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SECURITIES AND EXCHANGE COMMISSION
þ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
001-09071
Florida | 59-2022148 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S Employer Identification No.) |
2100 West Cypress Creek Road Fort Lauderdale, Florida | 33309 | |
(Address of principal executive office) | (Zip Code) |
(Registrant’s telephone number, including area code)
None.
(Title of Class)
Large accelerated filero | Accelerated filero | Non-accelerated filero | Smaller reporting companyþ | |||
(Do not check if a smaller reporting company) |
Class B Common Stock, $.01 par value: 6,859,751 shares outstanding
Annual Report on Form 10-K for the Year Ended December 31, 2010
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• | risks associated with the Company’s current business strategy, including the risk that BFC will not be in a position to provide strategic support to its affiliated entities or that such support will not achieve the anticipated benefits; | ||
• | BFC has negative cash flow and limited sources of cash which may present certain risks to its ongoing operations; | ||
• | the impact of economic, competitive and other factors affecting the Company and its subsidiaries, and their operations, markets, products and services; | ||
• | the risk that creditors of the Company’s subsidiaries or other third parties may seek to recover distributions or dividends made by such subsidiaries or other amounts owed by such subsidiaries from their respective parent companies, including BFC; | ||
• | BFC’s shareholders’ interests may be diluted if additional shares of BFC’s common stock are issued, and BFC’s public company investments may be diluted if BankAtlantic Bancorp, Bluegreen or Benihana issue additional shares of its stock; | ||
• | adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on the activities of the Company and its subsidiaries; | ||
• | the impact of the current economic downturn on the price and liquidity of BFC’s common stock and on BFC’s ability to obtain additional capital, including the risk that if BFC needs or otherwise believes it is advisable to issue debt or equity securities to fund its operations, it may not be possible to issue any such securities on favorable terms, if at all; | ||
• | strategic alternatives being evaluated by entities in which the Company has investments may not ultimately be pursued or consummated on terms expected or at all; | ||
• | the performance of entities in which the Company has made investments may not be profitable or their results as anticipated; | ||
• | BFC is dependent upon dividends from its subsidiaries to fund its operations, and currently BankAtlantic Bancorp is prohibited from paying dividends and may not pay dividends in the future, whether as a result of such restrictions continuing in the future or otherwise, and Bluegreen has historically not paid dividends on its common stock, and even if paid, BFC has historically experienced and may continue to experience negative cash flow; | ||
• | the uncertainty regarding the amount of cash that will be required to be paid to Woodbridge shareholders who exercised appraisal rights in connection with Woodbridge’s merger with BFC; | ||
• | the risk that negotiations and agreements relating to the resolution of Woodbridge’s indebtedness and releases under any or all of the debt may not be obtained; |
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• | risks associated with the securities we hold directly or indirectly, including the risk that we may record further impairment charges with respect to such securities in the event trading prices decline in the future; | ||
• | the preparation of financial statements in accordance with GAAP involves making estimates, judgments and assumptions, and any changes in estimates, judgments and assumptions used could have a material adverse impact on our financial condition and operating results; | ||
• | the risk that the amount of any tax refund that we may receive in the future may be less than expected, or received later than expected; | ||
• | uncertainties regarding enacted or currently proposed legislation regarding regulation of companies within the financial services industry, including bank holding companies, and the potential impact of such legislation on our operations and the operations of BankAtlantic Bancorp, as well as the risk that BFC will be required by the OTS to enter into a Cease and Desist Order with respect to its ownership of BankAtlantic Bancorp; | ||
• | the risks related to litigation and other legal proceedings against BFC and its subsidiaries, including the costs and expenses of such proceedings, including legal and other professional fees, as well as the impact of any finding of liability or damages on our financial condition and operating results; and | ||
• | the Company’s success at managing the risks involved in the foregoing. |
• | the impact of economic, competitive and other factors affecting BankAtlantic Bancorp 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 its business generally, BankAtlantic’s regulatory capital ratios, the ability of its borrowers to service their obligations and its customers to maintain account balances and the value of collateral securing its loans; | ||
• | credit risks and loan losses, and the related sufficiency of the allowance for loan losses, including the impact on the credit quality of BankAtlantic Bancorp’s loans (including those held in the asset workout subsidiary of BankAtlantic Bancorp) of a sustained downturn in the economy and in the real estate market and other changes in the real estate markets in BankAtlantic Bancorp’s trade area and where its collateral is located; | ||
• | the risks of additional charge-offs, impairments and required increases in BankAtlantic Bancorp’s allowance for loan losses associated with the economy; | ||
• | the impact of regulatory proceedings and litigation regarding overdraft fees; | ||
• | the risks associated with maintaining compliance with the Cease and Desist Orders entered into by BankAtlantic Bancorp and BankAtlantic, including risks that compliance will adversely impact operations, risks associated with failing to comply with regulatory mandates and the risk of imposition of additional regulatory requirements and/or fines; | ||
• | the uncertain impact of legal proceedings on BankAtlantic Bancorp’s financial condition or operations including the risk that the securities class action litigation verdict may not be overturned on appeal; | ||
• | the risk that changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on BankAtlantic’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 BankAtlantic Bancorp’s activities and ability to raise capital; | ||
• | the sale of BankAtlantic’s Tampa branches may not be completed as announced or at all and may not have the positive financial impact currently anticipated; | ||
• | BankAtlantic Bancorp’s expense reduction initiatives may not be successful and additional cost savings may not be achieved; | ||
• | BankAtlantic Bancorp may raise additional capital and such capital may be highly dilutive to BankAtlantic Bancorp’s shareholders, including BFC, or may not be available, and depending on the number of shares issued, BankAtlantic Bancorp’s ability to use its net operating loss carryforwards against taxable income may be limited; | ||
• | the risks associated with the impact of periodic valuation testing of goodwill, deferred tax assets and other assets; and | ||
• | BankAtlantic Bancorp’s success at managing the risks involved in the foregoing. |
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• | the overall state of the economy, interest rates and the availability of financing may affect Bluegreen’s ability to market vacation ownership interests (“VOIs”) and residential homesites; | ||
• | Bluegreen would incur substantial losses and its liquidity position could be adversely impacted if the customers it finances default on their obligations; | ||
• | while Bluegreen has attempted to restructure its business to reduce its need for and reliance on financing for liquidity in the short term, there is no assurance that such restructuring will be successful or that its business and profitability will not otherwise continue to depend on its ability to obtain financing, which may not be available on favorable terms, or at all; | ||
• | Bluegreen’s results of operations and financial condition in the past have been and may in the future continue to be adversely impacted if its estimates concerning its notes receivable are incorrect; | ||
• | Bluegreen’s future success depends on its ability to market its products successfully and efficiently; | ||
• | Bluegreen is subject to the risks of the real estate market and the risks associated with real estate development, including the continued decline in real estate values and the deterioration of real estate sales; | ||
• | Bluegreen may not be successful in increasing or expanding its fee-based services relationships and its fee-based service activities may not be profitable, which may have an adverse impact on its results of operations and financial condition; | ||
• | Bluegreen’s exploration of strategic alternatives for its Bluegreen Communities involves a number of risks; | ||
• | claims for development-related defects could adversely affect Bluegreen’s financial condition and operating results; | ||
• | the resale market for VOIs could adversely affect Bluegreen’s business; | ||
• | Bluegreen’s initiatives to increase the amount of cash received upon sales of VOI’s and to achieve selling and marketing efficiencies in its Bluegreen Resorts segment may not be successful; | ||
• | Bluegreen may be adversely affected by extensive federal, state and local laws and regulations and changes in applicable laws and regulations, including with respect to the imposition of additional taxes on operations, and results of audits of Bluegreen’s tax returns or those of its subsidiaries may have a material and adverse impact on its financial condition; | ||
• | low consumer demand for homesites has had and may continue to have an adverse impact on Bluegreen’s Communities segment; | ||
• | environmental liabilities, including claims with respect to mold or hazardous or toxic substances, could have a material adverse impact on Bluegreen’s business; | ||
• | the ratings of third-party rating agencies could adversely impact Bluegreen’s ability to obtain, renew, or extend credit facilities, debt, or otherwise raise capital; | ||
• | in the near term, Bluegreen has significant debt maturing and advance periods expiring on its receivable-backed credit facilities, which could adversely impact its liquidity position, and, it may not be successful in refinancing or renewing the debt on favorable terms, if at all; | ||
• | Bluegreen’s financial statements are prepared based on certain estimates, including those related to future cash flows which in turn are based upon expectations of its performance given current and projected forecasts of the economy and real estate markets, and Bluegreen’s results and financial condition may be materially and adversely impacted if the adverse conditions in the real estate market continue for longer than expected or deteriorate further or if its performance does not otherwise meet its expectations; | ||
• | the loss of the services of Bluegreen’s key management and personnel could adversely affect its business; and | ||
• | Bluegreen’s success at managing the risks involved in the foregoing. |
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(BankAtlantic Bancorp)
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(BankAtlantic Bancorp)
• | attracting checking and savings deposits from individuals and business customers, | ||
• | originating commercial non-mortgage, consumer and small business loans, | ||
• | holding and actively managing its commercial real estate loan portfolio, | ||
• | purchasing wholesale residential loans, and | ||
• | purchasing investments including primarily mortgage-backed and municipal securities and tax certificates. |
For the Years Ended December 31, | ||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||
Total risk-based capital | % | 11.72 | 12.56 | 11.63 | ||||||||||||
Tier 1 risk-based capital | % | 9.68 | 10.63 | 9.80 | ||||||||||||
Tier 1/core capital | % | 6.22 | 7.58 | 6.80 |
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(BankAtlantic Bancorp)
• | Focused efforts and enhanced staffing relating to loan work-outs, collection processes and valuations; | ||
• | Ceased originating land and residential acquisition, development and construction loans; | ||
• | Substantially reduced home equity loan originations through underwriting requirements based on lower loan to value ratios; | ||
• | Froze certain home equity loan unused lines of credit based on declines in borrower credit scores or the market value of loan collateral; and | ||
• | Transferred certain non-performing commercial real estate loans to the Parent Company in March 2008 in exchange for $94.8 million. |
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(BankAtlantic Bancorp)
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(BankAtlantic Bancorp)
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||
Amount | Pct | Amount | Pct | Amount | Pct | Amount | Pct | Amount | Pct | |||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Residential | $ | 1,222 | 40.31 | 1,550 | 42.35 | 1,930 | 45.34 | 2,156 | 47.66 | 2,151 | 46.81 | |||||||||||||||||||||||||||||
Consumer — home equity | 604 | 19.92 | 670 | 18.31 | 719 | 16.89 | 676 | 14.94 | 562 | 12.23 | ||||||||||||||||||||||||||||||
Construction and development | 145 | 4.78 | 223 | 6.09 | 301 | 7.07 | 416 | 9.20 | 475 | 10.34 | ||||||||||||||||||||||||||||||
Commercial | 744 | 24.54 | 897 | 24.51 | 930 | 21.85 | 882 | 19.49 | 973 | 21.17 | ||||||||||||||||||||||||||||||
Small business | 203 | 6.70 | 213 | 5.82 | 219 | 5.14 | 212 | 4.69 | 187 | 4.07 | ||||||||||||||||||||||||||||||
Other loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial non-mortgage | 134 | 4.42 | 154 | 4.21 | 143 | 3.36 | 131 | 2.9 | 157 | 3.42 | ||||||||||||||||||||||||||||||
Small business non-mortgage | 99 | 3.26 | 99 | 2.70 | 108 | 2.54 | 106 | 2.34 | 98 | 2.13 | ||||||||||||||||||||||||||||||
Consumer | 19 | 0.63 | 21 | 0.57 | 26 | 0.61 | 31 | 0.68 | 26 | 0.57 | ||||||||||||||||||||||||||||||
Loans held for sale | 21 | 0.69 | 4 | 0.11 | 3 | 0.07 | 4 | 0.09 | 9 | 0.20 | ||||||||||||||||||||||||||||||
Total | 3,191 | 105.26 | 3,831 | 104.67 | 4,379 | 102.87 | 4,614 | 101.99 | 4,638 | 100.94 | ||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||
Unearned discounts (premiums) | (2 | ) | (0.06 | ) | (3 | ) | (0.08 | ) | (3 | ) | (0.07 | ) | (4 | ) | (0.09 | ) | (1 | ) | (0.02 | ) | ||||||||||||||||||||
Allowance for loan losses | 161 | 5.31 | 174 | 4.75 | 125 | 2.94 | 94 | 2.08 | 44 | 0.96 | ||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 3,032 | 100.00 | 3,660 | 100.00 | 4,257 | 100.00 | 4,524 | 100.00 | 4,595 | 100.00 | |||||||||||||||||||||||||||||
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(BankAtlantic Bancorp)
As of December 31, | ||||||||||||||||
2010 | 2009 | 2008 | 2007 | |||||||||||||
Builder land bank loans | $ | 10 | 44 | 62 | 150 | |||||||||||
Land acquisition and development loans | 119 | 172 | 210 | 245 | ||||||||||||
Land acquisition, development and construction loans | 4 | 11 | 32 | 108 | ||||||||||||
Total commercial residential loans | $ | 133 | 227 | 304 | 503 | |||||||||||
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(BankAtlantic Bancorp)
Corporate | ||||||||||||||||||||||||||||||||
Treasury | Mortgage- | Bond | Weighted | |||||||||||||||||||||||||||||
Tax | and | Tax-Exempt | Taxable | Backed | and | Average | ||||||||||||||||||||||||||
Certificates | Agencies | Securities | Securities | Securities | Other | Total | Yield | |||||||||||||||||||||||||
December 31, 2010 | ||||||||||||||||||||||||||||||||
Maturity: (1) | ||||||||||||||||||||||||||||||||
One year or less | $ | 34,725 | — | 160,395 | 19,922 | — | — | 215,042 | 1.70 | % | ||||||||||||||||||||||
After one through five years | 56,013 | 60,143 | 1,728 | — | 216 | — | 118,100 | 3.24 | ||||||||||||||||||||||||
After five through ten years | — | — | — | 24,406 | — | 24,406 | 3.64 | |||||||||||||||||||||||||
After ten years | — | — | — | 156,261 | — | 156,261 | 2.57 | |||||||||||||||||||||||||
Fair values (2) | $ | 90,738 | 60,143 | 162,123 | 19,922 | 180,883 | — | 513,809 | 2.41 | % | ||||||||||||||||||||||
Amortized cost (2) | $ | 89,789 | 60,000 | 162,113 | 19,936 | 171,253 | 503,091 | 3.37 | % | |||||||||||||||||||||||
Weighted average yield based on fair values | 5.46 | 5.66 | 0.95 | 1.32 | 3.41 | — | 2.41 | |||||||||||||||||||||||||
Weighted average maturity (yrs) | 2.1 | 2.7 | 0.50 | 0.53 | 20.58 | — | 7.88 | |||||||||||||||||||||||||
December 31, 2009 | ||||||||||||||||||||||||||||||||
Fair values (2) | $ | 112,472 | — | — | — | 319,292 | 250 | 432,014 | 4.00 | % | ||||||||||||||||||||||
Amortized cost (2) | $ | 110,991 | — | — | — | 307,314 | 250 | 418,555 | 5.35 | % | ||||||||||||||||||||||
December 31, 2008 | ||||||||||||||||||||||||||||||||
Fair values (2) | $ | 224,434 | — | — | — | 699,224 | 250 | 923,908 | 5.25 | % | ||||||||||||||||||||||
Amortized cost (2) | $ | 213,534 | — | — | — | 687,344 | 250 | 901,128 | 6.00 | % | ||||||||||||||||||||||
(1) | Except for tax certificates, maturities are based upon contractual maturities. Tax certificates do not have stated maturities, and estimates in the above table are based upon historical repayment experience (generally 2 years). | |
(2) | Equity and tax exempt securities held by the Parent Company with a cost of $1.5 million, $1.5 million and $3.6 million and a fair value of $1.5 million, $1.5 million and $4.1 million, at December 31, 2010, 2009 and 2008, respectively, were excluded from the above table. At December 31, 2010, equities held by BankAtlantic with a cost of $1.3 million and a fair value of $1.3 million were excluded from the above table. |
December 31, 2010 (1) | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Appreciation | Depreciation | Fair Value | |||||||||||||
Tax certificates: | ||||||||||||||||
Cost equals market | $ | 89,789 | 949 | — | 90,738 | |||||||||||
Securities available for sale: | ||||||||||||||||
Investment securities: | ||||||||||||||||
Cost equals market | — | — | — | — | ||||||||||||
Market over cost | 76,436 | 41 | — | 76,477 | ||||||||||||
Cost over market | 105,613 | — | (45 | ) | 105,568 | |||||||||||
Mortgage-backed securities : | ||||||||||||||||
Cost equals market | — | — | — | — | ||||||||||||
Market over cost | 231,253 | 9,773 | — | 241,026 | ||||||||||||
Cost over market | — | — | — | — | ||||||||||||
Total | $ | 503,091 | 10,763 | (45 | ) | 513,809 | ||||||||||
(1) | The above table excludes equity securities held by the Parent Company with a cost and fair value of $1.5 million at December 31, 2010 and equities held by BankAtlantic with a cost and fair value of $1.3 million at December 31, 2010. |
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(BankAtlantic Bancorp)
• | Securities sold under agreements to repurchase include a sale of a portion of its current investment portfolio (usually mortgage-backed securities and REMICs) at a negotiated rate and an agreement to repurchase the same assets on a specified future date. BankAtlantic issues repurchase agreements to institutions and to its customers. These transactions are collateralized by securities in its investment portfolio but are not insured by the Federal Deposit Insurance Corporation (“FDIC”). See note 21 to the “Notes to Consolidated Financial Statements” for more information regarding BankAtlantic’s securities sold under agreements to repurchase borrowings. | ||
• | Treasury tax and loan borrowings represent BankAtlantic’s participation in the Federal Reserve Treasury Investment Program. Under this program, the Federal Reserve places funds with BankAtlantic obtained from treasury tax and loan payments received by financial institutions. See note 22 to the “Notes to Consolidated Financial Statements” for more information regarding BankAtlantic’s treasury tax and loan borrowings. |
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(BankAtlantic Bancorp)
As of December 31, 2010 | ||||||||||||
Gross | ||||||||||||
Carrying | Unrealized | Estimated | ||||||||||
(in thousands) | Value | Depreciation | Fair Value | |||||||||
Cash and cash equivalents | $ | 12,226 | — | 12,226 | ||||||||
Securities available for sale | 10 | 2 | 8 | |||||||||
Private investment securities | 1,500 | — | 1,500 | |||||||||
Total | $ | 13,736 | 2 | 13,734 | ||||||||
(in millions) | Amount | |||
Commercial residential real estate loans | $ | 10 | ||
Commercial other | 7 | |||
Total commercial loans | 17 | |||
Real estate owned | 10 | |||
Total loans and real estate owned | $ | 27 | ||
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(i) | incur, issue, renew or roll over any current lines of credit, guarantee the debt of any other entity or otherwise incur any additional debt, except as contemplated by BFC’s business plan or in connection with BankAtlantic’s compliance requirements applicable to it; | ||
(ii) | declare or make any dividends or other capital distributions other than dividends payable on BFC’s currently outstanding preferred stock of approximately $187,500 a quarter; or | ||
(iii) | enter into any new agreements, contracts or arrangements or materially modify any existing agreements, contracts or arrangements with BankAtlantic not consistent with past practices. |
• | acquiring another savings institution or its holding company without prior written approval of the OTS; | ||
• | acquiring or retaining, with certain exceptions, more than 5% of a non-subsidiary savings institution, a non-subsidiary holding company, or a non-subsidiary company engaged in activities other than those permitted by HOLA; or | ||
• | acquiring or retaining control of a depository institution that is not insured by the FDIC. |
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• | Principal changes for federal thrifts and savings and loan holding companies.The Dodd-Frank Act preserves the charter for federal thrifts, but will eliminate the OTS as the primary federal regulator for federal thrifts and savings and loan holding companies. The OTS will be abolished by April 2012 and its functions and personnel distributed among the OCC, FDIC, and the Federal Reserve. Primary jurisdiction for the supervision and regulation of federal thrifts, including BankAtlantic, will be transferred to the OCC; supervision and regulation of savings and loan holding companies, including BFC and BankAtlantic Bancorp, will be transferred to the Federal Reserve. Although the Dodd-Frank Act maintains the federal thrift charter, it eliminates certain benefits of the charter and imposes new penalties for failure to comply with the QTL test. Under the Dodd-Frank Act, risk-based and leverage capital standards currently applicable to U.S. insured depository institutions will be imposed on U.S. bank holding companies and savings and loan holding companies, and depository institutions and their holding companies will be subject to minimum risk-based and leverage capital requirements on a consolidated basis. In addition, the Dodd-Frank Act requires that savings and loan holding companies be well-capitalized and well managed in the same manner as bank holding companies in order to engage in the expanded financial activities permissible only for a financial holding company. | ||
• | Source of strength.The Dodd-Frank Act requires all companies, including savings and loan holding companies, that directly or indirectly control an insured depository institution to serve as a source of strength for the institution. Under this requirement, regulations may seek to require BFC and/or BankAtlantic Bancorp to provide financial assistance to BankAtlantic. | ||
• | Limitation on federal preemption. The Dodd-Frank Act significantly reduces the ability of national banks and federal thrifts to rely upon federal preemption of state consumer financial laws. Although the OCC, as the new primary regulator of federal thrifts, will have the ability to make preemption determinations where certain conditions are met, the broad rollback of federal preemption has the potential to create a patchwork of federal and state compliance obligations. This could, in turn, result in significant new regulatory requirements applicable to BFC, BankAtlantic Bancorp and BankAtlantic, potentially significant changes in our operations and increases in our compliance costs. It could also result in uncertainty concerning compliance, with attendant regulatory and litigation risks. |
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• | Mortgage loan origination and risk retention. The Dodd-Frank Act contains additional regulatory requirements that may affect our operations and result in increased compliance costs. For example, the Dodd-Frank Act imposes new standards for mortgage loan originations on all lenders, including banks and thrifts, in an effort to require steps to verify a borrower’s ability to repay. In addition, the Dodd-Frank Act generally requires lenders or securitizers to retain an economic interest in the credit risk relating to loans the lender sells or mortgage and other asset-backed securities that the securitizer issues. The risk retention requirement generally will be 5%, but could be increased or decreased by regulation. | ||
• | Imposition of restrictions on certain activities. The Dodd-Frank Act requires new regulations for the over-the-counter derivatives market, including requirements for clearing, exchange trading, capital, margin, and reporting. Additionally, the Dodd-Frank Act requires that certain swaps and derivatives activities be “pushed out” of insured depository institutions and conducted in non-bank affiliates, significantly restricts the ability of a member of a depository institution holding company group to invest in or sponsor certain private funds, and broadly restricts such entities from engaging in “proprietary trading,” subject to limited exemptions. These restrictions may affect our ability to manage certain risks in our business. |
• | Expanded FDIC resolution authority. While insured depository institutions are currently subject to the FDIC’s resolution process, the Dodd-Frank Act creates a new mechanism for the FDIC to conduct the orderly liquidation of certain “covered financial companies,” including bank and thrift holding companies and systemically significant non-bank financial companies. Upon certain findings being made, the FDIC may be appointed receiver for a covered financial company, and would be tasked with conducting an orderly liquidation of the entity. The FDIC liquidation process is modeled on the existing Federal Deposit Insurance Act, or FDI Act, bank resolution regulations, and generally gives the FDIC more discretion than in the traditional bankruptcy context. | ||
• | Consumer Financial Protection Bureau (CFPB). The Dodd-Frank Act creates a new independent CFPB within the Federal Reserve. The CFPB is tasked with establishing and implementing rules and regulations under certain federal consumer protection laws with respect to the conduct of providers of certain consumer financial products and services. The CFPB has rulemaking authority over many of the statutes governing products and services offered to bank and thrift consumers. For banking organizations with assets of $10 billion or more, the CFPB has exclusive rule making and examination, and primary enforcement authority under federal consumer financial law. In addition, the Dodd-Frank Act permits states to adopt consumer protection laws and regulations that are stricter than those regulations promulgated by the CFPB. Compliance with any such new regulations would increase our cost of operations. | ||
• | Deposit insurance. The Dodd-Frank Act makes permanent the general $250,000 deposit insurance limit for insured deposits. The Dodd-Frank Act also extends until January 1, 2013, federal deposit coverage for the full net amount held by depositors in non-interest bearing transaction accounts. Amendments to the FDI Act also revise the assessment base against which an insured depository institution’s deposit insurance premiums paid to the Deposit Insurance Fund (“DIF”) will be calculated. Under the amendments, the assessment base will no longer be the institution’s deposit base, but rather its average consolidated total assets less its average tangible equity. Additionally, the Dodd-Frank Act makes changes to the minimum designated reserve ratio of the DIF, increasing the minimum from 1.15 percent to 1.35 percent of the estimated amount of total insured deposits, and eliminating the requirement that the FDIC pay dividends to depository institutions when the reserve ratio exceeds certain thresholds. Several of these provisions could increase the FDIC deposit insurance premiums paid by BankAtlantic. | ||
• | Transactions with affiliates and insiders. The Dodd-Frank Act generally enhances the restrictions on transactions with affiliates under Section 23A and 23B of the Federal Reserve Act, including an expansion of the definition of “covered transactions” and an increase in the amount of time for which collateral requirements regarding covered credit transactions must be satisfied. Insider transaction limitations are expanded through the strengthening of loan restrictions to insiders and the expansion of the types of transactions subject to the various limits, including derivatives transactions, repurchase agreements, reverse repurchase agreements and securities lending or borrowing transactions. Restrictions are also placed on certain asset sales to and from an insider to an institution, including requirements that such sales be on market terms and, in certain circumstances, approved by the institution’s board of directors. | ||
• | Enhanced lending limits. The Dodd-Frank Act strengthens the existing limits on a depository institution’s credit exposure to one borrower. Federal banking law currently limits a federal thrift’s ability to extend credit |
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to one person (or group of related persons) in an amount exceeding certain thresholds. The Dodd-Frank Act expands the scope of these restrictions to include credit exposure arising from derivative transactions, repurchase agreements, and securities lending and borrowing transactions. | |||
• | Corporate governance. The Dodd-Frank Act addresses many investor protection, corporate governance and executive compensation matters that will affect most U.S. publicly traded companies. The Dodd-Frank Act: (1) grants stockholders of U.S. publicly traded companies an advisory vote on executive compensation; (2) enhances independence requirements for compensation committee members; (3) requires companies listed on national securities exchanges to adopt incentive-based compensation clawback policies for executive officers; and (4) provides the SEC with authority to adopt proxy access rules that would allow stockholders of publicly traded companies to nominate candidates for election as directors and to have those nominees included in a company’s proxy materials. |
• | mortgage loans secured by residential and commercial real estate; | ||
• | commercial and consumer loans; | ||
• | certain types of debt securities; and | ||
• | certain other assets. |
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• | a tangible capital requirement for savings associations to have tangible capital in an amount equal to at least 1.5% of adjusted total assets; | ||
• | a leverage ratio requirement: |
• | for savings associations assigned the highest composite rating of 1, to have core capital in an amount equal to at least 3% of adjusted total assets; or | ||
• | for savings associations assigned any other composite rating, to have core capital in an amount equal to at least 4% of adjusted total assets, or a higher percentage if warranted by the particular circumstances or risk profile of the savings association; and |
• | a risk-based capital requirement for savings associations to have capital in an amount equal to at least 8% of risk-weighted assets. |
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• | the size of the savings association, on which the basic assessment is based; | ||
• | the savings association’s supervisory condition, which results in an additional assessment based on a percentage of the basic assessment for any savings association with a composite rating of 3, 4 or 5 in its most recent safety and soundness examination; and | ||
• | the complexity of the savings association’s operations, which results in an additional assessment based on a percentage of the basic assessment for any savings association that has more than $1 billion in trust assets that it administers, loans that it services for others or assets covered by its recourse obligations or direct credit substitutes. |
• | a lending test, to evaluate the institution’s record of making loans in its designated assessment areas; | ||
• | an investment test, to evaluate the institution’s record of investing in community development projects, affordable housing, and programs benefiting low or moderate income individuals and businesses; and | ||
• | a service test, to evaluate the institution’s delivery of banking services throughout its designated assessment area. |
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• | making or renewing a loan or other extension of credit to an affiliate; | ||
• | purchasing, or investing in, a security issued by an affiliate; | ||
• | purchasing an asset from an affiliate; | ||
• | accepting a security issued by an affiliate as collateral for a loan or other extension of credit to any person or entity; and | ||
• | issuing a guarantee, acceptance or letter of credit on behalf of an affiliate. |
• | making a loan or other extension of credit to an affiliate that is engaged in any non-bank holding company activity; and | ||
• | purchasing, or investing in, securities issued by an affiliate that is not a subsidiary. |
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• | its total capital is at least 10% of its risk-weighted assets; | ||
• | its core capital is at least 6% of its risk-weighted assets; | ||
• | its core capital is at least 5% of its adjusted total assets; and | ||
• | it is not subject to any written agreement, order, capital directive or prompt corrective action directive issued by the OTS, or certain regulations, to meet or maintain a specific capital level for any capital measure. |
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• | internal policies, procedures and controls designed to implement and maintain the savings association’s compliance with all of the requirements of the USA PATRIOT Act, the BSA and related laws and regulations; | ||
• | systems and procedures for monitoring and reporting of suspicious transactions and activities; | ||
• | a designated compliance officer; | ||
• | employee training; | ||
• | an independent audit function to test the anti-money laundering program; | ||
• | procedures to verify the identity of each customer upon the opening of accounts; and | ||
• | heightened due diligence policies, procedures and controls applicable to certain foreign accounts and relationships. |
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• | require lenders to disclose credit terms in meaningful and consistent ways; | |
• | require financial institutions to establish policies and procedures regarding identity theft and notify customers of certain information concerning their credit reporting; | |
• | prohibit discrimination against an applicant in any consumer or business credit transaction; | |
• | prohibit discrimination in housing-related lending activities; | |
• | require certain lender banks to collect and report applicant and borrower data regarding loans for home purchase or improvement projects; | |
• | require lenders to provide borrowers with information regarding the nature and cost of real estate settlements; | |
• | prohibit certain lending practices and limit escrow account amounts with respect to real estate transactions; and | |
• | prescribe penalties for violations of the requirements of consumer protection statutes and regulations. |
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• | the current economic downturn has adversely impacted consumer spending patterns and has had negative effects on consumer discretionary spending; | ||
• | the limited availability and high cost of credit may continue or deteriorate further; | ||
• | higher than normal food costs may adversely impact our results of operations; | ||
• | existing or new restaurants may not perform as expected; | ||
• | the inability to construct new restaurants and remodel existing restaurants within projected budgets and time periods; | ||
• | increases in the minimum wage; | ||
• | increases in unemployment; | ||
• | intense competition in the restaurant industry; | ||
• | the food service industry is affected by litigation and publicity concerning food quality, health and other issues, which could cause customers to avoid a particular restaurant, result in significant liabilities or litigation costs or damage reputation or brand recognition; and | ||
• | implementing growth and renovation strategies may strain available resources. |
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• | support our operations; | ||
• | finance the acquisition and development of VOI inventory and residential land; | ||
• | finance a substantial percentage of our sales; and | ||
• | satisfy our debt and other obligations. |
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• | levels of unemployment; | ||
• | levels of discretionary disposable income; | ||
• | levels of consumer confidence; | ||
• | the availability of financing; | ||
• | overbuilding or decreases in demand; | ||
• | interest rates; and | ||
• | federal, state and local taxation methods. |
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• | timeshare project registration laws; | ||
• | real estate licensure laws; | ||
• | mortgage licensure laws; | ||
• | sellers of travel licensure laws; | ||
• | anti-fraud laws; | ||
• | consumer protection laws; | ||
• | telemarketing laws; | ||
• | prize, gift and sweepstakes laws; and | ||
• | consumer credit laws. |
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• | changes to the thrift supervisory structure, including the elimination of the Office of Thrift Supervision and the transfer of oversight of federally chartered thrift institutions to the OCC; | ||
• | changes to regulatory capital requirements at the holding company level; | ||
• | creation of new government regulatory agencies; | ||
• | limitations on federal preemption; | ||
• | limitations on debit card interchange fees; | ||
• | changes in insured depository institution regulations; and | ||
• | mortgage loan origination and risk retention. |
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• | the risk characteristics of various classifications of loans; | ||
• | previous loan loss experience; | ||
• | specific loans that have probable loss potential; | ||
• | delinquency trends; | ||
• | estimated fair value of the collateral; | ||
• | current economic conditions; | ||
• | the views of its regulators; and | ||
• | geographic and industry loan concentrations. |
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• | interest income on interest-earning assets, such as loans; and | ||
• | interest expense on interest-bearing liabilities, such as deposits. |
• | it amortizes premiums on acquired loans and securities, and if loans or securities are prepaid, the unamortized premium will be charged off; and | ||
• | the yields it earns on the investment of funds that it receives from prepaid loans and securities are generally less than the yields that it earned on the prepaid loans. |
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• | BankAtlantic’s borrowers may be unable to make timely repayments of their loans, or the value of real estate collateral securing the payment of such loans may continue to decrease which could result in increased delinquencies, foreclosures and customer bankruptcies, any of which would increase levels of non-performing loans resulting in significant credit losses, and increased expenses and could have a material adverse effect on our operating results. | ||
• | Further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations, may result in an inability to borrow on favorable terms or at all from other financial institutions or government entities. | ||
• | Increased regulation of the industry may increase costs, decrease fee income and limit BankAtlantic’s activities and operations. | ||
• | Increased competition among financial services companies based on the recent consolidation of competing financial institutions and the conversion of investment banks into bank holding companies may adversely affect BankAtlantic’s ability to competitively market its products and services. | ||
• | BankAtlantic may be required to pay higher FDIC deposit premiums and assessments. | ||
• | Continued asset valuation declines could adversely impact our credit losses and result in additional impairments of goodwill and other assets. |
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• | the provisions in our Restated Articles of Incorporation regarding the voting rights of our Class B Common Stock; | ||
• | the authority of our board of directors to issue additional shares of common or preferred stock and to fix the relative rights and preferences of the preferred stock without additional shareholder approval; | ||
• | the division of our board of directors into three classes of directors with three-year staggered terms; and | ||
• | advance notice procedures to be complied with by shareholders in order to make shareholder proposals or nominate directors. |
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Miami - | Palm | |||||||||||||||
Dade | Broward | Beach | Tampa | |||||||||||||
Owned full-service branches | 9 | 13 | 25 | 7 | ||||||||||||
Leased full-service branches | 10 | 11 | 5 | 5 | ||||||||||||
Ground leased full-service branches (1) | 3 | 3 | 1 | 7 | ||||||||||||
Total full-service branches | 22 | 27 | 31 | 19 | ||||||||||||
Lease expiration dates | 2011-2020 | 2011-2015 | 2011-2016 | 2011-2023 | ||||||||||||
Ground lease expiration dates | 2026-2027 | 2017-2072 | 2026 | 2026-2032 | ||||||||||||
(1) | Branches in which BankAtlantic owns the building and leases the land. |
Miami - | Palm | Orlando / | ||||||||||||||||||
Dade | Broward | Beach | Tampa | Jacksonville | ||||||||||||||||
Leased drive-through facilities | 1 | 2 | — | — | — | |||||||||||||||
Leased drive through expiration dates | 2015 | 2011-2014 | — | — | — | |||||||||||||||
Leased back-office facilities | 1 | — | — | 2 | 1 | |||||||||||||||
Leased back-office expiration dates | 2018 | — | — | 2012-2014 | 2013 | |||||||||||||||
Miami - | Palm | Tampa | Orlando / | |||||||||||||||||
Dade | Broward | Beach | Bay | Jacksonville | ||||||||||||||||
Executed leases held for sublease | — | 2 | 1 | 4 | 2 | |||||||||||||||
Executed lease expiration dates | — | 2013-2030 | 2028 | 2028-2048 | 2028-2029 | |||||||||||||||
Land held for sale | — | — | 1 | 1 | 4 | |||||||||||||||
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PURCHASES OF EQUITY SECURITIES
Our Class A Common Stock and Class B Common Stock have substantially identical terms, except as follows: | |||
• | Holders of our Class A Common Stock are entitled to one vote for each share held, with all holders of Class A Common Stock possessing in the aggregate 22% of the total voting power. Holders of Class B Common Stock have the remaining 78% of the total voting power. If the number of shares of Class B Common Stock outstanding decreases to 1,800,000 shares, the Class A Common Stock’s aggregate voting power will increase to 40% and the Class B Common Stock will have the remaining 60%. If the number of shares of Class B Common Stock outstanding decreases to 1,400,000 shares, the Class A Common Stock’s aggregate voting power will increase to 53% and the Class B Common Stock will have the remaining 47%. If the number of shares of Class B Common Stock outstanding decreases to 500,000, the fixed voting percentages will be eliminated, and holders of our Class A Common Stock and holders of our Class B Common Stock will each be entitled to one vote per share. | ||
• | Each share of Class B Common Stock is convertible at the option of the holder thereof into one share of Class A Common Stock. |
Class A Common Stock | Class B Common Stock | |||||||||||||||
High | Low | High | Low | |||||||||||||
2009 | ||||||||||||||||
First Quarter | $ | 0.32 | $ | 0.06 | $ | 0.25 | $ | 0.25 | ||||||||
Second Quarter | $ | 0.51 | $ | 0.16 | $ | 0.51 | $ | 0.25 | ||||||||
Third Quarter | $ | 0.70 | $ | 0.26 | $ | 0.40 | $ | 0.30 | ||||||||
Fourth Quarter | $ | 0.74 | $ | 0.31 | $ | 1.24 | $ | 0.31 | ||||||||
2010 | ||||||||||||||||
First Quarter | $ | 0.55 | $ | 0.26 | $ | 0.65 | $ | 0.60 | ||||||||
Second Quarter | $ | 0.99 | $ | 0.39 | $ | 1.25 | $ | 0.85 | ||||||||
Third Quarter | $ | 0.44 | $ | 0.30 | $ | 0.85 | $ | 0.85 | ||||||||
Fourth Quarter | $ | 0.38 | $ | 0.20 | $ | 0.85 | $ | 0.35 |
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For the Years Ended December 31, | ||||||||||||||||||||
Statement of Operations Data: | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
As Revised (e) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Real Estate and Other | $ | 398,480 | 54,279 | 16,870 | 415,881 | 573,574 | ||||||||||||||
Financial Services | 284,196 | 354,087 | 449,571 | 520,793 | 507,746 | |||||||||||||||
682,676 | 408,366 | 466,441 | 936,674 | 1,081,320 | ||||||||||||||||
Costs and Expenses | ||||||||||||||||||||
Real Estate and Other | 451,779 | 207,295 | 76,470 | 711,073 | 617,211 | |||||||||||||||
Financial Services | 426,856 | 573,467 | 634,970 | 579,458 | 474,311 | |||||||||||||||
878,635 | 780,762 | 711,440 | 1,290,531 | 1,091,522 | ||||||||||||||||
Gain on bargain purchase of Bluegreen | — | 182,849 | — | — | — | |||||||||||||||
(Loss) gain on settlement of investment in Woodbridge’s subsidiary | (977 | ) | 29,679 | — | — | — | ||||||||||||||
Gain on extinguishment of debt | 13,049 | — | — | — | — | |||||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | (851 | ) | 33,381 | 15,064 | 12,724 | 10,935 | ||||||||||||||
Impairment of unconsolidated affiliates | — | (31,181 | ) | (96,579 | ) | — | — | |||||||||||||
Impairment on investment | — | (2,396 | ) | (15,548 | ) | — | — | |||||||||||||
Other income | 2,691 | 9,763 | 9,826 | 17,183 | 11,479 | |||||||||||||||
(Loss) income from continuing operations before income taxes | (182,047 | ) | (150,301 | ) | (332,236 | ) | (323,950 | ) | 12,212 | |||||||||||
Less: (Benefit) provision for income taxes | 105 | (68,900 | ) | 15,763 | (70,246 | ) | (516 | ) | ||||||||||||
(Loss) income from continuing operations | (182,152 | ) | (81,401 | ) | (347,999 | ) | (253,704 | ) | 12,728 | |||||||||||
Discontinued operations | 1,965 | (11,931 | ) | 19,388 | 8,799 | (10,554 | ) | |||||||||||||
Extraordinary gain | — | — | 9,145 | 2,403 | — | |||||||||||||||
Net (loss) income | (180,187 | ) | (93,332 | ) | (319,466 | ) | (242,502 | ) | 2,174 | |||||||||||
Less: Net (loss) income attributable to noncontrolling interests | (76,339 | ) | (120,611 | ) | (260,567 | ) | (212,043 | ) | 4,395 | |||||||||||
Net (loss) income attributable to BFC | (103,848 | ) | 27,279 | (58,899 | ) | (30,459 | ) | (2,221 | ) | |||||||||||
Preferred Stock dividends | (750 | ) | (750 | ) | (750 | ) | (750 | ) | (750 | ) | ||||||||||
Net (loss) income allocable to common stock | $ | (104,598 | ) | 26,529 | (59,649 | ) | (31,209 | ) | (2,971 | ) | ||||||||||
Common Share Data (a), (b) (c) Basic (Loss) Earnings Per Common Share | ||||||||||||||||||||
(Loss) earnings per share from continuing operations | $ | (1.42 | ) | 0.71 | (1.63 | ) | (0.90 | ) | (0.04 | ) | ||||||||||
Earnings (loss) per share from discontinued operations | 0.03 | (0.24 | ) | 0.11 | 0.03 | (0.05 | ) | |||||||||||||
Earnings per share from extraordinary gain | — | — | 0.20 | 0.06 | — | |||||||||||||||
Net (loss) income per common share | $ | (1.39 | ) | 0.47 | (1.32 | ) | (0.81 | ) | (0.09 | ) | ||||||||||
Diluted (Loss) Earnings Per Common Share | ||||||||||||||||||||
(Loss) earnings per share from continuing operations | $ | (1.42 | ) | 0.71 | (1.63 | ) | (0.90 | ) | (0.04 | ) | ||||||||||
Earnings (loss) per share from discontinued operations | 0.03 | (0.24 | ) | 0.11 | 0.03 | (0.05 | ) | |||||||||||||
Earnings per share from extraordinary gain | — | — | 0.20 | 0.06 | — | |||||||||||||||
Net (loss) income per common share | $ | (1.39 | ) | 0.47 | (1.32 | ) | (0.81 | ) | (0.09 | ) | ||||||||||
Basic weighted average number of common shares outstanding | 75,379 | 57,235 | 45,097 | 38,778 | 33,249 | |||||||||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 75,379 | 57,235 | 45,097 | 38,778 | 33,249 | |||||||||||||||
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(Dollars in thousands)
December 31, | ||||||||||||||||||||
Balance Sheet (at period end) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
As Revised (e) | ||||||||||||||||||||
Loans, loans held for sale and notes receivable, net | $ | 3,614,455 | 3,963,086 | 4,317,645 | 4,528,538 | 4,603,505 | ||||||||||||||
Real estate inventory | $ | 343,497 | 484,927 | 268,763 | 270,229 | 847,492 | ||||||||||||||
Securities | $ | 556,842 | 467,520 | 979,417 | 1,191,173 | 1,081,980 | ||||||||||||||
Total assets | $ | 5,813,066 | 6,042,101 | 6,395,582 | 7,114,433 | 7,605,766 | ||||||||||||||
Deposits | $ | 3,891,190 | 3,948,818 | 3,919,796 | 3,953,405 | 3,867,036 | ||||||||||||||
Securities sold under agreements to repurchase and federal funds purchased | $ | 22,764 | 27,271 | 279,726 | 159,905 | 128,411 | ||||||||||||||
Other borrowings (d) | $ | 1,440,353 | 1,362,000 | 1,556,362 | 1,992,718 | 2,398,662 | ||||||||||||||
BFC shareholders’ equity | $ | 142,872 | 245,083 | 112,867 | 184,037 | 177,585 | ||||||||||||||
Noncontrolling interests | $ | 78,256 | 159,312 | 262,554 | 558,950 | 698,323 | ||||||||||||||
Total equity | $ | 221,128 | 404,395 | 375,421 | 742,987 | 875,908 |
(a) | Since its inception, BFC has not paid any cash dividends on its common stock. | |
(b) | While the Company has two classes of common stock outstanding, the two-class method is not presented because the Company’s capital structure does not provide for different dividend rates or other preferences, other than voting rights, between the two classes. | |
(c) | Prior to the merger of I.R.E. Realty Advisory Group, Inc. (“I.R.E. RAG”) with and into the Company during November 2007, the 4,764,285 shares of the Company’s Class A Common Stock and 500,000 shares of the Company’s Class B Common Stock that were owned by I.R.E. RAG were considered outstanding. However, because the Company owned 45.5% of the outstanding common stock of I.R.E. RAG, 2,165,367 shares of Class A Common Stock and 227,250 shares of Class B Common Stock were eliminated from the number of shares outstanding for purposes of computing earnings per share. | |
(d) | Other borrowings include advances from FHLB, notes and mortgage notes payable, and other borrowings, receivable-backed notes payable and junior subordinated debentures. | |
(e) | See Notes 1 of the “Notes to Consolidated Financial Statements” for additional information about our revisions to the Company’s consolidated financial statements. |
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AND RESULTS OF OPERATIONS
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For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
As Revised | ||||||||||||
Real Estate and Other | $ | (38,159 | ) | 106,876 | (128,755 | ) | ||||||
Financial Services | (143,993 | ) | (188,277 | ) | (219,244 | ) | ||||||
Loss from continuing operations | (182,152 | ) | (81,401 | ) | (347,999 | ) | ||||||
Discontinued operations, less income tax | 1,965 | (11,931 | ) | 19,388 | ||||||||
Extraordinary gain, net of income tax | — | — | 9,145 | |||||||||
Net loss | (180,187 | ) | (93,332 | ) | (319,466 | ) | ||||||
Less: Net loss attributable to noncontrolling interests | (76,339 | ) | (120,611 | ) | (260,567 | ) | ||||||
Net (loss) income attributable to BFC | (103,848 | ) | 27,279 | (58,899 | ) | |||||||
5% Preferred stock dividends | (750 | ) | (750 | ) | (750 | ) | ||||||
Net (loss) income allocable to common stock | $ | (104,598 | ) | 26,529 | (59,649 | ) | ||||||
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• | an increase in BankAtlantic Bancorp’s interest-bearing deposits in other banks primarily reflecting $284 million of higher cash balances at the Federal Reserve Bank and investments in $46 million of short-term time deposits at other banks; | ||
• | an increase in securities available for sale reflecting BankAtlantic Bancorp’s purchase of $182 million of agency and municipal securities that mature in less than one year partially offset by the sale of $44 million of mortgage-backed securities as well as repayments; | ||
• | a decrease in BankAtlantic Bancorp’s tax certificate balances primarily relating to redemptions, partially offset by the purchase of $102 million of tax certificates during 2010; | ||
• | a decline in BankAtlantic Bancorp’s FHLB stock related to lower FHLB advance borrowings; | ||
• | an increase in BankAtlantic Bancorp’s loans held for sale associated with the transfer of commercial real estate loans into the held for sale classification; | ||
• | a decrease in BankAtlantic Bancorp’s loans receivable balances associated with $166 million of net-charge-offs, $61 million of loans transferred to real estate owned, $112 million of loan sales and repayments of loans in the ordinary course of business combined with a significant decline in loan originations and purchases; | ||
• | a decrease in current income tax receivables primarily resulting from the receipt of income tax refunds associated with recent tax law changes which extended the net operating loss carry-back period from two years to up to five years; | ||
• | a decrease in real estate inventory of $121.9 million at Core due to the relinquishment of title to substantially all of the land both in Florida and South Carolina to its lenders, and a decrease in real estate inventory reflecting a sale of $6.5 million at BankAtlantic, | ||
• | an increase in real estate owned associated with BankAtlantic Bancorp’s commercial real estate and residential loan foreclosures; | ||
• | a decrease in BankAtlantic Bancorp’s accrued interest receivables primarily resulting from tax certificate activities and lower loan balances partially offset by higher securities available for sale accrued interest receivable associated with the purchases of agency and municipal securities; | ||
• | a decrease in office properties and equipment resulting from BankAtlantic Bancorp’s depreciation and the transfer of BankAtlantic Bancorp’s $31.5 million of fixed assets to assets held for sale net of impairments in connection with its decision to seek a buyer for its Tampa branch network; | ||
• | additional decreases in properties and equipment due to an impairment charge of $3.9 million to an office building located in Fort Lauderdale, Florida and the transfer of Core’s irrigation facilities in settlement of its debt obligations in Florida and South Carolina; | ||
• | an increase in BankAtlantic Bancorp’s assets held for sale associated with cash and fixed assets transferred to held for sale upon the announcement that BankAtlantic intended to seek a buyer for its Tampa branches; and | ||
• | a decrease in assets held for sale from discontinued operations resulting from the sale of Core’s Projects in June 2010; |
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• | a decrease in BankAtlantic’s interest bearing deposit account balances associated with the transfer of $255.6 million of Tampa-based interest-bearing deposits to deposits held for sale and lower time deposits partially offset by higher interest bearing checking account balances reflecting the historically low interest rate environment during 2010; | ||
• | a decrease in BankAtlantic’s non-interest-bearing deposit balances primarily due to the transfer of $85.5 million of Tampa-based non-interest bearing deposits to held for sale and higher average balances per customer account; | ||
• | lower FHLB advances at BankAtlantic and short term borrowings due to repayments using proceeds from the loan repayments; | ||
• | a decrease in notes and mortgages notes payable and other borrowings at Core of approximately $112.3 million due to debt settlement agreements with its lenders to relinquish properties that serve as collateral for the debts and ownership interest in certain subsidiaries (see Notes 2 and 23 of the Notes to Consolidated Financial Statements), and a decrease in BankAtlantic Bancorp’s bonds payable associated with the repayment of a $0.7 million mortgage-backed bond; | ||
• | an increase in BankAtlantic Bancorp’s junior subordinated debentures liability due to interest deferrals; and | ||
• | a decrease in liabilities related to assets held for sale from discontinued operations resulting from the sale of Core’s Projects in June 2010. |
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December 31, | ||||||||
2010 | 2009 | |||||||
As Revised | ||||||||
BankAtlantic Bancorp | $ | 7,823 | 88,910 | |||||
Bluegreen | 44,362 | 42,731 | ||||||
Joint ventures | 26,071 | 27,671 | ||||||
$ | 78,256 | 159,312 | ||||||
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• | Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||
• | Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | ||
• | Level 3. Unobservable inputs, when there is little or no market data, which require the reporting entity to develop its own assumptions. |
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Activity | Revenue is recognized as: | |
Fee-based sales commissions | The sale transaction with the VOI purchaser is consummated in accordance with the terms of the agreement with the third-party developer and the related consumer rescission period has passed. | |
Resort Management and service fees | Management services are rendered.(1) | |
Resort title fees | Escrow amounts are released and title documents are completed. | |
Rental and sampler program | Guests complete stays at the resorts. Rental and sampler program proceeds are classified as a reduction to “cost of other resort and communities operations”. | |
Communities realty commissions | Sales of third-party-owned real estate are completed. | |
Golf course and ski hill daily fees | Services are provided. |
(1) | In connection with its management of the property owner’s associations, among other things, Bluegreen acts as agent for the property owner’s association to operate the respective resorts as provided under the management agreement. In certain cases, the personnel at the resort are Bluegreen employees. The property owners’ association bears all of the economic costs of such personnel and generally pays Bluegreen in advance of, or simultaneously to, the payment of payroll. In accordance with the accounting guidance for reporting revenues gross versus net, reimbursements from the property owners’ associations relating to direct pass-through costs are recorded net of the related expenses. |
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• | recent data observed in the market, including for similar assets, | ||
• | cash flow modeling based on projected cash flows and market discount rates, and | ||
• | estimated fair value of the underlying loan collateral. |
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Change | Change | |||||||||||||||||||
For the Years Ended December 31, | 2010 vs. | 2009 vs. | ||||||||||||||||||
2010 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
(As Revised) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Other revenues | $ | 1,781 | 1,296 | — | 485 | 1,296 | ||||||||||||||
1,781 | 1,296 | — | 485 | 1,296 | ||||||||||||||||
Cost and Expenses | ||||||||||||||||||||
Cost of sales of real estate | — | 7,749 | 59 | (7,749 | ) | 7,690 | ||||||||||||||
Interest expense, net | �� | 6,264 | 6,511 | 7,641 | (247 | ) | (1,130 | ) | ||||||||||||
Impairment of goodwill | — | 2,001 | — | (2,001 | ) | 2,001 | ||||||||||||||
Selling, general and administrative expenses | 25,602 | 30,388 | 36,886 | (4,786 | ) | (6,498 | ) | |||||||||||||
31,866 | 46,649 | 44,586 | (14,783 | ) | 2,063 | |||||||||||||||
Gain on bargain purchase of Bluegreen | — | 182,849 | — | (182,849 | ) | 182,849 | ||||||||||||||
(Loss) gain on settlement of investment in Woodbridge’s subsidiary | (977 | ) | 16,296 | — | (17,273 | ) | 16,296 | |||||||||||||
Equity in (loss) earnings from unconsolidated affiliates | (2,045 | ) | 32,276 | 8,844 | (34,321 | ) | 23,432 | |||||||||||||
Impairment of unconsolidated affiliates | — | (31,181 | ) | (96,579 | ) | 31,181 | 65,398 | |||||||||||||
Impairment of investments | — | (2,396 | ) | (15,548 | ) | 2,396 | 13,152 | |||||||||||||
Investment gains | — | 6,654 | 2,076 | (6,654 | ) | 4,578 | ||||||||||||||
Other income | 6,481 | 5,775 | 8,970 | 706 | (3,195 | ) | ||||||||||||||
(Loss) income from continuing operations before income taxes | (26,626 | ) | 164,920 | (136,823 | ) | (191,546 | ) | 301,743 | ||||||||||||
Less: Benefit for income taxes | (7,097 | ) | (35,503 | ) | (14,887 | ) | 28,406 | (20,616 | ) | |||||||||||
(Loss) income from continuing operations | (19,529 | ) | 200,423 | (121,936 | ) | (219,952 | ) | 322,359 | ||||||||||||
Extraordinary gain | — | — | 9,145 | — | (9,145 | ) | ||||||||||||||
Net (loss) income | $ | (19,529 | ) | 200,423 | (112,791 | ) | (219,952 | ) | 313,214 | |||||||||||
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Change | Change | |||||||||||||||||||
For the years ended December 31, | 2010 vs | 2009 vs | ||||||||||||||||||
2010 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
(As Revised) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales of real estate | $ | 2,739 | 6,605 | 13,752 | (3,866 | ) | (7,147 | ) | ||||||||||||
Other revenues | 1,397 | 2,312 | 3,033 | (915 | ) | (721 | ) | |||||||||||||
4,136 | 8,917 | 16,785 | (4,781 | ) | (7,868 | ) | ||||||||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of sales of real estate | 23,232 | 82,105 | 22,724 | (58,873 | ) | 59,381 | ||||||||||||||
Interest expense, net | 12,745 | 6,293 | 2,075 | 6,452 | 4,218 | |||||||||||||||
Selling, general and administrative expenses | 9,481 | 16,451 | 20,648 | (6,970 | ) | (4,197 | ) | |||||||||||||
Other expense | 3,889 | 5,433 | — | (1,544 | ) | 5,433 | ||||||||||||||
Total costs and expenses | 49,347 | 110,282 | 45,447 | (60,935 | ) | 64,835 | ||||||||||||||
Gain on extinguishment of debt | 13,049 | — | — | 13,049 | — | |||||||||||||||
Interest income and other income | 892 | 526 | 3,341 | 366 | (2,815 | ) | ||||||||||||||
Loss before income taxes | (31,270 | ) | (100,839 | ) | (25,321 | ) | 69,569 | (75,518 | ) | |||||||||||
(Provision) benefit for income taxes | — | — | — | — | — | |||||||||||||||
Loss from continuing operations, net of taxes | (31,270 | ) | (100,839 | ) | (25,321 | ) | 69,569 | (75,518 | ) | |||||||||||
Discontinued operations: | ||||||||||||||||||||
Net income (loss) from discontinued operations, net of taxes | 2,465 | (15,632 | ) | 2,783 | 18,097 | (18,415 | ) | |||||||||||||
Net loss | $ | (28,805 | ) | (116,471 | ) | (22,538 | ) | 87,666 | (93,933 | ) | ||||||||||
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Less than 12 | 13-36 | 37-60 | More than 60 | |||||||||||||||||
Category (1) | Total | months | Months | Months | Months | |||||||||||||||
Long Term Debt Obligations | $ | 160,861 | 64,654 | 503 | 10,652 | 85,052 | ||||||||||||||
Operating Lease Obligations | 342 | 251 | 72 | 19 | — | |||||||||||||||
Total Obligations | $ | 161,203 | 64,905 | 575 | 10,671 | 85,052 | ||||||||||||||
(1) | Long-term debt obligations consist of notes, mortgage notes and bonds payable and junior subordinated debentures. Operating lease obligations consist of lease commitments. The timing of contractual payments for debt obligations assumes the exercise of all extensions available at our sole discretion. Long-term debt obligations and long-term debt obligations include defaulted loans totaling approximately $64.4 million as of December 31, 2010 of which repayment of the outstanding debt was accelerated by the lender and is currently being shown as immediately due and payable in less than 12 months. See Note 2 of the “Notes to Consolidated Financial Statements” included in Item 8 of this report for more information regarding the defaulted loans. | |
(2) | These amounts represent scheduled principal payments. |
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• | Bluegreen generated “free cash flow” (cash flow from operating and investing activities) of $158.0 million. | ||
• | VOI system-wide sales, which include sales of third-party developer inventory, totaled $290.3 million. | ||
• | Bluegreen’s sales and marketing fee-based service business sold $78.8 million of third-party developer inventory and earned sales and marketing commissions of $53.0 million. Including Bluegreen’s resort management, resort title, construction management and other operations, Bluegreen’s total resort fee-based services revenues were $118.9 million in 2010. | ||
• | Bluegreen recorded a non-cash charge of $21.2 million to increase the allowance for loan losses on its VOI notes receivable generated prior to December 15, 2008 (the date Bluegreen implemented FICO®-score based credit underwriting standards), as Bluegreen now anticipates that lower FICO® receivables may experience higher losses later in their contractual term than originally estimated. | ||
• | Bluegreen Communities business generated a segment operating loss of $26.9 million. | ||
• | Bluegreen successfully completed the securitization of $162.3 million of VOI notes receivable. |
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Bluegreen Resorts | Bluegreen Communities | Total | ||||||||||||||||||||||
Percentage | Percentage | Percentage | ||||||||||||||||||||||
Amount | of Sale | Amount | of Sale | Amount | of Sale | |||||||||||||||||||
( in thousands, except percentage) | ||||||||||||||||||||||||
System-wide sales (1) | $ | 290,280 | 12,003 | 302,283 | ||||||||||||||||||||
Changes in sales deferred under timeshare accounting rules | 818 | — | 818 | |||||||||||||||||||||
Estimated uncollectible VOI notes receivable | (24,441 | ) | — | (24,441 | ) | |||||||||||||||||||
System-wide sales, net | 266,657 | 100 | % | 12,003 | 100 | % | 278,660 | 100 | % | |||||||||||||||
Less: Sales of third party VOIs | (78,805 | ) | -30 | % | — | — | (78,805 | ) | -28 | % | ||||||||||||||
Adjustment to allowance for loan losses | (21,228 | ) | -8 | % | — | — | (21,228 | ) | -8 | % | ||||||||||||||
Sales of real estate | 166,624 | 62 | %* | 12,003 | 100 | % | 178,627 | 64 | %* | |||||||||||||||
Cost of real estate sales | (19,862 | ) | -11 | %* | (23,552 | ) | -196 | % | (43,414 | ) | -22 | %* | ||||||||||||
Gross profit | 146,762 | 89 | % | (11,549 | ) | -96 | % | 135,213 | 78 | % | ||||||||||||||
Fee-based sales commission | 52,966 | 20 | % | — | — | 52,966 | 19 | % | ||||||||||||||||
Other resort fee-based services revenue | 65,979 | 25 | % | — | — | 65,979 | 24 | % | ||||||||||||||||
Other revenues | — | — | 1,696 | 14 | % | 1,696 | 1 | % | ||||||||||||||||
Cost of other operations | — | — | (3,514 | ) | -29 | % | (3,514 | ) | -1 | % | ||||||||||||||
Cost of other resort fee-based services | (46,863 | ) | -18 | % | — | — | (46,863 | ) | -17 | % | ||||||||||||||
Selling and marketing expenses | (139,770 | ) | -52 | % | (4,684 | ) | -39 | % | (144,454 | ) | -52 | % | ||||||||||||
Segment general and administrative expenses(2) | (15,341 | ) | -6 | % | (8,839 | ) | -74 | % | (24,180 | ) | -9 | % | ||||||||||||
Segment operating profit | $ | 63,733 | 24 | % | (26,890 | ) | -224 | % | 36,843 | 13 | % | |||||||||||||
* | Percentages for cost of real estate sales and gross profit are calculated as a percentage of sales of real estate. | |
(1) | Includes sales of VOI’s made on behalf of third parties, which are effected through the same process as the sale of Bluegreen’s vacation ownership inventory, and involve similar selling and marketing costs. | |
(2) | General and administrative expenses attributable to corporate overhead have been excluded from the tables. Corporate general and administrative expenses (excluding mortgage operations) totaled $42.5 million for the Bluegreen Interim Period. (See “Corporate General and Administrative Expenses” below for further discussion). |
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Bluegreen Resorts | Bluegreen Communities | Total | ||||||||||||||||||||||
Percentage | Percentage | Percentage | ||||||||||||||||||||||
Amount | of Sale | Amount | of Sale | Amount | of Sale | |||||||||||||||||||
( in thousands, except percentage) | ||||||||||||||||||||||||
(As Revised) | (As Revised) | |||||||||||||||||||||||
System-wide sales (1) | $ | 29,538 | 3,139 | 32,677 | ||||||||||||||||||||
Estimated uncollectible VOI notes receivable | (3,041 | ) | — | (3,041 | ) | |||||||||||||||||||
System-wide sales, net | 26,497 | 100 | % | 3,139 | 100 | % | 29,636 | 100 | % | |||||||||||||||
Less: Sales of third party VOIs | ||||||||||||||||||||||||
Adjustment to allowance for loan losses | (8,875 | ) | -33 | % | — | — | (8,875 | ) | -30 | % | ||||||||||||||
Sales of real estate | 17,622 | 67 | % | 3,139 | 100 | % | 20,761 | 70 | % | |||||||||||||||
Cost of real estate sales | (3,118 | ) | -18 | %* | (1,788 | ) | -57 | % | (4,906 | ) | -24 | %* | ||||||||||||
Gross profit | 14,504 | 82 | %* | 1,351 | 43 | % | 15,855 | 76 | %* | |||||||||||||||
Fee-based sales commission | 5,354 | 20 | % | — | — | 5,354 | 18 | % | ||||||||||||||||
Other resort fee-based services revenue | 5,239 | 20 | % | — | — | 5,239 | 18 | % | ||||||||||||||||
Other revenues | — | — | 593 | 19 | % | 593 | 2 | % | ||||||||||||||||
Cost of other operations | — | — | (1,480 | ) | -47 | % | (1,480 | ) | -5 | % | ||||||||||||||
Cost of other resort fee-based services | (3,538 | ) | -13 | % | — | — | (3,538 | ) | -12 | % | ||||||||||||||
Selling and marketing expenses | (14,334 | ) | -54 | % | (1,023 | ) | -33 | % | (15,357 | ) | -52 | % | ||||||||||||
Segment general and administrative expenses (2) | (1,441 | ) | -5 | % | (2,715 | ) | -86 | % | (4,156 | ) | -14 | % | ||||||||||||
Segment operating profit | $ | 5,784 | 22 | % | (3,274 | ) | -104 | % | 2,510 | 8 | % | |||||||||||||
* | Percentages for cost of real estate sales and gross profit are calculated as a percentage of sales of real estate. | |
(1) | Includes sales of VOI’s made on behalf of third parties, which are effected through the same process as the sale of Bluegreen’s vacation ownership inventory, and involve similar selling and marketing costs. | |
(2) | General and administrative expenses attributable to corporate overhead have been excluded from the tables. Corporate general and administrative expenses (excluding mortgage operations) totaled $4.0 million for the Bluegreen Interim Period. (See “Corporate General and Administrative Expenses” below for further discussion). |
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For the Year Ended | ||||||||
2010 | Interim Period | |||||||
Number of sales offices at period-end | 20 | 21 | ||||||
Number of Bluegreen VOI sales transactions | 18,504 | 1,625 | ||||||
Number of sales made on behalf of outside developers for a fee | 6,526 | 694 | ||||||
Total number of VOI sales transactions | 24,930 | 2,319 | ||||||
Average sales price per transaction | $ | 12,006 | 11,703 | |||||
Number of total prospectus tours | 160,281 | 16,140 | ||||||
Sale-to-tour conversion ratio — total prospects | 15.6 | % | 14.4 | % | ||||
Number of new prospects tours | 92,847 | 5,974 | ||||||
Sale-to-tour conversion ratio — new prospects | 10.6 | % | 10.9 | % |
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For the Year Ended | ||||||||
2010 | Interim Period | |||||||
Fee-based management services | $ | 24,756 | 2,725 | |||||
Title operations | 7,182 | 442 | ||||||
Net carrying cost of developer inventory | (8,561 | ) | (392 | ) | ||||
Other | (4,261 | ) | (313 | ) | ||||
Total | $ | 19,116 | 2,462 | |||||
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Year ended | ||||||||
December 31, | Interim | |||||||
2010 | Period | |||||||
Number of homesites sold | 239 | 50 | ||||||
Average sales price per homesite | $ | 61,071 | $ | 66,004 |
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For the Year Ended | ||||||||
2010 | Interim Period | |||||||
Interest income: | ||||||||
VOI notes receivable | $ | 93,425 | 10,169 | |||||
Retained interest on notes receivable sold | — | 2,027 | ||||||
Other | 189 | (14 | ) | |||||
Total interest income | 93,614 | 12,182 | ||||||
Servicing fee income | ||||||||
Fee-based services | 191 | — | ||||||
Total income | 93,805 | 12,182 | ||||||
Interest expense: | ||||||||
Receivable-backed notes payable | 42,289 | 5,328 | ||||||
Cost of mortgage servicing operations | 2,349 | — | ||||||
Total expense | 44,638 | 5,328 | ||||||
$ | 49,167 | 6,854 | ||||||
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Advance | ||||||||||||||||||||
Outstanding | Availability | Period | Borrowing | |||||||||||||||||
Balance | as of | Expiration; | Rate; Rate as | |||||||||||||||||
Borrowing | As of December | December 31, | Borrowing | of December | ||||||||||||||||
Limit | 31, 2010 | 2010 | Maturity | 31, 2010 | ||||||||||||||||
BB&T Purchase Facility(1) | $ | 75,000 | $ | — | $ | 75,000 | December 2011; September 2023 | Prime Rate +2.00%(2); 5.25%% | ||||||||||||
Quorum Facility | 20,000 | 108 | 19,892 | December 2011; December 2030 | 8.00% | |||||||||||||||
$ | 95,000 | $ | 108 | $ | 94,892 | |||||||||||||||
Outstanding | |||||||||||||||||||||
Balance | Availability | Advance Period | Borrowing Rate; | ||||||||||||||||||
As of | as of | Expiration; | Rate as of | ||||||||||||||||||
Borrowing | February 28, | February | Borrowing | February 28, | |||||||||||||||||
Limit | 2011 | 28, 2011 | Maturity | 2011 | |||||||||||||||||
BB&T Purchase Facility(1) | $ | 75,000 | $ | 1,026 | $ | 73,974 | December 2011; September 2023 | Prime Rate +2.00%(2); 5.25% | |||||||||||||
Quorum Facility | 20,000 | 706 | 19,294 | December 2011; December 2030 | 8.00% | ||||||||||||||||
NBA Receivables Facility(3) | 20,000 | 17,290 | 2,710 | June 2011; June 2018 | LIBOR+5.25%; 6.75%(5) | ||||||||||||||||
Liberty Bank Facility(4) | 60,000 | 46,978 | 13,022 | February 2013; February 2016 | Prime Rate +2.25%; 6.50%(6) | ||||||||||||||||
$ | 175,000 | $ | 66,000 | $ | 109,000 | ||||||||||||||||
(1) | Facility is revolving during the advance period, providing additional availability as the facility is paid down, subject to eligible collateral and applicable terms and conditions. | |
(2) | The borrowing rate is subject to tiered increases once the outstanding balance equals or exceeds $25.0 million, subject to a maximum interest rate of the Prime Rate plus 3.5%, once the facility equals or exceeds $50.0 million. |
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(3) | We have received a term sheet to amend our existing National Bank of Arizona (“NBA”) facility to allow us to pledge additional timeshare receivables up to the borrowing limit, with the additional advances not to exceed $5.0 million. There can be no assurances that we will close on this amendment on favorable terms, if at all. | |
(4) | In February of 2011, we revised the terms of and extended the revolving advance period of the Liberty Bank Facility with certain existing participants in the Liberty-led syndicate. In addition to the $ 47.0 million outstanding to the extending participants reflected in this table, an additional $ 17.4 million is outstanding as of February 28, 2011 to the other participants. This amount outstanding to the other participants does not reduce the availability under the extended Liberty Bank Facility. See Other Outstanding Receivable-Backed Notes Payable below for further information regarding the terms of this amendment and extension. | |
(5) | Interest charged on this facility is subject to a floor of 6.75% | |
(6) | Interest charged on this facility is subject to a floor of 6.50% |
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Balance as of | Borrowing Rate; | |||||||||||
December 31, | Borrowing | Rate as of December | ||||||||||
2010 | Maturity | 31, 2010 | ||||||||||
Liberty Bank Facility | $ | 67,514 | August 27, 2014 | Prime + 2.25%; 6.50 %(1) | ||||||||
GE Bluegreen/Big Cedar Facility | 23,877 | August 16, 2016 | 30 day LIBOR+1.75%; 2.01% | |||||||||
Legacy Securitization(2) | 22,960 | September 2, 2025 | 12%(2) | |||||||||
RFA Receivables Facility | 3,159 | February 15, 2015 | 30 day LIBOR+4.00%; 4.26% | |||||||||
NBA Receivable Facility | 18,351 | September 30, 2017 | 30 Day LIBOR + 5.25%; 6.75%(3) | |||||||||
Non-recourse Securitization Debt | 436,271 | Varies | Varies | |||||||||
$ | 572,132 | |||||||||||
(1) | Interest charged on this facility is subject to a floor of 6.50% | |
(2) | Legacy Securitization debt bears interest at a coupon rate of 12% and was issued at a discount resulting in an effective yield of 18.5%. The associated debt balance is presented net of the discount of $2.6 million. | |
(3) | Interest charged on this facility is subject to a floor of 6.75% |
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Balance as of | Borrowing Rate; | |||||||||||
December 31, | Borrowing | Rate as of | ||||||||||
2010 | Maturity(1) | December 31, 2010 | ||||||||||
RFA AD&C Facility | $ | 52,264 | Varies by loan(2) | 30 day LIBOR+4.50%;4.76% | ||||||||
H4BG Communities Facility | 30,842 | December 31, 2012 | Prime + 2.00%;8.00%(3) | |||||||||
Textron AD&C Facility | 9,290 | Varies by loan(2) | Prime + 1.25 - 1.50%;4.50%-4.75% | |||||||||
Wells Fargo Term Loan | 30,776 | April 30, 2012 | 30 day LIBOR + 6.87%;7.13% | |||||||||
$ | 123,172 | |||||||||||
(1) | Repayment of the outstanding amount is effected through release payments as the related collateral is sold, subject to periodic minimum required amortization between December 31, 2010 and maturity. | |
(2) | The maturity dates for this facility vary by loan as discussed below. | |
(3) | The interest rate on this facility is subject to the following floors: (1) 8.0% until the balance of the loan is less than or equal to $20 million, and (2) 6.0% thereafter. |
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Purchase | More | |||||||||||||||||||||||
Accounting | Less than | 13-36 | 37-60 | than 60 | ||||||||||||||||||||
Category | Total | Adjustments | 12 months | Months | Months | Months | ||||||||||||||||||
Long Term Debt Obligations(1) | $ | 768,001 | (56,877 | ) | 52,396 | 74,522 | 93,732 | 604,228 | ||||||||||||||||
Operating Lease Obligations | 58,390 | — | 9,379 | 12,986 | 9,819 | 26,206 | ||||||||||||||||||
Total Obligations | $ | 826,391 | (56,877 | ) | 61,775 | 87,508 | 103,551 | 630,434 | ||||||||||||||||
(1) | Contractual minimum principal payments for Legacy Securitization included in the Receivable-backed notes payable after 5 years balance is presented net of discount of $2.6 million. |
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(BankAtlantic Bancorp)
follows (in thousands):
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
BankAtlantic | $ | (115,910 | ) | (148,708 | ) | (166,144 | ) | |||||
Parent Company | (26,840 | ) | (40,812 | ) | (53,100 | ) | ||||||
Loss from continuing | ||||||||||||
operations | $ | (142,750 | ) | (189,520 | ) | (219,244 | ) | |||||
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(BankAtlantic Bancorp)
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(BankAtlantic Bancorp)
For the Years Ended | Change | Change | ||||||||||||||||||
December 31, | 2010 vs | 2009 vs | ||||||||||||||||||
2010 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
Net interest income | $ | 151,334 | 163,324 | 193,648 | (11,990 | ) | (30,324 | ) | ||||||||||||
Provision for loan losses | (138,825 | ) | (214,244 | ) | (135,383 | ) | 75,419 | (78,861 | ) | |||||||||||
Net interest income (expense) after provision for loan losses | 12,509 | (50,920 | ) | 58,265 | 63,429 | (109,185 | ) | |||||||||||||
Non-interest income | 105,762 | 129,292 | 137,308 | (23,530 | ) | (8,016 | ) | |||||||||||||
Non-interest expense | (236,315 | ) | (258,799 | ) | (330,623 | ) | 22,484 | 71,824 | ||||||||||||
BankAtlantic (loss) income before income taxes | (118,044 | ) | (180,427 | ) | (135,050 | ) | 62,383 | (45,377 | ) | |||||||||||
Benefit/(provision) for income taxes | 2,134 | 31,719 | (31,094 | ) | (29,585 | ) | 62,813 | |||||||||||||
BankAtlantic net loss | $ | (115,910 | ) | (148,708 | ) | (166,144 | ) | 32,798 | 17,436 | |||||||||||
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(BankAtlantic Bancorp)
The following table summarizes net interest income:
For the Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||||||||||||
(Dollars are in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||||||
Interest earning assets | ||||||||||||||||||||||||||||||||||||
Loans: (a) | ||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 1,392,600 | 68,392 | 4.91 | 1,758,188 | 89,836 | 5.11 | 2,053,645 | 111,691 | 5.44 | ||||||||||||||||||||||||||
Commercial real estate | 1,043,261 | 39,758 | 3.81 | 1,204,005 | 46,746 | 3.88 | 1,238,307 | 69,642 | 5.62 | |||||||||||||||||||||||||||
Consumer | 661,718 | 19,285 | 2.91 | 723,135 | 21,104 | 2.92 | 743,863 | 33,950 | 4.56 | |||||||||||||||||||||||||||
Commercial business | 135,669 | 9,036 | 6.66 | 143,224 | 7,461 | 5.21 | 132,565 | 9,516 | 7.18 | |||||||||||||||||||||||||||
Small business | 307,269 | 19,295 | 6.28 | 316,328 | 20,010 | 6.33 | 320,853 | 22,162 | 6.91 | |||||||||||||||||||||||||||
Total loans | 3,540,517 | 155,766 | 4.40 | 4,144,880 | 185,157 | 4.47 | 4,489,233 | 246,961 | 5.50 | |||||||||||||||||||||||||||
Investment securities (b) | 719,429 | 20,251 | 2.81 | 706,953 | 37,857 | 5.35 | 1,098,895 | 65,570 | 5.97 | |||||||||||||||||||||||||||
Federal funds sold | 2,303 | 7 | 0.30 | 14,760 | 33 | 0.22 | 44,031 | 754 | 1.71 | |||||||||||||||||||||||||||
Total investment securities | 721,732 | 20,258 | 2.81 | 721,713 | 37,890 | 5.25 | 1,142,926 | 66,324 | 5.80 | |||||||||||||||||||||||||||
Total interest earning assets | 4,262,249 | 176,024 | 4.13 | 4,866,593 | 223,047 | 4.58 | 5,632,159 | 313,285 | 5.56 | |||||||||||||||||||||||||||
Total non-interest earning assets | 296,336 | 319,520 | 482,322 | |||||||||||||||||||||||||||||||||
Total assets | $ | 4,558,585 | 5,186,113 | 6,114,481 | ||||||||||||||||||||||||||||||||
Interest bearing liabilities | ||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||
Savings | $ | 441,286 | 1,112 | 0.25 | 436,169 | 1,612 | 0.37 | 503,464 | 4,994 | 0.99 | ||||||||||||||||||||||||||
NOW, money funds and checking | 1,878,123 | 9,288 | 0.49 | 1,589,340 | 9,961 | 0.63 | 1,506,479 | 17,784 | 1.18 | |||||||||||||||||||||||||||
Certificate accounts | 758,000 | 12,111 | 1.60 | 1,192,012 | 30,311 | 2.54 | 1,088,170 | 41,485 | 3.81 | |||||||||||||||||||||||||||
Total interest bearing deposits | 3,077,409 | 22,511 | 0.73 | 3,217,521 | 41,884 | 1.30 | 3,098,113 | 64,263 | 2.07 | |||||||||||||||||||||||||||
Securities sold under agreements to repurchase and federal funds purchased | 35,056 | 46 | 0.13 | 108,248 | 237 | 0.22 | 141,654 | 2,699 | 1.91 | |||||||||||||||||||||||||||
Advances from FHLB | 107,455 | 1,209 | 1.13 | 553,146 | 16,522 | 2.99 | 1,417,718 | 50,942 | 3.59 | |||||||||||||||||||||||||||
Subordinated debentures and notes payable | 22,125 | 924 | 4.18 | 22,757 | 1,080 | 4.75 | 26,004 | 1,733 | 6.66 | |||||||||||||||||||||||||||
Total interest bearing liabilities | 3,242,045 | 24,690 | 0.76 | 3,901,672 | 59,723 | 1.53 | 4,683,489 | 119,637 | 2.55 | |||||||||||||||||||||||||||
Non-interest bearing liabilities | ||||||||||||||||||||||||||||||||||||
Demand deposit and escrow accounts | 903,122 | 809,900 | 828,825 | |||||||||||||||||||||||||||||||||
Other liabilities | 55,221 | 62,343 | 50,584 | |||||||||||||||||||||||||||||||||
Total non-interest bearing liabilities | 958,343 | 872,243 | 879,409 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 358,197 | 412,198 | 551,583 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,558,585 | 5,186,113 | 6,114,481 | ||||||||||||||||||||||||||||||||
Net interest income/net interest spread | 151,334 | 3.37 | 163,324 | 3.05 | 193,648 | 3.01 | ||||||||||||||||||||||||||||||
Net interest income | 151,334 | 163,324 | 193,648 | |||||||||||||||||||||||||||||||||
Margin | ||||||||||||||||||||||||||||||||||||
Interest income/interest earning assets | % | 4.13 | 4.58 | 5.56 | ||||||||||||||||||||||||||||||||
Interest expense/interest earning assets | 0.58 | 1.23 | 2.12 | |||||||||||||||||||||||||||||||||
Net interest margin | % | 3.55 | 3.35 | 3.44 | ||||||||||||||||||||||||||||||||
(a) | Includes non-accruing loans, and as such, the average yield on loans reflects the impact of these non-interest earning assets. | |
(b) | Average balances were based on amortized cost. |
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Year Ended | Year Ended | |||||||||||||||||||||||
December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
Compared to 2009 | Compared to 2009 | |||||||||||||||||||||||
Volume (a) | Rate | Total | Volume (a) | Rate | Total | |||||||||||||||||||
Increase (decrease) due to: | ||||||||||||||||||||||||
Loans | $ | (26,589 | ) | (2,802 | ) | (29,391 | ) | (15,383 | ) | (46,421 | ) | (61,804 | ) | |||||||||||
Taxable investment securities (b) | 351 | (17,957 | ) | (17,606 | ) | (20,988 | ) | (6,725 | ) | (27,713 | ) | |||||||||||||
Federal funds sold | (38 | ) | 12 | (26 | ) | (65 | ) | (656 | ) | (721 | ) | |||||||||||||
Total earning assets | (26,276 | ) | (20,747 | ) | (47,023 | ) | (36,436 | ) | (53,802 | ) | (90,238 | ) | ||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | 13 | (513 | ) | (500 | ) | (249 | ) | (3,133 | ) | (3,382 | ) | |||||||||||||
NOW, money funds, and checking | 1,428 | (2,101 | ) | (673 | ) | 519 | (8,342 | ) | (7,823 | ) | ||||||||||||||
Certificate accounts | (6,934 | ) | (11,266 | ) | (18,200 | ) | 2,641 | (13,815 | ) | (11,174 | ) | |||||||||||||
Total deposits | (5,493 | ) | (13,880 | ) | (19,373 | ) | 2,911 | (25,290 | ) | (22,379 | ) | |||||||||||||
Securities sold under agreements to repurchase | (96 | ) | (95 | ) | (191 | ) | (73 | ) | (2,389 | ) | (2,462 | ) | ||||||||||||
Advances from FHLB | (5,015 | ) | (10,298 | ) | (15,313 | ) | (25,824 | ) | (8,596 | ) | (34,420 | ) | ||||||||||||
Subordinated debentures | (26 | ) | (130 | ) | (156 | ) | (154 | ) | (499 | ) | (653 | ) | ||||||||||||
(5,137 | ) | (10,523 | ) | (15,660 | ) | (26,051 | ) | (11,484 | ) | (37,535 | ) | |||||||||||||
Total interest bearing liabilities | (10,630 | ) | (24,403 | ) | (35,033 | ) | (23,140 | ) | (36,774 | ) | (59,914 | ) | ||||||||||||
Change in tax equivalent interest income | $ | (15,646 | ) | 3,656 | (11,990 | ) | (13,296 | ) | (17,028 | ) | (30,324 | ) | ||||||||||||
(a) | Changes attributable to rate/volume have been allocated to volume. | |
(b) | Average balances were based on amortized cost. |
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For the Years Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Balance, beginning of period | $ | 173,588 | 125,572 | 94,020 | 43,602 | 41,192 | ||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial non-mortgage | (996 | ) | (516 | ) | — | — | — | |||||||||||||
Commercial real estate loans | (86,426 | ) | (96,300 | ) | (60,057 | ) | (12,562 | ) | (7,000 | ) | ||||||||||
Small business | (7,873 | ) | (9,105 | ) | (4,886 | ) | (2,554 | ) | (951 | ) | ||||||||||
Consumer loans | (39,483 | ) | (40,223 | ) | (28,942 | ) | (7,065 | ) | (681 | ) | ||||||||||
Residential real estate loans | (18,305 | ) | (23,264 | ) | (4,816 | ) | (461 | ) | (239 | ) | ||||||||||
Continuing loan products | (153,083 | ) | (169,408 | ) | (98,701 | ) | (22,642 | ) | (8,871 | ) | ||||||||||
Discontinued loan products | — | (13 | ) | — | — | (34 | ) | |||||||||||||
Total charge-offs | (153,083 | ) | (169,421 | ) | (98,701 | ) | (22,642 | ) | (8,905 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial non-mortgage | 98 | 492 | 7 | 96 | 291 | |||||||||||||||
Commercial real estate loans | 1,337 | 700 | — | 304 | 419 | |||||||||||||||
Small business | 626 | 494 | 428 | 417 | 566 | |||||||||||||||
Consumer loans | 1,011 | 561 | 365 | 578 | 536 | |||||||||||||||
Residential real estate loans | 1,166 | 912 | 397 | 15 | 348 | |||||||||||||||
Continuing loan products | 4,238 | 3,159 | 1,197 | 1,410 | 2,160 | |||||||||||||||
Discontinued loan products | 649 | 34 | 113 | 808 | 581 | |||||||||||||||
Total recoveries | 4,887 | 3,193 | 1,310 | 2,218 | 2,741 | |||||||||||||||
Net charge-offs | (148,196 | ) | (166,228 | ) | (97,391 | ) | (20,424 | ) | (6,164 | ) | ||||||||||
Provision for loan losses | 138,825 | 214,244 | 135,383 | 70,842 | 8,574 | |||||||||||||||
Transfer to held for sale | (2,908 | ) | ||||||||||||||||||
Transfer specific reserves to Parent Company | — | — | (6,440 | ) | — | — | ||||||||||||||
Balance, end of period | $ | 161,309 | 173,588 | 125,572 | 94,020 | 43,602 | ||||||||||||||
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As of December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accrual assets: | ||||||||||||||||||||
Tax certificates | $ | 3,636 | 2,161 | 1,441 | 2,094 | 632 | ||||||||||||||
Residential (1) | 86,538 | 76,401 | 34,734 | 8,678 | 2,629 | |||||||||||||||
Commercial real estate (2) | 243,299 | 167,867 | 161,947 | 165,818 | — | |||||||||||||||
Commercial non-mortgage | 16,123 | 18,063 | — | — | — | |||||||||||||||
Small business | 10,879 | 9,338 | 4,644 | 877 | 244 | |||||||||||||||
Consumer | 14,120 | 14,451 | 6,763 | 3,218 | 1,563 | |||||||||||||||
Total non-accrual assets (3) | 374,595 | 288,281 | 209,529 | 180,685 | 5,068 | |||||||||||||||
Repossessed assets: | ||||||||||||||||||||
Residential real estate | 16,418 | 9,607 | 2,285 | 413 | 617 | |||||||||||||||
Commercial real estate | 44,136 | 25,442 | 16,500 | 16,763 | 21,130 | |||||||||||||||
Small business real estate | 3,693 | 580 | 260 | — | — | |||||||||||||||
Consumer real estate | 81 | 306 | — | 40 | — | |||||||||||||||
Other repossessed assets | — | 10 | — | — | — | |||||||||||||||
Total repossessed assets | 64,328 | 35,945 | 19,045 | 17,216 | 21,747 | |||||||||||||||
Total non-performing assets | $ | 438,923 | 324,226 | 228,574 | 197,901 | 26,815 | ||||||||||||||
Total non-performing assets as a percentage of: | ||||||||||||||||||||
Total assets | 9.82 | 6.82 | 4.00 | 3.21 | 0.43 | |||||||||||||||
Loans, tax certificates and real estate owned | 13.08 | 8.13 | 4.95 | 4.10 | 0.55 | |||||||||||||||
TOTAL ASSETS | $ | 4,469,168 | 4,755,122 | 5,713,690 | 6,161,962 | 6,187,122 | ||||||||||||||
TOTAL LOANS, TAX CERTIFICATES AND NET REAL ESTATE OWNED | $ | 3,355,711 | 3,987,248 | 4,620,956 | 4,827,114 | 4,907,660 | ||||||||||||||
Allowance for loan losses | $ | 161,309 | 173,588 | 125,572 | 94,020 | 43,602 | ||||||||||||||
Tax certificates | $ | 89,789 | 110,991 | 213,534 | 188,401 | 199,090 | ||||||||||||||
Allowance for tax certificate losses | $ | 8,811 | 6,781 | 6,064 | 3,289 | 3,699 | ||||||||||||||
ACCRUING IMPAIRED LOANS | ||||||||||||||||||||
Contractually past due 90 days or more (4) | $ | — | 9,960 | 15,721 | — | — | ||||||||||||||
Performing impaired loans (5) | 11,880 | 6,150 | — | — | 163 | |||||||||||||||
Troubled debt restructured loans | 96,006 | 107,642 | 25,843 | 2,488 | — | |||||||||||||||
TOTAL ACCRUING IMPAIRED LOANS | $ | 107,886 | 123,752 | 41,564 | 2,488 | 163 | ||||||||||||||
(1) | Includes $38.9 million, $41.3 million and $20.8 million of interest-only residential loans as of December 31, 2010, 2009 and | |
2008, respectively. | ||
(2) | Excluded from the above table as of December 31, 2010, 2009 and 2008 were $14.5 million, $44.9 million and $79.3 million, respectively, of commercial residential loans that were transferred to a work-out subsidiary of the Parent Company in March 2008. | |
(3) | Includes $143.8 million, $45.7 million and $2.3 million of troubled debt restructured loans as of December 31, 2010, 2009 and 2008, respectively. | |
(4) | The majority of these loans had matured and the borrowers continue to make payments under the matured loan agreement or the loan had sufficient collateral to prevent a loss. | |
(5) | BankAtlantic believes that it will ultimately collect the principal and interest associated with these loans; however, the timing of the payments may not be in accordance with the contractual terms of the loan agreement. |
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As of December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Non-accrual | Accruing | Non-accrual | Accruing | Non-accrual | Accruing | |||||||||||||||||||
Commercial | $ | 130,783 | 70,990 | 32,225 | 83,767 | — | 25,843 | |||||||||||||||||
Small business | 2,990 | 9,401 | 4,520 | 7,325 | 2,289 | — | ||||||||||||||||||
Consumer | 3,070 | 12,638 | 1,774 | 12,969 | — | — | ||||||||||||||||||
Residential | 6,917 | 2,977 | 7,178 | 3,580 | — | — | ||||||||||||||||||
Total | $ | 143,760 | 96,006 | 45,697 | 107,641 | 2,289 | 25,843 | |||||||||||||||||
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Unpaid | ||||||||||||||||||||||||||||||||
Principal | Recorded | Specific | Date loan | Date Placed | Default | Collateral | Date of Last | |||||||||||||||||||||||||
Relationships | Balance | Investment | Reserves | Originated | on Nonaccrual | Date (3) | Type | Full Appraisal | ||||||||||||||||||||||||
Residential Land Developers | ||||||||||||||||||||||||||||||||
Relationship No. 1 (1) | $ | 41,233 | 16,858 | 358 | Q3-2004 | Q4-2008 | Q4-2008 | Land A&D (4) | Q4-2010 | |||||||||||||||||||||||
Commercial Land Developers | ||||||||||||||||||||||||||||||||
Relationship No. 2 | 14,000 | 14,000 | 6,975 | Q2-2005 | Q4-2010 | (2 | ) | Land A&D (4) | Q4-2009 | |||||||||||||||||||||||
Relationship No. 3 | 26,210 | 26,210 | 10,657 | Q1-1995 | Q4-2009 | Q4-2009 | Land A&D (4) | Q2-2010 | ||||||||||||||||||||||||
Relationship No. 4 | 17,777 | 17,777 | 8,634 | Q3-2006 | Q1-2010 | Q1-2010 | Commercial mixed-use | Q4-2010 | ||||||||||||||||||||||||
Total | 57,987 | 57,987 | 26,266 | |||||||||||||||||||||||||||||
Commercial Non-Residential Developers | ||||||||||||||||||||||||||||||||
Relationship No. 5 | 15,403 | 15,403 | 1,895 | Q3-2007 | Q4-2010 | (2 | ) | Construction 5+ | Q1-2010 | |||||||||||||||||||||||
Relationship No. 6 | 25,079 | 25,079 | 8,359 | Q3-2006 | Q2-2010 | (2 | ) | Self Storage | Q2-2010 | |||||||||||||||||||||||
Relationship No. 7 | 16,331 | 16,331 | 4,147 | Q1-2007 | Q3-2010 | (2 | ) | Shopping Center | Q4-2010 | |||||||||||||||||||||||
Total | 56,813 | 56,813 | 14,401 | |||||||||||||||||||||||||||||
Total of Large Relationships | 156,033 | 131,658 | 41,025 | |||||||||||||||||||||||||||||
(1) | During 2010 and 2009, BankAtlantic recognized partial charge-offs on relationship No. 1 of $14.6 million and $8.1 million. | |
(2) | A modification was executed, and the loan is reported as a troubled debt restructured loan, but is not in default as of December 31, 2010. | |
(3) | The default date is defined as the date of the initial missed payment prior to default. | |
(4) | Acquisition and development (“A&D”). |
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Amortizing Purchased Residential Loans | ||||||||||||||||||||||||||||||||
Year of | Unpaid | Recorded | LTV at | Current | FICO Scores | Current | Amount | Debt Ratios | ||||||||||||||||||||||||
Origination | Principal | Investment | Origination | LTV (1) | at Origination | FICO Scores (2) | Delinquent | at Origination (3) | ||||||||||||||||||||||||
2007 | $ | 42,249 | 40,916 | 65.04 | % | 115.05 | % | 741 | 740 | 6,273 | 33.32 | % | ||||||||||||||||||||
2006 | 49,081 | 47,887 | 70.79 | % | 122.31 | % | 736 | 721 | 5,709 | 35.83 | % | |||||||||||||||||||||
2005 | 67,760 | 64,927 | 73.88 | % | 116.24 | % | 725 | 714 | 11,851 | 35.83 | % | |||||||||||||||||||||
2004 | 294,404 | 292,274 | 68.39 | % | 82.97 | % | 733 | 726 | 23,025 | 34.79 | % | |||||||||||||||||||||
Prior to 2004 | 135,924 | 135,732 | 67.68 | % | 60.06 | % | 732 | 728 | 5,757 | 34.31 | % | |||||||||||||||||||||
Interest Only Purchased Residential Loans | ||||||||||||||||||||||||||||||||
Year of | Unpaid | Recorded | LTV at | Current | FICO Scores | Current | Amount | Debt Ratios | ||||||||||||||||||||||||
Origination | Principal | Investment | Origination | LTV (1) | at Origination | FICO Scores (2) | Delinquent | at Origination (3) | ||||||||||||||||||||||||
2007 | $ | 78,271 | 75,357 | 72.49 | % | 129.40 | % | 750 | 741 | 15,134 | 34.08 | % | ||||||||||||||||||||
2006 | 182,168 | 176,126 | 73.89 | % | 124.26 | % | 740 | 741 | 30,198 | 35.00 | % | |||||||||||||||||||||
2005 | 155,098 | 153,978 | 70.57 | % | 118.40 | % | 740 | 744 | 5,616 | 34.42 | % | |||||||||||||||||||||
2004 | 74,016 | 73,611 | 70.24 | % | 99.12 | % | 744 | 717 | 6,877 | 32.13 | % | |||||||||||||||||||||
Prior to 2004 | 71,174 | 71,174 | 58.42 | % | 80.59 | % | 742 | 733 | 2,197 | 31.90 | % | |||||||||||||||||||||
Amortizing Purchased Residential Loans | ||||||||||||||||||||||||||||||||
Unpaid | Recorded | LTV at | Current | FICO Scores | Current | Amount | Debt Ratios | |||||||||||||||||||||||||
State | Principal | Investment | Origination | LTV (1) | at Origination | FICO Scores (2) | Delinquent | at Origination (3) | ||||||||||||||||||||||||
Arizona | $ | 10,706 | 10,510 | 68.02 | % | 126.62 | % | 729 | 735 | 1,227 | 32.91 | % | ||||||||||||||||||||
California | 145,772 | 142,735 | 68.80 | % | 87.30 | % | 737 | 734 | 15,472 | 35.34 | % | |||||||||||||||||||||
Florida | 85,754 | 83,537 | 69.37 | % | 103.52 | % | 723 | 710 | 12,059 | 35.08 | % | |||||||||||||||||||||
Nevada | 6,585 | 6,585 | 71.29 | % | 116.93 | % | 743 | 734 | 570 | 36.62 | % | |||||||||||||||||||||
Other States | 354,626 | 352,387 | 68.50 | % | 82.71 | % | 733 | 731 | 23,762 | 34.11 | % | |||||||||||||||||||||
Interest Only Purchased Residential Loans | ||||||||||||||||||||||||||||||||
Unpaid | Recorded | LTV at | Current | FICO Scores | Current | Amount | Debt Ratios | |||||||||||||||||||||||||
State | Principal | Investment | Origination | LTV (1) | at Origination | FICO Scores (2) | Delinquent | at Origination (3) | ||||||||||||||||||||||||
Arizona | $ | 17,180 | 16,746 | 71.21 | % | 148.12 | % | 758 | 751 | 2,772 | 31.61 | % | ||||||||||||||||||||
California | 161,445 | 158,305 | 70.44 | % | 108.90 | % | 741 | 736 | 21,153 | 33.78 | % | |||||||||||||||||||||
Florida | 36,528 | 33,835 | 69.63 | % | 141.25 | % | 746 | 733 | 12,081 | 32.36 | % | |||||||||||||||||||||
Nevada | 8,727 | 7,291 | 74.66 | % | 197.75 | % | 741 | �� | 723 | 4,559 | 34.64 | % | ||||||||||||||||||||
Other States | 336,847 | 334,067 | 70.20 | % | 110.51 | % | 741 | 742 | 19,455 | 34.31 | % | |||||||||||||||||||||
(1) | Current loan-to-values (“LTV”) for the majority of the portfolio were obtained as of the first quarter of 2010 from automated valuation models. | |
(2) | Current FICO scores based on borrowers for which FICO scores were available as of the second quarter of 2010. | |
(3) | Debt ratio is defined as the portion of the borrower’s income that goes towards debt service. |
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December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||||||||||||||
ALL | Loans | ALL | Loans | ALL | Loans | |||||||||||||||||||||||||||||||
to gross | by | to gross | by | to gross | by | |||||||||||||||||||||||||||||||
ALL | loans | category | ALL | loans | category | ALL | loans | category | ||||||||||||||||||||||||||||
by | in each | to gross | by | in each | to gross | by | in each | to gross | ||||||||||||||||||||||||||||
category | category | loans | category | category | loans | category | category | loans | ||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 10,786 | 8.05 | % | 4.14 | % | 4,515 | 2.94 | % | 3.94 | % | 3,173 | 2.22 | % | 3.15 | % | ||||||||||||||||||||
Commercial real estate | 83,029 | 8.70 | 29.46 | 91,658 | 7.71 | 30.49 | 75,850 | 5.44 | 30.69 | |||||||||||||||||||||||||||
Small business | 11,514 | 3.80 | 9.35 | 7,998 | 2.56 | 8.02 | 8,133 | 2.49 | 7.20 | |||||||||||||||||||||||||||
Residential real estate | 23,937 | 1.96 | 37.80 | 27,000 | 1.74 | 39.85 | 6,034 | 0.31 | 42.56 | |||||||||||||||||||||||||||
Consumer | 32,043 | 5.14 | 19.25 | 42,417 | 6.14 | 17.70 | 32,382 | 4.35 | 16.40 | |||||||||||||||||||||||||||
$ | 161,309 | 4.98 | 100.00 | 173,588 | 4.45 | 100.00 | 125,572 | 2.76 | 100.00 | |||||||||||||||||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||||||||||||||
ALL | Loans | ALL | Loans | |||||||||||||||||||||
to gross | by | to gross | by | |||||||||||||||||||||
ALL | loans | category | ALL | loans | category | |||||||||||||||||||
by | in each | to gross | by | in each | to gross | |||||||||||||||||||
category | category | loans | category | category | loans | |||||||||||||||||||
Commercial non-mortgage | $ | 2,668 | 2.04 | % | 2.65 | % | 2,359 | 1.50 | % | 3.07 | % | |||||||||||||
Commercial real estate | 72,948 | 4.51 | 32.78 | 24,632 | 1.28 | 37.54 | ||||||||||||||||||
Small business | 4,576 | 1.44 | 6.43 | 4,495 | 1.58 | 5.57 | ||||||||||||||||||
Residential real estate | 4,177 | 0.19 | 43.82 | 4,242 | 0.20 | 42.33 | ||||||||||||||||||
Consumer | 9,651 | 1.37 | 14.32 | 7,874 | 1.34 | 11.49 | ||||||||||||||||||
$ | 94,020 | 1.90 | 100.00 | 43,602 | 0.85 | 100.00 | ||||||||||||||||||
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As of December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Commercial non-mortgage | $ | 9,020 | 174 | — | 594 | — | ||||||||||||||
Commercial real estate | 62,986 | 42,523 | 29,208 | 17,015 | — | |||||||||||||||
Small business | 2,936 | 753 | 300 | 200 | — | |||||||||||||||
Consumer | 1,791 | 4,621 | — | — | — | |||||||||||||||
Residential | 12,034 | 8,784 | — | — | — | |||||||||||||||
Total | $ | 88,767 | 56,855 | 29,508 | 17,809 | — | ||||||||||||||
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For the Years Ended | Change | Change | ||||||||||||||||||
December 31, | 2010 vs. | 2009 vs. | ||||||||||||||||||
2010 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
Service charges on deposits | $ | 59,844 | 75,739 | 93,905 | (15,895 | ) | (18,166 | ) | ||||||||||||
Other service charges and fees | 30,140 | 29,542 | 28,959 | 598 | 583 | |||||||||||||||
Securities activities, net | 2,864 | 11,161 | 2,395 | (8,297 | ) | 8,766 | ||||||||||||||
Income from unconsolidated subsidiaries | — | 479 | 1,509 | (479 | ) | (1,030 | ) | |||||||||||||
Gains on sales of loans | 259 | 467 | 265 | (208 | ) | 202 | ||||||||||||||
Other | 12,655 | 11,904 | 10,275 | 751 | 1,629 | |||||||||||||||
Non-interest income | $ | 105,762 | 129,292 | 137,308 | (23,530 | ) | (8,016 | ) | ||||||||||||
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For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Broker commissions | $ | 3,901 | 3,969 | 2,100 | ||||||||
Safe deposit box rental | 1,200 | 1,183 | 1,136 | |||||||||
Income from leases | 1,149 | 1,127 | 1,291 | |||||||||
Fee income | 1,997 | 1,868 | 1,946 | |||||||||
Other | 4,408 | 3,757 | 3,802 | |||||||||
Total other income | $ | 12,655 | 11,904 | 10,275 | ||||||||
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For the Years Ended | Change | Change | ||||||||||||||||||
December 31, | 2010 vs. | 2009 vs. | ||||||||||||||||||
2010 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
Employee compensation and benefits | $ | 91,131 | 103,209 | 125,851 | (12,078 | ) | (22,642 | ) | ||||||||||||
Occupancy and equipment | 53,585 | 58,574 | 64,774 | (4,989 | ) | (6,200 | ) | |||||||||||||
Advertising and promotion | 8,305 | 8,395 | 16,056 | (90 | ) | (7,661 | ) | |||||||||||||
Check losses | 2,421 | 4,188 | 8,767 | (1,767 | ) | (4,579 | ) | |||||||||||||
Professional fees | 17,365 | 12,574 | 10,979 | 4,791 | 1,595 | |||||||||||||||
Supplies and postage | 3,813 | 4,084 | 4,580 | (271 | ) | (496 | ) | |||||||||||||
Telecommunication | 2,513 | 2,464 | 4,430 | 49 | (1,966 | ) | ||||||||||||||
Provision for tax certificates | 4,552 | 3,388 | 7,286 | 1,164 | (3,898 | ) | ||||||||||||||
Loss on sale of real estate held for development and sale | 1,228 | — | 92 | 1,228 | (92 | ) | ||||||||||||||
Impairment of real estate held for development and sale | — | 3,871 | 1,169 | (3,871 | ) | 2,702 | ||||||||||||||
Cost associated with debt redemption | 60 | 7,463 | 1,238 | (7,403 | ) | 6,225 | ||||||||||||||
Lease termination costs | 3,601 | 2,156 | 199 | 1,445 | 1,957 | |||||||||||||||
Employee termination costs | 3,971 | 2,024 | 2,171 | 1,947 | (147 | ) | ||||||||||||||
Impairment of real estate held for sale | 2,604 | 1,158 | 4,758 | 1,446 | (3,600 | ) | ||||||||||||||
Impairment of real estate owned | 6,064 | 4,124 | 1,465 | 1,940 | 2,659 | |||||||||||||||
Impairment of assets held for sale | 4,469 | — | — | 4,469 | — | |||||||||||||||
Impairment of goodwill | — | 9,124 | 48,284 | (9,124 | ) | (39,160 | ) | |||||||||||||
FDIC special assessment | — | 2,428 | — | (2,428 | ) | 2,428 | ||||||||||||||
Gain (loss) on sale of real estate | 997 | (342 | ) | 124 | 1,339 | (466 | ) | |||||||||||||
Amortization of intangible assets | 1,248 | 1,303 | 1,359 | (55 | ) | (56 | ) | |||||||||||||
Other | 28,388 | 28,614 | 27,041 | (226 | ) | 1,573 | ||||||||||||||
Total non-interest expense | $ | 236,315 | 258,799 | 330,623 | (22,484 | ) | (71,824 | ) | ||||||||||||
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For the Years Ended | Change | Change | ||||||||||||||||||
December 31, | 2010 vs. | 2009 vs. | ||||||||||||||||||
($ in thousands) | 2010 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||
Loss before income taxes | $ | (118,044 | ) | (180,427 | ) | (135,050 | ) | 62,383 | (45,377 | ) | ||||||||||
Benefit/(provision) for income taxes | 2,134 | 31,719 | (31,094 | ) | (29,585 | ) | 62,813 | |||||||||||||
BankAtlantic net loss | $ | (115,910 | ) | (148,708 | ) | (166,144 | ) | 32,798 | 17,436 | |||||||||||
Effective tax rate | 1.81 | % | 17.58 | % | -23.02 | % | ||||||||||||||
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For the YearsEnded | Change | Change | ||||||||||||||||||
December 31, | 2010 vs. | 2009 vs. | ||||||||||||||||||
2010 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
Net interest income (expense): | ||||||||||||||||||||
Interest income on loans | $ | 228 | 352 | 261 | (124 | ) | 91 | |||||||||||||
Interest and dividend income on investments | 72 | 221 | 1,184 | (149 | ) | (963 | ) | |||||||||||||
Interest expense on junior subordinated debentures | (14,872 | ) | (15,535 | ) | (21,262 | ) | 663 | 5,727 | ||||||||||||
Net interest expense | (14,572 | ) | (14,962 | ) | (19,817 | ) | 390 | 4,855 | ||||||||||||
Provision for loan losses | (5,536 | ) | (18,414 | ) | (24,418 | ) | 12,878 | 6,004 | ||||||||||||
Net interest expense after Provision for loan losses | (20,108 | ) | (33,376 | ) | (44,235 | ) | 13,268 | 10,859 | ||||||||||||
Non-interest income: | ||||||||||||||||||||
Income from unconsolidated subsidiaries | 1,054 | 487 | 600 | 567 | (113 | ) | ||||||||||||||
Securities activities, net | — | 19 | (356 | ) | (19 | ) | 375 | |||||||||||||
Other income | 1,257 | 1,058 | 1,027 | 199 | 31 | |||||||||||||||
Non-interest income | 2,311 | 1,564 | 1,271 | 747 | 293 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Employee compensation and benefits | 2,819 | 5,036 | 3,046 | (2,217 | ) | 1,990 | ||||||||||||||
Professional fees | 3,074 | 2,055 | 1,782 | 1,019 | 273 | |||||||||||||||
Advertising and promotion | 293 | 251 | 279 | 42 | (28 | ) | ||||||||||||||
Other | 2,857 | 1,658 | 3,634 | 1,199 | (1,976 | ) | ||||||||||||||
Non-interest expense | 9,043 | 9,000 | 8,741 | 43 | 259 | |||||||||||||||
Loss before income taxes | (26,840 | ) | (40,812 | ) | (51,705 | ) | 13,972 | 10,893 | ||||||||||||
(Provision) benefit for income taxes | — | — | (1,395 | ) | — | 1,395 | ||||||||||||||
Parent Company loss | $ | (26,840 | ) | (40,812 | ) | (53,100 | ) | 13,972 | 12,288 | |||||||||||
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Amount | ||||
Nonaccrual loans: | ||||
Commercial residential real estate: | ||||
Builder land loans | $ | 32,039 | ||
Land acquisition and development | 19,809 | |||
Land acquisition, development and Construction | 34,915 | |||
Total commercial residential real estate | 86,763 | |||
Commercial non-residential real estate | 14,731 | |||
Total non-accrual loans | 101,494 | |||
Allowance for loan losses — specific reserves | (6,440 | ) | ||
Non-accrual loans, net | $ | 95,054 | ||
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
Non-accrual loans: | ||||||||
Commercial residential real estate: | ||||||||
Builder land loans | $ | 3,743 | 14,060 | |||||
Land acquisition and development | 3,605 | 10,376 | ||||||
Land acquisition, development and construction | 1,637 | 14,903 | ||||||
Total commercial residential real estate | 8,985 | 39,339 | ||||||
Commercial non-residential real estate | 5,523 | 5,558 | ||||||
Total non-accrual loans | 14,508 | 44,897 | ||||||
Allowance for loan losses — specific reserves | (830 | ) | (13,630 | ) | ||||
Non-accrual loans, net | 13,678 | 31,267 | ||||||
Performing commercial non-residential loans, net of allowance for loan losses | 2,811 | 3,116 | ||||||
Loans receivable, net | $ | 16,489 | 34,383 | |||||
Real estate owned | $ | 10,160 | 10,532 | |||||
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Unpaid | ||||||||||||||||||||||||||||||||
Principal | Outstanding | Specific | Date loan | Date Placed | Default | Collateral | Date of Last | |||||||||||||||||||||||||
Relationships | Balance | Balance | Reserves | Originated | on Nonaccrual | Date (3) | Type (4) | Full Appraisal | ||||||||||||||||||||||||
Commercial Business | ||||||||||||||||||||||||||||||||
Relationship No. 1 | 5,523 | 5,523 | 830 | Q4-2005 | Q4-2007 | Q4-2007 | Commercial Land | Q4-2010 | ||||||||||||||||||||||||
Residential Land Developers | ||||||||||||||||||||||||||||||||
Relationship No. 2 (1) | 19,881 | 3,743 | — | Q1-2005 | Q4-2007 | Q1-2008 | Builder Land | Q4-2010 | ||||||||||||||||||||||||
Relationship No. 3 (2) | 7,383 | 1,639 | Q1-2006 | Q1-2008 | Q1-2008 | Land A&D | Q2-2010 | |||||||||||||||||||||||||
Total Residential Land Developers | 27,264 | 5,382 | — | |||||||||||||||||||||||||||||
Total | 32,787 | 10,905 | 830 | |||||||||||||||||||||||||||||
(1) | During 2008, 2009 and 2010, the Parent Company recognized partial charge-offs on relationship No. 2 of $12.0 million, $1.7 million and $2.3 million, respectively. |
(2) | During 2010, the Parent Company recognized partial charge-offs on relationship No. 3 aggregating $5.7 million. |
(3) | The default date is defined as the date of the initial missed payment prior to default. |
(4) | Acquisition and development (“A&D”). |
For the Years | ||||||||
Ended December 31, | ||||||||
2010 | 2009 | |||||||
Balance, beginning of period | $ | 13,630 | 11,685 | |||||
Loans charged-off | (18,222 | ) | (16,469 | ) | ||||
Recoveries of loans previously charged-off | — | — | ||||||
Net (charge-offs) | (18,222 | ) | (16,469 | ) | ||||
Transfer to held for sale | (114 | ) | — | |||||
Provision for loan losses | 5,536 | 18,414 | ||||||
Balance, end of period | $ | 830 | 13,630 | |||||
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As of December 31, 2010 | ||||||||||||
Gross | ||||||||||||
Carrying | Unrealized | Estimated | ||||||||||
(in thousands) | Value | Depreciation | Fair Value | |||||||||
Cash and cash equivalents | $ | 12,226 | — | 12,226 | ||||||||
Securities available for sale | 10 | 2 | 8 | |||||||||
Private investment securities | 1,500 | — | 1,500 | |||||||||
Total | $ | 13,736 | 2 | 13,734 | ||||||||
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Outstanding at | ||||||||||||||||||||||||||||
December 31, | For the Period Ending December 31, | |||||||||||||||||||||||||||
2010 | 2011 | 2012-2013 | 2014-2018 | 2019-2023 | 2024-2028 | >2028 | ||||||||||||||||||||||
Commercial real estate | $ | 1,112,291 | 444,144 | 318,351 | 201,850 | 112,638 | 34,583 | 725 | ||||||||||||||||||||
Residential real estate | 1,222,194 | 18,336 | 3,797 | 48,285 | 147,424 | 18,723 | 985,629 | |||||||||||||||||||||
Consumer | 623,387 | 4,534 | 13,580 | 427,531 | 170,210 | 7,532 | — | |||||||||||||||||||||
Commercial business | 233,241 | 151,529 | 19,635 | 58,022 | 4,055 | — | — | |||||||||||||||||||||
Total loans | $ | 3,191,113 | 618,543 | 355,363 | 735,688 | 434,327 | 60,839 | 986,354 | ||||||||||||||||||||
Total securities available for sale (1) | $ | 423,071 | 180,317 | 61,873 | 565 | 27,299 | 28,849 | 124,168 | ||||||||||||||||||||
(1) | Does not include $1.3 million of equity securities. |
Commercial | Real Estate | |||||||||||
Business | Construction | Total | ||||||||||
One year or less | $ | 169,475 | 131,979 | 301,454 | ||||||||
Over one year, but less than five years | 60,094 | 11,738 | 71,832 | |||||||||
Over five years | 3,673 | 1,340 | 5,013 | |||||||||
$ | 233,242 | 145,057 | 378,299 | |||||||||
Due After One Year: | ||||||||||||
Pre-determined interest rate | $ | 62,928 | 10,529 | 73,457 | ||||||||
Floating or adjustable interest rate | 839 | 2,549 | 3,388 | |||||||||
$ | 63,767 | 13,078 | 76,845 | |||||||||
Florida | 64 | % | ||
Eastern U.S.A. | 19 | % | ||
Western U.S.A. | 14 | % | ||
Central U.S.A | 3 | % | ||
100 | % | |||
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Actual | ||||||||
Amount | Ratio | |||||||
At December 31, 2010: | ||||||||
Total risk-based capital | $ | 334,601 | 11.72 | % | ||||
Tier 1 risk-based capital | 276,362 | 9.68 | ||||||
Tangible capital | 276,362 | 6.22 | ||||||
Tier 1/Core capital | 276,362 | 6.22 | ||||||
At December 31, 2009: | ||||||||
Total risk-based capital | $ | 422,724 | 12.56 | % | ||||
Tier 1 risk-based capital | 357,660 | 10.63 | ||||||
Tangible capital | 357,660 | 7.58 | ||||||
Tier 1/Core capital | 357,660 | 7.58 |
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | 117,766 | 30,949 | 64,138 | ||||||||
Investing activities | 336,314 | 869,633 | 292,495 | |||||||||
Financing activities | (175,119 | ) | (824,742 | ) | (322,250 | ) | ||||||
Increase in cash and cash equivalents | $ | 278,961 | 75,840 | 34,383 | ||||||||
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Amount of Commitment Expiration Per Period | ||||||||||||||||||||
Total | ||||||||||||||||||||
Amounts | Less than | After 5 | ||||||||||||||||||
Commercial Commitments | Committed | 1 year | 1-3 years | 4-5 years | years | |||||||||||||||
Lines of credit | $ | 388,712 | 81,708 | — | — | 307,004 | ||||||||||||||
Standby letters of credit | 9,804 | 9,804 | — | — | — | |||||||||||||||
Other commercial commitments | 25,855 | 25,855 | — | — | — | |||||||||||||||
Total commercial commitments | $ | 424,371 | 117,367 | — | — | 307,004 | ||||||||||||||
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Payments Due by Period (2) | ||||||||||||||||||||
Less than | After 5 | |||||||||||||||||||
Contractual Obligations | Total | 1 year | 1-3 years | 4-5 years | years | |||||||||||||||
Time deposits | $ | 660,134 | 516,920 | 122,227 | 20,984 | 3 | ||||||||||||||
Long-term debt | 344,385 | — | 46,537 | 3,653 | 294,195 | |||||||||||||||
Advances from FHLB (1) | 170,000 | 170,000 | — | — | — | |||||||||||||||
Operating lease obligations held for sublease | 35,411 | 1,541 | 3,063 | 3,163 | 27,644 | |||||||||||||||
Operating Tampa lease obligations | 27,411 | 1,727 | 3,195 | 2,968 | 19,521 | |||||||||||||||
Operating lease obligations held for use | 32,943 | 5,388 | 8,841 | 4,973 | 13,741 | |||||||||||||||
Pension obligation | 18,443 | 1,496 | 3,155 | 3,545 | 10,247 | |||||||||||||||
Other obligations | 14,006 | 2,806 | 6,400 | 4,800 | — | |||||||||||||||
Total contractual cash obligations | $ | 1,302,733 | 699,878 | 193,418 | 44,086 | 365,351 | ||||||||||||||
(1) | Payments due by period are based on contractual maturities | |
(2) | The above table excludes interest payments on interest bearing liabilities |
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BankAtlantic Re-pricing Gap Table | ||||||||||||||||||||
As of December 31, 2010 | ||||||||||||||||||||
1 Year | 3 Years | 5 Years | More Than | |||||||||||||||||
or Less | or Less | or Less | 5 Years | Total | ||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Residential loans (1) | ||||||||||||||||||||
Fixed rate | $ | 111,266 | 75,170 | 44,668 | 176,672 | 407,776 | ||||||||||||||
Hybrids ARM less than 5 years | 11,358 | 6,262 | 243 | 108 | 17,971 | |||||||||||||||
Hybrids ARM more than 5 years | 364,823 | 235,574 | 130,028 | 68,833 | 799,258 | |||||||||||||||
Commercial loans | 789,029 | 159,673 | 67,379 | 27,518 | 1,043,599 | |||||||||||||||
Small business loans | 153,964 | 94,869 | 34,620 | 22,381 | 305,834 | |||||||||||||||
Consumer | 605,346 | 5,060 | 3,099 | 8,812 | 622,317 | |||||||||||||||
Total loans | 2,035,786 | 576,608 | 280,037 | 304,324 | 3,196,755 | |||||||||||||||
Investment securities | ||||||||||||||||||||
Mortgage backed securities | 45,331 | 41,248 | 20,027 | 64,647 | 171,253 | |||||||||||||||
Other investment securities | 329,457 | 1,734 | — | 9,807 | 340,998 | |||||||||||||||
Tax certificates | 89,789 | — | — | — | 89,789 | |||||||||||||||
Total investment securities | 464,577 | 42,982 | 20,027 | 74,454 | 602,040 | |||||||||||||||
Total interest earning assets | 2,500,363 | 619,590 | 300,064 | 378,778 | 3,798,795 | |||||||||||||||
Total non-earning assets | 669,718 | — | — | 655 | 670,373 | |||||||||||||||
Total assets | $ | 3,170,081 | 619,590 | 300,064 | 379,433 | 4,469,168 | ||||||||||||||
Total interest bearing liabilities | $ | 3,100,738 | 119,437 | 19,182 | 2,310 | 3,241,667 | ||||||||||||||
Non-interest bearing liabilities | 158,353 | 234,742 | 153,591 | 680,816 | 1,227,502 | |||||||||||||||
Total non-interest bearing liabilities and equity | $ | 3,259,091 | 354,179 | 172,773 | 683,126 | 4,469,169 | ||||||||||||||
GAP (repricing difference) | $ | (600,374 | ) | 500,154 | 280,883 | 376,469 | ||||||||||||||
Cumulative GAP | $ | (600,374 | ) | (100,220 | ) | 180,663 | 557,132 | |||||||||||||
Repricing Percentage | -13.43 | % | 11.19 | % | 6.28 | % | 8.42 | % | ||||||||||||
Cumulative Percentage | -13.43 | % | -2.24 | % | 4.04 | % | 12.47 | % | ||||||||||||
(1) | Hybrid adjustable rate mortgages (ARM) earn fixed rates for designated periods and adjust annually thereafter based on the one year U.S. Treasury note rate. |
Year Ending December 31, | Amount (1) | |||
2011 | $ | 52,146 | ||
2012 | 48,257 | |||
2013 | 96,267 | |||
2014 | 38,655 | |||
2015 | 123,507 | |||
Thereafter | 191,414 | |||
Total interest only loans | $ | 550,246 | ||
(1) | The above table assumes no prepayments. |
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i. | Calculating interest income and interest expense from existing assets and liabilities using current re-pricing, prepayment and volume assumptions, |
ii. | Estimating the change in expected net interest income based on instantaneous and parallel shifts in the yield curve to determine the effect on net interest income; and |
iii. | Calculating the percentage change in net interest income calculated in (i) and (ii). |
• | Interest rates, |
• | Loan prepayment rates, |
• | Deposit decay rates, |
• | Re-pricing of certain borrowings, and |
• | Reinvestment in earning assets. |
• | Fixed rate mortgages | 30 | % | |||||
• | Fixed rate securities | 26 | % | |||||
• | Tax certificates | 70 | % | |||||
• | Adjustable rate mortgages | 16 | % | |||||
• | Adjustable rate securities | 25 | % |
Within | 1-3 | 3-5 | Over 5 | |||||||||||||
1 Year | Years | Years | Years | |||||||||||||
Money fund savings accounts decay rates | 17 | % | 17 | % | 16 | % | 14 | % | ||||||||
NOW and savings accounts decay rates | 37 | % | 32 | % | 17 | % | 17 | % |
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As of December 31, 2010 | ||||||||
Net | ||||||||
Changes | Interest | Percent | ||||||
in Rate | Income | Change | ||||||
+200 bp | $ | 155,248 | 7.18 | % | ||||
+100 bp | 149,079 | 2.92 | % | |||||
0 | 144,845 | — | ||||||
-100 bp | 139,818 | -3.47 | % | |||||
-200 bp | 136,919 | -5.47 | % |
As of December 31, 2009 | ||||||||
Net | ||||||||
Changes | Interest | Percent | ||||||
in Rate | Income | Change | ||||||
+200 bp | $ | 166,800 | 1.93 | % | ||||
+100 bp | 164,645 | 0.62 | % | |||||
0 | 163,634 | — | ||||||
-100 bp | 164,519 | 0.54 | % | |||||
-200 bp | 162,552 | -0.66 | % |
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INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Financial Statements: |
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Miami, Florida
April 8, 2011
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(In thousands, except share data)
December 31, | ||||||||
2010 | 2009 | |||||||
(As Revised) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 178,868 | 189,728 | |||||
Interest bearing deposits in other banks | 455,538 | 126,352 | ||||||
Restricted cash ($41,243 held by variable interest entities (“VIE”) at December 31, 2010) | 62,249 | 24,020 | ||||||
Securities available for sale at fair value | 465,020 | 346,375 | ||||||
Investment securities at cost or amortized cost (fair value: $2,033 in 2010 and $9,654 in 2009) | 2,033 | 9,654 | ||||||
Current income tax receivable | 9,399 | 64,006 | ||||||
Tax certificates, net of allowance of $8,811 in 2010 and $6,781 in 2009 | 89,789 | 110,991 | ||||||
Federal Home Loan Bank (“FHLB”) stock, at cost which approximates fair value | 43,557 | 48,751 | ||||||
Loans held for sale | 29,765 | 4,547 | ||||||
Loans receivable, net of allowance for loan losses of $162,139 in 2010 and $187,218 in 2009 | 3,009,721 | 3,678,894 | ||||||
Notes receivable, including gross securitized notes of $533,343 at December 31, 2010, net of allowance of $93,398 in 2010 and $3,986 in 2009 | 574,969 | 279,645 | ||||||
Retained interest in notes receivable sold | — | 26,340 | ||||||
Accrued interest receivable | 22,010 | 32,279 | ||||||
Real estate inventory | 343,497 | 484,927 | ||||||
Real estate owned and other repossessed assets | 74,488 | 46,477 | ||||||
Investments in unconsolidated affiliates | 12,455 | 15,272 | ||||||
Properties and equipment, net | 218,665 | 289,209 | ||||||
Goodwill | 12,241 | 12,241 | ||||||
Intangible assets, net | 78,918 | 83,743 | ||||||
Assets held for sale | 37,334 | — | ||||||
Assets held for sale from discontinued operations | — | 71,900 | ||||||
Prepaid Federal Deposit Insurance Corporation (“FDIC”) deposit insurance assessment | 22,008 | 31,250 | ||||||
Other assets | 70,542 | 65,500 | ||||||
Total assets | $ | 5,813,066 | 6,042,101 | |||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Interest bearing deposits | $ | 2,758,032 | 3,133,360 | |||||
Non-interest bearing deposits | 792,012 | 815,458 | ||||||
Deposits held for sale | 341,146 | — | ||||||
Total deposits | 3,891,190 | 3,948,818 | ||||||
Advances from FHLB | 170,000 | 282,012 | ||||||
Securities sold under agreements to repurchase | 21,524 | 24,468 | ||||||
Other short term borrowings | 1,240 | 2,803 | ||||||
Receivable-backed notes payable, (including $459,030 held by VIE at December 31, 2010) | 569,214 | 237,416 | ||||||
Notes and mortgage notes payable and other borrowings | 239,571 | 395,361 | ||||||
Junior subordinated debentures | 461,568 | 447,211 | ||||||
Deferred income taxes | 28,663 | 25,205 | ||||||
Deferred gain on settlement of investment in subsidiary | 11,305 | — | ||||||
Liabilities related to assets held for sale | 87 | — | ||||||
Liabilities related to assets held for sale from discontinued operations | — | 76,351 | ||||||
Other liabilities | 186,547 | 187,032 | ||||||
Total liabilities | 5,580,909 | 5,626,677 | ||||||
Commitments and contingencies | ||||||||
Preferred stock of $.01 par value; authorized - 10,000,000 shares: | ||||||||
Redeemable 5% Cumulative Preferred Stock — $.01 par value; authorized 15,000 shares issued and outstanding 15,000 shares with redemption value of $1,000 per share | 11,029 | 11,029 | ||||||
Equity: | ||||||||
Class A common stock of $.01 par value, authorized 150,000,000 shares; issued and outstanding 68,521,497 in 2010 and 2009 | 685 | 685 | ||||||
Class B common stock of $.01 par value, authorized 20,000,000 shares; issued and outstanding 6,859,751 in 2010 and 6,854,251 in 2009 | 69 | 69 | ||||||
Additional paid-in capital | 230,748 | 227,934 | ||||||
(Accumulated deficit) retained earnings | (88,853 | ) | 18,166 | |||||
Accumulated other comprehensive income (loss) | 223 | (1,771 | ) | |||||
Total BFC Financial Corporation (“BFC”) shareholders’ equity | 142,872 | 245,083 | ||||||
Noncontrolling interests | 78,256 | 159,312 | ||||||
Total equity | 221,128 | 404,395 | ||||||
Total liabilities and equity | $ | 5,813,066 | 6,042,101 | |||||
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(In thousands, except per share data)
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(As Revised) | ||||||||||||
Revenues | ||||||||||||
Real Estate and Other: | ||||||||||||
Sales of real estate | $ | 181,366 | 27,406 | 13,837 | ||||||||
Other resorts and communities operations revenue | 67,675 | 5,832 | — | |||||||||
Other revenues | 55,826 | 8,859 | 3,033 | |||||||||
Interest income | 93,613 | 12,182 | — | |||||||||
398,480 | 54,279 | 16,870 | ||||||||||
Financial Services: | ||||||||||||
Interest income | 178,735 | 225,762 | 314,538 | |||||||||
Service charges on deposits | 59,844 | 75,739 | 93,905 | |||||||||
Other service charges and fees | 30,140 | 29,542 | 28,959 | |||||||||
Securities activities, net | 2,864 | 11,180 | 2,039 | |||||||||
Other non-interest income | 12,613 | 11,864 | 10,130 | |||||||||
284,196 | 354,087 | 449,571 | ||||||||||
Total revenues | 682,676 | 408,366 | 466,441 | |||||||||
Costs and Expenses | ||||||||||||
Real Estate and Other: | ||||||||||||
Cost of sales of real estate | 66,646 | 108,661 | 12,838 | |||||||||
Cost of sales of other resorts and communities operations | 50,377 | 5,018 | — | |||||||||
Interest expense, net of interest capitalized | 85,002 | 18,131 | 8,431 | |||||||||
Selling, general and administrative expenses | 245,865 | 67,035 | 55,201 | |||||||||
Impairment of goodwill | — | 2,001 | — | |||||||||
Other expenses | 3,889 | 6,449 | — | |||||||||
451,779 | 207,295 | 76,470 | ||||||||||
Financial Services: | ||||||||||||
Interest expense | 39,665 | 74,852 | 140,502 | |||||||||
Provision for loan losses | 144,361 | 232,658 | 159,801 | |||||||||
Employee compensation and benefits | 93,950 | 108,245 | 128,897 | |||||||||
Occupancy and equipment | 53,589 | 58,576 | 64,782 | |||||||||
Advertising and promotion | 8,598 | 8,646 | 16,335 | |||||||||
Check losses | 2,421 | 4,188 | 8,767 | |||||||||
Professional fees | 20,438 | 14,629 | 12,761 | |||||||||
Supplies and postage | 3,954 | 4,173 | 4,662 | |||||||||
Telecommunication | 2,533 | 2,481 | 4,452 | |||||||||
Cost associated with debt redemption | 60 | 7,463 | 1,238 | |||||||||
Provision for tax certificates | 4,552 | 3,388 | 7,286 | |||||||||
Lease termination costs | 3,601 | 2,156 | 199 | |||||||||
Employee termination costs | 3,971 | 2,024 | 2,171 | |||||||||
Impairment of assets held for sale | 4,469 | — | — | |||||||||
Impairment of goodwill | — | 8,541 | 46,564 | |||||||||
Impairment of real estate held for sale | 2,604 | 1,158 | 4,758 | |||||||||
Impairment of real estate owned | 6,830 | 4,124 | 1,465 | |||||||||
FDIC special assessment | — | 2,428 | — | |||||||||
FDIC deposit insurance assessment | 10,148 | 8,562 | 2,793 | |||||||||
Other expenses | 21,112 | 25,175 | 27,537 | |||||||||
426,856 | 573,467 | 634,970 | ||||||||||
Total costs and expenses | 878,635 | 780,762 | 711,440 | |||||||||
162
Table of Contents
(In thousands, except per share data)
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(As Revised) | ||||||||||||
Gain on bargain purchase of Bluegreen | $ | — | 182,849 | — | ||||||||
(Loss) gain on settlement of investment in Woodbridge’s subsidiary | (977 | ) | 29,679 | — | ||||||||
Gain on extinguishment of debt | 13,049 | — | — | |||||||||
Equity in (loss) earnings from unconsolidated affiliates | (851 | ) | 33,381 | 15,064 | ||||||||
Impairment of unconsolidated affiliates | — | (31,181 | ) | (96,579 | ) | |||||||
Impairment of investments | — | (2,396 | ) | (15,548 | ) | |||||||
Investment gains | — | 6,654 | 2,076 | |||||||||
Other income | 2,691 | 3,109 | 7,750 | |||||||||
Loss from continuing operations before income taxes | (182,047 | ) | (150,301 | ) | (332,236 | ) | ||||||
Less: Provision (benefit) for income taxes | 105 | (68,900 | ) | 15,763 | ||||||||
Loss from continuing operations | (182,152 | ) | (81,401 | ) | (347,999 | ) | ||||||
Income (loss) from discontinued operations | 1,965 | (11,931 | ) | 19,388 | ||||||||
Extraordinary gain | — | 9,145 | ||||||||||
Net loss | (180,187 | ) | (93,332 | ) | (319,466 | ) | ||||||
Less: Net loss attributable to noncontrolling interests | (76,339 | ) | (120,611 | ) | (260,567 | ) | ||||||
Net (loss) income attributable to BFC | (103,848 | ) | 27,279 | (58,899 | ) | |||||||
Preferred stock dividends | (750 | ) | (750 | ) | (750 | ) | ||||||
Net (loss) income allocable to common stock | $ | (104,598 | ) | 26,529 | (59,649 | ) | ||||||
Basic and Diluted (Loss) Earnings Per Common Share Attributable to BFC (Note 39): | ||||||||||||
Basic (Loss) Earnings Per Common Share | ||||||||||||
(Loss) earnings per share from continuing operations | $ | (1.42 | ) | 0.71 | (1.63 | ) | ||||||
Earnings (loss) per share from discontinued operations | 0.03 | (0.24 | ) | 0.11 | ||||||||
Earnings per share from extraordinary gain | — | 0.20 | ||||||||||
Net (loss) income per common share | $ | (1.39 | ) | 0.47 | (1.32 | ) | ||||||
Diluted (Loss) Earnings Per Common Share | ||||||||||||
(Loss) earnings per share from continuing operations | $ | (1.42 | ) | 0.71 | (1.63 | ) | ||||||
(Loss) earnings per share from discontinued operations | 0.03 | (0.24 | ) | 0.11 | ||||||||
Earnings per share from extraordinary gain | — | 0.20 | ||||||||||
Net (loss) income per common share | $ | (1.39 | ) | 0.47 | (1.32 | ) | ||||||
Basic weighted average number of common shares outstanding | 75,379 | 57,235 | 45,097 | |||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 75,379 | 57,235 | 45,097 | |||||||||
Amounts attributable to BFC common shareholders: | ||||||||||||
(Loss) income from continuing operations, net of tax | $ | (106,837 | ) | 40,391 | (73,752 | ) | ||||||
Income (loss) from discontinued operations, net of tax | 2,239 | (13,862 | ) | 4,958 | ||||||||
Extraordinary gain, net of tax | — | — | 9,145 | |||||||||
Net income (loss) | $ | (104,598 | ) | 26,529 | (59,649 | ) | ||||||
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(In thousands)
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(As Revised) | ||||||||||||
Net loss | $ | (180,187 | ) | (93,332 | ) | (319,466 | ) | |||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized gains (loss) on securities available for sale | 4,340 | 13,876 | (14,576 | ) | ||||||||
Provision (benefit) for income taxes | 1,310 | 555 | (6,647 | ) | ||||||||
Unrealized gains (loss) on securities available for sale, net of tax | 3,030 | 13,321 | (7,929 | ) | ||||||||
Net change from defined benefit plan | 1,655 | 7,765 | (13,911 | ) | ||||||||
Provision for income taxes | — | 2,222 | 2,112 | |||||||||
Net change from defined benefit plan, net of tax | 1,655 | 5,543 | (16,023 | ) | ||||||||
Unrealized losses associated with retained interests in notes receivables sold | — | (1,513 | ) | — | ||||||||
Benefit for income taxes | — | (588 | ) | — | ||||||||
Unrealized losses associated with retained interests in notes receivables sold, net of tax | — | (925 | ) | — | ||||||||
Unrealized gains (losses) associated with investment in unconsolidated affiliates | — | 29 | (2021 | ) | ||||||||
Benefit for income taxes | — | — | (184 | ) | ||||||||
Unrealized gains (losses) associated with investment in unconsolidated affiliates, net of tax | — | 29 | (1,837 | ) | ||||||||
Reclassification adjustments: | ||||||||||||
Realized net periodic pension (costs) income | (1,356 | ) | (2,005 | ) | 248 | |||||||
Net realized (gains) loss on securities available for sale | (3,296 | ) | (12,435 | ) | 10,502 | |||||||
Reclassification adjustments | (4,652 | ) | (14,440 | ) | 10,750 | |||||||
Other comprehensive income (loss), net of tax | 33 | 3,528 | (15,039 | ) | ||||||||
Comprehensive loss | (180,154 | ) | (89,804 | ) | (334,505 | ) | ||||||
Less: Comprehensive loss attributable to noncontrolling interest | (77,375 | ) | (117,610 | ) | (271,712 | ) | ||||||
Total comprehensive (loss) income attributable to BFC | $ | (102,779 | ) | 27,806 | (62,793 | ) | ||||||
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For each of the years in the three year period ended December 31, 2010
Accumulated | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
(Accumulated | Compre- | Total | Non- | |||||||||||||||||||||||||||||||||||||
Shares of Common | Class A | Class B | Additional | Deficit) | hensive | BFC | controlling | |||||||||||||||||||||||||||||||||
Stock Outstanding | Common | Common | Paid-in | Retained | Income | Shareholders’ | Interest in | Total | ||||||||||||||||||||||||||||||||
Class A | Class B | Stock | Stock | Capital | Earnings | (Loss) | Equity | Subsidiaries | Equity | |||||||||||||||||||||||||||||||
Balance, December 31, 2007 | 38,233 | 6,876 | 382 | 69 | 131,189 | 50,801 | 1,596 | 184,037 | 558,950 | 742,987 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (58,899 | ) | — | (58,899 | ) | (260,567 | ) | (319,466 | ) | ||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | — | — | (3,894 | ) | (3,894 | ) | (11,145 | ) | (15,039 | ) | ||||||||||||||||||||||||||
Issuance of restricted | ||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | 120 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Transfer of shares of Common Stock | 1 | (1 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Purchase and retirement of Class A Common Stock | (100 | ) | — | — | — | (54 | ) | — | — | (54 | ) | — | (54 | ) | ||||||||||||||||||||||||||
Net effect of subsidiaries’ capital transactions attributable to BFC, net of taxes | — | — | — | — | 2,398 | — | — | 2,398 | — | 2,398 | ||||||||||||||||||||||||||||||
Noncontrolling interests net effect of subsidiaries’ capital transactions | — | — | — | — | — | — | — | — | (24,684 | ) | (24,684 | ) | ||||||||||||||||||||||||||||
Cash dividends on 5% Preferred Stock | — | — | — | — | — | (750 | ) | — | (750 | ) | — | (750 | ) | |||||||||||||||||||||||||||
Re-classification of the 5% Preferred Stock | — | |||||||||||||||||||||||||||||||||||||||
to Redeemable Preferred stock | — | — | — | — | (11,029 | ) | — | — | (11,029 | ) | — | (11,029 | ) | |||||||||||||||||||||||||||
Share-based compensation related to stock options and restricted stock | — | — | — | — | 1,058 | — | — | 1,058 | — | 1,058 | ||||||||||||||||||||||||||||||
Balance, December 31, 2008 | 38,254 | 6,875 | 382 | 69 | 123,562 | (8,848 | ) | (2,298 | ) | 112,867 | 262,554 | 375,421 | ||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 27,279 | — | 27,279 | (120,611 | ) | (93,332 | ) | ||||||||||||||||||||||||||||
Noncontrolling interests from acquisitions | — | — | — | — | — | — | — | — | 71,344 | 71,344 | ||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | — | — | 527 | 527 | 3,001 | 3,528 | ||||||||||||||||||||||||||||||
Merger transaction (Note 3) | 30,246 | — | 303 | — | 94,676 | — | — | 94,979 | (99,583 | ) | (4,604 | ) | ||||||||||||||||||||||||||||
Transfer of shares of Common Stock | 21 | (21 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Pro rata share of the cumulative effect of accounting changes recognized by | ||||||||||||||||||||||||||||||||||||||||
Bluegreen on retained interests in notes receivable sold | — | — | — | — | — | 485 | — | 485 | 1,575 | 2,060 | ||||||||||||||||||||||||||||||
Net effect of subsidiaries’ capital transactions attributable to BFC | — | — | — | — | 8,333 | — | — | 8,333 | — | 8,333 | ||||||||||||||||||||||||||||||
Noncontrolling interest net effect of subsidiaries’ capital transactions | — | — | — | — | — | — | — | — | 41,032 | 41,032 | ||||||||||||||||||||||||||||||
Cash dividends on 5% Preferred Stock | — | — | — | — | — | (750 | ) | — | (750 | ) | — | (750 | ) | |||||||||||||||||||||||||||
Share-based compensation related to stock options and restricted stock | — | — | — | — | 1,363 | — | — | 1,363 | — | 1,363 | ||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2009 (As Revised) | 68,521 | 6,854 | $ | 685 | $ | 69 | $ | 227,934 | $ | 18,166 | $ | (1,771 | ) | $ | 245,083 | $ | 159,312 | $ | 404,395 | |||||||||||||||||||||
Cumulative effect of change | — | — | ||||||||||||||||||||||||||||||||||||||
in accounting principle (Note 5) | — | — | — | — | — | (2,421 | ) | 925 | (1,496 | ) | (1,073 | ) | (2,569 | ) | ||||||||||||||||||||||||||
Balance beginning of year, as adjusted | $ | 685 | $ | 69 | $ | 227,934 | $ | 15,745 | $ | (846 | ) | $ | 243,587 | $ | 158,239 | $ | 401,826 | |||||||||||||||||||||||
Net loss | — | — | — | — | — | (103,848 | ) | — | (103,848 | ) | (76,339 | ) | (180,187 | ) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | 1,069 | 1,069 | (1,036 | ) | 33 | |||||||||||||||||||||||||||||
Issuance of Class B Common Stock from exercise of options | — | 6 | — | — | 2 | — | — | 2 | — | 2 | ||||||||||||||||||||||||||||||
Net effect of subsidiaries’ capital transactions attributable to BFC | — | — | — | — | 1,760 | — | — | 1,760 | — | 1,760 | ||||||||||||||||||||||||||||||
Noncontrolling interest net effect of subsidiaries’ capital transactions | — | — | — | — | — | — | — | — | (2,608 | ) | (2,608 | ) | ||||||||||||||||||||||||||||
Cash dividends on 5% Preferred Stock | — | — | — | — | — | (750 | ) | — | (750 | ) | — | (750 | ) | |||||||||||||||||||||||||||
Share-based compensation related to stock options | — | — | — | — | 1,052 | — | — | 1,052 | — | 1,052 | ||||||||||||||||||||||||||||||
Balance, December 31, 2010 | 68,521 | 6,860 | $ | 685 | $ | 69 | $ | 230,748 | $ | (88,853 | ) | $ | 223 | $ | 142,872 | $ | 78,256 | $ | 221,128 | |||||||||||||||||||||
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Table of Contents
(In thousands)
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(As Revised) | ||||||||||||
Operating activities: | ||||||||||||
Net loss | $ | (180,187 | ) | (93,332 | ) | (319,466 | ) | |||||
Adjustment to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Extraordinary gain | — | — | (9,145 | ) | ||||||||
Discontinued operations attributable to noncontrolling interest | — | — | (12,144 | ) | ||||||||
Provision for loan valuation allowances, net | 155,743 | 240,169 | 168,552 | |||||||||
Provision for notes receivable allowances, net | 46,059 | 3,986 | — | |||||||||
Restructuring charges, impairments and exit activities | 14,645 | 9,209 | 8,564 | |||||||||
Realized gain on extinguishment of debt | (13,837 | ) | — | — | ||||||||
Depreciation, amortization and accretion, net | 7,447 | 24,016 | 28,389 | |||||||||
Share-based compensation expense | 5,082 | 4,724 | 3,821 | |||||||||
Securities activities, net | (2,864 | ) | (17,834 | ) | (4,116 | ) | ||||||
Net losses (gains) on sales of real estate owned, real estate, loans held for sale and office properties and equipment | 1,779 | (515 | ) | (2,448 | ) | |||||||
Net gain on sale of assets | (2,104 | ) | — | — | ||||||||
Stifel stock received as earn-out consideration pursuant to the Ryan Beck sales agreement | — | (8,589 | ) | (11,309 | ) | |||||||
Gain on bargain purchase of Bluegreen | — | (182,849 | ) | — | ||||||||
Loss (gain) on settlement of investment in Woodbridge’s subsidiary | 977 | (29,679 | ) | — | ||||||||
Originations of loans held for sale, net | (49,593 | ) | (74,764 | ) | (59,323 | ) | ||||||
Proceeds from sales of loans held for sale | 52,678 | 74,325 | 53,564 | |||||||||
Equity in loss (earnings) from unconsolidated affiliates | 851 | (33,339 | ) | (14,019 | ) | |||||||
Impairment of unconsolidated affiliates | — | 31,181 | 96,579 | |||||||||
Impairment of investments | — | 2,396 | 15,548 | |||||||||
Impairment of real estate inventory and long lived assets | 36,553 | 94,212 | 3,605 | |||||||||
Impairment of goodwill | — | 10,542 | 46,564 | |||||||||
Impairment of fixed assets | — | 20,698 | — | |||||||||
Deferred income tax (benefit) provision | (875 | ) | 869 | 50,260 | ||||||||
Decrease (increase) in income tax receivable | 23,825 | (66,386 | ) | — | ||||||||
Deferred interest on junior subordinated debentures | 14,051 | 14,139 | — | |||||||||
Interest accretion on retained interests in notes receivable sold | — | 2,065 | — | |||||||||
Net losses associated with debt redemption | 60 | 7,463 | 1,238 | |||||||||
Decrease (increase) in real estate inventory | 23,975 | (2,610 | ) | (8,582 | ) | |||||||
Increase in securities owned, net | — | (103 | ) | — | ||||||||
Decrease in accrued interest receivable | 10,269 | 9,538 | 4,454 | |||||||||
Decrease (increase) in other assets | 49,237 | (23,181 | ) | 15,584 | ||||||||
Decrease in notes receivable | 64,604 | 3,431 | — | |||||||||
Decrease in customer deposits | — | — | (123 | ) | ||||||||
Increase (decrease) in other liabilities | 11,027 | (13,259 | ) | (30,858 | ) | |||||||
Net cash provided by operating activities | 269,402 | 6,523 | 25,189 | |||||||||
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Consolidated Statements of Cash Flows
(In thousands)
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(As Revised) | ||||||||||||
Investing activities: | ||||||||||||
Proceeds from redemption and maturity of investment securities and tax certificates | $ | 118,471 | 228,522 | 349,397 | ||||||||
Purchase of time deposits in banks | (45,560 | ) | — | — | ||||||||
Purchase of investment securities and tax certificates | (102,118 | ) | (125,228 | ) | (377,983 | ) | ||||||
Purchase of securities available for sale | (393,610 | ) | (91,141 | ) | (288,241 | ) | ||||||
Proceeds from sales of securities available for sale | 93,361 | 341,426 | 395,771 | |||||||||
Proceeds from maturities of securities available for sale | 192,233 | 146,543 | 145,610 | |||||||||
Decrease (increase) in restricted cash | (2,545 | ) | 19,519 | (19,081 | ) | |||||||
Cash paid in settlement of Woodbridge subsidiary’s bankruptcy | — | (12,430 | ) | — | ||||||||
Purchases of FHLB stock | — | (2,295 | ) | (47,655 | ) | |||||||
Redemption of FHLB stock | 5,194 | 8,151 | 67,051 | |||||||||
Investments in unconsolidated affiliates | — | (1,629 | ) | (66 | ) | |||||||
Distributions from unconsolidated affiliates | 85 | 334 | 3,189 | |||||||||
Net repayments of loans | 382,759 | 351,811 | 23,285 | |||||||||
Proceeds from the sale of loans receivable | 59,697 | 14,483 | 10,100 | |||||||||
Improvements to real estate owned | (970 | ) | (1,373 | ) | (19 | ) | ||||||
Proceeds from sales of real estate owned | 26,924 | 6,073 | 3,810 | |||||||||
Proceeds from sales of property and equipment | 75,306 | 9,555 | 6,693 | |||||||||
Purchases of office property and equipment, net | (797 | ) | (5,121 | ) | (12,648 | ) | ||||||
Net cash outflows from the sale of central Florida stores | — | — | (4,491 | ) | ||||||||
Deconsolidation of Woodbridge’s subsidiary cash balance | (1,267 | ) | — | — | ||||||||
Net cash from consolidation of Bluegreen | — | 28,682 | — | |||||||||
Acquisition of Pizza Fusion | — | 3,000 | (3,000 | ) | ||||||||
Acquisition of BankAtlantic Bancorp Class A shares | — | — | (3,925 | ) | ||||||||
Net cash provided by investing activities | 407,163 | 918,882 | 247,797 | |||||||||
Financing activities: | ||||||||||||
Net (decrease) increase in deposits | (57,628 | ) | 29,022 | (3,482 | ) | |||||||
Prepayments of FHLB advances | (2,061 | ) | (1,159,463 | ) | (694,363 | ) | ||||||
Net (repayments) proceeds of FHLB advances | (110,000 | ) | 467,000 | 262,808 | ||||||||
Net decrease in securities sold under agreements to repurchase | (2,944 | ) | (16,919 | ) | (9,543 | ) | ||||||
Net decrease in short term borrowings | (1,563 | ) | — | — | ||||||||
Net (decrease) increase in federal funds purchased | — | (235,536 | ) | 129,364 | ||||||||
Prepayment of bonds payable | (661 | ) | — | (2,751 | ) | |||||||
Repayment of notes, mortgage notes and bonds payable | (408,747 | ) | (26,377 | ) | (32,055 | ) | ||||||
Proceeds from notes, mortgage notes and bonds payable | 198,503 | 10,576 | 27,522 | |||||||||
Payments for debt issuance costs | (7,066 | ) | (1,167 | ) | (518 | ) | ||||||
Proceeds from the exercise of stock options | 2 | — | — | |||||||||
Preferred stock dividends paid | (750 | ) | (750 | ) | (750 | ) | ||||||
Purchase and retirement of BFC Class A common stock | — | — | (54 | ) | ||||||||
Purchase and retirement of Woodbridge common stock | — | (13 | ) | (1,439 | ) | |||||||
Proceeds from the issuance of Pizza Fusion Class A common stock, net of issuance costs | 1,256 | — | — | |||||||||
Proceeds from issuance of BankAtlantic Bancorp Class A common stock from non-BFC shareholders | 4,601 | 45,563 | 103 | |||||||||
BankAtlantic Bancorp common stock dividends paid to non-BFC shareholders | — | (198 | ) | (636 | ) | |||||||
Distribution from non-controlling interest | (10,891 | ) | — | — | ||||||||
Distribution from venture partnership to minority holders | — | — | (410 | ) | ||||||||
Net cash used in financing activities | (397,949 | ) | (888,262 | ) | (326,204 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 278,616 | 37,143 | (53,218 | ) | ||||||||
Cash and cash equivalents at beginning of period | 316,080 | 278,937 | 332,155 | |||||||||
Cash and cash equivalents held for sale | (5,850 | ) | — | — | ||||||||
Cash and cash equivalents at end of period (a) | $ | 588,846 | 316,080 | 278,937 | ||||||||
(a) | Included in interest bearing deposits in other banks as of December 31, 2010 was $45.6 million of time deposit. These time deposits had original maturities of greater than 90 days and are not considered cash equivalents. |
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(In thousands)
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(As Revised) | ||||||||||||
Supplemental cash flow information: | ||||||||||||
Interest paid on borrowings and deposits | $ | 97,866 | 86,170 | 153,168 | ||||||||
Income taxes (refunded) paid | (59,306 | ) | (2,379 | ) | (44,100 | ) | ||||||
Supplementary disclosure of non-cash investing and financing activities: | ||||||||||||
Loans and tax certificates transferred to real estate owned | 61,276 | 35,914 | 7,208 | |||||||||
BFC and Woodbridge merger related transactions (see Note 3): | ||||||||||||
Increase in other liabilities | — | 4,604 | — | |||||||||
Increase in BFC’s Class A Common Stock | — | 303 | — | |||||||||
Increase in additional paid-in capital | — | 94,676 | — | |||||||||
Decrease in BFC’s non-controlling interest in Woodbridge | — | (99,583 | ) | — | ||||||||
Long-lived assets held-for-use transferred to assets held for sale | 2,842 | — | — | |||||||||
Long-lived assets held-for-sale transferred to assets held for use | 1,239 | — | — | |||||||||
Inventory acquired through financing | 13,200 | — | — | |||||||||
Securities purchased pending settlement | — | 2,018 | — | |||||||||
Decrease in additional paid in capital from the re-classification of the 5% Preferred Stock to Redeemable Preferred stock | — | — | 11,029 | |||||||||
Increase (decrease) in BFC accumulated other comprehensive income, net of taxes | 1,069 | 527 | (3,894 | ) | ||||||||
Net increase in BFC shareholders’ equity from the effect of subsidiaries’ capital transactions, net of taxes | 1,760 | 8,333 | 2,398 | |||||||||
Net decrease in equity resulting from cumulative effect of change in accounting principle (See Note 5) | (2,569 | ) | — | — | ||||||||
Net increase in shareholders’ equity resulting from the cumulative effect of accounting changes recognized by Bluegreen on retained interests in notes receivable sold | — | 485 | — | |||||||||
Transfers to assets held-for-sale: | ||||||||||||
Cash | 5,850 | — | — | |||||||||
Office properties and equipment | 31,484 | �� | — |
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Activity | Revenue is recognized as: | |
Fee-based sales commission | The sale transaction with the VOI purchaser was consummated in accordance with the terms of the agreement with the third party developer and the related consumer recession period has passed. | |
Resort Management and service fees | Management services are rendered.(1) | |
Resort title fees | Escrow amounts are released and title documents are completed. | |
Rental and Sampler program | Guests complete stays at the resorts. Rental and Sampler program proceeds are classified as a reduction to “Cost of other resort and communities operations”. | |
Communities realty commissions | Sales of third-party-owned real estate are completed. | |
Golf course and ski hill daily fees | Services are provided. |
(1) | In connection with its management of the property owner’s associations, among other things, Bluegreen acts as agent for the property owner’s association to operate the respective resorts as provided under the management agreements. In certain cases, the personnel at the resort are Bluegreen employees. The property owners’ association bears all of the economic costs of such personnel and generally pays Bluegreen in advance of, or simultaneously to, the payment of payroll. In accordance with the accounting guidance for reporting revenues gross versus net, reimbursements from the property owners’ associations relating to direct pass-through costs are recorded net of the related expenses. |
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(i) | incur, issue, renew or roll over any current lines of credit, guarantee the debt of any other entity or otherwise incur any additional debt, except as contemplated by BFC’s business plan or in connection with BankAtlantic’s compliance requirements applicable to it; | ||
(ii) | declare or make any dividends or other capital distributions other than dividends payable on BFC’s currently outstanding preferred stock of approximately $187,500 a quarter or | ||
(iii) | enter into any new agreements, contracts or arrangements or materially modify any existing agreements, contracts or arrangements with BankAtlantic not consistent with past practices. |
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Fair Value | ||||||||||||
(As Revised) | (As Previously Reported) | Hierarchy | ||||||||||
Cash and cash equivalents | $ | 51,621 | 51,621 | Level 1 | ||||||||
Restricted cash | 25,079 | 25,079 | Level 1 | |||||||||
Property and equipment | 83,083 | 83,083 | Level 3 | |||||||||
Management contracts | 63,000 | 63,000 | Level 3 | |||||||||
Real estate inventory (1) | 307,014 | 313,869 | Level 3 | |||||||||
Notes receivable | 285,000 | 285,000 | Level 3 | |||||||||
Retained interests in notes receivable sold | 29,250 | 29,250 | Level 3 | |||||||||
Other assets (2) | 44,440 | 40,983 | Level 3 | |||||||||
Fair value of assets | 888,487 | 891,885 | ||||||||||
Accounts payable and other liabilities (3) | 54,849 | 50,764 | Level 3 | |||||||||
Deferred income | 10,996 | 10,996 | Level 3 | |||||||||
Deferred income taxes (4) | 22,690 | 29,784 | Level 3 | |||||||||
Lines of credit and notes payable | 198,947 | 198,947 | Level 2 | |||||||||
Junior subordinated debentures | 56,783 | 56,783 | Level 2 | |||||||||
Receivable-backed notes payable | 236,359 | 236,359 | Level 2 | |||||||||
Fair value of liabilities | 580,624 | 583,633 | ||||||||||
Non-controlling interest (Big Cedar Joint Venture) | 26,100 | 26,200 | Level 3 | |||||||||
Net assets acquired | 281,763 | 282,052 | ||||||||||
Less: Cash consideration on acquisition of additional 23% | (22,939 | ) | (22,939 | ) | ||||||||
Less: Fair value of previously held equity interest | (25,126 | ) | (25,126 | ) | Level 1 | |||||||
Less: Fair value of non-controlling interest | (41,254 | ) | (41,254 | ) | Level 1 | |||||||
Less: Loss on previously held equity interest | (8,074 | ) | (8,074 | ) | ||||||||
Less: Loss on accumulated other comprehensive income attributable to previously held equity interest | (1,521 | ) | (1,521 | ) | ||||||||
Bargain purchase gain | $ | 182,849 | 183,138 | |||||||||
1) | A decrease of approximately $6.9 million to real estate inventory due to the finalization of the measurement period adjustments. | |
2) | An increase of $2.1 million of favourable lease contracts and a $1.4 million reclassification from real estate inventory to other assets due to the finalization of the measurement period adjustments. | |
3) | A reclassification from real estate inventory to accrued liabilities due to the finalization of the measurement period adjustments. | |
4) | A $2.9 million decrease due to the finalization of the measurement period adjustments, and a decrease of $4.2 million due to a correction of an error related to an impairment to real estate inventory which should have been included in the determination of deferred taxes as the acquisition date November 16, 2009, as part of the Bluegreen purchase price allocation. See Note 1 of the “Notes to the Consolidated Financial Statements”. |
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Consolidation | ||||||||||||||||||||
December 31, 2009 | Bluegreen’s QSPEs | BankAtlantic Bancorp’s Joint Venture (1) | Total | January 1, 2010 | ||||||||||||||||
(As Revised) | ||||||||||||||||||||
Restricted cash | $ | 24,020 | 36,518 | — | 36,518 | 60,538 | ||||||||||||||
Loans receivable | 3,678,894 | — | 3,214 | 3,214 | 3,682,108 | |||||||||||||||
Notes receivable | 279,645 | 377,265 | — | 377,265 | 656,910 | |||||||||||||||
Real estate inventory | 484,927 | 16,403 | — | 16,403 | 501,330 | |||||||||||||||
Retained interest in notes receivable sold | 26,340 | (26,340 | ) | — | (26,340 | ) | — | |||||||||||||
Investment in unconsolidated affiliates | 15,272 | — | (3,256 | ) | (3,256 | ) | 12,016 | |||||||||||||
Other assets | 65,500 | 9,970 | 367 | 10,337 | 75,837 | |||||||||||||||
Change in related assets | $ | 4,574,598 | 413,816 | 325 | 414,141 | 4,988,739 | ||||||||||||||
Other liabilities | $ | 187,032 | 3,544 | 18 | 3,562 | 190,594 | ||||||||||||||
Deferred income taxes | 25,205 | 1,779 | — | 1,779 | 26,984 | |||||||||||||||
Receivable -backed notes payable | 237,416 | 411,369 | — | 411,369 | 648,785 | |||||||||||||||
Change in related liabilities | $ | 449,653 | 416,692 | 18 | 416,710 | 866,363 | ||||||||||||||
Total BFC’s shareholders’ equity | $ | 245,083 | (1,496 | ) | — | (1,496 | ) | 243,587 | ||||||||||||
Noncontrolling interests | 159,312 | (1,380 | ) | 307 | (1,073 | ) | 158,239 | |||||||||||||
Total equity | $ | 404,395 | (2,876 | ) | 307 | (2,569 | ) | 401,826 | ||||||||||||
(1) | As a result of the adoption of the accounting guidance associated with the consolidation of VIEs, we consolidated BankAtlantic Bancorp’s factoring joint venture, BankAtlantic Business Capital, LLC (“BBC”). Prior to January 1, 2010, the investment in BBC was accounted for using the equity method of accounting. |
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December 31, | ||||||||
2010 | 2009 | |||||||
Restricted cash | $ | — | 538 | |||||
Property and equipment, net | — | 61,588 | ||||||
Other assets | — | 9,774 | ||||||
Assets held for sale | $ | — | 71,900 | |||||
Accounts payable, accrued liabilities and other | $ | — | 1,602 | |||||
Notes and mortgage payable | — | 74,749 | ||||||
Liabilities related to assets held for sale | $ | — | 76,351 | |||||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Revenue and other income | $ | 2,951 | 8,497 | 11,203 | ||||||||
Costs and expenses | 3,103 | 24,129 | 8,420 | |||||||||
(Loss) income before income taxes | (152 | ) | (15,632 | ) | 2,783 | |||||||
Gain on sale of discontinued operations | 2,617 | — | — | |||||||||
Income (loss) from discontinued operations | $ | 2,465 | (15,632 | ) | 2,783 | |||||||
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ASSETS | ||||
Cash and cash equivalents | $ | 5,850 | ||
Office properties and equipment | 31,484 | |||
Total assets held for sale | $ | 37,334 | ||
LIABILITIES | ||||
Interest bearing deposits | $ | 255,630 | ||
Non-interest bearing deposits | 85,516 | |||
Total deposits | 341,146 | |||
Accrued interest payable | 87 | |||
Total liabilities held for sale | $ | 341,233 | ||
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As of December 31, 2010 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Government agency securities: | ||||||||||||||||
Mortgage-backed securities | $ | 105,219 | 6,823 | — | 112,042 | |||||||||||
Agency bonds | 60,000 | 143 | — | 60,143 | ||||||||||||
Real estate mortgage investment conduits (1) | 66,034 | 2,807 | — | 68,841 | ||||||||||||
Total | 231,253 | 9,773 | — | 241,026 | ||||||||||||
Investment securities: | ||||||||||||||||
Municipal bonds | 162,113 | 33 | 23 | 162,123 | ||||||||||||
Other bonds | 19,936 | 8 | 22 | 19,922 | ||||||||||||
Benihana Convertible Preferred Stock | 16,426 | 4,680 | — | 21,106 | ||||||||||||
Equity and other securities | 20,634 | 188 | 3 | 20,819 | ||||||||||||
Total investment securities | 219,109 | 4,909 | 48 | 223,970 | ||||||||||||
Derivatives | 24 | — | — | 24 | ||||||||||||
Total | $ | 450,386 | 14,682 | 48 | 465,020 | |||||||||||
As of December 31, 2009 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Government agency securities: | ||||||||||||||||
Mortgage-backed securities | $ | 202,985 | 8,961 | 1 | 211,945 | |||||||||||
Real estate mortgage investment conduits (1) | 104,329 | 3,037 | 19 | 107,347 | ||||||||||||
Total mortgage-backed securities | 307,314 | 11,998 | 20 | 319,292 | ||||||||||||
Investment Securities: | ||||||||||||||||
Other bonds | 250 | — | — | 250 | ||||||||||||
Benihana Convertible Preferred Stock | 16,426 | 1,340 | — | 17,766 | ||||||||||||
Equity and other securities | 8,947 | 126 | 6 | 9,067 | ||||||||||||
Total investment securities | 25,623 | 1,466 | 6 | 27,083 | ||||||||||||
Total | $ | 332,937 | 13,464 | 26 | 346,375 | |||||||||||
(1) | Real estate mortgage investment conduits (“REMIC”) are pass-through entities that hold residential loans, and investors are issued ownership interests in the entities in the form of a bond. The securities were issued by government agencies. |
As of December 31, 2010 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Municipal Bonds | $ | 90,413 | (23 | ) | — | — | 90,413 | (23 | ) | |||||||||||||||
Taxable Securities | 15,155 | (22 | ) | — | — | 15,155 | (22 | ) | ||||||||||||||||
Equity securities | — | — | 7 | (3 | ) | 7 | (3 | ) | ||||||||||||||||
Total available for sale securities: | $ | 105,568 | (45 | ) | 7 | (3 | ) | 105,575 | (48 | ) | ||||||||||||||
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As of December 31, 2009 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Mortgage-backed securities | $ | — | — | 159 | (1 | ) | 159 | (1 | ) | |||||||||||||||
REMICS | — | — | 21,934 | (19 | ) | 21,934 | (19 | ) | ||||||||||||||||
Equity securities | 4 | (6 | ) | — | — | 4 | (6 | ) | ||||||||||||||||
Total available for sale securities: | $ | 4 | (6 | ) | 22,093 | (20 | ) | 22,097 | (26 | ) | ||||||||||||||
Debt Securities | ||||||||
Available for Sale | ||||||||
Estimated | ||||||||
Amortized | Fair | |||||||
December 31, 2010 (1) (2) | Cost | Value | ||||||
Due within one year | $ | 180,313 | 180,317 | |||||
Due after one year, but within five years | 61,832 | 61,971 | ||||||
Due after five years, but within ten years | 23,574 | 24,474 | ||||||
Due after ten years | 147,583 | 156,309 | ||||||
Total | $ | 413,302 | 423,071 | |||||
(1) | Scheduled maturities in the above table may vary significantly from actual maturities due to repayments. | |
(2) | Scheduled maturities are based upon contractual maturities. |
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Gross gains on securities sales | $ | 3,140 | 11,238 | 6,302 | ||||||||
Gross losses on securities sales | $ | — | — | (5,103 | ) | |||||||
Proceeds from sales of securities | $ | 58,846 | 303,825 | 375,900 | ||||||||
Other-than-temporary impairments | $ | — | (1,587 | ) | (3,413 | ) | ||||||
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Contract | Expiration | Strike | Fair | |||||||||||||
Amount | Date | Price | Premium | Value | ||||||||||||
€ | 400 | Jan-11 | 1.34 | 28 | 8 | |||||||||||
400 | Apr-11 | 1.34 | 31 | 16 | ||||||||||||
€ | 800 | $ | 59 | 24 | ||||||||||||
As of December 31, 2010 | As of December 31, 2009 | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value (1) | Cost | Value | |||||||||||||
Tax certificates | ||||||||||||||||
Net of allowance of $8,811 and $6,781, respectively | $ | 89,789 | 90,738 | 110,991 | 112,472 | |||||||||||
(1) | The estimated fair value was calculated at December 31, 2010 and 2009 using an expected cash flow model discounted at an interest rate that takes into account the risk of the cash flows of tax certificates relative to alternative investments. |
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Balance, beginning of period | $ | 6,781 | 6,064 | 3,289 | ||||||||
Charge-offs | (2,997 | ) | (2,965 | ) | (4,668 | ) | ||||||
Recoveries | 475 | 294 | 157 | |||||||||
Net charge-offs | (2,522 | ) | (2,671 | ) | (4,511 | ) | ||||||
Provision charged to non-interest expense | 4,552 | 3,388 | 7,286 | |||||||||
Balance, end of period | $ | 8,811 | 6,781 | 6,064 | ||||||||
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December 31, | ||||||||
2010 | 2009 | |||||||
Residential | $ | 1,213,736 | 1,538,906 | |||||
Commercial real estate: | ||||||||
Builder land loans | 9,920 | 57,807 | ||||||
Land acquisition and development | 119,189 | 182,235 | ||||||
Land acquisition, development and construction | 4,046 | 26,184 | ||||||
Construction and development | 141,535 | 211,809 | ||||||
Commercial | 620,140 | 688,386 | ||||||
Commercial non-real estate | 135,588 | 155,226 | ||||||
Small business: | ||||||||
Small business — real estate | 203,479 | 213,591 | ||||||
Small business — non-real estate | 99,190 | 99,113 | ||||||
Consumer: | ||||||||
Consumer — home equity | 604,228 | 669,690 | ||||||
Consumer other | 16,068 | 15,935 | ||||||
Deposit overdrafts | 3,091 | 4,816 | ||||||
Total gross loans | 3,170,210 | 3,863,698 | ||||||
Adjustments: | ||||||||
Premiums, discounts and net deferred fees | 1,650 | 2,414 | ||||||
Allowance for loan losses | (162,139 | ) | (187,218 | ) | ||||
Loans receivable — net | $ | 3,009,721 | 3,678,894 | |||||
Loans held for sale | $ | 29,765 | 4,547 | |||||
December 31, | ||||||||
2010 | 2009 | |||||||
Construction and development | $ | 22,522 | 43,432 | |||||
Commercial | 24,647 | 25,696 | ||||||
Total undisbursed loans in process | $ | 47,169 | 69,128 | |||||
Florida | 64 | % | ||
Eastern U.S.A. | 19 | % | ||
Western U.S.A. | 14 | % | ||
Central U.S.A | 3 | % | ||
100 | % | |||
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Recorded | ||||
Loan Class | Investment | |||
Commercial non-real estate | $ | 17,659 | ||
Commercial real estate: | ||||
Residential | 95,482 | |||
Land | 27,260 | |||
Owner occupied | 4,870 | |||
Other | 128,658 | |||
Small business: | ||||
Real estate | 8,928 | |||
Non-real estate | 1,951 | |||
Consumer | 14,120 | |||
Residential: | ||||
Interest only | 38,900 | |||
Amortizing | 47,639 | |||
Total nonaccrual loans | $ | 385,467 | ||
Total | ||||||||||||||||||||||||
31-59 Days | 60-89 Days | 90 Days | Total | Loans | ||||||||||||||||||||
Past Due | Past Due | or More (1) | Past Due | Current | Receivable (2) | |||||||||||||||||||
Commercial non-real estate | $ | — | — | 13,498 | 13,498 | 122,090 | 135,588 | |||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Residential | 4,700 | — | 53,791 | 58,491 | 84,325 | 142,816 | ||||||||||||||||||
Land | — | — | 23,803 | 23,803 | 34,237 | 58,040 | ||||||||||||||||||
Owner occupied | — | — | 3,862 | 3,862 | 107,235 | 111,097 | ||||||||||||||||||
Other | — | 6,043 | 54,940 | 60,983 | 551,472 | 612,455 | ||||||||||||||||||
Small business: | ||||||||||||||||||||||||
Real estate | 1,530 | 2,059 | 6,670 | 10,259 | 193,220 | 203,479 | ||||||||||||||||||
Non-real estate | — | 67 | 25 | 92 | 99,098 | 99,190 | ||||||||||||||||||
Consumer | 6,396 | 6,009 | 14,120 | 26,525 | 596,862 | 623,387 | ||||||||||||||||||
Residential: | ||||||||||||||||||||||||
Interest only | 4,907 | 6,164 | 38,900 | 49,971 | 500,275 | 550,246 | ||||||||||||||||||
Amortizing | 6,091 | 5,926 | 47,487 | 59,504 | 614,281 | 673,785 | ||||||||||||||||||
Total (1) | $ | 23,624 | 26,268 | 257,096 | 306,988 | 2,903,095 | 3,210,083 | |||||||||||||||||
(1) | BankAtlantic Bancorp had no loans greater than 90 days and accruing | |
(2) | Total loans receivable exclude purchase accounting of $8.5 million in connection with BFC’s share acquisitions of BankAtlantic Bancorp in 2008. The 2008 share acquisitions were accounted for as step acquisitions under the purchase method of accounting then in effect. |
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Commercial | ||||||||||||||||||||||||
Commercial | Real | Small | ||||||||||||||||||||||
Non-Real Estate | Estate | Business | Consumer | Residential | Total | |||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 4,515 | 105,288 | 7,998 | 42,417 | 27,000 | 187,218 | |||||||||||||||||
Charge-off : | (996 | ) | (104,973 | ) | (7,873 | ) | (39,483 | ) | (18,305 | ) | (171,630 | ) | ||||||||||||
Recoveries : | 716 | 1,661 | 626 | 1,042 | 1,166 | 5,211 | ||||||||||||||||||
Provision : | 6,551 | 84,904 | 10,763 | 28,067 | 14,076 | 144,361 | ||||||||||||||||||
Transfer to held for sale: | — | (3,021 | ) | — | — | — | (3,021 | ) | ||||||||||||||||
Ending balance | $ | 10,786 | 83,859 | 11,514 | 32,043 | 23,937 | 162,139 | |||||||||||||||||
Ending balance individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 9,020 | 62,985 | 2,936 | 1,791 | 12,034 | 88,766 | |||||||||||||||||
Ending balance collectively | ||||||||||||||||||||||||
evaluated for impairment | 1,766 | 20,874 | 8,578 | 30,252 | 11,903 | 73,373 | ||||||||||||||||||
Total | $ | 10,786 | 83,859 | 11,514 | 32,043 | 23,937 | 162,139 | |||||||||||||||||
Loans receivables: | ||||||||||||||||||||||||
Ending balance individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 16,667 | 342,806 | 12,763 | 23,905 | 88,210 | 484,351 | |||||||||||||||||
Ending balance collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 118,921 | 581,602 | 289,906 | 599,482 | 1,135,821 | 2,725,732 | |||||||||||||||||
Total (1) | $ | 135,588 | 924,408 | 302,669 | 623,387 | 1,224,031 | 3,210,083 | |||||||||||||||||
Purchases of loans | — | — | — | — | 6,511 | 6,511 | ||||||||||||||||||
Proceeds from loan sales | — | 59,697 | — | — | 52,678 | 112,375 | ||||||||||||||||||
Transfer to held for sale | — | 27,928 | — | — | — | 27,928 | ||||||||||||||||||
(1) | Total loans receivable exclude purchase accounting of $8.5 million in connection with BFC’s share acquisitions of BankAtlantic Bancorp in 2008. The 2008 share acquisitions were accounted for as step acquisitions under the purchase method of accounting then in effect. |
For Years Ended | ||||||||
December 31, | ||||||||
2009 | 2008 | |||||||
Balance, beginning of period | $ | 137,257 | 94,020 | |||||
Loans charged-off | (185,890 | ) | (117,874 | ) | ||||
Recoveries of loans previously charged-off | 3,193 | 1,310 | ||||||
Net charge-offs | (182,697 | ) | (116,564 | ) | ||||
Provision for loan losses | 232,658 | 159,801 | ||||||
Balance, end of period | $ | 187,218 | 137,257 | |||||
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Unpaid | Average | Interest | ||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | ||||||||||||||||
Investment (1) | Balance | Allowance | Investment | Recognized | ||||||||||||||||
With a related allowance recorded : | ||||||||||||||||||||
Commercial non-real estate | $ | 16,809 | 16,809 | 9,850 | 14,850 | — | ||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Residential | 81,731 | 87,739 | 21,298 | 86,868 | 778 | |||||||||||||||
Land | 15,209 | 15,209 | 8,156 | 21,010 | 18 | |||||||||||||||
Owner occupied | 1,695 | 1,695 | 335 | 5,366 | — | |||||||||||||||
Other | 95,693 | 96,873 | 33,197 | 96,800 | — | |||||||||||||||
Small business: | ||||||||||||||||||||
Real estate | 2,602 | 2,602 | 1,733 | 2,838 | 21 | |||||||||||||||
Non-real estate | 1,779 | 1,779 | 1,203 | 2,015 | — | |||||||||||||||
Consumer | 3,729 | 5,029 | 1,791 | 4,665 | — | |||||||||||||||
Residential: | ||||||||||||||||||||
Residential-interest only | 31,805 | 39,451 | 6,741 | 24,327 | 17 | |||||||||||||||
Residential-amortizing | 24,619 | 28,712 | 5,293 | 16,525 | 34 | |||||||||||||||
Total with a related allowance recorded | $ | 275,671 | 295,898 | 89,597 | 275,264 | 868 | ||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial non-real estate | $ | 1,497 | 1,497 | — | 4,799 | 15 | ||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Residential | 44,835 | 116,092 | — | 42,295 | 267 | |||||||||||||||
Land | 14,039 | 43,846 | — | 25,847 | 19 | |||||||||||||||
Owner occupied | 3,922 | 3,922 | — | 3,878 | 56 | |||||||||||||||
Other | 81,370 | 97,203 | — | 55,311 | 1,446 | |||||||||||||||
Small business: | ||||||||||||||||||||
Real estate | 15,727 | 16,499 | — | 14,722 | 673 | |||||||||||||||
Non-real estate | 172 | 197 | — | 358 | ||||||||||||||||
Consumer | 23,029 | 27,146 | — | 22,487 | 624 | |||||||||||||||
Residential: | ||||||||||||||||||||
Residential-interest only | 7,427 | 10,078 | — | 16,694 | — | |||||||||||||||
Residential-amortizing | 25,664 | 31,797 | — | 26,950 | 116 | |||||||||||||||
Total with no related allowance recorded | $ | 217,682 | 348,277 | — | 213,341 | 3,216 | ||||||||||||||
Commercial non-real estate | $ | 18,306 | 18,306 | 9,850 | 19,649 | 15 | ||||||||||||||
Commercial real estate | 338,494 | 462,579 | 62,986 | 337,375 | 2,584 | |||||||||||||||
Small business | 20,280 | 21,077 | 2,936 | 19,933 | 694 | |||||||||||||||
Consumer | 26,758 | 32,175 | 1,791 | 27,152 | 624 | |||||||||||||||
Residential | 89,515 | 110,038 | 12,034 | 84,496 | 167 | |||||||||||||||
Total | $ | 493,353 | 644,175 | 89,597 | 488,605 | 4,084 | ||||||||||||||
(1) | Recorded investment is defined as unpaid principal balance less charge downs |
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As of December 31, 2009 | As of December 31, 2008 | |||||||||||||||
Gross | Gross | |||||||||||||||
Recorded | Specific | Recorded | Specific | |||||||||||||
Investment | Allowances | Investment | Allowances | |||||||||||||
Impaired loans with specific valuation allowances | $ | 249,477 | 70,485 | 174,710 | 41,192 | |||||||||||
Impaired loans without specific valuation allowances | 196,018 | — | 138,548 | — | ||||||||||||
Total | $ | 445,495 | 70,485 | 313,258 | 41,192 | |||||||||||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Contracted interest income | $ | 23,221 | 22,417 | 14,276 | ||||||||
Interest income recognized | (4,084 | ) | (9,881 | ) | (3,368 | ) | ||||||
Foregone interest income | $ | 19,137 | 12,536 | 10,908 | ||||||||
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Commercial | Owner Occupied | Other | Small | Small | ||||||||||||||||||||||||
Non | Commercial | Commercial | Commercial | Commercial | Business | Business | ||||||||||||||||||||||
Real Estate | Residential | Land | Real Estate | Real Estate | Real Estate | Non-Real Estate | ||||||||||||||||||||||
Risk Grade: | ||||||||||||||||||||||||||||
Grades 1 to 7 | $ | 81,789 | 16,250 | 27,387 | 101,855 | 314,402 | 169,979 | 84,584 | ||||||||||||||||||||
Grade 10 | 12,827 | 7,572 | 956 | 704 | 119,508 | 3,098 | 3,665 | |||||||||||||||||||||
Grade 11 | 40,972 | 118,994 | 29,697 | 8,538 | 178,545 | 30,402 | 10,941 | |||||||||||||||||||||
Total | $ | 135,588 | 142,816 | 58,040 | 111,097 | 612,455 | 203,479 | 99,190 | ||||||||||||||||||||
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Residential | Residential | |||||||
Loan to value ratios (1) | Interest Only | Amortizing | ||||||
Ratios not available (2) | $ | — | 78,031 | |||||
=<60% | 107,063 | 144,744 | ||||||
60.1% — 70% | 118,679 | 103,891 | ||||||
70.1% — 80% | 290,840 | 309,925 | ||||||
80.1% — 90% | 17,055 | 23,982 | ||||||
>90.1% | 16,608 | 13,212 | ||||||
Total | $ | 550,245 | 673,785 | |||||
(1) | Current loan-to-values (“LTV”) for the majority of the portfolio were obtained as of the first quarter of 2010 based on automated valuation models. | |
(2) | Loans were originated under the Community Reinvestment Act program and are not monitored based on loan-to-value. |
Consumer | ||||
Home | ||||
Loan to value ratios | Equity | |||
<70% | $ | 363,653 | ||
70.1% — 80% | 106,180 | |||
80.1% — 90% | 72,529 | |||
90.1% — 100% | 48,537 | |||
>100% | 13,329 | |||
Total | $ | 604,228 | ||
As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Non-accrual — tax certificates | $ | 3,636 | 2,161 | 1,441 | ||||||||
Non-accrual — loans (1) | ||||||||||||
Residential | 86,538 | 76,401 | 34,734 | |||||||||
Commercial real estate and non-real estate | 273,930 | 230,827 | 241,274 | |||||||||
Small business | 10,879 | 9,338 | 4,644 | |||||||||
Consumer | 14,120 | 14,451 | 6,763 | |||||||||
Total non-accrual loans | 385,467 | 331,017 | 287,415 | |||||||||
Real estate owned | 74,488 | 46,467 | 19,045 | |||||||||
Other repossessed assets | — | 10 | — | |||||||||
Total non-performing assets | $ | 463,591 | 379,655 | 307,901 | ||||||||
(1) | Included in non-accrual loans at December 31, 2010, 2009 and 2008 were $145.3 million, $45.7 million and $4.8 million, respectively, of troubled debt restructured loans. |
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Performing impaired loans | $ | 11,880 | 6,150 | — | ||||||||
Loans 90 days past due and still accruing | — | 9,960 | 15,721 | |||||||||
Troubled debt restructured | 96,006 | 107,642 | 28,173 | |||||||||
Total accruing impaired loans | $ | 107,886 | 123,752 | 43,894 | ||||||||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Real estate acquired in settlement of loans and tax certificates: | ||||||||||||
Operating expenses, net | $ | 1,927 | 1,355 | 1,243 | ||||||||
Impairment of REO | 6,830 | 4,124 | 1,465 | |||||||||
Net losses (gains) on sales | 378 | (341 | ) | 124 | ||||||||
Net real estate owned losses | $ | 9,135 | 5,138 | 2,832 | ||||||||
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
As Revised | ||||||||
Notes receivable, gross | $ | 712,145 | 356,133 | |||||
Purchase accounting adjustments | (43,778 | ) | (72,502 | ) | ||||
Notes receivable, net of purchase accounting adjustments | 668,367 | 283,631 | ||||||
Allowance for loan losses | (93,398 | ) | (3,986 | ) | ||||
Notes receivable, net | $ | 574,969 | 279,645 | |||||
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Balance at December 31, 2009 | $ | 102,665 | ||
Increase in cash flows expected | — | |||
Accretion | (29,065 | ) | ||
Reclassifications from nonaccretable difference | 12,306 | |||
Balance at December 31, 2010 | $ | 85,906 | ||
As of December 31, 2010 | ||||
2011 | $ | 80,284 | ||
2012 | 82,129 | |||
2013 | 89,486 | |||
2014 | 95,928 | |||
2015 | 99,282 | |||
Thereafter | 265,036 | |||
712,145 | ||||
Allowance for loan losses | (93,398 | ) | ||
Notes receivable, net of allowance | 618,747 | |||
Purchase accounting adjustments | (43,778 | ) | ||
Total | $ | 574,969 | ||
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Balance at December 31, 2009 (a) | $ | 3,986 | ||
One-time impact of the amendment to the accounting guidance for transfer of financial assets and the amendment to the accounting guidance for the consolidation of VIE (see Note 5) | 86,252 | |||
Provision for loan losses | 46,059 | |||
Write-offs of uncollectible receivables | (42,899 | ) | ||
Balance at December 31, 2010 | $ | 93,398 | ||
(a) | Allowance for uncollectible notes receivable represents amount attributable to new loan originations subsequent to the date of our acquisition of a controlling interest in Bluegreen (November 16, 2009). |
2010 | 2009 | |||||||
Current | $ | 655,304 | $ | 326,218 | ||||
31-60 days | 12,063 | 6,633 | ||||||
61-90 days | 10,228 | 4,981 | ||||||
Over 91 days | 27,785 | 13,400 | ||||||
Purchase accounting adjustments | (43,778 | ) | (72,502 | ) | ||||
Notes receivable net of purchase accounting adjustments | 661,602 | 278,730 | ||||||
Allowance for loan losses | (93,398 | ) | (3,986 | ) | ||||
Total | $ | 568,204 | $ | 274,744 | ||||
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Gross Unrealized | ||||||||||||
Amortized Cost | Loss | Fair Value | ||||||||||
2004 Term Securitization | $ | 5,230 | $ | (300 | ) | $ | 4,930 | |||||
2004 GE Purchase Facility | 1,750 | (210 | ) | 1,540 | ||||||||
2005 Term Securitization | 5,410 | (570 | ) | 4,840 | ||||||||
2006 GE Purchase Facility | 5,020 | (850 | ) | 4,170 | ||||||||
2006 Term Securitization | 3,120 | (230 | ) | 2,890 | ||||||||
2007 Term Securitization | 6,020 | (460 | ) | 5,560 | ||||||||
2008 Term Securitization | 2,700 | (290 | ) | 2,410 | ||||||||
Total | $ | 29,250 | $ | (2,910 | ) | $ | 26,340 | |||||
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As of December 31, | ||||
2009 | ||||
Prepayment rates | 3.0% — 5.5 | % | ||
Loss severity rates | 57.0% — 38.0 | % | ||
Default rates | 16.5% — 1.2 | % | ||
Discount rates | 25.0 | % |
Hypothetical Fair Value at December 31, 2009 | ||||||||||||||||||||||||||||||||
Prepayment Rate | Loss Severity Rate | Default Rate | Discount Rate | |||||||||||||||||||||||||||||
Adverse Change Percentage | 10% | 20% | 10% | 20% | 10% | 20% | 10% | 20% | ||||||||||||||||||||||||
2004 Term Securitization | 4,930 | 4,930 | 4,720 | 4,510 | 4,690 | 4,450 | 4,700 | 4,480 | ||||||||||||||||||||||||
2004 GE Purchase Facility | 1,540 | 1,540 | 1,440 | 1,340 | 1,410 | 1,290 | 1,440 | 1,350 | ||||||||||||||||||||||||
2005 Term Securitization | 4,840 | 4,830 | 4,090 | 3,350 | 4,060 | 3,450 | 4,460 | 4,110 | ||||||||||||||||||||||||
2006 GE Purchase Facility | 4,150 | 4,120 | 3,430 | 2,750 | 3,340 | 2,620 | 3,810 | 3,490 | ||||||||||||||||||||||||
2006 Term Securitization | 2,890 | 2,890 | 2,170 | 1,490 | 2,480 | 2,090 | 2,650 | 2,430 | ||||||||||||||||||||||||
2007 Term Securitization | 5,560 | 5,560 | 4,130 | 2,800 | 4,650 | 3,790 | 5,080 | 4,640 | ||||||||||||||||||||||||
2008 Term Securitization | 2,390 | 2,370 | 1,870 | 1,480 | 1,750 | 1,210 | 2,260 | 2,120 |
Bluegreen Interim Period | ||||
Collections on previously sold receivables | $ | (16,623 | ) | |
Servicing fees received | 867 | |||
Resales of foreclosed assets | (1,405 | ) | ||
Remarketing fees received | 672 | |||
Cash received on retained interests in notes receivable sold | 5,572 |
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As of December 31, 2009 | ||||||||||||
Principal | ||||||||||||
Total Outstanding | Amount | |||||||||||
Principal | of Sold Loans | |||||||||||
Amount of | 60 or More | Balance Owed to | ||||||||||
Sold Loans | Days Past Due | Note Holders | ||||||||||
2004 Term Securitization | $ | 28,552 | $ | 869 | $ | 26,765 | ||||||
2004 GE Purchase Facility | 13,870 | 400 | 12,072 | |||||||||
2005 Term Securitization | 81,261 | 2,389 | 74,822 | |||||||||
2006 GE Purchase Facility | 69,003 | 2,353 | 61,433 | |||||||||
2006 Term Securitization | 71,450 | 2,502 | 66,206 | |||||||||
2007 Term Securitization | 137,645 | 4,251 | 123,935 | |||||||||
2008 Term Securitization | 51,810 | 1,530 | 46,136 | |||||||||
Total | $ | 453,591 | $ | 411,369 | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
As Revised | ||||||||
Land and land development costs | $ | 107,161 | 264,454 | |||||
Bluegreen Resorts | 230,346 | 212,662 | ||||||
Other costs | 554 | 552 | ||||||
Land and facilities held for sale | 5,436 | 7,259 | ||||||
Total | $ | 343,497 | 484,927 | |||||
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For the Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Real Estate and Other: | ||||||||||||
Interest incurred on borrowings | $ | 85,241 | 21,189 | 18,283 | ||||||||
Interest capitalized | (239 | ) | (3,058 | ) | (9,852 | ) | ||||||
85,002 | 18,131 | 8,431 | ||||||||||
Financial Services: | ||||||||||||
Interest on deposits | 22,511 | 41,884 | 64,263 | |||||||||
Interest on advances from FHLB | 1,209 | 16,523 | 50,942 | |||||||||
Interest on short term borrowings | 30 | 209 | 2,485 | |||||||||
Interest on debentures and bonds payable | 15,915 | 16,236 | 22,812 | |||||||||
39,665 | 74,852 | 140,502 | ||||||||||
Total interest expense | $ | 124,667 | 92,983 | 148,933 | ||||||||
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December 31, | ||||||||
2010 | 2009 | |||||||
Investments in joint ventures | $ | 281 | 4,265 | |||||
Investment in statutory business trusts | 12,174 | 11,007 | ||||||
$ | 12,455 | 15,272 | ||||||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Earnings from Bluegreen (1) | $ | — | 32,672 | 13,696 | ||||||||
Earnings (loss) from joint ventures | (2,045 | ) | (396 | ) | (152 | ) | ||||||
Earnings from statutory trusts | 1,194 | 1,105 | 1,520 | |||||||||
$ | (851 | ) | 33,381 | 15,064 | ||||||||
(1) | 2009 earnings from Bluegreen are for the interim period from January 1, 2009 to November 15, 2009. |
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2009 | 2008 | |||||||
Pro rata share of Bluegreen’s net loss | $ | 3,715 | (154 | ) | ||||
Amortization of basis difference (a) | 28,957 | 13,850 | ||||||
Total earnings from Bluegreen Corporation | $ | 32,672 | 13,696 | |||||
(a) | As a result of the impairment charges previously taken under the equity method prior to our consolidation of Bluegreen in November 2009, a basis difference was created between the investment in Bluegreen and the underlying assets and liabilities carried on the books of Bluegreen. Therefore, earnings from Bluegreen were adjusted each period to reflect the amortization of this basis difference. As such, a methodology was established to allocate the impairment loss to the relative estimates of the fair value of Bluegreen’s underlying assets based upon the position that the impairment loss was a reflection of the perceived value of these underlying assets. The appropriate amortization was calculated based on the estimated useful lives of the underlying assets and other relevant data associated with each asset category. |
December 31, | ||||||||
2010 | 2009 | |||||||
Land, buildings and building improvements | $ | 224,847 | 265,901 | |||||
Golf course land and improvements | 6,123 | 6,177 | ||||||
Office equipment, furniture and fixtures | 104,203 | 114,005 | ||||||
Water irrigation facilities | — | 10,223 | ||||||
Total | 335,173 | 396,306 | ||||||
Less accumulated depreciation | (116,508 | ) | (107,097 | ) | ||||
Properties and equipment — net | $ | 218,665 | 289,209 | |||||
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As of December 31, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||
Interest free checking | $ | 876,200 | 22.52 | % | 815,458 | 20.65 | % | |||||||||
Insured money fund savings | ||||||||||||||||
0.46% at December 31, 2010 | 385,365 | 9.90 | % | 351,303 | 8.90 | % | ||||||||||
0.68 at December 31, 2009 | ||||||||||||||||
NOW accounts | ||||||||||||||||
0.42% at December 31, 2010 | 1,516,781 | 38.98 | % | 1,409,138 | 35.69 | % | ||||||||||
0.63% at December 31, 2009 | ||||||||||||||||
Savings accounts | ||||||||||||||||
0.24% at December 31, 2010 | 452,710 | 11.63 | % | 412,360 | 10.44 | % | ||||||||||
0.33% at December 31, 2009 | ||||||||||||||||
Total non-certificate accounts | 3,231,056 | 83.04 | % | 2,988,259 | 75.67 | % | ||||||||||
Certificate accounts: | ||||||||||||||||
Less than 2.00% | 544,547 | 13.99 | % | 654,445 | 16.57 | % | ||||||||||
2.01% to 3.00% | 65,353 | 1.68 | % | 211,590 | 5.36 | % | ||||||||||
3.01% to 4.00% | 9,991 | 0.26 | % | 15,965 | 0.40 | % | ||||||||||
4.01% to 5.00% | 38,965 | 1.00 | % | 51,699 | 1.31 | % | ||||||||||
5.01% to 6.00% | 1,278 | 0.03 | % | 26,840 | 0.68 | % | ||||||||||
6.01% to 7.00% | — | — | 20 | — | ||||||||||||
Total certificate accounts | 660,134 | 16.96 | % | 960,559 | 24.33 | % | ||||||||||
Total deposit accounts | $ | 3,891,190 | 100.00 | % | 3,948,818 | 100.00 | % | |||||||||
As of December 31, 2010 | ||||||||
Amount | Percent | |||||||
Interest free checking | $ | 85,516 | 25.07 | % | ||||
Savings accounts | 34,406 | 10.09 | ||||||
NOW accounts | 146,213 | 42.86 | ||||||
Insured money fund savings | 31,331 | 9.18 | ||||||
Certificate accounts | 43,680 | 12.80 | ||||||
Total deposits held for sale | $ | 341,146 | 100.00 | % | ||||
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For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Money fund savings and NOW accounts | $ | 9,287 | 9,961 | 17,783 | ||||||||
Savings accounts | 1,112 | 1,612 | 4,994 | |||||||||
Certificate accounts — below $100,000 | 6,541 | 16,184 | 21,195 | |||||||||
Certificate accounts, $100,000 and above | 5,754 | 14,470 | 20,856 | |||||||||
Less early withdrawal penalty | (183 | ) | (343 | ) | (565 | ) | ||||||
Total | $ | 22,511 | 41,884 | 64,263 | ||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
Interest Rate | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | ||||||||||||||||||
0.00% to 2.00% | $ | 487,923 | 46,828 | 5,647 | 1,637 | 2,511 | 1 | |||||||||||||||||
2.01% to 3.00% | 18,774 | 26,861 | 5,439 | 4,605 | 9,674 | — | ||||||||||||||||||
3.01% to 4.00% | 3,059 | 2,264 | 2,113 | 1,563 | 990 | 2 | ||||||||||||||||||
4.01% to 5.00% | 6,297 | 25,973 | 6,691 | — | 4 | — | ||||||||||||||||||
5.01% to 6.00% | 867 | 411 | — | — | — | — | ||||||||||||||||||
Total | $ | 516,920 | 102,337 | 19,890 | 7,805 | 13,179 | 3 | |||||||||||||||||
December 31, | ||||
2010 | ||||
3 months or less | $ | 48,501 | ||
4 to 6 months | 52,233 | |||
7 to 12 months | 130,769 | |||
More than 12 months | 77,439 | |||
Total | $ | 308,942 | ||
2010 | 2009 | |||||||
Brokered deposits | $ | 14,065 | 72,904 | |||||
Public deposits | 214,421 | 223,554 | ||||||
Total institutional deposits | $ | 228,486 | 296,458 | |||||
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For the Years Ended December 31, | ||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||
Maximum borrowing at any month-end within the period | $ | 31,101 | 39,286 | 55,179 | ||||||||||||
Average borrowing during the period | $ | 22,009 | 30,732 | 63,529 | ||||||||||||
Average interest cost during the period | % | 0.12 | 0.12 | 2.23 | ||||||||||||
Average interest cost at end of the period | % | 0.13 | 0.12 | 0.12 |
Weighted | ||||||||||||||||
Estimated | Average | |||||||||||||||
Amortized | Fair | Repurchase | Interest | |||||||||||||
Cost | Value | Balance | Rate | |||||||||||||
December 31, 2010 (1) | ||||||||||||||||
Mortgage-backed securities | $ | 20,885 | 22,680 | 21,524 | 0.12 | % | ||||||||||
December 31, 2009 (1) | ||||||||||||||||
Mortgage-backed securities | $ | 32,706 | 34,403 | 24,468 | 0.12 | % | ||||||||||
(1) | At December 31, 2010 and 2009, all securities were classified as available for sale and were recorded at fair value in the consolidated statements of financial condition. |
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As of December 31, | ||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||
Ending balance | $ | 1,240 | 2,803 | 238,339 | ||||||||||||
Maximum outstanding at any month end within period | $ | 2,646 | 301,891 | 238,339 | ||||||||||||
Average amount outstanding during period | $ | 2,011 | 58,865 | 78,125 | ||||||||||||
Average cost during period | % | 0.02 | 0.29 | 2.23 |
Notes and | ||||||||||||||||||||
Mortgage Notes | Recourse | Non-recourse | Junior | |||||||||||||||||
Payable | Receivable Backed | Receivable Backed | Subordinated | |||||||||||||||||
and Lines of Credit | Notes Payable | Notes Payable | Debentures | Total | ||||||||||||||||
2011 (1) | 117,273 | — | — | — | 117,273 | |||||||||||||||
2012 | 92,525 | — | — | — | 92,525 | |||||||||||||||
2013 | 4,525 | — | — | 24,537 | 29,062 | |||||||||||||||
2014 | 11,094 | 67,313 | — | 3,653 | 82,060 | |||||||||||||||
2015 | 12,221 | 3,159 | 10,150 | — | 25,530 | |||||||||||||||
Thereafter | 2,291 | 65,188 | 426,121 | 490,074 | 983,674 | |||||||||||||||
239,929 | 135,660 | 436,271 | 518,264 | 1,330,124 | ||||||||||||||||
Purchase Accounting Adjustment | (358 | ) | — | (2,717 | ) | (56,696 | ) | (59,771 | ) | |||||||||||
239,571 | 135,660 | 433,554 | 461,568 | 1,270,353 | ||||||||||||||||
(1) | Includes loans that are currently in default and repayments of the entire amounts outstanding of approximately $64.4 million has been accelerated. Therefore, these notes are currently due. See below inNotes and Mortgage Notes Payable and Other Borrowingsfor further details. |
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December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
Principal Balance of | Principal Balance of | |||||||||||||||||||||||
Pledged/ | Pledged/ | |||||||||||||||||||||||
Debt | Interest | Secured | Debt | Interest | Secured | |||||||||||||||||||
Balance | Rate | Receivables | Balance | Rate | Receivables | |||||||||||||||||||
Recourse receivable-backed notes payable: | ||||||||||||||||||||||||
Liberty Bank Facility | $ | 67,514 | 6.50 | % | $ | 77,377 | $ | 59,055 | 5.75 | % | $ | 68,175 | ||||||||||||
GE Bluegreen/Big Cedar Receivables Facility | 23,877 | 2.01 | % | 29,232 | 32,834 | 1.98 | % | 35,935 | ||||||||||||||||
Legacy Securitization(1) | 22,759 | 12.00 | % | 34,232 | — | — | — | |||||||||||||||||
NBA Receivables Facility | 18,351 | 6.75 | % | 22,458 | — | — | — | |||||||||||||||||
Wells Fargo Facility | — | — | — | 14,409 | 4.00 | % | 15,926 | |||||||||||||||||
RFA Receivables Facility | 3,159 | 4.26 | % | 4,451 | 5,228 | 4.23 | % | 6,331 | ||||||||||||||||
Total recourse debt | $ | 135,660 | $ | 167,750 | $ | 111,526 | $ | 126,367 | ||||||||||||||||
Non-recourse receivable-backed notes payable (2): | ||||||||||||||||||||||||
BB&T Purchase Facility | $ | — | — | $ | — | $ | 131,302 | 5.75 | % | $ | 166,562 | |||||||||||||
GE 2003 Facility | 10,150 | 7.16 | % | 11,709 | — | — | — | |||||||||||||||||
2004 Term Securitization | 18,722 | 4.45-7.18 | % | 20,540 | — | — | — | |||||||||||||||||
2005 Term Securitization | 55,888 | 5.41-9.85 | % | 63,527 | — | — | — | |||||||||||||||||
GE 2006 Facility | 50,596 | 6.68-7.32 | % | 57,988 | — | — | — | |||||||||||||||||
2006 Term Securitization | 52,716 | 5.61-9.38 | % | 59,415 | — | — | — | |||||||||||||||||
2007 Term Securitization | 100,953 | 5.83-11.15 | % | 117,379 | — | — | — | |||||||||||||||||
2008 Term Securitization | 39,624 | 5.89-11.63 | % | 44,889 | — | — | — | |||||||||||||||||
2010 Term Securitization | 107,514 | 5.10-7.5 | % | 123,662 | — | — | — | |||||||||||||||||
Big Cedar Quorum General Credit Union | 108 | 8.00 | % | 136 | — | — | — | |||||||||||||||||
Total non-recourse debt | $ | 436,271 | $ | 499,245 | $ | 131,302 | $ | 166,562 | ||||||||||||||||
Purchase accounting adjustments | 2,717 | ) | (41,002 | ) | (5,412 | ) | (59,635 | ) | ||||||||||||||||
Total receivable- backed notes payable | $ | 569,214 | $ | 625,993 | $ | 237,416 | $ | 233,294 | ||||||||||||||||
(1) | Legacy Securitization debt bears interest at a coupon rate of 12% and was issued at a discount resulting in an effective yield of 18.5%. | |
(2) | As of December 31, 2009, with the exception of the BB&T Purchase Facility, all non-recourse receivable -backed notes payable were not consolidated in accordance with the accounting guidance then in effect. |
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December 31, | Interest | Maturity | ||||||||||||||
2010 | 2009 | Rate | Date | |||||||||||||
Core Communities | ||||||||||||||||
Land development | $ | — | 25,000 | 5.00 | % | February 2012 (5) | ||||||||||
Land acquisition | 27,248 | 22,536 | 3.04% — 3.19 | % | October 2019 (4) | |||||||||||
Land acquisition | — | 4,712 | 6.88 | % | October 2019 (5) | |||||||||||
Land acquisition | — | 85,968 | 2.74% — 3.06 | % | June 2011 (5) | |||||||||||
Development bonds | — | 181 | 6% to 6.13% | May 2035 | ||||||||||||
Other borrowings | — | 68 | 7.48 | % | August 2011 | |||||||||||
Carolina Oak | ||||||||||||||||
Borrowing base facility | 37,174 | 37,174 | 3.25 | % | March 2011 (4) | |||||||||||
Cypress Creek Holdings | ||||||||||||||||
Mortgage notes payable | 11,387 | 11,607 | 5.47 | % | April 2015 | |||||||||||
Other borrowings | — | 102 | 6.50 | % | June 2013 | |||||||||||
Bluegreen | ||||||||||||||||
The RFA AD&C Facility | 52,264 | 87,415 | 4.76 | % | June 2012 | |||||||||||
H4BG Communities Facility | 30,842 | 38,479 | 8.0% — 10.0 | % | December 2012 | |||||||||||
Wachovia Notes Payable | — | 24,497 | 2.23% — 2.58 | % | Varies by loan | |||||||||||
Wells Fargo Term Loan | 30,776 | 0 | 7.13 | % | April 30, 2012 | |||||||||||
Wachovia Line-of-Credit | — | 15,700 | 1.98 | % | April 2010 | |||||||||||
Foundation Capital | 13,200 | 0 | 8.00 | % | ||||||||||||
Textron AD&C Facility | 9,290 | 12,757 | 4.50% — 4.75 | % | Varies by loan (3) | |||||||||||
Fifth Third Bank Note Payable | 3,154 | 3,381 | 3.26 | % | April 2023 | |||||||||||
Other | 2,594 | 3,552 | 4.25% — 12.50 | % | From September 2010 to February 2023 | |||||||||||
Real Estate and Other | 217,929 | 373,129 | ||||||||||||||
BankAtlantic | ||||||||||||||||
Subordinated debentures (1) | 22,000 | 22,000 | LIBOR + 3.45% | November 2012 | ||||||||||||
Mortgage-Backed Bonds | — | 697 | (2 | ) | September 2013 | |||||||||||
Total Financial Services | 22,000 | 22,697 | ||||||||||||||
Fair value adjustment | (358 | ) | (465 | ) | ||||||||||||
Total Notes Payable | $ | 239,571 | 395,361 | |||||||||||||
(1) | LIBOR interest rates are indexed to 3-month LIBOR and adjust quarterly. | |
(2) | The bonds adjust semi-annually to the ten year treasury constant maturity rate minus 23 basis points. | |
(3) | The maturity date for this facility varies by loan. The maturity date associated with the Odyssey Dells Resort loan, which had an outstanding balance of $3.6 million as of December 31, 2010, is December 31, 2011. The maturity date associated with the Atlantic Palace Resort, which had an outstanding balance of $5.7 million as of December 31, 2010, is April 2013. | |
(4) | Represents original maturity dates. However, these loans are currently in default and repayment of the entire amounts outstanding under the notes has been accelerated. Therefore, these notes are currently due. | |
(5) | Notes are the subject of legal proceedings in which Woodbridge relinquished title to all assets and transferred its interest in certain Core entities in exchange for full settlement of the debt which was received in February 2011. |
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December 31, | Beginning | |||||||||||||||
2010 | 2009 | Optional | ||||||||||||||
Issue | Outstanding | Outstanding | Interest | Maturity | Redemption | |||||||||||
Junior Subordinated Debentures | Date | Amount | Amount | Rate (1) | Date | Date | ||||||||||
Levitt Capital Trust I (“LCT I”) | 03/15/2005 | $ | 23,196 | 23,196 | From fixed 8.11% to LIBOR + 3.85% | 03/01/2035 | 3/15/2010 | |||||||||
Levitt Capital Trust II (“LCT II”) | 05/04/2005 | 30,928 | 30,928 | From fixed 8.09% to LIBOR + 3.80% | 06/30/2035 | 06/30/2010 | ||||||||||
Levitt Capital Trust III (“LCT III”) | 06/01/2006 | 15,464 | 15,464 | From fixed 9.25% to LIBOR + 3.80% | 06/30/2036 | 06/30/2011 | ||||||||||
Levitt Capital Trust IV (“LCTIV”) | 07/18/2006 | 15,464 | 15,464 | From fixed 9.35% to LIBOR + 3.80% | 09/30/2036 | 09/30/2011 | ||||||||||
Total Woodbridge Holdings | 85,052 | 85,052 | ||||||||||||||
Bluegreen Statutory Trust I | 03/15/2005 | 23,196 | 23,196 | LIBOR +4.9% | 3/30/2035 | 03/30/2010 | ||||||||||
Bluegreen Statutory Trust II | 05/04/2005 | 25,774 | 25,774 | LIBOR +4.85% | 7/30/2035 | 07/30/2010 | ||||||||||
Bluegreen Statutory Trust III | 05/10/2005 | 10,310 | 10,310 | LIBOR +4.85% | 7/30/2035 | 07/30/2010 | ||||||||||
Bluegreen Statutory Trust IV | 04/24/2006 | 15,464 | 15,464 | LIBOR +4.85% | 6/30/2036 | 06/30/2011 | ||||||||||
Bluegreen Statutory Trust V | 07/21/2006 | 15,464 | 15,464 | LIBOR +4.85% | 9/30/2036 | 09/30/2011 | ||||||||||
Bluegreen Statutory Trust VI | 02/26/2007 | 20,619 | 20,619 | LIBOR +4.8% | 4/30/2037 | 04/30/2012 | ||||||||||
Total Bluegreen Corporation | 110,827 | 110,827 | ||||||||||||||
BBX Capital Trust I(A) | 06/26/2007 | 26,918 | 26,436 | LIBOR + 1.45% | 09/15/2037 | 09/15/2012 | ||||||||||
BBX Capital Trust II(A) | 09/20/2007 | 5,389 | 5,290 | LIBOR + 1.50% | 12/15/2037 | 12/15/2012 | ||||||||||
BBX Capital Trust II | 03/05/2002 | 67,546 | 62,097 | 8.50% | 03/31/2032 | 03/31/2007 | ||||||||||
BBX Capital Trust III | 06/26/2002 | 27,978 | 26,928 | LIBOR + 3.45% | 06/26/2032 | 06/26/2007 | ||||||||||
BBX Capital Trust IV | 09/26/2002 | 27,950 | 26,914 | LIBOR + 3.40% | 09/26/2032 | 09/26/2007 | ||||||||||
BBX Capital Trust V | 09/27/2002 | 11,180 | 10,766 | LIBOR + 3.40% | 09/30/2032 | 09/27/2007 | ||||||||||
BBX Capital Trust VI | 12/10/2002 | 16,737 | 16,125 | LIBOR + 3.35% | 12/10/2032 | 12/10/2007 | ||||||||||
BBX Capital Trust VII | 12/19/2002 | 27,866 | 26,874 | LIBOR + 3.25% | 12/26/2032 | 12/19/2007 | ||||||||||
BBX Capital Trust VIII | 12/19/2002 | 16,575 | 15,969 | LIBOR + 3.35% | 01/07/2033 | 12/19/2007 | ||||||||||
BBX Capital Trust IX | 12/19/2002 | 11,051 | 10,647 | LIBOR + 3.35% | 01/07/2033 | 12/19/2007 | ||||||||||
BBX Capital Trust X | 03/26/2003 | 55,620 | 53,694 | LIBOR + 3.15% | 03/26/2033 | 03/26/2008 | ||||||||||
BBX Capital Trust XI | 04/10/2003 | 11,029 | 10,637 | LIBOR + 3.25% | 04/24/2033 | 04/24/2008 | ||||||||||
BBX Capital Trust XII | 03/27/2003 | 16,546 | 15,957 | LIBOR + 3.25% | 04/07/2033 | 04/07/2008 | ||||||||||
Total BankAtlantic Bancorp (2) | 322,385 | 308,334 | ||||||||||||||
Purchase accounting adjustment | (56,696 | ) | (57,002 | ) | ||||||||||||
Total Junior Subordinated Debentures | $ | 461,568 | 447,211 | |||||||||||||
(1) | LIBOR interest rates are indexed to three-month LIBOR and adjust quarterly. | |
(2) | Included in the outstanding balances at December 31, 2010 and 2009 was $28.2 million and $14.1 million, respectively, of deferred interest. Interest can be deferred for 20 consecutive quarters with the entire amount of deferred interest due at the end of the deferral period. As of December 31, 2010, BankAtlantic Bancorp had deferred interest payments for 8 consecutive quarters. BankAtlantic Bancorp may end the deferral by paying all accrued and unpaid interest. |
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For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Continuing operations: | ||||||||||||
Current: | ||||||||||||
Federal | $ | (2,267 | ) | (67,213 | ) | (2,880 | ) | |||||
State | 2,006 | — | (1 | ) | ||||||||
(261 | ) | (67,213 | ) | (2,881 | ) | |||||||
Deferred: | ||||||||||||
Federal | 2,965 | 369 | 14,308 | |||||||||
State | (2,599 | ) | (1,318 | ) | 4,336 | |||||||
366 | (1,687 | ) | 18,644 | |||||||||
Provision (benefit) for income taxes | $ | 105 | (68,900 | ) | 15,763 | |||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2010(1) | 2009 (1) | 2008 (1) | ||||||||||||||||||||||
Income tax provision at expected federal income tax rate of 35% | $ | (63,716 | ) | (35.00 | )% | $ | (52,605 | ) | (35.00 | )% | $ | (116,283 | ) | (35.00 | )% | |||||||||
Increase (decrease) resulting from: | ||||||||||||||||||||||||
Provision (benefit) for state taxes, net of federal effect | (3,419 | ) | (1.88 | ) | (13,760 | ) | (9.15 | ) | (11,975 | ) | (3.60 | ) | ||||||||||||
Taxes related to subsidiaries not consolidated for income tax purposes | (3,496 | ) | (1.92 | ) | 2,100 | 1.40 | (43,000 | ) | (12.94 | ) | ||||||||||||||
Gain on bargain purchase of Bluegreen | — | — | (63,997 | ) | (42.58 | ) | — | — | ||||||||||||||||
Increase in valuation allowance | 67,215 | 36.92 | 44,861 | 29.85 | 190,516 | 57.34 | ||||||||||||||||||
Expired NOLs | — | — | — | — | 1,281 | 0.39 | ||||||||||||||||||
Gain on Levitt and Sons settlement | 4,031 | 2.21 | 10,182 | 6.77 | (20,981 | ) | (6.32 | ) | ||||||||||||||||
Goodwill impairment adjustment | — | — | 4,361 | 2.90 | 16,899 | 5.09 | ||||||||||||||||||
Tax credits | 127 | 0.07 | — | — | — | — | ||||||||||||||||||
Tax-exempt interest income | (160 | ) | (0.09 | ) | (3 | ) | (0.00 | ) | (152 | ) | (0.05 | ) | ||||||||||||
Other — net | (477 | ) | (0.26 | ) | (39 | ) | (0.03 | ) | (542 | ) | (0.16 | ) | ||||||||||||
Provision (benefit) for income taxes | $ | 105 | 0.06 | % | $ | (68,900 | ) | (45.84 | )% | $ | 15,763 | 4.74 | % | |||||||||||
(1) | Expected tax is computed based upon income (loss) from continuing operations before noncontrolling interest. |
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December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Deferred tax assets: | ||||||||||||
Allowance for loan losses, REO, tax certificate losses and write-downs for financial statement purposes | $ | 82,076 | 66,846 | 49,642 | ||||||||
Federal and State NOL and tax credit carryforward | 394,100 | 284,784 | 141,113 | |||||||||
Capital loss carryover | 2,978 | 2,978 | — | |||||||||
Investment in Levitt and Sons | — | 33,082 | 46,393 | |||||||||
Compensation expensed for books and deferred for tax purposes | 4 | 194 | 779 | |||||||||
Real estate inventory capitalized costs for tax purposes in excess of amounts capitalized for financial statement purposes | 4,979 | 82,479 | 2,398 | |||||||||
Real estate valuation | 90,936 | 49,259 | 1,295 | |||||||||
Accumulated other comprehensive loss, net | 1,278 | 2,409 | 2,906 | |||||||||
Share based compensation | 10,861 | 9,164 | 3,982 | |||||||||
Income recognized for tax purposes and deferred for financial statement purposes | 6,846 | 10,334 | 7,510 | |||||||||
Investment in securities | — | 825 | 5,965 | |||||||||
Investment in unconsolidated affiliates | 828 | 828 | 11,135 | |||||||||
Property and equipment | 4,535 | 2,731 | — | |||||||||
Purchase accounting adjustments for bank acquisitions | 507 | — | — | |||||||||
Other | 19,176 | 21,368 | 9,143 | |||||||||
Total gross deferred tax assets | 619,104 | 567,281 | 282,261 | |||||||||
Valuation allowance | (384,818 | ) | (318,306 | ) | (272,765 | ) | ||||||
Total deferred tax assets | 234,287 | 248,975 | 9,496 | |||||||||
Deferred tax liabilities: | ||||||||||||
Installment sales treatment of notes | 213,153 | 224,941 | — | |||||||||
Intangible assets | 24,593 | 23,355 | — | |||||||||
Junior subordinate notes | 21,869 | 20,979 | — | |||||||||
Deferred loan income | 1,674 | 1,188 | 1,468 | |||||||||
Prepaid pension expense | 1,630 | 1,852 | 2,625 | |||||||||
Property and equipment | — | — | 3,073 | |||||||||
Other | 31 | 1,865 | 2,330 | |||||||||
Total gross deferred tax liabilities | 262,950 | 274,180 | 9,496 | |||||||||
Net deferred tax (liability) asset | (28,663 | ) | (25,205 | ) | — | |||||||
Less net deferred tax liability at beginning of period | 25,205 | — | (16,331 | ) | ||||||||
Net deferred tax liability acquired due to purchase accounting | — | — | (39 | ) | ||||||||
Acquisition of Bluegreen | — | 24,029 | — | |||||||||
Effect of a change in accounting principle | — | 86 | — | |||||||||
Adoption of ASU 2009-16 and 17 | 1,781 | — | — | |||||||||
Increase in deferred tax liability from capital transactions | — | — | 2,011 | |||||||||
Reduction in deferred tax valuation allowance for continuing operations | 1,311 | 2,777 | — | |||||||||
Decrease in BFC’s accumulated other comprehensive income | — | — | (981 | ) | ||||||||
Decrease in BankAtlantic Bancorp’s accumulated other comprehensive income | — | — | (3,304 | ) | ||||||||
Benefit (provision) for deferred income taxes | $ | (366 | ) | 1,687 | (18,644 | ) | ||||||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Balance, beginning of period | $ | 318,306 | 272,765 | 84,028 | ||||||||
Other comprehensive income (loss) | 841 | 792 | (2,538 | ) | ||||||||
Increase in deferred tax valuation allowance | 67,215 | 44,861 | 190,516 | |||||||||
Increase in deferred tax valuation allowance-discontinued operations | (951 | ) | 6,030 | — | ||||||||
Acquisition of control of Bluegreen | — | (4,704 | ) | — | ||||||||
Increase in deferred tax allowance — paid in capital | (593 | ) | (1,438 | ) | 759 | |||||||
Balance, end of period | $ | 384,818 | 318,306 | 272,765 | ||||||||
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For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Balance as of beginning of period | $ | 2,583 | 2,571 | 2,559 | ||||||||
Additions based on tax positions related to current year | — | 84 | 542 | |||||||||
Additions based on tax positions related to prior year | — | — | 74 | |||||||||
Lapse of Statute of Limitations | — | — | (575 | ) | ||||||||
Reductions of tax positions for prior years | (72 | ) | (29 | ) | ||||||||
Balance as of end of period | $ | 2,583 | 2,583 | 2,571 | ||||||||
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Severance | Contract and Lease | Independent | ||||||||||||||||||
Related and Benefits | Termination | Contractor | ||||||||||||||||||
Liability | Liabilities | Agreements | Surety Bond Accrual | Total | ||||||||||||||||
Balance at December 31, 2007 | $ | 2,056 | 2,000 | 1,421 | 1,826 | 7,303 | ||||||||||||||
Expenses incurred | 4,409 | 2,525 | — | (150 | ) | 6,784 | ||||||||||||||
Amounts paid or amortized | (6,165 | ) | (2,359 | ) | (824 | ) | (532 | ) | (9,880 | ) | ||||||||||
Balance at December 31, 2008 | 300 | 2,166 | 597 | 1,144 | 4,207 | |||||||||||||||
Bluegreen Balance at November 16, 2009 | — | 2,099 | — | — | 2,099 | |||||||||||||||
Expenses incurred | 3,424 | 2,376 | 43 | (269 | ) | 5,574 | ||||||||||||||
Amounts paid or amortized | (2,600 | ) | (996 | ) | (640 | ) | (348 | ) | (4,584 | ) | ||||||||||
Balance at December 31, 2009 | 1,124 | 5,645 | — | 527 | 7,296 | |||||||||||||||
Expenses incurred | 4,834 | 3,705 | — | — | 8,539 | |||||||||||||||
Amounts paid or amortized | (3,039 | ) | (2,710 | ) | — | (37 | ) | (5,786 | ) | |||||||||||
Balance at December 31, 2010 | $ | 2,919 | 6,640 | — | 490 | 10,049 | ||||||||||||||
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Amount | ||||
Assets sold: | ||||
Loans | $ | 6,470 | ||
Property and equipment | 13,373 | |||
Total assets sold | 19,843 | |||
Liabilities transferred: | ||||
Deposits | (24,477 | ) | ||
Other liabilities | (346 | ) | ||
Total liabilities transferred | (24,823 | ) | ||
Net liabilities transferred | (4,980 | ) | ||
Deposit premium | 654 | |||
Purchase transaction costs | (165 | ) | ||
Net cash outflows from sales of stores | $ | (4,491 | ) | |
Year Ending December 31, | Amount | |||
2011 | $ | 18,286 | ||
2012 | 15,615 | |||
2013 | 12,542 | |||
2014 | 10,852 | |||
2015 | 10,090 | |||
Thereafter | 87,112 | |||
Total | $ | 154,496 | ||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Rental expense for premises and equipment | $ | 22,466 | $ | 14,388 | $ | 14,407 | ||||||
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As of December 31, | ||||||||
2010 | 2009 | |||||||
Commitments to sell fixed rate residential loans | $ | 14,408 | $ | 23,255 | ||||
Commitments to originate loans held for sale | 12,571 | 18,708 | ||||||
Commitments to originate loans held to maturity | 10,693 | 43,842 | ||||||
Commitments to purchase residential loans | 2,590 | — | ||||||
Commitments to extend credit, including the undisbursed portion of loans in process | 357,730 | 396,627 | ||||||
Standby letters of credit | 9,804 | 13,573 | ||||||
Commercial lines of credit | 77,144 | 74,841 |
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Weighted Average | ||||
For the Year Ended | ||||
December 31, | ||||
Employees | 2009 | |||
Expected volatility | 87.11 | % | ||
Expected dividends | — | % | ||
Expected term (in years) | 2.97 | |||
Average risk-free interest rate | 1.50 | % | ||
Option value | $ | 0.21 |
Weighted Average | ||||||||
For the Year Ended | ||||||||
December 31, | ||||||||
Non-Employee Directors | 2009 | 2008 | ||||||
Expected volatility | 81.83 | % | 50.81 | % | ||||
Expected dividends | — | % | — | % | ||||
Expected term (in years) | 3.37 | 5.00 | ||||||
Average risk-free interest rate | 1.73 | % | 3.35 | % | ||||
Option value | $ | 0.22 | $ | 0.40 |
Weighted | Weighted | |||||||||||||||
Average | Average | Aggregate | ||||||||||||||
Outstanding | Exercise | Remaining | Intrinsic | |||||||||||||
Options | Price | Contractual Term | Value ($000) | |||||||||||||
Outstanding at December 31, 2007 | 1,723,217 | $ | 5.07 | 6.31 | $ | — | ||||||||||
Exercised | — | 0.00 | ||||||||||||||
Forfeited | (30,000 | ) | 6.04 | |||||||||||||
Expired | (147,407 | ) | 3.68 | |||||||||||||
Granted | 252,150 | 0.83 | ||||||||||||||
Outstanding at December 31, 2008 | 1,797,960 | $ | 4.57 | 6.35 | $ | — | ||||||||||
Exercised | — | 0.00 | ||||||||||||||
Forfeited (a) | (1,777,729 | ) | 4.60 | |||||||||||||
Expired | (20,231 | ) | 2.14 | |||||||||||||
Granted (a) | 2,530,983 | 0.41 | ||||||||||||||
Outstanding at December 31, 2009 | 2,530,983 | $ | 0.41 | 5.19 | $ | — | ||||||||||
Exercised | (5,500 | ) | 0.41 | 4 | ||||||||||||
Forfeited | (13,017 | ) | 0.41 | |||||||||||||
Expired | (20,290 | ) | 0.41 | |||||||||||||
Granted | — | 0.41 | ||||||||||||||
Outstanding at December 31, 2010 | 2,492,176 | $ | 0.41 | 4.24 | $ | — | ||||||||||
Exercisable at December 31, 2010 | 1,514,741 | $ | 0.41 | 3.96 | $ | — | ||||||||||
Available for grant at December 31, 2010 | 4,118,013 | |||||||||||||||
(a) | The options which were re-priced during September 2009 were treated under GAAP as having been forfeited and replaced with new grants. Accordingly, these options are included as “Forfeited” and “Granted” options in the table. |
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Weighted | ||||||||
Unvested | Average | |||||||
Restricted | Grant Date | |||||||
Stock | Fair Value | |||||||
Outstanding at December 31, 2007 | 9,384 | $ | 5.62 | |||||
Granted | 120,480 | 0.83 | ||||||
Vested | (79,664 | ) | 0.60 | |||||
Forfeited | — | — | ||||||
Outstanding at December 31, 2008 | 50,200 | $ | 1.26 | |||||
Granted | — | |||||||
Vested | (50,200 | ) | 0.22 | |||||
Forfeited | — | — | ||||||
Outstanding at December 31, 2009 | — | $ | — | |||||
Granted | — | — | ||||||
Vested | — | — | ||||||
Forfeited | — | — | ||||||
Outstanding at December 31, 2010 | — | $ | — | |||||
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Weighted | Weighted Average | Aggregate | ||||||||||||||
Average | Remaining | Intrinsic | ||||||||||||||
Number | Exercise | Contractual | Value | |||||||||||||
of Options | Price | Term | (thousands) | |||||||||||||
Options outstanding at December 31, 2007 | 372,532 | $ | 86.66 | 8.00 years | $ | — | ||||||||||
Granted | 36,398 | 6.70 | — | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | 90,459 | 81.85 | — | |||||||||||||
Options outstanding at December 31, 2008 | 318,471 | $ | 78.89 | 7.19 years | — | |||||||||||
Granted | — | — | — | |||||||||||||
Exercised | — | — | — | |||||||||||||
Cancelled | 318,471 | $ | 78.89 | — | ||||||||||||
Options outstanding at December 31, 2009 | — | $ | — | — | $ | — | ||||||||||
Options exercisable at December 31, 2009 | — | $ | — | — | $ | — | ||||||||||
Stock options available for equity compensation grants at December 31, 2009 | — | |||||||||||||||
Year ended | ||||
December 31, 2008 | ||||
Expected volatility | 65.47 | % | ||
Expected dividend yield | 0.00 | % | ||
Risk-free interest rate | 4.16 | % | ||
Expected life | 5 years | |||
Forfeiture rate — executives | 5 | % | ||
Forfeiture rate — non-executives | — |
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Weighted Average | ||||||||
Remaining | Unrecognized | |||||||
As of December 31, 2010 | Recognition Period | Compensation | ||||||
(in years) | (000’s) | |||||||
Stock Option Awards | 1.9 | $ | 1,873 | |||||
Restricted Stock Awards | 2.2 | $ | 4,687 |
Weighted | ||||||||
Average | ||||||||
Remaining | ||||||||
Recognition | Unrecognized | |||||||
As of December 31, 2009 | Period | Compensation | ||||||
(in years) | (000’s) | |||||||
Stock Option Awards | 2.4 | $ | 4,261 | |||||
Restricted Stock Awards | 3.1 | $ | 8,050 |
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Weighted | ||||||||||||||||
Average | ||||||||||||||||
Exercise | Number of | Aggregate | ||||||||||||||
Outstanding | Price Per | Shares | Intrinsic | |||||||||||||
Options | Share | Exercisable | Value | |||||||||||||
Balance at November 16, 2009 | 2,795 | $ | 9.64 | 956 | $ | 7 | ||||||||||
Granted | — | $ | — | |||||||||||||
Forfeited | — | $ | — | |||||||||||||
Expired | — | $ | — | |||||||||||||
Exercised | — | $ | — | |||||||||||||
Balance at December 31, 2009 | 2,795 | $ | 9.64 | 956 | $ | 7 | ||||||||||
Granted | — | $ | — | |||||||||||||
Forfeited | (78 | ) | 12.88 | |||||||||||||
Expired | — | $ | — | |||||||||||||
Exercised | — | $ | — | |||||||||||||
Balance at December 31, 2010 | 2,717 | $ | 9.53 | 1,310 | $ | 91 | ||||||||||
Weighted-Average Grant- | ||||||||
Non-vested Restricted Shares | Number of Shares | Date Fair Value per Share | ||||||
(In 000’s) | ||||||||
Unvested at November 16, 2009 | 1,441 | $ | 7.89 | |||||
Granted | — | — | ||||||
Vested | (15 | ) | 2.75 | |||||
Forfeited | — | — | ||||||
Unvested at December 31, 2009 | 1,426 | $ | 7.94 | |||||
Granted | — | — | ||||||
Vested | (54 | ) | 2.75 | |||||
Forfeited | (45 | ) | 8.28 | |||||
Unvested at December 31, 2010 | 1,327 | $ | 8.14 | |||||
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Stock Option Plans | ||||||||||||||
Maximum | Shares | Class of | Vesting | Type of | ||||||||||
Term | Authorized (3) | Stock | Requirements | Options (2) | ||||||||||
2001 Amended and Restated Stock Option Plan (3) | 10 years | 783,778 | Class A | (1 | ) | ISO, NQ | ||||||||
2005 Restricted Stock and Option Plan (“BankAtlantic Bancorp Plan”) (4) | 10 years | 9,375,000 | Class A | (1 | ) | ISO, NQ |
(1) | Vesting is established by the BankAtlantic Bancorp Compensation Committee in connection with each grant of options or restricted stock. All BankAtlantic Bancorp directors’ stock options vest immediately. | |
(2) | ISO — Incentive Stock Option NQ — Non-qualifying Stock Option | |
(3) | In 2005, all shares remaining available for grant under the 2001 stock option plan were canceled. | |
(4) | The BankAtlantic Bancorp Plan provides that up to 9,375,000 shares of BankAtlantic Bancorp Class A common stock may be issued for restricted stock awards and upon the exercise of options granted under the Plan. The BankAtlantic Bancorp Plan was amended in May 2009 to increase the allowable shares issuable from 1,200,000 to 9,375,000. |
Weighted Average | ||||
2008 | ||||
Volatility | 46.09 | % | ||
Expected dividends | 1.03 | % | ||
Expected term (in years) | 5.00 | |||
Risk-free rate | 3.29 | % |
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Weighted | Weighted | |||||||||||||||
Class A | Average | Average | Aggregate | |||||||||||||
Outstanding | Exercise | Remaining | Intrinsic | |||||||||||||
Options | Price | Contractual Term | Value ($000) | |||||||||||||
Outstanding at December 31, 2007 | 1,064,498 | 56.17 | 6.2 | |||||||||||||
Exercised | (6,630 | ) | 15.60 | |||||||||||||
Forfeited | (126,678 | ) | 74.81 | |||||||||||||
Expired | (111,526 | ) | 30.50 | |||||||||||||
Granted | 75,954 | 9.70 | ||||||||||||||
Outstanding at December 31, 2008 | 895,618 | 53.09 | 5.8 | |||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | (38,337 | ) | 72.56 | |||||||||||||
Expired | (77,062 | ) | 28.10 | |||||||||||||
Granted | — | — | ||||||||||||||
Outstanding at December 31, 2009 | 780,219 | 54.61 | 5.2 | |||||||||||||
Exercised | — | |||||||||||||||
Forfeited | (156,191 | ) | 61.34 | |||||||||||||
Expired | (42,287 | ) | 42.43 | |||||||||||||
Granted | — | |||||||||||||||
Outstanding at December 31, 2010 | 581,741 | 53.69 | 3.7 | $ | — | |||||||||||
Exercisable at December 31, 2010 | 489,872 | 52.48 | 3.3 | $ | — | |||||||||||
Available for grant at December 31, 2010 | 7,514,493 | |||||||||||||||
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Class A | Weighted | |||||||
Non-vested | Average | |||||||
Restricted | Grant Date | |||||||
Stock | Fair Value | |||||||
Outstanding at December 31, 2007 | 30,689 | $ | 42.01 | |||||
Vested | (10,295 | ) | 33.77 | |||||
Forfeited | — | — | ||||||
Granted | 5,455 | 9.70 | ||||||
Outstanding at December 31, 2008 | 25,849 | 38.47 | ||||||
Vested | (6,049 | ) | 26.56 | |||||
Forfeited | — | — | ||||||
Granted | — | — | ||||||
Outstanding at December 31, 2009 | 19,800 | 42.11 | ||||||
Vested | (9,900 | ) | 38.52 | |||||
Forfeited | (116,000 | ) | 1.82 | |||||
Granted | 1,675,000 | 1.24 | ||||||
Outstanding at December 31, 2010 | 1,568,900 | $ | 1.48 | |||||
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As of December 31, | ||||||||
2010 | 2009 | |||||||
Change in benefit obligation | ||||||||
Benefit obligation at the beginning of the year | $ | 31,375 | 31,150 | |||||
Interest cost | 1,838 | 1,832 | ||||||
Actuarial loss (gains) | 1,956 | (510 | ) | |||||
Benefits paid | (1,194 | ) | (1,097 | ) | ||||
Projected benefit obligation at end of year | 33,975 | 31,375 | ||||||
Change in plan assets | ||||||||
Fair value of Plan assets at the beginning of year | 21,946 | 17,921 | ||||||
Actual return on Plan assets | 2,737 | 5,122 | ||||||
Employer contribution | 781 | — | ||||||
Benefits paid | (1,194 | ) | (1,097 | ) | ||||
Fair value of Plan assets as of actuarial date | 24,270 | 21,946 | ||||||
Funded status at end of year | $ | (9,705 | ) | (9,429 | ) | |||
As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net comprehensive loss | $ | 15,852 | 13,929 | 19,690 | ||||||||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Change in comprehensive loss | $ | 1,923 | (5,761 | ) | 15,775 | |||||||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Interest cost on projected benefit obligation | $ | 1,838 | 1,832 | 1,719 | ||||||||
Expected return on plan assets | (1,804 | ) | (1,475 | ) | (2,430 | ) | ||||||
Amortization of unrecognized net gains and losses | 1,322 | 1,648 | 463 | |||||||||
Net periodic pension (income) expense (1) | $ | 1,356 | 2,005 | (248 | ) | |||||||
(1) | The estimated net loss for the pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $1.3 million. |
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For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Weighted average discount rate used to determine benefit obligation | 5.50 | % | 6.00 | % | 6.00 | |||||||
Weighted average discount rate used to to determine net periodic benefit cost | 5.50 | % | 6.00 | % | 6.00 | |||||||
Rate of increase in future compensation levels | N/A | N/A | N/A | |||||||||
Expected long-term rate of return | 8.50 | % | 8.50 | % | 8.50 |
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Quoted Prices | ||||
In Active Markets | ||||
for Identical | ||||
Assets | ||||
Asset Category | (Level 1) | |||
Cash | $ | 462 | ||
Mutual Funds: (1) | ||||
US Large Cap Growth | 1,152 | |||
US Large Cap Value | 1,028 | |||
US Large Cap Blend | 3,268 | |||
US Mid-Cap Growth | 648 | |||
US Mid-Cap Value | 1,273 | |||
US Mid-Cap Blend | 982 | |||
US Small Cap Blend | 250 | |||
International Equity | 3,264 | |||
Balanced | 11,334 | |||
Common Stock (2) | 608 | |||
Total pension assets | $ | 24,269 | ||
(1) | The Plan maintains diversified mutual funds in an attempt to diversify risks and reduce volatility while achieving the targeted asset mix. | |
(2) | This category invests in aggressive growth common stocks. |
Pension | ||||
Expected Future Service | Benefits | |||
2011 | $ | 1,496 | ||
2012 | 1,549 | |||
2013 | 1,606 | |||
2014 | 1,681 | |||
2015 | 1,864 | |||
Years 2016-2020 | 10,247 |
The table below outlines the terms of the Security Plus 401(k) Plan and the associated employer costs (dollars in thousands): |
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Employee salary contribution limit (1) | $ | 16.5 | 16.5 | 15.5 | ||||||||
Percentage of salary limitation | % 75 | 75 | 75 | |||||||||
Total match contribution (2) | $ | — | 771 | 2,551 | ||||||||
Vesting of employer match | Immediate | Immediate | Immediate |
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(1) | For the years ended December 31, 2010, 2009 and 2008, employees over the age of 50 were entitled to contribute $22,000, $22,000 and $20,500, respectively. | |
(2) | The employer matched 100% of the first 3% of employee contributions and 50% of the next 2% of employee contributions. The Company discontinued the employer match on April 1, 2009. |
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December 31, | ||||||||
2010 | 2009 | |||||||
As Revised | ||||||||
BankAtlantic Bancorp | $ | 7,823 | 88,910 | |||||
Bluegreen | 44,362 | 42,731 | ||||||
Joint ventures | 26,071 | 27,671 | ||||||
$ | 78,256 | 159,312 | ||||||
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
As Revised | ||||||||||||
Noncontrolling interest — Continuing Operations | ||||||||||||
BankAtlantic Bancorp | $ | (85,821 | ) | (127,716 | ) | (161,416 | ) | |||||
Woodbridge | — | 6,008 | (113,593 | ) | ||||||||
Bluegreen | 1,776 | 2,168 | — | |||||||||
Joint ventures | 7,980 | (3,002 | ) | 12 | ||||||||
$ | (76,065 | ) | (122,542 | ) | (274,997 | ) | ||||||
Noncontrolling interest — Discontinued Operations: | ||||||||||||
BankAtlantic Bancorp | $ | (274 | ) | 2,592 | 12,144 | |||||||
Woodbridge | — | (661 | ) | 2,286 | ||||||||
$ | (274 | ) | 1,931 | 14,430 | ||||||||
$ | (76,339 | ) | (120,611 | ) | (260,567 | ) | ||||||
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Fair Value Measurements Using | ||||||||||||||||
Quoted prices in | Significant | |||||||||||||||
Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
December 31, | Assets | Inputs | Inputs | |||||||||||||
Description | 2010 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Mortgage-backed securities | $ | 112,042 | — | 112,042 | — | |||||||||||
REMICS | 68,841 | — | 68,841 | — | ||||||||||||
Agency bonds | 60,143 | — | 60,143 | — | ||||||||||||
Municipal bonds | 162,123 | — | 162,123 | — | ||||||||||||
Taxable securities | 19,922 | — | 19,922 | — | ||||||||||||
Foreign currency put options | 24 | 24 | — | — | ||||||||||||
Benihana Convertible Preferred Stock | 21,106 | — | — | 21,106 | ||||||||||||
Other equity securities | 20,819 | 20,819 | — | — | ||||||||||||
Total | $ | 465,020 | 20,843 | 423,071 | 21,106 | |||||||||||
Quoted prices in | ||||||||||||||||
Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
December 31, | Assets | Inputs | Inputs | |||||||||||||
Description | 2009 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Mortgage-backed securities | $ | 211,945 | — | 211,945 | — | |||||||||||
REMICS | 107,347 | — | 107,347 | — | ||||||||||||
Bonds | 250 | — | — | 250 | ||||||||||||
Benihana Convertible Preferred Stock | 17,766 | — | — | 17,766 | ||||||||||||
Other equity securities | 9,067 | 9,067 | — | — | ||||||||||||
Total securities available for sale at fair value | $ | 346,375 | 9,067 | 319,292 | 18,016 | |||||||||||
Retained interest in notes receivable sold | 26,340 | — | — | 26,340 | ||||||||||||
Total assets measured at fair value on a recurring basis | $ | 372,715 | 9,067 | 319,292 | 44,356 | |||||||||||
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Retained | ||||||||||||||||||||
Interests in | Benihana | |||||||||||||||||||
Notes | Other | Convertible | Equity | |||||||||||||||||
Receivable Sold | Bonds | Preferred Stock | Securities | Total | ||||||||||||||||
Balance at December 31, 2008 | $ | — | 250 | 16,426 | 1,588 | 18,264 | ||||||||||||||
Total gains and losses (realized/unrealized) | (2,910 | ) | — | — | — | (2,910 | ) | |||||||||||||
Included in earnings | — | — | — | (1,588 | ) | (1,588 | ) | |||||||||||||
Included in other comprehensive income (loss) | — | — | 1,340 | — | 1,340 | |||||||||||||||
Purchases, issuances, and settlements | 29,250 | — | — | — | 29,250 | |||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||||||||
Balance at December 31, 2009 | 26,340 | 250 | 17,766 | — | 44,356 | |||||||||||||||
Total gains and losses (realized/unrealized) | — | — | — | — | — | |||||||||||||||
Included in earnings | — | — | — | — | — | |||||||||||||||
Cumulative effect of change in accounting principle (1) | (26,340 | ) | — | — | — | (26,340 | ) | |||||||||||||
Included in other comprehensive income | — | — | 3,340 | — | 3,340 | |||||||||||||||
Purchases, issuances, and settlements | — | (250 | ) | — | — | (250 | ) | |||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | |||||||||||||||
Balance at December 31, 2010 | $ | — | — | 21,106 | — | 21,106 | ||||||||||||||
(1) | Retained interests in notes receivable sold was eliminated upon a change in accounting principle. For further information see Note 5. |
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Fair Value Measurements Using | ||||||||||||||||||||
Quoted prices in | ||||||||||||||||||||
Active Markets | Significant | Significant | ||||||||||||||||||
for Identical | Other Observable | Unobservable | ||||||||||||||||||
December 31, | Assets | Inputs | Inputs | Total | ||||||||||||||||
Description | 2010 | (Level 1) | (Level 2) | (Level 3) | Impairments | |||||||||||||||
Loans measured for impairment using the fair value of the underlying collateral | $ | 395,333 | — | — | 395,333 | $ | 146,521 | |||||||||||||
Impairment of real estate owned | 26,359 | — | — | 26,359 | 6,830 | |||||||||||||||
Impairment of assets held for sale | 13,878 | 13,878 | 4,469 | |||||||||||||||||
Impairment of real estate inventory | 5,435 | — | — | 5,435 | 2,604 | |||||||||||||||
Total | $ | 441,005 | — | — | 441,005 | $ | 160,424 | |||||||||||||
(1) | Total impairments represents the amount of loss recognized during the year ended December 31, 2010 on assets that were measured at fair value as of December 31, 2010 |
Fair Value Measurements Using | ||||||||||||||||||||
Quoted prices in | ||||||||||||||||||||
Active Markets | Significant | Significant | ||||||||||||||||||
for Identical | Other Observable | Unobservable | ||||||||||||||||||
December 31, | Assets | Inputs | Inputs | Total | ||||||||||||||||
Description | 2009 | (Level 1) | (Level 2) | (Level 3) | Impairments (1) | |||||||||||||||
Loans measured for impairment using the fair value of the collateral | $ | 259,392 | — | — | 259,392 | $ | 189,193 | |||||||||||||
Impaired real estate owned | 16,980 | — | — | 16,980 | 4,124 | |||||||||||||||
Impaired real estate inventory | 145,586 | — | — | 145,586 | 106,632 | |||||||||||||||
Impaired properties and equipment | 14,260 | — | — | 14,260 | 6,450 | |||||||||||||||
Impaired goodwill | — | — | — | — | 10,542 | |||||||||||||||
Investment in Bluegreen | — | — | — | — | 31,181 | |||||||||||||||
Total | $ | 436,218 | — | — | 436,218 | $ | 348,122 | |||||||||||||
(1) | Total impairments is defined as the amount of loss recognized during the year on assets that were measured at fair value as of the end of the year. |
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December 31, 2010 | December 31, 2009 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
(As Revised) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 178,868 | 178,868 | 189,728 | 189,728 | |||||||||||
Interest bearing deposits in other banks | 455,538 | 455,538 | 126,352 | 126,352 | ||||||||||||
Restricted cash | 62,249 | 62,249 | 24,020 | 24,020 | ||||||||||||
Securities available for sale | 465,020 | 465,020 | 346,375 | 346,375 | ||||||||||||
Investment securities | 2,033 | 2,033 | 9,654 | 9,654 | ||||||||||||
Tax certificates | 89,789 | 90,738 | 110,991 | 112,472 | ||||||||||||
Federal Home Loan Bank stock | 43,557 | 43,557 | 48,751 | 48,751 | ||||||||||||
Retained interest in notes receivable sold | — | — | 26,340 | 26,340 | ||||||||||||
Loans receivable including loans held for sale, net | 3,039,486 | 2,689,890 | 3,683,441 | 3,381,796 | ||||||||||||
Notes receivable | 574,969 | 623,000 | 279,645 | 279,645 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Deposits | $ | 3,891,190 | 3,893,807 | 3,948,818 | 3,950,840 | |||||||||||
Advances from FHLB | 170,000 | 170,038 | 282,012 | 282,912 | ||||||||||||
Securities sold under agreements to repurchase and other short term borrowings | 22,764 | 22,764 | 27,271 | 27,271 | ||||||||||||
Receivable-backed notes payable | 569,214 | 560,728 | 237,416 | 237,416 | ||||||||||||
Notes and mortgage notes payable and other borrowings | 239,571 | 224,866 | 395,361 | 392,047 | ||||||||||||
Mortgage payables and liabilities associated with assets held for sale | — | — | 74,749 | 74,749 | ||||||||||||
Junior subordinated debentures | 461,568 | 220,080 | 447,211 | 170,598 |
263
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264
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265
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266
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BankAtlantic | Unallocated | |||||||||||||||||||||||||||||||
Bancorp | Amounts | |||||||||||||||||||||||||||||||
BFC | Real estate | Bluegreen | Bluegreen | Parent | and | Segment | ||||||||||||||||||||||||||
2010 | Activities | Operations | Resorts | Communities | BankAtlantic | Company | Eliminations | Total | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Sales of real estate | $ | — | 2,739 | 166,624 | 12,003 | — | — | — | 181,366 | |||||||||||||||||||||||
Other resorts and communities operations revenue | — | — | 65,979 | 1,696 | — | — | — | 67,675 | ||||||||||||||||||||||||
Other revenues | 1,781 | 1,397 | 52,966 | — | — | — | (318 | ) | 55,826 | |||||||||||||||||||||||
Interest income | — | — | — | — | 176,025 | 300 | 96,023 | 272,348 | ||||||||||||||||||||||||
Financial Services — non-interest income | — | — | — | — | 105,762 | 1,257 | (1,558 | ) | 105,461 | |||||||||||||||||||||||
Total revenues | 1,781 | 4,136 | 285,569 | 13,699 | 281,787 | 1,557 | 94,147 | 682,676 | ||||||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||||||
Cost of sale of real estate | — | 23,232 | 19,862 | 23,552 | — | — | — | 66,646 | ||||||||||||||||||||||||
Cost of sale of other resorts and communities operations | — | — | 46,863 | 3,514 | — | — | — | 50,377 | ||||||||||||||||||||||||
Interest expense | 6,264 | 12,745 | — | — | 24,691 | 14,872 | 66,095 | 124,667 | ||||||||||||||||||||||||
Provision for loan losses | — | — | — | — | 138,825 | 5,536 | — | 144,361 | ||||||||||||||||||||||||
Selling, general and administrative | 25,602 | 9,481 | 155,111 | 13,523 | — | — | 42,148 | 245,865 | ||||||||||||||||||||||||
Other expenses | — | 3,889 | — | — | 236,315 | 9,043 | (2,528 | ) | 246,719 | |||||||||||||||||||||||
Total costs and expenses | 31,866 | 49,347 | 221,836 | 40,589 | 399,831 | 29,451 | 105,715 | 878,635 | ||||||||||||||||||||||||
Loss on settlement of investment in Woodbridge’s subsidiary | (977 | ) | — | — | — | — | — | — | (977 | ) | ||||||||||||||||||||||
Gain on extinguishment of debt | — | 13,049 | — | — | — | — | — | 13,049 | ||||||||||||||||||||||||
Equity in earnings from unconsolidated affiliates | (2,045 | ) | — | — | — | — | 1,054 | 140 | (851 | ) | ||||||||||||||||||||||
Other income | 6,481 | 892 | — | — | — | — | (4,682 | ) | 2,691 | |||||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (26,626 | ) | (31,270 | ) | 63,733 | (26,890 | ) | (118,044 | ) | (26,840 | ) | (16,110 | ) | (182,047 | ) | |||||||||||||||||
Less: Provision (benefit) for income taxes | (7,097 | ) | — | — | — | (2,134 | ) | — | 9,336 | 105 | ||||||||||||||||||||||
(Loss) income from continuing operations | (19,529 | ) | (31,270 | ) | 63,733 | (26,890 | ) | (115,910 | ) | (26,840 | ) | (25,446 | ) | (182,152 | ) | |||||||||||||||||
Income (loss) from discontinued operations | — | 2,465 | — | — | — | (500 | ) | — | 1,965 | |||||||||||||||||||||||
Net (loss) income | $ | (19,529 | ) | (28,805 | ) | 63,733 | (26,890 | ) | (115,910 | ) | (27,340 | ) | (25,446 | ) | (180,187 | ) | ||||||||||||||||
Less: Net loss attributable to noncontrolling interests | (76,339 | ) | (76,339 | ) | ||||||||||||||||||||||||||||
Net loss attributable to BFC | $ | 50,893 | (103,848 | ) | ||||||||||||||||||||||||||||
Total assets | $ | 95,035 | 37,937 | 864,904 | 89,827 | 4,469,168 | 338,358 | (82,163 | ) | 5,813,066 | ||||||||||||||||||||||
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BankAtlantic | Unallocated | |||||||||||||||||||||||||||||||
Bancorp | Amounts | |||||||||||||||||||||||||||||||
BFC | Real estate | Bluegreen | Bluegreen | Parent | and | Segment | ||||||||||||||||||||||||||
Activities | Operations | Resorts | Communities | BankAtlantic | Company | Eliminations | Total | |||||||||||||||||||||||||
2009 | (As Revised) | (As Revised) | (As Revised) | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Sales of real estate | $ | — | 6,605 | 17,622 | 3,139 | — | — | 40 | 27,406 | |||||||||||||||||||||||
Other resorts and communities operations revenue | — | — | 5,239 | 593 | — | — | — | 5,832 | ||||||||||||||||||||||||
Other revenues | 1,296 | 2,312 | 5,354 | — | — | — | (103 | ) | 8,859 | |||||||||||||||||||||||
Interest income | — | — | — | — | 223,048 | 573 | 14,323 | 237,944 | ||||||||||||||||||||||||
Financial Services — non-interest income | — | — | — | — | 128,813 | 1,077 | (1,565 | ) | 128,325 | |||||||||||||||||||||||
Total revenues | 1,296 | 8,917 | 28,215 | 3,732 | 351,861 | 1,650 | 12,695 | 408,366 | ||||||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||||||
Cost of sale of real estate | 7,749 | 82,105 | 3,118 | 1,788 | — | — | 13,901 | 108,661 | ||||||||||||||||||||||||
Cost of sale of other resorts and communities operations | — | — | 3,538 | 1,480 | — | — | — | 5,018 | ||||||||||||||||||||||||
Interest expense | 6,511 | 6,293 | — | — | 59,724 | 15,535 | 4,920 | 92,983 | ||||||||||||||||||||||||
Provision for loan losses | — | — | — | — | 214,244 | 18,414 | — | 232,658 | ||||||||||||||||||||||||
Impairment of goodwill | 2,001 | — | — | — | — | — | — | 2,001 | ||||||||||||||||||||||||
Selling, general and administrative | 30,388 | 16,451 | 15,775 | 3,738 | — | — | 683 | 67,035 | ||||||||||||||||||||||||
Other expenses | — | 5,433 | — | — | 258,799 | 9,000 | (826 | ) | 272,406 | |||||||||||||||||||||||
Total costs and expenses | 46,649 | 110,282 | 22,431 | 7,006 | 532,767 | 42,949 | 18,678 | 780,762 | ||||||||||||||||||||||||
Gain on bargain purchase of Bluegreen | 182,849 | — | — | — | — | — | — | 182,849 | ||||||||||||||||||||||||
Gain on settlement of investment in Woodbridge’s subsidiary | 16,296 | — | — | — | — | — | 13,383 | 29,679 | ||||||||||||||||||||||||
Equity in earnings from unconsolidated affiliates | 32,276 | — | — | — | 479 | 487 | 139 | 33,381 | ||||||||||||||||||||||||
Impairment of unconsolidated affiliates | (31,181 | ) | — | — | — | — | — | — | (31,181 | ) | ||||||||||||||||||||||
Impairment of investments | (2,396 | ) | — | — | — | — | — | — | (2,396 | ) | ||||||||||||||||||||||
Investment gains | 6,654 | — | — | — | — | — | — | 6,654 | ||||||||||||||||||||||||
Other income | 5,775 | 526 | — | — | — | — | (3,192 | ) | 3,109 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 164,920 | (100,839 | ) | 5,784 | (3,274 | ) | (180,427 | ) | (40,812 | ) | 4,347 | (150,301 | ) | |||||||||||||||||||
Less: Benefit for income taxes | (35,503 | ) | — | — | — | (31,719 | ) | — | (1,678 | ) | (68,900 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | 200,423 | (100,839 | ) | 5,784 | (3,274 | ) | (148,708 | ) | (40,812 | ) | 6,025 | (81,401 | ) | |||||||||||||||||||
(Loss) income from discontinued operations | — | (15,632 | ) | — | — | — | 3,701 | — | (11,931 | ) | ||||||||||||||||||||||
Net income (loss) | $ | 200,423 | (116,471 | ) | 5,784 | (3,274 | ) | (148,708 | ) | (37,111 | ) | 6,025 | (93,332 | ) | ||||||||||||||||||
Less: Net loss attributable to noncontrolling interests | (120,611 | ) | (120,611 | ) | ||||||||||||||||||||||||||||
Net income attributable to BFC | $ | 126,636 | 27,279 | |||||||||||||||||||||||||||||
Total assets (As Revised) | $ | 122,070 | 257,390 | 546,282 | 110,997 | 4,755,122 | 456,860 | �� | (206,620 | ) | 6,042,101 | |||||||||||||||||||||
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BankAtlantic | Unallocated | |||||||||||||||||||||||||||||||
Bancorp | Amounts | |||||||||||||||||||||||||||||||
BFC | Real estate | Bluegreen | Bluegreen | Parent | and | Segment | ||||||||||||||||||||||||||
2008 | Activities | Operations | Resorts | Communities | BankAtlantic | Company | Eliminations | Total | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Sales of real estate | $ | — | 13,752 | — | — | — | — | 85 | 13,837 | |||||||||||||||||||||||
Other resorts and communities operations revenue | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other revenues | — | 3,033 | — | — | — | — | — | 3,033 | ||||||||||||||||||||||||
Interest income | — | — | — | — | 313,285 | 1,445 | (192 | ) | 314,538 | |||||||||||||||||||||||
Financial Services — non-interest income | — | — | — | — | 135,800 | 670 | (1,437 | ) | 135,033 | |||||||||||||||||||||||
Total revenues | — | 16,785 | — | — | 449,085 | 2,115 | (1,544 | ) | 466,441 | |||||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||||||
Cost of sale of real estate | 59 | 22,724 | — | — | — | — | (9,945 | ) | 12,838 | |||||||||||||||||||||||
Cost of sale of other resorts and communities operations | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Interest expense | 7,641 | 2,075 | — | — | 119,637 | 21,262 | (1,682 | ) | 148,933 | |||||||||||||||||||||||
Provision for loan losses | — | — | — | — | 135,383 | 24,418 | — | 159,801 | ||||||||||||||||||||||||
Impairment of goodwill | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Selling, general and administrative | 36,886 | 20,648 | — | — | — | — | (2,333 | ) | 55,201 | |||||||||||||||||||||||
Other expenses | — | — | — | — | 330,623 | 8,741 | (4,697 | ) | 334,667 | |||||||||||||||||||||||
Total costs and expenses | 44,586 | 45,447 | — | — | 585,643 | 54,421 | (18,657 | ) | 711,440 | |||||||||||||||||||||||
Equity in earnings from unconsolidated affiliates | 8,844 | — | — | — | 1,508 | 601 | 4,111 | 15,064 | ||||||||||||||||||||||||
Impairment of unconsolidated affiliates | (96,579 | ) | — | — | — | — | — | — | (96,579 | ) | ||||||||||||||||||||||
Impairment of investments | (15,548 | ) | — | — | — | — | — | — | (15,548 | ) | ||||||||||||||||||||||
Investment gains | 2,076 | — | — | — | — | — | — | 2,076 | ||||||||||||||||||||||||
Other income | 8,970 | 3,341 | — | — | — | — | (4,561 | ) | 7,750 | |||||||||||||||||||||||
Loss from continuing operations before income taxes | (136,823 | ) | (25,321 | ) | — | — | (135,050 | ) | (51,705 | ) | 16,663 | (332,236 | ) | |||||||||||||||||||
Less: (Benefit) provision for income taxes | (14,887 | ) | — | — | — | 31,094 | 1,395 | (1,839 | ) | 15,763 | ||||||||||||||||||||||
Loss from continuing operations | (121,936 | ) | (25,321 | ) | — | — | (166,144 | ) | (53,100 | ) | 18,502 | (347,999 | ) | |||||||||||||||||||
Income from discontinued operations | — | 2,783 | — | — | — | 16,605 | — | 19,388 | ||||||||||||||||||||||||
Extraordinary gain, less income tax | 9,145 | — | — | — | — | — | — | 9,145 | ||||||||||||||||||||||||
Net loss | $ | (112,791 | ) | (22,538 | ) | — | — | (166,144 | ) | (36,495 | ) | 18,502 | (319,466 | ) | ||||||||||||||||||
Less: Net loss attributable to noncontrolling interests | (260,567 | ) | (260,567 | ) | ||||||||||||||||||||||||||||
Net loss attributable to BFC | $ | 279,069 | (58,899 | ) | ||||||||||||||||||||||||||||
Total assets | $ | 218,167 | 384,261 | — | — | 5,713,690 | 542,478 | (463,014 | ) | 6,395,582 | ||||||||||||||||||||||
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Bank Order | ||||||||||||||||||||||||
PCA Defined | Capital | |||||||||||||||||||||||
Actual | Well Capitalized | Requirements | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2010 | ||||||||||||||||||||||||
Total risk-based capital | $ | 334,601 | 11.72 | % | $ | 285,541 | 10.00 | % | $ | 399,758 | 14.00 | % | ||||||||||||
Tier I risk-based capital | $ | 276,362 | 9.68 | % | $ | 171,325 | 6.00 | % | $ | 171,325 | 6.00 | % | ||||||||||||
Tangible capital | $ | 276,362 | 6.22 | % | $ | 66,672 | 1.50 | % | $ | 66,672 | 1.50 | % | ||||||||||||
Core capital | $ | 276,362 | 6.22 | % | $ | 222,240 | 5.00 | % | $ | 355,584 | 8.00 | % | ||||||||||||
As of December 31, 2009: | ||||||||||||||||||||||||
Total risk-based capital | $ | 422,724 | 12.56 | % | $ | 336,466 | 10.00 | % | ||||||||||||||||
Tier I risk-based capital | $ | 357,660 | 10.63 | % | $ | 201,880 | 6.00 | % | ||||||||||||||||
Tangible capital | $ | 357,660 | 7.58 | % | $ | 70,814 | 1.50 | % | ||||||||||||||||
Core capital | $ | 357,660 | 7.58 | % | $ | 236,046 | 5.00 | % |
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(In thousands)
December 31, | ||||||||
2010 | 2009 | |||||||
(As Revised) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 4,958 | 1,308 | |||||
Securities available for sale | 38,829 | 18,981 | ||||||
Investment in Woodbridge Holdings, LLC | 115,999 | 197,288 | ||||||
Investment in BankAtlantic Bancorp, Inc. | 2,377 | 47,555 | ||||||
Investment in and advances in other subsidiaries | 113 | 2,376 | ||||||
Notes receivable due from Woodbridge Holdings, LLC | 2,012 | — | ||||||
Other assets | 1,444 | 1,121 | ||||||
Total assets | $ | 165,732 | 268,629 | |||||
LIABILITIES AND EQUITY | ||||||||
Advances from wholly owned subsidiaries | $ | 942 | 818 | |||||
Other liabilities | 10,889 | 11,699 | ||||||
Total liabilities | 11,831 | 12,517 | ||||||
Redeemable 5% Cumulative Preferred Stock | 11,029 | 11,029 | ||||||
Shareholders’ equity | 142,872 | 245,083 | ||||||
Total liabilities and Equity | $ | 165,732 | 268,629 | |||||
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(In thousands)
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(As Revised) | ||||||||||||
Revenues | $ | 2,018 | 1,202 | 2,489 | ||||||||
Expenses | 8,586 | 8,567 | 11,405 | |||||||||
(Loss) before earnings from subsidiaries | (6,568 | ) | (7,365 | ) | (8,916 | ) | ||||||
Equity in (loss) earnings from Woodbridge Holdings, LLC | (39,368 | ) | 106,351 | (22,758 | ) | |||||||
Equity in loss in BankAtlantic Bancorp | (59,100 | ) | (57,895 | ) | (56,230 | ) | ||||||
Equity in (loss) earnings from other subsidiaries | (2,361 | ) | (467 | ) | 15 | |||||||
(Loss) income before income taxes | (107,397 | ) | 40,624 | (87,889 | ) | |||||||
Benefit for income taxes | (1,310 | ) | (517 | ) | (14,887 | ) | ||||||
(Loss) income from continuing operations | (106,087 | ) | 41,141 | (73,002 | ) | |||||||
Income (loss) from discontinued operations | 2,239 | (13,862 | ) | 4,958 | ||||||||
Extraordinary gain, net of tax | — | — | 9,145 | |||||||||
Net (loss) income | (103,848 | ) | 27,279 | (58,899 | ) | |||||||
5% Preferred Stock dividends | (750 | ) | (750 | ) | (750 | ) | ||||||
Net (loss) income allocable to common stock | $ | (104,598 | ) | 26,529 | (59,649 | ) | ||||||
(In thousands)
For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(As Revised) | ||||||||||||
Operating Activities: | ||||||||||||
Net cash used in operating activities | $ | (9,161 | ) | (6,245 | ) | (5,508 | ) | |||||
Investing Activities: | ||||||||||||
Proceeds from the sale of securities available for sale | 2,527 | — | 834 | |||||||||
Proceeds from maturities of securities available for sale | 38,068 | — | — | |||||||||
Distribution from subsidiaries | 45,085 | 30,084 | 633 | |||||||||
Additions to property and equipment | (65 | ) | — | (11 | ) | |||||||
Purchase of securities | (57,056 | ) | (1,111 | ) | — | |||||||
Acquisition of BankAtlantic Bancorp Class A shares | (15,000 | ) | (29,888 | ) | (3,925 | ) | ||||||
Net cash provided by (used in) investing activities | 13,559 | (915 | ) | (2,469 | ) | |||||||
Financing Activities: | ||||||||||||
Proceeds from issuance of Common Stock upon exercise of stock option | 2 | — | — | |||||||||
Purchase and retirement of the Company’s Class A common stock | — | — | (54 | ) | ||||||||
Preferred stock dividends paid | (750 | ) | (750 | ) | (750 | ) | ||||||
Net cash used in financing activities | (748 | ) | (750 | ) | (804 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 3,650 | (7,910 | ) | (8,781 | ) | |||||||
Cash at beginning of period | 1,308 | 9,218 | 17,999 | |||||||||
Cash at end of period | $ | 4,958 | 1,308 | 9,218 | ||||||||
Supplementary disclosure of non-cash investing and financing activities | ||||||||||||
BFC and Woodbridge Merger related transactions: | ||||||||||||
Increase in other liabilities | $ | — | 4,604 | — | ||||||||
Increase in BFC’s Class A Common Stock | — | 303 | — | |||||||||
Increase in additional paid-in capital | — | 94,676 | — | |||||||||
Decrease in BFC’s non-controlling interest in Woodbridge | — | (99,583 | ) | — | ||||||||
Net increase in shareholders’ equity from the effect of subsidiaries’ capital transactions, net of income taxes | 1,760 | 8,332 | 2,398 | |||||||||
(Decrease) increase in accumulated other comprehensive income, net of taxes | (1,069 | ) | 527 | (3,894 | ) | |||||||
Decrease in additional paid in capital from the re-classification of the 5% Preferred Stock to Redeemable Preferred stock | — | — | 11,029 | |||||||||
BFC’s pro rata share of the cumulative effect of accounting changes recognized by Bluegreen | — | 485 | — | |||||||||
Net decrease in shareholders’ equity resulting from cumulative effect of change in accounting principle | (1,496 | ) | — | — |
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276
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For the Year Ended December 31, 2010 | ||||||||||||||||
BFC | BankAtlantic Bancorp | Bluegreen | ||||||||||||||
Shared service income (expense) | (a | ) | $ | 2,565 | (2,105 | ) | (460 | ) | ||||||||
Facilities cost and information technology | (b | ) | $ | (544 | ) | 484 | 60 |
For the Year Ended December 31, 2009 | ||||||||||||||||
BFC | BankAtlantic Bancorp | Bluegreen | ||||||||||||||
Shared service income (expense) | (a | ) | $ | 2,342 | (1,805 | ) | (537 | ) | ||||||||
Facilities cost and information technology | (b | ) | $ | (553 | ) | 479 | 54 |
For the Year Ended December 31, 2008 | ||||||||||||||||
BFC | BankAtlantic Bancorp | Bluegreen | ||||||||||||||
Shared service income (expense) | (a | ) | $ | 2,022 | (1,593 | ) | (429 | ) | ||||||||
Facilities cost and information technology | (b | ) | $ | (440 | ) | 361 | 79 |
(a) | Pursuant to the terms of shared service agreements between BFC and BankAtlantic Bancorp, subsidiaries of BFC provide human resources, risk management, investor relations, executive office administration and other services to BankAtlantic Bancorp. Additionally, BFC provides certain risk management and administrative |
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services to Bluegreen. The costs of shared services are allocated based upon the usage of the respective services. | ||
(b) | As part of the shared service arrangement, BFC pays BankAtlantic and Bluegreen for the cost of office facilities utilized by BFC and its shared service operations. BFC also pays BankAtlantic for information technology related services pursuant to a separate agreement. BankAtlantic received approximately $154,000, $160,000 and $90,000 under the agreement during the years ended December 31, 2010, 2009 and 2008, respectively. |
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BankAtlantic Bancorp | ||||||||
Class A | Weighted | |||||||
Common | Average | |||||||
Stock | Price | |||||||
Options outstanding | 47,761 | $ | 55.26 | |||||
Non-vested restricted stock | 75,000 | — |
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For the Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands, except per share data) | (As Revised) | |||||||||||
Basic (loss) earnings per common share | ||||||||||||
Numerator: | ||||||||||||
Loss from continuing operations | $ | (182,152 | ) | (81,401 | ) | (347,999 | ) | |||||
Less: Noncontrolling interests loss from continuing operations | (76,065 | ) | (122,542 | ) | (274,997 | ) | ||||||
(Loss) income attributable to BFC | (106,087 | ) | 41,141 | (73,002 | ) | |||||||
Preferred stock dividends | (750 | ) | (750 | ) | (750 | ) | ||||||
(Loss) income allocable to common stock | (106,837 | ) | 40,391 | (73,752 | ) | |||||||
Discontinued operations | 1,965 | (11,931 | ) | 19,388 | ||||||||
Less: Noncontrolling interests (loss) income — discontinued operations | (274 | ) | 1,931 | 14,430 | ||||||||
Discontinued operations attributable to BFC | 2,239 | (13,862 | ) | 4,958 | ||||||||
Extraordinary gain attributable to BFC | — | — | 9,145 | |||||||||
Net (loss) income allocable to common shareholders | $ | (104,598 | ) | 26,529 | (59,649 | ) | ||||||
Denominator: | ||||||||||||
Basic weighted average number of common shares outstanding | 75,379 | 57,235 | 45,097 | |||||||||
Basic (loss) earnings per common share: | ||||||||||||
(Loss) earnings per share from continuing operations | $ | (1.42 | ) | 0.71 | (1.63 | ) | ||||||
Earnings (loss) per share from discontinued operations | 0.03 | (0.24 | ) | 0.11 | ||||||||
Earnings per share from extraordinary gain | — | — | 0.20 | |||||||||
Basic earnings (loss) per share | $ | (1.39 | ) | 0.47 | (1.32 | ) | ||||||
Diluted earnings (loss) per common share: | ||||||||||||
Numerator: | ||||||||||||
(Loss) income allocable to common stock after assumed dilution | (106,837 | ) | 40,391 | (73,752 | ) | |||||||
Discontinued operations allocable to common stock after assumed dilution | 2,239 | (13,862 | ) | 4,958 | ||||||||
Net income (loss) allocable to common stock after assumed dilution | $ | (104,598 | ) | 26,529 | (59,649 | ) | ||||||
Denominator | ||||||||||||
Diluted weighted average number of common shares outstanding | 75,379 | 57,235 | 45,097 | |||||||||
Diluted (loss) earnings per share | ||||||||||||
Earnings (loss) per share from continuing operations | $ | (1.42 | ) | 0.71 | (1.63 | ) | ||||||
Earnings (loss) per share from discontinued operations | 0.03 | (0.24 | ) | 0.11 | ||||||||
Earnings per share from extraordinary gain | — | — | 0.20 | |||||||||
Diluted earnings (loss) per share | $ | (1.39 | ) | 0.47 | (1.32 | ) | ||||||
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Notes to Consolidated Financial Statements
First | First | Second | Second | Third | Third | Fourth | ||||||||||||||||||||||||||
2010 | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Total | ||||||||||||||||||||||||
(As Previously | (As Previously | (As Previously | ||||||||||||||||||||||||||||||
(As-Revised) | Reported) | (As-Revised) | Reported) | (As-Revised) | Reported) | |||||||||||||||||||||||||||
Revenues (1) | $ | 156,437 | 151,991 | 189,036 | 183,252 | 180,757 | 183,904 | 156,446 | 682,676 | |||||||||||||||||||||||
Costs and expenses (2) | 194,066 | 192,464 | 229,715 | 229,109 | 221,116 | 224,576 | 233,738 | 878,635 | ||||||||||||||||||||||||
(37,629 | ) | (40,473 | ) | (40,679 | ) | (45,857 | ) | (40,359 | ) | (40,672 | ) | (77,292 | ) | (195,959 | ) | |||||||||||||||||
(Loss) gain on settlement of Investment in subsidiary | — | — | (1,135 | ) | (1,135 | ) | — | — | 158 | (977 | ) | |||||||||||||||||||||
Gain on extinguishment of debt | — | — | — | — | — | — | 13,049 | 13,049 | ||||||||||||||||||||||||
Equity in earnings (loss) from unconsolidated affiliates | 193 | 193 | 276 | 276 | 317 | 317 | (1,637 | ) | (851 | ) | ||||||||||||||||||||||
Other income | 438 | 438 | 1,199 | 1,199 | 498 | 498 | 556 | 2,691 | ||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (36,998 | ) | (39,842 | ) | (40,339 | ) | (45,517 | ) | (39,544 | ) | (39,857 | ) | (65,166 | ) | (182,047 | ) | ||||||||||||||||
Less: (Benefit) provision for income taxes (3) | (3,831 | ) | (4,591 | ) | 2,856 | 392 | (2,632 | ) | (996 | ) | 3,712 | 105 | ||||||||||||||||||||
Loss from continuing Operations | (33,167 | ) | (35,251 | ) | (43,195 | ) | (45,909 | ) | (36,912 | ) | (38,861 | ) | (68,878 | ) | (182,152 | ) | ||||||||||||||||
Discontinued operations, net of income tax | (249 | ) | (249 | ) | 2,714 | 2,714 | — | — | (500 | ) | 1,965 | |||||||||||||||||||||
Net loss | (33,416 | ) | (35,500 | ) | (40,481 | ) | (43,195 | ) | (36,912 | ) | (38,861 | ) | (69,378 | ) | (180,187 | ) | ||||||||||||||||
Less: Net loss attributable to noncontrolling interests (4) | (13,320 | ) | (14,665 | ) | (25,219 | ) | (27,015 | ) | (12,091 | ) | (11,239 | ) | (25,709 | ) | (76,339 | ) | ||||||||||||||||
Net loss attributable to BFC | (20,096 | ) | (20,835 | ) | (15,262 | ) | (16,180 | ) | (24,821 | ) | (27,622 | ) | (43,669 | ) | (103,848 | ) | ||||||||||||||||
Preferred Stock dividends | (188 | ) | (188 | ) | (187 | ) | (187 | ) | (188 | ) | (188 | ) | (187 | ) | (750 | ) | ||||||||||||||||
Net loss allocable to common stock | $ | (20,284 | ) | (21,023 | ) | (15,449 | ) | (16,367 | ) | (25,009 | ) | (27,810 | ) | (43,856 | ) | (104,598 | ) | |||||||||||||||
Basic Earnings (Loss) Per Common Share | ||||||||||||||||||||||||||||||||
Loss per share from continuing operations | $ | (0.27 | ) | (0.28 | ) | (0.24 | ) | (0.26 | ) | (0.33 | ) | (0.37 | ) | (0.58 | ) | (1.42 | ) | |||||||||||||||
Earnings per share from discontinued operations | — | — | 0.04 | 0.04 | — | — | — | 0.03 | ||||||||||||||||||||||||
Net loss per common share | $ | (0.27 | ) | (0.28 | ) | (0.20 | ) | (0.22 | ) | (0.33 | ) | (0.37 | ) | (0.58 | ) | (1.39 | ) | |||||||||||||||
Diluted Earnings (Loss) per Common Share | ||||||||||||||||||||||||||||||||
Loss per share from continuing operations | $ | (0.27 | ) | (0.28 | ) | (0.24 | ) | (0.26 | ) | (0.33 | ) | (0.37 | ) | (0.58 | ) | (1.42 | ) | |||||||||||||||
Earnings per share from discontinued operations | — | — | 0.04 | 0.04 | — | — | — | 0.03 | ||||||||||||||||||||||||
Net loss per common share | $ | (0.27 | ) | (0.28 | ) | (0.20 | ) | (0.22 | ) | (0.33 | ) | (0.37 | ) | (0.58 | ) | (1.39 | ) | |||||||||||||||
Basic weighted average number of common shares outstanding | 75,376 | 75,376 | 75,379 | 75,379 | 75,381 | 75,381 | 75,381 | 75,379 | ||||||||||||||||||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 75,376 | 75,376 | 75,379 | 75,379 | 75,381 | 75,381 | 75,381 | 75,379 | ||||||||||||||||||||||||
1) | Includes corrections related to the provision for loan losses and recognition of interest income in accordance with the accounting guidance forLoans and Debt Securities with Deteriorated Credit Qualityfor the Bluegreen acquired notes receivable. These corrections are as follows (a) a $4.4 million increase to revenue for the quarter ended March 31, 2010 (b) a $5.8 million increase to revenue for quarter ended June 30, 2010 and (c) a $3.1 million decrease to revenue for the quarter ended September 30, 2010. | |
2) | Includes certain corrections related to the interest rates used in the calculation of interest expense on defaulted notes payable at Core Communities and Carolina Oak and revisions related to the subsequent amortization from the measurement period adjustments of real estate inventory and certain contracts. These adjustments resulted in changes to costs and expenses by the following: (a) a $1.6 million increase for the quarter ended March 31, 2010 (b) a $606,000 increase for the quarter ended June 30, 2010 and (c) a decrease of $3.5 million for the quarter ended September 30, 2010. | |
3) | Includes tax adjustments as they relate to the corrections noted above and the recognition of income tax benefits associated with unrealized gains in accumulated other comprehensive income at BankAtlantic Bancorp and BFC. The net adjustments are as follows: (a) a $760,000 decrease in tax benefit for the quarter ended March 31, 2010 (b) a $2.5 million increase in tax provision for the quarter ended June 30, 2010 and (c) a $1.6 million increase in tax benefit for the quarter ended September 30, 2010. | |
4) | As a result of the revisions noted above, the net loss attributable to noncontrolling interest changed by the following: (a) a $1.3 million decrease for the quarter ended March 31, 2010 (b) a $1.8 million decrease for the quarter ended June 30, 2010 and (c) an $852,000 increase for the quarter ended September 30, 2010. |
For the Six Months Ended | For the Nine Months Ended | |||||||||||||||
2010 | June 30, 2010 | September 30, 2010 | ||||||||||||||
(As Previously | (As Previously | |||||||||||||||
(As Revised) | Reported) | (As-Revised) | Reported) | |||||||||||||
Revenues (1) | $ | 345,473 | 335,243 | 526,230 | 519,147 | |||||||||||
Costs and expenses (2) | 423,781 | 421,573 | 644,897 | 646,149 | ||||||||||||
(78,308 | ) | (86,330 | ) | (118,667 | ) | (127,002 | ) | |||||||||
Loss on settlement of investment in subsidiary | (1,135 | ) | (1,135 | ) | (1,135 | ) | (1,135 | ) | ||||||||
Equity in earnings from unconsolidated affiliates | 469 | 469 | 786 | 786 | ||||||||||||
Other income | 1,637 | 1,637 | 2,135 | 2,135 | ||||||||||||
Loss from continuing operations before income taxes | (77,337 | ) | (85,359 | ) | (116,881 | ) | (125,216 | ) | ||||||||
Less: Benefit for income taxes (3) | (975 | ) | (4,199 | ) | (3,607 | ) | (5,195 | ) | ||||||||
Loss from continuing operations | (76,362 | ) | (81,160 | ) | (113,274 | ) | (120,021 | ) | ||||||||
Discontinued operations | 2,465 | 2,465 | 2,465 | 2,465 | ||||||||||||
Net loss | (73,897 | ) | (78,695 | ) | (110,809 | ) | (117,556 | ) | ||||||||
Less: Net loss attributable to noncontrolling interests (4) | (38,539 | ) | (41,680 | ) | (50,630 | ) | (52,919 | ) | ||||||||
Net loss attributable to BFC | (35,358 | ) | (37,015 | ) | (60,179 | ) | (64,637 | ) | ||||||||
Preferred Stock dividends | (375 | ) | (375 | ) | (563 | ) | (563 | ) | ||||||||
Net loss allocable to common stock | $ | (35,733 | ) | (37,390 | ) | (60,742 | ) | (65,200 | ) | |||||||
Basic (Loss) Earnings per Common Share | ||||||||||||||||
Loss per share from continuing operations | $ | (0.50 | ) | (0.53 | ) | (0.84 | ) | (0.90 | ) | |||||||
Earnings per share from discontinued operations | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||||||
Net loss per common share | $ | (0.47 | ) | (0.50 | ) | (0.81 | ) | (0.87 | ) | |||||||
Diluted (Loss) Earnings per Common Share | ||||||||||||||||
Loss per share from continuing operations | $ | (0.50 | ) | (0.53 | ) | (0.84 | ) | (0.90 | ) | |||||||
Earnings per share from discontinued operations | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||||||
Net loss per common share | $ | (0.47 | ) | (0.50 | ) | (0.81 | ) | (0.87 | ) | |||||||
Basic weighted average number of common shares outstanding | 75,378 | 75,378 | 75,379 | 75,379 | ||||||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 75,378 | 75,378 | 75,379 | 75,379 | ||||||||||||
1) | Includes corrections related to the provision for loan losses and recognition of interest income in accordance with the accounting guidance forLoans and Debt Securities with Deteriorated Credit Qualityfor the Bluegreen acquired notes receivable. These corrections are as follows: (a) a $10.2 million increase to revenue for the six months ended June 30, 2010 and (b) a $7.1 million increase to revenue for the nine months ended September 30, 2010. | |
2) | Includes certain corrections related to the interest rates used in the calculation of interest expense on defaulted notes payable at Core Communities and Carolina Oak and revisions related to the subsequent amortization from the measurement period adjustments of real estate inventory and certain contracts. These adjustments resulted in changes to costs and expenses by the following: (a) a $2.2 million increase for the six months ended June 30, 2010 and (b) a $1.3 million decrease for the nine months ended September 30, 2010. | |
3) | Includes tax adjustments as they relate to the corrections noted above and the recognition of income tax benefits associated with unrealized gains in accumulated other comprehensive income at BankAtlantic Bancorp and BFC. The net adjustments are as follows: (a) a $3.2 million decrease in tax benefit for the six months ended June 30, 2010 and (b) a $1.6 million decrease in tax benefit for the nine months ended September 30, 2010. | |
4) | As a result of the revisions noted above, the net loss attributable to noncontrolling interest changed by the following: (a) $3.1 million decrease for the six months ended June 30, 2010 and (b) a $2.3 million decrease for the nine months September 30, 2010. |
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Notes to Consolidated Financial Statements
First | Second | Third | Fourth | Fourth | ||||||||||||||||||||
2009 | Quarter | Quarter | Quarter | Quarter | Quarter | Total | ||||||||||||||||||
(As Revised) | (As Previously Reported) | (As Revised) | ||||||||||||||||||||||
Revenues (1) | $ | 98,027 | 91,492 | 90,590 | 128,257 | 125,886 | 408,366 | |||||||||||||||||
Costs and expenses | 155,504 | 142,690 | 189,128 | 293,440 | 293,037 | 780,762 | ||||||||||||||||||
(57,477 | ) | (51,198 | ) | (98,538 | ) | (165,183 | ) | (167,151 | ) | (372,396 | ) | |||||||||||||
Gain on bargain purchase of Bluegreen (2) | — | — | — | 182,849 | 183,138 | 182,849 | ||||||||||||||||||
Gain (loss) on settlement of investment in Woodbridge’s subsidiary | 40,369 | — | — | (10,690 | ) | (10,690 | ) | 29,679 | ||||||||||||||||
Equity in earnings from unconsolidated affiliates | 6,495 | 10,755 | 12,213 | 3,918 | 3,918 | 33,381 | ||||||||||||||||||
Impairment of unconsolidated affiliates | (20,401 | ) | — | (10,780 | ) | — | — | (31,181 | ) | |||||||||||||||
Impairment of investments | (2,396 | ) | — | — | — | — | (2,396 | ) | ||||||||||||||||
Investment gains | — | — | — | 6,654 | 6,654 | 6,654 | ||||||||||||||||||
Other income | 981 | 778 | 766 | 584 | 584 | 3,109 | ||||||||||||||||||
(Loss) income from continuing operations before income taxes | (32,429 | ) | (39,665 | ) | (96,339 | ) | 18,132 | 16,453 | (150,301 | ) | ||||||||||||||
Less: Provision (benefit) for income taxes (3) | — | — | 3 | (68,903 | ) | (67,221 | ) | (68,900 | ) | |||||||||||||||
(Loss) income from continuing operations | (32,429 | ) | (39,665 | ) | (96,342 | ) | 87,035 | 83,674 | (81,401 | ) | ||||||||||||||
Discontinued operations | 3,397 | 139 | (1,367 | ) | (14,100 | ) | (14,100 | ) | (11,931 | ) | ||||||||||||||
Net (loss) income | (29,032 | ) | (39,526 | ) | (97,709 | ) | 72,935 | 69,574 | (93,332 | ) | ||||||||||||||
Less: Net loss attributable to noncontrolling interests (4) | (18,629 | ) | (26,617 | ) | (43,697 | ) | (31,668 | ) | (33,471 | ) | (120,611 | ) | ||||||||||||
Net (loss) income attributable to BFC | (10,403 | ) | (12,909 | ) | (54,012 | ) | 104,603 | 103,045 | 27,279 | |||||||||||||||
Preferred Stock dividends | (188 | ) | (187 | ) | (188 | ) | (187 | ) | (187 | ) | (750 | ) | ||||||||||||
Net (loss) income allocable to common stock | $ | (10,591 | ) | (13,096 | ) | (54,200 | ) | 104,416 | 102,858 | 26,529 | ||||||||||||||
Basic Earnings (Loss) per Common Share | ||||||||||||||||||||||||
(Loss) earnings per share from continuing operations | $ | (0.26 | ) | (0.29 | ) | (1.08 | ) | 1.33 | 1.32 | 0.71 | ||||||||||||||
Earnings (loss) per share from discontinued operations | 0.03 | — | (0.01 | ) | (0.16 | ) | (0.16 | ) | (0.24 | ) | ||||||||||||||
Net (loss) income per common share | $ | (0.23 | ) | (0.29 | ) | (1.09 | ) | 1.18 | 1.16 | 0.47 | ||||||||||||||
Diluted Earnings (Loss) per Common Share | ||||||||||||||||||||||||
(Loss) earnings per share from continuing operations | $ | (0.26 | ) | (0.29 | ) | (1.08 | ) | 1.32 | 1.30 | 0.71 | ||||||||||||||
Earnings (loss) per share from discontinued operations | 0.03 | — | (0.01 | ) | (0.16 | ) | (0.16 | ) | (0.24 | ) | ||||||||||||||
Net (loss) income per common share | $ | (0.23 | ) | (0.29 | ) | (1.09 | ) | 1.15 | 1.14 | 0.47 | ||||||||||||||
Basic weighted average number of common shares outstanding | 45,114 | 45,126 | 49,509 | 88,795 | 88,795 | 57,235 | ||||||||||||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 45,114 | 45,126 | 49,509 | 89,929 | 89,929 | 57,235 | ||||||||||||||||||
1) | Includes a correction of approximately $2.4 million which increased revenue and is related to the provision for loan losses on the Bluegreen acquired notes receivable. | |
2) | Includes a net decrease of approximately $289,000 as a result of the following (a) the measurement period adjustments of real estate inventory and certain contracts (See Note 4 of the “Notes to the Consolidated Financial Statements”) and (b) tax adjustment related to the deferred taxes calculated in the acquisition of the additional shares in Bluegreen (See Note 1). | |
3) | Includes a $1.7 million increase to the tax benefit for the fourth quarter as it relates to the corrections noted above and the recognition of income tax benefits associated with unrealized gains in accumulated other comprehensive income at BankAtlantic Bancorp and BFC. | |
4) | Includes a $1.8 million decrease in the loss attributable to noncontrolling interest in the fourth quarter due to the increase in revenue and the measurement period adjustments of real estate inventory and certain contracts as noted above. |
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DISCLOSURE
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Number of securities | ||||||||||||
Remaining available for | ||||||||||||
Number of securities to | Weighted-average | future issuance under | ||||||||||
be issued upon exercise | exercise price of | equity compensation plans | ||||||||||
of outstanding options | of outstanding options | (excluding outstanding | ||||||||||
Plan category | warrants or rights | warrants or rights | options) | |||||||||
Equity compensation plans approved by security holders | 2,492,176 | $ | 0.41 | 4,118,013 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 2,492,176 | $ | 0.41 | 4,118,013 | ||||||||
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(a) | Documents Filed as Part of this Report: |
(1) | Financial Statements | ||
The following consolidated financial statements of BFC Financial Corporation and its subsidiaries are included herein under Part II, Item 8 of this Report. |
Report of Independent Registered Certified Public Accounting Firm. | |||
Consolidated Statements of Financial Condition as of December 31, 2010 and 2009. | |||
Consolidated Statements of Operations for each of the years in the three year period ended December 31, 2010. | |||
Consolidated Statements of Comprehensive Income (Loss) for each of the years in the three year period ended December 31, 2010. | |||
Consolidated Statements of Changes in Equity for each of the years in the three year period ended December 31, 2010. | |||
Consolidated Statements of Cash Flows for each of the years in the three year period ended December 31, 2010. | |||
Notes to Consolidated Financial Statements. |
(2) | Financial Statement Schedules | ||
Audited Financial Statements of Bluegreen Corporation for each of the years in the three year period ended December 31, 2010 (See Exhibit 99.1). | |||
Schedules not listed above are omitted as the required information is either not applicable or is presented in the financial statements or related notes. |
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(3) | Exhibits | |
The following exhibits are either filed as a part of or furnished with this report or are incorporated herein by reference to documents previously filed as indicated below: |
Exhibit | ||||
Number | Description | Reference | ||
3.1 | Amended and Restated Articles of Incorporation, effective October 8, 1997 | Exhibit 3.1 of Registrant’s Registration Statement on Form 8-A filed October 16, 1997 | ||
3.2 | Amendment to the Amended and Restated Articles of Incorporation, effective June 18, 2002 | Exhibit 4 of Registrant’s Current Report on Form 8-K, filed June 27, 2002 | ||
3.3 | Amendment to the Amended and Restated Articles of Incorporation, effective April 15, 2003 | Appendix B of Registrant’s Definitive Proxy Statement on Schedule 14A filed April 18, 2003 | ||
3.4 | Amendment to the Amended and Restated Articles of Incorporation, effective February 7, 2005 | Appendix A of Registrant’s Definitive Information Statement on Schedule 14C filed January 18, 2005 | ||
3.5 | Amendment to the Amended and Restated Articles of Incorporation, effective June 22, 2004, as amended on December 17, 2008 | Exhibit 3.1 of Registrant’s Current Report on Form 8-K filed December 18, 2008 | ||
3.6 | Amendment to the Amended and Restated Articles of Incorporation, effective May 19, 2009 | Appendix A of Registrant’s Definitive Proxy Statement on Schedule 14A filed April 29, 2009 | ||
3.7 | Amendment to the Amended and Restated Articles of Incorporation, effective September 21, 2009 | Annex D of Registrant’s Joint Proxy Statement/Prospectus that forms a part of Amendment No. 1 to Registration Statement on Form S-4 filed August 14, 2009 | ||
3.8 | Amendment to the Amended and Restated Articles of Incorporation, effective September 21, 2009 | Exhibit 3.8 of Registrant’s Current Report on Form 8-K filed September 25, 2009 | ||
3.9 | By-laws, as amended, effective September 21, 2009 | Annex E of Registrant’s Joint Proxy Statement/Prospectus that forms a part of Amendment No. 1 to Registration Statement on Form S-4 filed August 14, 2009 | ||
10.1 | BFC Financial Corporation 2005 Stock Incentive Plan, as amended on May 19, 2009 | Appendix B to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on April 29, 2009 | ||
10.2 | BFC Financial Corporation Stock Option Plan | Appendix A to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on July 31, 1996. | ||
10.3 | Agreement by and between Core Communities, LLC, a Florida limited liability company, Horizons Acquisition 5, LLC, a Florida limited liability company, Core Communities of South Carolina, LLC, a South Carolina limited liability company and PSL Acquisitions, LLC, an Iowa limited liability company doing business in the State of Florida as PSL Acquisitions I, LLC | Filed with this Report | ||
21.1 | Subsidiaries of the Registrant | Filed with this Report | ||
23.1 | Consent of PricewaterhouseCoopers LLP | Filed with this Report | ||
23.2 | Consent of Ernst & Young LLP | Filed with this Report | ||
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed with this Report | ||
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed with this Report | ||
31.3 | Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed with this Report | ||
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished with this Report | ||
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished with this Report | ||
32.3 | Certification of Chief Accounting Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished with this Report | ||
99.1 | Audited financial statements of Bluegreen Corporation for each of the years in the three year period ended December 31, 2010 | Filed with this Report |
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BFC FINANCIAL CORPORATION | ||||
April 8, 2011 | By: | /s/ Alan B. Levan | ||
Alan B. Levan, Chairman of the Board, | ||||
President and Chief Executive Officer | ||||
Signature | Title | Date | ||
/s/ Alan B. Levan | April 8, 2011 | |||
Alan B. Levan | Chairman of the Board, President and Chief Executive Officer | |||
/s/ John E. Abdo | April 8, 2011 | |||
John E. Abdo | Vice Chairman of the Board | |||
/s/ Seth M. Wise | April 8, 2011 | |||
Seth M. Wise | Executive Vice President and Director | |||
/s/ John K. Grelle | April 8, 2011 | |||
John K. Grelle | Chief Financial Officer | |||
/s/ Maria R. Scheker | April 8, 2011 | |||
Maria R. Scheker | Chief Accounting Officer | |||
/s/ D. Keith Cobb | April 8, 2011 | |||
D. Keith Cobb | Director | |||
/s/ Darwin Dornbush | April 8, 2011 | |||
Darwin Dornbush | Director | |||
/s/ Oscar J. Holzmann | April 8, 2011 | |||
Oscar J. Holzmann | Director | |||
/s/ Jarett Levan | April 8, 2011 | |||
Jarett Levan | Director | |||
/s/ Alan Levy | April 8, 2011 | |||
Alan Levy | Director | |||
/s/ Joel Levy | April 8, 2011 | |||
Joel Levy | Director | |||
/s/ William Nicholson | April 8, 2011 | |||
William Nicholson | Director | |||
/s/ Neil A. Sterling | April 8, 2011 | |||
Neil A. Sterling | Director |
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