SECURITIES AND EXCHANGE COMMISSION
| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 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 x No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act)
Yes x No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
| Outstanding at | ||||
| Title of Each Class |
November 1, 2004 |
|||
Class A Common Stock, par value $0.01 per share
|
55,001,716 | |||
Class B Common Stock, par value $0.01 per share
|
4,876,124 | |||
| Section 302 Certification of CFO | ||||||||
| Section 302 Certification of CEO | ||||||||
| Section 906 Certification of CEO | ||||||||
| Section 906 Certification of CFO | ||||||||
TABLE OF CONTENTS
| Page |
||||||
Reference |
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| FINANCIAL INFORMATION | ||||||
| Financial Statements | 1-28 | |||||
| Consolidated Statements of Financial Condition – September 30, 2004 and 2003 and December 31, 2003 — Unaudited | 4 | |||||
| Consolidated Statements of Operations — For the Three and Nine Months Ended September 30, 2004 and 2003 — Unaudited | 5-6 | |||||
| Consolidated Statements of Stockholders’ Equity and Comprehensive Income – For the Nine Months Ended September 30, 2004 and 2003 — Unaudited | 7 | |||||
| Consolidated Statements of Cash Flows — For the Nine Months Ended September 30, 2004 and 2003 — Unaudited | 8-9 | |||||
| Notes to Consolidated Financial Statements — Unaudited | 10-28 | |||||
| Management’s Discussion and Analysis of Financial Condition and Results of Operations | 29-46 | |||||
| Quantitative and Qualitative Disclosures about Market Risk | 47-50 | |||||
| Controls and Procedures | 51 | |||||
| OTHER INFORMATION | ||||||
| Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities | 52 | |||||
| Exhibits | 52 | |||||
| Signatures | 53 | |||||
[THIS PAGE INTENTIONALLY LEFT BLANK]
Part I. FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
Item 1. Financial Statements
| September 30, | December 31, | September 30, | ||||||||||
| (In thousands, except share data) |
2004 |
2003 |
2003 |
|||||||||
ASSETS |
||||||||||||
Cash and due from depository institutions |
$ | 119,606 | $ | 119,882 | $ | 139,096 | ||||||
Short-term investments |
26,015 | — | 4,212 | |||||||||
Securities owned (at fair value) |
111,944 | 124,565 | 87,837 | |||||||||
Securities available for sale (at fair value) |
679,644 | 358,511 | 354,101 | |||||||||
Investment securities and tax certificates (approximate fair value: $159,944,
$192,706 and $159,762) |
159,944 | 192,706 | 155,550 | |||||||||
Federal Home Loan Bank stock, at cost which approximates fair value |
62,425 | 40,325 | 56,987 | |||||||||
Loans receivable, net of allowance for loan losses of $48,778, $45,595 and $48,202 |
4,176,571 | 3,686,153 | 3,739,638 | |||||||||
Accrued interest receivable |
30,126 | 27,866 | 29,109 | |||||||||
Real estate held for development and sale |
25,521 | 21,803 | 256,920 | |||||||||
Investments and advances to unconsolidated subsidiaries |
7,910 | 7,910 | 102,590 | |||||||||
Office properties and equipment, net |
115,809 | 93,577 | 93,334 | |||||||||
Deferred tax asset, net |
18,413 | 22,999 | 33,684 | |||||||||
Goodwill |
76,674 | 76,674 | 76,674 | |||||||||
Core deposit intangible asset |
10,695 | 11,985 | 12,424 | |||||||||
Due from clearing agent |
14,478 | — | — | |||||||||
Other assets |
42,837 | 46,593 | 54,904 | |||||||||
Total assets |
$ | 5,678,612 | $ | 4,831,549 | $ | 5,197,060 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Liabilities: |
||||||||||||
Deposits |
||||||||||||
Interest free checking |
$ | 781,916 | $ | 645,036 | $ | 594,685 | ||||||
NOW accounts |
590,051 | 533,888 | 480,837 | |||||||||
Savings accounts |
252,408 | 208,966 | 202,355 | |||||||||
Insured money fund savings |
893,315 | 865,590 | 878,281 | |||||||||
Certificate accounts |
724,601 | 804,662 | 826,045 | |||||||||
Total deposits |
3,242,291 | 3,058,142 | 2,982,203 | |||||||||
Advances from FHLB |
1,249,112 | 782,205 | 956,820 | |||||||||
Securities sold under agreements to repurchase |
200,550 | 138,809 | 143,230 | |||||||||
Federal funds purchased |
86,300 | — | — | |||||||||
Subordinated debentures, notes and bonds payable |
36,780 | 36,595 | 146,696 | |||||||||
Junior subordinated debentures |
263,266 | 263,266 | 263,218 | |||||||||
Securities sold but not yet purchased |
31,760 | 37,813 | 15,089 | |||||||||
Due to clearing agent |
— | 8,583 | 6,086 | |||||||||
Other liabilities |
109,064 | 92,684 | 170,049 | |||||||||
Total liabilities |
5,219,123 | 4,418,097 | 4,683,391 | |||||||||
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 54,997,960, 54,396,824 and 54,064,076 shares |
550 | 544 | 541 | |||||||||
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 |
258,980 | 259,770 | 256,782 | |||||||||
Unearned compensation - restricted stock grants |
(1,046 | ) | (1,178 | ) | (1,223 | ) | ||||||
Retained earnings |
195,765 | 148,311 | 258,197 | |||||||||
Total stockholders’ equity before accumulated other comprehensive
income (loss) |
454,298 | 407,496 | 514,346 | |||||||||
Accumulated other comprehensive income (loss) |
5,191 | 5,956 | (677 | ) | ||||||||
Total stockholders’ equity |
459,489 | 413,452 | 513,669 | |||||||||
Total liabilities and stockholders’ equity |
$ | 5,678,612 | $ | 4,831,549 | $ | 5,197,060 | ||||||
See Notes to Consolidated Financial Statements — Unaudited
4
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
| For the Three Months | For the Nine Months | |||||||||||||||
| (In thousands, except share and per share data) |
Ended September 30, |
Ended September 30, |
||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
Interest income: |
||||||||||||||||
Interest and fees on loans and leases |
$ | 52,661 | $ | 50,668 | $ | 149,631 | $ | 157,799 | ||||||||
Interest and dividends on securities available for sale |
4,974 | 4,598 | 13,178 | 20,941 | ||||||||||||
Interest on tax exempt securities |
1,329 | — | 1,972 | — | ||||||||||||
Interest and dividends on other investment securities |
4,560 | 4,653 | 12,817 | 14,867 | ||||||||||||
Broker dealer interest |
2,849 | 2,892 | 8,511 | 7,390 | ||||||||||||
Total interest income |
66,373 | 62,811 | 186,109 | 200,997 | ||||||||||||
Interest expense: |
||||||||||||||||
Interest on deposits |
7,060 | 7,758 | 20,821 | 28,685 | ||||||||||||
Interest on advances from FHLB |
9,364 | 15,025 | 26,231 | 45,632 | ||||||||||||
Interest on securities sold under agreements to
repurchase and federal funds purchased |
953 | 558 | 1,835 | 2,625 | ||||||||||||
Interest on subordinated debentures, notes and
bonds payable and junior subordinated debentures |
5,034 | 4,257 | 14,773 | 12,609 | ||||||||||||
Capitalized interest on real estate development |
(355 | ) | (286 | ) | (1,008 | ) | (881 | ) | ||||||||
Total interest expense |
22,056 | 27,312 | 62,652 | 88,670 | ||||||||||||
Net interest income |
44,317 | 35,499 | 123,457 | 112,327 | ||||||||||||
Provision for (recovery from) loan losses |
1,717 | (1,076 | ) | (1,105 | ) | 1,264 | ||||||||||
Net interest income after provision for
(recovery from) loan losses |
42,600 | 36,575 | 124,562 | 111,063 | ||||||||||||
Non-interest income: |
||||||||||||||||
Investment banking income |
51,792 | 49,992 | 176,162 | 152,222 | ||||||||||||
Service charges on deposits |
13,493 | 10,925 | 37,798 | 29,088 | ||||||||||||
Other service charges and fees |
5,819 | 4,625 | 16,887 | 14,614 | ||||||||||||
Income from real estate operations |
900 | 66 | 1,888 | 5,288 | ||||||||||||
Income from unconsolidated subsidiaries |
123 | 106 | 359 | 306 | ||||||||||||
Securities activities, net |
2 | (336 | ) | 77 | 29 | |||||||||||
Litigation settlement |
— | — | 22,840 | — | ||||||||||||
Other |
3,045 | 2,415 | 8,873 | 6,925 | ||||||||||||
Total non-interest income |
75,174 | 67,793 | 264,884 | 208,472 | ||||||||||||
Non-interest expense: |
||||||||||||||||
Employee compensation and benefits |
58,992 | 55,318 | 189,710 | 170,145 | ||||||||||||
Occupancy and equipment |
12,097 | 10,161 | 33,393 | 29,514 | ||||||||||||
Advertising and promotion |
4,757 | 2,988 | 15,081 | 9,614 | ||||||||||||
Amortization of intangible assets |
425 | 439 | 1,289 | 1,332 | ||||||||||||
Cost associated with debt redemption |
— | 2,040 | 11,741 | 3,688 | ||||||||||||
Professional fees |
4,356 | 4,238 | 9,703 | 11,068 | ||||||||||||
Communications |
2,867 | 2,822 | 9,226 | 10,867 | ||||||||||||
Floor broker and clearing fees |
2,143 | 2,328 | 7,383 | 6,722 | ||||||||||||
Other |
8,980 | 8,149 | 27,007 | 28,583 | ||||||||||||
Total non-interest expense |
94,617 | 88,483 | 304,533 | 271,533 | ||||||||||||
Income from continuing operations before income taxes |
23,157 | 15,885 | 84,913 | 48,002 | ||||||||||||
Provision for income taxes |
8,466 | 5,741 | 31,438 | 17,231 | ||||||||||||
Income from continuing operations |
14,691 | 10,144 | 53,475 | 30,771 | ||||||||||||
Discontinued operations, net of tax of $5.0 million
and $10.8 million |
— | 8,364 | — | 19,304 | ||||||||||||
Net income |
$ | 14,691 | $ | 18,508 | $ | 53,475 | $ | 50,075 | ||||||||
See Notes to Consolidated Financial Statements — Unaudited (Continued)
5
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES’
| For the Three Months | For the Nine Months | |||||||||||||||
| Ended September 30, |
Ended September 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
Earnings per share |
||||||||||||||||
Basic earnings per share from continuing operations |
$ | 0.25 | $ | 0.17 | $ | 0.90 | $ | 0.53 | ||||||||
Basic earnings per share from discontinued operations |
— | 0.15 | — | 0.33 | ||||||||||||
Basic earnings per share |
$ | 0.25 | $ | 0.32 | $ | 0.90 | $ | 0.86 | ||||||||
Diluted earnings per share from continuing operations |
$ | 0.23 | $ | 0.16 | $ | 0.84 | $ | 0.50 | ||||||||
Diluted earnings per share from discontinued operations |
— | 0.14 | — | 0.30 | ||||||||||||
Diluted earnings per share |
$ | 0.23 | $ | 0.30 | $ | 0.84 | $ | 0.80 | ||||||||
Basic weighted average number of common shares outstanding |
59,687,354 | 58,646,254 | 59,430,463 | 58,381,370 | ||||||||||||
Diluted weighted average number of common and common
equivalent shares outstanding |
63,109,757 | 61,343,946 | 63,026,141 | 62,475,859 | ||||||||||||
Cash dividends per Class A share |
$ | 0.035 | $ | 0.033 | $ | 0.101 | $ | 0.095 | ||||||||
Cash dividends per Class B share |
$ | 0.035 | $ | 0.033 | $ | 0.101 | $ | 0.095 | ||||||||
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 (loss) |
Total |
|||||||||||||||||||||
BALANCE, DECEMBER 31, 2002 |
$ | 583 | $ | 252,699 | $ | 213,692 | $ | (1,209 | ) | $ | 3,569 | $ | 469,334 | |||||||||||||||
Net income |
$ | 50,075 | — | — | 50,075 | — | — | 50,075 | ||||||||||||||||||||
Other comprehensive income, net of tax: |
||||||||||||||||||||||||||||
Unrealized loss on securities available for
sale (less income tax benefit of $4,596) |
(8,118 | ) | ||||||||||||||||||||||||||
Minimum pension liability (less income tax
benefit of $1,436) |
2,552 | |||||||||||||||||||||||||||
Unrealized loss associated with investment
in Bluegreen Corporation
(less income tax provision of $484) |
769 | |||||||||||||||||||||||||||
Gain associated with cash flow hedges
(less income tax benefit of $353) |
180 | |||||||||||||||||||||||||||
Reclassification adjustment for cash
flow hedges |
390 | |||||||||||||||||||||||||||
Reclassification adjustment for net gain
included in net income |
(19 | ) | ||||||||||||||||||||||||||
Other comprehensive loss |
(4,246 | ) | ||||||||||||||||||||||||||
Comprehensive income |
$ | 45,829 | ||||||||||||||||||||||||||
Dividends on Class A Common Stock |
— | — | (5,109 | ) | — | — | (5,109 | ) | ||||||||||||||||||||
Dividends on Class B Common Stock |
— | — | (461 | ) | — | — | (461 | ) | ||||||||||||||||||||
Issuance of Class A common stock
upon conversion of subordinated debentures |
— | 211 | — | — | — | 211 | ||||||||||||||||||||||
Issuance of Class A common stock |
7 | 2,602 | — | (134 | ) | — | 2,475 | |||||||||||||||||||||
Issuance of subsidiary common stock |
— | (20 | ) | — | — | — | (20 | ) | ||||||||||||||||||||
Tax effect relating to the exercise of
stock options |
— | 1,290 | — | — | — | 1,290 | ||||||||||||||||||||||
Amortization of unearned compensation -
restricted stock grants |
— | — | — | 120 | — | 120 | ||||||||||||||||||||||
Net change in accumulated other
comprehensive income, net of income taxes |
— | — | — | — | (4,246 | ) | (4,246 | ) | ||||||||||||||||||||
BALANCE, September 30, 2003 |
$ | 590 | $ | 256,782 | $ | 258,197 | $ | (1,223 | ) | $ | (677 | ) | $ | 513,669 | ||||||||||||||
BALANCE, DECEMBER 31, 2003 |
$ | 593 | $ | 259,770 | $ | 148,311 | $ | (1,178 | ) | $ | 5,956 | $ | 413,452 | |||||||||||||||
Net income |
$ | 53,475 | — | — | 53,475 | — | — | 53,475 | ||||||||||||||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||||||||||||||
Unrealized losses on securities available
for sale
(less income tax benefit of $442,000) |
(716 | ) | ||||||||||||||||||||||||||
Reclassification adjustment for net gain
included in net income |
(49 | ) | ||||||||||||||||||||||||||
Other comprehensive income (loss) |
(765 | ) | ||||||||||||||||||||||||||
Comprehensive income |
$ | 52,710 | ||||||||||||||||||||||||||