SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
For the quarterly period ended March 31, 2005
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.
| Outstanding at | ||||
| Title of Each Class | May 3, 2005 | |||
Class A Common Stock, par value $0.01 per share |
55,695,489 | |||
Class B Common Stock, par value $0.01 per share |
4,876,124 | |||
TABLE OF CONTENTS
| Page | ||||||||
Part I. FINANCIAL INFORMATION |
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Reference |
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Item 1. Financial Statements |
1-18 | |||||||
| 4 | ||||||||
| 5-6 | ||||||||
| 7 | ||||||||
| 8-9 | ||||||||
| 10-18 | ||||||||
| 19-33 | ||||||||
| 33-36 | ||||||||
| 37 | ||||||||
| 38 | ||||||||
| 38 | ||||||||
| 39 | ||||||||
| Section 302 Chief Executive Officer Certification | ||||||||
| Section 302 Chief Financial Officer Certification | ||||||||
| Section 906 Chief Executive Officer Certification | ||||||||
| Section 906 Chief Financial Officer Certification | ||||||||
[THIS PAGE INTENTIONALLY LEFT BLANK]
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
| March 31, | December 31, | March 31, | ||||||||||
| (In thousands, except share data) | 2005 | 2004 | 2004 | |||||||||
ASSETS |
||||||||||||
Cash and due from depository institutions |
$ | 119,915 | $ | 118,967 | $ | 114,849 | ||||||
Federal funds sold and other short-term investments |
16,832 | 16,093 | 1,953 | |||||||||
Securities owned (at fair value) |
142,294 | 125,443 | 122,114 | |||||||||
Securities available for sale (at fair value) |
762,573 | 747,160 | 358,665 | |||||||||
Investment
securities and tax certificates (approximate fair value: $298,950, $306,963 and $139,075) |
302,498 | 307,438 | 139,075 | |||||||||
Federal Home Loan Bank stock, at cost which approximates
fair value |
80,600 | 78,619 | 30,340 | |||||||||
Loans receivable, net of allowance for loan losses of
$43,042, $46,010 and $45,383 |
4,637,232 | 4,599,048 | 3,674,173 | |||||||||
Accrued interest receivable |
38,864 | 35,982 | 26,781 | |||||||||
Real estate held for development and sale |
24,799 | 27,692 | 24,239 | |||||||||
Investments in unconsolidated subsidiaries |
7,910 | 7,910 | 7,910 | |||||||||
Office properties and equipment, net |
132,438 | 129,790 | 96,628 | |||||||||
Deferred tax asset, net |
22,971 | 20,269 | 17,751 | |||||||||
Goodwill |
76,674 | 76,674 | 76,674 | |||||||||
Core deposit intangible asset |
9,597 | 10,270 | 11,546 | |||||||||
Due from clearing agent |
1,120 | 16,619 | — | |||||||||
Other assets |
42,034 | 38,803 | 47,785 | |||||||||
Total assets |
$ | 6,418,351 | $ | 6,356,777 | $ | 4,750,483 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Liabilities: |
||||||||||||
Deposits |
||||||||||||
Demand |
$ | 960,063 | $ | 890,398 | $ | 748,402 | ||||||
NOW |
676,945 | 658,137 | 567,498 | |||||||||
Savings |
296,485 | 270,001 | 233,832 | |||||||||
Money market |
913,434 | 875,422 | 870,447 | |||||||||
Certificates of deposits |
796,928 | 763,244 | 723,256 | |||||||||
Total deposits |
3,643,855 | 3,457,202 | 3,143,435 | |||||||||
Advances from FHLB |
1,524,881 | 1,544,497 | 591,466 | |||||||||
Securities sold under agreements to repurchase |
217,463 | 296,643 | 118,465 | |||||||||
Federal funds purchased |
75,000 | 105,000 | 25,000 | |||||||||
Subordinated debentures, notes and bonds payable |
35,878 | 37,741 | 37,109 | |||||||||
Junior subordinated debentures |
263,266 | 263,266 | 263,266 | |||||||||
Securities sold but not yet purchased |
60,276 | 39,462 | 34,250 | |||||||||
Due to clearing agent |
— | — | 18,328 | |||||||||
Other liabilities |
116,751 | 143,701 | 89,587 | |||||||||
Total liabilities |
5,937,370 | 5,887,512 | 4,320,906 | |||||||||
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 55,665,968,
55,214,225 and 54,331,830 shares |
556 | 552 | 543 | |||||||||
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 |
260,207 | 259,702 | 255,915 | |||||||||
Unearned compensation — restricted stock grants |
(957 | ) | (1,001 | ) | (1,134 | ) | ||||||
Retained earnings |
228,714 | 210,955 | 166,882 | |||||||||
Total stockholders’ equity before accumulated
other comprehensive income (loss) |
488,569 | 470,257 | 422,255 | |||||||||
Accumulated other comprehensive income (loss) |
(7,588 | ) | (992 | ) | 7,322 | |||||||
Total stockholders’ equity |
480,981 | 469,265 | 429,577 | |||||||||
Total liabilities and stockholders’ equity |
$ | 6,418,351 | $ | 6,356,777 | $ | 4,750,483 | ||||||
See Notes to Consolidated Financial Statements — Unaudited
4
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
| For the Three Months | ||||||||
| Ended March 31, | ||||||||
| (In thousands, except share and per share data) | 2005 | 2004 | ||||||
Interest income: |
||||||||
Interest and fees on loans |
$ | 66,355 | $ | 48,936 | ||||
Interest and dividends on securities available for sale |
5,295 | 3,620 | ||||||
Interest on tax exempt securities |
3,225 | 33 | ||||||
Interest on other investment securities |
4,364 | 4,244 | ||||||
Broker dealer interest |
2,947 | 2,796 | ||||||
Total interest income |
82,186 | 59,629 | ||||||
Interest expense: |
||||||||
Interest on deposits |
8,295 | 6,973 | ||||||
Interest on advances from FHLB |
13,674 | 9,098 | ||||||
Interest on securities sold under agreements to
repurchase and federal funds purchased |
2,099 | 250 | ||||||
Interest on subordinated debentures, notes and
bonds payable, and junior subordinated debentures |
5,672 | 4,827 | ||||||
Capitalized interest on real estate development |
(452 | ) | (307 | ) | ||||
Total interest expense |
29,288 | 20,841 | ||||||
Net interest income |
52,898 | 38,788 | ||||||
Recovery from loan losses |
(3,916 | ) | (859 | ) | ||||
Net interest income after recovery from
loan losses |
56,814 | 39,647 | ||||||
Non-interest income: |
||||||||
Broker/dealer revenue |
54,686 | 63,065 | ||||||
Service charges on deposits |
12,989 | 11,277 | ||||||
Other service charges and fees |
5,238 | 4,637 | ||||||
Income from real estate operations |
2,241 | 305 | ||||||
Income from unconsolidated subsidiaries |
131 | 118 | ||||||
Securities activities, net |
102 | 72 | ||||||
Litigation settlement |
— | 22,840 | ||||||
Other |
3,283 | 2,051 | ||||||
Total non-interest income |
78,670 | 104,365 | ||||||
Non-interest expense: |
||||||||
Employee compensation and benefits |
65,795 | 67,180 | ||||||
Occupancy and equipment |
13,237 | 10,375 | ||||||
Advertising and promotion |
6,298 | 4,694 | ||||||
Cost associated with debt redemption |
— | 11,741 | ||||||
Professional fees |
4,081 | 3,229 | ||||||
Communications |
3,205 | 3,128 | ||||||
Floor broker and clearing fees |
2,368 | 2,802 | ||||||
Other |
9,801 | 8,865 | ||||||
Total non-interest expense |
104,785 | 112,014 | ||||||
Income before income taxes |
30,699 | 31,998 | ||||||
Provision for income taxes |
10,821 | 11,474 | ||||||
Net income |
$ | 19,878 | $ | 20,524 | ||||
See Notes to Consolidated Financial Statements — Unaudited (Continued)
5
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
| For the Three Months | ||||||||
| Ended March 31, | ||||||||
| 2005 | 2004 | |||||||
Earnings per share |
||||||||
Basic earnings per share |
$ | 0.33 | $ | 0.35 | ||||
Diluted earnings per share |
$ | 0.31 | $ | 0.32 | ||||
Basic weighted average number
of common shares outstanding |
60,071,605 | 59,257,270 | ||||||
Diluted weighted average number
of common and common
equivalent shares outstanding |
63,206,870 | 63,193,034 | ||||||
Cash dividends per share |
||||||||
Cash dividends per Class A share |
$ | 0.035 | $ | 0.033 | ||||
Cash dividends per Class B share |
$ | 0.035 | $ | 0.033 | ||||
See Notes to Consolidated Financial Statements — Unaudited
6
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
| Accumul- | ||||||||||||||||||||||||||||
| Unearned | ated | |||||||||||||||||||||||||||
| Compen- | Other | |||||||||||||||||||||||||||
| Compre- | Addi- | sation | Compre- | |||||||||||||||||||||||||
| hensive | tional | Restricted | hensive | |||||||||||||||||||||||||
| Income | Common | Paid-in | Retained | Stock | Income | |||||||||||||||||||||||
| (In thousands) | (Loss) | Stock | Capital | Earnings | Grants | (Loss) | Total | |||||||||||||||||||||
BALANCE, DECEMBER 31, 2003 |
$ | 593 | $ | 259,770 | $ | 148,311 | $ | (1,178 | ) | $ | 5,956 | $ | 413,452 | |||||||||||||||
Net income |
$ | 20,524 | — | — | 20,524 | — | — | 20,524 | ||||||||||||||||||||
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 (less income tax
expense of $37) |
(46 | ) | ||||||||||||||||||||||||||
Other comprehensive income |
1,366 | |||||||||||||||||||||||||||
Comprehensive income |
$ | 21,890 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
Retirement of Class A Common Stock |
(4 | ) | (6,054 | ) | — | — | — | (6,058 | ) | |||||||||||||||||||
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 | $ | 255,915 | $ | 166,882 | $ | (1,134 | ) | $ | 7,322 | $ | 429,577 | |||||||||||||||
BALANCE, DECEMBER 31, 2004 |
$ | 601 | $ | 259,702 | $ | 210,955 | $ | (1,001 | ) | $ | (992 | ) | $ | 469,265 | ||||||||||||||
Net income |
$ | 19,878 | — | — | 19,878 | — | — | 19,878 | ||||||||||||||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||||||||||||||
Unrealized losses on securities available for sale
(less income tax benefit of $3,686) |
(6,531 | ) | ||||||||||||||||||||||||||
Reclassification adjustment for net gain
included in net income (less income tax
expense of $37) |
(65 | ) | ||||||||||||||||||||||||||
Other comprehensive income (loss) |
(6,596 | ) | ||||||||||||||||||||||||||
Comprehensive income |
$ | 13,282 | ||||||||||||||||||||||||||
Dividends on Class A Common Stock |
— | — | (1,948 | ) | — | — | (1,948 | ) | ||||||||||||||||||||
Dividends on Class B Common Stock |
— | — | (171 | ) | — | — | (171 | ) | ||||||||||||||||||||
Issuance of Class A common stock upon exercise
of stock options |
7 | 1,544 | 1,551 | |||||||||||||||||||||||||
Tax effect relating to the exercise of
stock options |
— | 3,953 | — | — | — | 3,953 | ||||||||||||||||||||||
Retirement of Class A Common Stock relating to
exercise of stock options |
(3 | ) | (4,645 | ) | — | — | — | (4,648 | ) | |||||||||||||||||||
Amortization of unearned compensation -
restricted stock grants |
— | — | — | 44 | — | 44 | ||||||||||||||||||||||
Retirement of Ryan Beck common stock |
— | (347 | ) | — | — | — | (347 | ) | ||||||||||||||||||||
Net change in accumulated other comprehensive
income, net of income taxes |
— | — | — | — | (6,596 | ) | (6,596 | ) | ||||||||||||||||||||
BALANCE, MARCH 31, 2005 |
$ | 605 | $ | 260,207 | $ | 228,714 | $ | (957 | ) | $ | (7,588 | ) | $ | 480,981 | ||||||||||||||
See Notes to Consolidated Financial Statements — Unaudited
7
BankAtlantic Bancorp, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
| For the Three Months | ||||||||
| Ended March 31, | ||||||||
| (In thousands) | 2005 | 2004 | ||||||
Operating activities: |
||||||||
Net income |
$ | 19,878 | $ | 20,524 | ||||
Adjustments to reconcile net income to net cash (used) provided
in operating activities: |
||||||||
Recovery from credit losses, net * |
(4,016 | ) | (555 | ) | ||||
Depreciation, amortization and accretion, net |
4,421 | 3,602 | ||||||
Amortization of intangible assets |
425 | 439 | ||||||
Securities activities, net |
(102 | ) | (72 | ) | ||||
(Gains) losses on sale of real estate owned |
(137 | ) | 60 | |||||
Gains on sales of loans |
(110 | ) | (129 | ) | ||||
Gain on sale of branch |
(935 | ) | — | |||||
Equity in earnings of unconsolidated subsidiaries |
(131 | ) | (118 | ) | ||||
Litigation settlement |
— | (22,840 | ) | |||||
Cost associated with debt redemption |
— | 11,741 | ||||||
Issuance of forgivable notes receivable |
(1,806 | ) | (4,816 | ) | ||||
Originations and repayments of loans held for sale, net |
(28,185 | ) | (7,518 | ) | ||||
Proceeds from sales of loans held for sale |
29,412 | 11,333 | ||||||
Decrease (increase) in real estate inventory |
2,893 | (2,436 | ) | |||||
(Increase) decrease in securities owned activities, net |
(16,851 | ) | 2,451 | |||||
Increase (decrease) in securities sold but not yet purchased |
20,814 | (3,563 | ) | |||||
Decrease in deferred tax asset, net |
983 | 4,491 | ||||||
(Increase) decrease in accrued interest receivable |
(2,882 | ) | 1,085 | |||||
(Increase) decrease in other assets |
(9,108 | ) | 1,298 | |||||
Decrease in due from clearing agent |
15,499 | 9,745 | ||||||
Decrease in other liabilities |
(38,699 | ) | (1,575 | ) | ||||
Net cash (used) provided in operating activities |
(8,637 | ) | 23,147 | |||||
Investing activities: |
||||||||
Proceeds from redemption and maturities of investment
securities and tax certificates |
55,989 | 60,353 | ||||||
Purchase of investment securities and tax certificates |
(35,446 | ) | (7,022 | ) | ||||
Purchases of securities available for sale |
(97,669 | ) | (32,313 | ) | ||||
Proceeds from sales and maturities of securities available for sale |
72,404 | 50,942 | ||||||
(Purchases) redemptions of FHLB stock, net |
(1,981 | ) | 9,985 | |||||
Repayments from unconsolidated subsidiaries |
131 | 118 | ||||||
Net (purchases and originations) repayments of loans |
( | |||||||