checking |
$ | 748,402 | $ | 645,036 | $ | 516,404 | ||||||
NOW accounts |
567,498 | 533,888 | 446,076 | |||||||||
Savings accounts |
233,832 | 208,966 | 180,362 | |||||||||
Insured money fund savings |
870,447 | 865,590 | 820,181 | |||||||||
Certificate accounts |
723,256 | 804,662 | 920,350 | |||||||||
Total deposits |
3,143,435 | 3,058,142 | 2,883,373 | |||||||||
Advances from FHLB |
591,466 | 782,205 | 1,308,246 | |||||||||
Securities sold under agreements to repurchase |
118,465 | 138,809 | 340,983 | |||||||||
Federal funds purchased |
25,000 | — | 115,000 | |||||||||
Subordinated debentures, notes and bonds payable |
37,109 | 36,595 | 195,073 | |||||||||
Junior subordinated debentures |
263,266 | 263,266 | 252,918 | |||||||||
Securities sold but not yet purchased |
34,250 | 37,813 | 49,760 | |||||||||
Due to clearing agent |
18,328 | 8,583 | 36,982 | |||||||||
Other liabilities |
89,587 | 92,684 | 151,388 | |||||||||
Total liabilities |
4,320,906 | 4,418,097 | 5,333,723 | |||||||||
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 54,331,830, 54,396,824 and 53,516,846 shares |
543 | 544 | 535 | |||||||||
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 |
259,792 | 259,770 | 253,032 | |||||||||
Unearned compensation — restricted stock grants |
(1,134 | ) | (1,178 | ) | (1,171 | ) | ||||||
Retained earnings |
163,005 | 148,311 | 226,241 | |||||||||
Total stockholders’ equity before accumulated other comprehensive income |
422,255 | 407,496 | 478,686 | |||||||||
Accumulated other comprehensive income |
7,322 | 5,956 | 930 | |||||||||
Total stockholders’ equity |
429,577 | 413,452 | 479,616 | |||||||||
Total liabilities and stockholders’ equity |
$ | 4,750,483 | $ | 4,831,549 | $ | 5,813,339 | ||||||
See Notes to Consolidated Financial Statements — Unaudited
4
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
| For the Three Months | ||||||||
| (In thousands, except share and per share data) |
Ended March 31, |
|||||||
| 2004 |
2003 |
|||||||
Interest income: |
||||||||
Interest and fees on loans and leases |
$ | 48,936 | $ | 52,940 | ||||
Interest and dividends on securities available for sale |
3,620 | 8,657 | ||||||
Interest and dividends on other investment securities |
4,277 | 5,051 | ||||||
Broker dealer interest |
2,796 | 2,317 | ||||||
Total interest income |
59,629 | 68,965 | ||||||
Interest expense: |
||||||||
Interest on deposits |
6,973 | 11,169 | ||||||
Interest on advances from FHLB |
9,098 | 15,316 | ||||||
Interest on securities sold under agreements to repurchase and federal
funds purchased |
250 | 819 | ||||||
Interest on subordinated debentures, notes and bonds payable,
and junior subordinated debentures |
4,827 | 3,821 | ||||||
Capitalized interest on real estate development |
(307 | ) | (339 | ) | ||||
Total interest expense |
20,841 | 30,786 | ||||||
Net interest income |
38,788 | 38,179 | ||||||
Provision for (recovery from) loan losses |
(859 | ) | 850 | |||||
Net interest income after provision for (recovery from) loan losses |
39,647 | 37,329 | ||||||
Non-interest income: |
||||||||
Investment banking income |
62,445 | 51,665 | ||||||
Service charges on deposits |
11,277 | 8,558 | ||||||
Other service charges and fees |
4,637 | 3,918 | ||||||
Income from real estate operations |
305 | 1,086 | ||||||
Income from unconsolidated subsidiaries |
118 | 82 | ||||||
Securities activities, net |
72 | 384 | ||||||
Equity security litigation settlement gain |
16,782 | — | ||||||
Other |
2,671 | 2,384 | ||||||
Total non-interest income |
98,307 | 68,077 | ||||||
Non-interest expense: |
||||||||
Employee compensation and benefits |
67,180 | 57,412 | ||||||
Occupancy and equipment |
10,250 | 9,738 | ||||||
Advertising and promotion |
4,694 | 2,807 | ||||||
Amortization of intangible assets |
439 | 454 | ||||||
Cost associated with debt redemption |
11,741 | — | ||||||
Professional fees |
2,737 | 3,115 | ||||||
Communications |
3,253 | 3,829 | ||||||
Floor broker and clearing fees |
2,802 | 2,158 | ||||||
Other |
8,918 | 9,047 | ||||||
Total non-interest expense |
112,014 | 88,560 | ||||||
Income from continuing operations before income taxes |
25,940 | 16,846 | ||||||
Provision for income taxes |
9,293 | 6,028 | ||||||
Income from continuing operations |
16,647 | 10,818 | ||||||
Discontinued operations, net of tax of $1,713 |
— | 3,540 | ||||||
Net income |
$ | 16,647 | $ | 14,358 | ||||
See Notes to Consolidated Financial Statements — Unaudited (Continued)
5
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
| For the Three Months | ||||||||
| Ended March 31, |
||||||||
| 2004 |
2003 |
|||||||
Earnings per share |
||||||||
Basic earnings per share from continuing operations |
$ | 0.28 | $ | 0.19 | ||||
Basic earnings per share from discontinued operations |
— | 0.06 | ||||||
Basic earnings per share |
$ | 0.28 | $ | 0.25 | ||||
Diluted earnings per share from continuing operations |
$ | 0.26 | $ | 0.17 | ||||
Diluted earnings per share from discontinued operations |
— | 0.06 | ||||||
Diluted earnings per share |
$ | 0.26 | $ | 0.23 | ||||
Basic weighted average number of common shares outstanding |
59,257,270 | 58,171,621 | ||||||
Diluted weighted average number of common and common
equivalent shares outstanding |
63,193,034 | 64,250,488 | ||||||
Cash dividends per Class A share |
$ | 0.033 | $ | 0.031 | ||||
Cash dividends per Class B share |
$ | 0.033 | $ | 0.031 | ||||
See Notes to Consolidated Financial Statements — Unaudited
6
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
| Unearned | Accumul- | |||||||||||||||||||||||||||
| Compen- | ated | |||||||||||||||||||||||||||
| Addi- | sation | Other | ||||||||||||||||||||||||||
| Compre- | tional | Restricted | Compre- | |||||||||||||||||||||||||
| hensive | Common | Paid-in | Retained | Stock | hensive | |||||||||||||||||||||||
| (In thousands) |
Income |
Stock |
Capital |
Earnings |
Grants |
Income |
Total |
|||||||||||||||||||||
BALANCE, DECEMBER 31, 2002 |
$ | 583 | $ | 252,699 | $ | 213,692 | $ | (1,209 | ) | $ | 3,569 | $ | 469,334 | |||||||||||||||
Net income |
$ | 14,358 | — | — | 14,358 | — | — | 14,358 | ||||||||||||||||||||
Other comprehensive income, net of tax: |
||||||||||||||||||||||||||||
Unrealized loss on securities available for sale
(less income tax benefit of $1,596) |
(2,149 | ) | ||||||||||||||||||||||||||
Minimum pension liability (less income tax
benefit of $251) |
(446 | ) | ||||||||||||||||||||||||||
Unrealized loss associated with investment in
unconsolidated real estate subsidiary
(less income tax provision of $454) |
448 | |||||||||||||||||||||||||||
Accumulated gain associated with cash flow hedges
(less income tax benefit of $185) |
(376 | ) | ||||||||||||||||||||||||||
Reclassification adjustment for cash flow hedge |
130 | |||||||||||||||||||||||||||
Reclassification adjustment for net gain
included in net income |
(246 | ) | ||||||||||||||||||||||||||
Other comprehensive loss |
(2,639 | ) | ||||||||||||||||||||||||||
Comprehensive income |
$ | 11,719 | ||||||||||||||||||||||||||
Dividends on Class A Common Stock |
— | — | (1,658 | ) | — | — | (1,658 | ) | ||||||||||||||||||||
Dividends on Class B Common Stock |
— | — | (151 | ) | — | — | (151 | ) | ||||||||||||||||||||
Issuance of Class A common stock |
1 | 164 | — | — | — | 165 | ||||||||||||||||||||||
Tax effect relating to the exercise of
stock options |
— | 169 | — | — | — | 169 | ||||||||||||||||||||||
Amortization of unearned compensation -
restricted stock grants |
— | — | — | 38 | — | 38 | ||||||||||||||||||||||
Net change in accumulated other comprehensive
income, net of income taxes |
— | — | — | — | (2,639 | ) | (2,639 | ) | ||||||||||||||||||||
BALANCE, MARCH 31, 2003 |
$ | 584 | $ | 253,032 | $ | 226,241 | $ | (1,171 | ) | $ | 930 | $ | 479,616 | |||||||||||||||
BALANCE, DECEMBER 31, 2003 |
$ | 593 | $ | 259,770 | $ | 148,311 | $ | (1,178 | ) | $ | 5,956 | $ | 413,452 | |||||||||||||||
Net income |
$ | 16,647 | — | — | 16,647 | — | — | 16,647 | ||||||||||||||||||||
Other comprehensive income, net of tax: |
||||||||||||||||||||||||||||
Unrealized gains on securities available for sale
(less income tax provision of $757) |
1,412 | |||||||||||||||||||||||||||
Reclassification adjustment for net gain
included in net income |
(46 | ) | ||||||||||||||||||||||||||
Other comprehensive income |
1,366 | |||||||||||||||||||||||||||
Comprehensive income |
$ | 18,013 | ||||||||||||||||||||||||||
Dividends on Class A Common Stock |
— | — | (1,792 | ) | — | — | (1,792 | ) | ||||||||||||||||||||
Dividends on Class B Common Stock |
— | — | (161 | ) | — | — | (161 | ) | ||||||||||||||||||||
Issuance of Class A common stock |
3 | 677 | — | — | — | 680 | ||||||||||||||||||||||
Tax effect relating to the exercise of
stock options |
— | 1,522 | — | — | — | 1,522 | ||||||||||||||||||||||
Tax effect of fair value of Class A Common Stock
obtained from litigation settlement |
— | (2,181 | ) | — | — | — | (2,181 | ) | ||||||||||||||||||||
Retirement of Class A Common Stock |
(4 | ) | 4 | — | — | — | — | |||||||||||||||||||||
Amortization of unearned compensation -
restricted stock grants |
— | — | — | 44 | — | 44 | ||||||||||||||||||||||
Net change in accumulated other comprehensive
income, net of income taxes |
— | — | — | — | 1,366 | 1,366 | ||||||||||||||||||||||
BALANCE, MARCH 31, 2004 |
$ | 592 | $ | 259,792 | $ | 163,005 | $ | (1,134 | ) | $ | 7,322 | $ | 429,577 | |||||||||||||||
See Notes to Consolidated Financial Statements — Unaudited
7
BankAtlantic Bancorp, Inc.
| For the Three Months | ||||||||
| (In thousands) |
Ended March 31, |
|||||||
| 2004 |
2003 |
|||||||
Operating activities: |
||||||||
Income from continuing operations |
$ | 16,647 | $ | 10,818 | ||||
Income from discontinued operations |
— | 3,540 | ||||||
Adjustments to reconcile net income to net cash provided
in operating activities: |
||||||||
Provision (recovery) for credit losses * |
(555 | ) | 1,905 | |||||
Depreciation, amortization and accretion, net |
3,602 | 3,540 | ||||||
Amortization of intangible assets |
439 | 454 | ||||||
Change in real estate inventory |
(2,436 | ) | (16,143 | ) | ||||
Securities owned activities, net |
2,451 | 32,135 | ||||||
Cost associated with debt redemption |
11,741 | — | ||||||
Increase (decrease) in securities sold but not yet purchased |
(3,563 | ) | 11,757 | |||||
Equity in earnings of unconsolidated subsidiaries |
(118 | ) | (136 | ) | ||||
(Investments in) repayments from unconsolidated subsidiaries, net |
118 | (993 | ) | |||||
Originations and repayments of loans held for sale, net |
(7,518 | ) | 153 | |||||
Proceeds from sales of loans held for sale |
11,204 | 695 | ||||||
Gains on securities activities |
(72 | ) | (384 | ) | ||||
Equity securities litigation settlement gain |
(16,782 | ) | — | |||||
Decrease (increase) in deferred tax asset, net |
4,491 | (999 | ) | |||||
Decrease (increase) in accrued interest receivable |
1,085 | (1,731 | ) | |||||
Increase in other assets |
(3,518 | ) | (6,736 | ) | ||||
Increase (decrease) in due to clearing agent |
9,745 | (41,809 | ) | |||||
Increase (decrease) in other liabilities |
(3,756 | ) | 26,643 | |||||