BBX CAPITAL CORP - FORM 8-K - EX-99.1 - INVESTOR PRESENTATION MATERIALS

Attached files

file	filename
8-K - FORM 8-K - BBX CAPITAL CORP	d8k.htm

JUNE 2011

NYSE

BBX

Prepared as of July 27, 2011

Exhibit 99.1

NYSE

BBX

•

Assets -

$3.9 Billion

•

Exchange

Listing

–

NYSE:BBX

•

Major

Subsidiary

BankAtlantic

–

Founded in 1952

–

“Florida’s Most Convenient Bank”

–

78 branches

–

Headquartered in Fort Lauderdale, FL

–

Operates in top 5 counties in Florida

–

Franchise value built on the strength of its low cost deposit base

•

On June 3, 2011, BankAtlantic Bancorp sold its Tampa region, including 19

branches, to PNC National Bank.

•

77.2 million total Class A common shares outstanding as of June 30, 2011

BANKATLANTIC BANCORP

OVERVIEW AS OF JUNE 30, 2011

NYSE

BBX

BankAtlantic

Compelling franchise value based on the strength of the

deposit base and recognized customer service excellence

Core operating earnings and fundamental operating trends of

the business have remained resilient throughout the

economic downturn

Capital ratios have been consistent and are in excess of all

applicable regulatory requirements

Credit trends are stable to improving in the loan portfolios

Economic trends in Florida are improving

Investment Highlights

NYSE

BBX

BankAtlantic has:

•

Subprime

lending

programs

•

No Negative amortization or option ARM loans

•

No High-rise condo exposure

•

No Collateralized debt obligations

•

No Asset-backed commercial paper

•

No Structured investment vehicles

•

No Fannie Mae or Freddie Mac equity or debt securities

•

No Trust preferred holdings

Investment Highlights

NYSE

BBX

Investment Highlight #1:

BankAtlantic’s compelling franchise value based on

the strength of the deposit base and recognized

customer service excellence

NYSE

BBX

BankAtlantic

Core Deposit Balances

(1)

12/31/2001

$ in Millions

12/31/2003

12/31/2005

12/31/2007

12/31/2009

06/30/2001

(1)

Core

deposits

include

DDA,

NOW

and

savings

deposit

accounts

held

individuals

and

business

customers.

June

30,

2011

balances include the effect of the June 2011 sale of BankAtlantic’s Tampa branches which reduced core deposits by

approximately $251 million.

$602

$1,026

$1,388

$1,819

$2,090

$2,240

$2,305

$2,154

$2,649

$2,847

$2,575

NYSE

BBX

BANKATLANTIC FOOTPRINT

78 Locations as

of June 30, 2011

NYSE

BBX

BankAtlantic

As of 6/30/11

13%

87%

Time Deposits

Non-Time Deposits

All Publicly Traded Florida Banks & Thrifts

34%

66%

Time Deposits

Non-Time Deposits

BankAtlantic

Deposit Mix

Source: SNL Financial. Data as of the most recent quarter available.

NYSE

BBX

BankAtlantic

Cost of Deposits

Publicly Traded Florida Banks &

Thrifts Median Cost of Deposits

(as of March 31, 2011)

1.08%

Source: SNL Financial. Data as of the most recent quarter available.

4Q2007

4Q2008

4Q2009

4Q2010

1Q2011

2Q2011

2.15%

1.58%

0.92%

0.46%

0.44%

0.41%

NYSE

BBX

BankAtlantic

Core

Deposits

Cost

Funds

(1)

(1) Core deposits is a non-GAAP measure that we use to refer to Demand, NOW, and Savings accounts. See

BankAtlantic Bancorp’s website for supplemental financials and a reconciliation to GAAP.

4Q2007

4Q2008

4Q2009

4Q2010

1Q2011

2Q2011

0.94%

0.49%

0.38%

0.25%

0.22%

NYSE

BBX

BankAtlantic

Total Cost of Funds

3.54%

2.30%

1.13%

0.62%

0.59%

0.57%

4Q2007

4Q2008

4Q2009

4Q2010

1Q2011

2Q2011

NYSE

BBX

BankAtlantic

FLORIDA BRANCH RANKING

(1) As of 3/31/11 Source: SNL Financial

(2) 78 branches as of June 30, 2011

Institution

Branches

1. Wells Fargo

703

2. Bank of America

659

3. SunTrust

555

4. Regions Bank

399

5. BB&T

274

6. JPMorgan Chase

273

7. PNC Financial

217

8. Toronto-Dominion Bank

172

9. Fifth Third Bancorp

167

10. BankUnited

11. BankAtlantic

12. Hancock

13. CenterState Banks

NYSE

BBX

In 2010, BankAtlantic was honored with the award

of the “Highest in Customer Satisfaction with

Retail Banking in Florida”

from J.D. Power and

Associates*

BankAtlantic

Customer Service

* BankAtlantic

received

the

highest

numerical

score

among

retail

banks

Florida

the

proprietary

J.D.

Power

and

Associates

2010

Retail

Banking Satisfaction Study based on 47,673 total responses measuring 9 providers in Florida and measures opinions of consumers with their

primary banking provider. Proprietary study results are based on experiences and perceptions of consumers surveyed in January 2010. Your

experiences may vary. Visit jdpower.com

NYSE

BBX

Investment Highlight #2:

Core operating earnings and fundamental

operating trends of the business have remained

resilient throughout the economic

downturn

NYSE

BBX

BankAtlantic

Total Assets

($ in thousands, period end)

12/31/2007

12/31/2008

12/31/2010

12/31/2009

6/30/2011

$6,161,962

$5,713,690

$4,755,122

$4,469,168

$3,831,471

NYSE

BBX

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

BankAtlantic Borrowings

(Leverage)

$1.5 Bil

$1.8 Bil

$1.3 Bil

$667 Mil

$172 Mil

$226 Mil

$23 Mil

NYSE

BBX

BankAtlantic

Total Liquidity *

(as a % of deposits)

6/30/2008

12/31/2008

12/31/2009

12/31/2010

* Total Liquidity = Cash, unencumbered securities & the unused portion of lines of credit

6/30/2011

18.73%

26.76%

23.92%

37.71%

34.69%

NYSE

BBX

BankAtlantic

Net Interest Margin

3.62%

3.45%

3.35%

3.55%

3.30%

2007

2008

2009

2010

6/30/11

NYSE

BBX

BankAtlantic

Number of Employees, period end

12/31/2006

/31

/2007

/31

/2008

12/31/2009

12/31/2010

/30

/2011

2,811

2,562

1,841

1,532

1,265

1,045

NYSE

BBX

$292,707

$263,786

$223,405

$209,999

$88,780

2007

2008

2009

2010

2011 YTD

BankAtlantic

Core Non-Interest Expense

Core Non-Interest Expense ¹

($ in thousands)

Core non-interest expense is a non-GAAP measure. See BankAtlantic Bancorp’s website for supplemental financials and a

reconciliation to GAAP.

1Q2011 =

$46,042

2Q2011 =

$42,738

NYSE

BBX

$50,685

$67,170

$69,211

$47,097

$23,232

2007

2008

2009

2010

2011 YTD

BankAtlantic

Core

Operating

Earnings

($ in thousands)

Core Operating Earnings is a non-GAAP measure. See BankAtlantic Bancorp’s website for supplemental financials and a

reconciliation to GAAP.

1Q2011 =

$11,575

2Q2011 =

$11,657

NYSE

BBX

$12,505

$27,170

$46,813

$39,900

$33,900

2007

2008

2009

2010

2011 YTD

BANKATLANTIC BANCORP (BBX)

CORE

OPERATING

EARNINGS

($ in thousands)

Core Operating Earnings is a non-GAAP measure. See BankAtlantic Bancorp’s website for supplemental financials

and a reconciliation to GAAP.

1Q2011 =

$7,210

2Q2011 =

$5,295

NYSE

BBX

BANKATLANTIC BANCORP (BBX)

GAAP INCOME/LOSSES

($ in thousands)

($202,600)

($185,800)

($144,181)

2006

2007

2008

2009

2010

2011 YTD

1Q2011 =

($23,182)

2Q2011 =

$23,111

$15,400

($22,200)

($71)

NYSE

BBX

BANKATLANTIC BANCORP

STOCK

PERFORMANCE

CLOSING

PRICE

NYSE:BBX

Stock

price

represents

adjusted

closing

price

the

last

day

trading

each

year,

and

reflects

the

impact

1:5

reverse

stock

split

September 2008.

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Dec-08

Dec-09

Dec-10

Mar-11

'Jun-11

$36.06

$18.01

$13.53

$12.52

$31.28

$32.58

$66.03

$94.59

$67.15

$66.97

$20.17

$5.76

$1.30

$1.15

$0.92

$0.95

NYSE

BBX

Investment Highlight #3:

Capital ratios have been consistent and are in

excess of all applicable regulatory

requirements

NYSE

BBX

BankAtlantic

Regulatory Capital Requirements

Historical Regulatory

Requirement

BankAtlantic

6/30/2011 Ratios

BankAtlantic New Regulatory

Requirements

(1)

Tier 1 (Core)

5.00%

8.24%

8.00%

Total Risk-Based

10.00%

14.52%

14.00%

(1) On February 23, 2011, BankAtlantic Bancorp and BankAtlantic entered into a Stipulation

and Consent to the issuance of an Order to Cease and Desist (the “Order”) with the Office of Thrift Supervision.

The Order requires corrective measures in a number of areas, including a requirement that, by June 30, 2011,

BankAtlantic is to have and maintain a Tier 1 (Core) Capital Ratio equal to or greater than 8% and a

Total Risk-Based Capital Ratio equal to or greater than 14%. For further information,

including a copy of the Orders, see the Form 8-K filed by BankAtlantic Bancorp with the SEC on February 25, 2011.

NYSE

BBX

BankAtlantic

Tier 1 (Core) Capital

Prior

requirement

(5%)

Current

requirement

(8%)

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

7.51%

7.49%

7.20%

6.94%

6.87%

6.82%

6.89%

6.80%

6.97%

7.01%

8.31%

7.58%

7.51%

7.36%

7.17%

6.22%

5.97%

8.24%

NYSE

BBX

12.11%

12.34%

11.93%

11.63%

11.83%

11.77%11.75%

11.63%

11.86%

11.81%

13.51%

12.56%

12.86%12.86%

12.59%

11.72%

11.76%

14.52%

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

Sep-

Dec-

Mar-

Jun-

BankAtlantic

Total Risk-Based Capital

Current

requirement

(14%)

Prior

requirement

(10%)

NYSE

BBX

Investment Highlight #4:

BankAtlantic’s credit trends are stable to

improving in the loan portfolios

NYSE

BBX

These balances and the following BankAtlantic Credit Trend slides exclude information on the loans that were transferred to

BankAtlantic Bancorp Partners, Inc. effective 3/31/08, which total approximately $12.0 million as of 6/30/11.

BankAtlantic

Credit Composition

Average Balances

Loans

6/30/2011

% of Total

Residential real estate

$ 1.1 Bil

37%

Commercial real estate

822 Mil

28%

Consumer

605 Mil

21%

Commercial business

124 Mil

Small business

298 Mil

10%

Total Loans

$ 2.9 Bil

100%

Allowance for Loan Losses (Ending Balance)

138 Mil

as a % of total loans, gross

4.92%

NYSE

BBX

($ in Thousands)

BankAtlantic

Credit Quality

Loan Provision

1Q2011 =

$27,832

2Q2011 =

$10,195

$8,574

$135,383

$70,842

$214,244

$138,824

$38,027

2006

2007

2008

2009

2010

2011 YTD

NYSE

BBX

BankAtlantic

New

Non-Performing

Loans

(Total

Bank)

Quarter

($ in Thousands)

Of these amounts, the following were designated as non-performing, but continued to pay as agreed: 2Q2010 -

$49,770, 3Q2010 -

$59,040, 4Q2010 -

$48,173, 1Q2011 -

$11,820, 2Q2011 -

$6,869.

$88,785

$51,831

$40,462

$59,522

$60,118

$100,669

$87,984

$79,487

$44,655

$33,133

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

NYSE

BBX

$56,122

$20,938

$7,812

$25,328

$31,809

$73,267

$65,155

$58,885

$17,248

$12,202

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

BankAtlantic

New

Non-Performing

Loans

(Commercial

Real

Estate)

Quarter

($ in Thousands)

Of these amounts, the following were designated as non-performing, but continued to pay as agreed: 2Q2010 -

$49,770, 3Q2010 -

$59,040, 4Q2010 -

$48,173, 1Q2011 -

$11,820, 2Q2011 -

$6,869

NYSE

BBX

BankAtlantic

Non-Performing Loans and

Non-Performing Assets

($ in Thousands)

12/31/06

12/31/07

12/31/08

12/31/09

12/31/10

6/30/11

$4,436

$26,814

$324,226

$438,923

$389,789

$315,973

$178,591

$208,088

$286,120

$370,959

$228,574

$197,901

NYSE

BBX

BankAtlantic

Total Delinquency Trends

(excluding non-performing loans)

12/31/2005

12/31/2006

12/31/2007

12/31/2008

12/31/2009

12/31/2010

6/30/2011

0.18%

0.32%

0.43%

2.54%

2.17%

1.20%

0.99%

NYSE

BBX

BankAtlantic

Commercial Real Estate Delinquency Trends

(excluding non-performing loans)

12/31/2005

12/31/2006

12/31/2007

12/31/2008

12/31/2009

12/31/2010

6/30/2011

6.11%

3.07%

0.00%

0.41%

0.00%

NYSE

BBX

BankAtlantic

Commercial Real Estate Residential Land Portfolio

Outstanding Balance ($ in thousands)

Net of specific reserves

3Q 2007

2Q 2011

82 Loans -

$550,702

26 Loans -

$76,830

NYSE

BBX

Investment Highlight #5:

Economic trends in Florida are improving

NYSE

BBX

Improving South Florida

Housing Market

“We have seen year-over-year increase for pending sales for nearly one year. Pending

sales have also increased month-over-month 10 out of the last 13 months.”

Jack H. Levine, chairman of the Miami Association of Realtors, South Florida Business Journal,

February 28, 2011

“All market trends indicate continued growth for Miami-Dade County’s real estate market.

This is very positive for the local real estate market. Increased pending sales reflect

the existence of pent-up demand and should result in strengthening home values as

distressed housing inventory continues to be absorbed.”

Jack H. Levine, chairman of the Miami Association of Realtors, South Florida Business Journal, March

29, 2011

Miami-Dade County

•

March 2011 pending home sales up 18% year-over-year

Broward County

•

March 2011 pending home sales up 6% year-over-year

Source: South Florida Business Journal, March 29, 2011

NYSE

BBX

FLORIDA MARKET

“Florida is #3 in

national deposits at

$369 billion”

•

Florida is projected to have 4.25% population growth over

the next 5 years (2010 to 2015)

•

Florida is #4 in national deposits at $410 billion

Source: FDIC, June 30, 2010

NYSE

BBX

Source:

SunSentinel;

Impact

the

2010

Census

–

Population

and

Economic

Trends,

May

20,

2011

(Rick

Gilbert)

Data from 2010 Census

FLORIDA MARKET

Rank

2010 Population

% Change

from 2000

Rank

2010 Population

% Change

from 2000

United States

308,745,538

9.7%

United States

308,745,538

9.7%

California

37,253,956

10.0%

Nevada

2,700,551

35.1%

Texas

25,145,561

20.6%

Arizona

6,392,017

24.6%

New York

19,378,102

2.1%

Utah

2,763,885

23.8%

Florida

18,801,310

17.6%

Idaho

1,567,582

21.1%

Illinois

12,830,632

3.3%

Texas

25,145,561

20.6%

Pennsylvania

12,702,379

3.4%

North Carolina

9,535,483

18.5%

Ohio

11,536,504

1.6%

Georgia

9,687,653

18.3%

Michigan

9,883,640

-0.6%

Florida

18,801,310

17.6%

Georgia

9,687,653

18.3%

Colorado

5,029,196

16.9%

North Carolina

9,535,483

18.5%

South Carolina

4,625,364

15.3%

2010 U.S. Census

States Ranked by 2010 Population

2010 U.S. Census

States Ranked by 10-Year Growth Rate

NYSE

BBX

Source:

SunSentinel;

Impact

the

2010

Census

–

Population

and

Economic

Trends,

May

20,

2011

(Rick

Gilbert)

Data from 2010 Census

Rank

MSA

Population

Rank

MSA

Population

Rank

MSA

Population

New York

16,846,046

New York

18,323,002

New York

18,897,109

Los Angeles

11,273,720

Los Angeles

12,365,627

Los Angeles

12,828,837

Chicago

8,182,076

Chicago

9,098,316

Chicago

9,461,105

Philadelphia

5,435,468

Philadelphia

5,687,147

Dallas-Forth Worth

6,371,773

Detroit

4,248,699

Dallas-Forth Worth

5,161,544

Philadelphia

5,965,343

Boston

4,133,895

Miami-Fort Lauderdale

5,007,564

Houston

5,946,800

Washington DC

4,122,914

Washington DC

4,796,183

Washington DC

5,582,170

Miami-Fort Lauderdale

4,056,100

Houston

4,715,407

Miami-Fort Lauderdale

5,564,635

Dallas-Forth Worth

3,989,294

Detroit

4,452,557

Atlanta

5,268,860

Houston

3,767,335

Boston

4,391,344

Boston

4,552,402

2010 Census

2010 U.S. Census

Metro Area Rankings

1990 Census

2000 Census

FLORIDA MARKET

NYSE

BBX

BankAtlantic

Compelling franchise value based on the strength of the

deposit base and recognized customer service excellence

Core operating earnings and fundamental operating trends of

the business have remained resilient throughout the

economic downturn

Capital ratios have been consistent and are in excess of all

applicable regulatory requirements

Credit trends are stable to improving in the loan portfolios

Economic trends in Florida are improving

Value Proposition

NYSE

BBX

Forward-Looking Statements

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. 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, including the impact of the changing regulatory environment, a continued or deepening recession,

continued decreases in real estate values, and increased unemployment or sustained high unemployment rates on our business

generally, BankAtlantic’s regulatory capital ratios, the ability of our borrowers to service their obligations and of our customers to

maintain account balances and the value of collateral securing our loans; credit risks and loan losses, and the related sufficiency

of the allowance for loan losses, including the impact on the credit quality of our loans (including those held in the asset workout

subsidiary of the Company) of the economy; the risk that loan losses have not peaked and risks of additional charge-offs,

impairments and required increases in our allowance for loan losses; the impact of regulatory proceedings and litigation including

but not limited to proceedings and litigation relating to overdraft fees and tax certificates; risks associated with maintaining

compliance with the Cease and Desist Orders entered into by the Company and BankAtlantic with the Office of Thrift Supervision,

including risks that BankAtlantic will not maintain required capital levels, that compliance will adversely impact operations, and

that failing to comply with regulatory mandates will result in the imposition of additional regulatory requirements and/or fines;

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 financial and credit

markets and the impact of such conditions on our activities and our ability to raise capital; we may raise additional capital and

such capital may be highly dilutive to BankAtlantic Bancorp’s shareholders or may not be available; and the risks associated with

the impact of periodic valuation testing of goodwill, deferred tax assets and other assets. Past performance and perceived trends

may not be indicative of future results. 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, including the Company’s

Annual Report on Form 10-K for the year ended December 31, 2010, and the Quarterly Report on Form 10-Q for the quarter

ended March 31, 2011. The Company cautions that the foregoing factors are not exclusive.

NYSE

BBX

This presentation contains financial information determined by methods other than in accordance with accounting

principles generally accepted in the United States of America (“GAAP”). Management uses non-GAAP financial

measures to supplement its GAAP financial information and to provide additional useful measures in the

evaluation of BankAtlantic's operating results and any related trends that may be affecting BankAtlantic's

business. Management uses pre-tax core operating earnings to measure BankAtlantic's financial performance

excluding items that are not currently controllable by management. Management uses core expenses to measure

expense reduction trends excluding items that are not currently controllable by management. The core operating

efficiency ratio is used by management to measure the costs expended to generate a dollar of revenues excluding

items that are not currently controllable by management. The return on average tangible equity and average

tangible assets is used by management to measure BankAtlantic's effectiveness in its use of capital and assets,

respectively, and to allow for comparison to other companies in the industry. The tangible equity to tangible asset

ratio is used by management to evaluate capital adequacy trends and to allow for comparison to other companies

in the industry. Management uses the core deposit measure to assess trends relating to its lower cost deposit

categories, which management believes may generally be more indicative of relationship deposits. These

disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor

are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

See reconciliations of GAAP to non-GAAP measures in the financial information presented on BankAtlantic

Bancorp’s website under Investor Relations.

Non-GAAP Information

NYSE

BBX

Attached files

Stock widget

Investing forum

BBX CAPITAL CORP Reports